HomeMy WebLinkAboutMinutes - 2017.05.25 - 32968OAKLAND COUNTY EMPLOYEES'
RETIREMENT AND DEFERRED COMPENSATION BOARD
INVESTMENT SUB-COMMITTEE MINUTES
A meeting of the Oakland County Employees' Retirement and Deferred Compensation Board
Investment Sub-Committee was held May 25, 2017 at 10:30 a.m. in the Royal Oak
conference room, Executive Office Building (EOB).
Members Present: James H. VanLeuven, Jr. Joseph Rozell Laurie Van Pelt
Absent: Andy Meisner
Others Present: Jeff Phelps, Commissioner Rhonda Van Tiflin, Human Resources
Natalie Neph, Treasurer Jennifer Hain, Human Resources
Jason May, Graystone Paige Ritchie, Human Resources
Freddie Sarno, Graystone
1. Jason May stated that Graystone had concluded a review of the 401(a) Defined
Contribution and 457(b) Deferred Compensation plan documents that had been provided.
They found no issues and Graystone had no recommendations for any changes at this
time.
2. Jason May and Freddie Sarno of Graystone presented to the Sub-Committee and provided
accompanying materials entitled 401(a) & 457(b) Plan 1Q 2017 Report:
I. Investment Policy Statement
a. Discussion on best practices. Once consolidation under a single
recordkeeper is achieved, Graystone recommends:
• Offering a single qualified default investment (QDIA) alternative
amongst the two plans (401(a) Defined Contribution and 457
Deferred Compensation).
• A “through” vs. “to” style QDIA be offered to address longevity risk.
• Reducing the number of investment offerings in each plan to
between 12-20 funds (target date funds counting as one).
b. Motion by Van Pelt, seconded by Rozell, to recommend the Oakland
County 401(a) & 457(b) Statement of Investment Policy Objectives &
Guidelines presented by Graystone to the full Retirement and Deferred
Compensation Board for adoption. Motion Carried.
II. Plan Investment Review for period ending March 31, 2017 on the 401(a) Plan
with ICMA-RC:
a. Motion by Van Pelt, seconded by Rozell, to recommend the following
changes to the ICMA-RC 401(a) Plan investment lineup to the full
Retirement and Deferred Compensation Board for adoption. Motion
carried.
• Remove Franklin Rising Dividend and move those assets to the
Fidelity 500 Index Fund
• Remove Harbor International and move those assets to the MFS
International Value R6 Fund
• Remove Goldman Sachs Mid Cap Value and Columbia Mid Cap
Value and move those assets to the Victory Sycamore Established
Value Fund
• Remove Franklin Natural Resources and move those assets to the
Dreyfus Natural Resources I Fund
• Add JP Morgan SmartRetirement 2050, 2055, and 2060
Investment Sub-Committee Minutes
Oakland County Employees’ Retirement and Deferred Compensation Board
May 25, 2017
Page 2
III. Plan Investment Review for period ending March 31, 2017 on the 457(b) with
401(a) Match Plan with Fidelity:
a. Motion by Van Pelt, seconded by Rozell, to recommend the following
changes within the Fidelity 457(b) with 401(a) Match Plan investment
offering lineup to the full Retirement and Deferred Compensation Board
for adoption. Motion carried.
• Remove Goldman Sachs Mid Cap Value and move those assets
to the Victory Sycamore Established Value Institutional Fund
• Remove Prudential Jennison Natural Resources and move those
assets to the Dreyfus Natural Resources I Fund
• Remove AB Discovery Value Fund and move those assets to the
Victory Sycamore Established Value Fund
• Add T. Rowe Price Retirement 2060
IV. RFP Process
a. Discussed draft RFP and desired updates to be made in revised draft by
Graystone:
• Increase scope to include other plans operated by Retirement Unit
of Human Resources to take advantage of economies of scale for
total assets under management:
i. Part Time Non-Eligible (PTNE) 457 plan
ii. Retiree Health Savings (RHS) plan
iii. Sidecar IRA (Roth and Traditional)
iv. Payroll deduct IRA (Roth and Traditional)
• Designate need to offer the Prudential VT Retirement Income
Advantage Fund, or if a vendor is proposing an equivalent
investment, detail on how to handle the transition.
• Scope of participant education to a minimum of 60 days per year,
five on-site days per month.
• No commitment on pricing structure of per participant fee vs.
traditional pricing and transparency.
• Loans directly deducted from participant’s bank via ACH
• Recordkeeper assumes duty for initial hardship determination,
hardship appeals to Retirement Board.
• 457(b) new hire automatic enrollment at a zero deferral.
• Phone or on-line deferral changes allowed for 457(b) plans.
i. Offering of both straight dollar and percentage deferrals via
either method (phone or on-line).
• Vendor to provide detail on how 12 month put on the stable value
fund rollover would be addressed.
b. Graystone is to provide this Sub-Committee final draft prior to issue and
all responses. Graystone will conduct initial evaluation of respondents
and develop a finalist list for the Sub-Committee’s consideration.
3. Discussion on investment in options being offered through the Self Directed Brokerage
Accounts (SDBA). Graystone offers to research if there’s any legal restriction, but advises
that they have not seen this offered by other plans and would advise against it due to the
increased risk.
4. Moved by Rozell, seconded by Van Pelt, to adjourn the meeting at 12:38 p.m. Motion carried.
Respectfully submitted,
________________________________ ________________________________
James H. VanLeuven, Jr., Chairperson Rhonda Van Tiflin, Assistant Secretary