10/17/2011
PENSION TRUSTEES AGENDA
Location: Council Chambers - City Hall
Date: 10/17/2011- 9:00 AM
1. Call to Order
2. Approval of Minutes
2.1Approve the minutes of the August 29, 2011 Pension Trustees meeting as submitted in written summation
by the City Clerk.
Attachments
3. Pension Trustee Items
3.1Approve the new hires for acceptance into the Pension Plan as listed.
Attachments
3.2Approve the request of employee John Scacca, Police Department, for a regular pension as provided by
Sections 2.397 and 2.398 of the Employees Pension Plan.
Attachments
3.3Approve the termination of Wellington Management Company as an emerging markets money manager
and redistribution of the funds to rebalance the portfolio.
Attachments
4. Other Business
5. Adjourn
Meeting Date:
10/17/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the minutes of the August 29, 2011 Pension Trustees meeting as submitted in written summation by the City Clerk.
SUMMARY:
Review Approval:
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Meeting Date:
10/17/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the new hires for acceptance into the Pension Plan as listed.
SUMMARY:
Pension
Name, Job. Class, & Dept./Div. Hire Date Elig. Date
Brian Munoz, Police Officer/Police 2/2/05 8/1/11 *
*originally employed in 11/1/04; resigned 4/29/11 and withdrew pension contributions; withdrew resignation and returned to work
8/1/11; pension eligible as of this date
Review Approval:
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10/17/2011
Meeting Date:
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the request of employee John Scacca, Police Department, for a regular pension as provided by Sections 2.397 and 2.398 of the
Employees Pension Plan.
SUMMARY:
, was employed by the City on August 20, 1979, and his pension service credit is
John Scacca, Police Sergeant, Police Department
effective on that date. His pension will be effective October 1, 2011.
Based on an average salary of approximately $90,860 per year over the past five years, the formula for computing regular pensions, and
Mr. Scaccas selection of the 66 2/3% Joint & Survivor Annuity, this pension will approximate $81,964 annually.
Section 2.397 provides for normal retirement eligibility when a participant has completed twenty years of credited service or has
reached age 55 and completed ten years of credited service in a type of employment described as hazardous duty and further defines
service as a Police Sergeant as meeting the hazardous duty criteria. Mr. Scacca qualifies under the hazardous duty criteria.
Review Approval:
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Meeting Date:
10/17/2011
Pension Trustees Agenda
Council Chambers - City Hall
SUBJECT / RECOMMENDATION:
Approve the termination of Wellington Management Company as an emerging markets money manager and redistribution of the funds
to rebalance the portfolio.
SUMMARY:
Currently the pension plan has an 8% exposure to the emerging market asset class. Cap Trust, the pension plans
financial advisor, has recommended that the allocation to emerging markets be reduced to 5%. The pension plan
currently has two managers in this asset class. After a review of the two managers, Cap Trust and the Pension
Investment Committee are recommending the termination of Wellington Management Company. The following is a
summary of the respective performance of the two current emerging markets money managers:
6m 2011 2010 2009 3 year
Eaton Vance 0.09% 23.33% 67.01% 4.84%
Wellington -3.61% 15.99% 74.44% 2.47%
Benchmark 1.03% 19.19% 79.02% 4.53%
Since inception, Eaton Vance returned 2.25% versus a benchmark of 1.49%. Since inception, Wellington has returned
3.11% versus a benchmark of 3.92%.
Currently the financial markets are experiencing high volatility. At the termination of Wellington, staff will use the
funds from Wellington to rebalance the portfolio between the various asset categories.
Type:Other
Current Year Budget?:Yes Budget Adjustment:None
Budget Adjustment Comments:
Current Year Cost:Annual Operating Cost:
Not to Exceed:Total Cost:
For Fiscal Year: to
Review Approval:1) Clerk 2) Assistant City Manager 3) City Manager 4) Clerk
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