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Retirement Board

Tuesday, September 30, 2008
Gavilan College, Office of the President

1) Call Meeting to Order:
  Superintendent/President Steve Kinsella called the meeting to order at 2:40 p.m. The Retirement Board members, all present, are as follows:
Leonard Washington, Clerk of the Board of Trustees Steve Kinsella, "Designated Member" to the Retiree Health Benefit JPA Joseph Keeler, "Designated Alternate" to the Retiree Health Benefit JPA
2) Comments from the Public:
  No comments from the public.
3) Approve Minutes:
  This is the first Retirement Board meeting. There are no previous minutes to approve.
4) Review Board action to establish a "Retirement Board" to review the District's investment:
  The Retirement Board reviewed the attached Board of Trustees action to approve Resolution No 879 to establish the Retirement Board.
5) Review investment options:
  Using information from the Retirement Health Benefit JPA titled, "How the Investment Committee Develops its Investment Options", Steve reviewed the eight different investment options available through the JPA. Steve noted that when the District joined the Retirement Health Benefit JPA, the Board of Trustees selected the "balanced" option which is made up of a 50% fixed income and 50% equity blend.
6) Review investment results and recommendation to Board of Trustees concerning investment allocation method:

Review investment results:
Using the attached information from Union Bank of California, the agent for the Retirement Health Benefit Trust, Steve reviewed the Retirement Health Benefit Trust investment portfolio status as of June 30, 2008 which was presented to the Board of Trustees as an information item at the August 12, 2008 Board of Trustees meeting. Steve noticed that there has been a decrease of about 10% ($543,000) between the original book value of the mutual funds and the current market value. Leonard noted that the new market value is $4.7 million but the last actuarial projected liability was $4.8 million and he was concerned that the trust did not have adequate resources to meet the liability. Joe noted that within the next 2-3 months, the District will receive an updated actuarial study and an updated liability will be calculated. Steve reviewed the basic trends and assumptions that are being used in the updated actuarial study.

Investment Allocation Method Recommendation to Board of Trustees:
The Retirement Board unanimously agreed to recommend to the Board of Trustees that the District stay with the "balanced" allocation method. Leonard added that he thought it was important to review the other seven options available with the Board of Trustees.

7) Adjourned: Meeting adjourned at 3:25 p.m.

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Last modified: November 16, 2009
Gavilan College 5055 Santa Teresa Boulevard Gilroy, CA 95020 (408) 848-4800