Board Meeting Minutes - 2/8/22

City of San Diego Retired Employees Association

February 8, 2022

Board Meeting Minutes

NOTES: All votes were unanimous unless otherwise noted. The meeting was held via Zoom

Call to Order: The meeting was called to order by President Dick Wilken at 9:15am.

Board Members Present: Jim Baross, Mike Bresnahan, Chris Brewster, Karen Butler, Shirley Hall, Joan Hernandez, Brad Jacobsen, Joan McNamara, Mary Ann Stepnowsky, John Tsiknas, Dick Wilken, and Janet Wood

Guests Present: Joe Flynn, Stacey LoMedico

AGENDA: There were no additions or changes to the agenda.

MINUTES: The minutes of the January 2022 Board meeting were approved.

TREASURER’S REPORT: Karen reported that the recent purchase of funds in the Russell 3000 will appear in the February report.

M/S/C to accept the January 2022 Treasurer’s Report.

INVESTMENT COMMITTEE REPORT: John reported that the Russell 3000 experienced a rather large correction, but the overall appreciation is still good at a rather healthy 54.73%. The Money Market appreciation is 3.00% and the legal fund total is $325,205.

RETIREMENT BOARD REPRESENTATIVE’S REPORT: Charlie reported via email that the next SDCERS Board meeting is in March.

COMMUNICATIONS AND INFORMATION ITEMS:

1) Dick, Chris, Jim, Janet, and Mike met with Mike Zucchet and discussed the post-Prop B solutions. Members of MEA and Local 127 will be given the choice of joining SDCERS or keeping their 401k plans, and the decision will be irrevocable. Fire Department and Deputy City Attorneys members are encouraged to join SDCERS but as yet there is no signed agreement with the City.

2) Voice of San Diego added references to REA’s participation the “Read Across America” event in our sponsorship promos.

3) Stacey reported that six months into our Volunteer Program, there are 36 participants. REA volunteers have participated in three events to date, with two more coming. She also reported that individuals who want to participate in City-sponsored event need to be registered with the City.

ACTION ITEMS:

1) There was discussion about returning to in-person meetings. Factors affecting the decision include moving too quickly and possibly being forced back to Zoom if there is another wave of Covid variants; County Health Director Dr Wilma Wooten, a possible speaker, does not do in-person meetings; and we don’t know if we will be having a June meeting. In the end, it was decided to wait and see how things shake out.

2) An Audit Committee was formed. Mike Bresnahan will serve as the Board member. Because Abby Salaiz is not yet Treasurer she can serve as the General Membership member of the committee.

ADVOCACY COMMITTEE REPORT

1) Mike reported on the status of an MOU with SDCERS for third-party mailing services, which SDCERS has agreed to facilitate, so long as we have a signed MOU in place. Part of the MOU is a boilerplate hold-harmless agreement that SDCERS apparently requires as a standard practice. Dick is reviewing our insurance and whether it might be prudent to modify coverage to address this and other potential liabilities. That review will take place prior to a final decision on the mailing and MOU.

2) Mike reported that state law was recently modified to require plan sponsors in the state retirement systems (e.g., CALPERS) to make employees whole when the sponsor makes an error regarding a retiree’s benefit calculations. The Advocacy Committee will be reviewing whether such a rule might be appropriate vis-à-vis the City of San Diego and SDCERS, and if so, what would be required to make that happen. One option would be a policy to waive interest, but it could possibly be more comprehensive. Whether this could be achieved is an unknown, but the Advocacy Committee will conduct a review.

3) The City has changed the health care plan year to be a calendar year, so the Health Fair will now be held in October.

Strength of the Past, Voice of the Future

Board Meeting Minutes – 2/8/22