A meeting of the Governing Board of the Colorado Retirement Association was held on June 17, 2022, at 9:00 a.m.
The following were present at the meeting:
- Chris Felton, Board Chairman-Participated by Zoom
- Paul Danley, Vice Chairman-Participated by Zoom
- Darius Allen, Board Member-Participated by Zoom
- Tobe Allumbaugh, Board Member-Participated by Zoom
- Jerry DiTullio, Board Member-Participated by Zoom
- Terri Schafer, Board Member-Participated by Zoom
- Tim Mullen, Executive Director
- Ed Krisor, Legal Counsel
- Denis Rice, Chief Financial Officer
- Mike Whalen, Retirement Plan Services Director-Participated by Zoom
- Matt Evans, Retirement Services Coordinator
- Lois Kruse, Office Administrator
- Meghan Martinez, Board Member Elect from Town of Frederick-Participated by Zoom
Adam Ford, Board Member was not in attendance.
Board Chair Chris Felton, called the meeting to order at 9:01 a.m.
Mr. Felton asked members of the Board if they reviewed the minutes from the May 23, 2022 meeting and if there were any comments. There being none, a motion was made by Tobe Allumbaugh to approve the minutes as presented. Darius Allen seconded the motion and it passed unanimously. There were no modifications to the agenda.
Denis Rice began his presentation noting that June 9, 2022, year-to-date (YTD) fund performances ranged from a low of -31.03% (Harbor Capital Appreciation Institutional) to a high of .69% (CRA Book Value Fund). CRA’s Alternative Investments, available only within the Target Date Portfolios, performed even better with a low of -10.72% (DFA Emerging Markets Core Equity) and a high of 22.48% (Tortoise MLP & Pipeline Fund I). Comparatively, through June 9, 2022 the S&P was down by 15.70%.
As of May 31, 2022, the YTD blended rate of return for both the 401(a) and 457(b) plans is -8.92%.
Total loans for the 401(a) plan are down with slightly higher average loan balances. Total 457(b) loans are up with slightly lower average balances.
Mr. Mullen introduced Meghan Martinez. Meghan is the new CRA Board member effective July 1, 2022 and is the town clerk for the Town of Frederick. Members of the Board introduced themselves and shared their background and time on the Board.
Denis Rice presented the Plan and Association financial statements for the 3rd fiscal quarter ended March 31, 2022. This discussion reviewed the balance sheets, income statements, budget versus actual, and the Association’s general ledger.
Family and Medical Leave Insurance (FAMLI) discussion and Resolution:
Tim Mullen noted the State of Colorado has introduced a State-run, family paid, medical leave insurance program. Participation in the FAMLI program is mandatory for private employers, however local government employers may choose to opt out, with approval from the Board.
The program provides workers up to 12 weeks of paid leave (up to $1,100 per week) to take care of themselves or a family member during various events. Employers and their employees are both responsible for funding the program and may split the cost 50/50. If the employer opts out, an employee can still opt into FAMLI if they choose. The start date for the program is January 1, 2023, with benefits available and payable after January 1, 2024.
Ed Krisor noted that most governmental entities are opting out of this program as detailed information and specific directions are unavailable at this time. If an entity joins the program, they would be committed to remain in the program for three years. Ed Krisor and Tim Mullen recommended CRA opt-out of the FAMLI program for now until more information becomes available.
A motion was made by Board Chair Chris Felton to adopt Resolution No. 2, Series of 2022 (Declining Participation in the FAMLI Program). Tobe Allumbaugh seconded the motion and it passed unanimously.
Chris Felton congratulated Paul Danley on his upcoming retirement and expressed the appreciation of the Board for his past four years of service. Paul told the Board he was honored to have served on the Board. Mr. Danley was presented with an award for his service.
CRA Activity Updates:
Tim Mullen noted the CCI conference was the week of May 31st and the CML conference will begin Tuesday, June 21,2022. CRA recently responded to a Request for Proposal (RFP) to provide retirement services for the Town of Lyons. The Town notified CRA that it had been selected to provide retirement services to the Town. It is expected, with Board approval, that the Town of Lyons will join the Association and retirement benefits should start within the next few months.
Matt Evans gave a brief overview of the upcoming CRA marketing campaigns. He also noted several options for campaigns over the next several quarters.
Chris Felton asked the members of the Board if there were any questions or concerns regarding the expense reports. There being none, the reports were accepted as presented.
The next meeting of the CRA Board of Directors will be held on Friday, August 19, 2022.
Chris Felton asked if anyone had any additional questions or items to discuss. There being no further business to come before the Board, Mr. Felton adjourned the meeting at 10:00 a.m.