A meeting of the Governing Board of the Colorado Retirement Association was held on March 17, 2023 at 9:00 a.m.
The following were present at the meeting:
- Adam Ford, Vice Chairperson – Participated by Zoom
- Darius Allen, Board Member – Participated 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
- Matt Evans, Retirement Services Coordinator
- Lois Kruse, Office Administrator
The following were not in attendance:
- Chris Felton, Board Chairperson
- Tobe Allumbaugh, Board Member
- Meghan Martinez, Board Member
Adam Ford, Board Vice-Chairperson, called the meeting to order at 9:01 a.m.
Adam Ford asked members of the Board if they reviewed the minutes from the February 17, 2023 meeting and if there were any comments. There being none, a motion was made by Jerry DiTullio to approve the minutes as presented. Darius Allen seconded the motion and it passed unanimously.
Mr. Rice presented the Plan and Association financial statements for the 2nd fiscal quarter ended December 31, 2022. This presentation reviewed balance sheets, income statements, budget versus actual, and the Association’s general ledger.
Next in the presentation was selected financial data through February 28th and March 10th 2023. As of March 10, 2023, year-to-date (YTD) fund performance ranged from a low of -1.66% (Dodge & Cox Stock Fund) to a high of 8.39% (American Beacon International Equity).
CRA’s Alternative Investments, available only within the Target Date Portfolios, ranged from a high of 2.46% (Mainstay Floating Rate Fund Class I) to a low of -1.39% (Blackrock Strategic Income Opportunities I).
As of February 28, 2023 the YTD blended rate of return for CRA’s 401(a) and 457(b) plans is 3.55%
Effective March 1st 2023, plan loans rates are at 8.75%. Loan balances are down approximately 1.8% since year-end.
Schwab balances are 1.51% lower from December 2, 2022 balances and represent 1.72% of total assets as of March 10, 2023.
Through February 2023, YTD Plan distributions exceed Plan contributions by approximately $7 million. This trend is consistent and not unexpected, given the large number of retirees choosing to keep assets in the CRA Plans.
CRA Activity Updates:
Mr. Mullen noted CRA will be attending the Colorado City & County Management Association Annual Conference at the end of April in Glenwood Springs.
Matt Evans gave a brief overview of five daily e-mails sent to participants during America Saves Week, February 27th through March 3rd 2023. Approximately 18-19 thousand emails were sent daily, with an open rate of one-third. The click to open rate was up to 3% with several hundred taking further action within the email offerings.
Innovest and CRA management met with Voya Financial and Empower on February 28, 2023 as part of our ongoing RFP process for record-keeping services. CRA will continue to evaluate the record-keeper’s capabilities, available plan services and other plan and operational options. Due diligence will continue for the next several months.
CRA management has continued to address Secure Act 2.0 legislation, participating in various seminars and classes on the subject. Guidance from the I.R.S and other regulatory agencies on best practices is evolving. Various optional provisions of the Act will have to wait until further guidance has been provided.
CRA has implemented the provisions changing the RMD age to age 73, along with eliminating the first of the month rule for 457 deferrals.
Mr. Mullen shared correspondence from Innovest, CRA’s investment advisor, discussing the recent bank failures. CRA has not been directly impacted by these events.
Mike Whalen, Retirement Plan Services Director, updated the Board on Client Service activity for 2022 utilizing the newly designed Participant Service Event and Employer Service Event tracking systems in Salesforce.
The primary categories discussed were employer/participant; events and meetings; service events; and a deeper dive into the specifics of service events.
Matt Evans provided the Board information on participant engagement with their retirement plan via website and mobile application access. Website and mobile utilization is 68% and 26%, respectively. CRA’s PowerPoint presentation on Navigating the Participant Experience was also shown to the Board.
Mr. Ford 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 May 19, 2023.
There being no further business to come before the Board, Mr. Ford adjourned the meeting at 10:00 a.m.