A meeting of the Governing Board of the Colorado Retirement Association was held on Friday, March 18, 2022, at 9:00 a.m.
The following were present at the meeting:
- Paul Danley, Vice Chairman-Participated by Zoom
- Adam Ford, Board Member
- Darius Allen, Board Member
- Jerry DiTullio, Board Member-Participated by Zoom
- Terri Schafer, Board Member-Participated by Zoom
- Tim Mullen, Executive Director
- Ed Krisor, Legal Counsel-Participated by Zoom
- Doug Farmen, Chief Financial Officer
- Mike Whalen, Retirement Plan Services Director
- Matt Evans, Retirement Services Coordinator
- Lois Kruse, Office Administrator
Chris Felton, Board Chairman and Tobe Allumbaugh, Board Member were not in attendance.
Paul Danley, Vice-Chairman called the meeting to order at 9:05 a.m.
Mr. Danley asked members of the Board if they reviewed the minutes from the February 18, 2022 meeting and if there were any comments. There being none, a motion was made by Paul Danley to approve the minutes as presented. Jerry DiTullio seconded the motion and it passed unanimously.
CRA Board Election Update:
Tim Mullen gave a brief overview of the three CRA Board of Directors positions that have terms expiring June 30, 2022. A current CRA Board member with an expiring term must declare if they are seeking an additional term by April 15, 2022. Included in the Board package is an excerpt from the Operating and Procedural Manual detailing election requirements and procedures. The nomination process will be during the month of May and the election will occur in June. Also included in the Board package were details of Board member responsibilities and commitments.
Financial Update:
Doug Farmen began his presentation noting March 10, year-to-date (YTD) fund performances ranged from a low of -16.69% (Harbor Capital Appreciation Inst’l Funds) to a high of .24% (CRA’s Book Value Fund). CRA’s Alternative Investments, available only within the Target Date Portfolios, struggled with performance as well with a low of -7.31% (DFA Emerging Markets Core Equity) and a high of 15.40% (Tortoise MLP & Pipeline Fund I). Comparatively, through March 10, 2022 the S&P was down by 11.24%.
As of February 28, 2022, the YTD blended rate of return for both the 401(a) and 457(b) plans was a negative 4.74%.
CRA plans’ loan rates remain the same at 4.25%. Total loan balances were lower than at the end of 2021. The total number of outstanding loans decreased, however average loan balances were higher for both the 401(a) and the 457(b) plans.
Self-Directed account balances were down 9.54% from December 2021.
Doug presented the Plan and Association financial statements for the 2nd fiscal quarter ended December 31, 2021. This discussion reviewed the balance sheets, income statements, budget versus actual, and the Association’s general ledger.
CRA Activity Updates:
CRA is accepting scholarship applications through Monday March 21st. To date, we have received 40 applications.
Mr. Mullen noted that employer and employee meetings are still a mix of in-person and virtual. The in-person meetings continue to be monitored for safety and CRA is adhering to pandemic protocols.
Participant Agreement reviews continue providing employers with the opportunity to expand their retirement options for employees. Plan over-contribution compliance reviews should be completed by April 15, 2022.
Tim also commented that participant wait times at the Empower call center are still lengthy with a high rate of abandonment. Matt Evans continues to enhance the functionality and accessibility of the website.
Expense Reports:
Paul Danley 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, April 22, 2022.
Paul Danley asked if anyone had any questions or additional items to discuss There being no further business to come before the Board, Paul Danley adjourned the meeting at 9:38 a.m.
