HomeMy WebLinkAbout20223630.tiffWELD COUNTY 401K SAVINGS PLAN AND 457 DEFERRED
COMPENSATION PLAN FIDUCIARY COMMITTEE
May 13, 2022
MEMBERS PRESENT:
Cheryl Pattelli, Chief Financial Office
Ryan Rose, Director of Administration
John Lefebvre, County Treasurer
Michelle Raimer, Interim Director of HR
Staci Datteri-Frey, HR Benefits Manager
OTHERS PRESENT:
Brad Shaps, Alera Group
Bob Janson, Alera Group
ABSENT:
Masoud Shirazi, Shirazi and Associates
Michael Shirazi, Shirazi and Associates
Karla Ford, BOCC Office Manger
CALL TO ORDER:
This meeting was held and recorded by Microsoft Teams. Mr. Shaps, Alera Group, called the
meeting to order at 11:00 a.m.
Alera emailed the Weld County 401k Monitor Report 22-03 Updated Criteria (Attachment A),
Weld County 457 Monitor Report 22-03 Updated Criteria (Attachment B), Weld County Monitor
Report 22-03 — Potential Changes Updated Criteria (Attachment C), Weld County Monitor
Report 22-03 — Target Date Funds Updated Criteria (Attachment D), and Weld County Targe
Date Compass Report (Attachment E) to the committee.
INVESTMENT REVIEW
Alera reviewed the Target Date Compass Report highlighting:
• The number and types of holdings in each of the target date suites illustrated.
• The glide path of each of the target date suite.
• The 3 -year and 5 -year risk return comparison.
After discussion, Mr. Lefebvre made a motion to change from Principal to American Funds. Ms.
Raimer seconded the motion and it passed unanimously.
In response to Mr. Lefebvre, Mr. Shaps stated they could do a record keeping search, along
with negotiate fees on behalf of the county. Mr. Janson stated it would take 90 days to get all
information transferred over and notice to employees — it would be a large project. Group did
want to review record keeping fees prior to making any decisions.
Mr. Janson reviewed the Monitor Report — Potential Changes report. Mr Janson pointed out
that the Principal Liquid Asset Fund is a money market fund and that it currently has a negative
total return after expenses. He suggested replacing it with the Principal Fixed Income
Guaranteed Option which has a current net yield of 2.78% with no market risk.
2022-3630
In response to Mr. Lefebvre's question, it was stated that stable value funds are not locked in for
six months. The participant dollars are liquid so only the interest rate is locked for six months. If
record keeper is changed, there could be some time before funds can be transferred.
Mr Janson pointed out that the Principal Short -Term Bond Fund is subject to market volatility
and recommended also replacing this fund with the Principal Fixed Income Guaranteed Options.
Mr Janson indicated that The Principal Guaranteed Account has a 12 month return of 1.36%.
Each deposit into the fund matures at the end of five years. Mr Janson suggested freezing this
new fund so no new deposits go into this fund. All future deposits will go into the Principal Fixed
Income Guaranteed Option. In addition, as investments in the fund mature after five years, they
will transfer to the Principal Guaranteed Account.
Mr. Lefebvre made a motion to remove Short -Term Bond and the Principal Liquid Asset Fund
and transfer funds to the Principal Fixed Income Guaranteed Options Fund, along with freezing
the 5 -year Guaranteed Account and not add any additional funding. Ms. Datteri-Frey seconded
the motion and it passed unanimously.
The Principal Government and High Quality Bond Fund is on the watch list for two quarters and
has failed the 3 -year and 5 -year return criteria for nine straight quarters. Alera presented
alternatives. After a discussion, Mr. Lefebvre made a motion to replace the Principal
Government & High Quality Bond Fund with the American Funds US Government Fund. Ms.
Datteri-Frey seconded the motion and it passed unanimously.
The Principal Small Cap Growth Fund has failed the 1 -year return criteria five of the last seven
quarters, the 3 -year return criteria three of the last five quarters and the 5 -year return criteria for
12 straight quarters. Alera presented three potential replacements.
After discussion, Mr. Lefebvre made a motion to replace the Principal Small Cap Growth Fund
with the Putnam Small Cap Growth Fund. Ms. Datteri-Frey seconded the motion and it passed
unanimously.
NEXT MEETING DATE:
The next meeting date is June 23, 2022 at 9:30 a.m.
ADJOURN:
The meeting ended at 12:01 p.m.
2022.
The above and foregoing minutes were presented for approval on the 11th day of July,
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