HomeMy WebLinkAbout20223634.tiffMinutes
Weld County 401k Savings Plan and 457 Deferred
Compensation Plan Fiduciary Committee
October 27th, 2022
Meeting Attendees
Weld County
Cheryl Pattelli
Ryan Rose
Michelle Raimer (absent)
Staci Detteri-Frey
Karla Ford (absent)
Jill Scott
Renee Fielder
Alera Group
Brad Shaps
.Masoud Shirazi (absent)
Michael Shirazi (absent)
Bob Janson
Rebecca Noordhoek
Principal
Brian Curran
Prior Meeting Minutes
Jill made a motion to approve the minutes. Staci seconded the motion. The Committee
unanimously approved the minutes from the previous meeting.
Investment Review
Bob reviewed a Monitor Report that was prepared by Alera for quarter ending 9/30/22. As of
9/30/22 the 401(k) Plan and 457 Plan had assets of $13,761,195 and $7,869,513, respectively.
There are seven funds on the Watch or Replace List. Bob reviewed the Holdings Summary
section of the report and explained in detail the components of the Investment Performance
section of the report.
Cheryl stated that because of the update to the Target Date Fund suite, they would like to send
a communication to participants encouraging them to reevaluate which Target Date Fund they
are in to ensure it is appropriate.
2022-3634
Bob reviewed the criteria that has been established to monitor the Plan investments. He also
explained the process of replacing an investment fund when needed. Bob reviewed the
Holdings Summary section of the Monitor Report. Brad noted that best practice is to have one
fund in each category. There was a discussion had about eliminating duplicate funds in certain
categories to simplify the menu.
The Principal Blue Chip Institutional fund is on the watch list for one quarter due to
performance factors. It has failed the 1 -year and 3 -year returns criteria for two quarters while
also failing the Sharpe Ratio criteria for one quarter.
The Principal Large Cap Growth fund is on the watch list for three quarters due to performance
factors. It has failed the 1 -year return criteria for four quarters, the 3 -year return criteria for
four quarters, the 5 -year return criteria for three quarters and the Sharpe Ratio criteria for
three quarters. Bob noted that this fund is likely to be on the watch list next quarter. He
explained the various options the Committee had to replace the Principal Blue Chip fund and
the Principal Large Cap Growth fund and address the fact that there are two funds in the same
category. The committee discussed the alternatives. Jill made a motion to remove both funds
and replace them with the American Century Ultra R6 fund. Staci seconded the motion and it
passed unanimously.
The Principal Equity Income fund is on the watch list for two quarters due to performance
factors. It has failed the 1 -year return criteria for four quarters, the 3 -year return criteria for
three quarters, the 5 -year return criteria for two quarters and the Sharpe Ratio criteria for two
quarters. Bob noted the fund's failure in the style category and explained reasoning for this.
The committee discussed the potential replacements. Renee made a motion to replace this
fund with the Neuberger Berman large Cap Value fund. Jill seconded the motion and it passed
unanimously.
The Principal Mid Cap Institutional fund is on the watch list for one quarter due to performance
factors. Bob noted the fund's improvement in recent performance however pointed out that
this fund could be rolled into Principal Mid Cap Growth III Inst fund in order to eliminate
duplication in this category. Jill made a motion to approve this recommendation. Staci
seconded the motion and it passed unanimously.
Principal SAM Conservative Bal Inst fund is on the watch list for two quarters. It has failed the 1 -
year return criteria for two quarters, the 3 -year return criteria for two quarters and the 5 -year
return criteria for four quarters. Bob noted that this fund is part of a suite, therefore if the
Committee wanted to change this fund, they would have to replace the entire suite. The
Committee agreed that there is no action needed at this time.
Principal Plan Review
Brian reviewed a Retirement Plan Executive Summary that was prepared by Principal. Some of
the items reviewed were:
Average participation rate
Average account balance
Average deferral rate
Plan design features
Outstanding loans
Roth contribution elections
Cash flow summary
Fee Benchmark Report
Brad reviewed a fee benchmark report that was prepared by Alera. He noted that the
investment fees are below the average range of the data set, the recordkeeping fee is in line
with the low end of the data set, and the advisory fee is lower than the low end of the data set.
Employee Education
Principal will send a cyber security handout to include in the Weld Weekly. Alera will coordinate
with Principal to create a quarterly communication plan.
Next Meeting
Rebecca will coordinate dates for the next meeting with Cheryl.
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