8.3. SR 07-15-2013 - Laserfiche WebLink

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Investments Approximately ninety-seven percent of the Reliefs assets have been transferred over to the Parr McKnight Wealth Management Group. The Parr McKnight Group manages the funds for over fifty relief associations in the State and has a consistent record of beating the State Board of Investment. Our funds are allocated similar to the State Board of Investment Income Share fund which invests sixty percent in stocks, thirty-five percent in bonds and five percent in cash. The Relief Board believes in long term investing and has resisted attempting to time market moves. Funding Ratios The ERFD relief Board believes that it has fiduciary responsibilities to both the membership and to the Council. The responsibility to the membership is to seek the highest financially sound benefit level. The responsibility to the Council is to not expose the city to any financial risk which could lead to mandatory contributions. Historically after the State and City contributions our investments only needed returns of 2-3% to cover normal costs and stay one hundred percent funded. Even with a 1.5%increase for 2014 we are projecting a funding ratio over 100% assuming a 5% annual return on investments. Action Requested Approve 1.5%benefit increase. This would change the yearly benefit level from$5091 to $5167. The Relief Association membership thanks the Council for its past and future support.