8.5. SR 07-07-2014 - Laserfiche WebLink

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Investments Approximately ninety-seven percent of the Relief's assets are invested through The Parr McKnight Wealth Management Group, of Wells Fargo Advisors. The Parr McKnight Group specializes in working with relief associations to help them formulate an investment policy statement,manage and supervise their investments, receive on going trustee education and assist in the reporting process. They currently work with 65 relief associations in the State. The relief association has adopted an Investment Policy Statement for the investment for our pension fund. Our target investment allocation is sixty percent in stocks, thirty-five percent in bonds and five percent in cash. We rebalance to our target allocation annually. 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 3.75%increase for 2015 we are projecting a funding ratio over 110%. Action Requested Approve 3.75%benefit increase. This would change the yearly benefit level from $5167 to $5360. The Relief Association membership thanks the Council for its past and future support.