New Orleans Municipal Employees' Retirement System public meetings in 2020
12 substantive meetings from 2020, with official agendas or minutes and plain-English summaries.
Board of Trustees
The Board of Trustees approved hiring Attucks Asset Management and Legato Capital Management for the pension fund, with specific investment amounts to be determined later. The board also ratified retirements for December and reviewed the fund's estimated $417 million balance as of November 30.
- Hired Attucks Asset Management (Small Cap Core) and Legato Capital Management (Small Cap Core and International Small Cap Commingled)
- Fund estimated at $417 million as of November 30
- Approved December retirements
- Discussed rebalancing at a future meeting
- No public comments received
The Board of Trustees hired two investment managers, Attucks Asset Management and Legato Capital Management, though the specific funding amounts for each were not yet determined. The Board also approved the October 21, 2020 meeting minutes and December retirements.
- Hired Attucks Asset Management and Legato Capital Management (5-0)
- Approved October 21, 2020 meeting minutes (4-0)
- Approved retirements for the month of December (4-0)
Investment Committee Meeting
The Investment Committee of the New Orleans Employees' Retirement System heard presentations from four investment firms (Attucks Asset Management, Bivium Capital Partners, GCM Grosvenor, and Legato Capital Management) regarding small cap core, international small cap, and private equity strategies. No decision was made; the board will select a manager at its December 16 regular meeting.
- Attucks Asset Management presented a small cap core strategy with three separate accounts
- Bivium Capital Partners presented a small cap core strategy with three separate accounts
- GCM Grosvenor presented a private equity limited partnership strategy and Advanced Fund
- Legato Capital Management presented small cap core commingled and international small cap commingled strategies
- Manager selection and asset allocation to be decided at the December 16 regular board meeting
The committee heard investment strategy presentations from Attucks Asset Management, Bivium Capital Partners, GCM Grosvenor, and Legato Capital Management. No manager was selected during this meeting; the board will hold further discussions and select a manager at the December 16 meeting.
- Tabled selection of emerging manager to December 16 meeting
- Approved motion to adjourn (5-0)
Board of Trustees
The board approved interviewing four investment managers (Attucks, BIVIUM, Legato, Grosvenor) for the pension portfolio, reviewed market conditions and the manager-of-managers structure, and discussed the retirement incentive plan. No votes on retirements or financial contracts were taken.
- Board approved interviewing four investment managers: Attucks, BIVIUM, Legato, and Grosvenor
- Investment consultant reviewed manager performance and market environment
- Discussed potential rebalancing options based on market conditions
- Retirement incentive plan update provided; virtual conferences expected to continue
- No public comments received
The Board of Trustees approved the October 2020 meeting minutes and November retirements. The Board agreed to give the manager of managers discretion to hire and terminate managers and identified four firms for upcoming interviews.
- Approved October 21, 2020 meeting minutes (4-0)
- Approved retirements for the month of November (4-0)
- Decided manager of managers shall have discretion to hire and terminate managers
- Selected Attucks, BIVIUM, Legato, and Grosvenor for interviews on December 9
Board of Trustees
The Member Relations Committee reviewed a retirement incentive plan and associated plan changes. Director Jesse Evans, Jr. presented the details and noted a December 1, 2020, application deadline for members. The committee also answered questions from the public.
- Review of retirement incentive plan and plan changes
- December 1, 2020 application deadline for retirement incentive plan
- Approval of October 28, 2020 meeting minutes
The Committee approved the minutes from the October 28, 2020 meeting. Members and the Director presented an overview of the retirement incentive plan and plan changes, noting a December 1, 2020 application deadline.
- Approved October 28, 2020 meeting minutes (unanimous)
Board of Trustees
The Board of Trustees reviewed monthly reports including member refunds, transfers, and deceased members. The board also discussed how 2010 furlough periods might impact future pension calculations and reviewed the performance of various equity and fixed income managers.
- Approval of October retirements and work-hour eligibility restrictions
- Discussion regarding ordinance 114-126 (D) and pension calculation impacts from 2010 furloughs
- Review of Vanguard index fund fees compared to Fidelity index fund expense ratios
- Report on the retirement office's participation in city-wide one-day furloughs per pay period
The Board of Trustees approved the retirements for October and the minutes from the September 15, 2020 meeting. The board also reviewed investment performance and the impact of city-mandated furloughs on staffing.
- Approved September 15, 2020 meeting minutes (5-0)
- Approved October retirements and work-limit ineligibility for returning members (5-0)
Board of Trustees
The Board of Trustees met to review investment performance and approve retirement ratifications. The Board decided to reinvest $1 million into a new Millennium share class and increase the total Millennium allocation toward $10 million.
- Cornerstone offered to reduce their fee to 0.25% due to performance relative to the S&P 500
- Approved reinvestment of $1 million in Millennium's new 5% quarterly liquidity share class
- Approved increasing total Millennium allocation toward a $10 million target
- Ratified September retirements
- Update on Manager of Emerging Managers RFP with nine intended respondents
The Board of Trustees approved the reinvestment of estimated liquidity into a new Millennium share class and increased the total allocation to $10 million. The Board also ratified September retirements and approved the previous month's meeting minutes.
- Approved August 15, 2020 meeting minutes (5-0)
- Approved retirements for the month of September (5-0)
- Approved reinvesting $1 million of estimated liquidity in new 5% quarterly liquidity share class and increasing Millennium allocation to $10 million (5-0)
Board of Trustees
The Board of Trustees approved the employer contribution rate of 15.31% for 2021 and reviewed the annual actuarial valuation. They also approved raising $10 million from equity managers and edits to a manager-of-emerging-managers RFP. Several committee reports were received with no new updates.
- Approved employer contribution rate of 15.31% for 2021
- Approved raising $10 million from equity managers: $2M Vanguard Growth Index, $2M Cornerstone, $2M Vanguard Institutional Index, $1.5M First Eagle, $1M Vanguard Total International Stock, $1M Invesco, $500,000 Wasatch
- Approved edits to the manager-of-emerging-managers RFP and authorized posting
- Approved retirements for August 2020
- Approved attendance at NCEPERS Virtual Public Pension Funding Forum for multiple trustees and staff
The Board of Trustees approved the 2021 employer contribution rate and authorized raising $10 million from specific equity managers. The board also approved edits to the manager of emerging managers RFP and authorized attendance at a public pension funding forum.
- Approved 15.31% employer contribution rate for 2021 (unanimous)
- Approved raising $10 million from equity managers including Vanguard, Cornerstone, First Eagle, Invesco, and Wasatch (unanimous)
- Approved edits to the manager of emerging managers RFP and authorized posting (unanimous)
- Approved August retirements (3-0)
- Approved July 15, 2020 meeting minutes (3-0)
- Approved attendance of Ms. Bagneris, Mr. White, and Mr. Evans at NCEPERS Virtual Public Pension Funding Forum (unanimous)
- Approved attendance of Ms. Hudson at NCEPERS Virtual Public Pension Funding Forum (unanimous)
Board of Trustees
The Board of Trustees discussed investment portfolio performance and the upcoming RFP for an emerging manager of managers. Members also reviewed the impact of the COVID-19 pandemic on the market and potential staffing demands related to retirement incentive plans.
- Approved one-year contract extension for Segal Consulting
- Discussion of a new private equity fund offering by Mesirow
- Review of investment portfolio performance through May 31
- Swearing-in of Ms. Bagneris for a new term as trustee
The Board of Trustees approved the June 10, 2020 meeting minutes and a one-year contract extension for Segal Consulting. The board also discussed investment market performance and the upcoming RFP for an emerging manager of managers.
- Approved June 10, 2020 meeting minutes (3-0)
- Approved one-year contract extension for Segal Consulting (4-0)
- Sworn in Ms. Bagneris for a new term as trustee
Board of Trustees
The Board of Trustees adopted new plan assumptions and amortization methodologies for the retirement system. The Board also voted to move proposed plan changes, including a 'Rule of 70' early retirement option and a voluntary retirement incentive, to the City Council for further consideration.
- Adoption of new plan assumptions including a 7.25% discount rate/investment return
- Proposal of 'Rule of 70' early retirement option requiring at least 15 years of service
- Proposal of Voluntary Retirement Option with a 1% annual benefit increase starting January 1, 2022
- Request for an extension to the June 30 deadline for the 2019 Annual Audit
- Proposed pensionable compensation cap of $150,000
The Board of Trustees adopted new plan assumptions and amortization methodologies for the retirement system. They also voted to move proposed plan changes, including a 'Rule of 70' early retirement option and a voluntary retirement option, to the City Council for further consideration.
- Approved February 13, 2020 meeting minutes (5-0)
- Approved March 11, 2020 special meeting minutes (5-0)
- Adopted new plan assumptions and amortization methodology (5-0)
- Moved proposed plan changes to City Council for consideration (5-0)
- Moved amended Early Retirement 'Rule of 70' to City Council (5-0)
- Moved amended Voluntary Retirement Option to City Council (5-0)
- Approved moving all proposed plan changes as a single package to City Council (5-0)
- Requested extension for 2019 Annual Audit deadline
Board of Trustees
The Board of Trustees met for a special session to review a disability application. The board voted to approve the application for Leah Chambers.
- Approval of disability application for Leah Chambers
The Board of Trustees held a special meeting to review a specific disability application. During the session, the board voted to approve the application for Ms. Chambers.
- Approved disability application for Leah Chambers (3-0)
Board of Trustees
The Board of Trustees reviewed investment performance through December 31, 2019, and discussed amortization methodologies. The Board voted to hire The Connor Group to represent the retirement system in Government Sponsored Securities (GSE) Bond Litigation. Additionally, a motion passed to write-off an IIG investment.
- Hiring of The Connor Group for Government Sponsored Securities (GSE) Bond Litigation
- Write-off of the IIG investment
- Actuarial presentation on amortization methodologies and plan changes by Segal Consulting
- Review of investment performance through December 31, 2019, by AndCo Consulting
- Ratification of retirements for December 2019, January 2020, and February 2020
The Board of Trustees approved the hiring of The Connor Group for securities litigation and wrote off an IIG investment. The board also ratified retirements for December 2019 through February 2020 and approved previous meeting minutes.
- Approved minutes from November 20, 2019 and January 15, 2020 (3-0)
- Ratified retirements for December 2019, January 2020, and February 2020 (3-0)
- Approved write-off of IIG investment with potential for recovery (4-0)
- Added The Connor Group to the list of securities litigation firms (3-0)
- Hired The Connor Group for Government Sponsored Securities (GSE) Bond Litigation (3-0)
Board of Trustees
The Board of Trustees discussed fund performance through November 30, 2019, which exceeded $400M. Members received a presentation on securities litigation from Labaton Sucharow and discussed the impact of a December 13 cyber attack on city government.
- Investment performance review for fund exceeding $400M
- Disability contract with Ochsner Foundation ready for signature
- Presentation by Labaton Sucharow on securities litigation
- Hiring of a Junior Accountant
- Discussion of December 13 cyber attack on city government
The Board of Trustees reviewed investment performance through November 30, 2019, and received a presentation on securities litigation. The meeting was adjourned early after losing a quorum, resulting in the deferral of the Emerging Manager of Managers RFI review.
- Tabled Review Summary of Emerging Manager of Managers RFI Responses to a future meeting