New Orleans Municipal Employees' Retirement System public meetings in 2022
12 substantive meetings from 2022, with official agendas or minutes and plain-English summaries.
Board of Trustees
The Board of Trustees decided to grant a one-time bonus cost of living adjustment to eligible retirees and beneficiaries. The board also reviewed investment performance and discussed funding for an infrastructure fund.
- Approved $500 one-time bonus COLA for retirees and beneficiaries with a retirement date of December 31, 2022 or prior
- Noted $2 million allocation from City Council for 2023 and 2024 COLAs
- Discussed $36 million commitment to KKR Diversified Core Infrastructure Fund
- Reviewed 2023 operating needs estimated at roughly $18.2 million
- Approved retirement allowances for December
The Board of Trustees approved a one-time bonus cost of living adjustment (COLA) of $500 for retirees and beneficiaries with a retirement date of December 31, 2022, or prior. The board also approved the November 16, 2022, meeting minutes and December retirement allowances. Proposed revisions to the Investment Policy Statement regarding liquidity and rebalancing were not adopted.
- Approved one-time bonus COLA of $500 for retirees and beneficiaries dated Dec 31, 2022 or prior (4-0)
- Approved November 16, 2022 regular meeting minutes (3-0)
- Approved retirement allowances for December (3-0)
- Declined adoption of suggested revisions to Investment Policy Statement liquidity and rebalancing language
Board of Trustees
The Board of Trustees reviewed market performance and discussed rebalancing methodologies for liquidity. Members also addressed a $36 million commitment to the KKR Diversified Core Infrastructure Fund and upcoming implementation of cost-of-living adjustments.
- $36 million commitment to KKR Diversified Core Infrastructure Fund
- Approval of November retirement allowances
- Discussion of City Council passed ordinance regarding cost-of-living adjustments (COLAs)
- Review of Blackrock investment following state decision on divestment
The Board of Trustees approved the retirement allowances for November and the minutes from the October 19, 2022 meeting. The board also discussed investment liquidity and a City Council ordinance regarding cost-of-living adjustments.
- Approved October 19, 2022 regular meeting minutes (3-0)
- Approved retirement allowances for November (3-0)
Board of Trustees
The Board of Trustees reviewed investment performance and discussed funding for the KKR Diversified Core Infrastructure Fund. Members discussed a proposed ordinance to change funding requirements for cost of living adjustments (COLAs). The board also noted the state treasurer's move away from Blackrock investments.
- Decision to use Millennium liquidity for operating needs
- Discussion of $36M commitment to KKR Diversified Core Infrastructure Fund
- Approval of retirement allowances for October
- Discussion of $15M invested with Blackrock
- Proposed ordinance to reduce funding requirements for COLAs
The Board of Trustees approved the retirement allowances for October and the minutes from the September 21, 2022 meeting. The board also decided to use liquidity from Millennium for operating needs. Discussions were held regarding cost of living adjustments (COLAs) and investments with Blackrock.
- Approved September 21, 2022 regular meeting minutes (3-0)
- Approved retirement allowances for October (3-0)
- Decided to use Millennium liquidity for operating needs
- Agreed to review asset allocation and potentially adopt targets at the next meeting
Board of Trustees
The Board of Trustees discussed funding a $36M commitment to the KKR Diversified Core Infrastructure Fund. The board also reviewed Cost of Living Adjustment (COLA) history and potential future increases.
- Approved $4M redemption from Corbin Opportunity Fund
- Approved $4M redemption from Intercontinental U.S. Real Estate Investment Fund
- Approved $4M redemption from Principal Enhanced Property Fund
- Discussed potential one-time bonus COLA if funding requirements are met
- Agreed to recommend removing the $150,000 cap on pensionable compensation
The Board approved redeeming $4M each from the Corbin Opportunity Fund, Intercontinental U.S. Real Estate Investment Fund, and Principal Enhanced Property Fund to support a $36M KKR commitment. Trustees agreed to utilize the IRS cap instead of the $150,000 cap on pensionable compensation. The Board determined the fund cannot currently grant a COLA without city funding.
- Approved $4M redemption from Corbin Opportunity Fund (3-0)
- Approved $4M redemption from Intercontinental U.S. Real Estate Investment Fund (3-0)
- Approved $4M redemption from Principal Enhanced Property Fund (3-0)
- Agreed to utilize IRS cap for pensionable compensation instead of $150,000 cap
- Approved August 17, 2022 meeting minutes (3-0)
- Approved retirement allowances for August (3-0)
Board of Trustees
The board approved an interim asset allocation adjustment to decrease core plus fixed income from 15% to 12% and establish a new global infrastructure allocation at 3%, to fund a $36 million commitment to the KKR Diversified Core Infrastructure Fund. Trustees also ratified retirement allowances for August, approved meeting minutes, and discussed cost-of-living adjustments (COLAs) for retirees, noting a city ordinance requires the plan to be 95% funded before COLAs can be granted (current funded rate: 59% actuarial, 65% market value). The board authorized attendance at two upcoming conferences.
- Approved interim asset allocation: decrease core plus fixed income from 15% to 12%, establish global infrastructure at 3% to fund $36M KKR commitment
- Ratified retirement allowances for August 2022
- Actuary reported plan assets: actuarial value $452.4M, market value $510M; market return 15.77% vs. assumed 7.25%
- Discussed COLA for retirees; last monthly COLA was 2% in 2008, last one-time COLA in 2015 ($50-$580); city ordinance requires 95% funding
- Authorized board attendance at IFEBP conference (Las Vegas, Oct 23-26) and LAPERS conference (New Orleans, Sept 18-20)
The Board of Trustees approved an interim shift in asset allocation to establish a new global infrastructure allocation. The board also approved retirement allowances for August and authorized attendance at two professional conferences. Discussions were held regarding the 2017 city ordinance requiring a 95% funding rate before cost-of-living adjustments (COLAs) can be granted.
- Approved interim asset allocation adjustment to decrease core plus fixed income from 15% to 12% and establish new global infrastructure allocation at 3% (3-0)
- Approved retirement allowances for August (3-0)
- Approved July 20, 2022 regular meeting minutes (3-0)
- Approved attendance for Ms. Bagneris and Ms. Kahn at the International Foundation of Employee Benefit Plans conference (3-0)
- Approved registration for the entire board at the LAPERS annual conference (3-0)
Board of Trustees
The Board of Trustees approved the 2023 contribution rates and adopted a new amortization method for market investment gains and losses. The board also decided to cancel a request for proposals for an international equity manager.
- Approved 6% employee and 17.18% employer contribution rates for 2023
- Accepted Segal recommendation for 5-year straight line amortization with a 20% corridor
- Canceled the RFP for an international equity manager
- Approved retirement allowances for July
- Reported market value of assets increased from $460M to $510M
The Board of Trustees approved the 2023 contribution rates for employees and employers. The board also adopted a new amortization method for market investment gains and losses and cancelled a request for proposal for an international equity manager.
- Approved 6% employee contribution rate for 2023 (4-0)
- Approved 17.18% employer contribution rate for 2023 (4-0)
- Approved transition to 5-year straight line amortization of market investment gain or loss and 20% corridor (4-0)
- Cancelled RFP for an international equity manager (4-0)
- Approved June 11, 2022 meeting minutes (4-0)
- Approved retirement allowances for July (4-0)
Board of Trustees
The Board of Trustees reviewed the market environment and investment performance as of April 30, 2022. Members discussed the status of an international equity Request for Proposal (RFP) and the challenges of making tactical private investments under public RFP requirements.
- Approved retirement allowances for June
- Agreed to invite First Eagle to the July meeting regarding the international equity RFP
- Approved Treasurer/CFO Norman L. White's attendance at the NASP annual conference in Chicago
- Discussed House Resolution 137 regarding diversity, equity and inclusion investments
- Noted that the 2023 contribution rate will be reviewed during the July meeting
The Board of Trustees approved the retirement allowances for June and the minutes from the May 11, 2022 meeting. The board also authorized the Treasurer/CFO to attend a professional conference in Chicago. Discussions were held regarding an international equity manager RFP and legislative updates, but no actions were taken on those items.
- Approved May 11, 2022 regular meeting minutes (4-0)
- Approved retirement allowances for June (4-0)
- Approved Treasurer/CFO attendance at NASP annual conference in Chicago (3-0)
Board of Trustees
The Board of Trustees reviewed market performance as of March 31, 2022, noting that most active equity managers trailed their benchmarks. The board discussed the status of the International Equity Manager Request For Proposal (RFP) and aims to make a final decision by the end of the second quarter.
- Approval of April 20, 2022, meeting minutes
- Review of March 31, 2022, market performance report
- Discussion on terminating the International Equity Manager RFP if no action is taken by end of Q2
- Discussion of House Bill 25 regarding energy-related investment prohibitions
- Discussion of failed House Bill 213 regarding beneficiary removal after divorce
The Board of Trustees approved the minutes from the April 20, 2022 meeting. Trustees reviewed market performance as of March 31, 2022, and discussed the status of an international equity manager RFP. No final decision was made on the RFP, though the board indicated a decision or termination of the process would occur by the end of the second quarter.
- Approved April 20, 2022 regular meeting minutes (unanimous)
Board of Trustees
The Board of Trustees decided to trim several investment funds to raise $12 million for 2022 payments. The board also reviewed market performance and the status of an international equity manager request for proposal.
- Approved raising $12 million by reducing holdings in Vanguard 500 Index, Cornerstone, Vanguard Growth Fund, Wedge Capital, Invesco, and Wasatch
- Ratified retirement allowances for April
- Approved attendance for Ms. Kahn and Mr. White at the NCPERS conference in Washington, D.C.
- Reported $15 million (3.3%) total portfolio exposure to fossil fuel and related companies
- Discussed House Bill 25 regarding energy company investments and House Bill 213 regarding beneficiary removal upon divorce
The Board of Trustees approved a plan to raise $12 million in cash by trimming several investment funds to cover 2022 benefit and operating costs. The board also approved retirement allowances for April and authorized two trustees to attend a national conference.
- Approved raising $12M for 2022 funding by reducing Vanguard 500 Index (~$4.5M), Cornerstone (~$3M), Vanguard Growth Fund (~$1.1M), Invesco (~$1.9M), Wasatch (~$1.2M), and Wedge Capital (~$500,000) (4-0)
- Approved retirement allowances for April (4-0)
- Approved attendance of Ms. Kahn and Mr. White at the NCPERS conference in Washington, D.C. (4-0)
- Approved March 19, 2022 regular meeting minutes (4-0)
- Denied motion to allow only Ms. Kahn to attend the NCPERS conference
Board of Trustees
The Board of Trustees met to approve retirement allowances for March and review the January 31, 2022 performance report. The board also received a presentation from Palisades Investment Partners and Bivium Capital Partners.
- Approval of retirement allowances for March
- Review of January 31, 2022 Performance Report
- Report of 73 manager responses to the International Equity Manager Search RFP
- Discussion of portfolio exposure to Russia and Ukraine
- Notice of upcoming actuary RFP selection process
The Board of Trustees approved the retirement allowances for March and the minutes from the February 16, 2022 meeting. Trustees received reports on refunds, contributions, transfers, and deceased members.
- Approved February 16, 2022 regular meeting minutes (3-0)
- Approved retirement allowances for March (3-0)
Board of Trustees
The board approved a 0.39% interest rate for 2021 member balances and received routine reports. They also reviewed investment performance, an international equity manager search with over 60 respondents, and an infrastructure manager queue. No public comments were made.
- Approved member interest rate of 0.39% for 2021 balances
- Reviewed year-to-date market environment and December 31, 2021 performance report
- International equity manager search RFP received over 60 responses, due March 4th
- Infrastructure manager capital calls expected within 6-9 months from KKR and JP Morgan
- Palisades emerging manager invited to present at next meeting
The Board of Trustees approved the member interest rate for 2021 balances and the minutes from the January 19, 2022 meeting. The board also received reports on refunds, contributions, transfers, and deceased members.
- Approved 0.39% member interest rate for 2021 member balances (3-0)
- Approved January 19, 2022 regular meeting minutes (3-0)
Board of Trustees
The Board of Trustees reviewed portfolio performance through November 30, 2021, and discussed funding for infrastructure manager allocations. The board also processed December retirement allowances and noted the upcoming resignation of Chairman Dr. Edgar L. Chase, III.
- Approved RFP and scope of work for international equity manager search
- Approved retirement allowances for the month of December
- Proposed funding infrastructure manager allocations using assets from core plus fixed income
- Resignation of Chairman Dr. Edgar L. Chase, III effective January 31, 2022
- Delayed actuary selection committee meeting until a new board member is selected
The Board of Trustees approved the request for proposals (RFP) to search for an international equity manager. The board also ratified retirement allowances for December and approved the previous meeting's minutes. Chairman Dr. Edgar L. Chase, III submitted his resignation effective January 31, 2022.
- Approved RFP for international equity manager search (3-0)
- Approved December retirement allowances (3-0)
- Approved December 15, 2021 meeting minutes (3-0)
- Delayed actuary selection committee meeting until a new board member is selected