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Fulton County Schools Employees’ Pension FundPension BoardMinutesFebruary 13, 2020The Fulton County Schools Employees' Pension Fund Pension Board ("Pension Board") met in regular monthly meeting on February 13, 2020 at 2:00pm at North Learning Center, 450 Northridge Parkway, Sandy Springs, GA 30350.Pension Board members present were: Mr. Marvin L. Dereef Jr., Mr. Robert (Sam) Ham, Mr. Ronnie Wade, Mr. Ferman Estrada, Mr. Stuart Berry, Mr. John Anderson & Dr. Looney via phone conference. Absent Pension Board members: NoneFormer Teacher or Employee Board Seat: VacantRobert (Sam) Ham served as Chair of the meeting. Mr. Marvin L. Dereef, Chief Financial Officer served as secretary of the meeting. Present ex officio: Ms. Greta Tinaglia, Executive Director of Accounting and Retirement Services.Also present were: Ms. Kathy Solley & Ms. Cheryl Shaw, Nelson Mullins Riley & Scarborough, LLP; Mr. Rierre Robinson, Retirement Coordinator; Ms. Fredrica Jones, Retirement Services Specialist; Mr. John Hagan, SEI Private Trust Company; Mr. Douglas Moses & Derek Foster, Mauldin & Jenkins; Mr. Todd Green, Cavanaugh Macdonald Consulting, LLC; Mr. Randy Stewart, Communications Manager; Ms. Rachel Hardy, Communications Specialist; Mr. Jevon Thompson, Tech Support. Call to OrderThe Chair called the meeting to order and, at his request, Mr. Stuart Berry led the Pledge of Allegiance.Action ItemsApproval of AgendaThe Chair noted that a copy of the Agenda had been provided to Pension Board members in advance of the meeting and was posted on the website. A motion to approve the Pension Board Agenda for the February 13, 2020 meeting was made by Mr. Ronnie Wade, seconded by Mr. Stuart Berry, and was unanimously approved.Approval of minutes of November 13, 2019 meetingThe Chair noted that the Pension Board members had been provided with a copy of the minutes of the November 13, 2019 meeting in advance of this meeting. He also noted that when minutes are approved, they will be available for public review on the Retirement Services website.A motion to approve the November 20, 2019 minutes was made by Mr. Ferman Estrada, seconded by Mr. John Anderson and unanimously approved. Approval of the proposed 2021 Pension Board Meeting Schedule The Chair presented to the meeting the 2021 Pension Board Meeting Schedule, a copy of which had been furnished to the members prior to the meeting, and noted that when the schedule has been approved, it will be available for public review on the Retirement Services website.A motion to approve the 2021 Pension Board Meeting Schedule was made by Mr. John Anderson, seconded by Mr. Stuart Berry and unanimously approved. ReportsPension Payroll ReportAt the request of the Chair, Mr. Rierre Robinson, Retirement Services Coordinator, presented the monthly pension payroll report for Payrolls November and December 2019, and January 2020. Treasurer’s Report At the request of the Chair, Ms. Greta Tinaglia, Executive Director of Accounting & Retirement Services, presented the Treasurer’s Report for the period ending December 31, 2019. Investment Performance ReviewAt the request of the Chair, Mr. John Hagan of SEI Investments presented the 4th Quarter 2019 Portfolio Review of Fulton County School Employees Pension Fund which included a report of the plan's investment performance for the period ending December 31, 2019. The plan assets through the end of the quarter were approximately $447,000,000 an increase of $22,000,000 from the previous quarter. The year-to-date return as of December 31, 2019 was 20%. Mr. Hagan drew attention to the annualized returns for the plan reflecting a three-year average of 9.5%, noting that the return brings the plan closer to the goal of being fully funded. Mr. Hagan also provided portfolio highlights reflecting equity as the driving force for 20% year-to-date return. Equities were up 9.3% for the quarter and 26% percent for the full year. Balancing out the portfolio is the fixed income which saw a 10% return year-to-date. Mr. Hagan provided SEI’s view of the market and economy, noting that the US economy is in good shape across all metrics and there is still some life remaining in the current economic expansion both in the the US and Global scale. Lastly, Mr. Hagan discussed the Plan’s asset allocation noting that the plan is achieving its goal of remaining within or 2% above or below the agreed upon target asset mix set by the Board and SEI, with the exception of the newly Board approved Core Property investment and Private equity that have a 5% range from the target because of liquidity. Mr. Hagan responded to all inquiries from Board members. d. Annual Financial ReportAt the request of the Chair, the 2019 auditor’s discussion and analysis report was presented by Douglas Moses, CPA, of Mauldin & Jenkins. A “clean” opinion was issued on the Pension Fund’s basic financial statements, which can be found in the 2019 annual audit report. There were no significant issues that may have affected the risk of material misstatement of the financial statements or warrant a finding or management responses.Actuarial Valuation At the request of the Chair, Mr. Todd Green, ASA, FCA, MAAA, President of Cavanaugh Macdonald Consulting, LLC presented the results of the June 30, 2019 actuarial valuation. The results of the valuation indicated an improved funded ratio of 85.8% for the fiscal year 2019 from the prior year’s 82.5%. The unfunded liability has decreased from $88.9 million to $71.6 million. The initial unfunded liability established in 1994 amortized over 30 years has five years remaining until it is fully paid, with projected achievement of a full funding level upon final payment. The plan will require an annual required contribution of $24 million during fiscal year 2021. The market value of the plan is $429 million as of the date of the valuation and has actuarial assets totaling $432 million as of the valuation date. Mr. Green responded to all questions raised by the Pension Board members and Greta Tinaglia, Executive Director of Accounting and Retirement Services. Mr. Moses, Mr. Foster, and Mr. Green exited the board room. Executive SessionA motion to adjourn to Executive Session to discuss investment securities and portfolios, personnel and other matters as permitted by law and to return to public session at the conclusion of the Executive Session was made by Mr. Ronnie Wade seconded by Mr. Ferman Estrada, and unanimously approved.The Pension Board adjourned to Executive Session at 2:42pm and returned to public session at 3:15pm.No actions items requiring Pension Board approval were presented during the Executive session. AdjournmentWith no further business, the meeting was adjourned at 3:17pm.Pension Board meeting schedule along with links to the Virtual Pension Board Meeting will be available on the Retirement Services Website. ____________________________________Rierre Robinson for Marvin L. Dereef Jr., Pension Board Secretary Exhibits to Minutes:December 31, 2019 Investment Performance ReviewDecember 31, 2019 Treasurer’s ReportPension Payroll Report (November, December, & January)Proposed 2021 Pension Board Meeting ScheduleJune 30, 2019 Annual Financial ReviewJune 30, 2019 Actuarial Valuation Review ................
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