| Advisory Committee Meeting Minutes 2004 |
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Oregon Savings Growth Plan
Advisory Committee Meeting Minutes
May 12, 2004
PERS HeadquartersBoardroom
Tigard, Oregon
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COMMITTEE MEMBERS PRESENT
Roman Martushev, Chair
Barry Kast, Vice Chair
William Robertson, Committee Member
Julie Kammer, Committee Member
rank Goulard, Committee Member
Kathleen Beaufait, Committee Member
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STATEFF MEMBERS PRESENT
Gay Lynn Bath, Manager
Marsha Bacon, CSD Admin.
Denise Helms, Asst. to Manager
Kathy Peterson, OSGP Program Coord.
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Call to Order by Chair Martushev at 9:30 a.m. Chair Martushev asked for roll to be called.
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- APPROVAL OF MINUTES Chair Martushev asked for any changes to the minutes from the February 11, 2004, meeting as presented. The board approved the minutes by unanimous voice vote.
- OLD BUSINESS:
- Service Contract Renewal: Marsha Bacon gave an update on the contract status.Staff was asked questions in regard to providing one-on-one counseling services, and was instructed to ask questions from Department of Justice in regards to these types of services.At this time, OSGP does not have written reply yet, however it will as soon as a decision is made.Based on that, staff will provide the board and copy the Advisory Committee on the material.Bacon stated the current contract has been extended to the end of June.The enhanced services that the Advisory Committee had recommended are to go before the board at the June 4th meeting.Gay Lynn Bath will send e-mails to keep the board advised.
- Investment Reports: Kevin Nordhill addressed each investment option highlighting the last quarter progress. Kim McCarrel from INVESCO explained the stable value portfolio. Greg Forte from Citistreet went over transaction fees.
- Market Timing: Bath gave an overview of OSGP’s current trading policy and recent activities with market timers in the plan. Bath explained OSGP would keep the current policy in place; currently anyone who makes more than two trades in the International Option per month in a three-month period will be flagged and monitored going forward. They will be limited to one trade per month in the International Option.Citistreet will speak with the participants who are doing large dollar trading on an individual basis.Waiting for the SEC to implement redemption fees.Nordhill noted that Treasury is also waiting to see what the SEC decides.Bath explained the Advisory Committee would be notified with decisions.Robertson asked where the current policy was available to read.Bacon stated it was generally stated in the Plan Update.Kathy Peterson stated that it was in our proposed admin rules, waiting for approval.
- ADMINISTRATIVE REPORT:
- Performance Results: Bath shared the most recent results.
- Asset Report: Bath shared the most recent results.
- Service Review: Greg Forte from Citistreet provided us with statistics for the last quarter.Forte stated the call volume for the last quarter was extensive.The use of the website has steadily increased; 44 percent of participants have accessed their account.In March 2004 there were more dollars rolled in to OSGP than rolled out, partially due to retirements, ceiling caps, and also catch-up provisions.Since 1996 the number of participants have doubled from 10,000 to 20,000 in 2004.Bacon stated there were over 12,000 retirements in 2003 and there is an estimated 8,000 for 2004.
- Local Government Report: Bath gave the Local Government report, reminding the Committee that OSGP is in the process of replacing Jon Pippert who resigned in April.Bath noted Jack Schafroth will be back filling the Local Government position until it is filled permanently.Interviews are scheduled for the week of May 17th.Bath reported since 2003 there are 17 new employers and 240 new employees.Bath noted that Schafroth suggested who ever carries on this position, should focus on the current employers enrolled so that we can reach the most amount of participants from each local government agency as possible.
- Newsletter: Bath commented on the fund grid that Springer had prepared in the last newsletter.Chair Martushev asked if staff had considered any Lifestyle allocations.Kast asked if enhanced services would take care of this.Bath reminded the Committee that enhanced services were on hold at this time due to the board’s decision.Bacon reminded the Committee that the plan does not provide advice for participant’s investments.Nordhill spoke regarding Lifestyle funds and explained they have not seen a lot of desire for these specific funds.Bacon asked if the Committee had future items for the Plan Update, please forward to Bath via e-mail or phone.
- 2004 Goals Update: Bath highlighted some of the 2004 goals.First is participation from higher education.There are 13, 000 eligible employees.Bath explained they are a challenge because there are other plans offered to them by the schools.Talked about the possibility of creating a special insert for the Perspectives Newsletter that would be sent exclusively to higher education employees.Second is increased participation from the miscellaneous agencies.Our goal was 812; we are currently at 344 as of March.Bath will provide a list of these goals at the next meeting.Third, increase rollover-in dollars to the plan.
- NEW BUSINESS:
- IAP/OPSRP Presentation: Bacon introduced David Tripp, presentation coordinator from the Tigard office.Tripp and his team do multiple presentations throughout the state keeping PERS members updated in a variety of ways.Including face-to-face, web casts and video conferencing.Last year almost 27,000 members received PERS education in various categories.Tripp gave the Committee handouts to follow through the overhead presentation.
- Proposed Changes To OSGP Procedures: Bacon noted that OSGP participants have inquired in regards to more flexibility with the plan, regarding catch-ups and unused dollars.Kathy Peterson, Program Coordinator, explained current limits and provisions on 50-plus catch up, alternate payee, max plus, 70 ½ RMD, and distribution withdrawal investment selection, giving examples and noting these changes would benefit the plan as well as provide excellent customer service to our members.Beaufait moved the Committee support these proposed changes. Goulard seconded the motion.The motion was carried by unanimous vote.
- Advisory Committee Membership Renewal: Bath addressed term limits for Chair Martushev and Vice Chair Kast.Their three-year terms are up as of June.They both indicated they are interested in continuing for another term.Bacon stated the Board must approve the Committee term.Because they both agreed to continue, Bacon will send a memo, and it will go on as an agenda item for the June board meeting.
- FUTURE AGENDA ITEMS:
- Next meeting:Wednesday August 11, 2004 in Salem
- Update rule changes
- Flexibility in distribution options
- ADJOURNMENT: There being no further business Chair Martushev adjourned the meeting.
Respectfully submitted,
Denise A Helms
Assistant to the Deferred Compensation Manager
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