►
Description
City of San José, California
Federated City Employees' Retirement Plan Board, February 16, 2023
This public meeting will be conducted via Zoom Webinar. For information on public participation via Zoom, please refer to the linked meeting agenda below.
Agenda: https://sjrs.legistar.com/View.ashx?M=A&ID=1078289&GUID=AD18081B-4CF3-426D-A063-FF13DF5D77DB
F
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A
A
E
E
First,
we're
going
to
start
with
a
refresher
of
the
five
fundamental
fiduciary
duties
which
are
set
in
the
california
constitution,
article
sixteen,,
section
seventeen
and
their
five
primary
five
primary
duties.
there's
the
primary
duty
of
loyalty,
which
is
the
duty
to
work
in
the
best
interests
of
the
members
and
beneficiaries
in
all
aspects
of
the
planning
ministration
to
the
exclusive
benefit
rule,
which
requires
the
board
to
use
the
assets
of
the
fund
for
two
distinct
purposes.
Only
one
is
to
pay
out
the
benefits.
One
do
and
two
is
to
pay
any
reasonable
administration.
E
E
We
have
the
duty
to
diversify
the
plan's
assets,
to
minimize
risks
and
maximize
returns.
and
lastly,.
We
have
the
duty
to
follow
the
plan
documents
that,
as
the
administrators
of
the
plan,
we
do
not
get
to
design
the
plan..
We
simply
must
administer
the
plan
based
on
the
terms
set
forth
in
the
san
jose
charter,
san
jose
municipal
code
and
our
irs.
E
E
And
we
call
it
the
primary
loyalty
rule
for
one
reason,
which
is
that
the
duty
of
loyalty
take
precedence
over
the
other
five
fiduciary
duties,
so
you
can
consider
it
a
primary
loyalty
rule
in
that
sense.
and,
as
I
mentioned
earlier,,
the
duty
of
loyalty
requires
you
to
act
in
the
best
interest
of
the
members
and
beneficiaries
and
not
to
promote
any
other
interests,
whether
personal
or
an
interest
of
other
special
interest
group
or
another
interest
for
the
general
public..
So
again,,
this
duty
of
loyalty
takes
precedence
over
all
other
duties.
next,.
E
The
other
duty
that
we're
going
to
focus
on
is
the
duty
of
prudence..
Now
the
duty
of
prudence
requires
you
to
exercise
the
care
and
skill
of
a
knowledgeable,,
prudent
person
charged
with
similar
duties
under
prevailing
circumstances..
So
what
does
that
mean??
The
duty
of
prudence
requires
you
to
be
knowledgeable
in
all
aspects
necessary
for
the
administration
of
the
plan..
E
So
if
you
do
not
have
excuse
me,
if
you
do
not
have
that
expertize,
the
duty
of
produce
requires
you
to
go
out
and
delegate
it
to
someone
who
does
for
the
administration
of
the
plan
and
the
duty
of
prudence
also,
which
will
get
into
further
detail,
really
focuses
on
the
process,
the
deliberative
process,
in
terms
of
the
administration
of
the
plan,
to
make
sure
that
you're
discharging
your
duties
as
someone
who's
knowledgeable
and
in
charge
with
the
same
duties
that
you
do
have..
So
what
does
it
mean
to
be
loyal??
E
Now?
This
board
is
an
interesting
board
and
not
a
representative
board,
so
you
do
not
sit
on
the
board
in
a
representative
capacity.
This
is
not
congress.
you're,
not
there
on
the
board
to
bring
home
the
bacon
for
any
particular
interest
group
which,
which
means
once
you're
seated
as
a
trustee.
You
have
a
constituency
of
one
which
is
the
members
of
beneficiaries.
you're
there
to
sit
on
the
board
to
serve
the
best
interests
of
the
members
and
beneficiaries
in
the
administration
of
the
plan.
E
This
is
one
of
the
strongest
tests
to
help
you
navigate
your
duty
of
loyalty.
part
of
the
duty
to
avoid
conflicts
of
interest
includes,
for
example,,
avoiding
serving
others
interests,,
avoiding
personal
financial
interests
of
your
own,,
avoiding
accepting
gifts
that
could
influence
you
in
your
position
as
a
trustee..
Now,
in
addition
to
the
california
law
on
duty
of
loyalty,,
the
city
of
san
jose
also
has
its
own
city
ethics
code,
which
we
have
also
attached
with
your
backup
materials
which
is
here..
E
So
we
strongly
encourage
the
board
to
review
the
san
jose
code
of
ethics.,
it's
very
specific
as
you
as
you
can
see
as
I
scroll
through,
but
there's
three
general
parts
to
it,
which
are
that
you
should
not
use
your
city
position
for
personal
gain
or
the
appearance
thereof,,
which
is
a
really
important
thing.
I
want
to
emphasize.
it's
not
only
that
you
actually
get
a
personal
gain,
but
anything
that
gives
an
appearance
of
a
personal
gain
by
by
way
of
your.
E
So
if
you
feel
conflicted
in
in
any
way
and
in
terms
of
discharging
your
duties
as
trustee,,
you
may
want
to
consider
that
as
a
potential
conflict.
raise
it
with
roberto
harvey
and
we
can.
We
can
talk
through
that
to
see
if
it's
the
actual
potential
conflict
that
would
hamper
your
independent
judgment.
As
trustee
on
the
board
and
your
duty
of
loyalty.
E
and
lastly,,
this
one's
a
pretty
straightforward
one
under
the
city's
ethics
code,
which
is
the
same
under
california
law,
which
is
avoiding
gifts
or
other
compensation
that
would
unduly
influence
you
now,
whatever
in
doubt,
disclose
and
recuse.
So
so
the
rest
of
the
board
can
take
its
action.
and
again,.
If
you
have
any
doubt
or
question
of
whether
or
not
something
may
raise
a
conflict
of
interest
issue
or
undue
influence,
issue,,
please
raise
it
with
harvey
and
I.
so
what.
E
Does
it
mean
to
be
prudent
again?
You
mentioned
this
earlier.
The
duty
of
prudence
really
is
about
deliberative
process
and
due
diligence,
and
I
want
to
remind
the
board
that
having
a
good
process
matters,
the
good
results.,
so
now
what
in
the
conflicts
of
interest
arena,
does
good
process
mean??
So
that
means
having
open
and
fair
discussions
about
all
board
matters..
So
that's
why
we
have
the
browny,.
That's
why
we
have
a
public
board
meeting,
so
we
can
by
all
stakeholders
to
come
and
speak
to
any
item
before
we
take
official
action
and
another.
E
What
else
does
it
mean
to
be
prudent,
which
is
it
means
to
stay
within
the
boundaries
of
good
governance.?
So
we
have
various
policies
and
committees
and
whatnot
and
bylaws
and
charters
with
the
board's
governance..
So
it
would
be
prudent
to
stay
within
those
guidelines
because
we
worked
hard
to
decide.
Those
would
be
the
right
parameters
for
the
board's
conduct
of
business..
E
E
Lastly,
we
want
to
focus
on
a
culture
of
meritocracy.
So
again
we
are
looking
to
what
what
is
good
for
the
plan
and
materially
good
for
the
plan,
so
that
we
can
discharge
her
duty
of
loyalty,
which
is
to
pay
benefits.
when
do
to
her
membership..
Now,
with
that,
I
am
turning
it
over
to
harvey
who
will
lead
us
through
a
number
of
scenarios.
ok,.
This.
I
I
I
That
have
taken
place
in
other
of
our
client
systems
for
real
and
they're
thought
provoking,
and
I
want
to
encourage
you
to
participate
in
answering
the
questions
about
them
and
observing
certain
behaviors
that
you
think
are
perhaps
over
the
line
or
get
trustees
into
trouble..
So
let's,
let's
start
with
the
first
scenario..
Let
me
take
you
through
and
and
then
let's
have.
I
I
I
This
share
of
the
investment
committee
will
be
attending
for
free
and,
as
you
can
imagine,,
the
chair
is
very
flattered
to
be
invited
to
this
and
readily
accepts
it.
and
that
evening.
At
the
event,
the
chair
is
very
thrilled
to
meet
with
representatives
from
two
firms
that
investment
staff
just
happened
to
be
interviewing.
That
week
for
a
new,
fixed
income
mandate
and.
I
J
A
I
I
I
I
I
G
I
I
Of
course
it
has
nothing
to
do
with
the
administration
of
the
pension
fund..
So
it's
it's
serving
an
interest
other
than
the
members
and
beneficiaries
of
the
system..
It's
a
it's
a
long,
audible
interest
to
find
interest,
and
if
somebody
wants
to
support
it
on
their
own
nickel,
that
would
be
ok.,
but
for
someone
in
a
trustee
position
to
accept
this
as
a
gift,,
knowing
it's
being
funded
by
people
who
are
simply
trying
to
get
your
business,,
that
should
give
you
some
harvey.
D
I
just
the
fact
patterns
slightly.
I
don't
know
what
your
next
scenario
is
a
little.
Please
go
ahead.,
so
we
I
mean
we
attend
conferences
that
are
informational
and
help
us
understand
the
financial
markets
better
and
be
better
custodians
of
the
plan
and
some
of
those
independent
sponsors
make
lp's
like
us
available
to.
D
General
partners
for
one
on
one
meetings
and
I
usually
decline
them
because
I
tell
them.
I
don't
get
involved
with
manager.
Selection.,
that's
what
our
cio
does.,
but
occasionally
it's
valuable
just
to
do
a
one
on
one
and
just
hear
the
pitch
and
just
hear
their
macro
sense
of
what's
going
on,
but
that
the.
D
D
D
I
I
I
D
D
I
don't
want
to
be
seen
to
be
putting
the
thumb
on
the
scale..
It's
also
not
good
for
me
as
a
practitioner
in
the
venture
universe.,
I
don't
want
some
firms
to
think
I'm
favoring
one
or
the
other,
and
it's
certainly
not
good
for
the
plan
or
in
terms
of
probity..
So
so
that's
what
I
tell
people
and
yet
they
always
reach
back
out
to
me..
I
just
met
with
the
cio..
How
do
you
think
it
went??
I'm
like?
I
have
to
remind
you.
D
I
I
Thumb
on
the
scale
you
you've
done
so
many
things
to
undermine
the
good
governance
of
the
system
and
it
takes
real
fortitude
to
turn
these
people
down
because
the
you
know,
people
want
to
do
business
with
you.
you're.
When
you
go
out
into
the
community,
and
it's
known
that
you
are
a
trustee
of
a
multibillion
dollar
pension
fund
that
attracts
a
lot
of
attention,,
you
are
suddenly
the
smartest,
most
charming
person
in
the
room.
right?
we
weren't.
I.
I
I
People
are
putting
their
trust
in
you
and
you
also
need
to
trust
each
other.
and
if
somebody
has
a
personal
interest
that
they're
not
disclosing
and
they're
a
board
member,.
It's
a
fellow
trustee
of
yours
and
you're,
not
aware
of
and
you're
making
decisions
about,
the
fund
without
really
knowing
then
you've
that
really
tears
the
fabric
of
trust
among
board
members,
and
it
damages
the
level
of
trust
that
your
members
can
have
in
you..
So.
I
I
I
I
I
I
C
I
C
I
A
A
I
I
I
I
I
I
I
I
I
I
I
D
K
I
K
I
D
G
H
H
H
I
I
I
Where
is
the
chalk
line
here??
What
is
undue
influence??
The
difference
between
trustee
being
reasonably
interested
and
reasonably
involved
in
investment
decisions,
for
example,
and
undue
influence
can
be
a
very
tricky
distinction
to
try
to
make..
But
but
there
are
some
pointers
that
we
can
put
down,
I
think
to
help
guide
this
situation.
one.
I
I
I
I
C
I
I
I
I
A
I
Make
that
call
back
over
to
you
or,
I
think,
we're
pretty
much
able
to
wrap
up.
thanks
for
participating
this
morning..
I
appreciate
it
and
it's
very
good.
also
keep
in
mind
that
at
any
time,
if
any
of
you
have
any
questions
or
concerns
in
this
regard,
call
toll
free
one
800.,
I
was
going
to
mention.
D
That
I
was
going
to
mention
that
earlier
when
I
first
joined
the
board-
and
I
was
just
trying
to
make
sure
I
kept
my
two
worlds
separate
but
also
benefited
from
the
expertize
that
I
have
in
my
professional
life
and
bring
it
to
bear
for
the
board,
but
also
make
sure
that
the
boundaries
are
drawn
were
very
helpful.
So
people
should
definitely
reach
out
to
you
may
take
you
weren't
with
us,
then,
but
I'm
sure
that
you're
another
great
resource
for
us.,
very
good.
thanks.
Madam.
A
E
Backup
materials
provided
to
the
governor's
proclamation
remains
in
st.
in
its
current
state
due
to
the
nineteen
pandemic,
and
the
city
council
for
san
jose
continues
to
recommend
social
distancing..
So
this
will
be
the
last
time
this
board
can
renew
its
ab
361
findings,
which
will
carry
you
into
your
march
meeting
for
virtual
meetings..
So
our
first
in-person
meeting,
assuming
everything,
is
going
to
be
left
and
meeting
the
proclamation
from
the
governor
on
the
end
of
this
month
will
be
our
first
in-person
meeting..
E
So
the
two
factual
findings
again
are
the
government,
the
governor
proclamation
for
the
state
of
emergency
due
to
cover
nineteen
remains
in
place,
and
the
city
council
continues
to
recommend
social
distancing..
These
two
factual
findings
will
allow
you
to
meet
virtually,
if
adopted
by
majority
vote
for
the
next
30
days.
thank
you.
ok,.
So
do
I.
D
E
E
under
those
rules.
It's
either
you
have
an
emergency
as
specified
under
the
statute
or
there's
a
personal
reason
as
well.
So
we
can
talk
about
that
offline,
but
they're
very,,
very
strict
in
terms
of
what
what
qualifies.,
but
we
can
certainly
explore
that.
alternatively,.
As
trustee
jennings,,
it's
mentioned,
you
can
also
do
the
old
school
broadnax
posting
of
your
location.
Wherever
you
are
so
we
can
discuss
those
options.
H
Where
they're
going
to
be
the
meetings
for
the
most
part,
we're
going
to
go
back
to
our
usual
location.,
those
of
you
that
have
a
longer
tenure
with
the
board
and
attend
the
board
meetings
prior
to
the
pandemic,.
It
will
be
a
city
hall.,
but
there
are
a
couple
of
these
meetings
that
they've
city
hall
are
most
likely
at
the
council
chambers,.
Maybe.
H
H
H
H
H
H
H
H
H
H
H
H
H
Senior
staff
as
well.,
so
we
leaning
over
much
but
it
hasn't
been
decided..
I
think
many
of
you
have
responded
indicated
a
preference.
So
hopefully,
if
we
pick
one
out
of
the
other,
you
would
attend.,
but
there
are
a
couple
of
you
that
are
available
for
you
one
of
those
days.
Hopefully
we
end
up
with
the
date
that
you
are
available..
If
not,
I
apologize.,
but
again
that
decision
will
be
made
on
friday
and
you
serve
looking
to
or
possibly
march
30th
with.
That
me
just
say.
H
H
H
H
H
H
H
H
H
Office
manager
for
many
years
in
different
locations,
although
she
does
have
some
prior
experience
with
this
cd
as
well.,
so
amy,,
welcome
to
our
as
we
look
forward
to
working
with
you
and
thank
you,
mr.
adams,
for
allowing
me
to
provide
this
further.
Information.
is
amy.
A
senior
analyst
benefit
is
a
senior
benefit
analyst
correct.,
also
ok,.
So
let's
move.
L
So
it
already
started
on
tuesday
we
had
our
first
of
two
study
sessions
about
priority
setting
with
a
report
out
from
the
five
transition
committees
that
the
mayor's
office
put
in
place..
So
we
will
have
our
second
meeting
about
priority
setting
on
february
twenty
eighth,
and
I
think
that
is
the
same
yeah..
That's
the
same
day
that
the
five
year
budget
forecast
will
also
be
received.
E
Virtually
so
because
our
meeting
is
thirty
days
from
this
meeting
in
february,
they're
allowed
under
eighty
three
sixty
one
to
continue
to
meet
at
that
next
march.
Meeting
virtually
thereafter,
there
will
be
no
governor's
proclamation,
so
they
cannot
renew,
and
so
they
will
be
in
person
in
april..
Ok
thank
you..
I.
L
D
C
D
D
A
H
A
N
N
Listed
on
the
application
are
neck
right,
shoulder
left
shoulder
right,
hand,
left
hand
and
right
shin..
The
date
the
disability
retirement
application
was
received
was
seven
seven.
Sixteen
current
status
is
service
retirement,
effective
seventeen.
Sixteen
steps
at
the
time
of
separation
was
disability.
Leave
status
at
the
time
of
application
was
disability,
leave
work
restriction
is
no
repetitive,
overhead,
lifting
or
working
with
arms
above
shoulder
level
department.
Accommodation
of
the
work
restriction
is
that
the
environmental
services
department
could
have
accommodated
the
work
restriction
at
the
time
of
separation
and
additional
work.
N
A
A
O
O
O
O
O
O
O
The
board
the
relevant
date
for
determining
service
for
determining
capacity
and
service
connection..
The
two
issues
before
the
board
is
the
date
of
separate
for
miss
surakiart,
poor
and
that
relevant
date
is
july.
Twenty
sixteen.,
that
is
when
the
applicant
was
separated
from
employment,
so
is
about
two
years
after
the
july
2014.
O
O
O
O
Sudhakar
for
several
injections,
the
name
of
the
surgeon
was
james.
Perche
did
not
provide
any
work,
restrictions
for
and
dr.
stern,
the
board's
independent
medical
examiner
asked
and
in
addition,
the
board's
then
medical
advisor
susan
tirman
also
concluded
that
no
work
restrictions
were
applicable
to
miss
sudhakar
pause
right
finger
in
hand..
O
O
To
both
hands,
which,
in
the
context
of
the
overall
in
the
context
of
both
ends
was
was
not
an
appropriate
analysis.,
dr.
wiedemer
or
another,
treating
physician
of
the
applicant
in
june
2000
and
sixteen
provided
work
restriction
of
no
work
with
her
right
hand.
The
disability
committee
in
reviewing
reports.
O
O
O
O
O
O
O
O
A
half
later
where
mr.
data
report
dropped
a
skillet
on
her
left
hand,
causing
pain,
is
still
no
clear
diagnosis
for
the
left
hand
and
dr.
stern's
when
he
examined
her,
found
a
full
range
of
motion.
In
her
left
hand,
looking
ten
capacity
as
to
the
left
hand,
there.
the
medical
record
does
not
indicate
any
restrictions
were
provided
as
of
the
relevant
date
of
july
2016
and
doctors
and
stern's.
O
O
The
neck.,
but
the
committee
felt
or
after
reviewing
the
report
concluded
that
he
did
not
provide
a
persuasive
rationale
for
that
work
restriction
as
disturbance
connection
to
the
neck.
Again,
the
applicant
made
no
complaints
about
anything
affecting
her
neck
at
or
after
the
july
2014
incident,
and
there
were
no
other
work
incidents
affecting
her
neck..
O
O
O
O
O
O
O
Right
shoulder
would
likely
have
had
the
same
downward
sloping
and
chromium
that
the
left
shoulder
did.
the
department
indicated
it
could
accommodate
those
work
restriction
with
respect
to
service
connection
of
the
right
shoulder
the
applicant
at
or
after
the
july.
2014
incident
did
not
complain
of
any
right
shoulder
pain
or
injury,
and.
O
O
O
P
A
A
Q
A
R
M
M
M
M
A
significant
disability
through
worker's
comp
at
70
percent.,
the
doctors,
found
that
the
fault
led
to
a
significant
disability..
The
worker's
compensation
judge,
agreed
and
awarded
her
these
benefits..
So
there's
this
discrepancy
between
what
the
city
doctor,
dr.,
stern's
and
dr.
tirman
found
versus
what
treating
doctor
and
the
neutral
evaluator
found
in
workers
compensation..
So
that's.
M
P
P
P
P
P
P
M
R
M
But
dr.
wittmeyer
and
dr.
gervin
have
provided
more
extensive
work
restrictions..
So
I'm
just
wondering,
were
you
ever
provided
those
work
restrictions
because
at
the
time
of
our
worker's
compensation
case,
she
was
informed
that
the
city
fansite
could
no
longer
accommodate
her
restrictions
by
dr.
irving
and
dr.
wittmeyer
and
she
was
provided
vocational
rehabilitation..
So
is
that
the.
R
R
They
were
temporary
restrictions
at
that
point
in
time,
and
so
at
that
time
we
were
not
able
to
accommodate
them
in
her
current
position
and
she
was
placed
on
a
leave
of
absence
as
a
form
of
reasonable
accommodation
as
they
were
temporary
restrictions..
They
remained
as
far
as
our
records
are
indicating
in
the
letter.
The
memo
that
we
submitted,
those
remain
her
restriction
in
february,
march
and
june
of
twenty
sixteen.,
but
again
they
were
all
still
temporary.
R
R
R
Employee
explained
that
she
believed
that
they
would
enable
to
enable
her
to
return
to
work
in
any
capacity
for
the
foreseeable
future.,
but
again
the
restrictions
that
we
had
were
temporary..
So
on
a
temporary
with
the
restriction
that
we
had,
we
weren't
able
to
accommodate
those
temporary
restrictions.
in
her
addition
to
that,.
We
weren't
able
to
provide
her
a
modified
duty
assignment
because
we
could
not
accommodate
those
restrictions
in
her
regular
position.,
but.
R
Exhausted
all
of
her
leave
of
absence
is,
there
was
modified
duty
provided
for
a
period
of
time,
and
then
she
was
on
leave
as
a
form
of
accommodation
and
because
of
the
length
of
the
leave
of
the
leave
that
she
was
on,.
She
was
separated
pursuant
to
her
bargaining
unit
contract
on
july,
9th
of
twenty
sixteen.
ok,
thank
you..
Any.
P
P
P
Files
walking
construction
sites..
This
is
what
they
said,
that
they
could
not
accommodate
having
a
person
with
everything
that
I
was
going
to
be
doing:
construction
inspections
on
huge
construction
sites
or
small
construction
sites.
Because
of
the
severity
of
the
physical
site
of
the
job
that
I
was.
O
I'm
not
sure
if
I'm
considered
a
witness
for
this
purpose..
I
would
like
to
make
one
brief
comment
in
response
to
a
statement
by
the
applicant,
the
applicant
indicated.
She
did
not
have
osteo
arthritis
before
the
incident,
but
the
incident
triggered
it.
in
point
of
fact,
the
medical
evidence
in
the
form
of
x-rays
taken
in
august.
O
M
A
D
O
O
O
O
O
D
A
A
P
P
On
a
regular
basis,
talking
to
the
surgeon,,
letting
him
know
that
I
was
in
severe
pain
and
he
just
kept
putting
it
off,
putting
it
off
and
giving
me
pain,
medication,
instead.,
here's,
the
big
bottle
of
pain,
medication.,
we'll
take
it.,
and
I
kept
saying
this
is
bad..
This
is
bad.,
I
need
care..
He
waited
four
months,
five
months
to
do
the
surgery
and
by
that
time
it
was
already
too
late
and.
P
P
P
P
A
A
A
A
A
It's
on
the
attachment,
but
I
can
do
it's
the
second
attachment
in
the
packet,
so
the
disability
questions
is,
is
the
applicant
permanently
incapacitated
for
the
performance
of
duty?
number
two,?
Did
the
disability
occur
while
the
applicant
was
an
employee
of
the
city
and
or
a
member
of
the
federated
system?