►
Description
City of San José, California
Federated City Employees' Retirement Plan Board of February 18, 2021
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://sanjose.legistar.com/View.ashx?M=A&ID=843867&GUID=EE6542FB-BF41-48FB-8A19-A8D0FE69E175
A
A
A
A
A
B
B
C
D
B
Thank
you
I'm
here,
so
we
have
all
seven
board
members
here
today,
all
right,
so
we
go
for
before
we're
going
to
close
session,
it's
my
honor
to
present
accommodation
to
trustee
chen
yu's
son
for
her
service.
As
trustee
of
the
federated
city,
employees,
retirement
system
and
federal
city
employees,
health
care
trust
board
of
administration.
B
B
You
so
for
you,
trustee
son,
whereas
trusty
son
was
appointed
to
the
board
administration
of
the
city
of
san
jose
federated
city,
employees,
retirement
system
in
august
18
as
a
as
an
employee
representative
and
whereas
in
appreciation
of
trustee
sons,
two
years
and
six
months
of
service
as
a
board
trustee.
She
served
on
the
audit
risk
committee,
where
she
worked
on
the
city
auditor
recommendations
and
manage
the
approval
of
the
pension
administration
system,
comprehensive
annual
financial
report
and
popular
annual
financial
report.
B
And
whereas
trustee
served
on
the
investment
committee
where
she
worked
on
strategic
decisions
during
the
market
downturn
due
to
hover
19
and
whereas
trustee
sun
has
offered
stability
and
a
progressive
view
during
a
dramatic
change.
Due
to
the
covet.
19
shelter
in
place
now,
therefore
be
resolved
by
the
board
of
administration
and
federal
city
employees.
B
I
I
do
want
to
say
in
addition
to
that,
and
I
really
have
enjoyed
the
time
on
the
board
and
a
couple
of
times
you
had
an
opportunity.
Trainings
together,
you
know
I
I
just
found
you'd,
be
a
valuable
asset
and
you
know
very
thoughtful
and
great
questions
through
our
committee
meetings.
I
just
thought
you
really
added
a
lot
of
value
to
our
governance
of
the
plan.
B
E
C
Great,
thank
you
so
much
for
this
award
and
then
you
know
it
has
been.
It
has
been
a
great
opportunity
for
me
to
serve
the
board
not
only
serving
the
the
general
members
and
the
beneficiary
of
the
plan.
Also,
it
has
been
a
great
opportunity
for
me
to
learn
about
retirement
system
management
and
retirement.
C
B
E
Thank
you
thank
you,
trustee
son,
so,
on
behalf
of
the
members
and
the
office
that
trustee
sung,
we
want
to
thank
you
for
your
commitment
and
your
engagement
with
the
plan
over
this
last
25
years.
Many
of
you
don't
know
these
and
and
you'll
find
out
now
one
trustee's
son
is
gone.
We
have
been
having
difficulty
attracting
members
of
the
plan
to
join
the
board.
E
So
you
know
those
those
were
very
important
discussions
and
again
on
behalf
of
the
the
membership
trustees
on
behalf
of
the
office
staff
and
the
board
members.
We
want
to
thank
you
for
your
air
force
this
over
25
years
and
your
commitment
to
the
plan
and
and
your
work.
So
I
can
thank
you
very
much
and
best
of
luck
to
you
on
your
future
endeavors.
So
thank
you
very
much.
D
C
That
as
well
good
luck
and
thank
you
very
much
for
all
your
work.
Yes
thank
you
and
then
I
want
to
say
that
the
public
finance
the
community
in
the
state
of
california
is
relatively
small.
I
you
know
there
is
no
knowing
that
whether
our
path
will
well
our
past
low
cross
can
so
probably
down
the
road
I'll
see
you
again.
B
B
And,
and
thanks
for
your
service
too,
so
with
that
we're
going
to
move
into
closed
session
and
then
we
should
return
to
open
session
at
about
9
30.,
I
will
not
be
joining
the
board
in
closed
session,
as
the
topic
involves
litigation
which
I
have
a
personal
interest,
so
I
will
not
be
there.
I
will
see
you
at
about
9
30.,
moving
into
closed
session
now.
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
B
B
B
Regarding
meetings
to
your
shelter
in
place,
all
votes
will
be
roll
call
votes.
If
you
are
not
speaking,
please
be
on
mute
to
cut
background
noise
for
discussion
items.
Each
trustee
will
have
a
turn
to
speak
in
roll
call
order
more
than
once.
If
desired,
the
public
will
have
an
opportunity
to
speak
on
each
item
after
trustees.
B
The
public
will
also
have
an
opportunity
to
speak
again
at
the
end
of
the
meeting
on
any
other
item,
not
on
the
agenda
that
is
within
the
subject:
jurisdiction
of
the
board.
Okay.
So,
let's
go
on
to
orders
of
the
day
we
will
in
accordance
with
our
cctv
obligations.
There
will
be
a
recess
from
one
o'clock
to
105
pm
to
accommodate
cctv's
broadcast
process
there.
B
E
B
B
H
B
C
B
Let's
then
go
on
to
item
one
of
the
agenda,
the
consent
calendar.
So
today's
consent
calendar
includes
approval
of
service
retirements
approval
of
deferred
vested
approval
of
board
minutes
approval
of
return
of
contributions,
acceptance
of
communication
information
reports,
approval
of
travel
conference
attendance,
who
will
have
change
in
retirement
date,
report
out
of
closed
session.
B
H
H
B
A
C
B
B
B
G
C
G
I'd
like
to
share
some
performance
information
from
makita.
Of
course,
these
are,
as
always,
audited
preliminary
numbers
for
the
month
of
january.
The
pension
plan
returned
minus
four
basis
points
so
minus
point:
zero,
four
percent,
the
healthcare
trust
added,
35
basis
points
and
our
fiscal
year-to-date
performance
through
tuesday
to
february
16th
was
21.79
for
the
pension
plan
and
twenty
one
point:
five:
three
percent
for
the
health
care
trust
and
our
trailing
one
excuse
me
our
trailing
one
year
number,
which
is
less
meaningful,
but
there's
a
reason
I'm
giving.
G
That
number
is
actually
a
little
over
25,
so
a
trailing
one-year
number
25.
The
reason
I
mentioned
that
is
some
of
you
may
wonder
with
such
a
strong
performance
in
the
market.
You
know
how
do
you
stick
to
your
strategic
asset
allocation
target?
Do
you
rebalance
and
how
often
does
the
team
rebalance
and,
in
fact
trustee
horowitz
horowitz
had
post
that
question
via
email
to
us
and
requested
that
we
actually
comment
on
a
rebalancing
process
and
to
do
that?
I
I
So
this
governs
the
boundaries.
I
call
it
the
minimum
of
what
needs
to
be
done
with
regards
to
rebalancing.
According
to
the
plan,
I've
highlighted
some
of
the
more
relevant
details,
but
basically
on
a
quarterly
basis.
The
plan
needs
to
be
rebalanced
to
the
strategic
asset
allocation
targets
within
a
plus
or
minus
10
percent
range
of
each
asset
class.
I
We
could,
and
we
being
staff
for
the
program
in
general
could
take
longer
to
get
to
those
targets
following
the
adoption
of
a
new
strategic
asset
allocation.
So
if
you
think
back
to
last
march,
there
were
some
rather
large
changes
in
the
allocation,
but
our
implementation
of
kind
of
the
bulk
of
the
risk.
There
was
very
I'll
call
it
atypically
fast,
and
you
can
characterize
the
one
in
march
relative
to
the
one
back
in
2018,
where
we
took,
I
think,
maybe
a
quarter
quarter
and
a
half
to
implement
the
changes.
I
I
So,
just
because
there's
discretion,
though,
remember
that
as
staff
we're
we're
not
trying
to
adjust
any
tactical
weights.
So
we
don't.
We
don't
intentionally
overweight,
equities
versus
fixed
income
or
within
equities
kind
of
manage
the
tactically,
the
em
versus
us
or
say
in
bonds
high
yield
versus
investment
grade
right.
I
So
if
you
know
half
a
step
back
academically,
there's
there's
all
kinds
of
studies
on
optimal
rebalancing
frequency
and
methodology,
and
they
generally
try
to
balance
efficiency
and
transactions
costs
so
that
the
range
of
options
you
know
some
some
studies
say
you
should
let
things
kind
of
run
a
little
bit
capture
a
little
bit
of
momentum,
other
target,
a
rebalancing
premium,
so
rebalancing
back
to
some
target
on
a
regular,
systematic
basis
and
then
lot
a
lot
of
discretionary
methodologies
have
different
market
triggers.
Maybe
market
volatility.
I
So
we've
looked
around.
We've
kicked
the
tires
on
a
lot
of
these
before
and
we've
come
to
the
conclusion
that
they
make
more
sense
in
the
context
of
a
standalone
strategy
rather
than
at
the
plan
level,
and
a
large
part
of
that
is
because
rebalancing
is,
is
limited
by
information,
availability
and
accuracy
right
to
to
rebalance
the
implication.
I
Is
you
you
know
where
you
are
within
some
some
degree
of
accuracy
and
if
you
look
and
think
about
all
the
different
asset
classes
that
are
part
of
our
plan,
we
have
you
know
some
asset
classes
that
reprice
daily,
even
intraday.
If
you
want
it
right
through
listed,
listed
equities,
the
index
funds
that
hold
those
equities,
maybe
some
public
market
separately
managed
accounts.
I
I
Basically,
as
it
happened,
but
private
market
valuations,
you
could
have
been
looking
at
those
valuations
and
wondering
what
was
going
on
because
they
didn't
really
move
a
whole
lot.
Of
course,
there
was
underlying
volatility,
but
it's
not
reflected
as
quickly
as
public
market
valuations
were,
and
so
rebalancing
to
kind
of
tight
tolerances
is
is
really
an
exercise
in
false
precision
at
a
real,
but
it
does
regenerate
a
real
trading
cost
right.
I
I
So
when
we
have
on
a
monthly
basis,
we
have
the
benefit
payment
that
goes
out
right
since
the
sponsor
pre-funded
that
pre-funding
amount
at
the
beginning
of
the
fiscal
year
was
invested
throughout
the
asset
allocation
throughout
the
throughout
the
plan.
Right
so
on
a
monthly
basis,
then
we
need
to
raise
that
cash
to
to
make
the
payment
at
the
end
of
the
month,
so
we're
generally
not
selling
pro
rata
across.
You
know
the
entire
two
and
a
half
billion
dollar
plan
to
raise
20
million.
I
I
So
I,
and
also
when
there
is
a
large
equity
rally
right,
the
the
equity
portions
of
the
plan
certainly
rise
in
value,
but
the
the
plan
overall
rises
in
value
as
well
right.
A
lot
of
other
parts
of
the
plan
have
some
kind
of
equity
beta,
as
well
as
the
the
plan
size.
Overall,
the
denominator
gets
larger,
so
the
the
asset
classes
don't
get
out
of
balance
as
quickly
as
you
might
think,
right,
there's
not
there's
not
as
much
negative
correlation
across
every
asset
class.
I
So
if
you
took
the
the
plan
in
march,
I
just
assumed
it
was
static,
say
there
was
no
rebalancing
you
layered
on
the
index
returns.
That's
not
where
we're
at
today,
all
right
on
a
monthly
basis.
Again,
there's
been
that
kind
of
selling
of
the
overweights
to
generate
the
the
cash
flows
and
topping
up
underweights
as
needed,
and
if
you
do
ever
have
any
questions
about
where
we
are.
I
You
see
where
we
are
relative
to
policy
every
quarter
in
the
reporting
package
from
makita,
and
it's
that
nice
bar
chart
right
before
they
get
into
the
manager
level
returns
going
forward.
So
all
the
work
plan
is
an
evaluation,
a
revaluation
of
our
passive
exposures
and
as
well
as
our
overlay
provider.
I
G
H
H
So
if
I
understand
correctly,
it
seems
most
of
the
upside
in
our
public
equities
and
the
increase
to
that
allocation
has
actually
been
skimmed
off
to
pay
benefits,
so
there
hasn't
been
any
any
large
changes
in
the
asset
allocation
other
than
the
payment
of
benefits
from
the
upside
in
that
particular
asset
class.
Am
I
understanding
that
correctly?
I
Right
so
I
would
say
broadly
through
this
through
this,
since
the
implementation
of
the
strategic
asset
allocation,
our
equity
exposure
has
been
fairly
close
to
the
strategic
asset
allocation
target.
But
again,
that's
not
every
day.
We're
checking
to
make
sure
we're
at
that
percentage
right.
It
goes
through
the
month.
I
Is
that
50
really
50
or
have
the
underlying
market
values
of
the
other
strategies
in
the
plan
not
yet
updated
to
reflect
some
kind
of
rally
what's
going
on
and
so
there's
some.
I
call
it
nuance.
You
could
lump
it
in
with
discretion,
but
there's
some
kind
of
practiced
eye
there
in
looking
at
those
numbers.
H
H
A
second
question
that
I
have
is
much
of
the
money
allocated,
I
believe
for
for
private
equity
and
certainly
venture
capital
has
not
yet
actually
been
deployed,
and
it
is
invested
in
the
russell
3000,
which
has
also
rallied
strongly
in
the
past
year.
So
how
would
that
affect
the
rebalancing
if
there's
a
strong
rally
in
the
russell
3000?
G
Thing
I'd
like
to
share
with
the
board,
so
makita
came
up
with
revised
capital
market
assumptions
in
the
end
at
the
end
of
january,
and
we've
been
working
very
hard
with
nikita
in
coming
up
with
some
options
for
the
ic.
We
have
an
ic
meeting
next
week,
where
we
will
present
some
alternative
options
to
strategic
asset
allocation
and
we'll
also
show
the
results
of
the
current
strategic
asset
allocation
and
expected
returns
going
forward,
given
makita's
revised
capital
market
assumptions
and
based
on
feedback
from
the
ic.
G
You
know
we
will
then
come
back
to
the
full
board
next
month
to
talk
about
those
options.
So
even
so,
trustees
who
are
not
on
the
ic
don't
have
to
feel
left
out.
Everyone
will
get
a
chance
to
actually
weigh
in
on
in
a
strategic
asset
allocation
at
the
board
meeting
next
month
and
we
will
spend
as
much
time
as
is
required
to
discuss
and
debate
the
various
options
with
that.
Mr
chairman,
I
conclude
my
remarks.
Thank
you.
B
G
B
E
E
In
addition,
the
office
staff
is
working
in
the
not
this
month,
but
starting
next
month.
I
will
remind
you
all
in
march,
on
providing
the
cost
of
leaving
adjustment
for
federated
members,
which
is
to
be
included
in
the
april
paycheck,
but
they
are
working
this
month
on
another
adjustment,
which
is
the
it's
also
known
as
the
gpp.
They
guarantee
purchasing
power.
That
is
a
benefit
that
allows
retirees
that
have
lost
more
than
25
of
the
prices
in
power
to
bring
them
back
to
a
75
threshold.
E
E
So
that
makes
it
easier
for
staff
to
work
remotely.
They
don't
have
to
use
their
own
computers
and,
of
course,
when
we
start
getting
ready
to
get
back
to
the
office,
I
suspect
some
time,
perhaps
in
the
second
half
for
the
canadian
year,
that
would
be
the
computer.
They
will
be
also
using
at
the
office
their
laptop.
E
In
closing
a
couple
more
things.
We
are
working
on
the
the
budget
proposal
for
fiscal
year
2122,
and
we
plan
on
presenting
that
to
you
board
next
month,
and
we
are
right
now
in
the
process
of
working
through
senior
benefit.
Analysts
and
benefit
analysts
resumes
so
that
we
can
start
selecting
the
next
steps
in
the
process
and,
hopefully,
interviews.
E
I
think
our
goal
is
to
have
those
two
positions
feel
as
quickly
as
possible
and,
lastly,
we're
hoping
to
be
issuing
the
request
for
proposal
for
medical
medical
advisor
to
the
board
with
disabilities
in
the
next
in
the
next
couple
of
weeks.
So
with
that
that
completes
my
our
update,
I'm
happy
to
address
answer
any
questions
to
address
any
issues
that
you
have.
B
A
B
All
right
so
before
we
go
on
to
5c,
I
didn't
put
it
together.
Some
of
you
may
have
heard
before
the
meeting
that
trustee
chandra
needs
to
leave
a
little
bit
early
today.
So
I
should
have
covered
this
in
the
orders
of
the
day,
but
I
think
it
would
be
good
to
take
item
5e.
The
committee
assignments
before
trustee
chandra
leaves
so
any
objections
to
moving
to
5e.
At
this
point,.
G
B
B
So
you
said
the
committee:
these
are
today's
committee
assignments
released
through
2020
and
we
we
need
to
make
these
committee
assignments
every
year.
We
are
a
little
bit
later
intuitively.
We
would.
You
would
think
we
would
do
this
right
at
the
beginning
of
europe.
I
think
with
changes
were
making
to
the
you
know
to
this.
B
B
B
The
trustee
kelleher
is
now
shown
here
as
an
alternate
I'm
going
to
suggest
we
do
away
with
the
alternate
role
because,
as
you
probably
saw
in
the
board
operations
policy
on
these
committees,
there
really
isn't
an
alternate
designation
in
the
policy.
So
this
is,
as
you
see
it
up
on
the
screen.
It's
really
not
quite
an
alignment
with
the
policy.
So
for
that
reason,
I'm
suggesting,
as
we
move
trustee
kelleher
into
the
committee,
we
would
do
away
with
the
alternate
role.
B
Functionally
alternate
is
just
like
any
any
board
member
sitting
in
as
a
member
of
the
public
on
the
committee
meeting.
So
you
know,
there's
really
no,
no
more
or
less
power,
so
to
speak
with
that
alternate
role,
so
investment
committee
would
be
trustee,
chandra
trustee
or
trustee
kelleher.
No
alternate
there,
an
audit
committee
there
trustee
kelleher
unsuggested.
He
would
remain
and
I'm
sorry
on
the
vestment
committee,
trustee
chandra
would
remember,
chair
audit
committee,
trustee
kelleher
would
remain
chair,
trustee
jennings
would
remain
and
then,
as
trustee's
son
departs.
B
B
B
B
C
B
H
Lester
horowitz
yeah.
I
have
some
comments.
Yes,
as
respect
to
the
audit
committee,
it
pains
me
to
say
it
is
an
area
of
which
I
am
painfully
ill-equipped
to
offer
much
insight
or
experience
and
would
certainly
be
open
to
swapping
that
assignment
with
almost
any
other
and
as
respect
the
very
important
investment
committee.
B
C
Yeah,
I
kind
of
agree
with
trustee
castaleo.
I
think
mark
calhoun
brings
extensive
background
and
experience
and
having
him
be
a
full
member,
I
think,
is
really
important.
I
really
do
I
think
if,
if
someone
else
wants
to
have,
I
know
this
is
kind
of
a
very
interesting
committee
that
a
lot
of
people
want
to
be
on,
since
I'm
the
only
other
city
employee.
C
Now
as
a
trustee,
you
know
that's
me,
but
I
don't
see
that
I
have
as
much
background
or
experience
other
than
I
asked
lots
of
questions.
I
don't
know
jay
I
mean
if
I
don't
know,
if
trustee
horowitz
is
interested.
I
know
his
background
is
a
little
more
in
the
investing
world
I
mean
if
he
was
going
to
be
maybe
an
alternate
if
he
kept
that
and
gave
him
that
opportunity.
C
I
would
just
add:
thank
you
julie.
I
want
to
add
a
note
of
appreciation
of
what
julie
is
expressing
as
best
especially
as
her
representation
of
you
know,
actual
staff,
or
you
know,
ex-staff,
and
that
I
wanna
just
take
us
back
to
what
the
cio
palani
mentioned.
Is
that
you
know
the
information
and
the
discussion
does
come
back
to
the
broad
board,
so
there
really
isn't
any
kind
of
demarcation,
there's
a
very
open
flow.
So
I
just
want
to
highlight
that
point.
H
E
If
I
may
check
us
again,
if
I
can
say
a
couple
of
things
so
number
one,
obviously
trustee's
son
last
day
at
the
city
will
be
tomorrow,
we
will
be
reaching
out
to
the
city
clerk
to
kick
off.
You
know
to
let
them
know
and
asked
them
to
initiate
the
process
to
seek
a
member
from
from
the
plan
to
join
as
a
trustee
that
may
take
some
time
she,
the
city
clerk,
has
also
has
the
hands
full
with
other
positions
and
other
boards,
including
the
police
on
fire.
E
So
I
can
tell
you
from
experience
that
process
has
been
going
slow.
I
don't
think
that
I
think
you
know
honestly.
We
will
probably
when
we
get
someone
on
board,
we'll
probably
be
towards
the
second
half
of
the
canada
year
sometime
in
the
fall.
That's
that's
what
I'm
guessing
right
now,
but
when
we
do
you're
bored
depending
on
when
this
new
member
comes
and
join,
you
and
you
board
you're
going
to
have
to
make
decisions
again
in
terms
of
the
committee
assignments.
E
E
E
We
just
need
members
that
are
engaged
in
the
process,
and
I
think
I
mentioned
before
you
know
I
would
love
for
you
to
join
that
comedian.
Give
it
a
chance,
in
fact,
since
this
is
trustees
on
last
last
meeting-
and
this
is
a
very
important
meeting
that
is
actually
happening
right
after
your
board
meeting.
If
you
have
the
time
if
you
are
available,
and
you
end
up
being
appointed
to
that
committee,
I
will.
E
E
Even
if
you're
not
part
of
that
committee,
you
certainly
can
join
the
the
meetings
as
a
public
member
and
will
make
everything
available.
If
that's,
if
you
desire
to
do
that
so
again,
I
think
the
number
one
issue
here
is
engagement
and
I
do
have
to
say
that
all
of
you
are
extremely
committed
and
engaged
to
the
process
and
to
the
work.
So
for
that
we
thank
you,
and
you
know
I'm
happy
to
address
any
specific
questions
if
there
are
any
about
any
of
the
committees
going
forward.
Thank
you.
F
F
F
F
But
I
think
we
we
need
to
think
about
this
as
a
team
sport,
as
we
think
about
these
committees
and
and
try
and
put
our
best
players
forward.
Who
can
help
us
in
the
way
the
committee
needs
help
now
and-
and
for
that
reason-
and
I
also
appreciate
trustee
kelleher
last
time-
demurring
and
acting
as
an
alternate-
and
I
just
wanted
to
make
sure
that
we
considered
those.
You
know
my
thoughts
as
chair
and
what
the
committee
needs,
as
we
think
about
the
committee
assignment
going
forward.
F
B
So
we
do
need
to
finalize
just
that
third
seed
on
the
audit
committee
and
trusty
horowitz.
I
I
I
catch
your
hesitation
and
yeah
if
you're
not
able
or
willing
to
want
to
do
it.
I
will.
I
will
do
that.
I
know
that
audit
committee,
from
what
I've
seen
not
being
on
audit
committee,
I
do
believe
they
have
a
very
ambitious
work
plan,
especially
with
the
new
internal
auditor
coming
on
board.
B
H
F
B
Very
good
well,
thank
you
very
much
trustee
vista
horowitz,
yeah
and
yeah.
I
you
I,
I
really
believe
you'll
be
a
good
ad
to
trustee
keller's
committee
there,
okay,
so
just
to
finalize
one
more
time
before
we
before
I
ask
for
a
motion.
The
second
ic
would
include
trustee
chandra
trustee
orr
trustee
kelleher,
the
as
with
with
trusty
chandra's
chair.
I
B
C
B
H
B
B
E
That
is
correct,
barbara
will
be
presenting.
I
just
want
to
say
a
couple
of
quick
words.
You
may
recall
that
the
original
strategic
plan
of
communication
was
presented
to
you,
boar
I'm
gonna,
say
probably
in
the
summer
of
2020.
It
was
approved
by
your
board,
and
this
is
the
first
update
that
we
have
prepared
for
you
in
the
strategic
communications
plan.
I
think
the
goal
is
to
bring
you
updates
on
the
plan
planned
every
six
months,
and
so
with
that
I'll
turn
it
over
to
barbara
barbara.
D
D
In
addition
to
posting,
the
state
of
the
retirement
system,
address
video
and
also
planning
for
additional
videos.
So,
as
far
as
the
website
redesign,
this
has
not
been
completed.
As
of
yet
now
we
did
develop
the
portion
of
the
website
that
related
to
open
enrollment
and
that
was
launched
back
in
october
2020
and
we're
continuing
to
work
on
the
remainder
of
the
the
website.
D
Moving
on
then
for
the
retirement
planning
webinar.
We
we
have
completed
this
portion.
Orris
has
a
retirement
presentation,
that's
available
on
on
our
current
website,
to
provide
prospective
retirees
information
on
the
retirement
process
and
there's
also
a
series
of
retirement
planning,
zoom
webinars
that
are
scheduled
throughout
the
year
so
for
the
webinars
for
open
enrollment.
This
also
was
completed
this
year
due
to
covet.
D
Actually,
the
health
vendors
hosted
a
series
of
open,
enrollment
webinars
throughout
october
and
november,
as
well
as
offering
one-on-one
virtual
meetings
with
with
members,
giving
retirees
an
opportunity
to
speak
directly
to
to
the
vendors,
so
that
was
offered
this
year
or
in
october
and
november,
the
tutorial
videos
for
the
open
enrollment.
This
was
done
also
october
2020.
D
E
D
Sorry,
sorry
about
that,
okay,
I
can
pick
back
up
about
the
newsletter
so
yeah
we
we
have
been
sending
that
out.
It's
a
quarterly
newsletter
and
we
just
sent
out
another
one
in
january
and
our
next
newsletter
will
be
published
in
april
2021
and
then
for
email
glass.
We
mainly
have
sent
out
emails
to
date
up
until
december
2020
about
open
enrollment
and
so
those
emails.
D
D
D
B
A
D
C
C
D
Yeah
we
do
intend
incorporating
a
survey
into
the
website
and,
in
addition,
for
the
newsletter
actually
funny
enough,
we've
we're
now
planning
on
incorporating
a
feature
to
request
feedback
from
our
readership
and
and
give
us
some
feedback
and
then
ongoing.
Obviously,
as
we
increase
our
email
outreach,
we
will
be
asking
for
that
feedback.
B
F
E
E
But
I
have
to
say
the
word
by
the
by
the
staff
led
by
barbara
and
linda
on
the
newsletter
and
then
barbara
with
information
technology
and
the
website
and
the
rest
of
the
work
with
the
member
portal
and
the
engagement
by
the
staff
is
really
what
makes
this
this
plan
hopefully
will
make
it
successful,
and
it's
really.
Why
is
working
today,
so
I
just
wanted
to
make
sure
that
the
ball
understood
that
there's
a
lot
of
work
behind
the
scenes.
E
B
Yeah,
I
agree
and
yeah
I'm
glad
it's
such
a
priority
to
for
to
make
sure
that
what
we're
all
that
we're
offering
is
is
being
transmitted
to
the
to
the
to
the
members.
Okay.
Well
with
that,
let's
go
ahead
and
take
a
five
minute.
Well,
it's
I
have
10
38,
let's
be
back
at
10
45
and
we'll
come
back
to
deal
with
5d
the
extension
of
contracts
and
the
presentation
by
fiduciary
council,
so
10
45,
please!
Thank
you.
Everybody.
B
A
A
A
B
E
Yes,
yes,
I
am
thank
you,
chair
castigano,
so
the
the
contract
for
accurate
services
and
actual
audit
were
last
granted
about
five
years
ago.
They're
coming
up
and
we
have
two
options.
We
either
issue
a
recursive
proposal.
They
they
expire
on
june,
30th
2021
or
instead
I
won't
go
into
the
details.
You
saw
our
memo
explaining
our
rationale
for
requesting
that,
rather
than
going
through
a
request
for
proposal
to
extend
those
contracts
for
another
three
years,
let
me
just
give
you
some
background.
E
The
the
the
actuarial
audit
services,
the
first
ever
audit
of
the
actuarial
process,
was
actually
completed
five
years
ago
with
the
evaluation
as
a
june
30th
2016
by
the
siegel
company.
At
the
time
we
issue
a
request
for
proposal
for
actual
services
and
audit,
and
those
were
the
two
firms
that
actually
beat
into
the
process
and,
as
a
matter
of
transparency,
signal
actually
has
done
some
work
in
the
past.
I
believe
it
was
a
police
officer
board
in
the
past.
E
My
point
here
is,
as
the
memo
indicates
even
even
nationwide,
there
is
a
handful
of
actual
firms
that
that
really
concentrate
in
providing
the
service
for
public
entities
or
public
plans
such
as
san
jose
and
specifically
in
california.
That
number
is
even
smaller
about
three
or
four
firms,
and
so
we
felt
twofold
that
you
know
number
one
and
I
don't
I
don't
mean
to
speak
for
you
bore,
but
I
can
tell
you
from
a
staff
standpoint.
E
E
You
mean
aside
from
ari,
yes,
I
think
I
I
don't
know
I
think,
last
time.
The
reason
you
bore
you
may
recall
that
we
were
working
on
a
project
for
the
overpayment
of
the
human
benefits
and
there
was
a
lot
of
work
that
was
required.
So
I
think
they
both
thought
there
was
a
possibility
that
if
kim
was
sort
of
stretching
their
services
that
they
could
also
as
signal,
I
can't
think
of
any
right
now
or
services
that
karen
can
provide.
E
B
If
there
aren't
any
other
questions
and
we
need
a
motion
in
a
second
to
do
two
things-
one
is
to
authorize
the
ceo
to
negotiate
and
execute
the
first
amendment
to
the
agreement
with
chiron
for
actual
services
for
three
years,
ending
june
30
24
for
an
additional
700
000,
and
to
authorize
the
ceo
to
negotiate
and
execute
the
first
amendment
to
an
agreement
with
siegel
for
actual
audit
services
and
as
a
retained
actuary
as
needed
for
three
years
june.
30Th
24
for
an
additional
125
for
audit
services
or
250.
E
F
B
C
A
D
B
J
Good
morning,
nice
to
see
all
of
you
again,
I
think
I
think
they're
pulling
up
the
powerpoint
now
great.
Thank
you
so
we're
going
to
spend
the
next
10
minutes
or
so
talking
about
the
use
of
diversity
and
inclusion
data
in
the
contracting
process,
and
recently
there
have
been
a
number
of
questions
that
have
come
up
about
how
a
public
retirement
board
can
collect
and
use
diversity
data
in
that
process
of
engaging
your
outside
contractors,
vendors
service
providers
etc.
J
These
fiduciary
principles,
I'll
just
highlight
them
briefly
today.
Next
slide,
please,
okay.
So
with
that
fiduciary
background,
let's
jump
into
prop
209
prop
209
amended
article
1,
section
31
of
the
california
constitution,
to
eliminate
certain
affirmative
action
programs.
It
was
passed
in
1996
with
55
of
the
vote.
At
that
time
it
was
immediately
challenged,
but
it
survived
challenge
then,
and
it
survived
a
number
of
legal
challenges
since
then,
as
recently
as
as
2020,
there
was
an
initiative
on
the
ballot
to
repeal
prop
209
that
failed
okay.
So
what
does
it
do?
Prop?
J
So,
as
I
mentioned,
there
have
been
a
number
of
challenges
to
prop
209
and
out
of
this
body
of
case
law.
We
have
kind
of
a
set
of
programs
that
are
clearly
impermissible,
a
set
of
programs
that
courts
have
made
clear
are
permissible
and
of
course,
there's
going
to
be
some
some
gray
in
between.
But
what
I'll
highlight
for
you
now
are
some
impermissible
programs
and
some
mis
some
permissible
programs.
J
So
you
know
so
that
that
means
you
couldn't
have
a
specific
requirement.
That
said,
we
have
to
have
x
number
of
women
in
the
process
or
women-owned
firms
in
the
process.
For
example,
second
categorically
treating
a
firm
as
being
socially
or
economically
disadvantaged
based
on
diverse
ownership
or
gender
ownership
is
not
permitted.
J
Third
is
selective
dissemination
of
information,
so
if
if
the
rfp
notice
is
only
going
out
to
certain
firms,
that
would
would
not
be
permitted
and
then
the
the
fourth
one
to
draw
your
attention
to
is
scoring
bidders
based
on
something
like
diversity.
Headcounts
that's
been
ruled
to
be
impermissible
next
slide.
J
J
Second,
and
and
what
really
comes
into
play,
oftentimes
in
the
rfp
process,
is
that
data
collection
is
permissible.
Data
collection
is
permissible
as
long
as
it
serves
a
compelling
governmental
interest,
and
you
see
this
quite
a
bit
with
retirement
boards.
So,
for
example,
the
compelling
governmental
interest
might
be
to
reveal
unintended
bias
or
to
eliminate
past
bias
and
discrimination
in
the
in
the
investment
context
it.
It
might
be
an
investment
belief
that
assessing
diverse
talent
is
going
to
lead
to
improved
results.
J
So
those
are
some
examples
of
compelling
governmental
interests
that
might
then
justify
data
collection,
even
robust
data
collection
around
these
diversity
and
inclusion
issues,
and
then
third,
it's
permissible
to
have
preferences
that
are
based
on
other
criteria,
not
the
ones
that
are
prohibited
in
prop
209.
So
some
examples
are,
you
might
have
a
program
that
has
a
preference
for
economic
disadvantage
or
geography
and
to
put
that
into
context
in
the
retirement
plan
context.
J
J
J
J
All
the
way
up
to
very
robust
data,
including
we've,
listed
some
examples
here:
policies
on
the
vendors
workplace,
diversity
and
inclusion,
programs,
discrimination
and
harassment
how
they
have
how
they
police
their
own
policies,
what
sort
of
oversight
they
have
internally
and
then
what's
their
track
record
like
what's
their
claims
history?
How
well
are
they
doing?
J
Sometimes
boards
will
ask
for
information
on
the
firm's
own
strategies
and
goals
and
ambitions
around
diversity
and
inclusion.
One
I
didn't
list
here,
but
that
also
you
know,
is
used
quite
frequently
as
the
firm's
data
around
pay,
equity
and
and
how
the
firm
itself
is
paying
its
partners
or
its
members
and
employees.
J
So
the
next
thing
to
think
about
is
when
that
data
will
be
thought,
and
here
it's
it's
not
that
there's
a
perfect
moment
in
time,
but
rather
to
be
thoughtful
in
the
decision
around
when
data
is
thought
and
to
avoid
being
careless
because
kind
of
a
careless
consideration
can
end
up
leading
to
other
problems
that
I'll
get
to
next
and
so
the
kinds
of
timing
issues
that
a
board
would
think
about
would
be.
You
know,
are
you
asking
for
that
data
before
the
rfp
process
during
it?
J
J
J
Please,
okay
and
then
the
next
thing
to
do
is
to
clearly
define
and
document
the
goals
and
outcomes
around
collecting
the
data.
The
way
to
think
about
this
is
if
you're,
going
to
collect
diversity
and
inclusion
data.
You
want
to
be
able
to
articulate
why
you
want
to
have
thought
through
what
what
compelling
interests
have
we
identified
as
being
served
by
collecting
the
data
and
it's
good
to
have
those
written
down
it's
good
to
have
them
reflected
in
other
things,
perhaps
their
reflected
investment
policies
or
investment
beliefs.
They
might
be
reflected
in
diversity.
J
Statements
somewhere
is
the
the
collection
of
paper
that
you
know
shows
that
thoughtful
process.
That's
gone
into
this
of
identifying
the
compelling
interest.
Oftentimes,
that's
going
to
be
supported
with
research
and
findings
as
well.
It
doesn't
it's
not
always,
but
sometimes
it
will,
and
that
also
is
helpful.
So
you
know
going
back
to
our
example
that
compelling
interest
might
might
be
an
investment
belief
that
you
know
better.
Results
are
reached
when
there's
a
diverse
talent
pool,
there's
an
enormous
amount
of
empirical
research.
That
would
support
that.
J
C
Hi
this
is
elaine.
Yes,
thank
you
very
much
for
the
presentation.
I
I
thought
it
was
really
helpful
to
get
a
broader
sense
of
what
the
legal
parameters
are.
I've
had
some
experience
with
diversity,
inclusion
issues
running
a
building
out
an
emerging
manager
program
at
the
foundation.
I
was
with
previously
and
also
working
with
a
specific
foundation
that
advances
diversity,
inclusion
in
the
financial
sector.
C
So
when
I
think
about
the
broad
you
know,
the
themes
that
you
shared
I
wanted
to
put
this
out
really
for
our
group
is
really
with
something
like
this,
as
we
think
about
a
policy
be
first
tackled
at
the
broader
board,
or
would
we
take
it
to
one
of
the
committees
to
sort
of
do
some
some
scouting
work?
If
you
will
thoughts
from
anyone.
E
E
I'm
sorry
I've
been
vice
mayor
jones.
Thank
you
linda.
He
was
the
one
that
raised
the
issue
at
the
city
council,
which
is
the
reason
why
we
brought
the
this
issue
for
for
educational
purposes
to
you
born.
I
also
want
to
mention
that,
I'm
not,
I
know
the
city
is
embarking
in
a
process
where
they're
trying
to
implement.
E
If
you
boards
implement
policy,
it
will
be
in
terms
of
staff.
It
will
be
for
the
for
the
search
of
the
ceo
and
cio
in
the
future,
as
well
as
obviously,
if
you're,
considering
also
including
those
policies
search
for
money
managers
right.
That
will
be
the
other
side
of
that
equation
as
well,
so
that
would
break
it
into
the
board.
E
But
but
my
last
comment
would
be
that
this
would
be
something
that
I
think
it
would
make
sense
if
it's
something
that
your
boy
wants
to
entertain,
that
will
be
doing
jointly
with
the
police
on
fire.
So
to
that
extent
he
almost
suggests
that
the
first
path
of
discussion
will
have
to
be
the
joint,
the
apc.
The
joint
president
committee.
B
B
C
J
J
So
I
wouldn't
you
know
I
wouldn't
want
you
to
walk
away
from
the
overview,
with
the
sense
that
nothing
can
be
done,
because
I
I
think
that
that
there
are
many
examples
of
systems
that
have
very
clear
goals,
around
diversity
and
inclusion
and
and
have
found
ways
to
make
those
work
notwithstanding
prop
209,
but
you're.
Absolutely
right
that
it
is
it's
a
specific
path
and
it
you
know
you
can't
just
kind
of
in
california.
You
can't
just
do
it.
J
C
You
had
a
section
where
you're
like
this
is
kind
of
what
you
can
do,
but
you
have
done
jenny,
a
great
job
of
putting
things
in
a
layman's
language
which
I
totally
appreciate.
So
I
can
follow
it
right.
So
as
you're
comparing
calpers,
can
you
give
me
something
specific
of
how
they've
made
this
work
for
them
and
still
on
that
path?.
J
Yeah,
so
let
me
give
you
an
example
or
two
and
then
what
I
would
also
say:
if,
if
the
board
wants
to
consider-
or
one
of
the
committees
wants
to
consider
it
further,
we
can
bring
back
more
examples
of
kind
of
a
survey.
We've
done
that
with
other
awards,
a
survey
of
what's
being
done
not
just
by
california
systems
but
across
the
country.
But
you
know
one
example
are
emerging
manager,
programs
and
those
you
know
like
we.
J
Also
it
just
really
robust
data
collection
on
the
idea
that
there's
accountability
that
happens
in
that
there's
elimination
of
bias.
That
happens
in
that
just
the
consciousness
of
knowing
what's
actually
happening
and
having
that
data
that
that
that
in
and
of
itself
can
eliminate
bias.
So
I
think
those
are
two
examples
that
come
to
mind
of
what
other
systems-
those
not
just
calpers.
There's
not
a
ton
of
them
in
california,
when
you,
when
you
get
down
to
the
county
plans
and
city
plans,
there's
not
as
many.
A
J
C
I
just
I
just
underlined
that
I
think
this
is
a
really
timely
topic.
I'm
glad
jenny
that
you've
done
so
much
background
work
and
that
a
lot
of
the
information.
If,
if
people
are
interested,
I
mean
you
can
certainly
just
do
a
quick
google
search.
Most
public
plans,
corporate
plans,
anything
you
know,
leaders
in
the
field,
even
among
our
staple
of
managers.
C
If
you
just
go
to
our
performance
report,
that
makita
provides
and
just
go
on
to
any
one
of
those
websites,
I
would
I
would
hazard
a
guess
that
99
have
probably
made
some
public
statement
around
their
diversity,
inclusion
policies,
and
so
I
think
things
to
maybe
oversimplify
it's
it's
good
to
have
the
organizing
oversight
bodies,
the
investment
management
teams
themselves,
our
managers
be
representative
of
and
a
good
reflection
of,
the
communities
we
serve.
So
we
look
at
it
that
way.
C
You
know
whatever
the
I
don't
have
the
stats
for
santa
clara
county,
but
you
look
at
some
of
those
stats
and
then
you
try
to
reflect
some
element
of
that
into
the
leadership
and
ownership
of
the
firms
that
we
hire
at
the
bare
minimum.
Just
are
asking
the
question:
do
you
think
about
this?
Do
you
do
anything
about
diversity?
Inclusion,
do
you
care
and
then
having
that
sort
of
build
up
from
a
database
moving
forward
is
going
to
be
helpful
and
just
from
a
selfish
point
of
view,
from
an
alpha
generating
perspective.
C
Of
course
you
want
to
have
managers
who
think
differently
and
can
find
something
interesting
that
others
cannot
and
hopefully
that
they're
not
part
of
sort
of
the
the
crowd
right.
You
want
that
health
and
generator.
So
I
just
think
this
is
a
very
critical
and
important
topic,
and
I'm
I'm
glad
to
hear
that.
There's
a
lot
of
positivity,
or
at
least
heads
nodding
over
the
zoom
video
thanks.
B
Yeah,
thank
you
yeah.
I
think
it.
I
also
think
it'd
be
a
very
good
conversation
to
have,
and
I
just
envisioned
it.
We
will
need
to
talk
with
through
the
jpc
and
get
board
approval
on
on
policy
or
goals,
and
then
look
at
some
benchmark
data
to
see
where
we're
really
at
on
on
all
that
laura
did
you
want
to
say
something?
You
turn
your
camera
on.
C
And
that's
you
know.
We
think
something
that
we
can
continue
to
do
better
on
and
and
we'll
continue
to
make
lots
of
efforts
like
emerging
manager
days,
where
we
invite
groups
that
we
might
not
have
met
yet
to
meet
with
our
research
team
so
that
we
can
include
them
in
searches
going
forward
if
we
want
to
recommend
them
to
our
clients.
But
we
do
think
that
we're
sort
of
you
know.
You
know
we
put
a
lot
of
effort
into
this
area.
C
We
have
a
diverse
emerging
manager
committee
and
we
also
have
a
diversity
inclusion
committee
that
thinks
about
policies
for
makita
as
a
whole.
So
you
know,
I
think
the
finance
industry
has
a
long
way
to
go
and
we'll
continue
to
focus
on
it.
But
but
we
are
on
your
behalf,
trying
very
hard
to
include
a
wide
array
of
firms
with
different
ownership
structures
that
are
reflective
of
of
the
country
as
a
whole
and
your
specific
area.
B
B
E
So
so
they
will
have
to
be
split
one
for
personal
purposes,
the
jpc,
but
but
I
think
the
one
where
we
sort
of
concentrated
the
last
part
of
the
discussion
which
is
in
in
the
money
manager
side
that
that
will
make,
I
think,
will
have
more
sense
to
be
had
at
the
investment
committee
meeting.
So
I'm
hoping
to
open
to
suggestions
and
open
to
direction
I'll
follow
through
you
know,
obviously
I'll.
E
F
B
If
it's
a
combination
of
ic,
jpc
and
or
governance,
I
don't
like
to
fall
back
on
you
for
that,
and
maybe
we
can
talk
about
it
offline
at
our
next
meeting
with
the
vice
chair
horowitz,
but
I
think
that
the
interest
is
definitely
there.
Now,
it's
just
a
question
of:
what's
the
what's
the
next
steps,
the
next
path
forward,
custody,
chandra.
F
The
second
is
the
staff
that
we
hire,
so
that
would
be
jpc
and
then
the
third
is
the
managers
that
we
select
within
our
investment
program.
So
I
yeah,
I
think
you
pretty
much
stole
my
thunder
at
the
end
there.
I
don't
think
this
is
a
governance
issue.
I
don't
think
this
is
a
jpc
issue.
I
don't
think
it's
an
investment
committee.
I
think
it's
all
of
the
above.
H
F
B
F
Yeah,
excuse
me
yeah,
so
we
we
gave
an
update
in
january
coming
out
of
the
december
meeting,
so
the
next
update,
but
you'll
really
see
the
work
will
be
at
the
march
meeting
where
we
bring
the
strategic
asset
allocation
discussion,
and
so
we'll
do
that.
First
at
the
committee
and
then
all
of
the
trustees
will
have
an
opportunity
in
march
to
weigh
in
as
we
make
a
final
selection
for
our
saa.