►
Description
City of San José, California
Police & Fire Department Retirement Plan Board of December 2, 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=908605&GUID=E0AA836D-B022-4B30-A435-363BDFC7BAF6
A
A
A
A
A
A
A
A
B
B
Fired
up,
let's
go
and
do
a
roll
call.
Let's
say
andrew,
are
you
here
here,
that's
great
sunita.
Are
you
here.
B
Great
howard,
have
you
gotten
on
yet
howard?
Send
I
mean
emily's
he's
running
a
little
late
on
a
previous
call.
I'm
ashfar
are
you
here.
B
Hello,
okay,
dick
are
you.
D
B
And
that's
you
right
dave,
yes,
sir.
That's
great
and
I
am
drew
lanza
I
make
up
a
fifth.
We
have
a
quorum,
we
can
go
ahead
and
proceed
and
I'll
rerun.
The
roll
call
as
folks
join
in
progress
excuse.
A
Can
you
please
call
the
meeting
to
order.
B
Oh
that's
sort
of
thanks
today,
okay,
we're
in
order
wow
forgotten
broken.
No,
I'm
sorry!
Thank
you
linda
the
meetings
in
gold
order.
We
don't
have
a
closed
session
today.
So
do
start
right
with
the
open
session.
B
We
have
no
orders
of
the
day
per
se,
but
let
me
remind
ever
we
don't
find
a
way,
but
let
me
remind
everybody,
you
know
we're
on
zoom
and
so
the
one
thing
we
want
to
avoid
everybody
talking
at
once.
We've
never
had
a
problem
with
this
so
because
of
that
we're
a
little
less
formal
than
on
a
lot
of
zoom
calls.
If
you
have
a
question,
go
ahead
and
jump
in
that's
worked
very
well.
B
We
are,
we
are
required
to
do
roll
call
votes,
so
we
can
properly
record
that
and
we
will
do
that
and
for
weighty
matters,
none
of
which
we
have
today.
We
will
go
around
robin
to
make
sure
that
everyone's
heard
from
yeah.
As
I
said,
we
have
no
items
of
sunshine
to
wave
which
brings
us
to
the
consent
calendar.
Does
anybody
want
to
pull
anything
off
the
consent
calendar.
B
B
B
Okay,
dave:
how
do
you
vote
I
and
I'm
caroline's
I
vote
I
that
is
six
eyes
which
carries
the
day
believe
it
or
not.
This
has
to
be
some
kind
of
record,
but
we
are
turning
this
over
to
you
three
minutes
in
the
meeting.
Don't
get
cocky
over
to
you.
D
Well,
the
caffeine
hasn't
kicked
in
mr
chairman,
I'm
doing
my
best
good
morning,
everyone.
So,
let's
see
we
do
have
makita
and
newberger
presenting
performance
reports
this
morning,
but
before
I
turn
it
over
to
them
couple
of
notes
here
I
do
have
unofficial
unaudited
numbers
from
makita
as
of
the
day
before
yesterday
performance
fiscal
year,
to
date,
I'm
sure
you've
all
been
keeping
track
of
the
omicron
virus.
The
variant
there's
been
a
lot
of
volatility
in
the
market.
D
The
healthcare
trust
in
november
so
far
month
to
date
is
down
1.92
percent
and
but
fiscal
year
to
date.
This
is
from
july
1st.
It's
somewhat
flat.
It's
a
negative
12
basis
points
and
the
pension
system
is
the
pension
plan
november
month
to
date,
down
1.47,
but
fiscal
year
to
date
is
up
2.43
again.
These
are
just
rough
estimates
and
I
also
want
to
share
with
the
board.
On
november
9th
I
had
the
privilege
of
presenting
our
annual
fee
report
to
the
city.
Council
and
trustees
know
that
you
know.
D
In
years
past
I
have
been
accompanied
by
vince
trustee
cinzeri
to
actually
make
this
presentation
this
year.
I
was
very
kindly
accompanied
by
trustee
sunita
who
was
there
to
support
us
in
presenting
that
report,
and
there
were
no
surprises
there.
I
think
we've
done
a
lot
of
education
in
the
last
three
years
that
the
council
does
understand
that
fees
are
largely
driven
by
asset
allocation
and
the
types
of
investments
that
we
make
with
that.
D
Mr
chairman,
unless
there
are
questions,
I
would
like
to
turn
this
over
to
to
newburger
and
to
casey
boyer.
F
Hello
hi
good
morning,
everyone
I'm
in
dallas,
so
I
have
had
a
little
more
time
for
my
caffeine
to
kick
in,
so
I
will
go
ahead
and
get
started,
but
I'm
going
to
share
my
screen
so
give
me
just
a
minute:
oh
host
disabled
screen
sharing.
So
if
someone
could
enable
me
to
screen
share,
that
would
be
great.
F
F
I
just
had
to
be
patient.
Okay,
perfect
well.
I
am
here
today
to
go
through
q2
results
for
police
and
fire.
F
I'm
going
to
turn
to
the
summary
page,
which
is
really
most
of
the
information
I
can.
I
can
cover
here.
It's
been
again
a
really
great
quarter.
We've
also
recently
released
q3
information,
which
has
been
a
good
quarter
as
well,
so
we've
been
consistently
up
and
to
the
right.
F
F
F
We
saw
a
nice
uplift
there
in
q2
to
1.7
times
and
as
a
reminder,
this
is
all
net
information,
so
net
of
all
fees,
and
then
I
do
have
to
apologize.
The
net
irr
37.8
percent
listed.
There
is
a
mistake.
It
we
caught
this
last
night.
It
should
be
35.4,
so
we
are
going
to
update
that
and
make
sure
your
team
has
the
right
information
on
that.
One
still
really
good,
but
I
wanted
to
make
sure
to
point
that
out,
so
it's
not
to
be
misleading,
it
should
be
35.4.
F
F
Not
exactly
what
we
want
to
find
in
our
reports,
but
still
very
great,
and
we
will
take
35.4
any
day
of
the
week,
that
is
for
q2.
We
we
expect
q3
to
be
up.
I
guess
it's
already
released,
so
we
know
it's
it's
up
right.
F
Around
13
14,
so
we'll
see
some
great
returns
again
for
q3
when
we
come
back,
one
really
important
thing
that
doesn't
jump
out
when
you
just
look
at
this
page,
but
we
are
starting
to
see
a
lot
of
really
great
realizations
and
exits
within
portfolio
companies
and
co-investments
within
your
portfolio.
F
F
You
know
nine
and
a
half
million
over
the
q2
period.
I
went.
I
went
back
and
kind
of
looked
through
the
distributions
we've
done
recently
since
q2
through
november
we've
distributed
another
20
million
back
to
your
program.
So
I'm
really
excited
about
that
point
and
something
we
see
continuing
as
the
portfolio
develops
and
matures
and
investments
are
realized.
F
Turning
to
the
next
pages
pages,
three,
four,
five,
six
and
seven
look
through
the
underlying
investments
and
how
they
compare
to
their
peers.
So,
on
pages,
three
and
four
you'll
see
the
legacy
investments
which
were
completed
prior
to
the
new
burger
partnership
and
how
their
performance
relates
to
their
peers.
F
As
I've
said
before,
and-
and
I
think
you
all
know-
some
of
these
are
especially
on
page
three
are
fairly
old,
so
I
wouldn't
expect
their
performance
to
change
too
much.
At
this
point,
there
are
some
some
newer
ones
on
page
four
dating
back
to
vintage's
2018,
so
those
still
have
a
lot
of
runway
in
terms
of
gaining
on
their
performance.
Metrics.
F
And
page
five
is
where
we
start
the
newberger
partnership
I'll
I'll
point
out
a
couple
here,
because
there
always
tends
to
be
questions.
Investment
54
is
still
one
that
we
are
waiting
for
performance
to
start.
F
F
F
F
Turning
to
the
next
page
is
where
we
show
some
information
on
the
exposures
within
your
portfolio
more
at
an
underlying
basis,
so
our
goal
of
this
program
was
to
not
only
be
consistent
in
making
investments
each
vintage
year,
but
also
combining
the
use
of
primaries
co-investments
and
secondaries
into
the
portfolio
to
one
make
the
cat
the
the
fund
efficient
and
kind
of
produce
those
strong
early
returns,
which
we're
seeing
within
specifically
co-investments
you'll,
see
the
pie
charts
here,
based
on
the
committed
amount
as
well
as
invested
as
a
reminder,
commitments
means
those
are
the
commitments
we
have
made
to
date.
F
F
So,
as
I
mentioned,
we're
starting
to
see
the
really
great
performance
that
can
be
generated
from
using
investment,
different
investment
types,
so
you'll
see
the
co-investments
are
marked
at
a
1.93
times
and
the
primary
is
at
1.49
on
a
gross
basis.
F
That's
exactly
what
we
would
expect.
The
primaries
will
definitely
increase
over
time.
A
lot
of
those
primary
funds
are
still
investing
making
investments.
Some
have
made
realizations
but
they're
very
much
still
developing
and
maturing,
and
we've
frankly
seen
some
really
great
co-investment
returns
and
you'll
see
that
you're
really
starting
to
get
the
gross
dpi
is
the
distributions
compared
to
the
paid-in
capital
you're,
starting
to
see
some
some
great
numbers
there
in
terms
of
capital,
that's
being
distributed
back
to
your
fund.
F
And
then
at
the
bottom
here,
you'll
see
the
peer
comparison
so
currently,
second
in
terms
of
net
irr
and
I'll
just
again
point
out
3.7
not
correct.
It
should
be
35.4,
however,
that
still
keeps
you
squarely
in
the
second
quartile
that
actually
doesn't
change
that
metric.
So
second
quartile
and
first
on
the
total
value
to
paid
in.
F
The
next
couple
pages
are
a
lot
of
lots
of
information
about
the
underlying
investments,
I'll
turn
to
the
last
page,
which
at
the
very
bottom
splits
out,
I
can
make
it
a
little
bigger,
very
hard
to
see
the
specifics
around
the
legacy,
investments,
new
burgers
investments
and
then
the
total
amounts,
and
then
the
combination
there
great
great
performance.
I
would
say
we
still
have
a
lot
of
room
and
a
lot
of
time
for
that
to
continue.
F
But
I
think
at
this
point
I'll
open
it
up
to
questions.
If
anyone
has
any.
C
So
a
couple
of
questions
you
in
in
the
summary
tables
you're,
showing
things
net
of
fees-
maybe
I'm
just
so
fresh
after
the
fees
presentation
that
I
focus
on
it,
but
I'm
curious
on
the
on
the
more
detailed
ones.
You
show
a
gross
irr
number.
F
Yeah,
so
when
you're
looking
at
investments
at
like,
for
instance,
the
page
that
we're
on
page
11
the
schedule,
investments
you're,
seeing
the
investments
one
by
one
and
under
these
are
the
underlying
investments
within
your
portfolio.
F
Gross
here
means
that
it
is
gross
of
new
burger
fees,
but
it's
actually
net
of
those.
Oh
okay
funds
fees,
so
we're
it's
a
little
unclear
using
the
word
gross
simply
because
our
fees
aren't
applied
at
an
underlying
level,
it's
more
of
at
a
program
level.
So
it
doesn't
really
make
sense
to
you
know,
split
out
our
fees
by
investment,
but
you
are
seeing
this
net
of
those
fees.
C
I
understood
okay,
I
did
see
the
footnote
that
said:
nb
fees.
Not
I
understand
that
yeah.
Yes,
one
other
question:
is
there
a
way?
Is
there
a
sense
on
or
a
monitoring
of
I
mean
I'm
not
sure
what
might
be
the
terminology
in
the
private
equity
world,
but
in
terms
of
aging
of
primary,
so
to
speak
that
the
time
from
when
we
make
a
commitment
to
where
they've
started,
funding
or
something
like
that
where
we
are
paying
fees
but
not
really
benefiting
from
them?
H
F
Being
very
cautious
in
their
deployment
being
very
careful
on
on
what
investments
they're
making
we
talked
to
that
gp,
regularly,
we've
done
co-investments
with
them
before
we
go
to
their
annual
meetings,
so
we're
very
up
to
speed
on
what
investments
they're.
Looking
at,
why
they've
declined
certain
investments
that
particular
gp
has
gotten
very
far
along
in
the
process
on
a
couple
of
assets,
but
actually
got
outbid
just
based
on
valuation.
F
So
there's
lots
of
reasons
why
they
may
be
slow
to
deploy.
Sometimes
it's
actually
a
good
thing
frankly,
because
we
don't
want
them
to
be
paying
higher
valuations
than
they're
comfortable
with.
So
we
monitor
each
underlying
investment
and
and
making
sure
that
we
are
understanding
their
strategy
and
why
they
are
at
the
pace
that
they
that
they
are.
C
If,
if
we
have
committed
70.5
70
in
primaries
and
only
53
percent
is
invested-
or
I
know
it's
not
50
of
the
70,
but
in
terms
of
the
differences
between
the
left
and
right,
I
guess
the
question
I
have
is
at
what
point
do
we
feel
like?
Oh
gosh,
there
they've
made
a
commitment,
but
we're
not
sort
of
really
deploying
the
funds.
F
Yeah,
so
what
you're
actually
seeing
there
is,
I
I
turned
back
to
look
at
some
of
these
benchmarking
slides
just
to
point
out.
F
F
So
if
we
went
back
a
few
years,
if
we
just
showed
a
pie
chart
based
on
let's
say
vintage
year,
2017
that
would
look
much
different.
We
would
expect
committed
to
look
very
similar
to
invested
really
what
this
chart
is
showing
is
that
we're
continuing
to
commit
capital
over
time,
and
it's
just
inherent
that
you
are
going
to
have
a
kind
of
a
mismatch
between
what's
committed
and
what
is
invested.
F
We
definitely
keep
track
of
that
and
make
sure
that
investments
are
are
investing
and
what
we
would
think
that
they
would
do.
C
B
Thanks
any
other
questions
for
casey.
B
Well,
welcome
let
the
record
show
that
trustee
lee
is
now
online
thanks.
You
go
howard,
sorry.
D
I'm
sorry
I'm
late
well.
Thank
you.
Thank
you,
casey
for
the
description.
I
had
actually
two
questions
with
respect
to
the
the
one
that
you
mentioned,
which
was
investment
number
54,
and
you
mentioned
the
gps.
You
know
them
well,
is
their
track
record,
presumably
better
than
where
they
are
today.
In
other
words,
we
expect
them
to
be
second
quartile
of
first
first
quartile.
Is
that
the
expectation.
F
Yeah,
their
their
historical
track
record
is
very
good.
They
have
proven
themselves
in
being
able
to
take
investments
and
turn
them
around.
We've
actually
made
a
co-investment
alongside
of
them,
that
was
in
kind
of
an
office
supply
company.
F
They
did
a
lot
of
things
to
kind
of
take
that
company
and
they
kind
of
sold
some
some
assets
that
weren't
doing
so
well
and
were
able
to
realize
and
and
send
capital
back
pretty
quickly,
but
we
still
have
it
on
our
books
right
now.
It's
it's
still
doing
very
well,
so
we
have
confidence
in
them,
they've
they've
performed
in
the
past.
F
This
is
fund.
The
2017
vintage
is
fund
three
for
them,
so
we
had
prior
history
to
make
that
investment
and
felt
confident
about
the
lead.
Investor
here
has
been
in
the
industry
in
the
consumer
industry,
basically
his
whole
career.
So
we
have
a
lot
of
confidence
in
their
leadership
and
have
every
reason
to
believe
that
this
this
will
turn
around.
D
Okay,
you
know-
and
I
guess,
because
there's
special
situations
and
because
evaluations
are
high,
they're
they're,
losing
deals
because
of
that
okay
and
then
57
stars
global
seems
like
it's
underperforming
and
just
in
general,
have
you
ever
made
recommendations
on
pruning.
H
So
selling
selling
interests.
A
Yeah
so
actually
trustee
lee
in
regard
to
the
legacy
portfolio,
the
police
and
fire
plan
actually
did
execute
a
secondary
sale
as
of
june
30th
of
this
year.
So
we
did
find
an
opportunity
where,
when
we
look
at
the
go
forward
returns
of
some
of
these
more
legacy
investments,
they
had
less
forward-looking
return
expectations
than
what
we
would
expect
from
new
investments
that
we
can
make
through
the
new
burger
fund
of
one
program,
and
we
ended
up
actually
executing
a
secondary
sale
on
four
different
funds
from
the
legacy
portfolio.
D
Okay,
all
right
all
right!
Thank
you!
Thank
you
and
then
one
last
thing
I
think
the
trustee
gonopoli
potty
mentioned
about
the
committed
versus
deployed.
Is
there
a
is
that
maybe
you
can
put
a
column
here
or
something
about
you
know,
capital
called
versus
commitment,
or
some
I
don't
know,
maybe
just
to
make
it
easier
to
understand.
A
H
Good
morning,
everyone,
I
hope
you
all
had
a
nice
thanksgiving
jared
is
going
to
share
the
screen
with
the
private
markets
report.
H
Thank
you
jared,
so
on
slide.
Two.
We
have
the
summary
here.
This
does
reflect
the
correct
newberger
berman
fund,
one
irr.
H
There
are
many
quarters
where
new
burgers
report
is
correct
and
ours
is
not
so
so
you
know
it's
nice
to
have
a
couple
of
providers
here,
since
it's
always
possible
that
these
excel
spreadsheets
have
small
errors
and
and,
as
your
new
burger
consultant
pointed
out,
still
a
phenomenal
return
at
35.4
for
the
irr,
and
you
can
see
each
of
the
asset
classes
here
in
the
private
market,
space
and
private
equity,
private
debt,
real
estate,
real
assets
and
the
newest
venture
capital.
H
So
it's
a
a
difficult
calculation,
but
we
think
it's
useful
to
show
what
you
would
have
made
if
you
hadn't
been
in
illiquid
assets,
and
you
can
see
that
for
the
most
part
it
has
been
a
good
decision
to
put
these
funds
into
private
markets.
The
irr
for
your
program
for
each
of
the
areas
is
higher
than
what
the
public
markets
equivalent
would
have
been
we'll
start
out
with
private
debt
on
slide.
Three.
H
You
can
see
here
that
the
target
is
three
percent
and
your
allocation
is
currently
3.1,
so
very
close
to
target,
and
if
you
take
a
look
at
the
next
slide
here,
you
can
see
that
the
distributions
now
are
dwarfing
the
contributions
and
the
main
reason
for
that
is
that
most
of
the
funds
were
committed
back
in
2010,
and
you
can
see
that
on
slide
six.
H
You
can
see
each
individual
fund
here,
as
we've
discussed
these
two.
These
top
three
funds
committed
in
2010
were
not
really
intended
initially
to
be
part
of
the
private
debt
allocation.
They
were
opportunistic
at
the
time
they
have
not
performed
per
expectations.
But
if
you
take
a
look
at
all
the
funds
that
that
had
been
committed
recently,
and
particularly
those
under
your
current
staff
since
2017,
they
are
doing
quite
well.
H
If
you
take
a
look
at
arrowmark,
orberlane
octagon
across
ocean
all
about
two-thirds
of
the
way
down
the
slide,
all
of
their
irrs
are
significantly
higher
than
the
peer
irrs.
H
And
you
see
this
program
has
had
a
you
know:
sort
of
a
steady
pace
of
vintage
year
diversification
since
those
those
initial
funds,
and
that
is
shown
on
the
next
slide
as
well.
It's
always
nice
to
see
this
upper
right
pie
chart
and
the
percent
of
exposure
looking
quite
diversified.
That
means
that
the
the
program
is
maturing.
H
H
The
real
assets
program
is
on
the
next
slide,
and
you
can
see
here
that
there
were
a
couple
of
funds
committed
back
in
2016
and
that's
still
the
bulk
of
the
exposure,
primarily
in
the
infrastructure
space,
some
more
in
2019
and
then
we're
trying
to
to
staff
is
trying
in
working
with
us
to
to
maintain
again
that
vintage
year
diversification,
we
can
take
a
look
at
slide.
11
for
the
individual
funds
in
the
real
assets
program.
Real
assets
has
been
a
little
bit
of
a
challenging
space.
H
You
had
some
fluctuations
with
oil
prices.
You
also
had
some
infrastructure
related
issues
relating
to
the
pandemic.
Infrastructure
investments
often
tend
to
be
in
areas
like
airports
and
toll
roads
and
shipping,
and
those
have
all
been
areas
that
were,
you
know,
negatively
impacted
at
some
point
from
the
pandemic.
But
you
still
see
some
strong
absolute
returns
here:
brookfield
infrastructure,
the
top
one
with
an
irr
well
above
the
peer
irr,
gip
infrastructure
partners
and
lime
rock,
which
is
more
energy
related
below
the
peer
irr,
but
still
with
a
positive
return.
H
So
you
have
a
lot
of
funds
here
that
were
committed
in
2019
and
2020
that
are
performing
to
expectations,
but
don't
have
a
meaningful
internal
rate
of
return.
Yet
the
real
estate
program,
I
will
move
ahead
to
on
page
13..
This
is
a
mature
program.
You've
been
committing.
You
can
see
relatively
regularly
since
2012,
although
there
were
some
years
skipped
in
there
and
and
recently
your
staff
and
makita
have
been
trying
to
again
maintain
that
vintage
year
diversification.
That's
so
important
with
more
regular
commitments
on
the
next
slide.
H
H
You
can
see
a
wide,
diverse
variety
of
funds
here
and
again
that
that
you
know,
if
you
look
at
the
vintages,
pretty
steady
allocations
and
for
the
most
part,
these
funds
in
the
real
estate
space
have
had
relatively
strong
returns
meeting
expectations
on
17.
You
can
see
the
exposure
by
vintage
year
and
and
and
geography
again
we
like
to
see
that
upper
right
pie
chart
you
know
quite
diversified
and,
and
it
is
on
track
to
do
that.
H
Lastly,
you
have
the
newest
part
of
the
private
markets
program
on
page
18,
the
venture
capital
program.
You
can
see
the
commitments
that
were
made
during
2020,
one
new
one
on
page
19,
innovation,
endeavors
with
a
40
or
I'm
sorry,
a
4.2
million
dollar
commitment
and
the
individual
funds,
four
of
them
thus
far
on
page
21.,
all
of
them
2020
or
2021
funds.
So
we
don't
have
meaningful
performance
yet
for
them,
starting
on
page
23.
H
I
won't
go
through
page
by
page,
but
if
you're
interested
in
the
dynamics
of
different
parts
of
the
private
markets
investing
universe,
we
have
some
information
on
those
asset
classes
in
general,
things
like
private
equity,
fundraising,
usage
of
ports
and
some
real
estate
metrics
as
well.
B
D
Yeah,
can
I
get
started,
drew.
D
D
Second,
I
guess
question
for
prabhu.
Maybe
you
know
I
guess
the
realizations
are
great,
but
I
think
if
they're
kind
of
coming
in
rapidly
or
ahead
of
expectations,
the
question
is:
how
do
you
redeploy
it
and
you
know
what's
the
plan,
so
you
don't
skew
kind
of
the
asset
allocation
right.
A
Hey
sorry,
this
is
dinesh
and
I
can
help
answer
that
question.
So
it
has
been
accelerated
pace,
especially
for
the
private
debt
program.
However,
a
lot
of
the
funds
that
we've
been
investing
in
and
as
they're
modeled
in
the
pacing
plan
are
for
shorter
deployment
periods.
So
it's
slightly
ahead
of
what
we
had
expected,
but
not
significantly.
So
so
I
think
we're
continuing
our
our
process
and
we
do
have
a
good
pipeline
of
new
investments
that
we're
looking
at
to
replace
these
and
based
on
the
pacing
plan.
A
Since
these
are
multi-year
investment
periods,
the
the
realizations
don't
skew
the
the
program
as
much
as
possible.
So
when
we
look
at
our
overall
allocation
to
private
debt,
we're
only
about
20
basis
points
below
the
three
percent
target
and
with
new
capital
calls
that
were
that
are
expected
and
new
commitments
that
are
being
made.
We
expect
to
maintain
our
exposure
close
to
three
percent
target.
D
Okay,
thank
you
dinesh,
the
last
question.
You
know,
I
guess
you
know
the
absolute
performance
on
you
know.
Private
investments,
you
know
is
strong,
but,
as
I
scan
kind
of
you
know
kind
of
some
of
the
numbers
I've
seen
and
possibly
there
are
maybe
more
endowments
here
right.
D
You
know
you've
seen
some
eye-popping
numbers
which
are
much
higher
than
kind
of
what
we
did
right
and
also,
if
I
looked
at
the
fiscal
y,
you
know
fiscal,
your
last
fiscal
year,
performance
against
strong
numbers,
but
it
looked
like
they
were
behind
kind
of
the
peer
group.
Is
that
a
question
of
kind
of
a
mix
of
investments?
What
what?
What
might
be
the
reason
for
that?
D
That's
that's
a
great
question!
Trustee,
menon
and
I'll
have
laura
jump
in
as
well.
In
fact,
we
did
look
at
that.
You
know
we've
done
well
relative
to
our
peers
in
in
the
public
space,
but
we
have
trailed.
You
know
the
endowment
world
and
I
think
it's
a
function
of
asset
allocation
right,
and
so
they
had
they
have
significantly
higher
allocation
to
private
assets
and
especially
the
venture,
and
so
I
think
that
made
the
difference
in
the
last
fiscal
year.
D
The
the
reason
why
you
know
some
of
these
university
numbers
are
really
eye-popping
right,
40,
50,
returns
and
and
again
it's
a
matter
of
asset
allocation.
I
think
I
think,
compared
to
our
peers.
I
think
we
have.
We
have
a
little
bit
more
than
the
average
pension
plan
in
terms
of
private
assets,
but
compared
to
the
endowment
world.
You
know.
H
Yeah,
that's
right.
You
know
we
did
look
at
this
along
with
prabhu,
because
we
were
all
interested
in
in
looking
at
you
know.
You
see
these
headlines
from
pensions
and
investments
and
fun
fire
with
you
know
x,
university,
return,
68
or
something
like
that
for
the
year,
so
we
pulled
together.
We
looked
at,
let's
see
like
six
or
seven.
You
know
that
we
were
able
to
find
you
know
endowments,
don't
don't
necessarily
always
release
a
ton
of
specifics,
like
public
funds
do
on.
H
You
know
their
underlying
asset
allocation,
but
we
we
looked
at.
You
know
some
high
performing
funds
that
had
a
fiscal
year
return
of
around
49
and
what
we
found
is
that
your
total
equity
for
the
san
jose
funds
was
very
similar
to
these
funds.
So
you
all
are
on
the
right
track,
but
we
did
find
that
the
highest
performing
funds
had
much
higher
allocations
to
private
equity,
and
you
know
they
don't
always
report
how
much
of
that
is
venture
capital
sort
of
reading
between
the
lines.
H
B
Sorry
I
was
a
mute
floor
still
open
anybody
else.
Questions
for
laura.
D
Yeah
hi
hi.
This
is
howard.
Just
one
quick
question.
I
may
have
missed
this
when
you,
when
you
describe
the
differences,
the
the
nb
fund
of
fund,
the
irr
was
37.8
or
35.4.
H
D
D
H
You
I'm
actually
going
to
turn
it
over
to
jared
to
talk
about
the
total
fund
pension
fund
performance.
J
Thanks
laura
good
morning,
everybody,
that's
the
we'll.
Just
do
a
quick
review
of
markets
here
for
the
fourth
quarter.
There's
a
pretty
odd
thing
on
this
chart
on
page
four.
That
shows
that,
apparently,
the
u.s
stock
market
doesn't
go
up
10
every
quarter,
so
it's
the
first
time
we've
we've
shown
a
chart
with
more
muted
returns
since
since
march
report
of
2020.,
but
consistent
with
last
quarter,
commodities
led
the
way
here
up,
6.6
and
then
tips
was
the
second
leader.
J
So
you
see
the
impact
of
inflation
there,
like
I
mentioned
the
u.s
markets,
basically
flat,
depending
which,
which
one
you
want
to
look
at
in
the
middle
and
on
the
bottom
side
the
market
didn't
do
as
well.
Emerging
markets
stands
out
mostly
dragged
down
by
china
and-
and
you
know
headlines
around
evergrand
small
caps
also
didn't
do
very
well.
J
On
page
five,
I
guess
there's
obviously
a
lot
of
numbers
here,
but
if
you
look
at
the
three-year
column
in
particular,
I
think
it's
interesting.
That
shows,
if
you
just
look
at
the
domestic
equity,
to
pull
out
something
like
russell
3000.
It's
basically
double
the
return
of
indices.
You
look
at
in
the
foreign
equity
section
and
it's
tripled
the
the
return
of
a
lot
of
the
fixed
income
indices.
J
So
I've
talked
about
that
before.
But
that's
you
know
a
bigger
difference
than
we've
seen
in
the
past
toward
the
bottom.
As
you
look
at
fixed
income.
It
also
note
that
you
know
pretty
muted
returns
for
a
lot
of
broad,
fixed
income
markets,
but
things
like
high
yields
and
tips
did
well.
So
your
exposure
there
certainly
helped,
and
if
I
move
to
the
plan
itself,
starting
on
page
24.,
so
here
you
see
4.9
billion
in
assets.
That's
up
about
200
million
from
june
30th.
J
J
So
there's
you
know
more
muted
returns
here
for
the
quarter
and
absolute
terms,
but
still
ahead
of
benchmarks
and
top
quartile
in
the
peer
group.
That's
for
the
quarter
for
the
one
year
also
strong
numbers
versus
benchmarks.
I'd
highlight
public
equity
here
kind
of
in
the
middle
for
the
one
year
period.
J
Some
nice
alpha
from
the
managers
with
140
basis,
points
about
performance
versus
the
index
and
I'll
highlight
one
of
those
here
on
page
30
at
the
very
top.
Here
you
see
artists
and
global
opportunities,
it's
one
of
the
larger
weights
to
a
single
manager
in
the
portfolio
at
seven
percent,
and
it
did
really
well
here.
You
know
top
decile
for
the
quarter
and
also
top
death
style
since
inception.
So
some
great
stock
selection
from
artisan
on
page
31
I'll
just
highlight
emerging
markets
as
a
whole.
J
If
you
look
at
the
gray
bar,
you
see
some
nice
alpha
versus
the
benchmark
for
the
quarter
as
well
as
for
the
year,
a
lot
of
that
likely
due
to
underweights
to
china,
which
is
something
that
christina
mentioned
in
a
previous
meeting
and
I'll
skip
ahead
to
page
45,
just
to
look
at
and
has
made
this
march
toward
5
billion.
K
J
Recapped
earlier
you
see
140
million
of
net
cash
inflows
and
another
strong,
healthy
gain
of
56
million
investment
gains
to
end
up
close
to
4.9
billion
and
then
finally
I'll
stop
comments
on
page
53
just
to
look
at
the
three-year
history
here.
I
know
we
talk
about
this,
this
page
a
lot,
but
the
three-year
history
is
very
impressive
in
terms
of
being
top
third
for
the
pure
group
in
performance,
but
also
much
stronger
than
the
than
the
pure
group
and
standard
deviation
as
well.
J
J
Okay,
I'll
keep
going
if
that's
okay,
so
here's
the
healthcare
trust
that
we'll
cover
quickly
on
page
22,
we
have
total
assets
of
275
million,
it's
up
80
million
from
a
year
ago.
J
The
allocations
are
closer
to
target,
as
jay
mentioned
to
us
september.
30Th
shows
an
overweight
to
cash
and
an
underweight
to
real
estate,
but
the
following
day
on
october
1st
that
adjusted
itself
because
cash
went
to
capital
calls
to
core
real
estate.
So
the
allocations
are
in
fact
closer
than
this.
This
may
go
on
page
23.
J
As
far
as
showing
the
benchmark
itself,
you
know
the
attribution
is
somewhat
limited
in
how
it's
able
to
calculate
and
explain
differences,
but
some
of
it
was
an
underweight
to
real
estate,
which
was
on
october
1st
that
that
underweight
was
was
brought
up
and
then
also
some
underperformance
from
the
commodity
strategy.
J
But
if
I
just
stop
here
on
page
27,
you
can
see
some
of
the
details
of
the
commodity
strategy.
It
didn't
do
as
well
for
for
some
of
these
more
recent
periods,
but
it
has
done
quite
well
on
a
relative
basis
over
longer
periods.
B
If
not
back
to
you
prabhu,
you
wanna
wrap
up
with
any
comments
there.
B
Usual
excellent
job
jared,
laura
casey.
As
always,
it's
really
a
pleasure
to
have
you
on
our
team.
D
I
think
drew
if
I
might
just
just.
B
D
Yeah,
so
the
thing
I
would
say
prabhu
is
maybe
next
as
we
go
into
asset
allocation
for
next
year.
Maybe
we
spend
a
little
more
time
on
the
healthcare
trust
you
know
compared
to
what
we
usually
do,
because
it
seems
to
have
at
least
a
measure
of
underperformance
compared
to
the
plan.
D
B
Great
this
is
obviously
it
could
be
a
pretty
short
meeting.
If
you
read
the
agenda,
we
don't
have
any
old
business
to
continue.
I
know
that
the
city
has
applied
to
the
court
for
permissioned
issue
of
pension
bond,
whether
they
will
or
won't
is
the
whole
of
the
matter.
B
Oh
I'm
sorry,
that's
from
berto
thanks
for
reminding
me
by
the
way
the
floor
is
open.
When
I
open
the
floor,
if
the
public
has
any
comments,
I
I
I
would
expect
to
see
some
of
the
public
raise
a
hand
per
se
or
to
just
jump
in
I'll
thanks
for
keep
reminding
me
to
do
that.
No
business,
so
new
business
revert
over
to
you.
K
K
I
believe
it
went
smoothly
compared
to
some
of
the
challenges.
Last
year,
when
there
was
a
change
in
providers
borderline
was,
we
did
have
staff
not
only
at
the
office
but
also
obviously
working
remotely.
K
To
answer
questions
we
received
about
700,
open,
enrollment
change,
forms
about
60
of
those
change
forms
where
really
health
and
dental
elude
those
are
members
that
are
entitled
to
the
healthcare
benefit,
but
because
they're
covered
under
someone
else,
they
just
request
the
in-laws
someone
somewhat
of
as
a
credit,
so
in
the
future,
when
they
start
using
it,
they
can,
they
can
have
that
credit
and
they
donate
40
were
actual
health
benefits
changes.
K
I
also
wanted
to
let
you
know
that
just
this
week
on
monday,
we
welcome
a
new
benefitstat
specialist,
gretel
calderon,
so
welcome
to
the
team
gradual.
We
look
forward
to
working
with
you.
K
We
do
have
some
vacant
positions,
we
still
have
to
staff
specialist
positions
and
we
do
have
two
positions
in
the
information
technology,
including
a
network
analyst,
and
so
with
the
city
lifting
the
hiring
freeze.
We
certainly
are
working
diligently
on
the
process
with
the
hr
at
the
city
to
start
the
process
of
searching
for
those
four
positions.
K
I
also
wanted
to
mention
that
with
the
holiday
coming
on
the
city,
our
offices,
which
are
actually
not
open,
yet
they
will
remain
closed
for
the
december
23rd
and
24th
days
on
december,
30th
and
31st,
which
are
actually
holidays
under
the
city
calendar
we'll
we'll
have
a
very
small
staff
here
for
the
closure
of
the
week
of
december
27th,
28th,
27th,
28th
and
29th.
K
Lastly,
I
wanted
to
mention
a
couple
of
things:
one,
as
you
know,
we're
still
working
with
the
city
clerk
on
on
filling
the
position
that
was
vacated
with
from
the
resignation
of
one
of
your
longest
tenure
members
of
vincent
service,
so
we're
still
working
with
the
city
clerk
on
on
that
process
and
also
the
seat
for
the
police
active
day.
Wilson
is
coming
up
on
november
november
30th.
I
believe
he
reapplied
for
the
position.
K
The
city
clerk
is
going
to
kick
off
the
process
right
after
that,
and
he
will
remain
a
trustee
until
either
he's
reappointed
or
in
depending
on
how
many
members
are
applying.
If
he's
not
reappointed,
then
whenever
the
city
council
appoints
a
new
member
and-
and
lastly,
I
I
share
with
all
of
you
a
couple
of
weeks
ago-
a
communication
that
I
sent
out
to
our
staff
on
our
thoughts
on
on
how
we're
going
to
slowly
but
surely
work
our
way
back
to
the
office.
K
We
are
still
very
flexible
from
the
standpoint
that
if
we
have
any
staff
that
have
any
potential
issues-
or
you
know
that
that
they're
not
able
to
attend
the
office,
we're
working
with
them
to
make
sure
that
they
can
continue
working
remotely.
K
Also
the
office
continue
being
closed.
But
again
we
do
have
a
small
staff
here
on
a
daily
basis
and
we
are
also
implementing
the
appointment
process.
So
we
are
actually
in
fact
accepting
appointments
through
online
or
by
phone
from
members.
So
when
that
happens,
and
a
member
shows
up
at
the
office,
we
open
the
door
for
them.
K
The
the
office
is
not
open
yet,
but
depending
on
how
that
works
out
generally
at
some
point
and
the
appointment
process.
At
some
point,
we
are
possibly
going
to
be
opening
to
the
public,
even
if
it's
not
eight
to
five
a
more
concise
number
of
hours,
from
like
ten
to
two
or
ten
to
three.
Of
course,
you
all
heard
of
the
most
recent
copy,
19
variants.
So
again,
this
is
a
very
fluid
situation.
K
If
you
remember
my
communication,
I
indicated
that
we
certainly
are
going
to
be
keeping
track
of
coming
19
so
that,
if
anything,
changes
as
you
know
in
the
u.s,
they
discovered
the
first
case
yesterday
in
california,
which
I
believe
it
was
actually
here
in
the
bay
area,
and
so
we
will
keep
you
posted
if
we
make
any
changes
to
those
plans.
We
certainly
share
that
not
only
with
our
members
and
the
public,
but
also
with
all
of
you
with
that.
That
concludes
my
update.
Mr
share.
L
Yeah
to
roberto,
I
got
the
pamphlets
you
know
in
the
mail
talks
about
our
benefits,
talk
about
some
of
them,
your
personnel
and
their
background.
I
thought
they
were
very,
very
helpful.
Everything
seems
to
be
going
well
in
communication
with
the
retirees
we
want
to
say
thank
you
roberto
and
you
and
the
staff.
K
Thank
you
dave.
We.
We
are
glad
to
hear
that
I
think
you're
referring
to
the
quarterly
newsletter
and,
of
course,
we're
going
to
be
sending
a
new
one
next
month,
which
we
are
planning
to
include
staff
from
the
investment
function,
as
well
as
providing
some
update
on
our
plans,
bringing
staff
back
to
the
office.
So
thank
you.
We
appreciate
that.
L
You're
welcome
and
also
when
it
comes
to
this,
I
think
this
called
medicare
b,
where
we
get
some
reimbursement.
I
think
we
have
to
give
the
social
security
part
b.
That
needs
to
be
publicized
as
much
as
you
can,
prior
to
turning
that
in.
G
Thank
you
drew
good
morning,
everyone
and
happy
thanksgiving
a
week
late.
I
hope
you
all
enjoyed
your
time
with
family
and
friends
and
time
off
for
a
few
days,
just
we
we're
moving
into
a
really
busy
council
session
as
we
wrap
up
before
the
end
of
the
year.
The
what
some
of
the
things
that
we're
working
on
is
redistricting
is
really
a
a
big
topic
right
now
we
have
three
public
hearings.
The
first
one
was
held
this
just
this
tuesday
november
30th.
G
The
next
one
is
on
the
seventh
and
followed
by
one
on
the
14th,
the
decision
on
the
redistricting.
There
are
three
maps
that
are
being
presented,
although
two
are
really
gaining
any
type
of
input
from
the
community
and
one
is
called
the
community
map.
G
The
other
is
called
the
unity
map,
so
we're
taking
a
look
at
how
they
impact
our
various
districts
and,
of
course,
we're
all
looking
to
our
self-interest,
not
our
self-interest,
but
the
self-interest
of
our
district
to
see
how
much
we
gain
or
lose
every
district
must,
or
at
least
my
district
is
one
of
the
lower
resident
counts,
because
there's
not
a
lot
of
development.
In
district
nine,
so
I'm
going
to
have
to
gain
about
6
000
residents.
G
So
the
I
haven't
made
a
decision
on
the
maps
one
way
or
the
other.
There
are
good
points
in
both
the
community
map
and
the
unity
map
and
there's
some
problems
on
both
maps
as
well.
So
it'll
be.
I
look
forward
to
what
the
committee
the
city
council
has
to
say
when
we
get
a
chance
to
weigh
in,
we
haven't
had
that
opportunity.
Yet
the
other
thing
a
couple
other
things
that
the
district
at
the
city
level
is
sb9.
G
You
may
have
heard
about
that.
That's
the
state
law
that
the
governor
passed
or
signed
into
law,
but
we
must
implement
by
january
1st,
and
what
sb9
requires
is
that
lots
of
I
think
2500
square
feet.
That's
the
parcel
size
can
be
split
into
and
duplexes
can
be
constructed
on
both
sides
of
the
new
lot
split
we
will
on
december
14.
This
is
this.
Is
a
concern
for
many
in
our
communities
as
they
don't
want
to
see
higher
density
without
consideration
for
infrastructure,
water
power
parking?
G
G
So
city
council
has
to
implement
it,
but
how
we
implement
it
is
up
to
us
slightly
we'll
find
out
in
a
week
or
so
what
that
really
means,
but
they're,
I
think
the
the
fear
or
the
concerns
about
sb9
are
not
necessarily
real
yet
because
the
cost
to
buy
land
or
buy
a
property
and
then
split
it
is
expensive
and
then
the
cost
to
develop
is
expensive.
G
G
The
other
thing
and
roberto
brought
this
up
a
little
bit
is
in
his
looking
to
fill
staffing
positions.
That
is
a
chronic
problem
throughout
the
city,
we're
losing
staff
to
retirement,
we're
losing
staff
to
additional
neighboring
jurisdictions.
Who
can
pay
more?
G
We
have
a
hard
working
staff
that
we
need
to
figure
out
a
way
to
retain,
and
we
also
need
to
figure
out
a
way
to
recruit.
There's
certain
areas
like
code
enforcement,
like
planning
other
areas,
the
department
of
transportation
have
huge
retirements
or
people
who've
left
that
are
causing
flows
of
work,
work
to
be
really
diminished.
So
I'm
working
with
the
city
manager's
office
to
try
to
come
up
with
creative
ideas
on
recruiting
and
retention.
So
if
you
have
any
ideas,
please
let
me
know.
G
The
final
thing
I
will
leave
you
with
is
that
thank
you
drew
for
the
letter
from
you
regarding
mental
health
benefits
for
our
retirees
we
have.
I
have
discussed
that
with
the
city
manager
and
her
chief
city
manager,
assistant
city
manager,
lee
wilcox,
and
there
are
some
steps
we
have
to
work
through
that
we're
working
through
and
you
know,
like
any
government
thing,
I
don't
expect
a
quick
response,
but
thank
you
for
the
letter
that
will
be
helpful
and
we're
gonna
going
to
continue
to
work
through
it
still.
G
There
is
some
question
whether
that
initial
benefit
needs
to
bargain
be
bargained,
whether
the
voters
need
to
approve
it
there's
a
lot
of
different
things,
but
I
I
don't
want
you
to
think
that
I've
lost
attention
on
it.
It's
on
the
forefront
of
one
of
my
policy
issues,
so
I'll
keep
pushing
and
trudging.
Along
with
that.
With
that,
I
wish
you
all
a
happy
holiday
and
we'll
take
any
questions.
If
you
have
any.
B
That's
good
floors,
lovely
jumper,
real
quick
for
those
of
you
that
don't
know
pam
started
off
by
talking
about
sb9
and
you
can
split
lots
and
you
may
think,
oh
great
sacramento's
up
to
stuff,
but
it
was
a
very
interesting
bill
and
like
the
bill
before
that
granted
accessory
drawing
unit
rights,
there's
I
just
reread
the
bill.
B
There
is
a
ministerial
fiat
provision
just
so
you
guys
know
which
why
pam
brought
this
up,
that
forces
san
jose
and
the
county
of
santa
clara
to
grant
these
permits,
and
I
think
it's
you
might
know,
pam
if
the
city
or
county
drags
their
feet
and
doesn't
grant
it
within.
I
think
it's
six
months,
then
you
can
just
go
ahead
and
build
right
and
that's
ministerial.
G
We
have
to,
we
will
adopt
something
where
we
do
have.
Flexibility
is
setbacks
and
potentially
other
areas.
People
are
really
concerned
that
we're
going
to
be,
but
people
will
be
able
to
divide
lots,
build
a
duplex
on
each
side
and
then
two
adus
I've
heard
conflicting
information
from
that
on
by
from
real
estate
attorneys,
who
haven't
come
down,
whether
that's
accurate
or
not.
So
it's
it's
very.
G
It's
a
concern
because
it
takes
away
the
local
control
over
these
development
issues
and
makes
it
a
ministerial
process,
as
drew
said,
but
I
wasn't
familiar
with
the
six
months
so,
but
we're
gonna
adopt
something
so
we're
not
going
to
let
that
happen.
Yeah.
L
First
of
all,
council
member
foley,
thank
you
for
that
brief
and
excellent
report.
I
know
your
plate
is
full.
We
go
through
the
sending
in
the
water
district
in
terms
of
redistricting.
You
can't
make
everybody
happy
it's
a
difficult
job.
L
Sb9
is
also
you're
right
about
having
infrastructure,
so
I
god
bless
you
when
making
the
decisions,
but
I
want
to
make
a
comment
during
all
that
tough
decisions,
you're
making
you
have
time
to
be
sensitive
to
the
retirees
need
about
these
benefits
in
terms
of
recent
deaths,
and
things
are
happening
to
the
retirees
we
want
to
say.
Thank
you
for
keeping
it
going.
It's
very
sensitive.
It's
very
difficult,
I
know,
always
takes
funding,
but
we
appreciate
you
staying
on
top
of
this.
Thank
you.
B
If
not
rich
I'll,
leave
you
a
review.
If
you
want
to
make
any
introductions
before
you
kick
off
chiron.
K
The
first
one
which
is
4c
is
the
preliminary
pension
valuation
results
based
on
your
bore
economic
assumptions,
decisions
at
your
last
meeting
that
will
be
presented
by
bill
hallmark
and
then
the
second
one
is
the
discussion
and
action
on
other
post-employment
benefits
methods
and
assumptions
to
be
presented
by
chiron,
michael,
so
that
your
board
can
make
those
decisions
and
kevin
can
go
ahead
and
perform
the
preliminary
evaluation
for
the
healthcare
plan
and,
as
you
may
recall,
this
is
the
year
that
also
we
have
sequel
company,
another
another
company
that
does
actual
work
auditing,
the
work
and
the
process
by
cairo
on
both
plans,
pension
and
health
care,
and
so
you
will
be
hearing
from
seagull
next
year
in
january
and
february
on
their
audits
for
the
pension
plan
and
the
health
care.
B
B
Yeah
I'm
looking
yeah,
we
can.
We
can
just
hey,
but
let's
take
a
let's
take
a
quick
five
minute
break.
I'm
really
gonna
want
to
grab
something
a
cup
of
coffee
or
or
a
bio
break.
Let's
take
five
minutes,
we'll
reconvene
at
9
40.,
it's
9
36
right
now.
M
M
M
B
B
E
All
right,
thank
you,
we're
here
this
morning
to
present
the
preliminary
pension
valuation
results.
E
I
we're
ahead
of
our
normal
schedule,
I'll
run
through
the
schedules
right
now,
but
so
we're
not
doing
the
full
evaluation
presentation,
but
we'll
present
the
preliminary
results
will
focus
a
lot
on
what's
changed
over
the
last
year
and
looking
at
some
of
the
differences
between
tier
one
and
tier
two,
I
will
defer
most
of
our
projections
to
the
next
meeting
when
we'll
have
the
full
valuation
report
and
we'll
discuss
risk
and
all
of
those
sorts
of
issues,
just
as
a
reminder
of
our
five
board
meetings
that
where
we
have
actuarial
items,
we
started
back
in
october,
reviewing
the
economic
assumptions
and
then,
in
november
we
reviewed
the
demographic
assumptions
and
made
final
decisions
on
all
of
those
pension
assumptions.
E
So
today
we
have
the
preliminary
valuation
results
for
the
pension,
but,
as
roberto
was
saying
in
his
introduction,
we're
also
going
to
review
the
assumptions
for
the
opeb
plan
in
the
next
agenda
item
and
we
will
need
decisions
from
the
board
on
those
assumptions
so
that
we
can
move
forward
in
january.
We'll
be
back
with
the
final
pension
valuation
report
and
we
will
have
the
preliminary
op
valuation
and
then,
in
february,
as
roberto
had
mentioned,
siegel
is
doing
an
actuarial
audit.
We
expect
their
audit
results
for
that
february.
E
So,
just
as
a
reminder
when
we're
doing
the
valuation,
the
primary
output
of
the
valuation
is
the
contributions,
but
we
have
to
look
at
the
whole
system
we
have
here
and
over
time.
We
need
the
contributions
plus
the
investment
earnings
to
equal
the
expenses
and
the
benefits,
and
so
when
we
do
the
valuation
we
start
by.
Looking
at
the
plan
provisions,
the
census
data
and
all
of
our
assumptions
to
project
out
the
benefits
and
expenses
that
are
going
to
be
paid
in
the
future.
E
So
this
year
we
had
exceptional
investment
returns,
as
we've
been
talking
about
for
several
months,
and
that
has
had
a
significant
impact.
E
The
little
gold
slice
is
for
members
who
are
no
longer
working
for
the
city
but
are
entitled
to
a
benefit
in
the
future,
and
the
red
is
for
the
active
members.
E
E
We
went
from
the
actuarial
value
being
higher
than
the
market
value
to
now
being
substantially
below
the
market
value,
and
so
we'll
talk
about
that
process
and
dynamic
a
little
bit
more
later.
E
On
the
right
hand,
side
you
can
see
the
breakout
between
tier
one
and
tier
two,
and
so
a
couple
things
to
note
here.
The
system
is
still
very
much
dominated
by
tier
one.
The
actual
liability
for
tier
one
far.
E
The
actual
reliability
for
tier
two,
and
so
the
funded
status
of
tier
one,
is
pretty
much
the
funded
status
of
the
whole
system.
It's
slightly
different,
but
this
is
the
big
unfunded
liability
that
we're
trying
to
pay
off.
E
E
We
haven't
recognized
all
of
those
yet
in
the
actuarial
value
of
assets,
and
so
that
improvement
is
more
gradual.
I
would
note
tier
two
is
well
over
a
hundred
percent
funded
on
a
market
value
basis.
It's
almost
125
funded
on
an
actuarial
value.
It's
over
110,
funded.
E
Contributions,
I
don't
think
we've
presented
a
a
contribution
picture
like
this
before,
because
since
2010
we've
been
building
contributions
up
to
pay
off
the
unfunded
liability,
but
this
year
we're
seeing
a
significant
reduction
in
the
total
city
contribution
from
87
percent
down
to
81
of
pay
and
on
a
dollar
basis.
It
goes
down
as
well
from
270
to
211.
E
Well,
the
member
rates
and
the
city
normal
cost
rate-
that's
the
cost
of
benefits
attributable
to
the
next
year
of
service
are
are
remaining
relatively
flat,
those
as
a
percent
of
pay,
there's
a
shift
as
we
go
from
tier
one
to
tier
two
where
the
members
are
paying
more
and
the
city
is
paying
less
of
a
proportion
of
that.
That's
a
gradual
shift
that
we
expect
to
continue
for
for
quite
a
few
years
on
a
dollar
basis
as
the
payroll
grows.
E
The
big
change
is
the
ual
payment
and
primarily
the
tier
one
ual
payment.
We
split
that
ual
payment
between
the
interest
on
the
ual
and
the
principal
payment
on
the
ual.
The
principal
payment
is
the
amount
that's
actually
going
to
reduce
the
ual.
E
So,
with
the
exceptional
returns,
part
of
the
reason
we're
paying
off
so
much
of
that
principle
on
the
ual
is
that
we
smooth
the
assets
so
we're
not
reducing
the
contribution
as
quickly
it
smoothes
out.
The
effect
of
volatile
investment
returns
on
contributions,
and
so
I
wanted
to
talk
through
how
we
develop
the
actuarial
value
of
assets.
E
E
E
so
that
difference
of
80
million
dollars
was
our
gain
for
the
year
and
you
can
see
similar
thing.
Differences
across
the
board.
2021
is
really
an
outlier
where
the
actual
return
was
over
a
billion,
and
we
only
expected
250
million.
So
that's
quite
a
difference.
E
On
the
right
hand,
side
we're
showing
how
we
split
that
difference,
so
in
2017,
80
million
all
the
way
to
2021
where
it
was
almost
800
million.
Now
we
split
that
between
what
we
recognized
in
the
actuarial
value
and
what's
deferred
to
be
recognized
in
the
future
and
everything
from
five
years
ago
is
fully
recognized
in
this
valuation
and
then
80
from
four
years
ago,
sixty
percent
from
three
years
ago,
forty
percent
from
2020
and
only
20
in
2021.
E
E
The
investment
gain
was
781
million,
but
we
deferred
about
625
million
of
that
and
and
so
forth,
for
2020
we're
we're
deferring
60
2019
we're
deferring
40
2018
we're
deferring
20
and
we're
not
deferring
anything
for
2017..
E
E
E
M
Hi
everyone
I'm
going
to
continue
on
with
some
more
good
news.
Fortunately,
looking
at
the
membership
trends,
what
we
see
here
is
the
membership
counts.
In
blue.
We
have
the
active
membership
split
between
the
tier
one,
which
is
the
dark,
blue
and
then
tier
two
is
the
teal
color
and
then
the
deferred
vesteds
are
in
gold.
Those
are
members
who
are
no
longer
active,
but
are
not
yet
in
pay
status,
and
then
the
green
bars
represent
those
members
who
are
currently
in
pay
status.
M
The
red
line
is
a
calculation,
that's
called
the
support
ratio
of
the
number
of
inactives
compared
to
the
number
of
active
members,
and
you
can
see
that
starting
in
2021.
This
has
increased
dramatically
over
that
20-year
period,
mostly
because
the
active
membership
decreased
by
about
25
percent.
While
we
saw
almost
a
doubling
of
the
members
and
pay
status
during
that
same
time,.
B
Let
me
jump
in
real
quick
and
those
of
you
were
new
trustees.
It
was
this
observation
really
kind
of
almost
panic
button
hit
by
chiron
that
triggered
us
to
have
a
slightly
more
conservative
investment
strategy
than
other
plans,
so
you're
you're
sort
of
seeing
a
little
bit
deja
vu,
keep
going
man.
M
Right,
yes,
but
the
good
news
is
that
since
2017
the
act
of
membership
has
been
increasing
and
you're,
so
you
see
that
support
ratio
line
declining
in
2018
and
kind
of
stabilizing
over
the
next
few
years
here
from
2020
to
2021,
there
was
an
increase
in
the
active
membership
of
about
about
30
members,
so
that
again,
that
support
ratio
did
stabilize
and
like
drew,
was
saying.
You
know.
Why
is
this
important?
M
What
what
does
this
ratio
mean?
And
it's
basically
that
the
active
members,
the
payroll,
is
the
basis
for
the
plan
member
contributions,
so
it
becomes
more
challenging
to
support
the
inactive
liabilities
with
a
relatively
smaller
payroll
base
in
in
making
your
plan
more
sensitive
to
to
changes
in
investments
and
liabilities.
Because
of
that.
M
Here
we're
showing
the
changes
in
the
ual
and
it
is
based
on
the
actuarial
value
of
assets.
On
the
left
hand,
side
you
can
see
that
the
ual
from
2020
was
about
1.4
billion
and
it
decreased
to
about
1.2
billion
or
about
166
million
dollars.
M
The
biggest
driver
of
that
change
was
your
your
investment
gains,
which
totaled
117
million
and
then
the
second
biggest
driver
here
is
those
contributions
over
the
tread
water
level
and
again
that's
the
amount
of
contributions
that
are
above
the
normal
cost
and
interest
on
the
ual.
It's
what
is
paying
off
your
unfunded
liability
and
that's
a
a
relatively
large
chunk
going
towards
on
paying
down
the
unfunded.
M
M
The
biggest
driver
here
was
salaries
increased
a
little
bit
more
than
we
anticipated
and
that
was
offset
by
a
mortality
gain,
which
means,
unfortunately,
that
we
had
more
dust
than
were
expected
and
we
don't
know
whether
or
not
that's
was
cova-driven.
But
it's
pretty
it's
very
in
line
with
what
we're
seeing
nationally
of
about
15
to
20
excess
deaths.
But
again
it
didn't
really
translate
to
a
large
gain.
M
It's
just
a
small
gain
there
and
when
you
look
historically
over
the
last
five
years,
the
main
driver
of
these
liability
gains
and
losses
is
the
salary
component
with
salaries
are
increasing
or
decreasing
more
than
we
anticipated,
but
it
does
balance
out
over
the
bargaining
cycle.
Like
one
year,
you
see
a
big
gain
like
in
2017,
I'm
sorry,
it's
a
loss
in
2017
and
then
the
next
year
you
see
a
gain
so
that
does
it
is
balancing
out
with
those
bargaining
cycles.
M
M
The
total
liability
experience
over
this
10-year
period
increased
the
ual
by
about
93
million
dollars.
The
investment
returns
and
assumption
changes
are
both
very
similar
in
magnitude
and
increasing
the
ual
over
time.
The
actual
value
was
about
480
million
dollars
increase
in
the
ual,
and
you
can
see.
Most
of
that
has
been
a
result
in
the
last
11
years.
M
Almost
all
of
those
were
losses
that
have
accumulated,
but
you
can
see
in
2021
that
it
was
a
relatively
large
gain
for
the
year
and
this
is
on
an
actuarial
value
basis,
so
you're
going
to
see
similar
gains
over
the
next
four
years.
If
the
assets
return
around
6.6
every
year
for
the
next
four
years,
you're
gonna
have
all
those
deferred
gains.
That
bill
was
talking
about
of
about
five
or
six
hundred
million
dollars.
M
So
that's
good
news
and
we'll
show
you
those
projections
at
our
next
meeting,
but
you
can
look
forward
to
that
buffer
over
the
next
four
years.
Just
to.
E
M
Right,
so
there
were
slight
decreases
in
the
ual
due
to
some
benefit
changes
back
in
2012
the
srbr
was
eliminated
and
then
in
2017
there
was
a
slight
increase
due
to
changes
for
measure
f
again
significant.
Is
this
contribution
treadwater
level
concept,
where
you're
paying
large
chunks
of
the
ual
principle
based
on
your
contribution
effort
right
now,
and
you
can
see
that
in
2021
it
was.
M
We
said
it
was
about
50
million
and
that
dramatic
change
from
this
valuation
from
last
year's
valuation
to
this
year's
valuation,
that
bill
showed
earlier
you're
going
to
see
that
red
bar
increasing
as
well
over
time
because
of
the
amount
that's
going
to
go
towards
paying
down
the
unfunded.
That's
going
to
increase
as
well
so
going
forward.
M
So
tier
one
versus
tier
two
we're
going
to
take
a
look
at
some
of
the
differences
in
in
the
tiers
here.
On
the
left
hand,
side
we
have
the
membership
counts
and
then
on
the
right,
the
payroll
and
for
membership.
The
tier
one
makes
up
over
eighty
percent
of
the
planned
membership
and
that's
because
the
retirees
are
still
just
over
fifty
percent
of
of
the
plan's
membership
and
then
tier
two
does
make
up
about
forty
percent
of
the
active
membership.
M
Their
plan
total
is
about
15,
but
they
are
close
to
40
percent
of
the
counts.
As
of
2021
valuation,
however,
their
payroll
is
just
slightly
less
than
40
percent,
because
the
tier
one
they're
younger
and
have
less
service,
so
they
have
their
pay,
is
slightly
less
than
the
tier
one
active
so
make
up.
62
percent
of
the
payroll.
M
Tier
one
makes
up
almost
99
of
the
actuarial
liability
still
and
that's
for
two
reasons
because
of
the
inactives
who
are
all
tier
one
members,
the
the
ones
that
are
in
pay
status,
make
up
close
to
seventy
percent
of
that
accrued
liability
and
then
tier
one
actives.
They
are.
They
make
up
28
of
the
total,
but
they
are
about
15
years
older
on
average
and
have
15
more
years
of
service
than
the
tier
two
actives.
M
M
So
it's
not
surprising
that
ninety
percent
of
the
city's
contributions
are
going
toward
tier
are
going
toward
membership
for
the
tier
one.
And
so
looking
at
these
tier
one
contributions,
you
can
see
that
the
city
total
went
from
203
million
dollars
to
194
million.
So
that's
a
decrease
of
9
million,
and
that
is
mostly
in
the
decrease
in
that
ual.
Payment
of
a
which
decreased
by
about
7
million
for
the
tier
1.
M
and
then
the
normal
cost
also
decreased
about
two
million
dollars
for
tier
one
and
that's
because
they're,
just
less
tier
one,
active
membership
or
tier
one
members
from
last
year
as
they
leave
and
retire
and
then
for
tier
one.
The
member
contribution
rate
is
from
last
year
to
this
year,
actually
increased
about
17
basis
points,
then
turning
to
tier
two,
their
the
city,
total
contribution
increased
slightly
about
3
million,
and
that's
just
because
there's
more
members
in
tier
2.
M
Now
the
tier
2
member
rates
actually
declined
slightly
about
10
basis
points,
and
that's
because
tier
2
is
allocated
a
portion
of
the
ual.
The
members
in
tier
2
are
allocated
a
portion
of
the
uil
payment,
but
in
this
case,
as
bill
had
discussed
earlier,
is
that
the
tier
two
they're
fully
funded?
So
that's
not
a
uil
payment.
They
get
an
offsetting
ual
credit
so
that
decreased
their
contribution
rate.
It
was
a
net
decrease
for
them
about
10
basis
points
in
the
member
contribution
for
tier
2
members.
K
M
Sure
so
tier
2
members
pay
50
of
their
normal
cost,
whereas
tier
1
members
pay
3
8
of
the
normal
cost,
and
then
tier
2
members
also
paid
50
of
the
ual,
where
tier
1
members
do
not
pay
any
of
the
ual.
M
So
going
that
big
decrease
that
we
saw
in
the
ual
this
year
actually
translated
to
a
decrease
in
the
tier
two
member
rates,
where
you're
not
seeing
that
for
tier
one.
So
there
was
a
slight
increase
in
the
total
normal
cost
rate
for
tier
two,
but
it
got
offset
by
a
bigger
uil
credit
for
them
because
of
the
asset
experience.
E
So
this
slide
breaks
out
the
contributions
into
the
components
the
city
needs
for
their
budgeting
process
and
projects
them
for
five
years.
It's
the
only
projection
we
have
in
here.
The
percent
of
pay
for
each
year
is
shown
in
the
left,
column
and
dollar
amounts
in
the
right
column.
E
So
you
can
see
that
the
individual
rates
for
tier
1
and
tier
2
for
police
and
fire
for
the
members
and
how
those
are
projected
going
forward.
I
should
note
there
is
a
minimum
contribution
rate
of
equal
to
the
normal
cost,
so
the
ual
reduction
for
tier
2
only
goes
to
pay
off
the
administrative
expenses.
E
It
doesn't
go
more
negative
than
that,
so
there
is
a
minimum
equal
to
the
normal
cost,
but
you
can
see
that
the
normal
cost,
not
counting
administrative
expenses,
is
slightly
lower
and
so
we're
projecting
some
slight
reductions
in
the
tier
two
contributions.
E
E
But
I
think
for
the
board.
The
main
thing
I
want
to
point
out
here
is
what
the
projection
is
at
the
bottom:
we're
going
from
87
down
to
81
this
year.
The
projection
is
to
have
significant
steps
down
over
the
next
five
years:
72
64,
58
51,
and
that's
a
combination
of
recognizing
the
investment
returns
from
this
last
year,
and
so
it
in
paying
off
some
amortizations
in
the
process.
So
finishing
payments
on
some
layers
in
the
amorization.
E
E
Now
all
of
that
assumes
that
we
get
6.625
returns
each
and
every
year
and
all
of
our
other
assumptions
are
met.
So
we
know
there's
going
to
be
variation
on
that,
but
I
think
the
thing
to
keep
in
mind
is
that
those
banked
investment
gains
provide
significant
downward
pressure
on
the
contribution
rates
over
the
next
four
years.
E
We
will
come
back
and
show
you
the
sensitivity
of
that
going
forward
to
other
scenarios
and
what
it
would
take
for
the
contributions
to
go
back
up,
but
in
the
near
term,
there's
significant
downward
pressure
on
city
contribution
rates
because
of
those
investment
returns.
C
I
think
you
just
made
a
point
which
I
just
want
to
make
sure
I
sort
of
understand.
You
said
it
sounds
like
there's
about
516
million
dollars
of
what
I
call
a
reserve
from
your
one
of
your
previous
slides.
E
C
E
So
these
projections
are
taking
into
account
the
recognition
of
that
516
million
over
the
next
four
years.
Okay,
and
so
it's
assuming.
We
get
six
and
five-eighths
percent
return
on
the
market
value
of
assets
during
that
period,
so
that
we
can
fully
recognize
that
516
million
over
the
next
four
years.
C
Got
it
so
we
have
to
make.
We
have
to
continue
to
make
six
and
six
and
three
eighths
for
the
next
four
years
to
be
able
to
recognize
that
516
million
is
that.
E
K
K
I
know
this
is
part
of
the
work
that
you
guys
do
for
the
city.
I
just
you
know
I
I
do
present
the
actual
results
of
the
city
council
every
year,
and
this
is
a
big
big,
big
caution
here,
because
wow
you
know,
the
last
thing
I
wanted
to
do
is
start
thinking.
That
rates
are
going
to
be
going
down
up
to
60
million
dollars
for
the
next
five
years.
K
You
know
not
that
it
could
not
happen,
and
I
certainly
will
talk
to
prabhu
and
make
sure
that
he
earned
six
and
five
eights
for
the
next
five
years.
I
know
probably
can
do
that,
but
you
know
in
the
unlikely
event
that
we
had.
We
have
a
bad
bad
year
going
forward
just
as
good
as
we
had
it
now,
then
all
those
numbers
are
ow.
Is
that
correct.
M
Yeah,
that
is
correct,
bill
lost
connection.
He
said
again,
but
that
is
correct.
M
Okay,
well
now
that
is
correct.
One
point
just
to
make,
though,
is
that
the
effect
of
the
2021
gain
was
so
substantial
that
it
would
take
a
very
big
loss.
Yes,.
K
K
I
just
think
that
the
the
you
know
the
numbers
are
so
sizable
right
over
the
next
five
years
that
I
think
it's
important
that
we
sort
of
draw
that
caution
when
we
speak
publicly
about
it
which,
which
bill
just
did
I'm
not
saying
that
he
didn't
I'm
just
kind
of
reinforcing
that.
That's
all.
Thank
you.
E
And
I
think
one
of
the
things
we've
talked
about
potentially
doing
is
the
city
requests
these
five-year
projections
for
their
budgeting
purposes
and
perhaps,
rather
than
just
providing
the
single
projection,
we
might
provide
them
in
addition
to
this
projection
kind
of
a
range
to
give
them
some
idea
of
the
potential
range
of
contributions,
depending
on
investment
returns,
because
we've
talked
about
how
sensitive
this
plan
is
to
those
investment
returns.
E
C
Okay,
so
I
I
guess,
if
I
were
to
develop
an
intuition
around,
you
know
what
kind
of
loss-
maybe
you
are
going
into
this
later,
but
going
back
to
this
516
million
dollar
reserve.
That's
been
created
thanks
to
2021,
20,
20
and
21
returns.
C
If
we
look
at
the
asset
base,
that's
about
you
know
something
like
11
12
loss.
You
know,
if
just
simply
to
wipe
that
out
so
to
speak
and
increase
contributions.
Is
that
a
reasonable
intuition.
E
Roughly
yes,
that
now
that's
from
6.625,
so
it's
not
a
minus
11
return,
but
then
the
pattern
of
that
recognition
would
not
match
up
with
the
pattern
of
the
current
516
million,
so
it
wouldn't
wouldn't
directly
eliminate
it
all
going
forward
and
so
right
when
we
come
back
next
month
with
the
model
and
those
things,
we
can
run
those
scenarios
for
you
and
show
you
how
the
pattern
works.
C
Yeah,
it
makes
sense.
I
guess
you'll
smooth
that
as
well,
so
right,
yeah
one
other
one
of
the
last
question
was
I
really
liked
slide
10,
which
was
really
you
know
very
well.
The
whole
presentation
was
fantastic,
particularly
side.
Ten
slide.
Ten,
I
was
curious.
Do
you
have
a
any
sense
on
the
the
550
452
million
assumption
change
that
caused
sort
of
an
increase
in
urls,
primarily
drove
that?
Is
it
essentially
the
discount
rate
or
are
there
other
things
that.
E
The
vast
majority
is
the
discount
rate.
There
were
other
changes.
I
think
part
of
the
change
in
2015
was
mortality,
so
there
have
been
other
changes,
including
retirement
rates
and
mortality
that
have
contributed
to
that.
But
the
vast
majority
is
the
discount
rate.
I
So
bill,
and-
and
so
this
is
just
a
preliminary
summary
of
the
data-
and
you
guys
are
coming
back
in
january-
to
provide
the
final
valuation
report-
is
that
correct.
I
E
K
K
Of
course,
I
think
the
audit
is
a
necessary
evil.
I
think
it
needs
to
be
done
and
I
think
it's
the
right
approach
to
make
sure
that
every
so
long
we
sort
of
confirmed
that
the
process
and
the
assumptions
that
your
board
is
using
based
on
kyron's
work
are
appropriate
and
having
another
outstanding
firm,
supporting
that,
like
sega,
is
certainly
a
very
good
approach
and
a
and
a
very
good
fiduciary
responsibility
and
decision
a
new
part.
K
But
one
of
my
key
issues
here
is,
is
I
told
seagull
hey
if,
for
whatever
reason,
which,
by
the
way
I
want
to
make
the
point,
I
do
not
expect
any
big
changes,
so
any
material
findings
in
the
audi.
But
obviously
the
last
thing
that
I
will
want
is
for
your
board
to
approve
the
evaluation
and
then
sega
will
come
back
and
bring
forward
some
sizeable
comments
or
material
comments
that
could
impact
that
decision.
K
B
Hey
bill:
let's:
let's
not,
let's
not
bring
that
up
in
public
just
yet
I'm
trying
I'm
starting
an
internal
dialogue
on
bored.
I'm
I'm
doing
something
slightly
confidential
with
our
actuary
and
staff
because
it
might
be
a
wacky
idea.
Bill's,
not
okay.
If
we
sort
of
keep
this
off
the
road.
E
Not
not
going
into
what
to
do
about
yeah,
but
tier
two
is
young
and
growing
rapidly.
K
E
B
E
Major
topic,
if
tier
one
was
funded
that
way,
it
would
be
a
major
topic
because
that's
the
large
part
of
the
liability-
and
it
is
not
growing.
B
E
E
Right-
and
I
I
think
one
way
to
look
at
it-
is
it's
125
funded,
but
that
means
it
has
a
surplus
of
17
million
dollars
yeah,
which
is
really
nothing
in
the
overall
scheme
of
things.
So
we
just
need
to
keep
the
the
different
size
and
different
dynamics
in
mind
here,
but
I
think
that's
a
good
point,
because
we
don't
want
people
to
be.
I
don't
know,
jumping
for
joy
at
tier
two's,
funded
percentage,
we
like
it
being
over
a
hundred
percent,
but
it's
not
the
same
as
if
the
whole
plan
was
over.
B
Yeah
yeah.
Well,
I
say
bill,
you
know
and
that's
the
advantage
of
having
you
know.
That's
that
curve
that
and
showed
the
red
line.
We
don't
have
any
red
line
on
this
fun
yet
because
again,
we
probably
have
some
some
tier
two
people,
retired.
B
No,
no,
oh
zero!
So
great
thanks
bill,
a
floor's
still
open
any
more
comments,
if
not
usual
excellent
job
bill
and
anne
thanks.
We're
gonna
move
on
to
item
four
e
election
for
the
positions
of
chair
and
vice
chair,
harvey
maytag
reason.
B
B
E
Okay,
so
mike-
and
I
are
gonna
run
through
the
assumptions
here-
for
the
open
evaluation.
But
before
we
get
to
the
assumptions,
is
this
working
here
there
we
go.
E
I
want
to
give
a
little
background
about
the
opeb
plan
and
how
it's
funded,
because
we
talked
so
much
about
the
pension
and
it's
a
little
bit
different
here
for
the
opeb
and
then
we're
going
to
talk
about
the
assumptions
that
are
specific
to
the
oped
plan.
We
borrow
the
retirement
rates,
mortality
and
all
of
those
kinds
of
assumptions.
E
We
use
the
same
assumptions
as
a
pension
plan,
and
this
item
is
an
action
item.
We
do
need
some
board
decisions
on
this,
so
the
the
opeb
plan
is
mostly
closed
and
what
I
mean
by
that
is
the
only
members
who
can
get
the
full
benefits
are
tier.
One
members
who
did
not
elect
the
viva
others
can
get
a
benefit
if
they
qualify
for
catastrophic
disability,
but
that's
a
much
smaller
benefit
because
of
the
probabilities
of
qualifying
for
catastrophic
disability.
E
So
the
primary
benefit
is
for
the
that
closed
group
of
tier
one
members
with
the
measure
f
changes.
Member
contributions
are
now
fixed
at
eight
percent
of
pay,
so
we
as
the
board,
are
not
changing
the
dial
on
member
contributions,
regardless
of
what
we
do.
It
does
not
change
the
member
contributions.
E
So
this
valuation
develops
the
contribution
for
2023
just
like
the
pension
plan,
and
then
we
also
use
it
for
financial
reporting.
E
Now,
in
addition
to
that,
when
you
provide
retirees
access
to
the
health
care
plans,
there
is
an
implicit
subsidy
and
the
city
pays
for
this
on
a
pay-as-you-go
basis.
E
E
We
use
the
same
premiums
for
active
employees
and
retirees
who
aren't
eligible
for
the
medicare
plans,
so
the
the
pre-medicare
retirees
but
the
cost
for
health
care
varies
by
age,
and
so
the
retirees
tend
to
be
older
than
the
active
employees
as
a
whole,
and
so
the
costs
of
providing
those
retiree
benefits
are
actually
greater
than
the
premiums
that's
charged.
And
that
difference
is
the
implicit
subsidy.
E
Now
we
develop
and
exploit
expected
claims
costs
combined
with
the
federated
plan
and
calculate
the
implicit
subsidy,
and
we
disclose
that
amount
in
the
funding
valuation
and
it's
an
integral
part
of
the
financial
reporting
under
gasby,
for
both
the
plan
and
the
city.
And
so
it's
a
part
of
that
valuation.
E
E
I
just
want
to
touch
on
the
valuation
results
from
2020.
I
these
are
the
contributions
with
the
member
in
purple
and
the
city
in
gold.
A
couple
things.
I
want
to
note
about
the
contributions
we've
got
police
on
the
left
fire
on
the
right
one
is
that
that
eight
percent
of
pay
that
the
members
pay
just
about
covers
the
normal
cost.
It's
right
about
the
same
as
the
normal
cost.
So
there
the
members
are
essentially
paying
for
the
additional
accrual
of
benefits
and
the
city's
contribution
is
going
to
pay
off
the
uaf.
E
The
other
thing
I
want
to
note
here
is
the
size
difference,
because
this
graph
is
scaled
for
the
open
plan
and
we
just
went
through
the
pension
plan.
If
you
add
the
city's
contribution
for
police
and
for
fire,
you
get
a
little
over
27
million
dollars
compared
to
over
200
million
dollars
for
the
pension
plan.
E
All
right
here
we're
showing
the
funded
status
again.
This
is
just
for
the
explicit
subsidy.
The
blue
bars
are
the
members
in
pay
status,
the
reds
are
actives
and
the
gold
are
the
people
who
no
longer
work
for
the
city,
but
are
entitled
to
a
future
benefit,
which
is
a
much
smaller
group
for
the
opeb
benefits.
E
E
E
Here's
the
projections
for
police
from
the
last
valuation
just
to
get
an
idea
of
what
we're
looking
at
there
couple
things
to
note
here
and
the
fire
is
very
similar.
We
show
it
on
the
next
slide.
One
is
the
these
gray
bars.
Are
the
liability
they're
expected
to
grow
for
about
10
to
15
years
and
then
start
to
decline,
and
that's
because
of
the
closed
nature
of
the
full
benefits?
E
Eventually,
the
liabilities
here
will
be
dropping
the
assets,
we're
projecting
to
catch
up
eventually,
but
we
are
starting
at
32,
and
so
it
is
a
long
haul.
E
If
all
of
our
assumptions
are
met
on
the
contribution
side,
you
can
see
the
the
purple
bars
are
the
member
contribution
as
the
rest
of
the
tier
one
members
retire,
we're
expecting
those
contributions
to
go
decline
and
go
away
and
the
gold
are
the
city's
contributions,
so
the
city's
contributions
actually
are
projected
to
increase
a
little
more
rapidly
than
just
as
a
percent
of
pay,
because
they're
making
up
for
the
decline
in
the
member
contributions
as
well.
E
E
And
the
fire,
the
numbers
are
slightly
smaller
than
on
police,
but
it's
very
similar
patterns
were
projected.
E
Now,
on
the
opeb,
it's
not
just
the
assets
that
are
volatile.
It's
also
the
liabilities
and
the
key
thing
that
drives
the
volatility
and
the
liabilities
is
health
care
costs
and
in
particular,
what
is
that
maximum
annual,
explicit
subsidy,
that's
driven
by
the
lowest
cost
health
plan,
and-
and
so
you
can
see
here-
we've
shown
a
history
back
to
2016
of
what
those
numbers
are,
and
you
can
see
that
the
change
from
one
year
to
the
next
bounces
around
a
fair
amount.
E
Prior
to
sick
age,
65
is
receiving
the
maximum
explicit
subsidy,
regardless
of
what
plan
they
select
because
they're
all
more
costly
than
than
the
subsidy.
But.
E
Plans
are
below
the
maximum
subsidy,
so
we're
paying
the
full
premiums
for
those
medicare
eligible
plans
and
those
plans.
The
premiums
decreased
from
point
five
percent
to
three
point.
One
percent,
so
we'll
also
get
some
additional
gains
this
year
from
the
medicare
eligible
plan,
costs.
E
Okay,
this
is
just
a
quick
summary
of
our
recommendations.
I'm
going
to
take
you
through
the
discount
rate
and
mike's
going
to
take
you
through
the
rest
of
it.
There's
not
a
lot
of
changes
in
particular,
not
significant
changes
that
we're
recommending,
probably
the
most
significant,
is
a
consideration
of
reducing
the
discount
rate.
The
other
things
are
pretty
minor
adjustments
to
what
we've
been
assuming.
E
So,
on
the
discount
rate,
the
115
trust
has
a
different
asset
allocation
than
the
pension
trust,
and
so
it
also
has
a
different
expected
return
and
we
compared
like
we
did
for
the
pension.
We
compared
nikita's
expectations
over
10
years
and
20
years
to
the
average
assumption
in
the
horizon
survey
of
investment
consultants
over
10
and
20
years,
and
so
you
can
see
the
median
returns
are
except
for
the
horizon.
20-Year
return
are
all
lower
than
the
current
discount
rate
of
six
and
a
quarter.
E
E
We
also
note
that
these
capital
market
assumptions
do
move
around
based
on
a
lot
of
different
factors,
but
the
the
two
largest
factors
seem
to
be
interest
rates
and
then
the
current
market
valuations
that
are
driving
these
changes,
so
in
2021
the
six
and
a
quarter
that
we
have
it's
still
within
this
range,
but
it's
right
at
the
top
at
the
20-year
range
and
and
so
we're
suggesting
that
you
may
want
to
consider
taking
a
step
to
be
closer
to
the
middle
of
that
range
down
to
six.
E
You
could
consider
something
further,
but
we
also
know
that
you're
revisiting
the
asset
allocation
in
the
next
couple
months,.
E
So
that's
that
will
be
the
the
big
decision
before
we
get
to
a
discussion
to
that,
though,
I'm
going
to
turn
it
to
mike
to
run
through
the
others.
N
Okay
and
then
the
other
big
thing
that
drives
the
liability
is
the
future
healthcare
trend
rights
and
what
we
use
is
a
medical
trend
model
that
was
developed
by
the
society
of
actuaries
called
the
gets
in
model
and
what
it
does.
Is
you
really
develop
short-term
estimates
of
what
you
think
the
trends
are
going
to
be
over
the
next
five
years?
N
Then
they
adjust
down
to
4.93
by
2030,
which
is
really
the
nominal
gdp
growth
plus
an
excess
medical
cost.
Because
again,
medical
cost
continues
to
grow
more
than
gdp
because
of
all
of
the
changes
in
medical
technology.
But
then
it
grades
down
to
our
long-term
projection
of
gdp
growth
at
3.78
by
2075,
and
we
keep
dental
the
same
at
three
and
a
half
percent
kind
of
just
a
general
right
around
that
gdp
growth
and
the
next
slide
actually
shows
this
graphically.
N
You
can
really
see
the
longer
term.
Assumptions
are
completely
unchanged
between
the
two
and
so
we've
got
a
slightly
increased
set
of
assumptions
for
the
non-medicare
eligible
to
reflect
that
kind
of
historical.
We
think
there's
going
to
be
some
slightly
increased
costs
over
the
short
term
to
reflect
that
bounce
back
in
health
care,
but
the
medicare
actually
runs
the
other
way.
Medicare.
L
I
N
Healthcare
trends
they're
pretty
consistent
with
what
our
expectations
were
in
the
next
slide
are
planned
elections.
So
we
have
to
make
some
guesses
as
to
where
active
employees
will
enroll
once
they
retire,
and
what
this
chart
shows
by
the
pre-medicare
and
the
medicare
plans.
First
column
shows
what
we
assumed
in
the
2020
evaluation
and
then
the
second
shows
how
they
actually
enrolled
in
2021,
and
you
can
see
that
pretty
much
we're
spot
on
there's
some
minor
variations,
but
in
general
people
are
enrolling
where
we
expect.
N
So
the
only
change
that
we're
recommending
is
for
the
anthem
plans
is
the
city
actually
introduced.
A
new
anthem
plan
called
the
anthem
traditional.
So
it's
an
hmo
plan
that
has
a
broader
provider
network
than
the
current
select
plan
is
so
we're
making
an
assumption
that
some
people
will
elect
to
pay
the
extra
premium
to
join
that
plan
again.
K
N
Has
this
option
that
a
retiree
can
actually
elect
to
waive
coverage
in
retirement
and
receive
a
credit
equal
to
25
of
what
that
explicit
subsidy
is
and
then,
when
they
come
back
to
the
plan,
they
can
actually
use
that
to
help
pay
down
their
premium,
so
they
can
choose
one
of
these
more
expensive
plans
and
help
pay
for
it.
By
having
this
in
luke
coverage,
it's
only
been
in
place
since
measure
f
has
been
added
so
last
year
we
said
it
based
on
three
years
of
experience.
Now
we've
got
four
years.
L
N
Experience
and
so
we've
been
continually
reassessing
of
what
happens,
based
on
what
we're
really
seeing
happen
going
on
over
time.
So
if
we
go
to
the
next
slide,
we
can
see
we're
recommending
some
slight
changes
in
the
assumed
tier
coverage
and
we
can
see
at
the
bottom
for
the
pre-medicare
we're
actually
pretty
close
to
what
we
assumed
so
that
we
assumed
25
would
be
only
20
would
cover
themselves
in
a
spouse
and
55
family.
The
actual
enrollment
is
21,
23
and
56.
So
it's
again
with
limited
number
of
people,
that's
fairly
close.
N
Coming
out
very
different,
and
so
for
last
year
it
was
32
percent
were
single,
you
know,
68
covered
their
spouse,
so
we're
recommending
we
take
a
step
downwards
and
change
it
to
40
60..
N
The
other
assumption
we
have
with
the
illume,
which
we
have
almost
no
experience
yet
is
how
long
are
they
going
to
actually
stay
in
loose
stats
before
they
come
back
to
the
plan,
and
our
current
assumption
is
five
years.
We
recommend
we
continue
it
five
years
and
see
how
it
develops
over
time.
Very
few
people
come
back
in,
so
it's
really
an
assumption.
That's
going
to
be
interesting
to
monitor
as
time
goes
on.
N
The
next
slide
is
the
administrative
expense,
and
if
we
kept
with
our
historic
methodology,
we
would
be
using
42.23,
because
we
basically
just
increased
it
each
year
with
the
wage,
inflation,
and
so
what
this
chart
does
is.
We
took
the
historic
experience
from
2013
through
2021
increase,
basically
increased
it
with
the
wage
inflation,
which
is
three
percent
for
every
year,
except
for
2020,
which
is
up
to
3.25
percent.
N
To
get
it
all
on
a
equivalent
basis
divided
by
the
number
of
members,
and
you
can
see
the
average
actually
has
come
down
to
38.50
and
you
can
see
that's
because
for
the
last
three
years
of
19,
20
and
21,
the
expenses
have
come
down
based
compared
to
what
they
were
historically
and
so.
We're
recommending
that
we
actually,
instead
of
using
the
42,
bring
it
down
to
41
to
really
partially
start
to
reflect
those
lower
administrative
costs.
Over
the
last
three
years.
E
So
those
are
all
the
assumptions
with
changes.
There
are
a
couple
other
slides
in
the
appendix
showing
like
dependent
coverage
elections
where
we
were
just
right
on
in
some
additional
in
lieu
elections,
where
the
current
assumptions
seem
right
on
so
we'd
ask
the
board
to
make
a
decision
on
the
discount
rate
and
adopt
the
recommended
assumptions
for
the
other
health
assumptions,
the
trend
rates
and
so
forth
through
the
administrative
expenses.
B
So
before
I
open
the
floor
bill,
if
I
I
hear
what
you
guys,
you
and
michael
are
saying
everything
below
discount
rates.
Pretty
straightforward.
Is
there
anything
we
should
be
debating
beyond
the
discount
rate.
E
B
All
right,
then,
then,
let
me
let
me
break
the
board
dialogue
up
into
two
pieces
board.
Let
me
open
the
floor
first,
not
on
the
discount
rate,
but
on
health
care
trend
rates
through
ad
and
expenses.
Does
anybody
want
to
discuss
any
of
those.
D
Yeah
yeah,
so
the
first
is
a
general
question
to
understand
how
this
works.
So
if,
when
a
retiree
becomes
medicare
eligible,
do
they
switch
to
a
medicare
eligibility
plan
and
and
and
are
those
much
you
know,
cost
us
much
less
because
I
guess
the
federal
government
is
paying
most
of
it
is
that
is
that
a
fair
assumption
or.
D
Okay
and
the
second
on
page,
seven.
D
Just
you
know
that
how
the
liability
kind
of
decreases
right
yes
over
time-
is
that
because
you're,
seeing
a
transition
from
tier
one
to
tier
two
and
tier
two
causes
less.
So
what
does
driving
that
decrease?
Well,
there
is
no
tier
two
okay,
they
don't
you
don't
pay.
Okay,.
E
A
I
got
it,
I
got
a
quick
question
drew
andrew.
Can
you
go
to
slide
17.
it's
in
regards
to
health
in
lieu.
A
Yeah,
so
you
know
the
chart
the
chart
prior,
you
guys
were
talking
just
about
health
and
loo,
and
you
know
this
will
be
our
fourth
year.
You
know
trying
to
get
create
historical
data,
but
looking
at
the
chart
at
the
bottom
corner
on
pre-medic
medicare.
A
So
if
I
add
these,
you
know
the
pre-medicare
between
retiree
retiree
spouse
and
retiree
family.
You
know
we're
close
to
98.
99
is
the
other
one
to
two
percent.
Basically,
the
people
that
are
participating
in
health
and
lieu.
E
Yeah
so
these
two
add
up
to
44
and
then
56..
If
we're
off,
it's
probably
just
a
rounding
issue.
A
K
Yeah,
do
you
have
that
data
bill?
I
I
believe
I
just
asked
staff
drew
and
I'm
told
for
police
and
fire.
It
just
seems
low.
It
says
about
5.7,
okay.
Does
that
make
sense,
but
does
that
make
sense
bill.
K
E
We
are
seeing-
I
guess,
I'd
echo,
that
roberto
as
I
think
the
the
numbers
we're
seeing
are
probably
higher.
It
depends
on
this.
30
percent
is
new
active
members
retiring
have
the
option
to
elect
in
lieu,
so
maybe
five
percent
is
when
you're
looking
at
the
whole
population.
K
Yeah,
the
five
percent
is
in
the
whole
retiree
police
officer
population.
I
mean
close
to
six
percent,
maybe
yeah,
so
I
I'll
confirm
that
number
later.
If
you
find
something
different,
let
us
know,
but
that's
that's
what
I
heard
from
staff.
A
Yeah
and
that's
just
just
out
of
curiosity,
see
how
you
know
health
and
lu
is
impacting.
You
know
the
health
fund
and
and
for
my
understanding,
is
you
know
if
and
correct
me?
If
I'm
wrong,
there
is
a
savings
to
the
plan
as
more
people
opt
into
health
in
lieu.
E
A
A
Andrew
for
the,
for
the
most
part
what
people
were
doing-
and
this
is
why
we
negotiated
this-
they
would
take
the
lowest
cost
plan
for
free
yeah.
What
the
city
does
in
the
in
lieu
is
they're
giving
you
like,
I
want
to
say
30
or
40
percent,
of
what
it
would
cost
them
for
the
medical
in
the
in
lieu
bank.
I
think.
A
B
All
right,
hey
bill,
go
to
slide
11.
Will
you
let's
go
ahead
and
open
up
the
discussion
on
the
discount
rate,
so
bill
you're
you're?
Clearly
I
think
recommending
we
lower
it
biller
you
guys,
I
mean.
I
know
you
guys,
don't
really
like
to
recommend,
but
are
you
guys
thinking
six
or
you
thinking
lower
than
six
or
you're
sort
of
indifferent.
E
E
Yeah,
so
generally,
we
don't
like
making
a
significant
move
all
at
once.
Unless
you
know
it's
really
warranted,
and
so
you
know,
I
guess
I'd
say
if
the
capital
market
assumptions
stay
where
they
are.
We
would
probably
ask
you
to
consider
further
reductions
in
the
future,
but
we
know
those
move.
So
you
know
a
quarter.
Point
is
a
reasonable
change
at
this
point.
B
All
right,
great
yeah
floors
open
for
any
input
on
taking
the
discount
rate,
2,
6
or
below
6
or
leaving
where
it
is.
B
Yeah,
I
think
that's
great,
and
and
would
you
make
the
motion
to
accept
all
the
other
recommendations
as
well?
B
Yes,
absolutely
there's
a
motion
by
trustee
avalo
to
go
to
six
percent
and
keep
all
the
other
recommendations.
Is
there
a
second
a.
J
A
D
B
Franco,
hi
dave
hi
and
I'm
chair
lanza,
I
vote.
I
that's
unanimous
thanks
for
reminding
me
I
I
don't
know
how
I
managed
to
skip
that,
we're
all
done
with
that.
Then
we
move
on
to
nominate
elections
right
roberto
that.
K
Is
correct,
mr
chair.
B
Great
okay,
so
we've
slightly
changed
the
way
we
do
it.
This
year
we
we
used
to
stagger
the
chair
and
vice
chair,
but
we've
changed
that,
and
so
last
month
andrew
was
nominated
for
vice
chair.
I
was
nominated
for
chair
the
previous
month.
We
are
the
only
ones
that
have
been
nominated
for
those
two
slots,
so
we
just,
I
think,
just
need
to
go.
Go
round
now.
Let's
start
first
with
vice
chair
andrew
I'm
just
going
to
go
around
and
and
call
for
the
vote.
B
We
need
to
get
six
affirmatives
in
order
to
pass
muster
andrew
hi.
D
B
L
B
Franco
hi
and
dave
hi
and
I'm
charles
aye,
so
that's
eight
votes
unanimous
for
andrew
congratulations,
andrew
I'm!
Next,
oh
hang
up
thanks
thanks
pervert.
That
means
a
lot
to
me
or
to
andrew
anyway,
hey
so
for
me
now
for
the
role
of
chair
andrew
hi,
anita.
D
B
Franco,
hi
dave
hi,
I
vote
for
myself
too.
So
that's
all
soon
anonymous.
So
I
I
can,
I
think
experiment
andrew
is
an
honor
to
be
nominated
and
re-elected
and
we're
looking
forward
to
having
a
fun
year
next
year.
B
Great
okay.
Now
it
says
here
now
I've
got
a
little
script.
So
we're
going
to
follow
the
script
for
item
4f.
It
says
maytag,
you
got
any
comments.
You
want
to
make
first
on
item
4f5
the
factual
findings
for
ab361
over
to
you
may
attack.
I
Hi
everyone
it's
everyone's
favorite
subject
of
the
of
the
each
mutant.
We
have
here
a
few
comments,
so,
as
you
guys
know,
in
the
news,
the
omicron
variant
is
alive
and
well
in
the
united
states,
and
the
first
case
has
been
found
in
san
francisco
in
the
bay
area.
As
of
this
week,
the
proclaimed
state
of
emergency
is
ongoing,
as
the
governor's
proclaimed
declaration
of
the
proclaimed
state
continues
to
be,
in
effect
for
kobe
19.
I
and
as
of
november
16th.
The
san
jose
city
council
has
renewed
its
resolution
to
continue
social
assistancing
in
city
facilities.
Now
there
is
one
wrinkle
that
I
do
want
to
raise
to
the
board,
which
is
a
matter
of
timing.
The
ab361
law
is
relatively
inflexible
and
it
requires
by
law
that
the
board
every
30
days
make
these
factual
findings
to
provide
continuity
for
you
guys
to
meet
virtually
now.
I
The
wrinkle
here
is
that
we're
voting
on
december,
2nd
and
30
days
from
december
2nd
would
generally
be
january
1st,
and
the
next
meeting
that
you
guys
have
regularly
scheduled
is
for
january
6
2022..
So
that
means
between
now
and
the
end
of
the
year.
If
the
board
so
chooses
to
want
to
continue
to
meet
virtually
in
january
that
the
board,
it
would
be
our
recommendation
that
the
board
scheduled
a
special
meeting
to
make
those
factual
findings
under
the
law.
I
So
with
that,
as
of
now
for
the
next
30
days,
there
are
grounds
for
you
guys
to
meet
virtually
based
on
a
the
state
of
the
declaration
of
the
proclaimed
state
of
emergency
into
the
city
council's
recent
resolution
for
social
distancing.
So
I
turn
it
back
to
you
guys
and
open
the
floor
for
questions.
B
Hey
maytag
real
quick,
so
there
is
no
mechanism
regular
boards.
We
could
do
this
through
email
through
written,
unanimous
consent.
I
assume
we
don't
have
that
mechanism.
B
I
K
K
Okay,
so
we
do
have
our
federated
meeting
on
the
16th,
so
it
could
be
any
time
between
next
week.
Oh,
it
will
have
to
be
in
the
next
two
weeks
or
I
guess
I
suppose
we
could
do
it
the
week
of
december
20th,
but
that's
close
to
christmas.
That
makes
it
harder
to
get
one
available.
Yes,.
A
I
got
I
got
a
suggestion.
We
do
have
an
ic
meeting
coming
up,
there's
four
of
us
already
there
and
we
can
schedule
it
the
same
day
either
right
before
the
meeting
or
right
after
the
meeting
probably
preferred
to
do
right
before
the
meeting
yeah
and
if
we
could
get
basically
at
least
one
more
person
to
show
up
we'll
have
quorum.
K
No,
I
think,
you're
right.
I
think
that
that
may
work
so
I'll
work
with
linda
and
I'll
make
sure
I
mean
unless
there's
an
objection
from
the
book
from
the
anyone
at
the
board
we'll
try
to
schedule.
A
special
meeting
will
work
with
natec
of
the
board
before
uic
meeting,
which
I
think
is
scheduled
to
start
at
11
o'clock.
D
No,
it's
10
30.
K
D
B
I
No,
I
honestly
don't
think
the
legislature
really
thought
this
through.
I
think
when
they
were
drafting
this,
they
were
kind
of
on
the
cusp
of
you
know
the
governor
recall
reelection
and
the
the
executive
orders
expiring.
They
just
kind
of
threw
it
together
as
urgency
bill
now.
I
I
may
have
raised
this
before
when
I
previously
spoke
about
this
bill.
My
understanding
from
talking
to
people
more
closely
affiliated
with
this
in
sacramento
is
that
there's
no
intent
to
modify
this
bill
in
any
way.
So
until
then
we're
stuck
with
the
30
days.
I
It's
very
inflexible.
I
know
it's
it's
kind
of
cumbersome
but
they're,
making
a
cumbersome
on
purpose
so
that
you
know
the
boards
have
to
justify
their
continued
virtual
meeting
instead
of.
B
K
B
K
I
just
wanted
to
say
that
I'll
I'll
work
with
with
prabhu
obviously
and
his
staff
as
well,
but
the
same
thing
is
going
to
happen
with
the
federal
board
meeting
may
attack.
So
what
I
was
going
to
say
is
when
I
reach
out
to
you,
we
may
want
to
call
special
meetings
for
both
boards
that
day,
so
that
we
don't
have
to
do
two
separate
special
meetings.
So.
K
D
B
Okay,
the
floor
shall
open
any
other
questions
for
maytag
all
right.
I
have
a
script
here.
We
go
based
on
the
information
presented
by
council.
Thank
you.
Hey
doc,
and
provided
with
our
aboard
backup
materials
appears
that
the
following
factual
findings
justify
the
continuation
of
virtual
meetings
under
av
361.
number
one.
The
governor's
proclamation
of
state
emergency
continues
due
to
the
ongoing
cover
19
pandemic
and
number
two
san
jose
city
council's
recent
resolution
continues
to
impose
or
recommend
measures
to
promote
social
distancing
and
city
facilities.
B
I
have
a
second
byvato:
is
there
any
discussion
from
the
public
or
from
the
trustees?
N
I
I
just
wanted
to
thank
a
trustee
gardener
for
flagging
the
november.
I'm
sorry,
no,
the
november
december
17th,
I
see
meeting
as
a
potential
vehicle,
because
I
was
not
aware
of
that
and
it
makes
my
job
a
little
easier.
Thank
you.
B
Yeah
and
and-
and
that's
is
that
just
pnf
ic
or
is
that
joint,
ic
joint,
too
okay,
so
you're
gonna
get
both
boards
at
at
that
meeting.
If
you
just
add
one
for
two
minutes,
we
can
do
wrap
the
whole
thing
up
so
december
for
those
of
you
that
have
been
for
hours
a
very
busy
month
for
retirements
and
we've
got
about.
I
think
there's
20
of
them
here.
So
I'm
going
to
go
through
this
all
right.
We
are.
B
We
are
announcing
the
retirements
and
we'll
have
a
vote
to
approve
of
adolfo
s:
acosta
police
officer,
police
department,
effective
december
25th
2021,
merry
christmas,
with
27.34
youth
service,
david
r,
burnett,
battalion
chief
fire
department,
effective
december
9th
2021,
25.41
years
of
service,
john
boren
police,
sergeant
police
department,
effective
december
11,
2021
29.65
years
service.
You
almost
made
the
big
3-0
john
richard.
B
The
name
raised
bell
police
sergeant,
police
department,
effective
december
11,
27.4
years
of
service,
christine
little
capp
police,
lieutenant
police
department,
effective
december
24th,
2021
29.03
years
service,
another
almost
3-0,
jerry
b,
laird
battalion
chief
fire
department,
effective
christmas
day,
2021
25.89
years
of
service,
lee
g
lawrence
police
officer,
police
department,
effective
christmas
day,
2021.,
the
big
300
30.73
years
service,
good
job
lee
with
reciprocity,
todd
m,
lonick,
police,
lieutenant
police
department.
Fact,
christmas
day,
2021
30.23
years
of
service.
B
We
got
a
trifecta
going
here:
david
melandrino,
firefighter
fire
department,
effective
january
8th
2022,
25.46
years
service,
robert
ragssack
jr,
firefighter
fire
department,
effective
january
2022,
29.53
years
of
service
got
three
of
them
was
made.
The
thirteen
two
of
them
did
mark
taylor,
police
officer,
police
department,
effective
christmas
day,
2021
27.3
years
service,
jim
ambala
police
officer,
police
department,
effective
jan
8,
2022
25.34,
your
service,
michael
weira,
police
officer,
police
department,
gen,
8,
2022,
25.2
years
service
with
reciprocity
and
keith
westy
fire
department.
Fire
depart
fire.
B
A
C
B
A
Folks,
yeah
I'll
jump
in,
I
always
want
to
say
you
know,
congratulations
and
appreciate
everybody
on
this
list.
That's
retiring!
Thank
you,
for
you
know
for
your
service.
You
know.
Next
month's
list
will
probably
be
just
this
long,
but
thank
you
enjoy
your
retirement
stay
healthy.
Thank
you.
L
A
Yeah
I
just
like
to
echo
andrew's
words:
there's
a
lot
of
expertise,
leaving
the
police
department
with
this
list.
I've
worked
with
every
single
one
of
them
and
they've
provided
a
lot
of
leadership
and
dedication
to
the
department
and
a
lot
of
service
to
the
citizens
of
san
jose
so
enjoy
your
retirement
guys.
B
Great
stuff,
now
on
to
the
deferred
vested
kelly,
knight,
john,
the
police
officer
police
department,
effective
december
31,
2021
22.64
years
service
with
reciprocity.
I
I
forget,
where
dude
we
need
to
vote
on
these?
L
B
C
B
A
A
B
Franco
hi
dave
hi
and
I
vote
I
as
well.
Unfortunately
this
this
year,
thank
god.
We've
only
got
sort
of
normal
size,
a
death
and
survivorship
list.
But
I'll
read
these
off.
Then
we'll
have
a
moment
of
silence:
a
notification,
the
death
of
richard
bibby,
firefighter
retired
december
1st
1971.
B
good
for
you.
Richard
died
october,
4th
2021,
no
survivorship
benefits
notification
of
the
death
of
bobby
berdin
fire
captain
retired
october
3rd
1996
died
october,
20,
20
21.
Also,
no
survivorship
benefits
notification
of
the
death
of
robert
w
caroball
firefighter
retired
july
30th
2005
died
september,
29,
2021
survivorship
benefits
to
margaret
mark.
B
I'm
sorry,
margot
carabao
spouse,
notification
of
death
of
charles
farrow,
firefighter
retired
february
28
1998
died
march,
16
2021,
no
survivorship
benefits
notification,
death
of
glenn,
terry
police,
sergeant,
retired
january
4th,
1983
died
august,
8,
2021,
no
survivorship
benefits
a
notification
on
death
of
lawrence
weir
police,
sergeant
retired
september
15
2001
died
september,
20th,
2021,
survivorship,
benefits
of
dorothy
weir
spouse.
We'll
have
a
moment
in
silence.
B
L
Folks,
yes,
mr
chair,
dick
santos,
it's
always
sad
and
I
work
with
all
of
them
here
with
car
in
the
fire,
and
it's
very
sad
because
bob
kerbel
and
I
grew
up
together
in
albiso
as
young
kids,
and
it
was
very
sad
but
the
their
families
the
best
and
thank
you
for
all
the
service.
Thank
you.
B
If
not
we're
going
to
move
on
to
committee
reports,
this
is
going
to
be
fast.
I
don't
think
we
had.
Any
committee
meets
any
committees
meet
in
the
interim.
Ask
for
any
comments
on
the
investment
committee.
D
Yeah
no
no
meetings.
We
just
have
a
special
meeting
to
kind
of
waive
the
one
month
rule
and
we
need
to
because
receive
and
file
the
minutes
of
the
last
such
meetings.
So
nothing,
nothing
substantive.
B
Thanks
great,
it's
very
well
note
that
item
7.1
b
we
do
receive
and
file
the
minutes
on
to
the
audit
risk.
Commit
committee
study
to
any
comments.
C
And
no
same,
I
think
the
only
agenda
item
was
the
approval
to
continue
online
meetings,
so
nothing
terrible.
That's
great.
B
That's
great
7.2
b
we
receive
and
file
the
minutes
of
that
special
meeting
governance
over
to
you,
franco,
any
anything
to
report
yeah.
I
don't
think
we
have
anything
to
report.
That's
great,
so
7.3
b
we
again
receive
filed
the
minutes
from
special
meaning
to
continue
the
angry
resolution.
Disability
committee.
We
didn't
meet
dick
any
comments.
B
A
B
B
If
not
anybody
any
members
of
the
public
have
any
comments
or
anything
they'd
like
to
put
on
the
agenda
for
next
month.
I
There's
a
hand
up
from
jill
borders,
charlenza.
I
I
Okay,
yes,
I
do
thank
you
so
much
I'll,
I'm
pretty
emotional,
so
I'll
try
to
be
normal
anyway,
I'm
undercept
isolation
due
to
covid,
and
so
I
decided
that
I
would
be
online
and
watching
every
city
meeting
that
I
could,
because
I'm
sitting
here
in
my
room
and
I
need
to
learn
a
lot
more
about
anything
right
now
and
my
heart
is
really
full,
as
I
listen
to
all
of
you
and
hear
all
the
names
of
those
that
are
retired,
also
those
that
have
passed
away-
and
I
just
want
to
say
thank
you
from
the
bottom
of
my
heart,
because
I've
lived
in
san
jose
for
54
years
and
we
don't
often
get
a
chance
to
thank
our
firefighters
and
our
police
officers.
I
And
so
I
just
genuinely
want
to
say
thank
you
because
I
really
don't
think
people
quite
understand
how
important
you
all
are,
and
I
just
want
to
say
thank
you
and
you've
literally
gotten
in
a
position
where
you
saved
my
life,
and
I
want
to
say
thank
you
and
just
tell
you
how
much
you
all
mean
to
me-
and
I
hope
you
spread
that
word,
because
you
are
loved,
even
if
you
don't
get
that
message
all
the
time.
So
thank
you
so
much.
B
A
Jill
this
is
a
trustee
wilson
from
the
police
side.
I
appreciate
your
comments
and,
on
behalf
of
the
police
department,
we
are
out
there
to
serve
the
citizens
of
san
jose
and
we
do
know
that
the
majority
of
the
citizens
do
appreciate
our
work,
but
it's
always
nice
to
hear.
Thank
you.
Thank
you.
Hi
jill.
This
is
a
trustee
gardener,
I'm
on
the
fire
side.
I
definitely
appreciate
your
comments.
You
know
we're
here
to
serve
the
community
and-
and
you
know
we
get
feedback
like
that.
It
makes
it.
L
A
Yeah,
just
to
echo
what
dave
said
on
behalf
of
the
police
department,
it's
a
it's
a
tough
job
and
we
always
you
know
we're
not
always
making
people
happy,
but
it's
really
good
to
hear
that
people
appreciate
what
we
do.
A
B
Glad
to
see
they
saved
your
life,
so
you
could
thank
them.
Thank
you.
So
much.
That's
the
end
of
our
meeting
so
over
to
you
maytag,
mr.
K
K
I
wanted
to
take
a
minute
to
first
thank
you
bohr
for
your
support
of
the
staff
and
for
your
hard
work
and
dedication
throughout
the
year
for
the
members
of
the
police
and
fire
plan,
and
I
also
wanted
to
take
this
opportunity
to
thank
publicly
publicly
the
staff
of
our
office
retirement
services.
As
you
know,
we're
still
working
only
like
anybody
else
at
the
city
and
the
own
other
jobs
around
the
country.
K
It's
been
a
chatting
year,
so
I
just
wanted
to
take
this
time
to
thank
them
on
behalf
of
the
members
and
your
board,
the
staff
of
our
office
for
the
hard
work
and
dedication
on
serving
our
members
here.
So
thank
you.
So
very
much
again,
thank
you
to
you
board
for
your
work
and
your
support
of
the
staff
throughout
this
calendar
year.
2021
and
for
your
dedication
to
the
plan
members,
so
again
it's
been
a
wonderful
year
so
far
and
I
wish
all
of
you
a
very
happy
holiday.
B
Well,
I'm
sure
you
can
speak
out
of
after
the
board
and
it's
just
been
an
absolute
pleasure
to
work
with
you
and
your
great
staff.
You
guys
have
maintained
your
wonderful
sense
of
humor
and
your
esprit
de
corps
and
I
look
forward
to
better
times.
Well,
we
had
good
times
in
2021
despite
the
virus.
I
look
forward
to
continuing
that
with
you
and
your
staff
in
202..
Okay,
we
are
adjourned
maytag
over
to
you.
I
Well,
thank
you
guys
and
thank
you
for
bearing
with
me
so
the
first
meeting
that
we
have
here
to
call
to
order
would
be
the
investment
committee
to
the
chair
of
the
investment
committee.
Would
please
call
a
meeting.