►
Description
City of San José, California
Police & Fire Department Retirement Plan Board of December 3, 2020
This public meeting will be conducted via Zoom Webinar. For information on public participation via Zoom, please refer to the linked meeting agenda below.
Agenda https://sjrs.legistar.com/View.ashx?M=A&ID=817917&GUID=5FEBBE15-6A39-426A-A1D1-CDB421D8F2C8
A
B
All
right,
thank
you
good
morning,
everybody
let's
go
ahead
and
get
the
police
and
fire
department,
retirement
plan
and
health
care
trust
meeting
started
today
is
december
3rd
2020..
B
Let's
go
ahead
and
do
a
quick
roll
call
myself
andrew
gardner's
president
drew
lonza.
C
C
D
B
D
E
B
Vincent
vince
cinceri
here
franco,
ovato.
F
B
All
right,
so
we've
got
all
the
trustees
except
we're
still
waiting
for
howard
lee
pam
fully
is
usually
a
little
bit.
Our
council
member
usually
comes
after
a
closed
session.
Our
general
and
judiciary
council
is
present.
We've
got
our
ceo,
roberto,
pena
and
cio
prabhupalani,
and
a
lot
of
a
lot
of
our
staff
is
here
too.
B
B
B
A
A
A
A
A
A
A
A
B
B
Have
any
orders
the
day
to
announce
we'll
just
go
ahead
and
continue
practicing
start
continue
practicing
our
the
current
way.
We
handle
these
meetings
on
zoom.
There
is
no
sunshine
to
wave
at
the
time,
and
so
we'll
go
ahead
and
move
to
one
consent.
Calendar.
Is
there
anything
on
the
consent
calendar
that
people
wanted
to
pull
for
discussion?
B
Motion
by
santos,
howard
ii,
howard,
second
by
howard,
any
other
public
discussion
comments.
If
not
do
a
roll
call
vote.
Lonza,
hi,
gonna,
potty,
hi
lee;
yes,
yes,
luyo!
I
santos,
yes,
cinceri.
G
B
All
right
all
right,
I
heard
the
eye
from
cesari
envato
and
myself
gardener.
I
all
right
consent
calendar
passes,
so
let's
go
ahead
and
move
to
2.0
investments,
oral
update
from
cio
retirement
services,
prabhupalani.
G
Thank
you,
mr
chairman.
Good
morning,
everyone
I
have
some
performance
numbers
to
report.
These
are
preliminary
numbers
today
in
the
main
session,
we'll
actually
have
casey
boy
and
laura
wyrick
reporting
on
third
quarter
performance,
but
before
that
we
do
have
october
and
november
numbers.
I
may
have
shared
october
at
the
last
board
meeting
that
was
a
negative
74
basis.
G
Points
november
was
up
6.27,
obviously
very,
very
strong
market
there,
and
on
december
1st,
we
were
up
53
basis
points
so
calendar
year
to
date
up
10.39,
which
of
course,
the
calendar
numbers
are
less
relevant
for
us
fiscal
year
today,
up
12.66
and
quarter
to
date
through
december
1st
was
up.
6.04
percent
and
the
healthcare
trust
had
numbers
similar
numbers
in
in
the
same
ballpark.
G
But
of
course,
laura
will
do
a
more
detailed
performance
update
through
third
quarter
in
a
few
minutes
and
casey
will
do
it
through
june
30th
for
private
assets,
also
trustees.
It
gives
me
very
great
pleasure
to
announce
two
promotions
and
I've
been
waiting
for
this
for
a
year.
These
individuals
on
the
investment
team
were
first
promoted
a
year
ago,
but
then
kovit
happened
and
it
got
pushed
back,
but
it
gives
me
great
pleasure
to
announce
that
with
immediate
effect,
jay
kwon
has
been
promoted.
G
A
senior
investment
officer
and
david
ong
has
been
promoted
to
investment
officer
and
you
both
know
jay
and
david.
Quite
well.
Now
the
tremendous
investment
they've
added
a
lot
of
value
to
our
investment
program
jay
has
for
for
the
newer
trustee
jay
has
an
undergraduate
degree
in
economics
from
stanford
an
mba
from
oxford
in
the
uk.
G
Several
years
of
work
experience
on
the
buy
side
for
one
of
the
leading
investment
managers
before
he
joined
ors,
maybe
about
six
six
plus
years
ago
and
david
has
an
undergraduate
degree
from
ucla
a
master's
degree
in
financial
mathematics
from
claremont
graduate
school
was
a
principal
at
kkr
on
the
private
equity
firm
in
the
risk
group
for
six
years
prior
to
joining
san
jose
so
clearly
very
distinguished
backgrounds,
lots
of
experience
they
can
work
anywhere,
but
they've
chosen
san
jose
as
their
employer
and
public
service.
And
for
that
I
am
grateful.
G
B
All
right,
thanks
trustees,
any
trustees
have
questions.
B
If
not
before,
we
pass
along
jay
david
congratulations,
this
is
well
deserved
and
it's
been
coming
for
a
long
time.
Thank
you
for
your
patience.
Prabhu
has
been,
you
know
been
trying
to
work
on
this
for
almost
a
year
now,
but
you
know
due
to
covet
and
and
things
that
you
know
really
slowed
down
that.
Thank
you
for
your
patience.
B
H
I
am
online.
Can
you
hear
me
hear
me
great?
I
see
the
presentation
on
on
the
screen
there,
so
I
will
go
ahead
and
get
started
first
off
again.
Thank
you
for
having
me
definitely
appreciate
the
opportunity
to
update
you
all
each
quarter
and
and
stay
in
contact
on
where
we
are
within
building
the
portfolio
and
the
development
of
returns.
H
So,
as
probably
mentioned,
I'm
going
to
be
reporting
on
q2
performance
and
I'll
give
just
a
little
bit
of
background
on
I
mean.
Obviously,
it's
been
a
very
crazy
year
and
there's
been
a
lot
that
has
happened
a
lot
of
unknown
and
continues
to
be
unknown
on.
What's
what
we'll
see
going
forward,
but
I
have
a
little
bit
of
q3
information
that
I
can
share
as
well.
So
I
thought
I
would
do
that.
As
you
know,
q1
returns
valuations
were
down.
H
I
think.
Overall,
we
saw
about
a
9
decrease
in
your
portfolio
in
q1,
which
we
of
course
expected
and
was
in
line
with
public
markets,
went
down
further
than
that,
but
definitely
affected
some
of
our
evaluations
as
well.
A
lot
of
gps
were
also
being
very
conservative
in
q1.
H
We've
actually
seen
a
quick
return
of
investments.
So,
if
you
look
on
page
two
you'll
see
the
legacy
information
broken
out,
the
middle
column.
There
is
the
new
burger
portfolio
and
then
on
on
the
far
right,
you'll
see
the
combined.
H
The
returns
have,
as
I
mentioned,
have
come
up
and
they
are
actually
for
q2
back
to
what
essentially
was
lost
in
q1.
So
great
news,
it
was
a
little
bit
of
a
volatile
year,
but
we
are
back
into
the
realm
of
where
we
were
before
covid
and
the
way
it's
looking
for
q3.
H
We
haven't
actually
reported
q3
just
yet,
but
it
looks
like
the
portfolio
will
be
up
again
for
q3
somewhere
in
the
eight
to
nine
percent
range,
so
again,
positive
developments.
The
private
equity
market
continues
to
be
very
strong
lots
of
funds.
H
H
A
lot
of
companies
still
are,
requiring
you
know,
an
nr
being
valued
at
high
valuations.
Of
course,
the
only
ones
getting
those
high
valuations
are
the
companies
that
are
very
good
assets,
so
we're
seeing
we're
seeing
a
lot
in
the
market.
There's
a
lot
coming
to
market
we've
had
a
lot
of
opportunities,
so
we
look
forward
to
continuing
that
for
your
portfolio.
H
H
The
following
pages
pages,
three,
four
and
five-
I
won't
in
six-
I
won't
hit
on
all
of
them,
specifically
the
first
two
three
and
four
benchmark
the
legacy
portfolio,
so
the
the
funds
that
were
invested
in
prior
to
starting
the
new
burger
program
and
how
those
benchmark
against
their
peers
so
on
the
right,
you'll
see
the
quartiling
metrics
first
second
or
third,
based
on
the
irr
or
the
multiple
of
invested
capital.
H
A
lot
of
these
quartiling
metrics
and
performance
for
the
legacy
portfolio,
especially
on
page
three,
will
not
move
a
lot
anymore
because
they
have
been.
They
are
quite
old
funds,
and
so
a
lot
of
the
performance
at
this
point
is
already
baked.
H
H
I'll
turn
to
page
seven
page,
seven
is
a
fairly
new
slide.
We
actually
added
this
in
q1,
so
this
is
the
second
time
you'll
see
that
that
you've
been
seeing
this
slide
just
to
give
a
little
breakdown
of
the
exposures
within
the
portfolio.
H
You'll,
see
it
in
a
couple
different
ways
based
on
committed
capital
and
invested,
so
committed
is
kind
of
overall,
where
we
expect
the
capital
and
what
has
been
committed
to
date
and
then
invested
capital,
which
is
the
dollars
that
have
actually
been
put
in
the
ground
to
date.
So
the
great
thing
about
co-investments
and
secondaries
are:
they
are
very
efficient
with
capital
they
put
capital
into
the
ground
immediately
for
your
program,
so
you'll
see
on
the
invested
capital
co-investments
at
a
much
higher
percent
about
41
secondaries
percent
and
then
primaries.
H
H
H
H
This
is
an
analysis
of
the
overall
performance
and
how
that
benchmarks,
your
portfolio,
so
at
the
very
top
you
see
the
performance
of
each
investment
type,
primary
secondary
and
co-investments.
H
Again,
all
of
them
are
up
since
q1,
as
I
mentioned,
secondaries
and
co-investments
are
an
efficient
use
of
capital.
They
put
capital
into
the
ground
quickly
and
they
also
start
generating
returns
quicker
than
primary.
So
it's
always
a
great
addition
to
the
portfolio
and
we've
we've
seen
that
here
as
well
and
at
the
bottom
chart
on
the
bottom
chart
you'll
see
how
the
new
burger
portfolio,
new,
burger
and
san
jose
portfolio
is
benchmarking
compared
to
its
peers.
H
So
at
this
point
the
returns
here
are
as
of
q2.
H
The
benchmark
is
as
of
q1,
so
it's
a
little
bit
apples
to
oranges
and
that's
simply
due
to
the
fact
that
it
takes
a
while
for
the
benchmark
reports
to
become
available,
but
so
far
portfolio
is
performing
right,
where
we
would
expect
it
to
perform
in
terms
of
of
where
it
is
with
its
peers,
obviously
still
very
early,
and
we
expect
a
lot
more
in
terms
of
performance.
H
H
And
pages
9
and
10
are
just
a
very
detailed
overview
of
every
investment
within
the
portfolio,
including
both
legacy
and
new
burger
investments.
I
won't
go
through
all
the
detail
here,
but
on
page
10
you
can
see
how
that
relates
just
in
terms
of
overall
totals
within
the
portfolio.
At
this
point,
new
burger
and
those
investments
are
almost
40
percent
of
the
portfolio
and
the
legacy
is
about
60
percent
and
yeah.
I
think
with
that
I'll
open
it
up
for
any
questions.
B
All
right,
thank
you.
Casey
trustees,
eswar.
D
Thank
you,
andrew,
and
thank
you
casey
for
the
presentation,
so
I
mean
one
thing
which
you
know:
people
talk
about.
This
recovery
is
a
k-shape
recovery.
Some
companies
doing
well
and
some
not
and
as
you
see
opportunities
and
as
you
know,
we
deploy
capital.
H
Yeah,
so
I
think
within
our
portfolio
we're
very
opportunistic.
We
do
have
target
allocations
within
buyout
growth
equity,
but
we're
able
to
really
assess
where
we
put
capital
on
an
individual
basis.
So
for
our
primaries,
that's
a
little
bit
more.
You
have
to
anticipate
that
a
little
bit
more
and
actually
you
know
pick
which
funds
and
which
asset
class
you
want
to
be
in
for
the
long
term.
H
One
great
thing
about
having
an
opportunistic
bucket
for
co-investments
and
secondaries
is
that
you
really
can
focus
on
a
specific
company
and
whether
it's
growth
or
whether
it's
buyout
figure
out
what
the
positives
are
of
that
company
and
really
incorporate
it
into
your
portfolio
so,
for
instance,
over
this
time
period,
asia,
while
the
us
was
kind
of
going
through
more
of
the
coven
pandemic.
I
would
say
in
march
april
may
obviously
it
continues
on
asia
had
actually
started
to
recover
from
their
january
february
outbreak.
H
So
we
actually
had
a
lot
of
investments
in
deal
flow
from
asia.
During
that
time
period
there
there
was
quite
a
bit
of
kind
of
the
growth
buyout
which,
in
reality
it
can
be
a
very
close,
a
thin
line
between
the
two
and
so
overall
we've
seen
a
lot
from
both
asset
classes.
H
But
to
answer
your
specific
question
about
about
which
one
we
maybe
lean
towards,
I
would
say
it's
very
dependent
on
companies
and
I
think
our
co-investments
specifically,
we
are
really
able
to
figure
out
which
companies
have
very
good
have
performed
well
through
covid,
which
ones
have
strong
capital
structures,
strong,
free
cash
flow
and
those
are
the
most
important
things
we're
looking
at
whether
it's
growth
or
buyout.
H
A
lot
of
those
tend
to
be.
You
know
if
they're
going
to
have
a
ton
of
free
cash
flow
more
buyout.
So
it's
really,
instead
of
looking
asset
class
specific.
It's
really
looking
at
the
fundamentals
of
the
business
and
figuring
it
out
from
that
aspect
and
not
holding
ourselves
to
a
very
strict.
You
know
set
allocation.
D
Okay,
thank
you
casey
and
one
more
question:
investment
45
I
mean
that's
2017
and
still
showing
you
know
a
big
down
mark
right
in
terms
of
valuation.
Anything
going
on
there.
H
So
the
only
thing
I
would
say
that's
going
on
there
that
company
still
only
has
made
one
investment,
so
they,
if
anything,
I
would
say,
are
just
being
very
slow
to
deploy
the
kind
of
information
you're
seeing
there.
I
think
the
portfolio
the
one
company
they
have
is
held
at
just
slightly
under
cost
about
point.
I
think
it's
0.95,
so
there's
nothing
wrong
with
the
company.
H
I
think
it's
been
doing
okay
through
covid,
but
the
fact
is,
you
know,
since
they
only
have
one
company,
since
it's
not
written
up
and
it
was
invested
in
quite
a
while
ago.
It's
really
seeing
the
j
curve,
so
we're
obviously
hoping
that
they
can
get
some
capital
deployed
here,
pretty
quickly
and
and
and
start
making
some
investments
that
that
can
hopefully
generate
some
more
return.
B
Azvar
other
trustees
have
questions
for
for
casey.
C
I
guess
I
had
a
couple
of
questions
for
casey.
One
is
probably
basic
for
some
of
the
other
trustees
so
qualify
that
so
the
legacy
portfolio
is
that
still
active,
or
is
that
just
sort
of
a
passive.
H
I'll
start
it
and
then,
if
brian
wants
to
add
anything
I'll,
let
him
do
that.
So
there
have
been
some
investments
you'll
see.
On
page
five,
there
were
some
investments.
H
F
H
Yeah,
lots
of
coordination
between
our
team
and
brian
and
his
team
calls
with
them
at
least
weekly,
most
most
of
the
time,
we're
speaking
more
than
weekly.
So
we
we
share
with
them
and
go
through
diligence
on
every
investment
that
we
put
in
the
portfolio.
We
have
forward
calendars
model
portfolios,
so
they
can
see
years
in
advance
of
what
we're
looking
at.
So
I
don't
think
in
my
opinion,
there's
really
no
chance
of
overlap.
F
Yeah,
well,
I
I
just
you
know,
would
echo
that
the
way
this
partnership
works
is
newberger.
Berman
has
their
process
and
their
deal
sourcing
and
their
underwriting
and
a
140
person
team
that
that
does
that.
But
we
are
a
lot
more
than
just
a
passive
recipient
of
what
they
do,
we're
very
actively
engaged,
and
ultimately
we
do
have
the
ability
to
to
say
no
to
an
investment
or
to
indicate
you
know
that
we
like
it.
We
do
think
it
should
be
part
of
the
portfolio.
So
it
is
truly
a
partnership.
G
C
There's
a
lag
between
the
information,
particularly
in
the
private
equity
space.
So
can
you
give
us
some
non-numerical
colors
so
to
speak
on,
what's
been
happening
over
the
last
three
months
since
this
was
put
together.
H
Sure
so
I
would
say
in
general,
the
private
equity
market
has
really
rebounded
from
q2
q1
over
q3,
just
in
terms
of
private
equity
activity
and
kind
of
deals
agreed
and
announced.
H
Q3
was
up
almost
double
of
what
q2
was
so
there's
been
a
very
quick
return
to
companies
being
being
sold,
bought
and
sold.
So
q3,
I
believe,
is
almost
on
par
with
what
was
happening
in
terms
of
activity
for
q1,
and
I
think
that's
mostly
because
any
company
that
really
did
make
it
through
covid
in
a
positive
way.
H
They
were
quickly
brought
to
market.
You
know
in
q2
if
they
had
planned
on
having
a
sale
they
held
off.
They
wanted
to
get
more
numbers
in
as
soon
as
they
were
able
to
get
q2
numbers
in
and
really
show
the
market
that
their
company
made
it
through
covid
and
actually
did
well.
H
H
H
There
are
lots
of
funds
in
the
market.
We
have
not
seen
any
slowdown
in
funds
coming
to
market
or
the
timeline
that
they
expect
to
close
their
fund.
In
fact,
it's
probably
quicker
than
it
ever
has
been,
so
funds
are
able
to
come
to
market
we've
seen
many
do
a
first
and
final
close
within
months
of
of
starting
their
fundraise
process.
H
Private
equity
firms
really
have
done
well
through
the
last
10
years
and
even
experiencing
kind
of
this
volatility
of
this
year.
If
they
have
performed
well
they're
able
to
come
to
the
market,
there's
a
huge
demand
still
for
good
funds.
So
we've
we've
seen
that
as
well.
We've
had
to
be
very
on
top
of
our
fundraising
and
forward
calendar
to
make
sure
we're
in
front
of
the
funds
that
we
want
to
be
in
front
of.
C
H
Okay,
so
our
commitment
pace,
I
would
say
within
your
portfolio
specifically-
has
been
on
pace
similar
to
what
it
has
been,
so
we
always
have
a
model
portfolio
for
your
program.
Our
expectation
was
that
we
would
make
three
primary
fund
commitments,
starting
in
basically
the
summer
so
2020
through
next
year.
We've
actually
made
those
three
commitments:
primary
fund
commitments.
H
H
The
deal
flow,
I
would
say
for
the
co-investment
bucket-
has
been
we've
had
a
lot
of
deal
flow,
so
we've
had
two
and
brian
could
speak
to
this
as
well,
really
look
at
how
much
we
have
remaining
to
commit
and
compare
that
to
how
much
we
have
in
our
deal
flow
pipeline
right
now,
because
if
we
were
to.
H
Not
look
at
it
in
terms
of
how
much
we
have
left
and
remaining
to
commit.
The
capital
would
be
gone
very
quickly
and
we're
trying
to
be
a
little
bit
careful
and
making
sure
we
have
commitments
and
capital
through
the
the
summer
of
2021..
So
yeah.
F
Maybe
I
can
chime
in
there
I'll
be
a
little
more
direct
about
it.
The
deal
flow's
been
amazing
and
I've
had
to
say
no
to
a
lot
of
things
that
were
kind
of
interesting,
because
the
one
thing
that
we
don't
want
to
do
is
be
in
a
situation
where
fantastic
opportunities
arise
because
of
maybe
future
dislocations
in
the
market,
and
we
don't
have
capital
to
deploy
because
we've
hit
our
target.
F
So
in
the
march
april
time
frame,
when
the
board
changes
asset
allocation,
we
reduced
the
buyout
target
from
eight
percent
to
six
percent,
which
was
a
significant.
You
know,
shift
versus
the
target
that
we've
had
for
several
years.
F
The
consequence
of
that
is
that
we
are
hitting
our
target
asset
allocation
number
earlier,
maybe
than
we
would
have
anticipated,
so
that
does
limit
the
amount
of
capital
that
we
have
for
biotype
investments
going
forward.
C
I
think
it
might
make
a
suggestion
if
the
other
trustees
find
it
useful.
Given
this
is
a
you
know,
you
come
every
quarter
and
there's
a
lag.
Maybe
there
could
be
a
page
on
at
least
a
qualitative
bullet
points
on
what
has
happened
in
the
in
the
quarter.
That's
passed
in
in
terms
of
commitments
and
where
we
are
versus
allocation,
and
if
there
are
more
opportunities
that
wait
at
least
we
know
you
know
we
can
start
thinking
about
it.
I
guess.
F
Yeah
we'll
work
with
the
inverter
to
to
put
something
like
that
into
the
next
report.
B
G
Thank
you,
mr
chairman.
Thank
you.
Casey
for
your
update
and
items,
2
c
d
and
e
will
all
be
covered
by
laura
wyrick.
So
I'm
going
to
turn
this
over
to
laura,
to
cover
those
items
with,
of
course,
time
for
discussion
and
questions
between
each
one
of
them
over
to
laura.
B
I
We're
having
a
crazy
santa
ana
winds
down
here
in
san
diego.
So
if
I'm
coughing,
it
is
that's
the
reason,
nothing,
nothing
more
nefarious.
So
here
on
the
screen,
we
have
the
second
quarter,
2020
private
markets
report.
So
as
as
usual,
this
is
the
public
version.
We
provide
a
more
detailed
version
to
staff
and
it
also
is
lagged
by
a
quarter,
as
you
know,
given
private
markets
valuations
availability.
I
So
if
we
take
a
look
at
page
two,
you
can
see
the
the
overall
summary
of
the
private
markets.
Programs.
I
So
you
can
think
of
that
as
a
benchmark
as
if
you
had
put
your
funds
in
public
markets
instead
of
private
and
that's
a
complicated
calculation
that
takes
into
account
account
daily
valuation.
Since
all
of
the
underlying
funds
in
private
markets
call
capital
over
time
and
also
distribute
it,
so
you
can
see
that
for
each
of
your
private
markets,
programs,
your
internal
rate
of
return
is
higher
than
what
you
would
have
captured
in
the
public
markets,
with
the
exception
of
private
debt,
which
is
relatively
close.
I
So
we
can
skip
ahead
to
page
four
to
look
at
commitments
this
past
quarter
and
the
second
quarter.
So
there
were
two
new
private
debt
funds
committed
to
with
12
million
dollars,
crestline
and
eagle
point,
and
you
can
see
below
the
largest
contributions
and
distributions
for
the
quarter.
You
can
see
that
there
were
more
contributions
than
distributions
in
the
second
quarter.
I
I
I
The
funds
are
slightly
dominated
by
western
europe
right
now,
that's
in
part
due
to
cross
ocean,
which
is
a
europe-focused
fund
in
which
your
fund
has
invested
in
a
couple
of
their
vintages
next
I'll
move
on
to
the
private
real
assets
program,
starting
on
page
eight
right
now.
The
the
value
of
this
program
is
only
one
percent
of
the
total
fund
relative
to
a
three
percent
policy
target.
So
it's
still
a
young
developing
program
and
you
can
see
on
page
nine
that
there
was
one
new
commitment.
I
I
I
Brookfield
infrastructure
there's
been
two
vintages
of
global
infrastructure
partners,
two
vintages
of
limerock
and
then
kimmerage
energy
as
well,
and
so
you
can
see
that
there's
only
a
couple
funds
that
have
a
meaningful
irr.
Yet
that
have
been
around
for
a
few
years,
brookfield
with
a
very
strong
irr
relative
to
the
peer
benchmark
and
global
infrastructure
partners
a
bit
weaker,
and
but
we
do
expect
that
to
change
as
that
fund.
Matures
I'm
taking
a
look
at
page
12.
I
You
can
see
that
we're
right
near
policy
target
for
real
estate
at
3.4
percent
of
the
total
fund
relative
to
a
target
of
three,
and
there
are
16
investments
in
the
program
on
page
14.
You
can
see
that
there
were
no
new
commitments
during
the
second
quarter,
but
you
can
see
the
contributions
and
distributions
over
time
I'll
skip
ahead
to
look
at
individual
funds
on
page
16..
I
So
it's
a
pretty
well
diversified
program
in
terms
of
vintage
year.
You
can
see
that
the
irr
of
the
program
is
in
the
double
digits
at
10
and
that's
pretty
much
right
on
with
the
peer
irr
for
the
total
program
and
then
taking
a
look
at
page
17.
As
I
mentioned,
you
can
see
that
vintage
year
exposure
is
relatively
diversified
with
a
bit
of
a
weight
in
2015
and
2017.
I
B
Thank
you
laura
any
questions.
Trustees
on
the
private
market,
presentation.
B
J
Thanks
andrew
question
is
really
around
sizing
of
some
of
the
commitments
I
noticed
on,
looks
like
page
six
and
seven
for
private
debt
and
real
assets,
particularly
if
you
look
at
originally
there.
In
2020,
we've
had
three
commitments
of
twelve
thousand
dollars:
each
I'm
sorry
twelve
million
dollars
each
versus
previous
commitments,
which
were
much
larger
in
size.
I'm
just
wondering
why
we're
getting
so
spread
out
and
why
we're
not
making
larger
commitments,
maybe
to
fewer
names.
I
Sure
I
I
will
answer
and
then
also
defer
to
brian
starr
as
well
on
staff.
So,
as
you
know,
there
are
pacing
plans
that
are
approved
and
then
staff
and
and
the
consultants
carry
them
out.
I
would
say,
on
private
debt
in
particular,
you
are
overweight.
I
The
target
with
the
new
asset
allocation
that
was
adopted
in
march,
so
right
now,
there's
5.1
percent
in
the
private
markets
or
private
debt
program
relative
to
a
three
target,
and
so
I
think
when
we
do
see
attractive
opportunities,
you
know
in
order
to
commit
and
diversify
those
bite.
Sizes
are
coming
down,
particularly
the
the
few
investments
that
were
made
back
in
2010
were
originally
a
five
percent
of
the
fund
opportunistic
target
rather
than
part
of
private
debt.
So
but
you're
right
that
there
are.
I
There
have
been
some
some
very
high
commitments
relative
to
what's
happening
now
on
private,
real
assets.
You
know
the
same
thing
really
where
we're
trying
to
diversify
between
infrastructure
and
natural
resources
and
not
take
too
much
risk,
particularly
when
you
get
into
energy.
That
can
be
a
really
volatile
area,
and
so
I'm
not
putting
too
many
eggs
in
one
basket,
I
think,
makes
sense,
but
also
defer
to
brian
starr,
who,
who
has
a
major
influence
over
how
investments
are
sized.
F
The
fund
had
an
11
target
allocation
and
was
significantly
underweight,
so
the
pacing
plan
and
subsequent
sizing
was
trying
to
get
to
11
and
and
then
in
short
order,
it
went
from
11
to
8
to
5
to
3..
So
you
know
when
we
look
at
sizing
our
funds
today,
I
think
relative
to
the
amount
of
capital
that
we
intended
to
commit
per
year.
The
sizing
actually
hasn't
changed.
We're
still
trying
to
do.
F
You
know
three
to
five
funds
per
per
year
and
get
a
diversified
portfolio
across
a
variety
of
strategies
in
real
assets.
It's
a
similar
concept.
I
would
suggest
that
there
may
be
greater
of
returns
in
private
real
assets
than
there
may
be
in
private
credit
and,
as
a
result,
we're
skewing
a
little
bit
smaller
there
and
we'll
probably
do
maybe
one
or
two
more
funds,
but
because
of
the
diversity
of
strategies
that
exist
within
private
real
assets
and
the
dispersion
of
returns.
That
would
result.
C
On
the
real
estate
portfolios,
given
you
know,
we've
continued
to
see
a
big
run-up
in
valuations
despite
covet,
are
you
expecting
more
distributions?
Are
people
trying
to
exit,
or
are
they
continuing
to
reinvest
in
some
of
these
in
these
funds?
Is
that
a
trend.
I
Yeah,
you
know,
I
I
think
it.
It
is
an
area
that
the
how
it
shakes
out
remains
to
be
seen.
So
I
haven't
seen
major
shifts
in
strategy
from
your
underlying
funds
in
terms
of
trying
to
liquidate
a
lot
of
the
portfolios
or
trying
to
make
a
lot
of
new
investments.
I
think
a
lot
of
folks
are
sort
of
just
staying
the
course
at
this
point
and
waiting
to
see
what
happens.
I
You
know
you
know
there
could
be
some
really
long-term
secular
shifts
in
terms
of
more
people
working
from
home
and
that
sort
of
thing,
but
for
the
most
part
I
think
most
most
businesses
office.
You
know
those
types
of
things
are
still
making
payments
to
their
landlords
and
and
a
lot
of
people
are
just
sort
of
holding
tight
for
now.
F
D
D
Are
trying
to
be
more
patient
waiting
for
the
markets
to
open
up
and
taking
longer
to
hold
on
to
assets
beyond
what
they
had
originally
planned
for,
but
spending
more
money
to
maintain.
B
B
If
not
laura,
we
could
go
ahead
and
move
on
to
the
presentation
for
q3
performance
report
for
the
pension
fund.
I
Great
okay,
so
I'm
really
excited
to
present
this
report
today
because
of
how
fabulous
your
returns
look-
and
that's
always
that's
always
great
to
talk
about
so
I'm
starting
out
with
the
market
environment.
On
page
four,
you
can
see
that
the
third
quarter
was
a
really
strong
quarter
for
risk
assets.
I
Emerging
markets,
equity
was
the
strongest
performing
major
asset
class,
with
a
return
of
almost
double
digits
for
the
quarter,
followed
by
u.s
equities
with
the
russell
3000
commodities
which
bounced
back
a
huge
amount
of
over
nine
percent
and
then
followed
by
small
cap
stocks,
developed
international
and
then
high
quality
bonds
at
the
bottom,
but
really
every
major
asset
class
posted
a
positive
return
for
the
third
quarter
of
2020.
I
and
that's
despite
some
volatility
within
the
quarter
and
negative
returns
for
individual
months,
but
came
back
very
strong.
I
So
with
that,
I
will
skip
ahead
to
your
individual
performance,
starting
on
page
22..
As
usual,
we
have
in
here
some
commentary.
We
have
changes
at
the
individual
managers,
we
have
the
watch
list
which
has
not
changed
and-
and
you
know
I'm
happy
to
take
any
questions
on
any
of
that,
but
I
will
start
on
page
22
with
the
total
asset
allocation
for
the
pension
plan,
and
you
can
see
that
the
current
allocations
for
individual
asset
classes
were
very
close
to
their
long-term
targets.
I
These
are
the
targets
that
were
adopted
in
mid-march,
with
probably
the
most
fabulous
timing
of
any
institutional
investor,
and
you
can
see
the
total
market
value
of
4.1
billion.
As
of
the
end
of
september,
taking
a
look
at
page
23
for
performance,
you
can
see
that
the
total
fund
for
the
quarter
and
which
is
also
the
fiscal
year
to
date
period,
was
up
6.1
in
that
three-month
period,
bringing
the
calendar
year
to
date
to
four
percent
and
the
trailing
one
year
to
nine
percent.
I
You
can
see
that
the
return
for
the
quarter
and
the
year
to
date
period,
which
was
a
period
that
was
marked
by
a
huge
decline
and
also
a
huge
rebound
so
lots
of
different
individual
tiny
market
environments
within
that
calendar
year
to
date
period.
I
Both
of
those
time
periods,
your
plan
was
in
the
top
decile
of
peer
returns
of
the
public
defined
benefit
greater
than
a
billion
dollar
universe,
and
we
also
have,
as
you
know,
a
variety
of
benchmarks,
the
policy
benchmark,
the
investment
benchmark
portfolio,
which
is
what
you
could
implement
without
without
private
markets
and
and
through
indexes,
the
low-cost,
passive
portfolio,
a
60-40
and
also
the
liability
benchmark
portfolio,
and
you
can
see
that
recent
returns
outperform
all
of
those
benchmarks
and
the
peer
group.
I
The
reason
for
the
outperformance,
if
you
look
through
individual
asset
classes,
is
that
nearly
every
asset
class
outperformed,
its
relevant
benchmark,
particularly
bright
spots,
were
in
public
equity.
Global
equity
was
up
just
for
the
quarter.
11.3
percent
for
your
fund,
emerging
markets,
equity
was
also
up
double
digits
up
11
for
the
quarter
I'll,
take
a
look
and
highlight
a
few
individual
managers,
starting
on
page
27.,
as
I
mentioned,
you
know
an
enormous
gulf
between
growth
and
value.
I
So
it's
been
a
story
of
really
a
great
time
for
the
asset
class
global
growth,
but
also
really
a
strong
outperformance
by
your
manager
in
that
space.
It's
a
really
concentrated
portfolio,
even
cove
street
small
cap
value
on
this
page,
which
I
think
you
might
recall,
has
struggled
a
bit
historically
being
in
that
valued
value,
space
and
being
highly
concentrated
did
much
better
than
the
russell
2000
value
and
the
value
equity
median.
I
So
that's
nice
to
see
even
the
value
was
more
challenged
and
then
taking
a
look
at
page
29,
oberweis
international
opportunities,
which
is
a
non-us
small
cap
growth
manager,
was
up
18.3
percent
just
for
the
quarter,
32
for
the
year-to-date
period
that
nine-month
period
and
43
for
the
trailing
year,
top
decile
returns
again
versus
the
peer
group
for
all
trailing
time
periods,
since
you
hired
them
in
march
of
2014
and
then
within
emerging
markets.
Equity
gqg
is
really
a
strong
story.
I
We
all
waited
for
him
to
get
situated
and
start
his
own
firm,
and
then
he
also
provided
a
fee
discount
to
your
plan
and
other
investors
who
followed
him
to
his
new
firm
and
he's
really
executed.
Incredibly
well,
since
you
hired
him
in
july
of
2017.,
also
largely
top
decile
returns
more
than
doubling
the
emerging
markets
index
for
the
trailing
year
with
a
return
of
23,
and
the
story
here
is
just
really
strong.
Stock
selection,
in
mainly
growth
names
and
also
strong
country
selection,
with
some
big
out
performance
in
china
and
taiwan.
I
So
those
are
the
managers
that
I
wanted
to
highlight
and
then
I
wanted
to
skip
down
to
page
51
just
to
talk
about
overall
portfolio
risk
statistics
relative
to
the
peer
group.
And
so,
if
you
take
a
look
at
page
51,
you
can
see
that
the
return
for
the
trailing
one
year
was,
you
know
ranked
very
highly.
I
The
standard
deviation,
which
is
a
measure
of
risk,
was
lower
than
the
peer
group,
so
you
had
a
higher
return,
a
lower
risk
and
so
the
measure
of
risk
adjusted
return
on
this
slide,
which
is
the
third
column,
the
sharp
ratio.
You
can
see
your
circle
there
at
the
very
top
of
the
peer
group
ranking
in
the
fifth
percentile
and
then
another
just
to
dig
into
the
pure
relative
performance
again
on
page
56.
I
We
know
that
you
all
get
beat
up
when
peer
performance
doesn't
look
good,
and
so
we
want
to
highlight
it
when
it
does.
And
so,
if
you
take
a
look
at
at
page
56
here,
you
can
see
the
really
strong
performance
versus
the
policy
versus
the
investable
benchmark
and
also
versus
the
peer
group
for,
for
these
trailing
time
periods.
More
recently,
so
I'm
happy
to
take
any
questions
on
the
the
pension
retirement
plan.
I
It
looks
like
there's
a
few
raised
hands.
Should
I.
J
D
L
J
J
J
Hey
we're
there,
okay,
so
we
have
in
the
past
that
the
investment
committee
talked
about
trying
to
get
our
plan
moved
into
the
northwest
quadrant,
and
you
can
see
that
we're
finally
starting
to
shift
into
that
area
where
we're
slightly
outperforming
our
benchmark,
we're
doing
it
with
less
risk,
we're
there
on
a
one
and
three-year
basis.
This
represents
the
time
period
that
prabhu
has
been
our
cio.
J
I
do
have
a
specific
question
on
artisan.
I
know
that
we
are
using
two
different
investment
teams
at
artisan
with
different
styles,
but
collectively
we
have
nearly
600
million
dollars
with
that
firm.
It's
nearly
15
of
planned
assets,
and
I
don't
know
where
we
sit
with
their
investment
policy
statement.
I
Yeah,
I
I
can
start
and
then
I
don't
know
if
christina
wants
to
to
add
anything,
but
you
know
we
do
view
them
as
as
two
different.
They
are
two
completely
different
teams,
one
based
in
milwaukee
and
one
in
san
francisco
different
individuals.
I
So
while
they
are
under
the
artisan
umbrella,
you
know
we
feel
comfortable
that
you
know,
there's
not
the
same
key
man
risk,
there's
not
the
same
execution
risk
and
things
like
that.
You
know
we
are
constantly
evaluating
how
to
allocate
public
equity-
and
maybe
maybe,
if
christine,
is
on
the
line.
If
she
wants
to
say
anything
about
that
feel
free.
D
Yeah,
thank
you.
So
I
agree
with
laura
artisan.
It's
a
very
special
situation.
Their
their
investment
teams
are
sort
of
independent
of
each
other
and
the
way
that
we
blend
them
have
worked
out
for
the
portfolio
and
we
are
aware
of
the
sizeable
allocation
we
have
with
each
of
them.
So
as
of
last
month,
we
actually
reduced
the
global
opportunities
a
little
bit
given
one.
D
They
have
done
such
a
good
job
in
the
past
one
three
five
years
and
two
it's
up
outside
the
altercation
relative
to
the
value
strategy,
but
we
definitely
would
monitor
this
situation
in
terms
of
the
organization
stability,
as
well
as
a
style
balance
to
make
sure
that
we
don't
take
outside
the
risk
of
for
each
of
those
styles.
D
I
don't
recall
the
limit
with
one
investment
firm.
I
think
we
definitely
have
a
10
with
the
one
active.
I
D
We'll
we'll
go
to
the
ips
and
and
and
check
okay.
J
L
Just
just
to
address
that
quickly,
it
is
15,
but
it's
broken
out
by
different
types
of
underlying
accounts,
whether
it's
an
sma
or
a
commingled
fund,
which
in
in
this
case
that
global
opportunities
and
global
value
are
two
different
types
of
accounts.
One
is
an
estimate
and
one
of
the
one
is
a
chemical
product.
L
D
Yeah,
thank
you
andrew
I,
I
would
agree
with
vince
that
maybe
that's
an
issue.
The
artisan
issue
is
something
we
should
you
know
visit,
I
guess,
or
maybe
the
ic,
a
quick
question,
so
the
performance
is
good
and
congratulations
to
the
team
investment
team,
probably
on
the
team
gqg.
D
I
think
when
christina
made
the
presentation
a
performance
is
great
and
I
asked
a
question
whether
the
fair
comparison
would
be
with
the
emerging
markets,
growth
benchmark,
any
thoughts
on
that
and
I
think
she
kind
of
agreed
that
maybe
that's
a
that
would
be
the
right
comparison.
I
We've
talked
to
our
team
about
that,
and,
and
we
think
it
would
make
sense
to
look
at
that
as
a
secondary
benchmark.
You
know
it's
a
if
we
look
at
gqg
from
a
style
perspective.
They
are
growth,
but
not
not
quite
as
growthy
as
the
growth
benchmark
and
so
similar
to
how
we
might
look
at
you
know
an
artisan
value
with
looking
at
you
know
the
broad
benchmark
and
also
the
value
one
we
can.
We
could
add
that
as
a
secondary
benchmark.
D
Hi,
thank
you.
Thank
you
laura,
and
congratulations
and
team.
These
are.
These
are
great
great
results
on
this
on
this
this
year.
So
far,
just
two
questions:
one's
a
quick
one,
the
lord
on
the
on
the
summary,
as
well
as
on
on
on
the
results
on
the
total
fund.
The
growth
benchmark
is
is
listed
as
8.8,
but
I
just
I
couldn't
find
exactly
what
that
growth
benchmark
is
is.
D
I
Oh,
so
the
growth
benchmark
is
the
specific
benchmark
for
the
assets
that
are
grouped
into
growth,
which
is
assets
in
your
fund,
specifically
that
are
designed
to
to
grow
so
public
equity
private
equity.
What
else
do
we
include
in
this
bucket?
So
that's
that's
sort
of
the
functional
asset
class.
We
have
the
three
functional
asset
classes,
which
are
growth,
low,
beta
and
other,
so
that
growth
benchmark
is
a
specific
san,
jose
developed
benchmark
for
the
functional
growth
asset
class.
I
And
if
we
take
a
look,
we
have
a
benchmark
history
at
the
very
back
of
the
book
on
page
63
that
the
jared
has
pulled
up
so
currently
you
know
it
changes
and
has
changed
historically
based
on
the
composition
of
the
growth
assets.
But
presently
it's
made
up
of
the
individual,
underlying
public
equity,
benchmark,
private
equity,
benchmark
to
emerging
market
debt
benchmarks
and
then
credit.
So
if
we
look
below
the
public
benchmark,
then
is
made
up
of
msci,
usa,
msci,
world
x,
usa
and
msci
emerging
markets.
I
D
Great
and
it
may
be
probably
not
to
jump
ahead
to
next-
you
know
the
next
couple
of
quarters,
but
how
are
we
positioned
in
terms
of
what
our
thought
process
and
process
would
be
if
there
needs
to
be
another?
G
Yeah
yeah
great
question
trustee
lee,
you
know.
Firstly,
I
would
say
that
we
are
long-term
investors
and
you
know
there
will
be
periodic
shocks
to
the
market
and
changes,
and
I
don't
anticipate
a
steep
drawdown
like
the
one
that
we
saw
in
march,
where
the
markets
were
down
35
percent
and
when
we,
when
it
when
that
happened,
we
were
fortunate
in
that
we
had
an
allocation
to
low
beta
that
you
know
we
took
advantage
of.
G
But
what
I
would
say
is
that
we
look
at
our
strategic
asset
allocation
on
an
annual
basis.
We
can
certainly
look
at
it
more
frequently
if
required
at
a
minimum.
We
look
at
it
on
an
annual
basis.
So
the
way
the
process
works-
and
this
might
actually
work
out
well
in
terms
of
our
timing
with
the
vaccine
and
its
rollout-
is
that
we
get
capital
markets
assumptions
revised
capital
market
assumptions
from
from
makita
in
january.
G
We
already
actually
have
them
from
varus.
I
just
got
them
this
week
and
then
we
actually
poll
several
other
buy
side
managers
and
we
look
at
their
capital
market
assumptions
to
make
sure
that
makida's
cmas
are
reasonable
and
then
once
we
take
a
look
at
that-
and
these
are,
of
course,
capital
market
assumptions
over
10
and
20
years
and
they're,
not
necessarily
over
one
in
three
years.
It's
just
much
harder
to
get
shorter
term
assumptions
with
any
great
accuracy,
and
so
we
take
that
into
account.
G
And
then
we
discuss
that
at
the
ic
we
run
it
through
the
optimizer,
and
then
we
see
whether
we
need
to
change
our
strategic
asset
allocation
or
not.
In
general,
my
bias
and
my
preference
is
that
you
know
we
look
at
our
a
risk,
a
risk
target
which
is
you
know,
sigma
12,
and
then
we
adjust
our
asset
allocation
to
that
and
we
hold
that
steady
and
we
make
minor
changes.
So
for
a
long
time
now
you
know
one.
G
One
reason
why
our
peer
relative
performance
looks
so
good
now
compared
to
history,
is
that
we
were
under
shooting
that
12
risk
target.
But
you
know
in
our
defense
we
did
not
know
what
the
number
was
and
so
varus
finally
did
a
study
and
said
your
risk.
Tolerance
is
12
and
we
were
able
to
take
advantage
of
that
with
this
with
this
drawdown
and
we
change
our
allocation
to
roughly
70
30.,
and
so
I
think
that
we
would
hold
this
study.
Of
course
it's.
B
Thank
you,
howard.
I
do
have
a
question
and
it's
probably
more
directed
to
staff,
but
definitely
makita
could
chime
in
also
go
on
page
19.
B
Looking
at
third
quarter
manager
summary
looking
at
dimensional
and
blue
bay,
you
know,
dimensional,
you
know,
has
underperformed,
you
know
by
120
basis
points
over
three
years,
80
basis
points
over
five
years
and
has
been
always
ranked
in
the
87th
percentile
blue
bay,
very
similar,
but
a
longer
history
of
underperforming.
B
You
know
versus
you
know
what
a
five-year
track
record
of
you
know:
underperforming
in
the
87th
percentile
compared
to
peers
so
forth.
Can
I
just
get
your
guys's
thinking
on
that?
When
you
view
these
two
or
just
in
general,
these
managers.
G
L
So
if
you'll
remember,
blue
bay
is
in
the
emd,
our
emerging
markets,
debt
allocation
paired
with
another
strategy
iguazu,
and
so
the
reason
for
blue
basin
inclusion
in
the
plan
is
as
part
of
that
structure.
Blue
bay
serves
as
the
long
only
benchmark
like
vehicle
in
that
emd
structure.
L
L
Actually
now
clearly
blue
bays
had
some
issues
holding
up
its
end
of
of
that
structure,
and
so
we
have
been
for
a
period
of
time
now,
looking
at
different
replacements,
we
actually
made
a
selection
and
we're
in
the
process
of
funding
that.
So
you
asked
this
question
right
before
we
changed
the
manager
out
good
timing,
but
I
would
expect
that
actual
transition
to
the
new
strategy
to
happen
before
the
end
of
the
calendar
year
in
general.
L
The
decision
to
change
an
active
strategy
can
come
for
for
reasons
other
than
say
you
know,
pm
turnover
or
issues
at
the
firm,
broadly
changing
a
a
strategy
out
just
because
of
performance
is
kind
of
a
complicated
decision
right
you're.
Looking
at
more,
how
did
the
strategy
perform
relative
to
expectations?
L
So
if
it's
a
value
strategy,
it
was
included
as
part
of
a
maybe
a
value
growth
pairing.
So
for-
and
I
won't
speak
entirely
for
christina
here-
but
when
I
think
about
dimensional-
I
think
about
dimensional
as
a
kind
of
a
pairing
with
gqg.
So
gqg
was
a
great
strategy
we
highlighted
earlier,
but
part
of
the
reason
we
can
afford
to
have
that
kind
of
growth.
Heater
type
exposure
is
that
it's
offset
by
some
of
the
value
type
exposure
in
something
like
dimensional
or
in
blue
bay.
L
Short
end
in
terms
of
exposure,
and
so
you
know
one
one
of
these
strategies
allows
us
to
hold
the
other
in
some
kind
of
paired
structure,
and
so
that
you
know
we
have
different
expectations
for
each
end
of
that
structure.
And
then
the
evaluation
is
well.
There
are.
L
How
are
they
performing
relative
to
those
expectations
if,
if
dimensional
is
underperforming,
because
em
value
overall
is
underperforming,
that's
one
kind
of
decision
if
dimensional
is
underperforming,
but
em
value
is
doing
well,
then
you
know
that's
a
kind
of
an
easier
decision
for
blue
bay
specifically
well,
you
know
they
they've
been
performing
relatively
in
line
with
benchmark.
Certainly
we've
looking:
we've
looked
for
and
selected
a
different
option
there,
because
it's
just
been
a
little
bit
stagnant.
B
And
jay,
that's
I
mean
that's
good
in
sight
in
the
sense
that
you
know
you
mentioned
you're,
looking
at
blue
bay,
more
as
a
parish,
trade
or
investment,
and
not
as
a
solo
investment,
and
so
so,
when
we're
looking
at
this
third
quarter
manager,
summary
and
just
their
returns
over
the
last
three
five
years
and
and
longer
it's
it's
not
a
good
comparison,
because
you
got
to
look
at
the
other
other
side
of
the
trade
too.
That's
what
I'm
hearing
correct.
L
Yeah,
that's
that's
right
and
I
don't
mean
pairs
in
the
in
terms
of
like
we're
long,
one
and
short
the
other,
but
pairs
more
like.
If
you
look
at
the
emd
line
for
the
for
the
structure
overall,
we're
performing,
I
would
call
it
lights
out
relative
to
the
policy
benchmark.
Okay,
part
of
the
reason,
for
that
is
the
inclusion
of
iguazu
right.
But
if
we
held
only
iguazu,
then
we
would
have
a
a
very
high
tracking
error
relative
to
the
to
the
policy
benchmark.
L
It's
I
mean
it's
worked
in
in
the
favor
of
the
strategy,
but
it
would
potentially
lead
to
high
deviations
and
performance
relative
to
the
policy
benchmark,
which
is
not
something
we're
we're
really
looking
for.
So
we
even
it
out
by
holding
something
more
benchmark
like
in
blue
bay,
right
and
and
even
though,
that
blue
base
kind
of
had
middling
returns.
L
I
Yeah,
I
mean,
I
think,
even
put
more
simply,
you
know
if
everything
is
doing
well
at
the
same
time,
that
means
we
have
a
risk
of
everything
doing
poorly
at
the
same
time
too,
if
there's
a
style
shift
and
so
we're
trying
to
to
balance
things
so
that
there's
some
insurance,
that
if
market
dynamics
change,
you
know
a
huge
amount
that
hopefully
the
allocations,
you
know
don't
underperform
a
huge
amount.
B
Any
other
questions
from
trustees
before
we
move
on
to
the
healthcare
trust.
L
Laura
hello,
everybody
I'll
cover
healthcare
here
really
quickly,
so
you
can
see
that
the
healthcare
trust
had
194
million
here
at
the
end
of
the
quarter.
That's
up
16
million
from
the
prior
quarter,
in
that
16
million
difference
is
7
million
from
cash
flows
and
9
million
from
investments
of
everything
here
very
close
to
the
policy
target.
L
Okay,
as
you
can
see,
for
the
corner,
matching
the
benchmark
up:
five
percent-
that's
just
for
the
quarter
under
the
fiscal
year
today,
column
here
and
then
for
the
past
year,
outperforming
the
benchmark
by
quite
a
bit
up
7.3
against
6.4,
and
I've
had
an
estimate
through
a
couple
days
ago,
so
through
december
1st,
just
this
quarter.
L
So,
basically,
two
months
and
a
day,
the
plan
is
of
another
6.9,
bringing
the
fiscal
year-to-date
estimate
to
up
over
12
percent,
so
very
strong
returns
november,
in
particular
a
very
strong
market
for
for
equities.
L
You
know,
I
know
a
lot
of
the
investments
in
here
are
passive,
so
one
thing
I'll
just
point
out
before
handing
it
back
is
we've
added
a
couple
slides
in
here
just
to
add
some
context
on
previous
conversations,
so
we
just
added
a
pure
universe.
Comparison
in
here
for
a
you
know,
a
dollar
range
for
health
care
and
health
and
welfare
plans
between
50
and
250
million
dollars
in
assets.
L
So
you
can
see
highlight
here
for
the
quarter
and
for
the
past
year
that
the
plan
has
done
quite
well
for
the
past
year
and
the
top
third
of
the
peer
group
and
another
another
thing
we've
talked
about
in
the
past
is
the
ass
allocation
relative
to
other
health
clinics.
You
can
see
more
aggressive
inequity
and
more
conservative
on
fixed
income.
I
That's
another
effect
of
these
wins
we're
having
down
here.
Yeah.
L
So
I'm
just
pointing
out
that
we
added
a
couple
of
pages
back
here
for
the
universe
comparison
and
we
talked
about
the
asset
allocation
of
health
care
and
it
being
more
aggressive
toward
equities
relative
to
peers
and
something
to
keep
in
mind
when
we
do
the
next
asset
allocation
for
the
healthcare
trust.
I
Yeah,
the
only
things
that
I
would
add
is
I
am
I
neglected
to
to
mention
recent
performance
estimates
since
september
30
on
the
retirement
plan
and
also
on
healthcare-
and
I
think
probably
mentioned
this
as
well
before,
but
just
to
reiterate,
our
estimates
through
the
day
before
yesterday
are
the
fiscal
year-to-date
performance.
So
since
june
30th
for
the
pension
is
up
12.6
and
for
the
healthcare
is
up
12.4.
I
So
really
strong.
Really,
you
know
less
than
half
a
year
return
on
both
plans.
B
All
right,
any
trustees
have
questions.
B
J
Already
keep
asking
questions
here,
but
I
guess
I'm
thinking
this
is
obviously
a
much
smaller
plan
compared
to
the
the
overall
pension
plan.
When
we
made
our
strategic
asset
allocation
shift
in
march,
we
did
not
do
anything
with
this
plan.
How
might
we
go
about
in
the
future
tying
these
two
together
more
closely.
I
Yeah,
that's
a
great
question,
that's
something
that
we've
talked
about
with
staff,
because
often,
as
you
know,
when
there's
a
big
shift
in
the
retirement
plan,
we
go
through
the
asset
allocation
process.
It
takes
some
time
at
the
ic.
It
goes
to
the
board.
Maybe
there's
some
changes
after
that
it
takes.
You
know
a
couple
of
meetings
of
the
board
and
by
the
time
that
shift
is
usually
undertaken
and
the
reporting's
updated
it's.
You
know
it's
within
six
months
of
when
we're
going
to
do
it
all
again.
I
You
know
with
the
the
new
asset
allocation,
and
so
we've
chatted
with
staff
about
how
we
streamline
that
and
bring
that
either
at
the
same
time,
or
you
know,
one
idea
that
that
I
think
we
need
to
talk
about
further,
but
might
make
sense,
is
to
allow
staff
to
move
these
allocations
to
implement
in
the
same
spirit
as
the
pension,
maybe
to
to
automate
and
make
things
a
bit
more
efficient.
So
it's
a
great
question
and
something
that
we're
focused
on
making
sure
happens
whenever
asset
allocation
shifts
in
the
future.
G
Yeah
and
if,
if
I
may
add,
that's
exactly
right,
laura
and
I've
had
several
discussions
on
this,
and
this
is
something
that
I'd
like
to
bring
for
forth
to
the
board
in
future.
G
Is
that
when
we
make
shifts
to
the
pension
plan
that
we
also
in
that
same
meeting,
follow
up
with
pension
changes
to
the
health
care
trust
so
that
they
move
in
line
and
that's
something
that
we
will
discuss
and
bring
to
the
board
early
next
year.
B
If
not
probably,
do
you
have
any
follow-up
comments
before
we
close
out
the
investment
section.
G
Yes,
I
do,
mr
chairman,
thank
you.
Firstly,
thank
you
for
your
kind
comments
on
performance,
starting
with
trustee
sunziri
and
other
trustees.
G
Really,
the
credit
for
this
goes
to
all
of
you
for
how
quickly
the
boards
have
acted
and
worked
closely
with
staff
and
consultants
and
trustee
lanza
has
actually
pointed
this
out
to
roberto
and
me,
and
so
I'll
be
the
my
duties
if
I
also
did
not
for
the
record
thank
former
ic
chair
oz,
trustee
oswald,
who,
when
we
were
going
through
this
process,
was
the
ic
chair
and
really
pushed
pushed
us
to
looking
at
more
aggressive
mixes
in
line
with
our
ability
to
take
a
12.
G
You
know
standard
deviation
of
risk,
and
so
thanks
to
all
of
you
that
we've
done
this
and
hopefully
we'll
continue
to
work
together
closely
and
I'm
looking
forward
to
our
next
exercise
on
strategic
asset
allocation.
Thank
you.
B
Thank
you,
prabhu,
and
thank
you
laura
and
jared
for
being
here
today
and
going
through
the
three
different
presentations
with
us
hope
you
have
a
great
holiday
season
and
see
you
next
year.
I
Thank
you
yeah
for
anybody
that
we
don't
see
later
this
month,
happy
holidays
and
thank
you
very
much
stay
safe
and
healthy.
B
All
right
so
that
takes
care
of
investments,
I'm
just
going
to
go
ahead
and
go
to
3a
presentations
of
preliminary
2020
pensions,
actuarial
evaluation
results
and
discussion
and
action
on
amortization,
payment,
increase
rate
and
economic
assumptions.
This
is
a
carryover
conversation
part
two
from
last
month's
presentation
by
bill
hallmark
and
chiron.
B
As
you
remember,
at
the
end
of
the
presentation,
we
gave
directions
for
bill
to
update
the
information
with
some
criteria
that
we
were
looking
at,
and
he
is
here
to
present
that
today,
bill.
M
Good
morning
morning,
everyone
good
to
see
you
and
yes,
we
we
have
the
updated
information
and
some
cost
estimates
and
some
alternatives
for
you
to
look
at.
So
I
I'm.
M
I
also
have
ann
harper
with
me,
who's,
going
to
help
me
with
the
presentation,
but
just
to
sort
of
set
this
in
context.
Last
month
we
presented
some
preliminary
evaluation
results
and
reviewed
the
economic
assumptions.
We
had
also
done
some
background
on
how
we
got
to
where
we
are
today.
M
Today
we
are
hoping
to
get
a
formal
adoption
on
the
economic
assumptions
and
potentially
some
adjustments
to
amortization
methods
that
we'll
talk
about
later
in
the
presentation
and
then
january,
we
would
come
back
with
the
final
pension
valuation
results,
as
well
as
the
assumptions
for
the
opec
valuation
and
then
in
february,
we'll
have
the
final
open.
M
Okay,
so
just
as
a
reminder,
based
on
the
preliminary
results,
we
had
found
that
the
preliminary
results
were
very
close
to
the
projections
we
had
from
2019
and,
in
particular
the
expected
city
contribution
for
next
year
was
about
216
million.
M
I
think
it's
216.4
million-
and
I
will
note
here
because
we'll
talk
about
this
later-
that
for
2023
we're
projecting
a
drop
in
the
contribution
before
it
continues
with
a
gradual
increase
after
that,
and
that
has
to
do
with
the
amortizations
that
we
have
currently
set
up
and
a
couple
of
the
amortizations
are
being
finished
off
in
2022..
M
So
the
alternatives
we
talked
about
at
the
last
meeting
were
reducing
the
price
inflation
assumption
from
two
and
a
half
to
two
and
a
quarter
wage
inflation
we
suggested
reflecting
the
currently
negotiated
increases.
So
fire
has
some
increases
negotiated
for
the
next
couple
years.
The
police
contract
is
out
so
there
there
are
no
future
negotiated,
increases
on
that
and
then
reducing
the
ultimate
assumption
from
currently
three
and
a
quarter
percent
a
year
to
either
three
or
two
point:
seven:
five.
M
M
The
amortization
payment
increases.
So
each
year
the
dollar
amount
of
the
payment
on
the
amortizations
increases
by
two
and
a
half
percent.
We
tied
that
to
inflation
and
we're
suggesting
keeping
that
tied
to
our
inflation
assumption.
So
if
we
reduce
the
inflation
assumption
to
two
and
a
quarter,
it
would
reduce
the
rate
of
increase
in
those
amortization
payments
and
then
the
discount
rate.
From
the
discussion
last
meeting,
we
talked
about
three
alternatives:
6.75
the
current
assumption
or
reducing
it,
an
eighth
or
a
quarter
percent.
M
There
was
some
concern
given
the
current
budget
situations
about
hitting
the
city
with
larger
contributions
this
year,
and
so
we
were
tasked
with
looking
at
some
alternatives
and
how
to
address
that,
and
so
there
are
some
amortization
adjustments.
We're
going
to
talk
about
that
could
partially
mitigate
the
immediate
cost
impact
to
the
city
of
any
change
in
the
discount
rate.
N
Good
morning,
everyone
and
it's
nice
to
see
you
all
this
slide
here
is
showing
the
distribution
of
inflation
assumptions
on
the
left
side,
you're,
seeing
the
economic
forecasters
and
investment
consultants,
distribution
and
their
meeting
is
about
two
percent,
and
you
can
see
that
san
jose
police
and
fires.
Assumption
of
2.5
is
slightly
above
that
median
amount
and,
on
the
right
hand,
side
are
the
public
sector
pension
plan
assumptions.
N
You
see
nationally
that
san
jose
is
right
in
the
middle
at
2.5
percent
in
the
median
and
then
with
california
you're
on
the
lower
end
and
the
reason
being
that
california
assumptions
are
slightly
higher.
It
tends
to
be
because
california's
plans,
inflation
assumption,
impacts,
the
cola
assumption
and
the
cola
assumption
is
really
tied
to
local
cpi.
So
by
lowering
inflation,
you
might
undervalue
pension
plans,
but
this
doesn't
pertain
to
san
jose
because
they
have
a
fixed
three
percent
and
two
percent.
N
The
wage
inflation
assumption
we
are
suggesting
that
you
reduce
your
wage
inflation
assumption
from
3.25
down
to
either
3
or
2.75
percent,
and
what
this
represents
is
an
across-the-board
wage
increases
and
also
the
payroll
growth
rate
and,
as
bill
had
mentioned,
the
the
fire.
We
already
know
what
those
wage
inflations
will
be
in
the
next
two
or
three
years
because
of
the
bargained
agreements,
and
so
we're
proposing
to
use
those
in
our
valuation
assumption
and
then
just
reducing
the
ultimate
rate
down
to
three
percent
or
2.75.
N
The
amortization
payment
increase
rate
as
bill
had
mentioned,
that
it
currently
is
tied
to
price
inflation,
which
means
that
pavements
will
grow
at
our
price
inflation
assumption,
which
is
less
than
our
assumed
payroll
growth.
And
this
is
a
more
conservative
approach
than
using
a
level
percentage
of
payroll,
and
we,
since
we
expect
the
ua
uil
payments
to
decrease
as
a
percentage
of
payroll.
So
we're
recommending
that
we
keep
this
tied
to
the
inflation
assumption
for
a
slightly
more
conservative
approach.
N
N
The
green
bars
represent
that
in
risk-free
rate
or
the
10-year
treasury
rate,
and
you
can
see
back
in
1995
25
years
ago,
the
the
return
on
those
treasuries
was
about
six
and
a
quarter
percent,
while
the
police
and
fire
assumed
rate
of
return
was
eight
percent,
so
that
leaves
a
risk
premium
of
slightly
less
than
two
percent.
N
But
when
you
fast
forward
all
the
way
to
2020
to
today,
the
discount
rate
has
redu
has
been
reduced
by
only
one
and
a
quarter
percent,
while
the
the
return
on
the
10-year
treasuries
has
gone
all
the
way
down
to
less
than
a
percent.
N
So
what
that
means
is
that
your
implied
risk
premium
has
increased
by
about
five
and
a
half
percent
so,
and
you
basically
have
to
get
your
returns
from
assets
that
are,
that
are
much
more
risky
than
the
10-year
treasury.
N
Makita
provides
us
with
a
10-year
horizon
on
the
capital
market
assumptions
and
a
20-year
horizon,
and
the
median
return
for
your
portfolio
on
a
ten
year
basis
is
around
six
percent
and
then,
when
you
look
out
twenty
years,
it's
closer
to
six
point.
Nine
percent.
N
N
So
the
last
slide
was
a
static
look
based
on
the
2020
capital
market
assumptions,
and
we
wanted
to
show
you
here
how
those
capital
market
assumptions
have
fluctuated
over
the
last
few
years
and
especially
since
2018,
the
gray
bars
represent
at
the
bottom.
The
10-year
expected
return
from
makita
and
then
the
20-year
on
the
top.
So
back
in
2016,
that
range
was
6.7
percent
to
7.7
percent,
and
then
the
diamonds
represent
san
jose
police
and
fires
discount
rate
at
the
time.
N
So
you
can
see
that
for
the
most
part
you
are
setting
your
discount
rate
right
in
that
range
between
the
10
year
and
the
20
year,
and
have
consistently
done
so
except
for
2019,
and
we
know
that
that
was
a
an
outlier
year
where
the
capital
market
assumptions
were
set
based
on
the
december
2018
economic
environment,
where
there
was
a
very
large
downturn
in
the
markets
at
that
time.
N
So
the
projected
forecast
for
the
for
returns
was
much
was
much
higher
because
of
that,
because
the
base
that
they
were
projected
on.
So
we
are
suggesting
the
three
options
of
remaining
at
6.75:
reducing
the
discount
rate
12
and
a
half
basis
points
to
6.625
or
reducing
it,
a
quarter
percent
down
to
6.5
percent.
N
So,
finally,
here
we're
showing
the
cost
impacts
of
all
of
our
suggested
changes
or
recommendations
for
your
economic
assumptions.
The
there
are
five
different
scenarios.
If
you
want
to
break
it
up,
depending
on
which,
how
you
want
or
based
on
what
you
ultimately
decide,
the
the
left
hand
corner
and
the
upper
block
there
shows
6.75
if
you
stayed
at
that
discount
rate
but
reduced
your
wage
inflation
to
3,
it's
showing
the
actual
value
of
assets,
the
member
rate,
the
city
rate
and
the
city
contribution
amount.
N
N
N
The
contribution
rate
would
increase
by
about
three
percent
of
pay
and
then
the
contra,
the
city
contribution
of
dollar
amount,
would
increase
by
about
7.5
million
dollars,
so
the
same
relationship
holds.
If
you
go
down
to
6.5,
it's
basically
double
the
impact
of
going
to
6.625
percent.
N
However,
if
you
decrease
the
wage
inflation
that
that
actually
decreases
costs,
so
you'll
see
lower
lower
contributions
and
slightly
higher
funded
ratios,
if
you're
going
to
decrease
that
wage
inflation
and
that's
because
you're
decreasing
the
amount
of
salaries
that
are
projected
which
have
a
direct
tie
to
the
benefits
so
you're,
seeing
slightly
lower
benefit
accruals
and
with
that
we'll
turn
it
over
to
bill.
M
Yeah
so
before
we
get
into
a
discussion
about
the
alternatives,
I
I
wanted
to
talk
a
little
bit
about
our
philosophy
in
trying
to
set
the
the
contribution
levels
and
the
assumptions
and
then
look
at
a
potential
change
to
the
amortization
methods.
M
So
the
assumptions,
including
the
discount
rate,
set
our
funding
target
the
amount
of
assets
that
we
think
we
should
have
in
the
plan
at
this
point
in
time,
and
so
from
that
standpoint,
it's
very
important
to
use
our
best
estimate
of
expected
returns
in
order
to
target
the
right
amount
of
assets.
M
However,
typically
we
have
not
made
a
change
more
than
25
basis
points
in
a
year,
and
one
of
the
reasons
for
that
is
that
large
changes
in
the
discount
rate
have
an
effect.
Well,
any
change
in
the
discount
rate
also
affects
member
contributions,
in
addition
to
city
contributions
and
there's
no
method
to
smooth
the
impact
on
member
contributions,
and
so
a
large
change
in
the
discount
rate
can
have
an
immediate,
significant
impact
to
member
contributions,
and
we
have
not
wanted
to
make
an
increase
too
quick
on
the
member
side.
M
When
once
you've
set
the
assumptions-
and
we
have
that
funding
target,
then
the
amortization
methods
define
really
a
payment
plan
for
the
city
to
get
from
where
we
are
today
to
that
funding
target
to
100
funding,
and
we
want
that
method
to
be
affordable
for
the
city.
If
we
weren't
concerned
about
it
being
affordable
for
the
city,
we'd
ask
the
city
for
one
and
a
half
billion
dollars
right
now
to
completely
fill
the
the
ual.
M
So
we
do
have
to
have
some
consideration
for
the
affordability
we
like
to
have
a
stable
plan
so
that
for
budgeting
on
the
city
side,
it
doesn't
bounce
around
too
much.
We
don't
ask
for
a
lot
one
year
and
then
a
lot
less
the
next
and
and
keep
that
fairly
stable.
M
So
there's
some
balancing
that
goes
on
here
and
the
way
I
think
about
it
is
we're
we're
trying
to
find
this
path
between
underfunding,
the
pension
plan
and
setting
the
contributions
too
high
at
any
particular
point
in
time,
so
that
we
can
get
to
a
fully
funded
plan
and
I
think,
drew
had
used
the
metaphor
before
of
chemotherapy,
and
I
thought
that
was
very
good,
that
you
want
enough
medicine
to
cure
the
disease,
but
not
too
much
that
you
kill
the
patient,
and
so
we've
tried
to
steer
this
path,
and
our
bias
has
been,
if
you
use
this
road
metaphor
to
be
as
far
as
we
think
we
can
in
the
passing
lane
to
try
and
get
there
as
quickly
as
possible,
without
tipping
over
the
edge
to
be
too
high
of
a
contribution
for
the
city
to
afford
those
are
judgments.
M
M
So
with
that
in
mind,
last
year
we
took
a
look
at
the
individual
amortizations
for
the
tier
one,
unfunded
liability
and
just
for
the
benefit
of
the
new
trustees
and
a
reminder
for
the
current
trustees.
M
Each
of
these
little
blocks
represents
a
payment
on
an
amortization
base.
So
each
year
we
set
up
an
amortization
payment
for
that
year's
gains
and
losses
that
year's
assumption
changes
and
that
year's
benefit
changes,
and
these
are
the
remaining
payments
for
each
of
those
bases
and
the
light,
yellow
ones
are
gains
and
losses.
The
purple
ones
are
assumption
changes
and
there
are
a
few
green
ones
that
are
benefit
changes.
M
The
line
represents
the
payments
in
an
individual
year,
all
aggregated
together,
and
so
last
year
we
we
had
this
red
line
that
went
up
and
down
up
and
then
drop
significantly
and
then
bounce
back
up
and
and
so
in
trying
to
stabilize
the
future
outlook
for
payments.
We
adjusted
some
amortizations
and
changed
it
to
this
blue
line.
M
M
We
had
talked
about
potentially
changing
these
2005
amortizations
that
had
two
years
remaining
but
decided
we
didn't
need
to
last
year,
and
so
that
is
what
is
causing
this
year's
contribution
to
go
up
followed
by
going
down
is
we
are
paying
off
those
two
amortizations.
M
So
if
we
are
reducing
the
discount
rate,
because
we
think
that's
more
reasonable
but
we're
concerned
about
the
immediate
impact
on
the
city,
one
thing
simple
thing
we
could
do
is
extend
those
2005
amortizations
by
one
year
and
essentially
you'd
be
trading.
M
They
would
flip,
there's
an
additional
interest
charge
for
2023,
so
it's
a
little
bit
more
total,
but
that
could
be
viewed
as
something
that
might
help
manage
the
change
in
the
discount
rate.
M
So
with
that,
actually
I
I'd
like
to
switch
to
my
interactive
model,
so
hang
on
here,
I'll,
stop
sharing
and
I'll
re-share
with
the
interactive.
M
M
Okay,
so
hopefully
you
can
see
the
interactive
model,
and
this
is
with
the
current
assumptions,
but
with
the
wage,
inflation
and
price
inflation
and
amortization
payment
growth
adopted,
but
no
change
to
the
discount
rate
and
here
you're,
seeing
the
the
projection
of
the
liability,
the
assets,
funded
ratio
on
the
actuarial
asset
value
basis
and
the
the
contributions
is
a
dollar
amount
down
here,
and
so,
for
example,
you
can
look
if
we
change
this
to
6.625.
M
It
raises
these
contribution
amounts
from
216
to
223,
as
was
shown
on
the
slide
that
ann
showed
you,
but
in
2023
we
would
have
a
decline
down
to
17
million,
and
so
here
we
can
adjust
those
amortization
periods
actually
before
I
do
that,
let
me
show
you
so
here's
the
amortization
graph.
I
was
just
showing
I.
If
we
change
these
to
two
years.
M
The
initial
one
remains
approximately
the
same,
but
the
significant
change
it
is
in
the
second
year,
so
we
can
model
different
alternatives.
I
also
put
the
2007
fire
benefits
here.
If
we
wanted
to
model
that
you
could
potentially
add
one
year
to
that,
that
gets
you
the
contribution
back
to
216
exactly
so.
I
think
with
that.
M
I
would
open
for
questions
and
discussion
about
which
alternatives
make
the
most
sense.
B
Thank
you
bill
and
anne
for
the
presentation,
we'll
go
ahead
and
open
it
up
the
floor
to
trustees
and
and
staff
that
want
to
have
input,
go
ahead
and
just
raise
your
hand
calling
you.
J
D
Currently,
what
we
did
is
our
contract
expired
back
at
the
end
of
june,
but
we
signed
a
one-year.
D
J
K
Vince,
this
is
roberto.
Thank
you
for
your
questions.
So
a
couple
of
things
I
I
believe,
usually
sherry,
parkman,
join
us
in
the
zoom
meeting
and
trying
to
see
if
she
is
at
the
meeting
or
not.
K
But
to
your
point
I
we.
We
keep
the
city
a
prize
not
only
of
the
presentations
but
even
after
the
discussions
are
heard
by
the
board.
K
K
I
I
know
that
the
city
in
their
estimates
every
year
they
go
about
it
a
little
different
than
we
do,
and
I
actually
believe
that
the
a
five
to
seven
million
dollar
increase
in
contributions
is
about
around
the
amount
that
they
always
sort
of
are
looking.
The
contribution
is
going
to
increase,
but
you
know
I
can't
really
speak
for
the
city.
The
other
question
I
would
ask
for
is
a
trustee
is
and
again
we're,
not
a
city.
K
You
know
I
don't
have
the
same
information
is
whether
they
feel
that
the
2022
budget
is
going
to
be
more
challenging
than
the
2023
budget
right,
because
that
would
answer
the
question
that
the
the
bill
just
mentioned
on
whether
you
want
to
sort
of
shift
the
impact
of
those
contributions
by
changing
the
amortization
right.
So
I
don't
know
the
answer
to
that,
but
I
do
know
that
they
always
expect
an
increase.
K
J
M
J
Great,
thank
you
so
the
lower
slide
we
worked
hard
last
year
at
adjusting
amortization
to
take
what
was
a
pretty
large,
cliff
out
and
smooth
this
a
bit
in
terms
of
the
city
contributions,
but
I'm
still
kind
of
surprised
here
that
we
have
this
increasing
contribution
for
the
next
nine
years
or
so,
where
it
peaks
in
2029
and
then
starts
to
fall
off.
But
yet
the
upper
slide
is
showing
our
assumptions
that
it's
still,
this
sort
of
gradual
increase
to
being
more
fully
funded.
J
M
So
there
are
several
things
in
there:
the
the
increase
that
you're
seeing
is
reflecting
our
two
and
a
half
percent
payment
increase
each
year
on
the
amortization,
as
well
as
just
growth
in
payroll
being
applied
to
normal
cost,
so
we're
showing
the
dollar
impact.
Here.
I
can
switch
back
to
the
live
model
and
show
it
as
a
percent
of
pay,
where
it's
much
more
level
or
declining.
M
Going
forward
the
contribution
to
getting
to
full
funding,
we
are
looking
at
a
one
and
a
half
billion
dollar
unfunded
liability
and
so
we're
chipping
away
at
that
with
our
contributions,
and
so
it
takes
a
while
for
it
to
have
a
dramatic
impact.
I
think
let
me
see
here,
I
think
in
the
appendix
I
had.
J
M
Yeah
it
it's
fairly
and
part
of
that
is
you're
looking
at
it
as
a
funded
percentage
instead
of
looking
at
the
ual
dollar
amounts,
but
also
we're
looking
at
contributing
60
million
towards
that
unfunded
liability
in
the
first
year
of
1.5
billion,
and
so
it
does
take
a
while
for
it
to
come
down.
Let
me.
M
M
A
little
at
a
time,
but
we're
continually
increasing
the
amount
of
that
principal
payment
as
we
chip
away
and
and
so
then
it
starts
to
accelerate
how
quickly
we
close
that
gap.
J
A
A
Emails
and
I'm
gonna
be
kind
of
hard
on
bill
and
nan,
and
it's
not
because
I
don't
have
enormous
respect
for
bill
and
anne
or
I
don't
personally
like
bill
and
and
it's
quite
the
opposite
and
going
to
be
hard
on
bill
and
am
because
I
have
an
enormous
amount
of
respect
for
them,
because
they're,
really
valued
partners
and
we're
going
to
try
to
take.
I
at
least
as
the
chairman
of
the
board.
A
If
you
feel
like
I'm
whipping
you
it's
just
because
I
don't
want
to
die
on
the
way
to
the
top,
so
three
points,
so
it's
always
kind
of
good
just
and
you
guys
guys
have
been
on
board
now.
I'm
kind
of
goofy
new
trustees,
I'm
a
little
goofy,
bear
with
me.
While
I
be
a
little
goopy,
it's
always
good
to
kind
of
stand
back
and
ask
yourself
where
you
are
in
space
and
time
right.
What
business
are
we
in
we're
in
a
fairly
straightforward
business?
A
It's
easy
to
describe
it's
hard
to
implement
because
a
lot
of
bodies
a
lot
of
money,
a
lot
of
time,
but
basically
pension
systems
used
to
be
pay
as
you
go
and
and
the
powers
that
be
wisely
decided.
Well,
that
doesn't
quite
work.
Look
if
we're
going
to
owe
a
lot
of
money
in
the
future.
We
ought
to
be
saving
money
over
to
over
time
to
pay
that
money
in
the
future.
A
Now
every
city
is
different,
every
police
department
is
different,
every
fire
department
is
different
and
every
city
is
different,
and
so
every
pension
plan
is
necessarily
different,
but
but
they
basically
have
the
same
goals.
They
have
some
pool
set
aside,
not
pay-as-you-go
anymore.
That's
our
assets
and
some
predictive
future
of
the
payments.
We
have
to
make.
What
what
you've
just
seen
bill,
give
us
in
great
and
we'll
explain,
detail
got
it.
That's
the
first
thing
now.
A
The
second
thing
is,
you
can
look
at
pension
plans
all
across
the
world,
certainly
all
across
the
state
and
across
the
nation,
and
they
are
not
all
100,
fully
funded
all
right.
That
kind
of
makes
sense.
We
said
the
business
was
to
invest
these
assets
and
predict
this
uncertain
future
of
liabilities
and
of
course
the
future
is
unknown
right.
A
So
from
startup
companies
from
my
businesses
of
vc
we're
in
the
same
business
right
we're
startup
companies
we're
trying
to
get
a
product
that
hasn't
been
developed
yet
to
a
market
that
may
not
have
seen
the
product
before
with
people
that
haven't
worked
together
before,
and
so
we
have
a
system.
I've
described
it
once
before,
and
I'd
like
to
introduce
this
to
the
board,
as
we
go
on
this
journey
forward
to
ask
why
what
we
thought
would
happen,
what
we
planned
to
have
happen.
What
we
tried
to
happen
didn't
happen.
A
There
are
three
axes
to
this.
The
first
one
is
luck
or
skill.
Well,
okay,
luck
is
our
factory
burned
down
in
a
tornado?
Well,
I
couldn't
see
that
skill
is
the
engineer,
didn't
design
the
product
right
and
and,
and
it
wasn't
unlucky-
just
didn't
bring
an
engineer.
That's
the
first
axis
right.
The
second
access
access
is
exogenous
or
endogenous,
and
all
that
means
is
was
it
really
under
our
control
or
not?
A
So
the
fact
that
the
tornado
caused
the
factory
to
burn
down
is
exogenous,
but
the
fact
that
we
might
have
not
had
our
sprinkler
system
checked
and
it
didn't
work
and
that's
on
us,
that's
endogenous
and
the
third
axis
is
a
little
tricky
to
describe.
It's
called
the
generic
or
specific
axis,
and
what
that
means
is.
Was
it
something
that
happens
all
the
time
and
therefore
could
have
been
predicted?
A
Hey.
You
wouldn't
expect
a
tornado
in
sacramento,
but
you
bloody
well
would
in
kansas
city
right
or
or
or
is
it
something
very
specifically
doesn't
often
happen.
It's
pretty
hard
to
predict
that
people
are
going
to
fly
airplanes
into
buildings
on
september
in
september
of
2001,
all
right
third
thing
now
getting
down
to
brass
tax.
A
So
we
we
know
two
things
in
life.
I
mean
it
comes
from
raising
kids
or
driving
our
car
whatever.
We
know
that,
there's
a
difference
between
absolute
and
relative,
and
we
we
learned
all
that
in
school
right
right.
If,
if
I
graded
everyone
on
this
test,
absolute,
you
idiots,
don't
know
biology,
you're
all
getting
an
f.
A
But
if
I
grade
this
on
a
relative
curve,
hey
some
of
you
learned
more
did
better
than
others.
Some
of
you
are
going
to
get
an
a,
and
that
applies
to
everything
in
life,
whether
we're
dealing
with
kids
or
friends
or
starting
companies,
and
the
second
thing
that's
generic
from
life,
is
you
always
have
the
option
to
raise
the
bridge
or
lower
the
level
of
the
water?
And,
of
course,
that's
the
metaphor
that
bill
has
used
consistently
for
assets
and
liabilities
right
now
stay
with
me,
I'm
going
to
try
to
tie
all
this
together.
A
What
we've
done
so
far
on
this
board
over
the
last
decade
has
been
pretty
easy
because
we've
been
operating
in
relative
land
so
far.
Now,
relatively
speaking,
it
was
pretty
clear
that
our
discount
rate
was
too
high.
Now
a
large
part
of
that
was
because
of
the
unexpected
low
rate
of
inflation,
and
you
heard
that
earlier
in
this
meeting,
and
so
it
was
relatively
straightforward
for
this
board
to
say:
look
I
don't
know
the
absolute
position.
The
discount
rate
should
be.
A
I
don't
know
if
absolutely
it
should
be
6.25
or
6.5
or
6.75,
but
I
know
relatively
it
shouldn't
be
eight,
and
so
it's
very
easy
to
dial
it
down
and
it's
bill.
So
astutely
pointed
out
that
knob,
if
you
spin
that
knob
from
eight
to
six
and
one
go
everything
blows
up,
and
so
we
decided
early
on
that
we
would
spin
it
in
increments
of
a
quarter
of
a
percent,
maybe
an
eighth
of
a
percent.
A
So
relatively
it's
been
easy
to
know
what
direction
we
go
in.
The
problem
is-
and
this
was
highlighted
for
those
of
you
at
the
off
site
that
vince
hosts
a
couple
of
years
ago.
We're
now
approaching
the
point
where
relative
we're
getting
into
absolute
territory
and
so
for
the
assets
we
decided.
Look
relatively,
we
know
to
go
down
now.
We
need
to
figure
out
absolutely
vince,
I
think
very
astutely,
said:
look.
We
can
figure
out
what
the
right
risk
for
san
jose
is,
and
we
figure
out
the
right
risk
level.
A
We
can
build
a
portfolio
to
match
that
and
that's
absolute
that's
the
right
risk
level,
every
pound's,
different
everybody's
level
for
san
jose,
got
it
all
right.
So
we've
now
got
that
number.
We
can
build
a
portfolio.
We
can
ask
what
the
expected
return
of
that
portfolio
is,
and
that
should
probably
be
the
return
we
expect
on
our
assets,
the
discount
rate
on
assets.
A
A
So
in
absolute
terms,
and
and
this
is
a
decision
like
today,
our
discount
rate,
our
expected
return,
which
decided
the
same
thing
on
assets-
is
somewhere
in
the
sixes
high
sixes,
mid
sixes
low
sixes
somewhere
in
the
sixes.
Now
here's
the
problem
and
here's
the
the
summiting
of
everest
that
I
think
this
board
needs
to
do.
I
kept
saying
the
discount
rate
for
assets.
A
I
don't
think
we
know
what
the
discount
rate
for
liabilities
is
supposed
to
be
and
when
you,
google,
discount
rate
for
liabilities
you
get
about
a
hundred
brilliant
scholarly
works.
You
get
a
million
hits,
so
we
have
historically
said
well
we'll
use
the
same
discount
rate
for
assets.
As
for
liabilities,
bill's
been
saying
for
three
or
four
years.
You
don't
have
to
do
that
and
it
might
not
be
right,
which
is
part
of
the
reason
bill.
A
You're
gonna
end
up
being
the
sherpa,
because
you
kind
of
volunteered
for
the
suicide
mission
early
on
when
you
pointed
that
out.
A
I
think
that
we
should
probably
set
the
discount
rate
based
on
what
we
think
we're
going
to
return
on
assets
and,
in
the
back
of
our
mind,
say
you
know
what
the
actual
combined
discount
rate
for
assets
and
liabilities
is
almost
certainly
lower.
All
right,
I
will.
I
will
wrap
this
long
diatribe
up
with
the
following
notion.
So
how
do
we
figure
out
what
level
we
should
set
a
discount
rate
for
liabilities
to
now?
A
A
I
think
there
are
three
steps
to
that
process,
and
this
is
the
sherpa
at
the
summit
of
everest.
First,
I'm
proposing
and
and
the
board
can
say
no.
We
should
look
at
historically
what
happened
with
assets
and
liabilities,
specifically
with
assets.
What
are
the
physics
of
our
liabilities?
What
have
they
been
over
the
last
25
years?
What
can
we
learn
from
the
past?
That's
pretty
easy
right.
That's
I'm
learning!
How
to
drive
a
car
by
driving
a
car?
What
happened
right,
I
stepped
on
the
gas
the
car
went
then.
A
The
second
thing
I
think
we
should
do
is
is
is
apply
that
that
error.
Finding
thing
I
talked
about
well,
if
we've
under
forecast
or
over
forecast
liabilities
historically,
was
it
luck
or
skill?
Was
it
under
our
control
or
not?
Was
it
generic
or
specific?
And
then
the
third
step
is
just
as
we've
done
for
assets
right.
We
should
come
up
with
a
way
not
relatively
to
set
the
liability
discount
rate,
but
absolutely
and
at
the
end
of
this,
at
the
end
of
the
next
year
or
two.
A
A
Final
final
final
thought:
when
you
read
those
hundred
scholarly
papers
pretty
much
to
a
person,
they
all
say,
the
discount
rate
for
liabilities
should
be
lower
than
the
discount
rate
for
assets,
and
that
observation
pretty
much
universally
made,
I
think,
is
what
should
take
us
on
this
next
part
of
the
journey.
Sorry,
you
guys
have
been
very
patient
to
listen
to
me,
but
I
am
your
incoming
chairman
and
I
got
a.
I
got
a
little
bone
to
pick
up
our
whole
system
bill.
Tell
me
why
I'm
crazy.
M
Well,
I
think
we're
going
to
need
to
dive
into
a
bunch
of
those
pieces
probably
would
be
good
to
do
an
educational
session,
because
the
the
discount
rate
for
liabilities
really
depends
on
the
purpose
of
your
measurement.
M
M
We
are
trying
to
set
a
discount
rate
for
funding,
which
ties
us
much
more
to
the
expected
return
on
assets,
but
there's
a
lot
of
volatility
in
that
expected
return
on
assets
from
year
to
year.
In
the
point
of
our
slide
about
interest
rates
declining
and
how
that
affects
the
capital
market
assumptions
is
that
that
has
completely
changed,
expected
returns
on
portfolios,
which
has
caused
us
in
all
pension
plans
to
increase
the
risks
in
their
portfolio
and
to
reduce
their
expected
returns.
A
M
Yeah
we're
we're
looking
forward
to
some
stimulating
discussions.
A
Yeah,
I
love
your
idea
too
bill.
Let's
start
with
some
educations,
this
discussion
start
at
a
high
level
and
start
to
dig
down
to
what
are
the
real
fundamental
questions.
So
I'm
a
smart
enough
guy
built
to
know
what
I
don't
know
and
I
really
don't
know
much
and
I'm
guessing
you
know
a
lot.
So
I'm
looking
forward
to
I'm
sucking
your
brains
out
through
a
straw
over
time.
Sorry,
for
the
gross
metaphor,
that's
all
I've
got
andrew
thanks.
B
All
right
thanks,
drew
thanks
bill.
You
know,
I
there's
a
couple
things
I
want
to
do.
Real
quick
is,
I
do
want
to
reach
out
get
prabhu's
comments.
Drew
made
a
few
comments
about
tying
discount
rate
to
asset
returns.
B
I
was
curious
to
get
some
feedback
from
prabhu
on
that
also
want
to
reach
out
to
council
member
foley
to
see
if
she
has
any
comments
that
she
wants
to
make
in
regards
to
the
discussion
from
a
city
perspective,
and
then,
after
that
I
hope,
if,
if
roberto
wants
to
make
any
comments
or
anybody
else,
then
I
would
like
to
jump
in
to
really
dive
into
and
start
making
decisions
and
looking
at
okay,
you
know,
basically
our
discount
rate.
Do
we
want
to
drop
it
an
eighth
to
a
quarter?
B
G
Sure,
thank
you
thanks
andrew.
So
it's
hard
to
follow,
drew
and
sound
halfway
intelligent,
but
I
will
try.
Look,
there's,
there's
two
things:
right:
there's
discounting
liabilities
and
there's
discounting
assets
and
I'm
going
to
not
talk
about
discounting
liabilities.
G
It's
above
my
pay
grade
and
you
all
are
far
smarter
and
more
experienced
in
doing
that
discounting
assets.
I
happen
to
know
a
thing
or
two
about
that.
So
I'll
make
my
comments,
I'm
largely
agreeing
with
drew
just
putting
some
color
on
on
what
he
said
and
it's
it's
similar
to
what
how
I
think
about
assets.
G
Firstly,
thinking
about
an
expected
rate
of
return
for
assets
is,
is
not
the
right
way
to
go
about
it,
because
the
right
way
to
think
about
it-
and
I
think
drew
did
mention
this-
is
to
think
about
our
risk-taking
ability
and
that's
the
piece
I
think
was
missing
for
a
long
time
at
san
jose
and
we
engaged
varys
and
varus
came
and
said
and
spoke
to
various
stakeholders
in
fact
drew
drew
asked
the
mayor
this
question:
what
is
your
risk-taking
ability
recently
at
the
joint
meeting
and
and
academic
finance
will
show
that
you
can
never
predict
returns,
but
risks
are
reasonably
stable.
G
So
if
you
take
past
returns,
it's
it's
hard
to
come
up
with
future
returns.
But
if
you
take
past
risks,
you
can
come
up
with
future
risks
in
a
reasonable
manner.
Risk
models
happen
to
be
reasonably
stable,
which
is
why,
when
we
run
our
optimization
process
for
strategic
asset
allocation,
we
really
start
with
risk.
G
So
the
real
question
we
should
ask
every
time
we
do.
This
exercise
is
what
is
our
risk,
taking
ability
and
I'm
just
going
to
introduce
the
word
sigma
here.
Sigma
stands
for
standard
deviation
and,
whereas
came
came,
did
a
study
and
said:
look:
your
sigma
is
12,
so
we
always
start
with
our
sigma
and
say
our
sigma
is
12.
G
Now
that
we
know
our
sigma.
What
is
how
how
best
can
we
what's
the
maximum
return
that
we
can
achieve
given
the
sigma
of
12,
and
then
we
look
at
our
pool
of
ass,
our
our
investment
opportunity
set.
So
you
have
public
equity,
your
private
equity,
you
have
commodities,
you
have
real
estate
and
so
on,
and
so
we
take
all
those
assets
and
we
come
up
with
reasonable
assumptions
about
what
they
will
return
in
future
right.
G
So
we
take
that
combination,
and
you
know
this
is
we
we've
spoken
about
this
in
the
past?
We
we
look
at
this
efficient
frontier.
The
risk
return
trade-off.
We
know
our
risk
number,
that's
the
most
important
number.
We
know
our
sigma,
that's
12.
We
start
from
that
12
percent
and
say
here's
the
opportunity
set
here
are
all
the
assets
that
we
can
invest
in.
What
combination
of
those
will
maximize
return
given
that
12?
G
So
we
always
start
with
the
sigma.
That's
the
only
thing
that
we
know.
We
don't
know
anything
else,
and
then
we
look
at
these
expected
returns
and
we
say
we
maximize
on
that
efficient
frontier.
We
pick
a
portfolio
that
corresponds
to
the
12
return
which
may
yield
you
know
as
drew
said
somewhere
between.
You
know
six
and
seven
percent.
We
don't
know
what
that
number
is,
and
you
know
at
various
times
that
number
for
a
12
return
could
be.
G
G
We
are
clearly
in
a
declining
return,
expectation,
environment,
and
so
that's
why
we've
been
sort
of
dropping
that,
so
my
two
cents
really
is
to
largely
agree
with,
what's
been
said,
but
to
really
say
you
know,
when
we
start
thinking
about
it
expected
rate
of
return
for
assets,
that's
not
the
right
way
to
start.
We
should
really
look
at
what
is
our
sigma.
We
should
keep
looking
and
challenging
ourselves.
B
G
G
B
Thank
you,
sunita
es
warren
howard.
I
see
your
hands
up,
I'm
going
to
come,
come
to
you
in
a
sec.
I
want
to
jump
to
council
member
foley.
I
know
she
I
believe
she
has
to
leave
shortly
and
I
want
to
get
her
feedback
if
she
see
if
she
has
any
comments
that
she
wants
to
contribute
to
this
discussion.
O
Thank
you
chair.
I
I
really
appreciate
the
discussion
and
the
thought
that's
going
into
some
of
the
changes
and
modifications
you
might
make
over
this.
One
of
the
questions
raised
was
what
is
the
city
estimating
as
contributions
in
2022
and
2023?
O
The
the
budget
situation
for
2022
is,
as
you
might
imagine,
we
are
projecting,
will
not
be
better
and
improving
it's
going
to
get
worse
as
we
go
through
covet
and
survive
and
figure
out
what
that's
going
to
do
as
far
as
our
tax
base
and
our
lack
of
income
for
our
conventions
and
sales
tax
and
other
revenues
that
we're
not
generating
now,
and
we
don't
project
that
2023
is
really
going
to
be
any
better.
So
I
I
caution
you
as
the
city
council,
member
representative.
O
I
caution
you
to
seriously
look
at
not
increasing
the
unfunded
liability
allocation
that
the
city
will
have
to
be
making
in
2022
and
2023
it
already.
As
you
all
know,
it
will
affect
our
general
fund
and
our
general
fund
will
affect
our
ability
to
hire
police
and
fire
in
the
areas
that
that
are
most
critical
for
the
city
and
other
other
resources
that
we
need
to
retain.
So
I
plea
I
do
what
you
can
to
toe
the
line
or
lower
lower.
O
The
contribution
would
be
great,
maybe
extending
the
amortization
schedule,
if
that's
a
possibility
as
a
a
lender.
I
look
at
extending
mortgage
amortization
as
a
way
to
balance
out
monthly
payments,
and
that
might
be
a
solution,
but
I
know
the
trustees
are
very
thoughtful
and
I
appreciate
the
discussion
around
this
issue
and
I
look
forward
to
to
the
outcome,
but
I
would
hope
that
you
would
look
to
maintaining
or
decreasing
if
that's
a
possibility.
O
But
we
are
moving
forward
with
the
certification
process
and
we'll
have
a
study
session
on
that
in
april,
with
the
possibility
of
moving
forward.
So
that
is
one
way
we
are
looking
at
it
addressing
the
unfunded
liability
and
the
pension,
the
contributions
that
we
need
to
make.
But
I
have
some
concerns
there
and
and
if
possible,
I'd
love
to
hear
your
thoughts
about
that,
maybe
not
today,
but
maybe
at
our
next
meeting.
If
we
have,
if
we
have
time.
B
Thank
you,
council,
member
foley,
for
those
for
those
comments
go
ahead
and
move
on
to
eswar.
D
Yeah,
thank
you
andrew
yeah.
I
think
drew's
point
about
using
a
different
discount
rate
for
liabilities
versus
assets.
I
think
it's
interesting.
I
think
if
you
read
the
literature,
I
think
it's
a
mixed
bag
in
terms
of
what
people
recommend,
and
so
I
think
it's
something
you
know.
I
think
it's
a
learning
process
for
us
to
go
through
and
I
think
to.
I
think
it's
good
that
the
council
is
moving
forward
in
terms
of
the
pension.
You
know
liability,
bonds,
obligation,
bonds.
D
D
Yeah,
thank
you
thank
you.
Thank
you
drew
and
prabhu
and
everyone
for
their
comments
and
bills
and
for
the
presentation
I
I
just
have
two
questions,
and
maybe
because
I
I'm
relatively
new
to
this,
but
I
have
a
sense.
I
know
the
answer
is
question.
D
Given
how
how
much
of
a
lever
different
loops
are
they
only
get
adjusted
annually?
I
assume
right
just
because
of
nature.
This
actuarial
evaluation
there's
no
way
to
make
a
change
today
to
compensate
for
that
june
or
july
or
anything.
Is
that
correct,
which
is
once
a
year.
M
Yeah,
so
we
change
we
review
it
each
year
when
we
do
the
valuation
and
then
that
valuation
sets
the
contributions
that
start
a
year
later
than
the
valuation,
and
so
it's
because
of
that
budgeting
process.
You
really
can't
change
things
more
quickly
than
than
once
a
year,
because
we
lock
in
the
city
and
member
contribution
rates
for
the
fiscal
year.
D
Okay,
all
right
and
and
and
just
following
what
I
think
prabhu
and
drew
were
talking
about-
I
I
know
you
know
it's
a
academic
effort
in
some
ways
to
deal
with
different
rates
of
liabilities
but
bill.
You
had
mentioned
something
about
a
proxy
proxy
set
up
where
you
could
use
some
sort
of
bond
funds
to
sort
of
have
a
indication
of
what
some
sort
of
discount
rate
for
liability
would
be.
That
is
that
some
sort
of
methodology
that
you
can
incorporate
with
you
know
a
little
bit
of
effort
going
forward.
D
M
Well,
that
gets
fairly
complex.
We
have
talked
about
it
and
I
think
the
board
was
tracking
a
liability
benchmark
return
for
a
while,
I'm
not
sure
where
that
stands
now,
but
you
can
approximate
it
by
just
using
the
returns
on
a
long
duration
bond
fund
and
what
we
did
was
determine
sort
of
approximate
durations
for
the
pension
liabilities,
and
you
could
look
at
the
return
on
a
bond
fund
that
had
the
same
duration
to
get
an
idea
of
of
the
return
side.
M
But
those
numbers
move
around
much
more
rapidly
than
what
we
want
to
apply
in
funding
the
plan,
because
that
creates
a
lot
of
variation
in
city
and
member
contributions.
So
so
we
need
to
stabilize
that
in
some
way.
A
I
I
would
add,
if
I
can't
bill
howard,
this
is
part
of
that
historical
exercise,
at
least
in
theory.
I
realized
we
need
to
be
able
to
pull
this
off
practice.
It
should
be
possible.
Maybe
it
isn't
to
go
back
to
say
the
year,
1998
and
paw
through
the
actuarial
stuff
and
say
here's
kind
of
what
we
forecast.
We
were
going
to
blow
out
the
door
in
2020
and
then,
if
that's
possible
in
1998,
just
say
what
we
forecast
for
2020
and
then
look
at
what
we
actually
did
in
2020.
A
Now
that
doesn't
deal
what
bill's
talking
about,
which
is
the
right,
proper
and
prudent
way
to
do
it,
but
it
would,
I
think,
if
we
can
do
that
bill
again,
just
just
exploration
highlight
where,
if
any,
there
are
systemic
biases
in
the
liabilities
I
mean
we
knew
we
know
now
in
in
history,
there
was
a
systemic
bias
in
the
assets
due
to
our
overvaluing
inflation.
Now
we
based
it
on
historic
numbers
and
we've
never
been
in
a
period.
A
I
certainly
not
my
life
and
I
don't
think
in
the
20th
century,
where
inflation
was
deliberately
kept
this
low
and-
and
so
I
I
would
say
there
is
god-
knows
the
actual
answer
of
what
the
liabilities
year
to
year
and
forecast
to
forecast
should
have
been
discounted
at,
and
I
think
the
question
is:
are
we
going
to
be
smart
enough
to
get
at
that
and
then
tease
it
apart
to
look
at
where,
again,
I
said
the
three
actives
of
error,
so
look
at
where
the
errors
came
from
sorry
bill
did
one
jump
on
your
feet.
A
J
We
adopt
bill's
recommendation
of
adjusting
the
amortization
that
was
in
the
2000
and
five
year
to
a
one
year.
Time
frame
is
that
correct
bill?
Am
I
stating
that
increasing.
J
It
does
increase
the
expected
contribution
in
2023
because
we
are
flopping
these
numbers,
but
we
can
look
at
it
next
year.
We
can
revisit
it
based
upon
how
the
plan
performs
that
may
not
end
up
being
an
accurate
contribution
for
2023,
but
this
would
be
a
good
solution
for
this
year
and
it
allows
us
to
modestly
lower
our
discount
rate.
So
that's
my
motion.
B
So
we
got
a
motion
by
vince.
Do
I
have
a
second.
B
Okay,
lonzo,
a
second
that
is
there
any
discussion
that
we
want
to
have.
Any
trustees
want
to
have
any
further
discussions
on
this.
B
Seen
sunita,
can
I
come
to
you
right
in
one?
Second,
I
want
to
go
to
dick
real,
quick,
dick.
E
E
D
Yeah,
it's
it's
going
to
bring
it
up
a
little
bit,
not
so
much
for
tier
one,
but
more
so
tier
two,
because
they're
sharing
the
expense
50
50.
M
So
it
would
increase
the
member
rates
about
30
basis
points
for
tier
one
and
50
basis.
Points
for
tier
two.
K
J
M
The
amortization
change
we're
talking
about
is
only
on
pieces.
The
city
pays,
but
the
discount
rate
change
would
affect
the
member
rates,
and
so
this
they
would
have
been
about
11
on
average
and
increasing
to
11.3
and
going
from
14
to
14.5
on
tier
two.
K
So
that
so
that
I'm
clear
and
and
saw
the
trustees
and
the
motion
and
and
the
public
in
general,
the
the
motion
is
just
you're,
reflecting
the
numbers
of
the
motion.
In
other
words,
the
ultimate
wage
inflation
will
remain
at
three
percent,
will
not
go
to
2.75,
so
is
the.
If
you
may
is
the
the
quadrant
in
the
middle,
in
the
top
middle
part.
Is
that
correct.
J
K
Of
the
further
change
adjustment
sort
of
flopping,
the
two
years
that
you
mentioned,
of
their
motivation,
right,
2022
and
23.,.
D
K
Okay,
understood
and
mr
chair,
I
don't
know
if
that
any
other
comments
from
trustees
or
questions.
K
If
I
may,
I
like
to
comment
just
a
couple
of
things.
First
of
all,
as
always,
I
just
want
to
applaud
the
board
for
having
a
very
robust
discussion.
I
think,
at
the
end
of
the
day,
council
will
tell
you
that's
really
the
key,
so
I
I'm
not
as
bright
as
everyone
that
has
spoken
in
terms
of
the
discovery
for
the
liability
on
the
investments
commons
by
prabhu.
K
What
I
can
tell
you
is
that
it
has
been
a
very
robust
discussion,
many
questions,
considerations
from
from
different
comments
from
trustees,
and
you
know
one
thing
that
I
have
learned
from
from
bill
and
really
the
actuarial
consultants
over
my
experience
at
public
plants.
Is
that
the
actual
process,
I
think
they
will
call
it
is
self-adjusting,
which
means
you
know.
K
I
think,
at
the
end
of
the
day,
council,
anna
and
kyron
will
tell
you.
K
The
goal
here
is
to
be
reasonable,
which
I
think
that
without
a
doubt,
we
can
say
that
your
boy
is
being
reasonable
on
the
assumptions
and
second,
of
course,
I
think
the
right
questions
were
asked
about
the
implications
to
the
membership
and
the
plan
sponsor.
K
So
those
questions
were
also
raised.
As
the
city
council
mentioned,
I
did
reach
out
to
the
city
budget
director,
but
I
haven't
heard
back
from
him,
but
I'm
aware
that
every
year,
when
they
do
work
on
the
estimates,
they
always
assume
if
some
dollars
increase
for
the
contribution.
So
I
also
want
to
mention-
and
I
think
you
know
again-
the
motion
is
six
and
five.
K
Eight,
your
sibling
plan,
the
federated
had
this
discussion
at
the
meeting
in
november,
and
they
did
also
agree
to
a
discount
rate
of
six
and
five
eights
for
the
plan
as
well.
So
that's
always
helpful.
It's
not
really
set
in
stone.
The
two
plants
do
not
have
to
me
to
move
together,
but
and
even
though
the
locations
are
somewhat
similar,
not
exactly
the
same,
you
know
it
sort
of
also
makes
sense
that
they
are
both
in
about
the
same
area
but
again
long
haul.
K
These
are
just
reasonable
estimates
and
so
again
I'm
thankful
for
the
discussion
and
I
think,
you're
doing
the
right
thing.
So
those
are
my
comments.
E
I
would
just
ask
it
for
clarification
from
my
memory
about
what
we
did.
Last
time
I
think
vincent
drew
was
on
the
right
thing.
I
think
the
key
to
it
is
vince
said
we
revisit
it
a
year
and
see
how
things
are
moving.
We
all
want
the
economy
to
be
better
we're
changing
people
at
the
white
house,
there's
all
kinds
of
things
and
challenges
going
to
be
for
2021..
E
I
understand
it,
I'm
just
trying
to
get
clarification,
so
I
appreciate
it.
I
think
everybody
is
trying
to
make
sure
that
the
city's
deficit
doesn't
get
any
longer
we're
all
blessed
with
retirement.
We
want
to
make
sure
everybody
has
the
funding
for
the
future,
so
those
are
just
concerns,
but
thank
you.
B
B
D
B
Just
to
make
one
comment
about
what
your
question
in
regards
to
the
members
percentage
going
up,
we
haven't
we've
been
at
6.75,
I
think
for
two
three
years
now
and
that
that
has
the
biggest
impact
on
members
rate
that
they're
gonna
be
paying,
and
so
it's
been
fairly
set
steady,
but
it
has
drifted
up
just
very
slightly,
so
you
know
it's
at
this
time:
yeah
it
will
go
up
a
little
bit
more
than
than
past
years,
but
I
I
do
agree
with
with
the
motion:
do
you
want
to
go
sunita?
M
So
in
this
chart
this
11
for
the
member
rate
and
14
for
the
member
rate
that
reflects
the
change
in
the
wage
inflation,
and
so
if
we
actually
looked
at
what
the
current
member
rates
are,
tier
1
averages
11.2
and
tier
2
averages
14.5.
M
So
the
wage
inflation
change
is
bringing
those
average
member
rates
down.
The
discount
rate
is
pushing
them
up.
B
Thank
you
for
the
yeah
thanks
for
the
clarification
and
then
also
these
are
blended
rates
correct.
So
you
know
police
is
going
to
look
different
than
fire
when
we
see
that
in
january
those
numbers.
M
B
So,
okay,
sunita,
sorry
for
thank
you
for
the
patience.
C
No
worries
I
just
want
to
put
myself
in
queue,
so
thank
you
for
doing
that.
Yeah.
I
guess
the
part
that
I'm
and
you
know,
directionally,
I'm
completely
on
board
with
the
proposal
that
we
should
lower
the
discount
rate,
whether
you
know
whether
it's
the
current
proposal
or
something
even
lower
and
also
the
wage
inflation.
But
the
part
that
I'm
I
feel
like
I'm,
I
don't
fully
understand-
is
also
to
address
council
councilwoman.
Foley's
question
is
the
amortization
piece.
You
move
that
down
exactly
the
same
as
the
inflation
like
25
basis
points.
C
M
M
Yeah,
so
if
you,
if
you
see
how
these
payments
are
increasing-
and
let
me
maybe,
if
I
put
it
over
here,.
C
M
So
that
the
real
thing
that
like
the
bond
rating
agencies
look
at,
is
how
fast
that
is
expected
to
grow
compared
to
how
fast
they
expect
city
revenues
to
grow,
and
so
traditionally,
we've
tied
that
to
payroll
growth.
M
But
I
know
s
p,
for
example,
looks
as
if
at
inflation
as
their
guideline,
and
so
it's
really
just
to
be
slightly
more
conservative,
because
we
don't
want
those
payments
as
we've
scheduled
them
to
become
a
larger
and
larger
burden
on
the
city
budget.
We
want
to
keep
them
about
the
same,
and
so
you
know
we
had
just
tied
it
to
inflation
and
so
looking
to
to
reduce
it.
M
When
we're
reducing
the
inflation
assumption,
you
could
still
keep
it
at
two
and
a
half,
and
that
would
still
be
a
reasonable
assumption
and
that
that
gets
you
a
little
bit
in
the
first.
M
C
Yes,
that's
the
only
thing
I
might
consider
if
you're
trying
to
optimize
not
not
burdening
the
city
too
much
in
the
short
term,
but
being
you
know,
conscious
of
the
fact
that
the
discount
rate
direction
you
know
the
market
environment
or
the
interest
rate
environment
is
pulling
us
down
and
wage
inflation
you
know,
seems
logical.
So
I
don't
know,
that's
that's
the
only
consideration
I
might
have
for
vincent's
proposal.
B
So
just
to
carry
on,
would
you
be
in
support
of
vince's
proposal,
or
are
you
asking
for
an
amendment.
C
B
Yeah
I
mean,
since
this
is
a
min
for
me,
since
it's
a
minimal
change
and
I
don't
think
it'll
have
too
much
of
a
material
impact
on
the
city.
You
know
I'm
okay,
with
keeping
it
as
you
know,
current
practice,
but
you
know
I
would
definitely
want
to
revisit
it
next
year.
If
we
find
out
that
you
know
the
city,
revenue
has
not
recovered,
it's
a
city
revenue
doesn't
recover.
That
probably
means
that
there
was
issues
with
the
vaccines
and
covet
is
still
rampant
and
the
economy
is
shutting
down.
B
Hopefully
we're
not
in
that
boat
a
year
from
now,
but
it
is
it's
just
you
know,
as
other
trustees
say,
it's
just
another
tool
and
toolbox
that
we
can
use
to.
You
know,
change
the
numbers
so
since
it
doesn't
have
a
minimal
impact,
I
wouldn't
I'd
prefer
to
keep
it.
You
know,
as
as
the
motion
carries,
but
if
you're
strongly
in
favor
of
changing
it,
then
let's
have
more
further
discussion
on
it.
B
Thanks
anita,
so
I
don't
believe
there
was
any
other
trustees
that
had
any
comments.
So,
if
that's
not
the
case,
is
there
any
public
comments.
B
All
right,
if
there's
no
public
comment,
we'll
go
ahead
and
do
a
roll
call
vote
on
on
vince's
proposal,
which
was
second
by
drew,
drew
lonzo.
Yes,
sunita.
J
D
B
Hi
dick
santos.
E
B
Vince
and
zerry
hi,
frank,
ovato,
hi
and
myself
gardener.
I
alright
motion
passes
bill,
you
got
and-
and
you
guys
have
everything
that
you
need.
M
We
do
we'll
be
back
in
january
with
the
final
valuation
results.
B
All
right!
Well,
I
appreciate
all
the
hard
work
bill
and
thank
you
for
putting
up
with
drew
for
our
second
meeting
in
a
row
and
have
a
happy
holiday.
K
K
M
The
difference
is,
we
can
follow
up
with
the
numbers
that
you
can
forward
to
the
city.
B
All
right
thank.
D
B
So,
let's
go
ahead
and
move
on
to
new
business,
roberto
oral
update
from
ceo,
roberto,
pena.
K
Thank
you,
mr
chair.
If
you
bear
with
me
for
a
second
first,
I
want
to
congratulate
and
welcome
back
vincenzari
for
another
four
years.
K
You
can
take
that
any
way
you
want
to,
but
he
was
interviewed
with
the
city
council
on
tuesday
and
he
was
reappointed.
You
can
see
his
smile
he's
just
ecstatic
and
excited
to
be
back
and
kirinasa
vince.
It's
been
a
pleasure
working
with
you
and
on
behalf
of
the
rest
of
your
colleagues
and
really
the
stakeholders
and
the
members
of
the
plan.
K
We
thank
you
for
your
commitment,
your
efforts
and
your
willingness
to
to
to
spend
hopefully
another
four
years
working
with
the
board.
So
thank
you
very
much
and
and
welcome
back.
K
So
I
also
wanted
to
kind
of
give
you
an
update
on
the
the
other
seat
that
was
supposed
to
be
addressed.
Was
the
police
retire
seat
and
the
process
was
initiated
a
few
months
back,
but
there
were
no
applicants,
because
everyone
was
so
happy
with
nick's
work.
Noah
wanted
to
apply.
Unfortunately,
nick
is
looking
to
end
his
term
at
the
board,
but
he
graciously
agreed
to
remain
a
trustee
with
police
on
fire
until
a
new
police
retired
members
is
appointed,
and
so
we
have
been
working
with
the
city
clerk.
K
I
believe
it
most
likely
will
be
early
in
the
2021
year.
They
will
kick
off
the
process
for
a
new
election
for
the
retiree
police
seat,
so
I
will
keep
you
posted,
but
that
means
nick
will
be
with
us
for
a
few
more
years
and
a
few
more
months,
including
21.,.
K
K
We
know
that
happened
from
time
to
time,
but
hopefully
you
have
received
your
ipads.
If
you
have
any
problems,
please
reach
out
to
us,
so
we
can
work
it
through
and
if
you
did
receive
the
ipads
and
they're
working
perfectly,
I'm
assuming.
We
also
send
you
information
how
to
return
the
all
ipad
back
to
the
office
so
again
hope
everything
is
working
well
and
kudos
to
staff
for
getting
the
new
ipads
and
shipping
them
to
all
trustees.
So
thank
you
very
much.
K
I
also
wanted
to
let
you
know
that
I
I
sent
you
an
email
just
recently,
but
I
wanted
to
remind
you.
Our
benefits
manager
will
be
out
on
leave
until
may
2021
and
so
that
that
meant
that
we
needed
to
make
some
adjustments
we're
still
working
on
a
complete
plan
going
forward.
K
Request
we
are
now
searching
for
a
new
senior
benefit
analyst
for
the
benefit
function.
We
also
just
hire
a
senior
benefit
analyst
for
the
healthcare
function,
which
was
a
higher
from
the
the
pension
side.
So
then
we
also
have
to
unfreeze
that
benefits
position,
and
I
also
wanted
to
let
you
know
the
person's.
The
new
senior
benefit
analyst
now
for
the
healthcare
portion
of
the
office
is
david.
K
Lissenbee
davey
was
a
benefit
analyst
with
the
pension
side,
so
we're
going
to
be
doing
two
searches
going
forward,
one
with
the
for
the
benefits,
analysts
and
one
for
the
senior
benefit
analyst
of
the
attention
side
of
the
equation.
And
lastly,
I
wanted
to
let
you
know
that
we
welcome
our
new
senior
auditor.
K
He
came
in
started
working
this
monday,
the
30th.
We
have
an
onboarding
meeting
with
him
early
in
the
week,
and
so
I
will
be
introducing
him
shortly
early
in
2021
at
the
audit
committee
meeting.
K
Of
course,
the
health
open
enrollment
just
ended.
Last
monday,
the
30th
and
the
race
received
about
400,
open
enrollment
forms,
that's
a
combination
of
police
and
fire
federated.
K
Most
of
them
are
really
re-enrollment
for
the
health
in
lieu.
I
won't
spend
time
explaining
that
detail,
but
that's
for
members
that
are
not
really
using
the
the
health
provided
medical
help
provided
by
the
city.
This
is
just
something
to
keep
track
in
case
they
ever
sign
up
for
it.
They
have
some
credits
and,
lastly,
I
wanted
to
close
it
by
letting
you
know
that,
as
as
always,
they
have
continued
to
work
remotely
completing
all
the
core
duties.
K
They're
very
much
engaged
and
committed
payroll
for
the
retirees
and
disabilities
are
continuing
to
be
processed
and
a
big
shout
out
to
our
accounting
staff
for
putting
out
and
releasing
your
agenda
this
this
morning,
the
popular
act.
The
popular
financial
report,
which
is
the
power,
is
a
condensed
version
of
the
comprehensive
financial
report.
It's
on
item
1.5.
So
if
you
got
a
chance
and
you
can
read
it,
let
us
know
what
you
think
about
it
and
that
scene
is
a
chair.
B
All
right,
if
not
we'll,
go
ahead
and
move
to
4b
oral
date
from
city
elite
council
liaison
pam
foley,
which
I
don't
I
believe
she
had
to
leave
the
meeting.
I'm
looking
for
her
name
right
now
and
I
believe
she's
left
the
meeting
she
had
another
meeting
to
attend
to,
but
she
did
give
an
update
about
the
pension
obligation,
bonds
that
the
city
council
is
going
to
start
looking
into
and
get
a
study
session
going
on.
B
B
B
All
right,
so,
if
there's
any
discussion
by
trustees
before
we
take
a
roll
call
vote,
please
speak
up
if
not
we'll
jump
to
a
roll
call
vote
for
drew
lanza.
B
All
right,
you
know
what
let's
try
and
take
it
at
the
exact
same
time,
so
we
just
do
one
roll
call,
but
we'll
do
the
vice
chair.
At
the
same
time,
last
month
I
was
nominated
for
vice
chair,
so
I'll
be
happy
to
fulfill
that
obligation
and
work
with
drew.
B
If
there
is
no
discussion,
we
will
go
at
the
same
time.
Vote
for
board
chair
drew
lonza.
Vice
chair
myself,
andrew
gardner
drew.
How
do
you
vote.
C
B
Howard,
yes,.
D
B
Yes,
nick
yes,
santos.
E
E
Sorry,
dick
yeah
dick
santos
yeah,
going
back
to
council
member
foley,
which
you
said,
wanted
some
best
advice
for
the
potential
bond
investments.
I
do
want
to
refresh
back
when
mr
new
farmer
was
the
city
manager
years
ago
there
was
a
66
million
dollar
bond
loss,
the
city
of
san
jose
that
made
historic
newspaper
headlines
and
put
us
in
a
bad
situation.
E
So
I
would
look
to
you
and
all
of
us
to
really
get
all
our
extramural
people
and
all
our
investors
to
really
take
and
help
out
the
council
on
that,
because
that
was
a
major
mistake,
way
back
and
find
out
how
that
all
came
about
so
not
to
so
we
can
make
sure
we
make
the
right
best
decisions
that
can
be
made.
B
Thanks
dick
and
I
think
yeah
we
definitely
have
to
take
in
that
consideration.
City
council
needs
to
be
aware
of
that
stuff.
From
my
understanding,
this
whole
process,
you
know,
takes
nine
to
twelve
months
to
go
through.
You
know
through
the
study
session
and
all
the
underlying
work
that
they
have
to
do
so.
This
is
just
starting
the
process
and
they
might
decide
you
know
after
they
do
their
due
diligence
that
you
know
it's
not
right
for
san
jose.
So.
B
Yeah
all
right,
thank
you
for
the
comments
all
right.
It
brings
us
to
five
one
retirement.
B
So
we
do
have
one
early,
no
roberto.
I
got
a
quick
question
for
you,
yes,
sir,
so
when
we
just
for
educational
for
myself
and
the
other
trustees,
the
reason
we
vote
for
we
had
to
approve
of
these
because
they
can't
officially
get
paid
if
they're.
If
we
don't
approve,
is
that
isn't
there
something
like
that.
B
Okay,
okay,
so
if
we
because
I
heard
that
on.
K
What
I
heard-
and
you
know
the
board-
has
a
history
of
doing
that
from
time
to
time
when
they
think
it's
not
appropriate,
so
you're
suffering,
you
definitely
have
the
right
to
do
so.
If
that's
how
you
feel
about
it?
Okay,
so
we
can't.
D
K
B
B
Okay,
all
right,
let's
go
to
yeah
early
retirements
51a
got
mark
e
stevens
police
officer
police
department,
effective
december
26
2020
with
21.64
years
of
service
service
retirement,
52a,
reid,
j,
bearsdorf
police
officer
police
department,
effective
january
9,
2021
with
25.23
years
of
service,
damien
bortoladi
police,
sergeant
police
department,
effective
january
9th
2021
with
27.82
years,
lisa
d,
gannon,
police,
lieutenant
police
department,
effective
december
12,
2020
with
27.78
years
of
service,
donald
guest
police
officer,
police
department,
effective
january
9th
2021
with
24.8
years
of
service.
B
B
2020
is
26.19
years
of
service,
kevin
laundry
police
officer,
police
department,
effective
january
9,
2021,
28.17
years
of
service,
with
reciprocity,
leonard
j
lim
police
officer,
police
department,
effective
december
26,
2020,
26.97
years
of
service,
paul
r,
messier
police,
lieutenant
police
department,
effective
january
9th
2021
at
27.3
years
of
service,
eric
j
quan
police
sergeant
police
department,
effective
december
12
20
with
26.34
years
of
service,
joseph
p,
snyder
police,
sergeant
police
department,
effective
january
8,
2021
25.49
years
of
service,
franco,
vado,
police
officer,
police
department,
effective
january
9th
2021
with
25.26
years
of
service.
B
Oh
sorry,
we
got
one
more
meeting
with
him:
jose
l,
vargas
police
officer,
police
department,
effective
january
23,
with
2021
26.18
years
of
service,
with
reciprocity
douglas
s,
wedge;
a
police,
lieutenant
police
department,
effective
january
9th
2021
of
27
point
for
two
years
of
service
and
we'll
capture
the
vested
ones:
real,
quick
sean
m,
eastman
police
officer,
police
department,
effective
december
30th
2020
with
30.45
years
of
service
with
reciprocity,
gina,
teaperton
police
officer,
police
department,
effective
december
16,
2020,
25.66
years
of
service
and
richard
j
westfall
police
officer
police
department,
effective
december
29,
2020
with
38.4
three
sorry
38.45
years
of
service
with
reciprocity.
D
B
D
B
Santos,
yes,
vince
hi,
franco,
hi
and
myself
gardener.
I,
this
is
a
this
year
this
month,
and
next
month
is
usually
our
time,
for
we
got
a
lot
of
retirements
coming
up.
These
are
all
police
officers,
and
I
can't
appreciate
enough
the
time
that
the
service
that
they
put
in
for
this
department
and
city,
I
hope
they're
all
retiring
healthy
and
they
can
enjoy
their
retirement.
Thank
you
very
much.
J
K
D
B
Might
not
hit
the
cola
in
time
so
we'll
see
what
happens
next
month
looks
like.
K
D
A
little
while,
unfortunately,
because
we're
not
going
to
be
able
to
hire
at
the
rate
that
they're
going
to
leave,
I
understood
yeah
mr
chair,
yes,
yeah
muyo!
Here
we
just
want
to
wish
all
of
these
folks
happy
and
healthy
retirement
moving
forward.
There's
a
lot
of
years.
There.
D
Those
those
26
and
27s
I'm
guessing
are
people
that
just
turned
50.
but
a
personal
note
of
thanks
to
franco
and
then
all.
B
Thank
you
now
and
then
I
want
to
say
you
know
personal.
Thank
you
to
franco,
for
you
know
his
service
and
commitment.
You
know
you
know
to
the
city
and
also
to
this
board.
You've
been
phenomenal
to
work
with
and
get
to
know,
and
you
know
best
of
luck.
You
know
in
retirement.
B
So,
let's
go
ahead
and
move
on
to
six
death
and
survivorship
notifications,
a
notification
of
the
death
of
george,
a
graham
police,
lieutenant
retired
september
4th
20
10
died
september,
13
2020,
no
survivorship
benefits
notification
of
the
death
of
jess
m
sanchez,
police
officer,
retired
january
26,
2008
died
october,
7,
2020
survivorships
benefits
to
marianne
sanchez
spouse.
B
Silence,
thank
you
condolences
out
to
the
families
of
of
george,
graham
and
jess
sanchez,
for
their
losses.
Nick
did
you
know
any
any
of
these.
These
people
officers.
D
Yeah,
I
actually
had
the
honor
of
working
with
both
with
the
with
with
george
and
jess,
when
I
was
a
young
officer,
a
couple
of
experienced
guys
that
I
had
the
opportunity
to
work
with
learned,
a
lot
from
them
and
so
sad
day
for
us
today
losing
both
of
them
and
if
I'm
not
mistaken,
frankly,
you
can
verify,
but
I
I
believe
jess's
son
came
to
work
for
the
pd.
I
don't
know,
if
he's
still,
if
he's
still
there
or
not
but
multi-generational
family,
there.
B
Yeah,
I
believe
I
believe
he
did,
and
I
just
wanted
to
point
out
that
that
is
way
too
short
in
the
retirement
to
pass
away.
B
Let's
move
on
to
committee
minutes
reports
and
recommendations,
7.1
investment
committee
esr-
I
don't
believe
we
met,
but
you
have
any
updates
comments.
You
want
to
make.
B
All
right
risk
audit
looks
like
last
meeting
was
october.
15Th
bottle
any
updates,
nothing
new,
all
right,
governance,
muyo!
Is
there
any
updates
from
you.
B
Perfect
disability
committee,
santos.
E
Thank
you,
mr
chair,
again,
just
keeping
the
paperwork
going.
Thank
you.
B
J
J
We
will
have
the
consultant
there
to
help
us
through
this
process
when
we
go
through
it,
but
on
page
two
of
that
document
this
is
item
7.5
c.
J
What
you
will
notice
is
that
we
have
two
tables
of
the
metrics.
We're
going
to
be
utilizing
as
we
evaluate
the
ceo
70
percent
of
the
weight
is
for
what
are
called
organizational
outcomes.
These
are
things
along
the
lines
of
investment,
performance
benefit,
administration,
cost
effectiveness
and
member
service,
and
then
30
percent
of
the
weight.
When
we
evaluate
and
do
compensation,
considerations
will
be
related
to
management
methods
and
those
are
things
like
enterprise
risk
management,
human
resource
management,
stakeholder
relations,
operations,
management
and
leadership.
J
The
next
page
page
three,
thank
you
for
putting
that
up
here,
go
to
page
three.
What
you
will
see
here
is,
as
we
do,
the
scoring
what
the
awards
can
be
for
the
individuals
if
they
score
below
70,
they
would
not
receive
a
compensation
increase
above
what
is
the
standard
increase?
The
city
would
grant
if
they
have
a
satisfactory
recommendation,
they
could
be
eligible
for
a
one
percent
increase
plus
two
days
of
executive
leave
and
what
we
did
in
the
commendable
and
outstanding
was
listed
ranges.
J
These
ranges
are
a
little
bit
different
than
what
the
city
has.
The
city
commendable
essentially
is
two
to
two
and
a
half
percent,
and
we
had
given
a
range
of
two
to
three
percent
for
commendable
and
outstanding.
The
city
is
2.5
and
we
listed
a
range
of
three
to
five
percent.
This
is
again
the
increase,
above
and
beyond
what
would
be
the
normal
increase
provided
by
the
city
plus
you'll
notice,
the
executive
leave
days
that
are
provided
there
and
then,
finally,
the
last
page
is
kind
of
trying
to
pull
it
all
together.
J
So
this
is
approved
by
the
joint
personnel
committee.
It's
simply
a
report
to
the
board
for
you
to
review.
It
is
not.
It
does
not
need
to
be
approved
by
the
board
as
long
as
the
joint
personnel
committee
approves
it
we're
still
working
on
the
document
for
the
cio,
given
the
fact
that
there
are
metrics
on
the
investment
side
that
we
need
to
dig
in
further
on
and
evaluate
before
we
complete
that,
so
that
will
come
to
you
in
a
future
date.
B
Thank
you,
vince.
Is
there
any
questions
from
the
trustees
regarding
this.
B
B
All
right,
any
public
comments.
E
K
Thank
you.
Thank
you,
mr
chair.
If
I
may
again,
I
want
to
echo
the
words
by
trustee
santos
from
staff.
We
want
to
thank
all
of
the
board
members
for
your
dedication
and
your
work.
During
this
past
kind
of
a
year,
2020
has
been
a
challenging
one
with
the
pandemic.
K
We
want
to
wish
everyone
and
all
stakeholders
and
members
of
the
plan
very
happy
holidays,
and
I
wanted
to
close
it
by
making
sure
that
we
thank
you,
andrew
for
your
efforts
and
steady
leadership
as
the
chair
during
a
very
challenging
2020
kobe
19
pandemic.
So
again,
thank
you
much
all
the
boy
for
your
work,
but
specifically
this
year.
I
want
to
sing
a
lot
andrew
because
of
your
leadership
as
the
chair.
So
thank
you
very
much
and
happy
holidays
to
all.
B
Thanks
thanks
roberto
and
I
look
forward
to
continue
working
with
you
know,
drew
on
the
next
year.
I
also
want
to
thank
staff.
You
know
without
these,
these
meetings
can't
happen
without
them.
So
thank
you
for
all
the
prep
work
going
into
this
meeting,
gender
preparation,
the
new
ipads
coordinating
all
that
stuff.
You
guys.
I
know
this
is
a
busy
season
with
the
you
know,
all
the
healthcare
registration
going
on
for
retirees.