When you talk to a lot of people inside of pimp could mohammed had not been running the funds he was supposed to be managing hands on and all those things are a favor we like as the board try to get early so i know on the flip side were making 24 move its a great move to do this it is a safety move and people are saying i dont want to take a chance of the hours but it is very well, maybe that the team of pimp could maybe better so the fact theyve got facts from gm o and lost the staff and payroll came back and i think other people would be great to keep on top of that and see if its stabilized. Stabilized right we dont know having dan ive so on is now going to be running the firm and people say. Havent done that before and so we have to watch and see whether this new you know not star method but having a team they villaraigosa had a long time should produce a relative i think its a good move and definitely support it. Commissioner driscal salesmen as pimp could has been going on for a couple of years. I remember when airbnb left and came back and left quickly again, thats one of the signals okay there are other changes another our last Board Meeting i asked that the issue of deferred coming because the said pimp could runs the Management Team they are different and mr. Gross was key that change should we wait and have another Board Meeting no november thats the reason we dedicated to staff to act and they acted and the committee supported that versus waiting that was on october 15th and here with we are on november 12th now ive been through other Management Changes, too, and when we hes we lose and we lose more than half the time we husbands. I support this move i think its important to watch management weve been talking an allocation strategy and to wait for some of us on the board is usual for me its not that it is liquid investment skerl we have investments its about the fact theres been a sell off and potential 16th of marketing when theres a big sell off because Management Changes it means Everything Else is Walking Around without a stock to write this down you know waiting to see how things shakeout isnt necessarily the smallest thing especially commissioner bridges mentioned has better performances and fees you looked at a one or 5 or 10 number i support this. I support ratification of the replacement of it i have i guess two questions. Telling me what happens from october 15th when the committee met and the 3rd of november that triggered execution when we know for a year there are on the lock list and we know theres a sell off on a monthly basis of 25 billion and knowing that at that time the meeting took place that the sell off continued. What triggered. Again, it would come back to the daily headlines the ford 40 k they didnt say the dollar amount but one hundred and 15 percent of assets probably north of billion dollars so like San Francisco and ford and other deferred coming plans theres a government or governance process so the first i cant remember who mentioned it the 15 plus billion dollars come out of the fund in october and november theres a whole slew of thousand gifted plans just ford was a big one i mentioned like six or seven other big plans knowing there is a rush of other plans that are following the governance process we decided it was best to move ahead and no upside waiting another 8 days and it bend the participants thats all to the good. Second issue we accountants have a new company on board correct. Yes. How long will this company pay under the emergency hire. We will not consider the back and forth as an emergency hire we went through a deep analysis on 3 activity managers and we looked the van guard funds we dont view this as a hire h it is conservative option that stills is like to like in the sense of replacing pimp could we defined as having opportuneic it is similar but more conservative and significantly lower fees. Mr. Chair, i was torn i have to tell you locally theyve been around for a long personally, i was when you know the two firms and im sure commissioners know its a tough decisions because theyre great performance and the structure is great and if we had more funds and assets ill probably say give them part of that theyre well replaced in the industry. The chair will entertain a motion to rectify the pimp could. So moved. Second a discussion. Seeing none, 96 passes unanimously i was going to say i appreciate this interaction. Good call item 9 please. Commissioners this recommendation is simply to rectify an unintended consequence of what is going gadsby yard currently has a stable eventual fund its managed income fund is one hundred selfwrapped and we know the stabled value currently works we have an outside more than one organization that provides the wrap so what is happening the parents are paying the wrap twice were going to be removing the income fund from the wrap guidelines to it the planters will only be paying one. Its a confusing topic ill audio the reason the fund had to be double wrapped was 0 the market has rebounded so the market for the overlay stable fell to 96. 590 in august of 2012 and we were looking at the gifted wraps the wraps provider were not comfortable having that managed income section of that not one hundred percent wrapped now the ratio has improved 98. 6 as of september we can safe the fee schedule will drop 2. 2 basis point a 5 percent drop and thats the driving force the the recommendations. Thank you. Ill open up for Public Comment on item 9 close Public Comment commissioners. Mike. Im not sure Everybody Knows what with wrap is. This is question period and can you define wrap. Can i define that. Sure its in the event that the book that the market value rate follows the book value paid out for withdrawals that fell there was a deficit that insurance contract essentially would be what would kick in. Whats the price for the insurance. About 25 to thirty basis point have you 4 currently prior to the acquisition a so one of the great things that gal yard we have wrap from 25 to entertain a motion. A recommendation is there a second. Second. Commissioner now it is the mind if you know of comments. On the motion laughter . You can also have an opportunity to keep it in sync so the past wraurltz are done at the unit value; is that correct. Correct. Seeing nothing he will all in favor, say i. That passes unanimously thank you very much call item 10 please. This is a recommendation inaudible . Commissioners at the Deferred Compensation Committee theres been discussion on whether we should pair down the options for the participants theres been various reasons two many options they might be frozen u. S. Bancorp unable to see which ones but the prominently one at the october 15th Committee Meeting aging let me see presented actually two or three options with respect to the mid cap funds and the recommendation before you now is the option that the committee choose and that would be to implement element the mid cap value and Investment Options those if approved similar investments are available within the remaining options we also wanted to make sure that the boards knew that if, in fact, the members or planters in the fund wished to remain in one of the option you can, in fact, invest in them throw the selfbrokerage option we have some members of the public they were interested in the mid cap funds with respect to how were going to handle any transition from the target bay funds their current e currently held were not presenting anything to the board because in our next Deferred Compensation Committee meeting well be reviewing the guide path easements and we anticipate a recommendation where to map the assets and bring it ca back to the board for the next meeting. Anything to add. This elements two funds the mid cap has 1. 67 cap and it is tiny it reflect that many of our planters is overwhelmed when they looked at the target fund and the brokerage city is one the goal so really simplify the roster for the average participants that research has shown they go into paralyze and if theyre two conservative theyre not happy with the donation but to simplify the line up low participation and the low funds has experienced personnel changes and put them under watch and performance is similar to that fund it allows us to eliminate funds that are under watch. Just doing smith and combining it gives the manager to move the ability between two has been been discussed. We could create something for the white label a accomodation between what we discussed among the Committee Meetings not going two year down the simplification. What do you think about it. Angelas has small we dont have compensation plans that have any idea cap we only see small caps were comfortable with the mid cap as the case mid cap 4 that option is the stability low priced stock fund of all the funds really in the universe its hard to pinpoint that style it moves around and shows very tun ethnic it is s a good fund for participants that wants it to move around. Id like to add one point from the participants those folks who have money in the growth funds well be transferring that to the core fund you, however, the participants get a 60 day nose and thirty days theyll get 60 days notice to move the money if it, its there are on the day of the transfer want to put that read into the record. Well opening it up for Public Comment for this Public Comment any questions. Anyone want to entertain a motion of adoption . Discussion on the motion all in favor, say i. Your passes unanimously thank you very much call item 12 11 sorry. This is an item inaudible . Commissioners have you before you the monthly manager report which is selfexplanatory were happy to answer any questions you might have. Thank you after its submitted ill open up for Public Comment and if not close Public Comment and open up for questions. I want to make one comment on the final page or the next to the last to 6 since weve rolled out the bowl measure 3 hundred and 36 folks that go open 0 gold maker and make up the gold maker ems gold maker was a product or tool that was significant and plays a significant part in our recommendation and credential as far as the third party in october we have 2 hundred and 64 hosts e votes who enrolled in gold maker. Commissioner driscal. Where did they move the money from and please report that at the come on committee to share that with the full board. Yes. Id like to do that. Great call item 12. Actually jen even though the Services Corridor its been a long multi process and Research Project called for back in 2006, the Research Report was viewed and the engross draft and issued in june of 2012 weve got ann harper here to present this to the board and also have phil on the phone in washington, d. C. Testifying to the academy id like to mentioned that bill was on the Implementation Committee for the gadz be standards and great reach for the board. Bill can you hear us . Thats a no. laughter . Bill try speaking. Hi can you hear me. Yes. Some of us can. Okay. So were here to provide an overview of our report and answer questions you may have we have a slightly different format but briefing summarize the report and what it is used for and explain how it is comparing. This report is used four only accounting purposes theres a complete diversion from 9 and it reports the information for the gadz by Financial Statements all the schedules and notes to the disclosures and the information that needs to be provide by our automatic where are and included schedules for gadz by the 68 the standards informative the citys Financial Statements so the first reporting diet for the retirement system under the new gadz by standard is june 30th, 2014, whereas for the city theyre not required to implement until june 30th, 2015, so the city then has a choice to whether or not use november im sorry 2018 or 2015 as their masturbating so the gadz but if clicked in the report if the city elected to have a june 2015 date tha theres one report for that purchase ive talked about that between the funding and now im going to give highlights to the changes and difference in the old gadz by and new gadz by and how they differ first item is really all different terminology under gadz by so youre used to hearing actually accrue ability under gadz by those have been replaced with new terms and total pension liability the net pension liability is the u a l or unfunded address call the fiduciary net position so its just a terminology change and some of the calculations are a little bit different you have to get used to a new set of verbiage so starting with the total pension liability when is the accrued liquidate in gadz by criteria is that the systems that have Something Like your supplemental this differs from the liability we dont include the explicit colonel la for when do recognize a colonel la when their granted we advertise that over 5 years a little bit different of colonel la issue and the pension lobbied you see in the report the june 20th o 30th 2014 the liability from the june 30th information data we use 2014 data there a little bit different in the timing of the liability that is calculated the net pension liability or the unfunded under gadz by is calculated for all systems needed to use the value of market assets theres no longer the term actual value of assets what talking about gadz by theyve thrown that term out and everything is recorded on a value basis that gives me more uniformity another big difference is the annual Pension Expense that the city is to report on their Financial Statement and the city the expense is no longer their contribution that was made to the plan for that year theres an independent calculation and independent of funding thats also the reason why were giving you a completely separate report for accounting so its divorced from the funding expense under the new system is more volatile it was the acceptance of the employer contribution and in some years it will be close to the actually contribution and other years far away the main reason for the volatility is because of the timing of what you recognize the losses so some changes are changes in benefits and combadz by says you have to have a faster recommendation for the pieces and investigative losses to recognize the funding policies calls for 20 years were www. Roanokecountyva. Gov the dates youre going to see that apprehension spent be more up and down with the market and especially, since were volley ball things on a market basis as well Pension Expense for 2014 is viewed lower than the contribution it was made and the expectation were showing in the report was one hundred versus the actual contribution of 533 million the difference is mostly due to the good investment return for june 30th in 2014 which was about 17 percent so at this time i ask answer specific questions about the reports or a couple of exhibits i could show you the schedules to after overview with figures and stuff to our questions. Opportunity to look at our full report and the exhibits so thats ill open up for Public Comment on item 12. Seeing none, ill close Public Comment and ill open it up for questions by the excision commissioner driscal. Ill mark you may have answered the questions i want to clarify another set of schedules we want to push and schedules is different from what the city does the San Francisco control that briefed on this great theyve been briefed okay their decision is there a schedule . Those schedules and disclosure of more information i noted the discount rate from 7. 8 to 7. 2 im not sure how that occurred those changes will not trigger a change in the contribution rate because im asking the cash flow question it has not effect on the flow. So the difference of the amortization is a good disclosure by doesnt effect the city. No. With the controllers help do the bond agencies; right you have to explain a myriad of changes weve not had to explain this in particular because weve not been a resort and most public plans were not recorded id like to take you back to who we first started talking about the gadz by respirates requirements that was a test you can use our assumed return and we want you to project how far anti your money will take you in paying benefits and any part of that stream of benefits for every employee at a give point in time thats not payable youll have to use the Municipal Bond rate in that he 2012 we are that at an assumed point of return we were 6 points apart the city said they have no interest in