HomeMy WebLinkAbout06.a. (Handout) Section 115 OPEB and Pension Rate Stabilization Program Trust Client Review PUBLIC
AGENCY
RETIREMENT PA
SERVICES
TRUSTED SOLUTIONS. LASTING RESULTS.
CENTRAL CONTRA COSTA
SANITARY DISTRICT
Section 115 OPEB & Pension Rate Stabilization Program (PRSP) Trust Client Review
May 18, 2020
CONTACTS
PUBLIC PARS H I G HMARK°
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CAPITAL MANAGEMENT
Mitch Barker Andrew Brown, CFA
Executive Vice President Director, Senior Portfolio Manager
(800) 540-6369 x116 (415) 705-7605
mbarker@pars.org andrew.brown@highmarkcapital.com
Angela Tang
Client Services Coordinator
(800) 540-6369 x159
atang@pars.org
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 2
PARS 115 TRUST TEAM
Trust Administrator & Consultant
rLIBLIC
AGENCY 5 PARS Recordkeeping Processes contributions/disbursements
RETREMENE
Sub-trust accounting • Hands-on, dedicated support teams
TRUSTED SOLUTIONS.LASTING RESULTS. . Monitors plan compliance • Coordinates all agency services
36 1 ,500+ 1 ,000+ 500 K+ SUB
Years of Experience Plans under Public Agency Plan Participants Assets under
(1984-2020) Administration Clients Administration
Investment Manager
CVbank. AHIGHMARK-
CAPITAL MANAGEMENT
• 5th largest commercial bank and one of the • Investment sub-advisor to trustee U.S. Bank
nation's largest trustees for Section 115 trusts. • Investment policy assistance
• Safeguard plan assets, • Uses open architecture
• Oversight protection as plan fiduciary • Active and passive platform options
• Custodian of assets • Customized portfolios (with minimum asset level)
157 $5.OT 101 S17.4B
Years of Experience Assets under Years of Experience Assets under
(1863-2020) Administration (1919-2020) Management
PU AGENCY PARS
RETIREMEfYT
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 3
PARS IRS-APPROVED SECTION 115 TRUST
Prefund • • GASB 75 0 Prefund Pension (PRSP) GASB 68
I I I I
General Fund
prefund
Retiree Medical Benefits either or both Pension Rate Stabilization Program
Assets can be used to: Assets can be used to:
�r Reimburse agency; or F_ Reimburse agency; or
Pay benefits provider
Subaccounts Financial Stability Flexible Investing
OPEB and pension assets are Assets in the PARS Section 115 Allows separate investment
individually sub-accounted, Combination Trust can be used strategies for OPEB and
and can be divided by dept., to address unfunded liabilities. pension subaccounts.
bargaining group, or cost center
OAnytime Access Economies-of-Scale No Set Up Cost or Minimums
Trust funds are available OPEB and pension assets No set-up costs, no minimum
anytime; OPEB for OPEB aggregate and reach lower fees annual contribution amounts,
and pension for pension. on tiered schedule sooner - and no fees until assets are added.
saving money!
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 4
SUMMARY OF AGENCY'S OPEB PLAN
Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust
Trustee Approach: Discretionary
Plan Effective Date: November 6, 2008
Plan Administrator: Finance Manager
Current Investment Strategy: Moderate High Mark PLUS (Active) Strategy; Individual Account
AS OF APRIL 30, 2020:
Initial Contribution: March 2009: $560,000
Additional Contributions: $43,170,900
Total Contributions: $43,730,900
Disbursements: $0
Total Investment Earnings: $23,916,147
Account Balance: $66,259,100
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 5
SUMMARY OF AGENCY'S PENSION PLAN
Plan Type: IRC Section 115 Irrevocable Exclusive Benefit Trust
Trustee Approach: Discretionary
Plan Effective Date: July 20, 2017
Plan Administrator: Finance Manager
Current Investment Strategy: Moderately Conservative HighMark Plus (Active) Strategy; Individual Account
AS OF APRIL 30, 2020:
Initial Contribution: August 2017 $3,359,000
Additional Contributions: $5,472,200
Total Contributions: $8,831,200
Disbursements: $0
Total Investment Earnings: $752,793
Account Balance: $9,676,664
PUBLIC
PARS
AGENCY
RETIREMENT
SERVICES
TRUSTED SOLUTIONS.LASTING RESULTS. CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 6
PARS: Central Contra Costa Sanitary District
OPEB and Pension Plan
April 30, 2020
UPDATE
Presented by
Andrew Brown, CFA
J HIGHMARKC
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 1 7
2020 2020 2021
Previous Revised
Assumptions Assumptions Assumptions
DP 1 .9To ".NO -4.8% - -6.3% 2.50% - 4.0%
S&P500 earnings 40 40
Unemployment .70% 7%-10% 5.50%
unds arget 1 .25% . 0% - 0.25% 0% - 1 .25°
Selected Period Performance
CCCSD -OPEB
Period Ending: 4/30/2020
Year Inception
to Date to Date
1 Month (4 Months) 1 Year 3 Years 5 Years 04/01/2009
Cash Equivalents .02 .32 1.63 1.56 1.03 .52
Lipper Money Mark et Funds Index .04 1.60 1.49 .95 .44
Fixed Income ex Funds 2.20 3.52 9.33
Total Fixed Income 2.27 2.86 8.48 4.64 3.57 4.77
BB Barclays US Aggregate Bd Index 1.78 4.98 10.84 5.17 3.80 4.36
Total Equities 12.20 -14.23 -6.14 4.87 5.45 12.19
Large Cap Funds 12.76 -10.08 -.29 8.16 8.22 13.69
S&P 500 Composite Index 12.82 -9.29 .86 9.04 9.12 14.76
Mid Cap Funds 14.51 -16.57 -10.07 3.03 3.88
Russell Midcap Index 14.36 -16.60 -10.00 3.46 4.81 14.41
Small Cap Funds 15.00 -22.38 -17.64 .68 4.21 14.16
Russell 2000 Index 13.74 -21.08 -16.39 -.82 2.88 12.28
International Equities 7.61 -18.04 -11.24 -.21 .29 6.99
MSCI EAFE Index 6.46 -17.84 -11.34 -.58 -.17 7.15
MSCI EM Free Index 9.16 -16.60 -12.00 .57 -.10 7.00
Real Estate - ETFs/Sctr Fds 8.74 -17.35 -9.15
Wilshire REIT Index 8.44 -19.35 -12.42 .20 2.64 15.31
Total Managed Portfolio 6.80 -5.83 .94 5.01 4.71 8.53
CCCSD OPEB 6.69 -4.93 1.78 5.04 4.83 8.58
Account Inception:4/2009
CCCSD OPEB Benchmark consists of:26.5%of S&P 500, 5% Russell Midcap,7.5%Russell 2000, 1.75%Wilshire REIT,3.25%MSCI EM Free,6%MSCI EAFE,33.5%BC Aggregate, 10%ML 1-3
Yr US Corp/Govt, 1.5% ML US High Yield Mstr II,and 5%Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized.The
information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank
Jguarantee, and may lose value.
HIGHMARKC
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 9
Selected Period Performance
PARS/CCCSD 115P - PENSION
Acount 6746055901
Period Ending: 4/30/2020
Year Inception
to Date to Date
1 Month (4 Months) 1 Year 09/01/2017
Cash Equivalents .02 .33 1.65 1.66
Lipper Money Mark et Funds Index .04 .36 1.60 1.59
Fixed Income ex Funds 1.84 3.48 9.19 4.78
Total Fixed Income 2.01 3.01 8.65 4.51
BBG Barclays US Aggregate Bd Index 1.78 4.98 10.84 5.05
Total Equities 12.17 -14.36 -6.34 3.32
Large Cap Funds 12.74 -10.15 -.33 7.55
S&P 500 Composite Index 12.82 -9.29 .86 8.44
Mid Cap Funds 14.29 -16.66 -10.15 2.62
Russell Midcap Index 14.36 -16.60 -10.00 2.90
Small Cap Funds 15.28 -22.58 -17.84 -.44
Russell 2000 Index 13.74 -21.08 -16.39 -1.22
International Equities 7.71 -18.20 -11.19 -3.34
MSCI EAFE Index 6.46 -17.84 -11.34 -2.95
MSCI EM Free Index 9.16 -16.60 -12.00 -3.76
Real Estate - ETFs/Sctr Fds 6.30 -19.58 -11.59 .25
Wilshire REIT Index 8.44 -19.35 -12.42 -.72
Total Managed Portfolio 4.64 -2.26 3.94 4.12
CCCSD Pension 4.59 -1.41 4.67 4.52
Performance Inception: 09/2017
CCCSD Pension Benchmark consists of: 15.5%of S&P 500,3%Russell Midcap,4.5% Russell 2000, 1%Wilshire REIT,2%MSCI EM Free,4%MSCI EAFE,49.25%BC Aggregate, 14%ML 1-3 Yr
US Corp/Govt, 1.75% ML US High Yield Mstr ll, and 5% Citigroup 1 Month T-Bill Indexes. Returns are gross-of-fees unless otherwise noted. Returns for periods over one year are annualized. The
information presented has been obtained from sources believed to be accurate and reliable. Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank
Jguarantee, and may lose value.
HIGHMARKC
CAPITAL MANAGEMENT CENTRAL CONTRA COSTA COUNTY SANITATION DISTRICT 1 10