The Greenlight Retirement Program. Minutes of the 12 th Governance Committee Meeting Held on Wednesday December 3, :30 a.m.

Size: px

Start display at page:

Download "The Greenlight Retirement Program. Minutes of the 12 th Governance Committee Meeting Held on Wednesday December 3, :30 a.m."

Ann Francis
6 years ago
Views:

1 Minutes of the 12 th Goernance Committee Meeting Held on Wednesday December 3, :30 a.m. TBC Offices Committee: Rob Tamblyn Andy Loscher Matthew Loscher Moe Mailloux The Benefits Company Inc. The Benefits Company Inc. The Benefits Company Inc. Moe Mailloux Financial Serices Facilitator: Joe Nunes Actuarial Solutions Inc. TBC Staff: Leanne Hillman The Benefits Company Inc. Denise Parent The Benefits Company Inc. Adisors: Kein Delaney Delaney Financial Serices Guests: None Forward - The Big Picture - This meeting reiewed inestment performance as at September 30, A significant number of inestment funds hae declined during the year and certainly through this last quarter. The Committee has not turned a blind eye to more recent and certainly more dramatic changes since September 30. Howeer, the Committee notes three key facts: First, for retirement saings, down markets are not seen as a catastrophe for those with longer time horizons of inesting, since markets will almost always rise again the key focus should be the long-term return on funds. Second, a down market creates buying opportunities. The nature of pension funds means that new contributions will automatically be added during these opportunistic times. Third, although many of the inestment funds within the program hae declined during the quarter. Oerall declines are less than the general market as a result of the selection of less aggressie funds within the menus. 1 of 8

2 Meeting Minutes 1. Call to Order The meeting was called to order at 8:30 a.m. Rob Tamblyn is the meeting Chair and Leanne Hillman is the meeting Secretary. Introduction of Guests Kein Delaney was welcomed. Approal of Agenda [Motion] Rob proposed that the agenda be approed without change. All in faour. Carried. 2. Secretary s Report Distribution of Prior Minutes The minutes of the meeting held on September 10, 2008 were distributed. The minutes were preiously approed ia and hae already been distributed to clients electronically. 2. Recordkeeper s Report The following reports were receied: Manulife Small exposure to impaired credit markets Sun Life Organizational changes at USB AG Sun Life Changes to Fidelity funds Sun Life Name change of ABN AMRO to Fortis Inestment Management Sun Life Exposure to impaired credit markets CI Inestment Consulting Market commentary Inestco Perpetual (Trimark) Market commentary The Committee has noted from the aboe reports, that exposure to troubled US companies: Lehman Bothers, AIG, Morgan Stanley, Merrill Lynch, Washington Mutual, Fannie Mae, and Freddie Mac within the Greenlight Fund menu is ery limited. [Action Item #90] The Benefits Company will deelop an analysis of total assets at the beginning and end of the year, total cash flow, and aerage return for the entire Greenlight portfolio (new plans added during 2008 will be excluded). The portfolio return will be compared to general market indices to confirm that oerall Plan Members and Sponsors hae been protected by the selection of less risky inestment funds within the menu of funds. 2 of 8

3 The Benefits Company submitted a request to the Committee for clarification on the appropriate processes that should be in place to help Plan Sponsors manage plan membership and waiers. Further clarification was also requested as to a record retention policy and record ownership for The Benefits Company and adisors. [Action Item #91] The Benefits Company will deelop a process for reiewing participation leels by comparing plan membership to plan sponsor payroll and ensure that Plan Sponsors are aware of the need to obtain participation waiers for non-participating employees. [Action Item #92] The Committee delegated to The Benefits Company the deelopment of changes to the Member Care Handbook as it pertains to a record retention policy and record ownership. The Committee discussed the impact of making a program-wide change in plan proisions (such as mandatory membership) and the paperwork that would be created. [Action Item #93] The Committee asked Actuarial Solutions Inc. to inestigate the legal framework inoled in creating a multi-employer defined contribution program to ease the burden of regulatory filings and client approals. The Committee discussed the Member Care Handbook and questions that arose at the Adisor Recertification Meeting. [Action Item #94] The Committee scheduled a separate meeting of its members on December 12, 2008 to address necessary changes to the Member Care Handbook. 3. Administratie Reiew Participating Plan Sponsors The Benefits Company confirmed that as at September 30, 2008 the accumulated assets in the Greenlight Retirement Program for each recordkeeper were: Recordkeeper Assets ($millions) September 30, 2008 June 30, 2008 Great-West Life Manulife Standard Life Sun Life Total of 8

4 Plan Sponsors Pending Approal The Benefits Company confirmed that as at September 30, 2008 members pending approal with each recordkeeper were: Recordkeeper Assets ($millions) September 30, 2008 June 30, 2008 Great-West Life Manulife Standard Life Sun Life Total [Action Item #95] The Committee asked The Benefits Company to setup a process to ensure that prospectie clients that choose not to join the program are sent a thank you letter and are remoed from the pending approal listing. Member Meeting Tracking The Benefits Company presented an updated report on Member Meeting Tracking. The report continues to increase in detail and maintains a mixed success in holding meetings with plan members to ensure that each member establishes an appropriate plan for retirement saings and makes appropriate inestment decisions gien their time horizon and risk tolerance. Of particular concern is the inability of some adisors to gain access to employees for member meetings. [Action Item #96] For 2009, The Committee asked The Benefits Company to update the report format to show separately: 2007 meetings held, 2008 meetings held, 2009 meetings held, 2009 meetings scheduled, as well as scheduling notes. In addition, the report will for 2009 start to track percentage attendance as the ratio of the actual attendees (as recorded on the attendance sheet) to the total plan membership reported by the insurance carrier. [Action Item #97] The Committee asked The Benefits Company to assist Adisors in scheduling education sessions and obtain clear documentation from employers choosing not to allow on-site education. Prior Action Items The Goernance Committee reiewed the inter-meeting actiities requested in the prior meeting as follows: [Prior Action Item #80] The Benefits Company confirmed for each Recordkeeper past re-optimization of asset allocation funds along with timelines and results. It was noted that there are no set requirements or standards amongst the Recordkeepers as it pertains to asset allocation re-optimization. 4 of 8

5 [Prior Action Item #81 & #82] Initations to Great-West Life and Industrial Alliance were completed. [Prior Action Item #83] The Benefits Company held an Adisor Recertification Meeting on Noember 26, Adisor feedback was receied and addressed by The Benefits Company directly. [Prior Action Item #84] Combined with Action Item #96 aboe. [Prior Action Item #85] The project to deelop a comparison of fund accumulation for an engaged Plan Sponsor as compared to an unengaged Plan Sponsor was discussed. Upon reiew, The Committee has decided to discontinue the project. [Prior Action Item #86] The Benefits Company presented a completed Greenlight Inestor Profile. The Benefits Company also presented a retirement income projection worksheet. [Motion] Rob made a motion to approe the Greenlight Inestor Profile and to allow for its introduction to member meetings during 2009 as existing printed supplies run out. Seconded by Andy. Carried. [Action Item #98] The Committee asked The Benefits Company to inestigate with Recordkeepers the accessibility to member data contained on printed member annual statements (accumulated assets, current cash-flow and Recordkeeper retirement income projections) and to circulate a projection worksheet to Adisors for comments. [Prior Action Item #87] Manulife confirmed its benchmark for the Jarislowsky Fraser (JF) Balanced fund which is inconsistent with the benchmark proided directly by JF in Prior Action Items #69 & #77. [Action Item #99] The Committee asked The Benefits Company to proide Manulife with the benchmark proided by JF to gain further clarification on the discrepancy. [Prior Action Item #88] Manulife proided alternatie funds to the MFC Large Cap Value Equity fund and the Fidelity Growth America fund as requested. The performance information of the alteratie funds proided was as at August 31, [Action Item #100] The Committee asked The Benefits Company to obtain the inestment performance of the alternatie fund proided by Manulife as at September 30, 2008 and December 31, In addition to request that Manulife respond formally by letter. [Prior Action Item #89] Sun Life did not proide alternatie funds to the Bisset Canadian Equity fund. The Committee reiewed the fund s performance and leel of assets inested and decided that no action will be taken at this time. 5 of 8

6 Contribution Arrears & Form 7 The Benefits Company confirmed that all Form 7s due on or before September 30, 2008 had been filed. The Benefits Company confirmed that most clients were current as at September 30, 2008 in their contributions to their respectie plan. One client may or may not be in arrears as the ast majority of the workforce has been laid off and contributions hae ceased. [Action Item #101] The Committee asked The Benefits Company to inestigate the status of actie membership in the plan and to confirm if in fact there are no required contributions currently. 4. Inestment Reiew Inestment Policy Reiew The Statement of Inestment Policy and Procedures was not reiewed. Great-West Life Presentation Shari McNeil, RPA, Senior Account Executie, GRS, Great-West Life; Sarah Hopkins, RPA, Client Relationship Manager, GRS, Great-West Life; and Robbin Dichter, CFA, Director National Inestment Serices, GRS, Great-West Life presented an inestment reiew to the Committee. Highlights of the presentation are: The JF International Equity fund is no longer aailable to new plans. Existing plans can continue to offer this fund but Plan Sponsors hae been adised of performance concerns. NOTE that this fund was remoed from the Greenlight menu in December, 2007 with fund mappings being completed by May The Committee discussed the approach used by Great-West life in keeping funds on its menu and related this approach to the size of their oerall fund menu (approximately 200 funds) and the cost of maintaining this olume of funds (trading, audit, systems, etc). [Action Item #102] The Committee asked Great-West Life to proide information circulars to be proided to clients explaining its justification for haing higher IMFs than competitors (alue proposition). The Real Estate fund was discussed. Notably, the fund proides an automatic smoothing of results (both positie and negatie) as a result of the fact that not all properties are realued continuously. In addition, the fund has afforded some protection in down markets as a result of the fact that the fund does not take large mandates or defined benefit plan assets, it holds significant cash, has a $100 million line of credit, currently has a low debt load, and is focused on high quality properties in major markets. 6 of 8

7 The Profile family of funds (and the companion Portfolio and Continuum funds) were reiewed in detail. The Profile funds hae historically shown the lowest olatility. All three families of funds hae the same benchmarks. Inestment Performance Reiew Great-West Life The Benefits Company presented inestment performance results for each fund in inestment menu as reported by Morningstar and Great-West Life. Inestment Performance Reiew - Manulife The Benefits Company presented inestment performance results for each Manulife fund on menu as reported by Morningstar. Inestment Performance Reiew Standard Life The Benefits Company presented inestment performance results for each Standard Life fund on the proposed Greenlight Retirement Program menu as reported by Morningstar. Inestment Performance Reiew Sun Life The Benefits Company presented inestment performance results for each Sun Life fund on the proposed Greenlight Retirement Program menu as reported by Morningstar. Presentation Industrial Alliance Industrial Alliance is currently not a Recordkeeper in the Greenlight program. Industrial Alliance was inited to make a presentation to the Committee highlighting its approach to defined contribution programs with an emphasis on differences between Industrial Alliance and the major Recordkeeper. One notable difference was that Industrial Alliance holds the philosophy that an inestment fund, once remoed, should be completely remoed with all funds being mapped to a new inestment fund. This practice allows Industrial Alliance to keep its fund menu trim. 5. New Business No new business was discussed. 6. Future Meetings The following dates were set for Meetings will continue to start at 8:00am and will be scheduled to last until 2:00 pm to allow for the increasing workload of the Committee. 7 of 8

8 2009 Meeting Dates #13 Wednesday March 4, :00 AM to 2:00 PM #14 Wednesday June 3, :00 AM to 2:00 PM #15 Wednesday September 16, :00 AM to 2:00 PM #16 Wednesday December 2, :00 AM to 2:00 PM [Action Item #103] The Committee asked The Benefits Company to inite Sun Life to the next meeting to be held in March. 7. Adjournment [Motion] Rob made a motion to adjourn the meeting. Carried. Seconded by Matt. 8 of 8

The Greenlight Retirement Program

The Greenlight Retirement Program Wednesday, September 7, 2016 8:00 a.m. The Benefits Company, Inc., 2795 Kew Drive, Windsor, ON N8T 3B7 43 rd Governance Committee Meeting Minutes Committee: Kevin Delaney