Title
Adopt a Resolution to:
a. Approve revisions to the County of Monterey’s Investment Policy Statement for the Section 115 Pension Trust, which is administered by Public Agency Retirement Services (PARS) with investment management provided by PFM Asset Management (PFMAM); and
b. Reappoint the County Administrative Officer as the Plan Administrator.
Body
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Approve revisions to the County of Monterey’s Investment Policy Statement for the Section 115 Pension Trust, which is administered by Public Agency Retirement Services (PARS) with investment management provided by PFM Asset Management (PFMAM); and
b. Reappoint the County Administrative Officer as the Plan Administrator.
SUMMARY:
In June 2021, the Board of Supervisors (Board) established a Section 115 Pension Trust (“Pension Trust”) for pension obligations with the Public Agency Retirement Services (PARS) to address the County’s growing unfunded accrued liability (UAL). At the same time, the Board also adopted a Pension Liability Policy to provide oversight and procedures for the administration of the Pension Trust. At the time of adoption of the Pension Trust, PARS partnered with HighMark Capital Management (HighMark) to serve as the investment advisor and manager of the Pension Trust assets. In June 2021, the County, under advisement from HighMark, executed an Investment Policy Statement detailing the responsibilities of both parties and approved investment strategies. On January 1, 2024, HighMark was merged by its parent company into PFM Asset Management (PFMAM). Given this change in investment advisor, PFMAM is requesting an update to the Investment Policy Statement.
DISCUSSION:
The initial investment policy was approved to establish guidelines for investing and managing the County’s Pension Trust and included the following:
- Document investment objectives, performance expectations, and investment guidelines for...
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