curnowc Posted June 15, 2011 Report Share Posted June 15, 2011 Proceeding of the 403 (b) Committee Meeting School District No. 2, Yellowstone County High School District No. 2, Yellowstone County Billings, MT CALL TO ORDER October 28, 2010 The 403(b) Committee meeting was held at the Lincoln Center on Thursday, October 28, 2010, at 10:00 am. Committee members present were Leo Hudetz, Jeff Greenfield, Lindy Graves, Jay Lemelin, Deena Elder, Travis Weidinger, Dan Martin, and Sheri Weidinger representing Thomas Harper. Visitors present from Valic were John Wing and Fernand Duchesneau. COMMUNICATION FROM THE PUBLIC There was no communication from the public. Review of Committee Charter Leo Hudetz introduced new members to the committee. Jay Lemelin, principal at Boulder, is taking Cheryl McCall’s place. Lindy Graves is the trustee representative. Deena Elder is representing BCEA, Travis Weidinger represents MPEA and Jeff Greenfield represents BEA. Leo Hudetz gave a recap of how and why the committee evolved. It has been a positive outcome with good terms with reduced fees. Our third party administrator, Plan with Ease, is associated with ING. The 403b committee was developed to monitor the plan. The committee meets two times a year. If any members have any questions at any time, Leo Hudetz advised them to call him. Elections Elections for the Chair, Vice Chair, and the Secretary/ Record keeper are to be held once a year. Leo Hudetz opened the floor for the Chair position. Jeff Greenfield nominated Leo Hudetz for the Chair position and Lindy Graves seconded. There were no other nominations. It was voted on and passed unanimously. Jay Lemelin nominated Jeff Greenfield for Vice Chair and Leo Hudetz seconded. There were no other nominations. It was voted on and passed unanimously. Jeff Greenfield nominated Eva Anthony, for record keeper. Deena Elder seconded. There were no other nominations. It was voted on and passed unanimously. Plan Update Leo Hudetz reviewed the Plan Account Summary and Investment Profiles. The account balance of $10,787,861.20 only reflects money that has been contributed into one of the five select vendors and Symetra Life. Symetra Life is not a select vendor but they share their info with Plan with Ease. Leo Hudetz explained that ING and ReliaStar Life are one company with different products. The plan account balance has increased by 21% in the past year. This is quite a significant increase. Possible explanation for the increase is due to more employees participating, employees have increased their contributions, and some have made better investments. The District has 298 active employees in the plan and 114 retired or no longer contributing. Leo Hudetz stated the one question he receives repeatedly is how to get access to the money if you are a current employee. The employee must have a qualifying event to withdraw their money. A qualifying event is when an employee terminates employment with the District; they are at least 59 ½ years old, disabled or death. In order to get a hardship withdrawal, the employee must have a qualifying event, such as college tuition or a mortgage foreclosure. The IRS is very specific about what qualifies as a qualifying event. A hardship withdrawal is subject to taxes and penalties. The other option is obtaining a loan from your 403b. No more than one half of the total amount may be borrowed, up to a maximum of $50,000. If an employee is requesting either a hardship withdrawal or a loan, they must complete the forms on the Planwithease website. Authorization will be given through the website and the employee must then give the authorization to their vendor to be processed. Plan Document Review The Plan Document was reviewed for any complaints, problems or wording issues. Leo Hudetz stated that he had not run into any issues with the Plan Document. The electronic transfer was discussed and it was agreed to be working very well. The transfer is being completed the day of payroll. Leo Hudetz requested that if any of the committee members hears of any suggestions or issues with the plan, to be sure to advise him. It was agreed the Plan Document is working well. 403b Fair Per IRS requirements all employees need to be notified once a year that they may participate in a 403b. The 403b Fair will be held October 28 at 4:00 in the Board Room. All employees received a flyer and all employees with an email received notification of the Fair. Minutes Jeff Greenfield made a motion to approve the minutes from September 30, 2009 and May 11, 2010. Dan Martin seconded the motion. The minutes were approved with a unanimous vote. Valic John Wing, District Manager, and Fernand Duchesneau, Financial Advisor, gave an update on Valic. John Wing explained during 2009 Valic was looking at being sold. Because AIG would not agree to a fire sale, the process stopped. After it was determined they would not be sold, the Valic name was brought back. It was decided not to sell because they are solid and profitable. Valic is part of several companies under the umbrella of Sun America Financial Group. Valic continues to be a wholly owned subsidiary of AIG. Valic reports to Sun America. Valic is completely independent, governed by the insurance laws of Texas. John Wing stated there are risks in the market but not a risk because of the owner association. Valic focuses primarily on assisting middle income people saving for retirement. Billings Public Schools is one of the largest districts in the state in terms of assets under management and the number of participants. Valic is nationally the largest provider in terms of assets under management in K-12. They are very committed to this market. John Wing distributed the plan review to members at the meeting. He explained some of the financials over the past year. There was an 11% increase over the last year. This is a very conservative portfolio. John Wing discussed some of the demographics of the participants. The different types of available accounts were discussed. John Wing stated he would discuss the benefits of savings outside of TRS and PERS at the 403b Fair. Fernand Duchesneau explained his procedures about getting new clients. He assists his clients on paperwork completion when they turn 70 ½ years, answers questions on hardships loans and any other questions. He likes to meet with clients on a regular basis to review their portfolio and make changes if needed. ADJOURNMENT Jeff Greenfield made a motion to adjourn the meeting. Travis Weidinger seconded the motion. The meeting was adjourned at 9:57 am. __________________________ Leo Hudetz, District Clerk ____________________________ Eva Anthony, Recorder Link to comment Share on other sites More sharing options...
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