403(b) Committee Meeting - May 18, 2011

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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 May 18, 2011

 

The 403(b) Committee meeting was held at the Lincoln Center on Wednesday, May 18, 2011, at 2:00 pm. Committee members present were Leo Hudetz, Jeff Greenfield, Deena Elder, Travis Weidinger, and Lindy Graves. Visitors present from ING were Tim Kadlec from Portland, OR, and Julie Sullivan from Billings, MT.

 

COMMUNICATION FROM THE PUBLIC

 

There was no communication from the public.

 

PLAN UPDATE

 

A brief update on the Plan was given by Leo Hudetz. Leo Hudetz arranged this meeting with Tim Kadlec, from ING, to give a review of the investments and Planwithease, the third party administrator.

 

Leo Hudetz reviewed the Plan Account Summary compiled by Planwithease, the District’s third party administrator. The number of participants was listed separately by each vendor, with Valic having the highest number of participants. There is a total 445 participants. The number of participants is slowly increasing from last year. The total balance is over $12,000,000, which shows a substantial growth since October, 2010.

 

Leo Hudetz stated it is a challenge to keep track of participants who might exceed their annual limit, especially if they have more than one account. Controls have been put into place to monitor the annual contributions more closely. Tim Kadlec explained that a notification was available up to six times a year for anyone that appears to be on track to over contribute. Leo Hudetz will follow-up on getting the report submitted to the District.

 

 

403b FAIR—FALL 2011

 

In the past the 403b Fair has been held at the Lincoln Center. The attendance has not been good. Leo Hudetz would like to have suggestions to improve the attendance. It has been suggested to have it at one of the schools. Julie Sullivan suggested having it at MEA convention as one of the break-out sessions. Jeff Greenfield advised the request would need to go through MEA-MFP in Helena. He did not think it could be a break-out session but thought having a booth, as a vendor, would be possible. Julie Sullivan said she would like to see an educational session, not specific to a company. Julie Sullivan stated she would like to see the teachers educated on how it works and the benefit it is to them. Jeff Greenfield stated he did not know what the deadline was for getting this set up but to contact MEA-MFP for necessary requirements. It was mentioned that support employees need to be included.

 

Tim Kadlec stated a school district in Washington always gets an incredible number to attend their 403b Fairs. Tim Kadlec will find out what and how they present their 403b Fair. He knew they ran it in shifts by the different groups or schools. Julie Sullivan stated she knows of one district where it was run in conjunction with their health fair. It was noted that our health fair was at 15 or 20 different sites.

 

APPROVAL FOR MINUTES

 

Jeff Greenfield motioned to approve the minutes from the October 28, 2010 meeting. Deena Elder seconded the motion. It was voted on and approved unanimously.

 

ING/PLANWITHEASE REPORT

 

Leo Hudetz thanked Tim Kadlec for coming to give an update and Julie Sullivan, from ING in Billings.

 

ING Plan Review Booklet

 

All attendees received the plan review booklet distributed by Tim Kadlec. The plan review showed ING assets and a breakdown of their split. Asset Allocation Fund is by far the largest group which is a target date fund. Target date funds are mutual funds that are actively managed by a third party. Target date funds have an end date in place, which is to be the retirement date. Assets are invested according to the end date, getting more conservative as the date gets closer. These funds have a good performance and widely used. The fixed account is 3%. The review booklet had a performance update of all accounts. The different accounts were discussed.

 

The asset distribution by participants’ age was discussed. The largest group is the 56-65 year age bracket, with the 25 and under age bracket being the smallest.

 

Total assets have almost doubled from December 31, 2009 to December 31, 2010. This is because of market growth and the increase of participants.

 

Tim Kadlec advised ING has specific schools assigned to specific financial advisors. Advisors can only represent ING in those schools. ING is trying to promote the correct person in each school. Once they are set up, then they belong to that advisor. Some school principals are very welcoming to have you give a short presentation of a 403b and its’ benefits. Some school principals are not receptive to it. Julie Sullivan stated that during lunch was the best time to see possible clients, not after school. Leo Hudetz asked Julie Sullivan to advise him if she had problems getting approval to present at the schools.

 

Leo Hudetz has given HR the information to present 403b’s at the New Employee Orientation. He requested they present it at each orientation. Deena Elder stated no information was given at the orientations. Leo Hudetz will inform the committee later this fall concerning the 403b Fair.

 

 

ADJOURNMENT

 

The meeting was adjourned at 3:10 pm.

 

 

 

__________________________

Leo Hudetz, District Clerk

 

____________________________

Eva Anthony, Recorder