VACo / VML Pooled OPEB Trust
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VACo/VML Pooled OPEB Trust Annual Report of the Program Administrator 2010
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VACo / VML Pooled OPEB Trust. Annual Report of the Program Administrator 2010. VACo / VML OPEB Trust Accounts. Assets. $220.1 MM. $156.6 MM. $91.0 MM. $ Millions. Key Board Actions. Added 5% allocation (Portfolio I) to Hedge Fund of Funds – selected Grosvenor Multi-Strategy Fund - PowerPoint PPT Presentation
Transcript of VACo / VML Pooled OPEB Trust
VACo/VML Pooled OPEB Trust
Annual Report of the Program Administrator
2010
VACo/VML Pooled OPEB Trust
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VACo/VML OPEB Trust Accounts
Alexandria City Public SchoolsChesapeake Public SchoolsChesterfield CountyChesterfield County Public SchoolsCity of RoanokeCity of SalemCity of SuffolkCity of Virginia BeachFairfax CountyFairfax County Public SchoolsFauquier County & Public SchoolsFluvanna CountyHealth Care Commission of Chesterfield Henrico CountyHenry CountyHenry County Public Service AuthorityHenry County Schools
Henry County/Martinsville Social ServicesLoudoun CountyNewport News Redevelopment & Housing AuthorityNewport News Public SchoolsRappahannock Area Community Services BoardRichmond Metropolitan AuthorityRoanoke CountySalem City SchoolsSoutheastern Cooperative Educational ProgramsStafford CountyStafford County Public SchoolsStaunton City & Public SchoolsSuffolk Public SchoolsTown of AshlandTown of BlacksburgTown of LeesburgVirginia Beach City Public Schools
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Assets
$ Millions
$220.1 MM
2008 2009 2010 -
50
100
150
200
250
$91.0 MM
$156.6 MM
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Key Board Actions
Added 5% allocation (Portfolio I) to Hedge Fund of Funds – selected Grosvenor Multi-Strategy Fund
Added 23% allocation to Active Fixed Income Manager – selected PIMCO Total Return Fund
Conducted Fund Manager due diligence interviews with CS McKee and Artio Global Investors
Created a second investment portfolio
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Second Portfolio Added
Porfolio II provides another option for Local Finance Boards to consider in investing their OPEB assets.
Expected rates of return:Portfolio I – 7.5%
Portfolio II – 6.5%
Portfolio II is constructed with an alternatively weighted asset allocation but drawing from the same fund components as Portfolio I.
Transfers between Portfolios are allowed once a year. Local Finance Boards must provide notice by April 1. Transfer is effective on July 1.
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Education & outreach
Staff has conducted briefings with over 75 localities in past year.
Larger, stronger credits have generally decided to address their OPEB liabilities
Smaller, less strong credits are often still assessing: Economic conditions make funding a challenge
Cumulative liability starts out small, grows larger over time
Some looking at revising benefits
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Actions to assist smaller localities
Alternate fee schedule Offers lower upfront membership fee combined with higher annual fee for
first five years
Participants select:
Original fee schedule: $5,000 up-front plus 0.12% per year or
Alternative fee schedule: $1,500 up-front plus 0.25% per year
GASB Help – Online Actuarial Services Provides an online alternative to commissioning a complete actuarial
study – especially for employers with < 100 plan participants
Provided by Milliman Inc.
Fees start at around $1,600 for two-years of access
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Actuarial Services
VML/VACo Finance is partnering with Milliman Inc. to provide deeply discounted actuarial studies.
VML/VACo Finance provides a no-obligation fee quote in advance. Request form may be accessed on website.
An RFP is not required.
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VML/VACo Finance
For more information:
Robert Lauterberg, Managing Director
Steve Mulroy, Deputy Director
(804) 648-0635
valocalfinance.org
