Minutes of a Regular Meeting of the
Board of Directors
VLCT Employment Resource and Benefits (VERB) Trust, Inc.
April 27, 2017
VLCT Offices, Montpelier, Vermont
Directors present: Bill Shepeluk, Carrie Johnson, Joel Cope, Charles Safford, Todd Odit, Todd Provencher and Joe Colangelo
Directors absent: Kathleen Ramsay
VLCT staff present: Joe Damiata, David Sichel, Jeremiah Breer, Kelley Avery, Mike Gilbar, Maura Carroll and Larry Smith
Others present: Carrie Rice and Jillian Mulcahy (Johnson Lambert)
The meeting was called to order at 10:00 a.m.
A board quorum was confirmed.
Upon motion (Cope/Safford), duly adopted, the board voted unanimously to approve the meeting agenda.
Upon motion (Cope/Odit), duly adopted, the board voted to approve the minutes of the March 16, 2017 meeting. There was one abstention (Colangelo).
Carrie Rice and Jillian Mulcahy presented the results of the 2016 financial audit. No material weaknesses in internal controls, errors, incorrect statements or exceptions were identified. Key areas of the financial statements were highlighted along with the testing processes performed. The board requested net position when referenced specific to the Unemployment Insurance Program rather than the Trust as whole be more clearly stated in the future.
Upon motion (Odit/Safford), duly adopted, the board voted unanimously to approve the 2016 VERB Trust Financial Audit as presented.
Joe Damiata reviewed the staff report, which highlighted staff changes at VLCT as well as recent activities including an update on Cloud vendor services, VLCT's 50th anniversary plans and the new VLCT web site rollout. Mr. Damiata also noted that Michael Kilfoyle from Hickok & Boardman HR Intelligence will facilitate the board's Strategic Planning session scheduled for June 8th.
Jeremiah Breer provided the unaudited review of finances through March 31, 2017. Mr. Breer reminded the board that an accounting change was made to reflect credits in the year in which they were approved by the board rather than distributed, so credits are not yet reflected and will not be until fourth quarter 2017 when they are decided on for the 2018 fund year. Total net position is up $87,132 from year-end 2016, and total revenue is up 21.9%. Operating expenses are 4.7% lower than last year at this time, and investments earnings are down 41%.
Upon motion (Safford/Cope), duly adopted, the board voted unanimously to accept the unaudited financials through March 31, 2017.
Kelley Avery reported the unemployment bills have not yet been received for the first quarter, so the reports and analysis have not yet been completed. Ms. Avery provided a brief overview of unreconciled claims estimates through the first quarter. Estimated claims came to roughly $105,000 in benefits charged. This was over a 58% increase compared to Q4 2016, but a nearly 34% decrease compared to Q1 2016. If confirmed on reconciliation, this would prove to be the lowest Q1 on record in over 10 years.
David Sichel provided an overview of the Northeast Delta Dental (NEDD) proposed renewal. NEDD proposed a flat renewal with no increase in rates. Our claims are still excellent with participants making use of the PPO and Premier Provider networks. Additionally, NEDD is now allowing orthodontic riders for groups of five or more instead of 10 or more at no additional cost to our members.
The issue of white composite posterior fillings has become more prevalent with over 82% of all posterior fillings being done in white composite. Presently our coverage only allows for coverage of anterior white composite fillings, and posterior fillings are covered only at the silver amalgam level. Providers rarely use the silver amalgam anymore or offer participants a choice, which results in costly balance billings. Staff is recommending that we add the white composite posterior fillings to our coverage at a 2% increase in rates to benefit our members and their covered employees.
Upon motion (Odit/Colangelo), duly adopted, the board voted unanimously to approve adding white composite posterior fillings to the VLCT pool dental coverage with a resulting 2% increase in the NEDD pool dental rates for the July 1, 2017 and January 1,2018 renewals.
David Sichel provided a legislative update. Bills introduced include a revisit to the independent contractor definition for unemployment and workers compensation, which has proven to be challenging and a bill providing a PTSD workers ' compensation presumption for police, fire and ambulance, which is likely to be adopted this session.
Upon motion (Odit/Cope), duly adopted, the board voted unanimously to adjourn the meeting (11:55 a.m.).
David Sichel, Assistant Secretary