VLCT Employment Resource and Benefits Trust, Inc.
Board of Directors Meeting
October 3, 2018
DoubleTree by Hilton, South Burlington, Vermont
Directors present: Bill Shepeluk, Todd Provencher, Todd Odit, Carrie Johnson, Kathleen Ramsay, Charles Safford, Chris Hoyt and Joel Cope (8:52 a.m.)
VLCT staff present: Maura Carroll, Joe Damiata, David Sichel, Michael Gilbar, Jeremiah Breer, Kelley Avery and Larry Smith
Others present: Dave Atherton (Town Manager, Brandon)
The meeting was called to order at 8:31 a.m.
A board quorum was confirmed.
Upon motion (Johnson/Odit), duly adopted, the board voted unanimously to approve the meeting agenda.
Upon motion (Ramsay/Johnson), duly adopted, the board voted unanimously to approve the minutes of the September 12, 2018 meeting.
Joe Damiata presented the staff report. Mr. Damiata mentioned the RFP process has begun for prospective auditors. Jeremiah Breer presented the timeline for the review process. The hope is to have interviews of prospective candidates completed and a final decision in December. This means an additional board meeting needs to be scheduled in January for board approval of the audit firm or firms selected.
Carrie Johnson presented the Report of the Nominating Committee for the board’s approval.
Upon motion (Safford/Odit), duly adopted, the board voted unanimously to approve the Report of the Nominating Committee.
President Shepeluk updated the board on the September 14 Joint Investment Committee meeting. The trust’s advisors proposed reducing the municipal bond rating minimum from AA to A- and adjusting the liquidity requirements. A copy of the Investment Policy with the proposed changes was included in the board packet.
Upon motion (Odit/Ramsay), duly adopted, the board voted unanimously to accept the Joint Investment Committee report and to adopt the proposed changes to the Investment Policy.
David Sichel reviewed the report of the actuary for the 2019 UI Program funding. The actuary is proposing a 5.5% reduction in rates at the 75% confidence level with an average member rate of 1.04%. The actuary also recommends a contribution credit be returned to the membership at the board’s discretion. Staff is once again recommending a contribution credit amount of $350,000 for next year. Staff is looking into methods of returning contribution credits to members in future years by doing an equal distribution, flat percentage adjustment which would be applied to all members, but this option is still under development and will be discussed with system programmers.
Director Odit suggested decreasing the program management fee for 2019 from $250 to $100 as a way of further reducing member costs. Staff confirmed this would be a simple adjustment to make.
Upon motion (Safford/Odit), duly adopted, the board voted unanimously to decrease the UI Program management fee from $250 to $100 for 2019.
Upon motion (Provencher/Johnson), duly adopted, the board voted unanimously to approve the report of the actuary, to approve the proposed rates for 2019 at the 75% confidence level with a 5.5% reduction and to award a contribution credit of $350,000 to the UI Program members for 2019.
Larry Smith updated the board on the 2019 health insurance renewal. Blue Cross and MVP 2019 Exchange plans are finalized, but there has been no additional information released on prospective association plans, which may be available through BRS (Business Resources Services) and VACE (the VT Chamber of Commerce). Larry has met with all Health Insurance Advisory Services (HIAS) groups to start preparing for renewal. The Town of Bethel has left the HIAS program, but we gained a new program participant with the Town of Williston.
Joe Damiata reminded the board the VERB/PACIF Joint Annual meeting will take place at 12:30 p.m.
Upon motion (Provencher/Safford), dulay adopted, the board voted unanimously to adjourn the meeting (9:09 a.m.).
David Sichel, Assistant Secretary