VLCT Property and Casualty Intermunicipal Fund and VLCT Employment Resource and Benefits Trust, Inc. Membership Joint Annual Meeting
Diamond Ballroom, DoubleTree by Hilton
South Burlington, Vermont
October 3, 2018
PACIF Directors Present: Pete Johnson, Carl Rogers, Joshua Powers, Neal Fox, Aaron Frank, Jackie Higgins, Stuart Hurd, Jerry Storey, Bruce Urie, Brendan Whittaker and David Atherton
VERB Directors Present: Bill Shepeluk, Kathleen Ramsay, Carrie Johnson, Todd Odit, Kathleen Ramsay, Christopher Hoyt and Joel Cope
A quorum was confirmed for both the VERB and PACIF Trust organizations by member sign-in.
VERB Trust President Bill Shepeluk called the VERB annual meeting to order at 12:32 p.m. and asked for approval of the agenda.
Upon motion (Johnson/Hurd), duly adopted, the agenda was unanimously approved by the membership.
Upon motion (Powers/Hurd), duly adopted, the minutes of the 2017 Joint Annual Meeting were approved by the membership.
Laura Macuga of Johnson Lambert reviewed a summary of the 2017 VERB Trust audit. Commissions decreased .8%, and claims paid decreased by 25%. Consulting fees were also down. Net investment income increased $73K, largely due to increases in interest and dividends. $350K was returned to members in Unemployment Insurance contribution credits. There were no audit adjustments or uncorrected misstatements.
Upon motion (Ramsay/Durfee), duly adopted, the report of the 2017 VERB Trust audit was unanimously accepted by the membership.
President Shepeluk introduced other members of the board, briefly discussed the trust’s history and pointed out VERB Trust programs highlighted in the VLCT Annual Report. Mr. Shepeluk also announced the board met this morning to set rates for the UI program for 2019 and decided on a 5.5% rate reduction and a $350K contribution credit return to members. Individual member rates will vary. In addition, the board voted to decrease the UI Program annual management fee from $250 to $100 for all members. Mr. Shepeluk highly encouraged members to take advantage of the trust’s Health Advocate program, available to all VERB Trust member employees at no cost.
Joe Damiata provided the staff report to the membership and asked VLCT staff to stand and be recognized. Mr. Damiata highlighted the various programs available through the VERB Trust. Mr. Damiata also announced some association health plans may be available outside of the Exchange in 2019, and VLCT staff will inform members once any additional information becomes available on these plans.
Director Johnson presented the Report of the Nominating Committee and slate of officers.
Upon motion (Safford/Mackenzie), duly adopted, the members voted unanimously to accept the Report of the Nominating Committee and the slate of officers as presented with renewed three-year terms for directors Joel Cope, Kathleen Ramsay and Todd Provencher.
Upon motion, duly moved and seconded, the members voted unanimously to adjourn the VERB Trust annual meeting at 12:57 p.m.
PACIF President Pete Johnson called the PACIF annual meeting to order at 12:57 p.m.
Upon motion (Powers/Fox), duly adopted, the agenda was unanimously approved by the membership.
Upon motion (Whittaker/Frank), duly adopted, the minutes of the 2017 Joint Annual Meeting were unanimously approved by the membership.
As the first order of business, Mr, Johnson announced all decisions and actions from the 2017 Annual Meeting needed to be ratified and confirmed as there was no quorum at least year’s meeting of the membership. These items included: 1) approval of the 2016 Joint Annual Meeting Minutes; 2) approval of the 2017 Report of the Nominating Committee and slate of officers; and 3) approval of the proposed trust bylaws amendments.
Upon motion (Rogers/Atherton), duly adopted, approval of all decisions and actions of the 2017 PACIF Annual Meeting were ratified and confirmed by the membership.
Jillian Mulcahy reviewed a summary of the 2017 PACIF audit. There was a 12% increase in net position due to increased contributions and investment income and a 2.5% increase in contribution income due to modest rate and exposure increases. $700K was once again returned to members as $500K in contribution credits and $200K for the grant program. The trust’s loss ratio was a bit higher at 77% in 2017 due to an increase in incurred losses. Investment income increased 57.9% in 2017.
Upon motion (Powers/Whittaker), duly adopted, the report of the 2017 PACIF audit was unanimously accepted by the membership.
President Johnson asked other board members present to stand and introduce themselves. Mr. Johnson also pointed out key portions of the VLCT Annual Report that highlighted the PACIF programs and services. Since the trust’s inception, over $18.6 million has been returned to members in the form of contribution credits, which is unavailable in the commercial insurance market. Additionally, since 2010 about $1.8 million has been awarded in grants and scholarships to members.
Joe Damiata recognized David Sichel, Deputy Director of Risk Management Services, who will be retiring at the end of this year with 30 years of service to VLCT. Mr. Sichel was instrumental in the founding of VLCT PACIF back in 1986 while serving on a VLCT committee to find a solution to a difficult insurance market. The result, aided by his efforts, was the formation of VLCT PACIF. Mr. Sichel received a standing ovation from attendees.
Mr. Damiata announced PACIF rates for 2019 will be going down an average of 2.8% overall for 2019, 2.7% for workers compensation and 2.9% for property and casualty. Individual member rates will vary. In addition, $1.5 million will be awarded back to members in the form of contribution credits, and $200K will be available in grants and scholarships. PACIF will also offer specialized Law Enforcement Risk Management Services in 2019 to advise member police departments. Mr. Damiata highlighted all of the additional services and programs available through PACIF continuing for 2019.
Neal Fox presented the Report of the Nominating Committee and slate of officers.
Upon motion (Powers/Frank), duly adopted, the members voted unanimously to accept the Report of the Nominating Committee and the slate of officers as presented with renewed three-year terms for Jackie Higgins, Carl Rogers and Jerry Story.
Upon motion, duly moved and seconded, the members voted unanimously to adjourn the PACIF Trust annual meeting at 1:25 p.m.