VLCT Property and Casualty Intermunicipal Fund and Vermont Employment Resource and Benefits Trust, Inc.
Joint Annual Meeting of the Membership
Northstar, Killington Grand Hotel, Killington, Vermont
October 2, 2019
PACIF Directors Present: Carl Rogers, Joshua Powers, Jackie Higgins, Stuart Hurd, Bruce Urie, Brendan Whittaker, John Lawe, Patrick Moreland and David Atherton
VERB Directors Present: Bill Shepeluk, Kathleen Ramsay, Carrie Johnson, Charles Safford, 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 asked for a moment of silence in recognition of the recent passing of VLCT staff person, Theresa Bachand.
President Shepeluk called the VERB annual meeting to order at 1:02 p.m.
Upon motion (Allaire/Hurd), duly adopted, the agenda was unanimously approved by the membership.
Upon motion (Cope/Safford), duly adopted, the minutes of the 2018 Joint Annual Meeting were approved by the membership.
Laura Macuga of Johnson Lambert reviewed a summary of the 2018 VERB Trust audit. Commissions increased 15%, and claims paid increased by 23%. Contributions were down by 18% due to a rate decrease in the Unemployment Insurance (UI) program. $350K was returned to members in UI Program contribution credits. There was a net investment loss of $44K, although the fund remains strong. There were no audit adjustments or uncorrected misstatements.
Upon motion (Safford/Johnson), duly adopted, the report of the 2018 VERB Trust audit was unanimously accepted by the membership.
President Shepeluk recognized other board members present and briefly discussed the trust’s history and noted membership participation in the various programs supported by the Trust. Although the Trust is moving away from health insurance services, it is still partnering with Hickok & Boardman HR Intelligence (HBHRIQ) for support on this issue. He noted that the Health Advocate Program will likely end in the spring due to extremely low membership utilization, however the program will still be available for purchase through HBHRIQ for members if they wish to continue the service.
Joe Damiata provided the staff report to the membership. Mr. Damiata noted there are no rates yet for the UI Program for 2020 as the state is delayed in releasing their taxable wage determination for next year. The Trust went out to bid for the Life & Disability Program this year and elected to stay with the same carrier at a 15% rate reduction for the life insurance and short-term disability lines of coverage starting January 1, 2020. Health insurance continues to be a challenge with double-digit increases for both carriers in the Exchange set for 2020. Association Health Plans will be eliminated for 2020, and Blue Cross has formed a “captive” cell with a coverage option outside of the Exchange. Mr. Damiata encouraged members to see Larry Smith or Kelley Avery if interested in a quote for this new option.
Director Kathleen Ramsay presented the Report of the Nominating Committee and slate of officers.
Upon motion (Hurd/Cope), 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 Carrie Johnson, Todd Odit and Charles Safford.
Upon motion, duly moved and seconded, the members voted unanimously to adjourn the VERB Trust annual meeting at 1:24 p.m.
PACIF President Carl Rogers called the PACIF annual meeting to order at 1:25 p.m.
Upon motion (Whittaker/Higgins), duly adopted, the agenda was unanimously approved by the membership.
Upon motion (Hurd/Higgins), duly adopted, the minutes of the 2018 Joint Annual Meeting were unanimously approved by the membership.
Laura Macuga reviewed a summary of the 2018 PACIF audit. There was a 19% increase in net position due to a decrease in incurred losses, and contributions remained stable with a slight .3% decrease. $700K was once again returned to members as $500K in contribution credits and $200K for the grant program. This was increased to $1.5 million in credits for 2019, with an additional $200K for the grant program. The Trust’s loss ratio was at 46% for 2018, down from 2017 due to a decrease in incurred losses. Investment income decreased $3.8 million in 2018, primarily as a result of unrealized losses in fixed income and equity securities. The Trust maintains a strong financial position.
Upon motion (Allaire/Powers), duly adopted, the report of the 2018 PACIF audit was unanimously accepted by the membership.
President Rogers introduced himself as the newly appointed President and asked other board members present to stand and be recognized. Mr. Rogers pointed out that Director John Lawe will be completing his 30th year of service to the board at the end of this year. Mr. Rogers went on to note key PACIF programs and services and its proven value to members over the years. Since the trust’s inception, over $19.6 million has been returned to members in the form of contribution credits. Aditionally, since 2010 roughly $2.5 million has been awarded in grants and scholarships to members.
Mr. Damiata noted that, due to a coverage change by the reinsurer, there will be a reduction in flood coverage next year which will only impact those members with property in flood zones A and V. Despite this change, members will still have better flood coverage than is available in the commercial marketplace. For cyber liability coverage, certain limits will be higher for 2020. Also, an online portal will soon be available to members where they’ll be able to process endorsements, such as making vehicle changes and adding or deleting coverage on buildings. Mr. Damiata also highlighted all of the additional services and programs that PACIF will continue to provide in 2020 including law enforcement consulting services with Trevor Whipple, HR consulting services with Jill Muhr and the EPL (Employment Practice Liability) Referral Program. Although rates have not yet been set for 2020, the trust hopes to once again provide stable rates and return $1.5 million in contribution credits to members, and in addition provide $200K of funding for the grant program. PACIF also hopes to offer a coverage enhancement in the form of optional auto physical damage coverage for first responders’ personal vehicles while used during the course of their official duty.
Director Jackie Higgins presented the Report of the Nominating Committee and slate of officers.
Upon motion (Safford/Pinsonault), 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 Stuart Hurd, Neal Fox, Patrick Moreland and David Atherton.
Upon motion, duly moved and seconded, the members voted unanimously to adjourn the PACIF Trust annual meeting at 1:44 p.m.