Government of Guam Retirement Fund

The board discussed the status of the Third Party Administrator Request for Proposal, noting the involvement of a Procurement Appeals Hearing Officer from the Office of the Public Auditor. Discussions were held regarding the INVESCO Stable Value Trust liquidation and the twelve-month notice requirement for fund redemption. The board reviewed the status of fiscal year contributions from various agencies and received a report on participant numbers and contribution amounts for the Defined Contribution and Deferred Compensation plans.

The Board of Trustees reviewed and approved various disability, survivor annuity, age retirement, and service retirement benefit applications. The investment committee minutes were approved, and upcoming international equity manager interviews were noted. Discussions included preparations for the upcoming board election, management of past due contributions from government agencies, and the findings of the 2002 financial audit regarding internal controls and plan documentation. The board also addressed concerns regarding medical disability application processes, upcoming travel of staff and legal counsel, and the recent notification of dental plan termination for retirees.

The board meeting focused on several key topics, including a review of correspondence regarding retirement benefits and an executive summary from the Director covering ongoing special proceedings, COLA awardee certificate issues, and various Requests for Proposals (RFPs) related to custodial bank services, real estate investment trusts, equity management, and legal services. Financial status updates were provided for the defined benefit and defined contribution plans. The board also addressed legislative matters, including the status of bills concerning exchange-traded funds and disability retirement medical examination requirements. Additionally, the board approved a settlement resolution, discussed requirements for the retiree advocate's reporting on health insurance negotiations, and held an election of board officers.

The Board discussed various legal and administrative matters, including the impact of open government laws on email communications, custody issues with Capital International, Inc., and pension and benefit plan fiduciary liability for John Rios. Key reports covered pending lawsuits, including William Don Parkinson vs. Government of Guam, and the implementation of a Retirement Fund Cost of Living Allowance. The Board also reviewed proposals for custodial bank services, medical consultant services, and defined contribution investment consultant services. Investment committee reports addressed asset rebalancing, assignment of management contracts, and the search for an investment specialist. Administrative updates included the status of FY2005 audits, parking lot leases, and the processing of retirement applications under recent public laws.

The board discussed a presentation regarding COLA index data and methodology, subsequently adopting the methodology for COLA calculations. The board approved an employment contract for the Director/Chief Executive Officer and directed management to prepare necessary documentation for compliance with the Civil Service Commission and for inclusion in the budget act. Furthermore, the board addressed recommendations from the New Trustees Institute, including the requirement for legal counsel presence and trustee insurance. Finally, the board approved an amendment to Section 401(a)(31)(B) of the Internal Revenue Code to comply with federal law concerning retirement plan distributions, and discussed the status of a request for proposal for a money manager.