DATE: November 19, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator
SUBJECT:
title
Consideration of Resolution 2015-98, a Resolution to Adopt a Pension Plan Investment Policy (11/16/15 Pension Committee 5-0).
body
Purpose
The purpose of this memorsndum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning Resolution 2015-98, which adopts a revised investment policy for the Franklin Employees’ Pension Plan
Background
The City of Franklin previously adopted an investment policy for pension investment assets and has amended this policy from time to time to conform to State and federal laws and regulations.
Recently, Loomis Sayles Investments was selected to oversee investment of certain fixed income assets of the Pension Plan. The investment product of this company was constructed as a collective trust and, under Tennessee law, certain changes were required in the Pension Plan document to allow an investment in that type of ownership vehicle.
In October, the Board of Mayor & Aldermen approved changes to the Pension Plan document in Plan Amendment #3. In order to conform to the Plan document, revisions to the investment policy were recommended by pension counsel and our financial advisor. The changes to the investment policy were drafted by pension counsel and unanimously approved by the Pension Committee on November 16.
Financial Impact
There is no direct financial impact. Funds being placed in the new investment vehicle are currently invested in similar fixed income assets with State Street Global Investors.
Recommendationrec
Staff recommends approval of Resolution.