STATE OF MAINE

STATE EMPLOYEE HEALTH COMMISSION

114 State House Station

Augusta, ME 04333-0114

DEFERRED COMPENSATION ADVISORY COUNCIL MEETING

Thursday, December 4, 2014 @ 9:00 am

Champlain Room, Central Maine Commerce Center

Commission members in attendance: Joyce Oreskovich, Tracy Bonnevie, Wayne Morrow, Rebekah Koroski, Lindsey Mattson, Seth Blodgett, Stuart Turney

(Total = 7)

Commission members absent: Bob Studley, Ricky Welton

(Total = 2)

Public: None present

Buck Consultant: Tom Coughlin, Alan Vorchheimer, Larry Reissman

Buck Consultant on the phone: Elizabeth Woodburn

VOYA: Julie Payne, Jennifer George, Greg Miller

Mass Mutual on the phone: Greg Forte

Mass Mutual: David Hanson

Valic: Rick Esten, Greg Libutti, Greg Hyland

Employee Health & Benefits: Kurt Caswell, Mary Labbe, Heather Albert, Joan Hanscom

Agenda Item / Discussion / Action/Next Steps
I. Call to Order (9:05am) / Joyce Oreskovich called the meeting to order.
Introductions. Welcomed Lindsey Mattson. Lindsey is replacing Bob Studley.
II. Approval of Minutes
(September 30, 2014) / Rebekah Koroski motioned to accept the September 30, 2014 meeting minutes. Seconded by Tracy Bonnevie. Motion passed
III. Standard Plan Reporting:
a)  Plan Operation Report (3rd quarter) – Alan Vorchheimer
Elizabeth Woodburn from Buck Consultants gave updated on Mapping: / Information contained in written report. Highlights listed below:
§  51 new enrollees since last quarter
§  Discussed proposed ways to increase enrollment
§  Allow percentage contributions
§  Deduction amounts automatically increases with raises
§  Increased communications to employees of program
§  Adding loan provision – could be problematic with 3 vendors and adhering to IRS guidelines
·  Discussed Fund Mapping changes
·  Outlined member communication process regarding mapping
·  Website has both new and old fund alignment
·  On-line enrollment going forward eff. 1/1/2015
·  Joyce will research having monthly orientation meetings for new employees
a.  Plan Performance Report(3rd Quarter) - Tom Coughlin / Information contained in written report. Highlights listed below:
Plan Level:
·  Funds erosion is still occurring due to decline in overall workforce
·  Overall assets declined .55%
·  3rd quarter volatility due to global slowdown, middle east unrest and rising value of the U.S. dollar is having an impact on the international markets
Watch List Updated:
·  Mass Mutual - Royce Value Plus Svc – Remains on list for performance reason
·  Valic – PIMCO Total Return A –account terminated due to fund manager change
·  Valic – Added PIMCO Real Return A, watch due to fund manager change
·  Valic - America Funds Inf. Co. of America A. fund will be removed in December 2014 due to mapping
·  Turner Mid Cap Growth – removing fund due to mapping due to fund manager change
·  Voya – PIMCO Total Return Admin – terminated due to fund manager change
·  Voya – VOYA TRP Growth Equity I – removing fund due to mapping / Seth Blodgett motioned to add PIMCO Real Return A to watch list, Rebekah Koroski seconded
Kurt requested Tom to update the Style Bar comparison chart on page 30 for the next meeting with a side by side comparison of last quarter over quarter.
b.  Old Business
c.  Kurt Caswell - Update on On-line Enrollment
d.  Tom Coughlin – Funds Consolidation Update / ·  On-Line enrollment proceeding well with FSO’s
·  On target for 1/1/2015 implementation date
·  Notification has gone out to members regarding mapping – minimal response
·  February reporting will include mapped accounts
·  All accounts will be monitored
e.  IV. New Business / ·  11:45 Joyce motioned request to go into Executive Session
·  12:10 Executive Session ended
V. Adjourn Meeting (12:10 p.m.) / Seth Blodgett made a motion to adjourn. Seconded by Wayne Morrow. Motion passed.

1 | Page