State Employee Health Commission

STATE OF MAINE

STATE EMPLOYEE HEALTH COMMISSION

114 State House Station

Augusta, ME 04333-0114

DEFERRED COMPENSATION ADVISORY COUNCIL MEETING

Thursday, November 17, 2015 @ 9:00 am

Room 300, Burton Cross building

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

(Total = 7)

Commission members absent: Eric Bueno, Ricky Welton, Christopher Rogers, Lisa Morgan

(Total = 4)

Buck Consultants: Tom Coughlin (via phone), Alan Vorchheimer (via phone)

VOYA: Shirley Ezzy, Julie Payne, Jennifer George, Greg Miller

Mass Mutual: Pete Ganey, Greg Forte, Carl Hanson, David Hanson (via phone)

Valic: Greg Hyland (via phone)

Employee Health & Benefits: Chris Brawn (via phone), Kurt Caswell, Mary Labbe, Heather Albert

Agenda Item / Discussion / Action/Next Steps
I. Call to Order (9:03 am) / Joyce Oreskovich called the meeting to order
II. Approval of Minutes
(September 17, 2015) / Motion to approve: Seth Blodgett
Seconded by: Rebekah Koroski
Motion passed
III. New Business
a. Brief Review of Strategy for Potential Single Source Provider – Kurt Caswell, Joyce Oreskovich / · Kurt Caswell reminded the Council of the strategy that was previously discussed at the September 2015 meeting (to put out a Request for Proposal or “RFP”)
· The Request for Information step discussed (at September meeting); determined not necessary
· Alan Vorchheimer noted that the purpose of the proposed RFP is consistent with the industry trend, the current structure presents administrative challenges, etc.
· Tom Coughlin reminded the Council that the fund line up has already moved to a more consistent model (among the three providers) however this can be intimidating for employees
b. Vote to Proceed with Request for Proposal / · Kurt Caswell handed out a high level outline which contained:
· Focus on participant education
· Plan sponsor’s fiduciary responsibility is enhanced
· Potential of more favorable pricing
· Administrative ease for the State
· RFP will allow the State to possibly move to a structure that may include 1, 2 or 3 providers
· Kurt Caswell and Buck Consultants will be writing the RFP
· Greg Forte inquired about the impact on old (“legacy”) accounts. Kurt Caswell confirmed that current assets could be moved from the former provider to the new provider(s). Individuals may elect to keep current assets with their previous provider. New deferrals will be placed with provider(s) selected via RFP process. Joyce Oreskovich inquired about the fiduciary responsibility for the legacy accounts.
· Wayne Morrow asked about the few remaining frozen funds and what the current fiduciary responsibility is.
· Shirley Ezzy from VOYA noted the current interest rate in the guaranteed fixed accounts. / Stuart Turney requested to review the RFP and assist as needed.
Kurt Caswell will follow up with the Attorney General’s office to confirm the fiduciary responsibility of the legacy accounts.
Seth Blodgett made the motion to go out to RFP in order to examine the options of moving to a single provider. Tracy Bonnevie seconded. Motion passed.
c. December 2015 Meeting / · Discussed the need for another meeting in December / December 2015 meeting cancelled
IV. Adjourn (9:25am) / Motioned to adjourn: Seth Blodgett
Seconded by: Rebekah Koroski
Motion passed

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