San Joaquin County Employees Retirement Association · 2017-06-29 · LLC on executive search...

San Joaquin County EmployeesRetirement Association

A G E N D AREGULAR MEETING

SAN JOAQUIN COUNTY EMPLOYEES RETIREMENT ASSOCIATIONBOARD OF RETIREMENT

FRIDAY, SEPTEMBER 9, 2016AT 9:00 AM

Location: SJCERA Board Room6 S. El Dorado Street, Suite 400, Stockton, California

1.0 ROLL CALL2.0 PLEDGE OF ALLEGIANCE3.0 APPROVAL OF MINUTES

3.01 Approval of the Minutes for the Regular Meeting of August 12, 2016 33.02 Board to approve minutes

4.0 CONSENT ITEMS4.01 Service Retirement (17) 64.02 Deferred Members (6) 94.03 Purchase of Service (10) 104.04 Domestic Relations Order (1) 114.05 Deceased Members Report 124.06 General (1) 13

01 Member Request to Terminate Post-Tax Installment Payments for Redeposit 145.0 EXECUTIVE SEARCH - CEO SUCCESSION

5.01 Agreement for CEO Recruitment Services 1501 Proposed agreement with Alliance Resource Consulting 1602 Board to approve agreement and authorize the Chair to sign the document

5.02 CEO Recruitment Profile 3701 Presentation of Proposed Recruitment Profile and timeline from Ms. Cindy

Krebs of Alliance Resource Consulting38

02 Board to discuss, give direction regarding candidate travel expenses, andapprove Recruitment Profile and timeline

5.03 Clarification of Roles and Responsibilities01 Board to direct staff regarding the goals, roles, process, and communications

by and between the Ad Hoc Transition Committee, the recruiting consultant,the organizational consultant, and the Chief Executive Officer

6 South El Dorado Street, Suite 400 • Stockton, CA 95202(209) 468-2163 • (209) 468-0480 • www.sjcera.org

SJCERA Regular Meeting • 9/9/2016 •

6.0 OVERVIEW OF WORKERS’ COMPENSATION PROGRAM AND DISABILITYRETIREMENT BENEFITS

6.01 Informational presentation by Greg Frank, Management Analyst III, on the goals,standards, and processes for the California Workers’ Compensation Program andthe Disability Retirement Benefits available from SJCERA

42

6.02 Board to give direction to staff as appropriate7.0 STAFF REPORTS

7.01 Trustee and Executive Staff Travel01 Conferences and Events Summary for 2016 6802 Summary of Pending Trustee and Executive Staff Travel 69

a Travel Requiring Approval (1)03 Summary of Completed Trustee and Executive Staff Travel 7004 Board to accept, file reports, and approve 1 pending travel request as required.

7.02 CEO Report01 CEO to provide updates to the Board

8.0 CORRESPONDENCE8.01 Letters Received8.02 Letters Sent8.03 Reports8.04 Newsletters / Bulletins / Articles

01 NCPERS The Monitor August 2016 719.0 COMMENTS

9.01 Comments From the Board of Retirement9.02 Comments From the Public

10.0 CLOSED SESSION - PERSONNEL MATTERSCALIFORNIA GOVERNMENT CODE SECTION 54957EMPLOYEE DISABILITY RETIREMENT APPLICATIONS (3)

11.0 CALENDAR11.01 Financial Meeting, September 23, 2016 at 9:00 AM11.02 Regular Meeting, October 14, 2016 at 9:00 AM

12.0 ADJOURNMENT

SJCERA Regular Meeting • 9/9/2016 •

M I N U T E SREGULAR MEETING

SAN JOAQUIN COUNTY EMPLOYEES RETIREMENT ASSOCIATIONBOARD OF RETIREMENT

FRIDAY, AUGUST 12, 2016AT 9:00 AM

Location: SJCERA Board Room6 S. El Dorado Street, Suite 400, Stockton, California

San Joaquin County EmployeesRetirement Association

1.0 ROLL CALL1.01 MEMBERS PRESENT: Shabbir Khan, J.C. Weydert, Cindy Garman, Michael Duffy,

Chanda Bassett, Adrian Van Houten, Margo Praus, Raymond McCray and MichaelRestuccia presidingMEMBERS ABSENT: Katherine MillerSTAFF PRESENT: Chief Investment Officer Nancy Calkins, Financial Officer LilyCherng, Information Systems Manager Tallie Claypool, Management Analyst III GregFrank, Department Information Systems Specialist II Jordan Regevig, RetirementServices Technician Beatriz Garcia, and Office Secretary Andrea IrelandOTHERS PRESENT: Deputy County Counsel Andrew Eshoo, and Robert Palmer

2.0 PLEDGE OF ALLEGIANCE2.01 Led by Chanda Bassett

3.0 APPROVAL OF MINUTES3.01 Approval of the Minutes for the Regular Meeting of July 8, 2016

01 Board unanimously approved the Minutes of the Regular Meeting of July 8,2016.

4.0 CONSENT ITEMS4.01 Service Retirement (29)4.02 Deferred Members (10)4.03 Purchase of Service (42)4.04 Domestic Relations Orders (1)4.05 Deceased Members Report4.06 Death Benefits (1)4.07 Board unanimously approved the Consent Items.

5.0 REPORT FROM AD HOC TRANSITION COMMITTEE5.01 Committee Chair and/or designee to provide a summary of activities/meeting(s) of the

Committee5.02 Committee recommendation on Executive Search Firm

01 Proposal submitted by Alliance Resource Consulting LLC

6 South El Dorado Street, Suite 400 • Stockton, CA 95202(209) 468-2163 • (209) 468-0480 • www.sjcera.org

SJCERA Regular Meeting • 8/12/2016 • Page 1

02 Presentation by Cindy Krebs, Regional Director of Alliance Resource ConsultingLLC on executive search services for CEO recruitment

03 Motion by Bassett, second by Weydert, Duffy voted “noe”, carried to acceptCommittee’s recommendation to retain Alliance Resource Consulting toconduct the search for a new Chief Executive Officer for SJCERA on behalfof the Board.

5.03 Committee recommendation on contract with Robert Palmer01 Proposed personal services contract02 The Board unanimously approved the personal services contract with

Robert R. Palmer for consulting services to SJCERA.6.0 STAFF REPORTS

6.01 Trustee and Executive Staff Travel01 Conferences and Events Summary for 201602 Summary of Pending Trustee and Executive Staff Travel

a Public Pension Financial Forum 2016 Annual Conference03 Summary of Completed Trustee and Executive Staff Travel04 Board accepted and filed reports and approved 1 pending travel request.

7.0 CORRESPONDENCE7.01 Letters Received7.02 Letters Sent7.03 Reports7.04 Newsletters / Bulletins / Articles

01 NCPERS PERSist Summer 201602 NCPERS The Monitor July 2016

8.0 COMMENTS8.01 Comments From the Board of Retirement

01 Chair Restuccia thanked Mr. Palmer and expressed his appreciation that he hasagreed to serve as a consultant for SJCERA.

8.02 Comments From the Public - None9.0 CLOSED SESSION

PERSONNEL MATTERS CALIFORNIA GOVERNMENT CODE SECTION 54957EMPLOYEE DISABILITY RETIREMENT APPLICATIONS (9)

9.01 Disability Retirement (9)

The Chair convened a Closed Session at 9:16 a.m. The Chair adjourned the ClosedSession and reconvened the Open Session at 9:29 a.m.

Counsel reported that in Closed Session the Board approved on consent anextension of time for seven pending disability applications, and took the followingactions on personnel matters:


01 Park WorkerService & Nonservice-Connected Disability

The Board unanimously granted the applicant a Service-ConnectedDisability Retirement and refer to Human Resources per Government CodeSection 31725.65.

02 Tree Crew SupervisorService-Connected Disability

The Board unanimously granted the applicant a Service-ConnectedDisability Retirement and refer to Human Resources per Government CodeSection 31725.65.

10.0 CALENDAR10.01 Financial Meeting, August 17, 2016 at 9:00 AM10.02 Special Meeting, August 17-18, 2016, Lodi, CA10.03 Regular Meeting, September 9, 2016 at 9:00 AM

11.0 ADJOURNMENT11.01 There being no further business the meeting was adjourned at 10:35 a.m.

Respectfully Submitted:

________________________Michael Restuccia, Chair

Attest:

________________________Raymond McCray, Secretary


San Joaquin County Employees RetirementAssociationSeptember 2016

PUBLIC

4.01 Service Retirement ConsentCHERYL L CAMPOS Deferred Member

N/AMember Type: GeneralYears of Service: 10y 11m 06dRetirement Date: 8/3/2016Comments: Deferred from SJCERA since June 2011.

01

NILO C CANTON Clinical LAB Technologist IIHosp Laboratory Clinic

Member Type: GeneralYears of Service: 14y 07m 11dRetirement Date: 10/1/2016

02

DAVID L COOK Maintenance SuperintendentPublic Works-Road Main-Central


03

PAMELA J DICKSON Senior Office AssistantSheriff - Communications


04

JEFFREY W FREEMAN Non-MemberN/A

Member Type: GeneralYears of Service: 04y 04m 01dRetirement Date: 8/19/2016Comments: General retirement after DRO split account.

05

LORI M FREITAS Personnel Analyst IIHuman Resources


06

ANGELINA G KWARTENG Deferred MemberN/A

Member Type: GeneralYears of Service: 05y 06m 04dRetirement Date: 8/11/2016Comments: Deferred from SJCERA since June 2010.

07

MICHAEL F MAURY Administrative Assistant IPublic Health-Admin Support


08

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PUBLIC

BILLY J MILLER Park WorkerParks - Recreation


09

WANDA M MULLIN Senior Office AssistantPublic Health-Admin Support


10

DIANA G PHELPS Deferred MemberN/A

Member Type: SafetyYears of Service: 05y 07m 14dRetirement Date: 5/26/2016Comments: Deferred from SJCERA since September 1997.

11

VIRGILIO R RONQUILLO Radiologic Technologist IIHosp CT Scanner


12

DARREN E SMITH Non-MemberN/A

Member Type: GeneralYears of Service: 02y 06m 17dRetirement Date: 8/1/2016Comments: General retirement after DRO split account.

13

REBECCA G VARGAS TURNER Senior Office AssistantAssessor

Member Type: GeneralYears of Service: 04y 02m 15dRetirement Date: 8/29/2016Comments: Tier 1

14

REBECCA G VARGAS TURNER Senior Office AssistantAssessor

Member Type: GeneralYears of Service: 02y 05m 01dRetirement Date: 8/29/2016Comments: Tier 2

15

FRANK J VEGA Deferred MemberN/A

Member Type: GeneralYears of Service: 04y 04m 28dRetirement Date: 8/26/2016Comments: Deferred from SJCERA since June 2010.

16

SUSAN D WEBB Deferred MemberN/A

Member Type: GeneralYears of Service: 10y 02m 12dRetirement Date: 8/1/2016Comments: Deferred from SJCERA since March 1996. Outgoing reciprocity and concurrent retirement withCALPERS.

17

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PUBLIC

4.02 Deferred Members ConsentJOHN H DAVIS Deputy Sheriff II

Sheriff - PatrolMember Type: SafetyDeferredDeferral Date: 6/29/2016Years of Service: 15y 2m 23dComments: Established membership with SCERS.

01

KATHRIN J GARDEA Medical Records Technician IIBehavioral Health Admin

Member Type: GeneralDeferredDeferral Date: 7/16/2016Years of Service: 6y 10m 2d

02

NY'ISHA I JACKSON Senior Office AssistantHSA - Clerical Support

Member Type: GeneralDeferredDeferral Date: 4/23/2016Years of Service: 1y 4m 22dComments: Established membership with ACERA.

03

ELENA R REYES Senior Deputy County AdministrCounty Administrator

Member Type: GeneralDeferred - CalPERSDeferral Date: 7/11/2016Years of Service: 15y 10m 16d

04

MARITZA RODRIGUEZ Legal Technician IDistrict Attorney


05

LARA TAPIRO Senior Office AssistantSheriff - Records - Criminal


06

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PUBLIC

4.03 Purchase of Service ConsentCESFE R BANOLA Nurse Practitioner I - Inpatie

Hosp Cardiac Catheter LabMember Type: GeneralYears of Service: 01y 05m 00d Prior County Service

01

CHRISTINE M BLUE PsychiatristMental Health-Adult Outpatient

Member Type: GeneralYears of Service: 05y 00m 00d Active Military/Merchant Marine Service

02

CHRISTINE M BLUE PsychiatristMental Health-Adult Outpatient

Member Type: GeneralYears of Service: 01y 02m 21d Active Military/Merchant Marine Service

03

MARY A DAHL CivilianCrimePreventionCoordSheriff - Patrol

Member Type: GeneralYears of Service: 00y 01m 12d Medical Leave of Absence

04

MARY A DAHL CivilianCrimePreventionCoordSheriff - Patrol


05

NORA E HALSEY Eligibility SupervisorHSA - Eligibility Staff


06

CORAZON A PARIAL Staff Nurse IV - AmbulatoryHosp Standards - Compliance


07

KYRA N SMITH Patient Registration ClerkHosp Op Registration

Member Type: GeneralYears of Service: 00y 07m 05d Prior County Service

08

NISHA M THOMAS Staff Nurse IV - AmbulatoryHosp Case Management


09

SANDRA VIVERO Senior Office AssistantHSA - Clerical Support

Member Type: GeneralYears of Service: 00y 11m 27d Prior County Service

10

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PUBLIC

4.04 Domestic Relations Order ConsentZANETT M DIALS Courts-Legal ProcessClerk III

Court-Court Oper-Traffic CourtMember Type: GeneralDivision of retirement plan benefits prior to retirement; establish non-member account for Darren Smith.

01

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PUBLIC

San Joaquin County Employees' Retirement Association

September 2016

01 DECEASED RETIRED MEMBERS DATE OF DEATH DEPARTMENT

SAMUEL DELANEY 07/29/2016 SJGH

MARY VOCHATZER 07/30/2016 Substance Abuse Services

SUSAN GUERRERO 08/20/2016 Probation

02 DECEASED BENEFICIARIES

RAYMOND McGHEE 08/13/2016

8/26/16 11:55 AM

4.05 Deceased Members Report Consent

Board of Retirement Regular Meeting San Joaquin County Employees’ Retirement Association

Agenda Item 4.06-01 September 9, 2016

SUBJECT: Request for Termination of Post-Tax Installment Service Purchase

SUBMITTED FOR: _X_ CONSENT ___ ACTION ___ INFORMATION

RECOMMENDATION Staff recommends that the Board of Retirement grant the request of John Engaling, Sr. to stop the post-tax bi-weekly payroll deduction for the purchase of service credit due to a financial hardship.

DISCUSSION On April 23, 2016, John Engaling authorized and signed a binding agreement to have $391.33 deducted for 128 biweekly pay periods as his method of payment to purchase prior county service for the period August 16, 2010 to March 6, 2016. The service purchase was presented to the Board at the May 20, 2016 Regular Board meeting. The first deduction was taken on the payday of May 20, 2016.

On August 22, 2016, the member submitted a request to stop that deduction for financial hardship due to unforeseen events.

ATTACHMENT Letter from John Engaling, Sr. dated August 22, 2016

______________________________ ANNETTE ST. URBAIN Chief Executive Officer


Agenda Item 5.01 September 9, 2016 SUBJECT: Alliance Resource Consulting (ARC) proposed agreement SUBMITTED FOR: ___ CONSENT l_X_l ACTION ___ INFORMATION RECOMMENDATION Staff recommends the Board of Retirement approve the executive recruiting services agreement between the Board of Retirement and Alliance Resource Consulting. DISCUSSION At the August 12, 2016 Regular Meeting, the Board retained the recruitment services of Alliance Resource Consulting to conduct a nationwide search on behalf of the Board for the position of Chief Executive Officer of SJCERA. ARC submitted a draft agreement that staff, consultant, and County Counsel, reviewed and provided edits to ARC. ARC has incorporated those edits and the final agreement is before the full Board for consideration at its Regular Meeting of September 9, 2016. ATTACHMENT Alliance Resource Consulting proposed agreement

_________________________ ANNETTE ST. URBAIN Chief Executive Officer

PROFESSIONAL SERVICES AGREEMENT

EXECUTIVE SEARCH SERVICES This Agreement is made by and between the San Joaquin County Employees' Retirement Association (“Client”) and Alliance Resource Consulting (“Consultant”). 1. Search Engagement. The Client agrees to engage the Consultant to perform those services described

below, for completion of the project described as follows: the Chief Executive Officer recruitment (“the Search”).

2. Services. The Consultant agrees to perform certain services necessary for completion of the Search,

which services shall include the following:

a) Position analysis and preparation of recruitment brochure b) Place advertisements in appropriate journals and publications c) Candidate identification and recruitment d) Resume review and screening e) Progress report f) Interviews with and preliminary background checks on leading candidates g) Final report h) Finalize background checks on top one to two candidates i) Assist with interviews and negotiations

3. Relationship. The Consultant is an independent contractor and is not to be considered an agent or employee of the Client.

4. Compensation. As full compensation for the Consultant’s services performed hereunder, the Client

shall pay the Consultant the amount of $34,000 (thirty four thousand dollars) for all professional services and usual expenses related to the Search, including Consultant’s travel expenses for attending three on-site meetings: one to develop the Recruitment Profile, one to present Consultant’s Progress Report, and one to attend the first round of candidate interviews. If additional on-site meetings are required, compensation will increase by $1,500 per meeting. The Consultant’s fee will be split between four invoices. The first invoice will be due after the start of the Recruitment Profile meeting. The Consultant will submit three equal monthly invoices for the remaining fees due. These shall be payable upon receipt.

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5. Compensation for Additional Services. In the event the Client requires services in addition to those described in Paragraph 2, the Consultant shall be compensated at a negotiated rate for professional services, plus reimbursement of reasonable expenses. “Reasonable Expenses” for purposes of this agreement are defined as attached hereto and incorporated by reference as Attachment A. In the event that the Client hires, within one year of completion of this recruitment project, any candidates identified during the Progress Report as a result of Consultant’s recruitment project for any position other than the Chief Executive Officer, the Client agrees to pay Consultant a fee of $5,000 for each additional candidate hired. For purposes of this paragraph, “Candidate” is defined to include any and all individuals about whom information of any sort was provided by Consultant in writing to the Client in the course of this recruitment project. The parties hereto agree that the obligations set forth in this paragraph shall survive the termination of this Agreement.

6. Guarantee. If the candidate selected as a result of the Search conducted by Consultant, (excluding

internal Client candidates) is terminated within one year from the date of hire, the Consultant will re-do the search for no additional professional fee. The Consultant will be reimbursed for any reasonable expenses incurred.

7. Records Retention. Copies of all hard copy documents associated with the recruitment will be

retained for three years from the anniversary date of the hiring of the candidate. Retention of records beyond three years must be requested in writing before the conclusion of the recruitment. Records stored beyond three years will be maintained in an off-site secure storage facility at a cost of $50 per box per year. Additional costs associated with access, retrieval, delivery, organizing, photocopying, etc. shall be billed as a separate invoice at a rate of $50 per hour.

8. Method of Payment. Progress payment of the Consultant’s professional services fee and reasonable

expenses shall be made by the Client upon receipt of billings from the Consultant, as outlined in our proposal attached hereto and incorporated by reference as Attachment B.

9. Term. The term of this Agreement shall commence on August 15, 2016, at which time the Consultant

shall begin work on the Search and shall continue, subject to the termination provisions of Paragraph 10, until the date that the Consultant completes the Search. The time of completion of the Search is estimated to be 100 days from the date of the meeting to develop the Recruitment Profile.

10. Termination. This Agreement may be terminated: (a) by either party at any time for failure of the

other party to comply with the terms and conditions of this Agreement; (b) by either party upon 10 days prior written notice to the other party; or (c) upon mutual written agreement of both parties. In the event of termination, the Consultant shall stop work immediately and shall be entitled to compensation for professional service fees and for expense reimbursement to the date of termination; and the Consultant shall provide to the Client all work product completed or in progress at such date and communicate such recommendations and conclusions to the Client as may have been formed by such date. If a cancellation occurs within the first 30 days of the assignment, following either verbal or written authorization to proceed, one-third of the professional fee will be due. If a cancellation occurs thereafter, the fee beyond the first one-third will be prorated based upon the number of calendar days which have elapsed. If a cancellation occurs after 90 days, all professional fees will be due in full.

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11. Insurance. The Consultant shall maintain in force during the term of the Agreement, General

Liability Insurance including Personal Injury; Professional Liability; Automobile Liability Insurance (Non-Owned and Hired Liability); and Workers’ Compensation Insurance.

12. Client Responsibilities. The Client shall inform Consultant about matters relevant to the search that Client wishes to keep confidential (e.g., salary, personnel issues, and other privileged information); provide names of people previously interviewed/considered for this position; forward copies of resumes received; provide feedback to Consultant regarding the information and recommendations provided by Consultant; communicate internal decisions/deadlines that impact the recruitment process and/or the delivery of work product; promptly decide upon and follow up in scheduling interviews with the most promising candidates; and assist in providing information to candidates that will enable them to make their career decisions.

13. Candidate Travel. Candidates are responsible for travel related expenses to the Client interviews unless such expenses are authorized by the Client. Client travel policies shall be provided to the Consultant at the initial start meeting.

14. Miscellaneous.

a) The entire agreement between the parties with respect to the subject matter hereunder is contained in this Agreement.

b) Neither this Agreement nor any rights or obligations hereunder shall be assigned or delegated by

the Consultant without the prior written consent of the Client. c) This Agreement shall be modified only by a written Agreement duly executed by the Client and

the Consultant. d) Should any of the provisions hereunder be found to be invalid, void or voidable by a court, the

remaining provisions shall remain in full force and effect. e) This Agreement shall be governed by and construed in accordance with the laws of the State of

California. f) All notices required or permitted under this Agreement shall be deemed to have been given if

and when deposited in the United States mail, properly stamped and addressed to the party for whom intended at such party’s address listed below, or when delivered personally to such party. A party may change its address for notice hereunder by giving written notice to the other party.

SIGNATURES ON FOLLOWING PAGE

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APPROVED: Dated: August 31, 2016 Alliance Resource Consulting LLC By Title Founding Partner Address: 400 Oceangate, Suite 480 Long Beach, CA 90802 Dated: , 2016 San Joaquin County Employees' Retirement

Association By Title Address: 6 South El Dorado Street, Suite 400 Stockton, CA 95202

HEADQUARTERS OFFICE 400 OCEANGATE, SUITE 480

LONG BEACH, CALIFORNIA 90802Tel: (562) 901-0769 ● Fax: (562) 901-3082

PALO ALTO OFFICE 228 HAMILTON AVENUE, 3RD FLOOR

PALO ALTO, CALIFORNIA 94301 Tel: (650) 296-1032 ● Fax: (650) 584-3449

!

From time to time, our clients request an explanation of expenses that are charged to each recruitment and billed to the respective clients for reimbursement to Alliance. These reimbursable expenses are referenced and covered in Alliance’s agreement for services with each client.

The expense categories are as follows: 1. Accounting – Alliance has retained an independent accounting service to perform such

services for each recruitment; these charges are allocated to each job on a month to monthbasis and supported by invoices; cost estimate for each recruitment is generally $200unless a client requests more detail accounting support or have unusual questions andrequirements;

2. Advertising – All such costs are supported by our vendor invoices; specialized vendors orpublications are utilized; cost estimate for each recruitment is $1,000 to $2,000 dependingon the recruitment position; coverage is of significance;

3. Airfare – Alliance’s consultants provide supporting documents for travel and specific clientsto charge for these costs; cost estimate for each recruitment depends on location;approximate cost per search is $500 to $1,000;

4. Auto – All costs associated with each recruitment including auto rental, parking, gas,parking, mileage, etc; costs have supporting documents; cost estimates generally are in the$500 range;

5. Background/Article Checks – Generally performed by outside specialized vendors whoperform this service; all costs have supporting documents; these costs are not included inAlliance’s professional fees due to the use of independent qualified vendors; cost estimatesrange in the $750 to $1,500 range; depends on the number of final candidates that requiresuch services;

6. Lodging – All costs are supported by invoices; cost estimate ranges from $500 to $1,500;depending on the search;

7. Meals – All costs are supported by invoices; Cost estimate is $50;8. Other Expenses – Generally office supplies or costs that are allocated to recruitments; all

costs are supported by invoices; cost estimate is $250 to $400;9. Postage/Courier – Generally postage, FedEx charges; all costs are supported by invoices;

cost estimate is approximately in the range of $200;10. Recruitment Profile – All costs associated with the production and printing of the

recruitment profiles; all costs are supported by invoices; cost estimate is in the range of$1,000 to $2,000;

11. Research/Candidate Sourcing – All costs associated with the effort to obtain qualifiedcandidates for each recruitment; this is not included in our “professional fees” area asqualified/specialized services are retained to assist Alliance; this also includes consultants’travel, candidate screening interviews and any additional unique marketing research effortas required by the recruiting engagement; all costs are supported by invoices. Costestimate is in the range of $1,000 to $2,000; depends on the individual searchrequirements;

12. Telephone/Internet – All costs associated with each recruitment; allocations are supported by invoices from vendors; cost estimate is $300.

Upon request, Alliance will provide supporting documents for invoices to our clients for any billing for such “reimbursable costs”.

Website: www.allianceRC.com ● E-mail: [email protected] http://twitter.com/Alliancerc

Facebook-Alliance Resource Consulting LLC

ATTACHMENT A

http://www.allianceRC.com

mailto:[email protected]

http://twitter.com/Alliancerc

San Joaquin County Employees’ Retirement Association

Executive Recruitment Search

Copyright 2016 ALLIANCE RESOURCE CONSULTING LLCAll rights reserved.

CHIEF EXECUTIVE OFFICER

ATTACHMENT B




July 22, 2016

VIA ELECTRONIC MAIL

Mr. Greg FrankManagement Analyst IIISan Joaquin County Employees’ Retirement Association6 South El Dorado StreetSuite 400Stockton, CA 95202

Dear Mr. Frank:

Alliance Resource Consulting is pleased to submit this proposal to assist the San Joaquin County Employees’ Retirement Association in its efforts to recruit and screen candidates for the Chief Executive Officer position. Enclosed is our proposal which outlines how we would partner with your organization to recruit the best individuals. It describes the steps we will take to accomplish the recruitment within your desired timeframe. If you desire some modification of the proposed work program, we would be pleased to discuss that with you.

Alliance Resource Consulting’s corporate motto is “The Power of Partnership.” We take this seriously and have built our reputation on providing services of the highest quality. Alliance Resource Consulting was formed in 2004 when our executive search consultants acquired the highly regarded executive search practice of one of the largest public sector consulting/government services companies in the United States. With the innovative use of technology and a commitment to forming enduring partnerships with our clients, Alliance Resource Consulting is committed to setting a new standard for the industry.

We do not have any potential conflicts of interest from past recruitments or relationships. We will be happy to answer any additional questions you may have. We look forward with great interest to working with you on this very important assignment.

Sincerely,

Sherrill Uyeda Cindy Krebs Founding Partner Regional Director

SOUTHERN CALIFORNIA OFFICE400 Oceangate, Suite 480

LOng Beach, ca 90802teL: (562) 901-0769 • Fax: (562) 901-3082

www.allianceRC.com • [email protected]

NORTHERN CALIFORNIA OFFICE228 hamiLtOn avenue, 3rd FLOOr

PaLO aLtO, caLiFOrnia 94301teL: (650) 296-1032 • Fax: (650) 521-0024

ATTACHMENT B




TABLE OF CONTENTS1 Our Understanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 FirmQualifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2 Our Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3 Advantages of Our Firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 RecruitmentMethodology&Approach . . . . . . . . . . . . . . . . . 33.1 Strategy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.2 Active Recruitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.3 Candidate Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43.4 Progress Report Meeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.5 Preliminary Interviews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.6 Client Interviews & Interview Books . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.7 Special Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

4 OurClient’sRole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

5 ProjectedTimeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

6 AllianceAdvantages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.1 Technology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76.2 Stakeholder Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86.3 Salary Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86.4 Weekly Client Updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

7 RecruitmentCosts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

8 AllianceSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

9 Contactinformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Appendix–A:PensionandInvestmentsSearches . . . . . . . . . . 11

Appendix–B:Biographies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Appendix–C:References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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1–OURUNDERSTANDINGIt is our understanding that the San Joaquin County Employees’ Retirement Association (SJCERA) wishes to engage an executive search firm to assist in the Chief Executive Officer recruitment.

The SJCERA Board of Retirement oversees the Chief Executive Officer and staff in the performance of their duties in accordance with the 1937 Act, County Employees’ Retirement Law, SJCERA’s by-laws and policies set by the Board.

2–FIRMQUALIFICATIONS2.1 Project TeamIn 2004, Alliance Resource Consulting acquired the national executive recruiting practice of MAXIMUS. We are committed to providing our clients with the highest caliber of service in the industry. Our team of dedicated professionals utilizes custom-built state-of-the-art technology in conducting a search.

We are based out of Long Beach, California. We also have offices in Palo Alto, California; Tallahassee, Florida and Seattle, Washington.

Our current staffing is:

Sherrill Uyeda – Founding PartnerCindy Krebs - Regional Director, Pacific NorthwestDavid McDonald – Regional Director, East CoastSyldy Tom – ManagerRichard Kaplan – Research ConsultantGeoff Gambling – Research ConsultantLinda Kann – Special Projects and Graphics Manager

Cindy Krebs and Sherrill Uyeda will work on this recruitment. Biographies can be found in Appendix B and references can be found in Appendix C.

2.2 Our ExperienceWe believe we are exceptionally well qualified to assist you. We have extensive nationwide experience recruiting pension executives for government agencies and special districts and have helped to place excellent people in both small and large organizations.

AllianceResourceConsultingpridesitselfon

itscommitmenttocustomerservicetoboththeclient

andthecandidates.

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Retirement system recruitments are one of our strengths. We are currently recruiting the following retirement system positions:

• Deputy Chief Executive Officer - Contra Costa County Employees’ Retirement Association (CA)• Assistant Retirement Administrator - Fresno County Employees’ Retirement Association (CA)• Assistant Executive Director - Kern County Employees’ Retirement Association (CA)• Retirement Plan Administrator - Merced County Employees’ Retirement Association (CA)

Within the past 18 months, we helped to fill a number of similar positions, including:

• Chief Executive Officer - Alameda County Employees’ Retirement Association (CA)• Retirement Administrator - City of Fresno Employees Retirement System (CA)• Chief Retirement Counsel - Sonoma County Employees’ Retirement Association (CA)Division Manager, Member

Services, for the Los Angeles County Employees Retirement Association (CA)• Retirement Administrator - Imperial County Employees’ Retirement System (CA)• Retirement Administrator - Fresno County Employees’ Retirement Association (CA)• Retirement Administrator - Mendocino County Employees Retirement Association (CA)• Chief Legal Counsel - Los Angeles County Employees Retirement Association (CA)• Chief Executive Officer - Contra Costa County Employees’ Retirement Association (CA)• Chief Executive Officer - Santa Barbara County Employees Retirement System (CA)

In addition, we have completed the following recruitments:

• Assistant Director, Retirement Services and Chief Investment Officer - City of San Jose, CA (2014)• Executive Director - Kern County Employees’ Retirement Association, CA (2013)• Retirement Administrator - Sonoma County Employees’ Retirement Association, CA (2013)• Director of Retirement Services - City of San Jose, CA (2012)• Retirement Administrator - Fresno County Employees’ Retirement Association, CA (2011)• Deputy Retirement Chief Executive Officer - Contra Costa County Employees’ Retirement Association, CA (2011)• Assistant Retirement Administrator - Marin County Employees’ Retirement Association, CA (2011)• Retirement Administrator - Marin County Employees’ Retirement Association, CA (2010)• Investment Officer - Kern County Employees’ Retirement Association, CA (2010)

Our ability to carry out the work required by your agency is enhanced by our past experience in providing similar services to others, and we expect to continue such work in the future. It should be noted that all of the recruitments listed above were completed on time and within budget.

We will preserve the confidential nature of any information received from you or developed during our work on this recruitment in accordance with our established professional standards.

We assure you that we will devote our best efforts to carrying out the work required. The results obtained, our recommendations and any written material we provide will be our best judgment based on the information available to us.

2.3 Advantages of Our FirmRelative to your present search requirements, we believe the principal advantages in using Alliance Resource Consulting which differentiate us from other firms are:

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• Our track record of success in placing superior senior level executives in particularly sensitive and highly responsible/accountable positions.

• Our specialization in public sector executive search on a nationwide basis.• Our extensive experience recruiting pension executives for government agencies and special districts.• Our PROACTIVE recruitment of candidates who may not be seeking new employment and would not normally

respond to routine advertising and highly qualif ied candidates who might be overlooked by traditional recruiting approaches.

• Our ability to develop and meet a recruitment timeline to fit your needs.• The fact that we assign two professionals to each recruitment to ensure we are always available to quickly

respond to your most pressing requirements. • The quality of our work and the fact that most of our clients have retained our services on more than one

engagement.• Our proven ability to identify and recommend qualified female and minority candidates.• The transparency of our recruitment process. We will provide you a client login to our recruiting system so

you can see how things are progressing at any time. We will also prepare weekly updates for you throughout the peak of the recruiting process.

• Our reputation among clients and candidates for timely communication and documentation (e.g., acknowledgement of receipt of candidate application, client status reports, candidate interviews, client meetings and candidate feedback).

• The thoroughness of our documented reference, internet and background checks. We request very specific references from candidates and supplement our reports with information gathered from available information sources such as LexisNexis and public records. Our ability to enhance the recruitment process through stakeholder outreach, the use of online surveys, and targeted research.

• The fact that all of our graphics work is done in-house, saving our clients time and money. • Our promise to conduct the recruitment at the cost proposed. We have never charged a client more than our

proposed amount.

3–RECRUITMENTMETHODOLOGY&APPROACHAlliance Resource Consulting believes that we are an extension of your organization. As such, we work within your expectations and guidelines. Our objective is to find the best qualified candidates. While notices in professional journals may be helpful, many of the best candidates must be sought out and their interest encouraged. Our general familiarity with the organization, knowledge of the field and our relationships with professional organizations make us well qualified to assist you.

Our clients have found that we are able to:

• Develop the appropriate specifications for a position.• Encourage the interest of top-level people who would be reluctant to respond to advertisements.• Preserve the confidentiality of inquiries, consistent with State public disclosure and open meeting laws.• Save a considerable amount of time for client staff in developing and responding to candidates.• Protect the confidentiality of the information discussed with or received from the client.• Build consensus among those involved in the hiring process. • Independently and objectively assess the qualifications and suitability of candidates for the particular position for

which we are recruiting.• Adhere to client’s budget and schedule expectations.

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If you desire to retain us for a full and thorough recruitment process, we will do the following for your recruitment:

3.1 Strategy DevelopmentWe will interview members of the Search Committee and other client contacts to obtain a detailed understanding of the position, key goals and challenges, and organizational culture. We will also discuss expectations regarding desirable training, experience and personal characteristics of candidates. In addition, should you request it, we will conduct/facilitate community outreach meetings and focus group discussions.

We also have experience creating and managing community surveys, should the organization want input from its constituents. We will also gather/review relevant information about the organization, such as budgets, organization and/or department goals, organization charts, etc.

Once our findings have been summarized, we will submit a Recruitment Profile with the desired qualifications and characteristics to you for approval. The Recruitment Profile that will be sent to potential candidates will include information about the organization, the job and the criteria established by you.

3.2 Active RecruitmentOnce you have approved the Recruitment Profile, we will actively seek out individuals who meet your expectations. To achieve the best response, we will take a three-prong approach to attracting candidates:

1. Direct Contact – We will mail invitations and recruitment profiles to targeted individuals in comparable organizations at the appropriate level. These invitations will be followed up with direct phone calls to potential candidates to gauge interest.

2. Internal “Job Alert” – Over the past eleven years, we have developed an active database of over 20,000 candidates who are active in various public sector positions. We will send a new “job alert” to all our registered users in the Alliance Resource Consulting candidate application program. Prospective candidates will be contacted via e-mail with a link to the PDF version of the Recruitment Profile.

3. Advertisements – We will place job advertisements in the appropriate professional journals and on-line sites.

As a matter of corporate policy, we do not discriminate against any applicant for employment on the basis of race, religion, creed, age, color, marital status, sex, sexual preference, disabilities, medical condition, veteran status or national origin. A substantial percentage of the placements made by our firm have been minority or female candidates.

Frequent communication with our clients is a hallmark of our firm. While consultants will provide regular updates on the progress of your search, you will also be able to access up-to-date ‘real time’ information regarding your search from our secure website.

3.3 Candidate EvaluationWe will review, acknowledge and evaluate all resumes received. Candidate evaluation will begin with an analysis based upon criteria contained in the Recruitment Profile, information contained in the resumes submitted to us, and our knowledge of the people and organizations for which they work.

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The next phase in candidate evaluation will focus on gaining additional information from the qualified group of candidates through written supplemental information questionnaires and other resources. Telephone interviews will be conducted with the most promising candidates to gain a better understanding of their backgrounds, qualifications and interest in the position.

3.4 Progress Report MeetingAfter the resume deadline, we will submit to you a progress report of the leading candidates. This report will include summary resumes, supplemental information, and the original resumes of those candidates we believe to be best qualified for the position. Supplemental information on a candidate typically includes: the size of the organization for which the person works, reporting relationships, budget responsibility, the number of people supervised, related experience and reasons for interest in the position. Any other specific information will be dictated by the criteria set forth in the Recruitment Profile.

The purpose of our progress report is two-fold. It allows you an opportunity to review the candidates and choose those who you would like to invite to be interviewed for the position. It also allows us to receive feedback on the caliber of the candidates recruited. In addition, at this point we will have conducted preliminary background checks on each of the presented candidates. Of course, we are flexible and may consider other individuals as final candidates who are subsequently identified and were not included in the progress report.

3.5 Preliminary InterviewsWe will interview (either in person or via video-conference) those candidates identified by you to be the leading candidates. We will conduct a preliminary interview with questions that focus on the selection criteria. Additionally, we will verify degrees and certifications and continue to gather information about the candidate’s professional backgrounds.

3.6 Client Interviews & Interview BooksWe will assist you in scheduling final candidates for interview with your organization, and will send the candidates packets of information which we obtain from you should you request it (e.g., information about the organization and the geographic area, budgets, etc.).

We will prepare final interview books for the selection panel. These books will include interviewing/selection tips, suggested interview questions, and rating forms for your use. Candidates will not be ranked, for we believe it will then be a matter of chemistry between you and the candidates.

We will also be on-site for the interview day(s). We will brief the interview panel at the start of the interviews and will facilitate the process throughout the day. After the last candidate interview, we will assist you in “debriefing” the interview panel members.

As part of our process in evaluating candidates, we make telephone reference checks. In conducting these references, it is our practice to speak directly with individuals who are, or have been, in a position to evaluate the candidate’s performance on the job. To gain a well-rounded impression of the candidates, we speak with current and prior supervisors, peers and subordinates. These references and our evaluations provide you with a frank, objective appraisal of the candidates. Once we finalize references on the top one or two candidates and conduct credit/criminal/civil litigation/motor vehicle record checks through an outside service, we will provide you with a detailed candidate evaluation report.

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3.7 Special AssistanceOur efforts do not conclude with presentation of the final report. We are committed to you until a successful placement is made. Services that are routinely provided include:

• Arranging the schedule of interviews and the associated logistics for final candidates.• Advising on starting salary, fringe benefits, relocation trends and employment packages.• Acting as a liaison between client and candidate in discussing offers and counter offers.• Conducting a final round of reference checking with current employers (if not previously done for reasons of

confidentiality).• Notifying those candidates who were not recommended for interview of the decision. Following up with the client

and the selected candidate once he/she has joined the organization to ensure a smooth transition.

4–OURCLIENT’SROLEThe client has a very important role in the recruitment process. While we may identify and recommend qualified candidates, it is the client who must make the decision about which candidate to hire.

In order to insure that the best candidates are available from which to choose, our clients should be willing to do the following:

• Clearly inform us about matters relevant to the search that you wish to keep confidential (e.g., salary, personnel issues, and other privileged information).

• Supply us with the names of people you have previously interviewed/ considered for this position.• Forward us copies of the resumes you receive, to avoid duplication of effort.• Provide feedback to Alliance Resource Consulting regarding the information and recommendations provided by us.• Promptly decide upon and follow up in scheduling interviews with the most promising candidates.• Assist in providing information to candidates that will enable them to make their career decisions.• Uphold confidentiality (while respecting relevant state laws about open disclosure) to protect the integrity of the

recruitment process, as well as the candidate’s involvement.

By doing the above, we will maximize the likelihood of mutual success.

Finally, please be reminded that the United States Immigration Reform and Control Act of 1986 requires that all employers verify an employee’s eligibility to work in the United States. Since Alliance Resource Consulting cannot serve as your agent in this matter, your hiring process should include this verification procedure.

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5–PROJECTEDTIMELINEThe following is a typical schedule to conduct a thorough recruitment. However, we would be pleased to modify this to meet your needs:

1st Week Meet with the appropriate individuals to gather background information.

2nd - 3rd Week

Develop and obtain approval for the Recruitment Profile.

Develop a list of potential candidates to target.

Prepare and place advertisements, if desired.

4th-9thWeek Active recruitment––solicit, receive and acknowledge resumes.

10thWeek Evaluate resumes and gather supplemental information. Submit progress report and meet with you to review leading candidates.

11thWeek Verify degrees and certifications and interview the best qualified candidates.

12th-14thWeek Submit final report and initiate the interview process with you.

FollowingInterviews Conduct references, credit/criminal/civil litigation/motor vehicle record checks, and assist with negotiations.

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Strategic Development 7

Active Recruitment 35

Candidate Evaluation 14

Progress Report

Preliminary Interviews 10

Client Interviews

Negotiations 17

6–ALLIANCEADVANTAGES6.1 TechnologyAlliance Resource Consulting is the only firm to utilize a custom-built “online” client/candidate management system. This custom system allows candidates to input their resumes and cover letters on our website. (For candidates who wish to email or mail us a hard copy of their resume, we will input the information for them.) One of the benefits of our system is that it enables our client contact to check the latest applicant list in real-time.

One of our strengths is our use of social media to best market the recruitment. We have active accounts on LinkedIn, Twitter and Facebook. The use of social media allows us to contact our network and “followers” to alert them to our recruitment announcements, informational updates and reminders. It allows us to stay one step ahead of our competitors.

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Alliance Resource Consulting is always searching for new ways technology can help us save our client’s money. One way we do this is by using Skype to interview out of town candidates. Our innovative ways have set us apart from our more traditional competitors.

6.2 Stakeholder OutreachOur firm has used several methods, including stakeholder meetings, community forums and surveys, for stakeholder outreach in a number of previous recruitments. For example, for the previous City of San José City Manager recruitment, our consultants facilitated 13 community outreach meetings where citizens were invited to attend and express their opinions about what they were looking for in city manager candidates. For the City of Alexandria’s City Manager recruitment, we also met with special interest groups such as business leaders, Chamber of Commerce members and historic preservation groups.

During the recruitment of the City Administrator for the City of Huntington Beach (CA), the consultants met with each councilperson, each department head, conducted an open citizen forum and a forum for a group of stakeholders comprised of two citizens recommended by each councilperson. For the City Manager recruitment conducted for the City of Moreno Valley (CA), the consultants conducted a community panel as well. Our previous experience in stakeholder outreach makes our firm very qualified to conduct the meetings with the Mayor’s Office and City Council Members as well as facilitate multiple stakeholder outreach forums throughout the City that your request for proposal outlined.

Lastly, our firm has significant experience in creating community surveys should you wish to provide this option to your community. We have utilized surveys for many of our recruitments and can prepared them in different languages, if required. The surveys can be accessed on-line, or at our office and our client’s office.

6.3 Diversity OutreachStriving for diversity in our recruitments is a hallmark of our firm. We use a variety of sources for outreach to various minority communities to ensure the desired diversity of our candidate pool. In addition to our personal contacts in various minority communities, we advertise our positions in publications that target minorities in government and further publicize the position through minority organizations such as Blacks in Government and the International Hispanic Network. To ensure a diverse pool, we also create a recruiting list of qualified candidates from communities that have a comparable level of diversity as our client’s community.

We have created lists for comparable diversity during recruitments for the City Manager for the City of Compton (CA), the City of Tigard (OR), the Assistant City Manager/Chief Operating Officer for the City of Ventura (CA), and the Assistant City Manager for the City of Irvine, CA. The final pool for the City of Irvine included three women among the six finalists. We also collect Equal Employment Opportunity (EEO) information on our candidate pool. This information is accessible to our clients in real time on our company website.

6.4 Weekly Client UpdatesOur consultants provide our client contacts written recruitment updates on a weekly basis. These updates include work done that was completed during the week and what we expect to work on the following week.

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7–RECRUITMENTCOSTSWe propose a fixed fee of $34,000 for the work outlined above, which includes up to three on-site meetings: one to develop the Recruitment Profile, one to present our Progress Report, and one to attend the first round of candidate interviews. If additional on-site meetings are required, a budget increase of $1,500 per meeting will be added to the professional fee. Please note that this amount does not include reimbursement of candidates who travel to be interviewed by you. Unless you notify us to the contrary, we will assume that you will handle these reimbursements directly.

Our fee will be split among four equal invoices. All invoices are due and payable upon receipt. We do NOT base our fees on a percentage of the position’s salary.

Our billing schedule on a retained fee (and based not on an hourly rate) is as follows:

1st Billing Due after Start Meeting First Phase $8,500

2nd Billing Due upon our submittal of a draft recruitment profile Second Phase $8,500

3rd Billing Due after we meet and submit our Progress Report to you Third Phase $8,500

4thBilling Due after the client conducts interviews with finalists Fourth Phase $8,500

Please note that this is a standard billing schedule and can be modified as requested.

You may discontinue this assignment at any time by written notification. In the unlikely event that this occurs, you will be billed for all expenses incurred to the date of the cancellation, and for professional fees based upon the time elapsed from the commencement of the assignment to the date of cancellation. If a cancellation occurs within the first 30 days of the assignment, following either verbal or written authorization to proceed, one-third of the professional fee will be due. If a cancellation occurs thereafter, the fee beyond the first one-third will be prorated based upon the number of calendar days which have elapsed. If a cancellation occurs after 90 days, all professional fees will be due in full.

GuaranteeWe are committed to working with you until a placement is made. However, if the selected candidate (recommended by us for hire, and excluding internal candidates) should be terminated within one year from the date of hire, we will re-do the search for no additional professional fee. Naturally, we would expect to be reimbursed for any expenses that might be incurred.

In the event that the Client hires, within one year of completion of this recruitment project, any candidates identified during the Progress Report as a result of Consultant’s recruitment project for any position other than the Chief Executive Officer, the Client agrees to pay Consultant a fee (based upon 50 percent of the recruitment’s professional fee) for each additional candidate hired.

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8–ALLIANCESUMMARYThank you for reviewing our proposal. Should you decide to retain Alliance Resource Consulting for your executive search needs, we will do the following:

• Partner with you and act as an extension of your organization.• Define a recruitment strategy and timeline, develop a recruitment profile and attract/research prospective candidates.• Conduct a multi-layered candidate screening analysis on the applicants.• Communicate frequently and on-time with both the client and candidates.• Allow client contacts to access the recruitment database in real time from remote sites.

Our firm’s motto is “the Power of Partnership” and we are committed to adding value to your organization’s goals and mission. We bring an ethical, transparent and well-documented recruitment process to all our clients.

9–CONTACTINFORMATIONCindy Krebs Office:

Fax:Cell Phone:

E-mail:Skype:

(562) 901-0769 x336(562) 901-3082(949) [email protected]_arc

Sherrill Uyeda Office:Fax:

Cell Phone:E-mail:Skype:

(562) 901-0769 x331(562) 901-3082(310) [email protected]

ALLIANCE RESOURCE CONSULTING LLCHEADQUARTERS400 Oceangate, Suite 480Long Beach, CA 90802

TALLAHASSEE, FLORIDA

SEATTLE, WASHINGTON

www.allianceRC.com

twitter.com/AllianceRC

Alliance Resource Consulting LLC

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APPENDIX–APension and Investment Searches of Alliance Resource Consulting

Alameda County Employees’ Retirement Association (CA) Chief Executive OfficerArizona State Public Safety Personnel Retirement System AdministratorCity of Fresno Retirement Systems Retirement AdministratorContra Costa County Employees’ Retirement Association Chief Executive OfficerContra Costa County Employees’ Retirement Association Deputy Retirement Chief Executive OfficerFresno County Employees’ Retirement Association Retirement AdministratorIllinois Teachers’ Retirement System Chief Executive OfficerKern County Employees’ Retirement Association Executive DirectorKern County Employees’ Retirement Association Investment OfficerLong Beach, CA, City of TreasurerLos Angeles County Employees Retirement Association Chief Legal CounselMarin County Employees’ Retirement Association Assistant Retirement AdministratorMarin County Employees’ Retirement Association Retirement AdministratorMendocino County Employees Retirement Association Retirement AdministratorSan Jose, CA, City of Chief Investment Officer/ Assistant Director of Retirement ServicesSan Jose, CA, City of Director of Retirement Services (CEO)San Jose, CA, City of Retirement Investment OfficerSanta Barbara County Employees’ Retirement System Chief Executive OfficerSanta Barbara County Employees’ Retirement System Chief Investment OfficerSonoma County Employees’ Retirement Association Retirement AdministratorVentura, CA, City of Treasury Manager

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APPENDIX–BBIOGRAPHIESCindyKrebs–RegionalDirectorCindy Krebs joined Alliance Resource Consulting in 2012 after serving more than 25 years as a high level manager and principal consultant for local governments, regional agencies and special districts. The experience she gained while working in the public sector gives Ms. Krebs a unique understanding of the complexities associated with public service careers as well as a strong appreciation for people who choose to dedicate themselves to improving the communities they serve. Ms. Krebs is highly adept at working with executive management teams, Board members, and community/special interest group and has managed several high profile recruitments for Alliance.

Ms. Krebs graduated from Baker University with Bachelor of Art degrees in both Communications and Spanish. She is also a graduate of CORO’s Orange County Leadership program. Ms. Krebs is fluent in Spanish and proficient in French and Italian.

SherrillA.Uyeda–FoundingPartnerSherrill Uyeda has over fifteen years of public sector executive search experience. She began her career in executive search in 1998 with Norman Roberts & Associates, Inc. From 1999 to 2004, Ms. Uyeda was an executive search consultant with MAXIMUS, a leading government consulting firm which assists state, federal and local governments. In 2004, along with Eric J. Middleton, she founded Alliance Resource Consulting LLC.

Since 2007, Ms. Uyeda has been instrumental in expanding the organization’s presence to include regional offices in Palo Alto (CA), Tampa (FL) and Seattle (WA). She fosters an environment of frequent communication to both clients and candidates and transparent and ethical recruitments on a timely basis. Her leadership and collaborative skills have led to an impressive hiring and retention rate.

Ms. Uyeda’s track record of recruiting high-profile government executives across the nation in various industries include: city and county management, transportation, utilities, human resources, library services, building and planning, economic development and pension and retirement systems. Past clients for nationwide recruitments have included the City/County of San Francisco (CA), the County of Los Angeles (CA), Arlington County (VA), Broward County (FL), the City of Atlanta (GA), the City of Alexandria (VA), the City of Boston (MA), the City of Dallas (TX), and the City of San José (CA). Past retirement systems, she has recruited for are: Contra Costa County Employees Retirement Association, Fresno County Employees Retirement Association, Kern County Employees Retirement Association, Marin County Employees Retirement Association, Santa Barbara County Employees Retirement System, and Sonoma County Employees Retirement Association.

Additional areas of expertise include: facilitating community forums and outreach meetings, conducting multi-lingual citizen surveys and compensation and benefits negotiations.

Ms. Uyeda graduated from the University of Southern California, with both a Bachelor of Arts degree in Communication Arts and Sciences and a Master of Public Administration degree. She is a member of the Society for Human Resources Management.

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APPENDIX–CREFERENCES

SantaBarbaraCountyEmployees’RetirementSystemName: Alan BlakeboroTitle: AttorneyPhone #: (805) 966-2440

ImperialCountyEmployees’RetirementSystemName: Norma Jauregui Title: Board MemberPhone #: (760) 960-2258

ContraCostaCountyEmployees’RetirementAssociationName: Brian HastTitle: Chairperson of the Board of RetirementPhone #: (925) 521-3960

ATTACHMENT B


Agenda Item 5.02 September 9, 2016 SUBJECT: Alliance Resource Consulting (ARC) Recruitment Profile SUBMITTED FOR: ___ CONSENT l_X_l ACTION ___ INFORMATION RECOMMENDATION The Ad Hoc Transition Committee unanimously recommends the Board of Retirement approve Alliance Resource Consulting’s Recruitment Profile to be used in a nationwide search on behalf of the Board for the position of Chief Executive Officer of SJCERA. PURPOSE To initiate ARC’s active recruitment of the Chief Executive Officer position. DISCUSSION ARC individually interviewed the Board members to obtain a detailed understanding of the position, key goals and challenges, and organizational culture. ARC also discussed the expectations regarding desirable training, experience and personal characteristics of candidates. After summarizing their findings, ARC submitted a draft Recruitment Profile, via email, to each Ad Hoc Committee member and SJCERA staff. The attached Recruitment Profile from ARC contains the feedback from the Committee. Cindy Krebs, Regional Director of Alliance Resource Consulting, will be present at the September 9, 2016, Regular Board Meeting to discuss the Recruitment Profile with the full Board. ATTACHMENT Alliance Resource Consulting Recruitment Profile

_________________________ ANNETTE ST. URBAIN Chief Executive Officer, on behalf of the Ad Hoc Transition Committee

CHIEF EXECUTIVE OFFICERSan Joaquin County Employees’ Retirement Association

(Stockton, CA)

THE COMMUNITYNestled in California’s Central Valley, San Joaquin County offers tremendous opportunities to the residents and businesses that call it home. San Joaquin’s eight communities of Mountain House, Tracy, Lathrop, Manteca, Ripon, Escalon, Stockton, and Lodi provide quality affordable housing along with numerous recreational opportunities and state-of-the-art K-12 schools and higher education institutions. The County also boasts a sophisticated transportation network comprised of an international deep water port, major interstate highways, air and rail services as well as delta recreation and waterways, farm fresh food and a highly skilled and diverse workforce.

Comprising 1,426 square miles, San Joaquin is home to approximately 712,000 residents and 296,000 jobs. The County seat is in Stockton — one of the largest cities in the State of California with a population of approximately 310,000 and a growing economic base. Located within driving distance of the California Coast, San Francisco, Lake Tahoe, and Yosemite National Park, San Joaquin County is culturally and ethnically diverse and offers an abundance of recreational and cultural activities.

For additional information, visit the County’s webpage at https://www.sjgov.org.

THE ORGANIZATIONSJCERA was established by the San Joaquin County Board of Supervisors in 1946 and is governed by the California State Constitution and the County Employees Retirement Law of 1937. SJCERA is a multi-employer public employee retirement system that provides retirement, disability, and survivors’ benefits to eligible employees of San Joaquin County and special district employers. SJCERA also administers retiree eligibility and enrollment for group health, dental, and vision plans offered by San Joaquin County.

The ten-member SJCERA Board of Retirement provides oversight to the Chief Executive Officer and staff in the performance of their duties pursuant to applicable law and the bylaws and policies set by the Board. Visit www.sjcera.org to learn more.

THE POSITION Under general direction from the Retirement Board, the Chief Executive Officer plans, organizes and directs the activities of SJCERA, ensuring that the policy and regulations of the Association are consistent with the provisions of the 1937 Act. Key responsibilities include:

• Providing strategic direction and leadership

• Offering solid advice and counsel to the Retirement Board

• Analyzing and developing policies

• Guiding fiscal and actuarial activities

• Overseeing investment and portfolio management

• Directing SJCERA operational activities



• Monitoring investment and actuarial risks

• Establishing and maintaining systems and processes to ensure regulatory and legal compliance

• Leading staff, delegating work, and creating a high performing team

• Representing SJCERA effectively in a variety of forums

• Providing excellent customer service to the Association’s members

Additional details are available via San Joaquin County’s Department of Human Resources, https://www.sjgov.org/hr/. Search for “Retirement Administrator” in the Job Descriptions section.

THE IDEAL CANDIDATESJCERA’s Chief Executive Officer will be an inclusive and inspirational leader who creates a positive work environment built on respect and mutual trust; focuses on customer service to provide timely, accurate customer service; and empowers, mentors and trains staff to support operational efficiency and career development. This person will have excellent oral and written communications skills and will be adaptable and flexible as well as results-oriented. He/She will be a highly motivated problem solver who remains calm under pressure and responds to difficult or sensitive situations with tact and diplomacy. Finally, this individual will be politically aware, able to broker consensus to advance organizational goals, and interested in making a long-term commitment to the organization.

Knowledge and Skills

The successful candidate will have knowledge of and competence with the purpose, principles, practices, standards, laws, procedures and challenges of public defined benefit retirement systems. He/She will also be well acquainted with fiscal and actuarial management and investments and portfolio management. This person will have a general knowledge of accounting principles and statistical analysis. In addition, the Chief Executive Officer will be adept at organizational planning, goal setting, employee selection, employee supervision and will have experience with modern business computer and software use as well as automated office technology.

Education and Experience

Graduation from an accredited college or university with a major in public administration, accounting, business administration, finance or a closely relate field.

Five (5) years of increasingly responsible administrative experience in public or private defined benefit programs, or a similarly complex fiscal/operational environment, including at least two years of direct supervisory responsibility.

CHALLENGES & OPPORTUNITIES• Ensuring retirement benefits for members and beneficiaries are fully funded

• Implementing a well-diversified investment portfolio aligned with the Retirement Board’s risk tolerance; reducing shortfall risk

• Addressing employer and active member concerns about increased retirement contributions

• Keeping all Board members informed about emerging issues and recommending policies or responses that are in the best interest of the Association

• Procuring and implementing new financial and pension modules

• Evaluating and addressing Intelligent Technology and security needs



• Supporting Retirement Board interest to change the reporting relationship of the Assistant Chief Executive Officer and Chief Investment Officer

• Conducting an organizational analysis to redefine roles and reassign work as necessary

• Delegating work to staff; fairly evaluating work performance; addressing performance issues

• Improving operational efficiency

COMPENSATIONThe annual salary range for this position is $152,838.40 to $185,764.40. I addition, the County provides a competitive Executive Management benefit package which includes:

HEALTH BENEFITS - A cafeteria plan in the annual amount of $24,023 may be used to purchase medical, dental and vision plans coverage. Unused monies are included in salary.

RETIREMENT – 1937 Act defined benefit retirement plan with reciprocity with CalPERS

CAR ALLOWANCE - $7,200 annually

VACATION – 15 days of vacation leave per year (20 days after 10 years, 23 days after 20 years)

HOLIDAYS – 14 paid holidays per year

SICK LEAVE - 12 days of sick leave per year with unlimited accumulation

ADMINISTRATIVE LEAVE - 80 hours per year

DEFERRED COMPENSATION - CEO receives a 5% employer contribution annually

SECTION 125 Plan (Flexible Spending Account) - Employees may participate on a pre-tax basis for employee and dependent medical care reimbursement expenses.

RELOCATION ASSISTANCE - Reimbursement of qualifying moving expenses up to $5,000

HOW TO APPLYPlease apply on-line by October 14, 2016, at www.allianceRC.com. For questions and inquiries, please contact Cindy Krebs or Sherrill Uyeda.

ALLIANCE RESOURCE CONSULTING LLC400 Oceangate, Suite 480Long Beach, CA 90802

Telephone: (562) 901-0769E-mail: [email protected] [email protected]

http://twitter.com/Alliancerc

Alliance Resource Consulting LLC

An Equal Opportunity/ADA Employer

California Workers’ Compensation (WC) and SJCERA’s Disability Retirement Benefits

September 9, 2016

1

What Will Be Discussed •  California Workers’ Compensation

–  Purpose of Workers’ Compensation (WC) –  Work Related Injuries –  WC Process –  WC Benefits

•  SJCERA’s Disability Retirement Allowance –  Defined –  Types of Disability Retirements –  Disability Retirement Allowances –  Supplemental Disability

•  Summary of Differences

2

Purpose of Workers’ Compensation

•  If any employee gets hurt on the job, the employer is required by law to compensate employee for lost wages

•  A no-fault system and can provide employers with exclusive remedy against some litigation. However, there are certain exclusions.

•  Tristar is the County’s third party administrator

3

Work Related Injury •  The injury or illness must arise out of or in the

course of employment •  Examples (on-the-job)

–  Cumulative trauma injury caused by repetitive keyboarding

–  A broken arm from falling off ladder –  Lower back strain from lifting a box or prolonged seating –  Hearing loss due to ongoing exposure to excessive noise

levels –  Business trips or mandatory attendance at company

sponsored events

4

Not Related Work Injury •  Injuries & illness usually not considered

work related – Post termination or after notice of lay-off

(claims are still processed to allow for investigation)

– Ordinary commute to and from work (going and coming rule), but some claims do get accepted

–  Injuries caused by intoxication or drugs

5

Workers’ Comp Process Steps immediately following employee injury/illness and getting emergency care if needed:

•  Claim paperwork sent to HR’s Risk Management Office

•  Risk Management staff forwards packet to Tristar •  Employee is entitled to $10,000 limit of medical

treatment while claim is being investigated

6

WC Process - Claims •  Within 14 days, Tristar should send one

of three notices – Accepts claim, employee receives benefits

and services – Denies claim – Delays claim for further investigation, can

take up to 90 days

7

WC Process – Claims (Cont.)

•  If a claim is delayed: – No benefits other than medical treatment

will be provided – May be able to collect SDI during

investigation period –  If no final notice received within 90 days,

claim presumed accepted

8

WC Benefits

•  WC benefits include: – Medical care – Temporary Disability Benefits (TD) – Permanent Disability Benefits (PD) – Supplemental Job Displacement Benefits – Death Benefits

9

WC Benefits (Cont.) •  Medical Care

-  Paid by employer to help recover from injury/illness caused by work including doctor visits, tests, & medicines

•  Temporary Disability Benefits (TD) -  Payments if lost wages because the injury prevents

employee from performing usual job while recovering

-  1st payment due 14 days after employer learns of injury AND treating doctor says injury prevents doing job

-  Two types: temporary total disability (TTD); temporary partial disability (TPD)

10

WC Benefits (Cont.) •  Temporary Total Disability (TTD)

–  Employee is paid 2/3 of gross wages while recovering from job

–  Exempt from income taxes, union dues, or retirement contributions

–  Only paid while recovering –  Maximum limit for 2016: gross wage of $1,692.65

per week, TTD payment of $1,128.43 per week –  Minimum payment for 2016: TTD of $169.26 per

week

11

WC Benefits (Cont.)

•  Temporary Partial Disability (TPD) –  Employer may offer reduced work schedule or

different type of work and if results in earning less, the TPD benefit is 2/3 of lost wages

–  Benefit paid if employer cannot accommodate work restrictions and as a result the employee remains off work

12

13

WC Benefits – Work Modification What type of work can employee perform while recovering: •  Employee’s primary treating physician is responsible for

explaining in a medical report: –  What kind of work employee can/can’t do while recovering

–  What changes are needed in employee’s work schedule or assignments

•  Treating physician, employee, employer, should review job description and discuss changes needed in job

•  For every visit to WC physician, employee should be provided a work status that specifies what the employee can or cannot do. It is then up to employer to determine whether the employee can return to work based on physician’s note.

WC Benefits (Cont.) •  Permanent Disability (PD) Benefits

-  Payments if employee does not recover completely and the injury causes a permanent loss of physical or mental function

-  When employee has reached maximum medical improvement (MMI), treating physician writes a Permanent & Stationary (P&S) report that includes: -  Specific medical problems -  Work restrictions -  Future medical care that may be needed -  Whether able to return to old job -  Estimate of how much disability is caused by job, per

guidelines published by the American Medical Association

14

WC Benefits (Cont.) •  PD RATING FORMULA – a percentage that

estimates how much the disability limits the kinds of work that can be done or ability to earn a living –  Formula based on several factors:

•  Medical condition as described in P&S Report •  Date of injury •  Age when injured •  Occupation •  How much disability is caused by job, “apportionment” •  Rating of 100% means permanent total disability (very rare); normal

ratings between 5-30%, a permanent partial disability

15

WC Benefits - PD Payments •  Permanent partial disability - total lump sum benefit

may be spread over a fixed number of weeks •  Permanent total disability - received over lifetime •  PD Payment Exceptions

–  If employer offers work that pays at least 85% of wages prior to injury, or

–  Working on a job that pays at least 100% of wages prior to injury, then

–  Will not receive PD payments until after workers’ compensation judge reviews

16

WC Benefits - Types of Settlements

•  Stipulations with Request for Award –  Settles the extent and level of Permanent

Disability and leaves open future medical care provision

•  Compromise and Release –  Settles the entire aspect of the claim – Permanent

Disability, Temporary Disability, and future medical care

17

WC Benefits - Other •  Supplemental Job Displacement Benefits

-  A voucher to help pay for retraining or skill enhancement -  Voucher must be used at a state approved school -  Amount of voucher – fixed amount of $6,000

•  Death Benefits -  Payments to spouse, children, or other dependents if you

die from a job injury or illness -  Lump sum burial expense, actual not to exceed $10,000

-  Lump sum or monthly installments, lifetime maximum: 1 dependent $250,000; 2 dependents $290,000; 3 or more $320,000 (until minor child reaches age 18)

18

Fun Facts •  Average cost of WC claim: $87,000 •  When do employees get hurt:

48% during first two years •  Will they ever return?

19

Duration of Benefits Chance of Returning to Work 4 Weeks 90% 6 Months 50% 12+ Months 5%

SJCERA’s Disability Retirement Program

•  If an SJCERA member (FT permanent) proves on the basis of medical evidence that the member has a permanent incapacity that precludes the member from performing normal and usual job duties, the member may be granted a lifetime disability retirement allowance by the Board of Retirement

20

Two Types of Disability Retirements

•  Service-Connected (SCDR) – When a member is permanently incapacitated

due to a job related illness or injury •  Nonservice-Connected (NSCDR)

– When a member’s permanent incapacitated illness or injury is not related to their employment (at least 5 years of continuous retirement service credit)

21

Physician’s Report •  The physician’s report (at member’s expense) must

include:

22

1) History of injury/illness 9) Medical treatment indicated 2) Medical complaints 10) Likelihood of permanent disability

3) Past medical history 11) Opinion if injury related to employment

4) Family medical history 12) Opinion if due to alcohol/drugs

5) Source of all facts 13) Opinion if preclude from performing any employment in County

6) Findings on examination 14) Reasons for these opinions

7) Opinion as to substantially incapacitated to perform duties

15) Affidavit form or signed by physician

8) Cause of incapacity

Disability Retirement Allowance

•  SERVICE CONNECTED - Minimum of 50% of final compensation

•  NON-SERVICE – Based on age and years of service; generally provides 1/3 of final compensation

•  If member is eligible to receive a service retirement allowance and that amount would be greater than the SCDR or NSCDR, member would receive the greater service retirement allowance

23

Supplemental Disability •  If capable of performing other duties, may

accept another position in County •  If salary of new job is less than old job,

receive supplemental disability, not retired •  Supplemental disability cannot be greater

than disability allowance retirement member would have received without reemployment in another position

24

Summary •  Some primary differences between

California’s Workers’ Compensation and SJCERA’s Disability Retirement

25

CA Workers’ Comp SJCERA Disability Employee Member Temporary/Permanent Permanent Partial/Total Substantially incapacitated Replace as portion of lost wages

Lifetime allowance, percent of final compensation

Resources

•  California Department of Industrial Relations – Division of Workers’ Compensation www.dir.ca.gov/dwc

•  SJCERA’s Disability Retirement Program booklet

26

Printed 8/29/16 10:05 AM

REG. WEBLINKBEGIN END FEE FOR MORE INFO

Sep 21 Sep 23 Administrators' Institute CALAPRS Loews Coronado Island, CA $2,500 calaprs.org

Sep 22 Sep 22 Pacific Institutional Real Estate Investor Forum

Markets Group San Francisco, CA N/A marketsgroup.org

Sep 30 Sep 30 Trustees Roundtable CALAPRS Burbank, CA $100 calaprs.org

Oct 17 Oct 19 CRCEA Fall Conference CRCEA Walnut Creek, CA $45 crcea.org

Oct 23 Oct 26 2016 Annual Conference Public Pension Financial Forum

Charleston, SC $475 p2f2.org

Oct 27 Oct 28 Public Pensions and Investments Fiduciaries' Forum

Nossaman San Francisco, CA $275 nossaman.com

Nov 8 Nov 10 Invesco Real Estate US Client Conference

Invesco La Jolla, CA N/A invesco.com

Nov 8 Nov 11 SACRS Fall Conference SACRS Indian Wells, CA $120 sacrs.org

REG. WEBLINKBEGIN END FEE FOR MORE INFO

Jan 25 Jan 27 2017 Visions, Insights & Perspectives Institutional Real Estate Inc. Carlsbad, CA N/A irei.com

Mar 4 Mar 7 CALAPRS General Assembly CALAPRS Monterey, CA $100 calaprs.org

2016 CONFERENCES AND EVENTS SCHEDULE 2016

2017 CONFERENCES AND EVENTS SCHEDULE 2017

EVENT DATES 2017 EVENT TITLE EVENT SPONSOR LOCATION

EVENT DATES 2016 EVENT TITLE EVENT SPONSOR LOCATION

Printed 8/30/16 1:49 PM

2016 Estimated BOR ApprovalEvent Dates Sponsor / Event Description Location Traveler(s) Cost Date

Sep 6 - 8 IREI Editorial Board Meeting Carlsbad, CA Garman $800 Pending

Sep 21 - 23 CALAPRS Administrators' Institute Loews Coronado Island, CA

St. Urbain $1,900 N/A

Oct 23 - 26 Public Pension Financial Forum 2016 Annual Conference Charleston, SC Cherng $3,000 August 12, 2016

SAN JOAQUIN COUNTY EMPLOYEES' RETIREMENT ASSOCIATION

SUMMARY OF PENDING TRUSTEE AND EXECUTIVE STAFF TRAVEL

Printed 8/29/16 10:40 AM

Event Estimated Actual Event ReportDates Sponsor / Event Description Location Traveler(s) Cost Cost Filed2016

Jan 18 - 21 New and existing manager due diligence meetings

Boston, MA; New York, NY

St. Urbain (Sancewich, PCA) $2,620 $1,840

2/26/2016 (PCA Reports on 3

DD Mtgs - Item 7.03)

Jan 27 - 29 2016 VIP Conference Carlsbad, CA St. Urbain, Calkins $5,500 $2,901 2/29/16

Mar 5 - 8 CALAPRS General Assembly Indian Wells, CA

Garman, Miller, Van Houten, Weydert,

Eshoo, Pabst, Calkins

$12,000 $8,796 N/A

Apr 5 - 6 Pension Bridge Annual Conference San Francisco, CA McCray, Calkins $2,000 $1,080 4/15/16

Apr 5 - 6 Miller Global Annual Investor Meeting San Antonio, TX Weydert, St. Urbain $3,800 $2,358 Submitted for 6/9/2016 RE Comm Meeting

Apr 12 - 14 IREI Editorial Board Meeting Ojai, CA Garman $1,750 $395 4/18/16

May 10 - 13 SACRS Spring Conference Costa Mesa, CA Garman, Eshoo, Calkins $8,735 $4,550 N/A

May 16 - 18 CALAPRS Management Academy: Module 2 Pasadena, CA St. Urbain $1,500 $411 N/A

May 22 - 25 GFOA Annual Conference Toronto, Ontario Cherng $2,500 $1,890 6/28/16

Jul 17 - 20 SACRS Public Pension Investment Management Program Berkeley, CA Bassett $4,125 $3,881 N/A

Jul 18 - 21 FileMaker Developer Conference Las Vegas, NV Claypool $4,025 $3,516 Pending

Aug 9 - 12 CALAPRS Principles of Pension Management for Trustees at Pepperdine Malibu, CA

Miller, St. Urbain

(as Program Faculty)$5,065 TBD N/A

Sep 6 - 8 IREI Editorial Board Meeting Carlsbad, CA Garman $800 TBD Pending

SAN JOAQUIN COUNTY EMPLOYEES' RETIREMENT ASSOCIATION

SUMMARY OF COMPLETED TRUSTEE AND EXECUTIVE STAFF TRAVEL

N AT I O N A L C O N F E R E N C E O N P U B L I C E M P L O Y E E R E T I R E M E N T S Y S T E M S

The term “pension funding gap”has taken on a life of its ownin recent years, as complex

mathematical calculations byactuaries have improbably morphedinto a political football. Critics ofpublic pensions seem to be competingto come up with scarier estimates ofthe gap between future benefits owedto pension beneficiaries versus thefunds available here and now to coverthem.

Reliable U.S. governmentinformation shows a gap of less than$1 trillion, with approximately 30years to fill it with revenue. Onaverage, state governments dedicate4.1% of their revenues to pensions,and only five states have a fundinggap below 50%. But facts haven’tstopped conservative organizationsfrom bandying about an estimatedgap of $3.4 trillion – a grosslyinflated figure based on the ludicrousassumption that pensions will eke outthe 30-year Treasury bill rate over thenext three decades. And most analysisconveniently leaves out the fact thatmany states and municipalitiescreated the existing shortfall byacting like deadbeat dads – skippingout on their financial commitments ornot making required full paymentwhen the going got rough during thefinancial crisis, if not before.Pennsylvania, for example, went 15

Pension Funding Forum Can Help Officials Separate Fact from Fiction

��

years without meeting its obligationsin full. Who can be surprised that ashortfall developed?

We at NCPERs work constantly toseparate fact from fiction when itcomes to public pension funding. Werealize, of course, that anxiety cancrowd out reason. Political pressureto determine how to cover futureobligations is constantly rising, andcannot be ignored. At the same time,we are deeply concerned aboutlegislative measures such asincreasing employee contributions,reducing benefits and convertingdefined benefits plans into definedcontribution plans, because they haveserious long-term implications for oursociety. Our research has shown thatincreased income inequality andeconomic volatility are some of theprices we pay.

The gamut of funding issues will bein the spotlight of the NCPERSPublic Pension Funding Forum,scheduled for August 21-23, 2016, atthe Omni New Haven Hotel at YaleUniversity in New Haven, Conn.Now in its third year, the forum has become a critical, must-attendevent for trustees, administrators, andother public pension stakeholdersbecause it is one place you can turn for dispassionate analysis andexceptional industry knowledge.

I hope you will make time to attend.

One of the highlights of this year’sconference will be our luncheonspeaker on the closing day, Tuesday,August 23. Our guest will be RobertJ. Shiller, Sterling Professor ofEconomics at Yale University, and a2013 Nobel Prize laureate ineconomics for his empirical analysisof the irrational growth of assetprices. Shiller sees the need todemocratize and humanize financeas a recurring theme of his works,from 2001’s “Irrational Exuberance”and to last year’s “Phishing forPhools: The Economics ofManipulation and Deception.” Hehas underscored in his work thetransition from defined-benefit plansto defined-contribution plans that gotunder way around 1980, and hasvoiced concern that do-it-yourselfasset management not only setsmany people up for failure becausethey lack the expertise to investadequately for their own retirement,but also causes formation andbursting of asset price bubbles.

Another headline topic – investmentreturns and the assumptionsunderlying the discount rate—willbe explored in depth. This issue hasbeen in the news frequently, most

continued on page 2

FEDERAL news

2 • N C P E R S , T h e Vo i c e f o r P u b l i c P e n s i o n s ! A u g u s t 2 0 1 6

recently with The Wall Street Journalreporting July 26 that 20-yearannualized returns for publicpensions in the U.S. have fallen to7.47% in fiscal year 2016, “thelowest-ever annual mark recorded”by Wilshire Trust UniverseComparison Service. Never mindthat Wilshire only began tracking thestatistic in 2000, in the midst of astock market boom, or that mostpension plans are meeting theirreturn-on-investment assumptions,both year-over-year and over the longhaul.

The Public Pension Funding Forumis unique in its emphasis on researchand expert analysis. Our goal for thisprogram is to inject new thinking thatmight solve the challenges andpreserve and enhance public pensionplans. Session topics includeadvocacy, risk management, andinvestment strategies. This is the bestplace to get up to speed right now onsome of the most pressing issuesfacing public pensions. To registerfor the forum, visitwww.ncpers.org/fundingforum.

Beyond Brexit: Britain, Europeand the Pension Wealth ofNations:

The World Pensions Council’s M.Nicolas J. Firzli warns the UK totread slowly following Brexit, asone-nation Tories will try to get a‘better deal’ first William ButlerYeats wrote ‘Aedh Wishes for theCloths of Heaven’ in 1899, to mark

what he thought would be thebeginning of a new era in Europeanculture and civilisation: ‘Tread softlybecause you tread on my dreams’says the poet. By voting to leave theEuropean Union on 23 June, Britainhas shocked the EU establishmentand treaded abruptly on the delicatedreams of pensive EU-utopiansacross the continent. On 29 June, theleaders of the union’s 27 remainingmember states gathered in Brussels tostage theatrically their ‘concertedriposte’, insisting ‘Britain make aquick exit’ by activating‘immediately’ Article 50 of theLisbon Treaty, formally starting thetwo-year period leading towithdrawal.

Of course, it will be in England’snational interest not to move fast inthe coming months: London needs toobtain first written reassurances onthe ‘free movement of goods, capital,services’ from the part of Brusselsbefore invoking Article 50. And thelonger the UK waits, well the morepolitical pressure on the Anglophobefaction led by Martin Schulz, a failedSocialist publisher from the RhineProvince (Marx’s home state) turnedPresident of the EU Parliament andJean-Claude Juncker, the ridiculouslyrigid President of the EUCommission. Britain must use thisdeliberate delaying tactics to hammerthe message that free trade with theUK should be construed as totallyseparate from ‘the free circulation ofpeople’ and the forced ‘contributionto the EU budget’ (a stealth tariff). Inthis long struggle, Britain will havemany allies amongst Dutch, Danish,Swedish and Central European

Funding Forum continued from page 1 member states (except Poland) whoall resent Germany’s heavy-handedness.

Who knows? By temporisingindefinitely to defend its economicinterests, the new UK governmentmay well change the course ofEuropean history and finally forcethe EU establishment itself to reformthe rigid Maastricht/Lisbonconstitutional framework, thus givingmore leeway to Britain and othereconomically-dynamic Northern andCentral European nations andallowing a more nimble union tofocus on the free trade of goods andservices without undue bureaucraticburdens, modern antitrust law andstronger external borders, leaving therest to member states (the far moreefficient ‘European Community’model, conceived by WinstonChurchill and Jean Monnet, theAnglophile ‘chief architect ofEuropean Unity’).

Asset ownership and the realbalance of power favourable toBritain Freed from the ever-tightening grip of EU directives thatare corroding English common lawand burying British companies underpiles of poorly planned regulations,the UK economy will be free topursue a more dynamic growthtrajectory, unleashing the fullpotential of British workers andentrepreneurs. The UK will also havethe opportunity to deepen itslongstanding, privileged economicties with rapidly growingjurisdictions such as Australia,

continued on page 3

http://www.ncpers.org/fundingforum

N C P E R S , T h e Vo i c e f o r P u b l i c P e n s i o n s ! A u g u s t 2 0 1 6 • 3

FEDERAL news

Canada, India, Singapore and HongKong (all growing much faster thanthe EU average – see chart), withoutbeing hindered by Brussels or Berlin.

In our model [see chart], the averageannual growth rate is shown on theX-axis. The ‘Decorrelation fromEUCore’ index, shown on the Y-Axis,is a composite economic, monetaryand legal/regulatory indicator

summarising the overall macro-political distance from ‘Core-EUstates’, defined as Germany, France,Italy, Belgium and Luxembourg (theoriginal members of the 1958European Coal and Steel Community,with the exception of theNetherlands). For all practicalpurposes, the ‘EUCore’ issynonymous with all WesternEuropean Eurozone countriesincluding Spain and Portugal –

except Ireland, Malta, theNetherlands and Denmark (whosecurrency is pegged to the euro).

Our research shows that a trade warwith London is clearly in no one’sinterest in Europe, and Britain mayhave a stronger hand than it seems infuture negotiations. The total marketcapitalisation of UK companies is

Beyond Brexit continued from page 2

continued on page 4

Economic Dynamism and National Pension Wealth:‘EU Core’ vs. Other OECD Countries

FEDERAL news


larger than the combined market capsof the Frankfurt and Paris bourses, and,more importantly, assets owned by UKpension funds are more than 11 timesbigger than those of all German andFrench pension funds put together [seechart – the relative size of a country’spension assets is indicated by the sizeof its national flag].

Put simply, Britain is by far the numberone client of most Mainland Europeaninvestment bankers, asset managersand insurers (not to mention Germancar and French wine exporters): if needbe, at the first hint of threat to the Cityof London, Her Majesty’s Governmentshould be in a position to respond veryforcefully, bringing Brussels to reasonrather rapidly…

Proposed Amendments toBankruptcy Code

In the winter of 2011, the U.S. Househeld hearings on a proposal to extendthe Chapter 9 federal bankruptcyprotections to states. Municipalitiesare allowed to enter into debtrestructuring under Chapter 9, ifauthorized by state law, but states arenot afforded these protections.

One of the key arguments for theproposal was that states were

overburdened by promises, statutoryin nature and some protected by stateconstitutional guarantees, to payretirement benefits to state and localworkers. The proposal landed with athud. Bipartisan sentiment inCongress was that states, as co-sovereigns with the federalgovernment, should not be affordedthese protections. While not desirableoutcomes, states could raise taxes,issue bonds or cut other spending toget out from under its debt. Further,extending debt restructuring to stateswould have serious implications forthe bond markets.

Fast forwarding to 2016 we now see amore narrow approach beingadvanced by the Manhattan Institute,an ultra-conservative think tank.Using the troubled Illinois publicpension system as justification, theproposal would create a new section113 of the U.S. Bankruptcy Code –Proceeding to Protect Essential StateActions. How would this work?

States would be allowed to publish aproposal to make changes to pensionbenefits that, in the state’s view, arenecessary and/or appropriate to ensurethe undiminished and unimpairedperformance of any essential stateaction by the state or any subdivision,agency or municipality thereof. Oneor more public hearings would berequired and any such proposal wouldhave to be approved by the statelegislature and signed by the governorin the same manner as general statutesof that state. Such legislation (theproposal to change benefits) wouldthen be filed as a petition in a U.S.Bankruptcy Court.

It’s critical to understand what stateor local legal protections of benefitswould be cast aside by this newbankruptcy provision. The proposalstates that, pension benefits may bemodified to ensure the performanceof essential state actions,notwithstanding any prohibitionagainst or limitations on changes topension benefits contained in anystate constitution, statute, law,regulation, judicial decision, contractor other local legal document,decision or rule.

To understand the broad sweep of thisproposal, it’s important to look at twokey definitions:

m Essential State Action – anyundertaking by the state infurtherance of (a) providing forthe health, safety or welfare ofpersons residing within the state;(b) addressing, remedying orpreventing fiscal emergencies ofthe state or any subdivision,agency or municipality thereof;or (c) ensuring the ability of thestate and its subdivisions,agencies and municipalities tofund essential governmentalservices on reasonable terms.

m Pension Benefits – any accruedor prospective, vested orunvested, pension, health or otheremployee or retiree benefit,which a state or any subdivision,agency or municipality thereof,funds or is required to fund.

The proponents of the proposal citethe authority for section 113 as the

Beyond Brexit continued from page 2

continued on page 8

Written by M. Nicolas J. Firzli is director-general of the World Pensions Forum(WPF) and advisory board member for theWorld Bank Global Infrastructure Facility

August 21–23, 2016Omni New Haven Hotel at Yale University

New Haven, CT

2016PUBLIC PENSION

FUNDING FORUM

REGISTRATION OPENVisit http://www.ncpers.org/fundingforum or

call 1-877-202-5706 for more information

http://www.ncpers.org/fundingforum

Hank H. Kim, Esq.Executive Director

& CounselExecutive Director's Corner

Significant attacks on publicpensions were averted duringthe first half of 2016, but

challenges lie ahead. That was themessage of NCPERS semiannual stateand federal update webcast on July 19.

NCPERS executive director and chiefcounsel Hank H. Kim on July 19moderated the discussion, whichfeatured Bailey Childers, executivedirector of the National PublicPension Coalition, and Tony Roda, apartner in the Washington, D.C., lawfirm of William & Jensen. In keepingwith the established format of thewebcast, they began by reviewing thefirst half of 2016, looked ahead to thesecond half, and fielded questionssubmitted by members.

Looking Back

The most significant challenge facedby public pensions at the federal levelin the first half of 2016 was envelopedin urgent legislation to stabilize thefinances of Puerto Rico. In December2015, Senate Finance CommitteeChairman Orrin Hatch (R-Utah)included pension measures in his bill tohelp Puerto Rico cope with a crippling$70 billion debt load.

“It was a success for our community”that these two provisions were droppedby the time President Obama signedthe relief bill into law on June 29, Roda

said. The first provision, known as thePublic Employee Pension TransparencyAct, or PEPTA, would have requiredpension plan sponsors to recalculatetheir funded levels and submit thatinformation to the U.S. TreasuryDepartment. “That doesn’t sound sobad, but the recalculation would have tobe done using fair market value of assetsand the Treasury bond yield curve,which would make even the best-funded pension plans look very poorlyfunded,” Roda said.

The other deleted provision was Hatch’sannuity accumulation plan, which wouldhave allowed plan sponsors to purchaseannuities for employees each year in lieuof providing other pension benefits. Thisapproach was objectionable because itwould have provided no survivor ordisability benefits for public safetyworkers, counter to longstanding publicpolicy, Roda said.

At the state level, it was another goodyear, with no defeats and “a couple ofproactive wins,” said Childers.Wisconsin passed a bill allowingmunicipalities that don’t offer pensionsto join the Wisconsin RetirementSystem, effectively expanding publicpension benefits in the state. AndOklahoma, in what Childers describedas “a unique approach,” created themechanism for a rainy day fund for itspension plans.“The other big-picture good news isthat public pension funding across the

board continues to improve,”Childers said. “The hits that pensionstook during the recession have been acatalyst for people to say let’s get ridof them. But now, as long as states aremaking the payments like they aresupposed, pension systems arerecovering. They can weather aneconomic storm; they just have totake time.”

Attempts in Indiana and Alabama toswitch to hybrid pension plans or acash-balance model were stoppedduring the first half of 2016, Childersadded.

Alaska, which has broached the idea ofreturning to a defined-benefit plan,didn’t pass legislation this year, but thetopic got a committee hearing and mayhave traction in the next legislativesession, Childers added. “Alaska is oneof the states that recognize that thisexperiment with moving to definedcontribution plans” doesn’t deliver thepromised benefits.

What’s Ahead

Congress begins its traditional Augustrecess on the heels of the Democraticand Republican national conventionsin July. And with Election Daylooming on Nov. 8, Congress willreturn on Sept. 6 for only one month,Roda said. “The only must-pass

Semiannual State and Federal WebcastSpotlights Victories, Emerging Issues


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N C P E R S , T h e Vo i c e f o r P u b l i c P e n s i o n s ! A u g u s t 2 0 1 6 • 7

legislation during this time is the budgetresolution,” he said. But that doesn’tmean public pension issues will bedormant. He identified three issues thatcould arise:

m The Hatch bills could resurface asamendments to other pendinglegislation. The first opportunitywill be S.1714, a bill to shore uppension and retiree health benefitsfor retired mine workers, Roda said.Hatch will mark up this bill inSeptember, and a defensive battlecould follow.

m Rep. Robert Dold (R-Ill.)introduced a bill in June thatprohibits state funds through theElementary and SecondaryEducation Act from using thosefunds to cover the unfunded liabilityof pension plans. The measurefailed when it was previouslyintroduced, in 2015, but it couldcome to the floor of the House inSeptember, Roda said. In the latestiteration, any system that is funded50% or greater was exempted. Thebill introduces new terminology thatwill need to be defined.

m The Social SecurityAdministration’s WindfallElimination Provision (WEP),which affects how retirement anddisability benefits are calculated,was scheduled to come before theHouse Ways and MeansCommittee in July, but this actionwas postponed. Opponents ofWEP, including NCPERS, havecalled it arbitrary and unfair. Rodanoted that Ways and MeansChairman Kevin Brady (R-Texas)

is committed to bipartisan actionto treat teachers, firefighters, andpolice officers who paid intoSocial Security the same as otherAmerican workers. Brady may“put the bill back together”during August, when Congresswill be in recess, Roda said.

m A lame duck session of Congressis a definite possibility, but thechances of it will probably rest onthe outcome of the presidentialelection, Roda added.

At the state level, meanwhile, manymoving parts will require carefulmonitoring, Childers said:

m The next six months will berelatively quiet for the states, withonly a few legislatures remainingin session. The MichiganLegislature and the PennsylvaniaGeneral Assembly are twoexceptions, and Childers said sheand her team will be staying on topof developments there. In bothstates, the push has been on forseveral years to shift variousgroups of public employees intodefined contribution or hybridplans.

m In 2017, Texas and Nevada – twolarge states whose legislatureswere not in session in 2016 – willbe back in session.

m The activities of severalfoundations and coalitions with ananti-pension agenda remain a deepconcern. The Laura and JohnArnold Foundation and the PewCharitable Trust have renewedtheir partnership, with close to $10million now committed to

promoting hybrid and side-by-sideplans in states including Alabama,Pennsylvania, and Kentucky. TheRetirement Security Initiative, aconservative group, is doingsignificant anti-pension work inNebraska, Pennsylvania, andArizona. “We’ve sent letters to allstate legislators to let them knowPew has an agenda they arepushing across the US. It’s notspecific to any state,” Childerssaid. Anti-pension activity at themunicipal level is particularlytroubling, she added.

During the question-and-answersession with members, Kim turned towhat he called “the elephant in theroom” – the 2016 presidentialelection. Roda noted that Democraticnominee Hillary Clinton has a longertrack record on retirement issues thanher opponent, Republican nomineeDonald Trump. Trump has said verylittle on the issue, except for clearlyopposing cutting Social Securitybenefits. However, Roda pointed out,the GOP platform says all optionsshould be on the table.

Childers said she will be followingthe elections with an eye to changesof party at the legislature andgubernatorial level. “We might havenew threats, and we might have newopportunities to do more proactivework,” she said. And inevitably, sheadded, “there will be a lot of newlegislators. We will need to doeducation to help them understandwhat pensions are, why they matter,and why they work for their state.” "

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FEDERAL news


Bankruptcy Clause to the U.S.Constitution, which gives Congress thespecific power to enact uniform lawson the subject of bankruptciesthroughout the U.S. In addition, theManhattan Institute’s white paper statesthat the U.S. Supreme Court has heldthat the Constitution “does not impairCongress’ ability under the BankruptcyClause to define classes of debtors andstructure relief accordingly.”

The proposal includes the ability of an

affected person to challenge apetition by demonstrating, by clearand convincing evidence, that thepetition is unnecessary. However, inevaluating challenges, theBankruptcy Court must defer to thejudgment of the state legislature andthe governor regarding revenue andspending, unless there is no rationalbasis underlying that judgment.

Legislation has not yet beenintroduced on this proposal. Suchlegislation would be referred to theHouse and Senate Judiciary

Committees. Be assured thatNCPERS will closely monitor thisproposal for any Congressionalinterest. !

1Railway Labor Executives’ Association v. Gibbons,455 U.S. 457,473 (1982).

Tony Roda is a partner at the Washington,D.C., law and lobbying firm Williams &Jensen, where he specializes in legislativeand regulatory issues affecting state andlocal pension plans. He representsNCPERS and individual pension plans inCalifornia, Ohio, Tennessee, and Texas.

Bankruptcy Code continued from page 4

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