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July Board Update

July 2018 Board Meeting Update

[Posted on 08/01/2018 at 2:33 PM]

In an effort to provide information more quickly to you about actions taken by the MOSERS Board of Trustees, we are developing these updates, emailing them to members, and posting them online. This is a summary, not the official minutes of this meeting. Once the Board approves the minutes at their next Board meeting, we will post them to the MOSERS website.

July 19, 2018 Board Meeting Summary

Actuarial Assumptions and Methods

After considerable deliberation, the MOSERS Board approved the reduction of their assumed rate of return (ARR) on investments from 7.50% to 7.25%, effective June 30, 2018. This change includes the intention to further reduce the ARR to 7.10%, effective June 30, 2019, and then to 6.95%, effective June 30, 2020. The Board made these decisions after having previously authorized an economic assumptions and actuarial methods review by their external actuary, Cavanaugh Macdonald Consulting, LLC. The actuary presented the review at the June Board Educational Conference on June 22, 2018. The Board also approved utilizing a 5-year closed asset smoothing method with a 7-year transition period for previous losses. Thirdly, the Board approved resetting the amortization period for the unfunded liability from 26 years to a layered 30-year closed period.

Governance and Strategic Planning Report

Mosaic Governance Advisors presented the governance policy review and strategic planning report. This report is a product of Board and staff interviews with Mosaic, policy reviews, and June Board Conference discussion. The Board approved a motion to rewrite the MOSERS governance policy using appropriate committees for investment and non-investment related areas and to utilize consultants as needed.

Investment Committee Update

At the June 2018 MOSERS Board Educational Conference, the Board approved a new asset allocation for MOSERS’ investment portfolio.  The Board’s investment consultant, Verus Investments, LLC, provided an update on the development of the implementation process for the newly-adopted asset allocation policy. The Board approved Verus’ recommended benchmarks for the new asset allocation classes.

Investment Reports

Staff reported on MOSERS' returns for the fiscal year. The return, 7.42% for the fiscal year ended June 30, 2018, added approximately $600 million to the MOSERS trust fund.

Future Board Meeting Dates

September 13, 2018 – 9:00am in MOSERS Boardroom

November 15, 2018 – 9:00am in MOSERS Boardroom

For more information about MOSERS, go to:

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Missouri State Employees' Retirement System
Address: 907 Wildwood Dr., Jefferson City, MO 65102 Phone: 800.827.1063 URL: Email: Founded On: September 1, 1957