Everett School Employees Benefit Trust
    Monday, June 13, 2011
    Minutes
    Attendance
    Absent Also Attending Recorder
    Mike Gunn
    Randi Seaberg
    Gail Buquicchio
    Kellee Newcomb
    David Jones
    Darla Vanduren
    Susan Lindsey
    Jayson Davidson
    John Morrill
    Keene Satchwell
    Molly Ringo
    Jay Dyer
    Betsy Selders
    Sean White
    Tom Pursley
    Call to Order
    The meeting was called to order by Susan Lindsey at 4:02 p.m.
    Adoption of Agenda
    A motion was made by Betsy Selders and seconded by John Morrill to approve the agenda as
    written. The motion passed unanimously.
    Approval of Minutes
    The minutes of the May 16, 2011 meeting were presented for approval. Darla Vanduren noted that
    the name of the Trust’s annual auditor was misspelled and asked that the minutes be revised to
    reflect the correct name of Toyer and Associates. A motion was made by Molly Ringo and
    seconded by John Morrill to approve the minutes with the correction to the name of the auditor.
    The motion passed unanimously. Mike Gunn abstained as he was not present at the May 16, 2011
    Trust meeting.
    Wellness
    Gail Buquicchio proposed options to the Trustees for her agenda items. She indicated that she
    usually provides an end-of-the-year report at the June meeting. Because the end-of-the-year staff
    survey closes on Wednesday, June 15, 2011, she stated she could postpone this report until August
    which would allow her to include the survey results and the Wellness budget. The Trustees agreed
    they would prefer to have something provided, either written or orally, at the June 20, 2011 meeting.
    An update could be provided at the August Trust meeting. Gail will provide an end-of-the-year
    report at the June 20, 2011 meeting.
    Gail reminded the Trustees that a proposed budget had been provided to them at the May 16, 2011
    meeting and asked if there were any questions. Mike Gunn indicated that he had not received a
    copy of the proposed budget. David Jones asked about the increased cost of the flu vaccines. Gail
    indicated she is anticipating an increase in the cost of the vaccine, as well as in the numbers of staff
    requesting the injection. These projections resulted in the increased cost. The Trustees asked Gail
    for more time to review the budget before voting. This item will be added to next week’s agenda.
    Gail was also asked to provide the budget to the Trustees electronically. The Trustees will vote on
    the Wellness budget at the June 20, 2011 meeting.
    Gail stated she has been looking for ways to stay connected with staff members over the summer
    break. One way she thought might be effective is the creation of a Wellness Program Facebook
    page. She is preparing to send out an end-of-the-year message to staff and if the Trustees agreed, she
    would include information about the Facebook page option. Gail indicated that staff have asked for
    communication options, such as a blog, in the Wellness survey. She has talked with the
    Communications Department regarding setting up the page, which she would monitor. If the
    Trustees agreed, she would move forward with this communication option. This option would be in
    addition to the current Wellness web page and would not name the Trust. It would be used strictly
    as a communication tool for staff to interact and connect with each other around wellness.

    Everett School Employees Benefit Trust
    June 13, 2011
    Minutes – continued
    The Trustees discussed the communication option and agreed it was a good idea and for Gail to
    move forward.
    Investment Report
    Jayson Davidson stated it has been about a year since Becker Capital Management has attended a
    Trust meeting to report on the Trust’s investment portfolio. He reintroduced Jay Dyer and Keene
    Satchwell who would be presenting the report to the Trustees and answering any questions.
    Keene explained what was in the investment report through May 31, 2011 and reviewed the
    information with the Trustees. The account performance indicated the year-to-date portfolio was up
    about 1 percent. Tom Pursley of Mercer asked about the benchmarks used and the under
    performance in the portfolio. Keene explained how the CDs worked, reviewed with the group the
    10-year rates since the September 3, 2009 inception of the portfolio and explained the variations. He
    stated there were some missed opportunities. Tom’s concerns about the portfolio were possible
    requirements to liquidate assets due to potential changes from the state. There may be some
    substantial realized losses with significant rate risks in going long. Keene explained that they are
    following the direction of the Trust. Jayson indicated the portfolio is short relative to the
    benchmark. Tom expressed his concerns for the Trust and asked that they be placed in a position of
    no losses, and that they run a conservative portfolio mindful of budget constraints. Molly explained
    that the concerns were due to state funding issues and potential changes to the way health care is
    managed for state employees in the future. Jayson suggested that the policy may need to be revised
    to include specific management direction. Darla indicated the Portland branch has always had
    enough funds when she has had to request transfers. To this point they have not had to sell anything
    in order to have enough cash on hand as needed. The Trustees discussed the need for improved
    communication on their part regarding the amount of cash needed on hand. They stated it is
    important that Jayson be aware of this so that the portfolio manager can be instructed accordingly.
    Keene talked about the assets that could be raised immediately without any losses.
    The group discussed concerns regarding the economy and the lack of recovery to this point and the
    possible need to reevaluate the portfolio. Tom stated the interest rate increases would be an issue if
    the Trust had to liquidate. The Trustees informed Jayson, Keene and Jay about the possible
    legislative action regarding the Trust and the possibility that all school employees could be placed
    under the same insurance plan statewide. This could affect the renewal process and the parameters
    may need to be adjusted.
    Jayson stated he feels the economy will improve which means their prospects will improve when the
    rates begin to go up. The Trustees may want to follow up as a result of this meeting and change the
    dynamics of the portfolio. They may also need to revise the policy as Becker is abiding by the
    current Trust investment policy. This topic can be pursued at a future meeting. Susan indicated the
    Trust would contact Jayson once more is known about the state budget and possible legislative
    action.
    Consultant Report
    Sean provided the Trustees with a Paid Claims Experience Report for their review. He did not
    review the document with the Trustees. Contact Sean with any questions regarding this report.
    Sean provided the Trustees with a preliminary 2012 budget and potential deficit reduction scenarios.
    Sean reviewed the information with the Trustees. They discussed the proposed options including
    continuing with the status quo, a redesign of the current plans to match current contribution levels,
    potentially moving to PEBB, or potentially moving to WEA. The Trustees reviewed the
    information and discussed the potential impacts to employees. The group discussed the possibility
    of two year projections rather than one year, and soliciting feedback from employees prior to the end
    of the school year.

    Everett School Employees Benefit Trust
    June 13, 2011
    Minutes – continued
    Molly talked about the interest from the SEIU and whether the Trust should send out a survey.
    Tom stated that in his experience a survey would not hold much value, and that generally the best
    feedback from staff was the way they select among offered plans. The Trustees discussed sending a
    letter to benefit eligible employees as an alert to the potential changes to insurance benefits. Molly
    indicated the different employee groups also should be alerted and asked for their recommendations
    on communicating this information to employees.
    David drafted a letter during the discussion which he read to the Trustees. A copy will be sent to the
    Trustees for their review and feedback. The group discussed the potential of a letter being included
    in the Payroll email that would be going out before the end of the school year This task will be
    directed to Randi to determine how best to get the word out. It was also suggested that the letter be
    shared with the President’s Council at an upcoming meeting.
    The group discussed with Sean the possibility of changing vendors or scaling back plan designs as a
    way to reduce costs. Sean stated these options would not have a significant value of savings to
    justify the changes. Sean will bring back more detailed renewal information at the August meeting.
    He will also provide additional scenarios that would indicate achieving change through plan design
    and less through cost. Tom suggested the option of maintaining what the Trust currently offers by
    eliminating other benefit options, such as dental coverage. Sean explained what the Trust would
    need to do to maintain grandfathered status with the Healthcare Reform. He will email the Trustees
    with information in advance of the next meeting.
    Oth e r
    Due to the length of the meeting thus far, a motion was made by John Morrill and seconded by
    Mike Gunn to postpone the remainder of the agenda items (beginning with the Financial Report) to
    the meeting on Monday, June 20, 2011. The motion passed unanimously.
    Molly recommended a follow up discussion take place with Jayson Davidson. She also wondered if
    items on the Trust agenda could be provided to the Trustees in advance of the meetings which
    would allow materials to be previewed, and the work of the Trust to be better performed.
    Adjournment
    The meeting was adjourned at 6:36 p.m.
    Sincerely,
    David Jones
    Secretary
    kn

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