From: Newcomb, Kellee

Sent: Wed Apr 08 17:57:05 2015

To: Newcomb, Kellee

Subject: Trust Meeting 4-8-15

Importance: Normal

Trust Meeting 4-8-15

Present: Jayson Davidson, Becker guys, Sean White, Aanya Lee, Kelly Shepherd, gregg elder, darla vanduren, cris bosket, molly ringo, gail buquicchio, susan Lindsey, jeff moore

Absent: Adam Goldstein, randi seaberg

Call to order at 4:08

Adoption of agenda by molly and seconded by susan

Approval of minutes by kelly and seconded by jeff

Financials

Darla reviewed the highlights with the group.

darla talked about review of auditor engagement for annual audit. had exit conference with district. talked about move to accural basis. this year no exit items. move made a difference. district and trust in alighment. spoke with bruce and he is interested in doing next year. he may increase cost due to more time. will give docs to her first part of may and she will distribute but will not be a the may meeting. would be enough time to look in may and accept in june.

Investment manager presentation

jayson provided documents. and explained shy. due to changes. becker is now operating under instruction 3 months of expenditures. language in policy had not been updated. also want to adjust the policy benchmark. explained why discussion item. if trustees give more flexibility will have to be adjusted again. one or two new nuances and he explained. adjusted the language to accommodate what has been discussed thus far. can make additional adjustments as needed. talked about the merrill lynch changes over the year and possibly the move back to 1-10.

jason explained what they will present and that they will provide scenarios. they thanked the trustees. introduced themselves and gave an update of the firm. jay reviewed the portfolio with the group. information updated as of yesterday. keene talked about the characteristics of the portfolio and potential change of Merrill Lynch benchmark. talked about duration and benchmark. talked about general market conditions.

talked about measures of inflation. statistics to consider. talked about risks in buying corporates. have not had a corporate bond default in the history of becker.

reviewed total return. in a low rate environment. even when extend out not getting rates you want to see but picking up incremental bits. talked about mesaure of risk and what is comfortable. talked about historical losses and they are not huge. actually risk in the bond market is not a lot. suspension is in for tough row with interest rate from the feds. pick up yiedl by going out. probably good flexibility. talked about what other clinets are asking. asking do trust want to allow becker to go out to 1-10 extend? do you want to allow them the latitude to buy gover and corporates. if trustees 2.6-3.0 if trustees allow both. about double the yield.

jeff asked about risks and penalties with the long term committments. keene said very liittle penalty in this market. small transaction fees. corporate side would also be small ppenalty. jayson explained the risk. molly talked policy regarding disolvig the trust. the group discussed the information provided. level of comfort with the incremental risk.

how long? more than just govt? need to review, discuss policy change and decision made at another meeting. policy changes are needed for current standards. talked about purchasing AAA bonds. recommendation average of AA and no security below investment grade at time of purchase. darla asked about percentage of default. historical keene provided info. less than 1% default rate. will discuss and can email questions. decision next month. make decision on portfolio and will adjust policy as needed.

Consultant Report

ssean reviewed the report. Aanya reviewed the renewal recap and 2016 planning.

talked about possible carving out of dental and if so, would be a major disruption. dpenndent verification audit - biggest issue with wea now.being part oft hat network have to do that audit.

ssean and aanya asked for any questions of the trustees. recommendation to stay with uuhc. recommendation to not jump around. give it time. change is hard. based on discuussion. if direction is to look at other carriers need to know today. group discussedd and provided feedback. concerned about switching again would cause morre disruption. cost and data. significant undertaking for mercer to go out and find new providers and also a significant cost to the trust in the increased work. hr has notedd that complaints are down. possible communication to staff that the trustees are aalwasy looking at other options and considering what is best for employees. suggestedd having uhc rep to come back. cris expects next hiccup to be in augusst whhen prescription drug list changes. important to emphasis that standard process for vvendors to change their formularies. weighed the option to go out and seek other plans or continue what doing now. can show rate comparison with wea. also group heallth access and wider network to look at as well.

ttalked about the classified benefit being cut and how that will affect the trust.

HR Update

cris shared that only info on premera breach is what has been provided to employees. ccalls to premera is friendly and walking peopole through fraud protection. proactice communicaiton can go on site.

vvision metlife is contracting with VSP. metlife product but leveragin gthe vsp network but metlie product. same network. metlife providers on website telling people that they aare not covered. many communications through metlife asking providers to not turn awway customers. metlife has a 1 to 1 correlation with the vsp network. you should not bbe turned away if taking to same place. hr will draft something.

uhc calls much better. hot rouble issues are ones that would receive anyway. talked about the auto enroll online. gregg talked about conversation with uhc representative and it was great.

Wellness Program Update

provided updates on wellness program activities. talked about possiblity of finding another vendor for the wellness challenge.

reviewed the mission and vision statment. program goals she provided samples. these are gails recommendations. provided a draft strategic plan. let them review and next month work on. finalize next month.

update on the coordinator position. glanced at the applications. about 10 applications.

Adopt annual meeting calendar

jjeff moved and kelly seconded.

Review operational manual

tthis item was delayed to anoter meeting.

May meeting agenda items

ppolciy and budget item.

mmonthly update on uhc.

ffinalize the wellness goals.

Other

Adjournment at 5:59

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