HomeMy Public PortalAboutR2293 R E S O L U T I O N NO. 2293
WHEREAS, The Metropolitan St. Louis Sewer District has established an
Employee Pension Plan in accordance with provision of the District's Plan, Section 3.020,
paragraph 22, and through the enactment of Ordinance No. 4641 as amended which provides
for the pensioning and other retirement benefits of employees of the Metropolitan St. Louis
Sewer District and spouses and minor children of deceased employees, and provides for the
payment of public funds for such purposes, in accordance with the Missouri Constitution of
1945, as amended, and the Missouri Statutes enacted authorizing said Pension Plan, and the
Plan of The Metropolitan St. Louis Sewer District, and
WHEREAS, the Board shall select the manner of funding the Pension Plan,
whether by insurance or annuity contracts, trust agreement, or any other means, and shall
have authority to select or change any Carrier, Trustee or depository with which said contracts
or trust agreement shall be entered into and with which monies of the Pension Fund shall be
held, managed and invested.
WHEREAS, the Board of Trustees of The Metropolitan St. Louis Sewer District
in fulfilling its fiduciary responsibility for the Pension Plan, periodically reviews the benefits,
investments of pension funds, and general administration of the pension plan, and
WHEREAS, the Board of Trustees of The Metropolitan St. Louis Sewer District
presently receives services from Yanni-Bilkey Investment Consulting pension fund investment
consultants, per Ordinance No. 9664, adopted September 14, 1995, to generally advise the
Board of Trustees as they have evaluated how the plan assets have been invested for the
benefit of the current and prospective retirees and their beneficiaries, and
WHEREAS, Yanni-Bilkey Investment Consulting, pension fund investment
consultant, has conducted a review and evaluation of the Employee Pension Fund investment
activities, and has made certain pension fund investment recommendations to the Board of
Trustees,
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF
THE METROPOLITAN ST. LOUIS SEWER DISTRICT that the assets of the Employee
Pension Plan be invested with the approval of the Board in the manners indicated below:
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(1) A range of fifty-five percent (55%) to sixty-five percent (65%) of the
total Pension Plan assets be invested in equity instruments. The current
equities portion of the Pension Plan investments shall be set at a level
of sixty percent (60%) and shall be divided into general investment
component categories as follows:
(1) Large Capitalization Value - twenty-seven percent (27%)
(2) Large Capitalization Growth - eighteen percent (18%)
(3) Small Capitalization Equity - seven and one half percent (7-
1/2%)
(4) International Equity - seven and one half percent (7-1/2%)
The Large Capitalization components may each range plus or minus five percent (5%) of the
allocation assigned above.
The Small Capitalization Equity and Internal Equity components may each range from five
percent (5%) to ten percent (10%) of the assets invested in equity investments.
(2) A range of thirty-five percent (35%) to forty-five percent (45%) of the
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total Pension Plan assets shall be invested in fixed income instruments.
The current fixed income portion of the Pension Plan investments shall
be set at a level of forty percent (40%) and shall be divided into
general investment component categories as follows:
(1) Intermediate Fixed income instruments - thirty-five percent (35%)
(2) Short Term Investment Fund (STIF) - five percent (5%)
The Short Term Investment Fund (STIF) component may range from zero percent (0%) to
five percent (5%) of the assets in the fixed income portion of the Pension Plan.
The Board of Trustees may from time to time alter the asset mix, the various
investment instruments, and portfolio managers of the pension investment plan in response to
changing investment market conditions.
BE IT FURTHER RESOLVED that the staff prepare the necessary resolutions
and ordinances to carry out the recommendations of Yanni-Bilkey Investment Consulting for
the District's investment policy, and asset allocations for investment purposes.
BE IT FURTHER RESOLVED that as a part of the pension fund investment
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policy, that Yanni-Bilkey Investment Consulting provide a quarterly report to the Board of
Trustees concerning the performance of each pension fund investment portfolio manager and a
recommendation on the pension fund asset investment mix for the coming quarter.
The foregoing Resolution was adopted June 11, 1998.