meeting notice & agenda kent county pension review...

MEETING NOTICE & AGENDA KENT COUNTY

PENSION REVIEW COMMITTEE

Quarterly Meeting via Telephone Conference Call

Kent County Administrative Complex, Room 221

555 Bay Road, Dover, DE

Thursday, May 14, 2020 – 2:00 p.m. To join the meeting Dial: 1-800-377-8846 The meeting access code is: 92535882#

CALL TO ORDER

ROLL CALL AND DETERMINATION OF A QUORUM

ADDITIONS/DELETIONS TO THE AGENDA

APPROVAL OF AGENDA

APPROVAL OF MINUTES FROM PREVIOUS MEETINGS

February 20, 2020 Quarterly Meeting

NEW BUSINESS:

1) Segal Marco Advisors – Quarterly Pension Investment Performance Report

2) DSPO – Retiree Benefits Investment Performance Report

3) Staff – Pension Valuation Report (January 1, 2020)

4) Staff – 2019 Annual Report to Levy Court update

5) Staff – FY20 Partial Pension & OPEB Contribution Updates

6) Staff – 2021 Budgeted Pension & OPEB Contributions

7) Staff – OPEB Assumptions & Funding Policy Recommendations Status Update

8) Grant Thornton – OPEB Modeling Report (w/requested revisions)

9) Staff – Deferred Compensation (457) Provider RFP Status Update

10) Staff – Quarterly Pension Activity Reports

11) Any other business properly brought before the Committee

PUBLIC COMMENTS

NEXT MEETING DATE: August 20, 2020 – Annual Appreciation Lunch?

ADJOURN

29 Del.C. 10004(e)(2). The Agenda items as listed may not be considered in sequence. This

Agenda is subject to change to include additional items or the deletion of items which arise at the

time of the Meeting.

POSTING DATE: May 5, 2020

POSTING TIME: 5:00 p.m.

POSTED BY: Allan Kujala, Personnel Director

TAKE DOWN: May 14, 2020 @ 5:00 p.m.

Kent County Levy Court Employees ANALYSIS OF INVESTMENT PERFORMANCE

Retirement Program March 2020

Tanya LaytinAssociate Consultant

Copyright © 2020 by The Segal Group, Inc. All rights reserved.

This performance report ("Report") is based upon information obtained by Segal Marco Advisors ("SMA") from third parties over which SMA does not exercise any control. Although the information collected by SMA is believed to be reliable, SMA cannot verify or guarantee the accuracy or validity of such information or the uniformity of the manner in which such information was prepared. The rates of return reflected herein are time weighted and geometrically linked on a monthly basis using a modified Dietz method. Monthly valuations and returns are calculated based on the assumptions that all transactions and prices are accurate from the custodian and /or investment manager. The client to whom Segal Marco Advisors delivers this Report ("Client") agrees and acknowledges that this Report has been prepared solely for the benefit of Client. SMA disclaims any and all liability that may arise in connection with Client’s conveyance (whether or not consented to by SMA) of the this Report (in whole or in part) to any third party. Client further agrees and acknowledges that SMA shall have no liability, whatsoever, resulting from, or with respect to, errors in, or incompleteness of, the information obtained from third parties. Client understands that the prior performance of an investment and /or investment manager is not indicative of such investment 's and/or investment manager's future performance. This Report does not constitute an offer or a solicitation of an offer for the purchase or sale of any security nor is it an endorsement of any custodian , investment and/or investment manager.

Ta b l e o f C o n t e n t sANALYSIS OF INVESTMENT PERFORMANCE

Section Financial Market Conditions ............................................................................................................................................................ 1

Total Fund........................................................................................................................................................................................ 2

Investment Manager Performance................................................................................................................................................... 3

Fee Analysis .................................................................................................................................................................................... 4

Financial Market Conditions

1

Global Equity Performance and Valuations• Global industrial production was slashed by the Covid-19 outbreak,

which weighed on equities in Q1. All global markets fell significantly,with the US outperforming international developed and emergingmarkets by 3% and 4%, respectively.

• Most major central banks acted quickly to limit a further drop inglobal equities. The more substantial stimulus measures taken bythe Federal Reserve and US Congress, as well as the continuedstrength of the US dollar, largely explained the US’ relativeoutperformance.

• The oil price war between Russia and Saudi Arabia hurt globalenergy companies, as the MSCI ACWI Energy index fell 44% in Q1,compared to the MSCI ACWI index’s 21% decline.

• The downturn in global markets caused most valuations to fall tonear their 20 year medians. The US Mid Cap and MSCI Japanindices both offered greater than 15% discounts to long term valuations at quarter-end.

Q1 2020 In Review: Global Equity Overview

Source this page: FactSet

Equity Indices QTD YTD 1-Year 3-Year 5-Year 10-Year

S&P 500 -19.60% -19.60% -6.98% 5.10% 6.73% 10.53%

MSCI Europe, Australasia and Far East (EAFE)* -22.83% -22.83% -14.38% -1.82% -0.62% 2.72%

MSCI Emerging Markets (EM)* -23.60% -23.60% -17.69% -1.62% -0.37% 0.68%

Data range is from 3/31/00-3/31/20. P/E ratios are forward 12 months.

All data in the table are percentages.* Net dividends reinvested

10-Yr Avg 15.0 15.5 15.5 13.2 11.2 14.3 12.6 13.5 14.2

2

U.S. Equity

Performance• The economic slowdown resulting from the global outbreak led to a

huge sell-off during Q1. Investor panic caused a rush to liquidityand volatility reached an all-time high.

• The Fed and Congress launched stimulus measures meant tostabilize the economy and markets. The S&P 500 rebounded 15%by quarter-end after the U.S. government’s $2.2 trillion stimuluspackage was approved on March 23rd.

• Growth outperformed value in Q1, as tech and healthcare stocksheld up better than other sectors. Large cap companiesoutperformed small cap companies as the Russell 1000 beat theRussell 2000 by over 10%.

• The technology sector held up best in Q1, falling 12%, and remainsthe only positive S&P 500 sector on a trailing one year basis.Energy took a beating during the quarter, falling 50%, as US crudeoil prices dropped 54% in the month of March.

Q1 2020 In Review: U.S. Equity

Sources this page: Investment Metrics, FactSet

U.S. Equity Indices QTD YTD 1-Year 3-Year 5-Year 10-Year

S&P 500 -19.60 -19.60 -6.98 5.10 6.73 10.53Russell 1000 -20.22 -20.22 -8.03 4.64 6.22 10.39Russell 1000 Growth -14.10 -14.10 0.91 11.32 10.36 12.97Russell 1000 Value -26.73 -26.73 -17.17 -2.18 1.90 7.67Russell 2000 -30.61 -30.61 -23.99 -4.64 -0.25 6.90Russell 2000 Growth -25.76 -25.76 -18.58 0.10 1.70 8.89Russell 2000 Value -35.66 -35.66 -29.64 -9.51 -2.42 4.79Russell Midcap -27.07 -27.07 -18.31 -0.81 1.85 8.77Russell 3000 -20.90 -20.90 -9.13 4.00 5.77 10.15

S&P 500 Sector Returns QTD 1-Year

Cons. Disc. -19.29 -10.77Cons. Staples -12.74 -0.59Energy -50.45 -52.42Financials -31.92 -17.15

Healthcare -12.67 -1.01Industrials -27.05 -19.47IT -11.93 10.43Materials -26.14 -16.57Telecom -16.95 -3.32Real Estate -19.21 -11.32Utilities -13.50 -1.40

All data in the tables are percentages.

3

U.S. Equity

Performance• The spread of Covid-19 severely impacted international markets. The

MSCI EAFE and MSCI World ex US indices, proxies for internationaldeveloped markets, each fell by 23% for the quarter.

• Eurozone equities fell sharply as Europe became the worst-affectedinternationally developed region impacted by the outbreak, with Italyand Spain being the hardest hit countries.

• Global trade exposures and fiscal policy in the Eurozone impacted stimulus measures in Europe. Japan had the best relative performance of any internationally developed country in part by implementing socialdistancing policies sooner than other countries.

• All MSCI EAFE sectors were negative, though health care’s single-digitloss was the best relative performance in the quarter. Energy fell themost after oil prices tanked with Russia refusing to agree to a proposed shared production cut of crude oil with OPEC. Financials were also hardhit as the Fed dropped short-term interest rates to zero.

Q1 2020 In Review: International Equity


MSCI International Equity Indices QTD YTD 1-Year 3-Year 5-Year 10-Year

World ex. U.S. -23.26 -23.26 -14.89 -2.07 -0.76 2.43EAFE -22.83 -22.83 -14.38 -1.82 -0.62 2.72EAFE Local Currency -20.55 -20.55 -12.58 -1.80 -0.15 4.36Europe -24.33 -24.33 -15.50 -2.34 -1.31 2.46Europe ex U.K. -22.76 -22.76 -12.72 -1.46 -0.58 2.72U.K. -28.81 -28.81 -22.98 -4.85 -3.34 1.60Japan -16.79 -16.79 -6.69 0.95 1.82 3.83Pacific Asia ex Japan -27.60 -27.60 -23.65 -4.69 -1.52 2.14

MSCI EAFE Sector Returns QTD 1-Year

Consumer Disc. -26.79 -15.00Cons. Staples -13.47 -8.47Energy -36.20 -37.85Financials -31.57 -24.66Healthcare -8.88 7.06Industrials -26.42 -16.01IT -17.69 -1.73Materials -26.81 -20.51Telecom -18.01 -11.46Utilities -13.24 -5.08Real Estate -27.58 -27.09

All data in the tables are percentages and net dividends reinvested.

4

U.S. Equity

Performance• Emerging markets were the worst performing market relative to

both domestic and international developed markets in Q1 with a-24% decline.

• The crude oil price decline in March led the energy sector toplummet nearly -40% for the quarter. This affected a number of oildependent EM countries.

• China posted the best returns amongst EM countries despite beingthe first country exposed to the Covid-19 virus. Brazil declined themost in the index, falling -52% amid both economic and currencyweakness. Colombia fell nearly as much, stung by the slide in oilprices.

• Each EM sector posted negative absolute returns in Q1. Theenergy sector was the worst performer (-40%), The sectors thatheld up the best in Q1 were healthcare (-8%) and telecom (-10%).IT was the only sector to provide a positive return for the trailingone year.

Q1 2020 In Review: Emerging Market Equity


MSCI EM Equity Indices QTD YTD 1-Year 3-Year 5-Year 10-Year

Emerging Markets -23.60 -23.60 -17.69 -1.62 -0.37 0.68

EM Local Currency -19.05 -19.05 -12.99 1.35 2.03 3.78

Asia -18.09 -18.09 -12.10 1.32 1.42 3.53

EMEA -33.92 -33.92 -27.66 -8.07 -5.57 -3.57

Latin America -45.62 -45.62 -40.77 -12.98 -5.90 -6.67

MSCI EM Sector Returns QTD 1-Year

Cons. Disc. -18.05 -8.33Cons. Staples -19.76 -15.67Energy -39.87 -35.80Financials -31.07 -27.61

Healthcare -8.49 -8.45Industrials -28.03 -26.46IT -17.82 3.17Materials -30.68 -31.32Telecom -9.61 -8.22Utilities -25.99 -23.41Real Estate -26.74 -21.50

All data in the tables are percentages and net dividends reinvested.

5

Yield Curve• After the Federal Reserve cut rates for the second time in 2020,

yields fell dramatically across the curve. • Shorter-maturity yields fell to near zero, resulting in a lack of

liquidity in the Treasury market. The 1-month Treasury lower than its yield at the end of Q4. The 1-year Treasury ended the quarter yielding 0.17%, which was down 89 basis points from the prior quarter.

• Longer-maturity yields showed a smaller change, with the 30-yryield ending the quarter at 1.35%, a 44 basis point decrease over the prior quarter.

Monetary Policies/Global Interest Rates• Central bank deposit rates remained negative in Japan and

Europe. • Despite rate cuts, the U.S. continues to be a global outlier with

its policy rate at 0.25%. Policy rates in the Eurozone and Japanremain negative.

• The Fed made an emergency rate cut in March in an attempt tostimulate economic growth as many businesses shut down inthe midst of COVID-19.

Q1 2020 In Review: Fixed Income Overview

Source this page: FactSet

Interest Rates Fed Funds Rate EZ Deposit Facility Rate

Average 5.10% (1971-2020) 1.27% (1999-2020)

Max 20.0% (Mar. 1980) 3.75% (Oct. 2000)

Min 0.25% (March 2020) -0.40% (Mar. 2016)

1M3M6M1Y 2Y 3Y 5Y 7Y 10Y 30Y0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Yiel

d(%

)

03/31/2020

09/30/2019

12/31/2019

United States Treasury Yield Curve

4/01

/201

5

7/01

/201

5

10/0

1/20

15

1/01

/201

6

4/01

/201

6

7/01

/201

6

10/0

3/20

16

1/02

/201

7

4/03

/201

7

7/03

/201

7

10/0

2/20

17

1/01

/201

8

4/02

/201

8

7/02

/201

8

10/0

1/20

18

1/01

/201

9

4/01

/201

9

7/01

/201

9

10/0

1/20

19

1/01

/202

0

-1.0-0.50.00.51.01.52.02.53.0

%

Central Bank Target RatesFed Fund Target Rate Japan Target RateEurozone Deposit Facility - Yield

6

Q1 2020 In Review: U.S. Fixed Income

Performance and Spreads• The U.S. Aggregate Index was positive in Q1. This was

driven by Treasuries that had the strongest sectorperformance of 8.08% and a sizeable weight in the index.Corporate credit was a detractor, with U.S. Corporate HighYield sector generating -12.68% and Investment GradeCorporate down -3.63%.

• After generating a 2.61% return in Q4, high yield fell by10.07% over Q1.

• Domestic fixed income spreads dramatically widenedacross all sectors over Q1, with high yield spreadsshowing the largest increase over the prior quarter.

Sources this page: Investment Metrics, Hueler Analytics, FactSet

* Bloomberg Barclays Indices, unless otherwise noted.** Formerly Citigroup. Citigroup’s fixed income indices were purchased by London Stock Exchange Group (LSEG) and were rebranded to FTSE by July 31, 2018. FTSE Russell is a unit of LSEG’s Information Services Division and a wholly owned subsidiary of LSEG.All data in the table are percentages.

U.S. Fixed Income Indices* QTD YTD 1-Year 3-Year 5-Year 10-Year

U.S. Aggregate 3.15 3.15 8.93 4.82 3.36 3.88Government/Credit 3.37 3.37 9.82 5.17 3.54 4.15Government 8.08 8.08 13.08 5.78 3.63 3.72Investment Grade Corporate -3.63 -3.63 4.98 4.20 3.36 4.92Investment Grade CMBS 0.47 0.47 5.37 4.06 3.13 4.89U.S. Corporate High Yield -12.68 -12.68 -6.94 0.77 2.78 5.64FTSE** 3-Month T-Bill 0.39 0.39 2.04 1.74 1.12 0.60Hueler Stable Value 0.60 0.60 2.52 2.30 2.09 2.17

Data range is from 12/31/19-3/31/20 7

Q1 2020 In Review: International Fixed Income

Global Performance and Yields• Government yields fell in Q1 across developed markets.• Central bank policies globally have implemented more stimulus

measures with the global economic shutdowns and asunemployment claims rose exponentially in the U.S.

• The British pound and the Euro depreciated relative to the U.S.dollar, while the yen appreciated.

• Japanese bonds were up while the UK and Eurozone were down.• Emerging markets ended the quarter with negative returns. Issues

with the most liquidity, as well as currencies that are mostsensitive to oil prices, saw the biggest drops.

Sources this page: FactSet, Investment Metrics

Global Fixed Income Indices QTD YTD 1-Year 3-Year 5-Year 10-Year

Bloomberg Barclays Global Aggregate -0.33% -0.33% 4.20% 3.55% 2.64% 2.47%

Bloomberg Barclays Global Aggregate (Hgd) 1.45% 1.45% 6.59% 4.65% 3.49% 4.06%

FTSE Non-U.S. WGBI* -1.88% -1.88% 1.79% 3.14% 2.39% 1.38%

FTSE Non-U.S. WGBI (Hgd) 1.30% 1.30% 6.14% 5.07% 3.83% 4.34%

JPM EMBI Global Diversified** -13.38% -13.38% -6.84% 0.42% 2.82% 4.94%

JPM GBI-EM Global Diversified*** -15.21% -15.21% -6.52% -0.80% 0.25% 0.49%All data in the table are percentages.* Formerly Citigroup. The FTSE Non-U.S. World Government Bond Index (WGBI) measures the performance of fixed-rate, local currency, investment grade sovereign bonds excluding the U.S.** The JP Morgan Emerging Market Bond Index (EMBI) Global Diversified index measures government bonds in hard currencies.*** The JP Morgan Government Bond Index – Emerging Markets (GBI-EM) Global Diversified index measures government bonds in local currencies.

7/18 10/18 1/19 4/19 7/19 10/19 1/20 4/20-1.5%-1.5%

-1.0%-1.0%

-0.5%-0.5%

0.0%0.0%

0.5%0.5%

1.0%1.0%

1.5%1.5%

2.0%2.0%

2.5%2.5%

3.0%3.0%

3.5%3.5%

GY: -0.49%

JP: 0.02%UK: 0.33%US: 0.68%CA: 0.71%

Global 10Y Treasury YieldsUSA Japan UK Germany Canada

8

Total Fund Composite

9

Asset Allocation by Segment

SegmentsMarket Value

($)Allocation

(%)

Domestic Equity 16,623,364 42.10

Domestic Fixed Income 12,905,493 32.69

Balanced 3,837,899 9.72

International Equity 3,096,174 7.84

Real Estate 1,980,198 5.02

Emerging Equity 878,505 2.23

Cash 161,153 0.41

Performance Bar Chart

Total Fund Composite Policy Index

0.00

15.00

30.00

45.00

-15.00

-30.00

Ret

urn

1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 2019 2018 2017

-9.96 -9.96

-1.07

4.15 4.42

18.41

-2.97

13.29

-13.73 -13.73

-5.76

2.98 3.89

20.28

-5.81

17.15

Gain / Loss1 Qtr YTD 1 Yr 3 Yrs 5 Yrs

Total Fund Composite

Beginning Market Value 44,963,147 44,963,147 42,269,442 36,895,092 34,460,578

Net Cash Flows 850,001 850,001 -360,934 -665,530 -1,831,164

Income 47,829 47,829 178,648 654,991 1,007,186

Gain/Loss -6,378,191 -6,378,191 -2,604,369 2,598,233 5,846,186

Ending Market Value 39,482,786 39,482,786 39,482,786 39,482,786 39,482,786

Kent County Employees Pension

Total Fund Composite As of March 31, 2020

10

Target Allocation Actual Allocation Allocation Differences

0.0% 15.0% 30.0% 45.0% 60.0%-15.0 %-30.0 %

Total Fixed Income Composite$12,905,493

GTAA Composite$3,837,899

Real Estate Composite$1,980,198

Emerging Markets Equity Composite$878,505

International Equity Composite$3,096,174

Domestic Equity Composite$16,783,883

33.5%

10.0%

4.0%

2.5%

10.0%

40.0%

32.7%

9.7%

5.0%

2.2%

7.8%

42.5%

-0.8 %

-0.3 %

1.0%

-0.3 %

-2.2 %

2.5%

AssetAllocation

($)

AssetAllocation

(%)

TargetAllocation

(%)Differences

(%)

MinimumAllocation

(%)

MaximumAllocation

(%)

Total Fund Composite 39,482,786 100.00 100.00 0.00 N/A N/A

Domestic Equity Composite 16,783,883 42.51 40.00 2.51 30.00 50.00

International Equity Composite 3,096,174 7.84 10.00 -2.16 5.00 15.00

Emerging Markets Equity Composite 878,505 2.23 2.50 -0.27 0.00 5.00

Real Estate Composite 1,980,198 5.02 4.00 1.02 0.00 8.00

GTAA Composite 3,837,899 9.72 10.00 -0.28 5.00 15.00

Total Fixed Income Composite 12,905,493 32.69 33.50 -0.81 20.00 47.00



11

Total Fund

($) %

Total Fund Composite 39,482,786 100.00

Domestic Equity Composite 16,783,883 42.51

Wedge Capital 7,237,437 18.33

Intech 9,546,446 24.18

International Equity Composite 3,096,174 7.84

AQR International Equity Fund II 3,096,174 7.84

Emerging Markets Equity Composite 878,505 2.23

RCTS Emerging Markets Equity 878,505 2.23

Total Fixed Income Composite 12,905,493 32.69

Segal Marco Fixed Income Group Trust 12,905,493 32.69

Real Estate Composite 1,980,198 5.02

Principal US Property Account 1,980,198 5.02

GTAA Composite 3,837,899 9.72

Invesco 3,837,899 9.72


Asset Allocation As of March 31, 2020

12

Allocation

Market Value($000) %

Performance (%)

1Quarter

Year ToDate

Jul-2019To

Mar-20201

Year3

Years5

Years7

Years10

YearsSince

InceptionInception

Date

Total Fund Composite 39,483 100.00 -13.73 -13.73 -8.98 -5.76 2.98 3.89 6.21 7.32 9.19 01/01/1986

Policy Index -9.96 -9.96 -4.31 -1.07 4.15 4.42 5.99 6.99 8.54

Domestic Equity Composite 16,784 42.51 -20.14 -20.14 -13.73 -9.03 4.68 6.12 9.42 10.57 10.42 01/01/1986

S&P 500 -19.60 -19.60 -10.82 -6.98 5.10 6.73 9.62 10.53 10.06

Wedge Capital 7,237 18.33 -26.57 -26.57 -20.91 -16.92 -0.65 2.48 7.11 8.92 7.28 10/01/2004

Russell 1000 Value Index -26.73 -26.73 -20.24 -17.17 -2.18 1.90 5.56 7.67 5.91

Intech 9,546 24.18 -14.48 -14.48 -7.36 -1.97 9.62 9.51 11.55 12.08 9.10 12/01/2003

Russell 1000 Growth Index -14.10 -14.10 -3.56 0.91 11.32 10.36 12.93 12.97 9.22

International Equity Composite 3,096 7.84 -26.83 -26.83 -22.00 -21.52 -5.99 -2.65 0.17 1.27 -2.73 01/01/2008

MSCI EAFE (Net) -22.83 -22.83 -17.42 -14.38 -1.82 -0.62 1.75 2.72 -0.13

AQR International Equity Fund II 3,096 7.84 -26.83 -26.83 -22.00 -21.52 N/A N/A N/A N/A -9.54 01/01/2019

MSCI EAFE (Net) -22.83 -22.83 -17.42 -14.38 -1.82 -0.62 1.75 2.72 -4.70

Emerging Markets Equity Composite 879 2.23 -23.02 -23.02 -16.93 -15.01 N/A N/A N/A N/A -10.23 03/01/2018

MSCI EM (net) -23.60 -23.60 -18.18 -17.69 -1.62 -0.37 -0.40 0.69 -13.01

RCTS Emerging Markets Equity - RBC/Wells 879 2.23 -23.02 -23.02 -16.93 -15.01 N/A N/A N/A N/A -10.23 03/01/2018

MSCI EM (net) -23.60 -23.60 -18.18 -17.69 -1.62 -0.37 -0.40 0.69 -13.01

Total Fixed Income Composite 12,905 32.69 -1.35 -1.35 0.47 3.16 2.64 2.07 2.25 3.29 3.88 01/01/2008

Blmbg. Barc. U.S. Aggregate 3.15 3.15 5.68 8.93 4.82 3.36 3.19 3.88 4.23

Segal Marco Fixed Income Group Trust 12,905 32.69 -1.35 -1.35 0.47 3.16 N/A N/A N/A N/A 4.84 01/01/2019

Blmbg. Barc. U.S. Aggregate 3.15 3.15 5.68 8.93 4.82 3.36 3.19 3.88 9.60

FIGT Stylized Index 0.85 0.85 3.07 5.90 3.86 2.95 2.60 N/A 7.00


Comparative Performance As of March 31, 2020

13



Allocation

Market Value($000) %

Performance (%)

1Quarter

Year ToDate

Jul-2019To

Mar-20201

Year3

Years5

Years7

Years10

YearsSince

InceptionInception

Date

Real Estate Composite 1,980 5.02 0.34 0.34 3.21 4.51 N/A N/A N/A N/A 6.08 04/01/2018

NCREIF ODCE Equal Weighted 0.97 0.97 3.94 5.33 7.07 8.75 10.04 11.52 6.53

Principal US Property Account 1,980 5.02 0.34 0.34 3.21 4.51 N/A N/A N/A N/A 6.08 04/01/2018

NCREIF ODCE Equal Weighted 0.97 0.97 3.94 5.33 7.07 8.75 10.04 11.52 6.53

GTAA Composite 3,838 9.72 -11.54 -11.54 -7.69 -5.39 1.59 2.55 N/A N/A 3.41 05/01/2014

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate -11.74 -11.74 -5.89 -2.25 3.73 3.90 N/A N/A 4.19

Invesco 3,838 9.72 -11.54 -11.54 -7.69 -5.39 1.59 2.55 N/A N/A 3.41 05/01/2014

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate -11.74 -11.74 -5.89 -2.25 3.73 3.90 N/A N/A 4.19

90 Day U.S. Treasury Bill 0.58 0.58 1.61 2.25 1.83 1.17 0.85 0.62 0.99

14

Performance (%)

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Total Fund Composite 20.28 -5.81 17.15 7.34 0.77 7.37 21.93 11.29 2.25 13.55

Policy Index 18.41 -2.97 13.29 6.51 0.99 7.96 16.70 11.50 3.18 11.45

Domestic Equity Composite 32.39 -7.78 25.82 9.90 2.09 11.64 34.74 14.97 2.09 17.81

S&P 500 31.49 -4.38 21.83 11.96 1.38 13.69 32.39 16.00 2.11 15.06

Wedge Capital 29.71 -11.90 21.64 13.81 0.05 13.55 35.53 15.14 1.97 18.05

Russell 1000 Value Index 26.54 -8.27 13.66 17.34 -3.83 13.45 32.53 17.51 0.39 15.51

Intech 34.84 -3.65 30.50 5.90 4.24 10.06 33.94 14.79 2.22 17.58

Russell 1000 Growth Index 36.39 -1.51 30.21 7.08 5.67 13.05 33.48 15.26 2.64 16.71

International Equity Composite 20.52 -18.95 24.96 2.13 0.65 -6.62 23.03 14.98 -16.45 12.15

MSCI EAFE (Net) 22.01 -13.79 25.03 1.00 -0.81 -4.90 22.78 17.32 -12.14 7.75

AQR International Equity Fund II 20.57 N/A N/A N/A N/A N/A N/A N/A N/A N/A

MSCI EAFE (Net) 22.01 -13.79 25.03 1.00 -0.81 -4.90 22.78 17.32 -12.14 7.75

Emerging Markets Equity Composite 22.07 N/A N/A N/A N/A N/A N/A N/A N/A N/A

MSCI EM (net) 18.44 -14.58 37.28 11.19 -14.92 -2.19 -2.60 18.23 -18.42 18.88

RCTS Emerging Markets Equity - RBC/Wells 22.07 N/A N/A N/A N/A N/A N/A N/A N/A N/A

MSCI EM (net) 18.44 -14.58 37.28 11.19 -14.92 -2.19 -2.60 18.23 -18.42 18.88

Total Fixed Income Composite 7.44 -0.78 3.65 3.03 0.13 6.01 -2.13 4.62 7.93 6.92

Blmbg. Barc. U.S. Aggregate 8.72 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54

Segal Marco Fixed Income Group Trust 7.54 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Blmbg. Barc. U.S. Aggregate 8.72 0.01 3.54 2.65 0.55 5.97 -2.02 4.21 7.84 6.54

FIGT Stylized Index 7.90 -0.09 4.03 3.44 -0.23 4.14 -1.70 4.87 7.79 N/A



15



Performance (%)

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Real Estate Composite 5.84 N/A N/A N/A N/A N/A N/A N/A N/A N/A

NCREIF ODCE Equal Weighted 6.08 8.25 7.80 9.27 15.17 12.38 13.36 11.03 15.96 16.14

Principal US Property Account 5.84 N/A N/A N/A N/A N/A N/A N/A N/A N/A

NCREIF ODCE Equal Weighted 6.08 8.25 7.80 9.27 15.17 12.38 13.36 11.03 15.96 16.14

GTAA Composite 16.10 -5.48 10.96 12.62 -3.15 N/A N/A N/A N/A N/A

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate 20.42 -4.76 14.90 6.09 0.26 N/A N/A N/A N/A N/A

Invesco 16.10 -5.48 10.96 12.62 -3.15 N/A N/A N/A N/A N/A

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate 20.42 -4.76 14.90 6.09 0.26 N/A N/A N/A N/A N/A

90 Day U.S. Treasury Bill 2.28 1.87 0.86 0.25 0.03 0.04 0.05 0.08 0.08 0.13

16

Total Fund Performance

-20.0 % -15.0 % -10.0 % -5.0 % 0.0%

Total Fund

Total Fund Benchmark

Total Value Added

-13.7 %

-10.0 %

-3.8 %

Total Value Added:-3.8 %

0.0% 2.0%-2.0 %-4.0 %-6.0 %

Other

Manager Value Added

Asset Allocation

0.1%

-3.0 %

-0.9 %

Total Asset Allocation:-0.9 %

Average Active Weight

0.0% 6.0% 12.0%-6.0 %-12.0 %

Real Estate Composite

Emerging Markets Equity Composite

GTAA Composite

Domestic Equity Composite

Total Fixed Income Composite

International Equity Composite

We

igh

t

(%)

0.4%

-0.1 %

-0.5 %

5.8%

-4.7 %

-1.0 %

Asset Allocation Value Added

0.0% 0.4% 0.8%-0.4 %-0.8 %

0.0%

0.0%

-0.1 %

-0.5 %

-0.5 %

0.1%

Total Manager Value Added:-3.0 %

Manager Value Added

0.0% 0.8%-0.8 %-1.6 %-2.4 %

0.0%

0.0%

-1.1 %

-0.2 %

-1.3 %

-0.4 %


Total Fund Attribution 1 Quarter Ending March 31, 2020

17

-28.0

-22.0

-16.0

-10.0

-4.0

2.0

8.0

14.0

20.0

Ret

urn

1 Qtr YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs

Total Fund Composite -13.73 (59) -13.73 (59) -5.76 (66) 2.98 (41) 3.89 (29) 6.21 (11) 7.32 (7)¢£

Policy Index -9.96 (12) -9.96 (12) -1.07 (8) 4.15 (7) 4.42 (9) 5.99 (16) 6.99 (15)��

5th Percentile -7.01 -7.01 0.25 4.29 4.72 6.61 7.45

1st Quartile -12.17 -12.17 -3.52 3.37 3.97 5.74 6.75

Median -13.44 -13.44 -5.03 2.83 3.46 5.20 6.32

3rd Quartile -14.94 -14.94 -6.45 2.21 2.98 4.71 5.79

95th Percentile -16.69 -16.69 -8.52 1.17 2.08 3.04 4.50


All Public Plans < $1B-Total Fund As of March 31, 2020

Parentheses contain percentile rankings.Calculation based on monthly periodicity.

18

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

36.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Total Fund Composite 20.28 (30) -5.81 (85) 17.15 (15) 7.34 (51) 0.77 (26) 7.37 (38) 21.93 (4)¢£

Policy Index 18.41 (62) -2.97 (17) 13.29 (79) 6.51 (70) 0.99 (19) 7.96 (27) 16.70 (51)��

5th Percentile 22.40 -1.07 18.90 9.98 2.06 10.28 21.73

1st Quartile 20.52 -3.44 16.47 8.38 0.81 8.02 18.86

Median 19.19 -4.46 15.19 7.35 -0.25 6.84 16.71

3rd Quartile 17.07 -5.26 13.63 6.24 -1.51 5.35 13.76

95th Percentile 10.51 -6.89 6.71 4.56 -3.61 2.79 6.59


All Public Plans < $1B-Total Fund As of March 31, 2020


19

Risk & Return Plan Sponsor — 3 Years Risk & Return Plan Sponsor — 5 Years

Rolling Return and Tracking Error

-3.0

0.0

3.0

6.0

9.0

Ret

urn

(%)

-8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0

Risk (Standard Deviation %)

ReturnStandardDeviation

Total Fund Composite 2.98 12.25¢£

Policy Index 4.15 9.38��

Median 2.83 11.57¾

-3.0

0.0

3.0

6.0

9.0

Ret

urn

(%)

-3.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0

Risk (Standard Deviation %)

ReturnStandardDeviation

Total Fund Composite 3.89 10.03¢£

Policy Index 4.42 7.78��

Median 3.46 9.65¾

Rolling 3 Yrs Active Return Rolling Tracking Error Active Return

0.0

4.0

8.0

-4.0

-8.0

Act

ive

R

etur

n (%

)

3/86 9/87 3/89 9/90 3/92 9/93 3/95 9/96 3/98 9/99 3/01 9/02 3/04 9/05 3/07 9/08 3/10 9/11 3/13 9/14 3/16 9/17 3/20



20

Policy Index Weight (%)

Jan-1986

S&P 500 60.00

Blmbg. Barc. U.S. Aggregate 40.00

Dec-2007

S&P 500 50.00


MSCI EAFE (Net) 10.00

May-2014

S&P 500 45.00



90 Day U.S. Treasury Bill 10.00

Mar-2018

S&P 500 40.00




NCREIF ODCE Equal Weighted 4.00

ICE BofAML High Yield Master II 3.50

MSCI EM (net) 2.50

Jan-2019

S&P 500 40.00




NCREIF ODCE Equal Weighted 4.00

MSCI EM (net) 2.50


Policy Index As of March 31, 2020

21

Periods Ending

BeginningMarket Value

($)

NetCash Flow

($)Gain/Loss

($)

EndingMarket Value

($) %Return

From 03/1986 3,365,263 36,703 185,760 3,587,726 5.54

1987 3,587,726 24,206 428,275 4,040,207 11.99

1988 4,040,207 2,717 416,802 4,459,726 10.30

1989 4,459,726 22,938 980,356 5,463,020 21.99

1990 5,463,020 -66,673 268,319 5,664,666 5.03

1991 5,664,666 -61,812 1,807,087 7,409,941 32.11

1992 7,409,941 169,244 316,381 7,895,566 4.82

1993 7,895,566 198,377 750,278 8,844,221 12.26

1994 8,844,221 210,135 -426,913 8,627,443 0.10

1995 8,627,443 22,723 2,554,880 11,205,046 32.39

1996 11,205,046 -294,510 2,370,740 13,281,276 21.52

1997 13,281,276 -279,464 3,857,814 16,859,626 28.75

1998 16,859,626 -420,721 4,177,705 20,616,610 25.16

1999 20,616,610 -564,182 1,493,156 21,545,584 7.37

2000 21,545,584 -1,072,982 -279,684 20,192,918 -1.33

2001 20,192,918 -629,257 -2,061,208 17,502,453 -9.55

2002 17,502,453 -838,851 -2,369,207 14,294,395 -13.90

2003 14,294,395 -815,580 2,675,995 16,154,810 19.43

2004 16,154,810 -290,152 1,483,900 17,348,558 9.34

2005 17,348,558 1,545,481 1,510,682 20,404,721 8.18

2006 20,404,721 -61,944 1,948,411 22,291,188 9.47

2007 22,291,188 852,064 1,482,485 24,625,737 6.68

2008 24,625,737 -1,204,010 -5,127,069 18,294,658 -21.39

2009 18,294,658 -290,644 3,244,167 21,248,181 17.58

2010 21,248,181 156,518 2,991,146 24,395,845 13.55

2011 24,395,845 -446,457 501,620 24,451,008 2.25

2012 24,451,008 -541,067 2,769,159 26,679,100 11.29

2013 26,679,100 -617,572 5,807,736 31,869,264 21.93

2014 31,869,264 -949,956 2,355,101 33,274,409 7.37

2015 33,274,409 -574,206 272,914 32,973,117 0.77


Schedule of Investable Assets Since Inception Ending March 31, 2020

Gain/Loss includes income received and change in accrued income for the period.

22


Schedule of Investable Assets Since Inception Ending March 31, 2020

Periods Ending

BeginningMarket Value

($)

NetCash Flow

($)Gain/Loss

($)

EndingMarket Value

($) %Return

2016 32,973,117 -636,911 2,443,419 34,779,626 7.34

2017 34,779,626 -462,776 5,967,544 40,284,394 17.15

2018 40,284,394 -130,408 -2,403,487 37,750,498 -5.81

2019 37,750,498 -484,490 7,697,138 44,963,147 20.28

To 03/2020 44,963,147 850,001 -6,330,362 39,482,786 -13.73

3,365,263 -7,643,517 43,761,040 39,482,786 1,676.28

Gain/Loss includes income received and change in accrued income for the period.

23

Investment Manager Performance

24


25


Performance




Net Cash Flows -14,118 -14,118 -52,741 -5,649,940 -5,736,424

Income 47,829 47,829 178,648 654,991 1,007,186

Gain/Loss -4,281,692 -4,281,692 -1,840,836 2,129,377 4,682,066



0.0

3.0

6.0

9.0

-3.0

-6.0

Act

ive

R

etur

n (%

)

3/86 9/87 3/89 9/90 3/92 9/93 3/95 9/96 3/98 9/99 3/01 9/02 3/04 9/05 3/07 9/08 3/10 9/11 3/13 9/14 3/16 9/17 3/20


Domestic Equity Composite -20.14 -20.14 -9.03 4.68 6.12 9.42 10.57

S&P 500 -19.60 -19.60 -6.98 5.10 6.73 9.62 10.53

Difference -0.54 -0.54 -2.05 -0.42 -0.61 -0.20 0.04


Domestic Equity Composite As of March 31, 2020

26

-50.0

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Ret

urn


Domestic Equity Composite -20.14 (50) -20.14 (50) -9.03 (58) 4.68 (39) 6.12 (38) 9.42 (40) 10.57 (34)¢£

S&P 500 -19.60 (43) -19.60 (43) -6.98 (36) 5.10 (31) 6.73 (23) 9.62 (36) 10.53 (40)��

5th Percentile -14.09 -14.09 -1.55 8.60 8.69 11.14 12.00

1st Quartile -18.32 -18.32 -6.38 5.42 6.60 9.78 10.75

Median -20.15 -20.15 -8.36 4.05 5.65 9.19 10.30

3rd Quartile -21.56 -21.56 -11.48 1.97 4.36 8.19 9.48

95th Percentile -26.70 -26.70 -16.50 -0.99 2.06 5.07 6.89


IM U.S. Large Cap Core Equity (SA+CF) As of March 31, 2020

Parentheses contain percentile rankings.Calculation based on quarterly periodicity.

27

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Domestic Equity Composite 32.39 (25) -7.78 (83) 25.82 (13) 9.90 (59) 2.09 (40) 11.64 (72) 34.74 (35)¢£

S&P 500 31.49 (35) -4.38 (37) 21.83 (51) 11.96 (34) 1.38 (52) 13.69 (44) 32.39 (59)��

5th Percentile 35.48 0.33 28.27 18.68 6.97 18.47 41.41

1st Quartile 32.28 -3.57 23.92 12.68 3.39 15.21 35.68

Median 29.96 -5.16 21.84 10.54 1.42 13.42 32.98

3rd Quartile 27.03 -6.90 19.77 8.67 -0.88 11.31 30.59

95th Percentile 19.66 -10.67 13.05 4.18 -5.28 7.31 22.12


IM U.S. Large Cap Core Equity (SA+CF) As of March 31, 2020


28


Performance


Wedge Capital


Net Cash Flows - - - -2,899,508 -2,899,508

Income 47,829 47,829 178,648 654,991 1,007,186

Gain/Loss -2,666,204 -2,666,204 -1,652,592 -546,968 428,441



0.0

4.0

8.0

12.0

-4.0

-8.0

Act

ive

R

etur

n (%

)

12/04 9/05 6/06 3/07 12/07 9/08 6/09 3/10 12/10 9/11 6/12 3/13 12/13 9/14 6/15 3/16 12/16 9/17 6/18 3/19 3/20


Wedge Capital -26.57 -26.57 -16.92 -0.65 2.48 7.11 8.92

Russell 1000 Value Index -26.73 -26.73 -17.17 -2.18 1.90 5.56 7.67

Difference 0.16 0.16 0.25 1.53 0.58 1.55 1.25


Wedge Capital As of March 31, 2020

29

-50.0

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

Ret

urn


Wedge Capital -26.57 (55) -26.57 (55) -16.92 (55) -0.65 (46) 2.48 (48) 7.11 (31) 8.92 (30)¢£

Russell 1000 Value Index -26.73 (57) -26.73 (57) -17.17 (58) -2.18 (64) 1.90 (57) 5.56 (61) 7.67 (61)��

5th Percentile -18.19 -18.19 -4.35 5.26 6.85 9.79 11.00

1st Quartile -23.19 -23.19 -12.36 1.60 3.78 7.47 9.29

Median -26.23 -26.23 -16.12 -1.09 2.32 6.14 8.02

3rd Quartile -29.25 -29.25 -20.31 -3.79 0.71 4.87 7.20

95th Percentile -34.12 -34.12 -27.50 -7.56 -2.39 2.90 5.21


IM U.S. Large Cap Value Equity (SA+CF) As of March 31, 2020


30

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Wedge Capital 29.71 (25) -11.90 (81) 21.64 (16) 13.81 (57) 0.05 (28) 13.55 (32) 35.53 (40)¢£

Russell 1000 Value Index 26.54 (54) -8.27 (50) 13.66 (88) 17.34 (26) -3.83 (69) 13.45 (35) 32.53 (62)��

5th Percentile 35.76 -1.94 24.98 22.62 4.23 16.75 43.98

1st Quartile 29.71 -5.24 20.16 17.59 0.12 14.06 37.67

Median 27.28 -8.31 17.24 14.52 -2.25 12.14 33.95

3rd Quartile 24.48 -11.42 15.12 11.29 -4.74 10.30 31.07

95th Percentile 20.64 -15.85 10.65 6.60 -9.63 5.18 24.84


IM U.S. Large Cap Value Equity (SA+CF) As of March 31, 2020


31

-20.0

-12.0

-4.0

4.0

12.0 Return

5.0

10.0

15.0

20.0

25.0

30.0

StandardDeviation

-4.0

0.0

4.0

8.0

12.0

TrackingError

3Years

5Years

3Years

5Years

3Years

5Years

Wedge Capital -0.65 2.48 21.67 17.74 3.94 3.66¢£

Russell 1000 Value Index -2.18 1.90 19.56 16.29 0.00 0.00��

Median -1.09 2.32 19.98 16.65 3.66 4.02

Up Market Capture

0.0

50.0

100.0

150.0

3Years

5Years

Time Periods

109.1 104.0

Down Market Capture

0.0

50.0

100.0

150.0

3Years

5Years

Time Periods

100.1 100.4

Style History Mar-2020 Average Style Exposure

Cap

ital

izat

ion

Manager Style

Russell 1000 Growth Index

Russell 2000 Growth IndexRussell 2000 Value Index

Russell 1000 Value Index



32

Top Ten Equity HoldingsPortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

US Foods Holding Corp 1.48 0.04 1.44 -57.72

Tempur Sealy International Inc 1.47 0.00 1.47 -49.79

Microsoft Corp 1.44 0.00 1.44 0.28

NVIDIA Corporation 1.41 0.00 1.41 12.10

Cerner Corp 1.36 0.00 1.36 -14.17

Intel Corp 1.36 2.22 -0.86 -9.13

Deckers Outdoor Corp 1.36 0.00 1.36 -20.64

Tyson Foods Inc. 1.35 0.16 1.19 -36.05

Humana Inc. 1.34 0.23 1.11 -14.15

Apple Inc 1.34 0.00 1.34 -13.19

% of Portfolio 13.91 2.65 11.26

Portfolio CharacteristicsPortfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 73,681,424,398 106,202,953,446

Median Mkt. Cap ($) 12,522,335,805 6,533,210,160

Price/Earnings ratio 10.96 12.61

Price/Book ratio 3.09 2.12

5 Yr. EPS Growth Rate (%) 16.81 8.66

Current Yield (%) 2.64 3.51

Beta (5 Years, Monthly) 1.04 1.00

Number of Stocks 132 765

Distribution of Market Capitalization (%)

Wedge Capital Russell 1000 Value Index

0.0

15.0

30.0

45.0

60.0

>100 Bil 75 Bil - 100 Bil

25 Bil - 75 Bil

15 Bil - 25 Bil

2 Bil - 15 Bil

0 - 2 Bil

36.7

6.0

25.4

10.5

20.4

0.9

15.5

1.5

19.7

15.2

45.9

2.2

Sector Weights (%)

Wedge Capital Russell 1000 Value Index

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Utilities

Real Estate

Materials

Information Technology

Industrials

Health Care

Financials

Energy

Consumer Staples

Consumer Discretionary

Communication Services

4.7

0.0

2.4

26.8

8.2

12.4

14.9

2.4

9.7

17.2

1.2

7.8

5.1

4.2

6.8

9.5

15.5

21.3

5.4

10.6

5.2

8.6



33

Ten Best PerformersPortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

NVIDIA Corporation 1.41 0.00 1.41 12.10

T-Mobile US Inc 0.61 0.12 0.49 6.99

Biogen Inc 1.21 0.35 0.86 6.62

Akamai Technologies Inc 1.20 0.01 1.19 5.92

AmerisourceBergen Corp 1.15 0.00 1.15 4.56

DaVita Inc 1.18 0.06 1.12 1.37

Microsoft Corp 1.44 0.00 1.44 0.28

General Mills Inc. 1.03 0.31 0.72 -0.55

McKesson Corp 1.27 0.19 1.08 -1.93

Dollar General Corporation 1.10 0.02 1.08 -2.99

% of Portfolio 11.60 1.06 10.54

Ten Worst PerformersPortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Marathon Oil Corp 0.18 0.03 0.15 -75.66

Helmerich & Payne Inc. 0.21 0.02 0.19 -64.98

United Airlines Holdings Inc 0.37 0.05 0.32 -64.18

CIT Group Inc 0.58 0.01 0.57 -61.90

US Foods Holding Corp 1.48 0.04 1.44 -57.72

Discover Financial Services 0.65 0.07 0.58 -57.70

Lincoln National Corp 0.78 0.05 0.73 -55.10

Synchrony Financial 0.62 0.07 0.55 -55.02

Citizens Financial Group Inc 0.67 0.08 0.59 -53.21

RH 1.21 0.00 1.21 -52.94

% of Portfolio 6.75 0.42 6.33



34

Buy-and-Hold Portfolio -26.87

Portfolio Trading 0.31

Actual Return -26.57

Benchmark Return -26.73

Actual Active Return 0.16

Stock Selection -1.17

Sector Selection 1.22

Interaction -0.20

Total Selection -0.15


Benchmark Trading -0.01

Active Trading Impact 0.32

Buy & Hold Active Return 0.16

Allocation — 01/01/2020

Portfolio Benchmark

Performance — 1 Quarter Ending March31, 2020

Portfolio Benchmark

Attribution

Stock Sector Interaction Total

Communication Services 1.09 8.15 -1.99 -22.57 1.68 -0.29 -1.45 -0.07

Consumer Discretionary 16.30 5.88 -34.84 -35.49 0.04 -0.91 0.07 -0.81

Consumer Staples 5.87 8.87 -9.94 -12.45 0.22 -0.43 -0.08 -0.28

Energy 4.65 8.21 -55.38 -51.24 -0.34 0.87 0.15 0.68

Financials 17.34 23.88 -43.60 -34.32 -2.22 0.50 0.61 -1.11

Health Care 14.41 12.95 -10.25 -12.47 0.29 0.21 0.03 0.53

Industrials 8.55 9.69 -31.06 -28.53 -0.25 0.02 0.03 -0.20

Information Technology 25.19 6.27 -18.30 -19.28 0.06 1.41 0.18 1.65

Materials 2.51 4.31 -34.08 -29.07 -0.22 0.04 0.09 -0.08

Real Estate 0.00 5.17 0.00 -29.18 0.00 0.13 0.00 0.13

Utilities 4.08 6.61 -20.87 -14.18 -0.44 -0.32 0.17 -0.59

Total 100.00 100.00 -26.87 -26.72 -1.17 1.22 -0.20 -0.15


Wedge Capital 1 Quarter Ending March 31, 2020

35


Performance


Intech


Net Cash Flows -14,118 -14,118 -52,741 -2,750,432 -2,836,916

Income - - - - -

Gain/Loss -1,615,488 -1,615,488 -188,244 2,676,345 4,253,625



0.0

3.0

6.0

9.0

-3.0

-6.0

-9.0

Act

ive

R

etur

n (%

)

3/04 12/04 9/05 6/06 3/07 12/07 9/08 6/09 3/10 12/10 9/11 6/12 3/13 12/13 9/14 6/15 3/16 12/16 9/17 6/18 3/19 3/20


Intech -14.48 -14.48 -1.97 9.62 9.51 11.55 12.08

Russell 1000 Growth Index -14.10 -14.10 0.91 11.32 10.36 12.93 12.97

Difference -0.38 -0.38 -2.88 -1.70 -0.85 -1.38 -0.89


Intech As of March 31, 2020

36

-36.0

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

36.0

Ret

urn


Intech -14.48 (50) -14.48 (50) -1.97 (54) 9.62 (54) 9.51 (41) 11.55 (63) 12.08 (57)¢£

Russell 1000 Growth Index -14.10 (47) -14.10 (47) 0.91 (30) 11.32 (38) 10.36 (30) 12.93 (32) 12.97 (34)��

5th Percentile -9.81 -9.81 4.21 16.28 13.06 15.31 14.75

1st Quartile -12.43 -12.43 1.44 12.78 10.70 13.44 13.19

Median -14.50 -14.50 -1.52 9.97 8.99 12.15 12.35

3rd Quartile -17.19 -17.19 -4.73 7.69 7.55 10.79 11.27

95th Percentile -20.92 -20.92 -9.01 3.15 4.63 8.06 9.33


IM U.S. Large Cap Growth Equity (SA+CF) As of March 31, 2020


37

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Intech 34.84 (39) -3.65 (74) 30.50 (36) 5.90 (41) 4.24 (57) 10.06 (70) 33.94 (57)¢£

Russell 1000 Growth Index 36.39 (26) -1.51 (55) 30.21 (38) 7.08 (27) 5.67 (45) 13.05 (39) 33.48 (59)��

5th Percentile 41.06 6.60 37.37 12.47 12.93 17.80 45.22

1st Quartile 36.51 1.68 32.40 7.37 7.96 14.38 37.46

Median 33.81 -0.93 28.16 4.70 4.88 11.99 34.52

3rd Quartile 30.88 -3.79 24.74 1.80 1.99 9.63 31.29

95th Percentile 24.85 -8.64 16.35 -2.63 -3.08 5.89 26.93


IM U.S. Large Cap Growth Equity (SA+CF) As of March 31, 2020


38

-4.0

2.0

8.0

14.0

20.0

26.0 Return

8.0

11.0

14.0

17.0

20.0

23.0

StandardDeviation

-4.0

-1.0

2.0

5.0

8.0

11.0

TrackingError

3Years

5Years

3Years

5Years

3Years

5Years

Intech 9.62 9.51 14.40 13.05 3.25 3.05¢£

Russell 1000 Growth Index 11.32 10.36 15.18 13.86 0.00 0.00��

Median 9.97 8.99 15.30 14.05 3.82 3.86

Up Market Capture

0.0

50.0

100.0

150.0

3Years

5Years

Time Periods

87.3 89.1

Down Market Capture

0.0

50.0

100.0

150.0

3Years

5Years

Time Periods

88.3 87.0

Style History Mar-2020 Average Style Exposure

Cap

ital

izat

ion

Manager Style

Russell 1000 Growth Index

Russell 2000 Growth IndexRussell 2000 Value Index

Russell 1000 Value Index



39

Top Ten Equity HoldingsPortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Microsoft Corp 10.25 9.18 1.07 0.28

Apple Inc 6.32 8.07 -1.75 -13.19

Amazon.com Inc 3.83 6.27 -2.44 5.51

Netflix Inc 3.81 1.22 2.59 16.05

Intel Corp 3.64 0.00 3.64 -9.13

AbbVie Inc 3.19 0.87 2.32 -12.80

Oracle Corp 3.15 0.75 2.40 -8.37

Merck & Co Inc. 3.15 1.43 1.72 -14.73

United Technologies Corp 2.97 0.00 2.97 -36.71

Honeywell International Inc 2.97 0.36 2.61 -23.99

% of Portfolio 43.28 28.15 15.13

Portfolio CharacteristicsPortfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 306,294,242,522 375,897,388,930

Median Mkt. Cap ($) 22,995,678,960 9,887,413,690

Price/Earnings ratio 20.61 24.20

Price/Book ratio 5.05 6.67

5 Yr. EPS Growth Rate (%) 18.29 23.83

Current Yield (%) 2.19 1.38

Beta (5 Years, Monthly) 0.92 1.00

Number of Stocks 86 532

Distribution of Market Capitalization (%)

Intech Russell 1000 Growth Index

0.0

20.0

40.0

60.0

80.0

>100 Bil 75 Bil - 100 Bil

25 Bil - 75 Bil

15 Bil - 25 Bil

2 Bil - 15 Bil

0 - 2 Bil

57.2

7.6

16.4

9.1 9.5

0.1

46.9

14.517.8

11.29.6

0.1

Sector Weights (%)

Intech Russell 1000 Growth Index

0.0 8.0 16.0 24.0 32.0 40.0 48.0

Real Estate

Materials

Information Technology

Industrials

Health Care

Financials

Energy

Consumer Staples

Consumer Discretionary

Communication Services

5.1

3.5

37.5

10.2

13.4

4.1

0.5

4.5

12.8

8.6

2.5

1.2

39.8

8.0

15.1

2.9

0.1

4.6

14.1

11.7



40

Ten Best PerformersPortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Netflix Inc 3.81 1.22 2.59 16.05

SBA Communications Corp 0.26 0.23 0.03 12.22

Vertex Pharmaceuticals Inc 0.11 0.47 -0.36 8.68

Amazon.com Inc 3.83 6.27 -2.44 5.51

Progressive Corp (The) 1.17 0.11 1.06 5.30

Crown Castle International Corp 1.06 0.46 0.60 2.44

Microsoft Corp 10.25 9.18 1.07 0.28

Cabot Oil & Gas Corp 0.14 0.03 0.11 -0.62

Tiffany & Co. 0.08 0.00 0.08 -2.66

Colgate-Palmolive Co 0.44 0.00 0.44 -3.02

% of Portfolio 21.15 17.97 3.18

Ten Worst PerformersPortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Apache Corp 0.08 0.00 0.08 -83.54

Discover Financial Services 0.10 0.03 0.07 -57.70

Synchrony Financial 0.09 0.02 0.07 -55.02

Boeing Co 0.69 0.61 0.08 -53.94

Hess Corp 0.24 0.00 0.24 -49.80

Darden Restaurants Inc. 0.24 0.05 0.19 -49.66

Leggett & Platt Inc 0.11 0.00 0.11 -46.80

Sysco Corporation 0.30 0.17 0.13 -46.37

V.F. Corp 1.05 0.13 0.92 -45.32

TransDigm Group Inc 0.96 0.10 0.86 -42.82

% of Portfolio 3.86 1.11 2.75



41

Buy-and-Hold Portfolio -14.89


Actual Return -14.48

Benchmark Return -14.10

Actual Active Return -0.38

Stock Selection 0.35

Sector Selection -0.76

Interaction -0.40

Total Selection -0.81


Benchmark Trading -0.02

Active Trading Impact 0.43

Buy & Hold Active Return -0.38

Allocation — 01/01/2020

Portfolio Benchmark

Performance — 1 Quarter Ending March31, 2020

Portfolio Benchmark

Attribution

Stock Sector Interaction Total

Communication Services 6.57 11.57 -2.47 -13.86 1.32 -0.01 -0.57 0.74

Consumer Discretionary 13.22 13.84 -17.05 -13.47 -0.50 0.00 0.02 -0.48

Consumer Staples 3.36 4.64 -17.89 -14.53 -0.16 0.01 0.04 -0.11

Energy 0.43 0.26 -54.46 -52.85 0.00 -0.07 0.00 -0.07

Financials 5.61 3.12 -15.08 -19.94 0.15 -0.15 0.12 0.13

Health Care 14.75 14.74 -13.31 -12.36 -0.14 0.00 0.00 -0.14

Industrials 11.75 9.27 -29.53 -26.00 -0.33 -0.30 -0.09 -0.71

Information Technology 35.87 38.87 -10.86 -11.41 0.21 -0.08 -0.02 0.12

Materials 4.07 1.34 -15.49 -20.59 0.07 -0.18 0.14 0.03

Real Estate 2.81 2.36 -21.81 -10.09 -0.28 0.02 -0.05 -0.31

Utilities 1.55 0.00 -13.93 0.00 0.00 0.00 0.00 0.00

Total 100.00 100.00 -14.89 -14.08 0.35 -0.76 -0.40 -0.81


Intech 1 Quarter Ending March 31, 2020

42


43


Performance




Net Cash Flows -6,024 -6,024 -23,787 470,643 470,643

Income - - - - -

Gain/Loss -1,136,465 -1,136,465 -849,715 -652,567 -489,758



0.0

6.0

12.0

18.0

-6.0

-12.0

-18.0

Act

ive

R

etur

n (%

)

3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20


International Equity Composite -26.83 -26.83 -21.52 -5.99 -2.65 0.17 1.27

MSCI EAFE (Net) -22.83 -22.83 -14.38 -1.82 -0.62 1.75 2.72

Difference -4.00 -4.00 -7.14 -4.17 -2.03 -1.58 -1.45


International Equity Composite As of March 31, 2020

44

-44.0

-36.0

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

Ret

urn


International Equity Composite -26.83 (95) -26.83 (95) -21.52 (98) -5.99 (97) -2.65 (99) 0.17 (99) 1.27 (100)¢£

MSCI EAFE (Net) -22.83 (56) -22.83 (56) -14.38 (56) -1.82 (63) -0.62 (65) 1.75 (72) 2.72 (87)��

5th Percentile -16.31 -16.31 -7.54 4.54 3.62 5.01 5.70

1st Quartile -21.38 -21.38 -11.68 0.17 1.05 3.31 4.65

Median -22.59 -22.59 -13.80 -1.48 -0.07 2.65 3.95

3rd Quartile -24.32 -24.32 -16.47 -2.78 -0.93 1.72 3.07

95th Percentile -26.98 -26.98 -20.95 -5.32 -1.82 0.98 2.30


IM International Large Cap Core Equity (SA+CF) As of March 31, 2020


45

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

International Equity Composite 20.52 (76) -18.95 (94) 24.96 (73) 2.13 (42) 0.65 (45) -6.62 (88) 23.03 (52)¢£

MSCI EAFE (Net) 22.01 (64) -13.79 (39) 25.03 (71) 1.00 (57) -0.81 (60) -4.90 (65) 22.78 (53)��

5th Percentile 32.03 -9.24 32.63 7.90 7.09 2.52 29.75

1st Quartile 27.05 -12.40 29.60 3.42 2.49 -2.07 25.65

Median 23.88 -14.63 26.49 1.52 0.25 -3.67 23.31

3rd Quartile 20.54 -16.48 24.85 -0.32 -2.72 -5.36 18.90

95th Percentile 16.86 -19.21 20.14 -4.10 -7.95 -8.93 15.28




46


Performance


AQR International Equity Fund II

Beginning Market Value 4,238,663 4,238,663 3,969,676 - -

Net Cash Flows -6,024 -6,024 -23,787 - -

Income - - - - -

Gain/Loss -1,136,465 -1,136,465 -849,715 - -

Ending Market Value 3,096,174 3,096,174 3,096,174 - -


0.0

2.0

4.0

6.0

-2.0

-4.0

-6.0

Act

ive

R

etur

n (%

)

3/19 6/19 9/19 12/19 3/20


AQR International Equity Fund II -26.83 -26.83 -21.52 N/A N/A N/A N/A

MSCI EAFE (Net) -22.83 -22.83 -14.38 -1.82 -0.62 1.75 2.72

Difference -4.00 -4.00 -7.14 N/A N/A N/A N/A


AQR International Equity Fund II As of March 31, 2020

47

-44.0

-36.0

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

Ret

urn


AQR International Equity Fund II -26.83 (95) -26.83 (95) -21.52 (98) N/A N/A N/A N/A¢£

MSCI EAFE (Net) -22.83 (56) -22.83 (56) -14.38 (56) -1.82 (63) -0.62 (65) 1.75 (72) 2.72 (87)��

5th Percentile -16.31 -16.31 -7.54 4.54 3.62 5.01 5.70

1st Quartile -21.38 -21.38 -11.68 0.17 1.05 3.31 4.65

Median -22.59 -22.59 -13.80 -1.48 -0.07 2.65 3.95

3rd Quartile -24.32 -24.32 -16.47 -2.78 -0.93 1.72 3.07

95th Percentile -26.98 -26.98 -20.95 -5.32 -1.82 0.98 2.30




48

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

AQR International Equity Fund II 20.57 (75) N/A N/A N/A N/A N/A N/A¢£

MSCI EAFE (Net) 22.01 (64) -13.79 (39) 25.03 (71) 1.00 (57) -0.81 (60) -4.90 (65) 22.78 (53)��

5th Percentile 32.03 -9.24 32.63 7.90 7.09 2.52 29.75

1st Quartile 27.05 -12.40 29.60 3.42 2.49 -2.07 25.65

Median 23.88 -14.63 26.49 1.52 0.25 -3.67 23.31

3rd Quartile 20.54 -16.48 24.85 -0.32 -2.72 -5.36 18.90

95th Percentile 16.86 -19.21 20.14 -4.10 -7.95 -8.93 15.28




49

Emerging Markets Equity Composite

50


Performance


RCTS Emerging Markets Equity


Net Cash Flows - - - - -

Income - - - - -

Gain/Loss -262,751 -262,751 -155,119 - -

Ending Market Value 878,505 878,505 878,505 - -


0.0

0.7

1.4

2.1

2.8

-0.7

-1.4

Act

ive

R

etur

n (%

)

6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20


RCTS Emerging Markets Equity -23.02 -23.02 -15.01 N/A N/A N/A N/A

MSCI EM (net) -23.60 -23.60 -17.69 -1.62 -0.37 -0.40 0.69

Difference 0.58 0.58 2.68 N/A N/A N/A N/A


RCTS Emerging Markets Equity As of March 31, 2020

51

-52.0

-44.0

-36.0

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

Ret

urn


RCTS Emerging Markets Equity -23.02 (29) -23.02 (29) -15.01 (29) N/A N/A N/A N/A¢£

MSCI EM (net) -23.60 (38) -23.60 (38) -17.69 (47) -1.62 (41) -0.37 (47) -0.40 (61) 0.69 (82)��

5th Percentile -18.58 -18.58 -7.63 3.47 3.45 3.61 4.72

1st Quartile -22.76 -22.76 -14.26 0.33 1.36 1.64 3.14

Median -24.85 -24.85 -17.88 -2.47 -0.48 0.27 1.99

3rd Quartile -28.14 -28.14 -23.16 -5.61 -1.90 -1.10 0.87

95th Percentile -32.47 -32.47 -28.58 -8.66 -4.13 -2.54 -0.23


IM Emerging Markets Equity (SA+CF) As of March 31, 2020


52

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

RCTS Emerging Markets Equity 22.07 (40) N/A N/A N/A N/A N/A N/A¢£

MSCI EM (net) 18.44 (61) -14.58 (42) 37.28 (46) 11.19 (44) -14.92 (69) -2.19 (73) -2.60 (75)��

5th Percentile 30.97 -8.98 49.40 23.01 -3.01 9.09 23.59

1st Quartile 25.05 -13.36 41.78 13.62 -9.29 3.08 5.74

Median 19.53 -15.23 36.81 10.35 -12.64 -0.05 1.00

3rd Quartile 15.65 -17.48 30.33 6.37 -15.32 -2.46 -2.65

95th Percentile 7.84 -21.50 24.17 -0.92 -19.06 -7.37 -7.32


IM Emerging Markets Equity (SA+CF) As of March 31, 2020


53


54


Performance




Net Cash Flows 874,050 874,050 -268,759 1,709,922 661,656

Income - - - - -

Gain/Loss -203,261 -203,261 374,009 932,031 1,184,995



0.0

3.0

6.0

-3.0

-6.0

-9.0

Act

ive

R

etur

n (%

)

3/08 9/08 3/09 9/09 3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 9/19 3/20


Total Fixed Income Composite -1.35 -1.35 3.16 2.64 2.07 2.25 3.29

Blmbg. Barc. U.S. Aggregate 3.15 3.15 8.93 4.82 3.36 3.19 3.88

Difference -4.50 -4.50 -5.77 -2.18 -1.29 -0.94 -0.59


Total Fixed Income Composite As of March 31, 2020

55

-10.0

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

Ret

urn


Total Fixed Income Composite -1.35 (93) -1.35 (93) 3.16 (95) 2.64 (98) 2.07 (100) 2.25 (100) 3.29 (100)¢£

Blmbg. Barc. U.S. Aggregate 3.15 (26) 3.15 (26) 8.93 (28) 4.82 (46) 3.36 (70) 3.19 (82) 3.88 (89)��

5th Percentile 5.45 5.45 10.75 5.60 4.06 3.83 4.83

1st Quartile 3.16 3.16 8.98 5.00 3.67 3.56 4.51

Median 1.95 1.95 7.89 4.74 3.46 3.33 4.20

3rd Quartile 0.71 0.71 6.86 4.46 3.32 3.21 3.99

95th Percentile -2.68 -2.68 3.08 3.43 2.96 2.97 3.83


IM U.S. Broad Market Core Fixed Income (SA+CF) As of March 31, 2020


56

-10.0

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Total Fixed Income Composite 7.44 (96) -0.78 (96) 3.65 (74) 3.03 (53) 0.13 (90) 6.01 (63) -2.13 (82)¢£

Blmbg. Barc. U.S. Aggregate 8.72 (77) 0.01 (62) 3.54 (83) 2.65 (75) 0.55 (76) 5.97 (67) -2.02 (72)��

5th Percentile 10.90 1.32 5.27 5.53 1.72 7.85 0.19

1st Quartile 9.70 0.39 4.51 3.82 1.11 6.77 -1.03

Median 9.19 0.06 4.03 3.10 0.82 6.15 -1.59

3rd Quartile 8.75 -0.15 3.63 2.64 0.55 5.82 -2.05

95th Percentile 7.54 -0.71 3.08 2.16 -0.06 4.66 -2.64




57


Performance


Segal Marco Fixed Income Group Trust


Net Cash Flows 874,050 874,050 153,321 - -

Income - - - - -

Gain/Loss -203,261 -203,261 374,009 - -



0.0

2.0

4.0

-2.0

-4.0

-6.0

Act

ive

R

etur

n (%

)

3/19 6/19 9/19 12/19 3/20


Segal Marco Fixed Income Group Trust -1.35 -1.35 3.16 N/A N/A N/A N/A

Blmbg. Barc. U.S. Aggregate 3.15 3.15 8.93 4.82 3.36 3.19 3.88



Segal Marco Fixed Income Group Trust As of March 31, 2020

58

-10.0

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

Ret

urn


Segal Marco Fixed Income Group Trust -1.35 (93) -1.35 (93) 3.16 (95) N/A N/A N/A N/A¢£

Blmbg. Barc. U.S. Aggregate 3.15 (26) 3.15 (26) 8.93 (28) 4.82 (46) 3.36 (70) 3.19 (82) 3.88 (89)��

5th Percentile 5.45 5.45 10.75 5.60 4.06 3.83 4.83

1st Quartile 3.16 3.16 8.98 5.00 3.67 3.56 4.51

Median 1.95 1.95 7.89 4.74 3.46 3.33 4.20

3rd Quartile 0.71 0.71 6.86 4.46 3.32 3.21 3.99

95th Percentile -2.68 -2.68 3.08 3.43 2.96 2.97 3.83




59

-10.0

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Segal Marco Fixed Income Group Trust 7.54 (95) N/A N/A N/A N/A N/A N/A¢£

Blmbg. Barc. U.S. Aggregate 8.72 (77) 0.01 (62) 3.54 (83) 2.65 (75) 0.55 (76) 5.97 (67) -2.02 (72)��

5th Percentile 10.90 1.32 5.27 5.53 1.72 7.85 0.19

1st Quartile 9.70 0.39 4.51 3.82 1.11 6.77 -1.03

Median 9.19 0.06 4.03 3.10 0.82 6.15 -1.59

3rd Quartile 8.75 -0.15 3.63 2.64 0.55 5.82 -2.05

95th Percentile 7.54 -0.71 3.08 2.16 -0.06 4.66 -2.64




60

Real Estate Composite

61


Performance


Principal US Property Account


Net Cash Flows - - - - -

Income - - - - -

Gain/Loss 6,737 6,737 85,535 - -



0.0

0.4

0.8

-0.4

-0.8

-1.2

Act

ive

R

etur

n (%

)

6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20


Principal US Property Account 0.34 0.34 4.51 N/A N/A N/A N/A

NCREIF ODCE Equal Weighted 0.97 0.97 5.33 7.07 8.75 10.04 11.52



Principal US Property Account As of March 31, 2020

62

GTAA Composite

63


Performance


Invesco


Net Cash Flows -3,909 -3,909 -15,712 -46,961 -77,913

Income - - - - -

Gain/Loss -500,759 -500,759 -218,244 180,570 460,421



0.0

4.0

8.0

12.0

-4.0

-8.0

Act

ive

R

etur

n (%

)

9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 3/18 6/18 9/18 12/18 3/19 6/19 9/19 12/19 3/20


Invesco -11.54 -11.54 -5.39 1.59 2.55 N/A N/A

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate -11.74 -11.74 -2.25 3.73 3.90 N/A N/A

Difference 0.20 0.20 -3.14 -2.14 -1.35 N/A N/A


Invesco As of March 31, 2020

64

-36.0

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

Ret

urn


Invesco -11.54 (33) -11.54 (33) -5.39 (45) 1.59 (73) 2.55 (78) N/A N/A¢£

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate -11.74 (34) -11.74 (34) -2.25 (21) 3.73 (10) 3.90 (16) N/A N/A��

5th Percentile -5.24 -5.24 1.57 3.95 4.12 6.53 7.34

1st Quartile -10.12 -10.12 -2.86 3.06 3.69 5.88 7.09

Median -14.70 -14.70 -6.41 2.35 3.30 5.34 6.48

3rd Quartile -19.79 -19.79 -10.01 1.38 2.61 3.92 5.46

95th Percentile -22.01 -22.01 -13.55 -1.73 -0.60 0.02 3.44


IM Global Balanced/TAA (SA+CF+MF) As of March 31, 2020


65

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

36.0

44.0

Ret

urn

2019 2018 2017 2016 2015 2014 2013

Invesco 16.10 (69) -5.48 (45) 10.96 (74) 12.62 (4) -3.15 (86) N/A N/A¢£

60% MSCI World/40% Blmbg. Barc. U.S. Aggregate 20.42 (48) -4.76 (38) 14.90 (54) 6.09 (74) 0.26 (23) N/A N/A��

5th Percentile 26.75 -1.10 21.72 11.98 2.54 10.03 26.28

1st Quartile 24.48 -3.48 19.77 9.40 0.11 7.25 21.30

Median 19.84 -5.90 15.42 8.21 -0.55 6.61 14.78

3rd Quartile 14.95 -7.70 10.84 5.78 -1.57 5.29 6.96

95th Percentile 9.35 -10.01 6.14 1.73 -8.95 -0.70 -3.26


IM Global Balanced/TAA (SA+CF+MF) As of March 31, 2020


66

Policy Index Weight (%)

May-2014

MSCI World 60.00



Invesco Policy Index As of March 31, 2020

67

Fee Analysis

68

Fee AnalysisInvestment Manager Asset Class Market Value Estimated

Annual FeeAnnual Fee

(%)

WEDGE Capital Management, QVM - Large Cap Value US Large Cap Value $7,237,437 $39,806 0.55

INTECH U.S. Large Cap Growth US Large Cap Growth $9,546,446 $49,642 0.52

Invesco Balanced Risk Allocation GTAA $3,837,899 $14,584 0.38

Rogerscasey Target Soluti RCTS Emerging Markets Equity Emerging Markets Core $878,505 $7,994 0.91

Principal Global Investor Principal US Property Account Core (RE) $1,980,198 $21,782 1.10

MCG Group Trust I - Fixed Income Sub Fund Fixed Income $12,905,493 $33,554 0.26

AQR International Equity World ex US International Equity $3,096,174 $18,577 0.60

Cash Account $633$39,482,786 $185,939 0.47

69

Kent County Levy CourtOPEB Cost Sharing Projections

February 20, 2020

© 2017 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd

Table of Contents

• Executive Summary• Forecast Methodology• Forecast Results• Appendix

• Actuarial Certification• Assumptions and Methods• Plan Provisions

2


Executive Summary• Grant Thornton was engaged to review several Other Post Employment Benefit (OPEB) plan

design alternatives and estimate their effects on GASB 75 reporting and funding requirements• This review did not include any effects on health premium pricing or potential participant

behavior changes related to plan design changes• Under the current design, $17.8 million of contributions are expected through 2025 and $56.6

million over the next 15 years through 2040, totaling $74.4 million over the next 20 years.• Alternatives 2, 5B, and 6 generate contribution savings of $0.0–$0.8 million over the 20

year period through 2040. However for alternative 6, these savings are offset by cashcontributions into a defined contribution account.

• Alternative 5C and 5D generates contribution savings of $6.2-$9.7 million over the 20year period through 2040.

• Results contained in this document are intended to be used to make decisions on OPEB plandesign and may not be suitable for other purposes, including financial statement reporting

3


Executive Summary (continued)

4

Scenario

$ in millions

Contributions

2019-2025

Contributions

2026-2040

Total Contributions

Over 20 Years

Total Savings Over 20

Year Period

Baseline $17.8 $56.6 $74.4 -

Alternative 1 17.1 55.1 72.2 ($2.2)

Alternative 2 17.7 56.6 74.3 (0.1)

Alternative 3 16.4 55.1 71.5 (2.9)

Alternative 4A 17.5 54.8 72.3 (2.1)

Alternative 4B 16.7 53.7 70.4 (4.0)

Alternative 5A 16.6 53.7 70.3 (4.1)

Alternative 5B 17.8 56.6 74.4 (0.0)

Alternative 5C 16.0 52.2 68.2 (6.2)

Alternative 5D 15.2 49.6 64.8 (9.7)

Alternative 6 17.0 56.6 73.6 (0.8)


Forecast Methodology Overview• Generated baseline forecast using July 1, 2019 GASB 75 information

• Removed ACA excise tax per December 2019 law change• Forecasted twenty additional valuation dates (July 1, 2020 to July 1, 2040)• Assumed active headcounts remained level through July 1, 2040 valuation

• New actives were assumed to commence employment at age 40• Each valuation date completed on a "closed group" basis consistent with GASB 75

• July 1, 2040 results assume the same active headcount as July 1, 2019, but all projectedyears for the July 1, 2040 results are completed on a closed group basis

• Maintained actuarial valuation assumptions consistent with July 1, 2019 GASB 75 valuation• Since the July 1, 2019 GASB 75 valuation has already been reported, each cost-sharing

scenario is assumed to be reflected in the July 1, 2020 valuation.• The County’s funding policy is the maximum of expected benefit payments or the annual

normal cost plus a 30 year amortization of the unfunded actuarial obligation.• Note due to the County’s budgeting and reporting timing, the annual contribution is

calculated on a one-year lag.

5


Baseline• Current policy: plan is open to new entrants• Pre-65 retirees contribute 7% of premiums, Post-65 retirees contribute 0%, Spouses contribute 20%• Total Actuarially Determined Contribution (ADC) $74.4 M from 2019 through 2040

6

Measurement Date July 1:

$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040

Present Value of Future Benefits $41.7 $45.1 $47.1 $50.8 $52.8 $54.8 $56.8

Total OPEB Liability $35.6 $38.7 $40.7 $43.9 $46.0 $47.9 $49.8

Market Value of Assets $18.3 $20.2 $22.4 $24.6 $26.8 $29.0 $31.2

Funded Status (Deficit)/Asset ($17.3) ($18.5) ($18.3) ($19.3) ($19.2) ($18.9) ($18.6)

Actuarially Determined Contribution

(Preliminary)$2.2 $2.5 $2.6 $2.6 $2.7 $2.7 $2.7 $48.4

Expected Benefit Payments $1.7 $1.8 $2.0 $2.1 $2.3 $2.5 $2.7 $73.4


(Final)$2.2 $2.5 $2.6 $2.6 $2.7 $2.7 $2.7 $74.4

The County’s funding policy is the maximum of expected benefit payments or the annual normal cost plus a 30 yearamortization of the unfunded actuarial obligation. Note due to the County’s budgeting and reporting timing, the annualcontribution is calculated on a one-year lag.


Baseline – Net OPEB Liability

7

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline


Baseline – Actuarial Determined Contribution

8

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Baseline - Final ADC Baseline - Preliminary ADC


Alternative 1• New retirees after 7/1/2019 will have higher contributions• Pre-65 contributions increase to 15%, Post-65 contributions increase to 5%• No change to current contribution rate for spouse or dependent coverage• Net OPEB liability will decrease by about $1.0M from current policy in short term through 2025• Total ADC $72.2 M from 2019 through 2040 ($2.2 M decrease over baseline)

9


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.5 $2.4 $2.6 $2.5 $2.5 $45.8



(Final)$2.2 $2.5 $2.5 $2.4 $2.6 $2.5 $2.5 $72.2



Alternative 1 – Net OPEB Liability

10

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Alternative 1


Alternative 1 – Actuarially Determined Contribution

11

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 1 - Final ADC Alternative 1 Savings Alternative 1 - Preliminary ADC


Alternative 2• New hires after 7/1/2019 will have higher contributions• Pre-65 contributions increase to 15%, Post-65 contributions increase to 5%• No change to current contribution rate for spouse or dependent coverage• Minimal change it the Net OPEB liability from current policy in short term through 2025• Total ADC $74.3 M from 2019 through 2040 ($0.1 M decrease over baseline)

12


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.6 $2.6 $2.7 $2.7 $2.6 $47.6



(Final)$2.2 $2.5 $2.6 $2.6 $2.7 $2.7 $2.6 $74.3




13

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025




14

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040



Alternative 3• New retirees after 7/1/2019 will have higher contributions and new hires after 7/1/2019 are not eligible• Pre-65 contributions increase to 15%, Post-65 contributions increase to 5%• No change to current contribution rate for spouse or dependent coverage• Net OPEB liability will decrease by about $1.4M from current policy in short term through 2025• Total ADC $71.5 M from 2019 through 2040 ($2.9 M decrease over baseline)

15


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.4 $2.3 $2.4 $2.3 $2.2 $28.5



(Final)$2.2 $2.5 $2.4 $2.3 $2.4 $2.3 $2.5 $71.5




16

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025




17

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040



Alternative 4A• 1% cost share for future retirees 65 and older• Pre-65 contributions remain at 7%, Post-65 contributions increase from 0% by 1% annually, up to 7%• No change to current contribution rate for spouse or dependent coverage• Net OPEB liability will decrease by about $800K from current policy in short term through 2025• Total ADC $72.3 M from 2019 through 2040 ($2.1 M decrease over baseline)

18


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.5 $2.5 $2.6 $2.6 $2.6 $45.1



(Final)$2.2 $2.5 $2.5 $2.5 $2.6 $2.6 $2.6 $72.3



Alternative 4A – Net OPEB Liability

19

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Alternative 4A


Alternative 4A – Actuarially Determined Contribution

20

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 4A - Final ADC Alternative 4A Savings Alternative 4A - Preliminary ADC


Alternative 4B• 1% cost share for current and future retirees 65 and older• Pre-65 contributions remain me at 7%, Post-65 contributions increase from 0% by 1% annually, up to 7%• No change to current contribution rate for spouse or dependent coverage• Net OPEB liability will decrease by about $2.0M from current policy in short term through 2025• Total ADC $70.4 M from 2019 through 2040 ($4.0 M decrease over baseline)

21


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.4 $2.3 $2.5 $2.4 $2.4 $44.5



(Final)$2.2 $2.5 $2.4 $2.3 $2.5 $2.4 $2.4 $70.4



Alternative 4B – Net OPEB Liability

22

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Alternative 4B


Alternative 4B – Actuarially Determined Contribution

23

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 4B - Final ADC Alternative 4B Savings Alternative 4B - Preliminary ADC


Alternative 5A• Service-based Sliding Scale of contributions for new hires and non-vested employees as of 7/1/2019• Service-based contributions: 60% with 8 years of service, declining by 5% per year to 0% at 20 years of

service• Contribution schedule more beneficial for those with high service• Net OPEB liability will decrease by about $1.1M from current policy in short term through 2025• Total ADC $70.3 M from 2019 through 2040 ($4.1 M decrease over baseline)

24


$in millions`2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.3 $2.3 $2.4 $2.4 $2.4 $47.2



(Final)$2.2 $2.5 $2.3 $2.3 $2.4 $2.4 $2.4 $70.3



Alternative 5A – Net OPEB Liability

25

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Alternative 5A


Alternative 5A – Actuarially Determined Contribution

26

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 5A - Final ADC Alternative 5A Savings Alternative 5A - Preliminary ADC


Alternative 5B• Service-based Sliding Scale of contributions for new retirees after 7/1/2019• Service-based contributions: 100% with <8 years of service, 50% with 8-14 years, 25% with 15-19 years, 0%

for 20+ years (20% for spouses)• Contribution schedule more beneficial for those with high service• Minimal change it the Net OPEB liability from current policy in short term in short term through 2025• Total ADC $74.4 M from 2019 through 2040 (same as baseline)

27


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.6 $2.6 $2.7 $2.7 $2.7 $48.6



(Final)$2.2 $2.5 $2.6 $2.6 $2.7 $2.7 $2.7 $74.4



Alternative 5B – Net OPEB Liability

28

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Alternative 5B


Alternative 5B – Actuarially Determined Contribution

29

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 5B - Final ADC Alternative 5B Savings Alternative 5B - Preliminary ADC


Alternative 5C• Service-based Sliding Scale of contributions for new hires and current active employees and spouses• Service-based contributions: 100% with <8 years of service, 50% with 8-14 years, 25% with 15-19 years, 0%

for 20+ years (20% for spouses)• Contribution schedule more beneficial for those with high service• Net OPEB liability will decrease by about $2.1M from current policy in short term through 2025• Total ADC $68.2 M from 2019 through 2040 ($6.2 M decrease over baseline)

30


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.2 $2.2 $2.3 $2.3 $2.3 $44.7



(Final)$2.2 $2.5 $2.2 $2.2 $2.3 $2.3 $2.4 $68.2



Alternative 5C – Net OPEB Liability

31

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Alternative 5C


Alternative 5C – Actuarially Determined Contribution

32

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 5C - Final ADC Alternative 5C Savings Alternative 5C - Preliminary ADC


Alternative 5D• Service-based Sliding Scale of contributions for new hires and current active employees and spouses• Service-based contributions: 100% with <8 years of service, 50% with 8-14 years, 25% with 15-19

years, 15% for 20+ years (20% for spouses)• Net OPEB liability will decrease by about $4.3M from current policy in short term through 2025• Total ADC $64.7 M from 2019 through 2040 ($9.7 M decrease over baseline)

33


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.0 $1.9 $2.1 $2.1 $2.1 $38.6



(Final)$2.2 $2.5 $2.0 $1.9 $2.1 $2.2 $2.3 $64.7



Alternative 5D – Net OPEB Liability

34

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025

Baseline Option 5D


Alternative 5D – Actuarially Determined Contribution

35

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Alternative 5D - Final ADC Alternative 5D Savings Alternative 5D - Preliminary ADC


Alternative 6• Grandfather current employees, employees hired after 7/1/2019 are not eligible for OPEB benefits• Same cost sharing structure as the current policy• Establish defined contribution benefits for new hires after 7/1/2019• Net OPEB liability will decrease by about $0.3M from current policy in short term through 2025• Total ADC $73.5 M from 2019 through 2040 ($0.8 M decrease over baseline)

36


$in millions2019 2020 2021 2022 2023 2024 2025

Total

2019-2040






(Preliminary)$2.2 $2.5 $2.5 $2.4 $2.5 $2.4 $2.3 $30.1



(Final)$2.2 $2.5 $2.5 $2.4 $2.5 $2.4 $2.5 $73.5

Defined Contribution for post 7/1/2019 hires $0.000 $0.023 $0.043 $0.058 $0.074 $0.090 $0.103 $3.2The County’s funding policy is the maximum of expected benefit payments or the annual normal cost plus a 30 yearamortization of the unfunded actuarial obligation. Note due to the County’s budgeting and reporting timing, the annualcontribution is calculated on a one-year lag.



37

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

20,000,000

7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024 7/1/2025



Alternative 6 – Actuarially Determined Contribution *

38

*Does not include DC contributions

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040


Appendix


Cost Sharing Scenarios• Current Policy

• Plan is open to new entrants• Pre-65 retirees contribute 7%, Post-65 retirees contribute 0%, Spouses contribute

20%• Alternative 1 – New retirees after 7/1/2019 will have higher contributions

• Pre-65 contributions increase to 15%, Post-65 contributions increase to 5%• Alternative 2 – New hires after 7/1/2019 will have higher contributions

• Pre-65 contributions increase to 15%, Post-65 contributions increase to 5%• Alternative 3 – New retirees after 7/1/2019 will have higher contributions and new hires

are not eligible• Pre-65 contributions increase to 15%, Post-65 contributions increase to 5%• Employees hired after 7/1/2019 are not eligible for OPEB benefits

40


Cost Sharing Scenarios (continued)

41

• Alternative 4A – 1% cost share for future retirees 65 and older• Pre-65 contributions remain the same at 7%• Post-65 contributions increase from 0% by 1% annually, up to 7%

• Alternative 4B – 1% cost share for current and future retirees 65 and older• Pre-65 contributions remain the same at 7%• Post-65 contributions increase from 0% by 1% annually, up to 7%

• Alternative 5A – Sliding Scale for new hires and non-vested employees• Service-based contributions: 60% with 8 years of service, declining by 5% per year

to 0% at 20 years of service• Alternative 5B – Sliding scale for new hires only after 7/1/2019

• Service-based contributions: 100% with <8 years of service, 50% with 8-14 years,25% with 15-19 years, 0% for 20+ years (20% for spouses)


Cost Sharing Scenarios (continued)

42

• Alternative 5C – Sliding scale for new hires and current active employees• Service-based contributions: 100% with <8 years of service, 50% with 8-14 years,

25% with 15-19 years, 0% for 20+ years (20% for spouses)• Alternative 5D – Sliding scale for new hires and current active employees

• Service-based contributions: 100% with <8 years of service, 50% with 8-14 years,25% with 15-19 years, 15% for 20+ years (20% for spouses)

• Alternative 6 – Grandfather current employees and no new hires will receive a subsidy• Same cost sharing structure as the current policy• Employees hired after 7/1/2019 are not eligible for OPEB benefits


Actuarial CertificationKent County Levy Court (Court) retained Grant Thornton to perform a valuation of its postemployment welfare plan for the purpose of determiningits annual cost and disclosures in accordance with GASB 75. In addition, a 5-year liability projection was performed to assist the Court withselecting a potential cost-sharing policy for such postemployment benefits.

The undersigned consulting actuary is a member of the Society of Actuaries and other professional actuarial organizations, and meets the“Qualification Standard for Prescribed Statements of Actuarial Opinion” relating to postemployment welfare plans.

In preparing the results presented in this document, we have relied upon information provided to us regarding plan provisions, plan participants,and plan assets. We have reviewed this information for overall reasonableness and consistency, but have neither audited nor independentlyverified this information. The accuracy of the results presented in this report is dependent upon the accuracy and completeness of the underlyinginformation.

Where reasonable, the actuarial assumptions and the accounting policies and methods employed in the development of the results have beenselected to be consistent with the assumptions detailed in the June 30, 2019 GASB 75 actuarial valuation report issued by a third party. We haverelied on the information disclosed within that report and have presumed that it is complete and accurate.

The valuation has been conducted in accordance with generally accepted actuarial principles and practices. In our opinion, the actuarialassumptions and methods represent reasonable expectations of anticipated plan experience. To fulfill the applicable accounting requirements,each actuarial assumption should be management's "best estimate solely with respect to that individual assumption."

The information contained in this document was prepared for the internal use of the Court. It is neither intended nor necessarily suitable for otherpurposes. The Court may also distribute this document to parties which have a legal right to require the Court to provide them with this document,in which case they will provide this document and the associated actuarial valuation reports as necessary in its entirety including all assumptions,caveats, and limitations.

Andrew Etheridge, FSA, FCA, EA, MAAA

43


Assumptions & Methods

44

Assumption FYE 2019+

Discount Rate

7.50% as of June 30, 2019

7.25% for June 30, 2020 and June 30, 2021

7.00% for June 30, 2022 and beyond

Expected Return on Assets

7.50% as of June 30, 2019

7.25% for June 30, 2020 and June 30, 2021

7.00% for June 30, 2022 and beyond

Mortality

RP-2000 Combined Mortality Table, mortality improvement projected to 2016 with Scale AA

*Please note, an update to the new SOA Pub-2010 mortality study is estimated to increase actuarial

liabilities approximately 10%

TerminationMultiple of Table T-5

(5-year service select & ultimate)

Retirement 10% at age 55 increasing to 100% at age 65

Population Growth Level Active Population unless otherwise noted in the projection scenario

Actuarial Cost Method Entry Age Normal Level Percentage of Pay

Refer to the June 30, 2019 GASB 75 actuarial valuation report, issued by a third party, for more information.


Assumptions & Methods (Continued)

45

Assumption FYE 2019+

Healthcare TrendMedical: 8.00% in the 2019/2020 FY decreasing 50 bps to 4.50% in the 2026/2027+ FY

Dental: 4.50% in the 2019/2020 FY decreasing 25 bps to 3.50% in the 2023/2024+ FY

Per Capita Claims Costs As provided by the Delaware Valley Health Trust as of July 1, 2019

Marriage20% of actives are assumed to be married;

males assumed to be the same age as females

Participation 100% of active employees who currently elect coverage assumed to elect coverage at retirement

Lapse None; 100% assumed to maintain coverage

Salary Increase 3.50% per year (used for actuarial cost method)

Excise “Cadillac” Tax Not included in liability projections

Refer to the June 30, 2019 GASB 75 actuarial valuation report, issued by a third party, for more information.Please note, the Excise Tax was removed for this analysis based on law change in December 2019.


Current Plan Provisions

46

Hired before June 29, 2010 Hired after June 29, 2010

Eligibility

Retire from active service;

Age 62 with 5 years of consecutive service or



30 years of consecutive service

Retire from active service;




30 years of consecutive service

Dependent Eligibility Yes Yes

Survivor EligibilityYes – Surviving Spouse eligible for COBRA

coverage

Yes – Surviving Spouse eligible for COBRA

coverage

Benefits

Medical, dental, and vision coverage for

participants and eligible dependents. Retirees

contribute 7% for pre-65 medical coverage, 0%

for post-65, and 20% for dependent coverage;

Group Life insurance available

Medical, dental, and vision coverage for

participants and eligible dependents. Retirees

contribute 7% for pre-65 medical coverage, 0%

for post-65, and 20% for dependent coverage;

Group Life insurance available

Memorandum

TO: Pension Review Committee

FROM: Allan Kujala, Personnel Director

SUBJECT: Quarterly Pension Activity Report

DATE: May 14, 2020

R=Retiree from active service; P=Pensioner, vested former employee; R/EO=Active Elected Official receiving pension

P70=Pensioner w/Rule of 70 benefits; B=Beneficiary of deceased participant; QB=QDRO beneficiary; *benefit addition or deletion

retroactive to eligibility month. (#-July 2019 COLA for retirees from active service only)

Life=Life Annuity; CA=Contingent annuitant (beneficiary) & %; CC=Continuous & certain for # years

Pension Payment Date Gross $ Paid # Recipients Comments

May 1, 2020 $261,375.79 232 -1 (R) w/retro -$608.35; +1 (B) w/retro +$1,034.35

April 1, 2020 $260,949.79 232 +1 (R); -(R) w/retro -$3,041.65; -1 (P) w/retro -$1,505.00

March 1, 2020 $263,615.40 233 +1 (R) w/retro +$2,709.09; -1 (R) w/retro -$1,867.43

February 1, 2020 $262,773.54 233 -1 (R) w/retro -$483.19; +1 (B) w/retro +$234.49

January 1, 2020 $263,022.24 233 -1(R); +1(B)

December 1, 2019 $263,033.77 233 +3(R); +1(P); +1(P) w/retro $137.05; -1(B)

November 1, 2019 $258,310.63 229 +1(R); +1(P) w/retro $862.56; -1(P)

October 1, 2019 $255,266.06 228 +1(R)

September 1, 2019 $253,321.24 227 +1(R); -1(B)

August 1, 2019 $251,910.24 227 +1 (B) w/retro $514.87

July 1, 2019 (+1% cola#) $250,880.50 226 ($2,027.39) -1 (R)

June 1, 2019 $249,524.91 227 +2 (R); -1(R); +1(QDRO)

May 1, 2019 $247,078.62 225 -1 (P)

April 1, 2019 $247,204.79 226 +1 (P)

March 1, 2019 $246,514.51 225 - 1 (P) & (+$89.61) net interest adjustment/credit*

February 1, 2019 $246,576.44 226 +2(P)

January 1, 2019 $243,264.77 224 +2 (R); +1 (P)

Pending Pensions - Type Effective Date Service Years/Age Estimated Benefit (R) 06/01/20 15.8 yrs; 62 $1,212.29/mo. CC10yrs (R) 06/01/20 15.5 yrs; 62 $1,101.28/mo. Life (B) 04/01/20 $664.30/mo. Life (Active employee died 03/20/20) Pensions started – Type Effective Date Service Years/Age Monthly Benefit/Type #2019 interest adjustment +(B) 05/01/20 $1,034.35/mo. Life-Beneficiary (retro to 03/01/20) - (R) 05/01/20 -$608.35/mo. Died 03/06/20 retro +(R) 04/01/20 16.4 yrs; 65 $1,881.04/mo. Life +(R) 04/01/20 -$3,041.65/mo. Died 02/21/20 retro - (P) 04/01/20 -$1,505.00/mo. Died 02/08/20 retro w/Beneficiary +(R) 03/01/20 30.1 yrs; 53 $2,709.09/mo. CA50% (retro to 02/01/20) - (R) 03/01/20 -$1,867.43/mo. Died 01/18/20 retro +(B) 02/01/20 $234.49/mo. Life-Beneficiary (retro to 01/01/20) -(R) 02/01/20 -$483.19/mo. Died 12/22/19 retro +(B) 01/01/20 $1,152.77/mo. Life-Beneficiary -(R) 01/01/20 -$1,164.30/mo. Died 12/08/19 +(P) 12/01/19 5.3 yrs; 62 $137.05/mo. CC10yrs (retro to 11/01/19) +(P) 12/01/19 13 yrs; 62 $1,170.87/mo. CA100% -(R) 12/01/19 8.1 yrs; 70 $1,008.08/mo. Life -(R) 12/01/19 17.4 yrs; 65 $1,273.92/mo. Life -(R) 12/01/19 18 yrs; 62 $1,339.27/mo. CA50% +(R) 11/01/19 32.8 yrs; 53 $2,889.96/mo. Life +(P) 11/01/19 16 yrs; 60 $287.52/mo. CA100% (retro to 08/01/19) - (P) 11/01/19 -$132.91/mo. Died 10/14/19 +(R) 10/01/19 27 yrs; 62 $1,944.82/mo. CA 50% +(B) 09/01/19 -$265.54/mo. Died 07/29/19 retro +(R) 09/01/19 25 yrs; 58 $2,191.41/mo. CA50% +(B) 08/01/19 $514.87/mo. w/retro to 07/01/19 - (R) 07/01/19 -$671.80/mo. Died 04/14/19 retro + (R) 06/01/19 11.6 yrs; 69 $1,279.25/mo. CC10yrs w/QDRO + (QDRO) 06/01/19 $351.67/mo. QDRO + (R) 06/01/19 18.1 yrs; 65 $1,235.87/mo. CA100% - (R) 06/01/19 -$420.50/mo. Died 03/31/19 retro - (P) 05/01/19 -$126.79/mo. Died 03/28/19 retro +(P) 04/01/19 11.6 yrs; 62 $750.02/mo. Life - (P) 03/01/19 -$151.54/mo. Died 02/07/19 + (P) 02/01/19* 8.8 yrs; 62 $303.92/mo. Life (retro to 01/01/19) + (P) 02/01/19* 27.2 yrs; 55 $3,022.87/mo. CA100% #(retro to 01/01/19) + (P) 01/01/19 12.5 yrs; 62 $302.91/mo. CA100% #(retro to 01/01/19) + (R) 01/01/19 8.3 yrs; 67 $511.83/mo. Life +(R) 01/01/19 20.3 yrs; 62 $1,392.86/mo. CA100% #(retro to 01/01/19)

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