Page 8 - DCAC November 2024 Files

COUNTY OF SAN MATEO
DEFERRED COMPENSATION ADVISORY COMMITTEE Minutes for August 22, 2024

Innovest

4. Discuss Past Crediting Issue in SAGIC Fund (Rick Rodgers)
A. Updates from Empower (Bob Gleason, Simon Poole, Judd Thompson)
B. Updates from Innovest (Rick Rodgers)
C. Discuss and Approve Method for Resolving SAGIC Fund Issue

A motion was made to do the following with regard to the SAGIC solution:

1. Innovest will engage with Chris Tobe of the Hackett Group to audit Empower’s data on
which a solution will be applied.
a. Calculate the correct plan-level book value based on crediting rates provided by
Empower—Q2 2016 through present.
b. Review market value calculations provided Empower.
2. Innovest will manage Chris Tobe’s contract. Empower will reimburse Innovest for costs
(estimated at $9,500).
3. DCAC will hold a special meeting in late September to review Chris Tobe’s audit
presentation and report. If the report is accepted, the DCAC will approve Empower’s
corrective action plan to restore $11.4 million to the market value, inclusive of
approximately $6.1 million to the plan and participant accounts.
4. The completion of the corrective action plan will depend on the timing of the audit and the
DCAC’s approval. Empower will provide an updated target completion date after the DCAC’s
approval.

M/S/C Finnegan/Raw/6-0

NEW BUSINESS

Empower

5. Presentation of Quarterly Plan Review (Bob Gleason)

The DCAC accepted this presentation.

6. Review and Approve 2024-25 Education Policy (Bob Gleason)

A motion was made to approve the Education Policy as updated.

M/S/C Aponte/Wilson/6-0

7. Discuss Direction for Next Annual Survey (Bob Gleason)

Decision: The 2024 survey will be skipped. Surveys will likely resume in 2025, perhaps on a
biennial basis.

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