MINUTES OF THE EMPLOYEE RETIREMENT ACCOUNT COMMITTEE REGULAR QUARTERLY MEETING OF SEPTEMBER 9, 2021. Present: Chair Aaron Olson, Vice Chair Jeffrey Vredenburg, Secretary Shayla Griggs, and Treasurer Kelly Strickland. Others: Pension Plans Administrator Debra Martin and Pension Specialist Peter Gottlieb. Absent: None. 1. CALL THE MEETING TO ORDER: Chair Olson called the meeting to order at 10:00 a.m. 2. PLEDGE OF CIVILITY: Chair Olson stated for the record, "We may disagree, but we will be respectful of one another. We will direct all comments to issues. We will not engage in personal attacks." 3. ROLL CALL: Presenter: Pension Plans Administrator Martin Pension Plans Administrator Martin called roll; all committee members were present. 4. PUBLIC INPUT: None. 5. APPROVAL OF MINUTES: 5.1. Approval Re: Minutes of the Employee Retirement Account Committee Regular Quarterly Meeting of June 3, 2021. Presenter: Chair Olson. Vice Chair Vredenburg made a motion to accept the minutes of the June 3, 2021, meeting; Secretary Griggs seconded the motion. The motion carried unanimously (4-0). 6. QUARTERLY INVESTMENT REPORTS: 6.1. Presentation and Discussion Re: AIG Retirement Services, ERAC Report for Quarter Ending, June 30, 2021. Presenter(s): Gregg Hudak, Financial Advisor, Trent Harris, Financial Advisor, and Lilia Pivetta, Relationship Manager, VALIC Financial Advisors, AIG Retirement Services. Mr. Harris and Mr. Hudak appeared before the Committee and introduced themselves. Book 1 Page 72 09-09-2021 10:00 a.m. Mr. Harris stated that he has enrolled 25 new employees since the last ERAC meeting. He continues to use Retirement Pathfinders to aid in mapping out individual investment plans with interested participants, and he has found growing interest. He has resumed in-person meetings with participants every other Wednesday at City Hall, although virtual meetings remain popular. Mr. Hudak provided an update regarding the health fund merger; the transition funds were opened last month, all monies are now in those funds, and all accounts have been made whole in the amount of approximately $17,000. He has received formal communications from Pension Administration, and VALIC will send individual participant letters and include a notation on the quarterly statement of the adjustment. Mr. Hudak advised any participant questions may be directed to Mr. Harris. Chair Olsen asked if there had been any campaign to update employee contact information. Mr. Harris stated he encourages participants, whenever he speaks with them, to update their contact information. Mr. Hudak stated their marketing department could explore avenues to promote participants updating their information. Pension Plans Administrator Martin stated that Pension Administration advises employees who are separating from employment to update their contact information with VALIC, however not all employees contact the pension office upon separation of service. Treasurer Strickland suggested posting a notice on the City's intranet advising of Mr. Harris' contact information and how to schedule appointments with him. The Committee thanked Mr. Hudak and Mr. Harris for their presentation. 6.2. Presentation and Discussion Re: Quarterly Investment Analysis Review Ending June 30, 2021. Presenter: Howard Daher, Principal, Daher Capital Group. Mr. Daher appeared before the Board and introduced himself. Mr. Daher reviewed the economic and market activity for the second quarter of the year, noting that the S&P 500 has gained approximately 20% calendar year-to-date. He noted interest rates remain low and even bond investors are taking more risks. He noted that small and mid-cap companies were expected to do well this year, however they have continued to trail large caps. Although forecasts in 2020 predicted a market rotation in which value stocks would outperform growth, value has continued to underperform relative to growth. He reviewed the Second Quarter Data page of his presentation materials and noted the data compared to last year's predictions underscores the importance of diversification. Mr. Daher reviewed the Executive Summary and Performance Summary; he noted that the two funds on watch have approximately 2% of the overall amount invested and are of concern only due to their short- term performance compared to their respective benchmarks and classes; he only recommends monitoring them at this time. He reviewed the Asset Allocation by Fund, noting that while the Wellington Fund has approximately 23% of the Plan assets, it is diversified and has performed very well. He further noted that the top 5 funds hold approximately 60% of participants assets, and those funds are lower risk and well diversified. He reviewed the Watch List & Historical Look-back and noted the BlackRock LifePath Index target funds are now the default investments. Mr. Hudack commended the Plan as less than 10% of the Plan's participants are in fixed income, which is signifiçantly lower than most other plans he services. Vice Chair Vredenburg and Mr. Harris discussed the popularity of virtual counseling sessions; Mr. Harris noted approximately 90% of his meetings are virtual. Vice Chair Vredenburg asked if a link to Mr. Harris' appointment scheduler portal could be made available to participants. The Committee thanked Mr. Daher for his presentation. 7. UNFINISHED BUSINESS: None. Book 1 Page 73 09-09-2021 10:00 a.m. 8. NEW BUSINESS: Pension Plans Administrator Martin stated that she has received an application for the vacant Committee seat; it will go before the next City Commission Meeting for review. 9. OTHER MATTERS: None. 10. ADJOURN. Chair Olson adjourned the Employee Retirement Account Committee (ERAC) Regular Quarterly Meeting at 10:27 a.m. / Chair Aaron Olson Secretany Shayla Griggs Book 1 Page 74 09-09-2021 10:00 a.m.