06/22/2004 Resolutions 2004-147
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RES 0 L UTI 0 N 2004-147
WHEREAS, on June 12,2001, by Resolution 2001-147, the City of Grand Island
authorized Group Annuity Contract 21074 with Ameritas, effective January 1, 2002, for the City of
Grand Island General City Employees Pension Plan; and
WHEREAS, it is necessary to amend such contract to maintain fiduciary
responsibilities; and
WHEREAS, it is recommended that an Investment Policy Statement be adopted and
incorporated into the pension plan to satisfy the requirements under ERISA Section 404( c) and the
Department of Labor regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the Investment Policy Statement attached
hereto as Exhibit "A" is hereby adopted and incorporated into the Ameritas Group Annuity Contract
21074 for the City of Grand Island General City Employees Pension Plan, and that the plan be
amended to maintain fiduciary responsibilities.
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized and directed to
execute Amendment Number 2 to the Grand Island General City Employees Pension Plan as set out
above.
Adopted by the City Council of the City of Grand Island, Nebraska, June 22, 2004.
Qs\~ mt~
RaNae Edwards, City Clerk
Approved as to Form Xl
June 17, 2004 Xl City Attorney
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Grand Island City Employees Pension Plan
Investment Policy Statement
Purpose:
The purpose of the Plan is to help employees build a financially secure future by providing a
source of retirement income. The purpose of this Investment Policy Statement is to establish
investment criteria, document the Plan's investment objectives, and create performance
guidelines for evaluating investment decisions.
It is the intent of the Plan to satisfy the requirements under ERISA Section 404(c) and the
Department of Labor ("DOL") regulations thereunder, which limit the liability of Plan Fiduciaries
for investment losses resulting from participant-directed investments.
Designated Investment Alternatives
I. Statement of Investment Objectives for Designated Investment Alternatives
A. Provide a broad range of designated investment alternatives (at least three) with
varying investment characteristics and degrees of risk to provide Plan
Participants with the opportunity to:
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1.
materially affect the potential return on the amounts in their individual
accounts;
control the degree of risk to which such amounts are subject; and
construct a portfolio with aggregate risk and return characteristics within
their appropriate range.
2.
3.
B. Select and monitor providers prudently and incur expenses that are reasonable
based on the quality of the services provided and the nature and extent of the
services rendered.
II. Meeting the Investment Objectives Performance Criteria for Designated
Investment Alternatives
A. To meet its investment objectives, the Plan will invest in a group annuity contract
offering a wide range of investment options, including a diversified selection of
investment options suited to the demographics of the City of Grand Island
employees. As part of the Plan Fiduciaries' due diligence with respect to the
investments available for qualified retirement plans, the Plan Fiduciaries have
selected an Ameritas Group Annuity Contract as the principal investment vehicle
to meet the purpose, objectives, and performance criteria set forth in this
Investment Policy Statement.
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B.
Assets in the group annuity contract will be placed in investment options
managed by professional managers. Participants will have the freedom to choose
from among these designated investment alternatives to create the investment
mix desired to meet their own retirement objectives.
EXHIBIT "A"
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c.
The selection and retention of designated investment alternatives will be based
on the characteristics of their Fund Managers. Evaluations may include one or
more of the following:
. analyzing returns for 1, 3, 5 and 10 years
. reviewing Standard Deviation measures for 3 and 5 years
. measuring performance and correlation to asset class, style, benchmark, and
other investment options in the Ameritas line-up
. reviewing performance in fluctuating markets analyzing style and asset class
. looking for portfolio changes and reviewing consistency of style
. considering fund manager tenure
. considering additional characteristics such as: size of funde s) managed; assets
under management; size and depth of
. supporting management company; recent cash inflows/outflows; stability and
integrity of the fund management company; changes in fund managers and
changes in company ownership.
These characteristics are guidelines only and each mayor may not be applied at
the discretion of the Plan Fiduciaries.
III. Investment Options for Designated Investment Alternatives
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The Plan will implement this policy by offering investment options which closely parallel the
categories described below:
Conservative
The investment options in this category seek to protect principal and provide small growth.
Income
The investment options in this category seek to protect principal and provide some growth.
Growth & Income
The investment options in this category seek a balance between growth and safety of principal.
Growth
The investment options in this category seek growth of principal.
Aggressive Growth
The investment options in this category seek maximum growth of principal.
The Plan will offer all of the specific investment options indicated on the attached Ameritas Edge
Investment Options, which will be the designated investment alternatives offered by the Plan.
IV. Monitoring Performance of Designated Investment Alternatives
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A.
In order to ensure continued compliance with the purposes and objectives of this
Investment Policy Statement, periodic reviews of the performance record of
investment options and Fund Managers will be conducted.
B.
Perforn1ance reviews and other evaluative materials may be used to assist in the
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Date:
review process and will become a part of the records maintained regarding the
selection and monitoring of the Designated Investment Alternatives and Fund
Managers.
c.
Performance will be compared to a style-specific market index and/or appropriate
peer group. Fund Managers will be reviewed for their discipline in maintaining
their asset class/style. Although short-term results will be reviewed, the primary
standard for making changes will be weak performance, based on long-term,
sustained results compared to the relevant peer group and/or style- specific
market index.
D.
The returns on each investment option will be measured by comparison to the
appropriate index.
Signature:
(Plan Fiduciary)
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