SUBJECT/RECOMMENDATION:
Title
Annual review of the Employees’ Pension Plan investment performance for the calendar and plan year ended December 31, 2025.
Body
SUMMARY:
Annually a presentation of the Plan’s calendar year investment performance is made to the Trustees. For calendar 2025, the Plan realized an investment return of 11.45%, versus the plan’s benchmark of 13.36% and actuarial assumption of 6.5% It was a very good year of investment performance on an absolute basis, but the plan underperformed relative to the index.
For the last three calendar years, the plan had an average annualized return of 11.75%, versus a benchmark of 11.20%; and for the last five calendar years, the plan had an annualized return of 6.19% versus a benchmark of 6.96%.
During calendar 2025, the Pension Trustees approved the termination and replacement of three of the plan’s investment money managers due to underperformance versus their benchmarks and peers.
The investment committee, with the assistance of the Plan’s investment consultant, CapTrust Advisors, meets on at least a quarterly basis to monitor asset allocation and money manager performance, and will continue to recommend money manager terminations, replacements, and/or additions when appropriate.
STRATEGIC PRIORITY:
Professional administration of the pension plan assists in attracting and retaining top-quality personnel via this attractive and competitive compensation benefit.
