What is your pension plan doing to educate trustees?

Timothy H. JohnsonTimothy H. JohnsonAllegheny County Director of Administrative Services

and former Retirement Board Trustee

“The degree to which human energy is used to achieve a clearly defined set of goals.”ac e e a clea ly def ed set of goals

Excerpted from “The Power of Full Engagement”Excerpted from “The Power of Full Engagement”By Dr. Jim By Dr. Jim LoehrLoehryy

Consequences of DisengagementConsequences of Disengagement

Self AssessmentSelf Assessment

Answer these 10 questions…

1) Number of employees and retirees

6) Funding ratio 7) Return Assumption 

2) Contribution rate3) Final Pay Formula 

8) Asset Allocation Targets 

4) Requirement for full pension benefit

9) Number of investment managers

5) Market Value of Assets 10) Names of consultants

Excerpted from “The Power of Full Engagement”Excerpted from “The Power of Full Engagement”By Dr. Jim By Dr. Jim LoehrLoehr

Excerpted from “The Power of Story”Excerpted from “The Power of Story”By Dr. Jim By Dr. Jim LoehrLoehr

l hAccomplishments

Consultant HiresIncreased Contribution Rate 

kTargeted BrokerageAlternative Investment StrategyEmerging and Minority Manger ProgramsEmerging and Minority Manger ProgramsPublic Pension Summit Pension Preservation Legislationo o g o

“All driven by engaged Trustees!”  y g g

TakeawayThe Engagement Formula 

Consequences of DisengagementSelf Assessment

“Requisite” Trainingi d h “ d”Find the “Reward”

Support Positive “Rituals”

“Engage your trustees and you won’t be able to contain their energy to learn and act!”contain their energy to learn and act!

Questions for CPE credit:Questions for CPE credit:Select the correct engagement formula:

a) Reason + Requisite + Reward + Resources + Ritual = Engagementb) Reason + Requisite + Representation + Resources + Ritual = Engagementc) Reason + References + Reward + Resources + Ritual = Engagement)d) Reason + Requisite + Reward + Return + Ritual = Engagement

A Trustee without requisite skills or training experiences ______. 

a) Confusion c) Anxietyb) Anger d) Doesn’t matter

New trustees should understand everything except:

a) Market Value of Assets  d) Return Assumption ) ) pb) Funding Ratio e) Asset Allocation Targets c) DJIA 52 week low