The Federated City Employees' Retirement Plan Board convened on September 20, 2025, to discuss key updates regarding the pension plan's performance, contract renewals, and executive compensation. The meeting began with a report on the fiscal year returns, revealing a 4.14% increase in the pension plan's value year-to-date, while healthcare costs rose by 5.26%.

The board then addressed the renewal of a contract for custodian banking services, which had been previously vetted by the Investment Committee. Ron, a representative from the committee, highlighted the growth of the portfolio, which has increased by over a billion dollars in the past five years. The board unanimously approved a five-year extension for the contract, acknowledging the limited competition in the custodian banking space.

Moving to new business, the board discussed merit increases for the CEO, who received praise for his performance in his first year. A proposal for a 4% merit increase and five additional executive days was put forth and subsequently approved by the board. Trustees expressed their satisfaction with the CEO's contributions and leadership, noting positive feedback from external stakeholders.

The discussion then shifted to the Chief Investment Officer (CIO), who also received commendations for his performance, with a similar proposal for a 4% increase and five executive days. This motion was also approved without opposition.

The meeting concluded with a presentation on the state of the pension plan, emphasizing the importance of understanding the economic impact of pension benefits. The CEO presented data indicating that pension benefits paid out significantly contribute to local economic activity, generating approximately $3 billion, with $1.2 billion remaining within San Jose.

Overall, the meeting underscored the board's commitment to maintaining a robust pension plan while ensuring effective leadership and management. The next steps include continued discussions on strategic planning and addressing demographic challenges within the pension system.