Shelton City pension board flags one international fund for watch, discusses enrollment and education

The Shelton City Pension Board reviewed its retirement plan investments at a meeting on May 21, 2025, identifying one Empower international equity fund that narrowly failed the board’s pass/fail criteria and discussing possible administrative changes and employee outreach. No formal change to the plan’s investment lineup was adopted during the meeting.

Board advisers told trustees that the Empower international blend fund — which holds about $213,000 in the plan accounts reviewed — fell below the board’s passing threshold in the review window because of weak historic peer-rank performance and a recent change in portfolio management. The advisers noted the fund’s current management tenure at roughly 1.3 years, short of the board’s documented tenure criterion (3 years), and recommended placing the fund on watch for further monitoring rather than an immediate removal.

The recommendation matters because the board’s investment scorecard requires funds to meet multiple criteria to pass; advisers said the fund has been marginal in several three-year metrics even though some recent quarterly results have improved. Trustees did not take a formal vote to remove or replace the fund at the meeting; the discussion concluded with a proposal to monitor the fund’s next two quarters before making a formal change.

In other investment items, advisers reported the plan’s guaranteed-income (stable-value) fund retained a current credited rate of 2.1 percent for the quarter, and the plan’s forfeiture account balance was approximately $4,000. Trustees reviewed plan budget-related accounts used to pay advisory and administrative expenses and discussed continuing efforts to limit those balances; advisers said prior changes appear to be preventing growth in those expense accounts.

Trustees also revisited earlier work on automatic enrollment and the Internal Revenue Code provision commonly referred to as the 414(h) pickup. Under the board’s current arrangement employees’ contributions go into the plan after tax; adopting a pretax option or an employer pickup would require adopting relevant 414(h) language and, depending on the chosen structure, could require a city match or other employer contribution. Board members said the item was considered previously and that efforts to obtain an employer match were not supported by the mayor’s office at the time; the board has not forwarded a new formal proposal to the Board of Aldermen for approval.

The board and Empower’s representative agreed on steps to bolster employee education. Trustees asked plan staff to coordinate with the city’s HR contact, Robin, to promote Empower’s learning-center materials and webinars and to schedule on-site or appointment-based consultations during next year’s open-enrollment window. Empower offered to send a learning-center communication and webinar links for distribution to employees.

Board counsel and trustees also clarified an administrative question about a new member: legal counsel confirmed that the director of finance serves on the pension board by virtue of her office and that no separate board vote was required to confirm her seat.

Formal minutes from the board’s May 14 meeting were approved by voice vote. The board postponed discussion of the volunteer firefighter plan until November so an actuary can attend a future meeting. The session concluded with a motion to adjourn.

The board’s advisers said they will send the investment scorecard and supporting reports to trustees for the record. Trustees and staff discussed practical steps to speed administrative follow-up, including securing the mayor’s signature on required documents and ensuring representatives are scheduled well in advance for employee outreach events.