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Board narrows language on delegation, agrees staff can use investment legal budget and directs tax and actuarial hires
Summary
Trustees directed staff to clarify delegation language so routine administration is expressly delegated to the executive director, signaled consent to treat one‑time investment legal counsel fees as investment expense under delegated authority, and authorized negotiation with Ice Miller for tax counsel and transition to Khiron as consulting actuary.
Trustees discussed whether one‑time investment legal expenses for reviewing side letters and contracts should be brought to the board as formal budget amendments or handled under existing delegated budget authority. Staff explained that earlier board direction had delegated routine investment manager fee authority to staff and that the new legal work—two discrete outside counsel reviews—had produced charges of about $10,000 and an expected additional $20,000.
Executive Director Doris Rentschler explained there is existing authority for routine day‑to‑day administration but that some governing documents use broader language such as “delegates all else” that could be read as vague. Trustees gave direction to staff to return with red‑lined changes aligning the Board of Retirement Charter, board regulations and the authorized signers resolution so that board‑reserved decisions and routine day‑to‑day administration are clearly distinguished.
On the budget question, trustees indicated consensus that staff may treat the relatively small, one‑time contract review fees as an investment expense under delegated authority (within existing thresholds for emergency or delegated contracting), while larger or unexpected amounts would be brought back to the board. Staff said they would add a discrete line item for investment legal expense in next year’s budget for clarity.
On procurement, staff said the previously recommended Buchalter attorney was unavailable and staff recommended negotiating with Ice Miller (Rob Gauss) for tax counsel; trustees indicated consensus to proceed. Separately, the RFP review committee recommended Khiron as MCERA’s consulting actuary; trustees directed staff to proceed with engagement and noted a contract would be completed consistent with procurement practice.
Separately, trustees reviewed the trustee education and travel policy to implement Senate Bill 827 changes (initial ethics training within six months and added fiscal/financial training every two years). Trustee motion to adopt those policy updates passed on a roll‑call vote (affirmative votes recorded at the meeting).
