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Board votes to adopt three policy edits; staff to revisit PIMCO CIT after longer track record as cash‑flow projections signal higher near‑term withdrawals
Summary
Trustees approved three policy updates, directed staff to revisit a potential conversion of PIMCO to a CIT after a three‑year track record, and heard staff project a likely $12–14 million annual cash draw for FY27 — higher than recent years — while receiving performance and administrative updates.
At its July 15 meeting, the Mendocino County Board of Retirement approved three policy updates, reviewed an operational recommendation on a potential PIMCO collective investment trust (CIT) conversion and received performance, cash‑flow and administrative reports.
Policy vote: Doris Rinchler, executive director, presented three revised policies — community property/division interest, an acceptable‑use‑of‑AI formatting update, and a minor definitional addition — and trustees voted to adopt all three in a single motion. Trustee Doug (mover) moved approval of all three policies and another trustee seconded; the clerk completed a roll‑call and the chair announced the motion passed. The clerk recorded that one trustee had stepped out during the roll call. The board did not record a detailed tally in the meeting minutes beyond the roll‑call procedure.
PIMCO CIT: Staff introduced a recommendation to remain in the current mutual‑fund structure for the PIMCO total return strategy rather than switching to a CIT now, citing limited historical data (about 20 months for the CIT share class) and small projected portfolio‑level performance differences (roughly 2–10 basis points). Staff recommended revisiting the conversion when a full three‑year CIT track record exists; trustees asked staff to bring the item back in approximately 16 months if the three‑year threshold is met.
Performance and cash‑flow: Staff presented a preliminary June performance flash showing an almost 17.5% time‑weighted return for the portfolio for the year‑to‑date period. Staff also reported a pending $1.2 million trade and noted a LaSalle real‑estate capital call will increase the plan’s private allocation toward an 11% target.
The retirement financial officer then presented two‑year cash‑flow projections. Staff said contribution growth has flattened and that the plan will likely need to pull more cash from investments to pay benefits: an annualized need of at least $12 million for fiscal year 2027, and perhaps $13–14 million, compared with a rough historical range of $8–10 million. Staff emphasized projections are sensitive to employer payroll estimates and refunds and said they will monitor and update the board.
Administrative: Executive Director Rinchler noted a retirement accountant will start Aug. 3, described a county website migration to the Open Cities platform, and reminded trustees about upcoming elections and conference registration. The board recessed to closed session; on return the chair reported the executive director had received her annual evaluation. The next board meeting was set for Aug. 19, 2026, at 8:30 a.m. in Ukiah.
No litigation or statute changes were announced at the meeting.
