HomeMy WebLinkAbout5-7-26 MinutesCity of Meridian Employee Benefits Plan Trust
Board of Trustees Special Meeting Agenda
Thursday May 7, 2026 9:00 A.M.
City Attorney’s office or through
Microsoft Teams hyperlink (attached)
SPECIAL MEETING
Click here to join the meeting
Roll-Call Attendance
Trustees
__X___ Bill Nary __X___ Christena Barney
__X___ Alex Freitag __X___ Shawn Harper
__O___Eli Daniel
Regular Attendees
__X___Allan Bosch
__X___Scott Howell __O___Destiny Bradley
__X___Laurie Churella __X___Dan Malloy
__O___Reba White
Reports and Action Items (Action may be taken if Necessary)
Discussion of DOI Audit
A draft of the Report of Examination and Management letters have been provided to the Trust by the Department of Insurance for review and comment.
The board discussed the findings and concluded that most of the findings were immaterial and focused on process and procedures. The Board has stated and will continue to move to rectify
these findings with the assistance of the Trust Legal Counsel Allan Bosch in the coming months.
One item the board is aware there is a particular concern about is the uninsured cash balances with First Interstate Bank. Christena spoke with the bank and stated there is a potential
opportunity for the Trust to become a part of the Government Funding program that will provide these protections however, the representative at the bank needed to conduct some research
on whether the Trust qualifies for this program. It was stated by the bank representative, if the Trust does not qualify there are
other options that can be explored. Trust Counsel Allan Bosch also stated that the Trust should consider investing the surplus and reserve that will provide the needed protection and
additional revenue into the account. Scott from Gallagher also stated that many of their self-funded clients invest their surplus and reserves leaving only what is needed to pay claims
and admin costs. This is a method to produce some additional revenue that can be used to offset costs of the Trust.
Also discussed was Item 5 regarding the lack of actuarial opinion, it is lacking the Board’s response. For this one, Gallagher has re-issued the actuarial opinions for 2023-2026. The
DOI auditor has reviewed and stated the re-issued opinions meet the code requirements. Gallagher added that they have been providing the same format for opinions for various clients
for years now and have never been told that they were not compliant.
The Board discussed instituting a method for tracking and monitoring items that need to be reviewed, discussed and/or voted on annually to not lose sight of them. Trust Counsel Allan
Bosch stated this is not uncommon and he recommends some sort of tasking system to assist with this.
The Board discussed ensuring funding for legal counsel is added to the annual budget as well as any other annual costs not already accounted for.
The audit dates were discussed as well as the audit process. The document mentions audit through end of December 2024. It was explained that the auditor selects and end date for the
official audit, however transactions and process are reviewed to include up to the finalization of the audit.
The Board discuss how and when to share the final report with Council and get on the Council agenda for discussion. It was stated that even though we have received a report, it is still
not final. It is pending our discussion today and any additional responses the Board may have that will need to be included. Once the meeting today is concluded, any responses, concerns
or comments will be sent to DOI for inclusion in the final report. Once the final report is issued, the Board will provide the report to the City Council. Additionally, the Trust
will be added to May 26, 2026, City Council Work Session Agenda to have an open discussion regarding the final report and any findings of concern.
The Board, Gallagher and Trust Counsel, discussed the need to have Finance or a financial profession involved with or on the Board to assist with the fiduciary responsibilities of the
Trust to include banking and investment decisions. From the last Council meeting is sounds as though Council has a desire for this as well. Bill will follow up with Todd to see if
there is any interest from the Finance Department or any individual that
would be interested in being a Board member. Another option is for the Trust to hire someone to provide this guidance as well.
Actions or Directions for Response
Include response to Item 5: Lack of Actuarial Opinion
Provide an update on steps have already been taken regarding Item 4: Uninsured Cash Balances not in Compliance with Idaho Code § 41-4009(1)(e)
Adjournment CB Motioned, all ayes 9:34am