At the 5/19/2004 PACT Board meeting: (begins on page 18 in the PDF file with minutes) Chairman Ivey introduced Mr. Dale Goode, a PACT purchaser who had asked to present his concerns to the Board. Mr. Goode has four PACT contracts and had expressed his opinion that all of his contracts whould be guaranteed. He asked for a written guarantee from the board that full benefits would be paid for all of his contracts and expressed his desire that the Board seek "full faith and credit" for the program, or establish some sort of "rainy day" fund to secure all future benefits.
The board gave him a pat on the head and sent him on his way. Only to learn at its 8/25/2004 board meeting (pages 27& 28 in the above-linked PDF) from Jay Kloepfer of Callan Associates that the board's assumed 9% return on investments represented: "...a heroic assumption and higher than the expected case return for even the most aggressive asset mix examined in the study."
Geee.... so maybe Mr. Reimert well, knew what he was talking about! As did these other people! The minutes of the PACT Board meetings present a revealing picture of a group of people who were warned about problems as early as 2004 (they haven't released the earlier minutes), but they, by turns, ignored the problem, or - even worse it seems now - jumped from fund manager to fund manager for higher returns on ever more risky investments. Truly, these things are worth the time to read. Here they are listed again for your "enjoyment:" I can't get the 2009 link to work, but maybe it'll get fixed. The 2006 minutes are the most fun because they're an actual transcript of the meeting, not just a list of motions. 2009: http://www.treasury.state.al.us/PACT/Documents/PACT%20BOARD%20MINUTES%202009.pdf 2008: http://www.treasury.state.al.us/PACT/Documents/PACT%20BOARD%20MINUTES%202008.pdf 2007: http://www.treasury.state.al.us/PACT/Documents/PACT%20BOARD%20MINUTES%202007.pdf 2006: http://www.treasury.state.al.us/PACT/Documents/PACT%20BOARD%20MINUTES%202006.pdf 2005: http://www.treasury.state.al.us/PACT/Documents/PACT%20BOARD%20MINUTES%202005.pdf 2004: http://www.treasury.state.al.us/PACT/Documents/PACT%20BOARD%20MINUTES%202004.pdf |
At its August 24, 2005 meeting, the Alabama Pact Board interviewed three candidate companies who had applied to provide actuarial services to the board.
he minutes
