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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Nashua Pension Board Meeting - August 11, 2025: RBC Presentation, Fund Performance, and Stipend Discussion

Board of Aldermen Meetings — Monday, August 11, 2025

BodyNashua, New Hampshire

SessionBoard of Aldermen Meetings

DateMonday, August 11, 2025

StatusFILED

Video Record

0:00 / 1:16:17

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:55

Maddie Greg, Dave, Dan Hudson, Matt Duby, and Mary Woods.

1:07

First thing on the agenda is our visitors, RBC Wealth Management.

1:11

So Eric, if you want to introduce your group.

1:14

Yeah.

1:15

Thanks for having us.

1:17

So the four of us starting at that side, Mike Gwynn, Jackie Kana, myself, Eric Stubbs, and Enrique Hyde.

1:28

So we're the team that is managing the pension fund.

1:32

Backed by dozens of people inside RBC.

1:36

And that started around 2015.

1:38

Yeah, I think so, yeah.

1:40

Okay, I forgot to mention Joanne as well.

1:42

So yeah.

1:43

Okay, do you want to go over your own?

1:45

Yeah, so I'll go over uh the beginning.

1:48

So we have a few things planned for you today, if it's okay.

1:52

We'll go over the short one pager, then dig into some of the details on top of that.

1:59

Uh then I'll talk a little bit about what's going on in the economics of markets these days, which is every year is unusual, but this year is also unusual.

2:08

Um, and then uh ask uh Enrique to take it for a few minutes.

2:13

Uh we did uh study for you on how the plan compares to other municipal plans, so we'll go over that, and part of that is we also uh included a copy, we didn't do it, but we included a copy of your actuarial report, just basically as a reminder and just background information.

2:31

So if you like we Enrique can go over that as well.

2:35

It's mostly just as background for you.

2:37

Um so the first thing I'll do is there's a June 30 uh short report, and it uh is just a format that summarizes some of the important numbers.

2:50

So as of June 30, the plan as a whole contained 58, uh 873,000 dollars.

3:00

At that point, 68 percent of it was uh in the equity account.

3:05

There was also a little cash in there, so uh the equity portion uh is a little bit lower than that, and the rest is in fixed income or cash as well.

3:14

So for the fiscal year to date which ended June 30th, the plan as a whole was up 10.77.

3:24

Uh and for the quarter, so this was the uh last quarter, uh the the second quarter of 2025.

3:34

Um it was up 6.95% in that quarter.

3:36

So if you recall this year, uh mostly because of what was going on with tariffs and uncertainty, right at the end of the first quarter, you hit a dip in the market and then it came back in the second quarter.

3:47

So that's what you're seeing right here.

3:49

Uh and uh the numbers that I think are more important from the standpoint of the long-term health of the plan is probably the three-year number.

3:58

Um so on a three-year basis, the plan's been up 13.04% per year for the three years.

4:06

Uh and uh at the end of the quarter, the little chart at the bottom, the actual equity component was 65%.

4:16

And if you recall, if you go back um to December, it was pretty close to 70% at that time.

4:24

Um and 70% is the ceiling on what the investment policy statement allows.

4:29

So what we did was we actually scaled that back, and I'm gonna get to that in a little bit more detail in a second, but just to preface it a little bit, we actually scaled it back dramatically in the first quarter from about 70% to about 62%.

4:46

And then when it looked like the market was adjusting to the possibility of tariffs and so on, we we ramped it back up to 65%.

5:00

And as we'll see in a second in the more current report, it's actually now because of appreciation, about 66% in equities.

5:07

So that that gives you a sense for where it is.

5:09

During the fiscal year, about uh 955,000 came out of the plan.

5:15

Uh and the cash at the end of the fiscal year was about 2.77 million.

5:22

Um that cash is not sitting earning zero, it's making about 4%.

5:29

So uh even as cash is making a piece of return.

5:33

So that's the short version.

5:36

There's um a longer report, and I'm looking first at the one that's dated uh June 30th.

5:44

And I just want to highlight a few things in this.

5:48

Uh what's that look like on the economy?

5:50

It's a portfolio review.

5:51

Yeah, so it's the portfolio review, but it's the one period ending 630.

5:57

And then I'll talk briefly about the other one, which is more up-to-date information.

6:01

Uh, but just to cover the order.

6:04

So all of this is consistent with what you just saw there.

6:07

Um, so the first thing I'll ask you to look at is page four, kind of gives you a uh time-lapse photograph of what's been happening with the plan.

6:17

And here, I think looking at the three year and five year numbers is is the thing that's more significant.

6:22

So if we look at the three-year number, for example, at the start of that three years uh prior to that quarter, the plan was at about 45 million.

6:33

Since then, about five million dollars has come out, and it's appreciated 18.85 million.

6:40

So that's how you get to the 58.8.

6:44

Um, if you look at page five, uh, that tells you a little bit about the asset allocation.

6:50

Um, so within uh in the right hand little uh circle chart, uh you can see that US large cap is the biggest component.

6:58

That's about half the plan assets on U.S.

Discussion Breakdown — Share of Meeting

Employee Retirement Benefits████████████████████████████████████████40%

Pension Fund Management████████████████████████24%

Economic Development█████████████13%

Public Health█████5%

Public Works████4%

Technology and Innovation███3%

Procurement Processes███3%

Procedural███3%

Public Safety██2%

Summary of Proceedings

Nashua Pension Board Meeting - August 11, 2025

The Nashua Pension Board held a regular meeting on August 11, 2025, chaired by Maddie Greg with members Dave, Dan Hudson, Matt Duby, and Mary Woods. The primary agenda item was a presentation from RBC Wealth Management on the pension fund's performance, market outlook, and a comparative analysis against other municipal plans. The board also addressed routine business including approving minutes, personnel retirements, invoices, pension benefit adjustments, and refunds. A discussion on a potential one-time stipend for retirees was initiated, and the board noted an issue with the online portal for retirees.

RBC Wealth Management Presentation

Eric Stubbs, Mike Gwynn, Jackie Kana, and Enrique Hyde from RBC Wealth Management presented the pension fund's status as of June 30, 2025, and updated figures through early August 2025.
As of June 30, 2025, the plan had $58,873,000 in assets, with 68% in equities. For the fiscal year ending June 30, the plan returned 10.77%; for the second quarter of 2025, it was up 6.95%. The three-year annualized return was 13.04%.
During the fiscal year, approximately $955,000 was paid out, and cash holdings of $2.77 million earned about 4%.
In response to tariff-related volatility in the first quarter of 2025, the board reduced equity exposure from ~70% to ~62%, then increased back to 65-66% as markets adjusted.
As of a week before the meeting, the portfolio value was $59.6 million, and on the day of the meeting it had just broken $60 million. The 12-month return as of early August was 15.2%, and the three-year annualized return was 11.11%.
The bond portfolio was repositioned to longer maturities (3-7 years) to benefit from potential Fed rate cuts, with 80% in high-quality U.S. Treasuries and agencies.
Economic outlook: Tariff uncertainty caused market volatility but has dampened; GDP grew 3% in Q2 due to a 35% drop in imports (not necessarily positive). Corporate profits were up 10% year-over-year. Expect modest GDP growth (1% per quarter) and stock market gains of ~4-5% by year-end, with a possible dip in September-October. Employment indicators show softening (manufacturing and services employment index at 44, payrolls flat over three months).
AI impact: Minimal job loss so far, but likely to affect coding, paralegal, and other roles over next 3-10 years.
Questions from board: Discussed the effect of tariff revenue on deficits, the role of AI, and the impact of recent firings at the Bureau of Labor Statistics on data reliability. RBC noted that the BLS firing itself does not affect numbers unless the statistical process is politicized, which could destabilize pension planning.
Plan comparison (Enrique Hyde): The actuarial report (based on June 2024 data) showed an actuarial accrued liability of $58.3 million, actuarial assets of $51.6 million (smoothed over 5 years), unfunded liability of $6.7 million, and a funding ratio of 88% on actuarial basis (92% on market value basis). Current market value (~$60M) likely brings the plan close to 100% funded. Compared to a national survey of 521 municipal/state plans, Nashua’s plan was in the top quartile (better than 72% of plans). For plans with assets $20-80 million (115 plans), Nashua was better than 78%. The plan’s 7% discount rate is slightly above the median of 6.9%.
Asset allocation: Nashua’s portfolio (65% equities, rest bonds/cash) is simpler and more liquid than many large public plans that invest in private equity and alternatives. RBC noted that large plans are reducing private equity due to disappointing returns.

Consent Calendar

Minutes: Motion to approve minutes of June 2 regular meeting and June 12 special meeting. Approved unanimously.
Personnel Retirements: Recognized the retirements of Amy Jill (23 years) and Mark Jennings (11 years) from engineering. Approved.
Invoices: Two invoices from McLean Middleton totaling $3,575 ($1,560 and $2,015) for support on ordinance changes in June. Approved.
Pension Benefit Adjustment: Increase for retiree Judy Tooney from $1,611.35 to $2,644.19 per month, with retroactive payment and new amount starting September. Approved.
Refunds to Former Employees: Refunds of employee contributions for Jordan Gay, Adam Nato, Brian Palmer, and Alexis Cruz Gonzalez (short-service employees). Approved.

Discussion Items

RFP Process: Board member noted that RBC had missed two items in their RFP submission and received no communication from the city. RBC confirmed they sent an inquiry but got no response. The board indicated they are conducting due diligence on management fees and may revisit the fee structure. RBC is open to adjusting fees if below market, noting their proposal was 35 basis points.
One-Time Stipend for Retirees: Discussion initiated on a potential one-time stipend (e.g., Christmas bonus) for retirees, given the fund’s strong funding status. RBC offered to model costs if provided with retiree demographic data (benefit amounts, age, retirement date). Board members expressed support for exploring the idea but wanted to understand the formula and sustainability before voting. No formal motion made; target goal set for May 2026.
IRS Plan Changes: Noted that changes would require board approval.
Online Portal Issue: Board members reported not receiving a PIN to log into the new retiree portal; instructions said only first-time users get a PIN. Members who previously logged on could reset. Board members asked to report back on their experience.

Key Outcomes

Votes: All consent calendar items approved unanimously (minutes, retirements, invoices, pension adjustment, refunds).
Directives: RBC to provide cost modeling for a one-time stipend once retiree data is provided. Board to follow up on portal access issues. Board to continue fee analysis ahead of next meeting.
Next Steps: The one-time stipend discussion will be formalized at a future meeting; board expressed interest in a possible disbursement by Christmas but recognized the workload may push it to May 2026. Board to report back on portal feedback.

Meeting Transcript

Maddie Greg, Dave, Dan Hudson, Matt Duby, and Mary Woods. First thing on the agenda is our visitors, RBC Wealth Management. So Eric, if you want to introduce your group. Yeah. Thanks for having us. So the four of us starting at that side, Mike Gwynn, Jackie Kana, myself, Eric Stubbs, and Enrique Hyde. So we're the team that is managing the pension fund. Backed by dozens of people inside RBC. And that started around 2015. Yeah, I think so, yeah. Okay, I forgot to mention Joanne as well. So yeah. Okay, do you want to go over your own? Yeah, so I'll go over uh the beginning. So we have a few things planned for you today, if it's okay. We'll go over the short one pager, then dig into some of the details on top of that. Uh then I'll talk a little bit about what's going on in the economics of markets these days, which is every year is unusual, but this year is also unusual. Um, and then uh ask uh Enrique to take it for a few minutes. Uh we did uh study for you on how the plan compares to other municipal plans, so we'll go over that, and part of that is we also uh included a copy, we didn't do it, but we included a copy of your actuarial report, just basically as a reminder and just background information. So if you like we Enrique can go over that as well. It's mostly just as background for you. Um so the first thing I'll do is there's a June 30 uh short report, and it uh is just a format that summarizes some of the important numbers. So as of June 30, the plan as a whole contained 58, uh 873,000 dollars. At that point, 68 percent of it was uh in the equity account. There was also a little cash in there, so uh the equity portion uh is a little bit lower than that, and the rest is in fixed income or cash as well. So for the fiscal year to date which ended June 30th, the plan as a whole was up 10.77. Uh and for the quarter, so this was the uh last quarter, uh the the second quarter of 2025. Um it was up 6.95% in that quarter. So if you recall this year, uh mostly because of what was going on with tariffs and uncertainty, right at the end of the first quarter, you hit a dip in the market and then it came back in the second quarter. So that's what you're seeing right here. Uh and uh the numbers that I think are more important from the standpoint of the long-term health of the plan is probably the three-year number. Um so on a three-year basis, the plan's been up 13.04% per year for the three years. Uh and uh at the end of the quarter, the little chart at the bottom, the actual equity component was 65%. And if you recall, if you go back um to December, it was pretty close to 70% at that time. Um and 70% is the ceiling on what the investment policy statement allows. So what we did was we actually scaled that back, and I'm gonna get to that in a little bit more detail in a second, but just to preface it a little bit, we actually scaled it back dramatically in the first quarter from about 70% to about 62%. And then when it looked like the market was adjusting to the possibility of tariffs and so on, we we ramped it back up to 65%. And as we'll see in a second in the more current report, it's actually now because of appreciation, about 66% in equities. So that that gives you a sense for where it is. During the fiscal year, about uh 955,000 came out of the plan. Uh and the cash at the end of the fiscal year was about 2.77 million. Um that cash is not sitting earning zero, it's making about 4%. So uh even as cash is making a piece of return. So that's the short version. There's um a longer report, and I'm looking first at the one that's dated uh June 30th. And I just want to highlight a few things in this. Uh what's that look like on the economy? It's a portfolio review. Yeah, so it's the portfolio review, but it's the one period ending 630. And then I'll talk briefly about the other one, which is more up-to-date information.

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