HomeMy WebLinkAboutRetirement Committee - Minutes - 02/11/2021
General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES’ RETIREMENT COMMITTEE
MINUTES
FEBRUARY 11, 2021
ZOOM
11:00 AM
Committee Members Present: Clark Mapes, Chair
Kelley Vodden, Vice Chair
Del Bernhardt
Ralph Zentz
Jackie Darner
Others Present: Blaine Dunn
Jenny Lopez Filkins
Joel Stewart, Milliman
Carolyn Koontz
Rodney Albers, Plan Member
Ronan O’Brien, Financial Investment News
___________________________________________________________________
Meeting called to order at 11:05 am
The Committee Chairperson, Clark Mapes, and the staff liaison, Joaquin Garbiso, consulted and
determined that the Committee will conduct this meeting in whole or in part by remote
technology so as to provide reasonably available participation by members of the Committee
and observation by the public, consistent with the requirements of Ordinance No. 79, 2020,
because meeting in person would not be prudent for some or all persons due to current public
health emergency.
1. Consider approving the minutes from the meeting of January 14, 2021.
A motion to approve the minutes was made by Ralph Zentz. Del Bernhardt seconded the
motion. Minutes approved as presented via rollcall; Kelley Vodden, Ralph Zentz, Del Bernhardt,
and Clark Mapes.
2. Citizen Participation and Plan Member Comments - none made or noted
3. Election of Officers
Nominations: Kelley Vodden made a motion to nominate Clark Mapes to continue as Chair for
the GERC. Del Bernhardt seconded the motion and nominated Kelley Vodden to continue as
Vice Chair as well. Roll call vote; yes votes confirmed - Ralph Zentz, Del Bernhardt, Kelley
Vodden and Clark Mapes.
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4. Review Key Assumptions (Joel Stewart, Milliman)
Recommended Assumption Changes;
Inflation Assumption: Consider reduction from 2.5% to 2.25%
Economic - Investment Return / Discount Rate Assumption: Consider change from 6.25%
to 5.5% - 6.0%. Incorporates reduction to inflation assumption. The current assumption
does not significantly conflict with professional judgement of a reasonable assumption as
defined by ASOP27.
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Economic - Salary Scale: Consider reducing underlying wage inflation to 3.25% to reflect
reduction in inflation assumption; no change to Productivity or Merit
Note: Currently there are 34 active employees the plan.
Demographic - Mortality: No change to base tables. Could consider update to current
projection scale. Would likely result in slight decrease in liability.
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Form of Payment upon Retirement - Current assumption is that 15% will elect a lump sum.
No change recommended.
Retirement Age and Form of Payment (Deferred Vested) No change recommended.
Current assumption retirement at age 65 (adopted pre -2001)
30% will elect a lump sum (adopted in 2019)
Other Terminations of Employment - Retain current assumptions due to lack of statistically
significant data.
Motion to Reduce Inflation Assumption from 2.5% to 2.25%
Del Bernhardt made a motion to accept recommendation to reduce Inflation Assumption
from 2.5% to 2.25%
Kelley Vodden seconded the motion.
Roll call; yes votes confirmed by Clark Mapes, Kelley Vodden, Del Bernhardt,
Jackie Darner
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Motion to Reduce Investment Return Assumption from 6.25% to 6.0%
Del Bernhardt made a motion to change the Investment Return Assumption from 6.25%
to 6%
Kelley Vodden seconded the motion
Roll call; yes votes confirmed by Clark Mapes, Kelley Vodden, Del Bernhardt,
Jackie Darner
Motion to Reduce the wage growth assumption from 3.5% to 3.25%
Kelley Vodden made a motion to accept the recommendation to reduce the wage growth
assumption from 3.5% to 3.25%
Del Bernhardt seconded the motion
Roll call; yes votes confirmed by Clark Mapes, Kelley Vodden, Del Bernhardt,
Jackie Darner
Motion to Update Mortality Improvement Projection Scale (MP-2020)
Recommendation to consider using the most recent MP-2020 table
Del Bernhardt made a motion to update the MP-2020 table
Kelley Vodden seconded the motion
Roll call; yes votes confirmed by Clark Mapes, Kelley Vodden, Del Bernhardt,
Jackie Darner
5. Investment Report (Blaine Dunn)
Blaine predicts the plan will be under 30 Active Members this year.
Out of balance on fixed income and creeping close to 25% in the Technology sector
Blaine is looking to selling to rebalance both at the same time
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6. Plan Participant Updates (Blaine Dunn) - none made or noted
7. Other Business:
Del Bernhardt shared that he plans to retire on April 30th
Meeting adjourned at 12:29 pm
Clark Mapes, Chair
Carolyn Koontz, Staff Liaison