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HomeMy WebLinkAboutRetirement Committee - Minutes - 10/14/2021 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 ZOOM MEETING MINUTES OCTOBER 14, 2021 11:00 AM Committee Members Present: Clark Mapes, Chair Kelley Vodden, Vice Chair Del Bernhardt Ralph Zentz Jackie Darner Council Liaison: Kelly Ohlson Others Present: Amanda Newton Blaine Dunn Nikki Daniels Jenny Lopez Filkins Joel Stewart, Milliman Carolyn Koontz Ronan O’Brien ___________________________________________________________________ Meeting called to order at 11:06 am 1. The Committee Chairperson, Clark Mapes, and the staff liaison, Nikki Daniels, 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 the current public health emergency. 2. Citizen Participation and Plan Member Comments – none made or noted 3. Update Regarding Administrative Disbursement of Form Letters Nikki Daniels explained that a plan participant, Kevin McBride, contacted Human Resources because he was turning 66 and wanted to get information about his benefits. He said he wanted his benefits starting as soon as he was eligible, and never realized that he had actually been eligible since turning 65. He noted that nobody told him he could get benefits at 65. Nikki confirmed that he had not been sent a standard form letter that should be sent to participants when they reach age 64 ½ under established practice as directed by the GERC. Nikki noted that her predecessor had been sending the form letter, but that she had not been notified of this process when the predecessor left the position. DocuSign Envelope ID: 121DF821-2F91-4AB9-92CA-65F128667760 2 As a result of administrative staffing transitions, the letters have not been sent to 11 GERP members upon turning 64 ½, including Mr. McBride. Nikki and Blaine noted that Mr. McBride will start receiving his monthly benefit starting in November of 2021. Nikki stated that HR has now developed a process to ensure that the form letters will be mailed out on a monthly basis to any participants reaching age 64 ½. 4. Former Employee’s Request for Benefit Payments Since Reaching Age 65 – Discuss Process, Next Steps The GERC, years ago, developed and approved a hearing process for addressing requests by participants for decisions about benefit distributions. Mr. McBride was informed that he could request retroactive payment of the monthly benefit he would have received beginning at age 65, by participating in the hearing process. If Mr. McBride pursues this option, a hearing should be scheduled at an upcoming monthly meeting. Jenny advised the GERC that she could provide legal counsel about the best way to approach such a request for back payment to Mr. McBride in a confidential email; or the GERC could elect to go into executive session for purposes of receiving legal advice. 5. Consider a motion to go into Executive Session to discuss legal issues, process and next steps related to former employee’s request for benefit payments since reaching age 65. Kelley Vodden made a motion for the committee to go into Executive Session “I move that the General Employee Retirement Committee go into Executive Session, as permitted under: ~ARTICLE TWO, SECTION 11(2) of the CITY CHARTER, ~SECTION 2-31(a)(2) OF THE CITY CODE, and ~COLORADO REVISED STATUTES SECTION 24-6-402(4)(e)(Roman Number one), and SECTION 24-6-402(4)(b), for the purpose of conferencing with the attorney advising the General Employee Retirement Committee for the purpose of receiving legal advice on specific legal questions related to failure to send notification letters to participants who have reached age 64.5 and other related plan administration decisions.” Del Bernhardt seconded the motion. Motion approved by roll call; Clark Mapes, Kelley Vodden, Del Bernhardt, Ralph Zentz and Jackie Darner. Committee Zoom meeting adjourned to start a Teams call to conduct the Executive Session. No formal action was taken in the executive session. __________________________________________________________________ Committee Zoom Meeting reconvened and called to order following Executive Session 6. Recommended action for other participants who reached age 65 and did not receive letter normally sent to participants at age 64.5 DocuSign Envelope ID: 121DF821-2F91-4AB9-92CA-65F128667760 3 Clark Mapes: at an upcoming meeting, the GERC would consider the appeal of the participant following his submittal of a request for a hearing according to the previously approved hearing procedure. Per the direction of the GERC, Nikki Daniels will notify Mr. McBride of his option to request a hearing on the topic of retroactive payment of his retirement benefit back to age 65. A question was raised about what action, if any, should be taken with regard to the other 10 participants who did not receive the form letter. Regarding whether to do any additional notification to the other 10, with another letter highlighting that the letter was not sent at 64.5 years of age, Ralph stated that he believes the other 10 participants should be notified of the option to seek a hearing about the benefit they could have elected to take at age 65 if they had received the notification letter that should have gone out at age 64.5. Ralph stated he believes that transparency is important and that if participants are due that money, it’s a matter of making sure that they have the option to do that and not put the burden on them to learn about this on their own, but rather on us, since the mistake was made on our end. Del Bernhardt stated he agrees with Ralph. Kelley Vodden agreed with these comments.. Clark Mapes agreed with these comments. Blaine Dunn noted that the retirement benefit does not increase for term vested once they reach age 65, but we have had members who did not want to take a benefit right at age 65. Jenny Lopez Filkins noted that because there are some participants who may not want to take a benefit at age 65 or have different circumstances than Mr. McBride, it’s important to give the ten participants the option to pursue a hearing and the GERC should not make the decision for the participants. Clark Mapes asked whether the GERC could have the participants submit and then consider them all in one meeting. Jenny Lopez-Filkins said this would be permissible, with consideration of each individual case. Kelly Vodden made a motion for the GERC through its administrative staff support to send a letter to those participants who did not receive the standard letter at age 64 ½ to notify them of the administrative oversight and that they are eligible for retroactive reimbursement back to age 65 if they so request. Ralph Zentz seconded the motion Motion approved by roll call; Clark Mapes, Kelley Vodden, Del Bernhardt, Ralph Zentz and Jackie Darner. Nikki Daniels will send such a letter. Del Bernhardt asked whether, when the letters go out there would be any kind of documentation /delivery confirmation. DocuSign Envelope ID: 121DF821-2F91-4AB9-92CA-65F128667760 4 Nikki Daniels will investigate mail confirmation. Blaine Dunn noted that Nikki will give an update at each meeting going forward regarding how many letters are sent out and to whom. 7. Update Regarding Attorney Fees (Jenny Lopez-Filkins) The GERC passed a resolution a few years ago granting the GERC’s legal counsel the option to seek outside legal guidance if the fee expenditure was anticipated to be less than $1K, and as long as it is disclosed to the committee. Jenny has consulted with outside counsel two times since the last GERC meeting: • A participant did not receive a letter which resulted in a question about the required age of distribution – consulting on that question was $300. • The other matter addressed with outside counsel was related to the legal discussion held in executive session during this meeting and described above. The expenditure is anticipated to be between $300-$500. Jenny requested approval from the GERC to further engage outside counsel on two issues. First, a plan participant who is already receiving a benefit as a former employee had her spouse, who is also a plan member, pass away and had her listed as beneficiary. Jenny would like to confirm that she is eligible to receive both benefits. The anticipated expenditure is approximately $500. Second, GERP changes and updates considering changes in the law or changes made in the administration of the plan are due to be made and consultation and review of outside counsel is necessary. The anticipated expenditure for these services is in $1-2K range and could be higher. Once those amendments are worked on, they will be placed on a GERC agenda for the committee to review, ask questions and approve before going to City Council. It is important to make sure we are in compliance with the plan and with any IRS rules. 8. Consider Approving the Minutes from the Meeting of July 8, 2021 Del Bernhardt made a motion to approve the minutes from the July 8th GERC meeting. Ralph Zentz seconded the motion. Motion approved by roll call; Clark Mapes, Kelley Vodden, Del Bernhardt, Ralph Zentz and Jackie Darner. 9. Review Draft 2022 GERC Work Plan Note; during Covid, we did not have Fiduciary Training last year, but we plan to have it this year. Kelley Vodden made a Motion to accept the 2022 GERC Work Plan as presented. Ralph Zentz seconded the motion to approve. Motion approved by roll call; Clark Mapes, Kelley Vodden, Del Bernhardt, Ralph Zentz and Jackie Darner. The approved 2022 GERC Work Plan will be posted on the GERC web page; https://www.fcgov.com/cityclerk/retirement DocuSign Envelope ID: 121DF821-2F91-4AB9-92CA-65F128667760 5 10. Review Investment Report (Amanda Newton) 11. Other Business - none Meeting adjourned at 12:30 pm Clark Mapes, Chair Carolyn Koontz, Staff Liaison DocuSign Envelope ID: 121DF821-2F91-4AB9-92CA-65F128667760