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HomeMy WebLinkAbout02/09/2023 - Retirement Committee - Agenda - Regular Meeting City of General Employees Retirement Committee 215 N.Mason Floor PO Box 580 O C O Ins Fo Fort Collins,CO 80522 970.221.6788 970.221.6782-fax fcgov.com GENERAL EMPLOYEES' RETIREMENT COMMITTEE AGENDA FOR FEBRUARY 9, 2023 11:00 am ZOOM MEETING https://us02web.zoom.us/o/8140111859 Meeting ID: 814 0111859 1 . Citizen Participation and Plan Member Comments 2. Consider Approving the Minutes from the Meeting of January 12, 2023 3. Plan Participant Updates (LeeAnna Vargas) 4. Election of Officers 5. Review Key Assumptions to be used in Annual Actuarial Evaluation (Joe[ Stewart) 6. Review GERC Member Acceptance of Trust Form prior to signing 7. Review Investment Report (Blaine Dunn) 8. Other Business City of General Employees Retirement Committee 215 N.Mason ort ollins Fo Floor PO Box 580 Fort Collins,CO 80522 970.221.6788 970.221.6782-fax fcgov.com GENERAL EMPLOYEES' RETIREMENT COMMITTEE ZOOM MEETING MINUTES JANUARY 12, 2023 11 AM Committee Members Present: Clark Mapes, Chair Randy Bailey, Vice Chair Del Bernhardt Ralph Zentz Committee Members Absent; Jackie Darner Others Present: Amber Fluke LeeAnna Vargas Joel Stewart Jenny Lopez Filkins Carolyn Koontz Meeting called to order at 11:02 am 1. Citizen Participation and Plan Member Comments - none noted 2. Consider Approving the Minutes from the Meeting of November 10,2022 Del Bernhardt made a motion to approve the minutes as presented. Randy Bailey seconded the motion. Approval confirmed via roll call; Ralph Zentz, Del Bernhardt, Randy Bailey, and Clark Mapes. 3. Review and consider Plan member request for retroactive payment of benefits due to failure to send eligibility letters (LeeAnna Vargas) We have located everyone and no other retroactive payments are due at this time. Completed 4. Plan Participant Updates (LeeAnna Vargas) We have located all member addresses to send out the annual mailing (the beneficiary form and the personal information form) to all active and term vested members. Still working on locating 2 people. Letters were mailed yesterday to 24 term vested members and information was emailed to 32 active members. We have already received some responses and follow-up questions. Fort Collins The deadline to respond is January 31, 2023. We also created a master list of addresses to use going forward. Letters were not sent to GERP members actively receiving benefits. We reached out to everyone who will be eligible in 2023. And we are working on estimates as they come in. Statements will go out in April - after we receive them from Milliman in March. Blaine Dunn made original request. Jenny Lopez; thank you to LeeAnna and Amber and to the HR team for putting a process in place - great news. 5. Review Draft 2022 GERC Annual Report Ralph Zentz made a motion to approve the 2022 Annual Report as presented. Randy Bailey seconded the motion. Approval confirmed via roll call; Ralph Zentz, Del Bernhardt, Randy Bailey, and Clark Mapes. 6. Review Investment Report (Randy Bailey) SUMMARY The General Employees' Retirement Plan (the"Plan-)had a total market value of S43,850,107 as of December 31.2022,with a year-to-date return of-13.6%. Fixed income investments accounted for 29% of the portfolio's market value. Domestic and foreign equity funds represented 56% and 15% respectively. The asset allocation targets are fixed income. 40%, domestic mutual funds. 45%, and foreign mutual funds: 15%. The Plan investment policy allows for a variance of 10% above or below each of the stated targets. PLAN ACTIVITY AND MEMBERSHIP REVIEW Year to date, contributions of S1,341,392 have been made to the plan. The breakdown of the total amount contributed is$221.392 from the payroll of active plan members and $1,120.000 from supplemental payments. Interest earnings totaled $178,784. Expenses include$306.191 in lump sum distributions, S4,604,194 in retirement payments. and S24,875 in administrative expense. Year to date there are 13 new annuity payments, 3 lump sum payments, and 13 terminations. There are currently 26 active. 46 terminated-vested. and 273 retired Plan members_ QUARTERLY PERFORMANCE & PORTFOLIO REVIEW Purtfuliu Benchmark Market Value of Portfolio Return YTD Return YTD Difference Portfolio Fixed Income 1.5 3.1% -1.4% 12.869,382 Domestic Mutual Funds -17.2% -19.3% 2.1% 24.408,308 International Mutual -18.0% -19.4% 1.4% 6,572.417 Funds 2 Fort Collins CASH AND INVESTMENTS For Securities Held as of December 31,2022 W)j MatuARes %of Me"Sector Par Value Markel Vaue YTM BEY to in HoWngs htaluA Years Fixed Income PoMollo CanmercLW Paper 0.00 0 Treasury 0.00 0 - US Agency BuWts 2.500,000 2.264,740 2.65 0.00 2.405 6.59 US Agency Callables - - 0.00 0.00 0 Corporate Bonds 0.00 0 - Pass Througn Securities - 0.00 0 0.0 Total Bond Portfolio 2,500,000 2.264,74C 265 0.00 2.405 6-6 5% Money Market Fund(Cash) 8.240 8.240 0.00 1 0.0 CRY Irveslnert Pool 10,596,402 10.596,402 1.88 1 0-0 Total Cash f flw 10,604.642 10.604.642 1.88 1 0-0 24% Total Fixed Income 13.104,642 12.869.382 1.54 2-406 1.3 Wtual Funds 30.980.725 7'R. Total GERP Portfolio 43.850,107 100.C`!. QUARTERLY ECONOMIC INDICATORS Economic reports provided the following information regarding the strength of the economy and the pace of inflation. • National Unemployment rate remained constant at 3.5%from the last quarter. • Consumer Confidence increases to 108.3 from 107.8 at the end of last quarter. • Gross Domestic Product for the 3rd quarter 2022 was 3.2%,up from-0.6%at the end of the previous quarter. • CPI year over year is at 7.10%, down from 8.2°�'O' at the end of the previous quarter Inflation is a concern because it erodes the purchasing power of fixed income. 3 Fort Collins GERP Investment Policy Analysis December 31,2022 Investment Policy Analysis Fund Category Allocation Equity Sector Weightings Catapory% Sector%VS Market vs Total PorOolio Strateorc Asset Allocation Market Equity Portfolio Lower Domestic Fund Category Value (20%Miss) L—t Target Upper Limit Value (25%Max) Md-a le Albcaton S 1,299.567 301 Basic Materials $ 1.154.000 3./% Large Value S 1,440.481 3.3% Consumercyrolical S 3,875.356 12.5% Large Stand $ 6,181,818 14.1% Fin -at S. —a S ♦.541.581 14.7% Large Gro•Mn S 5,225,718 11.9% Reel Estate S 1,031.159 3.3% Mad—Blend S 7,728,930 11.6% Comnunicatons Services S 2,061,850 6.7% Medium Value S 2.533.998 5.8% Energy S 1,704,487 5.5% Medium Growth $ - 0.0% Industrials S 3267.561 10.5% Srnal Blend S - 0.0% Technology S 6.306.775 20.4% Consumer Defensive $ 1.906,094 6.2% Sub-total Domestic $ 24,408.308 35% 45% 55% Healthcare $ 4.112.847 13.3% Utilities $ 999214 3.2% ls International Fund Caoory (7.3%M en s:) Other(includes Ca 8 Bonds) f 0.0% Large Blend S 2.209,746 5.0% Total Equity Ponfolro S 30.980.725 100.0% Large Growth S 2,249.971 5.1% PacRdAse-Lg Growth S 2,112,700 4.8% Subtotal lntematonal S 6,572.417 15% 5% 15% 25% Total Equity Portfolio S 30,980.725 Fixed Income S 12,869.382 2M 30% 40% 50% Bond Mutual Funds f 0.0% 0% WA 20% TOIz111O�olr, S 43.850.107 100.0% 100.0% 7. Other Business Please plan to attend the February 9t" and March 9t" GERC meetings as we review assumptions for 2023 at the February meeting and we will need a quorum at the March meeting when the valuation is presented. Meeting adjourned at 11:34 am Clark Mapes, Chair Carolyn Koontz, Staff Liaison 4 City of Fort Collins General Employees' Retirement Plan January 1 , 2023 Actuarial Valuation Assumption Review Joel Stewart, FSA, EA, MAAA Brian Nichols, EA, MAAA FEBRUARY,2023 C■ Milliman Meeting Agenda 13 00000 0000 • Economic Assumptions Inflation Investment Return Salary Scale • Demographic Assumptions Mortality Retirement (active employee and inactive vested) Form of Payment Other Terminations of Employment EllM i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 2 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Necessary Elements of a Valuation Actuaries provide information based on: Data Assumptions . Probability, • Statistics, Actuarial • Financial mathematics Cost So the Plan Sponsor is informed about... Method . Projected annual level of plan Plan of benefits Assets • Funding of those benefits Benefits Valuation Results M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 3 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Pension Plan Equation • Assumptions do affect calculated rates and liabilities • Assumptions do not affect the plan's long-term contribution cost contributions investment earnings ' r $ y $ S 1 Assets $ 1 expenses benefits G This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty M i I I i ma n 4 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Development of projected benefit payments 1/1/2022 valuation's projected benefit payments 2022 projected payments $5.0 million $6 2032 projected payments Actual benefit payments $5 $4.5 million (including lump sums): 2021 = $4.5 million $4 • 2020 = $5.1 million .---Current Retirees ■Future Retirees a c 0 $3 $2 $1 $0 2022 2027 2032 2037 2042 2047 2052 2057 2062 2067 2072 G This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty M i I I i ma n 5 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Economic - ASOP 27 • Actuarial Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring Pension Obligations • Provides guidance to actuaries on selecting economic assumptions for measuring obligations under defined benefit plans (or when providing guidance on assumptions) • Instructs actuary to use professional judgment to estimate possible future economic outcomes • Estimates are based on a mixture of past experience, future expectations, and professional judgment • Consider a number of factors, including the purpose and nature of the measurement, and appropriate recent and long-term historical economic data • Standard explicitly advises the actuary not to give undue weight to recent experience • Standard lays out a general selection process, and then calls for the actuary to select a reasonable assumption • Each economic assumption should individually satisfy this standard • Each economic assumption should be consistent with every other economic assumption over the measurement period • Assumptions selected by others • Assess reasonableness and disclose • Identify if that assumption "significantly conflicts with what the actuary would consider a reasonable assumption" M i I I i m a n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 6 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Economic - Inflation Assumption • Building block for all other economic assumptions (investment return, wage growth, etc.) • The current assumption is 2.25% per year (adopted 2021 ) • Current outlooks: • December 2022 Blue Chip Financial Forecasts projects 10-year average of 2.3%. • Congressional Budget Office's July 2022 report The Long-Term Budget Outlook uses an annualized 30- year growth in CPI of 2.3%. • In its June 2022 Trustees Report, the Social Security Administration's (SSA) ultimate CPI under its intermediate cost assumptions was 2.4%. • Milliman Capital Market Outlook at December 2022 uses a long-term inflation assumption of 2.3%. • Recommendation: Retain current assumption Milliman This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 7 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Economic - Investment Return / Discount Rate Assumption • Current assumption: 6.0% (adopted in 2021 ) - Incorporates underlying inflation assumption of 2.25%, and is net of investment-related expenses • Median expectations using Milliman's capital market outlook model and various time horizons -oh �L 1 d6 1 Current Allocation (30% Fixed Income) 5.9% 6.3% Target Allocation (40% Fixed Income) 5.8% 6.2% • 2022 Horizon Survey 10-year (40 respondents) return estimate is 5.8% based on current allocation • 20-year (24 respondents) estimate is 6.5% • Recommendation: Retain current assumption. M i I I i m a n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Economic - Salary Scale • Three components: Inflation + Productivity + Merit Scale • Current Inflation (2.25%) + Productivity (1 .00%) component is 3.25% (adopted 2021 ); Merit is age-based In its 2022 Trustees Report, the Social Security Administration's (SSA) ultimate Productivity assumption under its intermediate cost assumptions was 1 .15%. 51-year historical average through 2019 was 0.79%. • Current Merit scale (adopted in 2009) has increases <_ 1 .0%; <_ 0.5% beginning at age 55 • Recommendation: Retain current assumption M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 9 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Demographic - Mortality • Current: Pub-2010 for General Employees (healthy lives); Disabled Retiree for Non-Safety (disabled lives); both projected generationally using MP-2020 (base tables adopted in 2019; projection scale in 2021 ) • Discussion • Pub-2010 (published in January 2019) is most recent base table study of public pension plan mortality produced by Society of Actuaries (SOA) • SOA publishes updated projection scale annually (skipped update in 2022 due to COVID impact on data) • Generational projection reflects understanding that a 65 year old today will have a different life expectancy than a 65 year old 20 years from now • Recommendation: Retain current assumption M i I I i m a n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty ,�O or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Retirement (Active Employees) • Current: Table of rates based on age (adopted in 2017) Ag�% Probability Age Probability 55-60 5% 66-68 40% 61-64 10% 69+ 100% 65 65% Experience (actual adjusted to include retirement eligible terminations) F�OJMW2019 2020 202IM&2022 Actual 13 14 6 6 2 41 Expected 11 10 5 5 3 34 A/E 121% • Recommendation: no change M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 11 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Form of Payment upon Retirement (Active Employees) • Current: 15% will elect a lump sum upon retirement (adopted in 2017) • Experience: Lump sums 3 2 1 0 1 7 Total exits 13 14 6 76 2 41 % 17% • Recommendation: no change M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 2 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Retirement Age and Form of Payment (Deferred Vested) • Current: Retire at age 65 (adopted pre-2001 ); 30% will elect a lump sum (adopted in 2019) • Discussion: • Age 65 is Plan's Normal Retirement Age; most deferred vested participants commence at this age • Form of payment election experience: Moms 2019 2020 2022 .&otal Lump sums 2 4 4 3 1 14 Total exits 11 11 9 13 9 53 % 26% • Recommendation: no change M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 13 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Other Terminations of Employment • Current: Withdrawal and Disability table of rates based on age. Withdrawal rates stop upon attainment of early retirement eligibility • Discussion: • Plan experiences significantly fewer terminations and disablements compared to retirement Recommendation: Retain current assumptions due to lack of statistically significant data M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 14 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Summary of Recommendations • No change to the assumptions used in 2022 actuarial valuation M i I I i ma n This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 15 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. Certification Except as otherwise indicated in this presentation, the explanatory notes contained in our January 1, 2022 actuarial valuation report, including statements of reliance and limitations on use, continue to apply. The results in this report were developed using models intended for valuations that use standard actuarial techniques. The intent of the models is to estimate future plan costs. We have reviewed the models, including their inputs, calculations and outputs for consistency, reasonableness and appropriateness to the intended purpose and in compliance with generally recognized and accepted actuarial practice and relevant actuarial standards of practice. Milliman's work is prepared solely for the use and benefit of the City of Fort Collins General Employees' Retirement Plan ("Plan"). To the extent that Milliman's work is not subject to disclosure under applicable public record laws, Milliman's work may not be provided to third parties without Milliman's prior written consent. Milliman does not intend to benefit or create a legal duty to any third-party recipient of its work product. Milliman's consent to release its work product to any third party may be conditioned on the third party signing a Release, subject to the following exception(s): a. The Plan may provide a copy of Milliman's work, in its entirety, to the Plan's professional service advisors who are subject to a duty of confidentiality and who agree to not use Milliman's work for any purpose other than to benefit the Plan. b. The Plan may provide a copy of Milliman's work, in its entirety,to other government entities, as required by law. No third-party recipient of Milliman's work product should rely upon Milliman's work product. Such recipients should engage qualified professionals for advice appropriate to their own specific needs. The consultants who worked on this assignment are pension actuaries. Milliman's advice is not intended to be a substitute for qualified legal or accounting counsel. On the basis of the foregoing, I hereby certify that, to the best of my knowledge and belief, this report is complete and accurate and has been prepared in accordance with generally recognized and accepted actuarial principles and practices. I am a member of the American Academy of Actuaries and meet the Qualification Standards to render the actuarial opinion contained herein. Joel E. Stewart, FSA, EA, MAAA Principal and Consulting Actuary ■ Milliman This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee,and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty 1 6 or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs. COLORADO PRUDENT INVESTOR ACT (Excerpts as of January 2022) § 15-1.1-101. Prudent investor rule (a) Except as otherwise provided in subsection (b) of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this article. (b)The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust. § 15-1.1-102. Standard of care--portfolio strategy--risk and return objectives (a)A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (b)A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust. (c)Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries: (1) General economic conditions; (2)The possible effect of inflation or deflation; (3)The expected tax consequences of investment decisions or strategies; (4)The role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property; (5)The expected total return from income and the appreciation of capital; (6) Other resources of the beneficiaries; (7) Needs for liquidity, regularity of income, and preservation or appreciation of capital; and (8)An asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries. (d)A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets. (e)A trustee may invest in any kind of property or type of investment consistent with the standards of this article. (f)A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise. § 15-1.1-103. Diversification A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying. Page 1 of 5 § 15-1.1-104. Duties at inception of trusteeship Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this article. § 15-1.1-105. Loyalty A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries. § 15-1.1-107. Investment costs In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee. § 15-1.1-1o8. Reviewing compliance Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight. § 15-1.1-log. Delegation of investment and management functions (a)A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) Selecting an agent; (2) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation. (b) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation. (c)A trustee who complies with the requirements of subsection (a) of this section is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated. (d) By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this State, an agent submits to the jurisdiction of the courts of this State. Page 2 of 5 ACCEPTANCE OF TRUST FOR THE CITY OF FORT COLLINS GENERAL EMPLOYEES' RETIREMENT PLAN By execution of this Acceptance of Trust, the undersigned Retirement Committee members agree to be bound by all the terms and provisions of the City of Fort Collins General Employees' Retirement Plan, dated January 1, 2022 (the "Plan") and any policies adopted by the Retirement Committee as fully as if the Retirement Committee members were an original party thereto. Upon execution hereof, each Retirement Committee member acknowledges that he or she has read the trust provisions of the Plan, and all amendments thereto, and understands the contents thereof and hereby agrees to act as a Retirement Committee Member thereunder, to comply with all of its terms and provisions and to manage and hold the fund of the Trust so created for the exclusive benefit of the participants of the Plan. Each Retirement Committee member also acknowledges that he or she has read the Colorado Prudent Investor Act as described in the previous two pages of this document and agrees to comply with it in carrying out his or her duties as a Retirement Committee member IN WITNESS WHERE OF, the undersigned have caused this Acceptance of Trust to be effective this day of 2022. Page 3 of 5 RETIREMENT COMMITTEE MEMBERS; 1, Clark Mapes, Chair, acknowledge that I have read and understood the above terms and obligations and agree to abide by them Date I, Randy Bailey, Co-Chair, acknowledge that I have read and understood the above terms and obligations and agree to abide by them Date I, Del Bernhardt, acknowledge that I have read and understood the above terms and obligations and agree to abide by them Date Page 4 of 5 I, Ralph Zentz, acknowledge that I have read and understood the above terms and obligations and agree to abide by them Date I, Jackie Darner, acknowledge that I have read and understood the above terms and obligations and agree to abide by them Date Page 5 of 5