HomeMy WebLinkAboutRetirement Committee - Minutes - 12/05/2002City of Fort Collins
Genes.., Employees Retirement Plan
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
December 5, 2002, MEETING MINUTES
COUNCIL LIAISON: Mayor Ray Martinez
COMMITTEE
MEMBERS
PRESENT:
OTHERS
PRESENT:
Approved January 9, 2003
Dottie Nazarenus, 204-4429
Jim O'Neill, 221-6779
Alan Krcmarik26788 Z
Pat Kahle (Actuary, Milliman USA)
Greg Tempel, City Attorney
Debbie Weedman (Human Resources)
Julie Depperman & Ann Wardle (Finance)
Susan Lehman, Chair, 221-6813
Michele Hays -Johnson, 416-2158
Bill Switzer, Vice Chair, 221-6713
CALL TO ORDER: Susan Lehman called the meeting to order at 1:20 p.m. A quorum
was constituted with all six members of the Committee present. Pat Kahle, an actuary
from Milliman USA, was introduced. Pat will provide actuarial support when Nancy
Wagner is not available.
PLAN MEMBER COMMENTS: The Committee reserves this place on the agenda to
receive comments from Members of the Plan or the public. The minutes of past
meetings have been posted on the web site; it was agreed that they would not be
posted until after the Committee approves them. The Committee also intends to post
the Quarterly Investment Reports on the web site.
APPROVAL OF MINUTES: Alan Krcmarik distributed the November 7, 2002,
meeting minutes. Jim O'Neill moved approval of the minutes with minor wording
corrections and Bill Switzer seconded the motion. The Committee approved the
motion unanimously (6-0).
DISCUSSION TOPICS
1. Plan Philosophy: There were no comments.
2. Discussion of Funding Options: At the November meeting, the Committee
agreed that Alan should draft a memo to the City Manager describing the
underfunded status of the Plan and providing the Committee's recommendations to
bring the Plan back to a fully funded status. In the memo, Alan used the actuarial
value of assets, which indicates additional annual funding of $250,000 and
recommended the additional funding be spread among various City departments.
Two charts previously discussed were also incorporated into the memo. Alan
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General Emplc'-2's Retirement Committee
December 5, 2002, Meeting Minutes
Page 2 of 3
intends to discuss the additional funding requirements with department managers.
If the City Manager agrees, Alan would like to come up with a way that these funds
could be transferred before year-end.
The City's pension liabilities will be disclosed in the annual financial report, and the
three consecutive years' losses may be a red flag to the bond rating agencies upon
their review. Underfunded pension liabilities are now a nationwide problem. Plan
sponsors will be evaluated by how they response to the problem.
Alan hopes the City Manager will consider the supplemental funding request and
noted that the Committee is not asking for the higher, $700,000 annual figure,
provided by the actuary but is using the actuarial value of assets and is requesting
$250,000 per year instead. This is proactive a response to the problem, it may not
be a permanent solution. Alan is hopeful $250,000 of supplemental funds will be
the first step towards correcting the underfunded status of the Plan. The memo
Alan distributed will also be provided to City Council members. Alan will check with
the City Manager's Office to see if they object to the memo being distributed to
Plan Members with the December meeting minutes.
3. Annual Report Preparation: Susan distributed copies of the second draft of the
2002 Annual Report. The Committee must submit the report to the City Clerk's
office by January 30. The Committee suggested minor wording changes. Susan
will incorporate the changes and bring a final draft to the January meeting.
4. Status on Full-Time/Part-Time Plan Change: The Committee has discussed
this change to the Plan at length in previous meetings, and it was agreed to move
towards implementation and to make this the first item on the January meeting
agenda. Committee Members recognize the need to provide background to Plan
Members through informational materials and outreach meetings. The Committee
will be prepared to discuss this item at the January meeting.
S. Monthly Investment Update: Julie Depperman distributed and reviewed the
year-to-date performance of the Plan portfolio. The portfolio was down over 100/0
on September 30`h and is now down a little over 6%. The positive trend in the
stock markets has been encouraging during the past two months. Julie reported
that most of the Plan's mutual funds have been outperforming their benchmarks.
6. Other Business: The January and July meetings have been rescheduled to the
second Thursday of the month at 1:30 due to scheduling conflicts.
Adjournment: There being no further business, the Committee adjourned at 3:25
p. M.
Filename: 2002 GM1N 12 December Final
General Emplc^'e's Retirement Committee
December 5, 2002, Meeting Minutes
Page 3of3
TOPICS FOR NEXT REGULAR MEETING
The tentative agenda for the January 9 meeting includes:
Plan Member Comments
Approval of Minutes
Plan Philosophy
Status on Proposed Part -Time Plan Change
Approval of Annual Report
Discussion of Funding Options
Quarterly Investment Update
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Retirement
Committee's web page can be found at www.fcaov.com/cityclerk/retirement.[2ho .
The Committee's 2001 Annual Report, 2002 Work Plan, and monthly minutes are
available at this site.
2003 Meeting Schedule:
The regular meeting time for the Committee is at 1:15 p.m. on the first Thursday of
each month. The regular location is the Council Information Center at City Hall. For
2003, the Committee has scheduled the meetings as shown below:
January 9
April 3
July 10
October 2
February 6
May 1
August 7
November 6
March 6
June 5
September 4
December 4
Filename: 2002 GMIN 12 December Final