HomeMy WebLinkAbout2004 - Retirement Committee - Annual ReportGeneral Employees' Retirement Committee
2004 Annual Report
The General Employees' Retirement Plan (GERP) is managed and administered by the General
Employees' Retirement Committee (GERC) in accordance with the terms of the Plan. The 2004
actuarial report, prepared by Milliman, Inc., Actuaries and Consultants indicates that as of
January 1, 2004, the GERP had 344 active members,112 terminated vested members (includes
disabled members) who continue to accrue benefit service, and 127 retired members for a total of
583 members, as compared to 601 in 2003.
One way to look at the adequacy of Plan funding is to compare the value of benefits under the
plan terms to the value of plan assets as of the valuation date (January 1, 2004). By this measure,
the Plan is fairly well funded, since the actuarial value of plan assets covers 81.9% of the present
value of future benefits, and the market value of plan assets covers 77.1% of the Present Value of
Future Benefits. The Present Value of Future Benefits is $44,235,876 and the Market Value of
Assets is $34,107,332. The Present Value of Future Benefits includes benefits earned to date plus
the value of benefits anticipated to be earned for all expected future service by current
participants. The market value of plan assets exceeds the present value of accumulated Plan
Benefits by 9%, as of January 1, 2004.
Due to 3 years of bear market conditions the Plan is under funded and additional contributions to
the Plan have been requested. The Committee continues working with the Actuary to determine
the best course of action.
In 2004, the Committee was composed of Susan Lehman, Chair, Advance Planning; Jim O'Neill,
Vice -Chair; Michele Hays -Johnson, Utilities, Water Production; Dottie Nazarenus, a retired Plan
member; Bill Switzer, Utilities, Financial Operations; and Alan Krcmarik, Finance Director.
Staff support for the Committee included Greg Tempel, Assistant City Attorney; Debbie
Weedman, Human Resources, Ann Wardle and Julie Depperman, Finance.
Committee Highlights for 2004:
Standing Rules
Standing Rules for the GERC were reviewed and revised as of February 5, 2004.
Personal Retirement Planning Statements (PRPS)
The GERC had the PRPS prepared by the actuary, Milliman, Inc., and distributed them to
individual members on March 21, 2004.
General Employees' Retirement Plan Summary — Update to Reflect Plan Amendments
The Committee began updating the Summary Plan Description to incorporate all Plan
amendments and restatements. The revised Plan Summary will be adopted in January 2005, and
be available via the City's internet.
Retirement Philosophy
The Committee continues discussions with the actuary, Milliman, Inc., and has not determined
what changes may be necessary in this philosophy considering the state of investment returns.
Investment Results
The Annual Rate of Investment Return was 9.1% as of December 31, 2004, compared to 18.8%
as of December 31, 2003. The total Market Value of Assets was $34,107,332 as of January 1,
2004, compared to $36,362,805 as of January 1, 2005; an increase of $2,255,473.