HomeMy WebLinkAboutRetirement Committee - Minutes - 04/01/2004City of Fort Collins
General Employees' Retirement Plan
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
April 1, 2004, MEETING MINUTES
Approved May 6, 2004
COUNCIL LIAISON: Mayor Ray Martinez
COMMITTEE
Susan Lehman, Chair, 221-6813
Dottie Nazarenus, 204-4429
MEMBERS
Jim O'Neill, Vice Chair, 221-6779
Bill Switzer, 221-67}3
PRESENT:
Michele Hays -Johnson, 416-2158�
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MEMBERS
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ASSENT:
ABSENT:
Alan Krcmarik, 221-6788
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OTHERS
Pat Kahle (Actuary, Milliman USA) & Joel Stewart (Milliman USA)
PRESENT:
Greg Tempel (City Attorney's Office)
Debbie Weedman (Human Resources)
Julie Depperman & Ann Wardle (Finance)
CALL TO ORDER: Susan Lehman called the meeting to order at 12:31 p.m.
PLAN MEMBER COMMENTS: The Committee reserves this place on the agenda to
receive comments from Members of the Plan or the public. Debbie Weedman reported
that she has had a couple of questions about the Personal Retirement Planning
Statements but that they were minor clarifications.
APPROVAL OF MINUTES: Minutes of the March 4, 2004, meeting were distributed.
Jim O'Neill moved to approve the minutes and Michele Hays -Johnson seconded the
motion. The Committee approved the minutes unanimously (5-0).
DISCUSSION TOPICS
1. Plan Philosophy: There were no comments on the Plan philosophy.
2. Update on Personal Retirement Planning Statements: Julie Depperman
reported that all statements were distributed to Plan Members on March 31, 2004.
3. Draft Actuarial Report Review: Pat Kahle, Milliman USA, distributed a draft of
the Actuarial Report PowerPoint presentation and a draft of the Actuarial Valuation.
Pat explained the purpose of the Valuation is to determine the funded status of the
Plan, determine the annual required contribution, and review the demographic and
financial experience of the Plan.
215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782
General Employee's Retirement Committee
April 1, 2004, Meeting Minutes
Page 2 of 3
Joel Stewart, Milliman USA, reviewed the summary of the Plan provisions and
participants as of January 1, 2004. The number of active participants decreased from
362 on January 1, 2003, to 344 on January 1, 2004. The average age of active Plan
Members rose from 51.2 to 51.9. The market value of the assets of the Plan
increased during 2003 from $29,081,432 to $34,107,332.
Pat reviewed the actuarial assumptions and Valuation results. The Annual Required
Contribution for 2004 is $1,107,920 or 6.35% of payroll. Asset return is projected at
7.5% per year; the actual return for 2003 was 18.8%. The net effect of changing
some key Actuarial assumptions such as moving from the 1983 Group Annuity
Mortality Table (83 GAM) to the 1994 Group Annuity Mortality Table (94 GAM) and
adjusting the projected inflation numbers was an increase in normal cost and
projected Plan liabilities.
Jim O'Neill moved that the Committee accept the Actuarial Valuation assumptions, the
94 GAM assumption and the inflation assumption changes; Dottie seconded the
motion. The Committee motion passed unanimously (5-0). It was decided that the
Committee will wait until the next meeting to give a final approval of the Actuarial
Valuation after all Committee members have had an opportunity to complete a
thorough review. Greg Tempel referred to page 30 of the draft valuation report,
under "Mortality" and asked Pat to insert "for Actuarial Valuation and not calculating
actuarial equivalents" to the end of the sentence. Pat agreed to make the change.
Pat referred to a one -page summary on Plan termination estimates. If all Plan
Members received a single -sum distribution, the Plan would have the funds to buy
everyone out as of January 1, 2004. However, Plan Members would most likely have
a choice between receiving a single sum distribution and having the Plan purchase
annuities on their behalf. If annuities were purchased for all Plan Members, the Plan
would not have sufficient funds and would fall short by $8.4 million. Bill Switzer asked
if the City could force the Plan to be cashed out; Greg said he did not think that was
possible, baring extraordinary circumstances. The termination estimates are for
informational purposes only.
4. Update on Summary Plan Description: The Committee will review the
handout that Debbie had previously distributed regarding changes to the Plan
Summary handbook, and bring comments and questions to the next meeting. This
was postponed since not everyone has had an opportunity to review the information.
S. Other Business: There was no further business discussed.
Adjournment: There being no further business, the Committee adjourned at 2:12
p. M.
TOPICS FOR NEXT REGULAR MEETING
The next regular meeting of the Committee will be on May 6, 2004, at 1:45 p.m. in
the Council Information Center of City Hall. The tentative agenda includes:
Filename: 2004 04 01 GMIN Final
General Employee's Retirement Committee
April 1, 2004, Meeting Minutes
Page 3 of 3
Plan Member Comments
Approval of Minutes
Plan Philosophy
Approval of Actuarial Valuation Report
Update on Summary Plan Description
Investment Report & Mutual Fund Compliance Report
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The General Employees'
web page can be found at www.fcgov.com/cityclerk/retirement.php. The Committee's
2003 Annual Report, 2004 Work Plan, and monthly minutes are available at this site.
2004 Meeting Schedule:
The regular meeting time for the Committee is at 1:45 p.m. on the first Thursday of
each month. The regular location is the Council Information Center at City Hall. For
2004, the Committee has scheduled the meetings as shown below:
3y-8 Affil 1
Februafy 5 May 6
MaFeh 4 June 3
July 1 October 7
August 5 November 4
September 2 December 2
Filename: 2004 04 01 GMIN Final