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HomeMy WebLinkAboutRetirement Committee - Minutes - 01/08/2004General Employees' Retirement Plan gh City of Fort Collins GENERAL EMPLOYEES' RETIREMENT COMMITTEE January 8, 2004, MEETING MINUTES Approved February 5, 2004 COUNCIL LIAISON: Mayor Ray Martinez COMMITTEE Susan Lehman, Chair, 221-6813 Jim O'Neill, 221-6779 MEMBERS Bill Switzer, Vice Chair, 221-6713 Dottie Nazarenus, 204-4429 PRESENT: Michele Hays -Johnson, 416-2158 Alan Krcmarik, 221-6788 OTHERS Pat Kahle (Actuary, Milliman USA) A%z��+�, 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 1:43 p.m. All members of the Committee were present. PLAN MEMBER COMMENTS: The Committee reserves this place on the agenda to receive comments from Members of the Plan or the public. There were no comments. APPROVAL OF MINUTES: Minutes of the December 4, 2003, meeting were distributed. Michele Hays -Johnson moved approval of the minutes and Jim O'Neill seconded the motion. The Committee unanimously approved the minutes (6-0). DISCUSSION TOPICS 1. Plan Philosophy: There were no comments on Plan philosophy. 2. Annual Report: Copies of the Committee's 2003 Annual Report were distributed and reviewed by the Committee. Alan Krcmarik said he added a section describing the Plan's investment results for the year. Alan moved to accept the 2003 Annual Report accepted and that it be forwarded to the City Clerk by January 31, 2004. Bill Switzer seconded the motion. The motioned passed unanimously (6-0). 3. Investment Update: Julie Depperman distributed the Plan's Investment Report for the Quarter and Year Ended December 31, 2003. The Plan's investment return for the year was 16.15%; the market value of assets increased by $4.7 million. The total market value of the Plan at year end was $33,778,454. Julie provided a brief overview of the bond market, domestic stock market, and international stock market. General Employee's Retirement Committee January 8, 2004, Meeting Minutes Page 2 of 3 In the December quarter, the City contributed $207,414 to the Plan; investment earnings from the fixed income portfolio totaled $95,988; expenses from the Plan for the quarter included $6,162 in lump -sum distributions, $271,529 in retirement payments, and $1,183 in administrative expense; and the result was a net cash inflow to the Plan of $24,528. For the year, the Plan is projected to record mutual fund dividends of $145,522 and a combined realized and unrealized gain of $4.8 million. The result is a net change in the portfolio's market value of $4,695,989 for 2003. The Plan's shares in the Janus funds were liquidated during the quarter. During the quarter, $500,000 of the domestic large cap American Amcap Fund A were purchased; and $250,000 of international large cap Julius Baer Equity International A shares were added to the portfolio. Julie said the annual report may change slightly as accounting makes final entries. The figures do not include the $250,000 of additional contributions which the Plan hopes to receive from the City to help fund the current unfunded liability. Julie distributed a second handout covering mutual funds that have been purchased; they chose two five star rated funds in the large cap category. Alan mentioned that they anaylzed many funds in an attempt to locate an international fund that is high in return and low in risk. Alan suggested the Committee might want to review the investment guidelines within the Plan's investment policy to allow more flexibility when selecting securities. He said everyone will be given a copy of the investment policy at the March meeting. Greg Tempel advised that those investment policy changes require the approval of the Board, not the approval of the City Council. 4. Other Business: Pat Kahle, Milliman USA, distributed a handout of the 2004 Actuarial Work Plan. Pat said that January is a data collection period for creation of the Personal Retirement Planning Statements and the Actuarial Report. Debbie Weedman and Julie will have a conference call with Milliman USA to discuss the data requirements. Milliman USA will review the data and demographic experience in February. In March, the actuarial assumptions will be discussed and revised with the Committee. Pat said they will add the cost of buying out the Plan to the Actuarial Report. Personal Retirement Planning Statements will be created and delivered in March. In April, the Preliminary 2004 Actuarial Valuation will be presented to the Committee. The final actuarial report will be produced and delivered in May. Julie reported that the Council Information Center is not available for the Committee's regularly scheduled meetings until 1:30 p.m. The Committee agreed to begin the meetings at 1:45. Alan moved that the official start times of the Committee meetings be moved to 1:45; Susan seconded the motion. Jim said he had a contractual matter to discuss with Milliman USA. Milliman USA requested a change to their contract which included limiting the City's ability to use excerpts from the Actuarial Report. The City uses excerpts in the Comprehensive Annual Financial Report and when providing information to analysts for bond issues. filename: 2004 GMIN 010804 Final General Employee's Retirement Committee January 8, 2004, Meeting Minutes Page 3 of 3 Greg indicated that the Actuarial Report is considered a public document and falls within the open records act. Pat said she will get some new language for excerpts and send it to Jim. At the February meeting, Committee Officers will be elected and the Standing Rules will be updated. Adjournment: There being no further business, the Committee adjourned at 2:32 p.m. TOPICS FOR NEXT REGULAR MEETING The next regular meeting of the Committee will be on February 5, 2003, at 1:45 p.m. in the Council Information Center of City Hall. The tentative agenda includes: Plan Member Comments Approval of Minutes Plan Philosophy Election of Officers Review and Update of Standing Rules Monthly Investment Update Other Business GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The General Employees' web page can be found at www.fcaov.com/cityclerk. 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: daRaafy-8 April February 5 May 6 March 4 June 3 July 1 October 7 August 5 November 4 September 2 December 2 filename: 2004 GMIN 010804 Final