HomeMy WebLinkAboutRetirement Committee - Minutes - 08/05/2004City of Fort Collins
General Employees' Retirement Plan
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
August 5, 2004, MEETING MINUTES
Approved October 7, 2004
COUNCIL LIAISON: Mayor Ray Martinez�/� t
COMMITTEE Susan Lehman, Chair, 221- 13 att Dottie Nazarenus, 204-4429
MEMBERS Jim O'Neill, Vice Chair, 221-6779 Bill Switzer, 221-6713
PRESENT: Michele Hays -Johnson, 416-2158 Alan Krcmarik, 221-6788
OTHERS Pat Kahle (Actuary, 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 1:57 p.m.
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 June 3, 2004, meeting were distributed.
Jim O'Neill moved approval of the minutes, and Alan Krcmarik seconded the motion.
The Committee approved the minutes unanimously (6-0).
DISCUSSION TOPICS
1. Plan Philosophy: There were no comments on Plan Philosophy.
2. Update on Summary Plan Description: The Committee continued to review
the Summary Plan Description Handbook. The changes that were suggested are
highlighted in the attachment to these minutes.
(Note: Jim and Michele Hays -Johnson left at about 3:00 p.m.)
At the next meeting, the Committee will resume the review of the Summary Plan
Description starting with the spousal consent section. Committee members were
asked to look closely at the booklet and compare the suggested changes to the Plan.
3. Monthly Investment Report: Julie Depperman distributed and reviewed the
investment report for the quarter ended June 30, 2004. Julie reported that the total
market value of the Plan at June 30, 2004, was $34,504,390. Year-to-date, the
return on the Plan's assets was 1.79% or approximately $400,000. Julie mentioned
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
August 5, 2004, Meeting Minutes
Page 2 of 2
that the biggest news in the market during the second quarter was that the Federal
Reserve raised the Federal Funds rate to 1.25%, after it had been at 1.00%, the
lowest rate since 1958. In the June quarter, the net cash outflow from Plan revenues
and expenses totaled $103,000. Julie said the equity markets continued to drop after
June 30 and that the Plan's mutual funds (both international and domestic) are being
hurt at this time.
Julie provided a second handout on the Plan's Mutual Funds Quarterly Compliance
Analysis. Two of the Plan's mutual funds were downgraded by Morningstar. Alan and
Julie have placed the Dreyfus Emerging Leaders fund on a "watch list". The fund was
purchased as a small cap investment, recently, due to asset growth, the fund has had
to invest in mid -cap funds.
4. Other Business: Alan said that he put in a request for $400,000 of additional
City contributions to the Plan in next year's budget and every year after that,
increasing by $50,000 after the second year and ongoing. Alan said he turned in the
request just last week. Alan indicated that due to investment yields the Plan is likely
to fall short of the annual target. This means a loss in Actuarial Value of Assets on the
five-year smoothing table.
Adjournment: The Committee adjourned at 3:44 p.m.
TOPICS FOR NEXT REGULAR MEETING
The next regular meeting of the Committee will be on September 2, 2004, 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
Update on Summary Plan Description
Monthly Investment Report
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The General Employees'
web page can be found at www.fcciov.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:
my ' neeledj October 7
August- 5 November 4
September 2 December 2
Filename: 2004 GMIN 08 05 FINAL