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HomeMy WebLinkAboutRetirement Committee - Minutes - 01/06/2005General Employees' Retirement Plan GENERAL EMPLOYEES' RETIREMENT COMMITTEE JANUARY 6, 2005, MEETING MINUTES Approved February 3,2005 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, 221-6713 PRESENT: Michele Hays -Johnson, 416-2158 Alan Krcmarik, 221-6788 ��jj/ OTHERS Pat Kahle (Actuary, Milliman) C PRESENT: Greg Tempel (City Attorney's Office) Julie Depperman & Ann Wardle (Finance) Debbie Weedman (Human Resources) CALL TO ORDER: Susan Lehman called the meeting to order at 1:40 p.m. PUBLIC PARTICIPATION AND PLAN MEMBER COMMENTS: The Committee reserves this place on the agenda to receive comments from Members of the Plan or the public. Michele Hays -Johnson said she was asked by a Member why his benefit would be reduced if he retires three months after age 65. Michele was uncertain as to where the Member received this information. Michele will recommend that the Member meet with Debbie Weedman to review his benefit calculations. Alan Krcmarik and Pat Kahle were both concerned with the possibility of misinformation and want to get correct information to the Member as soon as possible. APPROVAL OF MINUTES: Minutes of the December 9, 2004, meeting were distributed. Alan noted that the Annual Report was an attachment to the minutes. One clarification was suggested. Bill Switzer moved approval of the minutes as amended, and Jim O'Neill 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: A draft of the Summary Plan Description handbook dated January 6, 2005, was distributed and reviewed. Alan had incorporated changes Greg Tempel suggested prior to the meeting. Alan moved that the Committee accept the handbook as amended today as the completed draft that will be put into a final Summary Plan Description document for 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 General Employees' Retirement Committee January 6, 2005, Meeting Minutes Page 2 of 3 distribution; Jim seconded the motion. The motion passed unanimously (6-0). The handbook will be put on the web as an adobe file. A notification describing the availability of the handbook will be included with the Personal Retirement Planning Statements. 3. 2004 Annual Report: The Committee reviewed the latest draft of the Annual Report. The investment result data will be updated by Alan and Julie Depperman. Jim moved adoption of the 2004 Annual Report as updated, and Alan seconded the motion. The motion passed unanimously (6-0). Monthly Investment Report: Julie distributed preliminary information on the Plan portfolio as of December 31, 2004. The total Plan portfolio is up over 9%. The Plan's target rate of return is 7.5%. The total market value is over $36.2 million. Julie will present the complete December 2004 quarterly report at the next meeting. Other Business: Debbie passed out a domestic relations order for a deferred vested Member named Bagge. (Debbie collected the copies of the order after the information was reviewed and discussed.) Greg had reviewed it as to form and found it to meet the Plan guidelines. Greg said that the spouse is required to take a lump -sum distribution. Debbie had given Mr. Bagge a projection as of October 1, 2004. Greg said the distribution should be as of March 1, 2005, and not before then. Alan motioned to comply with the order, and Jim seconded the motion. The motion passed unanimously (6-0). Julie said that if the spouse completes the forms prior to March 15, the distribution will be made at the end of March. As long as the Member's single sum benefit exceeds $5,000, he is entitled to stay in the Plan. Distribution packages will be sent to each of them. Pat provided a sample Personal Retirement Planning Statement from last year. Pat asked what the salary projections are for the City. Jim said he did not think we should project any salary increases for the statements. Pat recommended dropping it some but said to drop it to zero would be a huge change. Alan said that the ten- year budget shows no salary increases; they will be adopting a two-year budget later this year for 2006 and 2007. Alan said the statements should be as realistic as possible. He mentioned that the statements could be updated to explain that the salary projections have been reduced from last year due to current budget conditions. Michele said she thinks the picture should be as accurate as possible and suggested putting in no salary increases for the entire projection period. Bill recommended maintaining a flat salary assumption until 2008. Pat said the inflation component changed from 31/2% to 21/2% last year. Alan asked Pat if she would be comfortable with matching a 21/2% salary increase with a 21/2% inflation assumption; Pat said that she would be comfortable with that. Dottie Nazarenus said she thinks they should leave the salary scale at zero for a couple of years. Bill moved to increase the scale to 21/2% beginning in 2008, and Jim seconded the motion. Alan informed the Committee about the proposed repeal of the City's sales tax on grocery food. If voters approve the repeal, the resulting loss of sales tax revenue Filename: 2005 GMIN 0106 FINAL General Employees' Retirement Committee January 6, 2005, Meeting Minutes Page 3 of 3 would decrease the likelihood that the City of Fort Collins will make additional contributions to the Plan to offset the unfunded liability. It is within the campaign guidelines for boards and commissions to take an official position on the proposed repeal of the grocery tax. Alan said the long-term funding of the Plan needs continued additional funding based on actuarial studies. Jim moved that this board take a position against the repeal of the grocery tax and ask Council to make a resolution to that effect; it was seconded by Bill (approved 6-0). Alan will get an opinion on letting current members know through email and possibly send post cards to retirees and deferred vested employees. Bill reiterated the Committee's position is that we officially oppose the repeal and are asking Council to do the same. Bill said he will be unable to attend the February meeting. Adjournment: The Committee adjourned at 3:14 p.m. TOPICS FOR NEXT REGULAR MEETING The next regular meeting of the Committee will be held on February 3, 2005, at 1:15 p.m. in meeting room 2A at 215 North Mason Street. The tentative agenda includes: Public Participation & Plan Member Comments Approval of Minutes Plan Philosophy Review of Personal Retirement Planning Statements 2004 Year-end and Quarterly Investment Report Other Business GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Plan's web page can be found at w-ww.fcgov.com/cityclerk/`retirement.phhp. The Committee's 2004 Annual Report, 2005 Work Plan, and monthly minutes are available at this site. 2005 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 215 North Mason Street, meeting room 2A. For 2005, the Committee has scheduled the meetings as shown below: 3arblaFy-6-- April February 3 May 5 March 3 June 2 July 7 October 6 August 4 November 3 September 1 December 1 Filename: 2005 GMIN 01 06 FINAL