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HomeMy WebLinkAboutRetirement Committee - Minutes - 01/10/2002GENERAL EMPLOYEES' RETIREMENT COMMITTEES January 10, 2002, MEETING MINUTES COUNCIL LIAISON: Mayor Ray Martinez COMMITTEE Susan Lehman, 221-6813 MEMBERS Bill Switzer, 221-6713 PRESENT: Jim O'Neill, 221-6779 OTHERS Nancy Wagner (Milliman USA) PRESENT: Julie Depperman (Finance) Approved, as amended, February 7, 2002 Michele Hays -Johnson, 416-2158 Dottie Nazarenus, 204-4429 Alan Krcmarik, 221-6788 Greg Tempel (City Attorney's Office) Vincent Pascale (Human Resources) CALL TO ORDER: Chair Susan Lehman called the meeting to order at 1:38 p.m. Susan welcomed Jim O'Neill to his first meeting as a Committee member. PLAN MEMBER COMMENTS: There were no Plan Member comments. APPROVAL OF MINUTES: Alan Krcmarik handed out the minutes for the December 13, 2001, meeting. Bill Switzer moved to approve the minutes and Alan seconded the motion. The Committee approved the minutes 5-0. Jim asked if the draft minutes of the meetings could be distributed to Plan members before the meeting. The Committee had reviewed this request twice before and reiterated that it preferred to release the minutes after they have been reviewed and approved at the following meeting. DISCUSSION ITEMS Retirement Philosophy Jim asked about the death benefit provisions of the Plan. According to the Plan, when a Member passes away prior to making a retirement election, the spouse may receive a single - sum payment equal to 47% of the amount the Member would have been eligible to receive. Nancy Wagner provided some background on how Plans are created and the provisions that are typical. She indicated the 47% figure was a reasonable actuarial equivalent to retirement benefits that would be available to a Member and spouse that choose a 50% joint survivor benefit. The Committee discussed whether changing the Plan to allow a full distribution of the Members benefit would have an adverse impact on the Plan. 2. Proposed Change to Address Part-time Service Equity The Committee briefly discussed a question raised by Dottie Nazarenus. Dottie expressed concern that the proposed change might have some additional cost to the Plan. The Committee discussed the process that it is following. Staff will complete the analysis of Filename: GMIN 2002 UanF.doc Genera, Employees' Retirement Committee January 10, 2002 Page 2 of 3 Member records and report the findings to the Committee. The findings should provide a better estimate of potential costs. 3. Annual Report Susan handed out copies of the draft annual report that she prepared. The Committee Members reviewed and discussed the report and suggested a few revisions. Michele Hays - Johnson moved to approve the report with the revisions and Dottie seconded the motion. The Committee approved the report as revised. Susan indicated she would make the revisions and forward the report to the City Clerk's Office prior to January 31, 2002. 4. Annual Investment Update Julie Depperman provided an overview of the investment results for assets of Plan for the year 2001. The fixed income and cash investments in the portfolio achieved a total return of approximately 5.93%. The equity portion of the portfolio lost 10.86% of its value in 2001. The weighted return was-4.35%. In February staff will present the full report and flow of funds. Nancy mentioned that our investment results are among the best she has seen so far. The market was extremely difficult for all investors in 2001. The full annual report will be available at the February meeting. Other Business The Committee received copies of the standing rules, which will be reviewed at the next meeting. The Committee discussed the need to review actuarial assumptions for the annual valuation report. Nancy will lead this discussion at the next meeting. Nancy and staff reviewed the data necessary for the valuation report and when it will be forwarded to Milliman. Susan shared some of the pension publications and conference information that she had received in the last month. Adjournment: The meeting adjourned at 2:25 p.m. SCHEDULE OF NEXT REGULAR MEETING The next regular meeting of the Committee will be on February 7, 2002, at 1:15 p.m. in the Council Information Center of City Hall. The tentative agenda includes: Plan Member Comments Approval of Minutes Election of Officers Retirement Philosophy Actuarial Assumptions Review of Standing Rules Review of Death Benefit to Surviving Spouse Genera. Employees' Retirement Committee January 10, 2002 Page 3 of 3 Investment Report Plan Change Status Report Other Business GENERAL EMPLOYEE'S RETIREMENT PLAN WEB PAGE: The minutes will available at www.fcgov.com/cityclerk/retirement.php. Staff will be working to enhance the Committee and Plan information on the site. 2002 Meeting Dates: The regular meeting time for the Committee is at 1:15 p.m. on the first Thursday of each month. The regular location is the Council Information Center at City Hall. For 2002, the Committee has scheduled the following meetings. danuafy 10 April 4 July 11 October 3 February 7 May 2 August 1 November 7 March 7 June 6 September 5 December 5