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HomeMy WebLinkAboutRetirement Committee - Minutes - 03/03/2005City of Fort Collins General Employees' Retirement Plan GENERAL EMPLOYEES' RETIREMENT COMMITTEE March 3, 2005, MEETING MINUTES Approved as corrected April 7, 2005 COUNCIL LIAISON: Mayor Ray Martinez / t COMMITTEE Susan Lehman, Chair, 221-6813 Bill Switzer, 221-6713 MEMBERS Jim O'Neill, Vice Chair, 221-6779{ PRESENT: Michele Hays -Johnson, 416-2158 � ' ���ti �L�CIt i MEMBERS Dottie Nazarenus, 204-4429 ABSENT: Alan Krcmarik, 221-6788 OTHERS Pat Kahle (Actuary, Milliman) PRESENT: Julie Depperman & Ann Wardle (Finance) Debbie Weedman (Human Resources) Greg Tempel (City Attorney) CALL TO ORDER: Susan Lehman called the meeting to order at 1:21 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. Julie Depperman received a call from a Plan Member who had been given inaccurate information regarding the number of Plan participants, funding status, whether the Plan is insured and other Plan details. Pat Kahle said that public plans are not insured. The Committee discussed distributing the minutes to Members electronically so that Members could have the most current and accurate information available. The minutes are currently posted on the Plan's web site and are available to all City employees. When the Personal Retirement Planning Statements are distributed, a memo will be included that reminds Plan Members where the minutes are posted and what information is accessible on the Plan's web site. Michele Hays -Johnson said that she was asked if Members can attend a personal retirement planning class specific to GERP. Debbie Weedman said she would be willing to put together a 30-minute class presentation and handout, which she will draft for review at the next meeting. 215 North Mason Street • 2nd Floor • PO. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 General Employees' Retirement Committee March 3, 2005, Meeting Minutes Page 2 of 3 Debbie said there was recently a situation in which a Plan Member retired but came back to work for the City as an hourly employee six weeks later, before a retirement distribution had occurred. Because the Plan prohibits in-service distributions, a former employee cannot receive a pension benefit from the Plan if the former employee becomes re-employed with the City in any capacity before receiving a pension benefit. This fact was made known to Plan Members in 2002 via a memo which stated in part: "An employee who terminates all employment with the City without a pre- arrangement for rehiring by the City will be eligible to receive a single -sum benefit, a periodic payment benefit or a retirement annuity benefit. However, if the former employee becomes re-employed with the City in any capacity before the single -sum benefit is actually paid out or before the first periodic payment or monthly annuity is paid, the plan benefit will not be paid out until the employee again terminates employment. Debbie will write a letter to the Member and attach the memo that describes retirement distributions which was provided to all employees in 2002. Debbie said that she reminds Plan Members about this provision during their retirement exit interview. Greg said that the Plan could be changed to allow for distributions following re- employment (in-service distributions). Jim O'Neill asked what it would cost the Plan if Members were allowed to draw retirement and continue to work. Pat said that it would change the actuarial assumptions, and that most plans do not allow in- service distributions. APPROVAL OF MINUTES: Minutes of the February 3, 2005, meeting were distributed. Jim motioned to accept the meeting minutes and Bill Switzer seconded the motion. The Committee approved the minutes unanimously (4-0). DISCUSSION TOPICS: 1. Plan Philosophy: There were no comments on Plan Philosophy. 2. Update on Personal Retirement Planning Statements: The actuary is finalizing the statements. The final statements will be sent to the City no later than March 18. 3. Review and Update of Standing Rules: Julie distributed a copy of the Standing Rules. The handout was reviewed and updated to include the new time and location for Committee meetings. Greg said that the Standing Rules should reflect that election of officers has to be done in February or March. Minor wording changes were made. Jim moved that the Standing Rules be adopted as revised, and Michele seconded the motion. The Committee adopted the Standing Rules unanimously (4-0). (See attachment.) Filename: 2005 GMIN 03 03 Final General Employees' Retirement Committee March 3, 2005, Meeting Minutes Page 3 of 3 4. Election of Officers: Bill nominated Susan as Chair, and Jim seconded the motion. The nomination passed unanimously (4-0). Michele nominated Jim to continue as Vice Chair, and Bill seconded the motion. The nomination was unanimous (4-0). 5. Monthly Investment Report: Julie gave a brief recap of market performance for the first two months of 2005. The benchmark for domestic mutual funds, the S&P 500 index, was down about 4%; whereas, the Plan's domestic funds were up about 3%. Overall, the Plan's market value is up close to 1% year-to-date. The Committee is asking the City Manager's Office for an additional $300,000 contribution to the Plan. Julie expects to know whether it is approved by the next Committee meeting. If approved, it would be the third year that an additional contribution to the Plan was made; $250,000 was given in the previous two years. 6. Other Business: None. Adjournment: The Committee adjourned at 2:25 p.m. TOPICS FOR NEXT REGULAR MEETING The next regular meeting of the Committee will be held on April 7, 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 Draft Actuarial Report Presentation Monthly Investment Report Actuarial Services RFP Other Business GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Plan's web page can be found at www.fcgov.com/cityclerk/retirement.c)hi). The Committee's 2004 Annual Report, 2005 Work Plan, the Plan document, Summary Plan Description, 2004 Actuarial Report 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: 3anuary 6 April 7 February May 5 Mareh 3 June 2 July 7 October 6 August 4 November 3 September 1 December 1 Filename: 2005 GMIN 03 03 Final GENERAL EMPLOYEES' RETIREMENT COMMITTEE STANDING RULES Revised March 3, 2005 Meetings The Committee holds its regular meetings on the first Thursday of the month at 1:15 p.m. in Meeting Room 2A at 215 North Mason Street. 2. The Committee shall meet quarterly at minimum. Such meetings will be scheduled approximately 45 days after a quarter end (March 31, June 30, September 30, and December 31) and will include the General Employees' Retirement Plan investment report on the agenda. Staff Support Staff support may include: A. Members of the Finance Department as needed. B. Human Resources representative for employee benefit support. C. City Attorney's Office representative for legal support. Officers Election of officers shall take place once a year at the February or March meeting. The City Clerk's Office shall be informed of the election of new officers. If an officer's Committee membership expires before the election, an interim officer can be appointed by the Chairperson. 2. The positions of Chairperson and Vice Chairperson are for one-year terms, but are not limited to one term. General The Committee will review the annual actuarial valuation, usually in the second quarter. Personal Retirement Planning Statements showing employee pension benefit projections prepared by the Plan's actuary will be distributed by April of each year. 3. Each year, the Finance Department support staff will make an effort to confirm addresses for terminated vested employees. 4. Past Committee members and Plan members may be asked to serve on a voluntary basis in an ex-officio capacity to assist the Committee in fulfilling its responsibilities. 5. There will be an annual review of the actuarial consultant. Directives (Chronological Order) A draft of the Committee's prior year annual report will be reviewed at the January meeting in anticipation of the January 31 due date in the City Clerk's Office. 2. The Standing Rules shall be reviewed annually at the February meeting in conjunction with the election of officers. 3. A draft of the Committee's ensuing year work plan will be reviewed at the November meeting in anticipation of the December 1 due date in the City Clerk's Office. Approved January, 1992 Revised September, 1994 Revised December 16, 1996 Revised October 5, 2000 Revised February 6, 2002 Revised February 5, 2004 Revised March 3, 2005