HomeMy WebLinkAboutRetirement Committee - Minutes - 06/02/2005City of Fort Collins
General Employees' Retirement Plan
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
June 2, 2005, MEETING MINUTES
APPROVED ON July 28, 2005
COUNCIL LIAISON: Councilman Ben Manvel//�� Atl
COMMITTEE Susan Lehman, Chair, 221-684WChuck Seest, 221-6788
MEMBERS Jim O'Neill, Vice Chair, 221-6779 Bill Switzer, 221-6713
PRESENT: Dottie Nazarenus, 204-4429
MEMBERS Michele Hays -Johnson, 416-2158
ABSENT:
OTHERS Greg Tempel (City Attorney)
PRESENT: Julie Depperman & Ann Wardle (Finance)
Debbie Weedman (Human Resources)
Pat Kahle (Milliman)
CALL TO ORDER: Susan Lehman called the meeting to order at 1:22 p.m.
Michele Hays -Johnson had sent Susan Lehman an email message saying that she is
on vacation this week.
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. Bill Switzer said he has had about four people ask him about the
possible options, and he explained that the Committee was not proposing a change.
Susan said people she spoke to were fine once she explained that what they have
to date is not going to change.
APPROVAL OF MINUTES: Minutes of the May 5, 2005, meeting were distributed.
Since the last meeting, Julie Depperman and Chuck Seest met with the City
Manager, and he wants to put $700,000 of ongoing additional contributions into the
budget. It was agreed by the Committee that a bulleted listing of options be struck
from the minutes, especially given that this is a moot point for 2006 and 2007.
Julie noted that the City Manager's Office wanted to identify and discuss every
option that would have a financial impact on the Plan; however, they will be
submitting an offer in the Budgeting for Outcomes process to continue the Plan as it
now is. Bill Switzer said that he would want to put the list in future minutes if this
decision were to be reversed. Chuck Seest made a motion to accept the minutes of
the May 5, 2005, meeting as amended, and Jim O'Neill seconded the motion. The
Committee approved the minutes unanimously (5-0).
215 North Mason Street • 2nd Floor • F.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782
General Employees' Retirement Committee
June 2, 2005, Meeting Minutes
DISCUSSION TOPICS: Page 2 of 3
1. Plan Philosophy: There were no comments on Plan Philosophy.
2. Update on Plan Funding Status: Two offers will be made, and it is intended
that additional funds be infused into the Plan on an ongoing basis. If the market
were to come back, the additional funds could be cut back. Pat Kahle distributed a
handout covering Plan termination estimates, which is something they complete
with the yearly valuation. The handout provided annuity purchases at 4.50% and
5.00% as compared with lump -sum payments. Pat noted that Members would
select annuities unless they had only a short time to receive their pension. Pat also
distributed a second handout on changing the benefit formula. Diane Jones had
asked her to calculate what it would take to bring the contribution rate down to
4.5%. One way of bringing the contribution rate down to 4.5% of payroll would be
to change the formula from 1.5% of credited service through January 1, 2005 to
0.75% of credited service years after January 1, 2005 times the average monthly
compensation.
3. Update on Selection of Actuarial Firm: Jim reported that Milliman was
selected by him, Julie Depperman, Dottie Nazarenus, and Susan Lehman to
continue as Actuary for the Plan. Jim said we will maintain current rates through
the end of this year. Jim is putting the contract together.
4. Monthly Investment Report: There was no handout. Julie said the Plan is up
0.3% year to date and is valued at $36.3 million. The Plan is outperforming its
benchmarks in all areas. Julie said that while the Plan is beating its benchmarks,
the market has not been good so far this year with the Plan is up only three -tenths
of a percent year to date through May.
4. Other Business: Bill Switzer asked when initial offers are due. Initial offers
are due June 14, 2005; the second sets of offers are due July 8. Jim O'Neill said he
believes final offers then go to the City Manager's Office and that Council could still
make changes. Julie said that the Plan is not under funded at this point in time but
that it's projected to be under funded in the future. Julie said the City is taking a
positive stance and is not leaving it as someone else's problem in the future. Chuck
Seest said that the fact they are asking for offers for a two-year phase in and one
with a four-year phase in is a very good sign. Bill said that the City is still legally
obligated.
Adjournment: The Committee adjourned at 2:18 p.m.
TOPICS FOR NEXT REGULAR MEETING
The next meeting of the Committee will be held on July 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
General Employees' Retirement Committee
June 2, 2005, Meeting Minutes
Page 3 of 3
Plan Philosophy
Update on Plan Funding Status
Update on Selection of Actuarial Firm
Monthly Investment Report
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Plan's web page
can be found at www.fcciov.com/cityclerk/retirement.php. The Committee's 2004
Annual Report, 2005 Work Plan, 2004 & 2005 Actuarial Reports, Plan document,
Summary Plan Description 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:
3anwaFy-6 Aril-7 July 7 (to be held July 28) October 6
F-ebwaFy3 A4ay August 4 (to be held July 28) November 3
Mareh 3 gune 2 September 1 December 1