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HomeMy WebLinkAboutRetirement Committee - Minutes - 11/09/2005General Employees' Retirement Plan GENERAL EMPLOYEES' RETIREMENT COMMITTEE November 9, 2005, MEETING MINUTES APPROVED ON December 15, 2005 COUNCIL LIAISON PRESENT: Councilman Ben Manvel �,(/� COMMITTEE MEMBERS PRESENT: Susan Lehman, Chair, 221-6813CJ" Michelle Hays -Johnson, 416-2158 Dottie Nazarenus, 204-4429 Charles Seest, 221-6788 Bill Switzer, 221-6713 COMMITTEE MEMBERS ABSENT: Jim O'Neill, Vice Chair, 221-6779 OTHERS PRESENT: Pat Kahle (Actuary, Milliman) Greg Tempel (City Attorney's Office) Debbie Weedman (Human Resources) CALL TO ORDER: Susan Lehman called the meeting to order at about 1:45 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. Bill Switzer reported there are still concerns regarding the Plan and its stability. Since another Plan Member had similar concerns and attended the July 28, 2005, meeting, the Board recommended that Plan Members review the minutes of that meeting for answers, if they have further concerns they are welcome to attend a meeting to discuss them further. APPROVAL OF MINUTES: Minutes of the July 28, 2005, meeting were distributed; the approval of these minutes was tabled until the November 9 meeting. Dottie Nazarenus moved to approve the July 28, 2005, minutes and the motion was seconded by Michelle Hays -Johnson. The motion passed unanimously (5-0). DISCUSSION Topics: 1. PLAN PHILOSOPHY: There were no comments on Plan Philosophy. 2. UPDATE ON THE 2006-2007 BUDGET AS RELATED TO THE PLAN: Chuck reported the 2006- 2007 Budget contains a phased in approach for the General Employees' Retirement Plan to fund predicted shortfalls of $700,000 over a four-year period. The City Manager asked Chuck to prepare a Memo for Council regarding funding of this liability in which there is a summary of 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 November 9, 2005, Meeting Minutes Page 2 of 2 the situation, the background, and the contributing factors to the projected shortfall for the Plan. This Memo was distributed to the Board and is attached to these minutes as reference. Chuck stated that the first reading for the 2006-2007 Budget has been held and the phased in approach was not changed. Second reading for the 2006-2007 Budget is scheduled for November 15, 2005. Ben Manvel reported there had been discussions of this item during the Council retreat held recently and there were questions from various Council Members. Chuck stated that the Pension Valuation meeting the Board will hold in February is a very important meeting for Ben to attend so that he can take information back to Council. 3. MONTHLY INVESTMENT REPORT: Chuck introduced Harold Hall, who has recently accepted the position of Investment Administrator. Harold will be providing our monthly, quarterly, and annual investment reports to the Board. Harold distributed a monthly investment report to the Board for discussion as to content and format. He also presented a report from Morning Star. Chuck stated they printed out the Morning Star Report to see if our investments were on target. The asset allocation policy is still on target. The Board discussed the information that would be helpful in these monthly investment reports and decided they liked the content of the former reports developed by Staff but also liked the information and format of the Morning S tar r eport. C huck a nd H arold w ill d evelop r eports a nd p Ian to p resent t he r evised reports at the December meeting. The question was raised regarding how our investment policy is developed. The Actuary works with the Committee and the City Attorney to determine if or when the investment policy should be a ltered. T he 1 ast p olicy d evelopment c hange o ccurred N ovember 6, 1997 w hen S tate 1 aw regarding equities was changed to allow more discretion. 4. OTHER BUSINESS: A motion was made by Bill Switzer and seconded by Dottie Nazarenus to change the date and location of the December meeting to Bissetti's Italian Restaurant on Thursday, December 15, 2005, beginning at 11:30 am. The motion carried unanimously (5-0) and Susan will post the notice of the change. The next item for the Board to consider was a Domestic Relations Order ("DRO") and Agreement from Mr. Jesser, a plan member, asking the Board to approve the division of his pension benefit. Notice of this meeting had been provided to Mr. Jesser and the Alternate Payee. Greg Tempel has reviewed the DRO and advised that it meets State and Federal law as well as GERP rules; he recommended it be approved. Bill Switzer moved that the Board approve the DRO as written and Michelle Hays -Johnson seconded the motion. The motion carried unanimously (5-0). The next item for the Board to consider was a DRO and Agreement from Mr. Van Ceylon, a plan member, asking the Board to approve the division of his pension benefit. Both Mr. and Mrs. Van Ceylon waived the advanced notification period and asked that this request be considered at today's meeting. Greg Tempel reviewed the DRO and advised that it complies with State and General Employees' Retirement Committee November 9, 2005, Meeting Minutes Page 3 of 2 Federal 1 aws as w ell a s the G ERP r ules; h e r ecommended a pproval. M ichelle H ays-Johnson moved to approve the DRO as written and Bill Switzer seconded the motion. The motion carried unanimously (5-0). ADJOURNMENT: The meeting adjourned at 3:45 p.m. TOPICS FOR NEXT REGULARLY SCHEDULED MEETING The next meeting of the Committee will be held on December 15, 2005, beginning at 11:30 a.m. at Bissetti's Italian Restaurant. The tentative agenda includes: Public Participation & Plan Member Comments Approval of Minutes Plan Philosophy Other Business GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Plan's web page can be found at www.fcgov.com/cityclerk/retirement.php. The Committee's 2004 Annual Report, 2005 Work Plan, and monthly minutes are available at this site. 2005 Meeting Schedule: The r egular m eeting t ime f or t he C ommittee i s a t 1 :15 p.m. o n t he s econd T hursday o f e ach month. The regular location is 215 North Mason Street, meeting room 2A. For 2005, the Committee has scheduled the meetings as shown below: Nevembef Deeembef8 (moved to December 15)