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HomeMy WebLinkAboutRetirement Committee - Minutes - 10/31/2005General Employees' Retirement Plan GENERAL EMPLOYEES' RETIREMENT COMMITTEE OCTOBER 13, 2005, MEETING MINUTES APPROVED AS CORRECTED ON JANUARY 12, 2006 COUNCIL LIAISON: Councilman Ben Manvel UP COMMITTEE Susan Lehman, Chair, 221-6V Charles Seest, 221-6788 MEMBERS Jim O'Neill, Vice Chair, 221-6779 Bill Switzer, 221-6713 PRESENT: Michele Hays -Johnson, 416-2158 Dottie Nazarenus, 204-4429 MEMBERS ABSENT: OTHERS Ben Manvel (City Council) PRESENT: Ann Wardle (Finance) Debbie Weedman (Human Resources) Pat Kahle (Milliman) CALL TO ORDER: Susan Lehman called the meeting to order at 1:20 pm. 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. There was no public participation or comment made at this meeting. APPROVAL OF MINUTES: Minutes of the July 28 and September 1 meetings were distributed; the July minutes had been tabled at the last meeting. The July 28 minutes were again tabled until the October meeting so that Greg Tempel has an opportunity to review them. The September 1 minutes were reviewed; and item number 3, Monthly Investment Report, was changed to read: "No monthly investment report was available." Jim O'Neill made a motion to approve the minutes of the September 1, 2005, meeting as amended; and Michele Hays -Johnson seconded the motion. The Committee approved the minutes unanimously (6-0). DISCUSSION TOPICS: 1. PLAN PHILOSOPHY: Charles Seest reported that he is waiting for adoption of the budget in which funding levels for The Plan are increased by $200,000 in 2006 through 2008 and $100,000 in 2009. Charles does, however, expect it to be adopted. 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 October 13, 2005, Meeting Minutes Page 2 of 3 2. MONTHLY INVESTMENT REPORT: Charles distributed an Investment in Mutual Funds Summary of Accounting Activity handout. The net asset value of mutual funds as of September 30, 2005, was $24,705,491.60, and the net asset value was $23,101,809.56 on December 31, 2004; the change in net asset value was an increase of $1,603,682.04 or approximately 6%. A list of shares held and share prices was also provided. Approximately $67,000 in dividends has been received in 2005. Charles noted that the amount given under shares held as of September 30, price per share, and net asset value given for Brandywine Fund was italicized because it was not September 30 detail. Charles gave a second handout on the Schedule of Changes in Net Assets Held in Trust as of September 30, 2005, as well. Charles reviewed the variances between actual and budget of operating revenues and expenses. Contributions and earnings are in line with the budget; benefit payments, however, were high due to a number of lump -sum distributions. Charles will go to Council to obtain approval for additional appropriations. Charles is watching for the Reduction in Force (R.I.F.) to occur to determine just how much cash there is in the system and how much will be needed, but, he needs the legal ability to spend the funds. At the beginning of the year, they thought $2 million would cover it; but $400,000 to $500,000 more may be needed. Debbie Weedman said she thinks there are about four Members who are in the Plan that may be part of the R.I.F. Charles said over $500,000 in payments went out last month alone; $100,000 to $120,000 goes out in a typical month. Pat Kahle stated they will need to closely watch assumptions; and look at who was part of the R.I.F. The Plan will likely see some gains, which is typically what happens. Pat said they use the 1983 Group Annuity Mortality (GAM) table and are funding as if Members are expected to continue to work -- they may be cashing out with less benefits. 3. CHANGING MEETING To 2 ND T HURSDAY OF M ONTH: Susan Lehman said that her office provides support to another board that meets until 1:30 on the first Thursday of the month and Michele only works until 3:00. Therefore, she asked if the G.E.R.C. monthly meetings could be moved to the second Thursday of the month at 1:15. Charles said it would also work better for him. Bill Switzer motioned that the meetings be moved to the second Thursday of the month at 1:15 p.m., and Jim O'Neill seconded the motion. Ann will post the meeting changes to November 10 and December 8. 4. OTHER BUSINESS: There was no other business. ADJOURNMENT: The Committee adjourned at 2:20 p.m. TOPICS FOR NEXT REGULAR MEETING The next regular meeting of the Committee will be held on November 9, 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 General Employees' Retirement Committee October 13, 2005, Meeting Minutes Page 3 of 3 Update on Plan Funding Status Monthly Investment Report Other Business GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Plan's web page can be found at www.fcjzov.com/cityclerk/retirement.i)hD. 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 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: FebraaFy 3 A4ay August ^ (te be held july 28) November 3 (changed to 101h) N4aFeh 3 Ame 2 September 1 December 1 (changed to 81h)