HomeMy WebLinkAboutRetirement Committee - Minutes - 02/16/2006City of Fort Collins
General Employees' Retirement Plan
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
February 16, 2006, Meeting Minutes
APPROVED ON MARCH 9, 2006
COUNCIL LIAISON: Councilman Ben Manvel jvi�+i`G� I
COMMITTEE MEMBERS PRESENT: Susan Lehman, Chair, 221-6813 - y L'
Jim O'Neill, Vice Chair, 221-677 l N
Michele Hays -Johnson, 416-2158
Charles Seest, 221-6788
Bill Switzer, 221-6713
COMMITTEE MEMBERS ABSENT: Dottie Nazarenus, 204-4429
OTHERS PRESENT: Greg Tempel (City Attorneys Office)
Harold Hall (Finance)
Debbie Weedman & Amy Sharkey (Human Resources)
Pat Kahle (Actuary, Milliman), via speaker phone
CALL TO ORDER:
Susan Lehman called meeting to order at 1:30 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. There
were no comments received.
APPROVAL OF MEETING MINUTES:
Susan distributed the draft January 12 and January 26, 2006 minutes for review. Jim
O'Neill moved to adopt both sets of minutes as written and Bill Switzer seconded the
motion. The motion carried unanimously 5 to 0.
2005 ANNUAL REPORT
Susan distributed copies of the 2005 Annual Report, dated February 16, 2006 and
approved on January 26, 2006, to the members.
STANDING RULES:
Susan distributed the updated Standing Rules for the Committee's review. Jim moved to
adopt the 2006 Standing Rules as updated; Bill seconded the motion. The motion carried
unanimously 5 to 0.
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
February 16, 2006, Meeting Minutes
Page 2
ELECTION OF OFFICERS:
Susan reported she is now term -limited, in that she will not be able to continue on the
GERC after December 31, 2006; therefore, she stated she would like to nominate Jim
O'Neill as President and Bill Switzer seconded the nomination. The motion carried
unanimously, 5 — 0. Jim nominated Bill as Vice -Chair and Susan seconded the
nomination; the motion carried unanimously, 5-0. Susan will advise the Clerk's Office
regarding the election of officers.
OTHER BUSINESS:
COMMUNITY SERVICE OFFICERS — PENSION ANALYSIS
Chuck distributed information regarding the pension analysis done for the Community
Service Officers (CSO) and a draft resolution adopting the fourth amendment to the
GERP.
BACKGROUND:
The Collective Bargaining Agreement with certain police services employees (the
"Bargaining Unit") provides that these employees be participants in a 401 pension plan
administered by ICMA-RC and the City, and those employees will each contribute 8% of
base salary to such plan commencing with the first pay period in 2006. However, three
members of the Bargaining Unit, Community Service Officers, are currently also
participants in the GERP. Maintaining these three members of the Bargaining Unit in the
GERP is not required by the Collective Bargaining Agreement and would provide them
with the windfall of a 4.5% of base salary to City pension contribution in excess of what
other Bargaining Unit members are receiving.
Therefore the resolution to amend the GERP has been drafted because it is equitable to
remove the Bargaining Unit employees from future participation in the GERP, while
preserving their vested accrued benefits in GERP.
DISCUSSION:
Chuck distributed the proposed amendment to the GERP and told the Committee they
would need to take a stand on the resolution of either in favor or against the amendment.
Chuck further explained the situation:
o There are eight (8) total officers affected, with three (3) being current members of
the GERP.
o In 2006, for five (5) officers, their Total Employer Contribution is 18.5% each;
but, for three (3) community service officers still in the GERP, their Total
Employer Contribution is 23.0%. (In 2005, the Total Employer Contribution for
all eight (8) employees was 15.0 %.)
o The current City contributions for CSO Retirement benefits are: 7.65% FICA
contribution, 4.5% GERP (3 employees), and 8.0% 401 Money Purchase Plan
(0.50% increase in 2006); and, a 3.0% match in 457 Deferred Compensation is
new in 2006.
General Employees' Retirement Committee
February 16, 2006, Meeting Minutes
Page 3
o The draft Resolution states CSO's would be treated as vested deferred members,
which is how anyone currently vested in the GERP would be categorized if they
would leave the employment of the City.
o A second option, that was not included in the draft Resolution, is that the CSO's
could also take a lump sum distribution to their 401 Money Purchase Plan.
Debbie stated that since 2000 some employees who changed positions within police
services were allowed to roll their GERP into the 401 Money Purchase Plan.
The Committee discussed the draft Resolution and Pat confirmed that neither of the two
options would be detrimental to the Plan. The Committee felt that the CSO's should be
given both options in the Resolution and not just the option as vested accrued benefit.
Jim moved that the Committee would support the Resolution provided both options were
included. Bill seconded the motion and the motion carried unanimously, 5 — 0.
BOARDS AND COMMISSIONS TRAINING CLASSES:
Greg reminded the Committee that the Boards and Commissions training has been
scheduled for February 22 from 4:30 to 7:30 p.m. and for March 1 from 1:00 to 4:00 p.m.
Members must give Karla Smith a call to register and RSVP's are due by February 17.
Greg recommends this training for members to stay abreast of the current rules and
regulations.
MONTHLY INVESTMENT REPORT:
Harold distributed the monthly investment report, as of January 31, 2006, and our Total
Portfolio's yield in January was 4.86%. For future reports the Benchmark column will be
weighted so that the Plan Portfolio column can be more accurately compared to the
benchmarks.
ADJOURNMENT:
Jim moved that the meeting be adjourned and Bill seconded the motion. Motion passed
unanimously, 5-0, and the meeting adjourned at 3:20 p.m.
TOPICS FOR NEXT REGULARLY SCHEDULED MEETING:
The next meeting of the Committee will be held on March 9, 2006, beginning at 1:15
p.m. at 215 N. Mason Street, Conference Room 2A on the second floor. The tentative
agenda includes:
Public Participation & Plan Member Comments
Approval of Minutes
Review Actuarial Assumptions
Plan Philosophy
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The Plan's web page can be
found at www.fcgov.com/cityclerk/retirement.i)hn. The Committee's 2004 Annual
General Employees' Retirement Committee
February 16, 2006, Meeting Minutes
Page 4
Report, 2005 Work Plan, and monthly minutes are available at this site.
2006 MEETING SCHEDULE:
The regular meeting time for the Committee is at 1:15 p.m. on the second Thursday of
each month. The regular location is 215 North Mason Street, meeting room 2A. For
2006, the Committee has scheduled the meetings as shown below:
jantiffy 12
March 9
April13
May 11
June 8
July 13
August 10
September 14
October 12
November
December 14