HomeMy WebLinkAboutRetirement Committee - Minutes - 11/01/2001City of Fort Collins
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GENERAL EMPLOYEES' RETIREMENT COMMITTEE
NOVEMBER 1, 2001, MEETING MINUTES
Approved December 13, 2001
COUNCIL LIAISON: Mayor Ray Martinez
COMMITTEE Susan Lehman, 221-6813 Michele Hays -Johnson, 416-2158
MEMBERS Terry Van Cleave, 221-6321 Dottie Nazarenus, 204-4429
PRESENT: Bill Switzer, 221-6713 Alan Krcmarik, 221-6788
OTHERS Julie Depperman (Finance) Greg Tempel, (City Attorney's Office)
PRESENT: Nancy Wagner (Actuary) Debbie Weedman (Human Resources)
Vincent Pascale (Human Resources)
CALL TO ORDER: Chair Susan Lehman called the meeting to order at 1:21 p.m. Five
members of the Committee were present constituting a quorum. [Dottie arrived at 1:24 p.m.]
PLAN MEMBER COMMENTS: No comments at this meeting.
APPROVAL OF MINUTES: Alan Krcmarik handed out the minutes for the October 11, meeting.
Bill Switzer moved approval of the minutes and Terry Van Cleave seconded the motion. The
Committee approved the minutes unanimously (5-0).
Alan handed out the minutes for the special meeting held October 19, 2001. The Committee
reviewed the last paragraph of the discussion item relating to the Review of the Plan
Restatement. There was a minor change to the minutes. Michele Hays -Johnson moved
approval of the minutes, as amended. Terry seconded the motion. The Committee approved
the minutes unanimously (6-0).
DISCUSSION TOPICS
1. REVIEW OF THE PLAN RESTATEMENT
The Committee made a final review of the Restated Plan. In total, six minor amendments were
made. Susan volunteered to add more descriptive footers to the document.
Greg Tempel agreed to make the minor changes to the Plan document and will forward the Plan
to Susan who will add the footers which will be Article numbers at the bottom of each page.
Alan will draft the agenda item summary and Greg had prepared the resolution for Council to
consider. The item will be on the Council agenda for November 20. Susan moved to
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215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782
General Em yees' Retirement Committee
• NoAVer 1, 2001, Meeting Minutes
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recommend the Restated Plan to the Council for adoption. Alan seconded the motion. The
Committee approved the motion unanimously (6-0).
2. CHANGING THE METHOD OF BENEFIT CALCULATION
The Committee has been working on an amendment to the Plan to address equity issues for
part time employees. Greg has prepared the wording for the amendment and it has been
reviewed by legal counsel, Steve Weinstein. The Committee discussed the process of informing
the Plan Members of the change. Staff will prepare a short memo explaining how the calculation
has changed. The Finance Department will have to review the Members' employment files to
develop an accurate data base of service. Nancy advised that the financial impact of the
proposed change would not be material.
The Committee identified the following steps for the amendment:
Greg to supply the Plan change wording in December.
Finance Staff will begin reviewing files for service history.
The Committee will discuss the topic in January.
The Committee plans to do the outreach to Members in 2002, as soon as possible.
The final letter to Plan Members should be in May or June.
The Committee will present the item to Council by July.
Michele asked how much time the service history will take. Finance staff estimated it could be
completed in the April - May time frame.
3. RETIREMENT PHILOSOPHY
Due to the recent events of the stock market, the funding status of the Plan is not able to
enhance retirement benefits. Nancy Wagner noted that the Plan is better off due to the
conversions that occurred in 1998 and 1999.
4. MONTHLY INVESTMENT UPDATE
The end of the month was the day before the meeting. There had not been enough time to
compile the monthly review.
5. 2002 WORK PLAN
Susan handed out a draft work plan for 2002. The Committee reviewed the work plan task by
task. Alan moved to approve the work plan based on the Committee's discussion. Michele
seconded the motion. The Committee approved the motion unanimously (6-0).
Susan will make the revisions and submit them to the City Clerk.
Other Business:
Purchase of Service Credits: Debbie Weedman brought up a provision of the Economic Growth
and Tax Relief Reconciliation Act that allows the purchase of service credits in a defined benefit
plan. Nancy verified that this is part of the Act if the Member has 20 years of service. However,
Nancy noted that this would have adverse effects on the financial status of the Plan.
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Early Retirement: The Committee discussed how an early retirement program may save
disability costs. Under the previous early retirement plan offered by the City, departments had
to pay (and they continue to pay) for the costs of the early retirement.
Actuary Performance: Nancy provided a response to the Committee's letter regarding
performance concerns. Nancy suggestions some of the provisions of the service agreement are
ambiguous. Nancy has agreed to write off billing charges when staff has noted concerns.
(Terry left the meeting at 2:32)
The Committee continued to discuss the response from the Actuary. The Committee was to be
sure that representatives of the Actuary are knowledgeable about the Plan and the laws that
apply to it. The Committee will continue to discuss this item.
Adjournment: The Committee adjourned at 2:50 p.m.
SCHEDULE FOR NEXT REGULAR MEETING
The next regular meeting of the Committee will be on December 6, 2001, at 1:15 p.m. in the
Council Information Center of City Hall. The tentative agenda includes:
Plan Member Comments
Approval of the November meeting minutes
Retirement Philosophy
Change in Calculating Retirement Benefits
Monthly Investment Update
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The web page is under
construction.
Future 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 the Council Information Center at City Hall. For 2001 the Committee has
scheduled the meetings as shown below:
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Thursday,December .
For 2002 the Committee has scheduled the meetings as shown below:
January 10 April 4 July 11 October 3
February 7 May 2 August 1 November 7
March 7 June 6 September 5 December 5
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