HomeMy WebLinkAboutRetirement Committee - Minutes - 10/19/2001Admiirative Services
Finance Administration
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
OCTOBER 19, 2001, SPECIAL MEETING MINUTES
Approved, as amended, November 1, 2001
COUNCIL LIAISON: Mayor Ray Martinez
COMMITTEE Terry Van Cleave, 221-6321 Susan Lehman, 221-6813
MEMBERS Michele Hays -Johnson, 416-2158 Dottie Nazarenus, 204-4429
PRESENT: Bill Switzer, 221-6713 Alan Krcmarik, 221-6788
OTHERS Julie Depperman (Finance) Greg Tempel, (City Attorney's Office)
PRESENT: Debbie Weedman (Human Resources)
CALL TO ORDER: Chair Susan Lehman called the meeting to order at 9:14 a.m.
PLAN MEMBER COMMENTS: No comments at this meeting.
1. REVIEW OF THE PLAN RESTATEMENT
Steve Weinstein from Gorsuch Kirgis (Special Legal Counsel to the Committee) provided an
updated Plan Restatement for the Committee to review. The Committee conducted the review
page by page. Most corrections were minor grammatical changes, the addition of punctuation
and checking to make sure that references from one section to another were the appropriate
reference.
The Committee discussed Section 3 of Article VII. According to Weinstein, there is no
requirement that Plan Members take retirement at 70Y2 years of age and there is no penalty for
delayed retirement.
The Committee and staff wanted to clarify the timing of retirement payments. For example, if a
Plan Member were to retire on January 1, the first retirement check would be made near the end
of February. Members that retired according to the Delayed Retirement provisons would follow
this schedule.
The Committee also reviewed the timing of single sum payments. The Plan allows 90 days from
the termination date. The clock starts when the Member makes the election for a single sum
and returns the required form provided by staff. The single sum is in lieu of the monthly benefit
option.
The Committee then discussed Section 4 of Article VIII. Under this section, the Plan has the
option to make single sum payments to terminated Vested Members whose single sum benefit
payment is under $5,000. The question is whether such Members would be covered by the new
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General Emplovees' Retirement Committee
Octoi 19, 2001, Meeting Minutes
Page 2 of 2
Plan or the Plan as it was when they terminated. The Committee decided to check with legal
counsel on this question.
At 10:14 a.m., Michele Hayes -Johnson left the meeting. Five Committee members were
present, maintaining a quorum.
The Committee reviewed the resolution prepared by Greg Tempel to adopt the Plan as restated.
Alan moved to approve the resolution. Susan seconded motion. The Committee. voted to
approve the motion 5-0.
The Committee discussed whether an employee whose employment changed from Classified to
Unclassified could remain in the Plan. The Committee believes that the proper interpretation of
the Plan would allow an employee in this situation to remain in the Plan.
The Committee considered a question from Vincent Pascale regarding what happens when a
disabled member reaches age 65. To calculate the benefit, staff uses final pay, not final
average pay. The Committee discussed this question and decided that additional research
should be done to see if this is a federal regulation. The Committee also will check to see how
many retirees and current Members of the Plan have disabled status.
The Committee made a conference call to Tom Rodgers, an associate of Weinstein. The
Committee asked for advice on the $5,000 limit on the terminated Vested Members. In effect,
would it be appropriate not to allow terminated Vested Members to be covered by the Plan in
place when they terminated. Rodgers indicated if the Member was not in covered employment
their would be no problem. The Committee clarified that it needed to know if this provision could
be retroactively enforced. Legal counsel advised that the Plan could apply the provision to
Members that have left the Plan under earlier versions.
2. ACTUARY PERFORMANCE
The Committee reviewed the letter to the Actuary that Michele and Susan had drafted. The
Committee agreed that the letter needed to be sent to document Committee's concerns about
performance.
Greg left the meeting at 11:06 a.m. Debbie Weedman left the meeting at 11:12 a.m.
The Committee reviewed the letter. Sections of the letter were re -ordered and further clarified.
Next Steps: Susan will revise the letter as discussed by the Committee and send it to the
Actuary. The Committee's objective is to continue the actuarial services agreement with
Milliman and have them improve their services to meet the contract and scope of services. The
Committee and staff will continue to monitor the Actuary's performance.
Adjournment: The Committee adjourned at 11:25 p.m.
Filename: GminOct192001