HomeMy WebLinkAboutRetirement Committee - Minutes - 03/01/2001City of Fort Collins
Retirement Plan
FORT COLLINS GENERAL EMPLOYEES' RETIREMENT COMMITTEE
MARCH 1, 2001, MEETING MINUTES
Approved on April 5, 2001
COUNCIL LIAISON: Mayor Ray Martinez
COMMITTEE Susan Lehman, 221-6813 ABSENT: Terry Van Cleave, 221-6321
MEMBERS Michele Hays -Johnson, 416-2158 Bill Switzer, 221-6713
PRESENT: Dottie Nazarenus, 204-4429
Alan Krcmarik, 221-6788
OTHERS Julie Depperman (Finance) - Sue Wilcox (Finance)
PRESENT: Vincent Pascale (Human Resources) Greg Tempel (Legal)
Deb Weedman (Human Resources) Nancy Wagner, Milliman & Robertson
(Plan actuary)
CALL TO ORDER: Susan Lehman, Chair, called the meeting to order at 1:22 PM.
ITEMS OF NOTE: Bill Switzer and Terry Van Cleave advised Susan they would not be present.
PLAN MEMBER COMMENTS: None.
APPROVAL OF MINUTES: Alan Krcmarik distributed the draft minutes of the February 1, 2001,
meeting. Dottie Nazarenus moved to approve the minutes with one amendment. Michele Hays -
Johnson seconded the motion. The Committee approved the motion unanimously (4-0).
DISCUSSION TOPICS:
1. RETIREMENT PHILOSOPHY DISCUSSION
MAIN POINTS: This item provides an opportunity for discussion of retirement philosophy issues.
CONCLUSION AND NEXT STEPS: While there were no immediate concerns to be discussed at
this meeting, the Committee agreed to retain this topic for discussion at future meetings.
2. 2002-2003 BUDGET REQUESTS FROM BOARDS AND COMMISSIONS
MAIN POINTS: Alan distributed a memo from the City Manager asking for boards and
commissions to submit funding requests for the next two-year budget cycle. The Committee
discussed four expenses that may occur in conjunction with planned work items.
♦ Restatement of the Plan document, which will require contracting with a person or firm to
review and rewrite the Plan.
300 LaPorte Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782
General Errrioyees' Retirement Committee
Arch 1, 2001, Meeting Minutes
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♦ Training for Committee members, which could involve both in -state and out-of-state
seminars or special training sessions held in Fort Collins.
♦ Revising and printing the Retirement Plan Summary booklet to bring it up to date.
♦ Possible additional contributions to the Plan which may be necessary because it is now
closed to new members. As more Plan members retire, fund withdrawals will increase and
contributions to the Plan will decline over time.
CONCLUSION AND NEXT STEPS: Greg Tempel advised the Committee should begin the
restatement of the Plan soon. Members and staff will bring possible training topics and seminars to
the April meeting. Printing the booklet will probably be a relatively minor expense. Having it
available on-line would reduce the number of printed copies. The first three items would be proper
expenses of the Plan. Nancy Wagner will have cost projections for the April meeting to illustrate
the possible impact of fund withdrawals and smaller contributions.
3. REVIEW DRAFTS OF SELECTED PORTIONS OF VALUATION REPORT
MAIN POINTS: Nancy indicated she had received all the information she needed for the valuation
report but did not have drafts for review. She stated she would have them for the April meeting.
CONCLUSION AND NEXT STEPS: Nancy is to e-mail drafts of the report summary and the more
important tables to the Committee and staff members about a week before the April meeting.
4. REVIEW DRAFTS OF PERSONAL RETIREMENT PLANNING STATEMENT
MAIN POINTS: Nancy provided a draft of a Personal Retirement Planning Statement that included
the changes the Committee suggested at the February meeting. Updated information from the
ICMA Retirement Corporation has been included. The Committee made several comments and
suggestions for Nancy to incorporate into the final version.
CONCLUSION AND NEXT STEPS: Nancy will make the changes, print and collate the
statements. Milliman will ship them to the Finance Department by March 16. Finance plans to
distribute them to Plan members with the March 24 paychecks.
5. DISCUSSION OF ALTERNATIVE METHODS OF CALCULATING RETIREMENT BENEFITS
MAIN POINTS: This item was intended for discussion of alternative methods of calculating the
retirement benefit for members who may change between full-time and part-time positions.
CONCLUSION AND NEXT STEPS: The Committee members present agreed to defer this item so
all the Committee members could be present for the discussions.
6. MONTHLY INVESTMENT UPDATE
MAIN POINTS: Julie Depperman noted that the stock market had been trending downward during
February. The NASDAQ was down 13%. The Standard & Poor's Index was down about 6
percent. In contrast, the Plan's investment portfolio declined only 0.38 percent, with a 5.66% drop
in mutual funds offset by a 6.58% gain in the fixed income portion. Some of the value funds are
doing very well. Several the mutual funds are outperforming their benchmarks.
Gel Employees' Retirement Committee
March 1, 2001, Meeting Minutes
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CONCLUSION AND NEXT STEPS: Finance staff will continue to monitor stock market activity, to
shop aggressively for value, and to invest in the fixed income market.
7. OTHER BUSINESS
Susan and Alan each received a survey from William M. Mercer, Inc. asking for detailed information
about the Plan. Both will complete the forms by the March 15, 2001, deadline.
Deb Weedman received a copy of a Domestic Relations Order (DRO) for a Plan member. Greg
reviewed the initial draft DRO and the Court subsequently approved it. According to the Plan, the
Committee must approve the DRO, which divides the retirement benefit between the member and
former spouse. In the past, the Plan actuary has reviewed the DRO and the benefit calculations.
The Committee asked Milliman to review this DRO and calculate the spouse's benefit before the
April meeting.
8. SCHEDULE FOR NEXT REGULAR MEETING
The next regular meeting will be April 5, 2001, at 1:15 PM in the Council Information Center of City
Hall. The tentative agenda includes:
1. Citizen Participation and Plan Member Comments
2. Consideration of the March 1, 2001, Minutes
3. Discussion of Retirement Philosophy
4. Consider Approving Domestic Relations Order
5. Report on Personal Retirement Planning Statements
6. Review Drafts of Portions of Valuation Report
7. Discussion of Alternative Methods of Calculating Retirement Benefit
(Full-time — Part-time equity issue)
8. Monthly Investment Update
9. Other Business
ADJOURNMENT: Susan adjourned the meeting at 2:25 PM.
GERC AND GERP WEB PAGE ADDRESS:
http://www.ci.fort-collins.co.us/CITY HALL/BOARDS COMMISSIONS/RETIREMENT/index.htm
FUTURE MEETING SCHEDULE:
The Committee regularly meets at 1:15 p.m. on the first Thursday of each month in the Council
Information Center, City Hall West. The next scheduled meeting will be Thursday, April 5, 2001, at
1:15 PM. The Committee has scheduled the following meetings for 2001:
THURSDAY, JULY 12, 2001
THURSDAY, AUGUST 2, 2001
THURSDAY, SEPTEMBER 6, 2001
THURSDAY, APRIL 5, 2001 THURSDAY, OCTOBER 4, 2001
THURSDAY, MAY 3, 2001 THURSDAY, NOVEMBER 1, 2001
THURSDAY, JUNE 7, 2001 THURSDAY, DECEMBER 6, 2001