The URL can be used to link to this page

Home My WebLink AboutRetirement Committee - Minutes - 07/10/1997Gene*Employees Retirement Plan • City of Fort Collins FORT COLLINS GENERAL EMPLOYEES RETIREMENT COAUMTI'EE DULY 10,1997 MEETING MINUTES COUNCIL LIAISON: Mayor Ann Azari CONEM TEE MEMBERS PRESENT: Vice Chairperson Tim Hume, 221-6776 Dave Agee, 221-6770 Alan Krcmarik, Member/Staff Support Patti Teraoka, 221-6715 Kevin Westhuis, 224-6156 OTHERS PRESENT: Sue Wilcox (Staff Support - Secretary) Russ Proctor - Watson Wyatt Worldwide, the City's actuarial firm Laurie Harvey (Staff Support - Human Resources) Bob Eichem (Staff Support - Investments) CALL TO ORDER: Vice Chairperson Tim Hume called the regular meeting to order at 1:25 p.m. in the Council Information Center of City Hall West.. ITEMS OF NOTE: 1) Greg Tempel is out of the office and unable to attend the meeting .... 2) Patti Teraoka, a financial technician for 14 years at Light and Power, was welcomed as the new GERC member. She replaces outgoing member Jerry Brown, who will be recognized for his eight years of service by City Council on July 15th.... 3) Dave Agee noted that the COLA (cost of living adjustment) the GERC had requested for current retirees had not been included in the City Manager' s 1998 recommended budget, the Manager stating he felt it should be funded by the Plan. The members were very disappointed and wondered if staff understood the impact of a COLA for current retirees on the total compensation plan of current employees. It might be beneficial to educate management, staff, current retirees, and Council members about the difference between a COLA for current retirees and one for future retirees when this topic comes up again next year. Members also suggested that COLAs be included in the design of the GERC philosophy. APPROVAL OF MINUTES: There were several clarifications recommended for the wording of item #2 "Community Service Officers Request To `Opt Out' Of GERP" and item #3 300 LaPorte Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 "Disabled GERP Member Requests Retirement Benefits Before Age 65" because these items documented GER Committee decisions and may be used for reference in the future. Kevin Westhuis moved that the June 5, 1997 minutes be approved with the suggested changes and Alan seconded the motion. The Committee unanimously (5-0) approved the minutes as amended. Laurie Harvey noted that Greg Tempel had been advised that a decision on the ability of the Community Service Officers to opt out of Social Security might be received from the State by the end of August. DISCUSSION TOPICS: 1. GER PLAN MEMBER(S) COMMENTS/CITIZEN PARTICIPATION: There were no member or citizen comments. 2. VIEWING OF "NIGHTLINE" VIDEO MAIN POINTS: Dave Agee showed a videotape of the March 7, 1997 "Nghtline" program in which Robert Krulwich addressed the issues involved in the ongoing DB-DC (Defined Benefit - Defined Contribution) debate. CONCLUSIONS/NEXT STEPS: The members agreed that many important issues were raised, but felt the program also sensationalized the conflicts, rather than presenting an objective review. Russ Proctor questioned some of the statistics used, but all felt that the tape presented some useful information. 3. DB/DC STUDY UPDATE - DETAILS OF DESIGN OF RETIREMENT PHILOSOPHY MAIN POINTS: Russ Proctor lead a discussion of the pros and cons (for both the City and for employee -members) of DC and DB plans. Some of the attributes applied to both the City and to members. Most of the characteristics had both a good attribute and a detrimental side, depending on the individual circumstances of the member. Discussion lead to various alternatives: not changing the Plan; conducting focus groups for additional direction now that there is more flexibility in the GERP and other City benefits; conducting educational programs in the various benefits that make up retirement income; pursuing additional enhancements to the GER Plan; and pursuing a choice in DB-DC plans. CONCLUSIONS/NEXT STEPS: Because the Committee wishes to coordinate its actions with the new two-year budget cycle, the members agreed to hold a second meeting on July 22nd at noon in the Council Information Center (CIC). In the meantime the members will review the elements discussed above and propose some action plan options. Russ will ask that Jeff Kraft, a communication specialist with Watson Wyatt, bring some alternatives to the meeting on the 22nd. 2 GERC Nfrnutes - July 10, 1997 4. INVESTMENT POLICIES REVIEW MAIN POINTS: Alan Krcmarik has received comments on the draft of the proposed GERP Investment Policies from Greg Tempel, Tim Hume, and Bob Eichem. The other members and staff had no comments, but Dave Agee will submit some philosophical issues to Alan. CONCLUSIONS/NEXT STEPS: Alan expects to have a near -final draft of the Investment Policies for the next meeting. Alan left at 3:28 pm to attend another meeting. 5. UPDATE ON GERC WEB PAGE MAIN POINTS: Tim Hume reported that the May minutes were on the Web page and he will update it with the June minutes. He will also complete a required update of the copyright text and enter information on the new GERC member, etc., but he could use more background information. Adding the 1996 year-end investment report, educational material, and a retirement planning worksheet were suggested to make the site more useful. The address of the Retirement Committee webpage is: www.ci.fort-cofins.co.us/CITY HAiUBOARDS COMMISSIONS/RET REMENTrndex.htm CONCLUSIONS/NEXT STEPS: Bob Eichem will work on converting the graphs and tabs in the quarterly investment report to charts, which can be more easily transferred to the web site. 6. ELECTION OF INTERIM GERC OFFICERS MAIN POINTS: City boards and commission normally elect their officers in September. Interim GERC officers will hold office until then. Although he is the most experienced Committee member, Tim Hume stated that because of the demands of his position in Purchasing, he did not wish to be the chairperson. Tim then nominated Kevin Westhuis for chairperson and Patti Teraoka seconded the motion. The vote was 4-0 (Alan having left the meeting) in favor of Kevin Westhuis service as chairperson. After discussion, Kevin nominated Dave Agee to be vice chairperson and Patti seconded the motion. The vote was 4-0 in favor of Dave Agee serving as vice chairperson. CONCLUSIONSINEXT STEPS: Kevin Westhuis and Dave Agee will serve (respectively) as chairperson and vice chairperson of the GERC until September. GERC Minutes - July 10, 1997 AGENDA & SCHEDULE FOR NEXT TWO A special meeting will be held Tuesday, July 22nd at 12 noon in the Council Information Center (CIC) of City Hall West. The agenda will be: 1. How to Approach Providing Education and Receiving Input from Members 2. Recognition of Former and New GERC Members The next regular meeting will be Thursday, August 7th at 1:15 pm in the Council Information Center (CIC) of City Hall West. The agenda will include: 1. Plan Member Comments/Citizen Participation 2. Investment Report for 2nd Quarter, 1997. 3. Future Actions in the DB-DC Review Process 4. Web Page Update 5. Other Business ADJOURNMENT: The meeting was adjourned at 3:50 p.m. FUTURE MEETING SCHEDULE: The General Employees Retirement Committee normally meets at 1:15 p.m. on the 1st Thursday of each month in the Council Information Center, City Hall West. Special Meeting: TUESDAY, JULY 22,1997 AT NOON, CIC, CITY HALL WEST THURSDAY, AUGUST 7, 1997 THURSDAY, SEPTEMBER 4, 1997 THURSDAY, OCTOBER 2, 1997 4 THURSDAY, NOVEMBER 6, 1997 THURSDAY, DECEMBER, 4, 1997