HomeMy WebLinkAboutRetirement Committee - Minutes - 02/22/1990E
• FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE
MEETING MINUTES
FEBRUARY 22, 1990, 1:00 P.M.
MEMBERS PRESENT: MEMBERS ABSENT:
Jerry Brown Mollie Mercer None
Alan Krcmarik Angelina Powell
Dennis Sumner Sue Wilcox, Secretary
Bob Eichem, Treasury Administrator, was present.
Also present for the latter part of the meeting was Don Mazanec,
actuary from Mercer Meidinger Hansen. (NOTE: The name of this
company has since been changed to William M. Mercer, Inc.)
CALL TO ORDER:
Chairperson Dennis Sumner called the meeting to order at 1:00 p.m.
APPROVAL OF MINUTES:
Jerry Brown moved that the minutes of the January 25, 1990 meeting be approved
as written. Angelina Powell seconded the motion. It was noted there were some
errors in the percentages reported in the minutes for cost -of -living
adjustments. The correct figures are those in the draft to be presented to
City Council. With this noted, the minutes were approved.
ITEMS OF NOTE:
• The chairperson said he had received a memo from the Medical Insurance Staff
Committee stating that they would not have any information until May on the
Total Compensation Study. Dennis asked Alan to send Jaime Mares a reminder
that the GERC does wish to have a representative on the committee. Mollie will
also follow up on this at her staff meeting in Employee Development.
It was noted that Don Mazanec would be attending the GERC meeting today.
Dennis noted that he was invited as chairman of the GERC to attend a City
Governance Meeting on March 5. The purpose of the meeting is to obtain
feedback from citizens on various issues related to governance of the City.
GERC members offered comments and asked Dennis to report back on the outcome of
this meeting.
AGENDA REVIEW:
As Don Mazanec was not in attendance at this time and Bob Eichem was available
for his portion of the meeting, it was concluded that the order of business
would be altered.
DISCUSSION TOPICS - NEW OPEN ITEMS
1. QUARTERLY INVESTMENT REPORT FOR FOURTH QUARTER, 1989
MAIN POINTS: Bob Eichem, Treasury Administrator, presented the Quarterly
Investment Report for the Fourth Quarter, 1989. He noted that the rate of
• return for 1989 had been 9.21% ($1,393,463), while comparable return on
Treasury securities was 7.88%. Bob noted that he had implemented some
active strategies which he hoped would increase the rate of return in 1990.
He also noted that he has begun to purchase new types of investments to •
diversify the portfolios of the City.
Members of the Finance Department staff have been working with Bob to
revise the investment policies, which should go to Council soon for
approval.
Bob suggested that it may be appropriate to consider hiring an external
management firm to manage the GER portfolio. By devoting full attention to
the market, a management firm would be able to invest in common stocks and
potentially provide an even better return for the GER funds.
DECISIONS/CONCLUSIONS:
1. The Quarterly Investment Report was approved and accepted as submitted.
2. The GERC will take under consideration Bob's suggestion to hire an
external management firm. He was asked to follow up on this concept
and provide more details.
NEXT STEPS: The concept of using an investment firm to handle GER funds
will be discussed further when Bob Eichem is able to provide more details.
2. PENSION INVESTMENT CLASS
MAIN POINTS: The GERC has expressed interest in having some type of a
pension investment class to enhance committee members' knowledge in this
• important aspect of the committee's work. The scheduling of this class had
been deferred pending the appointment of a Treasury Administrator. Now
that Bob is on board the scheduling of this course was discussed.
DECISIONS/CONCLUSIONS: Bob indicated he would be pleased to provide a
pension investment course for the GERC. A two-hour session was tentatively
scheduled for April, 1990. (NOTE: Due to scheduling conflicts, this date
has since been changed to June 28, 1990.)
NEXT STEPS: Bob will prepare necessary materials for this class.
3. THE CITY'S USE OF ICMA TO MANAGE VARIOUS EMPLOYEE INVESTMENTS
MAIN POINTS: Alan was asked if the City had ever evaluated ICMA's
competitiveness in the services that it currently provides for employee
investments.
DISCUSSION/CONCLUSIONS: Alan noted that a competitive bid had never taken
place. He will be working with Dave Agee, Jim O'Neill, and Employee
Development to draft an RFP (request for proposal) which would enable the
City to look at various competitors who could provide the same services as
ICMA. It was noted that ICMA has experienced various administrative
deficiencies in the recent past. However, Alan noted that the most recent
fund transfers to ICMA were handled very well.
• NEXT STEPS: Alan will follow up with Dave Agee and Jim O'Neill to
determine if some type of competitive bid and evaluation process can be put
together to explore alternatives to ICMA.
• DISCUSSION ITEMS - OPEN ITEMS
1. COUNCIL COVER MEMO CONCERNING PROPOSED CHANGES TO GENERAL EMPLOYEES
RETIREMENT PLAN (AND ACCOMPANYING AGENDA ITEM SUMMARY)
MAIN POINTS: The Committee reviewed a draft memo in detail.
DECISIONS/CONCLUSIONS: A number of changes were proposed.
NEXT STEPS: The revised memo will be submitted to Council as soon as
it is completed and reviewed by the City Attorney's office.
2. DISCUSSION ON RESTATEMENT MATERIALS PREPARED BY DON MAZANEC
MAIN POINTS: The resolution and restatement of the retirement plan were
reviewed page by page.
DECISIONS/CONCLUSIONS: There was extensive discussion of the information
and numerous changes were proposed. The material and suggested changes
will be reviewed by the City Attorney's Office.
NEXT STEPS: Don will make the necessary changes to the resolution and
restatement of the General Employees Retirement Plan. Also he will answer
questions on Section 5, Minimum Period Payment of Article VI and the last
paragraph of Section 2, Article IX. Mary Crumbaker/Smith of the City
• Attorney's Office will be asked to review the document and offer additional
comments. After that the revisions will be submitted to the GERC for
review and then to City Council for consideration.
3. PENSION INVESTMENT SEMINARS/PUBLIC BENEFIT PLANS WORKSHOPS
MAIN POINTS: Continuing discussion on this topic from our last meeting,
Don and Alan presented information on additional courses and workshops
which would be held later this year. Alan noted he still had not received
the particulars of the GFOA Conference. Don distributed information on
several workshops available through the International Foundation of
Benefits in May and June.
DECISIONS/CONCLUSIONS: It was concluded that it would be appropriate for
one or more members of the GERC to participate in this type of training
session. Several members expressed interest in these training
opportunities, but asked for further information before making a decision.
It was concluded that Alan and Dennis would review the materials.
NEXT STEPS: If any decisions were required prior to the next GERC meeting,
Alan and Dennis would be responsible for preparing a recommendation for the
committee.
4. GFOA BOOKLETS ON PENSION -RELATED TOPICS.
• MAIN POINTS: Alan presented several booklets from GFOA which provide
in-depth information on various pension -related topics.
• DECISIONS/CONCLUSIONS: It was noted that it may be worthwhile for
committee members to review these booklets.
NEXT STEPS: These will be routed to the GERC members for their review and
information.
AGENDA AND SCHEDULE FOR NEXT MEETING
The next meeting will be the Investment Class on April 26th from 1-3 p.m. The
purpose of the meeting will be to hold the investment class to be instructed by
Bob Eichem. (NOTE: Due to scheduling conflicts, this meeting date has been
changed. The next meeting for normal GERC business is scheduled for June 21;
Bob Eichem's presentation is scheduled for June 28. If the agenda for the June
21 meeting is light, we will hold both session on June 21.)
ADJOURN
The meeting was adjourned at 3:35 p.m.
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