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HomeMy WebLinkAboutRetirement Committee - Minutes - 05/10/1990i a FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE MEETING MINUTES MAY 10, 1990, 8:30 a.m. MEMBERS PRESENT: MEMBERS ABSENT: Jerry Brown Mollie Mercer None Alan Krcmarik Angelina Powell Dennis Sumner Sue Wilcox, Secretary Jaime Mares, Director of Employee Development, was also present. CALL TO ORDER Chairperson Dennis Sumner called the meeting to order at 8:35 a.m. APPROVAL OF MINUTES FROM PREVIOUS MEETING. Several corrections were noted in the minutes of the meeting on February 22, 1990. Alan Krcmarik then made a motion to approve the minutes as corrected. Angelina Powell seconded the motion and the motion passed unanimously. ITEMS OF NOTE The members discussed Council's request that the minutes of each meeting be attached to the agenda for the current meeting. Since the GERC meets quarterly or at irregular intervals, it was suggested that our meeting minutes be sent out in a timely manner following each meeting, with the next meeting's agenda as the last item in the minutes. In relation to creating an RFP for hiring an external management firm, Alan noted a legal concern expressed by the City Attorney. The Charter states that only the Financial Director can make investment decisions. Alan will continue to review options regarding this matter with legal staff. REVIEW OF AGENDA (DISCUSSION TOPICS) Jaime Mares wished to present a GERC-related item before leaving for another meeting, so the agenda was altered to allow this. Also, discussion of the auditor's report on the GER Fund was added to the agenda. DISCUSSION TOPICS - OPEN ITEMS 1. PENDING PROPOSED CHANGES FOR CITY COUNCIL CONSIDERATION MAIN POINTS: The cost -of -living adjustment originally proposed would have been deducted from the extra monthly benefits received by a group of employees who were granted special incentives (paid by individual departments) to retire early. Information provided by Don Botteron, Light and Power, who was a GERC member at that time, explained that early retirees received $X from the General Employees Retirement Fund, $Y monthly benefit paid by the individual departments, and $Z as a bonus or severance pay, with no qualification on how long the monthly benefit would continue. This being the case, the consensus of opinion was that a cost -of -living adjustment in the GER Fund benefit should be applied across the board, with no distinction made between regular employees and this group of early retirees. Alan reviewed the method of calculation of that early retirement benefit. DECISIONS/CONCLUSIONS: After discussion, Angelina Powell moved that the GERC proceed with the cost -of -living adjustment for all retired employees, irrespective of their early retirement status. Jerry Brown seconded the motion and it passed unanimously. It was the consensus of the members that any changes in the early retirement benefits paid by the individual departments should be handled by those departments, if they choose to. NEXT STEPS: Alan will provide information to Chuck Mabry, GERC/Council liaison, and discuss the Committee's progress. He will draft a preliminary memo for the June 5th Council meeting outlining the changes the GERC is proposing and prepare a resolution to change the plan. It may be necessary also to prepare an appropriation for the additional money needed for the adjustment. Alan will also discuss the method of calculation for the early retirement benefit with Steve Burkett. 2. COUNCIL GOVERNANCE COMMITTEE MAIN POINTS: On May 14th there will be a Town Meeting to gather comments on the Governance issues. Information is being distributed City-wide and several items may be on the ballot in November. DECISIONS/CONCLUSIONS: The members thanked Dennis for the update. NEXT STEPS: None required. DISCUSSION TOPICS - NEW ITEMS JOHN LAMPREY REQUEST MAIN POINTS: Jaime Mares of Employee Development presented a request from John Lamprey, former meter reader with Light and Power. John was injured on the job, was then on injury leave for 6 months (maximum allowed), was subsequently unable to return to that job and no other suitable position with the City was found for him. He was terminated on February 1, 1989. He applied for long-term disability from Workers Compensation, which was granted effective April 15, 1989, leaving a lapse of 75 days between his termination and the granting of the disability. John asked that the GERC recognize those days as contributing toward his vesting for retirement benefits. Jaime offered John long-term disability benefits if Workers Comp. did not grant his request. Members raised the following questions: 1. What are the legal ramifications if they grant his request? Would it set a precedent for other such requests? 2. Would granting his request have an affect on his Workers Comp. benefits or other action related to his injury, subsequent termination, or other actions connected with his situation? 3. Did a break in service (as defined in Article IV of the GER Plan) occur, or was it merely a gap in service? DECISIONS/CONCLUSIONS: The members felt they needed more information in order to make a decision. We will address this question again at the June 21st meeting. If action is required before that time, Jerry, acting as • 3 GERC Chairperson in Dennis's absence, can ask for an electronic vote on the request. NEXT STEPS: Mollie will send information available and ask he above. Jaime will contact Workers decision and some explanation of John's termination and Workers Comp DENNIS FREEBURG REQUEST r Mary Crumbaker/Smith copies of the for a legal opinion on the questions Compensation and request a copy of their the reason for the 75-day gap between granting him long-term disability. MAIN POINTS: Dennis Freeburg is an ex -employee who is retiring in June and wishes to name his roommate (as his common-law wife) as his beneficiary. The law states that a common-law marriage is recognized if four conditions are satisfied: Both parties mutually consent to being common-law spouses. They have co-habited for a period of time. They have represented themselves to the public as being married. They have a general reputation of being married. Points of consideration raised were: 1. Does the GERC accept other forms of documentation as proof of common-law marriage? 2. The GERC does not grant common-law marriage status. 3. Would a modified version of Employee Development's common-law marriage form be acceptable to the GERC? 4. If Mr. Freeburg could wait until after Council has acted on the proposed plan changes, the question of a common-law beneficiary would be a moot point. DECISIONS/CONCLUSIONS• Mollie moved that she submit the Employee Development common-law marriage form to Mary Crumbaker/Smith for revision for use by retirees and that we act on this request at the next meeting. Angie seconded the motion and it passed unanimously. NEXT STEPS: Mollie will submit the form to be revised to Mary Crumbaker/ Smith and keep the committee advised of progress. Mollie will discuss with Mr. Freeburg the possibility of delaying his request for retirement benefits until after City Council has acted on the changes we propose. AUDIT OF PENSION FUND MAIN POINTS: Alan reported that the firm of Price -Waterhouse performed its annual City audit and pronounced the General Employees Retirement Fund in excellent shape, remarking on the funds accumulated in excess of liabilities and reserves needed. The members indicated the level of contribution should be considered as part of the Total Compensation package that is currently being studied. Angie stated that the Total Compensation Committee is comparing the City's total cost of benefits to that of other jurisdictions, but is not comparing the actual benefits with those jurisdictions. DECISIONS/CONCLUSIONS: The members do not recommend a change to the current 0.3553 rate of retirement compensation, but would like to know how our retirement benefits compare with other jurisdictions and what part it will play in the Total Compensation package. NEXT STEPS: The members will talk to Mike Powers, Pete Dallow and Don Botteron, who are currently participating in the Total Comp review. The members will also watch for workshops on retirement benefits which might relate to this situation. This will be discussed again at the June 21st GERC business meeting. AGENDA AND SCHEDULE FOR NEXT MEETING: The next meeting will be June 21, 1990 at 1:00 p.m. in the Finance Conference Room. The agenda will include: 1. John Lamprey's Request 2. Dennis Freeburg's Request 3. The Proposed Plan Changes as submitted to Council 4. Benefit commencement date interpretation The meeting was adjourned at 10:43 a.m.