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HomeMy WebLinkAboutRetirement Committee - Minutes - 07/27/1989• GENERAL EMPLOYEE RETIREMENT COMMITTEE MEETING MINUTES JULY 27, 1989 MEMBERS PRESENT: MEMBERS ABSENT: Jerry Brown Mollie Mercer Alan Krcmarik Angelina Powell Dennis Sumner Sue Wilcox, Secretary CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at approximately 1:40 p.m. APPROVAL OF MINUTES: Minutes of the July 10th meeting were approved as written. ITEMS OF NOTE: There were no items of note. AGENDA REVIEW: Because Alan had to leave at 2:30 p.m., it was agreed that (1) the class on the investment market, (2) the Status on Medical Benefits for Retirees/Disabled Employees, and (3) the '89-'90 Work Plan should be considered early in the meeting. 1. MEETING/ACTIVITY TOOLS: AGENDA, MINUTES, NOTEBOOKS • MAIN POINTS: Dennis expressed the feeling that so many topics will be discussed at meetings that keeping track of them may be difficult. He proposed to incorporate the format used on the July 10th minutes to keep track of Main Points, Decisions/Conclusions, and Next Steps and to send out prepared agendas. He also proposed using notebooks for each person to make it easier to find material. They would also make it easier for new members to get oriented to the GERC. DECISIONS/CONCLUSIONS: The group was agreeable to the minutes format and the notebook concept, although the organizational structure of the notebooks be evaluated and changed later, if needed. NEXT STEPS: 1. Sue will purchase the necessary supplies and begin using the new formats. 2. Another category will be added to the minutes: Open Items. This will be used to keep track of open items to help ensure they don't get lost in the course of time. 2. INVESTMENT MARKET CLASS MAIN POINTS: Alan offered various options for this course, ranging from a paid instructor with a neutral approach to a free instructor who would be interested in a future business deal with the GERC. • DECISIONS/CONCLUSIONS: The decision was made to wait until a treasurer is hired to see if the new treasurer can provide some basic information. • Members noted they are looking for an informative overview and not to become experts in the investment market as related to the retirement plan. Some of the topics members would like covered are: 1. Kinds of investments available, the benefits and disadvantages of each. 2. How managing a pension fund is different from managing personal funds. 3. Terminology 4. Strategies of investment 5. How to balance risks with higher yields. NEXT STEPS Alan will review this idea with the new treasurer. Members should add any more topics they would like covered to the above list. 3. STATUS OF MEDICAL BENEFITS FOR RETIREES/DISABLED EMPLOYEES MAIN POINTS: Alan attended the meeting of the ad hoc group studying this proposal. Others present were Don Botteron of LIght and Power, Ron Lindroth of Poudre Fire Authority, Greg With of the Police Dept., and Terry Robinson of Water Utilities, and Mollie Mercer and Pan Stultz of Employee Development. Pam will be putting together some background information and researching local examples of such programs (HP, Public Service, and two municipalities). Also the group will document what benefits are currently available and the gaps in coverage. • DECISIONS/CONCLUSIONS: Mollie was chosen to be our representative to that ad hoc group, which will meet on August loth at 10:00 a.m. in Employee Development and approximately every two weeks after that. Alan will attend when possible. NEXT STEPS: Mollie and Alan will report to the GER at our regular meetings. 4. COST -OF -LIVING ADJUSTMENT FOR RETIREES MAIN POINTS: Mollie felt that we should begin to look at what is involved in doing a cost -of -living adjustment. Alan suggested we not make any substantive changes in the plan until we have explored the money -purchase plan. DECISIONS/CONCLUSIONS: It was agreed to discuss this at our next meeting because of time limitations today. NEXT STEPS: Schedule next meeting and put this on the agenda. 5. EDWINA ECHEVARRIA'S BENEFICIARY REQUEST MAIN POINTS: Edwina had wanted to designate her ex-husband as beneficiary in order to see that any benefits were divided among her children. The • current plan does not allow this. The Committee questioned this policy. The feeling was the retired employee should be able to designate whomever they choose as beneficiary. It was noted this only applies in the 120 s • month certain retirement option. the beneficiary IF the employee dies before receiving the first payment? 2. Can the Committee broaden the category of who can be a beneficiary without financial impact to the fund? 3. What impact would paying benefits to an estate have to the fund? 4. Present $ versus future E on benefits projections. DECISIONS/CONCLUSIONS: If there are no financial impacts on the plan associated with broadening the list of beneficiaries, the GERC will propose changing this clause to permit employees to name any beneficiary the y choose. NEXT STEPS: Includes this item on agenda for 8/25 meeting with Don Mazanec. Verify with Don that there is no financial impact on GER with broadening the list of beneficiaries. 6. MERCER MEIDINGER HANSEN CHARGES SUMMARY MAIN POINTS: Sue reviewed the notes she had distributed that outlined the calculation of various charges by MMH. An area for potential savings involves having City employees complete the preliminary computation of benefits to employees? There is also a question about how record -keeping is handled for employees who have a break in their continuity of • participation on in the GER. DECISIONS/CONCLUSIONS: 1. Sue will send a copy of the notes on the meeting with Mazanec to him to see if he agrees with the summary. 2. She will also ask if the form we use for preliminary computations is acceptable for their needs. If this is acceptable, Mollie will begin using this form and we will be able to reduce our costs of calculating benefits by as much as 50%. 3. Mollie will check to see if the record -keeping for employees who have a break in continuity with the GER can be improved. NEXT STEPS: 1. Sue will follow up with Don Mazanec and advise Mollie and GERC of the outcome. 2. Mollie will check at Employee Development about record keeping and report to the GERC. 7. LUMP SUM PAYMENT TO RETIREES/BENEFICIARY MAIN POINTS: Mary LaBadie, beneficiary of James LaBadie, asked if she could receive a lump sum payment of the $58.67 quarterly retirement benefit she had been receiving. The plan only permits the retiree to receive a lump sum payment, but the GERC voted to allow the payment in this case. Mrs. LaBadie changed her mind and stayed with quarterly payments. The GERC felt it was important to note this decision for future reference. DECISIONS/CONCLUSIONS: This conclusion will be noted in the GERC notebooks in the appropriate section. 0 NEXT STEPS: Include in notebook. • 8. WORK PLAN FOR 1989 - 1990 MAIN POINTS: The time designated for this meeting had run out. DECISIONS/CONCLUSIONS: This needs to be discussed at a later time. NEXT STEPS: Schedule another meeting to discuss this. AGENDA d SCHEDULE FOR NEXT MEETING The next meeting will be August 3rd at 1:00 p.m. in the Finance Conference Room. The agenda will include: 1. Discussion of the Work Plan. 2. Questions we need to discuss with Don Mazanec of MMH on August 25th. 3. Setting up a regular meeting schedule for the '89-'90 work year. Date, time, place, and agenda for all future meetings. MEETING REVIEW: It was noted that reminders prior to meetings are helpful to GERC members. Sue was asked to send out meeting reminders a few days before meetings. ADJOURNED: The meeting was adjourned at 2:45 p.m. • OPEN ITEMS: 1. Investment Market Class: reference GERC 7/27/89 minutes.