HomeMy WebLinkAboutRetirement Committee - Minutes - 05/30/1989u
GENERAL EMPLOYEES RETIREMENT COMMITTEE MEETING MINUTES .
May 30, 1989
Present in the Council's Conference Room were Councilman Chuck Mabry,
Chairperson Angie Powell, members Mollie Mercer, Deb Mickelson, and Dennis
Sumner, and secretary Sue Wilcox. Alan Krcmarik was absent.
Councilman Mabry explained his role as City Council liaison as being a
communications link between Council and the Committee and a sounding board
for GERC's ideas and proposals. His role does not encompass acting as a
part of management staff, making recommendations, nor advocating any
position/proposal from the Committee. It is management staff's
responsibility to shepherd the Committee's work to the Council.
The members then explained the year's work plan and how their work would
interface with City Council. Councilman Mabry suggested that the Committee
not bring items to Council piecemeal if they could be grouped, as grouping
allows Council to see a bigger picture and make better decisions. If an
item is urgent or needs extensive discussion, it might be wise to introduce
it separately. Council should appoint a new GERC member (from among four
applicants) at the June 20th meeting. Mr. Mabry then left the meeting.
The group agreed to meet on July loth or 17th to discuss the steps needed
to begin investigating the possibility of a money -purchase plan. Pete
Dallow will be approached to work with the group and guide it in this step.
• At that time nominations will be considered for a new chairperson, as
Angie's term in that position is ending. The group made tentative plans
to meet for lunch prior to the next meeting in order to thank Deb Mickelson
for her eight years on the Committee and to welcome the new member.
Some of the steps needed for future work include:
1. Deciding how often the group should review the need for a cost of
living adjustment.
2. Surveying other government retirement plans/committees on how they
handle cost -of -living adjustments. (COG or CML might be able to help.)
3. Reviewing the possibility that the new treasurer would become a
resource for the committee.
The First Quarter Investment Report for the GER plan was reviewed. There
were no questions.
The Committee reviewed the request from a representative of Mary LaBadie to
allow the balance in the retirement account to which she is entitled, to be
paid to her in a lump sum.
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• Gen'l Employee Retirement Committee
May 30, 1989 Minutes
Page 2
Concerns expressed included:
1. Affect on the total retirement plan.
2. Setting a precedent.
Dennis Sumner moved that Mrs. LaBadie's request be approved and Deb
Mickelson seconded the motion. The vote was unanimous in favor of granting
her request. However, Dennis asked that Sue (and/or other staff) research
the costs that MMH charges for their various services. It was suggested
that there should have been a request for proposal (RFP) and a contract for
these services.
This is one of several concerns the Committee voiced in relation to Mrs.
LaBadie's request. Other concerns include:
1. Once a retiree selects a payment plan, can the retiree ever change to
another plan?
2. Can a beneficiary choose to change the payment plan after the retiree
• has died?
3. Should all retirees/beneficiaries whose benefits are less than $50.00
per month be given the opportunity to be paid in a lump sum?
A. Would this benefit us by reducing the overhead costs of writing
those monthly checks?
B. Would this damage the retirement fund by withdrawing too much
money?
A note was made that the next time the plan is updated, perhaps the seeming
inconsistencies between Article VI, Section 5 and Article VII, Section 1
should be reviewed with the view of making consistent decisions rather than
reviewing them on a case -by -case basis.
Mollie Mercer then moved that the meeting be adjourned. Dennis seconded
the motion and the meeting was adjourned at 3:22 p.m.
APPRWV D - Angelina Powell, Chairperson
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GENERAL EMPLOYEES RETIREMENT COMMITTEE
Monday, May 30, 1989 1:30 p.m.
Finance Conference Room
AGENDA
I WELCOME Councilman Mabry
a. Introductions
b. Work Plan
C. Recommendations
d. Guidelines
II First Quarter, 1989 Investment Report
III LaBadie
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