HomeMy WebLinkAboutRetirement Committee - Minutes - 08/15/1988Admorative Services
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City of Fort Collins
PRESENT
Finance Administration
GENERAL EMPLOYEES RETIREMENT COMMITTEE
August 15, 1988 - Minutes
Angie Powell, Mollie Mercer, Alan Krcmarik, Donna
Groves, Gwyn Strand
ABSENT: Deb McClurkin, Dennis Sumner
The following handouts were distributed:
Memo to Council dated 06/13/88 regarding Guidelines for Work Plans and
Annual Reports
Retirement Conversion Option - information provided from Mike Powers
Member Update - May 1988 - information pertaining to a question from
Mollie Mercer
List of questions to present to Mr. Mazanec.
Investment Report
The following is a summary of the questions asked of Gwyn Strand regarding
the pension investments:
What is happening in the market? - It has been dropping during the
last few weeks, both stocks and bonds.
What are you finding when you make investments? - Bond prices are
drorping so the yield is high. We try to sell at a profit and right
now a are in somewhat of a holding pattern.
A while back we reevaluated some nuclear plant bonds, what happened?
That was during a time when there was an investment committee. The
committee determined the bonds to be a good investment. Basically
what happened was after we purchased the bonds the ratings dropped
and we sold the bonds. At the present time we only buy bonds that
are "A" and "AA" rated and usually only in small amounts because of
the length of time involved in that type of investment.
Do you see our earnings jumping up significantly due to the market right
now? No. We have about $500,000 coming due in December. At that
time we'll look for something with a high yield.
How do you determine the amount of time you want to invest? The
practice used right now is to look for the highest yield for the
shortest time. The City tends to understate the investments and
calculate in a very conservative manner.
300 LaPorte Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (303) 221-6788
General Employees R ement Committee •
August 15, 1988
Page 2
Goals
After looking at the memo directed to Council dated June 16, it was decided
to review the questions for Don Mazanec and prioritize them and place them
in a time line for completion. The questions are:
Is it time to give a cost of living raise to current retirees? (#1 -
1988)
Can changes be made to include the death benefit to an estate rather
than limiting it only to a spouse? (1988)
Would it be possible to allow the beneficiary to change the benefit? For
example, if the retirees stipulates 100% Joint and then dies, can the
beneficiary change this to ten year certain? (1988)
Can we have an analysis on five year vesting? (At first it was decided
to postpone this until later especially if we looked at a possible
conversion to ICMA - this will be included to be done during 1988)
4
Angie will to Dennis Sumner and Deb McClurkin to ask them about their
ideas pursuing the questions targeted for 1988 goals. She'll speak to Mike
Powers prior to submitting the questions to Don Mazanec. Mike may have
some information regarding our questions. A September meeting will be
scheduled at a later date to report any findings on the above four questions.
Angie asked the members to read the Police Advantages & Disadvantages to
Conversion and make thier own listof advantages and disadvantages as relates
to the General Employees Retirement Plan. Please come prepared to discuss it
at the next meeting.
Approved:
by: An lina Powell, Chairperson