Loading...
HomeMy WebLinkAboutRetirement Committee - Minutes - 11/05/1992FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE NOVEMBER 5, 1992 MEETING MINUTES COUNCIL LIAISON: Loren Maxey MEMBERS PRESENT: MEMBERS ABSENT: Jerry P. Brown Mollie Mercer None Dennis Sumner Dave Meyer Alan Krcmarik (Member & Staff Support) OTHERS PRESENT: Mary Crumbaker (Staff Support - Legal) Bob Eichem (Staff Support - Investments) Sue Wilcox (Staff. Support - Secretary.) CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:30 p.m. in the Finance Conference Room on November 5, 1992. APPROVAL OF MINUTES: Mollie Mercer moved and Jerry Brown seconded a motion to approve the minutes as distributed. The motion carried. ITEMS OF NOTE: Dennis noted that Mary had another commitment at 2:30 p.m. and Dave Meyer had to leave at 3:00 p.m. REVIEW OF DISCUSSION TOPICS: The agenda was approved. DISCUSSION TOPICS: 1. QUARTERLY INVESTMENT REPORT MAIN POINTS: Bob Eichem noted that his strategy has been to minimize the amount of cash on hand because the current return is so small (2.75%-3.15%). He said that he preferred not to take short-term gains, which would make the near -term figures look good, but would be bad for long-term yields. Investment in the four mutual funds continues as planned. Interest income is lower this quarter, but overall the year will meet the projected budget of 7.5%. Bob suggested that in the future the Budget Office involve the GERC in the projections related to the GER Plan. CONCLUSIONS/DECISIONS: The members commended Bob for his investment strategies and an excellent report. NEXT STEPS: The Budget Office will be requested to involve Bob and the GERC in the budget projections for 1994. 2. RETIREMENT BENEFIT QUESTIONS RELATED TO EMPLOYEES INJURED DURING EMPLOYMENT WITH THE CITY MAIN POINTS: Mary Crumbaker stated that other work items had required her attention, and that a decision on these two items was not critical at this time. She asked that they be deferred to a later meeting. -1- CONCLUSIONS/DECISIONS: The Committee concurred that these could be deferred. NEXT STEPS: These items will be added to the December agenda, with the understanding that, if necessary, they can be deferred to January. 3. PRIVACY VS INCLUSIVENESS OF MINUTES MAIN POINTS: The question of how to maintain privacy for individuals whose cases require discussion and decisions by the General Employees Retirement Committee, while still maintaining the necessary records of the intent, decisions, and precedents was discussed. Mary's observation was that the Committee members can move to call an executive. session for discussion of mattersrelated to .specific individuals. Sixty percent of members must vote to hold the executive session. The normal procedure is to then limit attendance to GERC members and necessary support staff while discussion is conducted. Separate minutes are kept of the executive session. The Committee then resumes its regular session. Mary will check on whether decisions may be made in executive sessions. CONCLUSIONS/DECISIONS: The GERC will follow the methods used by City Council for executive sessions. NEXT STEPS: Sue will contact the City Clerk's Office for direction on how they handle executive session minutes. Mary will check on the information presented at the Boards and Commissions workshop last month and will also check Codes related to the matter of decision -making during executive sessions and report back to the Committee. 4. FEDERAL NON-DISCRIMINATION GUIDELINES MAIN POINTS: Mary reported that the federal government had intended to implement new guidelines pertaining to discrimination in pension plans either in 1991 or 1992, but that implementation has now been postponed to January 1, 1995. The discrimination involved is not related to race or gender, but rather that pension plans frequently differentiate between highly -compensated employees and lower - compensated employees. The new guidelines would require that there be no discrimination in retirement benefits based on pay levels. This would apply primarily to private business, but it could eventually be applied to governmental entities. Mary wants to anticipate this and consider its application to the City's plan. Don Mazanec is also tracking implementation of these guidelines. Mary advised that given the time delays on implementation of these guidelines, it is likely there will be other changes in them and it is premature to take any action at this time. -2- • 0 CONCLUSIONS/DECISIONS: The members concluded that no action could be taken on this issue at this time. NEXT STEPS: Mary will advise the Committee when and if these guidelines are closer to impacting the GERP. 5. PENSION EDUCATION PROGRAM & SCHEDULE CHANGES MAIN POINTS: The press of other City activities, and the planning and printing of the brochure and handbook taking longer than anticipated, have meant that the schedule for implementing the education sessions with employees has had to be delayed. CONCLUSIONS/DECISIONS: The. Committee. members agreed. .to.,defer ..the implementation of the training and education program until after the holidays and agreed to the following tentative timetable: 1. Training Committee with Amy in AM January 7, 1993 & GERC meeting at regular time. 2. Distribute Game of Life brochure with January 8 January 8 paychecks. 3. Conduct education sessions (2 members Jan 19 - Feb 26 per session) at Lincoln Center or Council Chambers, Collindale, WWTP#2 Conference Room, Park Shop area, Library's Delatour Room and Service Center. 4. Distribute handbooks at education Jan 19 - Feb 26 sessions with remainder distributed in interdepartmental mail. 5. Conduct survey of employees March 1 Both the brochure and handbook should be completed and printed by January 1, 1993 with no problem. NEXT STEPS: Sue will check on getting labels for all city employees for use on the handbooks and surveys. Dennis will confirm the January 7th date with Amy and continue to work with Kathleen Tracy on the brochure and handbook preparation. 6. OTHER BUSINESS A. AMENDMENT 1 EFFECTS MAIN POINTS: Alan Krcmarik has been meeting with other municipalities regarding the effects of the newly -passed tax limitation amendment to Colorado constitution and he anticipated no direct affects from the amendment on the pension program, as there are no employee contributions. Depending on the eventual ramifications of the amendment on overall City's financial health, it is possible that the amount contributed to the pension plan could be impacted if employee compensation is impacted by the financial wellbeing of the City. -3- CONCLUSIONS/DECISIONS: No action is anticipated at this time. NEXT STEPS: Alan will continue to monitor the ramifications of Amendment 1's adoption and report any items of concern to the Committee. B. AUDITOR'S MANAGEMENT LETTER MAIN POINTS: Alan reported that the auditors covered a number of items connected with the City's pension plans because of the possible questions related to the insurance industry. The management letter recommends that the City compare defined benefit and defined contribution plans and decide on one or the other. CONCLUSIONS/DECISIONS: The Committee would like to see a copy of the final management letter from the auditors. NEXT STEPS: Alan will bring the final letter to the December 3 meeting. C. 1992 ANNUAL REPORT MAIN POINTS: This is not due to the City Clerk until January 31, 1993. Various ideas were shared for inclusion. CONCLUSIONS/DECISIONS: The Committee would like to review this at the January meeting. NEXT STEPS: Dennis will prepare a draft of the annual report for members' review. D. 1993 WORK PLAN MAIN POINTS: Dennis had distributed a draft of the 1993 Work Plan of Committee activities which goes to City Council. It contains the continuance of the Education Program, exploring possible plan improvements, and legal review of IRS requirements concerning an employee's bankruptcy. There was discussion of the draft. CONCLUSIONS/DECISIONS: The Committee concurred with the items outlined and directed Dennis to continue his efforts. NEXT STEPS: Dennis will finalize the draft and submit it to the Clerk's office. E. RETIREMENT CLASSES MAIN POINTS: Mollie has just completed another retirement class for employees in the 50+ age group. There was a question of whether these classes would continue after Mollie retires next year. Good feedback has been received about the classes and it would be unfortunate if they did not continue. IEZ a 0 CONCLUSIONS/DECISIONS: The Committee members commended Mollie for the good job she does in the classes and agreed that the classes should continue. NEXT STEPS: Dennis will contact Jaime Mares of Employee Development about possible plans to continue the classes. ITEMS FOR FUTURE DISCUSSION 1. Pension Investment Seminar/Public Benefit Plans Workshop 2. Possible involvement of GER Plan in the 457 deferred compensation plan. 3. Plan improvements A. Defined contribution study. (Refer to 10/26/89 meeting minutes.) Delayed until changes to the current plan have been studied and resolved. (Refer to 1/25/90 minutes.) B. Possible conversion of GER Plan to a 401 defined contribution plan. C. Rule of 80 4. GERP / Workers Comp / Disability Proposal 5. Federal non-discrimination guidelines (refer to 11-5-92 minutes). 6. Monitor progress by staff Pension Review Group 7. Annual Report - review in March, 1993 AGENDA & SCHEDULE FOR NEXT MEETING The next meeting will be December 3, 1992 at 1:15 p.m. in the Finance Conference Room. The agenda will include: 1. Pension Education Program Update 2. Executive session guidelines & requirements. 3. Review of Auditor's Management Letter. 4. Retirement benefit questions related to two specific employees injured during employment with the City. -5- ADJOURNMENT The meeting was adjourned at 3:01 p.m. REGULAR MEETING SCHEDULE (normally held at 1:15 p.m. in the Finance Conference Room, City Hall West): THURSDAY, DECEMBER 3, 1992 THURSDAY, JANUARY 7, 1993 THURSDAY, FEBRUARY 4, 1993 THURSDAY, MARCH 4, 1993 THURSDAY, APRIL 1, 1993 THURSDAY, MAY 6, 1993 THURSDAY, JUNE 3, 1993. Special Training Session: Morning of Thursday, January 7,.1993, in the Second Floor Conference Room of City Hall West. Time not yet set. 1115