The URL can be used to link to this page

Home My WebLink AboutRetirement Committee - Minutes - 08/06/1992• FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE AUGUST 6, 1992 MEETING MINUTES MEMBERS PRESENT: MEMBERS ABSENT: Mollie Mercer Dave Meyer Jerry P. Brown Dennis Sumner Alan Krcmarik (Member & Staff Support) OTHERS PRESENT: Bob Eichem (Staff Support - Treasury Administrator) Sue Wilcox (Staff Support - Secretary) Mary Crumbaker (Staff Support - Legal) Ann Turnquist (Staff Committee on Pension Activities) COUNCIL LIAISON: Loren Maxey Don Mazanec and Amy Coffern of William M. Mercer, Inc. attended also. CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:15 p.m. in the Finance Conference Room. APPROVAL OF MINUTES: Sue reported that Pam Stultz had submitted a correction related to the topics in the "Items for Future Discussion" section concerning the distinction between the ICMA 401(a) plan (which is a defined contribution or "money purchase" plan) and the ICMA 457 plan (which is a deferred compensation plan). Mollie Mercer moved that the minutes be approved as amended by Pam's information and Alan seconded that motion. It was approved. ITEMS OF NOTE: Angelina Powell is unable to attend today's meeting due to a schedule conflict, but asked to be kept informed of progress with the Education Program. Jerry P. Brown is attending his daughter's wedding in Arizona. REVIEW OF DISCUSSION TOPICS: The agenda was approved. DISCUSSION TOPICS: 1. PENSION EDUCATION PROGRAM - BROCHURE REVISIONS A. GER PLAN HIGHLIGHTS BROCHURE MAIN POINTS: Amy Coffern presented a second draft of the brochure information containing the changes suggested at the last meeting. Ann Turnquist participated in this discussion, sharing comments from Chuck King of ICMA and Pam Stultz, Employee Development benefits administrator. In this discussion the Committee confirmed its desire to cover how the three elements of retirement income (Social Security, GERP, and ICMA) work together, but with the emphasis on information about the General Employees Retirement Plan. It is meant to be general in scope, without the detailed information that will be covered in the Handbook. The draft was reviewed and revised page by page. -1- CONCLUSIONS/DECISIONS: Amy will make revisions as suggested by the Committee. Additionally, Alan will review the changes suggested by Chuck King and Pam Stultz and will discuss with Dennis any comments he feels should be included. He will then contact Amy with any additions or changes. (See Post Notes on page 5 for update.) Amy will make the suggested revisions in the draft. Sue will contact Kathleen Tracy to advise her about using the Game of Life theme, so Kathleen can become familiar with it if she wishes. NEXT STEPS: August 17th - Amy to have revised draft of brochure to members and brochure disc to Kathleen to begin final layout. September 1 - Target competition date. B. REVISION OF RETIREMENT BENEFITS HANDBOOK MAIN POINTS: The pension handbook entitled "Planning for Your Retirement" was reviewed in detail and changes were requested. CONCLUSIONS/DECISIONS: Mary Crumbaker and Don Mazanec will work together to revise the section on disability (pages 12-13-14) and distribute another draft to the group. Amy will revise the draft document. NEXT STEPS: August 10-12: Don to FAX revised disability section to Amy, who will FAX it to Mary Crumbaker for review. August 21st: Don and Mary will have their changes on the disability section to Amy. August 24-25: Amy will send revised handbook to Sue for distribution to members. September 15: Target completion date. C. FORTNOTES ARTICLES MAIN POINTS: Amy had comments on Angie's outline of topic ideas. Although "how the benefit is calculated" was not included, it will be discussed in the training sessions. Options for medical benefits for retirees (outside of the GER Plan) can be outlined as another question for the Fortnotes articles. CONCLUSIONS/DECISIONS: The tone of the articles should emphasize the City's contributions to the three elements of the retirement program (GERP, Social Security, ICMA) and other assistance it provides, such as the financial planner during the benefits selection process and the retirement preparation classes it provides. NEXT STEPS: The next Fortnote article (written by Mollie) is at the printer for distribution next week. Dave distributed a draft of his next article for comments before August 17th. -2- D. TRAINING SESSIONS MAIN POINTS: Amy asked for an outline of what the Committee wanted to cover in the training session. CONCLUSIONS/DECISIONS: The following was agreed upon: The training sessions should be no longer than one hour. The information to be presented and relative emphasis was agreed upon: a. Informative information as covered in the Plan Highlights brochure. b. Other Topics (20%) (1) Ideas for possible changes to the Plan: --Defined contribution --Rule of 80 --36-month Average Annual Pay --Retiree Medical Coverage --Death-before-age-55 benefits (2) Explain next steps (3) Survey NEXT STEPS: Amy will put together a draft of the presentation and will send it to Sue for distribution to members and review. The Committee tentatively scheduled a training meeting for the members on October 2 from 8:30-12:00. (The time will be confirmed with Jerry and Angelina.) Members will be given training to present the employee information sessions. Following this session, a timetable for employee information presentations will be developed. (See Post Notes on page 5 for update.) 2. ACTUARIAL VALUATION REPORT MAIN POINTS: Don Mazanec presented the 1/1/92 Actuarial Valuation Report. He noted the retirement funds have performed well. He also noted the current funding requirement for the plan is 2.889%. Don suggested the Committee continue to monitor the rate of return from fund investments. Given the soft economy, reduced returns should be anticipated. Don pointed out that the City auditors may again incorrectly conclude the retirement fund has excess assets. Given that the total assets of the Fund, plus the percentage of payroll contributed are both required to meet the fund obligations, we should be able to clarify any incorrect conclusions drawn through the audit process. CONCLUSIONS/DECISIONS: Don Mazanec will be included in discussions with the City's audit firm next year when they begin their annual audit. Hopefully, this will help avoid the confusion the audit has created in the past. -3- NEXT STEPS: Bob Eichem will keep the committee informed about stock market activity affecting the Plan funds. 3. STAFF COMMITTEE ON PENSION ACTIVITIES Due to the delay in getting to this topic and a meeting commitment for Ann Turnquist, this topic was delayed until next meeting. 4. QUARTERLY INVESTMENT REPORT MAIN POINTS: Bob Eichem presented the investment report for the second quarter of 1992. He noted the Plan's return for the first half of 1992 was 8.52%. This compared favorably to the target yield for comparable treasury securities of 6.63% He also noted that the first purchases of equity mutual funds, as approve by the GERC, were made in June. A dollar -averaged $100,000 was invested in four funds ($25,000/fund) over a four -week period. Bob pointed out that he expects interest rates to continue to decline in the near future. CONCLUSIONS/DECISIONS: The Committee thanked Bob for his report and the continued good performance he has achieved with the Plan's portfolio. NEXT STEPS: Bob will continue investing in mutual funds as earlier approved by the GERC. The third quarter report will most likely be presented at the November 5 meeting. 5. RETIREMENT BENEFIT QUESTIONS RELATED TO EMPLOYEES INJURED DURING EMPLOYMENT WITH THE CITY. MAIN POINTS: Mary Crumbaker distributed two memos discussing these questions. CONCLUSION/DECISIONS: Due to the late time, discussion was re- scheduled for the next meeting. NEXT STEPS: This will be discussed further at the next GERC meeting. ITEMS FOR FUTURE DISCUSSION 1. Possible involvement of GER Plan in the 401(a) defined contribution plan. 2. Plan improvements A. Possible involvement of GER Plan in the 401(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.) -4- i C B. Rule of 80 3. GERP / Workers Comp / Disability Proposal 4. Monitor progress by Staff Committee on Pension Activities. AGENDA & SCHEDULE FOR NEXT MEETING The next meeting will be September 3, 1992 in the Finance Conference Room. The September agenda will include: 1. Staff Committee on Pension Activities - Ann Turnquist distributed a handout of information that she will be presenting next month. 2. Retirement benefit questions related to employees injured during employment with the City, i.e. Sehestedt and Hattan. Mary Crumbaker's memos related to these individuals were distributed for review for the next meeting. 3. Pension Education Program 4. Election of officers ADJOURNMENT The meeting was adjourned at 5:00 p.m. MEETING SCHEDULE: THURSDAY, SEPTEMBER 3, 1992 THURSDAY, OCTOBER 1, 1992 SPECIAL MTG: FRIDAY, OCT. 2, 1992 8:30-12 THURSDAY, NOVEMBER 5, 1992 THURSDAY, DECEMBER 3, 1992 POST NOTES: Alan felt, and Dennis concurred, that the information submitted by ICMA was pertinent, but too detailed for inclusion in the brochure. The training session has been confirmed for Friday, October 2, 1992 from 8:30 a.m. to Noon in the City Hall West 2nd Floor Conference Room. (This is directly across from the City Manager's Office.) Both Jerry and Angelina are available that day. -5-