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HomeMy WebLinkAboutRetirement Committee - Minutes - 08/29/19910 FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE AUGUST 29, 1991 MEETING MINUTES MEMBERS PRESENT: MEMBERS ABSENT: Jerry Brown Mollie Mercer Alan Krcmarik Angelina Powell Dennis Sumner Sue Wilcox, Secretary Mary Crumbaker-Smith and Pam Stultz of Employee Development attended the meeting also. CALL TO ORDER: Dennis called the meeting to order at 1:20 p.m. APPROVAL OF MINUTES: There were two requests for wording changes in the minutes of the July 29, 1991 meeting: Angelina requested that the first paragraph in Item 3 of Open Items entitled "GERC Benefits and Total Compensation" read as follows: "Angelina reported that she discussed the Total Compensation, Phase II employee survey process with Jaime Mares. She asked if the GERC could use that process to get employee retirement need and want profiles. Jaime advised that Employee Development designed the questionnaire to determine employee needs for benefits other than retirement. They would be happy to have us join in the process (departmental meetings, open houses, hot-line questions) in the fall to obtain information on retirement issues. They would also share insight about the most successful SDIC techniques they had used to date. In Section 2 of New Items under Actuarial Valuation, Mollie noted that the last sentence in the first paragraph should read "...and the fund will pay their estates the lump sums, if this benefit is provided for in the Plan in effect at the time these employees terminated employment." Jerry moved that the minutes be approved as corrected and Mollie seconded the motion. The motion was approved unanimously. ITEMS OF NOTE: None REVIEW OF DISCUSSION TOPICS: The order of the agenda topics was changed to accommodate the needs of the members. DISCUSSION TOPICS: 1. COMMITTEE LEADERSHIP MAIN POINTS: Jerry Brown praised Dennis Sumner for his leadership of the Committee and moved that he be re-elected to the position for the next term. Mollie seconded the motion and it passed unanimously. Jerry then nominated Angelina Powell to be vice chairperson and Alan seconded the motion. The motion passed unanimously. CONCLUSIONS/DECISIONS• Dennis Sumner and Angelina Powell will be Chairperson and Vice Chairperson for the General Employees Retirement Committee for 1991-92. -1- NEXT STEPS: None necessary. 2. WORKERS COMP VS LONG-TERM DISABILITY MAIN POINTS: Don Mazanec had not completed the follow-up work with Mary Crumbaker-Smith on this topic from the last meeting, so no discussion was necessary at this time. CONCLUSIONS/DECISIONS: Pam Stultz is satisfied with the wording of the material on this issue which was distributed at the July 29th meeting. Mary can proceed with the proposed Plan changes when Don's questions and concerns have been satisfied and when Stewart Ellenberg of Risk Management approves also. NEXT STEPS: Dennis will call Stewart to see if there are any concerns with the wording. Sue will call Don Mazanec to ask him to check the wording of Mary's memo and to call her with any concerns. 3. AMENDMENTS TO THE GER PLAN MAIN POINTS: There have been no changes to the memo Mary presented at the last meeting. Don Mazanec had said he would consult with his legal staff and check the proposed changes against his file information. He will then contact Mary with any concerns. CONCLUSIONS/DECISIONS: Any changes suggested by Don will be brought to the Committee at the next meeting. NEXT STEPS: The proposed final draft will be brought to the next meeting. 4. UPDATE ON RESPONSE TO LUMP -SUM PAYMENTS LETTER. MAIN POINTS: Sue reported that 50 letters were sent offering lump -sum settlements for terminated employees whose retirement benefits are $100 per month or less. To date, 38 terminated employees have accepted the offer and none have rejected it. However, we have not heard from 12 individuals, who will require followup letters. CONCLUSIONS/DECISIONS: Committee members thanked Sue for her good work on this effort. Sue thanked Mollie for providing good information so that finding most of the former employees was not difficult. NEXT STEPS: Sue will begin distributing lump -sum payments on September 23rd and will attempt to contact the remaining 12 former employees. 5. PROBLEM STATEMENTS & TIME LINES - This topic concerns the seven items which have been on the GERC "Topics for Future Discussions" list. These items were discussed one by one. A. "Competitiveness of Plan Based on Total Compensation Study" MAIN POINTS: The total compensation study has not provided much -2- • information on the competitiveness of the Fort Collins General Employees Retirement Plan. In discussion with Don Mazanec, he advised that the best way to approach this is from the perspective of costs to the organization. It was his observation that the combined costs of the General Employees Retirement Plan, plus Social Security, plus the 3% matching ICMA contribution, were competitive with other government entities in the area. DECISIONS/CONCLUSIONS: From a total Compensation perspective, there does not appear to be a basis for changing (up or down) the costs of the GERP. NEXT STEPS: No further action is planned at this time. B. "Defined Contribution Study" MAIN POINTS: The defined contribution study was originally deferred until changes to the current plan had been studied and resolved. Many of those changes have been made and others are in the process of being made. CONCLUSIONS/DECISIONS: After the changes currently being considered are resolved, the GERC will further pursue this issue. NEXT STEPS: Follow up at a later date. C. "Staff Committee on Pensions Review of Coordination of All Pension Activities " MAIN POINTS: A staff committee has been formed to review and coordinate the pension activities of these groups. The committee is in the early stages of its work. The GERC would like to follow the work of the committee. CONCLUSIONS/DECISIONS: The GERC will ask that copies of this committee's minutes be sent to the chairperson and vice -chairperson of the GERC. NEXT STEPS: The chair and vice -chair will report on the Committee' progress to the GERC. The GERC will follow up on this Committee's progress as needed. D. "Possible Involvement of GER Plan in the 401(a) Deferred Compensation Plan" MAIN POINTS: The evaluation and consideration of other companies to handle the City's 401(a) accounts was modified to only address the Police and Fire retirement programs. CONCLUSIONS/DECISIONS: At this time the evaluation is completed and does not relate to the General Employee's retirement plan or employees covered by the GERP. No action will be taken by the GERC at this time. NEXT STEPS: None. -3- E. "Plan Improvements in the GERP" MAIN POINTS: A number of improvements are currently under consideration. These are: 1. Disability issue related to LTD and Workers Comp. 2. Clarification of membership exceptions. 3. Limiting the period after return to employment for maintaining continuity of service for GERP purposes. 4. Clarifying the date for payment of monthly retirement benefits. 5. Spousal consent requirement of retirement option selection. 6. Addition of one (1) year requirement to mesh with break -in-service provision. NOTE: The above items are discussed in the July 29, 1991 memo to the Retirement Committee from Mary Crumbaker-Smith. Other items the Committee has identified for consideration are: 7. Change to 5-year vesting. 8. Basing retirement income on the average of the three consecutive years' highest earnings, rather than the five highest consecutive years, as is currently used. 9. Implementing a "Rule of 80". CONCLUSIONS/DECISIONS: These items are being discussed per item #3 above. NEXT STEPS: See #3 above. F. "Resolve Retirement Benefit Questions Related to Employees Injured During Employment, i.e. Sehestedt and Hattan" MAIN POINTS: These questions relate to the Workers Comp VS Long Term Disability issue addressed in Item #2 above. These situations occurred before this issue was clarified, as is currently being done. CONCLUSIONS/DECISIONS: These questions will be addressed after item #2 above is resolved. Based on resolution of this issue for future incidents of this nature and legal advice, the Committee will be able to make a better -informed decision on these existing situations. NEXT STEPS: Address this situation when Item #2 above is resolved. -4- G. "Pension Benefit Plans Workshop" MAIN POINTS: The Committee remains concerned about the education of members relative to pension benefits. CONCLUSIONS/DECISIONS: The Committee members will continue monitoring workshops and will consider sending members to any that seem worthwhile. Angelina Powell reported she had information on a workshop to be held in Denver that appeared worthwhile. It was suggested that Angelina attend this workshop and it was agreed that her expenses for the workshop ($25 registration plus mileage) would be paid by the GERP. NEXT STEPS: Angelina will attend the workshop if possible. Committee members will continue to watch for training opportunities. ITEMS FOR FUTURE DISCUSSION 1. 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.) 2. Progress made by staff committee on pension activities. 3. Pension Investment Seminar/Public Benefit Plans Workshop. 4. Resolve retirement benefit questions related to employees injured during employment with the City, i.e. Sehestedt and Hattan. AGENDA & SCHEDULE FOR NEXT MEETING The next meeting will be Thursday, October 10, at 1:15 p m. in the Finance Conference Room. (This meeting was later re -scheduled for Monday, October 21, at 10:00 a.m.) The agenda will include: 1. Workers Comp VS LTD 2. Report on lump -sum payments 3. Review of Proposed Amendments ADJOURNMENT Mollie moved and Angelina seconded a motion to adjourn at 3:25 p.m. -5-