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HomeMy WebLinkAboutRetirement Committee - Minutes - 09/07/1995• FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE SEPTEMBER 7, 1995 MEETING MINUTES COUNCIL LIAISON: Ann Azari, Mayor COMMITTEE MEMBERS PRESENT: ABSENT: Jerry P. Brown Jacci Peterson Gary Ellis Dave Meyer Alan Krcmarik (Member & Staff Support) OTHERS PRESENT: Sue Wilcox (Staff Support - Secretary) Dave Agee (Staff Support - Controller) Laurie Harvey (Staff Support - Benefits Administrator) Russ Proctor of The Watson Wyatt Company, the City's actuarial firm Bobbie Burnette (Staff Support - Assistant City Attorney) Ginger Purvis, Instrument & Control Engineer, Water Department Rich Shannon, Utilities Director CALL TO ORDER: Chairperson Jerry P. Brown called the meeting to order at 1:17 p.m. in the Finance Conference Room of City Hall West on September 7, 1995. There were no changes in the agenda. APPROVAL OF MINUTES: Dave Meyer moved and Jacci Peterson seconded the motion to approve the August 3, 1995 meeting minutes as distributed. The motion passed unanimously. ITEMS OF NOTE: 1) Jerry noted the electronic mail memo sent to GERC members from Acting City Manager Diane Jones in which she reported that the Early Out Program is not financially feasible for the City and no offers will be made. 2) A plan for medical insurance benefits for retirees was"mentioned at the August 3rd meeting. However, it was not made clear that they would be available only to employees who retire after the plan receives approval and would not be available to those who are currently retired. 3) Jerry reported on his meeting with Mayor Azari, who is the Council liaison to this Committee. They discussed the $125,000 shortfall in the GERC current valuation report and the Mayor urged Jerry to include it in the 1996 budget process through a memo to Council members. However, Pete Dallow, Administrative Services Director, feels it can be addressed by staff as part of the current Total Compensation budget process. It is proposed that the contribution for the GER Plan be increased to 4.093% of pay for 1996. The contribution rate will be revised by the actuary for use in the 1997 budget process. 4) Also, the Mayor asked Jerry to contact a retiree who requested that the GERC consider a cost -of -living adjustment (COLA) for current retirees. Jerry did this in a letter which stated that there are no funds currently available for any Plan enhancements (including COLAs) and in fact there is a deficit. However, in 1996 the Committee does intend to look for ways to try and provide benefit increases. 5) Gary Ellis reported that he will be able to access the HPDesk system soon. He'll send out a message when this happens. so DISCUSSION TOPICS: 1. PLAN MEMBER/CITIZEN COMMENTS: There were no member or citizen comments. 2. EMPLOYEE REQUEST FOR REINSTATEMENT IN GER PLAN In 1989 Ginger Purvis had been a classified employee of the City of Fort Collins for 13 years and was a vested GER Plan member with an earned retirement benefit. In order to pursue an engineering degree, she left the classified City position in 1989, but was employed by the City as both an hourly and contractual employee. Ginger recently returned as a classified City employee after a five year, seven month break in service. Because of the break in service, she would again have to earn vested status. Ginger asked the GER Committee to allow her to "buy back into the Plan" by paying the Fund the amount of money that the City would have contributed had she continued as a classified employee during the 5 year, 7 month break, and to allow that time to count towards her years of service. She also asked that the Committee consider a Plan change that would define a break in service as "five years or the employee's previous length of service, whichever is greater" and make it retroactive to include her situation. The Committee members discussed the current provisions of the Plan, how the items Ginger requested would affect the GER Fund, and the ramifications it would have to the Plan because of other employees in similar situations. The actuary noted that taking the amount of money needed to "buy back in" and putting it in an IRA or other investment might be more beneficial to her. Utilities Director Rich Shannon stressed that because the workforce is very mobile, the GERC should look at some of the changes Ginger requested as enticements to bring back good employees. He likened City employment to "golden handcuffs". Because of the need to discuss legal and personnel issues related to this, Dave Meyer moved and Jacci Peterson seconded a motion to adjourn to executive session for discussions. The motion was approved unanimously and Bobbi Burnette and Laurie Harvey were requested to meet with the Committee members. All others left the room at 2:00 p.m. At 2:30 p.m. staff members were invited to return. CONCLUSIONS/NEXT STEPS: Alan Krcmarik moved and Gary Ellis seconded a motion that the GERC not grant the request "to buy back" service because the plain language in the Plan does not allow it. The motion was approved unanimously. Dave Meyer moved and Jacci Peterson seconded a motion that the General Employees Retirement Committee not consider amending the Plan to address the request for a change in the length of a break in service at this time, because there are other potential Plan enhancements that the GERC believes should have priority. The motion was approved unanimously. Jerry will notify Rich Shannon and Ginger Purvis of the Committee's decisions and will also put the decisions in a letter. Because of another commitment, Alan Krcmarik left the meeting at this time. -2- • 3. UPDATE ON PERSONAL RETIREMENT BENEFITS REPORT FORM REVISION MAIN POINTS: The Personal Retirement Benefits Report form distributed each spring provides individual members with a projection of their retirement benefits, including Social Security. The Committee is considering expanding the form to include information about ICMA 401(a) and 457 plans and other information related to retirement. Laurie Harvey contacted ICMA and they can provide the information needed for such a form with one week's notice. The cost of the form we currently use is about $2400 annually. The cost for the expanded form would be about $7500. To print it in color would add to the cost, but the City's logo can be added. CONCLUSION/NEXT STEPS: The members concurred that it would not be appropriate for the GER Fund to pay for providing ICMA information, but that a form showing GERP, Social Security, and ICMA benefits would be desirable. Russ will provide a cost breakdown for putting ICMA information on the expanded form. Laurie Harvey will approach the local ICMA representative about sharing the cost of the expanded form and questions about confidential- ity. She will also discuss a Human Resources contribution with Jaime Mares. 4. UPDATE ON REVISION OF 'PLANNING FOR YOUR RETIREMENT" BOOKLET MAIN POINTS: Jacci Peterson, Lauri Harvey, and Sue Wilcox have begun revising the "Planning For Your Retirement" booklet. They propose retitling it as the "General Employees Retirement Plan Summary", as it is used for new employees, current employees, and employees approaching retirement. The changes are extensive in form, but not in the contents of the book. The task group asked for some direction on pages 4-8 covering the options for those leaving the Plan and for retiring. Russ clarified that "early retirement" is leaving active City employment AND receiving a retirement benefit. He also said that spousal consent is required for any choice of benefit payment that does not include a payment to the spouse when the retiree dies. CONCLUSION/NEXT STEPS: Russ noted that the suggested outline of the sections might be helpful. Any comments or questions can be directed to the task group members. Committee members will review the information for the next meeting. 5. CHANGE OCTOBER MEETING DATE MAIN POINTS: Because the chairperson will be out of town on the regular October meeting date, he asked that the meeting be moved to another date. CONCLUSIONS/NEXT STEPS: Jacci moved and Dave Meyer seconded her motion to meet a week later on Thursday, October 12th at 1:15 p.m. in the Second Floor Conference Room. 6. REVIEW OF STANDING RULES MAIN POINTS: The Standing Rules guide the activities of the Committee. One of the provisions of the Standing Rules is that they be reviewed annually. -3- CONCLUSIONS/NEXT STEPS: As there were no suggested revisions to the Standing Rules, they will remain unchanged. Changes can still be made at any time during the year, if necessary. 7. ELECTION OF GERC OFFICERS MAIN POINTS: There was some discussion of the responsibilities of the offices, term limits, and who had held the positions. CONCLUSIONS/NEXT STEPS: Gary Ellis moved that the current officers (Jerry P. Brown, Chairperson, and Dave Meyer, Vice Chairperson) be re-elected. Jacci Peterson seconded the motion and it passed unanimously (4-0). 8. OTHER BUSINESS A. "KIPLINGER RETIREMENT REPORT" NEWSLETTER MAIN POINTS: Sue noted that Alan had subscribed to the "Kiplinger Retirement Report" for the Committee to review. His feeling was that it was geared more to retirees, rather than to the Committee members. The subscription can be canceled at any time, with the balance refunded. CONCLUSIONS/NEXT STEPS: The Committee members agreed that it had good information, but information that is already available. The consensus was to cancel the subscription. Russ Proctor will provide a copy of a Kiplinger survey of 401k members that might be interesting to the Committee. B. GERP BENEFITS / WORKERS COMPENSATION / DISABILITY / MEDICAL INSURANCE MAIN POINTS: Gary Ellis reported an employee question related to the results of a study made of a possible connection between reduced early retirement benefits and higher medical insurance and workers compensation costs due to injuries to older workers. It was discussed with Jaime in Human Resources also. Gary noted that there are 6 former Light and Power employees receiving disability payments, plus other employees who are on sick leave due to injuries. CONCLUSIONS/NEXT STEPS: This topic has been discussed before and references in the minutes will be researched. Gary will contact Jaime to see what the current status is, but no known written report is available. C. CHANGES IN CLASSIFICATION OF INVESTMENTS MAIN POINTS: Gary said that the discussion last month relating to moving from mutual funds with a 5-star rating to those with a 4-star rating may require a change in the City's Charter. The requirements for investments are actually a part of the Financial Policies and would have to be changed by City ordinance. CONCLUSIONS/NEXT STEPS: The Financial Policies are reviewed annually and this is one area that will be looked at for revision. GE AGENDA & SCHEDULE FOR NEXT MEETING The next meeting will be October 12th at 1:15 p.m. in the 2nd Floor Conference Room of City Hall West. The agenda will include: 1. Suggestions for "GERC History" Format 2. Revisit the "Rule of 80" in Relation to Employee Interest/ Feasibility 3. Update on Personal Retirement Benefits Report Form Revisions 4. Update "Planning for Your Retirement" Booklet 5. Periodic Review of Performance of Russ Proctor/Watson Wyatt Co. ADJOURNMENT The meeting was adjourned at 4:05 p.m. FUTURE MEETING SCHEDULE: Zna moor Gonterence KOom of UltY Nall west. NU LaPorte Ave. The General Employees Retirement Committee normally meets at 1:15 p.m. on the 1st Thursday of each month in the 2nd Floor Conference Room, City Hall West. THURSDAY, OCTOBER 12, 1995 THURSDAY, NOVEMBER 2, 1995 THURSDAY, DECEMBER 7, 1995 THURSDAY, JANUARY 4, 1996 THURSDAY, FEBRUARY 1, 1996 -5-