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HomeMy WebLinkAboutRetirement Committee - Minutes - 11/03/1994FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE NOVEMBER 3, 1994 MEETING MINUTES COUNCIL LIAISON: Ann Azari, Mayor COMMITTEE MEMBERS PRESENT: ABSENT: Jerry P. Brown Jacci Peterson Dennis Sumner Dave Meyer Alan Krcmarik (Member & Staff Support) OTHERS PRESENT: Sue Wilcox (Staff Support - Secretary) Bobbie Burnette, (Staff Support - Asst. City Attorney) Dave Agee (Staff Support - Controller) Russ Proctor of The Wyatt Company, the City's actuarial firm. CALL TO ORDER: Chairperson Jerry P. Brown called the meeting to order at 1:25 p.m. in the 2nd Floor Conference Room of City Hall West. APPROVAL OF MINUTES: Dave Meyer suggested the following changes to the October 10, 1994 minutes: Under Item 4, "Request for Advance Payment of Retirement Benefits", the next to the last sentence should read: "The Committee offered to guarantee to the physician that the retiree's benefit would be paid at the end of October." Dave further suggested that the sentence under "Conclusions/Next Steps" read: "The Committee denied this request for an advance payment of the retirement benefits because there was no precedent for granting such a request and no policy to address advance payments." Alan requested that Item 5 "2nd Quarter 1994 Investment Report", include the rate of return for mutual funds in the 2nd quarter (-2.91%). Dennis moved and Alan seconded a motion that the minutes be approved with suggested changes. The motion was approved unanimously. ITEMS OF NOTE: There were no items of note. DISCUSSION TOPICS: 1. PLAN MEMBER/CITIZEN COMMENTS: There were no member/citizen comments. 2. INTRODUCTION OF ROBERTA (BOBBIE) BURNETTE Jerry introduced Bobbie Burnette, assistant City attorney for personnel matters. Bobbie, a graduate of the University of Nebraska law school, is returning to Colorado after working in labor relations in California. CONCLUSIONS/NEXT STEPS: The members welcomed Bobbie and invited her to attend all future meetings. 3. UPDATE ON MONEY PURCHASE PLAN/457 SELECTION PROCESS MAIN POINTS: The information meetings concerning the one-time mandatory selection of Money Purchase Plan (MPP) and 457 contributions have begun. -1- Printed information about the education and selection process was distributed to all GER Plan members with the benefits selection forms. Russ Proctor and Jeff Kraft of The Wyatt Company conducted training classes for City trainers. No position, pro or con, is being taken by those doing the training. ICMA representatives will be at all information sessions and a financial planner will be available for consultations during the benefits selection process. The deadline is November 23rd for completing the selection form. Various aspects of the two plans were discussed. CONCLUSION/NEXT STEPS: Dave Agee will report on the results of the selection process at the December meeting. 4. STATUS OF "EARLY OUT" TASK FORCE STUDY MAIN POINTS: Dennis Sumner reported that the Executive Lead Team (EL Team) is still considering the "Early Out" proposal. CONCLUSIONS/NEXT STEPS: The EL Team will discuss it again on November 16th. 5. MERCER/WYATT TRANSITION MAIN POINTS: William M. Mercer, Inc, the City's previous actuarial consultant, has prepared the 1994 annual valuation information requested by The Wyatt Company. CONCLUSIONS/NEXT STEPS: Don Mazanec of Mercer will review it, and it should be sent to Russ Proctor of Wyatt next week. Using that data, Russ will attempt to duplicate the report Mercer provided earlier this year. 6. 3RD QUARTER INVESTMENT REPORT - PARTIAL MAIN POINTS: Alan distributed the graphs for the 3rd Quarter Investment Report which reflected a stock market rebound. The bond portfolio recorded a 6.90% rate of return as of September 30th and the mutual fund equities recorded a return of 6.35%. CONCLUSIONS/NEXT STEPS: The narrative portion of the report will be avail- able in advance of the December meeting. Investments will continue to focus on short-term returns at least into the 1st quarter of 1995. Next year, the Committee will consider increasing the portion of the portfolio invested in equities. Copies of the complete report will be available from Sue, -6788. 7. 1995 DRAFT WORK PLAN MAIN POINTS: Jerry distributed a draft of the 1995 GERC Work Plan, which was discussed and revised. The final 1995 Work Plan for the GEneral Employees Retirement Committee is attached to these minutes. CONCLUSIONS/NEXT STEPS: Jerry will submit the 1995 Work Plan to the City Clerk's Office by the December 1 deadline. -2- 0 8. SEMIMARS/TRAIMIMG FOR COMMITTEE MEMBERS MAIN POINTS: Alan received information on an employee benefits conference in San Diego in March. Russ mentioned a seminar his firm is conducting in Denver regarding trends in retirement and human resources fields. CONCLUSIONS/NEXT STEPS: Alan will bring the conference information to the next meeting. Russ will bring invitations to the seminar for the members. The Committee will also explore having the Wyatt Company seminar presented in Fort Collins to the Committee and City staff members who deal with retirement and human resource issues. 9. MEETING DATES CHANGED/VALUATION MEETING MAIN POINTS: Schedule conflicts made it necessary to move the December and January meetings. A meeting between Russ and City staff who work with the valuation report was also re -scheduled. CONCLUSIONS/NEXT STEPS• The December and January meetings will be: 1. Thursday, December 8th, 1:15 p.m. in the 2nd Floor Conference Room 2. Thursday, January 12, 1995, 1:15 p.m., 2nd Floor Conference Room The valuation meeting will be at 10:30 a.m. on Thursday, December 8, in the 2nd Floor Conference Room. This meeting is open to members and the public, as are all regular GERC meetings. AGENDA 8 SCHEDULE FOR NEXT MEETING The next meeting will be December 8th at 1:15 p.m. in the 2nd Floor Conference Room of City Hall West. The agenda will include: 1. Plan Member/Citizen Comments 2. Final Investment Report - 3rd Quarter, 1994 3. Mercer/Wyatt Transition 4. Update on "Early Out" Task Force Study 5. Update on MPP/457 Education/Selection Process 6. Report on Valuation Meeting ADJOURNMENT The meeting was adjourned at 3:05 p.m. FUTURE MEETING SCHEDULE: The General Employees Retirement Committee meetings are normally held at 1:15 p.m. on the 1st Thursday of each month in the 2nd Floor Conference Room, City -3- Hall West. PLEASE NOTE DATE CHANGES THE TIME REMAINS 1:15 P.M. A special process will be Thursday, December Conference Room. THURSDAY, DECEMBER 8, 1994 THURSDAY, FEBRUARY 2, 1995 THURSDAY, APRIL 6, 1995 THURSDAY, JUNE 1, 1995 FOR DECEMBER, 1994 AND JANUARY, 1995. meeting to review the actuarial report 8th at 10:30 a.m. in the 2nd Floor IEZ THURSDAY, JANUARY 12, 1995 THURSDAY, MARCH 2, 1995 THURSDAY, MAY 4, 1995 THURSDAY, JULY 6, 1995 GENERAL EMPLOYEES RETIREMENT COMMITTEE 1995 MEETING SCHEDULE & WORK PLAN The regular meetings of the General Employees Retirement Committee (GERC) are normally scheduled for the first Thursday of every month in the 2nd Floor Conference Room of City Hall West at 1:15 p.m. Please Note: The January meeting will be the 2nd Thursday, January 12th at the regular time and place. January 12 April 6 July 6 October 5 February 2 May 4 August 3 November 2 March 2 June 1 September 7 December 7 1995 PROPOSED GERC DISCUSSION/ACTION ITEMS AND ISSUES - Transition to new Actuarial Consultant - Support for 457/Money Purchase plan (MPP) selection and implementation - Prepare 1994 GERC Annual Report prior to the January 31 deadline, including documentation of changes to the GER Plan and for its members which were implemented in recent years. - Explore revising/improving annual actuarial reporting document - Quarterly investment reports - Method to report blended yields for Bonds and Equities on GERP investments - Review percentage of investments in equities - Distribution of Personal Retirement Benefit Reports to GERP Members (April) - Review of annual actuarial valuation report (May) - Monitor and support potential bid/request for proposal (RFP) for the management of 457 and MPP plans. - Communicate options for employees to put away additional dollars for early retirement - Explore options for medical insurance for retirees. - Monitor "Early -Out" Task Force study - GERP/Workers Compensation/Disability/Medical Insurance proposal to control costs to the Executive Lead Team - Possible seminars or workshops to increase GERC Members' knowledge of their roles and responsibilities - Election of Officers and Review of GERC Standing Rules (September) - Policy on requests for cash advances on retirement payments - Pursue meeting the GFOA award standards for pension plans, including standards of practice, investment guidelines, and fiduciary issues . - Revisit (during 4th Quarter) the "Rule of 80" in relation to employee interest and feasibility - Prepare 1996 GERC Work Plan/Meeting Schedule prior to the December 1 deadline