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HomeMy WebLinkAboutRetirement Committee - Minutes - 09/08/1994FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE SEPTEMBER 8, 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) Laurie Harvey, Employee Development Don Mazanec of William M. Mercer, Inc. the City's actuarial firm. CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:20 p.m. in the Council Information Center of City Hall West on September 8, 1994. APPROVAL OF MINUTES: Dave Meyer moved and Jerry P. Brown seconded a motion to approve the minutes of the August meeting as written. The minutes were approved unanimously. ITEMS OF NOTE: New member Jacci Peterson asked for and received an explanation of item N2 under "Items for Future Discussion". This involves researching a possible connection between reduced early retirement benefits, resulting in employees staying on the job longer and a possible relation to an increased incidence of higher workers compensation claims for older employees. This was referred to the Executive Lead Team (EL Team) for consideration. Laurie Harvey noted that interviews are being conducted for an Assistant City Attorney who will concentrate on personnel -related issues. October 1 is the target date to have someone on board. REVIEW OF DISCUSSION TOPICS: Dave Meyer suggested that agenda item #12 "Meeting with Recommended Actuary" be deleted because the Committee interviewing the three firms in the final running for actuarial consultant to the GER Committee, had not had time to notify the firms involved in the interviews of their decision. He expected that the GER Committee would be notified on Friday or Monday of the firm chosen. See NOTE at end of minutes. Alan Krcmarik also suggested deleting item N3 "Investment Report - 2nd Quarter" on the agenda, as Treasury Administration is changing the software it uses for tracking investments. Since that has not been completed, the quarterly report will not be available until the next meeting. He did report that mutual fund investments were taking an upward turn, which is good news. It was suggested that the Rule of 80 and Early Retirement be added to the agenda. -1- DISCUSSION TOPICS: 1. MEMBER COMMENTS: There were no member comments. 2. JAD COMMITTEE REPORT MAIN POINTS: Jerry P. Brown reported that there had been no meeting of the JAD (Jerry, Ann Turnquist, Dave Agee) Committee since the Wyatt Report was issued in April. He suggested that the item be deleted from future agendas or be retitled "changing of the 457 deferred compensation plan to the 401(a) plan", as Jerry felt the work of the Committee was essentially done. Laurie Harvey suggested that these minutes clarify that Employee Development (recently renamed Human Resources) has in fact been moving ahead with the change from the 457 Plan to a 401 Plan. Laurie and Ann Turnquist met with Chuck King of ICMA [International City Managers Association, the administrator of the City's 457 and 401(a) plans]. They reviewed the necessary legal documents and are researching various questions. Special presentations will be made to educate employees during the Cafeteria Benefits selection period (but separate from the regular benefits presentations); then employees will vote, with implementation in January, 1995 if approved. The schedule for implementation is: CHANGE FROM 457 PLAN TO 401(A) PLAN September 16 FortNotes article announcing change to offer 401(a) plan to classified employees. September 19-30 Draft of comparison guide, election form, and employee education presentation materials prepared by Wyatt Co and reviewed by City staff. October 3 Final draft of materials presented to City for approval. October 17-18 Education materials printed October 20 Train the trainer session for employee education process. November l Information packets sent to employees. November 7-21 Conduct employee meetings to discuss options, pros/cons, etc. December 12 Election forms due to Human Resources Department January 1, 1995 Change becomes effective for those electing 401(a) plan (assuming that a sufficient number of employees, needed to meet compliance standards, elect to make the change). Alan and Laurie had also talked with Purchasing about going to bid for an administrator for the 457 and 401(a) plans. This is very desirable, but can be accomplished in 1995, after the proposed change is implemented. 1P4 w CONCLUSIONS/NEXT STEPS: The members fel proposed schedule were a great step forward change could be effected in 1995. 3. BENEFICIARY DESIGNATION PROCESS t that this clarification and and they were pleased that the MAIN POINTS: The memo from the Committee and the GERP beneficiary designation forms were distributed with the Personal Retirement Benefits Report forms to all employees in August. Laurie reported that many forms have been returned and they will be checking them against a list of employees to determine which are missing. Sue, Laurie, and Don Mazanec have been discussing employees who have left City employment or who no longer actively participate in the Plan, but who are eligible for a death benefit and should complete a beneficiary designation form. CONCLUSION/NEXT STEPS: Sue will send these individuals a letter and form to be completed and returned. 4. RULE OF 80 AND EARLY RETIREMENT MAIN POINTS: Dennis reminded members of the movement being explored by the City to offer an early retirement package to older, long-time employees. A similar program was offered in the mid-1980's, spurred by a budget crunch, as a way to save money by reorganizing work areas and replacing higher -paid workers with lower -salaried workers. The group is working on a multi -page proposal and researching questions and details. If an early retirement plan is implemented, it may function much like a "Rule of 80" and result in a number of early retirements. Don advised that if a large number of employees request early retirement benefits, it could have an impact on the GER Plan. In light of the number of people who have contacted the GERC members about the Rule of 80, Dave Meyer suggested that the GERC take a look at the Rule of 80 after the vote on the 457 conversion to 401(a) and after any early retirement action is taken. CONCLUSIONS/NEXT STEPS: The GER Committee agreed to add the Rule of 80 issue to the "Items for Future Discussion". 5. ELECTION OF OFFICERS MAIN POINTS: Dennis explained that he was taking himself out of the running for chairperson, as he has just one year remaining on his term and he wanted to give another person an opportunity to lead the Committee. Dave Meyer nominated Jerry P. Brown for chairperson and Alan Krcmarik moved that the nominations be closed. The vote was unanimous in favor of Jerry as chairperson. Jerry nominated Dave Meyer as vice chairperson and Alan moved that the nominations be closed. The vote was unanimous in favor of Dave Meyer as vice -chairperson. Dennis agreed to continue as chairperson through the end of this meeting. CONCLUSIONS/NEXT STEPS: Sue will notify Rita Harris in the City Clerk's Office of the change in officers. Dennis will be responsible for the 1994 -3- Year-end Report and Jerry will prepare the Committee's Work Plan for 1995, with the members' assistance. 6. REVISION OF STANDING RULES MAIN POINTS: Copies of the original Standing Rules prepared in January, 1992 were distributed and revised. The only major changes were in the dates that the actuarial valuation and the Personal Benefit Reports are issued to be more in keeping with current practice. CONCLUSIONSMEXT STEPS: The secretary will prepare copies of the Standing Rules for distribution. The Standing Rules will be reviewed and revised as necessary annually along with the election of officers. 7. PENSION INVESTMENT SEMINARS MAIN POINTS: Alan presented information on two pension seminars to be held in the next 4 months. Although they would be beneficial, the members did not feel that they would be available at those times. CONCLUSIONS/NEXT STEPS: The information will be kept available in case a member or members found that they could attend. 8. OCTOBER MEETING DATE CHANGE MAIN POINTS: Because of a conflict with the regularly -scheduled October meeting date, various alternative dates were discussed. CONCLUSIONS/NEXT STEPS: The meeting was re -scheduled for Monday, October loth at 1:15 p.m. in the 2nd Floor Conference Room. 1tOTE: The Wyatt Company was chosen as the actuarial consultant for the General Employees Retirement Plan. Russell Proctor will represent the firm at future meetings, beginning in October. ITEMS FOR FUTURE DISCUSSION 1. Possible seminars or workshops to increase GER Committee members' knowledge of their roles and responsibilities. 2. GERP / Workers Comp / Disability Proposal to E-Team 3. Method to Report Blended Yields (Bonds & Equities) on Investments 4. Rule of 80 [after action taken on Early Retirement and 457 to 401(a) conversion]. -4- AGENDA i SCHEDULE FOR NEXT MEETING The next meeting HAS BEEN CHANGED to Monday, October 10th at 1:15 p.m. in the 2nd Floor Conference Room of City Hall West. The agenda will include: 1. Plan Member Comments 2. Meeting with Selected Actuary 3. Update and review of materials for 457/401(a) educational presentations. 4. Investment Report - 2nd Quarter 5. Government Finance Officers Association award program for "well -managed and high -achieving" pension plans. FT'ZSI?11 t"; :I4I I The meeting was adjourned at 3:37 p.m. 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 Hall West. PLEASE NOTE DATE CHANGE FOR OCTOBER. THE TIME REMAINS 1:15 P.M. MONDAY, OCTOBER 10, 1994 THURSDAY, NOVEMBER 3, 1994 THURSDAY, JANUARY 5, 1995 THURSDAY, MARCH 2, 1995 &Z THURSDAY, DECEMBER 1, 1994 THURSDAY, FEBRUARY 2, 1995 THURSDAY, APRIL 6, 1995