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HomeMy WebLinkAboutRetirement Committee - Minutes - 06/02/1994FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE JUNE 2, 1994 MEETING MINUTES COUNCIL LIAISON: Ann Azari, Mayor COMMITTEE MEMBERS PRESENT:. Jerry P. Brown Dennis Sumner Dave Meyer Alan Krcmarik (Member & Staff Support) ABSENT: Jackie Davis OTHERS PRESENT: Dave Agee, Staff Pension Oversight Committee Sue Wilcox (Staff Support - Secretary) Don Mazanec of William M. Mercer, Inc. the City's actuarial firm. Sherrie Temple, (Staff Support - Investments) CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:20 p.m. in the 2nd Floor Conference Room of City Hall West on June 2, 1994. APPROVAL OF MINUTES: Dave Meyer moved and Jerry Brown seconded a motion to approve the minutes of the May 5, 1994 meeting. The motion. passed unanimously. DISCUSSION TOPICS: 1. MEMBER COMMENTS: Members reported receiving similar comments from two unclassified members of the GERP regarding the wording of the amended April 7, 1994 minutes. They felt it was not clear that the discussion clarifying the vesting status of former classified members of the Plan who had changed to non -classified status prior to January 1, 1994, applied only to non- classified employees who had left the Plan. The members felt that although the discussion under MAIN POINTS could have been more explicit, the motion specifically addresses the employees' concern. The consensus was that no further action was needed. 2. JAD COMMITTEE REPORT MAIN POINTS: Jerry Brown was not able to attend the JAD Committee's review of the Wyatt Company's work, but his opinion was that the Wyatt Company had done a good job, met the goals that were set, and produced a readable report. He felt that on a scale of one to five, with five being the best, that the Wyatt Company had earned a four or better. He expressed concern that since the Pension Oversight Committee (POC) has not met, the next step(s) are unknown. Alan noted that the Wyatt Company's work is tentatively scheduled for discussion at the June 28th Council Worksession. Since the Pension Oversight Committee (POC) has not yet met to discuss Wyatt's work, this schedule will -1- likely be delayed. Members noted that the changes proposed by the Wyatt report do not come under the charge of the GERC. However, the general feeling was that the "457 VS MPP" option as proposed by Wyatt would be a well -received change by employees. Further, the GERC would like to see the POC make progress on considering the change. CONCLUSIONS/NEXT STEPS: Alan will take the message to the Pension Oversight Committee that the GERC would like to see a time frame for future action and encourage timely progress on this issue. 3. FIRST QUARTER INVESTMENT REPORT MAIN POINTS: Sherrie Temple, Sales Tax Auditor, presented the Investment Report in Bob Eichem's absence. She noted that investment returns are down, reflecting a sizable drop in the stock market during the first three months of 1994. She noted that much of that initial loss has been recovered as the stock market continues to recover. She also repeated Bob's frequent admonition that investments are to be looked at over the long term, and will contain peaks and valleys. The up -side of the down cycle is that.because of dollar averaging, the Plan can purchase more shares for its money. There has been some question about blending the investment return information for both bonds and mutual funds, but Sherrie indicated that eventually both types of investments will be tracked on the same software system, which will make blending the two much easier. She felt by the end of the year this should be possible. CONCLUSION/NEXT STEPS: This is a draft report and Bob Eichem will have an opportunity to review it before it is finalized. Based on the assumption that this draft would be approved by Bob, Jerry Brown moved that the draft report be accepted and Dave Meyer seconded the motion, which was approved unanimously. 4. BENEFICIARY DESIGNATION FORM MAIN POINTS: Don Mazanec provided a draft of a form to be used by unmarried employees (or those wishing to designate someone other than their spouse) as their beneficiary for the GER Plan. The form would be used for all new employees who are covered by the Plan. Changes could be made at any time and employees would be able to review and/or change their designation during the cafeteria benefits signup period each year. It may be possible to combine this form with one used for the deferred compensation plans. CONCLUSIONS/NEXT STEPS: Sue will send a copy of the form to Mary Crumbaker with the Committee's comments, as Mary and possibly Employee Development will need to review it before the Committee can approve it. S. INTERPRETATION OF COMMITTEE INTENT - DEATH BENEFIT MAIN POINTS: From time to time, the Committee has felt it define the intent of Committee actions so that future Committee have that information. Sue and Dennis prepared a draft for the -2- advisable to members might Committee to review, explaining the intent of the Committee in expanding the death benefit to all employees. There were some suggested changes. CONCLUSIONS/NEXT STEPS: Sue will make the suggested changes and distribute a final draft to the Committee members for future reference and inclusion with other such information in their GERP ring binders. 6. RESCHEDULE JULY MEETING MAIN POINTS: Several people had conflicts with the July 7th meeting, when we expect to have a new member in attendance. CONCLUSIONS/NEXT STEPS: The July meeting was moved to Thursday, July 14th at 1:15 p.m. in the Second Floor Conference Room. Sue will confirm this with Jackie Davis and see that the new member designate is notified of the change. (The designate's name will be available when the agenda for the June 21st City Council meeting is distributed.) Sue will arrange a thank you luncheon for Jackie on the 14th also. 7. RFP FOR ACTUARIAL SERVICES MAIN POINTS: At this point, Don Mazanec left the meeting. Dave Agee reviewed the member's comments he received about the draft RFP document and the changes he had made. The intent is still to distribute the bid documents this month with interviews conducted in August. The interview committee will consist of Dave Meyer from the GERC, Dave Agee, and representatives from Purchasing, Employee Development, and Accounting. CONCLUSIONS/NEXT STEPS: Dave will finalize the RFP and work with Purchasing to complete the bid process. ITEMS FOR FUTURE DISCUSSION 1. Pension Investment Seminar / Public Benefit Plans Workshop 2. GERP / Workers Comp / Disability Proposal to E-Team 3. Method to Report Blended Yields (Bonds & Equities) on Investments (November?) 4. Review Standing Rules - August AGENDA & SCHEDULE FOR NEXT MEETING The next meeting will be July 14 at 1:15 p.m. in the Second Floor Conference Room. The agenda will include: 1. Plan Member Comments 2. JAD Committee & POC Updates -3- 3. 1993 Actuarial Report 4. Actuary Services RFP Status Report 5. Finalize Form for Designating Beneficiary ADJOURNMENT The meeting was adjourned at 3:05 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. Any change from that will be noted. The July meeting has been moved to July 14th at 1:15 p.m. in the 2nd Floor Conference Room of City Hall West. **THURSDAY, JULY 14, 1994** THURSDAY, SEPTEMBER 1, 1994 THURSDAY, NOVEMBER 3, 1994 -4- THURSDAY, AUGUST 4, 1994 THURSDAY, OCTOBER 6, 1994 THURSDAY, DECEMBER 1, 1994