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Home My WebLink AboutRetirement Committee - Minutes - 03/10/1994• FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE MARCH 10, 1994 MEETING MINUTES COUNCIL LIAISON: Ann Azari, Mayor COMMITTEE MEMBERS PRESENT: ABSENT: Jerry P. Brown Jackie Davis Dennis Sumner Dave Meyer Alan Krcmarik (Member & Staff Support) OTHERS PRESENT: Sue Wilcox (Staff Support - Secretary) Don Mazanec, William M. Mercer Inc, City's actuarial firm Laurie Harvey, Employee Development Bob Eichem, Investment Officer, Treasury Division Jan Meisel, Plan Member, CPES CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:15 p.m. in the 2nd Floor Conference Room of City Hall West on March 10, 1994. APPROVAL OF MINUTES: Jerry P. Brown moved that the minutes of the February 3, 1994 meeting be approved as presented. Dave Meyer seconded the motion, which passed unanimously. Dave Meyer moved that the minutes of the February 17, 1994 meeting be approved as distributed. Jerry P. Brown seconded the motion, which passed unanimously. REVIEW OF DISCUSSION TOPICS: The review of the GERC's Standing Rules will be deferred to the Mav 5th meetina. DISCUSSION TOPICS: 1. MEMBER COMMENTS: Bob Eichem commented that he had heard good comments on the employee open house meetings held by the Wyatt Company. Jan Meisel expressed her continuing interest in the GERC activities. 2. JAD COMMITTEE REPORT MAIN POINTS: Jerry P. Brown reported that about 100 people attended the open houses presented by Jeff Kraft of the Wyatt Company. Dennis noted that there may have been insufficient notification of some employees, and suggestions were made for additional ways to alert employees to the April 12, 13, and 14 group meetings (note change in dates from previous information). Jerry will forward these to Ann Turnquist. CONCLUSIONS/NEXT STEPS: Jerry Brown reported that the JAD Committee is meeting with the Wyatt Company after this meeting and he will present to them also the concerns about adequate notification for the group meetings. The times and locations -1- times are set for the April group meetings and are listed at the end of these minutes., inutes Jerry will report back to the GERC on the progress of the Wyatt Company. 3. ACTUARY RPP STATUS REPORT MAIN POINTS: Sue distributed a schedule of events prepared by Dave Agee and Jackie Davis outlining the process for soliciting Requests for Proposals (RFP) for actuarial support services to the GERC: May 1 Draft RFP June 1 Bids out for RFP July 1 Bids received July 15 Interview process August 1 Selection of consultant Dave and Jackie had expressed their interest in having a firm chosen early enough in 1994 to allow the company representatives to attend GER Committee meetings before they actually assume their advisory role. CONCLUSION/NEXT STEPS: The Committee recognizes that this is a tentative schedule and may change as a result of the findings of the JAD-Wyatt Company report. 4. EQUITY CONCERNS WITH GER PLAN MAIN POINTS: The GER Plan, as originally implemented, included no provision for a death benefit. This was remedied when a death benefit was added which could only be paid to the spouse if the employee was at least 55 years old and partially vested. The spouse's benefit was 50% of what the employee's retirement benefit would have been if the employee was retired and was payable for the spouse's lifetime. Later, the definition of beneficiary was expanded beyond that of spouse to provide some equity for unmarried employees. The death, benefit to the unmarried employee's beneficiary was limited to 60 months (5 years) of the employee's death benefit at time of death. Recently the requirement that the employee had to be age 55 before a death benefit could be paid was removed, but this inadvertently resulted in other possible inequities depending on the employee's age at the time of death. Don Mazanec presented a draft of a proposed change that would base all death benefit calculations on what the employee's retirement benefit would have been at age 55 (the earliest the employee could have retired) or actual age at time of death, if employee is 65 or older. The spouse's benefit will still be paid for life, but the benefit for a beneficiary would be calculated based on life expectancy for the employee, as determined by actuarial tables used by the GERP. -2- The GERC realizes that while it will never be possible to make all benefits equal for all sets of circumstances, this proposed change is equitable over a large span of variables. The members felt some concrete examples of how this would work in various scenarios are needed to clarify how the change would work. Dennis asked for clarification of the part that vesting plays in death benefits. Don explained that vesting is not considered at all in death benefits. A living employee has the option to stay employed by the City long enough to earn full vesting. An employee who dies has had his ability to make that decision taken away, and therefore it is assumed that s/he would have remained with the City long enough to be fully vested. Don noted this is the normal practice for resolving vesting issues related to an employee's death. Also, since the death benefit is still based on length of service, the cost impact of full vesting for a deceased employee is minor. The benefit for a City employee who left the GER Plan, but is still a City employee, will be determined by the Plan in effect when s/he left the Plan. Any Plan revisions adopted since that time have no effect on employees who are no longer members of the Plan. CONCLUSIONS/NEXT STEPS: The Committee feels this proposed change (to base all death benefit calculations on what the employee's retirement benefit would have been at age 55 or actual age if employee was 65 or older) is a technical correction to accomplish what it set out to do when the original age limitation was eliminated: to make the death benefit equitable among employees. A draft of the proposed change will be sent to Mary Crumbaker for her review. Don will also send additional wording related to vested Plan members who are still City employees. The Committee will consider these items for action at the April 7th meeting and attempt to place it before City Council no later than May 3rd to be effective retroactively to January 1, 1994. A plan to educate employees about the changes will also be created and a method for designating a beneficiary will be discussed at the April 7, 1994 meeting. 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. Settlements with retired employees with low monthly benefit payments. -3- 4. Method to Report Blended Yields (Bonds & Equities) on Investments 5. GERC Standing Rules - Scheduled for May 5 meeting. AGENDA & SCHEDULE FOR NEST MEETING The next meeting will be April 7 at 1:15 p.m. in the Employee Development Conference Room. The agenda will include: 1. Plan member comments 2. JAD Update/Wyatt Co. Report 3. Death Benefit Changes 4. Designating Beneficiaries (Death Before Age 55) ADJOURNMENT The meeting was adjourned at 3:42 p.m. MEETING SCHEDULE: The next meeting will be April 7th at 1:15 p.m. at Employee Development's Conference Room at 200 W. Mountain Ave. 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. THURSDAY, MAY 5, 1994 THURSDAY, JULY 7, 1994 THURSDAY, SEPTEMBER 1, 1994 THURSDAY, NOVEMBER 3, 1994 THURSDAY, JUNE 2, 1994 THURSDAY, AUGUST 4, 1994 THURSDAY, OCTOBER 6, 1994 THURSDAY, DECEMBER 1, 1994 The schedule for the EMPLOYEE GROUP MEETINGS IS: TUESDAY, APRIL 12 7 - 9 A.M. LIGHT & POWER TRAINING ROOM 10-12 NOON COUNCIL INFORMATION CENTER 3 - 5 P.M. 281 N COLLEGE, MAIN CONF ROOM WEDNESDAY, APRIL 13 10-12 NOON LIGHT & POWER TRAINING ROOM 1 - 3 P.M. COUNCIL INFORMATION CENTER THURSDAY, APRIL 14 10-12 NOON 281 N COLLEGE, MAIN CONF ROOM -4- CTR0480 FI#RT COLLINS MUNICIPAL COUR CIAL REPORT AND CASE SUM Y FROM O1/29/1994 TO 02/25/199 PAGE 1 13-MAR-1994 Fines Paid (not on account) $23382.00 Plus: Payments made on Account +. $8746.00 (Total Fines Collected $32128.00 Less: Fines Paid On Parking Tickets - $175.00 '!Total Municipal Court Fine Revenues Collected $31953.00 Costs and Fees Collected: Appeal (Transcript) Fee Continuance Cost Copy Cost Default Judgment Fee State Amount: $210.00 Deferral Cost Did Not Appear Fee Interest Amount to be Paid Interstate Compact Fee Jury Fee Outstanding Judgment/Warrant Fee State Amount: $75.00 Short Check Fee Warrant Fee Witness Fee Total Costs and Fees Collected City Amount: City Amount: Total Municipal Court Revenues Collected CASE SUMMARY ANIMAL BICYCLE FAILURE TO APPEAR FAILURE TO PAY FINES/COSTS NON -TRAFFIC MISDEMEANOR PARKING TRAFFIC INFRACTION TRAFFIC MISDEMEANOR Total Cases $1.50 $20.00 $9.00 $210.00 $3765.00 $664.00 $0.00 $0.00 $0.00 $75.00 $45.00 $389.00 $35.00 65 1 16 11 118 19 646 53 929 e $5213 . 50 $37166.50 Kat een M. A17in Municipal Judge