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Home My WebLink AboutRetirement Committee - Minutes - 08/03/2000Admirr&alive Services • // -L?r Finance Administration City of Fort Collins FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE AUGUST 3, 2000, MEETING MINUTES Approved, As Amended, on September 7, 2000 COUNCIL LIAISON: Mayor Ray Martinez COMMITTEE MEMBERS PRESENT: Terry Van Cleave, 221-6321 ABSENT: Dottie Nazarenus, 204-4429 Alan Krcmarik, 221-6788 Bill Switzer, 221-6713 Susan Lehman, 221-6813 Michele Hays -Johnson, 416-2158 OTHERS PRESENT: Julie Depperman (Staff Support — Investments) Greg Tempel (Staff Support — Legal) Deb Weedman (Staff Support — Human Resources) Nancy Wagner & Gary Heaston, Milliman & Robertson(the Plan's actuary) Sue Wilcox (Staff Support — Clerical) CALL TO ORDER: Chair Susan Lehman called the meeting to order at 1:25 PM. ITEMS OF NOTE: Susan reported Dottie Nazarenus had called to tell her that another commitment would prevent her from attending this meeting. Greg Tempel advised that the new policy on boards and commissions attendance requires members to notify the chairperson or staff liaison of anticipated absence in writing or email prior to the meeting. Subsequent Note: Bill Switzer apologized for missing the August meeting due to a work project. Susan provided a brochure for an October conference in Chicago on pension issues. The Committee discussed that program compared with a Colorado Public Pension Conference to be held in Breckenridge on September 13-15. Deb Weedman and Greg are planning to attend the Colorado conference. Susan also expressed interest. Deb will provide Susan with flyers for the program, which Susan will circulate among the members. Nancy Wagner said that she receives and would share information on education opportunities provided by the International Foundation of Employee Benefit Plans. APPROVAL OF MINUTES: Alan Krcmarik distributed the draft minutes of the July 13, 2000, meeting. There were no changes suggested and Terry Van Cleave moved that the minutes be approved as distributed. Alan seconded the motion. The Committee approved the minutes unanimously (4-0). DISCUSSION TOPICS: 1. PLAN MEMBER COMMENTS: No comments. 300 LaPorte Avenue • PO. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 GERC Meeting Minutes August 3, 2000 Page 2 of 4 2. DISCUSSION OF RETIREMENT PHILOSOPHY MAIN POINTS: The actuary, Milliman & Robertson, Inc., was provided with copies of the GERC Retirement Philosophy letter from Watson Wyatt. CONCLUSION AND NEXT STEPS: Gary Heaston and Nancy will come to the September meeting prepared to discuss the Retirement Philosophy. 3. DISCUSSION OF ACTUARIAL FIRM'S SCOPE OF WORK MAIN POINTS: Deb has prepared calculations for three terminated employees who will now have the option of taking a lump -sum distribution or leaving the funds in the Plan for a future benefit payment decision. One of the employees is anxious to receive a lump -sum distribution. Staff expressed interest in meeting with the actuaries to discuss the forms, processes, etc. CONCLUSION AND NEXT STEPS: Staff support agreed to meet with the actuary after the meeting to review the preliminary calculations, samples of the letters and forms used previously, and to discuss the process currently in use. The actuary commended Greg on the readability of the draft restatement of the Plan. The actuary representatives will discuss the actuarial assumptions at the September meeting. The Committee will schedule the action on the actuarial assumptions for the October meeting. 4. FULL-TIME EMPLOYEE — PART-TIME EMPLOYEE EQUITY EDUCATION PROGRAM MAIN POINTS: Susan reported that 22 members replied to the full-time - part-time issue information packets distributed to members with their paychecks on July 28. A few expressed appreciation for the Committee's effort to bring the information to the members. The deadline for responding is August 31. CONCLUSION AND NEXT STEPS: The Committee will discuss Plan member replies at the September 7 meeting. Plan members who have only discussed their concerns with a GERC member will be asked to complete the form and return it to Finance Administration, so all issues can be reviewed at the same time. 5. PROCEDURES TO CALCULATE BENEFIT CALCULATIONS MAIN POINTS: Deb described the process of creating an Excel database of salary history for active Plan members using year-end payroll printouts. She explained that Human Resources personnel are now entering salary data into a separate file for deferred vested GERP members. Also, staff met with the payroll technician to determine how year 2000 salary data will be obtained from the new payroll system. CONCLUSION AND NEXT STEPS: Deb will review the data that has been entered for the new database to make sure that all classification changes are included. She will calculate salaries for those needing employment history for a partial year. Staff will continue creating and testing a report that will extract the necessary year-end information from the JD Edwards payroll system. GERC Meeting august 3, 2000 • page 3 of 4 • NGE FOR DECEASED PLAN MEMBER TION CHA ned by the parents and 6, BENEFICIARY DESIGNA reement signed Greg reported that he had received of rr 's Plan benefit for his son. MAIN POINTS: to ee who has a deferred vested retirement benefit. e th former spouse of a deceased emp Y as not y Iculatio i needs to be done because it has been agreement creates a trust to receive the deceased employee Although the trust ee et been deters fined, this will allow the Plan to disburse the ea benefit payment. final benefit calculation was made. a ment. Staff will 1the oel9 determine if a more than g0 days since AND NEXT Whitman Trust and sent to their attorney. CONCLUS ION STEPSthe Gunnar a : Susan moved the Financial Officer issue a death benefit which was approved unanimously (4-0). check based on the new calculation to Alan seconded the motion, 7. SECOND QUARTER & MONTHLY INVESTMENT ed the totamark UPDATE value of cash and investments for ear, Julie report volatile in the first six MAIN POINTS: At midyear, h the fixed income market was very of the benchmark 5- the Plan was $35,277,003. Although points higher than the average y the portfolio ended four basis p o compared with the Standard & months,period. year Treasury Notvrhich fell domestic.0% the same p declined 0.08 /o Poor's 500 Index, the second quarter, us Emerging Leaders, and the Meridian the Plan continued to sell out of some funds that had no me During an buying Janus Enterprise, Dreyf funds, will help balance the mix of expectations, and beg classified as small cap Value Funds. The latter o°tfolio.s mutual funds held in the p ng direct the investments, but after strategy, and position, the representativw Alan noted that an investment firm had inquired about ate well and' provided no further suggestions. some discussion of the current procedures, ledged that the portfolio seemed to be doing quite Report through the GE website. The website Members may access the year-end Investment Rep report or address is shown on the last page le se call Finance ese minutes. Administration at 221. if a more recent 56788 additional information is needed, p in for great portfolio; repositioning the mutual fund portfolio to reduceggains in larger in CONCLUSION AND NEXT STEPS: Strategies for the third quarter include: shopp values for the fixed income p the mix of holdings to take advantage of g under -performing funds; re -balancing categories of funds that are under -represented the regular arn position funds; and purchasing, funds for the the current mix of funds, namey small -cap and blended funds. Julie will present the reg monthly report for August at the next meeting. 8, SCHEDULE FOR NEXT REGULAR MEETING at 1:15 PM in the Council The next regular meeting will y HallrWest. The tentative age0nda includes: Information Center (CIC) 1 Citizen Participation and Plan n3, 2000, mnutesember s 2. Consider approving the August 3 Discussion of Retirement Philosophy 4. 5. 6. 7. 8. ADJOURNMENT: GERC Meeting Minutes August3,2000 Continued Discussion with Page 4 of 4 A. Discussion of Actuarial Assumptioal ns °n the Scope of B. Plan Restatement GERC Work Full-time - Part-time Concerns from the Education Program Benefit Calculation Procedures Monthly Investment Report Other Business Susan adjourned the meeting at 2:17 PM GERC AND GERP WEB PAGE ADDRESS: http://WWW.ci fnrf-^. li;.._ -- .--- FUTURE MEETING SCHEDULE: The Committee normally meets at 1:15 p.m on the first of each month Information Center, City Hall West. The next scheduled meetingyy Will be Thursday September 7, in the Council 2000, at 1:15 PM. The Committee will hold remaining meetings for 2000 as shown below: SD 4X�a14AP.0 � THURSDAY, -4 3rZGGA SEPTEMBER7, 000 THURSDAY, OCTOBER 5, 2000 THURSDAY, NOVEMBER 2, 2000 THURSDAY, DECEMBER 7, 2000