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Home My WebLink AboutRetirement Committee - Minutes - 09/05/1996Generai Employees Retirement Plan COUNCIL LIAISON: FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE SEPTEMBER 5, 1996 MEETING MINUTES Mayor Ann Azari COMMITTEE MEMBERS PRESENT: Jerry P. Brown, 221-6350(w), Jim Hume, 221-6776 Alan Krcmarik, Member/Staff OTHERS PRESENT: Sue Wilcox (Staff Support - Russ Proctor - Watson Wyatt Bob Eichem (Staff Support - Laurie Harvey (Staff Support ABSENT: 226-0800(h) (two positions vacant) Support Secretary) Worldwide, the City's actuarial firm Treasury Administrator) - Human Resources) CALL TO ORDER: Chairperson Jerry P. Brown called the regular meeting to order at 1:25 p.m. in the Council Information Center of City Hall West. ITEMS OF NOTE: 1) There are seven applications for the two vacant GERC seats, including three applicants from the last appointment. Two City Council members will conduct interviews next week and the final choices presented for Council approval on October 1st. The new members should be present at the next GERC meeting on October 3rd. 2) Jerry attended a meeting with Ann Azari and Deputy City Manager Darin Atteberry at which Mayor Azari expressed interest in potentially having the General Employees Retirement Committee involved in other retirement issues besides the GER Plan. To this end, Jerry was asked to meeting with the Mayor and City Manager on September loth. He will keep the members apprised of events. 3) The GERC will not renew a subscription to the newsletter "Employee Benefits for Non -Profits", as the information did not justify the $145 cost. APPROVAL OF MINUTES: Alan Krcmarik moved that the minutes of the August 1, 1996 GERC meeting be approved as distributed. Jim Hume seconded the motion, which passed unanimously. DISCUSSION TOPICS: 1. GER PLAN MEMBER COMMENTS/CITIZEN PARTICIPATION: There were no member or citizen comments. 2. ELECTION OF GERC OFFICERS MAIN POINTS: The GERC Standing Rules state that officers will be elected each September. However, because of recent resignations from the GER Committee, there are only three current members until the October 3rd meeting. The members expressed the desire to wait until the new members are appointed in order to elect new officers. CONCLUSIONS/NEXT STEPS: Alan moved and Jim seconded his motion to move the -1- 300 LaPorte Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 GERC Minutes September 5, 1996 election of officers to the October 3rd meeting. The motion passed unanimously. 3. ANNUAL REVIEW OF GERC STANDING RULES MAIN POINTS: The GERC Standing Rules state that the Standing Rules will be reviewed each September. The three members expressed the desire to wait until the new members are appointed to review the Standing Rules. CONCLUSION/NEXT STEPS: Alan moved and Jim seconded the motion to move the review of the Standing Rules to the October 3rd meeting. The motion passed unanimously. 4. ANNUAL REVIEW OF ACTUARIAL CONSULTANT SERVICES MAIN POINTS: Russ distributed to GERC members and support staff a form for rating the actuarial services provided by Watson Wyatt Worldwide. The areas to be rated include: timeliness, understanding of the GER Plan, communicating costs, and explaining the implications of proposed plan changes, with space provided to add other rating characteristics. Additional copies were provided for former GERC members and staff support people not present. Clarifications: "timeliness" was defined as within 24 hours for accessibility and responsiveness; and Watson Wyatt Worldwide is to be rated, as opposed to individual representatives. The completed forms are to be mailed to meet 5. CREDIT FOR PART-TIME SERVICE ISSUE MAIN POINTS: Russ presented a handout showing the current plan compared with three alternative methods of calculating full-time and part-time benefits. (Extra copies were provided for the new members.) CONCLUSIONS/NEXT STEPS: Because this may be a significant issue, it was agreed to postpone further discussion until the new members are appointed. 6. SOCIAL SECURITY ARTICLE FOR FORTNOTES/BENEFITS NEWSLETTER MAIN POINTS: The article about the age at which individuals can retire and receive full Social Security benefits should appear in the FortNotes newsletter to be distributed with the September 13th paychecks. It should also appear in the Benefits and Wellness Newsletter in late September or October. CONCLUSIONS/NEXT STEPS: No further action is necessary. 7. •GENERAL EMPLOYEES RETIREMENT PLAN SUMMARY" BOOKLET MAIN POINTS: The "General Employees Retirement Plan Summary" booklet has -2- GERC Minutes September 5, 1996 received a final review by the sub -group of Laurie Harvey, Jacci Peterson, and Sue Wilcox and should be ready for printing in the next two weeks. CONCLUSION/NEXT STEPS: Jim Hume was asked to review the last draft, as he will be looking at it from the fresh perspective of a Plan member and newly -appointed Committee member. Laurie asked that copies be available for distribution as soon as possible. Open enrollment for benefits begins at the end of October, and she wants to avoid confusing retirement issues with other benefits. S. OTHER BUSINESS A. BUDGET REQUEST FOR COST -OF -LIVING ADJUSTMENT Jerry reminded members that the GERC's suggested budget item for a $721,145 cost -of -living adjustment (COLA) for current retirees had not been included in the 1997 budget process. He asked if there was interest in making a plea for a $120,000/year request for 6 years as an alternative. The lump -sum request would have brought all retirees up to the current cost of living. The smaller request (if granted) would keep the retirees from falling further behind. This method has the advantage of keeping City Council apprised yearly of the need to provide retirees with cost -of -living adjustments. CONCLUSIONS/NEXT STEPS: It was agreed that Jerry and Alan would draft a memo to City Council requesting the smaller appropriation each year. B. COULD PLAN BE CHANGED TO INCLUDE COST -OF -LIVING ADJUSTMENT? Jim asked if the GERC could include a built-in cost -of -living adjustment in the Plan? He also suggested allowing employees to "buy" cost of living adjustments during their last five years of employment. CONCLUSIONS/NEXT STEPS: Russ advised that the GERC will consider these kinds of options when it continues the development of its retirement philosophy. C. POSSIBLE MEETING TIME CHANGE Jerry noted that one potential member might be unable to meet on Thursdays. Jim also said he might have conflicts on Thursday because of advanced degree classes he is taking. CONCLUSION/NEXT STEPS: This topic will be added to the October 3rd agenda. D. CHANGE JANUARY MEETING Because the January meeting is the day after New Years, it was suggested it be moved to Thursday, January 9th. Laurie Harvey would have a conflict. CONCLUSION/NEXT STEPS: This will be discussed at the next meeting. E. PENSION SIMPLIFICATION LEGISLATION Russ advised that legislation is pending that could impact the City's 457 plan, limits on the amount of contributions, and defined benefit plans. Also included would be a waiver of the 30-day waiting period before a retiree can begin receiving retirement benefits. -3- GERC Minutes September 5, 1996 CONCLUSION/NEXT STEPS: Russ will keep the Committee advised of changes. F. GERC WEB SITE Jim said that the City has a Web site on the Internet. He felt that an information page could be beneficial for the GERC to use in educating members on basic investment information, changes in benefits, and basic GER Plan information. CONCLUSION/NEXT STEPS: Since Jim has training and experience in setting up Web sites, he agreed to work with Alan and Sue Wilcox to create a site for the GERC. AGENDA i SCHEDULE FOR NEXT MEETING The next meeting will be October 3rd at 1:15 p.m. in the Council Information Center (CIC) of City Hall West. The agenda will include: 1. Plan Member Comments/Citizen Participation 2. Discussion of Retirement Philosophy 3. Annual Review of GERC Standing Rules 4. Election of GERC Officers for 1996/97 5. Consider Scheduling Work Session on Fiduciary and other Responsibilities of GERC Members (International Foundation for Employee Benefit Plans) 6. Review Actuarial Consultant Services Survey Results 7. Consider Rescheduling January Meeting 8. Consider Changing Regular Meetings 9. Credit for (part-time) service issue ADJOURNMENT The meeting was adjourned at 2:18 p.m. FUTURE MEETING SCHEDULE: The General Employees Retirement Committee normally meets at 1:15 p.m. on the 1st Thursday of each month in the Council Information Center, City Hall West. THURSDAY, OCTOBER 3, 1996 THURSDAY, NOVEMBER 7, 1996 THURSDAY, DECEMBER 5, 1996 THURSDAY, JANUARY 2, 1997 THURSDAY, FEBRUARY 6, 1997 THURSDAY, MARCH 6, 1997 THURSDAY, APRIL 3, 1997 THURSDAY, MAY 1, 1997 THURSDAY, JUNE 5, 1997 -4-