Loading...
HomeMy WebLinkAboutRetirement Committee - Minutes - 01/04/1996FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE JANUARY 4, 1996 MEETING MINUTES COUNCIL LIAISON: Ann Azari, Mayor COMMITTEE MEMBERS PRESENT: ABSENT: Jerry P. Brown Jacci Peterson Gary Ellis Dave Meyer Alan Krcmarik, Member/Staff Support OTHERS PRESENT: Sue Wilcox (Staff Support - Secretary) Dave Agee (Staff Support - Controller) Bobbie Burnette (Staff Support - Assistant City Attorney) Laurie Harvey (Staff Support - Human Resources) Bob Eichem (Staff Support - Investments) John Lindsay, Tim Sagen of Light and Power Department CALL TO ORDER: Chairperson Jerry P. Brown called the meeting to order at 1:30 p.m. in the 2nd Floor Conference Room of City Hall West. AGENDA REVIEW: Jerry noted that weather and traffic conditions prevented Russ Proctor of Watson Wyatt Worldwide (actuarial consultant). from reaching Fort Collins. Since many of the agenda items involved information from Russ, it was agreed that the Committee would review the items on the agenda, but probably not consider them in depth until Russ was able to attend. ITEMS OF NOTE: 1. Jerry welcomed back Gary Ellis, who had missed two meetings due to surgery. 2. Dave Meyer is absent today due to health problems. He has also reported to Jerry that he probably will not be able to continue to serve on the GERC after his term expires in June. Jerry advised the group that applications for Dave's potentially vacant position will be distributed in April and asked them to be contacting City employees who might be interested in serving. 3. Jerry met with Mayor Ann Azari on December llth and she reaffirmed her interest in the Retirement Committee. She keeps up with minutes and correspondence and is supportive of the Committee's work plan. 4. An "Easy Out" (or Early Out) retirement plan has been made available to employees in Light & Power, Water and Wastewater, Communications, and Equipment Services. There seem to be many questions which Jaime Mares, Human Resources Director, will need to answer. Jerry reminded those present that when the previous "early -out" option was being considered, Russ Proctor, actuarial consultant, had advised the GERC that even if all those eligible for early retirement chose to receive their GER Plan benefits immediately, there would be a minimal financial impact on the Plan. -1- APPROVAL OF MINUTES: Jerry noted that in Item #2, the word "when" should be deleted from the last sentence in the CONCLUSIONS/NEXT STEPS section. Bob Eichem also noted that the date in the heading should be December 7, 1995. Alan moved that the minutes be accepted as corrected and Jacci Peterson seconded the motion. The vote was 4-0 to approve the motion. DISCUSSION TOPICS: 1. PLAN MEMBER/CITIZEN COMMENTS: The two Plan members in attendance had wished to address the Committee regarding the "Rule of 80", but left when it became apparent that the full discussion would not take place this month. 2. UPDATE ON "RULE OF 80" ISSUES MAIN POINTS: There was an extensive discussion of the Committee's under- standing in respect to the issue of a "Rule of 80". Several options were discussed, including: 1) Continue with the present plan with enhancements as circumstances allow. 2) Institute a "Rule of 80"-type plan for some or all present GER Plan members. 3) Change to a defined contribution plan. It was suggested that the Committee look at the Plan document and Charter/ Code provisions to determine the Committee's role in this issue. Also, an education program for Committee members and Plan members (which would consider all sides of the "Rule of 80" issue) would be beneficial. GER Plan members could then be polled about the direction the Plan should take. CONCLUSIONS/NEXT STEPS: This item will be included on the February GERC agenda for further discussion with Russ Proctor in attendance. 3. DISCUSSION ON COST -OF -LIVING (COLA) AND TRENDS IN RETIREMENT MAIN POINTS: Currently there is no cost -of -living increase (COLA) built into the GER Plan. COLAs have been recommended twice by the GER Committee, and approved by City Council, as funding has allowed. The last COLA for retirees was in 1990 and involved a graduated amount based on the length oftime the person was retired. There is a push from some retirees for a COLA increase, but funding is a problem. Per our total compensation policy, the cost would be paid by contributions of current employees and earnings on investments. CONCLUSIONS/NEXT STEPS: This item will be included on the February GERC agenda for further discussion with Russ Proctor in attendance. 4. PERSONAL RETIREMENT PLANNING STATEMENT FORMS MAIN POINTS: Russ was to bring a final draft of the new "Personal Retirement Planning Statement" forms (formerly the Personal Retirement Benefit Report form) for the Committee to review. Bv41 CONCLUSION/NEXT STEPS: Since the form was not available, it was agreed that Russ would FAX a copy to Sue for distribution to the members and staff for review before the next meeting. 5. UPDATE ON ASSUMPTIONS FOR THE ANNUAL VALUATION REPORT MAIN POINTS: There are a number of assumptions used in preparation of the Annual Valuation Report. This report is a financial statement for the Plan and projects the contributions required to fulfill the Plan's obligations. Assumptions are made on such things as the turnover rate of City employees and the rate of return on investments. These assumptions determine the viability of the Plan. CONCLUSIONS/NEXT STEPS: This item will be included on the February GERC agenda for further discussion with Russ Proctor in attendance. 6. INPUT FOR 1995 GERC ANNUAL REPORT DUE JANUARY 31 MAIN POINTS: Each year City Council members receive an annual report from the Retirement Committee outlining the Committee's activities and accomplish- ments for the year. CONCLUSIONS/NEXT STEPS: Jerry will prepare and distribute a draft of the 1995 Annual Report to GERC members and staff for their review and input. 7. NEXT MEETING MAIN POINTS: Discussions of this meeting's agenda items were incomplete because weather conditions prevented Russ Proctor from attending. CONCLUSIONS/NEXT STEPS: In order to incorporate the information Russ Proctor planned to provide, the GERC members agreed to add many of today's agenda items to the agenda for February 1st. In order to accommodate this lengthy agenda, the meeting will begin at 12:30 p.m. on February 1st. Because of the interest in the "Rule of 80", that item will be scheduled for 1:15 p.m. AGENDA 1 SCHEDULE FOR NEXT MEETING The next meeting will be February 1, 1996 beginning at 12:30 o.m. in the Second Floor Conference Room of City Hall West. Because many members are concerned about the "Rule of 80", the Committee will discuss it at 1:15 p.m. The agenda will include: 1. 1:15 p.m. - Update on "Rule of 80" Issues and Trends in Retirement 2. Plan Member/Citizen Comments 3. Report from Jacci Peterson on Retirement Seminar/Conference 4. Investment Report: Fourth Quarter, 1995/Year-end Preliminary Report 501 5. Discussion on Cost -of -Living (COLA) for Plan Members and Retirees 6. "Personal Retirement Planning Statements" Form Draft 7. Update on Assumptions for the Annual Valuation Report B. Investment Policy Changes 9. Final Draft of "General Employees Retirement Plan Summary" Booklet ADJOURMMENi The meeting was adjourned at 2:30 p.m. FUTURE MEETING SCHEDULE: The General Employees Retirement Committee normally meets at 1:15 p.m. on the 1st Thursday of each month (SEE NOTE BELOW) in the 2nd Floor Conference Room, City Hall West. NM: TIME CHANGED TO 12:30 PM ON THURSDAY, FEBRUARY 1, 1996, Second Floor Conference Room, City Hall West. THURSDAY, MARCH 7, 1996 THURSDAY, APRIL 4, 1996 THURSDAY, MAY 2, 1996 THURSDAY, JUNE 6, 1996 THURSDAY, JULY 11, 1996** THURSDAY, AUGUST 1, 1996 THURSDAY, SEPTEMBER 5, 1996 THURSDAY, OCTOBER 3, 1996 THURSDAY, NOVEMBER 7, 1996 THURSDAY, DECEMBER 5, 1996 **Rescheduled because of holiday -4-