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HomeMy WebLinkAboutRetirement Committee - Minutes - 05/25/1977• MINUTES CITY OF FORT COLLINS EMPLOYEES' RETIREMENT BOARD MEETING HELD MAY 25, 1977 Members Present: John Hartman, Jack Williams, Warren Dalke, Ronald R. Wood Members Absent: Phillip Shade Others Present: Mayor Arvid Bloom The minutes of the March 28, 1977 meeting were unanimously approved. The following retirement application was submitted to the board for consideration: Adeline M. H. Flaa - Normal Retirement Benefits - Joint and Survivor, 1/2 to Beneficiary Option - $101.88 for the lifetime of Adeline Flaa, 1/2 to beneficiary. Retirement date - June 1, 1977. Warren Dalke made a motion that the retirement be granted as requested. Jack Williams seconded the motion. The motion passed unanimously. • Ronald Wood advised the board that Manual Kerbel had verbally requested a disability retirement with payment being made in the form of a lump sum payment. Mr. Wood felt that Mr. Kerbel's retirement was disability with the evidence presented in the letter from Dr. Murray. Mr. Wood advised the board that large lump sum payments were detrimental to the fund and payable only at the discretion of the board. It was noted that the board does have a responsibility to the remaining members of the fund. Mayor Bloom stated there is a need to set a policy as to when and how we will approve lump sum payments. Manual Kerbel was then asked to attend the meeting and provide his reasons for the lump sum choice. Reasons given were: (1) lump sum would do him more good than monthly payment, (2) could draw interest on the money, (3) could be assured of getting the full amount. The board discussed the various options available to Mr. Kerbel. In discussing these options the board felt there was an error in the 10 Years Certain and Continuous Option. Mr. Wood will contact the actuarian to discuss this. Mr. Kerbel stated he would probably request the 10 Year Alternative Benefit if the lump sum was not granted. 40 Minutes - Employees' Retirement Board May 25, 1977 • Page 2 Mr. Kerbel was advised that the board would discuss his request, contact the actuarian, and meet June 2, 1977, at 2:00 p.m. to make their decision. Mr. Wood advised the board that he had contacted Art March, Lucia Liley, and Tom McComb regarding the definition of disability and guidelines on lump sum payments, and this information was presented. No formal presentation was made since there are still problems to finalize. The committee felt it would be a good idea to incorporate the wording "needs of the plan and employee" into the guidelines. Meeting adjourned. • 0 Respectfully submitted, Ronald R. Wood Retirement Plan of*he City • of Fort Collins, Colorado SECTION IX - WITHDRAWAL FROM SERVICE Upon termination of service prior to normal retirement date for any reason other than retirement, disability or death, a member who has completed in the aggregate at least ten years of credited service, shall become a vested member. A vested member shall be entitled to receive at normal retirement date, if living, a retirement benefit equal to the vested portion (as shown in the table below) of the retirement benefit to which he would otherwise be entitled at normal retirement date, based upon his compen- nation and credited service up to the data of his termination of service. Completed Years % of Earned of Benefit Credited Service Vested Less than 5 0% 6 20% 7 40% 8 60% 9 80% 10 and Over 100% The amounts payable under this section shall be paid to the vested member upon his request on or after his normal retirement date. However, the actuarial equivalent of such monthly payments may, at the sole discretion of the Retirement Committee, be paid in a lump sum at the time employment is terminated. n