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HomeMy WebLinkAboutRetirement Committee - Minutes - 07/24/1975r 0 MINUTES CITY OF FORT COLLINS EMPLOYEES RETIREMENT BOARD SPECIAL MEETING HELD 7-24-75 Special meeting was held for the approval of two applications for retirement. Marion V. Turner - Full Joint and Survivor Benefit - the member elected to recieve a retirement benefit of $31.13 per month, payable throughout her life, with the provision that upon her death a retirement benefit in the same amount shall be continued during the lifetime of her beneficiary (beneficiary, husband - Jerry Turner, born April 10, 1910). The application for retirement was approved. • Charlie D. Cain • i Members present: EMPLOYEE'S RETIREMENT: John Hartman, Jack Williams, Phillip Shade, Charlie Cain FIRE: POLICE: Absent: Warren Dalke Art Eckdahl, Glen Walters, Roger peter, YOM :, Charlie Cain, Jack Russell Clarence J. Davis, Verna Lewis, Charlie Cain, Jack Russell The first joint meeting of the three pension boards of the City of Fort Collins was called to order July 24, 1975, by Mayor Jack Russell. City Attorney Art March explained the intent of the resolution adopted by Council to have combined meetings was to discuss canmon areas they were all involved in; for example, investments. The possibility of combining the actuarial studies was suggested at this time. Art Eckdahl from the fire board indicated they were quite pleased with the individual they had been dealing with. They felt the person accommodated their needs well and made every effort to minimize cost. The question was raised as to whether there would be some problem in combining studies since the police and fire pensions were governed by State Law and the naployee's Retirement was a local municipal pension. Charlie Cain advised that in the very recent past all three funds had been using the same actuary. He explained that the local actuary, Tom McComb, had demonstrated an interest in this area, thereby prompting him to solicit proposals from Tan McComb and Don Mazanec. Mr. Brunton felt this a wise decision feeling we should give our local people a fair chance and then evaluate the proposals. Mayor Russell suggested formation of a committee to look over the two proposals received and cane back to the boards with a directive. The crnmittee was composed of the following people: John Hartman, Glen Walters, Clarence J. Davis, and Charlie D. Cain, who was to be ex officio member. Mhyo;- Russell cited the responsibility of this committee was to review the proposals of tie actuaries, to evaluate and make selection with the purpose of combining the actuarial studies - general, police and fire and/or it could very well go a different direction, that of remaining somewhat like it is., An interview was suggested with these people to determine if we could work with then. Combined Meeting of Pension Boards Page 2 Meeting held July 24, 1975 Art March, Jr. advised that each individual fund should make a recommendation since the combined group does not have the power'to spend the other funds money. The next topic of conversation was investments. Charlie Cain advised the group that it would be necessary for them to give him direction as to their wishes of reinvesting the $100,000 each fund had caning due Monday. Mr. Cain explained that his current philosphy was to invest primarily in short term (6 months) Bank C.D.'s. At this time, it was noted that 300 of a fund could be invested in the stock market, a fact Charlie Cain is to verify. Attention was also given to the restriction that no more than 5% could be in any one corporation. Art March, Jr. felt the boards should consider (1) the desirability of going to other types of investments; and, (2) means of doing this. Art Eckdahl then advised the boards of a recent bid they had received from a local savings and loan. This was a 6 year C.D. on which the annual yield would approach 106. Considerable discussion followed concerning banking concepts and annual yield definition, the result being that the C.D. rate would actually be 7.75%. Mr. Williams felt that it would be a good idea to continue short term investments at this time. It was his opinion that quite possibly interest rates would increase. Clarence Davis advised that the police department was currently looking at an insurance program that had a lot of potential and they would be doing comparison studies to determine the best investment. After an individual vote of all three funds, it was decided that Charlie Cain should reinvest the current monies in either Bank C.D.'s or T-Bills whichever had the highest rate and it should be for 6 months. The second suggestion by Art March, Jr. was then discussed. Mr. Williams relayed that the general employee's camittee had recomiended an inhouse committee composed of expertise in the community rather than going outside house. He explained this was to be an advisory staff and it would aid Charlie Cain since there was some doubt about his authority in investing pension funds. Mr. Brunton stated that, with the approval of Mayor Russell, he would like to form a comittee to review the entire investment portfolio. He felt we had some real experts in the field and they would be of great assistance to the City of Port Collins. By this means, the advisory staff could report back to the penion bo rds on the pension funds and report to Council on the other investments. It was decided that Mr. Brunton would set up this committee and notify those involved. Meeting adjourned. Respectably suYmitted, Clkirlie D. Cain • 0 CORRECTION FOR MEETING HELD JULY 24, 1975 Date of Correction: September 5, 1975 *Next to last paragraph. Mr. Williams relayed that the general employee's committee had recommended an inhouse committee composed of expertise in the community rather than going outside house. He explained this was to be an advisory staff and it would aid Charlie Cain by relieving him of the entire responsibility of investing pension funds. Charlie D. Cain