HomeMy WebLinkAboutRetirement Committee - Minutes - 11/19/1974MINUTES
CITY OF FORT COLLINS
EMPLOYEES RETIREMENT BOARD
A meeting of the Employees Retirement Board was called to order by the Chairman,
Mr. John D. Hartman on Tuesday, November 19, 1974, at 3:30 p.m.
Members Attending: John D. Hartman, Warren Dalke, Jack E. Williams
and Charlie D. Cain
Members Absent: Dr. Philip A. Shade
John Hartman submitted a suggested letter to answer the City Manager's letter
of October 24. After review and discussion of the letter, it was decided the
letter should be presented as shown in these minutes.
• It was discussed and decided that the board would actively determine the
limitation of the law and consider specific instruments of investments and
make suggested proposals that the City Attorney could give a ruling on.
Discussion about the purchase of liberal investments versus conservative
investments followed.
Discussion of the status and legal requirements of a trust were discussed.
Further discussion of the acturial study. It was generally felt by the board
members that if all items were equal, they would prefer to use local people.
However, at this time, it was felt that we should use Frank B. Hall & Co. since they
had done the preliminary work for the retirement and much of the necessary programming
was completed. Mr. Williams made a motion to use Frank B. Hall & Co. at this time.
Motion was seconded and carried unanimously.
e /'lt L I t Viz.
Charlie D. Cain
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JOHN D. HARTMAN j NOV 2 ; 1974 1
300 Yale Way r ----�
Fort Collins, Colorado 80521 "ITY MANAG EF
November 20, 1974
Robert L. Brunton, City Manager
City of Fort Collins
P. 0. Box 580
Fort Collins, Colo. 80521
Dear Mr. Brunton:
Your letter of October 24 addressed to All Board, Commission and
Committee Members was discussed by the Retirement Committee yesterday and I
was instructed to reply as follows:
14hat the basic purpose of the group is perceived to be and what it ought to be.
The Council Resolution adopted Jame 24, 1971, provides that the
members of the Retirement Committee supervise the administration
of the City's 'Retirement Plan in accordance with its terms and
should have all the powers now provided for in the Plan or as may
be provided for in any amendment thereof. A study of the Plan shows
that the Retirement Committee should authorize all retirement pay-
ments for normal retirement and early retirement as well as payment
of death benefits. It is also to determine if a member becomes
totally and permanently disabled. It also asks the Actuaries to
determine the amounts pa;,rable and when. In practice it would seem
that the Committee has no occasion to exercise any judgment or
discretion; the requests to the Actuaries are made as a matter of
course without Committee action and approval of amounts payable to
retired employees consists only of going through the form of approving
the Actuaries' figures. The Committee members feel that they should
have the power to supervise and control the investment of the trust
funds, and that they be required to advise the Council with regard to
any proposed amendments to the Retirement Plan.
The role it should play within the city government structure and its
relationships to the Council, the Administration, other boards, committees
and commissions, and to the citizenry.
The Committee should be no part of the city administration, but should
be an independent group in charge of the retirement fund which is no
longer the property of the city but which belongs to the members of
the *ietircment Plan.
An assessment of whether its members believe that the group, as currently
constituted and operating„ is making an effective contribution, and an
identification of any factors which appear to limit its ability to do so.
• Because the Committee has no real authority or duties, the Plan would
operate just as effectively if there were no Committee. It merely
"rubber stamps" what the Actuaries do, and it has no control of the
trust fund or its investment.
Robert L. Brunton, City Manager Page 2 11./20/74
• Mether its membership, in numbers and background, is proper.
The Committee now has five members; the Director of Finance, a City
employee, and three citizens, one of whom is a Colorado State University
faculty member who has been unable to attend any Committee meeting held
within the fast year. If he could be an active member,. it would appear
that the number of members is adequate and the background of the present
members very satisfactory to do the work of an active Committee if it
is given real supervision of the Plan.
Whether it believes it receives adequate staff support and if not, what is
needed.
The staff support has left nothing to be desired. In fact, it could
continue to carry c,ri ti;e wurk of thrs Co;msitt-^.c ra:, now constituted
without any Coi^mittere, and the Director or Finance: is, comImended on the
manner in which he has invested the trust funds.
,r'hat its members understand the group's scope of authority to be.
This topic has been discussed above.
Whether it should continue in present form, merge with another group, be
modified or discontinued, and why.
• It should not continue in its present form (that is to say, with its
present duties and authority) and it is understood that; it, cannot
merge with another group. We have been advised that the Retirement
Committee is a necessary part of the Plan, but it should be given the
power to supervise and control the investment of the funds belonging
to the Plan. As otated above, the Director of Finance has done an
excellent job of investing, but it is not fair to him to place the
responsibility on him alone, in addition to his other duties for the
City. If the Committee is not to have this power, then there is
nothing left for it to do except approve figures given it by the
Actuaries. The raembers of the Committee are willing and able to help
%administer the Retirement Plan, but they feel they are accomplishing
nothing of value when all they do is go through the form of approving
matters which are in fact nothing but routine.
Respectfully submitted,
Chairman