HomeMy WebLinkAboutRetirement Committee - Minutes - 02/19/2009General Employees Retirement
Committee
215 N. Mason
2"" Floor
PO Box 580
Fort Collins. CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES' RETIREMENT COMMITTEE
MINUTES
FEBRUARY 19, 2009
1:15 To 3:00 P.M.
215 N. MASON —ROOM 2A
COUNCIL LIAISON:
COMMITTEE MEMBERS PRESENT:
COMMITTEE MEMBERS ABSENT:
OTHERS PRESENT:
Meeting called to order at 1:15 p.m.
Citizen Participation
None
Councilman Ben Manvel
Jim O'Neill, Chair
Charles Seest
Rick Richter, Vice Chair
Jim Lathrop
Dennis Freeburg
Angelina Sanchez -Sprague
Harold Hall, 221-6784
Chris Donegon, 221-6747
Heather Shepherd 221-6788
Janie Appleton 221-6562
Greg Tempel, Assistant City Attorney 221-6267
Pat Kahle, Milkman
Election of Chair and Vice Chair for 2009
Angelina Sanchez -Sprague moved to nominate Rick Richter for Chairperson of the
GERC. Dennis Freeburg seconded the motion. The motion passed unanimously and
Rick Richter is the new Chairperson.
Dennis Freeburg made a motion that Jim Lathrop be elected as Vice Chairperson of
the GERC. Angelina -Sanchez -Sprague seconded the motion. The motion passed
unanimously and Jim Lathrop is the new Vice Chairperson.
Wit` Collins
Consider Approval of the January 8, 2009 Minutes
Jim Lathrop moved to accept the minutes and Dennis Freeburg seconded the motion.
Motion passed unanimously.
Discussion of Actuarial Assumptions
Pat Kahle presented the revised personal planning statement for 2009 which is sent to
GERP members. Pat asked for input on any wording changes from the Committee.
Pat also distributed an excerpt from the 2008 Actuarial Valuation Procedures and
Assumptions, and a summary document showing the withdrawal and retirement
experience through 2008. Pat explained that we must review the prior year's
assumptions and update as necessary for 2009 valuation. The following assumptions
were reviewed for changes:
Investment earnings —No change
Wage Increase —Change from 4%to 3.5%
Continue Retirement Assumption - No Change
Withdrawal Assumption - No Change
Marriage Rate- No Change
Mortality- No Change
Disablement - No Change
Expense- No Change .
Jim O'Neill moved to approve the actuarial assumptions as discussed, minus the salary
data. Rick Richter seconded, and the motion passed unanimously. Pat told the group
she will bring the Salary data to the next regular GERC meeting.
Discussion of 2010-11 BFO input
Jim O'Neill advised that the budget process is now beginning and this Committee has
the opportunity for input if desired.
Distribute 2008 Annual Report
The 2008 Annual Report is now finalized and it has been submitted to the City Clerk
Monthly Investment Report
Harold Hall reported that the GERP portfolio yield at the end of 2008 was down
26.17%. The Fidelity Value fund dropped two Morningstar ratings and the Fidelity
Equity, Vanguard Growth, Vanguard Mid Cap, and TRP New Asia funds all dropped one
Morningstar rating. The Federated Cap A and Dreyfus Emer A funds increased one
Morningstar rating.
The YTD return for January 2009 was down 3.20%.
City of
Fort Collins
Harold reviewed the method that will be used going forward to assist with investment
decisions. A spreadsheet has been developed that compares the currently held
mutual funds against investment policy metrics and average category results for each
category type. This will help determine which funds to move out of, and which ones
remain solid.
Angelina asked if the investment practice should get more conservative as this group
ages and approaches retirement age. The time frame is shorter to invest or reinvest
and get a solid return. The Members discussed how these questions relate to the
current Investment Policy. It was suggested that the Investment Policy be reviewed
by the Committee at future meetings.
Other Business
None
Jim Lathrop moved to adjourn the meeting and Rick Richter seconded the motion.
Meeting was adjourned at 3:40 p.m.