HomeMy WebLinkAboutRetirement Committee - Minutes - 02/11/2016General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES’ RETIREMENT COMMITTEE
MINUTES
FEBRUARY 11, 2016
1:17 TO 2:50 P.M.
215 N. MASON—ROOM 2A
COMMITTEE MEMBERS PRESENT: Angelina Sanchez-Sprague, Chair
John Voss, Vice Chair
John Lindsay
Delbert Bernhardt
Bill Switzer
COMMITTEE MEMBERS ABSENT: David Cox (excused)
OTHERS PRESENT: Janie Appleton
Harold Hall
Jenny Lopez Filkins
Joel Stewart, Milliman
Katie Antoline, Milliman
Claire Turney
Meeting called to order at 1:17 p.m.
Welcome to New Board Member: Delbert Bernhardt
Citizen Participation and Plan member Comments
No comments
Approval of Minutes from December 10, 2015
John Voss moved to approve the minutes. John Lindsay seconded. Minutes approved
unanimously.
Election of Officers
John Voss moved to keep Angelina Sanchez-Sprague as Chair. Angelina Sanchez-Sprague
moved to keep John Voss as Vice Chair.
Angelina asked for any additional nominations, no suggestions were made. So, Angelina asked
that the motions be voted on. Bill Switzer seconded both motions. The motions carried
unanimously.
2
Member Acknowledgement of Fiduciary Responsibility
This acknowledgement is a document kept on file for the members of the committee that details
what the responsibility is for the committee members. Each member needs to read and sign the
single copy of the document. Since Dave Cox was absent from this meeting, Jenny Lopez
Filkins said she would take responsibility for contact him and having him sign the document. All
other committee members present signed the fiduciary responsibility form document.
Review Actuarial Assumptions for January 1, 2016 Valuation (Joel Stewart and
Katie Antoline)
Joel Stewart and Katie Antoline presented the Actuarial Assumptions for January 1, 2016.
Addressing the Mortality Assumption: this assumption was most recently updated with the 2015
valuation. Joel recommends no change. The Board took no action to change the Mortality
Assumption.
Addressing the Withdrawal (Termination) Assumptions: in the past 5 years, this assumption has
been reasonably accurate. Joel recommends no change. The Board took no action to change
either the Withdrawal (Termination) Assumption.
Addressing the Retirement Assumptions: Joel recommended no change to the Retirement
Assumptions which were updated in 2012 and have been reasonably accurate since. The
Board took no action to change the Retirement Assumption.
Addressing the Form of Payment (Lump Sum Election): Joel said that we currently assume 30%
of retirees will elect a lump sum, an assumption that is supported by the last 5 years’ average.
Joel recommended no change. The Committee decided to make no change at this time.
Addressing the Disability: Joel said that the plan experiences significantly fewer disablements
versus retirement and withdrawal, so he recommended no change. The Board took no action to
change the Disability assumption.
Addressing the Inflation Assumption: the plan has a current assumption of 2.5%. In the 2014
Trustees Report, the Social Security Administration utilized an ultimate intermediate assumption
of 2.7%, and the most recent Milliman CMO has a long-term inflation assumption of 2.3%
beginning in 2019. So, Joel recommended no change to the assumption. The Board took no
action to change the Inflation assumption.
Addressing the Investment Return Assumption: the assumption is currently at 6.5% per annum.
Milliman’s CMO model produced a 20-year geometric mean return of 6.1% using the target fixed
income allocation and 6.3% under the Plan’s current fixed income allocation. 6.5% is
approximately the 53rd percentile under the current allocation. Joel recommended no change to
the assumption. The Board took no action to change the Investment Return assumption.
Addressing the Salary Increase Assumption: Since the plan is closed, the majority of the
participants are age 55 or older, with expected merit increases less than 0.5%. Joel
recommended no change to the assumption. The Board took no action to change the Salary
Increase assumption.
Addressing the Administrative Expenses Assumption: Prior years saw higher than expected
administrative expenses due to the plan changes. These fees are now decreasing year by year