HomeMy WebLinkAboutRetirement Committee - Minutes - 02/28/2019CiPfbottins
General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.22't.6788
970.221 .6782 - tax
fcgov.com
GeneRal Eurpr-ovees' RenReuerur CourvurrEE
Mrruures
Specrnl Meerrruc - FeaRunnv 28,2019
215 N. Mnsoru - Conreneruce Roou 1B -
Frnsr Floon - 1:15
pnit
Committee Members Present: Clark [Vlapes, Chairman
John Voss, Vice Chairman
James Lathrop
John Lindsay
Del Bernhardt
Ralph Zenlz
Others Present Blaine Dunn
Carolyn Koontz
IVeeting called to order at 1:15 pm
1. Citizen Participation and Plan Member Gomments - None made or noted
2. Gonsider Adoption of Milliman Key Assumptions
Following review, it is recommended that the supplemental payment stay at $1.2tt/ for
now. Committee plans to make a recommendation regarding the supplemental
payment at the beginning of 2020 (next BFO cycle).
Updated Mortality Table: The new municipal mortality table (updated every 10 years)
is driving the possible new amount. lf we adopt these mortality tables, we will have time
to work on supplemental contribution amount adjustment.
Lump Sum Distribution Assumption; current assumption assumed 0
Recommended it be changed to 70130
James Lathrop made a motion to accept the lVlilliman review assumptions with their
recommended changes including the updated mortality table and the lump sum
distribution assumption. Clark l/apes seconded the motion. None opposed. The motion
passed unanimously. See detail below;
c
Itins
Demographic Assumptions:
1) Mortality: New tables published in January 2019 by the Society of Actuaries
(SOA) based on public sector plan experience only. Past assumptions have been
based on the RP-2000 tables from the 90's. Life expectancy under the new table
is approximately two years higher for males and three years higher for females
when compared to the previous assumption. See table below;
High-Lcvol Effects of Rccommcndation: Vanes by partrcrpant. w(h most partrcrpants
havrng an increased lrfe expectancy The follolung table shor,'{s the estimated tmpact lo the
Plan s Net Pension Liability al December 3 l. 20 l8 under the new morlality tables
1 21 31 1201 8 (Estimrted)
12131r2017
otd
Monality Mortalityr.2
Ncw
Monaliryt.t
Oiscount Raia
1 Total Pension Liability (TPL)
2. Frduclary Net Postuon (FNP)
6.24%
560 0m
$48 8m
6.26%
$59 6m
$43.1m
6.26./"
562 5m
$43 lm
6.64'/,
t66 7m
S43.1m
3 Net Pensron Liabihty (NPL)
1 -2 511 2m Sl6 5m S19 4m S23 6m
4. FNP as a
0,6 of TPL
2 - 1. 819! 720.o 659i
2 3 I Ail Calaiated CalqJlated olier assulrptixrs usrE usrE tne blended Him's e rate the bnglefm sane based as m nvestmeot tios€ dedehn drsdcG€d rate in ZUI'l ol rn return our and Jaruary.fle
rssufipl,z0-I )€fr on , 20 t\I tuni 8 tl.rdng bord nte vaIlalim o14.1096, rcporl 6
requred under GASS 67/68
2
City
4) Retirement Age and Form of Paymenl for Future Retirees from Defened Vested
Status: 100% taking an annuity is not accurate
Recommendation; Consider updating form of payment election assumption for
future retirees from deferred vested status to 70% elect an annuity upon
retirement and 307o elect a lump sum upon retiremenl.
Discussion: Experrence oI lump sunr eleclEns over lhe last frve years ls sumntarEed rn lhe
followng table
2014 2015 2016 2017 20lE Totll
Lump sums
Total exits
% laking a lump sum
?
12
17%
5
12
42%
'I
10
t0%
2
t1
t8%
14
50
?80h
The average age of all exlts lrom defened vested stalus as 64.4. and the average age of
those electing an annuity is 64.8. Deferred vested participants curently make up a
Del Bernhardt and Ralph Zenlz will not be available to attend the l/larch 14th GERC
meeting.
Meeting adjourned at 1:35 PM
John Voss, Vice Chairman
Carolyn Koo , Staff Lrarson
ins
3
Current Assumption: Deferred Vested particrpants are assumed to retire at age 65
(Normal Rellrement) l00oo of fulure retirees from defened vested status elect an annuity
upon relirement
4
5
B0q6