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HomeMy WebLinkAboutRetirement Committee - Minutes - 12/14/2023 General 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 ZOOM MEETING MINUTES DECEMBER 14, 2023 11:00 AM Committee Members Present: Clark Mapes, Chair Randy Bailey, Vice Chair Del Bernhardt Jackie Darner John Unger Ralph Zentz Others Present: Adam Halvorson Jenny Lopez Filkins LeeAnna Vargas Amber Fluke Ryan Malarky Joel Stewart, Milliman Carolyn Koontz ___________________________________________________________________ Meeting called to order at 11:10 am 1. Citizen Participation and Plan Member Comments - none noted. 2. Consider Approving the Minutes from the Meeting of November 9, 2023 Del Bernhardt made a motion to approve the minutes as presented. Randy Bailey seconded the motion. Approval confirmed via roll call; Clark Mapes, Randy Bailey, Del Bernhardt, Ralph Zentz, Jackie Darner, and John Unger. 3. Plan Participant Updates (LeeAnna Vargas) LeeAnna is working with two members whose benefits will begin this month. One is a beneficiary of a GERP member. The other plan member chose to roll over the lump sum amount into an IRA. December GERP benefit payments will be processed early on December 22nd. A member has requested to change her beneficiary at this time. The member has been receiving benefits since September of 2019. The member is dissatisfied that she is not able to change her beneficiary. DocuSign Envelope ID: B338A6A9-D8CA-48A5-9E3E-820A4542EBF5 2 The ‘plan’ says that a beneficiary can only be named at the time the member begins taking their benefits. The benefit is calculated based on the member’s age at the time the distributions begin. Joel Stewart; The benefit amount is based on the age of the member at retirement. Allowing a beneficiary change after the initial calculation would likely cause issues with administration of the fund for all members. Plans don’t normally allow this practice. There are IRS guidelines on the age gap between the member and a non-spousal beneficiary. The member asked if she could change it to another person and then asked if she could change it to a charity. GERP members must identify the beneficiary before the distribution payments begin. Once a member goes into payment status, they cannot change their beneficiary. Randy Bailey; It might be prudent to communicate the importance of this before a member goes into payment status. LeeAnna Vargas will follow up with the member via email. 4. Review Investment Report (Adam Halvorson) 18.3% YTD return - Fidelity Enhanced Mid Cap was changed to an Exchange Traded Fund (ETF). Adam is in the process of selling this, but he can only sell 17K shares per day. Adam will sell the daily max until the entire ETF is sold off and then plans to go back to another mutual fund in the medium blend category. DocuSign Envelope ID: B338A6A9-D8CA-48A5-9E3E-820A4542EBF5 3 DocuSign Envelope ID: B338A6A9-D8CA-48A5-9E3E-820A4542EBF5 4 The high mark for the portfolio was $54.5M at the end of 2021. 5. Investment Manager - Next Steps (Randy Bailiey) Following up on the introduction of the idea of an investment manager proposed by Blaine Dunn last month. We need to confirm and validate with Purchasing if we need to go through the full RFP competitive process. We have an existing relationship with Innovest and would like to confirm whether we need to go through a full RFP process or if we can expand our current relationship with Innovest to include the GERP investment manager role. 6. Other Business Meeting adjourned at 11:40 am DocuSign Envelope ID: B338A6A9-D8CA-48A5-9E3E-820A4542EBF5 5 Clark Mapes, Chair Carolyn Koontz, Staff Liaison DocuSign Envelope ID: B338A6A9-D8CA-48A5-9E3E-820A4542EBF5