HomeMy WebLinkAboutRetirement Committee - Minutes - 09/02/2004P a fi ij"ti;?�.
City of Fort Collins
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COUNCIL
LIAISON:
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Mayor Ray Martinez
COMMITTEE
MEMBERS Jim O'Neill, Vice Chair 221-6779
PRESENT:
COMMITTEE Susan Lehman, Chair 221-6813
MEMBERS Michelle Hays -Johnson, 416-2158
ABSENT:
OTHERS Pat Kahle (Actuary, Milliman)
PRESENT: Greg Tempel (City Attorney's Office)
Debbie Weedman (Human Resources)
Julie Depperman (Finance)
Approved October 7, 2004
Alan Krcmarik, 221-6788
Dottie Nazarenus, 204-4429
Bill Switzer, 221-6713
CALL TO ORDER: At 2:00 p.m Alan Krcmarik suggested the people present begin
the meeting. Only two members of the Committee were present. For a quorum to
exist, at least four members need to be in attendance. The two Committee members
agreed to proceed, recognizing that no official action could be taken.
PLAN MEMBER COMMENTS: This place on the agenda is reserved to receive
comments from Plan Members or the public. There were no comments.
APPROVAL OF MINUTES: Minutes of the August 5, 2004, meeting were distributed.
The review and approval of the minutes will occur when a quorum exists.
DISCUSSION TOPICS:
1. Plan Philosophy: There were no comments on Plan Philosophy.
2. Update on Summary Plan Description: The Committee members present and
staff continued to review and edit the Summary Plan Description Handbook. The
changes that were suggested are highlighted in the attachment to these minutes.
During the review process, Greg Tempel identified an inconsistency in the Plan
document and administrative practices. The inconsistency relates to the timing of
the initial retirement payment. Greg advised the Committee that the
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 2
administrative practice must be changed to meet the Plan requirements. The
Committee members present agreed to make the change and to recommend to the
remaining Committee members to place the issue on the Work Plan for further
discussion and analysis.
3. Monthly Investment Report: Julie Depperman prepared an Investment Report
for the eight months ended August 31, 2004. The report is attached to these
minutes.
4. Other Business: No other business was discussed.
Adjournment: There being no further business, the meeting adjourned at 3:40 p.m.
TOPICS FOR NEXT REGULAR MEETING
The next regular meeting of the Committee will be on October 7, 2004, at 1:45 p.m.
in the Council Information Center of City Hall. The tentative agenda includes:
Plan Member Comments
Approval of Minutes
Plan Philosophy
Update on Summary Plan Description
Investment Report
Other Business
GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The General Employees'
web page can be found at www.fcaov.com/cityclerk/retirement.ihp. The Committee's
2003 Annual Report, 2004 Work Plan, and monthly minutes are available at this site.
2004 Meeting Schedule:
The regular meeting time for the Committee is at 1:45 p.m. on the first Thursday of
each month. The regular location is the Council Information Center at City Hall. For
2004, the Committee has scheduled the meetings as shown below:
3anuaFy 8 ApFil 1 'uly I (eaneeled) October 7
FebFuaFy 5 May August 5 November 4
Mare h4 3aFte 3 Septengber 2 December 2
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 3
Discussion Topic Number 1 Attachment: Revised Summary Plan Document
GENERAL EMPLOYEES'
RETIREMENT PLAN
SUMMARY PLAN DESCRIPTION
(CITY LOGO HERE)
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 4
GENERAL EMPLOYEES'
RETIREMENT PLAN
(Referred to as the "Plan")
SUMMARY PLAN DESCRIPTION
The General Employees' Retirement Committee presents this Plan Summary in
simplified terms to avoid some of the technical language in the Plan. If, in our
efforts to make the Summary easier to understand, we have omitted or misstated
any of the provisions, the Plan, as the official document, remains as the final
authority.
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 5
TABLE OF CONTENTS
This is set to track your changes.
INTRODUCTION
PLANHIGHLIGHTS....................................................................................
The General Employees' Retirement Plan, along with your personal savings, Social Security, the
457 Deferred Compensation Plan, and/or the 401(a) Money Purchase Plan can offer you financial
security during your retirement years. This Plan is a "Defined Benefit Plan." Your final average
monthly compensation and years of credited service are used to determine your benefit.
DEFINITIONS..............................................................................................
The terms defined here will help you understand the Plan. These defined terms are italicized
throughout this document.
PARTICIPATION AND COSTS......................................................................
You begin participating in the Plan on your first day of eligible employment. The City sets aside
money during your working years to fund your Plan benefits.
NORMAL AND DELAYED RETIREMENT...........................................................
Normal retirement age is 65, but you may continue working for the City and retire at a later date. A
formula is used to calculate your benefit. You must notify Human Resources at least 30 days prior
to the date of your first monthly payment.EARLY RETIREMENT BENEFITS
....................................................................
With at least two years of credited service, you may retire as early as age 55 and receive a benefit
payment from the Plan. If payments begin before age 65, your monthly benefits will be reduced
(see chart on pg. 7).
FORMS OF BENEFIT PAYMENT.....................................................................
When you retire, you will be asked to choose a form of benefit payment. Once your first payment is
made, you cannot change the form of benefit payment. The calculation of the retirement benefit
amount on z' is based on your life only. Optional forms of benefit payments with survivor
benefits are available.
IFYOU LEAVE..............................................................................................
If your employment ends, you are entitled to a monthly benefit starting any time between ages 55
and 65. Another option for benefit payment at any age is in the form of a lump sum, which can be
taken as cash or rolled into another tax deferred plan if the IRS regulations are followed.
DISABILITY..................................................................................................
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General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 6
If you are disabled, you may continue earning credit toward your retirement benefits. Retirement
Benefit payments will begin when you are eligible to retire under the Plan, or when long-term
disability payments end, whichever is later. Workers Compensation disabilities are also addressed
in this section.SURVIVOR BENEFITS
...........................................................................
If you left City employment or opted out of the Plan prior to January 1, 1994, death benefits (if any)
shall be determined in accordance with the provisions of the Plan in effect as of the date you left the
Plan. The provisions in this section apply to Plan members who were employed on January 1, 1994,
or after that date.
SOCIAL SECURITY BENEFITS.................................................................
During your working years, you and the City contribute to provide Social Security benefits for you
and your dependents when you retire.
ADDINGIT ALL UP.................................................................................
Your Plan benefits, along with Social Security payments, the 457 Deferred Compensation Plan,
and/or the 401(a) Money Purchase Plan will provide income when you retire. The table on page
AL shows some sample benefit payments at 20, 25, and 30 years of credited service.
ADMINISTRATIVE INFORMATION..............................................................
This Plan is sponsored by the City of Fort Collins and is administered by the General Employees'
Retirement Committee (GERC, or the Committee),INTRODUCTION
It is important for you to plan for your retirement during your working years. The Plan is designed
to help you accumulate part of the financial resources you will need for your retirement. Through
the Plan, the City sets aside money during the time you are working in an eligible position to
provide an income for you after you retire. You are not permitted to make additional contributions
to the Plan.
The Plan is one source of dependable retirement income for you. When it is combined with Social
Security, personal savings, the 457 Deferred Compensation Plan, and/or the 401(a) Money Purchase
Plan you have built up over the years, you should have the financial protection that will help you
enjoy your retirement.
This Plan Summary will give you a good idea of what benefits you can expect to receive from the
Plan when you retire, how these benefits are calculated, and other information about your
participation in the Plan. You can get an overview of the Plan by reading the information at the
beginning of each section. More detailed information appears below the page headings.
The General Employees' Retirement Committee presents this Plan Summary in simplified terms to avoid
some of the technical language in the Plan. If, in our efforts to make the Summary easier to understand, we
have omitted or misstated any of the provisions, the Plan, as the official document, remains as the final
authority.
If you wish, you may examine the legal document in the office of the City Clerk, in Human
Resources, or on the City's intranet. The Plan described in this Plan Summary was adopted January
1, 1971, and was most recently restated effective December 31, 2001, with subsequent amendments
through
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 7
PLAN HIGHLIGHTS*
The Plan, along with your personal savings, Social Security, 457 Deferred Compensation, and/or
401(a) Money Purchase Plans can offer you financial security during your retirement years. This
Plan is a "Defined Benefit" plan. Your final average monthly compensation and years of credited
service are used to determine your benefit.
• With the Plan, you can choose from a number of options to put together the retirement
package that is best for you. First you decide when you want to retire:
o Normal Retirement begins at age 65, with a benefit based on your compensation
and years of service.
o Early retirement, at reduced benefit levels, is available from age 55 until age 65.
If you wait until you reach age 65 to receive retirement benefit payments, the
benefit payments will not be reduced.
o Delayed retirement, working past your normal retirement age, is another option;
and credited service will continue to accrue.
Second, you choose one Retirement Benefit option:
o A formula ( is used to calculate your monthly benefit at
normal retirement age (which is age 65) payable for your life only.
o ORIf you wish, you can choose from a number of reduced monthly payment
options with survivor benefits.
OR
o You can also choose to receive a single sum payment.
• Third, if you die or leave the City before retirement, the Plan has provisions to
protect your benefits:
o If you leave employment with the City before becoming eligible for retirement,
you are eligible to receive a single sum payment '`" J . or you may be
Y g g P Y (��I
eligible for a monthly benefit as early as age 55.
o If you die before retirement, the Plan will pay a survivor benefit (�o. 090
18
iir;
o If you become disabled, you may continue to earn credited service toward your
retirement benefit � w�°�P
*Applicable details, formulas and restrictions are detailed in this Plan Summary.
DEFINITIONS in alphabetical order
The terms defined here will help you understand the Plan. The terms are italicized throughout this
document.
Credited Service is the period of employment used to determine your eligibility for, and the amount
of, your retirement benefit. You begin earning service toward your pension benefit from your first
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 8
day of eligible employment with the City. The accrual of Credited Service is pro -rated for part-time
Covered Employment.
You may continue to earn credited service during periods of disability that are covered under the
City's Long -Term Disability Plan, Social Security, or Workers Compensation insurance (s�� page
ADefined Benefit Plan, such as the General Employees' Retirement Plan, is based on your level of
salary and years of credited service and guarantees a monthly benefit beginning at your date of
retirement and continuing for your lifetime. The investment of General Employees Retirement Plan
funds is overseen by the General Employees' Retirement Committee and administered by the City's
Finance Department. The Plan funds are invested in a diversified portfolio appropriate to the Plan.
Defined ContributionPlans, such as the 457 Deferred Compensation and 401(a) Money Purchase
Plans, provide a single sum at retirement equal to the accumulation of employer and employee
contributions and earnings over your career. The employer usually contributes a fixed percentage of
compensation or matches a portion of the employee's contributions. The amount of the benefit
payment is not guaranteed. Allocation of funds, within plan guidelines, is the responsibility of
individual participants.
Final Average Monthly Compensation (FAMC) is used in calculating your retirement benefit,
except in cases of disability. It is determined by taking 1/60th of your total base compensation
during the 60 consecutive, highest -paid calendar months in your last 10 years of eligible
employment with the City. If you have less than five years of service, your final average monthly
compensation will be the average of your monthly compensation over your period of eligible
service as a participant. In the event that you have been employed on a part-time basis during any
portion of the period of time used to calculate the FAMC and have received part-time credited
service during that period, your compensation for that period of time will be converted to its full-
time equivalent for the purposes of calculating FAMC.
Your total base compensation is all income reported on your annual W-2 form from the City, plus
any base compensation that you elected to have deferred under a Deferred Compensation Program,
but excluding bonuses, overtime, lump -sum payment for accrued vacation, compensatory time
recorded as additional hours, workers compensation, or other extra pay.
The Plan Year is January I through December 31.
Vesting is the process of earning service credit to determine the portion of retirement benefit you
will be eligible to receive.. You have a vested interest in the Plan after completing two years of
credited service. You will be fully (100%) vested after completing five years of credited service.
ffill
(See chart on ' 0 for the vesting schedule.)
PARTICIPATION AND COSTS
You began participation in the General Employees' Retirement Plan on your first day of eligible
employment. The City sets aside money during your working years to fund your Plan benefits.
Plan Participation
On January 1, 1999 this Plan was closed to new members.Cost of the Plan
The City sets aside money during your working years to provide you with the benefits of this Plan.
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 9
An independent actuarial consultant advises the City regarding contributions to the Plan for future
benefits. The trust fund money is invested for future growth and earnings. The money in this trust is
used for the sole purpose of paying benefits and other expenses of the Plan.
NORMAL AND DELAYED RETIREMENT
Normal retirement age is 65, and your normal retirement date is the first day of the month on or
following your 65th birthday. You may elect to continue working after you reach normal retirement
age. In this case, your retirement date is the first day of the month on or following the date you
actually retire. IRS regulations require that a Member begin taking a minimum distribution from
the Plan beginning on April 1 of the calendar year following the later of the calendar year in which
the Member reaches age 70'/2 or the calendar year in which the Member retires from employment
with the City.
Calculating your Normal or Delayed Retirement Benefit Amount
With a defined benefit plan, a formula is used to calculate your monthly benefit at normal retirement
age, which is age 65, payable for your life only. The formula uses your years of credited service
under the Plan and your final average monthly compensation (FAMC) to determine your benefit.
See pages 2 and 3 for definitions of these terms. For optional forms of benefit payment, see pages 7
and 8.
The formula for calculating your monthly benefit at age 65 or older is:
1 %Z% x Final Average Monthly Compensation x Years of Credited Service x Vesting for part-time
service.
Let's look at a specific example to see how the formula works.
Suppose Don retires at age 65 with 30 years of credited service with the
City. His salary increased steadily over the past 10 years, and in the last
five years he earned $30,000, $30.500, $31,500, $33,000, and $35,000,
respectively.
He added these figures together and divided by 60 month to get his Final
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 10
Average Monthly Compensation (FAMC) of $2,667. Don's monthly
retirement benefit is:
.015 x $2,667 x 30 = $1,200
(1 %2%) (FAMC) Years of
Credited
Service
EARLY RETIREMENT BENEFITS
With at least two years of credited service, you may retire between ages 55 and 65 and receive a
monthly benefit or lump sum payment from the Plan. If monthly payments begin before age 65,
your benefits will be reduced, because payments are made over a longer period of time.If you retire
between ages 55 and 65 and receive a monthly benefit from the Plan, the formula for calculating
your early retirement benefit is the same as the normal retirement benefit formula described on the
P page, using your actual credited service at your retirement date. However, your benefit
will be reduced for earl payment ' ...'.
y p ym "' ' Also, if you have less than five years of
service, your benefit will be further reduced according to the vesting schedule on
Calculating your Early Retirement Benefit Payment
The reduction factor is 6 2/3% for each year you will receive payment between the ages of 60 and
65, and 3 1/3% for each year between ages 55 and 60. The percentages of benefits payable if you
retire before age 65 are shown below:
64 1 63 62 61 1 60 1 59 58 57 56 55
93 1/3 86 2/3 80 73 1/3 166 2/3 163 1/3 60 56 2/3 1 53 1/3 1 50
Suppose you elect to retire early at age 60 with 27 years of service. You want to begin
receiving monthly benefits right away. Your monthly retirement benefit payable at age 65 is
calculated to be $1,600. Your monthly benefit beginning at age 60 is $1,067 ($1,600 X 66
2/3%). If you had been age 55 instead of 60 and started payments immediately, your benefit
would have been $800 ($1,600 X 50%) Der month.
WHEN PAYMENTS BEGIN
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 11
Your retirement date is always the first day of the month. Your first retirement benefit payment will
be issued during the last week of the following month. For example, if you are at least 55 years of
age and your last workday is February 15, your retirement date is March 1; and your check will be
issued the last week in April.
You must notify Human Resources at least 30 days prior to the date of the first monthly payment
FORMS OF BENEFIT PAYMENT
When you retire, you will choose a form of benefit payment. You cannot change your choice less
than 30 days before the first payment is to be made. The calculation of the retirement benefit
amount on page 5 is based on your life only. Optional forms of benefit payments with survivor
benefits or a single sum benefit are available.
Basic Monthly Retirement Benefit
The life -only benefit provides monthly payments for your life only. Payments end when you die.
With this option, there are no survivor benefits.
Optional Forms of Payment
If you prefer a form of payment which provides survivor benefits or a lump sum payment, you may
elect an optional form of payment described below.
• 120 Months Certain & Life: Monthly payments are made to you for your lifetime
However, if you die before receiving 120 payments, your beneficiary or estate will receive
the remainder of the 120 payments. For example, if 55 payments have been made at the time
you die, the remaining 65 payments (120 minus 55) will be made to your beneficiary or
estate.
• 50% Joint & Survivor: This option pays benefits for your lifetime and continues to pay
50% of that amount to your beneficiary after your death.
• 100% Joint & Survivor: This option pays benefits for your lifetime and continues to pay
the same amount to your beneficiary after your death.
• Single Sum: This option pays a lump sum benefit that is equal to the basic retirement
benefit with an adjustment based on your average life expectancy and the time -value of
money. This single sum may be rolled into another tax deferred plan if the IRS regulations
are followed.
If you choose a form of payment that has survivor benefits, your benefit payment will be smaller
than if you received payments for your life only, because payments are expected to be made over a
longer period of time. If your designated beneficiary is ten or more years younger than you, your
benefit payment will be even further reduced; and the Joint and 100% Survivor option is not
available. The chart below uses actuarial tables to give you a comparison of these benefit
reductions.
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 12
BenefitEffect on
(This Chart Assumes Basic Monthly Retirement Benefit - $500 per
month)
Ages at
120 Months
Joint and 50%
Joint and 100%
Retirement
Certain and Life
Survivor
Survivor
Employee 65
$477
$464
$432
Beneficiary 65
*477
232
432
Employee 65
$477
$454
$415
Beneficiary 60
*477
277
415
Employee 65
$477
$444
$400
Beneficiary 55
*477
222
400
Employee 65
$477
$472
$449
Beneficiary 70
*477
236
449
Beneficiary receives balance, if any,
of 120 payments.
Benefit Amounts of Less Than $100 per Month
If your monthly retirement benefit payment is calculated to be less than $100, the payment of your
entire retirement benefit will be made in a single sum payment in lieu of any other benefit. The
amount of the single sum is based on the basic Normal Retirement Benefit with an adjustment based
on your average life expectancy and the time -value of money.
Accrued Benefit Value of Less than $5,000.
If the value of your accrued retirement benefit is less than $5,000, a payment of this value will be
made to you as a single lump sum payment in lieu of any other benefit.
Naming a Beneficiary
If you choose a benefit payment option that has a beneficiary benefit, you must name as a
beneficiary someone who will receive your benefit when you die. Your beneficiary may be your
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 13
spouse or any other person you designate, with your spouse's consent. You may not change your
beneficiary less than 30 days before the first payment of your benefit. In some cases, IRS
regulations may limit the choice of a beneficiary because of a large disparity between the age of the
Member and the age of the non -spouse beneficiary. If you choose a beneficiary who is more than
10 years younger than you, the beneficiary benefit will be less due to the fact that benefits will be
paid out over a longer period of time.
Spousal Consent
If you are married, spousal consent is necessary anytime you select a beneficiary other than your
spouse.
Deferred Vested Retirement Benefit
If your employment with the City ends , you will be entitled to receive a deferred vested retirement
benefit. The amount of your benefit will be calculated in the same way as the normal or delayed
retirement benefit described on ° '� i It will be based on your credited
service and final average monthly compensation as of your date of termination, and will be subject
to the following vesting schedule:
Vesting SchedUIC
Your Years of
Service
<2
2
3
4
5
Vested % of Your
0
40
60
80
100
Earned Benefit
If You Are Rehired
Once an employee leaves Covered Employment, they are not eligible to re-enter the Plan upon
rehiring. The only exception is when an employee leaves Covered Employment to undertake
Qualified Military Service pursuant to the provisions of the Plan.
DISABILITY
If you become Disabled while employed in Covered Employment with the City, you may be
eligible for Credited Service during your period of Disability and for a more favorable calculation
of your Retirement Benefit if you continue to be Disabled at the time of Normal Retirement (age
65).
Credited Service May Continue to Accrue
If you sustain a work -related permanent partial Disability as determined by the City's designated
workers' compensation doctor, an administrative law judge, or court, you may be entitled to a
maximum of two years of Credited Service during your period of Disability.
If you sustain a work -related or non work -related total Disability as determined by the City's
designated workers' compensation doctor, the City's long-term disability insurance company, or the
federal Social Security Administration, you may be entitled to Credited Service during your period
of disability.
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 14
If you are employed on a part-time basis at the time of your Disablement, Credited Service will
accrue at a pro rata rate.
More Favorable Calculation of Retirement Benefit
As explained earlier, a member's Normal Retirement Benefit amount is in part based upon the
member's Final Average Monthly Compensation (FAMC). Because the FAMC would be based on
pre -disablement salaries that could be many years out of date, the Plan provides for the Normal
Retirement Benefit to be based on the annualized rate of Compensation as of the date of
Disablement instead of the FAMC if the member remains Disabled until the Normal Retirement
Date (age 65). This minimizes the effect of averaging the member's salary over a 60 consecutive
month period prior to the Disablement and allows for considering the usually higher salary that the
member was making at the time of Disablement.
Early Retirement While Disabled
If you are Disabled, have terminated Covered Employment, and would otherwise be eligible for an
Early Retirement Benefit or a single lump sum benefit, you may choose to forego the accrual of
Credited Service while Disabled and the more favorable calculation of normal retirement benefits
(described above) by requesting an Early Retirement benefit (page _—) or a single lump sum
benefit (page _).
If You Recover Prior to Your Normal Retirement Date (Age 65)
If you recover from your Disability prior to reaching your Normal Retirement Date (age 65), you
will stop receiving Credited Service based on your Disability and you will no longer be eligible to
the more favorable calculation of your Normal Retirement Benefit. The calculation instead will be
based on your Final Average Monthly Compensation as of the time of Disablement.
Affect of Lump Sum Settlements with Workers' Compensation Insurance Plan, the City's
Long -Term Disability Insurance Company, or Social Security Administration
Sometimes, a Member may choose to receive a lump sum disability benefit payment in lieu of
ongoing payments from the workers' compensation insurance plan, the City's long-term disability
insurance company, or federal Social Security. Because it is a condition for the accrual of Credited
Service that the Member be receiving Disability benefit payments, the receipt of a lump sum
disability benefit payment from one of these sources will have a possibly limiting affect upon the
Member's receipt of Credited Service while Disabled. In this case, the Plan provides that the period
of accrual of Credited Service will be the period of entitlement which provided the basis for
calculation of the lump sum amount.
For example, if it were determined that you were totally Disabled and entitled to a $500 per month
long-term disability insurance payment, but negotiated with the long-term disability insurance
company for a lump sum payment from the company of $24,000 in lieu of the monthly benefit, you
would only be entitled to 4 years of Credited Service. At the end of the 4 years, you would not be
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 15
entitled to any further Credited Service based on your Disability and would therefore not be
considered Disabled under the terms of the Plan, regardless of your physical or mental condition.
SURVIVOR BENEFITS
If you left City employment or opted out of the General Employees Retirement Plan prior to
January 1, 1994, death benefits (if any) shall be determined in accordance with the provisions of the
Plan in effect as of the date you left the Plan. The following provisions in this section apply to Plan
members who were employed on January 1, 1994, or after that date.
Death Before Retirement Benefit Payments Begin
If you die while actively employed in Covered Employment while earning credited service for a
disability, or while you are retired but before receiving retirement benefits, the Plan will pay a
single lump -sum benefit to your surviving spouse, beneficiary, or estate. (An employee who dies is
considered to be fully vested, even if they have less than two years of credited service.) The lump -
sum benefit will be equal to 47% of the Actuarial Equivalent value of the life annuity benefit which
would have been paid to you had you quit Covered Employment at the earlier of the actual date of
separation or death, survived until the earliest retirement age, and retired with a life annuity.. Your
spouse may choose to defer payment of this amount, either as a lump sum or as a monthly benefit
payment, with payment(s) beginning after you would have reached age 55. If the survivor benefit
monthly payment is calculated to be less than $100 or if the accrued retirement benefit is less than
$5,000, the General Employees Retirement Committee will direct that your entire survivor benefit
be paid within 90 days in a single lump -sum payment.
After Retirement Benefit Payments Begin
If you die after retirement benefit payments begin, any survivor benefit payments will be
determined by the retirement benefit payment option you chose prior to retirement.
SOCIAL SECURITY BENEFITS
During your working years, you and the City contribute to provide Social Security benefits for you
and your dependents when you retire.
Social Security benefits add to your retirement plan benefits to provide income for your retirement
years. Throughout your working career, you and the City contribute annual amounts set by federal
law to provide Social Security benefits when you retire.
You may wish to check periodically with the Social Security Administration (1-800-772-1213) that
your records and earnings history are correct and complete.
Social Security law can change at any time. Updated and detailed information about monthly
payments, spouse and survivor benefits, and Medicare coverage is available from your local Social
Security office.
ADDING IT ALL UP
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 16
Your General Employees' Retirement Plan, along with Social Security, the Deferred Compensation
Plan, and/or the 401(a) Money Purchase Plan will provide income when you retire. The table on
shows some sample benefit payments at 20, 25, and 30 years of credited service.
The figures in the table on JIM illustrate how the Plan and Social Security work together for an
employee retiring in 2004 and earning $4,229 per month at retirement (final average monthly
compensation is $4,200). The Social Security benefit assumes the employee was continuously
covered by Social Security during all years of employment.
The "% of Pre -Retirement Compensation" figures show how the total amount of the combined Plan
benefits and Social Security benefits compares with the sample employee's pre -retirement
compensation. Most financial planners recommend replacing at least 80% of your pre -retirement
income when you retire. You may wish to check with Human Resources about other savings
options.
Final Average Monthly Compensation = $4,200 Per Month
Years of
GER
Social
Eligible
Plan
Security
% of Pre -
City Service
Benefit*
Benefit**
Total
Retirement
20
1,260
1,355
2,615
62%
25
1,575
1,355
2,930
70%
30
1,890
1,355
3,245
77%
* Your monthly benefit payment amount under the Life -Only benefit using
the formula shown on ?....,
** Social Security benefits are based on current benefit levels at time of
and may change in the future.
ADMINISTRATIVE INFORMATION
This Plan is sponsored by the City of Fort Collins and is administered by the General Employees
Retirement Committee (GERC).
Control and Administration
The City of Fort Collins sponsors the City of Fort Collins General Employees Retirement Plan,
which first became effective January 1, 1971, and was restated effective December 31, 2001 with
subsequent amendments through 2003.
The Plan is administered by the six -member General Employees Retirement Committee (GERC),
which includes the City's Director of Finance and five members appointed by City Council. Three
of the members other than the Finance Director must be employees covered by the Plan; the fourth
member may be either a Plan member or a tax -paying elector; and the fifth member must be a
retired member of the Plan who is receiving a monthly retirement benefit. The Committee oversees
the normal operations of the Plan and has full authority to interpret the Plan on all issues such as
benefit amounts and credited service.
Plan Permanence
The City intends to continue the Plan indefinitely, but continuance of the Plan is not assumed as a
contractual obligation of the City. The City Council reserves the right to alter, amend, or terminate
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 17
the Plan or any part thereof No alteration or amendment to the Plan shall permit any part of the
Plan assets to revert to or be recoverable by the City or to be used for or diverted to purposes other
than for the exclusive benefit of Members, Retired Members, Vested Members, or Beneficiaries
under the Plan, except, in the case of Plan termination, for excess funds due solely to erroneous
actuarial assumptions.
Effect on Employment
The Plan in no way guarantees you continued employment with the City. If your employment ends,
or if you are discharged, the Plan does not give you any right to any benefit or interest in the funds
in the retirement trust, except as specifically provided in the Plan.
Terminated or retired employees (receiving or continuing to receive retirement benefits, if eligible
under the Plan), may obtain employment with another employer without affecting earned retirement
benefits with the City of Fort Collins.
Assignment of Benefits
The Plan is intended to pay benefits to you or your beneficiaries only. Your benefits cannot be used
as collateral for loans or be assigned in any other way, except as required under a court order or as
required by law.
Retirement Process
o Notify supervisor of retirement date
o Supervisor will initiate separation form
o Contact HR to coordinate retirement payment with separation date and schedule exit
interview
o Meet with HR for exit interview
o Meet with ICMA to establish a benefit payment plan for your 401 and/or 457 Plans
File name: 2004 GMIN 09 02 Final
General Employees' Retirement Committee
September 2, 2004, Meeting Minutes
Page 18
Discussion Topic Number 3 Attachment: August 31, 2004, Investment Summary
General Employees' Retirement rian ,...a .. _ .,
�.I iJ MMW
Market Value at Prior Quarter End (06130/04)MAR
�$34E504,390
PLAN PORTFOLIO
RETURN
YTD 2004
BENCHMARK
RETURN
YTD 2004
YT s BENCHMARK PERFORMANCE
vALUEK(Mv) ET
MTotal f
FIXED INCOME
Fixed Income Portfolio
2.64%
5 year T-Note76%4,568
40°/GERP
MUTUAL FUNDSVanguard
-3.22%
-3.58%
.0.64%
0.38%
-1.89%
4.79%
1.04%
0.98%
4.73%
-2. 11%
Lipper Large Cap Growth
Lipper Large Cap Growth
Lipper Large Cap Value
S&P 500 Index
S&P 500 Index
Lipper MidCap Growth
S&P 400 Mid Cap
S&P 400 Mid Cap
Lipper MidCap Value
S&P 400 Mid Cap
Lipper Multi -Cap Core
-4.54%
-4.54%
1.73%
-0.69%
-0.69%
3.89%
0.11%
0.11%
3.43%
0.11%
-0.29%
1.32%0,458
0.96%1,689
-2.37%2,355
1.07%5,686
-120%8,288
0.90%5,355
0.93%5,980
0.87%41,870
1.30%38,687
2.59%61,233
-2.32%26,500
J$13,574,568
3°/American
6°/Fidelity
4°rVanguard
5°iFederated
1 °'Brandywine
49Vanguard
29Meridian
59Fidelityalue
6°MutualSaresFund2.70%
6`.n,r„�
2°
Growth Index
Amcap Fund A
Equity Income II
500 Index
Capital Apprec.
Mid Cap Index
Value Fund
Fund
Fmorninn I enders
Domestic Mutual Funds
Dreyfus Prem. Emerg Mkts
Julius Baer Equity Int'I A*
TRIP International
TRP New Asia Fund
International Funds
Total Mutual Funds
TOTAL PORTFOLIO
0.01 %
2.38%
EAFE
-2.13%
EAFE
-2.18%
Lipper International Fund
-2.23%
EAFE
-1.78%
-0.40%
-0.06%
$15,278,101 45'
-0.19%
2.57%
$636,112 2'
-2.83%
0.70%
$1,231,475 4'
0.99%
-3.17%
$1,818,361 5'
-0.19%
-2.04%
$1,142,857 3'
$4,828,805 14
$20,106,906 60
$33,681,474 100'
File name: 2004 GMIN 09 02 Final