HomeMy WebLinkAboutRetirement Committee - Minutes - 09/17/1998AdmAktrative Services
Finance Administration
City of Fort Collins
FORT COLLINS GENERAL EMPLOYEES RETIREMENT COMMITTEE
September 17, 1998 MEETING MINUTES
Approved as Amended, November 5, 1998
COUNCIL LIAISON: Mayor Ann Azari
COMMITTEE MEMBERS PRESENT: ABSENT:
Jim Hume, 221-6776
Susan Lehman, 221-6813
Alan Krcmarik, 221-6788
Patti Teraoka, 221-6715
Kevin Westhuis, 221-6156
OTHERS PRESENT:
Russ Proctor, Watson Wyatt Worldwide, the City's actuarial firm
Deb Weedman, (Staff Support — Human Resources)
Greg Tempel, (Staff Support — Legal)
Julie Depperman, (Staff Support — Investments)
Sue Wilcox, (Staff Support — Clerical)
Gary Lopez, member from Building and Zoning
Robert P. Christiansen, member from Parks Maintenance
CALL TO ORDER: Chairperson Kevin Westhuis called the meeting to order at 1:20 p.m.
APPROVAL OF MINUTES: Alan distributed the GERC meeting minutes for July 21, 1998 at a
previous meeting. Patti Teraoka moved that the minutes from the July 21, 1998 meeting be approved as
distributed. Alan Krcmarik seconded the motion, which passed unanimously (5-0).
Alan also distributed the minutes of the August 6, 1998 GERC meeting at a prior meeting. It was noted
that the Under "APPROVAL OF MINUTES" the word "approve" should be "approved". Susan Lehman
moved that the August 6, 1998 GERC meeting minutes be approved as corrected and Jim Hume seconded
the motion, which passed unanimously.
The minutes from the August 20d' and September 3rd meetings should be available for the next meeting,
scheduled for October 15, 1998.
DISCUSSION TOPICS:
1. GERC PLAN MEMBER(S) COMMENTS/CITIZEN PARTICIPATION:
There were no Plan member or citizen comments.
2. APPEALS RELATED TO DB/DC SELECTION PROCESS
MAIN POINTS: Chairperson Kevin Westhuis read the Appeal Hearing Introduction which set forth the
process that would be followed and outlined the circumstances or conditions that would permit the
300 LaPorte Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782
_i
September 17, 1998, GERC Minutes
Page 2 of 4
extension of the DB/DC selection deadline for the individuals who wished to have their selection
accepted. The basic criteria was that through no fault of the employee, the selection form was not filed in
Human Resources ("HR") by the deadline, August 14, 1998 at 5:00 pm. The appeals were audio taped.
The following members were sworn in and their appeals heard:
A. Robert P. Christiansen, Parks Maintenance: HR did not receive a selection form from Robert,
although he said that he had received the packet of information and sent his selection form through
interoffice mail near the end of July or the beginning of August. It was never received by Human
Resources. In addition, staff discovered that Robert's Social Security Number was incorrect on the call
list used to contact members whose forms were late. Robert stated he did not keep a copy of the selection
form and, in fact, returned the whole packet, including the form. His name was on the sign -in list for one
of the July information presentations at City Hall, but he had not initialed next to his name on the
computer printout.
CONCLUSION/NEXT STEPS: Susan Lehman moved that extenuating circumstances justified
extending the deadline for Robert's election form to Friday, September 181h, based on the criteria being
recommended to City Council. Jim Hume seconded the motion, which passed unanimously.
B. Gary Lopez, Building and Zoning : Gary had presented an appeal at the last meeting, but wished to
clarify his reasons for his request to extend the deadline. Kevin Westhuis stated that he felt it was in the
best interest of the Plan member for the GERC to hear his additional information. Gary explained that he
planned to take vacation the week of August 10-14 (the week of the selection deadline) and August 17-
21. During the weeks preceding this, the work load in his 2.5 person office increased considerably
because of CSU students returning earlier than usual and a larger than usual number of complaints about
illegal apartments. In addition he was preparing for a trial the day after he returned. There were also a
number of calls related to the implementation of City Plan. Gary did plan to submit his form early, but
when the deadline was extended and the stock market became more uncertain, he delayed his decision.
CONCLUSION/NEXT STEPS: Jim Hume moved that there were no extenuating circumstances and an
extension should not be granted, based on the criteria being recommended to City Council. Kevin
Westhuis seconded the motion. The vote was 5-0 in favor of the motion. Extension denied.
C. Other Possible Appeals. Deb Weedman noted that Crystal Strouse's selection form reached HR late
afternoon on Monday, August 17s'. Crystal initially asked for more information, but couldn't be reached
before the deadline. Deb will invite her to the October 151' meeting to present an appeal if she wishes.
Stephanie Howell sent the members a request to change her decision. While her reasons may reach
beyond the timing of her initial selection, she will be allowed to present her case at the October 1 meeting
also. Estelle Galin (Transportation Services) did not vote but instead left a message with the HR
receptionist indicating she wanted to "stay" in the money purchase plan, which was no longer an option at
that point.
3. DB/DC CHOICE PROCESS
MAIN POINTS: The next step in the process involves the conversion of GERP funds to the ICMA MPP
plan for those wishing to do so. Theresa Myers had provided a tentative schedule of the steps involved
and the time needed for the conversion. However, this 26- week process can be shortened somewhat
because the City is its own Plan administrator.
Greg Tempel prepared two resolutions to allow the conversion for the GERC to review. The first amends
the GERP to allow for the conversion. The second identifies amendments to the 401(a) money purchase
plan agreement with ICMA RC necessary to allow for the conversion and the new contribution rate. This
• *September 17, 1998, GERC Minutes
Page 3 of 4
topic has been discussed with the Council Finance Committee and will be presented to City Council on
October 6 s. Alan Krcmarik will prepared the agenda item summary. Jim Hume, Russ Proctor, and Alan
will plan to attend the meeting. Alan advised that the resolutions would probably be on the Council's
consent agenda.
The Committee anticipates that the 4.5% contribution outlined in the proposed resolution would remain
the same for both the GERP and those who move to the money purchase plan. If assumptions that
determine the GERP contribution rate should change, then changes can be requested from City Council
for both plans.
Deb Weedman reported that of the people wishing to move to the Deferred Contribution (DC) Plan, 20
currently do not have MPP accounts, although some do have ICMA RC 457 accounts. Methods of trans-
ferring the money from the GERP to the various accounts were discussed. The GERC members agreed
that this would involve educating the prospective DC members about the transfer and their options.
Russ Proctor still plans to run a report every month to assess the movements in the stock market and how
such movements affect the valuation of the Plan. The valuation of the Plan affects the normal
contribution amount and the decision to make the conversion.
CONCLUSION/NEXT STEPS: Alan stated that a committee would be set up to do the administrative
groundwork for the conversion. He outlined the following people as the core City staff members: Julie
Depperman (who will try to coordinate the group), Bob Eichem, Sue Wilcox, Alan Krcmarik, and
someone from the Accounting Division staff from Finance; Deb Weedman and Gwen Feit from Human
Resources; Kevin Westhuis as GERC Chair; and Theresa Meyer and others representing ICMA RC. Due
to Gwen's busy schedule, Deb will discuss this with the Human Resources staff to see if there is another
person who can work with the Conversion Committee also. Julie will coordinate this with the Finance
staff.
4. ELIGIBILITY OF DISABLED VESTED MEMBERS FOR BENEFITS
MAIN POINTS: Greg has prepared a resolution regarding single -sum payments to disabled vested
members of the GERP. The Committee and staff reviewed and suggested changes to the proposed
resolution. The resolution would allow single -sum benefits for disabled vested members.
The Committee members also discussed the conditions surrounding the requests that have been received
from several members with vested benefits, one disabled and one, according to the requestor, no longer is
receiving disability benefits. The discussion focused on the interrelationship of GERP single -sum benefit
payments and other forms of disability benefits and possible offsets. Deb Weedman provided a copy of
the Sun Life disability claim process.
CONCLUSION/NEXT STEPS: Alan will prepare an agenda item summary. The item will be
schedules for Council action on October 6 s. It should be a consent item. No further action needed at this
time.
5. QDRO REQUEST
MAIN POINTS: Greg Tempel reported that a request for information had been received concerning the
division of GERP benefits in a divorce action. Greg said he provided some explanation of the process
and copies of the sample forms to the individual.
September 17, 1998, GERC Minutes
Page 4 of 4
Deb Weedman advised the Committee that she had discussed a similar situation with another employee,
but had no details at this time.
CONCLUSION/NEXT STEPS: This topic will be moved to 1999. hi the meantime, if completed
forms are received, Greg will advise the Committee on how to proceed. No action needed at this time.
AGENDA AND SCHEDULE FOR NEXT MEETINGS
The next meeting will be Thursday, October 15, 1998 at 1:15 p.m. in the Council Information Center
(CIC) of City Hall West. The agenda will include:
1. DB/DC Selection Form Appeals
2. Consider approving the August 20, 1998 minutes
3. DB/DC Discussion
4. ICMA Conversion Report & Timeline
5. Vested Single -Sum Benefits for Disabled
6. Work Plan for 1999
7. Regular Investment Review
ADJOURNMENT
The meeting was adjourned at 2:40 p.m.
GERC/GERP WEB PAGE ADDRESS:
www.ci.fort-collins.co.us/CITY HALL/BOARDS COMMISSIONS/RETIREMENT/index.htm
FUTURE MEETING SCHEDULE:
The General Employees Retirement Committee normally meets at 1:15 p.m. on the I' Thursday of each
month in the Council Information Center, City Hall West.
THURSDAY, NOVEMBER 5, 1998
THURSDAY, DECEMBER 3, 1998
THURSDAY, JANUARY 7, 1999
THURSDAY, FEBRUARY 4, 1999
THURSDAY, MARCH 4, 1999