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HomeMy WebLinkAboutRetirement Committee - Minutes - 09/21/1989GENERAL EMPLOYEES RETIREMENT COMMITTEE MEETING MINUTES SEPTEMBER 21, 1989 1:00 P.M. MEMBERS PRESENT: Jerry Brown Mollie Mercer Alan Krcmarik Angelina Powell Dennis Sumner Sue Wilcox, Secretary CALL TO ORDER: Chairperson Dennis Sumner called the meeting to order at 1:10 P.M. APPROVAL OF MINUTES: No minutes were available from the September 14th meeting. ITEMS OF NOTE: Sumner advised the committee that earlier in this day the Mayor and Assistant Mayor hosted a breakfast for both board and commission chairpersons. The purpose of the breakfast was to give the various City boards and commissions an overview of the City Council goals for the next 18 or so months. Also, to provide a pep talk to boards and commissions about their importance to the successful functioning of the City and the City Council. Thirdly, to encourage cross -communication among the various boards and commissions. On the topic of City Council goals and objectives a handout was provided and copies of this were later distributed to GERC committee members. Although no items of particular note with the GERC activities were cited, the committee appreciated the City Council's effort to disseminate this information. Concerning expanded communications among the various boards and commissions the idea of meeting with the Personnel Board to discuss the study of a defined contribution plan was mentioned. Sumner noted that at the morning meeting he approached the chairperson of the personnel board as well as Jaime Mares to explore the possibility of such a meeting. Both were very receptive to the idea and invited the GERC to join them at their November 21 meeting at 11:30 held in the Employee Development Conference Room. Members felt this would be appropriate and we are planning on joining this meeting. AGENDA REVIEW: Jerry asked that the topic of a potential cost of living adjustment for retirees be included in the agenda for this meeting if time permitted. 01 1. TOPICS - OPEN ITEMS MEDICAL BENEFITS FOR RETIREES/DISABLED EMPLOYEES. MAIN POINTS: Mollie advised the GERC that the task force concerned with this issue has met. They are preparing a memorandum to the executive team explaining their concerns with this subject in proposing priorities for a work plan. This Memo is to be sent 9/26/89 and the committee will have its next meeting on 10/26/89. DECISIONS/CONCLUSIONS: The GERC asked Mollie to continue her involvement with this committee and keeping the GERC advised of its status. NEXT STEPS: No actions were required or taken. 2. THE STUDY OF DEFINED PLAN. MAIN POINTS: The committee attempted to pick up with the "To Do" list that was generated at the 9/14/89 meeting. Various methods of priortizing or categorizing the steps in this list were explored. DECISIONS/ CONCLUSIONS: It was concluded that five major categories could be established and the items from the "To Do" list could be sorted within these categories. The categories and sorting of the "To Do" list follows, please note the numbers correspond with the 9/14/89 "To Do" list: I. Communicate the Purpose of this Study: 1. Clarify issues. 2. Educate Employees. 6. Keep City Council posted. 11. Options and modifications -- review with other municipalities, the PD, etc. 16. Determine priorities. II. Collect Data: 8. In-house computer work on the dollar amounts. 9. Explore employee contributions to the plan. 10. In-house test runs (of different rates of return, etc.). III. Preliminary (Vote) by Employees: 5. Vote or decide in an interactive process (shadow votes). IV. Detailed Calculations for Employee Evaluation: 3. Get financial counseling for each Employee. 4. Develop an actuarial study showing the dollars for each Employee. 2 15. Determine how to administer the plan. 17. Set up a cut-off date for use in actuarial projections. Determine other assumptions also. V. Final Acceptance or Rejection of Defined Contribution Plan: 12. Survey Employees/final vote. 7. City Council final approval (the last step in the process is seen as final approval or rejection by City Council). VI. Implementation: *13. Deal with vested/terminated people. *14. Deal with retirees. *It was concluded retirees as well as vested/terminated employees have a right to the current plan which must be honored. However, if the plan is changed these people may choose to participate in the change and it would be desirable to give them that option. NEXT STEPS: A time line and task assignments for the activities as noted above needs to be developed to begin this evaluation. 3. COST OF LIVING ADJUSTMENT FOR RETIREES. As time was running short this item could not be discussed at this meeting. AGENDA & SCHEDULE FOR NEXT MEETING: The topics left on the agenda for the next GERC meeting are to continue the discussion on the Defined Contribution Study and the Cost of Living Adjustment for retirees. The next meeting was scheduled for 10/26/89 at 1:00 P.M. in the Finance Conference Room. ADJOURNED: The meeting was adjourned at 3:02 P.M. M