HomeMy WebLinkAboutRetirement Committee - Minutes - 04/10/2008GENERAL EMPLOYEES' RETIREMENT COMMITTEE
MINUTES
APRIL 10, 2008
1:15 To 3:00 P.M.
215 N. MASON —ROOM 2A
COUNCIL LIAISON: Councilman Ben Manuel COMMITTEE MEMBERS PRESENT: Jim O'Neill, Chair, 221-67719(-��� �-4
Charles Seest, 221-6795
Bill Switzer, 221-6713
Rick Richter, Vice Chair 221-6798
Jim Lathrop
Dennis Freeburg
COMMITTEE MEMBERS ABSENT:
OTHERS PRESENT:
Meeting called to order at 1:15pm.
Pat Kahle, Milliman Actuarial
Joel Stewart, Milkman Actuarial
Harold Hall, 221-6784
Tracy Hoffman, 221-6747
Heather Shepherd 221-6788
Citizen Participation and Plan Member Comments
Bill Switzer had a question from a member who wanted to know if pre-tax dollars used calculating the
income in the actuarial formula. Pat said that the amount used is before taxes.
Jim 0. informed the Committee that on the last Personal Retirement Planning Statements, the ICMA
had switched some column heading information in error, but it will be fixed by the next mailing.
Consideration and Approval of Minutes from the March 13' Meeting
Jim L. moved to approve the minutes and Dennis seconded the motion. The motion passes
unanimously.
where renewal is a way of life
Actuarial Report Review
Pat and Joel from Milkman reviewed the 2008 actuarial valuation for the General Employee's
Retirement Plan and can be summarized as follows:
The market value of assets as of January 1, 2008 is $45,770,541. The actuarial value of assets
is $42,339,892. The funded ratio is 88.6%. There are 235 active employees covered by the
plan, 131 Terminated Vested, and 159 retired members. The amount of annual required
contributions decreased from 11.2% in 2006 to 9.57% in 2007. Based on the current budget of
contributing 4.5% of compensation and additional contributions of $400,000 in 2008/2009, and
$700,000 for 2010 through 2014, the plan will be fully funded. This is a reduction in the 7 years
of additional contributions projected at the end of 2006.
Bill asked, since it appears that there will be money left in the Plan when the last person
retires or is paid out, why continue making the payments at the current rate? Why not pay less
now so there will be less left over? Pat responded that putting these amounts in at this earlier
time is to ensure that the money will not run out before the last member retires.
Ben questioned the equity between Employees who are in the plan and people who are not
because the plan is now closed. It seems the City is putting in extra money/payments in just
for GERP and not for all employees. Pat said that the plans are fundamentally different, with
one being a defined benefit, and one being a defined contribution.
Monthly Investment Report
Harold reported a continued deterioration in the economy. This month YTD return for the Plan
is -5.4%. The current fixed income portion is now 38% higher than in previous times so that is a
positive factor. The SEW was down 9% YTD, and GERP was only down 5.4%.
Other Business
None
Jim L. made a motion to adjourn the meeting at 2:35 p.m., and Rick seconded the motion.
Motion carried unanimously.