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HomeMy WebLinkAboutRetirement Committee - Minutes - 02/08/1985CITY OF FORT COLLINS • FINANCE ADMINISTRATION GENERAL EMPLOYEES' RETIREMENT COMMITTEE Minutes of Meeting, February 8, 1985 Council Information Center Members Present: Members Absent: Jim Harmon Don Botteron Deb McClurkin Mollie Mercer Angie Powell None The meeting was called to order by Chairman Botteron. A review of the Retirement Plan was requested by Mollie Mercer in the areas of Credited Service, Death Benefits, and Part -Time Benefits. A. Credited Service - Mollie's question was whether the Board makes any determination if a break in service occurred prior to 1981 or prior to 1971 when the first Pension Plan was adopted. Don Botteron referred Board Members to VI-2, Section • 6, Accrued Credits and Vested Benefits Under the Previous Plan Preserved and IV-1, Section 2, Breaks In Service. Ruling that the Plan specifically answered Mollie's question, there was no vote by Board Members. As a future reference for clarification purposes, employees who retire but who have breaks in service, a specific memo relating to the breaks in service will be filed in the Pension file. 3 C Death Benefits - Mollie was interested in-hearing.a summary of how the age of 55 came to be the second determinant for death benefits. Don Botteron provided a summary expressing that prior to the 1981 Plan revision, death benefits for employees who were 55 were not provided because the City provided a life insurance benefit instead. Don continued, explaining death benefits under our current Plan, Article VIII, Section,l, Death Benefits. Jim added that if the Member's spouse is more than 5 years younger than the Member, the monthly benefit to, the spouse will be reduced actuarially to reflect the age difference. Part -Time Benefits - A discussion regarding part-time benefits FINANCE ADMINISTRATION 300 LaPorte Ave.. P.O. Box 580 . Fort Coll1r5, Colorado 80522 . 1303) 221-6788 General Employees' Retirement Committee •February 8, 1985 Page 2 was had. Part-time benefits are not stated in the General Employees' Retirement Plan, but according to Resolution 81-120, a restatement was made in the Plan by A.S. Hansen. Jim suggested staff support Carolyn Jones investigate into the matter with the City Clerk's office and contact A.S. Hansen. This item will be tabled until the next meeting. Discussion regarding Investment Specialist/Summary of Investment Fund was had. This topic was being discussed as a follow-up regarding an investment consultant. The discussion commenced with Angie Powell expressing concern whether investments were being handled as well as they could be. A memo written by Revenue Officer Gwyn Strand, which was distributed to Board Members prior to this meeting, summarized the Investment Program's objectives and types of investments, and included a spreadsheet describing the book values, coupon rates, and estimated annual income. Board Members were referred to this memo by Jim Harmon. Angie expressed that she was hoping for a statement with comparative figures that were in -line with market conditions. • She was interested in investments "going aggressive with an overall conservative portfolio". Angie would like to see more time and money spent on the Investment Fund, possibly hiring an outside consultant as discussed a couple of years ago. Don Botteron interjected that years ago the City had an Investment Advisory Committee who managed the Retirement Fund, but the Committee disbanded because City personnel started managing it. Jim Harmon gave an explanation of the City's portfolio as well as a summary of how the City invests its monies. Jim also explained that the Pension Fund is just a small piece of a big investment "pie" and that the investments were securely managed, with two to four staff members working daily on the City's portfolio. Angie questioned if staff was reviewing past investments. Jim's answer was affirmative, and he gave a review of past investment actions. Don Botteron requested that Board Members receive more information, for example, Quarterly Reports, etc., so that they may know current investments and their return, investment strategy, and soundness of investment. It was mentioned that while Ron Wood was on the Board, no reports had been made available to Board Members. Jim Harmon assured Board Members would receive all pertinent and necessary information. 40 Based on the information provided in these reports, Board Members General Employees' Retirement Committee February 8, 1985 • Page 3 voted that the Board review the documents and evaluate the current situation. Discussion of hiring an outside investment firm will be discussed following Board Members' evaluation. The next item on the Agenda was discussion of the election of a new chairperson. Don Botteron felt he should step down from that role and give someone else a chance. Don has been serving in the capacity of Chairperson since 1982. Jim Harmon nominated Deb McClurkin as Chairperson until her term is up (Summer of 1985), with Angie Powell acting as co -chairperson. Nomination for Deb McClurkin seconded by Angie Powell; nomination for Angie Powell seconded by Mollie Mercer. Other items not on the agenda included whether the General Employees' Retirement Plan be redone altogether. Don asked for Board Members' input. Deb McClurkin suggested that should the Board decide on redoing the Plan, that it be approached by looking at the Plan in segments versus the whole Plan. Angie suggested exploring the policies as provided by A.S. Hansen. • Jim Harmon mentioned that research be done on various pension plans and changes and then proceed accordingly. Board Members agreed, and the item was tabled until further investigation is completed. Board Members voted unanimously that the General Employees' Retirement Committee would meet quarterly or as needed. With no further business to discuss, the meeting was adjourned. APPROVED: Jan s H. Harmon, CPA Director of Finance Don Bott oyairman Secretary's Note: Photographs were taken for the Boards & Commissions meeting to be held on February 22, 6:00 pm. • /cj Attachment cc: John Arnold, City Manager