HomeMy WebLinkAboutRetirement Committee - Minutes - 02/29/1976• MINUTES
CITY OF FORT COLLINS
EMPLOYEES RETIREMENT BOARD
FEBRUARY 9, 1976
MEMBERS PRESENT: John D. Hartman, Warren Dalke, Phillip Shade, Jack Williams,
and Charlie D. Cain
OTHERS: Tom McComb
Actuarian Tom McComb met with the Employees' Retirement Board to review the
study as submitted. Mr. McComb reviewed some of the assumptions used in the
report.
Items he specifically brought to the attention of the board were:
The funds of the pension need to be invested at a rate of return 3% higher
than the increase in the cost of living.
The unfunded liabilities from June, 1974, the last actuary study, to August 31,
1975, have increased 53.6%. We currently have $1,387,000 obligations more than
we have funds to meet. The current entry level of contribution is now 4.276
and the study suggests this be increased to 5.7%.
• It is Mr. McComb's opinion that an inflation rider not be adopted at this time.
Mr. McComb suggested the board consider the possibility of portability.
Jack Williams moved the board accept the report as written. The board recommends
to the Council that they recognize there is a problem and the Council should
start considering now how to fund the unfunded liability. The motion was seconded
by Phillip Shade and passed unanimously.
Personal liability of board members was discussed as it relates to the pension
board. It was felt that an ordinance relating to errors and omissions be
discussed with Art March, Jr. and some action should be taken.
The definition of base salary as a means of calculating retirement benefits
was discussed. The prime concern was whether contributions to the ICMA plan
should be included in the salary figure since this amount does not appear on
tax forms. Charlie Cain is to discuss this with Art March, Jr. and report to
the board.
Meeting adjourned.
/I
. Charlie D. Cain.