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HomeMy WebLinkAbout2012 - Retirement Committee - Annual ReportGENERAL EMPLOYEES’ RETIREMENT COMMITTEE 2012 Annual Report to City Council  Prepare 2011 GERC Annual Report for City Council prior to January 31, 2012. Completed prior to January 31, 2012.  Elect Officers and Review GERC standing rules in February, 2012. Elections took place as required. Angelina Sanchez-Sprague was elected Chair and Jim Lathrop remained Vice-Chair. Review of GERC bylaws was completed and a couple of minor changes were implemented.  Continue Monitoring of Retirement Plan and the appropriate level of contributions. The preliminary Actuary Report for year end 2011, including the assumptions used by the Actuary, was reviewed by the GERC at the March meeting. As a result of the review, the GERC revised the future expected investment return assumption to 6.8% from 7.5%. The impact of the change added $3.7 million dollars to the unfunded actuarial liability of the Plan. As a result of the change, City management requested at the March Council Finance Committee meeting an increase in the City supplemental contribution to $1,120,000 from $740,000.  Revise actuarial assumptions prior to April 1, if necessary for the 2012 Report. The actuarial assumptions were reviewed at the March meeting. The Investment Return assumption was changed to 6.8% from 7.5% based on a review of investment return history for the Plan and the actuarial model for return expectations for an investment portfolio with a similar asset allocation.  Distribute ‘Personal Retirement Planning Statement’ forms in April 2012. The ‘Personal Retirement Planning Statement’ was reviewed at the February meeting. The GERC decided to simplify the statement by including GERP data only and eliminating information related to projections for ICMA and Social Security. The statements were distributed to active GERP participants in April 2012.  Review Quarterly Investment Reports. The quarterly investment reports were reviewed by the committee to verify that the investment portfolio is in compliance with GERP policy. Changes to the portfolio were also reviewed along with investment performance.  Review IRS response and submit for Council approval within 90 days of receiving IRS approval. The revised Plan document was reviewed and approved by the GERP Committee at the June 14 th meeting. The approved Plan document was sent to City Council for adoption at the July meeting.  Review contract for renewal of actuarial consultant services in June, 2012. The Milliman contract for actuarial services was reviewed and extended for an additional year.  Prepare Work Plan for 2013 by November 30, 2012. The work plan for 2012 was completed and submitted to the City Clerk by November 30, 2012.  Provide educational opportunities for GERP members when needed. No additional educational training was provided.  The website for the General Employees’ Retirement Committee shall be monitored, updated as needed, and the minutes will be posted once they have been approved and signed. The website was monitored and updated as needed and the meeting minutes posted by the staff liaison. Other General Employees’ Retirement Committee Business: Minutes for the following topics are available on the City website.  Revised General Employees’ Retirement committee By-laws (February meeting).  Revised the Plan regarding future Plan distribution of active, retiree, and citizen committee members (August meeting with preliminary discussion at May/June/July meetings).  Revised the “Plan Summary” and posted on the intranet (October meeting with preliminary discussion at August meeting).  Reviewed an Actuary report of the estimated impact of allowing in-service distributions from the General Employees’ Retirement Plan. After review, no revisions to the Plan are recommended (December meeting with preliminary discussion at August meeting).