HomeMy WebLinkAboutRetirement Committee - Minutes - 11/09/2017Ci
Connurrree MemaeRs PResenr:
Cotvttutrree MeMaeRS ABSENT:
OrHeRs PReserur:
ffbo[ins General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221 .6782 - tax
fcgov.com
Genenal Enn ptoyees' Rettneuerur ConnnalrrEE
Mruures
NoveMeeR 9,2017
1 :"15 - 2:30 pt:
215 N. Mnsoru - Rooru 2E
John Voss, Chairman
Bill Switzer, Vice Chairman
Delbert Bernhardt
Clark [Mapes
John Lindsay
James Lathrop
Harold Hall
Jenny Lopez Filkins
Travis Storin
Carolyn Koontz
Janie Appleton
Meeting called to order at 1:15 pm.
1. Citizen Participation and Plan Member Comments
John Voss; Council person reached out to Mike Beckstead to discuss GERP. A meeting
has been scheduled with Bob Overbeck, Harold Hall and Mike Beckstead.
2. Approval of Minutes from the meeting of October 12'2017
The minutes for the October 12th GERC meeting were approved unanimously
3. Possible executive session to discuss previous plan administration decisions with
city attorney assigned to advise GERC - Previous plan interpretation impacted three plan
members. Travis Storin - policy interpretation changed this year - has been the same for
many years. Members are required to take a benefit at age 70.5 per IRS regulations. The
previous incorrect interpretation of the plan was that at normal retirement age of 65, if a
member didn't notify the Plan Administrator prior to age 65, their distribution option was
limited to single life annuity / no survivorship. Current interpretation of the plan document is
that members are not required to take single life annuity at age 65 and members are given
all options discussed in plan. Under the previous interpretation, three members defaulted to
single life annuity upon reaching age 65.
Members over age 65 are not required to take a benefit until age 70.5. Note that it's in the
member's interest to begin distributions at age 65, as there are not additional benefits
accrued in between ages 65 and 70.5. Members will receive a letter (see agenda item #5) at
-ral't"\zra-\ b"thns
6
age 70.5 telling them they need to take a benefit per IRS regulations. Committee to adjourn
to Executive Session if the Committee members have legalquestions. Clark Mapes made a
motion to go into Executive Session. Bill Switzer seconded the motion. The GERC went
into Executive Session at 1:40 pm. Executive session statement from attorney recorded.
Regular GERC Meeting was reconvened at 2 pm. Executive session statement from
attorney recorded. Chairman John Voss is sympathetic but believes the GERC should not
change any administrative actions previously completed. Actions were in good faith. Clark
Mapes and Del Bernhardt agree with John Voss. Clark Mapes moved that the Committee
recommend no further formal action related to the previous overpayment and other
administrative decisions.
John Lindsay seconded the motion and it was passed unanimously.
4. Consider whether to take formal action or reconsider formal action related to
previous overpayment to a deceased member and other plan administration
decisions (Jenny Lopez) see above
5. Finalize the 70.5 notification letter (Janie Appleton)
Age 65 letter was approved in lt/arch (attached). Age 70.5 letter (copy attached is reviewed
and considered. The purpose is notification to a GERP member that IRS requires that they
take a benefit. John Voss made a motion to approve the Age 70.5 letter in the form as
presented. Bill Switzer seconded the motion and the motion was approved unanimously.
Monthly investment and other reports (Harold Hal!)
YTD return is 15.49% - beat all benchmarks
Total market value of cash and investments is $47,940,032
Fixed income investments accounted for 30.3% of the portfolio's market value.
Domestic and foreign equity funds represent 52.7"/" and 17.8o/o respectively.
Asset allocation targets are; Fixed income 407o, Domestic mutual funds 45"/" and Foreign
mutual funds 15%. The Plan investment policy allows for a variance of 10 percent above or
below each of the stated targets.
Other Business
Fiduciary Training tentatively scheduled for our January 11,2018 meeting for one hour.
Meeting time will be extended from 1:15 - 3 pm to accommodate the training.
Janie Appleton said the locator service has been very helpful. We make every effort to locate
and contact members.
Meeting adjourned al2:O7 pm
7
John oss, Chairman
2
Carolyn Koontz, Staff Li