HomeMy WebLinkAboutRetirement Committee - Minutes - 03/12/2020General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES’ RETIREMENT COMMITTEE
MINUTES
MARCH 12, 2020
215 N. MASON - CONFERENCE ROOM 2A - 11:00 AM
Committee Members Present: Clark Mapes, Chair
Kelley Vodden, Vice Chair
Del Bernhardt
Jackie Darner
James Lathrop
Ralph Zentz
Others Present: Joel Stewart, Milliman
Brian Nichols, Milliman
Blaine Dunn
Jenny Lopez Filkins
Carolyn Koontz
___________________________________________________________________
Meeting called to order at 11:00 am
1. Citizen Participation and Plan Member Comments - none made or noted.
2. Plan Participant Updates (Blaine Dunn)
3. Consider approving the minutes from the meeting of February 13, 2020.
A motion to approve the minutes was made by Del Bernhardt.
Ralph Zentz seconded the motion. Minutes approved as presented.
4. Review Annual Actuarial Valuation Report
(Brian Nichols and Joel Stewart from Milliman)
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A question asked was whether a participant can retire and defer the start of their monthly benefit
payments. If a participant leaves employment with the City, they become terminated vested.
Payments would reach a maximum when they are 65. If a participant continues working in
employment covered under the plan beyond age 65, the benefit will continue to grow by the
additional service and increases in final average earnings (if any). The benefit amount is not
going to change if the participant is not accruing service under the plan and defers payment
beyond age 65 - they will just have lost benefits since they became 65. Once a participant is
over 65 the factor decreases for the lump sum calculation. If the participant is a terminated
vested participant, the final average compensation is frozen at a point in time.
Council appropriates every year the amount of the supplemental contribution (currently $1.12M
per year). The GERC could make a recommendation to maintain a higher funded status or
increase the supplemental contribution. Council contribution is distributed across funds based
on where plan participants work / worked, not only the General Fund
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The unfunded liability decreased from January 1, 2019 to January 1, 2020., primarily due to
outstanding investment performance in 2019.
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In 2039 the plan achieves full funding. The plan does not include a COLA.
In 1999 and 2010 members could opt out - in 2010 many members elected to freeze and move
funds over to their 401 Plan. Their years of service stopped 12/31/2010. Contribution used to
be 4%.
Blaine Dunn: market risk is very high for GERP. In 2019 finance staff looked at what resources
might be available to bump the supplemental contribution up to $1.35M. GERC and Staff will
continue to monitor plan insolvency and may consider recommending an increase to Council
Finance in future years to accelerate the plan’s projected full funding date.
A motion to approve the Actuarial Valuation Report was made by Ralph Zentz. The motion was
seconded by Del Bernhardt. Motion passed unanimously
5. Monthly Investment Report (Blaine Dunn)
More downward movement since February – Covid 19 impact to the economy
4.5% down. Would like to not sell at the bottom. Some of the uptick – move some into cash.
We have had similar scares before – the markets drop and rebound higher than where they
dropped from – we are at the back end of a very log expansion – could be the tipping point to
send us into recession - cash due only to market fluctuations. Bonds are not doing well and are
at historic lows (no income to be gained in the bond market currently).
If document was prepared today - $27.8M - lost $2.3M since February.
$44.7M valuation - looks like other health scares historically
China improvement will help as it will show other countries how long to expect this to last
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Big impact in 2-4 months - how long it takes them to get everything up and running
Preventative measures here in the US
6. Other Business - none
Meeting adjourned 12:29 pm.
Clark Mapes, Chair
Carolyn Koontz, Staff Liaison
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