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12-13-2006 'Nome 4.usi GENERAL EMPLOYEES PENSION BOARD REGULAR MEETING DECEMBER 13, 2006 10:00 A.M. PLANNING DEPARTMENT CONFERENCE ROOM MINUTES CALL TO ORDER: Vice - chairwoman Dewees called the Regular Meeting to order at 10:17 a.m. in the Planning Department Conference Room. ROLL CALL: Members present were Brenda Dewees, Robert Polizzi, Christi Moeller, Brett Tanner and Rob DeLoach. Also present were Donna Looney, Interim Personnel Director; Jack Ascherl, Agent of Record; Jim Robinson, Investment Specialist & Dee Finneran Principal Financial Group, Inc. and Kathy Miller, Recording Secretary. Harriet Rhodes and Tyna Hilton were absent. APPROVAL OF MINUTES: Special meeting of August 2, 2006 Mrs. Moeller made a motion to approve the August 2, 2006 minutes, second by Mr. DeLoach. MOTION CARRIED 5 -0 Special meeting of September 20, 2006 Mr. DeLoach made a motion to approve the September 20, 2006 minutes, second by Mrs. Moeller. MOTION CARRIED 5 -0 Viewing the September 20, 2006 minutes: Mr. Ascherl indicated that after viewing the September 20, 2006 minutes, there were two things that came out of that previous meeting that the City Manager was interested in, which are (1) Principal is prepared to do the Termination Study of the Plan, but this can not be done until the Actuarial Evaluation has been complete. The data has been sent to Principal and they are working on it. As soon as this is completed Principal will start the Termination Study. (2) The City also requests to have the Projection done each year by July 15 before their final budgeting. Mr. Ascherl indicated it wouldn't be a precise number but will be in the ballpark of what's expected for the coming year. Noe Termination Study: Ms. Moeller requested to know what the Termination Study was? Mr. Ascherl explained that its looking at options of the best thing to do with the Plan, it's a closed Plan, where there are no new people coming into it which makes it unique. Mr. Ascherl said it appears that approximately 80% of the employees for the City could retire if they wanted to so it has to be pretty conservatively invested to cover that. Mr. Ascherl continued saying that was one of the options where you could terminate the Plan and in doing so there would be no more accrued benefits in the Plan. The City could come up with a lump sum to fund it in order to terminate it or they could freeze it affectively, and then pay off any final cost in funding the existing, at that time, value of the Plan for each person, all of their vested benefits. Mr. Ascherl indicated the City says they don't want to upset employees but it's still a study they want done. Ms. Moeller stated, " that would be like buying us each an annuity, closing the Plan and terminating it at this point." Mr. Ascherl said, "that was correct, the accrued benefits that have been earned, at that point, is guaranteed. Mr. Ascherl said the study was done many years ago and the City would have had to come up with about three hundred thousand dollars to fund it then. OLD BUSINESS: NONE NEW BUSINESS: Mr. Ascherl handed out and gave a detailed overview of the Fund Statement for the period of 10/01/2006 — 11/30/2006 Annual Asset Allocation Report: Mr. Robinson handed out and discussed booklets for the annual report. He also handed out and explained the Bond and Mortgage Portfolio, advising this is the most diversified fixed income investment option Principal offers. Strategic Asset Allocation: Ms. Finneran also passed out a small booklet, "Strategic Asset Allocation, Thought Capital" for Board members to go over in their spare time. MISCELLANEOUS BUSINESS: Accounting Corrections: Mr. Tanner brought up he has had problems getting some accounting problems correct with Principal where some funds were placed in other City funds from two (2) years prior. Mr. Tanner indicated he had spoke with several employees with Principal but the problem hasn't been corrected from that time. Mr. Ascherl indicated he thought everything had been straightened out and requested Mr. Tanner get with him to gather all the information so he could follow on it. 2 Nose , tnie Next Board Meeting: Mr. Ascherl advised Tonya Niday and Karen Claypool will be here in January and requested a Board meeting be set for January 31, 2007 @ 10:00 a.m. GUST: Ms. Moeller expressed her concerns of the letter from Principal, given out by the Personnel Department Ms. Moeller said she was talking with Ms. Finneran before the meeting and requested her to explain it to the Board. Ms. Finneran said basically it says Principal prepared a Plan restatement for the Board, that would incorporate the federal provisions collectively referred to as GUST. Ms. Finneran continued saying the letter from Ms. Niday said that the particular plan restatement that we prepared for you was not adopted; adopted means signed, in a timely fashion, or it means it was late or not signed at all. She continued that if it wasn't signed in a timely fashion there is a way to take corrective action to assure that the plan remains qualified. Ms. Finneran said the filing fee is $250.00 and Principal would charge $600.00. She also advised if not certain whether to proceed you may want to consult with the Board attorney. Mr. Ascherl advised he would check into the letter to see if this was signed and then get back with Ms. Looney, Interim Personnel Director with an answer. Mr. Ascherl said he would get the information and call Ms. Looney when he arrived back at his office. Ms. Moeller made a motion requesting Mr. Ascherl and Ms. Looney look into the plan restatement and get us an answer as far as if the Plan restatement has been signed and when, and if it hasn't to get us a new copy A.S.A.P. from Ms. Nidav and to give the board an answer on any fees involved and to get us an answer by Friday, December 22, 2006, second by Rob DeLoach MOTION CARRIED 5 -0 Board member time expired: Ms. Dewees advised the Board that Mr. Polizzi's time as a Board member expired November 17, 2006. Mr. Polizzi was asked if he would consider continuing to serve on the Board, which he replied he would. Mr. Polizzi advised he will get his letter to the Personnel Department to be attached with an Agenda Request to go before City Council. ADJOURNMENT: With no further business to discuss the meeting was adjourned at 11:40 a.m. Minutes submitted by: Personnel Department 3