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05-09-2001 GENERAL EMPLOYEES PENSION BOARD MEETING May 9, 2001 CALL TO ORDER: The General Employees Pension Board meeting was called to order by Chairman Lichter in the City Hall Conference Room, Wednesday, May 9, 2001 at 2:10 p.m. ROLL CALL: Members present: Judith Lichter, Jack Corder, Eric Bosse, Kathy Cornelius and Tyna Hilton. Lisa Miller and Mike Tenney. were absent. Also present were Donna Looney, Administrative Assistant, Jack Ascherl, Consulting Agent of Record, Debby Sigler, Personnel Director and Ken Hooper, City Manager. APPROVAL OF MINUTES: Eric Bosse moved to approve the January 30, 2001 minutes. Seconded by Tyna Hilton. Motion CARRIED 5 -0. OLD BUSINESS: Debby Sigler reported that the Council voted unanimously to approve the board's recommended amendments to the General Employees Pension Plan. The amendments will be forwarded to Principal immediately. NEW BUSINESS: Jack Ascherl reviewed the Flexible Pension Investment Fund Statement for the period 10 -01 -00 through 3- 31 -01. He went over each investment and it's activity for the time period. (See attached) Jack Ascherl addressed the manner in which Principal handles the monies set aside for retirees. The Benefit Index System, which is the system currently used is not necessarily the best method for municipalities. The Direct Funding System would be a better method because the City would maintain a better cash flow situation. He has discussed this with the City's Finance Director, Michele Goins and she agreed to look into it. City Manager, Ken Hooper stated that he and Mr. Ascherl have discussed this before. It was agreed that it could be looked into. Eric Bosse moved to instruct Principal to change to the Direct Funding method after the Finance Director approves of the idea. Seconded by Kathy Cornelius. Motion CARRIED 5 -0. Mr. Hooper informed the board that changes are being made to the Defined Contribution Plan. It will become more comparable to this plan as far as a vesting period and restrictions are going to be placed on the borrowing of the monies in the accounts. The concern is that the employees are not considering this a retirement option, rather a quick way to get loans. It was pointed out that the terms of office for most of the board members are up. Tyna Hilton is just beginning her term, as the General Employee P.E.A. representative. Mr. Hooper will be appointing the members in accordance with the by -laws and the members will receive notices. ADJOURNMENT: There being no further business, Chairman Lichter announced the meeting adjourned at 2:40 p.m. Minutes submitted by: Personnel Department