07-21-1999 GENERAL EMPLOYEES PENSION BOARD
MEETING
July 21, 1999
CALL TO ORDER:
The General Employees Pension Board meeting was called to order
by Vice Chairman, Karen Rickelman, in the City Hall Conference
Room, Tuesday, July 21, 1999 at 2:06 p.m.
ROLL CALL:
James Gornto Not Present
Karen Rickelman Present
Jack Corder Present
Eric Bosse Present
Lisa Miller Present
Mike Tenney Not Present
James Hoppe Not Present
Also present was Jack Ascherl, Consulting Agent of Record, Mark
Cusumano, Principal Group Representative, Kathy Cornelius, Finance
Department, and JoAnn Richard, Recording Secretary.
APPROVAL OF MINUTES:
A motion was made by Lisa Miller to approve the minutes from June
22, 1999 with second by Eric Bosse. Motion CARRIED.
NEW BUSINESS:
Mr. Ascherl distributed a letter he sent to Principal requesting
them to provide him with an actuarial cost estimate for several
changes in the plan. He is expecting to receive that information
soon.
Mr. Ascherl also stated that he received a rough draft booklet of
the current plan for the board and the City Attorney to review.
Principal Representative, Mark Cusumano, distributed the Fund
Selection Service Proposal booklet to the Board Members. He then
gave his presentation as to how the service works. He explained
how the proposal they prepared for the board was tailored to our
retirement plan. He explained how they would develop our fund mix
over the next three years.
Mr. Cusumano stated that 8.1% would be distributed between either
the Stock Account or the Stock Index 500 Account. That would be
the board's choice.
After discussing both accounts, Eric Bosse made a motion to accept
the portfolio management services of Principal based on the
allocation as presented selecting U.S. Stock for the domestic stock
distribution with second by Jack Corder. Motion CARRIED.
Mr. Cusumano explained the cost of the Fund Selection Service as
shown in the proposal, would be $3,610.00 annually or $902.50
quarterly. He stated the cost could be billed or taken out of plan
assets.
Karen Rickelman suggested having the cost of this service deducted
from the plan assets stating that it would be less paperwork, etc.
The board agreed.
There was discussion on the signing of the Defined Benefit Fund
Selection Service Agreement. Karen Rickelman stated that the City
Manager could sign the agreement since it was less than $15,000 per
year. She said she would fill it out as discussed with the expense
being deducting from the contract funds, and the fund selection mix
as the board discussed.
Mr. Cusumano asked Karen Rickelman to attach a memo to the
agreement stating the board would like to utilize the U.S. Stock
Account.
There was discussion as to the effective date of the agreement.
Jack Ascherl explained that August 1, 1999 might be too soon for
Principal to get the accounts set up. Mr. Cusumano will check into
the status of becoming effective August 1, 1999.
It was agreed that as soon as the application was completed Jack
Ascherl would submit it to the City Manager for signature.
OLD BUSINESS:
Karen Rickelman had a question regarding certain plan changes that
Principal was doing an impact statement on. She questioned the
clause the normal retirement age of fifty -five (55) or five (5)
years of accrued service or after twenty -five (25) years of accrued
service, and what impact this would have on an employee who left
the City now. Jack Ascherl explained that when an employee is
terminating from a plan they receive the benefits of the plan at
the time they terminate.
Karen Rickelman also questioned the death benefit. Jack Ascherl
explained that if a person is married their spouse will get the
death benefit which is taking a joint fifty percent 50% annuity to
calculate what the retirement would be when that person would have
met their normal retirement date. That is when the survivor would
receive one half of what that person would have been entitled to at
the time of their retirement date. There is no up -front death
benefit to a spouse. Jack Ascherl said he would get the pages from
the State's plan for the board's review.
Karen Rickelman also inquired as to the rough draft of the booklet.
Jack Ascherl gave his copy to the board secretary to distribute to
each board member after making copies.
Jack Ascherl suggested that each board member review the rough
draft booklet, and make any changes to be discussed at the next
meeting.
It was decided the board would meet after receipt of the Impact
Statement from Principal in approximately two (2) weeks.
There was discussion among the attending board members about what
to do in the situation where board member, Jim Hoppe has missed two
out of three meetings.
It was agreed that the board would vote for a new Vice Chairman at
the next meeting, due to the fact Karen Rickelman is leaving the
City.
ADJOURNMENT:
Motion was made for adjournment by Lisa Miller second by Eric
Bosse. Motion CARRIED.
Meeting adjourned 3:22 p.m.
Minutes submitted by:
JoAnn Richard