HomeMy WebLinkAbout1992-10-20 NEERB MINUTESI
NON-EMERGENCY RETIREMENT BOARD MEETING
October 20, 1992
The regular meeting of the Non-Emergency Retirement Board was called to order by
Chairperson Rick Kallin at 4: 10 p .m . in Conference Room A, Englewood City Hall, 3400
S~uth Elati Street, Englewood, Colorado .
Members Present:
Members Absent:
Others Present :
Rick Kallin, Chairperson
Gary Bowman, Council Appointee
Jill Mees, Council Appointee
Betty Goosman, Employee Representative
Susan Van Dyke, Council Member
Lorraine Hayes, Director of Financial Services
LeRoy De Vault, Council Appointee
Brenda Castle, Deputy City Clerk
Bob Stephenson, EEN AFSCME President
A quorum was present.
* * * * *
Approval of Minutes
MS. VAN DYKE MOVED, AND MS . HA YES SECONDED, TO APPROVE THE
:MINUTES OF THE MEETING OF MAY 4, 1992.
Ayes :
Nays :
Absent :
The motion carried.
NEW BUSINESS
Kahm, Bowman, Mees, Goosman, Van Dyke, Hayes
None
De Vault
* * * * *
Change in City Contributions to Pension Plan
Ms. Hayes told the Board that the City is required by the Municipal Code to make
contributions to the plan at the rate specified in the actuarial report for the plan year ended
December 31, 1991. The January 1, 1992 report indicates a 5.363% contribution rate will
be needed to maintain the benefit level. Previously the rate was 7%. She explained that
the City is required to make sufficient contributions for the retirement fund to remain
healthy and that lowering the contribution level does not change the level of benefit to the
employee .
Mr. Kahm said that when the retirement plan was first started, the contribution rate was
over 10%, with the employees participating. In the late 1970's, the employees
discontinued contributing to the plan and, in lieu of a cost of living increase, the City
began contributing the entire 10%. In 1982, because the plan was doing well, the City
was able to lower the rate to 8% and later to 7%. He said the current plan offers more
benefits than the employees had bargained for in the first place, increasing 200% over
what the original plan called for. He feels there has been some concern among the
employees over the reduction in the City contribution level, but that an understanding now
exists .
Mr. Stephenson said there is a perception by the employees that the City has "tried to pull
a fast one" and feels an article in the Admin News explaining defined benefits and defined
contributions might help create understanding among the employees .
* * * * *
199 2 Actuarial Report
Ms . Hayes reviewed the draft of the 1992 Actuarial Report prepared by William M.
Mercer, Inc . She touched on some of the more significant information, explaining the
meaning of the figures and how they were calculated .
Ms . Hayes pointed out that, by lowering the contribution to 5 .363%, the City will save
over $100 ,000 per year. If the contribution level remained at 7%, the plan would be fully
funded in 1993 . She will check to see when the plan will be fully funded at the lower
contribution level, but feels it won't take much longer.
* * * * *
Consider COLA
Mr. Kahm stated that the employees would like the Board to consider a cost ofliving
increase at least every other year, rather than waiting eight years as they did previously.
In response to a question by Ms. Van Dyke, Ms. Hayes stated that the increase refers,
literally, to a change in the pensioner's check. Because the pension amount is typically
based on salary during the last three years of service, increases only occur with a cost of
living increase .
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Mr. Kahm requested that Ms . Hayes provide the Board with cost infonnation by January
12 , 1993 . It was decided to request that Mercer, Inc . provide infonnation on the CPI for
the last two years .
Mr. Stephenson suggested using the cost ofliving percentage adopted by the Social
Security Administration, feeling it would be a good basis since it is used nationwide . Ms .
Hayes responded that Social Security sometimes plays catch up because they haven't made
their adjustments in a timely way and, therefore, their increase may not coincide with the
City's needs.
Mr. Kahm said that Mercer included a history of Social Security for the entire time frame
considered for the last COLA report .
* * * * *
Members' Choice
Mr. Kahm asked ifthe members like having afternoon meetings and the response was
affirmative.
Ms. Hayes informed the members of a joint meeting of the three pension boards scheduled
for October 27, 1993 at 3 :00 p.m. in the George Perring Room .
* * * * *
The meeting was adjourned at 5 :00 p .m.
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