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HomeMy WebLinkAbout1993-04-13 NEERB MINUTESNON-EMERGENCY PENSION BOARD MEETING April 13 , 1993 A regular meeting of the Englewood Non-Emergency Pension Board was called to order by Chairperson Richard Kahm , at 4 :05 p .m. in Conference Room A of the Englewood City Hall , 3400 South Elati Street, Englewood , Colorado Members Present : Members Absent : Others Present : Richard Kahm , Chairperson Gary Bowman, Council Appointee Betty Goosman, Employee Representative Orris Saunders, Council Member LeRoy Da Vault , Council Appointee Lorraine Hayes , Director of Financial Services Jill Mees, Council Appointee Donald Mazanec, William M . Mercer Inc. Carol Wescoat, Recording Secretary A quorum was present. * * * * * Seating of New Board Member Ms . Hayes welcomed the new City Council member to the Board . Approval of Minutes MS . HA YES MOVED, AND MR. DA VAULT SECONDED, TO APPROVE THE MINUTES OF THE REGULAR MEETING OF JANUARY 12 , 1993 . Ayes: Nays : Absent : The motion carried. Kahm , Bowman, Saunders, Goosman, DaVault, Hayes None Mees MS . HA YES MOVED, AND MR. BOWMAN SECONDED , TO APPROVE THE MINUTES OF THE JOINT MEETING OF MARCH 23 , 1993. Ayes : Nays: Absent: The motion carried . OLD BUSINESS Kahm , Bowman, Saunders, Goosman, DaVault, Hayes None Mees * * * * * Status of proposed Increase in Benefits Ms. Hayes reviewed the draft ordinance prepared by Rick DeWitt. Mr. Mazanec suggested that terminology referring to "Cost of Living" should be stated as "increase ." The IRS interprets the term "Cost of Living" as phrasing that suggests a pattern and therefore must be repeated . The term "Terminated Vested Members" was discussed . Ms. Hayes explained the term possibly may not be subject to change in the title section of code, but should be removed from other statements in the ordinance . The members and beneficiaries not receiving benefits as of January 1, 1993 , will have no increase in benefits . The City Council will have its first reading of the ordinance on May 3, 1993 , and second reading on May 17, 1993 . It will be effective on June 20 , 1993 , 30 days after final publication . Analysis of Boston Company Investments Ms . Hayes presented the options available when considering a change of the plan's investment manager. Mr. Bowman felt the criteria for evaluating the manager's performance should be consistent. He did not feel that the criteria used by The Boston Company for their own evaluation and that was used by William M . Mercer Inc. were the same . Mr. Da Vault thought the Boston Company's performance had been acceptable. Mr. Mazanec felt their short-term performance had been acceptable, but the performance on an annual basis was not comparable to other investment managers . 2 Ms. Hayes said the Fire Pension Board and Police Pension Board would like to have a joint meeting during May to discuss the Boston Company and possibility of changing management companies. The Board gave direction to schedule the Joint Meeting during May. NEW BUSINESS Bridging of Service for Brenda Castle Ms . Hayes reviewed the memorandum pertaining to the bridging of service for Brenda Castle. The interpretation of the Englewood Municipal Code as discussed at the January 12, 1993 Board Meeting set a precedence for her monthly retirement amount to be calculated by the usual formula (1.5% X Years of Credited Service X Final Average Compensation) and then reduced by the actuarial equivalent of any distribution of pension contributions she received upon her earlier termination that were not repaid at re- employment. MS . HA YES MOVED, AND MR. BOWMAN SECONDED, TO ACCEPT THE CALCULATIONS ACCORDING TO CODE TO ADJUST BRENDA CASTLE'S RETIREMENT BENEFIT BY BRIDGING HER PRIOR SERVICE. Ayes: Nays : Absent: The motion carried. Kahm, Bowman, Saunders, Goosman, DaVault, Hayes None Mees Benefit Level for Deferred Vested Participants Ms . Hayes explained employees who are promoted and those who had opted out of the Non-Emergency Plan when the ICMA-RC 401(a) plan became available remain in the Non-Emergency Plan as a deferred vested member. There is no increase in benefits for . these employees who are still employed by the City. The question was raised of the possibility of basing the benefit calculation on the highest average compensation during employment rather than on the period of time as an active member of the plan . This would give the deferred vested participants increased benefits, even though the rates of contribution for their benefits were based on the participants' salaries during their active participation . 3 Mr. Kahm felt adequate explanation was given to the employees who opted out of the plan into the ICMA 40 I (a) that their retirement benefits would be based on pay during participation. No one had mentioned dissatisfaction to him that no increase in benefits exists for the deferred vested participants . Mr. Mazanec commented the IRS would consider a change as discriminating because it would not allow an increase for deferred vested participants who had terminated employment. It was therefore decided that this was a non-issue . Attendance of Meetings Ms . Hayes explained when City Council considers appointments to the board they review the attendance of the board members . An attendance record was provided to the board. Review oflssue Sheet for 4/19/93 City Council Study Session Ms . Hayes reviewed the draft of the Issue Sheet for the Study Session . There were no changes. Ms . Hayes offered to present the Issue Sheet at the Study Session . MEMBERS CHOICE Printing of Participant1s Handbook Ms . Hayes informed the board that there is a very limited number of h andbooks remainin g . The books are given to each new participating employee. The books had been prepared by William M . Mercer Inc ., and printed by Central Services . Mr. Kahm suggested William M . Mercer Inc . r eview the book prior to printing to make sur e it is current, and the most economical printing option be pursued . MR. KAI-IM ENTERTAINED A MOTION TO PROCEED WITH AN UPDATING OF THE BOOK AND PRINT A THOUSAND BOOKS BY THE MOST ECONOMICAL METHOD. THE BOARD MOVED AND MR. BOWMAN SECONDED . Ayes : Nays : Absent: Kahm, Bowman, Saunders, Goosman, Davault, Hayes None Mees 4 J ' ..... • Mr. Kahm adjourned the meeting at 4 :55 p .m. 5