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HomeMy WebLinkAbout2012-05-08 NEERB MINUTES.. • • • NONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING May 8, 2012 Chairperson Hagan called the regular meeting of the Englewood NonEmergency Employees Retirement Plan Board to order at 2:35 p.m . in the Public Works Conference Room of the Civic Center, 1000 Englewood Parkway, Englewood, Colorado. Members Present: Members Absent: Others Present: A quorum was present. Approval of Minutes Frank Gryglewicz, Director of Finance and Administrative Services Bradley Hagan , Chairperson , Employee Representative James Jordon, Council Appointee (arrived at 2:40 p.m.) Bobbi Oxford , Council Appointee Mahendra Patel , Secretary, Employee Representative Jim Woodward , Council Member (left at 4 :55) John Moore , Council Appointee (with notice) Wendy Dominguez, Innovest Portfolio Solutions Jerry Huggins, Innovest Portfolio Solutions Diane Hunt, Gabriel Roeder Smith and Company Mary Brauer, Reinhart Boener Van Deuren Norris & Reiselbach, PC (arrived at 3 :10 p.m.) Daniel Brotzman, City Attorney (arrived at 3 :30 p .m. and left at 4:55 p.m.) * * * * * MR . GRYGLEWICZ MOVED TO APPROVE THE MINUTES OF THE FEBRUARY 14 , 2012 REGULAR MEETING AND FEBRUARY 23 , 2012 AND APRIL 4, 2012 SPECIAL MEETINGS. MR. PATEL SECONDED . Ayes : Nays : Absent: Abstain: The motion carried. Gryglewicz, Hagan , Jordan, Oxford , Patel , Woodward None Moore Abstained from February 23, 2012 meeting only -Woodward Innovest Portfolio Solutions, LLC Ms. Dominguez reviewed Innovest's Capital Market Process and Long Term Outlook for The Economy and Capital Markets . Ms. Dominguez presented the Asset Allocation Study. The results of the study provide three alternate mixes that could optimize the investments. Innovest has recommended mix number two. Discussion ensued regarding the expected seven percent investment return compared to the actuarial assumption of seven and one-half percent. Ms. Dominguez indicated that the investment allocation change should be within the Investment Policy 's acceptable range, however ifthere is a need for a minor policy change the revised policy will be presented for approval at the next meeting. MR GRYGLEWIZ MOVED TO APPROVE MIX TWO OF THE ASSET ALLOCATION STUDY. MS . OXFORD SECONDED. Ayes: Gryglewicz, Hagan, Jordan, Oxford, Patel, Woodward Nays : Absent: The motion carried . None Moore Ms. Brauer arrived at 3: 10 p.m. Mr. Huggins covered the 2012 first quarter portfolio review and analysis of each fund in the Plan . The report reflected a good first quarter. He indicated that a couple of the funds are of minor concern and will be monitored. Allianz is a concern because there has been a change in management staff. One person was expected to depart, however the other person's departure was not anticipated. lnnovest will provide possible fund candidates to replace Allianz RCM at the next Board meeting . Gabriel Roeder Smith & Company -January I, 2012 Actuarial Report Ms . Hunt reviewed the results of the January 1, 2012 actuarial report. The 2013 contribution will be a total of 16.3 percent of pay. The employee contribution rate of three percent will begin in 2013 and the City to contribute 13.3 percent. The actuarial report does not reflect the liability created by the necessity to refund accumulated contributions for non-vested terminated employees. There will be an additional liability to insure the Member's benefit payments are greater than the accumulated contributions at the point benefit payments commence . These liabilities will be reflected in the 2013 actuarial report. Ms . Hunt commented that it appears that the mortality tables may need to be changed to a more current table for 2014. The current tables are appropriate for the 2012 actuarial report. MR. GRYGLEWICZ MOVED TO APPROVE THE JANUARY 1, 2012 ACTUARIAL REPORT. MS. OXFORD SECONDED . Ayes : Nays: Gryglewicz, Hagan, Jordan , Oxford, Patel , Woodward None Absent: Moore The motion carried . Retirement Approvals and Notifications: a . Consideration of Retirement Benefit for Aladino Archuleta b. Notification ofthe Death of Edith Romans c . Consideration of DROP Benefit for Cecil Payne d . Consideration of DROP Benefit for Manuel Atencio (Note : there was a typo requiring a name correction for Atencio on the packet spreadsheet) e . Notification of DROP Benefit Request for Linda Shea f. Notification of DROP Benefit Request for James Veryser g . Consideration of Retirement Benefit for Christopher Heelis h. Notification of DROP Benefit Request for Charles Auner 1. Notification of the Death of David Butler MR . GRYGLEWICZ MOVED TO APPROVE THE ITEMS LISTED ON THE BENEFIT APPROVALS AND NOTIFICATIONS. MS. OXFORD SECONDED. Ayes: Nays: Absent: The motion carried. Gryglewicz, Hagan , Jordan , Oxford , Patel , Woodward None Moore No n Eme rge ncy Employees Retire me nt Board Meetin g 2 of3 J • • • I. .. • • • . 4 Colorado Public Plan Coalition Annual Conference September 12-14, 2012 The Colorado Public Plan Coalition Annual Conference will be in Colorado Springs, September 12-14, 2012. The Board discussed the benefits of the conference . MR. GRYGLEWICZ MOVED TO APPROVE THE USUAL EXPENSES FOR ANY BOARD MEMBER THAT WISHES TO ATTEND THE COLORADO PUBLIC PLAN COALITION CONFERENCE AND NOTIFIES MS. WESCOAT PRIOR TO AUGUST 1, 2012. MS . OXFORD SECONDED. Ayes: Nays: Gryglewicz, Hagan , Jordan , Oxford, Patel, Woodward None Absent: Moore The motion carried. The Board took a brief recess from 3 :50 -3 :55 p.m . Discussion of Proposed Plan Document Amendments : Ms. Brauer reviewed the amendments to the Plan document that were not finalized at the prior meetings. The Board discussed the amendments as necessary. Most of the amendments are corrections or clarifications. The Board discussed the suggested guidelines for reemployment of retirees. The Board agreed not to discontinue benefit payments for rehired Members whose benefit commenced after age 62 or for those Members who it was reasonably anticipated that the Employee would not provide services to the City in the future . A Member cannot be reemployed as an Employee of the City sooner than 120 days after the date the former Member's employment with the City terminated . Mr. Woodward and Mr. Brotzman left at 4 :55 p.m. MR . GRYGLEWICZ MOVED TO APPROVE ALL AMENDMENTS WITH THE CHANGES DISCUSSED DURING THE MEETING. MR. PATEL SECONDED. Ayes : Gryglewicz, Hagan , Jordan, Oxford, Patel Nays : None Absent: Moore, Woodward The motion carried. Member Choice No items were discussed. The next regular Board meeting is scheduled for August 14, 2012 . The Board adjourned at 4:58 p.m . ~dw~~.t Carol Wescoat Recording Secretary 3 of 3 Non Eme rgency Employees Retirement Bo a rd Meeting