HomeMy WebLinkAbout2012-11-13 NEERB MINUTES•
•
•
NONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING
November 13 , 2012
Chairperson Hagan called the regular meeting of the Englewood NonEmergency Employees Retirement
Plan Board to order at 3 :30 p .m . in the Public Works Conference Room of Civic Center, 1000 Englewood
Parkway, Englewood , Colorado .
Members Present:
Members Ab sent:
Others Present:
A quorum was present.
Approval of Minutes
Frank Gryglewicz, Director of Finance and Administrative Services
Bradley Hagan , Chairperson , Employee Representative
Bobbi Oxford, Council Appointee (arrived at 3:33 p.m.)
John Moore, Council Appointee
Mahendra Patel , Secretary, Employee Representative
Jim Woodward , Council Member
James Jordon, Council Appointee (no notice)
Wendy Dominguez, Innovest Portfolio Solutions
Jerry Huggins , Innovest Portfolio Solutions (arrived at 3:35 p.m.)
Diane Hunt, Gabriel Roeder Smith and Company
Joe Herm , Gabriel Roeder Smith and Company
Sue Eaton , Director of Human Resources (arrived at 3:47 p .m . and left at
4 : 15 p .m .)
Mary Brauer, Reinhart Boener Van Deuren Norris & Reiselbach , PC (left
at 3:47 p.m.)
* * * * *
MR . GRYGLEWICZ MOVE D TO APPROVE THE MINUTES OF THE AUGUST 14 , 2012
REGULAR MEETING. MR. PATEL SECONDED .
Ayes :
Nays :
Absent:
The motion carried.
Gryglewicz, Hagan , Moore, Patel , Woodward
None
Jordan , Oxford
Review of New Forms and Form Revisions
NonEmerg en cy Employee s Retirem ent Plan Handbook
Ms . Brauer prese nted verbiage to clarify information on page 13 of the NERP Handbook.
Ne w Hir e N ERPIN EMP Comparison Form
Ms. Brauer stated , because of the profound difference of the plans , trying to compare the two plans
is complicated . She said participants receive detailed information for each plan and a comparison of
the two plans , also there is a disclaimer at the bottom of the second page .
Ms . Oxford arrived at 3 :33 p.m.
Ms. Brauer indicated there is a typo on the second page under "Terminating Employment." "Tax ·, ~
rules related to the withdrawal of funds is are complicated ... " This shou ld be corrected for both the
NERP and NEMP descriptions.
Mr. Woodward requested clarification on some of the NEMP descriptions .
Mr. Huggins arrived at 3:35 p .m.
Instructions for NERP Contributions Withdrawal or Rollover
Ms. Brauer explained the purpose of the form and the time limitations and options. This form will
be used to notify former employees of the limitations and necessary actions depending on the Plan
chosen by the individual. Some of the language was simplified.
NERP Withdrawal or Rollover of Accumulated Contributions
Ms. Brauer explained this is necessary form to allow the former participant to provide distribution
instructions.
Special Tax Notice Regarding Plan Payments
Mr. Gryglewicz said the form does not require Board approval because it is required by the IRS and
complies with IRS guidelines.
MR. GRYGLEWICZ MOVED TO APPROVE THE HANDBOOK REVISION AND THE FORMS
PRESENTED AS CORRECTED. MR. PATEL SECONDED.
Ayes:
Nays :
Absent:
The motion carried.
Gryglewicz, Hagan , Moore, Oxford , Patel , Woodward
None
Jordan
Ms. Brauer left at 3:47 p.m.
Retirement Approvals and Notifications:
a. Consideration of DROP Benefit for Bradley Hagan
MR. GRYGLEWICZ MOVED TO APPROVE THE DROP BENEFIT FOR BRADLEY HAGAN AS
LISTED ON THE BENEFIT APPROVALS AND NOTIFICATIONS. MS. OXFORD SECONDED.
Ayes:
Nays :
Absent:
Abstention:
The motion carried.
Gryglewicz, Moore, Oxford , Patel, Woodward
None
Jordan
Hagan
b . Consideration of DROP Benefit for Jan Grengs
c. Consideration of Early Retirement Benefit for Marilyn Lamb
MR. GRYGLEWICZ MOVED TO APPROVE THE BENEFITS FOR GRENGS AND LAMB LISTED
ON THE BENEFIT APPROVALS AND NOTIFICATIONS. MS. OXFORD SECONDED.
NonEme rge nc y Emp loyees Retiremen t Board Meet in g
2 of4
•
•
•
•
•
•
Ayes:
Nays:
Gryglewicz, Hagan , Moore, Oxford , Patel, Woodward
None
Absent: Jordan
The motion carried .
Gabri e l Roeder Smith and Company Review of Study Regarding Closing of Plan to New Participants or
New Tier of Benefits.
Ms . Hunt presented the projection study and explained the process used when calculating the projected
co sts related to closing the Plan to new participants , or creating a new tier of benefits for future hires .
The portion of the study related to closing the Plan to new participants indicates that there is no
immediate Plan cost savings and the estimate indicates there will be none until approximately 2042.
There are various estimated contribution requirements including a combined contribution level for both
the NERP and the money purchase plan with a seven percent employer contribution. Ms. Hunt explained
that the liability of the current members will override the savings realized by the few new participants
going into the money purchase plan.
Mr. Moore inquired about the funding ratio amounts on page seven. Ms. Hunt will confirm the numbers
are correct.
Ms. Hunt reviewed the calculations reflecting the results of the Plan creating a benefit tier for new
participants with a one percent benefit multiplier rather than a one-and-one-half percent benefit
multiplier; the annual benefit reduction for earl y retirement increase from three percent to six percent and
eliminating Special Early Retirement (Rule of 88 .) Ms. Hunt indicated this reduces Plan benefits to the
point that there would be little incentive for new employees to participate. This will also greatl y increase
the complexity of the Plan .
Di scussion ensued regarding the study. The study was initiated by City management during budget
discussions and the Board will take no further action at this time .
The Board discussed the circumstances that impact contribution levels , such as a significant market gains
or losses , actuarial assumptions verses actual returns on investment and the impact of GASB changes.
Sue Eaton left at 4: 15 p.m.
lnnovest Portfolio Solutions
Ms. Dominguez presented the Review of Service Provider Fees -Disclosure under ERISA Section
408(b)(2). Thi s information is required by the Department of Labor for retirement plans. The Board had
no questions regarding the fees. Ms. Dominguez said Innovest will provide the update of information to
the Board annually .
M s . Dominguez reviewed the information on page two of the performance evaluation. Page two provides
a history of the Plan during the time lnnovest has been the consultant. This information provides a
fiduciary record showing the Board has reviewed fees and various products available to the Plan .
Ms . Dominguez stated it was a good quarter for the earnings. The Plan is up about five percent for the
quarter and outperformed the benchmark. She continued with the overview of the Plan and commented
on the fiscal cliff and concerns if legislators do not act to avoid a recession . She reviewed other issue s
that impact the economy.
Non Emerge ncy Emplo yees Retirement Boa rd Mee tin g
3 of 4
Mr. Huggins reviewed the individual funds' performance . lnnovest will continue monitoring the funds
that are a minor concern and inform the Board if a change is necessary.
Member Choice
No items were discussed
The next regular Board meeting is scheduled for February 12 , 2013 in the Public Works Conference Room.
Meeting time will be determined after the agenda is evaluated.
The Board adjourned at 4:55 p.m.
Caro I W escoat
Recording Secretary
Non Emergency Emplo yees Retirement Boa rd Mee tin g
4 of 4
•
•
•