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Home My WebLink About2011-02-08 NEERB MINUTES• • • NONEMERGENCY E MPLOYEES RETIREMENT BOARD MEETING February 8, 2011 Chairperson Bowman called the regular meeting of the Englewood NonEmergency Employees Retirement Plan Board to ord e r at 3 :30 p.m. in the Public Work s Conference Room of the Civic Center, 1000 Englewood Parkway, Englewood , Colorado . Member s Present: Members Absent: Others Present: Gary Bowman , Chairperson , Council Appointee Frank Gryg lewicz, Director of Finance and Administrative Services Bradley Hagan , Secretary, Employee Representative , Council Appointee John Moore, Council Appointee (by phone) Mahendra Patel , Employee Representative Jim Woodward , Council Member (arrived 3 :55 p .m .) None Wendy Dominguez, lnnovest Portfolio Solutions (left at 4:45 p.m .) Leslie Thompson , Gabriel Roeder Smith and Company (left at 4:45 p .m.) Diane Hunt, Gabriel Roeder Smith and Company (left at 4:45 p.m.) Joe Herm , Gabriel Roeder Smith and Compan y (left at 4:45 p.m.) A quorum was present. * * * * * City Council has not Appointed a Replacement for the Board Vacancy The City Council did not have sufficient applicants to fill all of the Board and Commission vacancies . The next Board and Commissions appointments by City Council are scheduled for June or July. Election of President/Chairperson and Secretary MR. GRYGLEWICZ NOMINATED GARY BOWMAN AS PRESIDENT/CHAIRPE RSON. MR. PATEL SECONDED Ayes: Nays : Absent: Hagan , Gryglewicz, Moore , Patel None Woodward Abstention: Bowman The motion carried. MR . GRYGLEWICZ NOMINATED BRADLEY HAGAN AS SECRETARY. MR. PATEL SECONDED. Ayes : Nays: Absent: Bowman, Gryglewicz, Moore, Patel None Woodward Abstention : Hagan The motion carried . • • • Approval of Minutes MR. GRYGLEWICZ MOVED TO APPROV E THE MINUTES OF THE NOVEMBER 9 , 2010 REGULAR MEETING AND THE NOVEMBER 29, 2010 SPECIAL MEETING. MR. PATEL SECONDED. Ayes : Nays : Absent: The motion carried. Bowman, Gryglewicz, Ha gan , Patel , Moore None Woodward Innovest Portfolio Solutions, LLC Ms . Dominguez presented a Five-Year Outlook for the Economy and Capital Markets. Ms Dominguez requested that in the future she present the capital market projections at the May meeting. The capital markets review was changed to the Febru ary meetings after the impact to the economy following September 2008 . Mayor Woodward arrived at 3:55 p.m. Chairperson Bowman reviewed the agenda items addressed before the Mayor arrived . Ms . Dominguez presented the 2011 Asset Allocation Study . The study provided three asset allocation alternatives. The Board discussed the allocation alternatives . MR . GRYGLEWICZ MOVED TO APPROVE "ASSET ALLOCATION ALTERNATIVE TWO" AND TO MAKE THE APPROPRIATE CHANGES TO THE INVESTMENT POLICY. MR. PATEL SECONDED . Ayes : Nays : Absent: The motion carried . Bowman, Gryglewicz, Hagan , Patel , Moore, Woodward None None lnnovest will revise the Investment Policy and present it to the Board at the May meeting . Ms Dominguez presented the 20 I 0 fourth quarter portfolio review. Gabriel Roeder Smith and Company (GRS) Ms . Thompson began the pres entation and reviewed th e information in the handout. GRS completed a replication of Buck Consultant 's 20 I 0 valuation. This provides an audit of the prior work. The results of the replicated valu ation showed a difference of less than one percent. Ms. Hunt reviewed Buck Consultants' valuation method and assumptions . She indicated that two studies may be considered . One study would utilize a more recent mortality table because life expectancies are increasing and the other would adjust the salary scale to reflect current salary increases and the overall decrease in salary growth because of the current economic conditions. The Board discussed various inflation factors to be considered for the salary scale . Mr. Gryglewicz brought forward a possible consideration to require participants to contribute three percent. The participant contribution was discussed during City budget meetings. Discussion ensued regarding the necessary steps to make the change and the different end results. Non Eme rgency Employees Retire me nt Boa rd Meetin g 2 of 4 • GRS indicated the annual valuation fee provides for the two studies recommended by GRS and adding the three percent participant contribution as long as the studies are included with the annual report . MR. GRYGLEWICZ MOVED TO APPROVE GRS PROVIDE STUDIES TO INCLUDE CHANGING THE MORTALITY TABLES , SALARY SCALE AND REQUIRING A THREE PERCENT PARTICIPANT CONTRIBUTION WITH THE 2011 REPORT . MR. PATEL SECONDED. Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan , Patel, Moore, Woodward None None Ms . Dominguez, Ms . Thompson, Ms . Hunt and Mr. Herm left at 4:55 p .m . Consideration of Retirement Benefit for Charles Petty Charles Petty, Jr. was employed December 30, 1991 until January 28 , 2011. Mr. Petty has requested a regular early retirement benefit. MR. GRYGLEWICZ MOVED TO APPROVE A 100 PERCENT JOINT AND SURVIVOR REGULAR EARLY RETIREMENT MONTHLY BENEFIT FOR CHARLES PETTY, JR . OF$ 1,142.72 BEGINNING FEBRUARY l, 2011. MR. HAGAN SECONDED. Ayes: Nays : Absent: Bowman, Gryglewicz, Hagan , Patel , Moore , Woodward None None • The motion carried . Notification of Retirement Benefit Request for Ronald Norden (June) Ronald Norden has submitted a request for retirement benefit commencing June 1, 2011 . Mr. Norden's benefit will be presented to the Board for approval after he has completed his final paperwork. Notification of Death of Vincent Macrander Vincent Macrander, retiree , passed away on October 25, 2010 . Mr. Macrander elected a lifetime and ten year certain benefit at the time of his retirement during 1986. No further benefits are due after the October 31 , 20 I 0 payment. Notification of DROP Application for Steve Ozburn Steve D . Ozburn has submitted an application to enter the Deferred Retirement Option Plan (DROP) on May I , 2011 . Mr. Ozburn 's benefit will be presented to the Board for approval after he has completed his final paperwork. Chairperson Bowman 's Review of Colorado Public Plan Coalition (CPPC) Conference Chairperson Bowman provided the Board a copy of the Power Point presentation on Retirement Plan Fiduciaries and reviewed the presentation . Chairperson Bowman reminded the Board, as Trustees , they have the ultimate fiduciary responsibility. • Chairperson Bowman mentioned the need for ongoing education for the Board . He noted the CPPC flyer that was given to the Board regarding the CPPC training session on Fiduciary Responsibility. Non Emer ge nc y Emplo yees Retirement Bo ard Mee tin g 3 of 4 .. Chairperson Bowman reviewed other CPPC conference topics and offered to allow the Board the opportunity to • view the flash drive containing all of the presentations from the September 2010 conference. Ms. Wescoat reminded the Board that if the y would like to attend the March 17, CPPC presentation on Fiduciary Responsibility, they should contact her. MR. GRYGLEWICZ MOVED TO APPROVE REGISTRATION EXPENSES FOR ALL BOARD MEMBERS ATTENDING THE MARCH 17, 2011 CPPC TRAINING. MR. HAGAN SECONDED . Ayes: Nays: Absent: The motion carried . Member Choice Bowman, Gryglewicz, Hagan , Patel , Moore , Woodward None None The next regular Board meeting is scheduled for May 10, 2011 . MAYOR WOODWARD MOVED TO ADJOURN. MR. GRYGLEWICZ SECONDED . Ayes: Bowman, Gryglewicz, Hagan , Patel , Moore, Woodward Nays: None Absent: None The motion carried . • The Board adjourned at 5 :10 p.m. • Carol Wescoat Recording Secretary No nEmergenc y Emplo yees Retirement Boa rd Mee tin g 4 of 4