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Home My WebLink About2011-05-10 NEERB MINUTES• • • NONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING May 10 , 2011 Chairperson Bowman called the regular meeting of the Englewood NonEmergency Employees Retirement Plan Board to order at 3:33 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 Gary Bowman, Chairperson , Council Appointee Frank Gryglewicz, Director of Finance and Administrative Services Bradley Hagan , Secretary, Employee Representative , Council Appointee Mahendra Patel , Employee Representative Jim Woodward , Council Member John Moore , Council Appointee (with notice) Wendy Dominguez, Innovest Portfolio Solutions (left at 4: 15 p.m.) Gordon Tewell , lnnovest Portfolio Solutions (left at 4: 15 p .m .) Diane Hunt, Gabriel Roeder Smith and Company (left at 4:45 p.m .) Joe Herm, Gabriel Roeder Smith and Company (left at 4:45 p.m.) * * * * * MR. GRYGLEWICZ MOVED TO APPROVE THE MINUTES OF THE FEBRUARY 8, 2011 REGULAR MEETING. MR. PATEL SECONDED . Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan, Patel , Woodward None Moore Investment Policy Revision 20I 1 Ms . Dominguez reviewed the asset allocation changes approved at the last meeting and the Board 's directive to make the appropriate changes to the Investment Policy . Mayor Woodward asked about the wording on page 9 of the Policy. Ms. Dominguez noted an error in the verbiage referring to the "Universe" and it should be listed as US Private Real Estate-Open End Universe. The benchmark is correct as NCREIF ODCE. The correction will be made for the final version of the Investment Policy Revision 2011. MR. GRYGLEWICZ MOVED TO APPROVE THE REVISED INVESTMENT POLICY TO BE ALIGNED WITH THE ALLOCATIONS APPROVED DURING THE FEBRUARY 8, 2011 MEETING WITH THE CHANGE TO PAGE 9 REGARDING UNIVERSE OF THE US REAL ESTATE-OPEN END. MAYOR WOODWARD SECONDED. Ayes: Nays : Absent: The motion carried. Bowman, Gryglewicz, Hagan , Patel , Woodward Non~ Moore Innovest will provide the final corrected document. Innovest Portfolio Solutions, LLC • Ms . Dominguez presented the first quarter capital markets information. Mr. Tewell reviewed the funds ' performance during the first quarter and noted the funds ' performance presented no cause for immediate Board action . Ms Dominguez and Mr. Tewell left at 4 : 15 p .m . Gabriel Roeder Smith and Company (GRS) Ms . Hunt explained that Ms . Thompson had a conflict and could not attend ; she proceeded to review the handout. She outlined the two studies the Board had requested and the impact to the annual required contribution (ARC). Changing the mortality tables from the 1983 GAM to 1994 GAM more accurately reflects current life expecta ncies . People are now typically living longer. The lower salary scale inflation rate also reflects a more accurate estimate of the salary increases because of inflation . MR. GRYGLEWICZ MOVED TO APPROVE CHANGING ACTUARIAL ASSUMPTIONS USING TH E 1994 GAM MORTALITY TABLE AND REDUCING THE SALARY SCALE INFLATION RATE FROM FO U R PERCENT TO THREE PERCENT. MAYOR WOODWARD SECONDED . The Board discussed the actual calculations of salary compared to recent actual history of the salary mcreases . Ayes: Nays : Absent: Bowman, Gryglewicz, Hagan , Patel , Woodward None Moore • The motion carried . • GRS will finalize the January 1, 2011 with the assumption chan ges . Ms . Wescoat will complete a phon e poll to approve the actuarial report so that the final 2012 ARC will be available for preparing the 2012 Budget. Consideration of DROP Application for Steve Ozburn Mr. Ozburn listed a beneficiary for his benefit calculation who was 28 years younger than him . When a retiree names a substantially younger beneficiary, the Plan is liable for a potential greater benefit if the beneficiary 's life expectancy is 25 years or more than the retiree . The Board discussed the memo included in the packet regarding the reduction of benefit when a beneficiary has a significant age difference . Ms . Hunt explained there were some changes included in the Pension Protection Act that might require the Plan to not reduce the benefit for an age difference . Ms . Hunt had discussed the matter with Mary Brauer, the NonEmergency Employees Retirement Plan (NERP) attorney and received confirmation from Ms. Brauer that the Plan can continue to act as they had in the past allowing a reduction of benefits for a substantial age difference. The benefit reduction may be grandfathered into the Plan provided there was a past history of usin g the age difference benefit reduction. Steve D . Ozburn submitted an application to enter the Deferred Retirement Option Plan (DROP) on April I , 2011. Mr. Ozburn was eligible to participate in the NERP from October 2 , 1989 through March 3 1, 2011. He has signed the irrevocable agreement for the DROP and elected a lifetime only benefit beginning April I , 2011 with his final date of employment no later than March 31 , 2014. MR . GRYGLEWICZ MOVED TO APPROVE A LIFETIME REGULAR RETIREMENT MONTHLY BENEFIT FOR STEVE D . OZBURN OF$ 1,615 .65 BEGINNING APRIL I , 2011. MR. PATEL SECONDED . Ayes: Bowman, Gryglewicz, Hagan , Patel , Woodward Non Eme rgenc y Employees Reti re ment Board Mee tin g 2 of 6 • • • Nays: Absent: The motion carried. None Moore Ms . Hunt and Mr. Herm left at 4:45 p.m. Consideration of DROP Application for Joseph Pershin Joseph Pershin submitted an application to enter the Deferred Retirement Option Plan (DROP) on May 1, 2011. Mr. Pershin was eligible for the NERP from September 3 , 1974 through April 30, 2011 . He has signed the Irrevocable A gre e ment for the DROP and elected a lifetime only benefit beginning May 1, 2011 with his final date of employment no late r than April 30 , 2014 . MR. GRYGLEWICZ MOVED TO APPROVE A LIFETIME REGULAR RETIREMENT MONTHLY BENEFIT FOR JOSEPH PERSHIN OF$ 3 ,235 .96 BEGINNING APRIL I, 2011. MR. HAGAN SECONDED . Ayes: Nays : Absent: The motion carried. Bowman, Gryglewicz, Hagan, Patel , Woodward None Moore Notification of DROP Application for E llis Slater Elli s Slater submitted an application to enter the Deferred Retirement Option Plan (DROP) on June 1, 2011 . Mr. Slater 's benefit will be presented to the Board for approval after he has completed his final paperwork . C onsideration of Retirement Benefit for Ronald Norden Ronald Norden was employed from June 17 , 1975 until May 2 , 2011 . Mr. Norden has requested a regular retirement benefit at age 65 . MR. GRYGLEWICZ MOVED TO APPROVE A 100 PERCENT JOINT AND SURVIVOR REGULAR EARLY RETIREMENT MONTHLY BENEFIT FOR RONALD NORDEN OF$ 1,913 .01 BEGINNING JUNE I , 2011. MR. HAGAN SECONDE D. Ayes : Nays : Absent: The motion carried . Bowman, Gryglewicz, Hagan , Patel , Woodward None Moore Consideration of Retirement Benefit for James Medlock James Medlock was employed from May 16 , 1977 until February 25 , 2011. Mr. Medlock has requested a special early retirement benefit at age 55. MR. GRYGLEWICZ MOVED TO APPROVE A 100 PERCENT JOINT AND SURVIVOR REGULAR EARLY RETIREMENT MONTHLY BENEFIT FOR JAMES MEDLOCK. OF $2,751.13 BEGINNING MARCH 1, 2011 . MR. HAGAN SECONDED . Ayes: Nays: Bowman, Gryglewicz, Hagan , Patel , Woodward None 3 of6 Non Emerge ncy Empl oyees Retirement Board Mee tin g • • • Absent: Moore The motion carried. Consideration of Retirement Benefit for Patrice Patrone Mosher Patrice Patrone Mosher was employed from April I, 1977 until May 2, 1987 . Ms. Mosher has requested an early retirement benefit at age 55 . MR. GRYGLEWICZ MOVED TO APPROVE A 100 PERCENT JOINT AND SURVIVOR REGULAR EARLY RETIREMENT MONTHLY BENEFIT FOR PATRICE PATRONE MOSHER OF $152.02 BEGINNING MAY I , 2011. MR . PATEL SECONDED . Ayes: Nays : Absent: The motion carried. Bowman, Gryglewicz, Hagan , Patel , Woodward None Moore Consideration of Retirement Benefit for Sue Chynoweth Sue Lynn Chynoweth was eligible for the NERP from March 3 , 1987 until October 30, 1995. Ms. Chynoweth is currently employed by the City on a part-time basis and has attained age 65. MR. GRYGLEWICZ MOVED TO APPROVE A LIFETIME REGULAR RETIREMENT MONTHLY BENEFIT FOR SUE LYNN CHYNOWETH OF$ 278.68 BEGINNING JUNE I , 2011. MR. HAGAN SECONDED . Ayes : Nays : Absent: The motion carried . Bowman, Gryglewicz, Hagan , Patel , Woodward None Moore Notification of Death of Shirley Wertin Shirley Wertin, surviving spouse of Vincent Wertin , passed away on March 5 , 2011. No further benefits are due after the March 31 , 2011 payment. Notification of Death of Florence Crossley Florence Crossley, retiree, passed away on March 13, 201 I. Ms . Crossley retired during 1980 with a lifetime and 10 year certain benefit. No further benefits are due after the March 31 , 2011 payment. Correction of DROP Benefit Calculation for Patricia Gonzales Patricia Gonzales began the DROP as of October 1, 2010 . As part of the audit preformed by GRS, they found and reported an error in the calculation of the DROP benefit. The amount of the 100% Joint and Lifetime benefit will be increased to $1,513 .03 beginning with the March 2011 payment and all payments thereafter. To correct the error, the March benefit payment will include the additional amount of$26.67 for five months (October, November, December, January, and February) equaling $133 .35. The total March 31, 2011 DROP payment is $1,646.38 . NonEmergency Employees Retire me nt Bo ard Meetin g 4 of6 • • • MR. GRYGLEWICZ MOVED TO APPROVE TO CORRECT THE 100% PERCENT JOINT AND SURVIVOR MONTHLY DROP BENEFIT FOR PATRICIA GONZALES OF $1 ,513.03 BEGINNING OCTOBER 1, 2010. MR . HAGAN SECONDED. Ayes : Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan , Patel , Woodward None Moore Consideration of Retirement Benefit for Carl Carrell Carl Carrell was employed from August 3 , 1981 until August 13 , 2000. Mr. Carrell has requested an early retirement benefit at age 55 . MR. GRYGLEWICZ MOVED TO APPROVE A 100 PERCENT JOINT AND SURVIVOR REGULAR EARLY RETIREMENT MONTHLY BENEFIT FOR CARL CARRELL OF $576.04 BEGINNING MAY I , 2011. MR. PATEL SECONDED. Ayes: Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan, Patel, Woodward None Moore Consideration of Retirement Benefit for Je1Ty S. Nestler Jerry S. Nestler was employed from April 1, 1991 until January 15 , 1998 . Mr. Nestler has requested an early retirement benefit at age 60. MR. GRYGLEWICZ MOVED TO APPROVE A LIFETIME AND TEN YEARS CERTAIN REGULAR EARLY RETIREMENT MONTHLY BENEFIT FOR JERRY S . NESTLER OF $269.17 BEGINNING MAY I , 2011 . MR. PATEL SECONDED . Ayes: Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan, Patel, Woodward None Moore Consideration of Next Meeting Date Change to August 2, 2011 City staff has requested changing the next regular board meeting from August 9 , 2011 to August 2 , 2011 to accommodate a scheduling conflict. MR. GRYGLEWICZ MOVED TO APPROVE CHANGING THE REGULAR AUGUST MEETING DATE TO AUGUST 2 , 2011 TO ACCOMMODATE STAFF SCHEDULING. MR. PATEL SECONDED. Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan , Patel , Woodward None Moore 5 of 6 Non Emergenc y Emplo yees Retirement Board Mee tin g . ' i Member Choice • Colorado Public Plan Coalition (CPPC) Conference Ms . Wescoat distributed the 2011 CPPC annual conference information. Board members that wish to attend should notify her before July 15 . MR. GRYGLEWICZ MOVED TO APPROVE EXPENSES FOR ALL BOARD MEMBERS ATTENDING THE AUGUST 2011 CPPC ANNUAL CONFERENCE. MR. PA TEL SECONDED. Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan, Patel , Woodward None Moore The next regu lar Board meeting is scheduled for August 2 , 2011. MR. GRYGLEWICZ MOVED TO ADJOURN . MAYOR WOODWARD SECONDED . Ayes: Nays : Absent: The motion carried. Bowman, Gryglewicz, Hagan , Patel, Woodward None Moore The Board adjourned at 4:55 p.m. • ~u J~ Carol Wescoat Recording Secretary • NonEmergency Emplo yees Retirement Board Meet in g 6 of6