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HomeMy WebLinkAbout2009-05-12 NEERB MINUTESNONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING May 12, 2009 Chairperson Williams called the regular meeting of the Englewood Non Emerge ncy Employees Retirement Plan Board to order at 4:00 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 Adm in istrative Services Gary Bowman, Council Appointee Mahendra Patel, Employee Representative Bradley Hagan, Secretary, Employee Representative Brandon Williams, Chair person, Council Appointee John Moore, Co un cil Member (left at 5 :06 p.m .) None David Slishinsky, Buck Consultants Douglas Fiddler, Buck Consultants Wendy Dominguez, lnnovest Portfolio Solutions Gordon Tewell, Innovest Po1ifolio Solutions * * * * * MR. GRYGLEWICZ MOVED TO APPROVE THE MINUTES OF THE FEBRUARY 10, 2009 REGULAR MEETING AND MARCH 17, 2009 SPECIAL MEETING . MR . PATEL SECONDED. Ayes: Nays: Absent: The motion carried. Bowman , Gryglewicz, Hagan, Patel, Moore, Williams None None Buck Consultants January l, 2009 Actuarial Repmi Draft Mr. Fiddler reviewed the January l , 2009 actuarial report draft . The draft provides the required contribution of I 4.2% of pay beginning 20 J 0 unless consideration is given to changing the actuarial assumptions. He and Mr. Slishinsky also presented the Board with various amo1iization and actuarial assumption changes that are available that cou ld potentially reduce required contributions for 20 I 0. Discussion followed regarding changing the amortization to defer the increase of the required contribution. Some of the assumptions potentially would increa se future contributions even with a substantial market recovery. Mr. Fiddler explained that using the "w ithout a corridor method" would reduce the current required contribution but will likely increase the contribution by two percent or more per year for future years until losses are recovered . He said that Buck is not recommending that the corridor method be removed . He also suggested the Board can change the period of time the unfunded liability is amortized. Mr. Gryglewicz discussed current City budget issues impacted by the increased cost offunding the Plan. There was additional discussion regarding the funding of other City plans and the impact on the City's budget. Mr. Moore discussed his concerns with the situation and the Board reviewed the history of pa st actuarial assumptions. Additional discussion pertain ed to appropriate funding policies and the impact of changing the actuarial assumptions. The Board discussed the options available, the Bills approved at the State level to assist the Old Hire Police Officers and Firefighters Pension Plans with funding increases because of investment conditions and which of the options presented is the most appropriate to help address the current issues . MR. MOORE MOVED TO CHANGE THE ACTUARIAL FUNDING METHOD REMOVING THE CORRIDOR USED FOR ASSETS AND MAINTAIN THE DECLINING AMORTIZATION OF TWENTY YEARS FROM 2003 UNTIL 2013 WHEN THE AMORTIZATION WOULD CHANGE TO A CONSTANT TEN YEAR PERIOD. MR. GRYGLEWICZ SECONDED. Ayes: Nays: Absent: The motion carried. Investment Policy Changes Bowman , Gryglewicz, Hagan, Patel, Moore, Williams No ne None The Board previously approved changing the investment allocations and ha s reviewed the revised investment policy. MR. GRYGLEWICZ MOVED TO APPROVE REVISED INVESTMENT POLICY. MR. PA TEL SECONDED. Ayes: Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan, Patel, Moore, Williams None None lnnovest Portfolio Solutions, LLC Mr. Tewell and Ms. Dominguez presented the Capital Markets Preview and the first quarter fund performance. Mr. Moore left at 5:06 p.m. Ms. Dominguez informed the Board that Principal REIT announced th e temporary suspension of withdrawals they are allowing investors to form a queue for withdrawals . Innovest recommends the Board submit a letter of intent to withdraw in case the Board decides not to remain in the Fund when the option is presented or if an adjustment should be made based upon investment policy asset allocation target percentages . MR. GRYGLEWICZ MOVED TO SEND A LETTER TO NOTIFY PRINCIPAL U.S. PROPERTY SEPARATE ACCOUNT OF THE INTENT TO WITHDRAW ASSETS. MR . PA TEL SECONDED. Ayes: Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan, Patel, Williams None Moore Ms. Dominguez will prepare the letter to be submitted to Principal and forward to Ms. Wescoat for processing . Consideration of DROP benefit for William McCormick William McCormick was employed by the City from May I, 1973 to March 3 I, 2009. Mr. McCormick is eligible for Special Early Retirement. Mr. McCormick requested his DROP benefit begin April 1, 2009. MR. GRYGLEWICZ MOVED TO APPROVE A 100% JOINT AND SURVIVOR DROP MONTHLY BENEFIT FOR WILLIAM McCORMICK EFFECTIVE APRIL I, 2009 IN THE AMOUNT OF $3,592.90 . MR. HAGAN SECONDED. Ayes: Nays: Absent: Bowman, Gryglewicz, Hagan, Patel, Williams None Moore 2 of 3 NonEmcrgcncy Employee Retirement Board Meeting I The motion carried. Consideration of Retirement Benefit for Mary Ryan Mary Ryan did not complete the appropriate retirement paperwork prior to the meeting. The request for benefit will be considered at the next Board meeting. Notification of Death of Beverly Brizee Beverly Brizee elected a Lifetime and Ten Year Certain benefit at the time of her retirement during 1990. Ms. Brizee died on March 26, 2009 . No further benefit is due. Notification of Death of Jack Stewart Jack Stewart elected a Lifetime and Ten Year Certain benefit at the time of his retirement during 1995. Mr. Stewart died on March 27, 2009 . No further benefit is due. Colorado Public Plan Coalition Annual Conference -September 9-11 The Colorado Public Plan Coalition annual conference is scheduled for September 9 -11, 2009 in Breckenridge, Colorado. Board members wishing to attend should contact Ms. Wescoat no later than August I. MR . GRYGLEWICZ MOVED TO APPROVE USUAL EXPENSES FOR BOARD MEMBERS WHO ATTEND THE COLORADO PUBLIC PLAN COALITION ANNUAL CONFERENCE. MR. BOWMAN SECONDED. Ayes: Nays: Absent: The motion carried. NERP Employees Meeting Bowman, Gryglewicz, Hagan, Patel, Williams None Moore The Board is invited to the June 3, 2009 lunch and learn opportunity for the NonEmergency Employees Retirement Plan (NERP) active participants. Member Choice The next regular Board meeting is scheduled for August l I, 2009 . The Board adjourned at 5:25 p .m . Carol Wescoat Recording Secretary 3 of 3 NonEmergency E mploye e Retirement Board Meetin g