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HomeMy WebLinkAbout2010-11-09 NEERB MINUTES• • • NONEMERGENCY EMPLOYEES RETIREMENT BOARD MEETING November 9 , 2010 Chairperson Bowman called the regular meeting of the Englewood NonEmergency Employees Retirement Plan Board to order at 3 :00 p.m . in the Public Works Conference Room of the Englewood 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 John Moore, Council Appointee (by phone) Jim Woodward , Council Member Mahendra Patel , Employee Representative (notice) Dan Brotzman , City Attorney Douglas Fiddler, Buck Consultants Wendy Dominguez, Innovest Portfolio Solutions Gordon Tewell, Innovest Portfolio Solutions * * * * * MR . GRYGLEWICZ MOVED TO APPROVE THE MINUTES OF THE AUGUST 10, 2010 REGULAR MEETING. MR. HAGAN SECONDED . Ayes : Nays : Absent: The motion carried. Bowman, Gryglewicz, Hagan, Moore, Woodward None Patel Resignation of Brandon Williams Brandon Williams submitted his resignation from the Board as he no longer lives in Englewood . Mr. Williams's term ends January 1, 2011 and the City Council will appoint a new member with the next appointments . Innovest Portfolio Solutions, LLC Ms. Dominguez presented the performance evaluation for the third quarter. Mr. Tewell reviewed the individual funds' performance during the quarter and stated this is the time of year when Innovest reviews the Investment Policy. lnnovest will present the asset allocation at the February meeting. He said it appears there is nothing of concern for any of the funds. He said Principal had higher expenses, but it is not a major concern . He said it was a good quarter and the Plan is up 7.98% for the quarter. Ms. Dominguez distributed copies of the lnnovest quarterly news letter for the Board 's information . The Board should receive copies by email. The agenda items were taken out of order to allow for Mr. Brotzman's arrival. Consideration of Retirement Benefit for Marjorie Payne Marjorie Payne was employed from July 9 , 1980 to September 30 , 20 I 0 . Ms . Payne is requesting a Special Early Retirement. ; MR. GRYGLEWICZ MOVED TO APPROVE A FIFTY PERCENT JOINT AND SURVIVOR SPECIAL EARLY RETIREMENT MONTHLY BENEFIT IN THE AMOUNT OF $1 ,874.75 BEGINNING OCTOBER 1, 2010. MR. HAGAN • SECONDED . Ayes: Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan , Moore , Woodward None Patel Consideration of DROP Benefit for Patricia Gonzales Patricia Gonzales has completed the appropriate paperwork to enter the Deferred Retirement Option Plan (DROP). Ms. Gonzales has requested a DROP beginning October I , 2010 . Ms. Gonzales was employed from November 29, 1982 to September 30, 2010 . Her last day of DROP will be September 30, 2013. MR. GRYGLEWICZ MOVED TO APPROVE THE ONE HUNDRED PERCENT (100%) JOINT AND SURVIVOR SPECIAL EARLY RETIREMENT DEFERRED RETIREMENT OPTION PLAN (DROP) MONTHLY BENEFIT IN THE AMOUNT OF $1 ,486.36 BEGINNING OCTOBER 1, 2010 . MR. HAGAN SECONDED . Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan, Moore, Woodward None Patel Mr. Brotzman arrived 3:40 p .m. Revised Beneficiary Form Chairperson Bowman provided an overview of previous discussion and issues which resulted in revising the beneficiary form. The Board discussed the proposed changes to the form . The revised form basically informs the spouse of the difference of benefits for a spouse or non-spousal beneficiary . The beneficiary form allows the spouse to waive their rights to their benefit per the Plan . MR. GRYGLEWICZ MOVED TO APPROVE THE REVISED BENEFICIARY DESIGNATION FORM . MR . HAGAN SECONDED . Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan, Moore, Woodward None Patel Mr. Fiddler, Ms. Dominguez, Mr. Tewell and Mr. Brotzman left at 3:45 p.m. Request for Proposal for Actuarial Services The Board discussed the RFPs received from Buck Consultants (Buck), Gabriel Roeder Smith and Company (GRS), Milliman and Segal Company . Mr . Gryglewicz said he preferred to eliminate Segal because the fee proposal was considerably more than the other firms . General discussions followed regarding the firms, their staff and services they would provide . The Board agreed to eliminate Segal. NonEmergency Employees Retirement Board Mee tin g 2 of3 • • .. • • • ( Mr. Moore reviewed his perspective of the RFPs. His concern is GRS has played a role in advising government plans which has led to extending unfunded liabilities beyond a reasonable period . It has created a bit of a negative bias for him . He elaborated on his concern that the Board receive and take sound advice that encourages the Board to be proactive in the addressing the Plan's obligations by properly funding the benefits promised to the members. Discussion ensued relating to a firm 's level of service and the fee charged. The Board questioned if a greater fee provides additional or higher quality of service. Mr. Gryglewicz questioned how often the firm's recommendations are based on a client's pressure to get the actuary to change the assumptions because public officials push to balance budgets by lowering funding and ultimately underfund the plans . The Board discussed its responsibilities and what each firm would provide . The Board agreed GRS and Buck would be the two finalist and request they present to the Board. The Board will prepare a list of questions for both firms. MR. GRYGLEWICZ MOVED TO APPROVE A SPECIAL BOARD MEETING AND ASK THE TWO FINALISTS, BUCK CONSULTANTS AND GABRIEL ROEDER SMITH AND COMPANY, TO PRESENT TO THE BOARD AS SOON AS POSSIBLE. MR. WOODWARD SECONDED. Ayes: Nays: Absent: The motion carried . Bowman, Gryglewicz, Hagan, Moore, Woodward None Patel The Board discussed the procedures that will be followed at the special meeting. Members Choice Chairperson Bowman would like to present a report to the Board regarding the Colorado Public Plan Coalition Conference at the next meeting . Ms . Wescoat told the Board about an ongoing problem regarding the l2B-l fees from Allianz. She explained that CAPIS, the provider that normally facilitates the fee transfer, has not been able to get Allianz 's system to transfer the fees for the first quarter and Innovest very quickly resolved the matter. She said that Innovest was instrumental in quickly resolving this when the custodial bank and CAPIS were unsuccessful after months of efforts. The next Board meeting is scheduled for February 8, 2011. MR . WOODWARD MOVED TO ADJOURN. MR. GRYGLEWICZ SECONDED. Ayes: Nays: Absent: The motion carried. Bowman, Gryglewicz, Hagan , Moore, Woodward None Patel The Board adjourned at 4 :45 p.m . 3 of3 No n Emergency Emp loyees Retirement Board Meeting