2012-07-10
MINUTES
CIVILIAN RETIREMENT COMMITTEE
July 10, 2012
A meeting of the Civilian Retirement committee was held on July 10, 2012 at
1:30 p.m. in the Blair Council Chamber. The meeting was called to order by City
Administrator Storm.
Those present were Pat Long, Robert Frahm, Deanna Jensen, Terry Vandry,
Gayle Roberts, City Administrator Storm, Assistant City Administrator Green and
Brenda Wheeler. Absent: None.
Motion by Frahm, second by Roberts to approve the minutes of the December 8,
2010 meeting as presented. All members present voted Aye. Motion carried.
Rick Dhabalt and Gregory Cismoski from DC Retirement Strategies were present
to discuss the activity in the funds currently managed by Principal for the Civilian
Pension plans. The plan design and current provisions of the plan were reviewed. No
changes were discussed at this time. Discussion was held regarding the coordination
with the TPA when reviewing plan provisions. It was noted communication is much
better but that everyone should continue to work to improve communication. Plan
demographics and trends were highlighted and discussed. Investment performance
was reviewed. Discussion was held regarding replacing Money Market account with
Stable Value. A list of other investment options currently available was provided for the
Committee’s reference. Plan expenses and fees were reviewed and a current total cost
summary was provided to the Committee for their records. Participant education was
discussed. The Committee asked DC Strategies to contact participants with funds in
the Money Market account explaining the potential for the fund to have a negative rate
of return and that it will be replaced by Stable Value along with Guaranteed Interest
Account (GIC) being frozen. Motion by Frahm, second by Long to replace the Money
Market account with Stable Value and freeze the Guaranteed Interest Account effective
September 1, 2012. All members present voted Aye. Motion carried.
The Committee then reviewed the plan design, plan demographics and trends
regarding the 457 Plan. Participant education was again discussed with DC Strategies
stating they would contact participants to discuss the Money Market account being
replaced by the Stable Value account along with GIC being frozen. Investment
performance, plan expenses and fees were reviewed and a list of other investment
options was provided to the Committee. Motion by Long, second by Deanna to replace
the Money Market account with Stable Value and freeze the Guaranteed Interest
Account effective September 1, 2012. All members present voted Aye. Motion carried.
Discussion was held with the Committee regarding setting regular meetings of
the Committee semi-annually in late January and late July. Civil Service Secretary
Wheeler will work with DC Retirement Strategies to schedule the first meeting in 2013.
Motion by Roberts, second by Jensen to adjourn the meeting at 2:45 p.m. All
members present voting Aye. Motion carried.