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HomeMy WebLinkAbout2007 - Deferred Compensation Committee (2/25/2008) Nancy Squier- October07 Minutes.dQc Page 1 OFFICIAL MEETING MINUTES OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Regular Meeting October 11, 2007 8`h Floor Conference Room Thursday, 9:00 a.m. City Hall Lansing, MI 48933 The meeting was called to order at 9:21 a.m. Present: Ambrose, Daniels, S Klein, Kraus -4 Others: Karen Williams, Retirement; Alan VanGorder, ING. It was moved by Mr. Ambrose and supported by Ms. Klein to approve the minutes of the Official Minutes of the Regular Deferred Compensation Committee Meeting of July 12, 2007 as submitted. E Adopted by the following vote: 4- 0. It was moved by Mr. Ambrose and supported by Ms. Klein to excuse Board member Steve McClean and Terri Singleton. i Adopted by the following vote: 4-0. Chair Kraus announced to committee meetings that members should review the subcommittees and email the chair with their interests. Chair Kraus explained that the Deferred Compensation Administrative Board suggests amendments to the Administration for the plan. The Administration has the sole authority to make changes to the Plan. Chair Kraus reported to the Board that the Deferred Compensation Plan needed an amendment to comply with the Pension Protection Act. The amendment would allow Non-Spousal beneficiary to rollover inherited 457 Plan to an IRA. The amendment needs to go to the administration so that it can go to City Council. It was moved by Mr. Ambrose and supported by Ms. Klein to request that the Administration amend the Deferred Compensation Plan to allow Non-Spousal beneficiary rollover to individual IRAs. Adopted by the following vote: 4-0. Regular Meeting October 11, 2007 81h Floor Conference Room Thursday, 9:00 a.m. Page 2 2 25Nancy Squier- October07 Minutes.doc Page 2 Karen Klein reported to the Board regarding the additional provider and survey discussion. The investment subcommittee met May 22, 2007 and discussed that the City Administration is the sole authority in deciding to add other providers. The subcommittee met with Alan VanGorder who suggested that the subcommittee consider placing all administration under one provider. Mr. Alan VanGorder explained to the board that he would like to make a proposal to have one provider for the Deferred Administration Plan. TRowe Price choices would be available under the ING umbrella. All administrative duties would be provided by Mr. VanGorder. Ms. Kraus referred the matter back to the investment subcommittee to hear the proposal by Mr. VanGorder. Karen Williams distributed the 2008 calendar for the scheduled meetings. It was moved by Mr. Ambrose and supported by Ms. Klein to approve the 2008 Meeting Schedule. Approved by the following vote: 4-0. Mr. Alan VanGorder provided an overview of his history with the City of Lansing and a presentation of the ING Annual Report. Mr. VanGorder reviewed the administrative services that he provides for the City of Lansing. Mr. VanGorder described the target date ING plans. Mr. Alan VanGorder discussed the educational options to inform employees that are offered by ING. The meeting was adjourned at 10:18 a.m. r .5/2008) Nancy Squier-July07 Minutes.doc Page 1 I OFFICIAL MEETING MINUTES OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Regular Meeting July 12, 2007 811 Floor Conference Room Thursday, 10:00 a.m. City Hall Lansing, MI 48933 The meeting was called to order at 10:29 a.m. Present: Ambrose, S Klein, Kraus, Singleton. - 4 Others: Karen Williams, Retirement; Jack Roberts, Law Office; Alan VanGorder, ING; Kim Johnson, TRowe Price. Alan VanGorder asked that the Deferred Compensation committee considers a proposal to provide a non-spousal beneficiary rollover option as a plan amendment in the event of the participant's death. A letter of intent should be provided to the Deferred Compensation Plan to allow this provision as an enhancement for single inviduals. Ms. Kraus referred the proposal to the administrative subcommittee and legal counsel. It was moved by Mr. Ambrose and supported by Ms. Singleton to approve the minutes of the Regular Deferred Compensation Committee Meeting of April 134, 2007 as submitted. Adopted by the following vote: 4- 0. It was moved by Mr. Ambrose and supported by Mr. Klein to excuse Board member ` Karen Klein. Adopted by the following vote: 4-0. Chair Kraus requested that the Retirement Analyst have the Deferred Compensation Committee Election completed by October 1, 2007 for the next meeting. Chair Kraus reviewed the election posting and the procedures for the election. The Board discussed suggestions and wording for the posting. Chair Kraus would like a full committee in place to make changes to the administrative rules. Regular Meeting July 12, 2007 8tn Floor Conference Room Thursday, 10:00 a.m. Page 2 (2/25/2008) Nancy Squier-July07 Minutes.doc Page 2 Jack Roberts advised that currently the Mayor has the authority to change the rules. Kim Johnson introduced herself as the new relationship manager for TRowe Price. Ms. Johnson presented and reviewed the TRowe Price Annual Report and outlined retirement plan services. E Ms. Singleton inquired about investment services that are available to employees. Ms. Johnson described the educational employee meetings that are offered by TRowe Price and personalized statements for employees. The Board discussed possible automatic enrollment of participants. Ms. Johnson reviewed the participation levels for the TRowe Price Deferred Compensation plans. Chairperson Kraus expressed concern regarding TRowe Price taking a more proactive effort to increase and maintain participation with City employees. The meeting was adjourned at 11:47 a.m. f E (2 25 2008) Nancy Squier- February07 Minutes.doc Page 1 j OFFICIAL MEETING MINUTES OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Regular Meeting February 8, 2007 811 Floor Conference Room Thursday, 9:00 a.m. City Hall Lansing, MI 48933 The meeting was called to order at 9:10 a.m. Present: Kraus, K. Klein, Singleton. Others: Karen Williams, Retirement; Jack Roberts, Law Office, Brian Mossalam, Scott Davis, AXA Advisors; Alan VanGorder, ING. Absent: Ambrose, S. Klein There were no public comments. Chair Kraus asked that the Board review the minutes of the Regular Meetings of July 13, 2006, October 12, 2006 and December 14, 2006. Ms. Kraus advised the Board that one motion can be used to approve all the minutes together. It was moved by Ms. Singleton and supported by Ms. Klein to approve the minutes of the Regular Meetings of July 13, 2006, October 12, 2006 and December 14, 2006. Adopted by the following vote: unanimously It was moved by Ms. Singleton and supported by Ms. Klein to excuse committee members as listed in the Regular Meeting minutes of July 13, 2006, October 12, 2006 and December 14, 2006. Adopted by the following vote: unanimously Mr. Scott Davis and Mr. Brian Mosallam provided a presentation of the AXA Advisor Investment services. AXA Advisors would like to be considered as a third provider to the City of Lansing Deferred Compensation plans. Mr. Mosallam stated that the AXA Advisors office in Okemos has a strong presence with local municipalities and school districts. Chairperson Kraus provided an overview of the current Deferred Compensation plans regarding management of the daily administration and paperwork. Mr. Mosallam explained to the Committee that many of the administrative duties can be as automated (2/25/2008) Nancy Squier- February07 Minutes.doc — Page 2 j as the City would allow. Chairperson Kraus explained that the Deferred Compensation Committee is currently in transition and not currently looking to add to the present plan. However, AXA presentation would be taken under advisement. Chairperson Kraus advised the Committee that she talked with Jerry Ambrose regarding the current vacancies. Chairperson Kraus tabled the sub-committee assignments until the Administrative Rules are completed. Chairperson Kraus distributed the proposed administrative rules and ask that the Committee review the draft for the next meeting. It was moved by Ms. Klein and supported by Ms. Singleton to review and update the Administrative Rules for the Deferred Compensation Committee. Adopted by the following vote: unanimously Jack Roberts advised that the Deferred Compensation Document plan should also be reviewed in regards to changes in administrative rules. The meeting was adjourned at 10:28 a.m. (2/25/2008) Nancy Squier-Apri107 Minutes.doc Page 1 OFFICIAL MEETING MINUTES OF THE CITY OF LANSING DEFERRED COMPENSATION COMMITTEE Regular Meeting April 13, 2007 811 Floor Conference Room Friday, 9:00 a.m. City Hall Lansing, MI 48933 The meeting was called to order at 9:14 a.m. Present: Ambrose, Kraus, K. Klein, S. Klein, Singleton. - 5 Others: Karen Williams, Retirement; Jack Roberts, Law Office; Alan VanGorder, ING. There were no public comments. It was moved by Ms. K. Klein and supported by Mr. Steve Klein to approve the minutes of the Regular Meeting of February 8, 2007. Adopted by the following vote: unanimously Chair Kraus reviewed the Administrative Rules for the Deferred Compensation Committee. Ms. Kraus discussed changing the membership rules to allow for union units to run for election to the Board instead of only union locals. It was moved by Mr. Ambrose and supported by Ms. Singleton to table the administrative rules until the administration subcommittee meets. Adopted by the following vote: 5 — 0. i Ms. K. Klein reported to the Board that she has received inquiries about having another provider added to the selections offered by the City. Ms. Klein suggested surveying employees to determine if there is enough interest to provide a third provider. Chairperson Kraus asked that Ms. Klein be added to the investment subcommittee on an interim basis and that the committee review the additional provider suggestion. Ms. Klein was asked to prepare the survey and the subcommittee would meet and review it. Regular Meeting April 13, 2007 8'h Floor Conference Room Friday, 9:00 a.m. Page 2 i Mr. Ambrose inquired about the participation levels for the Deferred Compensation plans. (2/25/2008) Nancy Squier-Apri107 Minutes.doc _ Page 2 Mr. Alan VanGorder reported to the Board that participation is lowest among hourly employees and forestry, parks and public service departments. Mr. VanGorder i requested to bring a proposal forward to the Investment subcommittee to address the participation levels. Chairperson Kraus requested that the final sub-committee assignments remain tabled. Ms. Kraus asked that the Board vote upon the election of a vice-chair. Mr. S. Klein nominated K. Klein as vice-chair. t It was moved by S. Klein and supported by Ms. Singleton to approve K. Klein as vice chair. Adopted by the following vote: 5-0 Attorney Jack Roberts distributed information and advised the board regarding I.R.S Hardship guidelines regarding withdrawal of 457 funds. Chairperson Kraus requested the information be brought before the entire board so that members have an understanding of hardship rules. Attorney Jack Roberts advised that a hardship formal policy should be in place and that policy should be in writing. Chairperson Kraus discussed the current hardship application process. Mr. Ambrose expressed concern that employees may come to board members for advice. Mr. Ambrose inquired about what types of financial hardships are included in the I.R.S. guidelines. Attorney Jack Roberts reviewed examples such as avoiding bankruptcy or similar financial difficulties may not be used to withdraw monies. Mr. Alan VanGorder added that the 457 plans can not be attached and do not have the same provisions as defined benefit or 401 K plans. The meeting was adjourned at 9:53 a.m. E E