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HomeMy WebLinkAbout1999 - Defined Contribution Plan Minutes Money Purchase Plan/Defined Contribution Plan Minutes Minutes of November 18 1999 The Board met in regular session and was called to order at 1:35p:m. . . or Present: Susan Brownlee, Brenda Fernholz, Antonia Magistrb,'David-Wiener;. ;; Doug Rubley (arrived at 1:50pm) Absent: Sharon Bommarito, Robert Swanson, Also present: Mike Pavlik, Gary Gustafson, Jack Jordan. Approval of October 28 1999 Minutes: Moved by Ms. Fernholz, Seconded by Ms. Magistro. Unanimously approved with the following changes: - delete the (?) next to Ms. Magistro in the 5`h sentence of the Administrative subcommittee report. - delete (elected?) from the last sentence of the Administrative subcommittee report. Public Comments: none Sub Committee Reports: Education: 4 people attended the November 17 Brown Bag seminars. There will not be a December seminar. The seminars will begin again in January. This seminar was video taped for future viewing. We expect that the future seminars will also be taped. Ms. Fernholz has agreed to keep the tape in the District Court and will also have the handouts available. The Board discussed ways to advertise Brown Bag lunch seminars and the availability of tape: article in next newsletter, paycheck stuffers, GroupWise email, voice mail. Question was raised if we can set up an archive of information in retirement office for Brown Bag seminar handouts Discussion ensued as to what should be in newsletter article, brown bag schedule, tape availability, reminders to seek a certified financial planner, availability of fee reimbursement through union contract, possible feature article. Dave Wiener will speak with Sheila Ide about a feature article on the Governing Board. Investment: no report Administrative: Review of DCP letterhead. The letterhead will be used for membership mailings or contact with Comerica, Foster Swift, etc. Draft of letter to members with 100% of contributions in the Investment Contract Fund reminding them of other plan options. Comerica Report: Mike Pavlik gave the Financial Report, discussed quartile rankings for our funds. Discussion of various ways to rate funds. Small company value funds currently not in favor. November 18 1999 minutes page 2 Discussed ability to add more funds to broaden selection. Board members voiced concern about a change in the fee structure if we added more funds. Mike said he would check to see if lie could do something about that. Mr. Rubley and Ms. Brownlee requested quartile information on a quarterly basis for Board review and for Investment sub committee review. Old Business Written opinion from Law not ready on the ability to use plan forfeiture funds. The Board will provide a written request to the Law department for an opinion on whether the Board can use the forfeiture funds for administrative costs of the system, member fees. Also need to know whether the Board can enact the plan change or if requires a Council resolution. If resolution is necessary, then Law will be directed to prepare the resolution. New Business: Discussion of ERS use of plan assets for education and training. Question raised as to whether DCP assets (forfeiture funds) could be used or whether we could use funds from ERS and Police & Fire Systems for DCP Board member education and training. Adjourned at 2:45 p.m. Respectfully submitted Antonia Magistro Vice Chair MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN MINUTES _ MEETING OF DECEMBER 16, 1999 The Bog-d-iiie�t iA r6gu7arsession and was called to order at 1:10 p.m. N.-F A,.se,r Present: Brenda Fernholz, Amy Magistro, Doug Rubley, David Wiener, Bob Swanson, Gary Gustafson Absent: Sharon Bommarito The education committee updated the board about reviewing the tape presentation on Financial Health given at the Brown Bag presentation. The administration committeg'stated that a letter was sent out to members who were in the 100% contract reminding them of other investment options. It was moved by Mr. Rubley and seconded by Ms. Magistro to approve the meeting dates for 2000. Adopted Unanimously. It was moved by Mr. Rubley and seconded by Ms. Magistro to post pone election of Chair and Vice-Chair until the April meeting. Adopted Unanimously. The board suggested that the administration committefFlook at the possibility of having members appointed for three years and to change the by-laws so the make-up of the board could consist of members from more than one union. The meeting adjourned at 1:38 p.m. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN MINUTES MEETING OF SEPTEMBER 23, 1999 The Board met in regular session and was called to order at 1:12 p.m. Present: Sharon Bommarito, Brenda Fernholz, Amy Magistro, Doug Rubley, David Wiener, Bob Swanson, Gary Gustafson, Jack Jordan Absent: Susan Brownlee It was moved by Amy Magistro supported by Sharon Bommarito to approve the minutes of the regular meeting of 999. Adopted unanimously: At^5 c.Y.- The investment committee recommended to continue using the Guaranteed Income Fund as a default action for monies not invested into specific investments. Doug Rubley made a motion supported by Brenda Fernholz to approve this recommendation. Adopted unanimously: It was moved by Doug Rubley supported by Dave Wiener to have the administration committee take appropriate action to allow the forfeiture money to be used for administrative purposes. T-, TO a�,/'%, e��. Adopted unanimously: f P- t,,S e t,,, �-0e,, r ry ce•.r The education committee briefly update the board about the upcoming brown bag presentations. Jon Dowling (Interim City Engineer) submitted his resignation to the City as he accepted the position of City Engineer with the City of Jackson. The Board noted his resignation as he was a member of this pension plan. The meeting adjourned at 1:40 p.m. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN MINUTES MEETING OF AUGUST 26, 1999 The Board met in regular session and was called to order at 1:14 p.m. by Ms. Magistro Present: Sharon Bommarito, Brenda Fernholz, Amy Magistro, David Wiener Gary Gustafson, Jack Jordan, Mike Pavlick Absent: Susan Brownlee, Doug Rubley, Bob Swanson Brenda Fernholz gave the education committee update concerning the starting of the Brown Bag luncheon presentations. She presented a proposed monthly schedule and the topics are to be determined in conjunction with Comerica. The question was brought before the DCMPPP Board as to whether they wanted to participate with the ERS, P&F, and DEFERRED Boards in conducting Retirement Planning Seminars. It was agreed unanimously to participate with the other Boards with the Education Committee coordinating for the DCMPPP Board. No reports were given from the Investment and Administrative Committee as they did not meet. Mike Pavlick from Comerica gave the Investment Report including the performance of the various funds and the types of investments being selected. Sharon Bommarito made a motion seconded by David Wiener for the plan administrator to find that Trudy Rogers meets the definition of total and permanent disability per Article 13 of the Master Plan which requires 100% of her balance be paid to her Beneficiaries. It was approved unanimously. The meeting adjourned at 1:50 p.m. MEETING July 22, 1999 1 Money Purchase Plan/Defined Contribution Plan Minutes Present: Sharon Bommarito,Brenda Femholz,Susan Brownlee,Antonia Magistro Gary Gustafson,Denise Schroeder,Jack Jordan Absent: Bob Swanson,Doug Rubley,David Wiener Visitors: none Members: none Meeting called to order at 1:35 p.m.by Ms.Magistro. Minutes of June 24, 1999 meeting were distributed. Moved by S.Bommarito,seconded by B.Femholz,to approve the minutes of June 24, 1999. Approved unanimously Committee Reports: Investment Committee: none. Education Subcommittee: none. Administrative Committee: Meeting June 29th was held with Attorney S.Stein,D.Rubley,A.Magistro,and M.Pavlick. Ms.Stein reviewed the existing Adoption Agreement and Plan,suggested that we get the Chief Judge's signature on our new amended plan,when adopted,to recognize coverage for Court employees. City of Lansing Plan is exempt from ERISA requirements,so we don't need the discrimination testing. We can submit the prototype agreement to the IRS and then submit amendments specific to the City,but the deadline for plan revisions has been extended to the end of the 2000 plan year(from December 31, 1999 to December 31,2000). Ms. Schroeder suggested that we should formally identify any changes we might want to accelerate,such as the use of forfeited funds. Our plan document stands until the law changes-and there have been several changes since the plan was initially adopted. Comerica Services: Ms. Schroeder distributed and reviewed document showing investment profile of all funds by fund type. Discussion followed on recent WSJ article noting importance of fund fees relative to performance. Rulings on fiduciary responsibilities(section 404(c))offer minimal relief provided the plan offers at least three options for investors (bond fund,index fund,contract fund). Beyond that,courts are looking at challenges on a case-by-case basis. Section 404(C)is not blanket absolution: doesn't cover definition of training or investor education requirements, and still leaves plan administration responsible for fund performance evaluation. Old Business: 1) Requisitions for professional services(legal consultation;Comerica testing)-Ms. Femholz gave requisition numbers to Ms.Magistro for processing. 2) Still need formal letter from Mayor appointing Ms.Magistro to fill vacant elective position. 3) P.A. 55 Requires annual update to be sent to all participants as well -pending response from Law(do we have to copy and mail to all participants?). New Business: none. Meeting adjourned at 2:15 pm. Next meeting to be held Thursday August 26, 1999. MEETING June 24, 1999 Money Purchase Plan/Defined Contribution Plan 1 Minutes Present: Doug Rubley, Sharon Bommarito,Brenda Fernholz,Susan Brownlee, MagistroDavid Wiener,Antonia Gary Gustafson,Mike Pavlick,Jack Jordan Absent: Bob Swanson Visitors: none Members: none Meeting called to order at 1:40 p.m. by Ms. Magistro. Minutes of February 25, 1999 meeting,and of April 22, 1999 meeting were distributed. Moved by D. Rubley,seconded by B. Fernholz, to approve the minutes of February25 Moved b D. , 1999. Y Rubley,seconded by S. Brownlee, to approve the minutes of April 22, 1999. Approved unanimously Meeting of May 27th was cancelled due to lack of quorum. Approved unanimously Committee ReDor t Investment Committee: none. Need to meet regarding investment choice. Meeting o e scheduled or after July 12,ance 1�999, wheon of n funds, default Brownlee returns from her vacation. Administrative Committee: Meeting of June 18th with attorney had to be reschedu to be addressed in plan amendments: led for June 29th. Issues Eligible groups-add District Court to language Part-time employee eligibility Initial waiting period Payment of administrative fees Use of forfeited funds from employees failing to complete three-year vesting requirement Transfer of employees from/to different bargaining units with different retirement systems-clarify position on having to leave 0 employment withdrawing funds from Defined Contribution Plan, General Employees' before Retirement System, or Police&Fire Retirement System. Education Subcommittee: Ms. Fernholz reported that we had no general members in attendance at the final Brown of the spring on General Investment Principles. Seminar to be rescheduled as opening topic with more advance publicity. Bag lunch seminar Education Committee to meet and set fall schedule and othepr�topi se of bet oveOred ber, Comerica Services: Mr. Pavlick has been assigned as the full-time customer contact for the City distributing routine results,he noted that the Investment Subcommittee might wish to rev' and International Equity of Lansing MPP at Comerica. In 9 ty Fund in the proposed performance evaluations. review Munder Balance Fund General discussion on the overall conservative investment profile of the plan. unusual for some plans to be weighted more conservatively,g p Mr. Pavlick noted that it is not education. If we do decide to change funds, we would need to give at least one y, but our profile should change somewhat with increased quarter's(three MEETING June 24, 1999 2 months)notice to participants,allowing them to review alternate investments as well as the proposed change to a different fund for that area of investment. Brief discussion on costs with different options or increased options. Compensation test has not been completed;still awaiting information from City(?). Ms.Fernholz to enter purchase order for the Board re: Comerica test and for legal services relating to plan update. Mr.Pavlick distributed copies of new statement format and reviewed them with Board members. Old Business: a. Legal update-see Administrative Committee report. b. Election-Ms.Magistro was the only one to pick up a ballot. Need letter from Mayor reappointing her to vacant position. New Business: P.A. 55 Requires annual update to be sent to all participants as well. -question for Law-do we have to copy and mail to all participants? Meeting adjourned at 2:20 pm. Next meeting to be held Thursday July 22, 1999. DEFINED CONTRIBUTION MONEY PURCHASE PENSION-P&OW:IV E.D AGENDA 25 Pi°I 1 25 MAY 27, 1999 LANSIU0 CITY CLERK 8th Floor Conference Room 1:30 p.m. 1. Call to order 2. Approval of Minutes 13. Public Comments 4. Reports 5. Comerica Services (D. Schroeder) 6. Old business a. Legal Services Update 7. New business 8. Pending a. February Minutes Approval CANCELLED (NO QUORUM) MEETING April 357, 1999 1 Money Purchase Plan/Defined Contribution Plan Minutes Present: Doug Rubley, Sharon Bommarito,Brenda Fernholz, Susan Brownlee, Gary Gustafson, Mike Pavlick Absent: David Wiener,Bob Swanson,Antonia Magistro Visitors: Mike Parker Members: none Meeting called to order at 1:45 p.m.by Mr.Rubley,in the absence of Chairperson Swanson and Vice Chairperson Magistro. Minutes of 2/25/99 meeting not available-to show as pending on next agenda. Meeting of March 25th was cancelled due to lack of quorum. Committee Reports: Investment Committee: none. Need to meet regarding two issues:performance evaluation of funds,and default investment choice. Administrative Committee: Need to meet re: changes in Master Plan and Plan amendments,prior to meeting with Ms. Stein. Issues to be addressed in plan amendments: Eligible groups-add District Court to language Part-time employee eligibility Initial waiting period Payment of administrative fees Use of forfeited funds from employees failing to complete three-year vesting requirement Education Subcommittee: Ms. Fernholz reported that we have had fifteen to twenty people in attendance at each brown bag lunch seminar. Next scheduled meeting will be May 12,discussing General Investment Principles. Comerica Services: Month-end reports for February and March 1999 were distributed. Mr. Pavlick noted that the Munder Balance Fund performance has been lower than others in that category, since the fund is primarily invested in mid/small cap companies,rather than the large cap companies. The International Equity fund is doing better,based on the Japanese market resurgence. Compensation test has not been completed;still awaiting information from City(?) Old Business: a. letter to General Services Committee-sent March 31. Copies distributed. Was on Ways and Means agenda on April 14th;received and placed on file by Ways and Means,referred to General Services committee. b. Legal update-see Administrative Committee report. C. Election-Ms. Magistro was the only one to pick up a ballot. Need letter from Mayor reappointing her to vacant position. 2 MEETING April 20, 1999 2 New Business: Mr.Rubley noted that Administrative Subcommittee will need to enter P.O. for legal work and test prior to June 30th,or else the funds will lapse back to fund balance. Both lie and Mr. Swanson will be unavailable June 30th. Meeting adjourned at 2:07 pm. Next meeting to be held Thursday May 27, 1999. March 31, 1999 City Council President Tony Benavides Lansing City Council 1 Oth Floor City Hall Lansing,MI 48933 Dear Council President Benavides: At the December 2, 1998 meeting of the General Services Committee, a report from Bublitz and Company P.C.,was received and discussed. The report was then referred to the Defined Contribution Money Purchase Pension Plan Adminstrative Board for their response and reaction. At the December 17, 1998 meeting of the Board,the report,and the system itself,was discussed at length by both Board members and members of the Plan who attended the meeting. The final motion of the Board was as follows: "To return the report to General Services Committee and City Council with no comment except that this Board only has the authority to address the administrative issues of(future)fees,and deposit timing,and that these matters will be dealt with in the Plan restatement which will be completed before the end of December, 1999. The Board has no comment on the questions of possible misrepresentation in the original presentation of the Plan, or the conclusions reached in the report by Bublitz and Company." Adopted by a vote of three ayes,no nayes,two abstaining,and two absent. As an Administrative Board,we have the authority to act on the administrative issues raised in the complaint:the timing of deposits,and the issue of fees. Deposits are now being made monthly, a change instituted last year. Fees will be addressed in the plan update, currently being revised. Revisions must be completed by December 31, 1999, and substantive changes will be reported back to Council for their adoption. An ordinance specifically addressing the Defined Contribution Retirement Plan is also under consideration by the Law Department. Please return our response to the General Services Committee for their further consideration. Thank you. Sincerely, Robert W. Swanson, Chairperson Money Purchase Pension Plan Administrative Board i I.[l LIE, t r- - �� DEFINED CONTRIBUTION MONEY PURCHASE PENPl1��L N AGENDA �b AN 11: 55 MARCH 25, 1999 LANSING CITY CLERK 8th Floor Conference Room 1:30 p.m. 1. Call to order 2. Approval of Minutes 3. Reports 4. Comerica Services (D. Schroeder) 5. Old business a. Legal Services Update 6. New business CANCELLED (NO QUORUM MEETING February 25, 1999 1 Money Purchase Plan/Defined Contribution Plan Minutes Present: Doug Rubley, Sharon Bommarito,Brenda Fernholz, Susan Brownlee,Antonia Magistro, David Wiener,Bob Swanson Jack Jordan,Gary Gustafson Absent: none Visitors: none Members: none Meeting called to order at 1:45 p.m.by Chairperson Swanson. Minutes of 12/17/98 meeting and 1/28/99 meeting were approved unanimously as corrected. Committee Reports: Investment Committee-none. Administrative Committee: Sherry Stein,Attorney who has worked on the Comerica prototype Master Plan,says that the approved version has not yet been received back from the IRS;should be available before mid-summer. Fees as cited in November 1993 letter are still valid: $1,200-$1,600 to restate Plan; $125 filing fee;$170/hour for Attorney Stein's time on specific changes for our needs. Issues to be addressed in plan amendments: Eligible groups-add District Court to language Part-time employee eligibility Initial waiting period Payment of administrative fees Use of forfeited funds from employees failing to complete three- year vesting requirement Mr. Rubley noted that this is the law firm recommended by the City Attorney's Office. Mr. Jordan noted that the Attorney's office would like to reiterate their recommendation that we draft a new ordinance for this Plan. Mr Rubley asked if the ordinance could adopt the new Master Plan, and Mr Jordan suggested that we add that question to a list for Ms. Stein. Mr.Rubley also reported that we would be doing the ACP test for just 1998. Ms Schroeder said that we could not be certain whether or not we could meet the test without actually doing it. Education Subcommittee: Ms. Fernholz reported that sixteen people attended the first brown bag lunch seminar,and that all agreed that we had in fact learned something from the presentation. Problems noted with overhead projector and screen will be addressed with Mr.Wilson prior to next seminar. Comerica Services: Month-end report for January 1999 was distributed. Ms. Schroeder noted reminder that we would be switching to quarterly statements after March 31st. Ms. Stein has told her that the IRS has granted an informal extension for restatement of plans, since the IRS is still double-checking prototypes. However, the City of Lansing has been under an extension, so we will probably still have to meet the December 31, 1999 deadline for development of a plan restatement. Estimated time for Ms. Stein to do revisions,approximately 4 hours, possibly with some additional paralegal assistance. MEETING February 25, 1999 2 Old Business: a. letter to General Services Committee-not yet finalized. New Business: Election dates-letter to go out next week;nominating petitions available in the retirement office. Ms.Magistro will file a letter of interest in continuing with the Board,should there be no alternative elective interest. Meeting adjourned at 2:20 pm. Next meeting to be held Thursday March 25, 1999. MEETING January 28, 1999 1 Money Purchase Plan/Defined Contribution Plan Minutes Present: Doug Rubley,Sharon Bommarito,Brenda Fernholz,Susan Brownlee,Antonia Magistro, Jack Jordan,Gary Gustafson Absent: David Wiener Bob Swanson Visitors: none Members: none Meeting called to order at 1:38 p.m.by Vice-Chairperson Magistro. Minutes of 12/18/98 meeting were not available for approval. Committee Reports: Investment Committee-none. Administrative Committee:meeting coming up. Education Subcommittee: Brown Bag meetings scheduled for once a month,Wednesday lunch hour, in Council Chambers. We will provide lemonade and cookies(need account for budget). Meetings will be held: February 10, 1999 Reading Monthly Statements March 10, 1999 April 14, 1999 May 12, 1999 Format will be a 30 minute presentation by Ms.Schroeder, followed by 15 minutes(or more if necessary)for question and answer period. Flyers will be posted on bulletin boards and added as payroll stuffers. Input on additional topics will be sought through surveys at the first meeting. May take a break over the summer months, and start up again in September. Old Business: A. Legal fees transfer signed. Need to get quotes from firms cited last month. B. Need letter to General Services Committee. Draft to be prepared by(Acting)Recording Secretary,and copied to all Board members before next meeting. C. Average Compensation Test-one certain failure in 1998 year. Mr. Rubley wanted to know if we could just refund the contribution of that highly compensated individual? and do we need to test prior years? (Ms. Schroeder not available this meeting-business trip out of state.) New Business: Recommended by Mr. Rubley with concurrence of other board members,that the Investment committee determine a definition of performance criteria by which to measure performance of the funds offered in the Plan, and to determine a suitable period for systematic review of performance against these objectives and industry indices on a regular basis. Next meeting agenda to include May elections-schedule and logistics. Meeting adjourned at 2 pm. Next meeting to be held Thursday February 25, 1999.