HomeMy WebLinkAbout2007 - Defined Contribution Plan Minutes MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN MINUTES
MEETING OF JANUARY 4, 2007
The Board met in regular session and was called to order at 9:17 a.m.
Present: Trustees: Bill Barkyoumb, Faith Rach, Steve Schuster, Terri Singleton - 4
Absent: Jerry Ambrose
Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department.
It was moved by Ms. Rach and supported by Mr. Baryoumb to approve the minutes as received.
Motion Adopted: 3 yeas, 1 abstained
The Defined Contribution Money Purchase Pension Plan Committee received a report of the
Actuarial Report of the VEBA Pre-funding of Health Care Status, as of December 31, 2006
prepared by Gabriel, Roeder, Smith and Company. Mr. Schuster requested that Board members
have the opportunity of to review the report to discuss at a future meeting.
Cam Honer from Comerica was not present. The Committee requested information from
Comerica regarding the exact number of people, totals by type of investments, and forfeiture
funds.
Jack Roberts advised that if a participant's balance fell below $5,000, then the participant's
account would be closed. Jack Roberts reviewed the process that determines the Elected
Officials salaries and retirement issues through the Elected Officers Compensation Committee.
Ms. Singleton inquired if a group could transfer from the Defined Benefit Plan to the Defined
Contribution Plan. Jack Roberts advised that a group could not go in to Defined Contribution
Plan "as is" because the Plan is closed.
It was moved by Mr. Barkyoumb and supported by Ms. Singleton to excuse Mr. Ambrose from
the meeting.
Motion Adopted: Unanimously
Jack Roberts advised that Administrative Board regarding the Committee vacancies and
membership. Mr. Roberts reviewed the history of the Defined Contribution Plan Committee.
Mayor McKane established the committee in 1990. The Board was re-established by Mayor
Hollister. The Mayor needs to re-establish the Board again with the positions from the
administration that should be included on the Board. The Mayor is the administrator of the
Defined Contribution Plan and delegated the daily administration to the Board.
Jack Roberts inquired to the Board regarding if there were separate rules of procedure for the
VEBA Board and how the Board was created. It was determined that there are no separate rules
of procedure and the VEBA Board creation was established by the Ordinance. Jack Roberts will
review and confine this information.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
MEETING OF MARCH 1, 2007
The Board met in regular session and was called to order at 9:14 a.m.
Present: Trustees: Jerry Ainbrose, Bill Barkyoumb, Steve Schuster, Terri Singleton- 4.
Absent: Faith Rach
Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Cam Hom_ er,
Comerica
It was moved by Terri Singleton and supported by Bill Barkyoumb to approve the minutes as
written for January 4, 2007.
Motion Adopted: 4-0
The Administrative Board discussed the VEBA Actuary Report. Jerry Ambrose gave an
overview of the Report regarding pre-funding for retiree health care obligations. There is a $5
million gap per annum to fully fund future health care costs. The Board discussed the
background of the VEBA. The City has the ability to pay for the health care of retirees who
were hired after 1990, other than UAW, Police or Fire members.
Cain Honer advised that the VEBA has approximately five million dollars. Jack Roberts advised
the Board that the 4% of salary concept was intended for employees that worked for 25 years.
These monies would fund the retiree's health care. Jack Roberts explained the Gabriel, Roeder
and Smith Actuary Report for pre-funding of health care covers all employees except Police and
Fire. There are separate sections for VEBA, prior to 1990 and UAW.
It was moved by Terri Singleton and supported by Jerry Arnbrose to have Gabriel, Roeder and
Smith to review the Prefunding of Health Care Report after the next valuation is completed
through December 31, 2006.
Adopted the following vote: 4-0
The Board discussed the timeline and process having Gabriel, Roeder and Smith to prepare the
next valuation as of December 31, 2006, Jerry Ambrose advised the Board that the
Administration believes that there should be a separate trust set up for the retiree health care
obligation.
Cam Honer of Comerica updated the Board regarding the Money Purchase Plan and the
Forfeiture Account. There are currently 159 participants. Ms. Honer explained how the
Forfeiture Account funds are established. Cam Honer discussed the Channel Report that details
the mode of how participants access their accounts. Ms. Honer reviewed the LifeStyle and Asset
Allocation funds.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
REPORT OF THE COMMITTEE OF THE WHOLE
MEETING OF MAY 3, 2007
The Board met in regular session and was called to order at 9:19 a.m.
Present: Trustees: Bill Barkyoumb, Faith Rach, Terri Singleton, Steve Schuster (9:29)- 4.
Absent: Jerry Ambrose
Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Cam-Homer,
Comerica; Robert J. Kay, World Asset Management
The approval of the Defined Contribution Money Purchase Plan Administrative, Board
Committee Meeting Minutes for March 1, 2007 was tabled until next meeting.
It was moved by Faith Rach and supported by Bill Barkyoumb to convene a Committee of the
Whole meeting to receive inforination from World Asset Management.
Mr. Robert Kay-, World Asset Management presented the performance review for the VEBA
account managed by World Asset Management. The VEBA has approximately six million
dollars. Mr. Kay provided an overview of the types.of investments in the VEBA 584 Collective
Trust fund. Mr. Kay reviewed the Administrative Board investment objective and fee structure.
The fund is established to track such investment benchmarks of Standard and Poors, Lehman
Aggregate.
Cam Honer of Comerica updated the Board and reviewed the quarterly Money Purchase Plan
and the Forfeiture Account. There are currently 143 participants and decreases of assets are
attributable to distributions to participants. Cam Honer reviewed the Channel Report that details
the anode of how participants access their accounts.
Jack Roberts advised the Board that the Elected Officers Compensation Committee had met, but
did not snake ariy changes that would affect the membership in the Money Purchase Plan for
elected officials. Ten people that include the elected officials, city clerk and the mayor are active
participants in the plan.
Jack Roberts inquired about the small balances in the Money Purchase Plan, to determine if these
amounts were residuals and how many of these accounts are under $1,000. There were
approximately 25 people. Due to the IRS rules for involuntary termination, the Administrative
Board will determine if these low balance residual funds need to be distributed to a rollover
account.
The meeting adjourned at 10:36 a.m.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF JULY 5, 2007
The Board met in regular session and was called to order at 9:11 a.m.
Present: Members: Jerry Ambrose, Bill Barkyoumb, Faith Rach, Temi Singleton- 4.
Absent:
Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Cam Honer,
Comerica.
The Board discussed the departure of Mr. Steve Schuster from the City of Lansing. Jack Roberts
will research if city employment is a condition of Mr. Schuster's membership on- the
Administrative Board.
It was moved by Mr. Ambrose and supported by Ms. Rach to have the Vice Chair assume the
responsibilities of the Chair of the Board and authorize the Vice Chair to be the signatore on.the
behalf of the Board.
Adopted by the following vote: 4-0
The Board deferred the election of the new chairperson until Jack Roberts researches Mr.
Schuster's membership status on the Administrative Board.
It was moved by Mr. Ambrose and supported by Ms. Rach to approve the Defined Contribution
Money Purchase Plan Administrative Board Committee Meeting Minutes for March 1, 2007
Adopted by the following vote: 4-0
It was moved by Mr. Ambrose and supported by Ms. Rach to approve the Committee of the
Whole meeting minutes of May 3, 2007 as amended.
Adopted by the following vote: 4-0
Jack Roberts reported to the Administrative Board that he received from Comerica on behalf of
the Board a list of people in the Money Purchase plan with small balances. The list was
distributed to the membership. Jack Roberts advised that he will review the IRS rules regarding
people with less than $1,000 and involuntary termination. People with balances between $1,000
and $5,000 must be given the opportunity to rollover these funds to an IRA.
It was moved by Mr. Ambrose and supported by Ms. Rach to authorize distributions for
participants who are less than $1,000 excluding active participants. Participants will be provided
appropriate notice and given 30 days for a response.
Adopted by the following vote: 4-0
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF JULY 5, 2007 (PAGE 3)
The board discussed if the VEBA Plan had a separate governing board. Jack Roberts advised
that he believed that the VEBA Plan has its own governing board and it is the same membership
as the Defined Contribution Money Purchase Pension plan. The Board discussed whether there
are two separate plans with one governing board or two separate plans with its own governing
boards. Faith Rach expressed concern and provided the history of the VEBA plan. Ms. Rach
stated that there are two separate plans administered one governing board.
The meeting was reconvened at 10:26 a.m.
It was moved by Mr. Ambrose and supported by Ms. Rach to rescind the motion to adjourn the
meeting.
Adopted by the following vote: 4 - 0
Jack Roberts provided a history of the post-retirement health care and reviewed the Voluntary
Employees Beneficiary Association (VEBA) plan amendments. The Board discussed the
premium share plan for employees hired after July 1, 2007. The Board discussed whether
receiving an accumulated contribution refund would disqualify a defined contribution vested
member from receiving health care. Ms. Rach expressed concern regarding 2.02 E and how it
would affect vested defined contributions members who received their accumulated
contributions.
It was moved by Mr. Ambrose and supported by Ms. Singleton to approve the post-retirement
health care plan and trust agreement plan with the exception of Section 2.02E until further
research and advice of law.
Adopted by the following vote: 4-0.
It was moved by Mr. Ambrose and supported by Ms. Rach to adjourn the meeting.
Adopted by the following vote: 4-0.
The meeting adjourned at 11:47 a.m.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF OCTOBER 4, 2007 (REVISED)
The Board met in regular session and was called to order at 9:20 a.m.
Present: Members: Jerry Ambrose, Bill Barkyoumb, Faith Rach, Terri Singleton- 4.
Absent:
Others: Karen E. Williams, Finance Department; Cam Honer, Comerica; Mike Parker.
It was moved by Ms. Rach and supported by Mr. Ambrose to approve the Defined Contribution
Money Purchase Plan Administrative Board Committee Meeting Minutes for July 5, 2007. .
Adopted by the following vote: 4-0
It was moved by Mr. Ambrose and supported by Ms. Rach to approve the Committee of the.
Whole meeting minutes of May 3, 2007 as amended.
Adopted by the following vote: 4-0
The Committee inquired about the section left intentionally blank in the Voluntary Employees
Beneficiary Association (VEBA) Amendment. Jack Roberts will report on the section regarding
members who have taken their accumulated contributions. The Board discussed whether
receiving an accumulated contribution refund would disqualify a defined contribution vested
member from receiving health care.
Mike Parker, Teamster 580 representative expressed concern to the Board that the VEBA
document reflect the Collective Bargaining Agreement and the Ordinance that outlines who is
covered. Mr. Parker inquired about survivor health benefits. The question was discussed if a
retiree chooses a single life ammuity, will health care continue for the spouse. Mike Parker stated
that he had discussed with Attorney Jack Roberts the collective bargaining agreement in relation
to the survivor health benefits. Attorney Roberts will need to research this topic and provide
further information to the committee.
The Committee reviewed Attorney Jack Roberts legal opinion regarding Mr. Steve Schuster's
membership on the governing board. Mr. Schuster is no longer an employee of the City of
Lansing and therefore detennined to not be eligible for the board. Attorney Roberts opinion will
be attached to the official minutes. Mr. Roberts continues his research on membership of the
governing board:
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF DECEMBER 6, 2007
The Board met in regular session and was called to order at 9:05 a.m.
Present: Members: Bill Barkyoumb, Angela Bennett, Antonia Kraus, Faith Rach, Terri Singleton
(9:18a.m.)- 5.
Absent: Jerry Ambrose, Tom Korkoske
Others: Karen E. Williams, Finance Department; Cam Honer, Comerica; Jack Roberts, Law
Department.
It was moved by Ms. Rach and supported by Mr. Barkyoumb to approve the Defined
Contribution Money Purchase Plan Administrative Board Committee Meeting Minutes for
October 4, 2007 as revised.
Adopted by the following vote: 4-0
Cam Honer distributed reports and gave an update of Comerica Services. Ms. Honer stated that
every several weeks, employer contributions are made into the Money Purchase Plan. The
employer contribution from the City is done sporadically and there are no specific guidelines for
when the contributions must be made. Ms. Honer explained the different regulations regarding
employer vs. employee contributions.
Cain Honer reviewed and explained the Forfeiture Account. The Account is comprised of city
fluids contribution to the Money Purchase Plan for members who did not vest. Fees for the
administration of the plan have been paid through the account. Ms. Honer updated the Board
regarding plan participants with balances below $1,000.
Cain Honer reported to the Board the updated balance for the Voluntary Employees Beneficiary
Association (VEBA). The VEBA account is comprised of 584 series of funds. The fund
receives 4% of payroll for VEBA participants who have a 1.6% Factor. The contribution is a
contractual obligation.
It was moved by Ms. Kraus and supported by Ms. Bennett to excuse Board members Ambrose
and Korkoske.
Approved by the following vote: 5 —0.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN -MEETING OF DECEMBER 6, 2007
Page 3
Attorney Roberts reported that he worked with Attorney Sherry Stein to update the VEBA plan.
Mr. Roberts informed that Board that he would need outside assistance to complete the
amendments to the VEBA. Attorney Roberts requested approval for the outstanding legal
services invoice of$2,523.34.
It was moved by Ms. Rach and supported by Ms. Kraus to approve payment to Attorney Sherry
Stein for her legal services for the VEBA Plan.
Adopted by the following vote: 5- 0.
Foster, Swift Law Offices is also reviewing whether receiving an accumulated contribution
refund would disqualify a defined contribution vested member from receiving health care.
Attorney Roberts reviewed the Board discussion regarding involuntary terminations members
from the Plan who had balances between $1,000 and $5,000. Attorney Roberts inquired if the
Administrative Board had adopted the Safe Harbor IRA Agreement with Comerica. The Board
had not entered into the agreement. Attorney Roberts suggested that the Board consider a
motion to request and recommend that the City of Lansing adopt the Safe Harbor IRA
Agreement.
It was moved by Ms. Kraus and Ms. Singleton to request and recommend that the City of
Lansing adopt the Safe Harbor IRA Agreement. Ms. Rach offered a friendly amendment that the
agreement approval will be subject to the City Attorney's review.
Adopted by the following vote: 5-0.
It was moved by Ms. Kraus and supported by Ms. Rach to adjourn the meeting.
Adopted by the following vote: 5 - 0
The meeting adjourned at 10:36 a.m.
(2/25/2008) Nancy Squier- December07 Minutes.doc Page 1
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MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF DECEMBER 6,2007
The Board met in regular session and was called to order at 9:05 a.m.
Present: Members: Bill Barkyoumb, Angela Bennett, Antonia Kraus, Faith Rach,Tern Singleton
(9:18a.m.)-5.
Absent: Jerry Ambrose, Tom Korkoske
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Others: Karen E. Williams, Finance Department; Cam Honer, Comerica; Jack Roberts, Law
Department.
It was moved by Ms. Rach and supported by Mr. Barkyoumb to approve the Defined
Contribution Money Purchase Plan Administrative Board Committee Meeting Minutes for
October 4, 2007 as revised.
Adopted by the following vote: 4-0
Cam Honer distributed reports and gave an update of Comerica Services. Ms. Honer stated that
every several weeks, employer contributions are made into the Money Purchase Plan. The
employer contribution from the City is done sporadically and there are no specific guidelines for
when the contributions must be made. Ms. Honer explained the different regulations regarding
employer vs. employer contributions.
Cam Honer reviewed and explained the Forfeiture Account. The Account is comprised of city
funds contribution to the Money Purchase Plan for members who did not vest. Fees for the
administration of the plan have been paid through the account. Ms. Honer updated the Board
regarding plan participants with balances below$1,000.
Cam Honer reported to the Board the updated balance for the Voluntary Employees Beneficiary
Association (VEBA). The VEBA account is comprised of 584 series of funds. The fund
receives 4% of payroll for VEBA participants who have a 1.6% Factor. The contribution is a
contractual obligation.
It was moved by Ms. Kraus and supported by Ms. Bennett to excuse Board members Ambrose
and Korkoske.
Approved by the following vote: 5—0.
(2/25/2008) Nancy Squier- December07 Minutes.doc _ Page 2
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN-MEETING OF DECEMBER 6, 2007
Page 2
Attorney Jack Roberts reviewed the Mayor's Memo to re-establish the Board. Mr. Roberts
reviewed the current rules in place for the Defined Contribution Administrative Board. Mr.
Roberts advised the Board regarding observations from his review.
1. The Defined Contribution Administrative Board is also the VEBA Board as defined
in the Ordinance. The Board's elected members are not active members of the Money
Purchase Plan. However,the elected members are active in the VEBA plan.
2. At least two of the members are to be from Teamsters 580 CTP, and Teamster 580
Supervisory. Attorney Roberts believed that the membership for the Defined
Contribution Administrative Board is defined the collective bargaining agreement.
Attorney Roberts suggested changing the composition of the Administrative Board for the
elected members. Attorney Roberts reported to the Board that the only two contracts that
reference the Defined Contribution Administrative Board elected membership are Teamster 580
CTP and Teamster 580 Supervisory.
Ms. Kraus provided a history and the overview of the Defined Contribution Administrative
Board and its rules. Ms. Kraus created the original Board rules. Ms. Kraus clarified that the
Administrative subcommittee is responsible for drafting rules changes to bring before the Board.
Ms. Kraus suggested that an Administrative subcommittee be established and that procedural
changes should be referred to that subcommittee.
Mr. Bill Barkyoumb appointed the following members to the Administrative Subcommittee: Ms.
Rach, Ms. Kraus and Mr. Korkoske. The subcommittee was charged to review the rules of
procedure and organization of the Administrative Board.
Attorney Roberts requested that he added to the Administrative Subcommittee and an ex-offrcio
member. Mr. Roberts also suggested that Ms. Singleton be invited to the meeting as a
consultant. Attorney Roberts also suggested that the subcommittee meeting be posted even if
Ms. Singleton is only serving as an advisor to the Administrative Subcommittee.
Mr. Bill Barkyoumb requested that Retirement Analyst contact Mr. Korkoske and inquire if he is
able to serve on the Administrative subcommittee.
Karen Williams distributed the 2008 Meeting Schedule for Board approval.
It was moved by Ms. Rach and supported by Ms. Bennett to approval the 2008 Meeting Public
Notice Schedule as corrected.
Adopted by the following vote: 5-0.
(2/25/2008) Nancy Squier- December07 Minutes.doc Page 3
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN-MEETING OF DECEMBER 6,2007
Page 3
Attorney Roberts reported that he worked with Attorney Sherry Stein to update the VEBA plan.
Mr. Roberts informed that Board that he would need outside assistance to complete the
amendments to the VEBA. Attomey Roberts requested approval for the outstanding legal
services invoice of$2,523.34.
It was moved by Ms. Rach and supported by Ms. Kraus to approve payment to Attorney Sherry
Stein for her legal services for the VEBA Plan.
Adopted by the following vote: 5-0.
Foster, Swift Law Offices is also reviewing whether receiving an accumulated contribution
refund would disqualify a defined contribution vested member from receiving health care.
Attorney Roberts reviewed the Board discussion regarding involuntary terminations members
from the Plan who had balances between $1,000 and $5,000. Attorney Roberts inquired if the
Administrative Board had adopted the Safe Harbor IRA Agreement with Comerica. The Board
had not entered into the agreement. Attorney Roberts suggested that the Board consider a motion
to request and recommend that the City of Lansing adopt the Safe Harbor IRA Agreement.
It was moved by Ms. Kraus and Ms. Singleton to request and recommend that the City of
Lansing adopt the Safe Harbor IRA Agreement. Ms. Rach offered a friendly amendment that the
agreement approval will be subject to the City Attomey's review.
Adopted by the following vote: 5-0.
It was moved by Ms.Kraus and supported by Ms. Rach to adjourn the meeting.
Adopted by the following vote: 5 -0
The meeting adjourned at 10:36 a.m.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN -
VEBA PLAN
MEETING OF OCTOBER 4, 2007 (REVISED)
The Board met in regular session and was called to order at 9:20 a.m.
Present: Members: Jerry Ambrose, Bill Barkyoumb, Faith Rach, Teri Singleton- 4.
Absent:
Others: Karen E. Williams, Finance Department; Cam Honer, Comerica; Mike Parker.
It was moved by Ms. Rach and supported by Mr. Ambrose to approve the Defined Contribution
Money Purchase Plan Administrative Board Committee Meeting Minutes for July 5, 2007.
Adopted by the following vote: 4-0
It was moved by Mr. Ambrose and supported by Ms. Rach to approve the Committee of the
Whole meeting minutes of May 3, 2007 as amended.
Adopted by the following vote: 4-0
The Committee inquired about the section left intentionally blank in the Voluntary Employees
Beneficiary Association (VEBA) Amendment. Jack Roberts will report on the section regarding
members who have taken their accumulated contributions. The Board discussed whether
receiving an accumulated contribution refund would disqualify a defined contribution vested
member from receiving health care.
Mike Parker, Teamster 580 representative expressed concern to the Board that the VEBA
document reflect the Collective Bargaining Agreement and the Ordinance that outlines who is
covered. Mr. Parker inquired about survivor health benefits. The question was discussed if a
retiree chooses a single life annuity, will health care continue for the spouse. Mike Parker stated
that he had discussed with Attorney Jack Roberts the collective bargaining agreement in relation
to the survivor health benefits. Attorney Roberts will need to research this topic and provide
further infonnation to the committee.
The Committee reviewed Attorney Jack Roberts legal opinion regarding Mr. Steve Schuster's
membership on the governing board. Mr. Schuster is no longer an employee of the City of
Lansing and therefore determined to not be eligible for the board. Attorney Roberts opinion will
be attached to the official minutes. Mr. Roberts continues his research on membership of the
governing board.
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF OCTOBER 4, 2007 (PAGE 2)
The Coininittee discussed the list of people provided by Comerica that still have a small balance
in the Money Purchase plan. The retirement analyst provided a sample letter for members to
review. The Committee discussed the process to authorize distributions for participants who are
less than $1,000 excluding active participants. Participants will be provided appropriate notice
and given 30 days for a response.
Mr. Ambrose inquired about the length of time between deductions from an employee's check
until the money is forwarded to the Money Purchase Plan for active participants. Ms. Cam
Honer will research the time frame when Comerica receives the deduction.
It was moved by Mr. Ambrose and supported by Ms. Rach to adjourn the meeting.
Adopted by the following vote: 4 - 0
The meeting adjourned at 9:49 a.m.
(2/25/2008) Nancy Squier-october07 Minutes.doc — Page 1
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF OCTOBER 4,2007 (REVISED)
The Board met in regular session and was called to order at 9:20 a.m.
Present: Members: Jerry Ambrose,Bill Barkyoumb,Faith Rach, Terri Singleton-4.
Absent:
Others: Karen E. Williams,Finance Department; Cam Honer, Comerica;Mike Parker.
It was moved by Ms. Rach and supported by Mr. Ambrose to approve the Defined Contribution
Money Purchase Plan Administrative Board Committee Meeting Minutes for July 5, 2007.
Adopted by the following vote: 4-0
It was moved by Mr. Ambrose and supported by Ms. Rach to approve the Committee of the
Whole meeting minutes of May 3,2007 as amended.
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Adopted by the following vote: 4-0
The Committee inquired about the section left intentionally blank in the Voluntary Employees
Beneficiary Association (VEBA)Amendment. Jack Roberts will report on the section regarding
members who have taken their accumulated contributions. The Board discussed whether
receiving an accumulated contribution refund would disqualify a defined contribution vested
member from receiving health care.
Mike Parker, Teamster 580 representative expressed concern to the Board that the VEBA
document reflect the Collective Bargaining Agreement and the Ordinance that outlines who is
covered. Mr. Parker inquired about survivor health benefits. The question was discussed if a
retiree chooses a single life annuity, will health care continue for the spouse. Mike Parker stated
that he had discussed with Attorney Jack Roberts the collective bargaining agreement in relation
to the survivor health benefits. Attorney Roberts will need to research this topic and provide
further information to the committee.
The Committee reviewed Attorney Jack Roberts legal opinion regarding Mr. Steve Schuster's
membership on the governing board. Mr. Schuster is no longer an employee of the City of
Lansing and therefore determined to not be eligible for the board. Attorney Roberts opinion will
be attached to the official minutes. Mr. Roberts continues his research on membership of the
governing board.
Nancy Squier-october07 Minutes.doc
MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN
VEBA PLAN
MEETING OF OCTOBER 4, 2007 (PAGE 2)
The Committee discussed the list of people provided by Comerica that still have a small balance
in the Money Purchase plan. The retirement analyst provided a sample letter for members to
review. The Committee discussed the process to authorize distributions for participants who are
less than $1,000 excluding active participants. Participants will be provided appropriate notice
and given 30 days for a response.
Mr. Ambrose inquired about the length of time between deductions from an employee's check
until the money is forwarded to the Money Purchase Plan for active participants. Ms. Cam
Honer will research the time frame when Comerica receives the deduction.
It was moved by Mr. Ambrose and supported by Ms. Rach to adjourn the meeting.
Adopted by the following vote: 4-0
The meeting adjourned at 9:49 a.m.
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