Loading...
HomeMy WebLinkAbout2009 Defined Cpntribution Plan Minutes CITY OF LANSING ,. :f MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN MEETING OF DECEMBER 3, 2009 The Administrative Board met in regular session and was called to order at 9:06 a.m. Present: Members: Jerry Ambrose (9:09), Bill Barkyoumb, Thomas Korkoske, Antonia Kraus, Faith Rach- 5. Absent: Angela Bennett, Terri Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Attorney Sherry Stein.. Mr. Barkyoumb informed the members that he would take the agenda out of order to take up the Defined Contribution plan amendments and restatement. Attorney Roberts provided a preview of the Amendment to the PPA and Heart Acts. Attorney Sherry Stein described current pension law and regulations. Attorney Stein explained the Pension Protection Act and how it affects the City of Lansing Defined Contribution Plan. The Plan is on a six-year cycle and the plan must comply with current federal law since the last restatement. Attorney Stein reviewed the default provisions of the amendments, regarding non- spousal beneficiary ability to rollover, and normal retirement age, as required by the Internal Revenue Service. It was moved by Mr. Ambrose and supported by Mr. Korkoske to approve Resolution 2009-A: RESOLVED that the Amendment to the City of Lansing Defined Contribution Plan for PPA, Heart Act and Other Law Changes as presented is hereby adopted effective as set forth therein, a copy of which is attached to and made a part of the minutes, and FURTHER RESOLVED that the Chairperson of the Governing Committee is hereby authorized to execute the Amendment and related documents on behalf of the City. Adopted by the following vote: 5 —0. Attorney Stein and Attorney Roberts reviewed and discussed with the Governing Committee restated Defined Contribution Plan for the IRS. Attorney Stein stated that the plan restatement deadline is April 2010. The Administrative Board discussed the Summary of the City of Lansing Defined Contribution Plan highlights. The Board discussed defining eligible employees and normal retirement age provisions. Ms. Rach inquired about the forfeitures provisions. She explained that the forfeitures were to be used for administrative expenses, not to offset employer contributions. Attorney Stein stated that the use of the forfeitures are at the discretion of the board and she will revised that section on the plan to reflect the Governing Committee's requirements. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN-MEETING OF DECEMBER 3, 2009 Page 2 It was moved by Mr. Ambrose and supported Ms. Kraus to approve Resolution 2009-13: RESOLVED: That the City of Lansing Defined Contribution Plan and Trust Agreement are hereby adopted effective January 1, 2009, unless otherwise noted therein; and FURTHER RESOLVED: That the Chairperson of the Governing Committee is authorized to execute the Plan, Trust Agreement and related documents on behalf of the Committee. Adopted by the following vote: 5 —0. Attorney Roberts requested that the Retirement Office provide notebooks for committee members to keep their restated Defined Contribution Plan and information. Attorney Roberts and Attorney Stein requested that the Governing Committee review and adopt administrative procedures and a funding policy and method for the Defined Contribution Plan at the next meeting. Mr. Ambrose left the meeting. It was moved by Mr. Korkoske and supported by Ms. Kraus to approve the Governing Committee Meeting Minutes for December 3, 2009 with amendments. Approved by the following vote: 4—0. Ms. Rach requested an explanation of how invoices are processed. Ms. Williams explained that when invoices are received for legal services, those invoices are sent to Attorney Jack Roberts for review. Upon Attorney Roberts approval of services, he sends the invoices to Ms. Williams for payment. Ms. Williams prepares the invoices, obtains the appropriate signatures and forwards them to Ms. Cam Honer at Wachovia to be paid. Ms. Williams reported that Ms Cam Honer contacted the Retirement Office and stated that she would not be able to attend the meeting due to illness. Attorney Jack Roberts reported and reviewed the most current invoice for Attorney Sherry Stein's service. Attorney Roberts explained that the Administrative Board had pre-approved the payment of Attorney's Stein work on the Defined Contribution plan It was moved by Ms. Kraus and supported by Mr. Korkoske to excuse Board members Bennett and Singleton from the meeting. Adopted by the following vote: 4—0. Attorney Roberts reported to the Board that he did not have opportunity to review the changes to the VEBA Investment Policy with Ms. Rach. Attorney Roberts advised that the members that Board discussed adding international funds as an investment. An amendment to the policy could be made at a later date. It was moved by Mr. Korkoske and supported by Ms. Kraus to amend the investment policy to include international funds to the VEBA portfolio up to 10%. Adopted by the following vote: 4—0. Mr. Barkyoumb tabled the discussion on the Proposed changes to the Investment Policy. The Board requested that the Retirement Office contact Ms. Felecia Relief to begin the paperwork to fund the International Fund recommended by World Asset Management. The paperwork will be reviewed by legal counsel so that it may be approved at the next meeting. Karen Williams distributed and requested approval for the Public Meeting notice for 2010. It was moved by Ms. Kraus and reported by Ms. Rach to approve the 2010 Defined Contribution Plan Meeting Schedule. Adopted by the following vote: 4—0. Attorney Roberts updated the Administrative Board regarding the status of the pending items on the agenda. Attorney Roberts inquired if Ms. Cam Honer presents an annual investment review for the Defined Contribution Plan. Mr. Barkyoumb stated that there is an annual review process. He stated that Ms. Honer normally would bring the Standard and Poors recommendation regarding the portfolio mix for review and approval. Attorney Jack Roberts reviewed the "Know Your Customer" form from Wells Fargo. The form is required by the Bank Security Act and the Patriot Act, both federal laws. Attorney Roberts recommended that the form be signed by Mr. Barkyoumb. It was moved by Mr. Korkoske and supported by Ms. Kraus to adjourn the meeting. Adopted by the following vote: 4 - 0 The meeting adjourned at 10:23 a.m. CITY OF LANSING MONEY PURCHASE DEFINED CONTRIBUTION PLAN'_` VEBA PLAN GOVERNING COMMITTEE MEETING OF OCTOBER.1 2009.. . •.. The Administrative Board met in regular session and was called to order at'9:08 a-.m: Present: Members: Bill Barkyoumb, Thomas Korkoske, Antonia Kraus, Terri Singleton- 4. Absent: Jerry Ambrose, Angela Bennett, Faith Rach Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Ms Cam Honer, Wachovia. It was moved by Mr. Korkoske and supported by Ms. Kraus to approve the Administrative Board Committee Meeting Minutes for August 5, 2009. Approved by the following vote: unanimously. Ms. Cam Honer reviewed City of Lansing Money Purchase Plan from l/1/2009 through 8/31/2009. Ms. Honer reported to the Committee that she received invoices for Attorney Stein's services. Those invoices have been paid. Ms. Honer reviewed the Wells Fargo process for payment of invoices. Attorney Jack Roberts requested further explanation regarding the Wells Fargo "Know your Customer" Form. Attorney Roberts requested approval that after his review of the form, he will have take it to Tom Korkoske to verify the account number and have the chair then sign the form on the behalf of the Board. It was moved by Ms. Kraus and supported by Ms. Singleton that Attorney Roberts has the committee's permission to review and approve the form for signature by the chair. Approved by the following vote: unanimously Attorney Roberts also updated the Committee on the Comerica Participation Agreement. Attorney Roberts is reviewing the document, is in the process of making amendments that will be sent to Comerica. Attorney Roberts reported that he has been in contact with Attorney Sherry Stein regarding the proposed amendments for the Defined Contribution Money Purchase Pension Plan. Attorney Roberts suggested that upon receiving the proposed amendments, he will review it with Attorney Stein and then forward it to Committee Members. Committee Members will have time to review it prior to the December meeting. Also, Attorney Roberts report current invoices received by Attorney Sherry Stein that will be forwarded to Cam Honer for payment. It was moved by Ms. Singleton and supported by Mr. Korkoske to excuse the absent members, Jerry Ambrose, Angela Bennett, Faith Rach. Adopted by the following vote: unanimously MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN—MEETING OF OCTOBER 12009 Page 2 The committee discussed the Proposed Changes to the Investment Policy. Ms. Kraus suggested that Faith Rach work with Attorney Roberts to update the draft for the investment policy. Mr. Barkyoumb tabled the item until the December meeting. Members can send changes for the Investment Policy to Ms. Rach. Karen Williams updated the Committee regarding the Well Fargo Retirement Questions Answered Email. The Committee discussed adding a web link from the Retirement Page to Wells Fargo, so participants can access the site. The Committee approved to have a web link to Wells Fargo. Ms. Cam Honer suggested that someone from the City of Lansing from the Defined Contribution Money Purchase Pension Plan be set up with Plan Sponsor access to Wells Fargo. Attorney Roberts cautioned Board members who have access to the Plan regarding the confidentially of the information as it related to the individual accounts and investments. Mr. Bill Barkyoumb suggested that Karen Williams of the Retirement Office be set up as the person with Plan Sponsor access to the Wells Fargo web page. Committee members who wish to see the Plan information can go through the Retirement Office. The Committee agreed to have Karen Williams set up with Plan Sponsor access. Attorney Jack Roberts reported that Cam Honer has recently forwarded Wells Fargo IRA sample form. Attorney Roberts will review the form and present it at the December meeting. It was moved by Ms. Kraus and supported by Ms. Singleton to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 9:43 a.m. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN GOVERNING COMMITTEE MEETING OF AUGUST 5, 2009 7 The Administrative Board met in regular session and was called to order at 9:05_a.m. Present: Members Jerry Ambrose, Bill Barkyoumb, Thomas Korkoske, Antonia Kraus -4. Absent: Angela Bennett, Faith Rach, Terri Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Sherry Stein, Foster, Swift, Collins & Smith Law Firm; Ms Cam Honer, Wachovia; Felecia Relief, Comerica; Gary Bender, Alexander V. Illyasov, World Asset Management. It was moved by Mr. Korkoske and supported by Mr. Ambrose to approve the Administrative Board Committee Meeting Minutes as amended for August 5, 2009. Approved by the following vote: unanimously. It was moved by Mr. Ambrose and supported by Mr. Korkoske to approve the Administrative Board Committee Special Meeting Minutes as amended for June 15, 2009. Approved by the following vote: unanimously. Attorney Jack Roberts presented an overview of the process and amendment needed for the IRS Restatement of the Defined Contribution Money Purchase Pension Plan. Attorney Sherry Stein provided a detailed presentation regarding the proposed amendments for the Defined Contribution Money Purchase Pension Plan. The IRS mandates a restatement of the Plan every six years. Attorney Stein recommended changing the name of the plan to the Employees Defined Contribution Plan. Attorney Stein also recommended that the Plan move from a money purchase plan to a profit sharing plan. Mr. Ambrose inquired how the changes would affect the ordinance. Attorney Stein advised that many of the changes are boilerplate and would not change the current Plan. Attorney Jack Roberts stated that the amendments, such as the name change, can be updated in the Ordinance. Attorney Stein requested direction on a clear definition for membership of the Plan. Mr. Ambrose inquired, why is the membership defined by who is excluded instead of who is eligible? Attorney Roberts will work with Attorney Stein to include current eligible members to the Plan. Attorney Stein distributed a summary of the current plan document. Attorney Stein, Attorney Roberts and the Administrative Committee reviewed and recommended amendments to the general plan features, employer contribution features, employer contribution features and miscellaneous provisions. Attorney Stein explained that the normal retirement age has been increased to age 62 and its impact on distributions. Attorney Stein recommended eliminating all forms of distributions options except lump sum. Attorney Stein reported that she will send an email to Attorney Roberts that outlines the proposed amendments to the Plan. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN—MEETING OF AUGUST 5, 2009 Page 2 Attorney Roberts recommended that Attorney Stein prepare a draft of the Plan for the Administrative Committee to review and approve. Upon approval, the restated Plan will go to City Council. It was moved Trustee Kraus and supported by Trustee Ambrose to excuse the absent Board members. Adopted by the following vote: 4—0. The Governing Committee lost its quorum and continued to meet in the Committee of the Whole. Mr. Gary Bender provided an overview of World Asset Management and distributed updates on the current funds in the VEBA portfolio. Mr. Alexander V. Illyasov provided a review of the International Equity Index Fund for the Administrative Committee's consideration to add to its portfolio. Mr. Illyasov reviewed the current returns and the expense ratio of the fund. The Governing Committee discussed the proposed amendments in the Investment Policy to include international investments. Ms. Cam Honer distributed the City of Lansing Money Purchase Plan Monthly statement. Ms. Felecia Relief distributed the City of Lansing Post Retirement Health Care Plan &Trust (VEBA) monthly statements. Attorney Roberts reported to the Governing Committee that his consultation with Attorney Stein's to review the Plan was $1,311.13. Attorney Robert requested prior approval at the Governing Committee's last meeting. Attorney Roberts reported to the Governing Committee that he received a revised Comerica participation agreement from Ms. Honer. Attorney Roberts informed members that all of amendments requested were not made. Therefore, he has returned the agreement to Comerica to be updated. The meeting adjourned at 10:22 a.m.