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HomeMy WebLinkAbout2008 - Defined Contribution Plan Minutes MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN MEETING OF FEBRUARY 7, 2008 The Board met in regular session and was called to order at 9:04 a.m. Present: Members: Jerry Ambrose (9:22), Bill Barkyoumb, Angela Bennett, Thomas Korkoske, Antonia Kraus, Faith Rach, Terri Singleton (9:22) - 7. Absent: Others: Karen E. Williams, Finance Department; Cain Honer, Comerica; Jack Roberts, Law Department (9:10a.m.); Brian Petras, Gary Bender, World Asset Managers. Mr. Barkyoumb requested that the approval of the minutes be delayed until Attorney Jack Roberts arrived to clarify the wording of his statements in the minutes. Cam Honer distributed reports and gave an update of Comerica Services and the Money Purchase plan. Ms. Honer updated the Board regarding automatic distributions of plan participants who had balances under $1,000. Ms. Honer also discussed establishing the Safe Harbor Individual Retirement Accounts for automatic distributions of plan participants who had deposits between $1,000 and $5,000. Mr. Brian Petras and Mr. Gary J. Bender of World Asset Management presented performance results and benchmarks for the VEBA as of December 17, 2007. Mr. Petras provided an .overview of World Asset Management. Mr. Bender reviewed the portfolio asset allocation. The Committee returned to approval of the December 2007 minutes. Ms. Rach has inquiries regarding Attorney Roberts statements about the composition of the Defined Contribution Administrative Board. It was moved by Mr. Korkoske and supported by Ms. Kraus to approve the Defined Contribution- Money Purchase Plan Administrative Board Committee Meeting Minutes for December 6, 2007 as revised. Adopted by the following vote: 7-0 The Administrative subcommittee report was moved to pending until next meeting. Mr. Barkyoumb inquired to Attorney Roberts regarding health benefits eligibility for surviving spouses of VEBA retirees. Mr. Barkyoumb questioned whether an employee who retires and receives a single am-wity and is married, would the surviving spouse continue to receive health care benefits? Attorney Roberts stated that he will review the health care VEBA plan and provide a report. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN GOVERNING COMMITTEE MEETING OF APRIL 3, 2008 The Board met in regular session and was called to order at 9:01 a.m. Present: Members: Bill Barkyoumb, Thomas Korkoske, Antonia Kraus, Faith Rach - 4. Absent: Jerry Ambrose, Angela Bennett, Terri Singleton Others: Karen E. Williams, Mark Colby, Finance Department; Cam Honer, Comerica; Jack Roberts, Law Department. It was moved by Ms. Kraus and supported by Ms. Rach to approve the Administrative Board Committee Meeting Minutes for February 7, 2008 with amendments. Approved by the following vote: 4—0. Cam Honer distributed reports and gave an update of Comerica Services and the VEBA plan. Ms. Honer provided the quarterly review for the Money Purchase Plan and explained the large balance decrease. The large decrease was due to investment loss, distributions to plan participants, and plan expenses. Attorney Jack Roberts reviewed the changes to the Governing Committee Organization and Rules of Procedure reported by the Administrative subcommittee. Attorney Roberts provided an overview of the governing committee membership. All employees of the City who are Eligible Members in the VEBA may vote to select Governing Committee members at each election, without regard to bargaining unit affiliation. Ms. Kraus suggested an amendment to the organization section of the Governing Committee Organization. Attorney Roberts advised that upon adoption of the Governing Committee Organization and.. Rules of Procedure, an election could be held. The Committee discussed how the staggered terms would be selected. Ms. Rach had concerns that the changes reflected in the Governing Committee Organization and Rules of Procedure should be reflected in the VEBA._trust - agreement. The Conunittee suggested to Ms. Rach that the union can be notified�to update language in their contract. Attorney Roberts advised the first step should be to change the Rules of Procedure. It was moved by Ms. Kraus and supported by Ms. Rach to approve the Governing Committee Organization and Rules of Procedure as amended and presented. Approved by the following vote: 4—0. Attorney Roberts infonned the committee that he will provide an updated copy for members and to the Retirement Office. Attorney Roberts also stated that he will send a copy to Sherry Stein. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN GOVERNING COMMITTEE MEETING OF JUNE 5, 2008 (REVISED) The Board met in regular session and was called to order at 9:01 a.m. Present: Members: Jerry Ambrose, Bill Barkyoumb, Angela Bemlett, Thomas Korkoske, Antonia Kraus (9:34) - 5. Absent: Faith Rach, Terri Singleton Others: Karen E. Williams, Finance Department; Cam Honer, Comerica; Jack Roberts, Law Department. It was moved by Mr. Korkoske and supported by Ms. Bennett to approve the Administrative Board Committee Meeting Minutes for April 3, 2008 as corrected. Approved by the following vote: 4—0. Cam Honer reviewed the 2008 Standard and Poor's Plan Change Notification. Ms. Honer explained that the notification of modifications of the investment options in the plan. It was moved by Mr. Ambrose and supported by Trustee Korkoske to accept the 2008 Standard and Poor's recommended plan modifications. Adopted by the following vote: 4— 0. Ms. Antonia Kraus arrived to the meeting. Cam Honer distributed reports and gave an update of Comerica Services and the VEBA plan. Ms. Honer provided the quarterly review for the Money Purchase Plan. Ms. Honer explained. that Comerica discovered that the Plan had not been charged an administrative fee for the past few years. She distributed a detailed breakdown of the yearly fee that has been paid from the Forfeiture Account. Ms. Honer explained the investment loss was due to poor quarter. Cam Honer reported to the Committee that contributions are up-to-date and are coming in to Comerica on a regular basis. Ms. Bennett reported that the VEBA contributions for this year had not been made. The VEBA contributions are made based upon contract considerations. It was moved by Ms. Kraus and supported by Ms. Bennett to excuse members, Ms. Faith Rach and Ms. Terri Singleton. Adopted by the following vote: 5 —0. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN GOVERNING COMMITTEE MEETING OF OCTOBER 2, 2008 The Board met in regular session and was called to order at 9:06 a.m. Present: Members: Jerry Ambrose, Bill Barkyoumb, Angela Bennett, Thomas Korkoske-4. Absent: Antonia Kraus, Faith Rach, Terri Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department It was moved by Mr. Korkoske and supported by Ms. Bennett to approve the Administrative Board Committee Meeting Minutes for August 7, 2008 as revised. Approved by the following vote: 4— 0. Mr. Barkyoumb reported that Cam Honer of Comerica would not be at the meeting. Her reports would not be available until October 3. The reports will be forwarded to members when they become available. There were no reports or public comments. It was moved by Mr. Ambrose and supported by Mr. Korkoske to excuse Ms. Kraus, Ms, Rach and Ms. Singleton from the meeting. Adopted by the following vote: 4— 0. Attorney Jack Roberts requested that the minutes reflect two issues regarding the election of members. The first, issue involved the continuation of Ms. Angela Bennett as.an elected _ member. Ms. Beimett inquired about her status on the committee because she did"not run for - election. Mr. Roberts reviewed the Rules of Procedures for the Election of members. Two people filed valid nominating petitions for three positions. The two nominees were elected without the need for holding an official election. Attorney Roberts opined that because Ms. Bennett was appointed by the Mayor, she continues her membership until the next election. The Mayor would not need to re-appoint her to the position that she already holds. The second issue. regards the staggered tern. Mr. Roberts advised that the most appropriate process would be for Ms. Bennett to have the one year term. Mr. Roberts reviewed the Election Rules regarding how staggered terns are determined. Attorney Roberts proposed drawing lots to detennine the terns of the elected Board members. MONEY PURCHASE PLAN/DEFINED CONTRIBUTION PLAN VEBA PLAN GOVERNING COMMITTEE MEETING OF DECEMBER 4, 2008 The Board met in regular session and was called to order at 9:01 a.m. Present: Members Jerry Ambrose (9:18), Bill Barkyoumb, Angela Bennett (9:20), Thomas Korkoske, Antonia Kraus, Faith Rach, Terri Singleton (9:18)- 7. Absent: Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Ms Cam Honer, Comerica. It was moved by Mr. Korkoske and supported by Ms. Rach to approve the Administrative Board Committee Meeting Minutes for October 2, 2008. Approved by the following vote: 4— 0. Ms. Cam Honer distributed and reviewed the City of Lansing Money Purchase Plan year-to-date report. Ms. Honer also provided the VEBA Plan monthly statement. Ms. Rach inquired if a deposit had been made into the account for the year. Karen Williams reported that the contribution of$1,575,930 had been made in June 2008 for fiscal year 2008. There were no reports or public comments. It was moved by Mr. Korkoske and supported by Ms. Kraus to excuse Mr. Ambrose, Ms. Bennett and Ms. Singleton from the meeting. Adopted by the following vote: 4— 0. Karen Williams distributed the proposed meeting dates for the Defined Contribution Money. Purchase Pension Plan. It was moved by Ms. Rach and supported by Trustee Korkoske to approve the 2009 Schedule of Meeting Dates for the Defined Contribution Money Purchase Pension Plan. Adopted by the following vote: 4—0. Mr. Ambrose, Ms. Bemlett and Ms. Singleton arrived to the meeting. Attorney Jack Roberts reported to the Committee that he was contacted by Attorney Sherry Stein regarding the Mandatory IRS 415 Amendment. Attorney Roberts provided an overview of the amendment regarding pension limitations for retirees. The maximum dollar amount for retirees of defined benefit plans are $185,000 for the calendar year 2008. The IRS requires the amendment to be adopted by the calendar year.