HomeMy WebLinkAboutMINUTES Firemen's Pension Board 2006-03-14RECORD OF PROCEEDINGS
Town of Estes Park, Larimer County, Colorado, March 14, 2006
Minutes of a Regular meeting of the FIREMEN'S PENSION BOARD of the
Town of Estes Park, Larimer County, Colorado. Meeting held in the
Municipal Building in said Town of Estes Park on the 14th day of March
2006.
Committee:
Attending:
Absent:
Mayor Baudek, Fire Chief Dorman, Finance Officer
McFarland, EPVFD Members Birchfield and Landkamer,
Town Clerk Williamson
Mayor Baudek, Fire Chief Dorman, Finance Officer
McFarland, EPVFD Birchfield, Town Clerk Williamson, Pat
Kahle (Milliman)
EPVFD Landkamer
Mayor Baudek called the meeting to order at 11:00 a.m.
SUPPLEMENTAL ACTUARIAL VALUATION STUDY FOR 2005 — DISCUSSION.
Pat Kahle of Milliman reviewed the benefit increase study and inclusion of the dive team
to the plan. The ratio of assets to accrued liabilities, funded ratio, decreases as the
benefit level is increased from $350 (61.6%) to $450 (47.9%). The addition of the dive
team does not have a significant affect on the funded ratio at a benefit level of $350
(60.6%). A funded ratio closer to 100% is preferable. Currently the fund is paying for
benefits earned through January 1, 2005 plus benefits previously earned (Unfunded
Actuarial Liability). The Unfunded Actuarial Liability (UAL) increases with the increase
in benefits. Decreasing the amortization period and increasing the earnings assumption
will decrease the UAL; therefore increasing the ratio of assets to accrued liabilities.
INVESTMENT STRATEGY OPTIONS.
Finance Dir. McFarland stated $500,000 is currently invested in bonds due in 2006
($250,000) and 2008 (250,000), and an additional $500,000 is held as cash with a fund
total of $1 million. The statutes limit the type and amount of investments to not more
than 40% in equities assuming institutional management. McFarland stated diversifying
the fund would increase returns; therefore, increase the funded ratio. The fund is
currently not meeting inflation. Chief Dorman supports diversifying the investments and
increasing the Town's contributions to the fund with the future goal of increasing
firefighter pensions as soon as possible. Finance Director McFarland stated an
investment company should be hired to manage the investment strategy. Following
discussion, the Board recommends a RFP be completed to select a management
company. McFarland will bring the top 3 submittals to the Board on May 16, 2006.
RETIREMENT BENEFITS:
The Board reviewed the pension applications submitted by Charles Thomas dated
October 20, 2005, Karl Ertl dated November 14, 2005, and Mark Chrastil. It was
moved and seconded (Dorman/Birchfield) the Applications be approved for
Thomas (deferred until 4/1/08) and Ertl (deferred until 2/1/10). Chrastil's application
will be considered by the Board at the May 16, 2006 meeting to allow for confirmation
on years of service and clarification from Attorney White regarding eligibility, and it
passed unanimously.
There being no further business, Mayor Baudek adjourned the meeting at 11:50 a.m.
J
kie Williamson, Town Clerk