2009-01-05 Council Study Session Session

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Mr. Wagner said he was familiar with the McDonnell Douglas plan, which transitioned all employees from a defined benefit to a defined contribution plan simultaneously and rapidly when he was employed there. He also expressed concern over the steep increase in the underfunded status of the non-uniform plan, which was at zero in 2005 and now is over two million dollars. That trend projected into the future could require large annual contributions from the City. Mr. Glickert wanted any questions Council had to be presented to the Pension Commission for their input before considering hiring a consultant or changing anything. He would send out an announcement for anyone interested. At that meeting, topics would be formalized to present to the City’s Pension Board for their comments. He was to send out an email with date, time and place to all of Council. Ms. Ricci asked if any other municipality had converted from a defined benefit plan to a defined contribution plan. Ms. Watson explained that would be hard to compare as each municipality has its own demographics. Mr. Sharpe and Mr. Price were concerned with any changes and the effects it would have on the City’s present employees. Mr. Crow stated that it is important to offer a pension plan that is attractive to future hires and important in retention of present employees. Ms. Ricci was concerned with the language of the ordinance where the City paid five percent interest on any money returned that the employee put in their pension plan. It was agreed that the employees need to have their input. Ms. Watson said it is all about future liability and future assets and is best presented by an expert in the field. The Pension Board is to meet January 27, 2009. The meeting was adjourned at 6:30 p.m. Joyce Pumm, City Clerk