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<br />Mr. Glickert asked what the board discussed in reference to where the City would want <br />to be at with the rate of return for our employees. He asked if the Council would be <br />content with the figures or would need to adjust them. <br /> <br />Mr. Carr said the board consisted of a significant number of people in the investment <br />world that are familiar with investment performance. He said the board concluded that <br />from a long term investment stand-point, there was no need to change it. <br /> <br />Mr. Crow stated that the Pension Board was a dedicated group that met often with <br />vigorous discussions on what had occurred in the past. He also stated that on the <br />agenda it said that this discussion could not be rescheduled but was assuming it could. <br /> <br />Mr. Walker said it could be postponed. <br /> <br />Mr. Crow said the request to pay came without any advice from the professional <br />actuary and felt this could be included in next year’s budget. <br /> <br />Mr. Edward McCarthy, 7101 Princeton Avenue <br />Mr. McCarthy expressed concern regarding Ms. Carr’s comparison to an electric bill. <br />He stated that it is not like an electric bill but more like a mortgage that means if you <br />pay it off early, you save money over the long run. He said the City makes 6½% <br />interest with their money or the City can earn 0.9% interest when just sitting in the bank. <br />He said if the money was in a checking account, you should pay the $5 million owed to <br />this fund. <br /> <br />Mr. Kraft said the Pension Board has people on it with financial expertise and he <br />understood that actuaries would not set a certain amount to be invested as they felt that <br />should be the board’s decision. <br /> <br />Mr. Kraft asked if the concept of putting in $100,000 a month is a discipline way putting <br />it in on a regular basis. <br /> <br />Mr. Carr stated that at the end of the first paragraph in the minutes it spoke on the <br />flexibility given to Council as conditions change. He stated that they are essentially <br />dollar cost averaging by doing our actuarial calculation and putting that in on an annual <br />basis. He said that instead of putting it in all at one time, there is an argument in favor <br />of dollar cost averaging over a period of a year. <br /> <br />Mr. Kraft said he asked a friend with a financial background if he would put the money <br />into a program run by a professionally managed firm where he would getting an <br />automatic 6½% return compared to the return received in a checking account. He said <br />if the money was not for a planned purpose he would go with the better rate of return. <br /> <br />Mr. Carr stated that in item #15A on the handout stated that obligation grows as a <br />function to demographics. He said the obligation was going to happen according to the <br />people in the plan, their ages, decisions, etc. that would change the math that the <br />actuary would go through. He said the obligation would be growing at an unknown <br />number, but the actuary starts with the best estimate of what those future results could <br />be then we discount at 6½%. He noted there was a range around 5% very <br />6 <br /> <br /> <br />