HomeMy WebLinkAboutIR 9830 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9830
To the Mayor and Members of the City Council December 15, 2015
Page 1 of 2
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�i7 Y
rrn SUBJECT: PENSION REVIEW COMMITTEE UPDATE
The purpose of this Informal Report is to provide an update on the Pension Review Committee.
In August 2015, the City Council requested that the City Manager form a committee "to determine
what additional steps may be necessary to manage the risk of the (retirement) plan and improve
the overall financial condition."
Since that time, the City Manager has assembled a Committee of the following members:
• David Cooke, City Manager
• Joelle Mevi, Retirement Fund Executive Director
• Rick VanHouten, Fort Worth POA
• Jim Tate, Fire Fighters #440
• Glenn Balog, General Employee Representative
• Laura Alexander, Citizen/Business Representative (Laura works with First Southwest, the
City's Financial Advisor)
• Mike Ward, Citizen/Business Representative (Mike serves on the City's Aviation Advisory
Committee and is Chair of the City's Building Standards Commission. Mike is also an
actuary.)
The committee has held their first meeting and has begun the research and data collection
necessary for the review.
Committee Charge and Review Process
The Committee will be charged with:
• Defining and assessing the long-term sustainability of the Fort Worth Employees'
Retirement Fund and evaluating options to improve the current position of the retirement
fund, without directly or indirectly, requiring additional contributions from
taxpayers/ratepayers.
In order to meet the charge, the Committee will:
• Discuss and agree in how long-term sustainability will be defined (as it relates to
amortization period; discount rates; funded ratios, etc.)
• Evaluate the competitiveness of the City's pension plan in the context of total
compensation — with the goal of maintaining competitive recruitment and retention. Total
compensation will include salary, pension, healthcare and other benefits such as paid
leave.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9830
To the Mayor and Members of the City Council December 15, 2015
Page 2 of 2
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rrn SUBJECT: PENSION REVIEW COMMITTEE UPDATE
• Evaluate pension marketplaces to include other Texas stand-alone plans and the
Texas Municipal Retirement System (TMRS) to include, at a minimum, the following
data:
- Financial condition of other plans
- Vesting
- Benefit formula (multiplier, final salary calculation, overtime, etc.)
- Employer/Employee Contributions
If you have any questions, please let me know.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS