HomeMy WebLinkAbout2017/11/14-Minutes-Joint Meeting CC w/ Retirement Fund bd CITY OF FORT WORTH, TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
BOARD MEETING
NOVEMBER 14, 2017
Present:
Mayor Pro tem Dennis Shingleton, District 7
Council Member Carlos Flores, District 2
Council Member Brian Byrd, District 3
Council Member Cary Moon, District 4
Council Member Gyna Bivens, District 5
Council Member Jungus Jordan, District 6
Council Member Kelly Allen Gray, District 8
Council Member Ann Zadeh, District 9
Absent:
Mayor Betsy Price
Fort Worth Employees' Retirement Fund Board Members Present:
Todd Cox, Chair, Place 2
Rick Van Houten, Vice Chair, Place 1
Loraine Coleman, Place 3
Steve Streiffert, Place 4
Tom Lewis, Place 5
Kevin Foster, Place 6
Marsha Anderson, Place 7
Jesus Payan, Place 8
Jarod Cox, Place 9
Jason Brown, Place 10
Bill Crawford, Jr., Place 11
Scott Wade, Place 12
Aaron Bovos, Place 13
Staff Present:
David Cooke, City Manager
Sarah Fullenwider, City Attorney
Ronald P. Gonzales, Assistant City Secretary
Joelle Mevi, Fund Executive Director
I. Call to Order—Mayor Pro tem Shingleton and Chairman Todd Cox
With a quorum present, Mayor Pro tem Shingleton and Chair Todd Cox called the Joint Meeting
of the Fort Worth City Council and the Fort Worth Employees' Retirement Fund (ERF) Board to
order at 1:00 p.m., on Tuesday, November 14, 2017, in the City Council Conference Room 290,
200 Texas Street, Fort Worth, Texas.
CITY OF FORT WORTH,TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
NOVEMBER 14,2017
Page 2 of 4
II. Welcome and Introductions—Mayor Pro tem Shingleton and Chairman Todd Cox
Mayor Pro tem Shingleton and Chair Cox welcomed the members and audience to the meeting.
Members of both boards introduced themselves.
III. Update on Investment Performance—Joelle Mevi,Fund Executive Director/CIO
Ms. Joelle Mevi, Fund Executive Director/CIO, provided a *PowerPoint presentation titled,
"Update: Investment Performance and Strategic Initiatives" and noted that information presented
was as of September 30,2017. She advised the Market Value of Assets Under Management in the
portfolio was up approximately $2.2 billion. She provided additional information on the
following:
- 2017 Investment Performance
- Thematic Asset Allocation
- Drivers of 2017 Performance
- Strategic Initiatives
- Key Distinctions in Authoritative Roles Governing FWERF
IV. Actuarial Valuation as of December 31, 2016—Ryan Falls, GRS
Mr. Ryan Falls, GRS Recruitment Consulting, provided a *PowerPoint presentation titled,
"Actuarial Valuation as of December 31,2016"and presented information relative to the following
subject matter:
- December 31, 2016, Actuarial Valuation—Key Changes and Issues
- December 31, 2016,Valuation Results
- Actuarially Determined Employer Contribution(ADEC)
- FWERF Current Funding Objective
- Change in Unfunded Actuarial Accrued Liability (UAAL) Since Prior Valuation
- Next Year Projections (1 year outlook)
- Sensitivity to Investment Returns—Projected UAAL (through 2027)
V. Progress Report for City Manager's Pension Review Committee—David Cooke, City
Manager; Paul Schrader and Sean McNeely, PFM
City Manager David Cooke stated that it had been about two years (September 2015) since the
Pension Review Committee was created and advised the Council and FWERF Board of the
committee's charge. He clarified that when reference is made about the "City's contribution", it
should be understood that also means the contribution being made by the taxpayer. He added that
the charge in place was to make the City look at another part of the equation rather than just
counting on the taxpayer to create a solution.
CITY OF FORT WORTH,TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
NOVEMBER 14,2017
Page 3 of 4
Mr. Cooke introduced Sean McNeeley and Mr. Paul Schrader, PFM Group Consulting, LLC,who
provided a *PowerPoint presentation that detailed information regarding the pension fund below:
- Extent of Problem/Most Significant Risks
- Fort Worth Key Funding Metrics
- Sources of Increased Unfunded Liabilities
- Adjusted Cost of Past Benefit Enhancements not Matched with Funding
- Benefit Reforms Ended Underfunding of Current Benefits Earned, Freed Funding for the
Accumulating Unfunded Liability
- Current New Service Benefit Levels Estimated to be Sustainable Even with More
Conservative Assumptions
- Fund Split Based on 12/31/16 GRS Actuarial Valuation
- Past Contributors to High Plan Costs
- COLA
- Employee/Employer Contribution Increases
- Funding Unfunded Liabilities
- Closed Amortization Period
- Projected Contributions as % of Payroll
City Manager Cooke displayed a slide that reflected the charge of the Pension Review Committee
as "Define/assess long-term sustainability of the FWERF and evaluate options to improve the
current position without additional funds from taxpayers". He advised of the next steps in the
process as follows:
• November 21,2017—City Manager's Task Force to review a strawman proposal of benefit
and contribution changes
• December 12, 2017 — City Council consider Ordinance Amendment to enact the change
for service purchase for rehired employees applying the assumed rate of return effective
1/1/2018
• December 19, 2017—City Manager's Task Force meeting
• January 18, 2018—City Manager's Task Force meeting
• January/February — City Council receive briefing on proposed plan changes; staff to
conduct informational meetings for members and retirees
• February 2018
o City Council consider 90-day notice to the Fund regarding additional benefit
changes
o Submit revised Financial Soundness Restoration Plan to the State Pension Review
Board
o Schedule/initiate vote of employees regarding contribution increases
• April/May—City Council adopt benefit and contribution changes in Retirement Ordinance
VI. Next Meeting—To be determined
The next meeting date will be as determined.
CITY OF FORT WORTH,TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
NOVEMBER 14,2017
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VII. Request for Future Agenda Items
There were no requests for future agenda items.
VII. Adiourn
There being no further business, Mayor Pro tem Shingleton and Chair Cox adjourned the joint
meeting at 2:49 p.m.
*All PowerPoints presented at this meeting are available in the City Secretary's Office.
These minutes were approved by the Fort Worth City Council on the 12th day of December, 2017.
Approved:
IZO-C'7
onald P. Gonzales Betsy rice
Assistant City Secretary Ma r