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Retirement Board report By Javier Romero, Retirement Board Vice President I have nothing but good news to report: A new retirement plan manager, the probability of improved benefits to our members and a positive actuarial valuation report. We have concluded our interviews for retirement plan manager and have offered the position to Duamel Vellon. Vellon is currently managing a very successful plan in Phoenix, Arizona. We hope to have him on board by early February. We have just completed an actuarial valuation that included the cost of possible benefit improvements. Many employees who retired during the SRP benefited from a retirement fund surplus. It is important that the active employees and the retirees prior to the SRP also receive a benefit improvement from the surplus. We are looking at the feasibility of a 3.15% increase to retirees who started receiving benefits on or before August 1, 1997 and the cost associated with increasing the retirement formula from 2.1% to 2.5% for active employees. The benefit improvement for active employees is a meet and confer item between labor and management. The Retirement Board is not involved in the meet and confer items, but has a responsibility to investigate the cost of benefit enhancements. Our actuarial value of assets earned a return of approximately 11% for the June 30, 1999 to June 30, 2000 plan year. This resulted in an actuarial gain of $165 million when measured against the assumed rate of return of 8%. Active membership has increased by 4.4% during the 1999-2000 plan year. We have started the groundwork to make improvements throughout the plan. We had a good year and look forward to an even better year in 2001. |
| Business Manager's report |
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