Columbus, Georgia

MINUTES

BOARD OF TRUSTEES

EMPLOYEES' PENSION PLAN



April 14, 2004





A meeting of the Board of Trustees for the Columbus Georgia Employees= Pension

Plan was held April 14, 2004 at 2:00 P.M. in the Mayor=s Conference Room.



PRESIDING: Mayor Robert S. Poydasheff, Chairman



PRESENT: Angela D. Cole, Morton Harris, Jack Nowell, Mary Strozier-Weaver, Alan

Rothschild, Harvey Milner, Joe Smith and Capt. John Starkey



ABSENT: Carmen Cavezza, M. Daniel Gray



GUESTS: Richard Swift, Vice President (Salomon Smith Barney) and Tom Barron,

Director (Human Resources) and Craig Strain, Revenue Division Manager



Mayor Robert S. Poydasheff, Chairman called the meeting to order. Julia Rasch,

Recording Secretary, gave the attendance.





MINUTES OF THE PREVIOUS MEETING:



The motion was made that the minutes from the February 4, 2004 meeting be

accepted as submitted. The vote was unanimous.





INVESTMENT UPDATE:



Mr. Richard Swift of Salomon Smith Barney presented a summary of the monthly

valuation report of 04/13/04.



A copy of the evaluation report and the other reports are maintained by the

Board Secretary in the Finance Director=s Office and is available for review

upon request.





PRESENTATION:



Mr. Stan Samples and Mr. Rick Ford from William M. Mercer presented the annual

actuarial report. This report is presented each year to summarize the actuarial

valuations for the pension fund.



& Employee Census Data

This reflects the total number of active and inactive participants in the

General Government and Public Safety pension fund plans. The participants

graph shows the growth in the total number of participants from 1999 to 2003.

The age/service distribution graph gives the average age and number of years of

service in both the General Government fund and the in Public Safety fund.



The active payroll chart shows the total payroll for the valuation and the

average pay for each of the groups and how it=s projected to grow. This takes

into account historically, both changes in pay rates and changes in population

prospectively.



The reconciliation graph breaks out the participant data for this year compared

to last year to ensure that no one was dropped, showing the active, and the

inactive status of all employees, both General Government and Public Safety.



& Pension Plan Provisions

This section is a summary of the plan provision. For both plans many of the

provisions are the same and where there are differences those are identified

separately. There were no changes to this section this year.



& Actuarial Assumptions

This is a summarization of the assumptions that are used to complete the

valuation of the pension plan. The assumptions are arrived at using

information from the census population, salary, asset information, and using

that as a base, the actuarial assumptions are applied to project when people

will retire, how much their benefit will be, how long they will live and how

much money the fund is going to earn. For example, it is assumed that the

plan, long term will earn 7.5% interest, that employees on average will have a

pay increase of 3.25% per year until they retire and that people will retire

with various percentages at the ages between 55 and 65 forward depending on

whether they are General Government or Public Safety employees.



& Benefits Payments

These two charts are designed to show the benefits payments for the current and

future retirees, both for general government and public safety using the

current assumption.



& Assets Growth

This graph indicates the growth of the pension plan starting in 1998 and coming

forward. The value of the pension plan at the close of the 2003 fiscal year

was $176 million and is projected to reach $243 million by the end of the

fiscal year for 2007 using an assumption rate of 7.5%.



& Benefit Security

The benefit security is measured by taking the ratio of what is called current

liability to the assets. The current liability is the measure of accrued

benefits in the plan to date compared with the market value of assets. The

fund?s assets have continued to drop over the past year tightening the margin

between assets and accrued benefits.



& Funding Progress

This section shows the comparison of the assets to the present value of all

benefits including those which have not yet been earned for each person in the

plan, projecting them all the way out to retirement.







& Minimum Contribution

The minimum contribution for FY-05 for the General Government plan is

$3,845,028 and for the Public Safety plan it will be $7,506,467. For the

Disability plan, the contribution requirement will be $83,220 and the Death

benefit is $112,132. Putting the totals together, the total minimum

requirement for FY-05 will be $13,047,139 and next year it is projected to go

to $14,529,675, using an assumption rate of 7.5%.



This concluded the actuarial report and Mr. Samples and Mr. Ford were thanked

for a well-presented report and were then dismissed.





OLD BUSINESS:



a. None





NEW BUSINESS:



b. None



With no further business for discussion, the meeting was adjourned. The next

meeting is scheduled for May 5, 2004 at 2:00 p.m. in the Mayor=s Conference

Room. The guest speaker will be from Trusco Capital.









_____________________________

Julia A. Rasch

Recording Secretary