Minutes
COUNCIL BRIEFING
Meeting
April 10, 2006
Members Present: Mayor Pro Tem John J. Rodgers and Councilors R. Gary Allen,
Wayne Anthony, Glenn Davis, Berry Henderson, Julius Hunter, Jr., Charles E.
McDaniel, Jr., Nathan Suber, Evelyn Turner Pugh (arrived 8:10 a.m.), Evelyn
Woodson (arrived 8:17 a.m.). Also present were Mayor Robert S. Poydasheff
(arrived 8:32 a.m.), City Manager Isaiah Hugley, Deputy City Managers Lisa
Goodwin and David Arrington, City Attorney Clifton Fay, Finance Director Angela
Cole and Deputy Clerk of Council Sandra Davis.
Members Absent: No one was absent.
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This meeting was called to order at 8:05 a.m., in the Council Chambers
Conference Room, Plaza Level of the Government Center.
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Topics of Discussion:
City Manager Hugley advised that we have one topic for discussion; the
Retirement Benefit Strategy Study. He pointed out the study was conducted by
Buck Consultants. He recalled the discussion over the past year to go back to
2%. He pointed out that the decision was made to reduce the retirement pension
benefit from 2% to 1.5% in 2003. He then called upon Mr. James
(unintelligible) from Buck Consultants to provide a presentation.
Mr. James (unintelligible) came forward and provided a power point presentation
as well as a handout. He then made reference to the document entitled
?Columbus Consolidated Government Retirement Benefit Strategy Study? that was
passed around the table. (A copy of this document was submitted and is on file
for the record.) He pointed out that Buck Consultants have conducted a study
to determine the long-term cost of going back to 2% and have provided some
alternatives.
Alternative benefit considerations:
Alternative 1: Addition of a matched defined contribution plan
Alternative 2: Impact of voluntary state pension programs
Alternative 3: Addition of a Social Security bridge benefit
Alternative 4: Add employee contributions to defray the cost of increasing
benefit multiplier from 1.5% to 2.0%
Cost Impact of Increasing Benefit Multiplier to 2.0%
The very long-term cost of increasing the benefit multiplier to 2.0% for
employees hired after mid-2003 is
1.4% of payroll for the General Employees plan
1.8% of payroll for the Public Safety plan
City Manager Hugley pointed out that in FY-08 if the decision were made during
that budget cycle to go back to 2%, we would see no change in the contribution
to the pension plan; then, in 2009, we would have gone to 17.76. He said if we
had stayed the course, we would have contributed $350,000 more.
In response to a question of Councilor Anthony, City Manager Hugley advised
that we have more than $2 million in our pension fund. He then recognized the
presence of Mr. Henry Swift and Mr. Richard Swift with the City?s pension fund.
Councilor McDaniel asked if we go back to the 2%, would we have to increase the
retirees as well, at which time, Mr. James (unintelligible) responded by saying
yes.
Councilor Allen suggested that the Administration schedule more meetings with
the employees to discuss the contribution plans.
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There being no further business to discuss and with the dialogue being
concluded, this meeting adjourned at 8:52 a.m.
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Sandra T. Davis,
Deputy Clerk of Council
Attachments
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