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From YouTube: October 19 2017: City Council Workshop on Pension Reform
Description
Join the livestream of the City Council Workshop on Pension Reform on October 19 2017
A
We
want
to
thank
you
for
that,
for
you
appreciate
you
want
to
welcome
everyone
for
this
all
work
session
on
pension
reform,
appreciate
this
appreciate
our
panel
being
here,
we're
going
to
start
it
off.
I
will
say
we
have
a
Councilwoman
prices
with
us
by
the
phones.
I
think
we
have
another
member
who
John
will
introduce
as
well
in
that
so
this
time,
I'll
turn
it
over
to
our
city
manager.
Mr.
John
Clem
Thank.
B
You,
mr.
mayor
and
through
you
to
the
members
of
our
council,
as
you
mentioned,
we're
here
today
to
talk
about
pension
reform
and
why
you
may
ask,
would
we
ruin
your
beautiful
afternoon
to
talk
about
something
as
dry
and
boring
as
pension
reform?
The
truth
is
that
municipal
governments,
nationally
a
challenged
with
several
items
that
opposing
serious
challenges
to
budgets,
bond
ratings
and
future
funding
for
priority
programs,
they're
known
as
budget
Buster's
costs
that,
if
not
contained,
can
wreak
havoc
on
a
city's
long
term
financial
stability.
B
They
could
be
capital
infrastructure,
neglect,
excessive
debt
or
long
term
pension
obligations
that
are
potentially
these
so-called
budget
Buster's.
The
truth
is
that
you,
as
councillors
probably
won't
be
asked
to
do
anything
more
significant
to
the
long-term
health
and
stability
of
our
community
than
addressing
these
issues.
For
you,
as
our
council
members,
and
especially
those
soon
to
depart,
you
can't
expect
to
be
thanked
or
even
recognized
for
your
financial
stewardship,
but
you
should
you've
made
dramatic
and
long-lasting
changes
that
will
impact
our
community
financially
for
years
now.
B
The
good
news
for
Aiken
is
that,
unlike
many
communities
that
we
read
about
across
the
country,
we
are
not
faced
facing
a
pension
crisis
at
all.
Our
system
is
well
managed
and
well
funded
far
from
the
chaos
that
is
occurring
in
the
public
and
private
sectors
elsewhere.
So
we're
not
here
to
say
that
the
sky
is
falling,
but
rather
that,
for
the
sake
of
long-term
financial
stability
for
our
city,
that
we
respectfully
suggest
that
we
consider
reforming
a
system
that
increasingly
nationally
is
seen
as
archaic
and
outdated.
B
It
doesn't
reflect
the
realities
that
we
face
today
and
tomorrow
because
of
wise
decision
making
in
akin.
In
the
past,
we
are
not
recommending
radical
changes
or
actually
any
changes
to
the
pension
program
for
our
existing
employees
and
for
our
existing
retirees.
It's
simply
not
necessary
and,
in
my
opinion,
would
breach
a
pledge
that
we
made
to
our
employees
when
we
hired
them
some
many
many
years
ago.
B
The
millions,
though,
that
you
save
by
repairing
a
road
or
a
water,
pipe
or
even
reforming
a
pension
system
today,
might
make
the
difference
between
a
safe
and
unsafe
community
decades
into
the
future
might
provide
a
youngster,
a
recreational
or
educational
opportunity
that
they
otherwise
wouldn't
have
that
could
change
their
life.
We
asked
the
panel
that
is
before
you
of
experts
this
afternoon
to
help
us
design
a
basic
defined
contribution
plan
that
has
been
tried
and
tested
by
other
private
and
public
sector
entities.
B
So
we've
designed
a
defined
contribution
plan
thanks
to
many,
if
not
most,
of
the
folks
that
are
before
you
for
all
new
employees,
but
we
also
give
the
younger
and
newer
employees
the
opportunity
with
the
language
that
we
have
submitted
to
you
and
I
to
stay
in
the
defined
benefit
plan
or
to
move
to
a
defined
contribution
plan
at
their
choosing.
So
we
have
a
relatively
short
presentation
for
you.
This
afternoon,
we've
received
over
40
questions.
We've
tried
to
circulate
those.
B
We
thank
the
authors
of
those
questions
for
their
thoughtful
inquiry,
but
we
have
a
panel
that
I
mentioned
course:
Gary
Smith,
our
city
attorney,
along
with
with
Warren
Anthony,
who
we
all
know
who
has
been
so
helpful
to
us.
In
the
past.
We
have
our
Director
of
Finance
Kim
Abdi,
whose
work
very
tirelessly
on
so
many
of
the
issues
that
we're
facing
over
the
past
year
or
two.
We
have
Rob
sidle
from
empowerment,
one
of
the
largest
purveyors
of
retirement
services
to
public
sector
entities.
B
B
Who
is
an
actuary
that
can
answer
the
types
of
long-range
financial
questions
that
you
might
have
for
Milliman.
They
are
our
actuaries.
And
so
having
said
all
of
that,
we
do
have
a
presentation.
Then
we
want
to
open
the
rest
of
the
forum
for
your
questions,
but
we
can't
answer
your
questions
or
we
need
to
get
back
to
you
if
you
want
to
get
back
to
us,
feel
free
to
do
that
via
email
and
we'll
try
to
continue
to
tap
the
expertise
that
we've
assembled
here.
C
E
Based
on
that
formula
and
percentage
into
this
account
and
that
account
will
grow
over
time
as
they
provide
service
and
then,
when
they
leave
through
termination
or
retirement,
then
that
account
really
stays
with
them,
and
so
they
can
take
that
account
if
they
terminate
and
move
on
to
another
employer,
they
can
roll
that
into
an
IRA.
It
can
sit
there.
Thank
you
it's
kind
of
portable.
In
that
way,
then
it
can
move
around
and
at
that
point
of
termination,
the
city's
responsibility
for
funding
is
done
and
ended
if
they
retire.
F
I
guess
the
purpose
of
that
we
thought
of
this
slide
was
you
know
to
give
some
guidance,
and
there
are
several
studies
out
there
on
really
what
is
an
adequate
retirement
income
for
someone,
the
retired
say
at
age,
65
and
I
give
my
adequate.
What
we
mean
is
to
kind
of
have
a
similar
standard
of
living
that
that
individual
had
right
up
to
retirement
and,
like
I
said
there
have
been
several
studies.
F
I
mean
since
I've
been
an
actuary
back
in
the
early
80s
I've
seen
numerous
studies,
I
guess
the
two
that
we
relied
on
here.
There
was
a
black
paper
by
tiaa-cref
and
there
was
another
Society
of
Actuaries
factors
paper
and
what
we're
seeing
is
a
range
of
between
75
or
80
or
90%
of
what
someone
is
making
is
their
final
pay?
G
F
You
know
what
is
needed
on
that
end
in
order
to
get
to
our
you
know,
eighty
to
ninety
percent
and
then
what
what
these
models
are
showing,
and
it's
probably
a
little
more
than
you
might
think.
But
you
know
an
individual
really
needs
about
12
percent
of
savings
a
year
over
that
35
or
40
year
career
to
accumulate
enough
money
to
where
they
can
combine
that
with
Social
Security,
and
so
when
I'm
saying
twelve
percent,
that's
really
from
all
retirement
sort
of
retirement
savings
Kim!
You
mentioned
the
South
Carolina
deferred
comp
program.
F
You
know
what
type
of
defined
contribution
allocation
and
any
kind
of
you
know,
City
match
you
know-
is
to
help
us
kind
of,
because
I
think
the
purpose
is
to
give
these
new
hires
with
the
city
and
to
offer
a
program
that
they
can
feel
comfortable
and
proud
of
and
participate
in.
That
will
provide
them
with
that
retirement
security
that
they're
looking
for
did
you
have
anything,
came
to
add
to
that
or.
E
We
at
bolding
to
Jenkins
audit
over
300
governmental
entities
throughout
the
southeast
and
in
Georgia,
South,
Carolina
and
other
states
as
well
defined
contribution
plans
are
not
atypical.
I
mean
we.
There
are
a
fair
amount
of
defined
benefit
plans
that
still
exist,
but
it
does
seem
to
be
the
trend
and
not
even
the
trend.
It's
been
the
trend
for
several
years
now
that
governments
are
transitioning
to
defined
contribution
plans
and
some
of
my
clients
have
had
defined
contribution
plans
for
many
many
years,
maybe
never
had
a
defined
benefit
plan.
E
Are
you
kind
of
designed,
in
something
kind
of
a
time
period
to
make
sure
that
they're
going
to
be
they're
serious
about
working
with
the
city,
they're,
good
employees
or
valuable
employees,
so
you're,
giving
some
time
to
make
sure
that
works
out
before
you
then
start
providing
this
benefit
to
them
after
one
year
of
service
and
again
at
period
like
that
in
the
start
of
employment?
Is
not
you
know
some
that
we
see
with
a
number
of
our
benefit
plans,
so
that's
not
atypical
and
then
to
get
to
that
12%.
E
That
Ben
was
just
talking
about
you
guys
have
decided
to
the
city
as
the
employer
will
contribute
6%
of
that
funding
and
the
employee
themselves
will
contribute
the
other
6%
to
get
to
the
12%,
and
you
know
this
is
kind
of
all
across
the
board
and
my
clients
I
mean
we
have
some
that
are
more
heavily
funded
by
the
employer.
We
have
some
that
are
more
heavily
funded
by
the
city.
It's
just
there
are
all
sorts
of
ways.
E
This
is
just
a
choice
that
you
guys,
you
know,
can
decide
to
make
how
to
break
up
this
12%
I,
see
it
all
kind
of
different
ways,
but
certainly
an
even
split
of
6%.
That
again
not
be
a
typical
of
what
we
see
at
all,
with
with
many
of
our
our
clients
that
have
DC
plans,
and
then
you
also
have
a
provision
that-
and
this
is
very
typical
of
our
of
claims-
we
see
that
the
employee
would
be
fully
vested
once
in
their
contributions
once
they
make
them.
E
E
One
usually
there's
kind
of
a
gradual
scale,
sometimes
I've,
seen
what's
become
very
common.
These
days.
Is
that
maybe
the
first
three
years
you
don't
best
in
anything,
but
after
three
years,
then
you
start
gradually
scaling
into
you
best
in
20%
of
what
the
employer
contributes
then
40%
and
60%
at
years,
three,
four:
five,
six
and
seven.
Something
like
that.
You
guys
have
decided
to
just
make
it
a
hundred
percent
after
five
years,
so
you
know
get
anything
of
the
employers
part
in
any
of
the
first
five
years.
E
E
Say
it's
more
typical
for
us
to
see
gradual,
vesting.
Actually
what
has
become
the
most
typical
is
and
in
between,
where
it's
usually
like
two
to
three
years
of
you
don't
vest
in
anything
in
first
two
to
three
years
and
then
you
start
gradually
vesting
in
years
three
through
five
or
three
through
seven.
That's
probably
the
most
typical
that
I
see,
but
you
know
doesn't
that
doesn't
sound
all
that
different
than
just
a
gradual.
H
C
H
My
question
was
based
on
the
goal
of
encouraging
retention
of
people.
If
we're
going
to
put
city
money
into
their
retirement
plan
and
said
their
interest
as
well,
it's
not
it's
not
a
one-sided
benefit.
It's
you
know.
Whatever
we
can
do
to
encourage
people
to
stay
in
the
retirement
plan.
We
we
need
to
do
and
if
it's
gradual,
that
that's
worthwhile
yes.
B
Would
be
an
excellent
point
just
to
remind
all
that
we
have
put
on
the
table
a
very
rough
draft
and
we
will
continue
to
hear
that
they
can
give
us
some
advice,
but
there's
no
right
answer
and
so
there's
various
ways
that
we
could
do
vesting.
And
so
we
just
put
a
document
on
the
table
as
a
place
to
start,
and
we
hope
the
council
really
fully
debates
issues
like
that,
because
there's
no
right
or
wrong
there's
various
pros
and
cons
of.
I
E
I
C
C
C
C
J
Just
thinking
about
you
know,
this
is
a
benefit.
This
is
a
perp.
This
is
a.
This
is
a
thing
that
can
can
make
the
city's
outfit
employment
may
be
equally
you're
more
attractive.
Somebody
else's
often
employment,
but
you
know,
in
my
experience
in
the
private
sector,
usually
the
longest
that
people
would
have
to
wait
to
be
able
to
start
participating.
J
That
I've
seen
I
mean
I,
know
there
are
longer,
but
ones
and
I'm
accustomed
to
is
about
a
six-month
wait
or
less
and
then
also
the
vesting
period
is
usually
well
shorter
than
five
years
in
the
private
sector.
So
you
know
we're
worried
about
losing
people
to
private
sector
jobs
or
we're
not
been
able
to
attract
people
in
the
first
place.
J
H
Okay,
so
the
issue
that
concerned
me
was
we're:
gonna
pay,
somebody
$11
an
hour
and
then
their
13
month
present
is
a
6%
reduction
in
their
take-home
pay.
So
they
have
retirement
I'm
concerned
and
I'd
love
to
hear
what
you
have
to
say
that
that
seems
to
me
at
those
wages.
That's
a
that's
a
sizable
reduction
in
take-home
pay,
6%.
B
B
H
C
J
C
C
J
H
B
We
have
a
council
that
it's
finally
decided
that
it's
going
to
take
on
finest
financial
responsibilities,
instead
of
just
putting
everything
underneath
the
carpet
like
infrastructure
yeah,
but
we
know
that's
hundreds
of
millions
and
almost
hundreds
of
millions
of
dollars.
We
know
health
care
every
year
goes
up,
and
so
there
are
these.
These
costs
that
it
could
just
kind
of
continue
to
explode.
B
The
pension
cost
of
one
area
that
the
private
sector
decades
ago
began
to
address
that
the
public
sector
now
is
addressing
and,
and
that
is
putting
a
more
realistic
plan
together,
as
I
said,
I
have
never
found
another
entity
that
has
the
plan
that
Aiken
has
so
maybe
that's
something
we
should
in
the
past
have
been
proud
of
us,
but
it's
not
sustainable.
Unless
you
want
to
make
decisions
that
are
just
not
going
to
provide.
G
B
We're
not
in
financial
crisis,
so
so
your
stewardship
and
your
leadership
in
the
past
has
put
us
in
a
very,
very
good
position,
but
that
doesn't
mean
that
we
shouldn't
take
actions
to
forestall
absolutely
natural
calamity
in
the
future.
But
we've
made
a
commitment
to
our
existing
employees
and
we
don't
need
to.
We
don't
need
to
be
to
be
altering
the
bond
that
we've
created
with
our
employees
to
still
get
the
financial
benefit
that
we
want
to
get
in
the
future.
B
H
Wages
is
quite
correct:
I've
talked
to
an
employee
who's
in
with
us
for
nine
years,
I
think
as
I
recall,
making
$13
an
hour
and
we're
seeing
on
on
this
page
through
the
starting
salary
of
30,000.
We
don't
have
many
starting
salaries
at
30,000,
I,
don't
know
if
we
have
any
and
if
we
do
it
and
probably
be
in
probably
about
public
safety
would
be
clearly
well
over
well.
Over
30,000.
C
What
their
supervisor
do
we
want
to
get
back
to
the
example,
Ben
has
prepared
an
example
just
because
it
was
one
of
the
questions
that
was
asked
and
I
thought
it
was
something
that
I
had
left
out
of
the
raft.
So
just
two
and
I
think
one
one
other
thing
I
just
wanted
to
clarify.
Is
the
employees
orphan
that
six
percent
would
be
pre-tax
so.
G
C
Not
an
after
tax
reduction
to
their
take-home
pay,
it
is
pre-tax,
so
it's
not
quite
a
whole
six
percent
that
they
are
going
to
be
losing
and
it's
not
losing
it's
saving
for
retirement
and
on
their
six-month
anniversary.
Typically,
they
would
come
off
probation
and
receive
a
5%
salary
adjustment,
so
I'm
in
at
just
under
11
dollars.
They'll
have
an
adjustment
and
then
quick.
I
F
I
F
This
up,
where
it
could
be,
you
have
a
lot
of
flexibility
with
with
the
input
items
that
are
highlighted,
but
that
is
you
know
under
that
seven
percent.
That
is
assuming
that
the
it's
assuming
that
both
the
employee
money,
which
is
in
this
case,
is
six
percent,
and
then
we've
assumed
a
share
equal
sharing
on
the
employer
side.
So
it
is
assuming
that
that
both
of
those
sources
of
money
are
in
or
in
the
account
balance
and
that
they
are
earning
7%
for
that
full
year
period,
okay,
again
and
I.
F
Guess
with
the
illustration
we
had
Kim,
this
does
show
over
a
30
year
period,
we're
showing
the
the
replacement
without
any
employer
money
is
the
two
hundred
and
sixteen
thousand,
which
were
I'm
converting
it
to
if
that
person
could
take
that
money
and
go
to
an
insurance
company
and
purchase
an
annuity.
That's
that
was
my
goal
of
saying.
F
What
would
that
provide
is
a
as
a
monthly
annuity
and
so
with
with
the
hundred-percent
match
they're
having
the
four
hundred
and
thirty
two
thousand
dollars
which
to
go
out
and
purchase
an
annuity,
a
guaranteed
annuity
with
a
life
insurance
care
carrier
would
would
give
you
roughly
thirty
two
thousand
dollars
a
year
and
that
compared
to
that
person's
salary,
when
they
retire,
which
is
the
fifty
three
thousand
to
seventy
five.
That's
about
a
60
percent
replacement
ratio.
F
H
There
a
lot
of
skepticism
today
about
the
the
assuming
a
7%
return
and
I,
don't
think,
there's
anybody
in
the
room
to
get
to
7%
return.
Typically,
we've
we've
had
it
in
higher
than
seven
percent
returns
years
ago,
perhaps
prior
to
2007,
but
to
stop
this
plan
from
scratch.
Is
it
realistic
to
to
assume
that
we
can?
We
can
make
a
seven
percent
return.
F
F
J
K
Defined
contribution
plan
line
up
would
give
you
a
variety
of
different
asset
classes
to
choose
from
to
make
the
portfolio
as
personalized
as
you
want
it,
and
so,
depending
on
how
young
you
are,
you
might
be
a
little
bit
more
aggressive.
So
if
you
were
25
years
old
and
a
pretty
aggressive
portfolio
over
the
last
two
or
three
years,
you're,
probably
up,
you
know
a
much
higher
rate
than
7%
annually.
So
it
certainly
is
something
that
will
go
up
and
down.
K
But
depending
on
how
the
plan
gets
structured,
you
may
provide
certain
investment
options
that
will
do
the
investment
selection
for
the
participants
or
the
participants
can
have
the
responsibility
to
do
the
investment
selection
on
their
own.
So
it
comes
back
to
sort
of
how
you
would
structure
the
plan,
but
over
a
long
period
of
time.
If
you
look
at
a
diversified
portfolio
from
rolling
ten
year
period,
you
know
seven
percent
isn't
really
far
off
the
mark.
Over
long.
B
K
It's
gonna
be
a
lot
different
in
the
defined
contribution
plan,
so
we've
seen
it
from
people
that
are
2%
per
year
to
some
people
that
if
they
get
very
aggressive
or
and
forty
percent
any
here,
and
so
that's
where
some
of
the
education
and
the
investment
advice
can
come
in
to
help
to
make
sure
that,
depending
where
you
are
in
your
life,
what
sources
of
income
you
have
available
to
you?
How
do
you
structure
this
type
of
an
account
in
the
most
optimal
way
to
achieve
that
income
replacement
that
you're
looking
quickly.
I
Ask
a
real
weird
question:
assuming
an
employee
starts
participating
a
year,
two
I
guess
that's
the
way
and
react
like
he
was
vested
from
year
two
on,
but
he
leaves
just
prior
to
year.
Five.
Now
he
has
monies
in
there.
You
know
six
percent
from
his
pocket
six
percent
from
the
city
and
if
there's
a
seven
percent,
gain
how
much
of
that
seven
percent
gain.
You
know
he
leaves
just
before
he's
not
vested.
He
has
to
get
his
own
money
back,
but
did
his
own
money
do
any
gain
at
all
exactly.
K
So
you
could
have
you
know
if
it
was
a
private
company
retirement
plan,
you
might
have
four
sources
of
income
that
come
into
that
bucket
and
as
the
record-keeper
they
would
account
for
each
bucket
of
money,
and
so
in
that
example,
the
participants
money
would
be
accounted
for
and
then
obviously
the
gains
attributed
to
that
bucket
would
be
theirs
to
take
with
them
when
they
separate
service.
So
you
might
have
two
line
items
where
you
have
an
employee's
contribution
and
employers
contribution.
C
F
F
But
you
know
if
they
decide
you
know,
but
the
bottom
line
is
frankly,
you
know
if
the
whole
purpose
is
the
defined
benefit
plan
and
what
we're
seeing
is
to
just
to
be
able
to.
You
know
to
budget
that
better
and
to
to
account
for
the
liabilities
and
the
defined
benefit
plan.
Anything
that
you
can
do
by
getting
these
people
to
cross
over
you're,
eliminating
any
kind
of
future
liabilities
that
could
be
volatile
and
how
we
measure
them
so
you're.
There
will
be
an
ultimate
cost.
F
Saving
to
the
city
for
people
that
choose
to
join
that
are
currently
in
the
defined
benefit
plans.
It
will
the
will
that
would
decide
to
cross
over
the
way.
I
understand
this
Kim.
They
would
actually,
you
know
the
their
account
the
defined
benefit.
What
their
accrued
would
actually
not
go
into
the
defined
contribution
plan
until
the
beginning
of
2019,
so
there
will
be
a
time
to
where
we
can
sit
and
talk
with
the
employees
that
are
effect
that
to
where
they
can
make
a
prudent
decision
that.
C
Is
our
plan
as
we
have
it
written
counsel,
so
chooses
to
start
the
defined
contribution
plan
it
would
be
for
employees
hired
after
January
1
of
18
or
whatever
date
y'all
choose,
and
then
we
would
have
that
year
to
educate
current
employees.
Get
a
record
keeper
on
board
set
up
the
accounts.
Have
everything
in
place
for
that
first
payroll
deduction
one
year
up
so.
H
C
I
C
And
the
defined
benefit
plan
would
need
to
be
simultaneously
amended
if
we
have
a
contribution
plan
to
make
these
changes
in
the
defined
benefit
plan.
As
well,
and
just
a
brief
comment
about
the
defined
benefit
plan.
Ben
can
speak
to
this
one.
Obviously,
it
provides
a
lifetime
benefit
and
it
will
eventually
drink
to
the
point
that
it
ends
when
the
last
employee
become
a
retiree
passes
on
and
the
plan
is
is
closed.
F
Know
you
touched
on
some
of
it.
You
know
just
to
quickly
go
through
that.
You
know.
Currently
this
the
defined
benefit
plan.
There
is
no
content,
there's
no
employee
contribution,
it's
totally
paid
for
by
the
city.
It
is
what
I
would
call
a
very
well
funded
plan
within
it.
What
we
call
the
funded
status
is
91%
there
currently
planned
assets
of
about
33
and
I.
Of
course,
this
was
at
the
end
at
the
beginning
of
July
Kim.
There
were
assets
for
about
thirty
three
and
a
half
million
liabilities
were
thirty
six
and
a
half
million.
F
So
right
now
you
know
I
think
left
less
than
half
your
total
participants
or
active
employees
and
again
I
think
bikes.
By
limiting
you
know
what
we're
seeing
is
just
by
limiting
future
entry
freezing
future
entry
of
actives
is
just
it's
going
to
help
the
and
be
more
predictable
and
what
it
cost
and,
in
result,
in
savings
on
the
you
know
to
the
city
because
of
the
defined
contribution
program.
C
In
our
current
average
pension
we
write
one
hundred
and
thirty
six
checks
a
month
and
the
average
pension
is
one
thousand
five
hundred
eight
dollars
a
month
or
translated
to
an
annual
pension
of
eighteen
thousand
one
hundred
two
dollars
and
since
we've
started
keeping
track
of
replacement
percentage,
which
has
only
been
in
about
the
last
five
or
six
years,
the
average
replacement
upon
retirement
is
forty
one
percent,
so
I
think
that
kind
of
goes
well.
We
followed,
along
with
the
statistics
that
we've
been
talking
about.
What's.
L
H
C
F
There
is
asset
smoothing
what
we
call,
and
you
know
there
have
been
many
several
years
recently,
where
you,
let's
say,
you've
earned
12
percent
on
your
trust
fund.
We're
smoothing
that
over
a
three
year
period
to
where
that
it
kind
of
helps
to
kind
of
cushion
the
years
where
you're
you
know,
you're
only
getting
three
or
four
percent
annually,
so
I
I,
don't
have
it
in
front
of
me
Kim,
but
I
do
think.
Historically,
the
trust
fund
has
performed
very
well
over
the
last
10
or
15
years
with
which
was
taking
account.
C
L
C
L
K
J
J
J
K
J
L
J
L
J
C
L
L
J
L
F
Will
say
that
in
the
private
sector
we
see
a
lot
of
these
love
some
windows
for
vested
terms,
because
they're
avoiding
it's
a
way
to
avoid
the
PBGC
premium,
which
is
an
insurance
agency
in
Washington
DC
that
all
corporate
plans
are
under
and
they
the
panel
heck
of
a
tax,
so
they're
able
to
no
but
be
I.
Will
reiterate,
though,
that
you
can't
just
buy
them
out.
You
have
to
give
them
the
option
to
cash
it
out,
and
they
can
either
take
it.
L
F
I
Got
a
quick
question:
you
mentioned
education,
yeah
I
know
this
a
few
years
ago.
There's
a
way
to
play
numbers
like
an
equation
on
whether
you
take
your
Social
Security
at
62
versus
way
to
you
know
your
get
full
Social,
Security
and
you've
been
on
living
a
certain
length
of
time.
You
can
put
that
into
a
formula.
I
Have
you
done
or
do
you
have
a
formula
that
you
can
show
people
that
are
younger
than
35
years
old
and
have
less
than
10
years
of
service
and
the
people
that
have
two
years
two
years
or
less
of
service?
Is
there
a
way
you
can
actually
have
a
formula
just
plug
in
their
salary
life
expectancy
or
whatever
you'd
come
up
with
a
an
equation
that
tells
you
which
is
more
beneficial.
I
K
K
So
it's
a
little
bit
different
than
just
I'll
assume
a
7%
rate
of
return
every
year
and
I'll
take
out
4%
from
my
accountant,
because
that's
just
not
how
the
real
world
works,
that
type
of
simulation
will
take
into
consideration.
Both
market
highs
market
lows
to
see
how
that
impacts.
What
you
would
get
from
your
not
only
retirement
account,
but
maybe
also
help
you
decide
when
to
take
Social
Security
is.
H
E
M
H
N
H
C
C
So
it
would
change
that
and
state
that
no
new
participants
will
be
added
after
the
ones
that
enter
employment
on
December
31st
of
2017.
If
that's
the
year
we
end
or
the
date
you
choose
and
it
will
shrink.
The
defined
benefit
plan
will
continue
to
shrink
onto
passes
that
might
be
50
years
from
now
that
might
be
48,
62
I,
don't
know
everybody
could
take
their
guess,
and
maybe
nobody
would
be
right,
but
ultimately,
that
defined
benefit
plan
would
cease
to
exist.
D
Here,
first
of
all
and
I
love
the
Khimki
gasket
or
John
at
home
in
power,
it's
just.
The
only
investment
group
is
taking
a
look
at
number
one
and
secondly,
I'm
trying
to
think
of
where
they
headquartered
and
the
other
areas
in
south
children
are
Georgia,
but
they
have
introduced.
This
plan
to
I
know
that
they
have
partnerships
with
a
number
of
areas
like
great-west
life.
They
on
what
I
can
read
the
president,
Edmond
Murphy
has
an
incredible
background,
but
I
don't
know
how
long
empower
has
been
around
and
certainly
the
risk.
D
What
are
the
risks,
with
the
options
being
presented
to
an
employee
and
forth
when
you
look
at
the
retirement
and
what
the
employees
are
investing?
Are
we
considering
the
payment
we
give
these
employees
from
the
starting
pay
of
859
dollars
an
hour
all
the
way
up
to
our
highest
state
employee
that
entire
range
and
an
official
response
we
owe
and
recite
the
financial
strength.
I
know
that
break
where
seems
to
have
put
incredible
financial
stress,
but
I
don't
know
about
the
other
investment
companies.
D
C
To
explain
how
we
came
to
invite
empower
today,
empower
manages
the
state
of
South.
Carolina
is
deferred
comp
plan.
They
also
were
selected
through
an
extensive
RFP
with
the
town
of
Hilton,
Head
Island,
and
so
for
those
two
reasons
I
reached
out
to
them,
and
they
were
gracious
enough
to
be
here
with
us
to
represent
what
a
record
keeper
would
do
and
to
answer
the
types
of
questions
that
would
relate
to
that.
But.
B
K
Great
was
life,
Coe
is
the
parent
company
for
empower
retirement?
Great
West
has
been
around
as
a
company
since
1850
in
2012
there
was
a
merger
with
JPMorgan
and
Putnam
to
combine
their
retirement
plan
business,
which
was
the
genesis
for
empower
retirement.
The
company's
headquarters
is
in
Denver
collar
righto,
and
so
that's
where
they
have
their
main
headquarters
of
operation.
They
also
have
satellite
offices
in
Milwaukee,
Overland,
Park,
Kansas
and
Waltham
Massachusetts
in
terms
of
the
risk
part
of
the
process
in
identifying
a
separate,
independent
record
keeper
would
be
having
them
also
custody
the
assets.
K
D
You
are
the
chosen
provider
to
servicing.
I
know
that
we
have
a
number
pages
that
have
been
handed
out
to
counsel
and
given
the
level
of
employees
that
we
have
various
Department.
Will
there
be
a
simple
question
answer
for
these
employees
that
they
can
easily
comprehend
what
they
are?
Investing
in
and
I
don't
have
a
copy,
that's
20,
showing
what
you
some
of
the
slides
but
I'll
get
one
when
I
return
to
Aegon,
but
I'm,
just
looking
for
some
some
simplistic
for
them
to
clearly
understand
what
what
the
second
their
being
with
Boch.
Before
yes,.
K
K
A
choice
of
investment
options
that
the
employer
would
designate
so
that
could
run
the
gamut
from
you
know:
50
different
options
down
to
a
more
streamlined
investment,
menu
of
maybe
20
options
or
15
options
that
could
include
aggressive
large
cap
fund,
small
cap
funds
and
then
also
what
they
call
target
retirement
funds
that
are
designed
to
be
a
default
investment
option,
usually
based
off
your
date
of
birth.
So
that
is
one
option
that
you
know.
K
Most
record
keepers
would
offer
and
there's
a
whole
nother
process
that
you
would
go
through
to
determine
which
type
of
those
target
retirement
funds
are
better.
What's
their
allocation
at
the
target
retirement
age?
What
other
assumptions
are
they
building
in?
Do
they
have
a
glide
path?
How
long
is
that
glide
path
of
equity,
two
fixed
income
and
so
forth,
because
they
can
be
very
different
from
company
to
company?
K
D
K
C
D
K
Has
to
do
with
the
technology
that
the
record
keepers
offer
some
run
a
proprietary
record-keeping
software
that
they
build
on
their
own,
keep
track
of
manage
others
by
third-party
off-the-shelf,
so
they're
buying
another
record-keeping
product,
but
they
just
put
their
name
on
it
and
there
might
be
less
customization,
less
technological
advancement,
less
participant
engagement.
So
those
are
some
of
the
other
things
that
are
considered
in
terms
of
who
you
decide
to
select,
as
as
a
record
keeper
I
could.
K
You
can
get
paid
a
number
of
different
ways
and
that
would
be
part
of
the
decision-making
process
upon
the
selection
of
the
record-keeper.
Typically,
you
would
see
either
a
fee-based
asset-based
feet
or
head
count
feet,
or
maybe
a
combination
of
the
two.
Some
record
keepers
may
get
paid
based
on
the
investment
options
that
they
offer
in
the
plan,
so
in
the
selection
process.
That
would
be
something
to
consider
is
the
record.
K
K
K
C
G
H
C
C
From
scratch,
but
for
the
potential
I
think
we
think
there'd
be
about
90
potential
people
that
could
choose
to
leave
the
DB
plan.
Now,
as
Ben
mentioned,
there's
formulas
to
you
know,
estimate
how
many
of
those
people
would
choose
to
go
into
the
DC
plan.
But
then
maybe
we
don't
hire
anybody
in
January
of
2018,
maybe
their
first
potential
participant
comes
on
board
in
January
or
February
of
2018,
so
that
means
in
February
of
2019.
The
first
dollars
would
go
into
their
plan.
C
K
So
what
they
usually
do
and
come
up
with
certain
break
points.
So
at
the
outset,
for
a
starter
plan,
there's
usually
going
to
be
a
minimum,
be
required
and
then
has
enough
people
come
into
the
plan
that
meet
that
fee.
Minimum
based
off
of
the
participant
head
count
or
asset
size.
Then
after
minimum
people
go
away.
Obviously,
because
now
there's
enough
of
a
population
in
the
plan
to
cover
this
boss,
but.
H
G
K
C
The
interest
of
time
I
hope
Rob,
doesn't
mind
that
he
has
provided
you
some
empower
slides
that
specifically
speak
to
record
keepers
and
repair
and
power,
obviously
particular,
and
you
have
those
in
your
packages
and
I
did
want
to
be
able
to
spend
time
to
look
document.
If
Sarah
can
pull
that
up.
What
you
have
in
your
agenda.
H
I
certainly
wouldn't
want
to
hurry
and
process
I
want
to
make
the
slow
and
deliberate
I
mean
we're
gonna,
we're
gonna
end
up
with
a
couple
of
people
here
that
are
participating
here.
That
won't
be
as
we
as
we
go
through.
November
and
I
see
one
new
council
member
here,
the
other
two
I
don't
see
but
I'd
like
to
make
sure
we
do
it
right.
So
far,
that's
a
very
significant
issue.
I.
L
B
Might
be
helpful
to
start
forward
and
work
with
our
way
back,
because
we
had
initially
contemplated
implementation
as
of
January
2
2018,
so
you
can,
if
you
decide
when
you
want
to
implement
that,
you
can
figure
out
how
much
time
you
need
if
we
so,
the
answer
was
we're
not
pushing
anything
down
your
throat.
We
don't
know
whether
you
need
one
more
meeting
or
you
need
ten
more
meetings.
It
doesn't
matter
what
you
clear
at
the
time
that
you
take.
This
is
an
important
decision,
but
I
think
at
the
end
of
the
day.
B
H
G
L
I
J
J
We
could
determine
whether
the
direction
you
want
to
go-
and
you
know,
as
you
kind
of
restate
what
you
said
John-
and
this
is
a
very
generous
thing
for
the
city
to
with
new
hires,
maintaining
our
obligation
to
the
existing
employees,
but
with
new
hires
still
matching
six
and
their
salaries,
the
contribution
to
a
pidgin
plan.
But
as
some
of
these
these
plans,
these
programs
are
heavily
regulated,
highly
competitive
and
and
vary
in
employee
investor.
Centric
I
mean
they're.
J
They
really
are
designed
and
structured
to
to
help
us
protect
our
employees,
help
we
help
the
employees
protect
themselves
with
some
of
the
investment
options
they
have
and
everything
else
I
mean
there's
a
lot
of
little
nuances.
We
could
work
out
details
on,
but
but
all
in
all
it's
a
big
picture.
Question
of
is
this:
the
direction
we
want
to
go
and
I
think
we
could
probably
answer
that
one
fairly
quickly,
I.
L
L
We
want
to
give
direction,
say:
okay,
move
forward
and
figure
out
what
the
fees
are
and
who's
going
to
wear
and
use
these
numbers
on
them.
So
there's
some
more
homework
that
needs
to
be
done,
but
I
don't
think
we
ought
to
ask
them
to
spend
their
funds
to
provide
the
homework
unless
counsel
think
that's
the
direction
to
go,
and
maybe
the
next
meeting
we
instead
of
saying
a
resolution
to
approve
it.
It's
a
resolution,
that's
the
direction
we
want
to
not
go
in.
This
is
the
data
we
need.
H
M
M
M
N
I
L
Say
let
me
suggest
a
step
forward,
I'm
a
hardness
person,
because
my
first
few
years
on
council,
we
did
everything
by
resolution
and
got
them
at
the
meeting
that
we're
gonna
vote
on
and
I
guess
this
might
be.
If
we
did.
This
is
a
possibility.
If
we
did
two
readings
on
this,
the
first
reading
would
be
to
answer
the
questions.
L
Get
these
other
employees
that
potential
the
90
people
that
have
the
potential
and
then
we
say
the
second
reading
is
not
in
two
weeks
but
whatever
set
it
for
the
meeting
in
December
of
something,
and
if
you
do
that,
then
you've
set
it
up
for
the
second
of
the
new
council
to
be
weigh
in
on
it
too.
I
mean.
A
I
would
certainly
be
comfortable
and
that,
speaking
with
staff,
I
mean
I.
Think,
first
of
all,
a
resolution
I
liked
your
idea
of
something
to
say:
let's,
let's
explore
this
further,
so
it
so,
it
gives
a
consensus
of
council
and
then
I
mean
I.
I,
don't
disagree
with
it
doing
an
ordinance
forward.
I
mean
I,
think
it's.
It
could
be
either.
So
if
we
could
do
it,
an
ordinance
that
would
have
to
but
I
mean
just
so
that
it
doesn't
take
another
one
to
move
forward.
A
L
There's
some
questions
that
have
been
asked
by
the
various
members
of
council
and
what
miss
avenue
said.
You
know
we
need
to.
We
need
to
go
to
these
I'm
going
to
use
with
90
employees
and
see
what
their
thoughts
are
about,
transferring
if
that
makes
a
difference
to
the
fees
we
pay
and
so
forth
and
I
think
you
know
we
need
to
move
to
that
step
and
if
the
companies
feel
more
confident
that
we
pass
a
resolution
that
hey
we
want
to
do
this,
but
we
need
more.
We
need
some
answers.
That's
fine
with
me.
H
J
Just
for
clarity
sake,
so
there's
no
confusion
for
the
newspaper
or
whomever
there's
no,
nothing
that
is
necessarily
going
to
change
for
any
existing
employees
that,
whether
there's
90
that
are
eligible
to
change
or
not.
That
can
be
something
that
done
of
their
own
free
will.
There
will
be
a
no
pressure
to
do
that
and
if
they
determine
it's
in
their
own
best
interest,
they'll
do
it
and
as
far
as
the
fees
goes,
it
has
been
already
answered
to
us.
J
If
they
want
it,
they
can
keep
it
nothing's
gonna
change
as
long
as
they
keep
working
it's
only
if
they
decide
to
make
the
decision
later
to
switch
the
defined
contribution
plan
and
that's
entirely
of
their
own
free
will.
There's
nothing.
That's
gonna
change
anything
for
anybody.
That's
working
for
the
city
of
Aitkin
right
now
on
their
retirement.
H
C
Not
going
to
be
buying
a
widget,
you
know,
so
it's
really
a
nebulous
number
until
we
know
what's
going
to
be
in
the
plan.
So
it's
not
like
we're
going
to
be
saying.
We
want
to
buy
this
or
$100,000
or
anything
like
that.
But
I
do
appreciate
mr.
Murray's
comment
because
I
for
one
do
not
feel
qualified
to
educate
on
people
prior
to
having
a
defined
contribution
plan.
What
we
wouldn't
even
know
what
to
tell
them.
G
C
H
N
Now,
if
you
adopt
it
effective,
January,
1
2018,
we
purposely
did
it
this
way.
We
don't
need
to
have
a
record
keeper
in
place
and
everything
until
January,
1
2019,
and
that
would
give
us
12
calendar
months,
which
we
hope
to
pick
a
record
deeper
in
the
first
six
to
eight
of
those
months
which
really
didn't
give
us
another
six
to
four
months
to
do
the.
N
These
people,
so
we
designed
it
for
that.
That's
one
of
the
reasons
for
the
one
year
of
service
to
give
us
the
next
12
months
to
have
everything
in
place,
but
I
do
say
that
you
need
if
it's
gonna,
be
a
January
1
2018
day.
It
needs
to
be
adopted
before
then,
because
it
is
not
adopted
before
then.
When
we
hire
someone
in
January
of
2018,
we
don't
know
what
to
tell
them
as
to
what
will
happen
to
them.
So
I
mean
I.
N
Think
the
idea
of
taking
your
time,
but
in
adopting
it
by
and
by
the
end
of
December
woodwork
and
put
it
in
place,
then
the
staff
can
go
forward
on.
You
know
doing
the
mechanics
of
what
needs
to
be
done
to
implement
it.
In
that
time
they
can
come
to
Council
and
say:
look
we've
had
we
talked
to
these
record
keepers.
These
are
the
fees
we
want
to
tell
you.
This
is
our
recommendation.
Do
you
agree
with
us?
That's
one
approach,
or
you
just
say:
hey
staff.
N
You
can,
but
with
a
start
up
plan,
you're
gonna
want
a
partner,
not
just
a
generic
record
keeper
you're
gonna
want
somebody
who's
coming
in
because
they're
saying
look.
This
is
a
start
up
plan.
We're
not
gonna,
make
any
money
and
they're
gonna
probably
say
we
would
like
a
five-year
commitment
to
go
in,
but
we
want
to
commitment
from
you.
That's.
N
Us
so
we
can
work
it
out.
So,
while
yes,
you
can
you
want
to
pick
the
record
keeper
that
you
feel
comfortable
with
for
the
extended
time,
one
of
the
reasons
empower
was
brought
because
they
work
with
the
state
of
South
Carolina
and
do
their
457
plan
and
Hilton
Head
after
a
involve
process
also
selected
them.
They
are
very
highly
rated
by
the
national
organizations
who
interview
financial
advisors
and
plan
sponsors,
so
they're
they're,
highly
rated
and
highly
thought
of
so
I
mean
they
might
be
a
good
partner,
I'm,
not
sure.
N
L
A
H
A
L
N
N
J
L
L
Yeah
go
to
page
seven
of
the
package
it
was
sent
out.
That
needs
to
be
part
of
this.
Whatever
cover
letter
we
want
to
put
on
it
so
that
when
somebody
says
well,
what
did
you
vote
on
or
what
did
you
work
from
we're
all
talking
from
the
same
document,
because
this
is
a
work
session?
A
lot
of
people,
don't
look
at
the
stuff
in
the
work
session,
but
they
look
at
the
minutes
of
the
council
meeting.
Oh
I,
see
what's
important.
I
get
your
way
and.