HomeMy WebLinkAbout2015-05-28-RB-minMinutes of the May 28, 2015 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Alan Fields, Rob Addelson, Marguerite Oliva and Karen Marchant
Absent: Fred Weiss
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (1) Jill Irvin, Treasury Assistant
DEATHS: Joseph Schwarz, Custodian, 1/15/15(notified 4/22/15); Joe Medlin, DPW Manager, 5/26/15
RETIREMENTS: Pansy Lynn, School payroll supervisor; 8/2/15; Marjorie Oberto, IA, 6/29/15; Janet
Zaleznik, School Tech. Specialist, 7/1/15
The Board accepted and signed the 052915 Warrant and May payroll. The April 2015 minutes were
reviewed and approved as well as the cashbooks for March 2015.
The Board requested an opinion from Attorney Mike Sacco concerning investment documents received
from William Blair and Co. Mike Sacco forwarded a lengthy analysis letter to the Board and Meketa. It
was determined there were only 4 minor issues, due diligence and regulatory in nature to which the Board
and Meketa determined there are no real concerns. The Board expressed their displeasure regarding the
detailed and voluminous responses they are receiving from the attorney regarding the recent investments.
PERAC approvals for White Oak and Golub investments have been received. $4m will be invested with
each investment. Wellington Opportunistic and Loomis Sayles will be used as the funding sources as the
investment calls are received. PERAC approval has not yet been received for William Blair & Co which
will be a $5m investment with Wellington Opportunistic used as the funding source.
An Involuntary Retirement Application requesting retirement for either ordinary disability or
superannuation has been received from the Facilities Department for custodian Louis Orifice who fell
while at work. He may apply for an accidental disability but it is unclear if he was performing his duties
at the time of the fall. The calculation for superannuation or ordinary disability will be the same for Lou
because he is older than 55 and not a veteran.
The interim actuarial update for 1/1/15 has been received from Dan Sherman. Analysis show the current
funding schedule is still reasonable.
It was reported that Beacon Distribution #10 for $69,102.88 was received.
A correspondence was received and presented of retiree Barbara Benton's 100th birthday 5/17. Barbara is
currently the oldest retiree in the LRS.
The Board was reminded of Memo #10 regarding Board member training for 2i'd qtr. 2015.
Information was receive about the PTG Employee Self Service module that will allow employees to do
such things as review their annuities, calculate estimates, etc. There will be a presentation at the MACRS
conference of the new module.
Joseph Beauparlant from Loomis was present for the annual review of the Credit Asset Trust. He
reported they have 240.8 billion in assets under management and gave a strategy overview giving a
historical credit cycle from 2001- present. As of 4/30/15 Lexington's market value is $10,521,752.91 with
a yield of 4.60% and a benchmark of $4.12 %. He also discussed structure & guidelines, characteristics,
positions and outlook.
Julie Carman Lind and Zela Astarj ian from RhumbLine were present for the annual review. As of
4/30/15 Lexington's market value is $12,621,192.14 with YTD yield of 2.30 %, 1 year at %12.96 and
16.24% since inception. They reported that Lexington Retirement System holds L36% ownership in
RhumbLine's Russell 1000 Pooled Index Fund as of 4/30/15. They provided a list of the 10 ten holdings,
commissions, organizational chart and new clients and products.
Stephen MacLellan from Meketa presented the interim update as of April 30, 2015. The market value as
of 4/30/15 is $144.5 mil up from $141.6 mil as of 3131115. They reviewed Asset Summary at Security
Level. Alan requested that Meketa create a new chart for the next meeting that includes the new
investments to show what the portfolio will look like with the three new investments and to change the
Hedge Fund target allocation to 10% with a target range of 5 -10 %.
It was reported Joe Haynes had his PERAC reevaluation and it was determined he can't go back to work.
It was reported Joe O'Leary filed an appeal with DALA regarding the non - inclusion of lump -sum
vacation pay in his retirement calculation.
PERAC updated the funded ratios in April. Lexington has the highest funded ratio of any town in the
Commonwealth and the fifth highest ratio out of 107 retirement systems. It was suggested the public be
made aware.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:00.
The next meeting will be held June 25, 2015, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
absent
Frederick Weiss, Appointed Member