2010-10-28-RB-min - Laserfiche WebLink

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MINUTES OF THE OCTOBER 28, 2010 RETIREMENT MEETING Present: Robert Cunha, Rob Addelson Alan Fields, Joe Foley, Mike McNabb, Marguerite Oliva Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 102910 warrant and the October payroll. The September minutes were reviewed and signed. New Members: (7) Cynthia Cotarino, Katharine Jackson, Alexander Merrifield, Student Support Instructors; Theodore McCormack, LHA Maintenance Supervisor; Dawn Belson, Library Support; Caroline Nottingham, Instructional Assistant; Christine Severe, Police Officer Retirements: Philip Silva, DPW Highway Laborer, 10/29/10 Jason Chalmers and Patrick McCafferty presented the Acadian review. The portfolio has increased 3.6% this year and has outperformed the benchmark. A large holding in BP hurt the portfolio. A statement was issued at the time of the oil spill not to purchase anymore BP stock but Acadian also decided initially not to sell as they were afraid of a gut reaction. They currently still have a 1% holding. They participate more in small to mid cap stocks and are at the limit of 7% held in emerging markets. Europe is seen as an attractive market and Japan is less attractive. There report is on file. There was a discussion of the possibility of selling Acadian and moving to a global multi - asset manager or large cap international manager. Meketa forwarded a copy of the September 30, 2010 interim update for the Board's review. The 9130/10 market value is $104.2mm, up from $94.3mm on 6 /30 /10. The underlying investment asset allocation indicates a 14% holding in emerging markets. Alan wants to have Fran Peters report on which funds make up the 14 %. Other questions to be asked are 1) in the aggregate, do we have capitalization bias relative to the benchmark? 2) What was the market capitalization when Acadian was hired compared to now? 3) Do the current international managers - Matthews, Artio and Acadian compliment each other and 4) how have we done compared to PRIM and other systems? There was a discussion of the mandated 8% assumption. The Board discussed having a meeting and inviting Sen. Donnelly, Rep. Jay Kaufman, Peter Diamond, Nobel prize winner, and David Driscoll from Buck. A request will be made to have Buck create some funding schedules with assumptions of 7.5 %, 7% and 6.5% using a smoothing method and extending the date out to when the unfunded liability would be retired. A motion was made, seconded and approved unanimously to accept the revised actuarial schedule dated 10/22/10 which is extended out to 2020. The Board agreed to research the possibility of the Town issuing a pension obligation bond. The objective would be to utilize the Town's excellent long -term borrowing rates