2012-09-27-RB-min - Laserfiche WebLink

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GASB standard 67 for retirement systems reporting will be reflected beginning in FY' 14 and the GASB standard 68 for the Town will begin in FY' 15. The Board decided to postpone a decision on adopting a funding schedule until Buck provides the requested reports. The 7.75% assumption is still under consideration. The Board asked David to prepare the reports as quickly as possible for the Board's review. Once the reports are forwarded, the Board will convene for a meeting in order to adopt a new funding schedule. Henry Jaung from Meketa presented the interim Aug. 31, 2012 report. Meketa is now incorporating PRIT information in each Lexington Retirement report for comparison. The market value as of 8/31/12 was $111.2m, an increase of $1.6m from 7/31/12. The total return for the system year -to -date has increased 9.4% with the strong performers being Contrafund, Loomis and PIMCO All Asset Fund. The aggregate assets for most classes have exceeded the comparable PRIT Funds. Alan mentioned that to be more like PRIT an investment in hedge funds is needed. This could be accomplished by reducing the equity assets and investing in hedge funds through PRIT. Henry will bring the September quarterly report to the next meeting. $450,000 was transferred from Contrafund to State Street to cover monthly expenses. Estimating that the expenditures run about $2mm short each year, the Board would like to have a method in place that would prevent a quick decision on which fund to use to cover the shortages. Artio Global was liquidated and the funds transferred to FMI Large Cap Fund on 9/4/12. A Worker's Compensation settlement for Charles Sortino was reviewed by Mike Sacco and accepted. It was noted that the $5,400 that was paid to Mr. Sortino is subject to the pension offset. The Board voted unanimously to allow the offset to be extended over five months. PERAC reevaluation notifications were received for Joe Sveistys and Robert Staples. PIMCO will be asked to attend the October meeting for an annual review. After asking Karen to leave, the Board and Maggie discussed Karen's r raise and her request to increase her hours to 20 per week, making her benefits eligible and also her request for a third weeks vacation. Bob referred to the compensation consultant's survey that indicated Karen's salary was far below other assistants in her position. Maggie spoke of her job performance noting that she had shown great improvement and mentioned that Karen would be more than capable in running the office. Since Rob had asked Bob to use the LEMA step table, Maggie calculated that her hourly rate should be increased from $20.00 to $23.98. The Board unanimously voted to grant the increase to $23.98 retroactive to 7/1/12 and a third week vacation.