2013-09-26-RB-min - Laserfiche WebLink

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since it appears the managers have not made the correct investment decisions. Is GTAA working or should the Board look to replace this asset allocation? 40% of the total investment is with GTTA's. The Meketa report included an underlying asset allocation that includes the 5% allocations to Monroe and PRIT Hedge Funds and noted using Meketa's 2013 Annual Asset Study, the system would have a 20 year expected return of 8.2% and standard deviation of 14.5 %. There was a discussion of increasing the COLA base from $12,000. Rob asked that David Driscoll at Buck Consultants be asked to see what the impact would be by increasing the base by $1,000 increments up to $16,000. It was noted this report was done in the past and that report will be sent to the Board. The PERAC Auditors completed the 2010 — 2012 audit and the preliminary draft findings were presented to the Board. Because the first finding was the number of missed meetings by Mike in 2010 and 2011, Bob asked if both Mike and Alan would be willing to partake in conference calls if they are unable to attend a meeting. The PERAC memo concerning conference calls will be reviewed and information will be presented to the Board. The second finding referred to a member who was never changed from OBRA to Town Retirement when her hours or employment increased in 2000. A calculation has been prepared of the amount due to the retirement system and Denise Casey, HR Director, will notify the member of the issue. A third finding of a mistake in the calculation of Annuity Reserve Fund interest at year end 2011 was caused by a problem with the PTG software and this finding was removed. The Board decided to withhold any further discussion until the final draft is received. The Board reviewed Mike Sacco's response on the question of Group 2 creditable service for the dispatchers who were granted Group 2 status from May 1999 --- Oct. 2007, at which time they were placed back in Group 1. Mike's response was that putting them back into Group I was to correct an error of placing them in Group 2 and therefore they cannot be given credit under Group 2 classification for the years in question. The other Group 2 question was from Karen Simmons who had worked at Fernald School before being hired in Lexington. Mike's response was that it will be up to her to prove that she worked in a Group 2 position there and it will have to be satisfactory so the State Retirement can be billed pursuant to section 3(8)( c ) for that position of her retirement at the Group 2 rate. The 2012 excess earnings report for James Weston was received and the total due the Lexington Retirement System is now $80,470. A motion was made by Bob, seconded by Joe and voted unanimously that he will be allowed to pay off the note over a 10 -year