2013-11-21-RB-min - Laserfiche WebLink

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Minutes of the November 21, 2013 Retirement Board Meeting Present: Robert Cunha, Joe Foley, Rob Addelson, Alan Fields, Mike McNabb, Marguerite Oliva, Karen Marchant Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 112913 Warrant and November payroll. The October minutes were reviewed and approved as well as the cashbooks for September 2013. NEW MEMBERS: (10) William Allen, Custodian; Kerry Benshoff, Sheryle Rogato, SPED IA; Asako Burr, Library Desk Attendant; Michael Alexander, Matthew O'Leary, Arborist; Sacha Clavell, School Payroll Specialist; Christopher David, Kathleen Hohler, Field Tech Maintenance Associate; Annie Turner, BCBA; Jenna Loconte, SSI RETIREMENTS: JoAnne Waller, Instructional Asst., 12131113; Edwin Kendall, DPW Laborer, 113114 The Board questioned Monroe Capital's calls and distribution process. Henry was asked to contact the plan administrator to determine the reason the calls were made rapidly for the entire commitment of $6,000,000, why a disbursement of $3,127,321 was made and why another call was received for $795,756 a month later. Meketa will monitor the situation and try to resolve it and report back to the Board. The Board discussed the possibility of increasing the COLA base. The two year old Buck study that shows the cost of the increases at that time was reviewed. The latest "Voice of the Retired Public Employee" report shows that 52 communities have accepted a new COLA base ranging from $13,000 - $18,000. Rob mentioned that Town Manager Carl Valente stated that Lexington offers richer health plans to the retirees than do comparable communities. Whereas Lexington is funding 75% or 85% other communities are offering 56% or less and for that reason it may not warrant any COLA base increase. Bob mentioned that the ERI appropriation of almost $500,000 that has been included in the Town's appropriation will become available next year and would like to see some of that money used for COLA increases. Whereas Social Security increases are on the entire Social Security benefit the COLA increases for pensions are capped at $12,000. The base has not been increased since 1998 when it went from the State to Local Option that allows the Board to determine COLA's each year. Of 397 retirees, 1/3's pensions are less than $12,000. The oldest retiree is 98 and the youngest is 18. 103 are 80 or older and of those 103, 29 are 90 or older. The decision to increase the COLA base will be left to Local Option. The Board determined it is too premature for a vote. Updated information will be sought from the actuary but it will not be available before this year's Town Meeting. The Board proposed a discussion with the Selectmen to plan for a presentation for next year's Town Meeting. Bob asked if the presentation has to be at the annual Town Meeting or if it can be brought forward at a special Town Meeting. PERAC will be contacted for a determination. Actuarial RFP finalists, Dan Sherman and Larry Stone made presentations before the Board. Both discussed their experience, technique, references, expertise and time frame for finished reports. All Board members are partial to Dan Sherman but have some concern about him being a one man show. After discussing the straightforward process of transitioning to another actuary if something should happen to Dan, Bob made a motion to hire Dan Sherman, Joe seconded it and