2016-05-26-RB-min - Laserfiche WebLink

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Minutes of the May 26, 2016 Retirement Board Meeting Present: Robert Cunha, Joe Foley, Fred Weiss, Marguerite Oliva, Alan Fields, Rob Addelson Bob Cunha called the meeting to order at 8:00 AM. NEW MEMBERS:(2)Deniele Pozz, Accounts Payable Associate; Patricia Daigle, School Finance Clerk DEATHS: None RETIREMENTS: Joanne Blondin, IA, 6/30/16; Kenneth Tremblay, Asst. Fire Chief, 6/24/16; Ann Griffith, Spec. Ed. Asst., 6/29/16; Donna Hooper, Chief Information Officer, 7/15/16 The Board accepted and signed the 052916 Warrant and May payroll. The April 2016 minutes were reviewed and approved as well as the cashbooks for March 2016. Karen Marchant tendered her resignation on May 9, 2016 indicating her last day would be May th 19. There was a discussion noting that her replacement would have to be hired at the 20 hour threshold for membership which will make him/her eligible for benefits. The ad will be placed on the PERAC website and will be e-mailed to other administrators with the hope of finding an individual who has Ch. 32 and PTG experience. Maggie discussed the possibility of decreasing her hours in the not too distant future. Dan Sherman presented the primary comparison results as of January 1, 2016. From 2014 to 2016 the active members increase 2.4%, retirees increase 2.6%, inactive members decreased by 1.4% and disabled members remained the same. The total payroll increased 4.9% and the average annual salary increased 2.4%. It appears members are leaving at a younger age and shorter service. Dan discussed the five year experience report he performed using eight systems. PERAC’s study is 15 years old and although Jim Lamenzo has said they would be doing a new study, it has yet to be done. Dan’s study shows that for both Group 1 and Group 4 members, the termination rate is much higher than expected and disability rates were lower than expected. Rates of retirement were greater than expected at younger ages and less than expected for older ages. Mortality rates for both groups were also higher than expected; Group 1 was 25% higher and Group 4 was 43% higher. Dan reported on funding alternatives using 7.75% and 7.5% assumptions. Using the current assumption of 7.75%, 2025 as the fully funded date and a $13,000 COLA base, the appropriation for FY’18 would increase to $5,972,757 from $5,505,537 for FY’17. If the funding schedule is increase to 2026, the appropriation would be $5,748,846. Looking at the same demographics but using 7.5% assumption, the amounts would be $6,893,911 and $6,500,566. Bob asked Dan to report on increasing the COLA base to $14,000. Dan’s thoughts on the “once a member issue” was that it has a negligible effect on the system. Steve presented the Meketa report. The portfolio increased in April to $137.2m with Hartford and Fiduciary Large Cap outperforming the benchmarks. Steve discussed the PRIT Real Estate holding noting that they had done well. There was a discussion of moving 5% to real estate.