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HomeMy WebLinkAbout2012-04-26-RB-minMinutes of the March 26 and April 26, 2012 Retirement Meetings The March 26 meeting was cancelled due to the lack of a quorum. The agenda was forwarded to all the Board members for approval of the 3/30/12 payroll and payables warrants. Each Board member made notification of their approval and came to the office review the paperwork and to sign the documents. All other items on the agenda were postponed until the April meeting. Minutes of the April 26, 2012 Retirement Meeting. Present: Robert Cunha, Rob Addelson, Joe Foley, Alan Fields, Michael McNabb, Marguerite Oliva, Karen Machant Bob Cunha called the meeting to order at 8:00 AM. The Board accepted and signed the 4/30/12 Warrant and April payroll. The February and March minutes were reviewed and signed. New Members: (5) Mary Segars, Holly Lonergan, IA, Thomas Corazzini, Dispatcher; Kerry Daley, Admin. Asst., Ryan Lennon, Veteran Services Officer Retirements: (2) Sandra Hart, Financial Clerk, 6/30/12; Linda Labourene, Sped. Ed. Tutor, 6/3 0/12 Deceased: (2) Theodore Setterlund, Firefighter, ADR Apt, A, 3/7/12; David. Jones, (Active Member), Custodian, 3/19/12 LouAnn Eisenhut and Henry Jaung attended the meeting to present the March 31, 2012 Quarterly Review. It was a very strong quarter with the Retirement System valued at $111.7 million on March 31 an increase of $9.4 million from December 31 The Retirement System returned 9.3% for the quarter, as all asset classes produced positive returns. The largest return was domestic equities with again of 16.1 %. International equities were up 11.2 %, Global Tactical Assets were up 7.3 %, Real Return assets were up 6.2% and the aggregate fixed income investments were up 3.5% with Loomis Sayles Credit Asset returning 5.1 %. Most of the other funds outperformed their benchmarks except Matthews Pacific Tiger Fund which returned 10.9% vs. MSCI AC Asia Pacific return of 12.2 %. The fund was hurt by it underweight to industrials. The Board reviewed the top holdings of the domestic equity managers Fidelity Contrafund and Hartford Capital Appreciation Fund and noted the top holdings for each were entirely different which contributed to domestic equity having the largest return for the quarter. Hartford was the System's best performer with a gain of 16.7% driven by security selection in the consumer discretionary, financials, and industrials sectors. Mike voiced his concern of using PIMCO All Asset Fund to fund the new Wellington Enduring Asset Fund. There was also a discussion of investing in the CIF or the CTF for the Wellington investment. Lexington Retirement would be the first investor in the CIF and the Board is concerned that the $5,000,000 investment would not be large enough for the fund to be run the same as the other funds. The Board voiced an interest in investing in the CTF. LouAnn said she would contact Scott Brink to discuss the matter. In an e -mail that followed after the meeting, LouAnn said that Scott informed her that for this particular strategy, the Board could only invest in the CIF commingled fund for Enduring Assets. The fund has $5,000,000 in it and the Lexington investment will bring it up to $10,000,000. Scott assured LouAnn that this is enough to run the fund identically to the other funds. Alan's reply was that because we are dealing with the integrity of the firm he is OK with this. "Enduring Assets hopefully will reduce the volatility of the portfolio. If it accomplishes its objective it will add value." Information has been sent to David Driscoll at Buck to begin the 1/1/12 Actuarial Review, The Board would like him to look at assumption rates to be included in the report. If the assumption rate is dropped, the Town's appropriation will have to increase. David will be asked to run a report to see the impact of dropping the assumption 1 /4 of a point. After he notifies the Retirement staff that the actuarial report is completed, he will be asked to attend a Board meeting to present his findings. Noting an erosion of assets, the Board would like to see a report showing 3 year and 5 year earnings vs. amounts paid out. There was a discussion of the Statement of Financial Interest forms that need to be completed by the Board members and returned to PERAC no later then May 1, 2012. All the Board members After indicating that they were "progressing " each of the Board members indicated they will send their forms to PERAC. Survivor Benefits request for Laura Jones, widow of David Jones, was unanimously accepted. The Board discussed PERAC memo 914/2012 regarding s. 12(2) (d) increase in benefits from $250 per month to $500. Since no retiree would have been affected by the change when the memo was received, no .article was reserved for the present Town Meeting. Realizing that Laura Jones would have been affected, there will be a request to reserve an article for the next Town Meeting. The Board reviewed the buyback requests from Linda Judkins and Blair Ruocco. Linda is requesting to buyback her service when she was first hired by the Town, but was not eligible to be a member of the retirement system. Blair is requesting to redeposit funds from her former employment in Lexington which she withdrew in 1990. A motion was made by Bob, seconded by Joe and unanimously accepted to allow both the buyback and redeposit of fiends. Notification was received from PERAC that Accidental Disability Retiree Tamzin Whiting Ladd will be reevaluated. The FY' 12 0' quarter appropriation for $1,000,887.25 was wired to State Street. The Vanguard balance for OPEB was $2,188,195 on March 31, 2012. Karen requested an increase to 20 hours per week to allow her to be eligible for benefits and discussed her need for a salary increase. She stated she feels she is still at about the same level as she was when she was hired five years ago. Her request was taken under advisement. The Board wants to work with a compensation consultant again before determining any salary increase for Maggie. Bob has spoken with Denise to determine whom the Town is using on behalf of the active members. The question of salary increases was postponed until the May meeting. Representatives from Acadian and Hartford will be asked to attend the May meeting for reviews. The Board was reminded that the State Ethics training is still needed by some board members. The next meeting will be held May 31, 2012, 8:00 AM at Cary Memorial Library in the Learning Center A motion was made, seconded and approved unanimously to adjourn the meeting at 9:35 AM. Robert W. Cunha, Chairman Michael McNabb, Appointed Member Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Alan Fields, Appointed Member