HomeMy WebLinkAbout2012-09-27-RB-minMinutes of the September 27, 2012 Retirement Meetings
Present: Robert Cunha, Rob Addelson, Alan Fields, Joe Foley, Marguerite Oliva
Absent: Mike McNabb
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 92812 Warrant and September payroll. The August
minutes were reviewed and approved.
New Members: (26) , Laura Baker, Katie Brunelle, Nicole Sapienza, Student Support
Instructors; Alison Barnes, Lauren Dotola, Laura Marchese, Cara Stringer- Proulx,
Hastings Autism Support Assistants; Katherine Esposito, BCBA; James Athens, Elyse
Berberian, Anne Carlock, Tom Chandonnet, Sean Curran, Alexandra Doty, Meghan
Fitzgerald, Tracey Gallagher, Jaime Gaudet, Lucy Hackett, Maureen McCabe, Meghan
Mickle, Jose Oliveira, Janette Patel, SPED IA's; Lynne Shannon, Desk Top Support
Tech; Catherine Severance, Office Manager /Events Coordinator; Theresa James,
Department Assistant; Nicolas Burke, Laborer /Truck Driver
Retirements: Marie McDonnell, Office Manager, 9/14112
Deaths: John Delorey, May 31, 2012, Opt. B depleted
David Driscoll and Kai Petersen from Buck Consultants attended the meeting to discuss
the materials previously forwarded to the Board including a gain and loss analysis of the
unfunded liability from 111110 to 111/12; amortization schedules showing the total
appropriations needed to achieve full amortization of the unfunded liability in 2025,
2030, 2035 and 2040 under both 8% and 7.75% interest assumptions. All reports were
generated using a smoothing method taking in the major losses in 2008, keeping the
COLA base at $12,000 and utilizing the new mortality tables adopted by GASB.
Kai Petersen discussed a report on the projections of the distribution of expected returns
for the System's asset mix.
Town Manager, Carl Valente, attended the meeting and questioned if there are any
PERAC restrictions that would prevent the Town from making a supplemental
appropriation to the System. David noted that PERAC would readily accept additional
funds.
Rob requested David rerun the reports assuming the Town adds $1 mm to the FYI 3
Appropriation and holding the increase to the Town to $600,000 from FY' 13 to FY' 14
and FY' 14 to FY' 15.
Rob also asked who would bear the financial statement responsibility reflecting the
GASB changes. The auditors will need more information compiled and disclosed
including the assumed rate of return on individual classes of investments. The new
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.
The Board discussed Karen's request to have her hours increased to 20, making her
eligible for benefits. Maggie mentioned that even though she could keep Karen busy for
two extra hours, it is not warranted.. Karen has indicated she only wants dental insurance
and does not need medical insurance, but the Board chose not to grant her request at this
time because of the possibility of her requesting medical insurance and mentioned the
cost to the system. It was decided that Karen's future reviews would be done on her
anniversary date each March and she would also be granted COLA's on July 1 if the
Town employees are granted one. During her performance review in March 2013, the
Board will revisit her request to increase her hours.
Maggie's review was put on hold for further review by Rob.
A motion made, second and approved unanimously to adjourn regular meeting at 10:20.
The next meeting will be held October 27, 2012, 8:00 AM at Cary Memorial Library.
Absent
Robert W. Cunha, Chairman
Robert Addelson, Ex Officio Member
Michael McNabb, Appointed Member
Joseph Foley, Elected Member
Alan Fields, Appointed Member