HomeMy WebLinkAbout2010-04-21-RB-minMINUTES OF THE APRIL 21, 2010 RETIREMENT MEETING
Present: Robert Cunha, Joseph Foley, Rob Addelson, Michael McNabb, Marguerite Oliva
Absent: Alan Fields
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 043010 warrant and the April payroll. The March
minutes were reviewed and signed.
New Member: Bridget Roy, Student Support Instructor
Retirement: Barbara Stevens, Utility Enterprise Manager, 511110
Deceased Retirees: Regina Newell, Opt. A, March 17, 2010, School Lunch Program;
Catherine Spiers, Opt. A., April 6, 2010, School Lunch Program
Marguerite asked to address the Board regarding the I% pay increase that was granted
last month. After voicing her disappointment, she stated she knew that no COLA's were
being granted this year, but had hoped to receive at least a step increase of 2.5 %. Other
non -union employees were receiving their step increases of between 2.5% and 4.5% and
some were receiving longevity as well. Mentioned was the amount of counseling the
position entails as well as the amount of time spent dealing with all the investments, and
the active and retired members. Knowing that the Board is unsure of what the
administrator position entails, she stated she would be willing to bring manuals and
training material to a meeting and walk the Board through some of the aspects of the job.
The salary surveys that have been completed in the past have not aided the Board in
making a decision. The Board was asked to reconsider the increase and was told the
Board will take her request under advisement.
Fran Peters from Meketa presented the quarterly review. The Retirement System's
investment value at the end of March was $100.8 million, an increase of $3.1 million
since December 2009. Domestic equities outpaced international equities due in part to
the strengthening dollar. Commodities performed the worst, experiencing their first
quarterly decline in a year.
All sectors except telecom and utilities had positive returns for the quarter. During the
first quarter, the global economy continued to show signs of stabilization. There was
discussion of risk allocation versus asset allocation. The Board looks at asset allocation
knowing the system is measured on return. They must remain cognitive of asset
allocation vs. risk allocation.
Fran Peters had information on three International Equity Managers as possible
replacements for Acadian. The firm overview and terms for Artisan, First Eagle, Polaris
and Acadian are included in the report. Meketa feels the three proposed All Cap
managers offer attractive opportunities. Five -year returns are 8.2% for Artisan, 9.7% for
First Eagle, 4.3% for Polaris and 2.5% for Acadian. Fran Peters from Meketa stated they
still have confidence in Acadian. Further discussion was put on hold until Alan is
present.
The board had previously discussed adopting Meketa's review of the Asset Allocation
Policy (option B) which includes a 5% allocation to the PRIT hedge fund. Fran
mentioned that even making this choice does not mean there has to be any investment
made to PRIT, it just puts the availability in place. The board will continue to discuss the
issue at the next meeting.
Chris Lazzaro from Loomis presented a quarterly review. Lexington invested with
Loomis beginning in March 2010. The net return for the first quarter of 2010 was 4.7 %.
Loomis has $142 billion in assets under management of which $130 billion are in fixed
income. Market value at the end of March for the Retirement System was $5,399,635.
Loomis needs a 30 day notice for withdrawals and offer monthly liquidity on the 1" and
the 15 of each month.
Greg Balewicz from SSgA made a presentation. Monies that were held in the Passive
Bond SL Fund have been transferred to the Quality Trust Liquidating Trust III. These
funds are being transferred on a monthly basis to the NL Fund. 60% of Lexington's funds
have been transferred so far.
Reports are on file in the Retirement Office.
$300,000 was transferred from Acadian to State Street to cover April cash shortfalls. It is
anticipated there will be a shortfall of $626,000 for May.
The Vanguard balance for 3131110 was $872,426. The next allotment form the Town will
be released 10 days after the close of Town Meeting.
The MACRS Conference will be held in Hyannis from June 5 — June 9, 2010. The
weekend session will be a training session followed by the regular conference Monday
through Wednesday. Karen Marchant is signed up for the weekend session, Marguerite
Oliva, Bob Cunha and Joe Foley are signed up for the entire session and Mike McNabb
has signed up for one day. The Sheraton Hyannis has a new policy that as soon as
reservations are made, one night stay will be immediately charged to the Town credit card
used by the Retirement System. These charges will not be reimbursed to the Town until
after the conference.
PERAC Memo #17 regarding limits on post - retirement earnings was discussed. The
information will be forwarded to all department supervisors who should pass it on to any
retiree who continues to be employed after retirement. Hopefully the worksheets will
help to monitor the retirees and aid in enforcing the regulations regarding hourly and
post - retirement earnings restrictions. The statute clearly states the responsibility for
monitoring post - retirement earnings is placed upon the employer and the retiree. The
"Post - Retirement Earnings Worksheet" and instructions are available in the 2010 Memo
Section on PERAC's website.
There has been no response from PERAC regarding the over - earnings of Anthony
Previte.
Alan Campbell was reevaluated by PERAC and was found to be unable to perform the
essential duties of his position.
Mike Sacco will attend the May 25 meeting to discuss the possible changes in the
Lexington Retirement System membership requirements.
The Board voted to transfer 5% of domestic equity held in Contrafund and Hartford to the
Wellington Opportunistic Fund and the PIMCO Global Multi Asset Fund. The total held
in Domestic Equity is $28.6 million. 5% of the total domestic equity is $1,430,000.
Hartford holds 55% and Contrafund holds 45 %. Hartford's 55% equals $786,500 and
Contrafund,s 45% equals $643,500.
After a discussion of the expected cash shortfall for May, it was decided to hold $625,000
of the monies from Contrafund and Hartford in the State Street account and split the
balance of $805,000 equally between Wellington and PIMCO.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:45 AM.
The next meeting will be held May 25, 2010 at Cary Memorial Library in the Learning
Center.
Robert W. Cunha, Chairman
Robert Addelson, Ex Officio Member
Michael McNabb, Appointed Member
Joseph Foley, Elected Member
Alan Fields, Appointed Member