HomeMy WebLinkAbout2010-10-28-RB-minMINUTES OF THE OCTOBER 28, 2010 RETIREMENT MEETING
Present: Robert Cunha, Rob Addelson Alan Fields, Joe Foley, Mike McNabb,
Marguerite Oliva
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 102910 warrant and the October payroll. The
September minutes were reviewed and signed.
New Members: (7) Cynthia Cotarino, Katharine Jackson, Alexander Merrifield, Student
Support Instructors; Theodore McCormack, LHA Maintenance Supervisor; Dawn Belson,
Library Support; Caroline Nottingham, Instructional Assistant; Christine Severe, Police
Officer
Retirements: Philip Silva, DPW Highway Laborer, 10/29/10
Jason Chalmers and Patrick McCafferty presented the Acadian review. The portfolio has
increased 3.6% this year and has outperformed the benchmark. A large holding in BP
hurt the portfolio. A statement was issued at the time of the oil spill not to purchase
anymore BP stock but Acadian also decided initially not to sell as they were afraid of a
gut reaction. They currently still have a 1% holding. They participate more in small to
mid cap stocks and are at the limit of 7% held in emerging markets. Europe is seen as an
attractive market and Japan is less attractive. There report is on file.
There was a discussion of the possibility of selling Acadian and moving to a global multi -
asset manager or large cap international manager.
Meketa forwarded a copy of the September 30, 2010 interim update for the Board's
review. The 9130/10 market value is $104.2mm, up from $94.3mm on 6 /30 /10. The
underlying investment asset allocation indicates a 14% holding in emerging markets.
Alan wants to have Fran Peters report on which funds make up the 14 %. Other questions
to be asked are 1) in the aggregate, do we have capitalization bias relative to the
benchmark? 2) What was the market capitalization when Acadian was hired compared to
now? 3) Do the current international managers - Matthews, Artio and Acadian
compliment each other and 4) how have we done compared to PRIM and other systems?
There was a discussion of the mandated 8% assumption. The Board discussed having a
meeting and inviting Sen. Donnelly, Rep. Jay Kaufman, Peter Diamond, Nobel prize
winner, and David Driscoll from Buck. A request will be made to have Buck create some
funding schedules with assumptions of 7.5 %, 7% and 6.5% using a smoothing method
and extending the date out to when the unfunded liability would be retired.
A motion was made, seconded and approved unanimously to accept the revised actuarial
schedule dated 10/22/10 which is extended out to 2020.
The Board agreed to research the possibility of the Town issuing a pension obligation
bond. The objective would be to utilize the Town's excellent long -term borrowing rates
to lock in a low cost of capital. There was a reference to a 2 -3% rate over a 5 -7 year
period. The actual amount to be financed, the payback process and the impact to the
Town and tax payers funding obligation would need to be determined with the assistance
of our actuary. After the Board agreed to investigate it further, this possible funding
scenario would be researched by Rob Addelson and then followed up with discussions
with Buck Consultants.
The policy and regulation changes for membership and tutors were put on hold until the
next meeting as Rob did not have a chance to speak with Denise Casey and Bob Harris.
Beginning with the November payroll, the overearnings from Jim Weston will be
garnished. The entire amount of his pension other then the amount needed to cover his
health benefits will be withheld.
There still no response from PERAC regarding the 2005 overearnings of Anthony
Previte.
There was an e -mail from Atty. Peter Kober that the file can be closed on the
Creedon/Haynes matter.
PERAC notified the board that George Grundhoff s evaluation was completed and he still
is not able to perform the essential duties of his job. The next evaluation will be for
Norman Brule'.
The second quarter FY' l 1 appropriation of $929,637.25 was wired to State Street.
The OPEB Vanguard balance as of 9130110 is $1,403, 669.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:10 AM.
The next meeting will be held November 22, 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