HomeMy WebLinkAbout2009-06-25-RB-minMINUTES OF THE JUNE 25, 2009 RETIREMENT MEETING
Present: Robert Cunha, Joseph Foley, Michael McNabb, Rob Addelson, Marguerite Oliva
Absent: Alan Fields
Bob Cunha called the meeting to order at 8:00.
The Board accepted and signed the 063009 warrant and the June payroll.
New Members: Carrie Johnson, Senior Service Asst. Director
Request for Retirement: (3) Elaine McBride, School Aide, 811109; Ann Marie
Cuccinello, School Sec., 6/26109; Gloria Foster, School Aide, 9/18/09
Deceased Retirees: Robert E. Walton, Fire Lt., Opt. B depleted, 619109
LouAnn Eisenhut and Fran Peters from Meketa Investment Group presented the interim
update for 5/31109. Market value is $86.1mm with an increase of 8.3% for the year.
They presented a report on Global Tactical Asset Allocation. Discussed was the
Wellington Opportunistic Funds and the Wellington Diversified Inflation Hedge Fund
and also the PIMCO All Asset Fund and PIMCO Multi -Asset Fund. There are over-
lapping strategies. Meketa will check to see if either new fund could be added to the
portfolio with just a letter to PERAC. Meketa will put together a request to PERAC and
if required, will do a quick RFP.
Next was the Earnest Partners Mid -Cap update. Market value is now $2.8mm.
Lexington Retirement has been invested with them since 2005. Meketa still feels they
are a decent and solid company. They are ranked in the top third Mid-cap space. They
could be used for future funding.
There was a review of the Opportunistic Credit Manager search. Meketa reported on
Loomis Sayles from Boston which is focused on corporate credit and Seix Advisory from
Upper Saddle River, NJ who is a more conservative bond manager. Fran Peters
mentioned that credit opportunities are a little less attractive today because the yields
have fallen.
Mike discussed the need for more fixed income exposure which is currently at 6% in the
portfolio. The choice to move to Credit Opportunities is still on the table.
There was a discussion of moving into PRIT for hedge fund exposure. There would be a
maximum 10% exposure allowed.
The Town of Lexington has appropriated $440,000 for Post Retirement Health and will
be sent to Vanguard in July.
The signature letter for Matthews International Capital was signed by the Board.
The physician for Robert Staples, who has applied for an ordinary disability retirement, is
requesting payment of $50 before she will release the medical records. The Board
determined that the Lexington Retirement System will pay the fee this time. The requests
for payments for release of medical records will be decided on a case by case basis.
There was a general discussion of PERAC memo 424, 2009 regarding Chapter 21 of the
Acts of 2009, Pension Reform. Michael Sacco is forwarding e -mails to his clients in
response to questions as they arise. No contracts have been ratified for Lexington
employees so there will not be any changes at the present time. Rob Addelson, Laurie
Dell'olio, Town Accountant and Marguerite have been meeting to discuss the issues that
could arise in the future.
The estimated 2009 budget was presented to the Board.
The reviews for Marguerite and Karen have been put on hold. The Board is waiting to
see if any pay increases will be granted for FY' 10.
A motion was made, seconded and approved unanimously to adjourn the meeting at
10:00 AM. The next meeting will be held July 23, 2009 at Cary Memorial Library.
Robert W. Cunha, Chairman
Robert Addelson, Ex Officio Member
Michael McNabb, Appointed Member
Joseph Foley, Elected Member
Alan Fields, Appointed Member