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HomeMy WebLinkAbout2009-12-21-RB-minMINUTES OF THE DECEMBER 21, 2009 RETIREMENT MEETING Present: Robert Cunha, Joseph Foley, Michael McNabb, Alan Fields, Rob Addelson, Marguerite Oliva Bob Cunha called the meeting to order at 8:00. The Board accepted and signed the 123109 warrant and the December payroll. The October and November minutes were reviewed and signed. New members: (1) Christopher Bouchard, Custodian Request for Retirement: Carmela Bumbaca, Aide, 11/30/09; James Fogg, DPW Foreman, 1/8/10 Deceased Retirees: Dorothea Russo, School Secretary, 12/1/09, Opt. B; Edward O'Brien, Police Sergeant, 12/16/09, Opt. C A hearing was requested by Anthony Previte regarding notification of excess earnings. Anthony Previte, Anthony's accountant, James O'Neal, and Atty. Michael Sacco were present for the meeting. Although there were several issues, the main issue is the settlement for a contract dispute in the amount of $31,000. Five years prior to the settlement, a corporation was dissolved and the contract was in dispute. Mr. O'Brien stated that the settlement was an intangible asset and should not be regarded as income. Anthony was asked to provide copies of the pleadings and settlement agreement. Other issues mentioned revolved around a sub - chapter 5 corporation. Mr. O'Neil cited the case of Boston Retirement Board vs. CRAB. This went before the Mass. Superior Court for a ruling on PERAC's definition of earnings and compensation. There is an issue with the Schedule C filed by Anthony Previte. It relates to a piece of real estate sold two or three years ago. Anthony took back the mortgage and only received interest. Interest income does not have to be reported on Schedule C, it can be reported on Schedule A. Mr. O'Brien mentioned the possibility of filing an amended return. Atty. Sacco asked Mr. O'Neil to provide documentation that the payment was interest rather then earnings. At 9:30 the hearing was suspended until receipt of the requested documents. These are to be received within 30 days. Michael Sacco was asked about the Creedon Summary Judgment. He feels it will probably be dismissed. There is a DALA hearing for the Soares case set for January. Gail Soares is asking that her benefit be recalculated as if John were a Group 2 member when he worked as a dispatcher. Mike Sacco will attend. Greg Balewicz and David Zielinski presented the SSgA review. As of November 30, 2009 the balance in SSgA is $2,226,805 held in the Passive Bond Market NL Fund and Quality Trust Liquidating Trust III. They presented their strategy review which seeks to match index total returns while providing a diversified exposure to the major sectors of the US bond market. The US Aggregate Bond Index composite mirrors that of Barclays Capital Aggregate Bond Index both in market value by sector and by quality. The report is on file in the retirement office. Fran Peters and LouAnn Eisenhut presented the November 30, 2009 Interim Report. The portfolio has increased almost 24% and market value as of November 30 was $97.7 mm. During December, Earnest Partners was liquidated and funds were transferred to the PIMCO Global Multi Asset Fund. On January 4, 2010, 51.4mm will be transferred from the Wellington Opportunistic Fund to the PIMCO Global Multi Asset Fund. The largest portfolio overweight is the Global Tactical Assets made up of Wellington Opportunistic Investment and PIMCO Global Multi - Asset. This will be reviewed in 2010. Meketa presented a PRIT Hedge Fund portfolio overview. It was noted PRIT has captured less performance in up markets but protected more in down markets compared to the indices. Board members requested a drilling down to show what is actually held and a pie chart showing the real standard deviation. At the next meeting the Board would like to look at Wellington Opportunistic Fund since that is the largest holding and would like Meketa to report on the PRIT Hedge Performance for 2009. Reports are on file. A suggestion was made that a report should be made to the Selectmen showing the excellent portfolio performance experienced in 2009. The Board reviewed the Medical Panel Certificate for Robert Staples. A motion was made, seconded and approved unanimously to grant the Ordinary Disability retirement. The move of some of the Vanguard Funds for OPEB to a mutual fund from the money market funds was put on hold until the next meeting. Michael McNabb had to leave before the discussion and his input is needed for the choice of funds. A motion was made, seconded and approved unanimously to grant the buyback request from Mary Ann McCall - Taylor for her service with Lexington prior to her membership in the Lexington Retirement System. There was a discussion of the COLA for FY' 11 and a motion was made, seconded and approved unanimously to grant a 3% COLA starting July 1, 2010. Retiree John MacKenzie informed the retirement office that he may be facing a legal matter that could result in his being incarcerated. He questioned what will happen to his pension. Barbara Phillips at PERAC was contacted and discussed section 15. The Board would need to have John's lawyer send information to the Board regarding the crime and the Board would need to make the determination. If it does not involve the governmental unit or system and there is no violation of the laws applicable to his office or position then there is no forfeiture. John will be asked to keep the retirement office updated. It was noted that there are now ten investment managers that the Board will need to meet with during 2010. Fidelity will be asked to attend the January meeting. Administrative review put on hold again. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:45 AM. The next meeting will be held January 28, 2009 in the Lexington Town Hall in Room 111. Robert W. Cunha, Chairman Michael McNabb, Appointed Member Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Alan Fields, Appointed Member