HomeMy WebLinkAbout2013-11-21-RB-minMinutes of the November 21, 2013 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Rob Addelson, Alan Fields, Mike McNabb, Marguerite Oliva,
Karen Marchant
Bob Cunha called the meeting to order at 8:00 AM.
The Board accepted and signed the 112913 Warrant and November payroll. The October minutes
were reviewed and approved as well as the cashbooks for September 2013.
NEW MEMBERS: (10) William Allen, Custodian; Kerry Benshoff, Sheryle Rogato, SPED IA;
Asako Burr, Library Desk Attendant; Michael Alexander, Matthew O'Leary, Arborist; Sacha
Clavell, School Payroll Specialist; Christopher David, Kathleen Hohler, Field Tech Maintenance
Associate; Annie Turner, BCBA; Jenna Loconte, SSI
RETIREMENTS: JoAnne Waller, Instructional Asst., 12131113; Edwin Kendall, DPW Laborer,
113114
The Board questioned Monroe Capital's calls and distribution process. Henry was asked to
contact the plan administrator to determine the reason the calls were made rapidly for the entire
commitment of $6,000,000, why a disbursement of $3,127,321 was made and why another call
was received for $795,756 a month later. Meketa will monitor the situation and try to resolve it
and report back to the Board.
The Board discussed the possibility of increasing the COLA base. The two year old Buck study
that shows the cost of the increases at that time was reviewed. The latest "Voice of the Retired
Public Employee" report shows that 52 communities have accepted a new COLA base ranging
from $13,000 - $18,000. Rob mentioned that Town Manager Carl Valente stated that Lexington
offers richer health plans to the retirees than do comparable communities. Whereas Lexington is
funding 75% or 85% other communities are offering 56% or less and for that reason it may not
warrant any COLA base increase.
Bob mentioned that the ERI appropriation of almost $500,000 that has been included in the
Town's appropriation will become available next year and would like to see some of that money
used for COLA increases. Whereas Social Security increases are on the entire Social Security
benefit the COLA increases for pensions are capped at $12,000. The base has not been increased
since 1998 when it went from the State to Local Option that allows the Board to determine
COLA's each year. Of 397 retirees, 1/3's pensions are less than $12,000. The oldest retiree is 98
and the youngest is 18. 103 are 80 or older and of those 103, 29 are 90 or older. The decision to
increase the COLA base will be left to Local Option. The Board determined it is too premature
for a vote. Updated information will be sought from the actuary but it will not be available before
this year's Town Meeting. The Board proposed a discussion with the Selectmen to plan for a
presentation for next year's Town Meeting. Bob asked if the presentation has to be at the annual
Town Meeting or if it can be brought forward at a special Town Meeting. PERAC will be
contacted for a determination.
Actuarial RFP finalists, Dan Sherman and Larry Stone made presentations before the Board.
Both discussed their experience, technique, references, expertise and time frame for finished
reports. All Board members are partial to Dan Sherman but have some concern about him being
a one man show. After discussing the straightforward process of transitioning to another actuary
if something should happen to Dan, Bob made a motion to hire Dan Sherman, Joe seconded it and
it was voted unanimously. Joe stated that he thinks Dan will be an asset for the Board. Dan
Sherman will be contacted to see if the COLA base increase study is included in the pricing
proposal or if it will be a separate fee.
LouAnn Eisenhut, Henry Jaung and Shawn Bowen from Meketa were present for an update. The
fund as of 10/31/13 was $128.6 mm, increased from $124 mm. Alan and Mike are concerned
about the continuing poor performance of the PIMCO Global Multi Asset Fund. Meketa
attributes the underperformance to the emerging market equities holdings. Global Multi Asset
and Hartford are the largest investments in the portfolio at 13% each. Alan feels the exposure to
Global Multi Asset should be reduced whereas Henry feels it is not the time to liquidate the fund.
Meketa agrees with the premise held by PIMCO. Mike stated his disappointment with the
performance but feels it is not just the portfolio but the management that has failed.
Mike mentioned transferring the funds to Vanguard Wellington and was told by LouAnn that the
account is closed to new investors. The Board was reminded that there will have to be a search
for any new investment. Mike will contact Vanguard concerning investing in the Vanguard
Wellington Fund or a similar fund and determine if Vanguard would respond to an RFP.
Mcketa will contact Wellington to see if they have a commingled fund that corresponds to the
Vanguard Wellington Fund. Meketa will also follow up with Fiduciary Management about
funding a commingled fund. LouAnn will check to see if the funds can be moved without having
to undertake a search if the funds are transferred to an investment company that the Board already
has hired.
A motion was made by Alan to move $1 Omm from PIMCO Global Multi Asset, seconded by
Mike and unanimously approved. $5 mm will be transferred to RhumbLine, $4 mm to Loomis
Sayles, and $1 mm to Matthews.
Annual reviews are set for Beacon and Matthews for the 12/19/13 board meeting.
Memo # 24 regarding Board Member Training was provided to the Board.
A reminder was given to any Board member who hasn't completed the Ethics Test yet.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:45.
The next meeting will be held December 19, 2013, 5:00 AM at Cary Memorial Library in the
Learning Center.
Robert W. Cunha, Chairman
Michael McNabb, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Alan Fields, Appointed Member