HomeMy WebLinkAbout2014-09-30-RB-minMinutes of the September 30, 2014 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joe Foley, Rob Addelson, Marguerite Oliva and Karen Marchant
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (47) Petra Lesbirel, Field Technician; Aaron Jones, Vincent Fiamma, Lisa Tanner,
Janelle Finn, Danielle Donigan, SSI; Ryan Chaar, Dawn Brundige, Katherine Hart, Karen Mann, Derek
Kelly, Barbara Eliason, Adalgisa Carmona, IA; Kelsey Simard, Kelly Anderson, Lauren Coffey, Emily
Whalen, Stephanie Kozak, Ariana DellaGatta, Laura Conroy, Allison Aubry, Sophia Leone, Kristin
Cahoon, Elizabeth Lebherz, Brinee Martin, Olivia Spinney, Angelia Jack, Joseph Hunt, Nia Levels,
Joshua Keehn, SPED IA; James McGovern, Ethan Gaston, Robert Furrier, Bridget Burns, Bart
Thompson, SCTA; Lauren Riccardi, Elise Piracha, Shannon Gallagher, Chad Castro, ASA; Steven
Moody, Robert Erickson, Douglas Porter Custodian; Michelle Antinarelli, O &M Specialist; Judith
Foster, BCBA; William Grogan, Kristina Hankins, Police Officer; Juliet Brown, Metco Secretary;
RETIREMENTS: Karen Boodakian, School Admin. Asst.; 10/31/14
DECEASED: Gary Ganley, DPW Parks Chief, 9/7/14; Walter McDonald, School Custodian, 9/4/14;
Eunice Schaeffer, School Secretary, 9/13/14
The Board accepted and signed the 0930114 Warrant and September payroll. The August minutes were
reviewed and approved as well as the cashbooks for July 2014.
Lexington's Town Manager Carl Valente was present to discuss the proposed funding schedule and
COLA increase. He agrees that a 5% annual increase to the appropriation is within the budget. He
disagrees with increasing the COLA base and presented a spreadsheet of retiree health insurance analysis
and how Lexington compares to other communities. When reviewing the total benefits for retirees which
includes the Town's share of health benefits, Carl feels Lexington is well above the other communities.
Lexington budgets 80% of the health care premium compared to the average of 66.4 %.
Henry Jaung and Steve MacLellan from Meketa presented the interim update. As of August 31, 2014 the
market value is $140.2 mil up from $137.5 mil as ofJuly 31, 2014. Most asset classes have done better
than the benchmark with performance at 7.7% YTD. There was a discussion about the market and the
notification that Bill Gross has resigned from PIMCO. Henry feels that it is not crucial to find an
alternative for the PIMCO All Asset Fund but will start searching for other options and present the
findings at the next meeting. Hedge funds will bridge the gap and become increasingly important with
volatility in the market and will not outperform equity. In keeping with the 10% exposure in hedge funds
there was a motion by Alan, seconded by Bob and voted unanimously to move $600,000 from PIMCO to
PRIT.
Meketa also presented a Real Estate and Direct Lending Review and provided 2 possible candidates for
each. It was decided that Meketa will do an RFP search for both and will also put together an asset
summary analysis committing $7 -10 million from possibly Loomis and Monroe.
Susan Grivas from Matthews Asia was present for the annual review. She gave an overview of the fund
including the present investment team, valuations, key factors, portfolio characteristics and allocations
and reported competitive returns at 10.48% YTD.
A discussion of the funding and COLA schedules followed. The Board extended the funding date for two
prior actuarial studies and Bob would like to go back to a 2025 funding schedule including a 5% annual
increase to the Town. All in agreement. The Board discussed the COLA base. Lexington Teacher
retirees have a $13,000 base and to be equitable Bob would like to raise the base for the Town retirees to
$13,000. Joe and Alan agreed. Rob agreed with the Town Manager that total compensation already
exceeds comparable communities. A motion was made to raise the COLA base to $13,000 by Bob and
seconded by Joe. Alan voted for the increase and Rob voted against. Another motion was made by Bob,
seconded by Alan and voted 3 -1 with Rob voting no to accepting the 2025 funding schedule that includes
the annual increase of $250,000 and the COLA base increase to $13,000. Two articles will be reserved
for Town Meeting.
Regarding "once a member always a member" Mike Sacco reported there is pending litigation and we
should maintain the application until the legal process concludes.
Mike McNabb's resignation letter has been received. The selectmen have been notified and are trying to
find someone with a similar profile to fill the position.
An ADR application has been received by Mark Culleton and forwarded to Mike Sacco for an opinion.
After reviewing his opinion which states the reasons why the application should be disallowed, there was
a motion by Bob, seconded by Joe and voted unanimously to deny the application. Mike Sacco will be
asked to send a denial letter to Mark.
The Board was reminded about the PERAC meeting that will be held at the Town Hall tonight 7 -9, Memo
#22 & 23/2014 Board Member Training and the Ethics test.
The annual meeting for FMI & PIMCO will be heal on October 22nd and PRIM will be held on
December 22nd
The election for Joe's position was posted on September 19th and if nomination papers are received by
more than one candidate, the election will be held December 18th. Nomination papers are due back by
November 3rd
The Board discussed the Administrator annual review.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:00.
The next meeting will be held October 22, 2014, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member