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HomeMy WebLinkAbout2015-11-19-RB-minMinutes of the November 19, 2015 Retirement Board Meeting Present: Robert Cunha, Alan Fields, Rob Addelson, Fred Weiss, Marguerite Oliva, and Karen Marchant Absent: Joe Foley Bob Cunha called the meeting to order at 8:00 AM. NEW MEMBERS: (11) Eric Carusi, Clare Rose Collar, Padraig Daly, Firefighters /Paramedics; Ashley Bratsis, Stacey Castillo, SSI; Kimberely Chamberlain, SSP; David D'Elia, SPED IA; Jason Power, Park Laborer; Caileen Foley, LHA Executive Director; Ana McDonough, Administrative Assistant; Michael Reault, Data Coordinator DEATHS: Edith Cain, Survivor of Darrell Cain, 11/13/15; Alice Bevington, School Secretary, 11/14/15 RETIREMENTS; John Hilton, Library Clerk, 12/4/15; Joan Taratuta, Acct. Manager, 1/4/16 The Board accepted and signed the 112715 Warrant and November payroll. The October 2015 minutes were reviewed and approved as well as the cashbooks for September 2015. There was a discussion of moving the OPEB funds that are now held in the Vanguard Wellington Fund to the PRIT Fund. Henry did some research and found that the Vanguard Fund has done better than the PRIT Core Fund. The five year return for Vanguard is 9.5% and 8.3% for PRIT and the fee is 26 basis points. Henry suggested keeping the OPEB fund with the Vanguard Wellington Fund since it is cheaper and has better returns. The Vanguard fund is a conservative US balanced fund with 65% stocks and 35% bonds. The Town wired $299,188 to the fund on 11/3 and has proposed adding an additional $1.2m next year. The overall liability is $180m. The Board agreed to stay with Vanguard. There was a discussion of the PTG Employee Self Service module. Rob had some concern of how many members and retirees would utilize it. Bob mentioned contracting with PTG for a year and at the end of the year to determine whether to keep it or not. A motion was made by Rob, seconded by Bob and voted unanimously to contract for one year. A buyback request was received from Karen Edwards for the two years of service she was employed part -time in the Senior Center. During those two years, she also filled in for Lexpress and Community Development. She is now working at the Fire Department. A motion was made by Bob, seconded by Fred and approved unanimously to accept her request. The "once a member, always a member" issue was discussed. The Board discussed the increased liability. Therefore, it was determined that a policy should be set up that would prevent anyone who falls below the 20 hours per week from remaining as a member in the system. The policy would take place July 1, 2016 and would grandfather current members. Maggie mentioned that the HR departments would have to make sure hourly reductions are reported on a timely basis. Rob asked Maggie to set up a meeting with Laurie, Rob and her to see if there is a way for MUNIS to track hours. Bob requested that an article be reserved for the annual Town Meeting in case it is needed. Steve MacLellan and Henry Jaung from Meketa presented the interim October report. Losses in September were mostly regained in October. The balance for 10/31/15 was $138.5m, up from $132.5 at the end of September. The increase for October was 4.7 %. Every asset class outperformed the 10 year benchmark. Henry mentioned that there should be no further commitment to private debt. He said that investors now seem to be reluctant to invest further in private debt but did not seem sure of the reason. Meketa presented the aggregate asset summary and discussed the portfolio roster and the 20 year annualized return chart. Alan discussed the difficulty in earning the 7.75% assumption and suggested that when the next actuarial study is done for 111116 that Dan Sherman be asked to include a report of decreasing the assumption to 7.5 %. The Board reviewed the draft of the new Investment Policy Statement that Meketa produced. Fred made a motion to adopt the drafted version, seconded by Bob and approved unanimously. The Town wired $299,188 to the Vanguard OPEB fund on November 3`d. The current balance is $6,521,445. There was a Monroe distribution on November 18 for $112,571. The Board was reminded of the 4th quarter training memo. A motion was made, seconded and approved unanimously to adjourn the meeting at 10:15. The next meeting will be held December 22, 2015, 8:00 AM at Cary Memorial Library. Robert Cunha, Chairman Alan Fields, Appointed Member Absent Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member