Loading...
HomeMy WebLinkAbout2021-09-30-RB-min Minutes of the September 30, 2021 Retirement Board meeting: Present: Robert Cunha,Joseph Foley,Alan Fields, Fred Weiss, Carolyn Kosnoff&Jim Condon Absent: Marguerite Oliva NEW MEMBERS: (18) Christina Cusato, Student Support; Lily Delgado, Admin. Asst; Gina Mistretta, Bella Khachatourian, Whitney Pierre, Sara Tibur, Support Instructional Assts; John Cuccinello, Mojgan Peykazadi, Mary Fathi,Ngoc Do, Haydn Kilty, Shilpi Kalam, Instructional Assts; Helen Lui, Program Manager; Heather Maganzini, Library Tech; Trevor Jones, Robert Swasey, Firefighters; Joanne Belanger, Public Health Director; Dennahe Adley, Dispatcher RETIREMENTS: None DEATHS: None The Lexington Retirement Board met remotely through Zoom tele-conferencing during the Covid-19 Pandemic. The Town Clerks Office posted the meeting,which included the information for any interested party to join the call. All Board members were present for this meeting. Chairman Robert Cunha called the meeting to order at 8:30 am. The Board accepted the 093021 Warrant and the September payroll. The August minutes and July financials were reviewed and approved. Robert Cunha reviewed the September agenda with all Board members and staff in attendance. It was noted we received two (2) distributions from White Oak in the amounts of$63,654.00 and $29,302.00 The Monroe call of$2,838,672.00 was processed on September 28, 2021, while the Golub 14 first call of $1,250,000.00 will be processed on October 1, 2021. The Board has not received any new information regarding the Joseph O'Leary or Robert Magarian matters. Robert Staples had filed his paperwork to PERAC regarding his 91A status on 8/23/21. PERAC had advised him he failed to provide a copy of his W-2 Form. Jim Condon has been in touch with both PERAC and Mr. Staples regarding this matter. Jim was informed by Mr. Staples on 9/29/21 that he was faxing the W-2 Form to Sandra King at PERAC for review immediately. This matter will require further review upon PERAC's findings. Jim will reach out to both parties in a few weeks for an update. Jason Morey submitted a request to the Lexington Retirement Board on 09/28/2021 for a hearing regarding overearnings in 2020. This stems from PERAC's findings in which Mr. Morey exceeded the earnings limit by$33,872.43 based on the 91A forms and tax filings submitted to PERAC. Mr. Morey has been advised to submit new information to the Lexington Retirement Board for review. No action to be taken at the present time. The Stone Consulting firm will require a payment of$1,500.00 for our requested COLA study. The Board was under the notion a study was included in the contract. Robert Cunha made a motion to approve the $1,500.00 payment,which was seconded by Joseph Foley, and unanimously approved by Carolyn Kosnoff,Alan Fields and Fred Weiss. Stephen MacLellan and Henry Jaung presented the Meketa update at 8:45 am. The portfolio balance as of August 31, 2021 is$229,007,485.00, up$4.89m from the prior month. Despite a strong month on the books, it was noted that the International Equity Asset class is on the downturn. RE in China is the main issue. There are problems with debt payments being made. Many are going unpaid. This is leading to a volatile situation overseas and it will only get worse with time. The problem is, nobody is sure how much worse this will get. Hong Kong is starting to feel the debt crunch at this moment. Stephen noted that our cash holding of 9%will be going down to 7%. Some of that cash has been redeployed to other investment buckets since the Asset summary for our system was posted. He mentioned our portfolio was up 1.9%for August and 2.4%for QTD. Overall,the portfolio has performed well for the past twelve (12) months; posting 21.9%. Our returns are strong, and we should continue with the strategy that is currently laid out. We are performing just as well as the PRIT fund to date. Meketa concluded their presentation at 9:05 am. Colin Edgar from Stone Consulting, Inc. entered the meeting for discussion at 9:10 am to review the funding schedule for the Lexington Retirement Board. He summarized his preliminary overview and results of the scheduling. The main focus was based on the number of years we want to go out. The years 2028—2030 were the focal point. Discount rates between 7.15% up to 7.50%were also presented and showed increases between $750K to $950K. Colin and the Board were in agreement to not fund out past year 2030. Colin mentioned there are consequences involved if we go further than 2030. Ch.32 sec.22F would now factor into FY contributions, something to avoid. To sum up,the Board requested to see two (2) more projections with various rates and COLA's built in. 15K would be the amount. Colin hopes to have these prepared by October 14, 2021. Final thoughts on the presentation were the Board feels comfortable with the 7 year schedule at 7.25%with $850k increases. It would provide some wiggle room at the end of the schedule. Colin Edgar concluded the presentation at 10:30 am. Robert Cunha motioned to adjourn the meeting at 10:35 am,which was seconded by Fred Weiss, and unanimously approved by Joseph Foley,Alan Fields, and Carolyn Kosnoff. The next Retirement Board meeting will be held via Zoom on Thursday, October 28, 2021 at 8:30 am. Francesco Daniele and Emily Green from the PRIM Board are expected to present at 9:00 am. Future Board meeting dates will be held on 11/22/21 and 12/20/21, both dates are Monday's. Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member Frederick Weiss, Appointed Member