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HomeMy WebLinkAbout2021-12-20-RB-min RECEIVED 022 28 Jain, 8A, ain't TOWN CLERK Minutes of the December 20, 2021 Retirement Board meeting: LEXINGTON M Present: Robert Cunha,Joseph Foley, Alan Fields, Fred Weiss, Carolyn Kosnoff, Marguerite Oliva and Jim Condon Absent: 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 123121 Warrant and the December payroll. The November minutes and October financials were reviewed and approved. Robert Cunha reviewed the December agenda with all Board members and staff in attendance. It was noted we received a Monroe distribution of$39,957.00 on 11/24/21. A Monroe call occurred 12/21/21 for$1,183,203.00. The Vanguard balance as of Sept. 30, 2021 was $24,116,714.02. It was noted the funding schedule for the Lexington Retirement System was approved by PERAC at the 7.25% assumption rate. The Board was advised to monitor this rate going forward. PERAC feels it might be too high at this time. The Board has no new update with the O'Leary case. Members of the Board were emailed a copy of the latest Court filing by Attorney Michael Sacco's office from December 9, 2021 regarding Robert Magarian. At this point, the recommendation is to continue the garnishment of Mr. Magarian's pension as this matter proceeds. The Board held a discussion on increasing the Cost of Living Adjustment(COLA)for Lexington retirees from $14K per fiscal year to $15K. This would equate to a max COLA increase from $35.00 per month to $37.50 per month based on eligibility per retiree. Robert Cunha made a motion in favor of this increase to be discussed at the next Town Meeting. Joseph Foley seconded the motion, which was unanimously approved by Fred Weiss, Carolyn Kosnoff, and Alan Fields. Tim Schlitzer and Laura Strickland presented the PRIM Real Estate overview at 9:00 am. PRIM was invited to the December Board to give their opinions and advice on Real Estate holdings to the Board Members of the Lexington Retirement. PRIM provided info on their goals for 2022,which included acquiring more RE assets to increase the portfolio bucket. They have been holding at 8.2%, but hope to rise up to 8.5%. PRIM will be targeting office space. Currently, the search for RE has been heading down in the Southeast section of the U.S. Medical fields are the main driver for new office space. The main goal of the meeting was to figure out what is best and how much to deploy into a RE Strategy. After PRIM wrapped up at 10:00 am, the Board went into discussion. Stephen MacLellan and Henry Jaung presented the Meketa update at 10:10 am. The portfolio balance as of November 30, 2021 was$223,085,462.00, down $5.7m from the previous month. Markets were struggling with the resurgence of the Covid-19 virus and variants.The main focus of discussing was to make a move with our cash holding.The cash balance remains high and not doing anything to help the portfolio. Discussions were focused on investing a percentage of our cash holding into PRIM RE investment strategy. We would still have a healthy balance of cash if we proceeded to make that move. RECEIVED 022 28 Jain, 8A, ain't TOWN CLERK LEXINGTON MA Meketa will leave the vote up to Chairman Robert Cunha and the Board members. Meketa concluded its review at 10:30 am. Robert Cunha made a motion to allocate 5%of the 7%cash holdings balance from our portfolio into the PRIM RE. Joseph Foley seconded the motion, and was unanimously approved by Fred Weiss, Alan Fields and Carolyn Kosnoff. Robert Cunha motioned to adjourn the meeting at 10:40, which was seconded by Fred Weiss, and unanimously approved by Alan Fields, Carolyn Kosnoff, and Joseph Foley. The next Retirement Board meeting will be held via Zoom on Thursday,January 27, 2022 at 8:30 am. Tentative future Board meeting dates are: 2/18/22, 3/24/22, and 4/28/22. All are Thursdays. Robert Cunha, Chairman Alan Fields, Appointed Member Carolyn Kosnoff, Ex Officio Member Joseph ... Foley, Elected Member Frederick Weiss, Appointed Member