HomeMy WebLinkAbout2016-05-26-RB-min
Minutes of the May 26, 2016 Retirement Board Meeting
Present: Robert Cunha, Joe Foley, Fred Weiss, Marguerite Oliva, Alan Fields, Rob Addelson
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS:(2)Deniele Pozz, Accounts Payable Associate; Patricia Daigle, School
Finance Clerk
DEATHS: None
RETIREMENTS: Joanne Blondin, IA, 6/30/16; Kenneth Tremblay, Asst. Fire Chief, 6/24/16;
Ann Griffith, Spec. Ed. Asst., 6/29/16; Donna Hooper, Chief Information Officer, 7/15/16
The Board accepted and signed the 052916 Warrant and May payroll. The April 2016 minutes
were reviewed and approved as well as the cashbooks for March 2016.
Karen Marchant tendered her resignation on May 9, 2016 indicating her last day would be May
th
19. There was a discussion noting that her replacement would have to be hired at the 20 hour
threshold for membership which will make him/her eligible for benefits. The ad will be placed
on the PERAC website and will be e-mailed to other administrators with the hope of finding an
individual who has Ch. 32 and PTG experience. Maggie discussed the possibility of decreasing
her hours in the not too distant future.
Dan Sherman presented the primary comparison results as of January 1, 2016. From 2014 to
2016 the active members increase 2.4%, retirees increase 2.6%, inactive members decreased by
1.4% and disabled members remained the same. The total payroll increased 4.9% and the
average annual salary increased 2.4%. It appears members are leaving at a younger age and
shorter service. Dan discussed the five year experience report he performed using eight systems.
PERAC’s study is 15 years old and although Jim Lamenzo has said they would be doing a new
study, it has yet to be done. Dan’s study shows that for both Group 1 and Group 4 members, the
termination rate is much higher than expected and disability rates were lower than expected.
Rates of retirement were greater than expected at younger ages and less than expected for older
ages. Mortality rates for both groups were also higher than expected; Group 1 was 25% higher
and Group 4 was 43% higher.
Dan reported on funding alternatives using 7.75% and 7.5% assumptions. Using the current
assumption of 7.75%, 2025 as the fully funded date and a $13,000 COLA base, the appropriation
for FY’18 would increase to $5,972,757 from $5,505,537 for FY’17. If the funding schedule is
increase to 2026, the appropriation would be $5,748,846. Looking at the same demographics but
using 7.5% assumption, the amounts would be $6,893,911 and $6,500,566. Bob asked Dan to
report on increasing the COLA base to $14,000.
Dan’s thoughts on the “once a member issue” was that it has a negligible effect on the system.
Steve presented the Meketa report. The portfolio increased in April to $137.2m with Hartford
and Fiduciary Large Cap outperforming the benchmarks. Steve discussed the PRIT Real Estate
holding noting that they had done well. There was a discussion of moving 5% to real estate.
Noting that there is $6m in cash, it was voted unanimously to move $1m from cash to the PRIT
Real Estate Fund and add to it each month. Alan suggested looking at the global tactical
allocation to move 5% next month.
Mike Sacco will be attending DALA on June 1, 2016 for the Creedon hearing and will advise the
Board of the outcome.
Contract extensions have been put in place for Meketa, PTG, State Street, Mike Sacco and Dan
Sherman.
The Town wired $299,187 to the Vanguard OPEB fund and the balance is now $7,207,740.
Town Meeting has appropriated $1.5m for FY’17 which will be paid in quarterly increments.
State Street sent a letter regarding billing errors and reimbursement. $54 will be returned.
Monroe distributed $131,119.
No change in the fossil fuel stance. As of December 2015, approximately 3.7% of the total
system in invested in fossil fuel companies.
Bob and Joe will be attending the MACRS conference in Hyannis.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:20.
The next meeting will be held June 23, 2016, 8:00 AM at Lexington Town Hall in the Parker
Room
___________________________ _______________________________
Robert Cunha, Chairman Alan Fields, Appointed Member
_______________________________ ________________________________
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
_______________________________
Frederick Weiss, Appointed Member