HomeMy WebLinkAbout2016-07-28-RB-min
Minutes of the July 28, 2016 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Rob Addelson; Marguerite Oliva
Absent: Joe Foley, Fred Weiss
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (10)Timothy Goncalves, IT Support Tech.; Jaclyn Souza, Substitute Service
Coordinator; Eric Pekarsky. Custodian; Ann McKean, Municipal Clerk; Drew Haughn, Christine
Manfra, Michaela Nargi, Allyson Nolan, SSI’s; Alexandra Foy-Smith, IA; Laura Schroeder,
School Secretary
RETIREMENTS: Alan Hadley, DPW Information Coordinator, 9/23/16
The Board accepted and signed the 072916 Warrant and July payroll. The June 2016 minutes
were reviewed and approved as well as the cashbooks for May 2016.
The Board discussed the actuarial reports provided by Dan Sherman. Rob spoke with Carl
Valente and he is in agreement with decreasing the assumption to 7.5% and increasing the
COLA base to $14,000. A motion was made by Alan, seconded by Rob and voted unanimously
to accept the 7.5% assumption and to seek the COLA base increase. Rob mentioned there will
be a special town meeting in the fall and the possibility of putting the increase request on that
agenda. Bob said he would talk with Susie Barry to see if it could be added to the fall agenda.
There was a discussion about Mike Sacco’s letter that discussed setting an interest rate for funds
that were owed to the LRS or owed by LRS to members and retirees. The letter mentioned using
the whole assumption rate, half the assumption rate, or the 3% that is currently paid to members
who resign. PERAC’s response to Mike was that the Board could set whatever rate they wished
as long as it was equitable across the board. Rob mentioned setting the interest rate based on
MMDT and he will draft a memo for the next meeting.
The Board discussed the three retirees who have failed to complete the 91A filings for PERAC.
Certified letters will be sent informing them that the direct deposits will be stopped and checks
will be held in the office until they comply with PERAC’s regulation.
The Vanguard balance on 3/31 was $7,334,848 and there was a transfer from the Town on 7/11
for $92,859.12.
The Q2 Fidelity Plan Expense reimbursement for $11,449 was received and there were
distributions from White Oak for $29,601 and Golub for $98,000.
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The 1 quarter FY’17 appropriation for $1,360,693 was drawn and the second $1,000,000
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transfer from cash to the PRIT RE Fund is set for August 1.
James Condon who was interviewed by Bob, Joe, Rob and Maggie will be offered the part-time
position as assistant. Starting salary will be based on the LMEA step chart placing him at Grade
4, step 6 at $30.67/hour for 20 – 25 hours. James will be allowed three weeks’ vacation and
accrued sick days.
Mark Selby and Kyle Concannon from William Blair presented the Macro Allocation Strategy
update. They presented an overview of the firm, assets under management and the allocation
strategy team. The review for expected returns show high possible returns for Non U.S. and
Emerging Market Equities. The performance summary was presented. Assets for Lexington
Retirement as of 7/22/16 were $4,659,907 and the performance since 7/31/15 is -7.10%.
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Steve MacLellan presented the 2 quarter 2016 report. The market value as of 6/30 was
$141.2m up from $136.8 on 3/31/16. Year to date the assets increased 2.1%. Domestic equity is
the largest asset class with fixed income being second. One third of the portfolio offers flexibility
which would allow a quick move if necessitated.
Rob questioned if Blair should be kept in the portfolio and the answer was yes. Blair has only
been in the portfolio since 7/31/15. Steve felt they can earn up to 7.5% return if implemented
correctly and quickly. The portfolio is in line with target allocations. No major moves at this
time.
Steve discussed the legislative update for Chapter 68. If any system is less than 65% funded and
lag PRIT by 2%, the system would be forced into PRIT for five years.
The Board was reminded of the educational requirements and were given the PERAC earned
credit reports to review.
The following manager meetings have been set: FMI, Sept. 22; Matthews, Monroe and White
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Oak for Oct. 20 and Golub for Nov. 29. A request will be sent to PRIT to attend the Aug. 25
meeting.
Compensation study in progress for Maggie’s review.
No change in fossil fuel stance. As of December 2015, approximately 3.7% of the total system
in invested in fossil fuel companies.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:00.
The next meeting will be held August 25, 2016, 8:00 AM at Lexington Town Hall in the Parker
Room
Robert Cunha, Chairman Alan Fields, Appointed Member
Absent
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Absent
Frederick Weiss, Appointed Member