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Minutes of the October 20, 2016 Retirement Board Meeting
Present: Robert Cunha, Alan Fields, Joseph Foley, Fred Weiss, Rob Addelson, Marguerite Oliva, and James Condon
Bob Cunha called the meeting to order at 8:00 AM.
NEW MEMBERS: (15) Michael Ronan, Sarah Turgeon, Gabrielina Salas, Samantha Myott, Diane Davidson, Erica
Sahin, IA’s; John DiPerna, Tech Director; Alexandra Casey, Sonya Black, SSI’s; Michael Bruno, Dispatcher;
Joshua Ramos, Firefighter; Carol Moore, KA/OMA; John Taranto, Paramedic/Firefighter; Julius Chiumenti, Robert
Maloney, Truck Drivers
DEATHS: Ronald Waitkus, Laborer, 10/7/16
RETIREMENTS: Gail Barbera, SSP; Lisa Asci, Over Max Aide
The Board accepted and signed the 103116 Warrant and October payroll. The September 2016 minutes were
reviewed and approved as well as the cashbooks for August 2016.
Karen Simmons, Director of Recreation and Community Development, attended the meeting to request acceptance
of Group 2 status for the years she was employed at Fernald School and was a member of the State Retirement
Board. Karen was a recreation therapist with direct supervision of mentally defective people. During the summers,
she worked the summer camps and had supervision 24 hours a day. She also sat on the crisis team with DMR.
Karen had sent a multi-page document for the Board to review which included information provided by DSS
documenting her employment prior to the meeting. The information had originally been sent to the State Board but
she was told that as a Lexington employee, LRS had to accept or reject the proposal. After Karen left, the Board
voiced a concern that the State required LRS to accept her request. Because of the documentation Karen provided, it
was agreed there was enough information to be able to charge back the State. A motion was made by Bob to accept
the Group 2 status, seconded by Joe, approved by Alan and Fred. Rob abstained due to the working relationship.
Notification was received of the death of ADR Ronald Waitkus. He died from a cause not related to his retirement.
Ch. 32, s. 101 survivors are eligible to receive $12,000 per year but Ronald’s gross annual pension was less than
$12,000. Maggie had forwarded a question to Kate Hogan at PERAC for clarification of the amount that Janet
Waitkus can receive. After no response Mike Sacco was notified and his response was the Board could pay either
amount and see how PERAC responds. The Board decided that Janet should be paid the amount Ronald was
receiving and if PERAC replies that she should receive $12,000, it would then be changed.
Maria Frey was a former employee from 9/3/97 – 6/25/99. Her funds were transferred to MTRS in August 2002 and
Lexington accepted liability for one year, nine months service. She called to say that she wanted credit for a full two
years since MTRS grants credit for the summer months. It was explained to her that she ended her LRS membership
when she resigned her position in June 1999 and since she was no longer an employee nor paying into the system
she would not be granted the three month’s service. She became adamant about being granted the extra three
months. She was told that she could contact the Board with her request and was told the next meeting would be
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November 29.
The Board was cc’d on a PERAC letter to DALA objecting to the O’Leary decision regarding vacation pay.
Mike Sacco sent notification that Rodney Blake’s Workers Comp claim has settled. When a check is received from
the insurance company, Rodney’s pension will be made whole.
There was a White Oak call for $135,795; the Vanguard balance on 9/30/16 was $8,135,314; the Q3 2016 Fidelity
Plan Expense of $11,050 was received. $1m was transferred to the PRIT Real Estate Fund on 10/1 with the next
$1m being transferred on 11/1.
Annual manager meetings were held with Monroe, Matthews and White Oak. Sean Duff, Zia Uddin and Megan
Cruse presented the Monroe Senior Secured Direct Loan report. The fund is now closed to new investors and a new
Opportunistic Fund is being launched. Since inception, Lexington’s return is 8.88%. Original commitment was
$6,000,000. The remaining unfunded capital commitment is $599,000 and may be called.
Susan Grivas and Dave Donnelly presented the Matthews Asia Tiger Fund annual report. Discussed were the
portfolio characteristics noting the overweight in consumer staples which have outperformed more cyclical sectors
such as emerging market materials and energy. Wage growth in Asia is higher when compared to global wage
growth. China is importing less due to the greater production of what is consumed. The average annual total returns
for the Matthews Pacific Tiger Fund year-to-date are 10.5% and 19.78% for one year.
Paul Aherns presented the White Oak report. The cash yield currently is 10.2% and they are trying to reach 12%.
The largest sector exposure is telecom services followed by consumer discretionary. Mr. Aherns discussed the
performance of the LRS portfolio noting it is a portfolio of strong loans. The portfolio summary included a report of
new acquisitions.
Henry Jaung from Meketa mentioned that private equity companies Monroe, Golub and White Oak are strong
enhancers to the portfolio. It was decided that Henry should make it a priority going forward to look for more
private equity companies.
The market value of the portfolio on 9/30 was $143.9m. Henry presented the reports for current allocations and
asset class performance. The RFP for SMID core equity will be discussed at the November meeting.
As of June 2016, approximately 4.2% of the total system is invested in fossil fuel companies. Within the exposure,
approximately 1.6% of the total System is invested in the Carbon Underground 200 Companies. Meketa’s analysis
included equity managers Hartford, Fiduciary, Fidelity, Rhumbline, Matthews, Acadian and Wellington; fixed
income manager, Loomis Sayles and opportunistic manager, Wellington.
$1m was transferred to the PRIT fund on 10/1. The next $1m will be transferred 11/1/16.
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Golub representatives will be attending the November 29 meeting.
The Board was reminded of the educational requirements and given PERAC Credits Earned reports.
The Board discussed Maggie’s increase and the Board voted 4 to 1 to increase her salary by $4,488.77 to a gross
amount of $87,815.00. Rob had proposed a lesser amount.
A motion was made, seconded and approved unanimously to adjourn the meeting at 10:30
The next meeting will be held November 29, 2016, 8:00 AM at Cary Memorial Library.
Robert Cunha, Chairman Alan Fields, Appointed Member
Robert Addelson, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member