HomeMy WebLinkAbout2025-01-30-RB-minMinutes of the January 30, 2025 Retirement Board meeting:
Present: Robert Cunha, Joseph Foley, Alan Fields, Frederick Weiss, Carolyn Kosnoff (8:45), Michelle
Malone and James Condon
Absent: None
The Lexington Retirement Board met remotely through Zoom tele -conferencing. The Town Clerks Office
posted the meeting, which included the information for any interested party to join the call. Robert
Cunha, Joseph Foley, Frederick Weiss, Alan Fields, Carolyn Kosnoff, James Condon and Michelle Malone
were present for this meeting. Robert Cunha called the meeting to order at 8:30 am.
The Board accepted the 013125 Warrant and the January payroll. The December minutes were
reviewed and approved, as well as the November cashbooks.
Robert Cunha reviewed the January agenda with all Board members and staff in attendance.
It was noted there was a White Oak distribution of $6,827.00 on 12/27/24. Also, a Fidelity Contrafund
disbursement of $28,404.50 on 01/17/25, and a Golub distribution of $175,054.00 on 01/28/25.
A buyback service request was made by Rosalyn Impink to purchase ten (10) months of service. This
service was deemed less than part-time over a period of five years while employed at Middlesex County
Retirement System. Robert Cunha made a motion to deny the buyback, which was seconded by Joe
Foley and unanimously approved by Alan Fields and Fred Weiss. Carolyn Kosnoff was not present for
the vote to deny.
Michelle Malone spoke briefly on the Ordinary Disability application filing by Dale Deane. Mrs. Deane
would like to retire due to onset Alzheimer's disease and unable to perform the duties of her job.
Robert Cunha made a motion to move forward with a Medical Panel for Mrs. Deane, which was
seconded by Joseph Foley, and unanimously approved by Fred Weiss and Alan Fields. Carolyn Kosnoff
was not present for this vote.
Donald LaConte's disability pension has been imported into the PROSPER system for PERAC. An
oversight was made during the Covid-19 Pandemic and his approval was not submitted to PERAC via
PROSPER. Board Members recently signed off and submitted to PROSPER.
The Accidental Disability medical panels for Christina DeMambro and Stephen Papia are still ongoing.
Joseph Foley spoke of the annual COLA vote that will be coming up in a future Board meeting. He has
asked for a study to see if the Board can grant COLA increases for a 3 year period. This would avoid
going to Town Meeting each year to present. The example would be 3% of $15,000.00, then 3% of
$16,000.00 and 3% of $17,000.00 over a three year period. This method is being adopted in other cities
& towns and Joe is looking to find out if it could be done for Lexington. Carolyn Kosnoff gave her
thoughts and facts on the Town's financial situation going forward. She provided some insight into
recently resolved contracts, new hires & increased salaries, as well as the Lexington High School building
project. She would need to research finances before considering this type of COLA progression.
Stephen MacLellan presented the Meketa update at 8:53 am. He spoke about the 4t" quarter being
somewhat disappointing, yet manageable. US equities remained positive, even after a choppy
November. With Trumps' victory and a now controlled Republican Congress, it is believed US equities
will continue to thrive on pro -growth policies. The Federal Reserve cut its policy rate another 0.25% in
December. He mentioned that looking ahead, there is plenty of uncertainty related to the policies of
the new Trump Administration and how it will impact the economy, inflation, and Fed policy.
Steve then gave the performance update as of December 31, 2024. The portfolio balance as of
12/31/24 was $261,409,957.00, down $3.8m from the prior month. Domestic equities dropped 2.7% in
December, while International equities were down 1.0%. Overall, the US equity pool was up 23.2% over
the 1 year, while International was up 8.0% over the same period. Global equities have suffered
recently, but did post a 14.2% over the 1 year period. Our Cash holding will continue to rise as we close
out the Matthews Asia fund. The Neuberger Berman asset is not raising any funds as of January. Steve
will report back at the February Board meeting. Also, Steve will be in contact with PERAC regarding
future manager searches and how it's handled in 2025. He wrapped up the presentation at 9:20 am.
Fred Weiss spoke briefly regarding the success of the Fidelity Contrafund. His thought to the Board is to
transfer some of those funds over to cash so we can deploy to another bucket if the need arises. Being
armed with a solid cash holding fund is appropriate if we need to make a move going forward
elsewhere. After a few options from the Board, Robert Cunha made the motion to transfer $5m from
Fidelity Contrafund to Cash at 9:30 am, which was seconded by Alan Fields, and unanimously approved
by Fred Weiss, Carolyn Kosnoff, and Joseph Foley.
At 9:35 am, the Board requested Michelle Malone and Jim Condon remove themselves from the
meeting. This request was for the Annual Performance and Compensation review for Michelle Malone.
Carolyn Kosnoff noted she would inform Jim Condon the time Bob Cunha motions to adjourn the
meeting.
Robert Cunha made a motion to adjourn the meeting at 10:00 am, which was seconded by Carolyn
Kosnoff, and unanimously approved by Joseph Foley, Alan Fields, and Frederick Weiss.
The next Retirement Board meeting will be held on Thursday, February 27, 2025 at 8:30 am via Zoom.
Acadian and Golub will present their annual reviews.
Robert Cunha, Chairman
Carolyn Kosnoff, Ex Officio Member
Frederick Weiss, Appointed Member
Alan Fields, Appointed Member
Joseph Foley, Elected Member