HomeMy WebLinkAbout2020-11-24-RB-min Minutes of the November 24, 2020 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley,Alan Fields, Fred Weiss, Carolyn Kosnoff, Marguerite Oliva and
James Condon
Absent: None
NEW MEMBERS: (5) Ryan Voto, Student Support; Crystal Dolcimascolo, Petrula Laudato, Zachary
Rhodes, Sarah Burgoyne, Instructional Assistants;
RETIREMENTS:
DEATHS: (3) Leonard Muller, Firefighter, 10/22/20; William Young, Detective, 10/17/2020; Elinor
Greenway, Clerk, 11/08/2020
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 112720 Warrant and the November payroll. The October minutes and
September financials were reviewed and approved.
Bob Cunha reviewed the November agenda with all Board members and staff in attendance.
The matter of Robert Magarian was discussed after an audit discovered he has been overpaid monthly
on his ADR pension since June 2018. Marguerite Oliva explained the calculation to the Board. Mr.
Magarian was notified that his June 2018 payment would include a one-time retro of$3,665.55 on top
of his regular ADR monthly amount. He was made aware of what his payments would be going forward
after the retro payment. In July 2018, the figures were not changed and he continued to receive the
additional $3,665.55 per month, fully knowing it was a one-time retro for June 2018. The extra
$3,665.55 has been paid through October 2020. Mr. Magarian has collected a total of$102K since July
2018, yet failed to mention or question why the pension was so high. He has been sent a certified letter
with documentation of this matter. We have yet to hear back. Attorney Michael Sacco has been made
aware of this matter. The Board will wait to hear back from the Retirement office on any information
relayed from Mr. Magarian. Stopping or reducing his payment was part of this discussion.
Each year, the Retirement office sends out an Annual Benefit Verification Affidavit to its retirees. This
form needs to be signed and notarized. Due to the ongoing Covid-19 Pandemic,which appears to be
worsening at this time, it was questioned whether we should conduct the program in January 2021. The
risk for our members to seek a notary seems too high. Massachusetts law requires this program to be
initiated not less than once every two years. Lexington Retirement Board has asked its members yearly
to complete the Affidavit. The feeling amongst the Board members was to take a year off from the
program. Bob Cunha made a motion to halt the 2021 Annual Benefit Verification program for its
retirees due to the ongoing Pandemic. The motion was seconded by Joseph Foley, and unanimously
approved by Carolyn Kosnoff, Fred Weiss and Alan Fields. The program will be reactivated in January
2022.
A motion was made by Robert Cunha to approve the buyback request for Karen Hurley. The motion was
seconded by Carolyn Kosnoff, and unanimously approved by Fred Weiss,Joe Foley, and Alan Fields. Her
bi-weekly retirement deduction was inadvertently removed in error in June 2019 by a school payroll
administrator. The error was not discovered until October 2020. Ms. Hurley was issued a buyback
calculation worksheet in the amount of$7,684.31 to recoup the creditable service. She has agreed to
the buyback and submitted the request to purchase. Once paid in full, she will receive one (1)year and
four(4) months of creditable service.
Tamzid Ladd and Joseph Haynes Jr. have both submitted the necessary 91A paperwork to PERAC
regarding earnings for the calendar year 2019. This will eliminate the need to suspend pension benefits
for failure to comply.
A Regional Medical Panel Board, comprised of three (3) individual doctors, have all concluded that Mr.
Andrew Orfanos is deemed unable to return to work based on injuries suffered while on the job. Robert
Cunha made a motion to approve the ADR pension for Mr. Orfanos based on the findings. The motion
was seconded by Joe Foley, and unanimously approved by Alan Fields, Carolyn Kosnoff, and Fred Weiss.
Joseph Foley, retired firefighter,was the only candidate to have submitted valid nomination papers for
election to the Lexington Retirement Board. Consequently,the Lexington Retirement Board voted to
declare that Joseph Foley be considered elected to the Board for his sixth term. The vote was held at
the November 24, 2020 Retirement Board meeting. His term will commence on 12/30/20 and expire on
12/29/23. Voting members in attendance were Robert Cunha,Alan Fields, Fred Weiss and Carolyn
Kosnoff. The vote was 4-0 in favor to re-elect Mr. Foley.
It was noted a distribution of$37,800.00 was received from Angelo Gordon. A second distribution was
received by Golub for$50,664.00
Stephen MacLellan and Henry Jaung presented the Meketa portfolio update at 8:45 am. The portfolio
balance as of October 31, 2020 was$185,585,051.00, down $1.2m from the prior month. YTD
performance is up 1.8%. The portfolio performance remains strong with all holdings still in place. The
past month was subpar for earnings in each class,yet overall, domestic equities such as KAR and
Contrafund are major drivers in the portfolios success this year. Meketa feels we are still overweight in
public equity. The Board will discuss at a future meeting. Our PRIT Core RE Fund has been dissolved
into our cash fund.
Franceso Daniele, Emily Green, and Eric Nierenberg presented the PRIM review at 9:15 am. The Board
currently has$79.6b in Assets under Management. They now hold 48 public market portfolios. Global
equity remains their largest asset, consuming 39%of the overall fund. It has been brought down from a
high of 42.9%just one year ago. Fixed and Private equity are the 2nd and 3rd highest drivers in the PRIM
portfolio. Due to the ongoing Covid-19 Pandemic,the commercial RE holdings have taken a major hit.
Office space was hot prior to pandemic, however February and March experienced a huge selloff. As
time went on,the need for retail space was evaporating. Working from home became the norm, and e-
commerce became more popular. Many RE transactions for office buildings became weak in mid-
summer. Warehouses actually became a strong commodity. Companies like Amazon and Walmart were
ramping up distribution sites to meet the demand of online retail. These warehouses were being
acquired outside the Class A zone of RE,which is usually located in major downtown districts. It was
noted the Bio-Tech RE sector in the Cambridge area remained strong. With so many pharmaceutical
companies in Cambridge,the real estate of those buildings remains richly priced with no bargains on the
table. Companies want to remain there,while others want to set up in that area. PRIM then wrapped
up the presentation at 10:00 am.
Chairman, Robert Cunha, excused himself from the meeting at 9:40 am.
Board members were reminded to visit the PROSPER website to view and attend upcoming educational
webinars being offered in the month of December.
Joseph Foley motioned to adjourn the meeting at 10:05 am,which was seconded by Fred Weiss, and
unanimously approved by Alan Fields and Carolyn Kosnoff.
The next Retirement Board meeting will be held on Tuesday, December 22, 2020 at 8:30 am. The
meeting will be held remotely via Zoom.
Robert Cunha, Chairman Ala p
' n Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member