UNAPPROVED BY BOARD
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
WEDNESDAY, DECEMBER 17, 2008
The meeting was called to order by Joseph Carlson, Chairman at 5:50 P.M. in the Town Council Majority Room, East Hartford Town Hall. In addition to Mr. Carlson there were
PRESENT: Barbara-Ann Rossi, Member
Kurt Christensen, Member
Frank Vignati, Member
ABSENT: Rick Morrison, Member
ALSO PRESENT: Michael Walsh, Finance Director
Wayne Connors, 3D Asset Management
John O’Connor, 3D Asset Management
Christopher Kachmar, Fiduciary Investment Advisors, LLC
Thomas Dawidowicz, The Segal Company
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of November 19, 2008:
Motion by Mr. Christensen, seconded by Mr. Carlson to approve as presented the Minutes of the Regular Meeting of November 19, 2008.
The Motion was voted; Motion was approved, with Mr. Vignati abstaining.
COMMUNICATIONS:
- Chairman’s request for date change of January 28, 2009 meeting to January 21, 2009
Mr. Carlson advised the Board members that he would be unavailable for the January 28, 2009 meeting and requested a change to January 21, 2009. The following motion was made:
Motion by Mr. Vignati, seconded by Mr. Christensen to change the regular January 28, 2009 meeting to January 21, 2009.
Motion was voted; Motion was unanimously approved.
b. Copy of 2009 calendar posted with Town Clerk’s office
This was provided as information to the Board.
4. REPORTS:
a. Summary of Portfolio Asset – November, 2008
b. Summary of Expenses – November, 2008
This was accepted as information for the Board members.
c. Fiduciary Investment Advisors, LLC - Performance Report as of November 30, 2008.
Mr. Kachmar reviewed the Fixed Income Allocation with the Board members. Discussion was held on reallocation of the Fixed Income portion of the Plan and Specialized Fixed Income Managers. Mr. Kachmar recommends adding Vanguard, PIMCO, Trust Co. of the West and Loomis Sayles as managers. Brief discussion followed. The following motion was made:
Motion by Mr. Vignati, seconded by Mr. Christensen to approve the reallocation of 50% of the Fixed Income, as presented by Fiduciary Investment Advisors, LLC, to include DFA, Vanguard, PIMCO, Trust Co. of the West, and Loomis Sayles.
Motion was voted; Motion was unanimously approved.
d. 3 D Asset Management – Performance Report as of November 30, 2008
Mr. Connors and Mr. O’Connor distributed the Portfolio Performance as of 11/03/2008 to 11/30/2008. Brief discussion was held on the conversion from Symmetry Partners and the collaboration with Fiduciary Investment Advisors, LLC. The funds were reviewed and discussion on the November market. The starting balance was $127,818,536.17, with the Fixed Income Allocation transfer of $40,089,264.60 and a Capital Appreciation of -$8,201,553.00. The Period Return was – 4.20% and the Total Account Value of $81,902,117.63. They will be recommending changes to the report in the future months.
Mr. Vignati complemented the advisors for their presentation to the Board.
Mr. Walsh advised the Board members that since there were a lot of items that needed to be discussed at this meeting, he would recommend that items #5a 1 – 4 and #6c be postponed to a future meeting. Mr. Walsh excused himself at this point in the meeting.
Motion by Mr. Christensen, seconded by Mr. Vignati to defer items #5a. 1-4 and #6.c. to a future meeting due to the amount of items on the agenda for the December meeting.
Motion was voted; Motion was unanimously approved.
5. OLD BUSINESS: _Postponed – No Action Taken
a.. Other Post-Employment Benefits
1. Ordinance Change
2. Trust
3. Valuation (under separate cover)
6. NEW BUSINESS:
a. Retirements and Final Calculations:
1. Agueda Delgado-Aranda, BOE, Early Retirement eff. 10/3/08
2. William Tardif, BOE, Early Retirement eff. 11/21/08
3. Barbara Magnotta, Town, Normal Retirement eff. 10/31/08
b. Withdrawal of Contributions:
1. Francis Thibodeau, BOE, resigned 11/5/08
2. William Franklin, BOE, eff. 11/5/08
3. Stefan Krach, Town, eff. 9/3/08
Motion by Mr. Vignati, seconded by Mr. Christensen to approve as presented the retirement and final calculations for Agueda Delgado-Aranda, William Tardif, and Barbara Magnotta and the Withdrawal of Contributions with interest for Francis Thibodeau, William Franklin and Stefan Krach. .
Motion was voted; Motion was unanimously approved.
c. Fiduciary Role of Board Members – Postponed – No Action Taken
d. 2009/10 Requested Budget
After a brief discussion on the 2009/10 Requested Budget the following motion was made:
Motion by Mr. Christensen, seconded by Ms. Rossi to approve the 2009/10 Requested Budget for the Pension and Retirees Benefits Board by maintained at the present level.
Motion was voted; Motion was unanimously approved.
e. The Segal Company July 1, 2008 Valuation Report Draft
Mr. Dawidowicz discussed the July 1, 2008 Valuation Report that they are finalizing at present. Discussion was held on the 8.50% annual interest rate that has been used for awhile. This interest rte is chosen to reflect the asset mix in the Plan’s pension investment portfolio and the expected long-term investment earning on those assets. The concerns are that this is not in keeping with current conditions. Mr. Dawidowicz would recommend an 8% interest rate. Mr. Carlson and Mr. Christensen referred to an email from Mr. Walsh recommending that the Board keep the rate at 8.5% for next fiscal year and then 8.25% the following year and 8.00% the year after. An in-depth discussion was held on the current budget and the added expense this would create.
Motion by Mr. Vignati, seconded by Mr. Christensen to TABLE this to the January meeting and discuss this with Mr. Walsh.
Motion was voted; Motion was unanimously approved.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Retirement Board – December 17, 2008 meeting $ 100.00
b. Convicer & Percy, LLP Inv. #20385 (Nov., 2008) 1,330.00
Motion by Mr. Vignati, seconded by Ms. Rossi to approve as presented for payment items
# 7a & b.
The motion was voted; Motion was unanimously approved.
8. ADJOURNMENT:
There being no further business,
Motion by Mr. Vignati, seconded by Ms. Rossi to adjourn the regular meeting at 7:10 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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