APPROVED BY BOARD at the December 17, 2008 Meeting
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
WEDNESDAY, NOVEMBER 19, 2008
The meeting was called to order by Joseph Carlson, Chairman at 5:45 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
ABSENT: Frank Vignati, Member
Rick Morrison, Member
ALSO PRESENT: Michael Walsh, Finance Director
Robert Percy, Esq. – Board Attorney
John O’Connor, 3D Asset Management
Christopher Kachmar, Fiduciary Investment Advisors, LLC
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of October 22, 2008:
Motion by Mr. Christensen, seconded by Ms. Rossi to approve as presented the Minutes of the Regular Meeting of October 22, 2008.
The Motion was voted; Motion was unanimously approved.
COMMUNICATIONS:
a. Newspaper article dated 11/5/08 RE: Benefits for police officers at 10/22/08 meeting
This was provided as information to the Board.
4. REPORTS:
a. Summary of Portfolio Asset – October, 2008
b. Summary of Expenses – October, 2008
This was accepted as information for the Board members.
c. Symmetry Partners - Performance Report as of October 31, 2008.
Mr. Walsh advised the Board that Ms. Wasilewski, Symmetry Partners, emailed the Town of East Hartford Employee Retirement Plan Performance Report as of October 31, 2008 and it was distributed to the Board for review. Chairman Carlson reviewed the Time-Weighted return for calendar year (1/1/08 – 10/31/08) is at minus 25.57%. The fiscal year 2009 Time Weighted Return is at minus 20.45% as of 10/31/08.
Mr. Walsh discussed the transition from Symmetry Partners to 3D Asset Management and Fiduciary Investment Advisors (FIA). The current market was briefly discussed and Mr. O’Connell advised the Board that he had compared East Hartford with other Connecticut municipalities and East Hartford was not doing as bad as some other towns.
Discussion was held on the role 3D Asset Management and FIA would have in future meetings and it was agreed that they would be added to the agendas equally. They would work together with separate reports with consolidation for Board.
5. OLD BUSINESS:
a. Atty. Percy opinion:
1. Issue of Chief of Police – DROP Plan Issue
Attorney Percy distributed a copy of his opinion to the Board members dated 11/19/08. Attorney Percy advised the Board that after reviewing various memorandums from Mr. Walsh and Chief Sirois and the meeting held on October 30, 2008 with Mayor Currey and her staff on this issue, he was rendering his opinion. Based on his research and discussions, it is his opinion based upon the current Plan provisions and Chief Sirois’s DROP election that unless Chief Sirois applies for and is released by the Retirement Board from his DROP election he must terminate service on 8/25/2010 or be in breach of both the Plan provisions and his agreement. The Board accepted this opinion.
Mr. Walsh requested the release of this opinion to both Mayor Currey and Chief Sirois. The Board agreed this opinion could be released.
Brief discussion was held on the request from the October meeting for Attorney Percy to review the new contracts with Fiduciary Investment Advisors, LLC and 3 D Asset Management. Attorney Percy advised the Board that he had done that and both contracts looked good to proceed. A brief discussion was held on the paperwork to proceed and the Trustee address changed to the Town Hall address.
b. Other Post-Employment Benefits
1. Ordinance Change
2. Trust
3. Valuation (under separate cover)
Mr. Walsh advised the Board that Attorney Percy will review the issue of a trust creation and advise the board if his office can handle this work.
Chairman Carlson requested postponing discussion on this matter since two members were not in attendance for this meeting.
Motion by Mr. Christensen, seconded by Ms. Rossi to TABLE this to next month’s meeting.
Motion was voted; Motion was unanimously approved.
ADD-ON TO MEETING:
#6a. Chester Lemrise, BOE, Non-Service Connected Disability eff. 9/26/08
#6b. Margaret Melendy, BOE, resigned 3/8/04
#6e. Fiduciary Investment Advisors – Fixed Income
#6f. 3D Asset Management
Motion by Ms. Rossi, seconded by Mr. Christensen to add items #6a, b, e & f to the agenda.
Motion was voted; Motion was unanimously approved.
6. NEW BUSINESS:
a. Retirements and Final Calculations:
1. Chester Lemrise, BOE, Non-Service Connected Disability eff. 9/26/08
Motion by Mr. Christensen, seconded by Ms. Rossi to approve as presented the retirement and final calculations for Chester Lemrise effective 9/26/08.
Motion was voted; Motion was unanimously approved.
b. Withdrawal of Contributions:
1. Margaret Melendy, BOE, resigned 3/8/04
Motion by Ms. Rossi, seconded by Mr. Christensen to approve as presented the withdrawal of contributions with interest for Margaret Melendy.
Motion was voted; Motion was unanimously approved.
c. 2009 Pension and Retirees Benefits Board calendar
Motion by Ms. Rossi, seconded by Mr. Christensen to approve as presented the 2009 Calendar for the Pension and Retirees Benefits Board.
Motion was voted; Motion was unanimously approved.
d. Segal Company Quote for Plan Document Updates
Mr. Walsh advised the Board on the request made in 2006 for The Segal Company to consolidate the five Plans into one Master Plan Document. A letter from Mr. Dawidowicz, The Segal Company dated 11/18/08 was distributed to the Board and a brief discussion was held on the work needed to complete this project and the estimated cost. Mr. Walsh advised the Board that this is necessary to have one Master Plan with appendixes, and the need for them to mirror each other for administration purposes. To date the Town has paid $15,714 towards this work. The estimation for completion is $30,000 to $35,000. Discussion was held on where these funds were coming from and Mr. Walsh referred to a previous opinion from Attorney Percy that these were being paid from the Plan as a normal expense.
Motion by Mr. Christensen, seconded by Ms. Rossi to approve moving forward with the original request and the expense of $30,000 to $35,000 to The Segal Company to complete the Plan Document consolidation.
Motion was voted; Motion was unanimously approved.
e. Fiduciary Investment Advisors, LLC – Fixed Assets
Mr. Kachmar distributed “Fixed Income Sector Returns” and “Fixed Income Discussion Materials”. Discussion was held on the Plan’s Fixed Income Allocation current investment and potential reallocation. This will be further discussed at upcoming meetings when the Board has a full Board in attendance.
f. 3D Asset Management
Mr. O’Connor distributed “East Hartford Employee Retirement Plan Transition Highlights”. Mr. O’Connor advised the Board on the process of the transition so far and a brief discussion followed.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Retirement Board – November 19, 2008 meeting $ 100.00
b. Convicer & Percy, LLP Inv. #20232 (Oct., 2008) 2,275.00
Motion by Mr. Christensen, 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 Ms. Rossi, seconded by Mr. Christensen to adjourn the regular meeting at 6:45 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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