APPROVED BY BOARD at the March 25, 2009 meeting.
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
WEDNESDAY, FEBRUARY 25, 2009
The meeting was called to order by Joseph Carlson, Chairman at 5:55 P.M. in the Town Council Majority Room, East Hartford Town Hall. In addition to Mr. Carlson there were
PRESENT: Barbara-Ann Rossi, Member
Frank Vignati, Member
Rick Morrison, Member
ABSENT: Kurt Christensen, 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
Sara Monde, The Segal Company
Richard Toce
Chairman Carlson observed a moment of silence in honor of two prominent East Hartford citizens, George Stewart and John Johnston, who have passed this week.
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of January 21, 2009:
Motion by Mr. Vignati, seconded by Ms. Rossi to approve as presented the Minutes of the Regular Meeting of January 21, 2009.
The Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
a. HELPS – Health Care Enhancement for Local Public Safety Officers
Mr. Walsh advised the Board that the IRS will allow retired firefighters/police officers to exclude from income distributions made from eligible retirement plans up to $3,000 annually to pay the costs for accident, health insurance, or long-term care insurance. The distribution must be made directly from the retirement plan to the insurance provider. Mr. Walsh was bringing this for the Board to offer this to retired Police and Firefighters. Discussion was held on the cost to the plan and Mr. Walsh thought the cost would be transactional based from Aetna. The following motion was made:
Motion by Mr. Vignati, seconded by Ms. Rossi to approve the HELPS Plan for Police and Firefighters with the retiree assuming all the cost of administering this benefit.
Motion was voted; Motion was unanimously approved.
4. OLD BUSINESS - None
5. NEW BUSINESS:
a. Retirements and Final Calculations:
1. Richard Toce, Public Works, Early Retirement eff. 2/3/09
Mr. Walsh advised the Board that Mr. Toce’s Assistant Director of Public Works position was eliminated from the budget as part of the Town’s fiscal problems. Mr. Toce was one of the eight employees that were laid-off in early February. Mr. Toce was a member of the Local #818 Union and has over 21 years of service to the Town. As part of the concessions that Union #818 is offering, the Council and Administration agreed to allow Mr. Toce to retire early with a change in the Early Retirement Factor reduced from 5% to 2.5% and Mr. Toce contributing $25,561 to the plan to offset the Towns $82,000 cost of providing this benefit. Discussion was held on the retirement and the following motion was made:
Motion by Mr. Morrison, seconded by Mr. Vignati to approve the retirement as presented for Richard Toce with enhancement.
Motion was voted; Motion was unanimously approved.
b. Withdrawal of Contributions: - No action taken
1. Richard Walz, Public Works
Mr. Walsh advised the Board that Mr. Walz had originally requested Withdrawal of Contributions due to his position also being eliminated, but due to another concession by Local #1174 Union and other retirements from this Union he would be coming back to work and withdrawing his request.
6. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board/February 25, 2009 meeting $ 100.00
Motion by Mr. Vignati, seconded by Ms. Rossi to approve as presented for payment item # 7a.
The motion was voted; Motion was unanimously approved.
7. REPORTS:
a. Segal Company July 1, 2008 Valuation Report
Mr. Dawidowicz distributed a handout that will be distributed to the Town Council at the 2009/10 Budget Workshop that will be held on February 28, 2009. Discussion was held on the report. Mr. Dawidowicz briefly reviewed the July 1, 2008 Actuarial Valuation Report. This was accepted by the Board.
b. Summary of Portfolio Asset – January, 2009
c. Summary of Expenses – January, 2009
This was accepted as information for the Board members.
d. Fiduciary Investment Advisors, LLC – February 2009 Fixed Income Report
Mr. Kachmar reviewed the Fixed Income reallocation that took place on December 19, 2008. The Fixed Income is $40,804,919 as of February, 2009. A brief discussion followed.
e. 3 D Asset Management – Town of East Hartford Employee Retirement Plan Equity Component Monthly Review February 2009.
Mr. O’Connor distributed the Equity Component Monthly Review February 2009. The Portfolio Performance for January 2009 funds were reviewed and discussion on the current market. The starting balance was $84,129,795.98 and after transfer of Fixed Income Allocation, Capital Appreciation, Income, the ending Portfolio balance was $75,499,046.12 . The Period Return was -10.69% after benefit payments to retirees of $1,246,236.11. Discussion followed on the report.
Mr. Connors distributed the Performance ending January 31, 2009 on Major Market Index and Asset Class. Discussion followed on the market in respect to Real Estate market and the U.S. Stocks and International Stocks. Mr. Connors reviewed the Asset Classes and discussed their recommendation. After a brief discussion the Board’s consensus was to go ahead with the recommendation from 3D Asset for Equity Allocation.
8. ADJOURNMENT:
There being no further business,
Motion by Mr. Morrison, seconded by Ms. Rossi to adjourn the regular meeting at 7:05 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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