APPROVED BY BOARD at June 24, 2009 Meeting
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
WEDNESDAY, MAY 27, 2009
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
Scott Thompson, Member
ABSENT: Frank Vignati, Member
ALSO PRESENT: Michael Walsh, Finance Director
Wayne Connors, 3D Asset Management
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 April 22, 2009:
Motion by Mr. Christensen, seconded by Mr. Thompson to approve the Minutes of the Regular Meeting of April 22, 2009.
The Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
a. Mr. Walsh – Discussion of fiduciary roles of advisors
Mr. Walsh distributed copies of the magazine “PlanSponsor” with the cover article announcing Fiduciary Investment Advisors as “Retirement Plan Adviser Team of the Year”. Mr. Walsh commended Mr. Kachmar on their accomplishment.
Mr. Walsh advised the Board that he wished to clarify a discussion at last month’s meeting regarding the necessity of a vote by members on the manager’s allocation of funds. Discussion followed on the discretion of the managers and Mr. Walsh advised that it was proper either for the Board to vote or not to vote.
b. OPEB Contributions – Mr. Walsh
Mr. Walsh advised the Board that a purchase order was set up today to move $2.38 million to Fiduciary Investment Advisors for 40% and 3D Asset Management for 60% as part of the OPEB Trust. Brief discussion followed.
4. OLD BUSINESS - None
5. NEW BUSINESS:
a. Retirements, Final Calculations, Withdrawal of Contributions:
1. Sharon Eiter, Police, DROP Plan eff. 2/27/09
2. James Murray, Police, DROP Plan eff. 3/12/09
3. Curt Stoldt, Police, DROP Plan, eff 3/12/09
4. Tammy Fagan, Grants, Early Retirement, eff. 3/31/09
5. Judith Unsworth, Corp. Counsel, Normal Ret, eff. 3/31/09
6. Primo Arroyo, Park Dept., Normal Ret., eff. 3/13/09
7. Eugene Burzawa, Park Dept., Normal Ret., eff. 3/13/09
8. Roger Absher, BOE, Normal Ret., eff. 5/1/09
A brief discussion was held by Mr. Walsh on the retirements (#1 & #2) that were held over from last month that due to an incorrect monthly calculation. Mr. Walsh referred to the DROP calculations of 36 months as best earnings accrued. The corrections were made to the two DROP Plan (#1 & #2). A brief discussion was held and the following motion was made:
Motion by Mr. Christensen, seconded by Mr. Thompson to approve as presented the retirements for a. #1 - 8.
Motion was voted; Motion was unanimously approved.
9. Withdrawal of Contributions – None
b. Approval of Investment Policy Statement – OPEB Trust
Mr. Walsh advised the Board that with Mr. Kachmar assistance the Investment Policy Statement for the OPEB Trust was reviewed. After a brief discussion the following motion was made:
Motion by Ms. Rossi, seconded by Mr. Christensen to accept as presented the Investment Policy Statement for the Retiree Benefit Trust.
Motion was voted; Motion was unanimously approved.
6. REPORTS:
a. Summary of Portfolio Asset – April, 2009
b. Summary of Expenses – April, 2009
This was accepted as information for the Board members.
d. Fiduciary Investment Advisors, LLC – May 2009 Fixed Income Allocation & Performance Report
Mr. Kachmar reviewed the Fixed Income Allocation and Performance Report for May 2009. The Total Fixed Income is $42,029,348. Mr. Kachmar advised the Board that the transition from last month has done very well and Mr. Walsh asked if we should move the remaining 25% from DFA . Mr. Kachmar felt it would better to leave as is for now and watch the market.
e. 3 D Asset Management – Town of East Hartford Employee Retirement Plan Equity Component Monthly Review April 2009.
Mr. Connors distributed the Equity Component Monthly Review April, 2009. The starting balance was $70,932,655 and after transfer of Pension Contributions, Capital Appreciation, Income, the ending Portfolio balance was $81,243,801. The Period Return was 15.85%. Discussion followed on the report with Mr. Connors advising the Board that the market has made a come back in April and so far this month it was doing very well.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board/May 27, 2009 meeting $ 100.00
b. Convicer & Percy, LLP #21026 87.50
Motion by Mr. Thompson, seconded by Ms. Rossi to approve as presented for payment item # 7a & b.
The motion was voted; Motion was unanimously approved.
8. ADJOURNMENT:
There being no further business,
Motion by Mr. Christensen, seconded by Ms. Rossi to adjourn the regular meeting at 6:25 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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