UNAPPROVED BY BOARD
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, November 18, 2009
The meeting was called to order by Joseph Carlson, Chairman at 5:43 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: Scott Thompson, Member
ALSO PRESENT: Michael Walsh, Finance Director
Thomas Dawidowicz, The Segal Company
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 28, 2009:
Motion by Mr. Vignati, seconded by Mr. Christensen to approve the Minutes of the Regular Meeting of October 28, 2009.
The Motion was voted; Motion was approved, with Mr. Christensen and Ms. Rossi abstaining.
3. COMMUNICATIONS: None
4. OLD BUSINESS: None
5. NEW BUSINESS:
a. Retirements, Final Calculations, Withdrawal of Contributions:
1. Retirements:
a. Dale Bycholski, Town Finance, Normal Retirement, eff. 10/02/09
b. Ronald Wilson, BOE Custodian, Normal Retirement eff. 10/02/09
Motion by Mr. Christensen, seconded by Ms. Rossi to approve as presented the retirements for
#a - 1. a. & b.
A brief discussion followed on the explanation of the calculation worksheet and letter from The Segal Company.
Motion was voted; Motion was unanimously approved.
2. Withdrawal of Contributions - NONE
b. Amendment to Retiree Benefit Trust
After a brief discussion on the request for documented authorization for trades, Attorney Percy prepared an amendment to the trust for Chairman Carlson’s signature.
Motion by Mr. Vignati, seconded by Mr. Christensen to approve the First Amendment to the Town of East Hartford Retiree Benefit Trust as presented.
Motion was voted; Motion was unanimously approved.
c. Proposed 2010 Schedule of Pension & Retiree Benefit Board Meetings
Motion by Mr. Christensen, seconded by Ms. Rossi to approve the 2010 Schedule of Pension & Retiree Benefit Board Meetings as presented.
Motion was voted; Motion was unanimously approved.
d. Election of Pension Board Officers – Chairman, Vice Chairman, Secretary:
Chairman:
Motion by Ms. Rossi, seconded by Mr. Christensen to nominate Mr. Carlson as Chairman for the Pension & Retiree Benefit Board.
Motion was voted; Motion was unanimously approved.
Vice Chairman:
Motion by Ms. Rossi, seconded by Mr. Christensen to nominate Mr. Vignati as Vice Chairman for the Pension & Retiree Benefit Board.
Motion was voted; Motion was unanimously approved.
Secretary:
Motion by Ms. Rossi, seconded by Mr. Christensen to nominate Mr. Vignati as Vice Chairman for the Pension & Retiree Benefit Board.
Motion was voted; Motion was unanimously approved.
d. Pension Plan Annual Valuation – The Segal Company
Mr. Dawidowicz distributed the Actuarial Valuation and Review as of July 1, 2009. Mr. Dawidowicz reviewed the Plan Population; Plan Assets and Plan Liabilities; Plan Actuarial Investment Experience; Funded Status and Town Contributions. An in-depth discussion was held on the report and the Town’s contribution for 7/1/09 – 6/30/10 ARC (Annual Required Contribution) is from 7/1/08 actuarial valuation and the 7/0/10 – 6/30/11 ARC is from 7/1/09 actuarial valuation. Discussion was held on assumption changes from 8.50% interest rate to 8.25% interest rate and the possibility of lowering the assumption rate in the future. Discussion was also held on the amortization of experience loss over 15 years, with the dollar amount increasing at a rate of 4% per year. The ARC
for July 1, 2009 was $8,188,649 and the contribution for July 1, 2010 is $12,176,884. The Board members discussed the impact on the Town’s taxpayers and ways to lessen the impact in the future. The Board members thanked Mr. Dawidowicz for his presentation.
6. REPORTS:
a. Pension:
1. Summary of Portfolio Asset – October 2009
2. Summary of Expenses – October 2009
This was accepted as information for the Board members.
3. Fiduciary Investment Advisors, LLC – September 30, 2009 and October 31, 2009 Fixed Income Reports:
Mr. Kachmar reviewed two Fixed Income Reports. The Plan Summary – Combined Equity and Total Fixed Income Portfolios as of 9/30/09 is $152,977,398. The Fiscal Year to Date is up 15.78% and Year to Date is 24.58%. As of 10/31/09 the Fixed Income Portfolio is $49,171,183 and the performance of the managers in comparison to the benchmark is doing well.
4. 3D Asset Management –East Hartford Pension - Equity Component 10/31/09
Mr. O’Connor distributed the Equity Component Review as of October 31, 2009. Mr. O’Connor reported that the ending market value is at $100,624,431. The market suffered a slight retrenchment in October but the Plan has still performed well. Discussion followed on the Asset Allocation and Asset Performance Review. Board members directed questions to Mr. O’Connor on “double dipping” in the market. A brief discussion followed.
b. OPEB Trust:
1. Summary of Portfolio Assets – October 2009
2. Summary of Expenses – October 2009
This was accepted as information for the Board members.
3. FIA – Town of East Hartford OPEB Trust October 31, 2009 - Asset Allocation
Mr. Kachmar distributed the OPEB Trust for October 31, 2009 – Fixed Income Allocation Report for PIMCO and Vanguard managers. The Total Fixed Income is $1,381,043 and the current allocation of 75 – 25 split is on target. Brief discussion followed.
4. 3D Asset Management – East Hartford OPEB - Equity Component 10/31/09 Report
Mr. Connors advised the Board that the investment for the OPEB for the quarter to date is $2,256,495 with a return since inception of June 22, 2009 return of 19.45%. This is the same story as the pension account with a slight downturn for the quarter. Brief discussion followed.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board/Nov. 18, 2009 meeting $ 100.00
b. The Segal Company, Inv. #125681 (13 calculations & 3 QDRO’s) 3,445.00
c The Segal Company, Inv. #125970 (see invoice description) 6,000.00
Motion by Mr. Vignati, seconded by Mr. Christensen to approve as presented for payment items # 7a, b.& c.
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 7:40 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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