TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, February 24, 2010
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: Scott Thompson, Member
Frank Vignati, Member
ABSENT: Barbara-Ann Rossi, Member
Eileen Powers, Member
ALSO PRESENT: Michael Walsh, Finance Director
Thomas Dawidowicz, The Segal Company
Joshua D. Timm, The Segal Company
Wayne Connors, 3D Asset Management
John O’Connell, 3D Asset Management
Christopher Kachmar, FIA
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of January 27, 2010
Motion by Mr. Vignati, seconded by Mr. Thompson to approve the Minutes of the Regular Meeting of January 27, 2010.
The Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
- Mr. Walsh advised the Board that Mayor Currey has released the 2010/11 Proposed Budget and it is on the Town’s website for reviewing.
- Mr. Walsh advised the Board that he has received an email from GFOA and their desire to discuss changes to the Plan.
- Mr. Walsh advised the Board of the upcoming budget meeting with the Town Council on Saturday Feb. 27, 2010 as it pertains to Pension and Retiree Benefits. Members are welcome to attend the meeting.
- Mr. Carlson discussed the February 22, 2010 letter that Board members received from Police Officer Otto Fowich regarding a request for an opinion on his upcoming DROP Retirement. Discussion was held on this request and it was recommended to refer request to Human Resources as this request has been done in the past. The following motion was made:
Motion by Mr. Vignati, seconded by Mr. Thompson to request Human Resources to respond to Officer Fowich’s request on his DROP Retirement.
Motion was voted; Motion was unanimously approved.
4. OLD BUSINESS: None
5. NEW BUSINESS:
a. Retirements, Final Calculations, Withdrawal of Contributions:
1. Retirements:
a. DeEtt Farnham, BOE, Early Retirement eff. 12/28/09
b. Wayne Farnham, BOE, Early Retirement eff. 12/28/09
2. Withdrawal of Contributions:
a. Kimberly Askew, Police Department, terminated 6/9/09
Motion by Mr. Vignati, seconded by Mr. Thompson to approve as presented the retirements for
#a - 1. a. & b. and #a. 2. a.
Motion was voted; Motion was unanimously approved.
b. Vote for new Secretary for Pension Board due to Mr. Christensen vacancy
Discussion was held on the need to replace the Secretary position for the Pension and Retiree Benefit Board with the resignation of Mr. Christensen.
Motion by Mr. Vignati, seconded by Mr. Thompson to appoint Ms. Rossi as Secretary for Pension and Retiree Benefit Board.
Motion was voted; Motion was unanimously approved.
Mr. Carlson requested a letter of appreciation be sent to Mr. Christensen for his service to the Board.
6. REPORTS:
a. Pension:
1. Summary of Portfolio Asset – January 2009
2. Summary of Expenses – January 2009
This was accepted as information for the Board members.
3. Fiduciary Investment Advisors, LLC
Mr. Kachmar advised the Board that due to a power failure at his office today that he was submitting a Combined Equity and Fixed Income Portfolios report as of December 31, 2009. The report shows since inception of 01/01/09 the plan ending market value is $155,333,338 for a
29.1% Total Plan return.
Mr. Kachmar advised the Board members of Fiduciary Investment Advisors presentation at the upcoming Feb. 27, 2010 Budget session with the Town Council on the Pension & Retirees Benefit investments. A brief discussion followed.
4. 3D Asset Management –East Hartford Pension - Equity Component 1/31/10
Mr. O’Connor distributed the Equity Component Review as of January 31, 2010. Mr. O’Connor reported that the ending market value is at $98,392,235, with a loss of -3.77% for January 2010. The market is still performing well and the return since inception is at 18.21%. Brief discussion followed on the Asset Allocation and Asset Performance Review.
Mr. Connors advised the Board members of 3D Asset Management’s presentation at the upcoming Feb. 27, 2010 Budget session with the Town Council on the Pension & Retirees Benefit investments. A brief discussion followed.
b. OPEB Trust:
1. Summary of Portfolio Assets – January 2010
2. Summary of Expenses – January 2010
This was accepted as information for the Board members.
3. FIA – Town of East Hartford OPEB Trust – see report under item #6. a. 3.
4. 3D Asset Management – East Hartford OPEB - Equity Component 1/31/10 Report
Mr. O’Connor advised the Board that the investment for the OPEB for the quarter to date is $2,348,725 with a return since inception of June 22, 2009 return of 7.80%. Brief discussion followed.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board/Feb. 24, 2010 meeting $ 100.00
Motion by Mr. Vignati, seconded by Mr. Thomson to approve as presented for payment items # 7. a .
The motion was voted; Motion was unanimously approved.
- Mr. Dawidowicz of the Segal Company introduced Joshua Timm as a new associate who will be available to assist the Board from the Segal Company. Mr. Dawidowicz advised the Board members on what the Segal Company presentation will be at the upcoming Feb. 27, 2010 Budget session with the Town Council. Mr. Dawidowicz advised the members that at the request from the Mayor, he has changed the “Amortization Period” from the 25 years the Board had recommended to 30 years. Brief discussion followed on the presentation.
8. ADJOURNMENT:
There being no further business,
Motion by Mr. Thompson, seconded by Mr. Vignati to adjourn the regular meeting at 6:57 P.M.
The motion was voted; Motion was unanimously approved.
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