APPROVED BY BOARD at the April 28, 2010 meeting
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, March 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
Barbara-Ann Rossi, Member
Eileen Powers, Member
ABSENT: None
ALSO PRESENT: Michael Walsh, Finance Director
Thomas Dawidowicz, The Segal Company
John O’Connell, 3D Asset Management
Christopher Kachmar, FIA
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of February 24, 2010
Motion by Mr. Vignati, seconded by Mr. Thompson to approve the Minutes of the Regular Meeting of February 24, 2010 with correction on pg. 3 first paragraph “…..December 31, 2009…”
The Motion was voted; Motion was approved, with Ms. Rossi and Ms. Powers abstaining.
3. COMMUNICATIONS:
a. Letter to Police Officer Otto Fowich from Mayor Currey
b. Letter to Kurt Christensen
After a brief discussion the following motion was made:
Motion by Mr. Vignati, seconded by Ms. Rossi to purchase a plaque for Mr. Christensen in recognition of his service to the Pension and Retiree Benefits Board.
The Motion was voted; Motion was unanimously approved.
- At this time, Chairman Carlson welcomed Eileen Powers, new member of the Board and was introduced to those attending the meeting.
4. OLD BUSINESS: None
5. NEW BUSINESS:
a. Retirements, Final Calculations, Withdrawal of Contributions:
1. Retirements:
a. Carmel Kurth, BOE Paraprofessional, Normal Retirement eff. 1/29/10
Motion by Mr. Thompson, seconded by Ms. Rossi to approve as presented the retirement calculations for Carmel Kurth.
The Motion was voted; Motion was unanimously approved.
2. Withdrawal of Contributions: None
- At this point in the meeting, Mr. Thompson requested to go on the record concerning the Town Council’s change from the Board’s recommendation of the Cap of Actuarial Value of Assets of 120% to 130% during the 2010 – 2011 Budget session. Mr. Carlson advised the Board that Mr. Dawidowicz of the Segal Company would be addressing all the Board’s concerns on this matter at a later time at this meeting.
6. REPORTS:
a. Pension:
1. Summary of Portfolio Asset – February 2010
2. Summary of Expenses – February 2010
This was accepted as information for the Board members.
3. 3D Asset Management –East Hartford Pension - Equity Component 2/28/10
Mr. O’Connor distributed the Equity Component Review as of February 28, 2010. Mr. O’Connor reported that the ending market value is at $100,288,824, with a loss of -0.84% for February 2010. The market is performing well and the return since inception (11/3/08) is at 27.98%.
Mr. O’Connor reviewed the Cash Accounts and Asset breakdown for the benefit of the new member of the Board. Brief discussion followed on DFA and description of passive management of their firm.
4. Fiduciary Investment Advisors, LLC
Mr. Kachmar distributed the Performance Summary – Fixed Income report as of February 28, 2010. The report shows the Ending Market Value of $54,227,880 since inception of 01/01/09 for the Fixed Income Composite. This is a Year to Date gain of $981,181. Brief discussion followed.
b. OPEB Trust:
1. Summary of Portfolio Assets – February 2010
2. Summary of Expenses – February 2010
This was accepted as information for the Board members.
3. 3D Asset Management – East Hartford OPEB - Equity Component 2/28/10 Report
Mr. O’Connor gave a brief explanation of the OPEB Trust for the new member and advised the Board that the investment for the OPEB for the quarter to date is $2,424,820 with a return since inception of June 22, 2009 of 28.41%. Brief discussion followed.
4. Fiduciary Investment Advisors, LLC – East Hartford OPEB Trust
Mr. Kachmar distributed the Account Reconciliation OPEB Trust report for February 28, 2010 and advised the Board that since inception (7/1/09) the fund has gained $92,727 and is at $1,411,255. A brief discussion followed.
c. The Segal Company – July 1,2009 Valuation History
Mr. Dawidowicz, the Segal Company distributed a report showing the July 1, 2009 Valuation History and reviewed the Mayor’s and Town Council’s actions of changing the cap of actuarial value of assets as a percentage of market value of assets and the interest rate that was recommended. The Town Council increased the cap to 130% from the Board’s recommendation of 120%, but kept the interest rate at 8.25%, which the Segal Company will support. The Town Council acted to save the taxpayers a bigger pension contribution in this down economy. An in-depth discussion followed with Board members questioning this “cap increase”. Mr. Dawidowicz reassured the Board that this can be revisited in the future.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board/Mar. 24, 2010 meeting $ 100.00
b. Segal Company inv. #132173 - calculations & QDRO 2,490.00
Motion by Mr. Vignati, seconded by Ms. Rossi to approve as presented for payment items # 7. a . & b.
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 6:50 P.M.
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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