UNAPPROVED BY BOARD
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, November 17, 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: Barbara-Ann Rossi, Member
Scott Thompson, Member
ABSENT: Eileen Powers, Member
Frank Vignati, Member
ALSO PRESENT: Michael Walsh, Finance Director
Wayne Connors, 3D Asset Management
John O’Connell, 3D Asset Management
Thomas Dawidowicz, The Segal Company
PUBLIC PARTICIPATION: None
ACCEPTANCE OF MINUTES
a. Acceptance of Minutes of Regular Meeting of October 27, 2010
Motion by Ms. Rossi, seconded by Mr. Thompson to approve as presented the Minutes of the Regular Meeting of October 27, 2010.
The Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
a. Memo from M. Walsh re: Inquiry on Segal bills
Mr. Walsh reviewed the memo regarding the Inquiry on Segal Bills as discussed at the October meeting. Since this item is coming up under item #5c New Business, Mr. Walsh discussed the cost of pension contract negotiations in the past and included a May 12, 1998 from Corporation Counsel Office regarding responsibility for payment for services rendered to the Town by the Segal Company. Mr. Walsh advised the Board that a legal opinion was also obtained from Attorney Percy, the Pension Plan’s legal counsel, and his opinion was that such payments from the Plan was an operational expense. Mr. Thompson informed the Board that he believes the Fire Union paid the invoice for the cost out DROP proposals and not the Town as stated in Mr. Walsh’s memo.
In-depth discussion was held on the cost out. Since the Board is absent two members, it was decided to Table this to the December meeting. The following motion was made:
Motion by Mr. Thompson, seconded by Ms. Rossi to TABLE the decision of who pays the Segal costs to the December meeting, but to move forward with the Police negotiations.
The Motion was voted; Motion was unanimously approved.
4. OLD BUSINESS:
Executive Session:
Motion by Ms. Rossi, seconded by Mr. Thompson to move into Executive Session at 5:53 P. M. for the purpose of reviewing the Independent Medical Evaluation from Dr. Erdil on Warren Marsh, with only Board members, Mr. Walsh and Board Clerk in attendance.
The Motion was voted; Motion was unanimously approved.
Motion by Mr. Thompson, seconded by Ms. Rossi to move out of Executive Session at 6:03 P. M. No votes were taken in Executive Session.
The Motion was voted; Motion was unanimously approved.
1. Warren Marsh, BOE, Request for Non Service Connected Disability Retirement effective 9/15/10
Motion by Mr. Thompson, seconded by Ms. Rossi to approve as presented the request for Non Service Connected Disability Retirement for Mr. Marsh based on the Independent Medical Evaluation from Dr. Erdil.
The Motion was voted; Motion was unanimously approved.
5. NEW BUSINESS:
a. Retirements - Final Calculations: None
b. Withdrawal of Contributions: None
c. Request for Segal to cost-out Town proposal for Police Pension Plan Negotiations - Tabled
(see item #3 under Communications)
d. Segal Company 7/1/2010 Actuarial Valuation – Preliminary Results
Mr. Dawidowicz reviewed the July 1, 2010 Actuarial Valuation – Preliminary Results with the Board members. Discussion was held on the 8.25% and the 8.0% Interest Rate and its effect on the Plan. Mr. Dawidowicz discussed “asset smoothing” and that the market losses have depressed the actuarial investment return. Mr. Walsh advised the members that the Board makes a recommendation to the Mayor and the Mayor, as part of the Proposed Budget will make a recommendation to the Town Council as to the interest rate, but the Town Council will set the interest rate when they set the 2011-12 Budget. An in-depth discussion followed and the Board will review this item at an upcoming meeting.
6. REPORTS:
a. Pension:
1. Summary of Portfolio Asset – October, 2010
2. Summary of Expenses – October, 2010
This was accepted as information for the Board members.
3. 3D Asset Management –East Hartford Pension - Equity Component as of 10/31/10
Mr. O’Connell distributed the Equity Component Review ending October 31, 2010. Mr. O’Connell reported that the ending market value is at $113,855,654 and the return since 7/1/10 is at 19.06% and the last 12 months is at 23.09%. Mr. O’Connell advised the members that October was a good month and so far in November that it has been “choppy”, but it is still early in the month. A brief discussion followed on the Target Allocations and the Asset Class breakdown.
4. Fiduciary Investment Advisors, LLC - October 31, 2010 Monthly Flash Report
Mr. Kachmar was not in attendance but had sent the October 31, 2010 report and this was distributed to the Board for review.
b. OPEB Trust:
1. Summary of Portfolio Assets – October 2010
2. Summary of Expenses – October, 2010
This was accepted as information for the Board members.
3. 3D Asset Management – East Hartford OPEB - Equity Component October 31, 2010
Report
Mr. O’Connell distributed the East Hartford OPEB – Equity Component as of October 31, 2010 to the Board members. Mr. Connors advised the Board that the investment for the OPEB is $3,192,426 with a return since 7/1/10 of 18.32% and for the last 12 months of 22.25%. This is performing well and a brief discussion followed.
4. Fiduciary Investment Advisors, LLC – East Hartford OPEB Trust
The monthly Flash Report for the OPEB Trust as of October 31, 2010 was distributed for their review.
7. APPROVAL OF DISBURSEMENTS:
a. Clerk for Pension & Ret. Benefit Board November 17, 2010 meeting $ 100.00
Motion by Ms. Rossi, seconded by Mr. Thompson to approve as presented for payment items # 7. a.
The motion was voted; Motion was unanimously approved.
8. ADJOURNMENT:
There being no further business,
Motion by Mr. Thompson, seconded by Ms. Rossi to adjourn the regular meeting at 6:45 PM
The motion was voted; Motion was unanimously approved.
Respectfully submitted,
Janet Penney, Clerk
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