UNAPPROVED MINUTES
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, July 27, 2011
The meeting was called to order by Joseph Carlson, Chairman at 5:45 P.M. in the Majority Room, East Hartford Town Hall. ~In addition to Mr. Carlson there were:
PRESENT: Scott Thompson, Member
Barbara-Ann Rossi, Member
Frank Vignati, Member
Eileen Powers, Member
ABSENT:~~~~~~~~~ None
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Thomas Dawidowicz, The Segal Company
Wayne Connors, 3D Asset Management
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Chris Kachmar, Fiduciary Investment Advisors
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES
a. ~~Acceptance of Minutes of Regular Meeting of June 22, 2011
Motion by Mr. Thompson, seconded by Ms. Rossi to approve as presented the Minutes of the Regular Meeting of June 22, 2011.
~
Motion was voted; Motion was approved, with Ms. Powers and Mr. Vignati abstaining.
3. ~COMMUNICATIONS: - None
4. ~OLD BUSINESS:
a. ~ The Segal Company - 2011 Retiree COLA Study
Mr. Dawidowicz advised the Board members of the purpose for the COLA Study and reviewed the previous studies from 1972 to the last prepared in 2007. Discussion was held on the Exhibit I in regard to the retired employees who fall into the year of retirement of 1/1/99, who do not have a COLA. Discussion was held on The Segal Company preparing a study for this group. The following motion was made:
Motion by Mr. Vignati, seconded by Ms. Powers to request The Segal Company prepare an individual cost analysis for the Police, Fire and General Employee plans by providing a 1% COLA for Police retirees who retired on or after January 1, 1999 and before January 2, 2000, for Fire Retirees who retired on or after January 1, 1999 and before January 2, 2000, and for General retirees who retired on or after January 1, 1999 and before January 2, 2000.
Motion was voted; Motion was unanimously approved.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations:
1. Dean DePietro, Police, Normal Retirement eff. 4/22/11
2. Germaine Guimond, BOE, Normal Retirement eff. 5/1/11
3. Kevin Foran, Fire/General (Split Service), Normal Ret. eff. 6/2/11
4. Glenn Vincent, Fire, Normal Retirement, eff. 7/1/11
5. Timothy McConville, Police, DROP, eff. 6/23/11
6. Dario Tarascio, Police, DROP, eff. 6/23/11
7. Michael Morelli, Police, DROP, eff. 6/16/11
After a brief discussion on the Wellness Program the following motion was made:
Motion by Mr. Vignati, seconded by Ms. Rossi to approve as presented items 5. a.1 – 7.
Motion was voted; Motion was unanimously approved.
b. ~~~~~Withdrawals of Contributions:
1. Vivian Murdock, Para. BOE, resigned 6/1/11
2. Debra Megquier, Para. BOE, resigned 5/6/11
Motion by Mr. Thompson, seconded by Ms. Rossi to approve as presented the withdrawal of contributions for Ms. Murdock and Ms. Megquier.
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~Summary of Portfolio Asset – June 2011
- Summary of Expenses – June 2011
~~~
This was accepted as information for the Board members.
3. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Kachmar, Fiduciary Investment Advisors distributed the East Hartford Fixed Asset Report as of June 30, 2011 and advised the Board that Fixed Income Composite has a market value of $59,161,367 with a 8.3% return since inception of 1/1/09. Mr. Kachmar advised the Board members on the current debt issues in Washington and how it relates to the market. Discussion was held on the combined Equity and Fixed Income Portfolios performance. Brief discussion followed.
4. ~3 D Asset Management Report
Mr. Connors, 3D Asset Management distributed the East Hartford Pension Report as of June 30, 2011 Equity portion and advised the Board that the ending market value was at $119, 820,166 and this was a 7.33% return for the year to date and a 26.22% return since inception. Brief discussion followed with Mr. O’Connell discussing the Asset Allocation being on target and answering questions regarding the current market. Mr. Connors distributed the Brokerage Fees Report for last quarter to show trading transactions cost offset with fees by 3 D Asset Management.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – June 2011
- Summary of Expenses – June 2011
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of June 30, 2011~
Mr. Kachmar advised that the OPEB Trust has a Market Value at $1,328,493 with a 9.3% return since inception of 7/01/09. A brief discussion followed.
- 3 D Asset Management Report as of June 30, 2011
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $1,996,946 with a 28.19% return since inception of 6/22/09. A brief discussion followed on the $1.5 million that went back to the Town from the trust to cover the medical expenses for retired employees. This was the original purpose of the OPEB Trust. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – June 22, 2011 ~~~~~~~~~~~~~~$ ~100.00
b. ~~~The Segal Company, #164782 (quarterly 4/1/11 – 6/30/11) 7,675.00
c. The Segal Company, #164375 (benefit calculations) 2,490.00
Motion by Mr. Vignati, seconded by Ms. Rossi to approve as presented for payment items # 7. a. b. & c.
Motion was voted; Motion was unanimously approved.
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8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mr. Thompson, seconded by Ms. Rossi to adjourn the regular meeting at 6:58 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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