SUBJECT TO APPROVAL AT NEXT MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, October 26, 2011
The meeting was called to order by Frank Vignati, Vice Chairman at 5:45 P.M. in the Majority Room, East Hartford Town Hall. ~In addition to Mr. Vignati there were:
PRESENT: Barbara-Ann Rossi, Member
Scott Thompson, Member
Eileen Powers, Member
ABSENT:~~~~~~~~~ Joseph Carlson, Chairman
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Thomas Dawidowicz, The Segal Company
Chris Kachmar, Fiduciary Investment Advisors
Wayne Connors, 3D Asset Management
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES
a. ~~Acceptance of Minutes of Special Meeting of September 21, 2011
Motion by Ms. Rossi, seconded by Ms. Powers to approve as presented the Minutes of the Special Meeting of September 21, 2011.
~
Motion was voted; Motion was approved, with Mr. Vignati and Mr. Thompson abstaining.
3. COMMUNICATIONS: None
4. ~OLD BUSINESS:
a. ~ The Segal Company – Proposal for COLA Study & Five Year Actuarial Experience Study
Mr. Walsh gave a brief overview of the COLA Study and the two proposals from The Segal Company, the 1% COLA to 1999 Retirees and the Five Year Actuarial Experience Study. Mr. Dawidowicz discussed the 1% COLA to 1999 retirees and authorization needed to develop the study for the cost to extend the COLA to Police, Fire and General retirees who retired during 1999 to the Pension Plan.
After a brief discussion the following motion was made:
Motion by Ms. Powers, seconded by Ms. Rossi to approve The Segal Company to do a study to extend a 1% COLA to employees who retired in 1999 at a cost not to exceed $3,000.
Motion was voted; Motion was unanimously approved.
Mr. Dawidowicz advised the Board members that at various meetings with the Town Council, it was suggested that a five (5) year Actuarial Experience Study should be performed for the Pension Plan. This plan should be reviewed to ensure the assumptions used in the valuation produce reasonable results. The methodology, timing and fee for completing this study were discussed. After an in-depth discussion, with the Board members voicing their concerns of the $30,000 fee for this study in this poor economic market, the following motion was made:
Motion by Mr. Thompson, seconded by Ms. Powers to TABLE the study for up to one (1) year and revaluate it in six (6) months.
Motion was voted; Motion was unanimously approved.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations:
1. Deanne Breton, BOE Early Retirement eff. 8/1/11
2. Mary Martin, Grants, Normal Retirement eff. 9/6/11
3. Carol Tuchay, Paraprofessional, Normal Retirement eff. 7/22/11
After a brief review the following motion was made:
Motion by Ms. Rossi, seconded by Mr. Thompson to approve the items 5. a. 1, 2 & 3 as presented.
Motion was voted; Motion was unanimously approved.
4. Trent Reopell request for Service-Connected Disability Ret. Eff. 9/1/11
EXECTUTIVE SESSION:
Motion by Mr. Thompson, seconded by Ms. Rossi to move into Executive Session at 6:05 PM for discussion of Independent Medical Evaluation for Trent Reopell’s request for Service-Connected Disability Retirement. Only Board members, Mr. Walsh and the clerk were present during Executive Session.
Motion was voted; Motion was unanimously approved.
Motion by Mr. Thompson, seconded by Ms. Rossi to move out of Executive Session at 6:15 PM. No votes were taken in Executive Session.
Motion was voted; Motion was unanimously approved.
After a brief discussion the following motion was made:
Motion by Mr. Thompson, seconded by Ms. Rossi to approve the Service-Connected Disability Retirement for Trent Reopell effective 9/1/11, based on the Independent Medical Evaluation by Dr. Erdil, but to table the final calculations to make sure the percentage calculation is correct.
Motion was voted; Motion was unanimously approved.
b. ~~~~Withdrawals of Contributions:
1. Kelly Dayfield, Police, resigned 7/10/11
Motion by Ms. Rossi, seconded by Mr. Thompson to approve as presented Kelly Dayfield withdrawal of contributions with interest.
Motion was voted; Motion was unanimously approved.
c. Death Benefit
1. Hemmerda Edwards, BOE, deceased 7/31/11
Motion by Ms. Rossi, seconded by Ms. Powers to approve as presented Hemmerda Edwards death benefit.
Motion was voted; Motion was unanimously approved.
d. Request from Mark Simmons requesting plan language change – COLA
Mr. Walsh advised the members that Mr. Simmons request would be addressed in the proposal from the Segal Company 1% COLA for 1999 retirees. After a brief discussion it was recommended that Mr. Simmons be sent a letter advising him of the study. Mr. Walsh will send the letter.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~Summary of Portfolio Asset – September 2011
- Summary of Expenses - September 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 September 30, 2011 to the Board. The report reflected the Fixed Income Composite has a market value of $64,005,355 with a 7.3% return since inception of 1/1/09. Mr. Kachmar spoke on an Economic Review and advised the Board on the impact of the debt crisis in Europe and the effect it has on Pension Plan performance. A brief discussion followed.
4. ~3 D Asset Management Report
Mr. Connors, 3D Asset Management distributed the East Hartford Pension Report as of September 30, 2011 on the Equity portion and also distributed an Equity Index Periodic Performance review and discussed the month of September and the crisis in the European countries and the effect on Wall Street. The ending market value was at $98, 008,823 and this was a -13.81% return for the year to date and a 13.96% return since inception (11/3/08). Brief discussion followed with Mr. Connors advising the Board members that so far the month of October has been better and next month’s report will reflect the comeback.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – September 2011
- Summary of Expenses – September 2011
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of September 30, 2011~
The OPEB Trust report indicated the Market Value at $1,889,503 with an 8.5% return since inception of 7/01/09. A brief discussion followed.
Mr. Kachmar distributed a “Cash Flow Worksheet” dated October 21, 2011 showing the DFA’s performance and recommended to stay as is for now and review again in January 2012.
- 3 D Asset Management Report as of September 30, 2011
Mr. Connors advised the Board that the OPEB Trust had a similar month as the Equity portion with a Market Value at $1,997,385 with a -17.67% return for the end of September 2011. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – October 26, 2011 ~~~~~~~~~~~~~~$ ~100.00
b. The Segal Company, Inv. #170160 15 benefit calculation 2,625.00
c. The Segal Company, Inv. #170158 actuarial work not in agreement 2,432.75
d. The Segal Company, Inv. #170930 quarterly invoice (7//11 – 9/11) 7,675.00
e. FIA, Inv. #3521103, quarterly invoice (7//11 – 9/11) 8,750.00
Motion by Ms. Powers, seconded by Ms. Rossi to approve as presented for payment items # 7. a. – e.
Motion was voted; Motion was unanimously approved.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Ms. Rossi, seconded by Mr. Thompson to adjourn the regular meeting at 6:50 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
| 