SUBJECT TO APPROVAL AT NEXT MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, December 21, 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
Eileen Powers, Member
Robert Damaschi, Member
Frank Vignati, Member
ABSENT:~~~~~~~~~ None
ALSO PRESENT:~~~ Michael Walsh, Finance Director
Barbara-Ann Rossi
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Thomas Dawidowicz, The Segal Company
Wayne Connors, 3D Asset Management
John O’Connell, 3D Asset Management
Chris Kachmar, Fiduciary Investment Advisors
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Barbara-Ann Rossi was present as a former member and wanted to thank the Board for the cooperation and good working relations when she was a member of the Board. Chairman Carlson took the opportunity to thank Ms. Rossi for her years of service to the Board
2. ACCEPTANCE OF MINUTES
a. ~~Acceptance of Minutes of Special Meeting of November 16, 2011
Motion by Ms. Powers, seconded by Mr. Thompson to approve as presented the Minutes of the Special Meeting of November 16, 2011.
~
Motion was voted; Motion was approved, with Mr. Vignati and Mr. Damaschi abstaining.
Mr. Walsh introduced Mr. Robert Damaschi, the new member to the Board and gave a brief overall of the function of the Board. Board members and advisors were introduced to Mr. Damaschi.
4. ~OLD BUSINESS:
a. ~ The Segal Company –1% COLA Study Retirees of 1999 & 7/1/11 Actuarial Valuation - Preliminary Results
Mr. Dawidowicz distributed the cost projection for the 1% annual cost-of-living (COLA) adjustments for retired plan members who retired in 1999. The twenty-eight (28) Town & Board of Education retirees increase in accrued liability is $450,517 and the increase in 2012-13 annual required contribution is $27,284. After an in-depth discussion the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Thompson to recommend as presented the 1% annual COLA for the Town and Board of Education employees who retired in 1999.
The motion was voted; Motion was approved with Ms. Powers opposed.
Mr. Dawidowicz distributed the “July 1, 2011 Actuarial Valuation – Preliminary Results” report to the Board. The results were based on the current 8.25% interest rate. The Segal Company recommends lowering the interest rate to 8% and those figures are also shown. In depth discussion followed on the actuarial valuation. Discussion was held on the upcoming 2012/13 Proposed Budget sessions with the Town Council and the Chairman will be in contact with the Council Chairman to set up a meeting in February to discuss the valuation. At this time the Board will table the valuation recommendation until the January meeting to allow the Board to review the material presented.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations:
1. Christopher Foley, Fire Dept., Request for Service-Connected Disability Retirement
Discussion was held on the request from Mr. Foley for a Service-Connected Disability retirement and the following motion was made:
Motion by Mr. Thompson, seconded by Ms. Powers to send Mr. Foley to Dr. Erdil for an independent medical evaluation.
Motion was voted; Motion was unanimously approved.
2. Richard Tuller, Public Works, Normal Retirement eff. 7/1/11
3. James Arsenault, Inspect. & Permits, Normal Retirement eff. 7/1/11
4. Robert Gamache, BOE, Normal Retirement eff. 10/1/11
Motion by Mr. Vignati, seconded by Ms. Powers to approve as presented the retirements for Mr. Tuller, Mr. Arsenault and Mr. Gamache.
Motion was voted; Motion was unanimously approved.
b. ~~~~Withdrawals of Contributions: None
c. Election of Officers:
Chairman
Motion by Mr. Vignati, seconded by Mr. Damaschi to nominate Mr. Carlson as Chairman.
Motion was voted; Motion was unanimously approved.
Vice Chairman
Motion by Ms. Powers, seconded by Mr. Thompson to nominate Mr. Vignati as Vice Chairman.
Motion was voted; Motion was unanimously approved.
Secretary
Motion by Mr. Vignati, seconded by Mr. Damaschi to nominate Mr. Thompson as Secretary.
Motion was voted; Motion was unanimously approved.
d. 2012/13 Requested Proposed Budget
Brief discussion was held on the 2012/13 budget figures and the elimination by the Town Council of the Professional Development line item. The following motion was made:
Motion by Mr. Thompson, seconded by Mr. Damaschi to recommend the Board budget stay the same as last year as follows:
- Commission Clerk $1,400
- Physician Medical Services $2,500
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~Summary of Portfolio Asset – November 2011
- Summary of Expenses - November 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 November 30, 2011 to the Board. Mr. Kachmar advised the Board that the past month has been rocky and he has no recommendation for changes to the managers at this time. The report reflected the Fixed Income Composite has a market value of $64,194,177 with a 7.0% return since inception of 1/1/09. A brief discussion followed.
4. ~3 D Asset Management Report
Mr. O’Connell, 3D Asset Management distributed the East Hartford Pension Report as of November 30, 2011 on the Equity portion. Discussion was held on the month of November’s returns and the ongoing crisis in the European countries. The ending market value was at $105,605,284 and this was a loss of -1.49% for the month and a loss of -5.10% loss year to date and a 16.75% return since inception (11/3/08). Brief discussion followed.
Mr. Connors, 3D Asset Management distributed the Global Economic Situation report and changes that they were implementing at this time. They were updating the target allocation for the Equity Portfolio with an increase to the US Stocks and a decrease to the International stocks.
The Emerging Market Small Cap was eliminated and an increase to the Emerging Markets Value. US Reits has a slight increase and eliminated International Reits with an increase to Diversified Commodities. These changes will lower the fund expenses and have a higher equity yield and lower expected volatility. A brief discussion followed.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – November 2011
- Summary of Expenses – November 2011
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of November 30, 2011~
The OPEB Trust report indicated the Market Value at $1,014,299 with an 8.2% return since inception of 7/01/09. A brief discussion followed on the purpose of the trust being used to fund the retiree’s medical expenses.
- 3 D Asset Management Report as of November 30, 2011
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $1,543,258 with an 18.76% return since inception of 6/22/09. He advised the Board that this fund is doing what it was set up to do with the Town drawing down cash on the account for the medical expenses of retirees. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – December 21, 2011 ~~~~~~~~~~~~~~$ ~100.00
b. Johnson Occ. Medicine (Dr. Erdil) for Trent Reopell IME 735.00
Motion by Mr. Thompson, seconded by Ms. Powers to approve as presented for payment items # 7. a. & b.
Motion was voted; Motion was unanimously approved.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mr. Vignati, seconded by Ms. Powers to adjourn the regular meeting at 7:00 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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