SUBJECT TO APPROVAL AT NEXT MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, January 25, 2012
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: Robert Damaschi, Member
Frank Vignati, Member
ABSENT:~~~~~~~~~ Scott Thompson, Member
Eileen Powers, Member
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 December 21, 2011
Motion by Mr. Vignati, seconded by Mr. Damaschi to approve as presented the Minutes of the Regular Meeting of December 21, 2011.
~
Motion was voted; Motion was unanimously approved.
- COMMUNICATIONS: Mr. Walsh reported on the following:
- FIA email reports sent to the Board members.
- Letter from Raymond Quinn regarding the 1% COLA to retirees and Mr. Walsh will respond to Mr. Quinn with a letter and copy of the Board minutes regarding the COLA.
- Mr. Walsh advised the Board of a request from a member of the Town Council in regard to the recent bond rating decrease that the State of Connecticut has incurred from Moody’s. Mr. Walsh advised the members of the situation. Brief discussion followed.
4. ~OLD BUSINESS:
a. ~ The Segal Company – 7/1/11 Actuarial Valuation - Preliminary Results
Mr. Dawidowicz, The Segal Company consultant reviewed the preliminary Actuarial Valuation as of 7/1/11. He stressed the recommendation for the Board to go with the 8% Interest Rate as outlined in the report. An in-depth discussion followed with the members agreeing with the recommendation and the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Damaschi to recommend the 8% interest rate to project liabilities and project net investment return as advised by The Segal Company.
The motion was voted; Motion was unanimously approved.
b. Christopher Foley, Fire Dept., Request for Service-Connected Disability Retirement
Mr. Walsh advised the Board members that Mr. Foley was seen on January 24, 2012 by Dr. Erdil and the report was not available for this month’s meeting. Mr. Walsh recommended sending Mr. Foley for a second Independent Medical Evaluation, as required per contract. After a brief discussion the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Damaschi to refer Mr. Foley for a second Independent Medical Evaluation.
The motion was voted; Motion was unanimously approved.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations:
1. Richard Morrison, Public Works, Normal Retirement eff. 12/15/11
2. Terrence Hickey, Public Works, Normal Retirement eff. 12/1/11
After a brief discussion the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Damaschi to approve as presented the retirements for Mr. Morrison and Mr. Hickey.
Motion was voted; Motion was unanimously approved.
b. ~~~~Withdrawals of Contributions:
1. Theresa Pereira, Dispatcher, resigned 10/31/11
After a brief discussion the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Damaschi to approve the contribution withdrawal for Ms. Pereira.
Motion was voted; Motion was unanimously approved.
c. Death Benefit:
1. Elizabeth Tucker, Tax Office, deceased 12/7/11
Motion by Mr. Vignati, seconded by Mr. Damaschi to approve the death benefit as presented for Elizabeth Tucker’s spouse.
.
Motion was voted; Motion was unanimously approved.
d. 2012 Meeting Calendar:
After a brief discussion on the month of September 2012 the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Damaschi to approve the 2012 Meeting Calendar as amended.
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~Summary of Portfolio Asset – December 2011
- Summary of Expenses – December 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 December 31, 2011 to the Board. Mr. Kachmar reviewed with the Board the fourth quarter and the past month. The Fixed Income Composite has a market value of $64,774,052 with a 7.1% return since inception of 1/1/09. A brief discussion followed on the allocations being on target and the $768,697 gain in the fund.
4. ~3 D Asset Management Report
Mr. Connors, 3D Asset Management distributed the East Hartford Pension Report as of December 31, 2011 on the Equity portion of the investments. Discussion was held on the S & P 500 index and its good performance. The ending market value was at $104,229,718 and this was a loss of -0.20% for the month and a loss of -5.29% loss year to date. The fund has a 16.19% return since inception (11/3/08). Brief discussion followed on the Asset Allocation and the market for January so far.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – December 2011
- Summary of Expenses – December 2011
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of December 31, 2011~
The OPEB Trust report indicated the Market Value at $680,754 with a 2.1% gain for the quarter and an 8.5% return since inception of 7/01/09. A brief discussion followed.
- 3 D Asset Management Report as of December 31, 2011
Mr. Connors advised the Board that the OPEB Trust has a Market Value at $1,010,900 with an 18.15% return since inception of 6/22/09. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – January 25, 2012 ~~~~~~~~~~~~~~$ ~100.00
b. The Segal Co., Inv. #176368, Quarterly payment dated 1/9/12 7,675.00
Motion by Mr. Vignati, seconded by Mr. Damaschi to approve as presented for payment items # 7. a. & b.
Motion was voted; Motion was unanimously approved.
Discussion was held on the upcoming February 21, 2012 meeting with the Town Council for 2012/13 budget discussions. The Segal Company, 3D Asset Advisors and Fiduciary Investment Advisors presented to the board their respective presentations. These presentations were discussed and recommendations were made by the members.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mr. Vignati, seconded by Mr. Damaschi to adjourn the regular meeting at 7:05 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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