SUBJECT TO APPROVAL AT NEXT MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFIT BOARD
MINUTES
REGULAR MEETING
Wednesday, February 22, 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: Frank Vignati, Member
Scott Thompson, Member
Eileen Powers, Member
ABSENT:~~~~~~~~~ Robert Damaschi, Member
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Thomas Dawidowicz, The Segal Company
John O’ Connell, 3D Asset Management
Sandra Phillips, Retiree
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sandra Phillips, retired employee from the Town, addressed the Board on her concerns with the different COLA’s for retirees and when they retired. Mrs. Phillips was most concerned for the employees who retired from 1999 to 2005, who don’t have a COLA. Board members addressed her concerns and explained the attempts of the Pension Board to provide all Retirees with a COLA and the process involved. This process takes time and has financial impact on the Town and its residents. Mrs. Phillips thanked the Board for hearing her concerns and urged them to provide the same percentage of COLA for all retirees.
2. ACCEPTANCE OF MINUTES
a. ~~Acceptance of Minutes of Regular Meeting of January 25, 2012
Motion by Mr. Vignati, seconded by Ms. Powers to approve as presented the Minutes of the Regular Meeting of January 25, 2012.
~
Motion was voted; Motion was approved, with Mr. Thompson and Ms. Powers abstaining.
3. COMMUNICATIONS: Mr. Walsh reported on the following:
- Mr. Walsh advised the Board members that the meeting on February 21, 2012 with the Town Council for the 2012-13 Recommended Budget with the Retirement Board Chair and their advisors went very well. The advisors provided a good presentation and Town Council members asked many questions.
- Mr. Walsh advised the Board members that the 2012 - 13 Recommended Budget will be available tomorrow on the Town’s website.
- Brief discussion was held on the Revaluation and its impact on the tax bills that residents will face this July. He advised the Board that 60% of the homeowners will see a reduction in their tax bills.
4. ~OLD BUSINESS:
a. Christopher Foley, Fire Dept., Request for Service-Connected Disability Retirement
EXECUTIVE SESSION:
Motion by Mr. Thompson, seconded by Ms. Powers to go into Executive Session at 6:05 PM with only Board members, Mr. Walsh and clerk in attendance.
The motion was voted; Motion was unanimously approved.
Motion by Mr. Vignati, seconded by Ms. Powers to come out of Executive Session at 6:10 PM .
No votes were taken in Executive Session.
The motion was voted; Motion was unanimously approved.
After a brief discussion there was no action taken on this matter.
b. Amended Meeting 2012 Calendar
The clerk advised the Board members of the change in the location for the September 19, 2012 meeting to the 2nd Floor Conference Room due to the Town Council meeting on the same night.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations:
1. Marilyn Cummings, BOE, Normal Retirement eff. 12/1/11
2. Barbara Pershan, BOE, Normal Retirement eff. 12/1/11
3. Theresa Godreau, BOE, Normal Retirement eff. 1/1/12
4. Carol Noel, Mayor’s Office, Normal Retirement eff. 1/1/12
5. Frank DeLuca, IT Manager, Early Retirement eff. 1/1/12
After a brief discussion the following motion was made:
Motion by Mr. Vignati, seconded by Mr. Thompson to approve as presented the retirements for items 5. a. 1 – 5.
Motion was voted; Motion was unanimously approved.
b. ~~~~Withdrawals of Contributions: None
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~Summary of Portfolio Asset – January 2011
- Summary of Expenses – January 2011
~~~
This was accepted as information for the Board members.
3. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Kachmar was not available for tonight’s meeting and Mr. Walsh distributed the East Hartford Fixed Asset Report as of January 31, 2012 to the Board. The Fixed Income Composite has a market value of $66,146,854 with a 7.6% 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 January 31, 2012 on the Equity portion of the investments. The ending market value was at $108,722,395 and this was a gain of 5.44% for the month and a loss of -1.32% for 12 months. The fund has a 17.64% return since inception (11/3/08). Mr. O’Connell advised the members that the fund is doing well but still effected by the downturn in the market from last year. Brief discussion followed on the Asset Allocation and the market for February so far.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – January 2012
- Summary of Expenses – January 2012
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of January 31, 2012~
The OPEB Trust report indicated the Market Value at $697,667 with a 2.5% gain for the quarter and a 9.3% return since inception of 7/01/09. A brief discussion followed.
- 3 D Asset Management Report as of January 31, 2012
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $1,072,272 with an 18.15% return since inception of 6/22/09. He advised the Board members that this fund was doing what it was set up to do and performing very well. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – February 22, 2012 ~~~~~~~~~~~~~~$ ~100.00
b. The Segal Co., Inv. #178215, COLA, dated 1/31/12 2,800.00
c. The Segal Co., Inv. #178216, calculations & 1 QDRO dated 1/31/12 4,065.00
d. The Segal Co., Inv. #178217, One Plan Document conversion
dated 1/31/12 15,000.00
e. Johnson Occup. (Dr. Erdil) Inv. #28252 735.00
After a brief discussion on the Segal Company “One Plan Document conversion the following motion was made:
Motion by Ms. Powers, seconded by Mr. Thompson to approve as presented for payment items # 7. a. - e.
Motion was voted; Motion was unanimously approved.
Mr. Dawidowicz addressed the Board members on the Town Council meeting on February 21, 2012 and a brief discussion was held on having an Experience Study done when the Plan is more stable.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mr. Thompson, seconded by Mr. Vignati to adjourn the regular meeting at 6:50 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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