APPROVED AT THE SEPTEMBER 19, 2012 BOARD MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, July 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: Esther Clarke, Member
~~~~ Eileen Powers, Member
Scott Thompson, Member
ABSENT:~~ Frank Vignati, Member
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ John O’Connell, 3D Asset Management
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES:
a. ~~Acceptance of Minutes of Regular Meeting of May 23, 2012
b. Acceptance of Minutes of Regular Meeting of June 27, 2012
Motion by Ms. Powers, seconded by Mr. Thompson to approve as presented the minutes of the Regular Meeting of May 23, 2012 and the minutes of Regular Meeting of June 27, 2012.
Motion was voted; Motion was approved, with Mrs. Clarke abstaining.
3. COMMUNICATIONS:
Chairman Carlson distributed a report from Bloomberg regarding the California Public Employee Pension earning 1% on investments for the past year. The California State Teachers Retirement System, the second largest U.S. public pension with $150.6 billion earned 1.8 % return. Discussion followed on the assumed rate of return and its effect on costs. The E. H. Pension Board has been recommending dropping the assumed rate of return to 8% from 8.25%. A brief discussion followed.
Mr. Walsh welcomed new member to the Board, Mrs. Clarke and gave an oversight of the duties and responsibilities of Pension and Retiree Benefits Board members. Brief discussion was held on the current Actuarial Report and the change-over in 2006 for new employees that would fall in the General Employees Retirement Plan to a Defined Contribution Plan, instead of a Defined Benefit Plan. Mr. Walsh advised Mrs. Clarke of the 5 Retirement Plans (General Employees, Police, Fire, Dispatchers and Paraprofessionals). Mr. Walsh reviewed the investment advisors and their method of investing and the success that the Plan has had.
4. ~OLD BUSINESS: None
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations
1. Elizabeth Turi, Police Disp., Normal Retirement eff. 4/26/12
2. Irene Savoie, BOE Para., Normal Retirement eff. 6/20/12
3. Betty Seidman, BOE Para., Normal Retirement eff. 6/29/12
4. Christopher Foley, Fire, Final Calculations, Service Connected Disability
Retirement 4/29/12
b. ~~~~Withdrawals of Contributions:
1. Sandor Binkley, Police, resigned 6/30/12
Motion by Mr. Thompson, seconded by Ms. Powers to approve as presented the retirements and final calculation for items 5a. 1-4 and the withdrawal of contributions for 5.b. 1 .
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~ Summary of Portfolio Asset – June, 2012
2. Summary of Expenses – June 2012
~~~
This was accepted as information for the Board members.
3. ~3 D Asset Management Report
Mr. O’Connell, 3D Asset Management distributed the East Hartford Pension Report as of June 30, 2012 for the Equity portion of the investments. The ending market value was at $104,625,170, this was a loss of -3.76% for the past 12 months. Year to date return is 6.94% and the fund has a 15.95% return since inception (11/3/08). Mr. O’Connell gave an overview of the report for the newest member of the Board. A brief discussion was held various accounts in the portfolio.
4. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Goss was not available for the meeting and Mr. Walsh distributed the East Hartford Fixed Income Report as of June 30, 2012 to the Board. The Fixed Income Composite has a market value of $67,540,768 and this was a gain of 1.1% for the month and a 1.7% gain for the quarter and 4.9% for the 1 year. The return since inception of 1/1/09 is 7.3%. Mr. Walsh advised that the Fixed Income portion was made up mostly of bonds.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – June 2012
- Summary of Expenses – June 2012
This was accepted as information for the Board members.
- 3 D Asset Management Report as of June 30, 2012
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $1,065,479 with a 16.98% return since inception of 6/22/09. The fund had a return of 3.50% for the month of June and a -2.75% for the trailing 12 months. A brief discussion followed on the purpose of the OPEB Trust for payments of retirement medical expenses.
- Fiduciary Investment Advisors, LLC Report ~as of June 30, 2012~
The OPEB Trust report indicated the Market Value at $717,026 with an 8.2% gain from July 2011 to June 2012 and an 8.9% return since inception of 7/01/09. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – June 27, 2012 ~~~~~~~~~~~~~~$ ~100.00
b. The Segal Company, #187736 ¼’ly payment dated 7/2/12 7,675.00
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. Thompson, seconded by Ms. Powers to adjourn the meeting at 6:30 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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