MINUTES APPROVED AT THE OCTOBER 24, 2012 MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, September 19, 2012
The meeting was called to order by Joseph Carlson, Chairman at 5:45 P.M. in the Second Floor Conference Room B, East Hartford Town Hall. ~In addition to Mr. Carlson there were:
PRESENT: Eileen Powers, Member
Frank Vignati, Member
Esther Clarke, Member
ABSENT:~~ Scott Thompson, Member
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ John O’Connell, 3D Asset Management
Wayne Connors, 3D Asset Management
Christopher Kachmar, Fiduciary Asset Advisors
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES:
a. ~~Acceptance of Minutes of Regular Meeting of July 25, 2012
Motion by Ms. Powers, seconded by Ms. Clarke to approve as presented the minutes of the Regular Meeting of July 25, 2012.
Motion was voted; Motion was approved, with Mr. Vignati abstaining.
3. COMMUNICATIONS:
a. Memo to Esther Clarke dated 8/16/12
Mr. Walsh reviewed the memo to Mrs. Clarke regarding the issue of retired police department personnel now working for Town/BOE. Attached to the memo is a copy of the 6/11/80 minutes from Retirement Board which set the policy allowing a retiree to work for the town (and by default, the BOE) on a part-time or seasonal basis. Also attached is a legal opinion from Corporation Counsel and Asst. Corporation Counsel from 12/6/94 on this same issue. With the Board’s attempt to consolidate the current 5 Retirement Plans by The Segal Company and create a “Qualified Plan” for sending to the IRS, Mr. Walsh feels there is confusion in the definition of part-time employee, he sent a memo to Bob Percy, the Board’s attorney, to review these opinions and create a consistent policy for the
Board to follow.
b. Gerald Scagliola, Police Dept., Request to withdraw six months of Buy-back:
Mr. Walsh advised the Board that he received a request from Mr. Scagliola, who has entered the DROP Plan and had requested and been allowed a Military Buy-back, has now requested a six month return of his Buy-back so he can work the additional six months with the Police Department. Since this will have no change to his pension and only change his retirement date, the six month Buy-back return will be calculated at that time.
4. ~OLD BUSINESS: None
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations
1. Jack Martin, Purchasing, Normal Retirement eff. 6/29/12
2. Mark Parys, Park Dept., Normal Retirement eff. 6/29/12
3. John Kershaw, Public Works, Normal Retirement eff. 6/29/12
4. Robert McDonald, Park Dept., Normal Retirement, eff. 6/29/12
Motion by Mr. Vignati, seconded by Ms. Powers to approve as presented the retirement calculation for items 5a. 1-4.
Motion was voted; Motion was unanimously approved.
b. ~~~~Withdrawals of Contributions: None
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~ Summary of Portfolio Asset – July & August, 2012
2. Summary of Expenses – July & August 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 August 31, 2012 for the Equity portion of the investments. The ending market value was at $119,925,483, this was a return of 3.39% for the fiscal year to date. The year to date return is 10.56% and the fund has a 16.19% return since inception (11/3/08). Mr. O’Connell advised the Board that the funds are doing well. A brief discussion was held various accounts in the portfolio.
Mr. Connors distributed a report titled Periodic Performance of Asset Classes (ending Aug. 31, 2012). Mr. Connors reviewed the portfolio and the diversification of the managers. A brief discussion followed.
4. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Kachmar distributed the East Hartford Fixed Income Report as of August 31, 2012 to the Board. Mr. Kachmar reviewed the Capital Markets Flash Report with the Board. The Fixed Income Composite has a market value of $64,389,357 and this was a gain of .5% for the month and a 2.1% gain for the quarter and 6.5% for the year to date. The return since inception of 1/1/09 is 7.6%. Mr. Kachmar advised that the Fixed Income portion is performing above the market indexes . A brief discussion followed.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – July & August 2012
- Summary of Expenses – July & August 2012
This was accepted as information for the Board members.
- 3 D Asset Management Report as of August 31, 2012
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $2,584,874 with a 17.44% return since inception of 6/22/09. The fund had a return of 3.98% for the fiscal year to date and a 10.28% for the trailing 12 months. A brief discussion followed on the upcoming withdrawal from the fund for the purpose of the payments of retirement medical expenses as of June 30, 2012.
- Fiduciary Investment Advisors, LLC Report ~as of August 31, 2012~
The OPEB Trust report indicated the Market Value at $1,336,859 with a 9.0% gain from July 2011 to Aug. 2012 and a 9.2% return since inception of 7/01/09. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – September 19, 2012 ~~~~~~~~~~~~~~$ ~100.00
b. The Segal Company, #189796 Benefit Calculations & 2 QDRO’s
dated 7/2/12 2,530.00
c. The Segal Company, #190487, supplemental/consulting services (Police
negotiations ended 6/30/12) dated 8/15/12 1,687.00
Motion by Ms. Powers, seconded by Mr. Vignati to approve as presented for payment items # 7. a. - c.
Motion was voted; Motion was unanimously approved.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mrs. Clarke, seconded by Ms. Powers to adjourn the meeting at 6:15 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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