SUBJECT TO APPROVAL AT THE NEXT BOARD MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, December 19, 2012
The meeting was called to order by Joseph Carlson, Chairman at 5:47 P.M. in the Second Floor Conference Room B, East Hartford Town Hall. ~In addition to Mr. Carlson there were:
PRESENT: Esther Clarke, Member
Scott Thompson, Member
Frank Vignati, Member
ABSENT:~ Eileen Powers, Member ~
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ John O’Connell, 3D Asset Management
Frank Cassetta, Asst. Corporation Counsel
Santiago Malave, Human Resources Director
Sandy Franklin, Benefits Administrator
Elizabeth Turi, Retired Employee (Teamsters Union)
Steve Nettleton, Advisor to Ms. Turi
Brenda Cavin Ragno, Teamsters Union
~~~~~~~~~~~~~~~~~~~~~~~~~~~
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES:
a. ~~Acceptance of Minutes of Regular Meeting of November 28, 2012
Motion by Mrs. Clarke, seconded by Mr. Vignati to approve as presented the minutes of the Regular Meeting of November 28, 2012.
Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
a. Draft letter from Attorney Percy on review of pension documents
Mr. Walsh distributed the draft letter from Attorney Percy regarding his review of pension documents in regard to various practices and the need for revision. Mr. Walsh requested the Board members review the document and submit any questions or comments to him by January 10, 2013 for discussion at the January 23, 2013 board meeting.
b. Segal letter dated 12/18/12 regarding July 1, 2012 Actuarial Valuation – Preliminary Results
Mr. Walsh distributed the Segal Company July 1, 2012 Actuarial Valuation Preliminary Results from Thomas Dawidowicz, the Board’s Actuary. Mr. Walsh requested the Board members review the document for discussion at the January 23, 2013 meeting.
c. Fiduciary Investment Advisors site visit
Mr. Walsh advised the Board members of the upcoming visit to the Fiduciary Investment Advisors home office in Windsor prior to the regular scheduled Board meeting in January. This meeting will occur approximately at 4:00 PM and Mr. Walsh will be updating members in the coming weeks.
4. ~OLD BUSINESS:
a. Attorney Percy review of consistent policy for all Retirement Plans – No Action Taken
Mr. Walsh advised the Board that Attorney Percy will be at the January 2013 meeting.
b. Executive Session – regarding the retirement benefits of Elizabeth Turi
Motion by Mr. Vignati, seconded by Mr. Thompson to move into Executive Session at 5:58 pm to discuss the retirement benefits of Elizabeth Turi, with only Board members, Mr. Walsh and clerk in attendance.
Motion was voted; Motion was unanimously approved.
Motion by Ms. Clark, seconded by Mr. Vignati to move out of Executive Session at 6:21 pm , no votes were taken in Executive Session.
Motion was voted; Motion was unanimously approved.
c. Settle Elizabeth Turi retirement disagreement
Mr. Nettleton distributed additional information regarding Ms. Turi’s claim that her pension benefit was calculated incorrectly. The information was a list of payroll dates from 2006 to 2012 and various “hypothetical” employees’ retirement calculations. After hearing this further information the following motion was made:
Motion by Ms. Clark, seconded by Mr. Vignati for Elizabeth Turi’s retirement benefit to stand as previously calculated.
Motion was voted; Motion was approved 2 – 1, with Mr. Thompson voting no.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations - None
b. ~~~~Withdrawals of Contributions - None
c. 2012/13 Proposed Budget
After a review of the Board’s current budget and discussion on the 2012/13 Proposed Budget and in an attempt the show fiscal considerations, the Board members reduced the total budget by $100.
Motion by Ms. Clark, seconded by Mr. Thompson to approve the requested 2012/13 Pension and Retiree Benefits Board as follows:
Commission Clerk $1,200
Physician Medical Services 2,400
Total $3,600
Motion was voted; Motion was unanimously approved.
d. Proposed 2013 Meeting Calendar
After a brief discussion the following motion was made:
Motion by Mr. Vignati, seconded by Ms. Clark to approve as presented the 2013Meeting Calendar.
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~ Summary of Portfolio Asset – November, 2012
2. Summary of Expenses – November, 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 November 30, 2012 for the Equity portion of the investments. The ending market value was at $118,063,021, the return was 0.92% for the month to date. The return is 4.98% since 7/1/12 and the fund has a 15.56% return since inception (11/3/08). Mr. O’Connell advised the Board that November performance was recovering slightly. A brief discussion was held on the domestic and foreign markets and he reviewed the asset classes. Mr. O’Connor reported that so far the December market was good.
4. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Kachmar was not at the meeting and Mr. Walsh distributed the East Hartford Fixed Income Report as of November 30, 2012 to the Board. The Fixed Income had a return of 0.5% for the month and has a market value of $65,645,929 and this was a gain of .09% for the quarter and an 8.6% for the year to date. The return since inception of 1/1/09 is 7.6%. A brief discussion followed.
Mr. Walsh distributed the Town of East Hartford Other Post-Employment Benefit Program (OPEB) for July 1, 2011 Valuation prepared by Milliman, the plan actuaries. Brief discussion followed on the plan.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – November, 2012
- Summary of Expenses – November, 2012
This was accepted as information for the Board members.
- 3 D Asset Management Report as of November 30, 2012
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $2,050,086 with a 16.89% return since inception of 6/22/09. The fund had a return of 12.30% for the fiscal year to date and a 0.54% for the quarter to date. Mr. O’Connor advised the Board that 3D Asset Management would be issuing a check to the Town for the retirement benefits. A brief discussion followed.
- Fiduciary Investment Advisors, LLC Report ~as of November 30, 2012
According to the monthly flash report the OPEB Trust had good returns and the report indicated the Market Value at $1,360,759 with a 9.7% gain for the year to date and a 9.1% return since inception of 7/01/09. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
Add-on under #7c. FIA invoice #3521204 for quarterly payment of $8,750.00.
a. ~~~~Clerk for Pension & Ret. Benefit Board – December 19, 2012 ~~~~~~ ~~~~~~$ ~100.00
b. Robert Percy, Esq. #27490 invoice dated 11/20/12 857.50
c. FIA, inv. #3521204 quarterly payment dated 12/31/12 8,750.00
Motion by Mr. Vignati, seconded by Mr. Thompson to approve as presented for payment items # 7. a., b. & c.
Motion was voted; Motion was unanimously approved.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Ms. Powers, seconded by Mr. Vignati to adjourn the meeting at 7:16 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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