SUBJECT TO APPROVAL AT THE NEXT BOARD MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, February 27, 2013
The meeting was called to order by Joseph Carlson, Chairman at 5:42 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
Eileen Powers, Member
ABSENT: None
ALSO PRESENT: Michael Walsh, Finance Director
John O’Connell, 3D Asset Management
Michael Goss, Fiduciary Investments Advisors
Thomas Dawidowicz, The Segal Company
Robert Percy, Esq., Convicer, Percy & Green, LLP
1. PUBLIC PARTICIPATION: None
2. ACCEPTANCE OF MINUTES:
a. Acceptance of Minutes of Regular Meeting of January 23, 2013
Motion by Mr. Vignati, seconded by Mr. Thompson to approve the minutes of the Regular Meeting of January 23, 2013.
Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
Mr. Walsh advised the Board members on the following:
- July 1, 2012 Actuarial Valuation ~– The Segal Company
Board members reviewed a 2/27/13 letter from The Segal Company. They updated the actuarial valuation that was previously presented to Town Council and were present at the meeting to discuss their findings.
Motion by Mrs. Clarke, seconded by Mr. Thompson to add this to the agenda as item 5c.
Motion was voted; Motion was unanimously approved.
4. OLD BUSINESS:
a. Attorney Percy reviewed a legal opinion he drafted to create a consistent policy for all Retirement Plans with respect to rehired employees. Discussion was held and Attorney Percy was directed to draft a policy, based on is legal opinion, to address the parameters of part-time employment and to clarify the ability of a rehired employee who retires under the defined benefit plan to return to town employment under the defined contribution plan. The policy draft will be available for the March meeting.
5. NEW BUSINESS:
a. Retirements and Final Calculations:
1. Linda Campise, BOE Custodian, Normal Retirement eff. 10/31/12
Motion by Mr. Vignati, seconded Ms. Powers by to approve item # 5. a.1.
Motion was voted; Motion was unanimously approved.
2. Juan Reyes, Library Custodian, Early Retirement eff. 12/16/12
Motion by Mr. Vignati, seconded Ms. Powers by to approve item # 5. a.2.
Motion was voted; Motion was unanimously approved.
3. Holly Wells, Counseling Coordinator, Normal Retirement eff. 12/28/12
Motion by Mr. Vignati, seconded Ms. Powers by to approve item # 5. a.3.
Motion was voted; Motion was unanimously approved.
4. Michael Senerth, Military Buy-Back
Motion by Mr. Vignati, seconded Ms. Powers by to approve item # 5. a.4.
Motion was voted; Motion was unanimously approved.
b. Withdrawals of Contributions:
1. Eileen Faust
Motion by Mr. Vignati, seconded Ms. Powers by to approve item # 5. b.1.
Motion was voted; Motion was unanimously approved.
c. July 1, 2012 Actuarial Valuation– The Segal Company
The Segal Company reviewed with the Board members the 2/27/13 letter that was in response to questions raised at the Town Council presentation. The Segal Company tweaked a few other valuation assumptions and funding methodologies to find other reasonable options for the Town Pension Plan. Discussion was held on the current funded status of the Pension Plan. After further discussion the following motion was made:
Based on the three alternative recommendations from The Segal Company, Motion was made by Mr. Vignati, seconded by Ms. Powers to recommend to the Town Council Alternative #2 which is an 8% interest rate, 4% salary scale, and 3.5% amortization increase (based on 27-year amortization) for a total contribution of $10,539,290 for the July 1, 2013 ~-June 30, 2014 fiscal year.
Motion was voted; Motion was unanimously approved.
6. REPORTS:
a. Pensions:
1. Summary of Portfolio Asset – January, 2013
2. Summary of Expenses – January, 2013
- This was accepted as information for the Board members.
3. Fiduciary Investment Advisors, LLC Report
3. Fiduciary Investment Advisors, LLC Report
Mr. Goss distributed the East Hartford Fixed Income Report as of January 31, 2013 and the Economic Review. ~A brief discussion followed on the Economic Review. ~The Fixed Income Assets had a return of 0% for the month and has a market value of $65,889,311 and this was a 0% return for the quarter and 0% for the year to date. The return since inception of 1/1/09 is 7.4%. A brief discussion followed. ~Mr. Goss advised the Board that January had generally stayed the same as the previous month.
4. 3 D Asset Management Report
Mr. O’Connell, 3D Asset Management distributed the East Hartford Pension Report as of January 31, 2013. ~The ending market value was at $123,322,199, the return was 4.3% for the month to date. ~The return is 11.85% since 7/1/12 and the fund has a 16.62% return since inception (11/3/08). ~A brief discussion followed.
b. OPEB Trust:
1. Summary of Portfolio Asset – January, 2013
2. Summary of Expenses – January, 2013
- This was accepted as information for the Board members.
3. Fiduciary Investment Advisors, LLC Report
According to the monthly flash report the OPEB Trust had good returns and the report indicated the Market Value at $1,209,430 with a 9.7% gain for the year to date and an 8.9% return since inception of 7/01/09. A brief discussion followed.
4. 3 D Asset Management Report
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $1,886,878 with a 18.15% return since inception of 6/22/09. ~The fund had a return of 13.69% for the fiscal year to date and a 4.39% for the quarter to date. A brief discussion followed.
7. Approval of Disbursements:
a. Clerk for Pension & Ret. Benefit Board – February 27, 2013 $ 100.00
b. The Segal Co. – Invoice 200734 – January 17, 2013 $ 2,490.00
Motion by Mr. Vignati, seconded by Ms. Powers to approve as presented for payment items # 7. a. & b.
Motion was voted; Motion was unanimously approved.
8. ADJOURNMENT:
Motion by Ms. Powers, seconded by Mr. Thompson to adjourn the meeting at 6:51 PM.
Motion was voted; Motion was unanimously approved.
Respectfully submitted,
Tatia Lewis, Acting Clerk
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