TO BE APPROVED AT THE NEXT BOARD MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, March 27, 2013
The meeting was called to order by Frank Vignati, Vice Chairman at 5:45 P.M. in the Second Floor Conference Room B, East Hartford Town Hall. ~In addition to Mr. Vignati there were:
PRESENT: Esther Clarke, Member
Scott Thompson, Member
ABSENT:~ Joseph Carlson, Chair
Eileen Powers, Member ~
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wayne Connors, 3D Asset Management
Chris Kachmar, Fiduciary Investments Advisors
Thomas Dawidowicz, The Segal Company
Robert Percy, Esq., Convicer, Percy, & Green, LLP
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES:
a. ~~Acceptance of Minutes of Regular Meeting of February 27, 2013
Motion by Mr. Thompson, seconded by Mr. Vignati to approve the minutes of the Regular Meeting of February 27, 2013.
Motion was voted; Motion was approved, with Mrs. Clarke abstaining.
3. COMMUNICATIONS: None
Motion by Mrs. Clarke, seconded by Mr. Thompson to add an addendum to the agenda under item #7.c. “FIA Invoice #3521301 for $8,750.00.
Motion was voted; Motion was unanimously approved.
4. ~OLD BUSINESS:
a. Attorney Percy draft of consistent policy for all Retirement Plans – Tabled
Attorney Percy distributed copies of amendments to both the Defined Contribution and the Defined Benefit Retirement Plans. In-depth discussion was held on the policy changes and the Board members discussed the definition and impact of Part-time and Full-time employees. After these discussions Atty. Percy stated he would have the final draft for the April meeting.
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations: None
b. ~~~~Withdrawals of Contributions - None
c. Pre-retirement Death Benefit – Officer Paul Buchanan
Mr. Walsh discussed the Pre-retirement Death Benefit for Officer Paul Buchanan and after a brief discussion the following motion was made:
Motion by Mrs. Clarke, seconded by Mr. Thompson to approve the Pre-retirement Death Benefit for Officer Paul Buchanan.
Motion was voted; Motion was unanimously approved.
d. Actuarial Assumption Study – The Segal Company
Mr. Dawidowicz, The Segal Company distributed the March 19, 2013 proposal for a Five-Year Actuarial Experience Study that was requested by the Board and Town Council. Segal has prepared this proposal to review the plan experience over the period July 1, 2008 through June 30, 2013. The cost of this study will be $31,000 and they will start with the data for the July 1, 2013 actuarial valuation and anticipate completion in approximately 10 – 12 weeks. After an in-depth discussion the following motion was made:
Motion by Mr. Thompson, seconded by Mrs. Clarke to approve The Segal Company to do the Five Year Actuarial Assumption Study at a cost of $31,000.
After a brief discussion the amended motion was made:
Motion by Mr. Thompson, seconded by Mrs. Clarke to amend the motion to include authority for Mr. Walsh to sign off on the proposed study when received from The Segal Company.
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~ Summary of Portfolio Asset – February, 2013
2. Summary of Expenses – February, 2013
~~~
This was accepted as information for the Board members.
3. ~3 D Asset Management Report
Mr. Connors, 3D Asset Management distributed the East Hartford Pension Report as of February 28, 2013 for the Equity portion of the investments. The ending market value was at $123,008,075, the return was 5.13% for the quarter to date. The return is 9.86% since 7/1/12 and the fund has a 16.52% return since inception (11/3/08). Mr. Connors advised the Board that US Markets were performing very well for the Equity portion. A brief discussion was held on the asset classes.
4. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Kachmar distributed the East Hartford Fixed Income Report as of February 28, 2013. The Fixed Income Assets had a return of 0.5% for the month and has a market value of $66,193,626 and this was a gain of 5.0% for the year to date. The return since inception of 1/1/09 is 7.4%. A brief discussion followed.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – February, 2013
- Summary of Expenses – February, 2013
This was accepted as information for the Board members.
- 3 D Asset Management Report as of February 28, 2013
Mr. Connors advised the Board that the OPEB Trust has a Market Value at $1,905,414 with an 18.06% return since inception of 6/22/09. The fund had a return of 9.78% for the fiscal year to date and a 5.43% for the quarter to date. A brief discussion followed.
- Fiduciary Investment Advisors, LLC Report ~as of February 28, 2013
Mr. Kachmar advised the Board members that the OPEB Trust has good returns and the report indicated the Market Value at $1,210,188 with a 4.2% gain for the year to date and an 8.5% return since inception of 7/01/09. This fund is outperforming the benchmark. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – January 23, 2013 ~~~~~~ ~~~~~~$ ~100.00
b. Convicer, Percy, & Green #28078 invoice dated 3/5/13 455.00
c. FIA, inv. #3521301 ¼’ly (01/01/13 – 03/31/13) 8,750.00
Motion by Mr. Thompson, seconded by Mrs. Clarke 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 Mrs. Clarke, seconded by Mr. Vignati to adjourn the meeting at 6:40 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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