TO BE APPROVED AT THE NEXT BOARD MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, May 22, 2013
The meeting was called to order by Joseph Carlson, Chair at 5:45 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
ABSENT: Frank Vignati, Member
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ John O’ Connor, 3D Asset Management
Chris Kachmar, Fiduciary Investments Advisors
Richard Morrison, Retiree
- PUBLIC PARTICIPATION: ~None
2. ACCEPTANCE OF MINUTES:
a. ~~Acceptance of Minutes of Regular Meeting of April 24, 2013
Motion by Mrs. Clarke, seconded by Mr. Thompson to approve the minutes of the Regular Meeting of April 24, 2013.
Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
Mr. Walsh advised the Board that at the request of a taxpayer to the Mayor, on the Town’s website under the Finance Department, is a list of Town and Board of Education retirees/widows information on name, union and monthly and annual benefits.
4. ~OLD BUSINESS: None
5. ~NEW BUSINESS:
a. ~~~~~Retirements and Final Calculations: None
b. ~~~~Withdrawals of Contributions - None
c. Richard Morrison, Recalculation of Retirement Benefits
Mr. Walsh distributed emails between Mr. Thompson and the Finance Department regarding the issues of Fiscal vs. Pension Plan Years. Mr. Thompson had requested payroll information on a group of retirees that he was rechecking the calculations. Richard Morrison’s pension was miscalculated and this was due to a misunderstanding on when in the month someone retires. Mr. Walsh reviewed the issues that have been on-going with the Elizabeth Turi grievance and the issue of Mr. Morrison’s calculations. The issue of an employee retiring before the 25th of the month was discussed. This was a practice that was established around 1989 and has been historically how the Benefits Administrator calculates an employee’s benefits. Mr. Morrison advised the Board
that this is not stated in any of the Pension brochures and a fact of which many employees are not aware. Mr. Walsh presented a Memorandum of Acknowledgement for Board approval for the benefit of employees to use to determine final average salary for pension purposes. Mr. Thompson will approach the Unions and make them aware of this practice. After an in-depth discussion the following motion was made:
Motion by Mrs. Clarke, seconded by Mr. Thompson to adopt the Memorandum of Acknowledgement Concerning Method Used to Determine Final Average Salary For Pension Purposes as presented.
Motion was voted; Motion was unanimously approved.
d. Gerald Scagliola, 6 mos. Buyback return
Mr. Walsh advised the Board that Mr. Scagliola, who had a DROP Retirement and had requested 4 years of Military Buyback and has worked an extra 6 months and is due $2,938.57 for the buyback. A brief discussion followed. The following motion was made:
Motion by Mr. Thompson, seconded by Mrs. Clarke to approve as presented the 6 month return of $2,938.57 Buy-back for Gerald Scagliola.
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~~1. ~ Summary of Portfolio Asset – April, 2013
2. Summary of Expenses – April, 2013
~~~
This was accepted as information for the Board members.
3. Fiduciary Investment Advisors, LLC Report ~~~
Mr. Kachmar and Mr. O’Connell reviewed the Town of East Hartford Performance Summary as of April 30, 2013 with the Board. The combined total plan market value is $194,165,889 with a fiscal year to date return of $14.2% and 14.3% since inception of 01/01/09. A brief discussion followed.
Mr. Kachmar reviewed the East Hartford Fixed Income Report as of April 30, 2013. The Fixed Income Assets had a return of 1.2% for the month and has a market value of $67,166,410 and this was a gain of 2.0% for the year to date. The return since inception of 1/1/09 is 7.4%. A brief discussion followed.
4. ~3 D Asset Management Report
Mr. O’Connell, 3D Asset Management reviewed the East Hartford Pension Report as of April 30, 2013 for the Equity portion of the investments. The ending market value was at $127,260,488, the return was 1.69% for the quarter to date. The return is 10.30% for the year to date and the fund has a 17.10% return since inception (11/3/08). Mr. O’Connell reviewed the various asset classes with the Board. A brief discussion followed.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – April, 2013
- Summary of Expenses – April, 2013
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of April 30, 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.
4. 3D Asset Management Report as of April 30, 2013
Mr. O’Connell advised the Board that the OPEB Trust has a Market Value at $2,002,915 with an 18.74% return since inception of 6/22/09. The fund had a return of 10.84% for the fiscal year to date and a 1.71% for the quarter to date. A brief discussion followed.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – April 24, 2013 ~~~~~~ ~~~~~~$ ~100.00
Motion by Mr. Thompson, seconded by Mrs. Clarke to approve as presented for payment items # 7. a.
Motion was voted; Motion was unanimously approved.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mr. Thompson, seconded by Mrs. Clarke to adjourn the meeting at 6:40 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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