SUBJECT TO APPROVAL AT THE NEXT BOARD MEETING
TOWN OF EAST HARTFORD
PENSION AND RETIREE BENEFITS BOARD
MINUTES
REGULAR MEETING
Wednesday, September 25, 2013
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: Esther Clarke, Member
Scott Thompson, Member
Robert Damaschi, Member
ABSENT:~ Frank Vignati, Member
ALSO PRESENT:~~~ Michael Walsh, Finance Director
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Ann Gineo, The Segal Company
Tim Baker, 3D Asset Management
Tom O’Connor, 3D Asset Management
Christopher Kachmar, Fiduciary Asset Advisors
ADD-ON: At the request of Chairman Carlson the following motion was made:
Motion by Mr. Damaschi, seconded by Mr. Thompson to add the following items to the agenda:
3. e. Emails from Town Council Chair Kehoe regarding COLA for certain retirees.
5. a. Request for Non-Service Connected Disability Retirement for Todd DelGazio.
7. b. Fiduciary Investment Advisors, ¼' ly payment $8,750.00.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
- PUBLIC PARTICIPATION: ~ None
2. ACCEPTANCE OF MINUTES:
a. ~~Acceptance of Minutes of Regular Meeting of August 28, 2013
Motion by Mr. Damaschi, seconded by Mrs. Clarke to approve as presented the minutes of the Regular Meeting of August 28, 2013.
Motion was voted; Motion was unanimously approved.
3. COMMUNICATIONS:
a. Copy of Aug. 29, 2013 email from Board to Scott Chadwick, Corporation Counsel
Mr. Walsh advised the Board that a response to the email has not been received from Corporation Counsel as yet.
b. Copy of Aug. 30, 2013 email regarding questions on police officer resignations
c. Retirements and Final Calculations:
1. Jacqueline Violette, BOE, Normal Ret. Eff. 7/05/13
2. Kathleen Bombardier, BOE Paraprofessional, Normal Ret. Eff. 8/01/13
3. Paul Zachorewitz, Public Works, Early Ret. Eff. 7/19/13
d. Withdrawals of Contributions:
1. Stacy-Ann Dew, Police Dept. Clerk, resigned 6/28/13
e. Emails from Town Council Chair Kehoe regarding COLA for certain retirees.
Discussion was held on the series of emails from Town Council Chair Kehoe based on a request from the widow of a former Fire Chief who was inquiring about the COLA for retirees who were retired before 1980. Mr. Walsh reviewed with the Board the need for another COLA study per union contracts and distributed a history of annual pensioner increases. An in-depth discussion was held on the study and the gap that still exists for certain retirees. Discussion was also held on the Experience Study being done by The Segal Company and due to Chairman Carlson being unavailable for the November meeting discussion was held on rescheduling the November meeting. The following motions were made:
Motion by Mr. Damaschi, seconded by Mr. Thompson to move the scheduled November 20, 2013 meeting to December 4, 2013 to discuss the Experience Study from The Segal Company .
Motion was voted; Motion was unanimously approved.
Motion by Mrs. Clarke, seconded by Mr. Thompson to request a costing out for the COLA Study to be prepared along with the Experience Study by The Segal Company.
Motion was voted; Motion was unanimously approved.
4. ~OLD BUSINESS: None
5. ~NEW BUSINESS:
a. Request for Non-Service Connected Disability Retirement for Todd DelGazio.
Executive Session:
Motion by Mr. Thompson, seconded by Mr. Damaschi to move into Executive Session at 6:00 pm with only Board members, Mr. Walsh and clerk present.
Motion was voted; Motion was unanimously approved.
Motion by Mrs. Clarke, seconded by Mr. Thompson to move out of Executive Session at 6:13 pm No votes were taken in Executive Session .
Motion was voted; Motion was unanimously approved.
Regarding the request for a Non-Service Connected Disability Retirement for Mr. DelGazio the following motion was made:
Motion by Mr. Thompson, seconded by Mrs. Clarke to send Mr. DelGazio for further medical evaluation based on the recommendation of the Independent Medical Evaluation from Dr. Erdil.
Motion was voted; Motion was unanimously approved.
6. ~~REPORTS: ~
a. ~~~~~Pensions:
~~~~~~ ~1. ~ Summary of Portfolio Asset – August 2013
2. Summary of Expenses – August, 2013
~~~
This was accepted as information for the Board members.
3. ~Fiduciary Investment Advisors, LLC Report ~~
Mr. Kachmar reviewed the East Hartford Fixed Income Report as of August 31, 2013 to the Board. Mr. Kachmar reviewed the Capital Markets Flash Report with the Board and stated that August was a difficult month for Fixed Income, but September so far has been up. The Fixed Income Composite has a market value of $70,552,840 and this was a -0.9% for the month and a -2.4% for the year to date. The return since inception of 1/1/09 is 5.9%. Mr. Kachmar advised that the Fixed Income portion is performing above the market indexes. A brief discussion followed.
4. ~3 D Asset Management Report
Mr. Baker and Mr. O’Connor, of 3D Asset Management discussed the East Hartford Pension Report as of August 31, 2013 for the Equity portion of the investments. The ending market value was at $126,252,622, this was a return of 1.74% for the quarter to date. The year to date return is 11.45% and the fund has a 16.07% return since inception (11/3/08). Mr. Baker advised the Board that the US markets are performing well and this is encouraging. A brief discussion was held various accounts in the portfolio.
b. ~~~~~OPEB Trust:
~~~~~~~1. ~ Summary of Portfolio Asset – August, 2013
- Summary of Expenses – August, 2013
This was accepted as information for the Board members.
- Fiduciary Investment Advisors, LLC Report ~as of August 31, 2013
The OPEB Trust report indicated the Market Value at $2,389,600 with a -1.0% for the one month return and a 6.2 % return since inception of 7/01/09. A brief discussion followed.
- 3 D Asset Management Report as of August 31, 2013
The OPEB Trust has a Market Value at $3,808,283 with a 17.04% return since inception of 11/03/08. The fund had a return of 10.55% for the year to date and a 15.7 for the trailing 12 months.
7. ~APPROVAL OF DISBURSEMENTS:
a. ~~~~Clerk for Pension & Ret. Benefit Board – September 25, 2013 ~~~~~~~ ~~~~~~$ ~100.00
b. FIA inv. #3521303 ¼' ly payment dated 9/30/13 8,750.00
Motion by Mrs. Clarke, seconded by Mr. Damaschi to approve as presented for payment items
# 7. a.& b.
Motion was voted; Motion was unanimously approved.
8. ~~~~~Adjournment: ~
There being no further business,
Motion by Mrs. Clarke, seconded by Mr. Damaschi to adjourn the meeting at 6:32 PM.
Motion was voted; Motion was unanimously approved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Respectfully submitted,
Janet Penney, Clerk
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