MINUTES
HULL CONTRIBUTORY RETIREMENT BOARD MEETING
June 25, 2003
The regular meeting of the Hull Contributory Retirement Board, duly posted to be held in the Selectmen's Meeting Room Meeting Room, Town Hall, Hull, MA on the above date was called to order at 9:01 a.m. Present were Maurice Murphy, Chairman, Members Leonard Colten, Ann MacNaughton, and James Yacobucci, and Retirement Administrator Marcia Bohinc.
The Chairman recognized Chris McCabe in attendance at 9:05 for a full Board.
The Board read and attested to the minutes of the May 14, 2003 board meeting with one correction.
The Board signed all bill warrants for April 2003.
The Board signed the contributory payroll for May 2003.
Five retirees identified by PERAC as having failed to submit the required annual report of earnings, thereby facing suspension of retirement allowances, were invited to attend the meeting to be heard by the Retirement Board. None of the five appeared. The June 30, 2003 retirement checks will be held for all five.
Lenny Colten questioned if retiree Mr. John Clasby, retired with an increased pension as voted on in Town Meeting 2000, is entitled to the cost of living adjustment (COLA) provided by the retirement system. Jim Yacobucci made a motion to review Mr. Clasby's retirement, seconded by L. Colten, voted unanimously.
The Board reviewed and approved the retirement allowance changes for the following retired members:
Kenneth J. Resnick - Firefighter - change due to retroactive pay
Frederick E. Cox - Firefighter - change due to retroactive pay
John Clasby - Firefighter/Disability - change due to new contract and retroactive pay
Thomas Calorio - Firefighter/Disability - change due to retroactive pay
Everett W. Lutzy - Deceased, Option C
The Board reviewed without discussion the year-to-date trial balance and cash accounts' reconciliation.
Investments:
Prior to the meeting, the Treasurer's Office reported to the Board that the fiscal Year 2004 appropriation would be delivered in total on Thursday, June 26, 2003.
After considerable discussion regarding the investment of the appropriation, Maurice Murphy made a motion to use the appropriation to rebalance the three investments to 50% PRIT, 25% SSgA, 25% Freedom Capital. Chris McCabe seconded the motion. Ann MacNaughton, C McCabe, M. Murphy and J. Yacobucci voted yes, L. Colten voted no.
Additional discussion was held regarding the investment in the underlying assets within each investment company. It was agreed that the Board needs to establish short and long term goals for money management. C. McCabe made a motion to begin the search for a Financial Advisor. J. Yacobucci seconded the motion. In discussion, L. Colten stated that PRIM has the experts required to make the proper investment decisions, and part of the services provided is advice. J. Yacobucci pointed out that SSgA and Freedom also have investment advisors. A. MacNaughton agreed with both, however stated that the advice must be customized for the Hull Retirement System. A. MacNaughton, C McCabe, M. Murphy and J. Yacobucci voted yes, L. Colten voted no.
C. McCabe requested Marcia Bohinc to research the funding history of the Hull Retirement System to better understand the current funding position.
Regarding M. Bohinc's previous request for a written investment policy for the management of cash flow and meeting monthly obligations, M. Murphy made a motion to fund the monthly liability by rotating the draw down between the three investment companies. C. McCabe seconded the motion and the Board voted unanimously.
The compensation of the Retirement Administrator was on the June 17, 2003 meeting agenda of the Board of Selectman. L. Colten was made aware of this and attended the meeting to represent the Retirement Board. M. Murphy stated that the Retirement Board needs to be made aware of the issues ahead of time, and as a Board make a decision on how to proceed. C. McCabe stated that the Selectmen's Board did not follow protocol in placing the Retirement Board on the agenda without notice. With M. Murphy dissenting, the Board agreed that it was appropriate for L. Colten to represent them in this extraordinary situation. All agreed that in the future, the Board will meet and determine the any appropriate action.
The Board discussed in general sick leave buy back and whether it is considered regular compensation for retirement purposes. C. McCabe requested this be on the agenda for the July meeting, specifically to review the request of Police Chief Brooker's request to use his buy back as compensation, his contract with the Board of Selectman and the Retirement Board's counsel's opinion.
On a motion made by L. Colten and seconded by J. Yacobucci, the Board voted unanimously to accept liability for the Marjorie Kamman's service as a Teacher's Aide in Hull.
After a brief review of the Eligibility Requirements for membership in the Hull Retirement System, the Board requested M. Bohinc to draft simplified requirements for the July meeting. The Board will also review the procedure for accepting/denying liability for previous service at that time.
C. McCabe agreed to set up a meeting with the Hull Housing Authority to review past due appropriation payments, 2002 member deductions, and 2003 payables.
J. Yacobucci made a motion to obtain a credit card for the Retirement Board. This motion was seconded by L. Colten an voted yes by J. Yacobucci, L. Colten and A. MacNaughton. (Note: The Hull Retirement Board's Supplemental Travel Regulations, dated 12/23/2002 already permit a Board credit card.)
In accordance with PERAC memo #19/2003, the Board will research off-site storage facilities.
The Board discussed insurance/bonding needs. This issue is continued. Based on information provided at the Spring MACRS conference, M. Bohinc will contact MACRS for more direction.
The Board read all informational mail:
PERAC Memo #18/2003 - Authorization to Use or Disclose Protected Health Information
PERAC memo #19/2003 - Privacy and Security of Boards' Records, Documents and Communications
PERAC Memo #20/2003 - Eligibility for Membership of Elected Officials
Memo from Ralph White - Re: Local ERI, Pension Funding Adjustment
Various Investment Information
Retired State, Country and Municipal Employees Association of Massachusetts Newsletter - July 2003
PERAC Annual Report 2002
The next regular Board Meeting is scheduled for Wednesday, July 30, 2003 at 9:00 a.m. in the Selectman's Meeting Room.
The Hull Contributory Retirement Board meeting adjourned at 11:15 a.m.
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