MINUTES
HULL CONTRIBUTORY RETIREMENT BOARD MEETING
October 29, 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 9:02 a.m. Present were Maurice Murphy, Chairman, Members Leonard Colten, Ann MacNaughton, Chris McCabe and James Yacobucci, and Retirement Administrator Marcia Bohinc.
The Board read and attested to the minutes of the September 24, 2003 board meeting without correction.
The Board signed all bill warrants for October 2003.
The Board signed the contributory payroll for September 2003.
The Board signed the contributory payroll for October 2003.
The Board to reviewed and approved requests for Distribution of Accumulated Total Deductions for the following terminated members:
Carolyn McNeil - Termination Date - October 31, 2003
Distribution Amount: Contributions $22,560.82
Interest 335.28
Kristine Fairbanks - Termination Date - January 31, 1995
Distribution Amount: Contributions $874.43
Interest 0.00
Make Up Contributions
The Board reviewed, and on a motion by Jim Yacobucci and seconded by Chris McCabe, approved Sandie Grauds to make up a total of thirty (30) months of contributions. This make up is for the periods March 1, 1993 through December 31, 1993 (nine months) and January 1, 1997 through September 30, 1998 (twenty-one (21) months). The board previously approved a make up for thirty-six (36) months from January 1, 1994 though December 31, 1996.
Furthermore, because Ms. Grauds original hire date was March 1, 1993 and she was eligible at that time to become a member of the system, she should have been enrolled as an 8% member. Based on a 1997 Contributory Retirement Appeals Board (CRAB) ruling, J. Yacobucci amended his motion to include reducing Ms. Grauds rate of retirement deduction to 8%. Voted unanimously.
Maurice Murphy requested research regarding Ms. Grauds employment with the Hull school system and any related retirement membership.
The Board reviewed and on a motion by C. McCabe and seconded by J. Yacobucci, approved Janet White to make up a total of eighteen (18) months of contributions. This is for the period July 1984 until she became a member in March 1996.
The Board discussed that upon review of the Active Member files, several instances of the membership date being up to several months after the hire date have been found. They acknowledged that this situation will create requests for make up contributions as the members begin their retirement planning. Upon counseling for retirement, the members are being told that there is an opportunity to make up contributions for additional creditable service.
The Board received the results of the January 1, 2003 Actuarial Valuation from Lawrence B. Stone, Actuary, Stone Consulting, Inc.
The overview of the valuation results revealed the following:
1. There needs to be an increase in the contribution amount
2. There has been a significant actuarial asset loss
3. A change to the assumptions should be made
4. The cash position has worsened
5. The current unfunded liability (using the new assumptions) is 34%
C. McCabe made a motion, seconded by J. Yacobucci to accept the January 1, 2003 Actuarial Valuation, dated October 29, 2003 as prepared by Lawrence B. Stone, Actuary, Stone Consulting, Inc. Voted unanimously. The acceptance of this valuation includes the following:
1. Change of interest assumption from 8.25% to 8.00%
2. Change in salary assumption from 5.5% to 5.00%
3. Fiscal Year 2005 midyear payment will be $2,318,253 to be shared between the Town and the Housing Authority
4. The results of this valuation will be forwarded to PERAC with the FY05 appropriation data which is due October 31st
Additionally, Maurice Murphy made a motion and seconded by J. Yacobucci to have annual actuarial valuations performed until such time that the funded level has significantly increased and cash flow concerns have eased. Voted unanimously.
The Board reviewed without discussion the year-to-date trial balance and cash accounts' reconciliation.
Investments
The following investment materials were provided to the Board:
Fund Performance through September 30, 2003
SSgA and PRIT performance updates
PRIT - Summary of Plan Performance - Period Ending September 30, 2003
PERAC Financial Bulletin - October 2003
Freedom Capital Management, Client Update - Third Quarter 2003
Freedom Capital Management, LLC Portfolio Summary - September 30, 2003
The Board received an update on insurance:
Travelers application completed and sent to Cray-Dowd
William J. Cray, CLU will be at the November meeting to review application, policy and answer questions
Information presented at the fall MACRS conference will be presented to the Board in the November meeting
The Board reviewed and briefly discussed the Contributory Retirement Appeal Board (CRAB) decision regarding Motor Vehicle Regular Compensation with the following materials:
Memo from Michael Sacco dated October 1, 2003 reporting the Contributory Retirement Appeal Board (CRAB) decision
PERAC Memo #34/2003 - Regular Compensation and Motor Vehicle Usage Update
Commonwealth of Massachusetts, Division of Administrative Law Appeals, Decision September 30, 2003
Lenny Colton made a motion to hold a special meeting on November 4, 2003. The purpose of this meeting is based on a request from Police Chief Donald Brooker's legal counsel to be heard regarding a vote made by the Retirement Board on September 24, 2003. The agenda for the meeting will be to review Chief Brooker's contract of March 2002 with the Board of Selectmen relative to the components regarding regular compensation, and at the Chief's request, to review his status as a veteran under M.G.L. c. 32. Seconded by M. Murphy, voted unanimously. The Board has requested the attendance of their legal counsel at this meeting.
The Board requested the following research for the next regular meeting:
The protocol for Board members regarding contacting legal counsel
Overview of retirement boards of similar size relative to investment consultants and advice
The Board read all informational mail:
PERAC Audit Report - Hull Contributory Retirement System, January 1, 1997 - December 31, 1999: Reviewed without comment
PERAC Compensation Questionnaire - Reviewed without comment - M. Bohinc to complete and return
PERAC Memo #31/2003 - Tobacco Company List
PERAC Memo #32/2003 - Appropriation Data Due October 31, 2003
PERAC Memo #33/2003 - Update on Repeal of G.L. c.32 § 5(1)(e) - Spousal Retirement Provision
PERAC Memo #35/2003 - Investment Manager List
PERAC Memo #36/2003 - Update on Repeal of G.L. c.32 § 5(1)(e) - Spousal Retirement Provision
PERAC Memo #37/2003 - Update on Repeal of G.L. c.32 § 5(1)(e) - Spousal Retirement Provision
Memo from Ralph White - Re: Local ERI Update
Massachusetts Association of Contributory Retirement Systems, Inc. Financial Statements, June 30, 2003 and 2002
Retired State, County and Municipal Employees Association of Massachusetts - Newsletter-November 2003
The Babson Staff Letter - September 19, 2003
The Babson Staff Letter - October 3, 2003
The Babson Staff Letter - October 17, 2003
Various news items from Pensions & Investments - October 13
Carol E. Nesson announcement
Alliance Bernstein - Emerging Markets information
The next regular Board Meeting is scheduled for Wednesday, November 19, 2003, at 9:00 a.m. in the Selectmen's Meeting Room.
The Hull Contributory Retirement Board meeting adjourned at 11:50 a.m.
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