MINUTES
HULL CONTRIBUTORY RETIREMENT BOARD MEETING
March 24, 2004
The regular meeting of the Hull Contributory Retirement Board, duly posted to be held in the Selectmen's Meeting Room, Town Hall, Hull, MA on the above date was called to order at 9:00 a.m. Present were Leonard Colten, Chairperson, Members Chris McCabe, Ann MacNaughton and James Yacobucci, and Retirement Administrator Marcia Bohinc.
The Board read and attested to the minutes of the February 25, 2004 regular board meeting without correction.
The Board read and attested to the minutes of the March 10, 2004 special board meeting without correction.
The Board signed all bill warrants for March 2004.
Note: The section 59A reimbursement to the State Retirement Board for 2003 was given to Chris McCabe and Ann MacNaughton for payment by the Town, along with a copy of the reimbursement request for 2002. The Hull Contributory Retirement System had paid this reimbursement in at least the last three years ending with the 2001 billing, even though by statute payment is the Town's responsibility. C. McCabe will handle.
The Board signed the contributory payroll for February 2004.
The Board signed the contributory payroll for March 2004.
The Board signed the 2003 Annual Report to PERAC without discussion or comment.
On a motion by Jim Yacobucci, seconded by C. McCabe, the board approved a make-up contribution for Assistant Building Inspector William McLearn. The approval is for 24 months of creditable service from October 1983 through October 1985 in Community Development, for a total cost of $4,298.21, if paid by April 30, 2004.
Mr. McLearn is also requesting to make up creditable service for his time as a Call Fireman from the mid 1970's through 1989. Research is continuing to determine the years eligible for make-up. Service is granted as one year of creditable service for each five years of call service. The board will review any additional information at the next meeting.
The Board initiated the discussion of the fiscal year 2005 Cost of Living Adjustment (COLA) increase to be effective July 1, 2004. The board scheduled a public hearing for April 28, 2004 at 9:15 a.m. in the Selectmen's Meeting Room, Town Hall, Hull, MA. In preparation for this hearing, the board requested analysis of the financial impact of granting the Social Security Administration COLA of 2.1%, versus the increased COLA of up to 3% as permitted pursuant to M.G.L. c.32 §103(i), accepted by the Town in the Annual Town Meeting held on May 1, 2000.
The Board reviewed the current year-to-date trial balance and cash accounts' reconciliation without question.
Investments
The following investment materials were provided to the Board:
Investors Fund Performance - Updated through February 2004
PRIT - Summary of Plan Performance - February 29, 2004
PRIM Board Update - February 2004
SSgA - Total Return through February 2004
Consultant Process
A written presentation from Jeff Fabrizio, Wainwright Investment Counsel, LLC was provided to the Board without discussion, regarding a possible consultant search.
Old Business:
HHA Update
The board reviewed a letter from board attorney Michael Sacco dated March 1, 2004 to Paul Daley, Director Hull Housing Authority (HHA), regarding the outstanding receivables due from the HHA. Also reviewed was Mr. Daley's reply to Michael Sacco dated March 7, 2004 and a cover letter from Michael Sacco dated March 10, 2004. This series of letters was in response to a board directive to Attorney Sacco to demand payment to the Hull Retirement System for the overdue appropriations for fiscal years 2003 and 2004. (FY03 - $16,577, FY04 - $10,033)
At this time, the board requested the Hull Housing Authority Board attend the April Retirement Board meeting. The Retirement Board's expectation is for the HHA to present a plan of action to resolve the outstanding appropriations, as well as to promise payment of the fiscal year 2005 appropriation. ($10,896, which is due no later than December 31, 2004) A letter will be directed to the chair of the Housing Authority Board.
Other
The Board reviewed, without question or change, the revised language of the Domestic Relations Order (DRO) for retiree Robert W. Tompkins. The modification in the DRO is in paragraph 5 of the Order, relating to how the spousal benefit is to be calculated. If filed with the court, the revised order will increase the benefit for Mr. Tompkins, while reducing the benefit for his former spouse.
The Board discussed a request from Esther MacCaffrey regarding the possibility of increasing the life insurance benefit for retirees to $10,000 (up from the current $5,000). The Retirement Board does not have the authority to increase insurance benefits - it is a local decision to be made by the Town. C. McCabe stated that in the current fiscal environment, the Town would not be increasing benefits.
Election Update:
The Election Notice has sent to all members and retirees, published in the Hull Times and posted on local TV Channel 10 in accordance with the board approved schedule. At this time, one current member has requested nomination papers. All nomination papers are due by noon, Thursday, May 13, 2004.
The board discussed the annual salary increase for Marcia Bohinc. M. Bohinc made a brief presentation of her major accomplishments over the last twelve months, not limited to the completion of all administrative responsibilities on a part-time basis, including certain key responsibilities previously handled by outside professionals; taking immediate responsibility for preparing the monthly financial reporting to PERAC; 100% compliance with PERAC reporting requirements; complete review and audit of member and retiree files; assuming responsibility for the contributory payroll; and a financial recap of direct savings of close to $44,000 in expenses, while recovering an additional $10,000 in revenue. Given her performance and the savings to the system, she requested her position be changed from the current hourly
rate of $25 per hour, to a salaried rate with a guarantee of working 25 hours per week, until the necessary tasks were complete.
At 9:52, the board took a roll call vote to go into executive session to conduct strategy in preparation for negotiation with non-union personnel. They asked M. Bohinc to leave the session and designated A. MacNaughton as recording secretary. Roll call vote: Leonard Colten, yes; J. Yacobucci, yes, A. MacNaughton, yes; C. McCabe, yes.
The board reconvened in open session at 10:09 and requested M. Bohinc to rejoin the meeting.
M. Bohinc presented PERAC's Chief Retirement Administrator's Job Responsibilities and Compensation survey, in which Hull's administrator was in the lowest 6% of paid administrators in all systems in the Commonwealth, and in the lowest quartile for systems of the same size. After negotiation, the board offered M. Bohinc and increase of $6,000 in the first year, and $3,000 each year for the next two years, based on a 25 hour week, or $29.62 per hour, to be effective on July 1. The adjustment will be finalized in the April meeting.
The Board read all informational mail:
PERAC Pension News, March 2004
PERAC Memo #13/2004 - 2003 Annual Statement of Earned Income (91A)
PERAC Memo #14/2004 - Public Hearing and Comment Period on Proposed Regulation Amendments
PERAC Memo #15/2004 - Boston Retirement Board v. Contributory Retirement Appeal Board et al.
PERAC Memo #16/2004 - Mutual Fund Allegations (Continued)
Retired State, County and Municipal Employees Association of Massachusetts - FY05 COLA
Newsletter - MWRA Retirement System News - Winter 2004
Segal Bulletin - Public Sector Letter - February 2004
The Babson Staff Letter - February 27, 2004
The Babson Staff Letter - March 12, 2004
Additional Investment Information:
Polaris
Alliance Bernstein
Quant Funds
Middlesex Retirement System - Spring Seminar information
The next regular Board Meeting is scheduled for Wednesday, April 28, at 9:00 a.m. in the Selectmen's Meeting Room.
The Hull Contributory Retirement Board meeting adjourned at 10:29 a.m.
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