MINUTES
HULL CONTRIBUTORY RETIREMENT BOARD MEETING
May 25, 2005
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 Donald Brooker, Arthur Flavin and James Yacobucci and Retirement Administrator Marcia Bohinc.
On a motion by Jim Yacobucci, seconded by Lenny Colten, the Board attested to the minutes of the April 20, 2005 regular Board meeting without changes.
The Board signed all bill warrants for May 2005.
The Board signed the May 2005 contributory payroll.
The Board was informed of an agenda change regarding the 9:45 appointment with Firefighter Randolph Boothby concerning his possible disability retirement. Citing a conflict, Mr. Boothby’s attorney was not available on this date and has requested that the Board reschedule. Mr. Boothby’s attorney is insisting that the member has a right to a hearing under M.G.L. c.32 s. 16(3). This section provides the right of review by District Court after the certification of the Board’s decision, therefore not available to the member at this time. The criteria for a hearing at this stage in the process is age 55 with 15 or more years of creditable service, or 20 or more years of creditable service, neither of which the member has attained. However, the Board had agreed to meet with the
member and his attorney to gather facts regarding Mr. Boothby’s situation prior to the Board’s possible application for a medical panel, and give the member an opportunity to be heard. They also agreed to accommodate rescheduling this appointment.
Hull Fire Chief Frank Lyons was in attendance to review his submission of an involuntary disability application for Firefighter Boothby with the Board.
At 9:06, on a roll call vote, the Board went into executive session to discuss the reputation, character, physical condition or mental health of an individual. Roll call vote: Leonard Colten, yes; D. Brooker yes; A. Flavin, yes; J. Yacobucci, yes.
The board reconvened in open session at 9:50.
The Board reviewed both the buyback and make-up requests from Firefighter John King. Mr. King is requesting to purchase the service from May 28, 1988 through May 16, 1991, plus the additional 4.5 years of call firefighter service for a total creditable service of 7.4167 years, for which he received a distribution on July 15, 1991. The cost for the buyback is $9,347.23. Mr. King re-entered the retirement system on August 19, 1991 and transferred back to Hull in August 1993.
Mr. King also requested to make-up the service from his original hire date of January 18, 1988 though when he entered the system on May 28, 1988 for an additional 0.3333 years of service, at a cost of $940.26. Mr. King’s total buyback/make-up service request is 7.8334 years (7 years, 10 months).
It was noted that in the review of Mr. King’s payroll records, it was discovered that payroll provider ADP was not taking the required retirement deductions on his EMT stipend for the years 1988 through 1991. It is a requirement that deductions are taken from all ‘regular compensation’. This is an additional cost of $678.26.
Note: This finding will expand the review and corrections of the larger ADP payroll project to verify that all retirement deductions have been properly contributed.
Questioning whether there was a time limit to either request or complete a creditable service buyback after reinstatement in the system, the Board deferred the vote on approval of Mr. King’s requests until the next meeting.
The Board reviewed on make-up requests from the following school department employees:
Susan M. Belmarsh
Hire Date: September 19, 1995
Membership date – November 1, 2004
Hull High School Employee
Full time paraprofessional
Was erroneously kept out of the Retirement System
Requesting make up of 9 years, 7 months creditable service
Also qualifies for purchase of 2 years, 11 months military service credit
Cost at June 30, 2005 - $8,748.41
Beverly Clerkin
Hire Date: December 2, 1996
Membership date – November 1, 2004
Hull High School Employee
Full time paraprofessional
Was erroneously kept out of the Retirement System
Requesting make up of 7 years, 11 months creditable service
Cost at June 30, 2005 - $8,666.84
MaryAnne Unis
Hire Date: September 5, 2000
Membership date – September 6, 2004
Jacobs Elementary School Employee
Full time paraprofessional
Was erroneously kept out of the Retirement System
Requesting make up of 4 years creditable service
Cost at June 30, 2005 - $4,233.57
On a motion by J. Yacobucci and seconded by D. Brooker, all three make-up requests were granted by a unanimous vote.
The Board reviewed the current year-to-date trial balance, cash accounts’ reconciliation and budget analysis without discussion.
Investments
The following monthly investment materials were provided to the Board:
Investors Fund Performance – April 30, 2005
PRIM Board Update – April 30, 2005
PRIT – Summary of Plan Performance – April 30, 2005
The Board requested a comparison of the current rates of return of the assets that were liquidated from both SSgA and Freedom Capital to the rates of return of PRIT. This will be provided in a future meeting.
In response to the resignation of Board ex-officio Ann MacNaughton, A. Flavin nominated Donald Brooker to replace Ms. MacNaughton as Board vice-chair. Voted unanimously.
In another change, Board Administrator Marcia Bohinc was appointed as Town Accountant and Retirement Board ex-officio as of June 1, 2005. This appointment created an administrative opening, therefore the Board reviewed the retirement administrator job description, job posting and M.G.L. c. 32 §20(4)(d) and (d½). M. Bohinc agreed to continue as the administrator, albeit in a lesser capacity until a replacement is hired. She also stated a desire to remain actively involved in the oversight of the system on a day-to-day basis. After a brief discussion, D. Brooker made a motion that effective June 1, the Board authorize payment of the maximum stipend of $1,500 per annum pursuant to §20(4)(d) to M. Bohinc as the Town Accountant. Voted D. Brooker, yes; L. Colten,
yes; A. Flavin, yes; J. Yacobucci; no.
In a corresponding action, L. Colten made a motion that M. Bohinc receive her hourly rate for the hours worked for the retirement system as the ‘acting’ administrator, outside of her duties as the Town Accountant. Seconded by A. Flavin and voted unanimously.
Old Business:
Mr. Howard Moog approached the Retirement Board regarding his responsibility to repay the system for the excess retirement allowance he received from January 2002 through April 2003. A payroll deduction has been established to facilitate the repayment and will continue until the full repayment is made.
Follow-up – D. Brooker requested a letter be sent to the Selectmen and Town Counsel from the Retirement Board regarding action with the legislature on the motion passed at the Annual Town Meeting concerning the availability of the retirement system to certain elected officials. He also requested that it be known that the Retirement Board desires to participate in the process.
Other:
The Board requested a brief analysis of the cost of the election by mail versus establishing a polling place. This will be completed and forwarded to the Board.
Some of the M.G.L. Chapter 32 books are out of date. All members’ books will be reviewed for possible update or replacement.
The Board read all informational mail:
Amity Insurance Agency – Fidelity Policy
MACRS – Final program – Comprehensive Training and Annual Spring Conference
The PERAC Financial Bulletin – 1st Quarter 2005
PERAC Memo #16/2005 – Update on Private Letter Ruling Request on Pre-Tax Buybacks (with PERAC Memo #13/2002 and 840 CMR 15.05)
PERAC Memo #17/2005 – PERAC’s New E-Mail Addresses
PERAC Pension News – May 2005
Note from Retiree Ken Cowen
Articles – The Boston Globe, May 1, 2005 regarding teacher’s pension calculations
The Patriot Ledger, May 17, 2005 – Elected officials lose pay and benefits
The Patriot Ledger, May 18, 2005 – Voters U-turn to restore benefits
The Wall Street Journal, May 10, 2005 - Hedge Funds
The Wall Street Journal, May 17, 2005 – SEC Faults Pension Consultants for Conflicts
Babson Staff Letter, May 13, 2005
Babson Staff Letter, April 29, 2005
Babson Staff Letter, April 15, 2005
Corporate Governance – Second Quarter 2005
PERAC Emerging Issues Forum 2005 – June 28, 2005 - Information and registration
The Board rescheduled the next regular Board Meeting for Wednesday, June 27, 2005 at 9:00 a.m. in the Selectmen’s Meeting Room.
The Hull Contributory Retirement Board meeting adjourned at 10:55 a.m.
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