MINUTES
HULL CONTRIBUTORY RETIREMENT BOARD MEETING
June 27, 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 9:02 a.m. Present were Leonard Colten, Chairperson, Members Marcia Bohinc, Donald Brooker and Arthur Flavin. Marcia Bohinc was also in the role of Retirement Administrator.
On a motion by Arthur Flavin, seconded by Donald Brooker, the Board attested to the minutes of the May 25, 2005 regular Board meeting with one addition.
On a motion by A. Flavin, seconded by D. Brooker, the Board attested to the minutes of the May 25, 2005 executive session without changes. The Board elected not to release the minutes of the session at this time due to the issue remaining unresolved.
The Board signed all bill warrants for June 2005.
The Board signed the June 2005 contributory payroll.
Each Board member received a copy of the Open Meeting Guidelines for review.
The Retirement Board was notified that three retirees had been sent a ‘Notification of Termination’ letter by the Public Employee Retirement Administration Commission (PERAC) for failure to submit the required annual report of earnings under G.L. c32, §91A for 2004. This section now requires that the retirement allowance be terminated, and cannot be reinstated until the retiree has complied with the reporting requirements. Prior to any termination of benefits, the retirees have the right to be heard by the Retirement Board.
All three were duly notified and given the opportunity to be heard before the Board at this meeting. Prior to the meeting, PERAC informed the Board that two of the three retirees were either in compliance or showed good cause. The third, retiree Richard Colton has not complied, and did not appear before the Board. The result is his retirement allowance will be terminated as of July 1, 2005. This termination will also result in the termination of his insurance benefits provided by the Town. The retiree will be notified of his rights under COBRA. Any allowances missed during the termination cannot be recovered.
Firefighter Randolph Boothby kept his 9:05 appointment with the Board and was represented by his attorney Mr. Paul Hynes. Also in attendance was Hull Fire Chief Francis Lyons. The purpose of this appointment was for the Board to grant Mr. Boothby’s request for a meeting, and for the Board to gather any additional facts regarding his possible disability retirement.
Mr. Hynes began by reminding the Board of Mr. Boothby’s rights to a hearing under M.G.L. c.32 §16(3). This section provides the right of review by District Court after the certification of the Board’s decision, therefore is not available to the member at this time. He acknowledged that 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 apply in this case. His concern centered on the point that Mr. Boothby be given his full rights in the disability process, and requested a hearing on the merits of the application. He specifically questioned why the ordinary, non-job related application is necessary and whether it is appropriate at this time given the unresolved
dispute between the Town and Mr. Boothby with the firefighter’s union.
Mr. Hynes wanted the Board to be aware that there was a long-standing arbitration dispute. Since early 2005, they have been waiting on decision from the arbitration hearing on the issue of whether Mr. Boothby should have been receiving benefits under M.G.L. c. 41 s111F. Mr. Boothby is seeking these benefits claiming his injury is a result being on duty, which his attorney states will make a difference in the causation question in the disability process. Because this decision is not known, Mr. Hynes questioned if the Chief’s application was premature. He asked why the Retirement Board is being brought into the process to make a determination on an involuntary ordinary disability while there is outstanding arbitration, that perhaps that the Retirement Board is just being drawn into a labor
dispute.
He went on to state that Mr. Boothby intends to file his own application for disability retirement, requesting a decision on both accidental and ordinary. The reason Mr. Hynes did not advise his client to previously file and why he has not filed at this time is that he did not want to use the Retirement Board to make the determination on the accidental disability. They chose to go forward on the arbitration case, and at resolution, Mr. Boothby will file his own application. Mr. Hynes claims that they need the arbitrator’s decision. They have been waiting approximately five months, and questions why not wait just a short time longer. He clarified that the only issue before the arbitrator is whether Mr. Boothby should be receiving benefits under §111F – is the reason Mr.
Boothby is currently not working related to his job with the Hull Fire Department.
Mr. Hynes requested the Board to consider two options:
1. Amend the involuntary application to include benefits under an accidental
disability, along with the ordinary, or
2. Table the application pending receipt of the arbitration.
In closing, Mr. Hynes reiterated that he feels that this is an employment dispute. They are close to a decision that he feels will resolve the causation aspect of the case. At that point, Mr. Boothby will exercise his right to the retirement process.
Chief Lyons stated that he filed the application based on a advise from Town Counsel after the arbitration hearing because Mr. Boothby could no longer work, that the long process of the disability process needed to be started.
The Board reviewed the purpose of the involuntary process and questioned the Town’s strategy for requesting the process at this time. The Board requested that Town Counsel appear at the next meeting to gather additional information prior to proceeding. They also requested that the Board’s counsel be questioned regarding the Board’s options at this point. Additionally, the importance of a thorough investigation of the facts surrounding the genesis of the injury was pointed out to the Board – the need to determine if the cause of the injury was job related since joining the Hull Fire Department has a great financial impact on both the member and the retirement system. It was also noted that causation is the Board’s decision. The outcome of the arbitration is not
relevant.
With this, the Board deferred their vote to convene a medical panel for disability applicant Randolph Boothby for at least one more month.
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 – May 31, 2005
PRIM Board Update – May 31, 2005
PRIT – Summary of Plan Performance – May 31, 2005
Hull Profile through 03/31/2005
Old Business
It was determined that one reference book Massachusetts Public Employee Retirement Law by Richard C. Heidlage would be ordered for D. Brooker, plus one additional office copy for Retirement Board member access. Leonard Colten also requested updated Chapter 32 books for the members, of which three copies will be ordered.
As a follow up to the May meeting, the Board was informed that there is no time limit to request or complete a creditable service buyback after reinstatement in the system. The transaction must simply be completed prior to retirement.
With this, the Board also discussed the need for Supplemental Regulations for buy backs, make-up contributions and the purchase of military service. Based on general guidelines discussed in this meeting regarding amounts and method of repayment, a draft of these will be created and presented in a subsequent meeting, along with samples from other systems.
Update on Retiree Thomas Claffey: The latest PERAC medical review found no evidence of change in his medical condition; therefore his restoration to service status remains unchanged and he remains on the list for the next available captain position with the Hull Fire Department.
At 10:19, on a roll call vote, the Board went into executive session to hold an initial screening of candidates for the position of retirement administrator. Roll call vote: Marcia Bohinc, yes; D. Brooker yes; L. Colten, yes; A. Flavin, yes.
The board reconvened in open session at 11:07.
The Board reviewed summary information from the Spring MACRS conference, including:
· Health Care pamphlet
· President’s Message – Thomas A. Welch
· GASB 45: Another Challenge for MACRS – Ralph White
· Legislative Update – Spring 2005 – John Coleman Walsh
· DALA Decisions (5)
· CRAB Decisions (2)
The Board read all informational mail:
PERAC Memo #18/2005 – Report on SEC Investment Consultant Inquiry
PERAC Annual Report 2004
EAI Letter – Richard Zaccaro
Babson Staff Letter, June 10, 2005
Babson Staff Letter, May 27, 2005
Segal Bulletin – June 2005
Segal Bulletin – May 2005
Retires State, County and Municipal Employees Association of Massachusetts Newsletter – July 2005
The Board rescheduled the next regular Board Meeting for Wednesday, July 29, 2005 at 9:00 a.m. in the Selectmen’s Meeting Room.
The Hull Contributory Retirement Board meeting adjourned at 11:14 a.m.
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