Newtown Pension Committee
Minutes
October 20th, 2009
The Newtown Pension Committee met on Monday, October 21st, 2009 in the lower meeting room of Edmond Town Hall. The meeting was called to order at 6:32pm.
Present: Tom Murtha, Barbara Bloom, Frank Krasowski and Mark Korotash, Dunham Smith.
Also in attendance: the Board of Selectmen, Robert Tait, Carole Ross.
Mr. Krasowski stated that as of today, the pension fund is $26,225,057. This is very close to the June 30th figure. A discussion took place regarding the Board of Finance questions. The Pension Committee has answered them and presented them to the Board of Selectmen. Last month the committee met with Westport Resources to finalize them. Mr. Krasowski gave an explanation regarding lowering the rate of return and the history of numerous discussion regarding this. The cost to lower the rate to 7.5% would be approximately $250,000. Mr. Murtha stated that the committee listens to its advisors, Westport Resources and TR Paul and their advice has worked and worked well especially in light of the economy. Neither has suggested the rate be lowered. The committee will
discuss this again at the next meeting and make a recommendation to the Trustees.
A question was asked as to whether the committee had considered separate managers for the fund. Mr. Krasowski stated that in fact there are 2 managers. One lives in Omaha (Mr. Sterneck) and handles the bonds and the other – Mr. Polanski handles the equity side of the portfolio. Mr. Murtha stated that Westport Resources has done a great job and the fund would not be in the condition it is in without their hard work.
Continued discussion on the rate of return – Mr. Murtha stated the only reason for not lowering it would be cost. The Pension Plan is fully funded. Lowering the rate would certainly be an easier target to reach. The questions were given to the Board of Selectmen and they will respond as they feel they should.
Approval of Minutes: The minutes of September 21st were approved as written.
Communications: Mrs. Ross requested an increase of $3,000 to the services and supplies budget. There has not been an increase since 2001. Mr. Smith moved to increase with Mrs. Bloom seconded. Motion passed as presented.
Approval of Bills: A bill in the amount of $2088 was moved by Mr. Smith and seconded by Mr. Korotash.
Public Participation: None
Mr. Korotash moved to adjourn. Mrs. Bloom seconded
Meeting adjourned at 7:20
Carole Ross
Clerk
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