Old Saybrook Pension and Benefits Board March 27, 2014 Meeting: Minutes
Members Present: Suzanne Taylor, Ray Muratori, Gary Lehrman, Carol Voigt, Steven Sheehan and Carl Fortuna
Absent: Eileen Torrenti
Others: Kevin Nichols of Merrill Lynch, Vincent DeRosa and Ted Vogel of Neuberger Berman, Sharon Migliaccio, JoAnn Lockwood, JT Dunn and Maureen Reilley
The meeting was called to order at 7:07 p.m. introductions were made around the room and guests welcomed.
An edit was made to the February 27, 2014 meeting minutes to include “since inception” to the following sentence: Moving on to the Pension funds, as of February 21, 2014 there is $18,867,593 in the Pension fund with a cumulative growth of $8,535,987 since inception.
Ray Muratori moved to accept the minutes of the February 27, 2014 meeting, seconded by Gary Lehrman and unanimously approved.
Chair’s Report
Suzanne announced that the new Connecticut Public Pension Forum (CPPF) Meeting will be held on May 1, 2014 at Westbrook’s Water’s Edge. Of note, was the Forum’s list of speakers including Tim Lane, Managing Director of TIAA-CREF and Rebecca Sielman from Milliman who will talk about new regs of the Government Accounting Standards Board (GASB). Suzanne encouraged all Board members to attend and will double check at the next Board meeting on April 24th for a head count.
Suzanne had two announcements, first was an adjustment to William True, Fire Fighter’s pension due to an additional year of credit. The second concern was an early retirement calculation for Donna Ladner’s vested pension. A discussion ensued pertaining to how to advise her of the potential options available. Gary suggested it would be helpful if the Pension Board could offer some advice to help her understand the various possibilities available. Kevin Nichols offered to provide some additional financial insight to her about the various options and their cost implications available to her while she tried to understand when best to take her vested pension: now or later.
His offer of free advice was welcomed by the Board and they will make his offer known to her through Sharon.
Financial Reports
Kevin introduced Vincent DeRosa, Regional Director - New England and Ted Vogel, Senior Vice President of Neuberger Berman LLC. Kevin noted that Neuberger Berman Core Fixed Income portfolio was up 1.47% year to date through March 24, 2014. Ted Vogel gave the Board a review of last years’ bond market. Referring to the Bond Portfolio Summary, Ted reviewed the portfolio and noted that the 5 year duration is yielding about 2%.
Returning to Kevin’s report of the Pension figures, as of Monday, March 24th there is $19,048,617 in the Pension Fund. The portfolio’s performance through February 28, 2014 is as follows: year to date is up .37% and the fiscal year is 11.41%. Kevin went through the performance by account and noted that the two equity managers, Davidson and Eaton Vance are both showing positive returns. A correction was made to the cover under the Relative Performance Equities, year to date should read, as of February 20, 2014. Gary asked about the annualized performance average per year. Kevin noted the Average Annualized Portfolio Return is 5.36% on the cover page.
Suzanne asked to have the pension plan investments allocated to the Fire Department Plan separated from those covering town employees. This can be done. Carl wondered why with regards to the Employee Pension it is 82% funded and the Fire Department is only about 50% funded but noted we are making required contributions. Suzanne explained that the fire department plan is only 20 years old and several costly improvements have been made in the last few years, thus the amortization periods are shorter for some and more variable.
Carl asked Kevin if they are looking at the 10 year Treasury rates when they say interest rates are going to rise, to which he replied yes. Kevin thinks that the Fed will start to raise short term interest rates. A brief mention was made that the Health Care Fund, year to date performance is up 1.31%, fiscal year (ending 6/30/2014) is 7.99% and the average annualized portfolio return is 4.64%. Fixed income and Equity are up.
Suzanne asked the Secretary to note it in the minutes that Carl would request a copy of the latest Liberty Bank statement showing the approximate $300,000 that represents the Blue Cross stock sale several years ago and which money now is comingled with the town’s cash investments.
Eaton Vance will be in attendance at the April meeting.
The 457 Plan
Gary noted that Laura Hancock spoke to Janet today and confirmed that announcement of the April 23rd meeting will go out 2 weeks prior so plan participants can take note of this meeting, for 457 plan participants. Gary will prepare a new report for the April 24th Pension and Benefit Board Meeting.
Other Reports
Fire Department Retirement Plan
Chief JT Dunn presented the Board with the Revised Town of Old Saybrook Fire Company No. 1 Retirement Plan effective July 1, 2014 along with a separate handout explaining the various revisions. JT noted which ones were solely housekeeping changes and also pointed out the newer changes. Discussion ensued pertaining to how points are awarded and how calls are recorded. Carl asked how many members are currently on Active Duty. JT responded with 102. Suzanne handed JT a copy of the participant benefit register which shows the active duty membership. JT handed the register to Carl to review.
Suzanne asked the Secretary to note in the minutes with regards to section 6.1, to add a rule to the plan concerning beneficiary designation.
Steven Sheehan moved that we recommend, that the Board of Selectmen adopt the amended and restated Fire Company No. 1 Retirement Plan, effective as of July 1, 2014, as proposed and revised noting a change in section 3.3 and 9.1, that they both reflect 10 years of service instead of 15 and 5 respectively. Ray Muratori seconded the motion and unanimously approved.
New Business
Suzanne asked the Board for their endorsement of JoAnn (Joey) Lockwood as the new Secretary. Gary Lehrman moved to endorse JoAnn Lockwood as the new Secretary of the Pension and Benefit Board. Ray Muratori seconded the motion and unanimously approved.
There being no further business Gary Lehrman made a motion to adjourn, which was seconded by Ray Muratori, all approved. The meeting ended at 9:30 p.m.
Minutes submitted by Maureen Reilley
| 