Old Saybrook Pension and Benefits Board
Regular Meeting, September 25, 2014
Meeting Minutes
First Floor Conference Room Town Hall
Members present: Suzanne Taylor, Ray Muratori, Carol Voight, JT Dunn, Eileen Torenti, Stephen Sheehan
Absent: Carl Fortuna
Others: Sharon Migliaccio, Tom Forma and Kevin Nichols of Merrill Lynch
The meeting was called to order at 7:00pm by Suzanne Taylor. Introductions were made and everyone was welcomed.
The minutes of the Special Meeting on August 28, 2014 were reviewed. A correction was noted by Tom Forma that the actual rate of return for the state of Connecticut was 15.6%. still lower than the town’s return. A motion was made by Carol Voight to accept the minutes as corrected. Ray Muratori seconded the motion. All voted in favor and the motion passed.
The minutes of the June 26, 2014 were discussed. Eileen Torenti made a motion to accept the minutes. Ray Muratori seconded the motion. All voted in favor and the motion was passed.
Chairs Report:
Important news was shared regarding Gary Lehrman’s resignation submitted on August 28, 2014. The Chair read the resignation letter and indicated that she had accepted his resignation effective August 28, 2014. The Chair also informed the board that effective at the end of 2014, Stephen Sheehan is resigning his seat on the board. The Board expressed its regret that Gary had resigned and commented on his value, especially with regard to ICMA
Suzanne and Carol reported that they had met with Carl Fortuna earlier in the day and learned that . Carl has recommended Paul Tracy (Independent) to replace Gary.
It was announced that the fall meeting of the CPPF is on October 30, 2014 at Water’s Edge. Suzanne encouraged board members to attend since it is being held next door in Westbrook. .
A CEA retirement flyer was distributed. Discussion concerning state pension finances and their performance ensued as well as some observations concerning the numbers of teacher who do not have social security.
Suzanne reported on every board members terms and when they come due.
Stephen Sheehan – 2015
Suzanne Taylor - 2016
Carol Voight –2017A
Eileen Torenti – 2018
Ray Muratori – 2019
Other news:
A request to retire was received from Police Officer Michael Gardner rand will become effective Oct. 1, 2014. .
More discussion continued about the meeting with Carl Fortuna from earlier this day. Carl suggests requesting funding from the Board of Finance to pay for a study regarding the differences between having a defined benefit plan and other alternatives. A motion was made by Ray Muratori to request funding from the Board of Finance to get a study done about the different plans. Eileen Torenti seconded the motion. All voted in favor and the motion passed. It was noted that it may be necessary to issue and RFP and solicit others in addition to Milliman.
Investment Reports:
Tom Forma reported on the status of both the Pension and Healthcare Plans managed by The Forma Group – Merrill Lynch. There were two booklets detailing the accounts distributed to the group. The funds continue to be performing well.
Tom Forma reported that Bank of America has deemed that Municipal Pension accounts are risky and they have asked all Municipal Accounts to be closed. Suzanne added that the Treasurer just this day found a notice in a quarterly report that outlined this process. Although a letter was supposed to have been sent by Merrill Lynch to the Town of Old Saybrook dated August 27, 2014, none was ever received. Tom indicated that out of the ten towns he represents only one had ever received the official letter.
Tom Forma indicated that he and his team will leave Merrill Lynch and find a better suited company to work with and respectfully requests to keep on with the Town of Old Saybrook and the management of the funds. The accounts will be closed 02/27/2015. The town may have to do an RFP to select a new money manager company. Suzanne reported that in the morning conversation with Carl he recommends that the board do nothing further for now.
When asked what would happen if nothing was done, Tom Forma responded that BOA will send a check to the town for any liquid funds. Any stocks would be sold and liquidated or printed and stock certificates would be mailed. He reported that BOA will make it very difficult for the Town of Old Saybrook if they don’t comply. Carol Voight mentioned the RFP and discussion continued. Tom Forma has been formally invited to the October meeting of the board. Kevin Nichols added that the letter was sent without consultation of Tom or himself.
It was added that Bob Fish, Treasurer, found this letter in the monthly bulletin. A letter was never received via delivery from the USPS or otherwise.
Discussion continued as to if an RFP is required legally. Stephen Sheehan was asked if he had an opinion on this matter and he did not. Ray Muratori was also asked and he indicated that he did not know if it was required.
Tom Forma asked about the Town Ordinances regarding such a matter. Much discussion continued regarding the change of Custodian of the Pension and Healthcare accounts.
Fiscal Policy:
The two new Funding Policies will be presented at the next Board of Selectman meeting on October 14th at 3:30pm. Suzanne asked Ray if he would attend the meeting. Ray agreed.
Suzanne thanked JT Dunn for all that he has done to assist the OSFD portion of the Pension. Suzanne appreciated all of the time and research JT has put into securing the pension plan for the members of the OSFD. She noted that effective January, 2015 he will no longer be chief. JT acknowledged that a Fire Chief may serve five consecutive one year terms and that he is serving his last term. He indicated that Assistant Chief Jay Rankin will most likely succeed him in this position.
Stephen Sheehan made a motion to thank JT for his assistance in enabling the Pension Board to address the needs of the Old Saybrook Fire Department. The motion was seconded by Ray Muratori. All voted in favor and the motion passed.
Next item discussed was a copy of a letter from the Social Security Administration from former Officer Stone. This letter confirmed he is still eligible for Disability. A motion was made by Stephen Sheehan to pay for one more year as the board has been provided with verification that Officer Stone is indeed still eligible to collect disability. A new letter is requested in September of 2015 to see if he then meets eligibility. Ray Muratori seconded the motion. All voted in favor and the motion passed.
A motion was made to adjourn the meeting at 8:15. Ray Muratori seconded the motion. All voted in favor and the meeting was adjourned.
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