2003-04-16 Retirement Board Minutes

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i A letter was sent to the Reading Town Moderator, Alan Foulds, on March 3, 2003, notifying him that the Reading Retirement Board will be voting on granting a COLA increase for Fiscal Year 2004 at the April 16 meeting. The April meeting was publicly posted with the Town Clerk on February 28, 2003. Board members need to vote on a COLA increase for FY 2004, which begins on July 1, 2003 and ends June 30, 2004. - The Board voted to grant a 3% COLA increase to eligible retirees for FY 2004. The Board discussed PERAC's Memo #11/2003, regarding "Changes to the Military Service Credit Provision." Chapter 468 of the Acts of 2002 removes the ten -year creditable service requirement in order to purchase creditable service for military service. All eligible new members and all eligible members with less than ten years of creditable service must be notified of this option and given 180 days to determine whether or not to purchase this service. Sander Zapolin, from PERAC's legal unit, informed me that while the member has 180 days to determine whether or not to purchase their military service, the Board can decide when the member can begin making payments. For example, the Board could vote that the member must begin making payments immediately or that the member can begin making payments any time within five years, ten years, or even just before they retire. - The Board voted to allow eligible members to defer pay back up to 10 years after opting to join the program but the member may also choose to begin pay back immediately. At 10 years, the member must start payroll deductions, make a lump -sum payment, or opt out of the program in writing. A supplementary regulation will be drafted by the Board Administrator and the Board will discuss at the next meeting. David Lee has requested to purchase his military service of 4 years. The cost is $14,757.69 and he would like to make a lump sum payment. - The Board voted to allow David to purchase his military service and make a lump -sum payment of $14,757.69. Pamela Baggs, an educational assistant, and one of the plaintiffs in the Delia M. Quinlan, et al vs. Reading Retirement Board, would like to purchase 3 years (pro- rated) of creditable service for the period 9/1/81- 12 /13/84. This is for service in Reading from her date of hire until she actually joined the Reading Retirement System. She should be allowed to purchase this service per the above - mentioned case. The purchase amount is $2,167.44. Pamela would also like to redeposit funds that were refunded to her by the Massachusetts Teachers' Retirement System on 3/21/86. Upon proper repayment to the Reading Retirement System, the Massachusetts Teachers' Retirement Board will accept liability for 2 years and 6 months of creditable service. The cost to redeposit is $1,897.46. Pamela would like to make a lump -sum pre -tax rollover payment from her 403(b) account in the amount of $4,064.90 for both of the above. - The Board voted to allow Pamela to purchase her prior Reading service, redeposit funds that were refunded to her by the Massachusetts Teachers' Retirement System, and to make a lump -sum pre -tax rollover payment from her 403(b) account in the amount of $4,064.90. Paul Carson would like to buy back creditable service for the first six months he worked for the Light Department and was not allowed to join the system for those months. The cost is $1,037.37 and he would like to make a lump sum payment. - The Board voted to allow Paul to buy back prior Reading service and make a lump -sum payment of $1,037.37. The Board was notified that Evan Edwards, who worked for the Reading Police Department and retired on Febmary 24, 1978, passed away on 4/12/03. He chose Option B at retirement but there are no funds remaining in his annuity account. Reading Retirement System - Items reviewed General Ledger Trial Balance as of February 28, 2003. Bank Reconciliation for month ended February 28, 2003. The Annual PRIM Client Conference will be held on Wednesday, May 28, 2003 from 10 am to 3 pm at Bentley College in Waltham - The following Board members and staff who expressed interest will be allowed to attend: Henry Boissoneau, Richard Foley, Elizabeth Klepeis, and Karen DeAngelis.