2009-01-28 Retirement Board Minutes

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I i 0 - Massachusetts Teachers' Retirement Board - Lawrence Retirement Board - Needham Retirement Board Somerville Retirement Board • Received memo from PERAC advising the Board that the rate for "regular interest" on the accumulated total deductions will be 0.5% for the calendar year 2009. • Received memo from PERAC that COLA, which any system may grant, effective July 1, 2009 will be 3.0%. The Board must make a decision whether or not to grant a COLA and notify the Commission. The Administrator will notify the Town Moderator that the Board will vote for a COLA increase at the March 25, 2009 board meeting. • Savery Bizzarro, who worked for Public Works and retired on May 22, 1984, passed away on 1/1/09. He chose Option B at his retirement but there are no funds remaining. He retired on an accidental disability retirement and his spouse pre-deceased him. • All affidavits were received. • Accidental Disability retiree Donald Stead had excess earnings for 2005 and 2006. He has already been notified of excess earnings for 2007, which his lawyer is appealing to DALA. • Received memo from PERAC requesting a list of all members who have retired under superannuation between January 1, 2007-December 31, 2008. Because the Board elected to take advantage of the benefit calculation waiver process on submitting superannuation retirement calculations to PERAC for approval, then the Board must participate in the process of a bi-annual review of such calculations. Information sent to PERAC on January 27, 2009. • Received letter from Newton Retirement Board addressed to Ralph White, MACRS, sharing the Board's recommendation on possible legislative filings regarding the amount of retiree cost-of-living adjustments. Newton Retirement Board members agreed that they would support amended legislative language stipulating that a retiree who has an annual pension of less than $12,000 would be entitled to a monthly COLA of $30.00 (not based on 3% of an annual pension less than $12,000). Raising the COLA base to $16,000 while commendable, will not benefit these group of retirees. • Received letter from Attorney Nicholas Poser to advise the board that his new hourly rate is $225.00 for all work performed for the Reading Retirement Board. Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & fund performance for period ending Nov 30, 2008 & Dec 31, 2008. General Ledger Trial Balance as of November 30, 2008 & December 31, 2008. Bank Reconciliation for the month ending November 30, 2008 & December 31, 2008. The PERAC Financial Bulletin, Financial Market Review, Fourth Quarter 2008. • The next board meeting will be February 25, 2009 at 6:00 pm in the Lower Level Conference Room. Paul Todisco, from the PRIM Board, will be attending to discuss the PRIT funds. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #41/2008 - 2009 Limits under Chapter 46 of the Acts of 2002 - The regulations regarding Section 401(a)(17) (compensation limit) and Section 415 (benefit limit) of the Internal Revenue Code can vary under individual circumstances. The compensation limit for 2009 is generally $245,000 ($360,000 if a current member became a member prior to 12/31/95). The general benefit for 2009 is $195,000 per year for a member retiring at age 65 although this limit is generally reduced for retirement prior to age 62.