2003-01-29 Retirement Board Minutes

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WE The Reading Retirement Board held a meeting on JANUARY 29, 2003, in the Accounting and Finance Department Office, Town Hall, Reading, Massachusetts. The meeting was called to order at 6:10 P.M. Minutes from the November 20, 2002 meeting were signed by all board members. Minutes from the December 18, 2002 meeting were read and accepted by all the board members who were present at that meeting, the exception being Joseph Veno, who was not present. Minutes from the January 16, 2003 meeting were read and accepted by all board members who were present at that meeting, the exceptions being Joseph Veno & Daniel Seferian, who were not present. Approved new membership: Ryan Mahoney Dispatcher 01/09/03 9%+2% Salvi LaVita Police Officer 01/13/03 9 % +2% Approved retirement applications Richard Peters RMLD 02/07/03 10 years 2 months Option A Mary P. Valido Collector's-Asst. 03/15/03 29 years 8 months Option A Richard Monroe Police- Dispatcher 04/25/03 20 years 7 months Option C Roger Quimby Firefighter 05/16/03 32 years 0 months Option B Approved refund Peter Lorenzetti Resigned 1/13/03 3 years 5 months Total deductions and interest $10,237.01 Less 100% interest $ 206.18 Less 20% Federal income taxes $ 2,006.17 Net refund $ 8,024.66 Approved an increase in hours worked per week for the Board Administrator from 32 hours to 33.75 beginning 111103. The Board discussed Brace Russell's contribution rate. His rate is currently 7% + 2 %. His rate should only be 7 %, not the additional 2% because he transferred his funds from Everett when he started working for Reading in 1981 and his entry date in the Everett Retirement System was 1977. Due to this error, which first affected Bruce in 1990 and continues to date, the Reading Retirement Board made a motion to reimburse Bruce a total of $7,246.06. Reviewed and approved the following vouchers 2003 Voucher# 01 02 03 04 05 06 07 Town of Reading Treasurer Town of Reading Treasurer Peter Lorenzetti Town of Reading Treasurer MACRS, Inc. 3(8)(c) Reimbursement Bruce Russell $411,871.34 Jan. retiree payroll $ 4,142.58 Jan. admin. Salary $ 8,024.66 Refund to member (cash) $ 2,006.17 20% Fed taxes-P. Lorenzetti $ 200.00 Admin Exp (annual dues) $ 69,068.38 Rmb to other systems (various) $ 7,246.06 Member Deductions The Board discussed the spousal acknowledgment section of the "Choice of Retirement Option" form. The issue is whether the Board should require the spouse's signature to be notarized or require the spouse to come in person to sign the form. Currently, the member sends or brings in the form and there is a spousal signature. The Board asked the administrator to call a few other Boards to see how they handle this situation. The Board discussed whether they should continue with Segal or use the services of another company for actuarial services. The Board asked the administrator to get a quote from Segal for actuarial services as of June 30, 2003 and June 30, 2004. The Board discussed the contribution rate of David Ruff. His rate is currently 5% but it should be 7 %. David first became a member of the Reading Retirement System in December 1972 so his contribution rate was 5 %. In December of 1976 he took a refund. Then in May of 1978 he started work for RMLD and became a member of the retirement system once again. Now David's contribution rate should have been 7% because of the refund he had taken. However, the Board at that time approved his contribution rate at 5 %. The Board made a motion to change his contribution rate to 7% prospectively and to write him a letter of explanation.