2009-12-16 Retirement Board Minutes

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1147 MINUTES OF THE READING RETIREMENT BOAROI(k~~ _ Wednesday, December 16, 2009 (3 C ' F~~AC~IGMt'~~5. The Reading Retirement Board held a regular session meeting on December 16, 2009, in Th Lower Level Conference Room, Town Hall, Reading, Massachusetts. FEB 25 F ' . The meeting was called to order at 6:01 P.M. by Chairman Joseph Veno in the presence of members Richard Foley, Gail LaPointe, Francis Driscoll, Daniel Seferian, and Board Administrator, Colleen Loughlin. Kathy Riley from Segal Company attended to discuss the 2009 actuarial valuation. James Rich, DPW employee, attended to discuss the buyback of his non-membership service. SPECIAL ITEM • James Rich, a DPW employee, attended this meeting to discuss his non-membership service as a seasonal employee, prior to becoming a full time employee. The member would like to purchase 1 year of service but the Board explained that since he was contributing to social security he was not eligible to buyback that time based on the board's regulations. • Kathy Riley from The Segal Company gave a report on the results of the July 1, 2009 actuarial valuation. The following actuarial assumptions were changed with this valuation: 1. The mortality table for healthy employees was changed from the 1994 Group Annuity Mortality Table to the RP-2000 Employees Mortality Table for pre-retirement mortality and the RP-2000 Healthy Annuitant Mortality Table for post-retirement mortality: 2. The mortality table for disabled participants was changed from the PBGC Mortality Table for Disabled Lives Receiving Social Security Benefits to the RP-2000 Healthy Annuitant Mortality Table set forward 5 years. 3. The salary increase assumption was changed from 5.0% per year to increases based on years of service and Group: 4. Rates of disability were changed based on age and group. 5. Rates of withdrawal were changed based on years of service and group. The unfunded liability has increased from $27.2 million as of July 1, 2007 to $38.8 million as of July 1, 2009. The increase is primarily due to investment performance. Because the fiscal 2010 appropriation has been set to the previously budgeted amount of $3,686,795 based on the July 1, 2007 actuarial valuation, the results of this valuation will first be reflected in the fiscal 2011 appropriation of $4,229,889. The current funding schedule amortizes the unfunded liability by June 30, 2028 with amortization payments that increase 4.50% per year. RICHARD FOLEY moved to accept the Segal actuarial report dated July 1, 2009. SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS MINUTES • Executive session minutes for the September 23, 2009 meeting were signed by all board members. • Regular session minutes for the October 28, 2009 meeting were signed by all board members. • RICHARD FOLEY moved to accept the November 24, 2009 regular session minutes as amended. SECONDED BY: FRANCIS DRISOLL VOTED: (4-0-1) ABSTAINED: DANIEL SEFERIAN