HomeMy WebLinkAbout2002-06-26 Retirement Board MinutesThe Reading Retirement Board held a meeting on JUNE 26, 2002, in the Accounting and Finance Department Office, Town
Hall, Reading, Massachusetts. The meeting was called to order at 6:00 P.M.
Minutes from the April 24, 2002 meeting were not signed by the board members.
Minutes from the May 29, 2002 meeting were read and accepted.
Approved new membership:
.'
Charles Helmka RMLD -First Class Lineman
5/22/02
9%+2%
Christopher Gray RMLD -First Class Lineman
5/23/02
9%+2%
Brian Lees RMLD -First Class Lineman
5/28/02
9 %+ 2% Concord
Stanley Papadopoulos DPW -Water and Sewer
6/17/02
9%+2%
Reviewed and approved the following vouchers:
2002 Voucher # 36 Town of Reading Treasurer
.$405,911.80
June retiree payroll
37 Town of Reading Treasurer
$ 2,537.25
June admin. Salary
38 The Graphics Shop
$ 58.65
Envelopes with return address
39 The Corporate Connection
$ 42.28
Notary Public seal & manual
The Board voted to open the minutes of the April 24, 2002 meeting and to amend the section regarding Phyllis Maloney. The
sentence which reads "The Board decided that any buy back of time should be at the rates in effect during each time period and
also that Phyllis Maloney s current deduction rate should remain at 8 %" should be amended. It should state "It was a consensus
of the Board that any buy back of time should be at the rates in effect during each time period and also that Phyllis Maloney's
current deduction rate should remain at 8 % ".
Phyllis Maloney attended this meeting to speak to the Board members about PERAC's opinion in regards to her membership
date in the Reading Retirement System and the corresponding contribution and buy back rates. PERAC's opinion is in
agreement with the Board's consensus.
The Board voted to concur with the conclusions expressed in the June 11, 2002 opinion of PERAC in the case of Phyllis
Maloney in which it is stated that her rate of contribution and her buy back rate are tied to her date of membership (1994).
The Board also voted to write a letter to Phyllis Maloney informing her of the Board's decision and of her appeal rights.
Phyllis Maloney submitted a letter, dated June 26, 2002, to the Retirement Board at this meeting. In it she stated that she relied
upon the advice from a retirement representative for the Town of Reading in choosing to delay joining the Town's retirement
system Mrs. Maloney was asked about this statement. She agreed that it was an error, that the representative was not from the
Town of Reading or the Reading Retirement System
The Board discussed Thomas Fennelly's retirement on 2/1/99. He was retired under a Superannuation Retirement but he may
have been eligible for a Termination Retirement under G.L. c.32, §10(2)(a). He was terminated from his position in the
Department of Public Works, Water Department on June 13, 1997 as a result of a third positive test for alcohol.
The Board voted that Thomas Fennelly was not terminated from his position with moral turpitude, therefore he is eligible for a
termination retirement allowance consistent with G.L. c.32, § 10(2)(a) and his pension will be recalculated.
Memos received:
PERAC - Memo # 25/2002, dated June 6, 2002 - Early Retirement Incentive Program spreadsheet to assist with ERI
cost estimates.
PERAC - Memo # 26/2002, dated June 7, 2002 - Early Retirement Law seminar to provide assistance and to answer
questions about the implementation of the ERL
PERAC - Memo # 27/2002, dated June 10, 2002 - Chapter 46 of the Acts of 2002 - On February 28, 2002, Governor
Swift signed Chapter 46 of the Acts of 2002 which brings the Massachusetts retirement law into compliance with the
federal limitations on the dollar amounts of retirement allowance and the compensation used to calculate retirement
allowances. This only affects the highest paid public employees. Only retirement systems whose membership
includes individuals who were members of a retirement system before February 28, 2002 and who earned regular
compensation above the federal limitations will need to accept the local option provisions of the Act. For 2002, the
federal limit is $200,000 and may be higher in certain circumstances.
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PERAC - Memo # 28/2002, dated June 10, 2002 - School nurse membership in the Massachusetts Teachers'
Retirement System - In PERAC memo #24/1999, the Commission instructed Retirement Boards to search for school
nurses whose membership should have been transferred to the Massachusetts Teachers' Retirement System. The
Commission initially took the position that local retirement boards' liability for the purposes of G.L. c. 32, § 3(8)(c)
for those school nurses' retirement allowance ended at the time that a school nurse should have been transferred to
MTRS. The Superior Court has overturned that position and ruled that liability ends when a school nurse's total
accumulated deductions are actually transferred to the MTRS. As such, any board that transferred the membership of
a school nurse who subsequently retired may need to have an adjustment to the § 3(8)(c) amount.
PRIM - Monthly Account Statement and PRIT Fund Performance for Period Ending May 31, 2002.
PRIM - Quarterly Review.
Retired State County and Municipal Employees Association - June 6, 2002 - Senate proposes Section 10
retirement "reform.
Retired State, County and Municipal Employees Association - June 7, 2002 - Amendments to preserve Section 10
benefits.
Retired State County and Municipal Employees Association-- June 14, 2002 - Senate passes several retirement
amendments.
Meeting adjourned at 8:00 P.M.
Present: Boissoneau, Foley, Klepeis, Veno, Seferian and DeAngelis
816