The URL can be used to link to this page

Home My WebLink About2003-01-29 Retirement Board MinutesWE 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. 841 The Board discussed PERAC's Memo # 42/2002, dated October 25, 2002 regarding forfeiture of retirement allowance for dereliction of duty by members. This memo states that all boards have the responsibility to follow up on any information that a member or retiree may be subject to the provisions of G.L. c. 32, §15, whether or not such information is in the files of the retirement system. Barbara Phillips from PERAC is requiring a letter from all retirement boards informing PERAC as to whether or not there are any members or retirees to whom this may apply. The Board instructed the administrator to send a letter to PERAC stating that to the best of the Board's knowledge no person who is currently receiving an allowance is subject to a pension forfeiture under M.G.L. c.32, §15. Reading Retirement System - Items reviewed: General Ledger Trial Balance as of November 30, 2002 and December 31, 2002. Bank Reconciliation for month ended November 30, 2002 and December 31, 2002. PRIT Fund Annual Report for fiscal year 2002, Building For Tomorrow. PRIT Fund and PRIM Board financial statements for fiscal 2002. PRIM Board 3rd Quarter Review. PRIM - Reviewed Monthly Account Statement and PRIT Fund Performance for Period Ending November 30, 2002 and December 31, 2002. The Retirement Board received notification from PERAC that they have approved the Reading Retirement Board's decision to grant an accidental disability retirement to Robert Ripley. - PERAC has notified the Board that they have scheduled a medical examination to evaluate the medical condition of Perry Raffi. The examination is scheduled for February 13, 2003. In December 2002 the Retirement System received the pension fund assessment payments of $1,068,300 from the Town of Reading and $8,700 from the Reading Housing Authority. PERAC's auditor, Jim Sweeney, has completed his audit of the Reading Retirement System for the years 1998 -2001. The Board was notified about the auditor's findings and recommendations. The only finding was that the pages from the Board Meeting Minutes for the period of November 2000 to November 2002 are not pre - numbered and every other page is blank. The Board Administrator will take the appropriate action to correct this. Lucy Serrecchia, a cafeteria worker who retired 7/1/92, passed away on 1/1/03. She chose Option A at her retirement Memos received: PERAC - Memo #48/2002, dated December 17, 2002 - Calendar Year 2002 Annual Statements. The Annual Statement must be completed, signed, and returned to PERAC by May 1, 2003. PERAC - Memo #49/2002, dated December 19, 2002 - 2002 Disability Retiree Data. PERAC sent a list of the Reading Retirement System's current disability retirees that they have in their database and requests that the Board make all necessary status changes that occurred in the year 2002 and forward the information to PERAC by January 10, 2003. This was completed by the Board Administrator on December 31, 2002. PERAC - Memo #50/2002, dated December 31, 20D2 -PERAC Regulations. PERAC regulations 840 CMR 5.00, 840 CMR 8.00, and 840 CMR 9.00 were amended and became effective on November 22, 2002. In addition, a new regulation, 840 CMR 13.00 was enacted. PERAC has enclosed copies of the amended and new regulations. PERAC - Memo # 1/2003, dated January 7, 2003 - Regular Compensation and Motor Vehicle Usage Update. DALA issued a decision providing that the value of the personal use of an employer - supplied motor vehicle is not regular compensation for retirement purposes. This decision has been objected to and is not a fatal decision. PERAC has filed a brief in support of its position with CRAB and expects CRAB to issue a final decision within the next few months. At that time PERAC will provide the retirement boards with further guidance. In the meantime, as no final decision has been issued, PERAC continues to assert the value of the personal use of an employer- supplied motor vehicle is regular compensation as outlined in its previous memorandums. g= 842 MM PERAC - Memo # 2/2003, dated January 8, 2003 - Data Verification for 2001 Annual Statement. PERAC - Memo # 3/2003, dated January 13, 2003 - Termination Retirement Allowances. Given the current fiscal crisis in both state and municipal government and the possible resultant increase in terminations, this memo outlines the Termination Retirement Allowances available under G.L. c. 32, § 10 PERAC - Memo # 4/2003, dated January 15, 2003 - Investment Manager List. PERAC - Memo # 5/2003, dated January 15, 2003 - Tobacco Company List. PERAC - Memo # 6/2003, dated January 15, 2003 - 2003 Interest Rate set at 1.0 %. PERAC - Memo # 7/2003, dated January 14, 2003 - Hedge Fund Guidelines. PERAC - Memo # 8/2003, dated January 22, 2003 - COLA Notice. The Social Security Administration has announced that the latest Cost of Living Adjustment is 1.4 %. The COLA which any such system may grant, pursuant to Chapter 32, Section 103(c) and effective July 1, 2003 will be 1.4 %. Pursuant to Section 103(i), a Retirement Board, with proper notice to the legislative body, may elect to increase this percentage up to 3 %, at a duly called meeting. PERAC - This letter asks that the Board Administrator submit data for active members and retirees /survivors, as of 12/31/02 to PERAC by March 31, 2003. The next Board meeting will be February 26, 2003. Meeting adjourned at 7:15 P.M. Present: Boissoneau, Foley, Klepeis, Veno, Seferian and DeAngelis �J crv�% Henry J. o�iss &eau, I" elected y' Richard P. Folev. Ex Officio 19 W. Seferian,