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Home My WebLink About2003-02-26 Retirement Board MinutesO The Reading Retirement Board held a meeting on February 26, 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 December 18, 2002 meeting were signed by all board members except Joseph Veno who was not present at that meeting. Minutes from the January 16, 2003 meeting were signed by all board members except Joseph Veno & Dan Seferian who were not present at that meeting. Minutes from the January 29, 2003 meeting were read and accepted by all board members except Joseph Veno who was not present at this February 26, 2003 meeting. Approved new membership: Michelle Filleul Library- Circulation 02/10/03 RobertAbajian DPW- Mechanic 02/10/03 Approved PERAC approved retirements: Richard Peters RMLD 02/08/03 Approved retirement applications Sally McDonald Library 03/06/03 Walter Franklin Police 03/06/03 Approved refunds: Michelle Willis Michelle Willis Resigned 10/26/01 12 Total deductions and interest 13 Less 100% interest $ 5,544.58 Less 20% Federal income taxes $ 1,386.15 Net refund Daniel MacLean Resigned 1/24/03 Total deductions and interest Less 100% interest Less 20% Federal income taxes Net refund Mark Hyson Resigned 11/22/02 Total deductions and interest Less 100% interest Less 20% Federal income taxes Net refund Reviewed and approved the following vouchers 2003 Voucher # 08 Town of Reading Treasurer 09 Town of Reading Treasurer 10 Michelle Willis 11 Town of Reading Treasurer 12 Daniel MacLean 13 Town of Reading Treasurer 14 Mark Hyson 15 Town of Reading Treasurer 16 3(8)(c) Reimbursement 9%+2% 9%+2% 10 years 2 months Option A 19 years 7 months Option B 33 years 10 months Option A 2 years 5 months $4,837.88 $ 166.03 $ 934.37 $3,737.48 0 years 4 months $804.12 $ 1.03 $160.62 $642.47 1 year 6 months $6,981.57 $ 50.84 $1,386.15 $5,544.58 $412,291.67 Feb. retiree payroll $ 2,768.18 Feb. admin. Salary $ 3,737.48 Refund to member (cash) $ 934.37 20% Fed taxes -M. Willis $ 642.47 Refund to member (cash) $ 160.62 20% Fed taxes -D. MacLean $ 5,544.58 Refund to member (cash) $ 1,386.15 20% Fed taxes -M. Hyson $ 9,818.57 Rmb to other systems (various) Linda Whyte, Executive Director of the Reading Housing Authority, would like to redeposit funds that were refunded to her by the Massachusetts Teachers' Retirement System on 3/18/83. Upon proper repayment to the Reading Retirement System, the MA Teachers' Retirement Board will accept liability for one year of creditable service. The cost to redeposit is $1,968.63. Linda would like to have deductions taken from her weekly paycheck, in the amount of $25, which would result in her balance being paid off in about one and a half years. - The Board approved the redeposit of funds and deductions of $25 per paycheck (weekly) until the balance is paid off. ;1. Rosanne Murphy, customer specialist at RMLD, would like to redeposit funds that were refunded to her by the City of Worcester Retirement System on 11/1/74. Upon proper repayment to the Reading Retirement System, the City of Worcester Retirement Board will accept liability for nine months and 14 days of creditable service. The cost to redeposit is $830.47. Rosanne would like to have deductions taken from her bi- weekly paycheck, in the amount of $25, which would result in her balance being paid off in about one year and a few months. - The Board approved the redeposit of funds and deductions of $25 per paycheck (bi- weekly) until the balance is paid off. At last month's meeting the Board discussed the spousal acknowledgment section of the "Choice of Retirement Option" form. Can or should the Board 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. As instructed by the Board the administrator contacted a few other administrators from other systems to see how they handle this. Three administrators all require the members to bring in their spouse to discuss all options available, and one administrator requires the spouse's signature to be notarized if the spouse does not come in. - The Board voted to require that the spouse either come in to the Retirement Department to sign the "Choice of Retirement Option" form or have their signature notarized on the form The Board Administrator contacted Kathy Riley at Segal to get a proposal for FYE 2003 & 2004. The fee would be $12,500. - The Board voted to hire the Segal Company for FYE 2003 & 2004. The Board discussed the contribution rate of David Roffi. 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 %. At last month's meeting the Board made a motion to change his contribution rate to 7% prospectively and to write hire a letter of explanation. The Board Administrator wrote a letter to David on January 31, 2003. However, David came in to explain why his rate is at 5% and I confirmed this with PERAC. PERAC's Memo #29/1997 explains that prior to January 4, 1983, if a member left active service, took a refund of his contributions, returned to active service within two years of his prior separation from service and was required to make a make -up payment pursuant to G.L. c.32, §3(6)(c), he would be allowed to contribute at the rate that was in effect during his earlier period of membership service. This situation applies to David Roffi so his contribution rate should continue at 5 %. The Board will vote on a COLA increase for retirees at the April 16, 2003 meeting. The Board administrator, in accordance with the provisions of Chapter 127 of the Acts of 1999, will notify the Town Moderator of this meeting date. The Board approved a transfer of $194,743.13 from the Pension Reserve Fund to the Pension Fund. The Board Administrator has received a few requests from former employees of the Town requesting to buy -back previous employment time. The Board members clarified for the Board administrator the buy -back policy of the Reading Retirement Board regarding non -full time employees. The Board re- appointed Daniel Seferian to the Reading Retirement Board. His term will run from 4/1/03 to 3/31/06. Mike Reardon, the new Senior Client Services Officer for the PRIM board, is tentatively scheduled to come to the March meeting to discuss the performance of the funds in PRIT through the period ending December 31, 2002 as well as the returns received by the Reading Retirement System since inception. James N. Boyd, Jr., former Town Treasurer who retired on April 20, 1979 after failing to be re- elected, passed away on 1/26/03. He chose Option A at his retirement. Dorothy Austin, who worked in the Collector's office and retired on July 1, 1977, passed away on 2/21/03. She chose Option C at her retirement but then popped -up to Option A upon the death of her spouse in 1989. NM Reading Retirement System - Items reviewed (postponed until the March meeting) General Ledger Trial Balance as of January 31, 2003. Bank Reconciliation for month ended January 31, 2003. PRIM - Reviewed Monthly Account Statement and PRIT Fund Performance for Period Ending January 31, 2003. Memos received: PERAC - Memo # 9/2003, dated January 28, 2003 - Buyback and repayment worksheet and instructions for calendar year 2003. PERAC - Memo # 10/2003, dated February 20, 2003 - Impact of furloughs on creditable service and regular compensation. PERAC - Memo # 11/2003, dated February 24, 2003 - Changes to the military service credit provision. Chapter 468 of the Acts of 2002 removes the ten -year creditable service requirement in order to purchase creditable service for military service. This Act takes effect on April 1, 2003. Retirement boards must assure that all eligible new members and all eligible members with less than ten years of creditable service are notified of this option and given 180 days to determine whether or not to purchase this creditable service. PRIM Board - The PRIM Board announces the addition of a new Senior Client Services Officer, B. Michael Reardon. Retired State County and Municipal Employees Association - On January 30, 2003, Governor Romney filed a local "relief' bill with the Legislature. Contained within the bill is language that would limit local health insurance employer contributions to 75% and provide for a new local government early retirement incentive. Middlesex Retirement System - is hosting the Tenth Annual Retirement System Conference on April 7 -9, 2003 to be held at the Radisson Hotel & Suites Chelmsford. The registration fee for the conference is $50 for retirement board members and administration staff. The next Board meeting will be March 26, 2003. Meeting adjourned at 7:15 P.M. Present: Boissoneau, Foley, Klepeis, Seferian and DeAngelis ry J. Xisqdneau, 1" elected Ex W. Klepeis, I Joseph�A+�W -� elected �. Daniel B. Seferian, 2 ointed