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Home My WebLink About2003-10-29 Retirement Board MinutesThe Reading Retirement Board held a meeting on October 29, 2003, in the Accounting and Finance Department Office, Town Hall, Reading, Massachusetts. The meeting was called to order at 6:01 P.M. Kathy Riley and Michael Ban from the Segal Company attended this meeting to discuss the findings from the completed actuarial evaluation dated July 1, 2003. Minutes from the August 27, 2003 meeting were signed by all board members. Minutes from the September 24, 2003 meeting were read and accepted by all board members. Approved new members: John Thiffault Sch- Facilities Director 09/24/03 9 % +2% (Natick) Fred O'Dea, Jr. RMLD - Stockperson. 10/10/03 9 % +2% Approved PERAC approved retirements Michael Gmnzweig, Jr. RMLD- Lineman 10/06/03 16 years, 7 months Accidental Disability $ 62,502.00 Dependent $ 593.52 $ 4,376.19 Refund to member (cash w /d) Annuity $ 3,161.88 20% fed inc tax (Lynch) $ 805.00 Pension $38.530.44 $ 26.41 Admin exp - supplies Yearly $42,285.84 Admin exp - overnight postage $ 30.69 Monthly $ 3,523.82 Approved requests from eligible members to purchase military service for creditable service: Robert Abajian US Marine Corps 12/30/97 — 12/08/01 3 yrs, 11 mths David Clark US Army 07/27/89 — 07/27/92 3 yrs, 0 mths John Thiffault US Navy 06/30/67 - 10/12/70 3 yrs, 3 mths Approved refund Option C Michael Lynch Resigned 10/10/03 1 year, 11 months (Dispatcher) Total deductions and interest $ 5,502.65 Less 100% interest $ 32.41 Less 20% Federal income taxes $ 1,094.05 Net refund (cash withdrawal) $ 4,376.19 Approved transfer to other system: Diane Young To Saugus Retirement Board $62,502.00 19 years, 2 months (Inactive member) (Includes 3 yrs, 7 mths creditable service + annuity savings funds transferred from Springfield to Reading in 1986) The bonding coverage to protect the retirement system against fraud and dishonesty has been received from USI/Hastings- Tapley Agency. National Grange is the insurance company issuing the policy, the policy period is 8/2/03 to 8/2/04, and the cost is $805.00. The coverage, as required by PERAC, is for $100,000 for Public Employee Dishonesty Coverage (Per Employee Blanket Bond - Crime). An endorsement adds Schedule Excess Limit of Insurance for Specified Employees or Positions, which applies to each "employee" who is named or who holds a position listed on the endorsement. Reviewed and approved the 2003 Voucher # 57 58 59 60 61 62 63 64 65 66 'ollowing vouchers: Town of Reading Treasurer Town of Reading Treasurer Saugus Retirement Board Michael Lynch Town of Reading Treasurer USI/Hastings- Tapley Agency, Inc Corporate Express Elizabeth W. Klepeis Town of Reading Treasurer Corporate Express $446,911.21 Oct retiree payroll $ 2,866.05 Oct admin. Salary $ 62,502.00 Trsf to other system (D Young) $ 4,376.19 Refund to member (cash w /d) $ 1,094.05 20% fed inc tax (Lynch) $ 805.00 Admin exp- bonding coverage $ 26.41 Admin exp - supplies $ 14.28 Admin exp - overnight postage $ 30.69 Adnim exp - postage from Town $ 230.00 Admin exp -chair for board adnim 865 LOW Robert Toussaint, a school custodian, has submitted an application for accidental disability. His application is now complete and we have also received the completed Physician's Statement and the Physician's Narrative. The last items needed are authorization forms signed by Robert Toussaint. The Board voted to send a request to PERAC to convene a medical panel once the signed authorization forts and all medical records associated with these forms have been received. A transfer of $14,508.60, dated 10/9/03, was received from the Lynn Retirement System for firefighter Scott Wade. Lynn will accept liability for 3 years, 4 months of creditable service for the period 3/12/00- 7/17/03. Affidavits were mailed to all retirees with the September checks. There are 34 affidavits still due. Second notices will be sent out with the October checks. Retired member, Charles Johnson, was notified by certified mail, that he owes the retirement system $2,451.19 for excess earnings in 2002. He had until October 13, 2003 to reimburse the board or request a hearing. He did neither so his retirement allowance will need to be withheld until the full amount has been reimbursed. However, Charles has deductions for health insurance and a QDRO (qualified domestic relations order), and as stated in a letter from PERAC dated September 11, 2003, health insurance deductions should continue and the remainder of the allowance shall be withheld to recover the amount owed. When Sandor Zapolin at PERAC was asked about continuing the deduction for the QDRO as well as for the health insurance he said the board cannot continue that deduction. A few board members wanted to discuss this issue. Joseph Veno made a motion and the board voted 3 -2 to withhold the full retirement allowance with the exception of the health insurance deduction. The board requested that a letter be sent to the recipient of the QDRO as a notification that the recipient will not receive payment for a few months. The Town of Reading has decided not to offer the Early Retirement Incentive this year. Joseph Veno's term on the retirement board as an elected member ends March 31, 2004. A notice will be sent with the December checks to inform retirees of the upcoming election in March. Survivors and non - contributory retirees will not receive this notice. The notice will be posted at 8 Town locations and all schools on the same day the retirees get their notice and it will be included in the November employee newsletter. The board, with the exception of Joseph Veno who abstained, appointed the Retirement Board Administrator, Karen DeAngelis, as Election Officer. PERAC's memo of October 16, 2003 states that CRAB recently issued two decisions providing that the value of the personal use of an employer- supplied motor vehicle is not regular compensation for retirement purposes. PERAC has instructed all boards to cease collecting any retirement contributions from active members and to cease paying any portions of retirement allowances attributable to the value of the personal use of employer- supplied motor vehicles. The board administrator has complied with PERAC's instructions beginning with the October checks. Genevieve Demenkow, who worked for the school department and retired on June 20, 1980, passed away on 10/5/03. She chose Option B at her retirement but there are no annuity funds remaining. Two attorneys, Nicholas Poser and Carol Nesson, have sent advertisements to the retirement ,board stating that they have experience in Massachusetts retirement law or public pension matters. Nicholas has asked to speak to the board about his services. He spoke to the board a few years ago and at that time the board said they would contact him if there was a need for additional counsel. The board instructed the board administrator to send a letter to Nicholas Poser to let him know that they haven't needed additional counsel but they will still keep him in mind. Reading Retirement System - Items reviewed: General Ledger Trial Balance as of September 30, 2003. Bank Reconciliation for the month ending September 30, 2003. PRIT's monthly account statement and fund performance for period ending September 30, 2003. �60 e Memos received: PERAC - Memo #31/2003, dated October 6, 2003 — Tobacco company list. PERAC - Memo #32/2003, dated October 6, 2003 — Appropriation data due October 31, 2003. PERAC - Memo #33/2003, dated October 7, 2003 — Update on repeal of G.L. 32, §5(1)(e) — spousal retirement provision. Pending CRAB'S review of the DALA decision, all retirement boards shall prohibit a member from utilizing this section unless they applied for retirement prior to July 1, 2003. PERAC - Memo #34/2003, dated October 16, 2003 — Regular compensation and motor vehicle usage update. PERAC - Memo #35/2003, dated October 21, 2003 — Investment manager list. PERAC - Memo #36/2003, dated October 24, 2003 — Update on repeal of G.L. 32, §5(1)(e) — spousal retirement provision. The Legislature has overridden the Governor's veto of an extension of the time to file for retirement under this provision. Any member wishing to retire under this provision has only until October 31, 2003 to do so. This provision will be repealed as of November 1, 2003. PERAC - Memo #37/2003, dated October 27, 2003 - Update on repeal of G.L. 32, §5(1)(e) — spousal retirement provision. As a clarification to PERAC's memo # 36/2003, any member who applies for retirement using this provision before November 1, 2003 with a retirement date up to or after November 1, 2003 will be eligible to retire using this provision despite its pending repeal. The retirement date must be subsequent to but not more than four months after filing of such application. MACRS — Issued their financial statements for June 30, 2003 and 2002. Retired State, County & Municipal Employees - Memo dated October 8, 2003 — Local ERI update of board activity. The next board meeting will be November 19, 2003. Meeting adjourned at 8:18 P.M. Present: Boissoneau, Foley, Klepeis, Veno, Seferian, and DeAngelis Kathy Riley and Michael Ban from the Segal Company