HomeMy WebLinkAbout2005-09-28 Retirement Board MinutesME
MINUTES OF THE READING RETIREMENT BOARD MEETING
WEDNESDAY SEPTEMBER 28, 2005
The Reading Retirement Board held a regular session meeting on September 28, 2005, in the Accounting and
Finance Department Office, Town Hall, Reading, Massachusetts.
The meeting was called to order at 6:00 P.M. by Chairman Joseph Veno in the presence of members Francis
Driscoll, Richard Foley, Elizabeth Klepeis, and Daniel Seferian.
SPECIAL ITEM
Kathy Riley and Bridget Orr from The Segal Company gave a report on the results of the July 1, 2005 actuarial
valuation. The following actuarial assumptions were changed with this valuation:
1. The investment return assumption was lowered from 8.00% to 7.75 %.
2. The salary increase assumption was lowered from 6.0 % to 5.0 %.
3. The assumed retirement age was changed from age 63 for Group 12 employees and age 62 for Group 4
employees to retirement rates shown in Exhibit V of Section 4.
4. The administrative expense assumption was increased from $ 50,000 to $ 60,000.
The preliminary recommended contribution for FY 2006 is $ 3,600,720. Since the Town's FY 2006 budget has
been set at $ 3,488,686, the increase will be reflected in the FY 2007 requested budget of $ 3,696,695. The
unfunded pension liability with the new assumptions is $ 30,684,743 and the actuarial value of assets is
$71,468,124 or 98.9 % of the market value of assets. The smoothing technique continues to be used to the
advantage of the Reading Retirement System.
ELIZABETH KLEPEIS moved to accept the Segal actual report dated July 1, 2005.
SECONDED BY: DANIEL SEFERIAN
VOTED: (5 -0 -0) UNANIMOUS
MINUTES
• Regular session minutes for the June 23, 2005 meeting were signed by all board members.
• Regular session minutes for the July 21, 2005 meeting were signed by all board members except Elizabeth
Klepeis who was not able to attend.
• ELIZABETH KLEPEIS moved to accept the July 21, 2005 regular session minutes as written.
SECONDED BY: DANIEL SEFERIAN
VOTED: (5 -0 -0) UNANIMOUS
APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS
• ELIZABETH KLEPEIS moved to approve the following new members:
Adam Shibles
Parks & Forestry
Date of hire & membership - 8/29/05
9%+2%
Robert LeLacheur
Finance
Date of hire & membership — 9/12/05
9%+2%
David Ericson
RMLD
Date of hire & membership — 9/12/05
9%+2%
Kenneth J. Hughes
School
Date of hire & membership — 9/12/05
9%+2%
SECONDED BY: DANIEL SEFERIAN
VOTED: (5 -0) UNANIMOUS
ME
• ELIZABETH KLEPEIS moved to approve the following superannuation retirement application:
John Thiffault School 10/17/05 11 years, 0 months Option C
SECONDED BY: DANIEL SEFERIAN
VOTED: (5 -0 -0) UNANIMOUS
• ELIZABETH KLEPEIS moved to approve the transfer of funds to other systems as follows:
Sharon Srabian (former dispatcher) funds transferred to the Arlington
Retirement Board in the amount of $2,720.79
SECONDED BY: DAN SEFERIAN
VOTED: (5 -0 -0) UNANIMOUS
ELIZABETH KLEPEIS moved to refund accumulated deductions as listed in the vouchers:
Karen Tavano School Resigned 5/7/99 12 years, 3 months service
SECONDED BY: FRANK DRISCOLL
VOTED: (5 -0 -0) UNANIMOUS
APPROVAL OF MISCELLANEOUS ITEMS
MM
• ELIZABETH KLEPEIS moved that the Board approve Mrs. Jacqueline Jobe's accidental death benefit under
MGL Chapter 32, Section 9
SECONDED BY: DAN SEFERIAN
VOTED: (5 -0 -0) UNANIMOUS
• There was a unanimous consensus of the Board to send a letter to PERAC regarding John O'Keefe's medical
panel report, incorporating Attorney Augustus Camelio's questions.
•, FRANK DRISCOLL moved that Richard Foley, former Town Accountant, be authorized to look at all files of
the Reading Retirement System and that he be compensated for up to 75 hours at $40/hour as consultant to
the new town accountant and new retirement administrator in connection with their duties for the Retirement
Board.
SECONDED BY: DAN SEFERIAN
VOTED: (5 -0 -0) UNANIMOUS
APPROVAL OF VOUCHERS
• ELIZABETH KLEPEIS moved to approve the following vouchers
2005 Voucher # 74 Town of Reading Treasurer
$ 501,574.06
September retiree payroll
75 Richard Foley, petty cash
$
34.31
Postage & Mailings
76 Corporate Express
$
5.09
Manila folders
77 Arlington Retirement Board
$
2,720.79
Transfer to other system
78 Karen Tavano
$
4,404.27
Refund to member
79 Bank of America (Tavano)
$
8,000.00
Refund to member
80 Town of Reading (IRS Tavano) $
982.45
Refund to member
SECONDED BY: DAN SEFERIAN
VOTED: (5- 0- 0)UNANIMOUS
INFORMATION /QUESTIONS /OTHER ITEMS 9 J 4
• DALA has scheduled a hearing for former School Department custodian Robert Toussaint on Wednesday
October 26 at 9:30 a.m. in Boston (133 Portland Street). Attorney Nick Poser will represent the Reading
Retirement Board.
Dan Seferian will attend the hearing if needed.
• William H. Dewsnap, who retired from the police department as a detective on January 31, 1973, passed away
on September 12, 2005. His wife predeceased him.
• Copies of the following Reading Retirement Board reports will be handed out for review:
General Ledger Trial Balance as of August 31, 2005.
Bank Reconciliation for the month ending August 31, 2005.
The PRIT fund's monthly statement & fund performance for period ending August 31, 2005.
PRIT's performance summary for the periods ending June 30, 2005
• October's meeting date was set for Ocotober 26, 2005.
MEMORANDUMS & LETTERS RECEIVED
Letter from Karen DeAngelis
PERAC's Report on the Examination of the Reading Retirement System as of January 1, 2002 to December 31,
2004.
PERAC — Memo # 26/2005 — procedures to be followed for those attending or conducting Medical Panels and
Restoration to Service Examinations
PERAC — Memo # 27/2005 — summary of Recent Federal Case Regarding Status of Disability Retirement
Allowances For Federal Income Tax Purposes
PERAC.— Memo stating that PERAC'S case manager has determined that Michael Grunzweig, disability retiree
from the RMLD, is unable to perform the essential duties of his job. No action is needed by the Board.
PERAC Disability Unit has evaluated Michael Grunzweig for possible return to service. PERAC's internal Nurse
Case Manager has determined that he is unable to perform the essential duties of his job.
MACRS — Memo concerning legislation on minimum pensions and option B retirements.
ADJOURNMENT
• BETH KLEPEIS moved to adjourn this open session at 7:45 P.M.
SECONDED BY: DAN SEFERIAN
VOTED: (5- 0- 0)UNANIMOUS
v�
C airman, Joseph R. Veno, 2"" elected
Richard P. Foley, Ex Officio
Q"iy �)
ElizatWth W. Klepeis, I" appoi ted
Francis P. Driscoll, I" elected
Vice Chairman, Dariio. Seferian, 2' appointed