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Home My WebLink About2011-12-13 Retirement Board Minutes1235 MINUTES OF THE READING RETIREMENT BOARD MEETING Tuesday, December 13, 2011 The Reading Retirement Board held a regular session meeting on December 13, 2011, in The Lower Level Conference Room Town Hall, Reading, Massachusetts. The meeting was called to order at 6:00 P.M. by Chairman Joseph Veno in the presence of members Richard Foley, Gail LaPointe, Francis Driscoll, Thomas Clough, and Board Administrator, Colleen Loughlin. MINUTES • Regular session minutes for the October 25, 2011 meeting were signed by all board members. • FRANCIS DRISCOLL moved to accept the November 22, 2011 regular session minutes as written. SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following retirement application: Joan Lavoie School (Superannuation) SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS 1/5/12 23 years, 10 months Option A • FRANCIS DRISCOLL moved to approve the FY13 Budget as amended. Will adjust travel and professional development due to the mandatory retirement board member training. SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS • FRANCIS DRISCOLL moved to approve request from eligible member to purchase prior non - membership service for creditable service: Rachid Kourbali Reading 8/24/09- 11/7/10 1 year, 2 months, 14 days The total purchase amount is $3,384.72. Rachid will begin payroll deductions with the December 23, 2011 pay period. SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS 1236 • FRANCIS DRISCOLL moved to accept the allocated lump sum settlement of Mark Spataro's Accidental Disability: SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS • FRANCIS DRISCOLL moved to allow remote participation, 940 CMR 29.10: SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS APPROVAL OF INVOICES TO BE PAID • FRANCIS DRISCOLL moved to approve the following warrant #AP 122011 totaling $651,679.94: Commonwealth of Mass. $ 583.72 RHA Health Ins. Deductions Commonwealth of Mass. $ 1,969.11 State Tax Deductions Commonwealth of Mass. $ 216.66 Child Support Internal Revenue Service $ 58,649.03 Federal Tax Deductions Reading Credit Union $ 32,423.00 Credit Union Deductions Dec. Retirement Allowances $ 506,710.32 Net Retiree Payroll Town of Reading Treasurer $ 47,166.85 Hlth, Life, & Dental Ins. Deductions Town of Reading $ 174.04 Postage due Town Town of Reading Treasurer $ 3,697.65 December's Administrator's Salary Kingsbury Press $ 89.56 Administrative Expense — 1099R's SECONDED BY: RICHARD FOLEY VOTED: (5 -0 -0) UNANIMOUS INFORMATION /QUESTIONS /OTHER ITEMS • Patricia Shields, school employee who works 22 pay periods, was not having the correct amount withheld for her 2% retirement deductions. The Treasurer has brought this to the school's attention and the issue has been corrected going forward. The member owes the Reading Retirement System $260.12. The Board agreed to allow her to make installments in a reasonable timeframe. • Paul Todisco, Senior Client Services Officer from the PRIM Board, PRIT, would like to attend the February 21, 2012 board meeting to discuss the performance of the funds in PRIT. • Received an email from Daniel Sherman informing the board that he has established a new actuarial consulting services firm: Sherman Actuarial Services, LLC. • The Board received notice from PERAC that the amount to be appropriated for the Reading Retirement System for FY13 is $4,543,434. • The Board received notice from PERAC that the funding schedule recently adopted has been approved. The schedule assumes payments are made July 1 and January 1 each fiscal year. 1 • Received a draft copy of the Lump Sum settlement agreement from Attorney Alan Pierce for Accidental Disability retiree Mark Spataro. The attorney is inquiring if the allocations are acceptable to the Board as to allow Mr. Spataro to receive his full 72% ADR benefit following approval of this settlement. Spoke to Judy 1,237 Corrigan, Legal Department at PERAC, for guidance on how a value is placed on the loss of function. Judy Corrigan suggested we speak to the board's legal council. After review, the Board agreed that the allocation seemed reasonable. • Affidavits were mailed to all retirees on November 28, 2011. There are 7 affidavits still due. Final notices will be sent out. • Richard Surette, who worked for DPW and retired on February 2, 1987, passed away on 12/7/11. He chose Option A at his retirement. • Received letter from Alliant Insurance Services inquiring if Reading Retirement Board would like to be included in the Fiduciary and Fidelity Insurance Program. Reading Retirement Board has a bond with Cabot Risk Strategies LLC with a $500,000 limit; $100,000 Blanket plus the Excess $400,000 for each board member. • Copies of the following Reading Retirement Board reports were handed out for review; General Ledger Trial Balance as of October 31, 2011. Bank Reconciliation for the month ending October 31, 2011. • The next board meetings are scheduled for January 24, 2012, February 21, 2012, and March 27, 2012 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #32/2011 — Age 70 -1/2 Distribution PERAC Memo #33/2011 — Regular Compensation PERAC Memo #34/2011 —Placement Agency Policy PERAC Memo 435/2011 — Chapter 176 of the Acts of 2011: An Act Providing for Pension Reform and Benefit Modernization (Governance Provisions) PERAC Memo 436/2011 — Chapter 176 of the Acts of 2011: An Act Providing for Pension Reform and Benefit Modernization (Non- Governance Provisions) PERAC Memo #37/2011 — Submitting Actuarial Data via SFED PERAC Memo #38/2011 —,Mandatory Retirement Board Member Training — Chapter 176 of the Acts of 2011, an Act providing for Pension Reform and Benefit Modernization, includes provisions mandating that retirement board members complete training during each year of service on the retirement board. During each member's term on the retirement board, the member must complete 18 hours of training. PERAC Pension Newsflash OLD BUSINESS OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING 1237 Corrigan, Legal Department at PERAC, for guidance on how a value is placed on the loss of function. Judy Corrigan suggested we speak to the board's legal council. After review, the Board agreed that the allocation seemed reasonable. • Affidavits were mailed to all retirees on November 28, 2011. There are 7 affidavits still due. Final notices will be sent out. • Richard Surette, who worked for DPW and retired on February 2, 1987, passed away on 12/7/11. He chose Option A at his'retirement. • Received letter from Alliant Insurance Services inquiring if Reading Retirement Board would like to be included in the Fiduciary and Fidelity Insurance Program. Reading Retirement Board has a bond with Cabot Risk Strategies LLC with a $500,000 limit; $100,000 Blanket plus the Excess $400,000 for each board member. • Copies of the following Reading Retirement Board reports were handed out for review: General Ledger Trial Balance as of October 31, 2011. Bank Reconciliation for the month ending October 31, 2011. • The next board meetings are scheduled for January 24, 2012, February 21, 2012, and March 27, 2012 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo 432/2011 — Age 70 -1/2 Distribution PERAC Memo #33/2011 — Regular Compensation PERAC Memo #34/2011 — Placement Agency Policy PERAC Memo #35/2011 — Chapter 176 of the Acts of 2011: An Act Providing for Pension Reform and Benefit Modernization (Governance Provisions) PERAC Memo #36/2011 —Chapter 176 of the Acts of 2011: An Act Providing for Pension Reform and Benefit Modernization (Non- Governance Provisions) PERAC Memo #37/2011 — Submitting Actuarial Data via SFED PERAC Memo 938/2011 — Mandatory Retirement Board Member Training — Chapter 176 of the Acts of 2011, an Act providing for Pension Reform and Benefit Modernization, includes provisions mandating that retirement board members complete training during each year of service on the retirement board. During each member's term on the retirement board, the member must complete 18 hours of training. PERAC Pension Newsflash OLD BUSINESS OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING 113 • FRANCIS DRISCOLL moved to adjourn this open session at 6:40 P.M. SECONDED BY: THOMAS CLOUGH VOTED: (5 -0 -0) UNANIMOUS C irman, Joseph R. Veno, 2" elected Gail LaPointe, Ex Officio ,ice 0, aL Richard P. Foley, I" ap ointed Vice C hairman, Francis P. %Driscoll, I" elected l// irnco a r�,/�.,,G. Thomas A. Clough, 2" ppointed t!