HomeMy WebLinkAbout2014-05-27 Retirement Board Minutest. 1V�INUTES OF THE READING RETIREMENT BOARD MEETING
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The Readi'rtg�Re`#irement Board held a regular session meeting on May 27, 2014, in The Lower Level Conference
Room, Town Hall a assachusetts.
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The meeting was called to order at 6:00 P.M. by Chairman Francis Driscoll in the presence of members Richard
Foley, Sharon Angstrom, Thomas Clough, Joseph Veno and Board Administrator, Colleen Loughlin.
MINUTES
• Regular session minutes for the March 25, 2014 meeting were signed by all board members.
• JOSEPH VENO moved to accept the April 22, 2014 regular session minutes as written, except Francis
Driscoll who was not present.
SECONDED BY: THOMAS CLOUGH
VOTED: (4 -0 -1) ABSTAINED: FRANCIS DRISCOLL
APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS
• JOSEPH VENO moved to approve the following retirement application:
Steven Perry Lineman First Class 6/11/14 37 years, 2 mths
(RMLD)
SECONDED BY: THOMAS CLOUGH
VOTED: (5 -0 -0) UNANIMOUS
• JOSEPH VENO moved to approve the following refund of accumulated deductions:
Jason Watkins Resigned 11/12/13 3 years, I mth
(Cemetery) Total deductions & interest $ 10,623.52
Less 20% Federal Taxes $ 2,124.70
Net refund (cash) $ 8,498.82
SECONDED BY: THOMAS CLOUGH
VOTED: (5 -0 -0) UNANIMOUS
• JOSEPH VENO moved to approve the final calculation for the following retirement approved by PERAC:
Louis DeBrigard, Jr
(Superannuation)
DPW 3/29/14
Annuity:
Pension:
Yearly:
Monthly
SECONDED BY: THOMAS CLOUGH
VOTED: (5 -0 -0) UNANIMOUS
46 years, 2 mths Option C
$10,453.32
$46,262.16
$56,715.48
$ 4,726.29
1366
APPROVAL OF MISCELLANEOUS ITEMS
• Approve or deny Lisa Palermo's "Application for Disability Retirement."
The Reading Retirement Board received from PERAC the Medical Panel Certificate & report by the regional
medical panel for Lisa Palermo. The next step is for the Board to approve or deny Lisa's application and, if
approved, send to PERAC for their approval.
TABLED — Board does not have the response from the Clarification Request to the Medical Panel.
JOSEPH VENO moved to approve to vote on a COLA increase for FY2015, which begins on July 1, 2014
and ends June 30, 2015, which is reflected in the July 1, 2013 actuarial valuation. It is limited to a maximum
amount of 3% of $12,000.
SECONDED BY: THOMAS CLOUGH
VOTED: (5 -0 -0) UNANIMOUS
APPROVAL OF INVOICES TO BE PAID
JOSEPH VENO moved to approve the following warrant #AP052014 totaling $743,980.86:
Commonwealth of Mass.
$
509.08
RHA Health Ins. Deductions
Commonwealth of Mass.
$
1,604.63
State Tax Deductions
Commonwealth of Mass.
$
1,684.35
Child Support
Internal Revenue Service
$
65,935.80
Federal Tax Deductions
Reading Credit Union
$
34,367.00
Credit Union Deductions
May Retirement Allowances
$
577,120.91
Net Retiree Payroll
Town of Reading Treasurer
$
45,874.76
Hlth, Life, & Dental Ins. Deductions
Town of Reading
$
199.20
Postage due Town
Town of Reading Treasurer
$
5,173.54
May Administrator's Salary & MedFICA
Law Offices of Attorney M. Sacco
$
720.00
Legal Services (L.Palermo) &
Legal case matters
New England Office Supply
$
89.45
Supplies
Thomson Reuters - West
$
78.62
Chapter 32 inserts
Jason Watkins
$
8,498.82
Refund to Member
Internal Revenue Service
$
2,124.70
Refund to Member — 20% Federal Tax
SECONDED BY: THOMAS CLOUGH
VOTED: (5 -0 -0) UNANIMOUS
INFORMATION /QUESTIONS /OTHER ITEMS
• Discussed the possibility of issuing a memo to active members regarding the reduction to Option C when
reaching 80 %. Will need clarification from PERAC to be able to explain to members.
• Dorothea Provenzano, Option D beneficiary of Salvatore Provenzano, died May 15, 2014.
• A transfer amount of $88,344.65 dated 5/19/14 was received from Essex Regional Retirement Board for
Louis Caputo, School Network Administrator. Essex Regional Retirement System will accept liability for 3
years and 7 months of creditable service. State Retirement System will accept liability for 8 years and 9
months of creditable service.
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• After further review, PERAC has determined that retiree, John Green, did not exceed his allowable earnings
for 2012. The income reported on a 1099MISC submitted by Mr. Green was not considered earned income as
a result of being a retirement gift. This decision has no bearing on subsequent years' reported income.
Copies of the following Reading Retirement Board reports were handed out for review:
The PRIT fund's monthly statement & fund performance for period ending April 30, 2014.
General Ledger Trial Balance as of April 30, 2014.
Cash Receipts, Adjustments, and Disbursements as of April 30, 2014.
Bank Reconciliation for the month ending April 30, 2014.
Reading Co -op Bank Statement for the month ending April 30, 2014.
MMDT Bank Statement for the month ending April 30, 2014.
The next board meeting is scheduled for Tuesday, June 24, 2014 at 6:00 pm in the Lower Level Conference
Room.
MEMORANDUMS & LETTERS RECEIVED
PERAC Memo # 16/2014 - Follow -up on Anti - Spiking Exemptions
PERAC Memo 917/2014 — IRS Private Letter Ruling dated August 20, 2013 — The Internal Revenue Service
( "IRS ") has issued a Private Letter Ruling ( "PLR ") to PERAC regarding the federal tax status of certain disability
and death payments made by the systems. The annuity portion of a retirement allowance is always subject to
taxation, but the taxability of other portions of a retirement allowance had been in question. In summary, the
taxability for benefits for survivors was taxable, the survivor's benefit will be taxable. If a member's benefit was
not taxable, the survivor's benefit will not be taxable. Similarly, COLA's will be subject to taxation only to the
extent the underlying benefit was subject to taxation.
PERAC Memo # 18/2014 — Fund of Funds /Manager of Managers Policy Implementation
PERAC Pension Newsflash — PERAC Chairman Domenic Russo passed away.
OLD & NEW BUSINESS
OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF
MEETING
ADJOURNMENT
• JOSEPH VENO moved to adjourn this open session at 6:40 P.M.
SECONDED BY: THOMAS CLOUGH
VOTED: (5 -0 -0) UNANIMOUS
1388
Chairman, Francis P. Driscoll, I" elected
Sharon M. Angstrom, Ex OflIcio
rI n
Richarg P. Foley I" app inted
moo'
V' e Chairman, Joseph R. Veno„ 2" elected
Thomas Clough, 2 "d app6 ted