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Home My WebLink About2020-04-22 Retirement Board Minutes R Town of Reading RE 0 E IV ED Meeting Minutes TOWN CLERK RL-%C Co.°' MA. PJPIRryP� f� Board - Committee - Commission - Council: t$"{ F -� IM 11: 35 Contributory Retirement Board Date: 2020-04-22 Time: 9:30 AM Building: Reading Retirement Administration Location: Conference Room Address: 2 Haven Street Unit 307 Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: Thomas Clough Sharon Angstrom Carol Roberts David Gentile Joseph Coughlin Members - Not Present: Others Present: Colleen Loughlin - Board Administrator Elaine Kelly - Asst Board Administrator Minutes Respectfully Submitted By: Elaine Kelly Topics of Discussion: Page 1 ► 173 MINUTES OF THE READING RETIREMENT BOARD MEETING Wednesday April 22, 2020 The Reading Retirement Board held a regular session meeting on March 25, 2020 remotely in The Conference Room at 2 Haven Street, Unit 307, Reading, Massachusetts. The meeting was called to order at 9:30 A.M. by Chairman Thomas Clough via telephone conference call with board members Sharon Angstrom, Carol Roberts, David Gentile, Joseph Coughlin, Board Administrator Colleen Loughlin, and Asst Board Administrator Elaine Kelly. MINUTES • Minutes from the January 22, 2020 regular session will be signed at a later date by all board members, except Thomas Clough who was unable to attend. • Minutes from the February 24, 2020 regular session will be signed at a later date by all board members, except Thomas Clough and David Gentile who were unable to attend. • SHARON ANGSTROM moved to accept the minutes from the March 25, 2020 regular session. SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS APPROVAL OF NEW MEMBERS RETIREMENTS,TRANSFERS,AND REFUNDS . • SHARON ANGSTROM moved to approve the following new member: Sean Donahue Human Resource Date of hire—04/13/20 9% +2% Or. I (Admin Services) Director Date of membership-2/19/13 (Re-hire) SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye f• VOTED: (5-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the following refund of accumulated deductions: Mitchell Fisher Terminated 02/28/20 11 months (DPW) Total deductions& interest $ 3,496.08 Less 20%Federal Taxes $ 704.95 Net Refund (Cash) $ 2,819.82 SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the revised final calculation due to retro pay for the following retirement approved by PERAC: Scott Williams RMLD 05/28/19 32 yrs, 0 mths Option C (Superannuation) Yearly: $74,671.92 ((SEMonthly: $ 6,222.66 CONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS • SHARON ANGSTROM moved for the board to vote to postpone action on the COLA until the May meeting. This way the 30-day requirement under Section 103 (s. 51 of c. 127 of 1999) is complied with fully. The Board will vote on a COLA increase for FY 2021, which begins on July 1, 2020 and ends June 30, 2021, which is reflected in the January 1, 2019 actuarial valuation. It is limited to a maximum amount of 3%of$14,000. x`775 SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the Annual Statement for PERAC for calendar year ended December 31, 2019,per adjustment for actuarial services. SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve request from eligible member to purchase prior non- membership service for creditable service: Janet Walsh Reading Retirement Board 9/29/19 - 12/19/19 3 months i The total principal purchase amount is $2,615.98. Janet Walsh will purchase this creditable service with a one-time deduction from her bi-weekly payroll. . SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the April 2020 wire transfer from PRIM to MMDT in the amount of$750,000.00. SECONDED BY: CAROL ROBERTS 1776 = 1' ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMASCLOUGH Aye VOTED: (5-0-0) UNANIMOUS SHARON ANGSTROM moved to approve the April 2020 wire transfer from MMDT to Reading Co-op in the amount of$1,039,128.49. SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMASCLOUGH Aye VOTED: (5-0-0) UNANIMOUS APPROVAL OF INVOICES TO BE PAID SHARON ANGSTROM moved to approve the following warrant#AP042020 totaling$1,122,950.61: Commonwealth of Mass. $ 559.77 RHA Health Ins. Deductions Commonwealth of Mass. $ 1,582.88 State Tax Deductions Commonwealth of Mass. $ 1,467.69 Child Support Internal Revenue Service $ 85,070.46 Federal Tax Deductions Reading Credit Union $ 46,706.83 Credit Union Deductions Apr Retirement Allowances $ 819,596.07 Net Retiree Payroll Town of Reading Treasurer $ 59,054.53 Hlth, Life, & Dental Ins. Deductions Town of Reading Treasurer $ 11,878.26 Apr Staff Salary &Benefits GWT Realty $ 3,045.64 Rent Law Office of Attorney Sacco $ 1,540.00 Legal Expenses Canon Financial Services $ 168.48 Service Contracts—Copier Reading Municipal Light Dept $ 74.30 Admin Expense—Electric National Grid $ 37.46 Admin Expense—Heat/Gas Quadient Finance USA, Inc. $ 765.00 Admin Expense—Postage& ink W.B. Mason Co., Inc. $ 144.92 Admin Expense—Supplies Flyers Unlimited $ 164.30 Admin Expense—Envelopes Fiduciary Investment Advisors $ 8,750.00 Investment Consultant Fees Norfolk County Retirement System $ 5,722.61 Section 3(8)(c)Reimb for 2019 Essex Regional Retirement System $ 68,205.32 Section 3(8)(c)Reimb for 2019 Quincy Retirement System $ 4,751.33 Section 3(8)(c) Reimb for 2019 Mitchell Fisher $ 125.99 Return of Erroneous Deductions . 1777 Internal Revenue Service $ 14.00 Federal Tax 10% - erroneous deductions Mitchell Fisher $ 2,819.82 Refund to Member Internal Revenue Service $ 704.95 Federal Tax -20% (M. Fisher) SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye - JOSEPH COUGHLIN Aye '++ DAVID GENTILE Aye ';. THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS INFORMATION/QUESTIONS • Richard Van Hom, who worked as a Firefighter for the Fire Department and retired on March 20, 1987, passed away on March 27, 2020. He chose Option C at his retirement. His spouse, Carol Van Hom, will receive a monthly allowance of $1,291.68, which is 2/3rds of the amount Richard was receiving at the time of his death. • Allan Nickerson, who worked for the Water Department and retired on April 28, 2000, passed away on March 23, 2020. He chose Option B at his retirement but there are no remaining funds. • Norbert Rhinerson, who worked for the RMLD and retired on July 1, 1987, passed away on April 6, 2020. He chose Option C at his retirement. His spouse, Alma Rhinerson, will receive a monthly allowance of $1,264.66, which is 2/3rds of the amount Norbert was receiving at the time of his death. • Robert Castine, who worked as a Police Officer for the Police Department and retired on May 1, 1982, passed away on April 12, 2020. He was an Accidental Disability Retirement and chose Option B at his retirement but there are no remaining funds. • A check was received from the following Boards for full payment of its Section 3(8)(c) reimbursement: • Lexington Retirement Board • Essex Regional Retirement Board • Copies of the following Reading Retirement Board reports were emailed for review: The PRIT fund's monthly statement& fund performance for period ending March 31, 2020 Bank Reconciliation for the month ending March 31,2020 Reading Co-op Bank Statement for the month ending March 31, 2020 MMDT Bank Statement for the month ending March 31, 2020 1778 • The next regular board meeting is scheduled for Wednesday, May 20, 2020 at 9:30 AM remotely in the Conference Room at 2 Haven Street, Unit 307, Reading, MA. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #18/2020—Mandatory Retirement Board Training—2"d Qtr 2020 PERAC Memo#19/2020—Tobacco Company List PERAC Memo#20/2020—Coronavirus Update PERAC Memo 421/2020—Post Retirement Restrictions During the State of Emergency Endri Kume's email dated 4/8/20 regarding 1099's OLD & NEW BUSINESS A known issue related to the 1099R filings with the IRS back in 2015 is triggering recent audit notices. This 1099R file was submitted incorrectly to the IRS by the Town of Reading Treasurer's Department. It contained the wrong information and miscategorized retirement income as royalty and rent. In 2017, the Treasurer's Department resubmitted a corrected 1099R file for 2015. The Town of Reading's Treasurer received a request from a retiree requesting the Treasurer's Office to draft a letter to send to all retirees notifying them that they may receive an audit notice and that they should disregard it. The letter will instruct the retirees to call the Treasurer's Office for assistance in resolving this issue for them. The Treasurer would like the Retirement Board to give authorization to the Treasurer to draft and mail this letter to all retirees explaining the 1099R issue. Although the Retirement Board agrees that a letter needs to be sent, the Retirement Board feels this was not a Retirement Board error and therefore the letter should not come from the Retirement Office but that of the Treasurer's Office. The Town Treasurer and the Town Accountant disagree. OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING ADJOURNMENT • SHARON ANGSTROM moved to adjourn this open session at 10:18 AM: SECONDED BY: CAROL ROBERTS 1779 ' ,' ROLL CALL VOTE: SHARON ANGSTROM Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS Chairman Thomas A. ugh, 2nd appointed Sharon M. Angstrom, Ex Offibio k Z I B. Roberts, 1"appointed avi A. entile, 1"elected V"'epl�. gfughlin, 2nd lected