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HomeMy WebLinkAbout2020-05-07 Retirement Board Minutes r Town of Reading RtGF1VEL) s Meeting Minutes TOWN CLERK RF V_ HPI No -5 AM 11: 35 Board - Committee - Commission - Council: Contributory Retirement Board Date: 2020-05-07 Time: 10:30 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 Endri Kume, Town Treasurer Anne Landry-Select Board Member Anthony Tranghese-FIA Minutes Respectfully Submitted By: Elaine Kelly Topics of Discussion: Page 1 1 1780 = , MINUTES OF THE READING RETIREMENT BOARD MEETING Thursday May 7, 2020 The Reading Retirement Board held a special session meeting on May 7, 2020 remotely in The Conference Room, at 2 Haven Street, Unit 307, Reading, Massachusetts. The meeting was called to order at 10:30 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, Asst Board Administrator Elaine Kelly, Town Treasurer Endri Kume, Select Board Member Anne Landry and Anthony Tranghese from Fiduciary Investment Advisors. Anthony Tranghese, the Retirement Board's investment consultant from Fiduciary Investment Advisors attended the May 7th Board meeting to review 2 topics. The first was to provide an update of the current economic market in light of the pandemic. He took us through the volatility that has occurred in the markets over the past 2+ months and the related reasons. He then provided an update from 2 recent PRIM webinars about the impacts of the pandemic on the PRIT portfolio. Generally speaking, it had held up fairly well given the volatility, but there remains considerable uncertainty at this time. He will continue to provide updates to the Board as the impact of the pandemic warrants. • SHARON ANGSTROM motioned to accept the NIA funding schedule for FY21. SECONDED BY: CAROL ROBERTS ROLL CALL VOTE: SHARON ANGSTRO Aye CAROL ROBERTS Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye THOMAS CLOUGH Aye VOTED: (5-0-0) UNANIMOUS This was revisited per the Town Manager's request. The COVID 19 pandemic is likely to impact the projected revenues for FY21 in the form of reduced state aid and other local receipts. The Town Manager had to cut $2.3 million from the general fund budget based on the projected revenue reductions. The funds from reducing the assessment for FY21 will provide funding for COVID expenses in the FY21 budget. . r 1781 . : >4 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 10998 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 disagreed. After further discussion, The Retirement Board agreed to send this letter to the retirees on the Retirement Board letterhead but noting that Endri Kume, the Town Treasurer, will be the primary contact for any questions the retirees may have. OLD & NEW BUSINESS OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING ADJOURNMENT • SHARON ANGSTROM moved to adjourn this open session at 12:22 PM 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 1782 = � Chairman Thomas A. Cl igh, 2vd appointed Sharon A Angstrom, Ex Otricio C` ' - �\ Cha obels'appointed D vid A. Genii e, 1'elected 429 seph J, o m, Z' electe