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HomeMy WebLinkAbout2022-01-27 Retirement Board Minutes� OFq�o Town of Reading 0?• - �i Meeting Minutes �9'IMCOA�� Board - committee - Commission - Council: Retirement Board Date: 2022-01-27 Time: 9:30 AM RECEIVED TOWN CLERK READING, MA. R -c 2022 APR -6 PM 1:47 Building: Reading Retirement Administration Location: Conference Room Address: 2 Haven Street Unit 307 Session: Open Session Purpose: Attendees: Members - Present: David Gentile Sharon Angstrom Joseph Coughlin John Halsey Members - Not Present: Carol Roberts Others Present: Elaine Kelly Version: Final Minutes Respectfully Submitted By: Elaine Kelly Topics of Discussion: Page I 1 1929 MINUTES OF THE READING RETIREMENT BOARD MEETING Thursday January 27, 2022 The Reading Retirement Board held a regular session meeting on January 27, 2022 remotely in The Conference Room at 2 Haven Street, Unit 307, Reading, Massachusetts via Zoom. The meeting was called to order at 9:30 A.M. by Chairman David Gentile with board members Sharon Angstrom, Joseph Coughlin, John Halsey and Assistant Board Administrator Elaine Kelly. Carol Roberts was unable to attend. MINUTES • Minutes from the November 24, 2021 regular session will be signed by all board members at a later date, except Sharon Angstrom who was unable to attend. • Minutes from the December 7, 2021 special session will be signed by all board members at a later date. • SHARON ANGSTROM moved to accept the minutes from the December 22, 2021 regular session. SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS The Board is concerned that the minutes, in general, do not reflect any discussions that the Board may have had at the Board meetings. The Board suggests including any discussions that were had, thus making it more helpful for anyone reading the minutes to have abetter sense of questions that arose and decisions that were made, with regard to agenda items. The Assistant Administrator will make that adjustment. SHARON ANGSTROM moved to accept the minutes from the January 6, 2022 special session. SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS 1930 -a The Chairman would like to receive the previous month's minutes earlier than is currently being provided to him, in advance of the next scheduled Board meeting. The Assistant Administrator will make that adjustment. APPROVAL OF NEW MEMBERS, RETIREMENTS. TRANSFERS. AND REFUNDS • SHARON ANGSTROM moved to approve the following new members: Guivenson Brizard Police Officer Date of hire —12/27/21 9%+ 2% Gr. 4 (Police) Date of membership — 07/08/19 Transfer from Barnstable Mackenzie Irwin Asst Director Date of hire — 06/29/09 9%+2% Gr I (School) Community Ed Date of membership — 01/03/22 Thomas Hopkins Laborer Date of hire — 01/10/22 9%+2% Gr.I (DPW -Water) Date of membership — 01/10/22 Michael Davis Police Officer Date of hire — 01/17/22 9%+2% Or.4 (Police) Date of membership — 08/17/16 Transfer from State Brian Sculley Police Officer Date of hire — 01/24/22 9%+2% Or.4 (Police) Date of membership — 01 /24/22 Karl Granoth Firefighter/ Date of hire - 01/24/22 9%+ 2% Gr. 4 (Fire) Paramedic Date of membership — 01 /24/22 Joseph Hubbard Laborer Date of hire — 01 /24/22 9%+ 2% Gr. I (DPW -Highway) Date of membership -01/24/22 SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS Joseph Coughlin asked for clarification on the school employee being a member of this system. It was explained; because he is not a teacher, he is mandated to become a member of the Reading Retirement System as opposed to Mass Teachers Retirement System. 1931 !1 • SHARON ANGSTROM moved to approve the final calculation for the following retirement application: Paul Galvin System Integrator 04/05/22 (RMLD) $ 42,627.64 Frank Falco SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS 21 yrs, 7 mths Option C • SHARON ANGSTROM moved to approve the following transfer of funds to other systems: Kerry Meisinger To Essex Regional Ret Board $92.30 Interest earned on trsfer in (School) (Original transfer of funds was forwarded on 8/31/21- No additional liability for service) Richard Fedele To Concord Retirement Board $191,770.58 21 years, 9 mths (RMLD) $ 42,627.64 Frank Falco To Peabody Retirement Board $2,292.67 6 months, 18 days (DPW — Water) SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the following refunds of accumulated deductions Rahul Shah Terminated 05/30/19 4 years (RMLD) Total deductions & interest $ 42,627.64 Less 20% Federal Taxes $ 0.00 Net Refund (Rollover) $ 42,627.64 y� 1932. SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS • SHARON ANGSTROM moved to approve a 3.5% COLA for calendar year 2022 for the Board Administrator and Assistant Board Administrator. SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS A 3.5% COLA increase was agreed upon by the Board members at the November 24, 2021 Board meeting, for budgetary purposes only, therefore a vote is required. This increase was effective on January 1, 2022. • SHARON ANGSTROM moved to approve the January 2022 wire transfer from PRIM to MMDT in the amount of $750,000.00 SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS I SHARON ANGSTROM moved to approve the January 2022 wire transfer from MMDT to Reading Co-op in the amount of $1,223,151.75. 1933'' SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve a transfer of $2.7M from MMDT to PRIM: SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS The Chairman asked for the current balance in the MMDT account. It is recorded under INFORMATION/QUESTIONS on the agenda as $6,208,498.18. The MMDT is in excess of the $3M account balance that the Board agreed upon. The Board instructed the Assistant Administrator to notes the Town Treasurer to move the funds from the MMDT account to PRIM. The Assistant Administrator will coordinate with the Administrator to instruct the Treasurer to move 1.7Mfrom the MMDT account to PRIM. The Board would like to see the agendas reflect the exact date when the transfers occurred The Assistant Administrator will coordinate with the Administrator and will make the adjustment. SHARON ANGSTROM moved to approve to vote on a COLA increase for FY 2023, which begins on July 1, 2022 and ends June 30, 2023, which is reflected in the January 1, 2021 actuarial valuation, at the March 23, 2022 Board meeting. It is limited to a maximum amount of 3% of $14,000. According to the provisions of Chapter 127 of the Acts of 1999, the Reading Retirement Board must annually notify the proper legislative body 30 days before a publicly posted meeting where the Reading Retirement Board decides whether to elect to grant an increased COLA (must be March meeting or later date). SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS 1934 The Assistant Administrator will coordinate with the Administrator to notify the proper legislative body that the Reading Retirement Board will vote on a COLA increase jar FY 2023 at the March 23, 2012 Board meeting. The Chairman informed the Board that the Administrator has a medical note and will not be participating in the Board meetings until at least March. APPROVAL OF INVOICES TO BE PAID • SHARON ANGSTGROM moved to approve the following warrant #AP012022 totaling $1,392,357.59: Commonwealth of Mass. $ 1,016.34 RHA Health Ins. Deductions Commonwealth of Mass. $ 1,557.88 State Tax Deductions Internal Revenue Service $ 92,127.37 Federal Tax Deductions Reading Credit Union $ 48,791.00 Credit Union Deductions Jan Retirement Allowances $ 899,232.52 Net Retiree Payroll Town of Reading Treasurer $ 67,282.29 Hlth, Life, & Dental Ins. Deductions Town of Reading Treasurer $ 12,318.56 Jan Staff Salary & Benefits GWT Realty $ 3,083.00 Rent Law Office of Michael Sacco $ 1,350.00 Legal Expense - Mise Canon Financial Services $ 168.48 Service Contracts — Copier Reading Municipal Light Dept $ 78.60 Admin Expense — Electric National Grid $ 49.46 Admin Expense — Heat/Gas Somerville Retirement System $ 799.47 Section 3(8)(c) Reimb for 2021 MACRS $ 600.00 Admin Expense 2022 Annual Dues Essex Regional Retirement Bd $ 92.30 Transfer to Other System — K. Meisinger (interest only) Andover Retirement Board $ 6,280.19 Section 3(8)(c) Reimb for 2021 Concord Retirement Board $ 191,770.58 Transfer to Other System — R. Fedele Winthrop Retirement Board $ 3,355.53 Section 3(8)(c) Reimb for 2021 Lawrence Retirement Board $ 8,473.55 Section 3(8)(c) Reimb for 2021 Braintree Retirement Board $ 7,510.16 Section 3(8)(c) Reimb for 2021 Peabody Retirement Board $ 2,292.67 Transfer to Other System — F. Falco USPS $ 1,500.00 AdminExpense— postage Principal Trust Company $ 42,627.64 Return of accumulated deductions — Rollover Rahul Shar SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye _ I DAVID GENTILE Aye 1 VOTED: (4-0-0) UNANIMOUS 1935'= • Delia Quinlan, who worked for the School Dept. and retired on March 10, 1995, passed away on January 4, 2022. She chose Option B at her retirement but there are no remaining funds. • A COLA reimbursement of $45,556.15 from the State for the period 7/1/21-12/31/21 was received on 12/10/21. • As of January 20, 2022, the balance in the MMDT account is $6,208,498.18. • A transfer amount of $5,826.76 dated 12/31/21 was received from the Middlesex County Retirement System for Brett McCoy. The Middlesex County Retirement System will accept liability for 1 year, 6 months and 23 days of creditable service. • A transfer amount of $57,936.93 dated 12/30/21 was received from the Danvers Retirement System for Adetokunbo Solarin. The Danvers Retirement System will accept liability for 6 years and 8 months of creditable service. (Dukes County - 2 years; Somerville - 4 years I month; Danvers - 7 months). Additional interest of $32.28 will be transferred the following month. • A transfer amount of $11,404.72 dated 12/31/21 was received from the Essex Regional Retirement System for Meghan McCabe. The Essex Regional Retirement System will accept liability for 3 years and 4 months of creditable service. • A transfer amount of $53,483.66 dated 12/31/21 was received from the Concord Retirement System for Brent Getchell. The Concord Retirement System will accept liability for 9 years and 11 months of creditable service (Boston — 5 years, 8 months; Concord — 4 years, 3 months). • A transfer amount of $28,282.95 dated 12/31/21 was received from the Massachusetts Teachers Retirement System (MTRS) for Andrew Goetschius. The MTRS will accept liability for 4 years and 4 months of creditable service. • Copies of the following Reading Retirement Board reports were emailed for review: The PRIT fund's monthly statement & fund performance for period ending Dec 31, 2021 General Ledger Trial Balance as of Dec 31, 2021 Cash Receipts, Adjustments, and Disbursements as of Dec 31, 2021 Bank Reconciliation for the month ending Dec 31, 2021 Reading Co-op Bank Statement for the month ending Dec 31, 2021 MMDT Bank Statement for the month ending Dec 31, 2021 Bank Reconciliation for wire amount with current balance of bank accounts The next regular board meeting is scheduled for Wednesday, February 23, 2022 at 9:30 AM, via a Zoom Meeting `-J 1936 MEMORANDUMS & LETTERS RECEIVED PERAC Memo # 1/2022 — Fraud Attempt PERAC Memo #2/2022 — 2022 Limits under Chapter 46 of the Acts of 2002 PERAC Memo #3/2022 — 2022 Limits under Section 23 of Chapter 131 of the Acts of 2010 PERAC Memo #42022 — COLA Notice PERAC Memo #4x/2022 — Clarification of Previous COLA Notice Memo PERAC Memo #5/2022 - 2022 Interest Rate set at 0.1% PERAC Memo #6/2022 — Mandatory Retirement Board Member Training — I" Quarter 2022 PERAC Memo #7/2022 — Buyback and Makeup Repayment Worksheets Email received from Endri Kume — Concern for the Retirement Legal Cost The Board members had a discussion in reference to the email the Chairman received from Endri Kume, Town Treasurer regarding the request and subsequent denial of an annual $3,000 Stipend, recorded at the September 23, 2010 Board meeting. John Halsey is looking for clarification since he was not a Board member at the time of the vote. In 1986, Town Meeting accepted an article that would allow the Retirement Board to pay a stipend to the Town Treasurer far services rendered, although a stipend has never been paid At the September 23, 2020 Board meeting, Sharon Angstrom motioned to approve the Treasurer's stipend request, however, it was denied by a majority vote. Subsequently, the Treasurer has appealed the Board's decision to deny his request and it sits with DALA (Division of Administrative Law Appeals) as a pending case. The Treasurer is requesting that this be brought back to the Board for reconsideration, claiming that this has cost the Retirement Board, in legal fees alone, more than the requested yearly stipend, as a result offighting him on this issue. Sharon Angstrom feels strongly that since the Board is a separate, independent entity from the Town and that the Treasurer, by law, has to perform work for the Board, the Retirement Board should pay the Treasurer the stipend, suggesting that the Board should not expect him to work for free. She pointed out that the Board has the authority to grant the stipend but has chosen not to do so and that if the Board requested this vote at Town Meeting, then why would they not execute? She feels that the Board is being stubborn for no good reason and also noted that getting a new tax ID # would create more work for the Treasurer. The Chairman reiterated this by stating that the Board was given discretionary power at Town .' Meeting. It does not mean that the Board is required to grant the Treasurer a yearly stipend. The Chairman stated that this is the Treasurer's job and as the custodian of the funds, he's bound by law. J He feels that this is unfortunate that we have had to incur all these legal expenses but states that the ' Treasurer didn't have to appeal it bringing us to where we are now. John Halsey was not part of the stipend discussion, but this is how he views it. Endri works for the town and one of his responsibilities, his job description at the town, calls for him to do certain things on behalf of Retirement. As an employee of the town, making him an employee or consultant of the Retirement Board does not make sense. If this is an added expense, he suggested that perhaps the Town of Reading pay the Treasurer on behalf of the Retirement Board, with the Retirement Board reimbursing the Town. He does not want this to be misconstrued as the Retirement Board having another employee, beyond the two they currently employ. He doesn't feel this is an unreasonable request and that it's a small amount to pay for all the reporting services. If the Treasurer's position at the town creates certain extra requirements beyond his normal expectation of work, then the town needs to pay him. However, if this expense is created because of the Retirement Board, then we need to reimburse the town. As a result, you will end up with a clear $3,000 expense per year. John stated that in fairness to the Treasurer, the Chairman controls the agenda and the Treasurer is simply asking the Chairman to put it back on the agenda for reconsideration. He feels that there are sufficient thoughts and opinions that warrant it to be put back on the agenda. Joseph Coughlin stated that he had a hard time back in 2020 when the stipend was on the agenda and he stated that he could have voted either way. He agrees that if the Treasurer is incurring extra work, the stipend is a small amount to pay for his services and that the town should be paying him for that He too does not want another employee. He also feels that it's very unproductive and unfortunate to be paying all these legal expenses and agrees that it should be put back on the agenda for reconsideration. The Board would like to get an estimate of the legal invoices and what expenses it has incurred to date, as well as any pending legal expenses pertaining to this matter. The Assistant Administrator will coordinate with the Administrator to obtain an estimate of legal expenses. The Chairman stated that he will put this back on the agenda for reconsideration, if the Board members feel that it is justified The Chairman stated that the Administrator's review process will be done on February 23, 2022 in open session and will also go into executive session to discuss negotiation strategy. The Board agreed that February will be a long meeting so it makes more sense to put the Treasurer's stipend request on the March agenda. John Halsey pointed out that this will be Joseph Coughlin's last meeting and since he was involved in the vote, it should be put on the March agenda to have Joseph's input. The Assistant Administrator will coordinate with the Administrator to put this agenda item on the March agenda. OLD BUSINESS Draft 2 of the Employee Handbook and Draft I of the Job Descriptions were sent to all Board members and Retirement staff. 1938 Sharon Angstrom reached out to Judith Corrigan in Legal at PERAC for guidance as to whether an RFP is required to hire legal council to review the job descriptions of the Retirement office staff however, she has not responded. John Halsey thinks going out to bid for a labor attorney is ridiculous and feels it is unacceptable that PERAC has not responded to Sharon's request. As an alternative, John suggested calling Any. Sacco for recommendations for a labor attorney. Sharon will call Any. Sacco looking for guidance on how to proceed and recommendations for labor attorneys. The Board gives Sharon the authority to choose a labor attorney, from the recommendations she receives from Atty. Sacco, to review both job descriptions. As long as an RFP is not required and the cost is not outrageous, Sharon will proceed. The Chairman would like 10 hold another special session to discuss specifically the Employee Handbook and Job Descriptions. The Board members agreed to hold this special meeting on February 28, 2022 at 9.30 AM, remotely or in person to be determined. Sharon Angstrom will provide the Administrator's evaluation form to the Board members and each Board member will independently and without any discussion with any other Board member, fill out the evaluation form and email it back to Sharon including rankings and general comments. Performance evaluation comments for the Administrator will be due to Sharon on the form by February 14, 1022. Sharon will collectively tally the data provided on the evaluation form. The data will be discussed by and between the Board members and the Administrator as part of the annual review process. The review process will be held in open session on February 23, 2022, with the Board members, subsequently going into Executive session to discuss negotiation strategy for each employee. The Board will then meet individually, with each employee, in executive session to negotiate compensation. When the compensation is determined, it will be placed on an agenda for an open session and the Board will vote on each employees' compensation level during the open session. The performance review for the Assistant Administrator will be administered by the Administrator, with the Chairman present, on February 9, 2022. The Chairman will instruct the Administrator to give a blank copy of the evaluation form to the Assistant Administrator for her to complete prior to the February 9t1 meeting. The Chairman will have each Board member provide commenWobservations via email to the Chairman no later than February 4, 2012, without copying any other Board member. NEW BUSINESS OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING I'd I1939' - I ADJOURNMENT • SHARON ANGSTROM moved to adjourn this open session at 11:10 AM .. SECONDED BY: JOHN HALSEY ROLL CALL VOTE: SHARON ANGSTROM Aye JOHN HALSEY Aye JOSEPH COUGHLIN Aye DAVID GENTILE Aye VOTED: (4-0-0) UNANIMOUS Chm'®an David entde, 1" el & r w 1 a�4� . Sharon M. Angstrom, Ex O io C_ n\- h 0 A CK Vice Chairman Carol B. Roberts, I" appointed (ABSENT)