The URL can be used to link to this page

Home My WebLink About2022-12-19 Retirement Board Minutes0� FF e Town of Reading �� Meeting Minutes n:/MOPo�� Board - Committee - Commission - Council: Date: 2022-12-19 Time: 9:30 AM RECEIVED TOWN CLERK REAr1!NjC-, NIA. 2823 Mdy -9 PH 1 39 Building: Reading Retirement Administration Location: Conference Room Address: 2 Haven Street Unit 307 Session: Open Session Purpose: Version: Final Attendees: Members - Present: Sharon Angstrom Carol Roberts John Halsey Robert Beck Members - Not Present: David Gentile Others Present: Colleen Loughlin Elaine Kelly Laura Strickland - PRIT Anthony Tranghese - Fiducient Advisors Minutes Respectfully Submitted By: Elaine Kelly Topics of Discussion: Page I 1 2026 < MINUTES OF THE READING RETIREMENT BOARD MEETING Monday December 19, 2022 The Reading Retirement Board held a regular session meeting on December 19, 2022 in The Conference Room at 2 Haven Street, Unit 307, Reading, Massachusetts The meeting was called to order at 9:30 AM by Vice -Chair Carol Roberts with board members Sharon Angstrom, Robert Beck, John Halsey, Administrator Colleen Loughlin, Assistant Administrator Elaine Kelly, Laura Strickland from PRIT and Anthony Tranghese from Fiducient Advisors. Chairman David Gentile was unable to attend. SPECIAL ITEMS • Laura Strickland from PRIM and Anthony Tranghese from Fiducient Advisors attended and presented updates to the Board. Laura reported that it is certainly a different environment than the last Board presentation in 2021 with FY2021 returns proving to be record high, with FY2022 proving to be the weakest market since the global financial crisis over 13 years ago. PRIT fund did continue to outperform although it was down 3%, outperforming the benchmark by about 2%. PRIT fund has constructed to do well and PRIM is pleased with the long-term resiliency of the portfolio. Laura left the meeting at 10:00 AM. Anthony presented an update of the plan through November, including performance and asset allocation. This calendar year has proven to be a challenging one across markets, with broad fixed income and equity markets posting double digit losses to date. In reviewing the asset allocation, Fiducient discussed the flexibility with PRIT sleeves to potentiallymake some adjustments in the future in an effort to continue to align the asset mix with the objectives of the plan. Fiducient will plan to discuss this in more detail at their next Board presentation, likely in the first half of 2023. Anthony Tranghese left the meeting at 10:30 AM • Discussion regarding a 5% Local COLA option. This act provides the local retirement systems with a local option to increase the Cost of Living Adjustment (COLA) for Fiscal Year 2023 to up to 5% on the base amount. The approval of the increase can occur at any time during the fiscal year and will take effect as of July 1, 2022. The Administrator contacted the Board's Actuary at KMS to inquire as to whether they could do a cost valuation to decide how to proceed. This would need to be presented at Town Meeting in the Spring of 2023. Linda Boumival from KMS Actuaries joined in on a conference call to help clarify what this entails and to help the Board members better understand what needs to be done in order to accomplish this . for the retirees. There are concerns that given the timeframe this may be hard to achieve however, the Administrator will supply the required information to Linda Boumival in mid-January, after j closing out 2022. Linda will then prepare an estimated cost value for the Board to approve or deny. .J 2027 - If approved, it will then be presented to FINCOM for their endorsement before presenting to Town Meeting in April 2023. • ROBERT BECK motioned to approve moving forward with KMS Actuaries to prepare an estimated cost value regarding the 5% Local COLA option. The Board will take a final vote after receiving this information. SECONDED BY: VOTED: MINUTES JOHN HALSEY (4-0-0) UNANIMOUS • Minutes from the September 21, 2022 regular session were signed by all board members, except John Halsey and Robert Beck who were unable to attend. • Minutes from the October 20, 2022 regular session were signed by all board members, except Sharon Angstrom who was unable to attend. • Minutes from the October 20, 2022 executive regular session were signed by all board members, except Sharon Angstrom who was unable to attend. • Minutes from the November 14, 2022 regular session were signed by all head members. • Minutes from the November 14, 2022 executive session were signed by all board members. • SHARON ANGSTROM moved to approve the minutes from the November 21, 2022 regular session. SECONDED BY: ROBERT BECK VOTED: (3-0-1) ABSTAINED: JOHN HALSEY APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS, AND REFUNDS • SHARON ANGSTROM moved to approve the following new members as amended: Eric Bagby Firefighter/Paramedic Date of hire — 11/27/22 9%+2% Or.4 (Fire) Date of membership — 11/27/22 Re -hire Benjamin Cues Economic Development Date of hire — 12/12/22 9%+2% Or. 1 (Public Services) Director Date of membership — 10/25/18 Transfer from Chelsea Bernard Hadley Laborer (DPW-Stormwater) SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS 2028 Date of hire — 12/19/22 9%+2% Gr. 1 Date of membership — 12/19/22 • SHARON ANGSTROM moved to approve the following retirement application: Julie MacDonald Admin Asst 12/07/22 14 yrs, 0 mths Option B (DPW) SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the following transfer of funds to other systems: Brandon Kelso To Salem Retirement Board $9,847.33 1 year, 9 months (Technology) SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the following refund of accumulated deductions: Marco Buonopane Terminated 11/4/22 1 month (RMLD) Total deductions & interest $ 1,316.76 Less 20% Federal Taxes $ 263.35 Net Refund (Cash) $ 1,053.41 Lauren Gardner Resigned 11/4/22 3 years, 3 months (Library) Total deductions & interest $22,823.00 Less 20% Federal Taxes S-0 00 Net Refund (rollover) $22,823.00 SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS • SHARON ANGSTROM moved to approve the December 2022 wire transfer from PRIM to MMDT in the amount of $750,000.00 (wire transfer occurs the 219 of every month). SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS 1 2029_ • SHARON ANGSTROM moved to approve the November 2022 additional wire transfer from MMDT to Reading Co-op in the amount of $2,083.45. SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS • SHARON ANGSTROM moved to approve the December 2022 wire transfer from MMDT to Reading Co-op in the amount of $1,225,846.91. SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS APPROVAL OF INVOICES TO BE PAID • SHARON ANGSTROM moved to approve the following warrant #AP122022 totaling $1,237,927.04: Commonwealth of Mass. $ 1,034.78 RHA Health Ins. Deductions Commonwealth of Mass. $ 1,542.88 State Tax Deductions Intemal Revenue Service $ 100,336.04 Federal Tax Deductions Reading Credit Union $ 51,872.06 Credit Union Deductions Commonwealth of Mass. $ 502.67 Child Support Dec Retirement Allowances $ 951,798.53 Net Retiree Payroll Town of Reading Treasurer $ 71,850.86 Hlth, Life, & Dental Ins. Deductions Town of Reading Treasurer $ 14,619.95 December Staff Salary & Benefits Town of Reading Treasurer $ 253.63 Board Stipend/Tremurer Stipend GWT Realty $ 3,083.00 Rent Law Office of Michael Sacco $ 2,386.00 Legal Expense - Misc Canon Financial Services $ 168.48 Service Contracts — Copier Reading Municipal Light Dept $ 77.41 Admin Expense — Electric National Grid $ 69.91 Admin Expense — Heat/Gas Colleen Loughlin, Petty Cash $ 86.76 Admin Expense — Postage Salem Retirement Board $ 9,847.33 Transfer to Other System- B. Kelso Town of Reading Police Dept. $ 240.00 Admin Expenses — Annual Parking Pass Town of Reading $ 966.53 Furniture & Equip — Colored Printer Marco Buonopane $ 1,053.41 Return of accumulated deductions Internal Revenue Service $ 263.35 Return of accum ded-20% federal taxes W.B. Mason Co., Inc. $ 110.92 Admin Expense—supplies Quadient Leasing $ 514.98 Service Contracts — Postage Machine George Mansfield III $ 1,036.62 Erroneous Contributions Internal Revenue Service $ 115.18 10% Fed Taxes — G. Mansfield En-. Ded. Thomas Komola, Jr. $ 176.54 Return of accum ded — contract settled Internal Revenue Service $ 44.14 Return of accum ded — 20% fed taxes Leo Keefe $ 312.06 Return of accum ded- contract settled Internal Revenue Service $ 78.02 Return of accum ded — 20% fed taxes Northwestern Mutual $ 22,823.00 Return of accum ded — L. Gardner Flyers Unlimited $ 662.00 Admin Expense — envelopes 2030 SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS INFORMATION/QUESTIONS • The Board received notice from PERAC that the amount to be appropriated for the Reading Retirement System for FY24 is $9,055,509. • A transfer amount of $9,841.32 dated 11/29/22 was received from the Somerville Retirement System for Benjamin Bloomenthal. The Somerville Retirement System will accept liability for l l months. • Frieda Roberts, Survivor Option D Beneficiary of Arthur Roberts, passed away on November 20, 2022. Benefits ceased upon her death. • Henry Rich, who worked for the Police Dept. and retired on November 27, 1976, passed away on November 26, 2022. He chose Option B at his retirement but there are no remaining funds in his annuity. He retired on an accidental disability retirement from left hand sepsis due to a human bite wound. The cause of death was not related to the disability from which Henry retired, therefore, his spouse, Carol Rich, is not entitled to an accidental death benefit. His spouse is eligible for a Section 101 allowance of $9,000 per year because Henry retired prior to November 7, 1996. • The Election Notice for the first member of the Reading Retirement Board was mailed to all active and in -active members, as well as all retirees on Thursday, December 15, 2022. Nomination papers will be available in the Retirement office and are due back to the office no later than January 30, 2023. • As of December 14, 2022, the balance in the MMDT account is $3,508,173.24. • Copies of the following Reading Retirement Board reports were emailed for review: The PRff fund's monthly statement & fund performance for period ending Nov 30, 2022 General Ledger Trial Balance as of Nov 30, 2022 Cash Receipts, Adjustments, and Disbursements as of Nov 30, 2022 Bank Reconciliation for the month ending Nov 30, 2022 Reading Coop Bank Statement for the month ending Nov 30, 2022 MMDT Bank Statement for the month ending Nov 30, 2022 Bank Reconciliation for wire amount with current balance of bank accounts • The next special board meeting is scheduled for Thursday January 19, 2023 at 9:30 AM, in the Conference Room at 2 Haven Street, Unit 307, Reading, MA. • The next regular board meeting is scheduled for Wednesday January 25, 2023 at 9:30 AM, in the Conference Room at 2 Haven Street, Unit 307, Reading, MA. i MEMORANDUMS & LETTERS RECEIVED PERAC Memo #29-2022 — 5% Local COLA Option PERAC Memo #30/2022 - Proposed Regulations Regarding Compliance with the IRS Code PERAC Memo #31/2022 — 840 CMR 10:10(3) & 10: 15(1)(c) Annual Review of Medical Testing Fee PERAC Memo #32/2022 - Tobacco Company List PERAC Pension News No. 61 OLD BUSINESS • Continued Retirement office topics including, but not limited to, the following: Carol Roberts updated the Board regarding the Employee Handbook/Job Descriptions and her discussions with Labor Counsel. Carol gave copies of the edited Employee Handbook and the job descriptions to the Board members for their review. There is a lot of information supplied by Labor Counsel, so the Board agreed to hold a special meeting scheduled for Thursday, January 19, 2023, in order to afford the Board ample time to review and comment. Carol Roberts will request that Arty. Wachterhauser (Labor Counsel) join a conference call at the January 19, 2023 special session. • The retirement calculation for Firefighter Paul Roy has been sent to PERAC for approval. • The Retirement office has received 2 of the 3 Medical Panel Narratives for Firefighter Bruce Ayer. The office will forward these to the Board upon receipt of all 3, as well as Atty. Sacco for an opinion letter. The Board will be required to vote for approval or denial at the next Board meeting. The Chairman has authorized the Retirement Administrator to issue a one-time payment to Firefighter Paul Roy ofhis annuity from the date of retirement to December 31, 2022, due to the delay in PERAC's approval process. • The Board needs to discuss and give direction to the administrator for future payments to employees that are in between being put on disability and receiving their first payment. The Board members agree that delaying Firefighter Roy's retirement allowance, due to PERAC's delay in their approval process, is unacceptable. John Halsey asked if it is possible for the Board to approve up to $10,000 in advance payments to be withheld from his ultimate check in order to pay Firefighter Roy a lump sum payment before Christmas. The administrator will call John Parsons, Executive Director of PERAC to inquire if this is possible. 2032 Carol Roberts stated that the Board has done as much as they can right now but it's really important to have a history of this. She asked if it were possible for the Board, as a whole, to write a letter to PERAC expressing their disappointment with this issue. The letter should suggest to PERAC that they come up with steps the Board could take should this happen again in the future. OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING ADJOURNMENT • SHARON ANGSTROM moved to adjourn this open session at 12:20 PM: SECONDED BY: ROBERT BECK VOTED: (4-0-0) UNANIMOUS Chairman David A. Gentile, 1" elected (ABSENT) 1364~ n Sharon M. Angstrom, Ex Otiic46 � � CG4XC B'NC( - Carol B. Roberts, I" appointed