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Home My WebLink About2023-11-27 Retirement Board Minutesf RFgO Town of Reading 0e��. �- Meeting Minutes Board - Committee - Commission - Council Contributory Retirement Board Date: 2023-11-27 Building: Reading Retirement Administration Address: 2 Haven Street Unit 307 Purpose: General Business Attendees: Members - Present: David Gentile Carol Roberts Robert Beck Members - Not Present: Sharon Angstrom John Halsey Others Present: u��Vkl r RK Op PYi 1121 Time: 10:00 AM Location: Conference Room Session: Open Session Version: Final Colleen Loughlin - Board Administrator Elaine Kelly - Asst Board Administrator Anthony Tranghese - Fiducient Advisors via Zoom Richard Carey - Fiducient Advisros via Zoom Minutes Respectfully Submitted By: Elaine Kelly Topics of Discussion: Page I I 2106 MINUTES OF THE READING RETIREMENT BOARD MEETING Monday November 27, 2023 The Reading Retirement Board held a regular session meeting on November 27, 2023 in The Conference Room at 2 Haven Street, Unit 307, Reading, Massachusetts The meeting was called to order at 10:00 AM by Chairman David Gentile with board members Carol Roberts, Robert Beck, Administrator Colleen Loughlin, Assistant Administrator Elaine Kelly and both Anthony Tranghese and Richard Carey from Fiducient Advisors, who participated remotely via ZOOM. Sharon Angstrom and John Halsey were unable to attend. Due to technical difficulties, the meeting was delayed to start by one half hour. SPECIAL ITEM Anthony Tranghese and Richard Carey from Fiducient Advisors participated remotely via Zoom to give a brief presentation to the Board. Fiducient started with a review of capital markets and the System's portfolio performance through October 2023. As of month-end the portfolio market value stood at approximately $173.7 million. Over the month of October, the portfolio achieved a -1.6% return. 94.6% of the portfolio is allocated in the PRIT Core Fund. The remaining 5.4% is invested in various vintage years of the PRIT private equity program, dating back to 2019. As in yews' past, Fiducient also provided an asset allocation comparison of Reading's portfolio versus the PRIT Core Fund. A large majority of the portfolio currently aligns with the PRIT Core Fund but, due to Reading's investments in the PRIT vintage year private equity program, the System's portfolio is overallocated to private equity (22.3% as of 9/30/23) in comparison with the PRIT Core Fund (18.0% as if 9/30/23). Fiducient reminded the Board of their decision several years ago to begin the process of adding flexibility to the asset allocation. The first step at that time was to start to build a dedicated private equity allocation outside of the PRIT Core Fund, which over the past four years has grown to approximately 5.4% of the portfolio. At this meeting, Fiducient recommended that the Board take the next step in this process, which entails beginning to reallocate some assets from the PRIT Core Fund to various PRIT "sleeves" which invest across different dedicated asset classes. The purpose of this recommended reallocation is to realign Reading's portfolio back in-line with the PRIT Core Fund, reducing the overall private equity allocation to approximately 18%. This reallocation amounts to moving approximately 20% of the Reading portfolio or $35 million from the PRIT Core Fund to the various PRIT sleeves (Core Fixed Income, Value Add Fixed Income, Domestic Equity, International Developed Equity, Emerging Markets Equity, Hedge Funds, and Real Estate). The Board unanimously voted to approved Fiducient's recommendation to reallocate the portfolio. I Fiducient also recommended updating the asset allocation table of the System's Investment Policy Statement to align with the approved reallocation changes. The Board unanimously voted to adopt — j Fiducient's recommended changes to the asset allocation table of the IPS. 2107'-` Lastly, Fiducient recommended a continuation of Reading's annual commitments to the PRIT private equity program. Fiducient recommended committing $4 million to vintage year 2024 of the program. The Board unanimously voted to commit $4 million to the PRIT private equity program's 2024 vintage year fund. • CAROL ROBERTS moved to approve the proposed allocation as described on Slide 4 and to implement via the trades as necessary. (as reported under SPECIAL ITEM) SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS • CAROL ROBERTS moved to approve the participation in the Private Equity Vintage Year (PEVY) 2024 program and a $4M distribution to the PEV Y 2024 Fund. SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS • CAROL ROBERTS moved to approve the Investment Policy Statement (IPS) as written on pages 5 tbm 10 in the handout. (as reported under SPECIAL ITEM) SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS NOTE: Anthony Tranghese and Richard Carey left this meeting at 10:41AM. 2108 MINUTES • Minutes from the September 25, 2023 regular session were signed by all members. • Minutes from the September 25, 2023 executive session were signed by all board members, except John Halsey who was unable to attend. • CAROL ROBERTS moved to approve the minutes from the October 25, 2023 regular session. SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS APPROVAL OF NEW MEMBERS RETIREMENTS, TRANSFERS, AND REFUNDS • CAROL ROBERTS moved to approve the following new members: Andrew Ibarra Lineworker Date of hire — 11/06/23 9%+2% Gr. 4 (RMLD) Date of membership —10/11 /22 Transfer from Peabody John Blanchette Laborer Date of hire —11/06/23 9%+2% Gr. 1 (DPW -Water) Date of membership — 11/06/23 Kevin Connors Senior Technician Date of hire — 11/06/23 9%+2% Or. 1 (Technology) Date of membership —11/06/23 Mark McCarthy Custodian Date of hire —11/06/23 9%+2% Or. 1 (School) Date of membership —11/06/23 Sam Kelso Library II Date of hire —11/13/23 9%+2% Or. I (Library) Date of membership —11/13/23 Eric Redard Laborer Date of hire— 11/13/23 9%+2% Or. 1 (DPW -Highway) Date of membership — 11/13/23 Gregory Johnson Network Support Date ofhire — 11/13/23 9%+2% Gr. 1 (RMLD) Specialist Date ofinembership-11/13/23 1009 .1 Joshua Livingston (School) Douglas Coum (Fire) Kenneth Hulings (DPW -Water) SECONDED BY: Custodian Date of hire —11/13/23 9%+2% Date of membership — 11/13/23 Firefighter/Paramedic Date of hire — 11/13/23 9%+2% Date of membership —11 /13/23 Laborer Date of hire —11/20/23 9%+2% Date of membership —11 /20/23 ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS • CAROL ROBERTS moved to approve the transfer of funds to other system: Joseph Bialecki to Danvers Retirement System 4 years, 1 month SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS • CAROL ROBERTS moved to approve the following refund of accumulated deductions: Brian Hatch Resigned 7/122 Refund — Cash 1 year, 5 months (RMLD) Jesse Malonson Terminated 7/7/23 Refund - Cash (no additional liability) (School) Renee Smith Resigned 629/21 Refund — Rollover 6 years, 10 months (Library) Gr. 1 Or. 4 Gr. 1 211 0 SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS • CAROL ROBERTS moved to approve the November 2023 wire transfer from PRIM to MMDT in the amount of $750,000.00 SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS • CAROL ROBERTS moved to approve the November 2023 wire transfer from MMDT to Reading Co-op in the amount of $1,221,193.14 SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0)UNANIMOUS • CAROL ROBERTS moved to approve to submit the Wilson case to DALA on a motion for judgement on the pleadings, citing Gouck SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS APPROVAL OF INVOICES TO BE PAID • CAROL ROBERTS moved to approve the following warrant #AP112023 totaling $1,394,882.46. SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS INFORMATI ON/OUESTIONS • The Board has received a request from Vanessa Silva, President of the Reading Pameducators Association, for the Board to consider changing their supplemental regulation regarding membership that would allow the paraeducators to become members of the Reading Retirement System. Overall, this could potentially impact not only the Paraeducators but other similar town employees, as well as the funding schedule. This will be put on the Board meeting agenda for a date to be determined. This is in an effort to allow the Board to gather more information and data on an actuarial basis to see how this would impact the system. The Administrator will contact the actuary, Linda Bournival to inquire as to what information she will need from us in order to compile the necessary numbers to present to the Board for discussion. The Administrator will be in touch with Vanessa Silva as soon as the Board has gathered more information from the actuary. • A transfer amount of $117,958.28 dated 11/16/23 was received from the Andover Retirement System for Albert Pless, Jr. The total service transferred was 19 years and 5 months. Andover Retirement will accept liability for 1 year and 5 months of creditable service. • As of November 21, 2023, the balance in the MMDT account is $3,233,736.41. • Copies of the following Reading Retirement Board reports were emailed for review: The PRIT fund's monthly statement & fund performance for period ending October 31, 2023 General Ledger Trial Balance as of October 31, 2023 Cash Receipts, Adjustments, and Disbursements as of October 31, 2023 Bank Reconciliation for the month ending October 31, 2023 Reading Co-op Bank Statement for the month ending October 31, 2023 MMDT Bank Statement for the month ending October 31, 2023 Bank Reconciliation for wire amount with current balance of bank accounts • The next regular board meeting is scheduled for Wednesday December 20, 2023 at 9:30 AM, in the 2112 Conference Room at 2 Haven Street, Unit 307, Reading, MA. Laura Strickland from PRIM will be joining this Board meeting to give a brief update to the Board. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #23/2023 — Paid Family and Medical Leave (" PFML'� & Supplemental Payments PERAC Memo #24x/2023 — Outsourced Chief Investment Officer (OCIO) Policy PERAC Memo #25/2023 — Cybersecurity Training PERAC Memo #26/2023 — Pension Fraud Prevention Campaign Attorney Michael Sacco email regarding S. Wilson and the Gouck case (Exhibit B) Attorney Michael Sacco — Memorandum — Recent Appeals Court Decision (Exhibit C) • Continued Retirement office topics, including but not limited to general updates: Executive Minutes — the Assistant Administrator did a survey of other municipalities to ask what their standard practice is for releasing executive minutes. Of 13 asked, 6 responded. These communities do not have a standard practice. PERAC's response was that they should be reviewed regularly to decide whether they need to be kept private or if the purpose of the meeting has concluded. Once concluded and there is no reason to keep the minutes secret, they should be released at the next general board meeting. Executive minutes that pertain to Accidental Disabilities can be released as long as the personal information is redacted. This will be an agenda item during the 1" quarter of 2024. PERAC Board/Administrator's Training in Danvers on 11/14/23 — The Assistant Administrator gave a brief overview of the Training and supplied a summary handout. • The Board created a 2024 Board meeting schedule. The administrator will send these dates to those Board members that are not present. MISCELLANEOUS • Selection of the 50 Member (appointed by the Retirement Board) — John Halsey's term expires 03/31/24 — will be posting the position in the newspaper, PERAC's website and the Reading Retirement System website in December. • Appointed Member (appointed by the Select Board) — Does the Retirement Board have any recommendations for the Select Board? 2.1 1 3 ='- There has been some interest from two parties. The Administrator will send a letter of interest on behalf of the Board with the names of these 2 prospective candidates to the Select Board. OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING The Board reserves the right to consider items on the agenda out of order. The listing of items is those reasonably anticipated by the Chair to be discussed, received at least forty-eight (48) hours prior to the meeting. Not all items listed may in fact be discussed and other items not listed may also be brought up for discussion to the extent permitted by law. Items identified for discussion in Executive Session may be conducted in open session, in addition to, or in lieu of discussion in Executive Session. ADJOURNMENT • CAROL ROBERTS moved to adjourn this open session at 11:45 AM: SECONDED BY: ROBERT BECK ROLL CALL VOTE: ROBERT BECK AYE CAROL ROBERTS AYE DAVID GENTILE AYE VOTED: (3-0-0) UNANIMOUS C airman David A.Gentile, 1�' elected Sharon M. Angstrom, Ex Officio (ABSENT) No l.O.t cdA k Aceto Mix Carol B. Roberts, 1" appointed //-;& �IA� Robert L. Beck, 2nd elected John R. Halsey, 2"d appointed (ABSENT)