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Home My WebLink About2010-01-27 Retirement Board Minutes-1 15 0 lYIINUTES OF THE READING RETIREMENT BOARD MEETING Wednesday, January 27, 2010 The Reading Retirement Board held a regular session meeting on January 27, 2010, in The Lower Level Conference Room, Town Hall, Reading, Massachusetts. The meeting was called to order at 6:00 P.M. by Chairman Joseph Veno in the presence of members Richard Foley, Gail LaPointe, Francis Driscoll, Daniel Seferian, and Board Administrator, Colleen Loughlin. MINUTES • Regular session minutes for the November 24, 2009 meeting were signed by all board members. EXECUTIVE SESSION (6:05 P.M.) • FRANCIS DRISCOLL moved to enter into executive session for the purpose of discussing the medical panel clarification reports of Robert Toussaint, to accept Attorney Nicholas Poser into the executive session, and to return to open session to continue the meeting. SECONDED BY: RICHARD FOLEY ROLL CALL VOTE: DANIEL SEFERIAN AYE RICHARD FOLEY AYE GAIL LAPOINTE AYE. FRANCIS DRISCOLL AYE JOSEPH VENO AYE OPEN SESSION (6:50 P.M.) • DANIEL SEFERIAN moved to deny the accidental disability application of Robert Toussaint. SECONDED BY: RICHARD FOLEY VOTED: (4-1-0) • FRANCIS DRISCOLL moved to accept the December 16, 2009 regular session minutes as written. SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • DANIEL SEFERIAN moved to approve the following final calculation approved by PERAC: Linda Polcari Firefighter 11/26/09 7 years, 10 mths Option B (Accidental Disability) Annuity: $ 2,769.36 Pension: $39,960.84 Yearly: $42,730.20 Monthly: $ 3,560.85 SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS • FRANCIS DRISCOLL moved to approve the following refund of accumulated deductions: Nicholas Metcalf Resigned 12/21/09 6 years, 9 months (Fire) Total deductions & interest $11,332.42 Less 50% interest $ 26.87 Less 20% federal tax $ 2,261.11 Net refund (Cash) $ 9,044.44 SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS • FRANCIS DRISCOLL moved to approve request from eligible member to purchase prior non-membership service from Reading for creditable service: Kathleen Miksis Reading 8/3/94-9/13/09 10 yrs, 8 mths (pro-rated) The total purchase amount is $35,607.69. Kathy will begin payroll deductions with the February 5, 2010 pay period. SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS • DANIEL SEFERIAN moved to send letter to Pension Technology Group allowing limited access to the Town j of Reading Human Resource Personnel for health & life insurance purposes only: i SECONDED BY: RICHARD FO.LEY VOTED: (4-1-0) APPROVAL OF VOUCHERS • FRANCIS DRISCOLL moved to approve the following vouchers: 2010 Voucher # 01 Jan Retirement Allowances'- $453,562.82 Net Retiree Payroll Town of Reading Treasurer $ 43,388.91 Health Insurance Deductions Reading Credit Union $ 28,974.00 Credit Union Deductions Commonwealth of Mass. $ 623.12 RHA Health Ins. Deductions Internal Revenue Service $ 42,498.66 Federal Tax Deductions Commonwealth of Mass. $ 1,867.47 State Tax Deductions 02 Town of Reading Treasurer $ 3,624.75 January's Administrator's Salary 03 Town of Reading $ 163.34 Postage Due Town 04 Pension Technology Group $ 14,500.00 Annual Support & Hosting Fee 05 MACRS $ 400.00 Annual Dues for 2010 06 Belmont, MA Contrib Ret Bd $ 1,890.39 Section 3(8)(c) Reimbursement 07 Andover Retirement Board $ 1,269.81 Section 3(8)(c) Reimbursement 08 Malden Retirement Board $ 2,431.64_ Section 3(8)(c) Reimbursement 09 Bill's Lock & Key $ 75.00 Admin Expense - Lock(file cabinet) 10 BACTES $ 39.38 Admin Exp-Fee for Medical Records 11 Medical Record Associates, Inc. $ 32.57 Admin Exp - Fee for Medical Records 12 Winchester Retirement Board $ 23,229.13 Section 3(8)(c) Reimbursement 13 Lawrence Retirement Board $ 3,177.58 Section 3(8)(c) Reimbursement 14 Worcester Retirement Board $ 3,270.86 Section 3(8)(c) Reimbursement 15 Peabody Retirement Board $ 2,124.22 Section 3(8)(c) Reimbursement SECONDED BY VOTED: 16 The Segal Company 17 Nicholas Metcalf 18 Internal Revenue Service DANIEL SEFERIAN (5-0-0) UNANIMOUS INFORMATION/QUESTIONS/OTHER ITEMS $ 16,500.00 Admin Exp-Actuarial & Consult. Serv $ 9,044.44 Refund to Member $ 2,261.11 Refund to Member 20% Fed Tax Metcalf • Discussed and reviewed letter to allow Human Resource Department "Read Only" access to PTG regarding health & life insurance records. Chairman signed letter to send to Pension Technology Group. • Discussed partial payments to deceased retirees. Board agreed that if the board is notified of a retirees' death before payroll is run, then the pro-rated final payment should not be made payable to the retiree. The board will follow the same guidelines as the town and request a beneficiary or name of person handling estate. That person would fill, out a W-9 and payment would be issued. • Discussed issue with regards to retirees with excess earnings - health insurance. Donald Stead has made his final payment of his excess earnings from 2001-2004. He now has to make payments for excess earnings for 2005-2008. Since the Board made a supplementary regulation last year that was approved by PERAC that requires any accidental disability retiree that has excess earnings that payments must be made in full by 1 calendar year, would this apply to Donald Stead. The board agreed since he is in the process of appealing this case, to just pay him enough to cover his health insurance and leave the balance in a suspended account. e Paul Todisco, Senior Client Services Officer from the PRIM Board, PRIT, would like to attend the March 24, 2010 board meeting to discuss the performance of the funds in PRIT. • A COLA reimbursement of $110,900.74 from the State for the period 7/1/09-12/31/09 was received on 12/24/09. • Elvira Geder, who worked for the School Dept and retired on 6/21/91, passed away on 1/8/10. She chose Option A at her retirement. • Lillian Hitchcock, Option D beneficiary of William, died October 25, 2009. • Gloria Mullen, Option D beneficiary of Richard Mullen, died April 6, 2009. The Board had not received her affidavit so the administrator contacted a family member and was told that Gloria Mullen died in April 2009. Her son, James Mullen, had been cashing her checks. The treasurer contacted the police department and arrangements have been made that James Mullen will be making 3 installments to reimburse the Reading Retirement Board. If he fails to meet this obligation, then the police department will be pressing charges. • The Board received notice from PERAC that.the amount to be appropriated for the Reading Retirement System for FYI I is $4,229,889. • The Board received notice from PERAC that the revised funding schedule recently adopted has been approved. The schedule assumes payments are made July 1 and January 1 each fiscal year. On December 18, 2009 PERAC notified this Board that Bruce Donaghey was evaluated for possible return to service and PERAC's internal Nurse Case,Manager determined that he is unable to perform the essential duties of his job. • On January 8, 2010 PERAC notified this Board that Arthur King was evaluated for possible return to service and PERAC's internal Nurse Case Manager determined that he is unable to perform the essential duties of his job. 11.5 .E • Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & fund performance for period ending Nov 30, 2009 & Dec 31, 2009. General Ledger Trial Balance as of November 30, 2009 & December 31, 2009. Bank Reconciliation for the month ending November 30, 2009. The PERAC Financial Bulletin, Financial Market Review, Fourth Quarter 2009. • The next board meeting will be February 24, 2010 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #1/2010 - 2010 Limits under Chapter 46 of the Acts of 2002 - The regulations regarding Section 401(a)(17) (compensation limit) and Section 415 (benefit limit) of the Internal Revenue Code can vary under individual circumstances. The compensation limit for 2010 is generally $245,000 ($360,000 if a current member became a member prior to 12/31/95). The general benefit for 2010 is $195,000 per year for a member retiring at age 65 although this limit is generally reduced for retirement prior to age 62. PERAC Memo #2/2010 - COLA Notice - The Social Security Administration has announced that the latest cost' of living adjustment is 0.0% but upon proper notice to the legislative body a Retirement Board may. elect to increase this percentage up to 3%o at a duly called meeting. PERAC Memo #3/2010 - Reimbursing Employers for Costs Incurred Due to Board Members' Service on Retirement Boards. PERAC Memo #4/2010 - Actuarial Data- Requesting that Boards submit data for active members, retirees/survivors and disability retirees as of December 31, 2009. Data needs to be submitted by March 31, 2010. PERAC Memo #5/2010 - Investment Manager List PERAC Memo #6/2010 - Tobacco Company List PERAC Memo #7/2010 - Calendar Year 2009 Annual Statements - Calendar Year 2009 Annual Statements are due by May 1, 2010 to PERAC. PERAC auditors will be available- for assistance if needed. PERAC Memo #8/2010 - Buyback and Make-up Repayment Worksheets Using Buyback Interest PERAC Memo #9/2010 - 2010 Interest Rate set at 0.3 % PERAC Memo #10/2010 - The "Under $5000 Rule" Alliant Insurance Services -National Fiduciary Liability Insurance Program ADJOLTRNMTNT • DANIEL SEFERIAN moved to adjourn this open session at 7:49 P.M. SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS 11-54 C rm Joseph R. Veno, 2n elected Gail L inte, Ex Officio Richard P. Foley, I" appointed Francis P. Drisco 1, lst elected Vice Chairman, Daniel B. ferian, 2n appointed