HomeMy WebLinkAbout2009-12-16 Retirement Board Minutes1147
MINUTES OF THE READING RETIREMENT BOAROI(k~~
_ Wednesday, December 16, 2009 (3 C '
F~~AC~IGMt'~~5.
The Reading Retirement Board held a regular session meeting on December 16, 2009, in Th Lower Level
Conference Room, Town Hall, Reading, Massachusetts. FEB 25 F ' .
The meeting was called to order at 6:01 P.M. by Chairman Joseph Veno in the presence of members Richard
Foley, Gail LaPointe, Francis Driscoll, Daniel Seferian, and Board Administrator, Colleen Loughlin. Kathy Riley
from Segal Company attended to discuss the 2009 actuarial valuation. James Rich, DPW employee, attended to
discuss the buyback of his non-membership service.
SPECIAL ITEM
• James Rich, a DPW employee, attended this meeting to discuss his non-membership service as a seasonal
employee, prior to becoming a full time employee. The member would like to purchase 1 year of service but
the Board explained that since he was contributing to social security he was not eligible to buyback that time
based on the board's regulations.
• Kathy Riley from The Segal Company gave a report on the results of the July 1, 2009 actuarial valuation.
The following actuarial assumptions were changed with this valuation:
1. The mortality table for healthy employees was changed from the 1994 Group Annuity Mortality Table to
the RP-2000 Employees Mortality Table for pre-retirement mortality and the RP-2000 Healthy Annuitant
Mortality Table for post-retirement mortality:
2. The mortality table for disabled participants was changed from the PBGC Mortality Table for Disabled
Lives Receiving Social Security Benefits to the RP-2000 Healthy Annuitant Mortality Table set forward 5
years.
3. The salary increase assumption was changed from 5.0% per year to increases based on years of service
and Group:
4. Rates of disability were changed based on age and group.
5. Rates of withdrawal were changed based on years of service and group.
The unfunded liability has increased from $27.2 million as of July 1, 2007 to $38.8 million as of July 1, 2009.
The increase is primarily due to investment performance. Because the fiscal 2010 appropriation has been set
to the previously budgeted amount of $3,686,795 based on the July 1, 2007 actuarial valuation, the results of
this valuation will first be reflected in the fiscal 2011 appropriation of $4,229,889. The current funding
schedule amortizes the unfunded liability by June 30, 2028 with amortization payments that increase 4.50%
per year.
RICHARD FOLEY moved to accept the Segal actuarial report dated July 1, 2009.
SECONDED BY: FRANCIS DRISCOLL
VOTED: (5-0-0) UNANIMOUS
MINUTES
• Executive session minutes for the September 23, 2009 meeting were signed by all board members.
• Regular session minutes for the October 28, 2009 meeting were signed by all board members.
• RICHARD FOLEY moved to accept the November 24, 2009 regular session minutes as amended.
SECONDED BY: FRANCIS DRISOLL
VOTED: (4-0-1) ABSTAINED: DANIEL SEFERIAN
114"9
• The next board meeting will be January 27, 2010 at 6:00 pm in the Lower Level Conference Room.
MEMORANDUMS & LETTERS RECEIVED
PERAC Memo #45/2009 - Mandatory Ethics Training - The recently enacted Ethics Reform (Chapter 28 of the
Acts of 2009) created mandatory education and training requirements for all public employees.
PERAC Memo #46/2009 - Age 70-1/2 Distribution - Section 15 of Chapter 21 of the Acts of 2009 brings the
Massachusetts Retirement Systems into compliance with the federal requirement that persons who attain age 70-
1/2, who are not receiving a retirement allowance and who are not employed must begin taking a distribution
from the System by April 1 of the year following the year they attain age 70-1/2.
PERAC Memo #47/2009 - Amendment to Chapter 21 of the Acts of 2009 Accidental Disability Retirement
Allowance Calculation - Chapter 21 of the Acts of 2009 changed the amount of regular compensation for
purposes of calculating an accidental disability retirement allowance. Section 19 of Chapter 166 of the Acts of
2009 has again changed the regular compensation to be used in the calculation. Section 45 of Chapter 166 of the
Acts of 2009 has made this change effective on July 1, 2009.
PERAC Memo #48/2009 - Proposed Regulations Defining Regular Compensation - Hearings on this regulation
will be conducted and public comments will be accepted through January 19, 2010, for discussion at the
Commission meeting scheduled for January 26, 2010.
PERAC Memo #49/2009 - 2009 Disability Retiree Data
ADJOURNMENT
• RICHARD FOLEY moved to adjourn this open session at 7.15 P.M.
SECONDED BY
VOTED:
FRANCIS DRISCOLL
(5-0-0) UNANIM US
/ i an, Joseph R. V` en~o, 2nd elected
Francis P. Driscoll, I" elected
ice Chairman, Daniel Seferian, 2 na appointed