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Home My WebLink About2009-04-22 Retirement Board MinutesMINUTES OF THE READING RETIREMENT BOARD MEETINbC E J 'j - p Wednesday, April 22, 2009 T O IN CLERK READING, ;1~SS. The Reading Retirement Board held a regular session meeting on April 22, 2009, in The Lower Level Conference Room, Town Hall, Reading, Massachusetts. 100q JUL IS P 3-' 2`8 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 February 25, 2009 meeting were signed by all board members. • FRANCIS DRISCOLL moved to accept the March 25, 2009 regular session minutes as written. SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS APPROVAL OF NEW MEMBERS RETIREMENTS TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following new members: Steven Binari Fire Date of hire & membership - 3/26/09 (Firefighter) Robert Loring Fire Date of hire - 3/30/09 (Firefighter/Paramedic) Funds to be transferred from Amesbury Johanna Roman Finance/Technology Date of hire - 4/6/09 (Technician) Funds to be transferred from Arlington Jeffrey Zager DPW Date of hire - 4/13/09 (Public Works Director) Funds to be transferred from Gloucester Jared Carpenter RMLD Date of hire & membership - 4/1/09 (Energy Efficiency Engineer) SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS 9%+2% 9%+2% 9%+2% 7%+2% 9%+2% • DANIEL SEFERIAN moved to renew the contract for Segal Company for actuarial services. The quote submitted by Segal is $16,500 fee for the July 1, 2009 actuarial valuation and $3,000 fee for the July 1, 2010 update. SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS APPROVAL OF VOUCHERS 1 ~11~ • FRANCIS DRISCOLL moved to approve the following vouchers: - ' 2009 Voucher # 38 April Retirement Allowances $444,003.93 Net Retiree Payroll Town of Reading Treasurer $ 47,608.28 Health Insurance Deductions Reading Credit Union $ 24,587.00 Credit Union Deductions Commonwealth of Mass. $ 615.34 RHA Health Ins. Deductions Internal Revenue Service $ 37,547.33 Federal Tax Deductions Commonwealth of Mass. $ 1,700.64 State Tax Deductions 39 Town of Reading Treasurer $ 3,484.37 April Administrator's Salary 40 Town of Reading $ 147.15 Postage due to Town 41 West Payment Center $ 168.00 Admin. Exp- MA Gen Laws Inserts 42 W.B. Mason Co., Inc. $ 5.05 Administrative Expense-envelopes SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS INFORMATIONWESTIONS/OTHER ITEMS • Discussed situation when a member is in the Reading Retirement System, but is also working part-time for another department. A full time dispatcher in the Reading Retirement System has taken a position in Elder Services as a part-time substitute van driver. Retirement deductions are being withheld from his salary in his part-time position. There is a firefighter in the Reading Retirement System that is working part-time as a Fire Alarm Lineman. There are no retirement deductions taken from his salary as a part-time employee. The board agreed to request an opinion from PERAC. • Discussed Robert Toussaint's application for disability. The board administrator did confirm with PERAC and Nicholas Poser that based on the judge's decision that Robert Toussaint was entitled to a medical panel, an application for a medical panel will be submitted to PERAC even though the board has not received updated medical information. Based on PERAC's suggestion, the board administrator will send a letter to Robert Toussaint's lawyer asking if the board has all the current medical information. • The board reviewed the job description for the new position at RMLD, Energy Efficiency Engineer, and agreed that this position would fall under group I. An updated list of Group/Job Titles will be sent to RMLD. • Received letter from ICE Miller, PERAC's Legal Counsel, with a bound copy of the IRS Application for Determination Letter that was filed with the Internal Revenue Service on December 31, 2008. • A transfer amount of $7,345.43 dated March 30, 2009 was received from Amesbury Retirement Board for Nicholas Metcalf, Firefighter. Amesbury will accept liability for 5 years and 11 months of creditable service for the period of 7/1/00-12/1/04 & 9/14/07-4/6/09. • A transfer amount of $1,794.78 dated April 8, 2009 was received from Amesbury Retirement Board for Robert Loring, Firefighter. Amesbury will accept liability for 4 months of creditable service for the period of 10/10/08-3/6/09. • Checks were received from the following Retirement Boards for full payment of its Section 3(8)(c) reimbursement: Natick Retirement Board • Ronald Michelini, who worked for Fire Dept. and retired on July 6, 1989, passed away on 3/23/09. He chose Option B at his retirement but there are no funds remaining. • Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & fund performance for period ending March 31, 2009. General Ledger Trial Balance as of January 1, 2009 - March 31, 2009. Bank Reconciliation for the month ending January 1, 2009 - March 31, 2009. The PERAC Financial Bulletin, Financial Market Review, First Quarter 2009. • The next board meetings will be May 27, and June 24, 2009 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #16/2009 - Investment Manager List PERAC Memo #17/2009 - Tobacco Company List Received letter from PERAC addressing the question of whether a member of the Reading Retirement System can receive credit for the proportion of creditable service such member purchased when the member failed to complete the entire buyback prior to retirement (letter dated 2/27/09). PERAC responded that according to G.L. c. 32, § 3(6)(d), the member in question is entitled to a prorated creditable service representative of the payments the member has made even though such member failed to complete the entire buyback prior to the member's retirement. Nothing in the statue requires the Board to refund amounts paid by the member unless the member requests that such amounts be refunded to him or her. Ralph White - MACRS - Re: Pension Reform: Right of current members - Since the issue. of Pension Reform is still a hot issue, a question has come up as to the legality of substantive benefit changes that impact current public employees, who are members of the retirement System. PERAC Memo #18/2009 - Impact of Furloughs on Creditable Service and Regular Compensation - G.L. c. 32, § 4(1)(c) allows the board to grant a member up to 1 month of creditable service for a period of unpaid leave. When a member takes a furlough and receives creditable service for that period, the member will be entitled to have the regular compensation that they would have received but for the leave included in their three year average compensation. G.L. c. 32, § 5(3)(b) allows the rate of regular compensation in effect immediately preceding the period of leave of absence to be used as the rate for the period of absence. The member does not have to make retirement contributions for this period in order to receive the benefit. PERAC Memo #19/2009 - Federal Stimulus Package and New Withholding Tables Effective April 1, 2009 - the new federal stimulus package required new tax withholding tables, which may reduce the amount of income tax withheld from retiree's retirement allowance. The new tables reflect the Making Work Pay credit for people with "earned income." A retirement allowance is not "earned income." Retirees who have no earned income, may have under-withholding, while working retirees may not. Memo from MACRS - There are 3 retirement boards, Northampton, Malden, and North Adams who unofficially have the best investment returns for 2008. Russ deBurlo of the deBurlo Group is the fund manager of these boards. OLD & NEW BUSINESS 112 ADJOURNMENT • FRANCIS DRISCOLL moved to adjourn this open session at 6:35 P.M. SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS ~ Ke- V ~ Joseph R.-Veno, 2"d elected Gail Pointe, Ex Officio Richard P. Foley, I" appoint Francis P. Driscoll, I" elected Vice Chairman, Daniel B. Seferian, 2" appointed