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Home My WebLink About2009-02-25 Retirement Board Minutes1110 MINUTES OF THE READING RETIREMENT BO. Wednesday, February 25, 200 ING 9TOW CLERK The Reading Retirement Board held a regular session meeting on Fe~ruary 25, 2009, in The Lower Level Conference Room, Town Hall, Reading, Massachusetts. 2091 APR 2M A 107 35 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. Paul Todisco attended this meeting to discuss the performance of the funds in PRIT. MINUTES J 3 • Regular session minutes for the December 17, 2008 meeting were signed by all board members. • FRANCIS DRISCOLL moved to accept the January 28, 2009 regular session minutes as written. SECONDED BY: RICHARD FOLEY VOTED: (4-0-1) ABSTAINED: DANIEL SEFERIAN APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following refund of accumulated deductions: Barbara Rose Resigned 11/28/08 9 mths (DPW-Recreation) Total deductions & interest $ 2,012.48 Less 100% interest $ 1.68 Less 20% federal tax $ 402.16 Net refund (Cash) $ 1,608.64 SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS • FRANK DRISCOLL moved to approve Daniel Seferian as appointed fifth Board Member. His term will run from 4/1/09 to 3/31/12. SECONDED BY: RICHARD FOLEY VOTED: (4-0-1) ABSTAINED: DANIEL SEFERIAN • FRANK DRISCOLL moved to approve board administrator to attend the MACRS 2009 Spring Conference being held June 7-June 10, 2009 in Hyannis, MA. SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS -11~Y • FRANK DRISCOLL moved to approve that the board administrator is authorized to spend up to $50.00 for providing refreshments when hosting the NorthEast Regional Secretaries Meeting. SECONDED BY: DANIEL SEFERIAN VOTED: (5-0-0) UNANIMOUS APPROVAL OF VOUCHERS • FRANCIS DRISCOLL moved to approve the following vouchers: 2009 Voucher # 15 Feb. Retirement Allowances $440,448.99 Town of Reading Treasurer $ 48,227.63 Reading Credit Union $ 24,517.00 Commonwealth of Mass. $ 615.34 Internal. Revenue Service $ 44,827.16 Commonwealth of Mass. $ 1,793.73 16 Town of Reading Treasurer $ 3,484.36 17 Town of Reading $ 301.41 18 Barbara Rose $ 1,608.64 19 Internal Revenue Service $ 402.16 20 The Graphics Shop, Inc. $ 50.94 21 Boston Retirement System $ 6,990.09 22 Mass Teachers' Retirement Sys t$ 32,661.59 23 Peabody Retirement System $ 2,124.22 24 Quincy Retirement System $ 4,751.33 25 State Retirement System $ 29,168.42 r' 26 Wakefield Retirement System $ 4,418.41 27 Woburn Retirement System $ 4,485.20 28 Worcester Retirement System $ 3,270.86 SECONDED BY: RICHARD FOLEY VOTED: (5-0-0) UNANIMOUS Net Retiree Payroll Health Insurance Deductions Credit Union Deductions RHA Health his. Deductions Federal Tax Deductions State Tax Deductions February Administrator's Salary Postage due to Town Refund to Member Federal Taxes (EFT) Administrative Expense-Envelopes Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement Section 3(8)(c) Reimbursement INFORMATION/QUESTIONS/OTHER ITEMS • Discussed pro-rating a member's service if a member stops making payments on their buyback. The board administrator was advised that a member would have to be refunded the amounts paid in for a buyback and would not be entitled to any creditable service for an incomplete buyback. The board requested that a letter be sent to PERAC's legal department for clarification. • The Contributory Retirement Appeal Board (CRAB) has received an appeal in the case of Donald Stead v. Reading Retirement Board/PERAC and the matter has been assigned to the Division of Administrative Law Appeals for hearing or other proceedings. The board requested a copy of the appeal be sent to Attorney Nicholas Poser. • Checks were received from the following Retirement Boards for full payment of its Section 3(8)(c) reimbursement: - Malden Retirement Board - Fall River Retirement Board - Salem Retirement Board - Andover Retirement Board - Stoneham Retirement Board - Wakefield Retirement Board Medford Retirement Board - Cambridge Retirement Board Norfolk County Retirement Board - Taunton Retirement Board 1112 • Elinor Mello, who worked for the Finance Dept and retired on May 28, 1999, passed away on 2/16/09. She chose Option A at her retirement. • Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's calendar year to date statement & fund performance for period Jan. 1, 2008 to Dec. 31, 2008. • The next board meetings will be March 25, April 22, May 27, and June 24, 2009 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #8/2009 - Buyback and Make-up Repayment Worksheets Using Buyback Interest PERAC Memo #9/2009 - Data Verification for PERAC's 2008 Annual Report PERAC Memo #10/2008 - Update - Exclusion from Gross Income of Payments for Health Insurance Premiums. The Pension Protection Act of 2006 allows public safety officers to exclude from their gross income an amount up to $3,000 that is deducted from a taxable retirement allowance for health insurance premiums or long term care insurance contracts. There have been no changes in these federal provisions. PERAC Memo #11/2009 - 840 CMR 10:10(3) & 10:15(4) - Annual Review of Medical Testing Fees. 840 CMR 10:10(3) and 10:15(4) states "the medical panel may suggest `non-invasive' medical tests, which the panel considers necessary to render an opinion of the member's medical condition." The regulation further states that the Commission shall assume the cost of any non-invasive test suggested by the medical panel up to an amount the Commission shall determine annually. There are very few instances where reimbursements for medical services ordered by a Regional Medical Panel exceed $100.00. The Commission voted at their meeting held January 27, 2009 to continue the past practice of allowing PERAC staff to approve up to $100.00 per case for non-invasive medical testing associated with the medical panel process. PERAC Memo #12/2009 - 2009 Disability Seminars PERAC Memo #13/2009 - IRS Questionnaire - The IRS has issued a Pilot Governmental Plan Questionnaire to 25 governmental pension plans. Even though each of the plans has already filed a Request for a Determination Letter, tax counsel advises PERAC that this will not keep one the plans from being randomly selected and sent a questionnaire. PERAC is asking that we don't attempt to complete the questionnaire on our own, but make a copy and send the original to PERAC to complete. MACRS 2009 Spring Conference is being held June 7 - June 10, 2009 at Four Points Sheraton Hyannis Resort. PERAC Memo #14/2009 - Selection of the Fifth Member - The fifth member shall be chosen by the other four members. All members of the retirement board must be present when this individual is selected. An attempt to appoint a fifth member without the other four members all participating and all voting will be invalid. The vote need not be unanimous. A person may be appointed by a majority. PERAC Pension News OLD & NEW BUSINESS 11.13 ADJOURNMENT • FRANCIS DRISCOLL moved to adjourn this open session at 7:35 P.M. SECONDED BY VOTED: RICHARD FOLEY (5-0-0) UNANIMOUS Richard P. Foley, lst app ted Francis P. Driscoll, lst elected MAOO Ldog&~t' Vice Chairman, Danie . Seferian, 2nd appointed