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Home My WebLink About2009-01-28 Retirement Board Minutes1106 MINUTES OF THE READING RETIREMENT BOARD MEETING E L 1., Wednesday, January 28, 2009 she",Rdading" Ret ment Board held a regular session meeting on January 28, 2009, in The Lower Level Conference Room, Town Hall, Reading, Massachusetts. i U A 10: 3 S The meeting was called to order at 10:00 A.M. by Chairman Joseph Veno in the presence of members Richard Foley, Gail LaPointe, Francis Driscoll, and Board Administrator, Colleen Loughlin. Daniel Seferian was excused from this meeting, not absent. MINUTES • Regular session minutes for the November 25, 2008 meeting were signed by all board members who were present, except Gail LaPointe. • FRANCIS DRISCOLL moved to accept the December 17, 2008 regular session minutes as written. SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) ABSTAINED: APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following new members: Dorota Socha Assistant Director Date of hire & membership - 1/5/09 9%+2% (Library) Susan Simeola Clerk Date of hire & membership -1/20/09 9%+2% (DPW) • FRANCIS DRISCOLL moved to approve the following retirement application: Suzanne Reardon Elder Services 4/24/09 22 years, 7 mths Option C (Superannuation) • FRANCIS DRISCOLL moved to approve the following refund of accumulated deductions: Brian McAdams Resigned 11/21/08 7 years (RMLD) Total deductions & interest $48,830.69 Less 50% interest $ 241.57 Less 20% federal tax $ 7,639.71 Net refund (Cash) $40,949.41 SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS APPROVAL OF MISCELLANEOUS ITEMS • RICHARD FOLEY moved to continue to suspend Donald Stead's retirement benefits in conformance with the provisions of G.L. c.32, § 9 1A, 840 CMR 10. 14, and PERAC's notification of excess earnings. 1.07 SECONDED BY VOTED: FRANCIS DRISCOLL (4-0-0) UNANIMOUS APPROVAL OF VOUCHERS • FRANCIS DRISCOLL moved to approve the following vouchers: 2009 Voucher # 01 Jan. Retirement Allowances $439,760.44 Town of Reading Treasurer $ 48,611.19 Reading Credit Union $ 24,517.00 Commonwealth of Mass. $ 615.34 Internal Revenue Service $ 45,398.09 Commonwealth of Mass. $ 1,793.73 02 Town of Reading Treasurer $ 3,454.67 03 Town of Reading $ 142.21 04 Brian McAdams $ 40,951.04 05 Internal Revenue Service $ 7,640.11 06 The Graphics Shop, Inc. $ 112.07 07 Town of Reading Treasurer $ 146.25 08 MACRS $ 400.00 09 Andover Retirement System $ 349.23 10 Barnstable Retirement System $ 4,911.76 11 Belmont, MA Retirement Syst. $ 1,890.39 12 Brookline Retirement System $ 103.69 13 Malden Retirement System $ 2,431.64 14 Winchester Retirement System $ 23,229.13 SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS Net Retiree Payroll Health Insurance Deductions Credit Union Deductions RHA Health Ins. Deductions Federal Tax Deductions State Tax Deductions January Administrator's Salary Postage due to Town Refund to Member Federal Taxes (EFT) Administrative Expense-Envelopes Administrative Exp-1099R forms Annual dues for 2009 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 Voucher #4 - Refund to Member (Brian McAdams) was reduced by $1.63 and Voucher #5 - Internal Revenue Service (federal taxes B.McAdams) was reduced by $0.40. INFORMATION/QUESTIONS/OTHER ITEMS • Received notification from the Internal Revenue Service that they have received the application for a determination letter concerning the qualifications of Reading Retirement Board's plan. Once the application is approved, the board will receive the determination letter. It may take up to 145 days before the board hears from the IRS. • There will be a free education seminar on Conflict of Interest for all Town Employees as well as Boards, Committees and Commissions on February 3, 2009 in the Police Station Community Room at 7:00 pm. • A COLA reimbursement of $107,452.25 from the State for the period 7/1/08-12/31/08 was received on 12/23/08. • Received memo from PERAC requesting Boards to submit data for active members, retirees/survivors and disability retirees as of December 31, 2008. Data must be submitted by March 31, 2009. • Checks were received from the following Retirement Boards for full payment of its Section 3(8)(c) reimbursement: I i 0 - Massachusetts Teachers' Retirement Board - Lawrence Retirement Board - Needham Retirement Board Somerville Retirement Board • Received memo from PERAC advising the Board that the rate for "regular interest" on the accumulated total deductions will be 0.5% for the calendar year 2009. • Received memo from PERAC that COLA, which any system may grant, effective July 1, 2009 will be 3.0%. The Board must make a decision whether or not to grant a COLA and notify the Commission. The Administrator will notify the Town Moderator that the Board will vote for a COLA increase at the March 25, 2009 board meeting. • Savery Bizzarro, who worked for Public Works and retired on May 22, 1984, passed away on 1/1/09. He chose Option B at his retirement but there are no funds remaining. He retired on an accidental disability retirement and his spouse pre-deceased him. • All affidavits were received. • Accidental Disability retiree Donald Stead had excess earnings for 2005 and 2006. He has already been notified of excess earnings for 2007, which his lawyer is appealing to DALA. • Received memo from PERAC requesting a list of all members who have retired under superannuation between January 1, 2007-December 31, 2008. Because the Board elected to take advantage of the benefit calculation waiver process on submitting superannuation retirement calculations to PERAC for approval, then the Board must participate in the process of a bi-annual review of such calculations. Information sent to PERAC on January 27, 2009. • Received letter from Newton Retirement Board addressed to Ralph White, MACRS, sharing the Board's recommendation on possible legislative filings regarding the amount of retiree cost-of-living adjustments. Newton Retirement Board members agreed that they would support amended legislative language stipulating that a retiree who has an annual pension of less than $12,000 would be entitled to a monthly COLA of $30.00 (not based on 3% of an annual pension less than $12,000). Raising the COLA base to $16,000 while commendable, will not benefit these group of retirees. • Received letter from Attorney Nicholas Poser to advise the board that his new hourly rate is $225.00 for all work performed for the Reading Retirement Board. 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, 2008 & Dec 31, 2008. General Ledger Trial Balance as of November 30, 2008 & December 31, 2008. Bank Reconciliation for the month ending November 30, 2008 & December 31, 2008. The PERAC Financial Bulletin, Financial Market Review, Fourth Quarter 2008. • The next board meeting will be February 25, 2009 at 6:00 pm in the Lower Level Conference Room. Paul Todisco, from the PRIM Board, will be attending to discuss the PRIT funds. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #41/2008 - 2009 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 2009 is generally $245,000 ($360,000 if a current member became a member prior to 12/31/95). The general benefit for 2009 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 #1/2009 - COLA Notice - The Social Security Administration has announced that the latest cost of living adjustment is 5.8% but upon proper notice to the legislative body a Retirement Board may elect to increase this percentage up to 3% at a duly called meeting. PERAC Memo #2/2009 - 2009 Interest Rate set at 0.5% PERAC Memo - #3/2009 - Actuarial Data - Requesting that Boards submit data for active members, retirees/survivors and disability retirees as of December 31, 2008. Data needs to be submitted by March 31, 2009. PERAC Memo #4/2009 - Calendar Year 2008 Annual Statements - Calendar Year 2008 Annual Statements are due by May 1, 2009 to PERAC. PERAC auditors will be available for assistance if needed. PERAC Memo #5/2009 - Investment Manager List PERAC Memo #6/2009 - Tobacco Company List PERAC Memo #7/2009 - Chapter 467 of the Acts of 2008, Group Classifications for EMTs - This act amends G.L. c.32, § 3(2)(g), creating a local option that will allow municipalities to elect to place uniformed employees of a municipal or public emergency medical service who are certified at any level by the department of public health as an emergency medical technician in Group 4. PRIM Board 2008 Annual Report OLD & NEW BUSINESS ADJOURNMENT • FRANCIS DRISCOLL moved to adjourn this open session at 10:40 A.M. SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS V',"' Veno, 2" elected 1XI Gai aPointe, Ex Officio cv 'Ji ~ - Richard P. Foley, 1st app yFrancis P. Driscoll, 1st elected Vice Chairman, Daniel B. Seferian, 2nd appointed