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Home My WebLink About2008-07-23 Retirement Board MinutesMINUTES OF THE READING RETIREMENT BOARD MEETING Wednesday, July 23, 2008 RECEIVED The Reading Retirement Board held a regular session meeting on July 23, 2008, in The l tK erence Room, Town Hall, Reading, Massachusetts. ` The meeting was called to order at 6:05 P.M. by Chairman Joseph Veno in the zoss a 10 in mtZis3jai1 LaPointe, Francis Driscoll, and Board Administrator, Colleen Loughlin. Richard Foley and Daniel Seferian were not able to attend. Also present was Paul Sheridan. HEARING A hearing was held upon the request of Retired Police Officer Paul Sheridan. A "Notification of Termination" has been received from PERAC regarding Paul Sheridan for failure to file the required Annual Statement of Earned Income. Mr. Sheridan attended this meeting to explain that he had not submitted his paperwork to PERAC. The Board agreed to give Mr. Sheridan 1 month to comply before terirfdnating his health insurance. The Board Administrator will follow up with PERAC to see if they have his statement on file. MINUTES • Regular session minutes for the May 28, 2008 meeting were signed by all board members who were present. Minutes from the June 24, 2008 regular session to be read and approved by all board members, except Richard Foley and Francis Driscoll who were not present. Tabled until next meeting APPROVAL OF NEW MEMBERS RETIREMENTS TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following new member: Lori Miller School -Central Date of hire -12/7/98 9%+2% Date of membership - 7/1/08 The member should have been in the Reading Retirement System as of 7/1/08. The Retirement Board did not receive the PAF until 7/22/08.. Since the payroll department was able to collect retirement` deductions from payroll w/e 7/25/08, the Board only needs to collect retirement deductions for period 7/1/08-7/11/08 in the amount of $140.89. The board agreed to allow the member to make up to 3 equal payments. SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS • FRANCIS DRISCOLL moved to approve the following refund of accumulated deductions: Brian Lees Resigned 6/16/08 (RMLD) Total deductions & interest Less 50% interest Net refund (Rollover to IRA) SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS 8 years, 8 months $52,919.82 $ 604.26 $52,315.56 APPROVAL OF MISCELLANEOUS ITEMS • The Supreme Judicial Court ruled that the monetary value of the personal use of an employer-supplied ` automobile cannot be included as regular compensation for retirement purposes. All retirement allowances calculated based upon the monetary value of the personal use of an employer-supplied vehicle must be recalculated. Under Pelonzi, all retirees who were overpaid by the systems must repay the systems in full, upon the terms and conditions that each board shall prescribe, consistent with the decision in Pelonzi and the directives contained in PERAC Memo #22/2008. The boards shall set up a fair repayment plan for effected retirees. The boards should provide retirees an optimum amount of time to repay the systems, not to exceed six years (72 months) from the date of notification of the amount owed, unless approved by the Commission. Tabled until next meeting FRANCIS DRISCOLL moved to return the contributions to 2 members/retirees (Gregory Burns - $195.50 and Robert Silva - $511.76) who have paid contributions on the monetary value of the personal use of an employer-supplied automobile. SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS • FRANCIS DRISCOLL moved to accept liability for 2 days (1/25/01 & 1/26/01) that Jeffrey Morris, RMLD Systems Support Specialist, should have been in the Reading Retirement System. SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS The Board received a transfer request from Wakefield Retirement Board for member Jeffrey Morris, RMLD Systems Support Specialist. According to RMLD, Jeffrey Morris became a permanent employee as of Thursday, January 25, 2001 and should have been a member of the Reading Retirement Board. There is a notation in his file that the Town could not split his weekly time between non employee (FICA deduction) and employee (pension deduction) for Thursday and Friday. Per Beth Klepeis, the start date for retirement would be Monday, January 29, 2001. She also notes that when he retires and the two days make a difference, then he can buy them back at that time. • FRANCIS DRISCOLL moved to approve that the Board Administrator is authorized to spend up to $900.00 to purchase a shredder. SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS APPROVAL OF VOUCHERS FRANCIS DRISCOLL moved to approve the following vouchers: 2008 Voucher # 57 July Retirement Allowances $445,286.00 Town of Reading Treasurer $ 48,345.99 Reading Credit Union $ 24,732.00 Commonwealth of Mass. $ 605.34 Internal Revenue Service $ 45,421.46 Commonwealth of Mass. $ 1,900.27 58 Town of Reading Treasurer $ 3,411.59 59 Town of Reading $ 147.27 60 UMass Conference Services $ 174.00 61 Pioneer Investment Mgmt USA $ 52,315.56 FBO Brian Lees Net Retiree payroll Health Insurance Deductions Credit Union Deductions RHA Health Ins. Deductions Federal Tax Deductions State Tax Deductions July Administrator's Salary Postage due to Town PERAC Training Reg. Fee Refund to Member(B.Lees-rollover) SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS INFORMATION/QUESTIONS/OTHER ITEMS • Other than police officers, fire fighters and correction officers, Group 2 and 4 members may continue in service beyond the mandatory retirement age of 65. Charles Perry, RMLD Senior Meter Technician, will be turning 65 November 2, 2008. No action is needed. Per Scott Henderson at PERAC, if the member is a group 4 and not police or fire, then he/she is able to work past age 65. Accidental Disability Retiree, Dominic Ricci, received "Notification of Termination" from PERAC for failure to file his 2007 Annual Statement of Earned Income. He notified the office that he mailed his paperwork to PERAC in April 2008. PERAC did not have copy of his paperwork. Mr. Ricci resent his information to PERAC. k There are two members that are receiving a travel allowance, which is not paid as a reimbursement. One being a town employee and the other a school employee. According to PERAC, travel allowance is subject to retirement since it is paid on a regular basis and not as a reimbursement. The board administrator contacted MTRB to confirm that the travel allowance is subject to retirement. Erika Glaster at MTRB states that travel allowance is NOT subject to retirement. The town employee is set up with the travel allowance subject to retirement, but the school employee is set up with the travel allowance not subject to retirement. The Board agreed to request an opinion letter from PERAC. The Board administrator should also check with payroll to make sure there are no other employees receiving a travel allowance that should be subject to retirement. • A transfer amount of $40,488.15 dated June 25, 2008 was received from Salem Retirement Board for Deborah Jackson, Appraiser. Salem will accept liability for 13 years, and 1 month of creditable service for the period of 3/8/99-5/2/08. • A transfer amount of $21,534.42 dated February 22, 2008 was received from Massachusetts Teachers' Retirement Board for Nancy Giannone, SPED Dept. MTRB will accept liability for 11 years and 3 months of creditable service for the period of 9/1/68-7/18/84. • At the March 26, 2008 board meeting, the Board approved retirement application for Jane Cann with a retirement date of 6/29/08. Correct date of retirement should be 6/22/08. • At the June 23, 2008 board meeting, the Board approved retirement application for Michael Cloonan with a retirement date of 6/30/08. His option selection was not received until June 25, 2008. Mr. Cloonan chose option C. • Hugh Campbell who worked for Department of Public Works and retired on February 28, 1991, passed away on 6/29/08. He chose Option A at his retirement. • Gina Morley, Option D beneficiary of James Morley, died July 6, 2008. • The Board Administrator would like to request approval to purchase a shredder. • Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & fund performance for period ending June 30, 2008. General Ledger Trial Balance as of June 30, 2008. E Bank Reconciliation for the month ending June 30, 2008. Reading's Profile in the PRIT Fund as of first quarter ending March 31, 2008 PERAC 2007 Annual Report The PERAC Financial Bulletin, Financial Market Review, Second Quarter 2008 v • The next board meetings will be August 27, September 24, October 29, November 25, and December 17, 2008 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #23/2008 - Reinstatement to Service under G.L. c. 32 § 105 - PERAC has updated form entitled Application for Reinstatement to Service from Superannuation/Termination Retirement Pursuant to G.L. c. 32 § 105 that allows members to apply for reinstatement under this section. The revised form is effective from July 1, 2008 through June 30, 2009. PERAC Memo #24/2008 - Restrictions on Post-Retirement Public Sector Employment in Massachusetts PERAC Memo #25/2008 - Investment Manager List - An updated list of investment managers who have been the subject of an exemption in the asset classes of international equity, international fined income, real estate, and alternative investments. PERAC Memo #26/2008 - Tobacco Company List PERAC Memo #27/2008 - Cost of Living Increase for Supplemental Dependent Allowance Paid to Accidental Disability Retirees and Accidental Death Survivors - Any retirement system which has accepted the supplemental dependent allowance provided for in G.L. c. 32 § 7(2)(a)(iii), or which has accepted the provisions of G.L. c.32, § 22D (under which the supplemental dependent allowance is also deemed to have been accepted), shall pay an annual amount of $687.96 beginning July 1, 2008 for each eligible child as defined in G.L. c.32, § 7(2)(a)(iii). Email from Ralph White (MACRS)- thanking all boards in voting for new COLAs in time for the July checks. The votes were for 3% COLAs with one exception, Springfield, which voted for a 2.3% COLA. Email from Ralph White (MACRS) - Local retirement systems were excluded from the $16,000 COLA base legislation in the House/Senate Budget Conference Committee's report which was released July 2, 2008. Email from Ralph White (MACRS) - H4801, the so-called Governance Reform Bill (formerly H4011) has been discharged from the House Committee on Steering and Policy and recommitted to the House Committee on Ways and Means for further review. Email from Jennifer Cole, Senior Financial Analyst and Assistant Client Service Officer at PRIT - Invitation for the 2008 PRIM Client Conference, scheduled for Thursday, September 18, 2008 at The Boston Harbor Hotel. Complete forms are due back by Friday, August 15, 2008. OLD & NEW BUSINESS ADJOURNMENT • FRANCIS DRISCOLL moved to adjourn this open session at 6:50 P.M. SECONDED BY: GAIL LAPOINTE VOTED: (3-0-0) UNANIMOUS vo~-- , Joseph R.,,Veno, 2nd elected Officio Richard P. Foley, 1" appointed Francis P. Driscoll, 1 elected Vice Chairman, Daniel B. Seferian, 2nd appointed 9