The URL can be used to link to this page

Home My WebLink About2006-02-22 Retirement Board MinutesMINUTES OF THE READING RETIREMENT BOARD MEETING Wednesday, February 22, 2006 The Reading Retirement Board held a regular session meeting on February 22, 2006, in the Accounting and Finance Department Office, Town Hall, Reading, Massachusetts. The meeting was called to order at 6:00 P.M. by Chairman Joseph Veno in the presence of members Francis Driscoll, Gail LaPointe, Richard Foley, and Board Administrator, Colleen Loughlin. Board member Daniel Seferian was not able to attend. MINUTES • Regular session minutes for the December 14, 2005 meeting were signed by all board members who were present except for Elizabeth Klepeis who is no longer on the board. • RICHARD FOLEY moved to accept the January 25, 2006 regular session minutes as written. SECONDED BY: GAIL LAPOINTE VOTED: (4-0-0) APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • FRANCIS DRISCOLL moved to approve the following new member: Joseph Huggins School (Director of Facilities) SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS Date of hire & membership 1/30/06 9%+2% Funds to be transferred from Melrose • FRANCIS DRISCOLL moved to approve the following refunds: Doreen Bolnick (Library) Resigned 8/8/03 Total Deductions & interest Less 50% interest Net refund (rollover to IRA) 8 years, 1 month $13,034.01 $ 2,309.39 $10,724.62 Vanessa Stolar (School - Admin) Resigned 9/16/05 Total Deductions & interest Less 100% interest Net refund (rollover to IRA) Daniel E. Bornstein Resigned 9/14/05 (Inspections Div) Total Deductions & Interest Less 100% interest Less 20% federal "income tax Net refund (cash) SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS 8 months $2,559.30 $ 15.26 $2,544.04 2 years, 5 months $8,794.80 $ 51.68 $1,748.62 $6,994.50 • Nicholas Poser has notified the Board that Mr. Cacciapuoti's deposition (regarding Robert Toussaint) was conducted Thursday, January 12, 2006 at 1:30 pm at Reading Town Hall. On January 25, 2006, the Board received the transcript of the deposition of Domenic Cacciapuoti. • A check was received on January 17, 2006 from Cambridge Retirement System and Needham Retirement System for full payment of its Section 3(8)(c) reimbursement. • A check was received on January 20, 2006 from Taunton Retirement Board for full payment of its Section 3(8)(c) reimbursement. • A check was received on January 23, 2006 from Boston State Retirement System for full payment of its Section 3(8)(c) reimbursement. • A check was received on January 24, 2006 from City of Malden Contributory Retirement System for full payment of its Section 3(8)(c) reimbursement. • Kathleen Lentini, survivor of active member Charles Lentini, has requested to withdraw her funds. The Board Administrator sent an application to withdraw funds. Because she did not take full payment at time of Charles' death in March 2005, PERAC was contacted to see if she is entitled to the full amount of interest. • Theodore W. Turner, Jr., who worked for the Fire Dept. and retired on August 4, 1984, passed away on 12/10/05. 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: General Ledger Trial Balance as of November 30, 2005 & December 31, 2005 Bank Reconciliation for the month ending November 30, 2005 & December 31, 2005 The PRIT fund's monthly statement & fund performance for period ending Nov 30, 2005 & Dec 31, 2005. Request from PERAC to submit data for active members, retirees/survivors and disability retirees as of December 31, 2005 by March 31, 2006. Although the retirement system is not scheduled for a January 1, 2006 PERAC actuarial valuation, the Board will receive data analysis reports so that we can review and/or correct any questionable items, warnings or errors that are identified in the data. The Board Administrator will submit requested information. • Received memo from PERAC that COLA effective July 1, 2006 will be 3.0%. 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 March 29, 2006 board meeting. • Received memo from PERAC regarding Chapter 143 of the Acts of 2005, Allowing Certain Retirees to Change their Option Selection. This provision becomes effective on February 10, 2006 and will allow retirees who selected Option A or Option B between July 1, 2004 and December 27, 2004 inclusive, or the surviving spouse of such a retiree, to select another Option. Retirees who selected Option C during the relevant time period are not eligible to select a new Option. The reason for this change was a change in the mortality table, which increased the Option B and C benefit calculations. Three members were identified to be eligible and notified of his or her one time right to select a different Option. The individuals must file the application on or before July 1, 2006. The Retirement Board must process and implement the Option change, within 180 days of the date that the member files the application. If the retiree selects Option C, the beneficiary must have been eligible to be so designated on the date of the member's retirement. The new allowance becomes effective retroactively to the date of the member's retirement. • Received memo from PERAC regarding a revised form developed by the Social Security Administration to be completed by all new employees who begin work on or after January 1, 2005 and who are not covered by Social Security. • Received memo from PERAC advising the Board that the average interest rate paid has been determined to be 0.6% for the calendar year 2006. • The Thirteenth Annual Middlesex Retirement Educational Conference will take place on April 3-5, 2006, at the Bedford Renaissance Hotel, Middlesex Turnpike, Bedford, MA. • Received Physician's Statement and Narrative from Dr. Roth for Leone Sullivan on January 24, 2006 • Received an email from Tricia Igo (Retired State, County and Municipal Employees Association of Mass.) requesting an up to date address list of Reading's retirees. Information may be disclosed to an employee organization under M.G.L. chapter 150E, a nonprofit organization for retired public employees under M.G.L. chapter 180 • Receive memo and disc from PERAC regarding the Calendar Year 2005 Annual Statements MEMORANDUMS & LETTERS RECEIVED Segal - Memo - Cost of Veteran's Benefit for Accidental Disability Retirees PERAC - Memo #1/2006 - COLA Notice PERAC - Memo #2/2006 - Chapter 143 of the Acts of 2005, Allowing Certain Retirees to Change Their Option Selection PERAC - Memo #3/2006 Investment Manager List PERAC - Memo #4/2006 - Tobacco Company List PERAC - Memo #5/2006 - Notice to New Employee in a Job Not Covered by Social Security PERAC - Memo #6/2006 - 2006 Interest Rate set at 0.6% PERAC - Memo #7/2006 - Calendar Year 2005 Annual Statements PERAC - Financial Bulletin - January 2006 Retired State, County and Municipal Employees Association of Massachusetts Healthcare Trust Funds Memo Joseph Veno, on behalf of the Retirement Board, thanked Elizabeth Klepeis for 14 years on the Retirement Board and welcomed Richard Foley as the newest member. The next two Board Meetings will be held on February 22, 2006 and March 29, 2006. ADJOURNMENT • FRANCIS DRISCOLL moved to adjourn this open session at 7:15 P.M. SECONDED BY: DAN SEFERIAN VOTED: (5-0-0)UNANIM0US APPROVAL OF MISCELLANEOUS ITEMS FRANCIS DRISCOLL moved to approve request from eligible member to purchase prior service for creditable service: Sharon Thomas Reading 7/12/99 - 12/30/05 6 years, 5 months The total purchase amount is $12,009.74. Sharon will begin payroll deductions with the March 10, 2006 pay period. SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS APPROVAL OF VOUCHERS FRANCIS DRISCOLL moved to approve the following vouchers: 2006 Voucher # 23 Town of Reading Treasurer $ 514,811.56 24 Town of Reading Treasurer $ 2,837.52 25 Woburn Retirement Board $ 4,485.20 26 Town of Reading $ 138.84 27 Bank of America (Bolnick) $ 10,724.62 28 New England Office Supply $ 17.65 29 Merrill Lynch (Stolar) $ 2,544.04 30 Daniel Bornstein $ 6,994.50 31 Town of Reading $ 1,748.62 SECONDED BY: RICHARD FOLEY VOTED: (4-0-0) UNANIMOUS February retiree payroll Feb Administrator's salary Section 3(8)(c) Reimbursement Postage due to town Refund to member Administrative Exp. Refund to member Refund to member Refund to member (20%fed tax) INFORMATION/QUESTIONS/OTHER ITEMS • Reviewed warrant article and discussed Veteran's Benefit for Accidental Disability Retirees (Revised Segal letter; updated list of boards' acceptance of Section 1 & 2). The Board agreed that the warrant article was approved to go to Town Meeting. Gail will bring issue to the Finance Committee. Should inquire if the spouse of an accidental disability retiree that is receiving the survivor's benefit is also entitled to the veterans allowance. • Received application from member, John Holland, who has elected to have retirement deductions withheld beyond the age of 70 • Discussed the request from PERAC to obtain additional diagnostic testing from John O'Keefe in order to request a second medical panel. The Board agreed that it was up to John's attorney at this point to obtain any necessary documents to pursue a second medical panel. • Received Closing Argument on February 8, 2006 from Nick Poser regarding the Robert Toussaint's case. • Sally McDonald who worked for the Library and retired on March 7, 2003, passed away on 2/1/06. She chose Option B at her retirement. The amount of remaining funds in her account is $29,763.92 before taxes. • Ida Monohan, who retired as a Cafeteria worker in the School Dept. on October 3, 1976, passed away on 2/4/06. She chose Option A at her retirement. • Helen Franklin who worked for the Cemetery Dept. and retired on March 31, 1978, passed away on 2/6/06. She chose Option A at her retirement. 0 10 • Harry Mohla who worked for the Public Works Dept. and retired on March 5, 1982, passed away on 2/14/06. His wife predeceased him. He chose Option A at his retirement. • Since the last board meeting, checks have been received from the following Retirement Boards for full payment of its Section 3(8)(c) reimbursement: - Wakefield - Somerville - Salem - Andover - Natick - Stoneham • On February 2, 2006 PERAC notified this Board that Perry Raffi was evaluated for possible return to service and PERAC's internal Nurse Case Manager determined that he is unable to perform the essential duties of his job. • Judy Corrigan from PERAC has advised the Board Administrator that Kathleen Lentini, survivor of active member Charles Lentim, is entitled to all of the accumulated interest for a refund. • The 13`" Annual PRIM Client Conference will be held on Friday, May 19, 2006 at The Boston Harbor Hotel, Boston, MA. • The Thirteenth Annual Middlesex Retirement Educational Conference has been rescheduled to July 17 - July 19, 2006 at the same location, Bedford Rennaisance Hotel. • Copies of the following Reading Retirement Board reports were handed out for review: The PRIT fund's monthly statement & find performance for period ending January 31, 2006 • The next board meeting will be held on March 29, 2006 MEMORANDUMS & LETTERS RECEIVED PERAC - Memo #8/2006 - Buyback and Make-up Repayment Worksheets Using Regular Interest PERAC - Memo #9/2006 - Buyback and Make-up Repayment Worksheets Using Buyback Interest PERAC - Memo #10/2006 - 2006 limits under Chapter 46 of the Acts of 2002 PERAC - Memo #11/2006 - Data Verification for PERAC 2005 Annual Report PERAC - Memo #12/2006 - PERAC's Proposed Regulations (Not Yet In Effect) PERAC - Memo #13/2006 - Calendar Year 2005 Annual Statement Classes PERAC - Memo #14/2006 - Disability Retirement Benefits for Veterans, Chapter 157 of the Acts of 2005 PERAC - Memo #15/2006 - Military Pay Act (Chapter 77 of the Acts of 2005) PERAC - Memo #16/2006 - Various Investment Issues Seal- Memo - Cost of Veteran's Benefit for Accidental Disability Retirees Retired State, County and Municipal Employees Association of Massachusetts - Notice dated February 1, 2006 - List of retirement boards that have voted for a FY07 3% COLA. Retired State County and Municipal Employees Association of Massachusetts - Memo from Ralph White - PERAC Files Regular Compensation Language U Richard P. Foley, I" appointed F Francis P. Driscoll, 1" elected { ice Chairman, Dani 6B. Se erian, 2d appointed hai , Joseph . Veno, 2nd elected Gai aPointe, x Officio