HomeMy WebLinkAbout2008-10-22 RMLD Operating and Capital Budget Pension Legal Services Committee Minutes~-CE D
R t
Reading Municipal Light Department Board of Com~j ~r - R
Operating and Capital Budget/ Pension/Legal Serv's1'S~ittts
October 22, 2008 n 0
Start Time of Regular Session: 6:10 p.m.
End Time of Regular Session: 7:25 p.m.
Attendees:
Committee Members: Mr. Pacino and Ms. Kearns
Commissioners: Mr. Soli
RMLD Staff: Messrs. Cameron and Fournier
Presentation
Pension Trust - Larry Stone, Stone Consulting Inc.
Mr. Fournier introduced Mr. Larry Stone, President Stone Consulting, Inc. and said that Mr. Stone would
present the RMLD's actuarial valuation.
Mr. Stone explained that every two years an actuarial valuation of the liabilities associated with the
benefits for RMLD employees and its retirees is performed. Mr. Stone said that the last valuation was
performed on January 1, 2006, the current valuation was performed on January 1, 2008 and the results are
used to determine a funding contribution to the Trust Fund that RMLD has created to help pay for those
benefits for fiscal years 2008 and 2009. The results for both 2008 and 2009 were that the fund was fully
funded therefore no contribution was required for either year from the RMLD as the employer into the
Trust Fund. Mr. Stone explained the assumptions used in the study.
Mr. Stone said that there is $40 million necessary to pay the liabilities associated with the RMLD
retirement benefits. Employees also make contributions. As of January 1, 2008 there was enough funds
in the Retirement Trust to pay for the benefits. There were no required contributions from the RMLD in
2008.
Mr. Stone pointed out that since January 1, 2008, the economic environment has changed. Mr. Stone said
that the assumption is that the assets would grow at 8 which will not happen this year. Mr. Stone said
that based on the current market situation the amount of the deposit into the pension trust could be $1.0
to $1.5 million for one year instead of zero.
Ms. Kearns stated that Mr. Stone has to provide a more detailed report of the pension trust analysis before
she can make a decision on what amount to deposit into the fund. Ms. Kearns pointed out that $400,000
has been put aside in the budget for funding.
Mr. Stone said that he has all the detail to back up his presentation to the Committee and he can supply
that information if that is what they want. Mr. Fournier said that the RMLD would come back to
Committee with a more detailed report on the pension trust.
Mr. Cameron asked if the Committee had time to discuss a legal representation issue. Ms. Kearns said
that they did not have enough time to discuss the issue and that it would have to be taken up at another
meeting.
Motion to Adjourn
At 7:25 p.m. Ms. Kearns made a motion seconded by Mr. Pacino to adjourn the meeting.
Motion carried by show of hands 2:0:0.