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Home My WebLink About2011-01-25 Retirement Board Minutes1194 MINUTES OF THE READING RETIREMENT BOARD MEETING Tuesday, January 25, 2011 The Reading Retirement Board held a regular session meeting on January 25, 2011, in The Lower Level Conference Room, Town Hall, Reading, Massachusetts. The meeting was called to order at 6:01 P.M. by Chairman Joseph Veno in the presence of members Richard Foley, Gail LaPointe, Francis Driscoll, Thomas Clough; and Board Administrator, Colleen Loughlin. MINUTES • Regular session minutes for the September 22, 2010 meeting were signed by all board members, except Joseph Veno and Thomas Clough who were not present. • RICHARD FOLEY moved to accept the December 14, 2010 regular session minutes as written, except Thomas Clough who was not present SECONDED BY: FRANCIS DRISCOLL VOTED: (4-0-1) ABSTAINED: THOMAS CLOUGH APPROVAL OF NEW MEMBERS, RETIREMENTS, TRANSFERS AND REFUNDS • RICHARD FOLEY moved to approve the following new members: - Kathryn Melesciuc Admin. Assist. Date of hire -12/20/10 9%+2% (Library) Date of Membership - Carmen O'Rourke Secretary Date of hire -1/3/11 9%+2% (School) Date of Membership - 3/97 Michael McDonough Troubleman Date of hire & membership - 1/6/11 9%+2% (RMLD) SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS • RICHARD FOLEY moved to approve the following retirement applications: John Holland Comm Serv 2/12/11 31 years, 3 mths Option C (Superannuation) Edward Cirigliano Comm Serv 2/12/11 25 years, 3 mths Option C (Superannuation) SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS `APPROVAL OF MISCELLANEOUS ITEMS • RICHARD FOLEY moved to approve request from eligible member to purchase prior service from Massachusetts Teachers' Retirement System for creditable service: 1195 David Roy MTRS 9/7/79-6/30/81 2 years The total purchase amount is $5,425.42. David will begin payroll deductions with the February 4, 2011 pay period. SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS • RICHARD FOLEY moved to deny request for accidental death benefits for Lorraine Spataro based upon review of the death certificate and the reason for which is retired: SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS • RICHARD FOLEY moved to drop the appeal against Boston Retirement Board with regards to Jane Fiore: SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS APPROVAL OF INVOICES TO BE PAID • RICHARD FOLEY moved to approve the following warrant #APO12011 totaling $677,701.74: Commonwealth of Massa $ 649.34 RHA Health Ins. Deductions Commonwealth of Mass. $ 2,199.20 State Tax Deductions Commonwealth of Mass. $ 216.66 Child Support Internal Revenue Service $ 54,668.66 Federal Tax Deductions Reading Credit Union $ 31,903.00 Credit Union Deductions Town of Reading Treasurer $ 49,269.20 Hlth, Life, & Dental Ins. Deductions Jan Retirement Allowances $ 476,808.67 Net Retiree Payroll Town of Reading $ 294.43 Postage due Town Town of Reading Treasurer $ 3,624.77 January's Administrator's Salary The Graphics Shop, Inc. $ 205.44 Admin Expense - Envelopes State Retirement Board $ 29,138.78 Section 3(8)(c) Reimb for 2009 Worcester Retirement System $ 3,270.86 Section 3(8)(c) Reimb for 2010 Braintree Retirement System $ 3,129.25 Section 3(8)(c) Reimb for 2010 MACRS $ 400.00 Annual Dues for 2011 Lawrence Retirement Board $ 12,710.32 Section 3(8)(c) Reimb for 2010 Peabody Retirement Board $ 2,124.22 Section 3(8)(c) Reimb for 2010 Andover Retirement Board $ 2,691.91 Section 3(8)(c) Reimb for 2010 Malden Retirement Board $ 2,431.64 Section 3(8)(c) Reimb for 2010 Belmont, MA Retirement System $ 1,890.39 Section 3(8)(c) Reimb for 2010 Kingsbury Press $ 75.00 Admin Expense - 1099R Forms. SECONDED BY: FRANCIS DRISCOLL VOTED: (5-0-0) UNANIMOUS INFORMATION/QUESTIONS/OTHER ITEMS • William Spataro, who worked for DPW and retired on February 10, 1994, passed away on 8/24/10. He chose Option A at his retirement. He retired on accidental disability retirement. His spouse, Lorraine, is eligible for a Section 101 allowance of $6,000.00 per year because William retired prior to November 7, 1996. Sent application to spouse to petition for an accidental death benefit. Received death certificate. William died of lung cancer and retired from Right LS-S 1, radiculopathy, S/P lumbar larninectomy. 1196 • Received notification that a hearing will be held on Thursday, February 10, 2011 at 1:30 pm at the offices of the Division of Administrative Law Appeals regarding Reading Retirement Board v. Boston Retirement Board. This case is regarding Boston Retirement Board not accepting liability for the period that Jane Fiore was a member of the Boston Retirement Board and took a refund. Before she retired, PERAC advised Reading to allow the member to buyback the service and the boards would have to dispute the liability at a later date. PERAC sided with Reading's opinion that since she was a member of the Boston Retirement Board, that Boston should accept liability for the service. Boston Retirement Board has been paying for their Section 3(8)(c) Reimbursement. Nicholas Poser is available to represent the Board at this hearing. Received notification that Boston Retirement Board will accept liability for the period that Jane Fiore was employed at Boston City Hospital and retirement deductions were taken and she took a refund. Nicholas Poser has suggested that the Board withdraw the appeal. • Received application from member, Anthony Ricardo, who has elected to have retirement deductions withheld beyond the age of 70. • Received letter from Benoit Law Office regarding Donald Stead's appeal with regards to his excess earnings. A request for Reconsideration was submitted to CRAB. • Nomination papers were submitted by Francis Driscoll. • Mary McCue, who worked for the School Dept. and retired on June 24, 1994, passed away on 12/27/10. She chose Option A at her retirement. • Jeanette Abell, who worked for the School Dept. and retired on June 23, 1978, passed away on 1/5/11. She chose Option A at her retirement. --'f • The town withdrew their application for Involuntary Ordinary Disability for James Rich. • A check was received from the State Retirement Board for full payment of its Section 3(8)(c) reimbursement. All payments have been received. • All Affidavits were received. • 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, 2010 && Dec 31, 2010. General Ledger Trial Balance as of November 30, 2010 & December 31, 2010. Bank Reconciliation for the month ending November 30, 2010 and December 31, 2010. PERAC Financial Bulletin Financial Market Review, Fourth Quarter 2010. • . The next board meeting is scheduled for February 22, 2011 at 6:00 pm in the Lower Level Conference Room. MEMORANDUMS & LETTERS RECEIVED PERAC Memo #40/2010 - 2010 Disability Retiree Data. PERAC Memo #1/2011 - 840 CMR 10:10(3) & 10:15(4) - Annual Review of Medical Testing Fee. The Medical Panel may suggest "non-invasive" medical tests, which the panels considers necessary to render an opinion of the member's medical condition. The Commission shall assume the cost of any non-invasive test suggested by the medical panel. The Commission voted 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 #2/2011 - 2011 Interest Rate set at 0.2%. 1 197 PERAC Memo #3/2011 -2011 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 2011 is generally $245,000 ($360,000 if a current member became a member prior to 12/31/95). The general benefit limit for 2011 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 #4/2011 - COLA Notice. The Social Security Administration has announced that the latest cost of living adjustment is 0.0% 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 #5/2011 - Buyback and Make-up Repayment Worksheets Using Buyback Interest. PERAC Memo #6/2011 - Actuarial Data - PERAC is requesting Boards to submit data for active members, retirees/survivors and disability retirees as of December 1, 2010. PERAC Memo #7/2011 - Calendar Year 2010 Annual Statements - Due by May 1, 2011. PERAC Memo #8/2011 - Investment Manager List PERAC Memo #9/2011 - Tobacco Company List Memo from Ralph White regarding updates on Boards that approved the COLA Base/Section 101 OLD BUSINESS • Discuss Chapter 188 of the Acts of 2010 - COLA. Under the provisions of Chapter 32, § 1030) inserted by Section 19 of Chapter 188 systems may increase the maximum base on which the COLA is calculated in multiples of $1,000. Each increase must be accepted by a majority vote of the retirement board approved by the legislative body. OPEN SESSION FOR TOPICS NOT REASONABLY ANTICIPATED 48 HRS IN ADVANCE OF MEETING ADJOURNMENT • RICHARD FOLEY moved to adjourn this open session at 6:30 P.M. SECONDED BY: FRANCIS DRISOLL VOTED: (5-0-0) UNANIMOUS JX/Z ei4~ ai n, JosPhIPR.V o, ° d elected Gail Kp(Pointe, Ex Officio Richard P. Foley, 1St appoin d ice Chairman, Francis P. DDJiscoll, 1" elected Thomas A. Clough, 2ndappointed