Chairman Thomas Kelley called the meeting to order at 8:30 a.m. in the conference room of the Plymouth Retirement Office. Present Board members were Thomas Kelley, Lynne Barrett, Richard Manfredi and Shawn Duhamel. Also present was the Board of Selectmen's new appointed member, David F. Malaguti who is replacing the vacant position due to the passing of John Murphy, Jr. Also present were Debra Sullivan, Susan Turner and Attorney Michael Sacco. Anthony Tranghese, of Fiduciary Investment Advisors. Marie Guidetti, from the Plymouth Retired Employees Association, came in later.
Section I: Regular Business – Regular Meeting
Chairman Kelley welcomed David F. Malaguti.
Minutes:
Minutes dated February 26, 2010 – Regular Board Meeting
Minutes dated February 26, 2010 – Executive Session
Motion to approve both sets of minutes made by Ms. Barrett; seconded by Mr. Kelley. There was one abstention by Mr. Malaguti. Unanimously voted.
Warrants:
Warrant dated January 31, 2010: $1,292,469.04 (Final)
Warrant dated February 28, 2010: $1,957,660.58 (Final)
Motion to approve all warrants was made by Ms. Barrett; seconded by Mr. Malaguti. Unanimously voted.
Trial Balance:
Trial Balance, dated January 31, 2010, was noted.
Section II: Solicitation & Correspondence:
PERAC Memo's:
The Board received and reviewed the following PERAC Memos:
PERAC Memo #13/2010 Ethics Training Reminder-Training Must be Completed by April 2, 2010
PERAC Memo #14/2010 IRS Voluntary Compliance Program Update
PERAC Memo #15/2010 Reimbursements pursuant to G.L. c. 32, § 3(8)(c)
Public Comment:
Marie Guidetti, PREA, said she wanted to welcome David Malaguti to the Board on behalf of the Association.
Investment Correspondence:
The Board received & reviewed the following investment correspondence:
Westfield Capital Management – Performance for February 2010
Eaton Vance – February 2010 Performance Report
Wellington Management Company, LLP – February 2010 Performance Report
Section III: Membership:
Buy Backs:
Town:
Parsons, Robert Jr., Group 4, Fire Department
2 months buy back
January 31, 1990 – March 24, 1990 (Payroll error, did not take deductions)
Total cost (lump sum): $580.40
Motion to approve buyback was made by Ms. Barrett; seconded by Mr. Duhamel. Unanimously voted.
Retirements:
Town:
Adams, Richard, S. Group 1, Water Dept
14 years, 3 months service
Superannuation retirement, Option A
Retirement date: March 17, 2010
School
Kupferberg, Judith A., Group 1, School Dept. Paraprofessional
10 years, 4 months service
Superannuation retirement, Option B
Retirement Date: April 2, 2010
Motion to approve retirements was made by Ms. Barrett; seconded by Mr. Duhamel. Unanimously voted.
New Hires:
School:
9% Manning, Stephen, Group 1, Janitor
Perm. Full-time, $1,332.58 bi-weekly
Start Date: March 15, 2010
Motion to approve new hire was made by Mr. Duhamel; seconded by Mr. Malaguti. Unanimously voted.
Retirements:
Town:
Parsons, Robert E. Jr., Group 4, Fireman
20 years service CONTINGENT on the buy back of 2 months service (Mr. Parsons must purchase these 2 months of service prior to 4/1/2010)
Dates of service (1/31/1990-4/1/2010)
Superannuation retirement, Option C
Retirement date: April 1, 20106
Motion to approve retirement was made by Mr. Duhamel; seconded by Ms. Barrett. Unanimously voted.
Refunds:
School:
Anzuoni, Tracy, Group 1, Computer Lab Aide
10 years, 9 months service (9/01/1998-2/26/2010)
Total Distribution, including FWT: $12,312.54
Trepanier,Pamela Ann, Group 1, School Science Lab Aide
1 year and 3 months creditable service for the period of 3/3/95-6/30/96
Total Distribution, including FWT:$760.93
Motion to approve refunds was made by Mr. Malaguti; seconded by Mr. Duhamel. Unanimously voted.
Section II: Solicitation & Correspondence:
Investments:
Tony Tranghese went over the performance for February 28, 2010. The total assets were $98.2 million. For the month, the overall performance was 1.3% compared to the benchmark of 1.7%. Year-to-date was 1.3% and the benchmark was 1.7%. Longer term results show plan is up 34.9% for the last year.
He later referred to information he passed out regarding Wellington Management Company, llp, announcing they were restructuring their Fixed Income team. This was part of the reason they had been placed on watch status.
RFP Responses:
Chairman Kelley updated Mr. Malaguti about the current RFP that has been put out for an additional manager. Mr. Tranghese said there were 11 RFPs received and four have been selected to be interviewed. The companies that will be interviewed are Blackrock, GMO, PIMCO and Wellington. Mr. Tranghese said these four companies were some of the biggest in the investment industry and he went over their past performance. Board agreed to have the four companies come in to be interviewed at the Board's next regular meeting which was set for April 30, 2010, at 8:30 a.m. Interviews would start at 9:00 a.m. on that day and each manager will give a fifteen minute presentation.
Motion to have the four managers interviewed at next meeting on April 30, 2010, was made by Ms. Barrett; seconded by Mr. Duhamel. Unanimously voted.
Conferences:
MACRS 2010 Annual Spring Conference, June 5 – 9, 2010
Comprehensive Training Program (Sat) 6/5 and (Sun) 6/6, 2010
Ms. Sullivan asked the Board members to let her know as soon as possible, if they would be attending the conference, so she could make reservations and register them. She asked for a vote to authorize the expenses of the conference. Ms. Sullivan also asked the board for authorization to amend the current staff policy, which requires all staff to attend all educational and informational/conference meetings, and allow her to be the one to decide whether or not staff members should be required to attend any off-site meetings, as some have small children and it can become a hardship. Mr. Duhamel said he would like her to strongly encourage everyone to at least attend the pre-conference of MACRS that will be held on Saturday and Sunday. He also mentioned that for cancellation refunds, you need to request same 24 to 48 hours prior to the start of the conference.
Motion made by Ms. Barrett to authorize Ms. Sullivan to make reservations and also amend policy so that she decides whether staff members have to attend meetings; seconded by Mr. Malaguti. Unanimously voted.
Proposed New Legislation:
Mr. Duhamel explained that up until 1988, retirement systems were basically paying as they go and now they have to pay off their debt by 2030, like a mortgage. Because of the severe losses in 2008 (29%) to make up for that amount of loss in a short period of time, would force towns to really increase their appropriations by millions of dollars per year. The legislation is going to allow funding schedules to now be extended to 2040.
His association (MACRS) is offering an amendment that would allow each town, by local option (voted at Town Meeting), to change how the cost of living is calculated. It has been about 13 years since the base of the COLA has been increased. Right now it can be applied at 3% on the first $12,000. Increases would be set at $1,000 increments based on their actuaries looking at how much each system could possibly increase the COLA base without increasing the town's appropriation. Town Meeting would have to vote to establish a new base for the COLA. Right now it has been the state that sets the base by statute.
On the PRIT issue, where the state has focused on the investment returns of each system, the state fund has done better but they also lost a lot more money than local systems. New legislation says that if after five years, after being under PRIT, a town could now pull out through a town vote. Attorney Sacco added that some funds did 10% better than PRIT last year.
New Early Retirement Incentive gives employees up to three added years. This would be a local option. He didn't think it was a good idea, as the last ERI is still costing the town $500,000 a year and all the positions have been back-filled. Prior to the acceptance of the previous ERI offering, Chairman Kelley said he made the recommendation to the Town that it not accept the legislation.
Executive Session:
Pursuant to M.G.L. Chapter 91(b), the Board entered into Executive Session to discuss possible litigation strategy.
Roll call vote to enter executive session at 9:40 a.m.:
Mr. Kelley yes
Ms. Barrett yes
Mr. Malaguti yes
Mr. Duhamel yes
Present in Executive Session were Chairman Thomas Kelley, Lynne Barrett, David Malaguti and Shawn Duhamel. Also present was Attorney Michael Sacco, Debra Sullivan, and Susan Turner.
Motion made to adjourn Executive Session and return to the regular open meeting at 10:20 a.m. by roll-call vote:
Ms. Barrett yes
Mr. Malaguti yes
Mr. Duhamel yes
Mr. Kelley yes
Section IV: General Business:
Election:
Ms. Sullivan explained the issue in using the Town's permit for the stamped envelopes and that the Election Notice has already been mailed stating the envelope would have postage on it.
Next Meeting: Friday, April 30, 2010 at 8:30 a.m.
Adjournment:
Motion to adjourn meeting at 10:50 a.m. made by Mr. Duhamel; seconded by Ms. Barrett. Unanimously voted.
Respectfully submitted,
Susan Turner
Secretary
The Town of Plymouth Retirement Board unanimously voted to approve these minutes at their meeting on Friday, April 30, 2010. Original, signed minutes are available at the Retirement Office, 10 Cordage Park Circle, Suite 240, Plymouth, MA.
