Thursday, December 23, 2010
8:30 a.m.
Retirement Board Conference Room
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 David Malaguti. Shawn Duhamel was absent. Also present were Debra Sullivan, Wendy Cherry, Anthony Tranghese from FIA and Atty. Michael Sacco.
Section I: Regular Business – Regular Meeting
Minutes:
Minutes dated November 15, 2010: Regular Board Meeting
Motion to approve minutes of November 15, 2010 meeting made by Mr. Malaguti; seconded by Mr. Manfredi. Unanimously voted.
Warrants:
Warrant #10, dated October 31, 2010: $ 1,222,396.76 (Final w/ Trial Balance)
Warrant #11, dated November 30, 2010: $ 1,677,784.12 (Partial w/o investments)
Warrant #12, dated December 31, 2010: $ 43,981.04 (Partial)
Warrant #1, dated January 31, 2011: $ 3,545.76 (Partial)
Motion to approve warrants made by Mr. Manfredi; seconded by Mr. Malaguti. Unanimously voted.
Public Comment: None
Section II: Solicitation & Correspondence:
PERAC Memo's:
The Board received and reviewed the following PERAC Memo's:
PERAC Memo #39/2010: Age 70 ½ Distribution
Investment Performance:
Anthony Tranghese was present to discuss investment performance with the Board. At November 30, 2010, the total fund was valued at $106.4 million, slightly down from the October performance. Mr. Tranghese told the Board that the fund was up approximately 5% during the month of December, a positive step in regaining losses from 2008.
Comparative Performance – Net v. Gross of Fees:
Mr. Tranghese presented the Board with a comparison chart of Plymouth Retirement System's total net & grossed up fees against those of the PRIT Core Fund. Mr. Tranghese told the Board that the information compiled before April 2008 had come from Segal Advisors so he could not be sure of the degree of detail on the net vs. gross of fees. It had come to the attention of the Board that PERAC has been ranking most of the performance of cities/towns' funds based on "gross of fees", rather than "net of fees". This major difference in computing and recording performance can alter the way the fund is measured against the mandatory entrance to PRIT using the 65% funding ratio.
The comparison chart shows a gross difference between Plymouth and the PRIT Core Fund for each year between 2000 – November 30, 2010.
Year Difference
11/30/10 -1.83
2009 5.43
2008 1.11
2007 -3.39
2006 -2.84
2005 -4.32
2004 -2.92
2003 -3.91
2002 -0.93
2001 1.62
2000 -1.32
Chairman Kelley told the Board that he is pursuing legislation that would change the measurement of performance from the current 65%, to 50% for determining mandatory entrance into the PRIT Fund.
Investment Correspondence:
The Board received the following investment correspondence:
State Street Global Advisors Public Fund Bulletin: 3rd Quarter 2010
State Street Global Advisors Performance Analysis: November 30, 2010
Wellington Performance as of 12/3/2010
Wellington Performance as of 12/6/2010
Discussion re: Investment Return Performance Net of Fees vs. Gross of Fees
PRIT Fund:
Paul Todisco has notified the Board that the PRIT Fund has exposure to two of the three hedge fund companies raided by the FBI – Diamondback Capital for $17.2 million (of which $4.8 million is in liquidation status) & Level Global for $48.4 million.
On December 14, 2010, Mr. Todisco called to inform board that as of this day no further information was available and they are still waiting for the statement on the FCC action.
Atty. Sacco told the Board that it should not be considered fraud, as the companies in question have made money for their investors.
Legal:
Policy & Procedures Manual:
Atty. Sacco told the Board that the Policy & Procedures manual was completed and asked if there were any modifications the Board would like to make before
receiving the final draft.
Mrs. Sullivan asked the Board if they would like to change their current buy back policy to implement a maximum time frame for installment plans. Atty. Sacco suggested making a policy stating that an employee would have up to five years to purchase a buy back of $10,000 or less, and up to ten years for buybacks of $10,000 or more. The Board could also include a hardship clause in this policy, which would be voted on by the Board on a case-by-case basis.
Motion made by Ms. Barrett to approve the final draft of the Policy & Procedure manual; seconded by Mr. Manfredi. Unanimously voted.
(Note: The Board did not vote to change the current policy to implement a time frame for buybacks.)
New Member Requirements - Proof of Identity:
Mrs. Sullivan asked the Board to adopt a policy for required documentation needed for membership, such as a birth certificate, copy of pre-employment physical, copy of license, a completed application, copy of any Qualified Domestic Order, or certification of none applicable. Mrs. Barrett told the Board that during the hiring process, the Town is already requiring an I-9 Form for proof of citizenship, a driver's license or passport, and a copy of a birth certificate. Atty. Sacco suggested that the Board require a copy of the driver's license, copy of the pre-employment physical, and QDRO, or certification of none applicable.
Motion made by Mrs. Barrett to adopt a policy that requires a new member into the Retirement System to have a copy of the driver's license, copy of the pre-employment physical, and QDRO, or certification of none applicable; motion seconded by Mr. Malaguti. Unanimously voted.
Appropriation Schedule
Mrs. Sullivan told the Board that at their last meeting on November 15, 2010, they voted to adopt an appropriation schedule to be implemented FY 2012, using 6.04% for the first year, then 8% for the following 2 years, extending the term of the valuation to year 2040. When Larry Stone prepared the schedule using this data, the schedule went to year 2027, which was 13 years less than previously voted. She explained to the Board that by extending the schedule to year 2040, there is no room for any extensions or flexibility in the funding.
Chairman Kelley suggested using a schedule at 8% for each year, extending only to year 2027, to retain flexibility in the schedule for future valuations.
Motion made by Ms. Barrett to amend the term date of the actuarial valuation to year 2027, from year 2040, using the 8% increases, with the understanding that this date may be moved ahead up to year 2040, if necessary in the future. Motion seconded by Mr. Manfredi. Unanimously voted.
Section III: Membership:
New Hires:
Town:
9% Ferazzi, Michael A., Group 4, Police Sergeant (ADR- Returned to Duty)
Perm. Full-time, $1,491.75 weekly
Start Date: 11/22/2010
9% Yule, Jonathan F., Group 4, Police Officer
Perm. Full-time, $833.65 weekly
Start Date: 11/15/2010
9% Elliott, Melissa A., Group 4, Police Officer
Perm. Full-time, $833.65 weekly
Start Date: 11/15/2010
9% Kelley, Thomas M., Group 4, Police Officer
Perm. Full-time, $833.65
Start Date: 11/15/2010
9% McNamara, Patrick M., Group 4, Police Officer
Perm. Full-time, $833.65
Start Date: 11/15/2010
9% Cavanaugh, Marlene K., Group 1, Senior Clerk/Police Dept.
Perm. Full-time, $607.25 weekly
Start Date: 11/8/2010
Motion made to approve new hires made by Mr. Manfredi; seconded by Mr. Malaguti. Unanimously voted.
Refunds:
Town:
McKenna, Adam N., Group 1, Town, Transfer Station Operator
10 months of creditable service (8/04/08-6/30/09)
Total distribution, including FWT: $2,820.38
Whitecotton, Corey, Group 1, Transfer Station Operator
2 years and 4 months creditable service (6/23/08-10/25/10)
Total Distribution, including FWT: $7,014.80
Motion made by Mr. Manfredi to approve refunds; seconded by Mr. Malaguti. Unanimously voted.
Transfers:
School:
Edgar, Cathleen, L. Group 1, School Dept.-ESL Aide 3 months creditable service (12/01/2001-3/01/2002)
Transferring to: Plymouth County Retirement Board
Schipellite, Ellen, Group 1, School Dept. Special Needs Aide
4 years and 1 month of creditable service (9/26/05-11/04/09)
Transferring to: Plymouth County Retirement Board
Hile, Scott R., Group 4, Police Officer
5 years and 3 months of creditable service (10/28/09-11/11/10)
Transferring to Plymouth County Retirement Board
Motion made by Mr. Manfredi to approve transfers; seconded by Mr. Malaguti. Unanimously voted.
Rollovers:
Town:
Lynch, Beth, A., Group 1, Library Page
3 years and 9 months service (12/18/06-10/05/10)
Rollover Amount: $1,715.73
Motion made by Mr. Manfredi to approve rollover; seconded by Mr. Malaguti. Unanimously voted.
Retirements:
Town:
Bridges, Edward F, Group 1, Crossing Guard
10 years service (11/20/00 – 11/24/10)
Superannuation retirement, opt b
Retirement date: November 24, 2010
Ellis, William F, Group 1, DPW Parks & Forestry
15 years, 6 months service (5/22/95 – 12/31/10)
Superannuation retirement, opt b
Retirement date: December 31, 2010
School:
Hurley, Susan M, Group 1, Cafeteria Worker
18 years, 8 months service (3/1/92 – 11/17/10)
Superannuation retirement, opt b
Retirement date: November 17, 2010
Woods, Dorothy B, Group 1, Secretary
17 years, 2 months service (11/1/93 – 1/7/11)
Superannuation retirement, opt b
Retirement date: January 7, 2011
Motion made by Mr. Manfredi to approve retirements; seconded by Mr. Malaguti. Unanimously voted.
Section IV: New Business:
Chapter 131 of the Acts of 2010 – Sections 27 & 28 (Survivor Allowance Increase):
Board to vote the date/month of the increase of survivor allowances to become effective, as stated under Sections 27 & 28 of Chapter 131 of the Acts of 2010, from $6,000 to $9,000. Board voted to adopt this increase at their meeting of October 22, 2010. (Board received a copy of a comparison chart of other cities/towns regarding this increase).
Motion made by Ms. Barrett to vote implement the increase of survivor allowance to $9,000, effective July 1, 2011, contingent upon the Special Town Meeting vote; seconded by Mr. Manfredi. Unanimously voted.
Elected Officials Compensation Committee:
Chairman Kelley told the Board that the Board of Selectmen has created the Stipends for Elected Officials Committee, and that he would like to be the appointed member from the Plymouth Retirement Board.
Motion to elect Mr. Kelley as the Retirement Board appointed member to the Stipends for Elected Officials Committee made by Mr. Manfredi; seconded by Mr. Malaguti. Unanimously voted.
Next Meeting: Friday, January 28, 8:30 a.m.
Section VII: Adjournment:
Motion to adjourn meeting at 10:12 am. made by Ms. Barrett; seconded by Mr. Manfredi. Unanimously voted.
The Town of Plymouth Retirement Board unanimously voted to approve these minutes at their meeting on Friday, January 28, 2011. Original, signed minutes are available at the Retirement Office, 10 Cordage Park Circle, Suite 240, Plymouth, MA.
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