Plymouth Retirement Board Friday,
January 28, 2011 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 Shawn Duhamel. David Malaguti was absent. Also present were Debra Sullivan, Wendy Cherry, Anthony Tranghese from FIA, Atty. Michael Sacco and Assistant Town Manager Melissa Arrighi.
Section I: Regular Business – Regular Meeting
Minutes:
Minutes dated December 23, 2010: Regular Board Meeting
Motion to approve minutes of December 23, 2010 meeting made by Ms. Barrett; seconded by Mr. Duhamel. Unanimously voted.
Warrants:
Warrant dated November 30, 2010: $3,316,440.65 Final w/ Trial Balance
Warrant dated December 31, 2010: $1,191,694.09 Partial
Warrant dated January 31, 2011: $ 328,738.49 Partial
Warrant dated February 28, 2011: $ 3,545.76 Partial
Motion to approve warrants made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Public Comment:
New Hire Counseling Procedure:
Motion made by Mrs. Barrett to approve new dual counseling procedure as discussed with Assistant Town Manager Arrighi; seconded by Mr. Manfredi. Unanimously approved.
Injury Reports:
Chairman Kelley told Ms. Arrighi that it is very important that the Retirement System receive all injury reports filed with the Town. Employees are required to fill out injury reports for incidents occurring on the job, within 15 days of the injury. These documents become very important, especially if the employee later files for a disability retirement. In addition, the Retirement Office needs copies of all unpaid leave, as this type of leave may have an impact on the member’s status. Ms. Arrighi agreed and told the Board that she will speak to the HR Office to ensure that these documents are forwarded immediately upon receipt to the Retirement Office. She added that she will also send copies of all disciplinary suspensions that result in unpaid leave.
Section II: Executive Session:
Pursuant to M.G.L. Chapter 30A, Section 21B, Board will enter into executive session to hold an accidental disability evidentiary hearing for a Group 4 Fire Fighter.
Roll-call vote at 9:00 a.m. to enter into executive session:
Mr. Manfredi yes
Mr. Kelley yes
Ms. Barrett yes
Mr. Duhamel yes
The Board will re-enter into the regular meeting immediately following executive session.
Roll-call vote to adjourn executive session at 9:20 a.m. and re-enter into the regular meeting:
Mr. Kelley yes
Ms. Barrett yes
Mr. Manfredi yes
Mr. Duhamel yes
Section III: Solicitation & Correspondence:
PERAC Memo’s:
The Board received and reviewed the following PERAC Memos:
PERAC Memo #40/2010: 2010 Disability Retiree Data
PERAC Memo # 1/2011: 840 CMR10:10(3) &10:15(4) - Annual Review of Medical Testing Fee
PERAC Memo # 2/2011: 2011 Interest Rate set at .2%
PERAC Memo #3/2011: 2011 Limits under Chapter 46 of the Acts of 2002
PERAC Memo #4/2011: COLA Notice
PERAC Memo #5/2011: Buyback and Make-Up Repayment Worksheets Using Buyback Interest
PERAC Memo #6/2011: Actuarial Data
PERAC Memo #7/2011: Calendar Year 2010 Annual Statements
PERAC Memo #8/2011: Investment Manager List
PERAC Memo #9/2011: Tobacco Company List
Investments:
Comparison of
Investment Correspondence:
The Board received and reviewed the following investment correspondence;
Preliminary Performance Report from FIA – Gross of Fees @ December 31, 2010
Preliminary Performance Report from FIA – Net of Fees @ December 31, 2010
Fiduciary Advisors named in Top 100 Retirement Plan Advisors in Plan Advisor’s January 2011
PRIM Board 2010 Annual CAFR Report, dated December 20, 2010
PRIM Board Update – December 2010
State Street Global Advisors – Performance Analysis for December 31, 2010
State Street Global Advisors – Quarterly Investment Commentary for December 31, 2010
State Street Global Advisors – Market Outlook 4th Quarter 2010
State Street Global Advisors – First Quarter 2011 Forecasts
Eaton Vance Market Insight – January 2011
Pending Pension Reform Legislation:
Gov. Patrick Announces Third Phase of Pension Reform Press Release. Mr. Duhamel told the Board that the Governor’s bill does not impact existing retirees at all and would have a minimal impact on current active employees. New hires after a specific date would be affected by this bill.
Proposed Pension Reform legislation by Rep. Brownberger of
Section IV: Membership:
New Hires:
Town:
9% DeMaio, Matthew D., Group 4, Fire Figh ter
Perm. Full-time, $872.65/week
Start date: 12/27/10
9% Garber, Wesley N., Group 4, Fire Fighter
Perm. Full-time, $872.65/week
Start date: 12//27/10
9% Soell, Joshua C., Group 4, Fire Fighter
Perm. Full-time, $872.65/week
Start date: 12/17/10
9% Correa, Chadwick J., Group 4, Fire Fighter
Perm. Full-time, $872.65/weekly
Start date: 12/27/10
9% Milne, John W., Group 4, Fire Fighter
Perm. Full-time, $872.65/week
Start date: 12/27/10
9% Sampson, Shaune E., Group 4, Fire Fighter
Perm. Full-time, $872.65/week
Start date: 12/27/10
9% Murray, Thomas D., Group 4, Fire Fighter
Perm. Full-time, $872.65/week
Start date: 12/27/10
Motion made to approve new hires by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted
Refunds:
PHA:
Stefani, Richard,
7 years, 11 months service (1/20/03 – 12/31/10)
Total distribution, including FWT: $49,998.87
Motion made by Mr. Manfredi to approve refunds; seconded by Mr. Duhamel. Unanimously voted.
Transfers:
School:
Terranova, Marita, former Group 1, Special Needs Aide
Transferred to Mass Teachers Retirement Board
10 years, 11 months service (9/7/94 – 6/12/07)
Total transfer: $45,766.84
Motion made by Mr. Manfredi to approve transfer; seconded by Ms. Barrett. Unanimously voted.
Retirements:
Town:
Crombie, George R., Group 1, DPW Director
10 years service (1/20/04 – 2/23/07 & 2/2/92 – 1/20/04)
Superannuation retirement, opt c
Retirement date: February 1, 2011
Motion made to approve retirement by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Section V: Investment Performance Review – 4th Quarter 2010:
Tony Tranghese was present to review the Investment Performance for 4th Quarter 2010 with the Board. The total fund is valued at $110.5 million. Although the fund was up in December 2010, it slightly under-performed the blended benchmark with 12.7% vs. 13.2% for the year.
As of December 31, 2010, fund asset allocations were as follows: money market .8%, Fixed Income 23%, Domestic Small-Mid & Large Cap Equity 41.4%, Foreign Equity 21.2%, Real Estate 5.9%, and Alternative Investments 7.6%.
This fund was valued at $13.9 million and represented 12.6% of assets. The quarter’s portfolio’s return of -.5% out-performed the BC Aggregate Index of -1.3%, but out-performed the 1-year return with 9.1% vs. 6.5%.
MacKay Shields High Yield: (Domestic Fixed Income)
Valued at $5.6 million and represented 5.1% of assets. The portfolio’s return of 2.8% under-performed Credit Suisse High Yield Index return of 3.1%, and also under-performed the 1- year return with 12.9% vs. 14.4%.
State Street Global Advisory Flagship S&P 500 Index: (Domestic Equity)
Valued at $5.7 million and represented 5.2% of assets. The portfolio’s return of 10.8% was in line with the S&P 500 Index’s return of 10.8%, as was 1-year return also stayed in line with the benchmark with 15.2% vs. 15.1%.
State Street Global Advisors Collateral Assets
Valued at $497 thousand and represented .5% of assets.
Valued at $6.7 million and represented 6.7% of assets. During the 4th quarter of 2010, the portfolio’s return of 10.7% slightly out-performed the S&P 500 Index’s return of 10.8%, as did the 1-year return with 15.3 vs. 15.1%.
Valued at $1.7 million and represented 1.6% of assets. For the 4th quarter 2010, the fund returned 2.4% and 24.5% for the 1-year. No results for the benchmark performance.
This fund was valued at $3.6 million and represents 3.3% of assets. The portfolio’s 4th quarter return of 11.4% out-performed S&P 500 Index Fund of 10.8%, but under-performed the 1-year with 14.7% vs. 15.1%.
Eaton Vance Large Cap Value Fund: (Domestic Equity)
Valued at $5.9 million and represented 5.3% of assets. The portfolio’s 4th quarter return of 10.3% slightly under-performed the Russell 1000 Value Index’s return of 10.5%, and also under-performed the 1-year return with 11.1% vs. 15.5%.
Valued at $5.7 million and represented 5.7% of assets. The portfolio’s return of 13.9% out-performed Russell 1000 Growth Index’s return of 11.8%, and also out-performed the 1-year return with 16.9% vs. 16.7%.
Valued at $13.1 million and represented 11.9% of total assets. Boston Trust’s Small Cape Core Equity portfolio returned 16.5% in the 4tht quarter of 2010 and under-performed the Russell 2000 Index of 16.2%, and also trailed in the 1-year return with 27.1% vs. 28.6%.
Templeton Foreign Equity Series: (Foreign Equity)
Valued at $20.2 million and represented 18.3% of total assets. The portfolio’s return of 5.5% under-performed the MSCI EAFE Net return of 7.2% during the 4th quarter of 2010, and also under-performed the 1-year return with 7.5% vs. 11.2%.
Intercontinental Real Estate: (Real Estate)
Valued at $1.3 million and represented 1.2% of assets. The fund returned of 0.0% during 4th quarter 2010. It also under-performed the 1-year NCREIF Property Index of -3.6 vs. 8.1%.
PRIT Core Real Estate Fund: (Real Estate)
Valued at $5.2 million and represents 4.7% of assets. This fund returned 4.9%out-performed the NCREIF Property Index return with 6.7% vs. 6.6%, and significantly out-performed the 1-year with 5.9% vs. 2.0%.
PRIT Absolute Return: (Hedge Funds)
Valued at $5.6 million and represented 5.1% of assets. The portfolio’s 4th quarter 2010 return under-performed the benchmark 90-day T Bill + 5% return with 3.2% vs. 3.5%, but out-performed the 1-year with 7.1% vs. 5.6%.
PRIT Vintage 2006: (Private Equity)
Valued at $1.4 million and represented 1.3% of assets. This portfolio under-performed the S&P 500 + 5% with 3.5% vs. 12.7%, but out-performed the 1-year with 17.6% vs. 15.7%
PRIT Vintage 2007: (Private Equity)
Valued at $893 thousand and represented .8% of assets. The portfolio’s return of 1.3% under-performed the Index benchmark of 11.6%, but out-performed the 1-year with 19.9% vs. 16.9%.
PRIT Vintage 2008: (Private Equity)
Valued at $471 thousand and represented 2.3% of assets. The portfolio’s return of 1.0 under-performed benchmark of 11.6%. and also the year-to-date return with 16.3% vs. 16.9%.
PRIT Vintage 2009: (Private Equity)
Valued at $66 thousand and represented .1% of assets. The portfolio’s return of 20.3% out-performed benchmark of 11.6%, but under-performed the 1-year with -3.1% vs. 16.9%. This fund is in the preliminary stages of funding, and therefore is not expected to have positive performance.
PRIT Vintage Year 2010: (Private Equity)
Valued at $22 thousand and represented 0.0% of assets. The portfolio’s return of 1.2% under-performed benchmark of 11.6%. No 1-year results. This fund is in the preliminary stages of funding, and therefore is not expected to have positive performance.
BlackRock Global Allocation Fund
Valued at $5.3 million represented 4.9% of assets. This fund out-performed the Blackrock Hybrid Index return with 6.1% vs. 4.7% for 4th quarter 2010. No 1-year performance.
Valued at $5.6 million and represented 5.1% of assets. This fund out-performed the 65% MSCI AC World 35%BC AGG Index with 8.5% vs. 5.2%. There are no performance results for the 1-year.
Town of
Mr. Tranghese presented the Board with a comparative performance summary of the Town of
Mr. Tranghese told the Board that interest rates are still very low and are expected to increase soon. He suggested to the Board that they look into investment in bank loans, using money from the upcoming July 1, 2011 appropriation. The Board will discuss this asset class at their February meeting. Mr. Tranghese also told the Board that he would like to discuss MacKay Shields’ under-performance at the February meeting.
Section VI: Adjournment:
Motion to adjourn meeting at 10:45 am. made by Ms. Barrett; seconded by Mr. Manfredi. Unanimously voted.
Next Meeting: Friday, February 18, 2011, 8:30 a.m.The Town of
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