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, Shawn Duhamel and newly appointed member Gerald Coughlin. Also present were Debra Sullivan, Wendy Cherry, Anthony Tranghese of FIA and Attorney Michael Sacco.
Section I: Regular Business – Regular Meeting
Chairman Kelley began the meeting by welcoming the newly appointed member, Gerald Coughlin, to the Board.
Minutes:
Minutes dated June 23, 2011: Regular Board Meeting
Minutes dated June 23, 2011: Executive Session
Motion made by Mr. Barrett to approve minutes; seconded by Mr. Manfredi. Unanimously voted.
Warrants:
Warrant #5, dated May 31, 2011: $2,491,769.56 (Final w/ Trial Balance)
Warrant #6, dated June 30, 2011: $1,412,037.01 (Partial)
Warrant #7, dated July 31, 2011: $ 112,932.05 (Partial)
Warrant #8, dated August 31, 2011: $ 3,545.76 (Partial)
Motion made to approve warrants by Mr. Barrett; seconded by Mr. Manfredi. Unanimously voted.
Public Comment:
None
Section II: Executive Session:
Pursuant to MGL Chapter 30A, Section 21 (a)(3), and(5) the Board will enter into executive session to discuss and vote on the Accidental Disability retirement application of Kevin Connolly, former Group 4 Fire Fighter.
Pursuant to MGL Chapter 30A, Section 21 (a)(3), and(5) the Board will enter into executive session to hold a disability evidentiary hearing for Robert Ferrari, former Group 4 Fire Fighter.
Pursuant to MGL Chapter 30A, Section 21 (a)(3), and Section (5) to discuss pending litigation regarding Michael Daley.
At 8:35 a.m., motion made to enter into executive session by roll-call vote:
Mr. Kelley yes
Ms. Barrett yes
Mr. Manfredi yes
Mr. Coughlin yes
Mr. Duhamel yes
The Board will re-enter into the regular meeting immediately following executive session.
Roll-call vote to exit executive session and re-enter the regular meeting at 9:25 a.m.:
Mr. Kelley yes
Ms. Barrett yes
Mr. Manfredi yes
Mr. Coughlin yes
Mr. Duhamel yes
Section III: Solicitation & Correspondence:
Powers and Sullivan Draft Auditor findings for December 31, 2010 for acceptance.
Motion made by Ms. Barrett to approve draft findings; seconded by Mr. Manfredi. Unanimously voted.
Retirement Board Credit Cards:
The Board's application for replacement of Bank of America credit cards are in the application process. The current Bank of America credit cards will only be active until July 1, 2011. Old cards should be brought to the office for destruction.
Investment Manager Interviews:
Board to discuss and set dates for August & September 2011 meetings in order to schedule the upcoming annual manager reviews. Ms. Barrett suggested scheduling two separate meeting of five managers each.
These annual investment manager reviews have been scheduled for September 28, 2011 & November 16, 2011.
Investment Policy Statement – Draft:
Mr. Tranghese presented the draft Investment Policy Statement for the Board to review. He told the Board that the Asset Allocation page has been updated with the new managers. The Board is expected to review this draft statement and vote on its adoption at their August 2011 meeting.
PERAC Memo's:
PERAC Memo #22/2011: Reinstatement to Service under G.L. c.32 sec. 105
PERAC:
The Board received and reviewed the following items:
PERAC has sent the 2010 Annual Report
PERAC Pension Newsflash: PERAC has re-scheduled its Regulatory Hearing to August 30, 2011
Conferences/Education:
PERAC Emerging Issues Forum: September 14, 2011
MACRS One Day Seminar for Board Administrators & Staff: August 23, 2011
Motion made by Ms. Barrett to approve attendance by staff & Board for both conferences; seconded by Mr. Manfredi. Unanimously voted.
Board Re-appointment:
Motion made to re-appoint the Boards' fifth member, Shawn Duhamel, by Mr. Manfredi; seconded by Mr. Coughlin. Unanimously voted.
Copier Lease Renewal:
Board to discuss the renewal of a Ricoh Aficio MP6001 copier. Current lease has expired in April 2011. If the Board decides to not get a new copier, a monthly service fee will apply. Ms. Sullivan told the Board that she has received information on a new model, the Ricoh Aficio MP6001 copier, which is less expensive per month for the lease, and comes with a three year service contract. If the Board decides to change models, the existing hard drive, which contains images of all scanned and copied documents, is available to purchase & destroy for $350, which is the cost of Ricoh purchasing and installing a new hard drive before returning the copier.
Motion to approve the lease of a new Ricoh Aficio MP6001 copy machine made by Ms. Barrett; seconded by Mr. Manfredi. Unanimously voted.
Motion to purchase the hard drive from the existing Canon copy machine for security purposes, made by Ms. Barrett; seconded by Mr. Manfredi. Unanimously voted.
Investment Correspondence:
The Board received and reviewed the following investment correspondence:
• Babson Capital Supplemental Regulation:
• Supplemental Regulation for Board's approval for the Babson Capital Floating Rate Income Fund, L.P
• State Street Global Advisors: June 30, 2011 Investment Performance & Analysis
• Eaton Vance: Viewpoint Market Insight for 2nd Quarter 2011
• Westfield Capital 2nd Quarter Performance Report
Third Party Monitoring:
Scott & Scott: 2nd Quarter 2011 Report
O'Melveney & Myers, LLP: SEC's Recent Corporate Financial Statements
Legal:
Public Records Request:
Atty. Sacco told the Board that Atty. Nicholas Poser has sent another public records request for all records regarding the Michael Daley, Section 91 Issue. Already sent with no fees are the copies of minutes and all correspondence to and from the cities/towns, retirement boards and school districts listed on Michael Daley's website as current and past clients. Over 800 copies were made and submitted to Atty. Poser in early July 2011. Atty. Sacco recommended to the Board that they now follow the standards for public records request fees when producing these records.
Motion made by Mr. Coughlin to follow the public records request standards for fees when producing any additional documents regarding Michael Daley for Atty. Poser; motion seconded by Mr. Manfredi. Unanimously voted.
Public Record Request – Authorization for Payment Due:
Gloucester Retirement Board has requested $173.97 in order to supply invoice copies from Financial Advisory Associates, regarding Michael Daley's Section 91 earnings.
Motion to approve the payment of $173.97 for invoice copies from Gloucester Retirement Board made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Regular Compensation – Holiday Pay:
Ms. Sullivan told the Board that she had received a question from the School Department on whether or not retirement deductions should be taken from the Holiday Pay. This new compensation plan entitled "New Article – Holiday Pay' states that certain members, based on their length of service, will receive 1, 2 or 3 paid holidays, in addition to the July 4th holiday.
Members of the collective bargaining unit are not eligible for this benefit until they reach five years of service. Atty. Sacco told the Board that because this is based upon total creditable service, it is not considered "regular compensation", and therefore, retirement deductions should not be taken from this type of pay.
Motion made by Mr. Duhamel to not take retirement deductions from this type of Holiday Pay; motion seconded by Ms. Barrett. Unanimously voted.
Hearing on Section 91 earnings M. Daley:
Board to conduct a Section 91 Hearing (M.G.L. c. 32 s. 91) to discuss possible excess earnings made by Michael Daley, for the calendar years 2007, 2008, 2009 & 2010. Atty. Nicolas Poser was notified in a letter from Atty. Michael Sacco, dated July 1, 2011, of the hearing date of July 22, 2011. In this letter, it was requested that Mr. Daley be present for this hearing to answer questions relating to earnings from his role in Financial Advisory Associates (FAA). It was also stated in this letter that Mr. Daley would have an opportunity to address the Board, either directly, or through his counsel. Through his counsel, Mr. Daley declined to show up for the hearing.
Atty. Sacco reviewed the hearing process and reason for holding it for the new Board member, Gerald Coughlin. The Board reviewed a spreadsheet of earnings for work performed for FAA, which were specifically invoiced under Principal (Michael Daley). For the period of 2007 through 2010, the total amount of excess earnings reported by Mr. Daley's clients from invoices, totals $323,784.53. The Board is waiting for invoices from Gloucester Retirement Board, therefore, this total is subject to change.
Atty. Sacco recommended to the Board that they vote to find that Mr. Daley has total excess earnings of $323,784.53, with the understanding that this may change with the receipt of Gloucester Retirement Board's invoices. He also recommended to the Board that they do not vote to withhold Mr. Daley's retirement allowance at this time.
Mr. Duhamel asked who these excess earnings are owed to. Atty. Sacco stated that under Section 91, if the cities/towns or retirement boards do not go after the excess earnings, that the Plymouth Retirement Board could collect all the money, or reach an agreement to settle on an arranged amount. He added that Mr. Daley has the statutory obligation to notify the Treasurer of the city/town that he is working for and to keep track of his earnings. Mr. Duhamel stated that although these excess earnings are in violation of the statute, to collect this whole amount would be excessive.
Motion made by Mr. Duhamel to find that Mr. Daley has exceeded his allowable earnings after retirement, under M.G.L. c. 32, s. 91, in excess of $323,784.53 for the period of 2007 – 2010, with the understanding that this amount may increase with the Gloucester Retirement Board invoices; motion seconded by Mr. Manfredi. Unanimously voted.
The Board will not withhold Mr. Daley's monthly retirement allowance at this time. Atty. Sacco will notify Mr. Daley and his counsel, Nicolas Poser, of the Board's vote.
Note: Mr. Daley was informed by Atty. Sacco, in a letter dated January 29, 2010, that if he waived his retirement allowance with the Town of Plymouth Retirement System, there would be no restriction on his earnings after retirement, and therefore, he would not be subject to earnings limitations/restrictions for excess earnings. To date, Mr. Daley has not waived his monthly allowance from the Town of Plymouth Retirement System.
Notice of Debra A. Silva's Appeal to CRAB:
Atty. Sacco has received notice that Deborah Silva has filed an appeal on the Board's vote to deny her Accidental Disability retirement benefits, at their meeting on June 23, 2011.
Section IV: Membership:
New Hires:
9% Kessler, Maureen, Group 1, Secretary
Perm. Full-time $1,173.50 bi-weekly
Start Date: 06/20/2011
Motion made by Mr. Duhamel to approve new hire; seconded by Mr. Manfredi. Unanimously voted.
Refunds:
Town:
Fuller, Gail, Group 1, Planning Admin. Secretary
7 months service (9/30/02 – 5/23/03)
Total distribution, including FWT: $372.05
School:
Clark, Elaine, Group 1, Special Needs Aide
5 months service (1/3/00 – 6/30/00)
Total distribution, including FWT: $45.63
Harrington Kristen L., Group 1, IMC Aide/SAM
4 Months Service (8/31/99 – 12/15/99)
Total distribution, including FTW: $172.14
Lindros, Marie, Group 1, Special Needs Aide/SAM
5 years creditable service (10/25/94-11/01/99)
Total Distribution, including FWT: $2,008.58
Bourke, Michael, Group 1, Custodian
4 years, 8 months service (11/13/06-7/1/11)
Total Distribution, including FWT: $13,192.85
Motion made by Mr. Duhamel to approve refunds; seconded by Mr. Manfredi. Unanimously voted.
Retirements:
Town:
Lenox, John R., Group 1, Director of Planning & Development
19 years, 3 months service (8/29/83 – 9/5/11)
Superannuation retirement, option b
Retirement date: September 5, 2011
Lindsay, William, Group 1, DPW Water Dept.
36 years, 9 months service (9/9/74 – 7/8/11)
Superannuation retirement, option c
Retirement date: July 8, 2011
School:
Ellis, Sharon, Group 1, Planetarium Program Instructor
10 years, 1 month service
Superannuation retirement, option A
Retirement date: June 23, 2011
Soares, Alesandra, Group 1, Pupil Personnel Services
34 years, 3 months service (2/28/89 – 8/26/11)
Superannuation retirement, option
Retirement date: August 26, 2011
Motion made by Ms. Barrett to approve retirements; seconded by Mr. Manfredi. Unanimously voted.
Beneficiary Lump Sum Distribution:
William Loring, retired Fireman, died on July 4, 2011. Mr. Loring did not have an updated Beneficiary Form on file, but had changed his beneficiary designation from his daughter, Pamela Loring Russo to granddaughter, Pamela Carter on his May 1, 2001, Affidavit. Ms. Russo has written a letter to the Board stating that she does contest the beneficiary change made in 2001. The benefit payable to Ms. Carter is a lump sum distribution for the four (4) days Mr. Loring was alive in July 2011. Will the Board vote to have final payment made to Pamela Carter?
Motion to approve the distribution of 4 days retirement allowance to Mr. Loring's granddaughter, Pamela Carter made by Mr. Manfredi; seconded by Mr. Coughlin. Unanimously voted.
3(8)(c ) Liability:
O'Callaghan, Mildred, former Tutor, worked for the Plymouth School Department from 9/1979 through 6/1980. Ms. O'Callaghan was not allowed membership into the Retirement System due to her position as "Tutor". Ms. O'Callaghan is currently a member of the MTRB and would like to purchase this 10 months of service. Will the Board accept 3(8)(c ) liability for this 10 months of Tutor Service?
Since Ms. O'Callaghan was never a member of the Plymouth Retirement System, Atty. Sacco told the Board that they may deny this liability and Mass Teachers' will have to accept it instead.
Motion made to deny 3(8)c liability for Ms. O'Callaghan by Ms. Barrett; seconded by Mr. Duhamel. Unanimously voted.
Public Record Request Response
Gloucester Retirement Board has requested $173.97 in order to supply invoice copies from Financial Advisory Associates, regarding Michael Daley's Section 91 earnings.
Motion to approve the payment of $173.97 for invoice copies from Gloucester Retirement Board made by Mr. Manfredi; seconded by Mr. Duhamel. Unanimously voted.
Next Meeting:
Regular August Board Meeting: Friday, August 26, 2011, 8:30 a.m.
Regular September Board Meeting: Friday, September 23, 2011
Annual Manager Review Meeting: Wednesday, September 28, 2011
Regular October Board Meeting: Friday, October 21, 2011
Annual Manager Review Meeting: Wednesday, November 16, 2011
Regular November Board Meeting: Wednesday, November 30, 2011
The Town of Plymouth Retirement Board unanimously voted to approve these minutes at their meeting on Friday, August 26, 2011. Original, signed minutes are available at the Retirement Office, 10 Cordage Park Circle, Suite 240, Plymouth, MA.
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