FRANKLIN REGIONAL RETIREMENT SYSTEM BOARD MEETING MINUTES February 29, 2012

Transcription

1 FRANKLIN REGIONAL RETIREMENT SYSTEM BOARD MEETING MINUTES February 29, 2012 A meeting of the Franklin Regional Retirement Board, duly posted to be held in the Board office, 278 Main Street, Suite 311, Greenfield, MA., on the above date was called to order at 8:02 AM by Board Chair, Sandra Hanks with Board Members Herb Sanderson, Mary Stokarski and David Gendron present. Also present were Executive Director Dale Kowacki, Assistant Director Susan Bobe and Administrative Assistant Christine Rodriguez, and Tom Donegan of Dahab Associates, and Paul Todisco from PRIT. Prior to and during the meeting, the following items were available for the Board s review: monthly financial statements, current investment statements, invoices, and member and retiree files related to items on the agenda. Payroll, Refunds, Transfers and Bills Warrants On a motion made by M. Stokarski and second by D. Gendron, the Board voted unanimously to approve the warrants as follows: Retirees Payroll $540, Refunds* 108, Transfers 103, Bills 150, Bills 59, For a total of: $962, *additional refund approved at end of meeting Paul Mokrzecki joined the meeting at 8:09 AM. Cash Transfer between Investments and bank On a motion by D. Gendron and a second by M. Stokarski, the Board voted to transfer $533, from Seizert to TDBank to cover next month s warrants. P. Mokrzecki voted against the motion. Review and Acceptance of Meeting Minutes On a motion made by M. Stokarski and second by P. Mokrzecki, the Board voted unanimously to approve the minutes of the regular meeting held on January 25, New Members On a motion made by H. Sanderson and second by D. Gendron, the Board voted unanimously to approve the new and existing members as follows: Betit, Jeremy L. SHB 01/30/2012 Bouchard, Elizabeth S. OGE 01/02/2012 Brunault, Frank A. FRN 01/09/2012 Hallenbeck, Ann M. MOH 01/17/2012 Page 1 of

2 Hamberg, Jeffrey C. OGE 01/17/2012 Holmes, Juniper R. MOH 12/13/2011 O Shea, Kaitilin S. CON 01/12/2012 Patterson, Shawn T. DER 12/19/2012 Preston-Wells, Lauren E. MOH 11/28/2011 Yuryan, Kachina MOH 11/28/2011 Existing Members Different Units: Benjamin, Mary O. SND 01/20/2012 Durant, Sherri-Lee DER 01/23/2012 Fox, Kevin P. COL 01/30/2012 McLellan, Tabatha A. LEV 01/03/2012 New Retirees: On a motion made by D. Gendron and second by H. Sanderson, the Board voted unanimously to approve the following retirements: Clark, David PERAC approval has been received for a Superannuation Retirement Option B, effective December 16, Mr. Clark worked for the Towns of Erving and Northfield as a part-time police officer accruing 22 years, 7 months of service. Eaton, Harold PERAC approval has been received for a Superannuation Retirement Option C, effective December 31, Mr. Eaton worked for the Town of Deerfield for 38 years, 6 months. Fairman, Karen PERAC approval has been received for a Superannuation Retirement Option A, effective December 31, Ms. Fairman worked as a custodian for the Town of Leverett elementary school for 24 years, 2 months. Holden, Carolyn PERAC approval has been received for a Superannuation Retirement Option C, effective December 31, Ms. Holden worked as an assessor s clerk for the Town of Northfield for 16 years, 6 months. Mallet, Roger PERAC approval has been received for a Superannuation Retirement Option A, effective December 31, Mr. Mallet was employed by the Town of Orange for 28 years, 3 months. Ryan, Christopher PERAC approval has been received for a Superannuation Option A, effective January 15, Mr. Ryan was employed by the Towns of Leyden, Warwick, Whately and Templeton for 29 years, 6 months. Accept Liability for Buybacks and Makeups through other Systems: On a motion made by D. Gendron and second by H. Sanderson, the Board voted unanimously to accept liability for the following buyback through another system: 1166 Page 2 of 8

3 Sakowicz, Antonio the Northampton Retirement Board, on behalf of former member, requests FRRS to accept liability for creditable service of 1 year, upon payment to the Northampton Retirement Board for refund of contributions given 2/13/2007 for service with the Towns of Conway and Wendell between 01/03/2006 and 01/02/2007. The refund also included a transfer-in from the Greenfield Retirement System. The Greenfield Retirement System has agreed to accept liability for 10 years, 1 month, 9 days for service from 06/06/1995 to 07/15/2005. Military Buybacks: On a motion made by D. Gendron and second by H. Sanderson, the Board voted unanimously to approve the following military buyback: Kevin H. Scarborough current member of the Town of Deerfield and the South Deerfield Fire District has requested a purchase of military active duty time. A DD214 has been provided showing a total of 1 year, 3 months, 13 days. The total cost of his buyback based on his first 12 months of earnings as a member of the Franklin Regional Retirement System is $5, Interest does not accrue on this balance. (1 st year salary was $39, ) Deaths: The following deaths of FRRS retirees were noted: Bixby, Fred - an Option A disability retiree from Leverett since 9/7/2004, Mr. Bixby served as the Chief of Police. The Leverett Treasurer informed the office of his death on January 25, No obituary was found in local newspapers and the family has not contacted the office. Mr. Bixby had years of service. Rice, True - died on 2/10/2012. Mr. Rice was an option B retiree since 6/30/1988 from the Town of Orange School Department. He served for years. There are no funds remaining for his beneficiary. Stone, Bernice died on 2/10/2012. Ms. Stone was an option B retiree since 9/15/1985 from the Mahar School District. Ms. Stone served for 18 years. General Business: Question Call Fire Service under 4(2)(b) for Gary Stokarski (SDF) Gary Stokarski, Fire Chief, South Deerfield Fire Department, submitted an application for Superannuation Retirement effective 1/2/2012. Upon review of his creditable service, it was noted that in February, 2003, the Board approved 5 years of creditable service for his work as a call firefighter in the South Deerfield Fire District citing c. 32, 4(2)(b) which reads in part: (b)..the board shall credit as full-time service not to exceed a maximum of five years that period of time during which a reserve or permanent- Page 3 of

4 intermittent police officer or a reserve, permanent-intermittent or call fire fighter was on his respective list and was eligible for assignment to duty subsequent to his appointment; and provided, further, that such service as a permanent-intermittent or call fire fighter shall be credited only if such permanent-intermittent or call fire fighter was later appointed as a permanent member of the fire department... Mr. Stokarski was a call firefighter in SDF beginning in January 1976 up until his appointment as a full-time firefighter for the unit on 4/23/2001. Coinciding with his appointment was the acceptance of the unit into this retirement board effective 7/1/2001. It was not until February 27, 2003, that the call service was granted to Mr. Stokarski at no cost to him. It is Attorney Sacco s opinion that this service is not in compliance with 4(2)(b) because SDF is not a civil service fire department, and he further opines that if it is ultimately allowable, it should not be free to the member. This opinion is currently being tested in one of his cases, MacAloney VS Worcester Regional Retirement Board (see attached). Because the outcome of this case will not be known for a few years, Mr. Sacco has suggested the following: 1. Rescind the 2003 vote of 5 years. If the case is resolved in the member s favor, Mr. Stokarski s benefit will be increased and a retro-active payment will be made to him. If it is resolved in the Board s favor, no further action will be required of the Board 2. Determine appropriate contributions for actual hours worked 1976 to November 8, 1981 and approve the purchase of this pro-rated call fire service and collect payment from Mr. Stokarski prior to finalizing his retirement benefit. If case law later determines this service should be free, the Board can refund this payment. Note: Mary Stokarski recused herself from the discussion and votes regarding this agenda item. On the advice of legal counsel, on a motion by H. Sanderson and a second by P. Mokrzecki, the Board voted to rescind the 5 years of creditable service granted to Gary Stokarski on February 27, 2003, and to wait for the resolution of pending legal cases before setting Board policy that free service to police and call firefighters under MGL 32 4(2)(b) does, or does not, pertain to civil service communities only. On the advice of legal counsel, on a motion by H. Sanderson and a second by D. Gendron, the Board voted to approve the following makeups, with the understanding that Board policy as to whether or not service granted under MGL 32 4(1)(b) is free or not is pending the resolution of current legal cases Gary Stokarski - current member in the South Deerfield Fire District has requested a makeup purchase for time worked prior to unit membership Page 4 of 8

5 for two periods the first as the elected Clerk/Treasurer of the district for 2 years, 11 months, 26 days from 4/5/1978 to 4/1/1981 for the amount of $ The second is for service as the fulltime Firefighter (and Chief) for 2 months, 8 days, from 4/23/2001 to 6/30/2001, for the amount of $ In both cases payment must be made by March 31, 2012, otherwise interest will accrue as allowed by law. Vote Reallocation of last year s Budget Line Items On a motion by P. Mokrzecki and a second by H. Sanderson, the Board voted unanimously to approve a transfer, in the 2011 budget, of $6, from Management Fees to Education and Training to adjust for a deficit. Action needed to implement recent Pension Legislation: a. Minimum Option D benefits to $6k from $3k After discussion the Board requested that the list of potential benefits be corrected as to the inclusion of inactives and it be ready for the March 28 meeting. b. Board Members Stipend to $4,500 from $3,000 Due to Investment Managers scheduled for presentations, the discussion on this topic was not completed and thus postponed until the March 28 meeting. Investment Managers 9:15 AM Tom Donegan, Chief Operating Officer from Dahab reviewed the 4 th quarter results. D. Gendron left the meeting at 9:45 AM. 9:45 AM Paul Todisco, Senior Client Service Officer, gave a performance update and reviewed changes to the composition of the PRIM Board and Advisory Committees. Action needed to implement recent Pension Legislation - continued c. Minimum $15k Benefit for Greater than 25 years Service The Board decided to postpone this topic until the March 28 meeting pending clarification from PERAC on whether there is a distinction between fulltime or part-time, elected or appointed, other service credits (buybacks, makeups, military, LOA, civil service). Page 5 of

6 Approve Additional Expenses to implement Positive Pay with TDBank In June 2011 the Board voted to use TDBank s Positive Pay service to protect our accounts from check fraud. To continue with the implementation of this system, a software program must be purchased that will allow us to produce the file in the required format. On a motion made by P. Mokrzecki and a second by M. Stokarski, the Board unanimously voted to approve $ for the purchase of software to implement Positive Pay. New Business: Announcements, etc.: 1. Board Member Data request from PERAC due ASAP The Board Member Data Request Form was distributed to the Board in the mailed agenda packets and collected by staff at the meeting. 2. Ethics Exam due by April 1 st every two years A copy of the Summary of the Conflicts of Interest Law was distributed to the Board and Dale announced that the online Ethics training program must be completed and certificate of completion turned in to the retirement office. 3. Board Member Financial Statements due by May 1, 2012 A PERAC booklet regarding Board Member Financial Statements was distributed to the Board. The statements will be discussed at the March 28 Board meeting. 4. Hand out Personnel Policy for possible discussion next month The Board felt it was unnecessary to review the personnel policy this year as it was discussed and modified the past three years. Additional Refund: On a motion made by H. Sanderson and a second by P. Mokrzecki, the Board unanimously voted to approve an additional refund warrant in the amount of $15, Page 6 of 8

7 Adjournment On a motion made by H. Sanderson and a second by P. Mokrzecki, the Board unanimously voted to adjourn the meeting at 11:23 a.m. Respectfully submitted, Dale C. Kowacki, Executive Director Sandra A. Hanks, Chair Herbert L. Sanderson Jr., Vice-Chair David R. Gendron, Board Member Mary A. Stokarski, Board Member Paul J. Mokrzecki, Board Member Page 7 of

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