Board of Public Works Retirement System Trustees

BOARD OF TRUSTEES Division of Public Works Retirement System Meeting Minutes October 28, 2014 A meeting of the Board of Trustees, Public Works Retirement System was held at 11:30 a.m. on Tuesday, October 28, 2014 in the Large Conference Room located at 11 Riverside Street. Chairman, Frank Anderson presided. Trustees Present: Frank Anderson, Mayoral Appointee Paul G. Bergeron, BPW Commissioner Representative David Deane, Aldermanic Liaison Ben Bausha, Employee Member David Essensa, Employee Member Trustees Absent: None Others in Attendance: David Fredette, City Treasurer Mary Woods, Administrative Assistant Expected Visitors: RBC Wealth Management was conferenced into the meeting for a general discussion of our pension plan design. It was stated by Mr. Anderson that this call is part of their annual fee. Mr. Eric Stubbs was conferenced in with Mr. Enrique Jaen. Mr. Anderson proposed the question to Mr. Stubbs that currently our plan allows for retirement benefit payment of last 12 months prior to an employees retirement. How are most benefit payments calculated? Mr. Stubbs commented that he will answer our question and give us an overall of the Portfolio Review which was handed out. Overall, there has been normal fluctuation. Two major goals, to increase bond portfolio which will continue on the path of higher yielding and for next meeting they will start putting together plans for 2015. Question on “Plan Design” was proposed by Mr. Deane and if RBC has looked at our plan. Mr. Stubbs explained that “in general” we are keeping with others in municipalities. Regarding the question on our plan design, Mr. Stubbs responded that our plan is based on salary which is better than plans based on compensation. Single most important strategy is keeping defined benefits. Mr. Deane wanted to know if we can legally move the time frame of 1 year to 3-5yrs in a position prior to retirement. Mr. Stubbs responded that five years is typical, three years is average. We will have to have the same rules for everyone. Mr. Fredette wants to know what we can do to prevent employees from having to increase their contributions. He is also concerned about the “Annuity Option” and what needs to be looked at in the future. Mr. Stubbs said he can provide us an analysis of some of the Page 1 of 3 options at our next meeting. Regarding cost of living adjustments, Mr. Anderson wants to know if we can offer a cost of living adjustment to a specific class of employees. Mr. Stubbs said he did not think it was a possibility. Maybe a health stipend could be given. Mr. Anderson also wanted to know about contributions of new employees to the health of the plan. Mr. Essensa wanted to know how our plan stands. Mr. Stubbs said that we are in the above average category by a few points at this time. Minutes of the Meeting: The minutes of the September 2, 2014 meeting were presented for review and acceptance. MOTION BY: Trustee, Paul Bergeron moved to accept, place on file, and approve the minutes of the September 2, 2014. SECONDED BY: Trustee, David Essensa MOTION CARRIED: Unanimously Personnel: The retirement of Mr. Mario Leclerc was presented to the Trustees effective September 24, 2014, after 10yrs. of service. He worked for the Wastewater Department. MOTION BY: Trustee, David Deane moved to approve the retirement calculation for Mr. Leclerc, with the selection of the Life Annuity Option. SECONDED BY: Trustee, David Essensa MOTION CARRIED: Unanimously Old Business: None New Business: Approval of the current disbursement of funds for the period of August 1, 2014, thru August 31, 2014 in the amount of $211,770.43 was presented to the Board. The Trustees reviewed the detail. MOTION BY: Trustee, Frank Anderson moved to approve the current disbursement of funds for the period of August 1, 2014, thru August 31, 2014 in the amount of $211,770.43. SECONDED BY: Trustee, David Deane MOTION CARRIED: Unanimously Approval of the current disbursement of funds for the period of September 1, 2014, thru September 30, 2014 in the amount of $269,612.61 was presented to the Board. The Trustees reviewed the detail. Page 2 of 3 MOTION BY: Trustee, Frank Anderson moved to approve the current disbursement of funds for the period of September 1, 2014, thru September 30, 2014 in the amount of $269,612.61. SECONDED BY: Trustee, David Essensa MOTION CARRIED: Unanimously Period for Public Comment: None Items by the Trustees: Question was raised by Alderman David Deane on what is the definition of “remuneration”. Meaning, what happens if you return to work (after retirement) for DPW, would you have to return your collected monies. Mr. Deane thinks that the monies should be returned. His opinion is that you can start your years of service again but if you don’t defer your pension, you should have to pay the monies back. Discussion on what the benefit of returning to work after retiring means to your pension. Mr. Deane thinks that you should have to serve in that new position longer than 12 months which is currently in the ordinance to bump up your pension. Suggested by both Mr. Deane & Mr. Anderson that there should be a 3-5 year average time in that new position for the health of the pension plan. Mr. Essensa sees “unintended consequences” where people may take a position only to increase their pension before they retire. Is there short term abuse? Question will be raised to RBC Wealth Management as well as Attorney Clark in the City Legal Department. There was a question raised by Mr. Anderson, he wants to know if there is still a June 30th actuary being generated. Mr. Fredette confirmed that there was. Mr. Fredette commented that the Pension S/W is being eliminated. There needs to be a new system identified or it needs to be farmed out (find a new company). Currently being done through the “Admins System” but that will be phased out. Calculations are done manually by Mr. Fredette’s Office and checks handled by Payroll. Mr. Anderson says it should be another question for RBC Wealth Management. Mr. Essensa wanted to point out that he does not know of any employees that have been able to take advantage of the salary increase of one year before retirement. He doesn’t see that it is a real issue yet. Next meeting is set for Tuesday, December 2, 2014. MOTION TO ADJOURN: Trustee, Frank Anderson moved to adjourn at 12:37 pm. SECONDED BY: Trustee, David Deane MOTION CARRIED: Unanimously Minutes Transcribed by: Mary Woods Page 3 of 3