FRANKLIN REGIONAL RETIREMENT SYSTEM
BOARD MEETING MINUTES
November 30, 2011
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 8:02AM by Board Chair, Sandra Hanks with Board Members David Gendron, Herbert Sanderson, and Paul Mokrzecki present. Also present wereExecutive Director Dale Kowacki, Assistant Director Susan Bobe, and Investment Advisor Greg McNeillie.
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.
Review and Acceptance of Meeting Minutes
On a motion made by D. Gendron and second by H. Sanderson, the Board voted unanimously to approve the minutes of the regular meeting held on October 26, 2011.
Payroll, Refunds, Transfers and Bills Warrants
On a motion made byH. Sandersonand second by D. Gendron, the Board voted unanimously to approve the warrants as follows:
Retirees Payroll $519,076.45
Refunds 68,793.46
Transfers 32,156.48
Bills 32,817.61
For a total of: $652,844.00
Paul Mokrzecki arrived at 8:05
Cash Transfer between Investments and bank
On a motion by D. Gendron and a second by P. Mokrzecki, the Board voted unanimously to transfer $100,000.00 from Rhumbline to TDBank to cover next month’s warrants.
New Members
On a motion made by D. Gendron and second by H. Sanderson, the Board votedunanimously to approve the new and existing members as follows:
New Members: UNIT DATE
Cavacco, Julia B. DER 11/23/2011
Fisher, Carl E. MHR 10/19/2011
Gilmore, Sharon L. MHR 11/03/2011
Leva, Nancy T. WTY 10/31/2011
Nowak, Kevin DER 10/24/2011
Sumner, Aleshia M. SND 10/31/2011
Wells, Curtis G. DER 10/19/2011
Existing Members – Different Units:
Dancer, Mary E. DER 08/31/2011
Rauch, Eileen M. MOH 10/17/2011
Disability Retirements:
On a motion by P. Mokrzecki and a second by D. Gendron the Board voted unanimously, on the advice of Board Counsel, to send the following disability to PERAC for review by medical panel, and to consider holding a hearing at a later date if one becomes necessary.
Catherine Kilgallen – employed as a custodian at Frontier Regional School for a period of 3 years, 7 months has applied for an accidental disability retirement due to an injury incurred while on the job. The application was reviewed by the board’s counsel, Michael Sacco who in reviewing the file, said “there were no issues discovered that would warrant an evidentiary hearing, although it is always in the Board’s discretion to conduct such a hearing if you wish to do so.” Michael recommended a PERAC medical panel review.
Buybacks and Makeups:
On a motion by D. Gendron and a second by P. Mokrzecki, the Board unanimously voted to accept the following buyback:
Kroll, Patricia - current member in Deerfield has requested a buyback of a refund taken 6/26/1998 from the State Board of Retirement for work between 9/8/1985 and 6/03/1995 in the amount of $16,410.20. Total creditable service allowed is 8 years, 7 months, 24 days for a cost of $27,734.18 if paid by December 31, 2011; otherwise interest will accrue as allowed by law.
Deaths:
The following deaths of FRRS retirees were noted:
Klement, Claire – passed away on September 28, 2011. She retired on 5/3/1983 from the Franklin County Treasurer’s Office with 11 years of service. She chose option B.
Gale, Myrtha – passed away on November 13, 2011. She is the survivor of David Gale, a 1985 retiree from Orange.
General Business:
Retract membership for Thomas Scalzo
On a motion made by D. Gendron and second by H. Sanderson, the Board voted unanimously to rescind the membership of Thomas Scalzo, a certified teacher at Shutesbury Elementary working on a 50% contract, equating to 18.125 hours per week, which is less than FRRS’s 20 hour per week minimum.
New Supplemental Regulation regarding less than full time, contracted and certified teachers
The Board considered the following policy and asked that it be reviewed by the Board’s legal counsel before the Board takes any action.
“Any individual who meets the membership criteria for the Massachusetts Teachers Retirement System but is subject to a waiting period due to the part-time provision of their contract, is excluded from membership in the Franklin Regional Retirement System during the same six month waiting period.”
Quarterly Meeting with Investment Advisor, Greg McNeillie, Dahab Associates
The Board reviewed and discussed the quarterly results from September 30, 2011 as presented by Greg McNeillie. Also, Mr. McNeillie explained PRIT’s Private Equity investments and noted that the Board is already involved in this segment because it is 60% invested in PRIT’s general allocation, which includes Private Equity.
Proposals from Large Cap managers:
At its August 31, 2011 meeting, the Board voted to seek proposals from investment managers that provide active management of equities in the Large Cap segment. The Board asked Mr. McNeillie to conduct searches for “Value” managers, and “Growth” managers, and to bring to this meeting his recommendations to the Board.
Large Cap Growth: The Board selected the following three managers, from the pool of 46 that submitted proposals, to be interviewed in 45 minute intervals by the Board on January 11, 2012 starting at 8:30 am.
Atlanta Capital Management, Atlanta GA
Brown Investment Advisory, Baltimore MD
Polen Capital Management, Boca Raton FL
Large Cap Value: The Board selected the following four managers, from the pool of 50 that submitted proposals, to be interviewed in 45 minute intervals by the Board on January 18, 2012 starting at 8:30 am.
Cornerstone Investment Partners, Atlanta GA
Herndon Capital management, Atlanta GA
Stewart Capital advisors, Indiana PA
O’Shaughnessy Asset Management, Stamford CT
Staff Evaluations
In consideration of the positive staff evaluations, but tempered by the Board’s awareness of the effect of the weak economy on the local towns’ finances . . .
On a motion by H. Sanderson and a second by D. Gendron, the Board voted unanimously to award a 1.47% merit increase to all staff effective January 1, 2012.
Board Meeting Schedule for 2012
The members of the Board were in agreement to continue the regular monthly meeting schedule of the last Wednesday of each month, at 8:00 a.m., beginning January 2012, with the exception of December 19, 2012.
Wording of policy for Workers Compensation settlement percentage
On a motion made byH. Sanderson and a second by P. Mokrzecki, the Board unanimously voted to set policy as follows:
“When the Board grants its legal counsel the authority to negotiate with a member’s legal counsel with respect to lump sum settlement in worker’s compensation claims involving members who have retired for either ordinary or accidental disability, the Board requests its legal counsel resolve such claims for not less than a 20% allocation to the Board, and to confer with the Board before agreeing to accept less than 20%.”
Adjournment
On a motion made byD. Gendron and a second by P. Mokrzecki, the Board unanimously voted to adjourn the meeting at 10:40a.m.
Respectfully submitted,
______
Dale C. Kowacki, Executive Director
______
Sandra A. Hanks, Chair Herbert L. Sanderson Jr., Vice-Chair
______absent______
David R. Gendron, Board Member Mary A. Stokarski, Board Member
______
Paul J. Mokrzecki, Board Member
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Board Meeting Minutes – November 30, 2011