MINUTES OF THE SPRINGFIELD RETIREMENT BOARD MEETING
HELD ON, MAY 21, 2014 at 1:00P.M.

PRESENT: Thomas Scanlon, Robert Moynihan, Haskell Kennedy, Patrick Burns, Philip Mantoni, Executive Director, Anne Leduc, Attorney Alfredo ViVenzio, Kathy Pedersen, Director of Water and Sewer Commission, Comptroller, Anthony Basile, W & S Commission, T.J. Plante, Springfield CAFO, Jennifer Winkler, Springfield Finance Department, Anthony Soto and Patrick Roach, School Finance Department. P.E.R.A.C. Executive Director, Joseph Connarton and Actuary, James Lamenzo.

Agenda Item #1-Actuarial Valuation
Mr. Connarton addressed the Board along with James Lamenzo on the results of the January 1, 2014 Actuarial Valuation. He stated that P.E.R.A.C. has serious concerns regarding the long term sustainability of the Springfield Retirement System . They talked about the Plan’s liabilities and assets. He explained the revised actuarial assumptions, the ROR is now going to be 7.875% instead of the 8.125%, the funding end date is now 2035 instead of 2037, and however the salary increase assumptions will remain at 4%. Completing the amortization of the UAL by FY 2035 allows the system some flexibility in the event of a market downturn. Now that this system has completely recognized the 2008 market losses and recognizing the additional liability of the COLA base increase from 12 thousand to 13 thousand the impact of market gains in 2012 and 2013 did not entirely offset the returns.

Questions were asked by Anthony Basile, T.J. Plante and Board Members, after deliberations, the Chair stated that he agrees with the City and other Units that too high of an increase now would impact the City. The Chair recommended the adoption of Alternative Schedule 4 showing a total cost increase of 6% to 8% until FY34 and that the FY 16, 17, 18, 19 AND 20 appropriation percentages of 6,6,6, 8, 8%’s should be locked in for the 5 year period.

Motion made by Robert Moynihan and seconded by Haskell Kennedy to adopt Schedule 4 and to lock in the 6, 6, 6, 8, 8%’s for the next 5 fiscal years. Voted Unanimously.

Agenda Item #2- Superannuations
Motion made by Philip Mantoni, seconded by Robert Moynihan to accept the superannuation retirement applications from: School Custodian, Richard Leonard with 38 years and 3 months as of, 5/14/14.
Admin. Asst./Fire Dept., Faith Pippin with 27 years and 4 months as of, 5/16/14
Voted unanimously

Final disability approval from P.E.R.A.C. for the following:
Firefighter, Anthony Willis, as of 5/16/14
Firefighter, Bruce Hawley, as of 5/13/14
Building Admin., Municipal Group Maintenance Coordinator, Walter Pinckney as of 5/19/14

Agenda Item #3-Warrant
Motion made by Robert Moynihan and seconded by Patrick Burns to allow the payment of warrant #19 in the amount of $3,000.00 for postage.

Minutes of the 5/21/14 meeting continued
Agenda Item #4-Crescendo IV Fund Liquidation
The Director informed the Board that Crescendo Ventures is asking if we would like to liquidate our portfolio. The balance of our position in the fund is $475,799.00. The Director reached out to P.E.R.A.C. for guidance in making this decision but was unable to get an answer prior to the deadline. The Director stated that nearly half a million dollars was a sizable asset to sell at a price that could be discounted. Without further consideration a motion was made by Philip Mantoni and seconded by Haskell Kennedy to inform Crescendo Ventures that we are not interested in selling. Voted unanimously.