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MINUTES OF MEETING
HINGHAM CONTRIBUTORY RETIREMENT BOARD
August 25, 2005

- MINUTES OF MEETING -
HINGHAM CONTRIBUTORY RETIREMENT BOARD
August 25, 2005

A regular meeting of the Town of Hingham Contributory Retirement Board was held in the Town Hall on Thursday, August 25, 2005. Thomas P. Hall, Jean M. Montgomery and Peter J. Blampied were present. Ted C. Alexiades and Eileen A. McCracken were absent. The meeting was called to order by Thomas P. Hall at 3:30 P.M.

B. Michael Reardon, Senior Client Service Officer from the PRIM Board was present to put forward Hingham’s performance review in the PRIT Fund as of July 31, 2005. The PRIT Fund is a $37.5 billion dollar fund in which the Hingham Retirement System is fully invested. A TUCS Report for period ending June 30, 2005 shows that the PRIT “Core” Fund ranks in the 5th percentile relative to public pension funds. PRIT Core annual return since inception (1/1/85) is 11.05%. Mr. Reardon concluded his presentation to the board at approximately 4:10 P.M.

A motion was made by Peter J. Blampied and seconded by Jean M. Montgomery to approve the minutes of the July 21, 2005 board meeting.
AYE 3-0. It was unanimously voted.

A motion was made by Jean M. Montgomery and seconded by Peter J. Blampied to approve the following retirement allowances and expenses:

AYE 3-0. It was unanimously voted.

A motion was made by Peter J. Blampied and seconded by Jean M. Montgomery to accept the following Applications for Membership:

AYE 3-0. It was unanimously voted.

A motion was made by Jean M. Montgomery and seconded by Peter J. Blampied to accept the following Applications for Retirement:

AYE 3-0. It was unanimously voted.

There were no Applications for Withdrawal and/or Transfer of Deductions.

A motion was made by Jean M. Montgomery and seconded by Peter J. Blampied to accept the following Application for Buybacks/Make-ups:

AYE 3-0. It was unanimously voted.

The Cash Flow Report through August 31, 2005 was discussed.

An Addendum to the Supplemental Rules and Regulations was presented to the board for their review and approval. Rules and regulations yet to be approved are as follows:

• Employees regularly scheduled to work twenty (20) or more hours per week, whose salaries are funded by a Federal/State Grant, shall join the Hingham Contributory Retirement System. The respective town/school department shall reimburse the Hingham Retirement System 9% & 2% (on earnings over $30,000) of that employees’ annual salary

• In addition, Hingham School Department employees whose employment requires them to work only 10 months (September 1 – June 30), shall receive one month of creditable service for each full month the employee received regular compensation, with 10 months being the equivalent of one year of creditable service. Said employees shall be granted one (1) full year of service credit if they return to that position the following September. They shall be granted credit only for the months worked if they do not return after summer break.

• Creditable Service buyback payments must commence within 30 days of the date of acceptance by the board. Regular interest (1/2 of the actuarial assumed interest rate) will accrue on any principal balance remaining on December 31st of each calendar year.

• When purchasing prior part-time service, if wage and/or salary documentation cannot be obtained, a W-2 form shall be supplied by the applicant. If the applicant cannot supply a W-2 form, he/she can request a hearing before the retirement board.

• Upon written request, and proper documentation of prior service, reserve or permanent-intermittent police officers who were on the respective list, eligible for assignment to duty and subsequently appointed to the Hingham Police Department as a permanent full time employee, shall be credited as full-time service up to a maximum of five (5) years without repayment to the system in accordance with M.G.L. c. 32 §4(2)(b).

• Upon written request, and proper documentation of prior service, permanent-intermittent or call firefighters who were on the respective list, eligible for assignment to duty and subsequently appointed to the Hingham Fire Department as a permanent full time employee, may purchase as full-time service up to a maximum of five (5) years in accordance with M.G.L. c. 32 §4(2)(b).

• Any member who is a veteran must, within one hundred and eighty (180) days of being notified by the Hingham Retirement of his/her eligibility to purchase past service rendered in the armed forces of the United States, make application to purchase said service with the Board. Upon making such application, the member may purchase his/her past military service by paying an amount equal to ten percent (10%) of the regular annual compensation of the member when the member first entered their retirement system subject to provisions of M.G.L. c. 32, for each year the member wishes to purchase, not to exceed a maximum of four (4) years of service.

• Military service may be purchased one of three ways:

1. Lump sum payment.
2. Three equal payments distributed over the three (3) consecutive months.
3. Via payroll deductions paid over a period not to exceed five (5) years.

• Veterans with a legitimate hardship in purchasing their military time through the above methods can request a hearing before the Retirement Board.

• Military service buyback payments must commence within 30 days of the date of acceptance by the board. Regular interest (1/2 of the actuarial assumed interest rate) will accrue on any principal balance remaining on December 31st of each calendar year.

• If any member is laid-off or his/her position is eliminated due to budgetary constraints, the buyback period will be suspended, and in the event that the member is rehired or resumes employment with the Town of Hingham and is then again eligible to contribute to the System, he/she must resume the installment schedule in effect prior to the layoff or termination. If the member voluntarily leaves employment with the Town of Hingham or is terminated for cause, the buyback period will not be suspended, and the Board will grant creditable service on a pro-rated basis consistent with the total amount due on the buyback and the amount remitted to the Board prior to the termination of employment.

• In the event that a member transfers to another retirement system prior to the completion of the installment plan, the Board will determine the amount of service purchased based on the payments received, and accept liability for said service consistent with the provisions of M.G.L. c. 32, §3(8)(c).

The board agreed to postpone their vote until September’s board meeting.

The Arlington Retirement Board is filing legislation (Senate Bill 319) in an effort to have Teacher Aides and Teacher Assistant’s enroll directly into the Massachusetts Teachers Retirement System in lieu of their local retirement system. Retirement Administrator, Richard Greco is asking for our support of this legislation as well as our permission to place our board on his list of supporters. The board agreed to postpone discussion on this topic until September’s board meeting.

The Monthly Account Statement and PRIT Fund performance for the period ending July 31, 2005 was discussed. The PRIT Core Fund returned 2.54% for the month of July, 2.53% fiscal year-to-date and 5.63% calendar year-to-date.

Eileen A. McCracken joined the meeting at 4:35 P.M.

A motion was made by Peter J. Blampied and seconded by Jean M. Montgomery to adjourn the meeting at 4:35 P.M.
AYE 3-0. It was unanimously voted.

The next regular Retirement Board meeting will be held on Thursday, September 22, 2005.

Ted C. Alexiades, Chairman

Thomas P. Hall

Peter J. Blampied

Eileen A. McCracken

Jean M. Montgomery