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MINUTES OF MEETING
HINGHAM CONTRIBUTORY RETIREMENT BOARD
September 22, 2005

- MINUTES OF MEETING -
HINGHAM CONTRIBUTORY RETIREMENT BOARD
September 22, 2005

A regular meeting of the Town of Hingham Contributory Retirement Board was held in the Town Hall on Thursday, September 22, 2005. Ted C. Alexiades, Thomas P. Hall, Jean M. Montgomery and Eileen McCracken were present. Peter J. Blampied was absent. The meeting was called to order by Ted C. Alexiades at 3:30 P.M.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to approve the minutes of the August 25, 2005 board meeting.
AYE 4-0. It was unanimously voted.

A motion was made by Eileen A. McCracken and seconded by Jean M. Montgomery to approve the following retirement allowances and expenses:

AYE 4-0. It was unanimously voted.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to accept the following Applications for Membership:

AYE 4-0. It was unanimously voted.

A motion was made by Jean M. Montgomery and seconded by Eileen A. McCracken to accept the following Application for Retirement:

A motion was made by Eileen A. McCracken and seconded by Thomas P. Hall to accept the following Application for Retirement:

AYE 4-0. It was unanimously voted.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to accept the following Applications for Withdrawal and/or Transfer of Deductions:

AYE 4-0. It was unanimously voted.

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

AYE 4-0. It was unanimously voted.

The Cash Flow Report through September 30, 2005 was discussed.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to submit a proposal to the Hingham Municipal Light Plant concerning the Hingham Municipal Light Plant Employees’ Trust Fund. According to town counsel, the Light Plant has no legal authority to hold this trust fund and that these funds should be turned to the Town Treasurer. Our letter dated September 26, 2005 addressed to Light Plant Manager John G. Tzimorangas states that retirement board members have agreed to the following proposal: should the Light Plant transfer their entire account balance ($3,288,023 as of January 1, 2004) in the pension reserve to the Hingham Retirement System, the Light Department would be about 115% funded and would remain overfunded until 2018. No contributions to the pension reserve fund would therefore be required until 2018. Our actuary will set up a tracking mechanism for excess contributions and credit the Light Plant with the interest based on the asset returns of the System.
AYE 4-0. It was unanimously voted.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to approve the travel authorization request by Nancy Hutt to attend the Fall MACRS Conference on October 17, 2005 in Springfield, MA.
AYE 4-0. It was unanimously voted.

A motion was made by Eileen A. McCracken and seconded by Thomas P. Hall to approve the “draft” Financial Statements for the year ending December 31, 2004 and ask O’Connor & Drew to issue them in final form.
AYE 4-0. It was unanimously voted.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to approve “amended” Supplemental Rules and Regulations. Supplemental Rules and Regulations for the Hingham Contributory Retirement System are as follows:

HINGHAM CONTRIBUTORY RETIREMENT SYSTEM
SUPPLEMENTAL
RULES AND REGULATIONS

Membership
The following regulation is applicable to and mandatory for all current and future employees of the Town of Hingham, Hingham Municipal Light Plant, Hingham Housing Authority and the Hingham School Department, excluding School Department employees who are eligible for membership in the Massachusetts Teacher’s Retirement System:

• Employees regularly scheduled to work twenty (20) or more hours per week shall join the Hingham Contributory retirement System.
• Employees working part-time and/or less than twenty (20) hours per week are not eligible to join the Hingham Contributory Retirement System.
• Part-time seasonal, part-time temporary and/or part-time intermittent employees are not eligible for membership in the Hingham Contributory Retirement System.
• Any active or inactive member who becomes a temporary, intermittent, or seasonal employee shall continue to be a member of the Retirement System.
• Membership date will be based upon commencement of regularly scheduled twenty (20) hours or more of service to the member units.
• 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.

Creditable Service
The following regulation is applicable to and mandatory for all current and future employees of the Town of Hingham, Hingham Municipal Light Plant, Hingham Housing Authority and the Hingham School Department, excluding School Department employees who are eligible for membership in the Massachusetts Teacher’s Retirement System:

• All full-time/part-time employees having been regularly scheduled and worked twenty (20) or more hours per week will receive one month of
Creditable service for each full calendar month in which the employee is receiving regular compensation for said service.
• 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 Buybacks/Make-Ups/Re-Deposits
The following regulation is applicable to and mandatory for all current and future employees of the Town of Hingham, Hingham Municipal Light Plant, Hingham Housing Authority and the Hingham School Department, excluding School Department employees who are eligible for membership in the Massachusetts Teacher’s Retirement System:

• Creditable service may be purchased one of three ways:

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

• 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.
• Creditable service for the purposes of buybacks will be calculated based upon the following: (per calendar year)
Less than one (1) month - No creditable service
One (1) month to eleven (11) months - Month for month
Twelve (12) months - One (1) year
One (1) year of credit for ten (10) months of service may only be granted for school employees whose work schedule is the academic school 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.
• For the purpose of calculating buyback “months”, the Hingham Contributory Retirement System will review the period of part-time service and will allow a month for each calendar month wherein an average of twenty (20) hours or more per week of service was provided to the member unit. No partial month creditable service will be granted.
• For the purpose of calculating buyback “months” for a member whose work schedule is the academic school year, the Hingham Contributory Retirement System will pro-rate full months of service using the number of full months of actual service as determined above, divided by the ten (10) months of the academic school year. The quotient will then be multiplied by twelve (12) to determine the number of months of creditable service to be allowed under the buyback.
• Employees may buyback their three (3) month probation period in accordance with and subject to, applicable laws and regulations.
• 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).

Military Service Buyback
The following regulation is applicable to and mandatory for all current and future employees of the Town of Hingham, Hingham Municipal Light Plant, Hingham Housing Authority and the Hingham School Department, excluding School Department employees who are eligible for membership in the Massachusetts Teacher’s Retirement System:

• Employees who qualify as a “veteran” under G.L. c. 32, §4(1)(h) can purchase up to four (4) years of active service in the Armed Forces of the United States which will be added to their creditable service as a member of the retirement system.
• 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).

AYE 4-0. It was unanimously voted.

A motion was made by Thomas P. Hall and seconded by Jean M. Montgomery to support Senate Bill 319 proposed by the Arlington Retirement Board. The legislation would admit teacher assistants/aides/paraprofessionals directly into the Massachusetts Teachers’ Retirement System.
AYE 4-0. It was unanimously voted.

The Monthly Account Statement and PRIT Fund performance for the period ending August 31, 2005 was discussed. The PRIT Core Fund returned 0.29% for the month of August, 2.83% fiscal year-to-date and 5.94% calendar year-to-date.

A motion was made by Thomas P. Hall and seconded by Eileen A. McCracken to establish policy regarding mileage reimbursement. The Hingham Contributory Retirement Board will pay the same mileage rate as the town (currently $0.35/mile).
AYE 4-0. It was unanimously voted.

A motion was made by Eileen A. McCracken and seconded by Thomas P. Hall to adjourn the meeting at 4:35 P.M.
AYE 4-0. It was unanimously voted.

The next regular Retirement Board meeting will be held on Thursday, October 27, 2005.

Ted C. Alexiades, Chairman

Thomas P. Hall

Peter J. Blampied

Eileen A. McCracken

Jean M. Montgomery