Retirement Benefits Advisory
Committee
DRAFT Minutes of meeting
Tuesday
July 20, 2010
Meeting
called to order at 7:00pm
Members Present:
Howard
Lasser, Michael Matson, David Scribner, Jay Wahlberg
Also attending from the firm of
Hooker & Holcombe, Inc.:
Richard S. Sych, Senior Vice
President Consulting Actuary
65
La Salle Road
West
Hartford,
CT 06107-2397
P: (860) 521-8400
E: Rsych@hhconsultants.com
Meeting
called to order at 7:00pm
Minutes
of meeting on June 17, 2010 were approved as amended.
Richard
Sych presented information on the actuarial estimates for the town
(presentation attached).
There
was discussion on sources of data and assumptions used in determining
estimates.
Key items of note:
- Data
is provided from the town controller, school finance director and
investment trustee.
- Assumptions
as noted in the presentation:
- Investment
return 7.5% - noted this was a moderate assumption of return compared to
experience of our and other portfolios Mr. Sych has seen.
- Catch
up (unfunded expense) is amortized over 15 years – noted this was
reasonable time frame.
- Salary
cost inflation, including steps is 5% - noted this could be subject to
review and revision based on experience.
- We
noted that the calculation could significantly vary based on recent
investment results, discussion ensued on various techniques and
alternatives, such as averaging of asset valuation or projected unit
credit method, intended to smooth the calculation of the contribution.
- Calculation does not include
formula for Volunteer Firemen. Jay
will follow up with determining where this is funded from
David
Scribner left the meeting at approximately 7:20 pm.
Meeting
adjourned 8:25pm
Respectfully,
Howard
Lasser