MINUTES OF MEETING
STATE EMPLOYEE RETIREMENT COMMISSION
November 17, 2010
Peter R. Blum, Chairman
Absent - Richard Cosgrove
Helen Kemp, Assistant Director, Retirement Services Division
Katie Balut, Supervisor, CMERS Unit, Retirement Services Division
Philip Bonanno, Buck Consultants
Janet Cranna, Buck Consultants
Andrew Zmich, Buck Consultants
Sean Smith, Buck Consultants
The meeting began at approximately 2:08 p.m.
Mr. Bonanno began by presenting the highlights of the June 30, 2010 draft report for the Connecticut Municipal Employees retirement system (CMERS). He gave an overview of its findings and conclusions. Concerning the fund assets, Mr. Bonanno stated that market conditions during the past few years were very challenging and the fund was still adversely affected. He noted that recent significant investment losses had resulted in depletion of the stabilization reserve and the creation of an unfunded actuarial accrued liability. The unfunded liability will be funded over a closed 30-year level dollar amortization basis.
With regard to the CMERS draft valuation, there will be some changes in some of the wording used - for example - "service contribution" will be changed to "total employer cost".
Following lengthy and detailed discussion concerning contributions and asset valuation methods, Mr. Poulin made the following motion: that the subcommittee accept the recommendations of the actuary and in turn recommend to the Retirement Commission that for fiscal year 2011-2012, the total contribution rate for General Employees with Social Security be set at 11.56%; the total contribution rate for General Employees without Social Security be set at 11.40%; the total contribution rate for Police/Fire Employees with Social Security be set at 16.37%; the total contribution rate for Police/Fire Employees without Social Security be set at 15.30%. Mr. Baus seconded the motion. Unanimous decision. The MERS' administrative fee is kept at $100 per employee/retiree
Mr. Baus moved; seconded by Mr. Poulin that the subcommittee recommend to the Retirement Commission that for fiscal year 2011-2012 to keep the Police & Fire administrative fee at $40 per employee/retiree and that New Britain would be required to contribute 0.79% of payroll in addition to the administrative fee. Unanimous decision.
In light of the fact that it appears an additional contribution increase is likely for fiscal year 212-2013, Buck will draft and send the employer contribution letter out at the end of December and apprise MERS employers of the likelihood of this event.
The meeting adjourned at 3:15 p.m.
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