Gp-03 - Local 445 Board Meeting Minutes 0606

Minutes of theJoint Meeting of the Trustees of Local 4'45 Construction Divlsion Welfare, Pension and Annuity Funds held' June '8, 2006 nt the. Office of the Funds, Newburgh, New York

EmployeI' Irystec!i Rqss 1. Pepe

Union Inlst£cB, Douglas L. McCa.uley

Cindy Garlinghouse Also Present: Do-nald L, Supir, Co-Counsel David Kramer, Co-Counsel Milliman USA, Welfare Consultant , By: _ .Iames E. Conlon, Jr., f.S.A., MAAA

Milliman USA, 'Pension Consultant By;

- Roscoe Haynes, P.s .A . -

fund Office.

By:

Sharon Molinelli, Fund Administrator

Wachovia Securities, Inc., Investment Consultant By": 'Michael C, Chrys, 'Senior Vice President -Investmcnts

Moore Stephens, P,C" Accountants By:

. Prmlck M. Trombetta, C.P.A.

Alliance Bernstein Institutional Investments By: Kevin KIng, Director, Taft-Hartlng Group

Wright Investors' Service ' By: Kenneth H. Singer, Senior Vice President Amit S. Khandwala, Executive Vice President

HG-K Asset MEUUlgement, Inc. By: Martin f. Maddaloni, Jr., Managing Director' . . RlchardM. CUiIC, institutional Sales Associate , Gwttnl (All Three Ftm(l.~)

The Mectin~ was called to order at 1,0:10 am. by Douglas L. McCauley, who acted

.8S

Chairman.

GOVERNMENT EXHIBIT GP -3

J.

The Minutes of the Trustees' Meeting held on March 27, 2006 were discussed. Upon motion

duly made 'and seconded, the Trustees Approved the Minutes

of the

Trustees" Meeting held on March 27,

2006.

Mr. Chrys of Wachovia Securities Inc" which monitors the results of the four

A,

Investment Advisors. 'distributed to and reviewed with the Trustees three Analyses ofInvestrnent

Performance through March 31,2006, one each for the Welfare, Pension and Annuity Funds. Each of the' three Analyses covered the last quarter, the year to date, as well as the one-year through five year periods prior to March 31, 2006.

Upon motion' duly made and seconded, the Trustees

unanimously . Acceptedfor filing the three Analyses ofInvestment Performance as ofMarch 31,.2006from the Investment Consultant, one each for the Welfare, Pension and Annutty Funds, .

B,

Mr, .Chrys introduced representatives from Alliance Bernstein Institutional

rnvestments, Wright In vestars' Service and HGK Asset MDJ1.Bge ment, Tno. who made prescntali0ns In connection with the Trustees" search for an international equities advisor. The Trustees reviewed

th e writ~~n materials di stributed by the three investment ad visorsand listened to thelrrepresen tau ves

discuss investment philosophy, past results, current clients, adherence to the AFl>CLQ Iaborfriendly guidelines and fees, In executive 'session,

Ofl:CT

discusslon, upon motion duly made and

seconded, 'the Trustees unanimously ' Selected Wright !J1VCS(Or!>" ' Service as the international equities advisor, and agreed to take 5 million dollars from Ark Asset 2

Management's equity assets in the Pension portfolio and transfer it (0 Wrtghi's ADR product as soon as possi ble. .

C..

Chairman McCauley rioted thnt it was lime-consuming for the

to hear, the various presentations. After' discussion. upo,n motion duly

fun Board of Trustees

made

and seconded. the '

Trustees Agreed [0 form a Committee of Two Union ' Trustees and 7\vo Employe;' Trustees '10 hear.presentatlons and 10 report back 10 the other Trustees with recommendations.

m.

Rc.viQw ofFlnngcllll RCDQ.f.taMr. Trombetta reviewed with the Trustees the financial reports for, the three Funds Cor the

Three month period ending Ma.rch 31,2006: Copies ofthe reports had previously been" mailed to the

Trustees. Upon motion duly made and seconded, the Trustees unanimously .Acceptedfor-jllf':lg the flnancial reports for the three month perlod ending March. 3 J.' 2006for the Welfare; Pension and Anrrulty Funds , p rep ar ed by tlu: Accountants.

IY.

.~Ifllre

Fund

Mr. Conlon reviewed with the Trustees the Annual Report of Financial Position for Fisca.l .

.

Year Ending December 31,2005: "'TIle Annual Report..hcd previously been mailed to' the Trustees: .

,

Mr. Conlon stated that the Welfure Fund was fully reserved and strongly capitalized. Upon motion. duly made and seconded, the,Trustees unenlrnously Acceptedforfiling the Annual Report ofFinancial Posltlonfor Fiscal , Year ending December 31, 2005.

3

,

l

V.

PensIon Fund

A.

Mr. Hnynes presented a schedule contalI'll ng two pension appli cations which hed. been

reviewed byand received prior approval from the office of the Consultant. The pension schedule, which wa.s previously. mailed to the Trust~eg) is annexed hereto as Exhlbit A. Upon motion duly made and seconded, tho Trustees unanimously

Approved and conflrmedand ral!(led the payment ofth« Pensions set forth in Exhibit ./A. "

Mr. Haynes noted that the Trustees had agreed. to a plan amendment on adm inistrative

B.

practice' authorizing the recovery of Pension overpayments in the discretion of tbe Fund Administrator and setting forth the procedures for such recovery. He presented the plan amendment

for signature and it was signed by the Chairman and·Co·Chairman. . ,

,

,

C.

,

Mr. Raynes advised the Trustees that he . . would review . the Actuarial Valuation as of

JanuaryI, 2006 with the Trustees at-the September Meeting. The Actuarial Valuatlonas of January 1,2006 had previously been mailed to the Trustees.

D.

Chairman McCau ley and Ms. Molinelli reportedto the Trustees [hat Ibey had received

proposals from Pension Consultants, including the Segal Company, Savasta & Company, Milliman USA•. Summit Actuarial Services. ,Inc., and Buck Consultants, After interviewing several of the

~pplying consultants, they recommendSummit Actuarial Services, Jnc.' to the Trustees to replace:

Milliman USA

8S

the Pension

COD5UltlUlt.

In executive session, upon motion duly made and

seconded, the Trustees unanimously.

Agreed 10 replaceMilliman USA with Summit Actuarial Services, Inc. 4

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._

.. _

._ - '-----'--- '- --

as Pension Consultant. terminating Milliman USA by December 31. 2006 and hiring Summit Actuarial Services, Inc., effective November J. 2006.

Mr. Haynes reviewed with the Trustees an Annuity Beneflts Report prepared by the Fund Office and approved by the Consultant for the period of March 3,2006 toJune 2, 2006. This report .

was previously mailed to the Trustees. · The report contains,the participant's name, type of benefit, . \

;.

arid amount of benefit paid. Upon motion duly -made and seconded, the .Trustces

Approved the Annuity Benefits Report for the period March 3, 2006 10 June 2. 2006 prepared by (he Fund Office and approved by 'he Co·nslJlta.'1l,

VII.

'

. . ]kwpIQy,or.,.J:uyr'm:iJt Stfltu3 Repod Ms. Molinelli 'd istributed to the: Trustees copies of an Employer Payment Status Report as ,

.

of June 7, 2006,rconsisting of three pnges, a one page delinquency report, ,report,

0

one page list 'o f audits

11

one. page late charges

due, and a one page list of late charge payments received. Mg.'

Molinelli reviewed tile list of delinquent employers with ~he Trustees. UpCJn motion duly made and seconded, the Trustees unanimously A cceptedfor flllng {he Employer Payment Status Report as of,'June 7,' 2006, a three page de lInql..Ie/JcY report;« late charges report, a list of audits due, and alist oj [ate charge payments received, all of one page.

vrn,

Fynd Office Report A.

Ms. Mofinelll reviewed the Fund Office Summary Pension Report with the Trustees.

5

The Pension Report for the period of January I through June 1, 2006 contained the number of .

.

Retirees and the total monthly amounts of pension c1:ecks to Retirees. The Pension Report hod

previously been mailed to the Trustees. Upon motion duly made and seconded. the Trustees Acceptedfor filing the Fund Office Summary Pension Report lor the period January J through June J, .20·06, '

8,

Ms. Molinelli reviewed the Fund Office Summary Welfare Report with the Trustees.

The Welfare Report for. the p'criod January I through

May 31, 2006 contained the amounts of

insurance premiums. claims and prescriptions paid, tbenumber of insured members and the number of COBRA participants: Thereport had previously been mailed (0 the Trustees. Upon motion duly

made !U1d seconded, the Trustees Acceptedfor flling the Fund Office Summary Welfare Report/or the period January 1 through May JJ, 2006.

C.

.Ms. Molinelli reviewed with the Trustees the report on Aetna payments covering the .

.

.

.

period of January 1 through May 31 , 2006. Upon motion duty made and seconded, the Trustees '

Acceptedfor fit ing the Fund Office. report on Aetna payments from

JanuaryI through May31, 2006.

D.

Ms. Molinelli reviewed with the Trustees the report on J\.1VP Select Care payments

frein) "Jaouary 1 through May 3 1,2006. The report hod previously been mailed 10 theTnistees. Upon

motion duly made and seconded, the Trustees Accepted for filing the Fund Office report on ]o.fVP Select Care payments from january 1 through May 31, 2006.

6

E,

Ms. Molinelli reported to the Trustees on

tl~c

'partic ipan t and the Fund Office

experience with the new Medicare Part D)'prescrij:>tion plan. Sbe noted that, thus far, the plan was working out well for both participants and the Fund Office,

,

F.

'

Chairman McCauley noted that Ms. Molinelli formerly held the title of
Administrator" 'pdo r to January 1, 20006. He said that he wantedto make it clear that Ms. Molinelli . '

.was nfficially the Fund Administrator and he asked the Trustees to confirm it. 'Upon motion duly , ' ,

'\

made and seconded, the Trustees unanimously

Approved the iute

IX.

of Fund Administratorfor Ms. Molinelli,

Report of Fund COUNIC)

A.

Mr. Snpir reported to the Trustees on ,th~ two cases in the five page list of mattersin

"Legal" 'dated June 8,2006. M{'. Sapir noted that Radar Enterprises, Inc, has ~de $293,667.15 in

set!:lt::mc~t-payments.' He said tbat the Actuary will be calculati

ng the withdrawai liabili ty for Rodar.

He added that RMA Truck Rental, Inc, has entered into a settlement ofits $ ~09JOOO delinquency nnd has paid over.$J4.000 to date. Upon motion duly made end seconded. the Trustees

Accepted the report of Legal Counsel,

B.

Mr. Sapir asked the Chairman and the fund Administrator concerning the status 0'£

the switch of~2,50 in contribution payments from the Welfare Fund to the Pension Fund. Both the Chatrmnn and the Fund Adrninlsrmror indicated that the Employer has mainly made the switch

without difficulty, but they would make sure all of the remaining employers complied with 'the .

"

request of tbe Trustees.

7

X.

. The date .of the I1t::XC Meeting.of the Trustees is 10:00 B..m.. . Monday. September J8,·2006.. . .

There being no further business to'come .before the Meeting, the some was ~Jn motion adjoumed at 1:05 p.rn.

InC~f

5 . . McCaulty

8

LOCAL 445 CONST RUCTION DrVISIOY~' PENSION FUND

l.'RUSTEES MEETING

Exhibit HAJJ

1QCAL 445 CQ.N~JRLJ,~TlON D1VJSlQN.....I.RUST~~TING

NAME QEBALQ IRAYlili AGE

MONTHLY A.MOCNT ~!,2;;6A:L CREDIT 27.9QiCONST 2.30/fRT 25.60 ' CO ~ cr'¢r~ , . ' .. '5.0% ' SURVtVOR' OPTION ~J,:ECTEDLRESTQRATrON

U2.

'r(PE OF RctI;REMENT EARi-J::. EFFECTIVE DATE 4/11012

.

NAME~ AGE 62 ' ,

TYP"b OF Rsrrn.EMENT ~CE EFFECflVE DATE 4/1/06

,

,

MONTIU...Y Alv10UNT $1.943.5,3 C~OIT ~~.4Q/¢QN$t;Z8IfRT~7,40 , CO CALLANAN IND ' 100% SURVIVOR OPTION RECTED/RESTORA TlON

.

ALL OF THE ABOVE FINDXNGS fIA VE BEEN VERIFIED ACTUAlUALLY

C Q1YSTRUCT)ON orVTSrON DE;C£ASED r£NSIQN ~IJ.S

NAME 5?ANJ( PAVELQCK RETIRED w.&2 . EXPIRED ·3/15/06

DATE OF AGE ~. . AGE j1

NAME KENNETIi~HAEaR RETfRED 1111193 EXPIRED 4/28/06

AGE

BrRTH~

p~NSrON AMT $l,386,.ill.

PENSION AMT $1,451:50

DATE O~ BIRTH 009/21 PENSION AMT $U.5;2,22·

6i

AGE 78

PENSION AMT .1.1.223.86