City of Pawtucket Pensions and OPEB Obligations Ad Hoc Committee
Minutes
Meeting 02/23/12
NEXT MEETING: THURSDAY, MARCH 8, 2012, 10:00 AM
· The meeting began at 10:06 AM.
· Members in Attendance: Ernest Almonte, David Moran, Mark Boisclair, Robert Neill Jr., Peder Schaefer, Susanne Greschner, Gary Sasse, John Galvin, Rosalie DaRosa, Ronald Wunschel
· Advising Members in Attendance: Mayor Donald R. Grebien, Tony Pires, Acting Director of Administration, Frank J. Milos, Jr., City Solicitor, and Debra McDole.
· Mayor Donald R. Grebien Grebien started the meeting thanking the volunteers for their participation. The Mayor Donald R. Grebien reaffirmed the purpose of the committee to help assess and explore viable alternatives to the current status of our locally administered Public Safety Pension Plan and the Other Post Employee Benefits City wide and the two subject’s unfunded liability.
· Mr. Tony Pires, Acting Director of Administration read a letter from Robert Neill, provided by the Pawtucket Firefighters Local 1261 and Mark Boisclair, President of FOP Lodge 4 which expressed that their attendance was for informational purposes only and that attendance from any retired policeman/firefighter does not constitute an agreement regarding proposals submitted by the committee. Also, they expressed in their letter that any proposed changes to Pensions or OPEB benefits should take place during contract negotiations with the City’s negotiating team and not with this Ad Hoc Committee.
· Mr. Tony Pires, Acting Director of Administration also read a letter from Mr. William A. Karalis and Mr. Kenneth Noiseux, retired police and firefighters respectfully, noting that the Pawtucket Police and Fire retirees are individuals and not an organized group and cannot be represented by any one committee or person. With that in mind they have respectfully declined membership to the Ad Hoc Committee.
· Mr. Ernest Almonte then presided over the meeting. He expressed what he stood for as he noted on his business card, Integrity, Reliability, Independence and Accountability. His theme is Truth with data, Transparency with solutions and Transformation of advice with progress. He noted that the summary of findings to the Mayor will be how we define success with our role being to access and explore, review and provide and end with remedial actions. Productive options will lay the foundation to restore government that benefits a vibrant city. Mr. Almonte stressed that the conclusion must be numbers that will work and be equitable to all involved.
· Mr. Almonte then asked everyone on the Committee to introduce themselves.
· Mr. Almonte noted that this endeavor will be a shared sacrifice to all included.
· Mr. Almonte reviewed the notebooks contents which included the latest Pension and OPEB Actuarial Reports, Police and Fire contracts and the City’s 5 Year Plan.
· He reviewed the latest Auditor General’s Report which shows the City of Pawtucket Public Safety Pensions at risk with a 29.6% funded liability and a $130,392,959 unfunded liability. He noted the ARC (Actuaries Recommended Contribution) of the City being at a level of 97%. Mr. Wunschel noted that the City budgets and provides 100%; however the actuary reports restate ARC’s in their next reports which cause the difference (Note the City is not in a position currently to provide an increased ARC contribution over budget due to new actuary reports.
· The assumed rate of return for the City Plan is 7.875% while the State believes 7.50% should be the assumption. Mr. Almonte believes it should be less.
· Mr. Sasse left the meeting at 10:30.
· He then explained his approach to see and solve the problem. He sees the unfunded plan in the middle of a circle with problem solutions outside the circle which address bond rating agencies, taxpayers, businesses, retirees, workers in City including municipal, police and fire, citizens, vendors, Mayor Donald R. Grebien, City Council, State, and creditors.
· He asked Ron Wunschel to invite the City’s Actuary for the next meeting.
· He explained his thought on the process ahead being labeled as PROACT:
P – Define problem
R – Define repercussions
O – Look to opportunities
A – Seek alternatives
C – Define consequences
T – Look at tradeoffs
· He suggested meeting on March 8th at the same time in order for everyone to absorb the information provided to them in the notebooks and then have a total of six meeting consecutively on Thursdays and ending April 5th. Mr. Almonte then asked if there were any questions.
v Mr. Bob Neil asked if the General Assembly has any plans for the Non Mers System of Plans. He noted they are studying similar situations at this time.
v Mr. Peder Schaefer asked if there were any planned presenters. Mr. Almonte said he planned to have someone at one of the meetings.
v Mr. Lou Soares expressed concern over the six weeks of meeting being too short. Mr. Almonte assured Mr. Soares that he felt it could be accomplished and if not he would expand the time frame.
v Councilor Wildenhain thanked Mr. Almonte for chairing the committee and thanked the members for their concerns and time. He noted we must keep the taxpayers in mind during the decision/recommendation process.
· Mr. Almonte adjourned the meeting at 11:45 AM and thanked everyone for coming.
Respectfully submitted,
Ronald L. Wunschel Debra A. McDole
Finance Department Finance Secretary