741 Colonel Ledyard Highway

Ledyard, Connecticut 06339

TOWN OF LEDYARD

Retirement Board

Meeting Minutes

Chairman

John Rodolico

Regular Meeting

Tuesday, December 17, 2024

10:00 AM

Council Chambers - Hybrid Format

CALL TO ORDER

The meeting was called to order by Chairman Rodolico at 10:00 a.m.

II.

ROLL CALL

Board Member William Thorne

Alternate Member Roger Codding

Board Member Roger Codding

Alternate Member Sharon Wadecki

Board Member Sharon Wadecki

Chairman John Rodolico

Present

Alternate Member John Rodolico

Alternate Member Minna DeGaetano

Also in attendance:

Naomi Rodriguez, Town Council Chairperson

Frederica Daniels, USI Actuaries was present via Zoom

Staff Present:

Mayor Fred Allyn III

Christine Dias, Human Resource Director

Matt Bonin, Finance Director

Ian Stammel, Assistant Finance Director

Christina Hostetler, Town Hall Assistant

Minna DeGaetano was appointed as a voting member.

III.

PRESENTATIONS

Frederica Daniels, USI Actuaries will be presenting the GASB Disclosure Report for the fiscal

year ending June 30, 2024.

Frederica Daniels, USI Actuaries started the meeting by stating that there were positive returns from

the last fiscal year leading to great improvements in the funded ratio of the plan and a slight

decrease in expenses over the year.

The net liability has improved significantly over the past two years.

The Town contributed $950,000 for the fiscal year. The minimum recommendation is approximately

7% - 7.25%. The contributions the Town put into the plan helps improve the investment

performance and dollar for dollar helps with the funded ratio and decreases the unfunded liabilities.

Approximately half of the plan's population consists of retirees. The inactive group is larger than the

active group.

The investment return was just over 9%, beating the expected return of 6.5%.

The Town is committed to funding the pension plan.

Years 2023/2024 showed a clear rebound from the losses in 2022.

For the measurement period ended June 30, 2024, the Plan recognized pension expense of

$707,436.

This year is unique in that the expense is about $700,000 and is very similar with the actuarially

determined contribution. In the future the GASB expense may be less than the actuarially

determined contribution because of the accumulated gains over the past few years. The takeaway

is that the report shows some years coming off loses to be deferred out and gains are starting to

take more effect.

Chairman Rodolico asked where the Town stands regarding the 88% status compared to other

Towns in the State, good, better or best? Ms. Daniels answered that the Town would be in the

"better" status, she explained that there are Towns that are at 100% ratio but very few of those

and added that the Town is definitely doing better than the State level. Ms. Daniels said on

average most Town's ratios are at a low to mid 80s level. Ms. Daniels said the Town is "right in

the middle of the pack, if not slightly ahead of the curve".

Ms. Daniels said at this time last year the Board voted to contribute $950,000, which is above

the minimum of $700.000 and a bit below the 1.1 million contributed in the past few years. She

then asked if the Board wanted to continue with the contribution of $950,000 for Fiscal year

25/26. Mr. Thorne suggested contributing $950,000 plus 3%. Mayor Allyn III said that there are

a few things on the new year fiscal year horizon that will need attention such as the Veterans

exemption which could possibly cost the Town half a million per year and the taxation issue that

comes up each year which may cost between $500,000 - $600,000. Chairman Rodolico asked

Mayor Allyn III when the Board needs to give the final figures. It was answered that the

department heads are working on the budgets now. Chairman Rodolico asked Christina

Hostetler, Town Hall Assistant to put an item on the January 21, 2025, agenda to discuss this

further. Ms. Wadecki asked Ms. Daniels if she had recommendations on the FY 25/26

contribution. Ms. Daniels said that if the budget allowed it would make sense to increase 3% on

the current contribution level.

Mr. Thorne asked Ms. Daniels if she was able to talk to her legal team regarding assisting the

Board with the Town Defined Benefit Plan update. She answered that she had and that they are

willing to carry undertake the plan restatement if the Board is interested. She said the process

usually entails adopting a plan with any amendments and recommended adopting any new

updates to date coming out of both the CARES Act and the Secure Act and Secure 2.0 Act. Ms.

Daniels said that currently the legal team is in the process of performing restatements for

prototype plans due on March 31, 2025, and would not be able start the Town's restatement until

early Spring. She added that from a legislative standpoint the Town has until 2029 to adopt the

recent law changes. Lastly Ms. Daniels said the approximate cost would be $12,000 - $15,000

for an individually designed plan.

IV.

REVIEW AND APPROVAL OF MINUTES

Motion to APPROVE Regular Meeting Minutes from November 19, 2024, as written.

Chairman Rodolico mentioned that the Board needs to find another member after Mr. Panosky's

resignation. Chairman Rodolico said he would like the Board to recommend to the Town

Council that Ms. DeGaetano is moved to from an Alternate Member to a Regular Member.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Sharon Wadecki

SECONDER:

Thorne Codding Codding Wadecki Wadecki Rodolico Rodolico

DeGaetano

AYE

ABSTAIN

DIRECTOR OF HUMAN RESOURCES UPDATE

Director of Human Resources update.

No report.

VI.

FINANCE DIRECTOR'S REPORT

Finance Director’s Report.

Mr. Bonin reported that the changes to the trade strategies voted on during the November

meeting were executed.

DISCUSSED

RESULT:

VII. OLD BUSINESS

Discuss Amendment 2015-1 to the Retirement Plan for Full-Time Employees of the Town of

Ledyard continued.

Ms. DeGaetano suggested that the amendment is changed to read "re-employed" not "continues

employment". Chairman Rodolico and Mayor Allyn III agreed it should read either

"re-employed" or "re-hired". Mr. Thorne said he would incorporate this change.

Motion to APPROVE a recommendation to Town Council to adopt proposed amendment

2024-1 to the Retirement Plan for Full-Time Employees of the Town of Ledyard, as presented in

the draft dated December 17, 2024.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Sharon Wadecki

SECONDER:

AYE

Thorne Codding Codding Wadecki Wadecki Rodolico Rodolico

DeGaetano

Any Other Old Business to come before the Board.

None.

VIII. NEW BUSINESS

Motion to APPROVE a monthly retirement benefit for Bobby Kempke in the amount of

$2,469.62 as of December 1, 2024, payable in the normal form of a Modified Cash Refund

Annuity based on his service and earnings through this retirement date.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Sharon Wadecki

SECONDER:

Thorne Codding Codding Wadecki Wadecki Rodolico Rodolico

DeGaetano

AYE

Motion to APPROVE payment of invoice #609_12312024, to Fiducient Advisors, dated

December 6, 2024, in the amount of $12,849.65, for consulting costs for the Town of Ledyard

Defined Benefit Pension Plan for the billing period October 1, 2024, to December 31, 2024.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Sharon Wadecki

SECONDER:

Thorne Codding Codding Wadecki Wadecki Rodolico Rodolico

DeGaetano

AYE

Motion to APPROVE payment of USI invoice # 90103509, dated November 30, 2024, for

benefit calculations for Bobby Kempke and Belinda Learned in the amount of $400.00 each for a

total of $800.00.

Ms. Wadecki asked about Ms. Learned's calculations. Ms. Dias explained that Ms. Learned

wanted two calculations performed for one for early retirement at age 63 and another for normal

retirement at age 65, to help her decision of when to retire. She added that another calculation

will not be required even if she decides to retire at age 65. Mr. Thorne asked for confirmation

that if it was decided that another calculation needs to be performed that the Board only pays for

one calculation, Ms. Dias agreed.

APPROVED AND SO DECLARED

John Rodolico

RESULT:

MOVER:

Sharon Wadecki

SECONDER:

Thorne Codding Codding Wadecki Wadecki Rodolico Rodolico

DeGaetano

AYE

Any Other New Business to come before the Board.

None.