PENSION COMMITTEE

REGULAR MEETING

NOVEMBER 2, 2006

TOWN HALL 9:00 A.M.

CALL TO ORDER: The meeting was called to order at 9:00 AM.

MEMBERS PRESENT: Bill Kirkpatrick, chair; George Warner and Ham Wilson members; and Tom Forma of Merrill Lynch.

APPROVAL OF MINUTES OF REGULAR MEETING OF 8/3/06: Minutes of the August 3, 2006 meeting were approved as written.

REVIEW OF REPORT FROM MICHALSKI/FRENCH

The plan’s funded ratio is down slightly from a year a ago, but has held fairly steady since 2002 averaging about 62%. This would be viewed as a negative by outside credit rating agencies. Bill will ask why town contributions to the Plan have been below recommended contribution levels suggested by the actuary in each of the last six years.

It was also noted that if all the “eligibles” were to retire over the next year, there could be a $687,000 drain on plan assets. There was also discussion of GASB 43 &45 dealing with future impact of healthcare funding for retirees. Bill will discuss this with Dave Pinney.

INVESTMENT REVIEW AND DECISIONS:

Tom Forma led a discussion of the Town’s Pension Plan performance and asset allocation. October was an especially good month and performance year-to-date is slightly better than the plans assumption of total return.

The Fire Department Plan was reviewed. Its performance is ahead of the Town Plan and its funded ratio is over 100%.

REPORT TO EMPLOYEES:

Bill’s draft letter to Town employees was reviewed and approved with minor wording changes. It should be distributed on November 15, 2006.

NEW BUSINESS:

Dates and times for this committee for 2007 were agreed upon as follows:

Friday February 16 9:00 AM

Thursday May 3 7:00 PM

Thursday August 2 9:00 AM

Thursday November 8 9:00 AM

ADJOURNMENT: The meeting was adjourned at 10:15 AM.

Respectfully submitted,

Hamline C. Wilson, Clerk