PENSION COMMITTEE

SPECIAL MEETING

JANUARY 29, 2005

TOWN HALL 9:30 A.M.

CALL TO ORDER: The meeting was called to order by chairman Bill Kirkpatrick at 9:30 AM.

MEMBERS PRESENT: Bill Kirkpatrick, Chair; Members George and Ham Wilson and Ed Sullivan, Town Treasurer

APPROVAL OF MINUTES OF REGULAR MEETING OF 11/4/04: The minutes were reviewed; formal approval will occur at the next meeting.

FUNDED RATIO AND COMMUNICATION WITH MICHALSKI: Ed Sullivan’s 12/2/04 to R. J. Michalski and Michalski’s correspondence with Carlin, Charron and Rosen analyzing potential lump sum payouts, suggested contributions and the Town’s funded ratio were discussed. Unless there are some plan changes, it appears that Somers will be faced with significant increases in contributions over the next several years. Bill Kirkpatrick will investigate whether or not or at what point a declining fund ratio represents a problem.

INVESTMENT REVIEW: The Town plan’s investment performance for the 2003-2004 year exceeded its benchmark. We will continue to dollar-cost-average money from the money market fund to the two equity managers for the Fire Department plan; the two equity funds performed well and we will continue allocating funds to the S&P “500” portfolio from the money market fund.

INVESTMENT DECISIONS: No new decisions were deemed necessary at this time.

ADJOURMENT: The meeting was adjourned at 10:15 A.M. following the comment that the next regular committee meeting is scheduled for May 5.

Respectfully submitted,

Hamline C. Wilson, Clerk