1993/03/24 PAGE 1
nLCEIVED FOR FILING
MINUTES
PENSION COMMITTEE MEETING 9j P +B L. I:
MARCH 24, 1993
A Meeting of the Pension Investment Committee was held on
Wednesday, March 24, 1993 in the Board of Finance Room, Town Hall .
Present were : Dorothy Chase , Gary Clinton, Nancy Lockwood,
Joseph Paskowicz, Edward Fishman.
The meeting was called to order at 2 :45 P.M.
Gary Clinton presented a breakdown of the funds now managed by
the Pension Investment Committee . They are :
T B 8/15/93 940 , 940
G I C 12/31/93 983 , 136
T B 8/15/94 883 , 750
G I C 12/30/94 1 , 232 , 603
F I C 0 (STRIP) 2/8/96 1 , 009 , 573
F I C 0 5/11/98 74, 618
F I C 0 8/8/98 1 ,408 , 140
Mr . Clinton told the committee members that two funds are
maturing in 1993 and that he is looking to invest $2 , 000,000 .
Mr. Clinton noted that the present funds are staggered with the
last one coming due in 1998 . Mr . Clinton said the Pension Committee
is looking for safe investments , being assured that the money will
be there when needed .
Edward Fishman of Pension Consultants distributed a booklet that
presented proposals from four (4 ) financial firms . The firms
were asked to quote on U.S . Government instruments whose maturities
would range from 1995 to January 1 , 1998 . The four firms are :
Shearson Lehman Brothers , Prudential Securities , A.G. Edwards,
and Dean Witter .
Mr. Fishman noted that rates for Treasury Bonds are low at this
time. Mr. Fishman suggested a four (4 ) year Treasury Bond -
yield 4. 5%. He suggested not to lock in any longer because interest
rates may up.
Mr. Fishman discussed the quote from Shearson Lehman. Their
proposal calls for investing $1 , 700,000 in either of two funds .
REFCO ( A Government Agency) Fund which would yield 4. 88% at
maturity on 1/15/97 or U.S. Treasury Strips which yield 5 . 17% at
maturity on 11/15/97 .
Mr. Fishman then discussed a proposal from Dean Witter. Their
suggestion is U.S . Treasury Strips as follows : buying Strips
which would mature in three ( 3 ) consecutive years . On 11/15/95
with a yield of 4 .07%. On 11/15/96 with a yield of 4. 71%. On
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11/15/97 with a yield of 5 . 13%.
Mr. Fishman then discussed the proposal from Prudential Securities .
This proposal suggested a purchase of both U.S . Treasury Coupons
and a purchase of FHLB (Federal Home Loan Bank) Funds . For U.S .
Treasury Coupons that mature on 2/8/95 the yield would be 3 . 857%.
Coupons maturing on 1/15/96 would yield 4 . 287 . Coupons maturing
on 9/30/97 would yield 5 .027 . FHLB Funds purchased with a maturity
date of 3/24/95 would yield 3 . 94%. FHLB Funds purchased with a
maturity date of 1/15/96 would yield 4 . 326%. FHLB Funds purchased
with a maturity date of 4/25/97 would yield 4. 897%. FHLB Funds
purchased with a maturity date of 12/4/97 would yield 5 . 12%.
Mr. Fishman then discussed the proposal from A.G. Edwards . This
proposal calls for the purchase of five ( 5) year PAC/CMO at the
following levels : 6% Coupon - GNME - to yield 5 .85%. 5 . 8% Coupon
FNMA - to yield 5 .90%. 5 .4% Coupon - FNMA - to yield 5 .93%.
A.G. Edwards also proposed looking into Zero Coupons .
Mr. Clinton suggested that the Pension Investment Committee keep
away from PAC (Planned Amortization Class ) / CMO (Colleteral
Mortgage Obligations ) .
Mr. Fishman agreed that the PAC/CMO is too complicated.
After a discussion as to the best investments in terms of safety
and yield in today ' s market , the Pension Investment Committee
recommended that Mr . Clinton ask Ms . Lockwood to get a quote from
from three of the firms that made proposals . The firms being
Shearson Lehman, Dean Witter and A.G. Edwards .
Mr . Fishman noted that Ms . Lockwood should ask for a no wire transfer
fee from each company that she is seeking a quote.
A recommendation will be made to the Executive Board at their
meeting on April 6, 1993 and Ms . Lockwood will bid out on Thursday,
April 8 , 1993 .
MOTION was made by Dorothy Chase and seconded by Joseph
Paskowicz and VOTED to bid out $2 ,000,000 at the best interest
rates on Government Bonds and Government Agency Bonds with a
maturity date between 8/1/97 to 11/30/97 .
ALL VOTED IN FAVOR.
MOTION was made by Gary Clinton and seconded by Dorothy Chase
and VOTED to adjourn the meeting .
ALL VOTED IN FAVOR .
The meeting was adjourned at 3 :45 P.M.
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Respectfully submitted ,
JoAnn Budzinski
Recording Secretary