Thursday, January 22, 2009

Retirement Advisory Board 1/21

The Pension Board met last night. It was a special meeting convened to determine one thing.

Of the town's ten or so funds, one fund (UBP) is offering a redemption tomorrow. And the redemption is only offered once per quarter, tomorrow being the critical date.

In a nutshell, the issue is that the fund falls under a larger umbrella company. And there is concern that the umbrella company has other funds related to Madoff.

In the long-term this shouldn't be an issue as the pension money is not supposed to be touching any Madoff funds. Nonetheless, if there's a "bank run" then the funds could be tied up indefinitely. So the Board voted unanimously (of the three members present) to redeem the funds.

Tim White