ANNUAL REPORT 2008 | PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION

ANNUAL REPORT

COMMONWEALTH OF MASSACHUSETTS Commonwealth of Massachusetts Public Employee Retirement Administration Commission Five Middlesex Avenue, Suite 304 | Somerville, MA 02145 Web www.mass.gov/perac Phone 617 666 4446 Fax 617 628 4002 Public Employee Retirement TTY 617 591 8917 Web www.mass.gov/perac Administration Commission 2008 PERAC STAFF

Administration Audit Fraud Prevention • Joseph E. Connarton • Harry Chadwick • Sandra King Executive Director Chief Auditor Fraud Prevention Manager • Joseph I. Martin • James Tivnan • Ellen Aucoin Deputy Executive Director Deputy Chief Auditor Administrative Assistant • Frank E. Valeri • Robert Madison Deputy Director Western Chief Auditor Information Systems • Michael J. DeVito • Richard Ackerson • Paul Laliberte Director of Strategic Planning, Auditor Director of Information Systems Management & Public Affairs • Martin Feeney • Anthony Tse • Caroline J. Carcia Auditor Project Manager Director of Administrative Services • Scott Henderson • K-Lone Steele MISSION STATEMENT • Kim Boisvert Auditor Senior Systems Engineer Senior Executive Assistant • Carol Niemira • Irina Boukina • Virginia Barrows Auditor Senior Programmer/Analyst The Public Employee Retirement Administration Commission (PERAC) was created for and is dedicated to the oversight, Chief Financial Officer • James Ryan • Mark Joseph • Katie Bozzi Auditor Senior Programmer/Analyst Accounts Payable Specialist guidance, monitoring, and regulation of the Massachusetts Public Pension Systems. The professional, prudent, and • John Shea • Joan Arsenault Auditor Investment Administrative Assistant • James Sweeney efficient administration of these systems is the public trust of PERAC and each of the 106 public pension systems for • Tracey Legaski Auditor • Robert Dennis Administrative Assistant Investment Director the mutual benefit of the public employees, public employers, and citizens of Massachusetts. The stewardship of the • Victoria Marcorelle Communications Senior Investment Analyst Actuarial • Sarah Kelly • Veronica Colon Trust Funds for the sole purpose of providing the benefits guaranteed to the public employees qualifying under the • James Lamenzo Communication & Education Director Fund Accountant Actuary • Michael Litvack • Rose Cipriani • John Boorack Webmaster/Graphic Design Specialist Administrative Assistant plans is the fulfillment of the obligation of the people of the Commonwealth to those who have dedicated their Actuarial Associate • Faith Towers • Kaitlyn Carbone Graphic Designer Legal professional careers to the service of the people of the Commonwealth. Actuarial Assistant • Ben Polatin • Sherry Brooks-Ross Communication Specialist • Barbara Phillips Benefit Calculation Specialist General Counsel • Judith Corrigan Disability Deputy General Counsel • Barbara Lagorio • Derek Moitoso Director of Disability Associate General Counsel • Kate Hogan • Susan Childs Manager of Medical Services Executive Assistant • Mary Jane Carritte Clinical Case Manager • Patrice Looby Nurse Case Manager • Doreen Duane Case Manager • Regina Manning Administrative Assistant Annual Report 2008 CONTENTS • Commission Members ii • Fitchburg 44 • North Adams 85 • Letter from the Chairman 2 • Framingham 45 • North Attleboro 86 • Letter from the Executive Director 3 • Franklin Regional 46 • Northampton 87 • In Memoriam/Brian Leahy 6 • Gardner 47 • Northbridge 88 • 2008 Financial Market & • Gloucester 48 • Norwood 89 Board Performance Review 7 • Greater Lawrence 49 • Peabody 90 • Introduction to the Board Profiles 11 • Greenfield 50 • PRIM 121 • Composite Investment Profile 12 • Hampden County Regional 51 • Pittsfield 91 • Hampshire County 52 • Plymouth 92 Board Profiles • Haverhill 53 • Plymouth County 93 • Adams 13 • Hingham 54 • Quincy 94 • Amesbury 14 • Holyoke 55 • Reading 95 • Andover 15 • Hull 56 • Revere 96 • Arlington 16 • Lawrence 57 • Salem 97 • Athol 17 • Leominster 58 • Saugus 98 • Attleboro 18 • Lexington 59 • Shrewsbury 99 • Barnstable County 19 • Lowell 60 • Somerville 100 • Belmont 20 • Lynn 61 • Southbridge 101 • Berkshire County 21 • MHFA 62 • Springfield 102 • Beverly 22 • MWRA 63 • State 103 • Blue Hills Regional 23 • Malden 64 • State Teachers 104 • Boston 24 • Marblehead 65 • Stoneham 105 • Braintree 26 • Marlborough 66 • Swampscott 106 • Bristol County 27 • Massport 67 • Taunton 107 • Brockton 28 • Mass Turnpike 68 • Wakefield 108 • Brookline 29 • Maynard 69 • Waltham 109 • Cambridge 30 • Medford 70 • Watertown 110 • Chelsea 31 • Melrose 71 • Webster 111 • Chicopee 32 • Methuen 72 • Wellesley 112 • Clinton 33 • Middlesex County 73 • West Springfield 113 • Concord 34 • Milford 74 • Westfield 114 • Danvers 35 • Milton 75 • Weymouth 115 • Dedham 36 • Minuteman Regional 76 • Winchester 116 • Dukes County 37 • Montague 77 • Winthrop 117 • Easthampton 38 • Natick 78 • Woburn 118 • Essex Regional 39 • Needham 79 • Worcester 119 • Everett 40 • New Bedford 80 • Worcester Regional 120 • Fairhaven 41 • Newburyport 81 • Fall River 42 • Newton 82 • Disability Retirement Statistics 123 • Falmouth 43 • Norfolk County 83 • PERAC Staff Inside Back Cover

PERAC ANNUAL REPORT 2008 | i The Honorable Domenic J. F. Russo The Honorable A. Joseph DeNucci Chairman Auditor of the Commonwealth Vice Chairman

The Honorable Deval Patrick Robert B. McCarthy Governor of the Commonwealth President of the Professional Fire Fighters of Massachusetts

ii | PERAC ANNUAL REPORT 2008 Commission Members

James M. Machado Sergeant, Fall River Police Department

The Honorable Paul V. Doane Donald R. Marquis Investment Professional Former Town Manager, Arlington

PERAC ANNUAL REPORT 2008 | 1 Letter from the CHAIRMAN

he Public Employee Retirement Administration ment has led to asset losses of 19% to 33% and, on 2008 will be remembered as the year that forces Commission is pleased to release this 2008 An- an actuarial basis such losses were, in general, 27% beyond our control threatened the very existence Tnual Report detailing the Commission’s activi- to 41%. Further details regarding this performance of our retirement system. A misguided response to ties and reviewing the status of the Massachusetts can be reviewed in the Report. It is worth noting, the challenges created by 2008 will lead to lasting public pension plans. however, that our pension systems are long-term damage to employees, retirees, and their beneficia- investors and, on a long-term basis, investment per- ries. More than that, such a response will damage In last year’s Report I stated, “…the financial and formance has, in spite of the 2008 experience, been the citizens of the Commonwealth who depend on a benefit structure of the systems, as created by at or near actuarially assumed rates of return. committed, engaged, and professional work force to Chapter 32, has been scrutinized as never before.” meet their many needs ranging from public safety If anything, that scrutiny has intensified over the During the course of the past year, the composition to education to social services, energy, and the course of the year and, in particular, during the last of the Commission has changed as one member environment. several months. Legislation has been adopted that has gone on to serve in a more august body and has amended benefit provisions dealing with termi- been replaced by a member of equal passion and As always, the Commission and staff will use our nation, creditable service, and regular compensation commitment to our retirement system. We all best efforts to assist the retirement boards in as well as other aspects of the law. As we go to congratulate Kenneth J. Donnelly on his election to safeguarding the interests of system members press, a Special Commission to Study the Massachu- the State Senate and, although we will miss his wise and beneficiaries. setts Contributory Retirement System is meeting counsel, it is comforting to know that his knowledge, to assess even more dramatic changes than those perception, and decency will now benefit all the Sincerely, already approved. This year, I must stress again that citizens of the Commonwealth across a broad array of our common challenge is to make the case for our issues. Senator Donnelly’s replacement also comes to pension system, while acknowledging the necessity the Commission from the Professional Firefighters of of reasonable and responsible reforms. Massachusetts, President Robert B. McCarthy. In the relatively short time that he has served, Commis- Domenic J.F. Russo These matters are being considered at perhaps the sioner McCarthy has made a lasting and substantive Chairman worst possible time in light of the asset deterioration contribution to the other members’ understanding that took place in 2008 due to investment market of the challenges and frustration of the working men conditions. Although our systems performed as well and women who serve the public and are members and in many cases better than their counterparts na- of the retirement systems. tionally, the bottom line is that the market environ-

2 | PERAC ANNUAL REPORT 2008 Letter from the EXECUTIVE DIRECTOR

e are pleased to present this Annual Report for one day of service in a calendar year; (10) Authorize a retirement board to require direct for 2008 which provides a review of the deposit of benefit payments to members; Wactivities of the Public Employee Retirement (2) Repeal eligibility for a Section 10 termination Administration Commission (PERAC) and the Massachu- benefit for those who fail to be nominated, re- (11) Authorize a retirement board to require a retired setts public pension systems. elected, or do not become candidates for nomina- member to assign an amount to pay subscriber tion for re-election; premiums for health insurance at retirement; Pension Reform It is not an exaggeration to state that we issue this Report (3) Increase the vesting period for elected officials (12) Add language to Section 91(b) of Chapter 32 at a time when the Chapter 32 retirement system is at a from six to ten years; which clarifies that earnings limits will apply to crossroads. In the last several publications, as well as var- employment with an “authority” and will also limit ious forums, the Commission has made it clear that the (4) Eliminate creditable service for library trustees; service as a consultant to a public entity. administrative, investment, and benefit structure of the Massachusetts Public Pension Plans has been receiving (5) Repeal the provision allowing unpaid selectman, Legal Concerns unprecedented scrutiny by policy makers, the media, and alderman, school committee members, or town The new law contains language overriding the contract taxpayers. Recognizing the need for change, the Com- moderators directly elected by the people prior language of Section 25 of Chapter 32 resulting in the mission has, on a number of occasions, filed legislation to 1/1/86 to receive creditable service for their benefit changes applying to active members of the to improve the governance practices of the retirement service in those positions; system. Although legal challenges can be anticipated to boards. The Governor has signed into law a proposal that these provisions, the Legislative intent is clear and unless will alter substantive benefits provided under Chapter 32 (6) Change the definition of “regular compensa- and until the courts rule otherwise: that is the law. for the first time in memory. At the same time, a Special tion” to remove certain compensation from being Commission to Study the Massachusetts Retirement included in retirement benefit calculations; Myth versus Reality System is preparing its recommendations which may be On a substantive basis, a clear picture of the actual far-reaching and transform our pension plan in a man- (7) Provide that a municipal, county, or state em- benefit available to employees as it compares to other ner that will make it virtually unrecognizable to those ployee receiving compensation of less than $5,000 similar jurisdictions and the method of financing is criti- familiar with its present provisions. The Commission and, annually will not receive creditable service for serv- cal to a sober and fair assessment of proposed changes I believe, the entire pension community, is prepared to ing in a position paying that amount. to Chapter 32. support reasonable reforms that improve the system. However, if necessary, we must band together to oppose (8) Preclude an individual from working two full-time The assertion that public employee pension benefits are any suggestion that the basic benefit structure of our positions at the same time and, as a result, estab- too generous in Massachusetts is now so commonplace law be changed in a knee-jerk response to controversies lishing membership in two retirement systems in our public discourse as to possess a credibility that is related to archaic aspects of the statute that have limited and combining the salaries received from those not warranted. New employees in the most common applicability. positions to determine the regular compensation group classification generally finance their own benefit on which the retirement benefit is based; over their working lives. In other groups, a significant Recently approved legislation has instituted pension percentage of the benefit for new members is self- reforms that: (9) Change the method for calculating accidental financed. The total percentage of retirement benefit (1) Eliminate the one day – one year rule whereby disability benefits; available to Massachusetts public retirees is capped at elected officials receive a year of creditable service 80% of their three-year average annual rate of regular

PERAC ANNUAL REPORT 2008 | 3 compensation. This maximum is not supplemented by Prior to the 2008 market collapse, the situation had been or other unsavory actions in the investment of public Social Security. This contrasts with a retiree from another essentially reversed with 99 systems funded at a ratio pension funds across the country. New York Attorney jurisdiction such as New York that provides a defined greater than 50%, and 38 funded at a level above 75%. General Cuomo recently indicted several former officials benefit plan in conjunction with Social Security. In that Only seven systems are funded at a ratio below 50%. of the State Comptroller’s office as well as so-called system, an employee with 30-40 years of public service “placement agents” and managers for participation in receives a state pension between 60% and 75% of salary Fifty of the Massachusetts’ public pension plans including a scheme that extracted “kickbacks” from firms seeking in addition to Social Security. As a result, many New York several of the largest (Boston, Cambridge, State and to manage assets of the New York State Common public employees retire with a benefit in excess of the Teachers) would have been fully funded within fifteen Retirement Fund. These cases involve “sham finder or salary they received while working. years, well before the maximum time period allowed by placement agent fees” totaling in the millions. General law (2028). Cuomo’s investigation has expanded to the New York Earlier this year, PERAC released its State of the Pension City Pension Funds and sparked inquiries in New Mexico, System 2009, a publication designed to provide a status Funding in the Post 2008 Era California, New Jersey, Texas, and Connecticut. report on the Massachusetts public pension systems. PERAC recognizes that 2008 has dramatically altered the That document reviewed the funding history of the 106 short and long-term prospects for pension funding. With PERAC has once again filed its Governance Reform retirement systems and attempted to place the experi- that reality in mind, we asked that actuaries who provide Legislation which seems more relevant than ever. In the ence of 2008 in context. services to the retirement boards assess alternative area of transparency, it would: funding methodologies that will assist the state and its For the first time, legislation in 1987 allowed retire- cities and towns in fulfilling their financial commitment (1) Authorize PERAC to debar firms from doing busi- ment boards to seek financing on an actuarial basis. to employees and retirees in a responsible and equitable ness with Massachusetts retirement systems if The unfunded liability confronting the systems at that manner. A number of suggested approaches have been the firm has been convicted of a crime involving time was not the responsibility of the retirement board submitted for consideration and the Commission expects public contracts; has been found to supply false or the benefit structure in place; it was entirely due to to submit legislation to implement a new standard for information in an effort to obtain a contract; has the method of financing that had for years artificially pension funding in the near future. submitted an inaccurate disclosure statement to masked the true cost of the pension systems. This failure the Commission or a board; or has failed to dis- to finance pension costs properly for the shortsighted, Obviously, 2008 has now made the achievement of the close to a board or the Commission compensation temporary freeing of resources for use on other priorities, full funding goal on the timetable outlined less likely. provided to any person in relation to attempting regardless of the value of those expenditures, is the true However, as solutions are crafted to address the econom- to obtain a public contract. This would enable the cause of the financial crisis that – even though some ic and budgetary crisis confronting the Commonwealth Commission to proceed against firms which have funding and investment reforms have been enacted and its cities and towns, one goal should be to assure violated these provisions elsewhere in the country. – continues to confront us today. Reform legislation that, when the economy rebounds, the responsible and For the first time, sanctions could be applied in recognized the financial impossibility of an immediate timely meeting of our pension obligations takes place Massachusetts in circumstances such as those commencement of actuarial funding on a level amortiza- smoothly and, as far as practicable, on the same basis as uncovered in New York; tion payment basis. For the same reasons, the law called was the case when the crisis hit. for a maximum time period in which systems must retire (2) Codify disclosure requirements mandating that unfunded liabilities. This responsible approach ensured As noted, in aspects of the benefit plan from member all vendors annually inform the Commission and that systems would ultimately adopt a full funding contribution rates to cost-of-living allowances for the board of any compensation arrangements to approach while providing the flexibility for systems on retirees, the Massachusetts plan lags those available be received or to be paid in relation to the services a case by case basis to be as aggressive as circumstances in other states and localities. This does not argue for provided, as well as to annually disclose any of their individual governmental units allowed. The enhancing these benefits but it does serve as a reminder conflicts of interest that may exist; mandate that full funding be achieved by 2028 and the that it would be tragic from a fiscal and human point authorization of a 4.5% annually increasing amortization of view to tear up this system and put in its place an (3) Require vendors to submit a sworn statement that payment reflects the clear expectation that a transition alternative that is neither affordable nor sufficient to a good faith proposal has been made without period would be necessary to commence full funding. meet the needs of retired employees. The Social Security collusion or fraud; and alternative would substantially increase costs to the Prior to 2008, the transition period was coming to an end state and other public employers while diminishing the (4) Establish civil penalties, including double dam- for many systems. Based on pre-2008 schedules, sixty- benefit to retirees. The defined contribution alternative ages for violations of competitive process and three systems would have experienced a decline in un- must be deemed virtually ludicrous in the wake of the disclosure requirements. funded liability as a result of appropriation immediately 2008 investment experience. and by FY 2013, nearly all systems would begin seeing In addition, numerous good governance practices are such a decline. This was precisely the process envisioned Today the Massachusetts plan is transitioning to an em- set forth: in 1987 when funding legislation was adopted. ployee funded defined benefit plan. In the years ahead, as we recover from the 2008 experience, the wisdom of (1) The establishment of an explicit open and com- One hundred of the one hundred and six Massachusetts holding firm will be rewarded with a resumption of prog- petitive process to be followed by boards when public pension funds were less than 50% funded in 1987. ress towards full funding and a reduction in the level of soliciting investment, actuarial, legal or accounting At that time, only two systems had a funded ratio above public resources that must be used to pay pension costs. services; 75%, and four were funded at a level greater than 50%, but less than 75%. National Developments (2) Require board members to file statements of Each day seems to bring new allegations of “pay to play” financial interests;

4 | PERAC ANNUAL REPORT 2008 (3) Prohibit vendors, contractor, employees or others Conclusion 10 allowances, dual membership, and the definition of receiving remuneration from a retirement board In last year’s report I stated, “The Commission is not blind regular compensation. PERAC has been pleased to offer or anyone doing business with a retirement board to the need to make changes in our retirement law. It has its assistance to policy makers as they confront these is- from serving on a retirement board; sponsored legislation to reform the administration of the sues and we pledge our cooperation as the reform process system to increase transparency, assure accountability, continues. (4) Require board members to submit a sworn state- and improve management …We acknowledge that, ment that, to the best of his or her knowledge, any in some areas, the law may be unclear or anachronistic Sincerely, proposal made as part of a competitive process is and we will work with those that seek responsible and submitted in good faith and without collusion and appropriate reforms.” The Governor and Legislature fraud; and have worked to produce a reform of a number of these anomalous aspects of Chapter 32, focusing on elected Joseph E. Connarton (5) Mandate relevant education for board members. officials’ membership and creditable service, Section Executive Director

PERAC ANNUAL REPORT 2008 | 5 IN MEMORIAM Brian Leahy, executive officer and an elected board member of the Massachusetts Water Resources Authority (MWRA) Retirement Board, died suddenly on January 11th, 2009. Brian had served at the MWRA since 1986, first as the manager of intergovernmental affairs. In 1994 he assumed the position of executive officer of the MWRA Retirement System. In 2007 he was elected by the employees of the authority to serve on the retirement board. Prior to his service at the MWRA, he was named by Mayor Kevin White in 1980 to head the Boston Retirement Board.

This “gentle giant” from Dorchester was very well-known and respected throughout the Massachusetts retirement community. He was an elected executive board member of MACRS and participated in many PERAC regional and state training seminars. He was also selected by Executive Director Joseph Connarton to serve on the Public Pension Advisory Group (PPAG) with other retirement board administrators to provide input to the Commission on the development of more efficient public pension administration. However, what most of us often experienced, was Brian’s great loyalty towards his staff, his retirement board colleagues, and the entire membership of the MWRA Retirement System. He relentlessly fought for the rights, benefits, and fair treatment of the members and his staff at all levels.

His lifetime dedication to his community and family was even more important than his contributions to public service. His daughter, Ann McGough, in her tribute to her dad, published in the Dorchester Reporter noted, “While he is so profoundly missed by so many, it is a gift that we were touched by Brian M. Leahy. How he spent his last day on earth sums up the beautiful way in which he lived his life; he was civically active, he was a man of strong faith, and he always made time for his friends and family.”

6 | PERAC ANNUAL REPORT 2008 2008 Financial Market & Retirement Board Performance Review

s the US — and most of the world — fell deeper After the carnage of 2008, most broad stock indices show between these bonds and Treasuries tripled from about into recession and interest rates on short Treasury negative annualized returns of about 1% for the trailing 2% to 6% during the year. High yield “junk” bonds suffered Asecurities approached zero, a horrific fourth quarter ten year period. Equity performance lags behind most their worst year ever as their yield spread to Treasuries saw stocks tumble to multi-year lows in one of the other asset classes — including investment grade bonds, generally tripled from about 6% to over 18% during the market’s worst, and most volatile, years ever. Several of the which returned an annualized 5.6% — over this period. year. Performance of the Treasury’s inflation-protected nation’s largest financial institutions either failed or were securities (TIPS) suffered as investors began to focus more taken over and the government resorted to unprecedented Small caps outperformed large caps by about 4% in 2008 on the threat of deflation than inflation. Investment- measures in a frantic effort to forestall an even worse even though larger companies are typically expected to grade bond issuance fell 35% during the year while junk economic debacle. hold up better in a recession. Value held up modestly bet- bond issuance plummeted by 75%. Overall, the Barclay’s ter than growth. Among the S&P 500’s sectors, financials (formerly Lehman Brothers) Aggregate Bond Index During the tumultuous quarter, the hotly debated $700 performed the worst for the year (-56.95%). The best rose 5.2% in 2008, while indices for investment grade billion rescue plan approved by Congress was signed by the performing sectors for the year were telecom services corporate and junk bonds showed losses of about 7% and President, the market followed with its worst week ever (-2.86%) and consumer staples (-17.66%), respectively. 26%, respectively. and then its single largest daily gain ever, the jobless rate rose to a 15-year high, consumer prices saw their biggest Among notable individual stocks, troubled mortgage gi- With the freezing of so many parts of the credit markets decline in over 60 years, stocks broke through their previ- ants Fannie Mae and Freddie Mac both saw their stocks de- leading stocks and the economy on their downward path ous bear market lows, the government pledged to pump cline 98% while crippled insurer AIG suffered a 97% loss. in 2008, an unprecedented and very costly many-pronged another $800 billion into ailing credit markets, industrial General Electric fell 56%, General Motors declined 87%, effort by the Fed and the Treasury to restore liquidity to the output registered its biggest decline in almost thirty years, and Citigroup lost 77%. Reflecting consumers penchant markets by recapitalizing institutions and hopefully stimu- the government stepped in to stabilize Citigroup and then for belt tightening, WalMart (+18%) and McDonald’s were lating new lending was undertaken and by the end of the to shore up General Motors and Chrysler, mortgage rates among the market’s few gainers for the year. year there was cautious optimism that some of these bold declined to their lowest levels in decades, and the Fed moves were beginning to have a positive effect. cut interest rates to historic lows. And to complete the One theme heard throughout the year was that there was nightmarish quarter, financier Bernard Madoff was ar- virtually no place to hide during 2008. This was certainly Other Asset Classes rested in December on charges of orchestrating a massive true of foreign stock markets as no region of the world For real estate, 2008 was the year when things went from multi-billion dollar investment fraud. was able to “decouple” itself from the US’ problems. Europe bad to worse, when the residential housing market had appeared to be mired in a recession even more severe its worst year ever and when troubles began spilling over Equity Market than the US, Asia’s export economies were battered by to the commercial market as a result of the weakening US stocks finished with their third worst year ever and evaporating demand in the West, and slumping commod- economy and the worsening credit crunch that ground worst since the Great Depression. The Dow Jones Industrial ity prices contributed to the woes of Latin America. The new deals to a virtual halt. It was difficult to obtain a Average, off 33.8% for the year, had its worst year since surprising strength of the dollar (up 8.6% in 2008 in the reliable gauge as to just how far commercial property 1931 and the S&P 500 (large cap) index, off 38.5%, had its Fed’s trade-weighted index) served to worsen losses for values have fallen since there have been so few actual worst year since 1937. The NASDAQ Composite fell 40.5%, US investors. The MSCI-EAFE Index was down 43.4% for transactions, but the 38% drop (all of which occurred in registering its worst year ever, even surpassing the decline the year. MSCI’s Emerging Markets index was down 53.3% the fourth quarter) in the NAREIT Index of publicly traded suffered after the tech stock bubble burst in 2000. The for 2008. equity real estate investment trusts offered an ominous broad market Dow Jones Wilshire 5000 suffered a 37.3% clue. Weakness in both consumer and corporate spending decline. Scarily, these historically bad returns came even Fixed Income Market was having obvious effects on the valuation of shopping after a rebound of nearly 20% from lows reached during The credit markets were the major drivers behind most of malls, warehouses, office buildings, and hotels. The 6.5% November. 2008’s historic events. During a quarter when it seemed decline in the NCREIF national property index for private that stock prices were falling to zero, yields on short-dated investment was that benchmark’s first negative year since The pain of the year’s losses was sharpened by gut- Treasuries actually did approach zero as a result of the 1992. wrenching volatility during the final months of the year. Federal Reserve’s aggressive action to resuscitate the The Dow saw four of the largest one day losses as well as economy and many investors’ willingness to accept virtu- With activity in mergers and acquisitions as well as in the two of the biggest one day gains in its 113-year history. ally no return as long as they were assured of getting their initial public offerings market grinding to an essential halt Average intraday swings between intraday highs and principal back. The Fed cut the Fed Funds rate seven times in 2008 and with the historic declines in the public equity lows on the S&P 500 were 6.9% in October and 5.4% in during 2008, from 4.25% at the start of the year to the markets, it was no surprise that alternative investments November, representing the two most volatile months record low 0-0.25% range set at its December meeting. also fared poorly. Although, as always, performance will ever. Before recovering at year end, US stocks — at their Holders of Treasury securities enjoyed capital appreciation vary widely among specific managers in these areas, the November lows — were down about 54% from their during 2008 as the yield on the ten-year note declined Cambridge Associates indices for venture capital and pri- October 2007 record highs, representing a loss of about from 4.033% to 2.25% and the yield on the 30-year bond vate equity were down 16.53% and 24.20%, respectively. $10 trillion in market value. At the November lows, stocks dropped from 4.457% to 2.671%. Both levels represented were at their lowest level in six years. historic lows. However, investors in investment-grade As widely noted, there was no place to hide in 2008 and, corporate bonds suffered losses as the yield differential to the dismay of many, this also applied to hedge funds,

PERAC ANNUAL REPORT 2008 | 7 MARKET SHAPING EVENTS AND THE S&P 500 IN 2008 JANUARY FEBRUARY MARCH APRIL MAY JUNE 15001500

1400

1300

12001200 Dow Jones Industrial Average Standard & Poor’s 500 1000 1931 -52.7% 1931 -47.1% 1907 -37.7% 1937 -38.6% 2008 -33.8% 2008 -38.5% 1930 -33.8% 1974 -29.6% 900 1920 -32.9% 1930 -28.5%

900800

700

JANUARY Chase at a fire sale price in a deal brokered and partly financed • Lehman Brothers posts a big loss as doubts about its survivability by the US. rise. JAN 2 1471.77 • The Fed cuts short term rates by another 0.75%. • The Dow was down another 7.4% for the second quarter. JAN 31 1385.62 • Stocks finish their worst quarter in 5 ½ years, down 7.6%. • The Dow begins the year by falling 221 points, its worst open- ing trading loss in 25 years. JULY • The jobless rate in December reached 5%, the highest level in APRIL JUL 1 1285.31 over two years. APR 1 1370.18 JUL 31 1284.93 600 • Bank of America buys Countrywide Financial, the US’ largest • With crude oil reaching new highs and increasing concern about APR 30 1404.57 mortgage lender, rescuing it from collapse. the economy, the Dow’s latest fall left it more than 20% below its • In an attempt to shore up investor confidence, the Federal • Delta and Northwest merge to form the world’s largest airline. record close of October 2007. Reserve announced a surprise 0.75% cut in the Fed Funds rate. • Toyota overtakes GM as the world’s largest automaker. • Gasoline use fell to its lowest level in five years. Another 0.50% cut happens nine days later on January 29. • March’s new home sales were the slowest in over 17 years. • IndyMac Bank becomes one of the US’ largest bank failures. • Standard & Poor’s downgrades thousands of collateralized debt obligations and other mortgage-backed securities. • The SEC moves to curtail short-selling in a number of financial company stocks. MAY • Major banks announce large losses and Ford reports its largest FEBRUARY MAY 1 1410.07 quarterly loss ever. FEB 1 1396.02 MAY 30 1404.46 FEB 29 1364.07 • The Fed makes its seventh cut in eight months as indications of AUGUST recession mount. • With oil prices soaring, Exxon Mobil announces the largest AUG 1 1270.52 annual profit in US history. • AIG posts a record $8 billion first quarter loss. AUG 29 1297.59 • Congress approves a $168 billion economic stimulus plan. • Consumer sentiment drops to a 28-year low. • The Dow advances as plunging oil prices and reassuring signals • General Motors announces a $39 billion loss, the largest ever by from the Fed raise hopes that the worst is over. an automaker. JUNE • Russia sends troops into Georgia. • Crude oil trades above $100 a barrel for the first time ever. JUN 2 1399.62 • Amid dazzling technology, the Olympics open in Beijing. JUN 30 1290.31 • Obama and McCain receive their parties’ presidential nominations. MARCH • The Dow suffers its worst one day loss in over a year on June 6 as MAR 3 1335.13 financials tumble. SEPTEMBER MAR 31 1328.52 • The jobless rate has its largest monthly increase in 20 years. SEP 2 1303.04 • Manufacturing activity for February was at a five-year low and • As crude oil soars to a new high, gasoline prices surge above $4 consumers began to cut back on their driving. for the first time, further straining household budgets. SEP 30 1168.03 • The Dow has its biggest one day advance in five years after the • Bond insurers MBIA and Ambac lose their “AAA” ratings, further • Disappointing retail sales and employment numbers sent the Fed announces a $200 billion program of loans to troubled Wall pressuring financial markets. Dow lower. Street firms. • Expressing concern over inflation, the Fed keeps rates unchanged • At 6.1%, August’s unemployment rate was the highest in almost • At the brink of collapse, Bear Stearns sells itself to JP Morgan for the first time in almost a year. five years.

8 | PERAC ANNUAL REPORT 2008 1500 JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

1200

900

• In its most dramatic market intervention yet, the government • The world’s central banks launched a coordinated attack on the • The government announced an unprecedented program of seized troubled mortgage giants Fannie Mae and Freddie Mac. widening financial crisis. assistance to stabilize Citgroup. • September 14 was a historic day that marked the end of Wall • On October 9, the Dow’s 7.3% decline left it at 8579, after • The US pledged to pump an additional $800 billion into ailing Street as we knew it as Lehman Brothers declared bankruptcy seven straight daily losses wiped out over 20% of the market’s credit markets. and Merrill Lynch was acquired by Bank of America. Doubts value. about AIG’s survivability increased. • October 10 was the most volatile day ever for the Dow as it fell • On September 15, the Dow fell over 4% and oil fell over 5% to to 8451 after its worst week ever. DECEMBER below $100 for the first time since March. • Spurred by government plans for direct capital injections into DEC 1 888.61 600 • In another stunning move, the US seized control of AIG. troubled banks, October 13 saw the Dow rise 936 points (11%), DEC 31 910.32 its best one-day point gain ever. • Formalizing the end of the traditional Wall Street model, the • NBER states that the recession officially began in December Fed agreed to convert the last two major investment banks, • The Fed announces a $540 billion assistance fund for money 2007. Goldman Sachs and Morgan Stanley, into closely-regulated bank market funds. holding companies. • November’s largest monthly job loss in 34 years drove the • In anticipation of another interest rate cut, the Dow had jobless rate to 6.7%, a fifteen-year high. • In a move seen as an expression of confidence in the financial another surge of nearly 11% on October 28. The next day, the system, Warren Buffet makes a $5 billion investment in Goldman Fed cut the fed funds rate to 1%. • Bernard Madoff was arrested on charges of orchestrating a Sachs. multi-billion dollar investment fraud. • Consumer spending suffered its worst fall in 17 years as the • In the largest bank failure in US history, the Feds seize Washing- overall economy contracted at a 0.3% annual rate. • The Fed lowered its target rate to a historic low range of 0 to ton Mutual and sell most of its operations to JP Morgan. 0.25%. • Besides a 33% decline in oil and 32% plunge in auto sales, the • New home sales dropped 11.5% from July through August amid Dow lost 14% in October, the worst month in over ten years. • Oil prices fell to $40 a barrel, the lowest level in four years. a glut of unsold homes. • Conventional 30-year mortgage rates fell to 5.2%, the lowest • The Dow fell 7% on September 29 as the House defeated the level since at least 1971. administration’s $700 billion rescue package and fears grew NOVEMBER • The White House agreed to lend GM and Chrysler $17.4 billion about more bank failures. NOV 3 975.57 in an effort to prevent these firms’ bankruptcies • Citigroup agrees to acquire Wachovia but Wells Fargo follows NOV 28 896.25 • Even with price-cutting, weak sales brought a bleak holiday with a more attractive bid and ultimately wins control. season for retailers. • In an historic election, Barack Obama won the presidency and • The Dow was down another 4.4% during the third quarter. Democrats increased their majorities in Congress. • The government commits $6 billion to stabilize General Motors Acceptance Corporation. • In the two days after the election, the Dow lost 10% in its big- OCTOBER gest two day percentage drop in over 20 years and the largest • After trading in a range of $33.87 to $145.29, oil closed the point drop ever. year at $44.60 a barrel. OCT 1 1167.03 • October’s jobless rate was reported to be 6.5%, a 14-year high. • Despite an upward trend at month-end, the Dow lost 18% OCT 31 984.38 during the fourth quarter and ended the year at 8776, a fall • Circuit City’s bankruptcy filing underscored the worsening retail of 33.8%, its worst percentage drop since 1931 and the third • Congress approved and the President signed the revised $700 picture. worst ever. The S&P 500 was off 38.5% in price terms and billion rescue plan. • Detroit automakers pleaded with Congress for bailout money NASDAQ was off 40.5%. • On October 6, the Dow fell below 10,000 for the first time in but their request was voted down. almost four years. • The largest single month decline in consumer prices in over 60 • For the first time since the Great Depression, the Fed will lend years added to fears of deflation. directly to corporations.

PERAC ANNUAL REPORT 2008 | 9 which suffered through the worst year by far in the stabilize the housing market, and to encourage a reason- 2008, was 20.5% Domestic Equity (19.7% conventional industry’s relatively short history. Hedge funds could not able amount of risk taking once again. Given the massive and 5.8% portable alpha), 17.6% International Equity, escape the huge decline in stock prices and the collapse and worldwide nature of the problems, it is likely that the 3.7% Emerging Markets, 12.6% Fixed Income (10.1% US of most areas of the credit markets, and when they healing process will be an extended one. Bonds and 2.5% TIPS and other real return investments), were forced to sell assets as part of deleveraging or to 7.1% High Yield, 12.1% Real Estate, 4.3% Timber, 11.4% meet redemptions, the fact that so many hedge funds After a year when everything other than Treasury securi- Alternative Investments, 5.6% Absolute Return (Hedge owned the same or similar assets further aggravated the ties (and cash) tumbled in value, this might not be the Funds). Compared to public funds nationwide, PRIT losses. Returns varied widely according to manager and best time to repeat our usual strong encouragement for has below-average allocation to domestic equity and strategy, but many of the industry’s most highly regarded a diversified asset allocation. Nevertheless, the fact that above-average exposure to nontraditional asset classes. managers suffered significant losses and some of the all asset classes did not fall uniformly and that some asset In addition to the 49 systems that invested essentially all strategies, like convertible arbitrage, that had provided classes did hold up significantly better than stocks does their assets in the PRIT Core Fund at year-end, 12 systems some of the steadiest returns in the past posted huge indicate that asset allocation certainly remains important. had partial investments in the PRIT Core Fund (in some losses in 2008. Hedge Fund Research’s composite returns cases, representing a significant portion of total assets) for the year were -18.7% for hedge funds overall and After a year when the typical public retirement system and nearly 40 systems participated in one or more of the -21.0% for funds of funds. The fact that composite hedge is likely to have suffered a loss in the range of 25-27%, PRIT Fund’s segmentation options. fund losses were significantly less than those of stocks perhaps the one thing we can say with confidence is and several other major asset classes including publicly that it is finally over and we very unlikely to experience Performance for 2008 among the 104 local systems traded real estate and junk bonds was of little solace another year like 2008. Bear markets have happened ranged from -19.3% to -33.1%. The median return was to investors expecting positive absolute returns. Assets before and they will occur again, but investors should not -28.0% and the composite return was -28.6%. For the under management declined (by about 25%, according to lose sight of the fact that their strategies and goals are 63 systems that began 2008 investing on their own, the some estimates) for the first time ever and the rate of at- long-term in nature. median return was -26.6%. Eight of these systems joined trition among hedge funds was expected to show a sharp the PRIT Fund at various times during 2008. For the 55 rise. Losses on hedge funds added further woe to those Retirement Board Review systems that still invested on their own at year-end, the pension funds that employed portable alpha strategies As of December 31, 2008, the composite asset allocation median return was -26.3%. and used hedge funds of funds as their alpha source. The for the 55 local systems that invested predominantly Madoff scandal at year-end also added to hedge funds’ on their own was: 31.9% Domestic Equity, 11.9% Inter- The median return for the 41 local systems that invested perception problem; although the disgraced financier did national Equity, 1.7% Emerging Markets, 25.7% Fixed totally with PRIT for the entire year was -29.3%, slightly not run a hedge fund, some hedge funds of funds had Income (Domestic and International, including TIPS), better than that of the PRIT Fund itself (-29.5%). Internal allocated money to him. 2.7% High Yield, 9.6% Real Estate, 0.6% Timber, 4.7% cash positions or cash flows, as well as returns from re- Alternative Investments, 5.4% Hedge Funds, 0.9% Bal- maining investment partnerships, may have enhanced or Oil was not the only basic commodity to suffer a drastic anced Funds, 2.1% PRIT Core, and 2.7% Cash. Assets in subtracted from the returns of individual systems relative decline during the second half of 2008. While the stock these systems totaled about $10.5 billion. The composite to PRIT’s basic return. Up until 2008, a fundamental fact prices were on a downward trajectory throughout 2008, asset allocation of these systems is similar to average of institutional investing involving endowment funds, commodities actually rose handsomely during the first asset allocations reported in national surveys of state foundations, and public and private pension funds was half of the year before beginning an ugly decline at and local pension plans. Nevertheless, there is a wide that larger entities had been performing decisively better mid-year. As the financial crisis spread and tipped the divergence in our local systems’ asset allocations com- than smaller ones in recent years. For several years, the world economy into recession, demand for basic materials pared to the composite levels. For instance, allocations to PRIT Fund’s size had enabled it to invest meaningfully and weakened and prices were further impacted as many domestic equity ranged from 9% to 58% and allocations efficiently in a wider range of asset classes than many of institutional investors were forced to liquidate positions to international equity ranged from zero (2 systems) to the local systems, and its clout enabled it to gain access and reduce leverage. The 37% drop in the Dow Jones-AIG 28%. While 25 systems had allocations in excess of 10% to the top tier of managers in these nontraditional asset Commodity Index for the year wiped out all the gains in real estate, ten systems had no explicit exposure to this classes, particularly in alternative investments. 2008 commodity investors had earned over the previous five asset class (some of these had modest exposure through a was a trend-changing year, however, as smaller and years. partial investment in the PRIT Core Fund.) Thirty-three of mid-sized funds generally held up better than their larger the 55 systems had at least some exposure to alternative counterparts. Thus, while the PRIT Fund’s performance Summary investments (and seven others had exposure through in past years was enhanced by its holdings in several If there’s any consolation to the horrors of 2008, it’s partial investment in the PRIT Core Fund), while alloca- asset classes — such as Alternative Investments, Timber, that, in contrast to the situation a year ago when both tions within these systems ranged from less than 1% to Emerging Markets, Hedge Funds, and Real Estate — that stocks and bonds appeared fully priced, there appear to 9%. Thirty-two systems invest in absolute return (hedge provided strong diversification benefits, 2008 was a year be bargains galore at this point. Depending on analysts’ funds). Fifteen systems had allocations to emerging when nearly all asset classes were down. PRIT’s Core expectations for future corporate profits, price-earnings markets, 19 systems had explicit allocations to high yield Fixed Income portfolio was slightly positive for the year, ratios on equities have declined to levels that range from fixed income, and 8 systems invested in timber. but returns from Real Estate (-15.8%), Timber (-17.2%), historically average to well below average. As noted Absolute Return (-19.0% net), and High Yield Bonds above, the attractiveness of investment grade and below At the beginning of 2008, 41 local systems invested all (-23.1%) were very disappointing while International investment grade bonds relative to riskless Treasuries has (or essentially all) of their assets in the PRIT Core Fund. Equity (-42.3%) and Emerging Markets Equity (-55.5%) rarely been greater. Many good values are also likely there During the year, another eight systems joined PRIT, either were major contributors to the Fund’s below-average for the taking in real estate. The timetable for these vari- voluntarily or as a result of Chapter 68. Assets of these 49 peer performance. Since hedge funds had a rare year of ous values proving profitable will depend on the success systems totaled nearly $4.4 billion at year-end. The asset negative returns, PRIT’s Portable Alpha strategy served of the government’s massive effort to rekindle lending, to allocation of that $37.8 billion fund as of December 31, to detract from rather than enhance domestic equity performance.

10 | PERAC ANNUAL REPORT 2008 As has typically been the case over the years, the perfor- consultant and utilize only one investment manager for ranging from -29.8% to -33.1%. These included both small mance of the local systems that invest on their own has substantially all their equity and fixed income assets. These and mid-sized systems, with portfolio sizes ranging from been in line with national public fund medians. The 2008 systems generally had well-above-average cash positions, $17 million to $209 million. They generally had small, if median return (-26.3%) for the non-PRIT local systems several in the range of 20% and one as high as 26%. In any, cash positions and several had above-average equity was within the range of the following public fund universe several cases, the systems made strategic moves during the positions, with as much as 48% in domestic equity and medians: New England Pension Consultants/ICC, -24.8%%; course of the year to decrease their exposure to risky assets 17% in international equity. These systems generally saw Wilshire/TUCS, -24.9%% (-26.2% for funds with assets and increase their holdings of cash. These systems general- investment managers underperform their benchmarks in greater than $5 billion); Mellon Analytical Solutions, ly also had above average allocations to investment-grade several, and in some cases all, asset classes. Three of these -26.8%; and Northern Trust, -26.6%. fixed income, as much as 42% of total portfolio assets in systems were particularly hurt by investment grade fixed some cases. Some of these systems also benefited from income managers who trailed their benchmark by as much The ten local systems with the best performance last year their investment managers registering strong investment as 27% as a result of significant overweighting in corporate registered losses of between -19.3% and -22.5%. They performance relative to their market benchmarks. bonds and underweighting in US Treasuries, the one sector were all among the commonwealth’s smaller systems; that showed appreciation last year. portfolio asset sizes ranged from $7.5 million to $130 Among the 55 non-PRIT systems as of year-end, seven million. Five of these systems do not employ an investment underperformed the PRIT Fund last year, with returns

Massachusetts Contributory Retirement Board Profiles

Introduction

he Board Profile section of the PERAC Annual Re- local budgets. The funded ratio indicates the extent to PERAC is responsible for the post retirement monitor- port provides a detailed assessment of some of which assets cover system liabilities. When the system ing of disabled retirees. One aspect of that task is Tthe important indicators relative to the financial will pay off its unfunded liability and what type of enforcing the earnings limits set forth in Chapter 32. health of the retirement systems. This year’s report funding technique is being used are also noted. PERAC In 2008, PERAC analyzed 15,487 earnings reports, takes on added importance as there appears to be has consistently urged boards to conduct annual 4,207 retirees reported earnings and 186 earned in increasing pressure on policymakers to alter the ben- actuarial valuations in order to provide an up-to-date excess of the statutory limits. An additional 50 retirees efit structure set forth in Chapter 32. The information assessment of the fiscal condition of the system. failed to comply with the reporting requirement. This provided in this report can enable board members to resulted in the recovery of $1,521,554 in excess earn- provide factual comment and advice to policymakers In the actuarial area, PERAC approved 65 new funding ings and $737,061 for non-compliance. One member as various proposals relative to the retirement law are schedules and completed 19 actuarial valuations in returned to work saving an additional $13,374.36 and assessed. Through this and other studies, the Commis- 2008. The valuations complemented the 48 valuations 28 waived their allowance, saving $455,626. sion seeks to provide objective, comprehensive, and performed by private actuaries. The Actuarial Unit also accurate data for use by all interested parties. completed the annual actuarial valuation of the Com- In 2008, PERAC conducted 40 audits of retirement monwealth’s pension liability. Throughout the year, systems and issued 37 audit reports. In addition, 28 In assessing investment performance, PERAC relies PERAC responded to legislative and gubernatorial follow-up audits were issued. The major audit issue on the retirement boards to submit accurate and requests for analysis of legislation and made presenta- addressed in 2008 was retirement system member- complete information about investment activity. tions at several forums. ship data and the definition of regular compensation. PERAC numbers might differ from those provided to In general, boards have made a concentrated effort to a board by its consultant because PERAC measures all In addition to the information detailed in the Profiles, clear up audit findings and this has been reflected in assets, including monies not committed to investment PERAC, as always, has been busy assisting the boards the follow-up reports as well as the regularly sched- management. Asset allocation is once again presented in other areas. In 2008, 817 medical panel requests uled audits. As always, PERAC audit staff conducted in graph form. Due to rounding, asset precentages do were processed and 1,511 comprehensive medical annual seminars on the preparation of the Annual not add to 100% in all cases. The way a board allocates evaluations were conducted. This led to the approval Statement with special emphasis on common audit its assets among the various investment classes avail- of 710 disability applications and 89 accidental death issues. Also, an electronic help desk format was able to it has long been recognized as the prime deter- claims. Sixty-eight medical re-examinations of established to assist board staff during the Annual mining factor in the generation of returns. As always, disability retirees took place and one member was Statement process. actuarial information details the fiscal condition of restored to service. the systems, which can play a direct role in state and

PERAC ANNUAL REPORT 2008 | 11 Composite Investment Profile Commonwealth of Massachusetts Public Employee Retirement Systems and Pension Reserves Investment Trust

Investment Return (2004-2008, 5 Year and 24 Year Averages) INVESTMENT

2008 Return -28.61% 2008 Market Value $47.7 B 2004-2008 (Annualized) 3.13% 1985-2008 (Annualized) 8.94%

Asset Growth (1999-2008) (Market Value in Billions)

12 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Adams 8 Park Street, 3rd Floor Bernard A. Pinsonnault (Chairperson), Cheryl J. Lillie Adams, MA 01220 Mary Beverly, David Clark, Allen Mendel, Board Meeting Phone 413-743-5575 Francis J. Wojtaszek Fourth Tuesday of each month at 4:00 pm Fax 413-743-2815

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 90.4% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 7.50% • Funding Schedule Level • Year Fully Funded 2015 • Unfunded Liability $2.9 M • Total Pension Appropriation (Fiscal 2009) $1.1 M

Active Retired • Number of Members 211 139 • Total Payroll/Benefit $6.0 M $1.4 M • Average Salary/Benefit $28,400 $10,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 11.2 years NA

INVESTMENT

Domestic Equity • Granite Investment Advisors International Equity • EuroPacific Growth Fund Domestic Fixed Income • Boston Private Investors Custodian • State Street Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -21.71% 2008 Target 8.53% 2008 Market Value $20.1 M 2004-2008 (Annualized) .82% 1985-2008 (Annualized) 7.84%

PERAC ANNUAL REPORT 2008 | 13 Town Hall Board Members Board Administrator Amesbury 62 Friend Street Charles Benevento (Chairperson), Sheryl Trezise Amesbury, MA 01913-2825 Michael Basque, Donna Cornoni, Board Meeting Phone 978-388-8131 Michael Cronin, Deborah Ventura Last Thursday of each month at 1:30 pm Fax 978-388-6727

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 65.3% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2025 • Unfunded Liability $20.8 M • Total Pension Appropriation (Fiscal 2009) $2.7 M

Active Retired • Number of Members 292 223 • Total Payroll/Benefit $11.4 M $3.4 M • Average Salary/Benefit $39,000 $15,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 72 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -28.97% 2008 Target 8.39% 2008 Market Value $28.1 M 2004-2008 (Annualized) 1.09% 1985-2008 (Annualized) 7.40%

14 | PERAC ANNUAL REPORT 2008 Town Offices Board Members Board Administrator Andover 36 Bartlet Street James A. Cuticchia (Chairperson), Elena M. Kothman Andover, MA 01810 Elena M. Kothman, Robert J. O’Sullivan, Esq., Board Meeting Phone 978-623-8213 Rodney P. Smith, Anthony K. Stankiewicz, Esq. Last week of each month, day and date vary Fax 978-623-8471

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 73.0% • Date of Last Valuation 01/07 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule 2.3% Increasing • Year Fully Funded 2026 • Unfunded Liability $36.9 M • Total Pension Appropriation (Fiscal 2009) $4.5 M

Active Retired • Number of Members 726 352 • Total Payroll/Benefit $30.5M $6.5 M • Average Salary/Benefit $42,000 $18,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 10.8 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.32% 2008 Target 8.00% 2008 Market Value $66.9 M 2004-2008 (Annualized) -.73% 1985-2008 (Annualized) 7.84%

PERAC ANNUAL REPORT 2008 | 15 869 Massachusetts Avenue, Room 102 Board Members Board Administrator Arlington Arlington, MA 02476-4701 John J. Bilafer (Chairperson), Richard Greco Phone 781-316-3370 Kenneth Hughes, Richard Keshian, Ruth Board Meeting Fax 781-316-3379 Lewis, Ken Steele Last Thursday of the month at 4:30 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 75.3% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.75% • Funding Schedule 2.45% Increasing • Year Fully Funded 2019 • Unfunded Liability $47.4 M • Total Pension Appropriation (Fiscal 2009) $7.2 M

Active Retired • Number of Members 707 613 • Total Payroll/Benefit $27.8 M $12.8 M • Average Salary/Benefit $39,300 $20,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 49 74 • Average Service 11.3 years NA

INVESTMENT

Alternative Investments • Wilshire Private Markets Fund IV & VII General Allocation • PRIT Custodian • State Street

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -30.99% 2008 Target 8.39% 2008 Market Value $96.5 M 2004-2008 (Annualized) -.47% 1985-2008 (Annualized) 8.02%

16 | PERAC ANNUAL REPORT 2008 584 Main Street, Room 3 Board Members Board Administrator Athol Athol, MA 01331 James W. Wright (Chairperson), Lynne Barilone Phone 978-249-2642 Andrew Belloli, Gene A. Ferrari, Jr., Board Meeting Fax 978-249-2864 Brian Stoddard, Joseph Wojtkowski Last Wednesday of each month at 9:00 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 53.3% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2027 • Unfunded Liability $14.6 M • Total Pension Appropriation (Fiscal 2009) $1.6 M

Active Retired • Number of Members 208 141 • Total Payroll/Benefit $6.1 M $1.8 M • Average Salary/Benefit $29,300 $12,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 71 • Average Service 9.4 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -28.10% 2008 Target 8.39% 2008 Market Value $13.0 M 2004-2008 (Annualized) -.04% 1985-2008 (Annualized) 6.60%

PERAC ANNUAL REPORT 2008 | 17 77 Park Street Board Members Board Administrator Attleboro Attleboro, MA 02703 Gary S. Sagar (Chairperson), Leslie J. Ring Phone 508-223-2222, ext. 3201 Richard V. Boucher, James Castro, Board Meeting Fax 508-223-2063 Vivian Dugas, Deborah C. Gould Varies, usually the last week in the month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 75.5% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.3% Increasing • Year Fully Funded 2022 • Unfunded Liability $29.2 M • Total Pension Appropriation (Fiscal 2009) $4.6 M

Active Retired • Number of Members 671 405 • Total Payroll/Benefit $24.2 M $6.9 M • Average Salary/Benefit $36,100 $17,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Domestic Equity • Boston Advisors, Inc. • Daruma Asset Management, Inc. • RhumbLine S&P 500 Pooled Index Fund International Equity • Artio International Equity Fund II Domestic Fixed Income • Pyramis Core Plus Commingled Pool Asset Growth (1999-2008) (Market Value in Millions) Real Estate • INVESCO Core Real Estate Fund • INVESCO IRT Equity Real Estate Securities Fund Absolute Return • PRIT Consultant • Segal Advisors Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -27.42% 2008 Target 9.00% 2008 Market Value $68.1 M 2004-2008 (Annualized) 2.15% 1985-2008 (Annualized) 8.31%

18 | PERAC ANNUAL REPORT 2008 750 Attucks Lane Board Members Board Administrator Barnstable Hyannis, MA 02601 E. Mark Zielinski (Chairperson), Debra L. Cohen County Phone 508-775-1110 Mary Pat Flynn, Mark Foley, Board Meeting Fax 508-775-1344 C. Randall Sherman, Karen V. Walden Fourth Tuesday of each month at 9:00 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 62.6% • Date of Last Valuation 01/07 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $308.5 M • Total Pension Appropriation (Fiscal 2009) $36.9 M

Active Retired • Number of Members 5,314 2,267 • Total Payroll/Benefit $231.4 M $37.0 M • Average Salary/Benefit $43,600 $16,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 NA • Average Service 9.8 years NA

INVESTMENT

Real Estate • Allegis Value Trust (AVT) Fund • Intercontinental Real Estate Investment Fund IV, LLC General Allocation • PRIT Consultant • Segal Advisors

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.13% 2008 Target 8.39% 2008 Market Value $421.4 M 2004-2008 (Annualized) 1.11% 1985-2008 (Annualized) 6.72%

PERAC ANNUAL REPORT 2008 | 19 P.O. Box 56, Town Hall Board Members Board Administrator Belmont 455 Concord Avenue Rosario A. Sacco (Chairperson), Marion E. Coté Belmont, MA 02478-0900 Thomas F. Gibson, Barbara E. Hagg, Board Meeting Phone 617-484-8560 Peter Palandjian, Walter D. Wellman Varies Fax 617-993-2793

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 55.3% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Inceasing • Year Fully Funded 2025 • Unfunded Liability $50.2 M • Total Pension Appropriation (Fiscal 2009) $5.0 M

Active Retired • Number of Members 443 339 • Total Payroll/Benefit $19.0 M $7.8 M • Average Salary/Benefit $42,800 $23,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 NA • Average Service 9.3 years NA

INVESTMENT

Domestic Equity • Atlanta Capital Management Company, LLC • Wellington Trust Co.-CIF Large Cap Research Value Fund International Equity • Artio International Equity Trust Fund Domestic Fixed Income • Frontegra Total Return Bond Fund Asset Growth (1999-2008) (Market Value in Millions) International Fixed Income • Delaware Pooled Trust Global Fixed Income Portfolio General Allocation • PRIT Alternative Investments • Dover Street VII, L.P. • PRIT Absolute Return • PRIT Consultant • New England Pension Consultants Asset Allocation (12/31/08) Custodian • State Street

2008 Return -22.54% 2008 Target 9.30% 2008 Market Value $46.8 M 2004-2008 (Annualized) 3.74% 1985-2008 (Annualized) 8.81%

20 | PERAC ANNUAL REPORT 2008 29 Dunham Mall Board Members Board Administrator Berkshire Pittsfield, MA 01201 Michael Ovitt (Chairperson), Sheila LaBarbera County Phone 413-499-1981 Patricia D. Carlino, Deborah Cotter, Board Meeting Fax 413-445-7990 Gerald Doyle, Jr., Peter Menard Fourth Thursday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 82.0% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2016 • Unfunded Liability $25.6 M • Total Pension Appropriation (Fiscal 2009) $6.1 M

Active Retired • Number of Members 1,227 634 • Total Payroll/Benefit $33.9 M $6.9 M • Average Salary/Benefit $27,600 $10,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 10 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.08% 2008 Target 8.39% 2008 Market Value $105.0 M 2004-2008 (Annualized) 3.53% 1985-2008 (Annualized) 8.72%

PERAC ANNUAL REPORT 2008 | 21 City Hall Board Members Board Administrator Beverly 191 Cabot Street John F. Lane, Jr. (Chairperson), Barbara Wells Beverly, MA 01915 Crystal Atherton, Carol I. Augulewicz, Board Meeting Phone 978-605-2370 John Dunn, Clark Mitchell Last Thursday of each month Fax 978-921-8582

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 60.6% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2023 • Unfunded Liability $56.4 M • Total Pension Appropriation (Fiscal 2009) $7.0 M

Active Retired • Number of Members 605 448 • Total Payroll/Benefit $22.7 M $9.3 M • Average Salary/Benefit $37,500 $20,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 10.4 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.41% 2008 Target 8.39% 2008 Market Value $57.6 M 2004-2008 (Annualized) -.04% 1985-2008 (Annualized) 8.10%

22 | PERAC ANNUAL REPORT 2008 800 Randolph Street Board Members Board Administrator Blue Hills Canton, MA 02021 Charles Gisondi (Chairperson), Scott Ahern, David J. Sullivan Regional Phone 781-828-5800 Patricia Brooks, Virginia Frew, John Wieliczki Board Meeting Fax 781-828-0794 Last Tuesday of each month at 8:15 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 78.0% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2022 • Unfunded Liability $2.1 M • Total Pension Appropriation (Fiscal 2009) $0.4 M

Active Retired • Number of Members 45 48 • Total Payroll/Benefit $1.8 M $0.6 M • Average Salary/Benefit $40,500 $12,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 50 77 • Average Service 12.3 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -28.25% 2008 Target 8.39% 2008 Market Value $5.1 M 2004-2008 (Annualized) 3.68% 1985-2008 (Annualized) 8.28%

PERAC ANNUAL REPORT 2008 | 23 City Hall Board Members Board Administrator Boston Room 816 John Perkins (Chairperson), Sally D. Glora, Kathleen Kiely-Becchetti Boston, MA 02201 Sean Kelly, Michael W. McLaughlin, Board Meeting Phone 617-635-4305 Mitchell Weiss Monthly, date varies Fax 617-635-4318

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.6% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2023 • Unfunded Liability $2.1 B • Total Pension Appropriation (Fiscal 2009) $244.3 M

Active Retired • Number of Members 21,748 13,939 • Total Payroll/Benefit $1.3 B $371.1 M • Average Salary/Benefit $61,100 $26,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 NA • Average Service 12.8 years NA

INVESTMENT

Domestic Equity • INVESCO Core Real Estate Fund • Boston Company • J.P. Morgan Special Situation Property Fund • Enhanced Investment Technologies (INTECH) • LaSalle Income & Growth Fund III & V • J&W Seligman & Company, Inc. • Prudential Real Estate Investors (PRISA) Fund • RhumbLine S&P 500 Pooled Index Fund • Prudential Real Estate Senior Housing Partners III • SSgA Russell 2000 Growth Fund • Transwestern Mezzanine Realty Partners III • SSgA Russell 3000 Index SL Fund • Urdang Value Added Fund II • SSgA Russell 3000 Index Plus SL Fund Alternative Investments • Westfield Capital Management Company, LLC • Ascent Venture Partners III, L.P. Asset Growth (1999-2008) (Market Value in Billions) • Zevenbergen Capital • Audax Mezzanine Fund, L.P. International Equity • Audax Mezzanine Fund II • Alliance Bernstein Emerging Markets Value • Blue Point Capital Partners, L.P. Account • Blue Point Capital Partners II, L.P. • Boston Company • Boston Millennia Partners II, L.P. • Fisher Investments Foreign Equity Fund • Commonwealth Capital Ventures III • PanAgora Asset Management • European Strategic Partners I, L.P. • Vontobel Asset Management • Evercore Capital Partners II, L.P. • Evercore METC Capital Partners II, L.P. Domestic Fixed Income • J.W. Childs Equity Partners III, L.P. • Fountain Capital Management, LLC • Lexington Capital Partners V & VI, L.P. • Loomis Sayles Senior Loan Fund, LLC • Lexington Middle Market Investors, L.P. • Richmond Capital Management • Lexington Middle Market Investors II, L.P. • SSgA Passive Bond Market Index SL Fund • Monitor Clipper Equity Partners, L.P. Asset Allocation (12/31/08) • Wells Capital Management, Inc. • MPM BioVentures III & IV, L.P. International Fixed Income • New England Growth Fund I & II, L.P. • Loomis, Sayles & Company, L.P. • Prudential Capital Partners, L.P. Real Estate • Prudential Capital Partners II • AEW Partners V, L.P. • Sanderling Venture Partners V & VI • Arsenal Real Estate Fund IA, L.P. • SCP Private Equity Partners II, L.P. • Capmark Investments / GMAC Commercial • Siguler Guff Distressed Opportunities Fund Realty Partners II, L.P. • Siguler Guff Distressed Opportunities Fund II & III • Hearthstone-MSII Homebuilding Investors • Standard Life European Strategic Partners Fund 2006 • Hearthstone Multi-State Residential Value • Sterling Capital Partners, L.P. Added Fund III • Sterling Capital Partners II & III • Heitman Real Estate Fund IV • Sterling Venture Partners, LLC

24 | PERAC ANNUAL REPORT 2008 Boston (cont.)

INVESTMENT (CONT.) • T. H. Lee Equity Partners, L.P. Consultant • TH Lee Putnam Parallel Ventures, L.P. • New England Pension Consultants • Thomas H. Lee Equity Advisors IV, LLC Custodian • Thomas H. Lee Equity Fund V & VI, L.P. • State Street • Thomas Weisel Global Growth Partners II • Vanguard VI Annex Fund, L.P. • Vanguard VII, L.P. • Venture Lending & Leasing III, IV, & V Hedge Fund • Arden Endowment Advisors Fund • Federal Street Associates Offshore Fund, Ltd. • GAM U.S. Institutional Diversity Fund • IVY Asset Mgmt—Maplewood Associates II, L.P. • Mesirow Absolute Return Hub Fund • Permal Fixed Income Holdings N.V.

2008 Return -24.21% 2008 Target 8.00% 2008 Market Value $3.4 B 2004-2008 (Annualized) 3.20% 1985-2008 (Annualized) 8.71%

PERAC ANNUAL REPORT 2008 | 25 74 Pond Street Board Members Board Administrator Braintree Braintree, MA 02184 Gerald J. Kenny, Jr. (Chairperson), Jeanne Martineau-Fernald Phone 781-794-8210 and 8211 Phyllis DiPalma, Edward Dowd, Board Meeting Fax 781-794-8407 Paul McSoley, Frederick Viola Fourth Wednesday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 74.7% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.88% • Funding Schedule 2.0% Increasing • Year Fully Funded 2026 • Unfunded Liability $47.9 M • Total Pension Appropriation (Fiscal 2009) $6.3 M

Active Retired • Number of Members 744 509 • Total Payroll/Benefit $33.9 M $11.0 M • Average Salary/Benefit $45,600 $21,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 74 • Average Service 11.7 years NA

INVESTMENT

Domestic Equity • SSgA S&P 500 Flagship Fund Domestic Fixed Income • Loomis Sayles Investment Grade Fixed Income Fund • SSgA Passive Bond Market Index SL Fund International Equity • Boston Company Non-US Value Equity Fund Real Estate Asset Growth (1999-2008) (Market Value in Millions) • PRIT General Allocation • PRIT Absolute Return • PRIT Consultant • New England Pension Consultants Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -21.35% 2008 Target 8.00% 2008 Market Value $108.6 M 2004-2008 (Annualized) 2.99% 1985-2008 (Annualized) 8.45%

26 | PERAC ANNUAL REPORT 2008 County Crossing Board Members Board Administrator Bristol 645 County Street Kevin J. Finnerty (Chairperson), John L. Walsh County Taunton, MA 02780 William M. Downey, Edward F. Iacaponi, Board Meeting Phone 508-824-4029 Stephen J. Rivard, Christopher T. Saunders Last Thursday of each month Fax 508-880-8749

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 65.8% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2023 • Unfunded Liability $203.1 M • Total Pension Appropriation (Fiscal 2009) $28.7 M

Active Retired • Number of Members 4,022 1,956 • Total Payroll/Benefit $147.0 M $30.3 M • Average Salary/Benefit $36,500 $15,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 72 • Average Service NA NA

INVESTMENT

Domestic Equity Alternative Investments • Earnest Partners, LLC • BlackRock Diversified Private Equity Program III • INTECH Large Cap Growth Equity Fund • Charles River Partnership VII, VIII, IX, X, & XI • LSV Asset Management • DCM Private Equity Fund II • Rice Hall James & Associates • DN Partners, L.P. • UBS US Large Cap Equity Fund • DN Partners II, L.P. • New England Growth Fund II, L.P. International Equity • Senior Tour Players Fund I • Arrowstreet Capital, L.P. • Lazard Emerging Markets Equity Portfolio Absolute Return Asset Growth (1999-2008) (Market Value in Millions) • Voyageur International Fund • PRIT Domestic Fixed Income Consultant • Income Research & Management • RogersCasey • PIMCO Diversified Real Return Fund Custodian • SSgA Passive Bond Market Index SL Fund • State Street Global Fixed Income • Delaware Pooled Trust Global Fixed Income Portfolio Real Estate • BlackRock Apartment Value Fund III, L.P. • Hancock ForesTree IV & V, L.P. • Hancock Timberland IX Fund Asset Allocation (12/31/08) • New Boston Institutional Fund, L.P. VI • RREEF America REIT II • SSgA Tuckerman / Residential Income and Value Added (RIVA) Fund • TA Realty Associates Fund VII

2008 Return -26.22% 2008 Target 8.50% 2008 Market Value $329.5 M 2004-2008 (Annualized) 1.40% 1985-2008 (Annualized) 8.39%

PERAC ANNUAL REPORT 2008 | 27 15 Christy’s Drive Board Members Board Administrator Brockton Suite 2 William R. Farmer (Chairperson), Harold P. Hanna, Jr. Brockton, MA 02301-1813 Heidi A. Chuckran, Stephen Frederick, Board Meeting Phone 508-580-7847 Edward P. Mack, William E. Parlow Usually a day in last two weeks of month Fax 508-559-0559

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 89.7% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 1.5% Increasing • Year Fully Funded 2018 • Unfunded Liability $44.9 M • Total Pension Appropriation (Fiscal 2009) $10.9 M

Active Retired • Number of Members 1,829 1,247 • Total Payroll/Benefit $74.4 M $28.2 M • Average Salary/Benefit $40,700 $22,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Domestic Equity • Intercontinental Real Estate • Boston Company Asset Management Investment Fund IV, LLC • D.E. Shaw Investment Management • New Boston Institutional Fund, L.P. VI • ICC Capital Management, Inc. • SSgA Tuckerman / Residential Income and Value- • ICON Advisers, Inc. Added (RIVA) Fund • Independence Investments LLC • TA Realty Associates Fund VI • Wellington Trust Co.-CIF Mid Cap Growth Alternative Investments Portfolio • Ascent Venture Partners II, III, IV, & V L.P. • Valley Forge Asset Management Corporation • Boston Capital Ventures II & III Asset Growth (1999-2008) (Market Value in Millions) • Voyageur Asset Management Inc. • Charlesbank Equity Fund V International Equity • HealthPoint Partners, L.P. • Acadian International Small Cap Fund • INVESCO Non-U.S. Partnership Fund III, L.P. • Boston Company Emerging Markets Pooled Fund • Levine Leichtman Capital Partners Deep Value • Voyageur International Fund Fund, L.P. • New England Growth Fund II, L.P. Domestic Fixed Income • Loomis, Sayles & Company, L.P. Consultant • Voyageur Asset Management Inc. • Evaluation Associates, LLC International Fixed Income Custodian • Delaware Pooled Trust International Fixed • State Street Income Portfolio • Lazard Emerging Income Fund

Asset Allocation (12/31/08) Real Estate • Arsenal Real Estate Fund IA, L.P. • BlackRock Apartment Value Fund III, L.P. • Duff & Phelps Real Estate Securities Trust

2008 Return -29.26% 2008 Target 8.00% 2008 Market Value $267.5 M 2004-2008 (Annualized) .95% 1985-2008 (Annualized) 8.44%

28 | PERAC ANNUAL REPORT 2008 Public Health Building, Ground Floor Board Members Board Administrator Brookline 11 Pierce Street James J. Riley (Chairperson), Gary Altman, Frank J. Zecha Brookline, MA 02445 Stephan E. Cirillo, Judith A. Haupin, Board Meeting Phone 617-730-2028 Robert J. Ward Varies Fax 617-730-2298

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.3% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 4.0% Increasing • Year Fully Funded 2025 • Unfunded Liability $108.6 M • Total Pension Appropriation (Fiscal 2009) $11.9 M

Active Retired • Number of Members 1,413 835 • Total Payroll/Benefit $57.1 M $19.3 M • Average Salary/Benefit $40,400 $23,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 42 NA • Average Service 10.5 years NA

INVESTMENT

Domestic Equity • HarbourVest Partners VII - Mezzanine & • Champlain Small Cap Fund, LLC Distressed Debt Fund L.P. • Earnest Partners, LLC • HarbourVest Partners VII - Venture Partnership • Enhanced Investment Technologies (INTECH) Fund L.P. • Rothschild Small Cap Fund • HarbourVest Partners VIII - Buyout Fund L.P. • SSgA S&P 500 Flagship Fund • HarbourVest Partners VIII - Mezzanine & Distressed Debt Fund L.P. International Equity • HarbourVest Partners VIII - Venture Fund L.P. • Driehaus International Small Cap Growth Fund • INVESCO Non-U.S. Partnership Fund III, L.P. • Legg Mason Emerging Markets Trust CI • INVESCO U.S. Buyout & Expansion Capital Asset Growth (1999-2008) (Market Value in Millions) • SSgA Daily EAFE Securities Lending Fund Partnership Fund III, L.P. • Thornburg International Equity (Q.P.), LLC • INVESCO Venture Partnership Fund III & V, L.P. • Wentworth, Hauser, and Violich Absolute Return Domestic Fixed Income • PRIT • Loomis Sayles Institutional High Income Fund • SSgA Passive Bond Market Index Fund General Allocation • SSgA Treasury Inflation Protected Securities • PRIT (TIPS) Fund Consultant Real Estate • Meketa Investment Group • AEW Value Investors II, L.P. Custodian • Hancock Timberland IX Fund • State Street • PRIT • Sustainable Woodlands Fund II, L.P. Asset Allocation (12/31/08) Alternative Investments • HarbourVest Partners VII - Buyout Partnership Fund L.P.

2008 Return -27.98% 2008 Target 8.25% 2008 Market Value $160.9 M 2004-2008 (Annualized) 1.05% 1985-2008 (Annualized) 8.35%

PERAC ANNUAL REPORT 2008 | 29 255 Bent Street Board Members Board Administrator Cambridge 3rd Floor Bradford P. Tenney (Chairperson), Ellen K. Philbin Cambridge, MA 02141 Nadia Chamblin-Foster, Michael P. Gardner, Board Meeting Phone 617-868-3401 Anne C. Leduc, James H. Monagle First Monday of every month Fax 617-868-3477

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 92.0% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.50% • Funding Schedule 2.1% Increasing • Year Fully Funded 2013 • Unfunded Liability $67.0 M • Total Pension Appropriation (Fiscal 2009) $26.7 M

Active Retired • Number of Members 4,119 1,756 • Total Payroll/Benefit $235.8 M $40.3 M • Average Salary/Benefit $57,200 $23,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 NA • Average Service 10.6 years NA

INVESTMENT

Domestic Equity Alternative Investments • Columbia Management Group, Inc. • Ascent Venture Partners II, III, IV, & V L.P. • Copper Rock Capital Partners, LLC • BlackRock Diversified Private Equity Program II • Loomis, Sayles & Company, L.P. • Charles River Partnership VII & VIII • Marvin & Palmer Associates, Inc. • Hamilton Lane Private Equity Fund VI, LP • MFS Institutional Advisors, Inc. Absolute Return • Pyramis Large Cap Core 130/30 Fund • PRIT • SSgA S&P 500 Flagship Fund • WEDGE Capital Management, LLP Consultant • Segal Advisors Asset Growth (1999-2008) (Market Value in Millions) International Equity • Lazard Emerging Markets Equity Portfolio Custodian • SSgA MSCI-EAFE Index Securities Lending Fund • State Street • Voyageur International Fund Domestic Fixed Income • Income Research & Management • MacKay-Shields Financial Corporation • Pyramis Broad Market Duration Portfolio International Fixed Income • Brandywine Global Fixed Income Fund Real Estate • AEW Partners V, L.P. Asset Allocation (12/31/08) • Carey Corporate Properties Associates Fund 15 • Hancock ForesTree V Fund • PRIT • UBS (US) Trumbull Property Fund LP

2008 Return -28.61% 2008 Target 9.00% 2008 Market Value $561.7 M 2004-2008 (Annualized) 1.24% 1985-2008 (Annualized) 8.81%

30 | PERAC ANNUAL REPORT 2008 City Hall, Room 214 Board Members Board Administrator Chelsea 500 Broadway Joseph M. Siewko (Chairperson), David Pickering Chelsea, MA 02150 Edward M. Dunn, Richard A. Incerto, Board Meeting Phone 617-466-4230 Frederick A. Nowicki, Carolyn M. Russo Generally last Thursday of each month at Fax 617-466-4234 9:00 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 47.6% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 3.5% Increasing • Year Fully Funded 2025 • Unfunded Liability $68.4 M • Total Pension Appropriation (Fiscal 2009) $7.9 M

Active Retired • Number of Members 692 384 • Total Payroll/Benefit $27.0 M $7.0 M • Average Salary/Benefit $38,900 $18,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 73 • Average Service 11.2 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.18% 2008 Target 8.39% 2008 Market Value $52.4 M 2004-2008 (Annualized) 2.95% 1985-2008 (Annualized) 7.32%

PERAC ANNUAL REPORT 2008 | 31 City Hall Board Members Board Administrator Chicopee Market Square Maxwell S. Mackechnie (Chairperson), Susana Baltazar Chicopee, MA 01013-2685 Debra Boronski, James R. Montcalm, Board Meeting Phone 413-594-1542 Timothy O’Shea, Sharyn A. Riley Second Thursday of each month at 2:00 pm Fax 413-594-1544

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 65.7% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.25% Increasing • Year Fully Funded 2021 • Unfunded Liability $94.6 M • Total Pension Appropriation (Fiscal 2009) $13.0 M

Active Retired • Number of Members 1,196 825 • Total Payroll/Benefit $46.4 M $14.8 M • Average Salary/Benefit $38,800 $18,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

Domestic Equity Absolute Return • SEI Institutional Investments Trust Large Cap • PRIT Disciplined Equity Fund Custodian • SEI Institutional Investments Trust Small/Mid • SEI Private Trust Company Cap Equity Fund International Equity • SEI Institutional Investments Trust World Equity Ex-US Fund

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • SEI Institutional Investments Trust Core Fixed Income Fund • SEI Institutional Investments Trust High Yield Bond Fund International Fixed Income • SEI Institutional Investments Trust Emerging Market Bond Fund Real Estate • BlackRock Apartment Value Fund III, L.P. • PRIT Alternative Investments • SEI Global Private Equity Fund II (2007), L.P. Asset Allocation (12/31/08) • SEI Structured Credit Fund, L.P. Hedge Fund • SEI Offshore Opportunities Fund II, Ltd.

2008 Return -29.84% 2008 Target 9.00% 2008 Market Value $108.8 M 2004-2008 (Annualized) -.18% 1985-2008 (Annualized) 7.54%

32 | PERAC ANNUAL REPORT 2008 242 Church Street Board Members Board Administrator Clinton Clinton, MA 01510 John M. McNamara (Chairperson), Patricia Hazel Phone 978-365-4118 Paul B. Cherubini, Michael P. DiGisi, Board Meeting Fax 978-612-0215 George Kittredge, Diane L. Magliozzi Generally the last Tuesday of each month at 4:30 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 66.3% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 3.0% Increasing • Year Fully Funded 2028 • Unfunded Liability $12.3 M • Total Pension Appropriation (Fiscal 2009) $1.7 M

Active Retired • Number of Members 251 99 • Total Payroll/Benefit $8.5 M $1.4 M • Average Salary/Benefit $33,900 $14,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 74 • Average Service 10.7 years NA

INVESTMENT

Domestic Equity • SSgA Active U.S. Large Cap Value Fund • SSgA S&P 500 Flagship Fund • SSgA S&P 500 Flagship Non-Lending Fund International Equity • SSgA All International Allocation Common Trust Fund Domestic Fixed Income Asset Growth (1999-2008) (Market Value in Millions) • PRIT Real Estate • PRIT Absolute Return • PRIT Consultant • Trust Advisory Group, Ltd. Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -31.97% 2008 Target 8.44% 2008 Market Value $20.0 M 2004-2008 (Annualized) 1.30% 1985-2008 (Annualized) 7.02%

PERAC ANNUAL REPORT 2008 | 33 P. O. Box 535 Board Members Board Administrator Concord 22 Monument Square Peter J. Fulton (Chairperson), Linda Boucher Concord, MA 01742-0535 Gail Eagen-Henry, Anthony T. Logalbo, Board Meeting Phone 978-318-3066 Arnold Roth, Brian J. Whitney Last Tuesday of each month Fax 978-318-3093

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 96.1% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.75% • Funding Schedule Level • Year Fully Funded 2011 • Unfunded Liability $3.7 M • Total Pension Appropriation (Fiscal 2009) $3.0 M

Active Retired • Number of Members 461 253 • Total Payroll/Benefit $21.3 M $4.4 M • Average Salary/Benefit $46,200 $17,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 11.3 years NA

INVESTMENT

Domestic Equity • Columbia Disciplined Value Fund • Frank Russell Equity I Fund International Equity • Frank Russell International Fund Domestic Fixed Income • Columbia Management Group, Inc. Alternative Investments Asset Growth (1999-2008) (Market Value in Millions) • PRIT General Allocation • PRIT Custodian • Bank of America

Asset Allocation (12/31/08)

2008 Return -23.93% 2008 Target 7.76% 2008 Market Value $70.5 M 2004-2008 (Annualized) 2.38% 1985-2008 (Annualized) 8.15%

34 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Danvers 1 Sylvan Street Leonard A. Marshall (Chairperson), Susan Little Danvers, MA 01923 Robert J. Cyr, Dana M. Hagan, Board Meeting Phone 978-777-0001, Ext. 3044 Charles Levasseur, Wayne P. Marquis Last Wednesday of each month at 3:00 pm Fax 978-762-0264

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 71.3% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.25% • Funding Schedule 3.5% Increasing • Year Fully Funded 2024 • Unfunded Liability $32.2 M • Total Pension Appropriation (Fiscal 2009) $3.8 M

Active Retired • Number of Members 453 405 • Total Payroll/Benefit $20.4 M $7.0 M • Average Salary/Benefit $45,000 $17,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

Domestic Equity • Fidelity Spartan 500 Index Fund • Mount Lucas US Focused Equity Strategy • NWQ Investment Management Company, LLC • RhumbLine Russell 1000 Growth Pooled Index Fund Domestic Fixed Income • Wellington Trust Co.-CIF II Core Bond Plus Portfolio Asset Growth (1999-2008) (Market Value in Millions) International Equity • GlobeFlex International Small Cap Equity Fund • PRIT Real Estate • BPG Investment Partnership VIII, L.P. • BPG Investment Partnership VIIIA, L.P. Emerging Markets • PRIT Absolute Return • PRIT Consultant • Morgan Stanley Institutional Consulting Asset Allocation (12/31/08) Custodian • State Street

2008 Return -27.15% 2008 Target 8.25% 2008 Market Value $60.2 M 2004-2008 (Annualized) .38% 1985-2008 (Annualized) 7.43%

PERAC ANNUAL REPORT 2008 | 35 202 Bussey Street Board Members Board Administrator Dedham Suite 101 John W. Fontaine, Jr., John (Rosco) Maloney, Lynn M. Carley Dedham, MA 02026 Mariellen Murphy, Ronald Pucci, June Rosado Board Meeting Phone 781-326-7693 Third Wednesday of each month Fax 781-329-4123

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 92.0% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2012 • Unfunded Liability $7.9 M • Total Pension Appropriation (Fiscal 2009) $3.4 M

Active Retired • Number of Members 432 289 • Total Payroll/Benefit $18.7 M $5.7 M • Average Salary/Benefit $43,200 $19,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.42% 2008 Target 8.39% 2008 Market Value $67.1 M 2004-2008 (Annualized) 3.59% 1985-2008 (Annualized) 9.35%

36 | PERAC ANNUAL REPORT 2008 9 Airport Road, Suite 1 Board Members Board Administrator Dukes Vineyard Haven, MA 02568 Noreen Mavro Flanders (Chairperson), Kelly McCracken County Phone 508-696-3846 Jeffrey S. Manter, Cynthia Schilling, Board Meeting Fax 508-696-3847 Roger Wey, Sharon Willoughby First Tuesday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 64.6% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2023 • Unfunded Liability $29.3 M • Total Pension Appropriation (Fiscal 2009) $4.2 M

Active Retired • Number of Members 672 209 • Total Payroll/Benefit $26.3 M $3.5 M • Average Salary/Benefit $39,100 $16,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 NA • Average Service 7.9 years NA

INVESTMENT

Domestic Equity • Navellier & Associates, Inc. • Vanguard Value Index Fund International Equity • PRIT Domestic Fixed Income • PRIT Real Estate Asset Growth (1999-2008) (Market Value in Millions) • PRIT General Allocation • PRIT Consultant • Dahab Associates Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -23.83% 2008 Target 8.00% 2008 Market Value $49.9 M 2004-2008 (Annualized) 2.80% 1985-2008 (Annualized) 6.94%

PERAC ANNUAL REPORT 2008 | 37 199 Northhampton Street, Front Board Members Board Administrator Easthampton Easthampton, MA 01027 James P. Dunham (Chairperson), Tina Schneider Phone 413-203-1307 Donald LaPlante, Thomas Newton, Board Meeting Fax 413-203-1308 Joanne E. Slattery, Mayor Michael Tautznik Fourth Tuesday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 77.7% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2021 • Unfunded Liability $9.2 M • Total Pension Appropriation (Fiscal 2009) $2.0 M

Active Retired • Number of Members 246 122 • Total Payroll/Benefit $8.6 M $1.9 M • Average Salary/Benefit $35,100 $15,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 71 • Average Service 11.6 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.32% 2008 Target 8.39% 2008 Market Value $22.8 M 2004-2008 (Annualized) 3.62% 1985-2008 (Annualized) 7.74%

38 | PERAC ANNUAL REPORT 2008 491 Maple Street Board Members Board Administrator Essex Suite 202 Timothy A. Bassett (Chairperson), Timothy A. Bassett Regional Danvers, MA 01923-4025 Roberta Josephson, William P. Martineau, Board Meeting Phone 978-739-9151 Glenn C. Morse, Katherine O’Leary Generally the last Monday of each month Fax 978-750-0745

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.7% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $143.8 M • Total Pension Appropriation (Fiscal 2009) $17.0 M

Active Retired • Number of Members 3,139 1,568 • Total Payroll/Benefit $106.7 M $24.7 M • Average Salary/Benefit $34,000 $15,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 NA • Average Service 9.2 years NA

INVESTMENT

Domestic Equity Alternative Investments • Analytic Core Equity Plus Fund • Ascent Venture Partners III, IV, & V L.P. • Daruma Asset Management, Inc. • Boston Millennia Partners, L.P. • Perimeter Capital Management • Boston Millennia Partners II, L.P. • Victory Diversified Equity Fund • Levine Leichtman Capital Partners III, L.P. • Voyageur Large Cap Value Fund • MTDC Commonwealth Fund Investment • Wellington Trust Co.-CIF Research Equity Program II Portfolio • MTDC Heritage Fund • BlackRock Investment Management/ Vesey International Equity Street Fund IV (ERISA), L.P. Asset Growth (1999-2008) (Market Value in Millions) • Voyageur International Fund • Wellington Trust Co.-CIF International Growth Hedge Fund Portfolio • Pinehurst Partners, L.P. Domestic Fixed Income Absolute Return • Loomis Sayles Institutional High Income Fund • PRIT • Loomis Sayles Multisector Full Discretion Trust Consultant • OFI Institutional Asset Management • Segal Advisors Real Estate Custodian • BlackRock Apartment Value Fund III, L.P. • State Street • BlackRock Granite Property Fund • Intercontinental Real Estate Investment Fund III, LLC • Principal Green Property Fund I, L.P. Asset Allocation (12/31/08) • PRIT • Sentinel Realty Partners IV • TA Realty Associates Fund IX

2008 Return -33.05% 2008 Target 9.00% 2008 Market Value $209.1 M 2004-2008 (Annualized) -.12% 1985-2008 (Annualized) 8.09%

PERAC ANNUAL REPORT 2008 | 39 City Hall Board Members Board Administrator Everett 484 Broadway, Room 30 Ronald V. D’Onofrio (Chairperson), Robert Shaw Everett, MA 02149 Peter Cocciardi, Lawrence DeCoste, Board Meeting Phone 617-394-2310 Harold J. Mayo, William Pierce Last Wednesday of the month at 9:00 am Fax 617-381-7016

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 36.9% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2026 • Unfunded Liability $99.1 M • Total Pension Appropriation (Fiscal 2009) $9.6 M

Active Retired • Number of Members 665 569 • Total Payroll/Benefit $31.0 M $10.1 M • Average Salary/Benefit $46,600 $17,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 75 • Average Service 10.3 years NA

INVESTMENT

Alternative Investments • New England Growth Fund II, L.P. General Allocation • PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.73% 2008 Target 8.39% 2008 Market Value $44.1 M 2004-2008 (Annualized) 1.98% 1985-2008 (Annualized) 7.91%

40 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Fairhaven 40 Centre Street Anne M. Carreiro, Earl M. Faunce, Mary Sturgeon Fairhaven, MA 02719 Jeffrey Osuch, Joyce Shepard, Board Meeting Phone 508-979-4020 Christine Tetreault Fourth Monday of each month at 8:30 am Fax 508-993-9486

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 84.2% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.15% Increasing • Year Fully Funded 2017 • Unfunded Liability $7.6 M • Total Pension Appropriation (Fiscal 2009) $1.9 M

Active Retired • Number of Members 279 173 • Total Payroll/Benefit $10.1 M $2.4 M • Average Salary/Benefit $36,300 $13,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 72 • Average Service 10.7 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.40% 2008 Target 8.39% 2008 Market Value $28.7 M 2004-2008 (Annualized) 3.52% 1985-2008 (Annualized) 9.10%

PERAC ANNUAL REPORT 2008 | 41 30 Third Street Board Members Board Administrator Fall River Suite 301 Kevin Almeida, David Machado, Christine Tetreault Fall River, MA 02720 Mark Nassiff, Jr., Arthur Viana Board Meeting Phone 508-646-9120 Varies Fax 508-646-9123

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 57.1% • Date of Last Valuation 01/06 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $164.0 M • Total Pension Appropriation (Fiscal 2009) $15.8 M

Active Retired • Number of Members 1,864 1,479 • Total Payroll/Benefit $64.7 M $22.6 M • Average Salary/Benefit $34,700 $15,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 73 • Average Service 13.1 years NA

INVESTMENT

Alternative Investments • North American Strategic Partners 2006, L.P. General Allocation • PRIT Custodian • State Street

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -27.55% 2008 Target 8.39% 2008 Market Value $167.4 M 2004-2008 (Annualized) .31% 1985-2008 (Annualized) 7.92%

42 | PERAC ANNUAL REPORT 2008 744 Main Street Board Members Board Administrator Falmouth Falmouth, MA 02540 Paul D. Brodeur (Chairperson), Francis X. St. Germaine III Phone 508-457-0578 Mary Ellen Alwardt, Russell Ferreira, Board Meeting Fax 508-540-9962 Ellen Philbin, Robert Whritenour Varies

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.6% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $40.8 M • Total Pension Appropriation (Fiscal 2009) $4.6 M

Active Retired • Number of Members 645 340 • Total Payroll/Benefit $26.2 M $6.4 M • Average Salary/Benefit $40,700 $18,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 72 • Average Service 11.1 years NA

INVESTMENT

Domestic Equity • Mesirow Financial Private Equity • Earnest Partners, LLC Partnership Fund IV • RhumbLine Russell 1000 Growth Pooled • Siguler Guff Distressed Opportunities Fund III Index Fund Absolute Return • RhumbLine Russell 1000 Value Pooled • PRIT Index Fund • Wellington Trust Co.-CIF Mid Cap Consultant Intersection Fund • Wainwright Investment Counsel, LLC International Equity Custodian Asset Growth (1999-2008) (Market Value in Millions) • Denver International Small Cap Equity Fund • State Street • INVESCO IRT International Equity Fund Domestic Fixed Income • SSgA US Aggregate Bond Index Strategy Fund • SSgA US High Yield Bond Index Strategy Fund International Fixed Income • Baring International Group Trust Fund F Real Estate • Intercontinental Real Estate Investment Fund III, LLC • MREP 2008 Distressed Co-Investment Fund, L.P. • Principal U.S. Property Account Alternative Investments Asset Allocation (12/31/08) • INVESCO Non-U.S. Partnership Fund III, L.P. • INVESCO U.S. Buyout & Expansion Capital Partnership Fund III, L.P. • INVESCO Venture Partnership Fund III, L.P. • Lexington Capital Partners V, L.P.

2008 Return -24.56% 2008 Target 9.46% 2008 Market Value $62.9 M 2004-2008 (Annualized) 1.82% 1985-2008 (Annualized) 8.69%

PERAC ANNUAL REPORT 2008 | 43 City Hall Board Members Board Administrator Fitchburg 718 Main Street Richard N. Sarasin (Chairperson), Diane G. Vieweg Fitchburg, MA 01420 John C. Curran, Thomas A. Dateo, Jr., Board Meeting Phone 978-345-9570 Ellen M. Jerszyk, Norman J. LeBlanc Fourth Tuesday of each month at 10:00 am Fax 978-345-9698

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 54.8% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.88% • Funding Schedule 3.93% Increasing • Year Fully Funded 2028 • Unfunded Liability $75.9M • Total Pension Appropriation (Fiscal 2009) $7.0M

Active Retired • Number of Members 661 532 • Total Payroll/Benefit $28.4 M $9.3 M • Average Salary/Benefit $42,900 $17,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 NA • Average Service 13.1 years NA

INVESTMENT

Real Estate • TA Realty Associates Fund VII General Allocation • PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -27.04% 2008 Target 8.39% 2008 Market Value $67.2 M 2004-2008 (Annualized) .65% 1985-2008 (Annualized) 7.12%

44 | PERAC ANNUAL REPORT 2008 Memorial Building Board Members Board Administrator Framingham 150 Concord Street, Room B-31 Richard C. Howarth, Jr. (Chairperson), Roberta Griffin Framingham, MA 01702-8325 Paul F. Barbieri, Mary Ellen Kelley, Board Meeting Phone 508-532-5465 Sidney W. Lebewohl, Peter J. Rovinelli Varies Fax 508-628-1327

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 75.3% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule .25% Increasing • Year Fully Funded 2026 • Unfunded Liability $64.9 M • Total Pension Appropriation (Fiscal 2009) $9.6 M

Active Retired • Number of Members 1,131 776 • Total Payroll/Benefit $48.9 M $15.0 M • Average Salary/Benefit $43,200 $19,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 73 • Average Service 11.6 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.34% 2008 Target 8.39% 2008 Market Value $151.4 M 2004-2008 (Annualized) 3.62% 1985-2008 (Annualized) 9.07%

PERAC ANNUAL REPORT 2008 | 45 278 Main Street Board Members Board Administrator Franklin Suite 311 Sandra Hanks (Chairperson), David Gendron, Dale Kowacki Regional Greenfield, MA 01301 Paul Mokrzecki, Herb Sanderson, Board Meeting Phone 413-774-4837 Mary Stokarski Usually meets the last Tuesday of each Fax 413-774-5677 month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 73.5% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule 2.38% Increasing • Year Fully Funded 2026 • Unfunded Liability $28.1M • Total Pension Appropriation (Fiscal 2009) $4.6 M

Active Retired • Number of Members 1,227 404 • Total Payroll/Benefit $30.3 M $4.4 M • Average Salary/Benefit $24,700 $10,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 NA • Average Service 9.3 years NA

INVESTMENT

Domestic Equity • Daruma Asset Management, Inc. • RhumbLine S&P 500 Pooled Index Fund • Rothschild Asset Management, Inc. Domestic Fixed Income • IR&M Core Bond Fund Real Estate • Prudential Real Estate Investors (PRISA) Fund Asset Growth (1999-2008) (Market Value in Millions) General Allocation • PRIT Consultant • Dahab Associates Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -26.82% 2008 Target 8.58% 2008 Market Value $59.4 M 2004-2008 (Annualized) 1.56% 1985-2008 (Annualized) 7.63%

46 | PERAC ANNUAL REPORT 2008 City Hall, Room 17 Board Members Board Administrator Gardner 95 Pleasant Street Calvin D. Brooks (Chairperson), Clifton J. Melatti Gardner, MA 01440 Charles E. Langlois, Jr., Kevin McInerney, Board Meeting Phone 978-630-4006 Denise M. Merriam, John J. Wall, Jr. Varies Fax 978-630-4012

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 70.6% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule 3.09% Increasing • Year Fully Funded 2021 • Unfunded Liability $18.4 M • Total Pension Appropriation (Fiscal 2009) $2.5 M

Active Retired • Number of Members 291 235 • Total Payroll/Benefit $10.4 M $3.9 M • Average Salary/Benefit $35,900 $16,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 72 • Average Service 13 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.54% 2008 Target 8.00% 2008 Market Value $31.2 M 2004-2008 (Annualized) 3.55% 1985-2008 (Annualized) 9.22%

PERAC ANNUAL REPORT 2008 | 47 P.O. Box 114 Board Members Board Administrator Gloucester 11-15 Parker Street, Suite 202 Douglas A. MacArthur (Chairperson), Patricia Ivas Gloucester, MA 01930 David J. Bain, Jr., Edward Hardy, Board Meeting Phone 978-281-9744 Melissa Ann Hobbs, Marcia C. McInnis Generally the third Wednesday of each Fax 978-281-9817 month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 55.8% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.88% • Funding Schedule 3.49% Increasing • Year Fully Funded 2028 • Unfunded Liability $56.9 M • Total Pension Appropriation (Fiscal 2009) $5.8 M

Active Retired • Number of Members 547 408 • Total Payroll/Benefit $22.8 M $7.2 M • Average Salary/Benefit $41,700 $17,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 50 73 • Average Service 12.4 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

$80 $70 $60 $50 $40 $30 $20 $10 $0 00 02 04 06 08

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.13% 2008 Target 8.39% 2008 Market Value $51.6 M 2004-2008 (Annualized) 1.41% 1985-2008 (Annualized) 8.51%

48 | PERAC ANNUAL REPORT 2008 P. O. Box 187 Board Members Board Administrator Greater North Andover, MA 01845 Laurie Elliott (Chairperson), Patricia Kelley Lawrence Phone 978-689-9464 Joyce Campagnone, Norman Cormier, Board Meeting Fax 978-685-7790 Mark Ford, John Petkus Last Wednesday of the month at 5:00 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 95.3% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2018 • Unfunded Liability $0.4 M • Total Pension Appropriation (Fiscal 2009) $0.2 M

Active Retired • Number of Members 42 19 • Total Payroll/Benefit $2.2 M $0.3 M • Average Salary/Benefit $53,200 $15,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 50 71 • Average Service 15.5 years NA

INVESTMENT

Total Portfolio • Bank of New York Mellon Custodian • Bank of New York Mellon

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -20.13% 2008 Target 8.00% 2008 Market Value $7.5 M 2004-2008 (Annualized) .90% 1985-2008 (Annualized) 6.61%

PERAC ANNUAL REPORT 2008 | 49 Greenfield Town Hall Board Members Board Administrator 14 Court Square William P. Devino (Chairperson), Marianne Fiske Greenfield, MA 01301 Michael A. Kociela, Marilyn A. Matysiewicz, Board Meeting Phone 413-772-1503 Betty L. Rice, Frances K. Stotz Varies Fax 413-772-1582

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.5% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2026 • Unfunded Liability $20.8 M • Total Pension Appropriation (Fiscal 2009) $2.5 M

Active Retired • Number of Members 378 219 • Total Payroll/Benefit $12.2 M $3.3 M • Average Salary/Benefit $32,200 $15,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 71 • Average Service 11.2 years NA

INVESTMENT

Domestic Equity • Smith Asset Management Group Small Cap Equity Fund • Victory Capital Management International Equity • SSgA All International Allocation Common Trust Fund Domestic Fixed Income • Pyramis Core Plus Commingled Pool Asset Growth (1999-2008) (Market Value in Millions) Real Estate • PRIT • UBS (US) Trumbull Property Fund LP Alternative Investments • PRIT Consultant • Segal Advisors Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -28.01% 2008 Target 9.00% 2008 Market Value $34.7 M 2004-2008 (Annualized) 1.68% 1985-2008 (Annualized) 7.96%

50 | PERAC ANNUAL REPORT 2008 Agawam Corporate Center Board Members Board Administrator Hampden 67 Hunt Street, Suite 116 Richard M. Theroux (Chairperson), Julianne Bartley County Agawam, MA 01001 Patricia C. Donovan, Patrick O’Neil, Board Meeting Regional Phone 413-737-1344 Laurel Placzek, Karl Schmaelzle Usually second to last business day of each Fax 413-732-7999 month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 66.5% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2024 • Unfunded Liability $121.9 M • Total Pension Appropriation (Fiscal 2009) $16.4 M

Active Retired • Number of Members 2,681 1,461 • Total Payroll/Benefit $87.0 M $20.8 M • Average Salary/Benefit $32,500 $14,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Real Estate • Fidelity Real Estate Growth Fund, L.P. • Fidelity Real Estate Growth Fund III, L.P. • New Boston Institutional Fund, L.P. VI Alternative Investments • DLJ Diversified Partners IV, L.P. • INVESCO Non-U.S. Partnership Fund III, L.P. • INVESCO U.S. Buyout & Expansion Capital Partnership Fund III, L.P. Asset Growth (1999-2008) (Market Value in Millions) • INVESCO Venture Partnership Fund III, L.P. • Zero Stage Capital VII, L.P. General Allocation • PRIT Consultant • Segal Advisors Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -25.06% 2008 Target 8.50% 2008 Market Value $173.2 M 2004-2008 (Annualized) 1.13% 1985-2008 (Annualized) 8.30%

PERAC ANNUAL REPORT 2008 | 51 99 Industrial Drive Board Members Board Administrator Hampshire Suite 2 Patrick E. Brock (Chairperson), John J. Lillis, Mary G. Baronas County Northampton, MA 01060-2326 Edward R. Montleon, John B. Walsh, Board Meeting Phone 413-584-9100 Joseph A. Wilhelm, III Varies, usually third Thursday Fax 413-587-9396

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 63.4% • Date of Last Valuation 01/07 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 3.5% Increasing • Year Fully Funded 2025 • Unfunded Liability $94.4 M • Total Pension Appropriation (Fiscal 2009) $12.4 M

Active Retired • Number of Members 2,413 996 • Total Payroll/Benefit $68.1 M $13.5 M • Average Salary/Benefit $28,200 $13,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 NA • Average Service 9.8 years NA

INVESTMENT

Domestic Equity Consultant • RhumbLine S&P 500 Pooled Index Fund • New England Pension Consultants • RhumbLine S&P Mid-Cap 400 Pooled Index Fund Custodian • RhumbLine S&P Small Cap Pooled Index Fund • State Street International Equity • MFS Institutional International Equity Fund • Voyageur International Fund Domestic Fixed Income Asset Growth (1999-2008) (Market Value in Millions) • Credos Floating Rate Fund, L.P. • McDonnell Investment Management, LLC • Primus High Yield Bond Fund, L.P. International Fixed Income • Colchester Global Bond Fund Real Estate • Intercontinental Real Estate Investment Fund III, LLC • PRIT Alternative Investments • Ascent Venture Partners III & IV, L.P. • PRIT Global Balanced • Mellon Global Alpha I Fund Asset Allocation (12/31/08) • PIMCO All Asset Fund • GMO Global Balanced Asset Allocation Fund Absolute Return • PRIT

2008 Return -23.70% 2008 Target 8.32% 2008 Market Value $137.5 M 2004-2008 (Annualized) 2.20% 1985-2008 (Annualized) 7.86%

52 | PERAC ANNUAL REPORT 2008 4 Summer Street Board Members Board Administrator Haverhill Room 303 William J. Klueber (Chairperson), Kathleen Gallant Haverhill, MA 01830 Charles Benevento, James P. Cleary, III, Board Meeting Phone 978-374-2358 Lewis F. Poore, Jr., Donald J. Shea Varies Fax 978-374-2353

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 60.8% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $108.1 M • Total Pension Appropriation (Fiscal 2009) $10.4 M

Active Retired • Number of Members 945 1,124 • Total Payroll/Benefit $36.8 M $20.0 M • Average Salary/Benefit $39,000 $17,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 NA • Average Service 11.8 years NA

INVESTMENT

Domestic Equity • PRIT • Fisher Investments, Inc. Alternative Investments • Munder Capital Management • Crescent Capital • Navellier & Associates, Inc. • First America Asia Fund I • Putnam Advisory Company, LLC • Globespan Capital Partners V, L.P. • RhumbLine Russell 1000 Value Pooled Index Fund • GrandBanks Capital Venture Fund II LP • Systematic Financial Management, L.P. • Macquarie Clean Technology Offshore Fund International Equity • New England Growth Fund I, L.P. • INVESCO IRT International Equity Fund • North Bridge Venture Partners II, L.P. Asset Growth (1999-2008) (Market Value in Millions) • MFS Institutional International Equity Fund • Novus Ventures II, L.P. • PRIT Domestic Fixed Income • Thomas H. Lee Equity Fund V, L.P. • Eaton Vance Loan Opportunities Fund, Ltd. • Fox Asset Management Emerging Markets • Hartford Core Fixed Income Fund • PRIT • RidgeWorth Investments / Seix High Yield Fund Absolute Return – Class I Shares • PRIT International Fixed Income Consultant • RiverSource Investments, LLC • Wainwright Investment Counsel, LLC Real Estate Custodian • BlackRock Apartment Value Fund III, L.P. • State Street • Geometry Real Estate LLC Asset Allocation (12/31/08) • GFP Global Timber Investors 8 • GFP Institutional Global Timber Investors VI Ltd. • GFP World Timberfund L.L.C. • Intercontinental Real Estate Investment Fund III, LLC • Mesirow Financial Institutional Real Estate International Fund 2008 Return -26.23% 2008 Target 8.25% 2008 Market Value $122.2 M 2004-2008 (Annualized) 2.81% 1985-2008 (Annualized) 9.91%

PERAC ANNUAL REPORT 2008 | 53 210 Central Street Board Members Board Administrator Hingham Hingham, MA 02043-2758 Ted C. Alexiades (Chairperson), Nancy M. Hutt Phone 781-741-1478 Thomas P. Hall, Eileen A. McCracken, Board Meeting Fax 781-741-1454 Jean M. Montgomery, Henry F.G. Wey, III Fourth Tuesday of each month at 10:00 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 80.1% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $18.8 M • Total Pension Appropriation (Fiscal 2009) $2.8 M

Active Retired • Number of Members 524 268 • Total Payroll/Benefit $19.9 M $5.2 M • Average Salary/Benefit $37,900 $19,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 72 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.39% 2008 Target 8.39% 2008 Market Value $56.6 M 2004-2008 (Annualized) 3.56% 1985-2008 (Annualized) 9.04%

54 | PERAC ANNUAL REPORT 2008 20 Korean Veterans Plaza Board Members Board Administrator Holyoke Room 207 Russell J. McNiff (Chairperson), Daniel R. Owens Holyoke, MA 01040-5044 John T. McCarthy, Jorge Neves, Board Meeting Phone 413-322-5590 Daniel R. Owens, Brian G. Smith Second Thursday of each month at 9:00 pm Fax 413-322-5591

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 66.0% • Date of Last Valuation 01/07 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule Level • Year Fully Funded 2025 • Unfunded Liability $90.4 M • Total Pension Appropriation (Fiscal 2009) $11.9 M

Active Retired • Number of Members 1,289 915 • Total Payroll/Benefit $49.8 M $16.7 M • Average Salary/Benefit $38,600 $18,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 NA • Average Service 11.2 years NA

INVESTMENT

Domestic Equity Custodian • Boston Company Mid Cap Opportunistic Value • State Street Equity Fund • Pyramis Select Equity Small Cap Collective Trust • Smith Asset Management Group Small Cap Equity Fund • SSgA SPDR Trust Series ETF • UBS Large Cap Select Growth Fund • Voyageur Large Cap Value Fund Asset Growth (1999-2008) (Market Value in Millions) International Equity • Fisher Investments Foreign Equity Fund • Lazard Emerging Markets Equity Portfolio • OFITC Emerging Markets Equity Fund • Voyageur International Fund Domestic Fixed Income • Putnam High Yield Managed Trust • Voyageur Core Plus Fixed Income Fund Real Estate • American Core Realty Fund, LLC • Fidelity Real Estate Growth Fund, L.P. • Fidelity Real Estate Growth Fund III, L.P. • Intercontinental Real Estate Investment Fund III, LLC Asset Allocation (12/31/08) • INVESCO Core Real Estate Fund • TA Realty Associates Fund VII Consultant • Segal Advisors

2008 Return -32.51% 2008 Target 9.72% 2008 Market Value $123.5 M 2004-2008 (Annualized) -1.23% 1985-2008 (Annualized) 8.40%

PERAC ANNUAL REPORT 2008 | 55 253 Atlantic Avenue Board Members Board Administrator Hull Hull, MA 02045 Maurice E. Murphy (Chairperson), Jennifer Miller Phone 781-925-2282 Gerald Ball, Marcia D. Bohinc, Board Meeting Fax 781-925-8509 Leonard Colten, Rocky Tenaglia Last Tuesday of the month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 51.5% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.75% • Funding Schedule 2.99% Increasing • Year Fully Funded 2025 • Unfunded Liability $24.8 M • Total Pension Appropriation (Fiscal 2009) $2.9 M

Active Retired • Number of Members 187 135 • Total Payroll/Benefit $8.9 M $2.9 M • Average Salary/Benefit $47,600 $21,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 NA • Average Service 11.4 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.26% 2008 Target 7.75% 2008 Market Value $18.7 M 2004-2008 (Annualized) 3.31% 1985-2008 (Annualized) 7.27%

56 | PERAC ANNUAL REPORT 2008 354 Merrimack Street Board Members Board Administrator Lawrence Suite 302 John A. Neilon, Jr. (Chairperson), Diane Cockroft Lawrence, MA 01843 William Bateman, David Camasso, Board Meeting Phone 978-620-3570 William McGuire, Nancy B. Ross Varies Fax 978-683-5894

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 48.9% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule 3.26% Increasing • Year Fully Funded 2028 • Unfunded Liability $146.2 M • Total Pension Appropriation (Fiscal 2009) $14.0 M

Active Retired • Number of Members 1,503 886 • Total Payroll/Benefit $59.6 M $16.8 M • Average Salary/Benefit $39,600 $19,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 74 • Average Service 10.4 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.16% 2008 Target 8.39% 2008 Market Value $96.3 M 2004-2008 (Annualized) .26% 1985-2008 (Annualized) 7.10%

PERAC ANNUAL REPORT 2008 | 57 City Hall, Room 15 Board Members Board Administrator Leominster 25 West Street John J. Richard (Chairperson), Paul R. Doig, Anna Hamblin and A. Nancy Person Leominster, MA 01453 David R. LaPlante, Aldo J. Mazzaferro, Board Meeting Phone 978-534-7507, ext. 246 John F. Picone Generally the last working day in each Fax 978-534-7508 month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 83.5% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2012 • Unfunded Liability $19.5 M • Total Pension Appropriation (Fiscal 2009) $7.0 M

Active Retired • Number of Members 632 378 • Total Payroll/Benefit $23.5 M $6.3 M • Average Salary/Benefit $37,200 $16,700 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 73 • Average Service 10.6 years NA

INVESTMENT

Domestic Equity • MFS Institutional Large Cap Value Fund • Union Labor Life Small Cap Equity Account International Equity • Templeton Foreign Equity Series Fund Domestic Fixed Income • PRIT General Allocation Asset Growth (1999-2008) (Market Value in Millions) • PRIT Absolute Return • PRIT Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -28.88% 2008 Target 8.39% 2008 Market Value $72.1 M 2004-2008 (Annualized) 1.95% 1985-2008 (Annualized) 7.92%

58 | PERAC ANNUAL REPORT 2008 1625 Massachusetts Avenue Board Members Board Administrator Lexington Lexington, MA 02420 Robert Cunha (Chairperson), Marguerite Oliva Phone 781-861-2720 Robert Addelson, Alan Fields, Joseph Foley, Board Meeting Fax 781-861-2794 Michael McNabb Varies

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 100.5% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2015 • Unfunded Liability -$0.7 M • Total Pension Appropriation (Fiscal 2009) $3.5 M

Active Retired • Number of Members 599 387 • Total Payroll/Benefit $25.7 M $6.8 M • Average Salary/Benefit $42,900 $17,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 74 • Average Service 10.5 years NA

INVESTMENT

Domestic Equity • Earnest Partners, LLC • Fidelity Contra Fund • Hartford Capital Appreciation HLS Fund • Wellington Trust Co.-CIF Emerging Companies Fund International Equity • Acadian International Equity Fund • Artio International Equity Fund II Asset Growth (1999-2008) (Market Value in Millions) • Wellington Trust Co.-CIF Asia Pacific ex Japan Portfolio Domestic Fixed Income • SSgA Passive Bond Market Index SL Fund Real Estate • Beacon Capital Strategic Partners V, L.P. Global Balanced Fund • PIMCO All Asset Fund • Wellington Trust Co.-CIF Opportunistic Invest- ment Portfolio Consultant • Meketa Investment Group Asset Allocation (12/31/08) Custodian • State Street

2008 Return -32.83% 2008 Target 8.00% 2008 Market Value $80.2 M 2004-2008 (Annualized) 1.69% 1985-2008 (Annualized) 8.42%

PERAC ANNUAL REPORT 2008 | 59 City Hall, Room 3 Board Members Board Administrator Lowell 375 Merrimack Street Joseph Mahoney (Chairperson), Shannon Dowd Lowell, MA 01852-5998 Michael M. Brennan, Bill Desrosiers, Board Meeting Phone 978-970-4094 Tom Moses, Sheryl Wright Varies Fax 978-446-7019

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 58.8% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $163.2 M • Total Pension Appropriation (Fiscal 2009) $15.6 M

Active Retired • Number of Members 1,867 1,098 • Total Payroll/Benefit $79.6 M $22.5 M • Average Salary/Benefit $42,700 $20,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Real Estate • Intercontinental Real Estate Investment Fund III, LLC • Sentinel Realty Partners IV & V Alternative Investments • Ascent Venture Partners II, III, & IV, L.P. • Boston Millennia Partners, L.P. • Boston Millennia Partners II, L.P. • Charles River Partnership VII, VIII, IX, X, & XI Asset Growth (1999-2008) (Market Value in Millions) • DN Partners, L.P. • New England Growth Fund I & II, L.P. • North Atlantic Venture Fund II & III • Novus Ventures II, L.P. • Senior Tour Players Fund I General Allocation • PRIT Distribution Manager • QCI Asset Management Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -29.27% 2008 Target 8.39% 2008 Market Value $191.4 M 2004-2008 (Annualized) 3.14% 1985-2008 (Annualized) 8.90%

60 | PERAC ANNUAL REPORT 2008 City Hall Board Members Board Administrator Lynn Room 106 Michael J. Marks (Chairperson), Gary Brenner Lynn, MA 01901 Gordon “Buzzy” Barton, Richard Biagiotti, Board Meeting Phone 781-586-6897 Joseph P. Driscoll, John E. Pace Last Tuesday of each month at 9:30 am Fax 781-595-9101

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 48.1% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2027 • Unfunded Liability $214.1 M • Total Pension Appropriation (Fiscal 2009) $20.7 M

Active Retired • Number of Members 1,468 1,254 • Total Payroll/Benefit $67.2 M $25.7 M • Average Salary/Benefit $45,800 $20,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 74 • Average Service 13 years NA

INVESTMENT

Real Estate • BlackRock Granite Property Fund • Fidelity Real Estate Growth Fund III, L.P. • SSgA Tuckerman / Property Redevelopment & Renovation Fund Alternative Investments • Ascent Venture Partners III & IV, L.P. • BlackRock Diversified Private Equity Program III • Novo Vita, L.P. Asset Growth (1999-2008) (Market Value in Millions) General Allocation • PRIT Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -27.11% 2008 Target 8.39% 2008 Market Value $153.0 M 2004-2008 (Annualized) 1.93% 1985-2008 (Annualized) 7.65%

PERAC ANNUAL REPORT 2008 | 61 One Beacon Street Board Members Board Administrator MHFA Boston, MA 02108 Andris Silins (Chairperson), Joseph M. Petty Phone 617-854-1871 Michael Fitzmaurice, Paul T. Hynes, Board Meeting Fax 617-854-1027 Christopher Johnson, Antonio Torres Second Tuesday of each month at 1:30 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 94.4% • Date of Last Valuation 01/07 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule Level • Year Fully Funded 2013 • Unfunded Liability $3.8 M • Total Pension Appropriation (Fiscal 2009) $1.7 M

Active Retired • Number of Members 334 87 • Total Payroll/Benefit $25.6 M $2.3 M • Average Salary/Benefit $76,500 $26,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 68 • Average Service 9.9 years NA

INVESTMENT

Domestic Equity • Independence Small Cap Fund • SSgA Russell 1000 Growth Index Fund • SSgA Russell 1000 Value Index Fund International Equity • Dimensional Emerging Markets Value Portfolio • INVESCO IRT International Equity Fund • Munder International Small Cap Collective Equity Fund Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • MacKay Shields Statutory Trust High Yield Series • McDonnell Investment Management, LLC • SSgA Treasury Inflation Protected Securities (TIPS) Fund Real Estate • Angelo Gordon Realty Fund IV, L.P. • Clarion Lion Properties Fund Alternative Investments • Ascent Venture Partners II, III, IV, & V L.P. • Goldman Sachs Private Equity Partners Fund 2005 • HarbourVest Partners VIII – Buyout Partnership Fund Asset Allocation (12/31/08) Consultant • Meketa Investment Group Custodian • State Street

2008 Return -24.64% 2008 Target 8.00% 2008 Market Value $54.2 M 2004-2008 (Annualized) 1.10% 1985-2008 (Annualized) 7.01%

62 | PERAC ANNUAL REPORT 2008 MWRA Chelsea Facility Board Members Acting Board Administrator MWRA 2 Griffin Way James M. Fleming, Esq. (Chairperson), Ruth E. O’Meara Chelsea, MA 02150 Thomas J. Durkin, Joseph A. MacRitchie, Esq., Board Meeting Phone 617-305-5595 Daniel K. O’Brien, Robert E. Tierney, Esq. Varies Fax 617-371-1616

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 82.7% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2024 • Unfunded Liability $44.2 M • Total Pension Appropriation (Fiscal 2009) $5.3 M

Active Retired • Number of Members 1,127 267 • Total Payroll/Benefit $75.4 M $6.1 M • Average Salary/Benefit $66,900 $22,700 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 65 • Average Service NA NA

INVESTMENT

Domestic Equity Global Balanced Fund • Boston Partners Asset Management, L.P. • PIMCO All Asset Fund • Loomis Sayles Small Company Growth Fund • Wellington Trust Co.-CIF Opportunistic • MFS Institutional Advisors, Inc. Investment Portfolio • RhumbLine S&P 500 Pooled Index Fund General Allocation International Equity • PRIT • Boston Company Non-US Value Equity Fund Absolute Return • Global Currents International Equity Value Fund • PRIT Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income Consultant • INVESCO, Inc. • New England Pension Consultants • Loomis Sayles Fixed Income Fund Custodian Real Estate • State Street • BlackRock Apartment Value Fund III, L.P. • Intercontinental Real Estate Investment Fund IV, LLC • Carey Corporate Properties Associates Fund 15 • Morgan Stanley Prime Property Fund Alternative Investments • AIG Private Equity Portfolio V • Ascent Venture Partners II, IV, & V L.P. • Boston Capital Ventures III Asset Allocation (12/31/08) • Castile Ventures III, L.P. • Concord Partners III, L.P. • Foundry Venture Capital 2007, LP • INVESCO Venture Partnership Fund IV, L.P. • PRIT

2008 Return -22.29% 2008 Target 9.45% 2008 Market Value $203.6 M 2004-2008 (Annualized) 2.89% 1985-2008 (Annualized) 7.47%

PERAC ANNUAL REPORT 2008 | 63 Government Center, Room 222 Board Members Board Administrator Malden 200 Pleasant Street Domenic Fermano (Chairperson), Kevin Morrison Malden, MA 02148 Warren Atkinson, Jr., Joanne Croken, Board Meeting Phone 781-397-7086 Douglas Eisnor, Ronald B. Hogan Third Wednesday of each month Fax 781-397-7358

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 73.3% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 2.0% Increasing • Year Fully Funded 2028 • Unfunded Liability $57.9 M • Total Pension Appropriation (Fiscal 2009) $8.2 M

Active Retired • Number of Members 866 647 • Total Payroll/Benefit $37.5 M $12.3 M • Average Salary/Benefit $43,400 $19,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 12.4 years NA

INVESTMENT

Total Portfolio • de Burlo Group Custodian • State Street

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -20.47% 2008 Target 8.00% 2008 Market Value $130.3 M 2004-2008 (Annualized) 3.72% 1985-2008 (Annualized) 9.58%

64 | PERAC ANNUAL REPORT 2008 Mary Alley Building Board Members Board Administrator Marblehead 7 Widger Road Anthony M. Sasso (Chairperson), Matthew P. Barrett Marblehead, MA 01945 Paul Jalbert, John McGinn, Robert F. Peck, Jr., Board Meeting Phone 781-639-3418 Calvin R. Powers Varies Fax 781-631-2617

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 89.9% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2019 • Unfunded Liability $9.5 M • Total Pension Appropriation (Fiscal 2009) $2.3 M

Active Retired • Number of Members 360 321 • Total Payroll/Benefit $15.8 M $5.9 M • Average Salary/Benefit $44,000 $18,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.44% 2008 Target 8.39% 2008 Market Value $61.7 M 2004-2008 (Annualized) 3.58% 1985-2008 (Annualized) 8.98%

PERAC ANNUAL REPORT 2008 | 65 City Hall Board Members Board Administrator Marlborough 140 Main Street Gregory P. Brewster (Chairperson), Margaret R. Shea Marlborough, MA 01752-3812 Thomas J. Abel, Christopher M. Sandini, Sr., Board Meeting Phone 508-460-3760 Diane Smith, William Taylor Usually the last Monday of each month Fax 508-481-7814

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 64.5% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 2.25% Increasing • Year Fully Funded 2022 • Unfunded Liability $48.1 M • Total Pension Appropriation (Fiscal 2009) $6.2 M

Active Retired • Number of Members 674 339 • Total Payroll/Benefit $26.9 M $7.0 M • Average Salary/Benefit $39,800 $20,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 72 • Average Service NA NA

INVESTMENT

Domestic Equity • Batterymarch US Small Cap Equity Growth Fund • PENN Midcap Equity Fund, LP • RhumbLine S&P 500 Pooled Index Fund International Equity • Boston Company Non-US Value Equity Fund • Neuberger Berman International Large Cap Fund – Institutional Class

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • Shenkman Capital Management / Credos High Yield Bond Fund • SSgA Passive Bond Market Index SL Fund • SSgA Treasury Inflation Protected Securities (TIPS) Fund Alternative Investments • North American Strategic Partners 2006, L.P. Real Estate • Clarion Lion Properties Fund Consultant • Meketa Investment Group Custodian Asset Allocation (12/31/08) • State Street

2008 Return -20.53% 2008 Target 7.70% 2008 Market Value $76.3 M 2004-2008 (Annualized) 2.93% 1985-2008 (Annualized) 8.18%

66 | PERAC ANNUAL REPORT 2008 One Harborside Drive Board Members Board Administrator Massport Suite 200S James P. Costello (Chairperson), Irene E. Moran East Boston, MA 02128 David W. Davis, Michael A. Grieco, Board Meeting Phone 617-568-3951 Philip H. Mallett , John P. Pranckevicius Generally the last Wednesday of each month Fax 617-568-3957

Funded Ratio (1987-2008) ACTUARIAL

140% • Funded Ratio 110.6% • Date of Last Valuation 01/08 120% • Actuary Stone 100% • Assumed Rate of Return 7.75% 80% • Funding Schedule Fully Funded 60% • Year Fully Funded NA 40% • Unfunded Liability -$38.0 M • Total Pension Appropriation (Fiscal 2009) $0.4 M 20%

0% Active Retired 88 90 92 94 96 98 00 02 04 06 08 • Number of Members 1,179 478 • Total Payroll/Benefit $81.1 M $13.3 M • Average Salary/Benefit $68,800 $27,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 68 • Average Service 14.1 years NA

INVESTMENT

Domestic Equity • Pzena Investment Management • SSgA Russell 2000 Growth Index Fund • SSgA S&P 500 Flagship Fund International Equity • Pyramis Select International Equity Commingled Pool • Templeton Institutional Funds, Foreign Equity Series Domestic Fixed Income Asset Growth (1999-2008) (Market Value in Millions) • Wellington Trust Co.-CIF II Core Bond Plus Portfolio Real Estate • PRIT Alternative Investments • PRIT Consultant • Wilshire Associates Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -26.57% 2008 Target 7.11% 2008 Market Value $300.3 M 2004-2008 (Annualized) 2.06% 1985-2008 (Annualized) 8.63%

PERAC ANNUAL REPORT 2008 | 67 10 Park Plaza Board Members Board Administrator Mass Suite 4155 Gerald F. Coughlin, David Grenon, Thomas L. Arcadipane Turnpike Boston, MA 02116 Francis M. Hoey, Joseph McCann Board Meeting Phone 617-248-2942 Last Wednesday of each month Fax 617-248-2980

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 77.4% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $65.1 M • Total Pension Appropriation (Fiscal 2009) $7.5 M

Active Retired • Number of Members 1,246 706 • Total Payroll/Benefit $71.9 M $21.8 M • Average Salary/Benefit $57,700 $30,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 70 • Average Service 13 years NA

INVESTMENT

Domestic Equity • Boston Company Asset Management, LLC • Cadence Capital Management, LLC • Cooke & Bieler, L.P. International Equity • Global Currents International Equity Value Fund Domestic Fixed Income • PRIT Asset Growth (1999-2008) (Market Value in Millions) Global Balanced Fund • Mellon Global Alpha I Fund • PIMCO All Asset Fund General Allocation • PRIT Absolute Return • PRIT Consultant • New England Pension Consultants Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -27.75% 2008 Target 8.25% 2008 Market Value $161.6 M 2004-2008 (Annualized) .84% 1985-2008 (Annualized) 7.84%

68 | PERAC ANNUAL REPORT 2008 195 Main Street Board Members Board Administrator Maynard Maynard, MA 01754 Kenneth R. DeMars (Chairperson), Timothy McDaid Phone 978-897-1820 Christopher F. Connolly Sr., Robert W. Larkin, Board Meeting Fax 978-897-0565 Thomas A. Natoli, Clifford Wilson Last Thursday of each month at 12:15 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 75.1% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 3.75% Increasing • Year Fully Funded 2023 • Unfunded Liability $7.6 M • Total Pension Appropriation (Fiscal 2009) $1.4 M

Active Retired • Number of Members 186 85 • Total Payroll/Benefit $6.6 M $1.5 M • Average Salary/Benefit $35,300 $17,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 10.1 years NA

INVESTMENT

Domestic Equity • Boston Advisors, Inc. Domestic Fixed Income • PRIT Emerging Markets • PRIT Custodian • State Street Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -26.86% 2008 Target 8.61% 2008 Market Value $19.4 M 2004-2008 (Annualized) .86% 1985-2008 (Annualized) 7.23%

PERAC ANNUAL REPORT 2008 | 69 City Hall Board Members Board Administrator Medford Room 215 Thomas A. Cangiano (Chairperson), Tina Rapatano Medford, MA 02155 Anne C. Baker, John Camuso, Rick Jordan, Board Meeting Phone 781-393-2521, 781-393-2516 (TDD#) James Vieira Varies Fax 781-393-2522

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 69.1% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 7.50% • Funding Schedule 4% Increasing • Year Fully Funded 2028 • Unfunded Liability $66.8 M • Total Pension Appropriation (Fiscal 2009) $8.0 M

Active Retired • Number of Members 741 616 • Total Payroll/Benefit $34.0 M $13.1 M • Average Salary/Benefit $45,900 $21,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 75 • Average Service NA NA

INVESTMENT

Domestic Equity • Loomis Sayles Small Cap Value Fund • RhumbLine S&P 500 Pooled Index Fund • RhumbLine S&P Mid-Cap 400 Pooled Index Fund • SSgA Index Plus Edge Strategy Fund International Equity • INVESCO IRT International Equity Fund Domestic Fixed Income • Columbia Management Group, Inc. Asset Growth (1999-2008) (Market Value in Millions) Real Estate • BlackRock Apartment Value Fund III, L.P. • PRIT Alternative Investments • PRIT Global Balanced • Mellon Global Alpha I Fund • PIMCO All Asset Fund • Wellington Trust Co.-CIF Opportunistic Investment Portfolio • PRIT Absolute Return • PRIT Asset Allocation (12/31/08) Consultant • New England Pension Consultants Custodian • State Street

2008 Return -22.47% 2008 Target 8.60% 2008 Market Value $114.9 M 2004-2008 (Annualized) 2.39% 1985-2008 (Annualized) 8.65%

70 | PERAC ANNUAL REPORT 2008 562 Main Street Board Members Board Administrator Melrose Melrose, MA 02176 Patrick DelloRusso (Chairperson), Michael Pasquariello Phone 781-979-4150 or 4151 Michael L. Lyle , John O’Brien, John P. O’Neil, Board Meeting Fax 781-979-4206 Richard E. Pitts Varies

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 64.6% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.0% Increasing • Year Fully Funded 2024 • Unfunded Liability $34.9 M • Total Pension Appropriation (Fiscal 2009) $4.7 M

Active Retired • Number of Members 433 382 • Total Payroll/Benefit $15.5 M $6.9 M • Average Salary/Benefit $35,700 $18,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 9.9 years NA

INVESTMENT

Real Estate • Intercontinental Real Estate Investment Fund II, LLC • SSgA Tuckerman / Property Redevelopment & Renovation Fund • TA Realty Associates Fund V & VII Alternative Investments • Ascent Venture Partners IV, L.P. • INVESCO Non-U.S. Partnership Fund III, L.P. • INVESCO U.S. Buyout & Expansion Capital Asset Growth (1999-2008) (Market Value in Millions) Partnership Fund III, L.P. • INVESCO Venture Partnership Fund III & IV, L.P. • Keystone Venture V General Allocation • PRIT Consultant • Segal Advisors

Asset Allocation (12/31/08)

2008 Return -26.81% 2008 Target 8.39% 2008 Market Value $48.2 M 2004-2008 (Annualized) 2.11% 1985-2008 (Annualized) 8.11%

PERAC ANNUAL REPORT 2008 | 71 41 Pleasant Street Board Members Board Administrator Methuen Suite 303 Thomas J. Kelly (Chairperson), Sharon Cutter, Terrylee Murphy Methuen, MA 01844 Robert J. DeLuca, Michael Hennessy, Board Meeting Phone 978-983-8620 Albert J. Trott, III Last Thursday of each month at 9:30 am Fax 978-983-8972

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 56.6% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $67.0 M • Total Pension Appropriation (Fiscal 2009) $6.0 M

Active Retired • Number of Members 697 404 • Total Payroll/Benefit $30.1 M $8.1 M • Average Salary/Benefit $43,200 $20,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 72 • Average Service 11.7 years NA

INVESTMENT

Real Estate • RREEF America REIT II • Sentinel Realty Partners IV Alternative Investments • BlackRock Diversified Private Equity Program III General Allocation • PRIT Consultant Asset Growth (1999-2008) (Market Value in Millions) • Segal Advisors

Asset Allocation (12/31/08)

2008 Return -26.20% 2008 Target 8.39% 2008 Market Value $63.1 M 2004-2008 (Annualized) .12% 1985-2008 (Annualized) 7.42%

72 | PERAC ANNUAL REPORT 2008 P. O. Box 160 Board Members Board Administrator Middlesex 25 Linnell Circle Thomas F. Gibson, Esq. (Chairperson), Jacqueline Williams County Billerica, MA 01865 John Brown, Brian P. Curtin, Board Meeting Phone 800-258-3805, 978-439-3000 James M. Gookin , Edgar W. McLean, Jr. Meets monthly, usually on Thursday Fax 978-439-3050

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 50.7% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $754.9 M • Total Pension Appropriation (Fiscal 2009) $71.2 M

Active Retired • Number of Members 9,285 4,764 • Total Payroll/Benefit $360.2 M $83.4 M • Average Salary/Benefit $38,800 $17,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 NA • Average Service 9.9 years NA

INVESTMENT

Real Estate • New England Growth Fund I & II, L.P. • BlackRock Apartment Value Fund III, L.P. • North Atlantic Venture Fund II & III • Geometry Real Estate LLC • Novo Vita, L.P. • Geometry Real Estate III, L.P. • Novus Ventures II, L.P. • GFP World Timberfund L.L.C. • PRISM Venture Partners I & III, L.P. • Intercontinental Real Estate Investment • Thomas H. Lee Equity Fund V, L.P. Fund III & IV, LLC • Weiss, Peck & Greer Corporate • Sentinel Realty Partners V Development IV, L.P. • SSgA Tuckerman / Multi-Family Development • Zero Stage Capital V, L.P. Asset Growth (1999-2008) (Market Value in Millions) Program III General Allocation • SSgA Tuckerman / Residential Income and Value • PRIT Added (RIVA) Fund • TA Realty Associates Fund VI Custodian • Value Enhancement Fund IV, V & VI • State Street Alternative Investments • Alliance Technology Ventures III, L.P. • Ascend Ventures, L.P. • Ascent Venture Partners II & III, L.P. • Auda Partners, L.P. • Bachow Investment Partners III, L.P. • Boston Millennia Partners, L.P. • Boston Millennia Partners II, L.P. • Crescent Capital Asset Allocation (12/31/08) • Duke Street Capital Fund III, V & VI • First America Asia Fund I, LLC • Globespan Capital Partners IV & V, L.P. • INVESCO Non-U.S. Partnership Fund III, L.P.

2008 Return -24.50% 2008 Target 8.39% 2008 Market Value $597.7 M 2004-2008 (Annualized) 2.50% 1985-2008 (Annualized) 8.15%

PERAC ANNUAL REPORT 2008 | 73 Town Hall, Room 17 Board Members Board Administrator Milford 52 Main Street David Sacco, Esq. (Chairperson), Linda DeDominick Milford, MA 01757 Michael A. Diorio, CPA, Gerald F. Hennessy, Board Meeting Phone 508-634-2321 Ernest Pettinari, Esq. , John P. Pyne, Jr., Fourth Tuesday of each month at 1:00 pm Fax 508-634-0902

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 73.5% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $21.3 M • Total Pension Appropriation (Fiscal 2009) $2.8 M

Active Retired • Number of Members 423 288 • Total Payroll/Benefit $15.5 M $4.3 M • Average Salary/Benefit $36,700 $15,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 11.5 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -31.79% 2008 Target 8.39% 2008 Market Value $43.3 M 2004-2008 (Annualized) -.03% 1985-2008 (Annualized) 7.72%

74 | PERAC ANNUAL REPORT 2008 525 Canton Avenue Board Members Board Administrator Milton Milton, MA 02186 David S. Grab (Chairperson), Kevin Cleary Phone 617-898-4887 John H. Bowie, Jr., Robert J. Byron, Board Meeting Fax 617-698-6741 Kevin J. Cleary, Richard J. Madigan Last Thursday of each month at 3:30 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 80.5% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2016 • Unfunded Liability $18.0 M • Total Pension Appropriation (Fiscal 2009) $3.7 M

Active Retired • Number of Members 349 290 • Total Payroll/Benefit $15.9 M $5.8 M • Average Salary/Benefit $45,600 $20,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 73 • Average Service 11.5 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.23% 2008 Target 8.39% 2008 Market Value $63.7 M 2004-2008 (Annualized) 3.09% 1985-2008 (Annualized) 9.18%

PERAC ANNUAL REPORT 2008 | 75 758 Marrett Road Board Members Board Administrator Minuteman Lexington, MA 02421 Janet B. Killeen (Chairperson), Janet B. Killeen Regional Phone 781-861-6500 Norman Cohen, Donald Essman, Board Meeting Fax 781-863-1747 Linda J. Gendall, Maria Oliveira Generally the fourth Thursday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 118.3% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule Fully Funded • Year Fully Funded NA • Unfunded Liability -$1.6 M • Total Pension Appropriation (Fiscal 2009) $0.1 M

Active Retired • Number of Members 48 28 • Total Payroll/Benefit $2.1 M $0.4 M • Average Salary/Benefit $44,600 $14,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 74 • Average Service 11.9 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.70% 2008 Target 8.39% 2008 Market Value $8.8 M 2004-2008 (Annualized) 3.56% 1985-2008 (Annualized) 9.34%

76 | PERAC ANNUAL REPORT 2008 One Avenue A Board Members Board Administrator Montague Turners Falls, MA 01376 Carolyn S. Olsen (Chairperson), Shari Hildreth Phone 413-863-3200, ext. 111 Frank Abbondanzio, Cheryl Clark, Board Meeting Fax 413-863-3224 David R. Dion, Marianne Fiske Usually the fourth Tuesday of each month at 1:00 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 84.3% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 1.0% Increasing • Year Fully Funded 2015 • Unfunded Liability $4.5 M • Total Pension Appropriation (Fiscal 2009) $1.3 M

Active Retired • Number of Members 215 110 • Total Payroll/Benefit $6.0 M $1.5 M • Average Salary/Benefit $28,000 $13,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 10.4 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.35% 2008 Target 8.39% 2008 Market Value $18.4 M 2004-2008 (Annualized) 3.61% 1985-2008 (Annualized) 8.87%

PERAC ANNUAL REPORT 2008 | 77 13 East Central Street Board Members Board Administrator Natick Natick, MA 01760 Robert J. Drew (Chairperson), David Given, Kathleen S. Bacon Phone 508-647-6440 John D. Mahaney, Michael J. Melchiorri, Board Meeting Fax 508-647-6443 Fred E. Witte Usually the last Wednesday of the month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 69.2% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2026 • Unfunded Liability $40.4 M • Total Pension Appropriation (Fiscal 2009) $5.3 M

Active Retired • Number of Members 573 371 • Total Payroll/Benefit $25.8 M $7.1 M • Average Salary/Benefit $45,000 $19,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 NA • Average Service 12.1 years NA

INVESTMENT

Domestic Equity Alternative Investments • SEI Institutional Investments Trust Disciplined • First America Asia Fund I Equity Fund • North American Strategic Partners 2006, L.P. • SEI Institutional Investments Trust Large Cap Absolute Return Equity Fund • PRIT • SEI Institutional Investments Trust Small Cap Equity Fund Consultant • SEI Institutional Investments Trust Small/Mid • Fiduciary Investment Advisors, LLC Cap Equity Fund Custodian Asset Growth (1999-2008) (Market Value in Millions) International Equity • State Street • SEI Institutional Investments Trust World Equity Ex-US Fund Domestic Fixed Income • SEI Institutional Investments Trust Core Fixed Income Fund • SEI Institutional Investments Trust High Yield Bond Fund International Fixed Income • SEI Institutional Investments Trust Emerging Market Bond Fund Real Estate Asset Allocation (12/31/08) • Intercontinental Real Estate Investment Fund III, LLC • PRIT • Sentinel Realty Partners VI

2008 Return -31.94% 2008 Target 8.50% 2008 Market Value $58.0 M 2004-2008 (Annualized) -1.27% 1985-2008 (Annualized) 7.31%

78 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Needham 1471 Highland Avenue Evelyn M. Poness (Chairperson), MaryClare Siegel Needham, MA 02492-2605 Kathleen P. Fitzpatrick, John P. Krawiecki, Board Meeting Phone 781-455-7595 Robert P. Mearls, Thomas A. Welch Usually second Wednesday of each month Fax 781-449-4569 at 8:30 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 79.5% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2021 • Unfunded Liability $26.4 M • Total Pension Appropriation (Fiscal 2009) $4.1 M

Active Retired • Number of Members 648 513 • Total Payroll/Benefit $26.1 M $8.3 M • Average Salary/Benefit $40,300 $16,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 75 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -28.98% 2008 Target 8.39% 2008 Market Value $85.3 M 2004-2008 (Annualized) 3.61% 1985-2008 (Annualized) 9.60%

PERAC ANNUAL REPORT 2008 | 79 651 Orchard Street, #203A Board Members Board Administrator New Bedford New Bedford, MA 02744-1008 Arthur J. Caron, Jr. (Chairperson), Gerard Arnaudet Phone 508-979-1538 Dennis C. Brightman, Paul M. Lestage, Board Meeting Fax 508-979-1799 Peter C. Schmidt, Edward J. Wiley Usually last Thursday of each month at 9:30 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 44.9% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.38% • Funding Schedule 4.5% Increasing • Year Fully Funded 2026 • Unfunded Liability $252.9 M • Total Pension Appropriation (Fiscal 2009) $25.3 M

Active Retired • Number of Members 2,299 1,721 • Total Payroll/Benefit $86.7 M $27.6 M • Average Salary/Benefit $37,700 $16,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Domestic Equity Consultant • Boston Company • Segal Advisors • Wellington Trust Co.-CIF Diversified Growth Custodian Portfolio • State Street • Westfield Capital Management Company, LLC International Equity • Boston Company Non-US Value Equity Fund • Morgan Stanley Investment Management

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • Aberdeen Asset Management, Inc. • Loomis Sayles Fixed Income Fund Real Estate • BlackRock Granite Property Fund • SSgA Tuckerman / Property Redevelopment & Renovation Fund • TA Realty Associates Fund VIII • UBS (US) Trumbull Property Fund LP Alternative Investments • INVESCO International Partnership Fund IV, L.P. • INVESCO U.S. LBO & Corporate Finance Partnership Fund IV, L.P. Asset Allocation (12/31/08) • INVESCO Venture Partnership Fund IV, L.P. • Wilton Private Market Specialized Fund, LLC Absolute Return • PRIT

2008 Return -26.95% 2008 Target 9.00% 2008 Market Value $179.0 M 2004-2008 (Annualized) 2.78% 1985-2008 (Annualized) 7.45%

80 | PERAC ANNUAL REPORT 2008 City Hall Board Members Board Administrator Newburyport 60 Pleasant Street Franklin J. Spaulding (Chairperson), Laurie Burton Newburyport, MA 01950 Paula Fowler, Alexander Kravchuk, Board Meeting Phone 978-465-6619 Vincent Malgeri, William B. Squillace Varies Fax 978-462-4042

Funded Ratio (1987-2008) ACTUARIAL

100% • Funded Ratio 65.0% • Date of Last Valuation 01/08 80% • Actuary PERAC • Assumed Rate of Return 8.00% 60% • Funding Schedule 1.5% Increasing 40% • Year Fully Funded 2027 • Unfunded Liability $25.2 M 20% • Total Pension Appropriation (Fiscal 2009) $3.6 M

0% Active Retired 88 90 92 94 96 98 00 02 04 06 08 • Number of Members 360 213 • Total Payroll/Benefit $13.7 M $4.0 M • Average Salary/Benefit $38,000 $18,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 10.1 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.20% 2008 Target 8.00% 2008 Market Value $34.9 M 2004-2008 (Annualized) 3.35% 1985-2008 (Annualized) 7.69%

PERAC ANNUAL REPORT 2008 | 81 1000 Commonwealth Avenue Board Members Board Administrator Newton Newton Centre, MA 02459-1449 Nunzio J. Piselli (Chairperson), Paul Bianchi, Kelly Byrne Phone 617-796-1095 Francis P. Capello, Jr., Kimberly A. Fletcher, Esq., Board Meeting Fax 617-796-1098 David C. Wilkinson Third Wednesday of the month at 3:00 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.1% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $137.9 M • Total Pension Appropriation (Fiscal 2009) $12.8 M

Active Retired • Number of Members 1,764 1,292 • Total Payroll/Benefit $79.2 M $26.6 M • Average Salary/Benefit $44,900 $20,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

Real Estate • Carey Corporate Properties Associates Fund 15 • Fidelity Real Estate Growth Fund II, L.P. General Allocation • PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -27.72% 2008 Target 8.39% 2008 Market Value $201.4 M 2004-2008 (Annualized) 1.63% 1985-2008 (Annualized) 8.28%

82 | PERAC ANNUAL REPORT 2008 480 Neponset Street Board Members Board Administrator Norfolk Building 15 Joseph A. Connolly (Chairperson), John F. Keenen County Canton, MA 02021 Paul J. Connors, Edwin S. Little, Board Meeting Phone 781-821-0664 or 1-800-247-9992 Thomas A. Rorrie, Josephine E. Shea Last Wednesday of each month Fax 781-821-0981

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 65.7% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2022 • Unfunded Liability $311.6 M • Total Pension Appropriation (Fiscal 2009) $38.9 M

Active Retired • Number of Members 5,794 2,813 • Total Payroll/Benefit $223.8 M $51.2 M • Average Salary/Benefit $38,600 $18,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT Domestic Equity • Intercontinental U.S. Real Estate Investment • Boston Company Fund, LLC • Copper Rock Capital Partners, LLC • INVESCO IRT Equity Real Estate Securities Fund • D.E. Shaw Investment Management • Mesirow Financial Institutional Real Estate • Fisher Investments, Inc. International Fund • INTECH Risk Managed Large Cap Growth Fund • PRIT • Munder Capital Management • Sentinel Realty Partners IV & V • Putnam Advisory Company, LLC • SSgA Tuckerman / Property Redevelopment & • RhumbLine Russell 1000 Value Pooled Index Renovation Fund Asset Growth (1999-2008) (Market Value in Millions) Fund • TA Realty Associates Fund V & VII • SSgA Russell 1000 Growth Index Securities • Urdang Value Added Fund II, L.P. Lending Fund Alternative Investments • Voyageur Asset Management Inc. • Ascend Ventures, L.P. International Equity • Ascend Ventures II, L.P. • Evergreen International Small Cap Equity • Boston Millennia Partners, L.P. Strategy • Boston Millennia Partners II, L.P. • Fisher Investments, Inc. • CHL Medical Partners II, L.P. • Lazard Emerging Markets Equity Portfolio • Coller International Partners IV • MFS Institutional Advisors, Inc. • Corsair III Financial Services Capital Partners, L.P. • Globespan Capital Partners V, L.P. Domestic Fixed Income • Halpern Denny Fund II & III, L.P. • Eaton Vance Loan Opportunities Fund, Ltd. • Hamilton Lane Co-Investment Fund II • IR&M Core Bond Fund • Inflection Point Ventures, L.P. Asset Allocation (12/31/08) • Loomis, Sayles & Company, L.P. • INVESCO Venture Partnership Fund IV, L.P. International Fixed Income • Levine Leichtman Capital Partners Deep Value • Evergreen International Bond Fund Fund, L.P. • Lazard Emerging Income Fund • LLM Structured Equity Fund L.P. Real Estate • Mesirow Financial Capital Partners IX • Clarion Lion Properties Fund • Monitor Venture Partners I, L.P. • Intercontinental Real Estate Investment Fund • New England Growth Fund II, L.P. III, LLC • North American Strategic Partners (cont.)

PERAC ANNUAL REPORT 2008 | 83 Norfolk County (cont.)

INVESTMENT (CONT.) • Washington & congress Capital Partners, L.P. Consultant • Wilshire Private Markets Fund II & IV • Wainwright Investment Counsel, LLC Absolute Return / Hedge Fund Custodian • Mesirow Multi-Strategy Fund • State Street • Preferred Investors, L.P. • PRIT Commission Recapture • Donaldson & Company • Rochdale Securities Corporation

2008 Return -28.70% 2008 Target 8.39% 2008 Market Value $433.8 M 2004-2008 (Annualized) 1.11% 1985-2008 (Annualized) 8.13%

84 | PERAC ANNUAL REPORT 2008 P.O. Box 229 Board Members Board Administrator North Adams 85 Main Street, Room 322 James D. Brown (Chairperson), Alan Marden, Beverly Cooper North Adams, MA 01247 Lawrence R. O’Brien, Fred T. Thompson, Esq., Board Meeting Phone 413-663-5185 Kathleen A. Wall Varies Fax 413-664-9412

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.1% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 3.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $17.4 M • Total Pension Appropriation (Fiscal 2009) $2.1 M

Active Retired • Number of Members 386 205 • Total Payroll/Benefit $9.3 M $3.2 M • Average Salary/Benefit $24,200 $15,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 71 • Average Service 9.1 years NA

INVESTMENT

Domestic Equity • de Burlo Group Domestic Fixed Income • de Burlo Group Alternative Investments • PRIT Absolute Return • PRIT Asset Growth (1999-2008) (Market Value in Millions) Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -21.20% 2008 Target 6.10% 2008 Market Value $32.0 M 2004-2008 (Annualized) 3.69% 1985-2008 (Annualized) 9.28%

PERAC ANNUAL REPORT 2008 | 85 500 East Washington Street Board Members Board Administrator North Unit #21 Jack J. Bush (Chairperson), Dorothy H. Baker, Debra A. Bush Attleboro North Attleboro, MA 02760 Lisa Higgins, Patricia A. Shapiro, Board Meeting Phone 508-699-0119 John Kerry Vigorito Fourth Tuesday of each month Fax 508-699-0127

Funded Ratio (1987-2008) ACTUARIAL

100% • Funded Ratio 82.9% • Date of Last Valuation 01/08 80% • Actuary Buck Consultants • Assumed Rate of Return 8.00% 60% • Funding Schedule 4.5% Increasing 40% • Year Fully Funded 2025 • Unfunded Liability $13.1 M 20% • Total Pension Appropriation (Fiscal 2009) $2.2 M

0% Active Retired 88 90 92 94 96 98 00 02 04 06 08 • Number of Members 564 207 • Total Payroll/Benefit $19.9 M $3.4 M • Average Salary/Benefit $35,200 $16,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 72 • Average Service NA NA

INVESTMENT

Domestic Equity • Atlanta Life Investment Advisors, Inc. • Columbia Management Group, Inc. • Navellier & Associates • RhumbLine S&P 500 Pooled Index Fund • Rothschild Asset Management International Equity • Boston Company Non-US Value Equity Fund • Lazard Freres International Equity Fund Asset Growth (1999-2008) (Market Value in Millions) • Vontobel International Fund Domestic Fixed Income • Brandes Investment Partners, L.P. • RhumbLine Lehman Aggregate Pooled Index Fund Real Estate • AmSouth Timber Fund Consultant • Dahab Associates Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -24.21% 2008 Target 8.00% 2008 Market Value $47.8 M 2004-2008 (Annualized) .81% 1985-2008 (Annualized) 7.92%

86 | PERAC ANNUAL REPORT 2008 City Hall, Room 3 Board Members Board Administrator Northampton 210 Main Street Christopher B. Pile (Chairperson), Barbara Weeks Northampton, MA 01060 Joyce Karpinski, Shirley A. LaRose, Board Meeting Phone 413-587-1211 Michael J. Lyons, Thomas Sullivan Last Tuesday or Thursday of each month Fax 413-587-1278

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 66.0% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 7.75% • Funding Schedule 3.61% Increasing • Year Fully Funded 2028 • Unfunded Liability $37 M • Total Pension Appropriation (Fiscal 2009) $3.8 M

Active Retired • Number of Members 626 331 • Total Payroll/Benefit $21.8 M $5.7 M • Average Salary/Benefit $34,800 $17,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 70 • Average Service 10.7 years NA

INVESTMENT

Domestic Equity • de Burlo Group Domestic Fixed Income • de Burlo Group Alternative Investments • PRIT Absolute Return • PRIT Asset Growth (1999-2008) (Market Value in Millions) Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -19.32% 2008 Target 6.00% 2008 Market Value $60.7 M 2004-2008 (Annualized) 4.13% 1985-2008 (Annualized) 9.11%

PERAC ANNUAL REPORT 2008 | 87 Town Hall Board Members Board Administrator Northbridge 7 Main Street John Meagher (Chairperson), Muriel Barry, Beth A. Matson Whitinsville, MA 01588 Paul Mulrenin, Sharon Susienka, Neil Vaidya Board Meeting Phone 508-234-0820 Third Wednesday of each month Fax 508-234-5834

Funded Ratio (1987-2008) ACTUARIAL

100% • Funded Ratio 84.8% • Date of Last Valuation 01/08 80% • Actuary Stone • Assumed Rate of Return 8.00% 60% • Funding Schedule 0.92% Increasing 40% • Year Fully Funded 2016 • Unfunded Liability $4.1 M 20% • Total Pension Appropriation (Fiscal 2009) $1.0 M

0% Active Retired 88 90 92 94 96 98 00 02 04 06 08 • Number of Members 177 104 • Total Payroll/Benefit $6.8 M $1.4 M • Average Salary/Benefit $38,600 $13,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 74 • Average Service 9 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.53% 2008 Target 8.39% 2008 Market Value $16.1 M 2004-2008 (Annualized) 3.56% 1985-2008 (Annualized) 9.13%

88 | PERAC ANNUAL REPORT 2008 Municipal Building Board Members Board Administrator Norwood 566 Washington Street Joseph F. Curran, Eileen P. Hickey, Debra A. Lorenzo Norwood, MA 02062 Ted Mulvehill, Tom O’Toole, Board Meeting Phone 781-762-1240, Ext. 157 Robert M. Thornton Varies Fax 781-278-3024

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 89.7% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $12.4 M • Total Pension Appropriation (Fiscal 2009) $2.1 M

Active Retired • Number of Members 582 363 • Total Payroll/Benefit $25.6 M $6.0 M • Average Salary/Benefit $43,900 $16,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Domestic Equity • Atlanta Capital Management Company, LLC • Boston Company • Legg Mason Capital Management • Mainstay Large Cap Equity Fund • SSgA U.S. Core Opportunities Fund International Equity • EuroPacific Growth Fund

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • OCM High Yield Trust • Standish Mellon EB MBA Aggregate Bond Index Fund Real Estate • PRIT Absolute Return • PRIT Consultant • Mercer Investment Consulting Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -20.57% 2008 Target 10.00% 2008 Market Value $86.5 M 2004-2008 (Annualized) 2.83% 1985-2008 (Annualized) 8.78%

PERAC ANNUAL REPORT 2008 | 89 City Hall Board Members Board Administrator Peabody 24 Lowell Street Richard A. Yagjian (Chairperson), Linda Cavallon Peabody, MA 01960 Joseph DiFranco, Sr., Donna Hopkins, Board Meeting Phone 978-538-5911 John J. McGinn, Patricia Davis Schaffer Varies Fax 978-538-5989

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 60.3% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.25% • Funding Schedule 3.6% Increasing • Year Fully Funded 2028 • Unfunded Liability $78.3 M • Total Pension Appropriation (Fiscal 2009) $8.1 M

Active Retired • Number of Members 834 792 • Total Payroll/Benefit $34.1 M $13.2 M • Average Salary/Benefit $40,900 $16,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.43% 2008 Target 8.39% 2008 Market Value $81.1 M 2004-2008 (Annualized) .20% 1985-2008 (Annualized) 8.18%

90 | PERAC ANNUAL REPORT 2008 114 Fenn Street, Board Members Board Administrator Pittsfield Pittsfield, MA 01201 Gerald E. Miller (Chairperson), Karen Lancto Phone 413-499-9468 Susan M. Carmel, Timothy A. Hannigan, Board Meeting Fax 413-499-9328 James J. Mooney, Edward M. Reilly Varies

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 55.6% • Date of Last Valuation 01/07 • Actuary Stone • Assumed Rate of Return 8.25% • Funding Schedule 2.31% Increasing • Year Fully Funded 2025 • Unfunded Liability $75.4 M • Total Pension Appropriation (Fiscal 2009) $8.2 M

Active Retired • Number of Members 953 731 • Total Payroll/Benefit $28.9 M $11.0 M • Average Salary/Benefit $30,300 $15,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 73 • Average Service 11.5 years NA

INVESTMENT

Alternative Investments • North American Strategic Partners 2006, L.P. Real Estate • Sentinel Realty Partners VI • SSgA Tuckerman / Property Redevelopment & Renovation Fund General Allocation • PRIT Asset Growth (1999-2008) (Market Value in Millions) Consultant • Fiduciary Investment Advisors, LLC

Asset Allocation (12/31/08)

2008 Return -27.45% 2008 Target 8.39% 2008 Market Value $70.9 M 2004-2008 (Annualized) .44% 1985-2008 (Annualized) 7.74%

PERAC ANNUAL REPORT 2008 | 91 10 Cordage Park Circle Board Members Board Administrator Plymouth Suite 240 Thomas M. Kelley (Chairperson), Debra J. Sullivan Plymouth, MA 02360 Lynne Barrett, Shawn H. Duhamel, Board Meeting Phone 508-830-4170 Richard A. Manfredi, John E. Murphy, Jr. Varies Fax 508-830-4019

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 68.7% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 8.25% • Funding Schedule 3.87% Increasing • Year Fully Funded 2022 • Unfunded Liability $54.8 M • Total Pension Appropriation (Fiscal 2009) $6.8 M

Active Retired • Number of Members 1,089 526 • Total Payroll/Benefit $34.2 M $10.0 M • Average Salary/Benefit $31,400 $19,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 68 • Average Service 9.8 years NA

INVESTMENT

Domestic Equity • Boston Advisors, Inc. • Boston Trust & Investment Management Company • Eaton Vance Large Cap Value Fund • SSgA S&P 500 Flagship Fund • Wellington Trust Co.-CIF Research Equity Portfolio • Westfield Large Cap Growth Fund International Equity • Templeton Foreign Equity Series Fund Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • MacKay Shields High Yield Commingled Trust • Wellington Trust Co.-CIF II Core Bond Fund Real Estate • Intercontinental Real Estate Investment Fund IV, LLC • PRIT Alternative Investments • PRIT Absolute Return • PRIT Consultant • Fiduciary Investment Advisors, LLC Asset Allocation (12/31/08) Custodian • State Street

2008 Return -27.88% 2008 Target 8.25% 2008 Market Value $85.1 M 2004-2008 (Annualized) 1.43% 1985-2008 (Annualized) 8.16%

92 | PERAC ANNUAL REPORT 2008 10 Cordage Park Circle Board Members Board Administrator Plymouth Suite 234 Thomas J. O’Brien (Chairperson), William Farmer County North Plymouth, MA 02360 John G. Duggan, James E. Harrington, Board Meeting Phone 508-830-1803 Joseph F. McDonough, John F. Sciara Usually the last Tuesday of each month Fax 508-830-1875

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 61.4% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.3% Increasing • Year Fully Funded 2025 • Unfunded Liability $381.2 M • Total Pension Appropriation (Fiscal 2009) $41.3 M

Active Retired • Number of Members 7,088 3,149 • Total Payroll/Benefit $244.6 M $51.7 M • Average Salary/Benefit $34,500 $16,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 72 • Average Service NA NA

INVESTMENT Domestic Equity • Prudential Real Estate Investors (PRISA Fund) • Fisher Investments, Inc. • SSgA Tuckerman / Multi-Family Development • Independence Investments, LLC Program III • Mesirow Financial Investment Management • SSgA Tuckerman / Property Redevelopment & • RhumbLine Russell 200 Index Fund Renovation Fund • Smith Asset Management Group, L.P. Alternative Investments • Voyageur Asset Management Inc. • Ascend Ventures II, L.P. • Wellington Management Company, LLP • Ascent Venture Partners IV, L.P. International Equity • Charles River Partnership VII, VIII, IX, X, & XI • Acadian International All Cap Fund • Citigroup Venture Capital International Growth Asset Growth (1999-2008) (Market Value in Millions) • Boston Company Emerging Markets Pooled Fund Partnership II, LP • KBC Investment Trust • DN Partners, L.P. • SSgA / Rexiter Active Emerging Markets Fund • DN Partners II, L.P. Domestic Fixed Income • Globespan Capital Partners V, L.P. • Eaton Vance Loan Opportunities Fund, Ltd. • Leeds Weld Equity Partners IV, L.P. • Eaton Vance Management • Levine Leichtman Capital Partners Deep Value • Income Research & Management Fund, L.P. • UBS U.S. Bond Relationship Fund • LODH Euro Choice II • Mesirow Financial Capital Partners IX International Fixed Income • New England Growth Fund I & II, L.P. • Franklin Templeton Emerging Markets Debt • Senior Tour Players Fund I Opportunities Fund • McDonnell Investment Management, LLC Consultant • Wainwright Investment Counsel, LLC Real Estate • BlackRock Apartment Value Fund III, L.P. Custodian Asset Allocation (12/31/08) • Intercontinental Real Estate Investment Fund III • State Street & IV, LLC • INVESCO IRT Equity Real Estate Securities Fund • Mesirow Financial Institutional Real Estate International Fund • Multi-Employer Property Trust

2008 Return -29.07% 2008 Target 9.17% 2008 Market Value $491.1 M 2004-2008 (Annualized) 1.51% 1985-2008 (Annualized) 8.77%

PERAC ANNUAL REPORT 2008 | 93 1250 Hancock Street Board Members Board Administrator Quincy Suite 506S George F. McCray (Chairperson), Edward J. Masterson Quincy, MA 02169 Richard P. Crespi, Robert E. Foy III, Board Meeting Phone 617-376-1075 Roger E. Perfetti Last Wednesday of each month at 10:00 am Fax 617-376-1149

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 65.0% • Date of Last Valuation 01/07 • Actuary Stone • Assumed Rate of Return 8.25% • Funding Schedule 0.51% Increasing • Year Fully Funded 2023 • Unfunded Liability $165.2 M • Total Pension Appropriation (Fiscal 2009) $20.4 M

Active Retired • Number of Members 1,426 1,705 • Total Payroll/Benefit $66.7 M $35.5 M • Average Salary/Benefit $46,800 $20,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 11.3 years NA

INVESTMENT

Domestic Equity Alternative Investments • Earnest Partners, LLC • Goldman Sachs Private Equity Partners Fund 2005 • PENN Small Cap Fund • North American Strategic Partners 2006, L.P. • RhumbLine Russell 1000 Growth Pooled Index Fund • PRIT • RhumbLine Russell 1000 Value Pooled Index Fund General Allocation • RhumbLine S&P Mid-Cap 400 Pooled Index Fund • PRIT International Equity Absolute Return • Aberdeen DBT Emerging Markets Equity Fund • PRIT • INVESCO IRT International Equity Fund Asset Growth (1999-2008) (Market Value in Millions) • Victory Capital Series, LLC Series C Consultant • Meketa Investment Group Domestic Fixed Income • Post Traditional High Yield Fund, L.P. Custodian • SSgA Passive Bond Market Index SL Fund • State Street • SSgA Treasury Inflation Protected Securities (TIPS) Fund International Fixed Income • Artio Global High Income Fund Real Estate • AEW Partners V, L.P. • Hancock Timberland IX Fund • UBS (US) Trumbull Property Fund LP Asset Allocation (12/31/08) • UBS (US) Trumbull Property Income Fund LP

2008 Return -24.69% 2008 Target 8.25% 2008 Market Value $224.3 M 2004-2008 (Annualized) 1.72% 1985-2008 (Annualized) 7.95%

94 | PERAC ANNUAL REPORT 2008 16 Lowell Street Board Members Board Administrator Reading Reading, MA 01867 Joseph R. Veno (Chairperson), Colleen Loughlin Phone 781-942-9007 Francis P. Driscoll, Richard P. Foley, Board Meeting Fax 781-942-9037 Gail LaPointe, Daniel B. Seferian Third of fourth Wednesday of each month at 6:00 pm

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 75.7% • Date of Last Valuation 07/07 • Actuary Segal • Assumed Rate of Return 7.75% • Funding Schedule 1.5% Increasing • Year Fully Funded 2024 • Unfunded Liability $27.2 M • Total Pension Appropriation (Fiscal 2009) $3.6 M

Active Retired • Number of Members 352 327 • Total Payroll/Benefit $18.4 M $6.3 M • Average Salary/Benefit $52,300 $19,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 NA • Average Service 13.6 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.42% 2008 Target 8.39% 2008 Market Value $70.2 M 2004-2008 (Annualized) 3.60% 1985-2008 (Annualized) 9.03%

PERAC ANNUAL REPORT 2008 | 95 City Hall Board Members Board Administrator Revere 281 Broadway Laurie Giardella (Chairperson), Carolyn M. Russo Revere, MA 02151 Antonio Cafarelli, Michael Conley, Board Meeting Phone 781-286-8173 Steven Parsons, David Petrilli Varies Fax 781-286-3316

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 59.4% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 2.6% Increasing • Year Fully Funded 2023 • Unfunded Liability $66.4 M • Total Pension Appropriation (Fiscal 2009) $9.1 M

Active Retired • Number of Members 487 554 • Total Payroll/Benefit $23.6 M $11.5 M • Average Salary/Benefit $48,400 $20,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 49 74 • Average Service 12.3 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -28.46% 2008 Target 8.39% 2008 Market Value $74.9 M 2004-2008 (Annualized) 3.42% 1985-2008 (Annualized) 7.95%

96 | PERAC ANNUAL REPORT 2008 20 Central Street Board Members Board Administrator Salem Suite 110 Katherine O’Leary (Chairperson), Marcia A. Pelletier Salem, MA 01970 John H. Burke, Jr., Kimberly Driscoll, Board Meeting Phone 978-745-8983 John P. O’Leary, Richard J. Viscay Last Thursday of each month Fax 978-745-4216

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 55.7% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 3.5% Increasing • Year Fully Funded 2025 • Unfunded Liability $79.4 M • Total Pension Appropriation (Fiscal 2009) $9.3 M

Active Retired • Number of Members 825 596 • Total Payroll/Benefit $34.4 M $10.9 M • Average Salary/Benefit $41,700 $18,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 NA • Average Service 11.6 years NA

INVESTMENT

Real Estate • Fidelity Real Estate Growth Fund II, L.P. Alternative Investments • Ascent Venture Partners III, L.P. • First America Asia Fund I L.P. • Zero Stage Capital VII, L.P. General Allocation • PRIT Asset Growth (1999-2008) (Market Value in Millions) Consultant • Segal Advisors Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -28.94% 2008 Target 8.25% 2008 Market Value $71.9 M 2004-2008 (Annualized) .55% 1985-2008 (Annualized) 7.72%

PERAC ANNUAL REPORT 2008 | 97 Town Hall Annex Board Members Board Administrator Saugus 25 Main Street Henry E. MacKenzie (Chairperson), Ann C. Quinlan Saugus, MA 01906 William E. Cross, III, Eugene Decareau, Board Meeting Phone 781-231-7656 Doreen L. DiBari, Joan Regan First Thursday of each month Fax 781-231-4067

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 66.3% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 3.0% Increasing • Year Fully Funded 2022 • Unfunded Liability $28.4 M • Total Pension Appropriation (Fiscal 2009) $4.0 M

Active Retired • Number of Members 348 297 • Total Payroll/Benefit $14.2 M $5.3 M • Average Salary/Benefit $40,900 $17,700 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 11.6 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.32% 2008 Target 8.39% 2008 Market Value $45.1 M 2004-2008 (Annualized) 3.53% 1985-2008 (Annualized) 8.96%

98 | PERAC ANNUAL REPORT 2008 100 Maple Avenue Board Members Board Administrator Shrewsbury Shrewsbury, MA 01545 Kevin M. McNeil (Chairperson), Gail A. Sokolowski Phone 508-841-8510 Ann M. Dagle, Jay Montgomery, Board Meeting Fax 508-842-0587 Caryn M. Shea, Mary E. Thompson Usually meets the fourth Wednesday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 77.0% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2022 • Unfunded Liability $19.6 M • Total Pension Appropriation (Fiscal 2009) $3.1 M

Active Retired • Number of Members 648 221 • Total Payroll/Benefit $22.4 M $4.2 M • Average Salary/Benefit $35,600 $18,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

Domestic Equity • Atlanta Capital Management Company, Inc. • C.S. McKee, L.P. • Independence Investments LLC • Marvin & Palmer U.S. Equity, L.P. International Equity • SSgA All International Allocation Common Trust Fund Domestic Fixed Income Asset Growth (1999-2008) (Market Value in Millions) • IR&M Core Bond Fund General Allocation • PRIT Consultant • Dahab Associates Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -27.58% 2008 Target 8.50% 2008 Market Value $48.9 M 2004-2008 (Annualized) 1.61% 1985-2008 (Annualized) 8.57%

PERAC ANNUAL REPORT 2008 | 99 City Hall Annex Board Members Board Administrator Somerville 50 Evergreen Avenue John M. Memory (Chairperson), Mary A. Phinney Somerville, MA 02145 Edward F. Bean, Jr., Lawrence Murphy, Board Meeting Phone 617-625-6600 Mary A. Phinney, John E. Rourke Third Thursday of each month at 8:30 am Fax 617-666-4325

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 62.9% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.25% • Funding Schedule 4.0% Increasing • Year Fully Funded 2022 • Unfunded Liability $98.9 M • Total Pension Appropriation (Fiscal 2009) $12.5 M

Active Retired • Number of Members 1,019 872 • Total Payroll/Benefit $48.8 M $16.1 M • Average Salary/Benefit $47,900 $18,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Domestic Equity • Congress Asset Management • Keeley Asset Management • RhumbLine S&P 500 Pooled Index Fund • RhumbLine S&P Small Cap Pooled Index Fund International Equity • Lazard Emerging Markets Equity Portfolio • Lazard Freres International Equity Fund

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • Cypress Asset Management • Loomis Sayles Fixed Income Fund Real Estate • BlackRock Apartment Value Fund III, L.P. • UBS (US) Trumbull Property Fund LP Alternative Investments • Crescent Gate Partners, LLC Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -26.27% 2008 Target 8.25% 2008 Market Value $133.8 M 2004-2008 (Annualized) 2.47% 1985-2008 (Annualized) 8.21%

100 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Southbridge 41 Elm Street George Fournier (Chairperson), Mary E. St. Germain Southbridge, MA 01550 Melinda Ernst, Peter Hapgood, Board Meeting Phone 508-765-4903 Karen Harnois, Julie Pena Last Wednesday of each month at 10:00 am Fax 508-765-0902

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 58.6% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2026 • Unfunded Liability $19.6 M • Total Pension Appropriation (Fiscal 2009) $2.4 M

Active Retired • Number of Members 319 163 • Total Payroll/Benefit $10.6 M $2.5 M • Average Salary/Benefit $33,400 $15,200 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 72 • Average Service 9.9 years NA

INVESTMENT

Domestic Equity • Independence Small Cap Fund • Voyageur Equity Style Fund • Voyageur Large Cap Growth Fund • Voyageur Large Cap Value Fund International Equity • INVESCO IRT International Equity Fund • Voyageur International Fund

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • Pyramis Core Plus Commingled Pool • Voyageur Asset Management Inc. • Voyageur Core Plus Fixed Income Fund Real Estate • INVESCO Core Real Estate Fund • INVESCO IRT Equity Real Estate Securities Fund Consultant • Segal Advisors Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -30.35% 2008 Target 8.00% 2008 Market Value $17.3 M 2004-2008 (Annualized) -.40% 1985-2008 (Annualized) 7.70%

PERAC ANNUAL REPORT 2008 | 101 70 Tapley Street Board Members Interim Board Administrator Springfield Springfield, MA 01104 Mark Ianello (Chairperson), Nancy Long Phone 413-787-6090 Thomas F. Gloster, III, Esq., Philip Mantoni, Board Meeting Fax 413-787-6046 Gerald L. Michaelian, Robert P. Moynihan, Varies Mayor Domenic Sarno

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 42.4% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $402.5 M • Total Pension Appropriation (Fiscal 2009) $31.7 M

Active Retired • Number of Members 3,457 2,799 • Total Payroll/Benefit $126.5 M $48.7 M • Average Salary/Benefit $36,600 $17,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Alternative Investments • Ascend Ventures, L.P. • Boston Millennia Partners, L.P. • Boston Millennia Partners II, L.P. • Crescendo IV, L.P. • Crescendo World Fund • DN Partners • Ticonderoga e-Services I, L.P. General Allocation Asset Growth (1999-2008) (Market Value in Millions) • PRIT

Asset Allocation (12/31/08)

2008 Return -28.57% 2008 Target 8.39% 2008 Market Value $214.0 M 2004-2008 (Annualized) 2.04% 1985-2008 (Annualized) 7.98%

102 | PERAC ANNUAL REPORT 2008 Boston Office Board Members Board Administrator State One Ashburton Place Treasurer Timothy P. Cahill (Chairperson), Nicola Favorito, Esq. Room 1219 Christopher S. Condon, Peter J. Koutoujian, Board Meeting Boston, MA 02108 Sr., Theresa McGoldrick, Esq., Ralph White Last Thursday of each month Phone 617-367-7770 Fax 617-723-1438

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 89.4% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2025 • Unfunded Liability $2.4 B • Total Pension Appropriation (Fiscal 2009) $422.2 M

Active Retired • Number of Members 85,602 50,495 • Total Payroll/Benefit $4.6 B $1,162.1 M • Average Salary/Benefit $53,400 $23,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 72 • Average Service 12.8 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Billions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.55% 2008 Target 8.39% 2008 Market Value $15.4 B 2004-2008 (Annualized) 3.56% 1985-2008 (Annualized) 9.26%

PERAC ANNUAL REPORT 2008 | 103 One Charles Park Board Members Board Administrator State Teachers Cambridge, MA 02142-1206 Jeff Wulfson (Chairperson), Joan Schloss New Board Name Phone 617-679-MTRS (6877) Treasurer Timothy P. Cahill, Auditor A. Joseph Board Meeting DeNucci, John A. M. Dow, Jr., Nicola Favorito, (Effective May 15, 2006): Fax 617-679-1661 Ellen T. Hargraves, Karen A. Mitchell, John W. Varies Massachusetts Teachers Parsons, Linda M. Ruberto

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 73.9% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 4.5% Increasing • Year Fully Funded 2025 • Unfunded Liability $8.1 B • Total Pension Appropriation (Fiscal 2009) $891.9 M

Active Retired • Number of Members 89,636 50,024 • Total Payroll/Benefit $5.2 B $1,718.2 M • Average Salary/Benefit $57,600 $34,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 44 70 • Average Service 12.9 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Billions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.55% 2008 Target 8.39% 2008 Market Value $17.2 B 2004-2008 (Annualized) 3.56% 1985-2008 (Annualized) 9.27%

104 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Stoneham 35 Central Street Janice T. Houghton (Chairperson), Karen DeAngelis Stoneham, MA 02180-2087 Cosmo M. Ciccarello, Ronald Florino, Board Meeting Phone 781-279-2635 James J. McDermott, Jr., Elsie M. Wallace Last Tuesday of each month at 2:00 pm Fax 781-438-6906

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 68.2% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 3.5% Increasing • Year Fully Funded 2020 • Unfunded Liability $25.4 M • Total Pension Appropriation (Fiscal 2009) $3.7 M

Active Retired • Number of Members 290 289 • Total Payroll/Benefit $11.6 M $4.9 M • Average Salary/Benefit $39,900 $16,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation (12/31/08)

2008 Return -29.28% 2008 Target 8.39% 2008 Market Value $45.5 M 2004-2008 (Annualized) 3.58% 1985-2008 (Annualized) 8.42%

PERAC ANNUAL REPORT 2008 | 105 25 Railroad Avenue Board Members Board Administrator Swampscott Suite 4 John T. Kiely, Jr. (Chairperson), John F. Behen, Richard P. DiPesa, Esq. Swampscott, MA 01907 Jr., David Castellarin, Francis E. Delano, Jr., Board Meeting Phone 781-596-8827 Thomas H. Driscoll, Jr., Esq. Generally the third Wednesday of each Fax 781-596-8899 month at 9:00 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 51.6% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $31.8 M • Total Pension Appropriation (Fiscal 2009) $3.0 M

Active Retired • Number of Members 252 222 • Total Payroll/Benefit $10.8 M $4.2 M • Average Salary/Benefit $43,000 $18,800 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 NA • Average Service 11.4 years NA

INVESTMENT

Domestic Equity • Chase Investment Counsel Corporation • Eaton Vance Large Cap Value Fund • Independence SMID Core Fund International Equity • Artio International Equity Fund II • INVESCO IRT International Equity Fund Domestic Fixed Income Asset Growth (1999-2008) (Market Value in Millions) • Montgomery US Core Fixed Income Fund Real Estate • American Core Realty Fund, LLC • Intercontinental Real Estate Investment Fund III, LLC Alternative Investments • Piper Jaffray Private Equity Partners II Absolute Return • PRIT Consultant • Fiduciary Investment Advisors, LLC Custodian • State Street Asset Allocation (12/31/08)

2008 Return -23.19% 2008 Target 8.25% 2008 Market Value $25.6 M 2004-2008 (Annualized) 3.04% 1985-2008 (Annualized) 9.00%

106 | PERAC ANNUAL REPORT 2008 40 Dean Street, Unit 3 Board Members Board Administrator Taunton Taunton, MA 02780 Ann Marie Hebert (Chairperson), Paul J. Slivinski Phone 508-821-1052 Richard T. Avila, Peter H. Corr, Board Meeting Fax 508-821-1063 Shauna McCarty, A. Joan Ventura Varies

Funded Ratio (1987-2008) ACTUARIAL

100% • Funded Ratio 68.1% • Date of Last Valuation 01/08 80% • Actuary Buck Consultants • Assumed Rate of Return 8.00% 60% • Funding Schedule 4.5% Increasing 40% • Year Fully Funded 2022 • Unfunded Liability $89.8 M 20% • Total Pension Appropriation (Fiscal 2009) $11.0 M

0% Active Retired 88 90 92 94 96 98 00 02 04 06 08 • Number of Members 1,213 734 • Total Payroll/Benefit $51.0 M $14.9 M • Average Salary/Benefit $42,000 $20,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 71 • Average Service NA NA

INVESTMENT

Domestic Equity • BlackRock Investment Management / Vesey • Boston Trust & Investment Management Company Street Fund IV (ERISA), L.P. • Daruma Asset Management Consultant • SSgA Equity Index Plus Securities Lending Fund • Dahab Associates International Equity Custodian • Boston Company Non-US Value Equity Fund • State Street • Earnest International Pooled Group Trust • EuroPacific Growth Fund

Asset Growth (1999-2008) (Market Value in Millions) Domestic Fixed Income • Wellington Trust Co.-CIF II Core Bond Plus Portfolio Real Estate • Fidelity Real Estate Growth Fund, L.P. • Fidelity Real Estate Growth Fund III, L.P. • Intercontinental Real Estate Investment Fund III, LLC • INVESCO Core Real Estate Fund • INVESCO IRT Equity Real Estate Securities Fund Alternative Investments • Boston Millennia Partners, L.P. • Boston Millennia Partners II, L.P. • INVESCO International Partnership Fund IV, L.P. Asset Allocation (12/31/08) • INVESCO U.S. LBO & Corporate Finance Partner- ship Fund IV, L.P. • INVESCO Venture Partnership Fund IV, L.P.

2008 Return -24.31% 2008 Target 8.00% 2008 Market Value $138.5 M 2004-2008 (Annualized) 1.89% 1985-2008 (Annualized) 9.28%

PERAC ANNUAL REPORT 2008 | 107 1 Lafayette Street Board Members Board Administrator Wakefield Wakefield, MA 01880 Kevin Gill (Chairperson), Daniel Calore, Cathy Cheek Phone 781-246-6396 Richard J. DeFelice, Philip Rogers, Sr., Board Meeting Fax 781-246-2400 Daniel Sherman Third Thursday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 80.6% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2023 • Unfunded Liability $22.1 M • Total Pension Appropriation (Fiscal 2009) $3.4 M

Active Retired • Number of Members 443 346 • Total Payroll/Benefit $18.6 M $6.5 M • Average Salary/Benefit $41,900 $18,700 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 49 74 • Average Service 12.9 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.50% 2008 Target 8.39% 2008 Market Value $69.0 M 2004-2008 (Annualized) 3.54% 1985-2008 (Annualized) 9.53%

108 | PERAC ANNUAL REPORT 2008 610 Main Street Board Members Board Administrator Waltham Waltham, MA 02452 William R. MacDonald (Chairperson), Joseph F. Juppé Phone 781-314-3230 John J. Gorman, Thomas J. Magno, Board Meeting Fax 781-314-3236 Dennis P. Quinn, William F. Wiggin Varies

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 64.4% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 2.5% Increasing • Year Fully Funded 2019 • Unfunded Liability $89.4 M • Total Pension Appropriation (Fiscal 2009) $13.2 M

Active Retired • Number of Members 884 769 • Total Payroll/Benefit $45.1 M $20.6 M • Average Salary/Benefit $51,100 $26,700 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 73 • Average Service NA NA

INVESTMENT

Real Estate • Geometry Real Estate III, L.P. • Intercontinental Real Estate Investment Fund III, LLC • SSgA Tuckerman / Residential Income and Value Added (RIVA) Fund Alternative Investments • Ascent Venture Partners III, L.P. • INVESCO Non-U.S. Partnership Fund II, L.P. • INVESCO U.S. Buyout Partnership Fund II, L.P. Asset Growth (1999-2008) (Market Value in Millions) • INVESCO Venture Partnership Fund III, L.P. • Precision Capital Special Opportunities Fund III, LLC • RCP Fund IV, L.P. • VSS Mezzanine Partners, L.P. General Allocation • PRIT Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -24.67% 2008 Target 8.39% 2008 Market Value $125.2 M 2004-2008 (Annualized) 2.25% 1985-2008 (Annualized) 8.48%

PERAC ANNUAL REPORT 2008 | 109 P. O. Box 199 Board Members Board Administrator Watertown 149 Main Street Thomas V. Thibaut, Jr. (Chairperson), Barbara A. Sheehan Watertown, MA 02471-0199 Domenic Arone, James I. Bean, Board Meeting Phone 617-972-6456, 888-972-6456 (toll free) John T. Loughran, Thomas J. Tracy Varies Fax 617-923-3531

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 69.0% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2017 • Unfunded Liability $43.5 M • Total Pension Appropriation (Fiscal 2009) $7.4 M

Active Retired • Number of Members 514 405 • Total Payroll/Benefit $24.7 M $9.1 M • Average Salary/Benefit $48,000 $22,500 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 71 • Average Service NA NA

INVESTMENT Domestic Equity • Fisher Investments, Inc. • Wellington Trust Co.-CIF Small Cap 2000 Fund • Wellington Trust Co.-CIF Mid Cap Growth Portfolio International Equity • Earnest International Pooled Group Trust Domestic Fixed Income • IR&M Core Bond Fund

Asset Growth (1999-2008) (Market Value in Millions) Real Estate • Arsenal Real Estate Fund IA, L.P. • Intercontinental Real Estate Investment Fund III & IV, LLC • New Boston Institutional Fund, L.P. VI Alternative Investments • Auda Ventures, L.P. • Novo Vita, L.P. • Novus Ventures II, L.P. • RCP Fund IV, LP General Allocation • PRIT Consultant Asset Allocation (12/31/08) • Segal Advisors Custodian • State Street

2008 Return -26.16% 2008 Target 8.50% 2008 Market Value $70.5 M 2004-2008 (Annualized) 1.79% 1985-2008 (Annualized) 7.86%

110 | PERAC ANNUAL REPORT 2008 Municipal Building Board Members Board Administrator Webster 350 Main Street, Suite 5 Daniel Bonnette (Chairperson), Gerry Wentworth Webster, MA 01570 Eleanor P. Doros, Paul J. Minarik, Board Meeting Phone 508-949-3800, ext.1022 Louis T. Polletta, Pamela A. Regis Third Wednesday of each month Fax 508-949-3826

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 49.4% • Date of Last Valuation 01/08 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2026 • Unfunded Liability $19.3 M • Total Pension Appropriation (Fiscal 2009) $1.9 M

Active Retired • Number of Members 231 124 • Total Payroll/Benefit $7.7 M $2.0 M • Average Salary/Benefit $33,400 $16,100 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 46 73 • Average Service 11.7 years NA

INVESTMENT

Domestic Equity • RhumbLine Russell 1000 Pooled Index Fund • RhumbLine S&P Mid-Cap 400 Pooled Index Fund • RhumbLine S&P Small Cap Pooled Index Fund International Equity • INVESCO IRT International Equity Fund Domestic Fixed Income • Loomis Sayles Investment Grade Fixed Income Fund Asset Growth (1999-2008) (Market Value in Millions) Real Estate • PRIT Alternative Investments • PRIT Absolute Return • PRIT Consultant • Wainwright Investment Counsel, LLC Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -27.20% 2008 Target 8.70% 2008 Market Value $13.5 M 2004-2008 (Annualized) 1.90% 1985-2008 (Annualized) 7.31%

PERAC ANNUAL REPORT 2008 | 111 Town Hall Board Members Board Administrator Wellesley 525 Washington Street David N. Kornwitz (Chairperson), Laurie A. Lizak Wellesley, MA 02482 Joan Donahue, Richard C. Gerard, Board Meeting Phone 781-431-1019, ext. 2216 or 2217 Derek B. Knight, Sheryl Strother Third or fourth Wednesday of the month at Fax 781-239-1043 7:30 am

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 106.1% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.00% • Funding Schedule Fully Funded • Year Fully Funded NA • Unfunded Liability -$8.3 M • Total Pension Appropriation (Fiscal 2009) 0

Active Retired • Number of Members 669 407 • Total Payroll/Benefit $30.3 M $8.1 M • Average Salary/Benefit $45,200 $19,900 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 45 NA • Average Service 9.5 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -29.36% 2008 Target 8.39% 2008 Market Value $96.7 M 2004-2008 (Annualized) 1.97% 1985-2008 (Annualized) 9.93%

112 | PERAC ANNUAL REPORT 2008 26 Central Street Board Members Board Administrator West Suite 26 Raymond N. Spear (Chairperson), Ann Wojcik Springfield West Springfield, MA 01089-2766 Gerard P. Connor, Jr., Stephen P. Hayes, Board Meeting Phone 413-263-3013 and 3201 Richard S. Sullivan, Sharon Wilcox Varies Fax 413-263-3198

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 67.2% • Date of Last Valuation 01/08 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule 3.83% Increasing • Year Fully Funded 2026 • Unfunded Liability $41.6 M • Total Pension Appropriation (Fiscal 2009) $4.8 M

Active Retired • Number of Members 592 368 • Total Payroll/Benefit $21.4 M $5.6 M • Average Salary/Benefit $36,100 $15,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 74 • Average Service 11.8 years NA

INVESTMENT

Domestic Equity • Chase Investment Counsel Corporation • Systematic Financial Management Domestic Fixed Income • Longfellow Investment Management Real Estate • AmSouth Timber Fund General Allocation Asset Growth (1999-2008) (Market Value in Millions) • PRIT Consultant • Dahab Associates Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -21.90% 2008 Target 8.00% 2008 Market Value $53.2 M 2004-2008 (Annualized) 1.94% 1985-2008 (Annualized) 7.68%

PERAC ANNUAL REPORT 2008 | 113 P. O. Box 106 Board Members Board Administrator Westfield 59 Court Street Kevin J. Regan (Chairperson), John E. Kane, Lynn E. Rea Westfield, MA 01086-0106 Richard F. Russell, Michael Sacco, Board Meeting Phone 413-572-6239 Deborah A. Strycharz Third Thursday of each month at 3:00 pm Fax 413-572-6290

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 74.0% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 4.5% Increasing • Year Fully Funded 2024 • Unfunded Liability $45.6 M • Total Pension Appropriation (Fiscal 2009) $6.4 M

Active Retired • Number of Members 937 526 • Total Payroll/Benefit $33.0 M $8.8 M • Average Salary/Benefit $35,200 $16,700 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 72 • Average Service 11.6 years NA

INVESTMENT

Domestic Equity • Congress Trust, N.A. • INTECH Institutional Large Cap Growth Fund • Loomis, Sayles & Company, L.P. • Loomis Sayles Small Cap Value Fund • Voyageur Large Cap Value Fund Domestic Fixed Income • Hartford Institutional Trust – Core Plus Fixed Income Series Asset Growth (1999-2008) (Market Value in Millions) • Income Research & Management • Voyageur Core Plus Fixed Income Fund Custodian • State Street

Asset Allocation (12/31/08)

2008 Return -24.96% 2008 Target 9.17% 2008 Market Value $106.8 M 2004-2008 (Annualized) 1.26% 1985-2008 (Annualized) 8.02%

114 | PERAC ANNUAL REPORT 2008 807 Broad Street Board Members Board Administrator Weymouth Weymouth, MA 02189 Greg Hargadon (Chairperson), Marsha P. Silva Phone 781-331-8721 Joseph L. Davis, Frank S. Lagrotteria, Board Meeting Fax 781-331-3005 Edward Masterson, James A. Wilson Third Tuesday of each month, unless other- wise posted

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 71.9% • Date of Last Valuation 01/07 • Actuary Stone • Assumed Rate of Return 8.00% • Funding Schedule 1.35% Increasing • Year Fully Funded 2021 • Unfunded Liability $53.6 M • Total Pension Appropriation (Fiscal 2009) $8.0 M

Active Retired • Number of Members 856 633 • Total Payroll/Benefit $34.8 M $11.6 M • Average Salary/Benefit $40,700 $18,300 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 77 • Average Service 10.5 years NA

INVESTMENT

Domestic Equity Consultant • Boston Company Dynamic Equity Fund • Fiduciary Investment Advisors, LLC • Loomis Sayles Small Midcap Core Trust Custodian • PENN Small to Mid Cap Equity Fund, L.P. • State Street • RhumbLine S&P 500 Pooled Index Fund • Westfield Large Cap Growth Fund International Equity • Artio International Equity Fund II • SSgA All International Allocation Common Asset Growth (1999-2008) (Market Value in Millions) Trust Fund Domestic Fixed Income • Pyramis Core Plus Commingled Pool Real Estate • Intercontinental Real Estate Investment Fund III, LLC • PRIT Alternative Investments • INVESCO International Partnership Fund IV, L.P. • INVESCO U.S. LBO & Corporate Finance Partnership Fund IV, L.P. • INVESCO Venture Partnership Fund IV, L.P. Asset Allocation (12/31/08) Absolute Return • PRIT

2008 Return -27.95% 2008 Target 8.00% 2008 Market Value $102.4 M 2004-2008 (Annualized) 2.23% 1985-2008 (Annualized) 9.64%

PERAC ANNUAL REPORT 2008 | 115 71 Mount Vernon Street Board Members Board Administrator Winchester Winchester, MA 01890 William P. Duran, Jr., James B. Gray, Brian Karen Manchuso Phone 781-721-7127 Keveny, George F. Morrissey, William Zink Board Meeting Fax 781-721-7156 Varies

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 81.5% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.00% • Funding Schedule 1.5% Increasing • Year Fully Funded 2021 • Unfunded Liability $16.6 M • Total Pension Appropriation (Fiscal 2009) $3.2 M

Active Retired • Number of Members 353 299 • Total Payroll/Benefit $15.9 M $5.1 M • Average Salary/Benefit $44,900 $17,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 48 74 • Average Service 12 years NA

INVESTMENT

Domestic Equity • J.L. Kaplan Associates • SSgA S&P 500 Flagship Fund International Equity • SSgA Active International Small Cap SL Common Trust Fund • SSgA Daily Active Emerging Markets Fund • SSgA Daily International Alpha Securities Lending Fund Asset Growth (1999-2008) (Market Value in Millions) • SSgA International Alpha Select Securities Lending Fund Domestic Fixed Income • PRIT • Wellington Trust Co.-CIF II Core Bond Fund Real Estate • Guggenheim Real Estate Plus Fund • SSgA Tuckerman / Multi-Family Development Program III • TA Realty Associates Fund VI Absolute Return • PRIT Asset Allocation (12/31/08) Inflation Hedge Product • SSgA Real Asset Strategy Custodian • State Street

2008 Return -25.72% 2008 Target 8.00% 2008 Market Value $65.0 M 2004-2008 (Annualized) 3.52% 1985-2008 (Annualized) 9.15%

116 | PERAC ANNUAL REPORT 2008 Town Hall Board Members Board Administrator Winthrop 1 Metcalf Square Michael Bertino (Chairperson), Eric Cocca, Barbara O’Brien Winthrop, MA 02152 Michael McManus, Brian Perrin, Cindy Silva Board Meeting Phone 617-539-5750 Last Monday of the month at 5:30 pm Fax 617-539-0820

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 69.4% • Date of Last Valuation 01/07 • Actuary PERAC • Assumed Rate of Return 8.25% • Funding Schedule 2.0% Increasing • Year Fully Funded 2019 • Unfunded Liability $14.7 M • Total Pension Appropriation (Fiscal 2009) $2.6 M

Active Retired • Number of Members 266 170 • Total Payroll/Benefit $10.0 M $2.6 M • Average Salary/Benefit $37,500 $15,400 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 49 74 • Average Service 11.3 years NA

INVESTMENT

• PRIT

Asset Growth (1999-2008) (Market Value in Millions)

Asset Allocation See page 121 for PRIT asset allocation chart.

2008 Return -28.05% 2008 Target 8.39% 2008 Market Value $30.0 M 2004-2008 (Annualized) 3.22% 1985-2008 (Annualized) 8.35%

PERAC ANNUAL REPORT 2008 | 117 City Hall, Second Floor Board Members Board Administrator Woburn 10 Common Street Gerald W. Surette (Chairperson), Maureen T. Marcucci Woburn, MA 01801-4139 Denis P. Devine, A. John Flaherty, Board Meeting Phone 781-897-5820 Michael J. Gorman, Marilou E. Lundin Varies Fax 781-897-5824

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 77.9% • Date of Last Valuation 01/08 • Actuary Buck Consultants • Assumed Rate of Return 8.00% • Funding Schedule 4.0% Increasing • Year Fully Funded 2022 • Unfunded Liability $30.1 M • Total Pension Appropriation (Fiscal 2009) $4.4 M

Active Retired • Number of Members 580 405 • Total Payroll/Benefit $24.3 M $6.7 M • Average Salary/Benefit $41,800 $16,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

Domestic Equity • INVESCO Venture Partnership Fund III, L.P. • BlackRock Small Cap Growth Equity Fund • Wilshire Private Markets Fund VII • Earnest Partners, LLC Emerging Markets • RhumbLine Russell 1000 Pooled Index Fund • PRIT • Turner Investment Partners, Inc. Absolute Return International Equity • PRIT • PRIT Consultant Domestic Fixed Income • Wainwright Investment Counsel, LLC Asset Growth (1999-2008) (Market Value in Millions) • Earnest Partners, LLC • Eaton Vance Loan Opportunities Fund, Ltd. Custodian • Loomis Sayles Institutional High Income Fund • State Street • SSgA Treasury Inflation Protected Securities (TIPS) Fund Real Estate • Intercontinental Real Estate Investment Fund II & III, LLC • PRIT • SSgA Tuckerman / Multi-Family Development Program III • SSgA Tuckerman / Property Redevelopment & Renovation Fund • TA Realty Associates Fund V Asset Allocation (12/31/08) Alternative Investments • Charlesbank Equity Fund V & VI • INVESCO Non-U.S. Partnership Fund III, L.P. • INVESCO U.S. Buyout & Expansion Capital Partnership Fund III, L.P. 2008 Return -26.63% 2008 Target 9.03% 2008 Market Value $77.8 M 2004-2008 (Annualized) 2.05% 1985-2008 (Annualized) 8.91%

118 | PERAC ANNUAL REPORT 2008 City Hall, Room 103 Board Members Board Administrator Worcester 455 Main Street James DelSignore (Chairperson), Elizabeth A. Early Worcester, MA 01608 Elizabeth A. Early, John F. Mahan, Board Meeting Phone 508-799-1062 Thomas M. Wade, Stephen F. Wentzell Second and Third Thursday of each month Fax 508-799-1047

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 85.3% • Date of Last Valuation 01/08 • Actuary Segal • Assumed Rate of Return 8.25% • Funding Schedule 4.0% Increasing • Year Fully Funded 2019 • Unfunded Liability $130.5 M • Total Pension Appropriation (Fiscal 2009) $24.9 M

Active Retired • Number of Members 3,299 2,849 • Total Payroll/Benefit $159.7 M $53.0 M • Average Salary/Benefit $48,400 $18,600 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age 47 NA • Average Service 13.4 years NA

INVESTMENT Domestic Equity • PRIT • Columbia Management Group, Inc. Alternative Investments • Enhanced Investment Technologies (INTECH) • Ascent Venture Partners II, III, IV, & V L.P. • Loomis, Sayles & Company, L.P. • Boston Capital Ventures III • Penn Capital Management Company, Inc. • Boston Millennia Partners II & III, L.P. • SSgA Russell 1000 Value SL Fund • Charlesbank Equity Fund V & VI • SSgA S&P 500 Flagship Fund • Concord Partners III, L.P. • SSgA S&P Mid Cap Index SL Fund • Duke Street Capital Fund III International Equity • European Strategic Partners I, L.P. • Acadian International Small Cap Fund • Global Infrastructure Partners Fund I • Boston Company EAFE Value Fund • Harvest Partners V, L.P. Asset Growth (1999-2008) (Market Value in Millions) • Lazard Emerging Markets Equity Portfolio • INVESCO Non-U.S. Partnership Fund II, L.P. • SSgA Daily EAFE Index Securities Lending Fund • INVESCO U.S. Buyout Partnership Fund II, L.P. • SSgA MSCI-EAFE Index Securities Lending Fund • INVESCO U.S. Venture Partnership Fund III, L.P. Domestic Fixed Income • INVESCO Venture Partnership Fund II, L.P. • Loomis, Sayles & Company, L.P. • New England Growth Fund I & II, L.P. • Opus Investment Management, Inc. • Newstone Capital Partners, L.P. • Northstar Mezzanine Partners III, IV, & V Real Estate • Riverside Capital Appreciation Fund 2000 & 2003 • Bailard Real Estate Investment Trust I • Riverside Capital Appreciation Fund V • Hancock Timberland VII • Riverside Capital Europe Fund III • Heitman Value Partners, L.P. • Standard Life European Strategic Partners Fund 2006 • Intercontinental Real Estate Investment Fund IV, LLC • Vitruvian Investment Partnership I • INVESCO Core Real Estate Fund • PRIT Global Balanced • RMK Balanced Timberland Fund B • Mellon Global Alpha I Fund • RMK Select Timberland Investment Fund I & II, LLC • PIMCO All Asset Fund • RREEF Global Real Estate Securities Fund Consultant Asset Allocation (12/31/08) • Value Enhancement Fund II & IV • Meketa Investment Group Absolute Return / Hedge Funds Custodian • Aetos Capital Balanced Portfolio • State Street • Benchmark Plus Institutional Partners Fund • Blackstone Alternative Asset Management, L.P. / BPIF Non-Taxable L.P. (“Partners NT”)

2008 Return -27.28% 2008 Target 8.25% 2008 Market Value $535.3 M 2004-2008 (Annualized) 2.52% 1985-2008 (Annualized) 8.60%

PERAC ANNUAL REPORT 2008 | 119 23 Midstate Drive, Suite 106 Board Members Board Administrator Worcester Auburn, MA 01501 Kevin Blanchette (Chairperson), Kevin Blanchette Regional Phone 508-832-6314 Carol A. Baron, Michael J. Donoghue, Board Meeting Fax 508-832-6318 Eugene Durgin, Pauline Lajoie Usually last Tuesday of each month

Funded Ratio (1987-2008) ACTUARIAL • Funded Ratio 56.3% • Date of Last Valuation 01/07 • Actuary Buck Consultants • Assumed Rate of Return 8.50% • Funding Schedule 4.5% Increasing • Year Fully Funded 2028 • Unfunded Liability $303.0 M • Total Pension Appropriation (Fiscal 2009) $26.4 M

Active Retired • Number of Members 6,610 2,887 • Total Payroll/Benefit $211.5 M $37.5 M • Average Salary/Benefit $32,000 $13,000 Investment Return (2004-2008, 5 Year and 24 Year Averages) • Average Age NA 74 • Average Service NA NA

INVESTMENT

Real Estate • AEW Partners V, L.P. • Intercontinental Real Estate Investment Fund III, LLC • SSgA Tuckerman / Property Redevelopment & Renovation Fund • TA Realty Associates Fund VII Alternative Investments • Ascent Venture Partners II & IV, L.P. • North American Strategic Partners 2006, L.P. Asset Growth (1999-2008) (Market Value in Millions) • Zero Stage Capital V, VI & VII, L.P. General Allocation • PRIT

Asset Allocation (12/31/08)

2008 Return -26.65% 2008 Target 8.50% 2008 Market Value $301.4 M 2004-2008 (Annualized) .83% 1985-2008 (Annualized) 7.87%

120 | PERAC ANNUAL REPORT 2008 Board Members 84 State Street Board Administrator Treasurer Timothy P. Cahill (Chairperson), PRIM Suite 250 Michael Travaglini Alexander E. Aikens, III, C. LaRoy Brantley, Boston, MA 02109 Board Meeting Robert Brousseau, Paul Cesan, John Dow, Phone 617-946-8401 Every other month, day and date varies Leslie A. Kirwan, Theresa McGoldrick, Esq., Fax 617-946-8475 Paul E. Shanley

INVESTMENT Investment Return (2004-2008, 5 Year and 24 Year Averages) Domestic Equity Managers • Barclays Global Investors • Austin Capital Management • Blackrock Financial Management, Inc. • AXA Rosenberg Investment Management • Community Capital Management • Blackstone Alternative Asset Management, LP • Loomis, Sayles & Company, L.P. • Crestline Investors • Pacific Investment Management Company • Earnest Partners High Yield Bond Managers • EIM Management (USA) Inc. • Eaton Vance Institutional Funds • Grosvenor Capital Management, LP • Fidelity Management Trust Company • INTECH • ING Investment Management • Numeric Investors, LP • Loomis, Sayles & Company, L.P. • Pacific Investment Management Company • Pacific Investment Management Company • Putnam Advisory Company, LLC • Shenkman Capital Management • Russell Investment Group • State Street Global Advisors Emerging Markets Debt Managers Asset Growth (1999-2008) (Market Value in Billions) • Strategic Investment Group • Ashmore Investment Management, Ltd. • Grantham, Mayo, Van Otterloo & Co. LLC International Equity Managers • Pacific Investment Management Company • Alliance Bernstein • AXA Rosenberg Investment Management Distressed Debt Managers • Ballie Gifford • Angelo, Gordon & Co. • Marathon Asset Management, Ltd. • Avenue Capital Group • Mondrian Investment • Oaktree Capital Management • Pyramis Global Advisors • Providence Equity Partners • State Street Global Advisors • Summit Partners • TCW Asset Management Fixed Income Managers • Wayzata Investment Partners • Access Capital Strategies, LLC • AFL-CIO Housing Investment Trust

Asset Allocation (12/31/08)

. .

PERAC ANNUAL REPORT 2008 | 121 PRIM (cont.)

INVESTMENT (CONT.)

Emerging Markets Equity Managers • Commonwealth Capital Ventures • Spark Capital • Emerging Markets Management • CVC Capital • Spectrum Equity Partners • Grantham, Mayo, Van Otterloo & Co. LLC • Cypress Merchant Banking • Summit Ventures • T. Rowe Price • DLJ Merchant Banking • TA Associates/Advent • El Dorado Ventures • TCV Natural Resources • Equitable Capital Management • Technology Crossover Ventures • Jennison Associates • Essex Woodlands • Tenaska Power Fund • T. Rowe Price • Exponent Partners • Texas Pacific Group Real Estate Managers • First Reserve Corporation • Thoma Bravo • Canyon Johnson • Flagship Ventures • Thomas H. Lee Equity Partners • European Investors, Inc. • Freeman Spogli Equity Partners • Torquest • Intercontinental • Genstar Capital Partners • Towerbrook • INVESCO Realty Advisors • Gores Group • Trident Capital • J.P. Morgan Investment Management • GTCR Golder, Rauner • Union Square • LaSalle Investment Management • Hellman & Friedman Capital Partners • VantagePoint Partners • New Boston • H.I.G. Capital • Venture Capital Fund of New England • RREEF America, LLC • Highland Capital Partners • Vestar Capital Partners • TA Associates Realty • Insight Venture Partners • Vista Equity Partners • Urdang Advisors • InterWest Partners • Welsh Carson Anderson & Stowe • Wellington Management Company, LLP • J.H. Whitney • Weston Presidio Capital • Joseph Littlejohn & Levy • Whitney & Company Timber Managers • Kelso & Company • William Blair Mezzanine Capital Fund • Forest Investment Associates • Kohlberg Kravis Roberts and Co. • Willis Stein Alternative Investments Managers • Landmark Equity Partners Absolute Return Managers • 1818 Fund • Lexington Partners • Arden Asset Management • Advent International • Madison Dearborn Capital Partners • Ivy Asset Management Corporation • Alchemy Partners • M/C Venture Partners • K2 Advisors • Alta Communications • Menlo Ventures • Pacific Alternative Asset Management Company • American Securities • Montagu Private Equity • Rock Creek Group • APAX Partners & Co. • Montreux Equity Partners • Apollo Management Co. • Narragansett Capital, Inc. Consultants • Austin Ventures • Nash & Sells • Callan Associates • Bain Capital • Nautic Partners • Cliffwater, LLC • Battery Ventures • New Enterprise Associates • Hamilton Lane • Berkshire Partners, LLC • Nordic Capital Custodian • Blackstone Group • Odyssey Investment Partners • BNY Mellon • Boston Ventures • Olympus Growth Fund • Bridgepoint • One Liberty Fund • Brown Brothers Harriman & Co. • Onex Partners • Candover • PAI Partners • Capital Resource Lenders • Permira Europe • Carlyle Partners • Polaris Venture Partners • Castile Ventures • Providence Equity Partners • Centerbridge Capital Partners • Quad-C Management, Inc. • Charles River Ventures • Quantum Energy Partners • Charlesbank Capital Partners • Richland Ventures • Charterhouse Capital Partners • SCP Vitalife • Chequers Capital • Sherbrooke Capital • Chisholm Partners • Sovereign Capital Limited • Code Hennessey & Simmons 2008 Return -29.50% 2008 Target 8.39% 2008 Market Value $37.8 B 2004-2008 (Annualized) 3.50% 1985-2008 (Annualized) 9.41%

122 | PERAC ANNUAL REPORT 2008 Disability Retirement ApprovalsDisability Nurse CME Reviews Accidental Death ApprovalsPhysician CME/RTS Reviews Disability Retirement Statistics Disability Panel Requests as of 12/31/08

Retirement Boards with 40–399 Active Members Adams Retirement Board 0 1 0 1 0 Amesbury Retirement Board 2 1 0 0 0 Athol Retirement Board 0 2 0 6 1 Blue Hills Regional School Retirement Board 0 0 0 0 0 Clinton Retirement Board 1 0 0 1 0 Easthampton Retirement Board 0 1 0 0 0 Fairhaven Retirement Board 3 3 0 2 0 Gardner Retirement Board 0 0 0 0 0 Greater Lawrence Sanitary District Retirement Board 0 0 0 1 0 Greenfield Retirement Board 0 0 0 2 0 Hull Retirement Board 0 0 0 0 0 Marblehead Retirement Board 0 1 1 2 0 Mass Housing Finance Agency Retirement Board 0 0 0 0 0 Maynard Retirement Board 0 0 0 1 0 Milton Retirement Board 1 0 1 1 0 Minuteman Regional School District Retirement Board 0 0 0 0 0 Montague Retirement Board 2 1 0 2 0 Newburyport Retirement Board 2 2 0 2 0 North Adams Retirement Board 2 3 0 4 0 Northbridge Retirement Board 0 0 0 2 0 Reading Retirement Board 0 0 0 1 0 Saugus Retirement Board 1 2 0 0 0 Southbridge Retirement Board 0 1 0 2 0 Stoneham Retirement Board 0 1 0 1 0 Swampscott Retirement Board 1 0 0 0 0 Webster Retirement Board 0 0 0 0 0 Winchester Retirement Board 1 2 0 3 0 Winthrop Retirement Board 0 0 1 0 0

Retirement Boards with 400–599 Active Members Belmont Retirement Board 3 2 0 1 0 Concord Retirement Board 0 1 0 4 1 Danvers Retirement Board 0 1 0 4 1 Dedham Retirement Board 0 1 0 3 0 Gloucester Retirement Board 0 3 0 2 0 Hingham Retirement Board 1 0 2 0 0 Lexington Retirement Board 0 0 0 4 0 Melrose Retirement Board 4 4 1 2 0 Milford Retirement Board 1 1 0 4 1 Natick Retirement Board 2 1 0 1 0

PERAC ANNUAL REPORT 2008 | 123 Disability Retirement Approvals Disability Nurse CME Reviews Disability Retirement Statistics Accidental Death ApprovalsPhysician CME/RTS Reviews as of 12/31/08 Disability Panel Requests

North Attleboro Retirement Board 1 4 0 0 0 Norwood Retirement Board 1 0 0 3 0 Revere Retirement Board 8 4 2 5 2 Wakefield Retirement Board 3 2 0 2 0 Watertown Retirement Board 5 1 0 1 0 West Springfield Retirement Board 1 1 0 1 0 Woburn Retirement Board 0 1 1 2 0

Retirement Boards with 600-899 Active Members Andover Retirement Board 0 0 0 1 0 Arlington Retirement Board 4 4 2 7 0 Attleboro Retirement Board 1 1 1 4 0 Beverly Retirement Board 2 3 0 3 0 Braintree Retirement Board 3 2 0 7 0 Chelsea Retirement Board 6 7 0 2 0 Dukes County Contributory Retirement System 2 2 0 2 0 Everett Retirement Board 5 3 0 4 2 Falmouth Retirement Board 2 2 0 1 1 Fitchburg Retirement Board 2 7 0 3 0 Leominster Retirement Board 3 3 0 3 0 Malden Retirement Board 7 3 0 5 0 Marlborough Retirement Board 2 0 0 2 2 Medford Retirement Board 3 5 0 4 1 Methuen Retirement Board 1 2 0 5 0 Needham Retirement Board 0 0 0 2 0 Northampton Retirement Board 1 1 0 2 1 Peabody Retirement Board 3 4 1 2 0 Salem Retirement Board 5 5 0 3 0 Shrewsbury Retirement Board 0 0 0 1 0 Waltham Retirement Board 5 3 1 6 1 Wellesley Retirement Board 1 1 0 3 0 Weymouth Retirement Board 2 2 0 11 0

Retirement Boards with 900-2,399 Active Members Berkshire County Retirement Board 0 0 0 6 0 Brockton Retirement Board 8 7 0 12 0 Brookline Retirement Board 12 9 0 16 0 Chicopee Retirement Board 3 6 1 7 0 Fall River Retirement Board 12 9 1 20 0 Framingham Retirement Board 6 1 0 4 2 Franklin Regional Retirement Board 2 2 0 3 2

124 | PERAC ANNUAL REPORT 2008 Disability Retirement ApprovalsDisability Nurse CME Reviews Disability Retirement Statistics Accidental Death ApprovalsPhysician CME/RTS Reviews as of 12/31/08 Disability Panel Requests

Haverhill Retirement Board 6 5 2 4 0 Holyoke Retirement Board 6 7 1 8 0 Lawrence Retirement Board 1 1 2 10 0 Lowell Retirement Board 8 7 3 17 1 Lynn Retirement Board 9 9 0 23 4 Massport Authority Retirement Board 2 2 0 6 0 Mass Turnpike Authority Retirement Board 3 4 0 5 1 Mass Water Resources Authority Retirement Board 13 12 0 4 0 New Bedford Retirement Board 12 11 5 41 0 Newton Retirement Board 3 6 5 4 0 Pittsfield Retirement Board 1 0 1 4 0 Plymouth Retirement Board 2 4 0 4 0 Quincy Retirement Board 5 5 3 10 0 Somerville Retirement Board 9 7 1 8 0 Taunton Retirement Board 2 5 0 10 0 Westfield Retirement Board 0 0 0 4 0

Retirement Boards with 2,400-10,000 Active Members Barnstable County Board of Retirement 17 13 1 42 2 Bristol County Board of Retirement 21 19 2 28 0 Cambridge Retirement Board 14 16 5 11 0 Essex Regional Retirement Board 10 5 1 10 0 Hampden County Regional Retirement Board 7 7 1 10 0 Hampshire County Retirement Board 3 2 0 4 2 Middlesex County Retirement Board 18 20 2 32 1 Norfolk County Retirement Board 12 9 1 20 4 Plymouth County Retirement Board 16 20 2 30 2 Springfield Retirement Board 20 20 0 41 4 Worcester Retirement Board 20 23 4 29 1 Worcester Regional Retirement Board 14 14 1 12 2

Retirement Boards with 20,500-90,000 Active Members Boston Retirement Board 199 109 12 442 2 State Retirement Board 179 178 18 391 22 State Teachers Retirement Board 36 28 0 23 2 Total All Retirement Boards 817 710 89 1,511 68

Restoration to Service Statistics (Provided for those boards where a disability retiree has returned to work.)

• Plymouth 1

PERAC ANNUAL REPORT 2008 | 125 126 | PERAC ANNUAL REPORT 2008 PERAC STAFF

Administration Audit Fraud Prevention • Joseph E. Connarton • Harry Chadwick • Sandra King Executive Director Chief Auditor Fraud Prevention Manager • Joseph I. Martin • James Tivnan • Ellen Aucoin Deputy Executive Director Deputy Chief Auditor Administrative Assistant • Frank E. Valeri • Robert Madison Deputy Director Western Chief Auditor Information Systems • Michael J. DeVito • Richard Ackerson • Paul Laliberte Director of Strategic Planning, Auditor Director of Information Systems Management & Public Affairs • Martin Feeney • Anthony Tse • Caroline J. Carcia Auditor Project Manager Director of Administrative Services • Scott Henderson • K-Lone Steele MISSION STATEMENT • Kim Boisvert Auditor Senior Systems Engineer Senior Executive Assistant • Carol Niemira • Irina Boukina • Virginia Barrows Auditor Senior Programmer/Analyst The Public Employee Retirement Administration Commission (PERAC) was created for and is dedicated to the oversight, Chief Financial Officer • James Ryan • Mark Joseph • Katie Bozzi Auditor Senior Programmer/Analyst Accounts Payable Specialist guidance, monitoring, and regulation of the Massachusetts Public Pension Systems. The professional, prudent, and • John Shea • Joan Arsenault Auditor Investment Administrative Assistant • James Sweeney efficient administration of these systems is the public trust of PERAC and each of the 106 public pension systems for • Tracey Legaski Auditor • Robert Dennis Administrative Assistant Investment Director the mutual benefit of the public employees, public employers, and citizens of Massachusetts. The stewardship of the • Victoria Marcorelle Communications Senior Investment Analyst Actuarial • Sarah Kelly • Veronica Colon Trust Funds for the sole purpose of providing the benefits guaranteed to the public employees qualifying under the • James Lamenzo Communication & Education Director Fund Accountant Actuary • Michael Litvack • Rose Cipriani • John Boorack Webmaster/Graphic Design Specialist Administrative Assistant plans is the fulfillment of the obligation of the people of the Commonwealth to those who have dedicated their Actuarial Associate • Faith Towers • Kaitlyn Carbone Graphic Designer Legal professional careers to the service of the people of the Commonwealth. Actuarial Assistant • Ben Polatin • Sherry Brooks-Ross Communication Specialist • Barbara Phillips Benefit Calculation Specialist General Counsel • Judith Corrigan Disability Deputy General Counsel • Barbara Lagorio • Derek Moitoso Director of Disability Associate General Counsel • Kate Hogan • Susan Childs Manager of Medical Services Executive Assistant • Mary Jane Carritte Clinical Case Manager • Patrice Looby Nurse Case Manager • Doreen Duane Case Manager • Regina Manning Administrative Assistant ANNUAL REPORT 2008 | PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION

ANNUAL REPORT

COMMONWEALTH OF MASSACHUSETTS Commonwealth of Massachusetts Public Employee Retirement Administration Commission Five Middlesex Avenue, Suite 304 | Somerville, MA 02145 Web www.mass.gov/perac Phone 617 666 4446 Fax 617 628 4002 Public Employee Retirement TTY 617 591 8917 Web www.mass.gov/perac Administration Commission 2008