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Selectmen adopt IPS wording change and give RBAC limited authority to adjust investment mix
Summary
To avoid automated-provider rebalancing issues, the board added the words "at least" before 6.5% in the town's investment policy statement and delegated RBAC authority to adjust the target mix within IPS ranges; both measures passed unanimously to give the town flexibility in market windows.
The Board of Selectmen voted July 6 to amend the town’s pension and OPEB Investment Policy Statement (IPS) wording and to delegate limited authority to the Retirement Benefits Advisory Committee (RBAC).
First, the board approved language to add "at least" before the 6.5% target in the IPS so that 6.5% serves as a floor rather than a hard target. Board members and RBAC representatives explained the change responded to automated rebalancing behavior from large investment providers that had difficulty matching a fixed-point expectation; adding a floor permits the town’s adviser and RBAC to operate without being forced into more conservative allocations by automated systems.
Second, the board voted to allow RBAC to work with the town’s discretionary provider to change the target allocation when needed, so long as any adjustment remains within the IPS’s stated minimum and maximum ranges. Supporters said the delegation preserves oversight (the RBAC includes public members and board representatives) while enabling faster responses when market opportunities appear.
Both measures passed on unanimous voice votes. Selectmen said they will continue to meet quarterly with the investment advisor and review performance and policy language as needed.
