NORTH ANDOVER — Selectmen were not happy to hear that the Essex Regional Retirement Board saw its investments plunge by 33 percent in 2008 — the worst of 107 retirement systems in Massachusetts.

But unlike other member towns, they aren't ready to tell the retirement board to get out of the investment business quite yet.

Selectmen said they want more information before taking any votes to move their investments into the state system — the Pension Reserves Investment Trust — at a meeting this week.

Towns like Hamilton, Ipswich and Manchester all voted to ask the retirement board to transfer the funds at meetings Monday night.

"We might have had years we did exceedingly well and others didn't," selectmen's Chairman Rosemary Smedile said, agreeing they should look at the retirement system's records and trends.

The Essex Regional Retirement Board oversees the pensions of employees in 19 towns, including Boxford, Middleton and Topsfield. North Andover is its largest member.

Town Manager Mark Rees said if something is not done by fiscal year 2012 when the next actuarial assessment takes place, North Andover "can expect a 44 percent increase ... over $1.1 million."

The state's system lost 29.6 percent in 2008 compared with the 33 percent drop for the Essex Regional system.

Essex Regional Retirement Board Chief Operating Officer Lilli Gilligan recently sent an e-mail asking member communities to decide by June 29, whether they want the board to transfer its investments to the state investment trust, which manages pension investments of state employees.

North Andover selectmen next meet on June 29.

In the meantime, Rees has joined a fact-finding committee of town leaders who are looking into issues like moving investments, what the associated cost would be, and other managerial changes to the board.

"We need to be caught up to speed," Rees said. "There have been a lot of comments we read in the newspapers. We want to write down all our questions and talk with the executive director."

Rees said they are not only looking at whether to transfer funds to the PRIT fund, but whether the retirement board itself should be reconfigured to include a selectman or town manager in the mix.

"Just to give it a new set of eyes," Rees said.

There also has been talk of disbanding the retirement board or not participating as well, he said.

North Andover fire Chief William Martineau, one of five members of the retirement board, said he would work with the town manager to help him get any information he needs.

Selectmen said they are more disturbed at recent decisions the retirement board has made than its recent performance.

Retirement Board employees were given 5.8 percent raises this year, while most member communities have frozen town employees' wages. Selectmen also were upset to hear that retirement board Director Timothy Bassett is a registered lobbyist who was paid $14,400 last year.

The retirement board recently pushed to reclassify public works employees, allowing them to retire earlier — at age 55 — and costing towns more money.

It also approved a subtle language change allowing emergency dispatchers to retire five years early, at age 60. And the board did not bother getting any input from town leaders.

"It aggravates me. It's almost like taxation without representation," Selectman Rick Nardella said.

Nardella also wanted to know whether North Andover was in a good position as the biggest member of the Essex Regional Retirement Board.

"Does it benefit us, the town of North Andover, to be the biggest fish in the pond?" he asked.

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