PUBLIC EMPLOYEES' RETIREMENT BOARD
MEETING MINUTES FOR
Wednesday, November 16, 2005
The agenda for this meeting was mailed to every public employer, the news media, and other groups and individuals as requested.
The Board meeting of the Public Employees' Retirement Board was called to order by Board Chairman Mark Balen at 8:00 a.m., November 16, 2005, in the PERS' Board Room, 5820 S. Eastern Avenue, Suite 220, Las Vegas. Members present: Mark Balen, Sue DeFrancesco, Purisimo Hernandez, Charles Silvestri, George Stevens, and Warren Wish. Members absent: David Kallas.
For the record, Susan DeFrancesco stated she is aware of Amy Ashmore and Glenna Loar-Nielsen's situations. On motion of Purisimo Hernandez, the Board voted unanimously of those present to:
Approve permanent and total disability retirement for: Amy Ashmore, Alice Baker, Randall Bolton, Phillis Boone, Manuel Bustos, Janice Damman, James Elsea, Kenneth Gregg, Christine Holder, Cynthia Keith, Linda Liles, Glenna Loar-Nielsen, Barry Lovgren, Peggy Pickern, Diana Perry, Diana Peters, Nancy Riley, Kendall Preas, Rosemary Seals, Jana Shiroky, Connie Smith, Karyn Werner, and Patricia Wheeler.
Approve reemployment requests by disability recipients: Stephan Burke, Katherine Gilbert, Christine Matich, James McConnell, Tammy Noble, Randy Paar, Janet Smith, Richard Thatcher, and Robert Wright.
Edward Dove and Gerald Levy of Julius Baer presented a non-U.S. active core bond performance review for their PERS' fund portfolio.
Ruthann Moomy of Callan Associates and Staff presented a quarterly performance review for the PERS', Legislators', and Judicial funds for the period ending September 30, 2005.
Staff reviewed the recommended changes to the Interim Investment Directives for the PERS' fund. On motion of Charles Silvestri, the Board voted unanimously of those present to approve the Interim Investment Directives for the PERS' fund as submitted.
Staff highlighted the eight finalists for the value equity manager search. Staff recommends the Board interview three firms. On motion of Charles Silvestri, the Board voted unanimously of those present to invite Cooke & Bieler, Delaware Associates, and T. Rowe Price to the December 14, 2005 Retirement Board meeting to interview for award of a U.S. value equity mandate for the PERS' fund.
Staff has reviewed the alternative investment reporting guidelines related to oversight of the alternative investment allocation in conjunction with Callan's review and recommendations. Staff is recommending several modifications to the guidelines for clarification purposes. On motion of Warren Wish, the Board voted unanimously of those present, to approve the Alternative Investment Reporting Guidelines, PERS' fund, as submitted.
Staff received six responses to PERS' request for a 2nd Opinion Review of the System's investment programs; the PERS', Legislators', and Judicial funds. After reviewing the proposals, staff recommends the Board select Independent Fiduciary Services (IFS) based on their understanding of the scope of the assignment, qualifications of the team, experience in conducting similar reviews, and price. On motion of Warren Wish, the Retirement Board voted unanimously of those present to authorize staff to retain Independent Fiduciary Services for the purpose of conducting a 2nd Opinion Review of the System's investment programs for the PERS', Legislators', and Judicial funds per Board policy.
On motion of Susan DeFrancesco, the Board voted unanimously of those present to approve the minutes of the Retirement Board's education session and meeting held October 18 and 19, 2005, as submitted.
There were no changes to the Retirement Board meeting dates.
Staff presented proposed Retirement Board education session and meeting dates for July 2006 through December 2006. On motion of Charles Silvestri, the Board voted unanimously of those present to approve the proposed Retirement board education session and meeting dates for July 2006 through December 2006, as submitted.
There were no changes to the Retirement Board education curriculum calendar.
Staff presented the proposed Retirement Board Education Curriculum Calendar for 2006. On motion of Charles Silvestri, the Retirement Board voted unanimously of those present to adopt the proposed Board education curriculum for calendar year 2006, as submitted.
Brad Ramirez and Leslie Thompson of The Segal Company and staff reviewed the fiscal year 2005 actuarial valuation report. Staff reminded the Board that the 2005 actuarial valuation is a non-rate setting year for PERS' contribution rates. On motion of Susan DeFrancesco, the Board voted unanimously of those present to accept the Fiscal Year 2005 Actuarial Valuation Report as prepared by The Segal Company.
Staff presented the proposed Independent Contract with Covansys, Inc. for support of the technology replacement project (C*A*R*S*O*N). This relationship was anticipated and budgeted for in the current biennium budget. On motion of Susan DeFrancesco, the Board voted unanimously of those present to retroactively approve the Contract of Services of Independent Contractor with Covansys, Inc., of Columbus, Ohio at a cost not to exceed $108,480.00 effective November 1, 2005.
Staff reviewed the committee and staff recommendations from the Police and Firefighter's Retirement Fund Advisory Committee meeting of October 20, 2005. On motion of Purisimo Hernandez, the Retirement Board voted unanimously of those present to approve the Committee and Staff recommendations as set forth in the minutes of the October 20, 2005, Police and Firefighter's Retirement Fund Advisory Committee meeting as submitted.
Approve the Administrative Fund disbursements.
Approve all personnel action since the last report.
Retroactively approve out-of-state travel for Board member Susan DeFrancesco to visit Payden & Rygel in Los Angeles, California on October 28, 2005, at her own expense.
Retroactively approve out-of-state travel for the Internal Audit Division staff to attend the Association of Public Pension Fund Auditors' (APPFA) Conference in Nashville, Tennessee, November 6-9, 2005.
Approve an independent contract with the Nevada State Printing Office to print the Comprehensive Annual Financial Report (CAFR) for fiscal year 2005 for an amount not to exceed $4,000.00.
Retroactively approve Amendments to the Investment Performance Guidelines for Alliance Capital Management - Value, Bank of New York Asset Management, Blackrock Realty, and Invesco Realty Advisors.
Approve the Annual Brokerage Report.
Approve the Final Benefit Audit for October 2004.
Approve the Final Benefit Audit for November 2004.
Approve the Benefit Payment Audit Report for the quarter ending September 30, 2005.
Approve the Independent Contract with Intraforms, Inc., to provide printing and mailing services for several image forms for calendar year 2006.
There were no individual statements and/or requests by the members, retired employees and/or the public.
The Deputy Attorney General had nothing to report.
Administrative report by Staff:
The Executive Officer thanked the Board members for attending the 2nd annual liaison officer conference held November 15th at the Golden Nugget, Las Vegas. She also thanked all the staff that worked on the conference and that gave presentations; they all did a fabulous job. The Golden Nugget also did a great job for us.
The Executive Officer announced that the annual Retirement Board Christmas dinner will be held on December 13th at the Carson Station Grill and Rotisserie.
The Executive Officer mentioned that the NCTR annual conference for 2006 has been relocated from Hawaii to Austin, Texas.
The Executive Officer commented that PERS has received approximately sixteen certifications from employers that do not match the payroll reports we have received. Patti Keyes, Director of Employer and Production Services Division, will be working with those employers.
Questions and/or comments by members of the Retirement Board.
Mr. Wish asked staff if a chart could be developed on overtime usage. Staff is currently reviewing the overtime information to redesign the report to the Board which could possibly include charts.
Mr. Wish also thanked the staff for the excellent job they did on the presentations at the Liaison Conference and mentioned Sonya Hellwinkel in particular. He also mentioned that he was impressed by the expertise of the presenters.
Chairman Balen thanked the staff and presenters of the Liaison Conference for the fabulous job they did in putting the conference together and all the presentations; they did a great job.
On motion of George Stevens, the Board voted unanimously of those present to:
The following is the time schedule for the meeting:
On November 16, 2005, the Board meeting was called to order at 8:00 a.m. Two breaks were taken at 9:35 and 11:00 a.m. for approximately ten minutes each. The meeting was adjourned at 12:15 p.m.