These minutes are a draft subject to approval by the Retirement Board at their next regular meeting.

PUBLIC EMPLOYEES' RETIREMENT BOARD MEETING MINUTES
December 12, 2001
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The agenda for this meeting was mailed to every public employer, the news media, and other groups and individuals as requested.

The regular monthly meeting of the Public Employees' Retirement Board was called to order at 8:07 a.m., December 12, 2001, in the PERS' Conference Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Marvin Leavitt, Earl Greene, Andy Anderson, Sue DeFrancesco, Purisimo Hernandez, and Warren Wish. Members absent: None.

I. INVESTMENTS

1. Hank Banach and Calvin Holmquist, Bank of New York, explained the securities lending process and presented an update on the PERS' securities lending portfolio.
2. Seth Lynn and Bob Windsor, Axe-Houghton Associates, discussed the status of PERS' international equity portfolio and the specifics of the offer from Bank of New York to purchase Axe's depositary reciepts product.
   
   
3. Alain Cubeles and Lee Wanie, Barclay's Global Investors, provided an overview of their organization, an update on equity portfolios for the PERS', Legislators' and Judicial funds and compared the Dow Jones Industrial Average and the S&P 500 indices.



4. Staff discussed concerns about Allianz's purchase of Dresdner Bank and how that affects Dresdner RCM who manages an active core fixed income portfolio for PERS. Luke Knecht, Dresdner RCM, addressed the Board and thanked them for the opportunity to work with them. On motion of Marvin Leavitt, the Board voted unanimously to authorize staff to provide appropriate written notice to Dresdner RCM, Global Investors that the System is terminating our investment management relationship. On motion of Andy Anderson, the Board voted unanimously to authorize the transfer of Dresdner RCM Global Investors' assets to Criterion Investment Management for management in a Lehman Aggregate index portfolio temporarily until a manager search is completed.



5. On motion of Earl Greene, the Board voted unanimously to approve the Interim Investment Directives, PERS' fund, as submitted.



6. Staff highlighted the proposed modifications to the Investment Objectives and Policies. On motion of Marvin Leavitt, the Board voted unanimously to approvethe Investment Objectives and Policies for the PERS', Legislators' and Judicial funds as submitted.

II. BOARD

1. On motion of Earl Greene, the Board voted unanimously to approve the minutes of the Retirement Board meeting held November 19, 2001 as submitted.



2. On motion of Sue DeFrancesco, the Board voted unanimously to approve the July 2002 through December 2002 meeting dates as amended, to reflect the August meeting date of Tuesday, August 20, 2002.

II. ACCOUNTING

1. Mick Friend, PricewaterhouseCoopers (PWC) reviewed the fiscal year 2001 audited financial statement and management letter prepared by his firm. Ann Schleich, Chief Accountant for PERS, highlighted important numbers from the PERS' and Legislators' financial statements. Ann thanked the Executive Staff, Investment Staff, Accounting Staff and PWC for all their hard work and assistance in completing the fiscal year 2001 financial statements. On motion of Marvin Leavitt, the Board voted unanimously to accept the Fiscal Year 2001 audited financial statements; management letter; and staff responses for the Public Employees' Retirement System and the Legislators' Retirement System.DeFrancesco, the Board voted unanimously to approve the July 2002 through December 2002 meeting dates as amended, to reflect the August meeting date of Tuesday, August 20, 2002.

IV. ADMINISTRATION

1. On motion of Marvin Leavitt, the Board voted unanimously to:
   
   
   1. Approve total and permanent disability requests for: Marshaay Abdulla, Millard Bennett, Hoan Cargill, Girard Hermann, Cheryl Mandell, David Parker, Barbara Sweet, Andrea Tavener, Dawnell Tow and Pamela Woodward.
   
   
   On motion of Purisimo Hernandez, the Board voted unanimously to:
   2. Approve reemployment requests by disability retirement recipients: Ruth Branstetter, Jim Prince, and Charles Reavis.

2. A status report on the C*A*R*S*O*N project was provided in the board packet. Contract closure is continuing and internal control PIR's are progressing.
3. Staff reviewed the Covansys Support Agreement. On motion of Andy Anderson, the Board voted unanimously to approve the proposed support agreement with Covansys, Inc. subject to successful negotiations.


4. Chairman Silvestri opened the hearing on the proposed revisions to PERS' Official Policies dated January 19, 2000 at 1:17 p.m. Staff reviewed the proposed changes and additions to the policies. Chairman Silvestri called for public comment. There was none. On motion of Marvin Leavitt, the Board voted unanimously to approve the proposed additions and revisions to PERS' Official Policies and Procedures dated January 19, 2000, as submitted and in accordance with NRS 286.200.


5. Deputy Attorney General had nothing to report.


6. There were no individual statements and/or requests by the members, retired employees and/or the public.


7. Administrative Report by Staff:

   Operations Officer:
   

   1. Staff reported that since the Board's last meeting the Executive Officer traveled to Las Vegas to view proposed locations for PERS' office. The consensus is that McCarran Corporate is the preferred site. Staff will contact the realty agent to start negotiations on a proposed lease for both the McCarran Corporate Center and Pointe Flamingo to keep the bids competitive. Either location is acceptable.
   
   
   
   2. Staff mentioned the Single Survivor Beneficiary form has been distributed to all employers. We have received some questions from married members on how to complete the form. Staff is fielding the questions and has been providing on site visits to assist employers.
   
   
   
   3. The Indiana Retirement System visited PERS on Thursday, December 6, 2001 to view our computer system.
   
   
   

   Executive Officer:
   

   1. Staff reported that the President's Commission to Strengthen Social Security's recommendations does not include mandatory coverage of public employees.
   
   
   2. Staff mentioned the pre-trial hearing in PERS vs. NDOT has been rescheduled to Friday, December 14, 2001.
   
   
   3. Two newspaper articles were distributed to the Board regarding Assembly Bill 555.
   
   
   4. A memorandum on the first meeting regarding lump sum optional retirement programs was distributed to PERS' employer liaison officers yesterday.
   
   
   5. The NASRA Executive Directors meeting in Washington, D.C. will be in February. The Executive Officer will also attempt to meet with Nevada's congressional leaders and attend the CPRS meeting.
   
   Investment Officer:
   
   
   1. Staff introduced Jenny Boland our new Administrative Analyst.
   
   
8. Chairman Charles Silvestri wished the staff a happy and safe holiday season.

V. RATIFICATION AGENDA

On motion of Earl Greene, the Board voted unanimously to:

1. Approve the Administrative Fund disbursements.
2. Approve personnel action taken since the last report.
3. Approve staff's request for out-of-state travel for appropriate board members and staff to attend the Callan Investments Institute's 22nd Annual National Conference January 28-30, 2002, in San Francisco.

VII. REPORTS

The following is the time schedule for the meeting:

December 12, 2001, the meeting was called to order at 8:07 a.m. At 9:40 a.m. a break was taken for approximately 10 minutes. The meeting was recessed at 11:45 a.m. until 1:00 p.m. at which time the meeting was called to order. On motion of Earl Greene the meeting was closed for consideration of disability matters and opened at 1:15 p.m. by motion of Andy Anderson. The meeting adjourned at 2:00 p.m.