Current Info

Current Info

April 2002 Minutes

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

PUBLIC EMPLOYEES' RETIREMENT BOARD MEETING MINUTES
April 17, 2002
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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 9:00 a.m., April 17, 2002, in the City Council Chambers, 240 Water Street, Henderson. Members present: Charles Silvestri, Marvin Leavitt, Earl Greene, Andy Anderson, Sue DeFrancesco, Purisimo Hernandez, and Warren Wish. Members absent: None.

I. INVESTMENTS

Ted Bradford, Patrice Milton, and Sonja Walker, of Bradford & Marzec presented information regarding their ownership, investment decision process, and substandard performance in their active core domestic fixed income portfolio. On motion of Earl Greene, the Board voted unanimously to continue to monitor this portfolio closely.
Dick Graf and Fred Robertson of Criterion Investment Management presented information regarding substandard performance in their active core domestic fixed income portfolio. On motion of Andy Anderson, the Board voted unanimously to terminate the System's assignment of active core bonds with Criterion Investment Management as soon as possible.
Paul Cheves, Jean Clark, and Joe Patterson of The Patterson Capital Corporation presented information regarding substandard performance in their active core domestic fixed income portfolio. On motion of Purisimo Hernandez, the Board voted 4-Ayes and 3-Nos to terminate the System's relationship with The Patterson Capital Corporation as soon as possible. Andy Anderson, Earl Greene, and Marvin Leavitt voted no.
Staff reviewed the active core domestic bond manager search criteria. On motion of Earl Greene, the Board voted unanimously to approve the active core U.S. bond manager search criteria as submitted.
On motion of Marvin Leavitt, the Board voted unanimously to establish temporary bond accounts with Lincoln Capital Management, Payden & Rygel, and State Street Research & Management, as appropriate.
Ruthann Moomy, Callan Associates and Staff reviewed the manager search selection process and gave an overview of the finalist candidates' organizations, performance and their investment process.
1. On motion of Andy Anderson, the Board voted unanimously to permanently assign a Lehman Aggregate Index mandate to Criterion Investment Management.
2. On motion of Marvin Leavitt, the Board voted unanimously to invite Barclays Global Investors, Mellon Bond, and Vanguard to the Board's May 15th, 2002 meeting for interviews in conjunction with a Lehman Aggregate Index mandate.
Staff presented the amended modifications to the Interim Investment Directives for the PERS' fund. On motion of Earl Greene, the Board voted unanimously to approve the amended Interim Investment Directives, PERS' fund.

II. BOARD

On motion of Marvin Leavitt, the Board voted unanimously to approve the minutes of the Retirement Board Education Session and meeting held on February 12th and 13th, 2002, as submitted.
On motion of Sue DeFrancesco, the Board voted unanimously to approve the minutes of the Retirement Board meeting held March 18th, 2002, as submitted.
Staff will provide a Board Education Session on Tuesday, May 14th, prior to the Wednesday, May 15th, 2002 board meeting. Sue DeFrancesco mentioned she would be unable to attend the education session.

III. ACCOUNTING

Staff reviewed the fiscal year 2002/2003 summary budget packets which included defining the categories and how the categories flow together to create the final budget.

IV. ADMINISTRATION

For the record, Earl Greene declared he knows Curt Wilson but did not feel that was a conflict. On motion of Andy Anderson, the Board voted unanimously to:
1. Approve total and permanent disability retirement for: LaVonne Brubeck, Ernarea Gash, Peter Jensen, Franklin Kerr, Charles Lee, Charles Michael, Wesley Neighbors, Marilyn Ramacher, Kenneth Spigner and Rosa Stallcop.
2. Approve reemployment requests by disability recipients: Don Kindell, Curt Wilson, and Charles Wiseman.
Staff presented a retiree profile report that included the importance of post-retirement increases as they relate to maintaining benefit purchasing power after retirement compared to the calculated rate of inflation.
John Garrett, The Segal Company presented an overview of DROP and PLOP programs currently in place in other states. His discussion included the purpose of this type of program and examples of each program utilizing PERS' current benefit provisions. Staff will present a final report to the Board in July 2002 regarding lump sum optional programs.
On motion of Andy Anderson, the Board voted 6-Ayes and 1-excused, to reject all aspects of the NDOT settlement proposal presented in the matter of PERS vs. NDOT. Purisimo Hernandez was excused from this vote.
The Deputy Attorney General had nothing to report at this time.
Individual statements and/or requests by the members, retired employees and/or the public:
1. Dick Graf, Criterion Investment Management, thanked the Board and appreciated the Board's confidence in moving them from a temporary Lehman Aggregate Index mandate to a permanent mandate.
2. Ted Bradford, Bradford & Marzec, thanked the Board for their vote of confidence in maintaining their current relationship.
3. Joe Patterson, The Patterson Capital Corporation, thanked the Board for their opportunity to work with Nevada PERS and appreciated the tough decision the Board had to make in terminating The Patterson Capital Corporation.
4. Mr. Lambert, Counsel for NDOT, requested the Board take the legislative changes included in the NDOT settlement proposal, under their consideration.
5. A Las Vegas retiree requested that the Board take into account the increases in utilities, healthcare, medical prescriptions, and other areas that affect retirees as the Board reviews retiree profiles.
6. Marty Bibb, RPEN, applauded the Board's efforts in reviewing the demographics and how they affect retirees. He stated he is pleased to be part of the System and thanked the staff for their diligent work on behalf of RPEN members. Mr. Bibb introduced Bob Johnston, State President of RPEN, who was seated in the audience.
Administrative Report by Staff:
Operations Officer:
1. Staff informed the Board that a second meeting on the Police/Fire eligibility study was held on Tuesday, April 16th in Las Vegas with approximately eight attendees. A meeting with the Director of Police Officers Standards Training (P.O.S.T.), has taken place. One of the recommendations from that meeting was to include annual physical exams in the criteria. Currently we do include physical exams in the criteria but they are not required on an annual basis. Staff is hoping to have a final report to the Board this summer.
Executive Officer:
1. Staff reported that a second DROP meeting took place on Tuesday, April 16th in Las Vegas with approximately twenty attendees. John Garrett, The Segal Company, presented information on DROP and PLOP programs currently in place in other states. His discussion included the purpose of these types of programs and examples of each program utilizing PERS' current benefit provisions.
Chairman Silvestri commented that this was a difficult meeting and complimented the staff and his colleagues on the difficult business decisions they made today.
Andy Anderson requested that Mrs. Paulette O. Reinhardt's staff denial be heard as an official appeal on the next agenda that is most convenient for Mrs. Reinhardt.

V. LEGISLATION

Staff presented and reviewed the seven items below to be included in PERS' 2003 Housekeeping Bill draft:
1. Change the term "fireman" to "firefighter" throughout NRS 286 for purposes of defining positions eligible for early retirement; this terminology change provides for a gender neutral definition similar to the term "police officer" currently used throughout the Retirement Act.
2. Add language at NRS 286.160(4) to require 4-year college or university degree for the assistant investment officer, administrative analyst, and manager of information systems.
3. Delete language "whose occupant is thereby" at NRS 286.300(4) which is confusing and meaningless.
4. Delete language "a nonprofit corporation to which a public hospital has been conveyed or leased pursuant to NRS 450.500" within the public employer definition found at NRS 286.070(1). This language conflicts with the requirements of NRS 286.486 prohibiting dual coverage in PERS and the Social Security System. Employees of non-profit corporations are required to participate in Social Security.
5. Clarify language under NRS 286.523(1) that in order for a retiree to be eligible to fill a critical labor shortage position he or she must be receiving a benefit that is unreduced for age. Replace the words "unmodified benefit" to "unreduced benefit."
6. Change language at NRS 286.523 to restrict exemption from PERS' reemployment restrictions for critical labor shortage positions to 2-years for retirees hired for these positions beginning July 1, 2003.
7. Add a statutory contribution rate change mechanism for the Judicial Retirement System. This change will mirror the rate smoothing mechanism currently in place for the Public Employees' Retirement System.
On motion of Marvin Leavitt, the Board voted unanimously to direct staff to submit a housekeeping bill draft request to the Department of Administration by May 1, 2002, to include the seven legislative changes presented, as submitted.
VI. RATIFICATION AGENDA
On motion of Sue DeFrancesco, the Board voted unanimously to:
1. Approve the Administrative Fund disbursements.
2. Approve personnel action taken since the last meeting.
3. Approve amendments to the Bank of New York and Wells Fargo Bank contracts for additional commercial banking services.
4. Approve out-of-state travel for staff to attend the Association of Public Pension Fund Auditors (APPFA) Professional Development Conference scheduled for May 5th through May 8th, 2002 in Williamsburg, Virginia.
5. Approve retroactive approval of an Independent Contract with Advanced Total Imaging, Inc. (ATI) of Milpitas, California for software upgrades to our Optika imaging platform at a cost not to exceed $28,000.00 effective April 1, 2002.
6. Approve out-of-state travel for the Network Specialist II to attend a network security seminar and product demonstration in Sacramento, California scheduled for April 23, 2002.
7. Approve the Independent Contract with FlatRateInfo.com at a cost of $1,400 per year for access to their website for the purpose of searching for families of deceased members of PERS to determine whether benefits are due.
VII. DENIALS

VIII. REPORTS
The following is the time schedule for the meeting:
April 17, 2002, the meeting was called to order at 9:00 a.m. At 10:50 a.m. a break was taken for approximately 10 minutes. The meeting was recessed at 11:55 p.m. until 1:15 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 at 1:27 p.m. and opened at 1:32 p.m. by motion of Warren Wish. On motion of Marvin Leavitt the meeting was closed at 2:37 p.m. for litigation discussions in the matter of PERS vs. NDOT by authority of NRS 286.150(2) and opened by motion of Andy Anderson. The meeting adjourned at 3:50 p.m.