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

PUBLIC EMPLOYEES' RETIREMENT BOARD EDUCATION SESSION and REGULAR MONTHLY BOARD MEETING MINUTES
Tuesday, May 14, 2002 and Wednesday, May 15, 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 education session of the Public Employees' Retirement Board was called to order by Board Chairman Charles Silvestri at 3:05 p.m., May 14, 2002 in the PERS' Conference Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Earl Greene, Warren Wish, Andy Anderson, and Purisimo Hernandez.

I. INVESTMENTS

1. Staff reviewed the mechanics of bonds and the key decisions associated with fixed income management.

II. ADMINISTRATION

1. Staff presented the administrative budget summary for fiscal year 2002 and explained the enhancement and maintenance categories. Staff also discussed and reviewed the spreadsheets that contain the detail and justification for the enhancements to the biennial base budget. Staff explained the process of building the biennial budget and the timeline.

III. QUESTIONS AND ANSWERS

IV. RECESS

Chairman Silvestri recessed the meeting at 5:05 p.m.

The regular monthly meeting of the Public Employees' Retirement Board was called to order at 8:05 a.m., May 15, 2002, in the PERS Conference Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Earl Greene, Andy Anderson, Sue DeFrancesco, Purisimo Hernandez, Warren Wish and Marvin Leavitt via telephone conference. Members absent none.

I. INVESTMENTS

1. The Retirement Board heard presentations from Barclays Global Investors, Mellon Bond Associates, LLP and Vanguard Group on their Lehman Aggregate Index products. On motion of Andy Anderson, the Board voted unanimously to retain Mellon Bond Associates, LLP to manage Lehman Aggregate Index funds for the Public Employees' Retirement System as soon as possible.



2. Callan Associates and Staff presented the quarterly performance review for the PERS', Legislators' and Judicial funds.



3. Staff highlighted the recommended changes 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

1. On motion of Earl Greene, the Board voted unanimously of those present, to approve the minutes of the Retirement Board meeting and the Closed Litigation Session held April 17th, 2002, as submitted. Marvin Leavitt was not present for this vote.
   
   
2. On motion of Andy Anderson, the Board voted unanimously to change the June and July meeting dates to Friday, June 21st, 2002 and Tuesday, July 16th, 2002.

III. ADMINISTRATION

1. For the record, Earl Greene declared he knows George Conrad but did not feel that was a conflict. On motion of Sue DeFrancesco, the Board voted unanimously to:
   
   
   1. Approve total and permanent disability retirement for: Sheila Bogoger, Michael Bird, Sandra Cavanagh, George Conrad, Ann English, Keith Flory, Margaret Gallardo, Vicki Granata, Albert Heisser, Robert Kountz, Dana Linehan, Thomas Mastronardo, Alan Reinhardt, Delton Sanders, Lola Shaw, Melinda Stratton, and Renee Zahra.
      
      
   2. Approve reemployment requests by disability recipients: Susan Chandler, Tamia DeLuna, Charles Gibbs, Lawrence McDowell, and Noreen Tabb-Martin.
   
   
   
2. Staff reviewed the minutes and recommendations of the Police and Firemen's Retirement Fund Advisory Committee meeting held April 18, 2002. On motion of Andy Anderson the Board voted unanimously to approve the minutes and the following recommendations of the Police and Firemen's Retirement Fund Advisory Committee meeting held April 18, 2002:
   
   
   1. Approved promotional coverage for the Compliance Enforcement Investigator position for the Secretary of State.
      
      
   2. Approved coverage for the Company Officer/Fire Fighter EMT Intermediate for Douglas County.
      
      
   3. Approved promotional coverage for the City Attorney's Investigator for the City of Las Vegas.
      
      
   4. Approved the title change for Douglas County from Paramedic-Fire Fighter/Captain to Paramedic Fire-Fighter/Shift Captain.
      
      
3. Staff presented charts prepared by The Segal Company, depicting the post-retirement increase formulas for a number of states including Nevada, and how well they kept up with inflation during post-retirement years. Staff then compared these charts with similar charts prepared in 1996 by The Segal Company during PERS "Benefit Adequacy and Competitiveness Study". Staff noted with the 1997 legislative enhancements that created the current COLA structure, Nevada PERS' ranking was greatly improved. All the information contained in this retiree profile report and previous reports will be compiled and presented to the Board at their June 2002 meeting to consider any possible legislative action.
   
   
4. The Deputy Attorney General had nothing to report.
   
   
5. Mr. Gary Clifton requested the Board consider allowing himself and his wife to revert back to a disability retirement from their current regular retirement status because of tax implications that they did not understand at the time of their conversion to regular service retirement.
   
   
6. Administrative Report by Staff:

   Executive Officer:
   
   

   1. The executive staff gave a presentation at the District Judges' Association conference in Reno at Harrah's earlier this month. They included an update regarding the Judicial investment portfolio and discussed the judges' benefits and choices available under the new Judicial Retirement System effective January 1, 2003. Staff is drafting a letter to the Deputy Attorney General to request legal interpretation of the new statutes regarding some questions presented to them at the meeting.
      
      
   2. Staff discussed an article in the current CPRS newsletter regarding Social Security pension offsets.
      
      
   3. Staff expressed PERS' condolences in the passing of former Board member Steve Cozine. PERS' appreciates the 12-year commitment and accomplishments Steve helped us achieve through his leadership and participation on the Retirement Board. Steve will be missed.
      
      

   Operations Officer:
   
   

   1. The Board received a copy of the spring issue of the Retirement News newsletter that is currently at the printer. Two minor changes to the newsletter were recommended and will be communicated to the printer.
      
      
   2. Staff informed the Board that PERS has received the GFOA Award for Excellence for our Comprehensive Accounting and Financial Report for fiscal year 2001.
      
      
   3. Staff mentioned PERS' communication initiative has begun with the revamping of all publications completed and educational programs for members and employers being presented throughout the State. Currently, approximately 70 programs have been given at different locations. An article discussing this initiative is included in the spring newsletter.
      
      
   4. The final lease for the new office space in Las Vegas has been delivered to the Deputy Attorney General. Most likely our office space build out will not be completed in time for our July meeting, so we will determine an alternate meeting location.
      
      
7. Chairman Silvestri complimented staff on the Retirement News newsletter saying how professional it looked. Mr. Silvestri suggested possibly adding a medical article created by Dr. Nickles in future publications.

   Earl Greene thanked the staff for the timely and informative education session they received on May 14th, 2002.

   Warren Wish requested that Mr. Clifton's staff denial be placed on a future Retirement Board agenda to be heard as an official appeal. Mr. Wish also mentioned that he has some information related to Social Security Pension offsets that he will share with the executive officer.

   Andy Anderson requested that Mr. Lockwood's staff denial be placed on a future Retirement Board agenda to be heard as an official appeal.

IV. LEGISLATION

1. There were no legislative matters that developed after publication of the agenda requiring action.

V. RATIFICATION AGENDA

On motion of Earl Greene the Board voted unanimously to approve the Ratification Agenda as follows:

1. Approve Administrative Fund disbursements.
2. Approve personnel action taken since the last meeting.
3. Approved retroactive approval of Criterion Investment Management's fee exhibits for the PERS', Legislators' and Judicial portfolios effective April 17, 2002.
4. Approved retroactive approval of Investment Performance Guidelines and Amended Temporary Fee Agreements with Lincoln, Payden & Rygel, and State Street Research and Management effective April 17, 2002.
5. Approved out-of-state travel for the Investment Officer to participate as a panelist at the Alaska Permanent Fund's investment seminar in Seattle, Washington on May 23, 2002.
6. Approved out-of-state travel for the Assistant Investment Officer and the Administrative Analyst to attend a performance measurement meeting at Callan's San Francisco office on Wednesday, June 5, 2002.
7. Approved a Phase-In Retirement Agreement between Janice Painter and the University of Nevda, Reno.

V. DENIALS

VIII. REPORTS

The following is the time schedule for the meeting:

May 14, 2002, the education session was called to order at 3:05 p.m. and recessed by Chairman Silvestri at 5:05 p.m. The May 15, 2002 meeting was called to order at 8:05 a.m. At 9:35 a.m. a break was taken for approximately 8 minutes. The meeting was recessed at 11:50 a.m. until 1:10 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 1:13 p.m. and opened at 1:37 p.m. by motion of Andy Anderson. The meeting adjourned at 2:45 p.m.