PUBLIC EMPLOYEES' RETIREMENT BOARD
MEETING MINUTES
Thursday, September 5, 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 Board meeting of the Public Employees' Retirement Board was called to order by Board Chairman Charles Silvestri at 9:00 a.m., September 5, 2002 in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Sue DeFrancesco, Andy Anderson, Earl Greene, Purisimo Hernandez, Marvin Leavitt, and Warren Wish. Members absent: None.

I. INVESTMENTS

1. Jack Koltes and Liz Smith of Alliance Capital presented an update on their active growth equity portfolio, investment philosophy and a market outlook for the future.



2. Dan Boone and Jerry DeVore of Atlanta Capital presented an update on their active growth equity portfolio, investment philosophy and a market outlook for the future.



3. Staff and Ruthann Moomy of Callan discussed the proposed amendments to the Investment Objectives and Policies for the PERS' fund. On motion of Marvin Leavitt, the Board voted unanimously to approve the Investment Objectives and Policies for the PERS' fund, as submitted.



4. Staff presented the Fiscal Year 2003 Investment Plans for the PERS' fund. On motion of Andy Anderson, the Board voted unanimously to approve the Fiscal Year 2003 Investment Plans, as submitted.



5. Staff reviewed the Fiscal Year 2003 Investment Calendar.



6. There were no recommended changes to the Interim Investment Directives for the PERS, Legislators' or Judicial funds.

II. BOARD

1. On motion of Marvin Leavitt, the Board voted unanimously to approve the minutes of the Retirement Board meeting held August 13-14, 2002, as submitted.
   
   
2. There were no recommended changes to the Retirement Board meeting dates.

III. ADMINISTRATION

1. On motion of Purisimo Hernandez, the Board voted unanimously to:
   
   
   1. Approve permanent and total disability retirement for: Daniel Bauer, Gerald Bauserman, Thomas Benjamin, William Cato, Richard Chaponis, Robert Crawford, Stacy Faulkner, William Hawkins, Steven Jensen, Bobbie Marshall, Charles Patrick, Nancy Quinn, Charles Williams, and George Wilkins.
      
      
   2. Approve reemployment requests for disability recipients: Vicki Dunagan, Michael Henderson, Kathy Sadovich, and Vanessa Wedlow.
      
      
2. Staff presented the proposed revision to PERS' Official Policy 9.1, which included new language regarding the completion and filing of Single Survivor Beneficiary forms with PERS. On motion of Andy Anderson, the Board voted unanimously to authorize staff to proceed with the notice requirements for adopting the proposed policy modification to PERS' Official Policy 9.1 in accordance with NRS 286.200, with some consideration to adding language regarding acceptance of the forms with a valid postmark before the member's death.
   
   
3. The Deputy Attorney General had nothing to report.
   
   
4. There were no individual statements and/or requests by the members, retired employees and/or the public offered.
   
   
5. Administrative Report by Staff:

   Operations Officer:
   
   

   1. The Las Vegas office construction is underway but will not be ready for our October 16, 2002 meeting. The October meeting will be held at the Henderson City Council Chambers. We will schedule an open house date after construction is completed.
      
      

   Executive Officer:
   
   

   1. The Executive Officer thanked Jenny Boland, Karen Kimball, Ken Lambert, and Laura Wallace for their work in organizing the 17th Annual Investment Planning Seminar. It was a great success.
      
      
   On behalf of PERS' staff, the Executive Officer thanked Andy Anderson for his eight years of service on the Retirement Board and said he would be missed by all.
   
   
6. Questions and/or comments by members of the Retirement Board.
   
   
   1. Warren Wish asked what the outcome was when the Wyatt Study of Retiree Healthcare was completed in 1990. Staff explained that no legislation was enacted upon completion of the study.
      
      
   2. Charles Silvestri and Earl Greene also thanked and complimented staff on a job well done with the successful completion of the 17th Annual Investment Planning Seminar at Caesar's Tahoe.
      
      
   3. Marvin Leavitt asked if staff would look into possibly lengthening the seminar to a day and a half and maybe include some more presentations by investment managers.
      
      
   4. Marvin Leavitt requested Atlanta Capital reproduce and compare some of their expectation charts with what actually happens in the next twelve months the next time they report to the Retirement Board.
      
      
   5. Andy Anderson mentioned that the September 2002 meeting is his last as a Retirement Board member. He thanked Dana Bilyeu, George Pyne, and Laura Wallace for all their help during his past eight years on the Retirement Board.
      
      
   6. Charles Silvestri thanked Andy Anderson for his time on the Retirement Board and said Andy would be missed. He also mentioned he appreciated Andy's friendship personally and as a Retirement Board member.
      
      
   7. Charles Silvestri and Earl Greene requested more information and time be spent on PERS' asset allocation and assumption discussions in the future.
      
      
   8. Charles Silvestri asked that Mr. William Scoble's staff denial be placed on a future Retirement Board meeting to be heard as an official appeal.
      
      

IV. LEGISLATION

1. There were no legislative items that developed after the publication of the agenda.
   
   

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 report.
3. Approved amended Performance Expectations with Callan Associates, Inc.
4. Approved out-of-state travel for appropriate Board members and staff to attend the National Conference on Teacher Retirement (NCTR) conference in Anchorage, Alaska on October 5-10, 2002.
5. Approved retroactive approval of High Desert Montessori School's request for membership in PERS, effective August 26, 2002.
6. Approved retroactive approval of Academy for Career Education's request for membership in PERS, effective August 15, 2002.

VI. APPEALS

Staff presented background information on Mr. John Lockwood's request to be designated as Single Survivor Beneficiary to receive benefits from the PERS' account of his deceased mother Lavella Lockwood. Mr. Lockwood's appeal was continued from the August Board meeting to allow Mr. Lockwood time to present evidence that the signature on the completed form was indeed his mothers. Mr. Lockwood provided notarized copies of letters from Mt. Grant General Hospital (his mother's employer), and his two siblings, Yolanda Lockwood, and Lew Lockwood Jr., that all stated the signature on the form was indeed Lavella Lockwoods. On motion of Warren Wish, the Board voted unanimously to grant Mr. John Lockwood's appeal that he be designated as Lavella Lockwood's single survivor beneficiary and receive benefits from her PERS' account according to NRS 286.6767.

VII. DENIALS

VIII. REPORTS

The following is the time schedule for the meeting:

On September 4, 2002, the 17th Annual Investment Planning Seminar at Caesar's Tahoe, was called to order at 9:00 a.m. by Chairman Charles Silvestri and adjourned at 2:12 p.m. The September 5, 2002, Board meeting was called to order at 9:00 a.m. and by motion of Earl Greene was closed for consideration of disability retirements. At 9:05 a.m. by motion of Andy Anderson, the meeting was reopened. At 12:12 p.m. the meeting was recessed for lunch and reconvened at 1:00 p.m. The meeting adjourned at 1:12 p.m.