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PUBLIC EMPLOYEES' RETIREMENT
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, December 17, 2002 and Wednesday, December 18, 2002
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 3:12 p.m.,
Tuesday, December 17, 2002 in the PERS' Board Room, 693 West Nye
Lane, Carson City. Members present: Charles Silvestri, Warren Wish,
Sue DeFrancesco and Purisimo Hernandez. Members absent:
Marvin Leavitt and Earl Greene.
DECEMBER 17, 2002
EDUCATION SESSION
INVESTMENTS
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Staff reviewed the performance and status of investment
managers after they had been terminated by PERS, and discussed
timing of the end of the relationships.
ADMINISTRATION
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Staff reviewed the actuarial valuation process and
the observations from the fiscal year 2002 actuarial valuation for PERS.
QUESTIONS AND ANSWERS
RECESS
- Chairman Silvestri recessed
the meeting at 4:50 p.m.
DECEMBER 18, 2002
RETIREMENT BOARD MEETING
The regular monthly meeting of the Public Employees' Retirement
Board was called to order at 8:00 a.m., December 18, 2002, in the
PERS Board Room, 693 West Nye Lane, Carson City. Members present:
Charles Silvestri, Earl Greene, Sue DeFrancesco, Purisimo Hernandez,
Warren Wish and Marvin Leavitt. Members absent: None.
INVESTMENTS
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Richard Harris, John O'Callahan and George Stairs,
of Putnam Investments presented an update on their
active core international equity portfolio.
Andrew Gabel, Barclays Global Investors, presented
an update on their S&P 500 index portfolio for the PERS?
fund and their MS EAFE index portfolios for the Legislators?
and Judicial Funds.
Ruthann Moomy of Callan and staff presented
background information regarding Bradford & Marzec?s
substandard performance. Staff recommended termination
of the relationship, establishment of a temporary account with
Payden & Rygel, and the initiation of a manager search for a
replacement. Ted Bradford, Sonja Walker and Jeff Brothers
from Bradford & Marzec addressed the Board and identified
reasons for their active domestic fixed income portfolio
underperformance. After discussion, on motion of Earl
Greene, the Board voted unanimously to:
Terminate the System?s relationship with
Bradford & Marzec, Inc. as soon as possible.
Establish a temporary bond account with
Payden & Rygel as soon as possible.
Authorize staff to commence an active core
U.S. Fixed income manager search as soon
as possible.
Staff addressed the Board regarding the manager
screening process and search criteria associated with
active core domestic bond managers. On motion of Sue
DeFrancesco, the Board voted unanimously to approve
the active core U.S. bond manager search criteria
as presented by staff.
Ruthann Moomy, Callan Associates, presented
quarterly performance detail on the PERS?,
Legislators? and Judicial funds.
Staff reviewed the Interim Investment Directives
for the PERS? fund. On motion of Purisimo Hernandez,
the Board voted unanimously to approve the Interim
Investment Directives for the PERS? fund.
BOARD
On motion of Purisimo Hernandez, the Board voted
unanimously to approve the minutes of the regular
Retirement Board meeting held November 18, 2002, as submitted.
It was suggested that the January 2003 Board meeting be
changed to January 22, 2003 in the Las Vegas office to
coincide with the new PERS' Las Vegas office open house.
An educational session will precede the meeting on January 21,
2003 from 1:00 p.m. to 3:00 p.m. with the open house
following immediately. On motion of Warren Wish, the
Board voted unanimously to change the meeting date as indicated.
ACCOUNTING
Staff presented the FY02 audited financial statements and management letter (with staff responses) for the Public Employees' Retirement System, the Legislators' Retirement System, and the Judicial Retirement System. On motion of Marvin Leavitt, the Board voted unanimously to accept the Fiscal Year 2002 audited financial statements; management letter; and staff responses for the Public Employees' Retirement System, the Legislators' Retirement System and the Judicial Retirement System.
ADMINISTRATION
On motion of Earl Greene, the Board voted unanimously to:
Approve permanent and total disability retirement for: Sharon Barstys, Evelyn Calvin, Eletta Cash, Judith Dearborne, Flora E. Gibson, Daniel Graham, Joseph Hutton, David McNeill, Kenneth Neat, Stephanie Nys, Carol O?Brien, Harold Rozinski, DeAnn Siri, Celeste Smith, Michael Smith, Karen Terry, Robert Walters, Gayle Wilson, and Robert Wright.
Approve reemployment requests for Lona Domenici-Reese, Kathy Gaudlin, Pauline Marchese, and Andrea Tavener.
Deny reemployment request of disability retirement recipient Jeremy Hampton.
Ed Heywood and Ian Hill, Bailey Charter Schools, addressed the Board regarding contributions and penalties owed to PERS. On motion of Warren Wish the Board voted unanimously to approve a quarterly payment plan for Bailey Charter Elementary School based on all contributions and penalties due.
On motion of Purisimo Hernandez the Board voted unanimously to authorize staff to proceed with the notice requirements for adopting the proposed policy modifications in accordance with NRS 286.200.
On motion of Sue Defrancesco, the Board voted unanimously to authorize staff to retain the Groom Law Group for review of the IRS Form 6166 issue and IRS determination letter, in an amount not to exceed $50,000, unless further approved by the Board.
Staff gave an update on the Police Officer and Firemen Early Retirement Study. On motion of Warren Wish, the Board voted unanimously to accept staff?s report.
The Deputy Attorney General reported that the lawsuit regarding a parole and probation officer has been dismissed.
Administrative report by Staff.
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Administrative Report by Staff
Executive Officer:
Reported on the Interim Retirement Committee meeting held on November 20, 2002 in Carson City. Items of discussion included contribution rate increases, investment status, update on the Judicial Retirement System, Drop Study update, and retiree reemployment - Assembly Bill 555.
The Executive Officer also reported that David Kallas, President of the Police Protective Association is the new Board member, replacing Andy Anderson.
I. Member Leavitt commented that staff needs to be consistent with information given to members regarding Social Security offsets.
Warren Wish requested that Paul Parrish's request to waive the balance due on two validations of service for police/fire credit agreements be placed on an upcoming agenda.
LEGISLATION
There were no legislative items that developed after publication of the agenda.
RATIFICATION AGENDA
On motion of Earl Greene, the Board voted unanimously to:
Approve Administrative Fund disbursements. Approve personnel action taken since the last report. Approve out of state travel for investment staff to visit State Street Research and Management?s offices in Boston, MA as appropriate. Approve independent contracts with Intraforms, Inc., for the printing and mailing of variable image forms. Approve penalty waiver request for the City of Fallon. Approve penalty waiver request for the Las Vegas Housing Authority. Approve the Insurance Company of the West to provide worker?s compensation insurance to Nevada PERS beginning January 1, 2003.
APPEALS
Staff reported that an affidavit was received by one of DaLonnie Jensen?s brothers regarding the account of deceased member Patricia Jensen.
DENIALS
REPORTS
The following is the time schedule for the meeting:
The December 18, 2002, Board meeting was called to order at 8:00 a.m. At approximately 9:10 a five-minute break was taken. At approximately 10:50 a ten-minute break was taken. At approximately 11:20 a ten-minute break was taken. At 11:55 a.m. the meeting was recessed for lunch and called back to order at 12:15 p.m. On motion of Sue Defrancesco the meeting closed at 1:00 p.m. for consideration of disability matters and reopened on motion of Sue DeFrancesco at 1:10 p.m. The meeting adjourned at 1:45 p.m.
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