Current Info

PUBLIC EMPLOYEES' RETIREMENT
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, January 21, 2003 and Wednesday, January 22, 2003

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 1:15 p.m., Tuesday, January 21, 2003 in the Las Vegas PERS' Board Room, 5820 South Eastern Avenue, Suite 220, Las Vegas. Members present: Charles Silvestri, Sue DeFrancesco, Mark Balen, Purisimo Hernandez, David Kallas, and Warren Wish. Members absent: Marvin Leavitt.

JANUARY 21, 2003

Chairman Silvestri welcomed new board members Mark Balen and David Kallas to the PERS' Retirement Board.

INVESTMENTS

1. Staff reviewed PERS' securities lending program.

ADMINISTRATION
3. A. Staff reviewed the reorganization of the benefit and membership divisions for the benefit of the new Board members. Staff highlighted the responsibilities of the Employer and Production Services division. Staff announced that Patti Keyes is the director of the division, Brian Snyder is the manager of employer services, and Lynette Jones is the manager of production services.
QUESTIONS AND ANSWERS
RECESS - Chairman Silvestri recessed the meeting at 2:40 p.m.

JANUARY 22, 2003

RETIREMENT BOARD MEETING

The regular monthly meeting of the Public Employees' Retirement Board was called to order at 8:00 a.m., January 22, 2003, in the Las Vegas PERS' Board Room, 5820 South Eastern Avenue, Suite 220, Las Vegas. Members present: Charles Silvestri, Sue DeFrancesco, Mark Balen, Purisimo Hernandez, David Kallas, Marvin Leavitt, and Warren Wish. Members absent: None.

INVESTMENTS

1. Staff presented a portfolio summary report for the PERS', Legislators', and Judicial funds for calendar year 2002.

2. Staff updated the Board on the progress of the active domestic fixed income manager search currently underway.

3. Judi DeVivo of Alliance Capital Management presented an update on the S&P 500 and value equity portfolios for the PERS' fund and the S&P 500 portfolios for the Legislators' and Judicial funds she manages. Judi also discussed the composition of the S&P 500 index.

4. Kurt Zyla of BNY Asset Management reviewed the firm's organization and presented an update on the international equity index portfolio.

5. Greg Curran and Laurie Carroll of Mellon Bond Associates presented an overview of their firm and an update on the domestic fixed income index portfolio.

6. Hank Banach and Bill Kelly of The Bank of New York reviewed the fundamentals of their securities lending program and highlighted performance.

7. There were no recommended changes to the Interim Investment Directives.

BOARD

1. On motion of Sue DeFrancesco, the Board voted unanimously to approve the minutes of the Retirement Board education session and meeting held December 17 and 18, 2002, as submitted.

2. There were no recommended changes to the Retirement Board meeting dates.

ADMINISTRATION

1. On motion of Mark Balen, the Board voted unanimously to:

Approve permanent and total disability retirement for: Alice Ainsworth, Richard Carver, Jeanetta Easterly, Dale Fuller, Annette Herrera, Tami Kelleher, Linda Majewski, Kathy McMillan-Abbott, Sherry Mock, Michelle Murray, Gary Sterrett, David Tobin, and Michael Wood.

Approve reemployment requests by disability recipients: Joan Greenwood, Randy Hodson, and Lawrence McDowell.

2. John Garrett of The Segal Company presented the actuarial valuation for the Judicial Retirement System as of January 1, 2003. On motion of Marvin Leavitt, the Board voted unanimously to accept the actuarial valuation for the Judicial Retirement System as of January 1, 2003.

3. Staff presented the purchase of service table for the Judicial Retirement System as prepared by The Segal Company. On motion of Mark Balen, the Board voted unanimously to accept the purchase of service table for the Judicial Retirement System.

4. John Garrett of The Segal Company reviewed the actuarial cost study estimates for various benefit enhancements for the Public Employees' Retirement System. On motion of Purisimo Hernandez, the Board voted unanimously to accept the benefit cost estimates prepared by The Segal Company for the Public Employees' Retirement System.

5. Staff reviewed the minutes and recommendations from the Police and Firemen's Retirement Fund Advisory Committee meeting held December 11, 2002. On motion of David Kallas, the Board voted unanimously to approve staff and committee recommendations as set forth in the minutes of the December 11, 2002, Police and Firemen's Retirement Fund Advisory Committee meeting, as submitted.

6. There was no report from the Deputy Attorney General.

7. Julius Conigliaro of RPEN stated they would be happy to place an article in one of their upcoming newsletters informing their members of possible Social Security pension offsets.

8. Administrative Report by Staff

Operations Officer:

The Operations Officer introduced Brenda Burt, Manager of the PERS' Las Vegas office. She thanked Brenda and her staff for their hard work put forth in organizing the move to the new office and for making it so inviting. She also recognized Brenda for arranging the successful open house held January 21, 2003.

The Operations Officer informed the Board that staff is diligently working with and counseling our perspective new members to the Judicial Retirement System. Staff is also providing benefit calculations to the PERS' members that are contemplating moving into the new plan.

As approved at the December 2002 meeting, staff has initiated a relationship with Groom Law Group to assist PERS with their Form 6166 issue and obtaining a plan qualification letter from the IRS.

Executive Officer:

The Executive Officer thanked the staff in the Las Vegas Office for the great job they did on setting up and planning the wonderful open house. It was a great success. Staff mentioned that there is a spare office available in the new Las Vegas office to staff and Board members should they require it.

The Executive Officer reviewed the 2003 legislative session BDR's that PERS' is currently tracking.

Vice Chairman DeFrancesco complimented the staff on the new Las Vegas Office and on behalf of the Board thanked them for a job well done at the January 21, 2003 open house. Everything was wonderful!

Warren Wish reviewed Mr. Maynard Yassimer's request for a special benefit option for 40-year employees. The Executive Officer explained that Mr. Yassimer?s request would require a legislative change to the Retirement Act and that it would only benefit a very small number of members. It has been the policy of the Retirement Board to support legislation that would benefit a majority of its members.
Chairman Silvestri requested a status report of the analysis regarding shared commissions. The Investment Officer indicated the Deputy Attorney General's opinion was that the System should continue to adhere to its policy of best execution, leaving the brokerage decision to investment counsel.

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

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 report.

3. Approve final benefit audit reports for April 2001 and May 2001.

4. Approve out-of-state travel request for members of the Board and appropriate staff to attend Callan Associates' Annual Investment Conference January 27-29, 2003 in San Francisco, California.

5. Approve a contract renewal with PricewaterhouseCoopers for the fiscal year 2003 audits of the Public Employees' Retirement System, the Legislators' Retirement System, and the Judicial Retirement System.

6. Approve the name correction for PERS' staff worker's compensation insurance carrier from Insurance Company of the West to Explorer.

7. Retroactively approved the Alamo Sewer and Water General Improvement District's request for membership in PERS, effective January 1, 2003.

8. Approve out-of-state travel for the Investment Officer and the Assistant Investment Officer to conduct on-site visits at Invesco Realty Advisors and WestAM.

9. Retroactively approved Investment Performance Guidelines for Payden & Rygel's temporary fixed income portfolio.

10. Approve the Nevada Tahoe Conservation District's request for an adjustment to their effective date of membership in PERS from July 1, 2002 to February 15, 2003.

APPEALS

1. Staff reported that an affidavit was received by one of DaLonnie Jensen's brothers regarding the account of deceased member Patricia Jensen.

2. Deferred Mr. Parrish's request for continuation of unreduced benefit payments without having to complete payment of service validation agreements until the February 19, 2003 meeting.

DENIALS
REPORTS

The following is the time schedule for the meeting:

The January 22, 2003, Board meeting was called to order at 8:00 a.m. At approximately 9:45 a five-minute break was taken. At 11:50 a.m. the meeting was recessed for lunch and called back to order at 1:50 p.m. On motion of Purisimo Hernandez the meeting closed at 1:52 p.m. for consideration of disability matters and reopened on motion of Purisimo Hernandez at 2:00 p.m. The meeting adjourned at 2:35 p.m.