Current Info

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

PUBLIC EMPLOYEES' RETIREMENT
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, August 17 and Wednesday, August 18, 2004

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 Mark Balen at 1:05 p.m., August 17, 2004, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Sue DeFrancesco, Purisimo Hernandez, Charles Silvestri, and Warren Wish. George Stevens arrived at 2:45 p.m. Members absent: David Kallas.

1. EDUCATION SESSION

1. Investments - Staff discussed asset allocation fundamentals in preparation for the annual Investment Planning Seminar scheduled for September 15, 2004.

2. Administration - Staff reviewed limited and absolute vesting for pension benefits and how they relate to PERS.

2. BOARD MEETING

1. On motion of Charles Silvestri the Board voted unanimously of those present to go into a closed executive session to consider the character and professional competency of PERS' Executive Officer pursuant to NRS 241.030(1) at 2:45 p.m. On motion of Charles Silvestri the Board voted unanimously of those present to return to open session at 3:30 p.m.

2. The Retirement Board evaluated and rated PERS' Executive Officer in seven categories for fiscal year 2004. Chairman Balen and Vice-Chair DeFrancesco will present the results to PERS' Executive Officer. On motion of Charles Silvestri, the Board voted unanimously of those present, to approve the executive officer performance evaluation for fiscal year 2004, as compiled.

3. QUESTION AND ANSWERS
4. PUBLIC COMMENT
5. RECESS
Chairman Balen recessed the meeting at 4:05 p.m.

The Board meeting of the Public Employees' Retirement Board was called to order by Board Chairman Mark Balen at 8:00 a.m., August 18, 2004, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Sue DeFrancesco, Purisimo Hernandez, David Kallas, Charles Silvestri, George Stevens, and Warren Wish. Members absent: None.

DISABILITIES

1. On motion of David Kallas, the Board voted unanimously to:

1. Approve permanent and total disability retirement for: Artis Andrews, Mary Bertelson, Danny Booton, Robert Brown, Roxane Clark-Murphy, William Crooker, Doyle Danner, Joyce Dixon, Carol Gubler, Paula Hamilton, Donna Hess, Jerri Kerksieck, Patrick Lowry, Robert Mailer, Christine Matich, Don McFarlin, Linda Mikelich, Dirk Miller, JoAnn Narciso, Jerilyn Penna, Judy Sagapoutele, Ila Jean Schaefer, Cindy Thomas, Laurie Thomas, Robert Thompson, Vernell Toldson, Cynthia Tuttle, Nancy Walsh, Pamela Waltz, and Patricia Walker.

2. Approve reemployment requests by disability recipients: Gloria Dondero-Pedro, Leonard Hayes, David McNeill, William Smith, Ingrid Watts, and Emily Young.

INVESTMENTS

1. Ruthann Moomy of Callan Associates and Staff presented the 2004 Fiscal Year End performance review for the PERS', Legislators', and Judicial funds.

2. Rich Gilmartin and John Graham of Rogge Global Partners reviewed their organization, addressed their investment process, and discussed the performance of their international bond portfolio.

3. Hank Banach of the Bank of New York provided educational information regarding securities lending and presented an update regarding PERS' securities lending program.

4. Ruthann Moomy of Callan Associates and staff discussed investment management firms being considered for the U.S. growth stock manager mandate. On motion of Sue DeFrancesco the Board voted 6-yeas and 1-no, to invite Capital Guardian, Goldman Sachs, INTECH, and Voyaguer to the October 21, 2004 Retirement Board meeting to interview for award of a U.S. growth equity mandate for the PERS' fund. Warren Wish voted no.

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

BOARD

1. Staff presented the proposed modifications to the Retirement Board Duties, Policies, and Procedures for Section V, Funding. The following language replaces item (b) from Section V, Funding:

2. The Board shall work with the Legislature to maintain an adequate contribution rate to provide for funding the unfunded liability of the System using a year-by-year closed amortization approach and the level percentage of payroll contribution method. Each amortization period will be set at 30-years beginning with the 2004 valuation.

• Benefit improvements may be considered when the actuarially determined employer pay contribution rate would drop by at least 1% and the employee/employer pay rate would drop by at least .5% from the statutory rate and remain sufficient to meet the requirements of this funding policy.

• Benefit improvement costs may equal up to one-quarter of the margin between the statutory rate and the actuarially determined contribution rate.

After discussion, on motion of David Kallas the Board voted unanimously to adopt the modified funding policy set forth in Section V.b. of the Retirement Board's Duties, Policies, and Procedures, as submitted.

2. On motion of David Kallas the Board voted unanimously to approve the minutes of the Retirement Board education session and meeting held July 20 and 21, 2004, as submitted.

3. There were no changes to the Retirement Board meeting dates.

4. On motion of Charles Silvestri, the Board voted unanimously to reschedule the November education topics to a later date and replace that session with a seminar from Cortex.

ACCOUNTING

1. Staff reviewed the process for calculating the administrative fees for the Public Employees' Retirement System. On motion of Purisimo Hernandez the Board voted unanimously to approve a per capita fee of $3.37 per month for each regular member and benefit recipient and $3.57 per month for each Police/Fire member and benefit recipient, retroactive to July 1, 2004.

2. Staff reviewed the process for calculating the administrative fees for the Legislators' Retirement System. On motion of George Stevens the Board voted unanimously to approve a per capita administrative fee of $36.47 per month for fiscal year 2005 for the Legislators' Retirement System.

3. Staff reviewed the process for calculating the administrative fees for the Judicial Retirement System. On motion of Sue DeFrancesco the Board voted unanimously to approve a per capita administrative fee of $57.53 per month for fiscal year 2005 for the Judicial Retirement System.

ADMINISTRATION

1. Staff presented the 2004 Strategic Plan revision. On motion of Warren Wish the Board voted unanimously to approve PERS' 2004 Strategic Plan revision, as amended.

2. Staff reviewed the minutes and recommendations of the Police and Firefighters' Retirement Fund Advisory Committee meeting held July 22, 2004. On motion of David Kallas the Board voted unanimously to approve staff and Committee recommendations as set forth in the minutes of the July 22, 2004, Police and Firefighter's Retirement Fund Advisory Committee meeting, as submitted.

3. Staff reviewed the Contract for Services of Independent Contractor for C*A*R*S*O*N support with Covansys, Inc. On motion of Charles Silvestri the Board voted unanimously to approve a Contract of Services of Independent Contractor with Convansys, Inc. of Columbus, Ohio at a cost not to exceed $406,080.00, effective September 1, 2004.

LEGISLATION

1. There were no new Bill Draft Requests for the 2005 Legislative Session affecting PERS since last month's report. Staff will continue to monitor the list and update the Board as necessary. Actuarial cost studies being prepared by The Segal Company will be available to the Board at the October 2004 meeting.

2. There were no legislative matters that developed after publication of the agenda that required action.

RATIFICATION AGENDA

On motion of David Kallas, the Board voted to approve the Ratification Agenda as follows:

1. Approve the Administrative Fund disbursements.

2. Approve the personnel action taken since the last report.

3. Retroactively approve the contract assignment with Julius Baer Investments Ltd.

4. Approve out-of-state travel for investment staff to conduct an on-site visit at Atlanta Capital's offices in Atlanta, Georgia.

In a separate motion by Sue DeFrancesco the Board voted 6-yeas and 1-abstention to approve item E. George Stevens abstained from this vote.

5. Approve Clark County's request for a penalty waiver in the amount of $1,331.89.

In a separate motion by Purisimo Hernandez, the Board voted 5-yeas and 2-abstentions to approve item F. David Kallas and George Stevens abstained from this vote.

6. Approve the Las Vegas Metropolitan Police Department's request for a penalty waiver in the amount of $1,153.54.

DENIALS
REPORTS
COMMENTS

1. Holly Zimmerman, Director of Member and Retiree Services, recognized LaDonna Bennett for her 30-years of continued service to PERS and thanked her for her continued loyalty.

   LaDonna Bennett thanked the Board for the lovely flowers and gift she received honoring her 30 years of service to PERS.

2. The Deputy Attorney General had nothing to report.

3. Administrative Report by Staff.

Executive Officer:

1. The executive officer attended the NASRA annual conference in Asheville, North Carolina and thanked the Board for the opportunity. It was a tremendous conference and the educational sessions were very informative.

2. The executive officer mentioned that she will attend the NCTR conference in Portland, Oregon on October 10-14, 2004 and if any Board members were interested in attending they need to let us know.

3. The executive officer will present a seminar to RPEN on Thursday. There will be approximately 400 attendees.

4. The executive officer presented a 30-year award to PERS' staff member, LaDonna Bennett. Dana shared compliments received on behalf of LaDonna during her career from PERS' members. Dana also thanked LaDonna for her continued service and dedication to PERS.

Operations Officer:

1. The operations officer reported that PERS' disaster recovery site is currently replicating all of PERS' data. Once that is complete information technology staff will test the components.

2. The operations officer mentioned that the new phone system allows her to monitor how many calls are on hold, how long they have been waiting, the number of abandoned calls, and how long they waited before the call was abandoned through a ticker tape placed in her office. This information will be used to help plan PERS' workforce. Staff is also hoping to link the Las Vegas office to the system.

4. Questions and/or comments by members of the Retirement Board.

   Mark Balen

   1. On behalf of the Board, Chairman Balen thanked and commended LaDonna Bennett on her distinguished 30-year career at PERS.

   Warren Wish

   1. Mr. Wish thanked the Board for the opportunity to attend the NASRA conference in Asheville, North Carolina.

The following is the time schedule for the meeting:

On August 17, 2004, the Education Session and Board meeting was called to order at 1:05 p.m. by Chairman Mark Balen and recessed at 4:05 p.m. One break was taken at 3:25 p.m. for approximately 5 minutes. The August 18, 2004, Board meeting was called to order at 8:00 a.m. On motion of Sue DeFrancesco, the meeting was closed for consideration of disability retirements at 8:00 a.m. and opened at 8:05 a.m. on motion of Charles Silvestri. Two breaks were taken at 9:25 and 10:40 for approximately 10 minutes each. The meeting was recessed at 11:40 a.m. for lunch and reconvened at 1:00 p.m. Two breaks were taken at 1:45 p.m. and 2:05 p.m. for approximately 5 minutes each. The meeting was adjourned at 2:20 p.m.