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PUBLIC EMPLOYEES' RETIREMENT BOARD
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, January 18 and Wednesday, January 19, 2005
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 member Charles Silvestri at
3:40 p.m., January 18, 2005, in the PERS' Board Room, 5820 South Eastern, Suite 220, Las Vegas. Members present: Purisimo
Hernandez, Charles Silvestri, Warren Wish and David Kallas. Members absent: Mark Balen, George Stevens, and Sue DeFrancesco.
JANUARY 18, 2005
BOARD EDUCATION SESSION
INVESTMENTS
Staff discussed the impact of asset allocation and investment manager selection on investment performance in the
PERS' fund.
- ADMINISTRATION
Staff reviewed PERS' legislative process prior to session, during the session and during the interim between the
sessions.
- QUESTION AND ANSWERS
- PUBLIC COMMENT
- RECESS
Board member Silvestri recessed the meeting at 4:05 p.m.
JANUARY 19, 2005
BOARD MEETING
The Board meeting of the Public Employees' Retirement Board was called to order by Board Chairman Mark Balen at 8:00 a.m.,
January 19, 2005, in the PERS' Board Room, 5820 South Eastern, Suite 220, Las Vegas. Members present: Mark Balen, Sue
DeFrancesco, Purisimo Hernandez, David Kallas, Charles Silvestri, George Stevens, and Warren Wish. Members absent: None.
DISABILITIES
On motion of Purisimo Hernandez, the Board voted unanimously to:
Approve permanent and total disability retirement for: Arlene Anacabe, Mark Brazill, Andrew Coleman,
Samuel Davis, Carol Hahn, Billy Honeycutt, Georgia Mathews, Jon McCreary, Jacque Micheli, Susan Olds,
Deborah Romero-Woodall, Carmela Seehr, William Shea, Gregory Stanphill, Shirley Stevenson, and Johnetta
Watkins.
In a separate motion by Warren Wish, the Board voted 6-yeas and 1-abstention to approve permanent and total
disability retirement for David McArthur. David Kallas abstained from this vote.
On motion of Warren Wish, the Board voted unanimously to approve reemployment requests by disability
recipients: Judith Foster, Debbie Peters, Barbara Phillips, Patrick Tanner, Vanessa Wedlow, and Petra
Wilson.
INVESTMENTS
Brian Matthews of Payden & Rygel, presented U.S. and non-U.S. bond portfolio updates for the PERS', Legislators',
and Judicial funds. Mr. Matthews also presented an educational program on Social Security.
Joe Carieri and Donald Plotsky of Western Asset Management presented an organizational overview and an active
U.S. bond portfolio update for the PERS' fund. They also provided Western's economic outlook for the coming year.
Staff presented an update on the status of the Request for Proposal for custody and commercial banking services
for the PERS', Legislators', and Judicial funds. Currently, 5-custody and 3-commercial banking proposals are
being evaluated by staff and Callan. Staff will present a recommendation at the February meeting.
Staff presented a portfolio summary report through December 31, 2004, for the PERS', Legislators', and Judicial
funds.
David Kallas requested that the definition and discussion of directed brokerage/commission recapture programs be
added to the Education calendar and the board agenda for February 2005.
Staff presented the recommended changes to the Interim Investment Directives for the PERS', Legislators', and
Judicial funds. On motion of Warren Wish, the Board voted unanimously to:
Approve the Interim investment Directives for the PERS' fund, as submitted.
Approve the Interim Investment Directives for the Legislators' fund, as submitted.
Approve the Interim Investment Directives for the Judicial fund, as submitted.
BOARD
On motion of Charles Silvestri, the Board voted unanimously to approve the minutes of the Retirement Board
education session and meeting held December 14 and 15, 2004, as submitted.
On motion of David Kallas, the Board voted unanimously to approve the Retirement Board meeting dates for
July through December 2005, as submitted.
On motion of Purisimo Hernandez, the Board voted unanimously to change the February education curriculum topic
to include definition and discussion of directed brokerage/commission recapture programs.
ADMINISTRATION
Staff presented an update on PERS' administrative budget process for the upcoming biennium.
LEGISLATION
Staff reviewed the Bill Draft Request List for the 2005 Legislative Session and the BDR's PERS' staff is currently
tracking.
There were no legislative matters that developed after publication of the agenda.
RATIFICATION AGENDA
Approved the Administrative Fund disbursements.
Approved all personnel action since the last report.
Retroactively approved out-of-state travel for the Board Chairman, Mark Balen, to attend the Opal Financial Public
Funds Conference in Phoenix, Arizona, January 8-11, 2005, at no cost to the system.
Approved an accounts receivable write-off for overpaid student survivor benefits to James Wirey in the amount of
$2,172.06.
Approved the contract renewal with PricewaterhouseCoopers to perform financial audits of the Public Employees'
Retirement System, Legislators' Retirement System, and the Judicial Retirement System for the fiscal year ending
June 30, 2005, for a fee not to exceed $103,400
Approved the Final Benefit Audit Follow Up report for April 2002 through June 2003.
Approved out-of-state travel for the Administrative Analyst to attend the National Association of Investment
Professionals (NASIP) conference in New Orleans, Louisiana, March 8-11, 2005.
On motion of Charles Silvestri, the Board voted unanimously to approve the Ratification Agenda, as submitted.
DENIALS
REPORTS
COMMENTS
There were no individual statements and/or requests by the members, retired employees and/or the public.
Deputy Attorney General had nothing to report.
Administrative Report by Staff:
Executive Officer:
The Executive Officer updated the Board on the business conducted at the Interim Retirement and Benefits
committee meeting held January 13, 2005.
The Executive Officer mentioned that during the Legislative budget hearings she will discuss the contribution
rates effective July 1, 2005 and PERS' funding policy change.
The Executive Officer has scheduled meetings with Keith Munro of the Governor's Office to discuss Governor
Schwartzenegger's defined contribution plan proposed for California.
The Executive Officer has met with Keith Munro and Perry Comeaux to discuss the contribution rates effective
July 1, 2005 and PERS' funding policy change.
The Executive Officer has scheduled a meeting with Andrew List, Executive Director of the Nevada Association
of Counties, to discuss the contribution rates effective July 1, 2005, and PERS' funding policy change.
The Executive Officer will schedule a meeting with Senator Raggio when the legislative session begins to
discuss PERS' funding policy change and the contribution rates effective July 1, 2005.
The Executive Officer reported that Cortex has completed a draft of PERS' governing policies for staff
review. Once reviewed by staff, staff will schedule a meeting with the Retirement Board's subcommittee to
review the policies.
Questions and/or comments by members of the Retirement Board.
Charles Silvestri
Mr. Silvestri asked what out-of-state travel is available for staff. The Executive Officer explained that
each division of PERS has the opportunity to send staff to national conferences each year.
Mr. Silvestri complimented staff on the 2nd quarter returns for fiscal year 2005.
Sue DeFrancesco
Dr. DeFrancesco asked if video teleconferencing is available during the winter months. Staff explained that
there are some opportunities within the Legislative Building, DOT, and WNCC for video teleconferencing.
The following is the time schedule for the meeting:
On January 18, 2005, the Education Session was called to order at 3:40 p.m. by member Charles Silvestri and recessed at
4:05 p.m. The January 19, 2005, Board meeting was called to order at 8:00 a.m. One break was taken at 9:35 for
approximately 10 minutes. The meeting was adjourned at 10:40 a.m.
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