Current Info

PUBLIC EMPLOYEES' RETIREMENT BOARD
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, June 14 and Wednesday, June 15, 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 Chairman Balen at 3:00 p.m., June 14, 2005, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Purisimo Hernandez, David Kallas, Charles Silvestri, George Stevens, and Warren Wish. Members absent: Susan DeFrancesco.

1. INVESTMENTS

1. Staff reviewed The Bank of New York's process for tracking securities litigation as PERS' custodian bank and PERS' policies on lead plaintiff status and securities litigation.

2. ADMINISTRATION

1. Staff discussed the appeals process for members, retired employees, benefit recipients, spouses or any other person with a claim against PERS.

3. PUBLIC COMMENT
4. RECESS
Chairman Balen recessed the meeting at 4:10 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., June 15, 2005, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Purisimo Hernandez, David Kallas, Charles Silvestri, George Stevens, and Warren Wish. Members absent: Sue DeFrancesco.

DISABILITIES

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

   1. Approve total and permanent disability retirement for: Linda Atkinson, Steven Beckstead, Frank Blanks, Dale Christy, Vicki Cooper, Susan Early, Michael Elliott, Jesse Gilkison, Mary Goodwin, Laura Griffin, Janice Habenicht, Virgil Jewett, Ronnie Likes, Sheila Luchansky, Sam Macaluso, Tita Mills, Pamela Penrose, Hilda Redlin, Susan Scofield, Michael Sharkey, Sara Stovall, Diane Walker, Sandra Wassall, Nancy White, Joan Williams, and Rebecca Zuniga-Brown-Jewell.

   2. Approve reemployment requests by disability recipients: Jan Broman, Janice Carmody, Lorriane Eshelman, Sean Evans, Sam Macaluso, Elaine Mason, Patrick O'Donnell, Marston Perkins, Gary Sterrett, Nancy Walsh, and Ingrid Watts.

INVESTMENTS

1. Jill Hatton and Kathy Malitz of BlackRock Realty presented their annual real estate portfolio review and an organizational update.

2. Mark Blackburn, Kevin Johnson, Paul Michaels, and David Ridley of Invesco Realty Advisors presented their annual real estate portfolio review, their REIT's portfolio review and an organizational update.

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

BOARD

1. On motion of Warren Wish, the Board voted unanimously of those present to approve the minutes of the Retirement Board education session and meeting held May 24 and 25, 2005, as submitted.

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

3. On motion of David Kallas, the Board voted unanimously of those present, to cancel the November 2005 education session due to the 2nd Annual PERS' Liaison Conference being held in Las Vegas on November 15, 2005. The Board is invited to attend the conference.

ADMINISTRATION

1. Staff reviewed the provisions of a contract renewal with The Segal Company for Actuarial and Benefit Consulting services and highlighted special projects that will be prepared by The Segal Company. On motion of Purisimo Hernandez, the Board voted unanimously of those present, to instruct staff to contract with The Segal Company for actuarial and benefit consulting services for fiscal year 2006, at a cost not to exceed $310,880.00 and fiscal year 2007, at a cost not to exceed $313,989.00, subject to successful negotiations.

2. Staff reviewed the provisions of a contract renewal with PERS' Medical Consultant, Bruce Nickles, M.D. On motion of Warren Wish, the Board voted unanimously of those present, to approve a contract with Bruce Nickles, M.D. for two years beginning July 1, 2005 and ending June 30, 2007, at a monthly rate of $1,885.00 for fiscal year 2006, and $1,945.00 in fiscal year 2007.

3. Staff presented a contract with Covansys to upgrade PERS' Optica Imaging System due to the purchase of the Optica Imaging Systems by Stellant. On motion of David Kallas, the Board voted unanimously of those present, to approve a contract with Covansys in an amount not to exceed $91,262.00.

LEGISLATION

1. Staff presented a final status report on the legislative bills that PERS' was tracking during the 2005 legislative session.

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

RATIFICATION AGENDA

1. Approved the Administrative Fund disbursements.

2. Approved all personnel action since the last report.

3. Retroactively approved out-of-state travel for Mark Balen to attend the Enhanced Income for Retirement by Education conference June 4-10, 2005 in Killarney, Ireland, at his own expense.

4. Approved an Independent Contract with the Employee's Company of Nevada, Inc. for the period July 1, 2005 through June 30, 2006, at a cost not to exceed $33,020.00.

5. Approved the City of North Las Vegas' request for a penalty waiver in the amount of $430.34.

6. Approved the Final Benefit Audit Report for April 2004.

7. Approved the Final Benefit Audit Report for May 2004.

On motion of David Kallas, the Board voted unanimously of those present, to approve the Ratification Agenda, as submitted.

DENIALS
REPORTS
PUBLIC COMMENTS

1. Roger Maillard, President of the State of Nevada Employees Association AFSCME/Retiree Chapter, mentioned to the Board that PERS had a successful legislative program because of the wonderful executive team the Board employs. Mr. Maillard also thanked Paula Darragh, Director of Informational Systems, for the quick response to his request for information which she provided.

2. The Deputy Attorney General had nothing to report.

3. Administrative report by Staff:

   Executive Officer:

   1. The Executive Officer shared a letter from NASRA regarding federal hearings that will be scheduled in the House of Representatives regarding retirement law reform, possible tax code changes, and mandatory Social Security coverage.

   2. The Executive Officer mentioned she will be speaking at the annual RPEN Washoe Chapter meeting in July.

   Operations Officer:

   1. The Operations Officer introduced the new manager of Employer Services, Cindy Trease. Cindy replaces Brian Snyder who was promoted earlier this month to Supervisor of the Audit Division.

   2. The Operations Officer mentioned that the Cortex draft charters reviewed by the Sub-committee will be available for the Board's review at the next meeting. Another Sub-committee meeting will be scheduled to review the draft policies.

   3. At the request of a board member at a previous meeting, the Operations Officer addressed the additional cost per year to produce retiree/beneficiary checks twice a month instead of the current monthly checks. She explained the on-going cost would be approximately $200,000.00 per year and also a one-time cost would be incurred to upgrade PERS' computer system to produce bi-monthly checks. The same board member also requested the cost involved in identifying a specific date in the month to distribute the benefit checks instead of the current 4th working day prior to the end of the month. The Operations Officer explained the concerns involved with choosing a specific date as the day could fall on a weekend or holiday.

   4. The Operations Officer explained the two reports distributed at the meeting replace one of the reports included in their board packet and the other report was not completed in time to be included in the book.

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

   Mark Balen

   1. Chairman Balen questioned whether PERS requires a specific Real Estate Advisor in addition to our Callan Consultants. Staff mentioned that every ten years PERS' policies require a second opinion review of the entire investment program. This item could possibly be included in that review.

   2. Chairman Balen commended the Executive Staff on the great job they did during the 2005 Legislative Session. The Executive Officer thanked the Board for their support and availability during the session as well.

   Charles Silvestri

   1. Member Silvestri inquired about the involvement of Callan Associates consultant in PERS' real estate portfolios. Staff explained that they participate in PERS' real estate manager searches and provide research and evaluation of different real estate program tools such as the use of REITs.

The following is the time schedule for the meeting:

On June 14, 2005, the Education Session was called to order at 3:00 p.m. by Chairman, Mark Balen and recessed at 4:10 p.m. The June 15, 2005, Board meeting was called to order at 8:00 a.m. Two breaks were taken at 8:50 a.m. and 10:00 a.m. for approximately ten minutes each. The meeting was adjourned at 11:30 a.m.