Current Info

PUBLIC EMPLOYEES' RETIREMENT BOARD
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, August 16 and Wednesday, August 17, 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., August 16, 2005, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Purisimo Hernandez, George Stevens, and Warren Wish. Members absent: Susan DeFrancesco, David Kallas and Charles Silvestri.

1. INVESTMENTS

1. Staff discussed the goals and components of asset allocation and how the decision influences projections for the future.

2. ADMINISTRATION

1. Staff reviewed how service credit is accumulated in the PERS', Legislators' and Judicial Retirement Systems.

3. QUESTIONS AND ANSWERS
4. RECESS

Chairman Balen recessed the meeting at 4:00 p.m.

The Board meeting of the Public Employees' Retirement Board was called to order by Chairman Balen at 8:00 a.m., August 17, 2005, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Sue DeFrancesco, Purisimo Hernandez, Charles Silvestri (via telephone), George Stevens, and Warren Wish. Members absent: David Kallas.

DISABILITIES

1. On motion of Warren Wish, the Board voted unanimously of those present to:

   1. Approve permanent and total disability retirement for: Michelle Andersen, Robert Bachtel, Darryl Brown, Patricia Brown-Stopka, Darlene Cunningham, Roger DeVries, Daniel Eller, Richard Franta, Susan Graf, Rex Harold, Karen Hinton, Theadore Inness, Kathleen McLean, Timothy Mutch, Randy Paar, Martina Root, George Smith, and Pamela Sword-Frakes.

   2. Approve reemployment requests by disability recipients: JoDean Freese, David Garrick, Michael Novotny, Clark Skinner, Patricia Walker-Cooperman, and Michael Wilmott.

   3. Deny the reemployment request by disability recipient Sue Markert.

INVESTMENTS

1. Ruthann Moomy of Callan Associates and staff presented the 2005 fiscal year-end performance review for the PERS', Legislators' and Judicial funds.

2. Staff reviewed the proposed modifications to the Alternative Investment Reporting Guidelines. On motion of Purisimo Hernandez, the Board voted unanimously of those present to approve the Alternative Investment Reporting Guidelines, as submitted. Mr. Silvestri was not present for this vote.

3. Staff highlighted the proposed changes to the Interim Investment Directives for the PERS' fund. On motion of Warren Wish, the Board voted unanimously of those present to approve the Interim Investment Directives for the PERS' fund, as submitted. Mr. Silvestri was not present for this vote.

BOARD

1. Staff reviewed the proposed governance charters for the Retirement Board, the Board Chair, the Board Vice-Chair, and the Executive Officer as drafted by Cortex and reviewed by the Retirement Board Subcommittee. On motion of Warren Wish, the Retirement Board voted unanimously to adopt the Charter of the Retirement Board, Charter for the Board Chair, the Board Vice-Chair, and the Executive Officer's Charter, as amended. Mr. Silvestri was not present for this vote.

2. Ms. DeFrancesco requested a correction to the minutes of July 19 and 20, 2005. On motion of Susan DeFrancesco, the Board voted unanimously of those present to approve the minutes of the Retirement Board education session and meeting held July 19 and 20, 2005, as amended.

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

4. There were no changes to the Retirement Board education curriculum calendar.

ACCOUNTING

1. Staff reviewed the adjustment of administrative fees for the Public Employees' Retirement System for fiscal year 2006. On motion of Warren Wish, the Retirement Board voted unanimously of those present, to approve a per capita fee of $3.04 per month for each Regular member and benefit recipient and $3.25 per month for each Police/Fire member and benefit recipient, retroactive to July 1, 2005. Mr. Silvestri was not present for this vote.

2. Staff reviewed the adjustment of administrative fees for the Legislators' Retirement System for fiscal year 2006. On motion of Purisimo Hernandez, the Retirement Board voted unanimously of those present, to approve a per capita administrative fee of $18.24 per month for fiscal year 2006 for the Legislators' Retirement System. Mr. Silvestri was not present for this vote.

3. Staff reviewed the adjustment of administrative fees for the Judicial Retirement System for fiscal year 2006. On motion of George Stevens, the Retirement Board voted unanimously of those present, to approve a per capita administrative fee of $59.85 per month for fiscal year 2006 for the Judicial Retirement System. Mr. Silvestri was not present for this vote.

ADMINISTRATION

1. Staff highlighted the 2005 revisions to PERS' Annual Strategic Plan. Mr. Wish requested a grammatical change on page 7 and staff will include the Judicial Retirement System on page 4 under the 2nd opinion review of PERS' Investment Program. On motion of Purisimo Hernandez, the Board voted unanimously of those present, to approve PERS' 2005 Strategic Plan Revision, as amended. Mr. Silvestri was not present for this vote.

2. Staff presented the minutes and recommendations of the Police and Firefighter's Retirement Fund Advisory Committee meeting held July 21, 2005. On motion of George Stevens, the Board voted unanimously of those present to approve staff and committee recommendations as set forth in the minutes of the Police and Firefighter's Retirement Fund Advisory Committee meeting held July 21, 2005, as submitted. Mr. Silvestri was not present for this vote.

3. Staff reviewed the request by Pershing General Hospital for a penalty waiver in the amount of $33,928.27 for late submittal of wage and contribution reports and PERS' contributions. Marjorie Skinner, Director of Finance and Matt Reese, Administrator of Pershing General Hospital reviewed the financial obligations and financial health of the hospital. Mr. Reese requested the penalty waiver be approved based on the amount of debts and responsibilities of the costs of upcoming improvements required to the hospital. Currently, the hospital is up to date on their obligations to PERS. After discussion, on motion of Sue DeFrancesco, the Board voted unanimously of those present to deny the request by Pershing General Hospital for a penalty waiver in the amount of $33,928.27. Mr. Silvestri was not present for this vote.

4. Staff reviewed the request by Carson City School District for an accounts receivable write-off for overpaid benefits to Kenneth Collins in the amount of $5,533.55. On motion of Sue DeFrancesco, the Board voted 4-yeas and1-not voting of those present, to deny the request by the Carson City School District for an accounts receivable write-off for overpaid benefits to Kenneth Collins in the amount of $5,533.55. Mr. Wish declined from voting on this item due to his employment with the Carson City School District. Mr. Silvestri was not present for this vote.

RATIFICATION AGENDA

On motion of Sue DeFrancesco, the Board voted unanimously of those present to approve the Ratification Agenda, as submitted. Mr. Silvestri was not present for this vote.

1. Approved the Administrative Fund disbursements.

2. Approved all personnel action since the last report.

3. Approved out-of-state travel for appropriate staff and Board members to attend the National Council on Teacher Retirement's (NCTR) annual conference October 6-10, 2005 in New Orleans, Louisiana.

4. Approved a contract renewal with Cost Effectiveness Measurement (CEM) for fiscal years 2006 and 2007.

5. Retroactively approved PERS' membership request by the Rye Patch Volunteer Fire Department, effective July 1, 2005.

6. Approved the 2005 Asset Limit Report for the PERS', Legislators', and Judicial funds.

7. Approved an independent contract with Cheryl Price for the period of August 24, 2005 to June 30, 2006, at a cost not to exceed $20,000.00.

8. Approved Mt. Grant General Hospital's request for a penalty waiver in the amount of $1,032.57.

9. Approved the Benefit Payment Audit Report for the Quarter Ending 6/30/05.

DENIALS
REPORTS
PUBLIC COMMENTS

1. Dr. Janet Guinn addressed the Board to request a refund of her PERS' contributions with interest. She stated she has requested refund forms but never received them. She also requested interest be paid to her on her contributions which makes her total request from PERS approximately $23,000.00 by her calculations. A member of PERS' staff handed Dr. Janet Guinn an application for refund during the meeting.

2. The Deputy Attorney General reported that the Shirley Brandt lawsuit was dismissed.

3. Administrative report by Staff:

   Executive Officer:

   1. The Executive Officer reported that she participated, at the request of the State Treasurer, in telephone conferences with Moody's and S&P to assist the State in receiving a higher bond rating. The Operations Officer also participated in a telephone conference with Fitch. Robin Reedy thanked PERS for their participation.

   2. The Executive Officer stated that the National Association of State Retirement Administrators' (NASRA) conference in Alaska was very interesting and focused on the Defined Benefit vs. the Defined Contribution plan debate. The host state of Alaska has just converted to a defined contribution plan for all new hires. CalPERS reported on their efforts to maintain their defined benefit plan. The lawmakers in California filed an initiative petition to outlaw defined benefit plans which gagged CalPERS from discussing the different plans. The unions, specifically the ones representing the police and firemen, were successful in defending the defined benefit plan. The California Governor has stated he will review the state retirement system in the coming years. The Executive Officer mentioned the Gerontologist who discussed the aging of the population at the NASRA conference is sending a copy of his book to PERS.

   3. Next year the NASRA conference will be held in San Diego, California.

   Operations Officer:

   1. The Operations Officer reported that PERS has received approximately $500,000.00 toward UMC's outstanding contributions for employees not reported correctly to PERS as discovered by PERS' audit staff.

   2. The Operations Officer mentioned that the 1/5-of a year purchases have been completed and PERS has received approximately $5 million for those purchases.

   3. The Operations Officer stated that one employer has elected to allow their justices of the peace and municipal judges move to the Judicial Retirement System. Counseling programs and appointments have been scheduled.

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

   Mark Balen

   1. Chairman Balen mentioned that the NASRA conference was very informative and appreciated the opportunity to attend.

   Warren Wish

   1. Warren Wish requested that Dr. Janet Quinn's staff denial be presented at a future meeting as an official appeal.

      Mr. Wish also stated that the NASRA conference was very informative and appreciated the opportunity to attend.

   Purisimo Hernandez

   1. Mr. Hernandez also thanked the Board for the opportunity to attend the NASRA conference.

RECESS

1. BOARD

1. On motion of George Stevens, the Board voted unanimously of those present to go into a Closed Executive Session pursuant to NRS 241.030(1) for Executive Officer Professional Performance review. On motion of Purisimo Hernandez, the Board voted unanimously of those present to return to open session.

2. The Retirement Board completed the Executive Officer Performance Evaluation for fiscal year 2005. The following categories and scores reflect the Board's action by voice vote:

   1.	Leadership	- Exceeds (unanimous of those present)
   2.	Strategic Planning	- Exceeds (unanimous of those present)
   3.	Budget	- Exceeds (unanimous of those present)
   4.	Policy	- Exceeds (5-exceeds 1-meets)
   5.	Operations	- Exceeds (5-exceeds 1-meets)
   6.	Investments	- Exceeds (unanimous of those present)
   7.	Legislation	- Exceeds (unanimous of those present)
   8.	Actuarial	- Exceeds (unanimous of those present)
   9.	Public Relations	- Exceeds (unanimous of those present)
   10.	Board Relations	- Exceeds (unanimous of those present)

   The Retirement Board Vice-Chairman volunteered to complete the evaluation form and include the Board's comments from the closed executive session. The Chairman and Vice-Chairman will present the formal evaluation to the Executive Officer.

2. ADJOURNMENT

The meeting was adjourned by Chairman Balen at 2:35 p.m.

The following is the time schedule for the meeting:

On August 16, 2005, the Education Session was called to order at 3:00 p.m. by Chairman Balen and recessed at 4:00 p.m. The August 17, 2005, Board meeting was called to order at 8:00 a.m. and closed by motion of George Stevens for consideration of disability retirements. Three breaks were taken at 9:00, 10:10, and 10:45 a.m. for approximately ten minutes each. The meeting was recessed at 12:10 pm for lunch and called back to order at 1:37 pm. On motion of George Stevens, the Board went into a Closed Session for an Executive Officer Professional Performance review at 1:40 p.m. The meeting reopened at 2:30 pm on motion of Purisimo Hernandez and was adjourned at 2:37 p.m.