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PUBLIC EMPLOYEES' RETIREMENT BOARD
20th ANNUAL INVESTMENT PLANNING SEMINAR
AND RETIREMENT BOARD MEETING MINUTES FOR
Wednesday, September 21, and Thursday, September 22, 2005
The agenda for this meeting was mailed to every public employer, the news media, and other groups and
individuals as requested.
The 20th Annual Investment Planning Seminar of the Public Employees' Retirement Board was called to order
by Chairman Balen at 8:30 a.m., September 21, 2005, in the Convention Center of Caesars Tahoe, Stateline,
Nevada. Members present: Mark Balen, Susan DeFrancesco, Purisimo Hernandez, David Kallas, George Stevens,
and Warren Wish. Members absent: Charles Silvestri.
SEPTEMBER 21, 2005
20TH ANNUAL INVESTMENT PLANNING SEMINAR
The 20th Annual Investment Planning Seminar is an educational program presented by staff to the Retirement
Board. The meeting was called to order at 8:30 a.m. and adjourned at 3:15 p.m. There was no action taken
at this meeting.
SEPTEMBER 22, 2005
BOARD MEETING
The Board meeting of the Public Employees' Retirement Board was called to order by Chariman Balen at 8:30 a.m.,
September 22, 2005, in the PERS' Board room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Susan
DeFrancesco, Purisimo Hernandez, David Kallas, George Stevens, and Warren Wish. Members absent: Charles Silvestri.
DISABILITIES
For the record, the Executive Officer mentioned that a spouse of a PERS' employee is on the
list for disability retirement this month and was handled in the same manner as the rest of
the disability requests. On motion of David Kallas, the Board voted unanimously of those
present to:
Approve permanent and total disability retirement for: David Annexstein, Ann Case, Jose De Fuentes,
Shirley Edinger, Dolores Hinkle, Paula Lesbo, Sandra Lilly, Willie Lyles, Gerald Miller, Judith Ramos,
Renee Snyder, Linda Utterback, and Lauraellen Van Diest.
Approve reemployment requests by disability recipients: Linda Conry, Michele Hines, Pamela Maloncon,
Hector Pimentel, and Mary Elaine Sumner.
INVESTMENTS
Staff highlighted the proposed modifications to the Investment Objectives and Policies for the PERS', Legislators'
and Judicial funds. On motion of Warren Wish, the Board voted unanimously of those present to:
Approve the Investment Objectives and Policies for the PERS' fund, as submitted.
Approve the Investment Objectives and Policies for the Legislators' fund, as submitted.
Approve the Investment Objectives and Policies for the Judicial fund, as submitted.
Staff reviewed the Fiscal Year 2005 Investment Plans for the PERS' fund.
Staff presented the Fiscal Year 2006 Investment Plans for the PERS', Legislators', and Judicial funds.
On motion of David Kallas, the Board voted unanimously of those present to approve the Fiscal Year 2006
Investment Plans for the PERS', Legislators', and Judicial funds, as submitted.
There were no recommended changes to the Interim Investment Directives for the PERS', Legislators', or Judicial funds.
Staff presented an update on the PERS' fund U.S. equity value manager search currently underway.
BOARD
On motion of George Stevens, the Retirement Board voted unanimously of those present, to approve
the minutes of the Retirement Board Subcommittee meeting held on August 19, 2005, as submitted.
Staff presented the draft Retirement Board Governance Policies that were drafted by Cortex and
reviewed by the Retirement Board Subcommittee. The draft policies replace some but not all of
the current Retirement Board Duties, Policies, and Procedures. The new policies will be incorporated
in the Retirement Board Duties, Policies, and Procedures document along with any modifications made to
existing policies. After discussion, on motion of David Kallas, the Board voted unanimously of those
present to:
Adopt the Board Operations Policy, Board Policy Development Process, Strategic Planning and
Budgeting Process, Monitoring and Reporting Policy, Board Education Policy, Board and Staff
Travel Policy, and Board Self-Assessment Policy, as amended.
Re-Adopt the Fiduciary Policy Statement, Funding Policy, Police & Firemen's Retirement Fund
Advisory Committee Policy, Legislative, and Staff Education Policy from the Retirement Board
Duties, Policies, & Procedures, as submitted.
Direct staff to prepare a draft human resources policy for consideration by the Board.
On motion of George Stevens, the Board voted unanimously of those present to approve the minutes
of the Retirement Board Education Session and meeting held on August 16-17, 2005, as submitted.
On motion of Sue DeFrancesco, the Board voted unanimously of those present to approve the minutes
of the Retirement Board Closed Session meeting held on August 17, 2005, as submitted.
On motion of Purisimo Hernandez, the Board voted unanimously of those present to authorize the
Executive Officer to accept appointment to the International Foundation of Employee Benefit Plans
Public Employee Board, if offered.
There were no changes to the Retirement Board meeting dates.
There were no changes to the Retirement Board education curriculum calendar.
ADMINISTRATION
Staff reviewed the proposed revisions and additions to the PERS' Official Policies dated July 2005. Chairman Balen
opened the Public Hearing portion on PERS' policies and none was offered. On motion of Warren Wish, the Retirement
Board voted unanimously of those present, to approve the proposed additions and revisions to the PERS' Official
Policies dated July 2005, and directed staff to file the policy revisions with the Secretary of State in accordance
with NRS 286.200.
Staff presented an amendment to the contract with Covansys Corporation for an imaging upgrade. The amendment will
include services related to integration of imaging, workflow, image capture, and extension of the contract end date
for an amount not to exceed $91,100.00. The total contract amount will not exceed $182,726.00 and extends the end
date of the contract to January 31, 2006. On motion of Susan DeFrancesco, the Retirement Board voted unanimously of
those present, to amend the contract with Covansys in an additional amount not to exceed $91,100.00 for a total
contract not to exceed $182,726.00 and to extend the end date of the contract to January 31, 2006.
Staff reviewed a proposed contract with Apex Computing, Inc. for upgrading the current database software. On motion
of Purisimo Hernandez, the Retirement Board voted unanimously of those present to approve the contract with Apex
Computing, Inc., for an amount not to exceed $97,200.00.
RATIFICATION AGENDA
On motion of George Stevens, the Board voted unanimously of those present to:
Approved the Administrative Fund disbursements.
Approved all personnel action since the last report.
Approve out-of-state travel for Board member Charles Silvestri to attend the Plan Sponsor Pension
Fund Consultant Circle conference in Half Moon Bay, California on October 24-25, 2005, at no expense
to the System.
Approve out-of-state travel for appropriate staff to attend a North West Peer Conference in Seaside,
Oregon, October 25-27, 2005.
Approve out-of-state travel for investment staff to attend the National Association of State
Investment Officers (NASIO) annual conference October 16-19, 2005, in Williamsburg, VA.
Approve out-of-state travel for appropriate staff and Board members to attend the National Council on
Teacher Retirement's (NCTR) annual conference which was originally scheduled for New Orleans, but due to
hurricane Katrina the conference was moved to Tampa, Florida October 6-10, 2005.
Approve the Final Benefit Audit for August 2004.
Approve out-of-state travel for appropriate staff to attend the Coda Financial's annual conference
October 11-13, 2005, in Portsmouth, New Hampshire.
Approve an amendment to C*A*R*S*O*N support contract with Covansys Corporation to extend the end date
of the contract to October 31, 2005.
APPEALS
Staff provided background information on Dr. Janet Martin Guinn's request for a refund of employee and employer
contributions with interest. Dr. Guinn is requesting she receive a disbursement from PERS of both employee and
employer contributions posted to her account. She is also requesting interest on the monies. Dr. Guinn asserts
that she contacted PERS numerous times via telephone over the past six years and was told that there were no funds
available for refund. Dr. Guinn did not submit a Member Contribution Refund Request form until August 19, 2005.
Her employee contributions were refunded to her on August 25, 2005 in the amount of $6,029.19.
Applicable law that applies to Dr. Guinn's request can be found at NRS 286.430 which includes the requirement that
PERS shall not refund contributions until it has received a properly completed application for refund. Also, under
Section 1 of NRS 286.435, interest provisions do not apply to the withdrawal of employee contributions but rather
apply to the repayment of employee contributions in certain circumstances.
Staff has reviewed Dr. Guinn's request in conjunction with all related statutory regulation regarding withdrawal of
contributions. The statute related to the withdrawal of contributions is clear and unambiguous. The System legally
could not refund employee contributions prior to the receipt of a properly completed application for refund form.
There are no provisions within the statute that provide for the withdrawal of employer contributions or the payment
of interest on refunded employee contributions. Therefore, staff recommends denying the request by Dr. Janet Martin
Guinn for refund of employer contributions and interest on monies refunded.
Dr. Guinn addressed the Board regarding her request for employer contributions with interest that she feels she is
entitled to due to a settlement she received. Dr. Guinn reviewed the process she went through to receive a refund
of employee contributions by contacting the System several times by telephone over the past six years and stated she
never received an application for refund form from PERS. Dr. Guinn requested certified copies of her PERS' member file.
Staff will provide Dr. Guinn with copies of her file.
The Deputy Attorney General stated for the record that PERS is not a party to any litigation involving Dr. Janet
Martin Guinn. He also mentioned that the pertinent statutes are contained in the staff memorandum included in the
Retirement Board's materials.
After discussion, on motion of David Kallas, the Board voted unanimously of those present to deny the request by
Dr. Janet Martin Guinn for refund of employer contributions and interest on monies refunded.
There were no individual statement and/or requests by the members, retired employees and/or the public.
The Deputy Attorney General had nothing to report.
Administrative report by Staff:
Investment Officer:
The Investment Officer mentioned that as required by Retirement Board policy the process for solicitation
for a second opinion review of the investment program is underway. Staff hopes to mail out approximately
40 solicitation letters on September 23, 2005. Staff will keep the Board apprised of the progress of the
search.
Executive Officer:
The Executive Officer mentioned that the Operations Officer is not present at the meeting as she gave birth
to a healthy baby girl this morning. Mother and baby are doing fine.
The Executive Officer thanked the Board and all the Staff particularly Karen Kimball, for all their hard
work in preparing and organizing PERS' 20th Annual Investment Planning Seminar. Everyone did a great job.
The Executive Officer met with the System's actuarial firm prior to the seminar and discussed the
following tasks:
PERS' 2005 actuarial valuation is on schedule to be presented to the Board at the November meeting.
Staff is working with the actuary to schedule an Asset/Liability study for spring 2006.
Staff is planning for a Benefit Adequacy study to be performed against other systems
and/or Social Security packages to see how PERS' benefits compare.
Staff will review the Benefit Restoration Trust policy with the actuary to determine
if any modifications are necessary due to any Federal tax law changes.
The Executive Officer congratulated PERS' Management Analyst and Counselors that have obtained or are
studying for their International Foundation for Retirement Education (INFRE) certification. This certification
requires they pass four separate examinations. PERS applauds their extra effort and wish them great success
in the certification process. Once certified they are required to obtain continuing education credits annually.
Questions and/or comments by members of the Retirement Board.
Mark Balen
Chairman Balen thanked Dana Bilyeu, Tina Leiss, Laura Wallace and all staff members that were involved with
PERS' 20th Annual Investment Planning Seminar as they did an exemplary job. The seminar was a huge success.
Mr. Balen received lots of positive feedback and was surprised that more plans don't hold this type of venue
for their trustees.
Warren Wish
Warren Wish mentioned that the topics for the seminar were very current and the food was incredible. Thank
you to all the staff for putting such a great program together.
Susan DeFrancesco
Susan DeFrancesco commented that the seminar topics/information was valuable to the investment managers as
individuals as well as in their professional lives. A lot of planning went into choosing the topics and I
appreciate all of the staff's hard work in organizing the seminar.
David Kallas
David Kallas reported that he will not be available to attend the November 15-16, 2005 Retirement Board
meeting due to a conflict.
ADJOURNMENT
The meeting was adjourned by Chairman Balen at 11:35 a.m.
The following is the time schedule for the meeting:
On September 21, 2005, the 20th Annual Investment Planning Seminar was called to order at 8:30 a.m. by Chairman Balen
and recessed at 3:15 p.m. The September 22, 2005, Board meeting was called to order at 8:00 a.m. A break was taken
at 9:45 a.m. for approximately ten minutes. The meeting was adjourned at 11:35 a.m.
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