Current Info

PUBLIC EMPLOYEES' RETIREMENT BOARD
EDUCATION SESSION AND MEETING MINUTES FOR
Tuesday, December 13 and Wednesday, December 14, 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., December 13, 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 discussed what international bonds are and how they work to reduce risk in the PERS', Legislators', and Judicial portfolios.

2. ADMINISTRATION

1. Staff gave a demonstration of PERS' new retiree web access program and how to review your retiree account information.

3. PUBLIC COMMENT
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 Board Chairman Mark Balen at 8:00 a.m., December 14, 2005, in the PERS' Board Room, 693 West Nye Lane, Carson City. Members present: Mark Balen, Susan DeFrancesco (via telephone), Purisimo Hernandez, David Kallas, Charles Silvestri, George Stevens, and Warren Wish. Members absent: None.

DISABILITIES

1. For the record, George Stevens stated that he knows Mr. Walter Kokich. On motion of Warren Wish, the Board voted unanimously to:

   1. Approve permanent and total disability retirement for: James Collingwood, Mickey Faulkner, Debra Harris, Timothy Howard, Walter Kokich, Frances Martinez, Lisa Nilsen, Victor Orel, Marvin Richardson, Randella Sparks, Jerilyn Sorkness, Earl Sufficool, and John Valdenegro.

   2. Approve reemployment requests by disability recipients: Mary Bayer, Carol Gaydos, Tracy Jackson, Marilyn Jenkins, Debbie Peters, Everlean Sampson, and Bryon Slobe.

INVESTMENTS

1. Dick Graf and David Kroon of WestAM presented a Lehman Aggregate Bond Index portfolio update for the PERS' fund and provided an organizational update on the status of their firm with their parent company, WestLB.

2. Cooke & Bieler, Delaware Associates, and T. Rowe Price interviewed for a domestic value equity mandate for the PERS' fund. After discussion, on motion of David Kallas the Board voted unanimously of those present to defer any further action on items B. and C. until the January 2006 meeting. Susan DeFrancesco was not available for this vote.

3. Action on this item was deferred until the January 2006 meeting.

4. Staff presented the amended change to Interim Investment Directive #17 for the PERS' fund to include, "no new funds will be distributed to WestAM." On motion of David Kallas, the Board voted unanimously of those present to approve the amended Interim Investment Directives for the PERS' fund. Susan DeFrancesco was not available for this vote.

BOARD

1. Staff presented the proposal from Cortex Applied Research, Inc. for Governance Support Services. On motion of Charles Silvestri, the Retirement Board voted unanimously to approve the proposed governance support services agreement with Cortex Applied Research, Inc., without optional services as set forth in paragraph 7 of the proposal (Measuring Asset Management Principles (MAP)), at a cost not to exceed $44,500.00 annually. Susan DeFrancesco was not available for this vote.

2. On motion of Charles Silvestri, the Retirement Board voted unanimously of those present to approve the minutes of the Retirement Board meeting held November 16, 2005, as submitted. Susan DeFrancesco was not available for this vote.

3. On motion of David Kallas, the Retirement Board voted unanimously of those present to change the March 2006 and October 2006 Retirement Board education sessions and meeting dates to March 21-22, 2006 and October 24-25, 2006. Susan DeFrancesco was not available for this vote.

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

ADMINISTRATION

1. Staff reviewed the background information on Pershing General Hospital and the assessment of penalties. Staff then presented the payment plan proposal from Pershing General Hospital. On motion of Warren Wish, the Retirement Board voted unanimously of those present to approve the proposed payment plan as submitted, to reflect compliance with NRS 286.460(5). Susan DeFrancesco was not available for this vote.

RATIFICATION AGENDA

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

1. Approved the Administrative Fund disbursements.

2. Approved all personnel action since the last report.

3. Retroactively approve out-of-state travel for Board member Mark Balen to participate in a panel discussion at the Public Fund Board's Forum conference in San Francisco, California, December 4-7, 2005, at no expense to the System.

4. Approve out-of-state travel for Board member Mark Balen to participate as a panel member at the Public Funds Summit conference in Scottsdale, Arizona on January 11-13, 2006, at no cost to the system.

5. Approve the Reinstatement of Survivor Benefits for Kayson Craig Pulsipher.

6. Approve the agreement between the System and Independent Fiduciary Services to provide 2nd opinion review related services.

7. Approve the Support Services Agreement with ImageSource, Inc. for the period from January 1, 2006 through December 31, 2006, at a cost not to exceed $49,765.00. Susan DeFrancesco was not available for this vote.

DENIALS
REPORTS
PUBLIC COMMENTS

1. There were no individual statements and/or requests by the members, retired employees and/or the public.

2. The Deputy Attorney General had no report.

3. Administrative report by Staff:

   Executive Officer:

   1. The Executive Officer announced that the Interim Retirement and Benefits Committee has scheduled their next meeting for January 25, 2006 at 2:00 p.m. Staff is working with the Legislative Counsel Bureau on the agenda items with a due date of January 6, 2006. New committee members were identified as Senator Beers, Assemblywoman Koivisto, and Assemblyman Seale.

   2. The Executive Officer mentioned that staff will discuss the November statistics at the January meeting.

   3. The Executive Officer wished everyone a very Merry Christmas and a Happy New Year on behalf of all the PERS' staff.

   Investment Officer:

   1. The Investment Officer mentioned that staff is looking into making some building modifications to accommodate the members, retirees, and staff better.

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

9. ADJOURNMENT

The meeting was adjourned at 1:00 p.m. by Chairman Balen.

The following is the time schedule for the meeting:

On December 13, 2005, the Education Session was called to order at 3:00 p.m. by Chairman Balen and recessed at 4:00 p.m. The December 14, 2005, Board meeting was called to order at 8:00 a.m. On motion of David Kallas the meeting was closed at 8:00 a.m. to discuss disabilities and opened on motion of David Kallas at 8:15 a.m. Two breaks were taken at 9:05 and 11:15 a.m. for approximately ten minutes each. The meeting was adjourned at 1:00 p.m.