MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
OFFICE OF THE STATE COMPTROLLER

7TH FLOOR CONFERENCE ROOM
55 ELM STREET
HARTFORD, CT 06106

April 17, 2014

TRUSTEES PRESENT
Peter R. Blum
Robert Baus
Sandra Fae Brown-Brewton
Michael Carey
Robert Coffey
Paul Fortier
Steve Greatorex
Sal Luciano
Ronald McLellan
Claude Poulin
Linda Yelmini

TRUSTEES ABSENT
Laila Mandour
Richard Cosgrove

EX OFFICIO MEMBERS
Martha Carlson, Deputy Comptroller
Lee Ann Palladino, CIO, State Treasury

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Natalie Braswell, Asst. Comptroller
Colin Newman, Assistant Director, Retirement Services Division
Donald Wilkerson, Assistant Director, Retirement Services Division
Peggy Gray, Executive Secretary, Retirement Services Division
Attorney Michael Rose, Counsel to the Commission

GUESTS
Attorney Lawrence Sgrignari
Michael Quintiliano
Edward Dobbins

CALL TO ORDER

The Chairman called the meeting to order at 9:06 a.m.

CHAIRMAN'S REPORT
Nothing to report from the Chairman

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

Employee Benefit Statements - We completed and posted the RFP, the current contract expires April 30, 2014.

Following the close of the April retirement payroll, the Division processed 241 new retirees (223 normal, 7 disabilities, 8 Voluntary Pending and 3 Hybrid). Finalizations for the month of April were 122 normal and 12 disabilities. The total number of the backlog on unfinalized retirement records is approximately 11,913.

We have received a total of 1,077 requests to transfer from the ARP to Hybrid. Of that number 892 were transfers, 172 retirees, 9 waivers, 4 prospective. We received in 37 applications during the month.

Pending Disability Applications as of March 31, 2014

Pending Applications: 213
(applications preliminarily reviewed - 50
(applications waiting for documentation - 163
Applications scheduled: 212
Total Pending: 425


FOR THE MONTH OF MARCH
Number of Applications Received 17
Number of Applications on Agenda 23
Number of Applications Approved 11

The next available meeting for scheduling is October 2014.

I would like to introduce our new Assistant Division Director, Donald Wilkerson. He will be responsible for the Audit Unit and the Purchasing Unit.

Educational information regarding GASB 67 & 68 was presented by John Garrett at the Office of the State Treasurer - Public Finance Outlook Conference on Thursday, April 3rd . He did an excellent job and the audience appreciated his presentation and sense of humor. The second presentation is with the CT Society of CPA's on Thursday, May 15th.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE MARCH 20, 2014 MINUTES . Mr. Baus moved, seconded by Mr. Poulin to approve the March 20, 2014 minutes with Mr. Casella's additions. All voted in favor

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF MINUTES FOR THE SPECIAL MEETING HELD ON MARCH 28, 2014 MINUTES Mr. Baus moved, seconded by Mr. Casella to approve the minutes of the Special Meeting held on March 28, 2014. All voted in favor

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Chairman's Per Diem expenses reimbursements. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF MARCH 2014 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System Service retirements for the month of March 2014. All voted in favor

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM PRE-RETIREMENT DEATH RETIREMENTS FOR THE MONTH OF MARCH 2014 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System pre-retirement Death retirements for the month of March 2014. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM VOLUNTARY PENDING RETIREMENTS FOR THE MONTH OF MARCH 2014 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees System Voluntary Pending retirements for the month of March 2014. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM RETRO-ACTIVE RETIREMENTS FOR THE MONTH OF MARCH 2014 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees
Retirement System Retro-active retirements for the month of March 2014. All voted in favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Poulin to approve the Municipal Employees Retirement System retirements. All voted in favor

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEES PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Management Trustee's Per Diem and Travel expenses.
All voted in favor, Mr. Baus abstained

Majority Decision

10. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEES PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel expenses. All voted in favor, Mr. Poulin abstained

Majority Decision

11. REQUEST COMMISSION APPROVAL OF RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM Mr. Luciano moved, seconded by Mr. Greatorex to approve the recommendations of the Medical Examining Board relative to applications for Disability Retirement received from the Municipal Employees Retirement System. All voted in favor

Unanimous Decision

12. REQUEST COMMISSION ACCEPTANCE OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES PERSONNEL EXPENSES PAY PERIOD FEBRUARY 7, 2014 THROUGH MARCH 6, 2014 Mr. Luciano moved, seconded by Ms. Brown-Brewton to accept the Connecticut Probate Judges and Employees Personnel expenses pay perion of February 7, 2014 through March 6, 2014. All voted in favor

Unanimous Decision

13. REQUEST COMMISSION ACCEPTANCE OF PROBATE JUDGES' AND EMPLOYEES RETIREMENT FUND BALANCE SHEET AND STATEMENT OF OPERATIONS AS OF DECEMBER 31, 2013 Mr. Luciano moved, seconded by Ms. Brown-Brewton to accept the Probate Judges' and Employees Retirement Fund Balance Sheet and Statement of Operations as of December 31, 2013. All voted in favor

Unanimous Decision

14. REQUEST COMMISSION APPROVAL OF THE PROBATE COURT ADMINISTRATOR'S REQUEST TO TRANSFER $294,154 IN ADDITIONAL CONTRIBUTIONS FOR FISCAL YEAR 2014 TO THE PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM Mr. Poulin moved, seconded by Mr. Greatorex to approve the Probate Court Administrator's request to transfer $294,154 in additional contributions for fiscal year 2014 to the Probate Judges and Employees Retirement System.
All voted in favor

Unanimous Decision

15. REQUEST COMMISSION REVIEW AND DISCUSSION OF DRAFT CLASS SPECIFICATION FOR MEDICAL EXAMINING BOARD PHYSICIAN AND THE PROPOSED SCHEDULE FOR RECRUITING AND HIRING OF THE PHYSICIANS Mr. Luciano moved, seconded by Mr. Greatorex to review the Draft Class Specification for the Medical Examining Board Physicians and the proposed schedule for recruiting and hiring of the physicians. There are issues to look into such as licensing issues and checking to make sure the doctors are in good standing. It was also questioned whether the doctors have to be surgeons also as stated or is it dependent on their specialty. NO MOTION TAKEN

16. REQUEST COMMISSION APPROVAL OF THE MARCH 28, 2014 RECOMMENDATIONS RECEIVED FROM ITS SUBCOMMITTEE ON PURCHASE OF SERVICE AND RELATED MATTERS Mr. Casella moved, seconded by Mr. Poulin to approved the recommendations received from its Subcommittee on Purchase of Service and Related Matters. All voted in favor

Unanimous Decision

TABLED ITEMS

REQUEST COMMISSION RECOMMENDATIONS OF THE REGULATIONS AND OVERPAYMENT SUBCOMMITTEE PERTAINING TO ACCOUNTS RECEIVABLE RELATED TO WRITE-OFFS. Mr. Casella moved, seconded by Ms. Yelmini to table until next month for further study and legal/fiduciary responsibilities to writing off certain amounts as stated in Sec. 3-7 of the CT State Statues. Mr. Casella then moved, seconded by Ms. Yelmini to refer this issue to the Legal and Personnel Subcommittee. All voted in favor

Item Tabled

REQUEST THAT THE STATE EMPLOYEES RETIREMENT COMMISSION REVIEW AND RECONSIDER ITS DECEMBER 20, 2012 DENIAL OF DONNA FIELDHOUSE'S CLAIM THAT SHE RECEIVE PRE-RETIREMENT DEATH BENEFITS Ms. Yelmini moved, seconded by Ms. Brown-Brewton to deny the request of Donna Fieldhouse's claim that she receive Pre-retirement Death benefits for her husband. Although this is always a difficult decision all voted in favor of denial.

Unanimous Decision


DISCUSSION

REQUEST COMMISSION DISCUSSION ON THE EDUCATIONAL ARTICLE PERTAINING TO THE STABLE VALUE FUND GUARANTEED RATE OF RETURN
Mr. Greatorex who requested this item asked that it be removed from the agenda. He received his answers at the HCCC meeting on April 16, 2014.

Item removed from agenda

EXECUTIVE SESSION

RFP for Legal Services pertaining to IRS matters (Conn. Gen. Stat. 1-200(2))
Mr. Casella moved, seconded by Mr. Poulin to go into Executive Session at 9:53 a.m. to discuss the RFP for Legal Services pertaining to IRS matters (Conn. Gen Stat. 1-200)2)) with Attorney Rose in attendance. Only Trustees and attorney remained in the room.

At 10:22 a.m. The Commission came out of Executive Session, Mr. Casella moved, seconded by Mr. Poulin to refer this matter to the Legal and Personnel Subcommittee to act as the Screening Committee.

At 10:24 a.m. Mr. Casella moved, seconded by Mr. Carey to go into Executive Session to discuss the Leff matter with Attorney Michael Rose in attendance (Conn. Gen. Stat. 1-200(6)(B)).

At 10:30 a.m. Mr. Casella moved, seconded by Mr. Carey to come out of Executive Session. Mr. Baus moved, seconded by Mr. Fortier to authorize the repayment of $17, 000 as discussed in Executive Session. All voted in favor.

Unanimous Decision

At 10:34 a.m. Mr. Casella moved, seconded by Mr. Carey to go back into Executive Session to discuss the Public Auditors' request, (Conn. Gen. Stat. 1-200(6)(E) and 1-210(b)(10) with Attorney Rose.

At 10:40 a.m. Mr. Casella moved, seconded by Mr. Carey to have Attorney Rose draft a response for the Commission's review. All voted in favor

Unanimous Decision

At 10:45 Mr. Casella moved, seconded by Mr. Carey to discuss the Maturo with respect to Counsel's opinion letter (Conn. Gen. Stat. 1-200(6)(B) and (E)); and the
Brown v. OSC/SERC matter - Discussion of pending claim/legal strategy (Conn. Gen. Stat.1-200(6)(B));

At 11:45 Mr. Casella moved, seconded by Mr. Carey to come out of Executive Session

No motions were made


ADJOURNMENT

Mr. Luciano moved to adjourn at 11:50 a.m.



_________________________ _______________________
Brenda K. Halpin, Director Peter R. Blum, Chair
Retirement Services Division


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