APPROVED
MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106

April 19, 2012

TRUSTEES PRESENT
Peter R. Blum
Bob Baus
Charles Casella
Sal Luciano
Steve Greatorex
James Dzurenda
Robert Coffey
Richard Cosgrove
Ronald McLellan
Linda Yelmini
Paul Fortier
Michael Carey
Thomas Culley

EX OFFICIO MEMBERS
Deputy Comptroller Martha Carlson, Designee for State Comptroller Kevin Lembo
Lee Ann Palladino, CIO, Designee for State Treasurer Denise Nappier

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Attorney Helen Kemp, Asst. Director and Division Counsel, Retirement Services Division
Colin Newman, Asst. Director, Retirement Services Division
Jeanne Kopek, Asst. Director, Retirement Services Division
Natalie Braswell, Assistant State Comptroller
George Spurlock, CEUI
Nancy Paretti, Transcriber

ABSENT
Sandra Fae Brown-Brewton

GUESTS
Darek Massalski
Robert Brackett
Attorney Mark Mercier
Daniel Micari
Gordon Scott Bell
Diane Hoffman
Carol Sullivan

CALL TO ORDER
The Chairman called the Commission to order at 9:03

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

At the last meeting a question came up regarding the Attorney Client Privilege. I have looked into the matter and will be providing a document to you for your review. Please let me know if you would like to discuss this matter and it can be added to the agenda for the next meeting.

Following the close of the April 2012 retirement payroll, the current backlog of unfinalized retirement records is approximately 12,985. The Division processed 160 new retirees (146 normal, 14 disabilities) to payroll for April. Finalizations for the month were 197.

Pending Disability Applications as of March 31, 2012

Pending Applications 86
Pending Applications waiting for documentation 205
Applications Scheduled for upcoming meetings 93
Total Pending 384

For the month of March
Number of Applications Received 24
Number of Applications on Agenda 44
Number of Applications Approved 13

The next available meeting for scheduling is July 2012.

I have provided a copy of a letter from Sandler & Mara, P.C. regarding a retiree, D. Carter. I wanted to make you aware of what the attorney is requesting. Is this something that should be provided to the firm that is looking into this matter and/or should they provide a response? It was determined that the Division should respond with the information that we have available at this time.

The Hybrid Plan Estimators have been completed and are now on the OSC Website.

We have a few pending items for the Purchasing and Other Related Matters Subcommittee. We would like to schedule a meeting for the end of May or beginning of June 2012, I am requesting subcommittee members to provide their availability to determine a date.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE MARCH 15, 2012 MINUTES Mr. Luciano moved, seconded by Mr. Poulin to approve the March 15, 2012 minutes All voted in favor

Unanimous Decision

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

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Service Retirements for the month of March 2012.All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr.Greatorex to approve the State Employees Retirement System Voluntary Pending Disability Retirements for the month of March 2012. All voted in favor

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Disability Retirements for the month of March 2012. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Retroactive Retirements for the month of March 2012.All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE RETIREMENT DEATH BENEFIT RETIREMENTSFOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Pre Retirement Death Benefit Retirements for the month of March 2012. All in favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM SPOUSE RETIREMENTS FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Judges, Family Support Magistrates and Compensation Commissioners Retirement System Spouse Retirements for the month of March 2012. All voted in favor

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Probate Judges and Employees Retirement System Retirements. All voted in favor

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Probate Judges and Employees Retirement Fund Personnel Expenses for the month of March 2012. All voted in favor

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL EMPLOYEE RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the Municipal Employee Retirement System Retirements. All voted in favor

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF MARCH 2012Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Management Trustee's Per Diem and Travel Expenses Reimbursements for the month of March 2012. All voted in favor.Mr. Baus Abstained

Majority Decision

13. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF MARCH 2012 Mr. Luciano moved, seconded by Mr. Baus to approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel Expenses Reimbursements for the month of March 2012. All voted in favor. Mr. Poulin abstained

Majority Decision

14. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT FUND B STATEMENT OF OPERATIONS FOR THE YEAR ENDING DECEMBER 31, 2011 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Municipal Employees Retirement Fund B Statement of Operations for the year ending December 31, 2011. All in favor

Unanimous Decision

15. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT FUND B BALANCE SHEET AS OF DECEMBER 31, 2011 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Municipal Employees Retirement Fund B Balance Sheet as of December 31, 2011. All in favor

Unanimous Decision

16. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES' AND EMPLOYEES' RETIREMENT FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDING DECEMBER 31, 2011 Mr. Luciano moved, seconded by Mr. Poulin to approve the Probate Judges' and Employees' Retirement Fund Statement of Operations for the year ending December 31, 2001. All in favor

Unanimous Decision

17. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES' AND EMPLOYEES' RETIREMENT FUND BALANCE SHEET AS OF DECEMBER 31, 2011 Mr. Luciano moved, seconded by Mr. Poulin to approve the Probate Judges' and Employees' Retirement Fund Balance Sheet as of December 31, 2011. All in favor

Unanimous Decision

18. REQUEST COMMISSION CONSIDERATION OF THE MARCH 28, 2012 RECOMMENDATIONS RECEIVED FROM ITS SUBCOMMITTEE ON PURCHASE OF SERVICE AND RELATED MATTERS Mr. Luciano moved, seconded by Mr. Coffey to approve the recommendations received from its Subcommittee on Purchase of Service and Relate Matters. Mr. Greatorex moved, seconded by Mr. Luciano to table item #4 on the Subcommittee Purchase matters.

19. HEARING ON REMAND FROM THE COURT TO CONSIDER THE SOLE ISSUE OF WHETHER PRIOR TO 1992 DANIEL MICARI WAS GIVEN NOTICE THAT THERE WAS AN OPPORTUNITY TO SEEK SERVICE CREDIT FOR EMPLOYMENT WITH ANOTHER STATE. A hearing was conducted on the sole issue of whether Mr. Micari carried his burden to show that he did not have notice of the opportunity to receive credit for his employment service in another State prior to November 1992.

By way of background, in February 2009 Mr. Micari made a request underConnecticut General Statutes, Section 5-192(h) to obtain retirement credit for his 1986. Section 5-192(h) requires the state in which the Tier II member rendered prior service must have similar retirement credit provisions for former State of Connecticut employees. His request was referred to the Commission's Subcommittee on Purchase of Service and Related Matters (Subcommittee).

At its April 30, 2009 meeting, the Subcommittee considered his claim and recommended its denial, finding that his MSERS service did not meet the Commission's established criterion for similarity. On May 21, 2009, the Commission unanimously adopted the recommendation of its Subcommittee to deny his request. A hearing before the Commission was scheduled under Connecticut General Statutes, Section 5-155a(g) on July 15, 2010.

The Trustees determined that since November 1992 when the Commission established its criterion for similarity there have been no plan provisions in MSERS that would allow a member to obtain prior Connecticut state employment; therefore the MSERS provisions do not meet the criteria established by the Commission for establishing the similarity required by Connecticut General Statutes, Section 5-192(h). His claim was denied and a declaratory ruling was issued. Mr. Micari filed an administrative appeal in Superior Court.

The Superior Court remanded the appeal back to the Commission for a hearing with regard to the sole issue of notice. Mr. Micari noted that at least one individual had applied for the same MSERS credit in 1987 and had received this credit as his application was made prior to 1992. Mr. Micari argues that he never received notice of the opportunity and had he known about this opportunity for credit from the date of his hire in 1986 to November 1992 when the criteria were adopted he would have applied for and received the credit. Judge Levine remanded the issue (did Mr. Micari have notice of this opportunity prior to November 1992) back to the Commission for a hearing as he believed that the record was inadequate in this area.

Attorney Mark Mercier represented Mr. Micari at the hearing. Mr. Micari testified on his own behalf and also had three former human resource personnel testify on his behalf: Mr. Gordon Bell, Ms. Carol Sullivan and Ms. Diane Hoffman all of whom formerly worked for DMR (now DDS). The witnesses testified that they were not aware of this credit opportunity for Tier II members and that Mr. Micari had not asked them about this opportunity from date of hire to November 1992. Mr. Micari and his witnesses were examined by the Division Counsel and Trustees with regard to their testimony.

The Retirement Services Division entered ten (10) exhibits into the record and presented one witness, Jeanne Kopek, Assistant Director for the Retirement Services Division. Ms. Kopek testified that the 1991 Tier II Summary Plan Description(SPD) was distributed to employees by being sent to employee's home address andthis SPD specifically has a section dealing with the issue of "service with otherstates."Attorney Mercier made a closing argument.

Questions were raised by the Commission with regard to Mr. Micari's receipt of his MSERS contributions but it was determined that if that was an issue, it would bedealt with separately at a later time and the sole issue before the Commission was whether Mr. Micari overcame the presumption that he had notice of the opportunity. discuss the issue of notice and also Agenda Item #20. Division staff members Brenda Halpin, Colin Newman, Helen Kemp and Jeanne Kopek were invited to remain as a resource.
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EXECUTIVE SESSION 11:24 to 11:53

Mr. Greatorex moved, seconded by Mr. Baus to come out of Executive Session at 11:53 a.m. Ms. Yelmini moved, second by Mr. Culley to find that Mr. Micari had notice of the opportunity to receive credit for his employment service in another State prior to November 1992. Division Counsel was instructed to draft the supplemental declaratory ruling in accordance with

20. UPDATE ON DISCUSSIONS WITH OUTSIDE LEGAL COUNSEL AS TO ISSUES, STRATEGY AND POSSIBLE ACTION ON PLAN ADMINISTRATION AND QUALIFICATION UNDER SECTIONS 401 (A) and 415 moved to go intoExecutive Session at 9:12 am. All voted in favor. Ms. Yelmini moved, seconded by Mr. Luciano moved to come out of Executive Session at 9:37 a.m. for the purpose of recording no motions were made and there was discussion of notice for overpayment pursuant to Section 415 of the IRS Code.

TABLED MATTER

21. REQUEST COMMISSION CONSIDERATION OF TABLED MATTER FROM THE FEBRUARY 15, 2012 MEETING REGARDING JASON POWELL'S REQUEST Ms. Yelmini moved, seconded by Mr. Greatorex to approve Mr. Powell's transfer from ARP to SERS Tier II Hazardous Duty. All voted in favor

Unanimous Decision

ADJOURNMENT Ms. Yelmini moved, seconded by Mr. Luciano to adjourn the meeting at 11:57 a.m. All voted in favor

__________________ _________________
Brenda K.Halpin, Director Peter R. Blum, Chairman
Retirement Services Division

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