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

December 15, 2011

TRUSTEES PRESENT
Peter R. Blum, Chair
Bob Baus
Charles Casella
Thomas Culley
Michael Carey
Claude Poulin
Sal Luciano
Steve Greatorex
Sandra Fae Brown-Brewton
James Dzurenda
Robert Coffey
Richard Cosgrove
Paul Fortier
Ronald McLellan
Linda Yelmini

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
Deputy Treasurer Jonathan Harris
Brenda Halpin, Director, Retirement Services Division
Attorney Helen Kemp, Asst. Director and Division Counsel, Retirement Services Div.
Jeanne Kopek, Asst. Director, Retirement Services Division
Colin Newman, Asst. Director, Retirement Services Division
Attorney Natalie Braswell, General Counsel to the State Comptroller
Christine Shaw, Office of the Treasurer
David Rivera, Office of the Treasurer

GUESTS
George Spurlock, CEIU

CALL TO ORDER
The Chairman called the meeting to order at 9:12 am
Holiday greetings to the Commission members and staff in the room, including a Happy New Year.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

Following the close of the December 2011 retirement payroll, the current backlog of retirement records that have not been finalized is approximately 13,143. The Division processed 56 new retirees to the payroll (40 normal, 16 disabilities). Finalizations for the month were 81.

Pending Disability Applications as of November 30, 2011

For the month of November

We are reviewing December 2011 cases. The next available meeting for scheduling is April 2012.

The 2011 Benefits Statements have been mailed.

There is one change on the subcommittee report for the Investment Subcommittee there is a meeting scheduled for January 11th at 2:00 p.m. There will be a discussion on a potential contract with Morningstar to design a group of new model portfolios for the plans.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE NOVEMBER 17, 2011 MINUTES Mr. Luciano moved, seconded by Mr. Poulin to approve the November 17, 2011 minutes. All voted in favor

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Carey 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 NOVEMBER 2011 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Service retirements for the month of November 2011. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF NOVEMBER 2011 Mr. Luciano moved, seconded by Mr. Poulinto approve the State Employees Retirement System Voluntary Pending Disability retirements for the month of November 2011. All voted in favor

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF NOVEMBER 2011 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Disability retirements for the month of November 2011. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF NOVEMBER 2011 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Retroactive retirements for the month of November 2011.
All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS FOR THE MONTH OF NOVEMBER Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut Probate Judges and Employees Retirement System retirements for the month of November 2011.All voted in favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH OF NOVEMBER 2011. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Probate Judges and Employees Retirement Fund Personal Expenses for the month of November 2011. All voted in favor

Unanimous Decision

9. 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

10. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF NOVEMBER 2011 Mr. 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 November 2011.All voted in favorMr. Baus abstained

Majority Decision

11. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF NOVEMBER 2011 Mr. Luciano moved, seconded by Mr. Greatorex approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel Expenses Reimbursements for the month of November 2011.All voted in favor Mr. Poulin abstained

Majority Decision

12. REQUEST COMMISSION REVIEW OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2011 No motion needed

13. REQUEST COMMISISON REVIEW OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2011 No motion needed

14. REQUEST COMMISSION REVIEW OF THE GENERAL ASSEMBLY PENSION FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2011 No Motion needed

15. REQUEST COMMISSION REVIEW OF THE GENERAL ASSEMBLY PENSION FUND BALANCE AS OF JUNE 30, 2011 No Motion needed

16. REQUEST COMMISSION REVIEW OF THE STATE ATTORNEYS' RETIREMENT FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2011 No Motion needed

17. REQUEST COMMISSION REVIEW OF THE STATE ATTORNEYS' RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2011 No Motion needed

18. REQUEST COMMISSION REVIEW OF THE PUBLIC DEFENDERS' RETIREMENT FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2011 No Motion needed

19. REQUEST COMMISSION REVIEW OF THE PUBLIC DEFENDERS' RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2011 No Motion needed

20. REQUEST COMMISSION REVIEW OF THE STATE EMPLOYEES RETIREMENT SYSTEM STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2011 No Motion needed

21. REQUEST COMMISSION REVIEW OF THE STATE EMPLOYEES RETIREMENT SYSTEM BALANCE SHEET AS OF JUNE 30, 2011 Mr. Greatorex had several questions about the balance sheet, including questions concerning the $97 million dollars spent in interest on unfinalized retirements. This is a perennial problem, how can the Commission assist the Retirement Division staff in reducing the amount of unfinalized retirements (13,143)? Is there a need to go to the Legislature? What is the Retirement Commission fiduciary responsibility? Ms. Halpin and Deputy Comptroller Martha Carlson addressed this issue with the Commission and some of the plans that are being discussed to eliminate the backlog, starting in January 2012. It is a priority. Ms. Palladino gave the prospective of the Treasurer's Office and the impact it has on the fund. Mr. Blum added that the Commission should seek an opinion from the Attorney General on what the Retirement Commission could do to assist. Attorney Helen Kemp was asked to write a letter to the Attorney Generals office to seek an opinion. NO MOTION was made

22. REQUEST COMMISSION DISCUSSION ON THE IMPLEMENTATION OF THE HYBRID PLAN Implementation of both Tier III and the Hybrid Plan are planned to begin in early January. The Division is completing the process of creating new enrollment forms and online Summary Plan Descriptions for the new plans. Information will be provided to all state agencies for the enrollment of individuals employed since July 1, 2011. For non-higher education employees, the Division will identify new employees and change their payroll retirement plan coding through the CORE system to reflect Tier III membership. Agencies will be asked to have these employees complete the new enrollment forms. For higher education agencies and their employees an additional period of time will be allotted for such employees to make their irrevocable retirement plan choice. It is anticipated that the administration of the ARP to Hybrid Plan transfer will begin after the new enrollment process is complete. The Division has not yet received the new actuarial cost tables for the past service purchase.

23. REQUEST COMMISSION ACCEPTANCE OF THE RECOMMENDATION OF THE ACTUARIAL SUBCOMMITTEE TO ACCEPT THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM "ROLL FORWARD" VALUATION Mr. Poulin moved, seconded by Mr. Baus to accept the recommendation of the Actuarial Subcommittee to accept the Municipal Employees Retirement System "Roll Forward" valuation. All voted in favor

Unanimous Decision

24. REQUEST COMMISSION ACCEPTANCE OF THE RECOMMENDATION OF THE ACTUARIAL SUBCOMMITTEE TO ACCEPT THE POLICE AND FIRE SURVIVORS' BENEFIT FUND "ROLL FORWARD" VALUATION Mr. Poulin moved, seconded by Mr. Baus to accept the recommendation of the Actuarial Subcommittee to accept the Police and Fire Survivors Benefit Fund "Roll Forward" valuation. All voted in favor

Unanimous Decision

25. REQUEST COMMISSION RECOMMENDATION OF THE ACTUARIAL SUBCOMMITTEE APPROVAL OF THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT FUND ADMINISTRATIVE RATE AND POLICE AND FIRE SURVIVORS' BENEFIT FUND ADMINISTRATIVE RATE (for FY 2013) Ms. Fae Brown-Brewton moved, seconded by Mr. Greatorex to approve the recommendation of the Actuarial Subcommittee to approve the Connecticut Municipal Employees Retirement Fund Administrative Rate and Police and Fire Survivors' Benefit Fund Administrative Rate of FY 2013. Mr. Baus, Mr. Culley, Mr. Carey, Mr. Poulin, Mr. Luciano, Mr. Greatorex, Ms. Brown-Brewton, Mr. Dzurenda, Mr. Coffey, Mr. Cosgrove, Mr. Fortier, Mr. McLellan, Ms. Yelmini voted YES Mr. Casella voted NO

Majority Decision

26. REQUEST COMMISSION DISCUSSION OF EXECUTIVE SESSION PROCEDURES IN REFERENCE TO THE NOVEMBER RETIREMENT COMMISSION MEETING NULL and VOID issue following the opinion from the Attorney General's Office via letter.

ADJOURNMENT

Mr. Greatorex moved, seconded by Mr. Carey to adjourn the meeting at 10:30 am. All voted in favor

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