MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
55 ELM STREET
HARTFORD, CT 06106

December 19, 2013

TRUSTEES PRESENT
Peter Blum
Robert Baus
Sandra Fae Brown-Brewton
Michael Carey
Charles Casella
Robert Coffey
Richard Cosgrove
Paul Fortier
Steve Greatorex
Sal Luciano
Laila Mandour
Ronald McLellan
Claude Poulin

TRUSTEES ABSENT
James Dzurenda
Linda Yelmini

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

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Peggy Gray, Executive Secretary, Retirement Services Division
Natalie Braswell, Asst. Comptroller
Colin Newman, Asst. Director, Retirement Services Division
Nicole Dorman, Counsel to the Commission
Nancy Perrato, Court Reporter
GUESTS
Timothy O'Connor
Judith Fogg

CALL TO ORDER
The Chairman called the meeting to order at 9:10 a.m.

CHAIRMAN'S REPORT
OPM has come through with the extra money needed for the Rose Kallor contract with the assistance of Natalie and Linda. Jim Dzurenda will be stepping down next month from the Commission. A Deputy Commissioner will be taking his place. He will be introduced at the next meeting.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

Following the close of the December retirement payroll, the Division processed 129 new retirees (108 normal, 14 Disabilities, 6 Voluntary Pending, 1 Hybrid). Finalizations for the month of December were 120 (110 normal and 10 disabilities). The total number of unfinalized retirement records is approximately 12,100.

We have received a total of 980 requests to transfer from the ARP to Hybrid. Of that number 829 were transfers, 140 retirees, 9 waivers, 3 prospective. We received in 36 applications during the month.

Pending Disability Applications as of November 30, 2013
Applications preliminarily reviewed 45
Applications waiting for documentation 180
Applications scheduled: 219
Total Pending: 444

FOR THE MONTH OF NOVEMBER
Number of Applications Received 20
Number of Applications on Agenda 45
Number of Applications Approved 29

At the present time, we are reviewing cases received in this month. The next available meeting for scheduling is July 2014.

The Counseling Unit staff conducted two general retirement counseling sessions for Department of Correction (DOC) employees on December 12th. The DOC Human Resource staff and hazardous duty staff members appreciated the additional counseling session.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE NOVEMBER 21, 2013 MINUTES Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the minutes of the November 21, 2013 Commission meeting. All voted in favor

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE NOVEMBER 27, 2013 MINUTES OF THE SPECIAL MEETING Mr. Luciano moved, seconded by Mr. Poulin to approve the minutes of the Special meeting of November 27, 2013. 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 NOVEMBER 2013 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System Service retirements for the month of November 2013. 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 NOVEMBER 2013 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System Pre-Retirement Death retirements for the month of November 2013. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM VOLUNTARY PENDING RETIREMENTS FOR THE MONTH OF NOVEMBER 2013 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees System Voluntary Pending retirements for the month of November 2013. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF NOVEMBER 2013 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Employees Retirement System Retroactive retirements for the month of November 2013. All voted in favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the Municipal Retirement System retirements. 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 JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Judges, Family Support Magistrates and Compensation Commissioners Retirement System retirements. All voted in favor

Unanimous Decision

11. REQUEST COMMISSION REVIEW OF THE CONNECTICUT JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR PAY PERIODS October 4 through November 14, 2013. For Review Only

12. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEES PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the State Employees Retirement Commission Management Trustees Per Diem and Travel Expenses reimbursements. All voted in favor Mr. Baus abstained

Majority Decision

13. 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 Trustees Per Diem and Travel Expenses reimbursements. All voted in favor Mr. Poulin abstained
Majority Decision

14. REQUEST COMMISSION ACCEPTANCE OF RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD FROM ITS MEETING ON September 20, 2013 and November 22, 2013 RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM Mr. Luciano moved, seconded by Mr. Greatorex to accept the recommendations of the Medical Examining Board from its meeting on September 20, 2013 and November 22, 2013 relative to applications for disability retirement received from the Municipal Employees Retirement System. All voted in favor

Unanimous Decision

15. REQUEST COMMISSION APPROVAL OF THE RECOMMENDATIONS OF ITS OVERPAYMENT SUBCOMMITTEE ON REGULATIONS AND OVERPAYMENTS FROM ITS MEETING ON DECEMBER 4, 2013 Mr. Luciano moved, seconded by Mr. Greatorex to approve the recommendations of its Overpayment Subcommittee on Regulations and Overpayments from its meeting on December 4, 2012. All voted in favor

Unanimous Decision

16. REQUEST RECEIVED FROM THE WIDOW OF JOHN FOGG THAT THE COMMISSION REVIEW AND RECONSIDER ITS DECEMBER 20, 2012 DENIAL OF HER HUSBANDS REQUEST TO CHANGE THE RETIREMENT OPTION ELECTION FROM A STRAIGHT LIFE ANNUITY TO A PAYMENT ELECTION FORM PROVIDING HIS SPOUSE WITH A CONTINUATION OF THE RETIREMENT BENEFIT FROM SERS Mr. McLellan moved, seconded by Ms. Mandour to table this item until the Commission could speak to Dr. Woodruff later in the meeting. All voted in favor
Mr. McLellan moved, seconded by Ms. Brown-Brewton to remove this item from the table for discussion, all voted in favor
Mr. McLellan moved, seconded by Ms. Brown-Brewton moved to discuss after speaking with Dr. Woodruff. All voted in favor
Mr. McLellan moved, seconded by Mr. Casella to find a way to honor Mrs. Fogg's request to bridge her healthcare until she reaches the age of 65. Mr. Fortier voted YEAH, Mr. Baus, Ms. Brown-Brewton, Mr. Carey, Mr. Casella, Mr. Coffey, Mr. Cosgrove, Mr. Greatorex, Mr. Luciano, Ms. Mandour, Mr. McLellan, Mr. Poulin all vote NO. MOTION FAILS
Mr. Casella moved, seconded by Ms. Brown-Brewton moved to deny Mrs. Fogg's request based on the fact that the Retirement Commission had no authority to grant such a request based on information from Dr. Woodruff. All voted in favor

Unanimous Decision

17. REQUEST RECEIVED FROM TIMOTHY O'CONNOR (MERS) THAT THE COMMISSION REVIEW AND RECONSIDER ITS JULY 18, 2013 DENIAL OF REQUEST FOR WAIVER OF AN OVERPAYMENT Mr. Fortier moved, seconded by Ms. Mandour to discuss waiving the overpayment. After discussion all voted NO. Motion failed
Mr. Fortier moved, seconded by Mr. Luciano to amend the first motion and grant relief to Mr. O'Connor by accepting payments made and a one-time payment of $5000.00. All voted in favor

Unanimous Decision

18. REQUEST COMMISSION DISCUSSION AND APPROVAL OF THE CREDITED INTEREST RATE IN THE ALTERNATE RETIREMENT PLAN (ARP) TO ASSIST WITH THE DISCUSSION A PRESENTATION FROM DR. WOODRUFF, DIRECTOR OF HEALTHCARE POLICY AND BENEFITS AND PEGGY HAERING, ASST. DIRECTOR OF HEALTHCARE POLICY AND BENEFITS. Mr. Luciano moved, seconded by Mr. Greatorex to approve the recommendation of the Investment Subcommittee to reduce the minimum guarantee from 3% to 1% and to reduce the crediting rate to 2.5% effective March 1, 2014 and to notify members of the crediting rate reduction at the earliest opportunity and to authorize the Comptroller to negotiate the most advantageous contractual arrangements with ING to accomplish this. All voted in favor

Unanimous Decision

EXECUTIVE SESSION

At 10:12 a.m. Mr. Luciano moved, seconded by Mr. Greatorex to move into Executive Session for discussion of legal issues in the Leff and Micari matters with Commission Counsel Nicole Dorman. Director Brenda Halpin was invited to stay. All voted in favor

At 10:32 Mr. Luciano moved, seconded by Mr. Greatorex to move into take up the third matter, the contract for Commission Counsel. Attorney Nicole Dorman was excused.

At 10:45 Mr. Luciano moved, seconded by Mr. McLellan to return to regular session. All voted in favor. NO MOTIONS WERE MADE

ADJOURNMENT

At 10:46 Ms. Brown-Brewton moved to adjourn.

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