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

February 19, 2009

TRUSTEES PRESENT
Peter R. Blum, Chairman (teleconferenced)
Bob Baus
Steve Caliendo
Charles Casella
Robert Coffey
Richard Cosgrove
Thomas Culley
Steve Greatorex
Sal Luciano
Mary Marcial
Ronald McLellan
Claude Poulin
Linda Yelmini

ABSENT
Sandra Brown-Brewton
Paul Fortier
Jeffrey Smith, Municipal Liaison

OTHERS PRESENT
Mark Ojakian, Deputy Comptroller, Retirement Services Division
Helen Kemp, Assistant Director, Counsel for the Retirement Services Division
Joseph Lantieri, Retirement Services Division, Disability Unit
Marilyn Rodriguez, Secretary II, Retirement Services Division
Peggy Gray, Executive Assistant, Retirement Services Division
Karen Buffkin, Counsel for the State Comptroller


GUESTS
George Spurlock

CALL TO ORDER

The Deputy Comptroller called the meeting to order at 9:10 a.m.

CHAIRMAN'S REPORT

Kind thoughts on recovery, thanked trustees for fruit arrangement.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORT

Administrative

The Director reported that the current backlog of unfinalized State Employees Retirement System (SERS) accounts is approximately 6,528 with 92 new retirees for the month consisting of 71 normal retirements and 21 disability retirements; 106 applications were finalized for the month. new disability applications were received and applications were put on the Medical Examining Board agenda; disability applications were approved. Currently, there are disability applications pending, incomplete applications, denied applications with a total of pending / incomplete disability applications as of January 2009.

The Director reported that the current backlog of Connecticut Municipal Employees Retirement System (CMERS) accounts to be recalculated is approximately 3,767 applications having recalculated 101 applications in January 2009. The CMERS unit has completed review of all retirements applications submitted for the time frame from January 1 to December 31, 2000.

Subcommittee Reports

Mr. Ojakian stated that there were no updates to any of the subcommittee reports except for the actuarial subcommittee report which was as follows:

Actuarial Subcommittee (MERS): The Actuarial Subcommittee met extensively since the Commission's January 8, 2009 meeting to discuss with Buck (the MERS actuary) the MERS and P&FSBF valuations and experience studies. The valuations on the agenda today are those which are being recommended by the Actuarial Subcommittee to the Commission for its approval.
Actuarial Subcommittee (RFP) Mr. Ojakian also gave an update as to the status of the Actuarial RFP. After discussion, the Commission requested a memorandum of understanding from the Comptroller with regard to an understanding concerning the successful bidder and the work to be done at the request of the Comptroller. Mr. Ojakian stated one would be provided to Commission members.


1. REQUEST COMMISSION APPROVAL OF THE JANUARY 8, 2009 MINUTES

Mr. Luciano moved, seconded by Ms. Yelmini to approve the January 8, 2009 minutes as amended. All voted in favor.

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM AND TRAVEL EXPENSE REIMBURSEMENT

Mr. Luciano moved, seconded by Mr. Casella to approve the State Employees Retirement Commission Chairman's per diem and travel expenses reimbursements. All voted in favor.

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF DECEMBER 2008

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Service Retirement. All voted in favor.

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF JANUARY 2009

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Service Retirements. All voted in favor.

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF DECEMBER 2008

Mr. Luciano moved, seconded by Ms. Yelmini approve the State Employees Retirement System Voluntary Pending Disability Retirements. All voted in favor.

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF JANUARY 2009

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Voluntary Pending Disability Retirements. All voted in favor.

Unanimous Decision

7. REQUEST COMMISSION REVIEW OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF DECEMBER 2008 APPROVED BY THE MEDICAL EXAMINING BOARD AS OF NOVEMBER 30, 2008

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Disability Retirements. All voted in favor.

Unanimous Decision

8. REQUEST COMMISSION REVIEW OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF JANUARY 2009 APPROVED BY THE MEDICAL EXAMINING BOARD AS OF DECEMBER 31, 2008

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Disability Retirements. All voted in favor.

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF DECEMBER 2008

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF JANUARY 2009

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE-RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF JANUARY 2009

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM RETIREMENTS

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

14. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH OF DECEMBER 2008

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

15. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH OF JANUARY 2009

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

16. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. All voted in favor.

Unanimous Decision

17. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. Mr. Baus abstained.

Majority Decision

18. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS

Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System retroactive retirements. Claude Poulin abstained.

Majority Decision

19. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT FUND ADMINISTRATIVE FUND RATE OF ADMINISTRATIVE EXPENSE (FY 2009)

The administrative assessment fee for the Connecticut Municipal Employees Retirement System was set at $100 per participant for FY09. Mr. Luciano moved, seconded by Ms. Yelmini. All voted in favor.

Unanimous Decision

20. APPEARANCE OF PHILIP BONANNO, CONSULTING ACTUARY, BUCK CONSULTANTS, TO REPORT ON THE RESULTS OF THE MUNICPAL EMPLOYEES RETIREMENT SYSTEM VALUATION AS OF JUNE 30, 2008

Phil Bonnano and Janet Cranna from Buck Consultants spoke to, and answered questions from, Commission members concerning the June 30, 2008 MERS valuation. After discussion, Mr. Baus moved, seconded by Mr. Poulin to accept the report on the results of the Municipal Employees Retirement System Valuation as of June 30, 2008. All voted in favor.

21. APPERANCE OF PHILIP BONANNO , CONSULTI NG ACTUARY, BUCK CONSULTANTS, TO REPORT ON THE RESULTS OF THE POLICE AND FIRE SURVIVORS' BENEFIT FUND VALUATION AS OF JUNE 30 2008

Phil Bonnano and Janet Cranna from Buck Consultants spoke to, and answered questions from, Commission members concerning the June 30, 2008 P&FBSF valuation. After discussion, Mr. Baus moved, seconded by Mr. Poulin to accept the report on the results of the Municipal Employees Retirement System Valuation as of June 30, 2008. All voted in favor.

22. APPEARANCE OF PHILIP BONANNO, CONSULTING ACTUARY, BUCK CONSULTANTS, TO REPORT ON THE POLICEMEN & FIREMEN SURVIVORS' BENEFIT FUND EXPERIENCE INVESTIGATION

The P&FSBF experienced study was provided to Commission members for informational purposes. No action was necessary by the Commission.

23. APPEARANCE OF PHILIP BONANNO, CONSULTING ACTUARY, BUCK CONSULTANTS, TO REPORT ON THE MUNICPAL EMPLOYEES RETIREMENT SYSTEM EXPERIENCE INVESTIGATION

The MERS experience study was provided to Commission members for informational purposes. No action was necessary by the Commission.

At 10:28 a.m., Ms. Yelmini moved, seconded by Luciano moved to enter into Executive Session to discuss settlement and negotiation strategy with regard to the Longley litigation matters. Attorney Michael Rose, the Commission's attorney in these matters, was invited to attend. Retirement Division staff did not attend the executive session. All voted in favor.

Unanimous Decision

Mr. Casella moved, seconded by Mr. McClellan to go out of Executive session at 11:25 a.m. All
voted in favor.

Unanimous Decision

ADDENDUM ITEM #1

REQUEST COMMISSION ACCEPTANCE OF RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD FROM ITS MEETINGS ON January 30, 2009 RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM.

Mr. Luciano moved, seconded by Ms. Yelmini to approve the Stable Value Fund Interest Rate. All voted in favor.

Unanimous Decision

ADDENDUM ITEM #2

DISCUSSION ON AUDIT APPLICATIONS AND THE 1% HOLD BACK

Charles Casella would like the Division to prepare an analysis on when the Hold Back started and why it still continues.

DISCUSSION WITH REGARD TO EVALUATION OF PAST ERIPS

Mr. Casella would like a cost analysis of RIPs from the Actuary on how much it has cost in the past, effect on the fund and whether the Commission should support it or not. This has been done by OFA and the information will be provided to the Commission members.

DISCUSSION OF ING AND INVESTMENT FUND - POTENTIAL OPTIONS

Was referred to the Investment Subcommittee

ADJOURNMENT

Ms. Yelmini moved, seconded by Mr. Greatorex to adjourn the meeting. All voted in favor.

The Chairman adjourned the meeting at 11:50 a.m.

______________________________
Peter R. Blum. Chairman
State Employees Retirement Commission

_________________________________
Mark Ojakian, Director

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