Retirement Division June 17, 2010 MINUTES of the Meeting of the Retirement Commission

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

June 17, 2010

TRUSTEES PRESENT
Peter R. Blum, Chair
Bob Baus
Charles Casella
Thomas Culley
Stephen Caliendo
Claude Poulin
James Dzurenda
Linda Yelmini
Steve Greatorex
Sandra Fae Brown-Brewton
Robert Coffey
Richard Cosgrove
Ron McLellan

For the record: Sal Luciano was absent due to an accident on I 84

OTHERS PRESENT
Mark Ojakian, Deputy Comptroller and Division Director
Craig Henrici, Counsel to the State Comptroller
Helen Kemp, Asst. Director and Division Attorney, Retirement Services
Jeanne Kopek, Asst. Director Retirement Services
Colin Newman, Asst. Director Retirement Services
Peggy Gray, Executive Assistant Retirement Services

GUESTS
George Spurlock, CEIU
Dominic Cutaia, Manchester, Union
Tom Landry, Weston, Management

CALL TO ORDER

The Chairman called the meeting to order at 9:08 AM

CHAIRMAN'S REPORT

There really isn't anything to report at this time.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

As of May 31, 2010 we received 35 new applications, 426 are waiting for documentation. We denied 198 for a total pending of 659.

For the month of May we received 15 applications, placed 27 on the agenda and 19 were approved.

We are now scheduling cases for November. The Comptroller has also been in contact with Dr. Cato Laurencin to develop a memo of understanding.

Back log or Unfinalized Retirement Records is as follows. At the close of the June 2010 Retirement Payroll, the current backlog of unfinalized retirement records is approximately 10, 638. The Division processed 117 new retirees to the payroll ( 100 normal and 17 disabilities. Finalizations for the month were 73.

I would just like folks to know that I am taking some time off and the day to day operations are being handled by the Assistant Directors. Jeanne Kopek is taking care of the administrative day to day operations. The staff is doing a great job.

Ms. Yelmini asked about the 120 day employees for the Retirement Division. The Deputy Comptroller stated that the requests have been made, but has heard nothing, so the answer appears to be that we will not be given extra staff in Retirement.

Ms. Yelmini also stated that one of the problems with getting doctors for the Medical Examining Board may be that the doctors may be in a bargaining unit.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE MAY 20, 2010 MINUTES.
Mr. Caliendo moved, seconded by Mr. Cosgrove to approve the minutes of May 20, 2010 with the correction to reflect that Mr. Caliendo attended the meeting. Mr. Baus, Mr. Caliendo, Ms. Brown-Brewton, Mr. Coffey, Mr. Cosgrove, Mr. Culley, Mr. Dzurenda, Mr. Greatorex, Mr. McLellan, Mr. Poulin, Ms. Yelmini voted to accept the minutes. Mr. Casella opposed.

Majority Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM EXPENSES.
Mr. Baus moved, seconded by Ms. Yelmini to approve the State Employees Retirement Commission Chairman's per diem expenses.

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF MAY 2010.
Ms. Yelmini moved, seconded by Mr. Poulin to approve the State Employees Retirement System Service Retirements for the month of May, 2010. All approved

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF MAY 2010.
Ms. Yelmini moved, seconded by Mr. Poulin to approved the State Employees Retirement System Voluntary Pending Disability Retirements for the month of May 2010. All voted in Favor.

Unanimous Decision

5. REQUEST COMMISSION ACCEPTANCE OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF MAY AS APPROVED BY THE MEDICIAL EXAMINING BOARD ON APRIL 30, 2010.
Ms. Yelmini moved, seconded by Mr. Poulin to accept the State Employees Retirement Disability Retirements for the month of may 2010 as approved by the Medical Examining Board on April 30, 2010. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF MAY 2010.
Ms. Yelmini moved, seconded by Mr. Poulin to approve the Pre Retirement Death Benefit Retirements for the month of May 2010. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE RETROACTIVE RETIREMENTS FOR THE MONTH OF MAY 2010.
Ms Yelmini moved, seconded by Mr. Poulin to approve the Retroactive Retirements for the month of May 2010. 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 MAY 2010. Ms. Yelmini
moved, seconded by Mr. Poulin to approve the Connecticut Probate Judges and Employees Retirement Fund personal expenses for the month of May 2010. All voted in favor.

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SERVICE RETIREMENTS FOR MAY 2010.
Ms.Yelmini moved, seconded by Mr. Baus to approve the Connecticut Probate Judges and Employees Retirement Service Retirements for May 2010. All voted in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM RETIREMENTS FOR MAY 2010.
Ms. Yelmini moved, seconded by Mr. Baus to approve the Judges, Family Support Magistrates and Compensation Commissioners Retirement System Retirements for May 2010 All voted in favor.

Unanimous Decision

11. REQUEST COMMISSION ACCEPTANCE OF RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD FROM IT'S MEETING ON MAY 21, 2010 RELATIVE TO APPLICATIONS FROM DISABILITY RETIREMENTS RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM.
Ms. Yelmini moved, seconded by Mr. Greatorex to accept the recommendations of the Medical Examining Board from it's meeting on May 21, 2010 relative to applications from Disability Retirements received from the Municipal Employees Retirement System. All voted in favor.

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS. Ms. Yelmini moved, seconded by Mr. Greatorex to approve of the Municipal Retirement System Retirements. All voted in favor.

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION'S MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF MAY 2010.
Ms. Yelmini move, seconded by Mr. Greatorex to approve The State Employees Retirement Commission's Management Trustee's per diem and travel expenses for the month of May 2010. All voted in favor.
Mr. Baus abstained

Majority Decision

14. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION'S UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF MAY 2010.
Ms. Brown-Brewton moved, seconded by Mr. Greatorex to Approve the State Employees Retirement Commission's Union Trustee's per diem and travel expenses reimbursements for the month of May 2010.
Mr. Poulin abstained.

Majority Decision

15. REQUEST COMMISSION ACCEPTANCE OF THE ACTUARIAL VALUATION OF THE PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM FOR CALENDAR YEAR ENDING DECEMBER
31, 2009. Mr, Baus moved, seconded by Mr. Poulin to accept the Actuarial Valuation of the Probate Judges and Employees Retirement System for calendar year ending December 31, 2009 All voted in favor.

Unanimous Decision

16. DISCUSSION - SETTLEMENT ISSUES RE: SEC. 5-142A OVERPAYMENT ITEM (COZZOLINO)
Mr. Baus moved, seconded by Mr. Poulin to go into Executive Session to discuss this matter. All voted in favor.

EXECUTIVE SESSION WAS CALLED AT 9:24 AM

EXECUTIVE SESSION ENDED AT 9:58 AM
Mr. Baus moved, seconded by Mr. Greatorex, to come out of executive session at 9:58 a.m. Unanimous decision.

Ms. Yelmini moved that the Division Counsel be authorized to settle or resolve the Cozzolino matter in accordance with the parameters discussed in executive session. Ms. Brown-Brewton,second. Mr. Dzurenda opposed.

Majority decision.

ADDENDUM ITEM: REVIEW AND APPROVE SELECTION OF ADDITIONAL MANAGER OR MANAGERS FOR THE STABLE VALUE FUND.
Peggy Haering reported on the present status of the Stable Value Fund. The fund's current market to book ration is 101.90%. ING calculated the crediting rate for the Stable Value Fund for the period from July 1, 2010 to June 30, 2011 at 3.82% The formula was determined in accordance with the contractual formula. The Investment Subcommittee at its meeting on June 17, 2010 discussed the qualifications of two sub-advisors to manage a portion of the Stable Value Fund assets. The Investment Subcommittee is awaiting further information from its consultant and expects to have a final recommendation for the Commission in time for the August 19, 2010 meeting.

17. REQUEST COMMISSION APPOINTMENT OF MUNICIPAL LIAISON FOR CMERS IN ACCORDANCE WITH CGS SECTION 1-155(a)(4)(A) TO FILL THE VACANCY LEFT BY THE RETIREMENT OF JEFFREY
SMITH.
The Commission came out of executive session at 10:15 a.m. The Commission noted that although traditionally only one liaison has been appointed by the Commission, due to the diverse issues facing both the employee and employer side of the municipal employee retirement system, and in keeping with the statutory make-up of the Commission which consists of six trustees representing employees who are appointed by the bargaining agents and six management trustees, the Commission believed it both necessary and appropriate to appoint two liaisons, one representing employers and one representing employees, as municipal liaison to the Commission.

Ms. Yelmini moved, Mr. Casella second by to appoint Thomas Landry (Weston) as the non-voting MERS Municipal Liaison (management-side) and Mr. Dominic M. Cutaia (UPFFAC) as the non-voting MERS Municipal Liaison. (employee side).

THE COMMISSION WENT INTO EXECUTIVE SESSION AT 10:20 AM TO DISCUSS PERSONEL MATTERS BEFORE THE COMMISSION.

At 10:34 Ms Brown-Brewton moved, seconded by Mr. Greatorex to resume the Commission meeting. All voted in favor

Unanimous Decision

Ms. Brown-Brewton moved, seconded by Mr. Greatores that letters be sent to Governor M. Jodi Rell as follows:

1. It is the will of the Commission to appoint both Mr. Landry and Mr. Cutaia as MERS liasions to the Retirement Commission.

2. A recommendation by Deputy Comptroller and Divison Director Mark Ojakian to appoint Mr. Peter R. Blum for another term as Chairman of the State Employees Retirement Commission.

ADJOURNMENT

Mr. Casella moved, seconded by Mr. Baus to adjourn the meeting at 10:37. All voted in favor.

_____________________________
Peter R. Blum, Chairman

__________________________________
Mark E. Ojakian, Deputy Comptroller and Director ofRetirement Services

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