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

May 16, 2013

TRUSTEES PRESENT
Peter R. Blum
Robert Baus
Sandra Fae Brown-Brewton
Charles Casella
Robert Coffey
Richard Cosgrove
James Dzurenda
Paul Fortier
Steve Greatorex
Sal Luciano
Claude Poulin
Linda Yelmini

TRUSTEES ABSENT
Michael Carey
Laila Mandour
Ronald McLellan

EX OFFICIO MEMBERS
Martha Carlson, Deputy Comptroller
Lee Ann Palladino, CIO, Treasurer's Office

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Natalie Braswell, Assistant State Comptroller

GUESTS
George Spurlock, CEUI
Attorney Anthony Houlden
David Leff
Attorney Lawrence Sgrignari

CALL TO ORDER
The Chairman called the meeting to order at 9:07 A.M.

CHAIRMAN'S REPORT
Chairman has some updates to report in Executive Session later in the Agenda

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

Following the close of the May 2013 retirement payroll, the Division processed 142 new retirees (117 normal, 25 disabilities). We did not have any finalizations for the month of May due to the conversion to Core-CT. The current backlog of unfinalized retirement records is approximately 12,731.

We have received 390 requests to transfer from the ARP to Hybrid. There are 93 retirees and 3 prospective members.

Pending Disability Applications as of April 30, 2013

FOR THE MONTH OF APRIL

At the present time, we are reviewing cases from February 2013. The next available meeting for scheduling is August 2013.

We are continuing to work with the City of Bridgeport Fire Department that became part of MERS in 2011. We have not received their July 1, 2012 amortization payment including the administrative fee. We are expecting word later this month on the town discussions.

Assistant Division Director, Kish Solanki and staff member Bill Cronin attended a program in the Town of Seymour this past Wednesday. The town is interested in joining CMERS the staff were available to respond to questions.

I have provided the Legal and Personnel Subcommittee with copies of the resumes and proposals that were received in response to the RFI for legal services. There were 40 submissions.

I am pleased to announce that we have hired the ten UCONN accounting students and they will begin tomorrow on the audit back log.

We have received approval on the Financial Clerk for the MERS Unit.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE APRIL 18, 2013 MINUTES A correction was made to reflect item #19 on the vote which should read Mr. Casella and Mr. Luciano voted nay which would be a "Majority Decision" this change will be reflected in the amended minutes. Following the changes Mr. Luciano moved, seconded by Mr. Casella to approve the April 18, 2013 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 Ms. Brown-Brewton 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 CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF APRIL 2013 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System Service retirements for the month of April, 2013. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF APRIL 2013 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System Disability retirements for the month of April 2013. All voted in favor

Unanimous Decision

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

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF APRIL 2013 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System Retroactive retirements for the month of April 2013. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Poulin to approve of the Municipal Retirement System retirements. All voted in favor

Unanimous Decision

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

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES FUND PERSONNEL EXPENSES FOR THE PAY PERIOD MARCH 8 THROUGH APRIL 4, 2013 Mr. Luciano moved, seconded by Ms. Yelmini to approve the Connecticut Probate Judges and Employees Fund Personnel expenses for the pay period March 8 through April 4, 2013. All voted in favor

Unanimous Decision

10. REQUEST COMMISSION ACCEPTANCE OF RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD FROM ITS MEETING ON February 22, 2013 RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM Mr. Luciano moved, seconded by Ms. Brown-Brewton to deny the recommendations of the Medical Examining Board (MEB) from its meeting on February 22, 2013 relative to applications for disability retirement received from the Municipal Employees Retirement System. All voted to deny

Unanimous decision

Mr. Luciano then moved, seconded by Ms. Brown-Brewton to conditionally approve the MEB applications from its meeting on February 22, 2013 relative to the disability retirement received from the Municipal Employees Retirement System conditionally provided that the towns submit letters to the Retirement Commission that there are no jobs available in the town for the employee. All voted in favor

Unanimous Decision

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

Majority Decision

12. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEES PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement Commission Union Trustees Per Diem and Travel expenses reimbursements. All voted in favor Mr. Poulin abstained

Majority Decision

13. REQUEST COMMISSION CONSIDERATION OF THE APRIL 19, 2013 RECOMMENDATIONS RECEIVED FROM ITS SUBCOMMITTEE ON PURCHASE OF SERVICE AND RELATED MATTERS Mr. Luciano moved, seconded by Ms. Brown-Brewton on the following items:

1. Joseph Alson (deceased) - He stated on his retirement forms that he was single, his wife says he was married. The burden is on her to prove that she was still married at the time of his retirement including marriage certificate, tax forms, etc. It is requested that Ms. Alson appear before the Retirement Commission with her documentation at a future date. All voted in favor.
Unanimous Decision

2. Sharon Brazeal - Mr. Luciano moved, seconded by Mr. Coffey to accept the recommendation of the Subcommittee with regards to the Medical Examining Board (MEB) findings to resubmit Ms. Brazeal's to the MEB for possible recertification as a service-connected disability. All voted in favor
Unanimous Decision

3. Jill Ferraiolo (deceased) - Mr. Luciano moved, seconded by Ms. Yelmini to table until the June 20, 2013 meeting of the Retirement Commission. All voted to table
Unanimous Decision

4. David Leff - Mr. Luciano moved, seconded by Mr. Casella to mark the calendar to hear Mr. Leff's appeal at the July 18, 2013 Retirement Commission meeting. All voted in favor
Unanimous Decision

5. Joseph Maturo - Ms. Brown-Brewton moved, seconded by Mr. Luciano to mark the calendar to hear Mr. Maturo's appeal at the August 15, 2013 Retirement Commission meeting. All voted in favor
Unanimous Decision

6. Lisa Maynard (deceased) - Mr. Coffey moved, seconded by Ms. Brown-Brewton to accept the recommendation of the Subcommittee to deny the request for posthumous processing of an application for non-service connected disability retirement. All voted in favor
Unanimous Decision

7. Jon Menti - Mr. Luciano moved, seconded by Mr. Casella to accept the recommendation of the Subcommittee to approve Mr. Menti's request to transfer from Tier II to Tier I and purchase all available retirement credit. All voted in favor
Unanimous Decision

8. Zhongju Zhang - Original motion by Mr. Luciano, seconded by Mr. Greatorex to accept the Subcommittee recommendation for denial of Mr. Zhang's request to rescind his transfer into the SERS Hybrid Plan and return to the Alternate Retirement Program (ARP) was denied. All voted to deny
Unanimous Decision

Mr. Luciano then moved, seconded by Mr. Greatorex to approve Mr. Zhang's request to allow him to transfer back to the ARP plan. Ms. Yelmini stated that Mr. Zhang will have to sign a letter stating that this is irrevocable. All voted in favor
Unanimous Decision

14. REQUEST COMMISSION APPROVAL OF FINAL DRAFT CONTRACT FOR CAVANAUGH MACDONALD CONSULTING, LLC FOR ACTUARIAL SERVICES ON A BIENNIAL BASIS FOR FOUR YEARS (2013-2017) FOR SERS. Mr. Luciano moved, Seconded by Mr. Casella to approve the final draft contract for Cavanaugh MacDonald Consulting, LLC for Actuarial services on a biennial basis for four years (2013-2017) for SERS with the change to include additional meetings. All voted in favor
Unanimous Decision

15. REQUEST COMMISSION APPROVAL OF FINAL DRAFT CONTRACT FOR CAVANAUGH MACDONALD CONSULTING, LLC FOR ACTUARIAL SERVICES ON A BIENNIAL BASIS FOR FOUR YEARS (2013-2017) FOR MERS. Mr. Luciano moved,
Seconded by Mr. Poulin to approve of the final draft contract for Cavanaugh MacDonald Consulting, LLC for Actuarial services on a biennial basis for four years (2013-2017) for MERS with the change to include additional meetings. All voted in favor
Unanimous Decision

EXECUTIVE SESSION

Mr. Luciano moved, seconded by Mr. Greatorex to go into Executive Session to review and discuss legal matters related to Ice Miller recommendations and other legal matters. Ms. Brenda Halpin and Ms. Natalie Braswell were invited to stay for the session.

16 (a). REQUEST COMMISSION REVIEW AND DISCUSSION OF THE LEGAL MATTER RELATED TO ICE MILLER RECOMMENDATIONS - Discussion was held on this matter. The motion was made to report out after the Executive Session.

16 (b). COMMISSION DISCUSSION REGARDING THE BOUCHARD CASE
No motion was made on this item.

A motion was made by Mr. Fortier and seconded by Ms. Yelmini to come out of Executive Session at 11:10 a.m.

A motion was made Mr. Poulin and seconded by Mr. Fortier to modify the Ice Miller memorandum to the Internal Revenue Service regarding the Department of Correction review. All voted in favor

Unanimous Decision

A letter was provided to the Commission members from Erik Neuendorf regarding the Section 415 limitations. The letter contains multiple questions that Mr. Neuendorf would like addressed. The Commission members have requested that the Division provide a response to him.

ADJOURNMENT
Mr. Greatorex moved, seconded by Ms. Brown-Brewton to adjourn the meeting at 11:15 a.m. All voted in favor

Unanimous Decision

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