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

November 18, 2010

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

TRUSTEES ABSENT

Paul Fortier

MUNICIPAL LIASONS

Thomas Landry

OTHERS PRESENT

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

GUESTS

George Spurlock
Greg Franklin
John Garrett
Ed Koebel
Holly Williams
Jennifer Proto
Christine Shaw
Karen Nolen

CALL TO ORDER

The Chairman called the meeting to order at 9:09 AM.

CHAIRMAN'S REPORT

The Chair has received and accepted the resignation of Municipal Liaison Dominic Cutaia. The Chair and Attorney Helen Kemp sat down with the Auditors for the exit interview. The report essentially remains as written and approved by the Commissioners. The 2011 meeting dates of the Retirement Commission are presented for the Commission's review. The calendar will be placed on the December agenda for approval.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

Following the close of the October 2010 Retirement Payroll, the current backlog of unfinalized retirement records is approximately 10,846. The Retirement Division processed 70 new retirees to the payroll (61 normal, 9 disabilities). Finalizations for the month were 86.

As of October 31, 2010 the Division had 74 new disability applications pending. 253 are waiting for further documentation and 124 are scheduled for upcoming MEB meetings. For the month of October, 27 applications were received, 24 applications were placed on the agenda and 9 applications were approved. At the present time we are reviewing November 2010 cases in chronological order. The next available meeting for scheduling is May 2011.

The one remaining issue in the Auditors Report for the Retirement Division was lack of written, updated, procedures. We are aware of this issue and strive to update our procedures as time and workload allow.

There was an issue with receiving the Actuarial Valuation Reports from Cavanaugh Macdonald for today's meeting. John Garrett and Ed Koebel are here to give the Commission an oral presentation and if the reports arrive during the meeting they will be brought up to the Commission members.

And finally, we have passed out to each Commission member a copy of the Longley Adjustment Update.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE OCTOBER 21, 2010
MINUTES.
Mr. Luciano moved, seconded by Ms. Yelmini to approve the minutes of the October 21, 2010 minutes. All voted in favor

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION'S CHAIRMAN'S PER DIEM EXPENSES REIMBURSEMENTS. Mr. Luciano moved, seconded by Mr. Cosgrove to approve the State Employees Retirement Commission's Chairman's Per Diem expenses and reimbursements. All voted in favor

Unanimous Decision

3. REQUEST APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF OCTOBER 2010. Mr. Luciano moved, seconded by Mr. Cosgrove to approve the State Employees Retirement System retirements for the month of October 2010. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEE RETIREMENT SYSTEMS VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF OCTOBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Voluntary Pending Disability Retirements for the month of October 2010. All voted in favor

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF OCTOBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Disability Retirements for the month of October 2010. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF OCTOBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Retroactive Retirements for the month of October 2010. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF SEPTEMBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Pre Retirement Death Benefit Retirements for the month of September 2010. All voted in favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF OCTOBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement System Pre Retirement Death Benefit Retirements for the month of October 2010. All voted in favor

Unanimous Decision

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

Unanimous Decision

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

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH OF OCTOBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the Connecticut Probate Judges and Employees Retirement Fund Personal Expenses for the month of October 2010. All voted in favor

Unanimous Decision

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

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR OCTOBER 2010.
Mr. Luciano moved, seconded by Mr. Cosgrove to approve the State Employees Retirement Commission Management Trustee's Per Diem and Travel Expenses Reimbursements for October 2010. All voted in favor Mr. Baus abstained

Majority Decision

14. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR NOVEMBER 2010. Mr. Luciano moved, seconded by Ms. Yelmini to approve the State Employees Retirement Commission Management Trustee's Per Diem and Travel Expenses Reimbursements for November 2010. All voted in favor Mr. Baus abstained

Majority Decision

15. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR NOVEMBER 2010. Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employeess Retirement Commission Union Trustee's Per Diem and Travel Expenses Reimbursements for November 2010. All voted in favor Mr. Poulin abstained

Majority Decision

16. REQUEST COMMISSION APPROVAL FOR THE STATE EMPLOYEES RETIREMENT COMMISSION TRUSTEE CHARLES CASELLA'S EXPENSES REIMBURSEMENTS. Mr. Luciano moved, seconded by Mr.
Greatorex to approve the State Employees Retirement Commission Trustee Charles Casella's Expenses Reimbursements. All vote in favor Mr. Casella abstained

Majority Decision

17. STATE EMPLOYEES RETIREMENT SYSTEM BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2010. Mr. Luciano moved, seconded by Ms. Yelmini to accept the
Statement of Operations for Fiscal Year Ending June 30, 2010. Mr. Greatorex would like to point out on the balance sheet the amount under liability of interest payable, if this is due to finalizations and Longley. A lot of money is being spent because it is just impossible to finalize retirements any faster. All voted in favor

Unanimous Decision

18. PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2010. Mr. Luciano moved, seconded by Ms. Yelmini
to accept the Probate Judges and Employees Retirement System Balance Sheet and Statement of Operations for Fiscal Year Ending June 30, 2010. All voted in favor

Unanimous Decision

19. JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2010. Mr. Luciano moved, seconded by Ms. Yelmini to accept the Judges, Family Support Magistrates and Compensation Commissioners Retirement System Balance Sheet and Statement of Operations for Fiscal Year Ending June 30, 2010. All voted in favor

Unanimous Decision

20. REQUEST COMMISSION APPROVAL OF THE PROPOSED DECLARATORY RULING IN THE MATTER OF TIMOTHY WENTZELL TO BE ISSUED PRIOR TO JANUARY 1, 2011 IN ACCORDANCE WITH SECTION 5-155-1(e)(1)(A) OF THE REGULATIONS OF CONNECTICUT STATE AGENCIES
(executive session may be required for discussion)

The Division Counsel noted that the draft declaratory ruling given to the trustees had been revised since was handed out pursuant to her conversations with Chair Peter Blum. The Chair asked Trustees who had questions, comments or suggestions on the draft ruling to contact the Division Counsel so she could answer those questions and incorporated relevant suggestions and comments into the final document. The Chair suggested that this item be tabled until the Commission's December 16, 2010 meeting. The Chair noted that the ruling must be issued by the end of December 2010.

Action: Mr. Baus moved; Ms. Yelmini second to table action on this item until the Commission's December 2010 meeting.

Unanimous Decision

21. DISCUSSION -SETTLEMENT/ SETTLEMENT ISSUES IN RE: HHD CV10-5034551-s -DICKMAN
V .STATE EMPLOYEES RETIREMENT COMMISSION - EXECUTIVE SESSION

A motion was made by Mr. Luciano, second by Ms. Yelmini to go into executive session to discuss the above legal action and to invite Acting Division Director, Division Counsel and Counsel to the Comptroller to remain. Unanimous decision.

Mr. Luciano moved, seconded by Mr. Baus to come out of executive session at approximately 9:40 a.m.

Unanimous Decision

22. STATUS - PROCUREMENT OF LEGAL SERVICES FOR THE PURPOSE OF IMPLEMENTING THE SEPTEMBER 28, 2010 SEBAC PENSION GRIEVANCE AWARD

At its October 21, 2010 meeting, the Commission voted to allow the Office of the State Comptroller to secure outside representation for legal services in matters regarding the above Award, the Alternate Retirement Plan, the 403(b) plan and the 457 plan to be paid for out of plan assets with a report back to the Commission at the next meeting with regard to its status and subsequent Commission action as required.

Division Counsel reported that they sought a law firm that will be expected toprovide definitive answers to concerns raised by the Division, the Commission and the involved parties as to the appropriate action to be taken to administer the provisions of the SAG Award within the confines of IRS regulations pertaining to qualified retirement plans. At the time, it was intended to have a two-part process: the first - because time is of the essence - under a sole-source PSA (with limited funds of $20,000) is to provide advice with regard to the necessary action steps to implement the Award (a "game plan") with a few questions based upon plan documents to be answered by priority and the second would be a more formal RFP (and lengthy) process to implement the action steps as required if such steps involve lengthy or detailed plan amendments, a private letter ruling, etc. Three law firms with expertise in this highly complex and technical area were contacted and the firm of Robinson & Cole LLP was ultimately selected.

23. REQUEST COMMISSION ACCEPTANCE OF THE STATE EMPLOYEES RETIREMENT SYSTEM VALUATION AS OF JUNE 30, 2010.
Since the reports had not yet arrived by FedEx, John Garrett and Ed Kobel gave a brief presentation to the Commission members. Ms. Yelmini did point out that the Subcommittee had seen the entire report and the numbers had not changed. Mr. Luciano moved, seconded by Mr. Greatorex to accept the recommendations of the Subcommittee. All voted in favor

*The Reports will be sent to the Commission as soon as they arrive
from FedEx.

Unanimous Decision

24. REQUEST COMMISSION ACCEPTANCE OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM ACTUARIAL VALUATIONS OF JUNE 23, 2010. Mr.Luciano moved, seconded by Mr. Greatorex to accept the recommendations of the Subcommittee. All voted in favor

* The Reports will be sent to the Commission as soon as they arrive
from FedEx.

Unanimous Decision

ADJOURNMENT

Ms. Yelmini moved, seconded by Mr. McLellan to adjourn the meeting at 10:20 AM. All voted in favor.

___________________________
Peter R. Blum, Chair

_______________________________
Jeanne Kopek, Division Director

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