MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
OFFICE OF THE STATE COMPTROLLER
7TH FLOOR CONFERENCE ROOM
55 ELM STREET
HARTFORD, CT 06119
9:00 a.m.

October 16, 2014

TRUSTEES PRESENT
Peter R. Blum
Robert Baus
Sandra Fae Brown-Brewton
Michael Carey
Charles Casella
Robert Coffey
Richard Cosgrove
Paul Fortier
Steven Greatorex
Sal Luciano
Ronald McLellan
Claude Poulin
Linda Yelmini

TRUSTEES ABSENT
Laila Mandour

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

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Colin Newman, Asst. Director, Retirement Services Division
Natalie Braswell, Assistant Comptroller
Peggy Gray, Exec. Secretary, Retirement Services Division
Michael Rose, General Counsel to the Commission
Bruce Barth, Counsel to the Commission on Federal Tax Matters
Cynthia Christie, Counsel to the Commission on Federal Tax Matters
Hillary Felton-Reid, Robinson & Cole, Gov. Relations

CALL TO ORDER


The Chairman called the meeting to order at 9:08 a.m.

 

CHAIRMAN'S REPORT

The Chairman asked that it be noted that Trustee Laila Mandour is not present for the meeting and in full disclosure; her husband, Rudolph Kamm Jr. has a matter before the Commission today.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

We are still finalizing the October retirement payroll so I will be able to provide the finalized numbers next month. For the September retirement payroll we had 194 new retirees (157 normal, 13 Disabilities, 11 Voluntary Pending and 13 Hybrid).
We have received a total of 1,225 requests to transfer from the ARP to Hybrid. Of that number 986 were transfers, 226 retirees, 9 waivers, 4 prospective. We received in 16 applications during the month. Of the 986 transfers we have 537 applications waiting to be processed.
Pending Disability Applications as of September 30, 2014

Pending Applications:                                                                 195
(applications preliminarily reviewed - 47
(applications waiting for documentation -148
Applications scheduled:                                                             206
Total Pending:                                                                            401
FOR THE MONTH OF SEPTEMBER
Number of Applications Received             17
Number of Applications on Agenda          22
Number of Applications Approved            18

The next available meeting for scheduling is April 2015.

We have drafted the Scope of Work for the GASB 68 reporting and have presented it to the Actuarial Subcommittee for their review, revisions were made and are currently under review.

The training for the new Medical Examining Board doctors was held on September 29th and went very well. We will be holding another training session hopefully for three more doctors within the next few weeks. The training materials will be provided to all of the Commission members within the next few days.

The Hamden Fire Department has made an inquiry concerning membership in CMERS.


NEW MATTER

1. REQUEST COMMISSION APPROVAL OF THE SEPTEMBER 18, 2014 MINUTES. Mr.
Luciano moved, seconded by Mr. Greatorex to approve the September 18, 2014 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 Mr. Greatorex 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 SEPTEMBER 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System Service retirements for the month of September 2014. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING RETIREMENTS FOR THE MONTH OF SEPTEMBER 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees System Voluntary Pending retirements for the month of September 2014. All voted in favor

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF SEPTEMBER 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System Disability retirements for the month of September 2014. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF SEPTEMBER 2014. Mr.
Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Retroactive retirements for the month of September 2014. All voted in favor

Unanimous Decision

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

Unanimous Decision

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

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR THE PAY PERIOD AUGUST 8, 2014 THROUGH SEPTEMBER 4, 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Probate Judges and Employees Retirement Fund Personnel expenses for the pay period August 8, 2014 through September 4, 2014. All voted in favor

Unanimous Decision

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

Majority Decision

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

Majority Decision

12. a. REVIEW OF BILLING FROM THE OFFICE OF ROSE KALLOR FOR THE
MONTH OF SEPTEMBER 2014. For Review only

b. FROM ROSE KALLOR A SUMMARIZATION OF ACTIVITIES AND PENDING LEGAL MATTERS DURING THE MONTH OF SEPTEMBER, 2014 for Review only

13. FOR COMMISSION REVIEW AND CONSIDERATION OF THE PROPOSED CALENDAR FOR RETIREMENT COMMISSION MEETINGS FOR 2015. VOTE WILL TAKE PLACE AT THE NOVEMBER MEETING. Mr. Baus has asked the Commission Trustees to consider a change of date in January to either the 2nd or 4th week in January 2015.

14. REQUEST COMMISSION APPROVAL OF THE RECOMMENDATIONS FROM ITS SUBCOMMITTEE ON PURCHASE OF SERVICE AND RELATED MATTERS AND COMMISSION VOTE ON THE MATTERS OF RUDOLPH KAMM, JR. AND KATHRYN MILLER. The vote needs to be taken separately due to a tie in the Subcommittee. Mr. Luciano moved, seconded by Mr. Greatorex to approve the recommendations from its Subcommittee on Purchase of Service and Related matters. All voted in favor. On the matter of Rudolph Kamm, Jr. Mr. McLellan moved, seconded by Mr. Greatorex to table the vote on Rudolph Kamm until the Commission meeting in December. All voted to table the decision on Mr. Kamm. On the matter of Kathryn Miller Ms. Yelmini moved, seconded by Mr. Baus to deny Kathryn Miller's request. Following a lengthy discussion a vote was called as follows:

Motion to DENY - Mr. Baus, Ms. Brown-Brewton, Mr. Carey, Mr. Cosgrove, Mr. Coffey, Ms. Yelmini.

Motion to APPROVE - Mr. Casella, Mr. Fortier, Mr. Greatorex, Mr. Luciano, Mr. McLellan, Mr. Poulin. Tie Vote. The Chairman did not vote on the motion. Motion FAILED
Ms. Miller will be sent a letter on how to proceed forward from the Retirement Services Division.

15. ROBINSON AND COLE TO SPEAK ON PENDING IRS REQUEST AND MATTERS
Attorney Bruce Barth, accompanied by Attorney Christie updated the Trustees on what is happening with regard to the TAMRA 415 limits and the Private Letter Ruling on the SAG award. Having spoken to the IRS on the TAMRA issue - since this issue is so old there will not be a ruling by the IRS. The Private Letter request for the SAG award has gone to the Assistant Commissioner of the IRS, but at this point in time a ruling is not expected. The Trustees urged Robinson and Cole to be as aggressive as possible in dealing with these issues. Part of the problem is not being in receipt of the ICE MILLER materials yet. Attorney Rose was assigned the task of following up in writing with ICE MILLER. The Chairman will also place a call to ICE MILLER asking for expediency with the Commission's request.

16. DECISION AND DECLARATORY RULING IN JOSEPH MATURO JR. MATTER. Mr. Casella moved, seconded by Mr. Baus to table this item until the November meeting to give Trustees time to look at the document. All voted in favor

Unanimous Decision

17. REQUEST COMMISSION APPROVAL OF THE FOLLOWING DOCTOR TO THE MEDICAL EXAMINING BOARD. Mr. Luciano moved, seconded by Mr. Greatorex to approve Dr. Katsetos to the Medical Examining Board. All voted in favor

Unanimous Decision

TABLED ITEM

REVIEW AND RECONSIDER OF ITS DECEMBER 20, 2013 DENIAL OF VINCENT DEROSA'S CLAIM CONCERNING HIS RETIREMENT BENEFIT - tabled until the November 2014 meeting.


EXECUTIVE SESSION

DISCUSSION WITH LAW FIRM ROSE KALLOR OF THE DEFINITION OF PARTICIPATION MUNICIPALITY/CRUZ-PONTE AND OTHER SIMILARLY SITUATED RETIREES

At 10:54 a.m. Ms. Brown-Brewton moved, seconded by Mr. Fortier to move into Executive Session to discuss the definition of the participating municipality, including Cruz-Aponte and
others in similar situations. Ms. Braswell, Attorney Rose and Ms. Halpin were requested to stay for Executive Session.

At 11:15 a.m. Ms. Brown-Brewton moved, seconded by Ms. Yelmini to direct the Retirement Services Division to develop a process to identify individuals in similar situations and give notice and to direct the Retirement Division to strictly construe the mandates of C.G.S. Section 7-438 as articulated in the Commission's decision in the Maturo matter and cease pension payments to any retiree who is working for a participating municipality or in a manner inconsistent with the principles of the Maturo decision. Mr. Luciano voted NO. Mr. Poulin, Mr. Cosgrove, Mr. Casella, Ms. Yelmini, Ms. Brown-Brewton, Mr. Baus, Mr. Carey and Mr. Coffey voted in the AFFIRMATIVE. Majority Decision

ADJOURNMENT

Mr. Baus moved, seconded by Mr. Poulin to adjourn the meeting at 11:31 a.m.




_________________________ _______________________
Brenda K. Halpin, Director Peter R. Blum, Chair
Retirement Services Division


Return to Meetings, Agendas and Minutes Home Page
Return to Comptroller's Home Page