MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
OFFICE OF THE STATE COMPTROLLER
7TH FLOOR CONFERENCE ROOM
55 ELM STREET
HARTFORD, CT 06106
9:00 a.m.

September 18, 2014

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

TRUSTEES ABSENT
Robert Coffey

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, Assistant Director, Retirement Services Division
Natalie Braswell, Assistant Comptroller
Michael Rose, General Counsel to the Commission
Robin Kallor, Attorney, Rose Kallor
Cynthia Christie, Robinson and Cole, Counsel to the Commission for Federal Tax Matters
Shawn Bradbury, Robinson and Cole

GUESTS
Michael Quintalliano and wife

CALL TO ORDER

The Chairman called the meeting to order at 9:15 a.m.

CHAIRMAN'S REPORT

Nothing to report until Executive Session

Division Director's Administrative Report

We are still finalizing the September retirement payroll so I will be able to provide the finalized numbers next month as well as provide a report in your monthly agenda of the finalizations and the status. We have been able to bring back three student interns one day a week to continue with the work on the backlog.
We have received a total of 1,211 requests to transfer from the ARP to Hybrid. Of that number 967 were transfers, 223 retirees, 9 waivers, 4 prospective. We received in 23 applications during the month. Of the 975 transfers we have 523 applications waiting to be processed. Letters were sent on Monday to all of the employees with pending applications to let them know we are working on the applications.

Pending Disability Applications as of August 30, 2014

Pending Applications: 202
(applications preliminarily reviewed - 54
(applications waiting for documentation -148
Applications scheduled: 202
Total Pending: 404
FOR THE MONTH OF AUGUST
Number of Applications Received 18
Number of Applications on Agenda 43
Number of Applications Approved 31

The next available meeting for scheduling is February 2015. The rehired retiree from the Office of Healthcare Advocate was unable to start in August however we anticipate a beginning date in October.

We have been working with Custom Communications on the Employee Benefit Statements our plan is to have the statements mailed by the end of October.

We are also working with the Auditors' of Public Accounts and the Office of Policy and Management regarding the GASB 67 reporting. There are three auditing firms on contract with the Department of Administrative Services to work with. We are drafting the Scope of Work and will be presenting that to the Actuarial Subcommittee for their review next month.

The training for the new Medical Examining Board doctors will be held on September 29th beginning at 1:00 p.m. The first hour will be for new employee orientation and then the policies and procedures for the Medical Examining Board. The training materials will be provided to all of the Commission members within the next few days.

The Tier II and IIA Estimators are in the final stages of development and testing. Our goal is to have them available on the website by the end of October. We have requested that one of our retirees return to work through the end of December to assist on this project.

NEW MATTER

1. REQUEST COMMISSION APPROVAL OF THE AUGUST 21, 2014 MINUTES Mr. Luciano moved, seconded by Mr. Greatorex to approve the minutes of August 21, 2014 as amended to reflect Mr. Casella's no vote in item 18, New London Fire Fighters participation in CMERS in the August 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 AUGUST 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System Service Retirements for the month of August 2014. All voted in favor

Unanimous Decision

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

Unanimous Decision

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

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE-RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF AUGUST 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Pre-Retirement Death Benefit Retirements for the month of August 2014. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL EMPLOYEE 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 JULY 11, 2014 THROUGH AUGUST 7, 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Probate Judges and Employees Retirement Fund Personnel expenses for the pay period July 11, 2014 through August 7, 2014. All voted in favor

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL EMPLOYEES DISABILITY RETIREMENTS FROM THE MEDICAL EXAMINING BOARD. Mr. Luciano moved, seconded by Mr. Greatorex to approve the Municipal Employees Disability retirements from the Medical Examining Board. All voted in favor

Unanimous Decision

11. 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 Trustee's 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 REIMBURSEMENT. Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel expenses reimbursements. All voted in favor. Mr. Poulin abstained

Majority Decision

13. a. REVIEW OF BILLING FROM THE OFFICE OF ROSE KALLOR FOR THE
MONTH OF AUGUST 2014. For review only, no motion made

b. FROM ROSE KALLOR A SUMMARIZATION OF ACTIVITIES AND PENDING LEGAL MATTERS DURING THE MONTH OF AUGUST, 2014. For review only, no motion made

14. REQUEST COMMISSION CONSIDERATION OF THE RECOMMENDATIONS OF ITS SUBCOMMITTEE ON REGULATIONS AND OVERPAYMENTS FROM ITS MEETING ON SEPTEMBER 9, 2014. Mr. Luciano moved, seconded by Mr. Greatorex to approve the recommendations of the subcommittee on Regulations and Overpayments from its meeting on September 9, 2014. All voted in favor

Unanimous Decision

15. a. RECOMMENDATION FROM THE LEGAL AND PERSONNEL SUBCOMMITTEE FROM ITS MEETING ON SEPTEMBER 10, 2014 TO REFER THE PENDING MATTERS REGARDING CMERS MEMBERS FOR THE TOWNS OF MONTVILLE, MANSFIELD, EAST HAVEN AND THOMPSON TO THE ATTORNEY GENERAL FOR OPINION. Mr. Casella moved, seconded by Mr. Fortier to accept the recommendation from the Legal and Personnel Subcommittee from its meeting on September 19, 2014 to refer the pending matters regarding CMERS Member town of Montville, Mansfield, East Haven and Thompson to the Attorney General for opinion. Ms. Brown-Brewton stated that we have an attorney to perform this kind of work instead of the Attorney General. Mr. Luciano brought up some concerns about obtaining the Attorney General's opinion. Mr. Carey stated that a lot of towns are coming forward with questions about new hires. Mr. Casella brought up the issue with Thompson being given an answer by the Commission and not adhering to the Commission decision. Ms. Yelmini and Mr. Baus brought up the issue of what account the attorney would be paid from. SERS should not be charged for CMERS issues. Ms. Carlson said she would look into the mechanism of charging the CMERS fund for the work. At this point Mr. Casella removed his motion from the floor. Ms. Brown-Brewton moved, seconded by Mr. Luciano to table this item until the October meeting. Mr. Baus, Ms. Brown-Brewton, Mr. Carey, Mr. Cosgrove, Mr. Fortier, Mr. Greatorex, Mr. Luciano, Ms. Mandour, Mr. Poulin, Ms. Yelmini and Mr. McLellan voted YES. Mr. Casella voted NO

Motion carried by Majority vote to table until the October meeting.

b. RECOMMEND TO THE RETIREMENT COMMISSION THAT IT DIRECT THE RETIREMENT DIVISION TO STRICTLY CONSTRUE THE MANDATES OF C.G.S. SECTION 7-438 AS ARTICULATED IN THE COMMISSION'S DECISION IN MATURO MATTER AND CEASE PENSION PAYMENTS TO ANY RETIREE WHO IS WORKING FOR A PARTICIPATING MUNICIPALITY OR IN A MANNER INCONSISTENT WITH THE PRINICPLES OF THE MATURO DECISION. Ms. Brown-Brewton moved, seconded by Ms. Mandour to open this item for discussion with Attorney Rose on where this stands and the issues involved. All voted in favor. Following discussion Ms. Yelmini moved to disapprove, seconded by Mr. Carey. Mr. Carey, Mr. Casella, Mr. Fortier voted NO, Mr. Baus, Mr. Cosgrove, Mr. Greatorex, Mr. Luciano, Ms. Mandour, Mr. Poulin, Ms. Yelmini and Mr. McLellan voted YES.

Motion carried by Majority vote

TABLED ITEM

REQUEST FROM MICHAEL QUINTILLIANO FOR REVIEW AND RECONSIDERATION OF THE COMMISSIONS DECISION TO DENY HIS REQUEST OF WAIVER FOR OVERPAYMENT TABLED FROM THE JULY17, 2014 MEETING (see item #14, the reconsideration from the Regulations and Overpayment Subcommittee at its meeting of September 9, 2014 to uphold the decision to deny) Mr. Luciano moved, seconded by Ms. Mandour to DENY the request from Mr. Quintilliano for reconsideration of the Commission's decision to deny his request of waiver for overpayment tabled from the meeting of July 17, 2014. All voted in favor

Unanimous Decision

REVIEW AND RECONSIDER ITS DECEMBER 20, 2013 DENIAL IF VINCENT DEROSA'S CLAIM CONCERNING HIS RETIREMENT BENEFIT - tabled from the August 21, 2014 meeting while awaiting information. Since no further information has arrived Mr. Baus moved, seconded by Ms. Mandour to table until the November meeting. All voted in favor

Majority Decision

EXECUTIVE SESSION

At 10:15 Ms. Brown Brewton moved to enter into Executive Session to discuss strategy with Attorney Christie from Robinson & Cole as defined in C.G.S. 1-200(6)(E). Mr. Carey seconded the motion. Attorney Christie, Attorney Natalie Braswell and Director Brenda Halpin were invited to attend. All voted in favor

At 10:35 Mr. Luciano, seconded by Ms. Mandour moved to come out of Executive Session. All voted in favor

No motions were made or items to report out.

At 10:40 Mr. McLellan moved to adjourn.

ADJOURNMENT


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


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