DRAFT
STATE OF CONNECTICUT
STATE EMPLOYEES RETIREMENT COMMISSION

A regular meeting of the State Employees Retirement Commission (the "Commission") was held on March 21, 2019, in 7th Floor Conference Room at 55 Elm Street, Hartford Connecticut. The meeting convened at 9:00 a.m. and the following members of the Commission were present:

• Peter Adomeit, Chairman
• Janet Andrews, Trustee
• Michael Bailey, Trustee
• Karen Buffkin, Trustee
• Charles Casella, Trustee
• Robert D. Coffey, Trustee
• Paul Fortier, Trustee
• Ronald McLellan, Trustee
• Karen Nolen, Trustee
• Claude Poulin, Trustee
• Angel Quiros, Trustee
• Sal Luciano, Trustee
• Martha Carlson, Deputy Comptroller, Ex Officio Member
• Laurie Martin, Ex Officio Member

The following members of the Commission were absent:

• Michael Carey, Trustee
• Sandra Fae Brown Brewton, Trustee

Also present were:

• Amanda Alfonso, Retirement Services Division
• Bruce Barth, Robinson & Cole
• Natalie Braswell, Retirement Services Division
• Cindy Cieslak, General Counsel to the Commission Rose Kallor
• John Herrington, Retirement Services Division
• Colin Newman, Retirement Services Division
• Alisha Sullivan, Robinson & Cole

Call to Order

Chairman Adomeit called the meeting to order at 9:10 a.m.

Chairman's Report

There was no chairman report.

Mr. McLellan stated that this is his last Retirement Commission meeting.

At 9:13 a.m., Mr. Casella moved, seconded by Mr. Coffey, to amend the agenda to add three items, items 18, 19, and 20 to the New Matters part of the agenda and 2 items, items 13 and 14, to the Executive Session part of the agenda. The items were as follows:

a.Item 18 under New Matters: Commission Acceptance of the Connecticut Municipal Employees Retirement System GASB 67 reporting as of June 30, 2018;

b. Item 19 under New Matters: Commission Acceptance of the Interim Actuarial Evaluation;

c. Item 20 under New Matters: Discussion of the MERS option factors;

d. Item 13 under Executive Session: CMERS interest crediting with a written legal opinion; and

e. Item 14 under Executive Session: the RFP selection committee recommendations for general counsel for the Commission, as a personnel matter.

The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to amend the agenda as described. 

Division Director's Report 

At 9:14 a.m., Mr. Herrington provided the Division Director�s Report. The Division continues to schedule people to transfer for the SAG award. He said that they expect to complete the majority of the transfers by the end of April. The Division is also looking into reducing the wait time and the backlog for disability retirements.  

Division Director's Report

Disability Retirements

New Matters

1. Request Commission Approval of the February 21, 2019 minutes.

1.  At 9:25 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the February 21, 2019 minutes.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the February 21, 2019 minutes.

2. Request Commission Approval of the State Employees Retirement Commission Chairman�s Per Diem Expenses.

1. At 9:25 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the State Employees Retirement Commission Chairman�s Per Diem Expenses.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3. The Commission voted unanimously in favor to approve the State Employees Retirement Commission Chairman�s Per Diem Expenses.

3. Request Commission Approval of the State Employees Retirement Commission Union Trustee Claude Poulin Per Diem and Travel Expenses.

1. At 9:25 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the State Employees Retirement Commission Union Trustee�s Per Diem and Travel Expenses.
2. Mr. Poulin abstained.
3. Chairman asked if there was any discussion. There being no discussion he called for a vote.
4. The Commission voted unanimously in favor, with Mr. Poulin abstaining, to approve the State Employees Retirement Commission Union Trustee�s Claude Poulin Per Diem and Travel Expenses.

4. Request Commission Acceptance of the March 2019 Billing from Robinson and Cole for Federal Tax Matters.

1. At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to accept the March 2019 billing from Robinson and Cole for Federal Tax Matters.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3. The Commission voted unanimously in favor to accept the March2019 billing from Robinson and Cole for Federal Tax Matters.

5. Request Commission Acceptance of the March 2019 Billing from Robinson and Cole for CMERS.

1. At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to accept the March 2019 billing from Robinson and Cole for CMERS.
2. Chairman asked if there was any discussion. There being no discussion he called for a vote.
3. The Commission voted unanimously in favor to accept the March 2019 billing from Robinson and Cole for CMERS.

6. Request Commission Acceptance of Invoices from Rose Kallor rendered for the month of February.

1. At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to accept the invoices from Rose Kallor rendered for the month of January.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to accept the invoices from Rose Kallor rendered for the month of February.

7. Request Commission Approval of the Connecticut State Employees Retirement System Service Retirements for the Month of February 2019. 

1.  At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Connecticut State Employees Retirement System Service Retirements for the Month of February 2019. 
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Connecticut State Employees Retirement System Service Retirements for the Month of February 2019. 

8. Request Commission Approval of the Connecticut State Employees Retirement System Voluntary Pending Retirements for the Month of February 2019.   

1. At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Connecticut State Employees Retirement System Voluntary Pending Retirements for the Month of February 2019. 
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Connecticut State Employees Retirement System Voluntary Pending Retirements for the Month of February 2019. 

9. Request Commission Approval of the Connecticut State Employees System Disability Retirements for the Month of February 2019. 

1.  At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Connecticut State Employees System Disability Retirements for the Month of February 2019.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Connecticut State Employees System Disability Retirements for the Month of February 2019. 

10.  Request Commission Approval of the Connecticut State Employees System Retroactive Retirements for the Month of February 2019.

1.  At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Connecticut State Employees System Retroactive Retirements for the Month of February 2019. 
2.   Chairman asked if there was any discussion. There being no discussion he called for a vote.
3. The Commission voted unanimously in favor to approve the Connecticut State Employees System Retroactive Retirements for the Month of February 2019. 

11.  Request Commission Approval of the Municipal Retirement System Retirements for the Month of February 2019. 

1. At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Municipal Retirement System Retirements for the Month of February 2019. 
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Municipal Retirement System Retirements for the month of February 2019. 

12.  Request Commission Approval of the Municipal Retirement System Disability Retirements Approved by the Medical Examining Board.

1. At 9:26 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Municipal Retirement System Disability Retirements Approved by the Medical Examining Board.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Municipal Retirement System Disability Retirements Approved by the Medical Examining Board.

13.  Request Commission Acceptance of the Recommendations by the Medical Examining Board for the Continued Entitlement Tabled and Denials.

1. At 9:27 a.m., Mr. Casella moved, seconded by Mr. Coffey to accept the recommendations by the Medical Examining Board for the Continued Entitlement Tabled and Denials.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote. 
3.  The Commission voted unanimously in favor to accept the recommendations by the Medical Examining Board for the Continued Entitlement Tabled and Denials.

14.  Request Commission Acceptance of the Recommendations by the Medical Examining Board for the Continued Entitlement Approvals.

1. At 9:27 a.m., Mr. Casella moved, seconded by Mr. Coffey to accept the recommendations by the Medical Examining Board for the Continued Entitlement Approvals.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to accept the recommendations by the Medical Examining Board for the Continued Entitlement Approvals.

15.  Request Commission Approval of the Connecticut Probate, Judges and Employees Retirement System.

1. At 9:27 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Connecticut Probate Judges and Employees Retirement System.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3. The Commission voted unanimously to approve the Connecticut Probate Judges and Employees Retirement System.

16.  Request Commission Approval of the Probate Judges and Employees Retirement Fund Personnel Expenses for the Pay Period January 4, 2018 Through February 1, 2019.

1.  At 9:27 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Probate Judges and Employees Retirement Fund Personnel Expenses for the Pay Period January 4, 2018 Through February 1, 2019.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Probate Judges and Employees Retirement Fund Personnel Expenses for the Pay Period January 4, 2018 Through February 1, 2019.

17.  Request Commission Approval of the Recommendations from the Subcommittee on Purchase of Service and Related Matters meeting held on February 28, 2019.

1. At 9:27 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Recommendations from the Subcommittee on Purchase of Service and Related Matters meeting held on February 28, 2019.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to approve the Recommendations from the Subcommittee on Purchase of Service and Related Matters meeting held on February 28, 2019.

18.  Request Commission Acceptance of the Connecticut Municipal Employees Retirement System GASB 67 reporting as of June 30, 2018.

1. At 9:28 a.m., Mr. Casella moved, seconded by Mr. Coffey to accept the Connecticut Municipal Employees Retirement System GASB 67 reporting as of June 30, 2018.
2.  Chairman asked if there was any discussion. There being no discussion he called for a vote.
3.  The Commission voted unanimously in favor to accept the Connecticut Municipal Employees Retirement System GASB 67 reporting as of June 30, 2018.

18. Request Commission Approval of the Investment Subcommittee�s recommendations on Investment Line-Up Changes.

1. At 9:30 a.m., Ms. Buffkin moved, seconded by Mr. Coffey to table the request for Commission approval of the Investment Subcommittee�s recommendations on Investment Line-Up Changes.
2.  Chairman asked if there was any discussion.  There being no discussion he called for a vote.
3.  The Commission voted unanimously to table the request for Commission approval of the Investment Subcommittee�s recommendations on Investment Line-Up Changes.

19.  Request Commission Approval of the Interim Actuarial Evaluation.

1. At 9:31 a.m., Mr. Casella moved, seconded by Mr. Coffey to approve the Interim Actuarial Evaluation.
2.  Chairman asked if there was any discussion. After a brief discussion, he called for a vote.
3.  The Commission voted unanimously in favor to approve Interim Actuarial Evaluation.

20. Commission Discussion of the MERS option factors.

1. There was a discussion relating to the MERS option factors. Mr. Poulin addressed the factors for various options at retirement and new factors for early retirement. Deputy Comptroller said that we will have to look into doing a blended rate.  The trustees discussed seeking from the actuaries a timeline for possible implementation.
2. At 9:48 a.m., Mr. Casella moved, seconded by Mr. Luciano to accept the recommendation to inquire as to a timeline for possible implementation and blended rate.
3.  Chairman asked if there was any discussion. After the discussion he called for a vote.
4. The Commission voted unanimously in favor to accept the recommendation to inquire as to a timeline for possible implementation and blended rate.

Executive Session - discussion and possible action

1. Sen. L. Scott Frantz - written legal opinion.
2. Summary Plan Descriptions - written legal opinion.
3. Determination Letter Update - written legal opinion.
4. Jeremy Wiganowske - pending claim/written legal opinion.
5. William Dietrich - pending claim/written legal opinion.
6. Town of Thompson - pending litigation.
7. Catherine Crandle - pending litigation.
8. Ronald Johnson - pending litigation.
9. James Rizzio - pending litigation.
10. David Carter - pending litigation.
11. Richard Kay - pending litigation.
12. Update re: SAG Award - written legal opinion.
13. CMERS interest crediting - written legal opinion.  
14. RFP selection committee recommendations for general counsel for the Commission - personnel discussion. 

At 9:48 a.m., Mr. Casella moved, seconded by Mr. Coffey to suspend the regular meeting and go into executive session for the purposes of discussing Item 1. Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 1.

At 10:01 a.m., Mr. Coffey moved, seconded by Mr. Quiros to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:01 a.m., Mr. Casella moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 2.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 2.

At 10:02 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:02 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 3.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 3.

At 10:03 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:03 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 4.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 4.

At 10:04 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:05 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 5.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 5.

At 10:08 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:08 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 6.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 6.

At 10:10 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:10 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 7.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 7.

At 10:11 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:11 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 8.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 8.

At 10:12 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:12 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 9.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 9.

At 10:12 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:13 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 10.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 10.

At 10:15 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:15 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 11.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 11. 

At 10:16 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:16 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 12.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 12. 

At 10:16 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:17 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 13.  Attorney Barth, Attorney Braswell, Attorney Cieslak, John Herrington, Colin Newman, and Attorney Sullivan were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 13. 

At 10:27 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

At 10:27 a.m., Mr. Luciano moved, seconded by Mr. Coffey to go into executive session for purposes of discussing Item 14.  Attorney Braswell, John Herrington, and Colin Newman were invited by the Commission to stay for executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously in favor to enter executive session to discuss Item 14. 

At 10:35 a.m., Mr. Luciano moved, seconded by Mr. Coffey to exit executive session. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously to exit executive session.

The following motions were made in public session: 

At 10:35 a.m., Ms. Buffkin moved, seconded by Mr. Luciano to ask Commission Counsel to review the IRS rules and look into the issues related to Mr. Frantz�s attempted waiver of participation in SERS, including but not limited to the issue of the waiver and the spousal waiver form.  The Chairman asked if there was any discussion. There being no discussion he called for a vote.  All voted in favor. 

At 10:37 a.m., Mr. Luciano moved, seconded by Ms. Buffkin to approve the legal and personnel subcommittee�s recommendations regarding Mr. Dietrich. The Chairman asked if there was any discussion. There being no discussion he called for a vote.  All voted in favor. 

At 10:38 a.m., Mr. Luciano moved, seconded by Mr. Coffey to follow the recommendations of the Commission Counsel in regards to the CMERS interest crediting issue as it relates to pensions of individuals that are not vested.  The Chairman asked if there was any discussion. Ms. Buffkin offered an amendment to the motion, proposing that the Division notify all individuals that have inactive accounts of the applicable interest crediting provisions and to seek direction from counsel regarding the possible recoupment of interest credited in error to individuals that have previously received a refund of CMERS contributions. Mr. Luciano accepted the amendment as a friendly amendment.  Ms. Carlson explained that after 10 years, unclaimed CMERS contributions revert to the retirement fund and that towns and individuals should be notified of that provision as well. The Chairman called for a vote. All voted in favor. 

At 10:42 a.m., Mr. Luciano moved, seconded by Ms. Buffkin to retain Rose Kallor as general counsel to the Commission. The Chairman asked if there was any discussion. There being no discussion he called for a vote.  All voted in favor. 

Adjournment 

With no further business before the Commission, Mr. McLellan moved, seconded by Mr. Coffey to adjourn at 10:44 a.m.  The Commission voted unanimously to adjourn.  

Respectfully Submitted by: 

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Peter Adomeit, Chairman

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Prepared by John Herrington
Director Retirement Service Division

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