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

October 15, 2015

TRUSTEES PRESENT
Peter Adomeit, Chairman
Sandra Fae Brown- Brewton
Michael Carey
Charles Casella
Robert Coffey
Richard Cosgrove
Paul Fortier
Steven Greatorex
Sal Luciano
Ronald McLellan
Claude Poulin
Angel Quiros

TRUSTEES ABSENT
Lisa Grasso-Egan
Laila Mandour

EX OFFICIO MEMBERS
Martha Carlson, Deputy State Comptroller
Deborah Spalding, CIO, Office of the State Treasurer

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Robin Kallor and Cindy Cieslak in place of Michael Rose, General Counsel to the Retirement Commission
Karen Nolan, Office of Policy and Management
Natalie Braswell, General Counsel to the State Comptroller
Genevieve Ballinger, Research Analyst, Office of the State Comptroller

CALL TO ORDER
Chairman Adomeit called the meeting to order at 9:08 a.m.

CHAIRMAN'S REPORT
Chairman Adomeit reported that they are not through with the process of hearings for those who had their pensions suspended due to working too many hours or ineligible employment. The subcommittee will meet with tax counsel to review the cases and then will come up with recommendations to present before the full Commission. The full transcripts will be brought so that the Commission has all the evidence.

DIVISION DIRECTOR'S ADMINISTRATIVE REPORT
For the October retirement payroll we had 177 new retirees (149 normal, 6 disabilities, 15 voluntary pending and 7 Hybrid). There were 4 disabilities and 5 normal retirements finalized for the month. The current backlog of audits is 14,500.

On the ARP to Hybrid transfers there are 313 retirees, 1,520 transfers, 9 waivers and 4 prospective for a total of 1,846. The outstanding number to be audited and processed is 766.

FOR THE MONTH OF SEPTEMBER

The next available meeting for scheduling is November 2015.

The excitement is growing in the Division with the go-live of our Customer Service Center that is on schedule to open November 2nd. The staff has been attending training classes. The new phone system is scheduled to be in operation on or about November 9th. By this time next month we will have been in operation for about three weeks.

The draft calendar of the 2016 Retirement Commission meetings is before you, to review and this will be placed on the agenda for the November meeting.

The 24 month review letters have been sent out, about 220 letters to those who are receiving Social Security disability. Requested them to sign the letters and provide a copy of the decision letter, which caused many phone calls to our office and Social Security offices. Some of the SS offices indicated they could not get a copy or it would cost $38. We have a feed from SS that we can use to verify if they are on Social Security disability and then they are eligible. Natalie Braswell has written the final procedures amended to match the agreement of the parties. We will then review the clarification with the MEB and will move forward with the 24 month reviews.

Chairman Adomeit informed the Board that Michael Rose was unable to attend the meeting today because he was at his sister's mother's funeral, after she battled a twenty year long fight stemming from a hospital incident. Chairman Adomeit indicated that Mr. Rose's colleagues Robin Kallor and Cindy Kieslak were here in Mr. Rose's place.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF SEPTEMBER 17, 2015 MINUTES (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the September 17, 2015 minutes. All voted in favor.

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM EXPENSES (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Chairman's per diem expenses. All voted in favor.

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEES'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS (attached) 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.

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel Expenses reimbursement. All voted in favor. Mr. Poulin abstained.

Majority Decision

5. REQUEST COMMISSION REVIEW OF THE SEPTEMBER 2015 BILLING FROM ROSE KALLOR (Executive Session Envelope) Mr. Luciano moved, seconded by Mr. Greatorex to approve the September 2015 billing from Rose Kallor. All voted in favor.

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF SEPTEMBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System service retirements for the month of September 2015. All voted in favor.

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF SEPTEMBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System disability retirements for the month of September 2015. All voted in favor.

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM PRE-RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF SEPTEMBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System pre-retirement death benefit retirements for the month of September 2015. All voted in favor.

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM VOLUNTARY PENDING RETIREMENTS FOR THE MONTH OF SEPTEMBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System voluntary pending retirements for the month of September 2015. All voted in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF SEPTEMBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut State Employees Retirement System retroactive retirements for the month of September 2015. All voted in favor.

Unanimous Decision

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

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM SPOUSE RETIREMENTS OCTOBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the judges, family support magistrates and compensation commissioners retirement system spouse retirements. All voted in favor.

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS FOR OCTOBER 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the probate judges and employees retirement system retirements. All voted in favor.

Unanimous Decision

14. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR THE PAY PERIOD AUGUST 7, 2015 THROUGH SEPTEMBER 3, 2015 (attached) Mr. Luciano moved, seconded by Mr. Greatorex to approve the probate judges and employees retirement fund personnel expenses for the pay period August 7, 2015 through September 3, 2015. All voted in favor.

Unanimous Decision

15. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE STATE EMPLOYEES RETIREMENT SYSTEM ROLL FORWARD ACTUARIAL VALUATION REPORT PREPARED AS OF JUNE 30, 2015 (will be provided at the meeting) Mr. Poulin moved, seconded by Mr. Luciano, to accept the roll forward actuarial valuation report prepared as of June 30, 2015. Mr. Poulin explained that we only have these valuations every two years. It is rolling forward all the information from last year, which does not change. The only change reflected in this valuation is the investment return for this year. Last year was 12.2%. This reflects a slight variation in the systems including a slight increase in the employer contributions compared to last year. But the changes do not have an impact on the appropriation; they are just for informational purposes. All voted in favor. Mr. Fortier arrived to the meeting just after this vote took place.

Unanimous Decision

16. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE CONNECTICUT JUDGES, FAMILY SUPPORT MAGISTRATES, AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM ROLL FORWARD ACTUARIAL VALUATION REPORT PREPARED AS OF JUNE 30, 2015 (will be provided at the meeting) Mr. Luciano moved, seconded by Mr. Poulin to accept the Connecticut judges, family support magistrates, and compensation commissioners retirement system roll forward actuarial valuation report prepared as of June 30, 2015. Mr. Poulin explained that the same comments to number 15 also apply to this valuation. All voted in favor. Ms. Carlson indicated that Deborah Spalding had been replaced by Greg Franklin from the Office of the Treasurer because Ms. Spalding had to step away. Mr. Coffey also arrived to the meeting.

TABLED ITEMS

REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE GASB STATEMENT NO. 68 REPORT FOR THE MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM PREPARED AS OF JUNE 30, 2014 - THIS ITEM WILL BE SENT ELECTRONICALLY Mr. Poulin moved, seconded by Mr. Cosgrove to accept the GASB Statement No. 68 Report for the Municipal Employees' Retirement System prepared as of June 30, 2014. All voted in favor.

EXECUTIVE SESSION ITEMS FOR DISCUSSION AND POSSIBLE ACTION

Mr. Luciano moved, seconded by Mr. Poulin to enter into Executive Session at 9:40 a.m. All voted in favor. Ms. Carlson, Ms. Halpin, and Ms. Braswell were asked to stay. During Executive Session, Mr. Landry and Ms. Brown-Brewton arrived to the meeting.

Unanimous Decision

A. Legal Opinion regarding CGS 7-438 Analysis.
B. Pending Legal Matter: Brown update.
C. Pending Legal Matter: Cruz-Aponte update,
D. Pending Legal Matter: Maturo update
E. Pending Legal Matter: Bouchard update.
F. Legal Opinion regarding Whitman petition for declaratory ruling. Discussion and possible action.

Mr. Luciano moved, seconded by Mr. Poulin to deny the Whitman petition for declaratory ruling. Mr. Cosgrove asked if they could move on it since it was only in the Executive Session agenda for discussion and possible action. Mr. Fortier indicated we could amend the agenda just in case it is required. Mr. Luciano moved, seconded by Ms. Brown-Brewton to amend the agenda to include the Commission's approval of the Whitman petition for declaratory ruling. All voted in favor. Mr. Luciano stated the minutes should indicate the decision as unanimous because this motion requires a super majority vote.

Unanimous Decision

Mr. Luciano moved, seconded by Mr. Cosgrove to deny the Whitman petition for declaratory ruling. All voted in favor.

Unanimous Decision

G. Status of Legal Review/Update on Regulations

Mr. Luciano asked if any public discussion should be had on the update of regulations. Ms. Kallor indicated that she would be in touch with Ms. Braswell to coordinate a meeting date with Mr. Rose and Chairman Adomeit with a new deadline of December 1, 2015, if this is acceptable to the Commission and Ms. Braswell. Mr. Luciano asked if there was a specific regulation, but Ms. Kallor responded it was a universal review of the regulations. Mr. Casella asked if there would be an update today from Ms. Braswell and Ms. Kallor, but Ms. Kallor asked that they extend the deadline for the update to December 1, 2015.

ADJOURNMENT

With no further business before the Commission, Chairman Adomeit moved, seconded by Mr. Fortier to adjourn at 10:16 a.m.

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