DRAFT
STATE OF CONNECTICUT
STATE EMPLOYEES RETIREMENT COMMISSION

A regular meeting of the State Employees Retirement Commission (the "Commission") was held on September 21, 2017, 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
• Michael Carey, Trustee
• Charles Casella, Trustee
• Richard M. Cosgrove, Trustee
• Paul Fortier, Trustee
• Lisa Grasso Egan, Trustee
• Sal Luciano, Trustee
• Laila Mandour, Trustee
• Ronald McLellan, Trustee
• Claude Poulin, Trustee
• Angel Quiros, Trustee
• Martha Carlson, Deputy Comptroller & Interim Director of Retirement Services, Ex Officio Member
• Laurie Martin, Ex Officio Member

The following members of the Commission were absent:

• Sandra Fae Brown Brewton, Trustee
• Robert D. Coffey, Trustee

Also present were:

• Amanda Alfonso, Retirement Services Division
• Bruce Barth, Robinson & Cole
• Cindy Cieslak, General Counsel to the Commission Ford Harrison
• Colin Newman, Retirement Services Division
• Michael Rose, General Counsel to the Commission Ford Harrison

Call to Order

Chairman Adomeit called the meeting to order at 9:14 a.m.

Chairman's Report

At 9:14 a.m. the Chairman gave his report. Chairman Adomeit wanted to make the Commission aware that he spoke to the Governor's office regarding his two year term. He thought the interview went well but they may be contacting Commission members for their opinions.

Division Director's Report

The Division processed 216 retirements for the month of September. There are 190 regular retirements, 6 Hybrid retirements, 7 Voluntary Pending cases and 13 new disability retirements. The Disability Unit was able finalize 12 disability cases for September. There were 208 finalizations processed on the September payroll. There are also finalizations that are pending with Accenture for its automated process therefore we are unable to provide up to date metrics for the finalizations for regular retirements at this time.

For the ARP to Hybrid transfers there are a total of 1978 with 479 retirees and 1485 transfers, 5 prospective and 9 waivers. We continue to work through the backlog of transfers with 521 remaining to be completed.

Pending Disability Applications as of August 31, 2017

The next available meeting for scheduling is December 2017.

24 month review cases:

• Currently there are a total of 324 members to be reviewed. A 24 month review MEB meeting was held on September 8th.
• Out of the 324 - 43 are currently collecting Social Security Disability. Out of the 43 cases, 14 are part of the backlog. There are 281 cases that have been identified as not receiving Social Security Disability, 173 are part of the backlog. Of the 173, 26 have been scheduled for a MEB meeting. The remainder is awaiting medical documentation.
  

After the Division Director?s Report, a motion was made at 9:27 a.m. to amend the agenda to include the SAG award for discussion as item 20 under new matters.

i. Mr. Luciano moved, seconded by Ms. Grasso-Egan to amend the agenda to include the SAG award under new matters.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to amend the agenda to include the SAG award for discussion as item 20 under new matters.

New Matters

1. Request Commission Approval of the August 17, 2017 minutes.

i. At 9:27 a.m., Mr. Luciano moved, seconded by Ms. Mandour to approve August 17, 2017 minutes.
ii. Chairman asked if there was any discussion.
iii. There was discussion and the August 17, 2017 minutes were amended to reflect the changes made in the meeting.
iv. The Commission voted unanimously in favor to approve the August 17, 2017 minutes as amended.

 

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

i. At 9:28 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan to approve the State Employees Retirement Commission Chairman?s Per Diem Expenses.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. 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?s Per Diem and Travel Expenses.

i. At 9:28 a.m., Mr. Luciano moved, seconded by Mr. Quiros to approve the State Employees Retirement Commission Union Trustee?s Per Diem and Travel Expense.
ii. Mr. Poulin abstained.
iii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iv. The Commission voted unanimously in favor, with Mr. Poulin abstaining, to approve the State Employees Retirement Commission Union Trustee Claude Poulin?s Per Diem and Travel Expenses.

 

4. Request Commission Approval of the State Employees Retirement Commission Management Trustee Richard M. Cosgrove, Jr. Per Diem and Travel Expenses Reimbursements.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Mandour to approve the State Employees Retirement Commission Management Trustee Richard M. Cosgrove, Jr. Per Diem and Travel Expenses Reimbursements.
ii. Mr. Cosgrove abstained.
iii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iv. The Commission voted unanimously in favor, with Mr. Cosgrove abstaining, to approve the State Employees Retirement Commission Management Trustee Richard M. Cosgrove, Jr.?s Per Diem and Travel Expenses Reimbursements.

 

5. Request Commission Approval of the Parking Expense Reimbursement of Trustee Charles Casella.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the Parking Expense Reimbursement of Trustee Charles Casella.
ii. Mr. Casella abstained.
iii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iv. The Commission voted unanimously in favor, with Mr. Casella abstaining, to approve the Parking Expense Reimbursement of Trustee Charles Casella.

 

6. Request Commission Acceptance of the August 2017 Billing from Robinson and Cole for CMERS.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the billing from Robinson and Cole for CMERS.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the State Employees Retirement Commission August 2017 billing from Robinson and Cole for CMERS.

 

7. Request Commission Acceptance of the August 2017 Billing from Robinson and Cole for federal tax matters.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the billing from Robinson and Cole for federal tax matters.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the State Employees Retirement Commission August 2017 billing from Robinson and Cole for federal tax matters.

 

8. Request Commission Acceptance of the August 2017 Invoices from Ford Harrison.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the billing from Ford Harrison.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the State Employees Retirement Commission August 2017 billing from Ford Harrison.

 

9. Request Commission Approval of the Connecticut State Employees Retirement System Service Retirements for the Month of August 2017.

i. At 9:29 a.m, Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the Connecticut State Employees Retirement System Service Retirements for the Month of August 2017.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Connecticut State Employees Retirement System Service Retirements for the Month of August 2017.

 

10. Request Commission Approval of the Connecticut State Employees Retirement System Voluntary Pending Retirements for the Month of August 2017.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the Connecticut State Employees Retirement System Voluntary Pending Retirements for the Month of August 2017.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Connecticut State Employees Retirement System Voluntary Pending Retirements for the Month of August 2017.

 

11. Request Commission Approval of the Connecticut State Employees System Disability Retirements for the Month of August 2017.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to approve the Connecticut State Employees System Disability Retirements for the Month of August 2017.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Connecticut State Employees System Disability Retirements for the Month of August 2017.

12. Request Commission Approval of the Municipal Retirement System Retirements for the Month of August 2017.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Mr. Cosgrove to approve the Municipal Retirement System Retirements for the Month of August 2017.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Municipal Retirement System Retirements for the month of August 2017.

 

13. Request Commission Approval of the Municipal Retirement System Preretirement Death Benefit for the Month of August 2017.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Mr. Cosgrove to approve the Municipal Retirement System Preretirement Death Benefit for the Month of August 2017.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Municipal Retirement System Preretirement Death Benefit for the month of August 2017.

 

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

i. At 9:29 a.m., Mr. Luciano moved, seconded by Ms. Grasso-Egan to accept the Recommendations by the Medical Examining Board for the Acceptance of Continued Entitlement.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to accept the Recommendations by the Medical Examining Board for the Acceptance of Continued Entitlement.

 

15. Request Commission Acceptance of the Recommendations by the Medical Examining Board for the Denial of Continued Entitlement.

i. At 9:29 a.m., Mr. Luciano moved, seconded by Mr. Cosgrove to accept the Recommendations by the Medical Examining Board for the Denial of Continued Entitlement.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to accept the Recommendations by the Medical Examining Board for the Denial of Continued Entitlement.

16. Request Commission Approval of the Retirement Services Division Request To Discontinue The Disability Applications Due To The One Year Deadline Associated With The Right To Ask For A Reconsideration Of The Medical Examining Board Denial.

i. At 9:30 a.m., Mr. Luciano moved, seconded by Mr. Cosgrove approve of the Retirement Services Division Request to Discontinue the Disability Applications Due to the One Year Deadline Associated with the Right to ask for a Reconsideration of the Medical Examining Board Denial.
ii. Chairman asked if there was any discussion. There was discussion regarding the reasons why the Division is not allowing people to request reconsideration after the year deadline. Mr. Luciano wanted to know specifically what it meant for the people to be denied after the one year.
iii. At 9:40 a.m., the Commission voted unanimously in favor to approve of the Retirement Services Division Request to Discontinue the Disability Applications Due to the One Year Deadline Associated with the Right to ask for a Reconsideration of the Medical Examining Board Denial.

 

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

i. At 9:41 a.m., Mr. Luciano moved, seconded by Mr. Cosgrove to approve the Municipal Retirement System Disability Retirements Approved by the Medical Examining Board.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Municipal Retirement System Disability Retirements Approved by the Medical Examining Board.

 

18. Request Commission Approval of the Probate Judges and Employees Retirement Fund Personnel Expenses for the Pay Period July 7, 2017 Through August 3, 2017.

i. At 9:41 a.m., Mr. Luciano moved, seconded by Mr. Cosgrove to approve the Probate Judges and Employees Retirement Fund Personnel Expenses for the Pay Period July 7, 2017 Through August 3, 2017.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Probate Judges and Employees Retirement Fund Personnel Expenses for the Pay Period July 7, 2017 Through August 3, 2017.

 

19. Request Commission Review and Approval of the Recommendations of the Subcommittee on Purchase of Service and Related Matters.

i. At 9:41 a.m., Mr. Luciano moved, seconded by Mr. Casella to approve the Recommendations of the Subcommittee on Purchase of Service and Related Matters.
ii. Chairman asked if there was any discussion. There being no discussion he called for a vote.
iii. The Commission voted unanimously in favor to approve the Recommendations of the Subcommittee on Purchase of Service and Related Matters.

 

20. Discussion of SAG Award.

i. At 9:41 a.m., Mr. Luciano gave an overview of the SAG award. In 2010 we won an award from an arbitrator that stated that most of the higher education community was steered into ARP instead of SERS. This created IRS problems and the Retirement Commission asked the IRS if they could implement this so that people could change their retirement election. While the Commission was waiting they designed the Hybrid retirement plan. However, since the SAG award went through a Hybrid retirement plan is no longer needed. The people in higher education that were affected by this will have 90 days to choose which retirement plan to go into. This is a contradiction from previous direction because people have always been told that they need to choose a retirement plan on the first day of being hired. Mr. Luciano went on to say that this will be discussed more in executive session but he wanted the record to reflect this.

Executive Session

1. King declaratory ruling - written legal opinion - discussion and possible action.
2. PJERS calculations - written legal opinion - discussion.
3. Bouchard - pending litigation - discussion.
4. Thompson - pending litigation - discussion.
5. Carter - pending litigation - discussion.
6. Walenski - pending litigation - discussion.
7. SAG Award - written legal opinion - discussion.

At 9:44 a.m., Mr. Luciano moved, seconded by Ms. Mandour to go into executive session to discuss Mr. King. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 1.

At 9:48 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan 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 9:48 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan to go into executive session to discuss Item 2. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 2.

At 9:55 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan 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 9:55 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan to go into executive session to discuss Item 3. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 3.

At 9:57 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan 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 9:57 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan to go into executive session to discuss Item 4. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 4.

At 9:59 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan 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 9:59 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan to go into executive session to discuss Item 5. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 5.

At 10:01 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan 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. Luciano moved, seconded by Ms. Grasso Egan to go into executive session to discuss Item 6. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 6.

At 10:02 a.m., Mr. Luciano moved, seconded by Ms. Grasso Egan 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 Ms. Grasso Egan to go into executive session to discuss Item 7. Mr. Newman, Attorney Barth, Attorney Rose and Attorney Cieslak 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 for Item 7.

At 10:15 a.m., Mr. Luciano moved, seconded by Ms. Mandour 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.

Public Session

At 10:18 a.m., Mr. Casella made a motion, seconded by Ms. Mandour to accept the recommendation of the legal and personnel subcommittee to approve the King declaratory ruling response that was written by the attorneys. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously approve the motion.

At 10:19, Mr. Luciano made a motion, seconded by Ms. Mandour to have the attorneys execute and negotiate a closing agreement for the Sag award. The Chairman asked if there was any discussion. There being no discussion he called for a vote. The Commission voted unanimously approve the motion.

Adjournment

With no further business before the Commission, Mr. Luciano moved, seconded by Ms. Mandour to adjourn at 10:19 a.m. The Commission voted unanimously to adjourn.

Respectfully Submitted by:

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Peter Adomeit, Chairman

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Prepared by Martha Carlson
Deputy Comptroller & Interim Director Retirement Service Division

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