STATE EMPLOYEE RETIREMENT COMMISSION
ACTUARIAL SUBCOMMITTEE

MINUTES FOR MEETING OF FEBRUARY 15,2012

TRUSTEES PARTICIPATING

Robert Baus
Charles Casella
Richard Cosgrove
Steve Greatorex
Claude Poulin
Absent - Linda Yelmini

OTHER PARTICPANTS

Brenda Halpin, Director, Retirement Services Division
Helen Kemp, Assistant Director, Retirement Services Division
Jean Reid, Accountant, Retirement Services Division
John Bucchere, IT and DP Unit Supervisor
Colin Newman, Assistant Director
Gregory Franklin, Treasury

The meeting began at approximately 2:35 p.m.

1. MERS - CATER Invoices

This item concerned invoices charged to MERS for "CATER" charges. Ms. Kemp had noticed that certain monthly invoices had very high charges which could not be explained particularly when compared to last year's charges. Mr. Bucchere gave an overview of the charges and whom he had spoken with at DAS and DOIT about the charges. Mr. Bucchere noted that even after this contact, the charges could not be easily explained. The subcommittee discussed the charges and believed that MERS should not pay bills in dispute.

After discussion, the subcommittee determined that the invoices for the months not in dispute should be paid, that MERS should pay an amount for the months in dispute equal to what was charged last year for the same month and that SERC Chair Peter Blum should write a letter to DAS Commissioner DeFronzo and Mr. Reynaud (BEST) seeking answers about the charges and invoices at issue and informing them that the reminder of the bill(s) would not be paid until the charges could be explained to the subcommittee's satisfaction. Mr. Cosgrove moved; second by Mr. Baud to pursue this course of action. Unanimous decision

2. MERS - Tower- Imaging Invoices

This item concerned invoices charged to the MERS administration fund in order to allow the MERS staff to access Tower / Imaging and to store MERS documents on Tower / Imaging. Ms. Kemp had discovered that although the invoices had been paid access had not been provided. Ms. Halpin met with the Comptroller about the situation. She was also in contact with the vendor. She is working with the vendor to provide the services and access. There was discussion about some possible repayment to the MERS fund if all the services could not be provided. Ms. Halpin will advise the subcommittee on the progress of this item. No action was taken on this item.

3. MERS: Valuation / Experience Schedule (2012/2013)

The subcommittee discussed the upcoming MERS (full) valuation and the experience study (2013). Ms. Kemp was requested to include the MERS valuation on the subcommittee "work list" and to obtain some GASB 45 information from Buck. Mr. Baus moved that Buck should prepare the upcoming "full" valuation using both the current and the proposed asset method; second by Mr. Poulin. Unanimous decision

4. The Spouse Election - PADRO/Divorce Issue

This issue concerns divorced former spouses and the "waiver" of current spouses if the domestic relations order gives the former spouse a survivor option. There was a spirited discussion on this item. Mr. Poulin had proposed a solution where spouses could be given pro-rated options based upon the date of divorce. Ms. Kemp was to bring back this proposal to Division staff for its review and comment. Ms. Kemp would advise the subcommittee of the feedback and comments. Mr. Cosgrove moved, second by Mr. Greatorex to table this item until Ms. Kemp could obtain staff review. Unanimous decision

Mr. Casella moved to adjourn at 4:35 p.m.; second by Mr. Cosgrove. Unanimous decision

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