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

April 16, 2009

TRUSTEES PRESENT
Peter R. Blum, Chairman
Bob Baus
Steve Caliendo
Charles Casella
Richard Cosgrove
Thomas Culley
Paul Fortier
Steve Greatorex
Sal Luciano
Mary Marcial
Ronald McLellan
Claude Poulin
Robert Coffey
ABSENT
Sandra Fae Brown-Brewton
Linda Yelmini
Jeffrey Smith, Municipal Liaison

OTHERS PRESENT
Mark Ojakian, Deputy State Comptroller & Director, Retirement Services Division
Helen Kemp, Assistant Director, Counsel for the Retirement Services Division
Colin Newman, Assistant Director, Retirement Services Division
Jeanne Kopek, Assistant Director, Retirement Services Division
Karen Buffkin, Counsel for the State Comptroller
Peggy Gray, Executive Assistant, Retirement Services Division
Attorney Michael Rose, Rose Kallor, LLC

GUESTS

George Spurlock

CALL TO ORDER

The Chairman called the meeting to order at 9:06 a.m.

CHAIRMAN'S REPORT

The matter in which the Commission was dealing with in Superior Court is finally settled.
Colin Newman will report updated numbers to the Court before the document is signed
in Judges' chambers on April 27, 2009.
The Actuarial Subcommittee met yesterday on the Benefits Statement. The information is contained in Item #3 of the Subcommittee Reports. The Actuarial Subcommittee is also working in the RFP for Actuarial Services. They will have a recommendation some time in May.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORT

Administrative

The Deputy State Comptroller, Mark Ojakian reported on Pending Disability applications as of March 31, 2009. There are 60 applications pending review, 342 applications were reviewed and are waiting for information. 154 applications were denied. At the present time, we are reviewing March 2009 cases. We have received 32 applications, 25 applications were placed on the agenda and 18 applications were approved.

The Deputy State Comptroller, Mark Ojakian also reported that the current backlog of Connecticut Municipal Employees Retirement Systems (CMERS) accounts to be recalculated is approximately 3,599 applications having recalculated 110 applications in March 2009.

Following the close of the March 2009 retirement payroll, the current backlog of unfinalized retirement records is approximately 6,558. The Division processed 168 new retirees (145 normal, 23 disabilities) to the payroll. Finalizations for the month were 83. Total numbers of files completed for the month totaled 251.

Commission members expressed a desire to send a letter to the Governor requesting that additional staff needs to handle any new incentive be granted. Chairman Blum will generate a letter on behalf of the Commission.

1. REQUEST COMMISSION APPROVAL OF THE MARCH 10, 2009 MINUTES

Mr. Luciano moved, seconded by Mr. Poulin to approve the March 19, 2009 minutes as amended to reflect that Sandra Fae Brown-Brewton, Colin Newman and Jeanne Kopek were all present at the meeting. All voted in favor.

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM AND TRAVEL EXPENSE REIMBURSEMENT

Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement Commission Chairman's per diem and travel expenses reimbursements. All voted in favor.

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF MARCH 2009.

Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Service retirements of March 2009. All voted in favor.

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF MARCH 2009

Mr. Luciano moved, seconded by Mr. Poulin to approve the Employees Retirement System Voluntary Pending Disability Retirements for the month of March 2009. All voted in favor.

Unanimous Decision

5. REQUEST COMMISSION REVIEW OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF MARCH 2009 APPROVED BY THE MEDICAL EXAMINING BOARD AS OF FEBRUARY 28, 2009

Mr. Luciano moved, seconded by Mr. Poulin to accept the Employee Retirement System Disability Retirements approved by the Medical Examining Board as of February 28, 2009. All voted in favor.

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF MARCH 2009.

Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System Retroactive Retirements for the month of March 2009. All voted in favor.

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF MARCH 2009.

Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Pre Retirement Death Benefit Retirements for the month of March 2009. All voted in favor.

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS.

Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut Probate Judges and Employees Retirement System Retirements. All voted in favor.

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM SPOUSE RETIREMENTS.

Mr. Luciano moved, seconded by Mr. Poulin to approve the Judges, Family Support
Magistrates and Compensation Commissioners Retirement System Spouse Retirements.
All voted in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM SPOUSE RETIREMENTS.

Mr. Luciano moved, seconded by Mr. Poulin to approve the Judges, Family Support Magistrates and Compensation Commissioners Retirement System Spouse Retirements. All voted in favor.

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH OF MARCH 2009.

Mr. Luciano moved, seconded by Mr. Cosgrove to approve the Connecticut Probate Judges and Employees Retirement Fund Personal Expenses for the month of March 2009. All voted in favor.

Unanimous Decision

12. REQUEST COMMISSION ACCEPTANCE OF THE RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD FROM ITS MEETING OF MARCH 27, 2009 RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM.

Mr. Luciano moved, seconded by Mr. Fortier to accept the Medical Examining Board's recommendation relative to applications for disability retirement received from the Municipal Employees Retirement System. All voted in favor.

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS.

Mr. Luciano moved, seconded by Mr. Fortier to approve the Municipal Retirements System Retirements. All voted in favor.

Unanimous Decision

14. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEES PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS.

Mr. Luciano moved, seconded by Mr. Casella to approve the State Employees Retirement Commission Management Trustee's per diem and travel expenses reimbursements. Mr. Baus abstained.

Majority Decision

15. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS

Mr. Luciano moved, seconded by Mr. Casella to approve the State Employees Retirement Commission Union Trustee's per diem and travel expenses. Mr. Poulin abstained.

Majority Decision

16. REPORT OF STATE EMPLOYEES RETIREMENT SYSTEM EXPENSES FOR CURRENT FISCAL YEAR AS REQUESTED BY COMMISSION TRUSTEES.

Mr. Greatorex would like to see the Milliman contract amount and running expenses so the Commission could track what is being spent. Chairman Blum in addition would like to see copies of the bills to see what is being paid. Deputy Comptroller Ojakian said the Division staff would develop a way to keep Commission members up to date, including the scope of services and the amount spent to date. Mr. Casella would like the same to apply for SERS and MERS actuarial services

Mr. Luciano moved, seconded by Mr. Casella to accept the report for current fiscal year as requested by the Commission Trustees. All voted in favor.

Unanimous Decision

ITEM FOR DISCUSSION AND APPROVAL IS FOR THE MERS AND SERS ACTUARIES TO PREPARE UPDATED OPTION FACTOR TABLES FOR THEIR RESPECTIVE SYSTEMS WHICH REFLECT THE NEW ASSUMPTIONS AND MORTALITY TABLES; AND SOLELY WITH REGARD TO THE MERS SYSTEM, TO UPDATE THE EARLY RETIREMENTS FACTORS.

Moved by Mr. Baus, seconded by Mr. Poulin to adopt new option factor tables, which have not been updated in 20 years, effective July, 2009 and for the period from July 1, 2009 through December 31, 2009 to calculate benefits using both the old and new factors to provide members with the highest benefits. All voted in favor.

Unanimous Decision

TABLED MATTER:

AGENDA ITEM # 16, JUNE 19, 2008- REQUEST RECEIVED FROM MR. ROBERT EDDY THAT THE COMMISSION REVIEW AND RECONSIDER ITS AUGUST 25, 2005 DENIAL OF HIS REQUEST THAT THE SURVIVOR OPTION UTILIZED IN THE CALCULATION OF THIS BENEFIT SHOULD BE BASED ON HIS ACTUAL AGE AS OF HIS APRIL 1, 2003 RETIREMENT.

Moved by Mr. Luciano, seconded by Mr. Casella that the request be denied. All voted in favor.

Unanimous Decision

ADDENDUM ITEM:

THE ACTUARIAL SUBCOMMITTEE MOVED TO RECOMMEND THAT THE RETIREMENT COMMISSION INVITE CUSTOM COMMUNICATIONS TO ENTER INTO A CONTRACT FOR THE EMPLOYEE BENEFIT STATEMENTS SUBJECT TO THE SUCCESSFUL NEGOTIATIONS OF THE CONTRACT.

Chairman Blum said there were a few items still to be worked out that would show progressive savings to the State during the life of the contract.

Deputy Comptroller Mark Ojakian asked that the wording reflect that it is the State Comptroller who is the signator on the contract and it should read that the State Comptroller will enter into an agreement with Custom Communications.

Mr. Luciano moved, seconded by Mr. Greatorex to reflect the language changes requested. All voted in favor.

Unanimous Decision.

17. EXECUTIVE SESSION ON PENDING LEGAL MATTERS. ATTORNEY ROSE WILL ATTEND THIS SESSION AT 10:15 AM

Mr. Casella moved, seconded by Mr. Poulin to go into EXECUTIVE SESSION to discuss matters concerning Longley at 10:00 AM. All voted in favor

Unanimous Decision

At 10:32 AM a motion was made by Mr. Luciano, seconded by Mr. Baus to come out of Executive Session. All voted in favor.

Mr. Luciano moved, seconded by Mr. Baus to accept the following motion:

The Connecticut State Employee Retirement Commission resolves and directs the Retirement Division to calculate and award increased benefits for all individuals who retired on or after October 2, 2001, or who retired prior to that date, but whose pension was not yet finalized by said date, in order to fully conform with the Court's ruling in Longley v. State of Connecticut, 284 Conn. 149, decided October 2, 2007. Mr. Fortier was not present for the vote.

Majority Decision

Chairman Blum asked Deputy State Comptroller Mark Ojakian to make sure those people affected by the decision are sent a letter as soon as possible to make them aware that their calculations will be changing.

MOTION TO ADJOURN

Mr. Baus moved, seconded by Mr. Poulin to adjourn the meeting. All voted in favor. The Chairman adjourned the meeting at 10:46 AM.

______________________________
Peter R. Blum. Chairman
State Employees Retirement Commission

_________________________________
Mark E. Ojakian, Deputy State Comptroller, and Retirement Division Director

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