Retirement Division February 18, 2010 MINUTES of the Meeting of the Retirement Commission

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

February 18, 2010

TRUSTEES PRESENT

Peter R Blum, Chair
Bob Baus
Steve Caliendo
Charles Casella
Thomas Culley
Ronald McLellan
Claude Poulin
Linda Yelmini
Sal Luciano
Steve Greatorex
Sandra Fae Brown-Brewton
James Dzurenda
Robert Coffey

ABSENT

Paul Fortier
Richard Cosgrove

OTHERS PRESENT

Mark Ojakian, Deputy Comptroller and Division Director
Craig Henrici, Counsel to the State Comptroller
Jeanne Kopek, Asst. Director, Retirement Services
Helen Kemp, Division Attorney and Asst. Director, Retirement Services
Colin Newman, Asst. Director, Retirement Services
Gregory Franklin, Office of the State Treasurer
Peggy, Executive Assistant, Retirement Services

CALL TO ORDER

The Chairman called the meeting to order at 9:06 AM

CHAIRMAN'S REPORT

The Chairman had nothing of note to report. There has been no word on the matter pending before the Federal Court.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORTS

The Deputy Comptroller introduced Craig Henrici. Craig is the new General Counsel to the Comptroller and will be working closely with the Retirement Commission also.

As of January 31, 2010 the pending disability applications are as follows:
There are 45 applications pending review, 24 applications were received for the month, 31 applications were placed on the agenda and 20 applications were approved. Reviews are done in chronological order and as such either the cases are scheduled for the Medical Examining Board's review or medical documentation is being requested. The next available meeting is July 2010. We have lost some members of the MEB. We are looking to UConn and reaching out to once again have a full Board and hopefully reduce the backlog. The MEB continues to meet every three weeks.

Following the close of the February 2010 Retirement payroll, the current backlog of unfinalized Retirement records is approximately 10, 559. The Division processed 86 new retirees to the payroll (68 normal, 18 disabilities) Finalizations for the month were 89.

As you know the search for the new Division Director has begun. There is a member of SEBAC and a Management member of the Retirement Commission on the Selection Committee. The resumes have been coming in. It is a rolling process, there is no closing date and the search will continue until the best candidate is chosen.

The Investment Subcommittee RFP for the Defined Contribution Plan met yesterday. We have asked for additional information. Following receipt of the information, I will then brief the State Comptroller and the Retirement Commission.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE JANUARY 14, 2010 MINUTES.
Mr. Luciano moved, seconded by Mr. Poulin the minutes were approved with the correction
of Mr. Caliendo's name on the last page of the minutes. All voted in favor.

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT
COMMISSION CHAIRMAN'S PER DIEM EXPENSES REIMBURSEMENTS.
Mr. Luciano moved, seconded by Mr. Baus to approve the Chairman's Per Diem expenses.
All voted in favor except for Ms. Yelmini.

Majority Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT
SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF JANUARY 2010.
Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the Retirement System
Service retirements for the month of January 2010. All voted in favor.

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT
SYSTEMS VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH
OF JANUARY 2010. Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the
Retirement Systems voluntary pending Disability Retirements for the month of January 2010.
All voted in favor.

Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT
SYSTEM DISABILITY RETIREMENT FOR THE MONTH OF JANUARY 2010 AS
APPROVED BY THE MEDICAL EXAMINING BOARD AS OF DECEMBER 31, 2009.
Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the Employees Retirement
System Disability Retirements for the month of January 2010 as approved by the Medical
Examining Board as of December 31, 2009. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIRMENT
SYSTEMS RETROACTIVE RETIREMENTS FOR THE MONTH OF JANUARY 2010.
Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the Employees
Retirement Systems Retroactive Retirements for the month of January 2010. All voted in
favor.

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT
SYSTEMS PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH
OF JANUARY 2010. Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve
the Retirement Systems Pre Retirement Death Benefit retirements for the month of January
2010. All voted in favor

Unanimous Decision

8. REQUEST COMMISSION ACCEPTANCE OF RECOMMENDATIONS OF THE
MEDICAL EXAMINING BOARD FROM ITS MEETING ON JANUARY 15, 2010
RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED
FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM. Mr. Luciano moved,
seconded by Ms. Brown-Brewton to accept the recommendations of the Medical
Examining Board from it's meeting on January 15, 2010 relative to applications for disability
Retirement received from the Municipal Employees Retirement System. All vote in favor.

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES
AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS AS OF JANUARY 2010.
Ms. Brown-Brewton moved, seconded by Mr. Greatorex to approve the Connecticut
Probate Judges and Employees Retirement System retirements as of January 2010. All voted
in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT
MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM
RETIREMENTS. Ms Brown-Brewton moved, seconded by Mr. Greatorex to approve the
Judges, Family Support Magistrates and Compensation Commissioners Retirement System
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 DECEMBER 2009. Ms. Brown-Brewton moved, seconded by Mr. Greatorex to approve
the Connecticut Probate Judges and Employees Retirement Fund personal expenses for the
month of December 2009. All voted in favor.

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES
AND EMPLOYESS RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH
OF JANUARY 2010. Ms. Brown-Brewton moved, seconded by Mr. Greatorex to approve
the Connecticut Probate Judges and Employees Retirement Fund personal expenses for the
month of January 2010. All voted in favor.

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM
RETIREMENTS. Ms. Brown-Brewton moved, seconded by Mr. Greatorex 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.Greatorex moved, seconded by Mr. Caliendo to approve
The State Employees Retirement Commission Management Trustees Per Diem and Travel
expenses. All voted in favor. Mr. Baus abstained

Majority Decision

15. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT
UNION TRUSTEES PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS
Ms. Brown-Brewton moved, seconded by Mr. Greatorex to approve the State Employees
Retirement Union Trustees Per Diem and Travel expenses. All voted in favor. Mr. Poulin
abstained.

Majority Decision

REQUEST COMMISSION CONSIDERATION OF THE JANUARY 6, 2010 RECOMMENDATIONS RECEIVED FROM ITS SUBCOMMITTEE ON REGULATIONS AND OVERPAYMENTS FOR THE FOLLOWING INDIVIDUALS

  1. Requests for Waivers of Repayment for Overpayments

    A. Barry Beecher (MERS) - (optionee) Overpayment due to spouse (MERS member) receiving a social security disability award and spouse did not report it to MERS. Motion by Ms. Yelmini; second by Mr. Luciano to accept the subcommittee's recommendations to deny the request for the waiver of overpayment and to implement a 12 month repayment plan to recover the overpayment. Unanimous decision.

    B. Thomas Ceccarini (SERS) - Overpayment due to family Soc. Sec. Award. Motion by Mr. Luciano; second by Mr. McLellan to accept the subcommittee's recommendations to deny the request for the waiver of overpayment, however, due to unique circumstances no repayment be taken from the member during the time the minor child receives "family" social security disability. After that time or upon the death of the member, whichever is earlier, repayment will be taken at the rate of $300 per month from the member's benefit, or if deceased, from the benefit given to his contingent annuitant until the amount was been repaid. Unanimous decision.

    C. Darryl Mickey (SERS) - As a result of trial court order in a marital dissolution, the former spouse of Mr. Mickey received a greater share of Mr. Mickey's disability retirement pension than she should have received if the trial court had not erred in its division of Mr. Mickey's property interest in his pension. Mr. Mickey argued his former spouse has been unjustly enriched and that the Commission should reimburse Mr. Mickey for the portion of the pension benefit given to his former spouse as a result of the trial court's order.

    Motion by Ms. Brown-Brewton; second by Ms. Yelmini to deny Mickey's request that he is entitled to a lump sum payment under Section 5-156c to account for the alleged underpayment of his pension benefits and a lump sum payment remedying the alleged underpayment. As any underpayment would have occurred, if it did occur, only as the result of the trial court decision, then Mr. Mickey must return to the trial for relief from the former spouse and not the state employees' retirement system. Unanimous decision.

    D. Geraldine Trillo (MERS) - (optionee) Overpayment due to spouse receiving wrong benefit due to incorrect wage information from Town. Motion by Ms. Brown-Brewton ; second by Ms. Yelmini to accept the subcommittee's recommendations to deny the request for the waiver of overpayment and to recover the overpayment in a single payment. Unanimous decision.

    E. Elizabeth Turner (MERS) - (optionee) Overpayment due to spouse receiving wrong benefit due to incorrect wage information from Town. Motion by Ms. Brown-Brewton; second by Mr. Luciano to accept the subcommittee's recommendations to deny the request for the waiver of overpayment and to implement a 5 year (60 month) repayment plan to recover the overpayment. Unanimous decision.

    F. Leonard Young (MERS) - Overpayment due to receiving a social security disability award and not reporting it to MERS. Motion by Ms. Brown-Brewton; second by Mr. Luciano to accept the subcommittee's recommendations to deny the request for the waiver of overpayment and to implement a 5 year (60 month) repayment plan to recover the overpayment. Unanimous decision.
  1. Discussion - Settlement Issues Pending Sec. 5-142a Overpayment Items - Executive Session

    At approximately 9:45 a.m. a motion was made by Mr. McLellan, second by Mr. Lucianoto go into executive session to discuss settlement issues in the Michael Cozzolino and the George Brey overpayment cases.

    Mr. Casella moved, seconded by Mr. Luciano to come out of executive session at approximately 10: 00 A.M. Unanimous decision.

    Ms. Yelmini moved that the lien filed in Workers Compensation for repayment against Brey's workers compensation benefit should be withdrawn and that the Division Counsel be authorized to settle or resolve these two cases in accordance with the parameters discussed in executive session. Unanimous decision.

    REPORT ON THE RESULTS OF THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM ?"OFF YEAR" VALUATION AS OF JULY 1, 2009

    The Commission discussed that a sizeable increase in the MERS employers' contribution rate was needed due to the Fund's significant investment losses. These losses fully depleted the asset surplus that had existed for years and created a deficit. Concerned about the impact on participating employers' finances, the Commission discussed a contribution rate less than the actuarially determined annual required contribution. The Commission also discussed the expectation that a similar overall increase in the total contribution rate will be implemented next year.

    Mr. Casella moved; seconded by Mr. Luciano that for fiscal year 2011, the total contribution rate for General Employees (for both with and without Social Security) be set at 9.5%; that the total contribution rate for Police and Fire (with Social Security) be set at 13.75% and the total contribution rate for Police and Fire (without Social Security) be set at 13.5% and to keep MERS' administrative fee at $100 per employee/retiree and to keep the Police & Fire administrative fee at $40 per employee/retiree except that New Britain would be required to contribute 0.69% of payroll in addition to the administrative fee. Unanimous decision.

    ADJOURNMENT
    Ms. Yelmini moved, seconded by Mr. Casella to adjourn the meeting. All in favor.

    Meeting adjourned at 10:32 A.M.

    _____________________________
    Peter R. Blum, Chairman

    __________________________________
    Mark Ojakian, Deputy Comptroller And Division Director,Retirement Services

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