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

March 15, 2012

TRUSTEES PRESENT
Peter R. Blum
Bob Baus
Charles Casella
Sal Luciano
Claude Poulin
Steve Greatorex
Sandra Fae Brown-Brewton
James Dzurenda
Robert Coffey
Richard Cosgrove
Ronald McLellan
Linda Yelmini
Paul Fortier
Michael Carey
Thomas Culley

EX OFFICIO MEMBERS
Deputy Comptroller Martha Carlson, Designee for State Comptroller Kevin Lembo
Lee Ann Palladino, CIO, Designee for State Treasurer Denise Nappier

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Attorney Helen Kemp, Asst. Director and Division Counsel, Retirement Services Division
Colin Newman, Assistant Director, Retirement Services Division
Jeanne Kopek, Assistant Director, Retirement Services Division
Peggy Gray, Executive Secretary, Retirement Services Division
Natalie Braswell, Assistant State Comptroller
Thomas Woodruff, Director, Benefits Services Division
Margaret Haering, Asst. Director, Benefits Services Division

GUESTS
Mary Beth Braitman, Ice Miller,LLP
Katrina Clingerman, Ice Miller, LLP

CALL TO ORDER
The Chairman called the Commission to order at 9:04 am

DIVISION DIRECTOR'S ADMINISTRATIVE REPORT

I have provided a listing of pending legislation that is of concern to the Retirement Services Division.

Following the close of the March 2012 retirement payroll, the current backlog of unfinalized retirement records is approximately 13,022. The Division processed 88 new retirees (78 normal, 10 disabilities) to payroll for March. Finalizations for the month were 200.

Pending Disability Applications as of February 29, 2012

The next available meeting for scheduling is June 2012.

Earlier this week we attended an Oracle presentation on a Pension Administration Module for a possible future solution for the division.

We are taking the steps necessary with ING and Shipman & Goodwin to amend the ARP Plan Document with regards to the transfer from ARP to the Hybrid Plan as outlined in the SEBAC 2011 Agreement.

And finally I want to bring to your attention the costs associated with the interim actuarial valuation. In the documentation for this months meeting you were provided with the SERS Expense report for February 2012. The costs for the interim actuarial valuation have been paid from SERS general consulting funds since the contract with CavMac only provides for two full biennial valuations. The contract costs for each SERS valuation is a set fee of $80,000. In February we paid CavMac $63,150 in funds for work associated with the interim valuation. The invoice for services in January is another $21,996.00 that will bring the total cost for the interim valuation with the additional changes to over $85,000.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE FEBRUARY 16, 2012 MINUTES Mr. Luciano moved, seconded by Mr. Greatorex to approve the February 16, 2012 minutes. All voted in favor

Unanimous Decision

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

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Service retirements for the month of February 2012. All voted in favor

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Voluntary Pending Disability retirements for the month of February 2012. All voted in favor Unanimous Decision

5. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM PRE RETIREMENT DEATH BENEFIT RETIREMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Pre Retirement Death Benefit retirements for the month of February 2012. All voted in favor

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Poulin to approve the State Employees Retirement System Disability retirements for the month of February 2012. All voted in favor

Unanimous Decision

7. REQUEST COMMISSION ACCEPTANCE OF THE RECOMMENDATIONS OF THE MEDICAL EXAMINING BOARD FROM ITS MEETING ON February 17, 2012 RELATIVE TO APPLICATIONS FOR DISABILITY RETIREMENT RECEIVED FROM THE MUNICIPAL EMPLOYEES RETIREMENT SYSTEM Mr. Luciano moved, seconded by Mr. Poulin to accept the recommendations of the Medical Examining Board from its meeting on February 17, 2012 relative to applications for Disability Retirement received from the Municipal Employees Retirement System. All voted in favor

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement System Retroactive retirements for the month of February 2012. All voted in favor

Unanimous Decision

9.REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the Connecticut Probate Judges and Employees Retirement System retirements for the month of February 2012. All voted in favor

Unanimous Decision

10.REQUEST COMMISSSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Poulinto approve the Connecticut Probate Judges and Employees Retirement Fund Personnel expenses for the month of February 2012. All voted in favor

Unanimous Decision

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

12.REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF JANUARY AND FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Management Trustee's Per Diem and Travel expenses reimbursements for the month of January and February. All voted in favorMr. Baus abstained

Majority Decision

13.REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEE RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS FOR THE MONTH OF FEBRUARY 2012 Mr. Luciano moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Union Trustee's Per Diem and Travel expenses reimbursements for the month of February 2012. All voted in favor Mr. Poulin abstained

Majority Decision

14.REQUEST COMMISSION APPROVAL OF RECOMMENDATIONS RECEIVED FROM ITS INVESTMENT SUBCOMMITTEE ON INVESTMENT ADVISORY SERVICE FOR MEMBERS OF ALTERNATE RETIREMENT PROGRAM Dr. Woodruff spoke to this agenda item. They have been working very closely with ING and Morningstar for portfolio advice for State Employees. They have developed 8 models, they will start with 3, to make it easier to understand options, starting with employees closest to retirement. Mr. Luciano moved, seconded by Mr. Greatorex to approve the recommendations received from its Investment Subcommittee on an Investment advisory service for members of the Alternative Retirement Program.
All voted in favor

Unanimous Decision

15.HEARING ON REMAND FROM THE COURT TO CONSIDER THE SOLE ISSUE OF WHETHER PRIOR TO 1992 DANIEL MICARI WAS GIVEN NOTICE THAT THERE WAS AN OPPORTUNITY TO SEEK SERVICE CREDIT FOR EMPLOYMENT WITH ANOTHER STATE Mr. Luciano moved, seconded by Mr. Greatorex to table this item to the April Commission meeting. All voted in favor

Unanimous Decision

At 9:33 a.m. Mr. Luciano moved , seconded by Mr. Greatorex for The Commission to enter into Executive Session to discuss Items # 16 and #17. With Attorney Helen Kemp remaining in the room.

16.REQUEST COMMISSION APPROVAL OF THE PROPOSED DECLARATORY RULING IN THE MATTERS OF BOUCHARD, FOX, MALONE TO BE ISSUED PRIOR TO APRIL 16, 2012 IN ACCORDANCE WITH SECTIONS 5-155-1(e)(1)(A) OF THE REGULATIONS OF CONNECTICUT STATE AGENCIES At 9:55 a.m. the Commission came out of Executive Session. Mr. Casella moved, seconded by Mr. Luciano to approve the proposed Declaratory Ruling in the matters of Bouchard, Fox, Malone to be issued prior to April 16, 2012 in accordance with Sections 5-155-1(e)(1)(A) of the Regulations of Connecticut State Agencies. All voted in favor

Unanimous Decision

At 10:02 a.m. The Commission went into Executive Session to discuss item #17. Attorney Helen Kemp and Director Brenda Halpin remaining in the room.

17.DISCUSSION WITH OUTSIDE LEGAL COUNSEL AS TO ISSUES, STRATEGY AND POSSIBLE ACTION ON PLAN ADMINISTRATION AND QUALIFICATION UNDER SECTIONS 401(a) AND 415 At 11:32 a.m. Mr. Casella moved, seconded by Mr. Poulin to come out of Executive Session. No motion was made on this item, it was for presentation purposes only.

TABLED MATTER

18. REQUEST COMMISSION CONSIDERATION OF A TABLED MATTER FROM THE FEBRUARY 15, 2012 MEETING REGARDING SHERI SILVERMAN'S REQUEST A motion was made by Ms. Yelmini, seconded by Mr. Luciano for purposes of discussion only. Following the discussion the Trustees determined to table the matter of the Division's practice with respect to 10-month employees and refer it back to the Subcommittee on Purchase of Service and Related Matters. A motion was made by Mr. Casella, seconded by Ms. Yelmini to deny Ms. Silverman's request that she be granted the three additional years of credited service under the 2009 Retirement Incentive Program. All voted in favor

Unanimous Decision

ADJOURNMENT Ms. Fae Brown-Brewton moved, seconded by Mr. McLellan to adjourn the meeting at 11:36 a.m. All voted in favor

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