Retirement Division October 16, 2008 MINUTES of the Special Meeting of the Retirement Commission

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

October 16, 2008

TRUSTEES PRESENT
Peter R. Blum, Chairman
Bob Baus
S. Fae Brown-Brewton
Steve Caliendo
Charles Casella
Robert Coffey
Thomas Culley
Paul Fortier
Steve Greatorex
Mary Marcial
Ronald McLellan
Claude Poulin
Linda Yelmini

ABSENT
Richard Cosgrove
Sal Luciano
Jeffrey Smith, Municipal Liaison

OTHERS PRESENT
Dr. Thomas Woodruff, Director, Retirement Services Division
Margaret Haering, Assistant Director, Retirement Services Division
Helen Kemp, Assistant Director, Counsel for the Retirement Services Division
Jeanne Kopek, Assistant Director, Retirement Services Division
Colin Newman, Assistant Director, Retirement Services Division
Joseph Lantieri, Retirement & Benefits Services Division, Disability Unit
Jean Reid, Division Accountant, Retirement & Benefits Services Division
Diane Ruggia, Executive Assistant, Retirement Services Division
Karen Buffkin, Counsel for the State Comptroller

GUESTS

George Spurlock, Connecticut Employees Union Independent

CALL TO ORDER

The Chairman called the meeting to order at 9:10 a.m.

The Chairman reminded the Trustees of the upcoming Investment subcommittee meeting which will take place October 1, 2008 at 2:00 p.m.

On behalf of the Commission, the Chairman extended condolences to Diane Ruggia for her recent loss, noting thanks for her continued support in serving the Division and the Commission throughout her difficult time.

With regard to the Legal/Personnel Subcommittee, the Chairman updated the Trustees on the case concerning the Longley matters. The Chairman noted that the Trustees will be receiving a personal and confidential letter from the attorney regarding various matters in the case as well as his defense in the federal class action suit. The Chairman noted that all of the Trustees have been named in the suit.

Regarding other suits, the appeal from the Superior Court in Rockville is not going forward until a transcript is received. Once it is received, the attorney has 45 days to write a brief. To date there has been no word that a transcript has been received, therefore it will remain on hold.

The Chairman reported on the Freedom of Information hearing, noting nothing to report. Also the selection committee has eliminated two of the six firms to be interviewed as they showed visible conflicts of interest. Interviews of the remaining four will be held between November 20 - 24th.

DIVISION DIRECTOR'S ADMINISTRATIVE AND SUBCOMMITTEE REPORT

Administrative

The Director addressed tab items #21 and #22 of the agenda; notices that pertain to the Comptroller's website. The memos state the changes and enhancements to the site with regard to the enhancements of the internet site as well as the MERS site. The Director noted thanks and praise to Helen Kemp for spearheading the project, and Jeanne Kopek for her hard work and contributions to the enhancement of the site.

The Director updated the Trustees with regard to the Investment Advisory Council Meeting, noting that the investment performance has been grim as a result of the recent market; the fund is down
15% - 16% as of the last week of June, and have not improved since. The Director noted that the ARP and Defined Contribution Plans are down as well; with an increase in the Stable Value Fund as a result of transferring from other funds.

The Director reported that there have been 39 appearances by ING to state agencies starting Monday as well as 40 seminars throughout the state.

The Director reported that the current backlog of unfinalized State Employees Retirement System (SERS) accounts is approximately 6,674 with 85 new retirees for the month; consisting of 76 normal retirements and 9 disability retirements; 104 applications were finalized, total number of retirement files completed for the month totaled 189; 24 new disability applications were received and 25 applications were put on the Medical Examining Board agenda; 13 disability applications were approved. Currently, there are 18 disability applications pending, 328 incomplete applications, and 170 denied applications with a total of 516 pending / incomplete disability applications as of September, 2008.

Subcommittees

Purchase of Service and Other Related Matters Subcommittee will hold a meeting on November 20, 2008 to address 12 - 15 cases.

Investment Subcommittee reports that the Real Estate Investment Fund has been added, Vanguard has been eliminated, and the Social Choice Investment has been moved to TIAA-CREF planning on a January 1, 2009 transition.

Actuarial Subcommittee met yesterday and agreed that Milliman the final State Employees Retirement System valuation to be submitted for the November Commission meeting. A teleconferencing meeting has been scheduled for November 12, 2008 to discuss the Judges' valuation, also to be submitted for the November Commission meeting.

Regulations Subcommittee will establish a meeting date for November to discuss regulations and requests for waiver of over payments. There are no cases of outstanding payment waiver requests to date.

1. REQUEST COMMISSION APPROVAL OF THE SEPTEMBER 18, 2008 MINUTES

Mr. Baus moved, seconded by Mr. Poulin to approve the September 18, 2008 minutes. 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. Baus 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 SEPTEMBER 2008

Mr. Baus moved, seconded by Mr.Poulin to approve the State Employees Retirement System service retirements for the month of September 2008. All voted in favor.

Unanimous Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING DISABILITY RETIREMENTS FOR THE MONTH OF SEPTEMBER 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the State Employees Retirement System voluntary pending disability retirements for the month of September 2008. All voted in favor.

Unanimous Decision

5. REQUEST COMMISSION REVIEW OF THE STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF SEPTEMBER 2008 APPROVED BY THE MEDICAL EXAMINING BOARD AS OF AUGUST 31, 2008

Mr. Baus moved, seconded by Mr. Poulin to note and accept the State Employees Retirement System disability retirements for the month of September 2008 approved by the Medical Examining Board as of August 31, 2008. All voted in favor.

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF SEPTEMBER 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the State Employees Retirement System retroactive retirements for the month of September 2008. 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 SEPTEMBER 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the State Employees Retirement System pre retirement death benefit retirements for the month of September 2008. All voted in favor.

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS

Mr. Baus moved, seconded by Mr. Poulin to approve the Municipal Retirement System Retirements. All voted in favor.

Unanimous Decision

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

Mr. Casella moved, seconded by Mr. Greatorex to approve the State Employees Retirement Commission Management Trustee's per diem travel expenses reimbursements. All voted in favor.

Voting in favor of the motion: Ms. Brown-Brewton, Mr. Caliendo, Mr. Casella, Mr.
Coffey, Mr. Culley, Mr. Fortier, Mr. Greatorex, Ms. Marcial, Mr. McLellan, Mr. Poulin and Ms. Yelmini.

Abstaining: Mr. Baus

Majority Decision

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

Ms. Yelmini moved, seconded by Mr. Casella to approve the State Employees Retirement Commission Union Trustee's per diem travel expenses reimbursements. All voted in favor.

Voting in favor of the motion: Mr. Baus, Ms. Brown-Brewton, Mr. Caliendo, Mr. Casella, Mr. Coffey, Mr. Culley, Mr. Fortier, Mr. Greatorex, Ms. Marcial, Mr. McLellan, and Ms. Yelmini.

Abstaining: Mr. Poulin

Majority Decision

11. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONAL EXPENSES FOR THE MONTH OF SEPTEMBER 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the Connecticut Probate Judges and employees retirement fund personal expenses for the month of September 2008. All voted in favor.

Unanimous Decision

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

Mr. Baus moved, seconded by Mr. Poulin to approve the Connecticut Probate Judges and Employees
Retirement system retirements. All voted in favor.

Unanimous Decision

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

Mr. Baus moved, seconded by Mr. Poulin to approve the Judges, Family Magistrates and Compensation Commissioners Retirement System retirements. At the All voted in favor.

Unanimous Decision

14. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT JUDGES' FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT FUND BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the Connecticut Judges' Family Support
Magistrates and Compensation Commissioners Retirement Fund Balance Sheet and Statement of
Operations for fiscal year ending June 30, 2008. All voted in favor.

Unanimous Decision

15. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT SYSTEM BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the State Employees Balance Sheet and
Statement of Operations for fiscal year ending June 30, 2008. All voted in favor

Unanimous Decision

16. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the Probate Judges and Employees Retirement
Fund Balance Sheet and Statement of Operations for fiscal year ending June 30, 2008.
All voted in favor.

Unanimous Decision

17. REQUEST COMMISSION APPROVAL OF THE PUBLIC DEFENDERS RETIREMENT FUND BALANCE SHEET AND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2008

Mr. Baus moved, seconded by Mr. Poulin to approve the Public Defenders Retirement
Fund Balance Sheet and Statement of Operations for fiscal year ending June 30, 2008.
All voted in favor

Unanimous Decision

18. REQUEST COMMISSION APPROVAL OF THE PARTICIPATION OF THE TOWN OF WEST HAVEN FIRE DEPARTMENT IN THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM EFFECTIVE JANUARY 1, 2009

Mr. Baus moved, seconded by Mr. Poulin to approve the Probate Judges and Employees Retirement
Fund Balance Sheet and Statement of Operations for fiscal year ending June 30, 2008.
All voted in favor

Unanimous Decision

19. REQUEST COMMISSION CONSIDERATION OF THE OCTOBER 7, 2008 RECOMMENDATIONS RECEIVED FROM ITS SUBCOMMITTEE ON HAZARDOUS DUTY SERVICE CREDIT

(1) Deputy Director of Parole and Community Services.

Mr. Casella moved, seconded by Ms. Yelmini, to accept the recommendation of its subcommittee to approve the Department of Correction's request for coverage under the hazardous duty provisions of the State Employees Retirement System and the consequent inclusion in the hazardous duty appendix of the Deputy Director of Parole and Community Services classification.
All voted in favor.

Unanimous Decision

The above recommendation was adopted in accordance with the following findings of the subcommittee:

The hazardous duty provisions of SERS provide that DOC employees in classifications exempt from collective bargaining must engage in custodial or instructional duties in order to receive hazardous duty credit for such employment.

Based upon its review of the information provided Dan Callahan and the testimony provided by incumbents Elaine Pacheco and Joseph Haggan, the Subcommittee determined that the duties of Deputy Director of Parole and Community Services at DOC meet the standard of custodial or instructional duties within the meaning of the hazardous duty provisions of the CGS.

(2) Albert Angeloni.

Mr. Casella moved, seconded by Ms. Yelmini, to accept the recommendation of its subcommittee to approve Mr. Angeloni's request for coverage under the hazardous duty provisions of SERS for his service at DOC as a Correctional Services Manager (Commissary).
All voted in favor.

Unanimous Decision

The above recommendation was adopted in accordance with the following findings of the subcommittee:

Based upon its review of the information provided by provided Dan Callahan and the testimony provided by Mr. Angeloni, the Subcommittee determined that Mr. Angeloni did engage in custodial or instructional duties within the meaning of the hazardous duty provisions of SERS while performing the duties of Correctional Services Manager (Commissary) at DOC.

(3) Douglas Sauer.

Mr. Casella moved, seconded by Ms. Yelmini, to accept the recommendation of its subcommittee to approve Mr. Sauer's request for coverage under the hazardous duty provisions of SERS for his service at DOC as a Correctional Services Manager (Commissary).
All voted in favor.

Unanimous Decision

The above recommendation was adopted in accordance with the following findings of the subcommittee:

Based upon its review of the information provided by provided Dan Callahan and the testimony provided by Mr. Sauer, the Subcommittee determined that Mr. Sauer did engage in custodial or instructional duties within the meaning of the hazardous duty provisions of SERS while performing the duties of Correctional Services Manager (Commissary) at DOC

20. REQUEST COMMISSION REVIEW AND RECONSIDERATION OF ITS OCTOBER 19, 2006 DENIAL OF HER REQUEST TO RECEIVE RETIREMENT CREDIT FOR HER PRIOR CONTRACTUAL SERVICE

Laurie W. Etter was hired on July 1, 1993 as the chaplain at the Connecticut Correctional Institution, Niantic (Department of Corrections); she immediately joined Tier II in the State Employees Retirement System (SERS). On May 30, 2001 Etter requested to receive retirement credit in Tier II for contractual work she rendered pursuant to personal services agreements (PSA's) from October 1, 1979 to June 30, 1993.

Upon review of the evidence submitted, the Retirement Services Division (Division) noted that the contractor identified in all of the PSA's was the Niantic Community Church. The Retirement Commission standard requires that the contractual arrangement exist between the State of Connecticut and the individual claiming retirement credit. The Division on behalf of the Retirement Commission advised Etter by letter dated March 20, 2002 that there was no provision within SERS that would allow her to obtain retirement credit for service to a private entity by letter dated June 23, 2006.

Ms. Etter requested that the Subcommittee on Purchase of Service and Related Matters give reconsideration to her earlier request. Pursuant to the request for reconsideration the Division by letter dated August 10, 2006 notified Ms. Etter that her claim would be placed on the agenda of the next meeting of the Subcommittee on Purchase of Service and Related Matters scheduled for September 20, 2006.

Ms. Etter asserted that the Department of Correction had recognized her of having performed twenty-five years of service in August 2005 and therefore felt that she should have received thirteen years of retirement credit for her prior contractual service. The Subcommittee unanimously recommended denial of Ms. Etter's request finding that her case did not feature the Retirement Commission standard requiring the contractual arrangement exist between the State of Connecticut and Ms. Etter.

At its October 19, 2006 meeting, the Retirement Commission unanimously adopted the recommendation of its Subcommittee to deny Etter's claim. By letter dated March 27, 2008, Etter requested that the Retirement Commission review and reconsider its denial. Accordingly the Division scheduled a hearing before the Retirement Commission.

At its October 16, 2008 meeting, the Retirement Commission following discussion determined that Ms. Etter's appearance was not necessary. In that connection, Mr. McLellan moved, seconded by Mr. Baus to approve Ms. Etter's request that she receive retirement credit in SERS for her prior contractual service from October 1, 1979 to June 30, 1993. All voted in favor.

Unanimous decision

DISCUSSION (no action taken)

21. MEMO REGARDING RETIREMENT AND BENEFITS DIVISION INTERNET INFORMATION (attached)

22. MEMO REGARDING CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM ANNOUNCEMENT OF THE LAUNCH OF ITS NEW WEBSITE (attached)

23. MEMO REGARDING THE UPDATING AND REDISIGNING OF THE RETIREMENT AND BENEFIT SERVICES DIVISION FORMS (attached)

24. CONNECTICUT RETIREMENT PLANS AND TRUST FUNDS (attached)

At this juncture, Mr. Fortier moved, seconded by Mr. McLellan to enter into Executive Session at 10:20 a.m. Division staff was excluded from attending the executive session. All voted in favor.

Unanimous Decision

Ms. Yelmini moved, seconded by Ms. Brown - Brewton to go out of executive session at 11:05 a.m. No action or motion necessary during executive session. All voted in favor.

Unanimous Decision

ADJOURNMENT

Ms. Brown - Brewton moved, seconded by Mr. McLellan to adjourn the meeting.
All voted in favor.
: The Chairman adjourned the meeting at 11:50 a.m.

______________________________
Peter R. Blum. Chairman
State Employees Retirement Commission

_________________________________
Thomas C. Woodruff, Ph.D., Director

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