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

June 18, 2015

TRUSTEES PRESENT
Peter Adomeit, Chairman
Robert Baus
Sandra Fae Brown Brewton
Michael Carey
Charles Casella
Robert Coffey
Richard Cosgrove
Lisa Grasso-Egan
Paul Fortier
Sal Luciano
Laila Mandour
Ronald McLellan
Claude Poulin
Angel Quiros

TRUSTEES ABSENT
Stephen Greatorex

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Natalie Braswell, Assistant Comptroller
Colin Newman, Assistant Director, Retirement Services Division
Peggy Gray, Executive Secretary, Retirement Services Division

GUESTS
Christine Shaw, Deputy Treasurer
John Lender
Keith Pfanuff

CALL TO ORDER
Chairman Adomeit called the meeting to order at 9:07 a.m.

CHAIRMAN'S REPORT

He thanked Peter Blum, the outgoing Chairman for his twenty-six years of service to the Commission. He also thanked the Trustees for putting his name forward to Governor Malloy and thanked the Governor for appointing him to the Commission. He looks forward to serving with the Trustees on the Commission.

Division Director's Administrative Report

For the June retirement payroll we had 186 new retirees (160 normal, 10 disabilities, 4 voluntary pending and 12 Hybrid). We were able to finalize 18 retirement applications (10 regular and 8 disabilities) for the month.
On the ARP to Hybrid transfers we have 302 retirees, 1,498 transfers, 9 waivers and 4 prospective for a total of 1,813. The outstanding number to be audited and processed is 764. We have 15 individuals that the Division has sent an invoice for the transfer and the member has not taken action with Voya to complete the transfer. We will be following up on these applications.

Pending Disability Applications as of May 31, 2015

FOR THE MONTH OF MAY  

The next available meeting for scheduling is July 2015.

Deputy Comptroller Martha Carlson added that knowing the parties have been working on the twenty-four month review issue and in light of yesterday's Public Auditors' letter to the Governor regarding the Division's disability procedures; I'd ask that Lisa update the Commission.

Ms. Grasso-Egan stated that her office is still in negotiations with a coalition of state employee unions. These matters are for collective bargaining and we will provide an update when there is a resolution to those issues.

On behalf of the Treasurer Lee Ann Palladino offered the following statement from Treasurer Denise Nappier. For the record, I'd like to register my concerns, as the designated representative of Treasurer Nappier, concerning the Auditor's letter to the Governor dated June 17, 2015.

That letter, which detailed the Auditors' concerns over a number of breakdowns regarding the administration of disability benefits, impacts the safekeeping of the State Employees Retirement System's assets.

Treasurer Nappier is the principal fiduciary of the pension plan and, as such, must ensure the proper use of pension plan assets. Both the Auditors and the Comptroller have raised issues that require immediate resolution.

Specifically, there must be clarification of the governing statutes and how they are to be interpreted; as well as the roles and accountability of the Commission, the Office of the State Comptroller, and/or any other entities that may be in that be involved.

At the end of the day, the Board needs assurance that there is a plan of action in place to address these issues, and that going forward, there is a clear process for administering benefits in conformance with state law.

I have provided a copy of the revised recommendation on the Auditors of Public Accounts report regarding the contribution refunds. I have sent the recommendation to Robinson and Cole for review and a response. The response is incorporated in the document.

The cost to date for the court reporter at the Retirement Commission meetings since January 2015 is $2,127.80.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF THE MAY 2015 MINUTES Mr. Luciano moved, seconded by Mr. Poulin to approve the May 2015 minutes. All voted in favor

Unanimous Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN BLUM'S PER DIEM EXPENSES AND TRAVEL REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Baus to approve the State Employees' Retirement Commission Chairman Blum's Per diem expenses and travel reimbursements. All voted in favor

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION MANAGEMENT TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Cosgrove to approve the State Employees' Retirement Commission Management Trustee's Per diem and travel expenses reimbursements. All voted in favor.

Mr. Baus abstained

Majority Decision

4. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Lucian moved, seconded by Ms. Egan to approve the State Employees Retirement Commission Union Trustee's Per diem and travel expenses reimbursements. All voted in favor. Mr. Poulin abstained

Majority Decision

5. REQUEST COMMISSION REVIEW OF THE MAY BILLING FROM ROSE KALLOR
AND DISCUSSION ON WHO WILL REVIEW AND SIGN BILLS FOR PAYMENT PURPOSES
For review purposes only for billing from Rose Kallor. Chairman Adomeit will continue the practice of the Chairman reviewing the billing from Rose Kallor and of assigning work to the Attorneys to the Commission.

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF MAY 2015 Mr. Luciano moved, seconded by Mr. Cosgrove to approve the Connecticut State Employee's Retirement System Service retirements for the month of May 2015. All voted in favor.

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF MAY 2015 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employee's Retirement System Disability retirements for the month of May 2015. All voted in favor.

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM VOLUNTARY PENDING RETIREMENTS FOR THE MONTH OF MAY 2015 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employee's Retirement System Voluntary Pending retirements for the month of May 2015. All voted in favor

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM PRE-RETIREMENT DEATH BENEFITS FOR THE MONTH OF MAY 2015 Mr. Luciano moved, seconded by Mr. Poulin to approve the Connecticut State Employees Retirement System Pre-Retirement Death Benefits for the month of May 2015. All voted in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Poulin to approve the Municipal Retirement System Retirements. All voted in favor.

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR THE PAY PERIOD April 3, 2015 THROUGH May 14, 2015 Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the Connecticut Judges and Employees Retirement Fund Personnel expenses for the pay period April 3, 2015 through May 14, 2015. All voted in favor.

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS FOR MAY 2015 Mr. Luciano moved, seconded by Ms. Brown-Brewton to approve the Connecticut Probate Judges and Employees Retirement System retirements for May 2015. All voted in favor.

Unanimous Decision

TABLED ITEMS

DECISION AND DECLARATORY RULING IN THE MATTER OF MICHAEL QUINTILIANO - Still awaiting information from Mr. Quintiliano. Mr. Qunitiliano informed the Division that he just completed the paperwork and will be sending it in to the Division. Item tabled to the July meeting.

CASERTANO REQUEST FOR RECONSIDERATION Mr. Luciano moved, seconded by Mr. Carey that the Division continue past practice and deny Mr. Casertano's request. All voted in favor.

Unanimous Decision

EXECUTIVE SESSION

Mr. Luciano moved, seconded by Ms. Mandour to enter into Executive Session at 9:23 a.m. Only Trustees were present. Deputy Comptroller Carlson, Assistant Comptroller Braswell and Director Halpin left the room for discussion on Brown v. SERC (OPH) Recommendations to full Commission on defense and strategy.

At 9:29 a.m. Deputy Comptroller Carlson, Ms. Braswell and Director Halpin were invited back into the room to discuss the rest of the agenda items.

Sampieri v. SERC -pending litigation
Alston v. SERC- pending litigation
Maturo -pending litigation
Cruz-Aponte- pending litigation

At 10:12 a.m. the Trustees came out of Executive Session. No motions were made.

ADJOURNMENT

At 10:13 a.m. Mr. Baus moved, seconded by Mr. McLellan to adjourn. All voted in favor.

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