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

November 19, 2015

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

TRUSTEES ABSENT
Paul Fortier

EX OFFICIO MEMBERS
Martha Carlson, Deputy State Comptroller
Deborah Spalding, CIO, Office of the State Treasurer

MUNICIPAL LIAISON
Thomas Landry

OTHERS PRESENT
Brenda Halpin, Director, Retirement Services Division
Robin Kallor and Cindy Cieslak in place of Michael Rose, General Counsel to the Retirement Commission
Karen Nolan, Office of Policy and Management
Natalie Braswell, General Counsel to the State Comptroller
Colin Newman, Office of the State Comptroller
Genevieve Ballinger, Office of the State Comptroller

CALL TO ORDER
Chairman Adomeit called the meeting to order at 9:08 a.m.

CHAIRMAN'S REPORT
Chairman Adomeit reported that the committees have been very busy. The ad-hoc committee held due process hearings for those who may have been unduly employed who are retirees and have the risk of benefits being curtailed. There have been three hearings. There have not been any decisions as of yet. We are waiting for the court ruling in the Cruz Aponte case, argued on December 13. There is also the Maturo case, which may also affect the rulings. A couple of individuals with hearings are no longer employed, one is in Florida. We are debating whether or not to bring them into the Commission. In December, the ad hoc committee will bring that to the full commission. There are still 400 who have not responded to the letters, so we are sending out a new letter. We will likely have more hearings for those folks depending on the Cruz Aponte case decision.

Auditors' reports will be looked at by a small subcommittee. We will be meeting with the Comptroller's Office to begin that process. This will be a fairly extensive process. And the Governor's pension idea for splitting up Tier 1 from the remainder of the pension system was studied by the actuarial subcommittee. They will be looking at it in depth, in collaboration with the tax attorney Bruce Barth and other experts, in addition to the Comptroller's office.

DIVISION DIRECTOR'S ADMINISTRATIVE REPORT
The customer service center went live on Monday, November 2nd and the telephone system went live the following Monday. The new case management system has kept us busy. Since November, 931 documents, forms, and correspondence have been scanned in. This is an average of 148 images per day. The supervisors will be meeting to review the processes surrounding the customer service center. The weekend prior to November 2nd over 16,000 records were rolled over into the customer service center. The normal retirements and the disability finalizations, purchases and ARP to Hybrid data will all be in one system. We will be continuing to do work in both the legacy system and new system until May, when the final conversion will take place. The legacy system will be converted to Core-CT at the end of June.

Sample copies of the employee benefit statements were presented. The statements will be mailed early next week.

For the November retirement payroll we had 142 new retirees (134 normal, 6 disabilities, 15 voluntary pending and 7 Hybrid). The Division completed 88 normal finalizations and 4 disability finalizations. The current backlog of audits is 2,174 for disabilities and 12,350 regular retirements.

On the ARP to Hybrid transfers there are 315 retirees, 1,522 transfers, 9 waivers and 4 prospective for a total of 1,850. We were able to process 34 transfers this month and the outstanding number to be audited and processed is 724. In addition just this morning we were sending out an additional 10 invoices for the transfers.

The next available meeting for scheduling is January 2016.

We held training for the MEB doctors regarding the new standard for the 24 month reviews on Monday and Tuesday. They will begin looking at the reviews in January. We are scheduling meetings with them to incorporate them into the 2016 calendar.
Mr. Poulin asked about adding an item to the agenda on receiving the independent auditor's report on the Schedules of Employer Allocations, Schedules of Pension Amounts by Employer and Schedules of Sensitivity Analysis and Deferred Inflow of Amounts by Employer as of June 30, 2014. The motion was seconded by Mr. Greatorex and all voted in favor to amend the agenda.

Mr. Poulin then motioned to acknowledge receipt of the independent auditor's report. The motion was seconded by Mr. Luciano. Mr. Landry asked if the Commission had seen the report yet. Ms. Halpin said it will be sent out to the Commission members. All voted in favor to acknowledge receipt.

NEW MATTERS

1. REQUEST COMMISSION APPROVAL OF OCTOBER 15, 2015 MINUTES Mr. Luciano moved, seconded by Mr. Greatorex to approve the October 15, 2015 minutes. All voted in favor. Ms. Mandour and Ms. Grasso-Egan abstained.

Majority Decision

2. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION CHAIRMAN'S PER DIEM EXPENSES Mr. Luciano moved, seconded by Mr. Greatorex to approve the Chairman's per diem expenses. All voted in favor.

Unanimous Decision

3. REQUEST COMMISSION APPROVAL OF THE STATE EMPLOYEES RETIREMENT COMMISSION UNION TRUSTEE'S PER DIEM AND TRAVEL EXPENSES REIMBURSEMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the union trustee's per diem and travel expenses reimbursements. All voted in favor.

Unanimous Decision

4. REQUEST COMMISSION REVIEW OF THE OCTOBER 2015 BILLING FROM ROSE KALLOR Mr. Luciano moved, seconded by Mr. Greatorex to review the October 2015 billing from Rose Kallor. All voted in favor.

Unanimous Decision

5. REQUEST COMMISSION REVIEW OF THE SEPTEMBER AND OCTOBER 2015 BILLINGS FROM ROBINSON & COLE Mr. Luciano moved, seconded by Mr. Greatorex to review the September and October 2015 billings from Robinson & Cole. All voted in favor.

Unanimous Decision

6. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES RETIREMENT SYSTEM SERVICE RETIREMENTS FOR THE MONTH OF OCTOBER 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the service requirements for the month of October 2015. All voted in favor.

Unanimous Decision

7. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM DISABILITY RETIREMENTS FOR THE MONTH OF OCTOBER 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the disability retirements for the month of October 2015. All voted in favor.

Unanimous Decision

8. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM VOLUNTARY PENDING RETIREMENTS FOR THE MONTH OF OCTOBER 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the voluntary pending retirements for the month of October 2015. All voted in favor.

Unanimous Decision

9. REQUEST COMMISSION APPROVAL OF THE CONNECTICUT STATE EMPLOYEES SYSTEM RETROACTIVE RETIREMENTS FOR THE MONTH OF OCTOBER 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the retroactive retirements for the month of October 2015. Mr. Luciano questioned why the retirements were retroactive. Ms. Halpin explained that they are retroactive because they are waiting on appropriate paperwork, but that the effective date is prior to the date the paperwork is received. All voted in favor.

Unanimous Decision

10. REQUEST COMMISSION APPROVAL OF THE MUNICIPAL RETIREMENT SYSTEM RETIREMENTS Mr. Luciano moved, seconded by Mr. Greatorex to approve the municipal retirement system retirements. All voted in favor.

Unanimous Decision

11. REQUEST COMMISSION APPROVAL OF THE JUDGES, FAMILY SUPPORT MAGISTRATES AND COMPENSATION COMMISSIONERS RETIREMENT SYSTEM RETIREMENTS NOVEMBER 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the judges, family support magistrates, and compensation commissioners retirement system retirements for the month of November 2015. All voted in favor.

Unanimous Decision

12. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES AND EMPLOYEES RETIREMENT SYSTEM RETIREMENTS FOR NOVEMBER 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the probate judges and employees retirement system retirements for the month of November 2015. All voted in favor.

Unanimous Decision

13. REQUEST COMMISSION APPROVAL OF THE PROBATE JUDGES AND EMPLOYEES RETIREMENT FUND PERSONNEL EXPENSES FOR THE PAY PERIOD SEPTEMBER 4, 2015 THROUGH OCTOBER 15, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to approve the probate judges and employees retirement fund personnel expenses for the pay period September 4, 2015 through October 15, 2015. All voted in favor.

Unanimous Decision

14. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE JUDGES, FAMILY SUPPORT MAGISTATES' AND COMPENSATION COMMISSONERS' RETIREMENT FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the judges, family support magistrates, and compensation commissioners retirement fund statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE JUDGES', FAMILY SUPPORT MAGISTRATES' AND COMPENSATION COMMISSIONERS' RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the judges, family support magistrates, and compensation commissioners retirement fund balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

15. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE PUBLIC DEFENDERS' RETIREMENT FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the public defenders' retirement fund statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE PUBLIC DEFENDERS' RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the public defenders' retirement fund balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

16. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE GENERAL ASSEMBLY PENSION FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the General Assembly pension fund statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE GENERAL ASSEMBLY PENSION FUND BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the General Assembly pension fund balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

17. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE STATE EMPLOYEES' RETIREMENT SYSTEM STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the State Employees' Retirement System statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE STATE EMPLOYEES' RETIREMENT SYSTEM BALANCE SHEET AS OF JUNE 30 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the State Employees' Retirement System balance sheet as of June 30, 2015. Mr. Greatorex asked what the bargain unit contributions were. Ms. Halpin explained that the union members working at union offices, those are the contributions. Mr. Greatorex commented that the $1 million in interest paid should decrease with this new software. All voted in favor.

Unanimous Decision

18. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE STATE ATTORNEYS' RETIREMENT FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the state attorneys' retirement fund statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE STATE ATTORNEYS' RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the state attorneys' retirement fund balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

19. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE PROBATE JUDGES'AND EMPLOYEES' RETIREMENT FUND STATEMENT OF OPERATIONS FOR PLAN YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the probate judges and employees' retirement fund statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE PROBATE JUDGES' AND EMPLOYEES' RETIREMENT FUND BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the probate judges and employees' retirement fund balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

20. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE CONNECTICUT POLICEMAN & FIREMEN SURVIVORS' FUND STATEMENT OF OPERATIONS FOR FISCAL YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the Connecticut policeman and firemen survivors' fund statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE CONNECTICUT POLICEMAN & FIREMEN SURVIVORS' BENEFIT FUND BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the Connecticut policeman and firemen survivors' benefit fund balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

21. a. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT FUND B STATEMENT OF OPERATIONS FOR THE PLAN YEAR ENDING JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the Connecticut municipal employees retirement fund B statement of operations for fiscal year ending June 30, 2015. All voted in favor.

Unanimous Decision

b. REQUEST COMMISSION REVIEW AND ACCEPTANCE OF THE CONNECTICUT MUNICIPAL EMPLOYEES' RETIREMENT FUND B BALANCE SHEET AS OF JUNE 30, 2015 Mr. Luciano moved, seconded by Mr. Greatorex to review and accept the Connecticut municipal employees' retirement fund B balance sheet as of June 30, 2015. All voted in favor.

Unanimous Decision

22. FOR COMMISSION REVIEW AND CONSIDERATION OF THE PROPOSED CALENDAR FOR RETIREMENT COMMISSION MEETINGS FOR 2016 Mr. Luciano moved, seconded by Mr. Greatorex to review and consider the proposed calendar for Retirement Commission meetings for 2016. All voted in favor.

Unanimous Decision

23. REQUEST COMMISSION APPROVAL OF PARTICIPATION OF THE NEW LONDON PUBLIC WORKS (GENERAL EMPLOYEES) IN THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM (CMERS) EFFECTIVE JANUARY 1, 2016 Mr. Luciano moved, seconded by Mr. Greatorex to approve participation of the New London Public Works (general employees) in the Connecticut municipal employees retirement system (CMERS) effective January 1, 2016. Ms. Grasso-Egan asked if there was only one department joining CMERS. Ms. Carlson said yes, they are moving in one bargaining unit. Mr. Luciano said they already have MERS so there will be no illegal pensions. All voted in favor.

Unanimous Decision

EXECUTIVE SESSION ITEMS FOR DISCUSSION

Mr. Luciano moved, seconded by Mr. Greatorex to enter into Executive Session at 9:40 a.m. All voted in favor. Ms. Carlson, Ms. Halpin, Ms. Braswell, and Mr. Newman were asked to stay.

Unanimous Decision

1.  Report from Attorney re: Sampieri Case. Discussion. No action
    
2. Report from Attorney re: Bouchard Case. Discussion. No action
    
3. Report from Attorney re: Maturo Case. Discussion. No action
    
4. Report from Attorney re: Cruz-Aponte Case. Discussion. No action

ADJOURNMENT

With no further business before the Commission, Mr. Luciano moved, seconded by Ms. Brown-Brewton to adjourn at 10:35 a.m. All voted in favor.

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