These minutes are a draft subject to approval by the Retirement Board

Karen

Informations

• Publié par: Udde
• Nombre de lectures: 35
• Langue: English

Extrait

PUBLIC EMPLOYEES’ RETIREMENT BOARD

MEETING MINUTES FOR

Wednesday, November 15, 2006

The agenda for this meeting was mailed to every public employer, the news media, and other

groups and individuals as requested.

November 15, 2006

Board Meeting

The Board meeting of the Public Employees’ Retirement Board was called to order by Chariman

Silvestri at 8:00 a.m., November 15, 2006, in the PERS’ Board room, 693 West Nye Lane,

Carson City.

Members present: Charles Silvestri, Susan DeFrancesco, Elizabeth Fretwell,

Purisimo Hernandez, David Kallas, George Stevens and Warren Wish.

Members absent: None.

I.

DISABILITIES

A.

On motion of David Kallas, the Board voted unanimously to:

1.

Approve permanent and total disability retirement for: Robert

Burris, Joseph Cushing, Mary Kate Domenick, Suzanne

Donohew, Terri Grey, Barbara Fallaw, Mary Horner, Sharon

Irvine, Darlene Larsen, Helen LaVoie, Mark Leonard, Joyce

McCord, Jill Melone, Mary Montoya, Katherine Musgrove-

Goins, Martha Pearson, Judy Porter, Ralph Rodriguez, Renee

Snyder, Charles Tigrett, Linda Washington, and Paul Winter.

2.

Approve reemployment requests by disability recipients:

Carol Allen, Sharon Arizmendi, Eva Cole, Keith Flory, Kurt

Fristed, Andrew Marjie, Michael McGee, Ray Olds, Pam

Penrose, and Eugene Trombetti.

II.

INVESTMENTS

A.

Staff provided the results of their fixed income benchmark analysis.

Discussions

included manager search time horizon, performance evaluation period, broad bond

market objective, and fixed income performance premiums.

On motion of Warren

Wish the Board voted unanimously to:

1.

Approve the modification to the Investment Objectives and Policies for the

PERS’ fund, as submitted.

2.

Authorize staff to modify the Performance Guidelines for the active U.S.

bond and active international bond managers, as submitted.

Retirement Board Meeting

November 15 2006

Page 2

B.

Staff reviewed the current and past six years of performance for Rogge Global Partners

which manages an active international bond portfolio for the PERS’ fund.

Based on

staff’s analysis of current and historical performance results, staff believes it is

unreasonable to believe Rogge will capture their long-term performance objective.

John Graham and Olaf Rogge of Rogge Global Partners addressed the Board and

requested a deferral on this decision.

After discussion, on motion of David Kallas the

Board voted unanimously to:

1.

Terminate the relationship with Rogge Global Partners as soon as possible.

2.

Authorize the transfer of assets formerly managed by Rogge to UBS active

international bonds, UBS international index bonds, and Payden & Rygel

international index bonds, equally and on a temporary basis.

Staff and the Board thanked Rogge Global Partners for their six plus years of service to

the Public Employees’ Retirement System.

C.

Ruthann Moomy of

Callan Associates and Staff presented the quarterly performance

review for the PERS’, Legislators’, and Judicial Funds.

D.

Staff reviewed PERS’ annual investment cost report for Fiscal Year 2006.

On motion

of David Kallas, the Board voted unanimously to accept the 2006 Investment Cost

Report, as submitted.

E.

Staff highlighted the proposed revision to Exhibit A of Callan Associates’ Investment

Consulting Agreement.

On motion of Purisimo Hernandez, the Board voted

unanimously to approve the revision to Exhibit A of Callan Associates’ Investment

Consulting Agreement, as submitted.

F.

Staff presented the proposed changes to the Investment Objectives and Policies for the

Legislators’ and Judicial funds.

On motion of Elizabeth Fretwell, the Board voted

unanimously to approve the Investment Objectives and Policies for the Legislators’

and Judicial funds, as submitted.

G.

Staff reviewed the proposed modifications to the Interim Investment Directives for the

PERS’, Legislators’, and Judicial funds.

On motion of George Stevens, the Board

voted to approve the Interim Investment Directives for the PERS’ as amended and

approve the Interim Investment Directives for the Legislators’, and Judicial funds, as

submitted.

III.

BOARD

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November 15 2006

Page 3

A.

Staff presented the Annual Governance Compliance Report as prepared by Cortex

Applied Research, Inc.

On motion of David Kallas, the Board voted unanimously to

accept the Governance Report prepared by Cortex Applied Research Inc., as submitted.

B.

Staff reviewed the proposed revisions to the Retirement Board Charter and the

Executive Officer Charter.

On motion of Elizabeth Fretwell, the Board voted

unanimously to approve the revisions to the Charter of the Retirement Board and the

Executive Officer Charter, as submitted.

C.

On motion of Susan DeFrancesco, the Board voted unanimously to approve the minutes

of the Retirement Board Education Session and meeting held on October 24 and 25,

2006, as submitted.

D.

There were no changes to the Retirement Board meeting dates.

E.

On motion of George Stevens the Board voted unanimously to change the investment

education topic for December to Private Equity.

F.

Staff presented the proposed Retirement Board education curriculum calendar for 2007.

On motion of David Kallas, the Board voted unanimously to approve the proposed

Retirement Board education curriculum calendar for 2007, as submitted.

IV.

ADMINISTRATION

A.

Michael Moehle and Brad Ramirez of The Segal Company and Staff presented the

results of the fiscal year 2006 actuarial valuation for the PERS’ fund.

On motion of

Purisimo Hernandez, the Board voted unanimously to accept the June 30, 2006, PERS’

Actuarial Valuation Report as prepared by The Segal Company, the System’s

independent actuary.

B.

Staff reviewed the minutes of the Police and Firefighters Retirement Fund Advisory

Committee meeting held October 19, 2006.

On motion of Susan DeFracesco, the Board

voted unanimously to approve

the minutes and recommendations of the Police and

Firefighter’s Retirement Fund Advisory Committee meeting held October 19, 2006, as

submitted.

V.

LEGISLATION

A.

Staff presented an update on the Bill Draft Request list for the 2007 Legislative Session

that staff is currently tracking.

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November 15 2006

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B. Based on the results of the 2006 Actuarial Valuation and the Board’s funding policy,

Staff recommended that the Board not sponsor any fiscal legislation for the 2007

legislative session.

On motion of Warren Wish, the Board voted unanimously to accept

Staff’s recommendation for no Board-sponsored fiscal legislation for the 2007

legislative session.

VI.

RATIFICATION AGENDA

On motion of George Stevens, the Board voted unanimously to approve all items in the

Ratification Agenda, except item F.

In a separate motion by George Stevens the Board

voted 6-yeas and 1-abstention to approve item F. of the Ratification Agenda.

Purisimo

Hernandez abstained from this vote.

A. Approve the Administrative Fund disbursements.

B. Approve all personnel action taken since the last report.

C.

Retroactively approve out-of-state travel for one internal auditor to attend the

Association of Public Pension Fund Auditors (APPFA) annual conference November 6-

8, 2006, in Chicago, Illinois.

D.

Approve the Legislative Counsel Bureau’s request for a penalty waiver in the amount of

$541.40.

E.

Approve Elko County’s request for a penalty waiver in the amount of $1,253.59.

F.

Approve the Department of Transportation’s request for a penalty waiver in the amount

of $2,829.56.

G.

Approve an Independent Contract with the Nevada State Printing Office to print the

Comprehensive Annual Financial Report (CAFR) for fiscal year 2006 for an amount not

to exceed $6,000.00.

VII.

DENIALS

VIII. REPORTS

IX.

PUBLIC COMMENT

A.

There were no individual statements and/or requests by the members, retired employees

and/or the public.

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November 15 2006

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B.

The Deputy Attorney General had nothing to report.

C.

Administrative report by Staff.

Executive Officer:

1.

The Executive Officer reported that the Public

Relations Program has begun to be

implemented with approximately five speaking

presentations scheduled over the next few

months.

Staff is continuing to contact

associations to see if PERS could be placed on

their agendas for upcoming meetings.

2. The Executive Officer mentioned that she has

received phone calls and correspondence from

some legislators.

Staff from the Government

Affairs Committee will meet with the

Executive Officer on Monday, November 20

th

.

3. The Executive Officer will contact Andrew

Clinger, Director of the Department of

Administration to inform him of the results of

the actuarial valuation for 2006.

Staff will also

be contacting the Liaison Officers with the

same information.

4. The Executive Officer thanked all the staff that

planned, participated, and especially Kathi

Quilici, for arranging the 3

rd

Annual Liaison

Officer Conference.

Everyone did a great job.

5. The Executive Officer reported that her

appointment to the Social Security Advisory

Board is moving forward.

Operations Officer:

1. The Operations Officer thanked all the staff for

the wonderful job they did at the 3

rd

Annual

Liaison Officer Conference.

The presentations

were great and everyone participated in the

work sessions after lunch.

There were

approximately 190 attendees.

It was a huge

success.

D.

Questions and/or comments by members of the Retirement Board.

Charles Silvestri:

1.

On behalf of the Board and staff, Chairman Silvestri

congratulated Bob Auer, Senior Deputy Attorney

General on his newly elected position of Lyon

County DA.

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November 15 2006

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2.

Chairman Silvestri also thanked all the staff that

was involved with the Liaison Officer conference

for the great job they did.

Purisimo Hernandez:

1.

Mr. Hernandez thanked the staff for the wonderful

conference and said that the presentations were

awesome and very informational.

Susan DeFrancesco:

1.

Vice-Chairwoman DeFrancesco attended the

Liaison Officer conference and enjoyed it

immensely.

She also thanked the staff for the

wonderful job they did on the presentations and

answering questions from the audience.

The

materials provided make a great reference tool and

she looks forward to attending next year.

X. ADJOURNMENT – The meeting was adjourned by Chairman Silvestri at 1:30 p.m.

The following is the time schedule for the meeting:

The November 15, 2006, Board meeting was called to order at 8:00 a.m.

One break was taken

at 10:00 a.m. for approximately ten minutes.

The meeting was recessed at 11:55 a.m. for

approximately 30 minutes for lunch and adjourned at 1:30 p.m.