PUBLIC EMPLOYEES RETIREMENT BOARD EDUCATION SESSION AND MEETING MINUTES FOR Tuesday, June 19 and Wednesday, June 20, 2007

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1 PUBLIC EMPLOYEES RETIREMENT BOARD EDUCATION SESSION AND MEETING MINUTES FOR Tuesday, June 19 and Wednesday, June 20, 2007 The agenda for this meeting was mailed to every public employer, the news media, and other groups and individuals as requested. The Education Session of the Public Employees Retirement Board was called to order by Chairman Silvestri at 3:00 p.m., June 19, 2007, in the PERS Board Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Susan DeFrancesco, Purisimo Hernandez, David Kallas (via telephone), and Warren Wish. Members absent: Elizabeth Fretwell and George Stevens. I. INVESTMENTS June 19, 2007 Board Education Session A. Dr. Nickles and staff reviewed PERS disability retirement program and process. II. ADMINISTRATION A. Staff reviewed PERS investment manager evaluation process for interview candidates. III. PUBLIC COMMENT There were no public comments. IV. RECESS Chairman Silvestri recessed the meeting at 4:50 p.m. June 20, 2007 Board Meeting The Board meeting of the Public Employees Retirement Board was called to order by Chairman Silvestri at 8:00 a.m., June 20, 2007, in the PERS Board Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Susan DeFrancesco, Elizabeth Fretwell (via telephone), Purisimo Hernandez, David Kallas (via telephone), George Stevens (via telephone) and Warren Wish. Members absent: None. I. DISABILITIES A. For the record, Elizabeth Fretwell identified Marla Hromada and James Hunter as City of Las Vegas employees but not aware of their situation so she would be voting.

2 June 20, 2007 Page 2 For the record George Stevens also identified James Hunter as a City of Las Vegas employee but not aware of his situation so he would also be voting. On motion of Warren Wish, the Retirement Board voted unanimously to: 1. Approve permanent and total disability retirement for: Judy Baker, Linda Box, Rita Brookins, Erica Brown, Robert Carlson, Paula Coplan, Michele Ferreyra, Bruce Fox, Nicole Heinrich, Rita Heywood, Marla Hromada, James Hunter, Virginia Jamison, Carol Kahler, Kathleen Kline, Victor Ramirez, Yvonne Ritterby, Shann Ruggles, Gerald Sibley, Judy Struthers, John Stutsman, Timothy Swonger, and Johnie Williams. 2. Approve reemployment requests by disability recipients: Debra Allen, Michael Bisceglia, Roxane Clark-Murphy, Dorothy D Costa, Charles Donahue, Gloria Dondero-Pedro, Kristy Forbes, Vicki Granata, Brenda Hardwick, Teresa Hunt, Deborah Jackson, Carolyn Johnson, Karen Marshall, Creeta Mouton, Burtis Moxley, Teresa Pinney-Wylie, Betty Jo Vonderheid, and Mary Catherine Wilson. 3. Defer action on the reemployment request by disability recipient James Quinby until the August 2007 meeting at the request of Mr. Quinby. II. INVESTMENTS A. The Retirement Board heard presentations by Goldman Sachs, Pyramis Asset Management, and QMA Asset Management for an international stock enhanced index mandate. After discussion, the Retirement Board took the following action: 1. On motion of David Kallas, the Retirement Board voted unanimously to approve the Investment Objectives and Policies for the PERS Fund, as submitted. 2. On motion of David Kallas, the Retirement Board voted unanimously to retain Goldman Sachs to oversee an enhanced international stock index portfolio for the PERS fund pending successful contract negotiations. 3. On motion of Elizabeth Fretwell, the Retirement Board voted 6-yeas and 1-no, to identify QMA Asset Management as a second enhanced international stock index manager in the event PERS international stock allocation is increased within the next 6 months. Charles Silvestri voted no. 4. On motion of Purisimo Hernandez, the Retirement Board voted unanimously to eliminate the BNY Asset Management international stock index account and transfer the assets to Mellon s international stock index and Goldman Sachs. B. Staff reviewed the proposed modifications to the Interim Investment Directives for the PERS fund. On motion of Susan DeFrancesco, the Retirement Board voted unanimously to approve the Interim Investment Directives, PERS fund, as submitted. III. BOARD A. Staff presented eight new draft logos for the Public Employees Retirement System. The Board directed staff to have logo number three re-drafted and presented to the Board at the July 2007 meeting.

3 June 20, 2007 Page 3 B. On motion of Susan DeFrancesco, the Retirement Board voted unanimously of those present to approve the minutes of the Retirement Board education session and meeting held May 16 and 17, 2007, as submitted. Elizabeth Fretwell was absent for this vote. C. On motion of Elizabeth Fretwell, the Retirement Board voted unanimously to move the August meeting dates to Wednesday and Thursday, August 15 and 16 and the December meeting dates to Tuesday and Wednesday, December 11 and 12, D. On motion of Susan DeFrancesco, the Retirement Board voted unanimously to change the Investment topic for the July education session to Investment Risk. IV. ADMINISTRATION A. Staff presented the contract renewal with The Segal Company for actuarial and benefit consulting services for fiscal years 2008 and On motion of Warren Wish, the Retirement Board voted unanimously of those present to instruct staff to contract with The Segal Company for actuarial and benefit consulting services for fiscal years 2008 and 2009 in amounts not to exceed those stated in the memorandum, subject to successful negotiations. Elizabeth Fretwell and George Stevens were absent for this vote. B. Staff reviewed the contract renewal with PERS Medical Consultant, Bruce Nickles, M.D. On motion of Purisimo Hernandez, the Retirement Board voted unanimously of those present to approve a contract with Bruce Nickles, M.D. for two years beginning July 1, 2007, and ending June 30, 2009, at a monthly rate of $2, in fiscal year 2008, and $2, in fiscal year George Stevens was absent for this vote. C. Staff presented the contract renewal with CEM Benchmarking for performance benchmarking services for fiscal year On motion of Elizabeth Fretwell, the Retirement Board voted unanimously of those present to approve the contract with CEM Benchmarking, Inc., for performance benchmarking services for fiscal year 2008 at a cost not to exceed $35, George Stevens was absent for this vote. D. Staff reviewed the proposed contract with L.R. Wechsler Ltd. to provide quality assurance consulting services. On motion of Susan DeFrancesco, the Retirement Board voted unanimously of those present to approve a contract with L.R. Wechsler Ltd. to provide consulting services at a cost not to exceed $24,780.00, subject to successful negotiation. George Stevens was absent for this vote. E. Staff presented the proposed contract with Apex Computing, Inc. for information technology consulting services for fiscal year On motion of Susan DeFrancesco, the Retirement Board voted unanimously of those present to approve the consulting contract with Apex Computing, Inc., for the System s main office, in an amount not to exceed $670,800.00, subject to successful negotiation. George Stevens was absent for this vote.

4 June 20, 2007 Page 4 F. Staff reviewed the proposed contract with Apex Computing, Inc. for disaster recovery consulting services for fiscal year On motion of Warren Wish, the Retirement Board voted unanimously of those present to approve a contract for consulting services a the disaster recovery site with Apex Computing, Inc., in an amount not to exceed $23, George Stevens was absent for this vote. G. Staff presented the proposed modifications to PERS Official Policies, dated November 1, 2005 and requested the Board s authorization to notify all employers of the proposed changes. On motion of David Kallas, the Retirement Board voted unanimously of those present to authorize staff to notify employers of the proposed revisions to PERS Official Policies in accordance with NRS Elizabeth Fretwell and George Stevens were absent for this vote. V. LEGISLATION A. Staff provided the final status of bills that PERS tracked during the 2007 legislative session. Staff also discussed issues that arose during the session including divestment. The staff concluded that the 2007 legislative session was very successful. B. There were no legislative items that developed after the publication of the agenda. VI. RATIFICATION AGENDA On motion of Susan DeFrancesco, the Retirement Board voted unanimously of those present to: A. Approve the Administrative Fund disbursements. B. Approve all personnel action since the last report. C. Retroactively approve the Investment Performance Guidelines for BlackRock Realty and Invesco Realty private real estate portfolios. D. Approve out-of-state travel for appropriate Board members and staff to attend the National Association of State Retirement Administrators (NASRA) annual conference August 3-8, 2007, in Aventura, Florida. E. Approve an Independent Contract with Employee s Company of Nevada, Inc. for the period July 1, 2007, through September 30, at a cost not to exceed $10, F. Approve the City of Winnemucca s request for a penalty waiver in the amount of $ G. Approve the Final Benefit Audit Report for December H. Approve the Final Benefit Audit Report for January George Stevens was absent for this vote.

5 June 20, 2007 Page 5 VII. VIII. IX. DENIALS REPORTS PUBLIC COMMENT A. Jill Warren of The Patriot Group addressed the Board regarding her participation with the Sudan Divestment Task Force and this group s origin. She also discussed their model legislation and the purpose of their targeted divestments. Brad Ramirez of The Segal Company thanked the Board for their continued patronage and the Board s patience during Segal s Colorado office transition. B. The Deputy Attorney General had nothing to report. C. Administrative report by Staff. Executive Officer: 1. The Executive Officer delivered a speech at the NASA conference on June 19 th in Lake Tahoe to approximately 100 attendees. The presentation was well received and the association is very supportive of PERS. Operations Officer: 1. The Operations Officer announced that Cortex ed the Board s self-assessment survey to each Board member and asked that the surveys be completed by June 29 th. Investment Officer: 1. The Investment Officer provided a performance update on the Voyageur Asset Management portfolio. The Board requested staff invite Voyageur to the July meeting for a formal review. D. Questions and/or comments by members of the Retirement Board. Charles Silvestri: 1. Chairman Silvestri stated that the Retirement Board is very concerned about the situation in the Sudan and will continue to research and monitor it closely. 2. Chairman Silvestri praised the Executive Staff for the outstanding job they did representing PERS members and beneficiaries during the 2007 legislative session. The staff has a great relationship with all the legislators. Elizabeth Fretwell: 1. Ms. Fretwell thanked staff and Callan for their diligence and hard work during the manager search

6 June 20, 2007 Page 6 for an enhanced international stock index manager. All the candidates were excellent. 2. Ms. Fretwell mentioned she will not be available for the July meeting as she will be attending an educational conference out of state. X. ADJOURNMENT The meeting was adjourned by Chairman Silvestri at 1:00 p.m. The following is the time schedule for the meeting: On June 19, 2007, the Education Session was called to order at 3:00 p.m. by Chairman Silvestri and recessed at 4:50 p.m. The June 20, 2007, Board meeting was called to order at 8:00 a.m. Five breaks were taken at 8:05, 9:00, 9:50, 10:40 and 12:00 noon for approximately five minutes each. The meeting was adjourned at 1:00 p.m.