MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF OCTOBER 25,2007

Transcription

1 MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF OCTOBER 25,2007 The Board of Fire and Police Pension Commissioners of the City of Los Angeles met in Room 800,360 East Second Street, on Thursday, October 25,2007. COMMISSIONERS PRESENT: COMMISSIONER ABSENT: DEPARTMENT OF FIRE AND POLICE PENSIONS: CITY ATTORNEY'S OFFICE: COURT REPORTER: Sean Harrigan, President Mike Carter, Vice President George V. Aliano Elliott Broidy Sam Diannitto Steve Juarez (via teleconference) Don Keith Patricia Means Louis Moret Michael A. Perez, General Manager D. Edward Griffiths, Assistant General Manager Laura Guglielmo, Assistant General Manager Tom Lopez, Chief Investment Officer Isabel Rosas, Commission Executive Assistant Alan Manning, Assistant City Attorney John Blair, Deputy City Attorney Diane L. Paniccia, U.S. Legal Support Commissioner Juarez j oined the Board meeting telephonically fiom Sacramento, California, and his location was agendized in compliance with the Brown Act. President Harrigan called the regular meeting to order at 9:03 a.m. All of the above-listed Commissioners except Commissioner Moret were present at the start of the meeting.

2 Page 2 1. COMMUNICATIONS TO THE BOARD A. Miscellaneous correspondence from money managers, consultants, etc. - Received and Filed B. Monthly Report - Received and Filed President Harrigan inquired about the status of the Board Assignment to Staff of January 4, 2007 regarding breakdown of minority managers and woman owned firms. Mr. Perez indicated staff is restructuring the report to provide the breakdown. President Harrigan commented on asset allocation being significantly over allocated on the public equity side as result of the under allocation in two asset classes. 2. COMMITTEE REPORTS A. Benefits Committee Chair Aliano reported that he would meet today with the new City Administrative Officer, Karen Sisson, to discuss Insurance Subsidy for Disabled Members with less than 10 Years of Service and making adjustments on' Retirees Subsidy to be paid on time. Chair Aliano commended Commissioner Diannitto for starting and overseeing the Public Safety Employee Pension & Benefits Conference for the past 22 years which is now being handled by NCPERS. B. Governance Committee Chair Diannitto stated the Committee met earlier this morning regarding the General Manager's annual evaluation. The item is agendized for today's Board meeting and will be discussed when the item comes up. C. Ad Hoc Space Planning Committee Chair Carter reported that the next meeting is scheduled for November 1,2007 and Cushman and Wakefield have identified additional properties. Ms. Laura Guglielmo, Assistant General Manager, reported staff has met with Cushman and Wakefield and LACERS staff to go over RFP responses. President Harrigan asked if staff is comfortable with the diligence executed from Cushman and Wakefield on moving the project forward. Ms. Guglielmo stated there are obstacles that make this a difficult project for Cushman and Wakefield. President Harrigan suggested to agendized for the November 1 meeting to discuss: 1. Whether Fire and Police Pensions is content with Cushman & Wakefield and their progress; and, 2. If Fire and Police Pensions have a common vision with LACERS.

3 Page 3 D. Audit Committee Chair Means stated the Audit Committee is waiting for the City to complete the final report on the management audit and staff has put out the RPF for the consultant to assist the Board in establishing the internal audit function. 3. CONSIDERATION AND POSSIBLE ADOPTION OF THE ACTUARIAL EXPERIENCE STUDIES Ms. Robyn Barnes, Senior Management Analyst I, Communications and Special Projects, and Mr. Paul Angelo, The Segal Company, came before the Board and gave a presentation on the findings of the 2007 Experience Study and the Retiree Health Evaluation that was done for ACTUAFUAL EXPERIENCE STUDIES RESOLUTION Commissioner Diannitto moved that the Board adopt the findings and recommendations of the Experience Study conducted by The Segal Company for the period July 1,2004 through June 30,2007, which motion was seconded by Commissioner Broidy and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith, Juarez, Means and President Harrigan : 8; nays, none ACTUARTAL RESOLUTION Commissioner Carter moved that the Board adopt the retiree health findings and recommendations of The Segal Company for the June 30, 2007 Retiree Health Valuation, which motion was seconded by Commissioner Diannitto and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Means and President Harrigan - 6; nays, none. 4. ACCEPTANCE OF FUND TRANSFER FROM LACERS FOR PORT POLICE OFFICERS Ms. Robyn Barnes, Senior Management Analyst I, Communications and Special Projects, came before the Board and gave a presentation on the acceptance of transfer funds from LACERS for the Port Office Officers. Ms. Barnes stated 40 out of 60 of the existing Port Officers made the election to transfer from LACERS to Tier 5 through the enrollment period. Commissioner Carter moved that the Board: RESOLUTION 08044

4 Page 4 1) Accept the transfer of $5,410,001 from the Los Angeles City Employees' Retirement System (LACERS) Basic Pension Reserve Account and $8 10,075 from the LACERS Health Benefits Reserve Account, for a total transfer amount of $6,220,076, and 2) Direct staff to deposit the total transfer amount of $6,220,076 in the Tier 5 General Pension Fund. which motion was seconded by Commissioner Diannitto and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Means and President Harrigan - 6; nays, none. 5. GOVERNANCE COMMITTEE RECOMMENDATION REGARDING THE USE OF CONSULTING SERVICES TO ASSIST IN THE ANNUAL PERFORMANCE EVALUATION OF THE GENERAL MANAGER At today's earlier Governance Committee meeting, the Committee heard presentations by KH Consulting Group and The Results Group. The Committee discussed with each firm the Board's expectations to get through the process this year which evaluation has to be completed by the second meeting in December and to develop a methodology for evaluating the General Manager's performance in the future and deciding exactly what components will make up that evaluation. The Committee decided to defer recommendation and discussion to the full Board. The Board discussed the presentations and made the following motions: Commissioner Carter moved that the Board authorize staff to hire The Results Group as a consultant which motion was seconded by Commissioner Broidy and failed by the following vote: ayes, Commissioners Broidy, Carter, Means and President Harrigan - 4; nays, Commissioners Aliano, Diannitto, Juarez and Keith - 4. Commissioner Diannitto moved that the Board authorize staff to hire KH Consulting Group for a period of one year with an option to renew the contract for two one-year extensions subject to successful conclusion of negotiation of fee which motion was seconded by Commissioner Carter and failed by the following vote: ayes, Commissioners Aliano, Carter, Diannitto and Juarez - 4; nays, Commissioners Broidy, Keith, Means, and President Harrigan - 4. RESOLUTION Commissioner Keith moved that the Board authorize staff to hire The Results Group, for a period of one year beginning November 1,2007, with an option to renew the contract for two one-year extensions, to perform as a consultant in assisting the Board with the Annual Performance Evaluation of the General Manager and also provide ad hoc consultation services in the development of the future General Manager performance evaluation process, which motion was seconded by Commissioner Carter and

5 Page 5 approved by the following vote: ayes, Commissioners Broidy, Carter, Diannitto, Keith, Means and President Harrigan - 6 ayes; Commissioners Aliano and Juarez - 2 nays. 6. BOARD MEMBER EDUCATION MATRIX AND FEEDBACK Ms. Myo Thedar, Senior Management Analyst 11, Administrative Services Section, came before the Board and presented the Board Member Education Matrix and requested Board feedback. Ms. Thedar mentioned that during the June 14, 2007 discussion of the Board Self-Evaluation Survey Results, the Governance Committee instructed staff to develop a more formal and organized Board education process. Commissioner Means requested emerging market investments domestic and international be added. President Harrigan requested staff get input as well fiom the consultants, city attorney, and actuary. President Harrigan asked the Board to provide their feedback to staff. Commissioner Juarez ended telephonic Boardparticipation for the day. Before disconnecting, Commissioner Juarez commented on Item 8 and his satisfaction with Townsend on the work they have done on the Real Estate portfolio and on Item 1 I the Board making a decision on Iran soon. 7. QUARTERLY PORTFOLIO PERFORMANCE REVIEW Mr. Tom Lopez, Chief Investment Officer, and Mr. Allan Emkin, Pension Consulting Alliance, came before the Board and made a presentation on the quarterly portfolio performance review. The performance was partially reviewed on September 27, Mr. Lopez stated the fund performed 18%% for the fiscal year ending June 30,2007 which is above the allocation benchmark. 8. REAL ESTATE CONSULTANT CONTRACT EXPIRATION AND POSSIBLE AUTHORIZATION TO CONDUCT A SEARCH Mr. Rick Rogers, Investment Officer 11, came before the Board and made a presentation on the Real Estate Consultant Contract Expiration. Mr. Rogers indicated the Townsend Group was hired in February 2005 and their three-year contract is due to expire at the end of January Staff is satisfied with Townsend's performance. City Charter allows the Board to renew a contract for this type work without going out for competitive bid. Commissioner Carter indicated he was satisfied with Townsend's performance and recommended retaining Townsend without a search. After Board discussion, the Board decided to follow staffs recommendation and conduct a search. RESOLUTION Commissioner Means moved that the Board authorize a search for a Real Estate Consultant, direct Staff to create a Request for Proposals, conduct the search, evaluate responses received and report back to the

6 . Page 6 Board, which motion was seconded by Commissioner Keith and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith, Means and President Harrigan - 7; nays, none. Commissioner Means left the Board meeting for the day. 9. RECOMMENDATION BY THE SENTINEL REAL ESTATE CORPORATION - PROPOSED PURCHASE OF THE KAPLAN UNIVERSITY OFFICE CENTER Messrs. David Weiner, Vice Chairman, and Marty Cawley, Managing Director, Sentinel Real Estate Corp., came before the Board and gave a presentation on a proposed purchase of the Kaplan University Office Center. RESOLUTION Commissioner Diannitto moved that the Board approve the Sentinel Real Estate Corporation recommendation that the Board approve the purchase of the Kaplan University Office Center, a twobuilding office property located in Fort Lauderdale, Florida, which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith, and President Harrigan - 6; nays, none. 10. APPROVAL OF RECOMMENDATION BY THE TOWNSEND GROUP - INVESTMENT IN GUGGENHEIM STRUCTURED REAL ESTATE 111, L.P. Ms. Micolyn Yalonis, Principal, The Townsend Group, came before the Board and made a presentation on investing in the Guggenheim Structured Real Estate 111, L.P. RESOLUTION Commissioner Aliano moved that the Board approve The Townsend Group recommendation that the Board invest up to $30 million in the Guggenheim Structured Real Estate 111, L.P., which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Keith and President Harrigan - 5; nays, Commissioner Diannitto MAYOR'S IRANIAN DIVESTMENT LETTER AND POSSIBLE BOARD ACTION Mr. Tom Lopez, Chief Investment Office, and Erika Tiedge, Investment Officer I, came before the Board and discussed the Mayor's Iranian Divestment letter dated September 24,2007 to the three retirement boards asking them to identify the companies doing business in Iran's energy defense and nuclear sectors in response to the Resolution passed by the City Council in June. The Board addressed this issue and on August 16,2007 the Board decided to deal with the issue of Iran through its Social Political and Human

7 Page 7 Rights Issue Policy. The Board decided to wait to see which companies are identified by the federal government to determine our exposure to these companies. Staff has drafted a response letter to the Mayor for the Board's review. Commissioner Aliano expressed concern over his fiduciary responsibility and the Mayor's authority in this area. Mr. Alan Manning, Assistant City Attorney, responded the Mayor's letter is a request and does not violate the State Constitution or Proposition 162. After discussion, the Board decided not to send the proposed letter to the Mayor. 12. APPROVAL OF NEW MEDICARE QUALIFIED SURVIVING SPOUSEIDOMESTIC PARTNER, DENTAL SUBSIDY AND MEDICARE PART B PREMIUM REIMBURSEMENT MAXIMUMS FOR 2008 Mr. Gregory Mack, Senior Management Analyst 11, Medical and Dental Benefits Section, came before the Board and made a presentation on the New Medicare Qualified Surviving Spouse/Domestic Partner, Dental Subsidy and Medicare Part B Premium Reimbursement Maximums for RESOLUTION NO Commissioner Diannitto moved the following resolution: HEALTH SUBSIDIESREIMBURSEMENTS FOR PENSIONERS WHEREAS, retired members of the Fire and Police Pension Plan, Tiers 1,2,3,4 and 5, have had paid, on their behalf, a health insurance premium subsidy, or have received a reimbursement, in accordance with the provisions of section of the Administrative Code; and WHEREAS, the Board of Fire and Police Pension Commissioners has been granted the authority under Section (e) of the Administrative Code to increase or decrease the maximum monthly amount of the health insurance subsidy in accordance with the authority conferred in subsections (e) of Sections 1330, 1428, 151 8, and of the Charter and subsection (e) of of the Administrative Code, respectively; and WHEREAS, the Board of Administration of the Los Angeles City Employees' Retirement System (LACERS) has negotiated a rate of $ for its highest monthly premium of an approved plan supplemental to Part A of Medicare; RESOLVED, that the maximum monthly health insurance premium subsidy as described in Section (e) of the Administrative Code shall be $837.21, payable on behalf of the members and their eligible dependents (as such term is defined in the Board approved health insurance plans) or received as a reimbursement; and

8 Page 8 RESOLVED, that retired members of age 60 and above with 10 or more years of service who retired with an effective date prior to July 1, 1998, and retired members of age 55 and above with 10 or more years of service who retired with an effective date of July 1,1998 or after, who do not qualify for Part A of Medicare, shall have paid to their respective approved health insurance carriers a monthly health insurance subsidy, or paid directly to the member as a reimbursement, an amount not to exceed $ for each whole year of service; said subsidy to apply first to that portion of the premium applicable to the retired member with any remainder to be applied to the dependent(s) of said member; and RESOLVED, that retired members who do qualify for federally funded Part A of Medicare shall have paid to their respective approved health insurance carriers, on their behalf, a subsidy of $ as provided in Section (c) and in addition shall have paid to said insurance carriers, on behalf of their eligible dependents, a subsidy equal to the amount payable on behalf of the dependents of a retired member in the same plan with the same years of service who does not qualify for Parts A or B of Medicare or qualifies for Part B only whichever subsidy amount is greater, providing such subsidy does not exceed the highest subsidy for the dependent of a retired member with a like number of years of service and enrolled in a health plan available to retired members of the Los Angeles City Employees' Retirement System, in which case the latter shall be the subsidy for the dependents; and RESOLVED, the health insurance premium subsidy provided herein shall be applied against the December 31, 2007 and subsequent monthly health insurance premiums or at the earliest month thereafter which is administratively feasible, and shall remain in effect until modified or cancelled by subsequent action of the Board; and RESOLVED, that the Manager-Secretary of the Department of Fire and Police Pensions be authorized to cause demands to be drawn upon the funds of the Fire and Police Tiers 1,2,3,4 and 5 General Pension and Service Pension Funds to be paid to the service organizations through which health insurance is provided for subsidy payments applying the health insurance premiums to said eligible members in advance of or after the effective date of enrollment or change in coverage, or directly to the member in the case of a reimbursement; providing such subsidy payments have been verified against records kept by the Department of Fire and Police Pensions and the Controller's Office and found to be correct and proper and that individual subsidy amounts are within the limits set forth in the Los Angeles City Administrative Code; which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. RESOLUTION Commissioner Diannitto moved the following resolution:

9 Page 9 HEALTH SUBSIDIESIREIMBURSEMENTS FOR QUALIFIED SURVIVING SPOUSESIDOMESTIC PARTNERS WHEREAS, eligible surviving spousesldomestic partners of Tiers 1,2,3,4 and 5 of the Fire and Police Pension Plan have had paid, on their behalf, a health insurance premium subsidy in accordance with the provisions of Section of the Administrative Code; and WHEREAS, the Board of Fire and Police Pensions Commissioners has been granted the authority under Sections 1330(e), 1428(e), 15 18(e) and 161 8(e) ofthe City Charter and subsection (e) of Section of Article 10, Division 4, Chapter 20 of the Administrative Code to increase or decrease the maximum monthly amount of the health insurance subsidy; and WHEREAS, active members of the Fire and Police Pension Plan have been granted a maximum monthly subsidy of $ which is suficient to pay the member's premium and apart or all of the premium for dependents; and WHEREAS, the Board of Administration of the Los Angeles City Employees' Retirement System has negotiated a rate of $ for its Kaiser single-party premium for retired members without Part A and B of Medicare; and WHEREAS, it is the desire of this Board to exercise its authority to provide a health insurance subsidy for eligible qualified surviving spouses/domestic partners within the limits of the Administrative Code, i.e., no more than active members of the Fire and Police Pension Plans or the single party premium for civilian retirees without Part A and B of Medicare; RESOLVED, that eligible qualified surviving spousesldomestic partners who do not qualify for Part A of Medicare, shall have paid to their respective approved health insurance carriers, a monthly health insurance subsidy not to exceed $ in accordance with the subsidy entitlements based on years of service of the member, pursuant to Section of the Administrative Code, said subsidy to be used for the premium cost for the qualified surviving spouse/domestic partner only; and RESOLVED, that surviving qualified spousesldomestic partners who do qualify for federally Funded Part A of Medicare shall have paid to their respective approved health insurance carriers, on their behalf, a subsidy as provided in Section (d) and (e), said subsidy to be used for the premium cost for the qualified surviving spouseldomestic partner only; and RESOLVED, the health insurance premium subsidy provided herein shall be applied on the December 3 1,2007 pension payments and subsequent monthly payments, and shall remain in effect until modified or cancelled by subsequent action of the Board; and

10 Page 10 RESOLVED, that the Manager-Secretary of the Department of Fire and Police Pensions be authorized to cause demands to be drawn upon the General Pension Funds of Tiers 1,2,3,4 and 5 to be paid to the service organizations and health insurance carriers through which health insurance is provided for subsidy payments. However, such subsidy payments must have been verified against records kept by the Department of Fire and Police Pensions and the Controller's Office and found to be correct and proper, and individual subsidy amounts must be within the limits as set forth in the Los Angeles City Administrative Code; which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. RESOLUTION Commissioner Diannitto moved the following resolution: DENTAL SUBSIDIES FOR PENSIONERS WHEREAS;Section of the Los Angeles Administrative Code provides that the Board of Fire and Police Pension Commissioners will pay subsides toward certain dental benefit costs for certain eligible retired members of the Fire and Police Pension Plan; and WHEREAS, the Board of Fire and Police Pension Commissioners has been granted the authority under Section of the Administrative Code to increase or decrease the maximum monthly amount in accordance with the authority conferred in subsections (e) of Sections 1330,1428,15 18, and of the Charter and subsection (e) of of the Administrative Code, respectively; and WHEREAS, the Board of Administration of the Los Angeles City Employees' Retirement System (LACERS) has granted a maximum monthly subsidy of $39.04; WHEREAS, active members of the Fire and Police Pension Plan have been granted maximum monthly subsidies in excess of $39.04; and RESOLVED, that eligible members shall have paid to their respective approved employee service organizations, a monthly dental insurance subsidy not to exceed $39.04 in accordance with the subsidy entitlements based on years of service of the member pursuant to subsection (a) of Section of the Administrative Code, said subsidy to be used for the premium cost for the member only; and RESOLVED, the dental insurance premium subsidy provided herein shall be applied against the December 3 1,2007 and subsequent monthly health insurance premiums, and shall remain in effect until modified or cancelled by subsequent action of the Board; and

11 Page 11 RESOLVED, that the Manager-Secretary of the Department of Fire and Police Pensions be authorized to cause demands to be drawn upon the General Pension Funds of the Fire and Police Pension Plan, Tiers 1, 2, 3,4 and 5, to be paid to the service organizations through which dental insurance is provided for subsidy payments, applying to dental insurance premiums of said eligible members, providing such subsidy payments have been verified against records kept by the Department of Fire and Police Pensions and the Controller's Office and found to be correct and proper and that individual subsidy amounts are within the limits as set forth in the Los Angeles City Administrative Code. which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. RESOLUTION Commissioner Diannitto moved the following resolution: MEDICARE PART B PREMIUM REIMBURSEMENTS FOR PENSIONERS WHEREAS, Resolution No. 851,030 provides that the Board of Pension Commissioners will pay reimbursement of Medicare premiums for eligible retired members and beneficiaries of the Fire and Police Pension Plan receiving health subsidies who are enrolled in Parts A and B of Medicare; and WHEREAS, Medicare Part B premiums effective January 1,2008, are $96.40 per month; RESOLVED, that eligible members and eligible qualified surviving spouses/domestic partners shall have paid a monthly Medicare premium reimbursement of $96.40; and RESOLVED, the Medicare premium reimbursement provided herein shall be applied to the December 3 1,2007 and subsequent monthly payments and shall remain in effect until modified or cancelled by subsequent action of the Board; and RESOLVED, that the Manager-Secretary of the Department of Fire and Police Pensions be authorized to cause demands to be drawn upon the General Pension Funds of the Fire and Police Pension Plan, Tiers 1, 2,3,4 and 5, to be paid to the eligible members and beneficiaries, providing such payments have been verified against records kept by the Department of Fire and Police Pensions and the Controller's Office and found to be correct and proper and that individual reimbursement amounts are within the limits as set forth in the Los Angeles City Administrative Code, which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none.

12 Page UPDATE ON DEPARTMENT WEB SITE USAGE AND STATISTICS - The report was received and filed. 14. EFFECTIVE DATE OF DOMESTIC PARTNERSHIP AND QUALIFIED SURVIVOR STATUS - WILLIAM MERCHANT - The staff report was approved as submitted. RESOLUTION Commissioner Diannitto moved that it be the finding of the Board that: Mr. Merchant's request to confer qualified survivor status upon his spouse, based on his filing of an Affidavit of Domestic Partnership with the City's Personnel Department prior to his retirement, be granted effective September 25, 2001, which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. 15. BOARD APPROVAL TO REQUEST AMENDING THE CITY CHARTER TO ALLOW INTEREST TO BE CREDITED TO ACTIVE MEMBER ACCOUNTS USING THE 5-YEAR TREASURY NOTE INTEREST RATE Ms. Laura Guglielmo, Assistant General Manager, came before the Board and made a presentation on Amending the City Charter to Allow Interest to be Credited to Active Member Accounts Using the 5- Year Treasury Note Interest Rate. RESOLUTION Commissioner Diannitto moved that the Board direct the General Manager to communicate its request to amend the City Charter to allow interest to be credited to active member accounts using the five-year Treasury note interest rate, to the Mayor, City Council, and City Administrative Officer - which motion was seconded by Commissioner Keith and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. 16. DELETION OF BOARD POLICY FOR TAX FAVORED TREATMENT OF RETIREE HEALTH AND LONG TERM CARE PREMIUMS - The staff report was approved as submitted.

13 Page 13 RESOLUTION Commissioner Diannitto moved that the Board approve the proposed deletion of Board Policy Section 9.0 (Section 9.0) regarding Tax Favored Treatment of Retiree Health and Long Term Care Premiums, which motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. 17. APPROVAL OF TRAVEL AUTHORITY - VIP VISIONS INSIGHTS AND PERSPECTIVES -JANUARY 15-17, SCOTTSDALE, AZ (TWO COMMISSIONERS)- The staff report was approved as submitted. RESOLUTION Commissioner Diannitto moved that the Board authorize Commissioner Aliano and Commissioner Carter to attend the VIP Visions Insights & Perspectives from January ,2008 (January 14th is a travel day), which motion was seconded by Commissioner Keith and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. 18. GENERAL MANAGER'S REPORT A. Benefits actions approved by General Manager on October 4,2007 Pursuant to Resolution 04008, adopted by the Board of Fire & Police Pension Commissioners on August 7,2003, the following benefit actions have been approved by the General Manager October 4,2007 DISCONTINUED PENSIONS - TIER 1-3 Harold C. German Police Service Ruby C. Currie Fire Widow Maud C. Hawkins Police Widow DISCONTINUED PENSIONS - TIER 2-14 Benjamin Callison Fire Service Russell L. Gamby Fire Service John L. Hamilton Fire Service Ellsworth J. Rowe Fire Service

14 Page 14 Robert L. Darnel1 George H. Hahn, Jr. James Sturgeon, Jr. Joan Johnson Alice A. Peacock Hazel E. Amheiser Karen L. Cheatham Sharon Jones Mildred D. Roots Lucile M. Sage Police Service Police Service Police Service Fire Widow Fire Widow Police Widow Police Widow Police Widow Police Widow Police Widow DISCONTINUED PENSIONS - TIER 5-1 James E. Schilling Fire Service SERVICE PENSIONS - POLICE - TIER 5-2 Stephen C. Godlewski Police Officer I1 Eff Years 68 Days Deborah L. Miller Police Officer I11 Eff Years 48 Days ELIGIBLE GOIN'S WIDOW PENSION - TIER 1-1 Name Deceased Member Member's Class Effective Date Barbara J. Houtchens Burnice Houtchens Police Disability ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 1-1 Name Deceased Member Member's Class Effective Date Virginia L. German Harold C. German Police Service ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2-4 Name Deceased Member Member's Class Effective Date Dolores K. Hamilton John L. Hamilton Fire Service Bonnie J. Rowe Ellsworth J. Rowe Fire Service Marilyn L. Darnel1 Robert L. Darnel1 Police Service Marilynn M. Hahn George H. Hahn Police Service

15 Page 15 ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 5-1 Name Deceased Member Member's Class Effective Date Judith M. Schilling James E. Schilling Fire- Service MINOR'S PENSION - GUARDIANSHIP - TIER 2 - I Pension payments are payable for the benefit of Shaina M. and Garrett J. Bryan, minor children of deceased pensioner James J. Bryan effective June 23,2006. The letters of Guardianship, issued on May 16,2007 in the Chancery Court of Tishomingo County, Mississippi, Cause Number CV M, appointing Denise R. Bryan Guardian of the Estate of Shaina M. and Garrett J. Bryan, minor children of James J. Bryan, deceased Police Pensioner has been filed with this ofice. SURVIVING CHILD'S PENSION - TIER 3 - I Surviving child benefits are now payable to Thomas S. Pearce, Surviving Child of deceased Police Officer Jon G. Pearce effective October 21,2007 due to the attainment of age 18 and the continuation of his full-time student status. There are no more remaining minors. DECREASE SURVIVING SPOUSE'S PENSION - TIER 3-1 Decrease the pension payable to Judith A. Pearce, Police Department Surviving Spouse, due to the attainment of age 18 on October 21,2007 by Thomas S. Pearce. There are no remaining minors. INCREASE MINOR CHILD PENSION - TIER 2-1 Increase the pension payable to Garrett J. Bryan, Minor Child of deceased Pensioner James J. Bryan, fiom $ to $1,842.73, due to the attainment of age 18 on October 24,2007, by Shaina M. Bryan. There is one remaining minor. GUARDIANSHIP - TIER 1-1 A certified copy of the Letters of Guardianship, issued in the County of Washoe, Nevada, Case Number PR , appointing Amy L. Rosenlund, Guardian of the Estate of Leon Pantell, retired member of the Police Department, effective May 29,2007, has been filed with this office.

16 Page 16 DISCONTINUE GUARDIANSHIP - MINOR'S PENSION - TIER 2-1 Discontinue the pension payable to Denise R. Bryan as the Guardian of Shaina M. Bryan, Minor Child of deceased pensioner James J. Bryan, effective October 24,2007 due to the attainment of age 18. There is one remaining minor. DISCONTINUE GUARDIANSHIP - TIER 4-1 Discontinue the pension payable to Sharon Eaton as the Guardian of Brittany S. Byrnes, minor child of deceased Police Officer Paul C. Bymes, effective October 26,2007 due to the attainment of age 18. Pension benefits will be paid to Brittany S. Bymes, as she remains a full-time student. SURVIVING SPOUSE APPLICATION - TIER 5-1 Type: Name Rank % Rate Effective Date: Barbara E. Selleh Detective I11 NSC w/o Prejudice: 55% (George M. Selleh) DISCONTINUE DROP - CORRECTION - TIER 5-2 Police Ralph E. Morten Exit Close of: Correction to the spelling of the member's last name Greg M. DeRousseau Exit Close of: Correction to the member's date of retirement B. Other business relating to Department operations General Manager Perez informed the Board he attended a reception for the new Fire Chief Douglas Barry and many compliments were made of LAFPP staff. 19. CONSIDERATION OF FUTURE AGENDA ITEMS Commissioner Diannitto requested the Cushman and Wakefield matter be agendized for the next Board meeting. President Harrigan requested the Governance Committee look at Commissioners missing regular scheduled Board meetings to attend educational conferences and whether the Board should approve

17 Page 17 those travels that conflict with Board meetings. ~omrnissioner Keith requested Board Retreat be agendized. 20. PUBLIC COMMENTS There were none. 21. CONSENT ITEMS APPROVAL OF TRAVEL AUTHORITY - THE 1 6TH ANNUAL PUBLIC FUND BOARDS FORUM - DECEMBER 8-1 1, SAN FRANCISCO, CA (TWO COMMISSIONERS) A motion to approve the Consent Items was made by Commissioner Diannitto, seconded by Commissioner Aliano and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. Deputy City Attorney John Blair took the City Attorney chair at this time. 22. DISABILITY CASES DISABILITY CLAIM - NEW - TIER 5 Joseph R. Ward-Wallace (F) Firefighter I1 As recommended by staff and concurred in by the applicant, service connected disability pension is granted at 30% with no foreseeable purpose for review. Motion made by Commissioner Keith, seconded by Commissioner Broidy and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. Firefighter Ward-Wallace was not present. Burnis White I1 (PI Police Officer 111 (Retired) Prior benefit action of April 21, 2005 granting a service pension is rescinded and a service connected disability pension is granted commensurate to the service pension rate of % with no foreseeable purpose for review. Motion made by Commissioner Aliano, seconded by Commissioner Carter and adopted by the following vote: ayes, Commissioners Aliano, Broidy, Carter, Diannitto, Keith and President Harrigan - 6; nays, none. Sergeant Adam Schiffer, Medical Liaison, Los Angeles Police Department, testified regarding Mr. White. Mr. White was present and represented by his attorney, Tanya Garza.

18 Page 18 Larry Capra (p) Police Offlcer I1 + 6 Original motion to grant non-service connected disability pension at 50% for Crohn's Disease only, failed for lack of a second. The case was withdrawn at the request of the applicant's attorney. Police Psychologist Gerald Sweet, Ph.D., Behavioral Science Services, Los Angeles Police Department, testified regarding Officer Capra. Officer Capra was present and represented by his attorney, Steven M. Barry. The meeting adjourned at 1:45 p.m.