DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) AMENDED MINUTES

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1 4 DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board 1221 State Street El Centro, CA AMENDED MINUTES REGULAR MEETING OF THE IMPERIAL COUNTY BOARD OF RETIREMENT October 17, :30 A.M. 940 W. Main Street County Administration Center, Second Floor El Centro, CA OPEN SESSION 1. The meeting was called to order by Chairman Vogel at 8:33 a.m. A. Roll Call: MEMBERS PRESENT: VOGEL, McDONALD, HOLBROOK, TERRAZAS, JAUREGUI, WILLIAMS, TABAREZ, MCFETRIDGE, RHODES, MEMBERS ABSENT: None MEMBERS ARRIVING AFTER ROLL CALL: None ALTERNATES PRESENT: Herbert Bumgart, Charles L. Jernigan LEGAL REPRESENTATIVES: Rosario Gonzalez, Deputy County Counsel CLERK: Kathleen L. Kubler, Retirement Specialist STAFF: David H. Prince, Retirement Administrator; Regina Rodrigues, Assistant Retirement Administrator; Kayleen Smith, Disability Specialist B. Pledge of Allegiance: The Pledge of Allegiance was led by Chairman Vogel.

2 OCTOBER 17, 2012 AMENDED MINUTES PAGE 2 2. Discussion of the Agenda: A. Items to be pulled from the Action Calendar: None B. Items to be pulled from the Discussion Calendar: None C. Items to be pulled from the Consent Agenda: None D. Emergency Items to be added: None E. Approval of the Agenda: MOTION by Tabarez, Second by Jauregui and carried by the unanimous vote of members present, the board approved the Agenda. F. Approval of the Consent Agenda: MOTION by McDonald, Second by Tabarez and carried by the unanimous vote of members present, the board approved the Consent Agenda. 3. Public comments on items that are NOT on the Action or Discussion Calendars. (Public comments on items that are on the Action or Discussion Calendars shall only be made during the Board s discussion of these items.): None ACTION CALENDAR 4. Approval of the Minutes of September 19, 2012, regular adjourned meeting: Board Member, Geoffrey P. Holbrook noted that he abstained from voting on Item 4. MOTION by Williams, Second by Holbrook and carried by a vote of six with two abstentions by Terrazas and Tabarez, the board approved the Minutes of September 19, 2012, as amended. 5. Dimensional Fund Advisors Annual Presentation: Ted Simpson, CFA, Vice President and Arthur H.F. Barlow, Portfolio Manager and Vice President: Mr. Simpson discussed asset performance tracking; executive personnel transitions within the firm; the firm s expansion to Asia; and the ongoing effort to provide reporting transparency of management fees and other expenses. Mr. Barlow highlighted the firm s year to date investments performance, the impact of the European financial crisis on the world market; and long term projections for investing.

3 OCTOBER 17, 2012 AMENDED MINUTES PAGE 3 6. Presentation by Scott J. Whalen, Executive Vice President, Senior Consultant, Wurts & Associates: A. Asset Allocation Review: Mr. Whalen discussed the system s assets performance and statistical forecast analysis with the board. The board agreed to hear a proposal for re-balancing of the assets allocation during the annual review at the regular meeting on February 20, B. Discussion/Action regarding Investments in Commodities: Direction was given to Wurts & Associates to work with staff to select active, passive, and standard commodity managers to present investment considerations and opportunities to the board at a meeting in the future. C. Discussion/Action regarding Asset/Liability Study: Mr. Wurts discussed the need to review the system s assets in order to realize investment risk. The study should also provide a clearer prospective of the funding ratio for paying future benefits. Wurts & Associates would conduct the study, for a fee of $25,000. The project should be completed in approximately six months. MOTION by Jauregui, Second by McDonald and carried by a vote of 8-1 No, by Williams, the board approved an Asset/Liability Study by Wurts and Associates. BREAK AT 9:40 A.M RECONVENED AT 9:50 A.M. 7. Review of Compensation Earnable Policy: A. AB 340 and AB 197: Presentation by Lance Kjeldgaard: Mr. Kjeldgaard discussed the provisions and implementation of the Public Employees Pension Reform Act (PEPRA). B. Discussion/Adoption of Policy for current members hired prior to January 1, 2013: MOTION by McDonald, Second by McFetridge and carried by a unanimous vote of members present, the board adopted the policy for current members hired prior to January 1, 2013.

4 OCTOBER 17, 2012 AMENDED MINUTES PAGE 4 C. Discussion/Adoption of Policy for members hired after January 1, 2013: MOTION by Holbrook, Second by McFetridge and carried by a unanimous vote of members present, the board adopted the policy for members hired on or after January 1, 2013, with an amendment to change the wording from Compensation Earnable to Pensionable Compensation. BREAK AT 10:55 A.M. RECONVENED AT 11:05 A.M. DISCUSSION CALENDAR 8. Reports/Correspondence/Announcements: A. Retirement Administrator: 1. Market Value Graph of the Retirement System s Assets: Mr. Prince briefly commented on the activity of the system s assets as presented by Mr. Whalen. 2. Book vs. Market Graph compares the Market Value of the system assets to the Book Value of Assets: Mr. Prince discussed the value of the system assets with the board. 3. Update on Security Lending Account with JP Morgan: Mr. Prince gave a status report to the board. 4. Update on Pension Administration Computer System (PAS): Mr. Prince and Mrs. Rodrigues gave the board a progress report of the project. 5. State Association of County Retirement Systems (SACRS) Fall 2012 Conference Agenda: Mr. Prince discussed the agenda of the upcoming conference with the board. 6. ICERS Annual Expense/Income Report: Mr. Prince reviewed the report s accounting details with the board. 7. Update on Active Members workshops: Mr. Prince discussed his hope that members will take advantage of the opportunities to discuss and evaluate their options prompted by the new pension legislation.

5 OCTOBER 17, 2012 AMENDED MINUTES PAGE 5 8. SACRS Conference Invitation Chart: B. Board Members: Mr. Prince reminded the board members that are attending the conference to reserve their attendance to events at the conference. Board Member McFetridge announced that the Imperial County Association of Retired Employees (ICARE) will be holding their annual retirees luncheon at the Eagles Hall in El Centro, on November 8, 2012 at 12 noon and invited all Board Members to attend. C. County Counsel: None 9. Convene to Closed Session: MOTION by Tabarez, Second by Holbrook and carried unanimously by members present, the board convened into Closed Session. CLOSED SESSION A. Conference with Legal Counsel Existing Litigation (Government Code (a).) disability retirement applications relating to the following: Joseph Romero Alfredo Osuna Balwant Dhaliwal Susie Tirado Jose Buelna B. Government Code Public Employee Performance Evaluation: Retirement Administrator OPEN SESSION 10. Announcement of Closed Session Action: Kathleen L. Kubler, Clerk of the Board, announced the following: The board discussed but took no action on the disability retirement applications of Joseph Romero, Balwant Dhaliwal, and Jose Buelna. The application of Susie Tirado for service connected disability retirement was administratively granted by vote of 9 to 0. The application of Alfredo Osuna for service connected disability retirement was administratively granted by a vote of 9 to 0. The board discussed and gave direction to staff on the Public Employee Performance Evaluation: Retirement Administrator.

6 OCTOBER 17, 2012 AMENDED MINUTES PAGE BUDGET: CONSENT AGENDA Approval of the following Budget claims for the remaining , to include Board Members in attendance at the 09/19/12 meeting, an Investment Funds Expense Summary, and a JPMorgan Cash Account Summary per Govt. Code & 31521: A. Administrative Budget B. Investment Expense Summary 12. Administrative Agenda: A. Enrollment of New Members to ICERS (11): Department Date Leon, Tania Public Health 08/24/2012 Sanchez, Heriberto Ag. Commissioner 08/24/2012 Solorio, Juanita Public Works 08/24/2012 Stoffel, Juan Public Works 08/24/2012 Curiel, Salvador Suprior Court 09/07/2012 Brandenberg, Laura M. District Attorney 09/07/2012 Fuentes, Olga Social Services 09/07/2012 Lopez, Josue R. Sheriff 09/07/2012 Martinez, Mayra Behavioral Health 09/07/2012 Safety Member Department Date Duenas, Bobby Fire 08/24/2012 Monreal, Steven Fire 08/24/2012 B. Terminations (6): Department Term Date Refund Carbajal, Ruby ICWDO 08/15/2012 $ 1, Gomez-Llanos, Mikim ICWDO 08/24/ , McLaughlin, Scott Public Health/Vector 08/15/2012 8, Morales, Virdiana G. Superior Court 08/17/2012 1, Sanabria, Saul ICWDO 08/09/ , SUBTOTAL: $ 71, Safety Members Department Term Date Refund Duarte, Eliria DRO/Deferred 09/28/2012 $ 44, TOTAL: $115,633.07

7 OCTOBER 17, 2012 AMENDED MINUTES PAGE 7 C. Service Retirement: 1. Margaret Rutledge Rabb Superior Court Effective: 08/10/2012 Age: Unmodified: $2, Sick Leave: Years Years Years 2. McDaniel, Zander Public Health Effective: 09/10/2012 Age: Unmodified: $1, Sick Leave: Years Years Years 3. Edmonds, Patricia Social Services/ Deferred Effective: 08/27/2012 Age: Unmodified: $ Years Years 4. Cotero, Emilio Safety/Inter-System HIDTA-Sheriff Effective: 07/01/2012 Age: Unmodified: $2, General Safety Years Years Years 5. Cardenas, Marina District Attorney/ Inter-system Effective: 08/12/2012 Age: Unmodified: $ Years Years

8 OCTOBER 17, 2012 AMENDED MINUTES PAGE 8 6. Benito, Norma General/Deferred Auditor Effective: 10/06/2012 Age: Unmodified: $ Years Years 7. Dorothy G. Wolf Superior Court Effective: 09/07/2012 Age: Unmodified: $1, Sick Leave: Years Years Years D. 100% Continuance of Service Connected Disability Retirement Allowance Per Govt. Code Section & Death Benefit: Nunez, Arnoldo Deceased: 09/21/2012 Beneficiary 100% Continuance: $1, Beneficiary pro-rated allowance: Retiree pro-rated allowance: Death Benefit: 5, $6, E. Deferred Membership: Valdivia, Dania Tax Collector Effective: 06/23/2012 Sick Leave: Years Years Years F. Medical Leave Buy-Back: Jose Montesinos Service Credit : Public Works Years Lump Sum:

9 OCTOBER 17, 2012 AMENDED MINUTES PAGE 9 G. Military Leave Buy-Back: Montesinos, Jose Public Works Service Credit: Years Installments: $ = $2, H. Redeposit Buy-Back: Ochoa-Rodriguez, Alejandra Social Services 13. Manager Reports: Service Credit: Years Installments: $ = $1, T. Rowe Price Investment Report August Conferences & Seminars: Public Funds Summit January 8-10, 2013 Scottsdale, AZ OTHER ITEMS 15. Previously Approved Seminars/Conferences (list available in Retirement office). Adjournment: Meeting was adjourned at 12:18 p.m. to November 21, 2012 at 8:30 a.m. KAREN VOGEL, Chairman NORMA K. JAUREGUI, Secretary