BOARD OF RETIREMENT FRESNO COUNTY EMPLOYEES RETIREMENT ASSOCIATION. January 16, 2013

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1 Trustees Present: Marion Austin Laura P. Basua Alan Cade, Jr. Dr. Rod Coburn Vicki Crow Eulalio Gomez Steven Jolly John Souza Others Present: BOARD OF RETIREMENT FRESNO COUNTY EMPLOYEES RETIREMENT ASSOCIATION January 16, 2013 Regina Wheeler, Alternate Trustee Andy Yeung, Segal Company Jose Ruiz, FCERA Member Art Wille, Deputy County Counsel Phillip Kapler, Retirement Administrator Becky Van Wyk, Assistant Retirement Administrator Elizabeth Avalos, Administrative Secretary 1. Call to Order Chair Gomez called the meeting to order at 8:35 AM. 2. Pledge of Allegiance Recited. 3. Public Presentations None. 4. Election of Chair and Vice Chair for the Calendar Year A motion was made by Trustee Case, seconded by Trustee Crow, to appoint Dr. Rod Coburn as Chair of the Board of Retirement for the calendar year VOTE: Unanimous A motion was made by Trustee Souza, seconded by Trustee Gomez, to appoint Alan Cade, Jr. as Vice Chair of the Board of Retirement for the calendar year VOTE: Unanimous Chair Coburn requested that Item 5 be moved to follow Item 20 to allow time to review the Board member s preferences on the Standing Committees.

2 2 A motion was made by Trustee Gomez, seconded by Trustee Souza, to move Item 5 to follow Item 20 as requested. VOTE: Unanimous 5. Discussion and appropriate action on appointments to the Retirement Board Standing Committees: Audit, Budget, Disability, Personnel and Consultant Evaluation Please see discussion following Item 20. Consent Agenda/Opportunity for Public Comment Trustee Cade pulled Item 6 for a separate vote as he was not in attendance at the December 19, 2012 Regular Board meeting. Trustee Basua pulled Item 16 for discussion and Chair Coburn pulled Items 14 and 19 for discussion. A motion was made by Trustee Crow, seconded by Trustee Gomez, to Approve Consent Items 7-13, 15, 17 and 18 as presented. VOTE: Unanimous *6. Approve the December 19, 2012 Retirement Board Regular Meeting Minutes A motion was made by Trustee Gomez, seconded by Trustee Crow, to Approve Item 6 as presented. VOTE: Yes Austin, Basua, Case, Coburn, Crow, Gomez, Jolly, Souza. Abstain Cade. ; APPROVED *7. Approve the January 9, 2013 Retirement Board Special Meeting Minutes ; APPROVED *8. Retirements ; APPROVED Larry R. Allred Public Works & Plan, Deferred 0.48 Primo Belmontez Sheriff Kristin R. Bengyel Dept of Social Services, Deferred 5.55 Toni P. Collins Dept of Social Services Marlene D. Frank Dept of Social Services Cecilia Gonzales Probation Tye T. Hafner Agriculture Robert C. Hullender Public Works & Planning Deborah Hutchinson Sheriff, Deferred 5.13 Jennifer A. Keran Dept of Social Services, Deferred 1.46 Pete D. Lascano Sheriff George W. Medina ITSD Sallie E. Negin VMC, Deferred 5.64 Mary Norman Dept of Social Services Michael M. Robinson Community Health Joseph Sebastian Dept of Social Services, Deferred 6.33

3 *9. Request to Rescind Deferred Retirements ; APPROVED Lee Yang Behavioral Health, Deferred 0.48 *10. Summary of monthly statistics from the Retirement Association Office on service credit purchases, retirement benefit estimates, public service, age adjustments, final compensation calculations, and disability retirement applications for December 2012 *11. Public Records Requests and/or Retirement Related Correspondence from Ron Madsen, FCERA Member; and Kevin Smith, SEIU *12. Board of Retirement Annual Attendance Report for the calendar year 2012 *13. Educational Reading Materials 3 January 6, 2013 Fresno Bee article Fresno County pension cuts create wide gap in benefits for new hires *14. Most recent investment returns, performance summaries and general investment information from investment managers At the request of Chair Coburn, Phillip Kapler, Retirement Administrator, gave brief updates on the on-site visit with Artisan Partners, Loomis Sayles consolidation, and the Standish Mellon mandate. A motion was made by Trustee Crow, seconded by Trustee Jolly, to Accept Item 14 as presented. VOTE: Unanimous *15. FCERA Cash Flow position as of November 2012 *16. Quarterly Trustee Travel Report and Anticipated Trustee Travel In response to concerns raised by Chair Coburn that the Trustee travel expenses have exceeded the annual budget by approximately $20,000, Phillip Kapler, Retirement Administrator, noted that the overall Trustee/Staff travel budget has not been exceeded.

4 4 In response to an inquiry from Chair Coburn as to whether funds should be transferred from the Staff travel budget to the Trustee travel budget in order to prevent an overage, Trustee Crow explained that it is not necessary to shift funds between the two budgets as long as the object level of the overall travel budget is not exceeded. Detailed discussions ensued regarding the importance of trustee and staff education and the processes in establishing the educational/travel budget. In response to concerns raised by Jose Ruiz, FCERA Member, that attendance at the educational conferences appears to be lopsided with only a few Trustee attending most of the conferences, the Board members explained that conferences are attended based on individual availability and need. Not all Trustees require the same education as their backgrounds and experiences are different. A motion was made by Trustee Gomez, seconded by Trustee crow, to Accept the report as presented. VOTE: Unanimous *17. Board of Supervisors approval of Safety Option Plan Two pursuant to the California Public Employees Reform Act (PEPRA) *18. One-Year Contract Extension Agreement with ABM Janitorial *19. Travel Request from Trustee Cade to attend the 18 th Annual Public Funds Summit March 14-15, 2013 in Huntington Beach, CA A motion was made by Chair Coburn, seconded by Trustee Souza, to Approve Item 19 as presented. VOTE: Unanimous ; APPROVED 20. Discussion and appropriate action on PEPRA Contribution Rates for the period January 1, 2013 through June 30, 2013 Andy Yeung, Segal Company, opened discussions with a brief overview of the proposed benefit changes for new General and Safety members under the CalPEPRA benefit formulas. Mr. Yeung noted that, other than the required formula changes and the elimination of the $3 per month per year of service benefit currently available to Safety Tier IV, all the other benefit provisions are assumed to be the same as those currently offered to General and Safety Tier IV members.

5 5 Mr. Yeung reviewed a comparison of the CalPEPRA benefit formulas to the current General and Safety Tier IV formulas noting that for the General CalPEPRA formula, Segal is assuming that new members would tend to retire somewhat later than is assumed for current General Tier IV members. The assumption is based on the expectation that new members may decide to retire later because of the lower benefit accruals under the new formula. For the Safety CalPEPRA formula, Segal continued to use the same retirement assumptions for current Safety Tier IV members except for the elimination of retirement assumptions before age 50. This is because the change in the benefit between Safety Tier IV and the Safety CalPEPRA formula is relatively small (the benefits before age 57 are slightly better under Tier IV than CalPEPRA, and vica versa after). Mr. Yeung noted that the recommended employer and member contribution rates shown in this report are applicable for the period from January 1, 2013 to June 30, The employer and member contribution rates for the fiscal year will be provided in a separate report. A motion was made by Trustee Austin, seconded by Vice Chair Cade, to Accept the report into the record and certify to the County Board of Supervisors. VOTE: Yes Austin, Basua, Cade, Case, Coburn, Crow, Gomez Jolly. No Souza. ; APPROVED 5. Discussion and appropriate action on appointments to the Retirement Board Standing Committees: Audit, Budget, Disability, Personnel and Consultant Evaluation Chair Coburn recommended appointments to the Standing Committees as follows: (changes noted in bold) Audit Committee Alan Cade, Jr. Chair Vicki Crow Steven J. Jolly Personnel Committee Marion Austin Chair Laura P. Basua John P. Souza Regina Wheeler Budget Committee Alan Cade, Jr. Chair Vicki Crow Steven J. Jolly Disability Committee Eulalio Gomez - Chair Dr. Rod Coburn, III Steven J. Jolly Consultants Evaluation Committee John P. Souza Chair Marion Austin Alan Cade, Jr. Eulalio Gomez A motion was made by Trustee Case, seconded by Trustee Gomez, to appoint the Standing Committee members as recommended. VOTE: Unanimous ; APPROVED

6 6 21. Closed Session: A. Disability Retirement Applications Personnel Exception (G.C ): 1. Esther Malone 22. Report from Closed Session 21.A.1. Nothing to report. 23. Report from FCERA Administration Phillip Kapler, Retirement Administrator, reported on the following: 1. Administration is working with Wurts & Associates on rebalancing the investment portfolio to get to the target allocation defined by the Board. Administration will agendize an update on the rebalancing as soon as practical. 2. Two FCERA staff will attend a CALAPRS Benefits Roundtable next month. 24. Report from County Counsel Art Wille, Deputy County Counsel, is preparing an educational presentation on the Brown Act to be presented in the near future. 25. Board Member Announcements or Reports Trustee Gomez noted that the November 2012 debit card account statement had not been agendized for Board review and requested that that Administration have the statement available and the February 6, 2013 Regular meeting. Mr. Kapler explained that staff had submitted their reconciliation timely, and that the reports are oh his desk pending final review. There being no further business the meeting adjourned at 11:08 AM. Phillip Kapler Secretary to the Board