DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board

Transcription

1 DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board 1221 State Street El Centro, CA BRIEF MINUTES REGULAR MEETING OF THE IMPERIAL COUNTY BOARD OF RETIREMENT December 19, :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 8:35 a.m. A. Roll Call: MEMBERS PRESENT: VOGEL, McDONALD, HOLBROOK, JAUREGUI, WILLIAMS, TABAREZ, MCFETRIDGE, RHODES. MEMBERS ABSENT: TERRAZAS MEMBERS ARRIVING AFTER ROLL CALL: None ALTERNATES PRESENT: Herbert Bumgart, Charles L. Jernigan LEGAL REPRESENTATIVES: Rosario Gonzalez, Deputy County Counsel CLERK: Kayleen Smith, Retirement Specialist STAFF: David H. Prince, Retirement Administrator, Regina Rodrigues, Assistant Retirement Administrator B. Pledge of Allegiance: The Pledge of Allegiance was led by Chairman Vogel. 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

2 December 19, 2012 BRIEF MINUTES PAGE 2 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 Holbrook, 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 November 21, 2012, regular adjourned meeting: MOTION by Holbrook, Second by Jauregui and carried by a vote of 7-0, with one abstention by McFetridge and one absence by Terrazas, the Board approved the Minutes of the November 21, 2012, regular adjourned meeting. 5. Franklin Templeton Institutional: Thomas J. Dickson, Senior Vice President, Institutional Relationship Manager, U. S. Institutional Client Service: Annual Review. Mr. Dickson announced the recent passing of their CIO Gary Martal and reviewed the new Global Equity Group s team members. He discussed their investment philosophy and strategy. He reviewed the historical performance of our portfolio by sector as well as by country. The Board expressed their concerns regarding performance. Mr. Dickson addressed the Board s questions and discussed the portfolio characteristics and the global economy. 6. Request by Imperial County Transportation Commission, Executive Director Mark Baza, for the inclusion of cashed out Paid Time Off (PTO) as a compensation earnable for current employees. Mr. Prince explained the items included in ICTC s cashed out Paid Time Off compensation. He discussed the compensation earnable items for current County employees as compared to ICTC s request. MOTION by Tabarez, Second by McFetridge and carried by the unanimous vote of members present, the Board approved the request that cashed out paid time off (PTO) at retirement for current ICTC employees by classified as compensation earnable. BOARD MEMBER McDONALD LEFT AND ALTERNATE BUMGART TOOK HER SEAT

3 December 19, 2012 BRIEF MINUTES PAGE 3 7. The Segal Company: Andy Yeung, ASA, MAAA, EA, Vice President & Associate Actuary: Review of Actuarial Report. Mr. Yeung discussed the actuarial valuation and review report as of June 30, He reviewed the preceding year s experience study and the actuarial data used to establish the funding requirements. He discussed the Employers rates as well as the Members rates for General and Safety members. Mr. Yeung discussed the new benefit formulas under the California Public Employees Pension Reform Act of 2013 (CalPEPRA) for new General and Safety members. He explained the new tier of benefit for new members entering the system after January 1, 2013 as well as the contribution rates under the CalPEPRA formula. MOTION by Williams, Second by Tabarez and carried by a unanimous vote of members present, the Board accepted the Actuarial Report of June 30, 2012, the CalPEPRA Report and Side Letter. MOTION by Williams, Second by Bumgart and carried by a roll call vote of 5 to 3 with 1 absence (Yes Vogel, Williams, Tabarez, Rhodes and Bumgart; No Holbrook, Jauregui, and McFetridge; Absent: Terrazas), the Board adopted the Employer/Employee contribution rates for all three time periods based on the June 30, 2012 actuarial valuation. BREAK AT 10:30 A.M. RECONVENED AT 10:40 A.M. 8. Nomination and Election of Retirement Board Officers for MOTION by McFetridge, Second by Vogel and carried by the unanimous vote of members present, the Board elected Pompeyo Tabarez, Jr., Safety Member, as the Chairman of the Retirement Board for MOTION by McFetridge, Second by Pompeyo Tabarez, Jr., and carried by the unanimous vote of members present, the Board elected Norma Jauregui, Appointed Public Member, as the Vice-Chairman of the Retirement Board for MOTION by Vogel, Second by Pompeyo Tabarez, Jr., and carried by the unanimous vote of members present, the Board elected Geoffrey Holbrook,, as the Secretary of the Retirement Board for Discussion/Adoption: Board Policy and Procedure on Board Assessment of Compensation and Procedure for Review of Board Compensation Decisions, by Deputy County Counsel Rosario Gonzalez. Ms. Gonzalez reviewed the proposed policy implementing the new rules under the Pension Reform Act of Due to Assembly Bill No. 340, the Board is mandated to adopt a policy and procedure regarding compensation decisions. The Board discussed the proposed procedure for assessment and determination of items included in a member s final compensation. The Board concluded that the Hearing Officer portion of the policy be eliminated.

4 December 19, 2012 BRIEF MINUTES PAGE 4 MOTION by Holbrook, Second by McFetridge and carried by a unanimous vote of members present, the Board adopted the proposed policy with amendments. 10. Discussion/Adoptions: Board Policy on Audit of Compensation and Retirement Information, by Deputy County Counsel Rosario Gonzalez. Ms. Gonzalez reviewed the proposed policy regarding the auditing requirement under the new rules of the Pension Reform Act of The Board discussed the procedure and documents requested from an employer to determine the correctness of retirement benefits, reportable compensation, and enrollment in, and reinstatement to, the retirement system. MOTION by Holbrook, Second by Tabarez and carried by a unanimous vote of members present, the Board adopted the proposed policy. DISCUSSION CALENDAR Item 11 is for discussion only. Items requiring action will be placed on a future agenda. 11. Reports/Correspondence/Announcements: A. Retirement Administrator: 1. Market Value Graph of the Retirement System s Assets. Mr. Prince reviewed the market value and investment fund reallocation for the month ending November 30, He stated that the system was up 1.23% for the month of November and up almost 6.5% for the first five months of the fiscal year 2. Book vs. Market Graph compares the Market Value of the system s assets to the Book Value of Assets. Mr. Prince discussed the current and upcoming activities of the system s assets. 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). Ms. Rodrigues stated that we are continuing to make progress with the new system. Active payroll will run exclusively in the new system beginning in January. Retiree payroll will be run parallel in both systems for the next few months. The 1099Rs will be processed through the old system this year. Ms. Rodrigues informed the Board that the Disaster Recovery warm site is operational and performing nightly dumps of our database and refreshing the system every two weeks.

5 December 19, 2012 BRIEF MINUTES PAGE 5 5. SB13-Proposed changes to AB340. Mr. Prince discussed the proposed changes to AB340 due to the submission of Senate Bill No. 13, which is currently being negotiated with the House. B. Board Members: None. C. County Counsel: 1. Opinion on the cost of data plans for Board Member owned electronic devices. Ms. Gonzalez opined that a data plan for a privately owned device is not necessarily an expense of attending the meeting. However, the Board may choose to develop and implement a clear and detailed policy with protections and restrictions on ICERS owned equipment. 2. Opinion of Educational Hours Credit for Board Members for Fall 2012 SACRS Conference. 12. Convene to Closed Session: Ms. Gonzalez opined that since the Board enacted the policy regarding AB1519 in September, then education received after that date can be applied to the Board Member s educational requirement. MOTION by Jauregui, Second by Williams and carried by a unanimous vote of 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: Kevin White Jose Buelna Margaret Navarro Linda G. Bruce OPEN SESSION 13. Announcement of Closed Session Action: Kayleen Smith, Retirement Specialist, announced the following action was taken in Closed Session: The Board discussed but took no action on the disability retirement applications of Jose Buelna, Linda Bruce, Margaret Navarro and Kevin White.

6 December 19, 2012 BRIEF MINUTES PAGE BUDGET: CONSENT AGENDA Retirement Administrator recommends approval of Items 14 through 17 Approval of the following Budget claims for the remaining , to include Board Members in attendance at the 11/21/12 meeting, an Investment Funds Expense Summary, and a JPMorgan Cash Account Summary per Govt. Code & 31521: A. Administrative Budget B. Investment Expense Summary 15. Administrative Agenda: A. Enrollment of New Members to ICERS (26): B. Terminations (1): C. Service Retirement: Alicia Marquez Courts Effective Date: 10/19/2012 D. 100% Continuance of Service Retirement Allowance per Govt. Code Section & Death Benefit: Max Aragon Deceased: 08/04/2012 E. Final Payment of Service Retirement Allowance & Death Benefit per Govt. Code Section : Fred Trask Deceased: 11/26/2012 F. Final Payment of Survivor Service Retirement Allowance per Govt. Section : Fred Trask: Deceased: 11/26/2012 G. Deferred Membership: 1. Balwant Dhaliwal Public Works Effective: 09/25/2012

7 December 19, 2012 BRIEF MINUTES PAGE 7 2. Jill Cremeans-Overholt Public Defender Effective: 11/01/2012 H. Intersystem Member: 1. Jessica Lorona Behavioral Health Effective: 08/10/ Teresa Marie Smith Behavioral Health Effective: 10/25/ Ronald Donohue Jr. Safety Member Sheriff s Effective: 02/28/2012 I. Medical Leave Buy Back: Lazaro Sardin Behavioral Health J. Make-Up Buyback: Jorge Pacheco Public Works 16. Manager Reports: T. Rowe Price Investments Report- October 31, Conferences & Seminars: A. National Conference on Public Employee January 27-29, 2013 Retirement Systems (NCPERS), Legislative Capital Hilton Hotel in Conference Washington, D.C. B. California Association of Public Retirement Systems (CALAPRS), Board Leadership January 29-31, 2013 Institute, Advanced Principles In Governance University of California Los Angeles (UCLA) C. Dimensional Fund Advisor s 2013, Investment February 4-6, 2013 Symposium Dimensional Headquarters Austin, Texas

8 December 19, 2012 BRIEF MINUTES PAGE 8 OTHER ITEMS 18. Previously Approved Seminars/Conferences (list available in Retirement office). Adjournment: Meeting was adjourned at 11:45 a.m. to January 16, 2013 at 8:30 a.m. KAREN VOGEL, Chairman NORMA K. JAUREGUI, Secretary