MIN UTE S
OF THE
BOARD OF PENSION COMMISSIONERS
MEETING OF MARCH 10, 1983
The Board of Pension Commissioners of the City of Los Angeles met in
Room 155, City Hall South, on Thursday, March 10, 1983.
COMMISSIONERS PRESENT:
Arthur Burdorf, President
Garo V. Minassian, Vice-President
Sam Diannitto
Olga Marcus
Karl L. Moody
David Bow Woo
COMMISSIONER ABSENT:
Bert R. Cohen
DEPARTMENT OF PENSIONS:
Gary Mattingly, General Manager
James J. McGuigan, Asst. Manager-Fiscal
Wm. S. Hutchison, Asst. Manager-Benefits
CITY ATTORNEY'S OFFICE:
Siegfried o. Hillmer, Asst. City Attorney
Mary Jo Curwen, Deputy City Attorney
Beverly Mosley, Deputy City Attorney
President Burdorf called the meeting to order at 9:10 a.m. and referred to
Item No. 1 on the Agenda.
PRESENTATION OF THE MINUTES OF JANUARY 27, 1983; FEBRUARY 3, 1983;
AND FEBRUARY 10, 1983
The General Manager withdrew the February 10, 1983 Minutes from the
motion. Commissioner Marcus made the motion for approval, with the
February 10, 1983 Minutes omitted, which motion was seconded by
Commissioner Diannitto and adopted by the following vote:
ayes,
Commissioners Diannitto, Marcus, Moody and President Burdorf - 4; noes,
none.
INVESTMENTS
The General Manager informed the Board that The Boston Company sent a
letter transmitting their bond purchases; that Security Pacific National
Bank sent a letter transmitting their stock purchases and sales; and that
Chemical Bank sent a letter transmitting their stock purchases and sales
and investment listing, but that no action was required on any of the
above.
The General Manager said a motion was required on a list from
Chemical Bank adding stocks to its stock universe.
STOCK PURCHASE RESOLUTION NO. 83044
2525 NEW SYSTEM GENERAL PENSION FUND
After discussion by the Board, it was moved by Commissioner Diannitto that
upon the advice of Investment Counsel, the Manager-Secretary and/or
Chemical Bank Investment Management be authorized to purchase up to
$3,500,000 of capital stock in each of the following companies at the
market, plus commission and charges:
Abbott Labs
Aetna Life & Gas Co.
Air Products & Chemicals, Inc.
Alcan Aluminum
Allied Corp.
Aluminum Co. America
American Broadcasting
American Cyanamid Co.
American Express Co.
American Greetings Corp.
American Home Products
American Hospital Supply
American Int'l. Group
American Telephone & Telegraph Co.
AMP, Inc.
Anheuser Busch Cos., Inc.
Archer Daniels Midland
Arizona Public Service
ARKLA, Inc.
Armco, Inc.
Armstrong World Industries, Inc.
Asarco, Inc.
Ashland Oil, Inc.
Atlantic Richfield Co.
Automatic Data Processing
Avnet, Inc.
Avon Products, Inc.
BankAmerica Corp.
Bankers Trust NY Corp.
Barnett Banks Florida, Inc.
Baxter Travenol Labs
Beatrice Foods Co.
Becton Dickinson & Co.
Bell Canada
Bell & Howell Co.
Bethlehem Steel Corp.
Betz Labs, Inc.
Big Three Industries, Inc.
Black & Decker Mfg. Co.
Boeing Co.
Borden, Inc.
Borg Warner
Briggs & Stratton Corp.
Bristol Myers Co.
Brown Group
Brown Forman Distillers
Burlington Northern, Inc.
Burlington Industries
Burndy Corp.
Burroughs Corp.
Campbell Taggart, Inc.
Capital Cities Communications
Carlisle Corp.
Caroline Power & Light Co.
Carpenter Technology
Caterpillar Tractor Co.
CBI Industries, Inc.
CBS, Inc.
Celanese Corp.
Central & So. West Corp.
Celeron
Cental Corp.
Cessna Aircraft Co.
Champion Int'l. Corp.
Chase Manhattan Corp.
Chern Nuclear Systems, Inc.
Chesebrough-Pond's, Inc.
Chubb Corp.
CIGNZ
Cincinnati Milacron
Citicorp
Cleveland Cliffs Iron
Clorox Co.
Coca Cola Co.
Colgate Palmolive Co.
Collins & Aikman Corp.
Colt Industries, Inc. Delaware
Combined Int'l. Corp.
Combustion Engineering, Inc.
Commonwealth Edison Co.
Community Psychiatric
Consolidated Edison
Consolidated Freightways
Consolidated Natural Gas
Continental Corp.
Continental Telecom
Cooper Industries, Inc.
Corning Glass Works
Cox Broadcasting Corp.
CPC Int'l., Inc.
Cross A. T. Co.
Cross & Trecker Corp.
Crum & Forster
CSX Corp.
Dana Corp.
Dart & Kraft
Dayton Hudson Corp.
Deluxe Check Printers
Deere & Co.
Delta Airlines Delaware
Detroit Edison
Dizney, (Walt) Productions
Donnelley, (R.R.) & Sons
Dover Corp.
Dow Chemical Co.
Dresser Industries, Inc.
DuPont (E.I.) DeNemours
Duke Power Co.
Dun & Bradstreet Corp.
Duriron, Inc.
E System, Inc.
Eastman Kodak Co.
Eckerd, (Jack) Corp.
Emerson Electric Co.
Emhart Corp., Virginia
Engelhard Corp.
Ex-Cell-O Corp.
Exxon Corp.
Federal Co.
Federal Mogul Corp.
Federated Dept. Stores
Financial Corp. of America
First City Bancorp, Texas
Florida Power & Light Co.
Fluor Corp.
Foxboro Co.
Gannett, Inc.
GEICO Corp.
General Electric Co.
General Foods Corp.
General Instruments Corp.
General Mills, Inc.
General Motors Corp.
General RE Corp.
General Signal Corp.
Genuine Parts Co.
Georgia Pacific Corp.
Getty Oil Co.
Goodyear Tire & Rubber
Gould, Inc.
Goulds Pumps, Inc.
Grace, (W.R.) & Co.
Grainger, (W.W.), Inc.
GTE Corp.
Gulf Oil Corp.
Halliburton Co.
Harris Corp., Delaware
Hart Schaffner & Marx
Harte Hanks Communications, Inc.
Heinz, (H.J.) Co.
Helmerich & Payne, Inc.
Hercules, Inc.
Hewlett Packard Co.
Hilton Hotels Corp.
Hitachi, Ltd.
Holiday Inns, Inc.
Homestake Mng. Co.
Honeywell, Inc.
Hospital Corp. America
Houston Industries, Inc.
Houston Natural Gas Corp.
Hughes Tooi Co.
Humana, Inc.
Hutton, (E.F.) Group
INCa Ltd.
Ingersol Rand Co.
Inland Steel
Interco, Inc.
International Business Machines
International Flavors & Fragrances
International Minerals & Chemicals
International Paper Co.
International Telephone & Telegraph
Interpace Corp.
Irving Bank Corp.
James River Corp.
Jewel Cos., Inc.
Johnson & Johnson
Joy Manufacturing Co.
K Mart Corp.
Kannametal, Inc.
Kerr McGee Corp.
Keystone Int'l., Inc.
Kimberly Clark Corp.
Kyoto Ceramic Ltd.
Leaseway Transportation Corp.
Lenox, Inc.
Lifemark Corp.
Lilly, (Eli) & Co.
Litton Industries, Inc.
Lone Star Industries, Inc.
Lubrizol Corp.
Macy, (R.H.) & Co., Inc.
Manufacturers Hanover
Marriott Corp.
Marsh & McLennan Companies
Martin Marietta Corp.
Masonite Corp.
May tag Co.
MCA, Inc.
McDermott, Inc.
McDonalds Corp.
McGraw Hill, Inc.
Melville Corp.
Merck & Co., Inc.
Merrill Lynch
Mesa Petroleum Co.
Metromedia, Inc.
Midcon Corp.
Millipore Corp.
Minnesota Mining & Mfg. Co.
Mobil Corp.
Monsanto Co.
Morgan, (J.P.) Co., Inc.
Morton Norwich Products
Motorola, Inc.
Nalco Chemical Co.
National Med. Care, Inc.
NCR Corp.
Newmont Mining Corp.
Nicor, Inc.
Nielson Co., Class A
Nippon Electric Ltd.
NL Industries, Inc.
Noble Affiliates, Inc.
Nordstrum, Inc.
Norfolk Southern
Northern Telecom Ltd.
Northern States Pwr., Minnesota
Northrop Corp.
Northwest Airlines, Inc.
Northwest Bancorp
Occidental Petroleum Corp.
Ohio Casualty Corp.
Owens Corning Fiberglass
Pacific Gas & Electric Co.
Paine Webber
Payless Cashways, Inc.
Penney, (J . C.), Inc.
Pennwalt Corp.
Perkin Elmer Corp.
Petrie Stores Corp.
Petro lane , Inc.
Pfizer, Inc.
PHH Group, Inc.
Phibro Salomon, Inc.
Philip Morris, Inc.
Phillips Petroleum Co.
Piedmont Aviation, Inc.
Pioneer Corp, Texas
Pioneer Hi Bred Int'l.
Pitney Bowes
PPG Industries, Inc.
Procter & Gamble Co.
Provident Life & Acc. Insurance
Pulte Horne Corp.
Quaker Oats
Ralston Purina
Raytheon Co.
RCA Corp.
Republic Bank Corp.
Revco, D.S., Inc.
Revlon, Inc.
Reynolds Metals Co.
Reynolds, (R.J.) Ind., Inc.
Rite Aid Corp.
Roadway Services
Rockwell Int' l.
Rohm & Haas
Royal Dutch Petroleum
Ryland Group, Inc.
San Diego Gas & Electric Co.
Scher ling Plough Corp.
Schlumberger Ltd.
Seafirst Corp.
Seagram Ltd.
Sealed Power Corp.
Searle, (G.D.) & Co.
Sears, Roebuck & Co.
Sedco
Servicemaster, Industries, Inc.
Shell Oil Co.
Shoney's
Signal Companies, Inc.
Smith Int'l., Inc.
SmithKline Beckman
Snap-On Tools Corp.
Sony Corp.
Southern California Edison
Southwest Airlines
Sperry Corp.
Square D Co.
Squibb Corp.
Standard Brands Paint
Standard Oil Co. (Calif.)
Standard Oil Co. (Indiana)
Standard Oil Co. (Ohio)
Stauffer Chemical Co.
Sterling Drug, Inc.
Stone Container Corp.
Stop & Shop Companies, Inc.
Stride Rite
Sun Banks of Florida
Sun, Inc.
Sundstrand Corp.
Superior Oil Co.
Syntex Corp.
Tektronix
Tenneco, Inc.
Texaco, Inc.
Texas Commerce Bancshares
Texas Gas Transmission
Texas Instruments, Inc.
Texas Oil & Gas Corp.
Texas utilities
Thomas & Betts Corp.
Time, Inc.
Transamerica Corp.
Travelers Corp.
TRW, Inc.
Tucson Electr ic
Tyco Labs, Inc.
Unileveler N.V.
Union Camp Corp.
union Carbide Corp.
Union Oil Co. (California)
union Pacific Corp.
united Energy Resources, Inc.
U.S. Bancorp
U.S. Gypsum
U. S. Shoe
U.S. Steel
United Technologies
United Telecommunications
Upjohn Co.
USF & G Corp.
Varian Associates, Inc.
VF Corp.
Virginia Electric & Power
Wal Mart Stores, Inc.
Wang Laboratories, Inc.
Warner Communications
Warner Lambert Co.
Waste Management, Inc.
Watkins Johnson Co.
Weyerhaeuser Co.
Whirlpool Corp.
Wisconsin Electric Power Co.
Xerox
Yellow Freight Systems
CHEMICAL BANK
SECTION IV-2B STOCK UNIVERSE
Advanced Micro Devices
Arrow Electronics
Chicago & Northwest Transportation
City Federal Savings & Loan
Color Tile
Computervision
Cray Research
Data General
Datapoint
Digital Equipment
Federal Express
Ford Motor
John Fluke Manufacturing
GenRad
INTEL
MIA Com., Inc.
MCI Communications
Phelps Dodge
Prime Computer
PSA
Raychem
Rolm
Sanders Associates
Tandem Computers
Tandy
Teledyne
Toys R Us
Tymshare
Trans World Corp.
U.S. Air
UAL
Uniroyal
Warnaco
Zayre
The authorization for stock purchase is to remain in effect for 90 days
after this date. The motion was seconded by Commissioner Moody and
adopted by the following vote:
ayes, Commissioners Diannitto, Marcus,
Moody and President Burdorf - 4; noes, none.
OLD BUSINESS
The General Manager, Mr. Gary Mattingly, referred to a memorandum from
Lorraine Osuna, Administrative Assistant, explaining why H.R. 100 and S.
372, Federal Fair Insurance Practices Bills, do not affect the Fire and
Police Pension System.
Mr. Mattingly reported to the Board that the Ad Hoc Committee on Revisions
to the Pension Systems will meet next Tuesday, March IS, 1983, and that he
has been informally advised that the only two items to be discussed will
be:
a) a Charter change to require the three retirement Boards of the
City to hire a consultant for advice on asset allocation, and b) a
Charter change to prohibit the appointment of any brokers/dealers to the
three retirement Boards.
At this point in the proceedings, Commissioner Minassian entered the Board
room.
Mr. Mattingly referred to a letter he prepared to the Ad Hoc Committee.
After discussion, President Burdorf said to include in the letter the
Board's concern about the possibility that securities brokers would be
prohibited from serving on the Board; and to also let the Committee know
that this Board has for some time required all of its investment advisors
to reach a consensus, at least quarterly, regarding an asset allocation
recommendation.
NEW BUSINESS
Mr. Mattingly said he was contacted by Mr. Oppenheimer, a reporter for the
City News Service, regarding the recent disability pension of Milburn
Bolton.
Commissioner Marcus made reference to a conference on "How to Run
Successful Retirement Planning Programs" which will be held in New York in
May and suggested that the Commissioners who will be visiting the
custodial services could possibly attend this conference.
President
Burdorf asked staff to schedule this item on the next Agenda.
APPROVAL OF PILOT PROGRAM FOR HEARING OFFICERS
Mr. Mattingly referred to his memorandum to the Board regarding the
proposed pilot program for use of hearing examiners in disability
application hearings. Mr. Ralph Travis, a representative from the united
Firefighters of Los Angeles City, came forward and expressed concern about
the applicants not being notified that they are entitled to employee
representation.
President Burdorf directed staff to be sure each
applicant receives the applicable Board Rule that applies to this issue.
Mr. Mattingly said he will let the Board members know which applicants are
being selected for this pilot program each week under Old Business.
After discussion by the Board, Commissioner Diannitto moved that the Board
adopt the proposed pilot program for use of hearing examiners in
disability application hearings as set forth by the General Manager, which
motion was seconded by Commissioner Moody and adopted by the following
vote:
ayes, Commissioners Diannitto, Marcus, Minassian, Moody and
President Burdorf - 5; noes, none.
DISCONTINUE PENSIONS - ARTICLE XVII - 2
Edna M. Haggman
Inez S. Maxwell
Police Widow
Police widow
Retired 01-06-75
Retired 06-23-57
Died 01-13-83
Died 11-10-82
Approved. Motion by Commissioner Minassian, seconded by Commissioner Marcus and
adopted by the following vote:
ayes, Commissioners Diannitto, Marcus, Minassian,
Moody and President Burdorf - 5; noes, none.
DISCONTINUE PENSIONS - ARTICLE XVIII - 1
John R. Kiel
Police Service
Retired 02-03-72
Died 12-10-82
Approved. Motion by Commissioner Marcus, seconded by Commissioner Moody and
adopted by the following vote:
ayes, Commissioners Diannitto, Marcus, Minassian,
Moody and President Burdorf - 5; noes, none.
SERVICE PENSIONS - ARTICLE XVII - 1
POLICE
Police Officer III
Paul Nelson
Appt'd
Eff:
10-24-60
02-02-83
22 Years, 78 Days
Mo. Sal: $3,060.66
44.3726%
$1,358.09
Approved. Motion by Commissioner Moody, seconded by Commissioner Diannitto and
adopted by the following vote:
ayes, Commissioners Diannitto, Marcus, Minassian,
Moody and President Burdorf - 5; noes, none.
SERVICE PENSIONS - ARTICLE XVIII - 5
FIRE
Engineer
Jerry L. Jackson
Appt'd
Eff:
02-10-58
02-20-83
25 Years, 10 Days
NPB: $2,996.78
55.0822%
$1,650.69
Firefighter II
David B. McRae
Appt'd
Eff:
02-03-58
02-15-83
25 Years, 4 Days
NPB: $2,761.98
55.0000%
$1,519.09
Sergeant II
Gary S. Derks
Appt'd
Eff:
02-04-63
02-06-83
20 Years, 2 Days
NPB: $3,346.02
40.0110%
$1,338.78
Sergeant I
William F. Mortimer
Appt'd
Eff:
02-04-63
02-09-83
20 Years, 1 Day
NPB: $3,306.89
40.0000%
$1,322.76
Police Officer III
Anselmo S. Flores
Appt'd
Eff:
02-08-60
01-11-83
22 Years, 217 Days
NPB: $2,911.02
45.1781%
$1,315.14
POLICE
Approved. Motion by Commissioner Diannitto, seconded by Commissioner Minassian
and adopted by the following vote: ayes, Commissioners Diannitto, Marcus,
Minassian, Moody and President Burdorf - 5; noes, none.
WIDOW'S OR WIDOWER'S PENSION - ARTICLE XVII - 1
Fluctuating
Name
Member's
Class
Irene Rucker
(John H. Rucker)
Fire
Service
Sal. Rank
at Date
of Death
Rate
%
Effective
Date
Monthly
Amount
$3,292.08
50%
02-04-83
$1,646.04
Approved. Motion by Commissioner Minassian, seconded by Commissioner Marcus and
adopted by the following vote: ayes, Commissioners Diannitto, Marcus, Minassian,
Moody and President Burdorf - 5; noes, none.
WIDOW'S OR WIDOWER'S PENSION - ARTICLE XVII - 1
Name
Member's
Class
Monthly
Salary
Rate
%
Thelma L. Kelman
(William C. Kelman)
Fire
Service
$
40%
01-28-83
Member's CIL
Total
865.50
Effective
Date
Monthly
Amount
$
$
350.00
506.51
856.51
The General Manager read two corrections into the record. One change in the
adjustment of cost of living increase for Thelma L. Kelman in Item No. 11, and a
correction in Item No. 12 under Luella R. Kiel.
Approved as amended. Motion by Commissioner Marcus, seconded by Commissioner
Moody, including the change, and adopted by the following vote: ayes,
Commissioners Diannitto, Marcus, Minassian, Moody and President Burdorf - 5;
noes, none.
ELIGIBLE SURVIVING SPOUSE'S PENSION - ARTICLE XVIII - 2
Name
Member's
Class
Normal
Pen. Base
Rate
%
Effective
Date
Monthly
Amount
Linda Hardwick
(Richard H. Hardwick)
Police
Disab.
$2,641. 32
50%
01-28-83
2 Minors @ 40%
Total
$1,320.66
528.26
$1,848.92
Luella R. Kiel
(John R. Kiel)
Police
Service
$1,362.41
44%
12-11-82
Member's CIL
Total
$
599.46
652.80
$1,252.26
Approved. Motion by Commissioner Moody to read as corrected, seconded by
Commissioner Diannitto and adopted by the following vote: ayes, Commissioners
Diannitto, Marcus, Minassian, Moody and President Burdorf - 5; noes, none.
FINDINGS OF FACT - ARTICLE XVIII - 6
FIRE
A.
Neco Hansen
B.
Bernard D. Loeb
B.
John T. Magno
POLICE
A.
Homer J. Erickson
D.
Ramey Stroud
C.
Joel G. Rose
Approved. Motion by Commissioner Diannitto, seconded by Commissioner Minassian
and adopted by the following vote: ayes, Commissioners Diannitto, Marcus,
Minassian, Moody and President Burdorf - 5; noes, none.
At this point in the proceedings, President Burdorf recessed the meeting for
fifteen minutes. The meeting resumed at 10:20 a.m.
DISABILITY CASE - NEW - ARTICLE XVIII - 2
Police Officer III Ralph M. Sacco
Denied. Able to perform duties to which he may be assigned. Motion made by
Commissioner Moody and seconded by Commissioner Marcus; ayes, Commissioners
Diannitto, Marcus, Minassian, Moody and President Burdorf - 5; noes, none. Capt.
Richard J. Stevens, Commanding Officer, Police Department; Lt. Arthur R.
Melendres, Supervisor, Police Department; Steve Hatfield, Civilian Supervisor,
Police Department; Capt. Stanley Kensic, Commanding Officer, Police Department,
and Sgt. Lyall Pearcy, Supervisor, Police Department, testified regarding Mr.
Sacco. Mr. Sacco was present with his attorney, Michael Roberts.
At this point in the proceedings, President Burdorf recessed the meeting for
lunch.
Police Officer II Donald G. Bontempo
Denied. Able to perform the duties to which he may be assigned. Motion made by
Commissioner Woo and seconded by Commissioner Moody; ayes, Commissioners
Diannitto, Marcus, Minassian, Moody, Woo and President Burdorf - 6; noes, none.
The following employees testified regarding Mr. Bontempo: Officer John
Landtiser, Co-worker, Hollywood area; Officer Joe Beaumen, Co-worker, Hollywood
area; Sgt. Robert Normandy, Supervisor, Hollywood area; Sgt. John Wells,
Supervisor (former), West Los Angeles area; Sgt. Richard Walker, Personnel
Complaint Investigator, Internal Affairs Division; Mr. William B. Gilstrap, 7-11
Stores, former officer L.A.P.D.; Mr. Marshall Sevin, Specialist Reserve Police
Officer, West Los Angeles area and Lt. Ed Gagnon, Medical Liaison Officer, Police
Department. Mr. Bontempo was present with his attorney Mary Ann Healy.
During the hearing of the Donald Bontempo case, President Burdorf deferred the
last two disability cases that were to be heard today because of time
constraints, and Attorney Robert Scott raised concern over this issue of
deferring disability cases on the day of the hearing. The Board asked staff to
work on a solution to this problem.
DISABILITY CASE - COURT-ORDERED REHEARING - ARTICLE XVIII - 1
Police Officer II Ruben Montez
Deferred.
President Burdorf directed that this case be deferred due to time
constraints. Mr. Montez was present with his attorney, Bob Scott.
DISABILITY CASES - NEW - ARTICLE XVIII - 1
Detective II Lemuel J. Chancey
Deferred.
President Burdorf directed that this case be deferred due to time
constraints. Mr. Chancey was present with his attorney, Mike Lewis.
At this point in the proceedings, President Burdorf called for adjournment.
meeting adjourned at 5:30 p.m.
The