BOARD OF RETIREMENT
FRESNO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION
March 16, 2011
Trustees Present:
Michael Cardenas
Vicki Crow
John Souza
Nick Cornacchia
Steve Jolly
Franz Criego
Phil Larson
Trustees Absent:
Alan Cade, Jr.
Eulalio Gomez
Others Present:
Regina Wheeler, Alternate Trustee
Beth Bandy, Deputy Director of Personnel Services
Conor Hinds, Supervising Accountant
Susan Coberly, Senior Deputy County Counsel
Roberto L. Peña, Retirement Administrator
Becky Van Wyk, Assistant Retirement Administrator
Elizabeth Avalos, Administrative Secretary
Susan Coberly, Senior Deputy County Counsel, noted that Chair Cade and Vice Chair
Gomez were absent.
Alternate Trustee sat for Trustee Souza.
A motion was made by Trustee Larson, seconded by Trustee Cornacchia, to
appoint Trustee Jolly as Chair pro tem. VOTE: Unanimous (Absent – Cade, Crow,
Gomez)
1.
Call to Order
Chair Jolly called the meeting to order at 8:37 AM.
2.
Pledge of Allegiance
Recited.
3.
Public Presentations
None.
Consent Agenda/Opportunity for Public Comment
Chair Jolly pulled Consent Item 9 and Trustee Criego pulled Consent Item 10 for
discussion.
03/16/11 Regular Meeting
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A motion was made by Trustee Larson, seconded by Trustee Criego, to Approve
Consent Items 4-8. VOTE: Unanimous (Absent – Cade, Crow, Gomez)
*4.
Approve the March 2, 2011 Retirement Board Regular Meeting Minutes
RECEIVED AND FILED; APPROVED
*5.
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 February
2011
RECEIVED AND FILED
*6.
Public Records Requests and/or Retirement Related Correspondence from Cherith
Merson, FCERA Member; Andrew Campbell, BlueBay Asset Management; Victoria
Grissom, Aviva Investors; K. Reynold, Mendocino County; Susan O’Neill, FCERA
Member; Skip Whitley, FCERA Member; and Franz Criego, Board Trustee
RECEIVED AND FILED
*7.
Update of Board of Retirement directives to FCERA Administration
RECEIVED AND FILED
*8.
Report by Roberto L. Peña on attendance at the CALAPRS 2011 General Assembly
held on March 6-8, 2011
RECEIVED AND FILED
Trustee Souza joined the Board at 8:39 AM.
*9.
Educational Reading Materials
Chair Jolly commented on the February 28, 2011 article regarding the Securities and
Exchange Commission’s continuing investigation of State Street Corporation’s stock
lending program and inquired whether Administration is monitoring FCERA’s securities
lending program with State Street. Roberto L. Peña, Retirement Administration, stated
that Administration works with Wurts & Associates to monitor State Street regularly and
will keep the Board apprised of any situations affecting FCERA.
A motion was made by Chair Jolly, seconded by Trustee Larson, to Accept
Consent Item 9 as presented. VOTE: Unanimous (Absent – Cade, Crow, Gomez)
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February 21, 2011 Pension & Investments article – No so foreign anymore
February 21, 2011 Pension & Investments article – Flaw in time-weighting return
February 27, 2011 Asset International article – MassPRIM: Removing FoFs Moves Us
Closer to Peers
03/16/11 Regular Meeting
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February 28, 2011 Asset International article – Buried in Unforeseen Costs, BofA
Settles Countrywide Suit
February 28, 2011 News Dash article – State Street Corp. has reported the Securities
and Exchange Commission is continuing its investigation of the Boston-based
company’s stock lending program
March 1, 2011 Forbes article – Why defined-Benefit Plans Are Safer Investments for
State Governments and workers
March 3, 2011 Asset International article – NY Police Pension Finally Ventures Into
HFs
March 6, 2011 McClatchy Washington Bureau article – Why employee pensions
aren’t bankrupting states
March 7, 2011 Fresno Bee article – Pension reform is a key issue
March 7, 2011 Fresno Bee article – Pension 101: public vs. private
March 7, 2011 Fresno Bee article – Hearing raises interesting pension issues
March 7, 2011 Plan Sponsor article – Wilshire Consulting’s 2011 Report on State
Retirement Systems shows a slight uptick in funded status of state pension systems
March 7, 2011 Asset International article – Severity of Nation’s Public Pension Crisis
in Question
March 7, 2011 Pensions & Investments article – Many states look to ease pension
funding with switch to DC plan
March 7, 2011 Pension Y Investments article – DB plans in cross hairs in state budget
battles
March 8, 2011 Wall Street Journal article – Gates Says Benefit Costs Hit Schools
March 9, 2011 Top 1000 Funds article – Inside job: institutions shape the new hedge
fund model
February 2011 Government Finance Review article – Setting the Record Straight
About Public Pensions
February 2011 Government Finance Review article – Addressing Media
Misconceptions about Public-Sector Pension and Bankruptcy
February 2011 Government Finance Review article – Adjusting Public Pension
Benefits in Colorado A Fiduciary Process
February 2011 The Journal Newsletter
SACRS Public Pension Investment Management Program July 11-13, 2011 Berkeley,
California
RECEIVE AND FILE
*10.
Request from Wurts & Associates to amend the professional services billing cycle
from a quarterly basis to a monthly basis
Trustee Criego inquired to the cost, if any, in billing on a monthly cycle as apposed to the
quarterly basis. Roberto L. Peña, Retirement Administrator, noted that the costs will
increase approximately $65 annually.
A motion was made by Trustee Cardenas, seconded by Trustee Larson, to Approve
Consent Item 10 as presented. VOTE: Unanimous (Absent – Cade, Crow, Gomez)
RECEIVED AND FILED; APPROVED
03/16/11 Regular Meeting
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Trustee Crow joined the Board at this time.
11.
Presentation on County Hiring Process presented by Beth Bandy, Deputy Director
of Personnel Services
The Board heard and discussed a presentation by Beth Bandy, Deputy Director of
Personnel Services, regarding the Fresno County hiring processes that addressed the
limitations on questions that can be asked regarding medical condition and physical
limitation.
RECEIVED AND FILED
12.
Presentation on FCERA Cash Flow process, historical and prospective, presented
by Conor Hinds, Supervising Accountant
The Board heard and discussed a presentation by Conor Hinds, Supervising Accountant,
regarding FCERA’s Cash Flow process.
Mr. Hinds noted that Administration will begin providing/agendizing detailed information
outlining FCERA’s cash flow position on a monthly basis effective April 2011.
RECEIVED AND FILED
13.
Discussion and appropriate action on SACRS Board of Directors Election
Recommended Ballot
A motion was made by Trustee Souza, seconded by Trustee Cornacchia, to
Approve the SACRS Board of Directors Election recommended ballot as
presented. VOTE: Unanimous (Absent – Cade, Gomez, Larson)
RECEIVED AND FILED; APPROVED
Trustee Larson was absent from the dais during the vote on Item 13 and returned prior to
the discussion of Item 14.
14.
Discussion and appropriate action on Voting Proxy for SACRS Spring 2011
Conference
A motion was made by Trustee Jolly, seconded by Trustee Cardenas, to select
Trustee Souza as the SACRS Voting Delegate and Trustee Criego as the Alternate
Voting Delegate. VOTE: Unanimous (Absent – Cade, Gomez)
RECEIVED AND FILED; APPROVED
Roberto L. Peña, Retirement Administrator, pulled Closed Session Items 15.A.1., 15.A.3,
and 15.A.4. as there was nothing to discuss.
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15.
Closed Session:
A.
B.
Conference with Legal Counsel – Actual Litigation - pursuant to G.C.
§54956.9(a)
1.
Geraldine Chisom, et al. v. Board of Retirement, etc., et al., Fresno County
Superior Court Case No. 10 CECG 02372
2.
Lynn Adams v. Board of Retirement, etc., et al., Fresno County Superior
Court Case No. 09 CECG 02928
3.
Fresno County Employees’ Retirement Association v. Countrywide
Financial Corporation, et al., United States District Court Central District of
California Case No. CV11-0811-PA-SHX
4.
Stephanie Mallen, Individually, and et al. v. Alphatec Holdings Inc., et al.,
United States District Court Southern District of California Case No. 3:10CV-1673-BEN-JMA
Disability Retirement Applications – Personnel Exception (G.C. §54957):
1.
2.
16.
Rosemary Rojas
Cathie Newell
Report from Closed Session
15.A.1. Pulled.
15.A. 2. Lynn Adams – Decision – Grant Service Connected Disability Benefits. M –
Criego. S – Souza. VOTE: Unanimous. (Absent – Cade, Gomez)
15.A.3. Pulled.
15.A.4. Pulled.
15.B.1. Rosemary Rojas – Decision – Grant Service Connected Disability benefits based
on the Findings of Fact and Decision. M – Criego. S – Souza. VOTE: Yes –
Criego, Crow, Jolly, Larson, Souza. No – Cornacchia. Abstain: Cardenas.
(Absent – Cade, Gomez)
15.B.2. Cathie Newell – Decision - Grant Non-Service Connected Disability benefits
based on the Findings of Fact and Decision with the disability benefits
commencing December 17, 2008, the date the application was filed. M – Souza.
S – Jolly. VOTE: Unanimous (Absent – Cade, Gomez)
17.
Report from FCERA Administration
Roberto L. Peña, Retirement Administrator, reported on the following:
1.
2.
3.
Conflict of Interest forms (Form 700) are due March 30, 2011.
Reminder to use designated parking stalls.
Non-Service Connected Disability error related to Active Deceased was
identified and is being corrected.
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18.
Report from County Counsel
Susan Coberly, Senior Deputy County Counsel, had nothing to report.
19.
Board Member Announcements or Reports
Trustee Criego praised Supervisor Larson for his comments at the Board of Supervisor’s
March 15th meeting regarding the Retirement Task Force presentation. Mr. Peña noted
that Judy Case may be presenting the Retirement Task Force presentation to the Board
of Retirement on April 20, 2011.
Trustee Jolly stated, for the record, that his participation on the Retirement Task Force is
as a private citizen and not as a Trustee of the Board of Retirement.
Trustee Criego commented on a recent Fresno Bee opinion letter by former Trustee
James Hackett.
Trustee Cardenas commented on his recent attendance at the CALAPRS General
Assembly.
There being no further business the meeting adjourned at 10:26 AM.
Roberto L. Peña
Secretary to the Board
03/16/11 Regular Meeting