agenda - Los Angeles Fire and Police Pensions

Transcription

AGENDA
BOARD OF FIRE AND POLICE PENSION
COMMISSIONERS
JUNE 5, 2014
8:45 AM or immediately following the Audit Committee meeting
Los Angeles Times Building
202 W. First Street, Suite 500
Los Angeles, CA 90012
Commissioner Diannitto will participate telephonically from
4612 El Reposo Drive, Los Angeles, CA 90065
An opportunity for the public to address the Board or Committee about any item on today’s agenda for which there has been no previous
opportunity for public comment will be provided before or during consideration of the item. Members of the public who wish to speak on any
item on today’s agenda are requested to complete a speaker card for each item they wish to address, and present the completed card(s) to
the commission executive assistant. Speaker cards are available at the commission executive assistant’s desk.
In compliance with Government Code Section 54957.5, non-exempt writings that are distributed to a majority or all of the Board or
applicable Committee of the Board in advance of their meetings may be viewed at the office of the Los Angeles Fire and Police Pension
System (LAFPP), located at 360 East 2nd Street, 4th Floor, Los Angeles, California 90012, or by clicking on LAFPP’s website at
www.lafpp.com, or at the scheduled meeting. Non-exempt writings that are distributed to the Board or Committee at a scheduled meeting
may be viewed at that meeting. In addition, if you would like a copy of any record related to an item on the agenda, please contact the
commission executive assistant, at (213) 978-4555 or by e-mail at [email protected].
Sign language interpreters, communication access real-time transcription, assistive listening devices, or other auxiliary aids and/or services
may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting you wish
to attend. Due to difficulties in securing sign language interpreters, five or more business days notice is strongly recommended. For
additional information, please contact the Department of Fire and Police Pensions, (213) 978-4545 voice or (213) 978-4455 TDD.
A.
COMMITTEE REPORTS
1. RECOMMENDATION FROM THE AD HOC EMERGING MANAGERS COMMITTEE
FOR A SEARCH FOR THE DIRECT HIRE OF EMERGING INVESTMENT
MANAGERS AND POSSIBLE BOARD ACTION
B.
ITEMS FOR BOARD ACTION
1. APPROVAL OF TRAVEL AUTHORITY (VEGA) – HISPANIC HERITAGE
FOUNDATION, LEADERS ON FAST TRACK INVESTORS FORUM
2. REVISED APPROVAL OF TRAVEL AUTHORITY (PLEITEZ) – PENSIONS &
INVESTMENTS, INVESTMENT INNOVATION & THE GLOBAL FUTURE OF
RETIREMENT CONFERENCE AND POSSIBLE BOARD ACTION
3. PRESENTATIONS BY UNCONSTRAINED FIXED INCOME MANAGERS AND
POSSIBLE BOARD ACTION (30 minutes presentation and 10 minutes Q&A; times
are approximate)
Brandywine Global Investment Management
Goldman Sachs Asset Management
Payden & Rygel
PIMCO
Reams Asset Management
DISCUSSION/SELECTIONS
C.
REPORTS TO THE BOARD
1. CONTRACTOR DISCLOSURE POLICY - QUARTERLY REPORT
2. Has any Board Member made any expenditure to influence State legislative or
administrative action?
3. Miscellaneous correspondence from money managers, consultants, etc. – Received
and Filed.
4. General Manager’s Report
a. Benefits Actions approved by General Manager on May 15, 2014
b. Other business relating to Department operations
5. City Attorney’s Report
D.
COMMITTEE CALENDAR
1. Audit Committee – Last met: 02/20/14; next meeting: 06/05/14
2. Benefits Committee – Last met: 12/05/13; next meeting: Tentative on 06/19/14
3. Governance Committee – Last met: 03/20/14; next meeting: 09/18/14
4. Ad Hoc Emerging Investment Managers – Last met: 05/15/14; next meeting: TBD
5. Ad Hoc Managers Fees Committee – Dissolved on 05/15/14.
E.
CONSENT ITEMS
1. Approval of Minutes
a. Minutes of the Regular Board meeting of November 7, 2013 and February 6, 2014
June 5, 2014
2
b. Minutes of the Special Board Meeting of November 21, 2013, December 5, 2013,
February 6, 2014, February 20, 2014, March 6, 2014, and March 6, 2014 (closed
session)
2. APPROVAL OF TRAVEL AUTHORITY (SALIMPOUR) – CALAPRS, PRINCIPLES OF
PENSION MANAGEMENT FOR TRUSTEES
F.
CONSIDERATION OF FUTURE AGENDA ITEMS
G.
GENERAL PUBLIC COMMENT ON MATTERS WITHIN THE BOARD’S JURISDICTION
H.
DISABILITY CASES
Alternative 2
Domestic Partner Estella Andrade. Ms. Andrade will be represented by Thomas J.
Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee.
Police Officer III Matthew J. Bakotich. Officer Bakotich will be represented by Thomas J.
Wicke, Esq. of Lewis, Marenstein, Wicke, Sherwin and Lee.
I.
CLOSED SESSION ITEMS FOR POSSIBLE BOARD ACTION
1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8
TO CONFER WITH REAL PROPERTY NEGOTIATOR; Properties: 315 S. Hewitt
Street and 713 E. 3rd Street; Negotiators: David Weiner, Martin Cawley, Tom
Lopez, Erika Tiedge; Negotiating parties: Sentinel Real Estate Corporation and
LAFPP; Under negotiation: Instruction to negotiator will concern price
June 5, 2014
3
DEPARTMENT OF FIRE AND POLICE PENSIONS
360 East Second Street, Suite 400
(213) 978-4545
REPORT TO THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
JUNE 5, 2014
ITEM: B.1
FROM:
Raymond P. Ciranna, General Manager
SUBJECT:
APPROVAL OF TRAVEL AUTHORITY (VEGA) – HISPANIC HERITAGE
FOUNDATION, LEADERS ON FAST TRACK INVESTORS FORUM
RECOMMENDATION
That the Board consider Commissioner Belinda Vega’s request to attend the Hispanic Heritage
Foundation for Leaders on Fast Track Investors Forum on June 26 – 28, 2014 in Washington,
D.C. Commissioner Vega’s attendance to this conference requires a separate Board action as it
is not on the recommended list of conferences on Schedule 11 of our Budget FY 2013-14. Also,
there is no registration fee as Commissioner Vega will be participating as a panelist for one of the
sessions.
DISCUSSION
Commissioner Vega expressed interest in participating in the following conference:
Conference:
Sponsor:
Dates:
Location:
Mode of transportation:
Leaders on Fast Track Investors Forum
Hispanic Heritage Foundation
June 26 – 28, 2014 (June 26th & 28th are travel days)
Washington, D.C.
Commercial airline
BUDGET
Sufficient funds are available in the Fiscal Year 2013-14 Travel Account.
Estimated cost for Commissioner Vega:
Registration
Airfare
Hotel
Per Diem
Incidentals (mileage, parking, baggage fee & ground transportation)
TOTAL
$ 0.00
557.00
456.00
160.00
138.00
$1,311.00
POLICY
If approved by the Board, the proposed expenditures would be an exception to the Board’s Travel
and Education Policy.
All information regarding the conference is contained in the attached agenda.
This report was prepared by:
Evange Masud, Executive Administrative Assistant
Administrative Operations Division
RPC:WSR:EM
Attachment-Conference agenda
Board Report
Page 2
June 5, 2014
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12:30 PM
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Break, Lunch, & Remarks by Gustavo Arnavat
Discussion 4: Private Equity !Including Venture Capital)
2:30 PM - 3:15 ?M
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3:30 PM
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4:15 PM
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(213) 978-4545
JUNE 5, 2014
ITEM: B.2
FROM:
SUBJECT:
REVISED APPROVAL OF TRAVEL AUTHORITY (PLEITEZ) - PENSIONS &
INVESTMENTS, INVESTMENT INNOVATION & THE GLOBAL FUTURE OF
RETIREMENT CONFERENCE
RECOMMENDATION
That the Board approve the revised cost for Commissioner Emanuel Pleitez’s request to attend
the Investment Innovation & the Global Future of Retirement Conference on June 22 – 24, 2014 at
New York, NY.
DISCUSSION
Commissioner Pleitez was approved to participate in the following conference:
Conference:
Sponsor:
Dates:
Location:
Investment Innovation & the Global Future of Retirement
Pension & Investments (P&I)
June 22-24, 2014 (June 22nd is a travel day)
New York, NY
Commercial airline
On April 3, 2014 the Board approved Commissioner Pleitez’s request to travel to the P&I
conference in New York at an estimated cost of $1,926.00. Staff was in the process of preparing
the required documents for submission to the City Controller. Since then, the cost of the
conference cost, hotel, and airfare have increased to $2,289.34, for an additional cost from the
initial board report of $363.34.
The conference cost for Commissioner Pleitez was initially quoted at $500. Subsequently, P&I
submitted a $733.34 invoice for food ($333.34), audio visual ($300.00), and materials ($100.00).
The cost of the food is above the per diem rate at $71.00 daily. For lodging, staff previously
reserved the Inter-Continental Hotel estimated at $632.00 due to the high cost of the conference
hotel (The Waldorf Astoria), which was approximately $500.00 per night. Staff was recently
informed that the Inter-Continental Hotel will be closed for construction during the conference
dates. Staff have now reserved the W New York hotel estimated at $708.00, which is located
nearby the conference location.
BUDGET
Estimated cost for Commissioner Pleitez:
Participant Cost (including food, audio visual and materials)
Airfare
Hotel
Per Diem
Incidentals (mileage, parking, baggage fee & ground transportation)
TOTAL
$ 733.34
478.00
708.00
160.00
210.00
$2,289.34
POLICY
If approved by the Board, the proposed expenditures would be an exception to the Board’s Travel
and Education Policy because the conference is not listed on the FY Budget 2013-14, Schedule
11 and because the food cost exceeds Policy per diem rates.
All information regarding the conference is contained in the attached agenda (Attachment).
RPC:SC:EM
Attachment - Conference Agenda
Board Report
Page 2
June 5, 2014
Attachment, Page 1
agenda
June 22 -24, 2014 | New York City | The Waldorf Astoria
As of March 20, 2014
Sunday, June 22, 2014
2:00 pm – 7:00 pm
5:00 pm – 7:00 pm
Registration
Welcome Reception
Monday, June 23, 2014
7:30 am - 8:30 am Registration and Networking Breakfast
8:30 am – 8:40 am
8:40 am – 9:45 am Welcome & Opening Remarks
KEYNOTE: How Global Demographics and Monetary Policies are Affecting the World’s Retirement Systems
Quantitative easing has harmed some of the world’s pension systems by keeping bond yields – and pension returns – low in recent
years. Meanwhile, people are living longer, which puts added pressure on pension systems initially designed when life spans, and
retirements, were much shorter. When those two scenarios combine, it creates a perfect storm for pension plans.
This opening session kicks off with one of the world’s leading demographers, who will show how the world’s population is growing
and shifting. From there, we’ll move to an expert on monetary policy, who will show us where things stand today. Please join this
discussion about how these seemingly unrelated issues combine to form significant challenges for retirement plans around the
globe.
9:45 am - 11:00 am
Speakers:
L. Stephen Coles, M.D., Ph.D. (United States)
Executive Director
Los Angeles Gerontology Research Group
Robert C. Merton, Nobel Prize Winner (United States)
Distinguished Professor of Finance
MIT Sloan School of Management
ROUND-TABLE DISCUSSION: The Endgame - Retiring With Dignity
Compare strategies of several systems from around the world that successfully provide replacement income when people no
longer work. Focus on what each does differently and what we can all learn from the variety of approaches.
Moderator: Pablo Antolín-Nicolás (France)
Principal Economist, Head Private Pension Unit, Financial Affairs Division
Organization for Economic Co-Operation & Development (OECD)
Speakers: Ole Settergren (Sweden)
Member of the Board
Second National Swedish Pension Fund
Jim Leech (Canada)
Retiring Chief Executive Officer
Ontario Teachers’ Pension Plan
Additional Speakers to be Announced
Attachment, Page 2
11:00 am – 11:25 am
agenda
Morning Networking Break
CONCURRENT DIALOGUES:
11:25 am – 12:15 pm
Dialogue 1: What Happens When You Retire?
Given the option, DB retirees tend to choose a lump sum over the standard annuity. In DC plans, very few buy annuities. If annuities have so many benefits, why aren’t more people taking advantage of them? This discussion will cover the following topics:
•
•
•
•
What are the goals retirees are aiming to achieve?
Why don’t annuities fit their needs better?
What alternative designs might work better?
Are the needs of retirees consistent with the sponsor’s perspective?
Speakers: Don Ezra (Canada)
Co-Chair, Global Consulting
Russell Investments Worldwide
11:25 am – 12:15 pm
Dallas L. Salisbury (United States)
President and CEO
Employee Benefit Research Institute (EBRI)
DIALOGUE 2: Mitigating Risk in Your Portfolio
The financial crisis of 2008 exposed limitations on risk management tools and the way they predict risk. Chief investment officers
and investment strategists discuss ways to mitigate risk in portfolios including agent-behavior analysis, network analysis, extreme
value theory, expected shortfall risk, multi-horizon anaylsis, leverage risk, counterparty risk, the risks associated with funded status
attribution and monitoring, and how best to predict from where the next risks are coming. Also will look at risk budgeting and how
investing based on risk, rather than capital allocation, may be the future of portfolios.
Moderator: Christine Williamson
Senior Reporter
Pensions & Investments
12:15 pm – 1:45 pm
David Iverson
Head of Asset Allocation
New Zealand Superannuation Fund
LUNCHEON KEYNOTE: P&I Chat - 20th Century Investment Leaders
Join us for this enlightening discussion with industry icons discussing their approach to investing and retirement.
Speaker: John Clifton “Jack” Bogle (United States)
Founder and Retired CEO
Vanguard Group, Inc.
Attachment, Page 3
agenda
ROUND-TABLE DISCUSSION: Global Trends of DB and DC Plans
Statistics show more plan sponsors leaning toward defined contribution plans in recent years. Will this trend continue? Or will the
retirement plans evolve into more of a hybrid solution that combines parts of both defined contribution and defined benefit plans?
Some of the world’s top industry experts weigh in on what’s working and what the future holds for plan design.
Moderator: Amy Resnick
Executive Editor
1:45 pm – 2:40 pm
Speakers: Paul Todd (United Kingdom)
Director Investment
National Employment Savings Trust (NEST)
2:45 pm – 3:35 pm
DIALOGUE 1: Investing a Plan’s Assets to Meet its Financial Obligations
What is the future of company-provided retirement benefits from an investment perspective? This lively discussion includes alternate plan sponsor views of the corporate plan of tomorrow.
Moderator: Nancy K. Webman
Editor
Speakers: Colin J. Kerwin (United States)
Global Pension Fund Manager
ExxonMobil
2:45 pm – 3:35 pm
DIALOGUE 2: Global Investment Trends in Asset Allocation
Discover the cutting-edge investment trends aimed at improving retirement outcomes, and the topics CIOs and strategists are
considering as they work to grow portfolios.
•
•
•
•
•
•
Absolute-return strategies
Alternatives to traditional fixed income
Capacity constraints on strategies from floating-rate debt to emerging markets
The importance of investment horizons (are there truly long-term investors?) How significant is the illiquidity premium?
The risks of investing in higher-fee strategies –political/headline/career
New behavioral finance approaches in portfolio management. Is there a behavioral capital asset pricing model?
Moderator: Roger Urwin (United Kingdom)
Global Head of Investment Content
Towers Watson
Speakers: Chris Ailman (United States)
Chief Investment Officer
California State Teachers Retirement System, (CalSTRS)
Eduard van Gelderen, CFA FRM (Netherlands)
Statutory Board Member & Chief Investment Officer
APG Asset Management
Greg Williamson (United States)
Director, Trust Investments, Chief Investment Officer and Vice President
BP America
Attachment, Page 4
agenda
3:35 pm – 4:00 pm
Afternoon Networking Break
4:00 pm – 5:00 pm
CLOSING KEYNOTE DAY ONE: Influencing Positive Change
Asset management firms have profited off the industry of retirement, and some people in the industry are working to give back as
well. This session will examine work by individuals and companies aimed at improving retirement outcomes.
Speaker to be Announced
5:00 pm – 6:00 pm Networking Cocktail Reception
Tuesday, June 24, 2014
7:30 am
Registration Opens
8:30 am – 9:30 am
Morning Investment Innovation Workshops with Breakfast
P&I will host three simultaneous investment strategy workshops over breakfast exclusively for plan sponsor attendees
Closed Door Lead Sponsor Speaker Sessions - Topics to be Announced
Vanguard, Prudential & TBD
9:30 am – 10:30 am Plan Design Innovations Around the Globe
Discover some of the world’s leading innovative investment strategies for improving retirement outcomes
Moderator: To be Announced
Speakers: Tomas Franzén (Sweden)
Chief Investment Strategist
Second Swedish National Pension Fund (AP2)
10:30 am – 10:55 am David Schneider (Australia)
Head of Research and Quant Methods
UniSuper Management Pty Ltd
Morning Networking Break
10:55 am – 11:45 am
Dialogue 1: Participants on the Right Path
Discover plan design trends used in the U.S. and internationally that are making a difference in improving retirement outcomes.
Speakers:
10:55 am – 11:45 am
Lori Lucas
Executive Vice President, DC Practice Leader
Callan Associates
Dialogue 2: Derisking Trends Across the Globe
More companies are considering ways to reduce their pension liabilities. Some are looking to purchase annuities for participants,
some are considering lump-sum payments. How are global corporations meeting their pension liabilities and what are the pros
and cons of these kinds of risk transfers?
Speakers to be Announced
Attachment, Page 5
agenda
11:50 am – 12:40 pm DIALOGUE 1: Global Plan Governance
Plan governance is front and center in the international debate about the efficacy of defined benefit and defined contribution
plans. The modern world requires swift, nimble decision-making by chief investment officers and their staffs to capture fleeting
global investment opportunities. At the same time, superior fiduciary oversight of assets and operations by defined benefit and
defined contribution plan trustees and investment committees is more important than ever.
The panel of plan executives and industry experts will discuss best governance practices from around the world to keep plans
optimally invested, managed and funded, and in regulatory compliance.
Speakers: Ian D. Lanoff (United States)
Principal
The Groom Law Group
11:50 am – 12:40 pm Additional Speakers to be Announced
DIALOGUE 2: Investment Behavior Effects on Plan Participants
A leading behavioralist discusses ways to balance risk and reward by determining the maximum percentage of reduction in their
standard of living people are willing to accept. One study found that Americans are willing to accept a maximum reduction of
approximately 12.5%. Find out how that compares with the rest of the world as the research compares men and women’s risk
tolerances and what role age plays in one’s risk adversity.
12:40 pm – 2:00 pm
Luncheon Keynote: Planting Financial Literacy Seeds Across the Globe
One surefire way to improve retirement outcomes is for individuals to save more and to start saving at an earlier age. Knowing the
ins and outs of investing can also reap the benefits of finding the best way to diversify one’s portfolio. But how can we collectively
bring about such positive change?
• Should a child’s education include a financial curriculum?
• How much financial literacy is needed to make a difference
• What tools are needed?
• Where can a young person go to get educated?
• What are the qualities of a good financial teacher?
• What does everyone need to learn about improving retirement outcomes?
Speaker:
Arne Duncan
Secretary of Education
United States
Attachment, Page 6
agenda
2:00 pm – 3:00 pm
Future of Retirement Solutions
Industry leaders from around the globe discuss options governments and companies are considering to reduce the cost of retirement to them. The options under review include:
•
•
•
•
Raising the age of retirement
Tax harmonization
Financial education
Customized communications and technology
Speakers: Karen Friedman (United States)
Executive Vice President & Policy Director
Pension Rights Center (PRC)
Gordon Clark (United Kingdom)
Professor and Director of the Smith School of Enterprise
University of Oxford
Ash Williams (United States)
Executive Director and Chief Investment Officer
Florida State Board of Administration (SBA)
Andreas Hilka (Germany)
Managing Director - Head of Pensions
Allianz Global Investors Europe
3:00 pm – 4:00 pm CLOSING KEYNOTE: Assessing the Current Retirement Funding Paradigm
Regardless of the type of plan, three key elements apply:
1) Available benefits are based on eligibility and participation funding by the employer or the individual and investment returns;
2) The level of benefit needed for retirement by an individual is a function of retirement age, longevity and annual consumption
requirements; and
3) Inflation and other unknowns, such as an individual’s health-related expenses, contribute to a need to have greater retirement
assets to protect against financial uncertainties.
Hear insights from the leader of the world’s largest money management firm on how all nations need to begin working together
immediately to a find a more holistic approach so plan sponsors around the globe can help provide lifetime income options and
expand portability.
Conference Concludes
4:00 PM
(213) 978-4545
JUNE 5, 2014
ITEM: C.1
FROM:
SUBJECT:
CONTRACTOR DISCLOSURE POLICY - QUARTERLY REPORT
THIS REPORT IS PROVIDED TO THE BOARD FOR INFORMATIONAL PURPOSES.
The Board adopted the Contractor Disclosure Policy to provide transparency in LAFPP’s
contracting process and to help ensure that investment and procurement decisions are made
solely on the merits of the goods or services proposed to be provided by Contractors to LAFPP.
Section 1.18.G.2.f of the Policy reads as follows:
“LAFPP internal audit staff will compile a quarterly Board report containing the names
and amount of compensation agreed to be provided to each Intermediary by each
Contractor; the campaign contributions and gifts of each Contractor as reported in the
Contractor Disclosures; the List of Contacts; and the List of Exclusions.”
In accordance with the above section, Staff is providing its quarterly report to the Board. Seventyfour disclosure reports were received by the Internal Audit Section (IAS). The following table is a
breakdown of the reports received by IAS and the reports outstanding at the time this report was
prepared.
Description
Quarterly Disclosures (61 Required)
Completed Quarterly Reports
Outstanding Quarterly Reports
Additional Disclosures (13 Required)
Private Equity Funds (New Fund or Increased Commitment)
RFP Respondents
Total
No.
Outstanding
No.
Received
61
0
0
10
3
74
Attachment 1 lists outstanding disclosure reports, disclosed gifts, and intermediary information.
Attachment 2 is a summary of the gift information disclosed by the private equity consultant,
Portfolio Advisors.
Prior Quarterly Report Update
There were no outstanding disclosure reports in the prior quarter.
BUDGET
No impact.
Caroline Dinu
Senior Management Analyst II
Internal Audit Section
RPC:EJK:CD
Attachments (2)
1. Contractor Disclosure Policy Outstanding Disclosures
2. Private Equity Disclosure Information
Board Report
Page 2
June 5, 2014
Attachment 1
DEPARTMENT OF FIRE AND POLICE PENSIONS CONTRACTS
As of May 28, 2014
CONTRACTOR DISCLOSURE POLICY
OUTSTANDING DISCLOSURES
Contract
Number
Vendor / Contract Name
Contract Term
Start Date
Exp. Date
Responsible
Section
Reason for non-disclosure
None
NEW EXCLUSIONS
Contract
Number
Exclusion Date
Contract Term
Start Date
Exp. Date
Contract Term
Start Date
Exp. Date
Exclusion Information
None
CAMPAIGN CONTRIBUTIONS
Contract
Number
Campaign Contribution Information
None
OTHER CONTRIBUTIONS
Contract
Number
Contribution Information
None
DISCLOSED CONTACTS
Contract
Number
Contact Date
Contact Information
None
DISCLOSED GIFTS
Contract
Number
Goldman Sachs
Goldman Sachs
539PEN
Los Angeles Capital Management
570PEN and
584PEN
Portfolio Advisors
Gift Date
Gift Information
11/6/2013
Goldman Sachs reports lunch, valued at approximately $39.48, was provided to former LAFPP Commissioner Wayne Moore, by
Stephanie Ivy Sanford, Managing Director, Investment Management Division.
3/21/2014
Goldman Sachs reports an approximate value of $12.50 each for its share of lunch provided to three investments staff members (E.
Tiedge, S. Liem, and M. Shaler) at the Women in Investments event. See IAS note below for another firm reporting for the same
event.
3/21/2014
Los Angeles Capital Management (LACM) reports meals, valued at approximately $75 each, were provided to three Investments staff
members (E. Tiedge, S. Liem, and M. Shaler) at the Women in Investments event. IAS reports that while the cost was noted as
shared by six firms, pursuant to CA Code of Regulations, the full cost was correctly attributed to LACM.
See attached summary.
INTERMEDIARY INFORMATION
Intermediary
Compensation
Disclosure Date
3/18/2014
5/14/2014
Blue Sea Capital Fund
Lazard Freres & Co. LLC.
Percentage of aggregate principal
amount of the securities sold to the
investors in the Fund.
Polaris VII
Denning and Company,
LLC.
Based on sliding scale from 0-2.5%
of total capital commitments.
Notes
Closed 4/7/2014.
Page 1
Attachment 2
PRIVATE EQUITY DISCLOSURE INFORMATION
In response to the Contractor Disclosure Policy as modified in April 2012, LAFPP’s
private equity consultant, Portfolio Advisors, submitted its contractor disclosure for the
quarter ending March 31, 2014.
Portfolio Advisors employees attend annual and advisory board meetings of the
underlying portfolio funds as part of its due diligence and in order to fulfill its
responsibilities to its clients. IAS summarized disclosure information in consideration of
due diligence protections in certain limited partnership agreements.
The table below is a summary of gifts of meals, lodging, and transportation, as defined
in LAFPP’s Contractor Disclosure Policy and as reported by Portfolio Advisors for the
first quarter of 2014.
Number of
Number of PA Staff
Total Number Number of Attendees Number of Attendees
Annual and/ Attending as
of PA Staff in
w/ Travel and Lodging w/ Lodging Only
or Advisory
Advisory Board
Attendance
Provided by GP
Provided by GP
Board
Members
Meetings
18
12
23*
2
1
Note: It is understood that meals are provided by the General Partner (GP) of the private equity fund.
*This number includes seven PA Staff attending via conference call.
In addition, Portfolio Advisors has in place a Gifts and Entertainment Policy. IAS has
reviewed the Portfolio Advisors’ Gifts and Entertainment Policy and notes that it is
robust, comprehensive, and demonstrates commitment to ensuring employees’ actions
are free from conflicts of interest, the appearance of conflicts of interest, and potential
violations of law. Key provisions of the policy include restrictions on gifts and
entertainment, quarterly reporting (in addition to those required by LAFPP), references
to Portfolio Advisors’ Code of Ethics, and consideration of applicable laws and ERISA.
Prior Quarter Information from Portfolio Advisors
There is no information outstanding from the prior quarter.
MINUTES
OF THE
BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
BOARD MEETING OF NOVEMBER 7, 2013
The Board of Fire and Police Pension Commissioners of the City of Los Angeles met at the LACERS Board Room,
located at the Los Angeles Times Building, 202 W. First Street, Suite 500, Los Angeles 90012 on Thursday,
November 7, 2013.
COMMISSIONERS PRESENT:
Ruben Navarro, President
Gregory Lippe, Vice President
Sam Diannitto (participated telephonically)
Dean Hansell
Wayne Moore
Emanuel Pleitez
Belinda Vega
Robert von Voigt
COMMISSIONER ABSENT:
George Aliano
DEPARTMENT OF FIRE AND
POLICE PENSIONS:
William Raggio, Executive Officer
Joseph Salazar, Assistant General Manager
Tom Lopez, Chief Investment Officer
Barbara Nobregas, Commission Executive Assistant
CITY ATTORNEY’S OFFICE:
Alan Manning, Assistant City Attorney
James Napier, Deputy City Attorney
COURT REPORTER:
Diane L. Panicca, U.S. Legal Support
President Navarro called the meeting to order at 8:36 a.m. All of the above-listed Commissioners were present at the
start of the meeting with the exception of Commissioner Pleitez, who arrived at 8:41 a.m.
A.
1. PROPOSED REAL ESTATE INVESTMENT RECOMMENDATIONS BY THE TOWNSEND
GROUP AND POSSIBLE BOARD ACTION
Minutes of the Board of Fire and Police Pension Commissioners
November 7, 2013
Page 2
Ms. Jennifer Young, Consultant, Townsend Group (Townsend) presented the recommendation to invest in
two core open-end commingled fund vehicles. This is in an effort to reduce risk in the real estate portfolio.
She discussed the strategy going forward. Ms. Young elaborated on how Townsend has been able to create
value in core investments for the System.
RESOLUTION 14048
Commissioner Lippe moved that the Board:
1. Approve The Townsend Group’s recommendation to commit $60 million to the Heitman American
Realty Trust; and,
2. Approve The Townsend Group’s recommendation to commit $60 million to the MetLife Core Property
Fund, which motion was seconded by Commissioner Vega and approved by the following vote: ayes,
Commissioners Diannitto, Hansell, Lippe, Moore, Pleitez, Vega, von Voigt, and President Navarro – 8;
nays, none.
2. REVISIONS TO BOARD OPERATING POLICIES AND PROCEDURES REGARDING THE
HEALTH AND DENTAL SUBSIDY PROGRAM AND POSSIBLE BOARD ACTION
Mr. Anthony Torres, Senior Management Analyst I, Medical and Dental Benefits presented board rules to
codify the current practices regarding the health benefits program. The goal is to place the board rules in one
location so that stakeholders may view the rules that LAFPP operates by. The rules cover three areas: the
Health Insurance Premium Reimbursement Program, our practices regarding Medicare, and Medicare
Reimbursement. Mr. Torres further discussed the rules in detail.
Commissioner Hansell stated his concerns regarding the verbiage of some of the rules and that he
communicated those concerns to staff. He asked if his amendments were distributed to the Board.
General Manager Ciranna stated that some of the amendments were made to the board rules. It is up to
Commissioner Hansell to bring those amendments before the Board for consideration.
President Navarro confirmed that there was no time limitation regarding this item. The issues may be
referred back to the Benefits Committee for review and to allow input from the Associations.
RESOLUTION 14049
Commissioner Lippe moved that the Board refer the revisions to the board rules regarding the health and
dental subsidy program back to the Benefits Committee, and allow the Associations to assess the
amendments, which motion was seconded by Commissioner Pleitez and approved by the following vote:
ayes, Commissioners Diannitto, Hansell, Lippe, Moore, Pleitez, Vega, von Voigt, and President Navarro – 8;
nays, none.
November 7, 2013
Page 3
Items A.4 – H.2 were taken out of order.
4. APPROVAL OF TRAVEL AUTHORITY (MOORE) – KORIED, INSTITUTIONAL INVESTORS’
ROUNDTABLE
President Navarro clarified that this conference is not on the preapproved list of conferences, and therefore it
was not placed in the Consent Items portion of the agenda.
Commissioner Hansell stated that the appointed commissioners do not know if they will be reappointed to
the Board. If Commissioner Moore is not reappointed to the Board, he should not attend the conference.
RESOLUTION 14050
Commissioner Lippe moved that the Board authorize Commissioner Moore to attend the Koried Institutional
Investors’ Roundtable on December 1-4, 2013 at San Francisco, CA (December 1st is a travel day), which
motion was seconded by Commissioner Vega and approved by the following vote: ayes, Commissioners
Diannitto, Hansell, Lippe, Moore, Pleitez, Vega, von Voigt, and President Navarro – 8; nays, none.
B. REPORTS TO THE BOARD
1. 2013-2014 LEGISLATIVE PROPOSALS FOR SACRAMENTO AND WASHINGTON
Mr. Gregory Mack, Senior Management Analyst II, Communications/Active Member Services and
Ms. Erika Robinson, Benefits Specialist, from Communications/Special Projects Section were before the
Board.
Ms. Robinson summarized the report that was submitted to the Mayor and City Council President in
response to their request for legislative proposals for the City’s Legislative Program for 2013-14. The first
proposal was submitted in support of the Social Security Fairness Act to enable members who are eligible
for Social Security to no longer have their Social Security benefits impacted because they are receiving a
government pension from LAFPP. The second proposal is a recommendation to reintroduce legislation that
would eliminate a tax penalty for Deferred Retirement Option Plan (DROP) participants who exit the
program between ages 50-55, should they roll that money over into deferred compensation and withdraw the
money prior to age 59-1/2.
General Manager Ciranna stated that the information is an update. The Mayor and Chief Legislative Analyst
have received the information. Staff will report to the Board on the City Council’s action. The board report
was received and filed.
2. REVIEW OF 2013 PRIVATE EQUITY AND COMMODITIES INVESTMENT ACTIVITY BY
PORTFOLIO ADVISORS, LLC
Messrs. Todd A. Hughes and Brian P. Murphy, both Managing Directors from Portfolio Advisors provided
November 7, 2013
Page 4
the Board an update of the private equity and commodities portfolio. The board report was received and
filed.
3. President Navarro asked if any Board Member made any expenditure to influence State legislative or
administrative action to which their reply was negative.
4. Miscellaneous correspondence from money managers, consultants, etc. – Received and Filed.
a. Benefits Actions approved by General Manager on October 17, 2013
Pursuant to Resolution 04008, adopted by the Board of Fire & Police Pension Commissioners on
August 7, 2003, the following benefit actions have been approved by the General Manager.
DISCONTINUED PENSIONS – TIER 1 – 5
Robert D. Long
Harold A. Latham
Pearl I. Foster
Mary M. Liles
Sarah C. Towles
Police Service
Police Disability
Police Widow
Police Widow
Police Widow
Retired:
Retired:
Retired:
Retired:
Retired:
07-09-66
11-01-63
11-11-88
11-03-87
12-25-66
Died:
Died:
Died:
Died:
Died:
07-13-13
08-28-13
09-18-13
08-18-13
07-12-13
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
01-07-73
09-16-84
05-06-76
01-01-70
02-28-88
11-22-98
09-19-75
04-30-77
07-12-86
07-15-13
04-28-96
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
07-04-13
07-24-13
09-10-13
07-14-13
09-11-13
09-15-13
08-30-13
09-16-13
09-04-13
08-22-13
09-18-13
Retired:
03-05-06
Died:
09-06-13
05-01-98
Died:
09-05-13
Thomas L. MacHale
Edwin W. Tapert
Westley L. Craven
Mosco K. Davis
Charles L. Frilot
Samir S. Ghattas
Donald G. Kringen
Alfred S. Peckham
Adeline Skemp
Virginia Davis
Fern I. Mc Granahan
Fire Service
Fire Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Fire Widow
Police Widow
Police Widow
Ramon F. Haro, Jr.
Fire Service
DISCONTINUED PENSIONS FORMER SPOUSE – TIER 2 – 1
Mary E. Bowman
Police Service
Retired:
November 7, 2013
Page 5
ELIGIBLE SURVIVING SPOUSE’S PENSION – TIER 2 – 3
Name
Janet M. MacHale
Margaret Frilot
Laura J. Kringen
Deceased Member
Thomas L. MacHale
Charles L. Frilot
Donald G. Kringen
Member’s Class
Fire Service
Police Service
Police Service
Effective Date
07-05-13
09-12-13
08-31-13
Name
Teresa M. Minter
Deceased Member
Ramon F. Haro, Jr.
Member’s Class
Fire Service
Effective Date
09-07-13
PARTIAL PAYMENT OF PENSION – TIER 5 – 5
In accordance with the City Attorney’s advice, a designated proportion of the community property
interest of the pension payable to Frederick G. Davis, Police Service Pensioner, is to be paid to his
former spouse, Christy A. Davis, effective October 1, 2013. Ms. Davis will receive cost of living
adjustments.
interest of the pension payable to Salvador B. Jaramillo, Police Service Pensioner, is to be paid to his
former spouse, Denise M. Jaramillo, effective October 1, 2013. Ms. Jaramillo will receive cost of
living adjustments.
interest of the pension payable to Hector Z. Vidal, Police Service Pensioner, is to be paid to his
former spouse, Laura L. Vidal, effective August 26, 2013. Ms. Vidal will receive cost of living
adjustments.
interest of the pension payable to David L. Enlow, Police Service Pensioner, is to be paid to his
former spouse, Susan M. Enlow, effective October 1, 2013. Ms. Enlow will receive cost of living
adjustments.
interest of the pension payable to Anthony R. Moreno, Police Service Pensioner, is to be withheld for
his former spouse, Rose M. Moreno, effective October 1, 2013. Ms. Moreno will receive cost of
living adjustments.
DISCONTINUE PARTIAL PAYMENT OF PENSION – TIER 2 – 1
In accordance with the City Attorney’s advice, the designated proportion of the community property
interest of the pension payable to Raymond G. Bowman, Police Service Pensioner, which was being
paid to his former spouse, Mary E. Bowman, has been discontinued due to the death of Ms. Bowman
on September 5, 2013. Ms. Bowman’s portion reverts to Mr. Bowman effective September 6, 2013.
CONSERVATORSHIP – TIER 2 – 1
November 7, 2013
Page 6
A certified copy of the Letters of Temporary Conservatorship, issued in the Los Angeles Superior
Court of California, Case Number BP 142 806, appointing James and Michael McDermott,
Conservators of the Estate of Virginia M. McDermott, surviving spouse of deceased Police Service
Pensioner, Luke M. McDermott, effective September 10, 2013, has been filed with this office.
Pension payments will be paid to James and Michael McDermott for the benefit of Virginia M.
McDermott, effective October 1, 2013.
DEFERRED SERVICE PENSION – TIER 3 – 1
Police
Daryl L. Reems
Police Officer II
Eff:
09-30-13
20
Years
299
Days
Eff:
09-30-13
26
Years
213
Days
Eff:
08-12-13
25
Years
6
Days
Eff:
08-01-13
25
Years
10
Days
Eff:
Eff:
Eff:
Eff:
Eff:
Eff:
08-05-13
09-01-13
09-01-13
08-01-13
08-01-13
09-01-13
26
25
25
29
29
25
Years
Years
Years
Years
Years
Years
0
59
233
346
360
282
Days
Days
Days
Days
Days
Days
10-26-08
11-01-08
Exit Close of:
Exit Close of:
10-25-13
10-31-13
11-01-08
Exit Close of:
10-31-13
DEFERRED SERVICE PENSION – TIER 5 – 1
Police
Jeronimo Rodriguez
Captain I
SERVICE PENSION/DROP – TIER 3 – 1
Police
Rodney K. Peacock
Sergeant I
Police
Michelle Diaz
Detective I
Police
George E. Granillo
William A. Murphy
John C. Porras
Angela M. Rivers
Robert E. Rivers
Edmund D. Russell
Detective I
Commander
Sergeant I
Detective III
Lieutenant I
Sergeant II
DISCONTINUE DROP – TIER 2 – 2
Police
Ruben J. Holguin
Thomas E. McMullen
Retired:
Retired:
Fire
Steven Domanski
Retired:
November 7, 2013
Page 7
Robert Z. Garcia
Butch Kennedy, Jr.
Benjamin J. Simpson
Retired:
Retired:
Retired:
11-01-08
11-01-08
10-27-08
Exit Close of:
Exit Close of:
Exit Close of:
10-31-13
10-31-13
10-26-13
Police
Andrew A. Cano
Luis Corona
Joseph De Lorenzo
Monte C. Houze
Richard W. Jackson
Roscoe D. Jolla
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
11-01-08
04-01-11
11-01-08
09-02-09
11-01-08
06-01-12
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
10-31-13
10-06-13
10-31-13
10-31-13
10-31-13
10-31-13
DISCONTINUE DROP – DECEASED – TIER 5 – 4
Fire
Jeffrey K. Johnson
Mario A. Martinez
Matthew G. McKnight
Retired:
Retired:
Retired:
05-29-11
07-12-11
08-01-12
Died:
Died:
Died:
07-29-13
07-25-13
08-12-13
Police
David C. Wright
Retired:
08-05-09
Died:
08-21-13
DESIGNATED PAYMENT OF DROP FUNDS – TIER 5 – 2
In accordance with the Los Angeles Administrative Code and at the request of Eric M. Martinez,
designated beneficiary of Mario A. Martinez, deceased Fire Service Pensioner, the DROP funds
payable to Mario A. Martinez are to be paid to Eric M. Martinez, effective October 1, 2013.
In accordance with the Los Angeles Administrative Code and at the request of Mary Wright,
surviving spouse of David C. Wright, deceased Police Service Pensioner, the DROP funds payable to
David C. Wright are to be paid to Mary Wright, effective October 1, 2013.
PARTIAL PAYMENT OF DROP FUNDS – TIER 5 – 2
interest of the DROP funds payable to Monte C. Houze, Police Service Pensioner, is to be withheld
for his former spouse, Lola A. Hampton, effective October 31, 2013.
interest of the DROP funds payable to Benjamin J. Simpson, Fire Service Pensioner, is to be paid to
his former spouse, Kristine R. Simpson, effective October 26, 2013.
MODIFIED PARTIAL PAYMENT OF DROP FUNDS – TIER 2 – 1
November 7, 2013
Page 8
interest of the DROP funds payable to Anthony D. Ellis, Police Service Pensioner, being withheld for
his former spouse, Coletta Preacely Garcia, since June 30, 2012, should be released effective
October 1, 2013.
ELIGIBLE SURVIVING SPOUSE’S APPLICATION – TIER 5 – 2
Name
Sylvia McKnight
(Matthew G. McKnight)
Member’s Class
Fire Captain I
Type % Rate
Service Pension
Continuance:
60%
Effective Date
08-13-13
Name
Mary Wright
(David C. Wright)
Member’s Class
Sergeant II
Type % Rate
Service Pension
Continuance:
60%
Effective Date
08-22-13
General Manager Ciranna gave the following update:
He announced for the record that on September 19, 2013 and pursuant to Government Code Section
54956.81, the Board approved an investment in the following private equity firm: Technology Crossover
Ventures VIII, L.P. That transaction closed on October 20, 2013.
Mr. Alan Manning, Assistant City Attorney had no report.
C.
COMMITTEE REPORTS
1. Audit Committee – Last met: 08/01/13; next meeting: January 2014
2. Benefits Committee – Last met: 10/03/13; next meeting: January 2014
3. Governance Committee – Last met: 06/20/13; next meeting: November 21, 2013
4. Ad Hoc Emerging Investment Managers – Last met: 04/04/13; next meeting: TBD
5. Ad Hoc Managers Fees Committee – Last met: 04/30/13; next meeting: TBD
6. Ad Hoc Space Planning Committee – Dissolved as of 10/17/13
President Navarro stated that he is speaking on behalf of the Ad Hoc Committee chairs. He requested the final
November 7, 2013
Page 9
reports for the Ad Hoc Managers Fees Committee and the Ad Hoc Emerging Investment Managers to close out
the Ad Hoc Committees. The current Ad Hoc committees have specific purposes and he would like to eliminate
them as soon as the work is done. The Governance Committee is scheduled to meet on November 21, 2013.
D.
CONSENT ITEMS
a. Minutes of the Regular Board meeting of March 6, 2008, March 20, 2008, July 18, 2013, August 1,
2013, August 15, 2013
b. Minutes of the Special Meeting of August 1, 2013
Commissioner von Voigt moved that the Board approve the consent items, which was seconded by
Commissioner Pleitez and approved by the following vote: ayes, Commissioners Diannitto, Hansell, Lippe,
Moore, Navarro, Vega, von Voigt, and President Navarro – 8; nays, none.
E.
There were no items referred for consideration.
F.
PUBLIC COMMENTS
There were no public comments.
Deputy City Attorney James Napier took the City Attorney Chair at this time.
G.
DISABILITY CASES
DISABILITY CLAIM – NEW – TIER 2 – 1
Robert A. Ruffino
(F)
Apparatus Operator
As recommended by staff and concurred in by the applicant, service connected disability pension is granted at
70% with no foreseeable purpose for review. Motion made by Commissioner von Voigt, seconded by
Commissioner Lippe and adopted by the following vote: ayes, Commissioners Diannitto, Hansell, Lippe, Moore,
Pleitez, Vega, von Voigt and President Navarro – 8; nays, none. Mr. Ruffino was not present, nor was his
attorney Mr. Thomas J. Wicke.
Assistant City Attorney Alan Manning took the City Attorney Chair at this time.
H.
1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.81 TO CONSIDER THE
PURCHASE OF THREE (3) PARTICULAR, SPECIFIC INVESTMENTS AND POSSIBLE BOARD
ACTION
November 7, 2013
Page 10
The Board met in closed session.
2. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 TO CONFER WITH
REAL PROPERTY NEGOTIATOR; Properties: 315 S. Hewitt Street and 713 E. 3rd Street; Negotiators:
David Weiner, Martin Cawley, Tom Lopez, Erika Tiedge; Negotiating parties: Sentinel Real Estate
Corporation and LAFPP; Under negotiation: Instruction to negotiator will concern price
This item was continued.
Upon reconvening in open session, President Navarro stated there was no public report.
President Navarro adjourned the meeting for a break at 9:21 a.m. and reconvened at 9:28 a.m.
Deputy City Attorney James Napier took the City Attorney Chair at this time.
G.
DISABILITY CASES (continued)
DISABILITY CLAIM – DEPENDENT CHILD – TIER 2 – 1
Janet A. Neal
Dependent child of Nathan W. Neal
(F)
Firefighter II (Deceased)
Denied. Motion to deny the petition for dependent child benefits made by Commissioner Lippe, seconded by
Commissioner Vega and adopted by the following vote: ayes, Commissioners Diannitto, Hansell, Lippe, Moore,
Pleitez, Vega, von Voigt, and President Navarro – 8; nays, none. Dr. Roland S. Jefferson, M.D. testified
regarding Ms. Neal. Ms. Neal was present and represented herself.
DISABILITY CLAIM – NEW – TIER 4 – 1
Marygrace Weaver
(P)
Police Officer III (Retired)
Prior benefit action of August 5, 2010 granting a service pension at 44.1836% is rescinded. Motion to grant a
service-connected disability pension at 71% is made by President Navarro, seconded by Commissioner von
Voigt and adopted by the following vote: ayes, Commissioners Diannitto, Lippe, Pleitez, Vega, von Voigt, and
President Navarro – 6; nays, Commissioner Hansell and Moore – 2. (Original motion to grant a nonserviceconnected disability pension at 50% was made by Commissioner Moore, seconded by Commissioner Hansell
and failed by the following vote: ayes, Commissioners Hansell, Moore, and Vega – 3; nays, Commissioners
Diannitto, Lippe, Pleitez, von Voigt, and President Navarro – 5.) Ms. Weaver was present and represented by
her attorney, Mr. Thomas J. Wicke.
Assistant City Attorney Alan Manning took the City Attorney Chair at this time.
November 7, 2013
Page 11
Commissioner Hansell recused himself from Item A.3. One of the firms interviewing is affiliated with CBRE. His
partners at his Paris and London offices do not represent CBRE but represent other entities affiliated with CBRE.
Based on the appearance of the impropriety standard, he concluded he needed to recuse himself, as confirmed with the
City Attorney’s Office. Commissioner Hansell left the board room for the remainder of meeting at 10:40 a.m.
President Navarro adjourned the meeting for a break at 10:41 a.m., and reconvened at 10:52 a.m.
A.
ITEMS FOR BOARD ACTION (continued)
3. PRESENTATIONS BY FINALIST CANDIDATES FOR GLOBAL REIT MANAGER SEARCH AND
POSSIBLE BOARD ACTION
Mr. Rick Rogers, Investment Officer III; Ms. Rebecca Gratsinger, CEO and Senior Consultant, and
Mr. Michael Ford, CFA, Senior Consultant were before the Board. Mr. Rogers stated this was the last stage
for the approval of a global REIT manager. The Board approved four separate managers for presentation
today and proceeded to interview the following firms:
CBRE Clarion Securities
Messrs. J.T. Straub, Director, Global Marketing & Client Services; and T. Ritson Ferguson, CEO and
Managing Director, Co-Chief Investment Officer
AEW Global Property Securities
Messrs. Jay W. Struzziery, Director, Investor Relations; Michael J. Acton, Director of AEW Research and
Member, Global Securities Allocation Committee – North America; and J. Hall Jones, Jr., Co-Portfolio
Manager – North America and Member, Global Securities Allocation Committee
President Navarro adjourned the meeting for a break at 11:59 a.m., and reconvened at 12:09 p.m.
Principal Real Estate Investors
Messrs. William A. Grayson, Director, Institutional Marketing; and Mr. Kelly Rush, Chief Investment
Officer, Global Real Estate Securities
EII Capital Management
Messrs. Kirsten McElroy, Managing Director, Marketing & Client Service; and Jim Rehlaender, Managing
Director, Portfolio Manager
Commissioner Diannitto ended his telephonic participation at 1:10 p.m.
Discussion/Selection
Mr. Tom Lopez, Ms. Rebecca A. Gratsinger, and Mr. Michael Ford came before the Board to answer
questions the Board may have regarding the managers.
November 7, 2013
Page 12
The Board Members discussed the allocation amount and the possibility of splitting the allocation between
two managers.
Board Members stated their opinion on the issue.
President Navarro stated that this is a large allocation. He was open to splitting the allocation between two
managers, EII and Principal as his preference.
Commissioner Lippe moved that the Board approve hiring two managers, Principal and EII, and to split the
allocation between the two managers equally, which motion was seconded by Commissioner Moore.
Board members further discussed the issue and stated their opinions.
Mr. Lopez provided an overview of investing with the same manager and the degree of overlap. He provided
an overview of various managers and indicated that the Board does not have to split the allocation equally.
Board members further discussed the issue.
President Navarro stated he was open to amending the motion to split the allocation unequally between the
two managers.
Commissioner Pleitez asked to amend the motion by allocating $200M to EII and $50M to Portfolio, and
that the negotiating authority is to get the best fee schedule. He later corrected himself by stating to allocate
$50M to Principal, not Portfolio.
Commissioner Lippe stated that $200M was a large allocation. He was agreeable to give $150M to EII and
$100M to Principal. As the seconder of the motion, Commissioner Moore agreed to Commissioner Lippe’s
amendment.
RESOLUTION 14054
Commissioner Lippe moved that the Board approve hiring two firms to manage the Global Real Estate
Investment Trust (REIT) mandate: Principal Real Estate Investors, LLC with an allocation as amended of
$100M, and EII Capital Management, Inc. with an allocation as amended of $150M, which motion was
seconded by Commissioner Moore and approved by the following vote: ayes, Commissioners Lippe, Moore,
Vega, von Voigt, and President Navarro – 5; nays, Commissioner Pleitez – 1.
President Navarro adjourned the meeting at 1:41 p.m.
President
Secretary
MINUTES
OF THE
BOARD MEETING OF FEBRUARY 6, 2014
The Board of Fire and Police Pension Commissioners of the City of Los Angeles met at the LACERS
Board Room, located at the Los Angeles Times Building, 202 W. First Street, Suite 500, Los Angeles
90012 on Thursday, February 6, 2014.
Belinda Vega, Vice President
George Aliano
Carl Cade
Emanuel Pleitez
Pedram Salimpour
Corinne Tapia
Robert von Voigt
Sam Diannitto
POLICE PENSIONS:
COURT REPORTER:
Diane L. Panicca, U.S. Legal Support
President Navarro called the meeting to order at 8:33 a.m. All of the above-listed Commissioners were
present at the start of the meeting with the exception of Commissioner Vega, who arrived at 8:39 a.m.
President Navarro recognized former Commissioner Wayne Moore for his service on the Board. Mr. Moore
stated that it was an honor for him to serve the citizens of Los Angeles and employees of the Fire and
Police Departments.
A.
1. THE POLICE DEPARTMENT RETIRED BOARD MEMBER ELECTION AND POSSIBLE
BOARD ACTION
February 6, 2014
Page 2
The board report was approved without discussion.
RESOLUTION 14078
Commissioner von Voigt moved that the Board:
1.
Authorize the General Manager to provide notification to the Office of the City Clerk (City
Clerk) and to cause to be prepared a Notice of Election in accordance with Section
23.103.16 of the Los Angeles Administrative Code (Administrative Code) for the 2014
Police Department Retired Board Member Election tentatively scheduled for April 22, 2014;
and
2.
Authorize the General Manager and Staff to perform the necessary administrative work
specified in the Administrative Code; to coordinate the election process as required with
the City Clerk and retired member associations; and to make technical corrections as
necessary to effectuate the intent of this report, which was seconded by Commissioner
Cade and approved by the following vote: ayes, Commissioners Aliano, Cade, Pleitez,
Salimpour, Tapia, von Voigt, and President Navarro – 7; nays, none.
2. CONSIDERATION OF INTEREST RATE TO BE CREDITED TO ACTIVE MEMBER
ACCOUNTS AS OF DECEMBER 31, 2013 AND POSSIBLE BOARD ACTION
The board report was approved without discussion.
MOTION
Commissioner von Voigt moved that the Board, in accordance with Board Rule 5.1, direct the
General Manager to credit the interest rate of 1.23% to active member accounts as of
December 31, 2013, which was seconded by Commissioner Aliano and approved by the following
vote: ayes, Commissioners Aliano, Cade, Pleitez, Salimpour, Tapia, von Voigt, Vega, and
President Navarro – 8; nays, none.
B. REPORTS TO THE BOARD
1. FOLLOW UP TO THE SUBSIDY PROGRAM AUDIT – HEALTH PLANS ADMINISTERED BY
THE LOS ANGELES POLICE RELIEF ASSOCIATION
The board report was received and filed without discussion.
2. President Navarro asked if any Board Member made any expenditure to influence State legislative
or administrative action to which their reply was negative.
3. Miscellaneous correspondence from money managers, consultants, etc. – Received and Filed.
February 6, 2014
Page 3
a. Benefits Actions approved by General Manager on January 16, 2014
Pursuant to Resolution 04008, adopted by the Board of Fire & Police Pension Commissioners
on August 7, 2003, the following benefit actions have been approved by the General Manager.
Charles F. Gilbertson
Melvin L. Tousseau
James S. Waldron
Police Service
Police Service
Police Service
Retired:
Retired:
Retired:
04-22-82
12-07-65
08-18-65
Died:
Died:
Died:
10-05-13
12-16-13
09-25-13
Retired:
Retired:
Retired:
Retired:
07-02-01
05-01-70
01-16-77
11-12-94
Died:
Died:
Died:
Died:
11-20-13
12-08-13
12-01-13
12-02-13
Retired:
11-16-12
Died:
11-15-13
Retired:
06-30-02
Died:
12-04-13
James E. Anderson
Francis J. Kilbride
Leland E. Moser
Ann E. Helder
Fire Service
Police Service
Police Service
Police Widow
Douglas R. Rogers
Fire Service
Ronald J. Taketa
Police Service
DISCONTINUED PENSIONS FORMER SPOUSE – TIER 2 – 1
Shirley L. Gantner
Police Service
Retired:
01-16-77
Member
Died:
12-01-13
Name
Lucy M. Gilbertson
La Junta C. Waldron
Deceased Member
Charles F. Gilbertson
James S. Waldron
Member’s Class
Police Service
Police Service
Effective Date
10-06-13
09-26-13
Member’s Class
Police Service
Police Disability
Effective Date
12-15-13
12-19-13
Member’s Class
Effective Date
Name
Patricia J. Anderson
Rose M. Legg
Deceased Member
M. L. Anderson
Melvin D. Legg
Name
Deceased Member
February 6, 2014
Page 4
Tori M. Rogers
Douglas R. Rogers
Fire Service
11-16-13
Name
Karen L. Taketa
Deceased Member
Ronald J. Taketa
Member’s Class
Police Service
Effective Date
12-05-13
ELIGIBLE SURVIVOR BENEFIT PURCHASE PROGRAM – TIER 1 – 1
Name
Ann Tousseau
Deceased Member
Melvin L. Tousseau
Member’s Class
Police Service
Effective Date
12-17-13
MODIFIED PARTIAL PAYMENT OF PENSION – TIER 2 – 1
In accordance with the City Attorney’s advice, a designated proportion of the community property interest of the
pension payable to John A. Matarazzo, Police Service Pensioner, being withheld for his former spouse, Bobby
J. Matarazzo, since November 1, 2013, should be released effective January 1, 2014.
MODIFIED PARTIAL PAYMENT OF PENSION – TIER 5 – 1
pension payable to Monte C. Houze, Police Service Pensioner, being withheld for his former spouse, Lola A.
Hampton, since November 1, 2013, should be released effective January 1, 2014.
DISCONTINUE PARTIAL PAYMENT OF PENSION – TIER 2 – 1
In accordance with the City Attorney’s advice, the designated proportion of the community property interest of
the pension payable to John F. Birrer, Police Service Pensioner, that was being paid to his former spouse,
Michelle M. Berry, is discontinued effective January 1, 2014. The discontinuance is pursuant to a Dissolution
Judgment to pay Michelle M. Berry a total of 20 years effective December 1, 1993 through December 31, 2013.
GUARDIANSHIP - TIER 1 – 1
The Letters of Guardianship, issued on May 3, 2013 in the Marion County, State of Oregon, Case Number
13C11821, appointing Stan Butterfield, Guardian of the Person and the Estate of La Junta C. Waldron,
surviving spouse of deceased Police Service Pensioner, James S. Waldron, has been filed with this office.
Pension payments will be paid to Stan Butterfield for the benefit of La Junta C. Waldron, effective September
26, 2013.
SERVICE PENSION – TIER 3 – 1
Police
Thomas H. Jackson, Jr.
Police Officer II
Eff:
10-18-13
15
Years
350
Days
Eff:
11-17-13
24
Years
2
Days
SERVICE PENSION – TIER 5 – 2
Police
Steven E. Johnson
Police Officer II +2
February 6, 2014
Page 5
Abelardo Parga
Lieutenant I
Eff:
12-15-13
25
Years
30
Days
Fire
Fred D. Fowlks
Retired:
02-03-09
Exit Close of:
01-31-14
Police
Roger W. Gilbert
Retired:
01-07-09
Exit Close of:
01-06-14
Retired:
07-01-13
Exit Close of:
01-31-14
Retired:
Retired:
Retired:
02-03-09
06-30-11
06-01-11
Exit Close of:
Exit Close of:
Exit Close of:
01-31-14
01-04-14
01-31-14
Fire
Roxanne V. Bercik
Curtis O. Black
Steven C. Boyle
Andrew E. Fields, Jr.
Robert L. Franz
Ronald D. Gardner
Peter J. Goff, Jr.
Jon D. Holtby
William C. Madden
Oscar M. Wait
Thomas P. Yost
Keith R. Young
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
02-01-10
01-31-09
01-29-09
07-01-09
01-08-09
09-01-09
04-04-11
01-31-09
01-27-09
01-27-09
02-01-09
01-27-09
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
01-31-14
01-30-14
01-28-14
01-31-14
01-07-14
01-31-14
01-31-14
01-30-14
01-26-14
01-26-14
01-31-14
01-26-14
Police
Judy L. Acosta
Efrain Baeza
Lorraine T. Barrios
Brenda S. Crump
Allen B. Daines
Raymond L. Dorsey, Jr.
James H. Johnston
Gregory Jones
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
05-29-12
01-05-09
01-03-12
06-03-13
01-04-11
01-03-12
01-17-09
01-15-09
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
01-31-14
01-04-14
01-31-14
01-31-14
01-17-14
01-31-14
01-16-14
01-14-14
Police
James C. Stoa
Police
Jesus M. Bazan
Carlos J. Islas
Ernest T. Matsumoto
February 6, 2014
Page 6
Morton N. Kishimoto
Robert L. Nobile
Edgar W. Palmer
James M. Reid
Jose J. Salazar
Erwin L. Stowell, Jr.
Frank A. Whitman
Joseph R. Williamson
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
01-30-09
01-07-09
07-01-11
02-02-09
02-02-09
02-02-09
02-05-09
10-21-13
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
Exit Close of:
01-29-14
01-06-14
01-31-14
01-31-14
01-31-14
01-31-14
01-31-14
01-17-14
PARTIAL PAYMENT OF DROP FUNDS – TIER 5 – 2
DROP funds payable to Andrew E. Fields, Jr., Fire Service Pensioner, is to be paid to his former spouse,
Lavette Fields, effective January 31, 2014.
DROP funds payable to Jose J. Salazar, Police Service Pensioner, is to be paid to his former spouse, Victoria
L. Salazar, effective January 31, 2014.
SERVICE-CONNECTED DISABILITY PENSION – TIER 5 – 1
Name
Michelle Y. Robles
Member’s Class
Police Officer III
Percentage
60.0000%
Effective Date
12-25-08
Board Date
12-05-13
Effective Date
12-19-13
Board Date
12-19-13
NONSERVICE-CONNECTED DISABILITY PENSION – TIER 3 – 1
Name
Christina L. Reppucci
Member’s Class
Police Officer II
Percentage
50.0000%
General Manager Ciranna gave the following updates:
1. The LAFPP Management Audit by Hewitt EnnisKnupp is pending signatures. He expects to
receive the report in a couple of weeks.
2. The March 6, 2014 Offsite Board meeting is scheduled for a full day from 8:00 AM – 3:15
PM. There are a variety of topics for everyone. He hopes that everyone is able to stay for
the duration of the meeting.
3. In regards to the recalculation of investment manager fees, staff prepared an RFP and has
reviewed the respondents. RVK has been selected to conduct the work.
4. There is a new Web site entitled, Transparent California that contains pension and salary
data for many California public agencies. It contains a page with LAFPP pensioner names
and amounts. The data was obtained from LAFPP pursuant to a California Public Records
Act Request.
February 6, 2014
Page 7
Mr. Alan Manning, Assistant City Attorney had no updates to report.
C.
COMMITTEE REPORTS
1. Audit Committee – Last met: 01/16/14; next meeting: February 20, 2014
2. Benefits Committee – Last met: 12/06/13; next meeting: Tentative on 05/15/14
3. Governance Committee – Last met: 11/21/13; next meeting: Tentative on 03/20/14
4. Ad Hoc Emerging Investment Managers – Last met: 04/04/13; next meeting: February 6, 2014
5. Ad Hoc Managers Fees Committee – Last met: 04/30/13; next meeting: TBD
President Navarro stated the upcoming committee meeting dates.
D.
CONSENT ITEMS
a. Minutes of the Regular Board meeting of October 3, 2013 and October 17, 2013
b. Minutes of the Special Board of October 3, 2013
2. Findings of Fact
a. Robert Yanez – Tier 4
MOTION
Commissioner von Voigt moved that the Board approve the consent items, which was seconded by
Commissioner Aliano and approved by the following vote: ayes, Commissioners Aliano, Cade,
Pleitez, Salimpour, Tapia, von Voigt, Vega, and President Navarro – 8; nays, none.
E.
There were no items referred for consideration.
F.
PUBLIC COMMENTS
Ms. Elsa Moy gave a public comment.
G.
DISABILITY CASES
February 6, 2014
Page 8
DISABILITY CLAIM – BOARD ORDERED REVIEW – TIER 5 – 1
Lisa M. Gallegos
(P)
Sergeant I (Retired)
As recommended by staff and concurred in by the applicant, prior Board Action of October 16, 2008
granting a service-connected disability pension at 60% remains unchanged. Motion made by
Commissioner Pleitez, seconded by Commissioner Aliano and adopted by the following vote: ayes,
Commissioners Aliano, Cade, Pleitez, Salimpour, Tapia, von Voigt, Vega, and President Navarro – 8;
nays, none. Ms. Gallegos was not present, and neither was her attorney Michael Dale Williamson.
DISABILITY CLAIM – SURVIVING SPOUSE – TIER 5 – 1
Dora Gandara
(P)
Surviving Spouse of Tom Gandara, III
Sergeant II (Deceased)
Prior Board Action of February 12, 2012 granting a nonservice-connected surviving spouse pension
was readopted. Motion made by Commissioner Aliano, seconded by Commissioner Vega and
adopted by the following vote: ayes, Commissioners Aliano, Cade, Pleitez, Salimpour, Tapia,
von Voigt, Vega, and President Navarro – 8; nays, none. Catherine Gandara and Detective I Thomas
Gandara, Legal Affairs, Los Angeles Police Department, testified regarding Sergeant Gandara.
Mrs. Gandara was present, and represented herself.
H.
1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.8 TO CONFER
WITH REAL PROPERTY NEGOTIATOR; Properties: 315 S. Hewitt Street and 713 E. 3rd
Street; Negotiators: David Weiner, Martin Cawley, Tom Lopez, Erika Tiedge; Negotiating
parties: Sentinel Real Estate Corporation and LAFPP; Under negotiation: Instruction to
negotiator will concern price
2. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) TO
CONFER WITH LEGAL COUNSEL REGARDING PENDING LITIGATION IN THE CASE
ENTITLED CHARLES E. HILL V. CITY OF LOS ANGELES ET AL. (LOS ANGELES
SUPERIOR COURT CASE NO. KC066247G)
Upon reconvening in open session, President Navarro stated there was no public report.
Item A.2 was reconsidered.
A.
February 6, 2014
Page 9
2. CONSIDERATION OF INTEREST RATE TO BE CREDITED TO ACTIVE MEMBER
ACCOUNTS AS OF DECEMBER 31, 2013 AND POSSIBLE BOARD ACTION
Commissioner Cade requested to reconsider the Item A2.
Mr. Alan Manning instructed the Board that it has to vote for approval to reconsider the item.
RESOLUTION 14080
Commissioner Cade moved that the Board reconsider Item A.2, Consideration of Interest Rate to
be Credited to Active Member Accounts as of December 31, 2013, which was seconded by
Commissioner Vega and approved by the following vote: ayes, Commissioners Aliano, Cade,
Pleitez, Salimpour, Tapia, von Voigt, Vega, and President Navarro – 8; nays, none.
General Manager Ciranna stated there was a miscalculation of the Average Asset Balance in the
report. The actual Average Asset Balance is $14,307, 255,658 and the interest rate will drop from
1.23% to 1.22%. He asked that the Board reconsider the corrected interest rate.
RESOLUTION 14081
Commissioner Cade moved that the Board, in accordance with Board Rule 5.1, direct the General
Manager to credit the interest rate of 1.22% to active member accounts as of December 31, 2013,
which was seconded by Commissioner Aliano and approved by the following vote: ayes,
Commissioners Aliano, Cade, Pleitez, Salimpour, Tapia, von Voigt, Vega, and President Navarro
– 8; nays, none.
The meeting adjourned at 9:29 AM.
President
Secretary
ITEM: E.1.b
MINUTES
OF THE
SPECIAL BOARD MEETING OF NOVEMBER 21, 2013
The Benefits Committee and members of the Board of Fire and Police Pension Commissioners of the City
of Los Angeles met at the LACERS Board Room, located at the Los Angeles Times Building, 202 W.
First Street, Suite 500, Los Angeles 90012 on Thursday, November 21, 2013.
COMMITTEE
MEMBERS PRESENT:
COMMITTEE MEMBER
ABSENT:
OTHER MEMBERS PRESENT:
BENEFITS COMMITTEE
SUPPORT STAFF:
POLICE PENSIONS:
Sam Diannitto
Belinda Vega
Robert von Voigt
George Aliano, Chair
Dean Hansell
Wayne Moore
Ruben Navarro
Emanuel Pleitez
Raymond Ciranna, General Manager
The Benefits Committee will be noted as a Special Board meeting since more than four Commissioners
were present. Commissioner Vega chaired the meeting and called the meeting to order at 8:52 a.m. All of
the above Commissioners were present at the start of the meeting.
HEALTH AND DENTAL SUBSIDY PROGRAM AND POSSIBLE COMMITTEE ACTION
Mr. Anthony Torres, Senior Management Analyst I, Medical and Dental Benefits Section stated that at
the last Board meeting, the board rules pertaining to the health and dental subsidy program were
Special Board Meeting of November 21, 2013
Page 2
discussed. He presented two sets of modifications to the Committee that were proposed by
Commissioner Hansell, and proposed by the Associations.
A handout distinguishing the revisions suggested by the Associations, staff, and Commissioner
Hansell was passed out to the Committee.
Mr. Torres reviewed the modifications. The Board and Committee members considered the proposed
modifications and suggested the following additional changes to Section 8.0 of the board rules:
1) Section 8.1 J, remove the word “willfully”;
2) Section 8.1 K, remove from the last paragraph, “… to the extent the pensioner is legally
entitled to such premium refund from the group plan”;
3) Section 8.3 G, modify the last sentence in the last paragraph to read: “When determining
extreme financial hardship, the Board may take into consideration the pensioner’s inability to
meet his or her ongoing financial obligations, including but not limited to obligations relating
to housing, transportation, food, medical care or dental care.
Mr. Ken Buzzell, Director, Los Angeles Retired Fire & Police Association, Inc. (LARFPA) gave a
public comment. He asked for clarification as to whom this policy will apply to because there are
some pensioners who are currently on a payment schedule.
Mr. Torres clarified that this particular case does not involve Medicare Part B premium
reimbursement, which is what this rule addresses. He suggested adding language to read,
4) “This particular language will not change any repayment agreement in effect as of the adoption
of these rules.”
The Committee approved the modifications as discussed.
MOTION
Commissioner Vega moved that the Committee direct staff to make the additional modifications to the
Board Operating Policies and Procedures, Section 8.0 as discussed today and return the revised board
rules Section 8.0 to the Benefits Committee, seconded by Commissioner von Voigt and approved by
the following vote: Commissioners Diannitto, von Voigt, and Chair Vega – 3; nays, none.
2. PUBLIC COMMENTS
No additional public comments were made.
Special Board Meeting of November 21, 2013
Page 3
The meeting was adjourned at 9:19 a.m.
Chair
Secretary
ITEM: E.1.b
MINUTES
OF THE
SPECIAL BOARD MEETING OF DECEMBER 5, 2013
The Benefits Committee and members of the Board of Fire and Police Pension Commissioners of the City
of Los Angeles met at the LACERS Board Room, located at the Los Angeles Times Building, 202 W.
First Street, Suite 500, Los Angeles 90012 on Thursday, December 5, 2013.
COMMITTEE
MEMBERS PRESENT:
OTHER MEMBERS PRESENT:
BENEFITS COMMITTEE
SUPPORT STAFF:
POLICE PENSIONS:
George Aliano, Chair
Sam Diannitto (participated telephonically)
Belinda Vega
Robert von Voigt
Ruben Navarro
Gregory Lippe
Raymond Ciranna, General Manager
The Benefits Committee will be noted as a Special Board meeting since more than four Commissioners
were present. Chair Aliano called the meeting to order at 8:32 a.m. All of the above Commissioners were
present at the start of the meeting.
HEALTH AND DENTAL SUBSIDY PROGRAM AND POSSIBLE COMMITTEE ACTION
General Manager Ciranna stated he had prior discussions with Mr. John Jacobsen, President of the
Los Angeles Firemen’s Relief Association and he was in agreement with the proposed policy
revisions.
Mr. Anthony Torres, Senior Management Analyst II of the Medical and Dental Benefits Section,
Pensions Division noted the policy revisions and specifically, clarification regarding the language on
Special Board Meeting of December 5, 2013
Page 2
financial hardships that was discussed at the November 21, 2013 Committee meeting. Mr. Torres
stated that he spoke to UFLAC representatives and they were in agreement with the policy revisions.
MOTION
Commissioner von Voigt moved that the Committee recommend to the Board adoption of the
proposed revisions to the Board Operating Policies and Procedures, Section 8.0 – Health and Dental
Subsidies and Reimbursements, seconded by Commissioner Vega and approved by the following vote:
ayes, Commissioners Diannitto, von Voigt, Vega, and Chair Aliano – 4; nays, none.
2. PUBLIC COMMENTS
The meeting was adjourned at 8:35 a.m.
Chair
Secretary
ITEM: E.1.b
MINUTES
OF THE
SPECIAL BOARD MEETING OF FEBRUARY 6, 2014
The Ad Hoc Emerging Investment Managers Committee and members of the Board of Fire
and Police Pension Commissioners of the City of Los Angeles met at the LACERS Board
Room, located at the Los Angeles Times Building, 202 W. First Street, Suite 500, Los Angeles
90012 on Thursday, February 6, 2014.
COMMITTEE
MEMBERS PRESENT:
OTHER BOARD MEMBERS:
AD HOC COMMITTEE
SUPPORT STAFF:
POLICE PENSIONS:
Emanuel Pleitez, Chair
George Aliano
Carl Cade
Belinda Vega
Ruben Navarro
Pedram Salimpour
Corinne Tapia
The Ad Hoc Emerging Investment Managers Committee will be noted as a Special Board
meeting since more than four Commissioners were present. President Navarro called the
meeting to order at 9:29 a.m. All of the committee members in attendance were present at the
start of the meeting.
1. ELECTION OF CHAIR AND POSSIBLE COMMITTEE ACTION
MOTION
Commissioner Cade nominated Commissioner Pleitez to Chair the Ad Hoc Emerging
Investment Manager Committee, seconded by Commissioner Vega and approved by
Special Board Meeting of February 6, 2014
Page 2
the following vote: ayes, Commissioners Aliano, Cade, Pleitez and Vega – 4; nays,
none.
Chair Pleitez chaired the remainder of the meeting.
General Manager Ciranna requested that the Committee consider Item 3 prior to Item 2 to
provide the Committee background information.
Item 3 was taken out of order.
3. DISCUSSION OF PRIOR AD HOC EMERGING INVESTMENT MANAGERS
COMMITTEE REPORTS
Messrs. Tom Lopez, Chief Investment Officer (CIO); Rick Rogers, Investment Officer III;
and Paul Palmer, Investment Officer II; were before the Committee.
Mr. Rogers stated the handout distributed to the Board is a summary of the board report
attachments. Mr. Rogers opened the discussion with questions from the Board.
Mr. Lopez provided a history of the Emerging Manager Program, varying from target
ranges to asset allocation.
Mr. Alan Manning stated that under the California Constitution Proposition 209, the
Board is not allowed to give preferences based on race, gender, etc. when hiring
managers. Emerging managers are different from minority and women owned
businesses in that they are set up based on their categories, the amount of assets they
have under management, their established time in the business, and other relevant
factors.
Mr. Lopez stated that the third party database provided by RV Kuhns lists minority and
women owned firms from all asset classes. He further discussed how the search
program works to distinguish minority and woman owned firms.
Mr. Jim Voytko went before the Board to address Chair Pleitez’s request to export the
database to a different format such as excel. He indicated that the Board is able to use
the database but was most likely unavailable to publish.
President Navarro requested that the Committee discuss the status of the U.S. Equity
component.
Commissioner Pleitez concluded the discussion on the reliability of the database and
inquired if other databases existed and what, if any, other options were available.
Mr. Jim Voytko addressed Chair Pleitez’s concerns stating that the database was
comprehensive and to his knowledge that there was no other existing database.
Page 3
The Committee further discussed databases and Committee members voiced their
preferences as to whether or not it is advantageous to look into other existing
databases.
The board report was received and filed.
2. DISCUSSION OF THE RESULTS OF THE DOMESTIC EQUITY MANAGER OF
EMERGING MANAGERS SEARCH AND POSSIBLE COMMITTEE ACTION
Messrs. Tom Lopez, Rick Rogers, Paul Palmer; and Jim Voytko were before the Board.
Mr. Rogers provided a history of emerging managers program, and the details of the
Request For Information (RFI) process. The committee report is a duplicate from the
January 16, 2014 board report.
Commissioner Cade suggested the Committee address 1) is emerging managers as an
actively managed subset of actively managed funds an appropriate place for the Board
to be investing large amounts of money in efficient asset classes and 2) can any portion
of this work be performed by staff versus the fund of funds model.
Commissioner Vega stated she was interested in discussing whether or not to use a mix
of direct hires and fund of funds, or either model when hiring emerging managers.
President Navarro provided some history of the emerging manager program and stated
his concerns regarding the value of program and the policy to remove bad managers.
The Board discussed fees. Mr. Lopez provided an overview of fee rates from among the
small, midcap and large cap stocks and indicated that the Board has many options to
consider.
Mr. Lopez indicated that the Investment staff has had prior experience in handling direct
hires and has managed more managers in the past. He further discussed the various
options for consideration in the emerging manager portfolio.
The Board discussed the possibility of interviewing the firms and the logistics of meeting
with nine firms.
General Manager Ciranna stated that this has been a good discussion on the topic of
emerging managers. He suggested it may be appropriate to give the Ad Hoc Committee
more information as requested, allow Committee members time to review the
information, and then proceed to interview the firms.
The Board continued their discussion on the number of managers to interview and to
set specific parameters.
Page 4
Chair Pleitez requested that the interviews be held at the next Ad Hoc meeting with the
intent that the meeting is yet to be scheduled.
Mr. Alan Manning stated that he thought that the intent of this item was to educate the
Ad Hoc Committee as to what model to use for hiring emerging managers. He stated
that the Board’s Governance rules are that only Committee members may vote on items
at Committee meetings. Although the Ad Hoc Committee meeting is now considered a
Special Board Meeting with a quorum of the Board, he suggested the Ad Hoc
Committee’s recommendation go before the Board.
President Navarro suggested as a future agenda item that the Board discuss the issue
of committee meetings turning into Special Board meetings and the potential for board
actions.
General Manager Ciranna suggested that the Ad Hoc Committee recommend
interviewing the nine firms to the full Board.
Mr. Ken Buzzell, Director, Los Angeles Retired Fire & Police Association, Inc. gave a
public comment.
Mr. Alan Manning stated that the Ad Hoc Committee has taken the action to
recommend to the full Board that interviews be held and deemed the action appropriate.
MOTION
Commissioner Cade moved that the Committee recommend to the Board to interview
the nine firms responding to the RFI for Managers of Emerging Managers, seconded by
Commissioner Aliano and approved by the following vote: ayes, Commissioners Aliano,
Cade, Vega, and Chair Pleitez – 4; nays, none.
4. PUBLIC COMMENTS
There were no additional public comments.
The meeting adjourned at 11:07 p.m.
Chair
Secretary
ITEM: E.1.b
MINUTES
OF THE
SPECIAL BOARD MEETING OF FEBRUARY 20, 2014
The Audit Committee and members of the Board of Fire and Police Pension Commissioners of
the City of Los Angeles met at the LACERS Board Room, located at the Los Angeles Times
Building, 202 W. First Street, Suite 500, Los Angeles 90012 on Thursday, February 20, 2014.
COMMITTEE
MEMBERS PRESENT:
COMMITTEE MEMBER
ABSENT:
OTHER COMMISSIONERS
PRESENT:
AUDIT COMMITTEE
SUPPORT STAFF:
POLICE PENSIONS:
Robert von Voigt, Chair
George Aliano
Emanuel Pleitez
Corinne Tapia
Carl Cade
Ruben Navarro
Pedram Salimpour
Erin Kenney, Departmental Audit Manager
Theresa Stamus, Senior Assistant City Attorney
Chair von Voigt called the meeting to order at 8:37 a.m. indicating a quorum was established.
The Audit Committee will be noted as a Special Board meeting since more than four
Commissioners were present.
1.
COMMITTEE REVIEW OF STATUS UPDATE TO THE 2013 ANNUAL AUDIT PLAN
AND FORECAST, AND PROPOSED 2014 ANNUAL AUDIT PLAN AND FORECAST;
AND POSSIBLE COMMITTEE ACTION
Ms. Erin Kenney, Departmental Internal Auditor provided an update to the 2013 Audit
Special Meeting of February 20, 2014
Page 2
Plan and Forecast. She highlighted the 2013 subsidy program audits with the
Los Angeles Fire Relief Association and Los Angeles Police Relief Association. She
presented the proposed 2014 Audit Plan and Forecast noting the format changes and
highlighted various projects.
The Committee approved the report as submitted.
MOTION
Commissioner Aliano moved that the Audit Committee:
1. Review the status update to the 2013 Annual Audit Plan and Forecast (AAPF); and
2. Review the proposed 2014 AAPF and recommend it to the full Board for approval,
seconded by Commissioner Pleitez and approved by the following vote: ayes,
Commissioners Aliano, Pleitez, and Chair von Voigt – 3; nays, none.
2.
PUBLIC COMMENTS
The meeting adjourned at 8:43 a.m.
Chair
Secretary
ITEM: E.1.b
MINUTES
OF THE
SPECIAL BOARD MEETING OF MARCH 6, 2014
The Board of Fire and Police Pension Commissioners of the City of Los Angeles met at the California
Endowment, The Yosemite Room, located at 1000 North Alameda Street, Los Angeles 90012 on
Thursday, March 6, 2014.
George Aliano
Carl Cade
Emanuel Pleitez
Pedram Salimpour
Corinne Tapia
Robert von Voigt
Sam Diannitto
POLICE PENSIONS:
Theresa Stamus, Senior Assistant City Attorney
President Navarro called the Special meeting to order at 8:29 a.m. All of the above-listed Commissioners
were present at the start of the meeting with the exception of Commissioner Salimpour, who arrived at 8:36
a.m.
President Navarro commended staff for the tremendous job on fulfilling the Board’s educational needs by
coordinating great speakers and pertinent information at this event. He encouraged Board Members to ask
questions and hopes that this educational session is beneficial for everyone.
Item B was taken out of order.
B. GENERAL PUBLIC COMMENT ON MATTERS WITHIN THE BOARD’S JURISDICTION
Special Meeting of March 6, 2014
Page 2
A. GENERAL MANAGER’S REPORT
1. Business relating to Department operations
General Manager Ciranna welcomed everyone to the Sixth Annual Offsite meeting. The session
provides an opportunity to ensure the Board Members and stakeholders are educated in pension
related topics. He thanked the representatives from the various Associations and City departments
for their participation. He thanked the staff for their efforts in coordinating the offsite meeting. The
topic on ethics will be presented at a future board meeting since Mr. Harvey Leiderman, with Reed
Smith, LLP, was unable to attend the meeting today because of medical reasons. This session is a
Board meeting and, as such, we ask that everyone adheres to the rules and protocols of a regular
Board meeting. He asked that everyone speak into the microphones. He introduced Ms. Stephanie
Clements, Chief Management Analyst, Administrative Operations Division as the facilitator of the
meeting.
BOARD RETREAT
Introductions and Objectives
Ms. Stephanie Clements, Chief Management Analyst, Administrative Operations Division facilitated the
session. She thanked the California Endowment for the use of the room. She encouraged the audience
to speak into the microphone when asking questions and to complete the evaluation form at the end of
the session. Ms. Clements introduced the first speakers, Messrs. Todd Hughes and Gregory Garrett
from Portfolio Advisors.
Overview of Private Equity and LAFPP’s Current Portfolio
Speakers: Messrs. Todd Hughes and Gregory Garrett, Managing Directors, Portfolio Advisors
Messrs. Hughes and Garrett gave an overview of investing in private equity and answered the Board’s
questions.
Ms. Clements informed the audience if they wish to hear more discussion on this topic to note that in
the evaluation form. She proceeded to introduce the next topic and speaker, Ms. Laurie LoFranco.
Healthcare Reform
Speaker: Ms. Laurie LoFranco, Assistant Vice President, Keenan & Associates
Page 3
Ms. LoFranco provided an overview of the Affordable Care Act (ACA), how it may impact pension plan
members, and discussed the Cadillac Tax. She answered questions from Board members and the
audience.
Ms. LoFranco stated she will provide the Board information regarding the Cadillac Tax, as requested.
The Board recessed for break at 10:20 a.m. and reconvened at 10:34 a.m.
Ms. Clements introduced Mr. Anthony Torres as the panel moderator for the healthcare reform topic.
Healthcare Reform Panel
Moderator: Mr. Anthony Torres, Senior Management Analyst II, Medical and Dental Benefits, LAFPP;
Panelists: Mr. Steve Gedestad, Executive President, Keenan & Associates; Ms. Dawna Gray,
President of Bradawn, Inc.; Ms. Maryanne Keehn, Manager of the Benefits & Compensation Policy
Section of the Chief Executive Office for Los Angeles County; and Ms. Lita Payne, Assistant General
Manager, LACERS.
Mr. Torres introduced the four panelists. He then proceeded to question the panelists regarding the
impact of the Affordable Care Act on health plans and members. The panel answered the questions
from the moderator and the audience.
Ms. Clements introduced Mr. Paul Angelo and Ms. Connie Perez.
GASB 67 & 68 Implementation
Speakers: Paul Angelo, Actuary, The Segal Company and Ms. Connie Perez, Partner at Brown
Armstrong.
Mr. Angelo and Ms. Perez provided an overview of the Governmental Accounting Standards Board
(GASB) 67 & 68 implementation requirements and how it may impact LAFPP and the City.
Commissioner Cade left for the remainder of the meeting at 12:38 p.m.
The Board recessed for lunch at 12:21 p.m. and reconvened at 1:02 p.m.
Ms. Clements introduced Mr. Jim Voytko, Chief Operating Officer from RV Kuhns.
Asset Allocation Primer
Mr. Voytko provided an overview of asset allocation principles and answered the Board’s questions.
Commissioner Tapia left for the remainder of the meeting at 2:08 p.m.
Page 4
Ms. Clements thanked Mr. Voytko for his presentation.
The Board recessed for break at 2:11 p.m. and reconvened at 2:20 p.m.
Commissioner von Voigt left for the remainder of the meeting at 2:16 p.m.
Ms. Clements introduced the next topic and speaker, Mr. Paul Angelo.
Experience Study 101
Speaker: Paul Angelo, Actuary, The Segal Company
Mr. Angelo gave an overview of the upcoming actuarial Experience Study and answered the Board’s
questions.
General Manager Ciranna thanked Mr. Angelo and indicated that this concludes the session. There
were questions regarding private equity and healthcare and he will schedule follow-up sessions. He
welcomed comments to improve the offsite meeting and asked Board members to please indicate on
the evaluation survey if additional information is needed in certain areas.
President Navarro stated that this forum works very well. He wanted to ensure that the educational
pace works with each Board member.
The meeting adjourned at 3:17 p.m.
President
Secretary
ITEM: E.1.b
MINUTES
OF THE
SPECIAL BOARD MEETING OF MARCH 6, 2014
The Board of Fire and Police Pension Commissioners of the City of Los Angeles met at the California
Endowment, Sierra Room and The Yosemite Room, located at the 1000 North Alameda Street,
Los Angeles 90012 on Thursday, March 6, 2014.
COMMISSIONERS ABSENT:
POLICE PENSIONS:
George Aliano
Emanuel Pleitez
Corinne Tapia
Robert von Voigt
Carl Cade
Sam Diannitto
Pedram Salimpour
James Napier, Deputy City Attorney
President Navarro called the Special meeting to order at 7:55 a.m. All of the above-listed Commissioners
were present at the start of the meeting with the exception of Commissioner Tapia, who arrived at 7:57
a.m.
1. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b)(1) TO
CONFER WITH LEGAL COUNSEL REGARDING PENDING LITIGATION REGARDING
CHARLES E. HILL
2. GENERAL PUBLIC COMMENT ON MATTERS WITHIN THE BOARD’S JURISDICTION
Page 2
Upon reconvening in open session in The Yosemite Room, President Navarro stated that the Board
rejected a claim filed by Mr. Charles Hill.
The meeting adjourned at 8:28 a.m.
President
Secretary
(213) 978-4545
JUNE 5, 2014
ITEM: E.2
FROM:
SUBJECT:
APPROVAL OF TRAVEL AUTHORITY (SALIMPOUR) – CALAPRS, PRINCIPLES
OF PENSION MANAGEMENT FOR TRUSTEES
RECOMMENDATION
That the Board approve Commissioner Pedram Salimpour’s request to attend the California
Association of Public Retirement Systems (CALAPRS), Principles of Pension Management for
Trustees on August 5 – 8, 2014 in Stanford, CA.
DISCUSSION
Commissioner Salimpour expressed interest in participating in the following conference:
Conference:
Sponsor:
Dates:
Location:
Principles of Pension Management for Trustees
California Association of Public Retirement Systems
August 5 – 8, 2014
Stanford, CA
Commercial airline
BUDGET
Estimated cost for Commissioner Salimpour:
Registration
Airfare
Hotel (Inclusive of registration fee)
Per Diem
Incidentals (mileage, baggage fee, ground transportation & parking)
TOTAL
$ 2,500.00
237.00
0.00
107.00
235.00
$3,079.00
POLICY
If approved by the Board, the proposed expenditures would be within the Board’s Travel and
Education Policy.
All information regarding the conference is contained in the attached agenda.
RPC:SC:EM
Attachment - conference agenda
Board Report
Page 2
June 5, 2014
Attachment
August 5-8, 2014
Stanford University Law School
559 Nathan Abbott Way
Stanford, CA 94305
Registration will open in early Summer 2014
Agenda
Program agenda will be posted here and distributed to member systems as soon as it becomes available.
About the Course
Public Pension Fund Trustees bear a heavy fiduciary burden. On a cumulative baSis, California's Constitution holds our members' 350 Trustees accountable
for the stewardship of more than $450 Billion in retirement fund assets. 40 California public pension systems belong to CALAPRS. Over the past fifteen
years, Trustees of our member retirement systems have participated in this unique training program presented exclusively for California public retirement
system board members. This training focuses on the practical aspects of our Trustees' duties.
Why attend?
• To gain insight into public pension policy issues
• To discuss alternative solutions to common problems
• To understand the complexities involved in administering public pension plans
• To appreciate the differences and similarities among California public pension plans
• To network with other Trustees and pension professionals
• To increase familiarity with pension terminology and concepts
• To receive the ethics training required for new Trustees
Who should attend?
The course is for new trustees. Attendance is recommended within the first few years after assuming office. Experienced Trustees will use the program as a
comprehensive refresher cou rse. This course is a prerequisite to the CALAPRS Advanced Principles of Pension Management for Trustees at UCLA.
Registration
Registration for this course will open in Summer 2014. Member systems will be notified when the application form is available. Registration includes
lodging, meals, and materials. Each system may enroll one Trustee as a "Delegate" and designate one additional Trustee as "1st Alternate" with the
remainder as "2nd Alternate". Delegates will be admitted first. If vacancies remain, 1st Alternates will be admitted in the order received, followed by 2nd
Alternates.
Tuition must be paid in full prior to attending the course and must be paid by check. Cash and credit will not be accepted. Tuition cost will be $2,500.
Lodging
Registration includes accommodations for all delegates. CALAPRS highly recommends that everyone, even those who live locally, stay in the lodging
provided to ensure thorough participation in the course. CALAPRS will make reservations for all attendees at the following location:
Sheraton Palo Alto Hotel
675 El Camino Real
Palo Alto, CA 94301

agenda - Los Angeles Fire and Police Pensions

Transcription

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