Minutes - Los Angeles Fire and Police Pensions

Transcription

Minutes - Los Angeles Fire and Police Pensions
MINUTES
OF THE
BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
MEETING OF FEBRUARY 5,2009
The Board of Fire and Police Pension Commissioners of the City of Los Angeles met in Room 800,360 East
Second Street, on Thursday, February 5,2009.
COMMISSIONERS PRESENT:
Sean Harrigan, President
Mike Carter, Vice President
George V. Aliano
Elliott Broidy
Maria Contreras-Sweet
Steve Juarez (telephonic participation)
Patricia Means
Robert von Voigt
COMMISSIONERS ABSENT:
Sam Diannitto
DEPARTMENT OF FIRE AND
POLICE PENSIONS:
CITY ATTORNEY'S OFFICE:
Michael A. Perez, General Manager
D. Edward Griffiths, Assistant General Manager
Laura Guglielmo, Assistant General Manager
Tom Lopez, Chief Investment Officer
Barbara H. Nobregas, Commission Executive Assistant
Mary Jo Cunven, Deputy City Attorney
Board President Harrigan called the regular meeting to order at 9:06 a.m. All of the above-listed Commissioners
were present at the start of the meeting, with the exception of Commissioner Contreras-Sweet who arrived at 9: 15
a.m.
1.
NEW BUSINESS
President Harrigan asked if any Board Member made any expenditure to influence State legislative or
administrative action to which their reply was negative.
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 2
2.
COMMUNICATIONS TO THE BOARD
A. Miscellaneous correspondence from money managers, consultants, etc. - Received and Filed
B. Communications to the Board from Aldus Capital, LLC - Received and Filed
3.
COMMITTEE REPORTS
A. Benefits Committee
Chair Aliano reported no meeting has been scheduled.
B. Governance Committee
General Manager Perez reported a meeting is scheduled on March 19, 2009 regarding travel and IFS
Audit recommendations.
C. Audit Committee
Chair Means reported a meeting is scheduled on February 19,2009.
D. Ad Hoc Committee on Emerging Managers
Chair Means reported that she will schedule a meeting.
4.
PENSION CONSULTING ALLIANCE AND STAFF REVIEW OF LAFPP BOARD INVESTMENT
POLICIES
General Manager Perez reported that the Charter requires LAFPP review the Board Investment Policies.
President Harrigan asked that the Commissioners get copies of the updated Board Policies.
5.
PENSION CONSULTING ALLIANCE 2009 ANNUAL RETREAT FOLLOW UP
Messrs. Allan Emkin, Managing Director, Pension Consulting Alliance (PCA) and Tom Lopez, Chief
Investment Officer, Investments Division, came before the Board. A discussion was held on the various
investment opportunities such as portable alpha, infrastructure, sustainability, real return and asset allocation.
The Board agreed with PCA to return within 60 days with a policy or to discuss sustainable investing. The
Board also agreed with PCA that they work with staff to return within 30 days to discuss opportunistic
investing and scenarios from the actuary prior to conducting an asset allocation study.
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 3
6.
FEEDBACK ON THE 2009 BOARD EDUCATIONAL RETREAT
Ms. Laura Guglielmo, Assistant General Manager, Administrative Operations Division came before the Board
and gave a summary of the Retreat fees. The Board discussed future topics and speakers for the 201 0 Board
Retreat. Commissioner Carter suggested having a panel of Chief Investment Officers. President Harrigan
suggested that the Board Members relay their suggestions to Ms. Guglielmo.
7.
AUTHORIZATION FOR RETROACTIVE MISCELLANEOUS INFORMATION REQUESTS FROM OUR
ACTUARY
Ms. Robyn Barnes, Senior Management Analyst 11, Communications and Special Projects came before the
Board to discuss actuarial services. The expenses were approved as submitted.
RESOLUTION 09082
That the Board:
1. Approve the attached Letters of Agreement for actuarial services not specified in the current contract
with the System's actuary, The Segal Company, at a total cost not to exceed $17,500; and,
2. Authorize the President of the Board, on behalf of the Board, to execute the Letters of Agreement,
subject to City Attorney approval as to form and legality, and include the signature of the General
Manager, which motion was seconded by Commissioner Aliano and approved by the following vote:
ayes, Commissioners Aliano, Broidy, Carter, Contreras-Sweet, Juarez, Means, von Voigt and President
Harrigan -8; nays, none.
8.
AUTHORIZATION FOR MISCELLANEOUS ACTUARIAL CONSULTING REQUESTS
Ms. Robyn Barnes, Senior Management Analyst 11, Communications and Special Projects came before the
Board to discuss actuarial services. The expenses were approved as submitted. President Harrigan also
authorized the Actuary to run tables on various scenarios containing two negative years of return into the
existing letter of agreement, if the total cost permitted.
RESOLUTION 09083
Commissioner Contreras-Sweet moved that the Board:
1. Approve the attached Letter of Agreement for actuarial services not specified in the current contract with
the System's actuary, The Segal Company, at a total cost not to exceed $20,000; and,
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 4
2. Authorize the President of the Board, on behalf of the Board, to execute the Letter of Agreement, subject
to City Attorney approval as to form and legality, and include the signature of the General Manager, which
motion was seconded by Commissioner Carter and approved by the following vote: ayes, Commissioners
Aliano, Broidy, Carter, Contreras-Sweet, Juarez, Means, von Voigt and President Harrigan -8; nays, none.
9.
UPDATE ON THE 2008-09 STRATEGIC PLAN
Mr. D. Edward Griffiths, Assistant General Manager, Pensions Division and Ms. Laura Guglielmo, Assistant
General Manager, Administrative Operations Division came before the Board. General Manager Perez and
Ms. Guglielmo gave an overview of the objectives and status of projects listed in the Strategic Plan.
10. APPROVAL OF INTEREST RATE TO BE CREDITED TO ACTIVE MEMBER ACCOUNTS AS OF
DECEMBER 3 1,2008
The Board Report was approved as submitted.
RESOLUTION 09084
Commissioner Carter moved that the Board direct the General Manager to credit the interest rate of 1.27% to
the active member accounts as of December 31, 2008, which motion was seconded by Commissioner
Contreras-Sweet and approved by the following vote: ayes, Commissioners Aliano, Broidy, Carter, ContrerasSweet, Juarez, Means, von Voigt and President Harrigan -8; nays, none.
12. GENERAL MANAGER'S REPORT
A. Benefits actions approved by General Manager on January 15,2009
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 on
January 15,2009.
DISCONTINUED PENSIONS - TIER 1 - 3
Morrie Henkin
Marguerite Williams
Dorothy L. Belle
Police Disability
Fire Widow
Police Widow
Retired:
Retired:
Retired:
04-0 1-59
12-14-92
07- 10-95
Died:
Died:
Died:
10-02-08
10-03-08
12-12-08
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 5
DISCONTINUED PENSIONS - TIER 2 - 15
Robert J. Coffman
J. S. Delaney
Otis F. Kirkman
Elmer G. Miller
Larry G. Miller
Delbert H. Winter
Robert L. Ashworth
Ernest F. Klapproth
Dean R. Warner
Earl S. Gerrard
Fred Riscen
Bette L. Benko
Lorraine L. Frashure
Judith C. Miller
Syka J. Pickerel
Retired:
Retired:
Retired:
Retired:
Retired:
Retired
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Fire Service
Fire Service
Fire Service
Fire Service
Fire Service
Fire Service
Police Service
Police Service
Police Service
Fire Disability
Police Disability
Fire Widow
Fire Widow
Fire Widow
Fire Widow
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
DISCONTINUED FORMER SPOUSE PENSIONS - TIER 2 - 4
Carol A. Julian
Doris Tutor
Donna P. Klapproth
Jennifer Gerrard-Dogar
Fire Service
Fire Service
Police Service
Fire Disability
Retired:
Retired:
Retired:
Retired:
03-04-94
07-01-82
03-0 1-77
11-28-03
Member Died:
Member Died:
Member Died:
Member Died:
12- 1 1-08
10-17-08
12-10-08
10-06-08
SERVICE PENSIONS CORRECTION - POLICE - TIER 3 - 1
David U. Randall
Police Officer I11
Eff:
0 1-04-09
12 Years
40 Days
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2 - 4
Name
Deceased Member
Member's Class
Effective Date
Carmen S. Coffman
Carlee P. Kirkrnan
Donna M. Miller
Somkid Riscen
Robert J. Coffman
Otis F. Kirkman
Larry G. Miller
Fred Riscen
Fire Service
Fire Service
Fire Service
Police Disability
12-18-08
11-27-08
12-19-08
12-15-08
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 6
DECREASE SURVIVING SPOUSE'S PENSION - TIER 2 - 2
Decrease the pension payable to Elizabeth L. Dowling, Surviving Spouse of deceased Fire Captain I1
Thomas F. Dowling due to the attainment of age 18 by Erik F. Dowling, effective January 15. 2009.
There is one remaining minor.
Decrease the pension payable to Karen Rizzo, Surviving Spouse of deceased Police Detective
Lawrence M. Rivera due to the attainment of age 18 by Brien R. Rivera, effective January 24,2009.
There are no remaining minors.
PARTIAL PAYMENT OF PENSION - TIER 2 - 2
In accordance with the City Attorney's advice, a designated proportion of the community property
interest of the pension payable to Ronald L. Treutlein, Police Service Pensioner, is to be paid to his
former spouse Anna C. Treutlein effective January 1,2009.
In accordance with the City Attorney's advice, a designated proportion of the community property
interest of the pension payable to Rhett B. Austin, Police Service Pensioner, is to be paid to his
former spouse Lisa M. Austin-McClintock effective January 25,2009. Ms. Austin-McClintock will
receive cost of living increases.
PARTIAL PAYMENT OF PENSION - TIER 5 - 1
In accordance with the City Attorney's advice, a designated proportion of the community property
interest of the pension payable to Jerome L. Pirro, Police Service Pensioner, is to be paid to his
former spouse Virginia Pirro, effective January 1,2009. Ms Pirro will receive cost of living
increases.
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 Gordon G. Hagge, Police Service Pensioner that was being
withheld for his former spouse Laura Hagge, since April 27,2008 is now to be released effective
January 1,2009. Ms. Hagge will receive cost of living increases.
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Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 8
Police
Richard A. Beach
Michael D. Depasquale
John D. Fletcher
Paula J. Garcia
William F. Holcomb
Richard J. Hooper
Ronald Y. Ito
Brent R. Josephson
Joseph A. Linares
Jimmy L. Love
William J. Maarschalk
Michael C. Maloy
Michael A. Nolan
John T. Snee
Jerry C. Szymanski
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SURVIVING SPOUSE APPLICATION - TIER 5 - 2
Type:
Name
Rank
% Rate
Effective Date:
Laura A. Chao
(Rich D. Mathias)
Police Officer I11
NSC w/o Prejudice:
30%
10/25/2008
Tracey J. Dunn
(William A. Dunn)
FirefighterIPara
NSC w/o Prejudice:
30%
With 1 Minor and 1
Surviving Child
11/22/2008
PENSION GRANTED - DISABILITY - TIER 5 - 1, December 18,2008
Effective
Name
William R. Paxson
Years
Days
Date
20
71
12-18-08
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 9
General Manager Perez reported on the following:
1. The McCauley initiative deals with taking back benefits from current active employees or retired
employees. General Manager Perez stated he has a report from the California Legislative Analyst Office to
distribute to the Board. The Board discussed the status of the initiative. General Manager Perez will keep
the Board apprised on the matter.
2. The Budget & Finance Committee will have meetings at various locations in the City. Different
departments have been invited. General Manager Perez will attend to answer questions from the public on
status of Fund.
3. Councilmember Alarcon made a motion asking that the City a conduct study on the possibility of the
Pension Funds divesting from banks that are not helping home owners in foreclosure problems. General
Manager Perez stated he was not asked to respond but is informing the Board on the matter.
4. The LACERS Board is hosting a Retreat on Feb. 10 and 11. The LAFPP Board Members are invited.
President Harrigan asked that the Retreat information be sent to the Board Members.
13. CONSIDERATION OF FUTURE AGENDA ITEMS
Commissioner Carter requested the status of securities lending and how much has been lost with Northern
Trust. Commissioner Carter also referred Real Estate Fund Concierge Opportunity Fund.
14. PUBLIC COMMENTS
Ms. Elsa Moy, commented on the educational retreat and strategy indicating that DROP participants should
have choices with specific guaranteed rates.
Commissioner Aliano recommended the Vision Insights & Perspectives Conference, hosted by Institutional
Real Estate, Inc., to be listed on the Recommended List of Seminars.
15. CONSENT ITEMS
A. Approval of Travel
1) APPROVAL OF TRAVEL AUTHORITY - CALAPRS - PRINCIPLES OF PENSION
MANAGEMENT FOR TRUSTEES -MARCH 24-27,2009, PAL0 ALTO, CA
B. Approval of Minutes
1)
Minutes of the Special Board Meeting of December 9,2008.
Commissioner Carter moved that the Board approve the consent items, which was seconded by Commissioner
Aliano and approved by the following vote: ayes, Commissioners: Aliano, Broidy, Carter, Contreras-Sweet,
Juarez, Means, von Voigt and President Harrigan - 8; nays, none.
Minutes of the Board of Fire and Police Pension Commissioners
February 5,2009
Page 10
11. CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9: TO CONSIDER
SETTLEMENT IN MITCHELL GROBESON V. BOARD OF PENSION COMMISSIONERS FOR THE
CITY OF LOS ANGELES, CASE NO. BS 049 282 AND ACTION TO RECONSIDER DISABILITY
PENSION APPLICATION
President Harrigan reported that the Board met in closed session to confer with the City Attorney regarding the
existing litigation.
16. DISABILITY CASES
DISABILITY CLAIM - DEPENDENT CHILD - TIER 5 - I
Elaine R. Harrison, Conservator of Aaron M. Harrison
Dependent Child of David J. Harrison
(p)
Detective 111 (Deceased)
As recommended by staff and concurred in by the applicant, Dependent Child status and benefits granted.
Motion made by Commissioner Broidy, seconded by Commissioner Aliano and adopted by the following vote:
ayes, Commissioners Aliano, Broidy, Carter, Contreras-Sweet, Juarez, Means, von Voigt, and President
Harrigan - 8; nays, none. Mr. Harrison was not present nor was his conservator, Mrs. Elaine Harrison.
The meeting was adjourned at 11:20 a.m.
Preside