public school retirement system

of the city of st. louis

board of trustees

regular monthly meeting

april 15, 2002

 

 

    I.      ROLL CALL AND ANNOUNCEMENT OF A QUORUM

 

The April meeting of the Board of Trustees of the Public School Retirement System of the City of St. Louis was called to order at approximately 4:30 p.m., Monday, April 15, 2002, in the Retirement Office.  The presiding officer was John Miriani, Chair.

 

Present for the meeting were Joseph Clark, Amy Collins, Norbert Eisele, Mary Franklin, John Mahoney,
John Miriani, William Purdy, Lois Jean Turner, John Goffstein, Jim Rubie and Gail Lakin.  A quorum was present.

 

Helen Lynch arrived at 5:00 p.m.  Paulette McKinney arrived at 5:10 p.m.  Marlene Davis was absent.

 

William Purdy asked John Miriani if he would entertain a motion regarding attendance at the New England Pension Consultants (NEPC) Annual Client Meeting.  John asked Bill to reserve his motion until later in the meeting.

 

  II.           APPROVAL OF MINUTES OF LAST MEETING

 

William Purdy made a motion, seconded by Mary Franklin, to approve the minutes of the meeting of the Board of Trustees conducted on December 17, 2001.  Joseph Clark challenged the accuracy of the minutes but was not prepared to discuss his concerns.  John Miriani directed that approval of the minutes of the Board of Trustees meeting of December 17, 2001 would be postponed to the next meeting to give Mr. Clark an opportunity to express his points of concern.

 

William Purdy made a motion, seconded by Amy Collins, to approve the minutes of the Special Meeting of the Board of Trustees conducted on January 16, 2002.  Lois Jean Turner challenged the accuracy of the minutes.

 

John Miriani asked Joseph Clark if he intended to challenge the accuracy of the remaining minutes listed on the agenda for approval.  Joseph Clark said he planned to challenge the accuracy of all but the minutes of the Special Meeting of the Board of Trustees of January 16, 2002.

 

John Miriani suggested postponing the approval of all of the minutes listed on the agenda and moving on to the next agenda item.  Hearing no objection to his suggestion, John Miriani asked Gail Lakin if there were any communications to the Board of Trustees.

 

III.      READING OF COMMUNICATIONS TO THE BOARD OF TRUSTEES

 

Gail Lakin distributed the attached letter from retired member, Peggy Parker, inquiring about cost of living adjustments.  John Miriani asked Gail Lakin to respond to Ms. Parker's letter on behalf of the Board of Trustees.

 

William Purdy referenced the agenda for the NEPC Client Conference, copy attached, that had been distributed to all trustees and made a motion, seconded by Lois Jean Turner, that the Retirement System pay eligible expenses of trustees wishing to attend.  A roll call vote was taken.

Joseph Clark       Yes              Amy Collins           Yes            Norbert Eisele      Yes

Mary Franklin     Yes              John Mahoney       Yes            John Miriani       Abstained

William Purdy      Yes              Lois Jean Turner     Yes

 

With seven yes votes, motion passed.

 

Lois Jean Turner made a motion, seconded by Joseph Clark, that the Retirement System pay eligible expenses for her attendance at the pension workshop that was being conducted in conjunction with the American Federation of Teachers (AFT) Convention in July.  Lois Jean requested expenses for July 13th through July 16th.

 

Helen Lynch arrived.

 

Amy Collins made a motion, seconded by Norbert Eisele, to postpone a vote on Lois Jean's motion to the next meeting in order to give Lois Jean an opportunity to share the agenda for the workshop with the other trustees.  A roll call vote was taken.

 

Joseph Clark       No               Amy Collins           Yes            Norbert Eisele      Yes

Mary Franklin     No               Helen Lynch          No            John Mahoney     Yes

John Miriani       Abstained       William Purdy        No            Lois Jean Turner  No

 

With three yes votes, motion failed.

 

William Purdy made a motion, seconded by Lois Jean, to table a vote on Lois Jean's motion until later in the meeting so that one of the Retirement System staff could retrieve a copy of the agenda via the internet.  A voice vote was taken and passed.

 

Paulette McKinney arrived.

 

IV.      PRESENTATIONS BY INTERESTED PARTIES

 

Henry Hampel, a retired member, presented the attached question asking if a law existed that would require the state to pay benefits to retired members if the Retirement System was unable to meet the obligations. 
John Miriani advised Mr. Hampel that Gail Lakin would respond to his inquiry in writing.

 

  V.      CONSENT AGENDA

 

The items on the Consent Agenda were addressed separately.

 

Helen Lynch made a motion, seconded by Lois Jean Turner, to approve the attached list of retirements and benefits through March 1, 2002.  A voice vote was taken.  Motion carried unanimously.

 

Lois Jean Turner made a motion, seconded by John Mahoney, to approve the attached refunds and bills paid in February and March, 2002.  A voice vote was taken.  Motion carried unanimously.

 

VI.      REPORT OF THE CHAIR

 

No report.

 


VII.      REPORT OF THE EXECUTIVE DIRECTOR

 

Gail Lakin advised that the Board of Trustees meeting scheduled for November 18, 2002 would conflict with a Monday Night Rams' Football Game.  She asked if the Board wanted to re-schedule its meeting.  By consensus, the Board decided to move its meeting to November 25, 2002.

 

VIII.      REPORT OF THE INVESTMENT CONSULTANT

 

No report.

 

IX.      REPORT OF THE ACTUARY

 

No report.

 

  X.      REPORTS OF COMMITTEES

 

Benefits Committee

 

Joseph Clark had no report, but advised that he would schedule a meeting in the month of May.

 

Lois Jean Turner made a motion, seconded by Mary Franklin, to take her earlier motion from the table.  By voice vote, motion passed.

 

Lois Jean Turner distributed the attached agenda for the AFT Convention and reiterated her earlier motion that the Board grant approval for Lois Jean Turner to attend the Biennial Convention of the American Federation of Teachers in Las Vegas from July 13 – 16, 2002 with all attendant expenses that prevail.  Following extended discussion, John Mahoney made a motion, seconded by Helen Lynch, to move the motion.  A roll call vote was taken.

 

Joseph Clark         Yes            Amy Collins         No               Norbert Eisele      No

Mary Franklin        Yes            Helen Lynch        No               John Mahoney     Abstained

Paulette McKinney   Yes            John Miriani       Abstained       William Purdy      Yes

Lois Jean Turner     Yes

 

With five yes votes, motion failed.

 

Personnel/Professional Committee

 

Amy Collins reported that two recommendations resulted from the Committee Meeting of April 11, 2002, minutes attached.

 

·                                           The first was that the Retirement System would issue a Request for Proposals (RFP) for actuarial services and, after the actuarial services decision had been finalized, would issue an RFP for investment consulting services.  Amy Collins made a motion, seconded by Mary Franklin, that the Board accept the Committee recommendation.  By voice vote, motion passed.

 

·                                           The second was that the Retirement System's legal counsel would review the contracts for actuarial and investment consulting services.  Amy Collins made a motion, seconded by Norbert Eisele, that the Board accept the Committee recommendation.  By voice vote, motion passed.

 

Investment Committee

 

Helen Lynch distributed and reported on the attached correspondence from Doris Ewing regarding liquidation of the South Africa Fund investment, the Crisken REIT investment and the Asset-Liability Study.

 

Ad Hoc Rules and Regulations Committee

 

Lois Jean Turner had no report.  John Miriani advised that he was suspending the Ad Hoc Rules and Regulations Committee until it was needed again.

 

XI.      UNFINISHED BUSINESS

 

None.

 

XII.      NEW BUSINESS

 

John Miriani requested that the Personnel and Professional Committee evaluate the merit of adding two trustees to the Board specifically to include individuals with expertise in pension related issues.

 

Amy Collins and Helen Lynch distributed the attached proposal to amend Chapter A. Rule XI by eliminating Section 2.

 

Joseph Clark asked John Goffstein if the current Rules required that meetings of the Committees of the Board of Trustees be tape recorded.  John Goffstein said he did not believe the current Rules imposed such a requirement.  Joseph Clark asked John Goffstein to provide his opinion in writing.

 

Following discussion about procedures for amending the Retirement System's Rules, Joseph Clark also asked John Goffstein if his firm would provide a legal interpretation of Rule XIII to advise when discussion and debate of a proposed Rule change could occur.  Specifically, Joseph Clark asked for a legal opinion regarding whether additional trustee discussion could take place at the Board of Trustees meeting when the proposed Rule change was presented for a "second reading" and vote.

 

Regarding the National Council on Teacher Retirement Trustee Workshop, to which attendance will limited to two trustees per retirement system, Norbert Eisele made a motion, seconded by Amy Collins, that the names of those trustees who wished to attend be submitted for a "lottery" to determine which trustees could attend and which would be placed on a waiting list for available openings.  A roll call vote was taken.

 

Joseph Clark         No          Amy Collins             Yes            Norbert Eisele      Yes

Helen Lynch          Yes          Paulette McKinney     Yes            John Miriani       Abstained

Lois Jean Turner     No

 

With four yes votes, motion failed.

 

XIII.      REPORT OF THE ATTORNEY

 

No report.

XIV.      ADJOURNMENT

 

The meeting adjourned at approximately 7:10 p.m.

 

attachments

 

Letter from Peggy Parker Dated March 7, 2002

NEPC Annual Client Conference Agenda

Presentation from Henry Hampel

Retirements and Benefits through March 1, 2002

Bills Paid in February and March, 2002

Information Regarding the AFT Convention

Minutes of the Personnel and Professional Committee Meeting of April 11, 2002

Letter from Doris Ewing to Sam Folin Dated April 5, 2002

Memorandum from Doris Ewing Dated April 15, 2002 – Crisken REIT

Memorandum from Doris Ewing Dated April 15, 2002 – Asset-Liability Study

Proposed Amendment to Chapter A. Rule XI