public school retirement system
of the city of st. louis
board of trustees
regular monthly meeting
october 23, 2002
I. ROLL CALL AND ANNOUNCEMENT OF A QUORUM
The October meeting of the Board of Trustees of the
Public School Retirement System of the City of
St. Louis was called to order at approximately 4:35 p.m., Monday, October 23,
2002, in the Retirement System Office.
The presiding officer was John Miriani, Chair.
Present for the meeting were
Joseph Clark, Amy Collins, Norbert Eisele, Mary Franklin, Helen Lynch,
John Mahoney, Paulette McKinney, John Miriani, William Purdy, Lois Jean Turner,
Jeff Hartnett, Jim Rubie and Gail Lakin.
A quorum was present.
Marlene Davis was absent.
II. APPROVAL OF MINUTES OF LAST MEETING
Lois Jean
Turner challenged the minutes of the meeting of April 15, 2002. John Miriani said he had reviewed the
document Lois Jean distributed at the meeting of September 16, 2002 regarding
the minutes of the Board of Trustees Meeting of April 15, 2002. John said he did not believe Lois Jean's
challenge had merit and ruled against her challenge. Lois Jean Turner appealed the ruling of the chair. Following discussion among the trustees
regarding the disposition of Lois Jean's challenge to the April 15, 2002
minutes, and following some confusion about the matter on which a vote was to
be taken, a roll call vote was conducted on the question to uphold the ruling
of the chair that Lois Jean Turner's challenge to the minutes of the Board of
Trustees Meeting of April 15, 2002 was without merit.
Joseph Clark No Amy
Collins Yes Norbert Eisele Yes
Mary Franklin No Helen
Lynch Yes John Mahoney Yes
Paulette McKinney No John
Miriani Yes William Purdy Yes
Lois Jean Turner No
With six yes votes, the ruling of the
chair was upheld.
Helen Lynch made a motion, seconded by
Norbert Eisele, to approve the minutes of the Board of Trustees Meeting of
April 15, 2002 as read. A roll call
vote was taken.
Joseph Clark No Amy
Collins Yes Norbert Eisele Yes
Mary Franklin No Helen
Lynch Yes John Mahoney Yes
Paulette McKinney No John
Miriani Yes William Purdy Yes
Lois Jean Turner No
With six yes
votes, motion passed.
Lois
Jean Turner challenged minutes of the Board of Trustee Meetings of May 20, 2002
and September 16, 2002 because of inaccuracies and omissions. John Miriani indicated that in the interest
of moving the agenda, he was proceeding to the next item of business. He asked Gail Lakin to present the challenged
minutes again at the November meeting of the Board of Trustees. John told Lois Jean that if she wanted to
renew her challenges at the November Meeting, she should present specific
corrections for consideration.
III.
READING OF
COMMUNICATIONS TO THE BOARD OF TRUSTEES
Gail Lakin
distributed the attached communication from Lois Jean Turner regarding a
telephone message she received from John Miriani. Following discussion between Lois Jean Turner and John Miriani
regarding whether or not her communication would be read aloud and discussed,
John Miriani ruled that the reading and discussion of the communication were
out of order and proceeded to the next agenda item on the Order of Business.
IV.
PRESENTATIONS
BY INTERESTED PARTIES
David Learman,
a retired member, presented the attached questions concerning the Retirement
System's investment managers and brokers used by the managers to execute
securities trades. Gail Lakin said she
would respond to Mr. Learman's questions in writing.
V.
CONSENT
AGENDA
The items on
the Consent Agenda were addressed separately.
Helen Lynch
made a motion, seconded by Norbert Eisele, to approve the attached list of
retirements and benefits. By voice
vote, the motion passed.
Helen Lynch
made a motion, seconded by Norbert Eisele, to approve the attached refunds and
bills paid in September, 2002. By voice
vote, the motion passed.
Lois Jean
Turner said she wanted to discuss the advances that had been issued to trustees
who attended the National Council on Teacher Retirement (NCTR) annual
conference; however, because a vote had already been taken to approve the
refunds and bills, John Miriani ruled discussion out of order.
VI.
REPORT OF THE
CHAIR
John Miriani
said that he was suspending the Ad Hoc Rules and Regulations Committee because
the committee had not met and because procedures for recommending changes to
the Retirement System's Rules and Regulations were specifically provided in the
Rules and Regulations.
VII.
REPORT OF THE
EXECUTIVE DIRECTOR
Gail Lakin distributed the attached
proposal for implementing the data related aspect of a comprehensive disaster
recovery plan currently in development.
Gail explained that, following extensive analysis of several options for
securing Retirement System data, the attached proposal had been developed
jointly by Retirement System staff and AIS, the Retirement System's technology
consultants. Gail indicated that she
would be presenting the proposal with the annual operating budget
recommendation and would arrange to have an AIS representative present at the
Budget Committee Meeting to address technical questions. John Mahoney asked Gail to include Lonnie
Caldwell, the Retirement System's Technology Director, and Peter McGehee of St.
Louis Public Schools in that meeting.
VIII. REPORT OF THE INVESTMENT CONSULTANT
No report.
IX. REPORT OF THE ACTUARY
Jim Rubie said he would include his report
under the report of the Benefits Committee.
X. REPORTS OF COMMITTEES
Benefits
Committee
Joseph Clark, Chair of the Benefits
Committee, reported that the Benefits Committee met on October 21, 2002, minutes
attached, to discuss group health insurance renewals and actuarial cost method
recommendations from the Retirement System's actuary.
Joe reported that the Benefits Committee
had unanimously voted to recommend approval of staff recommendations provided
in the attached briefing paper. Lois
Jean Turner seconded the committee recommendation. A roll call vote was taken.
Joseph Clark Yes Amy
Collins Yes Norbert Eisele Yes
Mary Franklin Yes Helen
Lynch Yes John Mahoney Yes
Paulette McKinney Yes John
Miriani Yes William Purdy Yes
Lois Jean Turner Yes
With ten yes
votes, motion passed.
At the request of Paulette McKinney,
Joseph Clark made a separate motion, seconded by Mary Franklin, to affirm that
the Retirement System would continue its current rates of subsidy towards
Retirement System medical, dental and vision insurance plans on behalf of
members enrolling in those plans. A
roll call vote was taken.
Joseph Clark Yes Amy
Collins Yes Norbert Eisele Yes
Mary Franklin Yes Helen
Lynch Yes John Mahoney Yes
Paulette McKinney Yes John
Miriani Yes William Purdy Yes
Lois Jean Turner Yes
With ten yes
votes, motion passed.
Joseph Clark reported that the trustees who
attended the Benefits Committee Meeting engaged in detailed discussion with the
Retirement System's actuary, Jim Rubie, regarding his recommendations set forth
on the briefing titled Actuarial Cost Method.
Joseph Clark brought forward the unanimously approved Benefits Committee
recommendation to accept Jim Rubie's recommendations. John Mahoney seconded the committee recommendation.
Following Jim Rubie's summary explanation and
his response to several trustee questions, a roll call vote was taken.
Joseph Clark Yes Amy
Collins Yes Norbert Eisele Yes
Mary Franklin Yes Helen
Lynch Yes John Mahoney Yes
Paulette McKinney Yes John
Miriani Yes William Purdy Yes
Lois Jean Turner Yes
With ten yes votes, motion passed.
Investment
Committee
Helen Lynch, Chair of the Investment
Committee, reported on the Investment Committee Meeting of
October 17, 2002, minutes attached. She
indicated that the Investment Committee had no recommendations for Board
action.
Personnel
& Professional Committee
Amy Collins, Chair of the Personnel &
Professional Committee, indicated that the next item on the agenda for the
Personnel and Professional Committee was to conduct an evaluation of the
Retirement System's Investment Consulting Firm. Amy advised the trustees that she would be scheduling a committee
meeting for that purpose within the next several months.
Budget
Committee
No report; however, Gail Lakin reported that
she had met with Marlene Davis, Chair of the Budget Committee, to evaluate the
draft calendar year 2003 operating budget.
Gail said she would contact Marlene to schedule a Budget Committee Meeting
during November.
XI.
UNFINISHED BUSINESS
Reciprocity Rule. The attached Reciprocity Rule, which was introduced and discussed
at the Board of Trustees Meeting of September 16, 2002, was presented for
approval. Helen Lynch made a motion,
seconded by
Mary Franklin, to approve the Reciprocity Rule. A roll call vote was taken.
Joseph Clark Yes Amy
Collins Yes Norbert Eisele Yes
Mary Franklin Yes Helen
Lynch Yes John Mahoney Yes
Paulette McKinney Yes John
Miriani Yes William Purdy Yes
Lois Jean Turner Absent
With nine yes votes, motion passed.
Investment Policy and Guidelines. The attached changes to the Investment Policy and Guidelines,
which were introduced and discussed at the Board of Trustees Meeting of
September 16, 2002, were presented for approval. Helen Lynch made a motion, seconded by John Mahoney, to approve
the recommended changes to the Investment Policy and Guidelines. A roll call vote was taken.
Joseph Clark Yes Amy
Collins Yes Norbert Eisele Yes
Mary Franklin Yes Helen
Lynch Yes John Mahoney Yes
Paulette McKinney Yes John
Miriani Yes William Purdy Yes
Lois Jean Turner Yes
With ten yes votes, motion passed.
XII. NEW BUSINESS
Lois Jean Turner referenced her memorandum of
May 20, 2002, wherein she suggested attendance of the Investment Consultant at
"monthly membership meetings".
Lois Jean Turner made a motion, seconded by Paulette McKinney, that the
Investment Consultant, Doris Ewing, would attend monthly Board of Trustee
Meetings.
Following trustee discussion about the
frequency of the Investment Consultant's attendance at Board of Trustee
Meetings, the additional travel expense that would result from attendance at
two monthly meetings and the possibility of teleconference attendance, with the
consent of Lois Jean and Paulette, the original motion was amended to read that
the Investment Consultant, Doris Ewing, would attend Board of Trustee Meetings,
in person or by teleconference, and deliver quarterly reports. A roll call vote was taken.
Joseph Clark No Amy
Collins No Norbert Eisele No
Mary Franklin No Helen
Lynch No John Mahoney No
Paulette McKinney Yes John
Miriani No William Purdy No
Lois Jean Turner No
With one yes vote, motion failed.
Joseph Clark made a motion,
seconded by Mary Franklin, that the Investment Consultant will communicate in
person or by teleconference on a quarterly basis to share quarterly report
information.
Joseph Clark Yes Amy
Collins Yes Norbert Eisele No
Mary Franklin Yes Helen
Lynch No John Mahoney Yes
Paulette McKinney Yes John
Miriani Pass William Purdy Yes
Lois Jean Turner Yes
With seven yes votes, motion passed.
XIII. REPORT OF THE ATTORNEY
Jeff Hartnett reported that, at the request
of Lois Jean Turner, Chair of the Ad Hoc Rules and Regulations Committee, he
had reviewed his earlier opinion wherein he advised the Board of Trustees that
DROP participants are eligible to run for "active trustee"
positions. Jeff distributed the
attached memorandum dated October 23, 2002.
Jeff re-affirmed his previous opinion that DROP participants are
"active members" for the purposes of R.S.Mo. §169.450.1(2).
XIV. ADJOURNMENT
The meeting adjourned at approximately 6:45
p.m.
attachments
Fax from Lois Jean Turner Dated October 21, 2002
Questions from Retired Member, David Learman
Retirements and Benefits (September, 2002)
Refunds and Bills Paid (September, 2002)
AIS Disaster Recovery Proposal
Minutes of the Benefits Committee Meeting of October
21, 2002
Minutes of the Investment Committee Meeting of
October 17, 2002
Proposed New Reciprocity Rule
Proposed Amendments to Chapter A. Rule XIV -
Investment Policy
Proposed Amendments to the Investment Guidelines
Memorandum from Jeff Hartnett Dated October 23, 2002