PUBLIC EMPLOYEES RETIREMENT BOARD EDUCATION SESSION AND MEETING MINUTES FOR Tuesday, April 17 and Wednesday, April 18, 2007

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1 PUBLIC EMPLOYEES RETIREMENT BOARD EDUCATION SESSION AND MEETING MINUTES FOR Tuesday, April 17 and Wednesday, April 18, 2007 The agenda for this meeting was mailed to every public employer, the news media, and other groups and individuals as requested. The Education Session of the Public Employees Retirement Board was called to order by Chairman Silvestri at 3:00 p.m., April 17, 2007, in the PERS Board Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Susan DeFrancesco, Elizabeth Fretwell, Purisimo Hernandez, David Kallas, George Stevens, and Warren Wish. Members absent: None. I. ADMINISTRATION April 17, 2007 Board Education Session A. Staff reviewed PERS actuarial assumptions. II. INVESTMENTS A. Staff reviewed PERS manager search process. III. PUBLIC COMMENT There were no public comments. IV. RECESS Chairman Silvestri recessed the meeting at 4:35 p.m. April 18, 2007 Board Meeting The Board meeting of the Public Employees Retirement Board was called to order by Chairman Silvestri at 8:00 a.m., April 18, 2007, in the PERS Board Room, 693 West Nye Lane, Carson City. Members present: Charles Silvestri, Susan DeFrancesco, Elizabeth Fretwell, Purisimo Hernandez, David Kallas, George Stevens and Warren Wish. Members absent: None. I. DISABILITIES A. Elizabeth Fretwell disclosed that Jacqulin Botosanu, Jessie Ornelas, and Hector Pimentel are City of Las Vegas employees. On motion of Elizabeth Fretwell, the Board voted unanimously of those present to: 1. Approve permanent and total disability retirement for: Kimberly Anderson, Thelma Anderson, Robert Andrews, Jacqulin Botosanu, Charsey Bratton, Louis Bredice, Lori Brown, Jeanne Bush, Walter

2 April 18, 2007 Page 2 Candelaria, Kristine Chubb, Robert Cordero, Elizabeth Davis, Deborah Jennings, Catherine Johnson, William Kesgen, Peter Marra, Valerie Massie, Leo McBride, Jessie Ornelas, Michael Ransom, Joe Rodriguez, Mary Stafford-Mercer, and Marsha Williams. 2. Approve reemployment requests by disability recipients: Victor Brown, Diane Coleman, Annette Herrera, Wade Penegor, Hector Pimental, Barbara Tagge, Mary Warren, and Lori Yazzie. In a separate motion by Elizabeth Fretwell the Board voted 6-yeas and 1- abstention to approve permanent and total disability retirement for Louis Brignardello. David Kallas abstained from the vote due to his familiarity with Mr. Brignardello s situation. II. INVESTMENTS A. Bill Hackney and Brian Smith of Atlanta Capital Management presented an update on their active U.S. growth stock portfolio, provided an organizational overview, and shared their outlook for the equity markets. B. Staff reviewed PERS international stock structure and discussed enhanced index management. On motion of Elizabeth Fretwell, the Board voted unanimously to invite Goldman Sachs Asset Management, Pyramis Global Advisors, and Quantitative Management Associates to the Board s June 2007 meeting to interview for an international stock enhanced index mandate. C. There were no recommended changes to the Interim Investment Directives for the PERS, Legislators, or Judicial funds. III. BOARD A. Staff presented a Letter of Commendation to the Board for the Employees of PERS in honor of Public Service Recognition Week celebrated May 7-13, Chairman Silvestri read the Letter of Commendation to the staff and thanked them for their dedication and outstanding service to PERS members and beneficiaries. On motion of David Kallas, the Board voted unanimously to approve the Letter of Commendation to the Employees of the Public Employees Retirement System in honor of Public Service Recognition Week. B. Staff reported that the selected candidate for the Administrative Analyst position had accepted another employment opportunity. C. On motion of Elizabeth Fretwell, the Board voted unanimously to approve the minutes of the Retirement Board education session and meeting held March 20 and 21, 2007, as submitted. D. There were no recommended changes to the Retirement Board meeting dates.

3 April 18, 2007 Page 3 E. There were no recommended changes to the Retirement Board Education Curriculum Calendar. IV. ADMINISTRATION V. LEGISLATION A. Legislative Matters: 1. Assembly Bill 563 Revises provisions governing education and makes appropriations relating to education. On motion of Purisimo Hernandez, the Board voted unanimously to adopt a neutral position on Assembly Bill Assembly Bill 568 Revises provisions governing the compensation of teachers and other licensed educational personnel. On motion of Susan DeFrancesco, the Board voted unanimously to adopt a neutral position on Assembly Bill Assembly Bill 590 Revises provisions governing school employees working in at-risk schools. On motion of David Kallas, the Board voted unanimously to adopt a neutral position on Assembly Bill 590, as introduced. 4. Senate Bill 335 Enacts provisions to assist the Department of Health and Human Resources with the recruitment and retention of staff in rural Nevada. On motion of Elizabeth Fretwell, the Board voted unanimously to adopt a neutral position on Senate Bill 335 upon written confirmation from the Legislative Counsel Bureau codifying this bill in Chapter Senate Bill 457 Provides for the creation, administration and investment of a trust fund for the management of certain retirement benefits provided by a local government. Staff provided background information on SB 457 and discussed the adopted amendment to the bill. On motion of Elizabeth Fretwell, the Board voted 6-yeas and 1-no to support the adopted amendment to Senate Bill 457. David Kallas voted no. 6. Senate Bill 511 Makes various changes relating to state financial administration. On motion of Purisimo Hernandez, the Board voted unanimously to adopt a neutral position related to this bill in its amended form.

4 April 18, 2007 Page 4 B. Staff provided an update on Assembly Bills 85, 119, 167, 208, 257, 319, Assembly Joint Resolution 8, and Senate Bills 76,156, 183, and 287. C. Staff discussed various divestment topics including the Sudan and the Board s fiduciary responsibilities to the exclusive benefit of the members and beneficiaries of the fund. VI. RATIFICATION AGENDA On motion of Elizabeth Fretwell, the Retirement Board voted unanimously of those present to: A. Approve the Administrative Fund disbursements. B. Approve all personnel action since the last report. C. Retroactively approve out-of-state travel for the Assistant Investment Officer to attend the National Association of State Investment Professionals (NASIP) conference April 8-11, 2007, in Scottsdale, Arizona. D. Approve the First Amendment to Lease with Siefert Investments, for the office at 5820 South Eastern Avenue, Suite 220, Las Vegas, Nevada. E. Approve out-of-state travel for appropriate staff to attend the CEM Benchmarking World Pension Administration Peer Conference, May 14-16, 2007, in Chicago, Illinois. F. Approve out-of-state travel for appropriate Board members and staff to attend the National Conference on Public Employee Retirement Systems (NCPERS) annual conference May 19-24, 2007, in Honolulu, Hawaii. G. Approve a request for a change of PERS membership effective date for Coral Academy of Science from September 1, 2000, to August 28, David Kallas, Charles Silvestri and Warren Wish were not present for this vote. VII. DENIALS VIII. REPORTS IX. PUBLIC COMMENT A. Roger Maillard, President, AFSCE/Retiree Chapter, thanked the PERS staff for their hard work and remarkable service to all members and retirees. Mr. Maillard also stated his chapter supports whatever the Board s decisions are regarding divestment and health trust funds.

5 April 18, 2007 Page 5 Danny Coyle, President, AFSCME/Retiree Chapter, also supports the Board s exclusive benefit rule and commended Dana Bilyeu, Executive Officer of PERS, on her presentation to the AFL/CIO legislative meeting last month. B. The Deputy Attorney General had nothing to report. C. Administrative report by Staff. Operations Officer: 1. The Operations Officer reported that the Senate Committee on Finance and the Assembly Committee on Ways and Means closed PERS budget on April 11, D. Questions and/or comments by members of the Retirement Board. Charles Silvestri: 1. Chairman Silvestri, on behalf of the Board thanked the PERS staff for their hard work, dedication, and efficiencies that make PERS a great organization. Mr. Silvestri also shared compliments to the staff that he received from the Governor and various legislative members. X. ADJOURNMENT Elizabeth Fretwell: 1. Ms. Fretwell requested staff research the cost of video teleconferencing equipment for the PERS office in Carson City. The meeting was adjourned by Vice-Chairwoman DeFrancesco at 11:20 a.m. The following is the time schedule for the meeting: On April 17, 2007, the Education Session was called to order at 3:00 p.m. by Chairman Silvestri and recessed at 4:35 p.m. The April 18, 2007, Board meeting was called to order at 8:00 a.m. Two breaks were taken at 9:00 a.m. and 10:15 a.m. for approximately five minutes each. The meeting was adjourned at 11:20 a.m.