MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF APRIL 15, 2010
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1 MINUTES OF THE BOARD OF FIRE AND POLICE PENSION COMMISSIONERS MEETING OF APRIL 15, 2010 The Board offire and Police Pension Commissioners ofthe City oflos Angeles met in Room 800,360 East Second Street, on Thursday, April 15, COMMISSIONERS PRESENT: DEPARTMENT OF FIRE AND POLlCE PENSIONS: CITY ATTORNEY'S OFFICE: COURT REPORTER: George V. Aliano, President Dean Hansell, Vice President Sam Diannitto Brenda Maull Wayne Moore Ruben Navarro Raul Perez Robert von Voigt Adlai Wertman Michael A. Perez, General Manager Laura Guglielmo, Assistant General Manager William Raggio, Assistant General Manager Tom Lopez, Chief Investment Officer Barbara Nobregas, Commission Executive Assistant Mike Wilkinson, Deputy City Attomey Mary Jo Curwen, Deputy City Attorney Diane L. Panicca, U.S. Legal Support President Aliano called the regular meeting to order at 9:06 a.m. All ofthe above-listed Commissioners were present at the start of the meeting with the exception of Commissioner Hansell, who arrived at 9: 15 a.m. 1. COMMUNICATIONS TO THE BOARD A. Miscellaneous correspondence from money managers, consultants, etc. - Received and Filed B. Monthly Report - Received and Filed 2. COMMITTEE REPORTS A. Benefits Committee
2 April 15, 2010 Page 2 Chair Aliano stated two Independent Fiduciary Services (IFS) Audit recommendations were marked "completed" and one will go forward at the next Committee meeting in August. The Segal Group gave a health reform presentation regarding the new health care bill. An update regarding the MOD negotiations with the various associations will be reported at the next Committee meeting. B. Governance Committee Chair Diannitto reported that staff will work on the IFS Audit recommendation issues in June or July. C. Audit Committee Chair Hansell had not arrived at the meeting; no report was given. D. Ad Hoc Space Planning Committee Chair Wertman had no updates to report. 3. PRESENTATION ON ASSET ALLOCATION BY KV. KUHNS Ms. Rebecca Gratsinger, Chief Executive Officer, and Mr. Jim Voytko, Chief Operating Officer from R.Y. Kuhns and Associates presented the asset allocation report and answered the Board's questions. Deputy City Attorney Mary Jo Curwen took the City Attorney chair at this time. 4. UPDATE ON IRAN AND POSSIBLE BOARD ACTION Mr. Tom Lopez, Chieflnvestment Officer, and Ms. Erika Tiedge, Investment Officer II, Investments Division presented the report. Ms. Tiedge reviewed severa] different options for the Board to consider regarding the adoption of a new Iran policy. Mr. Lopez addressed Commissioner Moore's concerns ifthe Board were to take adverse actions to the Federal law. General Manager Perez reported staff receives legislative alerts regarding changes to the Federal legislation. Ifthe Board is required to revisit the issue, staffwould bring the item to the Board. RESOLUTION Commissioner Wertman moved that the Board direct Staffto: Amend the Board Investment Policies to include as the Board's new Iran Policy, Option 3 in the board report.
3 April 15, 2010 Page 3 Utilize the Florida Small Business Administration (SBA) Iran list to identify companies subject to the Board's new Iran Policy and update the Board's Iran list as needed to be consistent with the Florida SBA Iran list. Notify LAFPP investment managers of the Board's new Iran Policy, which was seconded by Commissioner Navarro and approved by the following vote: ayes, Commissioners Diannitto, Hansell, Maull, Moore, Navarro, Perez, von Voigt, Wertman and President Aliano - 9; nays, none. 5. UPDATE ON SUDAN DIVESTMENT AND EXCLUSION POLICY AND POSSIBLE BOARD ACTION Mr. Tom Lopez and Ms. Erika Tiedge presented the repo11. Ms. Tiedge presented the recommendation to update the Sudan Divestment Policy to remain consistent with the University ofcalifomia Regents, and that the Board revise its Sudan Policy to be consistent with the newly implemented Iran Policy. RESOLUTION Commissioner Hansell moved that the Board direct Staff to: Revise the Board's Sudan Policy to be consistent with its new Iran Policy. Update the Board's list of companies subject to the revised Sudan Policy as needed to be consistent with the University of California Regents' Sudan list. Notify LAFPP's investment managers of the Board's revised Sudan Policy, which was seconded by Commissioner Diannitto and approved by the following vote: ayes, Commissioners Diannitto, Hansell, Maull, Moore, Navarro, Perez, von Voigt, Wertman and President Aliano - 9; nays, none. 6. ANNUAL COST OF LIVING ADJUSTMENTS TO PENSIONS AND POSSIBLE BOARD ACTION Mr. Joseph Salazar, Senior Management Analyst II, Retirement Services Section, Pensions Division was before the Board. Commissioner Diannitto moved that the Board: RESOLUTION Authorize all eligible pensions to be adjusted on July 1,2010 as follows: a. For members of Tiers 1, 2, 3 and 4 by 1.4%; and, b. For members oftier 5 and DROP by 1.4%; and that 0.50% be withdrawn and applied from eligible Tier 5 members' cost of living bank balance. 2. Take no action regarding a Discretionary Cost of Living Adjustment for eligible pensioners for Calendar Year 2011, which was seconded by Commissioner Navarro and approved by the following vote: ayes, Commissioners Diarmitto, Hansell, MaUll, Moore, Navarro, Perez, von Voigt, Wertman and President Aliano - 9; nays, none.
4 Page 4 7. QUARTERLY COMMISSIONERS' AND STAFF TRAVEL REPORT The Board took no action; the report was received and filed. 8. GENERAL MANAGER'S REPORT A. Benefits actions approved by General Manager on April 1,2010 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 April 1,2010. DISCONTINUED PENSIONS - TIER 1-2 Dorothy D. Ecord Fire Widow Retired: Died: Rose 1. Fisher Fire Widow Retired: Died: DISCONTINUED PENSIONS - TIER 2-16 Dofe] 1. Brunetti Fire Service Retired: Died: Christopher M. Irons, Jf. Fire Service Retired: Died: Leonard J. Rohm Fire Service Retired: Died: George R. Bennett Police Service Retired: Died: Donald G. Davidson Police Service Retired: Died: Richard C. Evans Police Service Retired: Died: Trinidad Gonzalez Police Service Retired: Died: Richard Tackaberry Police Service Retired: Died: Wesley A. Wallace Police Service Retired: Died: Robert J. Murphey Police Disability Retired: Died: Connie P. Acton Fire Widow Retired: Died: Gertrude A. Chemow Fire Widow Retired: Died: Lillian D. Dodge Fire Widow Retired: Died: Ruth M. Dehlmar Police Widow Retired: Died: Lois D. Ferguson Police Widow Retired: Died: Gwendolyn G. La Bare Police Widow Retired: Died:
5 Page 5 ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2-7 Name Deceased Member Member's Class Effective Date Judith E. Irons Christopher M. Irons, Jr. Fire Service Elisabeth E. Allebe Christopher D. Allebe Police Service Phyllis M. Bennett George R. Bennett Police Service Doris M. Evans Richard C. Evans Police Service Angelina L. Gonzalez Trinidad Gonzalez Police Service Marceline Wallace Wesley A. Wallace Police Service Robin J. Murphey Robert J. Murphey Police Disability SURVIVOR BENEFIT PURCHASE PROGRAM PARTICIPANTS - TIER 2-1 Member's Class Effective Date Survivor Benefit % James D. Gicking Police Service % 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 David C. Blacklock, Police Service Pensioner, is to be paid to his fonner spouse Esther Blacklock effective April 1, Ms. Blacklock will receive cost of living ll1creases. SERVICE PENSIONS - POLICE - TIER 5-1 Richard L. Davis Sergeant I Eff: Years 224 Days SERVICE PENSION/DROP - TIER 2-3 Fire Stephen C. Briggs Firefighter III Eff: Years 55 Days Sean K. Conway Fire Captain II Eff: Years 16 Days Michael Valas Firefighter III Eff: Years odays SERVICE PENSIONIDROP - TIER 5-27 Fire Gregory J. Acevedo Firefighter III Eff: Years 311 Days Randy W. Beaty Battalion Chief Eff: Years 202 Days Russell E. Bell Engineer Eff: Years 166 Days Roxarme V. Bercik Assistant Chief Eff: Years 76 Days
6 Page 6 SERVICE PENSION/DROP TIER continued Paul W. Clark Firefighter III Eff: Years 214 Days James T. DeLuca Apparatus Operator Eff: Years 307 Days David D. Dumler Engineer Eff: Years 76 Days Michael W. Gibson Engineer Eff: Years 81 Days Andrew M. Gutierrez Inspector II Eff: Years 140 Days Kathleen R. Hegwer Firefighter III Eff: Years 28 Days Ted E. Nonini Firefighter III Eff: Years 24 Days Bernard S. Salazar Fire Captain I Eff: 03-0 I Years 1 Days Wendell F. Smith Fire Captain II Eff: 03-0 I-I 0 26 Years 3 Days James W. Vels Fire Captain I Eff: Years 202 Days Police Joseph S. Anzallo Detective II Eff: Years 350 Days Joseph A. Bagwell Detective I Eff: Years 83 Days Gilbert M. Campos Police Officer II Eff: Years 143 Days Joseph Catanzaro Police Detective I Eff: Years 184 Days Charles H. Choe Detective II Eff: Years 6 Days Ileana I. Chiu Detective III Eff: Years 6 Days Ricardo T. Cruell Detective II Eff: Years 32 Days Michael R. Goldstein Police Officer II Eff: Years 320 Days Michael 1. Hansen Police Detective III Eff: Years 103 Days Kathryn L. Redd Henderson Police Detective II Eff: Years 129 Days Thomas W. Thornton Police Detective II Eff: Years 63 Days Leo Turner, Jr. Police Detective II Eff: Years 158 Days Thomas D. Ward Police Officer III Eff: Years 172 Days DISCONTINUE DROP TIER 5-1 CORRECTION Fire Sharyn 1. Buck Retired: Exit Close of: Correction to member's name: Add middle initial. B. Other business relating to Department operations General Manager Perez gave the following updates: 1. He introduced new staff: Ms. Asya Hickman, from the Personnel Department; Mr. James Pineda, from the Bureau of Public Works; Ms. Jenny Mach, from the Personnel Department; and Rick Deguchi,
7 Page 7 from the Controller's Department, who is the Departmental Audit Manager and will work closely with Audit Committee. 2. LACERS' Board will have a "bankruptcy" presentation by Mr. Harvey Leiderman on May 11 1h. He will give the Board notice of the date, time and the written presentation. 3. There is an article in the Los Angeles Times regarding the Airport Commission. The board president had a conflict voting on a concession item and advised the City Attorney late in the process. The City Attorney's decision referred the item to the Board of Referred Powers, comprised of a panel of five Councilmembers and chaired by Councilmember Tony Cardenas. He noted the LAFPP Board Members have asked great questions regarding potential conflicts and are ahead ofother boards in that area. Ms. Mary Jo Curwen asked Board Members to notify the City Attorney of potential conflicts in advance so that they may review the issue. General Manager Perez will give the Board more information regarding the Board of Referred Powers and their capability to hear LAFPP matters. President Aliano repolied: 1. The Institute for International Research is conducting a survey asking for Board volunteers to be surveyed. General Manager Perez stated the organization is asking for the Board's input to make the 19 th Annual Public Fund Boards Forum conference more valuable. Commissioner Navarro volunteered. 2. He reminded the Board about talking to the press. The General Manager Perez represents the Board so the Board will have one uniform voice. The General Manager is the spokesperson; it is stated in the Board Policy. General Manager Perez will send out the board policy to Board Members. 3. He asked that the Board Members not directly ask staff to do work. Direct the request to the General Manager. General Manager Perez clarified in the case ofdisability pensions, past practice has been for Board Members to call Mr. Chris Annala from the Disability Section - that is reasonable. 4. He noted recent newspaper articles on "bankruptcy." He submitted a response to the editorial and handed out copies to the Board. The Board discussed differences ofopinions and how to express them. Mary Jo Curvven, Deputy City Attorney suggested that the issue be discussed as a future agenda item. C, Marketing Cessation Information 9. CONSIDERATION OF FUTURE AGENDA ITEMS No items were referred.
8 Page PUBLIC COMMENTS Ms. Elsa Moy commented on the monthly report subtotals. General Manager Perez stated staffhas met with Ms. Moy on several occasions to explain the column totals in monthly report. Commissioner Wertman noted the Portfolio report contains a footnote pertaining to the rounding issue. 11. CONSENT ITEMS A. Approval of Minutes 1) Minutes ofthe Regular Board Meeting of December 9, 2009 B. Findings of Fact - Tier 2-1 1) Frank D. Wissman, Jr. Commissioner Diannitto moved that the Board approve the consent items, which was seconded by Commissioner Hansell and approved by the following vote: ayes, Commissioners Diannitto, Hansell, Maull, Moore, Navarro, Perez, von Voigt, Wertman and President Aliano - 9; nays, none. 12. DISABILITY CASES DISABILITY CLAIM - NEW - TIER 3-2 Sharon 1. Kroger (P) Sergeant I Service-connected disability pension is granted at 60% with no foreseeable purpose for review. Motion made by Commissioner Perez, seconded by Commissioner Navarro and adopted by the following vote: ayes, Commissioners Diannitto, Hansell, Maull, Moore, Navarro, Perez, Wertman and President Aliano - 8; nays, Conunissioner von Voigt - 1. Sergeant II Jose Mmtinez, Medical Liaison Section, Los Angeles Police Department testified regarding Sergeant Kroger. Sergeant Kroger was present and represented by her attorney, Thomas J. Wicke. Commissioner von Voigt recused himselffrom the case and left the boardroom for the day. Jeanne M. Harris (P) Sergeant II Nonservice-connected disability pension is granted at 50% with no foreseeable purpose for review. Motion made by Commissioner Hansell, seconded by Commissioner Moore and adopted by the following vote: ayes, Commissioners Diannitto, Hansell, Moore, Perez and Wertman - 5; nays, Commissioners Maull, Navarro and President Aliano - 3. (Original motion to grant a nonservice-connected disability pension at 50% made by
9 April 15, 2010 Page 9 Commissioner Hansell, seconded by Commissioner Moore failed by the following vote: ayes, Commissioners Hansell, Moore, Perez and Wertman - 4; nays, Commissioners Diannitto, Maull, NavalTa and President Aliano - 4. President Aliano passed the gavel to Vice President Hansell. Second motion to grant a serviceconnected disability pensions at 50% made by Commissioner Aliano, seconded by Commissioner Navarro failed by the following vote: ayes, Commissioners Aliano, Diannitto, Maull and Navarro - 4; nays, Commissioners Moore, Perez, Wertman and Vice President Hansell- 4. Vice President Hansell returned the gavel back to President Aliano.) Sergeant Hanis was present and represented by her attorney, Thomas J. Wicke. Meeting adjourned at 11 :43 p.m.
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