MS. D'ALESSANDRO: Borough President, Bronx?

Transcription

1 0 ATTENDEES: NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM BOARD OF TRUSTEES REGULAR BOARD MEETING held on Thursday, June, at Adams Street Brooklyn, New York CAROLYN WOLPERT, Chairperson, Trustee, Finance DIANE D'ALESSANDRO, NYCERS, Executive Director THADDEUS McTIGUE, Trustee, Comptroller's Office JACQUELINE SHERMAN, Trustee, Public Advocate's Office JASON OTANO, Trustee, Brooklyn BP's Office ALBERT RODRIGUEZ, Trustee, Bronx BP's Office HUGH WEINBERG, Trustee, Queens BP's Office JIMMY YAN, Trustee, Manhattan BP's Office JOHN ZACCONE, Trustee, Staten Island BP's Office OLIVER GRAY, Trustee, District Council MARY O'CONNELL, Trustee, District Council DENNIS DEAHN, Trustee, District Council PATRICIA STRYKER, Trustee, Int'l Brotherhood of Teamsters NANCY TRUE, Trustee, Int'l Brotherhood of Teamsters LARRY CARY, Trustee, Transport Worker's Union MARTHA ATES, NYCERS JOSEPH BOTTNER, M.D., NYCERS LINDA CHIARIELLO, NYCERS KAREN MAZZA, ESQ., NYCERS VIBHA HARISH, NYCERS OMETA KILLIEBREW, NYCERS SHERIF SOLIMAN, NYCERS DOMINIC WILLIAMS, Public Advocate's Office RICARDO MORALES, Comptroller's Office KEITH SNOW, Corporation Counsel ROBERT C. NORTH, JR., Actuary MICHAEL LOUGHRAN, Comptroller's Office LENNY SAPOZHOROV, Public Advocate's Office KOLBY LOFT, Public Advocate's Office TZING CHEN, Office of the Actuary JOHN GIBNEY, NYCOA FLORINA MALAKH, Queens Borough President's Office CHRIS DUNHAM, Corporation Counsel

2 0 P R O C E E D I N G S (Time noted: 0: a.m.) CHAIRPERSON WOLPERT: Call to order, please. Can we call the roll? MS. D'ALESSANDRO: Chair? CHAIRPERSON WOLPERT: Present. MS. D'ALESSANDRO: Comptroller's Office? MR. McTIGUE: Present. MS. D'ALESSANDRO: Public Advocate? MS. SHERMAN: Here. MS. D'ALESSANDRO: Borough President, Manhattan? MR. YAN: Present. MS. D'ALESSANDRO: Borough President, Brooklyn? MR. OTANO: Present. MS. D'ALESSANDRO: Borough President, Queens? MR. WEINBERG: Here. MS. D'ALESSANDRO: Borough President, Staten Island? MR. ZACCONE: Present. MS. D'ALESSANDRO: Borough President, Bronx? MR. RODRIGUEZ: Here. MS. D'ALESSANDRO: International Brotherhood

3 0 of Teamsters? MS. STRYKER: Here. MS. D'ALESSANDRO: Transit Workers? MR. CARY: Here. MS. D'ALESSANDRO: District Council? MR. GRAY: Here. MS. D'ALESSANDRO: We have a quorum. CHAIRPERSON WOLPERT: Part of our agenda is the approval of the minutes of the regular board meeting of May,. Do we have any comments or changes to the minutes? MS. D'ALESSANDRO: I believe Mr. North had some changes that he exhibited to us that were minor in nature, and that we would incorporate. CHAIRPERSON WOLPERT: If we have no other issues, can I have a motion to approve the minutes? MS. SHERMAN: Motion. CHAIRPERSON WOLPERT: Second? MR. ZACCONE: I'll second. CHAIRPERSON WOLPERT: All in favor, say "Aye." (A chorus of "Ayes.") All opposed? Any abstentions?

4 0 Minutes are approved. And then we have two additional items. The first item I'd like to add to the agenda is the question of whether the fund should release some names of retirees under FOIL. Whereas, do we have unanimous consent of the board to add that to the agenda? MS. STRYKER: No. CHAIRPERSON WOLPERT: Thank you. And now, I believe the Comptroller's Office had another issue they'd like to add. MR. McTIGUE: Thank you, Madam Chair. I believe all the trustees have in front of them a resolution drafted by our office regarding the disclosure of retiree information, as well as other initiatives related to disclosure and transparency. I believe that this resolution is in keeping with the spirit of the board and working with the Comptroller and promoting leadership and disclosure and transparency for the system. For example, the board currently webcast public sections of investment meetings, which was a historic occurrence. Working closely with the staff of the system, we are working to put more material related to the system and its effectivity online. For example, we

5 0 are working to create an online library. The resolution today before you is that the board established leadership in promoting transparency and positive governance for the system. We believe this continues the leadership that this board has shown, and would ask that the board consider the resolution today. CHAIRPERSON WOLPERT: And do we have unanimous consent to add that to the agenda? MR. CARY: With love and affection, no. MR. McTIGUE: Okay. CHAIRPERSON WOLPERT: Thank you. MR. McTIGUE: We just reserve the right at some time for it to perhaps be this considered on the agenda. CHAIRPERSON WOLPERT: Yes, on both issues, I believe. Now, we will move to the report by the executive director. MS. D'ALESSANDRO: Thank you, Madam Chair. One thing I'd like to call to your attention is that we have a copy of the fiscal 0 annual report now available. It is at your desk. MR. OTANO: I'd like to commend the cover artwork. It's beautiful. MS. D'ALESSANDRO: Brooklyn-centric. But

6 0 peruse at your convenience. So, the first item on the agenda is the Final Medical Review Distribution, an Overview. It's (a) in your packet. We have the medical board performance for the month of May; percent approved, percent denied. The Board of Trustees reviewed four cases, percent approved, percent denied. Final medical review, zero percent approved, 00 percent denied out of three cases. On a year-to-date through, medical board performance, percent approved, percent denied; Board of Trustees review, percent approved, percent denied. And final medical review, percent approved, percent denied. Any questions? The next item is (b) on your agenda. It is a resolution with respect to the Comptroller and investment authority for fiscal year. MR. McTIGUE: This is an annual resolution that is produced in conjunction with the system to provide the Comptroller's service fee, and as an advisor to prepare the coming fiscal year. We'd ask that the board move that this resolution take effect July st and run through June 0th of next year. There are no

7 0 changes from last year's resolution. CHAIRPERSON WOLPERT: Can we have a motion? MR. ZACCONE: Motion. CHAIRPERSON WOLPERT: Second? MR. RODRIGUEZ: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." (A chorus of "Ayes.") All opposed? Any abstentions? MR. McTIGUE: Thank you. The Comptroller thanks the board. MS. D'ALESSANDRO: That is Resolution Number. The next item on the agenda is (b), and that refers to the Comptroller's contracting authority for fiscal year. MR. McTIGUE: This is similar to the resolution, two more done in the past, same resolution as last year. You may recall that, consisting with this resolution, I think, back at the April meeting, we had a discussion of the fees that the system paid; and the presentation we gave provided color on some of the activities we've had with managing in terms of fees and what we thought about for the coming year.

8 0 We will also plan to bring that presentation to the board once we know what the fees are for the close of this fiscal year. So, we will provide the same presentation to the board once we know the fees, and that we'll give this year. CHAIRPERSON WOLPERT: Do we have motion to approve the resolution? MR. YAN: So moved. CHAIRPERSON WOLPERT: Second? MR. ZACCONE: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." (A chorus of "Ayes.") All opposed? Any abstentions? So moved. MR. McTIGUE: Thank you. CHAIRPERSON WOLPERT: You're welcome. MS. D'ALESSANDRO: Resolution Number. The next item on the agenda is a proposed resolution regarding executive director's executive and contracting authority for fiscal. CHAIRPERSON WOLPERT: Any discussion on this resolution? Do we have a motion?

9 MR. ZACCONE: So moved. CHAIRPERSON WOLPERT: Second? MR. RODRIGUEZ: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." 0 (A chorus of "Ayes.") All opposed? Any abstentions? So moved. MS. D'ALESSANDRO: That is Resolution Number. The next item on the agenda is a report on trustee's travel, that was requested by the International Brotherhood of Teamsters. Karen? MS. MAZZA: I was asked to look at the conferences that were attended by trustees in the last three years. So, you look at January 0, December 0. And these would be the conferences where we issued reimbursements. There are eight instances where trustees attended the Council of Institutional Investors. There are nine instances where they attended the Wharton School. One for Principles of Responsible Investment, PRI; one for International Foundation for Employee

10 0 0 Benefits, IFEBP; one for National Association of Security Professionals, NASP; one for the Northern Ireland Investment Conference; one to the Asian American Investment Managers Conference; one for Pension Fund Forum, and one for the Public Fund Round Table. CHAIRPERSON WOLPERT: Anything further on this issue? MS. STRYKER: I had brought up an issue several months ago in regard to the Council of Institutional Investors meeting in Washington, D.C. It is very inexpensive for the fund because it is Washington, D.C., and it's once a year and it's a very valuable conference. So, I thought for those people who came, particularly those people who would go to Wharton, which is a very intensive training session and others perhaps during the year, something else, there would be two. One is allowed -- all the same trustees. One trustee is here on this board to go to two conferences. And I thought if you were going to do such, that the trip to Council of Institutional Investors in which we are a member and pay a fee annually for that, should be apart from that. Looking at this, I don't know really from what is explained as now is any individual doing more than two a year. So, I can't

11 0 really say anything more on it, because I don't have that information. MR. ZACCONE: If I may, I think the two questions here, if I remember, is the number of events that the trustees could go to each year be reimbursed by the board for the expenses. And the second one was there is a proviso in our bylaws, I believe, that limits only two trustees to go to any one of them. And I think -- if I remember correctly, I don't know the wording on that, but your question was the ability of more than two trustees to go to the CII event. MS. STRYKER: Right. The second part of it. MR. ZACCONE: Yes. So, I think that was a question and then -- MS. STRYKER: I think we are members today. MR. ZACCONE: Correct. And I think Karen has been a check on the board to always -- at least to my understanding, I think that was to confirm the term on what cause to approve more than two people to a particular event just on a vote of the board. So, I think kind of that's where it was going. MS. STRYKER: Thank you for that. MS. MAZZA: The rule actually says that in Section, board members wish to attend a conference

12 0 follow a conference guideline resolution. And in my history here, there's only been maybe two or three times when a trustee had come to the board and asked for additional over the two that are permitted under the rule. So, two conferences a year per person; otherwise you have to come to the board for approval on three or four. And there's four, in the event that any more than four board members may wish to attend so that will be turned over conference guidelines. MR. CARY: Doesn't sound like this is a huge number. MR. RODRIGUEZ: But, Karen, one of the question I had with on average -- I was speculating that on average, where the trustees are attending much less than the two conferences a year. MS. MAZZA: Yes. CHAIRPERSON WOLPERT: So, am I correct to say it sounds like the issues that Ms. Stryker has brought up can probably be handled within the current rules; is that correct? MS. STRYKER: It appears that way, yes. MS. D'ALESSANDRO: The next item on the agenda is basically with respect to the Comptroller's transparency initiative. This is for your information.

13 0 So, I wanted to inform the board the Comptroller has made a request for certain items to be placed on their website. And they were all public documents. And some of the information already appears on our website, but there will be additional items that we will give to the Comptroller to be placed on their website, which the request included the calendar of the board and committee meetings, which already appeared on our website, which we'll give to the Comptroller. The comprehensive annual financial report already appears. The annual report already appears. The new items that will be displayed on the Comptroller's website include the board meeting agenda and the board meeting minutes. And I guess we would start with the minutes of this meeting. MR. McTIGUE: It goes with the public session minutes also. MS. D'ALESSANDRO: Yes, it's public session. MR. ZACCONE: Can I ask just before the minutes are turned over, that obviously you and your staff make sure that the only minutes are these that are for public session; and that the executive session appeared only -- these are obviously be excluded, which is confirmed before anything goes out, like the sensitive materials containing executive session and are

14 0 no way disclosed. MS. D'ALESSANDRO: Absolutely. In addition, we wouldn't authorize release of any minutes that haven't been approved by the board. MR. RODRIGUEZ: Let me ask this, Diane. Is there a process for amending minutes after we've actually approved them? Because I know from time to time, board members may not have a chance to review the minutes for corrections prior to them being approved. MS. D'ALESSANDRO: I don't think we ever had that circumstance raised. So, no, I guess we don't have a process. MR. ZACCONE: I believe under Roberts Rules that we would have to -- the motion would have to be made before the board and the information have to be forwarded to the board or have to adopt after it's been done. Assuming you voted to approve the bylaws. MR. CARY: And you would know that in the minutes of the meeting that we are discussing, that would be part of the business. MR. ZACCONE: So, there is a process. We just haven't availed ourselves of it. MR. McTIGUE: I just want to thank Diane and her staff. They met with the Comptroller's team; and as always, were extremely courteous and professional and we

15 0 worked well together. And I appreciate that. MS. D'ALESSANDRO: Likewise. MR. RODRIGUEZ: Are the plans to have an archive -- there's going to be an historical archive? MR. McTIGUE: Yes. And one of the things I might add, the shareholder resolutions that the board submitted on behalf of the board. Some of the historical people can go on and look for that information. But I think Diane's points are very well taken. There's nothing that we plan on putting upon this library, beginning July, that at some point other trustees haven't seen. The operating presumption is they're copied from the annual reports or the minutes that have been approved by the board. So, they're all things that are sort of normal course to update. CHAIRPERSON WOLPERT: Okay. MS. D'ALESSANDRO: The next item is an update on Long Island City. Karen? MS. MAZZA: The four bids that we have in -- we met with our architect and engineer and they determined that they were not responsive -- based on that; based on the requisite experience. They asked for five projects similar in nature over the past three

16 0 years. None of them had that experience. They also did not include the minutes, what they call exclusion and inclusions, which are what you're not putting in, what you're not covering and what you are covering. We actually went back twice to them and asked for additional information and not one of them provided the entire package of information. So, we are entering into negotiated acquisitions with three companies that did pick up the bid and did do the walk-through, and have done similar projects in the past five years. MR. RODRIGUEZ: Very good. MS. D'ALESSANDRO: Questions? MR. ZACCONE: You could have just come to Staten Island. We have very nice locations already built out. MS. D'ALESSANDRO: The next item on the agenda is World Trade Center update. Karen? MS. MAZZA: You have (g) in your packet with the numbers. Again, these notices, that period of filing notices has closed and the notices are 0,0. The total number of application is, that's an increase of three from last month. So, divided, active members is. Pensions I think

17 0 re-classification. The approval is active, pensioners; and the denials are active and pensioners. We continued to work on agency reports and we will continue to do that as we go forward. MS. D'ALESSANDRO: I'd just note for the record that based on the interpretation of the Law Department with respect to rescue and recovery, that the statistics will be modified as we go forward. And we'll keep you informed. That concludes that portion of my report. CHAIRPERSON WOLPERT: We might go to the actuary, if that's all right with the board. MR. NORTH: Thank you. There are three items today. The first is the fiscal note report. Three fiscal notes went out. If there are any questions, I'd be glad to answer them. The second item is the Tier / loan insurance. And every June, the office of the actuary provides a report that presents an estimated or requested by the board, of a Tier / loan insurance premium rate for the following fiscal year. This year, the requested premium rate in the resolution is a rate of.0 percent per annum. That is consistent with what has been the case for the last several years. And I request that the board approve the

18 0 resolution that is in your package for the Tier / loan insurance premium rate for fiscal year. CHAIRPERSON WOLPERT: Thank you. We need a motion. MR. ZACCONE: Motion. CHAIRPERSON WOLPERT: Second? MR. OTANO: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." (A chorus of "Ayes.") All opposed? Any abstentions? So moved. MS. D'ALESSANDRO: That's Resolution Number. MR. NORTH: The third item is the May th letter on the excess benefits plan. And each year, we ask the board to approve a resolution recognizing that the actuary determined that a portion of the total employer contribution to NYCERS for fiscal year is to be designated as applicable for the excess benefit plan under Chapter of the laws of 0. For this year, the amount is $,,. It's a draft resolution, and I would appreciate the approval of the board.

19 MS. STRYKER: Motion. CHAIRPERSON WOLPERT: Second? MR. RODRIGUEZ: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." 0 (A chorus of "Ayes.") All opposed? Any abstentions? So moved. MR. NORTH: I thank the board. And if I might have one more item. I'd like to introduce someone from my staff, Tzing Chen, one of our actuarial specialists who's been with us for just about three years and is rising star in the office; and actually did a lot of the work that you saw in front of you today. And I just wanted to bring her over to see what happened to all that work that she does. MS. CHEN: Thank you. MR. NORTH: Thank you. MS. D'ALESSANDRO: The excess benefit plan resolution was Number. CHAIRPERSON WOLPERT: Now, Corporate Counsel. Do you have anything to report? MR. SNOW: No. Unless you want to go to

20 0 executive session. CHAIRPERSON WOLPERT: With that, we need a motion for executive session. MR. ZACCONE: Motion. CHAIRPERSON WOLPERT: Second? MR. RODRIGUEZ: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." (A chorus of "Ayes.") All opposed? Any abstentions? (Recess taken.) CHAIRPERSON WOLPERT: Do I have a motion to go out of executive session and into public section? MR. ZACCONE: Motion. MR. OTANO: Second. CHAIRPERSON WOLPERT: All in favor say "Aye." (A chorus of "Ayes.") Opposed? Abstentions? Further business? MS. D'ALESSANDRO: Numbers through, resolutions.

21 CHAIRPERSON WOLPERT: Motion to approve? MR. OTANO: Moved. MR. RODRIGUEZ: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." 0 (A chorus of "Ayes.") Opposed? Abstentions? CHAIRPERSON WOLPERT: Also note for the record that before the meeting began we had an attorney-client session with Counsel. No decisions were made. And with that, unless there's any further business, I need a motion to adjourn. MR. OTANO: Moved. MR. ZACCONE: Second. CHAIRPERSON WOLPERT: All in favor, say "Aye." (A chorus of "Ayes.") Opposed? Abstentions? We are adjourned. (Time noted: : p.m.)

22 C E R T I F I C A T I O N 0 I, Jeffrey Shapiro, a Shorthand Reporter and Notary Public, within and for the State of New York, do hereby certify that I reported the proceedings in the within-entitled matter, on Thursday, June,, at the offices of the NEW YORK CITY RETIREMENT SYSTEM, Adams Street, Brooklyn, New York, and that this is an accurate transcription of these proceedings. IN WITNESS WHEREOF, I have hereunto set my hand this day of,. JEFFREY SHAPIRO