ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
BOARD OF RETIREMENT
2223 E. WELLINGTON AVENUE, SUITE 100
SANTA ANA, CALIFORNIA
REGULAR BOARD MEETING
April 21, 2014
9:00 a.m.
MINUTES
The Chair called the meeting to order at 9:00 a.m. and read the opening statement into the record.
Attendance was as follows:
Present:
Frank E. Eley, Chair; Chuck Packard, Vice Chair; Chris Prevatt; David Ball; Ray Geagan;
Roger Hilton; Shari L. Freidenrich; Tom Beckett; Wayne S. Lindholm
Absent:
Thomas E. Flanigan
Also present:
Steve Delaney, Chief Executive Officer; Suzanne Jenike, Assistant CEO, External
Operations; David Lantzer, Interim Chief Legal Counsel; Girard Miller, Chief Investment
Officer; Brenda Shott, Assistant CEO, Finance and Internal Operations; Cynthia Hockless,
Director of Administrative Services; David James, Director of Internal Audit; Jenny Sadoski,
Director of Information Technology; Robert Kinsler, Communications Manager; Anthony
Beltran, Visual Technician; Megan Cortez; Disability Coordinator; and Michelle Brinker,
Recording Secretary
Harvey Leiderman, Esq., Reed Smith, LLP
Paul Angelo, The Segal Company
Chris Lodge, Vice President, Vitech
Mr. Eley opened the meeting.
Mr. Prevatt led the Pledge of Allegiance.
CONSENT AGENDA
All matters on the Consent Agenda are to be approved by one action unless a Board Member or a
member of the public requests separate action on a specific item. The following items were pulled:



Mr. Delaney pulled item C-3.
Ms. Freidenrich pulled item C-7.
Ms. Freidenrich pulled item C-11.
A motion was made by Mr. Hilton, seconded by Mr. Lindholm to approve the remainder of the
Consent Agenda. The motion carried unanimously.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
C-1
Page 2
MATERIAL DISTRIBUTED
Application Notices
Death Notices
- April 21, 2014
- April 21, 2014
Recommendation: Receive and file.
C-2
BOARD MEETINGS AND COMMITTEE MEETINGS
Approval of Meetings and Minutes
Regular Board Meeting
Governance Committee Special Meeting
- March 17, 2014
- March 20, 2014
Recommendation: Authorize all meetings and approve all minutes.
C-3
LEGISLATIVE UPDATE
Recommendation: Receive and file.
This item was pulled.
C-4
TRAVEL AND EXPENSE REPORT
Recommendation: Receive and file.
C-5
CEO FUTURE AGENDAS
Recommendation: Receive and file.
C-6
OPTIONAL DEATH ALLOWANCE - MARIA ESCOBEDO (DECEASED)
Recommendation: Take appropriate action.
C-7
2014-2015 COUNTY OF ORANGE AND OCEA MOU AGREEMENTS
Recommendation: Receive and file.
This item was pulled.
C-8
GFOA AWARD
Recommendation: Receive and file.
C-9
OPTION 4 RETIREMENT ELECTION - ASPLUND, JOHN
Recommendation: Take appropriate action.
C-10
OPTION 4 RETIREMENT ELECTION - KEIM, PAUL
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 3
Recommendation: Take appropriate action.
C-11
BOARD COMMUNICATIONS
Recommendation: Receive and file.
This item was pulled.
Mr. Packard arrived at 9:03 a.m.
* * * * * * END OF CONSENT AGENDA * * * * * * *
INDIVIDUAL ITEMS AGENDA
I-1
INDIVIDUAL ACTION ON ANY ITEM TRAILED FROM THE CONSENT AGENDA
C-3
LEGISLATIVE UPDATE
Recommendation: Receive and file.
Mr. Lantzer stated that as part of the correction program requested by the IRS with the
Determination Letter, AB 2473 is a bill that will clean up the CERL so that it conforms to
IRS Regulations and the IRS Code. This bill is in the Public Employees Retirement and
Social Security Committee. It is progressing through the Legislature.
Mr. Lantzer stated that AB 2474 is the PEPRA clean-up bill and will make certain
corrections to PEPRA aimed at making it more consistent with CERL. It is also in the Public
Employees Retirement and Social Security Committee.
Mr. Lantzer stated that AB 2628 is sponsored by the County of Orange. It would allow the
Board of Supervisors to appoint an Alternate Appointed Member of the OCERS Board. It is
also in the Public Employees Retirement and Social Security Committee.
Mr. Delaney stated that AB 2628 will be going to hearing in two days, and the OCERS
Board has not taken a position on it. OCERS did an analysis of this when the issue first
came up, and OCERS Counsel at that time determined that since the Board of Supervisors
that dictates the composition of the OCERS Board, it is the Board of Supervisors has to
bring this issue to the Legislature in order to have an Alternate Appointed Member of the
Board.
Mr. Delaney explained that the SACRS Legislative Committee has determined not take a
position on AB 2628 because it is specific to OCERS, therefore, the bill’s arrival at
committee was without an OCERS stated position.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 4
Mr. Delaney said Assemblyman Mansoor, who is leading that bill, had has asked through
Supervisor Moorlach, if there would be an OCERS representative at SACRS to let speak to
the bill (his specific request was Mr. Flanigan or Mr. Delaney).
Mr. Delaney said he asked Mr. Leiderman if we could do an emergency addition to the
agenda, with the 2/3 vote, so that the Board could take up AB 2628 and discuss whether
the Board wished to take a position.
Mr. Leiderman responded by saying that there is a provision in the Brown Act that allows
an exception to publically agendizing items for action at Board meetings at least 72 hours
in advance. There must be a need for the public body to take immediate action, and that
need must have originated since the posting of the agenda, and it needs to take
immediate action before it can agendized for another meeting, and then you can do that
by a 2/3 vote. Mr. Leiderman added that this item does not meet the special exception to
public agendizing the meeting; and there isn’t a necessity that the OCERS Board take that
action. The body may wish to, but that is not sufficient to evade the public agenda
obligation of the meeting. So, his advice was no.
Mr. Eley said the Board’s stance right now is that OCERS is neutral on the bill,
nonetheless, there might be value in sending Mr. Delaney to explain the technicality of AB
2628.
Ms. Freidenrich and Mr. Beckett stated that if the county wants Mr. Delaney, or some
other professional to go testify, they would normally pay for the expense.
Mr. Lindholm wanted to make a motion to send Mr. Delaney to the SACRS Legislative
Committee Meeting to speak to AB 2628. However, Mr. Lantzer said that since the item
was not agendized, and Mr. Leiderman said it was outside the jurisdiction of the Board,
Mr. Lindholm could not make that motion. Mr. Lantzer said the proper motion would be
to receive and file only.
Mr. Delaney clarified that while the Board could not make a motion, they could simply
direct staff; and that direction from the Board for Mr. Delaney to go to the meeting would
be sufficient. However, there was not general consensus for that to happen.
After discussion, a motion was made by Mr. Packard, seconded by Mr. Hilton to receive
and file the Legislative Update, which effectively determined that Mr. Delaney not go to
the SACRS Legislative Committee Meeting to speak to AB 2628 because it was not
agendized. The motion carried unanimously.
C-7
2014-2015 COUNTY OF ORANGE AND OCEA MOU AGREEMENTS
Recommendation: Receive and file.
Ms. Freidenrich said with regard to the OCEA agreement, which was recently signed, and
does have a budget impact, she wanted to thank staff for going through the process of
looking at OCERS’ current budget and determining that at this time there is no need for
additional funds.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 5
After discussion, a motion was made by Ms. Freidenrich, seconded by Mr. Prevatt to
receive and file the MOU Agreements. The motion carried unanimously.
C-11
BOARD COMMUNICATIONS
Recommendation: Receive and file.
Ms. Freidenrich questioned the article, “Judge Finds No ‘Vested Right’ to Spiked Pensions”
and asked how it would affect the item regarding “cashout assumptions” that is before us
today. Ms. Freidenrich noted that in the article, the ruling cash out assumptions is going
to be appealed.
Mr. Leiderman stated that he is Counsel for Contra Costa and the Alameda County Boards
in that litigation, and that there is a hearing scheduled for that same week on the matter.
The so called “spiking” issues have been eliminated from OCERS since about 1999, so
there will be no impact in that litigation on any of our member’s rights at OCERS.
Ms. Freidenrich also wanted to identify the item from Mr. Delaney entitled, “State
Controllers Office – Compliments OCERS Finance Staff”. Ms. Freidenrich said thank you to
our CEO, Mr. Delaney, and the Finance Staff for their good work.
After discussion, a motion was made by Ms. Freidenrich, seconded by Mr. Packard to
receive and file the Board Communications. The motion carried unanimously.
Mr. Geagan arrived at 9:53a.m.
I-2
PORTFOLIO ACTIVITY REPORT
Presentation by Girard Miller, CIO
Mr. Miller presented the Investment Portfolio to the Board. He stated that the bottom line for
March was that we are right on target as far as actuarial discount rate assumptions with a return
of .62 for the plan, which multiplies out to close to 7.25. The first three months have been fairly
non-descript in returns. Mr. Miller believes that OCERS will move along at a steady pace
financially for the remainder of this year.
After discussion, a motion was made by Mr. Prevatt, seconded by Mr. Packard to receive and file
with a correction to a number of the Portfolio Activity Report. The motion carried unanimously.
I-3
IRS DETERMINATION LETTER AND VOLUNTARY CORRECTION PROGRAM (VCP) STATUS
Presentation by David Lantzer, Interim Chief Legal Counsel
Recommendation: Receive and file.
Mr. Lantzer congratulated the Board members on the IRS Determination Letter. OCERS has
received its letter of qualified status from the IRS, and it now qualifies for preferred tax
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 6
treatment, ensuring that OCERS contributions to the plan are not taxable, and the assumption
going forward is that OCERS is a qualified pension plan as far as the IRS is concerned.
Mr. Lantzer said that the fact that the Determination Letter expired on January 31, 2014 is a nonissue, however, it is one of the questions that has been raised by people who say that OCERS and
other 37 Act Plans are in trouble.
Mr. Lantzer explained that the other issue is that the Voluntary Correction Program shows a
number of CERL failures, and two OCERS failures. The IRS’ choice of the term “failure” is an
unfortunate choice of words. What they are saying is that these are changes that need to be
made to CERL and to OCERS administrative rules.
Mr. Lantzer went over the changes recorded in the Determination Letter and explained what
effect they have on OCERS’ current practice.
After discussion, a motion was made by Mr. Lindholm, seconded by Mr. Packard to receive and
file the IRS Determination Letter. The motion carried unanimously.
The Board recessed at 10:34a.m.
The Board reconvened at 10:45a.m.
I-4
STRESS TEST THE PLAN
Presentation by Steve Delaney, CEO
Recommendation: Take appropriate action.
Mr. Delaney explained that at a previous Board meeting, a presentation was given by OCERS’
Fiduciary Counsel, Mr. Leiderman, regarding municipal bankruptcies; included in that
presentation were some suggestions on being proactive as far as finding out what risks might be
conceivable with our various plan sponsors as it related to system soundness. Mr. Leiderman
advised OCERS to consider risk assessment and risk mitigation by using various scenarios to
“stress test” the plan.
Mr. Delaney explained that the Board should consider various steps that OCERS could perform to
forecast conclusions should a plan sponsor have financial challenges. OCERS Internal Audit and
Executive teams could initiate informational meetings with its plan sponsors, and then give an
update to the Board.
Following discussion, a motion was made by Mr. Lindholm, seconded by Mr. Packard to receive
and file the Stress Test the Plan presentation. The motion carried unanimously.
I-5
CASH OUT ASSUMPTIONS
Presentation by Paul Angelo, Segal Consultants
Recommendation: Take appropriate action.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 7
Mr. Angelo gave his fourth presentation on the question of member contribution rates, or cash
out assumptions, and how additional cash out assumptions could be factored into the calculation
of the member contribution rate, in particular, the Basic Member Contribution Rates. Mr. Angelo
said that Option 1 would keep the existing state of affairs as is, and OCERS would keep doing what
they are doing. Option 3 would increase the administrative complexity. Option 4 is a new
modified cash out assumption for basic member rates.
Mr. Leiderman said the law states that Terminal Pay should be included in the Member Basic
Contribution Rate. He said Options 1 and 4 are not acceptable from a legal standpoint. Option 1,
which would leave things as status quo, where the employer picks up a portion of what the
Members Basic Rate should be is not acceptable. Option 4 is another variant of Option 1 because
it leaves some of the Member Basic Contribution “on the cutting room floor for the employer to
sweep up and put into their unfunded liability,” which is also unacceptable.
Mr. Leiderman said we are really discussing which method is fair in making the allocation. He said
the law requires OCERS to allocate and calculate Final Compensation for the Benefit differently
than Final Compensation for the Member Basic Rate.
Mr. Angelo said that Option 2 would be the most straight forward action to take if the intent is to
take the cost impact of terminal pay and share it between the employers and the members on a
basis that is consistent with the way other costs are shared. Options 2 and 3 would have the same
impact on employer rates. The Board elected to adopt Option 2 since Option 3 would increase the
administrative complexity for the actuary and staff.
Option 2 is summarized below:



Option 2: include cashout assumption in basic and COLA member rates with cashout
assumption applied on a pooled basis.
 No adjustment to reflect different maximum cashouts under different MOUs.
This means:
 Employer and Employee: Share in funding basic normal cost associated with
additional cashouts at retirement.
 Employee share: Cashout plus PARTIAL valuation assumptions
 Employer share: Remaining amount not funded by employee
 Employer and Employee: Continue to share funding (50% each) of COLA normal cost
associated with additional cashouts at retirement.
Cashout assumptions used in employer and employee basic and COLA rates:
 Calculated using average cashout by recent retirees in each of the main four
assumption categories: General, Safety-Probation, Safety-Law and Safety-Fire.
 No adjustment to reflect different maximum cashouts under different MOUs.
 Consistent with approach used to select other actuarial assumptions and to set
member contribution rates for a cost sharing plan like OCERS.
Following discussion, a substitute motion was made by Mr. Hilton to adopt Option 1 until such
time as clean up Legislation can be made on this issue. Motion failed due to lack of a second.
Following discussion, a motion was made by Mr. Lindholm, seconded by Mr. Packard to adopt
Option 2 for Cash Out Assumptions. The motion carried 7-1 with voting as follows:
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
AYES
Mr. Ball
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
Page 8
NAYS
Mr. Hilton
ABSTAIN
ABSENT
Mr. Flanigan
The Board recessed at 12:15p.m.
The Board reconvened at 12:55p.m.
DISABILITY APPLICATIONS/MEMBER APPEALS AGENDA
1:00 P.M.
NOTE: WHEN CONSIDERING DISABILITY RETIREMENT APPLICATIONS, THE BOARD MAY FIND IT
NECESSARY TO DISCUSS MATTERS RELATING TO THE EVALUATION OF THE WORK
PERFORMANCE OF AN EMPLOYEE WHO HAS APPLIED FOR DISABILITY RETIREMENT, OR DISCUSS
COMPLAINTS OR CHARGES MADE AGAINST SUCH EMPLOYEE. IF THIS OCCURS, THE BOARD MAY
ADJOURN TO A CLOSED SESSION TO DISCUSS SUCH MATTERS PURSUANT TO GOVERNMENT
CODE SECTION 54957, UNLESS THE EMPLOYEE REQUESTS THAT THE DISCUSSION BE IN PUBLIC.
****************
D-1:
William Nair
Coach Operator, Orange County Transportation Authority
Date of employee filed application for service connected disability retirement: 01/31/2013
Recommendation: Grant service connected disability retirement with an effective date of January
31, 2013. (GENERAL MEMBER)
Megan Cortez, Disability Coordinator, presented item D-1 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Prevatt, seconded by Mr. Hilton to grant service
connected disability retirement with an effective date of January 31, 2013. The motion carried 80 with voting as follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
Mr. Lindholm
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 9
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-2:
Peter Peters
Fire Captain, Orange County Fire Authority
Date of employee filed application for service connected disability retirement: 03/19/2013
Recommendation: Grant service connected disability retirement with an effective date of March
22, 2013. (SAFETY MEMBER)
Megan Cortez, Disability Coordinator, presented item D-2 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Geagan, seconded by Mr. Packard to grant
service connected disability retirement with an effective date of March 22, 2013. The motion
carried 8-0 with voting as follows:
AYES
Mr. Ball
Mr. Geagan
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-3:
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Lisa Ramsey
Deputy Probation Officer II, Orange County Probation Department
Date of employee filed application for service and non-service connected disability retirement:
10/14/2013
Recommendation: Grant service connected disability retirement pursuant to government code
section 31720.5 (Heart Presumption) with an effective date of January 22, 2014. (SAFETY
MEMBER)
Megan Cortez, Disability Coordinator, presented item D-3 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Hilton, seconded by Mr. Prevatt to grant service
connected disability retirement pursuant to government code section 31720.5 (Heart
Presumption) with an effective date of January 22, 2014. The motion carried 8-0 with voting as
follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 10
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-4:
Richard Reese
Investigator, Orange County District Attorney
Date of employee filed application for service connected disability retirement: 01/02/2013
Recommendation: Grant service connected disability retirement pursuant to government code
section 31720.5 (Heart Presumption) with an effective date of January 2, 2013. (SAFETY MEMBER)
Megan Cortez, Disability Coordinator, presented item D-4 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Hilton, seconded by Mr. Packard to grant service
connected disability retirement pursuant to government code section 31720.5 (Heart
Presumption) with an effective date of January 2, 2013. The motion carried 7-1 with voting as
follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-5:
NAYS
Mr. Lindholm
ABSTAIN
ABSENT
Mr. Flanigan
Daniel Mercado
Laborer, Orange County Waste and Recycling
Date of employee filed application for service connected disability retirement: 03/13/2013
Recommendation: Deny service connected disability retirement due to insufficient evidence of
job causation. (GENERAL MEMBER)
Megan Cortez, Disability Coordinator, presented item D-5 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Lindholm to deny
service connected disability retirement due to insufficient evidence of job causation. The motion
carried 8-0 with voting as follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 11
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-6:
Jose Luis Saavedra
Maintenance Crew Supervisor IV, Orange County Public Works
Date of employee application for service and non-service connected disability retirement:
10/18/2012
Recommendation: Deny service and non-service connected disability retirement for conditions 1
and 2 due to insufficient evidence of permanent incapacity. (GENERAL MEMBER)
Megan Cortez, Disability Coordinator, presented item D-6 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Lindholm to deny
service and non-service connected disability retirement for conditions 1 and 2 due to insufficient
evidence of permanent incapacity. The motion carried 6-2 with voting as follows:
AYES
Mr. Ball
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-7:
NAYS
Mr. Hilton
Mr. Packard
ABSTAIN
ABSENT
Mr. Flanigan
Peter Ross (deceased)
Deputy Sheriff II, Orange County Sheriff’s Department
Application for service connected disability retirement filed by
Ms. Theresa Ross
Date of application: 03/24/2014
Recommendation: Grant survivor benefits pursuant to government code section 31787 (Optional
Death Allowance) and government code section 31720.6 (Cancer Presumption). (SAFETY
MEMBER)
Megan Cortez, Disability Coordinator, presented item D-7 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Hilton, seconded by Mr. Packard to grant
survivor benefits pursuant to government code section 31787 (Optional Death Allowance) and
government code section 31720.6 (Cancer Presumption). The motion carried 8-0 with voting as
follows:
AYES
Mr. Ball
Mr. Hilton
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 12
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-8:
Steven Dexter
Sergeant, Orange County Sheriff’s Department
Date of employee filed application for service connected disability retirement: 08/11/2011
Date of employer filed application for service and non-service connected disability retirement:
09/16/2011
Recommendation: Adopt the findings and recommendations of the hearing officer and grant
applicant’s application for service connected disability retirement. (SAFETY MEMBER)
Megan Cortez, Disability Coordinator, presented item D-8 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Hilton, seconded by Mr. Prevatt to adopt the
findings and recommendations of the hearing officer and grant applicant’s application for service
connected disability retirement. The motion carried 8-0 with voting as follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-9:
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Margery Dunn
Senior Social Worker, Public Administrator/Public Guardian
Date of employee filed application for service and non-service connected disability retirement:
06/17/2010
Recommendation: Adopt the findings and recommendations of the hearing officer and deny
applicant’s application for service connected disability retirement. The effective date for
applicant’s non-service connected disability retirement should be the day after she last received
regular compensation. (GENERAL MEMBER)
Megan Cortez, Disability Coordinator, presented item D-9 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Hilton to adopt the
findings and recommendations of the hearing officer and deny applicant’s application for service
connected disability retirement. The effective date for applicant’s non-service connected disability
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 13
retirement should be the day after she last received regular compensation. The motion carried 80 with voting as follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-10:
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Anthony Delgado
Administrative Manager III, Orange County Health Care Agency
Date of request for re-employment of retired member: 02/24/2014
Recommendation: Reinstate Mr. Delgado as an active member under the provisions of
government code section 31680.4 and 31680.5. (GENERAL MEMBER)
Megan Cortez, Disability Coordinator, presented item D-10 to the Board along with the staff
recommendation.
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Prevatt to reinstate
Mr. Delgado as an active member under the provisions of government code section 31680.4 and
31680.5. The motion carried 8-0 with voting as follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
D-11:
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
Marie Latino-Luna
Contract Maintenance Administrator, Orange County Transportation Authority
Date of request for re-employment of retired member: 02/24/2014
Recommendation: Reinstate Ms. Latino-Luna as an active member under the provisions of
government code section 31680.4 and 31680.5. (GENERAL MEMBER)
Megan Cortez, Disability Coordinator, presented item D-11 to the Board along with the staff
recommendation.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 14
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Prevatt to reinstate
Ms. Latino-Luna as an active member under the provisions of government code section 31680.4
and 31680.5. The motion carried 8-0 with voting as follows:
AYES
Mr. Ball
Mr. Hilton
Mr. Packard
Mr. Prevatt
Mr. Lindholm
Mr. Beckett
Ms. Freidenrich
Chair Eley
NAYS
ABSTAIN
ABSENT
Mr. Flanigan
* * * * * * * * END OF DISABILITY APPLICATIONS/MEMBER APPEALS AGENDA * * * * * * *
CLOSED SESSION ITEM
E-1
CONFERENCE REGARDING EVALUATION OF PERFORMANCE OF A PUBLIC EMPLOYEE
(GOVERNMENT CODE SECTION 54957)
Adjourn pursuant to subdivision (b) of Government Code Section 54957 (Chief Investment Officer)
Recommendation: Take appropriate action.
After Board members met, Mr. Eley stated that there was no reportable action.
* * * * * * * END OF CLOSED SESSION ITEMS AGENDA * * * * * *
I-6
OCERS RULES OF PARLIAMENTARY PROCEDURE
Presentation by David Lantzer, Interim Chief Legal Counsel
Recommendation: Take appropriate action.
Mr. Lantzer reorted that last Fall, the Governance Committee members had considered adopting
an abbreviated version of Robert’s Rules of Order as a set of rules for OCERS Board members.
However, the rules in their entirety are extremely complex and the members did not want to get
bogged down with the minutiae there, so they directed staff to look into developing some of our
own rules.
Mr. Lantzer reported staff gathered information on parliamentary procedure training for Board
members and counsel. In addition, staff drew up a set of draft rules to present to the Governance
Committee. The Governance Committee began reviewing the draft rules, and, due to the
complexity and number of questions arising, they scheduled a special meeting on March 20th to
review and revise the rules. At that subsequent meeting, there were six threshold questions that
needed to be considered by the Board:
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 15
1. One of the issues that arose was the mechanics of how items get agendized on agendas,
and what should occur if the Board Chair refuses agendizing an item suggested by a Board
or committee member, and should there be an appeal process?
2. Another issue is that OCERS’ By-Laws states that all votes should be by majority, unless
we have to have a special vote pursuant to the Brown Act. According to the Robert’s
Rules of Order, there has to be a super majority (2/3 vote) in order to take away the right
to debate from an individual Board or committee member. Adopting a 2/3 vote for
certain motions would necessitate a change to the By-Laws, which requires the Board of
Supervisors’ approval.
3. Should OCERS adopt a 2/3 vote requirement to move the previous question since this
motion ends debate and requires an immediate vote on the motion on the floor?
4. Should OCERS adopt a 2/3 vote requirement to rescind an action made by a prior motion?
5. When is a motion for reconsideration appropriate? There is a motion for reconsideration
in Robert’s Rules of Order that states it has to be brought during the meeting where the
original motion is discussed.
6. Should OCERS place a time limit on Board member comments during meetings?
Following discussion, staff will attempt to put some language together for the rules about
agendizing items and an appeals process, as well as language that will reflect what should occur if
there is a conflict with agendizing an item, we would then bring it up for a majority vote at a
future meeting.
The feedback from most Board members was that they favor majority votes, rather than 2/3
votes. In addition, more Trustees were for not keeping track of new versus old items.
Numbers 2, 3, and 4, will be drafted up to be just majority vote.
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Lindholm to receive
and file the Draft Rules of Parliamentary Procedure. The motion carried unanimously.
I-7
QUARTERLY V3 – UPDATE
Presentation by Jenny Sadoski, Director of Information Technology
Recommendations: 1. Receive and file Quarterly V3 Updates.
2. Take appropriate action regarding V3 plan adjustments.
Ms. Sadoski said we will not meet the March 2015 go-live date. There will be approximately a six
month extension. With the extension, the go-live date would be September 2015. However, that
will include some periods when there will be a heavy workload for OCERS in early 2015, which is
when we will do our retirement applications for that year. Therefore, at the next meeting, we will
have two choices for the Board to consider.
Mr. Lodge gave the Board a presentation on Vitech as a firm, and discussed its infrastructure.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 16
After discussion, a motion was made by Mr. Packard, seconded by Mr. Beckett to receive and file
both items under the recommendations of the Quarterly V3 Update. The motion carried
unanimously.
I-8
2014 – 2016 STRATEGIC PLAN – QUARTERLY REVIEW
Presentation by Steve Delaney, CEO
Recommendation: Receive and file.
Mr. Delaney said there are two topics that he will be working on for consideration of the Board
this year. One is another series of benchmarks, and finding an alternative benchmarking standard.
The other one is OCERS’ Mission Statement.
In addition, there is a new item, which is to create Administrative Rules. Mr. Delaney said he will
be working with OCERS’ legal team to develop details of a long term plan for the Board’s
consideration.
After discussion, a motion was made by Mr. Hilton, seconded by Mr. Lindholm to receive and file
the 2014–2016 Strategic Plan–Quarterly Review. The motion carried unanimously.
I-9
SACRS’ BOARD OF DIRECTORS ELECTION
Presentation by David Lantzer, Interim Chief Legal Counsel
Recommendation: Consider the candidate slate for SACRS’ Board of Directors and provide
direction to the voting delegate for the SACRS’ May meeting.
Mr. Lantzer said that every year the SACRS Board of Directors holds an election of its officers.
There are no Orange County Administrators on the Board of this particular slate; and they are all
people who have been with SACRS for an extended period of time.
After discussion, a motion was made by Mr. Hilton, seconded by Mr. Prevatt to approve the slate
recommended by the SACRS Nominating Committee. The motion carried unanimously.
* * * * * * * END OF INDIVIDUAL ITEMS AGENDA * * * * * *
PUBLIC COMMENTS: At this time members of the public may address the Board of Retirement regarding any
items within the subject matter jurisdiction of the Board, provided that no action may be taken on nonagendized items unless authorized by law.
None
BOARD MEMBER COMMENTS
Mr. Ball requested that Mr. Leiderman write a memo to OCERS’ Governance Committee clarifying
when something needs to be a motion for an action to be taken.
Orange County Employees Retirement System
April 21, 2014
Regular Board Meeting – Minutes
Page 17
Chair Eley thanked CEO and staff for another great day.
CHIEF EXECUTIVE OFFICER/STAFF COMMENTS
Mr. Delaney said that there will be an Audit Committee Meeting immediately following this Board
Meeting.
COUNSEL COMMENT
None
ADJOURNMENT: (IN MEMORY OF THE ACTIVE MEMBERS, RETIRED MEMBERS, AND SURVIVING
SPOUSES WHO PASSED AWAY THIS PAST MONTH)
Active Members
Liechty, Matthew
Retired Members
Diggs, John
Fourniea, Earl
Garcia, Bertha
Goodale, Iva
Hitchcock, Peter
Klinck, Andrew
Larsen, Michael
Lucett, Wallace
Mains, Donald
Muilenburg, Iris
Mullen, Esther
Ouellette, Robert
Rakas, George
Scanlan, Velma
Stettler, Leslie
Stichtman, Donna
Taylor, Richard
Tram, Quang
Surviving Spouses
Evans, Loretta
Greene, David
Mulholland, Eugene
Sughrue, Dorothy
ADJOURNMENT:
There being no further business to bring before the Board, the meeting adjourned at 4:12 p.m.
Submitted by:
Approved by:
_________________________
Steve Delaney
Secretary to the Board
____________________________
Frank Eley, Chair
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
BOARD OF RETIREMENT
2223 WELLINGTON AVENUE, SUITE 100
SANTA ANA, CA 92701
AUDIT COMMITTEE MEETING
April 21, 2014
IMMEDIATELY FOLLOWING THE REGULAR BOARD MEETING
MINUTES
The Chair called the meeting to order at 4:18 p.m. and read the opening statement into the record.
Attendance was as follows:
Committee:
Ray Geagan, Chair; Chuck Packard, Vice Chair; Shari L. Freidenrich; Wayne S.
Lindholm
Invitees:
Steve Delaney, Chief Executive Officer; Brenda Shott, Assistant CEO, Finance and
Internal Operations; Suzanne Jenike, Assistant CEO, External Operations; David
Lantzer, Interim Chief Legal Counsel; David James, Director of Internal Audit; Tracy
Bowman, Director of Finance; Mark Adviento, Internal Auditor; Anthony Beltran,
Visual Technician; and Michelle Brinker, Recording Secretary
Guest:
Rick Green, Partner, MGO
Linda Hurley, Partner, MGO
A.
2013 FINANCIAL STATEMENT AUDIT - ENTRANCE CONFERENCE
Presentation by Rick Green, MGO
Recommendation: Take appropriate action.
Mr. Green explained the MGO auditing procedure. He said that he will be performing a
financial audit for the year ending December 31, 2013 for OCERS, and as a byproduct, he is
going to issue three products:
1. The Independent Auditor’s Report on OCERS Financial Statements. (May 2014)
2. Internal Controls and Compliance with Laws Regulations Report - AICPA. (May 2014)
3. OCERS Audit Committee Report, which identifies certain significant communications
that the AICPA has deemed appropriate that the independent auditor communicate to
those charged with governance. (June 2014)
Mr. Green explained that MGO’s responsibilities are different than OCERS’ management’s
responsibilities.
 Should MGO come across any kind of significant deficiency or material error in the
internal controls financial reporting, MGO is required to report those to OCERS.
 OCERS’ Management is responsible for preparing the financial statements in
accordance with generally accepted accounting principles.
 MGO audits and then renders an opinion.
 OCERS’ Management is responsible for designing, implementing and monitoring a
system of internal controls or finance reporting that ensures that the financial
F:\Board\Scanned Board-Committee Packets\June\2014\Regular Board Meeting\BoardVantage Material\C-2b 04-21-14
Audit Committee Minutes.docx
Page 2
Orange County Employees Retirement System
April 21, 2014
Audit Committee Meeting – Minutes

statements are prepared in accordance with GAP and that all significant laws,
regulations, grant agreements that have an impact on financial reporting are complied
with.
OCERS’ Management is responsible to put forth a corrective action plan to any kind of
management comment that MGO has that speaks to the internal controls structure
within the organization that we obtain the understanding on.
When MGO performs an audit, they use a Risk Base Audit approach, which means audit risk,
or the risk of material error on the financial statement.
Following discussion, a motion was made by Ms. Freidenrich, seconded by Mr. Lindholm, to
receive and file the 2013 Financial Statement Audit – Entrance Conference. The motion
carried unanimously.
PUBLIC COMMENTS: At this time members of the public may address the Committee regarding any
items within the subject matter jurisdiction of the Committee, provided that no action may be taken
on non-agendized items unless authorized by law.
None.
COMMITTEE MEMBER COMMENTS
None.
CHIEF EXECUTIVE OFFICER/STAFF COMMENTS
None.
ADJOURNMENT:
There being no further business to bring before the Committee, the meeting adjourned at
4:53 p.m.
Submitted by:
Approved by:
___________________________
Steve Delaney
Secretary to the Committee
__________________________
Raymond Geagan
Committee Chair
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM
BOARD OF RETIREMENT
2223 E. WELLINGTON AVENUE, SUITE 100
SANTA ANA, CALIFORNIA
REGULAR MEETING
May 19, 2014
9:00 a.m.
MINUTES
The Chair called the meeting to order at 9:00 a.m. and read the opening statement into the record.
Attendance was as follows:
Present:
Frank E. Eley, Chair; Chuck Packard, Vice Chair; Chris Prevatt; Ray Geagan; Roger Hilton;
Shari L. Freidenrich; Thomas E. Flanigan; Tom Beckett; Wayne S. Lindholm
Absent:
David Ball, Board Member; Steve Delaney, Chief Executive Officer; Girard Miller, Chief
Investment Officer
Also present:
Suzanne Jenike, Assistant CEO, External Operations; Brenda Shott, Assistant CEO, Finance
and Internal Operations; Shanta Chary, Director of Investment Operations; Cynthia
Hockless, Director of Administrative Services; David James, Director of Internal Audit;
Jenny Sadoski, Director of Information Technology; David Lantzer, Interim Chief Legal
Counsel; Robert Kinsler, Communications Manager; Anthony Beltran, Visual Technician;
Megan Cortez; Disability Coordinator; and Michelle Brinker, Recording Secretary
Guests:
Harvey Leiderman, Esq., Reed Smith, LLP
Paul Angelo, The Segal Company
Chris Lodge, Vice President, Vitech
Chair Eley opened the meeting.
Mr. Flanigan led the Pledge of Allegiance.
Ms. Shott was present as a substitute in Mr. Delaney’s absence.
CONSENT AGENDA
All matters on the Consent Agenda are to be approved by one action unless a Board Member or a
member of the public requests separate action on a specific item.
C-1
MATERIAL DISTRIBUTED
Application Notices
Death Notices
Recommendation: Receive and file.
- May 19, 2014
- May 19, 2014
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
C-2
Page 2
BOARD MEETINGS AND COMMITTEE MEETINGS
Approval of Meetings and Minutes
Regular Board Meeting
- April 30, 2014
Recommendation: Authorize all meetings and approve all minutes.
C-3
CEO FUTURE AGENDAS
Recommendation: Receive and file.
C-4
LEGISLATIVE UPDATE
Recommendation: Receive and file.
C-5
401(A) PLAN AMENDMENT
Recommendation: Receive and file.
C-6
QUARTERLY BUDGET REPORT
Recommendation: Receive and file.
C-7
QUARTERLY FINANCIAL STATEMENTS REPORT
Recommendation: Receive and file.
C-8
LEGAL OPINION ON CASH OUT ASSUMPTION
Recommendation: Approve request to ReedSmith for written opinion.
C-9
STRESS TESTING OF THE PLAN
Recommendation: Approve OCERS Internal Audit Staff to prepare OCERS Plan Sponsor
background report.
C-10
BOARD COMMUNICATIONS
Recommendation: Receive and file.
* * * * * * END OF CONSENT AGENDA * * * * * * *
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 3
INDIVIDUAL ITEMS AGENDA
I-1
INDIVIDUAL ACTION ON ANY ITEM TRAILED FROM THE CONSENT AGENDA
No items were pulled.
A motion was made by Mr. Hilton, seconded by Mr. Prevatt to approve all items in the Consent
Agenda. The motion carried unanimously.
Mr. Packard arrived at 9:05a.m.
Ms. Freidenrich arrived at 9:08a.m.
I-2
PORTFOLIO ACTIVITY REPORT
Presentation by Shanta Chary, DIO
Recommendation: Receive and file.
Ms. Chary gave an overview of OCERS’ March/April performance, May mid-month index
performance, and discussed what to expect in the upcoming investment committee meetings.
After discussion, a motion was made by Mr. Lindholm, seconded by Mr. Packard to receive and
file the Portfolio Activity Report. The motion carried unanimously.
Mr. Geagan arrived at 9:15a.m.
I-3
UPDATE ON OCERS COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)
Presentation by Brenda Shott, Assistant CEO, Finance and Internal Operations
Recommendation: Receive and file.
Ms. Shott gave an update to the Board on the progress that we are making on the 12/31/13
financial statements in OCERS’ CAFR. A couple of weeks ago we received information from The
County that there will be a delay for OCERS receiving a new actuary valuation for the County’s
OPEB Plan. OCERS is required under GAAP to report the 401(h) for their OPEB Plan as a trust fund
in OCERS financial statements; therefore, OCERS is required to have an updated valuation every
two years.
Ms. Shott stated that she received an update from County Executives stating that the data will be
sent by the County and AOCDS this week. It will require six weeks for their actuary to complete
their valuation; then OCERS will need approximately two additional weeks to finalize it; therefore,
OCERS expects the financials to be complete by mid-July.
Ms. Shott stated that OCERS’ auditors have completed all of their field work about a week and a
half earlier than planned, with the exception of testing the County’s OPEB Plan. They plan to
return to finish the audit in the future.
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 4
The County has responded well to this matter. They apologized, understanding the predicament
that they have put OCERS in, and they are looking at ways to change the process so that it doesn’t
happen again. They are working with OCERS to make sure it will be on time in 2015, and one idea
that they proposed is to begin performing the valuation annually. That would help them smooth
out their process, and give OCERS a cushion should it be delayed in the future because OCERS
would subsequently have a prior year valuation to utilize.
After discussion, a motion was made by Mr. Packard, seconded by Mr. Hilton to receive and file
the update on OCERS Comprehensive Annual Financial Report (CAFR). The motion carried
unanimously.
I-4
AB 2628 ALTERNATE APPOINTED OCERS BOARD MEMBER
Presentation by David Lantzer, Interim Chief Legal Counsel
Recommendation: Take appropriate action.
Mr. Lantzer explained to the Board that AB 2628 was defeated in committee for this Legislative
session. Be that as it may, he asked the Board members if the concept would be supported for
future Legislation, and asked for the Board’s position regarding this Bill.
The Board members said that they would have to see an actual Bill to make that decision; they
could not take action on a hypothetical Bill. Therefore, the ultimate decision was to table the item
indefinitely. However, should a Bill go before the SACRS Legislative Committee again, they would
be willing to discuss it for a second time.
After discussion, a motion was made by Mr. Prevatt, seconded by Mr. Beckett to table indefinitely
AB 2628 Alternate Appointed OCERS Board Member. The motion carried 6-2 with voting as
follows.
AYES
Mr. Hilton
Mr. Beckett
Ms. Freidenrich
Mr. Lindholm
Mr. Prevatt
Chair Eley
NAYS
Mr. Flanigan
Mr. Packard
ABSTAIN
The Board recessed at 10:06a.m.
The Board reconvened at 10:17a.m.
I-5
DECEMBER 31, 2013 ACTUARIAL VALUATION (PRELIMINARY)
Presentation by Paul Angelo, The Segal Company
Recommendation: Receive and file.
ABSENT
Mr. Ball
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 5
Mr. Angelo presented a Preliminary Actuarial Valuation for December 31, 2013, which presented
no concerns currently. The Segal Group will present a final valuation at the June meeting. Mr.
Angelo then added a Summary of the Active Membership presentation. OCERS Membership last
year was 21,256, and it is 21,368 this year.
After discussion, a motion was made by Mr. Packard, seconded by Mr. Hilton to receive and file
the Preliminary December 31, 2013 Actuarial Valuation. The motion carried unanimously.
I-6
V3 IT CONVERSION REPLANNING
Presentation by Jenny Sadoski, Director of Information Technology
Recommendation: Take appropriate action.
Ms. Sadoski stated that OCERS had to amend the project go-live date again in order to manage
the concerns with Build 3 and Build 4. OCERS and Vitech collectively came up with two options to
complete the project, which required approval from the Board:
 Option 1 would delay the project by an additional six months; therefore the go-live date
would be September of 2015. The additional cost of this option to the project is $2.8M
after using $900K of Board approved contingency on amendment of $1.9M is required,
bringing the project total (without staff time) to $22,741,869.
 Option 2 would delay the project by an additional nine months, and would then have a
go-live date of December 2015. The additional cost of this option is $3.0M. After using
$900K of Board approved project contingency an amendment of $2.1M to the project
budget is required, bringing the project total (without staff time) to $22,967,949.
With Option 1, User Acceptance Testing (UAT) would occur during OCERS’ busy season, which
would create unnecessary risk for regular job functions as well as UAT, which would create an
excessive risk for members. Therefore Option 2, the nine month extension, was the preferable
option.
After discussion, a motion was made by Mr. Packard, seconded by Mr. Lindholm for approval of
Option 2. The motion carried unanimously.
* * * * * * * END OF INDIVIDUAL ITEMS AGENDA * * * * * *
The Board recessed for lunch at 12:43 p.m.
The Board reconvened at 1:15 p.m.
DISABILITY APPLICATIONS/MEMBER APPEALS AGENDA
1:15 P.M.
NOTE: WHEN CONSIDERING DISABILITY RETIREMENT APPLICATIONS, THE BOARD MAY FIND IT
NECESSARY TO DISCUSS MATTERS RELATING TO THE EVALUATION OF THE WORK
PERFORMANCE OF AN EMPLOYEE WHO HAS APPLIED FOR DISABILITY RETIREMENT, OR DISCUSS
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 6
COMPLAINTS OR CHARGES MADE AGAINST SUCH EMPLOYEE. IF THIS OCCURS, THE BOARD
MAY ADJOURN TO A CLOSED SESSION TO DISCUSS SUCH MATTERS PURSUANT TO
GOVERNMENT CODE SECTION 54957, UNLESS THE EMPLOYEE REQUESTS THAT THE DISCUSSION
BE IN PUBLIC.
****************
Megan Cortez, Disability Coordinator, presented item D-1 to the Board along with the staff
recommendation.
D-1:
Mark Brown
Information Processing Technician, Orange County Social Services Agency
Date of employee filed application for non-service connected disability retirement: 11/01/2012
STAFF RECOMMENDATION IS TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT
WITH AN EFFECTIVE DATE OF NOVEMBER 2, 2012. (GENERAL MEMBER) (D-1)
Following discussion, a motion was made by Mr. Prevatt, seconded by Mr. Packard to grant nonservice connected disability retirement with an effective date of November 2, 2012. The motion
carried 8-0 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
NAYS
ABSTAIN
ABSENT
Mr. Ball
Megan Cortez, Disability Coordinator, presented item D-2 to the Board along with the staff
recommendation.
D-2:
Arleen Buckley-Juma
Office Assistant, Orange County Assessor
Date of employee filed application for non-service connected disability retirement: 05/02/2013
STAFF RECOMMENDATION IS TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT
WITH AN EFFECTIVE DATE OF MAY 3, 2013. (GENERAL MEMBER) (D-2)
Following discussion, a motion was made by Mr. Prevatt, seconded by Mr. Flanigan to grant nonservice connected disability retirement with an effective date of May 3, 2013. The motion carried
8-0 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
NAYS
ABSTAIN
ABSENT
Mr. Ball
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 7
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
Megan Cortez, Disability Coordinator, presented item D-3 to the Board along with the staff
recommendation.
D-3:
Jerry R. Chase
Deputy Sheriff II, Orange County Sheriff’s Department
Date of employee filed application for service connected disability retirement: 06/13/2013
STAFF RECOMMENDATION IS TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH
AN EFFECTIVE DATE OF JUNE 13, 2013. (SAFETY MEMBER) (D-3)
Following discussion, a motion was made by Mr. Hilton, seconded by Mr. Flanigan to grant service
connected disability retirement with an effective date of June 13, 2013. The motion carried 8-0
with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
NAYS
ABSTAIN
ABSENT
Mr. Ball
Megan Cortez, Disability Coordinator, presented item D-4 to the Board along with the staff
recommendation.
D-4:
Gina Dameron (Deceased)
Engineering Technician, Orange County Sheriff’s Department
Date of employee filed application for non-service connected disability retirement: 01/16/2014
STAFF RECOMMENDATION IS TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT
WITH AN EFFECTIVE DATE OF MARCH 7, 2014. (GENERAL MEMBER) (D-4)
Following discussion, a motion was made by Mr. Prevatt, seconded by Mr. Flanigan to grant nonservice connected disability retirement with an effective date of March 7, 2014. The motion
carried 8-0 with voting as follows:
AYES
Mr. Beckett
NAYS
ABSTAIN
ABSENT
Mr. Ball
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 8
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
Megan Cortez, Disability Coordinator, presented item D-5 to the Board along with the staff
recommendation.
D-5:
Vincente Quiroz
Coach Operator, Orange County Transportation Authority
Date of employee filed application for non-service connected disability retirement: 07/19/2013
STAFF RECOMMENDATION IS TO GRANT NON-SERVICE CONNECTED DISABILITY RETIREMENT
WITH AN EFFECTIVE DATE OF JULY 19, 2013. (GENERAL MEMBER) (D-5)
Following discussion, a motion was made by Mr. Flanigan, seconded by Mr. Packard to grant nonservice connected disability retirement with an effective date of July 19, 2013. The motion carried
8-0 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
NAYS
ABSTAIN
ABSENT
Mr. Ball
Megan Cortez, Disability Coordinator, presented item D-6 to the Board along with the staff
recommendation.
D-6:
David Waggoner
Deputy Sheriff, Orange County Sheriff’s Department
Date of employee filed application for service connected disability retirement: 11/01/2013
STAFF RECOMMENDATION IS TO GRANT SERVICE CONNECTED DISABILITY RETIREMENT WITH
AN EFFECTIVE DATE OF THE DAY AFTER THE LAST DAY OF COMPENSATION. (SAFETY MEMBER)
(D-6)
Following discussion, a motion was made by Mr. Flanigan, seconded by Mr. Hilton to grant service
connected disability retirement with an effective date of the day after the last day of
compensation. The motion carried 8-0 with voting as follows:
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
NAYS
Page 9
ABSTAIN
ABSENT
Mr. Ball
Megan Cortez, Disability Coordinator, informed the Board that the member, Tyrone Givan, requested to
pull his case. (D-7)
D-7:
Tyrone Givan
Plant Operator, Orange County Sanitation District
Date of employee filed application for service connected disability retirement: 01/16/2013
STAFF RECOMMENDATION IS TO DENY SERVICE CONNECTED DISABILITY RETIREMENT DUE TO
INSUFFICIENT EVIDENCE OF JOB CAUSATION. (GENERAL MEMBER) (D-7)
Tyrone Givan requested to pull his case.
Megan Cortez, Disability Coordinator, presented item D-8 to the Board along with the staff
recommendation.
D-8:
Barbara Matillo
Deputy Sheriff II, Orange County Sheriff’s Department
Date of employee filed application for service and non-service connected disability retirement:
12/15/2011
STAFF RECOMMENDATION IS TO DENY SERVICE CONNECTED DISABILITY RETIREMENT DUE TO
INSUFFICIENT EVIDENCE OF JOB CAUSATION. (SAFETY MEMBER) (D-8)
Following discussion, a motion was made by Mr. Flanigan, seconded by Mr. Packard to deny
service connected disability retirement due to insufficient evidence of job causation. The motion
carried 6-2 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Lindholm
Mr. Packard
Mr. Prevatt
NAYS
Mr. Hilton
Chair Eley
ABSTAIN
ABSENT
Mr. Ball
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 10
Megan Cortez, Disability Coordinator, presented item D-9 to the Board along with the staff
recommendation.
D-9:
William T. Parker III
Deputy Juvenile Corrections Officer, Orange County Probation Department
Date employee filed application for service connected disability retirement: 09/07/2012
STAFF RECOMMENDATION IS TO DENY SERVICE CONNECTED DISABILITY RETIREMENT DUE TO
INSUFFICIENT EVIDENCE OF PERMANENT INCAPACITY. (SAFETY MEMBER) (D-9)
Following discussion, a motion was made by Mr. Packard, seconded by Mr. Lindholm to deny
service connected disability retirement due to insufficient evidence of permanent incapacity. The
motion carried 7-1 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Chair Eley
NAYS
Mr. Prevatt
ABSTAIN
ABSENT
Mr. Ball
Megan Cortez, Disability Coordinator, presented item D-10 to the Board along with the staff
recommendation.
D-10:
Donald Kilcullen
Deputy Sheriff I, Orange County Sheriff’s Department
Date of employee filed application for service and non-service connected disability retirement:
03/04/2011
Date of employer filed application for service and non-service connected disability retirement:
01/03/2012
STAFF RECOMMENDATION IS TO ADOPT THE FINDINGS AND RECOMMENDATIONS OF THE
HEARING OFFICER AND GRANT APPLICANT’S APPLICATION FOR SERVICE CONNECTED DISABILITY
RETIREMENT. (SAFETY MEMBER) (D-10)
Following discussion, a motion was made by Mr. Flanigan, seconded by Mr. Packard to adopt the
findings and recommendations of the hearing officer and grant applicant’s application for service
connected disability retirement. The motion carried 8-0 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
NAYS
ABSTAIN
ABSENT
Mr. Ball
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 11
Mr. Prevatt
Chair Eley
Megan Cortez, Disability Coordinator, presented item D-11 to the Board along with the staff
recommendation.
D-11: Karen Mosley
Senior Institutional Cook, Orange County Sheriff’s Department
Date of employee filed application for service connected disability retirement: 03/27/2012
STAFF RECOMMENDATION IS TO ADOPT THE FINDINGS AND RECOMMENDATIONS OF THE
HEARING OFFICER AND DENY APPLICANT’S APPLICATION FOR SERVICE CONNECTED DISABILITY
RETIREMENT. (GENERAL MEMBER) (D-11)
Following discussion, a motion was made by Mr. Prevatt, seconded by Mr. Flanigan to adopt the
findings and recommendations of the hearing officer and deny applicant’s application for service
connected disability retirement. The motion carried 8-0 with voting as follows:
AYES
Mr. Beckett
Mr. Flanigan
Ms. Freidenrich
Mr. Hilton
Mr. Lindholm
Mr. Packard
Mr. Prevatt
Chair Eley
NAYS
ABSTAIN
ABSENT
Mr. Ball
D-12: Reviewing Hearing Officer Recommendations
Presentation by David Lantzer, Interim Chief Legal Counsel
Recommendation: Receive and file.
Mr. Lantzer explained the Disability Hearing Process and what the options are for the Board after
an administrative hearing on a disability. The Board can:
 Option A: Adopt the Hearing Officer’s recommendation
 Option B: Require a transcript or summary of testimony in evidence, and then rehear the
matter in front of the full Board based on that summary, then the Board decides based on
the Hearing Officer’s recommendation and that transcript.
 Option C: Refer the matter back to the Hearing Officer with or without instruction
 Option D: Completely remove what the Hearing Officer has recommended, capture all of
the evidence, transcripts, etc., and then the Board decides based on those articles only.
At the October 21, 2013 Board Meeting, the Board considered a hearing officer’s
recommendation for Donald Blankenship. Mr. Blankenship was awarded a non-service connected
disability retirement, and he took that to a hearing, where the hearing officer recommended
denying a service connected disability retirement. The Board voted to exercise Option B. OCERS’
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 12
Staff Attorney, Dawn Matsuo has been working with the applicant’s attorney, Mr. Pingle, and
together they have produced an agreed upon summary of the evidence. They will be producing
the transcript of the administrative hearing, and they both have prepared briefs on the matter to
present to the Board.
Mr. Lantzer stated that this case will be a part of the June Board Meeting disability cases. When
the meeting gets into the disability cases next month’s, Ms. Matsuo and Mr. Pingle each will give
a three to five minute presentation. The Board will then have the opportunity to ask questions,
and look at specific points of evidence, along with a copy of the hearing officer’s
recommendation, and then the Board will vote on whether or not to grant the applicant’s
application for service connected disability retirement.
Mr. Lantzer stated that he was in a neutral position on this case, and he offered to advise the
Board on hearing rules, and on legal issues.
After discussion, a motion was made by Mr. Packard, seconded by Mr. Hilton to receive and file
Reviewing Hearing Officer Recommendations. The motion carried unanimously.
* * * * * * * * END OF DISABILITY APPLICATIONS/MEMBER APPEALS AGENDA * * * * * * *
The Board recessed at 1:55p.m.
The Board reconvened at 2:00p.m.
CLOSED SESSION ITEM
E-1
CONFERENCE REGARDING EVALUATION OF PERFORMANCE OF A PUBLIC EMPLOYEE
(GOVERNMENT CODE SECTION 54957)
Adjourn pursuant to subdivision (b) of Government Code Section 54957 (Chief Investment Officer)
Recommendation: Take appropriate action.
After Board members met, Chair Eley stated that there was no reportable action.
E-2
CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION (Government Code §
54956.9 (c))
Adjourn pursuant to Subdivision (c) of Government Code Section 54956.9 (one case: Public
Employees' Retirement System of Mississippi v. IndyMac MBS, Inc.)
Recommendation: Take appropriate action.
After Board members met, Chair Eley stated that the Board authorized staff to sign on to the
amicus brief prepared by Bernstein Litowitz Berger & Grossmann LLP.
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
E-3
Page 13
CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION (Government Code §
54956.9 (c))
Adjourn pursuant to Subdivision (c) of Government Code Section 54956.9 (one case: Porter v.
Board of Retirement)
Recommendation: Take appropriate action.
After Board members met, Chair Eley stated that there was no reportable action.
* * * * * * * END OF CLOSED SESSION ITEMS AGENDA * * * * * *
PUBLIC COMMENTS: At this time members of the public may address the Board of Retirement regarding any
items within the subject matter jurisdiction of the Board, provided that no action may be taken on nonagendized items unless authorized by law.
BOARD MEMBER COMMENTS
Chair Eley thanked staff for all of their hard work.
CHIEF EXECUTIVE OFFICER/STAFF COMMENTS
COUNSEL COMMENTS
ADJOURNMENT: (IN MEMORY OF THE ACTIVE MEMBERS, RETIRED MEMBERS, AND SURVIVING
SPOUSES WHO PASSED AWAY THIS PAST MONTH)
Active Members
Allen, Francis
Baker, Imogene
Barredo, Federico
Bell, Evelyn
Bishop, Steven
Bowen, Mindy
Chaffin, Jane
Drury, Emory
Fuller, Glenn
Gallegos, Martin
Griffis, Ferol
Herbert, Charles
Hohneker, Gloria
Liao, Nancy
Lumpkin, Doris
Mc Dougal, Dorothy
Murray, Charles
Nelson, Douglas
Nelson, Steven
Pelto, Ernest
Peter, Gilbert
Rand, Debra
Surviving Spouses
Evans, Loretta
Greene, David
Mulholland, Eugene
Sughrue, Dorothy
Reilly, Joan
Ridge, Leslie
Schneider, Juanita
Schroth, Harlan
Snyder, Steven
Strayer, Robert
Wallace, Lucett
Weiss, Daniel
Woockman, Betty
Young, Ilene
Zalewski, Sheila
Orange County Employees Retirement System
May 19, 2014
Regular Board Meeting – Agenda
Page 14
ADJOURNMENT:
There being no further business to bring before the Board, the meeting adjourned at 3:28p.m.
Submitted by:
Approved by:
_________________________
Steve Delaney
Secretary to the Board
____________________________
Frank Eley, Chair