May 23, 2006 – Board Agenda

ii) Fidelity Management Trust Company and Western Asset Management will be interviewed by SamCERA’s Investment Committee. The Investment Committee meets May 22^nd at 2 P.M.

May 23, 2006 – Board Minutes

0605.1

Call to Order: Mr. Lewis, chair, called the Public Session of the Board of Retirement to order at 1:01 p.m., May 23, 2006, in SamCERA’s Board Room, Suite 125, 100 Marine Parkway, Redwood Shores.

0605.2

Roll Call: Mr. Bryan, Mr. Buffington, Mr. Hackleman, Mr. Hooley, Mr. Lewis, Ms. Stuart and Ms. Tashman (arr. 2:12 p.m.). Excused: Ms. Colson and Ms. Salas. Staff: Mr. Bailey, Mr. Clifton, Ms. Dames, Ms. Lamica, Ms. Palu and Ms. Wong. Consultants: Ms. Carlson, Dr. Fracchia, Mr. Thomas. Retirees: 1, County: 1.

0605.3

Approval of the Minutes: Motion by Bryan, second by Hackleman, carried unanimously to approve the board meeting minutes of April 25, 2006, as submitted.

0605.1

Oral Communications From the Board: Ms. Stuart requested that an agenda item considering the nomination of a retiree alternate be added to next month’s board agenda. Mr. Bailey stated that a slate of names recognized by a retiree organization, in this case SCORPA, must be submitted in order to elect a retiree alternate in the midst of the retired trustee’s term. Ms. Stuart stated that a slate of names will be ready at the June board meeting.

Mr. Bryan stated that he attended a conference hosted by the Government Financial Officer’s Association (GFOA) earlier in the month. The conference discussed several interesting topics including economic forecasts, disaster recovery procedures and GASB 43/45. He recommended that interested trustees attend the next conference in June 2007. The conference is scheduled to be held in Anaheim, CA.

Mr. Hackleman and Mr. Bailey attended the SACRS Conference also held earlier in the month. Mr. Hackleman attended the trustee ethics training course and found it to be very informative. Mr. Bailey said that Orange County Employees’ Retirement System had been considering the possibility of joining CalPERS. Actuarial studies and research results were presented at the conference. No material savings from merging with CalPERS were found.

0605.2

Oral Communications From the Public: None.

0605.5

Benefit & Actuarial Services

0605.5.1

Adoption of Consent Calendar: Motion by Bryan, second by Stuart, carried unanimously to adopt the consent calendar, as submitted, as follows:

Disability Retirements:

The board finds that Mary Ganley is disabled from performing her usual and customary duties as a Correctional Officer, and GRANTS her application for a Service-connected disability.

Routine Actions taken by staff pursuant to the board's Delegation of Authority and the Regulations of the Board of Retirement:

Service Retirements:

Baker, Barbara

May 5, 2006

Library Department

Carranza, Genelly

May 5, 2006

Human Services Department

Fena, Peter

May 20, 2006

Probation Department

Mack, Josefina

May 31, 2006

Assessor’s Office

Whipp, Hazel

May 31, 2006

Mental Health Department

Continuance of Benefits:

Lois, Traynor

Beneficiary of Charles

Deferred Retirements:

Astesano, Margaret A.

G4 non vested

Reciprocity

Chun, David W.

G4 non vested

Reciprocity

Douglas, Toby J.

G4 non vested

Reciprocity

Mancia, Monica L.

G4 vested

Reciprocity

Zarganis, Nadine L.

P4 non vested

Reciprocity

Langel, Kim J.

G4 Vested

Extended Purchase:

None

Refunds For May 2006:

Aguayo, Rocio

G4 vested

Bautista, Josephine

G4 non vested

Ho, Peter

G4 non vested

Lacornu, Marybeth

G4 non vested

Miranda, Edward

G4 non vested

Pittet, Anzonette

G4 non vested

Posey, Vida

G4 non vested

Quintero, Virginia

G4 non vested

Saenz, Henry

G4 non vested

Singca, Rowel

G4 non vested

Topete, Norma

G4 non vested

Van Natta, Mary

G1 vested

Williams, Jennifer

G4 non vested

Wulff, Timothy

G4 non vested

Rollovers for May 2006:

Kerr, Alex

G4 non vested

Van Natta, Mary

G1 vested

0605.5.2

Consideration of Items Removed from Consent Agenda: None.

0605.5.3

Introduction to the June 30, 2006, Actuarial Valuation: Mr. Bailey presented a letter from Milliman, the association’s actuary, previewing the actuarial valuation for the period ending June 30, 2006. He stated that Milliman recommends that the valuation be performed using the same assumptions used in SamCERA’s actuarial audit valuation for June 30, 2005. Motion by Hackleman, second by Bryan, carried unanimously to authorize staff and Milliman to begin work on the June 30, 2006, actuarial valuation using the same assumptions recommended by Milliman in its actuarial audit valuation for June 30, 2005.

0605.6

Investment Services

0605.6.1

Monthly Portfolio Performance Report: Mr. Clifton presented the Preliminary Monthly Performance Report for the period ending April 30, 2006. SamCERA’s 1.71% Total Fund Return for April 2006 substantially outperformed the Total Plan Policy Benchmark return of 1.20%. The Fund’s Fiscal Year to Date (FYTD) return, 13.02%, is 640 basis points above the FYTD Actuarial Discount Rate, 6.62%, and 64 basis points above SamCERA’s Total Plan Policy Benchmark of 12.38%.

Mr. Clifton brought to the board’s attention BGI’s outstanding performance in alpha tilts which outperformed the benchmark by nearly 400 basis points. He noted that this remarkable return should be considered unusual and that trustees should not expect such returns in the future. Mr. Thomas stated that BGI uses a systematic quantitative approach and has skillfully applied various factors that have attributed to the out-performance. SIS does not see BGI taking on undue risk to achieve these returns.

Mr. Clifton also reported that SamCERA’s small cap managers have had a good month and that Brandes achieved a notable 3.67% return.

He also said that Julius Baer Investment Management has done a very good job for the association. Mr. Clifton rebalanced the portfolio by transferring $10 million from Julius Baer for operational purposes. Another $10 million will be taken from the BGI Russell 1000 for operational needs before June 30^th. He reminded the board that the County will be transferring their employment contribution pre-payment to SamCERA in the first week of July.

Asset Class

Market Value

1-Month

1-year TTWRR*

5-year TTWRR*

Domestic Equity

$924,457,076

1.65%

21.16%

5.31%

International Equity

312,922,854

5.59%

38.36%

8.69%

Total Equity

$1,237,379,931

2.62%

25.13%

6.11%

Fixed Income

492,893,031

-0.12%

1.39%

5.68%

Real Estate Aggregate

110,629,335

0.00%

21.06%

13.09%

Cash Equivalents

5,542,018

0.34%

3.45%

2.89%

Total Fund

$1,846,444,315

1.71%

17.46%

7.03%

Benchmark

1.20%

16.68%

6.68%

* Total Time-Weighted Rate of Return

0605.6.2

Quarterly Investment Performance Analysis for Period Ended March 31, 2006: Mr. Thomas reviewed the investment performance for the first quarter. He noted that BGI’s cumulative performance has been extraordinary. As opposed to BGI, Brandes has performed poorly as they take on a lot of risk. Overall, the first quarter was horrible for Brandes but SIS is not overly concerned. Brandes’ large bet on the auto parts sector has hurt their performance, however, their 4% turn-around in April is encouraging. Indications point to the same positive returns for the month of May in the Brandes portfolio. Mr. Thomas also mentioned that Chartwell and Julius Baer both had good quarters for the fund. He sees the plan performing as strategized with no surprises in performances.

Mr. Clifton reported that the Investment committee recommended changes to SIS’ report for next quarter. The Russell 1000 benchmark will be added to the small cap manager comparison regardless of style and style benchmarks will be added to the international manager comparison.

In response to a question from Mr. Lewis, Mr. Thomas stated that the negative dispersion between SamCERA’s GSAM separate account and the composite has improved. For the quarter, SamCERA’s separate account outperformed the composite by 40 basis points. SIS will still continue to monitor GSAM’s residual stock effect.

March 31, 2006	Last Quarter		One Year		Last 3 Years
March 31, 2006	Return	Rank	Return	Rank	Return	Rank
Composite Fund	4.80%	43	13.66%	51	16.59%	42
Policy Index	4.65%	53	13.81%	50	16.81%	38
BGI Russell 1000 Alpha Tilts	4.98%	34	15.89%	28	N/A	N/A
BGI Russell 1000 Index Fund	4.51%	43	13.24%	57	18.34%	59
Large Cap Composite	4.75%	37	14.58%	45	19.26%	48
Russell 1000 Index	4.49%	44	13.20%	57	18.30%	59
Brandes Investment Partners	4.88%	99	6.56%	100	N/A	N/A
Chartwell Investment Partners	14.76%	19	26.65%	37	N/A	N/A
Goldman Sachs Asset Management	12.51%	44	22.73%	58	N/A	N/A
Small Cap Composite	11.20%	62	19.55%	80	28.10%	58
Russell 2000 Index	13.94%	27	25.85%	42	29.53%	43
U.S. Equity Composite	6.02%	47	15.61%	53	21.00%	56
Julius Baer Asset Management	12.36%	10	31.97%	17	N/A	N/A
Mondrian Investment Partners	8.47%	65	22.90%	69	N/A	N/A
International Equity Composite	10.46%	26	27.44%	46	29.95%	73
MSCI ACWI-ex US Index Free	9.76%	42	28.13%	42	33.51%	27
Total Equity Composite	7.07%		18.35%		23.04%
Aberdeen Asset Management	-0.42%	49	2.72%	43	3.91%	29
Fidelity Management Trust Co.	N/A	N/A	N/A	N/A	N/A	N/A
Western Asset Management	-0.17%	18	3.60%	6	N/A	N/A
U.S. Fixed Income Composite	-0.46%	73	2.91%	46	3.59%	51
Lehman Aggregate Index	-0.65%	86	2.26%	84	2.92%	71
INVESCO Core Fund	5.49%	27	21.07%	37	N/A	N/A
Real Estate Composite	5.49%	27	21.06%	37	17.03%	29
NCREIF Index	3.62%	55	20.19%	43	15.07%	43
Cash Composite	0.93%	74	3.34%	70	2.84%	13
91 Day T-Bill Index	1.02%	54	3.53%	52	2.09%	47

0605.6.3

Annual Review of SamCERA’s Fixed Income Asset Class and Investment Managers:

Mr. Clifton gave a brief overview of the two annual investment manager reviews that were held at the investment committee.

0605.6.3a

Annual Investment Manager Review – Fidelity Management Trust Company

(Interviewed By The Investment Committee on May 22^nd)—

Mr. Clifton reported that Art Greenwood, Senior Vice President, Sales, Dan Tremblay, Vice President, Fixed Income Investment Director, and Chris Pariseault, Investment Director, were present for Fidelity Management Trust Company’s annual review.

He stated that they discussed the establishment of Pyramis Global Advisors as a subsidiary to the Fidelity group in order to heighten the focus on institutional asset management and make a clear distinction from Fidelity’s mutual fund business. The transition should be largely transparent and no changes to SamCERA’s investment management team will occur.

Mr. Thomas noted that Fidelity has had an ongoing issue in the institutional market with criticism towards the relative importance of institutional clients in terms of service. To address this issue, Fidelity wanted to make a clear distinction between its institutional and mutual fund businesses. Mr. Thomas said that, with regards to fixed income, this transition is merely a name change. On the equity side, however, the change is a bit more of an issue.

Mr. Clifton stated that the investment committee did not have many issues with Fidelity since SamCERA has only been with the manager for three months. So far, they have outperformed other managers in the fixed income asset class.

0605.6.3b

Annual Investment Manager Review – Western Asset Management

(Interviewed By The Investment Committee on May 22^nd)

Mr. Clifton reported that Andre Cuerington, Client Service Executive, and Donald Plotsky, Product Specialist, were present for Western Asset Management’s annual review.

He stated that Western has produced good returns for SamCERA since inception and is pleased with the manager’s performance. The only major event that has occurred in the past year was the separation of some Russian securities to a non-dollar LLC from the emerging market portfolio.

At the end of Western’s review, Mr. Plotsky provided the investment committee with an educational workshop on an absolute return strategy and Western’s product. Mr. Clifton opined that the seminar was well received by the members on the investment committee who found the information useful. However, Mr. Bryan stated that the committee will probably not recommend the strategy any time in the near future.

0605.6.3c

Annual Investment Manager Review – Aberdeen Asset Management

(Interviewed By The Board )

Chris Gagnier, Senior Portfolio Manager, and Boris Karol, Portfolio Manager, were present for Aberdeen Asset Management’s annual review.

Mr. Gagnier reviewed the organizational changes with Aberdeen’s acquisition of the Deustche Asset Management fixed income group. He stated that Aberdeen had a strong equity side but did not have locations in the United States involved in fixed income. He stated that the merger was a nice match since there was a significant amount of diversification from both parties’ standpoints. Since Aberdeen did not have fixed income, there were no overlapping or integration issues.

In response to a question from Mr. Clifton, Mr. Gagnier stated that not much has changed in terms of his responsibilities. He said that Mr. Karol and other portfolio managers have taken operating issues out of his hands so he is still able to focus on investing. Since they did not bring the high-yield team to Aberdeen, in terms of the areas he is covering in fixed income market, he has had to integrate high-yield with the core plus team. His office has added two research analysts for high yield.

Mr. Karol stated that there have been no departures with the transition to Aberdeen. They have implemented a new compensation scheme which was similar to Deutsche’s. However, retention packages have been put in place for the entire team, as opposed to the six senior portfolio managers. Incentive compensation in terms of stock and cash rewards is graded to three years. Mr. Lewis expressed concern regarding this three-year limitation. Mr. Thomas agreed by saying that the board should monitor turnover over the next three years.

Mr. Gagnier also performed a review of the market and portfolio performance.

0605.6.4

Introduction to a Review of SamCERA’s Investment Management Agreement (IMA): At the January board meeting, the board directed staff to perform a review of SamCERA’s boilerplate Investment Management Agreement (IMA) with the objective to update SamCERA’s current IMA. Mr. Clifton presented a draft of a suggested boilerplate agreement. One of SamCERA’s peer models was LACERA’s IMA. He reported that the investment committee opined that the new IMA is more clear and much more easy to read than the former IMA. Mr. Clifton solicited comments from trustees. He will come back with a pre-final draft of the agreement in August. Ms. Carlson will go over the IMA with members of the investment committee, paragraph by paragraph. She will cross-reference where topics in the old agreement are located in the new agreement.

0605.6.5

Approval to Implement Security Lending: At the previous board meeting, staff was asked to gain additional information from State Street to clarify issues regarding the proposed securities lending program. Mr. Clifton and SIS held a conference call with State Street to discuss these issues. Mr. Clifton stated that they discussed State Street’s Quality-D pool, the second to most conservative pool. He opined that the guidelines of this pool were too broad. It is the recommendation of the investment committee to go with the most conservative fund. State Street has also agreed to the 70% / 30% split. The move from the Quality-D pool to the most conservative pool will reduce SamCERA’s initial estimated income provided by State Street by approximately $50,000. The estimated revenue will now be approximately $450,000 – 500,000. The investment committee recommended that the board move on to the next step, acquiring documentation in July or August to execute the securities lending program.

Mr. Thomas stated that SamCERA certainly needs to look at the risk of the securities lending program. He said that SIS is comfortable with the risk-averse guidelines set forth in the most conservative pool. He also stated that State Street is a respectable vendor and that the 70% / 30% is a good split.

With the board’s approval of the Investment Analyst position last fall, Mr. Clifton stated that the additional workload from securities lending will not be an issue for staff. He also said that the income of the program will be 18 - 22% of SamCERA’s administrative budget.

Mr. Buffington stated that the county’s treasurer’s office only takes cash collateral in their securities lending program. The treasurer’s program also marks to market at 102% on a daily basis and only lends to large borrowers and not hedge funds. He is comfortable with SamCERA’s participation in securities lending depending on the quality of borrowers and the size of the reinvesting pool. He stated that transparency via reports should be available on a daily basis and reasonable fees on collateral investment should also be looked into.

Mr. Clifton will return to the board at the July or August board meeting with documentation that address all of the issues presented at today’s meeting.

0605.6.6

Approval of Topics for the Investment Consultant Review – Strategic Investment Solutions: Mr. Clifton collected SIS evaluation forms from trustees. He also asked that board members forward any additional questions for SIS’ review to him.

0605.6.7

Approval to Execute Documentation with Pyramis Group Trust (Fidelity Management Trust Company): Fidelity established Pyramis Global Advisors as a separate subsidiary in 2005 to focus exclusively on delivering investment products and services that would appropriately meet the needs of its institutional clients. Mr. Clifton reported that the investment committee reviewed and discussed the documentation that will allow SamCERA plan assets to be transferred from the Fidelity Group Trust to a corresponding commingled pool in the Pyramis Group Trust. The investment committee recommended that the board approve the documentation.

Motion by Bryan, second by Hackleman, carried unanimously to adopt Resolution 05-06-08, approving the contract between the board and Pyramis Global Advisors Trust Company, as follows:

“Whereas, Article XVI, §17 of the Constitution of the State of California vests the board with "plenary authority and fiduciary responsibility for the investment of moneys and the administration of the system"; and

“Whereas, Government Code §31595 vests in the board ". . . exclusive control of the investment of the employees retirement fund."; and

“Whereas, Government Code §31596.1 (d) authorizes the board to retain investment managers ". . . in connection with administration of the board's investment program . . . "; and

“Whereas, on September 27, 2005, the board considered proposals from six firms for investment management services under an enhanced fixed income mandate. Baird Advisors, Barclays Global Investors, and Smith Breeden Associates were eliminated. BlackRock, Fidelity Management Trust Company, and Lehman Brothers Asset Management were invited to return for a second interview as finalists; and

“Whereas, the board interviewed representatives from all three firms on October 25, 2005, before offering Fidelity Management Trust Company SamCERA’s enhanced fixed income mandate to be funded with approximately $165 million; and

“Whereas, SamCERA executed a Participant Agreement with the Fidelity Group Trust for Employee Benefit Plans; and

“Whereas, Fidelity Management Trust Company established Pyramis Global Advisors as a separate subsidiary in 2005 and also established Pyramis Global Advisors Trust Company. A New Hampshire trust company to deliver investment products and services that meet the needs of institutional Clients; and

“Whereas, effective October 1, 2006, Fidelity Group Trust will to transfer plan assets from the Fidelity Group Trust to the corresponding commingled pool in the Pyramis Group Trust. Therefore, be it

“Resolved that the board hereby approves the contract between the board and Pyramis Global Advisors Trust Company. The board or Pyramis Global Advisors Trust Company may terminate the contract on thirty days written notice. Be it further

“Resolved that the board hereby delegates full discretionary authority to Pyramis Global Advisors Trust Company to manage the assets of the retirement fund as allocated by the board in accordance with the terms of the contract, and applicable law governing the conduct of fiduciaries entrusted with the management of public employees' retirement funds. Be it further

“Resolved that the board hereby approves the fees as specified in the contract and authorizes the disbursement of funds as provided for in GC§31596.1 in accordance with SamCERA's internal controls. Be it further

“Resolved that the board hereby authorizes the chair to execute the contract on behalf of the board. Be it further

“Resolved that the board hereby designates the Investment & Finance Manager as its designee to perform those functions so identified in the contract and hereby authorizes the Investment & Finance Manager to take all actions necessary to initiate, implement and monitor assignments, approve payments and provide the board with timely reports regarding the progress and satisfactory completion of the assignments authorized pursuant to the contract.”

0605.6.8

Report on the Strategic Investment Solutions’ Capital Market Outlook: Mr. Clifton reviewed SIS’ semi-annual capital market outlook report. Mr. Clifton stated that there has been virtually no change since the last report. Expected return increased slightly from 7.9% to 8.0% with a minor decreased in expected risk from 11.5% to 10.8%.

SIS reviews capital market assumptions every October and April. Mr. Clifton stated that an asset allocation study is scheduled to occur in Spring 2007. SIS will also provide an educational presentation on private equity in front of the entire board this fall.

0605.7

Board & Management Support Services

0605.7.1

Monthly Financial Reports: Mr. Clifton presented the preliminary monthly financial report for the period ending April 30, 2006. SamCERA’s Net Assets Held in Trust for the period totaled $1,836,611,463.

0605.7.2

Report on Fiduciary Insurance: Mr. Clifton reported that SamCERA has paid the invoice from the association’s fiduciary liability insurance carrier which amounted to $75,000. This represents no increase over the current policy. The new policy is effective through May 27, 2007.

0605.7.3

Approval of SamCERA’s Sources, Uses & Budget for Fiscal year 2006/2007: Mr. Clifton reviewed the principal budget initiatives for next fiscal year. Mr. Hackleman asked about the estimated cost associated with the attainment of a retiree alternate. Mr. Clifton stated the cost has not been reflected on the budget, but it will be $10,000 for first two years and $5,000 for the 3^rd year. The cost for the safety alternate has been added to the budget. Mr. Buffington requested that the budget be amended to clarify the twelve hours of overtime budgeted each week is for the entire office, and not for each employee. There has been approximately $100,000 budgeted for the acquisition of new office space. The actual cost is still unknown.

Motion by Bryan, second by Hackleman, carried unanimously, to adopt Resolution 05-06-09, as amended, as follows:

“Whereas, Government Code §31580.2 vests authority in the Board of Retirement to ...annually adopt a budget covering the entire expense of administration of the retirement system which expense shall be charged against the earnings of the retirement fund; and

“Whereas, Government Code §31580.2 requires that ...the expense incurred in any year shall not exceed eighteen-hundredths of 1 percent of the total assets of the retirement system; and

“Whereas, the Retirement Fund had total assets with a market value of approximately $1,846.4 million on April 30, 2006; and

“Whereas, the Investment & Finance Manager has recommended a budget for the next fiscal year, which the Board has reviewed and revised as necessary. Therefore, be it

“Resolved, that the Board hereby adopts the following Budget to cover the entire expense of the administration of the retirement system for the period specified, which expenses shall be charged against the earnings of the retirement fund:

Budget Item

Fiscal 2006-2007

Basis Points

(000)

(Information Only)

Salaries & Benefits

$1, 692.5

Services & Supplies

1,087.5

Fixed Assets

100.0

TOTAL

$2,880.0

~14.4 Estimate

“Resolved, that the Chief Executive Officer is hereby authorized to implement the expenditure of funds authorized by this approved Budget in accordance with his Delegation of Authority; be it further

“Resolved, that, his Delegation of Authority notwithstanding, the Chief Executive Officer is hereby specifically authorized to approve the expenditure of funds from this budget for the annual maintenance and enhancement of PensionGold Version 1; be it further

“Resolved, that, his Delegation of Authority notwithstanding, the Chief Executive Officer is hereby specifically authorized to approve the expenditure of funds from this budget for the purchase fiduciary liability insurance coverage with the assistance of the County’s Risk Manager; be it further

“Resolved, that the Controller or the Custodian is hereby authorized to disburse funds on behalf of the Board for expenditures which are in accordance with this adopted Budget.”

0605.7.4

Introduction to SamCERA’s Travel Policy: SamCERA’s auditor, Brown Armstrong, recommended developing a written travel policy that details allowable expenses, limitations on methods of transportations, hotel rates, etc. to withstand scrutiny from outside parties. Staff developed a policy and integrated it with the county’s travel policy. Mr. Clifton presented a draft travel policy and requested any comments from trustees to improve the policy. Ms. Carlson reviewed some portions of the policy. Staff will bring the policy back in July for approval.

0605.7.5

Approval of Office Space Option: Mr. Bailey stated that he would like the business owner of the office space adjacent to SamCERA’s current office to sign a letter of intent which will set a time certain when the space will be leased to SamCERA. Mr. Clifton and Mr. Bailey are scheduled to meet with her on June 5^th to discuss such an agreement. As an aside, Mr. Bailey stated that Mr. Hood will return to the office at end of June.

0605.7.6

Report on Trustee Election to Fill Second and Seventh Seats on the Board of Retirement: Mr. Bailey reported on the status of the trustee election to fill the second and seventh seats on the Board of Retirement. The elections division certified the following candidates to have their names placed on the ballot for the June 12^th election:

Second Member: Paul Hackleman and Lee Lazaro

Seventh Member: Alma Salas, Victoria O’Brien and David Wozniak.

Ballots will be mailed between May 19^th and May 26^th. The Chief Elections Officer will certify results of the election no later than June 16^th.

0605.7.7

Appointment of Ad Hoc Nominating Committee for Board Officers: Mr. Lewis appointed Ms. Stuart, chair, Mr. Hackleman, Ms. Salas and Ms. Colson to the Ad Hoc Nominating Committee and instructed them to present a slate of officers for the Board’s consideration at the June board meeting. Board officers will be voted on at the July board meeting.

0605.8

Management Reports

0605.8.1

Chief Executive Officer's Report: Mr. Bailey has spoken with Bob Blum, tax advisor, Mr. Hood and Mr. McCausland on SamCERA’s practice of deducting health insurance premiums on a pre-tax basis. He also surveyed other 1937 Act systems at the recent SACRS conference.

Mr. Bailey stated that he has spoken with other department managers in the county to discuss the county’s proposal to invest funds set aside for retiree health insurance with SamCERA. SACRS is currently drafting legislation to permit retirement boards to do this.

Mr. Bailey reported that the Board of Supervisors approved the actuarial rates at their meeting earlier in the day. He also noted that the Board of Supervisors reappointed Mr. Hooley and Ms. Tashman to their seats on the Board of Retirement.

0605.8.2

Investment & Finance Manager’s Report: None.

0605.8.3

County Counsel's Report: None.

0605.9

Report on Actions Taken in Closed Session: None.

0605.10

Adjournment in Memory of the following Deceased Members: There being no further business, Mr. Lewis adjourned the meeting at 3:28 p.m., in memory of the following deceased members:

Pugh, Grace

February 13, 2006

Beneficiary Of Frances

Keyworth, Anna

April 8, 2006

County Clerks Office

Traynor, Charles

April 17, 2006

Sheriff’s Department

Papka, Rachel

April 19, 2006

San Mateo County Medical Center

Walsted, Sophia

April 19, 2006

San Mateo County Medical Center

Kruse, Irene

April 26, 2006

Human Services Agency

Acorn, Luella

April 29, 2006

San Mateo County Municipal Court

Joseph, Marguerite

May 3, 2006

Department Of Public Works

Ver-Linden, Emma

May 4, 2006

Controller’s Office

Kenneth A. Lewis, Chair

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Minutes Index

May 23, 2006 – Board Agenda

May 23, 2006 – Board Minutes

Domestic Equity

Composite Fund