ABOUT LACERA

INSURANCE, BENEFITS & LEGISLATIVE COMMITTEE MINUTES 8-13-09

PRESENT

• Simon S. Russin, Vice Chair
• Edward L. Blecksmith
• Ed C. Morris
• James P. Harris, Alternate

ABSENT

• William de la Garza, Chair

ALSO ATTENDING:

BOARD MEMBERS AT LARGE

• Sadonya Antebi
• Yves Chery
• Les Robbins

STAFF, ADVISORS, PARTICIPANTS

• Lita Payne
• Leilani Ignacio
• Cynthia Lau
• JJ Popowich

• Mercer Human Resource Consulting
• Clay Levister
• Laurie Silva

The meeting was called to order by Chairman Russin at 10:45 a.m.

1. APPOINTMENT OF VOTING MEMBER(S) IN THE EVENT ONE OR MORE REGULAR COMMITTEE MEMBERS ARE ABSENT

   The Chair appointed Mr. Harris a voting member of the Committee.

2. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF JULY 9, 2009

   A motion was made by Mr. Morris, seconded by Mr. Harris, to approve the minutes of the regular meeting of July 9, 2009.

   The motion passed unanimously.

3. ACTION ITEMS
   1. Retiree Health Care Benefits Program Consultant Request for Proposal

      The current contract with Mercer, our Retiree Health Care Benefits Program Consultant, will expire on June 30, 2010, at the end of five years. Staff is requesting authorization to advertise a Request for Proposal (RFP) to select an appropriate firm to provide the required services. While the services we are seeking are substantially similar to those being provided on our current contract, some changes have been made to the request for proposal.

      • Audits – future audits will be paid directly by LACERA instead of payments being embedded into the contract.
      • Fee Proposal – each bidder will submit two fee proposals – a fixed fee and a monthly retainer.

      Our current practice uses a monthly retainer fee approach. The RFP Evaluation Team, made up of four LACERA staff members, will be responsible for reviewing all submissions, determining finalists if applicable, and providing a recommendation to the Committee. We expect to bring bidder presentations to the Committee in January, 2010, with Board of Retirement approval at the February, 2010 meeting. The new contract effective date will be July 1, 2010.

      Recommendation: Authorize the Retiree Health Care Director to perform a Request for Proposal (RFP) process to find a Retiree Health Care Benefits Program Consultant.

      A motion was made by Mr. Morris, seconded by Mr. Harris, to approve the recommendation.

      The motion passed unanimously.

   2. Recommend the Board of Retirement adopt a “Watch” position on Senate Bill 54 relating to treatment of same-sex marriages outside of California.

      A motion was made by Mr. Morris, seconded by Mr. Harris, to approve the recommendation.

      The motion passed unanimously.

   3. Recommend the Board of Retirement adopt a “Watch” position on Senate Bill 752, which would authorize a hybrid retirement plan for Orange County.

      A motion was made by Mr. Morris, seconded by Mr. Harris, to approve the recommendation.

      The motion passed unanimously.

4. FOR INFORMATION
   1. Staff Activities Report for July, 2009

      The staff activities report was discussed.

   2. CIGNA & Anthem Blue Cross Claims Experience

      The CIGNA & Anthem Blue Cross Claims Experience reports through June, 2009 were discussed.

   3. Federal Legislation
      • • Weekly Highlights – July 27, 2009
      • • Weekly Highlights – July 20, 2009
      • • Weekly Highlights – July 13, 2009
      • • Weekly Highlights – July 6 2009

      Submitted for information only.

5. MISCELLANEOUS
6. PUBLIC COMMENT
7. GOOD OF THE ORDER

   (For discussion purposes only)

8. ADJOURNMENT

Documents subject to public disclosure that relate to an agenda item for an open session of the Board of Investments that are distributed to members of the Board of Investments less than 72 hours prior to the meeting will be available for public inspection at the time they are distributed to a majority of the Board of Investments Members at LACERA’s offices at 300 N. Lake Avenue, Suite 820, Pasadena, CA 91101, during normal business hours of 9:00 a.m. to 5:00 p.m. Monday through Friday.

Listening Devices are available at days notice before the meeting date. Persons requiring an alternative format of this public notice pursuant to Section 202 of the Americans with Disabilities Act of 1990 may request one by contacting Cynthia Guider at (626) 564-6000, x3327 from 8:30 a.m. to 5:00 p.m. Monday through Friday, but no later than 48 hours prior to the time the meeting is to commence.

9/10/09