ABOUT LACERA

INSURANCE, BENEFITS & LEGISLATIVE COMMITTEE MINUTES 2-11-10

PRESENT

• Les Robbins, Chair
• Edward L. Blecksmith
• Simon S. Russin

ABSENT

• William de la Garza, Vice Chair
• Will Pryor, Alternate

ALSO ATTENDING:

BOARD MEMBERS AT LARGE

• Yves Chery
• James P. Harris
• Ed C. Morris

STAFF, ADVISORS, PARTICIPANTS

• Robert Hill
• Leilani Ignacio
• Cassandra Smith

• Mercer Human Resource Consulting
• Clay Levister
• Laurie Silva

The meeting was called to order by Chairman Robbins at 10:20 a.m.

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

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

2. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF JANUARY 14, 2010

   A motion was made by Mr. Russin, seconded by Mr. Blecksmith, to approve the minutes of the regular meeting of January 14, 2010.

   The motion passed unanimously.

3. FOR INFORMATION
   1. Recruitment Timeline for Retiree Health Care Director

      Robert Hill presented a timeline for the recruitment of the Retiree Health Care Benefits Director, using the executive search firm of Ralph Andersen & Associates. The recruitment process is planned to take approximately six months and is scheduled to finish in June. The timeline has three phases:

      • Beginning Recruitment Process - January, 2010. This has already started and is advancing smoothly. The Recruitment Brochure is being updated and finalized.
      • Recruiters Solicitation Opens - March 2, 2010. The recruitment period will be open for approximately eight weeks.
      • Recruitment Closes - April 30, 2010.

      Candidates will be screened and interviewed. Finalists will be presented to LACERA for final selection.

   2. Staff Activities Report for January, 2010

      The staff activities report was discussed.

   3. CIGNA & Anthem Blue Cross Claims Experience

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

   4. Update on Renewal Process

      Mercer presented an update on the annual renewal. After meeting with the carriers this week, we are currently looking at an overall increase of 6%. The Kaiser pre-Medicare and Senior Advantage came in much less than expected. CIGNA Medical is high, with an increase of 17%. Potentially, there will be some further reductions in the Anthem Blue Cross plans by the time the renewal is brought to the Committee in March.

   5. Federal Legislation
      • Weekly Highlights - January 25, 2010
      • Weekly Highlights - January 19, 2010
      • Weekly Highlights - January 11, 2010
      • Weekly Highlights - January 4, 2010

      Submitted for information only.

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

   (For discussion purposes only)

7. ADJOURNMENT

2/11/10