BOARD OF DIRECTORS MEETING
May 22-23, 2014
2:00 p.m.
Or Upon Adjournment or Recess of the Investment Committee Meeting, Whichever is Later
Sheraton Grand Hotel
1230 J Street, Sacramento, CA 95814
BOARD MEMBERS
Sheryl A. Chalupa, Chair
Robin Baker
Daniel M. Curtin
Marvin Kropke
Sen. Michael J. Machado (Ret.)
Lawrence E. Mulryan
Jack Neureuter
Steven L. Rank
Thomas E. Rankin
Scott K. Reid
William M. Zachry
Christine Baker (Ex-Officio)
| OPEN SESSION | Thursday, May 22, 2014 @ 2:00 pm | |
| Action/Sheryl Chalupa | 1. | Call to Order and Roll Call |
| Information/Sheryl Chalupa | 2. | Antitrust Admonition |
| Action/Sheryl Chalupa | 3. | Consent Calendar1 |
a. |
Approval of February 20-21, 2014 and April 3-4, 2014 Open Meeting Minutes | |
b. |
Board Member Educational Opportunities and Approval of Planned Board Member Education and Expense Reimbursement | |
c. |
Renewal of Expiring 3rd Quarter Insurance Policies | |
d. |
Annual Review and Approval of State Fund By-Laws | |
e. |
Annual Review and Approval of Committee Charters | |
f. |
Annual Review and Approval of Board Delegated Authority and Approval Levels | |
g. |
Approval of Retirement Resolutions (originals available for signature at meeting) |
|
| Information/Andreas Acker | 4. | Staffing Update |
a. |
Staffing | |
b. |
Employee Leave Balance and Usage | |
| Information/Peter Guastamachio | 5. | Financial Update – 1st Quarter 2014 |
| Information/Rhonda Myers | 6. | Legislative Update |
| Information/Milliman | 7. | Statement of Actuarial Opinion |
| Information/Carol Newman | 8. | Interim President’s Report |
| 9. | Reports by the Chairs of Committee Activities | |
| Action/Lawrence Mulryan | a. |
Governance Committee |
i. |
Governance and Compliance Update | |
| Information/Sheryl Chalupa | b. |
Audit Committee |
i. |
Update on Completed Closed Audits | |
| Action/Michael Machado | c. |
Investment Committee |
i. |
Bond Transactions and Compliance Report | |
| Information/Sheryl Chalupa | 10. | Chairperson’s Report |
| Information | 11. | Board Member Reports |
| Information/Sheryl Chalupa | 12. | Public Comment on Appropriateness of Closed Session for items 15 through 26. |
| Information/Sheryl Chalupa | 13. | Public Comment |
CLOSED SESSION |
||
| Action/Sheryl Chalupa | 14. | Approval of February 20-21, 2014 and April 4, 2014 Closed Meeting Minutes |
| Information/Ken Van Laar and Milliman | 15. | Independent Actuarial Reserve Report [Government Code Section 11126 (j)(4)] |
| Information/Carol Newman and Peter Guastamachio | 16. | Update on Strategic Plan 2014-2016 [Government Code Section 11126 (j)(4)] |
| Information/Sheryl Chalupa, Carol Newman and Andreas Acker | 17. | Governance Considerations Related to the Strategic Plan: Human Resources Strategic Planning [Government Code Sections 11126 (a), (j)(4)] |
a. |
Improvement Management Office Strategic Update | |
b. |
Staffing, Leadership and Succession Planning | |
c. |
Executive Search Update | |
| Information/Beatriz Sanchez and Marjorie Hutchings | 18. | Update on Claims Strategic Optimization Plan [Government Code Section 11126 (j)(4)] |
| CLOSED SESSION | Friday, May 23, 2014 @ 8:30 am | |
| Information/Marjorie Hutchings | 19. | Update on IT Strategic Optimization Plan [Government Code Section 11126 (j)(4)] |
| Information/Ken Van Laar | 20. | Enterprise Risk Management Update [Government Code Section 11126 (j)(4)] |
| Action/Ken Van Laar | 21. | Reinsurance and Insurance Strategy Update [Government Code Section 11126(e)(1), (j)(4)] |
| Information/Darlyn Regan and Lauren Mayfield | 22. | Workplace Safety Strategy [Government Code Section 11126 (j)(4)] |
| Information/Sheryl Chalupa and Carol Newman | 23. | Planning for Board Strategic Meeting [Government Code Section 11126 (j)(4)] |
| Information/Sheryl Chalupa | 24. | Significant Open Audits Report and Fraud Litigation Report [Government Code Sections 11126(e), (j)(2), (3) and (4)] |
| Information/Michael Machado | 25. | Financial and Investment Considerations Related to the Strategic Plan [Government Code Section 11126(j)(4)] |
| Information/Lisa Stolzy | 26. | Pending and Potential Litigation [Government Code Sections 11126(e), (j)(4)] |
a. |
ANGELOTTI CHIROPRACTIC INC., et al. v. EDMUND G. BROWN, JR., et al.; U.S. Court of Appeal for the 9th Circuit Case No. 13-56996; U.S. District Court for the Central District of California (Los Angeles), Case No. SACVB-1139-GW (JEM). | |
b. |
CHORN v. BROWN, et al., Los Angeles Superior Court Case No. BC528190. | |
c. |
DUBON v. WORLD RESTORATION, INC. and STATE COMPENSATION INSURANCE FUND, Workers' Compensation Appeals Board control/reconsideration unit (San Francisco) Case No. ADJ4274323 and ADJ1601669 | |
d. |
FRANCES STEVENS v. OUTSPOKEN ENTERPRISES, INC. and STATE COMPENSATION INSURANCE FUND, First District Court of Appeal, Division One (San Francisco) Case No. A141435; Workers' Compensation Appeals Board Case No. ADJ1526353 | |
e. |
(KHAN, ZAKS) STATE COMPENSATION INSURANCE FUND v. SANA ULLAH KHAN, ALEXANDER ZAKS, BRUCE MC INTYRE ROTH et al.; U.S. District Court, Central District of California, Case No. SACV12-01072 JST (MLGx). | |
f. |
(PACIFIC HOSPITAL LONG BEACH); STATE COMPENSATION INSURANCE FUND v. MICHAEL D. DROBOT SR. et al U.S. District Court, Central District of California, Case No. 8:13-CV-00956-AG-CW. | |
g. |
(LEHMAN BROTHERS) STATE COMPENSATION INSURANCE FUND v. RICHARD S. FULD, et al.; U.S. District Court, Southern District of New York, Case No. CV11-2400 EMC. | |
h. |
SEWELL (ANDREA), CONRAD SILVA and EDITH VIERA v. STATE COMPENSATION INSURANCE FUND; U.S. District Court, Northern District of California, Case No. C13-0588. | |
i. |
HABLIAN, et al. v. ZURICH, et al.; Van Nuys WCAB Case No. VNO 403 724 | |
j. |
CALIFORNIA SELF-INSURERS’ SECURITY FUND V. BLUE LAKE RANCHERIA, et al.; Sacramento County Superior Court Case No. 34-2011-0011-2628 | |
| OPEN SESSION | May 23, 2014 @ 11:00 or upon adjournment or recess of the Closed Session, whichever is later | |
| Action/Sheryl Chalupa | 27. | Call to Order and Roll Call |
| Information/Sheryl Chalupa | 28. | Proposals and Suggestions for September 24, 2014 Agenda |
| Next Board Meeting: September 24, 2014 at the Hyatt Regency, Monterey. Will also hold Strategic meeting on September 25-26, 2014. | ||
| 1 Items on the Consent Calendar include routine actions or matters already considered by a committee of the Board and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Board Member or the public so requests. It is in the Board’s discretion to remove items already considered by a committee of the Board from the Consent Calendar. Any item removed from the Consent Calendar will be considered in its normal sequence on the agenda. If you wish to have an item removed from the Consent Calendar, please submit a speaker card or make your request at the time the Board Chairperson asks if any member of the public wishes to remove an item from consent. After an item, if any, removed from the Consent Calendar has been discussed, the Board will vote to approve all items remaining on the Consent Calendar. | ||
| Note: Items designated for information are appropriate for Board/Committee action if the Board/Committee wishes to take action. Any agenda item from a properly noticed Committee meeting held immediately prior to the Board meeting may be considered by the Board. Agenda items may be taken out of order with the approval of the Chairperson. Public comment will be limited to three (3) minutes per speaker and ten (10) minutes per subject item. | ||
