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STATE COMPENSATION INSURANCE FUND
BOARD OF DIRECTORS

BOARD OF DIRECTORS MEETING

May 24-25, 2018
1:30 p.m.

Or Upon Adjournment or Recess of the
Investment and Risk Committee Meeting, Whichever is Later

State Compensation Insurance Fund
5890 Owens Drive
Pleasanton, CA 94588

BOARD MEMBERS
Sheryl A. Chalupa, Chair
Robin L. Baker
Daniel M. Curtin
Marvin P. Kropke
Sen. Michael J. Machado (Ret.)
Lawrence E. Mulryan
Jack L. Neureuter
Steven L. Rank
Thomas E. Rankin
Scott K. Reid
William M. Zachry
David Lanier (Ex-Officio)

AGENDA

OPEN SESSION	Thursday, May 24, 2018 @ 1:30 p.m.
Action/Sheryl Chalupa	1.	Call to Order and Roll Call

Action/Sheryl Chalupa	2.	Antitrust Admonition

Action/Sheryl Chalupa	3.	Consent Calendar¹
	Approval of February 22-23, 2018 Open Meeting Minutes Board Member Educational Opportunities and Approval of Planned Board Member Education and Expense Reimbursement Annual Review and Approval of State Fund By-Laws Annual Review and Approval of Board Delegated Authority and Approval Levels Annual Review and Approval of Board Education and Travel Expense Reimbursement Policy Annual Review and Approval of Committee Charters Approval of Revised Board and Committee 2018 Agenda Items Ratification of Appointment of Chief Investment Officer Authorization to Secure Renewal of the September 2018 Expiring Policies Approval of Investment Policy Statement and Guidelines Approval of Retirement Resolutions (originals available for signature at meeting)

Information/Milliman	4.	Statement of Actuarial Opinion

Information/Sheryl Chalupa	5.	Public Comment on Appropriateness of Closed Session for Items 8 through 21

Information/Sheryl Chalupa	6.	Public Comment

CLOSED SESSION

Action/Sheryl Chalupa	7.	Approval of February 22-23, 2018 Closed Meeting Minutes

Information/Milliman	8.	Independent Actuarial Reserve Report [Government Code Section 11126(j)(4)]

Information/Executive Committee	9.	Update on 2018-2020 Strategic Plan [Government Code Section 11126(j)(4)]
	Pricing Strategy

Information/Kevin Harnetiaux	10.	Field Operations Strategic Plan [Government Code Section 11126(j)(4)]

Information/Stephanie Saavedra	11.	Premium Audit Strategic Plan [Government Code Section 11126(j)(4)]

Information/Aaron Nelson	12.	Customer Experience Strategic Plan [Government Code Section 11126(j)(4)]

Information/Sheryl Chalupa	13.	Human Resources Strategic Plan [Government Code Sections 11126(a), (j)(4)]
	Executive Compensation and Long-Term Incentive Plan

CLOSED SESSION		Friday, May 25, 2018

Information/Joan Markoff and Carla Anene	14.	State Contracts Strategic Plan [Government Code Section 11126(j)(4)]

Information/Dante Robinson	15.	Distribution Channel Strategic Plan Update [Government Code Section 11126(j)(4)]

Information/Sheryl Chalupa and Vernon Steiner	16.	Planning for Board Strategic Meeting [Government Code Section 11126(j)(4)]

Information/Executive Committee	17.	Operational Strategic Plan Updates [Government Code Sections 11126(e), (j)(2), (3), (4)]
	Enterprise Risk Management Reinsurance Strategy Legislative Claims Information Technology Workplace Safety and Loss Prevention
Information/Scott Reid	18.	Significant Open Audits Report and Fraud Litigation Report [Government Code Sections 11126(e), (j)(2), (3),(4)]
	CDI Triennial Examination

Information/Michael Machado	19.	Risk, Financial and Investment Considerations Related to the Strategic Plan [Government Code Section 11126(j)(4)]

Information/Robin Baker	20.	Ad Hoc Safety and Loss Prevention Considerations Related to the Strategic Plan [Government Code Section 11126(j)(4)]

Information/Judith Sapper	21.	Pending and Potential Litigation [Government Code Sections 11126(e), (j)(4)]
	Zuniga v. Interactive Trucking; State Fund; Workers’ Compensation Appeals Board; First District Court of Appeal Division Two Case No. A143290; WCAB No. ADJ2563341 Vanguard Medical Management Billing, Inc., et al. v. Christine Baker, et al.; U.S. District Court, Central District of California, Case No. 5:17-cv-00965 GW (DTBx) State Compensation Insurance Fund v. Workers’ Compensation Appeals Board (Guzman); Sixth District Court of Appeal Case No. H044300; WCAB No. ADJ6839277 Department of Corrections and Rehabilitation v. Workers' Compensation Appeals Board (Fitzpatrick); Third District Court of Appeal Case No. C085850; WCAB No. ADJ8815575 State Compensation Insurance Fund v. Sana Ulla Khan, et al.; U.S. District Court, Central District of California, Southern Division Case No. 8:12-cv-01072 CJC-JCG (mLGx); U.S. Court of Appeal for the Ninth Circuit Case No. 16-55501 Hablian, et al. v. Zurich, et al.; Van Nuys WCAB No. VNO 403 724; ADJ4687742 Vatche Cabayan, M.D., et al. v. State Compensation Insurance Fund; San Francisco Superior Court Case No. CGC-09-492766 Seneca Insurance Company, Inc. v. Cybernet Entertainment, LLC; Cybernet Entertainment LLC v. State Compensation Insurance Fund; U.S. District Court for the Northern District of California Case No. 4:16-CV-06554-YGR; U.S. Court of Appeal for the Ninth Circuit Case No. 18-15082
OPEN SESSION	Friday, May 25, 2018 @ 9:30 a.m. or upon adjournment or recess of the Closed Session, whichever is later.

Action/Sheryl Chalupa	22.	Call to Order and Roll Call

Information/Dinesh Govindarao	23.	Opioid Management

Information/Andreas Acker	24.	Staffing Update
	Staffing Employee Leave Balance and Usage

Information/Peter Guastamachio	25.	Financial Update – 1st Quarter 2018

Information/Vernon Steiner	26.	President's Report

	27.	Reports by the Chairs of Committee Activities
Information/Lawrence Mulryan Information/Scott Reid Information/Michael Machado Information/Robin Baker	Governance Committee i. Governance, Compliance and Privacy Update Audit Committee i. Update on Completed Closed Audits Investment and Risk Committee i. Bond Transactions and Compliance Report Ad Hoc Safety and Loss Prevention Committee

Information/Sheryl Chalupa	28.	Chairwoman’s Report

Information/Sheryl Chalupa	29.	Board Member Reports

Action/Sheryl Chalupa	30.	Approval of President’s Compensation and Approval of Long-Term Incentive Plan

Information/Sheryl Chalupa	31.	Proposals and Suggestions for August 15-17, 2018 Agenda

		Next Board Meeting: August 15-17, 2018 at State Compensation Insurance Fund San Francisco Office.

¹Items 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 this 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.

STATE COMPENSATION INSURANCE FUNDBOARD OF DIRECTORS

BOARD OF DIRECTORS MEETING

AGENDA

STATE COMPENSATION INSURANCE FUND
BOARD OF DIRECTORS