Members Present:

Member Excused:

Staff Present:

Judi Lohn and Joanna Winchester

The meeting of the Board of Trustees of The Anne Arundel County Retirement and Pension System (Board) was called to order at 12:25 p.m. by Chairman John Hammond.

Minutes

• The approval of the February 8, 2007 minutes was deferred until the next board meeting

Investment Committee

• Sabrina Churchwell and Michael Jaji from Buckhead Capital Management were in attendance to discuss their firm and the performance of the Small Cap. Value portfolio

• Michael J. McCloskey and Dave Reidinger from Chartwell Investment Partners were also in attendance to discuss the County’s Small Cap Growth portfolio.

• Rhett Humphries of New England Pension Consultants (NEPC) distributed and discussed the Preliminary Investment Performance Net of Fee Flash Report for period ending 2/28/2007.

Mr. Humphries provided the Board with an update on the private equity program and noted that Quellos has a new fund opening. John Hammond suggested that Quellos be invited to attend a Board meeting and give an overview of the new fund to the Board members. Mr. Humphries also noted that new stone capital partners has a new fund available in the Mezzanine space and is taking money at this time.  Bill Monagle, the Private Equity chief at NEPC, suggested that the Board take advantage of this before it closes in May.  Mr. Hammond will schedule a special meeting with Mr. Humphries to discuss the two items.

• Investment Committee meeting minutes for January 31, 2007 were distributed to the Board members.

Administrative Report

• Judi Lohn distributed and discussed the monthly Retirement Activity Report.  Ms. Lohn reported that each of the Pension Analyst received and completed approximately 27 retirement projection calculations for the month.

Ms. Lohn distributed and discussed a verification /authorization list for movement of money.  A flow chart presented at the boards request reflected pension personnel responsibilities and back up for each position.

Ms. Lohn also reported that the Office of Personnel asked for and received a check from ADP for the interest, which was lost due to ADP not returning the 12/29/06 pension checks in a timely manner.

• Prudential has been asked to review their 20-day turnaround policy for Death Benefit payouts.  It is the Office of Personnel’s position that a 20 day turnaround is too long.

• LeRoy Wilkison inquired whether the problem, which caused a retirees direct deposit pension payment not to be processed, was identified and fixed.

Andrea Fulton reported that yes ADP had identified the problem and that they are in the processes of putting a patch to correct it, however, the patch would not be in place for the next pension payroll.  Ms. Fulton noted that she met with representatives from ADP last week to discuss the issues that Personnel has with the EV3 process.  Until the patch is in place ADP has shown Personnel how to read reports that will show when a retiree’s pension check has not been generated.  It was also noted that the error was caused due to a system problem with ADP and not a keystroke error.

• William Brown discussed the Statement of Plan Net Assets for December 31, 2006, which was distributed to the Board members.

• Mr. Hammond noted that he was still looking into the Foreign Tax Withholding issues.

• LeRoy Wilkison inquired if the Audit was taking place.

Mr. Brown responded that he sent confirmation requests to all the various managers and that the auditors will be on site on Monday or Tuesday. 

• Mr. Wilkison also inquired about the State Street issues.

Mr. Brown noted that the transition from Boston to Kansas City was complete and that he was impressed with the new representative for State Street.  Mr. Brown noted that the new representative had ideas to streamline some of our processes.

Other Business

• None

The meeting adjourned at 2:00 pm. The next meeting is scheduled for April 12, 2007 @ 12:00 pm