PSERB Resolution 2007- 01
Re: Investment Objectives and Guidelines
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed Investment Objectives and Guidelines Addendums listed below for the Public School Employees Retirement System pursuant to the presentation and recommendations of James H. Grossman, Jr., Director of External Public Markets, Risk & Compliance, dated January 25, 2007. FURTHER RESOLVED THAT i n Section II, Risk, of each Addendum, the following language that was black-lined for removal will not be removed: Capital Loss - Preservation of capital is of major concern. It is the manager's responsibility to avoid, or minimize, capital losses.
| Addendum | Addendum Title |
| A | U.S. Style-Oriented Large Cap Equities |
| B | U.S. Extended Markets Equities |
| C | U.S. Style-Oriented Small Cap Equities |
| C1 | U.S. Micro Cap Equities |
| D | Enhanced S&P 500 Index Fund |
| E | Internally Managed Indexed Equity Portfolios |
| E1 | Internally Managed Alpha Generation Program |
| E2 | Equity Rebalancing Program |
| F | Equity Option Program Incremental Return |
| G | Enhanced U.S. Mid Cap Equities |
| H | Full Discretion Commodity Program |
| H1 | Enhanced Commodity Index Program |
| I | U.S. Core Plus Fixed Income |
| J | Fixed Income Rebalancing Program |
| K | U.S. High Yield Fixed Income Portfolios |
| L | Treasury Inflation Protection Securities Portfolio |
| M | Non-U.S. Equities |
| N | Non-U.S. Small Cap Equities |
| O | Emerging Market Equities |
| P | Active Currency Hedging Overlay Program |
| P1 | Active Currency Program |
| Q | Global Core Plus Fixed Income |
| T | U.S. Publicly Traded Real Estate Securities |
| Y | Short-Term Investment Pool |
| Internally Managed Health Options Program |
PSERB Resolution 2007- 02
Re: Navis Asia Fund V , L.P.
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Navis Asia Fund V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Alternative Investments, dated January 25, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 03
Re: Greenpark International Investors III , L.P.
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed 75 million plus reasonable normal investment expenses, in Greenpark International Investors III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Alternative Investments, dated January 25, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 04
Re: Madison Marquette Retail Enhancement Fund, L.P.
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $125 million plus reasonable normal investment expenses, in Madison Marquette Retail Enhancement Fund, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Alternative Investments, dated January 25, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 05
Re: Blackstone Real Estate Partners VI, L.P.
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $400 million plus management fees and reasonable normal investment expenses, in Blackstone Real Estate Partners VI, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Alternative Investments, dated January 25, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 06
Re: New Mountain Partners III, L.P.
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in New Mountain Partners III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Alternative Investments, dated January 25, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 07
Re: StarVest Partners II , L.P.
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $50 million plus reasonable normal investment expenses, in StarVest Partners II, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Alternative Investments, dated January 25, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 08
Re: Revision of Rules and Regulations
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board approves the proposed amendments to the Boards Rules and Regulations in substantially the form attached hereto, and authorizes the Executive Director to submit such amendments for promulgation pursuant to the applicable state statutes governing the regulatory review process. Changes for stylistic purposes are authorized that are acceptable to the Executive Director, Deputy Executive Director for Benefits and the Office of Chief Counsel. The Board must approve any changes in substance that result from the regulatory review/promulgation process.
PSERB Resolution 2007- 09
Re: Public Information Policy
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board approves the proposed changes to the Public Information Policy of the Commonwealth of Pennsylvania Public School Employees Retirement System pursuant to the presentation and recommendations of Gerald Gornish, Chief Counsel, dated January 12, 2007.
PSERB Resolution 2007-10
Re: Elections Procedures and Guidelines Policy
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed changes to the Elections Procedures and Guidelines Policy of the Commonwealth of Pennsylvania Public School Employees Retirement System pursuant to the presentation and recommendations of Veronica P. Thomas, dated January 12, 2007.
PSERB Resolution 2007-11
Re: Directed Commissions - Transfer of Funds
January 26, 2007
RESOLVED, that the Public School Employees Retirement Board approves the transfer of $4,000,000 from the Directed Commissions Restricted Revenue Account to the Public School Employees Retirement Fund Account.
PSERB Resolution 2007-12
Re: Asset Allocation Plan |
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed the Asset Allocation Plan for the Public School Employees Retirement Fund as proposed by Wilshire Associates Incorporated in its presentation material dated March 15, 2007
FURTHER RESOLVED, that the Board hereby delegates the authority to implement the Asset Allocation Plan, including the amounts allocated to the individual investment managers that have been approved by the Board, to the Chief Investment Officer with the concurrence of the Executive Director.
PSERB Resolution 2007-13
Re: Barclays Global Investors
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby engages Barclays Global Investors to manage a core plus U.S. fixed income portfolio using the BGI Fixed Income Global Alpha Bond Fund as the alpha engine and allocate up to 2.0% of the total fund to this portfolio in accordance with the recommendation of James H. Grossman, Jr., Director of External Public Markets, Risk & Compliance, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-14
Re: Investment Policy Statement, Objectives, and Guidelines
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby adopts the proposed Investment Policy Statement, Objectives, and Guidelines (IPS), as revised, for the Public School Employees Retirement System pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, dated March 15, 2007 and Wilshire Associates Incorporated for Exhibits B and C of the Investment Policy Statement.
FURTHER RESOLVED, that the Board adopts the following proposed addendums to the IPS pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, dated March 15, 2007:
PSERB Resolution 2007-15
Re: Apax Europe VII , L.P.
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 200 million plus reasonable normal investment expenses, in Apax Europe VII, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-16
Re: Avenue Special Situations Fund V , L.P.
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital but not to exceed $300 million plus reasonable normal investment expenses, in Avenue Special Situations Fund V, L.P. in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-17
Re: Broadway Partners Real Estate Fund III, L.P.
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in Broadway Partners Real Estate Fund III, L.P. in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-18
Re: Blue Point Capital Partners II, L.P.
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 90.9 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in a side fund to Blue Point Capital Partners II, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-19
Re: Lehman Brothers Merchant Banking Partners IV, L.P.
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Lehman Brothers Merchant Banking Partners IV, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 20
Re: Modifications to Resolution 2007-07 StarVest Partners II, L.P.
March 16, 2007
RESOLVED, that the Public School Employees Retirement Board hereby modifies the terms of its investment in StarVest Partners II, L.P. by investing an amount equal to 90.9 percent of the committed capital, but not to exceed $50 million plus reasonable normal investment expenses in a side fund in StarVest Partners II, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated March 15, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 21
Re: Public Market Emerging Investment Manager Program Policy (formally The Developmental Fund Policy)
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed Public Market Emerging Investment Manager Program Policy (formally the Developmental Fund Policy) for the Public School Employees Retirement System pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, dated May 3, 2007.
PSERB Resolution 2007- 22
Re: Bridgewater Associates Inc
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed change to Bridgewater Associates Inc.s Global Inflation-Linked Bond mandate pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer dated May 3, 2007, as follows:
- Convert portfolio alpha source to Pure Alpha at up to a 3% tracking error
- The final terms and conditions must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 23
Re: Acorn Derivatives Management Corporation
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed change to Acorn Derivatives Management Corporations mandate pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer dated May 3, 2007, as follows:
- Increase notional amount of option overwriting authority from $500 million to up to $1.5 billion
- The final terms and conditions must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 24
Re: OCM Opportunities Fund VII & VIIb , L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $75 million plus reasonable normal investment expenses, in OCM Opportunities Fund VII, L.P. and $125 million plus reasonable normal investment expenses, in OCM Opportunities Fund VIIb, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 25
Re: Capital International Private Equity Fund V , L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in Capital International Private Equity Fund V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 26
Re: Beacon Capital Strategic Partners V, L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, plus $200 million for potential co-investment opportunities presented by the GP to its LPs in Beacon Capital Strategic Partners V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 27
Re: Lehman Brothers Venture Partners V , L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $75 million plus reasonable normal investment expenses, in Lehman Brothers Venture Partners V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 28
Re: Clarity Partners II , L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 90.91 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in a side fund in Clarity Partners II, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 29
Re: Platinum Equity Capital Partners II, L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 90.91 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in a side fund in Platinum Equity Capital Partners II, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 30
Re: Fortress Investment Fund V, L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in Fortress Investment Fund V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 31
Re: Modifications to Resolution 2007-03 Greenpark International Investors III, L.P.
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board modifies the terms of its investment in Greenpark International Investors III, L.P., by increasing the amount of its investment from 75 million to 100 million plus reasonable normal investment expenses, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated January 25, 2007, as amended May 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 32
Re: Base and Incentive Compensation Program Restructure
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board approves in principle the recommendations presented by Jeffrey B. Clay on May 3, 2007, with respect to restructuring both PSERS base and incentive compensation programs for its investment professionals, all as more specifically set forth in his memo dated May 3, 2007.
PSERB Resolution 2007- 33
Re: Board Meeting Calendar Year 2007
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board modifies its Board and Committee meeting calendar dates for the remainder of the calendar year 2007 as follows:
PSERS | |
Thursday | Friday |
Friday | |
Thursday | Friday |
Wednesday | Thursday |
PSERB Resolution 2007- 34
Re: Chesterbrook Corporate Center
May 4, 2007
RESOLVED, that the Public School Employees Retirement Board approves the proposed marketing for sale the Chesterbrook Corporate Center, Wayne, Pennsylvania, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate. The final terms and conditions of the sale must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 35
Re: Royal Dutch/Shell
May 18, 2007
RESOLVED, that the Public School Employees Retirement Board (the Board) hereby accepts the recommendation of Gerald Gornish, dated May 16, 2007, regarding the composition of the class and the settlement entered into by the Non-U.S. Investors in the above matter; and the Board hereby delegates to the Executive Director and the Chief Counsel the authority to implement the recommendation. Said delegation shall include the authority to authorize or execute any and all documents necessary to implement the recommendation, provided that the final terms thereof shall be satisfactory to the Executive Director and the Office of Chief Counsel.
PSERB Resolution 2007- 36
Re: Investment Manager Hirings
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby hires the following commodity managers, pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, and the recommendation of Wilshire Associates Incorporated in its presentation material dated June 21, 2007, as follows:
Lehman Brothers Asset Management, Inc.
Schroder Investment Management North America
The final terms and conditions of the sale must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 37
Re: Investment Policy Statement, Objectives, and Guidelines
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby adopts the proposed revisions to the Investment Policy Statement, Objectives, and Guidelines and addenda thereto for the Public School Employees Retirement System as listed below pursuant to the recommendation of James H. Grossman, Jr., Director of External Public Markets, Risk & Compliance, dated June 21, 2007.
Exhibits B and C of the Investment Policy Statement, Objectives, and Guidelines
Addendum R Pennsylvania Mortgage Program Investment Policy Statement, Objectives and Guidelines
Addendum S Open-End Real Estate Investments
Addendum U Closed-End Opportunistic and Value-Added Real Estate Investments
Addendum V Direct Real Estate Program
Addendum W Farmland Investment Program
Addendum X Private Investment and Venture Capital Policy
Addendum X1 Private Debt Policy
PSERB Resolution 2007- 38
Re: Brigade Leveraged Capital Structures Offshore Ltd.
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests up to $500 million in the Brigade Leveraged Capital Structures Offshore Ltd. pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, and the recommendation of Wilshire Associates Incorporated in its presentation material dated June 21, 2007.The final terms and conditions must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 39
Re: Carlyle Europe Real Estate Partners III, L.P.
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 200 million plus reasonable normal investment expenses, in Carlyle Europe Real Estate Partners III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated June 21, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 40
Re: Centerline High Yield CMBS Fund III, L.L.C.
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in Centerline High Yield CMBS Fund III, L.L.C., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated June 21, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 41
Re: DLJ Real Estate Capital Partners IV, L.P.
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $250 million plus reasonable normal investment expenses, in DLJ Real Estate Capital Partners IV, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated June 21, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 42
Re: Stockbridge Real Estate Fund III, L P
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, plus $200 million for potential co-investment opportunities presented by the GP to its LPs in Stockbridge Real Estate Fund III, LP, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated June 21, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 43
Re: KRG Capital Fund IV, L.P.
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 97 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in a side fund in KRG Capital Fund IV, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated June 21, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 44
Re: The Baring Asia Private Equity Fund IV , L.P.
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in The Baring Asia Private Equity Fund IV, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated June 21, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 45
Re: 3355 W. Alabama
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby approves the proposed sale of PSERS investment in the Houston office building known as 3355 W. Alabama, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate. The final terms and conditions of the sale must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 46
Investment Professional Classification Structure
June 23, 2007
Resolved, that the Public School Employees Retirement Board hereby adopts, effective July 1, 2007, the new classification structure for its Investment Professionals, as follows:
PSERB Resolution 2007- 47
Investment Professional Base Compensation Salary Structure
June 22, 2007
Resolved, that the Public School Employees Retirement Board hereby adopts, effective July 1, 2007, the new base compensation salary structure for its Investment Professionals as follows:
Investment Pay Schedule (IP) July 2007
Job Title | General Definition of Work | Minimum Experience and Training Requirements |
Junior Investment Professional (PG 1) | This is entry level professional investment work. An incumbent in this position will generally be new to the organization, require a significant amount of supervision, have minimal investment experience, and have job duties that are generally task oriented. | Bachelors Degree |
Intermediate Investment Professional (PG 2) | This is professional investment work. An incumbent in this position will have some investment experience and a full understanding of their role within the PSERS organization. An incumbent for this position will perform more complex tasks and analysis and will require less direction in completing their assigned responsibilities. | Bachelors degree; and
Two years or more of relevant work experience in the investment industry; or
Masters degree in Business Administration or Investment-related field; or
Two years or more as a Junior Investment Professional with PSERS. |
Senior Investment Professional
(PG 3) | This is journey level professional investment work. An incumbent in this position will have extensive investment experience and fully understand PSERS organization. An incumbent in this position will be accountable for one or more specific functions within PSERS Investment Office. Incumbents are expected to generate ideas, perform complex tasks and analysis, and work independently. | Bachelors degree; and Five years or more of relevant work experience in the investment industry; or Three years or more of relevant work experience in the investment industry and successful completion of the Chartered Financial Analyst Certification program; or Three years or more of relevant work experience in the investment industry and successful completion of an advanced certification/education program specified in the individual position description; or Two years or more as an Intermediate Investment Professional with PSERS
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Portfolio Manager (PG 4) | This is journey level professional investment work involving direct responsibility for one or more passive or active public market equity or fixed income investment portfolios or direct responsibility over a group of external investment managers (i.e. portfolio manager of managers). An incumbent in this position will be expected to make portfolio management decisions. In the case of the passive or active public market equity or fixed income portfolio manager, the incumbent will make buy and sell decisions based on the investment objectives and guidelines of portfolio(s) assigned to them. In the case of Portfolio Manager of managers, decisions will center around building a portfolio of managers to meet the investment objectives of PSERS. In both cases, incumbents in these positions will be accountable for generating returns within the prescribed guidelines. | Bachelors degree; and Six years or more of relevant work experience in the investment industry; or Four years or more of relevant work experience in the investment industry and successful completion of the Chartered Financial Analyst Certification program; or Four years or more of relevant work experience in the investment industry and successful completion of an advanced certification/education program specified in the individual position description; or Two years or more as a Senior Investment Professional with PSERS. |
Managing Director (PG 5) | This is a senior management position within PSERS Investment Office. An incumbent in this position has responsibility for one or more asset classes or functions, and is a part of PSERS management team with direct oversight over the Systems investment functions along with the Chief Investment Officer. The positions report directly to the Chief Investment Officer and are required to make presentations to the Finance Committee of PSERS as needed. Managing Directors, along with the CIO, are expected to work as a team in meeting the goals and objectives established by the Board. Managing Directors will be evaluated not only on their individual performance but also on the relative investment performance of the Fund. All candidates for an investment director position must be ratified by the Board.
| Bachelors degree; and Seven years or more of relevant work experience in the investment industry; or Five years or more of relevant work experience in the investment industry and successful completion of the Chartered Financial Analyst Certification program; or Five years or more of relevant work experience in the investment industry and successful completion of an advanced certification/education program specified in the individual position description; or Four years or more as a Portfolio Manager with PSERS. |
Chief Investment Officer (CIO) (PG 6) | This is a senior management position with oversight responsibility over the entire Investment Office. The CIO reports to the Finance Committee for all investment related matters and to the Executive Director for all administrative matters. The CIO is responsible and accountable for the results of the Systems assets. The CIO is responsible for policy development, consultation, and coordination of investments for PSERS. The Board must ratify all candidates for the CIO position.
| Masters degree (or Bachelors degree and CFA certification) and seven years of experience in the field of investments, five of which must have been in a senior management or consultative position managing diverse asset classes of a billion dollars or more; or Four years or more as a Managing Director at PSERS; or Any equivalent combination of experience and training. |
Pay Group | |||||||
Pay Level | 1 | 2 | 3 | 4 | 5 | 6 | |
1 | Hourly | 20.45 | 32.72 | 44.99 | 57.26 | 71.58 | 102.25 |
| Biweekly | 1,533.75 | 2,454.00 | 3,374.25 | 4,294.50 | 5,368.50 | 7,668.75 |
| Annually | 40,000 | 64,000 | 88,000 | 112,001 | 140,010 | 200,001 |
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20 | Hourly | 36.81 | 49.08 | 67.49 | 85.89 | 107.37 | 153.38 |
| Biweekly | 2,760.75 | 3,681.00 | 5,061.75 | 6,441.75 | 8,052.75 | 11,503.50 |
| Annually | 72,000 | 96,000 | 132,010 | 168,001 | 210,016 | 300,011 |
PSERB Resolution 2007- 48
Investment Professional Base Salary Increases
June 22, 2007
Resolved, that the Public School Employees Board hereby implements the base salary increases for its Investment Professionals, effective July 1, 2007, with the understanding that they will be paid retroactive to that date once the new salary schedule is filed with the Office of Administration, as follows:
Employee Name | Current Salary | July 1, 2007 | July 1, 2008 | |
Chief Investment Officer |
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Van Noord, Alan | $189,184.00 | $218,994.00 | $233,996.00 | |
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Investment Directors |
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Grossman, James | $148,206.00 | $154,993.00 | $169,996.00 | |
ark | 0 | $154,993.00 | $169,996.00 | |
Peters, Gerald | $148,206.00 | $154,993.00 | $169,996.00 | |
Smith, Gerard | $148,206.00 | $154,993.00 | $169,996.00 | |
Spiller, Charles | $148,206.00 | $154,993.00 | $169,996.00 | |
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Portfolio Managers |
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| |
Arrowsmith, Lawrence (retiring 6/07) | $114,622.00 | N/A | N/A | |
Derr, Steven | $102,436.00 | $112,001.00 | $127,003.00 | |
Devine, Robert | $79,257.00 | $112,001.00 | $127,003.00 | |
Oh, Susan | $96,392.00 | $112,001.00 | $127,003.00 | |
Williams, David | $118,514.00 | $121174.00 | $127,003.00 | |
Senior Investment Professionals |
|
|
| |
Baker, Christopher | $102,045.00 | $104,333.00 | $107,463.00 | |
Foreman, Darren | $88,920.00 | $96,001.00 | $105,996.00 | |
Grubic, Michael | 0 | $96,001.00 | $105,996.00 | |
Jacobs, Luke | $75,815.00 | $96,001.00 | $105,996.00 | |
Little, Robert | $76,323.00 | $96,001.00 | $105,996.00 | |
Plotts, Maryann | $87,101. | 00 | $96,001.00 | $105,996.00 |
Stalter, William | $75,834 | .00 | $96,001.00 | $105,996.00 |
|
|
|
| |
Intermediate Investment Professional |
|
|
| |
Brickman, Marc | $73,956.00 | $74,993.00 | $80,000.00 | |
|
|
|
| |
Junior Investment Professionals |
|
|
| |
Sellers, Margaret | $59,991.00 | $61,008.00 | $63,179.00 | |
Sheva, Joseph | $66.563.00 | 0 | $70,103.00 | |
Tyler, Michael | $59,991.00 | $61,008.00 | $63,179.00 | |
TOTALS | $2,298,811.00 | $2,396,553.00 | $2,611,888.00 | |
|
|
|
|
PSERB Resolution 2007- 49
Re: Education Policy (Formerly the Travel and Education Policy)
June 22, 2007
RESOLVED, that the Public School Employees Retirement Board hereby adopts the proposed Education Policy, replacing in its entirety the former Travel and Education Policy, in accordance with the recommendation of Jeffrey B. Clay, Executive Director, dated June 6, 2007. The effective date of the Education Policy shall be June 22, 2007.
PSERB Resolution 2007- 50
RE: Health Options Program Plan Changes Effective January 1, 2008
June 22, 2007
RESOLVED, that the Health Care Committee of the Public School Employees Retirement Board, in accordance with the recommendations set forth in the Report Regarding the Marketability of the Health Options Program (HOP) and Recommendations to Improve Enrollment, dated June 2007, hereby recommends that the Board approve the following changes to the HOP effective January 1, 2008:
Pareto Currency Hedge
Increase the notional value of the currency hedge to 40% of the non-U.S. equity exposure and decrease the hedge ratio from 100% to 75%
1. Replace the current 90 day time frame to 180 days to allow retirees to enroll in HOP when they have a Qualifying Event
2. Begin outreach/enrollment process six (6) months prior to retirees attaining age 65 and follow-up with an initial mailing and telephone call to verify that materials were received.
3. Verify that retirees receiving Premium Assistance are enrolled in an Approved Plan when they become age 65.
4. Explore conducting HOP enrollment meetings for retirees attaining age 65.
5. Replace the HOPs Medical Plan annual Part B deductible ($131 for 2007) with a $10 per Office Visit co-pay.
6. Add Silver Sneakers fitness program to the HOP Medical Plan on a pilot project basis with program expenses paid from plan reserves.
7. Vary Out-of-State premiums for the HOP Medical Plan to meet market conditions.
8. Limit the number of managed care plans offered through HOP for new participants to one plan per managed care organization.
9. Remove Aetna from Southwest and North & Central regions of Pennsylvania and add University of Pittsburgh Medical Center Health Plan (UPMC) to the Southwest and in some North & Central counties.
10. Prepare and distribute HOP enrollment packets to school employers not sponsoring Medicare supplement plans. Explore conducting periodic meetings with Human Resources personnel and benefits managers of school districts.
11. Notify school employers sponsoring Medicare supplemental plans of HOPs Qualifying Events and HOPs willingness to work with schools to transition their retirees to HOP in the event the school plan is terminated.
FURTHER RESOLVED, that the Committee tables the following recommendations and requests that staff gather additional information to be brought to the Committee at its August 3, 2007 meeting for consideration:
1. Introduce a new High Deductible Plan to the 65-Special Program (supplement to Medicare).
2. Replace the Traditional Program High and Standard Options with a High Deductible Plan (for individuals not eligible for Medicare).
PSERB Resolution 2007-51
Re: 2008 Committee and Board Meeting Dates
July 2, 2007
RESOLVED, that the Public School Employees Retirement Board hereby approves the attached schedule for PSERS Committee and Board meeting dates for 2008.
PSERB Resolution 2007- 52
Re: PIMCO Conversion
August 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby liquidates the PIMCO Enhanced S&P 500 Index portfolio and invests up to $300 million in a separate account that will invest 50% in PIMCOs PARS V Offshore Fund Ltd. and 50% in PIMCOs GCOF Offshore Fund Ltd. pursuant to the recommendation of James H. Grossman, Jr., Director of External Public Markets, Risk, and Compliance, and the recommendation of Wilshire Associates Incorporated dated August 3, 2007.
The final terms and conditions must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 53
Re: CVC Capital Partners Asia Pacific III, L.P.
August 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in CVC Capital Partners Asia Pacific III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated August 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 54
Re: PAI Europe V , L.P.
August 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 200 million plus reasonable normal investment expenses, in PAI Europe V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated August 3, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 55
Re: Chesterbrook Office Building
August 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby approves the proposed sale of PSERS investment in the suburban Philadelphia office building known as the Chesterbrook Office Building (a/k/a 1200 Morris Drive), in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate. The final terms and conditions of the sale must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 56
Revised Investment Office Managing Directors Salary Adjustments
August 3, 2007
Resolved, that the Public School Employees Retirement Board hereby adopts, effective July 1, 2007, the revised Investment Office Managing Directors salary adjustments, as follows:
2007 Base Salary $169,996
2008 Base Salary $186,994
PSERB Resolution 2007- 57
Investment Office Incentive Compensation Plan
August 3, 2007
Resolved, that the Public School Employees Retirement Board hereby adopts changes to the Investment Office Incentive Compensation Plan in accordance with the recommendation of Jeffrey B. Clay, Executive Director, dated August 3, 2007.
PSERB Resolution 2007- 58
Policy Manual for Investment Office Professional Staff
August 3, 2007
Resolved, that the Public School Employees Retirement Board hereby adopts the Policy Manual for Investment Office Professional Staff in accordance with the recommendation of Jeffrey B. Clay, Executive Director, dated August 3, 2007.
PSERB Resolution 2007- 59
Re: Health Options Program 2008 Plan Design Changes for the Traditional Program (for individuals not eligible for Medicare)
August 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby approves the plan to assist the Traditional Program participants over age 65 in their efforts to enroll in Medicare Parts A & B effective January 1, 2008, or as soon thereafter as possible. For those that enroll in Medicare, they will be covered under the HOP Medical Plan at no cost, with the premium for the HOP Medical Plan to be paid from HOP reserves until these participants no longer pay Medicare Part A premiums (7 years). In the case where enrollment in Medicare is delayed, over age 65 participants will be charged $1,149 per month for the current High Option and $680 per month for the current Standard Option for the 2008 plan year. After 2008, the premium would be the full amount needed to support the benefits offered.
FURTHER RESOLVED that, effective January 1, 2008, for participants under age 65, the benefits provided by the High and Standard Options and the monthly premium rates for single coverage will be as follows:
FURTHER RESOLVED, that in addition to these monthly premium rates, the premiums for HOP participants eligible for Medicare will be increased by approximately $1.00 ($.96 to $1.16 based on regional rates).
FOR RETIREES UNDER AGE 65 | new high Option | new standard option |
Benefit: Amount Member pays for: |
|
|
Plan Deductible | $1,500 | $1,500 |
Hospitalization | 25%(30% out-of-network) | 25%(30% out-of-network) |
Medical Surgical | 25%(30% out-of-network) | 25%(30% out-of-network) |
Preventive Annual Exam | $0 | $0 |
Out Of Pocket Maximum | $5,000 | $5,000 |
Maximum | $200,000 (Annually) | $200,000 (Annually) |
Prescription Drugs |
|
|
Deductible | $350 |
|
Coinsurance | 50% |
|
Maximum | $3,000 |
|
2008 Premium (Single Coverage) | $929 | $616 |
PSERB Resolution 2007- 60
Re: Health Options Program 2008 Plan Design Changes for the Enhanced Medicare Rx Option
August 3, 2007
RESOLVED, that the Public School employees Retirement Board hereby approves effective January 1, 2008, the benefits provided by the Enhanced Medicare Rx Option will be as follows:
PSERB Resolution 2007- 61
Re: Health Options Program 2008 Plan Year Premium Rates for the 65 Special Fee-For- Service Plans(for individuals eligible for Medicare)
August 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby approves, effective January 1, 2008, the monthly premium rates for single coverage for the fee-for-service plans for individuals eligible for Medicare in Pennsylvania will be as follows:
| 2008 Enhanced Option |
Amount Member Pays For: | Medicare Rx Option |
Annual Deductible | $0 |
Initial Coverage Up to $2,510 ($2,400 for 2007) |
|
Generic drug |
|
Brand-name drug w/ no generic equivalent | $25 |
Brand-name drug w/ generic equivalent | $7 plus cost difference |
Specialty Drug | 33% |
Coverage Gap from $2,510 to $4,050 TrOOP |
|
Generic drug | |
) | |
Brand-name drug w/ no generic equivalent | |
Brand-name drug w/ generic equivalent | 50% of generic cost plus cost difference |
Coinsurance for Specialty Drug | Same as generic and brand |
Catastrophic Coverage After $4,050 ($3,850 for 2007) |
|
Generic & Brand-name drug w/o generic equivalent | 5% |
Maximum/minimum per prescription | $100/$2.25 |
Brand-name drug w/ generic equivalent | 5% |
Maximum per prescription | $100 plus cost difference |
Coinsurance for Specialty Drug | 5% |
Maximum per prescription | $100 |
FURTHER RESOLVED, that in the event the Center for Medicare and Medicaid Services (CMS) changes its payments to HOP for 2008, the rates for the Enhanced and Basic Medicare Rx Options will be adjusted as appropriate.
PSERB Resolution 2007- 62
Re: Termination of The Boston Company / Hiring of Munder Capital Management
August 17, 2007
RESOLVED, that the Public School Employees Retirement Board hereby terminates The Boston Company as the investment manager of their Non-US small cap equity portfolio and hire Munder Capital Management to take over the management of the same Non-US small cap equity portfolio, pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, and the recommendation of Wilshire Associates Incorporated dated August 9, 2007. The final terms and conditions must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-63
Re: OCM Opportunities Fund VIIb, L.P.
August 17, 2007
RESOLVED, that the Public School Employees Retirement Board hereby modifies the terms of its investment in OCM Opportunities Fund VIIb, L.P., by increasing the amount of its investment from $125 million to $225 million plus reasonable normal investment expenses, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated May 3, 2007 as amended August 17, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-64
Re: Investment Managers
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby adopts the proposed change to a manager mandate, proposed manager transition, and proposed manager terminations pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, and the presentation of recommendation of Wilshire Associates Incorporated in its presentation material dated September 27, 2007, as follows:
Investment Manager Mandate Change
HOP Medical Plan | 2008 RATES |
Southwest PA | $168.28 |
North & Central PA | $149.46 |
Southeast PA | $180.46 |
Enhanced Rx Option | $77.44 |
Basic Rx Option | $25.00 |
HOP Medical w/ Enhanced Rx |
|
Southwest PA | $245.72 |
North & Central PA | $ 226.90 |
Southeast PA | $ 257.90 |
HOP Medical w/ Basic Rx |
|
Southwest PA | $ 193.28 |
North & Central PA | $ 174.46 |
Southeast PA | $ 205.46 |
Investment Manager Transition
Transition the Delaware Investments U.S. core plus fixed income portfolio to Logan Circle Partners effective on the close of business October 31, 2007
Investment Manager Terminations
Mellon Equity Associates active DJ Wilshire 4500 index portfolio
Wellington Management Company active Russell 2000 index portfolio (Small Cap 2000)
The Boston Company active MSCI ACWI ex. U.S. portfolio
Brown Brothers Harriman active U.S. TIPS fixed income portfolio
The final terms and conditions must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-65
Re: Oaktree Loan Fund 2x, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests up to $350 million plus management fees and reasonable normal investment expenses, in Oaktree Loan Fund 2x, L.P. (the Fund), in accordance with the recommendation of Alan Van Noord, Chief Investment Officer, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
FURTHER RESOLVED, that the Board hereby approves that an account be funded with the required capital for the Managing Director of Fixed Income to manage the duration of this investment using derivative instruments to closely match the duration of the Lehman U.S. Universal index in accordance with the recommendation of Alan Van Noord, Chief Investment Officer, dated September 27, 2007.
PSERB Resolution 2007-66
DRA Growth and Income Fund VI, LLC
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $150 million plus reasonable normal investment expenses, in DRA Growth and Income Fund VI, LLC, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-67
Re: Five Arrows Realty Securities V, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Five Arrows Realty Securities V, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-68
Re: Apollo Europe Real Estate Fund III, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 100 million plus reasonable normal investment expenses, in Apollo Europe Real Estate Fund III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-69
Re: MGP Europe Fund III, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 100 million plus reasonable normal investment expenses, in MGP Europe Fund III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-70
Re: MGP Asia Fund III, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in MGP Asia Fund III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-71
Re: Cornerstone Patriot Fund, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests $100 million plus reasonable normal investment expenses, in Cornerstone Patriot Fund, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-72
Re: New York Life Capital Partners IV, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests $200 million plus reasonable normal investment expenses, in New York Life Capital Capital IV, L.P. in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-73
Re: Crestview Capital Partners II, L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 90.9 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in a side fund to Crestview Capital Partners, L.P. in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-74
Re: LLR Equity Partners III , L.P.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $187.5 million plus reasonable normal investment expenses, in LLR Equity Partners III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-75
Re: Modifications to Resolution 2006-27 Centerline Real Estate Special Situations Mortgage Fund, L.L.C.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby modifies the terms of its investment in Centerline Real Estate Special Situations Mortgage Fund, L.L.C., by increasing the amount of its investment from $89.25 million to $178.50 million plus reasonable normal investment expenses, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated September 27, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-76
Re: Securities Litigation Policy
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby adopts the proposed changes to the Securities Litigation Policy of the Commonwealth of Pennsylvania Public School Employees Retirement System pursuant to the recommendation of Gerald Gornish, Chief Counsel, and Lenann T. Engler, Assistant Deputy Chief Counsel, dated September 11, 2007.
PSERB Resolution 2007-77
Re: 2008-2009 Administrative Budget and Directed Commissions Restricted Revenue Budget
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby approves the 2008-2009 Administrative Budget (not to exceed $ 42,386,000) and the 2008-2009 Directed Commissions Restricted Revenue Budget ($1,000,000) for the Public School Employees Retirement System as more particularly set forth in the attached summaries.
PSERB Resolution 2007-78
Re: Qwest Communications International, Inc.
September 28, 2007
RESOLVED, that the Public School Employees Retirement Board hereby delegates to the Executive Director the authority to settle PSERS pending securities litigation with Qwest, in accordance with the recommendation of Gerald Gornish, Chief Counsel. Said delegation shall include the authority to execute any and all documents necessary to implement the settlement, provided that the final terms of the settlement shall be satisfactory to the Executive Director, Chief Investment Officer and Office of Chief Counsel.
PSERB Resolution 2007-79
Re: Financial Statements andIndependent Auditors Report
October 3, 2007
RESOLVED, that the Public School Employees Retirement Board hereby accepts the June 30, 2007 Financial Statements and accompanying Independent Auditor Report prepared for the Public School Employees Retirement System by Clifton Gunderson LLP.
PSERB Resolution 2007-80
Re: Litigation Against Healthways, Inc.
November 5, 2007
RESOLVED, Public School Employees Retirement Board authorize the Executive Director, acting on behalf of the Public School Employees Retirement System, to take any and all appropriate legal action against Healthways, Inc. and any other appropriate defendants, in connection with the decision by Healthways, Inc. to deny to the Health Options Program access to the SilverSneakers Fitness Program, in accordance with the recommendation of Jeffrey B. Clay, Executive Director dated October 31, 2007. Staff is directed to seek delegation of authority from the Attorney General for this litigation, and is also authorized, if deemed appropriate, to request the appointment of outside counsel by the Office of General Counsel. The terms and conditions of the legal services contract must be satisfactory to the Office of Chief Counsel and the Executive Director.
PSERB Resolution 2007-81
Re: Health Options Program School District of Philadelphia Expansion of Health Care Plans
December 13, 2007
RESOLVED, that Public School Employees Retirement Board does not recognize the Bankers Life and Aetna plans for Premium Assistance purposes pending assessment of the School District of Philadelphias expansion of its Medicare Plan options. The results of this assessment shall be discussed at a future Health Care Committee meeting.
PSERB Resolution 2007-82
Re: 2008 Health Options Program Budget
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board adopts the proposed Program and Administrative Budget of the Health Options Program and the Medicare Prescription Drug Program Administrative Budget for the Plan Year 2008 in the aggregate amount of $218,445,000, as presented by Mark F. Schafer at the December 12, 2007 Health Care Committee meeting.
PSERB Resolution 2007-83
Re: Health Options Program Pharmacy Benefit Consulting Services
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board, in accordance with the recommendation of the Pharmacy Benefit Consulting Services Request for Proposal Evaluation Committee, selects Independent Pharmaceutical Consultants, as the Pharmacy Benefit Consultant for the Health Options Program for the period commencing February 1, 2008, through January 31, 2010, renewable for up to three one-year periods upon the mutual written consent of the parties, subject to negotiations of terms and conditions satisfactory to the Health Insurance Administrator, the Office of Chief Counsel and the Executive Director.
PSERB Resolution 2007-84
Re: Health Options Program Health Care Consulting Services
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board, in accordance with the recommendation of the Health Care Consulting Services Request for Proposal Evaluation Committee, selects Segal, Inc., as the Health Care Consultant for the Health Options Program for the period commencing February 1, 2008, through January 31, 2010, renewable for up to three one-year periods upon the mutual written consent of the parties, subject to negotiations of terms and conditions satisfactory to the Health Insurance Administrator, the Office of Chief Counsel and the Executive Director.
PSERB Resolution 2007-85
Re: BlackRock Financial Management, Inc.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby hires BlackRock Financial Management, Inc. to manage a LIBOR portfolio, not to exceed one billion dollars, subject to a review by the Board of the portfolio performance within six months of the date of funding, or the closest scheduled Board meeting, pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, dated December 12, 2007. The final terms and conditions of the contract must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-86
Re: The Boston Company Microcap Portfolio
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests up to $200 million in The Boston Company Microcap Portfolio (the Fund), in accordance with the recommendation of Alan Van Noord, Chief Investment Officer, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-87
Re: Hyperion Brookfield Asset Management, Inc.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby hires Hyperion Brookfield Asset Management, Inc. to manage a mortgage backed and asset backed security portfolio with an initial target of 0.75% of the total net assets of the Fund and a target range of 0% to 1.25% of the total net assets of the Fund pursuant to the recommendation of Alan H. Van Noord, Chief Investment Officer, dated December 12, 2007. The final terms and conditions of the contract must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-88
Re: BlackRock Mortgage Investors, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests up to $500 million plus management fees and reasonable normal investment expenses, in BlackRock Mortgage Investors, L.P. (the Fund), in accordance with the recommendation of Alan Van Noord, Chief Investment Officer, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-89
Re: TCW Credit Opportunities Fund, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests up to $250 million plus management fees and reasonable normal investment expenses, in TCW Credit Opportunities Fund, L.P. (the Fund), in accordance with the recommendation of Alan Van Noord, Chief Investment Officer, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-90
Re: Advent International GPE VI, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 200 million plus reasonable normal investment expenses, in Advent International GPE VI, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-91
Re: Fillmore West Fund, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Fillmore West Fund, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-92
Re: Apollo Value Enhancement Fund VII, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $150 million plus reasonable normal investment expenses, in Apollo Value Enhancement Fund VII, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-93
Re: Milestone Partners III, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 90.9 percent of the committed capital, but not to exceed $60 million plus reasonable normal investment expenses, in a side fund to Milestone Partners III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-94
Re: Lehman Brothers Real Estate Partners III, L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in Lehman Brothers Real Estate Partners III, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-95
Re: Bridgepoint Europe IV , L.P.
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby invests an amount equal to 25 percent of the committed capital, but not to exceed 300 million plus reasonable normal investment expenses, in Bridgepoint Europe IV, L.P., in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007-96
Re: Modifications to Resolution 2006-23 Apollo Real Estate Finance Corporation
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby modifies the terms of its investment in Apollo Real Estate Finance Corporation, by increasing the amount of its investment from $150 million to $241.5 million plus reasonable normal investment expenses, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated December 12, 2007. The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Executive Director.
PSERB Resolution 2007- 97
Re: Royal Dutch/Shell
December 13, 2007
RESOLVED, that Public School Employees Retirement Board hereby accepts the recommendation of the Office of Chief Counsel and Outside Counsel as presented by Lenann Engler, Assistant Deputy Chief Counsel, on December 13, 2007, not to appeal from the Order dated November 13, 2007, entered by the U.S. District Court for the District of New Jersey dismissing the claims of the Non-U.S. Purchasers.
PSERB Resolution 2007-98
Re: Signing of Contracts, Instruments, and Other Documents
December 13, 2007
RESOLVED, that any two or more of the persons occupying the following positions, namely the Executive Director; Deputy Executive Director, Operations; Deputy Executive Director, Benefits; Chief Financial Officer; Managing Director of External Markets, Compliance and Risk Manager; and Chief Investment Officer, be and hereby are authorized to execute and deliver any and all contracts, instruments, or documents in the name of the Public School Employees Retirement System or the Public School Employees Retirement Board, and to endorse, assign, or guarantee all such contracts, instruments, or documents in the name of the Public School Employees Retirement System or Public School Employees Retirement Board.
PSERB Resolution 2007-99
Re: Actuarial Valuation
December 13, 2007
RESOLVED, that the Public School Employees Retirement Board hereby accepts the June 30, 2007 actuarial valuation report prepared by Buck Consultants, and adopts the actuarial factors, assumptions and methodologies contained therein, which result in an employer contribution rate of 4.76% for Fiscal Year 2008/2009.
PSERS Resolution 2007-100
Prudence Due Diligence Study
December 13, 2007
WHEREAS, the Board must act at all times in a responsible and prudent manner to safeguard all of the funds in PSERS and to achieve and maintain a full and sound level of earnings on the investment of these funds;
WHEREAS, the Board is responsible to assure and to protect the pensions of teachers and other public school personnel who are the members of PSERS
WHEREAS the fiduciary responsibility of PSERB requires that investment decisions are made on the basis of economic value to the plan and whether alternative investments provide equal or greater value to the plan.
WHEREAS a substantial portion of the fund includes investments in companies that operate internationally and/or which are not U.S. based firms.
WHEREAS international circumstances may have occurred that cause investments in one nation to become so risky that the prudence of current investments in companies with a presence in the nation must be evaluated. Such consideration should determine if the continued holding of investments with companies in that nation could cause any financial exposure to portfolio.
RESOLVED , that the Board direct staff to perform due diligence, in accordance with the Boards fiduciary duties, to determine the prudence of maintaining its investments, if any, in the following six companies (Companies), particularly in light of their alleged business activities in Sudan and or with the Government of Sudan (Sudan Activities):
PetroChina/CNPC
ONGC
Petronas
Sinopec
Lundin
Ar
ef
Said due diligence shall include, but not be limited to:
PSERS current separate, public holdings, if any, in the Companies;
The scope and nature of the Companies Sudan Activities;
To the extent possible, the percentage of the Companies revenues derived from their Sudan Activities in relation to their total revenue;
To the extent possible, the percentage of the Companies assets in relation to their total assets, potentially at risk due to their Sudan Activities, particularly in view of the uncertain and unstable business environment currently in Sudan attributable to the ongoing civil instability, violent attacks on people and infrastructure, displaced populations and domestic strife; To the extent possible, the historical performance of the Companies stock over a one, three, five, and ten year period;
To the extent possible, PSERS money manager expectations for the future performance of the Companies, including the impact of potential trade sanctions against Sudan by major trading countries, the potential of trade boycotts of the Companies goods and services based on their Sudan Activities, the continued instability of the business environment noted above, the potential flight from Sudan of public/private capital, and the impact on the Companies share values due to the international divestment campaigns;
To the extent possible, potential alternative investments, if any, for the Companies that are potentially better or equal to the Companies from a risk, performance and diversification perspective; and
The potential costs of replacing the Companies with the identified alternatives.
Said due diligence shall be presented to the Finance Committee and Board at their next meetings.
