2010 Board Meeting Resolutions

The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing investment contract or by a memo to that effect appended to the implementing investment contract.

January 22, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") hires Oppenheimer Capital to manage an absolute return options portfolio in an amount not to exceed the target ranges established in Exhibit D of the Investment Policy Statement, Objectives and Guidelines pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, and Wilshire Associates Incorporated, both dated January 7, 2010.

The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing investment contract or by a memo to that effect appended to the implementing investment contract.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") invests $250 million in the BlackRock Emerging Markets Macro Fund Ltd. pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, and Wilshire Associates Incorporated, both dated January 7, 2010.

The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing investment contract or by a memo to that effect appended to the implementing investment contract.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") invests $500 million in an internally-managed emerging markets equity portfolio pursuant to the recommendation of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance dated January 7, 2010.

The portfolio will be managed internally by the Investment Staff with a portion of the proceeds invested in PSERS internally-managed LIBOR-Plus and/or STIF portfolio and the remainder to be invested in the BlackRock Emerging Markets Macro Fund Ltd. The emerging markets equity exposure of the entire allocation to this portfolio will be obtained through swaps. PSERB Resolution 2010-05 Re: Mariner Investment Group, LLC January 22, 2010

PSERB Resolution 2010-05 
Re: Mariner Investment Group, LLC
January 22, 2010

PSERB Resolution 2010-05 Re: Mariner Investment Group, LLC January 22, 2010 RESOLVED, that the Public School Employees' Retirement Board (the "Board") hires Mariner Investment Group, LLC to manage an opportunistic residential mortgage-backed securities portfolio in an amount not to exceed the target ranges established in Exhibit D of the Investment Policy Statement, Objectives and Guidelines pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, and Wilshire Associates Incorporated, both dated January 7, 2010.

The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing investment contract or by a memo to that effect appended to the implementing investment contract.

PSERB Resolution 2010-06
Re: Investment Objectives and Guidelines
January 22, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") adopts the proposed Investment Objectives and Guidelines Addendum listed below pursuant to the recommendation of John B. Kemp, Senior Investment Professional, dated January 7, 2010.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") adopts the proposed changes to the Public Information Policy of the Commonwealth of Pennsylvania, Public School Employees' Retirement Board pursuant to the recommendation of Richard Michlovitz, Deputy Chief Counsel, dated January 8, 2010.

RESOLVED, that the Public School Employees' Retirement System (the "Board") approves the proposed revisions to the Board s Securities Litigation Policy in accordance with the recommendation of Gerald Gornish, Chief Counsel, dated January 8, 2010.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") adopts the proposed evaluation form for use in the annual performance review of the Executive Director's position, pursuant to the recommendation of Maribel La Luz, Director of Human Resources, dated January 13, 2010.

PSERB Resolution 2010-10
Re:   Investment Policy Statement, Objectives, and Guidelines
March 11, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") adopts the proposed changes to Exhibits B, C, and D of the Investment Policy Statement, Objectives, and Guidelines for the Public School Employees' Retirement Board as recommended by Alan H. Van Noord, Chief Investment Officer, and William G. Bensur, Jr., Managing Director, Wilshire Associates in their joint letter dated March 11, 2010.

PSERB Resolution 2010-12
Re:   Citigroup Inc.
March 11, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") authorizes the Executive Director, acting on behalf of the Public School Employees' Retirement System ("PSERS"), to cause PSERS to opt out of the class actions commenced in the United States District Court for the Southern District of New York, Case No. 07 CIV 9901(SHS) and Case No. 08 CIV 9522 (SHS) against Citigroup Inc. and other named defendants ("Defendants"), relating to the common stock, preferred stocks and certain bonds issued by Citigroup Inc. or its affiliates, provided there are no legal impediments to doing so, in accordance with the recommendation of Gerald Gornish, Chief Counsel, concurred in by Jeffrey B. Clay, Executive Director and Alan Van Noord, Chief Investment Officer.   Staff is directed to request the appointment of outside counsel by the Office of General Counsel and seek delegation of authority from the Attorney General for said litigation.   The terms and conditions of the legal services contract must be satisfactory to the Office of Chief Counsel and the Executive Director.  

PSERB Resolution 2010-13
Re:   Toyota Motor Corporation
April 5, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") authorizes the Executive Director, acting on behalf of the Public School Employees' Retirement System ("PSERS"), to seek to serve as co-representative of the class in partnership with one or more public pension funds, in the action commenced in the United States District Court for the Central District of California, Case Nos. 2:10 CV 00922; 2:10 CV 01429; 2:10 CV 01429;  2:10 CV 01911; 2:10 CV 02196; and 2:10 CV 02253, against Toyota Motor Corporation and other named defendants ("Defendants"), relating to the publicly traded securities issued by Toyota Motor Corporation or its affiliates, provided there are no legal impediments to doing so, in accordance with the recommendation of Jeffrey B. Clay, Executive Director, concurred in by Gerald Gornish, Chief Counsel and Alan Van Noord, Chief Investment Officer.  Staff is directed to request the appointment of outside counsel by the Office of General Counsel and seek delegation of authority from the Attorney General for said litigation.   The terms and conditions of the legal services contract must be satisfactory to the Office of Chief Counsel and the Executive Director.  

PSERB Resolution 2010-14
Re:  Investment Objectives and Guidelines
April 30, 2010

The final terms and conditions of the contract must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing contract or by a memo to that effect appended to the implementing contract.

RESOLVED, that the Public School Employees' Retirement Board adopts the proposed changes to the Elections Procedures and Guidelines Policy pursuant to the recommendation of Terrill J. Savidge, Deputy Executive Director, dated April 8, 2010.

Resolved, that the Public School Employees' Retirement Board (the "Board") adopts the proposed PSERB Ethics Policy, effective July 1, 2010, as presented by Joseph E. Wasiak at the April 29, 2010 Bylaws/Policy Committee meeting.  

RESOLVED, that the Public School Employees' Retirement Board (the "Board") approves conducting an Open Enrollment for HOP for the 2011 Plan year in accordance with the attached recommendation of Mark Schafer as presented at the April 29, 2010, Health Care Committee meeting.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") approves contracting with Medicare Advantage and companion pre-65 managed care plans to fully participate in HOP effective January 1, 2011 in accordance with the attached recommendation of Mark Schafer as presented at the April 29, 2010, Health Care Committee meeting.

WHEREAS, PSERS staff, in implementing Resolution 2010-13, deemed it advisable to partner with one private fund in addition to three public pension funds ("Staff Action");

WHEREAS, Resolution 2010-13 was silent with respect to whether PSERS could partner with a private fund in addition to one or more public funds; and

WHEREAS, the Board affirms that the Staff Action was consistent with Resolution 2010-13,

NOW THEREFORE, it is hereby RESOLVED, that the Board ratifies the Staff Action to implement Resolution 2010-13.

WHEREAS, the Public School Employees' Retirement Board (the "Board") adopted Resolution 2010-13, on April 5, 2010, authorizing the Public School Employees' Retirement System ("PSERS") to seek to serve as co-lead plaintiff, in a group with one or more public pension funds, in the filed actions in the United States District Court for the Central District of California against Toyota Motor Corporation and other named defendants, alleging violations of the federal securities laws (the "Class Action Suit");

WHEREAS, PSERS, as one member of a group of five prospective plaintiffs (the "Group") has filed an application seeking to be a co-lead plaintiff in the Class Action Suit;

WHEREAS, the Judge to whom the Class Action Suit has been assigned issued an Order, dated April 23, 2010, among other things, directing statements from the prospective plaintiffs, such as PSERS, that are currently members of groups as to whether each would be willing to serve as lead plaintiff alone if the Court does not accept a group as lead plaintiff; and

WHEREAS, PSERS believes that as an alternative to being a co-lead plaintiff in the Group it can serve and fulfill the responsibilities as lead plaintiff alone on behalf of all shareholders of Toyota Motor Corporation;

NOW THEREFORE, it is hereby RESOLVED, that the Board authorizes the Executive Director, acting on behalf of PSERS, to respond to the Order issued by the judge in the Toyota Motor Corporation case, dated April 23, 2010, by submitting a statement to the Court stating that PSERS would be willing to serve as lead plaintiff alone if the Court does not accept a group as lead plaintiff in the Class Action Suit.  

RESOLVED, that the Public School Employees' Retirement Board (the "Board") adopts the proposed Investment Objectives and Guidelines Addenda listed below for the Public School Employees' Retirement System pursuant to the recommendation of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, dated May 24, 2010.

Addendum         Addendum Title

K                    U.S. High Yield Fixed Income Portfolios

K1                  Mortgage and Asset Backed Securities Portfolios

L                     Internally-Managed Treasury Inflation Protection Securities Portfolios

Q                    Global Core Plus Fixed Income Portfolios

Q1                  Emerging Markets Fixed Income Portfolios

Y                    Internally-Managed Short-Term Investment Pool

Y1                   LIBOR-Plus Short-Term Investment Pools

 
                     Internally-Managed Premium Assistance Program Portfolio

RESOLVED, that the Public School Employees' Retirement Board (the "Board") in accordance with the recommendation of the Third Party Administration Services Request For proposal Evaluation Committee, selects CoreSource, Inc., as the Third Party Administrator for the Health Options program and Premium Assistance program for the period commencing January 1, 2011, through December 31, 2013, renewable for up to two one-year periods upon mutual written consent of the parties, subject to negotiations of terms and conditions satisfactory to the Director, Health Insurance Office, the Office of Chief Counsel and the Executive Director, as evidenced either by the appropriate signatures on the implementing contract or by a memo to that effect appended to the implementing contract.

PSERB Resolution 2010 - 24
Re: Health Options Program 2011 Rates and Benefits: HOP Medical Plan, Pre-65 Medical Plan,  Basic and Enhanced Medicare Rx Options 
June 11, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") approves, effective January 1, 2011, the monthly premium rates and benefits as recommended in the report: 2011 Premium Rates and Benefits HOP Medical Plan, Pre-65 Medical Plan, Basic and Enhanced Medicare Rx Options.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") authorizes the Executive Director, acting on behalf of the Public School Employees' Retirement System ("PSERS"), to seek to serve as co-representative of the class in a group with one or more public pension funds or other appropriate and qualified plaintiffs, in the various class actions commenced in the United States District Court for the Eastern District of Louisiana and the Central District of California, against BP p.l.c. and other named defendants ("Defendants"), relating to the publicly traded securities issued by BP p.l.c. or its affiliates, provided there are no legal impediments to doing so, in accordance with the recommendation of Gerald Gornish, Chief Counsel, concurred in by Jeffrey B. Clay, Executive Director.   Staff is directed to request the appointment of outside counsel by the Office of General Counsel and seek delegation of authority from the Attorney General for said litigation.   The terms and conditions of the legal services contract must be satisfactory to the Office of Chief Counsel and the Executive Director.  

WHEREAS, pursuant to Section 8502(j) of the Public School Employees' Retirement Code (PSERC), 24 Pa.C.S. 8502(j), the Public School Employees Retirement Board (PSERB), required its actuary to conduct the June 30, 2009 annual actuarial valuation of the Public School Employees' Retirement System (PSERS); and

WHEREAS, Section 8502(k) of the PSERC, 24 Pa.C.S. 8502(k) provides:

The board shall, each year in addition to the itemized budget required under section 8330 (relating to appropriations by the Commonwealth), certify to the employers and the Commonwealth the employer contribution rate expressed as a percentage of members' payroll necessary for the funding of prospective annuities for active members and the annuities of annuitants, and certify the rates and amounts of the normal contributions as determined pursuant to section 8328(b) (relating to actuarial cost method), accrued liability contributions as determined pursuant to section 8328(c), supplemental annuities contribution rate as determined pursuant to section 8328(d) and the experience adjustment factor as determined pursuant to section 8328(e) and premium assistance contributions as determined pursuant to section 8328(f), which shall be paid to the fund and credited to the appropriate accounts. These certifications shall be regarded as final and not subject to modification by the Budget Secretary. ; and 

WHEREAS, on December 11, 2009, the PSERB, in accordance with Sections 8502(j) and (k) of the PSERC, adopted PSERB Resolution 2009-32, which states:

RESOLVED, that the Public School Employees Retirement Board hereby accepts the June 30, 2009 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 8.22% for Fiscal Year July 1, 2010 through June 30, 2011. ; and

WHEREAS, S.B. 1042, was passed by the Pennsylvania House and Senate on July 3, 2010 and signed by the Governor on July 6, 2010, thereby enacting Act 2010-46; and

WHEREAS, Section 3 of Act 2010-46 added, inter alia, Article XVII-N, Section 1701-N to the Fiscal Code; and

WHEREAS, Section 1701-N directs the PSERB to recertify PSERS employer contribution rate for Fiscal Year July 1, 2010 throughJune 30, 2011, as follows:

Notwithstanding any other provisions of law to the contrary, the Public School Employees' Retirement Board shall, effective for the fiscal year beginning July 1, 2010, recertify to the Secretary of the Budget and the employers, as defined in 24 Pa.C.S. 8102 (relating to definitions), within 20 days of the effective date of this section, the employer contribution rate expressed as a percentage of members' payroll necessary for the funding of prospective annuities for active members and the annuities of annuitants to be 5.00%, plus the premium assistance contribution rate of .64% in accordance with 24 Pa.C.S. 8328(f) (relating to actuarial cost method), and also recertify the rates, factors and amounts set forth in 24 Pa.C.S. 8502(k) (relating to administrative duties of board) to reflect the impact of the recertified rates provided in this section. This recertification shall supersede the prior certification for the fiscal year beginning July 1, 2010, for all purposes.

 NOW THEREFORE IT IS RESOLVED, that the PSERB, as directed by Article XVII-N, Section 1701-N of the Fiscal Code, hereby recertifies the employer contribution rate for Fiscal Year July 1, 2010 through June 30, 2011 from 8.22% to 5.64%, with 5% consisting of the pension component of the rate and .64% consisting of the premium assistance component of the rate.

RESOLVED FURTHER, that the PSERB directs its actuary, Buck Consultants to reflect the re-certification required by Article XVII-N, Section 1701-N of the Fiscal Code in PSERS June 30, 2010 actuarial valuation.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") retains Courtland Partners, LTD as the Fund s Real Estate Consultant for a contract term not to exceed five-years.  The final terms and conditions of the contract must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing contract or by a memo to that effect appended to the implementing contract.

RESOLVED, that the Public School Employees' Retirement Board (the "Board") invests an amount equal to its allocable share, plus reasonable normal investment expenses, in the Stockbridge Real Estate Fund II Recapitalization Plan, in accordance with the recommendation of Charles J. Spiller, Director of Private Markets and Real Estate, dated August 11, 2010.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the Office of Executive Director, as evidenced either by the appropriate signatures on the implementing investment contract or by a memo to that effect appended to the implementing investment contract.

PSERB Resolution 2010-30
Re:  Investment Objectives and Guidelines
August 12, 2010

RESOLVED, that the Public School Employees' Retirement Board (the "Board") adopts the proposed changes to page 5 and Exhibit C of the Investment Policy Statement, Objectives, and Guidelines and Investment Objectives and Guidelines Addenda listed below for the Public School Employees' Retirement System pursuant to the recommendation of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, dated July 23, 2010.

RESOLVED, that the Public School Employees' Retirement Board rejects all Proxy Research and Voting Services proposals pursuant to the recommendation of John B. Kemp, Investment Operations Manager.