MIN UTE S

OF THE

BOARD OF PENSION COMMISSIONERS MEETING OF FEBRUARY 11, 1982

The Board of Pension Commissioners of the City of Los Angeles met in Room 155, City Hall South, on Thursday, February 11, 1982, at 9:45 a.m.

COMMISSIONERS: Arthur Burdorf, President Pro Tern Sam Diannitto Ronald S. W. Lew Olga Marcus Garo Minassian Karl L. Moody

DEPARTMENT OF PENSIONS: Wm. S. Hutchison, Acting Manager-Secretary James J. McGuigan, Asst. Manager-Fiscal Jerry Bardwell, Investment Officer

CITY ATTORNEY: Siegfried O. Hillmer, Assistant City Attorney

PRESENTATION OF MINUTES OF THE MEETINGS OF JANUARY 29, 1981; FEBRUARY 5, 1981; FEBRUARY 12, 1981; FEBRUARY 19, 1981; FEBRUARY 26, 1981; MARCH 5, 1981 AND MARCH 12, 1981

Approved. Motion by Commissioner Lew, seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Moody, and President Pro Tern Burdorf - 5; noes, none.

INVESTMENTS

President Pro Tern Burdorf referred to Item No. 2 and asked if any of the investment advisors were at today's meeting. Mr. Jack Wood of Wright Investors' Service came forward for presentation and submitted his stock purchase list for approval of the Board.

STOCK PURCHASE RESOLUTION NO. 82125 2525 NEW SYSTEM GENERAL PENSION FUND

After discussion by the Board it was moved by Commissioner Diannitto that upon the advice of investment counsel, the Manager-Secretary and/or Wright Investors' Service be authorized to purchase up to $3,560,000 of capital stock in each of the following companies at the market price, plus commission and charges:

ARA Services Bausch & Lomb Abbott Laboratories Beatrice Foods Alco Standard Beckman Instruments American Brands Becton Dickinson American Broadcasting Belco Petroleum American Cyanamid Bendix Corporation American Home Products Big Three Industries American Hospital Supply Black & Decker American Standard Blue Bell Incorporated American Telephone & Telegraph Borden Incorporated Ametek Incorporated Briggs & Stratton AMP, Incorporated Bristol-Myers Amsted Industries Bucyrus-Erie Archer Daniels Burndy Arkansas-Louisiana Gas r CBS Incorporated ARK LA CPC International Atlantic Richfield Campbell Soup Auto Data Processing Campbell Taggart Avnet Incorporated Capital Cities Comm. Avon Products Carlisle Corporation Baker International Carnation Company Bandag Incorporated Carpenter Technology Bank of New York Caterpillar Tract Bank of America Central & South West Bard (C.R.) Incorporated Central Tel & Utilities Barry Wright Cessna Aircraft Baxter Trav. Laboratories Chesebrough-Pond's ~~------835

Cleveland-Cliffs Johnson & Johnson Clorox Company Jostens Incorporated Coca-Cola Company Joy Manufacturing Colgate-Palmolive K Mart Corporation Colt Industries Kellogg Company Columbia Gas Kennametal Incorporated Combustion Engines Kerr-McGee Corporation Cone Mills Kimberly-Clark Consolidated Foods Knight-Ridder Consolidated Freightways Lenox Incorporated Continental Group Lilly (Eli) & Company Continental Illinois Loctite Corporation Cooper Industries Longs Drug Stores Dana Corporation Lubrizol Corporation Dayton Hudson Lucky Stores Deere & Company MCA Corporation Delta Airlines Macy (R.H.) Company Deluxe Check Printers Malone & Hyde Dennison Manufacturing Manufacturing Hanover Dexter Corporation Masco Corporation Disney Products May tag Company Dr. Pepper McGraw-Hill Donnelley & Sons Melville Corporation Dover Corporation Mercantile Texas Corporation Dresser Industries Merck & Company Dun & Bradstreet Midcon Corporation E. G. & G. Incorporated Midland-Ross Eastman Kodak Milton Bradley Eaton Corporation Minnesota Mining Eckerd (Jack) Mobil Corporation Edison Brothers Stores Morgan (J.P.) Company Emerson Electric Motorola Emery Air Freight NBD Bancorp Emhart Corporation Nalco Chemicals Enserch Corporation National Medical Care Equitable Gas National Service Industries Ethyl Corporation Northwest Bancorp Ex-Cell-O Norton Company Exxon Corporation Norton Simon FMC Corporation Nucor Corporation Fed. Dept. Stores ONEOK, Incorporated First City Bank of Texas Pacific Lumber Florida Power & Light Panhandle Eastern Florida Power Corporation Parker-Hannifin Fort Howard Paper Peoples Energy Foxboro Company Pepsico, Incorporated Gannett Company Perkin Elmer General Electric Petro lane Incorporated General Foods Pfizer Incorporated General Instrument Phillips Petroleum General Mills Pioneer Corporation General Signal Pitney Bowes Genuine Parts Proctor & Gamble Gerber Products Public Service of Indiana Grainger (W.W.) Quaker Oats Great Northern Nekoosa Ralston Purina Halliburton Company Raytheon Company Harsco Corporation Republic of Texas Corporation Heinz (H.J.) Company Revco D.S. Incorporated Helmerich & Payne Revlon Incorporated Heublein Incorporated Reynolds (R.J.) Industries Hewlett-Packard Rite Aid Corporation Hoover Universal Rochester Tel Houston National Gas Rockwell International Hughes Tool Company Rollins Incorporated Illinois Tool Works Rorer Group Ingersoll-Rand Rubbermaid Interco Incorporated Schering-Plough International Business Machines Schlumberger Limited Interfirst Scott & Fetzer International Flavors & Fragrances Internorth, Incorporated Signode Corporation Thiokol Corporation Smith International Thomas & Betts SmithKline Corporation Time Incorporated Snap-On Tools Times Mirror Sonat Incorporated Timken Company Southe rn Un ion Transway International South Western Public Services Tucson Elec. Power Company Sperry Corporation Union Camp Corporation Square D Company Union Oil of California Squibb Corporation Union Pacific Standard Brands Paint U. S. Gypsum Standard Oil of California U.S. Shoe Corporation Standard Oil of Indiana U.S. Tobacco Stanley Works United Technologies Stauffer Chemical United Telecomms Sterling Drug Universal Leaf Tobacco Stone & Webster Upjohn Company Sundstrand Corporation VF Corporation Super Value Stores Vulcan Materials TRW Incorporated Texas Commerce Warner Communications Texas Gas Trans Waste Management Texas Instruments Weyerhaeuser Texas Oil & Gas Winn-Dixie Stores Texas Utilities Witco Chemical Textron Incorporated Xerox

THE APPROVED WRIGHT INVESTMENT LIST STOCKS FOR PURCHASE UNDER THE NEW CHARTER REVISION

PART II

CBI Industries Medtronic Incorporated Central Louisiana Energy Nabisco Brands Crown Cork & Seal Nicor Incorporated Dart & Kraft Incorporated Phibro Corporation Digital Equipment Purex Industries Engelhard Corporation Richardson-Vicks Incorporated First Interstate Bancorp SFN Companies Houston Industries TECO Energy Louisiana Land & Expl. Tektronix Incorporated Texas Eastern Corporation

This authorization for stock purchase is to remain in effect for 90 days after this date. The motion was seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Moody and President Pro Tem Burdorf - 5; noes, none.

REPORT ON ACTUARIAL VALUATION AS OF JUNE 30, 1981, PRESENTED BY MARTIN E. SEGAL COMPANY

Mr. James Laws of Martin E. Segal Company came forward. Discussion ensued regarding the Actuarial Valuation Report as of June 30, 1981. The Board agreed that more information is needed, and Jim Laws stated he will get this information to the Board by next week's Board meeting.

CONSIDERATION OF MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 1982-83.

President Pro Tem Burdorf deferred this item for two weeks.

NATIONAL CONFERENCE ON PUBLIC EMPLOYEE RETIREMENT SYSTEMS, 41ST ANNUAL CONVENTION, APRIL 4-8, 1982, WASHINGTON, D.C.

The Acting Manager-Secretary stated that the National Conference on Public Employee Retirement Systems' 41st Annual Convention will be held April 4-8, 1982, at Washington, D. C. After discussion by the Board, it was moved by Commissioner Diannitto that two commissioners and one staff member be authorized to attend the National Conference on Public Employee Retirement Systems' 41st Annual Convention to be held April 4-8, 1982, at Washington, D. C., and that an appropriation not to exceed $1800 per person be authorized to covar the cost of travel and incidental expenses for each person attending, which motion was seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Moody and President Pro Tem Burdorf - 5; noes, none. 837

CONSIDERATION OF CURRENT DEPARTMENT OF PENSIONS PROCEDURES AND LEGAL REQUIREMENTS RELATED TO OFFSET OF WORKERS COMPENSATION AWARDS FROM DISABILITY PENSION BENEFITS

A memorandum regarding this issue was submitted to the Board members by Deputy City Attorney Mary Jo Curwen in which she commented that the Board is duty bound by the City Charter to offset the payments, and that a Charter change is needed to remedy this problem. After discussion, the Board concluded that the Charter change language should read the same as in Article XXXV, the New Safety Members Pension Plan. The Board directed staff to initiate a Charter change in regard to the Workers Compensation offset procedure.

Commissioner Minassian entered the Board room toward the end of the above discussion.

INVESTMENT POLICY CHANGES - MINOR PROVISIONS TO THREE SECTIONS

President Pro Tern Burdorf referred to Item No 3 and asked the Assistant Manager-Fiscal, Mr. James J. McGuigan, if all the input from the employee groups and the investment advisors has been received. Mr. McGuigan stated the revised Investment Policy reflects these suggestions. After discussion, Commissioner Moody moved to implement the changes as so stated, which motion was seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none.

OLD BUSINESS

The Acting Manager-Secretary, Mr. Wm. S. Hutchison, informed the Board that the issue of the inclusion of the ambulance attendants in to the Pension System will be before the City Council on February 12, 1982.

President Pro Tern Burdorf referred to the letters being sent to the Fire Department and the Fire Commission and instructed staff to change the letter to the Fire Commission, giving them the opportunity to have a participant from their commission on the committee to study stress/psychological disabilities, and to also extend that invitation to the employee groups.

The Acting Manager-Secretary informed the Board that on February 9, 1982, the City Council approved the "minority" Ad Hoc Committee report, thereby deferring establishment of the proposed new Investment Board for further study. The vote was 10-2. Councilman Bernardi and Councilwoman Picus voted against the minority report. The "minority" report had been presented by Councilman Braude. President Pro Tern Burdorf directed staff to write to Councilman Braude complimenting him on the minority report which he presented to the Council, and to also write to the employee groups thanking them for their participation, and to thank everyone who testified at the hearings.

The Acting Manager-Secretary next reported that the City Council approved returning the $22 million to the Pension Fund, which monies have been held in the reserve fund. Mr. Hutchison recommended the Board instruct staff to compute the amount of lost earnings and draft a suitable letter to the Council requesting that an appropriation covering the lost earnings be appropriated to the Fire and Police Pension System.

NEW BUSINESS

The Acting Manager-Secretary informed the Board that staff released the transcript on the Lloyd O'Callahan hearing to the Herald Examiner.

Commissioner Diannitto referred to a personal letter he had received from Ben Cruse from the Employees Retirement System in Newark and asked staff to repond to this letter, congratulating Mr. Ben Cruse on his reelection to another three year term for the tenth time.

Commissioner Lew announced he has been appointed as a Judge to the Municipal Court and has tendered his resignation from the Board to the Mayor. President Pro Tern Burdorf asked staff to get together with Commissioner Diannitto on the wording of the letter. DISCONTINUE PENSIONS - ARTICLE XVII - 2

Harry Elliott Fire Service Retired 09-03-58 Died 12-10-81 Mabel Ann Wood Fire Widow Retired 01-17-61 Died 01-15-82 Approved. Motion by Commissioner Lew, seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none.

DISCONTINUE PENSIONS - ARTICLE XVIII - 2

Charles B. A. Parker Fire Service Retired 07-06-75 Died 12-17-81 Robert C. Madlock Police Disab. Retired 11-27-76 Died 01-07-82

Approved. Motion by Commissioner Diannitto, seconded by Commissioner Marcus and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none.

SERVICE PENSIONS - ARTICLE XVIII - 5

Captain III Appt'd 02-05-62 20 Years, 2 Days 40.0110% Michael R. Hoff Eff: 02-07-82 NPB: $4,510.08 $1,804.53

Sergeant I Appt'd 10-01-56 25 Years, 115 Days 55.9452% Robert C. Flanagan Eff: 01-24-82 NPB: $3,299.04 $1,845.65 (Assigned to Detective III)

Sergeant I Appt'd 10-01-56 25 Years, 88 Days 55.7151% Robert K. Hutchinson Eff: 12-28-81 NPB: $3,299.04 $1,838.06 (Assigned to Detective III)

Sergeant I Appt'd 12-11-61 20 Years, 30 Days 40.1644% Kathleen S. Kinsey Eff: 01-10-82 NPB: $2,959.74 $1,188.76 (Assigned to Detective II)

Detective II Appt'd 10-01-56 25 Years, 50 Days 55.4110% Joseph F. Scanlon Eff: 01-24-82 NPB: $2,959.74 $1,640.02

Approved. Motion by Commissioner Marcus, seconded by Commissioner Minassian and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none.

WIDOW'S OR WIDOWER'S PENSION - ARTICLE XVII - 1

Fluctuating Sal. Rank Member's at Date Rate Effective Monthly Name Class of Death % Date Amount

Anna Marie Elliott Fire $2,575.20 50% 12-11-81 $1,287.60 (Harry Elliott) Service Approved. Motion by Commissioner Minassian, seconded by Commissioner Moody and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none. ELIGIBLE SURVIVING SPOUSE'S PENSION - ARTICLE XVIII - 1 Member's Normal Rate Effective Monthly Name Class Pen. Base % Date Amount

Nova E. Madlock Police $2,728.32 55% 01-08-82 $1,500.58 (Robert C. Madlock) Disab. Member's CIL 886.84 Total $2,387.42

Approved. Motion by Commissioner Moody, seconded by Commissioner Lew and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none. FINDINGS OF FACT - ARTICLE XVIII - 1

FIRE

Michael Hayes

Approved. Motion by Commissioner Lew, seconded by Commissioner Diannitto and adopted by the following vote: ayes, Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf - 6; noes, none.

At this point in the proceedings, President Pro Tern Burdorf recessed the meeting.

DISABILITY CASES - NEW - ARTICLE XVIII - 3

Detective I Brian W. Galbally

Deferred. President Pro Tern Burdorf directed that this case be deferred because of absence of Universal Surveillance Services investigator needed for testimony.

Police Officer II Hans G. Ignatiuk

Service-connected disability pension granted, effective January 19, 1982, in the monthly amount of $1,548.34 or 65% of $2,382.06, with review in two years and three medical examinations. Motion made by Commissioner Minassian and seconded by Commissioner Moody; ayes; Commissioners Diannitto, Lew, Marcus, Minassian, Moody and President Pro Tern Burdorf -6; noes, none. Mr. Ignatiuk was present and was represented by Rick Helms of the Police Protective League.

Police Officer II Shane Pappas

Withdrawn. Mr. Pappas withdrew his request for a pension at the conclusion of his testimony before the Board. Mr. Pappas was present. Capt. James Morgan, Mr. Pappas' Commanding Officer, Police Department, testified regarding Mr. Pappas.

DISABILITY CASE - REVIEW - ARTICLE XVIII - 1

Police Officer II Ronald L. Deurmeier

Deferred. President Pro Tern Burdorf directed that this case be deferred at the request of the applicant's attorney, W. Peter Godfrey. Mr. Deurmeier was present.

DISABILITY CASES - NEW - ARTICLE XVIII - 5

Police Officer III Anthony C. Evans

Service-connected disability pension granted, effective December 11, 1981, in the monthly amount of $1,290.21 or 50% of $2,580.42, with no further medical reviews. Motion made by Commissioner Moody and seconded by Commissioner Diannitto; ayes; Commissioners Diannitto, Marcus, Minassian, Moody and President Pro Tern Burdorf -5; noes, none. Mr. Evans was present with his attorney Robert Scott. Capt. Terrence Dymeat, Mr. Evans' Commanding Officer, Capt Jack Smith, Mr. Evans' Commanding Officer, Sgt. Ronald E. Roddy, and Sgt. James Darr, Co-workers, testified regarding Mr. Evans.

Police Officer II Donald P. Kiefer

Service-connected disability pension granted, effective November 1, 1981, in the monthly amount of $1,393.74 or 50% of $2,787.48, with no further medical reviews. Motion made by Commissioner Minassian and seconded by Commissioner Diannitto; ayes; Commissioners Diannitto, Minassian, Moody and President Pro Tern Marcus -4; noes, none. Mr. Kiefer was present with his attorney Mary Ann Healy.

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Police Officer II Raymond E. McCarty

Deferred. President Pro Tern Burdorf directed that this case be deferred due to time constraints. Mr. McCarty was not present but was represented by his attorney Bruce P. wolfe.

Police Officer III Alan C. Koch

Deferred. President Pro Tern Burdorf directed that this case be deferred due to time constraints. Mr. Koch was not present but was represented by his attorney, Ronald Stillman.

Sergeant I Jerry D. Russell

Deferred. President Pro Tern Burdorf directed that this case be deferred due to time constraints. Mr. Russell was not present but was represented by his attorney, Ronald Stillman.

At this point in the proceedings, President Pro Tern Burdorf called for adjournment.

Acting Manager Secretary