City of Omaha Police and Fire Retirement Fund

							                                           MINUTES


POLICE AND FIRE RETIREMENT SYSTEM
BOARD OF TRUSTEES
OMAHA/DOUGLAS CIVIC CENTER, LEGISLATIVE CHAMBERS
1819 FARNAM STREET, OMAHA, NEBRASKA
THURSDAY, MAY 20, 2010, 1:30 P.M.

MEMBERS PRESENT:              James Sklenar, Chairperson
                              Michael Henrich, Vice Chairperson
                              George Merithew, Secretary
                              Richard O’Gara, Human Resources Director
                              Pam Spaccarotella, Finance Director
                              Robert A. Mooney, Outside Member

MEMBER ABSENT:                Tom Mulligan, Council Member

AMONG OTHERS PRESENT:                Jo Cavel, Deputy City Attorney
                                     Paul Murphy, Human Resources
                                     Toni Hansen, Recording Secretary

OATH OF OFFICE

Newly appointed Board member Tom Mulligan was not present at the meeting.

PRESENTATION OF PLAQUE TO FORMER BOARD MEMBER TONY LANG

Former Board member Tony Lang was not present at this time for the meeting.

MONEY MANAGERS

Timbervest
Hotchkis & Wiley
Denver Investments
Fuller & Thaler
Lazard

Money managers from Timbervest, Hotchkis & Wiley, Denver Investments, and Fuller & Thaler
provided their reports to the Board members. Representatives from Lazard were not available to
report to the Board.

REPORT OF INVESTMENT CONSULTANT

Mr. Adam Strumpf with DeMarche Associates gave a brief overview of the markets of the
Omaha Police and Fire Pension Fund. Mr. Strumpf reported that at the end of last quarter we
started with $403,000,000, ending with $418,000,000, making $15,000,000 this quarter. As far
as a return on investment for the portfolio, that translates into an above average return. The
relative objective returned 3.4% for the quarter, our portfolio returned 3.9%. Mr. Strumpf stated
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 2 of 10


that more importantly are we achieving the return to meet the long term objective of 8%, which
for the quarter would be about 2%. We are returning 4% for the quarter.

Mr. Strumpf was happy to report that next quarter will be the 30th anniversary working with the
Police and Fire System.

PRESENTATION OF PLAQUE TO FORMER BOARD MEMBER TONY LANG

At this time Chairperson Jim Sklenar presented former Board member Tony Lang with a plaque
and thanked him for his years of service to the Police and Fire Pension Board. Mr. Lang served
on the Board from May, 2003, to February, 2010.

Mr. Lang spoke to the Board and said it was an honor to serve on the Board and appreciates all
of the help he received from everyone over the years.

FINANCIAL REPORT

Pam Spaccarotella was not present at the meeting at this time. Dick O’Gara noted on page 2 of
the Financial Report that the numbers for 10/1/09 through 12/31/09 are the same as the numbers
for 1/1/10 through 3/31/10.

MOTION by O’Gara, second by Mooney, to lay over approval of the financial report to the next
meeting.

VOTING:       Aye:    Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       5-0 (2 absent)

INVESTMENT COMMITTEE

Chairperson Sklenar reported that the Investment Committee met today with the consultant.
Overall, it was a very positive meeting. The first quarter results were encouraging. Chairperson
Sklenar reported that Schroder will be funded June 1.

APPROVAL OF MINUTES: APRIL 15, 2010, REGULAR MEETING

MOTION by O’Gara, second by Merithew, to approve the minutes from the April 15, 2010,
meeting.

VOTING:       Aye:    Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       5-0 (2 absent)

OLD BUSINESS

REQUEST FOR APPROVAL SERVICE-CONNECTED DISABILITY
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 3 of 10



GRUTTEMEYER, John M.; Fire Captain, Fire Department
Age 45                Served 22 years 3 months
Retirement Date:      Monthly Pension: $4,120.05

Captain John Gruttemeyer and his attorney, Mr. Ed Pohren, were present at today’s meeting.
Mr. Pohren indicated there were many exhibits related to this request for a disability. Mr.
Pohren stated he felt what was missing in all of the reports and exhibits was a review by a
specialist in Post Traumatic Stress Disorder (PTSD). He introduced Dr. Hunziker’s testing and
review of Captain Gruttemeyer. Mr. Pohren told the Board that Dr. Hunziker has worked at the
Veteran’s Administration Hospital for 20 years and as part of his part-time practice he
specializes in the treatment of PTSD.

Mr. Pohren stated that Captain Gruttemeyer suffers from PTSD that was either lit up or
aggravated by an incident that took place in September of 2006. Mr. Pohren added that Dr.
Hunziker reports that Captain Gruttemeyer is permanently disabled and not capable of returning
to work at the present time.

Captain Gruttemeyer reminded the Board of the traumatic events of the September 20, 2006, fire
in which two people lost their lives. Mr. Pohren presented the Board with an article from
Firehouse.com regarding the incident. This article was entered into the record as Exhibit 10.

Mr. Pohren referred to clinical notes dated December of 2006 when Captain Gruttemeyer went to
the emergency room with chest pains, shortness of breath, and tingling in his hands. Mr. Pohren
stated that at the time these symptoms came on for reasons that Captain Gruttemeyer was not
aware of but that the symptoms do correlate to having PTSD. These clinical notes were not
included in any of the exhibits presented to this point. It was entered into the record as Exhibit
11.

The discussion continued regarding the tests that Captain Gruttemeyer underwent, the scoring
and results from those tests.

George Merithew asked Captain Gruttemeyer if he was being treated for PTSD. Captain
Gruttemeyer indicated that he is not currently being treated for PTSD, but continues to see his
counselor Dr. Buda Darden.

MOTION by Merithew, second by Spaccarotella, to deny the disability pension for Captain
Gruttemeyer based on the record before us and the totality of the record.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

NEW BUSINESS

REQUEST FOR APPROVAL REFUND OF PENSION CONTRIBUTIONS
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 4 of 10



Arthur Brumfield
Police Department
01/09/95 – 04/05/10                                  Amount $132,174.13

MOTION by Mooney, second by Merithew, to approve the refund of pension contributions of
Arthur Brumfield.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

REQUEST FOR APPROVAL SERVICE-CONNECTED DISABILITY

PRAZAN, Jeffrey J.; Fire Captain, Fire Department
Age 47                      Served 25 years
Retirement Date: 04/30/10 Monthly Pension: $5,703.29

Captain Jeffrey Prazan was present at today’s meeting. Captain Prazan is requesting a disability
pension for Hepatitus C resulting from an incident he thought was in the year 2000. He was on
worker’s compensation for a couple of years. Captain Prazan is full duty at the current time, but
he wanted it on the record that he is preserving his right to come back to the Board in the future
if his condition worsens.

MOTION by Merithew, second by Henrich, to deny the disability based on the fact that Captain
Prazan is not disabled at this time and that he preserves his right to come back to the Board at a
later date if that status should change.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

Captain Prazan requested a regular service retirement at this time.

Darren Garrean, representative from the Firefighters Union was present and requested that
Captain Prazan’s retirement be retroactive to April 30 with pension effective May 1. Mr.
Garrean indicated that the calculations for Captain Prazan’s pension were incorrect because of
his comp payout.

The Board discussed Captain Prazan’s date of retirement and date of pension in regard to the
comp payout. Mr. Murphy told the Board that he received confirmation from Payroll that
Captain Prazan’s comp payout was being made on May 20, 2010.

Paul Murphy, Benefits & Compensation Manager, indicated that the Board could approve the
amount shown today and then Human Resources could research different options. This then
could be brought back to the Board as a request for a recalculation.
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 5 of 10



MOTION by Merithew, second by Mooney, to approve the service retirement for Prazan with
retirement effective April 30, pension starting May 1 with the ability to amend the calculation.

VOTING:        Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:        6-0 (1 absent)

RODINO, Thomas P.; Fire Captain, Fire Department
Age 46                    Served 25 years
Retirement Date: 04/30/10 Monthly Pension: $6,853.66

Captain Thomas Rodino was present at today’s meeting. Captain Rodino does have some
cardiac issues. He has not missed any work, although he should have possibly been light duty
for a short time. At this time, Captain Rodino is not claiming a disability but he does want to
preserve his right to come back to the Board in the future.

MOTION by Merithew, second by Henrich, to deny the service connected disability for Thomas
Rodino and allow him to preserve his right in the event his disability should manifest itself.

VOTING:        Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:        6-0 (1 absent)

MOTION by Merithew, second by Mooney, to approve the service retirement for Thomas
Rodino effective April 30 with pension beginning May 1.

VOTING:        Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:        6-0 (1 absent)

REQUEST FOR APPROVAL SERVICE RETIREMENT DATES/PENSION AMOUNTS
Employee                   Title                    Age     Yrs Service     Retire          Pension $
                                                                            Date
Benak, Ronald J.           Battalion Fire Chief     49      25 yrs          04/30/10        $7,276.99
Clifton, Scott E.          Fire Captain             49      25 yrs          05/01/10        $6,063.41
Hawley, Richard D.         Firefighter              48      25 yrs          05/01/10        $4,779.02
Johnson, Steven E.         Fire Captain             49      25 yrs          04/30/10        $6,277.27
Keefer, Timothy J.         Fire Captain             54      21 yrs 6 mos    05/01/10        $5,524.42
Moran Jr, Robert F.        Fire Apparatus Eng       46      25 yrs          05/01/10        $5,484.67
Nekola Jr, Joseph G.       Fire Captain             49      25 yrs          05/01/10        $5,821.64
Pirruccello, John J.       Police Officer           45      20 yrs 6 mos    04/20/10        $5,089.44
Quinlan, Thomas M.         Battalion Fire Chief     51      21 yrs 6 mos    04/25/10        $5,554.20
Recic, Thomas R.           Police Officer           45      21 yrs 1 mo     04/30/10        $5,248.41
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 6 of 10


Roberts Jr, William P.       Fire Captain           49     25 yrs         04/30/10    $6,991.79
Sorich, David M.             Fire Captain           45     25 yrs         05/01/10    $6,144.10
Spencer, Charles R.          Firefighter            49     25 yrs         04/30/10    $4,719.84

MOTION by Merithew, second by Mooney, to approve the above service retirement dates and
pension amounts.

VOTING:       Aye:       Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:          6-0 (1 absent)

REQUEST FOR APPROVAL WIDOW’S PENSION

KIELTY, Debra A., widow of Police Officer Kirk L. Tynes, who deceased on 04/26/10
Pension Effective: 04/27/10       Monthly Pension: $2,298.21

MOTION by Merithew, second by Mooney, to approve the above widow’s pension.

VOTING:       Aye:       Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:          6-0 (1 absent)

REQUEST FOR APPROVAL CHILD’S PENSIONS

TYNES, Elijah T., child of Police Officer Kirk L. Tynes, who deceased on 04/26/10
Pension Effective: 04/27/10         Monthly Pension: $984.95

TYNES, Jordan N., child of Police Officer Kirk L. Tynes, who deceased on 04/26/10
Pension Effective: 04/27/10        Monthly Pension: $984.95

TYNES, Avram N., child of Police Officer Kirk L. Tynes, who deceased on 04/26/10
Pension Effective: 04/27/10       Monthly Pension: $984.95

MOTION by Merithew, second by Mooney, to approve the above three child’s pensions.

VOTING:       Aye:       Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:          6-0 (1 absent)

SWANSON, Anthony, child of retired Fire Apparatus Engineer, Donald E. Swanson, who
deceased on 04/30/10
Pension Effective: 05/01/10      Monthly Pension: $498.94

Anthony Swanson is an adult child of retired Fire Apparatus Engineer, Donald E. Swanson, who
passed away on April 30, 2010.
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 7 of 10



Mr. Murphy informed the Board that in this particular death there was a surviving family
member who is currently age 36. Mr. Murphy referred to a report from Alegent Health dated
January 30, 2009, in regard to Mr. Swanson’s medical status. There is a provision for
dependents who are disabled prior to the age of 18.

The Board members had questions and concerns as to when Mr. Swanson became disabled and
wanted additional medical reports in regard to his disability.

MOTION by Merithew, second by O’Gara, to lay over the Swanson request for a child’s pension
to give Paul Murphy time to complete the record.

VOTING:       Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

REQUEST FOR APPROVAL PAYMENT OF DEATH BENEFITS

KIELTY, Debra A., beneficiary of Police Officer Kirk L. Tynes, who deceased on 04/26/10
Death Benefit: $66,102.40

MOTION by Merithew, second by Mooney, to approve the above death benefit.

VOTING:       Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

REQUEST FOR APPROVAL RECALCULATION OF PENSION AMOUNT

JAIXEN, Daniel J., Police Officer, Police Department
Retirement Date:      12/25/09
Original Pension:     $4,012.59
Recalculated Pension: $3,827.62

The Board questioned why Daniel Jaixen’s pension was recalculated down. Ms. Spaccarotella
was concerned that he has been receiving overpayments since the time of his retirement.

Mr. Murphy did not have specific information as to why this was being recalculated.

MOTION by O’Gara, second by Merithew, to lay over the recalculation of Daniel Jaixen’s
pension.

VOTING:       Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 8 of 10


MEDICAL BILLS

Blue Cross Blue Shield                       $160,353.25
Prime Therapeutics                           $ 13,680.83

MOTION by Merithew, second by O’Gara, to approve the above two medical bills in the
amounts indicated above.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

FINANCIAL REPORT – continued

MOTION by Mooney, second by Merithew, to return to the Financial Report.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)

Ms. Spaccarotella reported that the balance at the beginning of April was $400,872.189.99, total
receipts for April were $18,652,467.87, the total expenses were $4,781,632.13, which leaves a
balance of $414,743,025.73.

It was brought to Ms. Spaccarotella’s attention that on page 2 of the financial report the numbers
for both time frames were the same. Ms. Spaccarotella stated that the bottom numbers are for
the year and the top numbers are for the first quarter and since we are in the first quarter, the
numbers are the same. Ms. Spaccarotella indicated the heading is incorrect, but the numbers are
correct. The dates listed should be 1-1-2010 through 12-31-2010.

MOTION by Mooney, second by Merithew, to approve the Financial Report.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)


MOTION by Mooney, second by O’Gara, to return to the order of the agenda.

VOTING:        Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:       6-0 (1 absent)


DISCUSSION/ACTION
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 9 of 10


Approval of contract with Milliman – January 1, 2010, Actuarial Valuation

Ms. Spaccarotella made a motion to lay this over because Jo Cavel requested changes to the
Milliman agreement and we have not received a response in regard to those changes.

MOTION by Spaccarotella, second by Merithew, to lay over approval of the contract with
Milliman.

VOTING:        Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:        6-0 (1 absent)

Pension Overpayments

Ms. Spaccarotella provided to the Board overpayment pension policies from several
municipalities and states. Ms. Spaccarotella has not drafted a policy and wanted to know if the
board was interested in setting up a policy.

Mr. O’Gara stated there was good information in the policies presented and thought a policy
should be put together.

Ms. Spaccarotella will put together a draft and present it for discussion at the next meeting.
Chairperson Sklenar asked that Ms. Spaccarotella provide Jo Cavel with a copy of the draft.

Single Custodian Recommendation

Ms. Spaccarotella stated that the investment committee met with US Bank, the custodian for the
Police and Fire Retirement System, and Wells Fargo, the custodian for the Civilian Retirement
System in regard to the proposal for joint custodial services by a single provider.

Ms. Spaccarotella provided a memo to the Board that detailed why the Investment Committee
was recommending the approval of Wells Fargo as the single provider of joint custodial services
for both the City of Omaha Police and Fire Retirement System and the City of Omaha
Employee’s Retirement System.

MOTION by Merithew, second by O’Gara, to approve Wells Fargo as the single provider of
joint custodial services.

VOTING:        Aye:    Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:        6-0 (1 absent)

Update RFP for Actuarial Services

Ms. Spaccarotella reported that Sheri Larsen from the Finance Department is preparing a draft
RFP to send to the committee members for review and commentary. The intention is to engage
CITY OF OMAHA POLICE AND FIRE RETIREMENT SYSTEM
May 20, 2010
Page 10 of 10


Milliman for the valuation as of January 1, 2010 and to look for an RFP for actuarial services for
a five year contract beginning in 2011.

ADJOURN
MOTION by Merithew, second by Spaccarotella, to adjourn.

VOTING:         Aye:   Spaccarotella, Henrich, O’Gara, Merithew, Mooney, Sklenar

MOTION carried:        6-0 (1 absent)

The meeting adjourned at approximately 4:05 P.M.


Toni Hansen                                                        6-17-10
Recording Secretary                                                Date

APPROVED 5-0 (2 absent)

James Sklenar                                                      6-17-10
Chairperson                                                        Date

George Merithew                                                    6-17-10
Secretary                                                          Date