MINUTES
OF THE
BOARD OF FIRE AND POLICE PENSION COMMISSIONERS
MEETING OF AUGUST 15, 2002
The Board of Fire and Police Pension Commissioners of the City of Los Angeles met in Room
800,360 East Second Street, on Thursday, August 15,2002.
COMMISSIONERS PRESENT:
Gay L. Harwin, President
George V. Aliano
Thomas A. Dawson
Sam Diannitto
Sim Farar
Peggy Moore
Louis F. Moret
COMMISSIONER ABSENT:
Mike Carter
William H. Jackson
DEP ARTMENT OF FIRE AND
POLICE PENSIONS:
CITY ATTORNEY'S
OFFICE:
Gary Mattingly, General Manager
D. Edward Griffiths, Asst. General Manager
Michael Perez, Asst. General Manager
Rhonda Peterson, Asst. General Manager
Tom Lopez, ChiefInvestment Officer
Donna Weisz Jones, Assistant City Attorney
President Harwin called the regular meeting to order at 9:08 a.m.
All of the above-listed Commissioners were present at the start of the meeting.
NEW BUSINESS
President Harwin asked if any Board member made any expenditure to influence state legislative
or administrative action to which their reply was negative.
COMMUNICATIONS
TO THE BOARD
a. Miscellaneous correspondence from money managers, consultants, etc., received and filed.
Minutes of the Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 2
b. Status report of Board assignments to staff.
Received and filed.
c. Board committee assignments.
Received and filed.
COMMITTEE REPORTS
Benefits Committee
Chair Dawson said this Committee did not meet.
Equities Committee
Chair Moret said this Committee did not meet.
Fixed Income and International Investment Committee
Chair Diannitto said this Committee did not meet.
High Yield and Alternative Investment Committee
Chair Aliano said this Committee did not meet.
Independence and Administrative Committee
Chair Diannitto said this Committee met on August 8th and gave staff further direction on the two
agenda items considered at this meeting.
Real Estate Committee
This Committee did not meet.
Strategic Planning Committee
This Committee did not meet.
Minutes of the Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 3
BOARD APPROVAL OF FLUCTUATING
POLICE MEMBER SALARIES
PENSION INCREASES
BASED ON ACTIVE
RESOLUTION NO. 03014
Commissioner Diannitto moved that the Board approve the adjustments to qualified fluctuating
pensioners as stated below:
Fluctuating pensions are based on salaries of active members. Qualified fluctuating pensioners,
surviving spouses and dependent children receive one-half the salary of active employees of the
same rank as the member at retirement.
Active Police members under the recently approved Memorandum of Understanding covering Police
Command Officers received a salary increase of 4% effective July 1, 2000, a 4% increase effective
July 1,2001, and a 5% increase effective July 1, 2002.
Based on the increases to salaries to these active members, qualified fluctuating pensioners should
have their pensions adjusted to reflect the increases effective July 1, 2000, July 1, 2001 and July 1,
2002. There are six pensioners affected by these increases.
Which motion was seconded by Commissioner Dawson and approved by the following vote: ayes,
Commissioners Aliano, Dawson, Diannitto, Farar, Moore, Moret and President Harwin - 7; nays,
none.
BOARD APPROVAL OF INVESTMENT IN OCM REAL ESTATE OPPORTUNITIES FUND
III BY OAKTREE CAPITAL MANAGEMENT
RESOLUTION NO. 03015
Commissioner Dawson moved that the Board approve an investment of $40 million to the OCM
Real Estate Opportunities Fund III, which motion was seconded by Commissioner Aliano and
approved by the following vote: ayes, Commissioners Aliano, Dawson, Diannitto, Farar, Moore,
Moret and President Harwin -7; nays, none.
BOARD ADOPTION OF INTEREST RATE AND CREDITING OF INTEREST TO ACTIVE
MEMBER CONTRIBUTION ACCOUNTS AS OF JUNE 30, 2002
RESOLUTION NO. 03016
Commissioner Diannitto moved that the Board adopt the interest rate of 1.77% and direct the
General Manager to credit interest to the active member contribution accounts as of June 30, 2002,
Minutes of the Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 4
which motion was seconded by Commissioner Aliano and approved by the following vote: ayes,
Commissioners Aliano, Dawson, Diannitto, Farar, Moore, Moret and President Harwin - 7; nays,
none.
President Harwin requested the public to leave the room so the Board could meet in closed session.
CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 REQUESTED
BY THE CITY ATTORNEY'S OFFICE TO DISCUSS INITIATING LITIGATION AGAINST
WORLD COM AND OTHERS REGARDING BOND LOSSES
Deputy City Attorney Michael Wilkinson met with the Board under closed session.
President Harwin invited the public back in to the meeting.
GENERAL MANAGER'S REPORT
There was none.
CONSIDERATION OF FUTURE AGENDA ITEMS
President Harwin announced that the Regularly Scheduled Board meeting of September 5,2002 has
been cancelled.
PUBLIC COMMENTS
There was none.
CONSENT ITEMS
Mr. Mattingly said that there was one correction to the Consent Items:
Item l l g - Donna L. Bangs - Corrected pension amount should be $2,582.78
DISCONTINUED PENSIONS - TIER 1
Henry S. Shively
Joel E. Lard, Jr.
Mildred L. Mixon
Polly C. Nowell
Darlene N. Anderson
Melvina E. Fuller
Fire Service
Police Disability
Fire Widow
Fire Widow
Police Widow
Police Widow
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
09-01-60
02-01-64
01-07-92
01-01-79
06-01-75
11-23-88
Died:
Died:
Died:
Died:
Died:
Died:
06-30-02
06-26-02
01-23-02
06-29-02
06-07-02
06-19-02
Minutes ofthe Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 5
Elsie W. Lockliear
Faith G. Mackay
Doris V. Richardson
Police Widow
Police Widow
Police Widow
Retired:
Retired:
Retired:
11-09-89
04-01-62
01-01-67
Died:
Died:
Died:
06-23-02
06-23-02
05-13-02
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
Retired:
07-18-72
06-30-74
09-01-67
09-01-69
06-30-80
04-09-00
12-09-84
07-01-73
06-01-78
07-01-70
08-02-98
07-20-97
02-01-75
07-01-74
08-23-81
06-01-76
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
Died:
07-05-02
06-19-02
06-19-02
06-30-02
06-15-02
06-29-02
07-09-02
04-22-02
05-13-02
04-02-02
07-15-02
05-26-02
06-17-02
05-12-02
07-03-02
07-15-02
DISCONTINUED PENSIONS - TIER 2
Wesley S. Cox
Oliver H. Howard
Robert G. Huffman
John E. Majek
Carl E. Wagner
John P. Anderson
John W. Bangs III
Russell W. Gerst
Carl C. Hegge
GuyL. Hogue
Kristine A. Kalstrom
Raymond M. Lyons
Donald L. Lyon
John J. Musulin
Paul J. Sanino
Raymond W. Smith
Wilkie Y. Tucker
Martin A. Jefferson
Gregory W. Salyers
Adrienne M. Carnes
Florence A. Stinson
Lee R. Wampler
Fire Service
Fire Service
Fire Service
Fire Service
Fire Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Service
Police Disability
Police Disability
Fire Widow
Fire Widow
Police Widow
DISCONTINUANCE OF PENSION
MEMBER - TIER 2
OF FORMER
09-01-85
02-24-94
10-31-91
05-31-84
04-26-95
07-26-88
04-02-02
05-30-02
07-13-02
04-15-02
07-18-02
06-27-02
SPOUSE AlC DEATH OF RETIRED
Florence E. Gordon (Former Spouse of Kenneth B. Gordon) Effective: 06-17-02
Geraldine A. Sander (Former Spouse of Perry A. Nice) Effective: 06-17-02
Minutes of the Board of Pire and Police Pension Commissioners
August 15, 2002 Meeting
Page 6
SERVICE PENSIONS - TIER 2
Police
Lieutenant II
Steven B. Knieriem
Appt'd:
Eff:
10-06-80
07-05-02
21 Years
NPB:
272 Days
$9,034.08
43.4630%
$3,926.48
Police Officer II + 2
Richard A. Loeffler
Appt'd:
Eff:
04-16-74
07-05-02
28 Years
NPB:
46 Days
$6,984.36
64.3369%
$4,493.52
Sergeant II
Martin d. Coon
Appt'd:
Eff:
10-27-75
07-06-02
26 Years
NPB:
202 Days
$7,683.84
59.6110%
$4,580.41
Police Officer II + 6
Charles D. Perriguey, Jr.
Appt'd:
Eff:
01-24-72
07-14-02
30 Years
NPB:
171 Days
$8,566.02
70.0000%
$5,996.21
Detective I
Michael G. Crosby
Appt'd:
Eff:
10-27-75
07-17-02
26 Years
NPB:
262 Days
$6,892.14
60.1288%
$4,144.16
Appt'd:
Eff:
02-05-72
08-01-02
30 Years
PAS:
177 Days
$8,190.83
82.4220%
$6,751.05
Lieutenant II
Ted A. Steiner
Appt'd:
Eff:
04-17-72
07-05-02
30 Years
PAS:
79 Days
$8,604.30
81.6081 %
$7,021.81
Commander
Thomas W. Lorenzen
Appt'd:
Eff:
02-23-71
07-11-02
31 Years
PAS:
138 Days
$12,454.92
85.0437%
$10,592.12
Detective III
Stephen W. Bernard
Appt'd:
Eff:
10-02-72
07-14-02
29 Years
FAS:
285 Days
$7,725.60
80.1232%
$6,190.00
Sergeant II + LB
Richard L. Greenwood
Appt'd:
Eff:
02-23-71
07-14-02
31 Years
PAS:
127 Days
$8,604.88
85.0437%
$7,317.91
SERVICE PENSIONS - TIER 5
Fire
Captain I
Edward D. Carlson
Police
Minutes of the Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 7
SERVICE PENSION CORRECTION - TIER 5
Battalion Chief
Thomas A. Wilson
FINAL AVERAGE SALARY:
From: $8,885.59
To: $8,936.59
PENSION AMOUNT
From: $8,087.00
To:
$8,133.20
Final Average Salary and Pension Amount corrected due to verification of education bonus
received after original Board Date. Pension effective date remains February 1,2002.
ELIGIBLE SURVIVING SPOUSE'S PENSION - TIER 2
Member's
Class
Normal
Pen. Base
Rate
%
Effective
Date
Monthly
Amount
Yvonne R. Cox
(Wesley S. Cox)
Fire Service
$1,405.93
55.0000%
Member's CIL
07-06-02
$ 773.26
2,632.97
$3,406.23
Berta 1. Wagner
(Carl E. Wagner)
Fire Service
$2,129.76
55.0000%
Member's CIL
06-16-02
$1,171.37
1,837.90
$3,009.27
Beverly Anderson
(John P. Anderson)
Police
Service
$5,707.20
55.0000%
Member's CIL
06-30-02
$3,138.96
207.30
$3,346.26
Donna L. Bangs
(John W. Bangs III)
Police
Service
$4,466.58
40.2411%
Member's CIL
07-10-02
$1,797.40
785.38
$2,582.98
Ruth J. Sanino
(Paul J. Sanino)
Police
Service
$2,716.14
55.0000%
Member's CIL
07-04-02
$1,493.88
1,547.63
$3,041.51
Marjorie M. Smith
(Raymond W. Smith)
Police
Service
$2,061.90
55.0000%
Member's CIL
07-16-02
$1,134.05
2,820.19
$3,954.24
Minutes of the Board of Fire and Police Pension Commissioners
August 15, 2002 Meeting
Page 8
PARTIAL PAYMENT OF PENSION - TIER 2
In accordance with the City Attorney's advice, a designated proportion of the community
property interest ofthe pension payable to Richard A. Loeffler, Police Service Pensioner, is to
be paid to his former spouse Sharon M. Tegeler-Fedor effective July 5,2002. Mrs. TegelerFedor will receive cost of living increases.
DISCONTINUE GUARDIANSHIP - TIER 3
Discontinue the pension payable to Karina G. Stapleton as the Guardian of Crystal A. Deaton,
minor child of deceased Police Sergeant II Israel S. Medina, effective August 4,2002 due to the
attainment of age 18.
Pension benefits of $346.80 will be paid to Crystal A. Deaton as she remains a full-time student.
FINDINGS OF FACT - TIER 3
a. Denise Ward
A motion to approve the Consent Items with the one correction noted was made by Commissioner
Diannitto, seconded by Commissioner Dawson and approved by the following vote; ayes,
Commissioners Aliano, Dawson, Diannitto, Farar, Moore, Moret and President Harwin - 7; nays,
none.
DISABILITY PENSIONS
DISABILITY CLAIM - NEW - TIER 2
Vincent Di Mauro
(P)
Lieutenant II
As recommended by staff and concurred in by the applicant, service connected disability pension
granted in the amount of$5,885.07 or 67.0411 % of$8,778.30 with no scheduled review. Motion
made by Commissioner Moore, seconded by Commissioner Diannitto and adopted by the following
vote: ayes, Commissioners Aliano, Dawson, Diannitto, Farar, Moore, Moret and President Harwin7; nays, none. Lieutenant Leslie Lutz, Medical Liaison, Los Angeles Police Department, testified
regarding Lieutenant Di Mauro. Lieutenant Di Mauro was not present and not represented.
Minutes of the Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 9
Connie E. Gordon
(P)
Detective III
As recommended by staff and concurred in by the applicant, service connected disability pension
granted in the amount of$5,052.26 or 70% of$7,217.52 with acost ofliving adjustment of$323.20
for a monthly total of$5,375.46 with no scheduled review. Motion made by Commissioner Moret,
seconded by Commissioner Dawson and adopted by the following vote: ayes, Commissioners
Aliano, Dawson, Diannitto, Farar, Moore, Moret, and President Harwin -7; nays, none. Detective
Gordon was not present but was represented by his attorney, Thomas 1. Wicke.
Robert G. Swanson
(P)
Lieutenant II
As recommended by staff and concurred in by the applicant, service connected disability pension
granted in the amount of$6,204.49 or 70% of$8,863 .56 with no scheduled review. Motion made by
Commissioner Farar, seconded by Commissioner Diannitto and adopted by the following vote: ayes,
Commissioners Aliano, Dawson, Diannitto, Farar, Moore, Moret, and President Harwin -7; nays,
none. Lieutenant Swanson was not present, but was represented by his attorney, Thomas 1. Wicke.
DISABILITY CLAIM - SURVIVING SPOUSE - TIER 3
Leslie A. Medina
Surviving Spouse of
Israel S. Medina
(P)
Sergeant II (Deceased)
Prior Board Action of May 11, 2000 granting a non-service connected surviving spouse pension at
40% is set aside and a service connected surviving spouse pension is granted in the amount of
$4,870.47 or 75% of$6,493.97, and $1,623.50 in minor child pension benefits for two ofthreeminor
children and a cost of living adjustment of $441.82 for a monthly total of $6,93 5.79. Motion made
by Commissioner Farar, seconded by Commissioner Moore and adopted by the following vote: ayes,
Commissioners Aliano, Diannitto, Farar, Moore, Moret and President Harwin - 6; nayes,
Commissioner - 1. (Original motion to deny and readopt the prior Board Action of May 11, 2000
was made by Commissioner Dawson and failed for a lack of a second) Sergeant Kieth Moreland, Los
Angeles Police Department, Behavioral Science Service Section, testified regarding Sergeant
Medina. Mrs. Medina was present and was represented by her attorney, Thomas 1. Wicke.
DISABILITY CLAIM - REQUEST FOR REHEARING - TIER 5
Shawn P. Fairman
(P)
Police Officer II (Terminated)
Rehearing denied. Prior Board Action of December 6,2001 denying a service connected disability
pension is readopted. Motion made by Commissioner Aliano, seconded by Commissioner Dawson
and adopted by the following vote: ayes, Commissioners Aliano, Dawson, Diannitto, Farar, Moore,
Minutes of the Board of Fire and Police Pension Commissioners
August 15,2002 Meeting
Page 10
Moret, and President Harwin -7; nays, none. Mr. Fairman was present and was represented by his
attorney, Tanya Garza-Sutton.
DISABILITY CLAIM - NEW - TIER 4
William Merchant
(P)
Police Officer II
Service connected disability pension granted in the amount of$2,862.30 or 50% of$5,724.60 with a
cost of living adjustment of $57.96 for a total monthly amount of $2,920.26 with no foreseeable
purpose for review. Motion made by Commissioner Dawson, seconded by Commissioner Aliano
and adopted by the following vote: ayes, Commissioners Aliano, Dawson, Diannitto, Farar, Moore,
Moret, and President Harwin - 7; nays, none. (Original motion to grant a service connected
disability pension at 44 % with no foreseeable purpose for review was withdrawn). Lieutenant Leslie
Lutz, Medical Liaison, Los Angeles Police Department and Sergeant Paul M. Weber, Los Angeles
Police Protective League Director, testified regarding Officer Merchant. Officer Merchant was
present and was represented by his attorney, Thomas L. Hoegh.