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PSERS 2011 Board Meeting Resolutions


2011-01 - Investment Objectives and Guidelines
2011-02 - The Baring Asia Private Equity Fund V, L.P.
2011-03 - CS Strategic Partners V, L.P.
2011-04 - Coller International Partners VI, L.P.
2011-05 - Five-Year Experience Study
2011-06 - Investment Policy Statement, Objectives, and Guidelines
2011-07 - Centerline High Yield CMBS Fund III, LLC
2011-08 - U.S. and Non-U.S. Proxy Voting Policies
2011-09 - Re: Avenue Special Situations Fund VI, L.P.
2011-10 - PSERB Resolution
2011-11 - PSERB Resolution
2011-12 - PSERB Resolution
2011-13 - Re:  Bank of America Corporation
2011-14 - Palmetto Fund, Ltd.
2011-15 - Investment Objectives and Guidelines
2011-16 - Milestone Partners IV, L.P.
2011-17 - Capital International Private Equity Fund VI, L.P.
2011-18 - Orchid Asia V, L.P.
2011-19 - Blackstone Real Estate Partners VII, L.P.
2011-20 - Carlyle Realty Partners VI, L.P.
2011-21 - DRA Growth and Income Fund VII, LLC
2011-22 - HOP Medical Plan Benefits and Rates
2011-23 - HOP Pre-65 Medical Plan Benefits and Rates
2011-24 - Basic Medicare Rx Option Benefits and Rates
2011-25 - Enhanced Medicare Rx Option Benefits and Rates
2011-26 - Actuarial Audit  
2011-27 - Pharmacy Benefits Manager Request for Proposals HOP Basic and Enhanced Medicare Rx Options and Pre-65 Medical Plan Prescription Drug Benefits
2011-28 - Wissahickon School District
2011-29 - Robeco Transtrend Diversified Fund LLC
2011-30 - Brigade Distressed Value Offshore Fund Ltd.
2011-31 - Cerberus Levered Loan Opportunities Fund I, L.P.
2011-32 - The Fifth Cinven Fund, L.P.
2011-33 - Incline Equity Partners III, L.P.
2011-34 - Summit Partners Growth Equity Fund VIII, L.P.
2011-35 - Summit Partners Venture Capital Fund III, L.P.
2011-36 - Segal Claims Audit
2011-37 - Medicare Advantage andPre-65 Managed Care Plans – Premium Rates and Benefits
2011-38 - Amendment to the Policy Manual for Investment Professional Staff
2011-39 - Financial Statements andIndependent Auditor’s Report
2011-40 - 2012-13 Administrative Budget and Directed Commissions Recapture Program Budget
2011-41 - AllianceBernstein LP
2011-42 - Strategic Fixed Income LLC
2011-43 - Investment Objectives and Guidelines
2011-44 - Black River Fixed Income Relative Value Opportunity Fund Ltd.
2011-45 - Capula Special Opportunities Fund
2011-46 - TPG Opportunities Partners II, L.P. and TOP NPL (A), L.P.
2011-47 - Blackrock Emerging Markets Alpha Advantage
2011-48 - Bain Capital Asia Fund II, L.P.
2011-49 - NGP Natural Resources X, L.P.
2011-50 - Actis Global 4, L.P.
2011-51 - Five Arrows Realty Securities VI, L.P.
2011-52 - PIMCO Multi-Sector Strategy Fund Ltd.
2011-53 - Westwood Global Investments, LLC
2011-54 - Senior Housing Partnership Fund IV, L.P. 
2011-55 - Windjammer Senior Equity Fund IV, L.P.
2011-56 - Investment Objectives and Guidelines
2011-57 - Health Options Program Budget
2011-58 - Securities Litigation Policy
2011-59 - Actuarial Valuation

PSERB Resolution 2011-01
Re: Investment Objectives and Guidelines
January 20, 2011    

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 January 4, 2011.  

Addendum

Addendum Title

E

Internally Managed Indexed Equity Portfolios

 

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PSERB Resolution 2011-02
Re:  The Baring Asia Private Equity Fund V, L.P.
January 20, 2011   

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in The Baring Asia Private Equity Fund V, L.P. in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated January 20, 2011.  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.

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PSERB Resolution 2011-03
Re:  CS Strategic Partners V, L.P.
January 20, 2011   

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $150 million plus reasonable normal investment expenses, in CS Strategic Partners V, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated January 20, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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.

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PSERB Resolution 2011-04
Re:  Coller International Partners VI, L.P.
January 20, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Coller International Partners VI, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated January 20, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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.  

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PSERB Resolution 2011-05
Re: Five-Year Experience Study
March 11, 2011


RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) accepts the June 30, 2010 Five-Year Experience Study report prepared by Buck Consultants, adopts the demographic assumptions and option factor changes as more specifically set forth in the attached exhibits and adopts an inflation assumption of 3%, an investment rate of return assumption of 7.5% and a salary growth assumption of 5.5% to be implemented in the June 30, 2011 actuarial valuation.

RESOLVED, FURTHER, that the Board agrees to re-evaluate its investment rate of return and salary growth assumptions after receipt of the results of PSERS June 30, 2011 actuarial valuation, but prior to Board action on the PSERS planned 2012 asset allocation.  

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PSERB Resolution 2011-06
Re:  Investment Policy Statement, Objectives, and Guidelines
MMarch 11, 2011

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 10, 2011.

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PSERB Resolution 2011-07
Re:  Centerline High Yield CMBS Fund III, LLC
March 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the sale of its share of the Centerline High Yield CMBS Fund III, LLC Loan, in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate,, dated March 10, 2011.  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.

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PSERB Resolution 2011-08
Re:  U.S. and Non-U.S. Proxy Voting Policies
March 11, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) adopts the proposed U.S. and Non-U.S. Proxy Voting Policies pursuant to the recommendation of Lenann T. Engler, Senior Investment Analyst, dated February 25, 2011.

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PSERB Resolution 2011-09
Re:  Avenue Special Situations Fund VI, L.P.
April 29, 2011                        

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $75 million plus reasonable normal investment expenses, in Avenue Special Situations Fund VI, L.P. in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated April 28, 2011.  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.

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PSERB Resolution 2011-10 
Re: Mariner Investment Group
April 29, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) hires Mariner Investment Group, LLC to manage a short duration non-agency 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 Mark E. Heppenstall, Managing Director of Fixed Income, and Wilshire Associates Incorporated, both dated April 4, 2011.  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.   

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PSERB Resolution 2011-11
Re: Capula Tail Risk Fund Limited
April 29, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests in the apula Tail Risk Fund Limited, Class C shares, 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 Aksia, LLC,, both dated April 11, 2011.  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.    

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PSERB Resolution 2011-12
Re: Investment Policy Statement, Objectives and Guidelines
April 29, 2011  
RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) adopts the Investment Policy Statement, Objectives, and Guidelines, as amended, and Addendums listed below pursuant to the recommendation of James H. Grossman, Jr., Managing Director of External Public Markets, Risk, and Compliance, dated April 14, 2011.     Addendum Addendum Title H2  Internally Managed Enhanced Commodity Index Portfolio Y2   Short Duration Non-Agency RMBS Portfolios   

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PSERS Resolution 2011-13
Re:  Bank of America Corporation
April 29, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (“the Board”) hereby ratifies:  (1)   The action of the Corporate Action Agency Committee, authorizing the Executive Director, acting on behalf of the Public School Employees’’ Retirement System (“PSERS”), to seek to serve as co-lead plaintiff together with Forsta AP-Fonden (“AP1”), in the various class actions commenced in the United States District Court for the Southern District of New York against Bank of America Corporation (“BAC”) and other named defendants, relating to the publicly traded securities issued by BAC or its affiliates, 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; and  (2)   The motion for consolidation, appointment as lead plaintiff and approval of lead plaintiff’s choice of lead counsel, Barrack, Rodos & Bacine, filed on behalf of PSERS with respect to such class actions on April 4, 2011.

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PSERB Resolution 2011-14
Re:  Palmetto Fund, Ltd.
June 10, 2011  

RESOLVED, that pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, dated May 20, 2011, and Aksia, LLC, dated May 24, 2011, the Public School Employees’ Retirement Board (the “Board”) invests in the Palmetto Fund, Ltd., Class G shares, in an amount within the target ranges established in Exhibit D of the Investment Policy Statement, Objectives and Guidelines as amended from time to time (the current version of which can be found here).  

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.  

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PSERB Resolution 2011-15
Re:  Investment Objectives and Guidelines
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) adopts the proposed changes to the Investment Policy Statement, Objectives, and Guidelines (specifically the Insurance guidelines and Exhibits B and C) and 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, 2011.  

Addendum Addendum Title
I   U.S. Core Plus Fixed Income Portfolios
  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
 
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PSERB Resolution 2011-16
Re:  Milestone Partners IV, L.P.
June 10, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $70 million plus reasonable normal investment expenses, in Milestone Partners IV, L.P. in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated June 9, 2011.  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.  

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PSERB Resolution 2011-17
Re:  Capital International Private Equity Fund VI, L.P.
June 10, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Capital International Private Equity Fund VI, L.P. in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated June 9, 2011.  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.

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PSERB Resolution 2011-18
Re:  Orchid Asia V, L.P.
June 10, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $50 million plus reasonable normal investment expenses, in Orchid Asia V, L.P. in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated June 9, 2011.  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.

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PSERB Resolution 2011-19
Re:  Blackstone Real Estate Partners VII, L.P.
June 10, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $300 million plus reasonable normal investment expenses, in Blackstone Real Estate Partners VII, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated June 9, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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.

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PSERB Resolution 2011-20
Re:  Carlyle Realty Partners VI, L.P.
June 10, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $200 million plus reasonable normal investment expenses, in Carlyle Realty Partners VI, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated June 9, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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.

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PSERB Resolution 2011-21
Re:  DRA Growth and Income Fund VII, LLC
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in DRA Growth and Income Fund VII, LLC in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated June 9, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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.

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PSERB Resolution 2011-22
Re: HOP Medical Plan Benefits and Rates Effective January 1, 2012
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the benefit modifications to the HOP Medical Plan effective January 1, 2012:

In conjunction with Medicare and the
 HOP Medical Plan, the Member pays

HOP Medical Plan

  Emergency Room

$25 (Waived if admitted)

  Imaging (MRI and CT Scans)

$25

  Durable Medical Equipment

10% up to $100

  Skilled Nursing Facility Care

$0 up to 100 days 


And Further RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the premium rates of the HOP Medical Plan effective January 1, 2012:  

HOP Medical Plan: w/ Benefit and Rating Changes

2012

North and Central Region Rate

$164

Southwest Region Rate

$195

Southeast Region Rate

$199
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PSERB Resolution 2011-23
Re: HOP Pre-65 Medical Plan Benefits and Rates Effective January 1, 2012
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the benefit modifications to the HOP Pre-65 Medical Plan effective January 1, 2012:

Benefit Category

Current Threshold

Proposed Threshold

Annual Deductible

       $ 1,500

        $ 1,500

Annual Out of Pocket Maximum

          5,000

           5,500

Annual Maximum Benefit

      200,000

       250,000

And Further RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the premium rates of the HOP Pre-65 Medical Plan effective January 1, 2012:


HOP Pre-65 Medical Plan: w/ Benefit Changes

2012

Pre-65 Medical Plan

$ 650

Pre-65 Medical Plan w/ Prescription Drugs

750
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PSERB Resolution 2011-24
Re: Basic Medicare Rx Option Benefits and Rates Effective January 1, 2012
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the following benefit modifications to the Basic Medicare Rx Option effective January 1, 2012:

The Member Pays:

2011 Basic
Medicare Rx Option

Proposed Basic
Medicare Rx Option for 2012

Initial Coverage (up to $2,840 for 2011 and $2,930 for 2012)

Generic Rx   (30/90 day)

$7/$21

$7/$21

Preferred Brand Rx

30% ($75 max for 90-day supply)

30% ($50 max for up to 33-day supply; $100 max for 34- to 90-day supply)

Non-Preferred Brand Rx

N/A

40% with no max

Coverage Gap

Generic Rx

93%

86%

And Further RESOLVED, that the Public School Employees’ Retirement Board (the “Board) approves the following premium rates of the Basic Medicare Rx Option effective January 1, 2012:

Basic Medicare Rx Option: w/Benefit Changes

2012

Single

$ 27

Two Person

$ 54

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PSERB Resolution 2011-25
Re: Enhanced Medicare Rx Option Benefits and Rates Effective January 1, 2012
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the following benefit modifications to the Enhanced Medicare Rx Option effective January 1, 2012:

Member Pays for:

Current Enhanced Option

New Enhanced Option

Initial Coverage (up to $2,840 for 2011 and $2,930 for 2012)

Generic Rx (30/90 day)

$7/21

$7/21

Brand Coinsurance

25% up to a $75 Maximum

25% ($50 max for up to a 33-day supply; $90 max for 34- to 90-day supply)

Non-preferred brand

N/A

25% ($50 max for up to a 33-day supply; $90 max for 34- to 90-day supply)

And Further RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the following premium rates of the Enhanced Medicare Rx Option effective January 1, 2012:

Enhanced Medicare Rx Option: w/Benefit Changes

2012

Single

$  81

Two Person

162
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PSERB Resolution 2011-26
Re:  Actuarial Audit
June 10, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) hereby accepts the report prepared by PricewaterhouseCoopers LLP for the Commonwealth of Pennsylvania, dated August 18, 2010, entitled Analysis of Actuarial Valuation, Projections, Plan Design, and Funding Options:  The Public School Employees’ Retirement System, solely with respect to its findings pertaining to PSERS’

June 30, 2009 valuation, as satisfying the Board’s requirement for an actuarial audit every five years of the accuracy and reasonableness of the methods, procedures and assumptions used by PSERS’ actuary in a designated annual actuarial valuation, i.e. June 30, 2009.

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PSERB Resolution 2011-27
Re: Pharmacy Benefits Manager Request for Proposals HOP Basic and Enhanced Medicare Rx Options and Pre-65 Medical Plan Prescription Drug Benefits
Effective January 1, 2012
                       July 12, 2011                          

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) reject all bids submitted in response to the Pharmacy Benefits Manager Request for Proposals and seek approval from the Department of General Services for an extension of the contract with Prescription Solutions to allow the Board time to issue a new Request For Proposal for a Pharmacy Benefits Manager, in accordance with the recommendation of Mark Schafer, Director of the Health Insurance Office.  The contract extension shall be subject to negotiations of terms and conditions satisfactory to the Director of the Health Insurance Office, the Office of Chief Counsel and the Executive Director, as evidenced either by the appropriate signatures on the implementing contract extension or by a memo to that effect appended to the implementing contract extension.      

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PSERB Resolution 2011-28 

Re:  Wissahickon School District
July 12, 2011  

WHEREAS, Section 8521(e) of the Public School Employees’ Retirement Code (Code), 24 Pa.C.S. §8521(e), provides that the members of the Public School Employees’ Retirement Board (Board), have a fiduciary relationship vis-à-vis the members of the Public School Employees’ Retirement System (System); and  

WHEREAS, to fulfill and execute their statutorily-required fiduciary duties and responsibilities, members of the Board must attend Board and Committee meetings, as well as other Board-related functions, which require them to be necessarily absent from their regular employment; and  

WHEREAS, Section 8501(a) of the Code, 24 Pa.C.S. §8501(a), provides, in pertinent part, that “[t]he board shall be an independent administrative board and shall consist of 15 members: . . .  three to be elected by the active professional members of the system from among their number;” and

WHEREAS, James M. Sando is currently one of the three members of the Board duly elected by the active professional members of the System; and

WHEREAS, James M. Sando is currently an active professional employee of the Wissahickon School District (District); and WHEREAS, the District is seeking to restrict or otherwise interfere with James M. Sando’s ability to be necessarily absent from his employment at the District to fulfill and execute his duties as a member of the Board, notwithstanding the System’s obligation to reimburse the District “for the salary or wages of the member, or for the cost of employing a substitute for such member, while the member is necessarily absent from employment to execute the duties of the board,” as provided in Section 8501(d) of the Code, 24 Pa.C.S. §8501(d), or the System’s willingness to otherwise provide for continuity of instructional staff in the classroom.

NOW THEREFORE BE IT RESOLVED, that Jeffrey B. Clay, Executive Director of PSERS, is hereby authorized to take all necessary action, including the initiation of litigation, on behalf of the System, to prevent the District from restricting or otherwise interfering with the duties and responsibilities of James M. Sando as a member of the Board.  If litigation is necessary, the Chief Counsel is authorized to seek delegation of authority from, or participation by, the Attorney General for said litigation. 

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PSERB Resolution 2011- 29
Re:  Robeco Transtrend Diversified Fund LLC
August 11, 2011  

RESOLVED, that pursuant to the recommendations of Robert E. Little, Portfolio Manager of External Public Markets, Risk & Compliance, dated July 27, 2011, and Aksia, LLC, dated July 25, 2011, the Public School Employees’ Retirement Board (the “Board”) invests in the Robeco Transtrend Diversified Fund LLC, in an initial amount of $200 million, and within the target ranges established in Exhibit D of the Investment Policy Statement, Objectives and Guidelines as amended from time to time (the current version of which can be found at http://www.psers.state.pa.us/invest/guide/index.htm).   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.

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PSERB Resolution 2011- 30
Re:  Brigade Distressed Value Offshore Fund Ltd. 
August 11, 2011  

RESOLVED, that pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, dated July 27, 2011, and Aksia, LLC, dated July 27, 2011, the Public School Employees’ Retirement Board (the “Board”) invests in the Brigade Distressed Value Offshore Fund Ltd., in an initial amount of $100 million, and within the target ranges established in Exhibit D of the Investment Policy Statement, Objectives and Guidelines as amended from time to time (the current version of which can be found at http://www.psers.state.pa.us/invest/guide/index.htm).  

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.

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PSERB Resolution 2011- 31
Re:  Cerberus Levered Loan Opportunities Fund I, L.P.
August 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests $200 million plus reasonable normal investment expenses, in Cerberus Levered Loan Opportunities Fund I, L.P. in accordance with the recommendation of James H. Grossman, Jr, Managing Director of External Public Markets, Risk & Compliance, dated July 27, 2011, and Portfolio Advisors, dated August 2011.  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.  

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PSERB Resolution 2011- 32
Re:  The Fifth Cinven Fund, L.P.
August 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed 100 million Euros plus reasonable normal investment expenses, in The Fifth Cinven Fund, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated August 10, 2011.  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.

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PSERB Resolution 2011- 33
Re:  Incline Equity Partners III, L.P.
August 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $50 million plus reasonable normal investment expenses, in Incline Equity Partners III, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated August 10, 2011.  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.    

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PSERB Resolution 2011- 34
Re:  Summit Partners Growth Equity Fund VIII, L.P.
August 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $100 million plus reasonable normal investment expenses, in Summit Partners Growth Equity Fund VIII, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated August 10, 2011.  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.

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PSERB Resolution 2011- 35
Re:  Summit Partners Venture Capital Fund III, L.P.
August 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount equal to 25 percent of the committed capital, but not to exceed $25 million plus reasonable normal investment expenses, in Summit Partners Venture Capital Fund III, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated August 10, 2011.  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.

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PSERB Resolution 2011- 36
Re:  Segal Claims Audit
August 11, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) accepts the May 19, 2011 Analysis and Evaluation of  Claims Processing and Payment procedures for the Public School Employees’ Retirement System Health Options Program prepared by The Segal Company, for the year ended December 31, 2010.

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PSERB Resolution 2011- 37
Re: Medicare Advantage and Pre-65 Managed Care Plans – Premium Rates and Benefits
Effective January 1, 2012 August 11, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”), in accordance with the recommendation of Mark Schafer, Director, Health Insurance Office, dated August 3, 2011, that the Board accept the proposals from:

    • Aetna,
    • Capital Blue Cross/Keystone Health Plan – Central,
    • Geisinger Health Plan,
    • Highmark, Inc. / Keystone Health Plan West, Inc.,
    • Independence Blue Cross/Keystone Health Plan – East, and
    • University of Pittsburgh Medical Center (UPMC) Health

PSERB Resolution 2011-38
Re:  Amendment to the Policy Manual for Investment Professional Staff
August 11, 2011  

RESOLVED, in accordance with the recommendation of the Personnel Committee of the Public School Employees’ Retirement Board (Board), the Board hereby approves the proposed amendments to the Policy Manual for Investment Professional Staff, effective immediately, as more particularly set forth in Exhibit A attached hereto.    

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PSERB Resolution 2011-39
Re:  Financial Statements and
Independent Auditor’s Report
October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) accepts the June 30, 2011 Financial Statements and approve the accompanying Independent Auditor Report prepared for the Public School Employees’ Retirement System by Clifton Gunderson LLP, for the year ended June 30, 2011.

RESOLVED FURTHER that the Board ratifies all payments that are reflected in the June 30, 2011 Financial Statements.


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PSERB Resolution 2011-40
Re:  2012-13 Administrative Budget and 
Directed Commissions Recapture Program Budget
October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) approves the 2012-13 Administrative Budget, not to exceed $44,490,000 and the  2012-13 Directed Commissions Recapture Program Budget, $2,000,000, for the Public School Employees’ Retirement System, as more particularly set forth in the attached summaries.

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PSERB Resolution 2011-41
Re:  AllianceBernstein LP
October 7, 2011

RESOLVED, pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, and Wilshire Associates, both dated September 21, 2011, that the Public School Employees’ Retirement Board (the “Board”) (i) the Board retains AllianceBernstein LP to manage an initial amount of $300 million in their Global Developed ex-U.S. Fixed Income strategy and (ii) that the Investment Office shall have the discretion to invest additional sums within the target ranges approved by the Board in Exhibit D of the Investment Policy Statement, Objectives and Guidelines, as amended from time to time (the current version of which can be found here), provided that any investment of an additional sum by the Investment Office shall be reported to the Board in a timely manner.

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.


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PSERB Resolution 2011-42
Re:  Strategic Fixed Income LLC
October 7, 2011

RESOLVED, pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, and Wilshire Associates, both dated September 21, 2011, that the Public School Employees’ Retirement Board (the “Board”) (i) the Board retain Strategic Fixed Income LLC to manage an initial amount of $300 million in their Non-U.S. Developed Markets Fixed Income strategy and (ii) that the Investment Office shall have the discretion to invest additional sums within the target ranges approved by the Board in Exhibit D of the Investment Policy Statement, Objectives and Guidelines, as amended from time to time (the current version of which can be found here), provided that any investment of an additional sum by the Investment Office shall be reported to the Board in a timely manner.


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.


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PSERB Resolution 2011-43
Re:  Investment Objectives and Guidelines
October 7, 2011


RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) adopts the proposed changes to Exhibits B and C of the Investment Policy Statement, Objectives, and Guidelines and 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 September 22, 2011.


Addendum Addendum Title

   I                  U.S. Core Plus Fixed Income Portfolios

   Q                   Non-U.S. Developed Markets Fixed Income Portfolios

   Q1                 Emerging Markets Fixed Income Portfolios

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PSERB Resolution 2011-44
Re:   Black River Fixed Income Relative Value Opportunity Fund Ltd.
October 7, 2011

RESOLVED, that pursuant to the recommendations of Robert E. Little, Portfolio Manager of External Public Markets, Risk & Compliance, dated September 22, 2011, and Aksia, LLC, dated September 20, 2011, the Public School Employees’ Retirement Board (the “Board”) (i) invests an initial amount of $250 million in the Black River Fixed Income Relative Value Opportunity Fund Ltd., and (ii) that the Investment Office shall have the discretion to invest additional sums within the target ranges approved by the Board in Exhibit D of the Investment Policy Statement, Objectives and Guidelines, as amended from time to time (the current version of which can be found at www.psers.state.pa.us/invest/guide/index.htm), provided that any investment of an additional sum by the Investment Office shall be reported to the Board in a timely manner.

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.

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PSERB Resolution 2011-45
Re:   Capula Special Opportunities Fund
October 7, 2011

RESOLVED, pursuant to the recommendations of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, and Aksia, LLC, both dated September 22, 2011, that the Public School Employees’ Retirement Board (the “Board”) hereby recommends that (i) invests an initial amount of up to $250 million in the Capula Special Opportunities Fund, Class A shares, provided that all due diligence is completed and is satisfactory to the Investment Office, Office of Chief Counsel, Executive Office and Aksia, and (ii) that the Investment Office shall have the discretion to invest additional sums within the target ranges approved by the Board in Exhibit D of the Investment Policy Statement, Objectives and Guidelines, as amended from time to time (the current version of which can be found at www.psers.state.pa.us/invest/guide/index.htm), provided that any investment of an additional sum by the Investment Office shall be reported to the Board in a timely manner.

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.

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PSERB Resolution 2011-46
Re:   TPG Opportunities Partners II, L.P. and
TOP NPL (A), L.P.
October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests $100 million plus reasonable normal investment expenses, in TPG Opportunities Partners II, L.P. in accordance with the recommendation of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, dated September 22, 2011, and Portfolio Advisors, dated September 16, 2011.   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.

FURTHER RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests $100 million plus reasonable normal investment expenses, in TOP NPL (A), L.P. in accordance with the recommendation of James H. Grossman, Jr., Managing Director of External Public Markets, Risk & Compliance, dated September 22, 2011.   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.

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PSERB Resolution 2011- 47
Re:  Blackrock Emerging Markets Alpha Advantage
October 7, 2011

 

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) authorizes investment in the Blackrock Emerging Markets Alpha Advantage Fund up to the emerging markets index weight in the internally-managed PSERS All Country World ex-US Index portfolio in accordance with the recommendation of Susan E. Oh , Portfolio Manager of Non-US Equities, dated September 23, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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.

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  PSERB Resolution 2011-48
   Re:   Bain Capital Asia Fund II, L.P.
  October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount not to exceed $100 million plus reasonable normal investment expenses, in Bain Capital Asia Fund II, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated October 6, 2011.   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.

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   PSERB Resolution 2011-49
   Re:   NGP Natural Resources X, L.P.
   October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount not to exceed $100 million plus reasonable normal investment expenses, in NGP Natural Resources X, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated October 6, 2011.   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.

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   PSERB Resolution 2011-50
    Re:   Actis Global 4, L.P.
   October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount not to exceed $100 million plus reasonable normal investment expenses, in Actis Global 4, L.P., in accordance with the recommendation of Darren C. Foreman, Portfolio Manager, Private Markets, dated October 6, 2011.   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.

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   PSERB Resolution 2011-51
    Re:   Five Arrows Realty Securities VI, L.P.
   October 7, 2011

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount not to exceed $100 million plus reasonable normal investment expenses, in Five Arrows Realty Securities VI, L.P., in accordance with the recommendation of Laurann H. Stepp, Portfolio Manager, Real Estate, dated October 6, 2011.   The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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 2011-52
Re:  PIMCO Multi-Sector Strategy Fund Ltd.
December 9, 2011  

RESOLVED, pursuant to the recommendations of Joseph W. Sheva, Senior Investment Professional – External Public Markets, Risk and Compliance and Wilshire Associates, both dated November 18, 2011, that the Public School Employees’ Retirement Board (the “Board”) hereby (i) retains Pacific Investment Management Company LLC to manage an initial amount of $1.0 billion in the PIMCO Multi-Sector Strategy Fund Ltd. and (ii) gives the Investment Office the discretion to invest additional sums within the target ranges approved by the Board in Exhibit D of the Investment Policy Statement, Objectives and Guidelines, as amended from time to time (the current version of which can be found at http://www.psers.state.pa.us/invest/guide/index.htm), provided that any investment of an additional sum by the Investment Office shall be reported to the Board in a timely manner.   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 2011-53
Re:  Westwood Global Investments, LLC
December 9, 2011  

RESOLVED, that pursuant to the recommendations of Luke M. Jacobs, Senior Investment Analyst, dated December 8, 2011, and Wilshire Associates, dated November 15, 2011, the Public School Employees’ Retirement Board (the “Board”) graduates Westwood Global Investments, LLC from the Public Market Emerging Investment Manager Program to the Main Fund.

PSERB Resolution 2011-54
Re:  Senior Housing Partnership Fund IV, L.P. 
December 9, 2011    

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount not to exceed $100 million plus reasonable normal investment expenses, in Senior Housing Partnership Fund IV, L.P., in accordance with the recommendation of Laurann H. Stepp, Portfolio Manager, Real Estate, dated December 8, 2011.  The final terms and conditions of the investment must be satisfactory to the Investment Office, the Office of Chief Counsel, and the 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 2011-55
Re:  Windjammer Senior Equity Fund IV, L.P.
December 9, 2011    

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) invests an amount not to exceed $100 million plus reasonable normal investment expenses, in Windjammer Senior Equity Fund IV, L.P., in accordance with the recommendation of Charles J. Spiller, Managing Director, Private Markets and Real Estate, dated December 8, 2011.  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 2011-56
Re:  Investment Objectives and Guidelines
December 9, 2011     

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) adopts the proposed changes to the Investment Policy Statement, Objectives, and Guidelines (specifically Exhibits C and D) and the proposed Investment Objectives and Guidelines Addenda listed below for the Public School Employees’ Retirement System pursuant to the recommendation of Joseph W. Sheva, Senior Investment Professional - External Public Markets, Risk & Compliance, dated November 18, 2011.



A U.S. Style-Oriented Large Cap Equities
B Enhanced U.S. Master Limited Partnership Index Portfolios
C U.S. Style-Oriented Small Cap Equities
C1 U.S. Micro Cap Equities
E Internally Managed Indexed Equity Portfolios
E1 Internally Managed Alpha Generation Program
E2 Equity Rebalancing Program
F {Remove}
H Full Discretion Commodity Program
H1 Enhanced Commodity Index Program
J Fixed Income Rebalancing Program
M Non-U.S. Equities  
N Non-U.S. Small Cap Equities
O Emerging Markets Equities
O1 Emerging Markets Small Cap Equities
P Active Currency Hedging Overlay Program
P1 Active Currency Program

PSERB Resolution 2011-57
Re: Health Options Program Budget
December 9, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “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 2012 in the aggregate amount of $253,039,000, as presented by Mark F. Schafer at the December 8, 2011 Health Care Committee meeting.

PSERB Resolution 2011-58 
Re: Securities Litigation Policy 
December 9, 2011    

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”) hereby adopts the proposed changes to the Board’s Securities Litigation Policy, in accordance with the recommendation of Gerald Gornish, Chief Counsel, dated November 21,

PSERB Resolution 2011-59
Re:  Actuarial Valuation 
December 9, 2011  

RESOLVED, that the Public School Employees’ Retirement Board (the “Board”), hereby accepts the June 30, 2011 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 12.36% for Fiscal Year July 1, 2012 through June 30, 2013.