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Board Meeting Minutes
June 29, 2010
DAS General Services Building
1225 Ferry St SE, Ste B, Salem
Public Meeting Minutes
Tues., June 29, 2010; 8:00 – 10:30 a.m.
APPROVED – 07/20/2010
NOTE:  Time codes for the video stream (xx:xx:xx) are provided at the beginning of each section.Please refer to the recorded video stream of this meeting for additional details. Topics may be heard out of agenda order.
Watch the recorded video stream of this meeting 
Board Members Present
Rich Peppers, Chair
Peter Callero
Rocky King
Rep. Tina Kotek (via telephone)
Diane Lovell
Paul McKenna
Fariborz Pakseresht
Jeanene Smith
Barney Speight
PEBB Staff Present
Bobbie Barott
Wendy Edwards
Chelsea Hollingsworth
Joan Kapowich
Kathy Loretz
Ingrid Norberg
Chérie Taylor
Guests Present
Don Antonucci, Regence
Shelia Jameson, Providence
Megan Myrick, Willamette Dental

, Kaiser

Diane McMillan-Skutack, BHS
Marilyn Teleck, PEBB member/retiree
Dennis Thompson, Statesman Journal
Dana Tierney, Regence
Deborah Tremblay, OJD
Don Wiggins, The Standard
Denise Yunker, OUS
Consultants Present
Mikel Gray, Mercer (via telephone)
Welcome and Call to Order
Overview of Meeting and Updates
Stabilization Fund, RBC & Plan Design
Public Comment
[VIDEO STREAM: 00:00:00/01:18:13)]
Welcome and Call to Order (info)
Chair Peppers opened the meeting.
Overview of Meeting and Updates
Administrator Joan Kapowich reviewed the agenda, updating the Board on retirees covered by PERS’ insurance program and other items of interest.
Stabilization Fund, RBC & Plan Design (info/actionBdattach.1)
Wendy Edwards, Director of Operations and Mikel Gray, Mercer, discussed stabilization fund and risk-based capital (RBC) reserve levels. Various plan design options were reviewed, including savings and impact to members.
Action: Barney Speight moved to:
  1. discontinue PEBB’s $20,000 life insurance benefit for employees (effective Dec. 31, 2010);
  2. accept DAS/SEIU’s joint petition for PEBB stabilization reserve funds to bridge 2010’s five percent to 10 percent General Fund premium gap, and;
  3. transfer remaining balance of demutualization funds into PEBB’s stabilization reserve after above-listed financial transactions complete.
Diane Lovell seconded Mr. Speight’s motion.
The motion, in a roll-called vote, carried, with six Board members voting for and one member voting against. Chair Peppers abstained from the vote.
Following the roll-call vote, Peter Callero moved to accept the joint petition of DAS (Scott Harra) and SEIU (Leslie Frane) to use PEBB stabilization reserve funds to cover the General Fund premium deficit, estimated by PEBB consultants to be about $14,760,413, by taking the funds from The Standard demutualization fund. Barney Speight seconded the motion, which carried by a roll-called vote of 4-3.
Barney Speight moved to propose a ‘sense of the Board’ for 2012, recognizing that the cost of insured and self-insured medical and dental benefits in Plan Year 2012 will be the sum of the following;
  1. projected cost increases for benefits for 2012 over those incurred in 2011;
  2. an estimated $14.7M resulting in the acceptance by the Board of the joint petition, and;
  3. an amount as determined by consultants to the Board to keep the PEBB stabilization reserves at the mid-point range.
Diane Lovell seconded the motion.
After discussion, Barney Speight moved to amend his standing motion: Delete point 3, leaving the costs to be the sum of 1 and 2. In addition, the Board will keep the reserves at the low range and will make every effort to continuously grow the reserve to the mid-point.
Diane Lovell seconded the amended motion.
After further discussion, Diane Lovell called the question, the calling of which passed unanimously. Chair Peppers called for members to affirm or deny amending Mr. Speight’s original motion which, in a roll-called vote, was carried, four for and three against.
Chair Peppers then asked for a roll-called vote on Mr. Speight’s amended motion, which was also carried by the Board, four voting for and three voting against.
Written public comment was submitted by Marilyn Teleck, PEBB retiree, and shared with the Board electronically on June 29, 2010.