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>> ROB FECKNER: >> The first order of business will be to call to
order and please call the role. >> Rob Feckner?
>> ROB FECKNER: Good morning. >> George Diehr?
>> Here. >> Terry McGuire for John Chiang? Dan Dunmoyer?
>> DAN: Here. >> Henry Jones?
>> HENRY JONES: Here. >> Ron Lind?
>> RON: Here. >> Priya Mathur?
>> PRIYA MATHUR: Here. >> Bill Slaton?
>> BILL: Here. >> The next will be the pledge of allegiance.
I ask Mr. Moyer to please lead us. Please rise.
>> Ready. Begin. >> (pledge of the legions)
>> Well, thank you. The next order of business will know the president's report. So we begin
and let me say good morning and welcome to everyone. I want to begin by diverting my
prepared remarks a little bit so I can comment on the news which was announced just this
week. Most of you probably have heard that federal indictment were announced on Monday
against two former officials of the system. CalPERS has worked with multiple federal and
state law enforcement agencies to assist in their investigations. We are extreme Lee pleased
and grateful that law enforcement authorities are equally committed along with CalPERS leadership
to holding individuals accountable for things that are violating public trust. This is towards
California taxpayers and all of CalPERS staff. This marks two years from the night we released
a review. It was considered over 70 million pages of information collected from more than
400 individuals in an involved more than 140 interviews. From that review, we have instituted
numerous reforms that makes CalPERS a much stronger form. I also want to thank our leaders from our interim
CEO who helped us bridge the gap that we had at that time and especially to our current
CEO and her executive team. For the courage and fortitude to charge calipers and that
is on strong core values and highest moral and ethical standards. This episode will never
be forgotten. It is important that source a sacred trust one that should be held to
the highest levels ever the public employees that serve California. I would like to make
an editorial comment about a couple of articles that you have seen recently. Just say that
although I am not going to discuss personnel matters, I will say that the board did do
its job. And contrary to what you're seen or heard recently, this board took their duties
very seriously and their job was accomplished. So I will leave it at that. At this point,
ladies and gentlemen and members of the board, I will take a moment to recognize a very important
road is this board. Our valued colleague Dan Dunmoyer is leaving us today. This will be
his last official CalPERS meeting. He game a board member in April of 2009 and has shared
insight and leadership across a broad spectrum of issues. He has offered many insights that
he has gained as senior vice period and state legislative and regulatory affairs in the
United States for Farmers Insurance. And in past positions in the government of Arnold
Schwarzenegger. He has encouraged open dialogue and thinking. He has offered important views
on compensation mechanisms and criteria and personnel management. And Dan's expertise
and sound judgment have continued to enhancing in the board practice and financial security
of CalPERS members. I would ask Ms. Strausboll. >> Anne Strausboll: Dan served during challenging
times and always brought thoughtful perspectives and opinions to the discussions and we really
appreciate that. He's been willing to raise these issues with diplomacy and courage and
he always had a personal touch and courage. We wish the very best.
>> ROB FECKNER: At this point, Dan, if you can meet me down at the end of the counter.
So what we have here is a resolution for you pretty much lays out a lot of the comments
I made earlier, but it is signed by all the members of the board and they actually all
got here and signed it. We would like to present this to you and hope you hang it in an area
of distinction that you can remember your time you served with us. Just let it be known
that we certainly appreciate the time that you spent with us. But more importantly, the
dedication you have shown to members of the system, but to our staff as well as your colleagues
on the board. It has been a true pleasure working with and you we certainly hope that
our paths across again. Congratulations. >> Dan Dunmoyer: Thanks so much.
[APPLAUSE] >> ROB FECKNER: Of course, your day would
not be complete with this lovely gift basket filled with lovely ideas. It will be under
your $8, but you will be safe there. I would like to offer you the opportunity to say a
few words. >> Dan Dunmoyer: Thanks, Rob. I appreciate
this honor and privilege. When I started on this board when I was talked into this by
Marjorie Birch. She said we have a great new CEO, great CIO. You may find yourself a little
board because it runs itself there. No real issues. Marjorie and I are good friends, but
I did challenge her on the fact based on that. We have had a lot of challenges, but she was
right about two things about Anne and Joe. Great new staff. It has been a real privilege
to serve. I'm in the private sector and I enjoy the opportunity to give back and to
really participate in this great organization. For me, this is bitter sweet. I was asked
by the governor that he did offer to reappoint me. This is more of the challenges of the
private sector. If you don't believe me and the only insight I will share is this. Try
to watch an ad in America and not see a commercial on insurance. Farmers is almost lost in that
process and so as a result of, that the CEO's process to me is I know you enjoyed doing
that, but you need to enjoy your day job as well. That's a challenge of my process. Just
a few closing words, I want to say thank you to all the board members. You have treated
me very graciously. We've been both friends as well as colleagues in this process. I want
to thank Rob. He's coming in and been very open, very gracious, very giving of his time,
but also been very personally gracious to me on other sensitive matters and I appreciate
that. To the staff, you're a great team. As a former public servant myself, I always take
great pain when people say those bureaucrats in California don't work hard. They have san
easy life. I never worked harder than when I was in public office. My longest shift ever
was work 58 hours straight. I was on the California legislature. I went home, shaved and showered
and came right back. Those that say those in public service have an easy role. Thanks
for your professionalism. I know I am the conservative on the board, but I also have
to define benefits. The parent company I work for is from one of the largest pension funds.
So there's no conflict, Peter. But just very much realized that pensions define benefit
programs when run well serve people extremely well. So I think we are in a great position.
I do want to thank the executive team. We have you have accomplished a lot with us,
the process. I figure since the market is up and some of the bad issues in the past
are behind us are soon to be behind us, this is the best time do this. I do want to leave
on a positive note and say it has been a there you honor to serve with each one of you and
especially, thank you Mr. President. It's been a real honor.
>> ROB FECKNER: Thanks. [APPLAUSE]
Can I ask the board members to come out in front. Those of you that missed breakfast
this morning, we'll take a break. We'll reconvene at 10:45. Please join us out in the out cove
for some cake and coffee. Thank you.