September 2013 Board Book by New Mexico Retiree Healthcare Authority

(PLEASE FIND THE AGENDA/TABLE OF CONTENTS ON PAGE 5.)

REGULAR MEETING OF THE BOARD OF DIRECTORS September 3, 2013 9:30 AM NMRHCA Board Room 2nd Floor Suite 207 4308 Carlisle Blvd. NE Albuquerque, New Mexico

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Board of Directors Regular Meeting

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September 3, 2013

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New Mexico Retiree Health Care Authority Regular Meeting BOARD OF DIRECTORS

ROLL CALL September 3, 2013

Member in Attendance Mr. Santistevan, President Mr. Sullivan, Vice-President Mr. Monta単o, Secretary Mr. Baca Mr. Crandall Ms. Goodwin Mr. Johnson Mr. Linton Ms. Padilla-Jackson Ms. Sucher

Board of Directors Regular Meeting

September 3, 2013

NMRHCA BOARD OF DIRECTORS September 2013 Mr. Julian Baca Designee of PERA Executive Director 33 Plaza La Prensa Santa Fe, NM 87507 PO Box 2123 Santa Fe, NM 87504-2123 julian.baca@state.nm.us

Ms. Olivia Padilla-Jackson NM Municipal League Director, Financial Services City of Rio Rancho opadilla-jackson@ci.rio-rancho.nm.us W: 505-896-8761

Ms. Jan Goodwin, Executive Director Educational Retirement Board PO Box 26129 Santa Fe, NM 87502-0129 jan.goodwin@state.nm.us; (W) 505-827-8030 (F) 505-827-1855

Mr. Wayne Propst Executive Director Public Employees Retirement Association 33 Plaza La Prensa Santa Fe, NM 87507 PO Box 2123 Santa Fe, NM 87504-2123 Wayne.Propst@state.nm.us; W: (505) 476-9301

The Honorable Mr. Wayne Johnson NM Association of Counties Bernalillo County Commissioner One Civic Plaza, NW Albuquerque, NM 87102 Ms. Karen Brown Deputy County Commissioner Bernalillo County, District 5 kbrown@bernco.gov; 505-468-7212 (office) 505-462-9821 (fax) The Honorable Mr. James B Lewis NM State Treasurer 2055 South Pacheco Street Suite 100 & 200 Santa Fe, NM 87505-5135 jamesb.lewis@state.nm.us (W) 505-955-1120 (Fax) 505-955-1195 Mr. Terry Linton Governor’s Appointee 1204 Central Ave. SW Albuquerque, NM 87102 terry@lintonandassociates.com; 505-247-1530 Mr. Joe Montaño, Secretary NM Assoc. of Educational Retirees 5304 Hattiesburg NW Albuquerque, NM 87120 Jmountainman1939@msn.com (H) 897-9518

Board of Directors Regular Meeting

Mr. Alfredo Santistevan, President Designee of NM State Treasurer ice4mac@mac.com 505-228-4487 Ms. Karen Sucher NEA-NM, Classroom Teachers Assoc., & NM Federation of Educational Employees PO BOX 1983 Tijeras, NM 87059 smithsucher3@aol.com Phone: 505-286-8702 Mr. Tom Sullivan, Vice President Superintendents’ Association of NM 800 Kiva Dr. SE Albuquerque, NM 87123 tlsullivan48@gmail.com; 505-330-2600 Mr. Doug Crandall Retired Public Employees of New Mexico PO Box 20607 Albuquerque, NM 87154-0607

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY Board of Directors September 3, 2013 9:30 AM NMRHCA Board Room 2nd Floor Suite 207 4308 Carlisle Blvd. NE Albuquerque, New Mexico AGENDA Call to Order

Mr. Santistevan, Chair

Page

Roll Call to Ascertain Quorum

Ms. Beatty, Recorder

Pledge of Allegiance

Mr. Santistevan, Chair

Public Forum and Introductions

Mr. Santistevan, Chair

Approval of Agenda

Mr. Santistevan, Chair

Approval of Annual Meeting Minutes July 9 &10, 2013

Mr. Santistevan, Chair

*Approval of Medicare Advantage Selection

Mr. Santistevan, Chair

*Approval of FY2015 Budget Appropriation Request

Mr. Santistevan, Chair

Executive Directorâ&#x20AC;&#x2122;s Update

Mr. Tyndall, Executive Director

Operational Update

Mr. Tyndall, Executive Director

Date & Location of the next Regular Board Meeting November , 2013, 9:30 AM, NMRHCA Board Room, 2nd Floor Suite 207, 4308 Carlisle Blvd. NE, Albuquerque, New Mexico. Other Business

Mr. Santistevan, Chair

Adjourn *(The Board has Discretion to take Action on any Agenda Item.)

Board of Directors Regular Meeting

September 3, 2013

MINUTES OF THE NM RETIREE HEALTH CARE AUTHORITY BOARD OF DIRECTORS ANNUAL MEETING: JULY 9 & 10, 2013 CALL TO ORDER The Annual Meeting of the Board of Directors of the New Mexico Retiree Health Care Authority was called to order on July 9, 2013, at 10:00 a.m. in the Sagebrush Inn Conference Center, 1508 Paseo del Pueblo Sur, Taos, New Mexico. ROLL CALL TO ASCERTAIN QUORUM A quorum was present, as follows: Members Present: Mr. Alfredo Santistevan, President, [designee of the Honorable James B. Lewis, NM State Treasurer] Mr. Tom Sullivan, Vice President Mr. Joe Montaño, Secretary Mr. Doug Crandall Ms. Jan Goodwin Mr. Wayne Johnson Ms. Olivia Padilla–Jackson Mr. Wayne Propst [arriving 2:15 p.m.] Ms. Karen Sucher Members Excused: Ms. Elizabeth Jeffreys Mr. Terry Linton Staff Present: Mr. Mr. Ms. Ms. Mr. Ms. Mr. Ms.

Mark Tyndall, Executive Director David Archuleta, Deputy Director Deb Vering, Chief Financial Officer Ramona Martinez, Director, Public Affairs Tomas Rodriguez, IT Director Kimberly Scott, Operations & Customer Service Manager Rudy Bantista, Communications & Board Recording Secretary Judith S. Beatty, Recorder

Others Present: [See sign–in sheet.] PLEDGE OF ALLEGIANCE Mr. Gary Petersen led the pledge. APPROVAL OF AGENDA Ms. Goodwin moved for approval of the agenda, as published. Ms. Sucher seconded the motion, which passed unanimously by voice vote.

Board of Directors Regular Meeting

September 3, 2013

APPROVAL OF REGULAR MEETING MINUTES: JUNE 4, 2013 Mr. Crandall moved approval of the minutes of the June 4, 2013, meeting, as submitted. Ms. Goodwin seconded the motion, which passed unanimously by voice vote. ELECTION OF BOARD OFFICERS Mr. Crandall moved the serving Board of Directors Officers be retained in office. No other nominations were put forward. Nominations were closed. Ms. Goodwin seconded the motion, which passed unanimously by voice vote. CONSENT AGENDA—BOARD TRAVEL • Any Board Member or Designate—IFEBP 59th Annual Employee Benefits Conference, October 19–23, 2013, Las Vegas NV • Any Board Member or Designate—NASACT Annual Conference, August 10–14, 2013, Boston MA Mr. Crandall moved approval of the Consent Agenda, as presented. Ms. Goodwin seconded the motion, which passed unanimously by voice vote. PUBLIC FORUM AND INTRODUCTIONS Audience members introduced themselves to the Board. Ms. Ann Crandall, a Public Employees Retirement Association (PERA) retiree and for 13 years a NMRHCA eligible–retiree program member, requested the Board to add compounded hormones as a covered benefit. She cannot take Premarin, a synthetic hormone, due to her medical condition, and her physician has prescribed compounded hormones to her. Ms. Crandall, as NMRHCA Operations Manager, had received approximately 20 calls each year from Members experiencing the undesirable side effects of synthetic hormones. Ms. Crandall asserted her conviction that compounded hormones are effective biosimilar medications. Ms. Denae Brake and Ms. Amy Daily, Express Scripts, Inc. (ESI) employees, reported the United States Food and Drug Administration (USFDA) classifies compounded medications as investigational drugs, therefore; compounded medications are not proven safe and effective for use in humans. FDA–approved ingredients in compounded hormones may be reimbursed under the benefits plan, but non–approved ingredients are rejected at the point of sale. Ms. Daily reported NMRHCA could cover compounded hormones by overriding the system and reimbursing the pharmacy at a higher rate. The pharmacy has a 25 percent markup on compounding the ingredients, but many of the ingredients are inexpensive. Mr. Tyndall stated that he would research the issue raised by Ms. Crandall and report back at the next board meeting. PROVIDER PRESENTATIONS Express Scripts, Inc. Ms. Brake and Ms. Daily presented: — Plan cost per member per month (pmpm) is $161.69, a 2.3% trend over previous period

Board of Directors Regular Meeting

September 3, 2013

— Generic fill rate increased 4.1% to 81.4%. — Member cost share increased slightly; driven by 1/1/13 copay changes — Generic, home delivery and formulary compliance rates for both the commercial and EGWP (Employer Group Waiver Plan) NMRHCA populations remain well above respective peer groups — The largest trend is in cancer, at 25.6%. — The top 10 indications represent 61.1% of the NMRHCA’s total Plan cost. Diabetes ranks as #1. Chairman Santistevan noted that some groups are reducing the copay for the diabetes medication, the assumption being that this will increase adherence and avoid the secondary problems that develop from not taking the medication. Ms. Daily responded that the NMRHCA’s reduction in the copay did in fact increase adherence. She added that eliminating the copay altogether does not increase adherence unless it is paired with a disease management program, which can move someone from high risk to low risk. Responding to Ms. Padilla–Jackson, Ms. Brake said adherence among NMRHCA members with diabetes is in the high 70% range to low 80% range, which is approximately the goal set by Express Scripts. Ms. Scott commented that she receives at least one call a day from someone saying they can no longer afford their diabetes medication. Ms. Padilla–Jackson asked what the average annual out–of–pocket cost is for insulin, and Mr. Tyndall responded that a 90–day supply is $100. Mr. Tyndall added that the Board has discussed lowering the copay for insulin, something not being recommended right now. He would like to expand the conversation beyond just insulin in the future, because there are other medications that cost a fair amount of money out of pocket, there is no generic alternative, and there are consequences to not taking the drug. He said he would like to develop a comprehensive approach where all of these medications would be tied to disease management programs. Mr. Tyndall stated that the agency works on a case–by–case basis with callers who say they cannot afford their diabetes medication. Mr. Tyndall stated that the NMRHCA’s contract with ESI is just ending, and the PBM contract will go out to bid this fall. He said value–based plan design would definitely be part of that conversation. Responding to Ms. Padilla–Jackson, Mr. Tyndall said the NMRHCA has contracted with third party vendors in the past who administer disease management programs, but it did not work out very well. He said the closer disease management and wellness programs are to the providers of the services (e.g., the doctors), the better. Responding to Mr. Sullivan, Dr. Mike Madalena, Data Warehouse consultant, said 5,532 members out of the 7,242 members with diabetes are Medicare recipients, or about 70%.

Board of Directors Regular Meeting

September 3, 2013

2. Presbyterian Health Plan (PHP) Mr. Tim Rivera with Dr. Norman White, PHP employees, presented. — PHP Services is New Mexico’s largest care provider, with 1,600 PCPs, 7 urgent care clinics, clinics in over 25 specialties (7,000 specialists), and employs 600+ physicians — PHP Customer Service Center consistently answered 80% of all calls in 30 seconds or less (average of 9 seconds in 2013) — Customer and member satisfaction are over 92% Mr. Rivera reported PHP Treatment Cost Calculator, which went live on July 1, is a unique tool that gives NMRHCA members the ability to shop online and identify the lowest cost for a given procedure. He said there are 100 different procedure bundles in the program. Mr. Tyndall commented that he has been asking for this program for a long time, and could not overemphasize the importance of this element of transparency, because there is a large variation on what the costs are for certain frequently–used services. Ms. Padilla–Jackson stressed the importance of incentivizing the membership to utilize this tool, and communicating that effectively in the newsletter. She added that NMRHCA might also make use of this tool in terms of requiring members to select some of the lowest cost services. Mr. Rivera stated that, although Nurse Advice Line services are currently through a third party vendor, PHP plans to in–source the program in the near future with PHP nurses answering the phones. Responding to Mr. Montaño, Mr. Tyndall said there were over 1,200 calls over a one–year period to the BCBSNM and PHP nurse advice lines. [Lunch break 12:10—1:10 p.m.] 3. Blue Cross Blue Shield of New Mexico (BCBSNM) Ms. Lori Bell, BCBSNM employee, presented. — Of NMRHCA’s 48,256 total members, 68% (32,844) are BCBSNM members. — Calls received and answered from NMRHCA members in 2012: 22,023. Average speed of answer, 25 seconds. — Disease management for period 4/1/12—3/31/13 touched 3,389 out of total 10,731 non–Medicare members through mailing or outreach, and 1,467 members were specifically targeted. Of those, 477 verbally consented to participate — NMRHCA’s engagement rate is significantly higher than any other active employer group — 24/7 Nurseline. 746 calls YTD, of which 422 required the attention of a clinician; 70% were redirected to more appropriate level of care

Board of Directors Regular Meeting

September 3, 2013

Ms. Bell stated that the BCBSNM Integrated Provider Finder allows members to get an estimate of treatment costs that are tied to true claims data. There are 200 services on the web at the current time, which will increase to 350 in the near future. In November, BCBSNM will roll out a Member Liability Estimator, which will tell members the cost for specific procedures based on their own insurance, deductible and copayment. Mr. Johnson suggested that NMRHCA could use a notification system, similar to the Nixle notification service for law enforcement and government agencies, to contact the membership. [The agenda was reprioritized.] REVIEW AND DISCUSSION OF NAPRAPATHIC SERVICES Mr. Tyndall stated that, based on estimates made from data received from the health plans administering the state’s Risk Management program, NMRHCA would probably spend about $500,000 if it were to add naprapathic services to the plan. Options for incorporating naprapathic services from a cost neutral perspective include: — Increasing pre–Medicare specialist visit copays from $35 and $45 under the Premier Plus/Premier plans — Reducing the annual benefit maximums for the chiropractic, acupuncture and naprapathic services (combined) to $1,500 — Decreasing the Medicare Supplemental benefit maximum for acupuncture services from $1,500 to $1,000 combined with naprapathic services Responding to Mr. Crandall, Dr. Patrick Nuzzo said there are 17 providers in New Mexico and two schools in the United States, one of them in Santa Fe. Responding to Mr. Johnson, Mr. Tyndall said about 300 members hit the maximum, and there are a lot more between $1,000 and $1,500, which is where the agency would make up the $500,000. Mr. Crandall said he thought the idea of adding naprapathic services should be studied further. Dr. Nuzzo stated that naprapathy was established 108 years ago. While chiropractic involves high velocity adjusting of the bony structure, naprapathy involves the treatment of the soft and connective tissue around the bony structure. He said naprapathic practitioners treat headaches, carpal tunnel syndrome, low back pain and shoulder pain. Ms. Padilla–Jackson suggested introducing naprapathy to the membership at a health fair through a demonstration, at which time interest in this additional service can be gauged. Mr. Johnson suggested establishing a pilot program and then evaluating it after a year. Chairman Santistevan commented that this was a very good idea. REVIEW AND DISCUSSION OF LIFE INSURANCE [Mr. Propst joined the proceedings.] Mr. Tyndall stated that all members who retired prior to January 1, 2012 have been provided a $6,000 basic life policy at no expense to themselves and at a cost to the NMRHCA of $12 a month for 32,000 retirees.

Board of Directors Regular Meeting

September 3, 2013

Mr. Tyndall referred to the NMRHCA Long–Term Solvency Modeling spreadsheet, reflecting an annual expense for Basic Life of $4.4 million. If the Basic Life policy were eliminated from next year forward, NMRHCA would gain about a year of solvency. Mr. Tyndall stated that, based on an average of 750 claims annually, the risk pool will deteriorate, and this is a liability the agency will have to address into the future. Mr. Tyndall recommended discussing this issue during the next procurement cycle, which will come up soon, and that the agency works with whoever the life insurance carrier is moving forward. Ms. Goodwin asked Mr. Tyndall if NMRHCA has explored the idea of having the members pick up part of the cost of a Basic Life policy. Mr. Tyndall responded that this was certainly possible. Another idea would be to make it part of the medical premium. Ms. Goodwin asked Mr. Tyndall how much of the overall accrued liability is attributable to the life insurance benefit, and Mr. Tyndall responded that it was about $120 million. He said the total unfunded liability is $3.6 billion. Ms. Padilla–Jackson said that, while the Basic Life subsidy is not a huge liability relative to total liability, it is not a core mission service and it makes no sense to continue to subsidize it given the plan’s solvency picture. She also questioned how the NMRHCA could reasonably tell the membership that it would continue to subsidize completely a non–core service while reducing their core benefits. Ms. Padilla–Jackson suggested a 5–year lead–time and elimination of Basic Life benefit. Mr. Montaño commented many people depend on the $6,000 payout. While the agency will obviously have to phase this benefit out at some point, it should be as painless as possible. He reminded the Board that many of the older members would have to pay much higher premiums when/if they find a new policy on their own. Responding to Ms. Sucher and Mr. Sullivan, Mr. Tyndall said it would be possible to transfer ownership of the policy to the member, and that the agency could phase out the subsidy over a period of time. He could include this stipulation as part of the upcoming procurement cycle. WELLNESS AND DISEASE MANAGEMENT UPDATE Mr. Tyndall, with Ms. Amy Olcott, R.N. and Ms. Katherine Silva, PHP employees, presented an update of the NMRHCA Wellness and Disease Management Program. Mr. Tyndall reported NMRHCA’s agreement with the health plans has a 3–point strategy for wellness and disease management: 1. Population–based wellness program that provides access to all members • Benefit plan pays for 100% of all services recommended by the Preventative Services Task Force as well as all immunizations recommended by CDC. Utilization of wellness services is better than national benchmarks. In addition to the 100% benefit, NMRHCA provides access to biometric screenings at all enrollment meetings,

Board of Directors Regular Meeting

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access to the flu shot and pneumococcal vaccines, and education information. • Preventative care visits, cholesterol screening rate, colon cancer screening rate and mammogram screening rate are at or above the national benchmark, while cervical cancer screenings are slightly below the benchmark. 2. Enhanced identification of members with diabetes and coronary artery disease for participation in Disease Management programs • Done through medical & prescription claims, results of screening events, New Mexico Nurse Advice Line, physician referrals, family member referrals, and Personal Health Assessment (PHA) • Over 2–year period, only 260 members have completed the PHA. Ms. Goodwin asked if the NMRHCA health plans have considered incentives for people who complete the PHA. Mr. Tyndall responded that the NMRHCA has done it in the past with a $20 or $25 gift certificate, but not many people took the PHA then, either. He said the State at one point offered a credit toward the deductible, but the percentage did not go up appreciably. He said there is a point (around $50) where people can be incented to take the PHA, but he is not convinced this is the best investment. 3. Identify and quantify measurable results of the Disease Management programs. Ms. Olcott discussed the goals and results of the Disease Management programs for diabetes and coronary artery disease. Concluding the report, Mr. Tyndall said he would give the NMRHCA an overall B rating, as the wellness and Disease Management programs are demonstrably producing positive results with the members that take advantage of them. He said improvements can be made in identifying and routing members into the program, and elements of clinical data remain difficult to measure in some provider settings. Ms. Goodwin said she feels it very important that NMRHCA dramatically ramp up its wellness efforts effective in January 2014. Not only do the healthcare providers say it is cost effective, so do the Harvard Business Review and many other big organizations. She said the agency has to do something to bend the cost curve, and there are many ways of doing it. She said it could be a combination of carrots and sticks; for example, the Affordable Care Act rules allow for substantial premium changes if someone is doing a health risk assessment and a 50% premium adjustment if someone is a tobacco user. Ms. Goodwin pointed out that 80% of the cost of healthcare is under the direct control of the individual; it is lifestyle choices, i.e., drinking, smoking, diet, and not exercising. If the NMRHCA could remove half of that from its cost structure, there would be a substantial improvement in long–term sustainability.

Board of Directors Regular Meeting

September 3, 2013

Ms. Sucher noted that APS has been phasing in a personal health assessment program for several years, and this year the premiums will go up for tobacco users. She stated that the program costs no money for the employee. Ms. Padilla–Jackson agreed with Ms. Goodwin and suggested setting a target for self-assessments such as 25% or 50% of the membership. She would support developing performance measures and specific goals going into the next year with respect to member participation. Mr. Tyndall said he would be happy to revisit the idea of a premium differential, noting that the Board voted down a smoker’s premium differential about three years ago. ACTUARIAL PRESENTATIONS 1. Solvency Mr. Petersen and Ms. Stephanie Calandro, Segal consulting actuaries, with Dr. Mike Madalena, Data Warehouse healthcare consultant, presented. [Report on file at NMRHCA offices.] Ms. Calandro reviewed baseline assumptions being used for the long–term solvency projections, with no changes except in following areas, with 2029 as the projected year of insolvency: • Annual payroll growth assumes 2% [was previously 4%] through 6/30/14 and 4% thereafter; • Annual non–Medicare rate increases of 8% in 2014–2016, 3% non– Medicare thereafter, 6% Medicare Supplemental rate increases beginning in CY14 and thereafter; • Consolidation of non–Medicare plans in CY17, annual plan changes thereafter to keep projected claims beneath Cadillac Tax threshold; • Annual index in Cadillac Tax thresholds assumes 3% increase per year. Ms. Calandro explained that, beginning in 2018, an employer or health insurer offering a plan that costs more than $10,200 for an individual and $27,500 for a family (adjusted for inflation) would typically pay a 40% excise tax on the amount exceeding the threshold. The thresholds increase for individuals in high–risk professions and for employers with a disproportionately older population. At the current time, the age range is 55 to 64 but adjustments will be made to be consistent with the national workforce. Ms. Padilla–Jackson wondered if a payroll growth rate of 4% is realistic given the recessionary environment. Mr. Petersen responded that Segal has analyzed the data and calculated that NMRHCA would lose a year of solvency by lowering the assumption from 4% to 3.75%. He said Segal feels the assumptions should mirror those of PERA and ERB over time. Mr. Tyndall stated that ERB’s is 3.75% and PERA’s is 4%. Responding to a request from Ms. Padilla–Jackson, Mr. Petersen agreed to look at Segal’s database to determine if 4% is the average among other clients.

Board of Directors Regular Meeting

September 3, 2013

2. GASB Mr. Tyndall stated that the GASB valuation is currently at $3.6 billion, but unfunded liability goes down to $3.4 billion in 2018 by paying the 40% excise tax. If the Board opts to let the plan stay the same and pay the excise tax, the unfunded liability would go up to $3.8 billion. Mr. Tyndall said that, from both a GASB and solvency scenario, it would be necessary for the Board to state its intent with respect to making plan design changes. [Recess: 4:35 p.m.] CALL TO ORDER The second day of the Annual Meeting of the Board of Directors of the New Mexico Retiree Health Care Authority was called to order on July 10, 2013, at 9:10 a.m. in the Sagebrush Inn Conference Center, 1508 Paseo del Pueblo Sur, Taos, New Mexico. ROLL CALL TO ASCERTAIN QUORUM A quorum was present, as follows: Members Present: Mr. Alfredo Santistevan, President, [designee of the Honorable James B. Lewis, NM State Treasurer] Mr. Tom Sullivan, Vice President Mr. Joe Montaño, Secretary Mr. Julian Baca Mr. Doug Crandall Ms. Jan Goodwin Mr. Wayne Johnson Ms. Olivia Padilla–Jackson Ms. Karen Sucher Members Excused: Ms. Elizabeth Jeffreys Mr. Terry Linton Staff Present: Mr. Mr. Ms. Ms. Mr. Ms. Mr. Ms.

Others Present: [See sign–in sheet.]

Board of Directors Regular Meeting

September 3, 2013

OPEN MEETINGS ACT RESOLUTION Mr. Johnson moved approval of the Open Meetings Resolution. Ms. Padilla–Jackson seconded the motion, which passed unanimously by voice vote. OPERATIONAL UPDATE Customer Service Ms. Scott presented an Operations status report, with the following highlights: For Q2 2013, there were 8,699 incoming calls with a 5.4% abandonment rate and an average delay time of 9 seconds. By contrast, in Q2 2012 there were 6,152 calls with an abandonment rate of 2.7% and an average delay of 8 seconds. There are two vacancies in the Albuquerque office. A Customer Service Representative was promoted to HR manager, and another person left. The positions will be posted this week. Responding to the Chair, Ms. Scott said any member who calls the agency is asked for updated information, including email address. Mr. Rodriguez added that anyone logging into the NMRHCA website is asked to update their personal information, which is replicated to the database. Information Technology Mr. Rodriguez reviewed accomplishments and challenges, as well as a REBIS project update. Responding to Ms. Goodwin, Mr. Rodriguez said he will be asking CAANES to do another security assessment within the next 30 days. Mr. Rodriguez stated that the integration of the Santa Fe phone system into the Albuquerque Call Center system has been a 4–year effort. He said a VOIP (voice over internet protocol) system would take about one day to implement at a cost of about $2,000, but the state does not support VOIP, and requests for waivers from the state have been denied. Ms. Martinez discussed the new website design and e–newsletter format, both of which are much more readable and user–friendly. Mr. Sullivan asked Mr. Tyndall to bring back the Strategic Plan to see what needs updating. Ms. Goodwin commented that this is timely, because the budget submitted to DFA in September must include a strategic plan. Ms. Sucher noted that Mr. Rodriguez has a staff of only 3 people, and recommended that he consider using interns. Mr. Rodriguez responded that this was an excellent idea and he would explore it. Mr. Crandall observed that staffing levels have remained the same for years even though the membership has increased. He said interns are fine, at least for now, but the agency should be expanding staff to meet increased need.

Board of Directors Regular Meeting

September 3, 2013

Mr. Tyndall stated that the FY 2015 appropriation request will include additional positions in Customer Service and IT. FY2013 End–of–year Projections Mr. Archuleta presented preliminary end–of–year projections based on information at June 24. Health Care Benefit Fund • Expenditures are at $229.4 million and revenues are at $271.5 million, creating a surplus of $42 million. Management projects a trust fund contribution of $30 million for FY13. • Estimated claim expenditures through the end of FY13, as compared to the same period in FY12, have increased by approximately $6.9 million, or 3%. Program Support Fund Budget for FY13 is $2.6 million, expenditures are $2.2 million, and revenues are $2.6 million, creating a reserve of $452,000. Management projects a reserve of $268,000 for June 30, 2013, resulting from staff vacancies and closing monitoring expenditures in contractual services and other costs. ATTESTATION OF INTENT WITH REGARD TO EXCISE TAX Mr. Tyndall stated that, beginning in 2018, federal health care reform will require any plans with an actuarial value above a certain level to pay a 40% excise tax on any excesses. The current annual value for a retiree plan is $11,850, but it is uncertain if that figure will be indexed. It is possible, even likely, that NMRHCA may have plans that will be in excess of this figure by 2018. This would increase the current UAAL to $3.8 billion. Mr. Tyndall said that, with the Board’s stated intent that it will adjust plans to avoid the excise tax, the current UAAL would be reduced to $3.4 billion. He requested that the Board adopt the following attestation of intent: “NMRHCA’s Board of Directors hereby states its intent to modify plan designs as necessary to preclude the payment of any excise tax established by 2010’s Patient Protection and Affordable Care Act beginning in 2018.” Ms. Goodwin asked what kinds of plan design changes are contemplated to meet these goals. Mr. Tyndall responded that the Board yesterday discussed eliminating Premier Plus, retaining Premier, and creating a second and more affordable plan under Premier. Right now, the law requires that the actuarial value associated with the Cadillac Tax will go up in accordance with the Consumer Price Indexes program (CPI), which is unknown, but if it is higher than what medical cost inflation is, the Board will have to regularly revisit ways of staying below the excise tax limit. Mr. Sullivan suggested that, to avoid confusion, NMRHCA keep the “Premier Plus” and “Premier” plan names but change the designs.

Board of Directors Regular Meeting

September 3, 2013

Mr. Crandall moved for approval of the Attestation of Intent. Mr. Johnson seconded the motion, which passed unanimously by voice vote. APPROVAL OF CY 2014 PLAN DESIGNS AND MEMBER RATES Mr. Tyndall stated that the NMRHCA’s long–term solvency projections include annual 8% rate increases as part of their base line. Changes to this rate of increase in any given year are based on an evaluation of NMRHCA’s overall loss ratio (how closely NMRHCA rates match actual costs). Mr. Tyndall noted that, last year, the rates did not quite keep up with actual costs, and in 2013 rates were raised by 8% with some benefit modifications, resulting in a little bit of progress. The overall loss ratio has improved slightly from 104% to 103%, almost all of it because of federal funds from the Medicare Supplement plan. As such, it is recommended that pre–Medicare plans adjust with trend and the Medicare Supplement be given due consideration of its improved position. Mr. Tyndall recommended that the Board adjust all pre–Medicare rates by 8% and the Medicare Supplement by 6% in accordance with the current loss ratio. Mr. Tyndall stated that 40,261 members would be impacted, with an average impact of $14 per month. The increases would be as follows: • Premier—Retiree: $10.78 • Premier—Spouse: $20.02 • Premier Plus—Retiree: $20.15 • Premier Plus—Spouse: $31.20 • Medicare Supp.—Retiree: $9.05 • Medicare Supp.—Spouse: $13.58 Mr. Crandall moved approval to adjust all pre–Medicare rates by 8% and the Medicare Supplement by 6% in accordance with the current loss ratio. Mr. Montaño seconded the motion. Ms. Goodwin asked that the Board act on the following at the August meeting: For 2015, a differential premium for smokers; Beginning January 2014, new members be required to have a health risk assessment; and Beginning January 2015, require a mandatory health risk assessment for all members. Ms. Goodwin said this implementation schedule would give sufficient notice to the members. She recommended that the NMRHCA take an aggressive approach, including having tobacco cessation programs available. The motion passed unanimously by voice vote. Regarding Ms. Goodwin’s recommendations, Chairman Santistevan recommended doing the health risk assessment as a pilot program for all new members beginning in January 2014, which would allow an opportunity receive feedback on what is and isn’t working and what changes should be made before making the program permanent.

Board of Directors Regular Meeting

September 3, 2013

Ms. Goodwin further recommended that the NMRHCA begin having a conversation with its vendors beginning in 2014 on a fee–for–outcome as opposed to a fee–for–service, with the idea of improving outcomes and reducing costs. Mr. Tyndall said these conversations have already begun with some providers, and will continue. He added that he would expect the next round of renewals with the vendors to include a fee for outcome component. Mr. Tyndall commented that it may be problematic to tie reimbursement to outcomes, but NMRHCA can make sure that it is providing the doctors, hospitals and clinics the right incentives for them to keep the care as well–managed as possible. Ms. Goodwin agreed that this is a great way for the agency to go; with the passage with the Telemedicine Act in New Mexico, it has made it possible for providers to provide those services telephonically. However, because NMRHCA is the payer, it also has the option of moving away from only allowing physician–based services to nurse–based services. She said the NMRHCA should work with the vendors on this. Ms. Padilla–Jackson stated that, over the next year, she would like the Board to formalize the NMRHCA’s funding goals as part of the strategic planning process. While the Board informally discusses extending out solvency from 15 years to 20 years, it really has not formalized that. She added that the goals should also address customer service, quality of service, etc., and should be incorporated into an action plan. Chairman Santistevan agreed. He noted that the current strategic plan has a 5–year action plan with a 30–year solvency window. He said there are a number of variables, including ER–EE contributions. Ms. Goodwin said she would also like to see a timetable for being fully funded as part of the strategic planning process, given that GASB is about to start looking at other post– employment benefits, which includes retiree healthcare, and probably make the same changes in financial reporting and accounting that they’ve just made for pension plans. DATE AND LOCATION FOR THE NEXT REGULAR BOARD MEETING: August 6, 2013, 9:30 a.m. NMRHCA Board Room, 2nd floor, Suite 207, 4308 Carlisle Blvd., NE., Albuquerque, NM. OTHER BUSINESS Board members signed and turned in the Code of Ethics Disclosure Statement. ADJOURNMENT Its business completed, the NMRHCA Board adjourned the meeting at 10:55 a.m.

Board of Directors Regular Meeting

September 3, 2013

Alfredo Santistevan, Chair

Board of Directors Regular Meeting

Joe Monta単o, Secretary

September 3, 2013

NMRHCA Staff Recommendation for 2014 Medicare Advantage Procurement

Background NMRHCA’s last procurement of Medical plan services (including Medicare Advantage) became effective July 1, 2012. While the procurement process generally allows for a four‐year cycle, market conditions warranted a reexamination of the Medicare Advantage offerings. Provider network changes as well as a larger array of market options were contributing factors. Board approval for a procurement specific to Medicare Advantage products was granted in December, 2012 for a January 1, 2014 effective date.

Process NMRHCA collaborated with General Service Department’s State Purchasing Division to ensure the process was in accordance with the state’s Procurement Code and would yield the most advantageous results to the agency. The Request for Proposal was released in May, 2013 with responses received in June, 2013. The proposals were reviewed by an evaluation committee with representation from the Board of Directors, agency management, customer service as well an external adviser from the IBAC purchasing collaborative. A consensus scoring methodology was employed and there was unanimous agreement of the resulting recommendation.

Recommendation NMRHCA staff requests board approval to pursue contract negotiations with the following organizations: Lovelace Health Plan (Statewide HMO) Presbyterian Health Plan (Statewide PPO) United Health Care (Nationwide PPO) Negotiations will proceed in accordance with procurement guidelines and rates as outlined in the attached Evaluation Committee Report which will be made public upon successful negotiations/awards. All contracts negotiated as a result of this recommendation will be subject to board approval.

Board of Directors Regular Meeting

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE 2:30 P.M., August 15, 2013 NMRHCA 4308 Carlisle Blvd, NE, Suite 104 Albuquerque, NM Participant Passcode: 473289 Phone Number: Toll free: 1-888-205-5513 AGENDA Attendees:

Mr. Alfredo Santistevan, Chair Mr. Joe Montaño Mr. Tom Sullivan

Guests: Staff:

Mr. Mark Tyndall, Executive Director Mr.David Archuleta, Deputy Director Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Call to Order Roll Call to Ascertain Quorum Approval of Agenda Open Discussion. Budget Strategic Plan IT Plan Executive Director’s Report President’s Report Other Business Date and Location for the Next Regular Meeting Adjourn

Board of Directors Regular Meeting

Mr. Santistevan, Chair Mr. Bantista, Recorder Mr. Santistevan, Chair Mr.

Santistevan, Chair

Mr. Tyndall, Executive Director Mr. Santistevan, Chair Mr. Santistevan, Chair

September 3, 2013

Minutes of the Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE August 15, 2013, 2:30 PM 4308 Carlisle Blvd. NE, Suite 104 Albuquerque, New Mexico CALL TO ORDER Mr. Santistevan, Board President, called the meeting to order at ~2:35 PM. ROLL CALL TO ASCERTAIN QUORUM Mr. Santistevan. Mr. Sullivan, Vice-President, and Mr. Montaño, Secretary, attended. APPROVAL OF AGENDA The Committee approved the agenda by unanimous vote. OPEN DISCUSSION Legislative matters were discussed by the Committee. BUDGET REPORT Mr. Tyndall, Executive Director, reviewed the Staff recommended budget request. STRATEGIC PLAN Mr. Tyndall reviewed the Strategic plan prepared under by Staff according to statutory budget request guidance. IT PLAN The IT plan, also part of the statutory budget request, has been prepared by Staff in accordance with those rules. EXECUTIVE DIRECTOR'S REPORT Mr. Tyndall reported Staff progress in several personnel matters. PRESIDENT'S REPORT The schedule for Executive, Finance and Investment Committee meetings was discussed. The topics for Committee Agendas were designated for the Executive Director’s action. OTHER BUSINESS The Committee discussed topics for future Board meetings. DATE AND LOCATION OF THE NEXT MEETING The next Executive Committee meeting is to be Monday, August 19, 2013, at 11:30. ADJOURN The Committee adjourned ~3:15 PM.

Board of Directors Regular Meeting

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE 11:00 A.M., July 22, 2013 NMRHCA 4308 Carlisle Blvd, NE, Suite 104 Albuquerque, NM Participant Passcode: 473289 Phone Number: Toll free: 1-888-205-5513 AGENDA Attendees:

Mr. Alfredo Santistevan, Chair Mr. Joe Montaño Mr. Tom Sullivan

Guests: Staff:

Mr. Mark Tyndall, Executive Director Mr.David Archuleta, Deputy Director Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Call to Order Roll Call to Ascertain Quorum Approval of Agenda Open Discussion. Executive Director’s Report President’s Report Other Business Date and Location for the Next Regular Meeting Adjourn

Board of Directors Regular Meeting

Mr. Santistevan, Chair Mr. Bantista, Recorder Mr. Santistevan, Chair Mr. Santistevan, Chair Mr. Tyndall, Executive Director Mr. Santistevan, Chair Mr. Santistevan, Chair

September 3, 2013

Minutes of the Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE July 22, 2013, 11:00 AM 4308 Carlisle Blvd. NE, Suite 104 Albuquerque, New Mexico CALL TO ORDER Mr. Santistevan, Board President, called the meeting to order at ~11:00 AM. ROLL CALL TO ASCERTAIN QUORUM Mr. Santistevan. Mr. Sullivan, Vice-President, and Mr. Monta単o, Secretary, attended. APPROVAL OF AGENDA The Committee approved the agenda by unanimous vote. OPEN DISCUSSION The Legislative Finance Committee had met July 17 through 19. Mr. Tyndall, Executive Director, Mr. Archuleta, Deputy Director, and Mr. Santistevan had the opportunity to attend the Group Health Benefits and Premiums, Risk Rates Fund Balances, and Actuarial Conditions session and shared their observations with Mr. Monta単o. EXECUTIVE DIRECTOR'S REPORT Mr. Sullivan joined the meeting as Mr. Tyndall reviewed a presentation in advance of a scheduled meeting with Department of Finance and Administration. The presentation was discussed in detail. The Committee expressed their appreciation. Mr. Tyndall has an approved leave scheduled for later in the week. PRESIDENT'S REPORT The next meeting should discuss the Investment and Pensions Oversight Committee. OTHER BUSINESS Mr. Monta単o described the expectations for an upcoming presentation for educational employees and retirees. Mr. Archuleta may represent the Agency at this meeting. DATE AND LOCATION OF THE NEXT MEETING The next Executive Committee meeting was not set. ADJOURN The Committee adjourned ~11:58 AM.

Board of Directors Regular Meeting

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE 11:00 A.M., August 5, 2013 NMRHCA 4308 Carlisle Blvd, NE, Suite 104 Albuquerque, NM Participant Passcode: 473289 Phone Number: Toll free: 1-888-205-5513 AGENDA Attendees:

Mr. Alfredo Santistevan, Chair Mr. Joe Montaño Mr. Tom Sullivan

Guests: Staff:

Mr. Mark Tyndall, Executive Director Mr.David Archuleta, Deputy Director Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Call to Order Roll Call to Ascertain Quorum Approval of Agenda Open Discussion. Investment Pension Oversight Committee Executive Director’s Report President’s Report Other Business Date and Location for the Next Regular Meeting Adjourn

Board of Directors Regular Meeting

Mr. Santistevan, Chair Mr. Bantista, Recorder Mr. Santistevan, Chair Mr. Santistevan, Chair Mr. Tyndall, Executive Director Mr. Santistevan, Chair Mr. Santistevan, Chair

September 3, 2013

Revised: August 2, 2013 TENTATIVE AGENDA for the THIRD MEETING IN 2013 of the INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE August 9, 2013 Room 309, State Capitol Santa Fe, New Mexico Friday, August 9 9:00 a.m.

Call to Order —Representative Jim R. Trujillo, Chair

9:05 a.m.

Approval of July 10, 2013 Meeting Minutes

9:10 a.m.

(1)

Capital Outlay: Statewide and Local Overview —Sonya Snyder, Senior Fiscal Analyst, Legislative Finance Committee —Kathleen Dexter, Researcher, Legislative Council Service

10:00 a.m.

(2)

State Investment Council (SIC) Investment Policies, Practices and Returns of the Economically Targeted Investments; Sun Mountain Capital Report on Private Equity Programs; Albuquerque Economic Development Report on "Closing Funds" as Economic Tools —Steven K. Moise, State Investment Officer, SIC —Vince Smith, Deputy State Investment Officer, SIC —Sally Corning, Partner, Sun Mountain Capital —Gary Tonjes, President, Albuquerque Economic Development

11:00 a.m.

(3)

New Mexico Small Business Investment Corporation (SBIC) Programs Update —Russ Cummins, Executive Director and Investment Adviser, SBIC —Joseph Badal, President and Chair, SBIC

12:30 p.m. 1:30 p.m.

Lunch (4)

Educational Retirement Board (ERB) Update on Meetings With Stakeholders and Possible Changes to the Pension Plan; Update on Pending Litigation —Jan Goodwin, Executive Director, ERB —Chris Schatzman, General Counsel, ERB

Board of Directors Regular Meeting

September 3, 2013

2:15 p.m.

(5)

New Mexico Retiree Health Care Authority (RHCA) — Post-Annual Board Meeting Update and Possible Statutory Changes —Mark Tyndall, Executive Director, RHCA

3:00 p.m.

(6)

Judicial Retirement Act and Magistrate Retirement Act Potential Plan Solvency Changes, Report on Stakeholders' Input —Arthur W. Pepin, Director, Administrative Office of the Courts (AOC) —Oscar Arevalo, Chief Financial Officer, AOC —Wayne Propst, Executive Director, Public Employees Retirement Association

4:30 p.m.

Adjourn

Board of Directors Regular Meeting

September 3, 2013

Minutes of the Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE August 5, 2013, 11:00 AM 4308 Carlisle Blvd. NE, Suite 104 Albuquerque, New Mexico CALL TO ORDER Mr. Santistevan, Board President, called the meeting to order at ~11:16 AM. ROLL CALL TO ASCERTAIN QUORUM Mr. Santistevan. Mr. Sullivan, Vice-President, and Mr. Monta単o, Secretary, attended. APPROVAL OF AGENDA The Committee approved the agenda by unanimous vote. OPEN DISCUSSION Mr. Sullivan and Mr. Monta単o discussed a lawsuit between Educational Retirement Board (ERB) and the University of New Mexico (UNM). Potential changes to Federal Laws that could affect Public Employees Retirement Association (PERA) pensions. INVESTMENT AND PENSIONS OVERSIGHT COMMITTEE The Investment and Pensions Oversight Committee will meet August 9, 2013, in Room 309 of the State Capital. Mr. Tyndall, Executive Director, and Mr. Archuleta, Deputy Director, are prepared to appear and present to the Committee. Mr. Santistevan and Mr. Monta単o will attend the session. Elements of the presentation were discussed by the Committee. EXECUTIVE DIRECTOR'S REPORT Mr. Tyndall reported the progress of the selection process for a Medicare insurance provider organization. PRESIDENT'S REPORT The schedule for Finance and Investment Committee meetings was discussed. Mr. Santistevan reviewed the topics for Committee Agendas with staff. OTHER BUSINESS Mr. Monta単o discussed matters related to the ERB. ERB is also scheduled to present at the IPOC on the same day. DATE AND LOCATION OF THE NEXT MEETING The next Executive Committee meeting was not set. ADJOURN The Committee adjourned ~11:48 AM.

Board of Directors Regular Meeting

September 3, 2013

Mr. Alfredo Santistevan, Chair Mr. Joe Montaño Mr. Tom Sullivan

Guests: Staff:

Mr. Mark Tyndall, Executive Director Mr.David Archuleta, Deputy Director Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Board of Directors Regular Meeting

Mr. Santistevan, Chair Mr. Bantista, Recorder Mr. Santistevan, Chair Mr.

Santistevan, Chair

Mr. Tyndall, Executive Director Mr. Santistevan, Chair Mr. Santistevan, Chair

September 3, 2013

Board of Directors Regular Meeting

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE August 19, 2013, 11:30 AM 4308 Carlisle Blvd. NE, Suite 104 Albuquerque, New Mexico Participant Passcode: 473289 Phone Number: Toll free: 1-888-205-5513 AGENDA Attendees:

Mr. Alfredo Santistevan, President Mr. Joe Montaño, Secretary

Member Excused:

Mr. Tom Sullivan, Vice President

Staff:

Mr. Mark Tyndall, Executive Director Mr. David Archuleta, Deputy Director Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Call to Order

Mr. Santistevan, President

Roll Call to Ascertain Quorum

Mr. Bantista, Recorder

Approval of Agenda

Mr. Santistevan, President

Strategic Plan Discussion

Mr. Santistevan, President

Executive Director’s Report

Mr. Tyndall, Executive Director

President's Report

Mr. Santistevan, President

Other Business

Mr. Santistevan, President

Date and Location for the Next Regular Meeting: The next Executive Committee meeting is to be determined. Adjourn

Board of Directors Regular Meeting

September 3, 2013

Minutes of the Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY EXECUTIVE COMMITTEE August 19, 2013, 11:30 AM 4308 Carlisle Blvd. NE, Suite 104 Albuquerque, New Mexico CALL TO ORDER Mr. Santistevan, Board President, called the meeting to order at ~11:30 AM. ROLL CALL TO ASCERTAIN QUORUM Mr. Santistevan and Mr. Montaño, Secretary, attended. Mr. Sullivan, Vice-President, was excused. APPROVAL OF AGENDA The Committee approved the agenda by unanimous vote. STRATEGIC PLAN DISCUSSION Mr. Tyndall, Executive Director, reviewed the Strategic Plan submission as part of the Agency’s Budget Request. Significant changes of the FY2014 Strategic Priorities were described in detail. Mr. Archuleta, Deputy Director, has been working with other Agencies to coordinate Performance Measures revisions. EXECUTIVE DIRECTOR'S REPORT Mr. Tyndall noted parts of the IT Plan are controlled outside the Agency. PRESIDENT'S REPORT The Finance Committee will hear the Draft Budget request on Wednesday, August 21, 2013. OTHER BUSINESS Mr. Montaño ask the progress of the Medicare Advantage Plan procurement. DATE AND LOCATION OF THE NEXT MEETING The next Executive Committee meeting was not set. ADJOURN The Committee adjourned ~12:15 PM.

Board of Directors Regular Meeting

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY FINANCE COMMITTEE August 21, 2013 11:30 AM ERB Board Room 701 Camino de los Márquez Santa Fe, New Mexico Participant Passcode: 473289 Phone Number: Toll free: 1-888-205-5513 AGENDA Attendees:

Mr. Alfredo Santistevan, Chair Mr. Doug Crandall Ms. Jan Goodwin Ms. Olivia Padilla-Jackson Mr. Joe Montaño Mr. Tom Sullivan

Staff:

Mr. Mark Tyndall, Executive Director Mr. David Archuleta, Deputy Director Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Call to Order

Mr. Santistevan, Chair

Roll Call to Ascertain Quorum

Mr. Bantista, Recorder

Approval of Agenda

Mr. Santistevan, Chair

FY2015 Budget Review

Mr. Tyndall, Executive Director Mr. Archuleta, Deputy Director

Action Item Approval

Mr. Santistevan, Chair

Open Discussion

Mr. Santistevan, Chair

Executive Director’s Report

Mr. Tyndall, Executive Director

President’s Report

Mr. Santistevan, Chair

Other Business

Mr. Santistevan, Chair

Date and Location for the Next Regular Meeting The Date and Location for the next Committee meeting is to be determined. Adjourn

Board of Directors Regular Meeting

September 3, 2013

Minutes of the Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY FINANCE COMMITTEE August 21, 2013 11:30 AM ERB Board Room 701 Camino de los Márquez Santa Fe, New Mexico CALL TO ORDER Mr. Alfredo Santistevan, Chair, called the meeting to order at ~11:38 AM. ROLL CALL TO ASCERTAIN QUORUM Mr. Santistevan and Ms. Goodwin attended. Mr. Crandall, Mr. Montaño, and Ms. Padilla-Jackson attended by teleconference. Mr. Sullivan was excused. APPROVAL OF AGENDA The agenda was approved by unanimous voice vote. FY2015 BUDGET REVIEW Mr. Tyndall, Executive Director, and Mr. Archuleta, Deputy Director reviewed the staff recommendations for the Agency FY2015 Appropriation request. The Committee requested some text changes. ACTION ITEM Mr. Santistevan stated that an approval was not in order at this time. OPEN DISCUSSION The Committee discussed reports and presentations that would be helpful to the Board. Stakeholder contact and outreach was discussed. EXECUTIVE DIRECTOR'S REPORT None. PRESIDENT'S REPORT None. OTHER BUSINESS None. DATE AND LOCATION FOR THE NEXT REGULAR MEETING: The next Finance Committee meeting is expected to be August 28, 2013, in the Albuquerque office. ADJOURN The meeting adjourned at ~12:45 PM.

Board of Directors Regular Meeting

September 3, 2013

Regular Meeting of the NEW MEXICO RETIREE HEALTH CARE AUTHORITY FINANCE COMMITTEE 11:30 August 28, 2013 NMRHCA 4308 Carlisle Blvd, NE, Suite 104 Albuquerque, NM Participant Passcode: 473289 Phone Number: Toll free: 1-888-205-5513 AGENDA Attendees:

Mr. Alfredo Santistevan, Chair Mr. Doug Crandle Ms. Jan Goodwin Ms. Olivia Padilla-Jackson Mr. Joe Montaño Mr. Tom Sullivan

Guests: Staff:

Mr. Mark Tyndall, Executive Director Mr. David Archuleta Mr. Rudy M. Bantista, Communications and Board Recording Secretary

Call to Order Roll Call to Ascertain Quorum Approval of Agenda FY 15 Budget Request - Final Review anApproval Open Discussion Executive Director’s Report President’s Report Other Business Date and Location for the Next Regular Meeting Adjourn

Board of Directors Regular Meeting

Mr. Santistevan, Chair Mr. Bantista, Recorder Mr. David Archuleta Mr. Santistevan, Chair Mr. Tyndall, Executive Director Mr. Santistevan, Chair Mr. Santistevan, Chair

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FY15 IT PLAN Summary Next FY15 Security Assessment Date

Third party assessment or self‐assessment

September 2013 (annual assessment)

Third Party Assessment

Specific Skill Set Example: Data Base administration

Gap Impacts Example: Inability to install updates

Mitigation Steps if any Example: Delay updates or hire a contractor

Systems Administrator

Limited ability to adequately support the agencies system programming needs and support.

The IT director acts as a backup to the current Systems Analyst.

Typical IT Training Provider

Number of Staff to be Trained

Typical Individual Cost of Training

Configuring and Managing and Maintaining current version of the Windows Server Software, specifically VM Ware.

Global Knowledge

$2,000.00 per person.

C # training.

Global Knowledge

$3,000.00

IT Training Area (add lines as needed)

Board of Directors Regular Meeting

September 3, 2013

Plans to develop as a new service Unique infrastructure Service

Plans to move service into production

Plans to expand or enhance the service

Plans to replace the service

Plans to sunset or remove the service

No current plans to change service

Personal Computer Support

Network Support

Web Site Support

Audio/Visual Support

Avaya Call Center System

Plans to develop as a new service Unique Business Application Service

Plans to move service into production

Plans to expand or enhance the service

Plans to replace the service

Retiree Benefit Intake System

Employer System

Scanning System

Federal or State of New Mexico Initiative, Statutory Mandates or Regulatory Compliance Change Federal Change: HIPAA 5010 Compliance continues in 2013/2014

Plans to sunset or remove the service

No current plans to change service

Impact The 5010 ASC X12 transactions focus on the electronic exchange of administrative and financial information between health care providers and health plans for patient care services, claims and remittance payment. Covered entities, such as health plans, healthcare clearinghouses, and healthcare providers, are required to conform to HIPAA 5010 standards. Use of the 5010 version of the X12 standards and the NCPDP D.0 standard is required by federal law. The NMRHCA has meet the standard with one contracted health care provider and are in the process of working with other contracted health care providers so to meet the new standard with all providers when they are ready.

Board of Directors Regular Meeting

September 3, 2013

Accomplishment

Start of the REBIS Upgrade and Enhancement project

Actual Expenditures

IT Item Procured, Built, Developed or Updated

Impact of Accomplishment to the Agency

$208,350 of $1,926,300

Six sprint cycles have been completed in support of the system architecture and database design. Initial Requirements and Design documentation has been delivered. Overall project status is GREEN

Reduce the time it takes to process member information which helps the agency meet the goal of having efficient and effective operational structure for the purpose of administering the NMRHCA’s benefit programs. Provide a system that has adequate integrity checks so that errors are reduced and data is reliable. This helps the agency of meeting the goal of having efficient and effective operational structure for the purpose of administering the NMRHCA’s health care and life insurance benefits program. Provide better reporting capabilities which helps the agency meet the goal of having efficient and effective operational structure for the purpose of administering the NMRHCA’s health care and life insurance benefits program.

Board of Directors Regular Meeting

September 3, 2013

FY14 Agency IT Plan: FY13 Initiatives or Project FY13: Approval of the REBIS project.

Agency Name Project Name

REBIS Upgrade and Enhanceme nt Project

Print Name Signature Date Phone Email

New Mexico Retiree Health Care Authority Funding Type (Capital, Special, or Supplemental)

Anticipated Anticipated Funding Start Date End Date Source

Special

06/05/12

Agency 3 digit 34300 Code FY13 FY14

Laws 2012, $208,350 Chapter 19, Section 7(6).

10/01/14

1,717,950

CIO or IT Agency Cabinet Lead Secretary/Direc tor (mandatory) (mandatory) Mark Tyndall

Budget Director (mandatory Tomas Rodriguez

(505) 222‐6416

(505) 222‐6421

(505) 222‐6406

Mark.Tyndall@state.nm.us

Tomas.Rodriguez@state.n m.us

Debbie.Vering@state.nm.us

Board of Directors Regular Meeting

Project Total

$1,926,300

Debbie Vering

September 3, 2013

Agency IT Strategic Goal‐(1) REQUIRED (The goal should reflect 3‐5 years) To implement efficient and effective operational structure for the purpose of administering the NMRHCA’s benefit programs. (Why) Goal‐(n) Alignment Enter below he Department Strategic Goal(s) and the State IT Strategic Goal(s) in which the IT Strategic Goal‐1 is in alignment with: Department Strategic Goal:

Improve management and IT processes to assure the accuracy and timely receipt of employer/employee contributions from participating entities.

State IT Strategic Goal:

Encourage IT Resource Management to deliver real value to stakeholders and citizens.

IT Performance Measure (PM) (What) Target Objectives Enter below the Strategic Target Objective for IT Strategic Goal‐1. (The objective should Enter below the IT Performance Matrix(s) in which the objective is measured by: reflect 1‐5 years) Encourage IT Resource Management to deliver real value to stakeholders.

Encourage IT Resource Management to deliver real value to stakeholders.

(How) Strategies Construct methods that will be employed to achieve the result of an Objective. Enter the Strategic Strategies for Goal‐1

To have the new REBIS system in place

(When) (Strategic Planning 1‐5 years) Prior Year

Strategy‐1 Reduce the time it takes to process member information which helps the agency X meet the goal of having efficient and effective operational structure for the purpose of administering the NMRHCA’s benefit programs.

(Strategic Actions) Initiatives Assemble resources and scope to achieve the result of the Strategic Strategy‐ 1. Enter the Strategic Initiatives for Goal‐1, Strategy‐.

Initiative‐(2) – To understand and capture the business requirements of the Finance Department

Initiative‐(3 ) – To understand, capture, and implement of Executive Management

Initiative (4) – To understand, capture, and implement the business requirements of the participants we serve.

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

Prior Year

Initiative‐1 To better understand the business process of the Customer Service Department.

Board of Directors Regular Meeting

FY15 PM Target Enter proposed FY15 target below:

September 3, 2013

Strategy‐(n) (Add lines as needed)

Prior Year

(Strategic Actions) Initiatives

FY 2015

FY 2016

FY 2017

Assemble resources and scope to achieve the result of the Strategic Strategy‐(n). Enter the Strategic Initiatives for Goal‐1, Strategy‐(n).

Initiative‐1 Legislative support – To obtain legislative support for the use of internal funding for the project.

Initiative‐2 Board project approval and support – To obtain project approval and funding support for project.

Tactical Actions – Equipment and Software IT equipment and software that will be refreshed to achieve the result of Goal‐1

Equipment/Software

Description

(When) (Tactical Planning 1‐3 years)

FY 2015

Prior Year

HP ProLient Servers (Production/Test/Development)

To add three servers, one server will be virtualized for the development and test environment of the project the other two will be dedicated servers for production.

Tactical Actions – IT Projects IT projects that will be active in FY15 to achieve the result of Objective(n) for Goal‐1

Project Name

Project Description

(When) (Tactical Planning 1‐3 years)

Include project certification phase if applicable. Prior Year

REBIS Upgrade and Enhancement Project

Board of Directors Regular Meeting

Planning Phase

September 3, 2013

Information Technology Base Operating Budget Informational Purposes Only 343000 Agency Name: Appropriation Funding Type:

New Mexico Retiree Health Care Authority Base Request Operational Support of IT Please check one of the options below:

Flat Budget or Expansion from previous year

FY12 Actual

General Fund Other State Funds ISF/IAT Federal Funds Total

Agency Code:

0.0

Category or Account Description

FY12 Actual

Personal Services & Employee Benefits 267.0 Contractual & Professional Services 54.9 IT Other Services

FY13 Actual

Revenue IT Base Budget (dollars in thousands) FY14 FY15 Request OpBud

FY16 Estimate

342.7

427.9

469.9

342.7

427.9

469.9

Expenditure Categories (dollars in thousands) FY14 FY15 OpBud Request

FY13 Actual

FY16 Estimate

267.0

369.9

53.7

35.00

75.00

Other Financing Uses 40.7

22.0

23.0

25.0

Total

362.6

342.7

427.9

469.9

Agency Cabinet Secretary/Director (mandatory) Mark Tyndall

CIO or IT Lead (mandatory) Tomas Rodriguez

Budget Director (mandatory) Debbie Vering

(505) 222‐6416

(505) 222‐6421

(505) 222‐6406

Mark.Tyndall@state.nm.us

Tomas.Rodriguez@state.nm.us

Debbie.Vering@state.nm.us

Print Name Signature Phone Date Email address

Board of Directors Regular Meeting

September 3, 2013

Board of Directors Regular Meeting

September 3, 2013

NMRHCA Proposed Timeline for Further Evaluation and Implementation of Wellness & Disease Management Programs

November, 2013 ‐ Discuss and approve goals for Wellness and Disease Management programs for 2014

II.

January, 2014 ‐ Update implementation of activities to achieve goals

III.

March, 2014 ‐ Review most recent peer‐reviewed studies of various wellness program effectiveness including impact of incentives / penalties (Discussion to be led by field experts)

IV.

July, 2014 ‐ Establish any additional parameters for Wellness and Disease Management programs as well as goals for 2015

September, 2014 ‐ Review 1st half of 2014 Wellness / Disease Mgmt results compared to goals

Board of Directors Regular Meeting

September 3, 2013

NEW MEXICO RETIREE HEALTH CARE AUTHORITY CHANGE IN NET ASSET VALUE FOR THE MONTH ENDED JUNE 30, 2013

Market Value June 30, 2008 June 30, 2009 June 30, 2010 June 30, 2011 June 30, 2012

Large Cap Active $33,337,848.09 $25,428,515.83 $29,156,286.60 $29,235,981.94 $31,331,005.79

Core Bonds $54,039,938.62 $52,613,843.42 $60,717,949.86 $73,235,011.40 $86,755,598.95

Large Cap Index $32,093,972.78 $24,010,898.77 $27,937,204.70 $26,163,668.03 $30,037,991.92

Non U.S. Developed $34,258,914.03 $22,957,428.20 $24,731,396.80 $33,147,628.54 $31,909,575.81

Non U.S. Emerging $8,414,684.58 $5,760,368.05 $7,089,655.94 $29,974,935.32 $27,067,713.47

Mid/Small Cap $8,591,721.48 $5,703,696.21 $6,840,515.93 $21,622,699.75 $22,532,433.90

Total $170,737,079.59 $136,474,750.49 $156,473,009.83 $213,379,924.98 $229,634,319.83

May 31, 2013

$39,691,200.23

$96,778,915.95

$39,037,165.04

$41,700,684.55

$31,370,799.63

$30,908,664.80

$279,487,430.21

Prior Month Adjustment

0.00

Contributions

0.00

Distributions/Withdrawals

0.00

Fees

(38,869.64)

(48,673.14)

(1,749.34)

(4,830.61)

(10,357.57)

(52,561.37)

(157,041.68)

Income Earned

51,414.16

326,767.18

(3.49)

59,314.66

135,520.25

22,087.16

595,099.93

Capital Appreciation/Depreciation

(539,924.51)

(2,786,191.65)

(529,732.08)

(1,539,110.96)

(2,150,929.58)

182,955.78

(7,362,933.01)

$39,163,820.24

$94,270,818.34

$38,505,680.13

$40,216,057.64

$29,345,032.73

$31,061,146.38

$272,562,555.45

Market Value

June 30, 2013

New Mexico Retiree Health Care Authority Market Value of Investment Fiscal Year 2013 $250,000,000 $225,000,000 $200,000,000 $175,000,000 $150,000,000 $125,000,000 $100,000,000 $75,000,000 $50,000,000 $25,000,000 $0

Mid/Small Cap

Emerging Markets Non US Developed

Large Cap Index

Board of Directors Regular Meeting

September 3, 2013

30-Jun-13

31-May-13

30-Apr-13

31-Mar-13

28-Feb-13

31-Jan-13

31-Dec-12

30-Nov-12

31-Oct-12

30-Sep-12

31-Aug-12

31-Jul-12

Core Bonds

NEW MEXICO RETIREE HEALTH CARE AUTHORITY PORTFOLIO ALLOCATION FOR THE MONTH ENDED JUNE 30, 2013

Investment Equity Domestic Large Cap Active Large Cap Index Mid/Small Cap

Policy Range

39,163,820.24 38,505,680.13 31,061,146.38

14% 14% 11% 40%

12.5% 12.5% 10% 35%

20-30%

40,216,057.64 29,345,032.73

16% 10% 26%

15% 15% 30%

10-20% 10-20%

94,270,818.34

35% 35%

30-40%

272,562,555.45

100%

Market Value

International Non US Developed Emerging Markets

Fixed Income Core Bonds

Total

% of Total

Long-term Target

5-15%

Asset Allocation 11% Emerging Markets

10% Mid/ Small Cap

14% Large Cap Active

37% Core Bonds

16% Non US Developed 12% Large Cap Index

Board of Directors Regular Meeting

September 3, 2013

New Mexico State Investment Council

Investment Holdings Report June 30, 2013 FY 2013

Board of Directors Regular Meeting

September 3, 2013

Investment Holdings Report June 30, 2013 FY 2013

Index Page No.

Description Managed Net Assets

Land Grant Permanent Fund

Severance Tax Permanent Fund

Tobacco Settlement Permanent Fund

Water Permanent Fund

Third Party Investors Asset Allocation

Third Party Investors Allocation by Pool

Change in Market Values for Month by Asset Class

Change in Market Values for Month for Investment Pools Detail by Mgr Change in Market Values for Month for Permanent Funds Change in Market Values for Month for Third Party Investors Change in Market Values for Quarter by Asset Class Change in Market Values for Quarter Investment Pools Detail by Manager Change in Market Values for Quarter for Permanent Funds Change in Market Values for Quarter for Third Party Investors Notes to Investment Holdings Report

Board of Directors Regular Meeting

9-10 11 12-15 16 17-18 19 20-23 24

September 3, 2013

State Investment Council Managed Net Assets June 30, 2013

Securities

Cash & Accrued Income

Other Assets & Liabilities

Net Assets

% of Total

Equities Domestic Equities: Large Cap Pools Large Cap Active Pool Large Cap Indexed Pool Large Cap Enhanced Indexed Pool Total Large Cap Equities

2,005,168,349 2,683,405,484 495,445,660 5,184,019,493

65,271,892 387,084 2,019,237 67,678,213

(4,551,574) (590,272) 1,861,651 (3,280,195)

2,065,888,667 2,683,202,296 499,326,548 5,248,417,511

12.09% 15.70% 2.92% 30.71%

Small/Mid Cap Pool Mid/Small Cap Pool Small/Mid Cap Index Pool Small/Mid Cap Enhanced Index Pool Total Small/Mid Cap Equities

699,505,987 60,060,014 269,544,663 1,029,110,664

28,536,948

2,293,978

1,948,673 30,485,621

48,213 2,342,191

730,336,913 60,060,014 271,541,549 1,061,938,476

4.27% 0.35% 1.59% 6.21%

Total Domestic Equities

6,213,130,157

98,163,834

(938,004)

6,310,355,987

36.93%

International Pools Non-US Developed Markets Non-US Emerging Markets Total International Equities

1,463,812,211 880,658,342 2,344,470,553

12,733,532 12,323,436 25,056,968

(3,558,901) (315,074) (3,873,975)

1,472,986,841 892,666,703 2,365,653,544

8.62% 5.22% 13.84%

Total Equities

8,557,600,710

123,220,802

(4,811,979)

8,676,009,532

50.77%

3,277,093,326 691,737,545 3,968,830,871

102,910,558 2,557,578 105,468,136

(183,606,284) (183,606,284)

3,196,397,598 694,295,123 3,890,692,721

18.70% 4.06% 22.77%

128,062,993

54,424,478

182,487,471

1.07%

1,000,207,612

5.85%

444,900,073

2.60%

Fixed Income Core Bonds Pool Credit & Structured Finance Total Fixed Income Other Securities and Cash Real Estate

951,156,494

49,051,118

Real Assets

324,929,047

155,114,121

Absolute Return

1,157,157,527

9,831,538

1,166,989,058

6.83%

Private Equity Stock Distributions/Private Equity

1,623,375,710 2,736,681

101,324,867

1,724,700,577 2,736,681

10.09% 0.02%

16,585,787,040

672,073,575

17,088,723,725

100.00%

Total Managed Net Assets

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

(35,143,096)

(169,136,881)

September 3, 2013

Land Grant Permanent Fund June 30, 2013

Market Value Cash / Cash Equivalents / Accruals

% of Net Assets 84,516,510

Long-Term Target

0.70%

0.00%

36.90%

43.00%

1,674,870,603

13.80%

15.00%

6,165,998,336

51.70%

58.00%

Equities: Large Cap Active Pool

1,499,538,732

12.36%

Large Cap Index Pool Large Cap Enhanced Indexed Pool

1,861,941,051 375,005,049

15.34% 3.09%

Small/Mid Cap Active Pool

501,945,997

4.14%

Small/Mid Cap Index Pool

33,601,493

0.27%

219,095,411

1.80%

Small/Mid Cap Enhanced Index Pool Total US Equities

4,491,127,733

Non-US Developed Markets Pool

1,037,979,455

Non-US Emerging Markets Pool Total Non-US Equities Total Equities

Core Bonds Credit & Structured Finance

8.55%

636,891,148

5.25%

2,215,801,039

18.26%

547,659,491

4.51%

Total Fixed Income

2,763,460,530

14.00% 6.00% 22.77%

20.00%

Real Estate

752,617,971

6.20%

6.00%

Real Assets

357,554,394

2.95%

1.00%

1,165,533,233

9.60%

10.00%

846,945,076

6.98%

6.00%

12,136,626,050

100%

Private Equity: Private Equity National

1,165,533,233

Private Equity New Mexico Stock Distributions/Private Equity

9.60%

Total Private Equity

Absolute Return Total Fund Net Assets

0.00%

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

September 3, 2013

100%

Severance Tax Permanent Fund June 30, 2013

Market Value Cash / Cash Equivalents / Accruals

% of Net Assets

36,189,998

Long-Term Target

0.87%

0.00%

34.44%

43.00%

579,952,838

13.98%

15.00%

2,008,194,473

48.42%

58.00%

Equities: Large Cap Active Pool

488,918,877

11.79%

Large Cap Index Pool

585,082,438

14.11%

Large Cap Enhanced Indexed Pool

124,321,501

3.00%

Small/Mid Cap Active Pool

165,869,088

4.00%

Small/Mid Cap Index Pool

11,603,594

0.28%

Small/Mid Cap Enhanced Index Pool

52,446,137

Total US Equities

1.26% 1,428,241,636

Non-US Developed Markets Pool

365,517,918

Non-US Emerging Markets Pool Total Non-US Equities

214,434,920

Total Equities

Core Bonds Credit & Structured Finance

8.81% 5.17%

705,695,035

17.02%

146,634,150

3.54%

Total Fixed income

14.00% 6.00%

852,329,185

20.56%

20.00%

54,424,478

1.31%

0.00%

Real Estate

247,589,642

5.97%

6.00%

Real Assets

87,345,678

2.11%

Economically Targeted Invest.

Private Equity: Private Equity National

357,297,362

8.62%

Private Equity New Mexico Stock Distributions/Private Equity

201,869,983 2,736,680

4.87% 0.07%

Total Private Equity

Absolute Return Total Fund Net Assets

561,904,025

13.56%

10.00%

299,290,435

7.22%

6.00%

4,147,267,914

100.0%

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

September 3, 2013

71 3

Tobacco Settlement Permanent Fund June 30, 2013

Market Value Cash / Cash Equivalents / Accruals

% of Net Assets

7,087,024

Long-Term Target

4.16%

Equities: Large Cap Active Pool

421,434

0.25%

Large Cap Index Pool

82,219,396

48.32%

48.56%

46.00%

Small/Mid Cap Active Pool

1,100,827

0.65%

11.00%

Small/Mid Cap Index Pool

14,854,930 49.21%

57.00%

Total US Equities

98,596,587

Non-US Developed Markets Pool

8,141,011

4.78%

7.0%

Non-US Emerging Markets Pool

3,113,175

1.83%

3.0%

Total Non-US Equities

11,254,186

6.61%

10.00%

109,850,773

55.83%

67.00%

Core Bonds

37,191,027

21.86%

23.0%

Absolute Return

16,036,751

9.42%

10.00%

Total Fund Net Assets, excl. cash

163,078,551

91.27%

100.00%

Total Fund Net Assets

170,165,575

Total Equities

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

September 3, 2013

Water Permanent Fund June 30, 2013

Market Value Cash / Cash Equivalents / Accruals

% of Net Assets

269,392

Long-Term Target

0.58%

Equities: Large Cap Active Pool Large Cap Index Pool Small/Mid Cap Active Pool

(163,045)

-0.35%

24,741,987 2.86% 25,911,423

Non-US Developed Markets Pool

3,332,739

7.16%

Non-US Emerging Markets Pool

1,149,449

2.47%

Total Non-US Equities

46.0%

0.00%

1,332,481

Total US Equities

-0.35% 2.86%

11.00%

2.51%

57.00% 7.0% 3.0%

4,482,188

9.63%

10.00%

30,393,611

12.14%

67.00%

11,177,276

24.01%

23.0%

4,717,913

10.13%

10.00%

Total Fund Net Assets, excl. cash

46,288,800

46.86%

100.00%

Total Fund Net Assets

46,558,192

Total Equities

Core Bonds Absolute Return

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

September 3, 2013

735

Third Party Investors Asset Allocation June 30, 2013

Market Value Cash / Cash Equivalents

% of Net Assets 0

0.00%

Equities: Large Cap Active Pool

77,172,644

13.12%

Large Cap Index Pool

129,218,847

21.97%

60,088,679

10.22%

266,480,170

45.31%

Small/Mid Cap Active Pool Total US Equities Non-US Developed Markets Pool

58,015,748

9.86%

Non-US Emerging Markets Pool

37,077,866

6.30%

95,093,614

16.17%

Total Non-US Equities Total Equities

361,573,784

61.48%

Core Bonds

226,534,621

38.52%

Total Third Party Ownership

588,108,405

100.00%

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

September 3, 2013

Third Party Investors Allocation by Pool June 30, 2013 Large Cap

Large Cap

Non-US

Small/Mid

Non US

Active

Index

Core Bond

Emerging

Cap

Developed

Total

Pool

Markets Pool

Investments

NMMI Trust Scholarship

2,076,013

1,708,538

115,188

665,168

638,734

5,203,641

NMMI Legislative Scholarship

3,687,912

3,035,915

241,837

1,134,789

1,134,172

9,234,625

NMMI Patterson Account

1,740,727

1,430,932

114,105

535,514

534,559

4,355,837

NMMI Capital Outlay

377,455

314,585

24,796

116,384

117,570

950,790

NMIMT Employee Benefit Trust

545,035

272,606

119,454

85,867

1,022,962

NMIMT Plant/Debt/Allocated Fund

13,354,479

NMIMT Endowment Fund

13,952,628

11,145,303

25,097,931

NM Tech Research Fund

13,157,574

2,448,751

15,606,325

NMMI LFC/VC M

2,004,627

1,647,773

131,400

616,655

615,638

4,782,864

777,980

956,445

724,517

8,068,780

29,345,033

31,061,146

40,216,058

272,562,555

NM School for the Visually Handicapped NM Retiree Health Care Authority NM Commissioner of Public Lands-O&G NM Game and Fish Department Eastern NM University ISC-Improvement to the Rio Grande ISC-Improvement Works Construction PRC-Patients' Comp Fund LACCIPPERMANENT LACCEMETERY LACGENFUN

826,974

39,163,820

38,505,680

94,270,818

3,091,993

2,905,853

5,607,467

361,106 4,391,814

347,833 2,049,533

46,634 71,222

125,873 1,356,596

58,508 799,161

5,016,093

11,605,313 939,954 8,668,326

715,756

726,589

1,442,345

10,934,902

7,604,668

18,539,570

6,134,670

8,061,858

25,647,998

2,061,680

2,306,343

2,558,755

40,636,634

6,409,731

3,956,829

1,129,213

5,242,535

3,359,383

26,232,361

187,171

194,856

119,963

34,882

160,431

101,296

798,599

3,116,892

3,319,654

2,141,816

579,109

2,800,093

2,305,666

14,263,230

4,490,223

19,106,697

9,331,506

NM Finance Authority

NMMFA IFT Hou

NMPSIA - Benefits

5,877,838

3,956,937

830,823

1,555,872

594,659

12,816,129

NMPSIA - Risk

5,740,045

3,984,238

845,701

1,502,844

585,470

12,658,298

NMHU Endowment

1,327,727

936,916

105,353

391,372

188,062

2,949,430

Springer

43,519

24,084

32,840

34,025

34,720

169,188

1,087,424

10,502

48,185

1,348,383

CYFD Trust Fund Non-Expendable CYFD Next Generation Fund NMHED City of Las Cruces Total

202,272 202,272 6,815,221

6,963,435

5,780,701

3,083,537

77,172,644

129,218,847

1,087,424

10,502

4,404,135

569,066

226,534,621

37,077,866

3,893,347

23,596,920 9,331,506

48,185

1,348,383

1,264,861

23,910,065

5,513,793

2,001,722

16,379,753

60,088,679

58,015,748

588,108,405

June 2013 Investmnet Holdings Report 7/17/2013

Board of Directors Regular Meeting

September 3, 2013

Change in Market Value Market Value 5/31/2013

Fund Name

06/30/13 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains - Realized & Unrealized

Market Value 06/30/13

By Asset Class: Investment Pools Assets: * US Large Cap Active Pool US Large Cap Index Pool US Large Cap Enhanced Index Pool US Mid/Small Cap Pool Small/Mid Cap Index Pool Small/Mid Cap Enhanced Index Pool US Core Bonds Pool Credit & Structured Finance Non-US. Developed Markets Pool Non-US Emerging Markets Pool Absolute Return Pool Private Equity Pool Real Estate Pool Real Asset Pool Total Investment Pools

2,122,720,175 2,870,282,916 549,704,067 838,771,657 60,646,549 274,829,860 3,339,618,728 677,824,928 1,528,218,093 955,647,907 1,054,359,977 1,505,512,921 950,647,650 293,127,702 17,021,913,129

(8,045,000) (2,020,000) (8,180,099) (854,000) (1,358,000) (20,457,099)

(29,012,322) (142,000,000) (40,000,000) (110,000,000) (50,000,000) 10,000,000 100,000,000 (30,000,000) 30,000,000 150,000,000 (111,012,322)

(2,050,371) (121,900) (1,235,869) (1,650,338) (176,930) (315,074) (5,550,482)

2,712,093 (243) 710,915 519,332 (586,534) 828,153 11,079,545 2,576,956 2,172,509 4,122,482 749 1,499,112 4,527,420 734,364 30,896,853

(28,480,919) (36,913,478) (11,088,434) 4,301,792 (4,116,464) (94,470,235) 3,893,236 (56,372,831) (65,430,612) 12,628,345 45,818,561 15,032,542 1,038,007 (214,160,490)

2,065,888,656 2,683,202,295 499,326,548 730,336,912 60,060,015 271,541,549 3,196,397,601 694,295,120 1,472,986,841 892,666,703 1,166,989,071 1,522,830,594 1,000,207,612 444,900,073 16,701,629,589

Fund-Specific Assets: Land Grant Permanent Fund: ** Cash and accruals Severance Tax Permanent Fund: ** Cash and accruals Economically Targeted Investments (ETI's) Private Equity New Mexico Stock Distributions/Private Equity Tobacco Settlement Permanent Fund: ** Cash and accruals Water Fund ** Cash and accruals Grand Totals

55,799,346

47,155,504

(43,903,879)

25,762,322

(298,153)

7,251,681 54,497,546 206,878,519 2,736,681

(14,681,057)

40,000,000

(316,293)

1,390,146

(39,303,327)

19,392 17,350,486,440

1,384

3,390,241 (67,344) (3,317,172) (5,725)

545,309 47,994 2,355

45,000,000

84,516,524

(53,718) (1,691,364) 3,370

292

7,087,112

250,000 47,155,589

(118,345,362)

36,189,966 54,424,478 201,869,983 2,736,681

269,392 (6,164,928)

31,494,187

(215,902,202)

17,088,723,725

* Detail by investment manager presented on the following two pages. * Valuations for Private Equity, Real Estate and Real Assets are valued on a quarter lag. ** The assets listed for each permanent fund on the schedule include cash, accruals and ETI investments in the STPF. The permanent funds' investments in the equity, bond, and alternative pools are included in the pool totals along with all of the other investors and are specifically allocated to each investor on the succeeding pages of this report.

Board of Directors Regular Meeting

September 3, 2013

Change in Market Value Market Value 5/31/2013

Fund Name

06/30/13 Interfund Distributions Transfers

Contributions

Asset re-allocation

Fees

Securities Lend. Income

Income

Gains - Realized & Unrealized

Market Value 06/30/13

Investment Pools Detail by Manager (Benchmark): US Large Cap Active Pool: SIC Managed Large Cap Active (Russell 1000 Index) JP Morgan Asset Mgmt (Russell 1000 Growth Index) T. Rowe Price (Russell 1000 Growth Index) Brown Brothers Harriman (Russell 1000 Index) Wellington Mgmt Co. (Russell 1000 Value Index) Total externally managed US Large Cap Active funds Sub - Total US Large Cap Active Pool Management Fees Total US Large Cap Active Pool

14,012,440 485,895,695 251,713,549 560,808,497 812,340,376 2,110,758,117 2,124,770,557 (2,050,371) 2,122,720,187

US Large Cap Index Pool: SIC Managed Large Cap Index (S&P 500 Index) Northern Trust (Russell 1000 Index) Northern Trust Transition Account Sub -Total US Large Cap Index Pool Management Fees Total US Large Cap Index Pool

471,441 2,869,924,153 9,222 2,870,404,816 (121,900) 2,870,282,916

US Large Cap Enhanced Index Pool Pan Agora (Russell 1000 Index) Sub -Total Enhanced Index Pool Management Fees Total US Enhanced Index Pool

549,704,067 549,704,067 549,704,067

US Mid/Small Cap Pool: Blackrock (Russell Smallcap Index) Cortina (Russell Smallcap Growth Index) Donald Smith (Russell Smallcap Value Index) Seizert Partners (Russell Midcap Index) Sub-Total Mid/Small Cap Funds Management Fees Total Mid/Small Cap Pool

274,718,078 283,955,365 281,334,083 840,007,526 (1,235,869) 838,771,657

Small/Mid Cap Index Pool Northern Trust (Russell 2500 Index) Small/Mid Cap Enhanced Index Pool Blackrock (Russell 2000 Smallcap Index) Blackrock Transition Total US SMID Enhanced Index Pool

(14,012,322) 150,000,000 15,000,000 (30,000,000) (150,000,000) (15,000,000) (29,012,322)

(29,012,322)

(517,236) (216,543) (729,714) (586,878) (2,050,371) (2,050,371) (2,050,371)

(8,045,000)

(142,000,000)

(121,900)

(8,045,000)

(142,000,000)

(121,900)

(8,045,000)

(142,000,000)

(121,900)

2,712,093

(16,117,647) (2,376,748) (2,285,565) (7,700,959) (28,480,919) (28,480,919) (28,480,919)

(1,139) 741 155 (243)

(36,913,618) 140 (36,913,478)

(243)

(36,913,478)

(40,000,000) (40,000,000)

710,915 710,915

(11,088,434) (11,088,434)

(40,000,000)

710,915

(11,088,434)

6,810 124,276 388,246 519,332

11,647,582 (8,467,967) 1,122,177 4,301,792

519,332

4,301,792

(2,020,000) -

(2,020,000)

(55,000,000) (55,000,000) (110,000,000)

(2,020,000)

(110,000,000)

60,646,549

(421,023) (503,235) (311,611) (1,235,869) (1,235,869)

274,649,504 180,356 274,829,860

Total US Equities in Investment Pools

6,716,955,236

US Core Bonds Pool US Core Bonds Cash PIMCO Barclays (Universal Bond Index) Prudential Barclays Universal (Bond Index) Loomis Sayles Barclays (Universal Bond Index) Sub - Total Core Bonds Pool Management Fees Total US Core Bonds Pool

4,610,194 1,639,751,420 855,303,963 841,603,489 3,341,269,066 (1,650,338) 3,339,618,728

Board of Directors Regular Meeting

8 336,935 141,717 1,011,561 1,221,872 2,712,085 2,712,093

(10,065,000)

(3,737,099) (4,443,000)

148,692 (148,692) -

(586,534)

(321,012,322)

(3,408,140)

(879,641) (339,839) (430,858) (1,650,338) (1,650,338)

(8,180,099)

(27,000,000) (23,000,000) (50,000,000)

(8,180,099)

(50,000,000)

September 3, 2013

4,183,716

(76,297,503)

(42,432,925) (26,842,684) (25,194,626) (94,470,235) (94,470,235)

11,079,545

470,302 2,682,844,376 9,517 2,683,324,195 (121,900) 2,683,202,295

499,326,548 499,326,548 499,326,548

285,951,447 218,088,439 227,532,895 731,572,781 (1,235,869) 730,336,912

60,060,015

828,040 113 828,153

9 3,910,715 4,110,494 3,058,327 11,079,545

126 619,597,747 264,261,975 528,804,779 655,274,411 2,067,938,912 2,067,939,038 (2,050,371) 2,065,888,668

(4,116,600) 136 (4,116,464)

271,509,636 31,913 271,541,549 6,310,355,987

873,104 1,595,906,569 805,231,934 796,036,332 3,198,047,939 (1,650,338) 3,196,397,601

Change in Market Value Market Value 5/31/2013

Fund Name

06/30/13 Interfund Distributions Transfers

Contributions

Asset re-allocation

Fees

Securities Lend. Income

Gains - Realized & Unrealized

Income

Market Value 06/30/13

Investment Pools Detail by Manager (Benchmark) (continued): Credit & Structured Finance Cash Equity LP Interests Total CDO Equity Pool

44,540,778 633,284,152 677,824,929

Total Fixed Income in Investment Pools

4,017,443,657

Absolute Return Cash Account Austin Capital Crestline Enchantment Crestline Enchantment LLC Crestline Offshore Recovery Mariner Select LP Altair Stars LP Preferred LP AAM High Desert Total Hedge Funds

9,830,782 10,550,776 306,891,004 40,734,759 12,472,113 342,427,935 201,097 5,156,499 326,095,005 1,054,359,970

11,788,758,863

Total US Assets in Investment Pools Non-US Developed Markets Pool Alliance Bernstein (MSCI - EAFE Index) SIC Tax Reclaims Management Fees Total Non-US Developed Markets Pool Non-US Emerging Markets Pool Alliance Bernstein (MSCI Emerg Mkts Free Index) Management Fees Total Non-US Emerging Markets Pool Private Equity Pool National International Cash Stock Distributions Total Private Equity Pool

897,176,212 53,471,438 950,647,650

Real Asset Pool Real Assets Floating Rate Bank Loan Cash Account Total Real Asset Pool

146,475,572 99,677,182 46,974,948 293,127,702

Total Non-US Equities in Investment Pools

2,483,865,999

Total Internally Managed Assets

(40,000,000)

(1,650,338)

13,656,501

3,893,236 3,893,236 (90,576,999)

(154,246,157)

11,368,037,773

(17,208) 5,610,891

(18,245,099)

54,000,000 100,000,000 (261,012,322)

(854,000)

(1,358,000)

(5,058,478)

749

17,840,966

(176,930)

(315,074) (315,074)

(1,358,000) -

(23,403,404) (49,343) (6,934,566) 387,313 (30,000,000)

34,420,959 (4,420,959) 30,000,000

2,236,547 (64,038)

(56,373,212) 381

2,172,509

(56,372,831)

4,122,482

(65,430,612)

4,122,482

(65,430,612)

42,341,620 3,465,375

326,969 1,171,532 575 36 1,499,112

4,526,860 560 4,527,420

471,289 262,049 1,026 734,364

77,524,666

72,475,334 150,000,000

(2,212,000)

(492,004)

6,294,991

3,890,692,722

3,463,371 12,628,345

26 46,000,000

2,557,577 691,737,545 694,295,121

9,831,505 10,742,909 310,270,162 40,734,785 12,454,905 394,038,826 201,097 5,156,499 383,558,376 1,166,989,064

192,133 3,379,158

955,962,981 (315,074) 955,647,907

Real Estate Pool Real Estate Cash Account Total Real Estate Pool

(8,180,099)

159 2,576,797 2,576,956

723

1,527,758,400 636,622 (176,930) 1,528,218,092

1,209,337,026 191,221,654 91,762,697 13,191,544 1,505,512,921

(41,983,360) 51,983,360 10,000,000

11,566 45,818,561

15,032,542 15,032,542

1,748,457 (710,450) 1,038,007 (121,803,443)

1,472,590,805 572,965 (176,930) 1,472,986,840

892,981,777 (315,074) 892,666,703

1,228,602,211 195,809,218 84,828,706 13,590,459 1,522,830,594

951,156,573 49,051,039 1,000,207,612

226,219,984 99,228,781 119,451,308 444,900,073 2,365,653,543 -

Total Externally Managed Assets

17,021,913,134

(20,457,099)

(111,012,322)

(5,550,482)

30,896,853

(214,160,490)

16,701,629,594

Total Assets in Investment Pools

17,021,913,134

(20,457,099)

(111,012,322)

(5,550,482)

30,896,853

(214,160,490)

16,701,629,594

Board of Directors Regular Meeting

September 3, 2013

Change in Market Value Market Value 5/31/2013

Fund Name

06/30/13 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains - Realized & Unrealized

Market Value 06/30/13

Permanent Funds: Land Grant Permanent Fund: Cash and accruals Private Equity Pool Real Estate Pool Real Asset Pool Absolute Return Pool US Large Cap Active Pool US Large Cap Index Pool US Large Cap Enhanced Index Pool US Mid/Small Cap Pool Small/Mid Cap Index Pool Small/Mid Cap Enhanced Index Pool US Core Bonds Pool Credit & Structured Finance Non-US. Developed Markets Pool Non-US Emerging Markets Pool Total - Land Grant Permanent Fund Severance Tax Permanent Fund: Cash and accruals Economically Targeted Investments (ETI's) Private Equity New Mexico Private Equity Pool Stock Distributions/Private Equity Real Estate Pool Real Asset Pool Absolute Return Pool US Large Cap Active Pool US Large Cap Index Pool US Large Cap Enhanced Index Pool US Mid/Small Cap Pool Small/Mid Cap Index Pool Small/Mid Cap Enhanced Index Pool US Core Bonds Pool Credit & Structured Finance Non-US. Developed Markets Pool Non-US Emerging Markets Pool Total - Severance Tax Permanent Fund Tobacco Settlement Permanent Fund Cash and accruals Absolute Return Pool US Large Cap Active Pool US Large Cap Index Pool US Mid/Small Cap Pool Small/Mid Cap Index Pool US Core Bonds Pool Non-US. Developed Markets Pool Non-US Emerging Markets Pool Total - Tobacco Settlement Permanent Fund Water Permanent Fund Cash and accruals Absolute Return Pool US Large Cap Active Pool US Large Cap Index Pool US Mid/Small Cap Pool US Core Bonds Pool Non-US. Developed Markets Pool Non-US Emerging Markets Pool Total - Water Permanent Fund

55,799,332 1,149,317,568 697,899,848 236,129,986 782,779,488 1,533,743,806 1,974,390,980 422,798,790 534,481,924 48,929,638 221,748,610 2,314,752,993 532,555,799 1,076,297,834 680,857,479 12,262,484,075

47,155,504

(43,903,879)

7,251,713 54,497,546 206,878,519 356,195,354 2,736,680 252,747,803 56,997,715 251,051,535 495,502,644 633,158,189 126,905,279 220,054,830 11,716,912 53,081,249 724,470,244 145,267,650 379,011,494 229,237,946 4,206,763,302

85 -

(14,681,057) -

25,762,322 (20,000,000) 40,000,000 120,000,000 55,000,000 (14,012,322) (86,750,000) (40,000,000) (35,000,000) (15,000,000) (40,000,000) 10,000,000

40,000,000 (10,000,000)

(10,000,000) 30,000,000 45,000,000

(40,000,000)

(55,000,000)

(14,681,057)

1,390,059 15,863,202 10,427,109 108,354,251 16,095,423 48,180,503 8,441,547 3,328,086 212,080,180

(39,303,327)

19,392 4,666,856 4,834,759 15,333,495 6,325,939 11,474,650 3,455,772 1,228,801 47,339,664

Board of Directors Regular16,728,667,222 Meeting

Total Permanent Funds

(43,903,879)

(39,303,327)

45,000,000 (10,000,000) (25,000,000) (15,000,000) 15,000,000 (10,000,000) -

250,000 (5,000,000) 9,750,000 (5,000,000)

47,155,589

(97,888,263)

(298,153) (1,488,281) (84,589) (849,388) (1,144,044) (124,678) (224,796) (4,213,929)

1,384 1,147,380 3,406,710 590,189 544 1,968,590 (169) 533,913 356,926 (328,145) 668,202 7,680,538 2,032,705 1,530,916 2,941,269 22,530,952

35,068,285 11,311,413 834,219 9,165,044 (20,673,061) (25,615,171) (8,327,654) 2,956,535 (3,321,401) (65,488,448) 3,070,987 (39,724,617) (46,682,804) (147,426,673)

84,516,510 1,165,533,233 752,617,971 357,554,394 846,945,076 1,499,538,732 1,861,941,051 375,005,049 501,945,997 33,601,493 219,095,411 2,215,801,039 547,659,491 1,037,979,455 636,891,148 12,136,626,050

(53,718) (1,691,364) 10,750,276 3,370 3,721,129 203,788 3,238,708 (6,740,372) (8,049,117) (2,760,780) 976,993 (795,063) (20,856,972) 822,249 (13,988,774) (15,717,635) (50,937,282)

36,189,998 54,424,478 201,869,983 357,297,362 2,736,680 247,589,642 87,345,678 299,290,435 488,918,877 585,082,438 124,321,501 165,869,088 11,603,594 52,446,137 705,695,035 146,634,150 365,517,918 214,434,920 4,147,267,914

7,087,025 16,036,751 421,434 82,219,396 1,100,827 14,854,930 37,191,027 8,141,011 3,113,175 170,165,576

(316,293) -

3,390,241 (67,344) (3,317,172)

(485,246) (26,581) (280,682) (364,359) (43,905) (75,687) (1,592,753)

(5,725)

545,309 47,994 351,732 2,355 1,120,710 144,175 192 641,851 (53) 177,002 117,947 (113,318) 159,951 2,446,122 544,251 539,103 990,296 7,715,619

292 10 553 (7) 783 (145,070) 128,914 12,007 14,377 11,859

173,539 (5,810) (1,131,113) 6,484 (1,099,188) (311,565) (228,189) (2,595,842)

3 (214) (2) 948 38,743 4,915 5,308 49,701

51,054 2,248 (340,382) 7,849 (330,346) (127,548) (84,254) (821,379)

(418) (3,735) (1,863) (19,202) (978) (1,099) (27,295)

162 (1,124) (2,255) (5,771) (400) (406) (9,794)

(5,843,771) September 3, 2013

30,308,131

(201,781,176)

269,392 4,717,913 (163,045) 24,741,987 1,332,481 11,177,276 3,332,739 1,149,449 46,558,192

16,500,617,732

Change in Market Value Market Value 5/31/2013

Fund Name

06/30/13 Interfund Distributions Transfers

Contributions

Asset re-allocation

Fees

Securities Lend. Income

Income

Gains - Realized & Unrealized

Market Value 06/30/13

Third Party Investors: NMMI Trust Scholarship Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMMI Legislative Scholarship Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMMI Patterson Account Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMMI Capital Outlay Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMIMT Employee Benefit Trust Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool

NMIMT Plant/Debt/Allocated Fund Investment in US Core Bonds Pool

NMIMT Endowment Fund Investment in US Large Cap Index Pool Investment in US Core Bonds Pool

NM Tech Research Fund Investment in US Large Cap Index Pool Investment in US Core Bonds Pool

NM School for the Blind and Visually Impaired Investment in US Large Cap Active Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

2,104,673 661,907 1,753,938 662,309 123,147 5,305,974

3,738,032 1,129,024 3,117,581 957,451 476,727 9,418,815

1,764,762 532,864 1,469,026 554,293 121,989 4,442,934

382,676 115,807 322,969 121,910 26,509 969,871

(94) (1,126) (882) (77) (41) (2,220)

473 5,922 942 532 7,869

(28,560) 3,918 (50,496) (24,445) (8,443) (108,026)

2,076,019 665,172 1,708,482 638,729 115,195 5,203,597

(168) (1,920) (1,567) (136) (85) (3,876)

807 10,523 1,673 1,117 14,120

(50,736) 6,684 (89,727) (43,406) (17,726) (194,911)

3,687,128 1,134,595 3,036,810 915,582 460,033 9,234,148

(79) (906) (739) (64) (40) (1,828)

381 4,960 788 527 6,656

(23,948) 3,154 (42,291) (20,458) (8,364) (91,907)

1,740,735 535,493 1,430,956 534,559 114,112 4,355,855

(17) (197) (162) (14) (9) (399)

83 1,090 173 115 1,461

(5,193) 686 (9,298) (4,500) (1,818) (20,123)

377,466 116,379 314,599 117,569 24,797 950,810

85 945 127 1,157

(7,498) 704 (8,057) (3,286) (18,137)

545,038 119,450 272,604 85,874 1,022,966

552,561 118,863 279,857 89,043 1,040,324

(25) (202) (141) (10) (378)

13,709,796 13,709,796

(6,895) (6,895)

46,290 46,290

(394,695) (394,695)

13,354,496 13,354,496

14,145,210 11,441,841 25,587,051

(634) (5,754) (6,388)

(1) 38,633 38,632

(191,950) (329,402) (521,352)

13,952,625 11,145,318 25,097,943

13,339,176 3,713,875 17,053,051

(598) (1,264) (1,862)

(1) 8,488 8,487

(181,012) (72,373) (253,385)

13,157,565 2,448,726 15,606,291

(821) (1,618) (2,469) (87) (275) (5,270)

(11,401) 5,634 (141,359) (27,728) (57,024) (231,878)

826,941 956,484 4,782,873 724,517 777,981 8,068,796

838,077 951,788 4,910,122 751,263 831,687 8,282,937

Board of Directors Regular Meeting

(1,200,000) (1,200,000)

September 3, 2013

1,086 680 16,579 1,069 3,593 23,007

Change in Market Value Market Value 5/31/2013

Fund Name NM Retiree Health Care Authority Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NM Comm. of Public Lands-O&G Investment in US Large Cap Index Pool Investment in US Large Cap Active Pool Investment in US Core Bonds Pool

NM Game and Fish Department Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

Eastern NM University Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

ISC-Improvement to the Rio Grande Investment in US Large Cap Active Pool Investment in US Core Bonds Pool

ISC-Irrigation Works Construction Investment in US Large Cap Active Pool Investment in US Core Bonds Pool

PRC Patients' Comp Fund Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

LACCIPPERMANENT Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

LACCCEMETERY Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

06/30/13 Interfund Distributions Transfers

Contributions

39,691,193 39,037,194 30,908,646 96,779,201 41,700,671 31,370,826 279,487,731

2,945,960 3,133,638 5,756,656 11,836,254

366,096 125,256 357,108 60,674 49,858 958,992

Asset re-allocation

Fees

Securities Lend. Income

Income

(38,870) (1,749) (52,561) (48,673) (4,831) (10,358) (157,042)

(132) (3,069) (2,895) (6,096)

(16) (213) (180) (7) (16) (432)

(200) (2,296) (1,058) (96) (25) (3,675)

51,414 (3) 22,087 326,767 59,315 135,520 595,100

Gains - Realized & Unrealized

Market Value 06/30/13

(539,923) (529,732) 182,955 (2,786,195) (1,539,113) (2,150,930) (7,362,938)

39,163,814 38,505,710 31,061,127 94,271,100 40,216,042 29,345,058 272,562,851

4,059 19,437 23,496

(39,977) (42,627) (165,730) (248,334)

2,905,851 3,092,001 5,607,468 11,605,320

90 1,206 86 215 1,597

(4,968) 741 (10,280) (2,239) (3,418) (20,164)

361,112 125,874 347,854 58,514 46,639 939,993

965 7,104 1,179 329 9,577

(60,419) 7,991 (60,574) (30,585) (5,220) (148,807)

4,391,811 1,356,604 2,049,517 799,173 71,230 8,668,335

4,452,430 1,349,944 2,104,045 828,675 76,146 8,811,240

725,389 745,913 1,471,302

(710) (375) (1,085)

940 2,519 3,459

(9,868) (21,474) (31,342)

715,751 726,583 1,442,334

11,082,168 7,806,999 18,889,167

(10,853) (3,926) (14,779)

14,355 26,360 40,715

(150,752) (224,758) (375,510)

10,934,918 7,604,675 18,539,593

(366) (3,903) (13,242) (307) (728) (18,546)

(1) 1,640 88,903 3,774 9,521 103,837

(110,909) 13,585 (758,032) (97,926) (151,117) (1,104,399)

8,061,851 2,306,340 25,648,037 2,558,761 2,061,676 40,636,665

(6,089) (291) (8,871) (2,043) (404) (399) (18,097)

8,054 (1) 3,728 13,715 4,955 5,215 35,666

(84,574) (88,180) 30,879 (116,945) (128,567) (82,769) (470,156)

6,134,661 6,405,616 5,242,499 3,956,809 3,359,396 1,129,241 26,228,222

(186) (9) (271) (62) (12) (12) (552)

246 114 416 149 161 1,086

(2,580) (2,681) 945 (3,546) (3,877) (2,557) (14,296)

187,175 194,812 160,395 119,793 101,298 34,898 798,370

8,173,127 2,295,018 26,330,408 2,653,220 2,204,000 41,655,773

6,217,270 6,494,088 5,216,763 4,062,082 3,483,412 1,207,194 26,680,809

189,695 197,502 159,607 122,985 105,038 37,306 812,132

Board of Directors Regular Meeting

September 3, 2013 -

Change in Market Value Market Value 5/31/2013

Fund Name LACGENFUN Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMPSIA - Benefits Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMPSIA - Risk Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMHU Endowment Fund Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

Springer School District Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMMFA General Fund Investment in US Large Cap Index Pool Investment in US Core Bonds Pool

NMMFA IFT Housing Trust Fund Investment in US Core Bonds Pool

NMMI LFC/VC Maint. Endowment Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

CYFD Trust Fund Non-Expendable Investment in US Large Cap Active Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

3,158,875 3,362,668 2,786,348 2,198,826 2,390,796 619,155 14,516,669

11,893,972 3,038,239 8,505,223 1,246,621 1,890,157 26,574,212

7,929,265 2,025,477 5,670,236 831,088 1,260,084 17,716,150

1,346,047 389,445 961,740 195,000 112,468 3,004,700

44,114 33,852 24,724 36,164 34,941 173,795

06/30/13 Interfund Distributions Transfers

Contributions

(5,935,000) (1,490,000) (4,443,000) (630,000) (1,002,000) (13,500,000)

(2,110,000) (530,000) (1,580,000) (224,000) (356,000) (4,800,000)

Asset re-allocation

Fees

Securities Lend. Income

Income

(3,093) (151) (4,738) (1,106) (277) (204) (9,569)

(267) (2,633) (2,043) (71) (293) (5,307)

(261) (2,543) (2,057) (70) (298) (5,229)

(60) (662) (484) (23) (37) (1,266)

Gains - Realized & Unrealized

Market Value 06/30/13

4,092 1,991 7,424 3,401 2,674 19,582

(42,970) (45,669) 16,493 (63,302) (88,240) (42,448) (266,136)

3,116,904 3,316,848 2,800,094 2,141,842 2,305,680 579,177 14,260,546

(1) 1,106 13,716 877 3,837 19,535

(80,863) 9,164 (116,948) (22,758) (60,898) (272,303)

5,877,841 1,555,876 3,956,948 594,669 830,803 12,816,137

(1) 1,069 13,810 864 3,906 19,648

(78,967) 8,852 (117,755) (22,407) (61,988) (272,265)

5,740,036 1,502,855 3,984,234 585,475 845,704 12,658,304

278 3,248 277 487 4,290

(18,266) 2,305 (27,691) (7,197) (7,722) (58,571)

1,327,721 391,366 936,813 188,057 105,196 2,949,153

24 83 51 152 310

(599) 200 (712) (1,329) (2,407) (4,847)

43,513 34,018 24,083 34,882 32,674 169,170

(2) (58) (12) (4) (12) (88)

4,552,195 19,615,042 24,167,237

(204) (9,865) (10,069)

66,229 66,229

(61,773) (564,703) (626,476)

4,490,218 19,106,703 23,596,921

10,536,789 10,536,789

(4,818) (4,818)

32,345 32,345

(275,795) (275,795)

9,331,422 9,331,422

(91) (1,043) (851) (74) (46) (2,105)

438 5,712 908 607 7,665

(27,578) 3,632 (48,700) (23,561) (9,631) (105,838)

2,005,451 616,815 1,646,997 615,952 131,466 5,016,681

(201) (561) (6) (4) (772)

266 3,769 71 48 4,154

(2,789) (32,139) (1,844) (770) (37,542)

202,275 1,087,423 48,171 10,496 1,348,365

2,033,120 613,788 1,690,836 638,679 140,536 5,116,959

204,999 1,116,354 49,950 11,222 1,382,525

Board of Directors Regular Meeting

(957,099) (957,099)

September 3, 2013

Change in Market Value Market Value 5/31/2013

Fund Name CYFD Next Generation Fund Investment in US Large Cap Active Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NM Higher Education Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

City of Las Cruces Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in Non-US Developed Markets Pool

Total Third Party Investors Grand Total

204,999 1,116,354 49,950 11,222 1,382,525

6,906,997 7,059,557 3,874,240 4,521,357 1,311,569 608,359 24,282,079

5,858,543 3,126,095 5,486,725 2,075,606 16,546,969 621,821,652 17,350,486,440

Board of Directors Regular Meeting

06/30/13 Interfund Distributions Transfers

Contributions

(20,457,099)

47,155,589

(118,345,362)

Asset re-allocation

Fees

Securities Lend. Income

Income

Gains - Realized & Unrealized

Market Value 06/30/13

(201) (561) (6) (4) (772)

266 3,769 71 48 4,154

(2,789) (32,139) (1,844) (770) (37,542)

202,275 1,087,423 48,171 10,496 1,348,365

(6,764) (316) (6,588) (2,274) (152) (201) (16,295)

8,947 (1) 2,769 15,266 1,866 2,628 31,475

(93,957) (95,798) 22,932 (130,165) (48,408) (41,711) (387,107)

6,815,223 6,963,442 3,893,353 4,404,184 1,264,875 569,075 23,910,152

(5,737) (140) (9,330) (240) (15,447)

7,589 3,921 2,952 14,462

(79,694) (42,421) 32,477 (76,608) (166,246)

5,780,701 3,083,534 5,513,793 2,001,710 16,379,738

(321,157)

1,186,061

(14,121,028)

588,108,405

31,494,192

(215,902,204)

17,088,723,725

(6,164,928)

September 3, 2013

Change in Market Value Market Value 3/31/2013

Fund Name

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Asset re-allocation

Fees

Securities Lend. Income

Gains- Real. & Unreal.

Income

Market Value 6/30/13

By Asset Class Investment Pools Assets: * US Large Cap Active Pool US Large Cap Index Pool US Large Cap Enhanced Index Pool US Mid/Small Cap Pool Small/Mid Cap Index Pool Small/Mid Cap Enhanced Index Pool US Core Bonds Pool Credit & Structured Finance Non-US. Developed Markets Pool Non-US Emerging Markets Pool Absolute Return Pool Private Equity Pool Real Estate Pool Real Asset Pool Total Investment Pools

2,528,750,475 2,374,081,237 530,386,565 792,776,192 58,694,861 264,356,927 3,360,180,508 667,367,654 1,486,874,700 974,751,225 1,034,725,711 1,597,885,903 925,841,890 93,639,960 16,690,313,807

818,000 818,000 664,000 2,810,069 983,000 979,000 7,072,069

(2,100,000) (10,145,000) (3,027,750) (12,017,098) (1,054,000) (1,658,000) (30,001,848)

(514,012,322) 243,000,000 (40,000,000) (110,000,000) (50,000,000) 3,298,948 100,000,000 (122,000,000) 30,000,000 346,701,052 (113,012,322)

(4,100,742) (243,800) (2,471,738) (3,300,676) (353,860) (630,148) (11,100,964)

8,848,912 4,210 2,443,811 1,338,754 (586,534) 1,483,728 31,484,804 10,305,497 17,653,950 9,197,086 770 9,092,394 10,202,667 1,142,204 102,612,253

47,684,341 75,687,648 6,496,172 51,057,454 1,951,688 5,700,894 (132,760,006) 13,323,021 (31,116,949) (89,972,460) 32,262,586 37,852,297 34,163,055 3,416,857 55,746,598

2,065,888,660 2,683,202,295 499,326,548 730,336,912 60,060,015 271,541,549 3,196,397,601 694,295,120 1,472,986,841 892,666,703 1,166,989,067 1,522,830,594 1,000,207,612 444,900,073 16,701,629,589

77,733,572

132,127,843

(131,711,637)

10,762,322

(4,398,153)

2,577

85 -

(44,043,171) -

95,000,000 -

(1,816,293) -

568,573 61,896 2,355

(39,303,327)

7,000,000

411

7,087,112

250,000

269,392

103,248,065

52,819,247

17,088,723,725

(10,314,153) 54,615,543 203,875,583 198,041

Tobacco Settlement Permanent Fund: ** Cash and accruals

86,700

39,303,327

Water Fund Cash and accruals

19,392

17,016,528,485

178,503,324

Grand Totals

(245,059,983)

(3,205,075) (136,419) 808,579 2,532,915

(17,315,410)

(116,542) (2,814,179) 3,370

84,516,524

36,189,966 54,424,478 201,869,983 2,736,681

Board of Directors Regular Meeting

September 3, 2013

Change in Market Value Market Value 3/31/2013

Fund Name

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Asset re-allocation

Fees

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

499,549,438 463,621,821 238,436,269 545,024,707 782,118,243 2,029,201,040 2,528,750,478 0 2,528,750,479

812,500 5,500 5,500 818,000 818,000

(1,350,000) (750,000) (750,000) (2,100,000) (2,100,000)

(499,012,322) 150,000,000 15,000,000 (30,000,000) (150,000,000) (15,000,000) (514,012,322) (514,012,322)

386,607 2,373,684,532 10,098 2,374,081,237 2,374,081,237

818,000 818,000 818,000

(10,145,000) (10,145,000) (10,145,000)

243,000,000 243,000,000 243,000,000

US Large Cap Enhanced Index Pool Pan Agora (Russell 1000 Index) Sub -Total Enhanced Index Pool Management Fees Total US Enhanced Index Pool

530,386,565 530,386,565 530,386,565

260,327,421 270,146,919 262,301,852 792,776,192 792,776,192

664,000 664,000 664,000

58,694,861

264,175,637 181,290 264,356,927

Total US Equities in Investment Pools

6,549,046,261

2,300,000

US Core Bonds Pool US Core Bonds Cash PIMCO Barclays (Universal Bond Index) Prudential Barclays (Universal Bond Index) Loomis Sayles Barclays (Universal Bond Index) Sub - Total Core Bonds Pool Management Fees Total US Core Bonds Pool

5,637,058 1,650,425,022 856,732,368 847,386,060 3,360,180,508 3,360,180,508

2,810,069 2,810,069 2,810,069

Small/Mid Cap Index Pool Northern Trust (Russell 2500 Index) Small/Mid Cap Enhanced Index Pool Blackrock (Russell 2000 Smallcap Index) Blackrock Transition Total US SMID Enhanced Index Pool

Board of Directors Regular Meeting

(3,027,750) (3,027,750) (3,027,750)

(15,272,750) (7,574,098) (4,443,000) (12,017,098) (12,017,098)

(40,000,000) (40,000,000) (40,000,000)

(55,000,000) (55,000,000) (110,000,000) (110,000,000)

148,692 (148,692) (421,012,322) (27,000,000) (23,000,000) (50,000,000) (50,000,000)

(517,236) (216,543) (729,714) (586,878) (2,050,371) (2,050,371) (2,050,371) (4,100,742)

(121,900) (121,900) (121,900) (243,800)

(421,023) (503,235) (311,611) (1,235,869) (1,235,869) (2,471,738)

(6,816,280) (879,641) (339,839) (430,858) (1,650,338) (1,650,338) (3,300,676)

September 3, 2013

510 1,179,719 385,770 2,351,506 4,931,407 8,848,402 8,848,912 8,848,912

6,057,943 10,656,479 12,158,280 18,811,639 47,684,341 47,684,341 47,684,341

126 619,597,747 264,261,975 528,804,779 655,274,411 2,067,938,912 2,067,939,038 (2,050,371) 2,065,888,668

84,469 75,604,229 (1,050) 75,687,648 75,687,648

470,302 2,682,844,376 9,517 2,683,324,195 (121,900) 2,683,202,295

2,443,811 2,443,811 2,443,811

6,496,172 6,496,172 6,496,172

499,326,548 499,326,548 499,326,548

22,661 431,891 884,202 1,338,754 1,338,754

26,022,388 5,376,614 19,658,452 51,057,454 51,057,454

285,951,447 218,088,439 227,532,895 731,572,781 (1,235,869) 730,336,912

1,951,688

60,060,015

(774) 4,515 469 4,210 4,210

(586,534)

1,483,610 118 1,483,728 13,532,881 75 11,687,729 10,511,551 9,285,449 31,484,804 31,484,804

5,701,697 (803) 5,700,894 188,578,197 (60,883,541) (34,672,146) (37,204,319) (132,760,006) (132,760,006)

271,509,636 31,913 271,541,549 6,310,355,987 873,104 1,595,906,569 805,231,934 796,036,332 3,198,047,939 (1,650,338) 3,196,397,601

Change in Market Value Market Value 3/31/2013

Fund Name

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Asset re-allocation

Fees

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

Investment Pools Detail by Manager (Benchmark) (continued): Credit & Structured Finance Cash Equity LP Interests Total CDO Equity Pool

91,295,146 576,072,510 667,367,655

4,027,548,163

2,810,069

189,795 10,700,814 304,016,195 48,508,122 12,943,397 333,230,426 201,097 6,062,877 318,872,985 1,034,725,708

11,611,320,132

5,110,069

(27,289,848)

(367,713,374)

(10,116,956)

1,486,232,863 483,206 158,630 1,486,874,699

983,000 983,000

(1,054,000) (1,054,000)

158,630 (158,630) -

(176,930) (176,930) (353,860)

974,751,225 974,751,225

979,000 979,000

(1,658,000) (1,658,000)

(315,074) (315,074) (630,148)

1,250,242,405 195,185,183 140,769,573 11,688,742 1,597,885,903

(61,367,186) (5,855,644) (55,943,219) 1,166,049 (122,000,000)

854,923,493 70,918,397 925,841,890

78,601,036 15,038,924 93,639,960

2,461,625,924

1,962,000

(2,712,000)

499,549,438

812,500

(1,350,000)

(499,012,322)

Total Externally Managed Assets

16,190,764,369

6,259,569

(28,651,848)

386,000,000

Total Assets in Investment Pools

16,690,313,808

7,072,069

(30,001,848)

(113,012,322)

Total Fixed Income in Investment Pools Absolute Return Cash Account Austin Capital Crestline Enchantment Crestline Enchantment LLC Crestline Offshore Recovery Mariner Select LP Altair Stars LP CT Preferred LP AAM High Desert Total Hedge Funds Total US Assets in Investment Pools Non-US Developed Markets Pool Alliance Bernstein (MSCI - EAFE Index) SIC Tax Reclaims Simms Capital (MSCI - EAFE Index) Management Fees Total Non-US Developed Markets Pool Non-US Emerging Markets Pool Alliance Bernstein (MSCI Emerg Mkts Free Index) Non US SIC Managed Management Fees Total Non-US Emerging Markets Pool Private Equity Pool National International Cash Stock Distributions Total Private Equity Pool Real Estate Pool Real Estate Cash Account Total Real Estate Pool Real Asset Pool Real Assets Floating Rate Bank Loan Cash Account Total Real Asset Pool Total Non-US Equities in Investment Pools Total Internally Managed Assets

Board of Directors Regular Meeting

(12,017,098)

(88,738,739) 92,037,687 3,298,948

1,170 10,304,327 10,305,497

13,323,021 13,323,021

41,790,301

(119,436,985)

3,890,692,722

744 26 770

42,095 6,253,967 137,637 248,474 14,808,400 86,622 10,685,391 32,262,586

9,831,505 10,742,909 310,270,162 40,734,785 12,454,905 394,038,826 201,097 5,156,499 383,558,376 1,166,989,064

55,323,952

101,403,798

11,368,037,773

17,722,988 (69,038) 17,653,950

(31,117,116) 167 (31,116,949)

1,472,590,805 572,965 (0) (176,930) 1,472,986,840

9,197,086 9,197,086

(89,972,460) (89,972,460)

892,981,777 (315,074) 892,666,703

7,569,267 1,518,827 2,352 1,948 9,092,394

32,157,725 4,960,852 733,720 37,852,297

1,228,602,211 195,809,218 84,828,706 13,590,459 1,522,830,594

51,868,885 (21,868,885) 30,000,000

10,201,140 1,527 10,202,667

34,163,055 34,163,055

951,156,573 49,051,039 1,000,207,612

142,291,118 100,000,000 104,409,934 346,701,052

874,929 264,825 2,450 1,142,204

4,452,901 (1,036,044) 3,416,857

226,219,984 99,228,781 119,451,308 444,900,073

26,851,036

(121,089,409)

2,365,653,543

510

126

(11,100,964)

102,611,743

55,746,598

16,701,629,467

(11,100,964)

102,612,253

55,746,598

16,701,629,594

(46,701,052)

9,640,966 (7,911,000) (736,966) 46,000,000 (993,000) 54,000,000 100,000,000

(3,300,676)

(984,008) -

September 3, 2013

2,557,577 691,737,545 694,295,121

Change in Market Value Market Value 3/31/2013

Fund Name

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

77,733,558 1,189,617,258 679,689,171 70,229,971 768,202,602 1,736,453,918 1,730,508,052 427,940,948 504,954,138 47,355,016 213,298,442 2,328,278,413 512,831,562 1,047,704,637 694,948,074 12,029,745,760

(10,314,121) 54,615,543 203,875,583 408,268,646 198,040 246,152,720 23,409,988 246,376,469 647,029,892 481,204,859 102,445,619 207,897,762 11,339,846 51,058,484 728,703,425 154,534,613 368,942,579 233,982,109 4,159,722,056

86,700 15,567,798 49,344,691 27,498,580 15,206,221 48,462,029 8,217,287 3,396,961 167,780,267

19,392 4,579,950 19,393,902 5,976,458 11,541,697 3,363,966 1,254,231 46,129,596

132,127,843 132,127,843

(131,711,637) (131,711,637)

10,762,322 (60,000,000) 40,000,000 283,569,088 55,000,000 (274,012,322) 78,250,000 (60,000,000) (35,000,000) (15,000,000) (40,000,000) 16,430,912 -

(4,398,153) (2,969,752) (168,441) (1,636,908) (2,287,924) (249,287) (449,273) (12,159,738)

85 85

(44,043,171) (44,043,171)

95,000,000 (62,000,000) (10,000,000) 63,131,964 45,000,000 (170,000,000) 87,000,000 20,000,000 (55,000,000) (13,131,964) -

(1,816,293) (963,860) (53,471) (604,917) (722,370) (87,785) (151,266) (4,399,962)

39,303,327 39,303,327

(39,303,327) (39,303,327)

7,000,000 (50,000,000) 53,000,000 (15,000,000) 15,000,000 (10,000,000) -

(10,490) (8,337) (25,578) (43,011) (1,955) (2,196) (91,567)

250,000 (20,000,000) 24,750,000 (5,000,000) -

(4,508) (1,775) (11,576) (11,441) (800) (811) (30,911)

16,403,377,680 Board of Directors Regular Meeting171,431,255

Total Permanent Funds

(215,058,135)

2,577 6,923,146 7,573,085 918,750 560 6,358,855 2,894 1,866,751 879,045 (328,145) 1,197,158 21,827,020 8,070,977 12,436,511 6,557,936 74,287,120

28,992,829 25,355,715 2,836,585 23,741,914 33,708,033 53,348,546 5,197,350 32,749,722 1,574,622 4,599,811 (92,016,470) 10,326,040 (21,912,406) (64,165,589) 44,336,702

568,573 61,896 2,169,248 2,355 2,629,582 223,454 197 2,057,949 929 577,060 332,912 (113,318) 286,570 6,873,684 2,234,520 4,379,440 2,207,992 24,493,043

(116,542) (2,814,179) 8,859,468 3,370 8,807,340 580,272 7,913,769 10,794,896 16,930,121 1,298,822 13,243,331 377,066 1,101,083 (29,159,704) 2,996,981 (7,716,316) (21,603,915) 11,495,863

324 10 74,088 161 16,506 (145,070) 423,366 97,541 32,056 498,982

468,943 1,013,145 1,728,992 903,678 (1,651,357) (171,862) (313,646) 1,977,893

7,087,024 16,036,751 421,434 82,219,396 1,100,827 14,854,930 37,191,027 8,141,011 3,113,175 170,165,575

3 30,034 22 7,128 108,870 39,930 11,836 197,823

99,476,968

(3,205,075) (136,419) 808,579 2,532,915 -

(16,682,178) September 3, 2013

137,960 417,527 (6,260) 360,471 (461,850) (70,357) (115,807) 261,684 58,072,142

269,392 4,717,913 (163,045) 24,741,987 1,332,481 11,177,276 3,332,739 1,149,449 46,558,192

16,500,617,732

Change in Market Value Market Value 3/31/2013

Fund Name

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

NMIMT Employee Benefit Trust Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool

NMIMT Plant/Debt/Allocated Fund Investment in US Core Bonds Pool

NMIMT Endowment Fund Investment in US Large Cap Index Pool Investment in US Core Bonds Pool

NM Tech Research Fund Investment in US Large Cap Index Pool Investment in US Core Bonds Pool

2,022,200 625,340 1,764,186 644,714 125,696 5,182,136

(183) (2,101) (1,749) (154) (82) (4,269)

3 1,119 16,642 7,653 1,186 26,603

53,999 40,814 (70,597) (13,484) (11,605) (873)

2,076,019 665,172 1,708,482 638,729 115,195 5,203,597

3,591,524 1,066,640 3,135,792 926,209 482,076 9,202,241

(327) (3,584) (3,107) (272) (170) (7,460)

6 1,910 29,570 13,589 2,491 47,566

95,925 69,629 (125,445) (23,944) (24,364) (8,199)

3,687,128 1,134,595 3,036,810 915,582 460,033 9,234,148

1,695,608 503,425 1,477,610 539,567 124,514 4,340,724

(154) (1,691) (1,465) (128) (80) (3,518)

3 901 13,937 6,404 1,175 22,420

45,278 32,858 (59,126) (11,284) (11,497) (3,771)

1,740,735 535,493 1,430,956 534,559 114,112 4,355,855

367,681 109,409 324,857 118,671 27,058 947,676

(33) (368) (322) (28) (18) (769)

1 196 3,063 1,408 256 4,924

9,817 7,142 (12,999) (2,482) (2,499) (1,021)

377,466 116,379 314,599 117,569 24,797 950,810

530,908 112,295 281,492 86,677 1,011,372

(48) (377) (279) (20) (724)

1 202 2,655 1,029 3,887

14,177 7,330 (11,264) (1,812) 8,431

545,038 119,450 272,604 85,874 1,022,966

13,789,905 13,789,905

(13,670) (13,670)

130,076 130,076

(551,815) (551,815)

13,354,496 13,354,496

13,590,920 11,508,697 25,099,617

(1,235) (11,408) (12,643)

21 108,559 108,580

362,919 (460,530) (97,611)

13,952,625 11,145,318 25,097,943

12,816,471 3,735,576 16,552,047

(1,165) (3,099) (4,264)

20 31,185 31,205

342,239 (114,936) 227,303

13,157,565 2,448,726 15,606,291

806,396 899,208 4,938,812 731,305 848,899 8,224,620

(1,631) (3,020) (4,895) (174) (549) (10,269)

3,509 1,610 46,587 8,681 8,011 68,398

18,667 58,686 (197,631) (15,295) (78,380) (213,953)

826,941 956,484 4,782,873 724,517 777,981 8,068,796

Board of Directors Regular Meeting

(1,200,000) (1,200,000)

September 3, 2013

Change in Market Value Market Value 3/31/2013

NM Comm. of Public Lands-O&G Investment in US Large Cap Index Pool Investment in US Large Cap Active Pool Investment in US Core Bonds Pool

ISC-Improvement to the Rio Grande Investment in US Large Cap Active Pool Investment in US Core Bonds Pool

ISC-Irrigation Works Construction Investment in US Large Cap Active Pool Investment in US Core Bonds Pool

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

37,392,277 36,709,477 28,552,452 95,101,817 39,666,443 31,052,044 268,474,510

812,500 812,500 650,000 2,275,000 975,000 975,000 6,500,000

(77,208) (3,407) (98,103) (96,498) (9,659) (20,701) (305,576)

165,270 57 52,185 911,118 477,773 299,662 1,906,065

870,975 987,083 1,904,593 (3,920,337) (893,515) (2,960,947) (4,012,148)

39,163,814 38,505,710 31,061,127 94,271,100 40,216,042 29,345,058 272,562,851

2,830,519 3,015,182 5,790,294 11,635,995

(257) (6,096) (5,740) (12,093)

5 13,117 54,618 67,740

75,584 69,798 (231,704) (86,322)

2,905,851 3,092,001 5,607,468 11,605,320

351,751 118,337 359,194 59,062 50,889 939,233

(32) (398) (356) (14) (32) (832)

1 212 3,388 701 480 4,782

9,392 7,723 (14,372) (1,235) (4,698) (3,190)

361,112 125,874 347,854 58,514 46,639 939,993

4,277,958 1,275,365 2,116,339 806,660 77,723 8,554,045

(389) (4,285) (2,098) (192) (50) (7,014)

7 2,284 19,963 9,576 733 32,563

114,235 83,240 (84,687) (16,871) (7,176) 88,741

4,391,811 1,356,604 2,049,517 799,173 71,230 8,668,335

697,969 750,271 1,448,240

(1,411) (744) (2,155)

3,037 7,078 10,115

16,156 (30,022) (13,866)

715,751 726,583 1,442,334

10,663,242 7,852,617 18,515,859

(21,557) (7,784) (29,341)

46,391 74,072 120,463

246,842 (314,230) (67,388)

10,934,918 7,604,675 18,539,593

7,852,857 2,168,228 26,484,260 2,582,734 2,249,613 41,337,692

(713) (7,285) (26,254) (614) (1,455) (36,321)

12 3,882 249,820 30,657 21,229 305,600

209,695 141,515 (1,059,789) (54,016) (207,711) (970,306)

8,061,851 2,306,340 25,648,037 2,558,761 2,061,676 40,636,665

6,382,246 6,639,451 4,928,559 5,785,817 3,390,870 1,232,176 28,359,119

(12,094) (567) (16,558) (4,050) (807) (797) (34,873)

26,026 9 8,824 38,541 40,251 11,628 125,279

138,483 166,723 321,674 (163,499) (70,918) (113,766) 278,697

6,134,661 6,405,616 5,242,499 3,956,809 3,359,396 1,129,241 26,228,222

Board of Directors Regular Meeting

(400,000) (400,000) (1,700,000) (2,500,000)

September 3, 2013

Change in Market Value Market Value 3/31/2013

Fund Name LACCCEMETERY Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

LACGENFUN Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

NMMFA General Fund Investment in US Large Cap Index Pool Investment in US Core Bonds Pool

NMMFA IFT Housing Trust Fund Investment in US Core Bonds Pool

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

177,024 184,261 136,787 160,704 94,247 34,077 787,099

5,500 5,500 14,000 8,000 4,000 37,000

(37,000) (37,000)

(369) (17) (506) (123) (24) (24) (1,063)

794 270 1,169 1,214 359 3,806

4,226 5,068 9,844 (4,957) (2,139) (3,514) 8,528

187,175 194,812 160,395 119,793 101,298 34,898 798,370

4,716,235 4,906,727 3,630,300 4,300,378 2,517,311 929,818 21,000,770

(1,700,000) (1,700,000) (1,000,000) (2,099,999) (200,000) (300,000) (6,999,999)

(6,144) (294) (8,843) (2,193) (554) (408) (18,436)

14,688 5 4,860 23,361 28,462 6,731 78,107

92,125 110,410 173,777 (79,705) (39,539) (56,964) 200,104

3,116,904 3,316,848 2,800,094 2,141,842 2,305,680 579,177 14,260,546

11,427,898 2,870,389 8,554,920 1,213,504 1,929,275 25,995,986

(5,935,000) (1,490,000) (4,443,000) (630,000) (1,002,000) (13,500,000)

(772) (7,110) (6,246) (215) (916) (15,259)

17 4,074 65,695 13,508 13,877 97,171

385,698 178,523 (214,421) (2,128) (109,433) 238,239

5,877,841 1,555,876 3,956,948 594,669 830,803 12,816,137

7,618,552 1,913,578 5,703,367 809,008 1,286,162 17,330,667

(2,110,000) (530,000) (1,580,000) (224,000) (356,000) (4,800,000)

(598) (5,527) (4,859) (166) (713) (11,863)

11 3,047 48,464 9,285 10,599 71,406

232,071 121,757 (182,738) (8,652) (94,344) 68,094

5,740,036 1,502,855 3,984,234 585,475 845,704 12,658,304

1,293,301 367,930 967,360 189,820 114,798 2,933,209

(117) (1,236) (959) (46) (74) (2,432)

2 658 9,126 2,253 1,086 13,125

34,535 24,014 (38,714) (3,970) (10,614) 5,251

1,327,721 391,366 936,813 188,057 105,196 2,949,153

42,386 39,732 24,869 35,208 35,669 177,864

(4) (108) (24) (8) (24) (168)

57 234 416 338 1,045

1,131 2,087 (996) (734) (3,309) (1,821)

43,513 34,018 24,083 34,882 32,674 169,170

4,373,813 19,729,656 24,103,469

(397) (19,558) (19,955)

7 186,105 186,112

116,795 (789,500) (672,705)

4,490,218 19,106,703 23,596,921

10,063,451 10,063,451

535,069 535,069

(10,025) (10,025)

96,705 96,705

(396,679) (396,679)

9,331,422 9,331,422

Board of Directors Regular Meeting

(7,750) (7,750)

(957,099) (957,099)

September 3, 2013

Change in Market Value Market Value 3/31/2013

Fund Name NMMI LFC/VC Maint. Endowment Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

CYFD Trust Fund Non-Expendable Investment in US Large Cap Active Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

CYFD Next Generation Fund Investment in US Large Cap Active Pool Investment in US Core Bonds Pool Investment in Non-US Developed Markets Pool Investment in Non-US Emerging Markets Pool

City of Las Cruces Investment in US Large Cap Active Pool Investment in US Large Cap Index Pool Investment in US Mid/Small Cap Pool Investment in Non-US Developed Markets Pool

Total Third Party Investors Grand Total

For Quarter Ended June 30, 2013 Interfund Distributions Transfers

Contributions

Fees

Asset re-allocation

Securities Lend. Income

Income

Gains- Real. & Unreal.

Market Value 6/30/13

1,953,483 579,887 1,700,720 621,721 143,443 4,999,254

(177) (1,947) (1,687) (148) (92) (4,051)

3 1,038 16,050 7,376 1,353 25,820

52,142 37,837 (68,086) (12,997) (13,238) (4,342)

2,005,451 616,815 1,646,997 615,952 131,466 5,016,681

197,249 1,122,878 48,623 11,454 1,380,204

(399) (1,113) (12) (8) (1,532)

859 10,591 577 108 12,135

4,566 (44,933) (1,017) (1,058) (42,442)

202,275 1,087,423 48,171 10,496 1,348,365

197,249 1,122,878 48,623 11,454 1,380,204

(399) (1,113) (12) (8) (1,532)

859 10,591 577 108 12,135

4,566 (44,933) (1,017) (1,058) (42,442)

202,275 1,087,423 48,171 10,496 1,348,365

6,645,901 6,782,924 3,660,205 4,547,776 1,276,726 620,949 23,534,481

(13,436) (616) (12,296) (4,508) (304) (402) (31,562)

28,914 10 6,554 42,897 15,155 5,860 99,390

153,844 181,124 238,890 (181,981) (26,702) (57,332) 307,843

6,815,223 6,963,442 3,893,353 4,404,184 1,264,875 569,075 23,910,152

5,637,080 3,003,596 5,183,607 2,020,464 15,844,747

(11,396) (273) (17,414) (480) (29,563)

24,524 5 9,281 23,983 57,793

130,493 80,206 338,319 (42,257) 506,761

5,780,701 3,083,534 5,513,793 2,001,710 16,379,738

613,153,341

7,072,069

(30,001,848)

(633,232)

3,771,016

(5,252,902)

588,108,405

17,016,528,485

178,503,324

(245,059,983)

Board of Directors Regular Meeting

(17,315,410)

September 3, 2013

103,247,984

52,819,240

17,088,723,725

Investment Holdings Report Notes to Report June 30, 2013 Page eight reflects the summary of activity in the State Investment Council’s portfolio for the month ended June 30, 2013. Items to note:  The monthly contribution from the State Land Office was $47,155,504; an increase of $4,429,945 compared to May.  The Severance Tax Bonding fund provided a distribution of $85; the total for FY13 was $339.00. The distribution received in FY12 was $103,888,028.  The distribution from the Tobacco Settlement Permanent Fund was $39,303,327 which was the entire contribution for FY13.  The monthly beneficiary distributions of $ 43,903,879 and $14,681,057 from the permanent funds are reflected for LGPF and STPF, respectively.  

Third party client activity included redemptions of $20,257,099 and is accounted on pages 12 thru 15. The Absolute Return Pool funded $100,000,000; $46,000,000 to Mariner and $54,000,000 to AAM High Desert on page 10.



The management fee accrual for the fourth quarter is reflected in the respective pools on pages 9 & 10.



The total on page ten reflects only the investment pools included on page eight as a sub‐total.



The total on page eleven is inclusive of the permanent funds and exclusive of the third party investors.

Board of Directors Regular Meeting

September 3, 2013

92 24

2013 Switch Meeting Schedule October 11, 2013

October 14 & Nov. 1, 2013

October 15, 2013

October 16 & 25, 2013

Raton Convention Center

UNM Continuing Ed. Auditorium

Destiny Center Church Auditorium

Santa FE CC Jemez Room

1634 University Blvd., NE Albuquerque, NM 87131

4401 Northern Blvd., NE Rio Rancho, NM 87124

6401 Richards Ave. Santa Fe, NM 87508

9:30 a.m. – 10:30 a.m. Medicare Medical/RX 10:45 a.m. – 11:45 a.m. Voluntary Coverage 12:00 p.m. – 1:00 p.m. Non-Medicare Medical/RX

October 17, 2013

October 18, 2013

October 21, 2013

October 22, 2013

Red Rock State Park Dining & Conference Room

Northern NM College Nick L. Salazar Center for Performing Arts

Farmington Civic Center Miriam Taylor Theatre

WNMU – Silver City Besse-Forward Global Resource Center

901 S 3rd St Raton, NM 87740

10:30 a.m. – 11:30 a.m. Medicare Medical/RX 11:45 a.m. – 12:45 a.m. Voluntary Coverage 1:00 p.m. – 2:00 p.m. Non-Medicare Medical/RX

Gallup, NM 87311

10:30 a.m. – 11:30 a.m. Medicare Medical/RX 11:45 a.m. – 12:45 a.m. Voluntary Coverage 1:00 p.m. – 2:00 p.m. Non-Medicare Medical/RX

921 Paseo de Onate Espanola, NM 87532

9:30 a.m. – 10:30 a.m. Medicare Medical/RX 10:45 a.m. – 11:45 a.m. Voluntary Coverage 12:00 p.m. – 1:00 p.m. Non-Medicare Medical/RX

200 West Arrington Farmington, NM 87401

10:30 a.m. – 11:30 a.m. Medicare Medical/RX 11:45 a.m. – 12:45 a.m. Voluntary Coverage 1:00 p.m. – 2:00 p.m. Non-Medicare Medical/RX

Corner of 12th and Kentucky Silver City, NM

1:30 p.m. – 2:30 p.m. Medicare Medical/RX 2:45 p.m. – 3:45 p.m. Voluntary Coverage 4:00 p.m. – 5:00 p.m. Non-Medicare Medical/RX

October 23 & 24, 2013

October 28, 2013

October 29, 2013

October 30, 2013

NM Farm & Ranch Heritage Museum

NMHU Ballroom 800 National Avenue

NM Military Institute Pearson Auditorium

NM Junior College

4100 Dripping Springs Rd. Las Cruces, NM 88005

(Corner of 8th and National) Las Vegas, NM 87701

9:30 a.m. – 10:30 a.m. Medicare Medical/RX 10:45 a.m. – 11:45 a.m. Voluntary Coverage 12:00 p.m. – 1:00 p.m. Non-Medicare Medical/RX

10:30 a.m. – 11:30 a.m. Medicare Medical/RX 11:45 a.m. – 12:45 a.m. Voluntary Coverage 1:00 p.m. – 2:00 p.m. Non-Medicare Medical/RX

October 31, 2013 Clovis Civic Center 801 Schepps Blvd Clovis, NM 88101 9:30 a.m. – 10:30 a.m. Medicare Medical/RX 10:45 a.m. – 11:45 a.m. Voluntary Coverage 12:00 p.m. – 1:00 p.m. Non-Medicare Medical/RX

101 West College Blvd Roswell, NM 88201

Training and Outreach Facility 5317 North Lovington Hwy Hobbs, NM 88240

1:30 p.m. – 2:30 p.m. Medicare Medical/RX 2:45 p.m. – 3:45 p.m. Voluntary Coverage 4:00 p.m. – 5:00 p.m. Non-Medicare Medical/RX

9:30 a.m. – 10:30 a.m. Medicare Medical/RX 10:45 a.m. – 11:45 a.m. Voluntary Coverage 12:00 p.m. – 1:00 p.m. Non-Medicare Medical/RX

Wellness Screenings Now Featured At All Switch Enrollment Meetings In an effort to help all of us stay healthier, the following may be offered to all attendees at no cost at all meeting locations:  Flu shots and other age‐appropriate immunizations (subject to serum availability)  Biometric screenings to make you aware of your health status may include the following:  Cholesterol level  Blood sugar level  Blood pressure  Body mass index  Health‐related materials and information Please plan on arriving either a little early or staying a little later to take advantage of these cost‐free services

DEADLINE FOR CHANGES MUST BE POSTMARKED NO LATER THAN NOVEMBER 12, 2013

Board of Directors Regular Meeting

September 3, 2013