Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: September 22, 2014 CITY HALL, ROOM 112 TIME: 10:06 A.M. Present: Gail Budrow-Bradstreet, Stan Chubinski, John Hausman, and Joe Newman Absent: Doug Bagwell Also Present: Jeremy Tollas of Plante Moran Financial Advisors (PMFA) Chair Newman asked for approval of the agenda. Motion Chubinski, seconded Hausman to approve the agenda. On a voice vote, motion carried. Minutes of the regular meeting of August 26, 2014 were presented. Motion Hausman, seconded Budrow-Bradstreet to approve the minutes as presented. On a voice vote, motion carried. A summary of assets prepared by Comerica Bank was presented. As of 8/31/14 the market value of our portfolio was $133,366,821, which is a gain of $1,421,157 since 7/31/2014. As of today the market value of our portfolio is $131,748,384, presently a loss of $1,618,437 since the 8/31/14 month end eroding the gains earned in August. Motion Hausman, seconded Chubinski to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – Budrow-Bradstreet: New hires: Police Dept – Carl Vandyke on 9/22/14; Thomas Burke on 9/28/14; Craig Kidney on 9/28/14; Emily Leach on 9/28/14; Alexander Barton on 9/29/14; Jed Reames on 9/29/14. Motion Budrow-Bradstreet, seconded Chubinski to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Ray A. Felix requesting an effective retirement date of 8/1/2014, and WHEREAS, Ray A. Felix is eligible for retirement based on his service credit pursuant to Act 345 of the Public Acts of 1937, as amended, and retirement provisions of the union contract, and WHEREAS, the final actuarial calculations have been received, therefore be it RESOLVED, that the application of Ray A. Felix for retirement is approved, and RESOLVED, the retirement benefit for Ray A. Felix shall commence as of 8/1/2014, and RESOLVED, the gross monthly benefit is $6,958.34 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $6,958.34 was paid on or about 9/15/14 and the regular gross monthly benefit shall begin 10/1/2014. On a voice vote, motion approved. Contacted legal counsel to review the FAC policy and propose any changes, if necessary. Chubinski – none. Police & Fire Pension Board September 22, 2014 Page 2 of 2 - Official Hausman – none. Newman – none. Old Business Disability Pension Application – received report from P&F Board’s appointed physician to conduct an independent medical examination. Still waiting on formal report from applicant’s physician. New Business Jeremy Tollas of PMFA gave the market update highlighting the following:  Stocks took a step back in July while fixed income markets were mixed. Since then equities have rebounded. The S&P 500 is up 9% year to date.  Inflation is edging higher; TIPS did better than some of the fixed income investments.  Second quarter GDP came in higher than anticipated. Personal spending was up in the same period. Consumer confidence is at its highest level since the 2009 correction.  Over 200,000 jobs were added in July yet unemployment went up slightly. Even with these numbers, employers are having tough time filling jobs – they find there are few or no qualified applicants.  The current bull market rally is 4th highest in terms of during since 1929 and far surpasses previous market rallies in terms of cumulative price returns. Volatility is relatively low. Tollas reviewed the P&F portfolio noting the following:  Will need to raise cash soon and will recommend a rebalancing in the process.  Overall portfolio slightly below benchmark as of 8/31/14; small cap value stocks did well; large cap all underperformed the benchmark for the same reasons as noted at the last meeting – stock selection.  As of September 10, 2014 the time weighted return for FY 2014-15 was 0.29%, annualized return 1.50%; the time weighted return for the calendar year is 5.0%, annualized return 7.30%. The FYTD return matched the benchmark of 0.29%; the CYTD return did not do as well as the 5.40% benchmark. Public Comment - None. Next regular meeting: Monday, October 20, 2014 at 10:00 a.m. Meeting adjourned at 11:10 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature