Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: May 18, 2015 CITY HALL, ROOM 112 TIME: 10:00 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski John Hausman and Joe Newman. Absent: None. Also Present: Jeremy Tollas and Tricia Newcomb of Plante Moran Financial Advisors (PMFA); Linda Morrison, Finance and Revenue Services Director. Chair Newman asked for approval of the agenda. Motion Hausman, seconded Bagwell to approve the agenda. On a voice vote, motion carried. Minutes of the regular meeting of April 20, 2015 were presented. Motion Hausman, seconded Chubinski to approve the minutes as presented. On a voice vote, motion carried. A summary of assets prepared by Comerica Bank was presented. As of 4/30/15 the market value of our portfolio was $134,493,382, a minimal loss of $10,556 since 3/31/15. As of today the market value of our portfolio is $134,485,595, presently another minimal loss of $7,787 since the 4/30/15 month end. Motion Hausman, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Budrow-Bradstreet also noted assets were liquidated to raise $2.5 million cash. Board Reports Bagwell – Scott Eager, Union President, wanted to know, for persons on disability retirement, when does the full retirement benefit start. The regular calculated disability retirement pension begins at age 55. Budrow-Bradstreet:  Lisetta Barney, surviving spouse of police retiree Clifford Barney, died 4/23/15. Final gross benefit was adjusted from $600 to $460.  Made phone contact with retiree Ed Jacobs regarding his repayment. He hired a local attorney; all future correspondence will be in writing.  Joe Newman’s term on the board due to expire 6/30/15; provided application for reappointment. Chubinski – none. Hausman – none. Newman – none. Old Business FAC Policy Review: A draft revision to the FAC policy was presented. There was much discussion on how to handle partial pay within a pay period. Board originally was going to establish the one-year period based on actual pay dates, regardless of actual last day worked. Determining the period of time gets difficult with breaks in service based on policy. City will Police & Fire Pension Board May 18, 2015 Page 2 of 2 - Official review the process to see if one year period can be based on actual date of retirement and breaks for actual days off. Chairman Newman requested we have a workshop at a future meeting to discuss further. New Business Tricia Newcomb from PMFA went over an asset allocation analysis per Board request. Risk and return assumptions with projected returns based on 50/50 allocation, 55% equity/45% fixed income, and 60% equity/40% fixed income. The range of equity to fixed income for most PMFA clients is 60/40 – 40/60. Battle Creek is within this range at 50/50. No changes made at this time. PMFA provided a written quarterly update. Jeremy Tollas gave the monthly update. The time weighted return [net of fees] is 2.49% as of 4/30/15. This is just slightly better than the benchmark. Tollas noted Boston company Large Cap Growth investment was for only ten (10) days in April. Lazard is up 6.77% but 2.39% less than its benchmark. The S&P 500 is up 400 to date. The market is rallying on the equity side. International equity looking more attractive than domestic going forward. The fiscal year to date time weighted return is 5%, annualized 5.87%; calendar year to date time weighted return is 3%, annualized 8.79%. The current allocation shows cash up a little since we just raised $2.5 million to cover upcoming liabilities. Public Comment – none. Next regular meeting: Tuesday, June 16, 2015 at 10:00 a.m. Meeting adjourned at 11:50 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature