Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: September 21, 2015 CITY HALL, ROOM 112 TIME: 10:07 A.M. Present: Douglas Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, John Hausman and Joe Newman. Absent: None. Also Present: Dori Drayton of Plante Moran Financial Advisors (PMFA); Linda Morrison, Finance and Revenue Services Director. 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 18, 2015 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 8/31/15 the market value of our portfolio was $128,952,357, a loss of $4,293,779 since 7/31/15. As of today the market value of our portfolio is $128,038,681, presently a loss of $913,676 since the 8/31/15 month end. Motion Hausman, seconded Chubinski to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell: none. Budrow-Bradstreet: Two retirements to approve – Howard Holt from February, 2015 and Patrick Johnson for August. Motion Hausman, seconded Bagwell to approve the following resolutions: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Howard Holt requesting an effective retirement date of 2/14/15, and WHEREAS, Howard Holt 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 Howard Holt for retirement is approved, and RESOLVED, the retirement benefit for Howard Holt shall commence as of 2/14/15, and RESOLVED, the gross monthly benefit is $5,997.44 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $3,212.91 was paid on or about 4/1/15 and the regular gross monthly benefit shall begin 4/1/2015. WHEREAS, the Board of Trustees is in receipt of an application for retirement from Patrick J Johnson requesting an effective retirement date of 8/20/15, and Police & Fire Pension Board September 21, 2015 Page 2 of 3 - Official WHEREAS, Patrick J Johnson 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 Patrick J Johnson for retirement is approved, and RESOLVED, the retirement benefit for Patrick J Johnson shall commence as of 8/20/15, and RESOLVED, the gross monthly benefit is $1,330.15 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross benefit payment of $471.98 was paid on or about 9/15/15 for the partial month of August and the regular gross monthly benefit shall begin 10/1/2015. On a voice vote, motion carried. Chubinski – none. Hausman – fire department working to hire five new employees. Newman – none. Old Business In response to Cody Titus’ inquiry regarding service credit for prior fire fighter service Trustee Hausman will go over the provisions will Mr. Titus. New Business Received a non-duty disability application for retirement from Jason Crape, fire fighter. Motion Budrow-Bradstreet, seconded by Bagwell to establish Medical Committee, recognizing Dr. Meyer of the VA Medical Center as the designated physician by Mr. Crape and appoint Dr. Kam R Tatineni, M.D. as the designated physician representing the Board pending acceptance by Dr. Tatineni. On a voice vote, motion carried. Motion Chubinski, seconded Hausman to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of Domestic Relations Order dated July 28, 2015, wherein Karen Louise Pope, the Alternate Payee, is awarded certain rights to the benefits of Thomas Gerald Pope, the Participant, and WHEREAS, the Alternate Payee is entitled to a portion of the Participant’s monthly retirement benefit from the Retirement System, and WHEREAS, said matter having been discussed with legal counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Retirement System and applicable law, therefore it be, RESOLVED, that the Board acknowledges receipt of said court order and will administer benefits consistent with said order as soon as administratively feasible, and further, RESOLVED, that a copy of this Resolution be immediately attached as the top sheet of the Participant’s pension file and other appropriate records be retained by the Retirement System relative to this matter, and further Police & Fire Pension Board September 21, 2015 Page 3 of 3 - Official RESOLVED, that copies of this resolution be sent to Thomas Gerald Pope, the participant; Steven E. Parks, Esq., attorney for the Participant; Karen Louise Pope, the Alternate Payee; and Lisa A. McNiff, Esq., attorney for the Alternate payee contingent upon payment of the fee for legal counsel review and certification. On a voice vote, motion carried. Portfolio Update: Dori Drayton of PMFA reviewed the monthly report noting the following market and portfolio points:  Markets have been volatile; the anticipated correction took place.  Provided chart showing the bull and bear markets over the last 60 years. Bull markets generally last 68 months; bear markets – 15 months; most of bear market occurred when in a recession. When bear market occurs outside of recession, the time frame is generally only 7 months.  Emerging markets under a lot of stress  Feds did nothing with interest rates at its last meeting, citing global concerns due to the value of the US dollar versus foreign currency.  No time to panic because the fundamentals of the US economy are good.  Fixed income – indices are negative year to date.  Equities down across the board for every index. Emerging Markets (EM) index very negative.  Provided history of market volatility back to 2010 – the last time with a peak of this nature was 2011.  Gross Domestic Product forecast is relatively strong; US economy doing well.  We were expecting a correction and corrections can be healthy for the portfolio.  Even if S&P is negative during the year it often ends up positive for the full year. Portfolio Review:  Portfolio down 0.78% but managers outperforming the benchmark.  The higher quality investments in our portfolio are why it is doing better than benchmark.  Reminder EAFE index does not include EM so that is why the disparity.  No rebalancing at this time; portfolio not far from allocated percentages. Public Comment – none. Next regular meeting: Monday, October 26, 2015 at 10:00 a.m. Meeting adjourned at 11:05 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature