Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: December 22, 2015 CITY HALL, ROOM 112 TIME: 10:00 A.M. Present: Douglas Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, John Hausman and Joe Newman. Absent: None. Also Present: Dori Drayton from Plante Moran Financial Advisors; Linda Morrison, Finance and Revenue Services Director. Chair Newman asked for approval of the agenda. Motion Chubinski, seconded Bagwell to approve the agenda. On a voice vote, motion carried. Minutes of the regular meeting of November 16, 2015 were presented. Motion Hausman, seconded Bagwell to approve the minutes as presented. On a voice vote, motion carried. A summary of assets prepared by Comerica Bank was presented. As of 11/30/15 the market value of our portfolio was $130,283,892, a gain of $200,032 since 10/31/15. As of today the market value of our portfolio is $126,975,529, presently a loss of $3,308,363 since the 11/30/15 month end. $2,000,000 in cash was raised on or about November 23, 2015. The semi-annual contribution of $2,327,442 by the City shall be deposited on or about December 24, 2015. Motion Chubinski, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell: lost an officer to Grand Rapids; just hired one in November; looking to hire four more. Budrow-Bradstreet: Retiree Howard Wonderly died 11/28/15. Benefit adjusted/prorated for his surviving spouse, Lorraine. She will receive 60% of his benefit. Letter sent 12/4/15 for forms needed. Ryan Ricketson resigned effective 12/4/15; letter sent outlining his options regarding his contribution. Former member, Kelly E. Robinson requested annuity withdrawal. Robinson was not vested and left employment with the City 6/30/2000. Refund of $1,338.85 contributions plus $1,037.15 interest earned totaling $2,376.00 was issued 11/18/15. Member Calvin Hardin requested to purchase 12 months military time. The total cost per actuarial calculation is $21,394. The cost to Hardin will be 7.5% of his full time compensation (current rate times 2,912 hours) if approved by City Commission. Chubinski – none. Hausman – none. Newman – none. Police & Fire Pension Board December 22, 2015 Page 2 of 2 - Official Old Business Disability retirement application – Reports received from both physicians on the medical committee. It appears the two IMEs are not in agreement. Directed by Chair to send letter to both physicians so a third doctor can be named to the Medical Committee to render his/her opinion regarding disability. Service Retirement Policy – no action at this time. New Business 2016 Meeting Schedule – distributed and accepted. 2016 election of officers: Motion Chubinski, seconded Bagwell to keep the officers the same, that is Newman as President, Chubinski as Vice President and Budrow-Bradstreet as Secretary. On a voice vote, motion carried. Portfolio – Market Update and Review: Dori Drayton provided market summary and portfolio review. Federal Reserve raised interest rates by .25%. The Fed Board projecting rates will continue to increase by 1.5% total in the next twelve (12) months; the market pricing is slower, anticipating half that – there is a large disconnect between the two. The Board was reminded that rate hikes are favorable in the long term despite the more immediate market decline, which was illustrated in the report. Portfolio review shows Robeco large cap value (higher quality stocks) with negative returns as of 11/30/15; the benchmark was also negative but not as much. Robeco small cap value beat the benchmark considerably with a positive return while the benchmark was negative. The time weighted return net of fees (TWR) as of 11/30/15 was 1.67%, slightly ahead of the blended benchmark. TWR for the fiscal year is -1.71%, annualized that is -3.70%. No change to the asset allocation. Public Comment – none. Next regular meeting: January 12, 2016 at 10:00 a.m. Meeting adjourned at 11:05 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature