Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: February 8, 2016 CITY HALL, ROOM 302A TIME: 10:06 A.M. Present: Douglas Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, John Hausman and Joe Newman. Absent: None Also Present: Jeremy Tollas, Plante Moran Financial Advisors (PMFA). Chair Newman asked for approval of the agenda. Motion Chubinski, seconded Bagwell to approve the agenda as amended. On a voice vote, motion carried. Minutes of the regular meeting of January 12, 2016 were presented. Motion Bagwell, 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 1/31/16 the market value of our portfolio was $126,491,506, a loss of $3,036,611 since 12/31/15. As of today the market value of our portfolio is $123,435,706 presently an additional loss of $3,055,800 since the 1/31/16 month end. Motion Hausman, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell: none Budrow-Bradstreet:  Retiree Dyke Eutsey died 1/11/16; adjustment made to the February 1 benefit; his surviving spouse, Patricia, will continue to receive 60% of his benefit, or $1,549.96.  Lynette Fuller, former police officer, requested annuity withdrawal. Motion Bagwell, seconded Hausman to approve the annuity withdrawal of pension contributions totaling $1,728.08 with no interest earned. On a voice vote, motion carried.  Motion Budrow-Bradstreet seconded Bagwell to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of an application for retirement from James C. Walters requesting an effective retirement date of 1/2/2016, and WHEREAS, James C. Walters 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 James C. Walters for retirement is approved, and RESOLVED, the retirement benefit for James C. Walters shall commence as of 1/2/16, and RESOLVED, the gross monthly benefit is $6,262.31 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $6,060.30 was paid on or about 2/15/16 and the regular gross monthly benefit shall begin 3/1/16. On a voice vote, motion carried. Police & Fire Pension Board February 8, 2016 Page 2 of 3 - Official Chubinski – none. Hausman – none. Newman – none. Old Business Disability retirement application – Dr. Covarrubias declined to serve as IME. Drs. Tatineni and Meyer then agreed on Dr. Ravinder Mediratti, M.D. in Portage. Dr. Mediratti accepted and was sent all necessary documentation by certified mail on 1/22/16. Applicant has an appointment on February 19, 2016 and was notified of such by telephone and certified mail. Service Retirement Policy – no action at this time. New Business GRS 6-30-15 Actuarial Review – moved to the March 21 meeting. GRS had the wrong date down and was unable to attend. Jeremy Tollas of PMFA reviewed the 2015 4th quarter reporting and current activity. He noted the following:  The market summary illustrates fast and slow rate hike cycles. We are in a slow tightening cycle and history shows this is better in the long run; thinks the unease is more related to oil prices.  Other market concerns include the strengthening of the U.S. dollar and China’s GDP.  Performance overview – positive returns for the bonds held in our portfolio;  Equities fairly flat; emerging markets (EM) are down almost 15% (China, Brazil, other South American countries) but Japan is the odd EM with positive market returns; EMs actually outperformed others year to date. The downturn is recent.  Domestic Equities – report provided a chart showing how each type did for the last quarter and one year; for the 4Q 2015 all markets were up; for the 2015 calendar year mid cap growth, mid cap broad, large cap growth and large cap core were up; all other equities down.  Domestic fixed income (bonds) chart for 4Q and calendar year 2015 showed negative returns in the 4Q but mostly positive returns, albeit slim, for the calendar year; as interest rates go up, bond prices fall; losers were longer term bonds and higher yielding, lower quality bonds.  Quarterly returns by manager show equity managers had positive returns; all bond funds were negative.  Total portfolio net of fees for the quarter is up 2.67%; up 0.43% year to date; this positive return was eroded by market activity in January; Time weighted return net of fees as of 1/31/16 is down 2.26% nearly the same as the benchmark.  General overall market confidence that Feds will increase rates again is low.  PMFA feels the market concerns are more driven by global concerns, not domestic. Police & Fire Pension Board February 8, 2016 Page 3 of 3 - Official Public Comment – none. Next regular meeting: Monday, March 21, 2016 at 10:00 a.m. Meeting adjourned at 10:47 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature