Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: April 18, 2016 CITY HALL, ROOM 112 TIME: 10:02 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, John Hausman and Joe Newman. Absent: None Also Present: Jeremy Tollas, Plante Moran Financial Advisors (PMFA); Linda Morrison, Finance & Revenue Services Director 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 March 21, 2016 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 3/31/16 the market value of our portfolio was $130,053,811, a gain of $4,075,270 since 2/29/16. As of today the market value of our portfolio is $129,941,730, presently a loss of $112,081 since the 3/31/16 month end. Motion Hausman, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – doing background checks on 6 potential employees. Budrow-Bradstreet: Received final actuarial valuation for Jason Crape non-duty disability received from GRS. City calculation matched exactly. Crape also paid his portion (one-half) of the charges for the third independent medical exam per P&F policy. Motion Hausman, seconded Bagwell to approve the following resolution: WHEREAS, the Board of Trustees received an application for non-duty disability retirement from Jason J. Crape, Sr. on September 3, 2015, and WHEREAS, it was determined by the Medical Committee that Jason J Crape, Sr. shall be deemed unable to perform the duties of Fire Fighter making him eligible for retirement pursuant to Section 6(2)(e), Act 345 of the Public Acts of 1937, as amended, and WHEREAS, the final actuarial calculation has been received, therefore be it RESOLVED, that the application of Jason J. Crape, Sr. for non-duty disability retirement is approved, and RESOLVED, the retirement benefit for Jason J. Crape, Sr. shall commence as of 9/3/15, and RESOLVED, the gross monthly benefit payable to age 55 is $1,029.02, subject to tax withholdings and any other elective deductions, and RESOLVED, the gross monthly benefit payable at age 55 and thereafter is $2,058.05, and Police & Fire Pension Board April 18, 2016 Page 2 of 3 - Official RESOLVED, the gross retroactive payment of $6,071.22 was paid on or about 4/1/16 and the regular gross monthly benefit shall also begin 4/1/16. On a voice vote, motion carried.  Retiree William Heffernan died 3/21/16. Surviving spouse, Carolyn, is receiving 60% survivor spouse benefit.  Received city cost calculation for Shawn Metheny’s request to purchase 1 year military service credit. His cost $5,354.08; total cost $28,336.  James Tuyls submitted a request to City Manager Fleury to purchase one year military service credit.  James Mitcavish retired effective 4/9/16. FAC and retirement contribution info calculated – ready to send to GRS.  Time, once again, to elect a Fire Representative. Memo requesting nominations will go out today. Chubinski – none. Hausman – new hire starting around first of June; possible retirement in August. Newman – none. Old Business Service Retirement Policy – no action at this time. New Business HB 5438 Public Employee Retirement Benefit Calculation Act – a copy of the proposed legislation distributed to Board. PMFA Update: Jeremy Tollas of PMFA gave a market update and portfolio review:  Fixed income performance overview as of 3/1/16 shows an increase;  Equity performance overview – attractive March; EM up 13% outperforming developed countries; positive indicators are: China and Brazil having stronger GDP; industrial production in Europe strongest performance in six years; the ECB cut the deposit rate by 10 basis points and stepped up the pace of quantitative easing from 60 billion to 80 billing euros per month, providing more fuel for the Eurozone economy;  International Developed earnings lag the US leaving room for greater upside potential.  Portfolio value: bond funds all outperformed the equities through March 31;  Equities: Lazard and Harding Loevner outperformed the index even though HL was still a negative return;  Year to date market value as of 3/31 had 1.49% return;  Time weighted return (net of fees) for the calendar year as of 4/7/16 is 1.04%, annualized to 3.94%;  Time weighted return (net of fees) for fiscal year as of 4/7/16 is -0.11%; annualized to -0.14%. Police & Fire Pension Board April 18, 2016 Page 3 of 3 - Official  Asset allocation is out of balance; PMFA provided the following rebalancing recommendation: o sell $1.5 million from Loomis Sayles Fixed Income; sell $2.5 million from World Asset Management 500 Index to raise $2.5 million cash and invest $1.5 million in Lazard International Equities which will get this asset manager closer to the target. PMFA feels the target % is still appropriate; good timing for the rebalancing for the long term. Motion Budrow-Bradstreet, seconded Chubinski to approve the proposed rebalancing schedule. On a voice vote, motion carried. Public Comment – none. Next regular meeting: Monday, May 23, 2016 at 10:00 a.m. Meeting adjourned at 10:45 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature