Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: August 15, 2016 CITY HALL, ROOM 112 TIME: 10:01 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, John Hausman and Joe Newman. Absent: None Also Present: Linda Morrison, Revenue Services and Finance Director. Chair Newman asked for approval of the agenda. Motion Hausman, seconded Chubinski to approve the agenda as amended. On a voice vote, motion carried. Minutes of the regular meeting of July 19, 2016 were presented. Motion Bagwell, seconded Hausman to approve the minutes as presented. On a voice vote, motion carried. A summary of assets prepared by Comerica Bank was presented. As of 7/31/16 the market value of our portfolio was $133,489,624, a gain of $1,537,762 since 6/30/16. As of today the market value of our portfolio is $135,510,388, presently an additional gain of $2,020,764 since the 7/31/16 month end. Discrepancy on the report as of 7/31/16. Budrow-Bradstreet will check on this and provide an update to the Board. Motion Hausman, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – none. Budrow-Bradstreet: Two retirees, James Walters (1/2/16) and Ray Felix (8/1/14) had incorrect FAC calculations recently discovered by the City. The information was submitted to GRS. Upon receipt of new calculations, a plan for correction and reimbursement of benefits will be worked out. Motion Bagwell, seconded Chubinski to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Michael R Wood requesting an effective retirement date of 7/16/16, and WHEREAS, Michael R Wood 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 Michael R Wood for retirement is approved, and RESOLVED, the retirement benefit for Michael R Wood shall commence as of 7/16/16, and RESOLVED, the gross monthly benefit is $6,430.36 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $3,215.18 was paid on or about 8/12/16 and the regular gross monthly benefit shall begin 9/1/16. On a voice vote, motion carried. Chubinski – none. Police & Fire Pension Board August 15, 2016 Page 2 of 2 - Official Hausman – fail to understand what is going on with such large pensions-fail to understand why this type of bargaining agreement is even approved. Frustrating that someone can walk out with such a benefit without ever paying in. Newman – none. Old Business Service Retirement Policy – draft policy from legal counsel presented. Need more clarification and review. Contact Vanoverbeke. New Business PMFA Update: Representatives from PMFA could not be at the meeting and sent a report ahead of time. The time weighted return, net of fees, as of July 31 is 5.68%; the benchmark was 6.47%. All investment managers were in the black with Robeco Boston Partners Large Cap had the poorest return in comparison to the benchmark. Both international managers did very well, with returns more than 4% better than the benchmark. The calendar year to date time weighted return is 5.46% and the fiscal year to date TWR is 2.18% as of August 1. Public Comment – Martin Erskine, president of Battalion Chiefs, feels the board overstepped its boundaries when it sent a letter regarding their tentative agreement. It is the responsibility of the City to review the retirement benefits, costs and contribution rates when negotiating contracts. Erskine did not appreciate the Board interfering the negotiation process. Chair Newman responded the Board was, in no way, trying to interfere with the process and understands the benefits are from the negotiations between the bargaining group and the City. The Board simply wanted all parties to understand and follow the state statute as it relates to retirement benefits since we are the fiduciaries for the pension fund. Next regular meeting: Wednesday, September 14, 2016 at 10:00 a.m. Meeting adjourned at 10:48 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature