Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: October 17, 2016 CITY HALL, ROOM 302A TIME: 10:03 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, Revenue Services and Finance Director and Nancy Mullett, Labor Relations Attorney. 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 September 14, 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 9/30/16 the market value of our portfolio was $132,250,296, a loss of $390,394 since 8/31/16. As of today the market value of our portfolio is $130,535,488, presently an additional loss of $1,714,808 since the 9/30/16 month end. Motion Bagwell, seconded Hausman to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – started 4 new employees, conditional offers to 3 more put PD personnel up to the 111 authorized positions. Budrow-Bradstreet: New hires: Garrett Day, Gregory Gammons, Stephen Herbstreith and Jason Eggerstedt in PD on 10/3/16. Motion Bagwell, seconded Chubinski, to approve the following resolutions: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Bradley W Palmer requesting an effective retirement date of 9/6/16, and WHEREAS, Bradley W Palmer 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 Bradley W Palmer for retirement is approved, and RESOLVED, the retirement benefit for Bradley W Palmer shall commence as of 9/6/16, and RESOLVED, the gross monthly benefit is $7,724.87 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $13,904.77 was paid on or about 10/18/16 and the regular gross monthly benefit shall begin 12/1/16. On a voice vote, motion carried. Chubinski – none. Police & Fire Pension Board October 17, 2016 Page 2 of 2 - Official Hausman – none. Newman – none. Old Business Service Retirement Policy – Budrow-Bradstreet to bring an amended version with changes marked to the next meeting. Chair Newman previously suggested we use all of the forms provided in the draft from legal counsel; we will adopt as many as possible and may have to coordinate with the City on one or two. New Business PMFA Update: Jeremy Tollas from PMFA gave the following economic update  No interest rate hike by Feds for 3rd straight meeting but maybe in December;  Small cap stocks led the way for equities in September; overall, international equities edged out domestic equities because of weakening dollar; not much action in bonds.  Gross Domestic Product – has been positive since 1st quarter of 2015 due to personal consumption; even though country has been expanding since 2009 the percent is still low compared to other expansion periods; sub par returns could continue and leaves room for market value improvement.  Consumer confidence continues to be strong.  Provided indices rolling 5-year average for informational purposes; domestic equities have outperformed international equities for the last 106 months.  Bonds returns: not much activity in September; PMFA looks as both stocks and bonds as good investment and diversifier. Summary of Portfolio:  Robeco Boston Partners large cap value – time weighted return (TWR) as of 9/30/16 is below the benchmark, due mainly to 1st and 2nd quarter returns; historically Robeco does outperform the index over three-year term;  TWR for portfolio for calendar year as of 9/30/16 is 5.87% - slightly below benchmark; TWR for fiscal year as of 9/30/16 is 2.59% - also slightly below benchmark.  No rebalancing recommended at this time; diversification is as targeted. Public Comment – none. Next regular meeting: Tuesday, November 22, 2016 at 10:00 a.m. Meeting adjourned at 10:32 a.m. Respectfully submitted, Gail Budrow-Bradstreet, Secretary __________________________________ _________________________________ Board Member signature Board Member signature