Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: September 18, 2017 CITY HALL, ROOM 302B TIME: 10:03 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, and Joe Newman. Absent: Jake Martin (excused) Also Present: Jeremy Tollas, Plante Moran Financial Advisors (PMFA); and Linda Morrison, Revenue Services/Finance Director. Chair Newman asked for approval of the agenda. Motion Bagwell, seconded Budrow- Bradstreet to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on August 21 2017. Motion Bagwell, seconded Chubinski to approve the minutes as presented. On a voice vote, motion carried. Presented a summary of assets prepared by Comerica Bank. As of 8/31/17 the market value of the portfolio was $139,096,468, a loss of $508,599 since 7/31/17. As of today, the portfolio market value is $139,997,311, which is a gain of $900,843 since the prior month end. Motion Chubinski, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – none. Budrow-Bradstreet: New hires: Jacob Gray and Jessica Benson, Fire Dept. on 9/25/17. Surviving spouse Mary Wright (Thomas – Fire) died 9/12/17; her benefit was adjusted for 12 days in September as a final payment. Retiree Nicholas Maricic (Fire) died 9/9/17; he was not married at time of retirement so there is no survivor; his benefit was adjusted for 9 days in September as a final payment. There are four new retirements for formal approval. Motion Chubinski, seconded Bagwell to approve the following resolutions: KATHY SCHLEY: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Kathy Schley requesting an effective retirement date of 7/30/2017, and WHEREAS, Kathy Schley is eligible for retirement based on her 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 calculation was received, therefore be it RESOLVED, that the application of Kathy Schley for retirement is approved, and RESOLVED, the retirement benefit for Kathy Schley shall commence as of 7/30/2017, and RESOLVED, the gross monthly benefit is $5,277.53 subject to tax withholdings and any other elective deductions, and September 18, 2017 Page 2 of 4 - Official RESOLVED, the gross retroactive payment of $5,618.02 for 2 days in July and all of August was paid on or about 9/15/2017 and the regular gross monthly benefit shall begin 10/1/17. MARK BURKART: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Mark Burkart requesting an effective retirement date of 8/11/2017, and WHEREAS, Mark Burkart 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 calculation was received, therefore be it RESOLVED, that the application of Mark Burkart for retirement is approved, and RESOLVED, the retirement benefit for Mark Burkart shall commence as of 8/11/2017, and RESOLVED, the gross monthly benefit is $4,218.33 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $2,857.58 for 21 days in August was paid on or about 9/1/2017 and the regular gross monthly benefit shall begin 10/1/17. CHRISTOPHER LOVE: WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from Christopher Love requesting an effective retirement date of 7/6/2017, and WHEREAS, Christopher Love 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 calculation was received, therefore be it RESOLVED, that the application of Christopher Love II for participation in the DROP is approved, and RESOLVED, the DROP benefit for Christopher Love shall commence as of 7/6/2017, and RESOLVED, the gross monthly retirement benefit is $6,244.21 and shall be Christopher Love’s DROP benefit credited monthly to his DROP account and RESOLVED, Christopher Love’s participation in the DROP shall terminate on July 6, 2022. JOHN HAUSMAN: WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from John J Hausman requesting an effective retirement date of 7/9/2017, and WHEREAS, John J Hausman 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 calculation was received, therefore be it RESOLVED, that the application of John J Hausman II for participation in the DROP is approved, and RESOLVED, the DROP benefit for John J Hausman shall commence as of 7/9/2017, and RESOLVED, the gross monthly retirement benefit is $6,207.61 and shall be John J Hausman’s DROP benefit credited monthly to his DROP account and RESOLVED, John J Hausman’s participation in the DROP shall terminate on July 9, 2022. September 18, 2017 Page 3 of 4 - Official On a voice vote, motion carried. Retirements pending: DROP – Fire – Wayne Thompson, Shawn Metheny; regular service retirement – Todd Madsen and Austin Simons. Chubinski – no report. Newman – no report. Old Business Police and Fire Pension Handbook – Mullett presented a document with recommended changes at a previous meeting. A clean version will be presented at next meeting to consider formal action. Non-Duty Disability Retirement – Report from physicians appointed to the Medical Committee were received. Both physicians opined within a reasonable degree of medical certainty Silverman is totally and permanently disabled from returning to the duties of a police detective for the City of Battle Creek. Motion Budrow-Bradstreet, seconded Bagwell to approve the application for Non-Duty Disability Retirement submitted by Scott Silverman on June 15, 2017. On a voice vote, motion carried. New Business GRS Consulting Services provided the July 1, 2017 proposed rates and fees for services. Motion Chubinski, seconded Bagwell to approve and accept GRS Consulting Services as the actuary along with the proposed fees for services July 1, 2017 through June 30, 2018. On a voice vote, motion carried. Loomis Sayles requested updated signer list. This is common. Updated and signed by members present; will send in once complete. PMFA Update – Jeremy Tollas of PMFA gave an overall market update of the fixed income and equity indices. He noted the following:  Russell 2000 small cap lower than mid and large cap.  International equities up 20% thru 9/15; emerging markets up just over 30% as of 9/15;  PMFA feels there is still upside potential for international equities and emerging markets.  Strength of dollar chart (see report, page 8) correlates with the international market value; runs in cycles and still favorable;  Economic data continues to be fairly strong. Tollas went on to review, in general, the current portfolio, highlighting the following:  Loomis Sayles Fixed Income underperformed due to interest rate hikes;  Equities fairly consistent – out performed the benchmarks except for Boston Company Large Cap Growth.  Time weighted returns net of fees: fiscal year to date: return is 1.79% as of 9/8/17 – annualized return 9.72% calendar year to date: return is 7.90% - annualized return 11.69% September 18, 2017 Page 4 of 4 - Official  Raised cash in the last month;  asset allocation – no recommended rebalancing of the 45 bonds/55 equities;  Employer quarterly contribution for Jul-Aug-Sep coming at month end. Public comment: Hausman suggested it may be easier for the City to calculate the DROP statement through the entire time participation time and provide to the employee up front rather than produce a statement annually. John will send to City for possible use and discuss with Union. This would require a contract change. Next regular meeting: Tuesday, October 17 at 10:00 a.m. Meeting adjourned at 10:43 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature