Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: October 17, 2017 CITY HALL, ROOM 302A TIME: 10:03 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, Jake Martin and Joe Newman. Absent: None. Also Present: Dori Drayton, Plante Moran Financial Advisors (PMFA); and Linda Morrison, Revenue Services/Finance Director. Chair Newman asked for approval of the agenda. Motion Chubinski, seconded Bagwell to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on September 18, 2017. Motion Bagwell, seconded Budrow-Bradstreet to approve the minutes as presented. On a voice vote, motion carried. Presented a summary of assets prepared by Comerica Bank. The quarterly employer contribution of $1,292,588.75 was deposited on 9/25/17. As of 9/30/17 the market value of the portfolio was $141,553,546, a gain of $2,072,933 since 8/31/17. As of today, the portfolio market value is $142,506,820, which is a gain of $953,274 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: Brandon Rumsey, Fire Dept. on 9/25/17. Presented resolution for service retirement for Austin Simons. Motion Budrow-Bradstreet, seconded Bagwell to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Austin N Simons requesting an effective retirement date of 9/2/2017, and WHEREAS, Austin N Simons 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 Austin N Simons for retirement is approved, and RESOLVED, the retirement benefit for Austin N Simons shall commence as of 9/2/2017, and RESOLVED, the gross monthly benefit is $5,757.81 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $5,565.88 for 30 days of September was paid on or about 10/1/2017 and the regular gross monthly benefit shall begin 11/1/17. On a voice vote, motion carried. October 17, 2017 Page 2 of 3 - Official EDRO for retiree Todd Madsen was revised, reviewed and certified by legal counsel, and presented for approval. Motion Bagwell, seconded Martin to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of a First Amended Eligible Domestic Relations Order dated October 9, 2017, wherein the Alternate Payee, Kristie J. Bailey is awarded certain rights to the benefits of the Participant, Todd C. Madsen, and WHEREAS, the Alternate Payee is entitled to 21% of the Participant’s monthly retirement benefit from the Retirement System payable in the form of the Retirement System’s Regular Street Life option, and WHEREAS, the Participant shall elect the Retirement System’s Regular Straight Life Option, and shall be permitted to designate his current spouse as the surviving spouse for the purposes of the entire 60% survivor benefit associated with such option, and WHEREAS, the payments to the Alternate Payee shall begin when the Participant commences benefits from the Retirement System, and the Alternate Payee’s payments shall cease upon the death of the Participant, and further, if the Alternate Payee were to predecease the Participant, then her share of the Participant’s benefits shall revert to him, and WHEREAS, the Board’s policy is to require that the cost for the actuary’s calculations are to be borne by the parties to the domestic relations proceedings, and the order provides that the Alternate Payee and the Participant have agreed to share any additional actuarial costs equally, and WHEREAS, said matter had been discussed with legal counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Pension System and applicable law including Public Act 46 of 1991 (MCLA 38.1701) as amended, therefore be it RESOLVED, that the Board acknowledges receipt of said court order, will pay pension benefits consistent with said order subject to an application being filed by the Participant to commence benefits, and further RESOLVED, that upon application of the Participant this file be forwarded to the Board’s actuary for calculation of the benefits, and further RESOLVED, that a copy of this resolution be immediately attached as the top sheet of the pension file and other appropriate records be kept for the Pension System relative to this matter, and further RESOLVED, that copies of this resolution be sent to Todd C. Madsen, the Participant; Timothy D. Bennett, Esq., attorney for the Participant; Kristie J. (Madsen) Bailey, the Alternate Payee; and the Board’s actuary. On a voice vote, motion carried. Retirements pending: DROP – Fire – Wayne Thompson, Shawn Metheny; regular service retirement – Todd Madsen; non-duty disability retirement – Silverman (official). Chubinski – no report. Martin – no report. Newman – no report. October 17, 2017 Page 3 of 3 - Official Old Business Police and Fire Pension Handbook – Revised pension handbook with all changes presented. Minor corrections noted. Will revise and present at next meeting for formal approval. New Business PMFA Update – Dori Drayton of PMFA gave an overall market update of the fixed income and equity indices. She noted the following:  Provided chart on de-risking before a recession to show how it can be costly; expansion has been over 8 years since last recession; PMFA still feels equities have some room to increase;  Some of the political climate should already been priced in to the market but performance could be impacted if the expectations do not occur;  September not very good for bonds even though for calendar year to date thru 9/30 still strong; equities in September all up with international and emerging markets doing the best;  Equity markets up mainly because economy doing quite well; Expected 3rd Q gross domestic product (GDP) to be lower due to hurricanes but expect it to be short lived;  Federal reserve not changing interest rate at this time but working to reverse the effects of the quantitative easing to get things on a more normal level overall (interest rate, inflation);  GDP forecast – all feel it will be between 2-3% over the next few years – steady. Drayton went on to review, in general, the current portfolio, highlighting the following:  Time weighted returns net of fees: fiscal year to date: return is 3.57% as of 10/10/17 – annualized return 13.37%; calendar year to date: return is 9.78% - annualized return 12.79%  asset allocation – no recommended rebalancing of the 45 bonds/55 equities;  Performance by manager – total ytd return as of 9/30 is 9.06%; some outperformed benchmark easily; Loomis Sayles fixed income 1% off benchmark; Boston Co Large Cap growth also missed benchmark by 4.5% - more detailed update at next meeting. Public comment: none. Next regular meeting: Monday, November 20 at 10:00 a.m. Meeting adjourned at 10:35 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature