Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: January 16, 2018 CITY HALL, ROOM 112 TIME: 10:06 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Jake Martin and Joe Newman. Absent: Stan Chubinski (excused). Also Present: Dori Drayton of 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 November 20, 2017. Motion Bagwell, seconded Martin to approve the minutes as presented. On a voice vote, motion carried. Presented a summary of assets prepared by Comerica Bank. As of 11/30/17 the market value of the portfolio was $143,803,119, a gain of $1,333,898 since 10/31/17. As of 12/31/17 the market value was $145,562,646, a gain of 1,759,527 since 11/30/17. As of today, the portfolio market value is $148,481,880, which is an astounding gain of $2,919,234 since the prior month end. Quarterly employer contribution of $1,292,588.75 made on 12/26/17 attributing to some of the gain. Motion Martin, seconded Bagwell to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – hired 2 officers; J Coons retiring 1/19/18. Budrow-Bradstreet:  New hires: Deaudre Perry, Police Dept on 12/13/17; Jessica Elsaida, Police Dept on 12/19/17  Adam Magers resigned effective 11/19/17; letter sent detailing withdrawal and deferred retirement options 12/21/17.  Brandon Rumsey, Fire Dept, resigned effective 10/23/17; letter sent 11/27/17 re: options for withdrawal.  Retiree Robert Watson died January 7, 2018. January benefit adjusted to $312.70 for 7 days. There was no surviving spouse.  Michael Fleisher (fire) and Carl Turner (fire) request to purchase of 12 months military service credit is in process. Submitted for Commission approval 1/16/18.  Ryan Ricketson, former police officer, requested withdrawal of funds. Post-tax contributions of $29,138.40 were paid to him and interest of $2,332.32 was rolled over into an IRA on 1/5/18.  Comerica cash sweep fee for the short-term investment fund (STIF) will increase to 25 basis points effective February 1, 2018.  Officer Brett Weiss is on a leave of absence starting 12/31/17, returning 6/14/18.  Website updated with 6/30/17 annual report (as required by PA 347 of 2012), audit and actuarial valuation. January 16, 2018 Page 2 of 2 - Official Martin – 2 conditional job offers pending. Newman – no report. Old Business - none New Business Election of Officers – tabled until next regular meeting with all Board members present. Re-employment of Retirees – a request for legal clarification will be sent to legal counsel. Presently contracting with K Schley for grant services in PD. Disability Policy – Budrow-Bradstreet requested revision to the policy for effective date of retirement for disability retirement to address situations where member is still employed and receiving pay while determination of disability is determined. Board agreed to request revisions to the current Disability Policy by its legal counsel. Public Act 202 of 2017 – reviewed the requirements, which place additional burden on the Pension Fund – both time/processes and unfunded mandates requiring additional costs. Will draft a letter of opposition and give to City’s lobbyist to address it at the state level. PMFA Update – Dori Drayton highlighted the market index performance as of 12/31/17. The underlying reasons for high returns: tech groups did extremely well; Europe continues to do well; quantitative easing still contributing to higher gross domestic product (GDP); Federal Reserve raised interest rate in December; inflation still reasonable-makes debt cheaper; tax reform with expectation of increased corporate earnings. PMFA does not think the market is overvalued. Time weighted return (TWR) net of fees as of 12/31/17 is 12.77%, slightly below the benchmark of 13.01%. Fiscal year to date TWR is 7.54% as of 1/4/18 – annualized 15.26%. Drayton also reported Harding Loevner made some organizational changes, which PMFA reviewed and have no concerns. Comerica notified P&F Retirement board of an unpaid Sigma deficiency with options for payoff (copy of letter to be included with minutes). Motion Bagwell, seconded Martin to pay off the Sigma liability of $131,239.25 through Option Two – 60 months. On a voice vote, motion carried. Next regular meeting: Wednesday, February 21, 2018 at 10:00 a.m. Meeting adjourned at 11:42 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature