Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: March 13, 2018 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: Jeremy Tollas and Justin Cohen of Plante Moran Financial Advisors (PMFA); Tammy Giannunzio, Staff Accountant; and Derek Henning of GRS Retirement Consultants. Chair Newman asked for approval of the agenda. Motion Bagwell, seconded Martin to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on January 16, 2018. Motion Bagwell, seconded Martin to approve the minutes as presented. On a voice vote, motion carried. Presented the summary of assets prepared by Comerica Bank. As of 1/31/18 the market value of the portfolio was $148,686,221, a gain of $3,123,575 since 12/31/17. As of 2/28/18 the market value was $144,256,544, a loss of $4,429,677 since 1/31/18. As of today, the portfolio market value is $146,297,316, which is a gain of $2,040,772 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 – no report. Budrow-Bradstreet:  New hires: Benjamin Barle and Shaun Hughes, Fire Dept both hired on 1/22/18;  Retiree Stewart Lowe died January 26, 2018. January benefit (paid 2/1/18) adjusted to $1,695.85 for 26 days. There was no surviving spouse;  Retiree Robert Beecher died February 6, 2018. Surviving spouse, Helen Beecher, set up to received 60% survivor benefits. All benefit payments adjusted based on his date of death;  Retiree Ronald Burdett died February 12, 2018. February benefit (paid 3/8/18) adjusted to $1,514.49 for 12 days. There was no eligible surviving spouse;  Michael Fleisher (fire) and Carl Turner (fire) requests to purchase of 12 months military service credit were approved by Commission 1/16/18. Fleisher paid his required contribution of $8,306.48.; Turner paid his required contribution of $7,305.74;  Martin Brown and Jeff Coons submitted application for service retirement; Wayne Thompson DROP program application process complete. Motion Chubinski, seconded Bagwell to approve the following resolutions: MARTIN BROWN: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Martin Brown requesting an effective retirement date of 3/1/2018, and March 13, 2018 Page 2 of 4 - Official WHEREAS, Martin Brown 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, and WHEREAS, Martin Brown elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Martin Brown for retirement is approved, and RESOLVED, the retirement benefit for Martin Brown shall commence as of 3/1/18, and RESOLVED, the gross monthly benefit is $4,196.16 subject to tax withholdings and any other elective deductions, and RESOLVED, the regular gross monthly benefit shall begin 4/1/18. JEFFREY COONS: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Jeffrey Coons requesting an effective retirement date of 1/20/2018, and WHEREAS, Jeffrey Coons 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 Jeffrey Coons for retirement is approved, and RESOLVED, the retirement benefit for Jeffrey Coons shall commence as of 1/20/2018, and RESOLVED, the gross monthly benefit is $4,717.11 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $1,825.98 for 12 days in January was paid on or about 3/1/2018 and the regular gross monthly benefit shall begin 4/1/2018. WAYNE THOMPSON: WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from Wayne Thompson requesting an effective retirement date of 7/12/2017, and WHEREAS, Wayne Thompson is eligible for retirement based on his service credit pursuant to Act 345 of the Public Acts of 1937, as amended, and a Letter of Understanding between the City of Battle Creek and IAFF Local 335, and WHEREAS, the final actuarial calculation was received, therefore be it RESOLVED, that the application of Wayne Thompson II for participation in the DROP is approved, and RESOLVED, the DROP benefit for Wayne Thompson shall commence as of 7/12/2017, and RESOLVED, the gross monthly retirement benefit is $3,656.20 and shall be Wayne Thompson’s DROP benefit credited monthly to his DROP account and RESOLVED, Wayne Thompson’s participation in the DROP shall terminate on July 12/2018. On a voice vote, resolutions approved. Emergency Service Manager McKenzie’s EDRO was reviewed by legal counsel. The associated legal fees have been paid. Motion Bagwell, seconded Budrow-Bradstreet to approve the following resolution: March 13, 2018 Page 3 of 4 - Official WHEREAS, the Board of Trustees is in receipt of an Eligible Domestic Relations Order dated May 8, 2017, wherein the Alternate Payee, Angela B. McKenzie is awarded certain rights to the benefits of the Participant, Michael J. McKenzie, and WHEREAS, the Alternate Payee is entitled to a portion of the Participant’s monthly retirement benefit from the Retirement System, and WHEREAS, the payments to the Alternate Payee shall begin when the Participant commences benefits from the Retirement System, unless the Alternate Payee elects to receive benefits at any time after the Participant reaches his earliest retirement date, 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, and WHEREAS, the legal fees for review of the domestic relations order have been paid in full, 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 either the Participant or the Alternate Payee 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 Michael J. McKenzie, the Participant; Alicia Katherine Storm, Esq., attorney for the Participant; Angela B. McKenzie, the Alternate Payee; Rex Brueggeman, Esq., attorney for the Alternate Payee; and the Board’s actuary. On a voice vote, resolution approved. Chubinski – no report. Martin – no report. Newman – no report. Old Business Election of Officers – Motion Budrow-Bradstreet, seconded Bagwell to keep the officers the same. Newman, Chubinski and Budrow-Bradstreet accepted. On a voice vote, motion carried. Re-employment of Retirees – legal opinion from VanOverbeke, Michaud & Timmony received (drafted by Frank Judd). In addition to legal opinion, a draft policy was provided. Motion Bagwell, seconded Martin to adopt the Re-Employment of A retiree Policy as presented. On a voice vote, motion carried. March 13, 2018 Page 4 of 4 - Official Disability Retirement Policy – additional review of current policy requested from legal counsel. Motion Budrow-Bradstreet, seconded Chubinski to approve the Disability Retirement Policy as presented. On a voice vote, motion carried. Public Act 202 of 2017 – letter not yet drafted. New Business June 30, 2017 Actuarial Valuation Review – Derek Henning from GRS Retirement Consultants provided a summary of the 6/30/17 actuarial valuation report highlighting the percent of payroll for 2018, current funding level of 78%, the loss as a percent of actuarial accrued liabilities, benefit changes and changes to valuation assumptions. Chair Newman complimented Henning for an effective and understandable explanation of the report and status of the retirement fund. Comerica List of Authorized Signers – updated list of signatures for Comerica. Document will be returned to Comerica, copy in file. Cost for Administrative Functions – Chair Newman requested city prepare a proposal. PMFA Update – Jeremy Tollas and Justin Cohen of PMFA gave a brief but thorough review of the market trends and our portfolio. Board was given an October-November-December quarterly review by investment type and for the individual asset managers. An analysis of the Comerica Short-Term Investment Fund demonstrated the returns are higher than other similar investment opportunities. The current value of the portfolio is as follows:  Time weighted return (net of fees) year to date through 2/28/18: 0.09%; outperforming the blended core benchmark;  TWR fiscal year to date as of 3/5/18 is 6.73%; annualized return 10.06%; also outperforming the benchmark. Motion Budrow-Bradstreet, seconded Bagwell to convene into closed session to discuss current applications for disability retirement. On a voice vote, motion carried. Board returned to open session (11:24 a.m.) Public Comment – none. Next regular meeting: Monday, April 16, 2018 at 10:00 a.m. Meeting adjourned at 11:26 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature