Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: April 16, 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 of Plante Moran Financial Advisors (PMFA); Linda Morrison, Revenue Services and Finance Director; and Nancy Mullett, Labor Attorney. 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 and closed session on March 13, 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. City employer contribution of $1,292,588.75 was made on March 26th. As of 3/31/18 the market value of the portfolio was $143,739,919, a loss of $516,625 since 2/28/18. As of today, the portfolio market value is $143,908,323, which is a slight gain of $168,404 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 – department hired 3 new officers; another new hire coming in May. Budrow-Bradstreet:  Retiree Theral Smith died 3/21/18. Full benefit payment pulled back; final payment for 21 days in March sent. His spouse died in 2015 – no surviving benefits.  Surviving spouse Adeline Kilpatrick died 3/22/18. The full benefit payment was pulled back; final payment for 22 days in March sent.  Retiree Larry McAdow died 3/28/18. Full benefit check was returned and voided. Final payment for 28 days will be issued to his estate. There was no eligible surviving spouse at the time of his death. Chubinski – no report. Martin – Chief Schmaltz resigned. Newman – no report. Old Business Public Act 202 of 2017 – letter not yet drafted. Cost for Administrative Functions – Morrison gave Board a proposal for the City to provide Pension Administrator services to the P&F Retirement System at a cost of $8,000 for the current fiscal year and same for fiscal year 7/1/18 – 6/30/19. Motion Bagwell, seconded Chubinski to accept the proposal for administrative services. Discussion followed. Chair April 16, 2018 Page 2 of 2 - Official Newman requested a formal contract be presented at the next meeting to finalize. Bagwell and Chubinski rescinded the motion/second. No action taken at this time. New Business PMFA Update – Jeremy Tollas of PMFA gave a brief but thorough review of the market trends and our portfolio. Presently the market is in the third longest expansion period yet PMFA feels there is still room for growth. Report provided number of market changes between 1%- 2%-3%. Since 1/1/18 there have been 40 occurrences of 2% market change compared to only 8 in all of 2017 and 16 in all of 2016. Positive impacts on the market include: interest rate hike from 1.5% to 1.75%; GDP up to 2.75% from 2.5%. Calendar year time weighted return (TWR) – all negative for bond funds but still outperformed the benchmarks; some equities also had negative returns but, as seen with bond funds, all outperformed the benchmarks. Year to date TWR is negative 0.58%. The fiscal year to date TWR is 6.06%, annualized to 8.0%. No rebalancing required at this time. PMFA will review portfolio for any potential need to raise cash. Public Comment – none. Motion Bagwell, seconded Chubinski to convene into closed session to discuss current applications for disability retirement (10:37 a.m.). On a voice vote, motion carried. Board returned to open session (11:05 a.m.) Next regular meeting: Monday, May 21, 2018 at 10:00 a.m. Meeting adjourned at 11: 06 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature