Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: May 14, 2018 CITY HALL, ROOM 112 TIME: 10:31 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, Jake Martin and Joe Newman. Absent: None. Also Present: 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 April 16, 2018. Motion Martin, seconded Bagwell to approve the minutes as presented. On a voice vote, motion carried. Presented the summary of assets prepared by Comerica Bank. As of 4/30/18 the market value of the portfolio was $143,239,747, a loss of $500,172 since 3/31/18. As of today, the portfolio market value is $145,124,489, which is a gain of $1,884,742 since the prior month end. Motion Bagwell, seconded Chubinski to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – Budrow-Bradstreet:  New hires: Police department hires: Jordan Pardee, 3/26/18; Andrew Frantz, 3/26/18; and Clay Haggard, 3/26/18;  Doug Bagwell’s term expires 6/30/18. The nomination/election process started. Requests for nominations sent to all active police members sent out May 2, 2018. Motion Martin, seconded Chubinski to approve the following resolution: WHEREAS, the Board of Trustees is in receipt of an Election of DROP Account Distributions from Wayne Thompson requesting the distribution be effective on May 17, 2018, 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, a Letter of Understanding between the City of Battle Creek and IAFF Local 335, and the DROP program, and WHEREAS, the original Application for Deferred Retirement Option Plan by Wayne Thompson required he participate in the program until 7/12/2018, and RESOLVED, that Wayne Thompson II shall exit the DROP program effective May 17, 2018 and shall pay the required penalty for early exit, and RESOLVED, the service retirement benefit for Wayne Thompson shall commence as of 5/17/2018, and RESOLVED, the gross monthly benefit is $3,656.20 subject to tax withholdings and any other elective deductions, and May 14, 2018 Page 2 of 3 - Official RESOLVED, the partial payment for 15 days in May is $1,769.13 to be paid on 6/1/18 and the regular gross monthly benefit shall begin 7/1/2018. On a voice vote, motion carried. Chubinski – no report. Martin – no report. Newman – no report. Old Business Public Act 202 of 2017 – letter not yet drafted. Cost for Administrative Functions – Agreement 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 presented. Motion Bagwell, seconded Chubinski to accept the proposal for administrative services. On a voice vote, motion carried. New Business PMFA Update – report provided as PMFA not available due to the rescheduling of our regular meeting. Portfolio time weighted return (TWR) net of fees year to date through 4/30/18 is - 0.52%, which is slightly better than the blended benchmark of -0.90%. All asset managers except Lazard International Equity and Robeco Boston Partners Small Cap Value outperformed their respective benchmark. Fiscal year to date TWR as of 4/30/18 is 5.83%, annualized to 7.04%. PMFA recommended raising cash to cover future expenses and benefit payments through six months. Motion Budrow-Bradstreet, seconded Martin to approve the recommendation as presented by PMFA to raise cash. On a voice vote, motion carried. Public Comment – Tracie Tomak is running for District Judge. Ms. Tomak gave a brief summary of her background and her commitment to the position should she be elected. Linda Morrison commented on the budget workshop with City Commission held 5/2/18. The millage proposal for fiscal year 2018/19 is to leave the total millage rate the same; there is an increase in P&F millage rate with a corresponding decrease in the general operating millage. Commissioner Simmons had questions regarding the P&F portfolio and funding to which Linda responded. Motion Martin, seconded Bagwell to convene into closed session to discuss current applications for disability retirement (10:55 a.m.). On a voice vote, motion carried. Board returned to open session (11:45 a.m.) Motion Martin, seconded Budrow-Bradstreet approve the application for Maxson non-duty disability. On a voice vote, motion denied. Motion Chubinski, seconded Bagwell to allow the Chair to appoint, on behalf of the Board, a physician as IME for the pending Maxson application for disability based on whomever can May 14, 2018 Page 3 of 3 - Official schedule and provide the required report in the most timely fashion. On a voice vote, motion carried. Next regular meeting: Monday, June 18, 2018 at 10:00 a.m. Meeting adjourned at 11:59 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature