Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: July 16, 2018 CITY HALL, ROOM 112 TIME: 10:08 A.M. Present: Gail Budrow-Bradstreet, Stan Chubinski, Jake Martin and Joe Newman. Absent: Doug Bagwell (excused). Also Present: Dori Drayton and Trevor Lloyd of Plante Moran Financial Advisors (PMFA); Tammy Giannunzio, Deputy Treasurer; and Kourtney Matuschka, Finance Officer. Chair Newman asked for approval of the agenda. Motion Chubinski, seconded Martin to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting and closed session on June 18, 2018. Motion Budrow-Bradstreet, 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 6/30/18 the market value of the portfolio was $144,061,835, a loss of $360,681 since 5/31/18. As of today, the portfolio market value is $146,479,266, which is a gain of $2,417,431 since the prior month end. On June 25, 2018 the quarterly employer contribution of $1,302,721.21 was deposited. Motion Chubinski, seconded Martin to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Budrow-Bradstreet:  New hires in Police Department: Everett Lanhpar on 5/28/18; Carl VanDyke (rehire) on 6/18/18; Melanie Montean on 7/8/18; and Shamiyha Robinson on 7/9/18.  Member Kathleen Chrenenko request to purchase 12 months military service credit was approved by City Commission on 6/19/18. The total cost is $30,610.06. Chrenenko’s portion is $8,189.65 pursuant to PA 345.  Carl VanDyke returned to work for the City of Battle Creek on 6/18/18 and repaid the contributions previously withdrawn - $11,478.11 plus interest of $298.41. This action reinstates his prior service credit of 2 years, 7 months, 23 days. Chubinski – none. Martin – three new hires are pending. Newman – none. Old Business Public Act 202 of 2017 – instructed Budrow-Bradstreet to finalize a mailing to the City’s lobbyist. Disability Policy review – still under consideration. Budrow-Bradstreet and Matuschka to provide some examples with situational timeline to illustrate how the policy is somewhat July 16, 2018 Page 2 of 3 - Official unclear [as to the date a member’s disability retirement may start] based on the current policy language. Agreement for Legal Representation – presented Board with letter from Vanoverbeke, Michaud & Timmony regarding rate increase and formal agreement for services. Agreement was reviewed by City’s labor attorney who found nothing out of the ordinary nor had any concerns on our behalf. Motion Martin, seconded Chubinski to enter into the agreement for legal representation by Vanoverbeke, Michaud and Timmony, P.C. Motion carried. New Business Signatory Authority – Comerica, Investment Managers & PMFA – suggested all Board members be signers; Giannunzio to be Treasurer; Matuschka to be recording secretary. PMFA will check with Comerica about Matuschka as authorized signer except for purposes of the actual investment accounts and directing any cash or investment changes. Matuschka shall be authorized to sign invoices, process all retiree set up and changes, and direct Comerica regarding deposit of member or retiree contributions and withdrawals. Disability Retirement Policy – this item not on the agenda but was brought up for discussion regarding other concerns.  requirements for re-examination: Chair recommended the Board review the list of disability retirees on an annual basis at which time the Board shall decide upon re-examination on a case-by-case basis; board agreed.  requirements regarding workers compensation status: can P&F Board deny a duty disability retirement based on status of workers compensation? Can P&F Board require member to exhaust all workers compensation benefits before he/she begins to receive duty disability retirement benefits? Board directed Budrow-Bradstreet to check with legal counsel; will report back for possible policy revisions. Comerica/Globe Tax Services – Board notified by Comerica of tax reclaim money from Globe Tax Services. Budrow-Bradstreet will get revised power of attorney forms and submit for possible recovery of funds. 2018-2019 Budget Amendment – presented an amended budget for 2018/19. The original budget excluded the administration fee of $8,000. Motion Chubinski, seconded Martin to accept the 2018-19 budget amendment as presented. On a voice vote, motion carried. PMFA Update – Drayton provided a summary of market conditions. Report from PMFA illustrated consumer confidence and personal consumption, which is up since 2009. Other highlights: housing starts in May surged to 11 year high and unemployment at an 18 year low (3.8%). Total portfolio – Time weighted return (TWR) calendar year to date (net of fees) is up 0.48%, which outperformed the benchmark of 0.15%. Large cap growth stocks did very well due to a concentration in internet stocks (Facebook, Amazon, Netflix and Google). Fiscal year to date TWR through 6/30/18: 6.89% outperforming the blended core benchmark of 6.73%. Public Comment – none. July 16, 2018 Page 3 of 3 - Official Motion Martin, seconded Budrow-Bradstreet to convene into closed session to discuss current applications for disability retirement (11:03 a.m.). On a voice vote, motion carried. Board returned to open session (11:27 p.m.) Motion Martin, seconded Chubinski to approve Mark DeVriendt’s application for duty disability retirement. On a roll call vote: Budrow-Bradstreet – yes; Chubinski – yes; Martin – yes; Newman – no. Motion carried. Next regular meeting: Monday, August 15, 2018 at 10:00 a.m. Meeting adjourned at 11:30 a.m. Respectfully submitted, Gail Budrow-Bradstreet, City Treasurer __________________________________ _________________________________ Board Member signature Board Member signature