Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: August 15, 2018 CITY HALL, ROOM 112 TIME: 10:03 A.M. Present: Doug Bagwell, Gail Budrow-Bradstreet, Stan Chubinski, Jake Martin. Absent: none. Also Present: Dori Drayton and Justin Cohen of Plante Moran Financial Advisors (PMFA); Linda Morrison, Finance Director; Nancy Mullett, Labor Attorney; Tammy Giannunzio, Deputy Treasurer; and Kourtney Matuschka, Finance Officer. Vice Chair Chubinski 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 and closed session on July 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 7/31/18 the market value of the portfolio was $146,449,084, a gain of $2,387,249 since 6/30/18. As of today, the portfolio market value is $146,192,332, which is a loss of $256,752 since the prior month end. Motion Bagwell, seconded Martin to accept the financial report as submitted. On a voice vote, motion carried. Board Reports Bagwell – none. Budrow-Bradstreet:  New hires: Fire Department: Kyle Williams, 7/30/18, Brock Howland, 7/30/18 and Steven Foster, 7/31/18.  Erick Hegelmann (PD) terminated effective 3/7/18. A letter regarding his options for withdrawal was sent 8/13/18.  Former member, Daniel Wilkins, requested withdrawal of his contributions. On 7/6/18 lump sum payment of $1,295.29 was issued. There was no interest earned.  Surviving spouse Barbara Ruecker died 7/14/18. The full benefit payment paid 8/1 was pulled back; final payment of $764.12 for 14 days in July was paid 8/7/18. Motion Bagwell, seconded Martin to approve the following resolutions: MARK DEVRIENDT: WHEREAS, the Board of Trustees received an application for duty disability retirement from Mark A. Devriendt on 2/13/2018, and WHEREAS, it was determined by independent medical examination that Mark A. Devriendt, shall be deemed unable to perform the duties of Fire Fighter making him eligible for retirement pursuant to Section 6(2)(d), Act 345 of the Public Acts of 1937, as amended, and August 15, 2018 Page 2 of 4 - Official WHEREAS, his benefit pursuant to Section 6(2)(d), Act 345 of the Public Acts of 1937, as amended, shall be 50% of his final average compensation, RESOLVED, that the application of Mark A. Devriendt for duty disability retirement is approved, and RESOLVED, the retirement benefit for Mark A. Devriendt shall commence as of 2/14/2018, and RESOLVED, the gross monthly benefit payable to age 55 is $3,099.10, less all Workers Compensation payments, subject to tax withholdings and any other elective deductions, and RESOLVED, upon reaching age 55, Mark A. Devriendt shall receive a disability retirement pension computed according to Section 6(1)(e) of Act 345 of the Public Acts of 1937, as amended, and RESOLVED, the gross retroactive payment of $17,155.73 less workers compensation benefits of $9,643.92 will be paid on or about 8/17/2018 (net payment $7,511.81) and the regular gross monthly benefit, less Workers Compensation offset, shall begin 9/01/2018. DOUGLAS BETTS: WHEREAS, the Board of Trustees is in receipt of an application for retirement from Douglas A. Betts requesting an effective retirement date of 7/1/2018, and WHEREAS, Douglas A. Betts 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, Douglas A. Betts elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Douglas A. Betts for retirement is approved, and RESOLVED, the retirement benefit for Douglas A. Betts shall commence as of 7/01/2018, and RESOLVED, the gross monthly benefit is $3,508.07 subject to tax withholdings and any other elective deductions, and RESOLVED, the regular gross monthly benefit shall begin 8/01/2018. BRETT W. WEISS WHEREAS, the Board of Trustees is in receipt of an application for retirement from Brett W. Weiss requesting an effective retirement date of 6/15/2018, and WHEREAS, Brett W. Weiss 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, Brett W. Weiss elected straight life with 60% surviving spouse benefit, therefore be it August 15, 2018 Page 3 of 4 - Official RESOLVED, that the application of Brett W. Weiss for retirement is approved, and RESOLVED, the retirement benefit for Brett W. Weiss shall commence as of 6/15/2018, and RESOLVED, the gross monthly benefit is $6,870.20 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $3,664.11 for 16 days in June was paid on 7/06/2018 and the regular gross monthly benefit shall begin 8/01/2018. JEFFREY S. MAXSON: WHEREAS, the Board of Trustees received an application for non-duty disability retirement from Jeffrey S. Maxson on 3/15/2018, and WHEREAS, it was determined by independent medical examination that Jeffrey S. Maxson, shall be deemed unable to perform the duties of Fire Fighter making him eligible for retirement pursuant to Section 6(2)(e), Act 345 of the Public Acts of 1937, as amended, and WHEREAS, the final actuarial calculation has been received, and WHEREAS, Jeffrey S. Maxson is 57 years of age making him eligible for retirement benefits pursuant to Section 6(1)(e), Act 345 of the Public Acts of 1937, as amended, and WHEREAS, Jeffrey S. Maxson elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Jeffrey S. Maxson for non-duty disability retirement is approved, and RESOLVED, the retirement benefit for Jeffrey S. Maxson shall commence as of 3/22/2018 pursuant to the City of Battle Creek Policemen and Firemen Retirement System Disability Retirement Policy, and RESOLVED, the gross monthly benefit is $3,919.26 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $13,022.06 for 10 days in March and full benefit payments for April through June was paid on 7/05/2018 and the regular gross monthly benefit shall begin 8/01/2018. On a voice vote, motion carried. Chubinski – none. Martin – possible Fire Chief to be hired soon. Old Business Disability Policy review – Board questions regarding possible policy changes sent to legal counsel. Based on response from Frank Judd of VanOverbeke, Michaud and Timmony, draft revisions to policy presented. Motion Bagwell, seconded Martin to approve changes to the Disability Retirement Policy as presented. On a voice vote, motion carried. Signatory Authority – Comerica, Investment Managers & PMFA – Authorized signers for all current asset managers and custodian (Comerica) updated. August 15, 2018 Page 4 of 4 - Official New Business Board Changes: Effective 8/9/18 Chairman Joseph Newman resigned from the Board. Morrison will work on finding a replacement. Motion Budrow-Bradstreet, seconded Bagwell to accept his resignation effective 8/9/18. On a voice vote, motion carried. Budrow- Bradstreet is retiring. Effective 8/22/18 Tammy L. Giannunzio is the City Treasurer and shall take on all Board duties pursuant to PA 345 of 1937, as amended. With the resignation of Chair Newman, Vice Chair Chubinski shall take on the duties as Chair by default. MAPERS Fall Conference: Conference information provided along with Education and Travel Policy. Board members will review schedules. PMFA Update – Drayton gave a general market update. Portfolio is comprised of active and passive management. Illustration provided showing when active versus passive management has been favorable. Previously favored active management, trending down to passive. Short term and long term bond returns are approximately the same when the yield curve is flattening. Strong probability of interest rate increases in 2018. Quarterly market overview with active management versus the index returns, and manager returns and performance versus asset allocation and target returns reviewed with the Board. Detail for each manager also provided with performance compared to index. Time weighted returns as follows:  Calendar year to date through 7/31/18 – 2.41%; benchmark 1.88%; annualized to 4.19%;  Fiscal year to date through 7/31/18 – 1.93%; benchmark 1.73%; annualized to 22.44%.  No recommended change in asset allocation. Public Comment – none. Next regular meeting: Monday, September 17, 2018 at 10:00 a.m. Meeting adjourned at 11:19 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ _________________________________ Board Member signature Board Member signature