Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: April 24, 2019 CITY HALL, ROOM 302A TIME: 10:01 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio and Jake Martin. Absent: Ed Guzzo Also Present: Jeremy Tollas of Plante Moran Financial Advisors (PMFA); and Kourtney Matuschka, Finance Officer/Police & Fire Retirement System Administrator. Chair Chubinski 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 March 26, 2019. Motion Martin, seconded Giannunzio to approve the minutes as presented. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 3/31/2019, the market value of the portfolio was $146,349,058.99, a gain of $1,830,346.54 since 2/28/2019. As of 4/17/2019, the portfolio market value was $148,134,874.45, which is a gain of $1,785,815.46 since 3/31/2019. For the month of March, the following invoices were authorized by Giannunzio and paid from the Cash Account: Cash Account - Detail Amount Administrative Fee 2,000.00 Motion Martin, seconded Giannunzio to accept the financial report and quarterly bank summary as submitted. On a voice vote, motion carried. Board Reports Bagwell – hiring 3 cadets effective 7/1/19. Chubinski – none. Giannunzio – none. Martin – none. Matuschka  Bradley Duck, Police Officer/Corporal, retired effective 4/10/19.  Clay Hoggard, Police Officer, resigned effective 3/15/19. A letter regarding his options for withdrawal was sent 3/29/19.  Zachary Burgess, Police Officer, resigned effective 3/29/19. A letter regarding his options for withdrawal was sent 4/15/19.  The following resolutions need approved: April 24, 2019 Page 2 of 3 - Official MICHAEL D. BRADLEY WHEREAS, the Board of Trustees is in receipt of an application for retirement from Michael D. Bradley requesting an effective retirement date of 2/2/2019, and WHEREAS, Michael D. Bradley is eligible for retirement based on his service 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, Michael D. Bradley elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Michael D. Bradley for retirement is approved, and RESOLVED, the retirement benefit for Michael D. Bradley shall commence as of 2/2/2019, and RESOLVED, the gross monthly benefit is $7,729.17 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $7,453.13 for 27 days in February was paid on 3/1/2019 and the regular gross monthly benefit shall begin 4/1/2019. CARL TURNER WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from Carl Turner requesting an effective retirement date of 1/13/2019, and WHEREAS, Carl Turner 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, Carl Turner elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Carl Turner for participation in the DROP is approved, and RESOLVED, the DROP benefit for Carl Turner shall commence as of 1/13/2019, and RESOLVED, the gross monthly retirement benefit is $4,816.99 and shall be Carl Turner’s DROP benefit credited monthly to his DROP account and RESOLVED, Carl Turner’s participation in the DROP shall terminate on 11/19/2022. MICHAEL L. REESE WHEREAS, the Board of Trustees is in receipt of an application for vested retirement benefits from Michael L. Reese requesting an effective retirement date of 1/19/2019, and WHEREAS, Michael L. Reese is eligible for retirement based on his deferred benefits, credited years of service and having reached what would have been 25 years of service 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, April 24, 2019 Page 3 of 3 - Official WHEREAS, Michael L. Reese elected option A with 100% surviving spouse benefit, therefore be it RESOLVED, that the application of Michael L. Reese for retirement is approved, and RESOLVED, the retirement benefit for Michael L. Reese shall commence as of 1/19/2019, and RESOLVED, the gross monthly benefit is $1,190.42 subject to tax withholdings, and RESOLVED, an overpayment of $409.37 for payments dated 2/1 – 5/1/2019 for straight life benefit payments will be reduced from 6/1/2019 payment resulting in a gross benefit payment of $781.05 and the regular gross monthly benefit of $1,190.42 shall begin 7/1/2019. Motion Bagwell, seconded Martin to approve the resolutions for Michael D. Bradley, Carl Turner and Michael L. Reese, on a voice vote, motion carried. New Business PMFA – Asset Manager Portfolio Update: Tollas presented the monthly overview of the portfolio as of 3/31/2019.  ISM Manufacturing Index increased 1.1% in March.  Pre-election years have historically shown strong returns. The average return during pre-election years since 1943 has been about 12%.  Boston Company – Former portfolio manager took a new position and new manager is Lee Todd. Portfolio managers supervise the analysts and manage inflow/outflows. Managers do not make purchases for the portfolio. PMFA had a phone call to discuss change and has no concerns.  Returns for the total portfolio thru 3/31/2019 were 8.35%, compared to the blended benchmark of 8.43%.  Time weighted returns as follows: o Calendar year to date through 4/16/19: 9.87% in comparison to benchmark of 9.86%. o Fiscal year to date through 4/16/19: 4.70% in comparison to benchmark of 5.28%, annualized to 5.95%; benchmark 6.69%.  No rebalancing needed at this time and overall the 1st quarter of 2019 was very strong Public Comment – Next regular meeting: May 13, 2019 at 10:00 a.m. Meeting adjourned at 10:31 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature