Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: November 18, 2019 CITY HALL, ROOM 302A TIME: 10:00 A.M. Present: Stan Chubinski, Tammy Giannunzio, Ed Guzzo and Jake Martin. Absent: Doug Bagwell Also Present: Jeremy Tollas, Justin Cohen & Eric Dahlberg 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 Martin, seconded Giannunzio to approve the agenda. On a voice vote, motion carried. Presented minutes of the regular meeting on October 21, 2019. Motion Giannunzio, seconded Guzzo to approve the minutes as presented. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: At the 10/21/2019 meeting, the 9/30/2019 market value of the portfolio reported to be $150,400,551. An updated statement was published, reflecting the 9/30/2019 market value of the portfolio to be $150,458,570. As of 10/31/2019, the market value of the portfolio was $152,305,075, a gain of $1,846,505 over the revised 9/30/2019 balance. As of 11/14/2019, the portfolio market value was $153,024,679, which is a gain of $719,604 since 10/31/2019. For the month of October, the following invoices were authorized by Giannunzio and paid from the Cash Account: Auditing Fees 7,300.00 Custodian Fees* 17,730.03 Medical Fees 550.00 Training/Travel 396.61 *Custodian Fees were not approved by Giannunzio. Invoices are quarterly bank charges deducted directly by Comerica Bank. Motion Guzzo, seconded Giannunzio to accept the financial report and quarterly bank summary as submitted. On a voice vote, motion carried. Board Reports Chubinski – none. Giannunzio – none. Guzzo – none. Martin – none. Matuschka November 18, 2019 Page 2 of 4 - Official  Surviving Spouse, Donna Spaulding died 10/26/19. Reversed 11/1/19 payment and replaced with a prorated final benefit payment of $603.87 (for 26 days in October) paid 11/12/19.  Surviving Spouse, Martha Laupp died 10/23/19. Reversed 11/1/19 payment and replaced with a prorated final benefit payment of $1,224.68 (for 23 days in October) paid 11/13/19.  Scott Barnes, Fire Lieutenant purchased 12 months of military time. The City Commission approved this purchase at 10/15/19 meeting. The total cost of this purchase was $30,059.02, his portion paid from his ICMA account totaled $8,453.13 and the remaining balance of $21,605.89 is the cost to the pension fund.  Tanya Wilt, Police Officer, resigned effective 5/3/19, withdrew her contributions including interest totaling $47,116.62 paid 10/11/19.  The following resolutions need approved: KIMBERLEE E. TUYLS WHEREAS, the Board of Trustees is in receipt of an application for retirement from Kimberlee E. Tuyls requesting an effective retirement date of 8/10/19, and WHEREAS, Kimberlee E. Tuyls is eligible for retirement based on her 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, Kimberlee E. Tuyls elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Kimberlee E. Tuyls for retirement is approved, and RESOLVED, the retirement benefit for Kimberlee E. Tuyls shall commence as of 8/10/19, and RESOLVED, the gross monthly benefit is $4,383.64 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $3,110.97 for 22 days in August was paid on 9/1/19 and the regular gross monthly benefit shall begin 10/1/19. MATTHEW R. ROBINSON WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from Matthew R. Robinson requesting an effective retirement date of 8/22/19, and WHEREAS, Matthew R. Robinson 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, Matthew R. Robinson elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Matthew R. Robinson for participation in the DROP is approved, and RESOLVED, the DROP benefit for Matthew R. Robinson shall commence as of 8/22/19, and RESOLVED, the gross monthly retirement benefit is $7,476.12 and shall be Matthew R. Robinson’s DROP benefit credited monthly to his DROP account and November 18, 2019 Page 3 of 4 - Official RESOLVED, Matthew R. Robinson’s participation in the DROP shall terminate on 8/21/22. Motion Martin, seconded Guzzo to accept the retirement resolution for Kimberlee E. Tuyls and DROP resolution for Matthew R. Robinson. On a voice vote, motion carried. New Business Request for Withdrawal Form Revision: Revision made to add a secondary plan for rollover options. Since contributions are now deducted on a pre-tax basis, members may want to rollover pre-tax contributions into a pre-tax retirement account and their after tax contributions into an after tax retirement account. The current form only allowed space for one plan option for rollover information. Giannunzio recommended one formatting revision. Motion Martin, seconded Giannunzio to accept the revised Request for Withdrawal Form with the one noted revision. One a voice vote, motion carried. Tax Reclaims: Matuschka shared email from Comerica Bank regarding tax reclaims. Board requested to reach out to legal counsel for approval. Will update at next meeting. Legal Case Updates: Matuschka shared email from legal counsel stating they will automatically provide updates on cases pertaining to retirement board issues, as part of their contract with the Board. The Board has an option to opt out of future notices and the fees associated with such updates. The Board is comfortable with receiving all updates and requested updates be reported during Board meetings. Investment Policy: Tabled until next meeting, PMFA is working on a new draft. Matuschka will forward questions on current policy to PMFA before next meeting. Responsibilities of the Board should be addressed in the new policy. PMFA – Asset Manager Portfolio Update: Tollas provided the Board with quarterly reports, an equity update and fund recommendations.  Reviewed market overview by asset class as of 9/30/2019.  No need to raise cash and no rebalancing required.  Total portfolio return year to date through 9/30/19 is 13.12%, more favorable than 4.33% for the last 12 months due to 4th quarter of 2018. Dahlberg – Discussed the review of Boston Company and Robeco Large Cap Value.  Boston Company was added to portfolio about 4 years ago and has remained very close to the Russell Growth Index. Stock selection is critical for performance and sector selection impacts performance. If they have too many investments in one sector such as, technology or health care for example.  Robeco LCV – trading cheaply and provides business momentum. Health care sectors have been a group that has pulled down returns for Robeco LCV.  Both groups have been evaluated by PMFA. On an annual basis, PMFA reviews their recommended managers versus other investment managers. If there is a material change, PMFA will report immediately and not wait until annual review by classification. Unless something material has changed, one year of negative returns November 18, 2019 Page 4 of 4 - Official may not lead to a change but 3 years is typical breaking point for changing an investment manager. Dahlberg suggested transitioning to Loomis Sayles Large Cap Growth from Boston Company/Mellon.  Loomis LCV reduced manager fee to .575 compared to .55 with Boston/Mellon.  3 years rolling back, Loomis has outperformed Boston/Mellon.  Loomis has outperformed over time and is also more conservative than Winslow and Boston/Mellon.  Loomis LCV is PMFA’s primary recommendation to transfer funds from Boston/Mellon.  Suggested Board to review Loomis’ information and discuss change at December meeting.  PMFA does not recommend a change to Robeco LCV at this time due to their short- term issues. Cohen shared PMFA has converted to new software called Black Diamond Portfolio Software. The Board will see a new format to future presentation of materials. The Board will also have access to up-to-date figures online. Public Comment – none. Next regular meeting: Monday, December 16, 2019 at 10:00 a.m. Motion Martin, seconded Giannunzio to convene into closed session to discuss re- examination results for disability retirement (11:38 a.m.). On a voice vote motion carried. Board returned from closed session at 11:42 a.m. Motion Martin, seconded Giannuzio to accept the medical examiner’s report and continued disability retirement for Nichole Harrell. On a voice vote, motion carried. Meeting adjourned at 11:43 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature