Police & Fire Pension

POLICE & FIRE PENSION BOARD MEETING DATE: September 21, 2020 Electronic Zoom Meeting TIME: 10:00 A.M. Present: Doug Bagwell, Stan Chubinski, Tammy Giannunzio, Ed Guzzo & Jake Martin. Also Present: Justin Cohen, Dori Drayton, & Jeremy Tollas of Plante Moran Financial Advisors (PMFA)/CAPTRUST; Linda Morrison, Revenue Services Director; Sarah VanWormer, IT Director; Jessica Vanderkolk, Communications Manager; Nancy Mullett, Labor Attorney 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 August 17, 2020. Motion Guzzo, seconded Giannunzio to approve the regular session minutes. On a voice vote, motion carried. Bank Summary of Assets & Expense Report: As of 8/31/2020, the market value of the portfolio was $165,387,442, a gain of $4,340,423 from the 7/31/2020 balance. As of 9/17/2020, the portfolio market value was $163,723,442, which is a loss of $1,664,000 since 8/31/2020. For the month of August, the following expenses were authorized for payment. Additional Expense Type Payee Amount Frequency Details Investment Fees Loomis Sayles & Co 24,546.06 Quarterly 4/1 - 6/30/20 Investment Fees Harding Loevner International 31,727.00 Quarterly 7/1 - 9/30/20 Investment Fees Richmond Capital Management 2,455.00 Quarterly 4/1 - 6/30/20 Investment Fees Robeco Boston Partners SCV 17,498.50 Quarterly 4/1 - 6/30/20 Investment Fees Westfield Capital Management 17,463.31 Quarterly 4/1 - 6/30/20 Investment Fees Lazard Intl Equity 12,924.59 Quarterly 7/1 - 9/30/20 Investment Fees Robeco Boston Partners LCV 13,180.54 Quarterly 4/1 - 6/30/20 Investment Fees Earnest Partners Intermediate 13,551.31 Quarterly 4/1 - 6/30/20 Total Investment Fees 133,346.31 Misc Fees (asset manager) Misc Admin fees - non investment 939.68 Monthly 8/1 - 8/31/20 Invoice Fee Comerica Bank 249.35 Quarterly 4/1 - 6/30/20 Total Admin. Fees 1,189.03 Motion Bagwell, seconded Guzzo to accept the financial report and quarterly bank summary as submitted. On a voice vote, motion carried. September 21, 2020 Page 2 of 5 - Official Board Reports Bagwell – last meeting as Board Member, December 2020. Chubinski – none. Giannunzio – none. Guzzo – none. Martin – none. Matuschka  Michael McKenzie, Emergency Services Administrator purchased 12 months of military time. The City Commission approved this purchase at the 8/18/20 meeting. The total cost of this purchase was $27,729.40, his portion totaled $8,318.56 and the remaining balance of $19,410.84 is the cost to the pension fund.  Mark Kusler, Police Officer retired 8/22/20.  Walter Hardy, Firefighter entered the IAFF DROP program effective 9/8/20.  The following resolutions need approved: RE: Jennifer Katherine Wolf v. Craig Nolan Wolf Calhoun County Circuit Court – Case No. 19-299-DM WHEREAS, the Board of Trustees is in receipt of an Amended Eligible Domestic Relations Order (“EDRO”) dated March 3, 2020, wherein the Alternate Payee, Jennifer Katherine Wolf, is awarded certain rights to the benefits of the Participant, Craig Nolan Wolf, and WHEREAS, the Alternate Payee is entitled to a portion of the Participant’s retirement benefit from the Pension System, including both the defined benefit and defined contribution plans of the Pension System, and WHEREAS, the payments from the plan to the Alternate Payee shall begin when the Participant commences benefits from the Pension System, unless the Alternate Payee elects to receive benefits at any time after the Participant reaches his earliest retirement date, and WHEREAS, the Board’s policy is to require that the cost for the actuary’s calculations are to be borne by the parties to the domestic relations proceedings, and the order provides that the Participant and the Alternate Payee shall be responsible for any and all additional costs, and that the Alternate Payee’s share of said costs shall be in proportion to her share of the Participant’s retirement allowance awarded to her under the EDRO, and WHEREAS, said matter had been discussed with legal counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Pension System and applicable law including Public Act 46 of 1991 (MCLA 38.1701) as amended, therefore be it RESOLVED, that the Board acknowledges receipt of said court order, will pay pension benefits consistent with said order subject to an application being filed by either the Participant or the Alternate Payee to commence benefits, and further RESOLVED, that upon application of either the Participant or the Alternate Payee this file be forwarded to the Board’s actuary for calculation of the benefits, and further September 21, 2020 Page 3 of 5 - Official RESOLVED, that a copy of this resolution be immediately attached as the top sheet of the pension file and other appropriate records be kept for the Pension System relative to this matter, and further RESOLVED, that copies of this resolution be sent to Craig Nolan Wolf, the Participant; Eric L. Pazner, Esq., attorney for the Participant; Jennifer Katherine Wolf, the Alternate Payee; John B. Sullivan, Esq., attorney for the Alternate Payee and the Board’s actuary. BRAD M. WISE WHEREAS, the Board of Trustees is in receipt of an application for participation in the Deferred Retirement Option Plan (DROP) from Brad M. Wise requesting an effective retirement date of 7/1/2020, and WHEREAS, Brad M. Wise 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 non-represented group, and WHEREAS, the final actuarial calculation was received, and WHEREAS, Brad M. Wise elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Brad M. Wise for participation in the DROP is approved, and RESOLVED, the DROP benefit for Brad M. Wise shall commence as of 7/1/2020, and RESOLVED, the gross monthly retirement benefit is $5,415.85 and shall be Brad M. Wise’s DROP benefit credited monthly to his DROP account and RESOLVED, Brad M. Wise’s participation in the DROP shall terminate on 6/30/2022. BRIAN L. BARTZEN WHEREAS, the Board of Trustees is in receipt of an application for retirement from Brian L. Bartzen requesting an effective retirement date of 7/7/20, and WHEREAS, Brian L. Bartzen 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, Brian L. Bartzen elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Brian L. Bartzen for retirement is approved, and RESOLVED, the retirement benefit for Brian L. Bartzen shall commence as of 7/7/20, and RESOLVED, the gross monthly benefit is $5,577.49 subject to tax withholdings and any other elective deductions, and September 21, 2020 Page 4 of 5 - Official RESOLVED, an adjustment of $4.61 for benefit payments dated 8/6 – 9/1/20 will be added to 10/1/20 payment resulting in a gross benefit payment of $5,582.10 and the regular gross monthly benefit of $5,577.49 shall begin 11/1/20. JULIE D. MADSEN WHEREAS, the Board of Trustees is in receipt of an application for retirement from Julie D. Madsen requesting an effective retirement date of 6/13/20, and WHEREAS, Julie D. Madsen 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, Julie D. Madsen elected straight life with 60% surviving spouse benefit, therefore be it RESOLVED, that the application of Julie D. Madsen for retirement is approved, and RESOLVED, the retirement benefit for Julie D. Madsen shall commence as of 6/13/20, and RESOLVED, the gross monthly benefit is $6,156.75 subject to tax withholdings and any other elective deductions, and RESOLVED, the gross retroactive payment of $3,694.05 for 18 days in June was paid on 7/1/20 and the regular gross monthly benefit shall begin 8/1/20. Motion Bagwell, seconded Martin to accept the EDRO resolution for Jennifer and Craig Wolf. On a voice vote, motion carried. Motion Martin, seconded Bagwell to accept the retirement resolutions for Brian Bartzen and Julie Madsen and the DROP resolution for Brad Wise. On a voice vote, motion carried. New Business PMFA/CAPTRUST – Asset Manager Portfolio Update: Tollas presented an update on the economic status.  2nd quarter GDP declined to 32%, 3rd quarter is expected to improve.  Manufacturing Index continues expansionary territory.  Household savings increase because of enhanced unemployment benefits and stimulus payments.  Historically, elections have little impact on long-term returns. Expect to see long-term growth regardless of who takes office.  Historically, stocks perform better with a split Congress vs. single-party control.  Barclays Aggregate up 6.9% and S&P 500 up 9.7% for the year thru 8/31/20. Cohen presented the monthly review of the portfolio.  Portfolio is up 7.39% through 8/31/20 vs benchmark of 6.8% September 21, 2020 Page 5 of 5 - Official  July and August make up the majority of year to date gains.  No need for rebalancing at this time. Public Comment – none. Next regular meeting: Wednesday October 21, 2020 at 10:00 a.m. Meeting adjourned at 10:33 a.m. Respectfully submitted, Kourtney Matuschka, Recording Secretary __________________________________ __________________________________ Board Member signature Board Member signature