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Retirement Board

Regular Meeting

Royal Oak, MI · May 1, 2026

AgendaMinutes

Minutes

Minutes Retirement Board Meeting May 1, 2026, 9:30 a.m. City Hall, Room 122 203 S. Troy Street Royal Oak, Michigan 48067 Present: Lee Collick - Chairperson Zachary Meckl – Vice Chairperson Monica Hunt - Trustee Nic Grochowski – Interim City Manager Tony DeCamp – Assistant Finance Director Lisa Genord – Financial Analyst / Pension Technician Rebecca Chase – Senior Accountant Tom Michaud – VanOverbeke, Michaud, & Timmony, P.C. Florence Mwaura – SEI Investments Chris Pettia – SEI Investments (via conference call) Absent: Amanda Herzog - Trustee _____________________________________________________________________ 1. Call to Order The meeting was called to order at 10:05 a.m. 2. Public Comment None 3. Approval of Agenda Resolution Number: Approve the agenda for May 1, 2026. Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted 4. Approval of Minutes Resolution Number: Approve the draft meeting minutes for February 6, 2026 as presented. Moved by: Lee Collick Seconded by: Zachary Meckl 1 Motion Adopted 5. Consideration for Approval - Adjustments / Applications / Benefits a. Adjustments: Jason Paulick EDRO; Daniel Adorjan Service Purchase b. Applications: Daniel Starrs, Jeffrey D. Carroll, Mark Finitzer, Bruce Handrinos. c. Benefits: Timothy S. Brown Resolution Number: Approve the adjustments, applications and benefits as presented. Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted 6. Investments SEI investment report presented by Florence Mwaura of SEI Investments Market value/allocation of assets as of March 31, 2026, equaled $176,677,528 One-month performance (except core property) – total portfolio outperformed benchmark: -4.66% return vs. -4.78% index. Three-month performance – total portfolio underperformed the benchmark: - 1.24% return vs. -1.19% index. YTD performance - total portfolio underperformed the benchmark: -1.24% return vs. -1.19% index Fiscal YTD performance – total portfolio underperformed the benchmark: 6.88% return vs. 7.34% index. One-year performance – total portfolio underperformed the benchmark: 14.26% return vs. 15.71% index. Three-year performance – total portfolio outperformed the benchmark: 12.22% return vs. 11.84% index. Five-year performance – total portfolio outperformed the benchmark: 6.94% return vs. 6.27% index. Inception - total portfolio outperformed the benchmark: 7.92% return vs. 7.24% index 2 Florence provided the following update on the city’s portfolio as well as on broad market performance:  Calendar-to-date the portfolio was slightly negative in an eventful quarter, with geo-politics, AI disruption and private credit issues with particular concern on software companies, contributed to volatility during the quarter.  Financial markets were mostly flat in the quarter, except for commodities and inflation-linked bonds.  The Iran War of 2026 has had a larger disruption than prior crises (20%) relative to global oil dependency.  SEI’s macro outlook has a higher inflation bias as the lasting effects of the war are likely to linger even with a quick resolution.  The city’s portfolio positioning is a good environment for active management with the portfolio value of $185.2M as of April 30, 2026. Chris Pettia (via conference call), SEI Head of Private Assets, explained SEI’s programmatic approach to building an allocation within private assets and also reviewed SEI GPA Funds V & VI in detail. Chris also commented on the on the US real estate market recovery which has had seven quarters in a row of positive returns. Chris stated that a new market cycle commenced, however, there is construction supply uncertainty due to tariffs. Florence stated that SEI added a disclosure on their presentation booklet and advised the board that it was acceptable to post their materials on the city website within the retirement board meeting agenda packets. Lee Collick, chairperson, stated that the board does not want any investment materials posted on the city website moving forward. Florence stated that the private asset target allocation was previously approved at 5%, however, it is currently at 3.1% with commitments to SEI GPA Funds V & VI (the board opted out of a commitment to GPA Fund VII), so Florence would like to understand boards desire for next steps and / or if the private asset allocation should be reduced within next Investment Policy Statement (IPS). Tom Michaud, retirement board attorney, suggested that Florence put together education for board / trustees on these private asset investments, their life cycle, and how the funds work from practical standpoint. Resolution Number: Receive and file all investment reports. Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted 7. Legal 3 a. State of Michigan PA 4 of 2023 – full exemption on pension income by the 2026 tax year. Tom Michaud, retirement board attorney, reviewed the historical tax changes regarding State of Michigan (SOM) Public Act 4 of 2023 and stated that public pensions for general and public safety retirees are non-taxable at the state level by calendar year 2026. Tom stated that administrators / staff should ensure that they provide the W-4P form upon request and refer retirees to personal advisors and SOM Treasury website for guidance on form completion. b. Disability Policy – Final Review and Adoption Tom stated that the board has reviewed the draft disability policy in the past, with two items remaining to be addressed and then be voted upon for adoption. The month for medical reexaminations of disability retirees – the board agreed to May, which has been past practice. Determine what the medical director is evaluating against –the board agreed to using the past practice, which has been the job description, in other words, can this person do the job based on their medical evaluation relative to job description. Resolution Number: Adopt the draft disability policy with the two discussed revisions. Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted Resolution Number: Receive and file all legal reports. Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted 8. Other a. Annual advisor and consultant review - Medical Director Tom Michaud, retirement board attorney, stated that the board could contact the current medical director to request their attendance at a future retirement board meeting to give a presentation to understand their process and the services provided. Tom also stated another option could be to issue a Request for Proposal (RFP) for medical director services To perform due diligence, the board agreed to have staff contact the current medical director to request a presentation of their services in-person at a retirement board meeting or via a brief video call. 4 Resolution Number: Receive and file the OMA Handbook - March 2026 Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted 9. Adjournment The next quarterly meeting is scheduled for 9:00 a.m. Friday, August 7, 2026, located in conference room # 122 at the City Hall Building at 203 S. Troy Street. The meeting was adjourned at 11:15 a.m. Moved by: Lee Collick Seconded by: Zachary Meckl Motion Adopted 5

Agenda

Agenda Retirement Board Meeting Friday, May 1, 2026, 9:30 a.m. City Hall, Room 122 203 S. Troy Street Royal Oak, Michigan 48067 Anyone planning to attend the meeting who has need of special assistance under the Americans with Disabilities Act (ADA) is asked to contact the city clerk’s office at 248-246-3050 at least two (2) business days prior to the meeting. 1. Call to Order 2. Public Comment 3. Approval of Agenda Request that the Board approve the agenda for May 1, 2026. 4. Approval of Minutes Request that the Board approve the draft meeting minutes for February 6, 2026. 5. Consideration for Approval - Adjustments / Applications / Benefits a. Adjustments 1. Jason Paulick - request for EDRO acceptance: WHEREAS, the Board of Trustees is in receipt of an Eligible Domestic Relations Order dated January 5, 2026, wherein Lindsey Catherine Paulick, the Alternate Payee, is awarded certain rights to the benefits of Jason Andrew Paulick, the Participant, and WHEREAS, the Alternate Payee is entitled to a portion of the Participant’s benefits from the Retirement System, which is subject to either the Participant or the Alternate Payee making an application for the same, and WHEREAS, the payments from the plan to the Alternate Payee shall begin either when the Participant commences benefits from the Retirement System, or any time after the Participant reaches his earliest retirement date upon either the Participant’s or the Alternate Payee’s application, and WHEREAS, the Board’s policy is to require that the cost for the actuary’s calculations is to be borne by the parties to the domestic relations proceedings, and the order provides that the Participant and the Alternate Payee shall equally share responsibility for any, and all, additional costs for actuarial services, and WHEREAS, said matter having been discussed with legal counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Retirement System and applicable law, therefore be it RESOLVED that the Board acknowledges receipt of said court order and will administer benefits consistent with said order upon application by the Participant or the Alternate Payee, and further RESOLVED that a copy of this Resolution be immediately attached as the top sheet of the Participant’s pension file and other appropriate records be retained by the Retirement System relative to this matter, and further RESOLVED that copies of this resolution be sent to Jason Andrew Paulick, the Participant; Lindsey Catherine Paulick, the Alternate Payee; Marcus B. Connor, Esq., attorney for the Alternate Payee; and the Board’s Actuary. 2. Daniel J. Adorjan of the Fire department, Fire bargaining unit, requests to purchase 4 years of service credit in the amount of $74,179. Request that the Board approve the service purchase of 4 years by Daniel J. Adorjan in the amount of $74,179. b. Applications 1. Daniel A. Starrs, Fire Lieutenant, Fire bargaining unit, 26 years and 8 months of service credit. Eligible based on years of service and age. Requested retirement date of June 29, 2026. Daniel A. Starrs requests an estimated pension payment in accordance with the following policy: Effective January 1, 2020, the board will allow for payment of an estimated pension payment for new retirees that make the election, and the estimated calculation will be calculated by taking 75% of the straight life calculation using average base wage only (base wage that will be utilized in the in FAC excludes roll-ins), years of service and the applicable multiplier(s). Any under/overpayments will be paid/collected. This policy will be available to those employees with a retirement date of January 1, 2020, through August 31, 2020. At the July 10, 2020, retirement board meeting, Lee Collick motioned to continue paying estimated payments from January 1 – August 31st each year, as long as the criteria is met by the applicant. The motion was adopted unanimously 5/0. Request for Board approval of the retirement application and the estimated pension payment for Daniel A. Starrs. 2. Jeffrey D. Carroll, Fire Captain, Fire bargaining unit, 26 years and 10 months (including 3 years of contract time) of service credit. Eligible based on years of service and age. Requested retirement date of June 24, 2026. Jeffrey D. Carroll requests an estimated pension payment in accordance with the following policy: Effective January 1, 2020, the board will allow for payment of an estimated pension payment for new retirees that make the election, and the estimated calculation will be calculated by taking 75% of the straight life calculation using average base wage only (base wage that will be utilized in the in FAC excludes roll-ins), years of service and the applicable multiplier(s). Any under/overpayments will be paid/collected. This policy will be available to those employees with a retirement date of January 1, 2020, through August 31, 2020. At the July 10, 2020, retirement board meeting, Lee Collick motioned to continue paying estimated payments from January 1 – August 31st each year, as long as the criteria is met by the applicant. The motion was adopted unanimously 5/0. Request for Board approval of the retirement application and the estimated pension payment for Jeffrey D. Carroll. Page 2 of 4 3. Mark Finitzer, Fire Lieutenant, Fire bargaining unit, 22 years and 5 months of service credit. Eligible based on years of service and age. Requested retirement date of June 30, 2026. Mark Finitzer requests an estimated pension payment in accordance with the following policy: Effective January 1, 2020, the board will allow for payment of an estimated pension payment for new retirees that make the election, and the estimated calculation will be calculated by taking 75% of the straight life calculation using average base wage only (base wage that will be utilized in the in FAC excludes roll-ins), years of service and the applicable multiplier(s). Any under/overpayments will be paid/collected. This policy will be available to those employees with a retirement date of January 1, 2020, through August 31, 2020. At the July 10, 2020, retirement board meeting, Lee Collick motioned to continue paying estimated payments from January 1 – August 31st each year, as long as the criteria is met by the applicant. The motion was adopted unanimously 5/0. Request for Board approval of the retirement application and the estimated pension payment for Mark Finitzer. 4. Bruce Handrinos, Police Officer, ROPOA bargaining unit, 21 years (including 3 years of contract time) of service credit. Eligible based on years of service and age. Requested retirement date of July 4, 2026. Bruce Handrinos requests an estimated pension payment in accordance with the following policy: Effective January 1, 2020, the board will allow for payment of an estimated pension payment for new retirees that make the election, and the estimated calculation will be calculated by taking 75% of the straight life calculation using average base wage only (base wage that will be utilized in the in FAC excludes roll-ins), years of service and the applicable multiplier(s). Any under/overpayments will be paid/collected. This policy will be available to those employees with a retirement date of January 1, 2020, through August 31, 2020. At the July 10, 2020, retirement board meeting, Lee Collick motioned to continue paying estimated payments from January 1 – August 31st each year, as long as the criteria is met by the applicant. The motion was adopted unanimously 5/0. Request for Board approval of the retirement application and the estimated pension payment for Bruce Handrinos. c. Retirement Benefits 1. Timothy S. Brown, Police Sergeant, PCOA bargaining unit, 25 years (including 2 years and 1.5 months contract time and 2 years, 3 months and 10 days of ordinance time) of service credit. Eligible based on years of service and age. Retirement date of March 2, 2026. Selected Option D 75% to surviving spouse - $7,859.49 gross monthly benefit with withdrawal of contributions / interest of $106,895.39. Request for Board approval of the gross monthly benefit payment of $7,859.49 to Timothy S. Brown, with withdrawal of contributions / interest of $106,895.39. 6. Investments Market value / allocation of asset review as of March 31, 2026. Presentation by Florence Mwaura of SEI Investments Request that the Board receive and file all investment reports. 7. Legal Page 3 of 4 a. State of Michigan PA 4 of 2023 - full exemption on pension income by the 2026 tax year. b. Disability Policy - Board review and adoption requested. Request to receive and file all legal reports. 8. Other a. Annual advisor and consultant review – In accordance with Board policy, each year one of the existing advisors/consultants is reviewed along with prospective advisors / consultants. The medical director is due for review (retirement board only). b. State of Michigan Open Meetings Act (OMA) Handbook - March 2026 (provided for informational purposes). 9. Adjournment Next quarterly meeting is scheduled for 9:00 a.m. August 7, 2026, located in conference room # 122 at the City Hall Building at 203 S. Troy Street. Page 4 of 4

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