General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, January 19, 2012 ___________________________________________________________________ __ _ __ _ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Baker called the meeting to order at 1:32 p.m. BOARD MEMBERS PRESENT: Brian Baker, Acting Chairperson Jennifer Varney, Acting Secretary / Treasurer Paul Henig, Trustee Todd Marsh, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (excused). ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Henig, supported by Varney, to approve the agenda as amended for the addition of the money manager fees and legal services under consent agenda item I E. 1, 2 and 3 respectively. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Henig, to approve the minutes of the regular meeting held December 15, 2011. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: No formal report. Michaud commented on issues as they appeared on the agenda. CONSENT AGENDA: Motion by Henig, supported by Marsh, to receive and file consent items I A through I D-11 and approve invoices under I E. 1, 2 and 3. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for January 1, 2012 from Comerica Bank showing 301 active retirees with a payout for December 31, 2011 of $668,348.36 and a year-to-date payout of $668,348.36. B. Cash and Asset Statements as of December 31, 2011 from Comerica Bank and Merrill Lynch showing a total market value of $102,133,015.33 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.78% Comerica Bank $ 794,946.58 16% 15.74% PIMCO 16,071,454.30 16% 16.02% McDonnell 16,364,572.83 15% 14.79% Earnest Partners 15,101,726.66 8% 7.93% M. D. Sass 8,096,564.78 8% 8.02% MFS 8,188,574.85 5.33% 5.15% Victory 5,264,175.42 5.33% 5.35% Winslow 5,461,936.55 5.33% 5.12% Janus Capital 5,233,788.18 8.5% 8.20% Thornburg 8,376,589.12 8.5% 8.29% Allianz - NFJ 8,469,283.79 Cohen & Steers – 4% 4.61% 4,709,402.31 REIT C. Securities Lending Income Summary showing $837.22 collected fiscal year-to-date as compared to $933.93 last fiscal year-to-date. D. Correspondence 1. Letter and email sent to Merrill Lynch dated December 15, 2011 regarding the transfer of funds for the payment of benefits. 2. Wire transfer confirmation received from Merrill Lynch dated December 22, 2011 confirming the transfer of funds for the payment of benefits 3. Research memorandum dated December 29, 2011 regarding service credit pursuant to Public Act 88 (confidential). 4. Letter sent to Comerica Bank dated December 29, 2011 regarding securities litigation settlement fund check deposit – General Growth. 5. Class Action Settlements Claims report due February 2012. 6. 2011 Allianz Global Investors Prospectus. 7. ADV Part 2B brochure supplement dated 2011 received from Merrill Lynch – Cohen & Steers. 8. Barron’s Top 1,000 Advisors 2011 list. 9. “The Advocate” Fall 2011 magazine. 10. “Employee Benefit News” magazine December 2011. 11. “Pension & Investments” magazines December 12 & 26, 2011 and January 9, 2012. E. Approve Invoices for Payment 1. Payable from System Assets for the quarterly service period ending March 31, 2012 Quarterly management fees from Merrill Lynch Consults – Victory in the amount of $8,291.07; from Merrill Lynch Consults – Winslow in the amount of $8,602.56; from Merrill Lynch Consults – NFJ / Alllianz in the amount of $14,821.24 and from Merrill Lynch Consults – Thornburg in the amount of $13,611.96. 2. Payable from System Assets for the quarterly service period ending December 31, 2011 Quarterly management fees from MD Sass in the amount of $10,121.71. 3. Payable from City Assets for the December 2011 period end billing: Actuarial EDRO calculation fees from Gabriel Roeder Smith & Co in the amount of $1,100.00. (reimbursed by participant and alternative payee) Actuarial experience review report fee from Gabriel Roeder Smith & Co in the amount of $11,000.00 Legal Services rendered from VanOverbeke, Michaud & Timmony, P.C. in the amount of $6,175.95. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for David Fox, Equipment Operator B, Department of Public Works Motion by Marsh, supported by Henig, to approve the service retirement of David Fox, Equipment Operator B, Department of Public Works, effective November 22, 2011 with service credit of 30 years and the monthly pension amount of $3,966.31 under option A 100% pop-up with annuity withdrawal, based upon a monthly final average compensation of $6,690.29. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Application for Service Retirement for John Roy, Plant Operator Mechanic, Department of Public Works Motion by Henig, supported by Marsh, to receive and file the application for service retirement for John Roy, Plant Operator Mechanic, Department of Public Works Ayes: All. Motion carried unanimously. B. Change in Survivor Beneficiary Status – Patricia Surprenant (Deceased) Motion by Henig, supported by Varney, to approve termination of benefits for survivor beneficiary, Patricia Surprenant, due to her death on December 23, 2011. Ayes: All. Motion carried unanimously. C. Pension Administration Comments: 1. Proposed February 23, 2012 Special Meeting Agenda Motion by Varney supported by Marsh, to approve agenda for February 23, 2012 special meeting as presented. Ayes: All. Motion carried unanimously. D. Trustee Comments: None. ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 2:14 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary