General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, March 15, 2012 ___________________________________________________________________ __ _ __ _ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Baker called the meeting to order at 1:34 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: Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Marsh, supported by Henig, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Henig, to approve the minutes of the regular meeting held February 16, 2012 and the special meeting of February 23, 2012. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: Michaud requested that the Board recess to closed session for the purpose of discussing securities litigation Motion by Marsh, supported by Henig, to recess to closed session for the purpose of discussing litigation Roll call vote: Weiler: Absent Baker: Aye Varney: Aye Henig: Aye Marsh: Aye Board recessed to closed session at 1:36 p.m. Separate minutes of the closed session were compiled. Board reconvened from closed session at 1:45 p.m. Michaud stated that the newly revised IRS 402 notice would be discussed at the April 19th regular meeting. Michaud also commented on issues as they appeared on the agenda. CONSENT AGENDA: Motion by Marsh, supported by Henig, to receive and file consent items I A through I D-12 and approve invoices under I E. 1. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for March 1, 2012 from Comerica Bank showing 305 active retirees with a payout for February 2012 of $669,277.77 and a year-to-date payout of $2,092,991.89. B. Cash and Asset Statements as of February 29, 2012 from Comerica Bank and Merrill Lynch showing a total market value of $109,368,214.47 comprised as follows:  Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.67% Comerica Bank $ 728,530.96 16% 15.02% PIMCO 16,420,650.39 16% 15.12% McDonnell 16,538,584.30 15% 13.72% Earnest Partners 15,001,293.59 8% 8.23% M. D. Sass 8,999,546.88 8% 8.08% MFS 8,841,835.24 5.33% 5.87% Victory 6,423,915.32 5.33% 6.13% Winslow 6,700,529.11 5.33% 6.00% Janus Capital 6,566,263.51 8.5% 8.54% Thornburg 9,341,760.00 8.5% 8.58% Allianz - NFJ 9,388,890.78 Cohen & Steers – 4% 4.04% 4,416,414.39 REIT C. Securities Lending Income Summary showing $925.29 collected fiscal year-to-date as compared to $1,273.73 last fiscal year-to-date. D. Correspondence 1. Litigation Report for the quarter ended December 31, 2011. 2. Email correspondence with Merrill Lynch dated February 14, 2012 regarding proposed money manager meeting attendance. 3. Email correspondence and letter sent to Merrill Lynch dated February 16, 2012 regarding the transfer of funds for the payment of benefits. 4. Email correspondence and authorization letters sent to Merrill Lynch dated February 16, 2012 regarding the payment of money manager fees. 5. Email correspondence and authorization letter sent to Comerica Bank dated February 16, 2012 regarding the payment of money manager fees. 6. Email correspondence with Pension Counsel dated February 17, 2012 regarding the State of Michigan Form MH-43 filings (record retention and disposal policy). 7. Letter sent to Comerica Bank dated February 17, 2012 regarding deposit of check for member purchase of municipal service time buyback. 8. Wire transfer confirmations from Merrill Lynch dated February 23, 2012. 9. Email correspondence with Comerica Bank dated February 28, 2012 regarding Krispy Kreme warrants exercise rights. 10. Notice of pendency and proposed settlement of class action – Beckman Coulter, Inc. 11. “Employee Benefit News” magazine dated February 2012. 12. “Pension & Investments” magazines dated February 20 & March 5, 2012. E. Approve Invoices for Payment 1. Payable from City Assets for the annual service period ending December 31, 2011 December 31, 2011 Annual Actuarial Valuation and related actuarial services in the amount of $14,000 from Gabriel Roeder Smith & Company. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Barb Miekstyn, Senior Account Clerk, Office of the City Treasurer Motion by Varney, supported by Marsh, to approve the service retirement of Barb Miekstyn, Senior Account Clerk, Office of the City Treasurer, effective February 16, 2012 with service credit of 21 years, six months and the monthly pension amount of $1,948.64 under option A 100% pop-up without annuity withdrawal, based upon a monthly final average compensation of $4,882.71. Ayes: All. Motion carried unanimously. B. Retirement Information for Cari Blessed, Deputy Court Clerk, 41-A District Court Motion by Varney, supported by Henig, to approve the service retirement of Cari Blessed, Deputy Court Clerk, 41-A District Court, effective February 18, 2012 with service credit of 30 years and the monthly pension amount of $2,804.97, under option B 50% without annuity withdrawal based upon a monthly final average compensation of $4,181.00. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Application for Service Retirement for Margaret Pawlowski, Administrative Assistant, Office of Planning and Zoning Motion by Marsh, supported by Henig, to receive and file the application for service retirement for Margaret Pawlowski, Administrative Assistant, Office of Planning and Zoning Ayes: All. Motion carried unanimously. B. Application for Service Retirement for James Buhlinger, Public Works Manager, Department of Public Works Motion by Varney, support by Baker, to receive and file the application for service retirement for James Buhlinger, Public Works Manager, Department of Public Works Ayes: All. Motion carried unanimously. C. Termination of Benefits Due to Death of Survivor Beneficiary, Ella Matthews Motion by Henig, supported by Marsh, to approve the termination of benefits for survivor beneficiary, Ella Matthews, due to her death on February 11, 2012. Ayes: All. Motion carried unanimously. D. Application for Service Retirement for Cynthia Critzon, Senior Account Clerk, Office of Financial Services Motion by Varney, supported by Marsh, to receive and file the application for service retirement for Cynthia Critzon, Senior Account Clerk, Office of Financial Services. Ayes: All. Motion carried unanimously. E. Updated Merrill Lynch Authorized Signers List Motion by Henig, supported by Baker, to approve and sign the updated Merrill Lynch authorized signers list. Ayes: All. Motion carried unanimously. F. Pension Administration Comments: None. . G. Trustee Comments: MAPERS 2012 Spring Conference Discussion ensued regarding the upcoming conference and it was decided by Board consensus to postpone and review the issue again at the April 19th regular Board meeting. ADJOURN: Motion by Marsh, supported by Baker, to adjourn the meeting at 2:27 p.m. Ayes: All. Motion carried unanimously.  Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer