General Employees Retirement Board

UNOFFICIAL MINUTES OF REGULAR MEETING OF THESTERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, May 17, 2012 Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Henig called the meeting to order at 1:30 p.m. BOARD MEMBERS PRESENT: Paul Henig, Acting Chairperson Jennifer Varney, Acting Secretary / Treasurer Todd Marsh, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (excused) Brian Baker, Secretary (excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Marsh, supported by Varney, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Varney, to approve the minutes of the regular meeting held April 19, 2012. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL- LEGISLATIVE UPDATE: Michaud reviewed Public Act 107 of 2012 that has amended the provisions of the Economic Vitality Incentive Program (EVIP) established by Public Act 63 of 2011. In order to receive a portion of revenue sharing under the EVIP, local municipalities must certify compliance by June 1, 2012. Compliance with P.A. 152 (Publicly Funded Health Insurance Contribution Act) exempts a municipality from having to develop an employee compensation plan previously required under P.A. 63. Michaud also commented on issues as they appeared on the agenda. CONSENT AGENDA: Motion by Marsh, supported by Varney, 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 May 1, 2012 from Comerica Bank showing 307 active retirees with a payout for April 2012 of $672,564.04 and a year-to-date payout of $3,500,474.03. B. Cash and Asset Statements as of April 30, 2012 from Comerica Bank and Merrill Lynch showing a total market value of $109,774,594.87 comprised as follows: Actual Percentage Bank/Money Manager Desired Allocation Market Value 0% 0.72% Comerica Bank $ 790,568.46 16% 15.09% PIMCO 16,567,266.23 16% 15.16% McDonnell 16,638,130.39 15% 13.08% Earnest Partners 14,360,405.52 8% 8.18% M. D. Sass 8,976,005.98 8% 8.29% MFS 9,102,889.41 5.33% 6.13% Victory 6,725,918.39 5.33% 6.28% Winslow 6,894,089.54 5.33% 6.17% Janus Capital 6,768,610.33 8.5% 8.39% Thornburg 9,211,539.86 8.5% 8.44% Allianz - NFJ 9,269,233.11 4% 4.07% Cohen & Steers – REIT 4,469,937.65 C. Securities Lending Income Summary showing $985.95 collected fiscal year-to-date as compared to $1,814.34 last fiscal year-to-date. D. Correspondence 1. Litigation Report for the quarter ended March 31, 2012. 2. Form ADV Part 2A Brochures for all money managers dated April 12, 2012. 3. Email correspondence with Comerica Bank dated April 18, 2012 regarding stop / change dates. 4. Email correspondence and letter with The Brice Group dated April 20, 2012 regarding the transfer of funds for the payment of benefits.  5. Email correspondence and authorization letters with The Brice Group dated April 20, 2012 regarding the payment of money manager fees. 6. Email correspondence and authorization letters with Comerica Bank dated April 20, 2012 regarding the payment of money manager fees. 7. FOIA response to Preqin dated April 24, 2012. 8. Class Action Settlement Claims due June 2012. 9. Wire transfer notifications received from Merrill Lynch dated April 27, 2012. 10. “Institutional Investor” magazine dated April 2012. 11. “Employee Benefit News” magazine dated April 15, 2012. 12. “Pension & Investments” magazines dated April 16 & 30, 2012. E. Approve Invoices for Payment 1. Payable from City Assets for the quarterly service period ending March 31, 2012: Quarterly investment consulting fees from Merrill Lynch Consults in the amount of $9,583.33 REGULAR AGENDA: II. OLD BUSINESS: A. One Time $500 Payment for Sterling Heights Police Clerical Association Retirees Motion by Varney, supported by Marsh, to approve the one-time payment of $500 payable to each Karen Herman and Dolores Shorkey as provided in Section 36.7 of the Sterling Heights Police Clerical Employees Association Contract. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Survivor Beneficiary Status – Jennie Kuehnel (Deceased) Motion by Marsh, supported by Varney, to approve termination of benefits for survivor beneficiary, Jennie Kuehnel, due to her death on April 30, 2012. Ayes: All. Motion carried unanimously. B. Application for Service Retirement for Michael Crimmins, Broadcast Services Manager, Community Relations Motion by Varney, support by Marsh, to receive and file the application for service retirement for Michael Crimmins, Broadcast Services Manager, Community Relations. Ayes: All. Motion carried unanimously. C. Application for Service Retirement for Philip Lang, Equipment Operator B, Department of Public Works Motion by Marsh, supported by Varney, to receive and file the application for service retirement for Philip Lang, Equipment Operator B, Department of Public Works. Ayes: All. Motion carried unanimously. D. Application for Service Retirement for Lawrence Majetic, Planning Coordinator, Office of Planning and Zoning Motion by Varney, supported by Marsh, to receive and file the application for service retirement for Lawrence Majetic, Planning Coordinator, Office of Planning and Zoning Ayes: All. Motion carried unanimously. E. Application for Service Retirement Under ERIP, for Matthew Schmidt, City Assessor Motion by Marsh, supported by Varney, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for Matthew Schmidt, City Assessor Ayes: All. Motion carried unanimously. F. Application for Service Retirement Under ERIP for Frank Debinski, Custodian, Facilities Maintenance Motion by Marsh, supported by Varney, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for Frank Debinski, Custodian, Facilities Maintenance Ayes: All. Motion carried unanimously. G. Application for Service Retirement Under ERIP for Nancy Loch, Technical Secretary, Police Department Motion by Marsh, supported by Varney, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for Nancy Loch, Technical Secretary, Police Department. Ayes: All. Motion carried unanimously. H. Pension Administration Comments 1. Update of Request for Proposal Status – Service Providers Motion by Varney, support by Marsh, to receive and file the updated report for the request for proposal status – service providers. Ayes: All. Motion carried unanimously.  2. Update of Disability Retiree Medical Exams and Income Verification Motion by Varney, support by Marsh, to receive and file the status report for the Disability Retiree Medical Exams and Income Verification (confidential). Ayes: All. Motion carried unanimously. I. Trustee Comments – None ADJOURN: Motion by Varney, supported by Marsh, to adjourn the meeting at 2:11 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer