General Employees Retirement Board

UNOFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, June 21, 2012 ___________________________________________________________________ __ _ ___ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:30 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Paul Henig, Trustee Todd Marsh, Trustee BOARD MEMBERS ABSENT: None. ALSO PRESENT: Walt Hessell, Pension Administrator; 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 Varney, supported by Henig, to approve the minutes of the regular meeting held May 17, 2012 and the special meeting held May 24, 2012. 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-9. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: Benefit register listing for June 1, 2012 from Comerica Bank showing 311 active retirees with a payout for May 2012 of $693,331.00 and a year-to-date payout of $4,223,654.44. Cash and Asset Statements as of May 31, 2012 from Comerica Bank and Merrill Lynch showing a total market value of $103,285,720.42 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.70% Comerica Bank $ 720,310.79 16% 16.21% PIMCO 16,737,705.46 16% 16.25% McDonnell 16,784,706.42 15% 12.89% Earnest Partners 13,310,559.92 8% 7.89% M. D. Sass 8,144,726.76 8% 7.90% MFS 8,163,672.86 5.33% 6.07% Victory 6,269,168.74 5.33% 6.08% Winslow 6,283,809.73 5.33% 6.22% Janus Capital 6,428,107.32 8.5% 7.98% Thornburg 8,242,527.11 8.5% 7.96% Allianz - NFJ 8,220,889.45 Cohen & Steers – 4% 3.85% 3,979,535.86 REIT Securities Lending Income Summary showing $1,008.49 collected fiscal year-to-date as compared to $2,021.81 last fiscal year-to-date. Correspondence Portfolio Monitoring Report for the fourth quarter 2011 received from Robbins Geller Rudman & Dowd LLP (confidential) Letter sent to Comerica Bank dated May 15, 2012 regarding deposit of International Rectifier Corp Securities Litigation settlement fund check.  Email correspondence and letter with The Brice Group – Merrill Lynch dated May 17, 2012 regarding the transfer of funds for the payment of benefits. Wire transfer notifications received from Merrill Lynch dated May 25, 2012. Class Action Settlements Report – Claims Due July 2012 (confidential). Email correspondence with The Brice Group and Liberty Square Asset Management dated June 14, 2012. "AR" magazine dated May 2012. "Pension & Investments" magazines dated May 14 & 28 and June 11, 2012. "Employee Benefit News" magazines dated May and June 2012 . REGULAR AGENDA: II. OLD BUSINESS: Retirement Information Under ERIP for Joseph Sturza, Broadcast Services Coordinator, Community Relations Motion by Baker, supported by Henig, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Joseph Sturza, Broadcast Services Coordinator, Community Relations effective May 1, 2012 with service credit of 27 years, ten months and the monthly pension amount of $3,318.80 under option A 100% with annuity withdrawal based upon a monthly final average compensation of $5,794.65. Ayes: All. Motion carried unanimously.  Retirement Information for Margaret Pawlowski, Administrative Assistant, Office of Planning & Zoning Motion by Varney, supported by Marsh, to approve the service retirement for Margaret Pawlowski, Administrative Assistant, Office of Planning & Zoning, effective May 31, 2012 with service credit of 23 years, eleven months and the monthly pension amount of $2,178.12 under option B 50% pop-up with annuity withdrawal based upon a monthly final average compensation of $4,798.23. Ayes: All. Motion carried unanimously. Retirement Information for Elaine Szlaga, Administrative Assistant, Office of Purchasing Motion by Baker, supported by Varney, to approve the service retirement for Elaine Szlaga, Administrative Assistant, Office of Purchasing, effective June 1, 2012 with service credit of 12 years, two months and the monthly pension amount of $1,001.15 under option A 100% pop-up with annuity withdrawal based upon a monthly final average compensation of $4,775.93. Ayes: All. Motion carried unanimously. Retirement Information for Lawrence Majetic, Planning Coordinator, Office of Planning & Zoning Motion by Varney, supported by Baker, to approve the service retirement for Lawrence Majetic, Planning Coordinator, Office of Planning & Zoning, effective June 1, 2012 with service credit of 26 years, three months and the monthly pension amount of $3,917.21 under straight life without annuity withdrawal based upon a monthly final average compensation of $6,488.15. Ayes: All. Motion carried unanimously. III. NEW BUSINESS:  Application for Service Retirement for Mark Carufel, Purchasing / Risk Manager Motion by Baker, support by Varney, to receive and file the application for service retirement for Mark Carufel, Purchasing / Risk Manager. Ayes: All. Motion carried unanimously. Application for Service Retirement Under ERIP, Philip Saliba, Custodian, Facilities Maintenance Motion by Baker, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for Philip Saliba, Custodian, Facilities Maintenance. Ayes: All. Motion carried unanimously. Pension Administration Comments: Hessell reminded the Board that the July 19th, 2012 regular monthly Board meeting will be held in the City Development Conference Room #205. Trustee Comments – None ADJOURN: Motion by Baker, supported by Varney, to adjourn the meeting at 1:53 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, Brian Baker, Secretary