General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, July 19, 2012 ___________________________________________________________________ __ _ ___ Location: Room #205 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Baker called the meeting to order at 1:33 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 Marsh, supported by Henig, to approve the agenda as amended for the addition of invoices for payment under Consent Agenda Item I-E. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting held June 21, 2012. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: Michaud distributed a legislative update memo and reviewed it with the Board. Public Act 200 of 2012, Senate Bill No. 1129, Senate Bill No. 1171, Senate Bill No. 1189 and Senate Bill No. 409 were discussed. Michaud noted that particular legislative changes made through the budget and appropriations process will likely require revisiting on an annual basis. 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 E-3. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for July 1, 2012 from Comerica Bank showing 310 active retirees with a payout for June 2012 of $706,137.68 and a year-to-date payout of $4,929,792.12. B. Cash and Asset Statements as of June 30, 2012 from Comerica Bank and Merrill Lynch showing a total market value of $105,455,621.78 comprised as follows: C. Securities Lending Income Summary showing $1,012.57 collected fiscal year-to-date as compared to $2,240.57 last fiscal year-to-date. D. Correspondence 1. Email correspondence and letter sent to Comerica Bank dated June 21, 2012 regarding the transfer of funds for the payment of benefits. 2. Ten ERISA 408(b)(2) Fee Disclosure documents for all GERS money managers dated June 27, 2012. 3. "Employee Benefit News" magazine dated July 2012. 4. "Pension & Investments" magazines dated June 25  and July 9, 2012. E. Approve Invoices for Payment 1. Payable from System Assets for the quarterly service period ending September 30, 2012 through Merrill Lynch Consults Quarterly management fees from NFJ in the amount of $15,377.62; from Victory in the amount of $10,152.47; from Winslow in the amount of $10,165.30 from Thornburg in the amount of $13,917.41; from Janus in the amount of $12,474.24; from Earnest Partners in the amount of $25,961.68; from PIMCO in the amount of $18,933.73 and MFS in the amount of $16,028.82. 2. Payable from System Assets for the quarterly service period ending June 30, 2012 Quarterly management fees from MD Sass in the amount of $10,500.04 and from McDonnell Investment in the amount of $8,086.49. 3. Payable from City Assets for the quarterly service period ending June 30, 2012 Custodian banking services from Comerica Bank in the amount of $4,138.15. II. OLD BUSINESS: A. Retirement Information Under ERIP for Philip Saliba, Custodian, Facilities Maintenance Motion by Varney, supported by Marsh, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Philip Saliba, Custodian, Facilities Maintenance, effective June 19, 2012 with service credit of 15 years, two months and the monthly pension amount of $1,350.02 under straight life with annuity withdrawal based upon a monthly final average compensation of $4,296.50. Ayes: All. Motion carried unanimously. B. Retirement Information Under ERIP for Frank Debinski, Custodian, Facilities Maintenance Motion by Henig, supported by Marsh, to approve the service  retirement under ERIP (Early Retirement Incentive Program) for Frank Debinski, Custodian, Facilities Maintenance, effective June 30, 2012 with service credit of 13 years, eleven months and the monthly pension amount of $1,082.01 under option A 100% with annuity withdrawal based upon a monthly final average compensation of $4,276.00. Ayes: All. Motion carried unanimously. C. Retirement Information Under ERIP for Nancy Loch, Technical Secretary, Police Department Motion by Marsh, supported by Henig, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Nancy Loch, Technical Secretary, Police Department, effective June 30, 2012 with service credit of 21 years, eight months and the monthly pension amount of $2,209.72 under straight life without annuity withdrawal based upon a monthly final average compensation of $4,434.23. Ayes: All. Motion carried unanimously. D. Retirement Information for Kim Hill, Custodian, Facilities Maintenance Motion by Varney, supported by Marsh, to approve the service retirement for Kim Hill, Custodian, Facilities Maintenance, effective June 30, 2012 with service credit of 25 years, seven months and the monthly pension amount of $2,538.26 under straight life with annuity withdrawal based upon a monthly final average compensation of $4,774.50. Ayes: All. Motion carried unanimously. E. Retirement Information for Mike Crimmins, Broadcast Services Manager, Community Relations Motion by Marsh, supported by Henig, to approve the service retirement for Mike Crimmins, Broadcast Services Manager, Community Relations, effective June 16, 2012 with service credit of 25 years, eleven months and the monthly pension amount of $5,664.35, under option A 100% with annuity withdrawal based upon a monthly final average compensation of $11,050.76. Ayes: All. Motion carried unanimously. F. Retirement Information for Edward Piet, Librarian, City Library Motion by Marsh, supported by Henig, to approve the  service retirement for Edward Piet, Librarian, City Library, effective June 16, 2012 with service credit of 34 years, eight months and the monthly pension amount of $4,244.77 which is limited to 70% under straight life without annuity withdrawal based upon a monthly final average compensation of $6,063.95. Ayes: All. Motion carried unanimously. G. Retirement Information for Pamela McLean, Deputy Court Clerk, 41-A District Court Motion by Varney, supported by Marsh, to approve the service retirement for Pamela McLean, Deputy Court Clerk, 41-A District Court, effective June 16, 2012 with service credit of 18 years, one month and the monthly pension amount of $1,641.69 under straight life without annuity withdrawal based on a monthly final average compensation of $3,947.16. Ayes: All. Motion carried unanimously. H. Retirement Information for Thomas Striewski, Probation Officer, 41-A District Court Motion by Marsh, supported by Henig, to approve the service retirement for Thomas Striewski, Probation Officer, 41-A District Court, effective June 16, 2012 with service credit of 30 years and the monthly pension amount of $3,944.15 under option A 100% pop-up with annuity withdrawal based on a monthly final average compensation of $7,802.58. Ayes: All. Motion carried unanimously. I. Annual Review of Adjustments to "Initial 70% AFC Limit" for Gross Monthly Pensions Motion by Varney, supported by Henig, to acknowledge the increase of the "Initial 70% AFC Limit" effective July 1, 2012 and the increase of the gross monthly pensions payable August 1, 2012 as detailed in the following table:  Revised Gross Name Revised 70% AFC Monthly Pension D. Mike Dickey $5,276.73 $4,983.94 Dino C. Ranella $6,194.50 $5,599.53 Kenneth Kotenko $6,241.07 $5,292.17 Sharon Oresky $3,233.51 $3,193.11 William Colvin $3,720.57 $3,720.57 Phyllis Puskar $3,506.93 $3,506.93 Larry Waniolek $3,316.34 $2,747.68 Richard Swiderski $7,757.88 $7,207.62 Mefford Couch $6,089.41 $5,315.42 Gerald Tamm $4,108.46 $3,539.96 James Carpenter $5,694.02 $4,277.59 Robert Ervin $5,580.33 $4,507.41 Susan Kebbe $7,856.39 $7,824.55 Judith Kotulis $4,433.70 $3,974.79 Thomas Hlivka $4,789.22 $4,252.69 Dan Browning $4,947.03 $3,786.37 Theodore Boehmer $7,606.38 $6,180.27 Colleen Muraszewski $3,946.80 $3,440.66 Anita Maiorana $4,247.35 $3,847.17 Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Application for Service Retirement for Noel Santos, Civil Engineer III, Office of Engineering Motion by Varney, support by Marsh, to receive and file the application for service retirement for Noel Santos, Civil Engineer III, Office of Engineering Ayes: All. Motion carried unanimously. B. Application for Service Retirement Under ERIP, L. Jerry Jackson, Appraiser III, Office of Assessing Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for L. Jerry Jackson, Appraiser III, Office of Assessing Ayes: All. Motion carried unanimously. C. Application for Service Retirement Under ERIP, Carolyn Galazka, Administrative Assistant, Fire Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for Carolyn Galazka, Administrative Assistant, Fire Department Ayes: All. Motion carried unanimously. D. Application for Service Retirement Under ERIP, Valerie Bondy, Clerk Typist, Department of Public Works Motion by Marsh, supported by Henig, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Program) for Valerie Bondy, Clerk Typist, Department of Public Works Ayes: All. Motion carried unanimously. E. Processing of Pop-Up Election for Carol McLean Motion by Marsh, supported by Henig, to approve the processing of the pop-up election for retiree Carol McLean, effective June 15, 2012 (spouse/beneficiary date of death) with a revised monthly benefit of $1,541.23 Ayes: All. Motion carried unanimously. F. Processing of Pop-Up Election for William Colvin Motion by Varney, supported by Marsh, to approve the processing of the pop-up election for retiree William Colvin, effective July 1, 2012 (spouse/beneficiary date of death) with a revised monthly benefit of $3,720.57 Ayes: All. Motion carried unanimously. G. Pension Administration Comments: 1. Review of Draft 2012/2013 GERS Meeting Schedule Motion by Marsh, supported by Henig, to approve the 2012/2013 GERS Meeting Schedule. Ayes: All. Motion carried unanimously. 2. Proposed August 22nd, 2012 Special Meeting Agenda Motion by Marsh, supported by Henig, to approve the August 22nd, 2012 Special Meeting Agenda Ayes: All. Motion carried unanimously. H. Trustee Comments – MAPERS 2012 Fall Conference Discussion ensued regarding the upcoming conference with a number of Board members expressing dissatisfaction with the venue location at the Grand Hotel at Mackinac Island. With the ongoing budget crisis in municipal government it was hoped that a more economical location could have been chosen. Michaud commented that the overall cost of the event was lowered due to a reduction in the registration fee that offset in part the room accommodation costs. The Boards’ belief was that cost containment must be a theme in both fact and appearance. By consensus the Board agreed that no member would attend the event. ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 2:29 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, Jennifer Varney, Acting Secretary / Treasurer