General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, October 18, 2012 ___________________________________________________________________ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:33 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Todd Marsh, Trustee Paul Henig, Trusteee BOARD MEMBERS ABSENT: None. ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Varney, supported by Baker, to approve the agenda as amended for the addition of money manager fees for payment under Consent Agenda Item I. E. 1 and 2. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Henig, to approve the minutes of the regular meeting held September 20, 2012. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None APPROVAL OF TRUSTEE ELECTION RESULTS Motion by Baker, supported by Varney to certify the trustee election results provided by the City Clerk as follows: Candidate # of Votes Election Results Paul Henig *by nomination Elected to 3-year term ending October 15, 2015 process *City Clerk Walt Blessed has formally notified the Pension Administration office that only one nomination for GERS Trustee – Paul Henig was received by the nomination deadline of September 24th. Election protocol is such that no write in ballots are accepted during an election, thereby eliminating the need for a formal election and permitting Paul Henig to be sworn in as Trustee. Ayes: All. Motion carried unanimously. ELECTION OF CHAIRPERSON / VICE CHAIR Motion by Varney, supported by Henig to nominate and elect Trustee Richard Weiler as Chairperson and Secretary Brian Baker as Vice Chairperson. Both candidates accepted the nomination. Ayes: All. Motion carried unanimously. REPORT FROM LEGAL COUNSEL: No formal report. Michaud commented on issues as they appeared on the agenda. Discussion ensued in regard to the upcoming November election and the potential impact of the passage of Proposal 2. Michaud noted that if the proposal passes a formal update would be provided to the Board at an upcoming meeting. CONSENT AGENDA: Motion by Baker, supported by Henig, to receive and file consent items I A through I E-2. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for October 1, 2012 from Comerica Bank showing 364 active retirees with a payout for September 2012 of $779,407.77 and a year-to-date payout of $8,522,505.71. B. Cash and Asset Statements as of September 30, 2012 from Comerica Bank and Merrill Lynch showing a total market value of $107,709,148.61 comprised as follows:  Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 1.15% Comerica Bank $1,237,530.39 16% 15.89% PIMCO 17,111,974.99 16% 15.13% McDonnell 16,301,599.47 15% 13.21% Earnest Partners 14,232,998.64 8% 7.39% Herndon Capital 7,963,441.34 8% 7.33% MFS 7,895,722.07 5.33% 6.33% Victory 6,816,574.85 5.33% 6.36% Winslow 6,844,621.05 5.33% 6.56% Janus Capital 7,070,056.03 8.5% 8.40% Thornburg 9,046,293.01 8.5% 8.37% Allianz - NFJ 9,010,184.04 4% 3.88% Cohen & Steers 4,178,152.73 – REIT C. Securities Lending Income Summary showing $70.09 collected fiscal year-to-date as compared to $539.76 last fiscal year-to-date. D. Correspondence 1. Merrill Lynch AIM quarterly performance reports in CD-ROM format for the second quarter 2012. 2. Merrill Lynch account information for Herndon Capital dated September 14, 2012. 3. Email correspondence and letters sent to Merrill Lynch and Comerica Bank dated September 20, 2012 regarding the transfer of funds for the payment of benefits. 4. Email correspondence and letters with Merrill Lynch and Comerica Bank dated September 25, 2012 regarding the change in custodian for McDonnell Investment. 5. Wire transfer notification received from Merrill Lynch dated September 26, 2012 regarding the transfer of funds for the payment of benefits. 6. Class Action Settlements Claims Due November 2012. 7. “Employee Benefit News” magazines dated September 1 and 15, 2012. 8. “The Institutional Real Estate Letter” dated October 2012. 9. “Pension & Investments” magazines dated September 17 and October 1, 2012. E. Approve Invoices for Payment 1. Payable from System Assets for the quarterly service period ending December 31, 2012 through Merrill Lynch Consults Quarterly management fees from Janus in the amount of $13,329.00; from Earnest Partners in the amount of $26,833.12; from PIMCO in the amount of $19,319.86; from MFS in the amount of $14,885.61; from Thornburg in the amount of $15,190.69; from Victory in the amount of $11,010.16; from Winslow in the amount of $11,111.84 and from NFJ in the amount of $16,489.30. 2. Payable from System Assets for the service period ending November 5, 2012 Final management fees from MD Sass in the amount of $13,600.09. REGULAR AGENDA: II. OLD BUSINESS: A. Deferred Retirement Information for Anita Lovell, MAPE Technical / Office Union, Department of Public Works Motion by Varney, supported by Henig, to approve the deferred service retirement for Anita Lovell, MAPE Technical / Office Union, Department of Public Works, effective October 6, 2012 with service credit of ten years, five months and the monthly pension amount of $616.39 under straight life without annuity withdrawal based upon a monthly final average compensation of $2,572.72. Ayes: All. Motion carried unanimously. B. Retirement Information Under ERIP for Kay Walsh, Account Clerk, Department of Public Works Motion by Baker, supported by Weiler, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Kay Walsh, Account Clerk, Department of Public Works, effective August 31, 2012 with service credit of 14 years, ten months and the monthly pension amount of $1,292.99 under straight life with annuity withdrawal based upon a monthly final average compensation of $4,243.30 Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status – Jerry Hammond (Deceased) Motion by Baker, supported by Henig, to approve Audrey Hammond (survivor / beneficiary) to receive Option A benefits equal to 100% that of deceased retiree Jerry Hammond in the monthly gross amount of $971.28. Ayes: All. Motion carried unanimously. B. Change in Survivor Beneficiary Status – Janice Wright Motion by Baker, supported by Henig, to receive and file the verification of terminated Option C benefits for surviving beneficiary, Janice Wright, effective October 13, 2012 that constitutes the end of the ten- year Option C benefit term. Ayes: All. Motion carried unanimously. C. Pension Administration Comments 1. GERS Special Meeting Agenda for November 2012 Motion by Varney, supported by Marsh to approve the Agenda for the November 15, 2012 special meeting with a start time of 9:30 a.m. and confirm the re-scheduling from the original November 20th meeting date. Ayes: All. Motion carried unanimously. D. Trustee Comments – None ADJOURN: Motion by Varney, supported by Marsh, to adjourn the meeting at 1:58 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, Brian Baker, Secretary