General Employees Retirement Board

UNOFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, January 17, 2013 ___________________________________________________________________ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:31 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Paul Henig, Trustee BOARD MEMBERS ABSENT: Todd Marsh, Trustee (Excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Baker, supported by Varney, 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 December 20, 2012. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: Michaud commented on issues as they appeared on the agenda. CONSENT AGENDA: Motion by Baker, supported by Varney, to receive and file consent items I A through I C-10. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for January 1, 2013 from Comerica Bank showing 333 active retirees with a payout for December 2012 of $771,729.63 and a year-to-date payout of $771,729.63. B. Cash and Asset Statements as of December 31, 2012 from Comerica Bank and Merrill Lynch showing a total market value of $107,323,396.00 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.76% Comerica Bank $813,252.87 16% 16.03% PIMCO 17,208,825.01 16% 15.22% McDonnell 16,329,555.20 Earnest 15% 13.40% 14,380,323.35 Partners Herndon 8% 7.40% 7,940,684.08 Capital 8% 7.45% MFS 7,995,845.98 5.33% 6.07% Victory 6,516,691.19 5.33% 6.27% Winslow 6,733,578.66 5.33% 6.53% Janus Capital 7,004,740.87 8.5% 7.97% Thornburg 8,552,998.70 Allianz - 8.5% 8.93% 9,581,901.13 NFJ Cohen & Steers 4% 3.97% 4,264,998.96 – REIT C. Correspondence 1. Class Action Settlements Claims Due February 2013. 2. Merrill Lynch AIM quarterly performance reports for the quarter ending September 30, 2012 in CD-ROM format.  3. MAPERS Public Employee Retirement System Survey for the plan year ending June 30, 2012. 4. Letter sent to Comerica Bank dated December 17, 2012 regarding deposit of check –final McDonnell fee. 5. Email correspondence and letter sent to Merrill Lynch and Comerica Bank dated December 20, 2012 regarding the transfer of funds for the payment of benefits. 6. Email correspondence sent to Merrill Lynch dated December 20, 2012 regarding the authorization of payment of money manager fees. 7. Email correspondence and letter received from Comerica Bank dated December 24, 2012 regarding the transfer of pension work from Trust Operations to the Pension Services Group. 8. Wire transfer confirmation received from Merrill Lynch dated December 27, 2012 confirming the transfer of funds for the payment of benefits. 9. “The Institutional Real Estate Letter” dated January 2013. 10. “Pension & Investments” magazine dated December 24, 2012 & January 7, 2013. REGULAR AGENDA: II. OLD BUSINESS: A. Compliance Checklist – Public Act 347 Discussion Michaud reviewed the checklist with the Board and made recommendations as to a course of action with regard to achieving compliance by the April 1, 2013 deadline. Hessell stated that he had contacted The Brice Group with regard to the provisions of the act that dealt with potential amendments to the Investment Policy Statement and fee disclosure policy. Michaud will draft model forms for both fee disclosure policy and political contribution policy. Resolutions 95-01 and 00-03 addressing education / travel and FOIA policies respectively will also be reviewed and updated. Record retention policy was recently updated under Resolution 11-01 and is in compliance with PA 347. Hessell commented that the required modifications for the Summary Annual Report will be met with the issuance of the next SAR in August 2013 and Michaud will provide a checklist to assist in the revisions. Posting of the SAR to the City website is also mandated. Supplemental actuarial analysis fees are required  to be paid by parties other than the system and it was confirmed that the Board has been in conformity. Motion by Henig, supported by Weiler to receive and file the Compliance Checklist for Public Act 347 Implementation. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status – Kenneth Kotenko (Deceased) Motion by Baker, supported by Henig, to approve Dian Kotenko (survivor/retiree)to receive Option A benefits equal to 100% that of the deceased retiree Kenneth Kotenko in the monthly gross amount $5,292.17. Ayes: All. Motion carried unanimously. B. Pension Administration Comments – February 21st, 2013 Combined Regular and Special Quarterly Meeting Hessell confirmed that The Brice Group was able to accommodate the rescheduling of the quarterly meeting and that a public notice for the rescheduling would be timely posted to the City website. C. Trustee Comments - None ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 1:55 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, Brian Baker, Secretary