General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, April 18, 2013 __________________________________________________ __ _ ___ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:32 p.m. BOARD MEMBERS PRESENT: Rich Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Todd Marsh, Trustee Paul Henig, 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 amended for the addition of invoices for money manager fees under Consent Agenda Item I D I and the inclusion of Pension Administrator authorization under Regular Agenda Item III M 3. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Baker, to approve the minutes of the regular meeting held March 21, 2013. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: Michaud distributed and discussed the finalized Compensation Disclosure Form and Political Contribution Disclosure Form pursuant to MCL 38.1133(7) and MCL 38.1133c respectively. Motion by Varney, supported by Baker, to approve and adopt the finalized Compensation Disclosure Form and Political Contribution Disclosure Form pursuant to MCL 38.1133(7) and MCL 38.1133c. Michaud requested that the Board recess to closed session to discuss securities litigation Motion by Marsh, supported by Varney, to recess to closed session for the purposes of discussing litigation. Roll call vote: Weiler: Aye Baker: Aye Varney: Aye Henig: Aye Marsh: Aye Board recessed to closed session. Separate minutes of the closed session were compiled. Board reconvened from closed session. Motion by Baker, supported by Varney, to authorize Michaud to take the appropriate action to establish lead plaintiff status in the Caterpillar Inc. securities litigation matter. Ayes: All. Motion carried unanimously. Michaud also commented on items as the appeared on the agenda. CONSENT AGENDA: Motion by Henig, supported by Marsh, to receive and file consent items I A through I D-1. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for April 1, 2013 from Comerica Bank showing 332 active retirees  with a payout for March 2013 of $773,653.78 and a year-to-date payout of $3,087,143.14. B. Cash and Asset Statements as of March 31, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $111,328,949.44 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.72% Comerica Bank $806,887.70 21.33% 19.95% PIMCO 22,215,018.88 10.67% 10.12% McDonnell 11,266,560.43 15% 13.48% Earnest Partners 15,004,651.32 8% 7.91% Herndon Capital 8,802,453.00 8% 8.03% MFS 8,936,170.03 5.33% 6.31% Victory 7,025,956.75 5.33% 6.60% Winslow 7,348,139.44 5.33% 6.60% Janus Capital 7,343,457.66 8.5% 7.07% Thornburg 7,865,709.52 8.5% 9.09% Allianz - NFJ 10,121,331.01 Cohen & Steers 4% 4.12% 4,592,613.70 – REIT C. Correspondence 1. Email correspondence with Comerica dated March 14, 2013 regarding SSN masking – Benefit Payments Online Notification 2. Letter and email correspondence with Merrill Lynch dated March 21, 2013 regarding the transfer of funds for the payment of benefits. 3. Class Action Settlements Claims Due May 2013. 4. "Employee Benefit News" magazine dated April 15, 2013. 5. "Pension & Investments" magazine dated April 1, 2013.  D. 1. Payable from System Assets for the quarterly service period ending June 30, 2013 through Merrill Lynch Consults: Quarterly management fees from Janus in the amount of $13,731.53; from Earnest Partners in the amount of $28,057.20; from PIMCO in the amount of $24,885.43; from MFS in the amount of $16,709.75; from Thornburg in the amount of $12,971.39; from Victory in the amount of $11,428.96; from Winslow in the amount of $11,905.78; from NFJ in the amount of $17,855.09; from Herndon in the amount of $14,301.18 and from McDonnell in the amount of $2,235.37. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Larry D’Angelo, Court Officer, 41-A District Court Motion by Baker, supported by Marsh, to approve the service retirement of Larry D’Angelo, Court Officer, 41-A District Court, effective March 23, 2013 with service credit of 38 years and the monthly pension amount of $3,317.19 which is limited to 70% FAC under Option A 100% without annuity withdrawal based on a monthly final average compensation of $5,547.24. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Application for Service Retirement for Joel Casey, Recreation Supervisor, Parks and Recreation Motion by Marsh, supported by Henig, to receive and file the application for service retirement for Joel Casey, Recreation Supervisor, Parks and Recreation. Ayes: All. Motion carried unanimously.  B. Application for Service Retirement for Cynthia Guzi, Senior Center Supervisor, Parks and Recreation Motion by Baker, supported by Henig, to receive and file the application for service retirement for Cynthia Guzi, Senior Center Supervisor, Parks and Recreation. Ayes: All. Motion carried unanimously. C. Application for Service Retirement for Robin Van Sice, Clerk of the Court, 41-A District Court Motion by Varney, supported by Marsh to receive and file the application for service retirement for Robin Van Sice, Clerk of the Court, 41-A District Court. Ayes: All. Motion carried unanimously. D. Application for Service Retirement for Patricia Figurski, Appraiser I, Office of Assessing Motion by Baker, supported by Henig, to receive and file the application for service retirement for Patricia Figurski, Appraiser I, Office of Assessing. Ayes: All. Motion carried unanimously. E. Application for Service Retirement for Diane Winterstein, Special Recreation Supervisor, Parks and Recreation Motion by Henig, supported by Marsh, to receive and file the application for service retirement for Diane Winterstein, Special Recreation Supervisor, Parks and Recreation. Ayes: All. Motion carried unanimously. F. Application for Service Retirement for Lynn McKheen, Court Administrator, 41-A District Court Motion by Baker, supported by Marsh, to receive and file the application for service retirement for Lynn McKheen, Court Administrator, 41-A District Court. Ayes: All. Motion carried unanimously. G. Application for Service Retirement for Mary Jo Dombrowski, Management Services Specialist, Office of City Management  Motion by Varney, supported by Henig, to receive and file the application for service retirement for Mary Jo Dombrowski, Management Services Specialist, Office of City Management. Ayes: All. Motion carried unanimously. H. Application for Service Retirement for Alice Cook, Library Services Coordinator, City Library Motion by Marsh, supported by Henig, to receive and file the application for service retirement for Alice Cook, Library Services Coordinator, City Library. Ayes: All. Motion carried unanimously. I. Application for Service Retirement for Te-Chuan Huang, Librarian, City Library Motion by Henig, supported by Marsh, to receive and file the application for service retirement for Te-Chuan, Librarian, City Library. Ayes: All. Motion carried unanimously. J. Application for Service Retirement forTodd Hackbarth, Information Technology Specialist, Office of Information Technology Motion by Baker, supported by Marsh, to receive and file the application for service retirement for Todd Hackbarth, Information Technology Specialist, Office of Information Technology. Ayes: All. Motion carried unanimously. K. Eligible Domestic Relations Order (EDRO) for Roy Palmeri Motion by Henig, supported by Marsh, to receive and file the Divorce Action / Eligible Domestic Relations Order (EDRO) Kathleen Barthauer vs. Roy Palmeri as approved by pension counsel and to forward a copy to custodian bank Comerica. Ayes: All. Motion carried unanimously. L. William Lang Request for Transfer of Service Credit Pursuant to Act 88 Section 6  Motion by Henig, supported by Marsh, to receive and file the actuarial analysis from Gabriel Roeder Smith & Company (actuaries) regarding the transfer of service credit for William Lang pursuant to Act 88 Section 6. Ayes: All. Motion carried unanimously. M. Pension Administration Comments 1. Draft Agenda May 22, 2013 Special Meeting Motion by Baker, supported by Varney, to approve the agenda for the May 22, 2013 special meeting as presented and to reschedule the May regular monthly meeting from May 16th to May 22nd with an 11:00 am start time. Ayes: All. Motion carried unanimously. 2. Update of Disability Retiree Medical Exams and Income Verification Motion by Baker, supported by Varney, to receive and file the status report for the Disability Retiree Medical Exams and Income Verification. Ayes: All. Motion carried unanimously. 3. Comerica Bank Authorization for Pension Administrator Motion by Baker, supported by Varney, to receive and file the authorization letter for the Pension Administrator as requested by custodian bank Comerica. Ayes: All. Motion carried unanimously. Ayes: All. Motion carried unanimously ADJOURN: Motion by Baker, supported by Varney, to adjourn the meeting at 2:35 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Brian Baker, Secretary