General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Wednesday, May 22, 2013 ___________________________________________________________________ Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 11:09 a.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 Henig, supported by Marsh, to approve the agenda as presented Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting and closed meeting held April 18, 2013. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL: No formal report. Michaud commented on items as the appeared on the agenda. CONSENT AGENDA: Motion by Baker, supported by Varney, to receive and file consent items I A through I D-2. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for May 1, 2013 from Comerica Bank showing 332 active retirees with a payout for April 2013 of $775,770.61 and a year-to-date payout of $3,862,913.75. B. Cash and Asset Statements as of April 30, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $112,217,763.69 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.72% Comerica Bank $807,103.04 21.33% 20.03% PIMCO 22,472,642.50 10.67% 10.15% McDonnell 11,386,822.67 15% 12.88% Earnest Partners 14,450,443.09 8% 7.89% Herndon Capital 8,852,628.13 8% 8.16% MFS 9,156,995.10 5.33% 6.26% Victory 7,027,028.60 5.33% 6.61% Winslow 7,416,567.44 5.33% 6.71% Janus Capital 7,528,923.93 8.5% 7.20% Thornburg 8,085,755.72 8.5% 9.03% Allianz - NFJ 10,138,167.83 Cohen & Steers – 4% 4.36% 4,894,685.64 REIT C. Correspondence 1. Q4 2012 Comprehensive AIM Report in CD-ROM format. 2. Twelve Form ADV Brochures received from Merrill Lynch dated April 2013. 3. Letter and email correspondence with Merrill Lynch dated April 18, 2013 regarding authorization for the transfer of Caterpillar Inc. shares. 4. Letter and email correspondence with Merrill Lynch dated April 18, 2013 regarding the transfer of funds for the payment of benefits. 5. Email correspondence with Merrill Lynch dated April 18, 2013  regarding the payment of money manager fees. 6. Letter and email correspondence with Merrill Lynch dated April 18, 2013 regarding Pension Administrator authorizations. 7. Security transfer confirmation received from Merrill Lynch dated April 24, 2013 for 200 shares of Caterpillar Inc. 8. Email correspondence regarding public posting of May 2013 rescheduled GERS meetings dated April 25, 2013. 9. Wire transfer confirmation received from Merrill Lynch dated April 25, 2013 regarding the transfer of funds for the payment of benefits. 10. Letter to City of Utica on behalf of William J. Lang – Transfer of Service under Act 88. 11. Letter sent to Stephanie Burgess dated May 7, 2013 confirming deferred retirement status and Act 88 implications. 12. Class Action Settlements Claims Due June 2013. 13. Email correspondence with City Clerk Mark Carufel dated May 7, 2013 confirming Rich Weiler’s intent to request reappointment to the GERS Board. 14. “The Advocate for Institutional Investors” – Spring 2013. 15. “Employee Benefit News” Vol. 27, No. 4 April 1, 2013. 16. “Pension & Investments” magazines dated April 15 & 29, 2013. D. 1. Payable from System Assets for the quarterly service period ending March 31, 2013 through Merrill Lynch Consults: Quarterly management fees from McDonnell Investment in the amount of $7,001.08; 2. Payable from City Assets for the quarterly service period ending March 31, 2013 Quarterly investment consultant fees from Merrill Lynch – Consults in the amount of $6,485.33 and custodial banking fees from Comerica Bank in the amount of $4,570.10. REGULAR AGENDA: II. OLD BUSINESS: A. One-Time $500 Payment for Sterling Heights Police Clerical Association Retirees Motion by Henig, supported by Marsh, to approve the one-time payment of $500 payable each to Margaret Salerno, Gloria Gajos, Mary Schmidt and Sharon Oresky as provided in Section 36.7 of the Sterling Heights Police Clerical Employees Association Contract.  Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Application for Service Retirement for Walt Blessed, Assistant City Manager / Human Resource Director, City Administration Motion by Baker, supported by Varney, to receive and file the application for service retirement for Walt Blessed, Assistant City Manager / Human Resource Director, City Administration. Ayes: All. Motion carried unanimously. B. Updated Merrill Lynch Authorized Signers List Motion by Baker, supported by Varney, to approve and sign the updated Merrill Lynch Authorized Signers List. Ayes: All. Motion carried unanimously. C. Pension Administration Comments - None D. Trustee Comments - None ADJOURN: Motion by Baker, supported by Varney, to adjourn the meeting at 11:18 a.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________ Brian Baker, Secretary