General Employees Retirement Board

UNOFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, June 20, 2013 ___________________________________________________________________ __ _ __ _ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:30 p.m. BOARD MEMBERS PRESENT: Rich Weiler, Chairperson Walt Hessell, Acting Secretary per City Ordinance Jennifer Varney, Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: None. ALSO PRESENT: Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Henig, supported by Marsh, to approve the agenda as amended to add invoice for actuarial services under Consent Agenda item I. D. 1. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting and special quarterly meeting held May 22, 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 Varney, supported by Henig, 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 June 1, 2013 from Comerica Bank showing 331 active retirees with a payout for May 2013 of $775,825.69 and a year-to-date payout of $4,638,739.44. B. Cash and Asset Statements as of May 31, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $111,465,571.64 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.73% Comerica Bank $819,486.14 21.33% 19.42% PIMCO 21,647,589.58 10.67% 9.73% McDonnell 10,841,457.22 15% 13.19% Earnest Partners 14,699,152.25 8% 8.09% Herndon Capital 9,015,211.09 8% 8.42% MFS 9,390,321.67 5.33% 6.47% Victory 7,212,086.84 5.33% 6.83% Winslow 7,611,783.00 5.33% 6.88% Janus Capital 7,664,063.87 8.5% 7.24% Thornburg 8,073,940.23 8.5% 8.86% Allianz - NFJ 9,874,334.04 Cohen & Steers – 4% 4.14% 4,616,145.71 REIT C. Correspondence 1. Q1 2013 Comprehensive AIM Report in CD-ROM format. 2. Email correspondence interoffice dated May 23, 2013 regarding GERS voting member substitute per Pension Ordinance. 3. Letter and email correspondence with Merrill Lynch dated May 23, 2013 regarding the transfer of funds for the payment of benefits. 4. Authorization letter sent to Merrill Lynch dated  May 30, 2013 for the payment of money manager fees. 5. Portfolio Monitoring Report dated April 26, 2013. 6. Litigation Report for the quarter ended March 31, 2013. 7. “Institutional Investor” magazine dated May 2013. 8. “The Institutional Real Estate Letter” dated May 2013. 9. “Pension & Investments” magazines dated May 13 & 27 and June 10, 2013. D. 1. Payable from City Assets for the service rendered on April 16, 2013: Actuarial services for the calculation of a transfer of service under Act 88 for a deferred vested retiree. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Patricia Figurski, Appraiser I, Office of Assessing Motion by Varney, supported by Henig, to approve the service retirement for Patricia Figurski, Appraiser I, Office of Assessing, effective May 17, 2013 with service credit of 14 years, one month and the monthly pension amount of $1,461.34 under Option A 100% pop-up with annuity withdrawal based upon a monthly final average compensation of $5,685.57. Ayes: All. Motion carried unanimously. B. Retirement Information for Tina Hotton, Deputy Court Clerk, 41-A District Court Motion by Varney, supported by Henig, to approve the service retirement for Tina Hotton, Deputy Court Clerk, 41-A District Court, effective May 18, 2013 with service credit of 32 years, eight months and the monthly pension amount of $2,921.89 which is limited to 70% FAC under Option B 50% without annuity withdrawal based on a monthly final average compensation of $4,257.27. Ayes: All. Motion carried unanimously. C. Deferred Retirement Information for James Adamo, Court Officer, 41-A District Court Motion by Henig, supported by Varney, to approve the deferred vested service retirement for James Adamo, Court Officer, 41-A District Court, effective May 16, 2013 with service credit of 17 years, ten months and the monthly pension amount of  $1,317.08 under Option A 100% without annuity withdrawal based upon a monthly final average compensation of $3,549.32. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status – Benjamin Zamarron (Deceased) Motion by Varney, supported by Henig, to approve termination of Option A benefits for retiree, Benjamin Zamarron, due to his death on April 29, 2013 and the death of his spouse on July 30, 2008. Ayes: All. Motion carried unanimously. B. Application for Service Retirement for Krystyna Kobersy, Librarian, City Library Motion by Varney, supported by Henig, to receive and file the application for service retirement for Krystyna Kobersy, Librarian, City Library. Ayes: All. Motion carried unanimously. C. Application for Service Retirement for Brian Baker, Finance & Budget Director, City Administration Motion by Varney, supported by Weiler, to receive and file the application for service retirement for Brian Baker, Finance & Budget Director, City Administration. Ayes: All. Motion carried unanimously. D. Application for Service Retirement for Steven Guitar, Community Relations Director Motion by Varney, supported by Marsh, to receive and file the application for service retirement for Steven Guitar, Community Relations Director. Ayes: All. Motion carried unanimously. Pension Administration Comments – Review of Draft 2013/2014 GERS Meeting Schedule Motion by Henig, supported by Marsh, to approve the 2013/2014 GERS Meeting Schedule. Ayes: All. Motion carried unanimously. F. Trustee Comments: Varney briefed the Board on the concept of obtaining trustee liability insurance. Michaud added to the discussion and described the various types of insurance policies that the Board may consider. Michaud believed that a comprehensive policy to be worthwhile as the cost would be recouped through less litigation costs over the long term. A properly structured policy could deter against frivolous claims as the policy would cover some of the legal defense costs on behalf of the system and the trustees. By Board consensus, it was determined that Treasurer Varney would obtain quotes from reputable carriers and present her findings to the Board. ADJOURN: Motion by Varney, supported by Marsh, to adjourn the meeting at 2:20 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, _________________________ Walt Hessell, Acting Secretary