General Employees Retirement Board

UNOFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, August 15, 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: Rich Weiler, Chairperson Brian Baker, Secretary 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 disability retirement medical examination under Consent Agenda item I. D. 3. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Baker, supported by Varney, to approve the minutes of the regular meeting held July 18, 2013. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL – LEGISLATIVE UPDATE Michaud reviewed a legislative update memo on Public Act 59 of 2013 which impacts the Economic Vitality Incentive Program (“EVIP”) for the City. An unfunded accrued liabilities reduction plan is now required. Hessell asked Michaud if the current 17- year closed plan declining amortization of the UAAL was satisfactory in meeting the requirements of the Act. Michaud stated that it was, as the reduction to the UAAL would be accomplished through additional City contributions. Michaud also briefly discussed potential changes to the Freedom of Information Act (FOIA) at the state level. Motion by Marsh, supported by Henig, to receive and file the legislative update memo. Ayes: All. Motion carried unanimously. CONSENT AGENDA: Motion by Baker, supported by Marsh, to receive and file consent items I A through I D-3. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for August 1, 2013 from Comerica Bank showing 337 active retirees with a payout for July 2013 of $805,239.04 and a year-to-date payout of $6,269,345.83. B. Cash and Asset Statements as of July 31, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $111,661,254.49 comprised as follows: Desired Allocation Actual Percentage Bank/Money Manager Market Value 0% 1.07% Comerica Bank $1,199,726.27 21.33% 18.28% PIMCO 20,410,350.11 10.67% 8.87% McDonnell 9,899,741.79 15% 13.62% Earnest Partners 15,210,520.35 8% 8.22% Herndon Capital 9,175,519.28 8% 8.79% MFS 9,821,217.73 5.33% 6.67% Victory 7,450,430.93 5.33% 7.04% Winslow 7,858,413.91 5.33% 7.11% Janus Capital 7,935,669.21 8.5% 7.37% Thornburg 8,226,266.57 8.5% 8.85% Allianz - NFJ 9,881,533.05 4% 4.11% Cohen & Steers – REIT 4,591,865.29  C. Correspondence 1. June 28, 2013 Settlement Report – Class Action. 2. Email correspondence and letter sent to Merrill Lynch and Comerica dated July 18, 2013 regarding the transfer of funds for the payment of benefits. 3. Email correspondence with Merrill Lynch dated July 18, 2013 regarding the authorization for payment of money manager fees. 4. Wire transfer notification received from Merrill Lynch dated July 29, 2013 confirming transfer of funds for the payment of retirement benefits. 5. “Pension & Investments” magazine dated July 22 and August 5, 2013. 6. “The Institutional Real Estate Letter – Americas” magazine dated July / August 2013. D. 1. Payable from City Assets for the quarterly service period ending June 30, 2013: Investment consultant fees from Merrill Lynch Consulting Services in the amount of $6,485.33 and custodian bank service fees from Comerica Bank in the amount of $4,593.16. 2. Payable from System Assets for the quarterly service period ending June 30, 2013: Quarterly management fees from McDonnell Investment in the amount of $5,639.63. 3. Payable from City Assets for the July 2013 service period: Disability Retirement Medical examination fees from MES Solutions in the amount of $1,012.00. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Krystyna Kobersy, Librarian, City Library Motion by Varney, supported by Baker, to approve the service retirement for Krystyna Kobersy, Librarian, City Library, effective June 25, 2013 with service credit of 21 years, six  months and the monthly pension amount of $2,520.39 under Option C with Annuity Withdrawal based on a monthly final average compensation of $5,946.35. Ayes: All. Motion carried unanimously. B. Retirement Information for Mary Jo Dombrowski, Management Services Specialist, Office of City Management Motion by Baker, supported by Henig, to approve the service retirement for Mary Jo Dombrowski, Management Services Specialist, Office of City Management, effective June 29, 2013 with service credit of 18 years, two months and the monthly pension amount of $1,893.42 under Option B 50% Pop-Up with Annuity Withdrawal based on a monthly final average compensation of $5,380.64. Ayes: All. Motion carried unanimously. C. Retirement Information for Alice Cook, Library Public Services Area Supervisor, City Library Motion by Marsh, supported by Varney, to approve the service retirement for Alice Cook, Library Public Services Area Supervisor, City Library, effective June 29, 2013 with service credit of 22 years, 11 months and the monthly pension amount of $2,886.68 under Option A 100% Pop-Up with Annuity Withdrawal based on a monthly final average compensation of $6,263.68. Ayes: All. Motion carried unanimously. D. Retirement Information for Te-Chuan Huang, Librarian, City Library Motion by Henig, supported by Marsh, to approve the service retirement for Te-Chuan Huang, Librarian, City Library, effective June 26, 2013 with service credit of 15 years, six months and the monthly pension amount of $1,923.83 under Option B 50% Pop-Up without Annuity Withdrawal based on a monthly final average compensation of $5,824.76. Ayes: All. Motion carried unanimously. E. Retirement Information for Todd Hackbarth, Information Technology Specialist, Office of Information Technology Motion by Marsh, supported by Henig, to approve the service retirement for Todd Hackbarth, Information Technology Specialist,  Office of Information Technology, effective June 29, 2013 with service credit of 28 years and the monthly pension amount of $3,548.34 under Option A 100% Pop-Up without Annuity Withdrawal based on a monthly final average compensation of $6,045.61 Ayes: All. Motion carried unanimously. F. Retirement Information for Lynn McKheen, Court Administrator, 41-A District Court Motion by Varney, supported by Marsh, to approve the service retirement for Lynn McKheen, Court Administrator, 41-A District Court, effective June 29, 2013 with service credit of 28 years, eight months and the monthly pension amount of $6,065.91 under Option A 100% Pop-Up without Annuity Withdrawal based on a monthly final average compensation of $9,707.27 Ayes: All. Motion carried unanimously. G. Retirement Information for Diane Winterstein, Special Recreation Supervisor, Parks and Recreation Motion by Varney, supported by Baker, to approve the service retirement for Diane Winterstein, Special Recreation Supervisor, Parks and Recreation, effective June 29, 2013 with service credit of 25 years, one month and the monthly pension amount of $3,450.84 under Option A 100% Pop-Up with Annuity Withdrawal based on a monthly final average compensation of $7,060.63 Ayes: All. Motion carried unanimously. H. Retirement Information for Joel Casey, Recreation Supervisor, Parks and Recreation Motion by Baker, supported by Marsh, to approve the service retirement for Joel Casey, Recreation Supervisor, Parks and Recreation, effective June 21, 2013 with service credit of 26 years, nine months and the monthly pension amount of $3,189.75 under Option A 100% Pop-Up with Annuity Withdrawal based on a monthly final average compensation of $6,968.14. Ayes: All. Motion carried unanimously. I. Retirement Information for Robin Van Sice, Clerk of the Court, 41-A District Court Motion by Baker, supported by Henig, to approve the service retirement for Robin Van Sice, Clerk of the Court, 41-A District Court effective June 18, 2013 with service credit of 30 years, nine months and the monthly pension amount of $5,451.00, which  is limited to 70% of FAC under Option A 100% Pop-Up without Annuity Withdrawal based on a monthly final average compensation of $8,132.19. Ayes: All. Motion carried unanimously. J. Retirement Information for Cynthia Guzi, Senior Center Supervisor, Parks and Recreation Motion by Baker, supported by Henig, to approve the service retirement for Cynthia Guzi, Senior Center Supervisor, Parks and Recreation effective June 25, 2013 with service credit of 30 years, eleven months and the monthly pension amount of $4,505.08, which is limited to 70% of FAC under Option C with Annuity Withdrawal based on a monthly final average compensation of $7,007.14. Ayes: All. Motion carried unanimously. K. Retirement Information for Steven Guitar, Community Relations Director Motion by Varney, supported by Henig, to approve the service retirement for Steven Guitar, Community Relations Director, effective June 18, 2013 with service credit of 27 years, one month and the monthly pension amount of $8,169.15 under Option A 100% Pop-Up without Annuity Withdrawal based on a monthly final average compensation of $13,864.45 (subject to Internal Revenue Code (IRC) Section 415(b)(1)(A) annual pension limitation of $89,674 which is the 2013 dollar limit for a public general employee retiring at age 50). Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status- Donald Phillips (Deceased) Motion by Henig, supported by Weiler, to approve termination of straight life option benefits for retiree, Donald Phillips, due to his death on July 12, 2013. Ayes: All. Motion carried unanimously. B. Change in Retiree Status- John Blaskowski (Deceased) Motion by Baker, supported by Marsh, to approve Jeanne Blaskowski (survivor/retiree) to receive Option A benefits equal to 100% that of  the deceased retiree John Blaskowski in the monthly gross amount of $2,139.93. Ayes: All. Motion carried unanimously. C. Change in Retiree Status- Delores Poznanski (Deceased) Motion by Henig, supported by Baker, to approve termination of straight life option benefits for retiree, Delores Poznanski, due to her death on June 26, 2013. Ayes: All. Motion carried unanimously. D. Pension Administration Comments: None E. Trustee Comments: None ADJOURN: Motion by Varney, supported by Weiler, to adjourn the meeting at 2:10 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, _________________________ Brian Baker, Secretary