General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, September 19, 2013 ___________________________________________________________________ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Baker called the meeting to order at 1:31 p.m. BOARD MEMBERS PRESENT: Brian Baker, Acting Chairperson Jennifer Varney, Acting Secretary /Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson.(Excused) ALSO PRESENT: Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Varney, supported by Marsh, 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 August 15, 2013 and the special quarterly meeting held August 21, 2013. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL – LEGISLATIVE UPDATE Michaud reviewed a legislative update memo on proposed House Bill No. 4314 that would amend the Freedom of Information Act (the “FOIA”) to establish the Open Government Commission within the Michigan Department of Civil Rights. Motion by Marsh, supported by Henig, to receive and file the legislative update memo. Ayes: All. Motion carried unanimously. Michaud also commented on issues as they appeared on the agenda. CONSENT AGENDA: Motion by Marsh, supported by Henig, to receive and file consent items I A through I C-8. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for September 1, 2013 from Comerica Bank showing 344 active retirees with a payout for August 2013 of $889,849.99 and a year-to-date payout of $7,158,195.82. B. Cash and Asset Statements as of August 31, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $108,253,464.44 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.85% Comerica Bank $915,436.08 21.33% 18.20% PIMCO 19,699,417.70 10.67% 8.61% McDonnell 9,321,194.70 15% 13.82% Earnest Partners 14,958,507.05 8% 8.26% Herndon Capital 8,945,743.65 8% 8.73% MFS 9,453,251.30 5.33% 6.85% Victory 7,419,959.13 5.33% 7.16% Winslow 7,768,353.46 5.33% 7.27% Janus Capital 7,864,972.57 8.5% 7.43% Thornburg 8,046,001.99 8.5% 8.85% Allianz - NFJ 9,585,456.65 Cohen & Steers – 4% 3.95% 4,275,170.16 REIT C. Correspondence 1. Portfolio Monitoring Report, Settlement Report and Litigation Update dated July 26, 2013. 2. Email correspondence and letter with Comerica dated August 13, 2013 regarding foreign dividend tax recovery service.  3. Email correspondence and letter sent to Merrill Lynch and Comerica dated August 16, 2013 regarding the transfer of funds for the payment of benefits. 4. Email correspondence with Merrill Lynch dated August 16, 2013 regarding the authorization for payment of money manager fees. 5. Wire transfer notification received from Merrill Lynch dated August 22, 2013 confirming transfer of funds for the payment of retirement benefits and payment of money manager fees 6. Update to Client Agreement received from Merrill Lynch dated August 27, 2013 regarding approach to aggregation of accounts for consults fee. 7. “Pension & Investments” magazine dated August 19 & September 2, 2013. 8. “The Institutional Real Estate Letter – Americas” magazine dated September 2013. REGULAR AGENDA: II. OLD BUSINESS: A. Disability Retiree Medical Re-examination Report for Michael Borucki Motion by Varney, supported by Marsh, to receive and file the Disability Retiree Medical Re-examination Report for Michael Borucki which recommends continuation of disability retiree status. Ayes: All. Motion carried unanimously. B. GERS Summary Annual Report (SAR) – Public Act 347 of 2012 Compliance Motion by Marsh, supported by Henig, to receive and file the GERS Summary Annual Report (SAR) which was updated for compliance with Public Act 347 of 2012 and to authorize for posting to the City website. Ayes: All. Motion carried unanimously. C. GERS Statement of Objectives, Policies and Guidelines Revised Motion by Varney, supported by Marsh, to receive and approve the September 19, 2013 restated GERS Statement of Objectives, Policies and Guidelines regarding fund investments. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status- Carol McLean (Deceased) Motion by Henig, supported by Marsh, to approve termination of option A benefits for retiree, Carol McLean, due to her death on August 15, 2013 and the death of her spouse on June 15, 2012. Ayes: All. Motion carried unanimously. B. Application for Deferred Retirement for Diane Curr, MAPE Technical / Office Union, Community Relations Motion by Varney, supported by Marsh, to receive and file the application for deferred retirement for Diane Curr, MAPE Technical / Office Union, Community Relations. Ayes: All. Motion carried unanimously. C. Pension Administration Comments: Hessell updated the Board with regard to the status of the annual retiree / beneficiary verification process which is over 50% complete. D. Trustee Comments: None ADJOURN: Motion by Henig, supported by Marsh, to adjourn the meeting at 2:02 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer