General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, October 17, 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: Richard 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. and Walt Hessell, Pension Administrator. APPROVAL OF AGENDA: Motion by Marsh, supported by Henig, 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 September 19, 2013. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL – SECURTIES LENDING CLASS ACTION UPDATE Michaud briefed the Board in regard to the ongoing class action suit involving the Comerica securities lending matter. He stated that the Court had preliminarily approved an $11 million gross settlement to be shared among the class action members with a loss recovery approximating 20 cents on the dollar. 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 October 1, 2013 from Comerica Bank showing 343 active retirees with a payout for September 2013 of $835,170.82 and a year-to-date payout of $7,993,366.44. B. Cash and Asset Statements as of September 30, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $112,120,896.90 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.82% Comerica Bank $920,254.63 21.33% 17.60% PIMCO 19,734,791.02 10.67% 8.11% McDonnell 9,094,766.99 15% 14.10% Earnest Partners 15,808,089.73 8% 8.22% Herndon Capital 9,218,181.76 8% 8.73% MFS 9,789,012.98 5.33% 6.95% Victory 7,793,640.26 5.33% 7.38% Winslow 8,270,435.72 5.33% 7.34% Janus Capital 8,228,877.87 8.5% 7.69% Thornburg 8,615,699.89 8.5% 9.13% Allianz - NFJ 10,238,555.89 Cohen & Steers – 4% 3.93% 4,408,590.16 REIT C. Correspondence 1. Merrill Lynch AIM Report Q2 2013 in CD-ROM format. 2. Email correspondence and letter sent to Merrill Lynch and Comerica dated September 19, 2013 regarding the transfer of funds for the payment of benefits. 3. Wire transfer notifications received from Merrill Lynch dated September 25, 2013 confirming the transfer of funds for the payment of benefits. 4. Email correspondence received from Merrill Lynch dated  October 4, 2013 regarding investment performance monitoring update for money managers. 5. Email correspondence sent to Comerica Bank dated October 7, 2013 regarding opt-out of foreign dividend tax recovery. 6. Portfolio Monitoring Report and Settlement Report – August 30, 2013. 7. “Institutional Investor Alpha” magazine dated Summer 2013. 8. “Pension & Investments” magazines dated September 16 & 30, 2013. REGULAR AGENDA: II. OLD BUSINESS: A. Deferred Retirement Information for Diane Curr, MAPE Technical / Office Union, Community Relations Motion by Baker, supported by Henig, to approve the deferred service retirement for Diane Curr, MAPE Technical / Office Union, Community Relations, effective October 3, 2013 with service credit of 16 years and 11 months with the monthly pension amount of $1,079.41 under Option C without annuity withdrawal based on a monthly final average compensation of $2,833.95. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status- Charles LaCorte (Deceased) Motion by Henig, supported by Marsh, to approve termination of straight life option benefits for retiree, Charles LaCorte, due to his death on July 25, 2013. Ayes: All. Motion carried unanimously. B. Change in Retiree Status- Elizabeth Bailey (Deceased) Motion by Baker, supported by Henig, to approve termination of straight life option benefits for retiree, Elizabeth Bailey, due to her death on September 29, 2013. Ayes: All. Motion carried unanimously. C. Processing of Pop-Up Election for Mary Ann Zak Motion by Henig, supported by Marsh, to approve the processing  of the pop-up election for retiree Mary Ann Zak, effective October 3, 2013 (spouse/beneficiary date of death) with a revised monthly benefit of $1,680.91. Ayes: All. Motion carried unanimously. D. Pension Administration Comments- GERS Special Meeting Agenda December 2013 Motion by Baker, supported by Varney, to approve the agenda for the December 4, 2013 special meeting as revised. E. Trustee Comments: None ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 1:45 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Brian Baker, Secretary