General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, November 21, 2013 ___________________________________________________________________ __ _ __ _ Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:40 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 Baker, supported by Marsh, to approve the agenda as amended to include a legal services invoice for payment under Consent Agenda Item I D 1. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Varney, supported by Henig, to approve the minutes of the regular meeting held October 17, 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 case continues to progress and that the next hearing is scheduled for the second week in December 2013. Settlement payments will then be made several months later with loss recoveries approximating 20 cents on the dollar. Michaud also commented on issues as they appeared on the agenda. CONSENT AGENDA: Motion by Varney, supported by Marsh, to receive and file consent items I A through I C-12 and approve I D 1 - 3. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for November 1, 2013 from Comerica Bank showing 344 active retirees with a payout for October 2013 of $833,650.33 and a year-to-date payout of $9,615,829.05. B. Cash and Asset Statements as of October 31, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $114,883,732.45 comprised as follows: Actual Desired Allocation Bank/Money Manager Market Value Percentage 0% 0.74% Comerica Bank $860,258.37 21.33% 17.12% PIMCO 19,662,388.13 10.67% 7.77% McDonnell 8,931,404.77 15% 14.32% Earnest Partners 16,452,652.62 8% 8.39% Herndon Capital 9,635,548.26 8% 8.87% MFS 10,191,148.33 5.33% 7.08% Victory 8,129,231.82 5.33% 7.54% Winslow 8,664,454.72 5.33% 7.40% Janus Capital 8,501,247.42 8.5% 7.58% Thornburg 8,705,233.27 8.5% 9.17% Allianz - NFJ 10,537,183.40 Cohen & Steers – 4% 4.02% 4,612,981.34 REIT C. Correspondence 1. Portfolio Monitoring Report dated September 27, 2013. 2. Settlement Report dated September 27, 2013. 3. Litigation Report as of September 30, 2013. 4. Political Contribution Disclosure From received from Gabriel Roeder Smith & Company dated October 14, 2013.  5. Email correspondence and letter sent to Merrill Lynch and Comerica Bank dated October 17, 2013 regarding the transfer of funds for the payment of benefits. 6. Annual Disclosure Regarding Select Pricing Policy – McDonnell received from Merrill Lynch dated October 18, 2013. 7. Portfolio Monitoring Report dated October 25, 2013. 8. Wire transfer notifications received from Merrill Lynch dated October 28, 2013 confirming the transfer of funds for the payment of benefits. 9. Notice of Pendency of Class Action – Comerica Bank & Munder Capital Management. 10. Notice of Pendency of Class Action – Google Inc Class C, Shareholder Litigation. 11. “Pension & Investments” magazines dated October 14 & 28 and November 11, 2013. 12. “The Institutional Real Estate Letter” dated October & November 2013. D. 1. Payable from City Assets for the service period ending September 30, 2013: Quarterly investment consulting fees from Merrill Lynch Consults in the amount of $6,485.33; quarterly custodian banking service fees from Comerica Bank in the amount of $4,824.04 and legal services (nine month period) from VanOverbeke Michaud & Timmony, P.C. in the amount of $4,483.05. 2. Payable from System Assets for the quarterly service period ending September 30, 2013: Quarterly management fees from McDonnell Investment in the amount of $5,143.87. 3. Payable from System Assets for the quarterly service period ending December 31, 2013: Quarterly management fees from Merrill Lynch Consults - MFS in the amount of $18,504.91; from Merrill Lynch Consults SPA – McDonnell in the amount of $1,823.91; from Merrill Lynch Consults – Janus in the amount of $15,555.66; from Merrill Lynch Consults – Winslow in the amount of $13,890.55; from Merrill Lynch Consults – Victory in the amount of $13,205.79; from Merrill Lynch Consults – Herndon in the amount of $15,135.54; from Merrill Lynch Consults – NFJ in the amount of $18,906.60; from Merrill Lynch Consults – Thornburg in the amount of $14,953.12; from Merrill Lynch Consults – PIMCO in the amount of $22,350.09 and from Merrill Lynch Consults – Earnest in the amount of $29,883.22. REGULAR AGENDA: II. OLD BUSINESS: A. Application and Service Retirement Information for Cheryl Brewer, Deputy Court Clerk, 41-A District Court Motion by Baker, supported by Varney, to receive and file the service retirement application for Cheryl Brewer, Deputy Court Clerk, 41-A District Court and to approve her service retirement, effective October 18, 2013 with service credit of 22 years with the monthly pension amount of $1,949.26 under straight life without annuity withdrawal based on a monthly final average compensation of $3,859.92. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Processing of Pop-Up Election for Gerald Rumpz Motion by Baker, supported by Marsh, to approve the processing of the pop-up election for retiree, Gerald Rumpz, effective November 3, 2013 (spouse/beneficiary date of death) with a revised monthly benefit of $1,795.54. Ayes: All. Motion carried unanimously. B. Alternate Payee Application for Service Retirement, Kathleen Barthauer, (Roy Palmeri, Emergency Dispatcher, Police Department EDRO) Motion by Marsh, supported by Henig, to receive and file the alternate payee application for service retirement for Kathleen Barthauer, (Roy Palmeri, Emergency Dispatcher, Police Department EDRO) Ayes: All. Motion carried unanimously. C. Pension Administration Comments- None D. Trustee Comments: None ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 1:50 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ____________________________ Brian Baker, Secretary