General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, December 19, 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: 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 Henig, supported by Marsh, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Varney, supported by Baker, to approve the minutes of the regular meeting held November 21, 2013 and the special meeting held December 4, 2013. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud had no formal report, but 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 - 2. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for December 1, 2013 from Comerica Bank showing 344 active retirees with a payout for November 2013 of $836,771.06 and a year-to-date payout of $10,452,600.11. B. Cash and Asset Statements as of November 30, 2013 from Comerica Bank and Merrill Lynch showing a total market value of $115,997,006.89 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.74% Comerica Bank $858,749.76 21.33% 16.65% PIMCO 19,314,992.14 10.67% 7.43% McDonnell 8,616,777.91 15% 14.37% Earnest Partners 16,670,625.31 8% 8.62% Herndon Capital 10,000,816.51 8% 9.09% MFS 10,548,436.53 5.33% 7.29% Victory 8,457,703.51 5.33% 7.67% Winslow 8,892,415.52 5.33% 7.60% Janus Capital 8,810,983.76 8.5% 7.60% Thornburg 8,814,643.02 8.5% 9.16% Allianz - NFJ 10,628,709.95 Cohen & Steers – 4% 3.78% 4,382,152.97 REIT C. Correspondence 1. Comerica Bank Annual Review – List of Authorized Signers dated November 14, 2013. 2. Notice of Pendency of Class Action – State Street Global Advisors dated November 20, 2013. 3. Form ADV Part 2B – Victory Capital dated November 21, 2013. 4. Email correspondence and letter sent to Merrill Lynch and Comerica Bank dated November 21, 2013 regarding the transfer of funds for the payment of benefits. 5. Wire transfer notifications received from Merrill Lynch dated November 25, 2013 confirming the transfer of funds for the payment of benefits. 6. Political Contribution and Compensation Disclosure – Merrill Lynch – The Brice Group dated December 11, 2013. 7. “Institutional Investor Alpha” magazine dated Autumn 2013. 8. “Institutional Investor” magazine dated November 2013. 9. “The Advocate” magazine dated Fall 2013. 10. Notice of Pendency of Class Action – Google Inc Class C, Shareholder Litigation. 11. “Pension & Investments” magazines dated November 25 and December 9, 2013. 12. “The Institutional Real Estate Letter” dated December 2013. D. 1. Payable from City Assets for the 2014 Calendar Membership Year: MAPERS membership renewal invoice in the amount of $100.00 2. Payable from City Assets for the service period ending November 30, 2013: Actuarial EDRO calculation fees from Gabriel Roeder Smith & Company in the amount of $1,250.00 (reimbursed by participant and alternate payee) REGULAR AGENDA: II. OLD BUSINESS: A. Alternate Payee Information for Kathleen Barthauer (Roy Palmeri, Emergency Dispatcher, EDRO) Motion by Marsh, supported by Henig, to approve the alternate payee retirement benefit for Kathleen Barthauer (Roy Palmeri EDRO), benefit effective October 31, 2013 with the monthly pension amount of $896.03 under straight life without annuity withdrawal based on Actuary’s EDRO calculation. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Eligible Domestic Relations Order (EDRO) for William Coffin Motion by Henig, supported by Weiler, to receive and file the Divorce Action / Eligible Domestic Relations Order (EDRO) Sherri Coffin vs. William Coffin as approved by pension counsel and to forward a copy to the Custodian Bank Comerica. Ayes: All. Motion carried unanimously. B. Pension Administration Comments Hessell informed the Board that out of 335 annual retiree/beneficiary verifications only two non- compliance cases remained. Second notices warning of suspension of benefits had been mailed in November. Michaud recommended the suspension of benefits until the retirees complied with the requirement. Motion by Varney, supported by Marsh, to suspend the pensions of non-compliant retirees effective with the February 1st, 2014 benefit payment. Ayes: All. Motion carried unanimously. C. Trustee Comments: None ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 1:51 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Brian Baker, Secretary