General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, March 20, 2014 ___________________________________________________________________ __ _ __ _ Location: Room #205 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Baker called the meeting to order at 1:34 p.m. BOARD MEMBERS PRESENT: Brian Baker, Acting Chairperson Jennifer Varney, Acting Secretary / Treasurer Paul Henig, Trustee Todd Marsh, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (Excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, VanOverbeke Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Varney, supported by Henig, to approve agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Henig, to approve the minutes of the regular meeting held February 20, 2014 and the special meeting held February 27, 2014. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL –PUBLIC ACT 347 COMPLIANCE: Tom Michaud reviewed the Public Act 347 Compliance Checklist with the Board noting that the current pension administration was fairly current with all matters. Hessell noted that the Summary Annual Report requires a 7- year rolling calendar investment performance figure and that Varney had made a specific request of The Brice Group – Merrill Lynch so that the information would be provided with the quarterly investment performance analysis report. Motion by Marsh, supported by Henig, to receive and file the Public Act 347 Compliance Checklist and legislative update memo prepared by VanOverbeke Michaud & Timmony, P.C. Ayes: All. Motion carried unanimously. Michaud then provided a briefing in regard to the Caterpillar securities litigation matter. An amended complaint was required due to a jurisdictional issue involving proof of government plan status and verification of domestic residency for the Board. Motion by Marsh, supported by Henig, to receive and file the Caterpillar securities litigation update report and approve the amended complaint as recommended by Michaud. Ayes: All. Motion carried unanimously. Michaud remarked that the Comerica Bank securities lending litigation class action settlement was now finalized and Hessell confirmed receipt of the settlement check in the amount of $10,351.96. Michaud stated that the class action recovery overall approximated 20 cents on the dollar. Michaud also commented on items 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 and to approve the Consent Agenda Item I.D. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for March 1, 2014 from Comerica Bank showing 345 active retirees with a payout for February 2014 of $839,243.38 and a year-to-date payout of $2,509,074.69. B. Cash and Asset Statements as of February 28, 2014 from Comerica Bank and Merrill Lynch showing a total market value of $117,622.110.21 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.03% Comerica Bank $ 28,171.58 21.33% 15.20% PIMCO 17,876,287.36 10.67% 7.45% McDonnell 8,765,567.51 15% 15.12% Earnest Partners 17,785,073.01 8% 8.75% Herndon Capital 10,297,098.72 8% 9.21% MFS 10,834,621.37 5.33% 7.62% Victory 8,959,680.01 5.33% 8.00% Winslow 9,406,142.45 5.33% 7.95% Janus Capital 9,356,682.77 8.5% 7.58% Thornburg 8,921,619.23 8.5% 8.99% Allianz - NFJ 10,573,512.91 Cohen & Steers – 4% 4.10% 4,817,653.29 REIT C. Correspondence 1. Caterpillar Litigation Report dated December 31, 2013. 2. Securities litigation Settlement Report dated January 31, 2014. 3. Email correspondence and letter sent to Merrill Lynch and Comerica Bank dated 4. February 21, 2014 regarding the transfer of funds for the payment of benefits. 4. Email correspondence sent to Merrill Lynch dated February 21, 2014 authorizing the payment of money manager fees 5. Wire transfer notifications received from Merrill Lynch dated February 25, 2014 confirming the transfer of funds for the payment of benefits. 6. “Pension & Investments” magazines dated February 17 and March 3, 2014. 7. “Institutional Investors” magazines dated Volume 6 Winter 2014 and March 2014. D. Approve Invoices for Payment 1. Payable from System Assets for the quarter ending December 31, 2013: Quarterly management fees from McDonnell Investment in the amount of $5,037.64. 2. Payable from City Assets for the service period ending February 28, 2014:  Actuarial EDRO calculation fees from Gabriel Roeder Smith & Company in the amount of $1,000.00 (reimbursed by participant and alternate payee) Annual Actuarial Valuation and related actuarial services from Gabriel Roeder Smith & Company in the amount of $13,600.00 REGULAR AGENDA: II. OLD BUSINESS: A. EDRO Alternative Payee Information for Lynn Bowman f/k/a Lynn Hodson (William Hodson, DPW Field Unit, EDRO) Motion by Varney, supported by Marsh, to approve the EDRO alternate payee benefit for Lynn Bowman f/k/a Lynn Hodson (William Hodson, DPW Field Unit, EDRO) effective January 13, 2014 with the monthly pension amount of $327.61 under straight life without annuity withdrawal. Ayes: All. Motion carried unanimously. B. Deferred Vested Retirement Information for William Hodson (subject to EDRO), DPW Field Unit, Department of Public Works Motion by Varney, supported by Henig, to approve the deferred vested service retirement for William Hodson (subject to EDRO), DPW Field Unit, Department of Public Works effective January 13, 2014 with service credit of 20 years and one month with the monthly pension amount of $1,247.46 under straight life without annuity withdrawal based on a monthly final average compensation of $3,435.33.. Ayes: All. Motion carried unanimously. III. NEW BUSINESS A. Application for Service Retirement, Vaux Adams, Sewer Division Supervisor, Department of Public Works Motion by Henig, supported by Marsh, to receive and file the application for service retirement, Vaux Adams, Sewer Division Supervisor, Department of Public Works. Ayes: All. Motion carried unanimously. B. Pension Administration Comments – None. C. Trustee Comments – MAPERS 2014 Spring Conference The Board discussed the merits of attending the conference, however due to various work schedule conflicts all members declined to attend. ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 1:47 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer