General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, April 17, 2014 ___________________________________________________________________ __ _ __ _ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Baker called the meeting to order at 1:32 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 Marsh, supported by Henig, to approve agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting held March 20, 2014. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL –MICHIGAN LEGISLATIVE UPDATE: Tom Michaud reviewed the Michigan legislative update memo with the Board. House Bill No. 4001 has moved on to the Senate Committee on Government Operations and proposes to set statewide standards governing fees and costs that may be charged for responding to record requests under FOIA. House Bill 4804 would amend Public Employment Relations Act (PERA) to allow municipalities to prohibit the offering of a defined benefit plan through the collective bargaining process. The adoption of a resolution, ordinance or charter provision would be required in order to preempt PERA. Motion by Marsh, supported by Henig, to receive and file the Michigan legislative update memo prepared by VanOverbeke Michaud & Timmony, P.C. Ayes: All. Motion carried unanimously. Michaud also commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Marsh, supported by Varney, to receive and file consent items I A through I C. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for April 1, 2014 from Comerica Bank showing 347 active retirees with a payout for March 2014 of $839,836.77 and a year-to-date payout of $3,348,911.46. B. Cash and Asset Statements as of March 31, 2014 from Comerica Bank and Merrill Lynch showing a total market value of $117,087,498.00 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.75% Comerica Bank $ 879,683.62 21.33% 15.18% PIMCO 17,776,311.79 10.67% 7.47% McDonnell 8,749,165.66 15% 15.30% Earnest Partners 17,910,453.92 8% 8.93% Herndon Capital 10,462,202.57 8% 9.41% MFS 11,019,891.85 5.33% 7.31% Victory 8,556,991.97 5.33% 7.47% Winslow 8,745,434.44 5.33% 7.43% Janus Capital 8,696,534.24 8.5% 7.53% Thornburg 8,813,634.08 8.5% 9.09% Allianz - NFJ 10,646,795.26 Cohen & Steers – 4% 4.13% 4,830,398.60 REIT C. Correspondence 1. February 28, 2014 Settlement Report – securities litigation claims. 2. Q4 2013 Comprehensive AIM Report in CD-ROM format. 3. Wire transfer notification from Merrill Lynch dated March 6, 2014 confirming payment of money manager fees. 4. Letter received from Comerica Bank dated March 13, 2014 regarding final payment settlement – Comerica Securities Lending Litigation. 5. Email correspondence from Merrill Lynch dated March 18, 2014 regarding money manager watch update. 6. Memo to City Manager dated March 17, 2014 regarding PIMCO fixed income manager status. 7. Letter and email correspondence with Merrill Lynch dated March 20, 2014 regarding the transfer of funds for the payment of benefits. 8. Email correspondence with Merrill Lynch dated March 21, 2014 regarding authorization to pay money manager fees. 9. Wire transfer notification from Merrill Lynch dated March 21, 2014 confirming payment of money manager fees. 10. Wire transfer notification received from Merrill Lynch dated March 27, 2014 confirming the transfer of funds for the payment of benefits. 11. “Institutional Investor” magazine dated April 2014. 12. “The Institutional Real Estate Letter” magazine dated April 2014. 13. “Pension & Investments” magazine dated March 17 & 31, 2014. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Debra Taylor, Administrative Secretary, Police Department Motion by Marsh, supported by Henig, to approve the service retirement for Debra Taylor, Administrative Secretary, Police Department, effective March 22, 2014 with service credit of 25 years, nine months and the monthly pension amount of $2.232.72 under option B 50% pop-up with annuity withdrawal based on a monthly final average compensation of $4,494.73. Ayes: All. Motion carried unanimously. III. NEW BUSINESS A. Application for EDRO Alternative Payee Benefit, Sherri Coffin, (William Coffin, Department of Public Works) Motion by Henig, supported by Marsh, to receive and file the application for EDRO alternative payee benefit, Sherri Coffin (William Coffin, Department of Public Works) Ayes: All. Motion carried unanimously. B. Pension Administration Comments 1. Draft Agenda May 21, 2014 Special Meeting Motion by Marsh, supported by Henig, to approve the agenda for the May 21, 2014 special meeting as presented. Ayes: All. Motion carried unanimously. 2. Update of Disability Retiree Medical Exams and Income Verification Motion by Varney, supported by Marsh, to receive and file the status report for the Disability Retiree Medical Exams and Income Verification. Ayes: All. Motion carried unanimously. C Trustee Comments - None ADJOURN: Motion by Varney, supported by Baker, to adjourn the meeting at 1:49 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer