General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, July 17, 2014 ___________________________________________________________________ __ _ __ _ Location: Room #202 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: Rich Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: None. ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. 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 Baker, supported by Henig, to approve the minutes of the regular meeting held June 19, 2014. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud had no formal report but commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Baker, supported by Varney, to receive and file consent items I A through I D-1. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for July 1, 2014 from Comerica Bank showing 349 active retirees with a payout for June 2014 of $845,416.87 and a year-to-date payout of $5,941,901.95. B. Cash and Asset Statements as of June 30, 2014 from Comerica Bank and Merrill Lynch showing a total market value of $119,326,992.28 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.74% Comerica Bank $887,134.87 21.33% 15.24% PIMCO 18,181,788.96 10.67% 7.48% McDonnell 8,932,348.62 15% 15.73% Earnest Partners 18,766,558.72 8% 9.04% Herndon Capital 10,789,122.51 8% 9.54% MFS 11,383,672.69 5.33% 7.12% Victory 8,493,581.27 5.33% 7.03% Winslow 8,385,886.32 5.33% 7.01% Janus Capital 8,363,745.69 8.5% 7.53% Thornburg 8,987,867.38 8.5% 9.32% Allianz - NFJ 11,116,186.72 Cohen & Steers – 4% 4.22% 5,039,098.53 REIT C. Correspondence 1. Merrill Lynch AIM quarterly performance- Q1 2014 in CD-ROM format. 2. May 30, 2014 Portfolio Monitoring Report – Class Actions 3. Class Action Settlement Report dated May 30, 2014. 4. Email correspondence and letter dated June 19, 2014 sent to Merrill Lynch regarding the transfer of funds for the payment of benefits. 5. Wire transfer notifications dated June 26, 2014 from Merrill Lynch regarding the transfer of funds to pay benefits. 6. “Pension & Investments” magazines dated June 23 and July 7, 2014. D. 1. Payable from System Assets for the quarterly service period ending June 30, 2014: Actuarial Services from Gabriel Roeder Smith & Co. in the amount of $2,500 for the Section 415 Limit Calculations 2013 and 2014. REGULAR AGENDA: II. OLD BUSINESS: A. Annual Review of Adjustments to “Initial 70% AFC Limit” for Gross Monthly Pensions Motion by Marsh, supported by Henig, to acknowledge the increase of the “Initial 70% AFC Limit” effective July 1, 2014 and the increase of the gross monthly pensions payable August 1, 2014 as detailed in the following table: Revised 70% Revised Gross Monthly Name AFC Pension D. Mike Dickey $5,489.91 $5,185.35 Dino C. Ranella $6,465.15 $5,779.68 Larry D’Angelo $3,960.73 $3,383.53 Frank Gorlitz $4,077.33 $3,896.25 Tina Hotton $3,039.64 $2,980.32 Cynthia Guzi $5,003.10 $4,944.24 Edward Piet $4,416.25 $4,416.25 Mefford Couch $8,335.82 $5,530.16 Robin Van Sice $5,806.38 $5,507.44 James Carpenter $5,924.07 $4,470.58 Robert Ervin $5,805.78 $4,706.86 Judith Kotulis $4,612.82 $4,153.91 Thomas Hlivka $4,982.70 $4,424.50 Dan Browning $5,146.89 $3,955.63 Theodore Boehmer $7,913.68 $6,449.80 Colleen $4,106.26 $3,590.60 Muraszewski Ayes: All. Motion carried unanimously. B. Approval of Payment Schedule for QEBA Participants Motion by Varney, supported by Henig, to receive and adopt the 2014 payment schedule for the QEBA participants as specified in Section Two of the Qualified Excess Benefit Arrangement Trust document. Ayes: Weiler, Varney, Marsh, Henig Abstained: Baker Motion carried. III. NEW BUSINESS: A. Application for Service Retirement for Roy Palmeri (subject to EDRO), Emergency Dispatcher, Police Department Motion by Marsh, supported by Varney, to receive and file the application for service retirement, Roy Palmeri (subject to EDRO), Emergency Dispatcher, Police Department. Ayes: All. Motion carried unanimously. B. Application for Service Retirement, Vera Micklash, Secretary to the Police Chief, Police Department Motion by Baker, supported by Marsh, to receive and file the application for service retirement, Vera Micklash, Secretary to the Police Chief, Police Department. Ayes: All. Motion carried unanimously. C. Pension Administration Comments –Proposed August 27, 2014 Special Meeting Agenda Motion by Baker, supported by Marsh, to approve the Wednesday August 27, 2014 Special Meeting Agenda. Ayes: All. Motion carried unanimously. D. Trustee Comments – MAPERS 2014 Fall Conference .Motion by Baker, supported by Weiler, to approve the attendance of Todd Marsh and Paul Henig at the MAPERS 2014 Fall Conference on September 14 –16, 2014 at the Grand Traverse Resort & Spa, Acme, Michigan subject to their availability to attend. Ayes: All. Motion carried unanimously. ADJOURN: Motion by Baker, supported by Weiler, to adjourn the meeting at 1:43 p.m. Ayes: All. Motion carried unanimously.  Respectfully Submitted, ___________________________________ Brian Baker, Secretary