General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, October 16, 2014 ___________________________________________________________________ __ _ __ _ Location: Room – City Council Conference Room #201 40555 Utica Road, Sterling Heights, MI 48313 Telephone: (586) 446-2331 Chairperson Weiler called the meeting to order at 1:35 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 Varney, to approve the agenda as amended for the inclusion of an invoice under Consent Agenda Item D. 1. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Baker, supported by Marsh, to approve the minutes of the regular meeting held September 18, 2014. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None APPROVAL OF TRUSTEE ELECTION RESULTS Motion by Baker, supported by Henig to certify the trustee election results provided by the City Clerk as follows: Candidate # of Votes Election Results Todd Marsh *by nomination 3-year term ending process October 15, 2017 *City Clerk Mark Carufel has formally notified the Pension Administration office that only one nomination for GERS Trustee - Todd Marsh was received by the nomination deadline of September 29, 2014. Election protocol is such that no write in ballots are accepted during an election, thereby eliminating the need for a formal election and permitting Todd Marsh to be sworn in as Trustee. ELECTION OF CHAIRPERSON / VICE CHAIR In follow up to the certification of election results in which Todd Marsh was elected to a full three year trustee term expiring October 15, 2017, the Chairperson and Vice Chair positions are required to be filled for the current 2014/2015 year. Motion by Marsh, supported by Henig, to nominate and elect Trustee Richard Weiler as Chairperson and Secretary Brian Baker as Vice Chairperson. Both candidates accepted the nomination. Ayes: All. Motion carried unanimously. REPORT FROM LEGAL COUNSEL Michaud informed the Board that the tentative investment consultant contract with Morgan Stanley was currently under review and was expected to be finalized for signing within a few days. Michaud 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 D-1. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for October 1, 2014 from Comerica Bank showing 349 active retirees with a payout for September 2014 of $845,514.05 and a year-to-date payout of $8,480,542.39. B. Cash and Asset Statements as of September 30, 2014 from Comerica Bank and Merrill Lynch showing a total market value of $116,221,609.36 comprised as follows: Desired Actual Bank/Money Market Value Allocation Percentage Manager 0% 0.72% Comerica Bank $ 838,909.26 21.33% 15.57% PIMCO 18,098,932.42 10.67% 7.70% McDonnell 8,942,309.52 15% 15.69% Earnest Partners 18,236,583.64 8% 9.29% Herndon Capital 10,794,470.46 8% 9.76% MFS 11,348,168.66 5.33% 7.05% Victory 8,191,680.31 5.33% 7.02% Winslow 8,153,112.97 5.33% 7.08% Janus Capital 8,225,210.67 8.5% 7.33% INVESCO 8,522,029.97 8.5% 9.07% Allianz - NFJ 10,542,684.08 Cohen & Steers – 4% 3.72% 4,327,517.40 REIT C. Correspondence 1. Merrill Lynch AIM quarterly performance reports in CD-ROM format for the second quarter 2014. 2. August 29, 2014 Settlement Report – securities litigation.\ 3. Email correspondence and letters sent to Merrill Lynch dated September 2, 2014 regarding nominal holdings for Simon Properties. 4. Wire notification from Merrill Lynch dated September 3, 2014 confirming nominal holding account set up for Simon Properties (100 shares). 5. Email correspondence and letters sent to Merrill Lynch and Comerica Bank dated September 18, 2014 regarding the transfer of funds for the payment of benefits. 6. Email correspondence and letters with Merrill Lynch dated September 19, 2014 regarding the authorization of the payment of money manager fees. 7. Wire transfer notification received from Merrill Lynch dated September 19, 2014 confirming payment of money manager fees. 8. Wire transfer notification received from Merrill Lynch dated September 24, 2014 regarding the transfer of funds for the payment of benefits. 9. Letter sent to Preqin dated September 22, 2014 regarding status of real estate portfolio holdings. 10. Email correspondence received from Graystone – The Brice Group dated September 26, 2014 regarding the departure of Bill Gross from PIMCO. 11. “Pension & Investments” magazines dated September 15 and 29, 2014.  D. 1. Payable from City Assets for the service rendered on October 2, 2014 Actuarial EDRO calculation fees from Gabriel Roeder Smith & Company in the amount of $1,050 (to be reimbursed by participant and alternate payee – October 2, 2014 report). REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Vera Micklash, Secretary to the Police Chief, Police Department Motion by Varney, supported by Marsh, to approve the service retirement for Vera Micklash, Secretary to the Police Chief, Police Department effective September 5, 2014 with service credit of 26 years and the monthly pension amount of $2,573.51 under Option B 50% Pop-Up with annuity withdrawal based on a monthly final average compensation of $5,048.38. Ayes: All. Motion carried unanimously. B. Retirement Information for Teri Golpe, Technical Secretary, Police Department Motion by Baker, supported by Varney, to approve the service retirement for Teri Golpe, Technical Secretary, Police Department effective September 5, 2014 with service credit of 18 years, eleven months and the monthly pension amount of $1,555.71 under Option B 50% Pop- Up with annuity withdrawal based on a monthly final average compensation of $4,307.64. Ayes: All. Motion carried unanimously. C. Retirement Information for Roy Palmeri (subject to EDRO), Emergency Dispatcher, Police Department Motion by Baker, supported by Henig, to approve the service retirement for Roy Palmeri (subject to EDRO), Emergency Dispatcher, Police Department effective September 5, 2014 with service credit of 26 years and the monthly pension (participant) amount of $2,840.50 under EDRO Straight Life Option without annuity withdrawal, based upon a monthly final average compensation of $6,958.94 (subject to reimbursement of additional actuarial fees). Ayes: All. Motion carried unanimously. D. Revised EDRO Information for Kathleen Barthauer (Roy Palmeri EDRO) Motion by Baker, supported by Henig, to approve the revised alternate payee retirement benefit for Kathleen Barthauer (Roy Palmeri EDRO), coinciding with revised benefit effective September 5, 2014 with the monthly pension amount of $1,174.71 under EDRO Straight Life Option without annuity withdrawal based on Actuary’s EDRO re-calculation due to participant retiring prior to age 60. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Survivor Beneficiary Status – Patrick Donnelly (Deceased) Motion by Marsh, supported by Henig, to approve termination of benefits for survivor beneficiary, Patrick Donnelly, due to his death on September 11, 2014. Ayes: All. Motion carried unanimously. B. Pension Administration Comments – Hessell presented the draft agenda for the special meeting of December 3, 2014. Discussion ensued with regard to a number of matters that required follow up. Motion by Baker, supported by Henig, to approve the agenda for the December 3, 2014 special meeting as presented. Ayes: All. Motion carried unanimously. C. Trustee Comments - None. . ADJOURN: Motion by Varney, supported by Marsh, to adjourn the meeting at 2:02 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Brian Baker, Secretary