General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, March 19, 2015 ___________________________________________________________________ __ _ ___ Location: Room – City Finance Conference Room #204 40555 Utica Road, Sterling Heights, MI 48313 Telephone: (586) 446-2331 Acting Chairperson Varney called the meeting to order at 1:30 p.m. BOARD MEMBERS PRESENT: Jennifer Varney, Acting Chairperson, Acting Secretary, Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Rich Weiler, Chairperson (excused) Brian Baker, Secretary (excused) ALSO PRESENT: Thomas Michaud, Legal Counsel, VanOverbeke Michaud &Timmony, P.C.; Walt Hessell, Pension Administrator APPROVAL OF AGENDA: Motion by Marsh, supported by Henig, to approve the agenda as amended for the inclusion of an actuary fee invoice under Consent Agenda Item I D.1. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting held February 19, 2015 and the special quarterly meeting held March 5, 2015. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL No formal report. 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 as amended. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: 1  A. Benefit register listing for March 1, 2015 from Comerica Bank showing 351 active retirees with a payout for February 2015 of $854,074.32 and a year-to-date payout of $2,562,793.41. B. Cash and Asset Statements as of February 28, 2015 from Comerica Bank and Merrill Lynch showing a total market value of $119,799,693.64 comprised as follows: Desired Allocation Actual Percentage Bank/Money Manager Market Value 0% 0.02% Comerica Bank $ 22,097.15 21.33% 15.45% PIMCO 18,510,538.95 10.67% 7.74% McDonnell 9,272,552.66 15% 16.86% Earnest Partners 20,197,310.96 8% 9.22% Herndon Capital 11,041,203.35 8% 10.24% MFS 12,271,772.67 5.33% 7.15% Victory 8,569,149.32 5.33% 6.95% Winslow 8,326,483.38 5.33% 7.18% Janus Capital 8,595,643.90 8.5% 7.39% INVESCO 8,855,431.26 8.5% 8.68% Allianz - NFJ 10,401,642.24 4% 3.12% Cohen & Steers – REIT 3,735,867.80 C. Correspondence 1. Securities litigation Settlement Report dated January 30, 2015. 2. Email correspondence and letter sent to Merrill Lynch and Comerica Bank dated February 17, 2015 regarding the transfer of funds for the payment of benefits. 3. Email correspondence and letter sent to Comerica Bank dated February 19, 2015 authorizing the payment of money manager fees. 4. Wire transfer notifications received from Merrill Lynch dated February 24, 2015 confirming the transfer of funds for the payment of benefits. 5. Form ADV Part 2a Victory Capital Management. 6. “Pension & Investments” magazines dated February 23 and March 9, 2015. D. 1. Payable from City Assets for the service period ending February 28, 2015: Annual Actuarial Valuation and related actuarial services from Gabriel Roeder Smith & Company in the amount of $13,600.00. REGULAR AGENDA: II. NEW BUSINESS: A. Application for Service Retirement Under ERIP, Karen Bootz, Emergency Dispatch Shift Leader, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Karen Bootz, Emergency Dispatch Shift Leader, Police Department. Ayes: All. Motion carried unanimously. 2 B. Application for Service Retirement Under ERIP, Teresa DeRoy, Communications Officer, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Teresa DeRoy, Communications Officer, Police Department. Ayes: All. Motion carried unanimously. C. Application for Service Retirement Under ERIP, Nancy Dupre, Emergency Dispatcher, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Nancy Dupre, Emergency Dispatcher, Police Department. Ayes: All. Motion carried unanimously. D. Application for Service Retirement Under ERIP, Nancy Friedel, Emergency Dispatcher, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Nancy Friedel, Emergency Dispatcher, Police Department. Ayes: All. Motion carried unanimously E. Application for Service Retirement Under ERIP, Philip Kozlowski, Emergency Dispatcher, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Philip Kozlowski, Emergency Dispatcher, Police Department. Ayes: All. Motion carried unanimously. F. Application for Service Retirement Under ERIP, Walter Mueller, Emergency Dispatch Shift Leader, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Walter Mueller, Emergency Dispatch Shift Leader, Police Department. Ayes: All. Motion carried unanimously. G. Application for Service Retirement Under ERIP, Michele Wierzbicki, Emergency Dispatcher, Police Department Motion by Henig, supported by Marsh, to receive and file the application for service retirement under ERIP (Early Retirement Incentive Plan), Michele Wierzbicki, Emergency Dispatcher, Police Department. Ayes: All. Motion carried unanimously. H. Pension Administration Comments - None I. Trustee Comments 3  In follow up to last month’s annual actuarial valuation presentation by Gabriel Roeder Smith & Co, Trustee Henig questioned the fairness of the fees in the amount of $13,600. Varney responded that a recent actuarial firm RFP for the Police & Fire Retirement System showed that GRS was moderately priced being neither the highest nor lowest bidder. Hessell added that he believed them to be the best value overall for the fees paid given the quality and timeliness of their work. . ADJOURN: Motion by Marsh, supported by Varney, to adjourn the meeting at 1:38 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Chairperson / Acting Secretary / Treasurer 4