General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, April 16, 2015 ___________________________________________________________________ __ _ ___ Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:32 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Brian Baker, Secretary Jennifer Varney, Treasurer Paul Henig, Trustee Todd Marsh, Trustee BOARD MEMBERS ABSENT: None. 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 Marsh, supported by Henig, to approve the minutes of the regular meeting held March 19, 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 Baker, supported by Marsh, to receive and file consent items I A through I C. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: 1  A. Benefit register listing for April 1, 2015 from Comerica Bank showing 351 active retirees with a payout for March 2015 of $854,074.32 and a year-to-date payout of $3,416,867.73. B. Cash and Asset Statements as of March 31, 2015 from Comerica Bank and Morgan Stanley showing a total market value of $119,123,301.34 comprised as follows: Desired Allocation Actual Percentage Bank/Money Manager Market Value 0% 0.73% Comerica Bank $877,297.61 16% 15.44% Boyd Watterson 18,394,898.79 8% 7.75% WAMCO 9,231,260.12 15% 16.98% Earnest Partners 20,232,293.02 6.8% 6.90% Herndon Capital 8,217,060.12 6.8% 6.94% MFS 8,268,837.47 5% 4.97% Victory 5,917,957.92 5% 4.90% Winslow 5,842,573.33 3.4% 3.34% Janus Capital 3,973,847.65 13% 13.03% London - S&P Index 15,520,057.13 8.5% 7.35% INVESCO 8,750,785.43 8.5% 8.48% Allianz - NFJ 10,097,911.83 4% 3.19% Principal – REIT 3,798,520.92 C. Correspondence 1. February 27, 2015 Settlement Report – securities litigation claims. 2. Q4 2014 Comprehensive AIM Report in CD-ROM format. 3. Letter and email correspondence with Morgan Stanley dated March 20, 2015 regarding the transfer of funds for the payment of benefits. 4. Form ADV Part 2A Brochures for Allianz, Victory and MFS. 5. Victory Capital Suitability Checklist. 6. Notice of proposed settlement of class action regarding Jefferies Group, Inc. shareholders litigation. 7. “Pension & Investments” magazine dated March 23, 2015. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information Under ERIP for Karen Bootz, Emergency Dispatch Shift Leader, Police Department Motion by Varney, supported by Marsh, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Karen Bootz, Emergency Dispatch Shift Leader, Police Department, effective March 1, 2015 with service credit of 26 years, nine months and the monthly pension amount of $4,645.48 under straight life with annuity withdrawal based on a monthly final average compensation of $8,141.47. Ayes: All. Motion carried unanimously. B. Retirement Information Under ERIP for Teresa DeRoy, Communications Officer, Police Department 2  Motion by Henig, supported by Marsh, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Teresa DeRoy, Communications Officer, Police Department, effective March 1, 2015 with service credit of 23 years, nine months and the monthly pension amount of $3,656.91 under straight life without annuity withdrawal based on a monthly final average compensation of $6,694.57. Ayes: All. Motion carried unanimously. C. Retirement Information Under ERIP for Nancy Dupre, Emergency Dispatcher, Police Department Motion by Varney, supported by Baker, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Nancy Dupre, Emergency Dispatcher, Police Department, effective March 1, 2015 with service credit of 24 years, seven months and the monthly pension amount of $3,189.06 under option A 100% pop-up with annuity withdrawal based on a monthly final average compensation of $6,527.55. Ayes: All. Motion carried unanimously. D. Retirement Information Under ERIP for Nancy Friedel, Emergency Dispatcher, Police Department Motion by Varney, supported by Baker, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Nancy Friedel, Emergency Dispatcher, Police Department, effective March 1, 2015 with service credit of 22 years, five months and the monthly pension amount of $3,055.79 under straight life with annuity withdrawal based on a monthly final average compensation of $6,437.19. Ayes: All. Motion carried unanimously. E. Retirement Information Under ERIP for Philip Kozlowski, Emergency Dispatcher, Police Department Motion by Henig, supported by Marsh, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Philip Kozlowski, Emergency Dispatcher, Police Department, effective March 1, 2015 with service credit of 26 years, five months and the monthly pension amount of $4,325.55 under straight life with annuity withdrawal based on a monthly final average compensation of $7,616.21. Ayes: All. Motion carried unanimously. F. Retirement Information Under ERIP for Walter Mueller, Emergency Dispatch Shift Leader, Police Department Motion by Varney, supported by Marsh, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Walter Mueller, Emergency Dispatch Shift Leader, Police Department, effective March 1, 2015 with service credit of 16 years, eleven months and the monthly pension amount of $2,316.95 under option A 100% with annuity withdrawal based on a monthly final average compensation of $7,169.75. Ayes: All. Motion carried unanimously. G. Retirement Information Under ERIP for Michele Wierzbicki, Emergency Dispatcher, Police Department Motion by Henig, supported by Baker, to approve the service retirement under ERIP (Early Retirement Incentive Program) for Michele Wierzbicki, Emergency Dispatcher, Police 3  Department, effective March 1, 2015 with service credit of 13 years, seven months and the monthly pension amount of $1,850.40 under option C with annuity withdrawal based on a monthly final average compensation of $6,719.46. Ayes: All. Motion carried unanimously. III. NEW BUSINESS A. Application and Deferred Retirement Information for Deborah Mazzara Motion by Marsh, supported by Henig, to approve the deferred service retirement for Deborah Mazzara, MAPE Clerical, Fire Department, effective April 16, 2015 with service credit of 15 years, ten months and the monthly pension amount of $626.25 under straight life without annuity withdrawal based on a monthly final average compensation of $1,977.66. Ayes: All. Motion carried unanimously. B. Pension Administration Comments 8. Draft Agenda May 27, 2015 Special Meeting Motion by Marsh, supported by Henig, to approve the agenda for the May 27, 2015 special meeting as presented. Ayes: All. Motion carried unanimously. 9. Update of Disability Retiree Medical Exams and Income Verification Motion by Henig, 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 2:03 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Brian Baker, Secretary 4