General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, August 20, 2015 ___________________________________________________________________ __ _ ___ Location: Room – City Directors Conference Room #202 40555 Utica Road, Sterling Heights, MI 48313 Telephone: (586) 446-2331 Chairperson Weiler called the meeting to order at 1:33 p.m. BOARD MEMBERS PRESENT: Rich Weiler, Chairperson Jennifer Varney, Acting Secretary / Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Brian Baker, Secretary (excused) ALSO PRESENT: Thomas Michaud, Legal Counsel, VanOverbeke, Michaud and Timmony, P.C. ; Walt Hessell, Pension Administrator APPROVAL OF AGENDA: Motion by Marsh, supported by Henig, to approve the agenda as amended to include payment of invoices under Consent Agenda Item I –D. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Marsh, supported by Henig, to approve the minutes of the regular meeting held July 16, 2015. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: Sanaa Elias attended the meeting and stated that she is a candidate running for City Council. REPORT FROM LEGAL COUNSEL Michaud handed out a legal memorandum summarizing the online disclosure requirements for a public retirement system under recent amendments to state law. Discussion followed and the Board concluded that the system is compliant with regard to the posting of required Board actions. Hessell noted that the minutes and agendas of the Board meetings are also posted to the City website which falls under the recommended Board action disclosures category. Motion by Marsh, supported by Henig, to receive and file the online disclosure requirements memorandum checklist as prepared by legal counsel. Ayes: All. Motion carried unanimously. 1 CONSENT AGENDA: Motion by Marsh, supported by Henig, to receive and file consent items I A through I D as amended. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for August 1, 2015 from Comerica Bank showing 357 active retirees with a payout for July 2015 of $873,989.29 and a year-to-date payout of $7,409,194.57. B. Cash and Asset Statements as of July 31, 2015 from Comerica Bank and Morgan Stanley showing a total market value of $115,064,690.87 comprised as follows: Desired Market Value Allocation Asset Class / Percentage 0% Cash 0.06% Comerica Bank $ 62,602.08 16% Fixed Income 15.77% Boyd Watterson 18,141,513.17 8% Fixed Income 7.93% WAMCO 9,121,800.11 15% Small Cap 16.49% Earnest Partners 18,977,070.64 6.8% Large Cap Value 6.65% Herndon Capital 7,647,341.08 6.8% Large Cap Value 6.94% MFS 7,989,340.08 5% Large Cap Growth 5.12% AMI 5,896,827.84 5% Large Cap Growth 5.34% Winslow 6,148,125.74 3.40% Large Cap Growth 3.60% Janus Capital 4,142,302.44 8% Large Cap Core 8.46% London 9,730,649.04 5% Large Cap Core 5.16% S&P Index 5,942,409.12 8.5% Large Cap Global 8.21% INVESCO 9,441,110.74 8.5% Large Cap Global 8.14% Causeway 9,370,258.05 4% REITS 2.13% Principal REIT 2,453,340.74 C. Correspondence 1. Class Action Settlement Report dated June 26, 2015. 2. Email correspondence and letter dated July 20, 2015 sent to Morgan Stanley regarding the change in money manager positions. 3. Email correspondence and letter dated July 16, 2015 sent to Morgan Stanley regarding the transfer of funds for the payment of benefits. 4. Email correspondence and letter dated July 17, 2015 sent to Morgan Stanley regarding the authorization to pay money manager fees. 5. Confirmation dated July 23, 2015 received from Morgan Stanley for the transfer of funds for the payment of benefits. 6. Advisory Program Confirmation dated July 23, 2015 received from Morgan Stanley. 7. Fee Information summary dated July 24, 2015 received from Morgan Stanley. 8. Confirmation of check issuance dated July 28, 2015 received from Morgan Stanley regarding payment of money manager fees. 9. “The Advocate” magazine- Summer 2015. 10. “Pension & Investments” magazines dated July 27 & August 10, 2015. D. Approve Invoices for Payment 1. Payable from City Assets for the August 13, 2015 invoice date: 2  GASB Statement No 67 & 68 valuation report fees from Gabriel Roeder Smith & Company in the amount of $8,000.00 and Annual Actuarial Valuation report fees from Gabriel Roeder Smith & Company in the amount of $14,000. 2. Payable from City Assets for the August 13, 2015 Invoice Date Actuarial EDRO calculation fees from Gabriel Roeder Smith & Company in the amount of $1,300.00 (reimbursed by participant and alternate payee – Hardin July 30, 2015 report). REGULAR AGENDA: II. OLD BUSINESS A. Retirement Information for Salvatore Conigliaro, Director of Public Works Motion by Varney, supported by Henig, to approve the service retirement for Salvatore Conigliaro, Director of Public Works, effective July 3, 2015 with service credit of 23 years, eight months and the monthly pension amount of $6,303.56 under Option A with Annuity Withdrawal based on a monthly final average compensation of $13,459.26 (subject to Internal Revenue Code (IRC) Section 415(b)(1)(A) annual 2015 pension limitation for a public general employee retiree). Ayes: All. Motion carried unanimously. B. Retirement Information for Thomas Dupre, Equipment Operator B, Department of Public Works Motion by Henig, supported by Marsh, to approve the service retirement for Thomas Dupre, Equipment Operator B, Department of Public Works, effective June 27, 2015 with service credit of 14 years and the monthly pension amount of $1,532.81 under Option A 100% Pop-Up with Annuity Withdrawal based on a monthly final average compensation of $6,444.08. Ayes: All. Motion carried unanimously. C. Retirement Information for Richard Hardin (subject to EDRO), Water Division Supervisor, Department of Public Works Motion by Marsh, supported by Henig, to approve the service retirement for Richard Hardin (subject to EDRO), Water Division Supervisor , Department of Public Works, effective June 27, 2015 with service credit of 28 years, ten months and the monthly pension (participant) amount of $6,055.03 under Straight Life with Annuity Withdrawal, based on a monthly final average compensation of $11,864.70. Ayes: All. Motion carried unanimously. D. EDRO Alternate Payee Benefit Information for Lora Lynn Hardin (Richard Hardin, Department of Public Works) 3  Motion by Marsh, supported by Henig, to approve the alternate payee retirement benefit for Lora Lynn Hardin, (Richard Hardin EDRO), coinciding benefit effective June 27, 2015 with the monthly pension amount of $1,137.81 under EDRO Option B 50% without Annuity Withdrawal based on the Actuary’s EDRO calculation. Ayes: All. Motion carried unanimously. E. IRS Section 415 Benefit Limitation 2015 Calendar Year Applied Motion by Henig, supported by Varney, to instruct custodian bank Comerica to freeze benefits from the plan in accordance with the 2015 payment schedule for the QEBA participants as specified in Section Two of the Qualified Excess Benefit Arrangement Trust document. Ayes: All. Motion carried unanimously. F. Request City Clerk to Conduct an Election of Trustees to a Three-Year Term Due to the expiration of Paul Henig’s Term on October 15, 2015 (three year term) Motion by Marsh, supported by Henig, to adopt a resolution which provides for the conducting of an election by the City Clerk and the acceptance of candidates who are active members of the GERS and who may live outside the City limits but within 20 miles of the City boundaries as required by State Law, due to the expiration of Paul Henig’s Term on October 15, 2015 (three year term) Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status – Brian Oglesby (Deceased) Motion by Marsh, supported by Varney, to approve the termination of Option C benefits for retiree, Brian Oglesby, due to his death on July 4, 2015 and the expiration of the ten year certain period. Ayes: All. Motion carried unanimously. B. Refund of Employee Contributions & Interest – Michele Lubeckyj, Emergency Dispatch Motion by Varney, supported by Henig, to approve the withdrawal and payment of employee contributions and interest in the amount of $31,685.42 to Michele Lubeckyj, Emergency Dispatch who separated from service on February 28, 2015. Ayes: All. Motion carried unanimously. C. Pension Administration Comments – Hessell stated that the funding valuation and the GASB 67 & 68 reports have been completed by the GRS Actuary firm and the presentation of the reports will be made at the September 17th regular Board meeting. D. Trustee Comments – None . ADJOURN: Motion by Varney, supported by Weiler, to adjourn the meeting at 2:09 p.m. 4 Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer 5