General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, November 19, 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 1:36 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: 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 Marsh, supported by Henig, to approve the minutes of the regular meeting held October 15, 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 Varney, supported by Marsh, to receive and file consent items I A through I D-2. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: 1  A. Benefit register listing for November 1, 2015 from Comerica Bank showing 359 active retirees with a payout for October 2015 of $876,230.09 and a year-to-date payout of $10,492,036.31. B. Cash and Asset Statements as of October 31, 2015 from Comerica Bank and Morgan Stanley showing a total market value of $110,636,167.18 comprised as follows: Desired Allocation Asset Class / Percentage 0% Cash 0.04% Comerica Bank $ 40,838.93 16% Fixed Income 16.28% Boyd Watterson 18,015,694.10 8% Fixed Income 8.31% WAMCO 9,187,637.23 15% Small Cap 16.73% Earnest Partners 18,511,104.17 6.8% Large Cap Value 6.73% Herndon Capital 7,449,498.92 6.8% Large Cap Value 7.12% MFS 7,881,740.70 5% Large Cap Growth 4.89% AMI 5,415,312.61 5% Large Cap Growth 4.59% Winslow 5,074,404.64 3.4% Large Cap Growth 3.49% Janus Capital 3,863,372.57 8% Large Cap Core 8.47% London 9,372,414.43 5% Large Cap Core 5.15% S&P Index 5,693,894.85 8.5% Large Cap Global 8.08% INVESCO 8,941,000.26 8.5% Large Cap Global 8.10% Cambiar 8,959,540.38 4% REITS 2.02% Principal REIT 2,229,713.39 C. Correspondence 1. Notice of Pendency of Class Action Integrys Energy Group, Inc. –September 8, 2015. 2. September 25, 2015 Settlement Report – securities litigation. 3. Email correspondence and letters sent to Morgan Stanley and Comerica Bank dated October 15, 2015 regarding the transfer of funds for the payment of benefits. 4. Email correspondence and letter sent to Morgan Stanley dated October 15, 2015 regarding the payment of money manager fees. 5. Wire transfer notification received from Morgan Stanley dated October 20, 2015 regarding the payment of money manager fees. 6. Wire transfer notification received from Morgan Stanley dated October 23, 2015 regarding the transfer of funds for the payment of benefits. 7. “Pension & Investments” magazines dated October 19 and November 2, 2015. D. 1. Payable from System Assets for the quarter ending September 30, 2015: Quarterly management fees from Morgan Stanley in the amount of $153,775.35. 2. Payable from City Assets for the third quarter ending September 30, 2015: Quarterly custodian banking fees from Comerica Bank in the amount of $4,901.71 MAPERS 2016 Membership Invoice / Renewal in the amount of $100.00 . REGULAR AGENDA: II. NEW BUSINESS: 2 A. Change in Retiree Status – Linda Landerschier (Deceased) Motion by Varney, supported by Marsh, to approve the termination of straight life benefits for retiree, Linda Landerschier, due to her death on October 7, 2015. Ayes: All. Motion carried unanimously. B. Processing of Pop-Up Election for Florence Stieber Motion by Varney, supported by Marsh, to approve the processing of the pop-up election for retiree, Florence Stieber, effective October 4, 2015 (spouse/beneficiary date of death) with a revised monthly benefit of $849.60. Ayes: All. Motion carried unanimously. C. Pension Administration Comments – Suspension of Benefits Hessell stated that the last retiree / beneficiary verification was confirmed earlier in the day and that 100% compliance was now achieved as the second follow up mailing was sent in mid- October. No suspension of pension benefits will be required for the 2015 annual verification. D. Trustee Comments – None. ADJOURN: Motion by Marsh, supported by Weiler, to adjourn the meeting at 1:47 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer 3