General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, December 17, 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 1:30 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 Varney, to approve the minutes of the regular meeting held November 19, 2015 and the special meeting held December 2, 2015. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL – GRIEVANCE SETTLEMENT (CONFIDENTIAL) Michaud requested that the Board recess to closed session to discuss the grievance settlement. Motion by Henig, supported by Marsh, to recess to closed session for the purposes of discussing the grievance settlement. Roll call vote: Weiler: Aye Varney: Aye Marsh: Aye Henig: Aye 1 Board recessed to closed session. Separate minutes of the closed session were compiled. Board reconvened from closed session. Motion by Henig, supported by Marsh to receive and file the grievance settlement and to authorize the Pension Administrator to update the pension data base for the inclusion of the new member. Ayes: All. Motion carried unanimously. Michaud also 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 December 1, 2015 from Comerica Bank showing 359 active retirees with a payout for November 2015 of $871,628.49 and a year-to-date payout of $11,363,664.80. B. Cash and Asset Statements as of November 30, 2015 from Comerica Bank and Morgan Stanley showing a total market value of $111,175,546.92 comprised as follows: Desired Allocation Asset Class / Percentage 0% Cash 0.82% Comerica Bank $ 915,615.65 16% Fixed Income 16.31% Boyd Watterson 18,133,169.75 8% Fixed Income 8.24% WAMCO 9,156,327.22 15% Small Cap 16.79% Earnest Partners 18,663,048.25 6.8% Large Cap Value 6.81% Herndon Capital 7,569,234.90 6.8% Large Cap Value 7.07% MFS 7,864,541.84 5% Large Cap Growth 4.86% AMI 5,402,151.79 5% Large Cap Growth 4.57% Winslow 5,082,459.35 3.4% Large Cap Growth 3.50% Janus Capital 3,892,508.13 8% Large Cap Core 8.09% London 8,993,029.11 5% Large Cap Core 4.89% S&P Index 5,441,929.10 8.5% Large Cap Global 8.01% INVESCO 8,902,598.69 8.5% Large Cap Global 8.05% Cambiar 8,945,709.91 4% REITS 1.99% Principal REIT 2,213,223.03 C. Correspondence 1. Various securities litigation reports dated Q3 2015. 2. October 30, 2015 Settlement Report – Securities Litigation. 3. Email correspondence and letter sent to Morgan Stanley and Comerica Bank dated November 19, 2015 regarding the transfer of funds for the payment of benefits. 4. Email correspondence and letter sent to Morgan Stanley dated November 19, 2015 regarding the authorization for the payment of money manager fees. 2  5. Fee information summary received from Morgan Stanley dated November 20, 2015. 6. Wire transfer notification received from Morgan Stanley dated November 24, 2015 confirming the transfer of funds for the payment of benefits. 7. “The Advocate for Institutional Investors” magazine dated Fall 2015. 8. “Pension & Investments” magazines dated November 16 & 30 and 2015. D. 1. Payable from City Assets for services rendered December 8, 2015: Actuarial fees from Gabriel Roeder Smith & Company in the amount of $2,850 for the IRS Section 415 Limit Recalculations for 2016 for Baker, Guitar and Conigliaro. . REGULAR AGENDA: II. NEW BUSINESS: A. Change in Retiree Status – Charles Heine (Deceased) Motion by Marsh, supported by Varney, to approve the termination of straight life benefits for retiree, Charles Heine, due to his death on November 26, 2015. Ayes: All. Motion carried unanimously. B. Application for Service Retirement, William Coffin (subject to EDRO), General Supervisor, Department of Public Works Motion by Marsh, supported by Henig, to receive and file the application for service retirement, William Coffin (subject to EDRO), General Supervisor, Department of Public Works. Ayes: All. Motion carried unanimously. C. Pension Administration Comments – None D. Trustee Comments – None. ADJOURN: Motion by Henig, supported by Weiler, to adjourn the meeting at 1:50 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Acting Secretary / Treasurer 3