General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, January 18, 2018 ___________________________________________________________________ __ _ ___ Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Weiler called the meeting to order at 1:31 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson (via teleconference) Jennifer Varney, Secretary Mary Jaganjac, Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: None. 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 amended to include New Business - Item III. C -1. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Varney, to approve the minutes of the regular meeting held December 21, 2017 and the closed meeting (confidential) of December 21, 2017. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud informed the Board that the Lang litigation matter would have its first hearing in Federal Court on March 29th, 2018. Michaud explained to the Board about the Public Act 202 filing requirement and filing deadline of January 31, 2018. Hessell stated that the required Form 5572 had been fully completed for all City systems and would be electronically filed by January 31, 2018. Discussion ensued with regard to the additional review to be conducted by the actuarial firms and Varney noted that there was an eight year window to meet the mandate. Michaud also commented on items as they appeared on the agenda. CONSENT AGENDA: 1 Motion by Varney, supported by Marsh, 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 January 1, 2018 from Comerica Bank showing 362 active retirees with a payout for December 2017 of $914,344.59 and a year-to-date payout of $914,344.59. B. Cash and Asset Statements as of December 31, 2017 from Comerica Bank and Morgan Stanley showing a total market value of $114,557,975.86 comprised as follows: Desired Allocation Asset Class / Percentage 0% Cash 0.04% Comerica Bank $ 53,318.20 12% Fixed Income 11.65% Boyd Watterson 13,345,752.64 12% Fixed Income 11.95% WAMCO 13,691,962.46 11% Small Cap 14.37% Earnest Partners 16,457,549.53 4% Large Cap Value 3.78% Confluence 4,328,512.53 4% Large Cap Value 3.74% MFS 4,284,106.14 3% Large Cap Value 2.99% iShares Val Index 3,422,085.48 4% Large Cap Growth 2.01% AMI 2,299,430.00 2% Large Cap Growth 2.00% Winslow 2,290,239.39 3% Large Cap Growth 2.71% Janus Capital 3,107,071.88 2% Large Cap Growth 2.42% iShares Gr Index 2,770,636.96 6% Large Cap Core 5.29% London 6,059,249.70 4% Large Cap Core 4.04% iShares S&P Index 4,624,757.70 6% Large Cap Global 6.14% INVESCO 7,033,614.24 11% Large Cap Global 10.74% Cambiar 12,298,995.75 6% Large Cap Global 6.04% Harding 6,923,933.29 3% Emerging Markets 2.86% Lazard / HLMEX 3,282,767.57 2% REITS 2.25% Principal REIT 2,580,536.95 5% MLP’s 4.98% Cushing Asset Mgt 5,703,455.45 C. Correspondence 1. Email correspondence and letter sent to Morgan Stanley dated December 19, 2017 regarding the transfer of funds for the payment of benefits. 2. Wire transfer confirmations received form Morgan Stanley dated December 19, 2017. 3. Email correspondence and letter sent to Morgan Stanley dated December, 2017 regarding implementation of the next phase of passive index strategy and international equity., 4. Confirmation of account change dated December 21, 2017 for the passive index strategy – large cap core received from Morgan Stanley. 5. Confirmation of account change dated December 21, 2017 for the passive index strategy – large cap growth received from Morgan Stanley. 6. Confirmation of account information dated December 29, 2017 received from Morgan Stanley. 7. “Pension & Investments” magazines dated December 25, 2017 and January 8, 2018. D. Approve Invoices for Payment 2  1. Payable from City Assets for the service period ending December 31, 2017. Benefit calculation fees from Gabriel Roeder Smith & Co. in the amount of $1,600.00. REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Jennifer Mailloux, Management Assistant, Office of City Clerk Motion by Varney, supported by Marsh, to approve the service retirement for Jennifer Mailloux, Management Assistant, Office of City Clerk, effective December 1, 2017 with service credit of 19 years, one month and the monthly pension amount of $2,023.53 under option B pop-up without annuity withdrawal based on a monthly final average compensation of $5,022.98. Ayes: All. Motion carried unanimously. B. Retirement Information for Karen Kazmer, Community Relations Specialist, Office of Community Relations Motion by Varney, supported by Marsh, to approve the service retirement for Karen Kazmer, Community Relations Specialist, Office of Community Relations, effective December 23, 2017 with service credit of 17 years, three months and the monthly pension amount of $1,893.89 under straight life with annuity withdrawal based on a monthly final average compensation of $5,626.07. Ayes: All. Motion carried unanimously. C. Approval of Payment Schedule for QEBA Participants Motion by Marsh, supported by Henig, to receive and adopt the 2018 payment schedule for the QEBA participants as specified in Section Two of the Qualified Excess Benefit Arrangement Trust document. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A Application for Service Retirement, Karen Pietryka, Accountant, Office of the Treasury Motion by Jaganjac, supported by Marsh to receive and file the application for service retirement for Karen Pietryka, Accountant, Office of the Treasury Ayes: All. Motion carried unanimously. B. Cash Sweep Fee Adjustment – Comerica STIF Motion by Varney, supported by Marsh, to approve and sign the updated cash sweep fee adjustment – Comerica STIF and custodial services fee schedule for Comerica Bank. Ayes: All. Motion carried unanimously. 3 C. Pension Administrator Comments 1. Proposed March 7, 2018 Special Meeting Agenda Motion by Henig, supported by Marsh, to approve the Agenda for the March 7, 2018 special meeting as presented. Ayes: All. Motion carried unanimously. D. Trustee Comments – None. ADJOURN: Motion by Varney, supported by Weiler, to adjourn the meeting at 1:50 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Secretary 4