General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, February 15, 2018 ___________________________________________________________________ __ _ ___ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Chairperson Varney called the meeting to order at 1:34 p.m. BOARD MEMBERS PRESENT: Jennifer Varney, Acting Chairperson Mary Jaganjac, Treasurer / Acting Secretary Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (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 Jaganjac, supported by Marsh, to approve the minutes of the regular meeting held January 18, 2018. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud informed the Board that the Lang litigation matter which was scheduled to have its first hearing in Federal Court on March 29, 2018 has now been extended out another 30 to 60 days. Lang’s legal counsel has requested an extension as they apparently intend on responding to the motion to dismiss. Michaud also commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Jaganjac, supported by Henig, 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 February 1, 2018 from Comerica Bank showing 362 active retirees with a payout for January 2018 of $916,328.18 and a year-to-date payout of $1,830,672.70 B. Cash and Asset Statements as of January 31, 2018 from Comerica Bank and Morgan Stanley showing a total market value of $118,160,270.85 comprised as follows: Desired Allocation Asset Class / Percentage 0% Cash 0.09% Comerica Bank $ 115,712.00 12% Fixed Income 11.20% Boyd Watterson 13,234,449.72 12% Fixed Income 11.50% WAMCO 13,591,401.10 11% Small Cap 13.92% Earnest Partners 16,451,412.65 4% Large Cap Value 3.85% Confluence 4,548,789.63 4% Large Cap Value 3.81% MFS 4,500,634.40 3% Large Cap Value 3.01% iShares Val Index 3,551,438.88 4% Large Cap Growth 2.06% AMI 2,434,594.28 2% Large Cap Growth 2.14% Winslow 2,523,109.41 3% Large Cap Growth 2.86% Janus Capital 3,384,310.99 2% Large Cap Growth 2.51% iShares Gr Index 2,963,190.88 6% Large Cap Core 5.34% London 6,308,278.94 4% Large Cap Core 4.14% iShares S&P Index 4,887,948.30 6% Large Cap Global 6.24% INVESCO 7,372,806.00 11% Large Cap Global 11.00% Cambiar 12,995,550.43 6% Large Cap Global 6.20% Harding 7,329,774.64 3% Emerging Markets 2.99% Lazard / HLMEX 3,527,543.14 2% REITS 2.13% Principal REIT 2,520,200.46 5% MLP’s 5.01% Cushing Asset Mgt 5,919,125.00 C. Correspondence 1. December 28, 2017 Settlement Report – Robbins Geller Rudman & Dowd. 2. Email correspondence and letter sent to Morgan Stanley dated January 16, 2018 regarding the transfer of funds for the payment of benefits. 3. Email correspondence sent to City Controller dated January 16, 2018 regarding electronic filing of Form 5572 to State of Michigan as required under Public Act 202. 4. Email correspondence with Comerica Bank dated January 19, 2018 regarding execution of STIF agreement. 5. Fee information for Morgan Stanley Qualified Retirement Plans dated January 19, 2018. 6. Wire transfer confirmations received form Morgan Stanley dated January 22, 2018. 7. Email correspondence with Comerica Bank dated January 24, 2018 regarding Form W-9 FATCA Compliant for Credit Suisse Bulk Settlement Practice Fair Fund Class Action. 8. “Pension & Investments” magazines dated January 8 & 22, February 5, 2018. D. Approve Invoices for Payment 2  1. Payable from Systems Assets for the service period ending December 31, 2017. Quarterly management fees from Morgan Stanley in the amount of $167,943.84 and from Boyd Watterson in the amount of $5,005.00. 2. Payable from City Assets for the service period ending December 31, 2017 Bank custodian fees from Comerica Bank in the amount of $4,870.12 and actuarial EDRO calculation fees from Gabriel Roeder Smith & Co. in the amount of $1,100.00 (reimbursed by participant). REGULAR AGENDA: II. OLD BUSINESS: A. Retirement Information for Paul Geiger (subject to EDRO), Code Enforcement Coordinator, Office of City Development Motion by Henig, supported by Jaganjac, to approve the service retirement for Paul Geiger (subject to EDRO), Code Enforcement Coordinator, Office of City Development, effective January 4, 2018 with service credit of 32 years, six months and the monthly pension (participant) amount of $4,638.27 which is limited to 70% of FAC under Straight Life without annuity withdrawal based on a monthly final average compensation of $7,746.02. Ayes: All. Motion carried unanimously. Motion by Henig, supported by Jaganjac, to approve the revised (recoupment) alternate payee retirement benefit for Kimberly Ann Geiger, coinciding benefit effective January 4, 2018 with the monthly pension amount of $546.03 under EDRO straight life option without annuity withdrawal based upon actuaries’ calculation. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A Application for Service Retirement, Denise Doyle, Deputy Court Clerk, 41-A District Court Motion by Henig, supported by Marsh to receive and file the application for service retirement for Denise Doyle, Deputy Court Clerk, 41-A District Court. Ayes: All. Motion carried unanimously. B. Change in Retiree Status – Ellen Lasky (Deceased) Motion by Jaganjac, supported by Henig, to approve Alan Lasky (survivor / retiree) to receive Option B benefits equal to 50% that of the deceased retiree Ellen Lasky in the monthly gross amount of $1,329.58. Ayes: All. Motion carried unanimously. C. Pension Administrator Comments – Hessell stated that the pending non-duty disability retirement process for David Reid has been progressing as an appointment has now been 3  scheduled with MES Solutions (medical evaluation services). D. Trustee Comments – None. ADJOURN: Motion by Marsh supported by Jaganjac, to adjourn the meeting at 1:46 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Mary Jaganjac, Treasurer / Acting Secretary 4