General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, March 15, 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 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 Varney, supported by Henig, to approve the agenda as amended to include the minutes of the special meeting held March 7, 2018 for approval. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Varney, to approve the minutes of the regular meeting held January 18, 2018 and the special meeting held March 7, 2018. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud briefly discussed the recent United States Supreme Court opinion as it related to retiree health insurance benefits. The ruling was especially meaningful as it applied to the United States District Court for the Eastern District of Michigan and to the United States Court of Appeals for the Sixth Circuit. The opinion will be useful in settling cases involving Michigan municipalities. Michaud also commented on items as they appeared on the agenda. CONSENT AGENDA: 1 Motion by Marsh, supported by Weiler, to receive and file consent items I A through I C-9. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit register listing for March 1, 2018 from Comerica Bank showing 363 active retirees with a payout for February 2018 of $921,947.15 and a year-to-date payout of $2,752,619.85. B. Cash and Asset Statements as of February 28, 2018 from Comerica Bank and Morgan Stanley showing a total market value of $112,878,372.05 comprised as follows: Desired Allocation Asset Class / Percentage 0% Cash 0.27% Comerica Bank $ 300,365.42 12% Fixed Income 11.58% Boyd Watterson 13,069,471.28 12% Fixed Income 11.86% WAMCO 13,390,046.71 11% Small Cap 14.02% Earnest Partners 15,828,482.13 4% Large Cap Value 3.51% Confluence 3,963,858.11 4% Large Cap Value 3.54% MFS 3,993,101.91 3% Large Cap Value 2.83% iShares Val Index 3,195,010.40 4% Large Cap Growth 2.05% AMI 2,316,624.13 2% Large Cap Growth 2.19% Winslow 2,474,728.08 3% Large Cap Growth 2.94% Janus Capital 3,324,111.23 2% Large Cap Growth 2.56% iShares Gr Index 2,886,045.88 6% Large Cap Core 5.33% London 6,020,411.76 4% Large Cap Core 4.17% iShares S&P Index 4,701,994.68 6% Large Cap Global 6.21% INVESCO 7,005,703.13 11% Large Cap Global 10.93% Cambiar 12,335,754.37 6% Large Cap Global 6.20% Harding 7,002,730.40 3% Emerging Markets 3.02% Lazard / HLMEX 3,404,699.91 2% REITS 2.09% Principal REIT 2,361,417.43 5% MLP’s 4.70% Cushing Asset Mgt 5,303,815.09 C. Correspondence 1. January 26 and February 23, 2018 Settlement Reports – Robbins Geller Rudman & Dowd. 2. Client Agreement update from Morgan Stanley dated February 2, 2018. 3. Email correspondence and letter sent to Morgan Stanley dated February 15, 2018 regarding the transfer of funds for the payment of benefits. 4. Email correspondence and authorization letter sent to Morgan Stanley dated February 15, 2018 regarding the payment of money manager fees. 5. Confirmation of Account Information from Morgan Stanley dated February 21, 2018. 6. Wire transfer confirmations received form Morgan Stanley dated February 16, 2018. 7. Email correspondence and letter with Comerica Bank dated February 27, 2018 regarding deposit of Cliff securities litigation settlement check in the amount of $1,996.72. 8. Letter and memo received from Aaron Castle, VanOverbeke, Michaud & Timmony, P.C. dated March 5, 2018 regarding U.S. Supreme Court Case Update – vested health care benefits for life. 9. “Pension & Investments” magazines dated February 19 and March 5, 2018. 2 REGULAR AGENDA: II. OLD BUSINESS: A. Non-Duty Disability Retirement Information for David Reid, Facilities Maintenance Mechanic, Office of Building Services Motion by Marsh, supported by Henig, to approve the non-duty disability retirement for David Reid, Facilities Maintenance Mechanic, Office of Building Services, effective December 21, 2017 with service credit of 14 years, seven months and the monthly pension amount of $1,442.77 under Option A without annuity withdrawal based on a monthly final average compensation of $5,079.18. Ayes: All. Motion carried unanimously. Motion by Henig, supported by Varney, to approve Sylvia Reid (survivor/retiree) to receive Option A benefits equal to 100% that of the deceased nod-duty disability retiree David Reid in the monthly gross amount of $1,442.77. Ayes: All. Motion carried unanimously. B. Processing of Pop-Up Election for Rosemary Lane Motion by Marsh, supported by Henig, to approve the processing of the pop-up election for retiree Rosemary Lane, effective February 15, 2018 (spouse/beneficiary date of death) with a revised monthly benefit of $1,169.33. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Pension Administrator Comments – None. B. Trustee Comments – The MAPERS 2018 Spring Conference was discussed. Due to a number of schedule conflicts none of the Board members will be attending the seminar. 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 3