General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, June 21, 2018 ___________________________________________________________________ __ _ ___ Location: Room #204 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2783 Acting Chairperson Varney called the meeting to order at 1:31 p.m. BOARD MEMBERS PRESENT: Jennifer Varney, Acting Chairperson Todd Marsh, Trustee Paul Henig, Trustee Mary Jaganjac, Treasurer BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (excused) ALSO PRESENT: Walt Hessell, Pension Administrator Ryan Clark, Treasury Service Coordinator Tom Michaud, Legal Counsel APPROVAL OF AGENDA: Motion by Marsh, supported by Jaganjac, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Marsh, to approve the minutes of the regular meeting held May 17, 2018. Ayes: All. Motion carried unanimously. Motion by Henig, supported by Marsh, to approve the minutes of the special meeting held May 23, 2018. Ayes: All. Motion carried unanimously COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Tom Michaud reviewed status of Lang litigation with the Federal Court Judge followed by brief discussion with board members. Michaud also commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Marsh, supported by Jaganjac, 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 June 1, 2018 from Comerica Bank showing 363 active retirees with a payout for May 2018 of $927,948.58 and a year-to-date of $5,530,476.00. B. Cash and Asset Statements as of May 31, 2018 from Comerica Bank and Morgan Stanley showing a total market value of $111,368,795.59 comprised as follows: 1  Desired Asset Class Percentage Manager / Fund $ Balance Allocation 2.00% LARGE CAP GROWTH 3.09% CLEARBRIDGE $ 3,446,126.57 2.00% LARGE CAP GROWTH 3.09% ISHARES GROWTH ETF $ 3,440,823.94 3.00% LARGE CAP GROWTH 2.88% JANUS CAPITAL $ 3,211,310.81 4.00% LARGE CAP VALUE 3.29% CONFLUENCE $ 3,668,379.97 3.00% LARGE CAP VALUE 2.83% ISHARES VALUE ETF $ 3,149,478.90 4.00% LARGE CAP VALUE 3.15% MFS $ 3,512,755.25 6.00% LARGE CAP CORE 4.70% JOHN HANCOCK $ 5,239,857.42 4.00% LARGE CAP CORE 4.15% ISHARES S&P 500 ETF $ 4,622,773.50 4.00% SMID CAP VALUE 4.38% EDGE $ 4,877,381.67 11.00% SMID CORE 9.89% EARNEST PARTNERS $ 11,016,334.16 11.00% LARGE CAP GLOBAL 10.77% CAMBIAR $ 11,995,696.97 6.00% LARGE CAP GLOBAL 6.93% WCM $ 7,720,681.93 6.00% LARGE CAP GLOBAL 6.21% HARDING LOEVNER $ 6,918,406.61 3.00% EMERGING 2.99% LAZARD $ 3,335,310.67 2.00% REITS 2.27% PRINCIPAL $ 2,523,908.97 12.00% FIXED INCOME 12.01% WESTERN ASSET MANAGEMENT $ 13,378,181.81 12.00% FIXED INCOME 11.76% BOYD WATTERSON $ 13,097,226.27 5.00% MLPS 5.17% CUSHING $ 5,753,616.54 0.00% CASH 0.41% CASH $ 460,543.63 100.00% 100.00% $ 111,368,795.59 C. Correspondence 1. April 27, 2018 Robbins Geller Rudman & Dowd Shareholder Class Actions Settlement Report 2. April 30, 2018 Morgan Stanley letter regarding changes to Bank Deposit Program accounts 3. May 4, 2018 Morgan Stanley letter regarding UMA account transfer from The London Company to John Hancock 4. May 4, 2018 Morgan Stanley letter regarding UMA account asset allocation elections for Confluence managed assets 5. May 4, 2018 Morgan Stanley letter regarding UMA account asset allocation elections for Clearbridge managed assets 6. May 7, 2018 Morgan Stanley letter regarding amendment to Client Agreement 7. May 8, 2018 Morgan Stanley letter regarding status change to personnel no longer acting as fiduciary, as defined under ERISA, Investment Advisors Act of 1940 8. May 11, 2018 The London Company Form ADV 9. May 14, 2018 Pension and Investments publication 10. May 15, 2018 Morgan Stanley Petrobras Proof of Claims documentation, signed and returned 11. May 18, 2018 Morgan Stanley letter regarding upcoming changes to fees and services 12. May 22, 2018 Morgan Stanley letter regarding change of phone number on record 13. May 22, 2018 Morgan Stanley letter regarding check issuance notification for Boyd Watterson management fee 14. May 22, 2018 Morgan Stanley email string regarding funds available for transfer 15. May 22, 2018 Morgan Stanley letter regarding wire transfer notification for pension disbursement funds 16. May 22, 2018 Morgan Stanley email string containing authorization for Q1 2018 Money Manager Fees 17. May 28, 2018 Pension and Investments publication 18. May 29, 2018 email string confirming Ryan Clark is not needed as a signer for Morgan Stanley administration given the dual signer process 19. June 1, 2018 Comerica notification of outstanding balance 20. June 11, 2018 Pensions & Investments publication D. Approve Invoices for Payment 1. Invoice from Graystone Consulting for Invesco pro rata quarterly fee of $4,586.83 through March 31, 2018. 2 REGULAR AGENDA: II. OLD BUSINESS: A. Annual Review of Adjustments to “Initial 70% AFC Limit” for Gross Monthly Pensions Motion by Henig, supported by Marsh, to acknowledge the increase of the “Initial 70% AFC Limit” effective July 1, 2018 and the increase of the gross monthly pensions payable August 1, 2018 as detailed in the following table: Name Revised 70% AFC Revised Gross Monthly Pension Larry D’Angelo $4,287.22 $3,662.44 Edward Piet $4,780.29 $4,780.29 James Carpenter $6,412.40 $4,880.16 Thomas Hlivka $5,393.43 $4,696.31 Footnote: Changes from last year’s annual review are summarized as follows: Tina Hotton, Mefford Couch and Theodore Boehmer all reached their maximum pension amount after last year’s increase and did not require further adjustment this year. Paul Geiger will require annual adjustments starting next year July 1, 2019. Ayes: All. Motion carried unanimously. B. Actuarial Cost Study – Sterling Heights Executive Group Motion by Henig, supported by Marsh, to receive and file the actuarial cost study pursuant to the new labor agreement pension benefit changes with regard to Sterling Heights Executive Group. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status – Thomas McDonell (Deceased) Motion by Henig, supported by Jaganjac, to approve Marilyn McDonell (survivor/retiree) to receive Option B benefits equal to 50% that of the deceased retiree Thomas McDonell in the monthly gross amount of $437.08. Ayes: All. Motion carried unanimously. B. Updated Comerica Bank Authorized Signers List Motion by Marsh, supported by Henig, to approve and sign the Updated Comerica Bank Authorized Signers List. Ayes: All. Motion carried unanimously. C. Change to Retiree Benefit Waiver of Rights – Sara Garelik Motion by Jaganjac, supported by Marsh, to approve the Waiver of Rights to receive benefit for Option A retiree survivor beneficiary Sara Garelik from August 1st 2018 to August 1st 2019. Ayes: All. Motion carried unanimously. D. Pension Administration Comments 1. Pensioner Status Update- Gerald Robertson Pensioner confirmed terminated vested with pension benefit payments to commence at the age sixty in 2019. 2. Change in Retiree Status – Jason Ruggirello (Deceased, Non-Duty) Agenda item expected on July 19th regular monthly meeting to approve Amy Ruggirello (survivor spouse) to receive Option A benefits equal a monthly gross amount currently in actuarial review. ADJOURN: Motion by Jaganjac, supported by Marsh, to adjourn the meeting at 2:34 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Jennifer Varney, Secretary 3