General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday June 20, 2019 Location: Room #202 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2783 Chairperson Weiler called the meeting to order at 1:31 p.m. BOARD MEMBERS PRESENT: Richard Weiler, Chairperson Paul Henig, Trustee Mary Jaganjac, Treasurer BOARD MEMBERS ABSENT: Jennifer Varney, Secretary Todd Marsh, Trustee ALSO PRESENT: Tom Michaud, Legal Counsel Tim Brice, Morgan Stanley, The Brice Group Ryan Clark, Treasury Service Coordinator APPROVAL OF AGENDA Motion by Henig, supported by Marsh, to approve the agenda as presented. Ayes: All. Motion carried unanimously APPROVAL OF MINUTES Motion by Henig, supported by Jaganjac, to approve the minutes of the following: - Regular Meeting of May 16, 2019 - Special Meeting of May 30, 2019 - Special Meeting of June 5, 2019 Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL Michaud reported out on the following items: 1) Michigan Case Update: Kendzierski v Macomb County 2) Negotiations with GRS on-going over liability coverage on service contracts 3) Anheuser-Busch InBev class action. P:\Ryan\PENSION\GERS MEETING FILES\Minutes\2019 Fiscal\19.6.20 1 unapproved minutes.docx  Motion by Henig, supported by Weiler, to enter closed session Motion by Henig, supported by Jaganjac, to re-enter open session Motion by Henig, supported by Weiler, to pursue class action against Anheuser-Busch InBev 4) Depositions for Lang case continue CONSENT AGENDA - Consent Items I.A through I.C15 Motion by Jaganjac, supported by Henig, to approve consent agenda items I.A through I.C15 Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: A. Benefit Register Listing for June 1, 2019 from Comerica Bank showing 363 active retirees with a payout for the benefit month of $ $931,972 and a year-to-date of $5,595,148. B. Cash and Asset Statements as of May 31, 2019 from Comerica Bank and Morgan Stanley showing a total market value of $ $103,871,394 comprised as follows: Desired Percentage Asset Class Manager / Fund $ Balance Allocation 2.00% 2.67% LARGE CAP GROWTH CLEARBRIDGE $ 2,776,879.52 2.00% 2.96% LARGE CAP GROWTH ISHARES RUSSELL 1000 GROWTH ETF $ 3,077,817.60 3.00% 2.53% LARGE CAP GROWTH JANUS CAPITAL $ 2,623,869.60 4.00% 3.96% LARGE CAP VALUE CONFLUENCE $ 4,117,076.80 3.00% 3.53% LARGE CAP VALUE ISHARES RUSSELL 1000 VALUE ETF $ 3,666,853.19 4.00% 3.74% LARGE CAP VALUE MFS $ 3,886,102.59 6.00% 4.45% LARGE CAP CORE JOHN HANCOCK $ 4,623,356.86 4.00% 4.17% LARGE CAP CORE ISHARES S&P 500 ETF $ 4,331,426.00 4.00% 4.05% SMID CAP VALUE EDGE $ 4,208,353.16 11.00% 7.20% SMID CORE EARNEST PARTNERS $ 7,483,849.80 11.00% 9.68% INTERNATIONAL CAMBIAR $ 10,054,706.22 6.00% 7.80% INTERNATIONAL WCM $ 8,106,901.92 6.00% 5.86% INTERNATIONAL HARDING LOEVNER $ 6,085,408.59 1.50% 1.92% EMERGING HARDING LOEVNER HLEMX $ 1,994,564.38 1.50% 1.20% EMERGING LAZARD $ 1,242,498.98 2.00% 2.76% REITS PRINCIPAL $ 2,863,313.84 12.00% 12.28% FIXED INCOME WESTERN ASSET MANAGEMENT $ 12,752,438.42 12.00% 12.25% FIXED INCOME BOYD WATTERSON $ 12,719,432.89 5.00% 5.02% MLPS CUSHING $ 5,209,753.76 0.00% 1.97% CASH CASH $ 2,046,790.08 100.00% 100.00% $ 103,871,394 C. Communication items listed below: P:\Ryan\PENSION\GERS MEETING FILES\Minutes\2019 Fiscal\19.6.20 2 unapproved minutes.docx  Item Date Communication 1 May 30, 2019 Confirmation | Boyd Watterson Mgmt Fees 2 Jun 01, 2019 Consolidated trade confirmation 3 May 23, 2019 Retirement Plan Fee Changes 4 May 30, 2019 Confirmation | WCM Investment Management 5 May 23, 2019 Retirement Plan Fee Changes 6 May 29, 2019 Confirmation | Wire Transfer 7 8 Apr 30, 2019 Form ADV Part 2 Report WCM Investment Management 9 Jun 01, 2019 Real Estate Investment Today 10 Feb 28, 2019 Morgan Stanley Insitutional Liquidity Funds Prospectus 11 May 09, 2019 Form ADV Part 2 Report Earnest Partners 12 Feb 28, 2019 Invesco SemiAnnual Report 13 May 16, 2019 To Morgan Stanley: transfer request 14 May 13, 2019 Pension & Investments publication 15 Apr 24, 2019 Form ADV Part 2 Report Principal REGULAR AGENDA II. OLD BUSINESS A. Annual Review of Adjustments to “Initial 70% AFC Limit” for Gross MonthlyPensions Motion by Henig, supported by Jaganjac, to acknowledge the increase of the “Initial 70% AFC Limit” effective July 1, 2019 and the increase of the gross monthly pensions payable August 1, 2019 as detailed in the following table: Name FAC Pension Limit 7/1/2019 Larry D'Angelo $5,547.24 $4,141.77 $3,735.69 Edward Piet $6,063.95 $4,834.99 $4,834.99 James Carpenter $7,665.15 $5,281.02 $4,977.76 Paul Gieger $7,746.02 $4,878.39 $4,731.04 Footnote: Changes from last year’s annual review are summarized as follows: Thomas Hlivka reached his maximum pension amount after last year’s increase and did not require further adjustment this year. Boardmember Henig noted James Carpenter’s alternate payee, Debra Carpenter, should be the name used going forward on the FAC adjustment Ayes: All. Motion carried unanimously. P:\Ryan\PENSION\GERS MEETING FILES\Minutes\2019 Fiscal\19.6.20 3 unapproved minutes.docx  B. One-Time $500 Payment for Sterling Heights Police Clerical Association Retirees Motion by Henig, supported by Jaganjac, to receive and file the summary update for the one-time $500 payment for Sterling Heights Police Clerical Association Retirees showing payment due for the August 1, 2019 payout date to Debra Taylor. Ayes: All. Motion carried unanimously. III. NEW BUSINESS A. Deferred Retiree Benefits – Gerald Robertson Motion by Henig, supported by Weiler, to approve election of Option 50% without Annuity Withdraw deferred retiree benefits for Gerald Robertson effective March 2, 2019 with a monthly benefit in the amount of $1,523.39 including a one-time retro payment in the amount of $4,521.03. Board member request to send a copy of the annuity withdraw option for alternate payee crossed-off on the deferred retiree benefit election form. Ayes: All. Motion carried unanimously. B. Pension Administration Comments Motion by Henig, supported by Jaganjac, to table pension administrator comments for review next meeting. Ayes: All. Motion carried unanimously. 1. Review of Proposed 2018/2019 GERS Meeting Schedule 2. Annual Update & Review of RFP Status – Service Providers C. Trustee Comments ADJOURN Motion by Jaganjac, supported by Henig, to adjourn meeting. Ayes: All. Motion carried unanimously. P:\Ryan\PENSION\GERS MEETING FILES\Minutes\2019 Fiscal\19.6.20 4 unapproved minutes.docx