Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 APRIL 19, 2012 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48313 Secretary Wellhausen requested a moment of silence in honor of retired Fire Captain Jerry Dameron who passed away on April 17, 2012. 1. The regular meeting of the Police and Fire Retirement System was called to order by President Solak at 4:03 p.m. 2. Board Members present: Solak, Wellhausen, Padovini, Varney. Absent: Nash (excused). Also present: Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Padovini, supported by Wellhausen, to approve the consent agenda as presented. Ayes: Padovini, Wellhausen, Solak, Varney. Absent: Nash. The motion carried. The following items were added to the regular agenda: 10 a 24 Alan Byrd – partial DROP distribution - discussion 25 Jerry Dameron – survivor benefit – discussion 26 James Little – buyback - discussion 3. APPROVAL OF REGULAR AGENDA – cont. Motion by Varney, supported by Padovini, to approve the regular agenda as amended. Ayes: Varney, Padovini, Solak, Wellhausen. Absent: Nash. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of March 15, 2012. Motion by Solak, supported by Varney, to approve the minutes as presented. Ayes: Solak, Varney, Wellhausen, Padovini. Absent: Nash. The motion carried; the minutes of the regular meeting of February 16, 2012 are hereby approved. No corrections were made to the draft minutes of the special meeting of March 1, 2012.  Motion by Solak, supported by Padovini, to approve the minutes as presented. Ayes: Solak, Padovini, Wellhausen, Varney. Absent: Nash. The motion carried; the minutes of the special meeting of March 1, 2012 are hereby approved. 5. CITIZEN PARTICIPATION There was no Citizen participation 6. REPORT FROM LEGAL COUNSEL No formal legal report was presented. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence to Human Resources dated March 8, 2012 re: suspensions. b. Other correspondence received from: 1. Lord Abbett & Co. 2. Merrill Lynch – market value updates 3. Robbins Geller Rudman & Dowd LLP c. Magazines received: 1. Pensions & Investments for March 19th, April 2 and 16, 2012. 2. Institutional Investor for April 2012 3. Plan Sponsor for April 2012 8. BILLS AND EXPENDITURES b. Disbursements to retirees/members other than monthly benefit payments There were no disbursements to retirees/members other than monthly benefit payments this month. c. Checking Account Summary Beginning Balance $7,024.43 3/01/12 Additions (1) 1. 3/29 $5,000.00 Subtractions (8) $4,594.59 1. 3/15 Check 1874 448.40 WSJ for RP – 1 yr. sub. 2. 3/22 Check 1875 36.18 AT & T phone bill – 3/16/12 3. 3/15 Check 1876 250.00 MAPERS reg. (1) 4. 3/15 Check 1877 500.00 MAPERS reg. (2) 5. 3/02 Check 5198 1094.46 Contract Payment Nancy Duyck 6. 3/02 Check 5199 76.62 Contract fee – Gurin & Gurin 7. 3/16 Check 5200 1094.47 Contract Payment Nancy Duyck 8. 3/30 Check 5201 1094.46 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,388.67 1. 3/02 408.47 IRS Fed. tax w/h 2. 3/03 110.20 Michigan St. tax w/h  3. 3/02 461.54 IRA contribution 4. 3/16 408.46 IRS Fed. tax w/h Ending Balance $6,041.17 3/31/12 CONSENT AGENDA 8. BILLS AND EXPENDITURES – cont. d. Transmittal of Checks 1. $225.00 received from MAPERS for the refund of registration from the 2011 Fall MAPERS conference for Ken Solak. 2. $24,463.48 received from Brian Kensicki through payroll deduction for the purchase of 3 years of eligible EMS service credit. This was the final payment for the purchase, which started on April 2, 2009. 3. $52,839.85 received from Jeffrey Cline for the purchase of 2 years,1 month and 6 days of eligible municipal service credit. 4. $13,809.18 received from Mark Schmidt for the purchase of 5 months and 21 days of eligible college service credit. 9. FUNDS MANAGEMENT a. The current value of funds as of March 31, 2012 is detailed below: Clearing account $ 232,766.53 Intercontinental $ 7,720,991.24 McDonnell $ 16,011,607.45 Pimco $ 15,800,965.56 Wamco $ 15,777,877.42 MD Sass $ 19,166,186.92 Horizon $ 18,738,956.10 Earnest Partners $ 10,627,040.92 NFJ/Allianz $ 14,305,716.83 AIM/Invesco $ 13,986,276.78 Janus $ 19,532,010.49 Winslow $ 19,265,782.16 Checking account $ 6,041.17 TOTAL FUNDS $ 171,172,219.57 b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2011 tax year as of 4/12/12. The System has received $7,368,876.00 of the 2011/12 budget of $7,368,876.00, leaving a zero balance. c. A Securities Loan Statement Recap sheet as of 2/29/12 is enclosed showing the amounts received each month in the Securities Loan Program. Our earnings for the 2011/12 fiscal year through 2/29/12 are $1,091.83. d. Benefit Register Listing as of April 1, 2012 from Comerica Bank  showing 286 retirees/beneficiaries with a payout for April of $1,116,030.29 and a year-to-date of $4,774,024.02. e. The current Merrill Lynch Bond index for March 2012 is 2.02%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for February 2012 Abel/Noser has supplied the February 2012 report. 2. Bonnie DeMeyere – Application for DROP retirement Fire Captain Bonnie DeMeyere has submitted an application for DROP retirement effective April 27, 2012. All required paperwork is on file in the Pension Office. 3. Steven Jesperson – Application for DROP retirement Police Lt. Steven Jesperson has submitted an application for DROP retirement effective May 29, 2012. All required paperwork is on file in the Pension Office. 4. Brandon Flynn – Application for DROP retirement Fire Sergeant Brandon Flynn has submitted an application for DROP retirement effective June 12, 2012. All required paperwork is on file in the Pension Office. 5. Mark Schroeder – Application for DROP retirement Fire Leiutenant Mark Schroeder has submitted an application for DROP retirement effective June 15, 2012. All required paperwork is on file in the Pension Office. 6. David M. Smith – Application for DROP retirement Police Lieutenant David M. Smith has submitted an application for DROP retirement effective June 18, 2012. All required paperwork is on file in the Pension Office. 7. John Berg – Application for DROP retirement Police Captain John Berg has submitted an application for DROP retirement effective June 18, 2012. All required paperwork is on file in the Pension Office. 8. James Belmonte – Application for DROP retirement Police Sergeant James Belmonte has submitted an application for DROP retirement effective June 18, 2012. All required paperwork is on file in the Pension Office.  9. James Wood Jr. – Application for DROP retirement Police Sergeant James Wood Jr. has submitted an application for DROP retirement effective June 17, 2012. All required paperwork is on file in the Pension Office. 10. Patrick DePriest – Application for DROP retirement Police Sergeant Patrick DePriest has submitted an application for DROP retirement effective June 18, 2012. All required paperwork is on file in the Pension Office. 11. Paul LaBaere – Application for DROP retirement Police Sergeant Paul LaBaere has submitted an application for DROP retirement effective June 18, 2012. All required paperwork is on file in the Pension Office. 12. Kenneth Paul Durham – Application for DROP retirement Fire Lt. Kenneth Paul Durham has submitted an application for DROP retirement effective June 19, 2012. All required paperwork is on file in the Pension Office. 13. Tim Bade – buyback application - military – 4 years and 5 months The above named individual has submitted an application for buyback of military time as noted. All required paperwork is on file in the Pension Office. 14. James Andonoff – buyback application – EMS – 1 year and 4 days The above named individual has submitted an application for buyback of EMS time as noted. All required paperwork is on file in the Pension Office. 15. Brian Kensicki – adjusted hire (retirement) date The adjusted hire (retirement) date for Brian Kensicki is March 24, 2005 after the purchase of 3 years of eligible EMS service credit. 16. Jeffrey Cline – adjusted hire (retirement) date The adjusted hire (retirement) date for Jeffrey Cline is June 16, 1990 after the purchase of 2 years, 1 month and 6 days of eligible municipal service credit. 17. Mark Schmidt – adjusted hire (retirement) date The adjusted hire (retirement) date for Mark Schmidt is January 4,1992 after the purchase of 5 months and 21 days of eligible college service credit REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) 1. Disbursement to Rodwan Consulting Company in the amount of $2,700.00 for actuarial and consulting services rendered for the quarter ended 3/31/12. 2. Disbursement to MD Sass in the amount of $21,466.57 for investment management fees for quarter ended 3/31/12. 3. Disbursement to Merrill Lynch in the amount of $11,647.67 for quarterly SPA fee for the Horizon account for the quarter ended 6/30/12. 4. Disbursement to Merrill Lynch in the amount of $26,080.56 for quarterly Consults fee for the AIM/Invesco account for the quarter ended 6/30/12. 5. Disbursement to Merrill Lynch in the amount of $36,421.83 for quarterly Consults fee for the Janus account for the quarter ended 6/30/12. 6. Disbursement to Merrill Lynch in the amount of $35,888.83 for quarterly UMA fee for the Winslow account for the quarter ended 6/30/12. 7. Disbursement to Merrill Lynch in the amount of $29,710.02 for quarterly UMA fee for the NFJ/Allianz account for the quarter ended 6/30/12. 8. Disbursement to Merrill Lynch in the amount of $20,730.60 for quarterly UMA fee for the Earnest Partners account for the quarter ended 6/30/12. 9. Disbursement to Merrill Lynch in the amount of $30,817.60 for quarterly UMA fee for the Pimco account for the quarter ended 6/30/12. 10. Disbursement to Merrill Lynch in the amount of $30,648.80 for quarterly UMA fee for the WAMCO account for the quarter ended 6/30/12. 11. Disbursement to McDonnell Investment Management in the amount of $7,940.10 for investment management fees for the quarter ended 3/31/112. 12. Disbursement to Comerica Bank in the total amount of $4,251.44 for services rendered to the Clearing, Intercontinental, McDonnell, and MD Sass accounts for the quarter ended 3/31/12. 13. Disbursement to Horizon in the amount of $23,297.53 for  quarterly investment management fees for the quarter ended 3/31/12. Motion by Padovini, supported by Wellhausen, to approve the bills as presented. Ayes: Padovini, Wellhausen, Solak, Varney. Absent: Nash. The motion carried. REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 18. Antoinette Fett – Workers’ Compensation Compromise - discussion Police Officer Antoinette Fett was on the STD report from 2010. She challenged the report stating that the disability was work-related. A compromise ruling has now been signed and received by the Board. An e-mail has also been received from Mark Carufel. Motion by Solak, supported by Padovini, to approve the additional 25 days of service credit approved by the City. Ayes: Solak, Padovini, Wellhausen, Varney. Absent: Nash. The motion carried. 19. Joseph Opalewski – annuity withdrawal disbursement - discussion Captain Joe Opalewski of the Fire Department terminated his DROP retirement as of December 17, 2011. He requested his annuity withdrawal. Motion by Wellhausen, supported by Solak, to approve the annuity withdrawal disbursement as submitted. Ayes: Wellhausen, Solak, Padovini, Varney. Absent: Nash. The motion carried. 20. Lay-offs - discussion The Board discussed the pending lay-offs as they relate to prior buybacks by laid off employees. Legal Counsel stated  that employees may wish to leave their contributions and buyback funds in the Retirement System if they plan to work for another municipality in the future. Under the Reciprocal Act, they could combine their service credit from various municipalities. If they elect to have their money refunded to them, they would forfeit their service credit. 21. Board meeting dates – discussion President Solak has requested that the Board consider changing the meeting dates from Thursday to some other day due to his schedule being changed. Due to conflicts, there will be no change at this time. 22. May regular/quarterly meeting – discussion The Board discussed which managers, if any, should be brought in for the May regular/quarterly meeting on May 17, 2012 and the start time. Merrill Lynch will be attending. At this time, no additional managers will be requested to attend the meeting. 23. Account transfer for May 2012 benefit payments – discussion As of April 16, 2012, the Clearing Account had a balance of $291,350.03. An additional $1,000,000.00 is needed for the May 1, 2012 pension benefit payments and bills from the Clearing Account. Merrill Lynch has forwarded an e-mail that the additional amount needed should be taken from the Janus ($500,000.00) and Winslow ($500,000.00) accounts, based on the asset allocation targets. Motion by Solak, supported by Wellhausen, to approve the transfer of the appropriate amount of funds from the Janus and Winslow accounts evenly, based on the asset allocation targets, to provide for pension benefit payments and other disbursements on May 1, 2012. Ayes: Solak, Wellhausen, Padovini, Varney. Absent: Nash. The motion carried. 24. Alan Byrd – partial DROP distribution – discussion Lt. Alan Byrd of the Police Department terminated his DROP retirement as of June 18, 2008. He is requesting a partial DROP distribution from his DROP account. Motion by Solak, supported by Wellhausen, to approve the partial DROP distribution as presented.  Ayes: Solak, Wellhausen, Padovini, Varney. Absent: Nash. Motion carried. 25. Jerry Dameron – survivor benefit - discussion Retired Fire Capt. Jerry Dameron passed away on April 17, 2012. At retirement, Capt. Dameron chose a Regular retirement with the automatic 60% to his wife, Rosemary. An application for survivor benefits has been requested as well as a copy of Mr. Dameron’s death certificate. After discussion, the following resolution was considered: L 12-4-19-1 Re: JERRY DAMERON – RETIREE DEATH WHEREAS, the Board of Trustees is vested with the authority and fiduciary responsibility for the administration, management and operation of the Retirement System, and WHEREAS, the Board of Trustees has been advised that Jerry Dameron passed away on April 17, 2012, and WHEREAS, upon his retirement on September 19, 1992, Jerry Dameron selected a regular retirement pension benefit with an automatic sixty percent surviving spouse benefit, and WHEREAS, Section 6(1)(h) of Public Act 345 of 1937, as amended, provides in pertinent part that upon the death of a retirant who is receiving a regular retirement pension, his or her spouse, if living, shall receive a pension equal to 60% of the regular retirement pension the deceased was receiving, and WHEREAS, Jerry Dameron is survived by his wife, Rosemary Dameron, therefore be it RESOLVED, that the Board of Trustees wishes to express its condolences to the family and friends of Jerry Dameron, and further RESOLVED, that the Board of Trustees hereby directs that pension benefits be made payable to Rosemary Dameron in the amount of $2,005.18 consistent with Retirement System provisions, and further RESOLVED, that the Board of Trustees has requested a certified copy of Jerry Dameron’s death certificate for its files, and further RESOLVED, that a copy of this resolution be forwarded to Rosemary Dameron.  Motion by Wellhausen, supported by Solak, to adopt the resolution and approve the disbursement as presented. Ayes: Wellhausen, Solak, Padovini, Varney. Absent: Nash. The motion carried, the resolution is hereby adopted. 26. James Little – military buyback – 4 months and 24 days and municipal buyback - 7 months and 10 days - discussion The above named individual has submitted applications for buyback of military and municipal time as noted. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Solak, to approve the buybacks as presented. REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 26. James Little – military buyback – 4 months and 24 days and municipal buyback - 7 months and 10 days - discussion – Ayes: Wellhausen, Solak, Padovini, Varney. Absent: Nash. Motion carried. 11. Trustee Comments: Mr. Wellhausen reported that he has responded to numerous e-mails from the Budget Department concerning the Board’s budget for the fiscal year 2012-13. 12. ADJOURNMENT Motion by Padovini, supported by Wellhausen, to adjourn at 4:35 p.m. Ayes: Padovini, Wellhausen, Solak, Varney. Absent: Nash. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary