Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JULY 19, 2012 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48313 The Board welcomed new member, John Lamerato, who was appointed by City Council to a term expiring June 30, 2016. 1. The regular meeting of the Police and Fire Retirement System was called to order by President Solak at 4:04 p.m. 2. Board Members present: Solak, Wellhausen, Nash, Lamerato, Varney. Also present: Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Nash, to approve the consent agenda as presented. Ayes: All. The motion carried. The following items were added to the regular agenda: 10 a 14 James Andonoff – DROP resolution – discussion 15 James Little – DROP resolution - discussion 16 Gary Choate – DROP resolution - discussion 17 Richard Tomaszewski – DROP resolution - discussion Motion by Varney, supported by Wellhausen, to approve the regular agenda as amended. Ayes: All. The motion carried. Regular Meeting Minutes – July 19, 2012 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of June 21, 2012. Motion by Varney, supported by Nash, to approve the minutes as presented. Ayes: Varney, Nash, Solak, Wellhausen. Abstain: Lamerato. The motion carried; the minutes of the regular meeting of June 21, 2012 are hereby approved. No corrections were made to the draft minutes of the special meeting of June 7, 2012. Motion by Varney, supported by Solak, to approve the minutes as presented. Ayes: Varney, Solak, Wellhausen, Nash. Abstain: Lamerato. The motion carried; the minutes of the special meeting of June 7, 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 presented the Board with a legislative update for the Board’s review. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence to the City of Board meeting dates for fiscal year 2012/13. b. Pension Board Terms c. Other correspondence received from: 1. Form ADV Part 2 from Allianz, Invesco, Janus, Winslow, PIMCO, WAMCO and Earnest Partners 2. Merrill Lynch – market value updates 3. Robbins Geller Rudman & Dowd LLP Regular Meeting Minutes – July 19, 2012 Page Three CONSENT AGENDA 7. CORRESPONDENCE – cont. d. Magazines received: 1. Pensions & Investments for June 25 and July 9, 2012. 2. Institutional Investor for July 2012 3. Plan Sponsor for July 2012 8. BILLS AND EXPENDITURES c. Checking Account Summary Beginning Balance $2,691.50 6/01/12 Additions (1) 1. 6/6 $5,000.00 Subtractions (4) $2,301.70 1. 6/27 Check 1881 36.15 AT & T phone bill – 6/16/12 2. 6/08 Check 5209 1,094.46 Contract Payment Nancy Duyck 3. 6/08 Check 5210 76.62 Contract fee – Gurin & Gurin 4. 6/22 Check 5211 1,094.47 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,403.57 1. 6/11 125.10 Michigan St. tax w/h 2. 6/12 461.54 IRA contribution 3. 6/13 408.47 IRS Fed. tax w/h 4. 6/27 408.46 IRS Fed. tax w/h Ending Balance $3,986.23 6/30/12 d. Transmittal of Checks There were no checks transmitted this month. 9. FUNDS MANAGEMENT a. The current value of funds as of June 30, 2012 is detailed below: Clearing account $ 335,155.95 Intercontinental $ 8,134,883.24 McDonnell $ 15,954,326.42 Pimco $ 16,172,054.12 Wamco $ 16,098,415.41 Regular Meeting Minutes – July 19, 2012 Page Four CONSENT AGENDA 9. FUNDS MANAGEMENT a. The current value of funds as of June 30, 2012 is detailed below: cont. MD Sass $ 17,614,358.47 Horizon $ 17,604,771.76 Earnest Partners $ 9,401,534.31 NFJ/Allianz $ 13,416,804.75 AIM/Invesco $ 13,235,333.70 Janus $ 17,919,185.90 Winslow $ 17,223,160.27 Checking account $ 3,986.23 TOTAL FUNDS $ 163,113,970.53 b. The System received all of the 2011/12 budget of $7,368,876.00 as of April 12, 2012. c. A Securities Loan Statement Recap sheet as of 5/31/12 is enclosed showing the amounts received each month in the Securities Loan Program. Our earnings for the 2011/12 fiscal year through 5/31/12 are $1,293.13. ? d. Benefit Register Listing as of July 1, 2012 from Comerica Bank showing 289 retirees/beneficiaries with a payout for July of $1,125,503.06 and a year-to-date of $8,677,915.93. e. The current Merrill Lynch Bond index for June 2012 is 1.81%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for May 2012 Abel/Noser has supplied the May 2012 report. 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 6/30/12. Regular Meeting Minutes – July 19, 2012 Page Five REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) – cont. 2. Disbursement to the City of Sterling Heights in the total amount of $4,599.06 for accounting services rendered for the quarter ended 6/30/12. 3. Disbursement to Comerica Bank in the total amount of $4,005.33 for services rendered to the Clearing, Intercontinental, McDonnell, and MD Sass accounts for the quarter ended 6/30/12. 4. Disbursement to MD Sass in the amount of $22,988.12 for investment management fees for quarter ended 6/30/12. 5. Disbursement to McDonnell Investment Management in the amount of $7,955.96 for investment management fees for the quarter ended 3/31/12. 6. Disbursement to Horizon in the amount of $21,885.17 for quarterly investment management fees for the quarter ended 6/30/12. 7. Disbursement to Merrill Lynch in the amount of $11,063.28 for quarterly SPA fee for the Horizon account for the quarter ended 9/30/12. 8. Disbursement to Merrill Lynch in the amount of $24,952.24 for quarterly Consults fee for the AIM/Invesco account for the quarter ended 9/30/12. 9. Disbursement to Merrill Lynch in the amount of $33,782.59 for quarterly Consults fee for the Janus account for the quarter ended 9/30/12. 10. Disbursement to Merrill Lynch in the amount of $25,834.74 for quarterly UMA fee for the Winslow account for the quarter ended 9/30/12. 11. Disbursement to Merrill Lynch in the amount of $22,473.16 for quarterly UMA fee for the NFJ/Allianz account for the quarter ended 9/30/12. 12. Disbursement to Merrill Lynch in the amount of $14,572.38 for quarterly UMA fee for the Earnest Partners account for the quarter ended 9/30/12. 13. Disbursement to Merrill Lynch in the amount of $27,029.60 for quarterly UMA fee for the Pimco account for the quarter ended 9/30/12. 14. Disbursement to Merrill Lynch in the amount of $26,831.95 for quarterly UMA fee for the WAMCO account for the quarter ended 9/30/12. Regular Meeting Minutes – July 19, 2012 Page Six REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) – cont. Motion by Solak, supported by Wellhausen, to approve the bills as presented. Ayes: All. The motion carried. b. Disbursement to retirees/members other than monthly benefit payments 1. Dwight Miller Jr. - refund of contributions Police Officer Dwight Miller Jr. was hired on June 1, 2004 and resigned on May 15, 2012. Mr. Miller has requested a refund of his contributions and interest. Walt Hessell has calculated the amount of the refund in the amount of $32,711.41. All required paperwork is on file in the Pension Office. Motion by Solak, supported by Wellhausen, to approve the refund as presented. Ayes: All. The motion carried. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 2. Michael Deprez – DROP retirement termination information - discussion Interim Chief Michael Deprez of the Fire Department terminated his DROP retirement as of June 29, 2012. He is also rolling over his entire DROP account. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Solak, to approve the disbursements for the regular pension, annuity withdrawal, and DROP account and process the retirement certificate as submitted. Ayes: All. The motion carried. Regular Meeting Minutes – July 19, 2012 Page Seven REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business – cont. 3. Daniel Media – DROP retirement termination information - discussion Interim Assistant Chief Daniel Media of the Fire Department terminated his DROP retirement as of June 29, 2012. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Solak, to approve the disbursement for the regular pension and annuity withdrawal and process the retirement certificate as submitted. Ayes: All. The motion carried. 4. Robert Ferguson – DROP retirement termination information - discussion EMS Coordinator Robert Ferguson of the Fire Department terminated his DROP retirement as of June 29, 2012. He also requested a partial DROP distribution. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Solak, to approve the disbursement for the regular pension and partial DROP distribution and process the retirement certificate as submitted. Ayes: All. The motion carried. 5. Steven Jesperson - DROP resolution and annuity withdrawal – discussion Lt. Steven Jesperson applied for the DROP from the Police Department effective May 29, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: R 12-7-19-1 WHEREAS, LIEUTENANT STEVEN JESPERSON of the Police Department has voluntarily elected to participate in the DROP per application dated April 12, 2012, as submitted to the Police and Fire Retirement Board, and Regular Meeting Minutes – July 19, 2012 Page Eight REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 5. Steven Jesperson - DROP resolution and annuity withdrawal – discussion cont. WHEREAS, LIEUTENANT STEVEN JESPERSON has elected to DROP, effective May 29, 2012, per Appendix A of the applicable collective bargaining agreement, and WHEREAS, LIEUTENANT STEVEN JESPERSON has served the City of Sterling Heights Police Department for 23 years, 8 months and 28 days, which includes 3 years of college service credit, as of the date of the DROP Election, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that LIEUTENANT STEVEN JESPERSON meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to LIEUTENANT STEVEN JESPERSON and his spouse, TONYA JESPERSON, and the necessary reports have been reviewed and completed by the Actuary, which includes a copy of his marriage license and his spouse’s full name, documentation re: date of birth, and social security number, and WHEREAS, LIEUTENANT STEVEN JESPERSON has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the forenamed member has requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due LIEUTENANT STEVEN JESPERSON, as a result of this data, therefore be it Regular Meeting Minutes – July 19, 2012 Page Nine REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 5. Steven Jesperson - DROP resolution and annuity withdrawal – discussion – cont. RESOLVED, that LIEUTENANT STEVEN JESPERSON, after having been credited with 23 years, 8 months and 28 days, as of the date of the DROP Election, and is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective May 29, 2012. RESOLVED, that LIEUTENANT STEVEN JESPERSON request for annuity withdrawal, authorizing a payment representing the total amount of his contribution plus interest to the date of his participation in the DROP, be granted, and further RESOLVED, that LIEUTENANT STEVEN JESPERSON shall be paid an annuity withdrawal (total lump sum distribution from the defined contribution plan) of $98,638.22, and a yearly regular retirement pay in the amount of $88,974.00 or monthly benefits of $7,414.50, during DROP participation and after termination of employment, and further RESOLVED, that the Treasurer shall immediately calculate and pay LIEUTENANT STEVEN JESPERSON the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Solak, supported by Wellhausen, to adopt the resolution and approve the annuity withdrawal as presented. Ayes: All. The motion carried; the resolution is hereby adopted and the annuity withdrawal disbursement approved as presented. 6. Brandon Flynn - DROP resolution – discussion Sgt. Brandon Flynn applied for the DROP from the Fire Department effective June 12, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: Regular Meeting Minutes – July 19, 2012 Page Ten REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 6. Brandon Flynn - DROP resolution – discussion – cont. R 12-7-19-2 WHEREAS, SERGEANT FEO BRANDON FLYNN of the Fire Department has voluntarily elected to participate in the DROP per application dated March 15, 2012, as submitted to the Police and Fire Retirement Board, and WHEREAS, SERGEANT FEO BRANDON FLYNN has elected to DROP, effective June 12, 2012, per Appendix A of the applicable collective bargaining agreement, and WHEREAS, SERGEANT FEO BRANDON FLYNN has served the City of Sterling Heights Fire Department for 22 years, which includes 5 years of municipal service credit, as of the date of the DROP election, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that SERGEANT FEO BRANDON FLYNN meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to SERGEANT FEO BRANDON FLYNN and his spouse, REBECCA FLYNN, and the necessary reports have been reviewed and completed by the Actuary, which includes a copy of his marriage license and his spouse’s full name, documentation re: date of birth, and social security number, and WHEREAS, SERGEANT FEO BRANDON FLYNN has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the forenamed member has not requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and Regular Meeting Minutes – July 19, 2012 Page Eleven REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 6. Brandon Flynn - DROP resolution – discussion – cont. WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due SERGEANT FEO BRANDON FLYNN as a result of this data, therefore be it RESOLVED, that SERGEANT FEO BRANDON FLYNN after having been credited with 22 years as of the date of the DROP election, and is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective June 12, 2012. RESOLVED, that SERGEANT FEO BRANDON FLYNN shall be paid a yearly regular retirement pay in the amount of $73,772.64 or monthly benefits of $6,147.72, during DROP participation and after termination of employment because distribution of the annuity withdrawal was not requested, and further RESOLVED, that the Treasurer shall immediately calculate and pay SERGEANT FEO BRANDON FLYNN the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Wellhausen, supported by Solak, to adopt the resolution as presented. Ayes: . The motion carried; the resolution is hereby adopted. 7. Mark Schroeder - DROP resolution – discussion Lt. Mark Schroeder applied for the DROP from the Fire Department effective June 15, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: Regular Meeting Minutes – July 19, 2012 Page Twelve REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 7. Mark Schroeder - DROP resolution – discussion – cont. R 12-7-19-3 WHEREAS, LIEUTENANT MARK SCHROEDER of the Fire Department has voluntarily elected to participate in the DROP per application dated April 2, 2012, as submitted to the Police and Fire Retirement Board, and WHEREAS, LIEUTENANT MARK SCHROEDER has elected to DROP, effective June 15, 2012, per Appendix G of the applicable collective bargaining agreement, and WHEREAS, LIEUTENANT MARK SCHROEDER has served the City of Sterling Heights Fire Department for 25 years which includes 5 years of municipal service credit, as of the date of the DROP ELECTION, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that LIEUTENANT MARK SCHROEDER meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to LIEUTENANT MARK SCHROEDER and his spouse, DEBORAH SCHROEDER, and the necessary reports have been reviewed and completed by the Actuary, which includes a copy of his marriage license and his spouse’s full name, documentation re: date of birth, and social security number, and WHEREAS, LIEUTENANT MARK SCHROEDER has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the forenamed member has requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and Regular Meeting Minutes – July 19, 2012 Page Thirteen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 7. Mark Schroeder - DROP resolution – discussion – cont. WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due LIEUTENANT MARK SCHROEDER, as a result of this data, therefore be it RESOLVED, that LIEUTENANT MARK SCHROEDER, after having been credited with 25 years as of the date of the DROP ELECTION, is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective June 15, 2012. RESOLVED, that LIEUTENANT MARK SCHROEDER request for annuity withdrawal, authorizing a payment representing the total amount of his contribution plus interest to the date of his participation in the DROP, be granted, and further RESOLVED, that LIEUTENANT MARK SCHROEDER shall be paid an annuity withdrawal (total lump sum distribution from the defined contribution plan) of $100,571.95, and a yearly regular retirement pay in the amount of $87,814.68 or monthly benefits of $7,317.89, after DROP participation and termination of employment, and further RESOLVED, that LIEUTENANT MARK SCHROEDER shall be credited $7,954.23 monthly during the period of DROP participation because distribution of the annuity withdrawal was deferred until termination of employment, and further RESOLVED, that the Treasurer shall immediately calculate and pay LIEUTENANT MARK SCHROEDER the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Wellhausen, supported by Solak, to adopt the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. Regular Meeting Minutes – July 19, 2012 Page Fourteen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business – cont. 8. Election of Officers – discussion The Board will need to elect Officers for the 2012/13 fiscal year. Motion by Nash, supported by Lamerato, to reappoint the existing officers: Kenneth Solak as President and Mark Wellhausen as Secretary. Ayes: All. The motion carried. 9. 2012 Fall MAPERS Conference – discussion The Board received registration information for the 2012 MAPERS Fall Conference. It is scheduled for September 9-11, 2012 at the Grand Hotel on Mackinac Island. Three trustees are budgeted to attend this conference. Motion by Solak, supported by Wellhausen, to approve up to three trustees to attend the 2012 Fall MAPERS Conference. Ayes: All. The motion carried. The City Treasurer will not be attending the conference and John Lamerato will be attending as a member from his present employer. The City Treasurer mentioned that the room rate was high for this conference, and the attendees might want to share a room. However, it was also noted that the registration fee was lowered to accommodate the higher lodging rates. Secretary Wellhausen mentioned that the education and training budget has been reduced substantially over the last three years. Tom Michaud stressed the importance of attending the Michigan conferences due to the member’s fiduciary responsibility. Regular Meeting Minutes – July 19, 2012 Page Fifteen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business – cont. 10. Pension Binder update – discussion The annual Pen-mast reports for active employees were processed as of June 30, 2012. The Board considered a draft summary annual report for the Pension Binder. Motion by Solak, supported by Wellhausen, to approve the pension binder update as presented. Ayes: All. The motion carried. 11. August regular/quarterly meeting – discussion The Board discussed the August regular/quarterly meeting. Merrill Lynch will be attending. After discussion, the following motion was made. Motion by Solak, supported by Nash, to leave the start time of the August 16, 2012 regular/quarterly meeting at 4:00 p.m. Ayes: All. The motion carried. Secretary Wellhausen will contact Brice to see if any money managers need to be brought in to the next quarterly meeting. 12. Richard Padovini – testimonial resolution – discussion A testimonial resolution was presented to Richard Padovini recognizing him for serving as a Board Trustee on the Board for the Sterling Heights Police & Fire Retirement System since its inception. Regular Meeting Minutes – July 19, 2012 Page Sixteen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 12. Richard Padovini – testimonial resolution – discussion – cont. TESTIMONIAL RESOLUTION OF APPRECIATION FOR TRUSTEE RICHARD PADOVINI By: The Trustees of the Sterling Heights Police and Fire Retirement System JULY 19, 2012 WHEREAS, Richard Padovini has faithfully served the Sterling Heights Police and Fire Retirement System as a Trustee pursuant to applicable Retirement System provisions, and WHEREAS, Trustee Padovini immediately displayed an understanding of the fiduciary responsibilities a Trustee must have to serve the members and beneficiaries of the Retirement System, and WHEREAS, Trustee Padovini carried out his fiduciary responsibilities with dedication, sincerity, scholarship, hard work and honor and has provided distinguished service to the Board and the members and beneficiaries of the Retirement System, and WHEREAS, the Trustees, the members and beneficiaries of the Retirement System, the City employees and citizenry owe a debt of gratitude to Trustee Padovini for his sacrifice and service to the Retirement System, therefore be it RESOLVED, that the Board of Trustees, on behalf of itself and all concerned, hereby expresses its gratitude and appreciation to Trustee Padovini for his honorable and distinguished service as a Trustee, and further RESOLVED, that the Board of Trustees, on behalf of all the aforementioned parties, says "Thank You Richard for a Job Well Done". Regular Meeting Minutes – July 19, 2012 Page Seventeen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 12. Richard Padovini – testimonial resolution – discussion – cont. Motion by Solak, supported by Wellhausen, to adopt the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. 13. Account transfer for August 2012 benefit payments – discussion As of July 16, 2012, the Clearing Account had a balance of $119,550.63. An additional $1,525,000.00 is needed for the August 1, 2012 pension benefit payments and bills from the Clearing Account. Merrill Lynch has forwarded an e-mail that the additional amounts needed should be as follows: $172,938 from Winslow, $172,938 from Janus, $172,938 from Horizon, $172,938 from MD Sass, $94,330 from Earnest, $133,634 from NFJ/Allianz, $133,634 from AIM/Invesco, $157,217 from PIMCO, $157,217 from McDonnell, and $157,216 from Western Asset, based on the asset allocation targets. Motion by Solak, supported by Varney, to approve the transfer of the appropriate amount of funds from the mentioned accounts, based on the asset allocation targets, to provide for pension benefit payments and bills on August 1, 2012. Ayes: All. The motion carried. 14. James Andonoff - DROP resolution – discussion Lt. James Andonoff applied for the DROP from the Fire Department effective June 11, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: Regular Meeting Minutes – July 19, 2012 Page Eighteen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 14. James Andonoff - DROP resolution – discussion – cont. R 12-7-19-4 WHEREAS, LIEUTENANT JAMES ANDONOFF of the Fire Department has voluntarily elected to participate in the DROP per application dated May 3, 2012, as submitted to the Police and Fire Retirement Board, and WHEREAS, LIEUTENANT JAMES ANDONOFF has elected to DROP, effective June 11, 2012, per Appendix G of the applicable collective bargaining agreement, and WHEREAS, LIEUTENANT JAMES ANDONOFF has served the City of Sterling Heights Fire Department for 24 years which includes 2 years, 7 months and 27 days of municipal service credit, and 1 year, 4 months and 7 days of EMS service credit, as of the date of the DROP ELECTION, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that LIEUTENANT JAMES ANDONOFF meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to LIEUTENANT JAMES ANDONOFF and his spouse, DIANE ANDONOFF, and the necessary reports have been reviewed and completed by the Actuary, which includes a copy of his marriage license and his spouse’s full name, documentation re: date of birth, and social security number, and WHEREAS, LIEUTENANT JAMES ANDONOFF has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the forenamed member has not requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and Regular Meeting Minutes – July 19, 2012 Page Nineteen REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 14. James Andonoff - DROP resolution – discussion – cont. WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due LIEUTENANT JAMES ANDONOFF, as a result of this data, therefore be it RESOLVED, that LIEUTENANT JAMES ANDONOFF, after having been credited with 24 years as of the date of the DROP ELECTION, is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective June 11, 2012. RESOLVED, that LIEUTENANT JAMES ANDONOFF shall be paid a yearly regular retirement pay in the amount of $92,353.80 or monthly benefits of $7,696.15, during DROP participation and after termination of employment because distribution of the annuity withdrawal was not requested, and further RESOLVED, that the Treasurer shall immediately calculate and pay LIEUTENANT JAMES ANDONOFF the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Wellhausen, supported by Solak, to adopt the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. 15. James Little - DROP resolution – discussion Lt. James Little applied for the DROP from the Fire Department effective June 11, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: Regular Meeting Minutes – July 19, 2012 Page Twenty REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 15. James Little - DROP resolution – discussion – cont. R 12-7-19-5 WHEREAS, LIEUTENANT JAMES LITTLE of the Fire Department has voluntarily elected to participate in the DROP per application dated April 23, 2012, as submitted to the Police and Fire Retirement Board, and WHEREAS, LIEUTENANT JAMES LITTLE has elected to DROP, effective June 11, 2012, per Appendix G of the applicable collective bargaining agreement, and WHEREAS, LIEUTENANT JAMES LITTLE has served the City of Sterling Heights Fire Department for 23 years which includes 2 years, 7 months and 4 days of eligible municipal service credit; and 4 months and 24 days of eligible military service credit, as of the date of the DROP ELECTION, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that LIEUTENANT JAMES LITTLE meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to LIEUTENANT JAMES LITTLE and his spouse, SHARON LITTLE, and the necessary reports have been reviewed and completed by the Actuary, which includes a copy of his marriage license and his spouse’s full name, documentation re: date of birth, and social security number, and WHEREAS, LIEUTENANT JAMES LITTLE has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the forenamed member has requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and Regular Meeting Minutes – July 19, 2012 Page Twenty-One REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 15. James Little - DROP resolution – discussion – cont. WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due LIEUTENANT JAMES LITTLE, as a result of this data, therefore be it RESOLVED, that LIEUTENANT JAMES LITTLE, after having been credited with 23 years as of the date of the DROP ELECTION, is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective June 11, 2012. RESOLVED, that LIEUTENANT JAMES LITTLE request for annuity withdrawal, authorizing a payment representing the total amount of his contribution plus interest to the date of his participation in the DROP, be granted, and further RESOLVED, that LIEUTENANT JAMES LITTLE shall be paid an annuity withdrawal (total lump sum distribution from the defined contribution plan) of $99,230.57, and a yearly regular retirement pay in the amount of $82,916.76 or monthly benefits of $6,909.73, after DROP participation and termination of employment, and further RESOLVED, that LIEUTENANT JAMES LITTLE shall be credited $7,510.58 monthly during the period of DROP participation because distribution of the annuity withdrawal was deferred until termination of employment, and further RESOLVED, that the Treasurer shall immediately calculate and pay LIEUTENANT JAMES LITTLE the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Wellhausen, supported by Solak, to adopt the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. Regular Meeting Minutes – July 19, 2012 Page Twenty-Two REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business – cont. 16. Gary Choate - DROP resolution – discussion Lt. Gary Choate applied for the DROP from the Fire Department effective June 12, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: R 12-7-19-6 WHEREAS, LIEUTENANT GARY CHOATE of the Fire Department has voluntarily elected to participate in the DROP per application dated May 2, 2012, as submitted to the Police and Fire Retirement Board, and WHEREAS, LIEUTENANT GARY CHOATE has elected to DROP, effective June 12, 2012, per Appendix G of the applicable collective bargaining agreement, and WHEREAS, LIEUTENANT GARY CHOATE has served the City of Sterling Heights Fire Department for 22 years which includes 1 year, 11 months and 3 days of municipal service credit, and 1 month of EMS service credit, as of the date of the DROP ELECTION, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that LIEUTENANT GARY CHOATE meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to LIEUTENANT GARY CHOATE, a single man, and the necessary reports have been reviewed and completed by the Actuary, which includes documentation re: date of birth, and social security number, and WHEREAS, LIEUTENANT GARY CHOATE has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the Trustees acknowledge that an EDRO is on file with the Board, and shall pay pension benefits consistent with said Court Order, and Regular Meeting Minutes – July 19, 2012 Page Twenty-Three REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 16. Gary Choate - DROP resolution – discussion – cont. WHEREAS, the forenamed member has requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due LIEUTENANT GARY CHOATE, as a result of this data, therefore be it RESOLVED, that LIEUTENANT GARY CHOATE, after having been credited with 22 years as of the date of the DROP ELECTION, is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective June 12, 2012. RESOLVED, that LIEUTENANT GARY CHOATE request for annuity withdrawal, authorizing a payment representing the total amount of his contribution plus interest to the date of his participation in the DROP, be granted, and further RESOLVED, that LIEUTENANT GARY CHOATE shall be paid an annuity withdrawal (total lump sum distribution from the defined contribution plan) of $98,020.92, and a yearly regular retirement pay in the amount of $68,538.12 or monthly benefits of $5,711.51, after DROP participation and termination of employment, and further RESOLVED, that LIEUTENANT GARY CHOATE shall be credited $6,208.16 monthly during the period of DROP participation because distribution of the annuity withdrawal was deferred until termination of employment, and further RESOLVED, that the Treasurer shall immediately calculate and pay LIEUTENANT GARY CHOATE the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Wellhausen, supported by Solak, to adopt the resolution as presented. Regular Meeting Minutes – July 19, 2012 Page Twenty-Four REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 16. Gary Choate - DROP resolution – discussion – cont. Ayes: All. The motion carried; the resolution is hereby adopted. 17. Richard Tomaszewski - DROP resolution – discussion FEO Richard Tomaszewski applied for the DROP from the Fire Department effective June 12, 2012. All required paperwork is on file in the Pension Office. The following DROP retirement resolution was considered: R 12-7-19-7 WHEREAS, FEO RICHARD TOMASZEWSKI of the Fire Department has voluntarily elected to participate in the DROP per application dated April 18, 2012, as submitted to the Police and Fire Retirement Board, and WHEREAS, FEO RICHARD TOMASZEWSKI has elected to DROP, effective June 12, 2012, per Appendix G of the applicable collective bargaining agreement, and WHEREAS, FEO RICHARD TOMASZEWSKI has served the City of Sterling Heights Fire Department for 22 years and 8 days, which includes 5 years and 6 months of municipal service credit, as of the date of the DROP election, and WHEREAS, the Trustees of the Police and Fire Retirement Board, Act 345 have verified that FEO RICHARD TOMASZEWSKI meets all those requirements for participation in the DROP as established in both Act 345 and the applicable collective bargaining agreement, and WHEREAS, the Trustees have provided all the necessary personal and financial data to the Board’s Actuary as it relates to FEO RICHARD TOMASZEWSKI and his spouse, LUCY TOMASZEWSKI, and the necessary reports have been reviewed and completed by the Actuary, which includes a copy of his marriage license and his spouse’s full name, documentation re: date of birth, and social security number, and Regular Meeting Minutes – July 19, 2012 Page Twenty-Five REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 17. Richard Tomaszewski - DROP resolution – discussion – cont. WHEREAS, FEO RICHARD TOMASZEWSKI has reviewed this data and has elected to receive his DROP participation benefit in the form of a regular retirement pension with a potential benefit of sixty (60%) percent of the regular retirement pension being paid to his surviving spouse, who must also be his spouse on the effective date of retirement and death, and WHEREAS, the forenamed member has requested an annuity withdrawal (total lump sum distribution from the defined contribution plan) under the provisions of the Retirement System and collective bargaining agreement, and WHEREAS, the Police and Fire Retirement Board is now in receipt of the necessary final average compensation amount. The Board of Trustees on receipt of this data forwarded it to the Board Actuary for the updated retirement data. The actuary has indicated to the Board, in writing, the retirement benefits due FEO RICHARD TOMASZEWSKI, as a result of this data, therefore be it RESOLVED, that FEO RICHARD TOMASZEWSKI, after having been credited with 22 years and 8 days, as of the date of the DROP election, is hereby granted DROP participation in accordance with Act 345 and the collective bargaining agreement, effective June 12, 2012. RESOLVED, that FEO Richard Tomaszewski’s request for annuity withdrawal, authorizing a payment representing the total amount of his contribution plus interest to the date of his participation in the DROP, be granted, and further RESOLVED, that FEO RICHARD TOMASZEWSKI shall be paid an annuity withdrawal (total lump sum distribution from the defined contribution plan) of $77,352.78, and a yearly regular retirement pay in the amount of $63,976.20 or monthly benefits of $5,331.35, after DROP participation and termination of employment, and further RESOLVED, that FEO RICHARD TOMASZEWSKI shall be credited $5,794.95 monthly during the period of DROP participation because distribution of the annuity withdrawal was deferred until termination of employment, and further Regular Meeting Minutes – July 19, 2012 Page Twenty-Six REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 17. Richard Tomaszewski - DROP resolution – discussion – cont. RESOLVED, that the Treasurer shall immediately calculate and pay FEO RICHARD TOMASZEWSKI the appropriate amounts. All amounts shall be paid into the DROP account until the date of termination, after which time distribution shall be made in accordance with the collective bargaining agreement. Motion by Wellhausen, supported by Solak, to adopt the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. 11. TRUSTEE COMMENTS: None. 12. ADJOURNMENT Motion by Nash, supported by Wellhausen, to adjourn at 4:39 p.m. Ayes: All. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary