Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 DECEMBER 13, 2012 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48313 1. The regular meeting of the Police and Fire Retirement System was called to order by President Solak at 4:13 p.m. 2. Board Members present: Solak, Wellhausen, Nash, Varney. Absent: Lamerato (excused). Also present: Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Varney, to approve the consent agenda as presented. Ayes: Wellhausen, Varney, Solak, Nash. Absent: Lamerato. The motion carried. The following item was added to the regular agenda: 10 a 6 Beatrice Calka – partial payment - discussion Motion by Wellhausen, supported by Nash, to approve the regular agenda as amended. Ayes: Wellhausen, Nash, Solak, Varney. Absent: Lamerato. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of November 15, 2012. Motion by Varney, supported by Nash, to approve the minutes as presented. Ayes: Varney, Nash, Solak, Wellhausen. Absent: Lamerato. The motion carried; the minutes of the regular meeting of November 15, 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 reported that Public Act 347 was signed into law. This new law contains numerous amendments to Public Act 314. He will submit a copy of the new law and highlight the changes for the January 2013 meeting. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental dated November 16, 2012 re: distribution from US REIF Fund. b. Other correspondence received from: 1. ING Investment Management Inc. 2. Merrill Lynch – market value updates 3. NCPERS 4. Robbins Geller Rudman & Dowd LLP c. Magazines received: 1. Pensions & Investments for November 26, and December 10, 2012. 2. Institutional Investor for December 2012 3. Plan Sponsor for December 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 $3,182.48 11/01/12 Additions (1)  1. 11/08 $5,000.00 Subtractions (5) $2,024.20 Check 1. 11/30 34.17 Office Depot Order 1891 Check AT & T phone bill – 2. 11/30 37.37 1892 11/16/12 Check Contract Payment Nancy 3. 11/13 938.02 5227 Duyck Check Contract fee – Gurin & 4. 11/06 76.62 5228 Gurin Check Contract Payment Nancy 5. 11/23 938.02 5229 Duyck Electronic withdrawals (4) $1,263.80 1. 11/14 348.96 IRS Fed. tax w/h 2. 11/15 461.54 IRA contribution 3. 11/20 104.34 Michigan St. tax w/h 4. 11/28 348.96 IRS Fed. tax w/h Ending Balance $4,894.48 11/30/12 d. Transmittal of Checks There were no checks transmitted this month. 9. FUNDS MANAGEMENT a. The current value of funds as of November 30, 2012 is detailed below: Clearing account $ 3,057,469.86 Intercontinental $ 8,598,267.51 McDonnell $ 16,117,787.10 Pimco $ 16,370,710.40 Wamco $ 16,448,809.42 Winslow $ 17,853,665.31 Janus $ 18,794,036.53 Eagle $ 18,472,116.37 Herndon $ 18,643,488.67  Earnest Partners $ 9,928,517.10 NFJ/Allianz $ 14,633,121.44 AIM/Invesco $ 14,113,278.14 Checking $ 4,894.48 account TOTAL FUNDS $ 173,036,162.33 b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2012 tax year as of 12/12/12. The System has received $8,311,771.61 of the 2012/13 budget of $8,815,031.00, leaving a $503,259.39 balance. c. Benefit Register Listing as of December 1, 2012 from Comerica Bank showing 293 retirees/beneficiaries with a payout for December of $1,153,515.21 and a year-to-date of $16,339,614.74. d. The current Merrill Lynch Bond index for November 2012 is 1.56%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for October 2012 Abel/Noser has supplied the October 2012 report. 2. 2012 Annual verifications - update The 2012 annual verifications were mailed out on August 15, 2012 to all retirees/beneficiaries receiving benefits from the Retirement System. All verifications have now been received. 3. Ronald Gotowicki – Application for DROP retirement Police Sgt. Ronald Gotowicki has submitted an application for DROP retirement effective  January 27, 2013. All required paperwork is on file in the Pension Office. 4. Thomas Fett - Application for DROP retirement Police Capt. Thomas Fett has submitted an application for DROP retirement effective January 23, 2013. All required paperwork is on file in the Pension Office. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) No bills have been received for payment this month. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 5. Thomas Fett – college time –1 year - discussion The above named individual has submitted an application for buyback of college time as noted. All required paperwork is on file in the Pension Office. Motion by Solak, supported by Wellhausen, to approve the college buyback of one year. Ayes: Solak, Wellhausen, Nash, Varney. Absent: Lamerato. The motion carried. 6. Beatrice Calka – partial payment – discussion Beatrice Calka, the wife/elected beneficiary of Bernard Calka, passed away December 8, 2012. A death certificate has been received. A partial benefit was approved for the partial month of December made payable to her estate.  After discussion, the following resolution was considered: L 12-12-13-1 Re: BEATRICE C. CALKA – Elected Beneficiary 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, upon his retirement on August 1, 1984, Bernard B. Calka 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 retiree 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, Beatrice C. Calka is the surviving spouse/designated beneficiary of Bernard B. Calka, who died on October 10, 2010, and WHEREAS, the Board of Trustees have been advised that Beatrice C. Calka passed away on December 8, 2012, therefore be it RESOLVED, that the Board of Trustees wishes to express its condolences to the family and friends of Beatrice C. Calka, and further RESOLVED, that the Board of Trustees hereby directs that pension benefits be made payable to the Estate of Beatrice C. Calka in the amount of $363.87 consistent with Retirement System provisions, and further RESOLVED, that the Board of Trustees has received a copy of Mrs. Calka’s death certificate for its files, and further  RESOLVED, that a copy of this resolution be forwarded to the Estate of Beatrice C. Calka. Motion by Wellhausen, supported by Solak, to approve the resolution and the partial benefit as presented. Ayes: Wellhausen, Solak, Nash, Varney. Absent: Lamerato. The motion carried. 11. Trustee Comments Mr. Nash requested that sell disciplines be reviewed with the money managers. The Board will discuss this with the consultant at the February meeting. 12. ADJOURNMENT Motion by Nash, supported by Wellhausen, to adjourn at 4:35 p.m. Ayes: Nash, Wellhausen, Solak, Varney. Absent: Lamerato. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary