Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JULY 18, 2013 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 3:32 p.m. 2. Board Members present: Solak, Wellhausen, Varney. Absent: Lamerato and Nash (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: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. The following item was added to the regular agenda: 10 a 8 Glenn French – DROP retirement termination – discussion Motion by Varney, supported by Wellhausen, to approve the regular agenda as amended. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of June 20, 2013. Motion by Solak, supported by Varney, to approve the minutes as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried; the minutes of the regular meeting of June 20, 2013 are hereby approved. 5. CITIZEN PARTICIPATION There was no Citizen participation 6. REPORT FROM LEGAL COUNSEL No formal legal report was presented. Mr. Michaud requested that the Board go into closed session to discuss litigation. Motion by Solak, supported by Wellhausen, to go into closed session to discuss litigation. Ayes: Solak, Wellhausen, Varney (by roll call vote). Absent: Lamerato and Nash. The motion carried. Motion by Solak, supported by Wellhausen, to exit closed session. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. The following motion was considered: Motion by Solak, supported by Wellhausen, to authorize Legal Counsel to proceed with litigation re: Kohl’s. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. 6. REPORT FROM LEGAL COUNSEL – cont. The motion carried. Mr. Michaud reviewed the Legislative update of July 18, 2013. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Meeting dates for 2013/14 fiscal year. b. Listing of Board Terms c. Listing of annual returns for Pension and OPEB funds from City Treasurer d. Correspondence from ING Investment Management (formerly Aeltus Investment Management) dated June 17, 2013 re: litigation distribution. e. Other correspondence received from: 1. Association of Benefit Administrators Inc. 2. Intercontinental Annual Meeting 3. Merrill Lynch – market value updates 4. Robbins Geller Rudman & Dowd LLP 5. University Conference Services f. Magazines received: 1. Pensions & Investments for June 24 and July 8, 2013. 2. Institutional Investor for July 2013 3. Plan Sponsor for July 2013 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 $6,573.50 6/01/13 Additions (1) 1. 6/20 $5,000.00 Subtractions (7) $2,889.52 1. 6/27 Check 1907 97.12 Office Depot – supplies 2. 6/21 Check 1908 97.20 ND – postage reimbursement 3. 6/24 Check 1909 317.53 JV – MAPERS travel expenses 4. 6/21 Check 1911 481.88 KS – MAPERS travel expenses Regular Meeting Minutes – July 18, 2013 Page Four CONSENT AGENDA 8. BILLS AND EXPENDITURES c. Checking Account Summary - cont. 5. 6/10 Check 5252 76.64 Contract fee – Gurin & Gurin 6. 6/07 Check 5253 909.58 Contract Payment Nancy Duyck 7. 6/21 Check 5254 909.57 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,320.70 1. 6/10 461.54 IRA contribution 2. 6/12 377.40 IRS Fed. tax w/h 3. 6/20 104.34 Michigan St. tax w/h 4. 6/26 377.42 IRS Fed. tax w/h Ending Balance $7,363.28 6/30/13 d. Transmittal of Checks There were no checks transmitted this month. 9. FUNDS MANAGEMENT The current value of funds as of June 30, 2013 is detailed below: Clearing account $ 1,430,333.26 Intercontinental $ 9,206,828.04 McDonnell $ 15,555,205.12 Winslow $ 19,729,626.32 Janus $ 19,792,401.22 Eagle $ 19,571,521.83 Herndon $ 19,313,287.74 Earnest Partners $ 10,894,199.03 NFJ/Allianz $ 14,975,419.82 AIM/Invesco $ 14,688,696.05 Pimco $ 15,773,060.45 Wamco $ 16,028,702.36 Checking account $ 7,363.28 TOTAL FUNDS $ 176,966,644.52 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 6/28/13. The System has received $8,815,031.00 of the 2012/13 budget of $8,815,031.00, leaving a zero balance. Regular Meeting Minutes – July 18, 2013 Page Five CONSENT AGENDA 9. FUNDS MANAGEMENT – cont. c.Benefit Register Listing as of July 1, 2013 from Comerica Bank showing 295 retirees/beneficiaries with a payout for July of $1,157,232.07 and a year-to-date of $8,514,279.04. d.The current Merrill Lynch Bond index for June 2013 is 2.14%. 10. BENEFITS & PLAN ADMINISTRATION Old Business Abel/Noser Reports for May 2013 Abel/Noser has supplied the May 2013 report. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) Disbursement to Rodwan Consulting Company in the amount of $2,700.00 for actuarial and consulting services rendered for the quarter ended 6/30/13. Disbursement to Merrill Lynch in the amount of $12,332.50 for quarterly SPA fee for the Eagle account for the quarter ended 9/30/13. Disbursement to Merrill Lynch in the amount of $27,767.14 for quarterly Consults fee for the AIM/Invesco account for the quarter ended 9/30/13. Disbursement to Merrill Lynch in the amount of $37,415.06 for quarterly Consults fee for the Janus account for the quarter ended 9/30/13. 5. Disbursement to Merrill Lynch in the amount of $28,969.93 for the quarterly Herndon account UMA fee for the quarter ended 9/30/13. 6. Disbursement to Merrill Lynch in the amount of $30,208.41 for the quarterly Winslow account UMA fee for the quarter ended 9/30/13. 7. Disbursement to Merrill Lynch in the amount of $16,886.01 for the quarterly Earnest Partners account UMA fee for the quarter ended 9/30/13. 8. Disbursement to Merrill Lynch in the amount of $25,083.83 for the quarterly NFJ/Allianz account UMA fee for the quarter ended 9/30/13. Regular Meeting Minutes – July 18, 2013 Page Six REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) – cont.  9. Disbursement to Merrill Lynch in the amount of $26,368.52 for the quarterly Pimco account UMA fee for the quarter ended 9/30/13. 10. Disbursement to Merrill Lynch in the amount of $26,747.26 for the quarterly WAMCO account UMA fee for the quarter ended 9/30/13. Motion by Solak, supported by Wellhausen, to approve the disbursements as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. 10. BENEFITS & PLAN ADMINISTRATION Old Business 2. 2013 MAPERS Fall Conference – discussion The Board received registration information for the 2013 MAPERS Fall Conference. It is scheduled for September 22-24, 2013 at the Amway Grand Plaza Hotel in Grand Rapids, MI. Three members are budgeted to attend this conference. Motion by Varney, supported by Solak, to register three trustees to attend the 2013 MAPERS Fall Conference, based upon individual availability. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. Mr. Nash will not be attending the conference. 3. Fiduciary Liability Insurance update - discussion Ms. Varney reported to the Board that the fiduciary liability insurance requests are still in progress. REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION Old Business - cont. 4. Pension Binder update – discussion The annual Pen-mast reports for active employees were processed as of June 30, 2013. The Board considered the draft summary annual report for the Pension Binder.  Motion by Wellhausen, supported by Varney, to approve the summary annual report for the pension binder as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. 5. John Opipari – DROP retirement termination – discussion Police Officer John Opipari of the Police Department terminated his DROP retirement as of June 28, 2013. He also requested a partial DROP distribution. All required paperwork is on file in the Pension Office. Motion by Solak, supported by Wellhausen, to approve the disbursement for the regular pension and partial DROP distribution and process the retirement certificate as submitted. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. 6. Glenn French – partial DROP distribution – discussion Retired Sergeant Glenn French of the Police Department terminated his DROP retirement as of June 28, 2013. He is requesting a partial DROP distribution from his DROP account. Motion by Varney, supported by Solak, to approve the disbursement for the partial DROP distribution as submitted. REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION Old Business 6. Glenn French – partial DROP distribution – discussion – cont. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. 7. Account transfer for August 2013 benefit payments – discussion As of July 15, 2013, the Clearing Account had a balance of $315,127.14. An additional $1,069,000.00 is needed for the August 1, 2013 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 Winslow ($534,500.00) and Janus ($534,500.00) accounts equally, based on the asset allocation targets. Motion by Solak, supported by Wellhausen, to approve the transfer of the appropriate amount of funds from the Winslow and Janus accounts, based on the asset allocation targets, to provide for pension benefit payments and other disbursements on August 1, 2013. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. 8. Glenn French – DROP retirement termination information - discussion Police Sergeant Glenn French of the Police Department terminated his DROP retirement as of June 28, 2013. All required paperwork is on file in the Pension Office. Also, due to his termination, the Alternate Payee’s benefit is revised. Motion by Solak, supported by Wellhausen, to approve the disbursement for the regular pension and process the retirement certificate as submitted. REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION Old Business 8. Glenn French – DROP retirement termination information – discussion – cont. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried. 11. Trustee CommentS A draft RFI for Investment Consultant was given to the Board to review by Legal Counsel. Legal Counsel suggested that the Board send a second letter reminding vendors to comply with the new P. A. 314 requirements and return the appropriate forms. 12. ADJOURNMENT Motion by Wellhausen, supported by Varney, to adjourn at 4:13 p.m. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato and Nash. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary