Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 OCTOBER 17, 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 Chairman Lamerato at 3:32 p.m. 2. Board Members present: Lamerato, Wellhausen, Varney. Absent: Solak 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: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried. Motion by Varney, supported by Wellhausen, to approve the regular agenda as presented. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of September 19, 2013. Motion by Varney, supported by Wellhausen, to approve the minutes as presented. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried; the minutes of the regular meeting of September 19, 2013 are hereby approved. No corrections were made to the draft minutes of the special meeting of September 12, 2013. Motion by Varney, supported by Wellhausen, to approve the minutes as presented. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried; the minutes of the special meeting of September 12, 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 commented on the Comerica Securities Lending proposed settlement. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Other correspondence received from: 1. Janus performance updates 2. McDonnell performance updates 3. Merrill Lynch – market value updates 4. Robbins Geller Rudman & Dowd LLP b. Magazines received: 1. Pensions & Investments for September 30 and October 14, 2013. 2. Institutional Investor for October 2013 3. Plan Sponsor for October 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 $3,559.54 9/01/13 Additions (1)  1. 9/11 $5,000.00 Subtractions (4) $1,974.04 1. 9/26 Check 1920 39.93 AT & T phone bill – 9/16/13 2. 9/11 Check 5262 114.96 Contract fee – Gurin & Gurin 3. 9/13 Check 5263 909.57 Contract Payment Nancy Duyck 4. 9/27 Check 5264 909.58 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,603.64 1. 9/05 377.40 IRS Fed. tax w/h 2. 9/16 692.31 IRA contribution 3. 9/18 377.42 IRS Fed. tax w/h 4. 9/20 156.51 Michigan St. tax w/h Ending Balance $ 4,981.86 9/30/13 d. Transmittal of Checks There were no checks transmitted this month. 9. FUNDS MANAGEMENT a. The current value of funds as of September 30, 2013 is detailed below: Clearing account $ 6,360,168.42 Intercontinental $ 8,846,288.69 McDonnell $ 15,608,195.65 Winslow $ 21,316,940.91 Janus $ 21,054,715.70 Eagle $ 20,844,940.06 Herndon $ 20,246,305.53 Earnest Partners $ 11,924,924.93 NFJ/Allianz $ 16,297,276.50 AIM/Invesco $ 16,206,529.99 Pimco $ 15,550,886.20 Wamco $ 16,137,512.14 Checking account $ 4,981.86 TOTAL FUNDS $ 190,399,666.58 b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2013 tax year as of 10/11/13. The System has received $6,817,200.00 of the 2013/14 budget of $8,095,472.00, leaving a $1,278,272.00 balance. c. Benefit Register Listing as of October 1, 2013 from Comerica Bank showing 300 retirees/beneficiaries with a payout for October of $1,182,623.52 and a year-to-date of $12,322,588.43. d. The current Merrill Lynch Bond index for September 2013 is 2.13%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for August 2013 Abel/Noser has supplied the August 2013 report. 2. 2013 Annual verifications - update The 2013 annual verifications were mailed out on August 15, 2013 to all retirees/beneficiaries receiving benefits from the Retirement System, and due back by September 30th. 293 Verifications have been received to date. The Pension Technician will make reminder phone calls for the remaining verifications (6). REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) 1.Disbursement to Rodwan Consulting Company in the amount of $3,000.00 for actuarial and consulting services rendered for the quarter ended 9/30/13 and an actuarial calculation for the Jeffrey Valken EDRO. 2. Disbursement to the City of Sterling Heights in the amount of $2,940.90 for accounting services rendered for the quarter ended 9/30/13. 3. Disbursement to Mark Wellhausen in the amount of $526.50 for travel expenses for the 2013 Fall MAPERS Conference in Grand Rapids, MI on September 22-24, 2013. 4. Disbursement to Merrill Lynch in the amount of $31,702.88 for the quarterly Herndon account UMA fee for the quarter ended 12/31/13. 5. Disbursement to Merrill Lynch in the amount of $33,583.51 for the quarterly Winslow account UMA fee for the quarter ended 12/31/13. 6. Disbursement to Merrill Lynch in the amount of $28,888.05 for the quarterly NFJ/Allianz account UMA fee for the quarter ended 12/31/13. 7. Disbursement to Merrill Lynch in the amount of $26,005.26 for the quarterly Pimco account UMA fee for the quarter ended 12/31/13. 8. Disbursement to Merrill Lynch in the amount of $26,952.83 for the quarterly WAMCO account UMA fee for the quarter ended 12/31/13. 9. Disbursement to Merrill Lynch in the amount of $19,526.57 for the quarterly Earnest Partners account UMA fee for the quarter ended 12/31/13. Motion by Wellhausen, supported by Varney, to approve the bills as presented. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried. REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 3. Robert Smith – partial DROP distribution - discussion Police Sgt. Robert Smith terminated his DROP retirement as of July 31, 2008. He requested a partial DROP distribution from his DROP account. Motion by Wellhausen, supported by Varney, to approve the partial DROP distribution as presented. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried. 4. Consultant RFI – discussion The Consultant RFIs were due on Friday, September 20, 2013. Seven were received in the Board office. Motion by Wellhausen, supported by Lamerato, to postpone this item until the November regular meeting due to the absence of two Board members. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried. 5. Fiduciary liability insurance – discussion No additional proposals were received. The Board discussed doing a Request For Proposal through a broker. Motion by Wellhausen, supported by Lamerato, to do an official Request For Proposal through an insurance broker for fiduciary liability insurance. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried. 11. Trustee CommentS None. 12. ADJOURNMENT Motion by Wellhausen, supported by Varney, to adjourn at 4:21 p.m. Ayes: Wellhausen, Lamerato, Varney. Absent: Solak and Nash. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary