Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 DECEMBER 12, 2013 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48313 Mr. Solak reported to the Board that James Nash had resigned from the Board. 1. The regular meeting of the Police and Fire Retirement System was called to order by President Solak at 3:37 p.m. 2. Board Members present: Solak, Wellhausen, Varney. Absent: Lamerato (excused) and Tom Michaud (excused). Also present: Tim Brice, representing Merrill Lynch Private Client Group; Keith Potter representing IBEX Insurance Agency; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Solak, to approve the consent agenda as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato. The motion carried. Motion by Wellhausen, supported by Solak, to approve the regular agenda as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of November 21, 2013. Motion by Varney, supported by Solak, to approve the minutes as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato. The motion carried; the minutes of the regular meeting of November 21, 2013 are hereby approved. 5. CITIZEN PARTICIPATION There was no Citizen participation. Brian Baker, Richard Weiler, Paul Henig and Walt Hessell from the General Employees Retirement System were in attendance to listen to the alternative investment educational presentation. 6. REPORT FROM LEGAL COUNSEL No formal legal report was presented. Mr. Michaud was excused from this meeting. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental received November 14, 2013 re: 3rd quarter performance for U.S. REIF Fund and Fund III. b. Correspondence from Intercontinental dated November 25, 2013 re: distribution in U.S. REIF Fund. c. Correspondence to Comerica and McDonnell dated November 25, 2013 re: termination. d. Correspondence to all RFI firms dated December 3, 2013 re: letter of determination. e. Other correspondence received from: 1. Bernstein Litowitz Berger & Grossmann LLP 2. Janus performance update - October 3. Herndon performance update - October 4. McDonnell performance update – October 5. ING Investment Management 6. NCPERS legislative conference 7. Merrill Lynch – market value updates 8. Robbins Geller Rudman & Dowd LLP f. Magazines received: 1. Pensions & Investments for November 25, and December 9, 2013. 2. Institutional Investor for December 2013 3. Plan Sponsor for December 2013 8. BILLS AND EXPENDITURES c. Checking Account Summary  Beginning Balance $5,542.51 11/01/13 Subtractions (5) $1,995.93 1. 11/25 Check 1925 39.88 AT & T phone bill – 11/16/13 2. 11/27 Check 1926 60.26 Office Depot – supplies 3. 11/08 Check 5268 909.58 Contract Payment Nancy Duyck 4. 11/12 Check 5269 76.64 Contract fee – Gurin & Gurin 5. 11/22 Check 5270 909.57 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,320.70 1. 11/14 377.40 IRS Fed. tax w/h 2. 11/12 461.54 IRA contribution 3. 11/20 104.34 Michigan St. tax w/h 4. 11/27 377.42 IRS Fed. tax w/h Ending Balance $ 2,225.88 11/30/13 d. Transmittal of Checks There were no checks transmitted this month. 9. FUNDS MANAGEMENT a. The current value of funds as of November 30, 2013 is detailed below: Clearing account $ 3,421,068.77 Intercontinental $ 9,162,995.36 Winslow $ 22,929,855.81 Janus $ 22,544,516.08 Eagle $ 22,447,836.25 Herndon $ 21,991,040.35 Earnest Partners $ 12,583,347.63 NFJ/Allianz $ 16,925,189.19 AIM/Invesco $ 16,720,265.47 Pimco $ 16,619,873.44  McDonnell $ 15,675,016.71 Wamco $ 16,267,981.55 Checking account $ 2,225.88 TOTAL FUNDS $ 196,291,212.49 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 12/2/13. The System has received $7,126,200.00 of the 2013/14 budget of $8,095,472.00, leaving a $969,272.00 balance. c. Benefit Register Listing as of December 1, 2013 from Comerica Bank showing 300 retirees/beneficiaries with a payout for December of $1,182,623.52 and a year-to-date of $14,744,835.47. d. The current Merrill Lynch Bond index for November 2013 is 2.10%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for October 2013 Abel/Noser has supplied the October 2013 report. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) There were no bills for payment this month. b. Disbursement to retirees/members other than monthly benefit payments 1. Annual Benefit Allowances Disbursements to the following retirees for annual benefit allowance payable January 1, 2014 will be considered per applicable collective bargaining contracts, as detailed below: COA (22) - $800.00 Frank Bayones George Belkowski Gerald Brzeg Douglas Cedras James Coffin Robert Cory David Grabb Philip Hay Ronald Kokesh Eugene Lane Leroy Lang Ronald May Adrien John Meister James Morgan Meerhaeghe Thomas Wayne Orlando Walter Reghi Rossman Alan Savela Frederick Richard Stokes Norman Thomas Schoenrock FFA (24) - $800.00 Ronald Atkinson Paul Backus Chester Beasley Robert Beels Douglas Cashman Larry Crawford Arthur Irvin Droste Kenneth Durham Fernandez Lary Gregory Thomas Jones Sandy Korich William Lopez William Miller Joseph Myny Frederick Merle Newberry Charles Pereny Pawlowski William Stanley Poterek Donald Sitko Webster Thomas Ronald Wiegand Gerald Zupan Wisniewski MAP (5) - $500.00 Gene Blanchard Terence Burns Bobby Collins Claude Girardi Ralph Goode Motion by Varney, supported by Wellhausen, to approve disbursements as presented. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato. The motion carried. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 2. Alternative Investments educational presentation - discussion Tim Brice was in attendance to give an educational presentation on alternative investments for the Board’s future consideration. No action was taken at this time. 3. Fiduciary liability insurance – discussion Keith Potter of Ibex Insurance Agency was in attendance to discuss the quotes for fiduciary liability insurance. Motion by Varney, supported by Wellhausen, to table this item until the next meeting. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato. The motion carried. 11. Trustee CommentS Ms. Varney noted that the City Council would probably appoint a new Board member to replace James Nash at their January or February meetings. It is a two step process. 12. ADJOURNMENT Motion by Solak, supported by Wellhausen, to adjourn at 5:22 p.m. Ayes: Solak, Wellhausen, Varney. Absent: Lamerato. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary