Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JULY 17, 2014 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 Schwarb at 3:31 p.m. 2. Board Members present: Wellhausen, Schwarb, Varney. Absent: Lamerato (excused), Maleszyk (excused), and Tom Michaud, Legal Counsel (excused). Also present: Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Schwarb, to approve the consent agenda as presented. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. The following item was added to the regular agenda: 10 a 6. Kevin Conlan – Partial DROP distribution - discussion Motion by Wellhausen, supported by Schwarb, to approve the regular agenda as amended. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of June 19, 2014. Motion by Varney, supported by Schwarb, to approve the minutes as presented. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. The motion carried; the minutes of the regular meeting of June 19, 2014 are hereby approved. 5. CITIZEN PARTICIPATION There was no Citizen participation. 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 dated June 27, 2014 re: distribution in Intercontinental Real Estate Investment Fund III. b. Other correspondence received from: 1. Merrill Lynch – market value updates 2. Pomerantz LLP 3. Robbins Geller Rudman & Dowd LLP 4. UNC Conference c. Magazines received: 1. Institutional Investor for June 2014 2. Pensions & Investments for June 23 and July 7, 2014 . 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 $4,254.20 6/01/14 Additions (1) 1. 6/12 $5,000.00 Subtractions (9) $3,284.79  1. 6/25 Check 1939 242.08 City of S.H. - Krueger EDRO calc. 2. 6/02 Check 1940 42.83 AT & T phone bill – 5/16/14 3. 6/20 Check 1942 188.00 ND – postage reimbursement 4. 6/23 Check 1943 435.28 MW - Spring MAPERS travel exp. 5. 6/25 Check 1944 435.28 RM – Spring MAPERS travel exp. 6. 6/25 Check 1945 42.83 AT & T phone bill – 6/16/14 7. 6/06 Check 5294 910.15 Contract Payment Nancy Duyck 8. 6/10 Check 5295 78.20 Contract fee – Gurin & Gurin 9. 6/20 Check 5296 910.14 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,319.56 1. 6/09 461.54 IRA contribution 2. 6/11 376.83 IRS Fed. tax w/h 3. 6/20 104.34 Michigan St. tax w/h 4. 6/25 376.85 IRS Fed. tax w/h Ending Balance $ 4,649.85 6/30/14 d. Transmittal of Checks There were no checks transmitted this month. 9. FUNDS MANAGEMENT a. The current value of funds as of June 30, 2014 is detailed below: Clearing account $ 2,767,868.39 Intercontinental $ 9,322,202.93 Winslow $ 24,308,341.58 Janus $ 23,507,118.13 Eagle $ 24,177,906.02 Herndon $ 23,703,997.42 Earnest Partners $ 14,166,379.95 NFJ/Allianz $ 17,013,336.55 AIM/Invesco $ 17,562,813.62 Wamco $ 23,419,185.07 Pimco $ 22,246,673.89 Checking account $ 4,649.85 TOTAL FUNDS $ 202,200,473.40 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 6/30/14. The System has received $8,095,472.00 of the 2013/14 budget of $8,095,472.00, leaving a zero balance. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2014 tax year as of 7/15/14. The System has received $442,000.00 of the 2014/15 budget of $7,953,970.00, leaving a $7,511,970.00 balance. c. Benefit Register Listing as of July 1, 2014 from Comerica Bank showing 307 retirees/beneficiaries with a payout for July of $1,219,854.67 and a year-to-date of $8,738,772.40. d. The current Merrill Lynch Bond index for June 2014 is 2.06%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for May 2014 Abel/Noser has supplied the May 2014 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 6/30/14. 2. Disbursement to the City of Sterling Heights in the amount of $823.36 for accounting services rendered for the second quarter 2014 and the Damm EDRO calculation. 3. Disbursement to Merrill Lynch in the amount of $29,254.44 for the quarterly NFJ/Allianz account UMA fee for the third quarter 2014. 4. Disbursement to Merrill Lynch in the amount of $22,228.52 for the quarterly Earnest Partners account UMA fee for the third quarter 2014. 5. Disbursement to Merrill Lynch in the amount of $36,212.14 for the quarterly Herndon account UMA fee for the third quarter 2014. 6. Disbursement to Merrill Lynch in the amount of $37,185.48 for the quarterly Pimco account UMA fee for the third quarter 2014. 7. Disbursement to Merrill Lynch in the amount of $39,047.45 for the quarterly WAMCO account UMA fee for the third quarter 2014. 8. Disbursement to Merrill Lynch in the amount of $36,688.12 for the quarterly Winslow account UMA fee for the third quarter 2014. Motion by Varney, supported by Wellhausen, to approve the disbursements as presented. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 2. Paul Korell – DROP retirement termination information – discussion Sgt. Paul Korell of the Police Department terminated his DROP retirement as of June 24, 2014. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the disbursements for the regular pension, annuity withdrawal and total DROP account rollover and process the retirement certificate as submitted. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 3. 2013 STD/LTD revised report - discussion The Board received a revised listing of Police and Fire members who were off on short- term/long term disability during 2013 from the City Human Resources/Risk Management Department. Three employees were inadvertently not on the first report back in February 2014. Persons affected by periods of STD/LTD were sent correspondence detailing the preliminary findings according to the report and the amount of time that may be lost net of the sixty-day allowance permitted by Act 345. Total Total Total Adjusted Days Days Lost Ret. Member Name Off credited time Date Dwojakowski, 144 60 84 1/13/94 Dale Pachla, Jonathon 127 60 67 7/15/98 Slezak, 54 54 0 N/A Christopher Motion by Wellhausen, supported by Schwarb, to approve the revised 2013 short-term/long-term disability report with credits and adjustments as listed. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 4. Pension Binder update – discussion The annual Pen-mast reports for active employees were processed as of June 30, 2014. The Board considered the draft summary annual report for the Pension Binder. Motion by Wellhausen, supported by Schwarb, to approve the summary annual report for the pension binder as presented. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 5. Account transfer for August 2014 benefit payments – discussion As of July 14, 2014, the Clearing Account had a balance of $1,455,344.60. An additional $430,000.00 is needed for the August 1, 2014 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 Earnest Partners account, based on the asset allocation targets. Motion by Schwarb, supported by Wellhausen, to approve the transfer of the appropriate amount of funds from the Earnest Partners account, based on the asset allocation targets, to provide for pension benefit payments and other disbursements on August 1, 2014. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 6. Kevin Conlan – partial DROP distribution - discussion Battalion Chief Kevin Conlan of the Fire Department terminated his DROP retirement as of September 7, 2011. He requested a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the disbursement for the partial DROP distribution as presented. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried. 11. TRUSTEE COMMENTS None. 12. ADJOURNMENT Motion by Wellhausen, supported by Schwarb, to adjourn at 3:42 p.m. Ayes: Schwarb, Wellhausen, Varney. Absent: Lamerato and Maleszyk. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary