Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 SEPTEMBER 18, 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 President Lamerato at 3:30 p.m. 2. Board Members present: Lamerato, Wellhausen, Maleszyk, Schwarb, Varney. Also present: Tim Brice and Rebecca Wolfe, representing The Brice Group; Mark DeVaul, representing The London Company; JP Galvin, Scott Rodes; and Vere Gaynor representing Bahl & Gaynor; John Gomez, representing Santa Barbara; Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Varney, supported by Schwarb, to approve the consent agenda as presented. Ayes: All. The motion carried. Motion by Varney, supported by Schwarb, to amend the agenda to add Discussion with Tim Brice after Citizen Participation. Ayes: All. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of August 21, 2014. Motion by Varney, supported by Schwarb, to approve the minutes as presented. Ayes: All. The motion carried. The motion carried; the minutes of the regular meeting of August 21, 2014 are hereby approved. 5. CITIZEN PARTICIPATION Members of the General Employees Retirement System and Walt Hessell were in attendance to hear the money manager presentations. 9. FUNDS MANAGEMENT Tim Brice discussed with the Board the transition from Merrill Lynch Consulting to Morgan Stanley/Graystone Consulting and responded to questions from Board Members. e. Large Cap Core Equity Manager presentations 1. The London Company Mark DeVaul represented The London Company at this meeting. He presented a detailed report regarding their large cap core equity investment philosophy and style. He reviewed the written report in detail and also responded to individual Board Members’ questions. 2. Bahl & Gaynor JP Galvin, Scott Rodes and Vere Gaynor represented Bahl & Gaynor at this meeting. They presented a detailed report regarding their large cap core equity investment philosophy and style. They reviewed the written report in detail and also responded to individual Board Members’ questions. 3. Santa Barbara John Gomez represented Santa Barbara at this meeting. He presented a detailed report regarding their large cap core equity investment philosophy and style. He reviewed the written report in detail and also responded to individual Board Members’ questions. 6. REPORT FROM LEGAL COUNSEL No formal legal report was presented. The Board briefly discussed the RFP for actuarial services. Motion by Varney, supported by Wellhausen, to authorize Legal Counsel to proceed with the RFP process for actuarial services with an additional question regarding GASB 67 reporting. All perspective applicants must return their proposals within 21 days. Ayes: All. The motion carried. Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental dated August 13, 2014 re: distribution in U.S. REIF Fund. b. Correspondence from Intercontinental dated August 27, 2014 re: distribution in Intercontinental Real Estate Investment Fund III. c. Other correspondence received from: 1. Brice Group – market value updates 2. NCPERS 3. Pomerantz LLP 4. Voya d. Magazines received: 1. Institutional Investor for September 2014 2. Pensions & Investments for September 1 and 15, 2014. 8. BILLS AND EXPENDITURES c. Checking Account Summary Beginning Balance $5,084.30 8/01/14 Additions (1) 1. 8/19 $5,000.00 Subtractions (5) $2,841.86 1. 8/29 Check 1951 33.23 AT & T phone bill – 8/16/14 2. 8/01 Check 5300 910.14 Contract Payment Nancy Duyck 3. 8/04 Check 5301 78.20 Contract fee – Gurin & Gurin 4. 8/15 Check 5302 910.14 Contract Payment Nancy Duyck 5. 8/29 Check 5303 910.15 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,319.58 1. 8/04 461.54 IRA contribution 2. 8/06 376.85 IRS Fed. tax w/h 3. 8/20 104.34 Michigan St. tax w/h 4. 8/20 376.85 IRS Fed. tax w/ Ending Balance $ 5,922.86 8/31/14 d. Transmittal of Checks 1. $64.63 received from NovaGold Resources Inc. as a share in a settlement of a securities litigation. 2. $221.00 received from Lisa Cairns (Rotter) for one-half of the fee for an EDRO actuarial calculation. 3. $221.00 received from Todd Rotter for one-half of the fee for an EDRO actuarial calculation. 9. FUNDS MANAGEMENT a. The current value of funds as of August 31, 2014 is detailed below: Clearing $ 1,012,390.29 account Intercontinental $ 12,171,277.07 Winslow $ 24,535,690.77 Janus $ 24,266,211.06 Eagle $ 24,633,751.05 Herndon $ 24,332,237.52 Earnest Partners $ 13,927,450.75 NFJ/Allianz $ 17,139,530.25 AIM/Invesco $ 17,479,266.52 Wamco $ 23,679,304.55 Pimco $ 22,323,106.92 Checking $ 5,922.86 account TOTAL $ 205,506,139.61 FUNDS b. 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 9/12/14. The System has received $6,835,600.00 of the 2014/15 budget of $7,953,970.00, leaving a $1,118,370.00 balance. c. Benefit Register Listing as of September 1, 2014 from Comerica Bank showing 309 retirees/beneficiaries with a payout for September of $1,239,449.42 and a year-to-date of $12,443,520.40. d. The current Merrill Lynch Bond index for August 2014 is 2.05%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Abel/Noser Reports for July 2014 Abel/Noser has supplied the July 2014 report. 2. 2014 Annual verifications The 2014 annual verifications were mailed out on August 26, 2014 to all retirees/beneficiaries receiving benefits from the Retirement System. The verifications are due back to the Pension Office by September 30, 2014. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) There were no bills for payment this month. b. Disbursements to retirees/members other than monthly benefit payments 1. David J. Smith - refund of contributions Fire Fighter David J. Smith was hired on September 11, 2011 and was laid off on June 30, 2012. Mr. Smith has requested a refund of his contributions and interest. Walt Hessell has calculated the amount of the refund in the amount of $4,275.80. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the refund disbursement as presented. Ayes: All. The motion carried. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 3. Richard Boughton – DROP retirement termination information – discussion Battalion Chief Richard Boughton of the Fire Department terminated his DROP retirement as of September 4, 2014. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the disbursements for the regular pension and annuity withdrawal and process the retirement certificate as submitted. Ayes: All. The motion carried. 4. David Gonczar – DROP retirement termination information – discussion Battalion Chief David Gonczar of the Fire Department terminated his DROP retirement as of September 4, 2014. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the disbursements for the regular pension, annuity withdrawal and total DROP account rollover and process the retirement certificate as submitted. Ayes: All. The motion carried. 5. Christopher Martin – DROP retirement termination information – discussion Chief Christopher Martin of the Fire Department terminated his DROP retirement as of September 4, 2014. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the disbursements for the regular pension and annuity withdrawal and process the retirement certificate as submitted. Ayes: All. The motion carried. 6. Todd Rotter – DROP retirement termination information – discussion Captain Todd Rotter of the Fire Department terminated his DROP retirement as of September 4, 2014. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the disbursement for the regular pension and process the retirement certificate as submitted. Ayes: All. The motion carried. 7. Kevin Ernst – DROP retirement termination information – discussion Officer Kevin Ernst of the Police Department terminated his DROP retirement as of September 5, 2014. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the disbursement for the regular pension and process the retirement certificate as submitted. Ayes: All. The motion carried. 8. Kevin Wagner – DROP retirement termination information – discussion Officer Kevin Wagner of the Police Department terminated his DROP retirement as of September 5, 2014. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the disbursement for the regular pension and process the retirement certificate as submitted. Ayes: All. The motion carried. 9. Glenn French – total DROP distribution – discussion Retired Sergeant Glenn French of the Police Department terminated his DROP retirement as of June 28, 2013. He requested a distribution of the total DROP balance account. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the disbursement for the total DROP balance as submitted. Ayes: All. The motion carried. 11. TRUSTEE COMMENTS Wellhausen would like a breakdown of the Merrill Lynch fees that went to The Brice Group. Motion by Schwarb, supported by Maleszyk, to have the President request the information from the Brice Group to be furnished within the next two weeks. Ayes: All. Motion carried. 12. ADJOURNMENT Motion by Lamerato, supported by Schwarb, to adjourn at 6:10 p.m. Ayes: All. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary