Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 MARCH 19, 2015 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, Schwarb, Maleszyk, Varney. Also present: Larry Langer and John Lapinski represented Buck Consultants, LLC, Mark Buis and Francois Pieterse represented Gabriel Roeder Smith & Company, Sandy Rodwan, Denise Jones and Claudia Scott represented Rodwan Consulting Company; Tom Michaud, Legal Counsel; and 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: All. The motion carried. Motion by Wellhausen, supported by Schwarb, to approve the regular agenda as presented. Ayes: All. The motion carried. Regular Meeting Minutes – March 19, 2015 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of February 19, 2015. 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 February 19, 2015 are hereby approved as presented. 5. CITIZEN PARTICIPATION There was no Citizen participation. 6. REPORT FROM LEGAL COUNSEL No formal legal report was presented. Mr. Michaud commented on items of old business as they were considered. ACTUARIAL SERVICES CANDIDATES - interviews Three companies that answered the Request For Proposal were in attendance for interviews as follows: 1. Buck Consultants, LLC Larry Langer and John Lapinski represented Buck Consultant, LLC at this meeting. They reviewed the proposal in detail and also responded to individual Board Members’ questions. 2. Gabriel Roeder Smith & Company Mark Buis and Francois Pieterse represented Gabriel Roeder Smith & Company at this meeting. They reviewed the proposal in detail and also responded to individual Board Members’ questions. 3. Rodwan Consulting Company Sandy Rodwan, Denise Jones and Claudia Scott represented Rodwan Consulting Company at this meeting. They reviewed the proposal in detail and also responded to individual Board Members’ questions. Regular Meeting Minutes – March 19, 2015 Page Three ACTUARIAL SERVICES CANDIDATES - interviews After discussion, the following motion was considered: Motion by Schwarb, supported by Wellhausen, to retain Rodwan Consulting Company as the Board’s actuary. Ayes: All.  The motion carried. Letters of the Board’s decision will be sent to all three companies. PRESENTATION ANNUAL ACTUARIAL VALUATION REPORT BY RODWAN CONSULTING COMPANY Sandra Rodwan, Denise Jones and Claudia Scott from Rodwan Consulting Company were in attendance to present the 46th annual actuarial report dated December 31, 2014. The report was discussed at length. The Board reviewed the comments by the actuary. After discussion, the following resolution was considered: L 15-3-19-1 RE: APPROVAL OF 46TH ANNUAL ACTUARIAL VALUATION WHEREAS, the Board is in receipt of the 46th Annual Actuarial Valuation, dated December 31, 2014, which has been submitted by the actuary to the Board of Trustees for consideration and approval, and WHEREAS, representatives of the Board’s actuary have appeared before the Board at its March 19, 2015 meeting and presented and reviewed the valuation report with the Board, and WHEREAS, the Board of Trustees has the legal and fiduciary obligation to assure that employer contributions are in accordance with Article 9, Section 24 of the State of Michigan Constitution, and WHEREAS, Michigan Public Act 345 of 1937, as amended, requires the Board of Trustees to certify to the governing body the amount to be contributed by the employer, and WHEREAS, the Board has the duty to (1) to approve or disapprove the Actuarial Valuation dated December 31, 2014, and (2) to certify to the employer-City the amount of employer contribution required for the fiscal year beginning July 1, 2015 (as reflected by the December 31, 2014 Actuarial Valuation), and Regular Meeting Minutes – March 19, 2015 Page Four PRESENTATION ANNUAL ACTUARIAL VALUATION RESOLUTION – cont. WHEREAS, the Board notes that the Sterling Heights Police and Fire Retirement System is 68.4% funded as of the December 31, 2014 valuation, and THEREFORE BE IT RESOLVED, that the Board hereby approves the 46th Annual Actuarial Valuation, dated December 31, 2014, and further RESOLVED, the Board hereby certifies to the employer-City the employer contribution required for the fiscal year beginning July 1, 2015 (as reflected by the December 31, 2014 Actuarial Valuation) in the amount of $7,986,312.00, consisting of the City contribution and the 8% contained in the  Police Command Officers Association contract, the Police Officers Association contract, and the Fire Fighters Association contract, and further RESOLVED, that the recommended transfer in the amount of $1,223,234.00 to the Reserve for Retired Benefit Payments from the Reserve for Employer Contributions be made, and further RESOLVED, that a copy of this resolution and the 46th Annual Actuarial Report, dated December 31, 2014, be forwarded to the employer-City. Motion by Wellhausen, supported by Schwarb, to approve the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. The Board will request that both Sandy Rodwan and Denise Jones be present at future meetings. CONSENT AGENDA 7. CORRESPONDENCE a. Other correspondence received from: 1. Herndon performance update – January 2015 2. Morgan Stanley – market value updates 3. Robbins, Geller, Rudman & Dowd LLP 4. University Conference Services b. Magazines received: 1.Institutional Investor for March 2015 2. Pensions & Investments for February 23rd and March 9, 2015. Regular Meeting Minutes – March 19, 2015 Page Five CONSENT AGENDA - cont. 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 $ 7,619.09 2/01/15 Subtractions (4) $ 2,169.06 1. 2/26 Check 1964 136.00 Office Depot – supplies 2. 2/13 Check 5320 910.73 Contract Payment Nancy Duyck 3. 2/17 Check 5321 211.61 Contract fee – Gurin & Gurin 4. 2/16 Check 5322 910.72 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,601.32 1. 2/04 376.25 IRS Fed. tax w/h 2. 2/17 692.31 IRA contribution  3. 2/18 376.25 IRS Fed. tax w/h 4. 2/20 156.51 Michigan St. tax w/h Ending Balance $ 3,848.71 2/28/15 d. Transmittal of Checks There were no checks received this month. 9. FUNDS MANAGEMENT a. The current value of funds as of February 28, 2015 is detailed below: Clearing account $ 4,530,669.74 Intercontinental $ 6,731,495.56 Winslow $ 16,633,638.75 Janus $ 17,062,993.24 Eagle $ 11,280,189.52 Herndon $ 21,994,299.37 Earnest Partners $ 14,828,101.82 NFJ/Allianz $ 15,964,141.14 AIM/Invesco $ 17,466,647.47 Western $ 27,308,409.18 Met West $ 25,584,771.66 Regular Meeting Minutes – March 19, 2015 Page Six CONSENT AGENDA 9. FUNDS MANAGEMENT a. The current value of funds as of February 28, 2015 is detailed below: – cont. London Co. $ 31,639,067.29 MS Cash $ 1,544.00 Checking account $ 3,848.71 TOTAL FUNDS $ 211,029,817.45 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 3/12/15. The System has received $7,703,804.14 of the 2014/15 budget of $7,953,970.00, leaving a $250,165.86 balance. c. Benefit Register Listing as of March 1, 2015 from Comerica Bank showing 318 retirees/beneficiaries with a payout for March of $1,291,887.10 and a year-to-date of $4,212,358.59. d. The current Merrill Lynch Bond index for February 2015 is 1.99%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. Mark Glazewski – application for retirement Police Office Mark Glazewski has submitted an application for retirement effective April 3, 2015 through the Reciprocal Act. He requested that the Board waive the 120-day rule re: annuity withdrawal. REGULAR AGENDA 8. BILLS AND EXPENDITURES  a. Disbursements other than retiree benefit payments (bills) There were no bills for payment this month. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 2. Kevin Wardrop – DROP retirement termination - discussion Fire Captain Kevin Wardrop of the Fire Department terminated his DROP retirement as of March 16, 2015. He also requested a partial DROP rollover. All required paperwork is on file in the Pension Office. Regular Meeting Minutes – March 19, 2015 Page Seven REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 2. Kevin Wardrop – DROP retirement termination – discussion – cont. Motion by Wellhausen, supported by Schwarb, to approve the retirement disbursement, the partial DROP rollover and process the retirement certificate, pending confirmation of the change in the retirement date. Ayes: All. The motion carried. 3. Jason Cybulski – buyback application and adjusted hire date – discussion Fire Fighter Jason Cybulski submitted an application for buyback of municipal time of 3 months and 1 day in the amount of $7,644.87 through payroll deduction. His adjusted hire date is July 28, 2004. Motion by Wellhausen, supported by Schwarb, to approve the municipal buyback and adjusted hire date as presented. Ayes: All. The motion carried. 11. TRUSTEE COMMENTS None. 12. ADJOURNMENT Motion by Wellhausen, supported by Schwarb, to adjourn at 6:36 p.m. Ayes: All. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary