Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 APRIL 16, 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: Scott Lindsay and John Mowrey represented NFJ/Allianz; Tim Brice, representing The Brice Group/Morgan Stanley Graystone Consulting; 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: All. The motion carried. Motion by Wellhausen, supported by Varney, to approve the regular agenda as presented. Ayes: All. The motion carried. Regular Meeting Minutes – April 16, 2015 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of March 19, 2015. Motion by Schwarb, supported by Maleszyk, to approve the minutes as presented. Ayes: All. The motion carried. The motion carried; the minutes of the regular meeting of March 19, 2015 are hereby approved as presented/amended. 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. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental dated March 26, 2015 re: distribution in Intercontinental Real Estate Investment Fund. b. Correspondence from Rodwan dated April 2, 2015 re: continued service. c. Other correspondence received from: 1. Intercontinental’s annual meeting date notice 2. Morgan Stanley – market value updates 3. Robbins, Geller, Rudman & Dowd LLP 4. SEI Investment Co. 5. University Conference Services 6. VOYA Investment Management d. Magazines received: 1.Institutional Investor for April 2015 2. Pensions & Investments for March 23 and April 6, 2015. 8. BILLS AND EXPENDITURES c. Checking Account Summary Beginning Balance $ 3,848.71 3/01/15 Regular Meeting Minutes – April 16, 2015 Page Three CONSENT AGENDA 8. BILLS AND EXPENDITURES c. Checking Account Summary – cont. Additions (1)  1. 3/18 $ 5,000.00 Subtractions (7) $ 2,781.07 1. 3/02 Check 1965 27.44 AT & T phone bill – 2/16/15 2. 3/04 Check 1966 500.00 MAPERS reg. 3. 3/04 Check 1967 325.00 MAPERS reg. 4. 3/27 Check 1968 27.44 AT & T phone bill – 3/16/15 5. 3/13 Check 5323 910.72 Contract Payment Nancy Duyck 6. 3/17 Check 5324 79.74 Contract fee – Gurin & Gurin 7. 3/27 Check 5325 910.73 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,318.42 1. 3/04 376.27 IRS Fed. tax w/h 2. 3/16 461.54 IRA contribution 3. 3/18 376.27 IRS Fed. tax w/h 4. 3/20 104.34 Michigan St. tax w/h Ending Balance $ 4,749.22 3/31/15 d. Transmittal of Checks 1. $500.00 check received from Morgan Stanley for reimbursement of account fee. 9. FUNDS MANAGEMENT a. The current value of funds as of March 31, 2015 is detailed below: Clearing account $ 4,649,792.10 Intercontinental $ 6,731,506.15 Winslow $ 16,324,378.05 Janus $ 16,915,929.42 Eagle $ 11,075,812.29 Herndon $ 21,498,488.42 Earnest Partners $ 14,844,883.43 NFJ/Allianz $ 15,494,876.48 AIM/Invesco $ 17,262,803.06 Western $ 27,382,480.14 Regular Meeting Minutes – April 16, 2015 Page Four CONSENT AGENDA 9. FUNDS MANAGEMENT a. The current value of funds as of March 31, 2015 is detailed below: - cont. - Met West $ 25,605,987.30 London Co. $ 31,134,724.79 MS Cash $ 1,496.00 Checking account $ 4,749.22 TOTAL FUNDS $ 208,927,906.85 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 April 1, 2015 from Comerica Bank showing 319 retirees/beneficiaries with a payout for April of $1,295,680.72 and a year-to-date of $5,508,039.31. d. The current Merrill Lynch Bond index for March 2015 is 1.92%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business No Old Business. 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 first quarter 2015. 2. Disbursement to Comerica Bank in the total amount of $1,870.88 for services rendered to the Clearing and Intercontinental accounts for the first quarter 2015. Motion by Varney, supported by Wellhausen, to approve the bills as presented. Ayes: All. The motion carried. Regular Meeting Minutes – April 16, 2015 Page Five REGULAR AGENDA 8. BILLS AND EXPENDITURES – cont. b. Disbursement to retirees/members other than monthly benefit payments 1. John Opipari – partial DROP distribution - discussion Police Officer John Opipari of the Police Department terminated his DROP retirement as of June 28, 2013. He requested a partial distribution from his DROP account. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the partial DROP distribution as presented. Ayes: All. The motion carried. 9. FUNDS MANAGEMENT e. Performance Report 1. NFJ/Allianz Scott Lindsay and John Mowrey were in attendance to discuss their performance with the Board. They had forwarded a detailed report regarding funds under their management. They reviewed the report and also responded to individual Board  member’s questions. Market value of the funds under management as of December 31, 2014 was $15,462,807.00. The total fund return for the fourth quarter 2014 was -3.9%, ranking in the 70th percentile, as summarized below: 9/14 12/13 12/11 12/10 NFJ/Allianz to 12/14 to 12/14 to 12/14 to 12/14 Total Fund* -3.9/70 -4.6/67 9.2/74 4.1/66 *Ranked against the BofAML International Equity Sample – Total The Board discussed the performance of NFJ. f. Asset allocation Tim Brice was in attendance to discuss asset allocation. The Board discussed with Mr. Brice asset allocation for small/mid cap and international equity. He also discussed alternative investments. Regular Meeting Minutes – April 16, 2015 Page Six REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business 1. Michael Schrettner – DROP retirement termination - discussion Fire Captain Michael Schrettner of the Fire Department terminated his DROP retirement as of March 27, 2015. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement and annuity withdrawal disbursements and process the retirement certificate as presented. Ayes: All. The motion carried. 2. Robert Duke – EDRO resolution – discussion The Board is in receipt of an EDRO for active Assistant Fire Chief Robert Duke. Legal Counsel has approved the EDRO. The following EDRO resolution was considered. L 15-4-16-1 RE: DEBORAH DUKE v. ROBERT DUKE Macomb County Circuit Court Case No. 10-4814-DM WHEREAS, the Board of Trustees is in receipt of an Eligible Domestic Relations Order (EDRO) dated March 26, 2015, wherein Deborah Duke, the Alternate Payee, is awarded certain rights to the retirement benefits of Robert Duke, the Participant, and WHEREAS, the Alternate Payee is entitled to claim a portion of the Participant’s retirement benefit from the Defined Benefit Plan and the Defined Contribution Plan, and  WHEREAS, the payments from the plan to the Alternate Payee of the Participant’s benefits shall begin when the Participant commences benefits from the Retirement System, unless the Alternate Payee elects to receive benefits at any time after the Participant reaches his earliest retirement date, but not later than when the Participant actually commences benefits, and Regular Meeting Minutes – April 16, 2015 Page Seven REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business 2. Robert Duke – EDRO resolution – discussion - cont WHEREAS, the Board’s policy is to require that the cost for the actuary’s calculations are to be borne by the parties to the domestic relations proceedings, and the order provides that the Participant and the Alternate Payee shall be equally responsible for any and all additional costs for actuarial services, and WHEREAS, said matter has been discussed with Legal Counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Retirement System and applicable law including Public Act 46 of 1991 (MCLA 38.1701) as amended, therefore be it RESOLVED, that the Board of Trustees acknowledges receipt of said court order, will pay pension benefits consistent with said order subject to an application being filed by either the Participant or Alternate Payee seeking payment, and further RESOLVED, that upon application of either the Alternate Payee or the Participant, this file be forwarded to the Board’s actuary for calculation of the benefits, and further RESOLVED, that a copy of this resolution be immediately attached as the top sheet of the Participant’s pension file and other appropriate records be kept for the Retirement System relative to this matter, and further RESOLVED, that copies of this resolution be sent to Robert Duke, the Participant; Deborah Duke, the Alternate Payee; and the Board’s actuary. Motion by Wellhausen, supported by Schwarb, to adopt the resolution as presented. Ayes: All. The motion carried; the resolution is hereby adopted. Regular Meeting Minutes – April 16, 2015 Page Eight REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business – cont. 3. Antoinette Fett - Duty disability retirement application and procedures - discussion The Board discussed with Legal Counsel the procedures for a duty disability retirement for Antoinette Fett. The Police Chief had forwarded an application for duty disability for Ms. Fett. The following resolution was considered: R 15-4-16-1 Adopted: April 16, 2015 Re: Disability Retirement Application – Antoinette Fett WHEREAS, the Retirement Board of Trustees is in receipt of an application from Department Head, Michael Reese, Chief of Police, dated April 13, 2015 requesting a duty disability retirement for Antoinette Fett, effective April 28, 2015 and WHEREAS, the Retirement Board of Trustees may retire a member who becomes incapacitated for continued employment upon meeting the requirements of the Retirement System, therefore be it RESOLVED, that the Retirement Board of Trustees acknowledges receipt of said application and directs the processing of said application in accordance with the Retirement System provisions and procedures, and further RESOLVED, that the Retirement Board of Trustees hereby appoints Medical Evaluation Specialists, Inc. (“MES”) as its Medical Director and designated physician to serve on the Medical Committee who shall conduct or coordinate a medical examination of said disability retirement applicant, and further RESOLVED, that the Retirement Board of Trustees directs the Retirement System Administrator to contact MES and Antoinette Fett to complete the necessary documentation and to set up an appointment for Antoinette Fett to be examined, and further RESOLVED, that the Retirement Board of Trustees directs the Retirement System Administrator to forward copies of the signed Medical Authorization to all appropriate physicians and parties and request copies of all medical records and/or incident reports, and further Regular Meeting Minutes – April 16, 2015 Page Nine REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business – cont. 3. Antoinette Fett - Duty disability retirement application and procedures – discussion – cont. RESOLVED, that the Member shall submit all medical records and/or incident reports which the Member desires to be considered to the Board and the Medical Director, and further  RESOLVED, that the Medical Director shall fulfill its duties and report to the Retirement Board of Trustees its findings and certifications, and further RESOLVED, that copies of this resolution and applicable procedures shall be forwarded to Antoinette Fett, MES, Police Chief Michael Reese and all other appropriate parties. Motion by Varney, supported by Wellhausen, to adopt the resolution as presented and receive and file the application for duty disability retirement and start the process. Ayes: All. The motion carried; the resolution is hereby adopted. 11. TRUSTEE COMMENTS None. 12. ADJOURNMENT Motion by Wellhausen, supported by Schwarb, to adjourn at 5:05 p.m. Ayes: All. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary