Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 SEPTEMBER 17, 2015 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48314 1. The regular meeting of the Police and Fire Retirement System was called to order by President Lamerato at 3:35 p.m. 2. Board Members Present: Lamerato, Wellhausen, Schwarb, Maleszyk, Varney arrived at 3:50 pm). Also present: 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 Schwarb, to approve the consent agenda as presented. Ayes: All. The motion carried. The following item was added to the regular agenda: 10 a 3 – Jason Cybulski – refund of contributions – discussion Motion by Wellhausen, supported by Schwarb, to approve the regular agenda as amended. Ayes: All. The motion carried. Regular Meeting Minutes – September 17, 2015 Page Two 4. APPROVAL OF MINUTES One correction was made to the draft minutes of the regular meeting of August 20, 2015. The second sentence of Item 9f3 was removed. Motion by Schwarb, supported by Maleszyk, to approve the minutes as amended. Ayes: All. The motion carried; the minutes of the regular meeting of August 20, 2015 are hereby approved as 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 new business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental dated August 27, 2015 re: distribution in Intercontinental Real Estate Investment Fund III. b. Other correspondence received from: 1. Morgan Stanley – market value weekly updates 2. The Pomerantz Monitor newsletter 3. Voya Investment Management update c. Magazines received: 1.Institutional Investor for September 2015 2. Pensions & Investments for August 24 and September 7, 2015. 8. BILLS AND EXPENDITURES c. Checking Account Summary Beginning Balance 3,434.28 8/01/15 Additions (1) 1. 8/07 $ 5,000.00 Subtractions (7) $ 3,113.28 1. 8/24 Check 1979 500.00 MAPERS reg. 2. 8/24 Check 1980 500.00 MAPERS reg. Regular Meeting Minutes – September 17, 2015 Page Three CONSENT AGENDA 8. BILLS AND EXPENDITURES c. Checking Account Summary – cont. 3. 8/24 Check 1981 100.00 MAPERS reg.  4. 8/27 Check 1983 29.54 AT & T phone bill – 8/16/15 5. 8/14 Check 5340 932.05 Contract Payment Nancy Duyck 6. 8/18 Check 5341 119.64 Contract fee – Gurin & Gurin 7. 8/28 Check 5342 932.05 Contract Payment Nancy Duyck Electronic withdrawals (4) $1,621.48 1. 8/05 385.10 IRS Fed. tax w/h 2. 8/17 692.31 IRA contribution 3. 8/19 385.08 IRS Fed. tax w/h 4. 8/20 158.99 Michigan St. tax w/h Ending Balance $3,699.52 8/31/15 d. Transmittal of Checks 1. There were no checks received this month. 9. FUNDS MANAGEMENT a. The current value of funds as of August 31, 2015 is detailed below: Clearing account $ 3,878,600.05 Intercontinental $ 5,467,539.30 Winslow $ 15,210,954.29 Janus $ 15,868,602.69 Eagle $ 15,281,696.72 Herndon $ 14,853,402.26 Earnest Partners $ 13,489,985.10 NFJ/Allianz $ 14,288,527.27 AIM/Invesco $ 15,901,128.65 Western $ 26,971,160.86 Met West $ 25,148,614.32 London Co. $ 29,042,220.73 MS Cash $ 695.00 Checking account $ 3,699.52 TOTAL FUNDS $ 195,406,826.76 Regular Meeting Minutes – September 17, 2015 Page Four CONSENT AGENDA 9. FUNDS MANAGEMENT – cont. b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2015 tax year as of 9/14/15. The System has received $6,898,300.00 of the 2015/16 budget of $7,986,312.00, leaving a $1,088,012.00 balance. c. Benefit Register Listing as of September 1, 2015 from Comerica Bank showing 335 retirees/beneficiaries with a payout for September of $1,399,282.10 and a year-to-date of $13,987,848.01. d. The current Merrill Lynch Bond index for August 2015 is 2.27%. 10. BENEFITS & PLAN ADMINISTRATION  a. Old Business 1. None. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) 1. Disbursement to Software Systems & Products Corporation in the amount of $427.50 for custom modifications to the Membership Tracking Database. Motion by Schwarb, supported by Wellhausen, to approve the bill as presented. Ayes: All. The motion carried. b. Disbursements to retirees/members other than monthly benefit payments 1. Jason Seitz - refund of contributions Fire Fighter Jason Seitz was hired on March 16, 2015 and terminated employment on August 5, 2015. He has requested a refund of his contributions and interest. Walt Hessell has calculated the amount of the refund. All required paperwork is on file in the Pension Office. Regular Meeting Minutes - September 17, 2015 Page Five REGULAR AGENDA 8. BILLS AND EXPENDITURES b. Disbursements to retirees/members other than monthly benefit payments - cont. 2. Todd Rotter – partial DROP distribution – discussion Todd Rotter of the Fire Department terminated his DROP retirement as of September 4, 2014. He is requesting a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. 3. David Vinson – partial DROP distribution – discussion David Vinson of the Police Department terminated his DROP retirement as of June 18, 2008. He is requesting a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the disbursements as presented. Ayes: All. The motion carried. 9. FUNDS MANAGEMENT e. International equity manager candidates - The Brice Group Tim Brice reviewed with the Board the International Equity Manager candidates. Motion by Wellhausen, supported by Schwarb, to interview Campiar Investors and Causeway Capital Management and change the date for the October meeting from October 15th to October 8th. Ayes: All. The motion carried. Regular Meeting Minutes – September 17, 2015 Page Six REGULAR AGENDA – cont. 10. BENEFITS & PLAN ADMINISTRATION a. New Business 1. James Bryant – DROP retirement termination – discussion Sgt. James Bryant of the Police Department terminated his DROP retirement on September 11, 2015. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the pension disbursement as presented and process the retirement certificate. Ayes: All. The motion carried. 2. Antoinette Fett – duty disability retirement – discussion The medical director reports have been received for the duty disability retirement. Mr. Michaud requested that the Board go into closed session to discuss the Medical Director reports. Motion by Schwarb, supported by Varney to go into closed session. Ayes: Lamerato, Wellhausen, Schwarb, Maleszyk, Varney. The motion carried. The Board exited closed session. After discussion the following resolution was considered: R 15-9-17-1  Re: Disability Retirement of Antoinette Fett WHEREAS, the Retirement Board of Trustees is vested with the authority and fiduciary responsibility for the proper administration, management and operation of the Retirement System, and WHEREAS, the Board, at its April 16, 2015 meeting, acknowledged receipt of Antoinette Fett’s application for disability retirement, and resolved to process said application, and Regular Meeting Minutes – September 17, 2015 Page Seven REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business 2. Antoinette Fett – duty disability retirement – discussion – cont. WHEREAS, Antoinette Fett has been examined by the Medical Director, and WHEREAS, the Board is in receipt of the Medical Director’s report and certification, dated May 20, 2015 and July 20, 2015 finding that Antoinette Fett is (1) mentally or totally physically incapacitated for duty in the employ of his/her last employer as a police officer or fire fighter in the service of the City, (2) that the incapacity will probably be permanent, and (3) that the member should be retired, and WHEREAS, Antoinette Fett has a date of birth of December 4, 1967 and has been credited with 22 years, 1 month and 22 days of service credit, and WHEREAS, the Retirement Board of Trustees has found the disability to be the result of a personal injury or disease occurring as the natural and proximate result of causes arising out of and in the course of the member's actual performance of duty in the employ of the City of Sterling Heights, and WHEREAS, the Board of Trustees has reviewed and discussed the evidence presented, and THEREFORE BE IT RESOLVED, that the Retirement Board of Trustees hereby grants Antoinette Fett a duty disability retirement, effective April 28, 2015, and further RESOLVED, that the benefits be paid consistent with and subject to the Retirement System provisions, and further RESOLVED, that a copy of this resolution be provided to Antoinette Fett and all other appropriate parties. Motion by Schwarb, supported by Wellhausen, to approve the resolution as presented. Ayes: All. The motion carried. Regular Meeting Minutes – September 17, 2015 Page Eight REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business – cont. 3. Jason Cybulski – refund of contributions – discussion Former vested Fire Fighter Jason Cybulski has requested a refund of contributions thereby forfeiting his right to a deferred pension benefit. Mr. Michaud stated that a waiver and a request for refund be filed by Mr. Cybulski and his ex-wife, Danielle Cybulski. Motion by Wellhausen, supported by Schwarb, to receive and file the request for refund. Ayes: All. The motion carried. 11. TRUSTEE COMMENTS Mr. Lamerato requested that the Board investigate international mutual funds and their fees. Mr. Brice will provide some information at the next meeting. 12. ADJOURNMENT Motion by Wellhausen, supported by Schwarb, to adjourn at 5:19 p.m. Ayes: All. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary