Police & Fire Retirement Board

REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JULY 21, 2016 FIRE DEPARTMENT CONFERENCE ROOM 41625 RYAN ROAD STERLING HEIGHTS, MI 48314 1. Trustee Schwarb called the regular meeting of the Police and Fire Retirement System to order at 3:40 p.m. 2. Board Members Present: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney (excused). Also present: Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Maleszyk, to approve the consent agenda as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. The following items were added to the regular agenda: 8 b 2 – Jeffrey Valken – partial DROP distribution 10 a 12 – Comerica benefit payments update Motion by Wellhausen, supported by Maleszyk, to approve the regular agenda as amended. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. Regular Meeting Minutes – July 21, 2016 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of June 16, 2016. Motion by Maleszyk, supported by Schwarb, to approve the minutes as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 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. Other correspondence received from: 1. Morgan Stanley – market value weekly updates 2. Robbins Geller Rudman & Dowd LLP 3. The Pomerantz Monitor b. Magazines received: 1.Institutional Investor for July 2016 2. Pensions & Investments for June 27 and July 11, 2016. 8. BILLS AND EXPENDITURES Beginning Balance $6,195.81 6/01/16 Subtractions (3) $ 1,044.80 1. 6/28 Check 1999 31.66 AT & T phone bill – 6/16/16 2. 6/08 Check 5374 931.84 Contract Payment Nancy Duyck 3. 6/07 Check 5373 81.30 Contract fee – Gurin & Gurin Electronic withdrawals (6) $3,202.63 1. 6/06 461.54 American Funds IRA contribution 2. 6/08 385.30 IRS Fed. tax w/h 3. 6/15 DD 1001 931.85 Contract Payment Nancy Duyck 4. 6/20 106.82 Michigan St. tax w/h 5. 6/22 385.28 IRS Fed. tax w/h Regular Meeting Minutes – July 21, 2016 Page Three CONSENT AGENDA 8. BILLS AND EXPENDITURES c. Checking Account Summary – cont. 6. 6/29 DD 1002 931.84 Contract Payment Nancy Duyck  Ending Balance $1,948.38 6/30/16 d. Transmittal of Checks There were no checks received this month. 9. FUNDS MANAGEMENT a. The current value of funds as of June 30, 2016 is detailed below: Clearing account $ 5,142,100.37 Intercontinental $ 2,248,148.18 Winslow $ 14,531,574.88 Janus $ 14,832,519.60 Eagle $ 15,368,605.11 Confluence $ 7,427,911.18 Rothschild $ 7,463,342.53 Earnest Partners $ 13,975,881.15 Cambiar $ 13,302,073.89 AIM/Invesco $ 15,829,312.49 Western $ 27,915,203.08 Met West $ 25,696,127.41 London Co. $ 30,153,704.96 MS Cash $ 676.00 Checking account $ 1,948.38 TOTAL FUNDS $ 193,889,129.21 b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2016 tax year as of 7/12/16. The System has received $378,500.00 of the 2016/17 budget of $7,994,747.00, leaving a balance of $7,616,247.00. c. Benefit Register Listing as of July 1, 2016 from Comerica Bank showing 352 retirees/beneficiaries with a payout for July of $1,456,206.88 and a year-to-date of $10,578,534.85. d. The current Merrill Lynch Bond index for June 2016 is 1.82%. Regular Meeting Minutes – July 21, 2016 Page Four CONSENT AGENDA – cont. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business - None. REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) 1. Disbursement to Rodwan Consulting Company in the total amount of $3,000.00 for actuarial services rendered for the quarter ended 6/30/16 ($2,700.00) and the Garon EDRO re-calculation ($300.00). 2. Disbursement to the City of Sterling Heights in the amount of $ $747.36 for accounting services rendered for the quarter ended 6/30/16.  Motion by Maleszyk, supported by Wellhausen, to approve the bills as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. b. Disbursements to retirees/members other than monthly benefit payments 1. James Little – partial DROP distribution James Little of the Fire Department terminated his DROP retirement as of June 10, 2015. 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 as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 2. Jeffrey Valken – partial DROP distribution Jeffrey Valken of the Police Department terminated his DROP retirement as of June 16, 2016. He is requesting a partial DROP distribution from his DROP account. All required paperwork is on file in the Pension Office. Regular Meeting Minutes – July 21, 2016 Page Five REGULAR AGENDA 8. BILLS AND EXPENDITURES b. Disbursements to retirees/members other than monthly benefit payments 2. Jeffrey Valken – partial DROP distribution – cont. Motion by Schwarb, supported by Maleszyk, to approve the disbursement as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 10. BENEFITS & PLAN ADMINISTRATION a. New Business 1. Beverly Zuelch – DROP termination retirement – discussion Officer Beverly Zuelch of the Police Department terminated her DROP retirement on June 17, 2016. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the regular pension disbursement in the gross monthly amount of $4,136.83 as presented, and process the retirement certificate.  Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 2. John Melcher – DROP termination retirement – discussion Officer John Melcher of the Police Department terminated his DROP retirement on June 17, 2016. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the regular pension disbursement in the gross monthly amount of $6,320.98 as presented, and process the retirement certificate. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. Regular Meeting Minutes – July 21, 2016 Page Six REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business – cont. 3. Gregory Hill – DROP termination retirement – discussion Officer Gregory Hill of the Police Department terminated his DROP retirement on June 17, 2016. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the regular pension disbursement in the gross monthly amount of $5,471.12 as presented, and process the retirement certificate. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 4. James Wisniewski – DROP termination retirement – discussion Officer James Wisniewski of the Police Department terminated his DROP retirement on June 17, 2016. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the regular pension disbursement in the gross monthly amount of $5,192.33 as presented, and process the retirement certificate. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 5. Lisa LaBaere – DROP termination retirement – discussion Officer Lisa LaBaere of the Police Department terminated her DROP retirement on June 29, 2016. All required paperwork is on file in the Pension Office.  Motion by Schwarb, supported by Wellhausen, to approve the regular pension disbursement in the gross monthly amount of $3,222.13, subject to the EDRO, as presented, and process the retirement certificate. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. Regular Meeting Minutes – July 21, 2016 Page Seven REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business – cont. 6. Paul LaBaere - EDRO benefit – discussion Paul LaBaere, Alternate Payee of retired Police Officer Lisa LaBaere, has supplied the necessary paperwork to start receiving his monthly benefit and annuity withdrawal, as stipulated in the EDRO, as of August 1, 2016. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the alternate payee retirement benefit for Paul LaBaere as of August 1, 2016 with the gross monthly pension benefit of $1,099.91, under the EDRO straight life option with annuity withdrawal as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 7. Deborah Duke – EDRO benefit – discussion Deborah Duke, Alternate Payee of active Fire Assistant Chief Robert Duke, has supplied the necessary paperwork to start receiving her monthly benefit and annuity withdrawal, as stipulated in the EDRO, as of August 1, 2016. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the alternate payee retirement benefit for Deborah Duke as of August 1, 2016 with the gross monthly pension benefit of $780.67, under the EDRO straight life option with annuity withdrawal, as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 8. Pension Binder - update – discussion 1. Summary Annual Report The annual Pen-mast reports for active employees were processed as of June 30, 2016. The Board considered the draft summary annual report for the Pension Binder. Regular Meeting Minutes – July 21, 2016 Page Eight REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business 8. Pension Binder - update – discussion – cont. Motion by Wellhausen, supported by Schwarb, to approve the summary annual report for the pension binder as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 9. MAPERS 2016 Fall Conference – discussion The Board has received registration information for the MAPERS 2016 Fall Conference. It is scheduled for September 18-20, 2016 at the Grand Hotel on Mackinac Island, MI. Four members are budgeted to attend this conference. Motion by Schwarb, supported by Maleszyk, to register three members for the MAPERS 2016 Fall conference. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. Jennifer Varney will not be attending the conference and John Lamerato is on the MAPERS Board. 10. Paul Backus – survivor benefit – discussion Retired Fire Captain Paul Backus passed away on June 27, 2016. At retirement, Captain Backus chose a Regular retirement with the automatic 60% to his wife, Gail Backus. An application for survivor benefits has been received as well as a copy of Mr. Backus’ death certificate. All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the automatic 60% survivor benefit for Gail Backus, wife/beneficiary of Paul Backus, in the gross monthly amount of $1,435.43 as presented. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. Regular Meeting Minutes – July 21, 2016 Page Nine REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business – cont. 11. Robert Clarey – Termination of Income Withholding Order – discussion  The Board is in receipt of a Termination of Income Withholding Order for Retiree Robert Clarey dated June 30, 2016 from the Macomb County Friend of the Court. It terminates the amount of withholding for Mr. Clarey that is paid for child support in the amount of $761.50 per month. Motion by Schwarb, supported by Wellhausen, to direct Comerica Bank to terminate the withholding amount of $761.50 from Mr. Clarey’s monthly benefit starting August 1, 2016 for the month of July 2016. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried. 12. Comerica new benefits payment system – discussion Comerica Bank updated its benefits payment system and will implement new processing changes. The Board will request that a representative from Comerica attend the August meeting to discuss the new upgrade. 11. TRUSTEE COMMENTS Mr. Wellhausen discussed the electronic procedure of the monthly agenda package. He also made note that three of the Money Managers are over the 5% limit in cash per the Investment Policy. This will be discussed further with the Consultant at the August meeting. 12. ADJOURNMENT Motion by Wellhausen, supported by Maleszyk, to adjourn at 4:00 p.m. Ayes: Wellhausen, Schwarb, Maleszyk. Absent: Lamerato and Varney. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary