Police & Fire Retirement Board

Board of Trustees Police and Fire Retirement System Act it45 I A Pension Plan and Trust Fund 41625 Ryan Rd. Sterling Heights, Michigan 4831 4-3945 John Lamerato Vanoverbeke, Michaud & Timmony, p.C. President Legal Counsel Kellv Burgan REGULAR MEETTNG AGENDA Secretary POLTCE AND F|RE RETTREMENT SYSTEM, ACT 345 Randail Schwarb Trustee APRIL 16,2020 AT 3:30 PM, REGULAR MEETING Robert Maleszyk CONFERENCE CALL: CALL-IN INFO: Trustee External Dial-ln: 586-446-2663 (585-446-CONF) Mary Jaganjac lnternal Dial-ln: 2663 (coNF) city Treasuret PIN Code: 446295g "With Executive Order 2020-4, Governor Whitmer declared a statewide state of emergency due to the spread of the novel coronavirus (COVID-19). This is a new strain of coronavirus that had not been previously identified in humans, can easily spread from person to person, and can result in serious illness or death. To mitigate the spread of COVID-19 and to provide essential protections to vulnerable Michiganders and this state's health care system and other critical infrastructure, it is crucial that all Michiganders take steps to limit in-person contact, particularly in the context of large groups. Therefore, this meeting will be conducted via conference call." ln order to dial in, any mobile or stationary telephone system will work. To accomplish accessing the conference call, use the "External Dial-ln" number and wait for the prompt to dial in the "Pin Code", both listed above. 1. President Lamerato called the regular meeting of the Police and Fire Retirement System to order at 3:30pm. 2. Board Members Present: Lamerato, Burgan, Schwarb, Maleszyk, Jaganjac. Also present: Tom Michaud, Legal Counsel; and Kerrie Dzwonkowski, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Burgan, supported by Schwarb, to approve the consent agenda as presented. Ayes: All. The motion carried unanimously. Motion by Burgan, supported by Schwarb, to approve the regular agenda as presented. Ayes: All. The motion carried unanimously. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of Regular meeting of 2l2O/20, SpecialMeeting of 3/26120, and SpecialMeeting ot3/27/2O. Motion by Burgan, supported by Schwarb, to approve the minutes as presented. Ayes: All. The motion carried unanimously. 5. CITIZEN PARTICIPATION There was no Citizen participation. 5, REPORT FROM LEGAL COUNSEL Appreciated efforts to conduct meeting remotely and talked about the executive orders by Bovernor regarding open public meetings. Still available for questions. Regular Meeting Minutes - April t6,2O2O Page Two CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence received from: 1. Morgan Stanley - market value monthly updates 2. Morgan Stanley - correspondence regarding transaction of purchasing investments 3. Robbins Geller Rudman & Dowd LLP 8. BILLS AND EXPENDITURES a. Checking Account Summary Beginning Balance $4,567.48 3/L/20 Additions (1) 55,000.00 Subtractions (1) 5100.00 1. 3lLL Ck 2085 5100.00 MAPERS reg fee Electronicwithdrawals(5) S3,SSg.Z+ L. 3/4 DD 1104 1,295.55 Contract Payment KD 2. 316 87.84 Contract fee - Gurin & Gurin 3. 3/tL 369.30 IRS Fed. Tax w/h 4. 3/LB DD 1105 1,295.65 Contract Payment - KD 5. 3/2O 135.00 Michigan St. tax w/h 6. 3/25 369.30 IRS Fed. Tax w/h Ending Balance 55,913.74 313U20 d. Transmittal of Checks 1. None 9. FUNDS MANAGEMENT a. The current value of funds as of March 3L,2O2O is detailed below: Clearing account s 7L7,763.77 Winslow $ L0,786,576.87 Janus $ 9,840,757.56 Eagle s 7,t45,397.52 Confluence s 5,250,833.05 Rothschild S 11,159,260.53 Earnest s 7L,533,320.90 Aristotle s 25,43O,991.4L western S 23,4L8,763.62 Met West S L8,476,L51.37 Hancock s 19,005,758.54 wcM $ 26,278,062.O3 EIP S 5,367,019.45 Victory s 4,653,964.39 MS Cash s 9,466.42 Checking account 5 5.913.74 TOTAL FUNDS S L79,O30,O71,.L7 b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2019 tax year as of 3lL3/20. The System has received 59,486,359.37 of the 2019120 budget of 59,813,390.00.00, leaving a balance of 327,030.63. Regular Meeting Minutes * April t6,2O2O Page Three CONSENT AGENDA 9, FUNDS MANAGEMENT c. Benefit Register Listing as of April l, 2020 from Comerica Bank showing 392 retirees/beneficiaries with a payout for April of $1,697,5L0.L3 and a total year-to-date of 57,970,299.54. d. The current Merrill Lynch Bond index for March 2A2A is L72%. 10. BENEFITS & PLAN ADMINISTRATION a. Old Business 1. None REGULAR AGENDA 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) 1,. None b. Disbursements to retirees/members other than monthly benefit payments 1.. John Gurnow - DROP distribution - discussion John Gurnow of the Police Department terminated his DROP retirement effective June 16, 2016. He is requesting a DROP distribution from his DROP account. All paperwork is on file in the Pension Office. 2. Anthony Lulek - Annuity Withdrawal distribution - discussion Anthony Lulek of the Fire Department entered EROP effective February 26,2020. His final numbers were sent to the actuary and the final Actuary Sheet was received. He is requesting his annuity withdrawal in the amount of S158,580.19. All paperwork is on file in the Pension Office. Motion by Burgan, supported by Schwarb, to approve the disbursements as presented. Ayes: All. Motion carried. 10. BENEFITS & PLAN ADMINISTRATION a. New Business 1. Lorne Farrell- passed away - discussion Lt. Lorne Farrell, active member of the Fire Department, passed away on March \ 2A2O. He had 17 years, 1" month, and L0 days of service credit. He purchased 6 years of service credit, for a total of 549,986.48. He was divorced effective Apri|24,2017, and his ex-spouse is not awarded a portion of his pension benefits. Effective May 17 , 2O17 , he designated his oldest child as the primary beneficiary and his youngest child the contingent beneficiary. Table the motion, still waiting on final decision of duty related vs. non duty related death. Discussion on refund of service credit. Tom will draft up a policy and further discussion at next meeting. Motion Burgan supported by schwarb to further discuss at next meeting. 2. Patrick Silver - passed away - discussion Capt. Patrick Silver retired from the Fire Department effective January 17,2003. He passed away April 4,2020. He will receive a final payment for the partial payment of April. At retirement, Capt. Silver chose a Regular retirement with the automatic 60% surviving spouse benefit to his wife, Karen Silver. An application for survivor benefits has been received. All required paperwork is on file in the Pension Office. Motion by Burgan, supported by Schwarb, to approve the final payment and the surviving spouse benefit. Ayes: All. Motion carried Regular Meeting Minutes - April 16,2A20 Page Four REGULAR AGENDA 10. BENEFITS & PLAN ADMINISTRATION b. New Business - cont. 3. Shawn Misener - EROP termination * discussion Capt. Shawn Misener of the Fire Department terminated his EROP effective March 27,2020. He is requesting his annuity withdrawal and EROP distribution (85%). All required paperwork is on file in the Pension Office. Motion by Burgan, supported by Schwarb, to approve the EROP regular straight life pension benefit in the gross monthly amount of $6,975.1,3 and annuity withdrawal in the amount of S136,484.02 as presented. Ayes: AIl. Motioned carried. 4. Raymond (Ryan) O'Neil- resigned position - discussion Raymond O'Neil of the Fire Department resigned his position effective March 30, 2020. He is requesting his accumulated contributions. Motion by Burgan, supported by Schwarb, to approve the refund of contributions as presented. Ayes: All. Motion carried. 5. Comerica Fees - discussion Mary Jaganjac discussed the quarterly fees with Comerica. There was an agreement to decrease some of the fees. See attached document. There was no motion made. 6. Account Transfer for May benefit payments * discussion As of April !3,2020 the Clearing Account had a balance of 5717,763.77. An additional S1,700,000.00 is needed for the May 1, 2020 pension benefit payments and bllls from the Clearing Account. The Brice Group has forwarded an e-mail that the additional amount needed should be taken from the accounts listed below on or before Apri|24,2020, based on the asset allocation targets. Western $1,000,000.00 Metwest s700,000.00 Motion by Burgan, supported by Schwarb, to approve the transfer of $1,700,000.00 from the listed accounts, based on the asset allocation targets, to provide for pension benefit payments and other disbursements on May 1, 2020. Ayes: All. The motion carried unanimously. 11. TRUSTEE COMMENTS Mr. Michaud suggested we look into a video conference instead of a phone conference. The Board agreed. 12. ADJOURNMENT Motion by Schwarb, supported by Jaganjac, to adjourn at 4:20 pm. Ayes: All. The motion carried unanimously. The meeting is hereby adjourned, 4GAaS*ganil<d Kelly Burgan Secretary KB/kd