Police & Fire Retirement Board

Board of Trustees Folfice affid Fire Retirerm,ent $ystetn Aqt it45 A Pension PIan and Trust Fund 41625 Ryan Rd. Sterling Heights, Michigan 483 1 4-3945 John Lamerato VanOverbeke, Michaud & Timmony, P.C. President Legal counsel Jonathan Feil REGULAR MEETING MINUTES oF THE Secretary STERLING HEIGHTS Randall Schwarb POLICE AND FIRE RETIREMENT Trustee Robert Maleszyk luLY2l,2022 Trustee FIRE DEPARTMENT CONFERENCE ROOM Mary Chavez 4L625 RYAN ROAD City Treasurer STERLING HEIGHTS, MI 48314 586-446-2958 1 President Lamerato called the regular meeting of the Police and Fire Retirement System to order at 3:32pm. 2 Board Members Present:fohn Lamerato, Randall Schwarb, and Mary Chavez. Absent: |onathan Feil fexcused) and Robert Maleszyk [excused). Also present: Tom Michaud, Legal Counsel; Kerrie Dzwonkowski, Pension Administrator. 3 APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Schwarb, supported by Chavez, to approve the consent agenda as presented. Absent: Feil and Maleszyk Ayes: Lamerato, Schwarb, Chavez. The motion carried. Motion by Schwarb, supported by Chavez, to approve the regular agenda as amended. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. Motion by Schwarb, supported by Chavez, to approve the consent agenda as presented. Absent Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular and quarterly meeting of May 19, 2022. Motion by Schwarb, supported by Chavez, to approve the consent agenda as presented. Absent Feil and Maleszyk Ayes: Lamerato, Schwarb, Chavez. The motion carried. 5. CITIZEN PARTICIPATION There was no Citizen participation. 6. REPORT FROM LEGAL COUNSEL Mr. Michaud updated the Board on the money that the State of Michigan has that will be used for underfunded pension systems. The bill is now a law; further information to follow when it becomes available. Review the fune 2L,2022 City Council meeting - Robert Maleszyk attended the meeting to represent the Police and Fire Pension Board. Video time stamp: 5:43 - 16:00 Regular Meeting Minutes - Iuly 2t,2022 Page Two CONSENT AGENDA 7. CORRESPONDENCE L. Morgan Stanley - marketvalue monthly updates 2. Robbins Geller Rudman & Dowd LLP 8. BILLS AND EXPENDITURES a. CheckingAccount Summary Beginning Balance $2,250.57 6/7/22 Additions [1) $5,000.00 Subtractions (1) $754.74 1. 6lL3 Ck# 2131 $754.74 Randall Schwarb - Travel Reimb. Electronic withdrawals (3J $3,824.24 t. 6/9 $1,866.00 Payroll (Fed and MI tax included) 2. 6lL0 $92.24 Contract fee - Gurin & Gurin 3. 6123 $1,866.00 Payroll [Fed and MI tax included) Ending Balance $2,672.79 6/30/22 9. FUNDS MANAGEMENT a. The current value of funds as of fune 30,2022 is detailed below: Clearing account $ 1,414,095.9L Winslow $ 9,421,793.79 Ianus $ 8,409,014.79 Eagle $ 6,979,062.45 Confluence $ 7,133,635.68 Rothschild $ L4,256,964.20 Earnest $ 21,515,084.57 Aristotle $ 38,683,802.55 Western $ 22,062,L96.87 Met West $ 15,882,974.35 Hancock $ 22,727,770.33 WCM $ 27,549,110.05 EIP $ 2,L24,657.63 Victory $ 6,324,064.91 American Core $ 13,693,470.2L MS Cash $ +2,289.37 Checking account $ 2.672.19 TOTAL FUNDS $ 218,222,659.79 b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2022 tax year as of 6/20/22. The System has received $13,738,932.00 of the 202U22 budget of $13,738,932.00. c. Benefit Register Listing as of fuly 1, 2022 from Comerica Bank showing 408 retirees/beneficiaries with a payout for July of $1,785,085.75 and a total year-to-date of $14,680,101.60. d. The current Merrill Lynch Bond index for fune 2A22 is 3.650/o. The current Bloomberg Barclay's Government/Credit index for fune 2022 is 3.690/o. Regular Meeting Minutes - Iuly 2t,2022 Page Three CONSENT AGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business 1. fohn Farah - EROP application Capt. |ohn Farah of the Fire Department has submitted an application for EROP retirement effective lv,ly 7,2022. All required paperwork is on file in the Pension Office, 2. Michael Vohs - EROP application Michael Vohs of the Police Department has submitted an application for EROP retirement effective August 24,2022. All required paperwork is on file in the Pension Office. 3. fon Beaupre - EROP application fon Beaupre of the Police Department has submitted an application for EROP retirement effective August 29,2022. All required paperwork is on file in the Pension Office. 4. Kenneth Mercer - EROP application Kenneth Mercer of the Police Department has submitted an application for EROP retirement effective August L6,2022. All required paperwork is on file in the Pension Office. 5. Paul Muskovin - EROP application Lt. Paul Muskovin of the Police Department has submitted an application for EROP retirement effective fuly 30, 2022. All required paperwork is on file in the Pension Offlce. REGULARAGENDA B. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments [bills) 1. Disbursement to Gabriel, Roeder, Smith & Company in the total amount of $1,500 for the actuarial services. Motion by Chavez, supported by Schwarb, to approve the disbursements as presented. Absent Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. b. Disbursements to retirees/members other than monthly benefit payments L. fames Spence - partial DROP disbursement fames Spence of the Police Department terminated his DROP retirement effective May L7,20L6. He is requesting a partial DROP disbursement from his DROP account. All required paperwork is on file in the Pension Office. 2. |oseph Tharrett - partial DROP disbursement foseph Tharrett of the Police Department terminated his DROP retirement effective September t5,2076. He is requesting a partial DROP disbursement from his DR0P account. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Chavez, to approve the disbursements as presented, Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. Regular Meeting Minutes - Iuly 21,2022 Page Four REGULARAGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business L. Charles Wasil - EROP termination - discussion Lt. Charles Wasil of the Fire Department terminated his EROP retirement effective |une 6, 2022. He is requesting a lump sum of his EROP account [85%). All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Chavez, to approve the EROP regular straight life pension benefit in the gross monthly amount of $6,L22.05 and EROP account in the amount of $308,409.20. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 2. Tim Bade - EROP termination - discussion Battalion Chief Tim Bade of the Fire Department terminated his EROP retirement effective fuly 6, 2022. He is requesting a lump sum of his EROP account (85%) and a lump sum of his Annuity Withdrawal. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Chavez, to approve the EROP regular straight life pension benefit in the gross monthly amount of $7,615.13, EROP account in the amountof $410,972.54, andAnnuityWithdrawal in the amount of $143,422.58. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 3. Edwin Miller - EROP termination - discussion Asst, Chief Edwin Miller of the Fire Department terminated his EROP retirement effective luly 29,2022. He is requesting a lump sum of his EROP account [850/0) and a lump sum of his Annuity Withdrawal. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Chavez, to approve the EROP regular straight life pension benefit in the gross monthly amount of $8,173.13, EROP account (85%) in the amount of 133,788.24, and Annuity Withdrawal in the amount of $197,593.30. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 4. Autumn Fettig - Application to Purchase Service Credit - discussion Autumn Fettig of the Police Department submitted an application to purchase 3 years of prior law enforcement service. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Chavez, to approve the purchase of service credit as presented. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 5. Norman Thomas - passed away - discussion Retiree Norman Thomas of the Police Department passed away on |une 18, 2022. Future pension payments have been stopped. There is no surviving spouse. A death certificate has been requested from the family, Motion by Schwarb, supported by Chavez, to complete the final payment. Absent Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. Regular Meeting Minutes - Iuly 2L,2022 Page Five REGULARAGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business - cont. 6. Larry Crawford - passed away - discussion Retiree Larry Crawford passed away on fune 21, 2022. Future pension payments have been stopped. There is no surviving spouse. A death certificate has been received. Motion by Schwarb, supported by Chavez, to complete the final payment. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 7. Retiree Medical for future retirees - discussion Per the CBAs, Police Officers who were hired between fuly 1,2006 and July 1, 2013 and Firefighters who were hired between fuly L,2007 and |anuary 2, 2013 are responsible for 50%o of their retire medical. Recently, a member retired and he falls under this scenario. The Pension Administrator was contacted by the HR Department to deduct premium share from pension benefit. The Board members discussed and in the next couple months there will be more discussion and a policywill be made for the future. 8. Proposed 2022/2023 Meeting Schedule - discussion The proposed meeting schedule for 2022/2023 fiscal year must be approved and posted. The dates for the regular meeting of the Sterling Heights Police and Fire Retirement System for the 2022/2023 fiscal year are as follows: 1uly27,2022 at 3:30 pm August 18,2022 at 3:30 pm September 15,2022 at 3:30 pm October 20,2022 at 3:30 pm November 17,2022 at 3:30 pm December 15,2022 at 3:30 pm fanuary 79,2023 at 3:P30 pm February 16,2023 at 3:30 pm March L6,2023 at 3:30 pm April20,2023 at3:30 pm May 18, 2023 al3:30 pm June 15,2023 at3:30 pm Motion by Schwarb, supported by Chavez, to approve the meeting dates for the 2022/2023 fiscal year as presented. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 9. MAPERS 2022Fall Conference - discussion The Board has received registration information for the MAPERS Fall2022 Conference, scheduled for Saturday, September 77, 2022 - Tuesday, September 20, 2022 at the Grand Hotel in Mackinac Island, MI. Kerrie Dzwonkowski, Mary Chavez, Robert Maleszyk, and fonathan Feil will be attending the conference. Motion by Schwarb, supported by Chavez, to approve the Board members to attend the MAPERS 2022 Fall Conference, Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. Regular Meeting Minutes - Iuly 2L,2022 Page Six REGULARAGENDA 10. BENEFITS & PLAN ADMINISTRATION a. New Business - cont. 10. Account transfer for August L,2022 benefit payments - discussion As of |uly L8,2022, the Clearing account had a balance of $1,481,303,59. An additional $1,500,000.00 is needed for the August L, 2022 pension benefit payments and bills from the ClearingAccount. The Brice Group has fonryarded an e-mail that the additional amount needed should be taken from the following accounts on or before fuly 26,2022, based on the asset allocation targets: $450,000 - Western $200,000 - wcM $200,000 - Aristotle $200,000 - Earnest Partners $100,000 - fohn Hancock $100,000 - Janus $25,000 - Winslow $135,000 - Confluence $50,000 - Rothschild $40,000 - Cash Account Motion by Chavez, supported by Schwarb, to approve the transfer of $1,500,000.00 from the listed accounts. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried. 71. TRUSTEE COMMENTS Mr. Lamerato stated that the Municipal Stability Board is in discussion of making changes to the "best practices." More information to come in the future. 72. ADJOURNMENT Motion by Chavez, supported by Schwarb, to adjourn at 4:10 pm. Absent: Feil and Maleszyk. Ayes: Lamerato, Schwarb, Chavez. The motion carried; the meeting is hereby adjourned. fonathan Feil Secretary lFlkd