Police & Fire Retirement Board

Board of Trustees Police gl'f,,d Fire Retirement System Act 1t45 A Pension Plan and Trust Fund 41625 Ryan Rd. Sterling Heights, Michigan 4831 4-3945 REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT IULY 25, 2023 AT 12:00 PM CITY HALL CONFERENCE ROOM 106 40555 UTICA RD STERLING HEIGHTS, MI 48313 586-446-2958 1 President Lamerato called the regular meeting of the Police and Fire Retirement System to order at 12:13pm. 2 Board Members Present: fohn Lamerato, President; fonathan Feil, Secretary; Randall Schwarb, Trustee; Robert Maleszyk, Trustee; and Mary Chavez, City Treasurer. Also present: Tom Michaud, Legal Counsel; Tim Brice, representing The Brice Group/Morgan Stanley Graystone Consulting farrived at 12:1Spm); and Kerrie Dzwonkowski, Pension Administrator. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Schwarb, supported by Feil, to approve the consent agenda as presented. Ayes: All. The motion carried. Motion by Schwarb, supported by Feil, to approve the regular agenda as amended. Ayes: All. The motion carried. 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of fune 75,2023. Motion by Feil, supported by Maleszyk, to approve the consent agenda as presented. Ayes: All. The motion carried. 5. CITIZEN PARTICIPATION There was no Citizen participation. 6. REPORT FROM LEGAL COUNSEL Mr. Michaud commented on business items as they were considered. CONSENT AGENDA 7, CORRESPONDENCE L. Morgan Stanley - market value monthly updates 2. Robbins Geller Rudman & Dowd LLP Regular Meeting Minutes - Iuly 25,2023 Page Two CONSENT AGENDA 8. BILLS AND EXPENDITURES Beginning Balance $4,640.65 6/L123 Additions (1) $5,000.00 Transfer Subtractions [1) $526.36 1. 6/2L Ck# 2151 526.36 MAPERS travel reimb-RS Electronic withdrawals [3) $3,920.38 t. 6/8 L,9L2.5t Payroll [Fed and MI tax included) 2. 6/16 95.36 Gurin & Gurin 3. 6/22 7,912.5L Payroll (Fed and MI tax included) Ending Balance $5,193.91 6/30/23 9 FUNDS MANAGEMENT a. The currentvalue of funds as of fune 30,2023 is detailed below: Clearing account $ L72,548.94 Winslow $ 1L,O44,5t9.39 fanus $ 10,215,500.05 Eagle $ 7,132,864.96 Confluence $ 7,2L4,94L.70 Rothschild $ 73,745,034.73 Earnest $ 24,108,695.50 Aristotle $ 42,575,460.95 Western $ 21,463,404.81 Met West $ 18,213,824.93 Hancock $ 24,534,817.70 WCM $ 32,162,337.73 EIP $ 1,709,990.39 Victory $ 6,494,604.40 American Core $ 15,607,55L.47 MS Cash $ 49,L79.29 Checking account $ 5.193.91 TOTAL FUNDS $ 236,450,570.25 b, The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2023 tax year as of 6/7 /23. The System has received $L3,520,242.00 of the 2022/23 budget of $13,520,242.00. c. Benefit Register Listing as of fuly 1, 2023 from Comerica Bank showing 415 retirees/beneficiaries with a payout for fuly of $1,832,385.49 and a total year-to-date of $16,672,481.66. d. The current Bloomberg Barclay's Government/Credit index for fune 2023 is 4.80o/o. REGULARAGENDA B. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments [bills) L. Disbursement to GRS in the total amount of $250,00 for actuarial services rendered. Motion by Schwarb, supported by Feil, to approve the disbursement as presented. Ayes: All. The motion carried. Regular Meeting Minutes - Iuly 25,2023 Page Three REGULARAGENDA B. BILLS AND EXPENDITURES b. Disbursements to retirees/members other than monthly benefit payments 1. David Cattaneo - partial DROP disbursement David Cattaneo of the Police Department terminated his DROP retirement effective f une 18, 2015. He is requesting a partial DROP disbursement from his DROP account. All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Feil, to approve the disbursements as presented. Ayes: All. The motion carried. 10, BENEFITS & PLAN ADMINISTRATION a. New Business 1. Tricia LaTour - EROP termination - discussion Tricia LaTour of the Police Department terminated her EROP retirement effective July 26, 2023. She is requesting a lump sum of her Annuity Withdrawal and EROP account (B5olo). All required paperwork is on file in the Pension 0ffice. Motion by Schwarb, supported by Feil, to approve the regular straight life pension benefit in the monthly gross amount of $5,665.34, Annuity Withdrawal in the amount of $122,2L3.60, and EROP in the amount of $323,779.78. Ayes: All. The motion carried. 2. Karl Wenninger - passed away - discussion Retiree Karl Wenninger of the Fire Department passed away on fune 2L,2023. Future pension payments have been stopped. There is no surviving spouse. A death certificate has been received. Motion by Feil, supported by Schwarb, to complete the final payment. Ayes: All. The motion carried. 3. Account transfer for August L,2023 benefit payments - discussion As of fuly L3,2023, the Clearing account had a balance of $!72,548.94, An additional $2,500,000.00 is needed for the August L, 2023 pension benefit payments and bills from the Clearing Account. The Brice Group has forwarded an e-mail that the additional amount needed should be taken from the following accounts on or before fuly 26,2023, based on the asset allocation targets: $400,000 - fanus $400,000 - Vanguard Russell $200,000 - Aristotle $300,000 - Earnest Partners $400,000 - fohn Hancock $400,000 - WCM $400,000 - iShares S&P 500 ETF Motion by Feil, supported by Schwarb, to approve the transfer of $2,500,000.00 from the listed accounts. Ayes: All. The motion carried. FUNDS MANAGEMENT - PRESENTATION - COMBINED MEETING WITH GERS: BOATd Members Present fennifer Varney, City Finance and Budget Director; Michael Moore, Trustee. \2:2Bpm - Randall Barton from Pomona gave a presentation on Private Equity 1:03pm - Mathieu Frechette from Partners Group gave a presentation on Private Equity 1:40pm - Derek Schwartz and Matthew Desiderio from CION Ares gave a presentation on Private Credit 2:13pm - William Dodson from Blackstone gave a presentation on Private Credit Regular Meeting Minutes - Iuly 25,2023 Page Four FUNDS MANAGEMENT - PRESENTATION - COMBINED MEETING WITH GERS - cont. After the presentations, the Board members discussed each company. Mr. Brice presented an updated Wealth Strategies Analysis and Asset Allocation. Mr. Schwarb suggested to invest the minimum amount for each company and the rest of the members agreed. Motion by Schwarb, supported by Maleszyk, to approve the revision of the Investment Policy. Ayes: All. The motion carried Motion by Schwarb, supported by Maleszyk, to approve2o/oto invest in Pomona, Partners Group, CION Ares, and Blackstone. Ayes: All. The motion carried. 7L, TRUSTEE COMMENTS Mr. Feil inquired about the procedures regarding a Medical Retirement. Mr. Michaudexplained that either the member or Department head can enter an application. The member has to be evaluated by the Pension Board's physician and their own physician. If there is a disagreement then physicians will chose another physician to do another evaluation. If the physicians conclude that the member is physically or mentally incapacitated to perform regular duties as a police officer or firefighter, the member will be granted a Disability retirement. Mr. Schwarb inquired about members who terminate their employment will they receive their accumulated contributions if they are not vested, have less than 10 years of service credit. Mr. Michaud stated that members who terminate employment are eligible to receive a refund of their contributions. t2. ADIOURNMENT Motion by Lamerato, supported by Schwarb, to adjourn at 2:52pm. Ayes: All. The motion carried; the meeting is hereby adjourned. fonathan Feil Secretary lFlkd