HomeMy WebLinkAbout4-19-2022 Police And Fire Retirement SystemOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting April 19, 2022
10th Floor City Council Conference Room Tuesday, 8:30 a.m.
The Board was called to order at 8:31 a.m.
Present: Trustees Kirkland, Moore, Schor (8:35), Taylor, C. Wilcox, R. Wilcox, Wohlfert, Wood
– 8.
Absent: 0.
Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, Vanoverbeke,
Michaud & Timmony, P.C. (legal counsel); Attorney Abood, City Attorney’s Office.
It was moved by Trustee R. Wilcox and supported by Trustee Kirkland to approve the Official
Minutes of the Police and Fire Retirement System Board meeting of March 15, 2022.
Adopted by the following vote: 7 - 0
There were no public comments for items on the agenda.
Secretary's Report.
0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0
transfers, 0 retired. Total: Active membership: 370. 2 death(s), Walter Barnes, Fire, died
1/23/2022, age 82, spouse to receive 50%; Terrell L. Nadeau, Fire, died 3/14//2022, age 76,
spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00.
Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid
for the month of March 2022, amounted to $3,020,838.77. Total retirement checks printed for
the P&F System: 771. Total retirement checks printed for both systems: 1,710. Domestic
relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations
Order Certified: 0.
It was moved by Trustee C. Wilcox and supported by Trustee Moore to approve the following
applications for regular age and service retirement:
Andrew Johnson (Fire -IAFF), 25 years of service credits, age 51, effective
May 14, 2022. (Sworn Date: 6/9/1997)
Mark E. Nicholson (Fire -IAFF), 25 years of service credits, age 52, effective
May 15,2022. (Sworn Date: 6/9/1997)
Adopted by the following vote: 7 - 0
Regular Meeting April 19, 2022
10th Floor City Council Conference Room Tuesday, 8:30 a.m.
Page 2
Karen Williams reported that applicant #2022-F0315 has been scheduled to see the medical
director.
There were no requests for non-duty disability retirement.
It was moved by Trustee C. Wilcox and supported by Trustee Taylor to approve the following request for
accumulated contributions:
Matthew Hoeksema, Fire, not vested $6,634.68
Adopted by the following vote: 8- 0.
Trustee Terri Taylor provided an oral report of her attendance at the Asset Consulting Group Due
Diligence Trip. Trustee Taylor reported that the group took a tour of the business and provided the group
with a history of Asset Consulting Group. The group met with investment managers from Lazard and
Mondrian. The group also learned of ACG’s community involvement and met with members of the staff.
ACG discussed their regular meetings and oversight of employee function and the company’s in-house
tracking system.
Trustee Moore also attended the due diligence visit and expanded on the discussion regarding SAGE
which is Asset Consulting Group in-house software. The software allows ACG to do custom reports and
daily reconciliations.
Karen Williams updated the Police and Fire Retirement System Board regarding the MAPERS Spring
Conference to be held May 21-24 in Acme, Michigan.
There were no public comments for items not on the agenda.
Karen Williams provided retirement board April invoices (Western Asset, Boomershine and
Asset Consulting Group) for approval in accordance with the authorized signer’s policy.
It was moved by Trustee Wood and supported by Trustee R. Wilcox to approve the Police and
Fire Retirement System invoices.
Adopted by the following vote: 8-0
.
Attorney Aaron Castle provided an overview of the fiduciary liability coverage options: Union
Services, Segal, and Nickel and Saph.
Trustee Wood indicated that she is still waiting for the City Attorney’s legal written opinion on
the trustee’s need for separate fiduciary liability coverage. Trustee Wood would like the legal
opinion on file with the Police and Fire Retirement Board.
Regular Meeting April 19, 2022
10th Floor City Council Conference Room Tuesday, 8:30 a.m.
Page 3
Trustee Taylor inquired about her liability as a former Human Resources director who was
required to serve on the Retirement Board.
Attorney Abood reported that there was liability coverage through the City’s budget policies.
There was no coverage for a breach of fiduciary duty.
Trustee Wood expressed concern regarding urgency to get some coverage for trustees.
Trustee Wohlfert inquired if there was still a conflict with Union Services Agency.
Attorney Castle indicated that there was no conflict with the Police and Fire Retirement System
and noted that Trustee Carrigan was on the Employees’ Retirement System and has since
resigned from that Board.
The Retirement Board discussed preparing a Request for Proposal (RFP) process to get quotes
for coverage.
Attorney Castle indicated that most insurance companies would want to see an agency of record
letter.
Trustee Wood recommended waiving the Request for Proposal (RFP) process to get immediate
coverage and then preparing a formal RFP before the end of the year.
Attorney Abood expressed that when the Board was receiving City Attorney’s advice, the Board
has an extra layer of protection. Attorney Abood stated that if the City Attorney disagreed with
the advice of the Board’s legal counsel, the Board may be liable,
It was moved by Trustee Ryan Wilcox and supported by Trustee Wilcox to waive the Request
for Proposal and have Union Services Agency present a proposal for services to the Board as
soon as possible, preferably at the May Joint meeting. Trustee Wood offered a friendly
amendment that was accepted by Trustee Wilcox that the waiver was because of the legal
jeopardy that the trustees could be in at this time by not being insured.
Adopted by the following vote: 8 - 0
Attorney Castle provided a resolution regarding the divesture of Russian investment. The
resolution was prepared in consultation with Asset Consulting Group and reflected the Board’s
intent to prudently divest the Retirement System from existing investment in Russian companies,
to the extend possible, and to prohibit new investments in Russian companies until further notice.
Regular Meeting April 19, 2022
10th Floor City Council Conference Room Tuesday, 8:30 a.m.
Page 4
It was moved by Trustee Wood and supported by Trustee Schor to adopt a resolution that
reflects the Board’s intent to prudently divest the Police and Fire Retirement System from
existing investment in Russian companies to the extent possible and prohibit new invests in
Russian companies until further notice.
Adopted by the following vote: 8 -0.
Trustee Wood requested that a copy of the approved resolution be provided to the City Council.
Trustee Schor requested that a copy of the approved resolution be provided to the Mayor’s
Office.
Attorney Castle provided an update on the Board’s contract amendments with Tegrit. Tegrit
responded with questions to clarify the amendments.
]Attorney Castle reviewed a draft disability retirement policy and procedures with corresponding
forms that have been recommended by the Special projects sub-committee for adoption by the
Board.
Attorney Castle reviewed the Disability Retirement Policy and procedures that consolidates
several policies regarding the Ordinance provisions, application process, medical review,
income verification, and income offsets regarding the disability retirement. Attorney Castle also
reviewed the forms, disability application, medical evaluation designation, and income
verification.
Attorney Abood recommended language changes in the policies and request that the
authorization for release of records include the City.
It was moved by Trustee Schor and supported by Trustee Kirkland to table the discussion.
The motion failed.
It was moved by Trustee Wood and supported by Trustee C. Wilcox to approve the Disability
Retirement/Re-Examination – Policies and Procedures.
Attorney Castle stated that he would be willing to work with the City Attorney’s office regarding
suggested wording within the policy.
Adopted by the following roll call vote; Kirkland, Moore, Schor, Taylor, C. Wilcox, R. Wilcox,
Wohlfert, Wood.
Attorney Castle discussed the Reciprocal Retirement Act policy. He discussed section 4, 5 and
6 where employees can utilize either the City of Lansing or another municipal reciprocal
retirement act. He discussed the policy and procedures that the Retirement Board would follow.
Regular Meeting April 19, 2022
10th Floor City Council Conference Room Tuesday, 8:30 a.m.
Page 5
Attorney Abood requested language changes to the policy that would be reviewed by the Police
and Fire Retirement Board at the next meeting.
Attorney Castle provided a draft re-statement of the Police and Fire Retirement System
Ordinance. The draft if approved by the Board would need to be forwarded to the City Attorney’s
office for review and then referred to the City Council for approval.
It was moved by Trustee Wood and supported by Trustee R. Wilcox to forward the re-statement
of the Police and Fire Retirement System Ordinance to the City Attorney’s Office for review and
referral to City Council.
Adopted by the following vote: 8 – 0.
Karen Williams reported that Income Verifications for duty disability is due on April 30, 2022,
and six verifications had been received.
Trustee Wohlfert informed the Board that the Employees Retirement System Board would not
have a quorum for the May meeting and recommended changing the date to May 26 at 8:30
a.m.
It was moved by Ryan Wilcox and supported by Trustee Wood to move the May Joint meeting
to May 26, 2022.
Adopted by the following vote: unanimous
Karen Williams reviewed the monthly investment report for the month ending March 31, 2022.
The meeting adjourned at 9:38 am.
Minutes approved on _5/26/2022___
_____________________
Desiree Kirkland, Secretary
Police & Fire Retirement System
______________________
Eric P. Wohlfert, Chairperson
Police & Fire Retirement System