HomeMy WebLinkAbout7-19-2022 Employees Retirement SystemOFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES CITY OF LANSING
EMPLOYEES’ RETIREMENT SYSTEM
Regular Meeting July 19, 2022
10th Floor City Council Conference Room Tuesday, 9:30 a.m.
The Board was called to order at 9:30 a.m.
Present: ERS: Bahr, Dedic, Ebright, Garza, Kraus, D. Parker, Sanchez-Gazella, Schor –
8
Absent: Kirkland (excused)
Others: Karen E. Williams, Evangelina Hernandez Human Resources Department;
Attorney Aaron Castle, VanOverbeke, Michaud & Timmony, P.C., attended remotely.
It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to approve
the Official Minutes of the Employees’ Retirement System Board of June 21, 2022.
Adopted by the following vote: 8 – 0
Secretary’s Report:
5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total
active membership: 492. Total deferred: 73. 4 death(s) Howard Gerald
McCaffery, (Public Service - Exempt, retired 1/5/1993, died 5/23/2022, age 82,
Spouse to receive 100%; James Allen Nobach, (Parks, died, May 2, 2022, age
65, no beneficiary; Linda Rossman, (District Court), retired 2/28/2002, died
6/14/2022, age 71, no beneficiary; Martha A. Sudberry, died 5/21/2022, age 92,
beneficiary of UAW retiree. Refunds made since the last regular meeting
amounted to $0.00. Retirement allowances paid for the month of June 2022,
amounted to $2,031,961.44. Total retirement checks printed for the ERS
System: 941. Total Retirement checks printed for both systems: 1717. Eligible
domestic relations orders received: 0. Domestic relations orders pending: 0.
Eligible domestic relations orders certified: 0
It was moved by Trustee Bahr and supported by Trustee Ebright to approve the following
Request for Regular Age and Service Retirement:
Joseph Anderson, (Public Service – UAW), 17 years, 3 months of service credits,
age 58, effective 8/5/2022.
Melissa L. Ouderkirk (Police/Civilian – Teamster). 25 years of service credits,
age 50, effective 9/8/2022.
Adopted by the following vote: 8 – 0
Meeting Minutes July 19, 2022
Page 2 Tuesday, 9:30 a.m.
There were no public comments.
Ms. Williams reported the Applicant #2021-E1108 had seen the medical director. The
medical report has been received and forwarded to the disability subcommittee. The
disability subcommittee wanted additional time to review the report.
There were no requests for non-duty disability.
There were no requests for refund of accumulated contributions.
Ms. Williams distributed and reported information for upcoming events:
MAPERS Fall Conference, September 17-20, Mackinaw Island, Michigan
68th Annual IFEBP Conference, October 23-26, Las Vegas, Nevada
Ms. Williams directed members to review agendas, registration forms, and hotels for the
conferences. Ms. Williams informed them to provide their arrival and departure dates for
each event they want to attend to Evangelina Hernandez.
Ms. Williams reported that Trustee Kirkland contacted the Retirement Office and
requested to be excused from the July meeting. Trustee Kirkland is ex-officio, and no
vote was needed to excuse her.
Ms. Williams provided retirement board July invoices (ACG, Northern Trust, Segal) for
approval in accordance with the authorized signer’s policy. She also reported that a notice
from Asset Consulting Group reporting a quarterly fee increase from ACG invoice from
April 1, 2022, through March 31, 2023 (the Michigan Treasury bulletin) for the inflation
rate of 2022. ACG increased their rate by 3.3% as described per the contract.
It was moved by Trustee Ebright and supported by Trustee Dedic to approve the July
Invoices of the Employees’ Retirement System Board.
Adopted by the following vote: 8 – 0
Attorney Castle reported that he met with City Attorney Abood, HR Director and Employee
and Labor Relations to discuss the draft Disability Retirement/Re-Examination Policy.
Based upon discussion with that group and discussion that took place with the Board’s
Disability committee, Attorney Castle opined that it was necessary to refer the matter back
to the Special Projects Committee for further review.
Attorney Castle reviewed an updated version of the Reciprocal Retirement Policy that
clarified some language.
Meeting Minutes July 19, 2022
Page 3 Tuesday, 9:30 a.m.
It was moved by Trustee Dedic and supported by Trustee Bahr to approve Reciprocal
Retirement Policy proposal.
Adopted by the following vote: 8 - 0
Attorney Castle provided a legislative update of House Bill 5783. The bill was passed by
the Michigan House of Representative and Senate on July 1 and was ordered enrolled
as of that date. HB 5783 is a general appropriations bill that includes the creation of a
grant program supporting local defined benefit retirement systems. The grant programs
include criteria that the grant award payment must be in addition to a local unit’s
actuarially determined contribution as of 12/31/2021 and must not be used to meet the
actuarially determined contribution, and that local units must attest via an affidavit.
Attorney Castle stated that HB5783 provides for a one-time appropriation of up to 750
million to the Department of Treasury to establish and operate a grant program for deposit
into a local unit’s retirement system. Grant awards would be for systems that are under
60% or 170 million, wherever is less. Attorney Castle reviewed the conditions that would
need to be implemented upon receipt of a grant award that include those contractual
benefits be 100% prefunded, retirement system’s discount rate must remain or be below
7%, the system must adopt the most current mortality tables, the local unit would be
subject to corrective action plan monitoring.
Trustee Bahr inquired about how the money would be distributed.
Attorney Castle indicated that the Michigan Department of Treasury would create the
application policy. The City of Lansing would need to apply for the grant.
Trustee Dedic inquired if the monies would be allocated after all applications are received
or on a first come and first-serve basis.
Attorney Castle that until the Michigan Department of Treasury creates the process, he
could not be certain how the monies would be allocated. Attorney Castle believed that
there would be a window for applications to be receive before the allocation.
Trustee Schor indicated that the City of Lansing would apply, and the money would be
used in addition to actuarially determine retirement contribution. The grant would reduce
the retirement system liability and may reduce future contributions.
Ms. Williams indicated that Larry Fumarolo, our Northern Trust account manager, has left
the company. In May, he provided an overview of services offered by Northern Trust and
invoices being paid through Northern Trust and discussed employee and employer
contributions submitted to the bank. The Retirement Office would reach out to Northern
Trust to have a representative attend the next meeting.
Meeting Minutes July 19, 2022
Page 4 Tuesday, 9:30 a.m.
Ms. Williams reviewed the Monthly Investment Report for the month ending June 30,
2022.
It was moved by Trustee Kraus and supported by Trustee Bahr to adjourn the July
Employees’ Retirement System Board meeting.
Adopted by the following vote: 8 - 0
The meeting ended at 9:56 a.m.
Minutes approved on 8/16/2022
________________________
Desiree Kirkland, Secretary
Employees’ Retirement System
_____________________________
Dennis R. Parker, Chairperson
Employees’ Retirement System