HomeMy WebLinkAboutEmployees Retirement System September 17, 2024 Minutes OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
MEETING MINUTES
Regular Meeting September 17, 2024
loth Floor Conference Room Tuesday, 9:30 a.m.
The meeting was called to order at 9:31 a.m.
Present: Trustee Bahr, Dedic, Kraus, Parker, Schor, Thomas — 6.
Absent: Ebright, Jeffries, O'Leary (Excused)
Others present: Karen E. Williams, Thomas Lindemann, Human Resources Department, Attorney
Joseph Abood, City Attorney's Office; Attorney Aaron Castle, VanOverbeke, Michaud and Timmony;
Nathan Burk, Asset Consulting Group; Greg Stump, Boomershine Consulting Group; Darren Kalis,
Deferred Compensation Committee.
Mr. Nathan Burk, Asset Consulting Group provided an overview of the Fixed Income Manager Search
to replace Western Asset Management. Mr. Burk recommended three managers for review and
discussion: Janus Henderson Core Plus, Loomis Sayles Core Plus and Aristotle Pacific Capital
LLC/Core Plus.
It was moved by Trustee Kraus and supported by the Trustee Thomas to have all three managers
interview for the Employees' Retirement System.
Adopted by the following vote: 6 - 0
Mr. Burk will coordinate the interview schedule for the investment managers with the Retirement
Office.
Mr. Burk discussed the financial performance of the Employees Retirement System for the period
ending September 30, 2024.
It was moved by Trustee Bahr and supported by Trustee Thomas to approve the Joint Employees'
Retirement System Board and the Police and Fire Retirement System Board minutes of September
17, 2024.
Adopted by the following vote: 6 — 0.
There were no public comments for items on the agenda.
Employees Retirement System September 17, 2024
Meeting Minutes Tuesday, 8:30 a.m.
Page 2
Secretary's Report:
1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers 2 retired. Total active
membership: 427. Total deferred: 68; 2 death(s) Lousie VanNess, died 8/17/2024, age 95,
beneficiary of a retiree; Betty Lockwood, died 7/6/2024, age 87, beneficiary of a retiree;
Refunds made since last regular meeting amounted to $0.00. Retirement allowances for the
month of August 2024 amounted to $2,041,383.38. Total retirement checks printed for ERS
System: 918. Total retirement checks printed for both systems: 1735. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations
orders certified: 0.
It was moved by Trustee Bahr and supported by Trustee Kraus to approve the requests for Regular
Age and Service Retirements:
Linda Fredenburg, (Public Service, UAW), 19 years 1 months of service credit, Age 64,
effective 10/19/2024
Bryce Guenther, (Public Service, UAW) 21 years of service credit, Age 64, effective date
11/16/2024
Adopted by the following vote: 7 — 0.
Applicant #2023-E0621 Request for Reconsideration was tabled to allow the applicant time to provide
additional documents requested by the medical director.
Ms. Williams reported that applicant #2024-E0724 had been sent a duty disability letter with a request
for information.
There were no requests for Non-Duty Disability Retirement.
There were no requests for refund of accumulated contributions.
Karen Williams announced the following educational conferences:
MAPERS Fall Conference will be held September 21 -24, 2024 at the Grand Traverse Report in
Acme, Michigan.
IFEBP Conference, November 10-13, San Diego Convention Center in California.
Karen Williams reported that Trustee Ebright, Trustee Jeffries and Trustee O'Leary requested to be
excused from the September meeting.
Employees Retirement System September 17, 2024
Meeting Minutes Tuesday, 8:30 a.m.
Page 3
It was moved by Trustee Bahr and supported by Trustee Schor to excuse Trustee Ebright, Trustee
Jeffries and Trustee O'Leary from the September meeting.
Adopted by the following vote: 7 -0.
There were no public comments for items not on the agenda.
Ms. Williams provided the following invoice for approval: from Northern Trust, $12,506.45,
Boomershine, $7,397,50.
It was moved by Trustee Bahr and supported by Trustee Thomas to approve the Northern Trust
invoice for the month of September.
Adopted by the following vote: 7 -0.
Greg Stump, Boomershine Consulting Group, provided an overview of the actuarial valuation for
December 31, 2023. Mr. Stump noted that the OPEB Health data has a separate valuation that will
be ready in December 2024. Mr. Stump reviewed the valuation results, demographic summary and
funding outlook.
Mr. Stump reviewed the effects of the actuarial liability, assets and unfunded amounts on the funding
ratio that increased to 58%. Mr. Stump discussed that normal cost, amortization, total city cost and
percentage of payroll deceased. Member contributions increased.
Mr. Stump reviewed that total employees, average age, retirees and average service benefit while the
average salary, and average service increased.
Attorney Castle updated the Employees and Fire Retirement System Board on the transition from the
Core Bond to Core Bond Plus strategy. The paperwork has been finalized and the transition will have
the same contractual terms that were in the previous management company
Ms. Karen Williams provided an update of the Northern Trust web cash management. Ms. Williams
explained that the web cash management was electronic banking. Expenses would be paid through
Northern Trust. Northern Trust also suggested paying retiree payroll through the custodian bank.
Attorney Castle indicated that he was working with Clay Robinson at Northern Trust to prepare the
appropriate the paperwork.
Mayor Schor reported that the Employees' Retirement System received $2.1 million in MILRG State
of Michigan grant monies.
Ms. Williams reported that Human Resources Deputy Director has requested that a Medicare Insert
be included with the retirement application. Attorney Castle read through the letter and did not have
an issue.
Karen Williams provided a preliminary report regarding the Retirement Conference scheduled for
September 12, 2024. Karen Williams provided the Lansing Center estimate of charges. The
Retirement Conference did receive two sponsorships and had an estimated attendance of 187 people
and six vendor tables.
Mr. Darren Kalis of the Deferred Compensation Committee provided a retirement conference report.
He also inquired about the low attendance of active employees.
Ms. Williams reported that some managers inquired to Human Resources if they were required to
release employees to attend the conference.
Trustee Thomas suggested in-service training for active employees that could boost the attendance.
Trustee Kraus recommended putting an emphasis on new employees to learn how to incorporate
deferred compensation and the benefits of compounding interest for retirement.
It was moved by Trustee Bahr and supported by Trustee Kraus to adjourn the Employees'
Retirement System September meeting.
Adopted by the following vote: unanimous.
The meeting ended at 9:19 a.m.
Minutes approved on 10/15/2024.
Desiree Kirkland, Secretary
Employees'Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System