HomeMy WebLinkAboutPOLICE AND FIRE RETIREMENT MINUTES 1990 Police & Fire Retirement System
Minutes - 1990
. f ti
RECD. LANSING
CITE' CLERK
BY:
OFFIC IDECRZffE S§#F THE .BOARD OF TRUSTEES
LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for December December 11 , 1990
8tii door, Conference Room Tuesday 8 : 31 A.M.
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was , called to
order by the Chairperson, Jack Cushman, at 8 : 31 A.M.
Present : Trustee Benavides , Barkyoumb , Cushman, Goodin, Hunnell ,
Luzynski, and McKane - 7
Absent : Trustee McKenzie - 1
Present : Stephen W. Duarte, Secretary; Ruby White, Lesley
Seldenright and Doug Rubley, Finance Dept. ; Melvin
McWilliams ; Chief Assist. City Attorney; Ed Piloske,
Internal Audit; Daniel Jacque, Police Dept . and John
Richards , Police Dept . ; and Hal Rossen & Jo Ann .Shanley,
• Prudential-Bache
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the minutes of November 13 , 1990 , be approved.
Adopted by the following vote : Unanimously.
The Secretary reports 3 new members , 0 reinstatements , 0 refunds
and 1 retired. Total Membership: 554 . Refunds made since the last
regular meeting amounted to $ . 00 . Retirement allowances paid for
the month of November 1990 , amounted to $512 , 657 . 64 total
retirement checks printed for P&F System 378, total retirement
checks printed for all three systems 827 .
Public Comments for items on the agenda. John Richards inquired as
to who made the request for Daniel Jacque to be placed on
disability retirement and Mr. Duarte stated that Mr. Jacque
personally requested the disability. In addition, Mr. Richards
inquired as to the item concerning the status report on Trustee
McKenzie - Military Leave. Mr. Duarte, Secretary, advised this was
only in relationship to Mr. McKenzie ` s position as Trustee on the
Retirement Board.
Discussion was held re: Request for Duty Disability and medical
report on Daniel J. Jacque, Police Department.
Trustee Benavides arrived at 8 : 42 R.M.
Discussion was held re: Request for Duty Disability and medical
report on Terry L. Nadeau, Fire Department.
Melvin McWilliams , Chief Assist. City Attorney, advised that Dr.
Chambers had not clearly addressed the language pertaining to their
disability as totally disabled. A conference call was made to Dr.
Chambers and she advised that both Daniel Jacque and Terry Nadeau
were permanently and totally disabled in their capacity as a police
officer and fire fighter and agreed to send written verification
clarifying this language.
It was moved by Trustee Barkyoumb, supported by Trustee Benavides
that the Board approve a Duty Disability Retirement for Daniel J.
Jacque, Police Department, 11 years 3 months service credit and age
40, effective December 12 , 1990 , and that Mr. Daniel J . Jacque. be
re-examined by the Medical Director in one year .
Adopted by the following roll call vote :
Yeas : Trustee Benavides , Barkyoumb, Cushman, Goodin, Hunnell ,
and Luzynski - 6
. Nays : None
Discussion was held re : offering and rejection of a position, in
dispatch, to a disabled employee verses the City first offering the
position to current disability retirees and the problems associated
with the situation as the charter refers only to Policemen' s and
Firemen' s disability .retirement .
• Trustee McKane arrived at 9 : 20 A.M.
It was moved by Trustee Barkyoumb, supported by Trustee Benavides
that the Board approve a Duty Disability Retirement for Terry L.
Nadeau, Fire Department, 22 years 9 months service credit and age
45 , . effective December 12 , 1990 , and that Mr. Nadeau be re-examined
by the Medical Director in one year.
Adopted by the following roll call vote:
Yeas : Trustee Benavides, Barkyoumb, Cushman, Goodin,. Hunnell ,
Luzynski , and McKane - 7
Nays : None
It was moved by Trustee Hunnell , supported by Trustee Luzynski that
the application for Regular Age and service Retirement for Michael
W. Dixon, Fire Department, be approved he having qualified with 25
years 6 months service credit, retirement effective January 3 ,
1991, and that the Secretary make the necessary transfer of funds .
Adopted by the following roll call vote:
Yeas : Trustee Benavides , Barkyoumb, Cushman, Goodin', Hunnell,
Luzynski, and McKane - 7
Nays : None
Mr. Duarte informed the Board of the results of the Primary
Election held December 3 through the 6 , 1990 as follows : 151
Returned Ballots, 33 Spoiled Ballots, 135 Members signed the Poll
. List, 144 Votes were cast; 49 for James R. Kus , 43 for John M.
Hunnell, 15 for Donald B. Viele and 6 for David L. Stacey. several
corners were not clipped from the ballots and there were 2 missing
corners . Mr. Duarte stated that he was displeased with the manner
•
in which the election was handled by the Police Department .
Trustee Hunnell left the meeting at 9 : 24 A.M. and returned at 9 : 26
A.M.
Melvin McWilliams advised that he had reviewed the election rules
and that the Board of Trustee acts as the Board of Canvassers in
certifying the votes . He stated that certain things are not
mandatory, however, only merely directives . Discussion was held.
Mr. McWilliams also advised that each candidate is to know what the
Primary Election results are, do they have any problem with the
results and, if in agreement, then we can proceed as planned with
the General Election.
It was moved by. Trustee Benavides , supported by Trustee Barkyoumb
that the Board certify the results of the Primary Election, held
December 3 through 6 , 1990 for the office of Police Trustee to the
Police and Fire Retirement System, as. stated by Mr. Duarte,
Secretary, after meeting with the candidates to get their
acceptance of the results of the Primary Election.
Adopted by the following vote : Unanimously.
The Board reviewed and approved the proposed monthly meeting dates
for the 1991 calendar year.
Mr. Duarte had distributed to the Board hand-outs on Personnel
Procedures for Duty or Non-Duty Disability Retirement .
It was moved by Trustee Hunnell , supported by Trustee Barkyoumb
that the Board review these procedures and that this item be placed
back on the meeting agenda for the month of January.
Adopted by the following vote: Unanimously.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the Board wait until after the Primary Election results have
been finalized and place the item to elect the Chairperson and
Vice-Chairperson to the Police & Fire Retirement System Board for
1991 back on the agenda for the January meeting.
Adopted by the following vote: Unanimously.
Discussion was held re: status report on Trustee McKenzie -
Military Leave. Trustee McKenzie had previously been excused from
the Board meeting due to military leave . This situation is to be
monitored by keeping in contact with him by mail and through his
family to see if he might be scheduled to return by March.
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb
that Trustee McKenzie be excused from the December Board meeting.
Adopted by the following vote: 5-2
Trustee Benavides and McKane left the Board meeting at 9 : 56 A.M.
Mr. Rubley informed the Board that three firms have been contacted
to make their presentation on the index fund and that perhaps a
combined meeting of both Boards could be arranged for the month of
January.
The Board recessed at 9 : 57 A.M. and reconvened at 10 : 04 A.M.
Hal Rossen and Ja Ann Shanley of Prudential-Bache gave a
presentation on the performance evaluation report for the Police &
Fire Retirement System quarter ended September 30 , 1990 . He stated
that the Board could review the strategy weekly brochure that was
in the portfolio folder and an article from the Dick Davis Digest
on investment ideas . Mr. Rossen also addressed the situation with
M.D . Sass , money managers , in relationship to the downgrading of
bonds (G. I .C' s ) held ( First Executive-Parent Company) .
Hal Rossen recommended to the Board to follow the lead that is
brought rack to them from M.D . Sass concerning the 80o drop in the
market value of , the G. I . C' S and do not make a change in money
mangers until this situation is resolved.
Mr . Rossen also distributed information and gave an update on the
different styles of investment management . In addition, a hand-out
was given to the Board on the City of Lansing, Employee ' s
Retirement System Asset Allocation Study and he reviewed such items
as expected return and risk, international equities ,
diversification, etc . Mr. Rossen stated that our current asset mix
is satisfactory under current and projected market conditions .
Mr. Doug Rubley distributed to the Board copies of the portfolio
summary from the National Bank of Detroit for funds evaluation as
of October 31 , 1990 for the Board' s review.
The Meeting Adjourned at 11 : 58 A.M.
Stephen W. Duarte, Secretary
Police & Fire Retirement System
• OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for November November 13 , 1990
8th Floor, Conference Room Tuesday, 8 : 35 A.M.
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 35 A.M.
Present:. Trustee Barkyoumb, Cushman, Goodin, Hunnell, & Luzynski -
5
Absent: Trustee Benavides, McKane and Mckenzie 3
Present: Stephen W. Duarte, Secretary; Ruby White & Doug Rubley,
Finance Dept. ; Melvin McWilliams, Chief Assist. City
Attorney; and Dave Weisenberg, Police Dept.
it was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the minutes of October 16 , 1990, be approved as corrected, by
adding the motion to go into Executive Session.
• Adopted by the following vote: Unanimously.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the minutes of the Executive Session for October 16, 1990, be
approved.
Adopted by the following vote: Unanimously.
The Secretary reported 4 new members 0 reinstatements, 0 refunds
and 6 retired. Total Membership: 552. Refunds made since the last
regular meeting amounted to $ . 00. Retirement allowances paid for
the month of October, 1990, amounted to $506,337. 20 total
retirement checks printed for P&F System 371, total. retirement
checks printed for all three systems 826.
Discussion was held concerning the disability retirement request
for Mr. Gary Guthrie.
The Mayor' s Accommodation Review Committee met and reviewed the
documentation of the reasonable accommodation efforts and Medical
statements from the City' s Medical Director. The Committee concurs
with Chief Hopkins request that Gary Guthrie be considered for
disability retirement. Additional discussion held.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the Board approve a Duty DMq y RTjq Wnt for Gary
Guthrie, Fire Dept. , effective No 14 0, and that Mr.
• Guthrie be re-examined by the year.
9tdIS�'�� '433�
• Police and Fire Retirement System
November 13 , 1990
Adopted by the following roll call vote:
Yeas: Trustee Barkyoumb, Cushman, Goodin, Hunnell and Luzynski
- 5
Nays: None
Letter by Mr. Duarte re: Qualified Domestic Order. Mr. Duarte
advised the Board that he sent a letter to Keldon Scott, Attorney
at Law, concerning the Modified Domestic Relations Order Regarding
Pension Benefits in the case of Martin V Martin. He also wanted to
make the Trustees aware that requests of this type are now coming
in frequently. Mr. Duarte stated that these Qualified Domestic
Orders will have to be looked at and reviewed. This may be coming
back with proposed language and possible Council action that will
address this item more specifically.
Mr. Duarte distributed to the Board an information sheet on Capital
Bidco, Inc. , current investment status, and stated that this was
for information only and would be received and placed on file with
no action necessary. The Secretary advised that he had notified
Capital Bidco of the Board' s position of not being interested at
this time.
The Board was also informed that: 1) Terrell Nadeau, Fire Dept. ,
requested a duty disability from Chief Hopkins and has been
reviewed by the Mayor' s Accommodation Review Committee, 2) Dan
Jacque, Police Dept. , was reviewed by the Mayor' s Accommodation
Committee and recommends that disability retirement be considered,
3 ) Robert Wade has received. a letter from the Chief Decker
concerning his physical health regarding being able to return to
work as an effective Firefighter and was advised to take the proper
steps, and 4) Michael Dixon, Fire Dept. , sent a letter to Chief
Hopkins requesting to be placed on retirement.
Mr. Duarte advised that a request for retirement must be formally
addressed to the Board either from the Chief or from the person
requesting the retirement.
Trustee Hunnell asked if rules could be adjusted in order for the
duty disability retirees to. have additional time to pay back the
money they owed due to excess earnings for the years of 1985 - 1987 .
only and not for any future years. This was also to be applied to
Mr.. Donahue and Mr. Issac. Discussion was held re: fiduciary
responsibility entrusted to them by other members of the system and
the possible objection to utilizing their retirement funds.
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb
that the Board move that in the case of Duty Disability retirees
• with excess earnings that they be allowed 2 years in which to pay
2
• Police and Fire Retirement System
November 13 , 1990
back 1 year of excess earnings (for the years of 1985 - 1987 only)
this could result in a 6 year payback, and in case of the death of
the duty disability retiree the responsibility would then fall on
the widow.
Failed by the following roll call vote
Yeas: Trustee Hunnell - 1
Nays: Trustee Barkyoumb, Cushman, Goodin, & Luzynski - 4
Mr. Doug Rubley advised that he dial not have the funds evaluation
report for the outside money managers due to M.D. Sass pricing on
bonds and the early meeting. However, an update was given
regarding the municipal bonds held by M.D. Sass that are backed by
GIC` s with First Executive.
Mr. Duarte requested that Mr. Harold Rossen of Prudential-Bache
provide an independent analysis of the options currently under
consideration by M.D. Sass.
Mr. Duarte, Secretary, certified to the Board that nominating
petitions were received by the Retirement System Office by 4: 00
P.M. on November 13 , 1990, for John M. Hunnell, James R. Kus, David
L. Stacey and Donald B. Viele. The names of persons signing the
• nominating petitions have been compared with the active membership
rolls of Police and Fire Retirement System and invalid signatures
have been removed from the petitions.
Mr. Duarte further certified that the 4 candidates have filed valid
petitions. A Primary Election will be held over the four day
period from Monday, December 3, 1990 through Thursday, December 6,
1990. The General Election to select the trustee member will be
held over the four day period from Monday, December 17, 1990
through Thursday, December 20, 1990.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the Board approve the certification of nominating petitions by
the Secretary for. John M Hunnell, James R. Kus, David L. Stacey and
Donald B. Viele for the office of Police Trustee to the.Police and
Fire Retirement System for the upcoming Primary Election.
Adopted by the following vote: Unanimously.
Mr. Duarte, Secretary, also present to the Board the names of the
following election inspectors for both the Primary Election and
General Election. The Board received and placed on file the names
of Ted Rahl, Nancy .Small, Sam Bennett, Tom Wright and Peter Loepke.
as election inspectors for both elections.
The secretary informed the. Board of Trustees that Ms. Ruby White
and/or Ms. Lesley Seldenright would deliver the Poll. List, Ballots
and Ballot Box over to the Police Department election inspectors at
3
Police and Fire Retirement System
November 13 , 1990
7: 00 A.M. the mornings of the first election day of the Primary
Election and General Election. In addition that the votes will be
counted at 8: 15 P.M. at the close of the last day of each election.
Mr. Duarte advised the Board that he would review the rules with.
Melvin McWilliams, Chief Assist. City Attorney, as to what course
of action must be taken concerning the absence of Trustee McKenzie
from the Board meeting, due to his call to active military duty.
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb
that the Board excuse Trustee Benavides, McKane and McKenzie from
the Board meeting.
Adopted by the following vote: Unanimously.
The Meeting Adjourned at 10:33 A.M.
he�uarte Secretary
y
Police & Fire Retirement System
•
4
RECD. LANSING -
C17% CLERK
• BY:
190 OGT 30 PM 3 1.3
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
"CORRECTED MINUTES"
Regular Meeting for October October 16 , 1990
8th Floor, Conference Room Tuesday, 8 :34 A.M.
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to'
order by the Chairperson, Jack Cushman, at 8 : 34 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Hunnell
Luzynski and McKane - 7.
Absent: Trustee McKenzie 1
Present : Stephen W. Duarte, Secretary; Ruby White & Doug Rubley,
Finance Dept. ; Melvin McWilliams , Chief Assistant City
• Attorney and Peter Alvord, Duty Disability Retiree.
It was moved by Trustee Barkyoumb and supported by Trustee McKane
that the minutes of the regular meeting for September 18 , 1990
be approved.
Adopted by the following vote: Unanimously.
The Secretary reported 18 new members , 0 reinstatements, 0 refunds
and 2 retired. Total Membership: 554 . Refunds made since the last
regular meeting amounted to $ . 00 . Retirement allowances paid for
the month of September, 1990 amounted to $497 , 832 . 38 total
retirement checks printed for P&F System 371, total retirement
checks printed for all three systems 821 .
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
the application for regular age and service retirement, for Clyde
L. Lickman, Fire Department, be approved he having qualified with
25 years 0 months service credit, retirement effective October 10 ,
1990, and that the Secretary make the necessary transfer of funds .
Adopted by the following roll call vote:
Yeas : Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and
McKane - 6
Nays : None
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
• the application for regular age and service retirement for Keith
A. Pardee, Fire Department, be approved he having qualified with
25 years 0 months service credit, retirement effective October 10 ,
1990, and that the Secretary make the necessary transfer of funds .
. • Page 2
•
Adopted by the following roll call vote :
Yeas : Trustee Barkyoumb, Cushman, Goodin, Hunnell , Luzynski and
McKane - 6 -
Nays : None
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
the application for regular age and service retirement for Larry
D. Earls , Fire Department, be approved he having qualified with 25
years 0 months service credit, retirement effective October 10 ,
1990 , and that the Secretary make the necessary transfer of funds .
Adopted by the following roll call vote :
Yeas : Trustee Barkyoumb, Cushman, Gooding Hunnell, Luzynski and
McKane - 6
Nays : None
8 :43 A.M. Trustee Benevides arrived at the meeting.
After review and discussion of the Medical Report and an inquiry
with regards to eligibility for age & service and discussion re:
Supreme Court decision relative to Betts verses Ohio the following
action was taken for R. Steven Willard, Fire. Department :
It was moved by Trustee Hunnell, supported by Trustee Luzynski,
that in. accordance with the medical report by Dr. Chambers, Medical
Director R. Steven Willard, Fire Department, be placed on Duty
Disability Retirement effective October 17 , 1990, with a review in
one year and that the Secretary make the necessary transfer of
funds .
Yeas : Trustee Barkyoumb, Benevides , Cushman, Goodin, Hunnell ,
Luzynski and McKane - 7 -
Nays : None
Discussion was held with regards to the request by Chief Hopkins,
Fire Department, for Gary Guthrie to be placed on disability
retirement. Mr. McWilliams, Chief Assistant City Attorney,
recommended to the board that they refer this matter to the Mayors '
Accommodation Review Committee.
It was moved by Trustee Hunnell, supported by Trustee Benevides
that the request by Chief Hopkins , for Gary Guthrie to be placed
on disability retirement be referred to the Mayors ' Accommodation
Review Committee.
Adopted by the following vote: Unamiously.
Trustee McKane suggested that the Secretary, Attorney and Personnel
work out a scenario to formalize procedures to be followed when
dealing with request for disability retirement.
It was moved by Trustee tarkyoumb, supported by Trustee Luzynski
• that the request for Gary Guthrie, Fire Department, be referred to
the appropriate medical advisor.
Adopted by the following vote: Unamiously
u •. . _ . � Page 3
•
Chairperson Cushman, read a letter from the Mayor with reference
to all minutes being filed with the City Clerk. Mr. Duarte,
Secretary advised the board that he will check with the City Clerk
to ensure that he is satisfied with the minutes on file .
The Chairperson read to the Board a letter from the Secretary
advised that the Board take no action with regards to
grandfathering as a result of Section 415 of IRS Code and that Mr.
Sonnanstine, actuary, is reviewing the plan. Mr. Duarte will be
working to develop a plan that will clearly avoid invalidating the
retirement plan from exempt tax status .
The Secretary distributed the annual internal report .
9 : 23 Trustee McKane left the meeting.
Mr. McWilliams , Assistant Chief City• Attorney advised that the
Board go into executive session.
It was moved by Trustee Barkyoumb supported by Trustee Hunnell
that the board rise from the regular meeting at 9 : 23 and go into
executive session for the purpose of discussing pending litigation
• on the Donahue and Isaac case.
Adopted by the following roll call vote :
Yeas - Trustee Barkyoumb, Benavides, Cushman, Goodin, Hunnell and
Luzynski - 6
Nays - None
The Board reconvened at 9 : 38 A.M.
Mr. Peter Alvord, Duty Disability Retiree, addressed the Board with
regards to, a real problem for his family, if the board reduces his
retirement allowance for 12 payments , as advised, for earnings
earned over the allowable amount for 1987 . He stated his earnings
have since become much less than in .1987,. Mr. Alvord asked is
there any discretionary ability of the Board to allow a longer
period of payback? Mr. McWilliams, Chief Assistant City Attorney,
advised that under the current rules there is not such discretion.
The Board voiced their concern about getting involved in having to
know about all income, inheritance, etc . and the subjective nature
of case by case hardship. Mr. Alvord asked if litigation as is
currently pending would refund to him they won. Mr. McWilliams
advised that he' s not part of the case and that the facts are
different in may ways from his.
Trustee Hunnell stated that he would like to bring out a couple
more items regarding disability excess earnings at the next
meeting.
10 : 00 Trustee Benevides and Hunnell left the meeting. Trustee
Hunnell returned at 10 : 05 .
Page 4
•
Mr. Barkyoumb left the meeting at 10 : 05 and returned at 10 : 07 .
Mr. Rubley distributed to the Board copies of the monthly asset
summary dated October 16 , 1990 for funds evaluation and presented
a brief overview of the transactions by the outside money managers .
Discussion was . held with regards to the roll Hal Rossen,
Prudential-Bache, as our consultant should play in addition to
advising the board about the performance evaluation of the money
managers and the swing in the market place 'and whether during the
next project evaluation process increased services of the
consultant be added.
Trustee Barkyoumb requested that Mr. Rubley ask Hal Rossen where
do you think we are and what should we be doing at this time.
The Board excused Trustee McKenzie from the meetings for. three
months on September 18, 1990 .
The Meeting Adjourned at 11 : 03 A.M.
•
Stephen W. Duarte, Secretary
Police & Fire Retirement System
•
OF �qti
CITY of LANSING �
INTEROFFICE COMMUNICATION
e i 5 1 9 it'll"
1< -r x l•
TO: James D. Blair, City Clerk DATE:10/24/90
FROM: Stephen W. Duarte, Director of Finance
SUBJECT: Retirement Board Minutes
In order to comply with the Mayor's directive regarding minutes of
public boards, I understand that you are requesting copies of minutes for the
General Employees and Police & Fire Retirement Boards for the past 12 months.
I have been informed by staff that you should have received the sets of
minutes for each of those boards covering that time, and that future minutes
will be forwarded to you upon their approval.
Please check to be certain you have received these sets of minutes -- I
will assume you now have these on file unless I hear from you to the contrary.
Also, please let me know should any problems occur on this in the future.
Thank you.
/sd
c.c. Mayor Terry J. McKane
03
lA -C
C
o
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING tv
POLICE AND FIRE RETIREMENT SYSTEM WD
.� M =
:a ;10 0)
Regular Meeting for October Octoberfi-6, 19?b=
8th Floor, Conference Room Tuesday, 8'�34 A.M.
Ln
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 34 A.M.
Present: Trustee Benavides , Barkyoumb, Cushman, Goodin, Hunnell
Luzynski and McKane - 7
Absent : Trustee McKenzie - 1
Present : Stephen W. Duarte, Secretary; Ruby White & Doug Rubley,
Finance Dept. ; Melvin McWilliams , Chief Assistant City
• Attorney and Peter Alvord, Duty Disability Retiree.
It was moved by Trustee Barkyoumb and supported by Trustee McKane
that the minutes of the regular meeting for September 18, 1990
be approved.
Adopted by the following vote: Unanimously.
The Secretary reported 18 new members, 0 reinstatements, 0 refunds
and 2 retired. Total Membership: 554 . Refunds made since the last
regular meeting amounted to $ . 00 . Retirement allowances paid for
the month of September, 1990 amounted to $497 , 832 .38 total
retirement checks printed for P&F System 371 , total retirement
checks printed for all three systems 821 .
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
the application for regular age and service retirement for Clyde
L. Lickman, Fire Department, be approved he having qualified with
25 years 0 months service credit, retirement effective October 10,
1990 , and that the secretary make the necessary transfer of funds .
Adopted by the following roll call vote:
Yeas : Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and
McKane - 6
Nays : None
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
the application for regular age and service retirement for Keith
A. Pardee, Fire Department, be approved he having qualified with
25 years 0 months service credit, retirement effective October 10,
1990 , and that the Secretary make the necessary transfer of funds .
_ • � Page 2 -
Adopted by the following roll call vote:
Yeas : Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and
McKane - 6
Nays : None
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
the application for regular age and service retirement for Larry
D. Earls, Fire Department, be approved he having qualified with 25
years 0 months service credit, retirement effective October 10,
1990, and that the Secretary make the necessary transfer of funds .
Adopted by the following roll call vote :
Yeas : Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and
McKane - 6
Nays : None
8 : 43 A.M. Trustee Benevides arrived at the meeting.
After review and discussion of the Medical Report and an inquiry
with regards to eligibility for age & service and discussion re:
Supreme Court decision relative to Betts verses Ohio the following
action was taken for R. Steven Willard, Fire Department:
It was moved by Trustee Hunnell, supported by Trustee Luzynski,
that in accordance with the medical report by Dr. Chambers , Medical
Director R. Steven Willard, Fire Department, be placed on Duty
Disability Retirement effective October 17 , 1990, with a review in
one year and that the Secretary make the necessary transfer of
funds .
Yeas : Trustee Barkyoumb, Benevides , Cushman, Goodin, Hunnell ,
Luzynski and McKane - 7
Nays : None
Discussion was held with regards to the request by Chief Hopkins,
Fire Department, for Gary Guthrie to be . .placed on disability
retirement. Mr. McWilliams , Chief Assistant City Attorney,
recommended to the board that they refer this matter to the Mayors '
Accommodation Review Committee.
It was moved by Trustee Hunnell, supported by Trustee Benevides
that the request by Chief Hopkins , for Gary Guthrie to be placed
on disability retirement be referred to the Mayors ' Accommodation
Review Committee .
Adopted by the following vote: Unamiously.
Trustee McKane suggested that the Secretary, Attorney and Personnel
work out a scenario to formalize procedures to be followed when
dealing with request for disability retirement.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the request for Gary Guthrie, Fire Department, be referred to
the appropriate medical advisor.
Adopted by the following vote : Unamiously
- . • Page 3
•
Chairperson Cushman, read a letter from the Mayor with reference
to all minutes being filed with the City Clerk. Mr. Duarte,
Secretary advised the board that he will check with the City Clerk
to ensure that he is satisfied with the minutes on file .
The Chairperson read to the Board a letter from the Secretary
advised that the Board take no action with regards to
grandfathering as a result of Section 415 of IRS Code and that Mr.
Sonnanstine, actuary, is reviewing the plan. Mr. Duarte will be
working to develop a plan that will clearly avoid invalidating the
retirement plan from exempt tax status .
The Secretary distributed the annual internal report .
9 : 23 Trustee McKane left the meeting.
Mr. McWilliams , Assistant Chief City Attorney advised that the
Board go into executive session.
9 : 23 the Board went into executive session and at 9 :38 the Board
reconvened.
Mr. Peter Alvord, Duty Disability Retiree, addressed the Board with
regards to, a real problem for his family, if the board reduces his
retirement allowance for 12 payments, as advised, for earnings
earned over the allowable amount for 1987 . He stated his earnings
have since become much less than in 1987 . Mr. Alvord asked is
there any discretionary ability of the Board to allow a longer
period of payback? Mr. McWilliams , Chief Assistant City Attorney,
advised that under the current rules there is not such discretion.
The Board voiced their concern about getting involved in having to
know about all income, inheritance, etc . and the subjective nature
of case by case hardship. Mr. Alvord asked if litigation as is
currently pending would refund to him they won. Mr. McWilliams
advised that he ' s not part of the case and that the facts are
different in may ways from his .
Trustee Hunnell stated that he would like to bring out a couple
more items regarding disability excess earnings at the next
meeting.
10 : 00 Trustee Benevides and Hunnell left the meeting. Trustee
ti
Hunnell returned at 10 : 05 .
Mr. Barkyoumb left the meeting at 10 : 05 and returned at 10 :07 .
Mr. Rubley distributed to the Board copies of the monthly asset
summary dated October 16 ; 1990 for funds evaluation and presented
a brief overview of the transactions by the outside money managers .
•Page 4
•
Discussion was held with regards to the roll Hal Rossen,
Prudential-Bache, as our consultant should play in addition to
advising the board about the performance evaluation of the money
managers and the swing in the market place and whether during the
next project evaluation process increased services of the
consultant be added.
Trustee Barkyoumb requested that Mr. Rubley ask Hal Rossen where
do you think we are and what should we be doing at this time .
The Board excused Trustee McKenzie from- the meetings for three
months on September 18 , 1990 .
The Meeting Adjourned at 11 : 03 A.M.
W .
Stephen W. Duarte, Secretary
Police & Fire Retirement System
n
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for September September 18, 1990
Jim`s Tiffany Place
Capitol Room 2nd Floor Tuesday 8 : 37 A.M.
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 :37 A.M.
Present: Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
and McKane - 6
Absent: Trustee Benavides and McKenzie - 2
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams
Chief Assist. City Attorney; Ed Piloske, Internal Audit
Dept. ; Alan Sonnanstine, Gabriel Roeder Smith & Co.
It was moved by Trustee McKane, supported by 'Trustee Barkyoumb that
the minutes of the Regular meeting and Executive Session of August
• 21, 1990 and the Special meeting of August 27, 1990, be approved.
Adopted by the following vote: Unanimously.
The Secretary reported 2 new members, 0 reinstatements, 0 refunds
and 1 retired. Total Membership: 538. Refunds made since the last
regular meeting amounted to $ .00. Retirement allowances paid for
the month of August, 1990, amounted to $493 ,305.77 total retirement
checks printed for P&F System 370, total retirement checks printed
for all three systems 820.
It was moved by Trustee Barkyoumb, supported by' Trustee Hunnell
that the application for regular age and service retirement for
James E. Florian, Fire Department, 25 years 0 months service
credit, age 48, retirement effective October 10, 1990, be approved
and that the Secretary make the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski, McKane
6
Nays: None
It was moved by Trustee Barkyoumb, supported by Trustee SQUnrxt1l
that the application for regular age and service retiremeRt for
Montague L. Thocker, Fire Department, 25 years 0 months "r ic@, r�
credit, age 52, retirement effective October 10 , 1990, be aWr vedi
and that the Secretary make the necessary transfer of fund65
Adopted by the following roll call vote:
. =D rn
� N
Police & Fire Retirement System
September 18, 1990
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski, McKane -
6
Nays: None
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the application for regular age and service retirement for
John C. Miller, Police Department, 25 years 1 month service credit,
age 49, retirement effective September 8, 1990, be approved and
that the Secretary make the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski, McKane -
6
Nays: None
Mr. Duarte informed the Board that he had mailed a letter out to
the duty disability retirees re: notice for filing earnings
statement for the years 1985, 1986 and 1987, and that those earning
statements have been reviewed. Mr. Peter Alvord is the only person
who had an excess earnings which was in the amount of $6 ,720. 46 .
Discussion was held. Melvin McWilliams, Chief Assist. City
Attorney, stated that "Rule No. 10: Adjustment of Disability
Annuity" . will come into effect re: "if the total amount. to be
deducted exceeds $60-,00, one-twelfth of said total shall be
deducted out .of each of. the .next. twelve pension checks due" .
It was moved by Trustee McKane, supported by Trustee Luzynski that-
the Secretary be directed to send a letter to Mr. Peter Alvord
informing him that in accordance--with. Chapter 16 , Section 30 (c)
1 the Board applied the earnings test required and according to the
records he had excess earnings in the amount of $6,720. 46. To
provide for an orderly process of recoupment the Board will apply
Rule No. 10 : Adjustment of Disability Annuity, and his monthly
deduction amount will be $560. 04 for 11 months and the 12th
deduction will be in the amount of $560. 02.
Adopted by the following vote: Unanimously
Mr. Duarte added that concerning the Duty Disability Earnings
request for 1989 Mr. Richard Cortright had not yet responded to his
final notice, and that we had received a note from Mr. Eric Stevens
. advising that he did not understand the letter sent to him.
The Board requested that the Secretary send an additional letter
to Mr. Eric Stevens re-explaining Chapter 16, Section 30 (c) 2 of
the Charter of the City of Lansing, which governs the Police & Fire
Retirement System advising that he must comply with this section
of the Charter, and that he or someone on the Board would be more
than happy to make arrangements to help him in any way necessary.
2
.f, .
Police & Fire Retirement System
September 18 , 1990
The Secretary, Mr. Duarte, reported to the Board that a letter had
been sent to Richard Bushamp, Dean Lardie & Jerry Mires, Duty
Disability retirees, advising that the Board of Trustee's concurred
with Dr. Guarnaccia (City Medical Director' s) re-evaluation that
they remain on disability status, subject to review in one year.
Mr. Duarte gave an update on Section 415 of the IRS Code.
Attention should be paid to early retirement benefits and to long
term low-paid employees whose benefits may have been bumped up
above and beyond permissible cost of living increases. Mr. Duarte
advised, 1) that the City appears to have no problems in this area,
2) that requesting to be grandfathered in (before October 1st) will
result in more stringent regulations in the future, 3 ) we are in
compliance with the code, and 4) that the City should take no
action at this time, however, we should keep a close watch on
Section 415. .
Mr. Duarte distributed to the Board a copy of the current
investment status as of August 1, 1990 from Capital Bidco , Inc.
for the Trustees to read privately, and discussion was held.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the Board direct the Secretary to send another letter to
• Capital. Bidco, Inc. informing them that the Board has been
presented all the information on Capital Bidco, however, they must
take into consideration their fiduciary responsibilities and are
not interested in pursuing this type of investment.
Adopted by the following vote: Unanimously.
Mr. Duarte, Secretary, advised the Board that a request had been
made by Mr. R. Steven Willard, Fire Department, for a Duty
Disability retirement. ' Discussion held.
It was moved by Trustee Hunnell., supported by Trustee Barkyoumb
that the Board receive the request from Mr. R. Steven Willard, Fire
Dept. , for a Duty Disability retirement and schedule him for an
appointment with the City's Medical Director.
Adopted by the following vote: Unanimously.
Mr. Duarte reviewed with the Board the MAPERS conference being held
at the Amway Grand Plaza on Sept. 30 thru Oct. 2, 1990 and Mrs.
Seldenright handed out the confirmation slips for room
reservations.
Mr. Doug Rubley addressed the item on re-evaluating investment
goals - 3% real rate of return. Mr. Duarte added that at the
Employees Retirement System Board meeting he had asked Mr. Hal
Rossen his professional opinions on how the portfolio was doing
concerning the risk factor, strategy, etc. Mr. Duarte and Mr.
3
Police & Fire Retirement System
September 18, 1990
Rubley are reviewing the contract with Prudential-Bache re:
defining responsibilities of the evaluation consultant and
questioning whether we have been receiving, as a board, the
contractually required information. Mr. Duarte also advised that
he will inform Mr. Rossen prior to interviewing with . firms. In
addition, the Secretary will inform the Board of these actions and
timeframes.
Trustee Hunnell again addressed the item on the movement of service
credits between reciprocal. units of government and Mr. Duarte
stated that the items of earning service credit while on worker' s
comp, service credit buy backs and prefunding of health care are
still pending an opinion from the City Attorney on whether or not
these issues must be collectively bargained.
The Secretary informed the Board that Officer McKenzie has
requested an excused absence for three months due to Active Duty
in the Reserves.
It was moved by Trustee Barkyoumb, supported by Trustee McKane that
the Board excuse Trustee McKenzie for a three month. period from the
Board meeting.
• Adopted by the following vote: Unanimously.
It was moved by Trustee McKane, . supported by Trustee Barkyoumb that
the Board excuse Trustee Benavides from the this Board meeting.
Adopted by the following vote: Unanimously
Mr... Rubley advised that. the opening of the RFQ. on the index fund
will be Thursday of this week. Doug distributed to the Board a
copy of the portfolio summary from the National Bank of Detroit for
funds evaluation as of August 31, 1990, and presented a short
overview of the transactions by the outside money managers.
Mr. Alan Sonnanstine of Gabriel, Roeder, Smith & Company gave a
presentation on the Annual Actuarial Valuation report for December
31, 1989 for the Police & Fire Retirement System.
T Mee ng Adjourne t 10: 30 A.M.
)lo
Stephen W. Duarte, Secretary
Police & Fire Retirement System
4
FLa
OFFICE OF THE MAYOR
91h Floor, City Hall
_ 124 West Michigan Avenue
* * Lansing. Michigan 48933-1694
(517)483-4141 (Voice)
Nis (517)483-4088(TDD)
(517)483-4109(FAX)
Terry J. McKane, Mayor
October 2 , 1990
Mr. Jack Cushman, Chairperson
Police and Fire Retirement System
1717 Briarwood
Lansing, MI 48917
Dear Mr. Cushman:
It has been brought to my attention that the City Clerk is
missing minutes from several past City board meetings .
I am writing to remind you that according to the City Charter,
board action is only official after minutes have been filed with
the City Clerk.
Please take immediate action to update your files with the
City Clerk by providing copies of all appropriate board minutes .
Thank you for your cooperation. These minutes should be filed
on a regular basis following future board meetings .
Sincerely,
jTerryMc ane
TJM:kc
c : James Blair, City Clerk
"Equal Opportunity Employer"
SPECIAL BOARD MEETING
BOARD OF TRUSTEES
POLICE AND FIRE RETIREMENT SYSTEM
8th Floor, Conference Room August 27, 1990
City Hall Monday, 9: 31 A.M.
Lansing, Mich.
The Special Board meeting was called to order by Chairperson, Jack
.Cushman, at 9: 31 A.M.
Present: Board Members:
Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski
and McKenzie - 7
Absent: Board Members:
McKane - 1
Present: Others:
Stephen W. Duarte, Secretary; Ed Piloske, Internal Audit;
Melvin McWilliams, Chief Assist. City Attorney; Dr.
Glendora Chambers, Medical Director; and Dorine K. Lee,
Police Department
Under public comments for items on the agenda Ms. Dorine Lee stated
that she had been injured several times while on duty.
The Chairperson advised that under the open meeting act if 2/3 of
the Board of Trustees are present they could go into Executive
Session and Melvin McWilliam, Chief Assist. City Attorney, stated
that it would be for the purpose of discussing Ms. Lee' s medical
facts.
The Board asked Dr. Chambers if she had reviewed the questions that
had been sent to her concerning items relating to Ms. Lee' s case
and Dr.. Chambers responded that she had.
Dr. Chambers informed . the Trustees that she was aware of the
differences governing Duty Disability and Non-Duty Disability
Retirement.
In addition, Dr. Chambers advised that the provision re: an
employee is not eligible for duty disability unless determined it
occurred "without willful negligence on his part" , is not pertinent
at this time.
Dr. Chambers stated that in reviewing the medical reports there
d 6
ONISNV I '0038
:I
Special Board Meeting
Police & Fire Retirement System
August 27, 1990
were some inconsistencies: 1) the psychologist who stated "job `
related stress was a major contributing factor in her suicide
attempt" , versus 2) Douglas A. Sargent, M.D. , J.D. ' s statement
which is not stated as clearly, "Her multiple illnesses and
operations have added to the difficulty of performing her job; some
of them may, in fact, result from job stress. ", and Dr. Chambers
stated at the Board meeting that the street patrol adds to the
problem of drinking.
The Chairperson replied that previously Ms. Dorine Lee. had been
placed back on duty as a patrolman with no restrictions at that
time, and felt the Board needed further clarification in order to,
make a decision.
Dr. Chambers told the Board that she had access to all medical
information at the time she was preparing her medical evaluation
on Ms. Lee.
Also, Dr. Chambers informed the Board. members, that at the time Ms.
Lee was beaten, it affected all aspects of her life during that
period.
Trustee Benavides main concern was for the liability of the City
of Lansing.
Trustee Hunnell arrived at 9: 51 A.M.
The Board was informed that when on duty disability retirement
status a person will receive an annual .amount to age 55 of 2/3 of
final average compensation and at age 55 the benefit is recomputed
to include additional service credit to age 55 and an . adjusted
final average compensation based on current pay of rank held at
retirement. Also, that a non-duty disability retirement annual
amount is computed as regular age & service retirement with no
change.
Discussion continued and Dr. Chambers, City Medical Director,
advised that she based her recommendation on all information
available, and that "she did not believe that Ms. Lee is physically
able to return to work as a police officer at this time" . Further,
that" retirement is also recommended if no work is available- to her
that is low. stress and does not require that she handle firearms."
It was moved by Trustee Hunnell, supported by Trustee Benavides
that the Board place Ms. Dorine K. Lee, Police Dept. , on Duty
Disability Retirement status and have her sent to the City's
2
Special Board Meeting
Police & Fire Retirement System
August 27 , 1990
Medical Director for re-examination in one year.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski
and McKenzie - 7
Nays: None
The Special Board Meeting Adjourned at 10: 19 A.M.
Stephen W. Duarte, Secretary
Police & Fire Retirement System
3
_. -
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for August August 21, 1990
8th Floor, Conference Room Tuesday 8: 32 A.M.
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman," at 8: 32 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Luzynski,
McKane & McKenzie - 7
Absent: Trustee Hunnell - 1
Present: Jan Lazar, Acting Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams
Chief Assist. City Attorney; Ed Piloske, Internal Audit
Dept. ; Hal Rossen, Prudential-Bache; Dorine Lee, Police
Dept. ; and Debbie Fellows, sister of Dorine Lee
Trustee McKane arrived at 8: 34 A.M.
Request for Duty Disability Retirement, Doraine, K. Lee, Police
Dept. , 11 years 11 months service credit and age 38.
Ms. Lee stated that she did not wish to meet with the Handicapper
Accommodation Assoc. due to a possibility of additional surgery,
Mrs. Lazar reported that she had reviewed with Ms. Lee on August
20, 1990, a letter on the . two different types of disability
retirement covered under the Police & Fire Retirement System and
provided her with a copy of Chapter 16. Ms. Lee had then signed
the letter certifying she had reviewed the provisions of the
retirement system, received a copy of Chapter 16 & had knowledge:
of her rights under the Handicapper Accommodation.
Trustee McKenzie arrived at 8:37 A.M.
Mrs. Lazar also advised that Ms. Doraine Lee had received a copy
of a letter from Karen Jackson, Director of Personnel, Safety &
Training, discussing such items as 1) Mayor' s Accommodation Review
Committee, 2) remaining on payroll, 3 ) Handicapper Accommodation
Procedures I, _etc.
Melvin McWilliams, Chief Assist. City Attorney, addressed. the Board
re: request for duty disability pension advising that case laws in
other states place emphasis on findings on major contributing cause
is the work environHriV, WdGthPJfftV1s Medical Director supported
that statement.
71a.7 It! 11�V 1
ONISNVI '0�3�
Police & Fire Retirement System
August 21, 1990
It was moved by Trustee McKenzie, supported by Trustee Goodin that
the Board rise from the regular meeting at 8 : 56 A.M. and go into
Executive Session for the purpose of receiving legal advise from
Mr. Melvin McWilliams, Chief Assist. City Attorney.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Luzynski, McKane
& McKenzie - 7
Nays: None
The Board returned to the regular meeting session at 9: 44 A.M.
Trustee McKane left the meeting during the Executive Session at
9: 07 A.M.
It was moved by Trustee Luzynski, supported by Trustee McKenzie
that the Board contact Dr. Chambers; City' s Medical Director,
requesting that she be present at a special board meeting to be
held on Monday, August 27, 1990 , to discuss and answer questions
concerning the request for duty disability retirement from Doraine
K. Lee, Police Dept.
Adopted by the following vote: Unanimously.
Trustee McKenzie left the meeting at 9: 55 A.M.
-Ms. Dorine Lee asked the following questions: 1) could she be kept
on the payroll until she is placed on disability status and Mrs.
Lazar stated she could not, as she had exhausted all accrued time
& donated time was not under the control of the Board; 2 ) Ms. Lee
asked about her medical insurance and Mrs. Lazar stated her medical
insurance will continue until the 20th of September; 3 ) Ms. Lee
asked if she could get copies of the doctors reports from us and
Mrs. Lazar indicated we were not at liberty to release them however
she could contact her own physician for this information.
Chairperson Cushman stated that the general consensus is if there
is a gray area the Board would like the Medical Director present.
Trustee McKenzie returned at 10:00 A.M.
Trustee Benavides left the meeting at 10: 00 A.M.
Mr. Hal Rossen of Prudential-Bache gave a presentation on the
performance evaluation for the Police & Fire Retirement System
portfolio for the quarter ended June 30, 1990.
Trustee Luzynski left the meeting at 10: 29 A.M. and returned at
10:31 A.M.
2
Police & Fire Retirement System
August 21, 1990
Item to be placed on agenda for next months meeting re: re-
evaluate investment goals - 3% real rate of return.
It was moved by Trustee Barkyoumb, supported by Trustee Goodin that
the minutes of the regular meeting for July 19, 1990, be approved.
Adopted by the following vote: Unanimously.
The Secretary reported 3 new members, 0 reinstatements, 0 refunds
and 0 retired. Total Membership: 537. Refunds made since the last
regular meeting amounted to $ . 00. Retirement allowances paid for
the month of July, 1990 , amounted to $490, 263 . 48 , total retirement
checks printed for P & F System 369, total retirement checks
printed for all three systems 819.
Mrs. Lazar advised the Board on the duty disability earnings
reports for 1989 stating there were 26 duty disability earnings
requests for 1989, 22 returned, 4 have not yet reported and 1
second notice that is unclaimed. Mrs. Lazar also stated that Final
notices will be going out.
Request from Joseph M. Brown, Police Dept. , to transfer service
credits from Eaton County to City of Lansing Police & Fire
Retirement System. The Board advised that service credit cannot
be transferred from one reciprocal unit to another and requested
that the Secretary, Mr. Duarte, send a letter to Mr. Brown advising
him of this process.
Medical reports for Richard Bushamp, Dean Lardie & Jerry Mires,
Duty Disability Retiree 's. Copies of the medical reports were
distributed to the Board members and discussion held.
It was moved by Trustee Barkyoumb, supported by Trustee McKenzie
that the Board accept the medical reports for Richard Bushamp, Dean
Lardie & Jerry Mires; that they remain on Duty Disability status
until they are re-evaluated next year, and that the Secretary be
directed to send a letter advising them of the Board's action.
Adopted by the following vote: Unanimously.
Discussion was held on the contract agreement with Gabriel, Roeder,
Smith & Company.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the Board approve the contract with Gabriel, Roeder, Smith &
Company, Actuary, for the normal actuarial and consulting services.
beginning July 1, 1990. through June 30, 1991. The fee will be
$6,920.00, payable in quarterly installments of $1,730. 00.
Adopted by the following vote: Unanimously
The Chairperson distributed to the Board copies of a letter from
Mr. Duarte to John Richard, President, Fraternal Order of Police,
3
Police & Fire Retirement System
August 21, 1990
and read aloud re: Police & Fire Retirement Board' s concerns
relative to City council's resolution #187 and what their
objections were. Trustee McKenzie will check with Mr. Richard and
make sure that he had. received all the information that he needed.
It was moved by Trustee Barkyoumb, supported by Trustee McKenzie
that Trustee Hunnell be excused from the meeting.
Adopted by the following vote: Unanimously.
It was moved by Trustee Barkyoumb, supported by Trustee McKenzie
that the Board set a special Police and Fire Retirement Board
meeting for Monday, August 27, 1990, at 9: 00 A.M. in the 8th Floor
Conference Room for the purpose of inviting in Dr. Chambers , City' s
Medical Director, to address the evaluation reports on Dorine K.
Lee, Police Dept. , who has requested to be placed on a Duty
Disability status.
Adopted by the following vote: Unanimously.
Doug Rubley advised the Board that there was a class action suit
with E.F. Hutton with a total settlement of $8,000, 000 and the City
received a reimbursement of $9,986.52 and was returned to Rollert
Sullivan/'Lazard Freres. managers who owned the stock . in our
portfolio. In addition, Mr. Rubley stated that he would be drawing
upon the retirement system in August and that $500, 000 is coming
in for payroll. Also, Mr. Rubley informed the Board that all the
purchasing information concerning the RFQ for the index fund is
completed and is going out for mailing and advertising.
Mr. Rubley distributed to the Board copies of the portfolio summary
from the National Bank of Detroit for funds evaluation as of July
31, 1990, and presented a brief overview of the transactions by the
outside money managers.
The Meeting Adjourned at 11: 25 A.M.
Step en W. Duarte,. Secretary
Police & Fire Retirement System
4
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for July July 17, 1990
8th Floor, Conference Room Tuesday 9: 02 A.M.
City Hall
Lansing, Michigan
An informational meeting was held by the Board while awaiting a
quorum. Mr. Doug Rubley distributed to the Trustees copies of the
portfolio summary from the National Bank of Detroit for funds
evaluation as of June 30, 1990, and presented an overview of the
transactions by the outside money managers . Doug advised that he
would be drawing funds in the approximate amount of $600 ,000 from
the money managers to meet payroll costs for the month of August.
In addition, Doug informed the Board that a draft on the RFQ and
RFP re: manager - index fund is completed and will be mailed out.
Doug also mentioned that there is a list of 8 to 10 vendors
available to him, that he will advertise this publication, and that
he will continued to keep the Board informed. Mr. Rubley stated
that we are in compliance with the purchasing ordinance.
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 9: 02 A.M.
I
Present: Trustee Barkyoumb, Cushman, Goodin, Luzynski, and
McKenzie - 5
Absent: Trustee Benavides, Hunnell, & McKane - 3
Present: Stephen W. Duarte, Secretary; Doug Rubley & Lesley Ann
Seldenright, Finance Dept. ; Melvin McWilliams, Chief
Assist. City Attorney; and Ed Piloske, Internal Audit
Dept.
It was moved by Trustee Barkyoumb, supported by Trustee Goodin that
the minutes of the regular meeting for June 19, 1990, be approved.
Adopted by the. following vote: Unanimously. .
The Secretary reported 2 new members, 0 reinstatements, 1 refund
and 1 retired. Total membership; 534. Refunds made since the last
regular meeting amounted to $12,162. 67 . Retirement allowances paid
for the month of June, 1990, amounted to $491,898.43 , total
retirement checks printed for ..R&F System 369, total retirement
checks printed for all three systems, 819.
Mr. Duarte provided an update to the Board on the Duty Disability
Earnings Re _ort for 1989 stating that there were: 1) 26 letters
mailed out n8 t p try r ity Earnings request for 1989, 2)
there have been 1 ettt�l and 3 ) 9 have not yet reported. The
final filing 30 , 1990 . Mr. Duarte advised that a
second notice 1 be mail to those who have not yet complied and
Police & Fire Retirement System
July 17 , 1990
then a final notice will be sent, if necessary.
Review of Medical Status of Duty Disability Retirees. The
Secretary, Mr. Duarte, informed the Board that due to Dr.
Guarnaccia, Medical Director, being out of town appointments for
medical examinations have now been scheduled for the following
people: 1) Richard Bushamp 7/19/90, 2) Dean Lardie 7/24/90 and 3 )
Jerry Mires 7/17/90. The Board will review the results of these
examinations upon their return from Dr. Guarnaccia.
Discussion was held with regard to the performance of Prudential
Bache and the method of payment. Mr. Duarte addressed his concerns
with respect to payment in soft dollars as opposed to hard dollars
and the potential for conflicts. Also, discussion was held
concerning the possibility of inviting in another evaluation firm
to address the Board providing them certain information, and then
requesting that they provide actual data in the area of performance
evaluation relating directly to our four money managers.
It was moved by Trustee Barkyoumb, supported by Trustee Goodin that
this Board in conjunction with the Employees Retirement System
Board request that the Secretary look into the possibility of a new
performance evaluation manager.
Adopted by the following vote: Unanimously
Discussion was held re: medical statement from Dr. Phillip B. Storm
concerning Steven Willard, Fire Dept. advising that Mr. Willard is
medically unable to return to work indefinitely. The Secretary,
Mr. Duarte, advised that Mr. Williard is on Duty - Sick Leave and
that neither the Fire Chief nor Mr. Willard have made a formal
request to the Board for a Disability retirement status. However,
Mr. Duarte did inform the Board that the Fire chief is holding off
sending this individual to the City's Medical Director until after
August 1, 1990, . after a change in the City's medical director
(Ingham Medical Center) has taken place.
It was moved by Trustee Barkyoumb, supported by Trustee McKenzie
that the item re: medical statement for Steven Willard, Fire Dept.
be place on file and no action taken until a formal request is
received for a Disability Retirement.
Adopted by the following vote: Unanimously.
Mr. Duarte distributed to the Board members copies of the agenda
for the 1990 Fall MAPERS Conference and apprised the Trustees that
it will be held at the Amway Grand Plaza, Grand Rapids, MI
beginning Sunday, Sept. 30,. 1990 and continuing through Tuesday,
Oct. 2, 1990. Trustee Goodin and McKenzie indicated that they
would be interested in attending and, in addition, Doug Rubley and
Melvin McWilliam expressed a desire to be present at the MAPERS
conference. The Secretary requested that those wishing to attend
2
Police & Fire Retirement System
July 17, 1990
please confirm this with Mrs. Seldenright within the next couple
of days.
It was moved by Trustee Barkyoumb, supported by Trustee McKenzie
that Trustees Benavides, Hunnell and McKane be excused from the
Board meeting.
Adopted by the following vote: Unanimously.
Mr. Rubley relayed to the Board that Mr. Hal Rossen of Prudential
Bache will provide a performance evaluation at next month's Board
meeting.
Melvin McWilliams, Chief Assist. City Attorney, updated the Board
concerning the pending Issac —Donahue Case, stating that a motion
has been filed before Judge Houk for August 13th, and if sufficient
evidence is established there will be a trial. However, Mr.
McWilliams informed the Board that he asked Judge Houk, that now
that the issue is in front of him with all the facts, and given the
law, would he rule rather than continue any further with this case.
The Meeting Adjourned at 9: 42 A.M.
Stephen W. Duarte, Secretary
Police & Fire Retirement System
.J
3
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for June June 19, 1990
8th Floor, Conference Room Tuesday 8 : 31 A.M.
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 31 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Hunnell,
Luzynski, and McKenzie - 7
Absent: Trustee McKane - 1
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams,
Chief Assist. ' City Attorney; and Ed Piloske, Internal
Audit Dept.
It was moved by Trustee Barkyoumb, supported by Trustee Goodin that
the minutes of the regular meeting for May 15, 1990, and Special
Joint Board meetings for May 15, 1990 and May 17, 1990, be
r approved. .
Adopted by the following vote: Unanimously..
The Secretary reported 1 new member, 0 reinstatements, 1 refund and
1 retired. Total Membership: 534. Refunds made since the last
regular meeting amounted to $ . 00 . Retirement allowances paid for
the month of May, 1990 , amounted to $4.88, 874. 52 , total retirement
checks printed for P&F System 368 , total retirement checks printed
for all three systems 819.
The Secretary distributed to the Board for .their review copies of
the letter from Dr. Guarnaccia re: medical report for Dennis
Donahue, Police Department, Duty Disability Retiree.
Mrs. White, Retirement Technician, informed the Board that she had
spoken to the Police Department and that Mr. Donahue must return
to the patrolman position that he previously held at the time he
left the City on his Disability status.
Discussion was held.
Trustee Benavides arrived at the Board meeting at 8 : 36 A.M.
It was moved by Trustee .Hunne11, supported by Trustee McKenzie that
Dennis Donahue remaina. ng b)iE ty status, and that he be
advised with a letter rom eS ry of the Board, that as a
N83310
.: ONiSNVI *0038
Police & Fire Retirement System
June 19 , 1990
result of Dr. Guarnaccia' s medical report, he is to remain on his
current Duty Disability status. In addition, Mr. Donahue is to be
advised that if he has any additional input or wishes to address
the Board he will be given that opportunity.
Adopted by the following vote: Unanimously.
The Secretary distributed to the Board a schedule showing all the
Duty Disability retirees for the Board' s review. Discussion held.
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb,
that any duty disability retiree that has been off for at least one
year, but not more than two years, and has not been re-examined,
is to undergo a medical examination by or under the direction of
the medical director in accordance with Chapter 16 Section 30 (a)
of the Charter of the City of Lansing.
Adopted by the following vote: Unanimously.
The Board indicated that the following duty disability retirees
fall within the guidelines and are to be scheduled with Dr.
Guarnaccia for an examination: Richard Bushamp, _ Patrolman; Dean
Lardie, Fireman and Jerry Mires, Lieutenant and, also, advised that
Rodney Hunt was exempt as he had already been re-examined.
Report on Duty Disability Earnings Report for 1989 . The Secretary
informed the Board members that he had sent a letter to all the
Duty Disability retirees advising them that the Charter requires
that a Statement of Earnings be filed annually with the Board of
Trustees and that this form must be returned by June 30, 1990. In
addition, if they do not. reply Mr. Duarte will mail out a second
request and then a final notice.
Trustee Hunnell posed the question (as it relates to usage of 200
of the Contingency Reserve Fund for increases to the retirees) does
the so called Members Fund exist? The Secretary, Mr.. Duarte,
advised that the money had been transferred (to cover the retiree's
increases in pension benefits) and does not exist.
It was moved by Trustee Benavides, supported by Trustee Barkyoumb
that the Board excused Trustee McKane from the Board meeting.
Adopted by the following vote: Unanimously.
Mr. Doug Rubley distributed to the Board copies .of the portfolio
summary from the National Bank of Detroit for funds evaluation as
of May 31, 1990, and presented an overview of the transactions by
the outside money managers. Mr. Rubley indicated that by the end
of July this system will need funds for payroll and to pay the fees
for the money managers. Discussion was held.
2
Police & Fire Retirement System
June 19, 1990
Mr. Rubley also discussed with the Board the item on indexing that
will be tied to the S & P 500 . He stated that he will try to have
a request for proposal on the index fund for the month of August,
but would also like this item placed on next month's meeting agenda
for further discussion and, in addition, Doug will contact the
money managers.
The Meeting Adjourned at 9: 43 A.M.
Stephen W. Duarte, Secretary
Police & Fire Retirement System
_ 3
JOINT BOARD MEETING
BOARD OF TRUSTEES
CITY OF LANSING RETIREMENT SYSTEMS
Jim' s Tiffany Place May 17 , 1990
, Capitol Room, 2nd Floor
Lansing, Mich.
The Joint Board of Trustees meeting was brought to order at 10: 00
A.M.
Present: Board Members:
Barkyoumb, Cushman, Goodin, Luzynski, Moye, Pontz & White
7
Absent: Board Members:
Benavides, McKane, Hunnell, McKenzie, Jackson, & Perdue -
6
Present: Others:
Stephen W. Duarte , Secretary; Doug Rubley & Lesley A.
Seldenright, Finance Dept. ; Ed Piloske, Internal Audit;
i Jerry Seizert & John Hill of Loomis Sayles; Hugh Lamle
of M.D. Sass; and Hal Rossen of Prudential-Bache
Jerry Seizert and John Hill of Loomis, Sayles & Company distributed
a booklet to the Board and gave a presentation on the General
Employees Retirement System and Police & Fire Retirement System on.
the performance summary reviewing key economic issues such as: 1)
inflation, 2 ) real economic activity, 3 ) international factors, 4)
monetary policy & fixed income holdings.
Trustee Barkyoumb, Moye and Pontz left the meeting at 11: 29 A.M.
Hugh Lamle of M. D. Sass distributed to the Board members a report
on 'the City of Lansing General Employees Retirement Trust and the
Police and Fire Retirement System Trustee discussing with the
members such items as : 1) corporate bond equivalent yields, 2)
current coupon treasury notes and bonds, and 3 ) fixed income
securities (government, corporate & municipal bonds) .
The Joint Boards Adjourned at 12:38 A.M.
Stephen W. Duarte, Secretary
Retirement Boards-Joint Meeting
��t 8
�,, ONISNVI '003a
JOINT BOARD MEETING
BOARD OF TRUSTEES
CITY OF LANSING RETIREMENT SYSTEMS
Radisson Hotel May 15, 1990
2nd Floor, Regency II Room
Lansing, Michigan
The Joint Board of Trustees meeting was called to order by
Chairperson, Jack Cushman, at 10 : 00 A.M.
Present: Board Members:
Barkyoumb, Cushman, Goodin, Hunnell, Luzynski, McKenzie,
and White - 7
Absent: Board Members:
Benavides, McKane, Jackson, Moye , Perdue, & Pontz - 6
Present: Others:
Stephen W. Duarte, Secretary; Doug Rubley . & Lesley
�. Seldenright, Finance Dept. ; Ed Piloske, Internal. Audit;
Hal Rossen & Jo Ann Shanley, Prudential-Bache; Tom Frazes
& Peter McCarthy of Lazard Freres; and Fred Thorne & Alan
Fields of Harbor Capital
Mr. Hal Rossen introduced the. Board to Jo Ann Shanley who recently
joined Prudential-Bache to replace Carolyn Koliba as Consulting
Coordinator. Mr. Rossen gave a presentation on performance
measurement services for the quarter ended March 31, 1990 and also
distributed to the Board an article on "Why Global Equity
Investing" , the rewards and risks.
Fred Thorne and Alan Fields of Harbor Capital Management Co.
provided a presentation on the City of Lansing Retirement Systems
performance summary for the Police & Fire Retirement System and the
General Employees Retirement System reviewing such items as: 1)
asset mix, 2) economic outlook in the areas of autos, housing,
capital spending, government spending, inflation, profits &
interest rates, and 3 ) Portfolio analysis (growth & value stocks) .
In addition, they distributed to the Board a pamplet on, "Harbor-
Baer International" on international investing.
Tom Frazes and Peter McCarthy of Lazard' Freres Asset Management
j also provided a presentation on the City of Lansing Retirement
s Systems advising of: lTZt'9e,tpvtew11�gapital Market Performance,
. iJJ
1
x�J310 ;',110
�. WSM '00321
Joint Board Meeting
May 15, 1990
2) Equity Strategy and 3 ) future outlook. In addition, Lazard
Freres passed out an item on international equity performance.
The Joint Boards Adjourned at 11: 57 A.M.
Stephen W. Duarte, Secretary
Retirement Boards-Joint Meeting
f` r
2
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for May May 15 , 1990
Radisson Hotel Tuesday 8 : 22 A.M.
2nd Floor, Regency II Room
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 22 A.M.
Present: Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
McKane & McKenzie - 7
Absent: Trustee Benavides - 1
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams,
Chief Assist. City Attorney; and Ed Piloske, Internal
Audit
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the minutes of the regular meeting for April 17, 1990 , be
approved.
Adopted by the following vote: Unanimously.
The Secretary reported 1 new member, 0 reinstatements, 1 refund and
4 retired. Total Membership: 535. Refunds made since the last
regular meeting amounted to $14,548 . 29. Retirement allowances paid
for the month of April 1990 , amounted to $474,760. 24, total
retirement checks printed for Police & Fire System 367 , total
retirement checks printed for all. three systems 816.
It was. moved by Trustee Barkyoumb, supported by Trustee McKenzie
that the application for. regular age and service retirement for
William W. Wilkins, Fire Dept. , 25 years 10 months service credit
age 49 , retirement effective 4/23/90, be approved and that the
Secretary make the necessary transfer' of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Hunnell, Luzynski & McKenzie - 5
Nays: None
Trustee Goodin arrived at 8: 24 A.M.
I It was moved by Trustee McKenzie, supported by Trustee Hunnell that
the application for regular age and service retirement for Michael
McCourt, Police Dept. , 25 years 1 month service credit, age 48 and
} retirement effective 5/26/90, .be approved and that the Secretary
make the necessary transfer on fonf 6 13 ,
Adopted by the following roll call vote:
ONISNVI '00M
Police & Fire Retirement System
May 15 , 1990
Yeas : Barkyoumb, Cushman, Goodin, Hunnell, Luzynski, & McKenzie
6
Nays : None
Update on Duty Disability Retiree' s reporting of prior years
earnings. Mr. Duarte advised the Board that except for Eric
Stevens the Retirement Office is in receipt of all Duty Disability
Retiree's annual earnings reports for calendar year 1985 , 1986 and
1987. This includes Mr. Isaac and Mr. Donahue.
Lengthy discussion was held on Resolution #187 which was passed by
the City Council, City of Lansing, at its regular meeting on April
23 , 1990, re: effective May 1, 1990 an increase can be funded from
200 of the contingency reserve in the Police & Fire Retirement
System for the minimum annual benefit for persons with 20 or more
years of credited service which shall be $8 ,620 for a retiree and
$4,310 for a surviving spouse; and that this increase will not
jeopardize the retirement system' s ability to pay future benefits
to its current and future retirees, and further that this increase
will not have a material or significant impact upon the wages,
hours, or other conditions of employment of current employees who
are active members of the retirement system.
Trustee McKane arrived at 8 : 33 A.M.
The Secretary, Mr. Duarte, stated that he would like guidance from
the Board as to: 1) are the bargaining units apprised of Resolution
#187, and 2 ) where do we stand as a Board on this action. Melvin
McWilliams stated as far as getting Union concurrence that would
be great, but Council has already acted and it is now a matter of
implementing what they decided. The Contingency Reserve is viewed
as surplus funds and with surplus funds the City can improve
benefits for retirees. This is not crystal clear (gray area) and
arguably is not a mandatory subject of bargaining, since terms and
conditions of employment of existing employees is not affected.
However, the Attorney' s Office has in the past urged the City to
obtain union concurrence so that we do not have to get into a gray
area.
Trustee Hunnell left the meeting at 9: 04 A.M. and returned at 9:06
A.M.
The Board was also concerned about their fiduciary responsibility
for the retirement funds. Mr. McWilliams advised that funds are
still part of the system and the. Board continues to have fiduciary
obligations in investing these funds. He stated changes in the
plan and benefits have been ongoing historically. This is just
2
Police & Fire Retirement System
May 15 , 1990
another change and as long as this action does not jeopardize
paying benefits or impair the system, Mr. McWilliams does not see
that by allowing the action by Council, the Board has failed in its
fiduciary responsibilities.
It was moved by Trustee Hunnell, supported by Trustee McKenzie that
the Board send a letter to the respective bargaining units advising
them that it is the intent of City Council to spend these dollars
to increase current retirees benefits, and it is still the wish of
the Board that these benefits not be paid at this particular time,
and that Council has acted against the wishes of the Board. In
addition, clarify to the unions what the Council has done, and also
reiterate the stand of the Board that they do not feel benefits
should be paid at this time. A copy of this letter is to be sent
to the Council.
Adopted by the following vote: Motion Carried, 6-1. With Trustee
Luzynski voting no.
Report on Duty Disability Earnings Report for 1989. Mr. Duarte
informed the Board that a letter has been drafted and is being
mailed today to all the Duty Disability Retirees informing them
that the Charter requires that a statement of earnings be filed
annually with the Board of Trustee. This form for 1989 is to be
returned to the Finance office before June 30, 1990.
The Chairperson read a letter to the Board re: Dennis Donahue (Duty
Disability Retiree) requesting reinstatement as a Sergeant
Supervisor. Discussion was held.
Trustee Hunnell left at 9: 35 A.M. and returned at 9: 37 A.M.
Trustee Luzynski left at 9: 36 A.M. and returned 9: 40. A.M.
Trustee MaKane left the meeting at 9: 40 A.M.
It was moved by Trustee McKenzie, supported by Trustee. Barkyoumb
that the Board refer Dennis Donahue, Duty Disability Retiree, to
the City physician for re-evaluation for possible return to duty.
Adopted by the following vote: Unanimously.
It was moved by Trustee McKenzie, supported by Trustee Barkyoumb
that the Board excuse Trustee Benavides from the meeting.
Adopted by the following vote: Unanimously.
Mr. Rubley distributed to the Board copies of the portfolio summary
from the National Bank of Detroit for funds evaluation as of April
30 , 1990. He advised that we would be going into a Joint Board
meeting and that Prudential Bache would give a performance
evaluation. In addition, the money managers from Harbor Capital
3
Police & Fire Retirement System
May 15, 1990
and Lazard Freres would give their presentation.
The Meeting Adjourned at 9: 57 A.M.
Stephen W. Duarte, Secretary
Police & Fire Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for April April 17, 1990
8th Floor, Conference Room Tuesday 8 : 34 A.M
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 34 A.M.
Present: Trustee Barkyoumb, Cushman, Goodin, Hunnell, Luzynski &
McKane .- 6
Absent: Trustee Benavides & McKenzie - 2
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams
Chief Assist. City Attorney; Ed Piloske, Internal Audit
and John Richard, Police Dept.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski.
that the minutes of the regular meeting for March 20 , 1990 , be
approved.
Adopted by the following vote: Unanimously.
The Secretary reported 1 new member, 0 reinstatements, 0 refunds
and 2 retired. Total Membership: 539. Refunds made since the last
regular meeting amounted to $ . 00 . Retirement allowances paid for
the month of March 1990, amounted to $463 ,555.74 .
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Henry Houghtaling, Fire Dept. , 27 years 4 months service credit,
age 52, effective 4/3/90, be approved and that the Secretary make
the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and McKane
- 6.
Nays: None
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Lynn A. Vander Moere, Fire Dept. , 25 years 6 months service credit,
age 51, effective March 23 , 1990, be approved and that the
Secretary make the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cus n Goodin, Hunnell, Luzynski and McKane
- 6. tdd 6 100 069
Nays: None
9N{SNVI 'fl�32i
Police and Fire Retirement System
April 17, 1990
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Howard Clevenger, Police Dept. , 25 years 7 months service credit,
age 48 , effective 4/7/90 , be approved and that the Secretary make
the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and McKane
6.
Nays: None
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Douglas E. Pollard, Police Dept. , 27 years 0 months service credit,
age 50, effective 3/14/90, be approved and that the Secretary make
the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski and McKane
6.
Nays: None
Update on Duty Disability Retiree ' s reporting of prior years
earnings. Mr. Duarte advised the Board that Eric Stevens has sent
in his payment for his health care coverage and that his pension
check has been stopped. In addition, Mr. Donahue and Mr. Isaac are
responding through their own attorney. -Mr. Duarte stated he is
letting the time expire for the second notice and then sending out
the final notice.
Actuarial report onproposed increase in, minimum benefit amount.
Mr. Duarte informed the Board that: 1) they had previously stated
that prefunding of health care should be addressed before retirees
increase, 2) that the Urge group is not satisfied and is applying
pressure, 3 ) that Council would like to do something by perhaps
using the Contingency Reserve for raises for retirees and 4)that
they are surveying some of the retirees. Alan Sonnanstine of
Gabriel Roeder Smith & Co. provided to Mr. Duarte 3 proposals that
he has estimated as a change in the minimum annual benefit that can
be fully financed by 200 of the contingency reserve. The December
31, .1988 contingency reserve totaled $3 ,708,578. Using 20% of the
contingency reserve for increasing the minimum benefit means that
the objective is to determine a new minimum benefit with a lump sum
cost of about $741,716. The present minimum annual benefit, for
persons with 20 or more years of credited service, is $5, 407. 50 for
a retiree and $2,703 .75 for a surviving spouse. Lenghtly
discussion was held.
Mr. Duarte advised that: 1) we need an attorney's opinion as to
whether the City Council can vote a raise without the Board's.
2
Police and Fire Retirement System
April 17, 1990
approval, and 2) if this raise is turned down Mr. Duarte would
prefer to return to Council with the representation of other Board
memebers. The Secretary drew a graph on the chalk board explaining
the manner in which the Pension Accumulation fund and Employees
Savings fund would be placed in the Retirement Reserve Fund.
Trustee McKane suggested that 20% be set aside for the retirees
down the road and the 50% of that interest be automatically used
for retirees instead of giving all the funds at one time.
Melvin McWilliams, Chief Assist. City Attorney, advised that if the
bargaining units agree regardless of what the Board recommends the
City Council can proceed as long as surplus funds are used and
current employees benefits are assured. Mr. McWilliams also stated
that the Charter which was adopted by the voters does not address
the issue that this Board be an advisory Board to the Council.
Mr. Duarte informed the Board that: 1) Council was willing to send
back to this Board for a recommendation, 2) that 80% of the
Contingency Reserve itself, would not totally prefund health care,
3 ) that it will take approximately 2 million dollars a year to
prefund health care, 4 ) . $700 ,000 is coming from the change in the
interest rate assumption (moving to 8% & 5% rate) ; and 5 ) the City
would use the 80% of Contingency Reserve and gradually increasing '
general fund dollars each year until the City fully absorbs the
full 2 million dollars. Chairperson Cushman summarized and a
motion was made.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the Board table any benefit increases until the prefunding of
health care issue has been resolved.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Goodin, Hunnell & McKane - 4
Nays: Cushman & Luzynski -2
Trustee McKane left the meeting at 9: 34 A.M.
The Secretary advised the Board that it was time to mail out the
Duty Disability Earnings Report for 1989 and asked for the Board's
approval.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the Board authorize the Secretary to proceed with the mailing
out of the 1989 Duty Disability Earnings Report for 1989.
Adopted by the following vote: Unanimously.
It was moved by Trustee Barkyoumb, supported by Trustee Goodin that
the Board rise from the regular meeting at 9: 45 A.M. and go into
Executive Session for the purpose of discussing litigation on the
Donahue & Isaac case.
Adopted by the following roll call vote:
3
Police and Fire Retirement System
April 17 , 1990
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, & Luzynski - 5
Nays: None
The Board returned to the regular meeting session at 9 : 55 A.M.
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb
that the Board excuse Trustee McKenzie from the meeting.
Adopted by the following vote: Unanimously.
Doug Rubley distributed to the Board the revised Policemen &
Firemen Retirement System summary sheet from Prudential-Bache on
securities as of December 31, 1989 and the Board received it and
placed it on file. Mr. Rubley also distributed to the Board copies
of the Analysis of Fees on Performance of External Managers through
December 31, 1989, explaining that approximately $409,000 is spent
in management fees per year and that Prudential Bache is paid in
soft dollars, but Mr. Rubley would prefer to make a change to pay
them in hard dollars. Doug mentioned that the Board might review
the idea of a floating scale, that is, if the performance of the
money manager goes up the fee could go up and if the performance
went down the fee would revert downward. Discussion was also held
on the possibility of index funding with reference to the S & P
500. Mr. Rubley advised that the S & P has been in the top
quartile the last 7 to 8- years and that the fee for using the S &
P 500 as an investment type manager would be about 1/2 the cost of
what we pay our present money managers.
Mr. Rubley passed out a copy of the portfolio summary from the
National Bank of Detroit for funds evaluation as of March 30, 1990,
and presented an overview of the transactions by the outside money
managers. Doug indicated to the Board that there was a memo
attached to this report on Taxable Municipal Bonds and asked that
the Board review the memo and along with that item distributed a
separate inventory of account sheet from M.D. Sass Associates. Doug
also advised the Board that there were 3 pages in the portfolio
summary report that actually had 2 sections of each page indicating
a comparison of the trade value based on the memo from M.D. Sass.
Mr. Rubley- advised that the Joint Board meetings would be held on
May 15th and May 17th and a lunch is planned immediately following.
The Meeting Adjourn at 11: 01 A.M.
,�,l.Cti vvc
Stephe W. Duarte, Secretary
Police & Fire Retirement. System
4
OFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for March March 20, 1990
8th Floor, Conference Room Tuesday 8: 35 A.M.
City Hall, 8th Floor
Lansing, Michigan
The Board of Trustee met in regular session and was called to order
by the Chairperson, Jack Cushman, at 8: 35 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Hunnell,
Luzynski, and McKenzie - 7
Absent: Trustee McKane - 1
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams
Chief Assist. City Attorney, and Ed Piloske, Internal
Audit
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb
that the minutes of the regular meeting for February 20, 1990, be
approved.
i Adopted by the following vote: Unanimously.
The Secretary reported 4 new members, 0 reinstatements, 1 refund
and 2 retired. Total Membership: 540. Refunds made since the last
regular meeting amounted to $933 . 03 . Retirement allowances paid
for the month of February 1990, amounted to $462, 098.70.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the application for regular age and service retirement for
Gerald D. Meredith, Fire Dept. , 27 years 11 months service credit,
age 54, effective 3/16/90, be approved and that the Secretary make
the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
and McKenzie - 7
Nays: None
It was moved by Trustee Benavides, supported by Trustee McKenzie
that the application for regular age and service retirement for
David Taylor, Fire Dept. , 26 years 5 months service credit, age 51
effective 4/7/90, be approved and that the secretary make the
necessary transfer of funds.
Adopted by the following roll call vote:
Yeas : Benavides, Barkyoumb, Cushman, Gppdjn. &upejj, Luzynski,
and McKenzie - 7 G yy tt77
Nays: None
1 - NU310 ±I0
9NISNb� 'a�32�
Police & Fire Retirement System
March 20, 1990
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the transfer from duty disability to regular age and service
retirement for Carl A. Rinckey, Jr. , 30 years 5 months service
credit, age 55 , effective 4/4/90, be approved and that the
Secretary make the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
and McKenzie - 7
Nays-: None
Update on Eric Stevens, Duty Disability Retiree' s Insurance. Mr.
Duarte informed the Board that 1) a certified second request letter
had been mailed to Mr. Stevens on prior years earnings, 2) sent a
personal letter to his house giving notice that he must continue
to pay additional for health care insurance since he is not
receiving a pension check at this time, and 3 ) that another letter
had been mailed on March 13 , 1990 asking if he would consider
meeting with someone in the Retirement Office or a Retirement Board
member representing the Fire Dept. so that they might review the
necessary forms that need to be filled out for the Duty Disability
Earnings Statements. In addition, Mr. Duarte added that Mr.
Stevens did pay the amount to continue his health care insurance,
however, he is now in arrears again and 'Mr. Duarte may consider
mailing another letter . to Mr. Stevens.
Update on Duty Disability Retiree ' s reporting of prior years
earnings. Mr. Duarte informed the Board that he had sent out the
certified second notice letters on the prior years earnings to the
Duty Disability retirees and that the final notice will be prepared
and mailed at the proper time.
Mr. Duarte distributed to the Board for their information copies
of 1) a letter to Mr. Kevin Lynch, The Townsend Group, regarding
the Board' s decision not to proceed with real estate investments
at this point in time, and 2) memo to Ways . and Means Committee
advising that the Board will not recommend benefit increases to
existing retirees until the issue of prefunding health care is
resolved.
The Chairperson asked if the Board had been notified that Carolyn
Koliba was leaving the employ of Prudential Bache to go with
another firm. Doug Rubley stated that he had received a phone call
from Carolyn advising she would be mailing out notices that she
had been hired by another investment firm and that she was leaving
with the best of feelings.
The Secretary distributed to the Board copies of the agenda for the
MAPERS 1990 Spring Conference to be held May 20, thru 22, 1990 at
2
Police & Fire Retirement System
March 20, 1990
Shanty Creek-Schuss Mountain Resort, Bellaire, Mich. Discussion
was held and those Board members wishing to attend are to notify
Lesley Seldenright within a couple of days.
It was moved by Trustee Benavides, supported by Trustee Barkyoumb
that the Board excuse Trustee McKane from the meeting.
Adopted by the following vote: Unanimously.
Trustee McKenzie left the meeting at 8: 52 A.M.
Doug Rubley distributed a copy of the portfolio summary from the
National Bank of Detroit for funds evaluation as of February 28,
1990 , and presented an overview of the transactions by the outside
money managers. Doug stated since real estate managers were not
going to be hired, that the funds held in-house (approximately 2. 1
million dollars) would not be distributed to external managers.
In-house funds would be used to pay payroll and other related costs
of the system. It was anticipated that additional funds would be
required by July 1990 .
Mr. Rubley informed the Board that Lazard-Freres Asset Management
Company will sponsor one of two meetings in May for the managers
presentations, and also for addressing the item on global
investing. Mr. Rubley advised he will filter any information he
receives from the managers on to the Boards. Also, Mr. Rubley
stated that he will research Public Act 55 in reference to its
relationship to the S&P 500, and that he has begun to build a file
on the impact of investment managers fees for the Board' s general
information.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the Board approve the Joint Board meetings on May 15th and May
17th following the regular Board meetings.
Adopted by the following vote: Unanimously.
TbeMeeL' ngdjourne at 9: 26 A.M.
UV "
Stephe W. Duarte, Secretary
Police & Fire Retirement System
3
OFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting for March March 20, 1990
8th Floor, Conference Room Tuesday 8: 35 A.M.
City Hall, 8th Floor
Lansing, Michigan
The Board of Trustee met in regular session and was called to order
by the Chairperson, Jack Cushman, at 8: 35 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Hunnell, 3
Luzynski, and McKenzie - 7
Absent: Trustee McKane - 1
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams
Chief Assist. City Attorney, and Ed Piloske, Internal
Audit
It was moved by Trustee Hunnell, supported by Trustee Barkyoumb
that the minutes of the regular meeting for February 20, 1990, be
approved.
+ Adopted by the following vote: Unanimously.
The Secretary reported 4 new members, 0 reinstatements, 1 refund
and 2 retired. Total Membership: 540. Refunds made since the last
regular meeting amounted to $933 . 03 . Retirement allowances paid
for the month of February 1990 , amounted to $462, 098 .70 .
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the application for regular age and service retirement for
Gerald D. Meredith, Fire Dept. , 27 years 11 months service credit,
age 54, effective 3/16/90, be approved and that the Secretary make
the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
and McKenzie - 7
Nays: None
It was moved by Trustee Benavides, supported by Trustee McKenzie
that the application for regular age and service retirement for
David Taylor, Fire Dept. , 26 years 5 months service credit, age 51
effective 4/7/90, be approved and that the Secretary make the
necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
and McKenzie - 7
Nays: None
1
Police & Fire Retirement System
March 20, 1990
It was moved by .Trustee Barkyoumb, supported by Trustee Luzynski
that the transfer from duty disability to regular age and service
retirement for Carl A. Rinckey, Jr. , 30 years 5 months service
credit, age 55, effective 4/4/90, be approved and that the
Secretary make the necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
and McKenzie - 7
Nays: None
Update on Eric Stevens, Duty Disability Retiree' s Insurance. Mr.
Duarte informed the Board that 1) a certified second request letter
had been mailed to Mr. Stevens on prior years earnings, 2) sent a
personal letter to his house giving notice that he must continue
to pay additional for health care insurance since he is not
receiving a pension check at this time, and 3 ) that another letter
had been mailed on March 13 , 1990 asking if he would consider
meeting with someone in the Retirement Office or a Retirement Board
member representing the Fire Dept. so that they might review the
necessary forms that need to be filled out for the Duty Disability
Earnings Statements. In addition, Mr. Duarte added that Mr.
Stevens did pay the amount to continue his health care insurance,
however, he is now in arrears again and Mr. Duarte may consider
mailing another letter to Mr. Stevens.
Update on Duty Disability Retiree' s reporting of prior years
earnings. Mr. Duarte informed the Board that he had sent out the
certified second notice letters on the prior years earnings to the
Duty Disability retirees and that the final notice will be prepared
and mailed at the proper time.
Mr. Duarte distributed to the Board for their information copies
of 1) a letter to Mr. Kevin Lynch, The Townsend Group, regarding
the Board' s decision not to proceed with real estate investments
at this point in time, and 2) memo to Ways and Means Committee
advising that the Board will not recommend benefit increases to
existing retirees until the issue of prefunding health care is
resolved.
The Chairperson asked if the Board had been notified that Carolyn
Koliba was leaving the employ of Prudential Bache to go with
another firm. Doug Rubley stated that he had received a phone call
from Carolyn advising she would be mailing out notices that she
had been hired by another investment firm and that she was leaving
with the best of feelings.
The Secretary distributed to the Board copies of the agenda for the
MAPERS 1990 Spring Conference to be held May 20, thru 22, 1990 at
2
u1 ~ s
Police & Fire Retirement System
March 20, 1990
Shanty Creek-Schuss Mountain Resort, Bellaire, Mich. Discussion
was held and those Board members wishing to attend are to notify
Lesley Seldenright within a couple of days.
It was moved by Trustee Benavides, supported by Trustee Barkyoumb
that the Board excuse Trustee McKane from the meeting.
Adopted by the following vote: Unanimously.
Trustee McKenzie left the meeting at 8: 52 A.M.
Doug Rubley distributed a copy of the portfolio summary from the
National Bank of Detroit for funds evaluation as of February 28,
1990, and presented an overview of the transactions by the outside
money managers. Doug stated since real estate managers were not
going to be hired, that the funds held in-house (approximately 2. 1
million dollars) would not be distributed to external managers.
In-house funds would be used to pay payroll and other related costs
of the system. It was anticipated that additional funds would be
required by July 1990.
Mr. Rubley informed the Board that Lazard-Freres Asset Management
Company will sponsor- one of two meetings in May for the managers
presentations, and also for addressing the item on global
investing. Mr. Rubley advised he will filter any information he
receives from the managers on to the Boards. Also, Mr. Rubley
stated that he will research Public Act 55 in reference to its
relationship to the S&P 500, and that he has begun to build a file
on the impact of investment managers fees for the Board's general
information.
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the Board approve the Joint Board meetings on May 15th and May
17th following the regular Board meetings.
Adopted by the following vote: Unanimously.
T e MeeL� djourne at 9: 26 A.M.
UV "
Stephe W. Duarte, Secretary
Police & Fire Retirement System
3
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM _
Regular Meeting of February February 20, 1990
Council Conference Room Tuesday, 8 : 38 A.M.
City Hall, loth Floor
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 38 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Hunnell,
and McKenzie - 6
Absent: Trustee Luzynski and McKane - 2
Present: Stephen W. Duarte, Secretary; Ruby White, Doug Rubley and
Lesley Ann Seldenright, Finance Dept. ; Melvin McWilliams,
Chief Assist. City Attorney and Ed Piloske, Internal
Audit
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the minutes of the January 16, 1990, meeting be approved as
corrected, and the minutes of the Joint Board meeting of February
6, 1990, be approved.
Adopted by the following vote: Unanimously.
The Secretary reported 0 new members, 0 reinstatements, 0 refunds
and 10 retired. Total Membership: 539. Refunds made since the
last regular meeting amounted to $ . 00. Retirement allowances paid
for the month of January 1990, amounted to $449,788. 20.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the application for regular age and service retirement for Lee
O. Sawdy, Fire Dept. , 27 years 7 months service credit, and age 51,
effective 1/29/90 , be approved and that the Secretary make the
necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Barkyoumb, Cushman, Goodin, Hunnell, & McKenzie - 5
Nays: None
It was moved by Trustee McKenzie, supported by Trustee Hunnell that
the application for regular age and service retirement for John J.
Baylis, 28 years 4 months service credit, and age 51 effective
2/3/90, be approved and that the Secretary make the necessary
transfer of funds.
Adopted by the following roll call vote:
Yeas : Barkyoumb, Cushman, Goodin, Hunnell, & McKenzie - 5
Nays: None
1
Police & Fire Retirement System
February 20, 1990
Trustee Benavides arrived at 8 : 44 A.M.
It was moved by Trustee McKenzie, supported by Trustee Hunnell that
the application for regular age and service for Douglas E. Pollard,
Police Dept. , 27 years 0 months service credit and age 50 ,
effective 3/13/90, be approved and that the Secretary make the
necessary transfer of funds.
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, &
McKenzie - 6
Nays: None
Mr. Duarte advised the Board that Mr. Wilson from Capital Bidco had
called and he indicated to Mr. Wilson that the Board did not wish
to have a presentation. The Secretary advised that Mr. Wilson
stated that the money will be invested in Lansing. Mr. Duarte
stated that he would actually invite Mr. Wilson if the Board so
desired. Chairperson Cushman asked Melvin McWilliams , Chief
Assist. City Attorney, other suggestions or concerns about not
having this interview and Mr. McWilliams reported that the
investments were going well and there was no need to be concerned.
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that the Board direct the Secretary to advise Capital Bidco that
the Board of trustees is declining a presentation on this
investment area.
Adopted by the following vote: Unanimously.
Update on Eric Stevens, Duty Disability Retiree' s Insurance. Mr.
Duarte informed the Board that 1) another registered letter had
been sent to Mr. Steven' s and that he did not pick up the letter
from the post office, 2 ) sent a personal letter to his house giving
notice that he must continue to pay additional for health care
insurance, and 3 ) he is not receiving a pension check at this time.
Discussion was held.
It was moved by Trustee McKenzie, supported by Trustee Hunnell that
the Board direct the Secretary to send a communication to Mr. Eric
Stevens asking if he would consider meeting with someone in the
Retirement Office or a Retirement Board member representing the
Fire Department so that they might review the necessary forms that
need to be filled out for the Duty Disability earnings statements.
Adopted by the following vote: Unanimously.
The Secretary updated the Board on the Duty Disability Retiree' s
reporting of prior years earnings. Mr. Duarte stated that the
deadline for filing was February 28, 1990 . He advised that a
letter was mailed to 11 people and 3 individuals responded, Gary
2
Police & Fire Retirement System
February 20, 1990
Chapman, John D. Collins & Richard Cortright, and that we are
awaiting a response from 8 duty disability retirees. It was
mentioned that there has been no further word from Mr. Donahue &
Mr. Isaac.
Mr. Duarte updated the Board on pre-funding of health care stating
that a letter had bey-`sent to the Council advising of negotiations
and that he had a discussion with several of the union leaders last
Thursday from Police and Fire, and that he is awaiting information
from the Mayor' s Office.
Trustee Barkyoumb asked Melvin McWilliams, Chief Assist. City
Attorney, if he had any additional information on the Donahue &
Isaac case. Mr. McWilliams apprised the Board members that he had
requested Mr. Don Isaac' s deposition along with providing some
dates and copies of other items. Also, Mr. McWilliams stated that
Mr. Boughton, attorney, wants to review some of the City's
documents including years earnings for Police Department
Detectives.
The Board inquired as to what point the Ways and Means Committee
was at concerning items on prefunding of health care and aklincrease
in retirees pensions. Mr. Duarte advised that the Ways & Means
Committee was trying to gather additional information and that
these items were still on hold. Also Mr. Duarte stated that both
of these items should be dealt with at the same time. Chairperson
Cushman informed the Board that the prefunding of health care is
directly related to the pension and that there are other issues to
deal with such as duty and non-duty disability retirees. The
Secretary supported that statement. The Chairperson added that
the Board had approved increases for the retirees in 1984, 1987 and
1988. Discussion was held.
It was moved by Trustee McKenzie, supported by Trustee Barkyoumb
that as a Board we are pursuing the prefunding of health care issue
until such time that the issue is satisfied and the Board is not
making recommendations for any pension increase.
Adopted by the following vote: Unanimously.
The Secretary reported to the Board that today Hal Rossen of
Prudential-Bache would be giving an update as of December 31, 1989
on the performance measurement services.
Trustee Hunnell asked about the proposals on the buying back of
service credit time. Mr. Duarte advised that. this item had been
re-introduced to the Ways and Means Committee, that he was awaiting
direction from the Mayor, Labor Relations, etc. , and is on hold,
and further that letters have been written on the prefunding of
health care and the buy back of service credit for both systems.
3
Police & Fire Retirement System
February 20 , 1990
It was moved by Trustee Hunnell, supported by Trustee McKenzie that
the Board excuse Trustee Luzynski and McKane from the Board
meeting.
Adopted by the following vote: Unanimously.
Doug Rubley distributed a copy of the portfolio summary from the
National Bank of Detroit for funds evaluation as of January 31,
1990 , and presented an overview of the transactions by the outside
money managers. Mr. Rubley informed the Board that the City is
holding, in house, $2.,600,000 in assets for 6 months and that he a
will report next month on a specific recommendation.
Trustee Benavides left the meeting at 9: 45 A.M.
Mr. Rubley advised that there was a class action law suit (United
States District Court-District of Massachusetts) against Digital
Equipment Corp. Doug stated that it is not necessary for us to
respond rather that he only wanted to report to the Board this
action.
Mr. Rossen of Prudential-Bache distributed booklets to the Board
members on performance measurement services and gave a
presentation. Also, he handed out articles on. re: "Value Investing
Isn't Guaranteed Winner" from the Wall Street Journal, "A Case for
Global Diversification" , and "A Sitting Bull" from Forbes.
Hal Rossen also had available for the Board members to examine a
new micro telephone by Motorola. He stated that it would work 7
hours with one battery or 2 1/2 hours of talking time and the
approximate price was $1,500.
Trustee Benavides returned to the meeting at 10: 01 A.M.
Mr. Duarte inquired if there was anything on the horizon that the
Board should be talking about that might be recommended by
Prudential-Bache. Mr. Rossen mentioned that he was happy with the
portfolio since meeting our current investment goals and the Board
may desire to wait another year before making any other investment
venture. He did add, however, that the Board might consider puting
some monies into international stocks.
Discussion was held on investing in global funds and Mr. Rossen
advised he will return with information on how the Board might
approach global operations in this type of a market.
Also discussion was held concerning the possibility of bringing in
the 4 money managers in April or May to give there normal
presentations and then to address the Board on global investing.
4
Police & Fire Retirement System
February 20, 1990
Mr. Rubley stated that if he could acquire any literature ahead of
time he would forward it on through the mail to the Board. There
will -.be more information on this at the March Board meeting.
Short discussion was held concerning the recommendation of the
Joint Board meeting of February 6 , 1990, re: "that based on the
two presentations on asset allocation and the restrictions on the
legal types of real estate products that we may utilize, that a
recommendation to exclude current real estate options as an
investment vehicle be taken back to the respective retirement
boards. "
It was moved by Trustee Barkyoumb, supported by Trustee Hunnell
that this Board does not pursue supporting real estate investing
at this time.
Adopted by the following vote: Unanimously.
The Meeting Adjourned at 10: 45 A.M.
Stephen W. Duarte, Secretary
Police & Fire Retirement System
5
DEVISED MINUTES
OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting of January January 16 , 1990
8th Floor Conference Room Tuesday, 8 : 35 A.M.
City Hall
Lansing, Michigan
The Board of Trustees met in regular session and was called to
order by the Chairperson, Jack Cushman, at 8 : 35 A.M.
Present: Trustee Benavides, Barkyoumb, Cushman, Goodin, Hunnell,
Luzynski , McKane and McKenzie - 8
Absent: None
Present: Stephen W. Duarte, Secretary; Jan Lazar, Acting
Secretary; Lesley Ann Seldenright, Ruby White & Doug
Rubley, Finance Dept. ; Melvin McWilliams , Chief Assistant
City Attorney; John Richard, J. Craig Gleason, & Don
Knechtel, Police Dept. and Paul Hufnagel, Fire Dept.
Chairperson Cushman passed the gavel to Vice-Chair Hunnell in order
that he might make a clarification to the minutes of December 12 ,
1989 , before adoption. Trustee Cushman stated that the Board
supported the prefunding of health care, however, did not vote to
approve the original draft as presented to them. They did approve
the draft being sent to Council and the unions simultaneously. It
was Trustee Cushman` s understanding that the Board, Unions, and
Council would have an opportunity to recommend changes . They found
that a second draft was printed without Board review, sent to the
Council and, at a later date, to the bargaining units . Discussion
was held.
It was moved by Trustee Barkyoumb, supported by Trustee McKenzie
that the minutes of the December 12 , 1989 , meeting be approved as
amended for the purpose of clarification.
Adopted by the following vote: Unanimously.
The gavel was returned to Chairperson Cushman.
The Secretary reported 13 new members , 0 reinstatements ; 0 refunds
and 1 retired. Total Membership: 549. Refunds made since the last
regular meeting amounted to $ . 00 . Retirement allowances paid for
the month of December 1989 amounted to $430 , 503 . 06 .
Mrs. White, Retirement Technician, indicated to the Board that she
may come back to the Board with some corrections to the refunds .
1
Corrected minutes)
1 paragraph the word
and changed to an
Police. & Fire Retirement System
January 16 , 1990
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Harold E. Finney, Fire Dept. , 26 years 4 months service credit, and
age 53 , effective 1/6/90, be approved and that the Secretary make
the necessary transfer of funds. .
Adopted by the following roll call vote:
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
McKane & McKenzie - 8
Nays: None
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Donald J. Pricco, Fire Dept. , 25 years 2 months service credit, and
age 48 , effective 1/8/90, be approved and that the Secretary make
the necessary transfer of funds.
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski ,
McKane & McKenzie - 8
Nays: None
It was moved by Trustee Barkyoumb, supported by Trustee Luzynski
that the application for regular age and service retirement for
Rodney R. Ray, Fire Dept. , 34 years 3 months service credit, and
age 59, effective 1/11/90 , be approved and that the Secretary make
the necessary transfer of funds.
Yeas: Benavides, Barkyoumb, Cushman, Goodin, Hunnell, Luzynski,
McKane & McKenzie - 8
Nays : None
Mrs. Lazar, Acting Secretary, informed the Board that Mr . Duarte,
Secretary, had available the information on item ( 7 ) Bidco; and
that no action is to be taken at this time.
Update on Eric Stevens , Duty Disability RetireessIs insurance. Mrs.
White advised that Mr . Stevens had not picked up his registered
letters (which is an out-of-town post office box) mailing address ,
therefore, his pension checks are being stopped. Mr. Stevens does
have medical insurance at this time. Discussion was held. Trustee
McKane suggested that Mr. Stevens might be called or a letter sent
directly to his home address. No action at this time.
As an update to the Board on the Duty Disability retiree ' s
reporting of prior years earnings , ( 1985 , 1986 and 1987 ) and the
certified letters being mailed, Ms. Lazar stated that the deadline
for filing the prior years earnings has been set for February 28 ,
1990. This led to discussion by the Board re: the request by the
disability retirees that they be furnished with the earnings, for
the rank they held, as requested by the Board. Further discussion
was held about reporting in advance the allowable earnings , prior
2
Police & Fire Retirement System
January 16 , 1990
to offset, for the disability retiree ' s and the problems associated
with this type of reporting. The Board' s general consensus was
that the duty disability retiree could use the prior year ' s figure
and after the contract was settled let the duty disability retiree
make changes on their own. Discussion was held and Mrs. Lazar
explained to the Board how the City' s calculations might work to
recoup an over-earnings for a duty disability retiree for a
particular year. Chairperson Cushman asked Mrs. White to review
this issue and return to the Board with further information.
The Secretary, Mr . Duarte, arrived at the Board meeting.
Melvin McWilliams stated that the City was in court presently with
respect to the Donahue & Isaac case, and if the Board wanted to
pursue a change in the earning rules (instead of the one-twelfth
of the excess each month being held from the duty disability
retiree' s check) the Board should wait until after court action is
completed then appeal to Council for a change to so call "soften
the blow" .
Chairperson Cushman again passed the gavel to Vice-Chair Hunnell
so that Trustee Cushman might present to the Board 2 letters re:
changing the ordinance to establish a health care fund within the
retirement system. One letter was from Paul Hufnagel, President,
Lansing Fire Fighters Local #421 to Richard Putney, Director of
Labor Relations, in reference to Mr. Duarte ' s letter of January 9 ,
1990 in which he advised the City' s proposal to make changes in the
pension system, and the second letter was from Chairperson Cushman
to the Police & Fire Board recommending 5 points for better
communication between the Board Secretary and the Trustees.
Discussion was held.
Trustee McKane asked if the Board would consider voting separately
on items number 4 and 5 of the letter, and the Board agree(f. Also,
Trustee McKane asked Melvin McWilliams , Assist. City Attorney, re:
1) is the City required to negotiate specific items at the
bargaining table, and Mr. McWilliams answered No; and 2 ) is the
City prohibited to negotiate at the bargaining table, and Mr.
McWilliams answered No.
it was moved by Trustee Cushman, supported by Trustee McKane that
the Board approve the first 3 items from Chairperson Cushman' s
letter re: 1) All future correspondence relating to Police and Fire
Pension System sent or received from City Council be directed to
the trustees ; 2 ) All future correspondence relating to Police and
Fire Pension System sent to or received from legal council be
directed to the trustees ; and 3 ) All future correspondence relating
to Police and Fire Pension System sent to or received from
appropriate bargaining units be directed to the trustees.
3
r •
police & Fire Retirement System
January 16, 1990
Adopted by the following vote: ' Unanimously.
It was moved by Trustee Cushman, supported by Trustee Luzynski that
the Board approve Item #4 from Chairperson Cushman' s letter re: All
respective bargaining units be given an opportunity to negotiate
-prefunding of health- care.
Adopted by the following roll call vote:
Yeas: Benavides, Cushman, Hunnell, Luzynski, McKane & McKenzie-
6
Nays Barkyoumb & Goodin - 2
Discussion was held on item #5 and Trustee McKenzie suggested that
the Board clarify the language in Item #5 by; 1) adding the word
,,potential" before negotiations , and 2) the words "regarding
prefunding of health care" . The Board agreed.
It was moved by Trustee McKane, supported by Trustee Barkyoumb that
the Board approve Item #5 from Chairperson Cushman' s letter re: The
City Council receive a communication from the Board informing them
of potential negotiations regarding prefunding of health care
between bargaining units and City of Lansing Labor Relations Dept.
Adopted by the following vote: Unanimously.
The gavel was returned to Chairperson Cushman.
Trustee McKane left the meeting at 10 : 25 A.M.
Melvin Mcwilliam advised the trustees that he has a legal opinion
prr;pared and will provide it to the Board re: use of "Basket
Clause" for real estate investments. Mr. McWilliams stated that
the "basket clause" (MCLA 38 . 1140(d) cannot be utilized by the
City' s retirement systems to invest in real property or interests
in real property since such investments are specifically authorized
investments only for - retirement systems having at least
$250 , 000 , 000 in assets. In this regard, this office concurs with
the opinion of the Attorney General wherein the Attorney General
coricludes ,that a retirement. system having assets of less than
$250 , 000, 000 cannot invest in real estate limited partnerships.
However, even though the "basket clause" cannot be used for direct
real estate investments but investments in certain small businesses
and small business investment companies pursuant to MCLA 38 . 1140 ( a)
could include investments in real estate limited partnerships.
However, to pursue such investments, the City' s retirement systems
would have to join with other public retirement systems, ERISA
qualified retirement systems , financial institutions, corporations,
or governmental agencies or instrumentalities having combined
assets of $250 , 000 ,000 , and would be limited to investing two
percent ( 20) of their assets in such businesses.
. 4
r
Police & Fire Retirement System
January 16, 1990
Other Business. Mr. Duarte stated that Hal Rossen of Prudential
Bache called and thought we were going to continue our joint
meeting on asset allocation and suggested holding a joint
retirement board meeting on February 6 or February 7. He would
bring back ideas on real estate, mortgage or Reits and how they
might fit in. The Board suggested February 7th for the joint board
meeting. A public meeting notice will be mailed after the Employees
Retirement System Board meets for approval on this date.
Mr. Duarte informed the Board that he had been approached by
Capital Bidco. Bidcos are newly created investment vehicles
approved by state legislation for the purpose of helping to meet
financing and other needs of small businesses. Mr: Duarte stated
this was a direct investment similar to a venture capital fund.
After discussion, the Board agreed that, at this time, they are not
interested in these investment vehicles.
Mr. Doug Rubley distributed a copy of the portfolio summary from
the National Bank of Detroit for funds evaluation as of December
31, 1989 , and presented an overview of the transactions by the
outside money managers. Mr. Duarte advised that Mr. Rubley had
added two new sheets to the portfolio summary for the purpose of
communicating better with the Boards, unions , etc. re: 1) Asset
Summary sheet and 2 ) In-House Cash and Investment sheet.
The Meeting Adjourned at 10: 57 A.M
Stephen W. Duarte, Secretary
Police & Fire Retirement System
5