HomeMy WebLinkAbout2.18.25 Employees Retirement System MinutesCITY OF LANSING
JOINT EMPLOYEES’ RETIREMENT SYSTEM
And POLICE AND FIRE RETIREMENT SYSTEM
MEETING MINUTES
Joint Meeting Minutes February 18, 2025
10th Floor Conference Room Tuesday, 8:30 a.m.
The meeting was called to order at 8:32 a.m.
Trustees present: (ERS) Dedic, Ebright, Garza, Jeffries, Kraus, O’Leary (8:52), Parker,
Schor (8:36am), Thomas (8:43) – 9
(Police & Fire) Garza, Kreft, Moore, Schor (8:36 am), Thomas (8:43), Wilcox, Wohlfert
– 7
Excused: (ERS), Bahr
Excused: (Police & Fire), Taylor
Others present: Karen Williams, Thomas Lindemann, Human Resources Department,
Attorney Aaron L. Castle, VanOverbeke, Michaud & Timmony, P.C., and Mr. Nathan
Burk, Asset Consulting Group.
Karen Williams reported that Trustee Taylor contacted the Retirement Office and requested
that she be excused from the February Joint Meeting.
It was moved by Trustee Wilcox and supported by Trustee Kreft to excuse Trustee Taylor
from the February Joint Meeting for the Police and Fire Retirement System.
Adopted by the following vote: 5 - 0
It was moved by Trustee Ebright and supported by Trustee Dedic to excuse Trustee Bahr
from the February Joint Meeting for the Employees’ Retirement System.
Adopted by the following vote: 6 – 0.
It was moved by Trustee Wilcox and supported by Trustee Garza to approve the Official
Minutes of the Police and Fire Retirement System Board meeting of January 21, 2025.
Adopted by the following vote: 5 – 0.
It was moved by Trustee Ebright and supported by Trustee Jeffries to approve the Official
Minutes of the Employees’ Retirement System Board meeting of January 21, 2025, with
corrections.
Adopted by the following vote: 6 – 0.
Joint Minutes February 18, 2025
Page 2 Tuesday, 8:30 a.m.
There were no public comments for items on the agenda.
Secretary’s Report (Police & Fire):
0 sworn police/fire member(s), 0 reinstatements(s), 0 refund(s), 0 transfer(s),
1 retired. Total: Active membership 328. 1 Death(s): David Taylor (Retired
IAFF) Retired 4/7/1990, died 2/11/2025, age 87, NO Surviving Beneficiary;
Refunds made since last regular meeting amounted to $22,214.10.
Reimbursements to the System year-to-date amount to $0.00. Retirement
allowances for the month of January 2025 amounted to $3,448,402.25. Total
retirement checks printed for P&F System 823. Total retirement checks printed
for both systems: 1749. Domestic relations orders received: 0. Domestic
relations orders pending: 0. Eligible Domestic Relations Order Certified: 0
Secretary’s Report (Employees’ Retirement System):
0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total
active membership: 409. Total deferred: 67; 3 death(s) Clara Beard,
Beneficiary Retiree (Spouse of retired UAW), died 1/10/2025, age 99; Kathryn
Brigham, Non-Bargaining CTP, retired 12/1/1982, died 01/12/2025, age 98,
NO Surviving Beneficiary; Raymond Feldpausch, (Non Bargaining
Supervisor), retired 1/6/1991, died 1/4/2025, NO Surviving Beneficiary
Refunds made since last regular meeting amounted to $77,186.48.
Retirement allowances for the month of January 2025 amounted to
$2,069,463.66. Total retirement checks printed for ERS System: 926. Total
retirement checks printed for both systems: 1749. Eligible domestic relations
orders received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
Karen Williams reported that Mr. Sorg has requested a change in his retirement date. The Police
and Fire Retirement System has approved the retirement in the January meeting.
Attorney Castle indicated that the Board could reconsider and withdraw the application provided
that the employee had not received his pension payments.
It was moved by Trustee Moore and supported by Trustee Kreft to reconsider and withdraw the
following applicant for Regular Age and Service Retirement of the Police and Fire Retirement
System:
Brent Sorg, (CCLP Supervisory), 25 years of service, Age 50, Effective
2/14/2025, Sworn Date 3/13/2000
Adopted by the following vote: 6 – 0.
Joint Retirement Minutes February 18, 2025
Page 3 Tuesday, 8:30 a.m.
It was moved by Trustee Wilcox and supported by Trustee Moore to approve the following
applicant for Regular Age and Service Retirement of the Police and Fire Retirement System:
Brent Sorg, (CCLP Supervisory), 25 years of service, Age 50, Effective
2/15/2025, Sworn Date 3/13/2000
Adopted by the following vote: 7 – 0.
It was moved by Trustee Kraus and supported by Trustee Ebright to approve the following
applicants for Regular Age and Service Retirement of the Employees’ Retirement
System:
Gayle Greathouse (District Court, Teamsters 243), 22 years 2 months of
service, age 58, effective 3/1/2025.
Adopted by the following vote: 9 – 0.
Karen Williams reported that the Retirement Office had sent a request for Applicant
#2024-E0718 medical release and documents and was waiting for the documents.
There were no requests for Non-Duty Disability Retirement for the Police and Fire
Retirement System.
There were no requests for Non-Duty Disability Retirement for the Employees’ Retirement
System.
Ms. Williams reported that Mr. Jonathan Bynum, CCLP was not vested and had requested a refund
of his accumulated contributions of $27,401.66 from the Police and Fire Retirement System.
It was moved by Trustee Moore and supported by Trustee Wilcox to approve the following
requests for refund of accumulated contributions from the Police and Fire Retirement System:
Johnathan Bynum, CCLP Nonsupervisory, not vested, $27,401.66.
Adopted by the following vote: 7-0.
There were no requests for refunds of accumulated contributions for the Employees’ Retirement
System.
Trustee Antonia Kraus requested an update regarding the 1099Rs issue with the new BS &A software.
Trustee Kraus expressed concern that many retirees had been issued incorrect 1099Rs and some retirees
have not received their 1099Rs. The problem had not been corrected.
Ms. Kirkland indicated that the Finance Department was aware of the issues and were working to provide
correct 1099Rs to retirees. Ms. Kirkland explained that 1099Rs from previous years were incorrect. Ms.
Kirkland indicated that other issues arose due to retirees who had letters of exclusion.
Joint Retirement Minutes February 18, 2024
Page 4 Tuesday, 8:30 a.m.
Trustee Kraus requested that a letter be sent to retirees explaining the issues regarding the 1099Rs.
Ms. Williams reported the Police and Fire Retirement System invoices for February: Income Research +
Management, $14,346.56; VanOverbeke, Michaud and Timmony, P.C., $2,733.60 with itemized services
for the 4th quarter; and PBI, $2,000.
It was moved by Trustee Wilcox and supported by Trustee Moore to approve the Police and Fire
Retirement System invoices for February 2025.
Adopted by the following vote: 7 – 0.
The Police and Fire Retirement System Board agreed to the following subcommittees for 2025:
Disability: Wilcox, Taylor, Moore, Wohlfert
Investment: Thomas, Wohlfert, Moore, Wilcox
Education: Taylor, Kreft, Garza, Thomas
Special Projects: Moore, Wohlfert, Thomas, Ex-Officio Legal Counsel
It was moved by Trustee Wilcox and supported by Trustee Moore to approve the Police and Fire
Retirement System Budget for 2025.
Adopted by the following vote: 7 -0.
Ms. Williams reported the Employees’ Retirement System invoices for February: Income Research +
Management, $8,718.94, VanOverbeke, Michaud & Timmony, P.C., $2,030.10 with itemized services for
the 4th quarter; and PBI, $2,000.
It was moved by Trustee Ebright and supported by Trustee Kraus to approve payments for the Employees’
Retirement System invoices for February 2025.
Adopted by the following vote: 9 - 0.
The Employees’ Retirement System Board agreed to the following subcommittees for 2025:
Disability: Parker, O’Leary, Bahr
Investment: Dedic, Parker, Thomas
Education: Dedic, Garza, Ebright, Jeffries
Special Projects: Bahr, Garza, Ebright, Jeffries, Ex-Officio Legal Counsel
It was moved by Trustee Ebright and supported by Trustee Dedic to approve the Employees’
Retirement System Budget for 2025.
Adopted by the following vote: 9 -0.
Joint Retirement Minutes February 18, 2024
Page 5 Tuesday, 8:30 a.m.
Attorney Castle reviewed the securities litigation policies renewal procedures from Segal for the retirement
boards.
It was moved by Trustee Wilcox and supported by Trustee Moore to approve the securities litigation policy
renewal for the Police and Fire Retirement System Board.
Adopted by the following vote: 7 – 0.
It was moved by Trustee Ebright and supported by Trustee Dedic to approve the securities litigation policy
renewal for the Employees’ Retirement System Board.
Adopted by the following vote: 9 – 0.
Attorney Castle provided the service provider review schedule. The Joint Boards are scheduled to review
its Actuarial services. Attorney Castle stated Public Act 202 required that the actuary be replaced every
eight years or that the Board would have a peer actuarial audit. Attorney Castle reviewed that the Boards
would decide what type of review was needed. Attorney Castle recommended that if a Request for Proposal
(RFP) was done for actuarial services, that it would include costs for peer actuarial audit services.
Trustee Dedic indicated that there were several levels of audit and inquired if the Michigan Department of
Treasury provided any direction on what type of peer actuarial audit services.
Attorney Castle indicated that the RFP could request costs for each level of peer actuarial audit services.
It was moved by Trustee Dedic and supported by Trustee Garza to direct Attorney Castle to prepare a
Request for Proposals for actuarial services for the Employees’ Retirement System Board.
Adopted by the following vote: 9- 0.
It was moved by Trustee Moore and supported by Trustee Wilox to direct Attorney Castle to prepare a
Request for Proposals for actuarial services for the Police and Fire Retirement System Board.
Adopted by the following vote: 7 -0.
Karen Williams provided a report from Tegrit that the support and maintenance was used to upgrade the
outdated platform and the integration of the City’s financial package, BS&A. The report indicated that
extra hours that were provided have been exhausted through the upgrade. The Boards requested that Tegrit
provide an itemized list of updates for the Retirement Boards.
Karen Williams reported that the Board chairs were sent training videos from Northern Trust to set up
accounts for the retirement boards to pay bills and forms for online banking.
Mr. Burk reviewed the Employees’ Retirement System and The Police and Fire Retirement System Asset
Allocation. He reviewed the portfolio’s goals and objectives and revisited and confirmed strategic asset
allocation targets and expectation of continued uncertainty and focus on the longer term. Mr. Burk
explained changes in Asset Consulting Group assumptions regarding valuations and yields.
Mr. Burke recommended to reduce strategic targets of 3% from Emerging markets to reallocate to
International Developed Equity.
Joint Retirement Minutes February 18, 2024
Page 6 Tuesday, 8:30 a.m.
It was moved by Trustee Wilcox and supported by Trustee Moore to reduce strategic targets from
Emerging markets to reallocate to International Developed Equity for the Police and Fire Retirement
System.
Adopted by the following vote: 7-0
It was moved by Trustee Ebright and supported by Trustee Dedic to reduce strategic targets from
Emerging markets to reallocate to International Developed Equity for the Employees’ Retirement System.
Adopted by the following vote: 9-0
Mr. Nathan Burk referred to the Market Snapshot of the 4th Quarter Investment report. Mr. Burk
discussed the financial performance of the Employees’ Retirement System and the Police and
Fire Retirement System for the period ending December 31, 2024. Mr. Burk reviewed current
market environment and discussed the inflation, risk, and interest rates.
It was moved by Trustee Moore and supported by Trustee Kreft to adjourn the Joint Retirement System
Board meeting for the Police and Fire Retirement System.
Adopted by the following vote: unanimous.
It was moved by Trustee Ebright and supported by Trustee Kraus to adjourn the Joint Retirement System
Board meeting for the Employees’ Retirement System.
Adopted by the following vote: unanimous.
The Meeting adjourned at 9:46 a.m.
Minutes approved on 3/18/2024.
________________________
Desiree Kirkland, Secretary
_____________________________ __________________________
Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson
Employees’ Retirement System Police and Fire Retirement System