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HomeMy WebLinkAbout7.15.25 Employees Retirement System MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES’ RETIREMENT SYSTEM MEETING MINUTES Regular Meeting July 15, 2025 10th Floor Conference Room Tuesday, 9:30 a.m. The meeting was called to order at 9:31 a.m. Present: Trustee Bahr, Dedic, Ebright, Kalis, O’Leary, Sanchez-Gazella, Schor, Thomas – 8. Absent: Garza, Jeffries (Excused) Others present: Karen E. Williams, Thomas Lindemann, Human Resources Department, City Attorney Joseph Abood, City Attorney’s Office; Attorney Aaron Castle, VanOverbeke, Michaud and Timmony; Nathan Burk, Patrick Miller (via phone), Asset Consulting Group. It was moved by Trustee Dedic and supported by Trustee Kalis to approve the Official Minutes of the Employees’ Retirement System Board meeting of June 17, 2025, with corrections. Adopted by the following vote: 8 – 0. There were no public comments for items on the agenda. Secretary’s Report: 8 new members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 420. Total deferred: 67; 0 Death(s); Refunds made since last regular meeting amounted to $92,262.44. Retirement allowances for the month of June 2025 amounted to $2,028,724.03. Total retirement checks printed for ERS System: 913. Total retirement checks printed for both systems: 1742. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no requests for Regular Age and Service Retirement. Karen Williams reported a request for duty disability application #2024-E0724. The request for duty disability was referred to the disability subcommittee. The Employees’ Retirement System Board recessed at 9:37 am to allow the disability subcommittee to meet. The Employees’ Retirement System Board resumed at 9:40 a.m. It was moved by Trustee Kalis and supported by Trustee O’Leary to send Applicant #2025-E0715 to be evaluated by the Board’s medical director for duty disability. Adopted by the following vote: 8 – 0. Karen Williams reported that the Retirement Office was waiting for documentation from Applicant #2024-E0724 request for duty disability. Employees’ Retirement System July 15, 2025 Meeting Minutes Tuesday, 9:30 a.m. Page 2 There were no requests for non-duty disability. It was moved by Trustee Kalis and supported by Trustee Ebright to approve the following requests for refunds of accumulated contributions: Marjan Sakhi, (NonBargaining) Not-Vested $9253.30 James Harries (District Court Non-Represented), Not vested $9249.78 Adopted by the following vote: 8 – 0. Karen Williams reported the upcoming MAPERS Fall Conference, September 13 -16 in Grand Rapids. Karen Williams reported on the upcoming NCPERS Fall Conference, October 26-29 in Florida. Karen Williams reported that each year, per City Council resolution, every member of a board or commission, authorized by city ordinance or the city charter, shall obtain training on the ethics ordinance, conflicts of interest and the Open Meetings. City Council has provided a 20-minute informative video that members are required to review. The following trustees have watched the Open Meetings Act/Ethics Ordinance video: Bahr, Dedic, Ebright, Garza, Jeffries, Kalis, O’Leary, Sanchez-Gazella, Schor, Thomas, Staff: Lindemann, Williams Karen Williams reported that Trustees Garza and Jeffries contacted the Retirement Office and requested to be excused from the meeting. It was moved by Trustee Dedic and supported by Trustee Kalis to excuse Trustee Garza, and Trustee Jeffries from the July 2025 meeting. Adopted by the following vote: 8 -0. , There were no public comments for items not on the agenda. Ms. Williams provided the following May invoices for approval: from Segal Insurance, $9,557, Asset Consulting Group, $21,768; Tegrit, $15,395.73. It was moved by Trustee Bahr and supported by Trustee Ebright to pay the July invoices for the Employees’ Retirement System Board. Adopted by the following vote: 8 - 0. Northern Trust sent information regarding their class action securities litigation. Northern Trust plans to enhance those class action services to expand coverage globally. Northern Trust clients will be automatically enrolled in the new service. There will be a fee increase associated with this enhancement. Employees’ Retirement System July 15, 2025 Meeting Minutes Tuesday, 9:30 a.m. Page 3 Karen Williams reported that with the departure of Dennis Parker whose term expired, the Employees’ Retirement System would need to nominate and elect new Board Officers. It was moved by Trustee Dedic and supported by Trustee Ebright to nominate and elect Matthew Bahr as chairperson of the Employees Retirement System Board. Matthew Bahr accepted the nomination Adopted by the following vote: 8 – 0. It was moved by Trustee Ebright and supported by Trustee O’Leary to nominate and elect Darren Kalis as vice chairperson of the Employees’ Retirement System Board. Darren Kalis accepted the nomination. Adopted by the following vote: 8 -0. Karen Williams provided the following Employees Retirement System subcommittee membership: Disability Committee: Kalis, O’Leary, Bahr Investment Committee: Bahr, Dedic, Ebright, Thomas Education Committee: Garza, Ebright, Sanchez-Gazella, Jeffries Special Projects: Dedic, Ebright, Jeffries, Sanchez-Gazella, Ex-officio Legal Counsel. Thomas Lindemann provided a report regarding the duty disability income verification. Mr. Lindemann confirmed that all disability retirees had reported their income verification. It was moved by Trustee Bahr and supported by Trustee Ebright to accept the election results and declare Mr. Darren Kalis a Trustee member for the term ending June 30, 2029. Adopted by the following vote: 7 -0. Mr. Thomas Lindemann provided an update of the duty disability income verifications for the Employees Retirement System. Mr. Lindemann indicated that there were 2 members who had not reported as of the deadline, April 30, 2025. Mr. Lindemann will send out a second letter and if there has still not been a response, the Retirement Office will provide a list of disability recipients who would be subject to pension suspension at the July meeting. Attorney Castle updated the Employees’ Retirement System that per the Board’s policies, each vendor is reviewed on a periodic basis. Attorney Castle reviewed the request for proposal and discussed the actuarial audit section. The actuarial audit would be an independent actuary to review the work product, assumptions and the processes to ensure these items are reasonable under actuarial standards. The audit was a part of the guidelines for PA 202 from the Michigan Department of Treasury that were being finalized. The draft guidelines indicated that only OPEB/health care plans were subject to the Peer actuarial audit process. Attorney Castle reviewed the tentative timeline for the request for proposals. The proposals would be due in August, and the Board could review the proposals in September with decisions made in November. Trustee Dedic inquired if there was a different fee schedule for Employees’ Retirement System Board. Attorney Castle indicated that there could be different fees for the ERS Board and the Police and Fire Retirement System Board. Attorney Castle asked in the proposal if there were discounted fees for providing services to both boards. Attorney Castle provided an updated Authorized Signers Resolution for the Employees Retirement System Board. It was moved by Trustee Schor and supported by Trustee Ebright to adopt and amend the Authorized Signers Resolution. Adopted by the following vote: 8 -0. Mr. Nathan Burk and Mr. Patrick Miller reviewed the Monthly Investment Report for the month ending June 30, 2025. It was moved by Trustee Ebright and supported by Trustee Bahr to adjourn the Employees’ Retirement System July meeting. Adopted by the following vote: unanimous. The meeting ended at 10:21 a.m. Minutes approved on 8/19/2025. ________________________ Crystal Thomas, Secretary Employees’ Retirement System _____________________________ Matthew Bahr, Chairperson Employees’ Retirement System