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HomeMy WebLinkAbout1992 Employee's Retirement System Board MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for January January 23, 1992 8th Floor, Conference Room Thursday 8:38 A.M. City Hall Lansing, Michigan Present: Trustee Benavides, Brewington, Goodin, Moye, Perdue, Pontz and White - 7 Absent: Trustee McKane - 1 Present: Stephen W. Duarte, Secretary; 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 Pontz, supported by Trustee Goodin that the Board re-elect Trustee White as Chairperson to the Employees Retirement System Board of Trustees for the calendar year 1992. Adopted by the following vote: Unanimously It was moved by Trustee Benavides, supported by Trustee Goodin that the Board re-elect Trustee Moye as Vice -Chairperson to the Employees Retirement System Board of Trustees for the calendar year 1992. Adopted by the following vote: Unanimously. It was moved by Trustee Moye, supported by Trustee Perdue that the minutes of the regular meeting for December 12, 1991 and joint board meetings for December 10, 1991 and December 12, 1991, be approved. Adopted by the following vote: Unanimously The Secretary reported 5 new members, 0 reinstatements, 1 refund, 0 transfers and 0 retired. Total Membership: 836. Refunds made since the last regular meeting $1,517.06. Retirement allowances paid for the month of December, 1991 amounted to $282,285.88, total number of retirement checks printed ERS 461, total retirement checks printed for all three systems 850. Trustee Brewington arrived -at 838 A.M. Trustee White stated, in reference to the letter from Mr. Duarte to the widow of Judge Charles N. Murphy re: pension and health care, 1 Employees Retirement System January 23, 1992 that she had received a call from Mr. Chris Bergstrom which she assumed may be Ms. Teresita Murphy's attorney, inquiring as to the number of retired judges covered through the City of Lansing's health care, and Ms. White indicated that she referred Mr. Bergstrom to Mr. Duarte, Secretary to the Board. It was moved by Trustee Benavides, supported by Trustee Perdue that the application for Regular Age and Service for Melbourne Pepper, Public Service-0 & M, 29 years 1 month service credit, age 58, effective February 22, 1992, be approved and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Brewington, Goodin, Moye, Perdue, Pontz and White - 7 Nays: None Discussion was held concerning the approval of the EDRO (Eligible Domestic Relations Order) procedures. Questions arose as to how much the Board needed to be involved in each EDRO other then giving approval for the distribution and transfer of money. Mr. McWilliams, Chief Assist. City Attorney, advised that the Board would need to adopt the procedures and would need to be notified when the pension benefit commences to the alternate payee. Also, he indicated that, if perhaps, individuals are not happy with the decision on the order that they could get together with their attorneys to prepare an amended order. Mr. Duarte, Secretary, stated that he was comfortable with the procedures presented by the City Attorney's Office, however, that changes could take place, if necessary, at a later date. It was moved by Trustee Pontz, supported by Trustee Brewington that the Board adopt the EDRO procedures with the amendment, & that Mr. Duarte, Secretary, shall review with the City Attorney and actuary, and make a determination as to whether it is an eligible domestic relations order, and notify the Board of the determination. Adopted by'the following roll call vote: Yeas: Benavides, Brewington, Goodin, Moye, Perdue, Pontz and White - 7 Nays: None It was moved by Trustee Benavides, supported Trustee Moye that the Board receive and place on file the request for a Deferred Retirement for Patrick Lindemann, Council, to be eligible when age and service reaches 65 points. Adopted by the following vote: ,Unanimously. Discussion was held concerning 'the status of Don Brown, Public Service Dept., who deferred his retirement under the provisions of Act 88. Mr. McWilliams, Chief Assist. City Attorney, stated Mr. 2 Employees Retirement System January 23, 1992 Brown had left employment with the City in the 1970's and had received a letter from Mr. Dowsett, former Director of Finance and Secretary to the Board, incorrectly advising Mr. Brown when he was eligible to draw his pension under the reciprocal retirement act. It was moved by Trustee Pontz, supported by Trustee Goodin that the Board direct the Secretary to send a communication to Mr. Donald Brown advising him that he is eligible to draw his pension from the City of Lansing. Adopted by the following vote: Unanimously. Mr. Duarte advised the Board that he had just finished reviewing the language on the prefunding for health care and will be sending this information to Mr. McWilliams, Chief Assist. City Attorney, with a minor change for his review and, in addition, Mr. Duarte will be asking for a meeting with the Mayor, City Attorney and Labor Relations Director before sending this item on to the City Council. Trustee Moye inquired about the status of service credits while on worker's comp, and Mr. Duarte responded that the Mayor had recommended that this issue would more appropriately be handled through the collective bargaining process. Based on that recommendation this item was removed from the agenda of the Ways and Means Committee. It was moved by Trustee Benavides, supported by Trustee Goodin that Trustee McKane be excused from the Board meeting. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of December 31, 1991, and presented a brief overview of the transactions by the outside money managers. Mr. Rubley informed the Board that there was a cash contributions of $2,240,000 transferred to ANB Index Manager and that they were down 4.39% in November, but up 11.86% in December. He added that there was $68,660 of assets held in-house. Doug advised the Board that, 1) both the equity and bond market did extremely well this past month, 2) that M.D. Sass (Executive Life bonds were appealed and we will know more in approximately 60 days or more), 3) that the Board should take a look at Lazard Freres, value manager, in the next few months, etc. Mr. Duarte added that an active' equity manager will need to beat the S&P index by at least 100-200' basis points in order to be ahead of an index manager due to the fees and transaction costs. 3 Employees Retirement System January 23, 1992 In addition, Mr. Rubley stated that he had received 17 responses for the RFQ's for the Performance Evaluation Manager and will be narrowing them down to perhaps 5 of the most qualified firms for the Board to review. There will be an all day meeting for the purpose of reviewing these firms and will be held off -site so as not to tie up the conference room. Trustee Pontz inquired as to how much is to be taken away from each manager for monthly expenses and Mr. Duarte added that the current cash flow is utilized to meet the current cost each month from each manager. Mr. Rubley, also, added that we are looking at paying the cash contributions on a monthly basis instead of on an annual basis. The Meeting Adjourned at 9:40 A.M. W Stephen W. Duarte, Secretary Employees Retirement System 4 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for February February 20, 1992 8th Floor, Conference Room Thursday 8:36 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by the Chairperson, Ruby White, at 8:36 A.M. Present: Trustee Brewington, Goodin, McKane, Moye, Perdue, Pontz and White - 7 Absent: Trustee Benavides - 1 Present: Stephen W. Duarte, Secretary; 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 Perdue, supported by Trustee Moye that the minutes of the regular meeting for January 23, 1992, be approved as printed. Adopted by the following vote: Unanimously. The Secretary reported 0 new members, 0 reinstatements, 1 refund, 0 transfers and 4 retired. Total Membership: 827. Refunds made since the last regular meeting $2,377.40. Retirement allowances paid for the month of January, 1992 amounted to $283,703.21, total number of retirement checks printed ERS 464, total retirement checks printed for all three systems 856. Discussion was held concerning the request for a Non -Duty Disability Retirement for Gary R. Bain, Public Service Dept. Mr. Duarte advised the Board that Mr. Bain has signed the "Handicapper Reasonable Accommodation Policy and Policy to Assist Employees Who Become Handicappers" advising he declined to apply for reasonable accommodation. Trustee Brewington (Personnel and Safety Director) stated that our administrative role has been fulfilled. An appointment with the Medical Director has been made for Mr. Bain. Trustee McKane arrived at 8:47 A.M. A lengthy discussion was held concerning Mr. Ronald Cole, Parks Dept., selection of retirement, option, and 1) how the EDRO Law would apply to his pension, 2) the moral and legal obligation with respect to the rights of the estranged spouse, 3) whether the Board could legally postpone approval of the pension benefits, 4) past Employees Retirement System February 20, 1992 practice relative to the selection of a retirement date, 5) insurable interest relative to selection of options, etc. Mr. McWilliams, Chief Assistant City Attorney, advised that legally it is difficult to prove "Having an Insurable Interest". Further, in view of the fact that past practice does exist where Fiancee' s were nominated as beneficiary, any attempt by the Board to delay Mr. Cole's requested retirement could be construed to be discriminatory. The EDRO Laws, as written, would not apply as the order had not been filed prior to retirement. Mr. Cole has signed an acknowledgement which basically states, that he made a decision to select someone other than his lawful spouse, and that the system allows a beneficiary "having an insurable interest" in his life. This selection may be subjected to judicial review. Due to the fact that once he selects a beneficiary at date of retirement which cannot be changed, he has been advised to consult with his attorney. It was moved by Trustee Perdue, supported by Trustee Moye that the application for Regular Age & Service Retirement for: Gerald F. Nestell, Parks Department, 35 years 4 months service credit, effective February 29, 1992. Ronald E. Cole, Parks Department, 24 years 6 months service credit, effective February 8, 1992. be approved and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Brewington, Goodin, McKane, Moye, Perdue, Pontz and white - 7 Nays: None The Board discussed drafting a letter to be sent to all employees in the Employees' Retirement System, reaffirming the ordinance requirement of filing written application 30 to 90 days prior to retirement. In addition, since the Board is unable to require the spouse to sign off on the option selected due to conflicting legal opinions, they want to consider the possibility of adopting an administratively feasible policy to notify affected spouses of changes in designated beneficiary. These items are to be placed on the agenda for next month. Mr. Duarte addressed the item on Security Lending advising that the information presently is in.the•City Attorney's Office and that a contract needs to be drafted. Mr. Duarte stated that he will prepare a letter to Mr. Knot, City Attorney, and this item will be placed on next month's agenda. 2 Employees Retirement System February 20, 1992 Melvin McWilliams, Chief Assist. City Attorney, advised the Board that the case of Mr. Merle Lemon is still pending in the Court of Appeals concerning the Workers Compensation in relation to coordination of other benefits. It was moved by Trustee Perdue, supported by Trustee Moye that Trustee Benavides be excused from the Board meeting. Adopted by the following vote: Unanimously. The Secretary informed the Board that the Police and Fire Retirement Board has also adopted the EDRO procedures, with the amendments, in the same manner as the Employees Retirement Board has done. Mr. Duarte advised the Board that a Domestic Relations Order, was received by the Retirement Office for Mr. Earlie Peterson, Public Service Dept., and indicated that copies of the "Notice of Receipt of Domestic Relations Order" form had been mailed to 1) Mr. Earlie Peterson, participant, 2) Helen Peterson, alternate payee, and 3) attorneys for the parties. The Board was also given copies of this form. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of January 31, 1992, for the Board to review and, also, handed out two items: 1) article from Pensions & Investments magazine entitled "M.D. Sass faces outflow of assets, clients, and 2) memorandum to clients from Martin D. Sass. The Meeting Adjourned at 9:31 A.M. Stephen W. Duarte, Secretary Employees Retirement System JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS 8th Floor, Conference Room City Hall Lansing, Michigan February 20, 1992 Thursday 9:45 A.M. The Joint Board of Trustees meeting was called to order at 9:45 A.M. Present: Board Members: Barkyoumb, Braun, Brewington, Cushman, Goodin, Kuz, Luzynski, McKane, Moye, Perdue, Pontz & White - 12 Absent: Board Members: Benavides - 1 Present: Others: Stephen W. Duarte, Secretary; Doug Rubley, Jan Lazar & Lesley Ann Seldenright, Finance Department; Ed Piloske, Internal Audit; Melvin McWilliams, Assist. City Attorney; and Hal Rossen & Vic Rosasco, Prudential-Bache Mr. Hal Rossen and Mr. Vic Rosasco of Prudential -Securities addressed the Board presenting the performance evaluation report for quarter ending December 31, 1991, covering the following areas: 1) Summary sheet as of Dec. 31, 1991; 2) Manager Styles Analysis for Period Ending 12/31/91; 3) Cash Flows; 4) Asset Allocation; 5) Composite Performance; and 6) Performance of Equity Managers (Harbor Capital & Lazard, Freres) and Fixed Income Managers (Loomis, Sayles & M. D. Sass) In addition, Mr. Rosasco placed on the chalk -board 3 columns of figures representing 1) market value as of 12/31/86 plus NC (net contributions) 2) market value as of 12/31/91 and 3) Final Gain. Others areas discussed were; 1) a chart entitled "Total Portfolio Value vs Invested Capital 12/31/86 thru 12/31/1991"; 2) a chart "Analysis of Risk -Adjusted Returns --Total Portfolio 12/31/84 thru 12/31/91, and distributed an additional chart on City of Miami Beach Retirement System Proposed Manager Structure. Trustee McKane left the meeting at 10:15 A.M. Mr. Duarte asked Mr. Rosasco about the equity managers and their statistics relative to the area of risk reward (loss and recovery). Mr. Rosasco explained the risk assumed by our managers relative to respective market indexes and the returns of the managers Joint Board Meeting February 20, 1992 compared to the risks taken. He pointed out that since December 1984, even with good total returns we have not achieved the expected risk adjusted returns relative to the market. Also, Mr. Duarte asked the question should we continue to stay with Lazard, Freres for another 12 months, and Mr. Rossen recommended that the City continue to employ them for an.additional 12 months (thru recovery period), and place them on notice that if performance does not improve during an economic upturn which should favor a "value" style manager they will be terminated. Prudential- Bache will be providing to the Board, on a quarterly basis, a newsletter. Joint Board Adjourned at 10:35 A.M. Stephen W. Duarte, Secretary Retirement Boards -Joint Board Meeting 2 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting for March March 19, 1992 8th Floor Conference Room Thursday, 8:30 a.m. City Hall Lansing, MI Thel. Bd'4rd met in regular session and was called to order by the Charpyrson, Ruby White, at 8:35 a.m. Present: Trustee Perdue, Moye, Pontz, Goodin, Brewington, Benavides, White - 7 Absent: Trustee McKane - 1 Present: Stephen W. Duarte, Secretary; Doug Rubley and Teri Cook, Finance Dept.; Melvin McWilliams, Chief Assist. City Attorney; Ed Piloske, Internal Audit and Jack Cushman, Fire Dept. It was moved by Trustee Perdue, supported by Trustee Pontz that the minutes of February 20, 1992 be approved. Adopted by the following vote: Unanimously. The Secretary reported: 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 3 retired. Total membership: 824. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of February, 1992 amounted to $287,381.88, total number of retirement checks printed ERS 466, total retirement checks printed for all three systems 857. The request for Non -Duty Disability Retirement for Gary R. Bain, Public Service, 12 years 7 mo. service credit. This items was tabled. The Retirement Office has not received the medical report. Mr. Duarte, Secretary, informed the Board that he sent a letter to Butler Brown informing him that his service credits are seven less than previously reported to him and that his pension will be adjusted to reflect the change. The motion was made by Trustee Benavides, supported by Trustee Goodin that the application for Regular Age & Service Retirement for Butler Brown, Sr. be approved pending a notification from Mr. Butler. The Secretary provided copies of Draft IV of the modified ordinance language for prefunding of post -retirement Health Insurance Benefits and advised that Council has scheduled a public hearing for March 30, 1992. official Proceedings of the Board of Trustees Employees' Retirement System Regular Meeting - March 19, 1992 Mr. McWilliams reviewed, with the Board, the minor changes to the language of Draft IV. Draft III had minor work changes that did not change substance. Draft IV contains language relative to: a) Using the smoothed market rate of return for calculating investment return for the health care fund. b) Comparative arrangements for members that transferred to the alternative retirement plan. Ruby White turned the chair over to Robert Moye so she could address some concerns. The Secretary explained that the Actuaries Report of 9/19/89 recommended an economic assumption of 16%-13%-11%-9%-7% during the first 5 years and 5% thereafter on health care increases, and that the City follow the phase -in as outline on Page 16. This recognizes a change in the pension assumptions which include increasing the wage growth from 4 % to 5 % and investment return from 7% to 8%. The real rate of return remains at 3%. It was moved by Trustee Brewington, supported by Trustee Goodin that the prefunding of health care concept be approved by the Board as presented by the Secretary as described above. Adopted by the following roll call vote: Yeas: Moye, Brewington, Perdue, Goodin, Benavides, Pontz, White-7 Nays: None A discussion was held on the ordinance on the proposed increase to retirees. The Board asked Mel McWilliams to write the changes in the ordinance he is concerned with and give the board a copy so they can review before the next meeting. Tabled until the next �_ meeting. Trustee Brewington left the meeting at 10:00 a.m. The Secretary read a letter from the Mayor to the Board of Trustee's and presented a resolution for National Volunteers Week recognizing Chairperson Ruby V. White. It was moved by Trustee Pontz, supported by Trustee Perdue'that the resolution be approved. Adopted by the following vote: Unanimously Abstain: Trustee White Mr. Duarte, Secretary, informed the Board that he had sent' a letter to Mr. Knot regarding the contract with NBD for Security Lending. Further, Mr. Knot has forwarded a final contract to the Finance Department. The contract has been sent to NBD for their review. N Official Proceedings of the Board of Trustees Employees' Retirement System Regular Meeting - March 19, 1992 Discussion was held on a letter reaffirming the 30 to 90 day requirement in the ordinance for filing written application for retirement. The Board felt that no action was necessary since the ordinance already addresses it. Review of the possibility of adopting an administratively feasible policy to notify the spouse of the selection of option upon retirement. Tabled. Mr. Duarte, Secretary, informed the Board that a memo will be sent out the first week in April regarding the Trustee Election. Nominating petitions are to be turned in by 4:00 p.m. on May 12, 1992. Primary Election scheduled for June 1 and June 2. The General Election, if necessary, will be June 15 and June 16. It was moved by Trustee Perdue, supported by Trustee Benavides to approve, as read, the Trustee Election schedule. Adopted by the following vote: Unanimously The Secretary informed the Board that he has sent a letter to Donald Brown informing him that he qualified for a pension under Act No. 88 of the Michigan Public Acts of 1961. Mr. Duarte, Secretary, informed the Board that he received one Domestic Relations Order for Alvan Knot. The Secretary reported that he received one Eligible Domestic Relations Order for Alvan Knot. The Secretary has certified the above order. It was moved by Trustee Benavides, supported by Trustee Pontz that Trustee McKane be excused from the meeting. Adopted by the following vote: Unanimously The Secretary advised the Board that the list of Consultants had been narrowed to six and the names -of the firms are to remain confidential until conclusion. The Secretary reported to the Board that the MAPERS Conference will be at Shanty Creek on May 17, 18 and 19. Trustee Moye, Brewington, White and Ed Piloske indicated they would like to attend. The Secretary indicated he had received an application for Duty Disability for Howard Evans and that an appointment will be scheduled. 3 Official Proceedings of the Board of Trustees Employees' Retirement System Regular Meeting - March 19, 1992 Pending Items Status report on legal opinion regarding Workers Compensation in relation to coordination of other benefits. The meeting adjourned due to lack of a quorum at 10:37 a.m. WP\DATA\MISC\BDMINUTE.ERS Stephen W. Duarte, Secretary Employees' Retirement System 4 JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS 8th Floor, Conference Room March 23, 1992 City Hall Monday 8:40 A.M. Lansing, Michigan The Joint Board of Trustees meeting was called to order at 8:40 A.M. �y,,,Qhairperson Jack Cushman. J Preset::_ Board Members: Braun, Cushman, Goodin, Kuz, Luzynski, Moye, Pontz and White - 8 Absent:-_ Board Members: Barkyoumb, Benavides, Brewington, McKane, and Perdue - 5 Present: Others: �, Stephen W. Duarte, Secretary; Lesley Ann. Seldenright, Finance Department; Melvin McWilliams, Chief Assist. City Attorney; Michael Wahl, FOP Supervisory President; Bruce Lankheet, FOP Non -Supervisory President; Dave Wilson, Attorney, Capitol City Lodge #141 Fraternal Order of Police; and Jerry Lawson, Representing FOP A lengthy discussion was held concerning proposed language to amend part of the codified Ordinances of the City of Lansing for the Retirement Systems to provide for the advance funding of post - retirement health insurance benefits. Mr. Duarte advised that there would be separate transfer of funds from the Contingency sub -accounts for each system. (Each has its own health care fund). He also. stated that the City shall actuarially fund 1000 of health care. Further, he can.draw from the General fund, Contingency Reserve fund or both for this purpose. No further language is needed from the actuary because we are just looking at splitting the amount. During the discussion, Chairperson Cushman referred to Section A under the Health Insurance. Fund of the proposed drafts _ re: The amount transferred from the start-up subaccount shall be determined by the City. The question then arose - who is the City? He also referred to Section D - re: Nor shall the creation or maintenance of the health insurance fund preclude the City from giving consideration to and implementing cost containment. measures as provided by law. Melvin McWilliam, Assist. City Attorney, stated that he applied that language in order to make this section clear and not to mis-lead people. In addition, the Chairperson, - throughout the discussion, referred to the schedule from the "Supplemental Actuarial Report" which shows an example of a phase- Joint Board Meeting March 23, 1992 in of the City's advance -funding contributions. Trustee Braun asked the question, what protects the retirees? Mr. McWilliams indicated that one would have to go back to the contract to determine the appropriate rights and obligations. Again, the Secretary stated that it is his intention .to make sure funds are available, and does not want the City to be held hostage relative to transfers from the sub -account that are necessary for meeting the actuarially determined health care contribution. Trustee White also made reference to. addressing the ERS Board re: several concerns with the language as presented in the area of benefits under the contract and that there is. not a guarantee that prefunding will always be continued. The possibility of a .different interpretation at some later date, relative to statements like "implementing cost containments", etc. In addition, she stated she would also like clarification on the meaning of the word "City". Mr. McWilliams informed the Boards.that "City" means who has to pay into the system for employees based on recommendations from those that make decisions for the City such as the Finance Director, Council, etc. Mr. Duarte, Secretary, making .reference to the advance -funding schedule stating that ultimately the start-up fund is not enough to handle the full cost associated with the prefunding of health care. Further, the only thing determined by the actuary are the figures in column I - "Advance Funding", and that this is only a formal process for transferring the money. Mr. Duarte indicated that his desire is to have the transfers -from the sub -account in order to keep the City's contribution on its planned schedule. Mr. Dave Wilson, Attorney for the FOP, addressed the Boards stating 1) 3 bargaining units have not approved prefunding and how did the City get this far; 2) he referred to paragraph "D" in the draft stating if members have bargaining units and have health care benefits, then if the City desires to make changes it can do so according to the constitution, and 3)- touched upon the ordinance and state law re: Section 24 of the Constitution of 1963. The Board recessed at 9:35 A.M. and reconvened at 10:10 A.M. Mr. Duarte, Secretary, shared with the Boards that:- 1) he .will discuss the item of prefunding with the Mayor, 2) ask the Mayor to proceed with the public hearing- but request that no immediate action be- taken and,. 3) have the ordinance referred back to committee. It was moved by Trustee Kuz, supported by Trustee Braun that the 2 Joint Board Meeting March 23, 1992 item of prefunding of health care be tabled, and be referred back to both retirement boards respectively for the April meetings. Adopted by the following vote: Unanimously. Mr. Duarte, Secretary, stated for the record that: 1) the General Employees Retirement System did not receive a copy of Draft 43, that only he saw draft #3; 2) the only change in draft #3 was in the area of interest allocated to health care and the striking of the letter "A"; 3) Draft #3 and #4 were prepared for his review. Mr. McWilliams informed the Boards that the City Attorney, Al Knot's, point of view, in this area, is that his preference would ideally be that all bargaining units understand and agree. Joint Board Adjourned at 10:28 A.M. Stephen W. Duarte, Secretary Retirement Boards -Joint Board Meeting 3 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for April April 23, 1992 8th Floor Conference Room Thursday, 8:43 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Ruby White, at 8:43 A.M. Present: Trustee Benavides, Brewington, Goodin, Moye, Perdue, Pontz and White - 7 Absent:`., Trustee McKane - 1 Present Stephen W. Duarte, Secretary; Doug Rubley and Lesley Ann Seldenright, Finance Dept.; Melvin McWilliams, Chief Assist. City Attorney; and Ed Piloske, Internal Audit; Florence Findsen and Margaret Herp, retirees and Ronald Kruger. It:was moved by Trustee Moye, supported by Trustee Perdue that the minute's of the March 19, 1992 and the Joint Board meeting of March 23, 1992, be approved. Adopted by the following vote: Unanimously. The Secretary reported 2 new members, 0 reinstatements, 1 refund, 0 transfers and 1 retired. Total Membership; 824. Refunds made since the last regular meeting $1,019.22. Retirement allowances paid for the month of March, 1992 amounted to $291,080.70, total number of retirement checks printed ERS 467, total retirement checks printed for all three systems 859. Discussion was held concerning Disability Retirement for Gary R. month service credit. Benavides arrived at 8:48 A.M. the medical report for Non -Duty Bain, Public Service, 16 years 1 It was moved by Trustee Brewington, supported by Trustee Pontz that the Board approve a Non -Duty Disability retirement for Mr. Gary R. Bain and retro-active back to March, if appropriate. Adopted by the following roll call vote: Yeas: Benavides, Brewington, Goodin, Moye, Perdue, Pontz & White - 7 Nays: None Discussion was held concerning the application and medical report for Duty Disability Retirement for Howard Evans, Parks Dept., 20 1 Employees Retirement System April 23, 1992 years 7 months service credit. Dr. Chambers, Medical Director, stated that his condition is a permanent partial disability, in the cover letter, however, the medical report states permanent disability. It was moved by Trustee Brewington, supported by Trustee Benavides that the Board approve a Duty Disability Retirement for Howard Evans based on the report by the Medical Director, and the recommendation of the Reasonable Accommodation Committee. Adopted by -the following roll call vote: Yeas: Benavides, Brewington, Goodin, Moye, Perdue, Pontz & White - 7 Nays: None Discussion was held concerning the medical report for Duty Disability Retirement for Emily Sheffield, Fire. Department Civilian, 12 years 7 months service credit. It was moved by Trustee Benavides, supported by Trustee Pontz that the Board deny a Duty Disability Retirement status for Emily Sheffield, based on the medical report and recommendation of the Medical Director. Adopted by the following roll call vote: Yeas: Benavides, Brewington, Goodin, Moye, Perdue, Pontz & White - 7 Nays: None The Secretary, Mr. Duarte, advised that the "Certification of Annual Earnings" request form is being revised and will be mailed out to the Disability retirees soon. The deadline for turning them in is June 30, 1992. Discussion was held on the prefunding of post -retirement health insurance and Mr. Duarte advised that the Joint Board meeting of March 23, 1992 had referred this item back to each board. Melvin McWilliams, Chief Assist. City Attorney, distributed to the Board copies of the proposed substitute language on the Health Insurance Prefunding Ordinance for the General Employees Draft 44, page 7 line 5, and Draft # 4 page 5 line 13 ( see attached) . Mr. Duarte stated that in reference to the start-up subaccounts that he wants a phased in schedule so that the City will be able to plan on the amount it must contribute during this process. It was moved by Trustee Moye, supported by Trustee Pontz that the Board approve the above two proposed substitute language amendments and state that it is the intent of the Board to follow the phased in schedule as amended by the actuary from time to time. This is 2 Employees Retirement System April 23, 1992 being done to allow the City to incrementally increase its contribution towards full funding. Adopted by the following roll call vote: Yeas: Benavides, Brewington, Goodin, Moye, Perdue, Pontz and White - 7 Nays: None Trustee Benavides and Perdue left the meeting at 9:25 A.M. and Trustee Perdue returned at 9:30 A.M. and Trustee Benavides returned at 9:37 A.M. Discussion was held on the proposed usage of the 20% Members' Fund for retirees and beneficiaries. Trustee White requested Melvin McWilliams to review, amend, and bring back to the Board for -the next month Is meeting. The Board will also review before approving. Mr. McWilliams was directed to incorporate language on 1) smoothed market rate of return 2) 3 year minimum retirement and retro effective date back to 1988, and after that every two years. Mr. Rubley advised that we have not yet received the contract back from NBD for Security Lending but as soon as it is signed --it will be submitted to the Board for their review and approval. The Board was informed that the legal opinion regarding workers compensation in relation to coordination of other benefits is still pending. Short discussion was held concerning the possibility of adopting an administratively feasible policy to notify the spouse of the selection of option upon retirement. Chairperson White turned over the meeting to Vice -Chair Moye at 9:58 A.M. and returned at 10:01 A.M. The Board was advised that there are no federal requirements concerning a policy to notify the spouse of selection of option. Trustee Pontz stated she felt it was important that we consider some language in this area, however, Trustee Brewington stated if this is not required by law then we can put this issue rest. No action was taken by the Board. Mr. Duarte reported to the Board that Mr. Donald Brown has not returned his retirement application papers to the Retirement Office and that he will follow up on this item. The Secretary stated that the Retirement Office was in receipt of a Domestic Relations Order from Mr. David Garcia and distributed to the Board a copy of the "notice of Receipt of a Domestic Relations Order", form. 9 Employees Retirement System April 23, 1992 Mr. Duarte also advised the Board that Mr. Earlie Peterson's domestic relation order has been denied. It is not an eligible domestic relations and this information has been forwarded on to the proper parties. It was moved by Trustee Perdue, supported by Trustee Moye that Trustee McKane be excused from the meeting. Adopted by the following vote: Unanimously Discussion was held concerning: 1) the resignation of Dr. Chambers, Medical Director, (Center for Occupational Health Services) and that Dr. Marlize Telles, M.D. will be replacing her, and 2) how to handle the approving of a new medical director. The Board directed Mr. Duarte to review with the Chair and Vice Chair the credentials of a new medical director, review the contract and, if necessary, hold a special Board meeting. Mr. Duarte advised the Board that Trustee Pontz, Manager of the State Employees Retirement System, sent Mr. Russell Galvin a letter advising him that since he left City of Lansing employment prior to the amendment of Act 88, he is subject to the five year requirement for service in the succeeding unit. Trustee Pontz inquired concerning the early out retirement program and does the Board have any input or responsibility, what the cost factor might be, etc. Discussion was held. It was stated that some authorization needs to be adopted re: Trustee's function - the ordinance. The Board requested Melvin McWilliams, Chief Assist. City Attorney, to prepare an ordinance amendment on this item. Trustee left the meeting at 10:34 A.M. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation for March 31, 1992, and presented a brief overview of the transactions by the outside money managers. Mr. Rubley informed the Board that there will be a Joint Board meeting at 9:00 A.M. on May 12, 1992, following the regular Police and Fire Retirement Board meeting. Prudential-Bache will provide their quarterly report and the interviewing of two of the investment performance evaluation managers will take place. In addition, on May 13, 1992, there will be a Joint Board meeting to review the other 3 finalists. Mr. Rubley added that these will be all morning meetings and :that he would like each Board member, if possible, to attend the interviews on both days. Doug also advised that he will provide a m Employees Retirement System April 23, 1992 review sheet to the Trustees and that they may take approximately 10 minutes after each firm's presentation for evaluating. In addition, Mr. Rubley stated that 1) both the equity and bond market were down last month, 2) there is no further information on M.D. Sass (Executive life bonds) - appeal still pending, the bonds are now worth about 38 cents on the dollar, 3) Shearson Lehman down 3.9% and S & P index down 2.180, etc. The Meeting Adjourned at 10:54 A.M. Stephen W. Duarte, Secretary Employees Retirement System 6 Health Insurance Prefunding Ordinance Proposed Substitute Language General Employees Draft # 4, p 7, line 5 Add at end of 292.39 (D): INSTEAD, THE PURPOSE OF THIS SECTION IS TO PUT IN PLACE A MECHANISM FOR THE ADVANCE FUNDING OF POST -RETIREMENT HEALTH INSURANCE FOR ELIGIBLE RETIREES, AND NOT, APAR FROM THE ADVANCE WHICH ELIGIBLE RETIREESOMAYAALREADYNT TO RHAVE. AWAY ANY RIGHT Health Insurance Prefunding Ordinance Proposed Substitute Language General Employees Retirement Draft # 4, p. 5, line 13 Delete: THE AMOUNT TRANSFERRED FROM THE START-UP SUBACCOUNT SHALL BE DETERMINED BY THE CITY. Insert: THE AMOUNT TRANSFERRED FROM THE START-UP SUBACCOUNT SHALL BE IN ACCORDANCE WITH THE PHASE -IN SCHEDULE PREVIOUSLY APPROVED BY THE BOARD, AND AS REVISED ANNUALLY BY THE BOARD IN CONSULTATION WITH THE ACTUARY. JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEM 8th Floor, Conference Room City Hall Lansing, Michigan May 12, 1992 Tuesday, 9:24 A.M. The Joint Board of Trustees meeting was called to order and began at 9:24 A.M. Presgn� Board Members: t Barkyoumb, Braun, Cushman, Goodin, Kus, Luzynski, Pontz and White - 8 Absent:- Benavides, Brewington, McKane, Moye and Perdue - 5 Present: Others: Stephen W. Duarte, Secretary; Jan Lazar, Lesley Ann Seldenright, and Doug Rubley, Finance Dept.; Ed Piloske, Internal Audit Dept.; Victor Rosasco and Hal Rossen Prudential-Bache; John Woch, Shelly Stevens -Dean and Janet Dean, Shearson Lehman Brothers; W.D. Hutchens & Mr. Hannah, J.-A. Hannah A presentation was given by Vic Rosasco and Hal Rossen, Prudential- Bache on the investment management consulting services quarterly investment review for period ending March 31, 1992. They distributed to the Board copies of 2 magazine articles entitled, "Rising Dow doesn't lift all stock indexes" and Top Managers Tout Classic Growth Issues" for their review. During the presentation some of the items discussed were; 1) performance of the S&P 500 components, 2) General Employees composite performance, 3) Manager Styles Analysis - Value/Growth Manager, 4) Cash Flow, 5) Asset Allocation, 6) Performance of Equity and Fixed Income Managers, 7) Risk/Return Analysis, 8) Rate of Return, etc. Trustee Kus left at 9:45 A.M. The Board inquired about the status of M.D. Sass and Hal Rossen advised there is no date for appeal yet and that the longer it draws out the better for the defense lawyers to complete their research. 1 Joint Board Meeting May 12, 1992 Prudential-Bache completed there report and left the meeting at approximately 10:15 A.M. and the Board continued their discussion. Shearson Lehman Brothers: Trustee Kus returned at 10:55 A.M. Shearson Lehman Brothers distributed to the Board a folder to assist them while they provided their presentation which covered some of the following items: 1) investment objectives (risk, liquidity, growth; 2) Capital Markets Analysis (historical data, investment return, investment volatility); 3) Policy Constraints (restrictions & limitations); 4) Asset Allocation; 5) Due Diligence (sample scorecard system); 6) Recommendations; 7) overview, etc. Trustee Cushman asked about the investment objectives and guidelines and they responded they felt guidelines need to be tightened up, need more aggressive exposure, need to tell managers what the Board wants, etc. Shearson Lehman Brothers completed there presentation at 11:35 A.M. J. A. Hannah New firm formed September 30, 1988. An investment consultant currently representing 19 pension systems in the public sector. Home base out of Boston, Massachusetts. Managing two billion in assets. Privately owned business. Their goal is to promote from within and control growth in order not to outgrow their service ability. As they do take on other accounts we would still have the services of Hannah and Hutchens. Willing to set down at the table to assist in working out the guidelines within which our Money Managers- must work. Very aggressive or pro -active style with this being their only business. They expressed a willingness to make strong recommendation and stand behind recommendations. They recommended we call their current clients about their work ethic. They have lost only one client which was due to the client being a small group who couldn't afford the fees. They were not able to pay for the representation, however, would like to contract with them periodically. Currently looking at Act 55 guidelines. 2 Joint Board Meeting May 12, 1992 Three of their staff ar-e AMR members. They have constant monitoring and will produce monthly copies of their reports if requested and will advise if they see a potential problem. They look at style of managers and whether they are adding value to the portfolio, how the managers picks stocks, etc. They actually analyzed the data furnished to them for both P&F and ERS and gave an overview of how they felt we could improve on our current investment strategy. The Meeting Adjourned at 1:14 P.M. Stephen W. Duarte, Secretary Retirement Boards -Joint Board Meeting 3 JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS 8th Floor, Conference Room City Hall Lansing, Michigan May 13, 1992 The Joint Board of Trustees meeting was called to order at 8:30 A.M. Present: Board Members: Barkyoumb, Cushman, Goodin, Kuz, Luzynski, Moye, Pontz and White - 8 Absey : Benavides, Braun, Brewington, McKane and Perdue - 5 _, C\ j Present:_ Others: - Stephen W. Duarte, Secretary; Jan Lazar, Lesley Ann Seldenright and Doug Rubley, Finance Dept.; Ed Piloske, Internal Audit Dept.; Vic Rosasco, Harold Rossen & Dr. - Richard Rush of Prudential Bache; Robert Gernstetter and Paul Erlendson of Callan Assoc.; and David Kudish and Kathleen Crowley of Stratford Advisory Group Prudential-Bache in their presentation stressed their in-house capabilities and large number of governmental clients. In our account they recommend a new asset liability study with support from the New York office. They discussed their capabilities on investment objectives, risks and asset allocation. They provided a summary and completed their presentation at 11:00 A.M. Callan Associates, Inc. Callan Associates distributed two booklets to the Board for their review during the presentation. They informed the Board that 1) over 25 .years experience 2) they are a large firm, 3) 35 generalists consultants nationwide, 4)-respond promptly to client needs, 5) 234 institutional clients, etc. Callan also expanded upon some Profile, 2) Fund Performance, 3) Managers, 5).Fund Analysis, etc. of the following items: 1) Fund Equity Managers, 4) Fixed -Income They provided a summary and completed there presentation at 11:20 A.M. Stratford Advisory Group, Inc. 1 Joint Board Meeting May 13, 1992 Stratford Advisory Group handed out booklets to the Board Trustees for them to follow along as they provided their presentation. They shared information on their background covering 1) founded in 1982, 2) independent, 3) 17 associates & 11 investment professionals,.4) no turnover among key professionals, 5) diverse experience, etc. They also covered other areas such as: 1) long-term objectives, 2) diversified investment structure, 3) ongoing consulting services, 4) understanding cycles & investment styles, 5) Style -Tilting, etc. Summary was given and the presentation was completed at 12:45 A.M. The Meeting Adjourned at 12:45 A.M. Stephen W. Duarte, Secretary Retirement Boards -Joint Board Meeting 2 OFFICIAL PROCEEDINGS CANCELLED FOR THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting Cancelled for June June 18, 1992 8th Floor, Conference Room Thursday 8:30 A.M. City Hall Lansing, Michigan The Board of Trustees met for a regular session, however, the meeting was cancelled due to a lack of a quorum and the meeting was rescheduled for June 25, 1992. A short informal session was held and Mr. Rubley distributed to the Board members present copies of the portfolio summary for funds evaluation as of May 31, 1992, and presented a brief overview of the transactions by the outside money managers. It was stated that there will be an on -site visit to J. A. Hannah this month and Mr. Duarte will also meet with their accountant. Mr. Rubley also passed out copies of a letter that had been mailed to him from Harbor Capital Management Company regarding dual growth and value style investing. It was mentioned that Hal Rossen will stay on board until the other consultant firm is hired. Mr. Duarte distributed to the Board copies of the proposal to increase benefits to retirees and beneficiaries from Melvin McWilliams, Chief Assist. City Attorney, for there review. OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for May May 21, 1992 8th Floor Conference Room Thursday 8:47 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Ruby White, at 8:47 A.M. Present: Trustee Brewington, Goodin, McKane, Moye, Pontz and White I -- - 6 Absent�=� Trustee Benavides and Perdue - 2 Present: Stephen W. Duarte, Secretary; Doug Rubley and Lesley Ann Seldenright, Finance Dept.; Ed Piloske, Internal Audit Dept. It was moved by Trustee Brewington, supported by Trustee Moye that the minutes of April 23, 1992 be approved: Adopted by the following vote: Unanimously. Public Comments: Ed Piloske, Internal Audit Dept., upon the request of Trustee (Councilman Benavides) gave a short presentation on his review and analysis of the five performance evaluator proposals. He indicated that the fee for Stratford Advisory Group and that "Style -Tilting" seemed more appropriate to an investment manager type function than to a performance evaluator type function. Ed also gave a comparison between J. A. Hannah and Callan Associates highlighting the areas of 1) firm history, 2) staff, 3) experience, 4) evaluation of risk/return, 5) independence, 6) health care financial advice, etc. Mr. Rubley advised that Prudential Bache was paid in soft dollars and that it is hard to measure their fees. For both systems, he has begun to call clients of J. A. Hannah and reported their fee for both systems will be approximately $86,000 in hard dollars and will go up according to preformance. The Secretary reported 1 new member, 0 reinstatements, 0 refunds, 0 transfers and 2 retired. Total Membership; 823. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of April, 1992 amounted to $293,543.46, total number of retirement checks printed ERS 469, total retirement checks printed for all three systems 862. 1 Employees Retirement System May 21, 1992 Trustee McKane arrived at 9:03 A.M. Discussion was held on Gary R. Bain, Non -Duty Disability retirement status. The Board approved his retirement retro, if appropriate, since he has been on short term disability and will continue even after retirement until his 26 weeks are used up. For the record, the Board needs to record the final retirement date of March 20, 1992. It was moved by Trustee Brewington, supported by Trustee Moye that the final retirement date for Gary R. Bain, Public Service Dept., be March 20, 1992. Adopted by the following vote: Unanimously. Mr. Duarte, Secretary, certified to the Board that the nominating petitions were received by the Retirement System Office by 4:00 P.M. on May 12, 1992, for Michele M. Restainer -Planning & Municipal Dev. Dept. -Building Safety Div., and Roy Murphy -Finance Dept. - Assessor Div. The names of persons signing the nominating petitions have been compared with the active membership rolls of the Employees Retirement System and invalid signatures have been removed from the petitions in accordance with the Election Rules. The 2 candidates have filed valid petitions. It will not be necessary to hold a Primary Election since there are only 2 people that have filed nominating petitions. The General Election to select the Trustee member will be held over the two day period of Monday, June 15 and Tuesday, June 16, 1992. Mr. Duarte recommended to the Board the names of Toni Glasscoe and Margaret Pollard, Public Service Dept., as election inspectors for Monday, June 15, 1992, and Basil Teal and Lynne Dean, Parks Dept. as election inspectors for Tuesday, June 16, 1992. It was moved by Trustee McKane, supported by Trustee Moye that the Board approve the above election inspectors as recommended by the Secretary for the General Election to be held on June 15th and June 16, 1992. Adopted by the following vote: Unanimously. It was moved by Trustee McKane, supported by Trustee Pontz that the Board approve the certification of nominating petitions for Michele M. Restainer, Planning & Mun. Dev. Dept., Building Safety Div. and Roy Murphy, Finance Dept., Assessor Div. as the two candidates filing valid petitions. Adopted by the following vote: Unanimously. Mr. Duarte advised the Board that he and the Chairperson and Vice- 2 Employees Retirement System May 21, 1992 Chairperson of both Boards interviewed Dr. Marlize Telles, Center for occupational Health Services, Medical Director, on May 11, 1992, and that; 1) she answered questions completely, 2) she indicated that she would try to accommodate the Board and if unable to attend a meeting would have a conference call with the Trustees, 3) she had been licensed from Central & South American School prior to being licensed with the U.S. and Trustee Kus was doing some investigating in this area, 4) the Police & Fire Board had already approved her as Medical Director to their Board, 5) Trustee Benavides highly recommended Dr. Telles, as he had worked with her through Cristo Rey Community Center. It was moved by Trustee Moye, Board hire Dr. Marlize Telles, Services, as Medical Directo Employees Retirement System. Adopted by the following vote: supported by Trustee McKane that the with Center for occupational Health r for the Board of Trustees of the Unanimously. Mr. Duarte informed the Board that we had not yet received the ordinance amendment from Melvin McWilliams, Chief Assist. City Attorney, concerning the early out retirement program re: Trustee's function. Mr. Duarte also added that the Board's roll is to manage investment strategy and to make sure that our asset/liability mix is appropriate. He also stated that they are looking at an early retirement option for the Park Police unit. Chairperson White stated that the Board had not yet received from Mr. McWilliams, Chief Assist. City Attorney, the amended language on the proposed recommended usage of the 20% Members' Fund for retirees and beneficiaries. The proposal will recommend using one- half the interest based on: 1) smoothed market rate of return and 2) 3 year minimum retirement and retro effective date back to 1988, and after that every two years to provide a check based on earned interest. Chairperson White stated that her term of office will be up on June 30, 1992 and that she will be leaving the Board and will be unable to attend the June meeting as she will -be on vacation. Mr. Rubley advised that the contract from NBD for Security Lending is still in the Law Department. He indicated that there is one minor change and that Mr. Knot is contacting NBD concerning this matter. The status of the legal opinion re: Workers Compensation in relation to coordination of other benefits will not be addressed since Mr. McWilliams, Chief Assist. City Attorney, was not present at the meeting. Place this item back on the agenda for next month. 3 Employees Retirement System May 21, 1992 Discussion was held concerning the application for Donald Brown, Deferred Status. Trustee Pontz informed the Board that the State of Michigan amended the Retirement Reciprocal Act and that people can draw their retirement at age 60. Also, Mr. Duarte advised that a communication had been sent to Mr. Brown advising him that the law had changed and that his retirement would be retro-active. It was moved by Trustee Pontz, supported by Trustee McKane that the Board approve the application for Donald Brown, Age & Service Retirement, 6 years 10 months service credit, retirement effective retro to November 1, 1987. Adopted by the following roll call vote: Yeas: Brewington, Goodin, McKane, Moye, Pontz and White - 6 Nays: None Mr. Duarte, Secretary, informed the Board that there were no Domestic Relations Orders received. In addition, the Secretary advised that there were no Eligible Domestic Relations Orders to be certified. It was moved by Trustee McKane, supported by Trustee Brewington that the Board excuse Trustee Benavides and Perdue from the Board meeting. Adopted by the following vote: Unanimously Chairperson White stated she felt that the people in the firm of Prudential-Bache were not giving the service that we currently need and felt that we should terminate the contract with Prudential- Bache in order to rewrite another contract. Discussion was held. It was moved by Trustee McKane, supported that the Employees Retirement System Board with Prudential-Bache. Adopted by the following roll call vote: Yeas: Brewington, Goodin, McKane, Moye, Nays: None by Trustee Brewington terminate the contract Pontz and White - 6 Mr. Duarte, Secretary, made a recommendation to the Board on the consultant selection and a copy of his memo was distributed to the Trustees. Mr. Duarte stated that based on the oral presentation and written response to the request for proposal he recommends the firm of J.A. Hannah Investment Advisory Service as the most responsive to our need. Mr. Rubley also added that he felt J.A Hannah was an excellent choice for the following: 1) they took a proactive approach in the consultant area, 2) they indicated what was presently wrong, 3) only firm who analyzed stock by stock, 4) even though all 5 firms 4 Employees Retirement System May 21, 1992 analyzed the portfolio, J. A. Hannah went above and beyond, 5) small firm but powerful, 6) they will monitor stocks and trades daily, etc. Trustee White indicated that she felt the number two person (Mr. William Hutchens) was also very important to managing the portfolio and that his credentials were also very acceptable. It was moved by Trustee McKane, supported by Trustee Pontz that the Board approve the firm of J.A. Hannah Investment Advisory Service (pending completion of requested data at the Joint Retirement Board meeting) as our consulting firm subject to a negotiated contract which will be brought back to the Board for review. In addition, the Board expresses its appreciation to all the staff for their recommendation. Adopted by the following vote: Unanimously. An informal discussion was held with the Joint Boards about arrangements to, have an on -site visit to the Hannah Building along with reference calls being completed. Trustee McKane left the meeting at 9:55 A.M. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation for April 30, 1992 and presented a brief overview of the transactions by the outside money managers. Mr. Rubley added that 1) we transferred $289,000.00 from the managers to meet cash funds, 2) advised that changing the asset allocation from 45% to 55% in stock was one of the best things the Board did, 3) the S&P was up 2.79%, 4) S&P index manager was the only one that out -performed the S&P this month, 5 ) S&P up 6 % in the last 6 months, etc. The Meeting Adjourned at 10:07 A.M. Stephen W. Duarte, Secretary Employees Retirement System 5 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for June June 25, 1992 8th Floor Conference Room Thursday 8:37 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairpe)�Ison, Ruby White, at 8:37 A.M. -; Presentz- Trustee Benavides, Goodin, Moye, Perdue, Pontz & White - 6 Absent:. -Trustee Brewington and McKane - 2 .Present:_ Stephen W. Duarte, Secretary; Lesley Ann Seldenright,_ Finance Dept.; Ed Piloske, Internal Audit Dept. It was moved by Trustee Moye, supported by Trustee Perdue that the minutes of the Regular meeting for May 21, 1992 and the Joint Board meetings for May 12, 1992 and May 13, 1992, be approved. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 3 retired. Total Membership; 820. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of May, 1992 amounted to $302,879.63, total number of retirement checks printed ERS 473, total retirement checks printed for all three systems 868. It was moved by Trustee Perdue, supported by Trustee Pontz that the Board approve the following applications for Retirement under the Voluntary Reduction in Work Force with 5 additional years included: Donna M. Collins, Finance/Accounting, 25 years 2 months service credit, age 54, effective July 1, 1992. Geraldine L. Holcomb, Admin. Service/Central Garage, 17 years 5 months service credit, age 65, effective July 9, 1992. Eloise J. Taylor, Human Resources, 13 years 3 months service credit, age 62, effective July 1, 1992. Richard Waidelich, Finance/Assessor, 18 years 8 months service credit, age 67, effective July 7, 1992. Robert E. Dexter, Public Service, 38 years 11 months service credit, age 54, effective July 7, 1992. 1 Employees Retirement System June 25, 1992 David W. Hilliard, Sr., Admin. Service, 17 years 1 month service credit, age 48, effective July 18, 1992. Carol M. Rapson, Parks/Special Rec., 29 years 3 months service credit, age 52, effective July 7, 1992. and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Goodin, Moye, Perdue, Pontz and White- 6 Nays: None Mr. Duarte, Secretary, informed the Board that a request for Disability Retirement was received from Arlan A. Perry, Public Service/Transportation, 13 years 11 months service credit. He advised that the Retirement Office received Mr. Perry's medical records from his physician were forwarded to the Board's Medical Director for review. Mr. Perry has been scheduled for a medical_ exam on July 14, 1992. It was moved by Trustee Benavides, supported by Trustee Perdue that the Board refer Mr. Arlan Perry to Dr. Telles, Medical Director, for a physical examination. Adopted by the following vote: Unanimously. The Secretary advised that Melvin McWilliams, Chief Assist. City Attorney, has drafted a form entitled, "Certification of Disability" for Dr. Marlize Telles, Medical Director, to use when examining an employee for disability. The form will be submitted to the Board once the draft language has been finalized. The Secretary informed the Board that the results of the General Election for the position of Trustee to the Employees' Retirement System which was conducted over the period of June 15th and June 16th, 1992 were as follows: total ballots cast were 67; Roy Murphy had 57 votes and Michele Restainer had 10 votes. It was moved by Trustee Benavides, supported by Trustee Perdue that the Board certify the results of the General Election held June 15 and June 16, 1992 and that the winner is Roy Murphy, Finance Dept./ Assessor Division. Adopted by the following vote: Unanimously. Mr. Duarte stated that the ordinance amendment from the City Attorney's Office re: Early out retirement program - Board Trustee's function has not yet been returned. It was moved by Trustee Benavides, supported by Trustee Pontz that the item on the ordinance amendment on the Early out retirement 2 Employees Retirement System ,June 25, 1992 program ( Voluntary Reduction in Force) be placed back on the agenda for next month. Adopted by the following vote: Unanimously. Mr. Duarte reported to the Board on the proposed ordinance amendment for the usage of the 20% member fund advising that there is a hold up on the prefunding of health care with respect to endorsement by the U.A.W. He also stated that he had talked to the U.A.W. The U.A.W. has received a copy of the City's proposed letter of agreement and has expressed a desire to make some modifications. He is trying to resolve these issues by supplying more information about the proposal. Mr. Duarte will call Mr. Putney, Labor Relations Director, and Mrs. White will contact the U.A.W. to follow up on this issue. It was moved by Trustee Benavides, supported by Trustee Moye that the Board recommend a proposed resolution to Council for their action on the adoption of an ordinance providing for prefunding of health care. Adopted by the following vote: Unanimously. The Secretary relayed to the Board that he was hopeful that the contract with NBD on Security Lending will be available for the next Board meeting and that all the language will be agreed to. It was moved by Trustee Benavides, supported by Trustee Pontz that the Board table the item on the legal opinion re: Workers Compensation in relation to coordination of other benefits for next month's meeting. Adopted by the following vote: Unanimously. Mr. Duarte informed the Board that the contract with the Consulting Firm is in the process of being drafted and will be submitted to this Board for their review. Mr. Duarte, Secretary, advised the Board that there were no Domestic Relations Orders received. In addition, the Secretary stated that there were no Eligible Domestic Relations Orders to be certified. It was moved by Trustee Benavides, supported by Trustee Pontz that the Board excuse Trustee Brewington and McKane from the Board meeting. Adopted by the following vote: Unanimously. Mr. Duarte stated that the Retirement Office had mailed out 6 Duty Disability Earnings reports for the Disability retirees to complete and that all 6 have now been returned to us. 3 Employees Retirement System June 25, 1992 The Secretary presented a plaque to Trustee White in recognition of her service as Chairperson for the City of Lansing Employees Retirement System Board of Trustees from January 1, 1985 to June 30, 1992. Due to Mr. Rubley giving a brief summary for funds evaluation for May 31, 1992 and presenting a brief overview of the transaction by the outside money managers at the informational session on June 18, 1992, it was not necessary to provide another overview. The Meeting Adjourned at 9:07 A.M. Stephen W. Duarte, Secretary Employees Retirement System 4 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for July July 23, 1992 8th Floor Conference Room Thursday 8:32 A.M. City Hall Lansing, Michigan I �V The So�rd met in regular session and was called to order by the Vice -Chairperson, Robert Moye, at 8:32 A.M. Present: Trustee Goodin, Moye, Murphy, Perdue and Pontz - 5 Absent: Trustee Benavides, Brewington and McKane - 3 Present: Stephen W. Duarte, Secretary; Ruby White, Lesley Ann Seldenright and Doug Rubley, Finance Dept.; and Ed Piloske, Internal Audit Dept. _ It was moved by Trustee Perdue, supported by Trustee Pontz that the minutes of the Regular meeting for June 25, 1992, be approved. Adopted by the following vote: Unanimously Melvin McWilliams, Chief Assist. City Attorney, under public comments suggested that the Board address agenda item number 11, on the Ordinance Amendment on the Early out retirement program, before item number 7, applications for retirement -Voluntary Reduction in Work Force - 5 additional years included. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 0 retired. Total Membership; 820. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of June, 1992 amounted to $294,379.29. Total number of retirement checks printed ERS 469, total retirement checks printed for all three systems 864. It was moved by Trustee Pontz, supported by Trustee Murphy that the application for Regular Age and Service from Deferred Status for: Betty Ann Bush -Little, Public Service/Transportation, 11 years 5 months service credit, age 58, and effective October 1, 1992. be approved and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Goodin, Moye, Murphy, Perdue and Pontz - 5 Nays: None 1 Employees Retirement System July 23, 1992 It was moved by Trustee Perdue, supported by Trustee Pontz that the Board address agenda item #11 at this time. Adopted by the following vote: Unanimously Melvin McWilliams, Chief Asst. City Attorney, informed the Board that the ordinance amendment between the City of Lansing and Teamsters for the voluntary reduction in force has been forwarded to the City Council for their action. Trustee Moye questioned why the Ordinance must be amended, and Mr. Duarte advised that an amendment to the Charter or Ordinance was necessary because a history trail must be in place in the Codified Ordinance, not just in the union contract. Trustee Pontz asked if there was a way that the Board could be made aware of issues before the public was informed. Mr. Duarte advised that he would accommodate the Board, as much as possible, in this area. - It was moved by Trustee Perdue, supported by Trustee Murphy that the Board approved the following applications for Retirement under the Voluntary Reduction in Work Force with 5 additional years included: Georgiana A. Viele, Police Dept., 16 years 6 months service credits, age 63 and effective July 1, 1992. Raymond O. Severy, Public Service Dept., 23 years 1 month service credit, age 48 and effective August 1, 1992. John P. Salmons, Planning & Mun. Dev. Dept. , 25 years 5 months service credit, age 45 and effective August 1, 1992. Robert C. Trowbridge, Public Service, 37 years 1 month service credit, age 55 and effective July 7, 1992. and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Goodin, Moye, Murphy, Perdue, and Pontz - 5 Nays: None Mr. Duarte advised the Board on the, "Impact of Layoff Settlement", stating that it was recommended by the Mayor and approved by the Council. This eliminated the Park Police Division. Two people were seeking employment with the Police Dept. or taking the early retirement incentive and that 7 positions were eliminated. It was moved by Trustee Perdue, supported by Truste Murphy that the Board approve the application for Retirement under the Impact of 2 Employees Retirement System July 23, 1992 Layoff Settlement for: David J. Henderson, Park Security Dept., 26 years service credit, age 42 and effective July 1, 1992. and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Goodin, Moye, Murphy, Perdue, and Pontz - 5 Nays: None Mr. Duarte distributed to the Board, for their review, copies of Mr. Arlan Perry Is medical report from Dr. Telles, Medical Director, and discussion was held. Susan Wager, Asst. Personnel Director, informed the Board that Mr. Perry informed the Personnel Dept. that he does not desire assistance through the Handicapper's Accommodation Committee. It was moved by Trustee Perdue, supported by Trustee Murphy that the Board approve a Non -Duty Disability Retirement for Mr. Arlan Perry, Public Service/Transportation Dept., effective July 24, 1992, based on the medical report from Dr. Telles. Adopted by the following roll call vote: Yeas: Goodin, Moye, Murphy, Perdue, and Pontz - 5 Nays: None Mr. Duarte distributed to the Board a copy of the memo from Melvin McWilliams, Chief Asst. City Attorney, with the attached form for Certification of Disability. Mr. McWilliams advised that this was a proposed form to be utilized by the medical director for making certification of disability to the Board of Trustees and to insure that the Medical Director has made a certification consistent with the actual language used in the retirement plan. Also Mr. McWilliams stated that: 1) he proposed a working definition for the phrase "mentally & physically totally incapacitated for the performance of duty..., 2) note that such a certification does not relieve the City from adhering to its obligation under the City's handicapper policy & procedure and applicable law, and 3) the form leaves in the hands of the Board- of Trustees the ultimate determination as to whether or not an incapacitating condition is duty related or not. Mr. Duarte stated that he would advise Dr. Telles, Medical Director, that this is only to be used as a cover sheet and that her medical report is to also be provided. Susan Wager, Asst. Personnel Director, also advised that all medical forms from the Personnel office are sent to the Medical Director for her information. Ms. White, Retirement Technician, also advised the Board that the policy is to require the members requesting Non -Duty Disability to provide the Board with medical records, letters from 3 Employees Retirement System July 23, 1992 his/her personal physician, hospital records, etc. This information is then transferred to the Medical Director. It was moved by Trustee Goodin, supported by Trustee Perdue that the Board approve the form, with the amendments, for the Certification of Disability to be used by the City's Medical Director. Adopted by the following vote: Unanimously. Mr. Rubley informed the Board that there was an amendment to the existing contract with NBD for Security Lending which has a 30 day termination notice and this contract has been reviewed by Mr. Fisher, NBD Is President. NBD would like to insert a clause and Mr. Rubley indicated that there is no problem with allowing this. Mr. Duarte and Mr. Rubley explained the basic reason for NBD's amendment is to hold them free of liability should the value of a security go down while on loan. Example, should the value go to 99% rather than remaining at 104% of loan value. Discussion was held. It was moved by Trustee Pontz, supported by Trustee Goodin that the Board approve the NBD Security Lending contract, as amended, and authorize the Vice -Chairperson to sign the contract. Adopted by the following vote: Unanimously Mr. McWilliams, Chief Asst. City Attorney, advised the Board that the Attorney's Office has received a very complicated opinion, which deals with the coordination of workers compensation and disability pensions; however, Mr. McWilliams stated that he has not yet had an opportunity to review this opinion. He will give a report on this item at next month's Board meeting. Ms. White, Retirement Technician, advised that she still is waiting for direction as to whether the pension should be offset. The Secretary informed the Board that there are no pension benefit reductions on the Duty Disability Earnings reports. Mr. Duarte apprised the Board concerning the contract with J. A. Hanna Investment Advisory Service, Inc. stating that during his on - site visit he covered such areas as: 1) met with their accountant, 2) they have 29 permanent clients, 3) their office presently has 2336 sq. feet and they are looking to buy their own office, 4) current staff members can handle up to 5 to 8 more clients, 5) they target clients of 50 million dollars or more in assets, 6) he met with Bill Hutchens, Mike Cameron & other members of the staff, 7) due -diligence contract, 8) Mr. Duarte indicated that he would have all his notes typed up and given to the Board, etc. Mr. Rubley, also, informed the Board that he had: 1) contacted 7 or 4 Employees Retirement System July 23, 1992 8 clients for references and they are very solid, 2) most of their clients have been with them 3 to 4 years and the clients are very happy, 3) reviewed J. A. Hanna's credit report, 4) received Dun & Brad Street's report, 5) drafted a contract with Hanna and having the Law Department to review this contract, 6) would like to send to Hanna as soon as the contract is reviewed by Melvin McWilliams, Law Dept., 7) would like comments from the Board concerning the contract services, 8) Hal Rossen, Prudential-Bache, is sending the June 6/30/92 report, 9) he will call NBD for link up so data will be sent to J.A. Hanna and terminate soft dollars for Prudential- Bache, etc. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. It was moved by Trustee Goodin, supported by Trustee Pontz that the Board excuse Trustee Benavides, Brewington and McKane. Adopted by the following vote: Unanimously. It was moved by Trustee Pontz, supported by Trustee Perdue that the Board approve appointing the Vice -Chair, Trustee Moye, to the position of Chairperson to serve out the remainer of the regular term of office for calendar year 1992. Adopted by the following vote: Unanimously. It was moved by Trustee Perdue, supported by Trustee Goodin that the Board appoint Trustee Pontz to the position of Vice -Chairperson to serve out the remainer of the regular term of office for calendar year 1992. Adopted by the following vote: Unanimously. Trustee Pontz left the meeting at 10:00 A.M. The Board adjourned at 10:00 A.M. due to the lack of a quorum. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of June 30, 1992, and presented a brief overview of the transactions by the outside money managers. In addition, Mr. Rubley handed out to the Board copies of a sheet entitled, Public Retirement fund Data Base - 3/31/92 - returns including income in 5 percentile increments from Prudential Securities and copies of a memorandum to the clients of M.D. Sass re: update on Executive Life Rehabilitation Plan. Mr. Rubley informed the Board: 1) short term interest rates have fallen off, 2) -equity market was down and at a standstill will be 5 Employees Retirement System July 23, 1992 until the election is over, 3) June portfolio was down 1.93% , 4) there was no change on the value or interest rates on M. D. Sass bonds and this is subject to the appeal and hearing in August, 5) S & P down 1.4%, etc. Trustee Pontz return to the meeting for just a minute and a quorum was present. At that time, Ruby White, Retirement Technician, reported to the Board for their information only, that Carol Rapson had selected her brother as her beneficiary under Option B. The Meeting Adjourned at 10:00 A.M. Stephen W. Duarte, Secretary Employee Retirement System 9 "Revised Minutes" OFFICIAI, PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for August August 20, 1992 Council Conference Room Thursday, 8:40 A.M. loth Floor, City Hall Lansing, Michigan The "Bc-aFd met in regular session and was called to order by the Chairman, Robert Moye, at 8:40 A.M. -J Present.: Trustee Goodin, Moye, Murphy, Perdue and Pontz - 5 Absent:. Trustee Benavides, Brewington & McKane - 3 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright and Doug Rubley, Finance Dept.; Ed Piloske, Internal Audit Dept.; and Melvin McWilliams, Chief Assist. City Attorney It was moved by Trustee Perdue, supported by Trustee Pontz that the minutes of the regular meeting for July 23, 1992, be approved. Adopted by the following vote: Unanimously The Secretary reported 1 new member, 0 reinstatements, 3 refunds, 0 transfers and 10 retired. Total Membership: 808. Refunds made since the last regular meeting $13,457.24. Retirement allowances paid for the month of July, 1992 amounted to $311,000.31. Total number of retirement checks printed ERS 479, total retirement checks printed for all three systems 874. The Board received and placed on file the request for a Deferred Retirement Status under the Early Retirement Incentive (2.75% and 5 added years) of service for Mary Ann Melius, Public Service Dept., effective May, 2001. It was moved by Trustee Perdue, supported by Trustee Murphy that the Board approved the following applications for Retirement under the Voluntary Reduction in Work Force with 5 additional years included: Doug P. Finley, Parks Dept., 24 years 4 months service credit, age 47, and effective August 15, 1992. Donovan A. Hanna, Planning Dept., 25 years 8 months service credits, age 42, and effective August 22, 1992. Donald A. Melius, Sr., Public Service Dept., 24 years 4 months service credit, age 60 and effective August 8, 1992. Freddie L. Harris, Public Service Dept., 39 years 9 months service credit, age 59 and effective August 1, 1992. and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Goodin, Moye, Murphy, Perdue and Pontz - 5 Nays: None Discussion was held re: request for Non -Duty Death benefits for James Hoye, Parks Dept. Mr. Duarte advised that Mr. Hoye had not filled out the form entitled "Acceptance of Early Retirement Option Form" for the Voluntary Reduction in Force. Melvin McWilliams, Chief Assist City Attorney, advised that the new retirement incentive does not apply. It was moved by Trustee Pontz, supported by Trustee Murphy that the Board approve a Non -Duty Death Retirement Status for James Hoye, Parks Dept., deceased 7/25/92, 14 years 11 months service credit, age 46 and effective July 25, 1992, with the 2.5% multiplier. Adopted by the following roll call vote: Yeas: Goodin, Moye, Murphy, Perdue and Pontz - 5 Nays: None Mr. Duarte stated that the item re: Ordinance Amendment from Attorney's Office on the Early out retirement program - Board of Trustee's functions should be deleted from the agenda. Discussion was held on legal opinion re: Workers Compensation in relation to coordination of other benefits. Melvin McWilliams, Chief Assist. City Attorney, advised that the Attorney for Merle Lemon was not happy with the opinion and has filed to the Court of Appeals. The City is required to coordinate under the worker's compensation statue. Mr. Rubley informed the Board on the status of the contract with J.A. Hanna advising; 1) sent out sample of contract with Hannah, 2) distributed to the Board a sheet showing items to be added to the contract, 3) asked for authorization for the Board Chairperson to sign the contract after Hannah has signed, etc. It was moved by Trustee Goodin, supported by Trustee Perdue that the Board authorize the Chairman to sign the contract with the consulting firm of J. A. Hannah after the contract has been signed by them. Adopted by the following vote: Unanimously. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. Mr. Duarte distributed copies of the schedule for the MAPERS Fall Conference to be held at the Amway Grand Plaza Hotel in Grand Rapids, Michigan from Sunday October 18, 1992 thru Tuesday, October 20, 1992. The Secretary stated that there are rooms reserved and asked the Trustees to inform Ms. Seldenright within the next week if they plan to attend the conference. It was moved by Trustee Pontz, supported by Trustee Perdue that the Board excuse Trustee Benavides, Brewington and McKane. Adopted by the following vote: Unanimously Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of July 31, 1992, and presented a brief overview of the transactions by the outside money managers. In addition, Mr. Rubley informed the Board that; 1) the contract has been sent to J. A. Hannah, 2) the report from Prudential Bache was received for the quarter ended June 30, 1992, 3) sent letter to the investment managers informing them that we had terminated our soft dollar arrangement with Prudential-Bache, 4) sent letter to managers on NBD for security lending, 5) terminated contract with Prudential Bache as of June 30, 1992,.6) City's contribution will be used on a monthly basis for system expenses. Mr. Rubley also advised the Board that: 1) the market was up last month, 2 ) Sass did not perform as well and indicated that the lower court in California sent a proposal to those who owned bonds - the bonds had fallen from 40 to 25 and are now at 30, 3) there may be a hearing to educate the bond holders and Mr. Duarte, and Melvin McWilliams, Chief Assist. City Attorney, should be present at the hearing for financial and legal purposes, 4) S & P up 3.94% and all managers exceeded except one, 5) would like to bring in the S&P manager this fall and also bring in other managers once J. A. Hannah is on board, etc. The Meeting Adjourned at 9:19 A.M. Stephen W. Duarte, Secretary Employees Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for September September 17, 1992 Council Conference Room Thursday 8:35 A.M. 10th Floor, City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairman, Robert Moye, at 8:36 A.M. Pre4enij: Trustee Brewington, Goodin, McKane, Moye, Murphy, Perdue r� and Pontz - 7 Absent: Trustee Benavides - 1 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright, Doug Rubley & Ruby White, Finance Dept.; Ed Piloske, Internal Audit; and Melvin McWilliams, Chief Assist City Attorney; and Jack Sweet, retiree It' wa moved by Trustee Perdue, supported by Trustee Pontz that the minutes, be approved as amended by deleting the words, since there was no formal request, in paragraph two on the second page. Adopted by the following vote: Unanimously The Secretary reported 2 new members, 0 reinstatements, 0 refunds, 0 transfers and 8 retired. Total Membership; 802. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of August, 1992 amounted to $331,006.81. Total number of retirement checks printed ERS 485, total retirement checks printed for all three systems 884. Trustee McKane arrived at 8:45 A.M. It was moved by Trustee Pontz, supported by Trustee Perdue that the Board approve the following applications for Retirement under the Voluntary Reduction in Work Force with 5 additional years included: Robert W. Bell, Public Service Dept., 35 years 3 months service credit, age 64, effective October 2, 1992, Vickie L. Bell, City Clerk Dept., 22 years 1 month service credit, age 43, effective September 16, 1992 Fred R. Brown, Public Service Dept., 36 years 4 months service credit, age 56, effective September 19, 1992 Turney T. Gratz, Jr., Planning & Mun. Dev. Dept., 20 years 4 1 Employees Retirement System September 17, 1992 months service credit, age 45, effective September 26, 1992 Jay C. Lane, Planning & Mun. Dev. Dept., 37 years 2 months service credit, age 51, effective August 1, 1992 L. C. Murningham, District Court, 13 years 1 month service credit, age 65 effective August 29, 1992 Robert W. Ryan, Human Resources Dept., 22 years 7 months service credit, age 45, effective September 1, 1992 Ronald Stonehouse, Planning & Mun. Dev. Dept., 25 years 7 months service credit, age 47, effective September 16, 1992 and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: _ Yeas: Brewington, Goodin, McKane, Moye, Murphy, Perdue and Pontz - 7 Nays: None It was moved by Trustee Perdue, supported by Trustee Murphy that the application for Regular Age and Service for Danny B. Hudson, Parks & Recreation Dept., 27 years 8 months service credit, age 60, effective September 1, 1992, be approved and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Brewington, Goodin, McKane, Moye, Murphy, Perdue and Pontz - 7 Nays: None Mr. Duarte, Secretary, advised the Board that per the labor negotiation settlement effective June 30, 1992 the job classifications of Park Security Officer I and III were eliminated and the incumbent employees holding these positions were to be laid off. The affected employees have the following options: 1) accept the layoff and exercise his rights under the Michigan Employment Security Act; 2) exercise an early retirement option of Age + Service = 65 points and 3) accept a preferential hiring opportunity of a position in the Lansing Police Department for which they qualify for. Mr. Duarte also indicated that a letter had been received from Mr. Paul Arnold, Police Officer I, Lansing Police Dept. advising the Board that he disagreed with the City's refusal to credit him with 18 years of service earned as a Park Security Officer, and with the City's position that medical and dental benefits already frozen under the prior collective bargaining agreement at 15 years of service, will have to be repurchased. 2 Employees Retirement System September 17, 1992 The Board received the letter and placed it on file. Mr. Duarte stated that the Board cannot resolve this issue as it was a negotiated settlement, and the Labor Relations Department will handle this issue. Mr. Duarte informed the Board that the item on the Proposed Ordinance Amendment for the Usage of the 20% Member Fund may be addressed by Ms. White under the item of other business. The Secretary reported that there were no'Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. It was moved by Trustee McKane, supported by Trustee Murphy that the Board excuse Trustee Benavides from the meeting. Adopted by the following vote: Unanimously. Chairperson Moye informed the Trustees that a letter had been addressed to the Retirement Board from Mr. Jack Sweet, retiree, conc�=ing he and his wife's medicare premium reimbursement. Mr. Duarte, Secretary, advised that he has had two meetings with Mr. Sweet concerning this matter, and that he has contacted Blue Cross to see if they will reimburse the City for a portion of the premium. Mr. Duarte added that this is not a retirement pension issue and will be handled by administration. Mr. Duarte updated the Board with some background on the prefunding of health care and the issue of the recommendation for the Usuage of the 20% Member Fund, since the June Board meeting, and discussion was held. Mr. Duarte agreed that this proposal will be forwarded along with the proposal to Prefund Health Care for the Employee's Retirement System to the City Council for action. It was moved by Trustee Brewington, supported by Trustee Perdue that the Board request that the Mayor and City Council move forward on draft *4 on the Prefunding of Health Care along with the two additional amendments provided by Melvin McWilliams, Chief Assist. City Attorney. Adopted by the following vote: Unanimously. Mrs. White addressed the Board regarding the status of the 20% Member Reserve Fund proposal (which has n^t vet had a public hearing) and which has been on hold awaiting prefun,-34-- .-1 health care. It was moved by Trustee Murphy, supported by Trustee Perdue that the Board move to refer the proposal as updat-A by the City 3 Empl.,Dyees Retirement System September 17, 1992 Attorney in June 1992 of -the Usuage of the 20% Member Fund to the City Council. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for .=unds evaluation as of August 31, 1992, and presented a brief overiiew of the transactions by the outside money managers. Mr. Rubley informed the Board on the following items: 1) the City Is contribution is approximately 3.4 million dollars for FY 93, 2) employees contribution will total approximately $430,000, 3) $115,000 a month will come from money managers to meet anticipated expenditurers this year, 4) bond market was down through August, 5) S & P down 2.4%, 6)'J. A. Hannah will be asked to review how Lazard is managing our assets in relation to other "value" managers, 7) the Chairperson will be signing the contract- with J. A. Hannah today, 8) the Board will have their first meeting with Hannah in November, etc. Mr. Sweet was asked if he had any comments under public comments or items not on the agenda and he stated he did not. The Meeting Adjourned at 9:25 A.M. Stephen W. Duarte, Secretary Employees Retirement System 4 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for October October 22, 1992 Council Conference Room Thursday 8:38 A.M. 10th Floor, City Hall Lansing, Michigan The Board met in regular session and was called to order by the Vice -Chairperson, Rita Pontz, at 8:38 A.M. Present: Trustee Benavides, Brewington, Goodin, McKane, Murphy, Perdue and Pontz - 7 Abler t1,: Trustee Moye - 1 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright, Doug Rubley, Jan Lazar and Ruby White, Finance - Department; Ed Piloske, Internal Dept.; Alan Sonnanstine, - Gabriel, Roeder, Smith & Co.; and Willie Dixon, Al Baker & Wyonia Daniels, Human Relations Dept. It was moved by Trustee Perdue, supported by Trustee Brewington that*the minutes of the regular meeting for September 17, 1992, be approved. Adopted by the following vote: Unanimously The Secretary reported 2 new members, 0 reinstatements, 0 refunds, 0 transfers and 8 retired. Total Membership; 796. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of September, 1992 amounted to $348,541.58. Total number of retirement checks printed ERS 494, total retirement checks printed for all three systems 891. Trustee Benavides arrived at 8:40 A.M. Alan Sonnanstine of Gabriel, Roeder, Smith and Company provided a presentation to the Board of Trustees on the report of the Annual Actuarial Valuation for December 31, 1991 highlighting such items as: 1) level of contribution rates, current assets, market value, achievement tests, contingency reserve, meeting financial objectives stating that the system is sound. Trustee McKane arrived at 8:46 A.M. Trustee Benavides left the meeting at 9:16 A.M. and returned at 9:25 A.M. It was moved by Trustee Benavides, supported by Trustee Perdue that the Board approve the following applications for Retirement under the Voluntary Reduction in Work Force with 5 additional years 01 Employees Retirement System October 22, 1992 included: Brenda Hull, Human Resources, 25 years 4 months service credit, effective January 5, 1993 Ruby White, Finance Dept., 30 years 3 months service credit, effective November 21, 1992 Raymond L. Cox, Public Service, 35 years service credit, effective October 17, 1992 Dane E. Bandy, Parks Dept., 31 years 3 months service credit, effective October 17, 1992 Lesley Ann Seldenright, Finance Dept., 29 years service credit, effective November 21, 1992 John Hazzard, Admin. Services -Bldg. Maint., 23 years 9 months service credit, effective October 24, 1992 and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Brewington, Goodin, McKane, Murphy, Perdue, and Pontz - 7 Nays: None A letter was read to the Board from Trustee Perdue announcing his resignation from the Board due to his retiring from the City of Lansing on January 4, 1993 under the Window of Opportunity. It was moved by Trustee Murphy, supported by Trustee Benavides that the Board accept Trustee Perdue's resignation from the Employees Retirement System Board of Trustee. Adopted by the following vote: Unanimously. It was moved by Trustee McKane, supported by Trustee Perdue that the Board approve the contract between the Board of Trustees - City of Lansing Employees Retirement System and Gabriel, Roeder, Smith and Company for normal actuarial and consulting services for the year beginning July 1, 1992, in the amount of $13,000.00, payable in quarterly installments of $3,250.00 and that the Board authorize the Chairperson to sign the contract pending approval as to form by the City Attorney and certification of funds by the City Controller. Adopted by the following vote: Unanimously. It was moved by Trustee Benavides, supported by Trustee Murphy that the Board excuse Trustee Moye from the meeting. 2 Employees Retirement System October 22, 1992 Adopted by the following vote: Unanimously. The Secretary informed the Board that later in the meeting he would be discussing an item on a change to the ordinance. Mr. Duarte, Secretary, advised the Board that there was an amended Domestic Relations Orders received on David Garcia and that he was in the processing of reviewing this EDRO. In addition, the Secretary informed the Board that there are no Eligible Domestic Relations Orders to be certified. Mr. Rubley distributed to the Board copies of the portfolio summary funds evaluation as of September 30, 1992, and presented a brief overview of the transactions by the outside money managers. Mr. Rubley informed the Board that: 1) we earned $1,746.00 under security lending in the month of August, 2) the City's contribution to the system was $3,405,000, 3) both the bond and equity market were good during the month, 4) both bond managers returned 1.46%, 5) there was a 1.55 % return on equity managers, 6 ) the S & P was up .9%, and 7) we will be meeting with the J.A. Hannah group in one week. Trustee McKane left the meeting at 10:03 A.M. Mr. Duarte distributed to the Board copies of an ordinance change for the City of Lansing, Michigan, to amend part 2, Chapter 292, of the Codified Ordinances of the City of Lansing, Michigan by adding new Section 292.51 providing for the payment from the Members' Benefit Fund of an additional retirement benefit once every two years. The Board reviewed this item and discussion was held. It was moved by Trustee Brewington, supported by Trustee Murphy that the Board approve sending to the City Council the amendments to the codified ordinance providing for the payment from the Members' Benefit fund for an additional retirement benefit once every two years provided the investment show a profit and further the original 20% plus 50 % of the interest shall not be deminished. Adopted by the following vote: Unanimously. Discussion was held concerning the fact that Bill Hutchens has left the firm of J.A. Hannah Investment Advisory Service, Inc. and that there were some concerns from the Police and Fire Board as to any possible wrong doings. Mr. Duarte, Secretary, recommended that the Board maintain the firm of J.A. Hannah and advised that John Hannah has agreed to be their main consultant. Mr. Rubley informed the Board that Mr. Hannah has hired two new individuals since Mr. Bill Hutchens left the firm and that the Police & Fire Retirement Board Employees Retirement System October 22, 1992 is doing a preliminary background check. It was moved by Trustee Benavides, supported by Trustee Murphy that the Employees Retirement System Board concurs with the Policemens and Firemens Retirement System Board and supports a routine background check by the FBI on the J.A. Hanna Investment Advisory Service, Inc. Adopted by the following vote: Unanimously Mrs. White, Retirement Technician, indicated that inquiry had been made concerning the possibility of a retiree setting on the Board of Trustee representing the large number of retirees from the City of Lansing. Trustee Pontz stated that there were two State of Michigan retiree presently setting on the Retirement Board for the State of Michigan. It was indicated that a change in the ordinance would need to take place in order for a retiree to set on the City of Lansing Employees Retirement System Board. The Meeting Adjourned at 10:19 A.M. Stephen W. Duarte, Secretary Employees Retirement System 4 ,JOINT BOARD MEETING :< 6 BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEM 8th Floor, Conference Room November 1P.,, 99� =r City Hall Tuesday, 9:9 M. Lansing, Michigan The Joint Board of Trustees was called to order and began at 9:34 A.M. Present: Board Members: Barkyoumb, Brewington, Luzynski, McKane, Moye, Absent: Benavides - 1 Braun, Cushman, Goodin, Kus, Murphy, Perdue, and Pontz - 12 Present: Others: Stephen W. Duarte, Secretary; Jan Lazar, Lesley Ann Seldenright, Ruby White & Doug Rubley, Finance Dept.; Ed Piloske, Internal Audit Dept.; and John Hannah of J.A. Hannah Investment Advisory Service. John Hannah of J.A. Hannah Investment Advisory Service distributed to the Board members copies of the booklets entitled, "Performance Evaluation for the City of Lansing Police & Fire Retirement System - for the period ended September 30, 1992 and, also, the "Performance Evaluation for The City of Lansing Employees Retirement System for the period ended September 30, 1992. Trustee Brewington arrived at 9:38 A.M. In his presentation, Mr. Hannah covered a few of the following items concerning the performance of the investment portfolio: 1) Macroeconomic and Macroeconomic review, 2) Beta, liquidity & selectivity, 3) Excess returns, 4) Attribution of returns, 5) Equity attribution, 6) Market capitalization, and 7) Fixed income. In addition, Mr. Hannah discussed with the Board: 1) Harbor Capital - total fund outperformed the broad index consistently over time; 2) Lazard Freres - underperformed the broad value index consistently throughout the year; 3) Loomis Sayles (bond -allocation attribution) portfolio had a positive return for the year; 4) M.D. Sass - outperformed the index - Executive life plagues portfolio returns; and 5) ANB Index fund - has mirrored the S&P 500. Trustee Pontz left the meeting at 10:43 A.M. Presentation continued covering the stock market, diversification and asset allocation. Trustee Perdue arrived at 10:45 A.M. Trustee McKane left the meeting at 10:55 A.M. of Mr. Rubley summarized with a briefDuarte erviewadvised theof thefBoaracthat the portfolio of both Boards. Mr. they should start today to look at itemhealth cares and inflow and outflow of such as asset allocation, cross trades, prefunding of heal cash. The Meeting Adjourned at 11:25 A.M. Stephen W. Duarte, Secretary Retirement Boards -Joint Board Meeting r� I Regular Meeting for November 8th Floor, Conference Room City Hall Lansing, Michigan OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM 3 November 10 pl9 2 Tuesday 11:35-t& The Board met in regular session and was called to order by the Chairperson, Robert Moye, at 11:35 A.M. Present: Trustee Brewington, Goodin, Moye, Murphy and Perdue - 5 Absent: Trustee Benavides, McKane and Pontz - 3 Present: Stephen W. Duarte, Secretary; Ruby White, Lesley Ann Seldenright, and Doug Rubley, Finance Dept.; Ed Piloske, internal Audit Dept.; Melvin McWilliams, Chief Assist. City Attorney It was moved by Trustee Goodin, supported by Trustee Murphy that the minutes of the regular meeting for October 22, 1992, be approved. Adopted by the following vote: Unanimously. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 5 retired. Total Membership: 791. Refunds made since the last regular meeting $.00. Retirement allowances paid for the month of October, 1992 amounted to $357,990.01. Total number of retirement checks printed ERS 495, total retirement checks printed for all three systems 895. The Board received and placed on file the following applications submitted under the RIF Incentive for Deferred Retirement or until age adds up to 65 points (2.75o multiplier) for: Bruce Meck, Data Processing Division, effective May 1998. Linda Droste, Personnel Department, effective April 1993. It was moved by Trustee Perdue, supported by Trustee Murphy the application for Regular Age and Service Retirement (UAW Members) for: Kenneth N. Dilts, Parks & Rec. Dept., 29 years 8 months service credit, age 59, effective 11/14/92 John C. Wabeke, Parks & Rec. Dept., 26 years 3 months service credit, age 57, effective 1/5/93 Marcella Faulkner, Public Service Dept., 27 years 2 months service credit, age 59, effective ll/1/92 Raymond G. Borghi, Parks & Rec. Dept., 31 years 8 months service credit, age 55, effective 11/21/92 Dennis C. Schrier, Parks & Rec. Dept., 32 years 2 months service credit, age 35, effective 12/1/92 be approved and that the Secretary make the necessary transfer of funds. Adopted by the following vote: Yeas: Brewington, Goodin, Move, Murphy and Perdue - 5 Nays: None It was moved by Trustee Perdue, supported by Trustee Murphy that the Board approve the following applications for Retirement under the Voluntary Reduction in Work Force with 5 additional years included: See Attached List: and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Brewington, Goodin, Moye, Murphy and Perdue - 5 Nays: None Mr. Duarte, Secretary, advised the Board that effective November 21, 1992, Trustee Bennie Perdue is resigning from the Board due to his retiring from the City of Lansing under the Window of Opportunity, and that the new trustee will complete Trustee Perdue's 4 year term ending June 30, 1994. The deadline for turning in nominating petitions will be 4:00 P.M. on Monday, November 30, 1992. Nominating petitions must contain not less than 25 nor more than 50 member signatures. Also, the Primary Election to determine nominees will be held over the two day period of Monday, December 14th and Tuesday, December 15, 1992. The General Election to select the trustee member will be held over the two day period of Monday, January 4th and Tuesday, January 5, 1993. Mr. Duarte also presented for the Board's approval the following names as election inspectors for the upcoming Park and Rec. Department Trustee election. They are: Meriane Schuling, Finance Dept., Jackie Porter, Finance Dept., Phyllis Jones, Finance Dept., Dixie Gilmore, Treasurer Division and Connie Castro, Income Div. It was moved by Trustee Goodin, supported by Trustee Brewington that the Board approve the above listed individuals as election inspectors for the Parks and Recreation Department Trustee election. Adopted by the following vote: Unanimously. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. It was moved by Trustee Goodin, supported by Trustee Murphy that the Board excuse Trustee Benavides, McKane and Pontz from the meeting. Adopted by the following vote: Unanimously. Mr. Rubley advised the Board that a date needs to be changed in the codified ordinance which was sent to the City Council from the Board concerning amendments providing for the payment from the Members' Benefit fund for an additional retirement benefit once every two years. Mr. Duarte, Secretary, added that he pulled this item from the Ways and Means Committee in order to make the change. Mr. Rubley informed the Board that he did not have a full report this month due to the early meeting date, but will be mailing the investment reports to the Board members as soon as all the information is available from National Bank of Detroit. Also, Mr. Rubley informed the Board that : 1) S & P is up . 2 5 0 , 2 ) ANB returned .350, 3) Harbor was up 2.880, 4) total assets earned thru security lending was $4,103.00, etc. The Meeting Adjourned at 11:55 A.M. Stephen W. Duarte, Secretary Employees Retirement System APPLICATION FOR RETIREMENT - VOLUNTARY REDUCTION IN WORK FORCE WITH 5 ADDITIONAL YEARS INCLUDED: WILLIAM C. ACHESON, PLANNING DEPT., 25 YEARS 9 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 44. ELIDA ALDACO, PARKS DEPT., 21 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 58. ALBERT A. BAKER, HUMAN RESOURCES DEPT., 27 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 55. BRENDA B.N. BALLARD , PLANNING DEPT. , 20 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 54. JON D. BAUER, PLANNING DEPT., 25 YEARS 8 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 53. RODERICK J. BEAUDRY, ADMIN. SERVICES DEPT., 25 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 41. BARBARA A. BELLMER, DISTRICT COURT, 22 YEARS 10 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 58. DAVID L. BENSON, POLICE DEPT., 22 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 49. ROBERT L. CRAMER, PARKS DEPT., 28 YEARS 9 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 47. DAUGLAS E. DALLMANN, PARKS DEPT., 28 YEARS 11 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 43. SALLIE S. DALLMANN, FINANCE -TREASURER DEPT., 17 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 50. WYNONIA DANIELS, HUMAN RESOURCES DEPT., 26 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 54. THOMAS M. DARCY, PUBLIC SERVICE DEPT., 28 YEARS 4 MONTHS SERVICE, EFFECTIVE 11/14/92, AGE 45. CAROL L. DIETZ, FINANCE -INCOME TAX DEPT., 27 YEARS, 6 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 43. WILLIE L. DIXON, HUMAN RESOURCES DEPT., 25 YEARS 8 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 50. DIANNA L. EMERSON, POLICE DEPT., 28 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 41. DONALD FOSTER, FINANCE DEPT., 20 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 12/5/92, AGE 63. JAMES N. FOULDS, PLANNING DEPT., 27 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 45. VERNON C . FOUNTAIN, PLANNING DEPT. , 36 YEARS 11 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 60. PATRICIA A. FOX, FINANCE DEPT., 20 YEARS 1 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 51. NELSON L. GAGE, PUBLIC SERVICE DEPT., 30 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 59. JAMES E. GATTON, PUBLIC SERVICE DEPT., 33 YEARS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 51. ROBERT L. GRAHAM, PLANNING DEPT., 25 YEARS 8 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 55. GENE E. GUILE, FINANCE DEPT., 26 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 55. CAROLYN HARTSUFF, CITY CLERK DEPT., 18 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 53. SANDRA HEARNS, PLANNING DEPT., 27 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 47. JAMES A HEPFER, POLICE DEPT., 32 YEARS 3 MONTHSSERVICE CREDIT, EFFECTIVE 1/5/93, AGE 47. RONALD LEE HERRING, FINANCE DEPT., 23 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 62. GEORGE W. HINMAN, PLANNING DEPT., 19 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 76. SEPHEN J. IZDEBSKI, PUBLIC SERVICE DEPT, 26 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 11/21192, AGE 43. GARY R. JACOB, PARKS DEPT., 32 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 50. WALTER R. KEPLER, PARKS DEPT., 32 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 54. BARBARA J. KERR, PLANNING DEPT., 23 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 66. PAMELA S. KLEIN, DISTRICT COURT, 23 YEARS 8 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 42. JOSEPH G. KLEINHANS, PARKS DEPT., 22 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 57. LOUIS S. KLIMECKY, INTERNAL AUDIT DEPT., 32 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 61. JAMES W. KZESKI, PLANNING DEPT., 31 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 56. GAYLE E. LACOURSIER, POLICE DEPT., 24 YEARS 10 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 45. JANET L. LAZAR, FINANCE DEPT., 22 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 46. JUANITA M. LEWIS, PARKS DEPT., 29 YEARS 10 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 59. ROBERT L. LOERKE, PARKS DEPT., 22 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 44. JESSE LOPEZ, HUMAN RESOURCES DEPT., 26 YEARS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 42. HOWARD G. MCCAFFERY, PUBLIC SERVICE DEPT., 25 YEARS 8 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 53. RICHARD E. MCCLYMONT, PUBLIC SERVICE DEPT., 28 YEARS 10 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 49. H. CLAY MCMILLEN, BUILDING DEPT., 25 YEARS 9 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 69. CAROL MILLER, ADMIN. SERVICES DEPT., 25 YEARS 5 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 50. VIRGINIA MITCHELL, FINANCE DEPT., 23 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 56. RENEE M. MURPHY, DISTRICT COURT, 28 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 43. ROY G. MURPHY, FINANCE DEPT., 22 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 44. SANDRA L. NORMAN, BUILDING DEPT., 22 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 11/6/92, AGE 42. CARL A. OZANICH, FINANCE DEPT., 20 YEARS 9 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 59. NANCY A. PARKES, DATA PROCESSING DEPT., 23 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 42. ROBERT S. PECK JR., DATA PROCESSING, DEPT, 23 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 44. BENNIE PERDUE, PARKS DEPT, 27 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 46. TREVA J. PETERS, DISTRICT COURT, 26 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 45. LYDIA PUENTE, FINANCE DEPT., 22 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 50. ROYCE E. PUGH, PLANNING DEPT, 25 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 46. DAVID L. PURVIS, ADMIN. SERVICES DEPT., 25 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 48. DONALD E RICE, FINANCE DEPT, 24 YEARS 11 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 60. MAXINE L. RICE, FINANCE DEPT., 20 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 45. JOHN R. RICHARDS JR., PARKS DEPT., 28 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 49. RICHARD L. RYALS, ADMIN. SERVICES DEPT., 30 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 45. JEANETTE M. SAVAGE, FINANCE DEPT, 18 YEARS 8 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 42. CAROL A. SCHAUTZ, FIRE DEPT., 25 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 11/14/92, AGE 51. SHEFFIELD, EMILY A., FIRE DEPT, 18 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 2/24/93 (DEFER RETIREMENT FROM 1/5/93 TO 2/24/93), AGE 46. JAMES R. SPACKMAN, PLANNING, DEPT., 32 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 51. GERALD F. SPAGNOLLY, PUBLIC SERVICE DEPT., 20 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 48. DIANA L. TERRY, FINANCE DEPT , 27 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 12/19/92, AGE 48. TERRY D. THOMPSON, PARKS DEPT., 32 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 11/21/92, AGE 45. ROBERT L. SPALDING, FINANCE DEPT., 19 YEARS 5 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 64. TERRY L. STEVENS,EFFECTIVE 11/14/92,'AGE,,4328 YEARS 8 MONTHS SERVICE CREDIT, PETER D. STOUGHON, PARKS A S D PT.,AGE 464 YEARS 10 MONTHS SERVICE CREDIT, EFFECTIVE DONNA J. STOUT, POLICE1/5/93, 3 D AGE 48. 5 YEARS 11 MONTHS SERVICE CREDIT, EFFECTIVE/ ALAN E. TUBBS, PLANNING DEPT., 27 YEARS 4 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 53. ROBERT J. WADKINS11PARKS DEPT., AGE40..4 YEARS 9 MONTHS SERVICE CREDIT, EFFECTIVE / JAMES M. WALLACE, POLICE DEPT., 26 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 40. JACQUELINE WARR, HUMAN RELATIONS DEPT., 27 YEARS 5 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 56. DELORES I. WHITE, PARKS DEPT., 20 YEARS 3 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 60. LEORA R. WHITE, PUBLIC SERVICE DEPT., 23 YEARS 7 MONTHS SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 55. DOUGLAS C. WILEY, PERSONNEL 2DGET., 21 YEARS 5 MONTHS SERVICE CREDIT, EFFECTIVE / PATRICIA J. WOJTYS AK, POLICE DEPT., 25 YEARS 2 MONTHS SERVICE CREDIT, EFFECTIVE / / , A JAMES F. WOLTER, PUBLIC SERVICE DEPT., 29 YEARS 6 MONTHS SERVICE CREDIT, EFFECTIVE 11/14/92, AGE 46. RICHARD E. WOODS, PLANNING DEPT., 22 YEARS 1 MONTH SERVICE CREDIT, EFFECTIVE 1/5/93, AGE 49. JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT 8th Floor, Conference Room City Hall SYSTEMS W c December 1 �99-2 Tuesday, 10:10.m. t The Joint Board of Trustees was called to order at 10:10 qm. ,� Present: Trustees Barkyoumb, Braun, Brewington, Cushman,�o in, Kus, Moye, Murphy and Pontz - 9 Absent: Trustees Benavides, Luzynski and McKane - 3 Present: Doug Rubley, Teri Cook, Finance Dept.; Ed Piloske, Internal Audit; Mel McWilliams, Law Dept.; Ruby White; Claire Sonnenberg and John Hannah of J.A. Hannah Investment Advisory Service; Tom Franzese and Peter McCarthy, Lazard Freres. Mr. Hannah, of J.A. Hannah Investment Advisory Services, met briefly with Board and introduced Clair Sonnenberg, Vice President for Investment Services. Mr. Hannah suggested some questions the Boards should pose when meeting with Lazard Freres. Are they adhering to a value style? Are they doing what they said they would do? Mr. Hannah stated that Lazar Freres has under performed compared to other managers. Also, they under performed their own reported numbers. The last three years they have trailed off. Lazard Freres joined the meeting at 10:45 a.m. to discuss were they are going and where they have been. Lazard Freres passed out its Asset Management book and a summary of the book. Discussion was held on the material. Mr. McCarthy stated that they were disappointed in their performance. Mr. McCarthy stated that they were value managers. Mr. Hannah asked if they would trace value index or broad market. Mr. Franzese stated that they look at the return on equity plus price relative to book value. Mr. Rubley asked if Lazard Freres decides to invest in Firm A, then change to Firm B. How do they decide who gets Firm -A and who gets Firm B . Mr. McCarthy stated that they went to a SECC audit and they go to a randomly selected lot. Trustee Brewington left the meeting at 11:20 a.m. Mr. Franzese stated that a commingle fund is used as a tool with portfolios. The firm put new fund in effect January of 1991. Trustee Pontz left the meeting at 11:30 a.m. City of Lansing Retirement Systems Joint Board Meeting of December 15, 1992 Page 2 Trustee Cushman stated that other investment professionals question whether Lazard Freres is a value manager. Mr. Franzese stated that nothing has changed. They use price to book and return on equity as value indicators. Mr. Franzese stated that the City should see a change within the next six months. It was asked what areas the City should watch. Mr. Franzese stated four areas to watch. 1) Income increase; 2) Spending increase; 3) Employment increase; 4) Corporate profits increase. Mr. McCarthy and Mr. Franzese of Lazard Freres left the meeting at 12:05 p.m. Mr. Rubley stated that the City has problems with Lazard Freres in their short-term performance and their long-term performance. The Boards should look at diversifying in equity side. Mr. Rubley stated that the next time the Boards hire money managers they should have some constraints or scope of responsibility. Mr. Rubley recommended Lazard Freres be put on probation for six months. Mr. Rubley said the City should put in writing the six month period that Lazard Freres stated that it would take to see a turn around. Claire Sonnenberg handed out the Retirement System User's Guild that was prepared by the Hannah Group and briefly explained the guide. The meeting adjourned at 12:45 p.m. Douglas L. Rubley, Interim Secretary Retirement Boards -Joint Board Meeting W co -< OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES � CITY OF LANSING ----) I - rT EMPLOYEES RETIREMENT SYSTEM r: December: , 19 f- Regular Meeting for December Thursday, 8th Floor Conference Room —i o c The Board met in regular session and was called to ordeb the Chairperson, Robert Moye, at 8:35 a.m. Present: Trustee Brewington, Goodin, McKane, Moye, Murphy and Pontz - 6 Absent: Benavides - 1 Present: Stephen Duarte, Secretary, Douglas Rubley, Steven Dougan and Teri Cook, Finance Dept.; Edward Piloske, Internal Audit; Melvin McWilliams, Law Dept. The Secretary reported 0 new members, 1 reinstatements,0 refunds, 9. Refunds 0 transfers and 5 retired. Total active 0membership: 74 allowances made since the last regular meeting: $0 paid for the month of November, 1992 amount to $3tot 1 . 5 537, retirement number of retirement all three systemsdER 940. checks printed Trustee McKane arrived at 8:45 a.m. It was moved by Trustee Goodin, supported by Trustee Murphy that the Board approve the request for refund of accumulathe ted contributions from Susan J. Nye, who left 911 fothe position n following roll Fire Department. This motion was adopted by call vote: Murphy, Pontz - 6 Yeas: Brewington, Goodin, McKane, Moye, Nays: None It was moved by Trustee Murphy, supported by Trustee Board approve the application for Regular Age Retirement for: Armsted, James D., Lansing Housing Commission, 11 ears 2 months, y Age 69, effective December 26, 1992. Yerian, Alfred D., Public Service, 26 years 2 months, Age 51, effective December 1, 1992. The motion was approved by the following roll call vote: - 6 Pontz Yeas: Brewington, Goodin, McKane, Moye, Murphy, Nays: None Pontz that the and Service t�-� Employees Retiremfnt system December 17, 1993 Regular Meeting o e 2 Pag Goodin, supported by Trustee Brewington Trustee Goo it was moved by laced on file the following that the Board received and p applications submitted under the plRsdlserviceadds up Deferred Retirement until Ito e651points p age (2.75o multiplier) for: g, 1993. Ellison, Ricky T., Administrative Services, effective July Fowler, Pamala K., Mayor's Office, effective December 5, 1993. Green, Karen K., Police Department, effective December 1, 2001. effective July 1, 1996. Kazenko, Rosemarie, Mayor s Office, 5' McCook, Jacqueline J., Police Department, effective February 1993. istrative Services, effective March 25, Teall, Stephen D., Admin 1993. This motion was adopted by the following roll call vote: Yeas: Brewington, Goodin, McKane, Moye, Murphy, Pontz - 6 Nays: None Trustee that Goodin, supported by Trustee Murphy it was moved by lications for retirement under the Board approved the following app years the voluntary Reduction in Work Force with 5 additional included: See attached list: Adopted by the following roll call vote: Yeas: Brewington, Goodin, McKane, Moye, Murphy, pontz - 6 Nays: None Secretary to the Employees' Retirement system Stephen Duarte, petition was received by certified that one nominating onpNovember 30, 1992, for John S. Retirement Office by 4:00 P- one party running for Brodie, Parks and Recreation. Due to only trustee, it will not be necessary t and 1Recreatd an i on Trusteeh to Jthe S. Brodie shall be deemed Parks Employees' Retirement System and will serve on the Board from January 1, 1993 through June 30, resigning his position as A letter was read from Trustee Roy Murphy Retirement option. trustee due to his .acceptance a t on is effecti veof tharly December 18, 1992. Trustee Murphy s Employees Retirement System Regular Meeting of December 17, 1992 Page 3 The deadline for receipt of nominating petitions will be 4: 00 p.m. on Tuesday, January 19, 1993. Nominating petitions must contain not less than 25 nor more than 50 member signatures. The Primary Election to determine candidates for the General Election will be held over the two day period of Monday, February 1, and Tuesday, February 2, 1993. The General Election, if necessary, to select the trustee member will be held over the two day period of Monday, February 15 and Tuesday, February 16, 1993. Mr. Duarte presented for the Board's approval the following names as election inspectors for the upcoming Trustee Election. They are: Toni Glascoe and Joseph Jardine, Public Service Department. It was moved by Trustee Brewington, supported by Trustee McKane that the Board approve the above listed individuals as election inspectors for the Trustee Election. Adopted by the following vote: Unanimously. A letter was received from Julia M. Cherry, District Court, requesting to buy back her service credits. This items was tabled for more information. The schedule for meeting dates for 1993 was reviewed. It was moved by Trustee McKane, supported by Trustee Murphy that the schedule of meeting dates for 1993 be approved. Adopted by the following vote: Unanimously. Mr. Duarte stated that there were no Domestic Relations Orders Received. Mr. Duarte stated that he had certified one Eligible Domestic Relations Order regarding David Garcia. It was moved by Trustee McKane, supported by Trustee Goodin to excuse Trustee Benavides from the meeting. Adopted by the following vote: Unanimously. Mr. McWilliams passed out draft #1 of an amendment to Chapter 292 of the Codified Ordinances of the City of Lansing by adding a new section 292.32 to authorize the Board of Trustees to implement early retirement benefits. Discussion was held on the wording of the amendment. Changes were suggested and Mr. McWilliams had the changes implemented and gave the board copies of draft 42. It was moved by Trustee Brewington, supported by Trustee McKane that the Board approve Draft 02 an ordinance to amend Chapter 292 of the codified Ordinances of the City of Lansing by adding a new section 292.32 to authorize the Board of Trustees to implement early retirement benefits. Adopted by the following vote: Unanimously. Employees Retirement System Regular Meeting of December 17, 1992 Page 4 Trustee McKane stated that this was his last Board meeting. He thanked everyone on the Board. Trustee McKane wished the Board the best of luck and a Happy Holiday. Mr. Duarte stated that the Prefunding Ordinance had been referred to the Ways and Means Committee. The Committee. . did danot wact al ant to recommend it to City Council until they rove the report. Mr. Duarte encouraged the Committee to app ordinance. Mr. Duarte encouraged the Board to continue to pursue this issue. Mr. Rubley suggested, after meeting with Lazard Freres at Joint Board Meeting, that the Board put Lazard Freres on six month probation. Mr. Rubley recommended that the City lower its equity exposure. He would like to draw $1-2 million. It was moved by Trustees Brewington, supported by Trustee McKane that the Board put Lazard Freres on six months probation. Adopted by the following vote: Unanimously. Also, Mr. Rubley advised the Board on the external management performance for December 1992. The meeting adjourned at 10:05 a.m. Douglas L. Rubley, Interim Secretary Employees Retirement System Application for Retirement - Voluntary Reduction in Work Force with 5 Additional Years Included: Blair, James D., City Clerk, 24 years 0 months service credit, age 47, effective January 5, 1993. Cool, Robert A., Parks & Recreation , 27 years 9 months service credit, age 49, effective January 5, 1993. Coscarelli, Wilma J., Planning & Municipal Development, 25 years 0 months service credit, age 50, effective January 5, 1993. Dryer, Evelyn M., Public Service, 18 years 8 months service credit, age 56, effective January 5, 1993. Duarte, Stephen, Finance Department, 23 years 5 months service credit, age 45, effective January 5, 1993. Gunter, Elizabeth, Planning & Municipal Development, 19 years 7 months service credit, age 45, effective January 5, 1993. Heckaman, Terry, Public Service -O&M, 28 years 0 months service credits, age 42, effective November 15, 1992. Kanazeh, Joseph, City Council/Internal Audit, 25 years 6 months service credit, age 50, effective January 5, 1993. Kessler, Kaye, Administrative Services, 19 years, 8 months service credit, age 50, effective January 5, 1993. Kruch, Robert A., Planning & Municipal Development, 22 years 9 months service credit, age 47, effective January 5, 1993. Kundrock, Carlene M., Public Service/Wastewater, 21 years 6 months service credit, age 56, effective January 5, 1993. McKane, Terry, Mayor's Office, 26 years 9 months service credit, age 51, effective December 29, 1992. Millet, Catherine M., Human Relations, 29 years 4 months service credit, age 53, effective January 5, 1993. Piloske, Edward J., City Council/Internal Audit, 24 years 7 months service credit, age 46, effective January 5, 1993. Pulver, Kenneth D., Public Service, 17 years, 0 months service credit, age 55, effective January 5, 1993. Ransom, Walter G., Public Service, 30 years 4 months service credit, age 44, effective January 5, 1993. Spencer, Thomas E., Public Service, 20 years 11 months service credit, age 49, effective January 5, 1993. Stock, Kenneth J., Assessor, 29 years 7 months service credit, age 46, effective January 5, 1993. Stout, Donna J., Police Department, 25 years 11 months service credit, age 48, effective January 5, 1993. Stowell, Ronald J., Administrative Services, 22 years 2 months service credit, age 43, effective January 5, 1993.