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HomeMy WebLinkAbout1993 Employee's Retirement System Board MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting of January 8th Floor Conference Room w January 2,, 1,993 T' Thursday, 8 =4.0 a . rrim.' c: The Board met in regular session and was called to orde�y' t4 Secretary, Douglas Rubley, at 8:40 a.m. C� c� Present: Trustee Brewington, Goodin, Crawford, Brodie and Pontz - 5 Absent: Trustee Benavides and Moye -.2 Others: Douglas Rubley, Interim Secretary, Steve Dougan and Teri Cook, Finance Department, Michelle Restainer, Building Safety Division and Melvin McWilliams, Law Department. It was moved by Trustee, supported by Trustee Goodin to elect Trustee Pontz as Chairperson. Adopted by the following vote: Unanimously. It was moved by Trustee Brewington, supported by Trustee Crawford to elect Trustee Goodin as Vice Chairperson. It was moved by Trustee Crawford, supported by Trustee Goodin that the minutes of the Regular Meeting of December 17, 1992 and the Joint Board Meeting of December 15, 1992 be approved as submitted. Adopted by the following vote: Unanimously. Michelle Restainer was present and asked the Board where the retirement funds stand for those employees that have stayed. Mr. Rubley stated that employee contribution makes up 3%. The vast majority are still in the employees retirement system. Also, Mr. Rubley stated that the actuary report should be available in August 1993, but that the system is actuarial sound. The Secretary reported 0 new members, 0 reinstatements, 1 refund, 0 transfers and 6 retired. Total active membership: 743. Refunds made since the last regular meeting: $0.00. Retirement allowances paid for the month of December, 1992 amounted to $473,883.88. Total number of retirement checks printed ERS 543, total retirement checks printed for all three systems 945. Mr. Rubley stated that there were no Domestic Relations Orders received. Mr. Rubley stated that there were no Eligible Domestic Relations Orders certified. Employees' Retirement Ssytem Regular Meeting of January 21, 1993 Page 2 It was moved by Trustee Crawford, supported by Trustee Goodin to excuse Trustee Benavides and Moye from the meeting. Adopted by the following vote: Unanimously. Tabled Item(s): It was moved by Trustee Crawford, supported by Trustee Goodin that Mr. Rubley would send a letter to Julia Cherry, regarding her request to buy back service credits, informing her that her request is being reviewed by the Law Department and a decision will be made at the next board meeting. Adopted by the following vote: Unanimously. Other Business: Mr. Rubley stated to the board that there was an error made on three individuals (Robert Dexter, Freddie Harris and Robert Trowbridge) benefit calculations. It was moved by Trustee Crawford, supported by Trustee Brewington that a letter be sent to these individuals informing them of the overpayment and that a reduction will be made in their checks over a twelve (12) month period. Mr. Rubley stated that some retirees have listed someone other than their spouse as beneficiary on their retirement application. Discussion was held on who would constitute an insurable interest. Trustee Pontz stated that the State names their eligible beneficiaries. It was moved by Trustee Crawford, supported by Trustee Goodin that this items be referred to Mr. McWilliams for legal opinion. Adopted by the following vote: Unanimously. Mr. Rubley informed the Board that he had received an application for reciprocal retirement from Russ Galvin. This was submitted for information only. Mr. Rubley presented to the Board a copy of the revised Retirement Plan Information Sheet along with a copy of the original and indicated that the only changes were that the language was made clearer. Mr. Rubley stated that there were two nominating petitions received by the Retirement Office by 4:00 p.m. on January 19, 1993. The nominating petitions for Brinton Butler and Douglas Rubley were certified by Steve Dougan. Mr. Rubley stated that if he was elected and was still serving as Interim Secretary to the Board that he would take a leave of absence, as Trustee, from the Board. It was moved by Trustee Crawford, supported by Trustee Brewington to have Vice Chair Goodin count and certify the ballots. Adopted by the following vote: Unanimously. Employees' Retirement System Regular Meeting of January 21, 1993 Page 3 Mr. Rubley stated that he would like to have a Joint Board Meeting on February 16, 1993 to bring in American National Bank and the J.A. Hannah Group to discuss how to transition when letting a money manager go. Trustee Crawford let the meeting at 9:24 a.m. Meeting adjourned due to lack of a quorum. Mr. Rubley reviewed the performance of the money managers. The meeting adjourned at 9:24 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System loth Floor, City Hall Lansing, MI JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS Conference Room February 16, 1993 Tuesday, 9:40 a.m. The Joint Board of Trustees was called to order at 9:40 a.m. Present: Board Members: Trustees Barkyoumb, Benavides, Brodie, Crawford, Cushman, Goodin, Kus, Lankheet, Luzynski and Pontz - 10 Absent: Trustee Brewington and Moye - 2 Present: Others: Douglas Rubley, Secretary; Steve Dougan, Teri Cook, Finance Department; Frank Speno, Steve Manus, ANB Investment Management; Claire Sonnenberg and John Hannah, J.A. Hannah Investment Advisory Service. Mr. Speno and Mr. Manus, ANB Investment Management, were present to discuss the transition if a money manager was terminated. It was stated that the object is to minimize the cost associated with reinvesting money. Three methods were discussed. 1) Put assets into existing index fund; 2) "Structure" existing portfolio to resemble index; 3) Move money to new manage in stock, cash or both. Mr. Speno and Mr. Manus, ANB Investment Management left the meeting at 10:15 a.m. Ms. Sonnenberg, J.A. Hannah Investment Advisory Service, passed out the Performance Evaluation of the money managers for the Police and Fire and General Employees' Retirement Systems for the period ending December 31, 1992. Ms. Sonnenberg reviewed each manager's performance for both retirement systems. Mr. Hannah stated that Lazard Freres still under performed for the first three months of their six month probation. Trustee Cushman asked if Mr. Hannah thought they would see any turnaround from Lazard Freres. Mr. Hannah did not expect to see any significant change. Mr. Hannah passed out a survey and asked if Board members would fill it out and return them to him. The survey was to help the J.A. Hannah Investment Advisory Service better serve the needs of the City. orgy The meeting adjourned at 12:30 p.m. es. ''jvC'7 = `� �8 Douglas L. Rubley, Interim Secretary Retirement Boards -Joint Board Meeting OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting 8th Floor Conference Room February 18, 1993 Thursday, 8:45 a.m. The Board met in regular session and was called to order by the Secretary, Douglas Rubley, at 8:45 a.m. Present: Trustee Brewington, Brodie, Goodin, Moye and Pontz - 5 Absent: Trustee Benavides and Crawford - 2 Others: Douglas Rubley, Interim Secretary, Steve Dougan and Teri Cook, Finance Department and Melvin McWilliams, Law Department. It was moved by Trustee Moye, supported by Trustee Goodin that the minutes of the regular meeting of January 21, 1993 be approved with one correction. Adopted by the following vote: Unanimously. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 62 retired. Total active membership: 681. Refunds made since the last regular meeting: $0.00. Retirement allowances paid for the month of January, 1993 amounted to $603,581.89. Total number of retirement checks printed ERS 605, total retirement checks printed for all three systems 1,015. It was moved by Trustee Goodin, supported by Trustee Moye that the application for regular age and service retirement for Herman P. Gay, Parks and Recreation, 25 years 5 months service credit, age 61, effective February 6, 1993 be approved. Adopted by the following roll call: Yeas: Brewington, Goodin, Moye, Brodie and Pontz - 5 Nays: None Mr. Rubley stated that there were no Domestic Relations Orders received. Mr. Rubley stated that there were no Eligible Domestic Relations Orders certified. It was moved by Trustee Moye, supported by Trustee Goodin to excuse Trustee Benavides and Crawford from.the meeting. Adopted by the following vote: Un ft I usl y. �`' L 44 Employees' Retirement System Regular Meeting of February 18, 1993 Page 2 eral Mr. Rubley informed the Board of the results Of the GeThe resultsnwere Election held February 15 and February 16, certified by Vice Chair James follows: and total ballots Pastlection owereJoseph Jardine. The results were Brinton Butler had 24 votes and Douglas Rubley 35 votes. It was moved by Trustee Brewington, supported by Trustee Moye that the Board certify the 1993 andothatthe General the winnerElection DouglasFRbbleyy 15 and February 16, Finance Department. Adopted by the following vote: Unanimously. Tabled Item(s): The Board reviewed a written Julia Cherry tonion buy-backmserviceccreditss regarding the request of Mr. McWilliams stated that the retirement d buy back prior no provision pursuant to which Julia Cherry could service. The ordinance still contains the a aiguage which itlable to system allowed this during a window opportunyplan members. Ms. Cherry is currently i "covered" de tions fined contribution TheBoardasked for new employees hiredpositions. informing her that the that a communication be sent to Ms. Cherry Board is unable to make a ruling on her request as the retirement ordinance reveals no provision. Mr. McWilliams stated that he was not ready to give a legal opinion on the insurable tthatttheeBoard1on for may want ttheechange.to come McWilliams also stated from Council by ordinance. Item hiss sue is more complicated than it has been in the past. Other Business: ders Trustee Pontz asked that the �ders1c Relations Ce t feed be rexcludedefrom the ived and Eligible Domestic Relations O agenda. Mr. Rubley states that f gto 1 i form doey not Board that the ut on the agenda but it procedure is being followed. Mr. Rubley stated tha thee number include these items in the Secretary report. Only received and certified will be reported. Mr. Rubley stated that he had received a letter from Mr. Marc Puckett, Director of Finance, City of Flint advising him that Russ Galvin is employed by the City of Flint a a Cerified Mrt PPuckette el IV Assessor, in a retirement membership position. ed that it was his understanding that Mr. Galvin needed e monthwithtof service with the City of Flint to perfect his employment City of Lansing in order to consider the City of Lansing as a preceding unit under the Reciprocal Act. The Retirement Office was Mr. Puckett asking that Employees' Retirement System Regular Meeting of February 18, 1993 Page 3 asked to contact Mr. Puckett asking that he notify the Retirement office when Mr. Galvin has finished his one month requirement. Mr. Rubley read a letter from Jack Cushman, Chairperson, Police and Fire Retirement stating that the Police and Fire Retirement Board is interested in establishing guidelines for future use which would assist in the selection of a medical director for the retirement system. They would like to meet with a physician who is experienced in this matter to assist in the establishing of these guidelines. Mr. Cushman asked if any of the General Employees Retirement System Trustees would like to take part in this project to notify the Board Secretary. The entire Board stated that they would be interested in working on this project and asked that a joint board meeting be set up. Trustee Brewington left the meeting at 9:30 a.m. Meeting adjourned due to a lack of a quorum. Mr. Rubley reviewed the performance of the money managers. The Meeting adjourned at 9:30 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System OFFJ L PROCEEDINGS OF THE BOARD OF TRUSTEES Rig CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting 8th Floor Conference Room City Hall Lansing, MI March 18, 1993 Thursday, 8:37 a.m.. The Board met in regular session and was called to order by Chairperson, Rita Pontz at 8:37 a.m. Present: Trustee Brewington, Brodie, Goodin, Moye, Pontz and Rubley - 6 Absent: Trustee Benavides and Crawford - 2 Others: Douglas Rubley, Interim Secretary, Teri Cook and Steven Dougan, Finance Department and Melvin McWilliams, Law Department. It was moved by Trustee Goodin, supported by Trustee Moye that the minutes of February 18, 1993 be approved. Adopted by the following vote: Unanimously. Trustee Rubley abstained. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 3 retired. Total active membership: 678. Refunds made since the last regular meeting: $0.00. Retirement allowances paid for the month of February, 1993 amount to $638,891.25. Total number of retirement checks printed ERS: 608. Total retirement checks printed for all three systems: 1,018. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Moye, supported by Trustee Goodin that the application for regular age and service retirement for Richard H. Murrell, Public Service -O&M Division, 15 years 5 months service credit, age 63, effective April 2, 1993 be approved. Adopted by the following roll call: Yeas: Brewington, Brodie, Goodin, Moye and Pontz - 5 Nays: None Trustee Rubley abstained. It was moved by Trustee Moye, supported by Trustee Goodin that the application for reciprocal retirement for Russell H. Galvin, 4 years service credit, age 62, effective March 1, 1993 be approved. Adopted by the following roll call: Yeas: Brewington, Brodie, Goodin, Moye and Pontz - 5 Nays: None Trustee Rubley abstained. Employees' Retirement System Regular Meeting of March 18, 1993 Page 2 It was moved by Trustee Moye, supported by Trustee Goodin to excuse Trustee Benavides and Crawford from the meeting. Adopted by the following vote: Unanimously. Trustee Rubley abstained. Tabled Item(s) Mr. McWilliams asked the Board that the insurable interest definition for dependents remain tabled. Mr. McWilliams indicated that there was more intensive research needed than originally anticipated. Other Business Mr. Rubley indicated to the Board that he would like to mail the completed Hannah survey's back to Hannah Group within the month. He stated that if they had not completed a survey that he had extra copies. Mr. Rubley stated that the MAPERS Conference is scheduled for May 16-18 at Shanty Creek and that if any Trustee would like to go to let Teri Cook know by Friday, March 19, 1993. Mr. Dougan explained to the Board that an error was made on Renee Murphy's benefit calculations causing an overpayment of $88.62. Mr. Dougan indicated that he had talked with Ms. Murphy and she had asked, due to the minimal amount, that a one time deduction be made. Mr. Rubley stated that he gives Mr. Dougan credit for catching these errors in a timely manner. Mr. stated that the Certification of Annual Earnings Received for Disability retirees form will be sent out. We will also be asking for W2s and any other earnings such as 401K or deferred comp. Mr. Rubley informed the Board that a meeting will be setup regarding guidelines for selecting a medical director. Trustee Kus, Police and Fire Retirement Board volunteered to setup meeting. Mr. Rubley informed the Board that he has contacted the Hannah Group regarding the pricing of the M. D. Sass bonds in default. The Hannah Group will be supplying a written report. The Hannah Group is also drafting a transition policy when a money manager is terminated. The Hannah Group will be coming back in May. Employees' Retirement System Regular Meeting of March 18, 1993 Page 3 Mr. Rubley have an overview of the performance of the money managers. .The meeting adjourned at 9:45 a.m. Douglas L. Rubley, In rim Secretary Employees' Retirement System 77 V OFFICIAL PROCEEDINGS OF THE ,BOARD ..OF TRUST'.E.ZS- CITY OF LANSING EMPLOYEES RETIREMEN%3333� Tgk 'l 55 Regular Meeting 8th Floor Conference Room City Hall April 22, 1993 Thursday, 8:40 a.m. The Board met in regular session and was called to order by Chairperson, Rita Pontz, at 8:40 a.m. Trustee Crawford arrived at 8:45 a.m. and asked to be excused from the meeting. Present: Trustee Brewington, Brodie, Goodin, Moye, Pontz and Rubley. Absent: Trustee Benavides and Crawford. Others: Douglas Rubley, Interim Secretary, Teri Cook and Steven Dougan, Finance Department and Melvin McWilliams, Law Department. It was moved by Trustee Moye, supported by Trustee Goodin that the minutes of the regular meeting of March 18, 1993 be approved as submitted. Adopted by the following vote: Unanimously. Trustee Rubley abstained. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 2 retired. Total active membership: 676. Refunds made since the last regular meeting: $0.00. Retirement allowances paid for the month of March, 1993 amounted to $637,803.94. Total number of retirement checks printed ERS: 608. Total retirement checks printed for all three systems: 1,018. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. The Board reviewed a letter from the attorney for Karen Green in which he was asking that the Board grant service credits for the time Ms. Green served in the Police Cadet Program. It was moved by Trustee Moye, supported by Trustee Brodie that a letter be sent to Ms. Green's attorney stating that the retirement ordinance does not give the Employees Retirement System Board of Trustee the option to grant service credits toward retirement for any non -covered positions. Adopted by the following vote: Unanimously. Trustee Rubley abstained. Mr. Rubley wanted the Board to be aware that the former Parks Division officers have contacted legal counsel regarding their transfer of service credits to the Police and Fire Retirement System. No action was required. EMPLOYEES RETIREMENT SYSTEM April 22, 1993 Page 2 It was moved by Trustee Goodin, supported by Trustee Moye to excuse Trustee Benavides and Trustee Crawford. Adopted by the following vote: Unanimously. Trustee Rubley abstained. Tabled Item(s) Mr. McWilliams asked that the insurable interest definition for dependents remain tabled. Law Department is still researching this item. Other Business Mr. Rubley informed the Board that Mr. Dougan is performing an audit of the retirement rosters to match health care coverages, Medicare reimbursements, etc., as well as reviewing information on the actuary's data base. Mr. Rubley stated that Mr. Dougan has done an excellent job. Mr. Rubley also stated that other audits will be performed on the retirement system bookkeeping. The Board recognized the work done by Steve Dougan and Teri Cook during the transition, after the early retirement. Mr. Rubley briefly highlighted a letter from The Hannah Group responding to some issues that they felt needed further discussion and what they were planning to concentrate on at the May meeting. Mr. Rubley informed the Board that, due to the MAPERS Conference being held on the Police and Fire Retirement System Board meeting, the Police and Fire Retirement Board agreed to move their Board meeting from May 18, 1993 to May 20, 1993. The Police and Fire Retirement Board asked if the Employees Retirement Board would be willing to move their Board meeting to 8:00 on May 20th they would hold their meeting following the Employees Retirement Board meeting before the Joint Board meeting. It was moved by Trustee Moye, supported by Trustee Goodin that the meeting of May 20, 1993 be moved to 8:00 a.m. Adopted by the following vote: Unanimously. Trustee Rubley abstained. Mr. Rubley informed the Board that the Certification of Annual Earnings received by disability retirees form has been revised and will be sent out. A copy will be provided for the Board members. Mr. Rubley informed the Board that a Certification of Delegates form was received in the packet of MAPERS material. Mr. Rubley asked the Board who they would like to send as delegates and alternates. The Board agreed that the delegates and alternates would be as follows: EMPLOYEES RETIREMENT SYSTEM April 22, 1993 Page 3 Delegates Karen Brewington John Brodie Alternates Robert Moye Rita Pontz Mr. Rubley informed the Board that Jack Sweet has filed a lawsuit regarding reimbursement for past medicare reimbursements. Trustee Pontz informed the Board that the Governor is intending to introduce a bill that would create a defined contribution plan for all current plans in Michigan. The defined contribution plan would be administered by an outside firm. Trustee Pontz stated that a target date of January 1, 1994 was set but she felt that it would take a while for this bill to go through legislation. Mr. Rubley informed the Board that the Committee on Ways and Mean is looking into setting ordinance criteria governing retirees coming back as new employees and earning additional service credits. Mr. Rubley asked the Committee that since the Employees Retirement Board is an action Board that they review the ordinance. The Committee on Ways and Means stated that they would ask for suggestions from the retirement Board. Mr. Rubley gave an overview of the performance of the money managers. The meeting adjourned at 10:40 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting May 20, 1993 8th Floor Conference Room Thursday, 8:43 a.m. City Hall The Board met in regular session and was called to order by Chairperson, Rita Pontz, at 8:43 a.m. Present: Trustee Brewington, Brodie, Goodin, Moye, Pontz and Rubley - 6. Absent: Trustee Benavides and Crawford - 2. Others: Douglas Rubley, Interim Secretary, Teri Cook and Steven Dougan, Finance Department. It was moved by Trustee Goodin, supported by Trustee Brodie that the minutes of the regular meeting of April 22, 1993 be approved with one correction. Adopted by the following vote: Unanimously. Trustee Rubley abstained. Trustee Moye arrived at 8:45 a.m. The Secretary reported 0 new members, 0 reinstatements, 0 refunds, 0 transfers and 2 retired. Total active membership: 674. Refunds made since the last regular meeting: $0.00. Retirement allowances paid for the month of April, 1993 amounted to $637,515.40. Total number of retirement checks printed ERS: 610. Total retirement checks printed for all three systems: 1,020. Domestic Relations Orders Received: 1. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Moye, supported by Trustee Goodin that the application for Regular Age and Service Retirement for Charles H. Smiley, 911 Center - Police Department, 14 years 6 months service credit, age 51, effective May 3, 1993 be approved. Adopted by the following roll call vote: Yeas: Brewington, Brodie, Goodin, Moye, Pontz - 5. Trustee Rubley abstained. It was moved by Trustee Trustee Moye, supported by Trustee Goodin to receive the request for Deferred Retirement for Pamela Ruppert, 911 Center - Police Department, 16 years 10 months service credit, age 35, effective May 28, 1993. rr r Adopted by the following vo-qeT. Employees' Retirement Board May 20, 1993 Page 2 It was moved by Trustee Goodin, supported by Trustee Moye that the request for Refund of Accumulated Contributions for Cynthia Alleva be approved. Adopted by the following vote: Unanimously. It was moved by Trustee Goodin, supported by Trustee Moye to excuse Trustees Benavides and Crawford from the meeting. Adopted by the following vote: Unanimously. Tabled Item(s) Mr. McWilliams was not present to discuss the Insurable Interest definition for dependents. Other Business A letter was reviewed from Lazard Freres Asset Management in which they stated that they had terminated Peter McCarthy, Portfolio Manager. They stated that they have a team approach and that the City hired a firm not an individual. Mr. Rubley informed the Board that he had received a letter from Kenneth Birch, Attorney for Karen Green. Mr. Rubley stated that a letter had been sent to Mr. Birch informing him that the Board is not authorized to grant service credits toward retirement for any non -covered position. It was moved by Trustee Brewington, supported by Trustee Goodin that the letter from Mr. Birch be forwarded to the Law Department. Adopted by the following vote: Unanimously. Mr. Rubley stated that he had received a sample letter addressed to Senator Riegel from the Government Finance Officers Association stating that state and local government retirement plans are interested and concerned about two provisions that if not modified jeopardize their federal tax -qualified status. The first is under IRC 401(a) (17) and the second is a current law requirement under IRC section 415. Mr. Rubley recommended that the Board send this letter to Senator Riegel. The Board agreed to send this letter to Senator Riegel. Trustee Moye informed the Board that his term of office expires June 30, 1993. Employees' Retirement Board May 20, 1993 Page 3 Mr. Rubley gave an overview of the performance of the money managers. The meeting adjourned at 9:20 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS 8th Floor, Conference Room May 25, 1993 City Hall Tuesday, 9:45 a.m. Lansing, MI The Joint Board of Trustees was called to order at 9:45 a.m. Present: Board Members: Trustees Barkyoumb, Benavides, Brodie, Cushman, Goodin, Kus, Lankheet, Luzynski, Moye, Pontz and Rubley - 11. Absent: Trustees Brewington and Crawford - 2. Others Present: Douglas Rubley, Interim Secretary, Steve Dougan and Teri Cook, Finance Department; Claire Sonnenberg, J.A. Hannah Investment Advisory Service. Claire Sonnenberg, J.A. Hannah Investment Advisory Service, passed out the Performance Evaluation of the money managers for the Police and Fire and General Employees' Retirement Systems for the period ending March 31, 1993. Ms. Sonnenberg reviewed each manager's performance for both retirement systems. Trustee Benavides left the meeting at 10:12 a.m. The Board asked Ms. Sonnenberg what The Hannah Group's opinion was on Lazard Freres Asset Management's performance. Ms. Sonnenberg stated that Lazard Freres is moving toward a true value manager. They are moving toward utility stocks which is a value stock. They did sell a lot of growth stocks last day of the quarter. Ms. Sonnenberg stated that she feels that Lazard Freres is trying to be a value manager. Mr. Rubley asked Ms. Sonnenberg if she knew the credentials and history of the new portfolio manager that replaced Peter McCarthy at Lazard Freres. Ms. Sonnenberg stated that she would bring this information back in June. Mr. Rubley suggested that the Board should decide, within the next three months, whether or not to continue with Lazard for the reasons stated or to terminate them as a value manager. Ms. Sonnenberg stated they she could start a value manager search so that when they come back in June the Board would have a list of value managers available if they need it. Trustee Pontz arrived at 10:45 a.m. Joint Board Meeting Board of Trustees City of Lansing Retirement Systems Page 2 Ms. Sonnenberg encouraged the Boards to look into international equity. The Hannah Group would like to see the City diversify from domestic equity. Trustee Moye asked if Ms. Sonnenberg could send a copy of their RFP used for hiring a value manager. Ms Sonnenberg stated that she could provide a copy for the Board. Ms. Sonnenberg passed out a draft copy of the Transition Policy for the Boards review. The Board indicated they would like the following included: 1. Methodology for hiring or terminating a manager. '2. Investment guidelines including such items as how to price. 3. Incorporate transition items from NBD. It was the agreement of both Boards that both Lazard Freres and J.A. Hannah would come in June so that J.A. Hannah could talk with the representatives from Lazard Freres. The meeting adjourned at 11:54 a.m. Douglas L. Rubley, terim Secretary Retirement Boards -Joint Board Meeting JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS June 15, 1993 8th Floor, Conference Room Tuesday, 9:45 a.m. City Hall Lansing, MI The Joint Board of Trustees was called to order at 9:45 a.m. Present: Board Members: Crawford, Cushman, Goodin, Kus, Trustees Barkyoumb, Lankheet, Luzynski, Moye, Pontz and Rubley - 10. Absent: Trustees Benavides, Brewington and Brodie - 3. Others Present: Douglas Rubley, Interim Secretary, Steve Dougan and Teri Cook, Finance Department; Tom Franzese Han d all Matlow, tment Lazard Freres; John Hannah, Advisory Service. Mr. Franzese gave a brief overview of their presentation in December. Both Mr. Franzese and It' wMatlow stat d that the er their performance as of March portfolio is in medium to smaller size companies as compared to the S&P. Trustee Crawford arrived at 10:00 a.m. Mr. Rubley asked Mr. Franzese to review how they feel they are doing since 1987 to presn• . Franzese stated fairly well the lasttteneyearse done in comparison to theirPeers Mr. Matlow stated what value i They ao esasazard Freres looks at according to their importance. 1. Free cash flow• or assets. 2. Return on equity 3. Price to book. Both Mr. Franzese and Mr. Matlow feel they are well positioned. Trustee Crawford left at 10:30 a.m. Mr. Franzese and Mr. Matlow left the meet9nlgo� i�iu0:/35-a.m. 7 �[' ��, 1 �N4� ���'i•V Joint Board Meeting June 15, 1993 Page 2 Mr. Hannah gave his presentation at 10:43 a.m. He handed out an analysis of Lazard's performance and went over the results. Mr. Hannah brought up three points regarding Lazard Freres performance. 1) Performance is lack luster; 2) Any stocks they have talked about have under performed; 3) No risk adjustment returned. Mr. Hannah's recommendation is they are not performing as a value manager. Mr. Rubley stated that the Boards should be thinking about whether to search for another manager before terminating Lazard, to terminate and pull stocks and securities and place with index manager or to keep Lazard Freres. It was the decision of the members present that Mr. Hannah proceed to locate a group of value managers. Mr. Rubley suggested that no matter what decision the Board take that they should wait until after the actuarial report, which is due in August. Mr. Hannah suggested on further developing the transition policy and wait until actuarial report. He will come back in August with analyze and a group of value managers, if the boards need to search for new manager. The meeting adjourned at 12:10 p.m. Douglas L. Rubley, nterim Secretary Retirement Boards -Joint Board Meeting OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting June 17, 1993 8th Floor Conference Room Thursday, 8:45 a.m. City Hall The Board met in regular session and was called to order by Chairperson, Rita Pontz, at 8:45 a.m. Present: Trustee Benavides, Crawford, Goodin, Moye, Pontz and Rubley - 6. Absent: Trustee Brewington and Brodie - 2. Others: Douglas Rubley, Interim Secretary, Teri Cook and Steven Dougan, Finance Department. It was moved by Trustee Goodin, supported by Trustee Moye that the minutes of the regular meeting of May 20, 1993 and the joint board meeting of May 25, 1993 be approved. Adopted by the following vote: Unanimously. Trustee Rubley abstained. The Secretary reported 1 new members (Jeffery Mills, UAW Parks and Rec.), 0 reinstatements, 1 refunds, 6 transfers (911 employees) and 1 retired. Total active membership: 667. Refunds made since the last regular meeting: $4,054.20. Retirement allowances paid for the month of May, 1993 amounted to $635,471.14. Total number of retirement checks printed ERS: 609. Total retirement checks printed for all three systems: 1,025. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Moye, supported by Trustee Goodin that the application for Regular Age and Service Retirement for: Geraldine Chapela, Probation Department, 17 years 3 months service credits, age 62, effective June 26, 1993. Richard Warner, Public Service Department, 18' years 6 months service credit, age 61, effective June 12, 1993. Adopted by the following roll call vote: Yeas: Crawford, Goodin, Moye, Pontz and Rubley - 5. Nays: None It was moved by Trustee Moye, supported by Trustee Goodin that the transfer from Duty Disability to Regular Age and Service Retirement for Robert Goodsell be approved. Adopted by the following vote: Unanimousa�.�'; ��` Employees' Retirement System June 17, 1993 Page 2 It was moved by Trustee Crawford, supported by Trustee Moye to excuse Trustees Brewington and Brodie. Adopted by the following vote: Unanimously. Tabled Item(s Mr. Rubley stated that Mr. McWilliams was still working on the Insurable Interest definition for dependents. Other Business Mr. Rubley stated that he had asked the Law Department for a legal opinion on the release of name and addresses of retirees. In a memorandum, Mr. McWilliams stated that Michigan's Freedom of Information Act does -not authorized the non -disclosure of names and addresses of retirees by the City's retirement office. Since the information is not exempt, it cam be released. Mr. Rubley indicated that he would forward this opinion on to the Police and Fire Retirement Board. Trustee Benavides arrived at the meeting at 8:55 a.m. Mr. Rubley stated that he has asked the Law Department for a legal opinion on the question if a retiree chooses not to have health benefits when retired can they come back and join at a later time. It was the opinion of Mr. McWilliams that the retiree could join at a later time. Mr. Rubley informed the Board that an audit is being done for health care coverage regarding dependents who have reached the age of 18. Mr. Rubley stated that he had received a letter form NBD in which they indicated that they would be increasing their fees. Their last fee increase was in 1990. Mr. Rubley indicated that he would have this analyzed before the next meeting. Mr. Rubley informed the Board that he has received a list of questions regarding the rehiring of City Retirees, from the Committee on Ways and Means, that once answered will provide the basis for amending the ordinance. Mr. Rubley indicated that he would get a copy to each trustee. Trustee Crawford left the meeting at 9:22 a.m. Trustee Pontz indicated that the State Attorney General have an opinion regarding retirees returning back to work. She also indicated that the I.R.S. has test for contract employees. She stated that she would forward a copy of both to Mr. Rubley. Employees' Retirement System June 17, 1993 Page 3 Mr. Rubley informed the Board that due to the term expiring for Robert Moye the deadline for receipt of nominating petitions will be 4:00 p.m. on Monday, June 21, 1993. Nominating petitions must contain not less than 25 nor more than 50 member signatures. A Primary Election to determine candidates for the General Election will be held over the two day period of Tuesday, June 29, 1993 and Wednesday, June 30, 1993. The General Election, if necessary, to select the trustee member will be held over the two day period of Tuesday, July 13, 1993 and Wednesday, July 14, 1993. Mr. Rubley presented for the Board's approval the following names as election inspectors for the upcoming Trustee Election. They are Jan Budden and Jan Maier, Assessor's Office. It was moved by Trustee Benavides, supported by Trustee Goodin that the Board approve the above listed individuals as election inspectors for the Trustee Election. Adopted by the following vote: Unanimously. Mr. Rubley gave an overview of the performance of the money managers. The meeting adjourned at 9:56 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System V•;:-. OFFICIAL PROCEEDINGS'--OF-THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting July 22, 1993 8th Floor Conference Room Thursday, 8:40 a.m. City Hall The Board met in regular session and was called to order by Vice Chairperson, James Goodin, at 8:40 a.m. Present: Trustee Brewington, Crawford, Goodin, Kruger, and Rubley - 5. Absent: Trustee Benavides, Brodie and Pontz - 3. Others: Douglas Rubley, Interim Secretary, Teri Cook and Steven Dougan, Finance Department. It was moved by Trustee Crawford, supported by Trustee Brewington that the minutes of the regular meeting of June 17, 1993 and the joint board meeting of June 15, 1993 be approved. Adopted by the following vote: Unanimously. The Secretary reported 3 new members (Christine Barnes, Kevin Lytle, Aaron Winchell, UAW Parks and Rec.), 0 reinstatements, 1 refund, 0 transfers and 2 retired. Total active membership: 667. Refunds made since the last regular meeting: $3,595.82. Retirement allowances paid for the month of June, 1993 amounted to $634,396.11. Total number of retirement checks printed ERS: 608. Total retirement checks printed for all three systems: 1,023. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Crawford, supported by Trustee Brewington that the application for Regular Age and Service Retirement for Bert R. Queen, Public Service, 21 years 2 months service credits, age 46, effective July 7, 1993 be approved. Adopted by the following roll call: Yeas: Brewington, Crawford, Goodin, Kruger, Rubley - 5. Nays: None. It was moved by Trustee Crawford, supported by Trustee Brewington that the Deferred Retirement to Regular Age and Service Retirement for Raymond C. Guernsey, Parks and Recreation, 12 years 1 month service credits, age 61. Trustee Rubley informed the Board that Raymond Guernsey deferred his retirement some years ago. He qualified, as of last year, for Regular Age and Service Retirement. He wants his retirement to be retro back to last year. Trustee Rubley stated that according to the ordinance it is the EMPLOYEES' RETIREMENT SYSTEM July 22, 1993 Page 2 responsibility of the individual to make an napplication for date of application retirement and the effective date is Guernsey's sooner than one month from the date of application. Raymond,s date of retirement is July 1, was June 1, 1993. Raymond Guernsey 1993, The Board requested Board's action. a letter be sent to Raymon Guernsey informing him of the _ 5. ll vote: Adopted by the following roll caG CrawfordGoodin, Kruger, and Rubley Yeas: Brewington, , Nays: None Trustee Crawford, supported by Trustee Brewington It was moved by Brodie and Pontz. to excuse Trustees Beiavivote: Unanimously. Adopted by the to the Employees' Retirement Douglas Rubley, Interim Secretary system certified that two nominating petition were received by the Y nn, on Monday, June 21, 1993. One for Retirement office by 4:00 p• petition was found Ronald Kruger and Robert Moye. Robert Moye's p one ot having 25 valid signatures. invalid due to nDue to o only an valid petition being received, it will not be necessary be deemed ice ele ction and that Ronald Kruger spa hall system Public m and will ervesonvthe Trustee to the Employees thrur June 30, 1997. It was moved by Board from July 1, orted by Trustee Brewington that the Board Trustee Crawford, supp petitions as reported by Mr. approve the certification of the Rubley. vote: Unanimously. Adopted by the following Tabled Item(s): Mr . Rubley stated that he had not receivea opinion on the insurable interest definition for P Other Business: Mr. Rubley informed the money the Board k at f he d Detroit (NBD) contacted The money managers regarding National Bank managers indicated that they had no problems with NBD and are happy It was moved by Trustee Crawford, with their performance. that the Board accept the increase supported by Trustee Brewington in fees fro�NeBDollowing vote: Unanimously - Adopted byh Trustee Crawford left the meeting at 8:53 a.m. in Rubley informed the Board that an error wasduetoher, he is Mr.5, 1993. retirement final ofor$Janet aper month retroactive to January $65.62 per Year, EMPLOYEES' RETIREMENT SYSTEM July 22, 1993 Page 3 Since Mrs. Lazar prepared all of her preliminary work herself, and had her retirement estimates prepared directly by Gabriel, Roeder, Smith and Company, there was no estimate prepared by the Retirement Office which might have picked up this difference. Mr. Rubley informed the Board that the Fall MAPERS Conference is being held September 19 through September 21, 1993 at the Amway Grand hotel in Grand Rapids. An agenda was handed out to those members present. Those planning on attending were asked to notify Teri Cook by July 24, 1993. Mr. Rubley stated that he had received a copy of the State Attorney General's legal opinion regarding rehiring of retirees. Mr. Rubley briefly reviewed the material with the Board. An income threshold was discussed. It was agreed by those present that if a retiree is rehired they would return as -an independent contract with an income threshold of $3,000 was suggested. Mr. Rubley stated that he would forward these comments to Ways and Means Committee. Mr. Rubley informed that Board that the Retirement Office had received a request from Linda Fulkerson for a non -duty disability retirement. Trustee Brewington stated that the Personnel Department is waiting for a letter from her physician indicating the reason she cannot perform her job. Once the letter is received, she will be sent to the Center for Occupational Health Services. Mr. Rubley indicated he would like to bring in M D Sass in August, for a joint board meeting, to discuss the Executive Life bonds. Mr. Rubley gave an overview of the performance of the money managers. The meeting adjourned at 9:30 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System l JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS4 03 8th Floor, Conference Room August 17, 1993 City Hall Tuesday, 9:30 a.m. Lansing, MI The Joint Board of Trustees was called to order at 9:30 a.m. Present: Board Members: Trustees Barkyoumb, Benavides, Brewington, Brodie, Cushman, Goodin, Kruger,'Kus, Lankheet, Luzynski, Pontz and Rubley - 11. Absent: Trustees Crawford and Pontz - 2. Others Present: Douglas Rubley, Interim Secretary, Steve Dougan and Teri Cook, Finance Department; Hugh Lamle, M D Sass. Mr. Lamle, M D Sass, passed out their fund performance report as of 8/11/93. Mr. Lamle gave an overview of the report. Mr. Lamle gave a brief history on executive life bonds. Mr. Lamle speculated that the price of the bonds would reach the mid 80' s within the next six months. Mr. Lamle stated the M D Sass is trying to negotiate a better deal on what the retirement systems hold. They have been successful on negotiations to date. Mr. Rubley asked if there is a current market for the bonds. Mr. Lamle indicated that there is. Currently, the bonds could be sold for 79 to 81-82 cents on the dollar on the market. Mr. Rubley asked if we would get interest plus legal fees. Mr. Lamle indicated that the retirement systems would get (1) new bonds backed by a 5 year guarantee -(72 to 74 cents on the dollar); (2) reimbursement of legal fees for all bond holders; (3) premium of 1 1/2 to 3 cents on the bonds. Trustee Cushman asked if the bottom could still drop out on these bonds. Mr. Lamle indicated that, after going through the courts, legally nothing can be reversed to effect the bonds. The bulk of the gain has been received. The meeting adjourned at 10:31 a.m. . Ruble Inte Secretary Douglas L y. Retirement Boards -Joint Board Meeting . � ', . � i , •� ill l OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING J z. EMPLOYEES RETIREMENT SYST,E?!S, ►'isl Lj 01 Regular Meeting August 19, 1993 8th Floor Conference Room Thursday, 8:39 a.m. City Hall The Board met in regular session and was called to order by Chairperson, Rita Pontz, at 8:39 a.m. Present: Trustee Benavides, Brewington, Brodie, Crawford, Goodin, Kruger, Pontz and Rubley - 8. Absent: None Others: Douglas Rubley, Interim Secretary, Teri Cook, Steven Dougan, Finance Department and Melvin McWilliams, Law Department. It was moved by Trustee Brewington, supported by Trustee Goodin that the minutes of the regular meeting of July 22, 1993 be approved. Adopted by the following vote: Unanimously. Trustee Benavides arrived at the meeting at 8:45 a.m. The Secretary reported 0 new members, 0 reinstatements, 0 refund, 0 transfers and 3 retired. Total active membership: 664. Refunds made since the last regular meeting: 0. Retirement allowances paid for the month of July, 1993 amounted to $636,936.19. Total number of retirement checks printed ERS: 609. Total retirement checks printed for all three systems: 1,026. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Benavides, supported by Trustee Brodie that the application for Regular Age and Service Retirement for Joseph Swanson, Parks and Recreation, 28 years 1 month service credits, age 63, effective July 24, 1993. Adopted by the following roll call: Yeas: Benavides, Brewington, Brodie, Crawford, Goodin, Kruger, Pontz and Rubley - 8. Nays: None. It was moved by Trustee Crawford, supported by Trustee Benavides that the Deferred Retirement to Regular Age and Service Retirement for Michele Marie Restainer, Building Safety Division, 13 years, 2 months service credits to date, age 38. Adopted by the following roll call: Yeas: Benavides, Brewington, Brodie, Crawford, Goodin, Kruger, Pontz and Rubley - 8. Nays: None. EMPLOYEES' RETIREMENT SYSTEM August 19, 1993 Page 2 Tabled Item(s): Mr. McWilliams informed the Board of the status regarding insurable interest definition for dependents. He stated that he will be recommending adopting a list of relationships that the Board would deem for an insurable interest. Also, if the Board wants a spousal sign -off form. Mr. McWilliams also informed the Board that he had received a court order regarding the divorce decree for Ronald E. Cole in which Mr. Cole had taken his present wife off as beneficiary and added his girlfriend before the divorce was final. The court order is to re-establish his ex-wife. Other Business: Mr. Rubley informed the Board that Linda Fulkerson had withdrawn her request for a non -duty disability retirement. Trustee Crawford informed the Board that he had submitted an ordinance at the Council meeting on August 16, 1993 which would separate elected -officials from all other bargaining units. The purposed ordinance is for the purpose of providing that City Council shall only increase, decrease, alter or otherwise modify fringe benefits, including retirement benefits, life insurance and/or health insurance for all City elected officials by ordinance. The purposed ordinance was referred to Ways and Means committee. Trustee Benavides stated that the Ways and Means committee wanted the Law department to look at it on conflict of interest. Compensation Commission members are appointed by the Mayor which could cause a problem. Trustee Pontz asked if this Board will be involved. Trustee Crawford indicated that it would be referred for financial impact. Trustee Pontz stated that the whole Board should have a copy of the ordinance. Trustee Crawford provided the members with copies. Trustee Pontz stated that there is a problem with regard to items that effect retirement that goes before the bargaining units before they come to the Board, due to union representatives on the Board. Trustee Crawford stated that this should be explored. Mr. Rubley stated that as Board members that the Board should make a recommendation when contracts are approved regarding the funding and amortization period of unfunded liabilities. Mr. Rubley informed the Board that he had forward the comments that were discussed at the Board meeting of July 22, 1993 regarding rehiring of retirees. Mr. Rubley indicated that he would see that the Board members get a copy of the comments. EMPLOYEES' RETIREMENT SYSTEM August 19, 1993 Page 3 Mr. Rubley informed the Board that the projection for Geraldine Chapela, District Court, was made on 2.5 % factor but in fact should have been 2.0%. Ms. Chapela retired in July. This change would be a reduction of $164 in her compensation. Mr. Rubley stated that as Ms. Chapela had not been notified yet. The Board asked to have this review by the Law Department. Trustee Crawford left the meeting at 9:30 a.m. Mr. McWilliams informed the Board that the matter regarding Jack Sweet's medicare reimbursement is coming to a head. Mr. Sweet has stated that he was never informed that the City reimburses medicare and that he wants it retro back 13 years. Mr. Rubley re -stated that Steve Dougan has done a medicare reimbursement audit. Mr. McWilliams stated that in talking with Jim Dowsett that alot of the retirees, at the time, thought if they signed up for medicare reimbursement that they would receive less health coverage. Trustee Brewington stated that she feels Steve Dougan has done an excellent job. Trustee Benavides suggested that letter from the Board be sent to Steve Dougan indicating the great job he is doing. Adopted by the following vote: Unanimously. Trustee Brodie asked when the City would receive the actuary reports. Mr. Rubley stated that the actuary is waiting for financial data information from the Accounting Division. The Accounting Division is in the process of pulling the information together. It should be September or at the latest October. Mr. Rubley gave an overview of the money managers. Mr. Rubley stated that the City has had a number of good years of returns but that as the cycle goes that we may see a slacking off of the high returns. Trustee Brewington left the meeting at 9:55 a.m. The meeting adjourned at 10:00 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF.TRUSTIES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM. Regular. Meeting 8th Floor Conference Room City Hall September 23, 1993 Thursday, 8:40 a.m. The Board met in regular session and was called to order by Chairperson, Rita Pontz, at 8:40 a.m. Present: Trustee Benavides, Brodie, Goodin, Kruger, Pontz and Rubley - 6. Absent: Trustee Brewington and Crawford - 2. Others: Douglas Rubley, Interim Secretary, Teri Cook, Steven Dougan, Finance Department and Melvin McWilliams, Law Department. It was moved by Trustee Goodin, supported by Trustee. Brodie that the minutes of the regular meeting of August 19, 1993 and the joint board meeting of August 17, 1993 be approved. Adopted by the following vote: Unanimously. The Secretary reported 3 new members (Public Service - Dwight Bryant; Parks and Recreation - Michael Hayes and Chris Southwell), 0 reinstatements, 0 refund, 0 transfers and 1 retired. Total active membership: 666. Refunds made since the last regular meeting: 0. Retirement allowances paid for the month of August, 1993 amounted to $635,638.40. Total number of retirement checks printed ERS: 607. Total retirement checks printed for all three systems: 1,024. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Brodie, supported by Trustee Goodin that the application for Regular Age and Service Retirement for Richard Thompson, Parks and Recreation, 27 years 9 months service credits, age 55, effective October 9, 1993. Adopted by the following roll call: Yeas: Benavides, Brodie, Goodin, Kruger, Pontz and Rubley - 6. Nays: None. It was moved by Trustee Goodin, supported by Trustee Brodie that Trustee Brewington and Crawford be excused from the meeting. Adopted by the following vote: Unanimously. Tabled Item(s): Trustee Rubley passed out a memorandum from Melvin McWilliams regarding Insurable Interest Definition. This item was tabled until the October Board meeting to give board members the opportunity to review the memorandum. Employee's Retirement System September 23, 1993 Page 2 Other Business Trustee Rubley passed out a letter from Alan Sonnanstine, Gabriel, Roeder, Smith & Company, regarding Eligible Domestic Relations Orders (EDRO) Actuarial Assumptions. These were the rates as presented by Alan Sonnanstine when the original EDRO procedure was adopted. Trustee Rubley recommended that the Board reaffirm the Actuarial Assumptions regarding EDROs and have them eu tree in the minutes for future reference. It was moved by T supported by Trustee Benavides to reaffirm the attached resolution regarding Adoption of Actuarial Tables for Eligible Domestic Relations Order Computations be approved. (See attached resolution) Adopted by the following vote: Unanimously. Trustee Rubley passed out a letter from Alan Sonnanstine, Gabriel, Roeder, Smith & Company, regarding the Actuarial Valuation Assets. The letter recommends that the Board consider changing the asset valuation method. Trustee Rubley gave an overview of the letter. Trustee Rubley stated that this new method interest, dividends, realized or unrealized appreciation/depreciation are supported Trustee treated uniformly. It was moved by Trustee Goodin, Benavides that the following resolution be approved. Whereas, the actuary has recommended that the method of determining valuation assets be modified to treat all forms of investment income uniformly. Therefore, Be It Resolved, that effective for the 1992 calendar year, the method of determining retirement system asset values for purposes of the annual actuarial valuation report be changed to the method outlined in the actuary's letter of September 8, 1993. Adopted by the following vote: Unanimously. Trustee Rubley abstained. Trustee Rubley informed the Board that he had contacted Gerry Chapela and explained to her that her retirement calculation was incorrectly figured. Trustee Rubley did inform her that her former position was being held open for her. Ms. Chapela stated verbally that she did not plan to come back to work that she still wanted to retire. Ms Chapela received two checks at the higher amount. Ms. Chapela asked if the Board would ask for the excess amount back. Trustee Rubley stated to her that he would present y iteeoGo e Boardt it was moved by Trustee Benavides, supported the Board give Ms. Chapela the option of paying back the excess in full or spread over her lifetime. Adopted by the following vote: Unanimously. mployees' Retirement System eptember 23, 1993 age 3 'rustee Pontz asked if 'the Board Fringe and ke a Retirement recommendation .-egarding the Elected Of )rdinance presented by Mayor Crawford. Trustee Benavides stated :hat the Council does want the Boards reco mmendation. adetfor.retirement Rubley indicated that he feel that it is appropriate pppp it was -hanges for elected officials to tydTrbstee ordinance. that all noved by Trustee Rubley, retirement changes be made by ordinance. Adopted by the following roll call vote: Yeas: Benavides, Goodin, Kruger, Pontz, Rubley - 5- Nays: Brodie - 1 It Trustee Brodie stated that he wanted to di Trustee Rubley that•this was moved by Trustee Brodie, supported by motion be tabled for further review. Adopted by the following vote: Unanimously. he Trustee Rubley informed the Bdthatof retirees to WaystandBMeanss suggestions regarding the rehiring work with The Ways and Means Comm 1incorporate ttee asked t hat Trustee Rubley thesesuggestions into the the City Attorney ordinance. he Mr. McWilliams gave a brief overview of thatcherwouldesendgarcoPY Cole vs Cole. Mr. McWilliams of the court order to the Board members. Trustee Rubley informed the Board illbePresent at Alan the Gabriel, the October board Roeder, Smith & Company, w meeting to discuss the actuarial report. Trustee Rubley informed the BoardRoeder, that Smith had sentcompany letter tonAlan Sonnanstine, Gabriel, Roe , supplemental report on the prefunding of health care. Trustee Pontz left the meeting at 10:09 a.m. passed chair over to Vice Chair Goodin. Trustee Rubley gave an overview of the performance of the money managers. The meeting adjourned at 10:11 a.m. 4 Douglas L. Rubley Interim Secretary Employees' Retirement System Reaffirmed Resolution Adoption of Actuarial Tables For Eligible Domestic Relations Order Computations On June 27, 1991, the Governor signed Enrolled House Bill 4884, 'enacting into law the Eligible Domestic Relations Order Act", Act 46 P.A. 1991. This Act authorizes Eligible Domestic Relations Orders (EDRO's), which provide a means of dividing future retirement benefits as a marital asset, as well as providing a means of paying those benefits. While the emphasis of the Act is on divorce situations, the Act also covers child support and separate maintenance. The amount payable to a retirement system participant's ex -spouse, the "alternate payee", is determined by the EDRO as issued by the court. However, sections 4 and 5 of the EDRO Act specify that payments made to the alternate payee in the form of a single life annuity must be the actuarial equivalent -of the alternate payee's share of the participant's.benefits. Further, under section 5, if the alternate payee chooses to receive benefits while the participant is still working, an actuarial equivalent calculation is required. Act 46 does not specify the actuarial assumptions which are to be used to calculate these actuarial equivalents. It is the recommendation of the plan administrator as well as of the plan's actuary that standard tables of assumptions, which are widely used and accepted for this purpose in the private sector, be adopted by the following resolution: For purposes of Eligible Domestic Relations Order computations pursuant to Act 46 of the Public Acts of 1991, the retirement system shall use the interest rates and underlying unisex mortality table specified by the Pension Benefit Guaranty Corporation (PBGC) for calculating the actuarial present value of immediate and deferred pensions under a terminated pension plan as provided in part 2619 of subchapter C of chapter XXVI of title 29 of the Code of Federal Regulations, 29 C.F.R. part 2619. Interest rates used for Eligible Domestic Relations Order calculations shall be the rates specified by the PBGC for the second month preceding the date of commence- ment of the alternate payee's benefit. Use of standard, federally -promulgated tables will simplify he legal processbly of ate, developing EDRO"s for different plans aroundthe ce the likelihood of the reasonableness of assumptions being argued in .court. Using the rates specified for the second month preceding the commencement of benefits will make it easier to provide final calculations prior to the date of benefit commencement. 10/91 11-12-93A10:19, RC,iD OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting October 21, 1993 8th Floor Conference Room Thursday, 8:35 a.m. City Hall The Board met in regular session and was called to order by Chairperson, Rita Pontz, at 8:35 a.m. Present: Trustee Benavides, Brewington, Brodie, Crawford, Goodin, Kruger, Pontz and Rubley - 8. Others: Douglas Rubley, Interim Secretary, Teri Cook, Steven Dougan, Finance Department and Melvin McWilliams, Law Department, John McComb, Budget Division, Greg Koessel, Internal Auditor and Alan Sonnanstine, Gabriel, Roeder, Smith & Company. It was moved by Trustee Goodin, supported by Trustee Rubley that the minutes of the regular meeting of September 23, 1993 be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member(s) (Public Service - Gregory Dean), 0 reinstatements, 0 refund, 0 transfers and 1 retired. Total active membership: 667. Refunds made since the last regular meeting: 0. Retirement allowances paid for the month of September, 1993 amounted to $637,326.25. Total number of retirement checks printed ERS: 606. Total retirement checks printed for all three systems: 1,022. Domestic Relations Orders Received: 0. Eligible Domestic Relations Orders Certified: 0. Trustee Benavides arrived at the meeting at 9:05 a.m. Mr. McWilliams, Law Department, went over his memorandum on Insurable Interest Definition. Mr. McWilliams suggested that this be tabled until the next meeting. Trustee Rubley stated that he would like to have the actuary review the language. Mr. Alan Sonnanstine was present to discuss the Actuarial Report of December 31, 1992. Mr. Sonnanstine discussed the impact of the early retirement window. Mr. Sonnanstine stated that the retirement system is in very good actuarial condition, contingent upon continued receipt of recommended contributions. Employees' Retirement System October 21, 1993 Page 2 Mr. Sonnanstine referred to page A-8 Comment B which states that the increase this year in the Contingency Fund above to the normall% increase from interest credits is primarily due performed by Steven Dougan, in the Retirement Office. The corrections resulted in a $172,524 decrease in the computed present value 2, 24.future bommnd tion were madeincreasing the report contingency on what can be by $172,524. R done with the contingency reserves. of Mr. Sonnanstine referred to page htheo September 23 ws the new hod993 looking at assets, as was approved at meeting. The system 1 tem1ving should f be nve Th is t shows wsm a which is sign of actually where the sys maturity. Mr. Sonnanstine recommended that the prefunding of health care be setup as an outside trust, due to problems with the I.R.S. It was moved by Trustee Rubley, supported by Trustee Brewington to accept the actuarial report dated December 31, 1992. Adopted by the following vote: Unanimously. Mr. Sonnanstine stated to the Board that, due to the purchasing process at the State of Michigan of accepting low bid, Gabriel, will not be the actuary for the State of Roeder, Smith & Company with the Michigan. The reason was not that the State was unhappy services provided by Gabriel, Roeder, Smith & Company. Mr. Sonnanstine left the meeting at 9:50 a.m. Other Business Trustee Rubley informed the Board that he had received a letter form Loomis Sayles stating that effective September 14, 1993, Sayles & Company, Incorporated has been reorganized into a new The changes will result in entity, Loomis, Sayles & Company, L.P.-ent entity different tax treatment for Loomis, Saylesits par and have no effect and partial public ownership of the parent, but on the operations or management of Loomis, Sayles or on the management of our account. It is a mere change in form. Trustee Rubley informed the Board that the Lansing Retired in Policemens' and Firemens' Association and sspousest as d a an 1thirteenth their minimum pension for check. Trustee Rubley stated that the retirees of this system have been patient, due to the prefunding of health care but they may be a little more vocal. Trustee uindicated Lansing Retthat he ired uld provide copies of the requests submitted Policemens' and Firemens' Association to the Board members. Employees' Retirement System October 21, 1993 Page 3 Trustee Rubley gave an overview of the money managers. art k Trustee Rubley suggested that the onor to take about themeto f or continue Lazard Freres on proba term inate them. Trustee Rubley stated that The Hannah Group will be coming in November. The meeting adjourned at 10:07 a.m. Douglas L. Rubley, Interim Secretary Employees' Retirement System 12-16-93A"10:32 JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS 8th Floor, Conference Room City Hall November 9, 1993 Tuesday, 10:07 a.m. The Joint Board Meeting was called to order at 10:07 a.m. Present: Trustees Barkyoumb, Benavides, Cushman, Goodin0, Kruger, Kus, Lankheet, Luzynski, Pontz and Rubley Absent: Trustees Brewington, Brodie and Crawford - 3. Others Present: Teri Cook, Finance Department; Steven Dougan, Budget Division; Richard Zaccaro, The J.A. Hannah Investment Advisory Service. Mr. Zaccaro gave an overview performanthe ce performance ofthe different managers. money Discussion was held managers. sent Mr. Rubley informed thoseo reDent ecembert 14hn 1993 Hannahwill lbdiscuspsrecost a Joint Board Meeting allocation. Discussion was also helnahnwillabaingeaelistooftvalue managersato indicated that John Han the December meeting. Mr. Zaccaro suggested that the estedhthatutp do studya collation h s study be done after managers. Trustee Rubley sugg the December 14, 1993 meeting. a brief review of his background. Mr. Zaccaro was asked to provide The meeting adjourned at 11:25 a.m. Douglas L. Rubley, Interim Secretary 12-16-95P1?:20 RCVD OFFICIAL PROCEEDINGS FFL THE BOARD OF TRUSTEES CITY O NG EMPLOYEES' RETIREMENT SYSTEM November 10, 1993 Regular Meeting Wednesday, 8:35 a.m. 8th Floor Conference Room City Hall met in regular session and was called to order by The Board at g:35 a.m. Chairperson, Rita Pontz, Pontz and Present: Trustee Brewington, Brodie, Goodin, Kruger, Rubley - 6. - 2. Absent: Trustee Benavides and Crawford Finance Interim Secretary, Teri Cook, Others: Douglas Rubley, Budget Division and Melvin Department; Steven Dougan, McWilliams, Law Department. supported by Trustee Brodie hat It was moved by Trustee Goodin, of October 21, 1993 be approved- roved - the. minutes of the regular meeting Adopted by the following vote: Unanimously- reported Public The Secretary reported 1 new member (s)0(Dr n d ers and 1 retired. 0 reinstatements, 0 refunds, Service), 667• Refunds made since the last regular Total active membership: Retirement allowances paid for the month of October meeting: 0• Total number of retirement checks 692.64. 1993 amounted 605$632, Domestic printed ERS: Total retirementOrders Received:f 1 all three systems: 1,026. Domestic Relations Relations Orders Pending: 1. Eligible Domestic Relations orders Certified: 0• Trustee Goodin Trustee Brewington, supported by It was moved by age 67, effective a lication for regular, and sCevcreditsire�ent for Alf re a that the pp Council, 12 years servi Schmidt, City January 1, 1994 be approved. the following roll call vote: _ 6. Adopted by ton, Brodie., Goodin, Kruger, Pontz and Rubley Yeas: Brewing Nays: None. supp It was moved by Trustee orted by Trustee Goodin Brewington, request for Refund of Accumulated Contributions or that the effective December 31, 1993 be approved. F�r Adopted by Charles E. the dfollowing vote: Unanimously. nest for duty disability from Jack Jackson, eve The Board orecard1isa aiting for the report from the Medical Director. Sr. The B This items tabled. Employees' Retirement System November 10, 1993 page 2 Tabled Items from Melvin McWilliams on The memorandum endents remained tabled. The nBoard lis awaiting definitionthe actuary- review byFringe and Retirement as moved by Trustee Brewing ton, supported Discussion was held on the Elected Official ordinance to cover Benefit Ordinance.tO it the concept of the by Trustee Rubley just as it pertains to the nt System and no opinion on the other benefits. fringe benefitsreme elected officials Employees' Reti vote: Unanimously. Adopted by the following regarding requested that the Board reopen discussion Trustee Rubley of retirees. It was moved by for rehiring that the Board send a the ordinance pported by Trustee Rubley requesting that the Brewington, s and Means Committee req °f retirees communications to the Way regarding the rehiring memorandum that was sent to them be referred back to B°nrdvote:or further review. Unanimously Adopted by the following Mr. gave an update on the case of Cole v Cthe' Board Mr. McWilliamsthat he would keep Trustee McWilliams informed the Board Rubley, supported by apprised. It was moved by Goodin to remove thing from Unanimously - Adopted Ubanimsly. Adopted by the foil Other Business Of the Joint Retirement Boar gave a overview Trustee Rubley Trustee Rubley g Joint Board meeting for those Trustees) who Hannahnwould be tatation. informedonthe Board that De ember 14, 1993 to discuss cost allocation. meeting the money managers give an overview °f managers was not Trustee Rubley did not g the money s information from performance, a available. The meeting adjourned at 10:05 a.m. Rubley, terim Secretary Douglas L. Rub Employees' Retirement System OFFICIAL PROCEEDINGS OOFLTAHHE NG BOARD OF TRUSTEES CTY EMPLOYEES' RETIREMENT SYSTEM Regular Meeting 8th Floor Conference Room City Hall The Board met in regular t 8 3 51 an m Chair erson, Rita Pontz, P Present: Absent: December 16, 1993 Wednesday, 8:35 a.m. and was called to order by Trustee Brodie, Goodin, Kruger, Pontz and Rubley - 5• Trustee Benavides, Brewington and Crawford - 3• Others: Douglas Rubley, Interim Secretary, Department; Steven Dougan, Budget McWilliams, Law Department. Teri Cook, Finance Division and Melvin Trustee Goodin, supported by Trustee Brodie It was moved by of November 10, 1993 and the minutes of the regular meeting Joint Board meeting of November 9, 1993 be approved. Adoted by the following vote: Unanimously. that the p Charles D. The Secretary reported 4 new member(s) (Roger Charles D 1Walke a Public Walker, Eric M. Hassett, Troy M. Swisher, Service), 0 reinstatements, 0 refunds, 0 transfers and 0 retired. vemer Total active membership: 671. Refunds made since the last regular meeting: 0. Retirement allowances Tt otal number of retirementche nth of ocks 1993 amounted to $613,626.33. t printed ll three printed ERS: 601. Total reta eons oerschecks f or a Received:1 Domestic systems: 1,020. Domestic Rel Relations Orders Pending: 1. Eligible Domestic Relations Orders Certified: 0. Rubley, supported by Trustee Brodie to Trustee it was moved by Brewington and Crawford from the excuse Trustees Benavides, meeting. Adopted by the following vote: Unanimously. It was moved by Trustee Brodie, supported by Trustee Kruger that the application for Regular Age Service earst15e months forment Buford (Pete) Crittenden, Public Ser 5� 1994 be approved. credits, age 62, effective January Adopted by the following roll call vote: - 5. Yeas: Brodie, Goodin, Kruger, Pontz and Rubley Nays: None. that It was moved by Trustee Rubley, supported by Trustee Brodie t request for Lina be received. the Deferred Retiremen Adopted by the following vote: Unanimo t i �' . Employees' Retirement System Regular Meeting of December 16, 1993 Page 2 it was moved by Trustee Brodie, supported by Trustee Rubley that ulated the requests for Refund ofcum Ac(b (beneficiary nofl Arlo nMcQuee James be Crawford and Arnold McQ approved. vote: Unanimously. Adopted by the following Trustee Rubley, supported by Trustee Brodiethat It was moved dates for calendar year 1994 be app the schedule off meeting Adopted by the following vote: Unanimously. cal The Board reviewed the medickson on the Itquwas moved uby disability retirement for J ack Ja rted by Trustee Brodie that this request be Rubley, suppo Trustee, on form from the on the receipt of the certificatit z also Center of Occupational Healthccident form, of his initial approved pending injury, requested that a copy of the a be placed in Mr. Jackson's retirement file. Adopted by the following vote: Unanimously. mmunication Mr. Rubley informed the Board that he Pubreceived is Meetings oAct/Minutes from Melvin McWilliams regarding overview of the memorandum. Mr. Requirements and gave a brief Rubley stated that the Board was conforming to the requirements. Pending Item(s): that his memorandum end ng ribtems interest Mr Mr. McWilliams requested placed on pending . definition for dependents be McWilliams passed out some various scenarios regarding insurable interest for the Boards information. The ordinance regarding rehiring of retirees was placed on pending items. Other Business: nt had Rubley informed the Board that the La TrusteeagrGabrielw Departm Roedera reviewed the actuarial se vices on was held on the comments made bystbe he Smith & Company. Discuss Law Department. It was the agreement of the Board that t i placed back on pending items. passed out a list of retirees earning $200 or less Trustee Rubley p submitted per month. Discussion was on this list. Trustee Rubley this list for the Boards information. T" � i Employees' Retire fen Systemember l6, 1993 Regular Meeting Page 3 Mr. Rubley informed that Board that hehadseveral wlators received regarding nication from MAPERS regarding letters sion issues that originated with Houos abtion was It ken by theaBoard. systems and their retirees. N Mr. Rubley gave an overview of the performance of the money managers. The meeting adjourned at 10:12 a.m. Douglas L. Rubley, Acting Secretary stem Employees' Retirement Sy 01-20--94P*l P\ c V D JOINT BO�RD MERT-UTG BOARD OF CITY OF LANSIN%G REl`IREM.-El.L\TT 8t1"1 Ficor, conference Room C1.1 j- t).7 1:1 �- . 1-11 c e m b cz,. r 111, 1 9 33 Tuesday, 10:1.0 aoint Board Mer-,tiricf was ca-I.I,c--,,d to oy,dcr 1.0-10 a.m. -'er, Kus, e, e s D, r c) C0 rit z i-L'od ),?,u',-)*l-ey 9 3. -`s Dougan., T! A, -lai Ic ri i r) t J - n,v -v o inah -1-h e P' -,Jhi�d ae ;(:)r e. LAr"j- r oryn lla tC'f�cbangl'e h b.cl-ef" 1:r the change-s. )'-f.a.ruia Dat ortun"y tG 1 llau jj arid " - 1. - ah askc-�(' ox! m Tiarm-, , . r. " C) the .Ce.-. L vid-11. Z], s e, moc el I lo . L m-eting adjou-3-ne.d at 1.2-25 p-nit. , )ouqflas Acting Secret.a.ry "Ll- t Board Meeting Poards-Joln