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HomeMy WebLinkAbout1994 Employee's Retirement System Board Minutes02-22-94P03:20 RC, OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting 8th Floor Conference Room City Hall January 20, 1994 Wednesday, 8:40 a.m. The Board met in regular session and was called to order by Acting Secretary, Doug Rubley, at 8:40 a.m. Present: Trustee Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 8. Others: Douglas Rubley, Interim Secretary, Teri Cook, Finance Department; Steven Dougan, Budget Division and Melvin McWilliams, Law Department. Trustee Benavides arrived at 8:48 a.m. It was moved by Trustee Kehler, supported by Trustee Brodie to nominate Rita Pontz as Chairperson. Adopted by the following vote: Unanimously. It was moved by Trustee Rubley, supported by Trustee Bommarito to nominate John Brodie as Vice Chairperson. Adopted by the following vote: Unanimously. It was moved by Trustee Brodie, supported by Trustee Hollister that the minutes of the regular meeting of December 16, 1993 and the Joint Board meeting of December 14, 1993 be approved. Adopted by the following vote: Unanimously. The Secretary reported 0 new member(s), 0 reinstatements, 0 refunds, 0 transfers and 2 retired. Total active membership: 668. Refunds made since the last regular meeting: $3,275.37. Retirement allowances paid for the month of December 1993 amounted to $593,748.05. Total number of retirement checks printed ERS: 593. Total retirement checks printed for all three systems: 1,020. Domestic Relations Orders Received: 0. Domestic Relations Orders Pending: 1. Eligible Domestic Relations Orders Certified: 0. Requests for Deferred Retirement for Karen Brewington, Personnel Department and James Goodin, Treasurer's Office were received and placed on file. Employees' Retirement System Regular Meeting of January 20, 1994 Page 2 Pending Item(s) Mr. Rubley gave an overview of the Gabriel, Roeder, Smith & Co., Actuarial Services agreements for the new Board members. Discussion was held. In accordance with the Purchasing Ordinance, it was moved by Trustee Hollister, supported by Trustee Benavides that the Finance Department send out a RFQP for these services. Adopted by the following vote: Unanimously. Trustee Rubley stated that there should be at least two Board members to review the RFQPs. Trustee Brodie, Kehler and Pontz volunteered to review the RFQPs. Mr. McWilliams reviewed his memorandum on Insurable Interest Definition for Dependents for the new Board members. Mr. McWilliams stated that he still has not received input from the actuary. The Board placed this back on pending items to give new members time to review. Discussion was held on the ordinance regarding the rehiring of retirees. The Board asked that this item be reviewed by the Law Department and Finance and a draft ordinance be brought back to the Board. Other Business Mr. Rubley informed the Board that the contract for the medical service group for worker's compensation expires August, 1994. Discussion was held on these services. Trustee Hollister.left the meeting at 9:40 a.m. Trustee Rubley gave an overview of the performance of the money managers. The meeting adjourned at 10:18 a.m. Douglas L. Rubley, Acting Secretary Employees' Retirement System 02-22-94P03:20 RCvD SPECIAL MEETING OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEE' RETIREMENT SYSTEM Special Meeting 8th Floor Conference Room February 1, 1994 Tuesday, 1:05 P.M. The Board met in special session and was called to order by Chairperson Rita Pontz at 1:05 p.m. Present: Trustee Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 8. Others: James Smiertka and Melvin McWilliams, Law Department; Steven Dougan, Budget Division; Teri Cook, Finance Operations and Harold Lehman, Citizen. Mr. Smiertka passed out a draft resolution to the members present regarding pension benefits for Terry J. McKane and James D. Blair. Discussion was held on the resolution. It was moved by Trustee Benavides, supported by Trustee Hollister to accept the resolution. Adopted by the following vote: Unanimously. Mr. Smiertka passed out a draft ordinance which incorporates Resolution 4201 Early Retirement Plan for the Board members review. Trustee Rubley passed out a copy of Resolution *372 and asked Mr. Smiertka if Resolution 4372 (bargaining unit agreement tie -bars), which was passed on July 6, 1987, could also be incorporated into the ordinance. The meeting adjourned at 1:30 p.m. Douglas L. Rubley, Acting Secretary Employees' Retirement System RESOLUTION NO. BOARD OF TRUSTEES LANSING GENERAL EMPLOYEES RETIREMENT SYSTEM WHEREAS, by Resolution 201, of April 13, 1992, Lansing City Council adopted an Early Retirement Plan (the "Plan") which has been implemented by the Board to apply to elected officials; and WHEREAS, the Board of Trustees approved the retirement applications of elected officials Terry J. McKane and James D. Blair, with respective effective dates of retirement of December 30, 1992 and January 5, 1993; and WHEREAS, pension benefits for Terry J. McKane and James D. Blair approved by the Board were calculated based upon the provisions of the Plan; and WHEREAS, by City Attorney Opinion No. 94-01, the City Attorney has formally opined that Terry J. McKane and James D. Blair were each ineligible to receive pension benefits based upon Plan provisions; NOW, THEREFORE, BE IT RESOLVED, that based upon the legal opinion of the City Attorney, the Pension Board's Actuary is hereby directed to recalculate the pension benefits due Terry J. McKane and James D. Blair based upon their effective dates of retirement and to exclude the provisions of the Plan from such recalculations; BE IT FURTHER RESOLVED, that Terry J. McKane and James D. Blair shall each receive a Pension Benefit as recalculated by the Actuary pursuant to the above calculations without including a factor for recoupment of any overpayment; BE IT FURTHER RESOLVED, that the Secretary to the Board shall implement this Resolution and notify Terry J. McKane and James D. Blair of this action; and BE IT FINALLY RESOLVED that the Board's Legal Advisor is hereby directed to review the legality of any recoupment of overpayme and James D. whatever legalts oTerry action he. deems necessary should Blair Ret i take Retirement whatever System be entitled to recoupment. 03-i8-94A11:�:1 ;;fV;) OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting 8th Floor Conference Room City Hall February 17, 1994 Thursday, 9:35 a.m. The Board met in regular session and was called to order by Chairperson, Rita Pontz at 9:35 a.m. Present: Trustee Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 7. Absent: Trustee Benavides - 1. Others: Douglas Rubley, Interim Secretary, Teri Cook, Finance Department; Steven Dougan, Budget Division; Melvin McWilliams, Law Department; Margaret Herp and Winnie May, Retirees. It was moved by Trustee Hollister, supported by Trustee Kehler that the minutes of the regular meeting of January 20, 1994 and the Special Board meeting of February 1, 1994 be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member (s): (Grace Cook, Parks & Recreation), 0 reinstatements, 2 refunds, 0 transfers and 2 retired. Total active membership: 665. Refunds made since the last regular meeting: $5,741.78. Retirement allowances paid for the month of January, 1994 amounted to $638,934.19. Total number of retirement checks printed ERS: 603. Total retirement checks printed for all three systems: 1,025. Domestic Relations Orders Received: 0. Domestic Relations Orders Pending: 1. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Hollister, supported by Trustee Rubley to excuse Trustee Benavides from the meeting. Adopted by the following vote: Unanimously. It was moved by Trustee Hollister, supported by Trustee Kehler to approve the request from Stephen H. Babcock for refund of accumulated contributions. Adopted by the following vote: Unanimously. Pending Item(s) Mr. McWilliams asked that the Insurable Interest Definition for Dependents be put back on pending items. Trustee Hollister left the meeting at 9:45 a.m. Employees' Retirement System Regular Meeting of February 17, 1994 Page 2 Pending Item(s) continued The Ordinance regarding rehiring of retirees was put back on pending items. A brief discussion was held regarding the selection of a medical director. This item was placed back on pending items. Mr. McWilliams passed out revisions to the Retirement Ordinance Draft 42 (2/17/94) to those present. Mr. McWilliams pointed out the changes made. It was moved by Trustee Brodie, supported by Trustee Kehler that the Law Department review Draft #2 for possible inclusion of 415 and other pertinent language as is included in Memorandum of Understanding. Adopted by the following vote: Unanimously. Other Business It was moved by Trustee Rubley, supported by Trustee Brodie that the Law Department provide a legal opinion regarding International Investments. Requesting where it may be allowed under Public Act 55. Adopted by the following vote: Unanimously. Trustee Rubley informed the board that he had received a letter from Alexsis Corporate Service recommending that Sonia Green be sent for a reexamination. Trustee Bommarito stated she would talk with Peggy Clawson, from Alexsis, and get back with Trustee Rubley. This was placed on pending items. Trustee Rubley gave an overview of the performance of the money managers, but stated that the report from Harbor Capital was not available. The meeting adjourned at 11:03 a.m. Douglas L. Rubley, Acting Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting March 17, 1994 8th Floor Conference Room Thursday, 8:37 a.m. City Hall Lansing, MI 48933 The Board met in regular session and was called to order by Chairperson, Rita Pontz at 8:37 a.m. Present: Trustees Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 8. Others: Douglas Rubley, Interim Secretary, Teri Cook, Finance Department; Steven Dougan, Budget Division; James Smiertka and Melvin McWilliams, Law Department. It was moved by Trustee Hollister, supported by Trustee Rubley that the minutes of the regular meeting and the joint board meeting of February 17, 1994 be approved. Adopted by the following vote: Unanimously. - The Secretary reported 0 new member(s), 0 reinstatements, 1 refunds, 0 transfers and 0 retired. Total active membership: 666. Refunds made since the last regular meeting: $856.62. Retirement allowances paid for the month of February, 1994: $636,575.45. Total number of retirement checks printed ERS: 599. Total retirement checks printed for all three systems: 1,023. Domestic Relations Orders Received: 1. Domestic Relations Orders Pending: 1. Eligible Domestic Relations Orders Certified: 0. Pending Item(s) The Insurable Interest Definition for Dependents was put back on pending items. The Ordinance regarding rehiring of retirees was put back on pending items. Trustee Rubley informed the Board that a telephone survey was taken of some cities such as Jackson and Grand Rapids and how their retirement systems handle duty disability requests. The majority of those cities surveyed use a doctor other than the city doctor. It was moved by Trustee Benavides, supported by Trustee Rubley to remove this issue from pending items. Adopted by the following vote: Unanimously. Employees' Retirement System Regular Meeting of March 17, 1994 Page 2 Pending Item(s): Mr. Smiertka passed out Draft 43 revisions to the Retirement Ordinance. Discussion was held on Draft #3• It was moved by Trustee Hollister, supported by Trustee Kehler to accept Draft 43. Adopted by the following vote: Unanimously. Trustee Rubley informed the Board that Sonia Green has been scheduled for a duty disability reexam. No report has been received from the Center for Occupational Health Services. Other Business Trustee Rubley informed the Board that he had received a letter from Virginia Guernsey asking that action be taken on the prefunding of health care. Trustee Rubley informed the Board that he had received information regarding the MAPERS 1994 Spring Conference. The conference will be held at Shanty Creek Resort in Bellaire, Michigan on May 22, 1994 through May 24, 1994. Trustee Rubley asked that if any Trustee would like to attend to let Teri Cook know by Friday, March 25, 1994. Trustee Rubley informed the Board that former employee Alvan Knot has not notified the Retirement Office requesting that his retirement be deferred. Trustee Rubley informed the Board that approximately 150 members of the Employees' Retirement System, no longer employed by the City, whose files are among the active members show either service credits, employee savings fund balances or both. Trustee Rubley stated that the Retirement Office would contact the State Retirement Office to see how they handle similar situations. Trustee Hollister left the meeting at 9:30 a.m. and Trustee Benavides left the meeting at 9:40 a.m. Trustee Kruger inquired about the status of those U.A.W. employees who transferred to Teamster in regard to their service credits. Trustee Rubley stated that he has requested a legal opinion. Trustee Rubley gave an overview of the performance of the fund managers. The meeting adjourned at 10:00 a.m. Douglas L. Rubley, Acting Secretary Employees' Retirement System 05-31-94Ai0:15 RCVD OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting April 21, 1994 8th Floor Conference Room Thursday, 8:35 a.m. City Hall Lansing, MI 48933 The Board met in regular session and was called to order by Chairperson, Rita Pontz at 8:35 a.m. Present: Trustees Bommarito, Brodie, Hollister, Kehler, Kruger and Pontz - 6. Absent: Trustees Benavides and Rubley - 2. Others: Steven Dougan, Budget Division; Teri Cook, Finance Department; James Smiertka and Melvin McWilliams, Law Department; retirees Madeline Renner, Dema Riel, Margie Dyer and Margaret Herp. It was moved by Trustee Brodie, supported by Trustee Kehler that the minutes of the regular meeting of March 17, 1994 be approved. Adopted by the following vote: Unanimously. The Secretary reported 0 new member (s), 0 reinstatement (s), 0 refund(s), 0 transfer(s) and 0 retired. Total active membership: 666. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of March, 1994: $636,569.72. Total number of retirement checks printed ERS: 599. Total retirement checks pri-nted for all three systems: 1,021. Domestic Relations Orders Received: 0. Domestic Relations Orders Pending: 2. Eligible Domestic Relations Orders Certified: 0. Mr. Dougan informed the Board that the Retirement Office had received' a letter from Alvan P. Knot, Law Department requesting that his retirement be deferred. Received for information. Mr. Smiertka gave the Board an update on the status of the lawsuit filed in Federal District Court by Terry J. McKane. Mr. Smiertka stated that the City has filed a counter claim. Mr. Smiertka also stated that Council had passed an indemnification on the named defendants. The issue of Section 415 was also discussed. It was moved by Trustee Hollister, supported by Trustee Kehler to request information as to the actuary's responsibilities in informing the Board on the Section 415 matter, as to the aggregate costs of the 415 overage payments, in order for the Board to fulfill its oversight responsibilities. Adopted by the following vote: Unanimously. Employees' Retirement System Regular meeting of April 21, 1994 Page 2 Mr. Dougan informed the Board that the suit brought by Karen Green against the City of Lansing for prior service credits had been ruled in her favor by the Ingham County Circuit Court. Received for information. Mr. Dougan informed the Board that the Board had received letters from retirees regarding the prefunding of health care. Ms. Herp asked if Mr. Rubley had received an opinion from the actuary. Mr. Dougan informed Ms. Herp that he would talk with Mr. Rubley and give Ms. Herp a call. Ms Herp also asked how much money was in the Employees' Retirement System contingency fund. Mr. Dougan informed Ms. Herp that there was approximately $3.3 million. Mr. Dougan informed the Board that there is a joint board meeting scheduled for May 17, 1994 at 9:30 a.m. Rita Ahee Daboul, from National Bank of Detroit, will be present to discuss securities lending. Pending Item(s): Mr. McWilliams informed the Board that the draft of revisions to the Retirement Ordinance was on the Council Agenda but, due to litigation, Mr. Smiertka asked that it be pulled from the agenda. Mr. McWilliams informed the Board regarding the insurable interest definition for dependents that both Mr. Smiertka and himself need to meet on this item. Mr. Smiertka may have some different ideas. Mr. McWilliams informed the Board that he had met with Mr. Rubley and Ms. Bommarito regarding the ordinance on rehiring of retirees. This item is still be reviewed. Trustee Hollister left the meeting at 9:40 a.m. Other Business: Mr. Dougan informed the Board that a letter requesting certification of outside earnings for duty disability retirees will be going out in May. Mr. Dougan informed the Board that the Retirement Office had received a report back regarding Sonia Green from the Center for Occupational Health Services. The report stated that she cannot return to work as a 911 operator but may be able to do some other types of work. The aspects of reasonable accommodation will be reviewed by the Personnel Department. Employees' Retirement System Regular Meeting of April 21, 1994 Page 3 Mr. McWilliams passed out information from Fred Stone, M D Sass, regarding Executive Life. Mr. Smiertka gave an overview of his discussion with Mr. Stone. Mr. Dougan gave a brief explanation of the performance of the fund managers. The meeting adjourned at 9:55 a.m. Douglas L. Rubley Acting Secretary Employees' Retirement System 06-16-94P01:56 RCVD OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting May 19, 1994 8th Floor Conference Room Thursday, 8:35 a.m. City Hall Lansing, MI 48933 The Board met in regular session and was called to order by Chairperson, Rita Pontz at 8:35 a.m. Present: Trustees Bommarito, Brodie, Kehler, Kruger, Pontz and Rubley - 6. Absent: Trustees Benavides and Hollister - 2. Others: Steven Dougan, Budget Division; Teri Cook, Finance Department and Melvin McWilliams, Law Department. It was moved by Trustee Brodie, supported by Trustee Kehler that the minutes of the regular meeting of April 21, 1994 be approved with one correction. Adopted by the following vote: Unanimously. The Secretary reported 0 new member (s), 0 reinstatement (s), 0 refund(s), 0 transfer(s) and 0 retired. Total active membership: 666. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of April, 1994: $636,396.54. Total number of retirement checks printed ERS: 600. Total retirement checks printed for all three systems: 1,025. Domestic Relations Orders Received: 0. Domestic Relations Orders Pending: 2. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Brodie, supported by Trustee Kehler to excuse Trustees Benavides and Hollister. Adopted by the following vote: Unanimously. Trustee Rubley informed the Board that the lawsuit filed in Federal Court by James D. Blair against the City and the Employees' Retirement Board is similar ,� the lawsuit filed by Terry J. McKane. Discussion was held, Trustee Pontz asked that a copy of the lawsuit be sent to each board°member. Discussion was held on Section 415 of the Internal Revenue Service Code. Trustee Rubley gave an update on the status of prefunding of health care. Trustee Rubley indicated that due to being in the process for going out for RFQP for actuarial services it is being held up but will proceed once a firm is selected. Trustee Rubley asked that this item be put on pending items. Employees' Retirement System Regular meeting of May 19, 1994 Page 2 Trustee Rubley informed the Board that Mr. Dougan has looked into duty and non -duty disability status individuals. The retirement ordinance is quite specific for duty disability individuals, in that they shall be converted to regular age and service pension at age 60. The language is not clear for non -duty disability status, but references exist about eventually going to regular retirement. Trustee Rubley stated that he will request an opinion from the Law Department regarding the non -duty disability status. Trustee Rubley stated that there are two duty disability individuals that the Board should take action on. The individuals are Robert Ball and John Luks. It was moved by Trustee Kehler, supported by Trustee Brodie that the conversion from duty disability to regular age and service for Robert Ball attained the age of 60 on 2/20/92 be approved. Adopted by the following roll call: Yeas: Bommarito, Brodie, Kehler, Kruger, Pontz and Rubley. Nays: None It was moved by Trustee Kehler, supported by Trustee Bommarito that the conversion from duty disability to regular age and service for John Luks Jr. attained the age of 60 on 1/6/92 be approved. Adopted by the following roll call: Yeas: Bommarito, Brodie, Kehler, Kruger, Pontz and Rubley. Nays: None Other Business: Trustees Pontz and Kruger asked to be excused from the Joint Board meeting on June 14, 1994. Trustee Rubley informed the Board that the Police & Fire Board is working on a retirement seminar. This seminar will also be offered to employees of this system. Trustee Bommarito left the meeting at 10:40 a.m. Trustee Rubley informed the Board that he had met with Trustees Pontz and Kehler to go over the RFQP for actuarial services. Trustee Rubley indicated that he would like to get it out by early June so a decision can be made by July 1st. Trustee Rubley gave an overview of the performance of the fund managers. The meeting adjourned at 10:45 a.m. Douglas L. Rubley, ting Secretary Employees' Retirement System 07-26-94I CIC • 0U [�LVU OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting June 16, 1994 8th Floor Conference Room Thursday, 8:45 a.m. City Hall Lansing, MI 48933 The Board met in regular session and was called to order by Vice Chairperson, John Brodie at 8:45 a.m. Present: Trustees Benavides, Bommarito, Brodie, Kehler, and Rubley - 5. Absent: Trustees Hollister, Kruger and Pontz - 3. Others: Steven Dougan, Budget Division; Teri Cook, Finance Department and Melvin'McWilliams, Law Department. It was moved by Trustee Bommarito, supported by Trustee Kehler that the minutes of the regular meeting of May 19, 1994 be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member(s) (Carl Burch, Public Service - O&M) , 0 reinstatement (s) , 0 refund (s) , 0 transfer (s) and 1 retired. Total active membership: 667. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of May, 1994: $635,041.88. Total number of retirement checks printed ERS: 599. Total retirement checks printed for all three systems: 1,026. Domestic Relations Orders Received: 0. Domestic Relations Orders Pending: 2. Eligible Domestic Relations Orders Certified: 0. It was moved by Trustee Kehler, supported by Trustee Rubley to excuse Trustees Hollister, Kruger and Pontz. Adopted by the following vote: Unanimously. It was moved by Trustee Benavides, supported by Trustee Kehler that the application for regular age and service retirement -non -duty death for Eugene Clark, Public Service, 24 years, 3 months service credits, age 45, effective May 21, 1994 be approved. Adopted by the following roll call: Yeas: Benavides, Bommarito, Brodie, Kehler, Rubley - 5. Nays: None. Trustee Rubley informed the Board that he had sent a memorandum to the Law Department requesting a legal opinion regarding the duty and non -duty disability language in the retirement ordinance. Trustee Rubley asked that this be put on pending items. Employees' Retirement System Regular Meeting of June 16, 1994 Page 2 The Board reviewed a request from Barbara Holliday to repurchase service credits. Ms. Holliday left the employment of the City in July, 1977 and was rehired by the City in November, 1977. Discussion was held. It was moved by Trustee Benavides, supported by Trustee Kehler that this item be referred to the Law Department for review and recommendation and that Ms. Holliday be notified of the Boards action. Adopted by the following vote: Unanimously. Mr. Rubley gave an overview of circumstances regarding the Cole v Cole amended judgement of divorce. The decree states that Mr. Cole never had a right to name anyone other than his spouse Joanne Cole as his beneficiary. Decree terminates Barbara J. Smith and adds Joanne Cole. Because there was a substantial age difference between Joanne Cole and Barbara J. Smith and adjustment will be made to Mr. Cole's retirement pension to be retro to retirement date. The Retirement Office will notify both lawyers involved of the retirement pension change. Trustee Rubley presented for the Board's approval the following names as election inspectors for the upcoming Parks Department Trustee Election. They are Margaret Pollard, Public Service Department and Jan Budden, Assessor's Office. It was moved by Trustee Benavides, supported by Trustee Brodie that the Board approve Margaret Pollard and Jan Budden as election inspectors for the Parks Department Trustee Election. Adopted by the following vote: Unanimously. Trustee Rubley stated that as of this meeting the Retirement Office had received two petitions from John S. Brodie and Scott A. Dedic. Both petitions were certified and that both candidates have filed valid petitions. Trustee Rubley indicated that the deadline for turning petitions is 4:00 p.m. on Thursday, June 30, 1994. The election will be held July 11, 1994 at Oak Park and July 12, 1994 at city hall. Trustee Rubley informed the Board that one of the sessions at MAPERS covered pending bills in the House at the Federal level. One of the bills pending deals with IRS Section 415. Mr. Rubley gave an overview of this bill. Trustee Rubley stated that he would get a copy of the Bill for the Board members. This items placed on pending items. Employees' Retirement System Regular Meeting of June 16, 1994 Page 3 Other Business: Trustee Rubley informed the Board that he had sent a letter to Alvan Knot with respect to his option to make a reimbursement to the Employees' Retirement System of retirement withholding for his final bi-weekly paycheck and pro -rated longevity. This was due to the payroll code having to be changed to include severance, longevity and two week normal pay. The letter stated that this reimbursement must be received before the close of the business on Thursday, June 30, 1994. The Board discussed the issue of insurable interest definition for dependents. It was moved by Trustee Benavides, supported by Trustee Kehler that this issue be forwarded to the Mayor for referral to the unions for their input on insurable interest for dependents and that their input be brought back to the Board. Adopted by the following vote: Unanimously. Trustee Rubley gave an overview of the performance of the fund managers. The meeting adjourned at 9:55 a.m. Douglas L. Rubley, A ing Secretary Employees' Retirement System 08-22-94P02:41 PCVD OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting July 21, 1994 8th Floor Conference Room Thursday, 8:35 a.m. City Hall Lansing, MI 48933 The Board met in regular session and was called to order to Chairperson Rita Pontz at 8:35 a.m. Present: Trustees Bommarito, Brodie, Kehler, Kruger, Pontz and Rubley - 6. Absent: Trustees Benavides and Hollister - 2. Others: Steve Dougan, Budget Division; Melvin McWilliams, Law Department. It was moved by Trustee Brodie, supported by Trustee Kehler, that the minutes of the regular meeting of June 16, 1994, be approved. Adopted by the following vote: Unanimously. Subsequently, Trustee Rubley moved, Trustee Brodie supported, the change of the word "Council" to "Mayor" on page three of the June minutes, relative to the referral of language regarding insurable interest. There was no public comment. The Secretary reported 5 new members, 0 reinstatements, 0 refunds, 0 transfers, and 0 retired. Total membership: 671. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of June, 1994: $636,011.39. Total number of ERS retirement checks printed: 597. Total retirement checks printed for all three systems: 1,025. Domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Trustee Kehler moved, Trustee Rubley supported, to excuse Trustees Benavides and Hollister. Adopted by the following vote: Unanimously. Mr. Rubley informed the Board members that John Brodie was re- elected as the Parks Department trustee in the election held July 11-12 by a vote of 36 to 28 over Scott Dedic, for a four-year term. Mr. Rubley reported on a request for accumulated contributions from Karen Nicholoff McAdams, who worked for the City in 1973. Moved by Trustee Brodie, supported by Trustee Kehler, that the request for refund of contributions be approved. Adopted by the following vote: Unanimously. Employees' Retirement System Regular meeting of July 21, 1994 Page 2 Mr. McWilliams provided a memo to the Board regarding the ordinance language for duty and non -duty disability retirement status (attached). There was discussion regarding the language of the ordinance as it now stands. Ms. Pontz requested whether the actuary had a difference in funding calculations for disability retirees. Mr. Rubley indicated there is a difference in tax treatment in these situations. Mr. Rubley also requested the language pertaining to duty disability situations be referred to the Mayor's Office and to the Labor Relations Office. The Board concurred. Mr. Rubley informed the Board of a letter from Gabriel, Roeder, Smith & Co. regarding pop-up provisions with respect to divorce decrees. He also reported on the pension increases negotiated with the Police & Fire unions, including the minimum benefit increases and the cost of living adjustments at age 60, and the change in the actuarial rate of return assumption from 7% to 8%, plus the elimination of the contingency reserve in the P&F fund. Mr. Rubley is to contact the City Attorney's office with respect to the ordinance changes regarding the 1992 early retirement plan. He is also to inquire about an executive session with the City Council regarding the rate of return assumptions, and also including discussion as to who might have conflicts of interest. There was no investment performance report. The meeting with J.A. Hannah Group was rescheduled to August 16. The meeting adjourned at 10:17 a.m. Douglas L. Rubley Acting Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM .Regular Meeting 8th Floor Conference Room City Hall Lansing, MI 48933 August 18, 1994 Thursday, 8:42 a.m. The Board met in regular session and was called to order to Chairperson Rita Pontz at 8:42 a.m. Present: Trustees Benavides, Bommarito, Brodie, Kruger, Pontz and Rubley - 6. Absent., Trustees Hollister and Kehler - 2. Others: James Smiertka, Law Department and Teri Cook, Finance Operations. It was moved by Trustee Brodie, supported by Trustee Rubley that the minutes of the regular meeting of July 21, 1994, be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new members (Jack Jackson, Public Service), 0 reinstatements, 0 refunds, 0 transfers, and 0 retired. Total membership: 673. Refunds made since the last regular meeting: $38.53. Retirement allowances paid for the month of July, 1994: $636,741.13. Total number of ERS retirement checks printed: 596. Total retirement checks printed for all three systems: 1,029. romestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Rubley, supported by Trustee Bommarito to excuse Trustees Hollister and Kehler from the meeting. Adopted by the following vote: Unanimously. Mr. Rubley informed the Board members that the City Attorney, per the direction of Ways & Means Committee, sent letters to those employees who exceeded Section 415 informing them that the payment were under investigation. Mr. Smiertka was present and gave an update on the status of the payments. Discussion was held. Discussion was also held on the board approved Draft #3 revisions to the Retirement Ordinance. The ordinance was placed on Council agenda, in March, but was pulled. Mr. Smiertka recommended that the ordinance be placed back on the agenda. Employees' Retirement System Regular meeting of August 18, 1994 Page 2 Other Business: Trustee Rubley informed the board that he had sent a communication to Tony Benavides, Chairperson, Ways and Means giving an update on the status of the Prefunding of Retirement Health Care. Trustee Bommarito left the meeting at 9:35 a.m. Trustee Rubley passed out a draft of the Request for Qualifications -Proposals for actuarial services. Mr.. Rubley asked the board to review and if they have any comments to reply back to him in two weeks. Trustee Bommarito returned to the meeting at 9:47 a.m. Trustee Rubley informed the board that there will be a joint board meeting following the Police & Fire Board meeting on September 22, 1994 to discuss the asset allocation study. There was no investment performance report. The meeting adjourned at 10:12 a.m. Douglas L. Ruble , Acting Secretary Employees' Retirement System SPECIAL MEETING OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Special Meeting September 15, 1994 9th Floor Conference Room Thursday, 4:00 p.m. Lansing, MI 48933 The Board met in special session and was called to order by Vice Chairperson, John Brodie at 4:00 p.m. Present: Trustees Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Rubley - 7. Absent: Trustee Pontz - 1. Others: James Smiertka, Law Department; Steve Dougan, Budget Division; Teri Cook, Finance Operations; Lloyd Teets, Citizen, Ken Vaughn, Citizen and Harold Lehman. Discussion was held on Draft 44 of the Retirement Ordinance. Mr. Smiertka indicated that there was no drastic change from Draft 43 only clarification of lines 12-14. Pablic Comment(s): Mr. Teets expressed that he was appalled that the Board knew that an ordinance should have been implemented and that no Board member came before the Council or made it public. Trustee Hollister acknowledged that an ordinance was required in 1992. This is the ordinance that addresses the bargaining unit agreement and resolution. Mr. Smiertka indicated that Draft #4 covers only the early retirement. It was moved by Trustee Rubley, supported by Trustee Hollister that Draft #4 was reviewed by the Board with minor clarification from Draft 43 and that it be approved. Adopted by the following vote: Unanimously. Other Business: Trustee Rubley indicated that it was his intent to seek an I.R.S. Letter of Determination on the retirement system. The meeting adjourned at 4:30 p.m. Douglas L. Rubley, cting Secretary Employees' Retirement System REVISED OFFIC--i�'L E�-PDYNGS OF THE BOARD OF TRUSTEES Lt NS1 !G �i rgATY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting September 22, 1994 9th Floor Conference Room Thursday, 8:35 a.m. City Hall Lansing, MI 48933 The Board met in regular session and was called to order to Chairperson Rita Pontz at 8:35 a.m. Present: Trustees Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 8. Others: James Smiertka, Law Department and Teri Cook, Finance Operations, Steve Dougan, Budget; Bob Swanson, Finance Director Nominee; Charles Leland, Winifred May, Margaret Herp It was moved by Trustee Brodie, supported by Trustee Bommarito that the minutes of the regular meeting of August 18, 1994 and the Special meeting of September 15, 1994 with one correction be approved. Adopted by the following vote: Unanimously. The Secretary reported 2 new member(s) (Steven J. Patino, Public Service and Eric P. Stinson, Parks & Recreation), 0 reinstatements, 0 refunds, 0 transfers, and 0 retired. Total membership: 673. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of August, 1994: $633,508.72. Total number of ERS retirement checks printed: 594. Total retirement checks printed for all three systems: 1,028. Domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Mr. Charles Leland was present requesting that the Board take action regarding an increase in minumum pensions for retirees and the prefunding of health care. Trustee Hollister left the meeting at 8:50 a.m. It was moved by Trustee Kehler, supported by Trustee Brodie to approve the application for regular age and service retirement for Clayton R. Church, Public Service Department, 25 years service credits, age 55, effective October 8, 1994. Adopted by the following roll call: Yeas: Bommarito, Brodie, Kehler, Kruger, Pontz and Rubley - 6. Nays: None Trustee Hollister returned to the meeting at 8:55 a.m. Employees' Retirement System Regular meeting of September 22, 1994 Page 2 Trustee Rubley wanted the Board to be aware that according to legal opinion 9401 any collective bargained agreements supersede the ordinance. Non -collective bargained covered employees may not. This may be a concern for this Board in that some retirees who are tie -barred may not be entitled to any increase that is not in the ordinance. Discussion was held regarding this legal opinion and the conseqences it would have on this Board. It was moved by Trustee Rubley, supported by Trustee Brodie that a committee be appointed by the Board to draft a position paper on behalf of the Board regarding tie -barred increases with a letter to Council informing them that the Board is preparing a position paper. Trustees Rubley, Pontz, Kehler and Kruger volunteered to be on the committee to draft a position paper. Adopted by the following vote: Unanimously. Trustee Benavides arrived at 9:11 a.m. Trustee Hollister left the meeting at 9:23 a.m. Trustee Rubley thanked Mr. Smiertka for attending meeting to address the concerns of the Board. Trustee Hollister returned to the meeting at 9:40 a.m. Trustee Pontz asked Mr. Smiertka for an update on the Section 415 payments. Mr. Smiertka gave an update and indicated that payments in excess of 415 limits which do not come out of the pension systems, are permissible under various structures if authorized. The investment managers presentation schedule was referred to the next Board meeting. The meeting adjourned at 10:00 a.m. Douglas L. Rubley, Acting Secretary Employees' Retirement System ��FFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES f" j 11: C, q CITY OF LANSING irtn EMPLOYEES' RETIREMENT SYSTEM JR Regular Meeting 8th Floor Conference Room City Hall Lansing, MI October 20, 1994 Thursday, 8:40 a.m. The Board met in regular session and was called to order to Chairperson Rita Pontz at 8:40 a.m. Present: Trustees Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 8. Others: Melvin McWilliams, Law Department and Teri Cook, Finance Operations, Steve Dougan, Budget; Edward Piloske. It was moved by Trustee Brodie, supported by Trustee Hollister that the minutes of the regular meeting of September 22, 1994 be approved. Adopted by the following vote: Unanimously. The Acting Secretary reported 3 new member(s) (Robert Black and Steven Hooks, Parks & Recreation; Jerry Simpson, Public Service), 0 reinstatements, 0 refunds, 0 transfers, and 0 retired. Total membership: 676. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of August, 1994: $630,452.63. Total number of ERS retirement checks printed: 592. Total retirement checks printed for all three systems: 1,035. Domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Kruger, supported by Trustee Kehler that the application for regular age and service retirement for Jerry L. McCarrick, Public Service, 16 years service credits, age 61, effective November 16, 1994 be approved: Adopted by the following roll call: Yeas: Brodie, Hollister, Kehler, Kruger, Pontz, Rubley - 6. Nays: None. Trustee Bommarito arrived at the meeting at 8:40 a.m. Trustee Benavides arrived at the meeting at 8:45 a.m. Mr. Alan Sonnanstine, Gabriel, Roeder, Smith & Company, was present and give an overview of the actuarial report of December 31, 1993. Trustee Hollister left the meeting at 8:55 a.m. Employees' Retirement System Regular meeting of October 20, 1994 Page 2 Mr. Sonnanstine indicated that the health insurance issue continues to grow. Decision should be made regarding setting money aside to fund retiree health care. Mr. Sonnanstine concluded that the retirement system is in very good actuarial condition, contingent upon continued receipt of recommended contributions. Me. McWilliams spoke regarding rehiring of retirees. The Attorney's Office is of the opinion that Section 292.145 is included within the Code of Ordinances. Discussion was held regarding a set schedule to have the investment managers in to make their presentations. It was the decision of the Board to have the investment managers in on a quarterly basis along with the consultant. Other Business: Mr. Rubley handed out Draft 45 of the ordinance on the early retirement, for the Boards information. No action has been taken by Council on Draft #4 or #5 of the ordinance. Mr. Rubley informed the Board that the "hold harmless" resolution for the Board has not been written or acted upon. Trustee Pontz asked that if any Board member had any comments or changes to the draft of the position paper they received to submit them in writing to Mr. Rubley by October 28, 1994. Mr. Rubley indicated that he draft a memo to the City Attorney with a draft of the position paper for his review. The meeting adjourned at 10:10 a.m. Douglas L. Rubley, cting Secretary Employees' Retirement System r) f5 OgCIAL PROCEEDINGS OF THE BOARD OF TRUSTEES Gl-�- �i CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting November 10, 1994 8th Floor Conference Room Thursday, 8:40 a.m. City Hall Lansing, MI The Board met in regular session and was called to order to Chairperson Rita Pontz at 8:40 a.m. Present: Trustees Benavides, Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz and Rubley - 8. Others: Melvin McWilliams, Law Department and Teri Cook, Finance Operations, Steve Dougan, Budget. It was moved by Trustee Brodie, supported by Trustee Kehler that the minutes of the regular meeting of October 20, 1994 as amended and the revised minutes of September 22, 1994 be approved. Adopted by the following vote: Unanimously. The Acting Secretary reported 0 new member(s), 0 reinstatements, 0 refunds, 0 transfers, and 1 retired. Total membership: 673. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of October, 1994: $629,909.80. Total number of ERS retirement checks printed: 591. Total retirement checks printed for all three systems: 1,034. Domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Brodie, supported by Trustee Rubley that the application for regular age and service retirement for Lee W. Aldrich, Police Department, 17 years 5 months service credits, age 48, effective November 2, 1994 be approved: Adopted by the following roll call: Yeas: Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz, Rubley - 7. Nays: None. It was moved by Trustee Brodie, supported by Trustee Rubley that the application for regular age and service retirement for George A. Sloane, Public Service Department, 17 years 4 months service credits, age 61, effective November 1, 1994 be approved. Adopted by the following roll call: Yeas: Bommarito, Brodie, Hollister, Kehler, Kruger, Pontz, Rubley - 7. Nays: None. Employees' Retirement System Regular Meeting of November 10, 1994 Page 2 Mr. Rubley informed the Board that they had received copies of the RFQPs for actuarial services. Discussion was held. Trustee Rubley suggested that this Board setup a separate date to open the fees proposals. The meeting was setup for November 14, 1994 at 11:00 a.m. Trustee Benavides arrived at the meeting at 8:55 a.m. Other Business Trustee Rubley informed the Board that he had received a letter from Trustee Ron Kruger that was referred to Council regarding Section 415 which he states that he feels that no monies should come out of the retirement funds to cover the excess costs. Trustee Rubley informed the Board that the Retirement Office is making attempts to recover some over payments made to a retiree who was deceased, Mr. Lloyd Head. Mr. Lloyd Head's checks were sent to a federal credit union. Normally, banks will let us know if checks are deposited into a deceased account. This was not the case with this federal credit union. Mr. Lloyd Head's son Lance Head is in charge of the estate. We have written to Mr. Head informing him that he has received checks which total approximately $1,500.00 in aggregate total that does not belong to the estate. We have copied the checks for the County Probate Court so that they are aware of the fact that this person is running the affairs for that court we want to make sure that they inform Mr. Lance Head that he has a fiduciary role in informing us and making sure that we get the money back on a prompt basis. Trustee Rubley informed that Board the he had met with James Smiertka and Rita Pontz to go over the points that were brought up in the draft of the position paper. The position paper would be changed to a recommendation of the procedure that needs to be taken regarding union negotiated changes to the retirement ordinance. Trustee Rubley informed the Board that he would draft this recommendation letter and get a draft to the Board members for their review. Trustee Hollister left the meeting at 9:20 a.m. Trustee Kruger stated that he has received inquiries from employees regarding service credit statements. Trustee Rubley stated that these statements are not necessarily a requirement to be sent out it was just part of our service. Trustee Rubley stated that with our new Personnel/Payroll package it is our intent to have the service credits show on employees payroll check stubs. Employees' Retirement System Regular Meeting of November 10, 1994 Page 3 Trustee Kruger stated that he had received complaints from employees in the Defined Contribution Plan and their lack of selection of vendors for investments. Trustee Rubley indicated that he is reviewing other vendors. The Meeting Adjourned at 9:40 a.m. Douglas Rubley, Actin Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting December 15, 1994 8th Floor Conference Room Thursday, 8:40 a.m. City Hall Lansing, MI The Board met in regular session and was called to order to Chairperson Rita Pontz at 8:40 a.m. Present: Trustees Benavides, Bommarito, Brodie, Kruger, Pontz and Rubley - 6. Absent: Trustees Hollister and Kehler - 2. Others: Melvin McWilliams, Law Department and Teri Cook, Finance Operations, Steve Dougan, Budget. It was moved by Trustee Benavides, supported by Trustee Brodie that the minutes of the regular meeting of November 10, 1994 as amended be approved. Adopted by the following vote: Unanimously. The Acting Secretary reported 1 new member (s) (Livingston Thompson, Public Service -O&M), 0 reinstatements, 0 refunds, 0 transfers, and 3 retired. Total membership: 677. Refunds made since the last regular meeting: $0. Retirement allowances paid for the month of November, 1994: $618,191.30. Total number of ERS retirement checks printed: 594. Total retirement checks printed for all three systems: 1,042. Domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Trustee Rubley passed out a list of all duty disability retirees for the Board's review. Discussion was held. Trustee Rubley recommended that the Chairperson along with other Board members review these files and then bring their recommendation back to the Board for their decision on whether they will send anyone for a re- examination. It was moved by Trustee Rubley, supported by Trustee Benavides to table this item until the next meeting. Adopted by the following vote: Unanimously. It was moved by Trustee Benavides, supported by Trustee Brodie to approved the schedule of meeting dates for calendar year 1995. Adopted by the following vote: Unanimously. It was moved by Trustee Benavides, supported by Trustee Rubley to retain Rita Pontz as chairperson and John Brodie as vice chairperson. Adopted by the following vote: Unanimously. Employees' Retirement System Regular Meeting of December 15, 1994 Page 2 Mr. Rubley informed the Board that at the meeting on November 14, 1994 the proposals for actuarial services were reviewed. It was the recommendation of those present to continue with Gabriel, Roeder, Smith & Company. It was moved by Trustee Rubley, supported by Trustee Benavides to hire Gabriel, Roeder, Smith & Company for a 5 year contract with 1 year renewals subject to rates with option of additional 5 years after the Board's review. Adopted by the following vote: Unanimously. Mr. Rubley informed the Board that the draft of revisions to the Retirement Ordinance that they received includes all union changes up to the early retirement of 1992. Discussion was held. Trustee Rubley recommended that this item be tabled pending Public Hearing on January 9, 1995. It was moved by Trustee Rubley, supported by Trustee Benavides to excuse Trustees Hollister and Kehler from the meeting. Adopted by the following vote: Unanimously. Other Business Trustee Rubley informed the Board that the position paper was presented to Council and was referred to Ways & Means. Trustee Rubley informed the Board that this was his last meeting as Acting Secretary. Trustee Rubley stated that he has enjoyed working with the Board. The Board stated that Trustee Rubley has done an excellent job. The Meeting Adjourned at 9:30 a.m. Douglas Rubley, Acting Secretary Employees' Retirement System