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HomeMy WebLinkAbout2004 Employee's Retirement System Board MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:40 January 22, 2004 Thursday, 8:30 a.m. Present:, Andrews, Antekeier, Benavides, Cunningham, Murphy, Piloske, Rhode - 7 Absent, Dedic, Meyer - 2 Others: Gary Gustafson, Finance Department; Jack Roberts, Law Department: `:-' David Hoffman from Gabriel, Roeder, Smith and Company gave the Actuary Report. It was moved by Trustee Rhode and supported by Trustee Benavides to transfer the recommended amount of money per the Actuary Report from the Reserve for Employer Contributions to the Reserve for Retired Benefit Payments as of December 31, 2002. Adopted by the following vote: Unanimously It was moved by Trustee Rhode and supported by Trustee Benavides to transfer the recommended amount of money per the Actuary Report from the Reserve for Employers Contributions to the Reserve for Retired Benefit Payments to fund the cumulative benefit increases expected to paid in 2003. Adopted by the following vote: Unanimously It was moved by Trustee Murphy and supported by Trustee Piloske to approve the minutes of December 23, 2004. Adopted Unanimously The Secretary reported: 1 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 495. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of December 2003 amounted $1,083,889.02. Total retirement checks printed for the ERS System 704. 6 deaths: Margaret Herp, retired on 01/05/82, died 01/01/04, age 87, no surviving spouse; Albert Reinhart Jr., retired on 01/05/88, died 01/05/04, age 73, chose straight life; Edward Graft, retired on 04/01/80, died on 01/01/04, age 89, surviving spouse receives 50%; Robert P. Employees Retirement System Regular Meeting of January 22, 2004 page 2 Belen, retired on 10/05/89, died on 01/10/04, age 78, surviving spouse receives 100%; Leo J. Fox, retired on 01/24/80, died on 01/10/04, age 84, surviving spouse receives 100%; Dewight J. Bunn, retired on 04/12/86, died 01/11/04, age 79, no surviving spouse. Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. It was moved by Trustee Benavides and supported by Trustee Cunningham to approve the following application for Regular Age and Service Retirement: Jan L. Maier, Assessors, 18 years 5 months service credits, age 63 years, effective February 1, 2004. Adopted by the following vote: Unanimously It was moved by Trustee Benavides and supported by Trustee Cunningham to excuse board members Dedic and Meyer. Adopted by the following vote: Unanimously. Trustee Rhode updated the board on the search for an International Investment Firm. Trustee Rhode explained to the board the analyzing and updating the 1988 Early Out Retirees regarding their eligibility for COLA. Trustee Rhode handed out new Election Rules and Regulation Policy to the trustees for review. Jack Roberts gave an update on the pension forfeiture case explaining that a court order has been received involving the repayment to the City for repayment to the trash bag fund. Jack Roberts also gave an opinion on the legality of age being considered in buying back time to the Defined Benefit Plan from the Defined Contribution Plan. It was determined to be legal in this case. It was moved Trustee Piloske and supported by Trustee Cunningham to put this opinion into our records. Adopted Unanimously Trustee Rhode gave the Investment report for December Employees Retirement System Regular Meeting of January 22, 2004 page 3 Minutes approved on-� 2- 0 Robert Antekeier, Chairperson Wjo�� Jill Oode, Secretary Em loyees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting February 19, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:30 Present:, Andrews, Antekeier, Cunningham, Dedic, Meyer, Piloske, Rhode - 7 Absent, Benavides, Murphy - 2 Others: Gary Gustafson, Amy Kraus, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Piloske and supported by Trustee Dedic to approve the minutes of January 22, 2004. Adopted Unanimously The Secretary reported: 0 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 494. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of January 2004 amounted $1,091,934.67. Total retirement checks printed for the ERS System 703. 2 deaths: John T. Anas, retired on 01/01/76, died on 01/31/04, age 91, no surviving spouse. Glenn Sherman, retired on 09/10/01, died on 02/08/04, age 54, daughter Kara to receive 50%. Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. It was moved by Trustee Rhode and supported by Trustee Dedic in conjunction with Dr. Chiodo's report to approve the Duty Disability Retirement for James R. Crisp effective February 20, 2004. Adopted Unanimously It was moved by Trustee Meyer and supported by Trustee Andrews to excuse Trustees Benavides and Murphy. Adopted Unanimously Mr. Jim Buckley from the Independent accounting firm of Price, Waterhouse, and Coopers explained to the board the procedures his firm uses in auditing the City of Lansing's Employees Retirement System Regular Meeting of February 19, 2004 page 2 financial position. He explained to the board that they do look at and analyze the accounting for the assets of the retirement boards in their audit as part of their procedures. Trustee Rhode gave an explanation on the International Search for Investment firms. It was moved by Trustee Piloske and supported by Trustee Rhode to interview three and possibly four Investment firms. The three selected are: Artisan Partners, GM, and Julius Baer. Firms are to be interviewed in April. Adopted Unanimously Trustee Rhode explained a letter received from deferred employee Cleophus Boyd Jr. asking to be allowed to buy back into the Defined Benefit Retirement System. Jill explained that the opportunity was only for current employees per the contract and ordinance. Trustee Rhode updated the board on the employees who bought back into the Employees Retirement System per the new contract. Trustee Cunningham asked the board whether an employee on Duty Disability has to convert to Regular Age and Service if they are eligible. Jack Roberts will research the issue. It was moved by Trustee Rhode and supported by Trustee Cunningham to have Gabriel, Roeder, Smith and Company do a cost proposal for Valuation of Retiree Health Care. Costs to be approximately $10,000 to $15,000 and not to exceed $25,000. Cost of proposal to be split with Police and Fire System. Adopted Unanimously It was moved by Trustee Meyers and supported by Trustee Piloske to approve the Election Rules as presented and to put them in the minutes and policy book. Adopted Unanimously Trustee Rhode did not have the Investment report for January but will provide each board member a copy. Minutes approved on Y ode, Secretary yees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING Cw: EMPLOYEES' RETIREMENT SYSTEM Regular Meeting March 18, 2004 :City;Council Conference Room Thursday, 8:30 a.m. -10thi--Fioor=,City Hall Lansing, M-1 The Board met in regular session and was called to order at 8:30 Present:, Andrews, Antekeier, Benavides, Cunningham, Dedic, Meyer, Murphy, Piloske, Rhode - 9 Absent, None Others: Gary Gustafson, Finance Department; Jack Roberts, Law Department. Shane Silsby, Transportation It was moved by Trustee Meyer and supported by Trustee Dedic to approve the minutes of February 19, 2004. Adopted Unanimously Shane Silsby spoke to the board on the cost of his buy back factor into the retirement system. (Conversion Factor) The board advised him to put it into writing for review. The Secretary reported: 0 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 492. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of February 2004 amounted to $1,088,544.85. Total retirement checks printed for the ERS System 701. 0 deaths: Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Murphy to approve the following requests for Age and Service Retirement: Bruce Snyder, Parks (Zoo), 30 years 1 month service credit, age 53 years, effective April 15, 2004. Herbert Reinert, P/S O&M, 32 years service credit, age 60 years, effective April 15, 2004. Adopted Unanimously Employees Retirement System Regular Meeting of March 18, 2004 page 2 It was moved by Trustee Rhode and supported by Trustee Cunningham in conjunction with Dr. Chiodo's report to approve the Duty Disability Retirements for Robert Beasley and Terry Medlock effective March 19, 2004. Adopted Unanimously It was moved by Trustee Rhode and supported by Trustee Andrews to approve the refund of Stephanie Rogers retirement contributions. Adopted Unanimously It was moved by Trustee Meyer and supported by Trustee Andrews to approve the approximate $900.00 fee for the 2003 Minute Master. Adopted Unanimously It was moved by Trustee Rhode and supported by Trustee Meyer to pay one half ($14,000.00) for the 2003 Actuary Report. This is only for the year 2003. Adopted Unanimously Trustee Rhode handed out year end financial statements for the year ended 2003. Jack Roberts explained to the board that it is a requirement for duty disability retirees at age 60 to convert to a regular retirement. Trustee Rhode handed out and discussed the investment report for February. Minutes approved on 'y' 2-t.'y Ji Rhode, Secretary Employees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD 4,��..CFIVFD BY TRUSTEES CITY OF LANSING JUN 1 0 2004 EMPLOYEES' RETIREMENT SYSTEM OPER. Regular Meeting April 22, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:40 Present:, Andrews, Antekeier, Benavides, Cunningham, Dedic, Murphy, Piloske, Rhode - 8 Absent, Meyer Others: Gary Gustafson, Finance Department; Jack Roberts, Law Department. Cleosphus Boyd It was moved by Trustee Piloske and supported by Trustee Andrews to approve the minutes of March 18, 2004. Adopted Unanimously Cleosphus Boyd spoke to the board about not having the opportunity to convert back into the Defined Benefit retirement system and his benefits. The Secretary reported: 1 new member(s) 0 reinstatement(s), 1 refund(s), 0 transfers, 2 retired. Total active membership: 757. Refunds made since the last regular meeting amounted to $1,917.92. Retirement allowances paid for the month of March 2004 amounted to $1,094,058.74. Total retirement checks printed for the ERS System 705. 3 deaths: Mary C. Donaldson, widow of Milton, died on 03/05/04, age 85; Robert Lyman, non -duty disability 10/18/96, died on 03/21/04, age 53, wife Janet to receive 100%; Clayton J. Croy, retired on 06/03/78, died 04/12/04, age 89, no surviror: Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Murphy to approve the following requests for Age and Service Retirement: Diane M. Galbavi, Treasury Office, 24 years 9 month service credit, age 46, effective April 10, 2004 Employees Retirement System Regular Meeting of April 22, 2004 page 2 Reuben R. Mylander, Public Service, 8 years service credit, age 87, effective April 17, 2004 Steve E. Anspach, Public Service O&M, 31 years 10 month service credit, age 50 effective April 24, 2004 Angela M. Morgan, District Court (from Deferred), 17 years 2 month service credit, age 47, effective May 15, 2004. Adopted Unanimously It was moved by Trustee Benavides and support by Trustee Murphy to excuse Trustee Meyer. Adopted Unanimously The board was advised of a meeting to be set-up to discuss the hiring of a person to handle some of the administrative tasks on the pending list. Trustee Rhode explained about the International Investment Firms presentations and made the motion, per the sub committees decision by a 2 to 0 vote , to recommend hiring Julius Baer as the International Investment Firm which was supported by Trustee Cunningham. Adopted Unanimously It was moved by Trustee Rhode and supported by Trustee Dedic to authorize Chair Antekeier to be a signer for the boards activities at Northern Trust. Adopted Unanimously The board was informed that medical director bids were coming in Jack Roberts advised the board about a minor child of a deceased retiree who is the beneficiary of his pension and the ramifications of issuing a pension to a minor. Trustee Rhode handed out and discussed the investment report for March. Minutes approved on Glenn Kirk, Sec etary Employees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting May 20, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:36 Present:: Antekeier, Cunningham, Dedic, Meyer, Piloske, Rhode - 6 Absent, Andrews, Benavides, Murphy Others: Gary Gustafson, Glenn Kirk, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Piloske and supported by Trustee Meyer to approve the minutes of April 22, 2004. Adopted Unanimously The Secretary reported: 3 new member(s) 0 reinstatement(s), 1 refund(s), 0 transfers, 5 retired. Total active membership: 755. Refunds made since the last regular meeting amounted to $9,176.57. Retirement allowances paid for the month of April 2004 amounted to $1,103,392.22. Total retirement checks printed for the ERS System 712. 2 deaths: Marguerite Smith, widow of Detmer, died on 04/14/04, age 84: Sara Bennett, wife of Edmond, died on 04/27/04, age 73. Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. It was moved by Trustee Rhode and supported by Trustee Piloske to approve the following requests for Age and Service Retirement: Daniel J. Archey, C&CS, 25 years 1 month service credit, age 55, effective May 22, 2004 Brenda K. Smith, Finance (Treasurer), 15 years 1 month service credit, age 60, effective June 19, 2004 James D. Smiertka, Law, 10 years service credit, age 58, effective May 13, 2004 Adopted Unanimously Employees Retirement System Regular Meeting of May 20, 2004 page 2 It was moved by Trustee Rhode and supported by Trustee Cunningham in conjunction with Dr. Chiodo's report to approve the Non Duty Disability for David Ceccanese Adopted Unanimously It was moved by Trustee Meyer and support by Trustee Dedic to excuse Trustees Andrews, Benavides, Murphy Adopted Unanimously Retirement Analyst Gustafson gave an update on the Duty Disability Income Verification letters. Trustee Rhode informed the board that Cleophus Boyd signed up for health benefits Trustee Rhode stated that only two bids were received for the position of Medical Examiner, neither one were local, one from the University of Michigan and one from Dr. Ernest Chiodo. Bids to be analyzed by both boards sub committees and reported back to the board. It was moved by Trustee Rhode and supported by Trustee Cunningham to hire Mr. Rubley as an outside consultant for 10 to 15 hours per week at $55.00 per hour. Costs to be split with P&F board on joint projects and to be borne by the appropriate board for a specific board work. Contract to run thru 12/31/04. Adopted Unanimously It was moved by Trustee Rhode and supported by Trustee Cunningham to transfer all funds from Fortis to the Index Fund by mid June per George Tarlas recommendation. Adopted Unanimously Trustee Rhode handed out and discussed the investment report for April and also handed out a securities lending report to the board. Minutes approved on Robert Antekeier, Chairperson r 0�, Glenn Kirk, Sec etary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting June 17, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:30 Present:: Andrews, Antekeier, Cunningham, Dedic, Meyer, Murphy, Piloske, Rhode - 8 Absent: Benavides Others: Gary Gustafson, Randy Endsley, Amy Kraus, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Dedic and supported by Trustee Meyer to approve the minutes of May 20, 2004. Adopted Unanimously Dean Johnson and Amy Kraus spoke of the desire of "window people" to purchase back prior years of service utilizing 457 (deferred compensation) funds. The Board indicated that a Special Project sub -committee would be formed to discuss this issue. Secretary's Report. 2 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 755. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of April 2004 amounted $1,113,093.79. Total retirement checks printed for the ERS System 710. 2 deaths: Ada Shotwell, retired 01/04/83, died 05/14/04, age 83, no survivors; Victor Leyrer, retired 03/30/65, died 05/27/04, age 99, no survivors; Domestic relations orders received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. It was moved by Trustee Andrews and supported by Trustee Cunningham to approve the following requests for Age and Service Retirement: James T. Beals, Parks, 30 years 9 month service credit, age 50, effective June 26, 2004 ,,.; � r' Employees Retirement System Regular Meeting of June 17, 2004 page 2 William Burt Burleson, Law, 15 years 4 month service credit, plus 2 years 11 months of credit solely for the purpose of calculating the eligibility date for retirement benefits but not for the purpose of calculating the amount or value of any retirement benefit, age 46 years 9 months, effective August 1, 2004 Krista L. Krause, Magistrate District Court, 20 years 6 month service credit, age 48, effective June 29, 2004 Adopted Unanimously It was moved by Trustee Dedic and supported by Trustee Cunningham to excuse Mayor Benavides Adopted Unanimously Gary Gustafson has accepted a new position in the City. Randy Endsley will be the interim Retirement Analyst. It was moved by Trustee Piloske and supported by Trustee Cunningham to share the cost of a gift for Mr. Gustafson with the Police and Fire Retirement Board. Jack Roberts, interim City Attorney, updated the Board on the status of the witholding of checks payable to beneficiary of Glen Sherman, Kara Sherman. Mr. Roberts indicated he will issue a second letter requesting letters of Guardianship. Trustee Rhode updated the Board on the Fortis Investment Change. All funds will be deposited into Northern Trust. It was moved by Trustee Rhode and supported by Trustee Cunningham to utilize $8,000,000 from the Fortis liquidation to reimburse the City for retiree payroll expenses. Adopted Unanimously It was moved by Trustee Rhode and supported by Trustee Dedic to employ Dr. Victor Roth as the Medical Advisor for the Employee's Retirement System. Adopted Unanimously Trustee Rhode updated the Board on the progress of Doug Rubley acting as consultant to the Board. Trustee Rhode handed out and discussed the investment report for May and also handed out a securities lending report to the board. Employees Retirement System Regular Meeting of June 17, 2004 page 3 Minutes approved on 7- �? 2—d ` Glenn Kirk, Secretary Employees' Retirement System �Iz� �I /&6�- Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor City Hall Lansing, MI July 22, 2004 Thursday, 8:30 a.m. Called to order 8:30 a.m. Adjourned 9:01 a.m. The Board met in regular session and was called to order at 8:30 Present:: Andrews, Benevides, Antekeier, Dedic, Meyer, Murphy, Piloske, Rhode - 8 Absent: Cunningham Others: Randy Endsley, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Meyer and supported by Trustee Murphy to approve the minutes of June 17, 2004. Adopted Unanimously Secretary's Report. 2 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 756. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of June 2004 amounted $1,146,692.97. Total retirement checks printed for the ERS System 711. 3 deaths: John Edwards, retired 02/05/77, died 06/19/04, age 92, no survivor; John Gaydos, retired 08/01/80, died 06/27/04, age 86, no survivors; Mildred VanArtsdalen, widow of William, died 06/17/04. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Meyer and supported by Trustee Piloske to approve the following requests for Age and Service Retirement: James E. Williams, Public Service, 25 years 1 month service credit, age 52, effective June 26, 2004 Adopted Unanimously It was moved by Trustee Meyer and supported by Trustee Piloske to excuse Trustee Cunningham Adopted Unanimously Employees Retirement System Regular Meeting of July 22, 2004 page 2 Trustee Piloske updated the Board on an upcoming MAPERS Conference in Grand Rapids. It was moved by Mayor Benevides and supported by Trustee Piloske to approve Trustee Antekeier's request to attend a conference out of state. Adopted Unanimously Trustee Dedic arrived at 8:40 a.m. Trustee Rhode updated the Board about a group of employees' desires to purchase back service credits utilizing 457 Plan money. Trustee Rhode updated the Board of a subcommittee's determination that this was not a Board issue, it was a City Administration issue. Trustee Rhode issued a Duty Disability Income Verification Policy, explaining the procedures of the City and the responsibilities of the Duty Disability retirees, to the Board members. It was moved by Trustee Meyer and supported by Trustee Andrews to adopt the new Duty Disability Income Verification Policy and that it supersedes all other Duty Disability Income Verification Policies. Adopted Unanimously Trustee Rhode updated the Board on the re-election of Trustee Andrews to a four year term. It was moved by Trustee Rhode and supported by Mayor Benevides to approve new Gabriel, Roeder, Smith & Company actuarial fees in effect for the next year. Jack Roberts updated the Board of the City's receipt of Letters of Authority regarding an issue of a minor child that is a receipient of a pension benefit. The City has released all back payments. Trustee Rhode updated the Board on the Fortis and Putnam changes. Trustee Rhode updated the Board on Doug Rubley's progress towards completing summary plan descriptions for the ERS Members. Trustee Rhode handed out and discussed the investment report for June and also handed out a securities lending report to the board. Employees Retirement System Regular Meeting of July 22, 2004 page 3 Minutes approved —��� `�-jGC��1r✓ �� NN on / Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:30 Present:: Andrews, Antekeier, Cunningham, Dedic, Meyer, Piloske, Rhode - 8 Absent: Benevides, Murphy August 19, 2004 Thursday, 8:30 a.m. Others: Randy Endsley and Tom Korkoske, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Rhode and supported by Trustee Meyer to approve the minutes of July 22, 2004. Adopted Unanimously Secretary's Report. 0 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 754. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of July 2004 amounted $1,152,486.19. Total retirement checks printed for the ERS System 709. 1 death: Barbara Mack, retired 06/28/95, died 07/31/04, age 53, no survivor. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Meyer and supported by Trustee Piloske to approve the following requests for Age and Service Retirement: Delores A. Carrick, Planning and Neighborhood Development, 16 years 1 month service credits, age 49, effective September 14, 2004 Adopted Unanimously It was moved by Trustee Meyer and supported by Trustee Andrews to excuse Mayor Benavides and Trustee Murphy Adopted Unanimously Employees Retirement System Regular Meeting of August 19, 2004 page 2 It was moved by Trustee Meyer and supported by Trustee Rhode to approve payment of 50% of Glenn Kirk's expenses in attending a conference in Nashville. Adopted Unanimously Trustee Rhode updated the Board on the future presentations of three potential Enhanced Index Managers: Barclay, Intech, and State Street. It was moved by Trustee Rhode and supported by Trustee Piloske to approve the transfer of three million dollars ($3,000,000.00) from each of three investment managers for a total of nine million dollars ($9,000,000.00): Invesco, Julius Baer, and Aria[ to Northern Trust Regular Index fund. Adopted Unanimously Trustee Rhode updated the Board on Doug Rubley's progress towards completing an audit of Police and Fire retirees. Trustee Rhode handed out and discussed the investment report for June and also handed out a securities lending report to the board. Minutes approved on 23-0 Robert Antekeier, Chairperson c- z�y�rG Glenn Kirk, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting September 23, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:32 Present:: Andrews, Antekeier, Cunningham, Dedic, Meyer, Murphy, Piloske, Rhode - 8 Absent: Benevides, Meyer Others: Randy Endsley, Finance Department; Margo Vroman, Law Department. Trustee Rhode discussed the events leading to the upcoming selection of a new Enhanced Index Manager. There was a conference call with Asset Consulting. The topic was the consultant's recommendation for a new Enhanced Index Manager. George, from Asset Consulting explained the desired qualities of an Enhanced Index Manager. It was the recommendation of Asset Consulting that fifty percent of the funds that are currently with Northern Trust be transferred to a singular Enhanced Index Manager, Barclay. It was moved by Trustee Piloske and supported by Trustee Cunningham to transfer fifty percent of the funds that exist in Northern Trust's Index Fund to Barclay Enhanced Index Fund. Adopted by the following vote: Unanimously. It was moved by Trustee Dedic and supported by Trustee Cunningham to approve the minutes of August 19, 2004. Adopted Unanimously Secretary's Report. 2 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 752. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of August 2004 amounted $1,151,765.39. Total retirement checks printed for the ERS System 709. 2 deaths: Ada Owens, beneficiary spouse of Martin, retired 10/12/83, died 09/05/04, age 80; Hazel Mautz, retired 05/01/71, died 08/04/04, age 99. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of September 23, 2004 page 2 It was moved by Trustee Meyer and supported by Trustee Andrews to excuse Mayor Benavides and Trustee Meyer. Adopted Unanimously The upcoming MAPERS conference was discussed. Trustee Rhode updated the Board on the Police and Fire Pension Calculation Audit. Trustee Rhode handed out and discussed the August investment report. Meeting adjourned at 9:08 a.m. Minutes approved on /u Robert Antekeier, Chairperson ✓ �/ �� Glenn Kirk, Secretary Employees' Retirement System f i OFFICIAL PROCEEDINGS OF THE BOAR'D' OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting October 21, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:30 Present:: Andrews, Antekeier, Dedic, Meyer, Murphy, Piloske, Rhode - 7 Absent: Benevides, Cunningham Others: Randy Endsley, Finance Department; Jack Roberts, Law Department, Doug Hartson, Dean Johnson, Public Service. It was moved by Trustee Andrews and supported by Trustee Dedic to approve the minutes of September 23, 2004. Adopted Unanimously Secretary's Report. 0 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 752. Refunds made since the last regular meeting amounted to 0. Retirement allowances paid for the month of September, 2004 amounted $1,154,632.93. Total retirement checks printed for the ERS System 710. 2 deaths: Evelyn Dallmann, beneficiary spouse of Herman, retired 06/01/80, died 08/09/04, age 83; Greta Linderman, beneficiary spouse of Kenneth; retired 05/10/80, died 10/12/04, age 83; Ethel Miller, beneficiary spouse of Virgil Childs, retired 12/03/67, died 10/11/04, age 84. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Andrews to approve the following requests for Age and Service Retirements: Martin K. Amon, Public Service, 29 years 3 months service credits, age 50, effective October 23, 2004. Ronald J. Kreinbrink, Public Service, 15 years 2 months service credits, age 59, effective November 6, 2004. /-' /-n` \ Employees Retirement System Regular Meeting of October 21, 2004 page 2 Senga K. Knupp, Parks, 27 years 8 months service credits, age 58, effective November 20, 2004. Kathryn M. Richards, 911, 15 years 8 months service credits, age 49, effective October 5, 2004. Kenneth W. Scott, Parks, 25 years 0 month service credits, age 50, effective October 23, 2004. Adopted Unanimously It was moved by Trustee Antekeier and supported by Trustee Dedic to excuse Trustee Cunningham. Adopted Unanimously Trustee Andrews updated the Board on recent MAPERS conference. She indicated that a Trustee Handbook was available through MAPERS and would be good reference material for new Board Members. Trustee Rhode informed the Board that George Tarlas recommends that Asset Consulting conduct training sessions for all Board Members. Trustee Rhode updated the Board about Doug Hartson, a UAW employee, and his pension calculation. Randy Endsley, Finance Department showed how, after in excess of 24 years of service, a break in service of less than five years, affected his calculation. Jack Roberts indicated to the Board that the application of the Retirement Ordinance allows for one methodology for calculating pensions that involve two separate terms of employment with the City. That is the factor and final average compensation during the first term of employment be calculated and added to the factor and final average compensation during the second term with the City. Mr. Roberts suggested that if the Board wanted to make an exception for this employee that it may cause less unintended circumstances if an ammendment was made through Collective Bargaining channels and not through a change in the Retirement Ordinance. Trustee Rhode stated that the Retirement Office wil continue to look in to this matter. Trustee Rhode updated the Board regarding a letter received by the Board regarding the Medicare B Reimbursement of two retirees. Trustee Rhode explained the current reimbursement policy and how the City does not reimbursement amounts retroactively if the employee fails to submit a copy of their Medicare Card to the Finance Department. There was a discussion and determination by the Board that, because the Medicare Reimbursement is funded by the General Fund, it is not the Retirement Board's authority to deal with this matter. Jack Roberts indicated he would respond, in writing, to the two Employees Retirement System Regular Meeting of October 21, 2004 page 3 retirees. Trustee Piloske requested that he be supplied with business cards for meeting purposes. It was moved by Trustee Dedic and supported by Trustee Murphy to approve the purchase of business cards for Trustee Piloske to be paid out of the Securities Lending Account. Adopted Unanimously Trustee Rhode updated the Board on the selection of a permanent Retirement Analyst. Trustee Rhode explained an upcoming requirement of financial reporting to include the recording a liability for the providing of post -employment health care. It was moved by Trustee Piloske and supported by Trustee Benevides to approve additional fees of up to $3,000.00 to be split with Police and Fire to pay the Board's Actuary to provide the calculation of this liability. Adopted Unanimously Trustee Rhode issued and discussed the Investment Report for September. Minutes approved on .'Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson �'" 1. OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING - EMPLOYEES' RETIREMENT SYSTEM Regular Meeting November 18, 2004 City Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:30 Present:: Andrews, Antekeier, Cunningham, Dedic, Meyer, Murphy, Piloske, Rhode - 8 Absent: Benevides Others: Randy Endsley, Finance Department; Jack Roberts, Law Department; Steven Luciano, Police Department. It was moved by Trustee Andrews and supported by Trustee Dedic to approve the minutes of October 21, 2004. Adopted Unanimously Secretary's Report. 4 new member(s) 0 reinstatement(s), 2 refund(s), 0 transfers, 3 retired. Total active membership: 751. Refunds made since the last regular meeting amounted to $62,786.17. Retirement allowances paid for the month of October, 2004 amounted $1,158,410.51. Total retirement checks printed for the ERS System 711. 2 deaths: Marguerite Bowling, beneficiary spouse of John Jr., retired 07/01/83, died 10/09/04, age 76; Frank W. Perrin, retired 08/01/79, died 10/06/04, age 86, spouse to receive 50%. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Andrews to approve the following requests for Age and Service Retirements: Darlene J. Livengood, Police, 15 years 1 month service credits, age 63, effective January 19, 2005. John R. McComb, Finance, 25 years 4 months service credits, age 55, effective January 15, 2004. Gerald J. Williams, Public Service, 28 years 8 months service credits, age 56, effective November 15, 2004. Employees Retirement System Regular Meeting of November 18, 2004 page 2 David A. Wilson, Management Services, 20 years 0 months service credits, age 51, effective November 13, 2004. Adopted Unanimously It was moved by Trustee Meyer and supported by Trustee Dedic to excuse Trustee Benavides. Adopted Unanimously Trustee Rhode issued the current Travel Policy that had been previously approved by the Board. Discussion ensued. Trustee Rhode indicated that Barclay, a new money manager, needs a resolution authorizing Trustee Antekeier to conduct transactions. It was moved by Trustee Rhode and supported by Trustee Meyer to authorize Trustee Antekeier to conduct transactions with Barclay as a representative of the Retirement System. Adopted Unanimously Captain Steven Luciano, a current Police Department employee, informed the Board of his employment history at the City. He indicated that he was employed from 1981 through 1984 in the 911 Center and was a member of the Employees' Retirement System. Mr. Luciano subsequently left the City in 1984. Mr. Luciano accepted a refund of accumulated contributions from the ERS System. He indicated he was not advised at that time about the Reciprocal Retirement Act. Mr. Luciano returned to the City seven months later, to the Lansing Police Department as a member of the Police and Fire Retirement System. Mr. Luciano has requested that he be able to payback his accumulated contributions, including interest, to the Employees' Retirement System to purchase his service credits from the original three year time period. Discussion ensued. Trustee Rhode recommended that this issue be referred to a sub -committee consisting of Trustees Antekeier, Meyer, and Rhode and that it be tabled until the December meeting. Employees Retirement System Regular Meeting of November 21, 2004 page 3 Trustee Rhode updated the Board on the selection process for a Retirement Analyst. Trustee Rhode issued and discussed the Investment Report for October. Minutes approved on /-� -16 - () T Robert Antekeier, Chairperson ,s Glenn Kirk, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting December 16, 2004 City Council Conference Room Thursday, 8:36 a.m. 10th Floor City Hall Lansing, MI The Board met in regular session and was called to order at 8:36 Present:: Andrews, Antekeier, Benavides, Cunningham, Dedic, Piloske, Rhode - 8 Absent: Meyer, Murphy Others: Randy Endsley, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Dedic and supported by Trustee Andrews to approve the minutes of November 18, 2004. Adopted Unanimously Secretary's Report. 3 new member(s) 0 reinstatement(s), 0 refund(s), 0 transfers, 5 retired. Total active membership: 749. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of November, 2004 amounted $1,168,007.06. Total retirement checks printed for the ERS System 713. 3 deaths: Larry Grissom, retired 12/18/98, died 11/24/04, age 62, spouse to receive 50%; Bertha M. Kenney, beneficiary spouse of Myron E., retired 01/26/64, died 11/23/04, age 102; Sue W. Price, retired 05/24/80, died 11/13/04, age 85. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0 It was moved by Trustee Piloske and supported by Trustee Cunningham to approve the following requests for Age and Service Retirements: Carolyn S. Cook, 911, 16 years 11 months service credits, age 66, effective December 16, 2004. Walter L. Funches, Public Service, 15 years 10 months service credits, age 66, effective November 01, 2004. Melvin C. Ott, Planning & Neighborhood Development, 20 years 0 months service credits, age 59, effective January 15, 2005. Employees Retirement System Regular Meeting of December 16, 2004 page 2 Adopted Unanimously It was moved by Trustee Dedic and supported by Trustee Benavides to excuse Trustee Meyer and Murphy. Adopted Unanimously Trustee Antekeier discussed his recent attendance to the International Conference. From a previous meeting's discussion, Doug Hartson's pension calculation was referred to a subcommittee consisting of Trustees Dedic, Cunningham, and Andrews. Trustee Rhode provided the Board with a subcommittee's recommendation to deny Mr. Luciano's request to purchase service credits. A copy of the subcommittee's report is attached with the minutes. It was moved by Trustee Dedic and supported by Trustee Benavides to approve the Law Department to obtain outside legal assistance regarding Mr. Luciano's request. It was moved by Trustee Andrews and supported by Trustee Cunningham to approve the proposed 2005 meeting dates. Trustee Rhode issued and discussed the Investment Report for November. Minutes approved on Z�C,t/ dbL Robert Antekeier, Chairperson 9-, �� Glenn Kirk, ecretary Employees' Retirement System CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM (ERS) BOARD MEMBER ELECTION RULES ARTICLE 1 - BOARD CREATION AND FUNCTION City Ordinance - Section 26-4 "There is hereby created a Board of Trustees, in whom is vested the general administration, management, and responsibility for the proper operation of the retirement system and for the interpreting and making effective the provisions of this chapter." The Ordinance provides in Section 26-5 that "The Board of Trustees shall consist of nine (9) Trustees" as follows: 1) The Mayor 2) A member of the City Council to be selected by and serve at, the pleasure of the City Council 3) The City Treasurer 4) The City Personnel Director 5) Three (3) members of the retirement system to be elected by the members of the system under such rules and regulations as may time to time be adopted by the Board, except that no more than one such elected member shall be from any one city department. 6) The Mayor shall appoint a citizen, who is a resident of the City, who is not an employee of the City and who is not eligible to receive benefits payable by the retirement system. 7) The Mayor shall appoint a retiree of the City who is receiving on ERS pension and who is a resident of the City. The regular term of office for such elected member Trustees and appointed Citizen and Retiree trustees shall be a period of four (4) years. ARTICLE II - GENERAL ELECTION RULES Elections to be Held: Time, Place and Method Section (1) - If the number of candidates with valid petitions does not exceed twice the number of Trustee positions to be elected, a primary election shall not be held and the candidates shall be deemed to have been nominated for the general election. Section (2) - All elections shall be held at such locations as are determined by the Retirement Office. Poll shall be open at such times as are determined by the Retirement Office. Section (3) - Ballot boxes and paper ballots shall be used in all elections Section (4) - City Departments referred to in Section 26-5(a) (5) of the Employee's Retirement System Ordinance are hereby determine to be as the following: A. Public Service Department B. Parks and Recreation Department C. All Departments except the two mentioned above shall be grouped into one Department to be known as the City Hall Department - Who may Vote Section (5) - Only active members of the Employee Retirement System who are currently employed by the City shall be permitted to vote for the Trustees of the Retirement System. Each Department's employees can only vote for its own member. ARTICLE III - NOMINATING PETITIONS - Filing Nominating Petitions Section (1) - Nominating petitions shall be received by the City's Retirement Office until 4:00 p.m. on the second Tuesday in May. The Retirement Office shall advise the appropriate departments by written notification of the nominating petition requirements at least 30 days prior to the filing deadline. This written notification shall be posted in as many locations as necessary within the departments to provide for inspection by all departmental employees. Section (2) - All nominating petitions must be signed by no less than 25 nor more the 50 members of the retirement system. Section (3) - Nominating petitions shall be furnished by the Retirement Office and signed by the candidate. - Audit of Nominating Signatures Section (4) The Retirement Office shall reviewed the petition signatures and compare to active membership rolls and shall invalidate signatures of persons who are not active members.. 2 A member of the retirement system may not sign petitions for more than the number of positions open. In the event a member's signature appears on more than the number of petitions allowed, the signature shall be invalidated on all applicable petitions. When the comparison is completed, the eligible candidates shall be certified for the upcoming election. ARTICLE IV — PREPARATION OF THE BALLOT Section (1) - Each candidate whose name appears on the ballot shall be accompanied by the name of the department in which he/she is employed. Section (2) - The Retirement Office may select to conduct the election at City Hall and other appropriate work sites. At all election locations, the Retirement Office will appoint persons to act as election inspectors. ARTICLE V - BALLOTING PROCEDURES Section (1) - The Retirement Office shall prepare numbered ballots and deliver them to the election inspectors. Each election location shall use ballot boxes which will be under the custody and direction of the election inspectors. These inspectors shall require that all members sign a poll list prior to receiving a ballot. All ballots must be deposited in the ballot box. Section (2) - After the election has been completed, the election inspectors will deliver the ballots to the Retirement Office who shall count the number of votes cast and make a written record of the results of the election to the Board of Directors. ARTICLE VI - ABSENTEE BALLOTS The Retirement Office shall have printed a sufficient number of absentee ballots and shall furnish these to qualified members who may be unable to vote during the election period due to illness and being absent from the City. The members name shall be removed from the poll list at the time an absentee ballot is furnished. The absentee ballot shall be returned to the retirement office no later than 5:00. P M. on the Friday preceding the election. ARTICLE VII - SELECTION OF TRUSTEE - Selection of Successful Candidate for Nomination Section (1) - After the votes are recorded and the totals are verified, the Retirement Office shall certify the results of the election to the Secretary of the Retirement System who shall notify all candidates to inform them of who was received the most votes. 3 Section (2) - The nominee receiving the largest number of votes shall be elected to the Trustee position. In the event that the number of nominees equals or is less than the number of vacancies to be filled, no election shall be held and such nominees shall be declared elected to the Board. Tie Votes Section (3) - In the event of a tie vote at the election, the Board of Trustee shall conduct interviews with the candidates to determine which one will be appointed to the open position. 0