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HomeMy WebLinkAbout2005 Employee's Retirement System Board MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING - EMPLOYEES' RETIREMENT SYSTEM Regular Meeting January 20, 2005 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, Benavides, Cunningham, Dedic, Meyer, Piloske, Rhode - 8 Absent: Murphy Others: Randy Endsley, Finance Department; Karen E. Williams, Finance Department; Jack Roberts, Law Department; Dean Johnson, Amy Kraus, Finance Department. It was moved by Trustee Rhode and supported by Trustee Andrews to elect Trustee Antekeier as Chairman and Trustee Piloske as Vice Chairman. Adopted by the following vote: Unanimously It was moved by Trustee Dedic and supported by Trustee Cunningham to accept the minutes as corrected with Carolyn Cooks's age at 48. Adopted by the following vote: Unanimously Trustee Rhode introduced Karen E. Williams as the new retirement analyst. Request to Purchase Service Credits for Window People was discussed. Trustee Cunningham reported that the Window People situation has been discussed with the Mayor, but it is still under discussion. Amy Kraus discussed the lack of process. There was discussion about administrative versus Board responsibilities. Secretary's Report. 4 new members(s), 0 reinstatements(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 753. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of December, 2004 amounted to $1,168,007.06. Total retirement checks printed for the ERS System 717. 1 death: Ida Page, retired 10/5/85, died 12/28/04, age 84. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of December 16, 2004 page 2 It was moved by Piloske and supported by Trustee Dedic to approve the following requests for Age and Service Retirements: Tadeusz Chruscielski, Public Service, 30 service credits, age 56, effective February 7, 2005, Gary Brydges, Building Safety and Development, 23 years 1 month service credits, age 60, effective February 15, 2005. Paul G. Hartwig, Public Service, 25 years 4 months service credits, age 50, effective January 21, 2005. Adopted Unanimously It was moved by Trustee Benavides and supported by Trustee Cunningham to excuse Trustee Murphy. Adopted Unanimously Trustee Piloske informed the Board that he would attend the MAPERS one day seminar, February 24, in Ann Arbor, Michigan. Trustee Rhode informed the Board that the subcommitte report is still pending on Mr. Doug Hartson-Pension calculation. Different alternative are being considered to give Mr. Hartson an equitable pension. Trustee Dedic informed the Board of a subcommitte reports regarding different UAW survivorship tables for females and males. Trustee Dedic believes the differences may be discriminatory. The board discussed male -orientated versus gender neutral tables. The board discussed the possiblity on changing the tables. It was moved by Trustee Dedic and supported by Trustee Andrews to request a subcommittee report to make recommendations to administration. Trustee Rhode informed the Board of Forstman Leff invitation to Board for dinner on February 14. Trustee Rhode gave an Update on the Police and Fire Audit. Trustee Rhode recommended that the Board hire Doug Rubley to conduct a random sample audit of the ERS system. Jack Roberts gave a legal opinion and history on under/over payments. to perform for ERS system. It was moved by Trustee Rhode and supported by Trustee Employees Retirement System Regular Meeting of December 16, 2004 page 3 Cunningham to hire Doug Rubley at $55.00/hour to perform a random sample audit of the most recent years of the ERS system. Adopted Unanimously. Mr. Doug Rubley will perform Ordinance Recodification after Audits. The City-wide Audit maybe in February. Mr. Brad Armstrong of Gabriel, Roeder, Smith gave the December 31, 2003 Actuarial Report. The Board discussed the prefunding of health care. Mr. Armstrong believe a separate trust should be established to pay post retirement health care benefits. Trustee Rhode issued and discussed the Investment Report for January. Trustee Meyer spoke about due diligence with Forstman Leff and Ariel Capital. Trustee Meyer met with compliance officers and was impressed. The meeting was adjourned at 10:16 a.m. Minutes approved on ;. —/ i —vs- Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING ;. EMPLOYEES' RETIREMENT SYSTEM Regular Meeting February 17, 2005 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 8:34 Present:: Andrews, Antekeier, Benavides, Cunningham, Dedic, Meyer, Murphy, Piloske, Rhode - 9 Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Dean Johnson, Amy Kraus, Finance Department; Captain Steven Luciano; Doug Hartson It was moved by Trustee Dedic and supported by Trustee Andrews to accept the minutes as corrected noting that Brad Armstrong, Gabriel, Roeder, Smith and Company was making a correction to the Actuary Report. Adopted by the following vote: Unanimously Secretary's Report. 3 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 5 retired. Total active membership: 756. Refunds made since the last regular meeting amounted to $261.43. Retirement allowances paid for the month of January, 2005 amounted to $1,196,510.03. Total retirement checks printed for the ERS System: 718. 0 deaths. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Rhode gave a report of the Michigan Government Finance Officers Association Winter 2005 Conference. Trustee Rhode and Karen E. Williams attended the 2-day sessions sponsored by MERS and held at their Lansing Office. The conference featured sessions on Policies and Procedures for Retirement Plans and a Mock Board Meeting. The conference was very informative. Trustee Piloske informed the Board that he would attend the MAPERS one day conference, February 24, in Ann Arbor, Michigan. Trustee Rhode updated the Board on Mr. Doug Hartson-Pension calculation. The issue was referred to a subcommittee which has recommended that the City Ordinance be revised to allow for a non -break of service if a vested employee re-employs within five years. Employees Retirement System Regular Meeting of February 17, 2005 page 2 The board discussed the financial difference in Mr. Hartson's pension if there was not a change in the city ordinance. It was moved by Trustee Benavides and supported by Trustee Rhode to recommend to the City Council to revise the City Ordinance. This revision would allow a vested employee, who leaves City employment but returns within five years and vests for a second term of service, to combine both periods of employment for pension calculations. Adopted Unanimously Trustee Rhode updated the Board on Captain Steven Luciano. The subcommittee originally recommended that Captain Luciano not be allowed to pay back his 911 contributions to ERS, since he was never vested in the ERS system and was repaid his contributions. Jack Roberts, issued a written legal opinion on the request. He summarized that there is an exclusion in the Ordinance that states that a Police and Fire member cannot purchase ERS service and return to membership in the ERS System. Captain Luciano addressed the Board in regards to the City not allowing him to keep his money in the system. His premise is that he was not given an opportunity to stay in'the ERS system and was not advised of the repayment option when returning to the City. Trustee Dedic asked if there was a special circumstance that would allow a waiver by asking the City Council to revise the Ordinance. Jack Roberts clarified that the special circumstance would only apply to an ERS employee returning to the ERS system. Trustee Antekeier asked that Captain Luciano request be referred back to the subcommittee. Trustee Rhode updated the Board on the Annual Distribution of Investment to cover upcoming cash flow. It was moved by Trustee Rhode and supported by Trustee Benavides to take out $4 million dollars from Northern Trust to cover pension expenditures. Adopted Unanimously Trustee Rhode informed the Board of the importance of an Experience Study. A Gabriel, Roeder, Smith Experience Study would cost appoximately $12,000 to $15,000. There should be an experience study every five years. Employees Retirement System Regular Meeting of February 17, 2005 page 3 It was moved by Trustee Rhode and supported by Trustee Piloske to have Gabriel, Roeder, Smith proceed with a Experience Study. Adopted Unanimously Trustee Rhode updated the Board on a Policy on Experience Study. Jack Roberts had informed her that the ERS system already has a policy, so it is not needed for ERS. The Request to Purchase Service Credits for Window People was discussed. Trustee Cunningham reported that the Window People situation has been discussed with the Mayor. A report will be issued at the next meeting. Amy Kraus reminded the Board that the time being requested was worked and earned. They would have earned service credit if they stayed in the ERS systems. Trustee Rhode gave an update on the ERS Audit. The audit performed showed no errors for first six months of 2004. Doug Rubley will continue with a sample audit from 2003. Trustee Rhode updated the Board that Asset Consulting is conducting a manager's search to replace Loomis Saales. The external auditors will be at the next meeting. The board discussed the visit to St. Louis and possible dates available in April. Trustee Rhode will have dates available at next meeting. The meeting was adjourned at 9:25 a.m. Minutes approved on3-- ! -7 ` 0 � IX&4 A� - Robert Antekeier, Chairperson Glenn Kirk, Secretary Employees' Retirement System ;EC['-:_IV'ED OFFICIAL PROCEEDINGS OF THE BOA, 33 TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting March 17, 2005 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 8:34 Present: Andrews, Antekeier, Ben avides(9:02), Cunningham (8:40), Dedic, Meyer (9:25), Murphy, Piloske, Rhode - 9 Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Dean Johnson; Amy Kraus, Finance Department; Captain Steven Luciano; Monica Delgado It was moved by Trustee Andrews and supported by Trustee Dedic to accept the minutes of the Regular Meeting February 17, 2005. Adopted by the following vote: Unanimously It was moved by Trustee Rhode and supported by Trustee Andrews to accept the minutes of the Joint Police & Fire and ERS Meetings of February 15, 2005. Adopted by the following vote: Unanimously Trustee Cunningham updated the board regarding the Request to Purchase Service Credits for Window people. Trustee Cunningham discussed a letter signed by Mayor Benavides that he has reviewed the request and he has instructed the Personnel Department to work toward drafting an ordinance change. Trustee Antekeier addressed Captain Steven Luciano's request to purchase service credits. The subcommittee met and concurred with the Jack Roberts legal opinion. Jack Roberts' indicated that a member of the Police and Fire Retirement Board cannot be a member of the ERS system, therefore, Mr. Luciano could not purchase time. Mr. Roberts also indicated that the Reciprocal Retirement Act does not apply to this situation. The committee recommended denial of the request. Captain Luciano addressed the Board and stated that he believed that there are other employees who are members of the Police and Fire and Employee Retirement systems. Employees Retirement System Regular Meeting of March 17, 2005 page 2 Trustee Rhode recommended that she meet with Doug Rubley and Jack Roberts to discuss the Reciprocal Retirement Act and its impact of various employees. Trustee Antekeier discussed that the Captain Luciano situation will be reviewed again after Trustee Rhode's meeting with Doug Rubley and Jack Roberts. Michael L. Davidson, Assurance Manager, PriceWaterHouseCoopers presented the City of Audit. Mr. Davidson addressed the scope of services and results of the audit as it pertains to the ERS fund. Mr. Davidson discussed a summary of the financial results of the retirement plans. No material misstatements of illegal acts were noted. The audit (including the retirement plan statements) received a clean opinion. Monica Delgado, District Court was referred to the City Medical Director for an evaluation of her Non -Duty Disability request. Secretary's Report. 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 759. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of February, 2005 amounted to $1,205,532.39. Total retirement checks printed for the ERS System: 720. 1 death. Mr. Earl Austin, retired 3/8/01, died, 2/15/05, age 56, no survivors. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Benavides and supported by Trustee Dedic to approve the following requests for Age and Service Retirement: Terry L. Becker, Parks, 29 years, 4 month service credit, Age 50, effective April 3, 2005. Verna Bell, District Court, 26 years 9 month service credit, age 69, effective April 1, 2005. Charles Dart, Police 911, 27 years , 4 month service credit, age 53, effective March 27, 2005. Clement A. Hufnagel, Treasury, 1 year, 3 month service credit for the purpose of calculating retirement benefits, age 68, effective April 2, 2005. (Mr. Hufnagel was hired March 6, 1995 into the defined contribution system.) Adopted Unanimously Employees Retirement System Regular Meeting of March 17, 2005 page 3 It was moved by Trustee Dedic and supported by Trustee Cunningham to excuse Trustee Murphy. Adopted Unanimously The Board discussed the upcoming MAPERS 2005 Spring Conference, May 15-17, 2005, in Mt. Pleasant, Michigan. The deadline to get reservations to the Retirement Office was set for April 15, 2005. Jack Roberts made a formal request to attend the MAPERS 2005 Spring Conference It was moved by Trustee Rhode and supported by Trustee Andrews for Mr. Roberts to attend the conference and that the ERS Board and the Police & Fire Retirement Board would split the cost. Adopted Unanimously Trustee Rhode updated the Board on the ERS Benefit Audit. The Audit contained no further errors. Trustee Rhode recommended to the Board to discontinue the audit for additional years. Trustee Rhode updated the Board that Doug Rubley's next project will be the recodification of the ordinance. Trustee Rhode discussed the dates for the Asset Consulting Due Diligence Visit in St. Louis. Three dates were suggested: April 13-14, April 26-27, May 3-4. It was moved by Trustee Rhode and supported by Trustee Dedic to permit Trustee Antekeier to attend the Asset Consulting Visit, and to also allow any board member wishing to attend the Asset Consulting Visit. Adopted Unanimously Karen E. Williams, Finance Department, reported to the Board that the Actuary prices for Eligible Domestic Relations Orders (EDROs) prices have been increased. The new rate for Certification of EDROs is $500 and the new rate for EDRO calculation of Alternative Payee is $700. Trustee Rhode updated the Board that Jack Roberts is working on Mr. Doug Hartson's pension calculation situation. Trustee Rhode suggested that she will work with Karen E. Williams regarding the Retirement web site. Trustee Rhode gave the Investment Report for February 2005. The meeting was adjourned at 9:45 a.m. Minutes approved on ` Glenn Kirk, Secretary Employees' Retirement System � e,-� x�� Robert Antekeier, Chairperson 7. �;:ISt;-n OFFICIAL PROCEEDINGS OF THE BOARD 00- ,, TRUSTEES � u?�i,1. 10 F�., 4: -3 CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting April 21, 2005 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 8:33. Present: Andrews, Antekeier, Cunningham (8:36), Dedic, Meyer, Piloske, Rhode - 7 Absent: Benavides, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Mrs. Brenda Ballard It was moved by Trustee Andrews and supported by Trustee Meyer to accept the minutes of the Regular Meeting March 17, 2005. Adopted by the following vote: Unanimously Mrs. Brenda Ballard addressed the Board regarding her request to apply for an Equating Pension. The Board was provided with a letter and supporting documents detailing Mrs. Ballard's request. Mrs. Ballard retired in 1993 and believed that she was not informed that she was eligible to receive an Equating Pension. Trustee Rhode explained the Equating Pension Option to the Board. The equated pension would provide equalized payments throughout the retirees life. There would be an artificially high pension for retirees under age 65. The pension amount would decrease at age 65 and combine with Social Security to remain equal to previous pension payments. Jack Roberts suggested that the Administration meet with Mrs. Ballard and provide her with calculations. Trustee Antekeier asked that Trustee Rhode and Karen Williams meet with Mrs. Ballard. Employees Retirement System Regular Meeting of April 21, 2005 page 2 Secretary's Report. 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total active membership: 758. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of March, 2005 amounted to $1,210,650.96. Total retirement checks printed for the ERS System: 722. 4 deaths. Mahmoud Kalla, retired 2/15/85, died 2/12/05, 85, spouse will receive 100%. Sam R. Clay, retired 1/3/86, died 2/18/05, age 83, spouse will receive 50%. Alvan P. Knot, retired 5/24/00, died, 3/26/05, age 55, spouse will receive 100%. Beatrice Zimmerman, widow of Clarence, died on 4/5/05, age 89. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Rhode updated the Board regarding Monica Delgado's request for non -duty disability retirement. The disability subcommittee discovered that Ms. Delgado did not go through the steps needed to be referred to the Medical Director. Her referral to the doctor has been delayed indefinitely. It was moved by Trustee Dedic and supported by Trustee Cunningham to excuse Trustee Benavides and Trustee Murphy. Adopted Unanimously Trustee Rhode updated the Board regarding the Due Diligence Meeting to Asset Consulting in St. Louis, May 2-3. Board members who were attending received itineraries for their visit. Karen Williams updated the Board regarding confirmation for the Spring MAPERS conference, May 15-17. Trustee Rhode updated the Board regarding Captain Steven Luciano's request to purchase service credits. Trustee Rhode met with Doug Rubley regarding the request. Trustee Rhode, Doug Rubley and Jack Roberts will meet to further discuss Captain Luciano's request. Trustee Rhode reported to the Board that Genesis Advisors had contacted her and made a request to meet with the Board. Genesis Advisor are a consulting service and would like to present their services. The Board discussed that they were pleased with the work of present advisors. Jack Roberts updated the Board that the work on Mr. Doug Hartson's pension calculation situation was close to completion, but not yet solved. The union would need to sign off on changes. Jack Roberts indicated he would have a report, possibly by next month. Trustee Rhode gave the Investment Report for March 2005. Employees Retirement System Regular Meeting of April 21, 2005 page 3 The meeting was adjourned at 9:15 a.m. Minutes approved on - Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson j',' J OFFICIAL PROCEEDINGS OF THE BOARD,.OF,,,�,. TRUSTEES 3 CITY OF LANSING ` EMPLOYEES' RETIREMENT SYSTEM Regular Meeting May 19, 2005 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 (8:49), Cunningham, Dedic, Piloske, Rhode - 7 Absent: Meyer, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department It was moved by Trustee Piloske and supported by Trustee Andrews to accept the minutes of the Regular Meeting April 21, 2005 with amendments. Adopted by the following vote: Unanimously It was moved by Trustee Piloske and supported by Trustee Andrews to accept the minutes of the Joint Police and Fire and ERS Retirement Meeting of April 21, 2005. Adopted by the following vote: Unanimously Trustee Rhode updated the Board regarding Mrs. Brenda Ballard's request to apply for an Equating Pension. Trustee Rhode, Karen Williams and Jack Roberts met with Mrs. Ballard and gave her examples of equating pension calculations. Her issues were resolved and she understood how the equating pension would affect her. Mrs. Ballard decided to keep her current pension. Secretary's Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 760. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of April, 2005 amounted to $1'216,221.67. Total retirement checks printed for the ERS System: 721. 4 deaths. Faith Shiek-Reed, EDRO of Glenn Sherman, died, 3/23/05, age 55. Irma Etherton, retired, 11/22/1975. died, 4/10/2005, age 89, no survivor. Anna Dingman, retired 10/06/90, died, 4/15/05, age 79, no survivor. Darrell L. Stratton, retired 7/08/00, died, 05/05/05, age 63, no survivor. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of May 19, 2005 page 2 It was moved by Trustee Cunningham and supported by Trustee Andrews to approve the following request for Age and Service Retirement: Pamela S. Ruppert, 911(Police) (from Deferred), 16 years, 11 month service credit, Age 48, effective August 1, 2005. Adopted Unanimously Trustee Rhode updated the Board regarding Monica Delgado's request for non -duty disability retirement. Trustee Rhode suggested that the disability subcommittee meet with Monica Delgado to explain the requirements for non -duty disability. It was moved by Trustee Benevides and supported by Trustee Cunningham to excuse Trustee Meyer and Trustee Murphy. Adopted Unanimously Several Board members attended MAPERS Conference, May 15-17 and found the meeting informative. The Board discussed updating the Travel Policy to an Education Policy that includes travel. Also, the Board discussed creating a Health Care Reporting policy. Trustee Antekeier updated the board on the St. Louis Due Diligence Trip. Three Bond managers were interviewed. The Board discussed waiting until June to discuss Bond Manager Replacement at the Joint meeting with Asset Consulting. Trustee Rhode updated the Board regarding the proposed Universal Buy -in of Time. This Proposal Buy -In would be a permanent change and would allow an employee to purchase up to thee years of service, using a model similar to miliary pay. The employee will not get health care for the years purchased. Trustee Rhode updated the Board on the Proposed (Draft) of the Targeted Retirement Incentive. There is nothing in official yet. Trustee Rhode updated the Board on the pending items. Mr. Doug Rubley will start working on the Ordinance Recodification. Trustee Rhode and Karen Williams will proceed on creating a Retirement Web site. There was no update on Mr. Doug Hartson's pension calculations. Trustee Rhode updated the Board regarding Captain Steven Luciano's request to purchase service credits. Trustee Rhode, Doug Rubley and Jack Roberts will meet to further discuss the Reciprocal Retirement act as it relates to Captain Luciano's request. Employees Retirement System Regular Meeting of May 19, 2005 page 3 Trustee Rhode gave the Investment Report for April 2005. Trustee Antekeier requested a section that will show growth of funds over the previous month. The meeting was adjourned at 9:22 a.m. Minutes approved on 6- 23 a5 Robert Antekeier, Chairperson Glenn Kirk, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARI)h �o " +,: � TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting June 23, 2005 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 8:49. Present: Antekeier, Cunningham, Dedic (8:49), Piloske, Rhode - 5 Absent: Andrews, Benavides, Meyer, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department, Glenn Kirk, Finance Department. It was moved by Trustee Cunningham and supported by Trustee Dedic to accept the minutes of the Regular Meeting May 19, 2005. Adopted by the following vote: Unanimously Secretary's Report. 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 760. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of May, 2005 amounted to $1,215,981.42. Total retirement checks printed for the ERS System: 723. 1 death. Richard Thomas, retired, 10/09/93, died 05/14/05, age 66, daughter, Jessica 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 Cunningham to approve the following request for Age and Service Retirement: Maria Patino, 911(Police) Department, 25 years, 10 month service credit, Age 43, effective June 20, 2005. Adopted Unanimously It was moved by Trustee Dedic and supported by Trustee Rhode to excuse Trustee Meyer and Trustee Murphy. Adopted Unanimously Employees Retirement System Regular Meeting of June 23, 2005 page 2 Trustee Piloske discussed attending the One Day MAPERS Conference, July 18th. Trustee Rhode updated the Board on the Proposed (Draft) of the Targeted Retirement Incentive. The Committee of the Whole has the draft. There is nothing official yet. The Board discussed updating the Retirement Systems Request for Refund of Accumulated Contributions form. The Board discussed including a section where the retirement analyst could indicate that the provisions and implications of the request were discussed. Trustee Rhode will update the form and bring it to the Board for review. Trustee Rhode updated the Board on the pending items. Mr. Doug Rubley is making a list of grey areas that need classification. Mr. Jack Roberts is also making a list of grey areas. There was no update on Mr. Doug Hartson's pension calculations. Trustee Rhode updated the Board regarding Captain Steven Luciano's request to purchase service credits. A report will be made to the Board next month regarding a resolution for Captain Luciano. Trustee Rhode presented a clarification of the travel policy. The updated policy will include a preamble It was moved by Trustee Rhode and supported by Trustee Cunningham to adopt the preamble to the Board's Travel Policy and that it supersedes all other policies. This policy shall be attached to the minutes and also filed in the policy book with the date of this motion of adoption shown thereon. Adopted by the following vote: Unanimously The Board discussed the International Conference for retirement systems that is generally held in November. The current policy would allow two members to go to the conference. If additional members wished to go, the Board must vote to allow additional members to attend. It was moved by Trustee Dedic and supported by Trustee Piloske to allow Trustee Antekeier to attend the International conference. Adopted by the following vote: Unanimously It was moved by Trustee Piloske and supported by Trustee Cunningham to adjourned the meeting. Adopted by the following vote: Unanimously The meeting was adjourned at 9:25 a.m. Employees Retirement System Regular Meeting of June 23, 2005 page 3 Minutes approved on Robert Antekeier, Chairperson Glenn Kirk, Secretary Employees' Retirement System City of Lansing Retirement System Travel Policy - Clarification Adopted June 2005 This Amendment shall be considered a preamble to the Board's travel policy The Board is committed to proper due diligence in all areas of the Board's responsibilities. To this end, the proper training of Board Members is of great importance. Trustees will be allowed to travel on Board business for two important reasons. The first is to obtain information regarding our investment managers and other professionals who assist in the operations of the pension funds. The second reason is to receive training and skills which will assist the Trustee in conducting his or her duties. The cost for any Trustee travel will be paid from the Board's Securities Lending account not from assets held in Trust for employees and retirees. The Board's travel policy has included limits on the number and cost of trips allowed by any Trustee for any given year. The Board believes it is in the Retirement Members' best interest to have the most informed and skilled Board possible. 1�vcs�..�•si � � IZ. S G %-3I� S � /'} do(a�Q OFFICIAL PROCEEDINGS OF THE BOARD OF Jl1. TRUSTEES , CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting July 21, 2005 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 8:35. Present: Andrews, Antekeier, Benavides, (8:57), Dedic, Meyer (8:47), Murphy (8:37), Piloske, Rhode - 7. Absent: Cunningham Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Doug Hartson. It was moved by Trustee Rhode and supported by Trustee Dedic to accept the minutes with corrections of the Regular Meeting June 23, 2005. Adopted by the following vote: Unanimously It was moved by Trustee Piloske and supported by Trustee Dedic to accept the minutes of the Joint Meeting of June 21, 2005. Adopted by the following vote: Unanimously. Mr. Doug Hartson asked for a status of his pension calculation request. The Board has recommended an ordinance change to address Mr. Hartson's situation. Jack Roberts indicated that the request needs union approval before it can go before City Council. Secretary's Report. 1 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 1 retired. Total active membership: 760. Refunds made since the last regular meeting amounted to $3,605.55. Retirement allowances paid for the month of June, 2005 amounted to $1,220,690.78. Total retirement checks printed for the ERS System: 724. 0 deaths. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Antekeier inquired regarding the Refund of Accumulated Contributions for Laura Metz. Trustee Rhode updated the Board that Ms. Metz signed a form indicating that she understood the implications of receiving a refund. Employees Retirement System Regular Meeting of July 21, 2005 page 2 It was moved by Trustee Dedic and supported by Trustee Meyer to approve the following request for Age and Service Retirement: Jacquelyn Beeson, 911 (Police) Department, 20 years, 3 months service credit, age, 45, effective July 6. 2005. Robert L. Hester, Jr., Human Relations & Community Service Department, 20 years, 7 months service credit, age 59, effective July 15, 2005. John F. Rehagen, District Court, 20 years, 8 months service credit, age 52, effective July 16, 2005. Adopted Unanimously The Board discussed the retirement request of Robert L. Hester. He insisted on leaving before the Targeted Retirement Incentive was approved. Trustee Rhode updated the Board that Mr. Hester's union representative and his department head talked to Mr. Hester regarding his decision. Trustee Meyers indicated that a report should be filed regarding Mr. Hester. It was moved by Trustee Meyer and supported by Trustee Andrews to excuse Trustee Benavides and Trustee Cunningham. Adopted Unanimously Karen Williams updated the Board on the Mapers Fall Conference, September 25-27, 2005 at the Grand Traverse Resort. Trustee Meyer disclosed that he would like to attend the conference. Jack Roberts asked to attend the MAPERS conference. It was moved by Trustee Rhode and supported by Trustee Murphy to allow Jack Roberts to attend the MAPERS conference and to pay half the cost. Adopted Unanimously Trustee Piloske and Trustee Dedic attended a One Day Mapers conference and found the information very informative. Trustee Rhode updated the Board on the Targeted Retirement Incentive. The City provides 14% of base salary plus 9 months. Employees have to leave by September 14. Trustee Rhode provided and discussed the actuary report for the Incentive. The City Council asked for an advisory vote. Employees Retirement System Regular Meeting of July 21, 2005 page 3 It was moved by Trustee Piloske and supported by Trustee Murphy to indicate to Council that the Board has received the Actuary Report of the Targeted Retirement Incentive and found it fiduciarily sound and responsible. Adopted by the following vote: Unanimously A copy of the Gabriel Roeder Smith Actuary Report regarding the Targeted Retirement Incentive will be attached to the Official Minutes. Trustee Rhode updated the Board on the new form for the Request for Refund of Accumulated Contributions form. It will be brought to the Board for review. Trustee Rhode updated the Board regarding the new Core Fixed Asset Managers, PIMCO. The contracts were referred to Jack Roberts for review. Gabriel Roeder Smith is close on health care study. The Board may see a draft within the next few months. The Board discussed elections to replace Trustees that are leaving the Board. Trustee Andrews announced that this will be her last meeting. Trustee Rhode will update the Board on election process. Trustee Rhode distributed and discussed the Investment Report. The meeting was adjourned at 9:49 a.m. Minutes approved on 0 --10 -- 2-0D5 Robert Antekeier, Chairperson Glenn Kirk, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOAR, P, ,� I:;�a '=� 33 TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting August 18, 2005 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 8:35. Present: Antekeier, Benavides (8:40 ), Cunningham, Piloske, Rhode - 5 Absent: Dedic, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Doug Hartson, Public Service Department; Amy Kraus, Finance Department; Captain Steven Luciano, Police Department. It was moved by Trustee Meyer and supported by Trustee Cunningham to accept the minutes of the Regular Meeting July 21, 2005. Adopted by the following vote: Unanimously Mr. Doug Hartson inquired into the status of his request to have one pension calculation for his years of service. Trustee Rhode responded that the Union needed to sign off and then it would be taken up by the City Council. Ms. Amy Kraus reminded the Board regarding the Window People and about buying back time left on the table. Secretary's Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total active membership: 761. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of July, 2005 amounted to $1,222,672.77. Total retirement checks printed for the ERS System: 722. 2 deaths. Helen Stanton, retired, 12/31/81, died 05/31/05, age 87, no survivors; Katherine Graft, widow of retiree, died 7/9/05, age 88. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Mary Lou Andrews has officially retired. Trustee Rhode has invited Trustee Andrews and Trustee Bruce Lankheet of the Police and Fire Retirement Board to a meeting next month for a reception. Trustee Meyer suggested a breakfast meeting at the Michigan Retailers Association. Employees Retirement System Regular Meeting of August 18, 2005 page 2 Trustee Rhode updated the board regarding a replacement for the remainder of Trustee Andrews term. Also, an election needs to be held for Trustee Antekeier. Nomination petitions and election will probably be held in October. The vacancy for Trustee Andrews will be filled with an employee from a Department other than Public Service or Parks. It was moved by Trustee Meyer and supported by Trustee Benavides to approve the following request for Age and Service Retirement: William Maul, Central Garage, .33 years, 3 months service credit, age 51, effective July 30, 2005. Mary Lou Andrews, Finance (Assessor's Office), 29 years, 11 months, service credit, age 51, effective July 28, 2005. Lee Ann McDurmon, Finance (Assessor's Office), 30 years, 10 months service credit, age 48, effective July 30, 2005. Robert R. Kopulos, Public Service (from Deferred), 20 years, 1 month service credit, age 45, effective August 8, 2005 Barbara J. Olsen, District Court, 22 years, 4 months service credit, age, 55, effective July 30, 2005. John A. Johnson, Parks and Recreation, 26 years service credit, age 55, effective, August 13, 2005. John A. Lira, Parks and Recreation, 25 years, 2 months service credit, age 51, effective August 13, 2005. Henry J. Horst, Parks and Recreation, 29 years, 5 months service credit, age 57, effective September 15, 2005. Gary L. Biddinger, Building Safety, 19 years, 5 months service credit, age 64, effective September 15, 2005. Mary Murray, Police (Civilian), 25 years, 11 month service credit, age 44, effective September 1, 2005. Ronald Panetta, Public Service, 32 years, 8 month service credit, age 50, effective August 13, 2005. Employees Retirement System Regular Meeting of August 18, 2005 page 3 Susan L. Carrow, Parks and Recreation, 33 years, 4 month service credit, age 52, effective August 13, 2005. Carol P. Abbott, Parks and Recreation, 25 years, 8 months service credit, age 57, effective September 15, 2005, Donald E. Adcock, Waste Water, 25 years, 2 months service credit, age 62, effective September 15, 2005. Denise Estee, Planning and Development, 36 years, 4 months service credit, age 52, effective August 13, 2005. Melvin Johnson, Waste Water, 17 years, 11 months service credit, age 57, effective August 20, 2005. (Eligible through the reciprocal retirement act) Jan Sherman, Personnel, 32 years, 5 months service credit, age 54, effective September 15, 2005. Tim Curtain, Parks and Recreation, 25 years, 8 months service credit, age 54, effective September 15, 2005. Adopted by the following vote: Unanimously It was moved by Trustee Meyer and supported by Trustee Cunningham to excuse Trustee Dedic and Trustee Murphy. Adopted Unanimously Karen Williams announced deadline for submitting registration for MAPERS, deadline is August 18, 2005 and for the International Conference, November 13 - November 16. The deadline is September 30, 2005. Trustee Rhode discussed the Cash Flow Withdrawal suggested by George Tarlas of Asset Consulting. It was moved by Trustee Rhode and supported by Trustee Benavides to withdraw eight million dollars as follows: four million from Arial and four million from Loomis Saales to transfer for cash flow operations. Adopted by the following vote: Unanimously Trustee Rhode updated the Board on the Quote from Gabriel, Roeder and Smith upcoming contract fee. Employees Retirement System Regular Meeting of August 18, 2005 page 4 It was moved by Trustee Meyer and supported by Trustee Piloske to approve the new contract fee for Gabriel, Roeder, and Smith. Adopted by the following vote: Unanimously Trustee Rhode updated the Board on the Health Care project. Trustee Meyer inquired about the window people's actuarial cost. Trustee Rhode explained that originally the window people bought back at a discount. This time window people will pay full actuarial cost. Trustee Rhode updated the Board on the pending items. Mr. Doug Rubley is creating a list of gray areas that needs to be addressed in the Ordinance. Trustee Rhode distributed and discussed the July Investment Report, Trustee Rhode also updated the Board on the Securities Lending Monies. Trustee Cunningham would like to be on the Securities Lending Committee. Trustee Rhode updated the Board regarding Captain Steven Luciano's request to purchase service credits. Trustee Rhode gave an overview of the history of Captain Luciano's request. Trustee Rhode recommended denial of the request and indicated three points to consider: (1) while as he states, he may not have been fully advised about the waiver of his rights, he did sign a waiver, (2) the Reciprocal Retirement Act indicated that you have five years to put your money back, in this case, it has been over twenty years, (3) approving this request would set a precedent allowing others to come back and request to pay back their money. Captain Luciano addressed the board regarding his request. He wrote a letter to board regarding his situation. Captain Luciano informed that he was told at the time of withdrawal that he had to withdraw his money because he was not vested. He felt that the Board had the ability to make an exception in his case. The Board discussed how to apply the Reciprocal Retirement Act to Captain Luciano's request. The Act indicates if you take your money out, you have five years to repay the money. Jack Roberts explained that state law governs this situation and the Board could deny the request based on the Reciprocal Retirement Act. It was moved by Trustee Rhode and supported by Trustee Meyer to deny Captain Luciano claim to request to purchase service credits in the Employees Retirement System. Approved by the following vote: Yeas: Antekeier, Cunningham, Meyer, Piloske, Rhode Nays: Benavides Employees Retirement System Regular Meeting of August 18, 2005 page 5 The meeting was adjourned at 9:32 a.m. Minutes approved on - ao - a C05- Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOAR ,OF LU TRUSTEES F`` Q: -13 CITY OF LANSINGLim L. EMPLOYEES' RETIREMENT SYSTEM Regular Meeting September 22, 2005 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 8:34. Present: Cunningham, Dedic, Meyer, Piloske, Rhode - 5 Absent: Antekeier, Benavides, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Rhode and supported by Trustee Meyer to accept the minutes of the Regular Meeting of August 18, 2005. Adopted by the following vote: Unanimously Secretary's Report. 0 new member(s), 0 reinstatement(s), 2 refund(s), 0 transfers, 27 retired. Total active membership: 753. Refunds made since the last regular meeting amounted to $7,581.00. Retirement allowances paid for the month of September, 2005 amounted to $1,335,693.58. Total retirement checks printed for the ERS System: 768. 2 deaths. Wesley A. Allen, retired 11/01/95, died 8/12/05, age 69, wife, Donna to receive 100%; Irma E. Kostrzewski, retired 2/3/1979, died 8/18/2005, husband, Peter to receive 50%; Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Cunningham and supported by Trustee Meyer to approve the following request for Age and Service Retirement: Dewayne Angelmeyer, Parks and Recreation, 31 years, 10 months service credit, age 54, effective September 15, 2005. Brian W. Bevez, Law, 19 years, 7 months service credit, age 55, Effective August 31, 2005. Eleanor K. Love, Planning and Neighborhood Development, 31 years, 1 month service credit, age 56, effective September 15, 2005. Employees Retirement System Regular Meeting of September 22, 2005 page 2 Request for Regular Age & Service Retirement - cont. Sherrill L. McConnell -Cody, Management Services, 12 years, 3 months service credit, age 54, effective September 15, 2005 (Window) Philip L. Whittier, Police (Civilian), 31 years service credit, age 51, effective September 15, 2005. Janet Sherman, Personnel, 32 years, 4 months service credit, age 54, effective September 15, 2005. Tamara L Walker, Police (Civilian), 22 years, 11 month service credit, age 49, effective September 15, 2005. Lee Ann Foreback, Parks and Recreation 25 years, 8 months serviuce credit, age 49, effective September 15, 2005. Timothy J. Curtin, Parks and Recreation, 25 years, 8 months service credit, age 54, effective September 15, 2005. Terry N. Amon, Public Service, 28 years, 4 months service credit, age 51, effective September 15, 2005. John D. LaRue, Police -Civilian (From Deferred) 18 years, 1 month service credit, age 46, effective September 28, 2005. Timothy B. Simon, Parks and Recreation, 27 years, 9 months service credit, age 49, effective September 15, 2005. Donna Wynant, Planning and Neighborhood Development, 20 years, 11 months service credit, age 49, effective September 15, 2005. Dennis Lysakowski, Planning and Neighborhood Development, 29 years, 6 months service credit, age 47, effective September 15, 2005. James J. Campfield, Public Service, 29 years, 6 months service credit, age 49, effective September 15, 2005. Michael Peiffer, Public Service, 30 years service credit, age 50, effective September 15, 2005. Employees Retirement System Regular Meeting of September 22, 2005 page 3 Request for Regular Age & Service Retirement - cont. Lynn M. Doerr, Finance (Assessor's Office), 30 years service credit, age 49, effective September 15, 2005. Marvin Stewart, Public Service, 26 years, 10 months service credit, age 55, effective September 15, 2005, Steven K. Widder, Parks & Recreation, 27 years, 7 months service credit, age 61, effective September 15, 2005. Robert S. Moye, Public Service, 29 years, 3 months service credit, age 58, effective September 15, 2005. Robert J. Engel, Planning & Neighborhood Development, 33 years, 4 months service credit, age 53, effective September 15, 2005. Gregory J. Koessel, City Council, 29 years, 1 month service credit, age 51, effective September 15, 2005. Adopted by the following vote: Unanimously It was moved by Trustee Meyer and supported by Trustee Dedic to excuse Trustee Dedic and Trustee Antekeier, Trustee Benavides, and Trustee Murphy. Adopted Unanimously Karen Williams announced deadline for submitting registration for the International Conference, November 13 - November 16. The deadline is September 30, 2005, Trustee Rhode discussed the new Policy for Refund of Accumulated contributions. Trustee Cunningham sugggested combining the Police and Fire and ERS Retirement System into one form. Trustee Meyer suggested adding a checking list of things to do. It was moved by Trustee Rhode and supported by Trustee Cunningham to approve the Policy for Refund of Accumulated contributions with the following amendment: include Police and Fire and ERS on one form; add a checklist; give the policy a number in place it in the policy book. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of September 22, 2005 page 4 Trustee Rhode updated the Board regarding Real Estate Allocation. State law says that you cannot over allocate in Real Estate above 5% but whether an additional amount can be allocated with the "Basket Clause" is still an open legal question. George Talas, Asset Consulting recommends that the Board would transfer $3.7 million from Real Estate, $2.4 million from UBS, $1.3 million from Clarion and that this transfer occur on December 31, 2005. It was moved by Trustee Rhode and supported by Trustee Meyer to transfer $3.7 million from Real Estate, $2.4 million from UBS and $1.3 million from Clarion and transfer it to MD Sass to reallocate real estate to meet State Law requirements. Adopted by the following vote: Unanimously Trustee Rhode updated the Board regarding the status of PIMCO investment. The PIMCO parent company has legal issues with the Security and Exchange Commission. The Board recommended at a Special Joint Meeting held on September 15, 2005 to discuss the selection of WAMCO as its Core Bond Manager. WAMCO was initially the second choice and its investments are more traditional than PIMCO. It was moved by Trustee Rhode and supported by Trustee Cunningham to reverse the decision to select PIMCO as Core Bond Manager. Adopted by the following vote: Unanimously It was moved by Trustee Rhode and supported by Trustee Meyer to approve WAMCO as Core Bond Manager effective October 31, 2005 as a replacement for Loomis Saales. Adopted by the following vote: Unanimously Trustee Rhode updated that Board that Jack Roberts is working on the Universal Buy -In of Time and the Window People status for buying back time. Trustee Rhode updated the Board on the Election of Trustees. There must be an election for Mary Lou Andrews position. Additionally, Trustee Antekeier term has expired and the election for this position will be held at the same time. Trustee Rhode updated the Board on the pending items. Mr. Doug Rubley is creating a list of gray areas that needs to be addressed in the Ordinance. The Actuary Report will be presented in December. Trustee Rhode distributed and discussed the August Investment Report. It was moved by Trustee Meyer and supported by Trustee Dedic to adjourn the meeting at 9:25 a.m. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of September 22, 2005 page 5 Minutes approved on /I- _/Q -' Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson 1 r (;EI°tfD OFFICIAL PROCEEDINGS OF THE B�QY, 9,17 „TRUSTEES �,. ti65•',i: is C: Vl I s LC;\f't CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting November 10, 2005 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 8:39. Present: Antekeier, Benavides (8:43), Dedic (8:46), Piloske, Rhode, Wood - 6 Absent: Cunningham, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department, Amy Kraus, Finance Department. Secretary's Report. 3 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 0 ` retired. Total active membership: 726. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of October, 2005 amounted to $1,375,329.78. Total retirement checks printed for the ERS System: 766. 2 deaths. Dale G. Craner, retired 12/24/1979, died 8/23/05, age 85, no survivor; Arlene Chapin, widow of Craig, died on 9/28/05, age 92. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Piloske and supported by Trustee Benavides to accept the minutes of the Regular Meeting September 22, 2005 as amended. Adopted by the following vote: Unanimously It was moved by Trustee Rhode and supported by Trustee Piloske to accept the following minutes: the Police and Fire and ERS Joint Meeting of August 18, 2005; the Police and Fire and ERS Joint Meeting of September 15, 2005; and the Police and Fire and ERS Joint Meeting of October 18, 2005. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Benavides to excuse Trustee Cunningham and Trustee Murphy. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of November 10, 2005 page 2 Trustee Rhode updated the Board on the termination of Fortsman Leff as an Investment manager. A new investment manager selected was North Pointe Capital. Jack Roberts has reviewed the contract. The Board will also be moving forward with the WAMCO investment. Trustee Rhode informed the Board that Doug Rubley is reviewing the City ordinance to make recommendations for updates. Trustee Rhode informed the Board that General Election for the City Hall Department Trustee would be held in November 22 and November 23 to replace Trustee Mary Lou Andrews. Nominees for the General Election are Amy Kraus and Tom Korkoske. Trustee Antekeier welcomed new Trustee Carol Wood to the Employees Retirement System Board. Trustee Rhode updated the Board that a letter discussing Medicare Part D prescription plan would be mailed to retirees at age 65. The City will be reimbursed by Medicare for retirees who maintain their plan. Amy Kraus informed the Board regarding the window people is still outstanding. A spreadsheet of the window people was given to Jack Roberts. Trustee Carol Wood informed the Board that the City Council would hold a public hearing and possibly vote on the issue if brought to the Council before the end of calendar year The meeting adjourned at 8:58 a.m. Minutes approved on 1 J-- (S' d,5'- Glenn Kirk, Secretary Employees' Retirement System Robert Antekeier, Chairperson r-- CEI ' OFFICIAL PROCEEDINGS OF THE 13OARP ,,9F r;,J TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Michigan Retailers Association 603 South Washington Avenue Lansing, MI December 15, 2005 Thursday, 9:30 a.m. The Board met in regular session and was called to order at 10:21 a.m. Present: Antekeier, Cunningham, Dedic, Piloske, Rhode, Wood - 6 Absent: Benavides, Korkoske, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. Secretary's Report. 2 new member(s), 0 rein statement(s), 0 refunds(s), 0 transfers, 0 retired. Total active membership: 728. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of November, 2005 amounted to $1,375,264.90. Total retirement checks printed for the ERS System: 767. 2 deaths. Charles Green, retired 3/16/1973, died 9/24/2005, age 83, spouse to receive 100%; L. C. Murninghan, retired 8/29/02, died10/15/2005, age 79, wife to receive 50%. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Piloske and supported by Trustee Benavides to accept the minutes of the Regular Meeting November 10, 2005. Adopted by the following vote: Unanimously Trustee Rhode explained that John Albarez and Patricia Bell -Anderson were a part of District Court Targeted Incentive. The Board also discussed the Reciprocal Retirement Act. Trustee Rhode explained that many municipalities within Michigan participate. The act allows an employee to combine service credit from two municipalities to qualify for retirement eligibility. Jack Roberts explained that for an employee to vest for a City pension, he/she must have thirty months of service and vested in the Defined Contribution plans. Employees Retirement System Regular Meeting of December 15, 2005 page 2 It was moved by Trustee Dedic and supported by Trustee Piloske to approved the following Request for Regular Age & Service Retirements: John Albarez, District Court, 20 years, 3 months service credit, age 49, effective December 28, 2005. (Window) Patricia Bell -Anderson, District Court, 22 years, 1 month service credit, age 51, effective December 28, 2005. (Window) Antonio Benavides, Mayor's Office, 23 years, 11 months service credit, age 68, effective January 1, 2006. David A. Berridge, Public Service, 24 years, 11 months service credit, age 52, effective November 18, 2005. Nancy Cunningham, Personnel, 2 years, 11 months service credit, age 54, effective effective January 1, 2006. (Reciprocal Retirement Act) David S. Collins, Parks, 31 years, 2 months service credit, age 50, effective December 25, 2005. Kathleen M. Frantz, Law, 17 years, 9 months service credit, age 48, effective November 18, 2005. James R. Ruff, Planning and Neighborhood Development, 24 years, 8 months service credit, age 49, effective December 1, 2005 Willard K. Walker, Human Resources and Community Service, 2 years, 3 months service credit, age 71, effective January 1, 2006. (Reciprocal Retirement Act) David M. Wiener, Mayor's Office, 12 years service credit, age 66, effective January 1, 2006. The Board discussed the Request for Refund of Accumulated Contributions for Glenn Kirk. Trustee Rhode explained that the contributions was a 6.5% reduction in his salary paid into the pension system. He will not receive contributions made by the City. It was moved by Trustee Wood and supported by Trustee Cunningham to excuse Trustee Benavides, Trustee Korkoske, and Trustee Murphy. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of December 15, 2005 page 3 Trustee Dedic attended, and updated the Board on the International Foundation of Employee Benefit Plans Annual Meeting. There were over 6,000 participants and there was a catalog of approximately 100 courses available to attend. The Meeting will be held in Las Vegas in 2006. Jack Roberts distributed the Service Purchase Ordinance packet. The Board discussed the Changes to ERS system. Trustee Wood informed the Board that the City Council had passed the ordinance changes and had given them immediate effect. Jack Roberts distributed Ordinance Changes packet and updated the Board on Subsection C, regarding the Window people. Deferred Compensation 457 Funds can be used to purchase Window time that had not been purchased during the previous buy-back. The employee would pay 100% of actuary costs and request a calculation through the Retirement Office. A resolution to amend the 457 plan to allow in-service plan to plan transfer is pending. The resolution has been supported by the Deferred Compensation Committee. Jack Roberts discussed the letter from the Actuary that these changes would be cost neutral to the City and would not result in a material change in the long-term contributions or liabilities of the Retirement System. Jack Roberts asked that minutes reflect the Board's support for the Ordinance amendments. Additionally, Mr. Roberts asked for the minutes to reflect the Board acceptance of post retirement monies from deferred compensation funds. The Board had previously approved the acceptance of funds from the 457 deferred compensation plan for the purposes of buying retirement time. Jack Roberts explained that Window employees can purchase time through deferred compensation through in-service plan to plan. The Universal Buy -In employees can purchase time with post -retirement deferred compensation monies. A separating employee has up to 30 days to buy this time. It was moved by Trustee Rhode and supported by Trustee Dedic that having reviewed the December 5, 2005 letter from Brad Armstrong, the Employee Retirement System Board agrees that the amendment change in the ordinance is cost neutral to the pension plan and therefore approve it. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of December 15, 2005 page 4 Trustee Dedic requested that the Memo dated 11/23/05 from the Retirement Office regarding Steven Hoard be attached to the official minutes. Mr. Hoard was restored credit service for 13 months for the time he worked for the City of Lansing Housing Commission. Trustee Rhode distributed and discussed the October and November Investment Report. The meeting adjourned at 11:14 a.m. Minutes approved on ;ob�oertt JAnte eie�rChairperson Employees' Retirement System i Aymbrose, Secretary mployees' Retirement System Memorandum To: Scott Dedic From: Karen E. Williams Date: 11/23/2005 Re: Hoard, Steven Mr. Steven Hoard worked for the Lansing Housing Commission in 1987 (hired 3/16/1987). He resigned from the Housing Commission 3-31-88. The Housing Commission separated from the City, 4-16-1988. He was hired into the City of Lansing Employees Retirement System full time 4-19-1989. Mr. Hoard is eligible to receive 13 months of service credit for the time he worked for the City of Lansing Housing Commission from 3-16- 1977 to 3-31-1988. The Lansing Codes Section 292.15 provides for Restoration of Credited Service in certain cases. If the member's re-employment occurs within a period of four years from and after the date of his or her last separation from City employment, or in other cases of special circumstances upon approval of Council, after review and recommendation by the Board of Trustees, his or her credited service last forfeited by him or her shall be restored to his or her credit. I hope this information is helpful. If you have any questions, let me know. Karen E. Williams �k t is 8.1