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HomeMy WebLinkAbout2006 Employee's Retirement System Board MinutesOFFICIAL PROCEEDINGS OF THE BOARQ'79 TRUSTEES CITY OF r EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI January 19, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:41 a.m. Present: Antekeier, Bernero, Dedic, Korkoske, Murphy, Piloske, Rhode, Singleton, Wood - 9 Others: Karen E. Williams, Finance Department; Jack Roberts, Jerry Ambrose, Finance Department; Brad Armstrong, Linna Ye, Gabriel, Roeder and Smith Company. It was moved by Trustee Wood and supported by Trustee Dedic to accept the minutes of the Employee Retirement System Regular Meeting of December 15, 2005. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Murphy to accept the minutes of the Police and Fire and Employees Retirement System Joint Meeting of December 15, 2005. Adopted by the following vote: Unanimously Secretary's Report. 1 new member(s), 0 reinstate ment(s), 1 refunds(s), 0 transfers, 0 retired. Total active membership: 728. Refunds made since the last regular meeting amounted to $14,019.21. Retirement allowances paid for the month of December, 2005 amounted to $1,393,348.30. Total retirement checks printed for the ERS System: 772. 1 death. Richard L. Wenzlick, retired 6/7/1997, died 11/26/2005, age 69, spouse to receive 100%. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Piloske to approved the following Request for Regular Age & Service Retirements: Debbie DeLeon, Mayor's Office, 2 years, 11 months service credit, age 51, effective January 1, 2006. (Reciprocal Retirement Act) Employees Retirement System Regular Meeting of January 19, 2006 page 2 It was moved by Trustee Dedic and supported by Trustee Piloske to approved the following Request for Regular Age & Service Retirements - (cont.): Michael J. Fata, Public Service, 29 years, 3 month service credit, age 50, effective January 5, 2006. David Tijerina, Assessor's Office, 20 years, 11 months service credit, age 60, effective December 31, 2005. Kenneth L. Hart, Transportation, 30 years, 4 months service credit, age 50, effective January 25, 2006. It was moved by Trustee Rhode and supported by Trustee Murphy to retain current Chair Robert Antekeier and Vice Chair Edward Piloske as Board Officers. Trustee Rhode introduced Brad Armstrong of Gabriel, Roeder, Smith and Company who presented the 2004 Annual Actuary Report for the Employees Retirement System. Mr. Armstrong discussed how the City contribution is determined. Recommendations for the ERS System include separate trust for health care. Karen Williams notified the Board that the International Foundation of Employee Benefit Plans and the MAPERS membership are up for renewal. Renewal for both memberships were approved. Karen Williams notified the Board of the MAPERS Spring Conference, May 21-23 at Soaring Eagle in Mt. Pleasant, Michigan Trustee Piloske informed the Board of a One Day MAPERS Conference February 16, 2006, Ypsilanti, Michigan. He will attend the education conference. The Board discussed having George Tarlas of Asset Consulting Group give a new member orientation in early February. Trustee Antekeier asked for a listing of subcommittee members for next month's meeting. Trustee Rhode updated the Board of the status of new money managers, WAMCO transfer has been completed, and Northpointe should be completed soon. Trustee Rhode distributed and discussed the December Investment Report. The meeting adjourned at 9:51 a.m. Employees Retirement System Regular Meeting of January 19, 2006 page 3 Minutes approved on 2- 2-6 _D(o Robert Antekeier, Chairperson i IA br e, Secretary mplo ees' Retirement System `R rCEIVl _ i_, OFFICIAL PROCEEDINGS OF THE BOAR6 6F` TRUSTEES '- G CIIry C r CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI February 23, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:31 a.m. Present: Antekeier, Bernero (8:35), Dedic, Korkoske, Piloske, Rhode, Singleton, Wood - 8 Absent: Trustee Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Dedic and supported by Trustee Singelton to accept the minutes of the Employee Retirement System Regular Meeting of January 19, 2006. Adopted by the following vote: Unanimously Secretary's Report. 0 new member(s), 0 reinstatement(s), 2 refunds(s), 0 transfers, 0 retired. Total active membership: 728. Refunds made since the last regular meeting amounted to $12,822.92. Retirement allowances paid for the month of January, 2006 amounted to $1,427,891.99. Total retirement checks printed for the ERS System: 780. 3 deaths. Alberta Buysse(Non Bargaining) , retired 8/23/1978, died 11/15/2005, age 81, no surviving beneficiary; Edison C. Sedgman(UAW), retired 3/4/1991, died 1/5/2006, no surviving beneficiary; Hazel Hopkins(Non-Bargaining), retired 1/20/1982, died 2/5/2006, no surviving beneficiary. Domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Dedic to approved the following Request for Regular Age & Service Retirements: Melissa Readus, District Court, 19 years, 2 months service credit, age 42, effective February 2/21/2006. (WINDOW) -Total years of service: 23 years, 8 months. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of February 23, 2006 page 2 It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Board Member Murphy. Adopted by the following vote: Unanimously The Board discussed Sub -Committee Assignments. The following sub -committees for 2006 are: Disability Committee - Antekeier, Rhode, Singleton Investment Committee - Antekeier, Dedic, Korkoske, Piloske Education Committee - Dedic, Murphy, Rhode Karen Williams notified the Board of the MAPERS Spring Conference, May 21-23 at Soaring Eagle in Mt. Pleasant, Michigan. The deadline for registration will be the April Board Meeting. Trustee Rhode updated the Board that NorthPointe has been funded. Trustee Rhode updated the Board on Pending Items. Doug Rubley has been scheduled for the April meeting. The Board asked Jack Roberts to give a report on liability protection for trustees. Jack Roberts gave a brief overview of liability and fudiciary responsibility. A detailed report will be presented at a later meeting. Trustee Wood announced that there were be an indepth discussion on health care at the City Council, March 23. George Tarlas will give a presentation to the City Council, April 20. Both meetings are at 1:30 p.m. Trustee Antekeier asked Karen Williams to give a report on Mr. Gregory Fillingham, Public Service. Mr. Fillingham was initially hired 7-6-1979. He was terminated in 1980 and took a refund of his contributions 10/6/1980. He was rehired in 10/22/1981 and given back his seniority date per an arbitration agreement. He believed that he was to receive his lost service credits. There was no documentations that the refund was repaid or that the service credits were restore. Mr. Fillingham would like to retire in April and wants to purchase his prior service credits to move up his eligibility date. Mr. Fillingham would need to pay back the refund with interest to date. Trustee Rhode updated the Board on the pending items. Doug Rubley will have a report on the Ordinance Recodication. Trustee Rhode will work on the Benefits Book will Doug Rubley's assistance. The Retirement Web site is a priority and will be used to first provide information and resources to retirees. At a later time, more information can be added to the site for current employees. Employees Retirement System Regular Meeting of February 23, 2006 page 3 Trustee Rhode distributed and discussed the January Investment Report. The meeting adjourned at 9:10 a.m. Minutes approved on —�23- ` 6 _ 4E1oyees' Ambrse, Secretary Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOXk6l&j TRUSTEES CITY OF LANSING LtiJ f vrl : [ UQ• %!U EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI March 23, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:31 a.m. Present: Antekeier, Dedic, Korkoske (8:50), Murphy, Piloske, Rhode, Singleton (8:36), Wood - 8 Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Wood and supported by Trustee Murphy to accept the minutes of the Employee Retirement System Regular Meeting of February 23, 2006. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Dedic to accept the minutes of the Joint Police and Fire and Employee Retirement System Meeting of February 21, 2006. Adopted by the following vote: Unanimously Trustee Antekeier introduced Mr. Gregory Fillingham who explained the situation regarding the loss of his service credits. Mr. Fillingham was terminated and re -instated after fourteen month due to a settlement agreement. He made a request to the Board that he be allowed to purchase his prior service credits. Trustee Rhode explained that a similiar case happened in the past. The Board approved a purchase of prior service credits with 3% interest. It was moved by Trustee Dedic and supported by Trustee Piloske that Mr. Fillingham be allowed to purchase his prior service credits. Adopted by the following vote: unanimously Employees Retirement System Regular Meeting of March 23, 2006 page 2 Secretary's Report. 3 new member(s), 0 reinstatement(s), 2 refunds(s), 0 transfers, 0 retired. Total active membership: 731. Refunds made since the last regular meeting amounted to $6,986.04. Retirement allowances paid for the month of February, 2006 amounted to $1,424,562.21. Total retirement checks printed for the ERS System: 779. 0 deaths. Domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Murphy to approved the following Request for Regular Age & Service Retirements: Arthur Armstrong, Transportation, 16 years, 2 months service credit, age 58, effective February 2/22/2006. Adopted by the following vote: Unanimously Trustee Rhode explained the requests for Refund of Accumulated Contributions. Mr. William Bergman had less than thirty months. Karen Williams explained that Mr. Michael Wee moved to Ohio and believed he would not be able to use the Reciprocal Retirement Act. It was moved by Trustee Wood and supported by Trustee Dedic to excuse Board Member Bernero. Adopted by the following vote: Unanimously Karen Williams notified the Board of the upcoming MAPERS Spring Conference, May 21- 23 at Soaring Eagle in Mt. Pleasant, Michigan. The deadline for registration will be the April Board Meeting. The Due Diligence visit to Ariel Capital Management was scheduled for April 17, 2006. The Board discussed travel alternatives for the Chicago Due Diligence meeting. Trustee Murphy discussed chartering a van instead of air travel. Trustee Rhode made a formal request to the Board to have the Retirement Analyst salary split between the Police and Fire and the Employees Retirement System Board to assist in cutting budget costs. The salary and fringes charged to the Board will be rolled down to reflect the time spent only on Retirement related issues. It will be approximately $70,000 split between the two Boards for the Fiscal Year 2007. The remainder of the salary will be paid by the City. Trustee Wood discussed concerns regarding the request and its effect in relation to the City Ordinance. The Board would like to have a report from legal counsel before making a decision. Truskee Antekeier tabled the discussion until next the next meeting. Employees Retirement System Regular Meeting of March 23, 2006 page 3 Trustee Wood annouced that City Council will discuss Self -Funding of Health Care, April 5th and George Tarlas of Asset Consulting will make a presentation to the Board discussing Investments, April 20. Trustee Rhode updated the Board on Pending Items. Doug Rubley has been scheduled for the April meeting. The Benefits will work on the Benefits Book will Doug Rubley's assistance. The Retirement Web site is a priority and will be used to first provide information and resources to retirees. At a later time, more information can be added to the site for current employees. Trustee Piloske asked that Trustee Liaibility discussion be placed on pending. Trustee Rhode distributed and discussed the February Investment Report. Trustee Rhode suggested moving some of the monies in Cash to the Index Fund in the Securities Lending Account. Jack Roberts explained the Gregory Fillingham purchase of prior service credits request. He inquired about the 3% interest rate. The Board discussed that interest rate is consistent with what has been done in the past regarding accumulated contributions refunds. The meeting adjourned at 9:15 a.m. Minutes approved on JEloyeles' Ame, Secretary Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF''-, i-- TRUSTEES 2U1 ` iJ Fit F . ,I0 CITY OF LANSING ; W?; EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI April 20, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:30 a.m. Present: Antekeier, Dedic, Korkoske, Murphy, Piloske, Rhode, Singleton (8:34), Wood - 8 Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department, Doug Rubley, consultant. It was moved by Trustee Dedic and supported by Trustee Murphy to accept the minutes of the Employee Retirement System Regular Meeting of March 23, 2006. Adopted by the following vote: Unanimously Secretary's Report. 2 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 2 retired. Total active membership: 733. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of March, 2006 amounted to $1,428,783.93. Total retirement checks printed for the ERS System: 779. 1 death. Irvin R. Clark, Teamsters 580, retired 3/8/1991, died 3/17/2006, age 73, spouse to receive 100%. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Wood to approve the following Request for Regular Age & Service Retirements: Gregory A. Fillingham, Public Service, 25 years, 6 months service credit, age 50, effective April 7, 2006. (Purchased 14 months of prior service credit approved by Board) Antonio A. Coito, Parks, 30 years service credit, age 52, effective April 15, 2006. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of April 20, 2006 page 2 It was moved by Trustee Antekeier and supported by Trustee Dedic to excuse Board Member Bernero. Adopted by the following vote: Unanimously Trustee Rhode announced to the Board that is it time to present the Employee Bi-Annual Retirement Seminar and Workshop. This Conference is usually held every two years in September. It was not held last year due to the Targeted Retirement Incentive program. Jack Roberts gave a report to the Board regarding Trustee Rhode's formal request to the Board to have the Retirement Analyst salary split between the Police and Fire and the Employees Retirement System Boards to assist in cutting budget costs. Jack Roberts reported to the Board that administration expenses are to be paid by the General Fund per the Ordinance. Mr. Roberts stated that an ordinance change would be needed for the Board's administrative cost to be effective. It was moved by Trustee Wood and supported by Trustee Dedic to take the motion to have the Retirement Analyst salary split between the Police and Fire and the ERS Boards off the table. Adopted by the following vote: Unanimously It was moved by Trustee Rhode and supported by Trustee Singleton to pay half of the Retirement Analyst salary (approximately $35,000) for one year only out of the Securities Lending monies. Yeas: Trustees Korkoske, Rhode, Singleton Nays: Trustees Antekeier, Dedic, Murphy, Piloske, Wood The motion failed. Jack Roberts gave a report to the Board regarding Trustee Liability. The Errors and Omissions Policy covers employees, but it appears the Policy may be missing the endorsement to cover members such as Trustee Piloske, Trustee Murphy and Elected Officials. The Policy does not cover such things as fraud, dishonesty or bad faith. It was moved by Trustee Wood and supported by Trustee Piloske for the Board to make a recommendation to the City Council to pass a resolution to correct and amend language to cover employees and Board members as part of the budget process every year. Adopted by the following vote: Unanimously Doug Rubley distributed and presented a report on proposed City of Lansing Ordinance Changes. Issues discussed included clarification of the following Ordinance Sections: Definition; Membership and Terms of Office; Records and Reports; Membership in the System. Employees Retirement System Regular Meeting of April 20, 2006 page 3 Trustee Antekeier inquired if Doug Rubley could return to the next meeting after Trustees had the time to review the report. The meeting adjourned at 9:45 a.m. Minutes approved on�57-18-- 0 ( 6 n.. Jer Ambr e, Secretary E loyees' Retirement System X a 1" \ Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD O TRUSTEES' .:u;*a �;r� L• � CITY OF LANSING �3Y °v�iiYV EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI May 18, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:30 a.m. Present: Antekeier, Bernero (9:00 a.m.), Dedic, Korkoske, Piloske, Singleton, Wood - 8 Absent: Trustee Murphy Others: Karen E. Williams, Finance Department; Margo Vroman, Law Department; Doug Rubley. It was moved by Trustee Piloske supported by Trustee Singleton to accept the minutes of the Employee Retirement System Regular Meeting of April 20, 2006. Adopted by the following vote: Unanimously It was moved by Trustee Piloske and supported by Trustee Wood to accept the Official Minutes of the Joint Police and Fire and the ERS Meeting of April 20, 2006. Adopted by the following vote: Unanimously Secretary's Report. 1 new member(s), 0 reinstatement(s), 2 refunds(s), 0 transfers, 2 retired. Total active membership: 732. Refunds made since the last regular meeting amounted to $20,971.46. Retirement allowances paid for the month of April, 2006 amounted to $1,440,769.58. Total retirement checks printed for the ERS System: 782. 2 deaths. Gerald W. Graves, Elected Official, retired 1/1/1982, died 4/4/2006, age 82, spouse to receive 100%. Helen B. Hill, widow of UAW retiree, died 4/15/2006, age 86. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Dedic and supported by Trustee Piloske to approve the following Request for Regular Age & Service Retirements: James Nobach, Parks,(UAW) 28 years, 4 months service credit, age 50, effective May 19, 2006. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of May 18, 2006 page 2 Karen Williams notified the Board that Mr. John Lee Boise, UAW, requested a refund of his accumulated contributions. He was not vested in the retirement system, hired in 2001. He received a copy of the Reciprocal Retirement Act and submitted a notarized request form. It was moved by Trustee Wood and supported by Trustee Dedic to excuse Board Member Murphy. Adopted by the following vote: Unanimously Karen Williams announced to the Board that is it time to present the Employee Bi-Annual Retirement Seminar and Workshop. This Conference is usually held every two years in September. It was not held last year due to the Targeted Retirement Incentive program. Trustee Piloske informed the Board that the retirees found that last seminar was beneficial and hoped there would be a retiree section this year. The Board discussed new committee memberships with the departure of Trustee Rhode. The following subcommittees are: Disability Committee - Antekeier, Singleton, Wood Investment Committee - Antekeier, Dedic, Korkoske, Piloske Education - Antekeier, Dedic, Murphy, Piloske The Board discussed if Health Care Open Enrollment for retirees can be extended. Trustee Piloske explained that there was no information on the various options. In previous years, there was a chart describing benefits. Doug Rubley gave an overview of the Ordinance Recodification report. Mr. Rubley met with a subgroup of the Board to discuss the report. Trustee Dedic distributed a report detailing areas of concerns and questions. The Board discussed issues regarding the scope vs. the course of employment, beneficiary option issues, administrative expenses. Karen Williams announced that there will be an election for Trustee Dedic's position as Parks Trustee. There will be a posting for the election in early June. Karen Williams gave an Income Verification for Duty Disability Retirees Report. All of the Employees Retirement System retirees have reported outside income. Karen Williams announced that the Police and Fire Board has suggested a recognition for Jill Rhode. The Board discussed giving a plaque and a gift certificate. Employees Retirement System Regular Meeting of May 18, 2006 page 3 It was moved by Trustee Wood and supported by Trustee Dedic that employees that have served on the Board for more than five years can receive recognition purchased by the Board. The Board will recognize Jill Rhode as it has done with other Board members in the past pending the City Attorney's recommendation. If the City Attorney does not recommend spending funds from the Security Lending Monies, then Board members who would like to contribute to a gift can do so. Adopted by the following vote: Unanimously Karen Williams updated the Board the Retirement Web Site. The Website will have two stages. The first stage will be for retirees and the second stage will be current employees. The Retirement Office is gathering forms to upload to the website. Karen Williams distributed and reviewed the Investment report. It was moved by Trustee Antekeier and supported by Trustee Piloske to have the Monthly Investment Reports forwarded to the City Council. Adopted by the following vote: Unanimously The meeting adjourned at 10:01 a.m. Minutes approved on Jer Ambr e, Secretary E loyees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD-0 1ILD TRUSTEES `Grp u50 CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI June 22, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:30 a.m. Present: Antekeier, Dedic (8:35), Korkoske, Murphy, Piloske, Singleton, Wood - 7 Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Piloske supported by Trustee Wood to accept the minutes of the Employee Retirement System Regular Meeting of May 18, 2006. Adopted by the following vote: Unanimously Secretary's Report. 2 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 1 retired. Total active membership: 733. Refunds made since the last regular meeting amounted to $3,700.73. Retirement allowances paid for the month of May, 2006 amounted to $1,445,542.09. Total retirement checks printed for the ERS System: 782. 2 deaths. Joseph J. Vaydik, Parks, retired 10/1/1977, died 5/11/2006, age 91, no surviving beneficiary. Nina M. Merritt, City Clerk's Office retired 3/1/1977, died 5/20/2006, age 94, no surviving beneficiary. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Korkoske to approve the following Request for Regular Age & Service Retirements: Debra Fata, Public Service,(Teamsters 580), 28 years, 8 months service credit, age 47, effective June 15, 2006. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of June 22, 2006 page 2 Karen Williams notified the Board that Mr. Robert Hertenstein, Teamster 580 requested a refund of his accumulated contributions. He was not vested in the retirement system. He received a copy of the Reciprocal Retirement Act and submitted a notarized request form. It was moved by Trustee Wood and supported by Trustee Murphy to excuse Board Member Bernero. Adopted by the following vote: Unanimously The Board discussed the Employee Bi-Annual Retirement Seminar and Workshop. This years' Conference will be held at the Radisson, September 13. The Joint Education Subcommittee of Police and Fire and ERS Board will decide on menu and itinerary at its next meeting, Monday, July 17. The MAPERS Fall Conference is scheduled for the Grand Hotel, September 17-19. Trustees were asked to submit their registration requests by Friday, July 21 because rooms at the hotel go quickly. Mr. Piloske informed the Board that he planned to attend the MAPERS One Day Conference in Troy, July 11. Karen Williams updated the Board Election for the Parks Trustee. Board Election rules were distributed to the Trustees. The Due Diligence Visit in New York was scheduled July 11-12. Asset Consulting would need to know how many members of the Board were planning to attend as soon as possible so that details could be finalized. Karen Williams discussed the eight million -dollar withdrawal for cash flow needs and the need to rebalance the fund's portfolio to match the Board Policy's. A spreadsheet provided by Asset Consulting was distributed. It was moved by Trustee Murphy and supported by Trustee Dedic to withdraw four million dollars from Invesco and four million dollars from Julius Baer to cover cash flow needs. Adopted by the following vote: Unanimously It was moved by Trustee Piloske and supported by Trustee Korkoske to move 4.5 million dollars from Northern Trust and 4.5 million dollars from BGI to Western Asset Management to rebalance the ERS Investment portfolio in accordance with Board Policy as requested by Asset Consulting. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of June 22, 2006 page 3 The Board requested a legal opinion regarding using retirement funds to honor former Trustee members. Jack Roberts reported that it was not acceptable to give a gift from retirement monies. These funds are considered public compensation to employees. Board members can give contributions toward the plaque for Jill Rhode. If donations exceed Plaque costs, the extra monies will go toward a gift certificate. The Board discussed proposed language changes for the Ordinance. The subcommittee has met and requested information regarding hiring Doug Rubley to assist with the changes. Jack Roberts requested additional time to compare his list of changes to Doug Rubley's proposal. Per the Ordinance as written, the City Attorney's office is the Legal Counsel to the Board, and the Board may not have the authority to hire Doug Rubley to draft amendments to the ordinance. Mr. Roberts discussed Doug Rubley as an administrative expense with the Board. The language change discussion was tabled for another month. The Board requested that the Retirement Office proceed with plans to have a Benefit Book for employees and Retirement Web Site for retirees and employees. Trustee Dedic requested a list of equipment owned by ERS; a copy of Doug's contract; yearly actuary report breakdown (any income above 7% would go to prefund health care, $200/year member benefit increase starting at age 60, 25% returns to the retirement fund), Prefunding of health care report. Karen Williams distributed and reviewed the Investment report. The meeting adjourned at 10:01 a.m. Minutes approved on JElonyees e, Secretary / 1 Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD &L TRUSTEES 2 C 0 7 JUA i I A i i u= 70 CITY OF LANSING � IIISING' CITY ;LEI E EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 20, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:31 a.m. Present: Antekeier, Dedic (8:44), Korkoske, Piloske, Singleton, Wood - 6 Absent: Trustee Bernero, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Piloske supported by Trustee Wood to accept the Official minutes of the Employee Retirement System Regular Meeting of June 22, 2006 with corrections. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Piloske to accept the Official Minutes of the Joint Police and Fire and Employees Retirement System Meeting of June 20, 2006. Adopted by the following vote: Unanimously Secretary's Report. 2 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 1 retired. Total active membership: 734. Refunds made since the last regular meeting amounted to $12,924.05. Retirement allowances paid for the month of June, 2006 amounted to $1,444,851.68. Total retirement checks printed for the Employees Retirement System: 782. 2 deaths. Dorothy Gladstone, died 7/8/2006, age 87, spouse of UAW member. Vivian Adsit, died 7/13/2006, age 79, spouse of Teamster member. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Korkoske to approve the following Request for Regular Age & Service Retirements: Kip Gomoll, Human Relations and Community Services, Non Bargaining Supervisory, 28 years, 2 months service credit, age 58, effective July 15, 2006. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of July 20, 2006 page 2 Karen Williams notified the Board that Mr. Paul Elam, Teamster 214, and Angela Davenport Scott, Teamster 580 requested a refund of their accumulated contributions. Mr. Elam and Mrs. Davenport Scott were not vested in the retirement system. Both were counseled by the Retirement Office, received a copy of the Reciprocal Retirement Act and submitted a notarized request form. It was moved by Trustee Wood and supported by Trustee Singleton to excuse Board Member Bernero and Trustee Murphy. Adopted by the following vote: Unanimously The Board discussed the Employee Bi-Annual Retirement Seminar and Workshop. This year's Conference will be held at the Radisson, September 13. The Joint Education Subcommittee of Police and Fire and EMPLOYEES RETIREMENT SYSTEM Board decided on menu and itinerary and scheduled its next meeting for Monday, August 14. The Board discussed setting a budget for the Conference. It was moved by Trustee Wood and supported by Trustee Dedic to set a budget to not exceed $6,000 for the Retirement Conference. The EMPLOYEES RETIREMENT SYSTEM Board will pay for half of the budget and the Police and Fire paying half of the budget. Adopted by the following vote: Unanimously The MAPERS Fall Conference is scheduled for the Grand Hotel, September 17-19. Trustees were asked to submit their registration requests by Friday, July 21 because rooms at the hotel go quickly. Karen Williams updated the Board Election for the Parks Trustee. Trustee Scott Dedic was reelected to the Board. Tom Korkoske discussed a proposal for investment of idle cash for the Employees Retirement System. The Board discussed moving these monies to commercial paper at a higher interest rate. It moved by Trustee Piloske and supported by Trustee Dedic to approve the proposal for investment of idle cash for the Employees Retirement System contingent upon the banks use of the highest grade resolution for the monies. Adopted by the following vote: Unanimously The Board discussed the Ordinance Changes proposal by Doug Rubley. Jack Roberts gave a preliminary report to the Board. The discussion was tabled. Employees Retirement System Regular Meeting of July 20, 2006 page 3 Karen Williams gave a report to the Board regarding information requested by Trustee Dedic. Information for the first two items below was located in the Board Minute Master Books. 1. Inventory of Equipment purchased by the EMPLOYEES RETIREMENT SYSTEM & Police & Fire Boards. The equipment includes 2 computers with monitors, 2 printers, 2 desk set (3-part), 2 chairs, 2 end. 2. Copy of Doug Rubley's contract. The Board approved paying Doug Rubley $55.00 per hour as a consultant. The last renewal was in 2005. 3. Pre -funding of Health Care. Christian Goodman will make a presentation at the August Joint Meeting. 4. Yearly actuary report breakdown (any income above 7% would go to pre -fund health care, $200/year member benefit increase starting at age 60, 25% returns to the retirement fund). This information has not been located and was still under review. Trustee Piloske requested an update on the Due Diligence Dates for the New York trip. Karen Williams will contact Asset Consulting to get new dates. Karen Williams reviewed progress on the Benefits Books. The Board discussed items that would be included such as the Ordinance, Plan Summary, Commonly Asked Questions and possibly Health Care and Life Insurance Information. Trustee Wood suggested using Upward Bound students to assemble booklets for Retirement Conference. Karen Williams updated the Board regarding the Retirement Web Site. Karen Williams met with Noah Bradow and John Kutt. The Computer Services could not meet the time line requested by the Board. Mr. Kutt suggested that the Retirement Board use the template system available at the City. Noah Bradow would train Karen Williams on how to use the template and the Retirement Office would be responsible for maintaining and updating the site. The Board discussed having both benefits books and a WebSite and if there is any duplication of efforts. Trustee Wood suggested that some employees and retirees may not have access to the Web Site and books should be available. Jack Roberts reported that a plan summary is required with ERISA Plans and it may be a good idea to continue to move forward with the books. Karen Williams distributed and reviewed the Investment report. The meeting adjourned at 9:28 a.m. Minutes approved on 1�—(`7--0� Jer Ambr se, Secretary E loyees' Retirement System X a Robert Antekeier, Chairperson �-�' OFFICIAL PROCEEDINGS OF THE BOARD, TRUSTEES CITY OF LANSING 2027 1U'1 1 1 =1 = 50 EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI C1 August 17, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:40 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, Piloske, Wood - 6 Absent: Trustee Bernero, Murphy, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Brian Ross,Public Service; Brad Armstrong, Gabriel, Roeder, Smith and Company. It was moved by Trustee Wood supported by Trustee Dedic to accept the Official minutes of the Employee Retirement System Regular Meeting of July 18, 2006. Adopted by the following vote: Unanimously Trustee Antekeier requested that the Board move to Public Comments for items not on the Agenda. Mr. Brian Ross addressed the Board regarding Mr. Tim Roath, UAW of the Wastewater Division. Mr. Roath worked for the Southern Clinton County with almost ten years of seniority before coming to work for the City of Lansing. He only worked for the City of Lansing for 18 months before he developed cancer and passed away. Mr. Roath's family would like to use the Reciprocal Retirement Act to vest him for pension benefits. Trustee Antekeier asked Jack Roberts to review and comment on Mr. Roath's situation. Jack Roberts reported that Mr. Roath had to be in the prior reciprocal unit for thirty months. He can use the time with the City of Lansing to vest in the applicable preceding unit provided he meets the plan requirements. Secretary's Report. 1 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 1 retired. Total active membership: 734. Refunds made since the last regular meeting amounted to $5,608.29. Retirement allowances paid for the month of July, 2006 amounted to $1,435,012.92. Total retirement checks printed for the ERS System: 782. 2 deaths. Bertha Silverman, died 7/30/2006, retired, 2/3/1978 Clerk's Office, no surviving beneficiary. Charles S. Foote, died 8/14/2006, retired 9/1/2001, age 63, UAW, beneficiary to receive 50%. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of August 17, 2006 page 2 Karen Williams notified the Board that Ms. Kari Mole, 911 requested a refund of their accumulated contributions. She was not vested in the retirement system. Ms. Mole was counseled by the Retirement Office and submitted a notarized request form. It was moved by Trustee Wood and supported by Trustee Kraus to excuse Board Member Bernero, Trustee Murphy and Trustee Singleton. Adopted by the following vote: Unanimously The Board discussed the Employee Bi-Annual Retirement Seminar and Workshop. This year's Conference will be held at the Radisson Hotel, September 13. Karen Williams reported that set up of the ballroom, and breakout rooms will start at 4:30. The Conference will begin at 5:00 with the American Buffet served. Parking was arranged for the North Grand facility and parking passes will be distributed at the Conference. Karen Williams reviewed the flyer, itinerary, presenters and vendors for the Breakout Sessions and Benefits Fair. The MAPERS Fall Conference is scheduled for the Grand Hotel, September 17-19. Hotel Registrations for the Conference were distributed to trustees. Brad Armstrong of Gabriel, Roeder, Smith and Company reviewed the City of Lansing Employees Retirement System 6-year Experience Study from January 1, 1999 through December 31, 2004. Mr. Armstrong discussed updating the actuarial assumptions used in computing Retirement System actuarial liabilities and establishing employer contributions rates. Mr. Armstrong discussed withdrawal, disability rates and patterns of pay increases of active members. The Board reviewed the comparison of Present and Alternate assumptions. Mr. Armstrong defined some of the terms used in the report. It was moved by Trustee Wood and supported by Trustee Kraus to table the discussion on assumption Adopted by the following vote: Unanimously Karen Williams distributed and reviewed the Securities Lending report. The meeting adjourned at 9:28 a.m. Minutes approved on 1-21-0(0 Jer Ambr e, Secretary E loyees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OFF' CEI 'LiD TRUSTEES 2�!�gjt1 1 ,;; :UN cY CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting September 21, 2006 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 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, Singleton, Wood - 6 Absent: Trustee Bernero, Murphy, Piloske Others: Karen E. Williams, Finance Department; Brigham Smith, Law Department. It was moved by Trustee Kraus supported by Trustee Wood to accept the Official minutes of the Employee Retirement System Regular Meeting of August 17, 2006. Adopted by the following vote: Unanimously the�ciiu Oil i"1� I`vil'. KOair1 S, �1�,VV siivation dcscriued by Mr. .� Brian Ross from Public service who addressed the Board at the last meeting. Mr. Roath's family was able to use the time worked with the City to vest with his former employer for a pension. It was moved by Trustee Wood and supported by Trustee Kraus to accept the Official minutes of the Joint Police and Fire and Employees Retirement System Regular Meeting of August 17, 2006. Secretary's Report. 3 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 0 retired. Total active membership: 737. Refunds made since the last regular meeting amounted to $2,204.97. Retirement allowances paid for the month of August, 2006 amounted to $1,460,656.31. Total retirement checks printed for the ERS System: 778. 0 deaths. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Trustee Antekeier asked for an update of the Domestic Relation orders that was pending. Karen Williams explained that the Order was not submitted in a timely manner and the employee retired before the Order was reviewed. Jack Roberts has this order under review. Employees Retirement System Regular Meeting of September 17, 2006 page 2 Trustee Antekeier inquired whether Mr. David Fish was eligible for health care. Trustee Dedic noted that back in 1989, the vesting period required was only eight years, not fifteen years. Karen Williams also explained that Mr. Fish had the necessary time through additional seasonal employment. It was moved by Trustee Dedic and supported by Trustee Korkoske to approve the following request for Regular Age & Service Retirement. David L. Fish, Public Service (UAW), 14 years, 2 months service credit, age 58, effective September 30, 2006. Adopted by the following vote: unanimously Karen Williams informed the Board that Mr. Ramiro Sanchez submitted a written request to be evaluated for Duty Disability due to chronic back pain. It was moved by Trustee Wood and supported by Trustee Kraus to refer Mr. Sanchez request for Duty Disability to the Disability subcommittee. Adopted by the following vote: unanimously It was moved by Trustee Dedic and supported by Trustee Wood to excuse Board Member Bernero, Trustee Piloske and Trustee Murphy. Adopted by the following vote: Unanimously Karen Williams announced that everyone who attended MAPERS should have received a credit on their bill for the room deposit. The Rooms were prepaid with a check so that Trustees would not have to use their personal credit cards for charges. Karen Williams updated the Board on 2006 Retirement Conference. She discussed the Conference Survey. Suggestions included having longer and more in-depth topics. Karen Williams informed the Board that there may be need for approve supplemental monies for the budget. The Committee initially planned for 100 people. There were 186 registrants, thus there was a need to expand planning for 200 people. Karen Williams announced that dates for The International Foundation 52nd Annual Employee Benefits Conference, October 8-11 in Las Vegas. Trustee Dedic requested that Robert Antekeier be allowed to attend the conference. Robert Antekeier passed the gavel to Trustee Korkoske to call the question. Employees Retirement System Regular Meeting of September 17, 2006 page 3 It was moved by Trustee Dedic and supported by Trustee Kraus to send the Chair Robert Antekeier to the International Conference in Las Vegas. Adopted the following vote: unanimously Tom Korkoske discussed a proposal for the Retirement System to have a Tax Identification Number. Trustee Wood brought up concerns regarding liability issues. The Board asked that the legal counsel review the proposal before action is taken by the board. Karen Williams distributed and reviewed itinerary, plane and hotel registrations for the Due Diligence Visit to New York, September 25-26, The Board was scheduled to visit MDSass, Julius Baer, and ING Clarion. Trustee Wood proposed that the ERS Board put together a Health Care Subcommittee to work with the Police and Fire Board to review health care costs. Trustee Korkoske and Trustee Scott Dedic volunteered to serve on the subcommittee. It was moved by Trustee Dedic and supported Trustee Korkoske to put together a Joint Subcommittee With the Police and Fire Board on Health Care. LG. y Trustee Wood also proposed working jointly with the Police and Fire Board regarding Ordinance changes to get information to the council at the same time. It was moved by Trustee Wood and supported by Trustee Dedic to form a subcommittee for Ordinance Changes. Adopted by the following vote: unanimously The new subcommittee for Ordinance Changes: Trustee Antekeier, Dedic, Kraus, Piloske. Trustee Dedic inquired about when the Board is notified regarding a deferred pension, prior to withdrawal. The Board asked that the number for deferred pensions be added to the secretary's report. Trustee Dedic suggested bringing in pension specialist attorney. The Board discussed investigating the process for hiring outside legal counsel. The City Attorney raised questions regarding whether the Board could hire outside counsel. Trustee Dedic inquired about whether an employee was vested and eligible for retirement. The City Attorney addressed the questions raised by Trustee Dedic. Karen Williams informed the Board that the Retirement Office will continue working on the Benefit Book in addition to the web site. Karen Williams will provide access to the Web Site for Trustees to view and give their suggestions. Karen Williams distributed and reviewed the Investment Report. The meeting adjourned at 9:48 a.m. Minutes approved on Jer Ambr e, Secretary E loyees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD 6�EIVED TRUSTEES 211 7 J1�-,I is CITY OF LANSING _:`<<iw�' �✓i i „ j EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI October 19, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:44 a.m. Present: Antekeier, Dedic (9:08), Korkoske, Kraus, Piloske, Wood - 6 Absent: Trustee Bernero, Murphy, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Wood supported by Trustee Kraus to accept the Official minutes of the Employee Retirement System Regular Meeting of September 21, 2006. Adopted by the following vote: Unanimously Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 1 retired. Total active membership: 736. Total deferred: 37. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of September, 2006 amounted to $1,438,041.79. Total retirement checks printed for the ERS System: 778. 1 death. Ronald E. Cole (Public Service), retired, 2/8/1992, died 9/9/2006, age 74, beneficiary to receive 50%. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Kraus to approve the following request for Regular Age & Service Retirement. Kenneth Coin, District Court (Exempt), 27 years, 1 month service credit, age 50, effective November 6, 2006. Adopted by the following vote: unanimously Karen Williams informed the Board that Mr. Ramiro Sanchez, who requested a duty disability was scheduled to see the Medical Doctor, November 1, 2006. It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Board Members Bernero, Murphy and Singleton. Adopted by the following vote: Unanimously Employees Retirement System Regular Meeting of October 19, 2006 page 2 Karen Williams updated the Board on 2006 Retirement Conference. She reviewed the Expense Report for the Retirement Seminar. The total invoice amount was $7,336.94. Karen Williams informed the Board that there the cost exceed the budget of $6,000. The Board was asked to approve supplemental monies of/2 of the overage, which amounted to $668.47. It was moved by Trustee Kraus and supported by Trustee Korkoske to approve supplemental monies of $668.47 to be paid from the Securities Lending Monies for the Retirement Seminar. Adopted by the following vote: unanimously Karen Williams discussed the International Foundation of Employee Benefit Plans Membership Dues of $625 for the year. The cost of the dues are split between the Employees Retirement System and the Police and Fire Board. It was moved by Trustee Wood and supported by Trustee Korkoske to pay the cost of of the dues for the International Foundation of Employee Benefit Plans. Adopted by the following vote: unanimously Trustee Korkoske reviewed the proposal for the Retirement System to have its own Federal Identification Number. Trustee Korkoske suggested a separate number to eliminate confusing with the Internal Revenue Service. Trustee Wood and Trustee Kraus raised concerns about the additional liability of having a separate number. Jack Roberts was asked to review the proposal. The item was moved to pending. Karen Williams distributed information regarding Gabriel, Roeder, Smith and Company Minute Master Fees for calendar year 2006. The Board discussed the proposed conversion from paper and Compact Disc to web -based electronic versions. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Minute Master Fee for calendar year 2006 with notification to Gabriel, Roeder, Smith and Company to come before the Board to answer questions regarding the conversion. Adopted by the following vote: unanimously Karen Williams distributed the Impact of New Assumptions for Contributions from General Fund to Retirement System from Gabriel, Roeder, Smith and Company. If approved, the new assumptions would change the amount of the annual contribution. Employees Retirement System Regular Meeting of October 19, 2006 page 3 Jack Roberts informed the Board that the Law Department would hire Doug Rubley to work on the suggested ordinance changes in Mr. Rubley's report. Trustee Wood would like the Board to give a position on drafted changes that go before City Council. Trustee Antekeier informed the Board that the original direction given to Mr. Rubley for the report was to simplify the language in the ordinance. It was moved by Trustee Wood and supported by Trustee Korkoske to request a final accounting from Doug Rubley regarding the Ordinance Changes. Adopted by the following vote: unanimously Trustee Antekeier inquired regarding the status of moving to the Julius Baer Trust. Jack Roberts has the documents under review. Karen Williams informed the Board that the Retirement Office will continue working on the Benefit Book in addition to the web site. Karen Williams provided access to the Web Site for Trustees to view and give their suggestions. The meeting adjourned at 9:47 a.m. Minutes approved on — /(a -- D (� Jer Ambr e, Secretary E loyees' Retirement System x �, \ Robert tlAntekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF `FCERT01 2 0'TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI November 16, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:34 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, Murphy, Piloske, Singleton, Wood - 8 Absent: Trustee Bernero Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Wood and supported by Trustee Kraus to accept the Joint Police and Fire and Employees Retirement System Regular Meeting of October 17, 2006 with corrections. Adopted by the following vote: Unanimously It was moved by Trustee Kraus and supported by Trustee Wood to accept the Official minutes of the Employee Retirement System Regular Meeting of October 19, 2006 with corrections to page 2. Adopted by the following vote: Unanimously Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 1 retired. Total active membership: 737. Total deferred: 37. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of October, 2006 amounted to $1,437,282.31. Total retirement checks printed for the ERS System: 779. 3 deaths. Henry C. McMillen (Public Service), retired, 11/21/1993, died 10/11/2006, age 83, no beneficiary. Gladys G. Asbridge, died 10/8/2006, age 96, surviving spouse of Robert. Peter E. Kostrzewski, died 9/21/2006, age 91, surviving spouse of Irma. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of November 16, 2006 page 2 It was moved by Trustee Korkoske and supported by Trustee Dedic to approve the following request for Regular Age & Service Retirement. Monica J. Delgado, District Court (Teamster), 22 years, 8 months service, age 42, 5 months, effective December 1, 2006. (WINDOW employee eligible with 65 points combination of age and service) Adopted by the following vote: unanimously Karen Williams informed the Board that Mr. Ramiro Sanchez, who requested a duty disability was saw the Medical Doctor, November 1, 2006. It was moved by Trustee Dedic and supported by Trustee Korkoske to excuse Board Members Bernero. Adopted by the following vote: Unanimously Karen Williams updated the Board on Julius Baer investments. The Trust papers have been prepared and will be submitted to Julius Baer. The new Trust should be effective by December 1, 2006. The Board's Investment subcommittee meet jointly with the Police and Fire Board to discuss recommendation for a new small/mid cap manager to replace Ariel Investments. Three management companies, GW Capital, Integrity and River Road, will be interviewed December 20, 2006. Jerry Ambrose provided an update of the Zoo employees that may be transferred to Ingham County. An agreement with the County is still pending. The Board expressed concern and questions regarding transferring pension assets from the Retirement System to the county for the employees. The Board discussed their fiduciary responsibilities to the ERS system and the impact of the transfer on the system. Karen Williams reported that Doug Rubley sent a final bill regarding Ordinance Changes. Trustee Korkoske reported that the Retirement System will be conducting a health care audit. The System will be verifying eligibility of those insured and their dependents. Retiree files will be updated and there will be a dedicated phone line for inquiries. Trustee Dedic asked that notification be sent to the representative of all the bargaining units. Employees Retirement System Regular Meeting of November 16, 2006 page 3 Trustee Dedic asked for information regarding how military time is credited and accounted for during times of deployment. Jack Roberts explained that the employee in question remained an active employee of the system. In a twelve month period, no employee can earn more than twelve service credits. The employee wanted to purchase additional time for that year. Jack Roberts reviewed the both the ERS system and the Police and Fire System ordinance. The Police and Fire ordinance includes a section to purchase additional military time. However, if an employee is deployed, he or she continues to receive service credit. Trustee Wood inquired if the ordinance was being reviewed as the result of the passage of Proposal 2. The Human Resources Department has asked the Legal Department to review the ordinances and other areas that may be affected. Karen Williams informed the Board that the Retirement Office will continue working on the Benefit Book in addition to the web site. Karen Williams distributed and reviewed the Investment Report. The meeting adjourned at 9:57 a.m. Minutes approved on /4 --1/ — 0 6 obert Antekeier, Chairperson Employees' Retirement System r�y Py nbrose, Secretary ployees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD?[QJFL(�,/L_1; TRUSTEES ?0`07 JU,13 1 l r E CITY OF LANSING ,,,.,, V. EMPLOYEES' RETIREMENT SYSTEM" Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI December 21, 2006 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:33 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, Murphy, Piloske, Wood - 7 Absent: Trustee Bernero, Singleton Others: Karen E. Williams, Jerry Ambrose, Finance Department; Christine Timmon, Public. It was moved by Trustee Kraus and supported by Trustee Dedic to accept the Employees Retirement System Regular Meeting of November 16, 2006. Adopted by the following vote: Unanimously Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 1 retired. Total active membership: 736. Total deferred: 38. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of November, 2006 amounted to $1,435,467,99. Total retirement checks printed for the ERS System: 778. 1 death. Maxine Risch (NonBargaining Unit -Courts), retired, 4/3/1981, died 11/10/2006, age 86, no beneficiary. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Karen Williams reported to the Board that Mr. Ramiro Sanchez medical report from Dr. Roth will not be available until the new year. Trustee Wood requested that Mr. Sanchez be contacted and updated regarding the status of the report. It was moved by Trustee Murphy and supported by Trustee Korkoske to excuse Board Members Bernero and Singleton. Adopted by the following vote: unanimously Karen Williams distributed information regarding MAPERS and requested approval of 2007 dues of $50.00. It was moved by Trustee Wood and supported by Trustee Kraus to approve 2007 MAPERS dues. Adopted by the following vote: unanimously Employees Retirement System Regular Meeting of December 21, 2006 page 2 Trustee Antekeier opened the floor for Public Comments for items not on the Agenda. Christine Timmon informed the Board that she heard at a council meeting that that Administration had plans to remove retirement funds to balance the budget. Ms. Timmon expressed her concern and hoped that the Retirement Board would fight for that not to happen. Ms. Timmon also expressed concern that there was a conflict of interest in having both the Mayor and the Human Resources Director on the Board. Karen Williams distributed the 2007 Meeting Schedule for the Police and Fire and the Employees Retirement System Boards. Trustee Antekeier discussed with George Tarlas, Asset Consulting, regarding moving to quarterly joint meetings. It was moved by Trustee Murphy and supported by Trustee Dedic to approve the 2007 Employees Retirement System meeting schedule. Adopted by the following vote: unanimously Jerry Ambrose updated the Board regarding the zoo lease and employees. The lease is still pending and the administration will move forward on obtaining an actuary report. The actuary report would address the retirement funds that would transfer with the zoo employees to Ingham County. Trustee Murphy expressed concern and interest in having the legal counsel's views on the subject before voting. Trustee Wood expressed interest in having the board's position before City Council votes on this issue. Trustee Dedic inquired to the Board if a separate actuary report would be appropriate. Trustee Dedic inquired to the City Administration regarding House Bill 6619. Mr. Jerry Ambrose overviewed the House Bill 6619 that would allow the City to borrow money to fund health care. Trustee Antekeier reported to the Board regarding the small/mid cap fund managers. Members of the Employees Retirement System Board met jointly with the Police and Fire Board to discuss recommendation for a new small/mid cap manager to replace Ariel Investments. Three management companies, GW Capital, Integrity and River Road, will be interviewed December 20, 2006. It was moved by Trustee Wood and supported by Trustee Kraus to hire Integrity to replace Ariel as new fund managers. Adopted by the following vote: unanimously Employees Retirement System Regular Meeting of December 21, 2006 page 3 Trustee Korkoske updated the Board on the Health Care Audit. Audit letters were mailed in mid -December to all retirees eligible for health care. A temporary employee was hired to assist retirees in obtaining material required for the audit. The temporary employee is also assisting in reviewing retiree files to determine eligibility. Karen Williams informed the Board that the Retirement Office will continue working on the Benefit Book in addition to the web site. Karen Williams distributed and reviewed the Investment Report. The meeting adjourned at 9:17 a.m. r, Minutes approved on lzulv Jerry brose, Secretary :Employees' Retirement System �ZZcif Robert Antekeier, Chairperson