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HomeMy WebLinkAbout2007 Employee's Retirement System Board MinutesOFFICIAL PROCEEDINGS OF THE BOARD Of TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI January 18, 260700 Thursday, 8:3a,a".m. The Board met in regular session and was called to order at 8:32 a.m. Present: Antekeier, Dedic, Korkoske, Murphy, Piloske, Singleton (8.37), Wood - 7 Absent: Trustee Bernero, Kraus Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Brigham Smith, Law Department; David Hoffman, Gabriel, Roeder, Smith and Company. It was moved by Trustee Wood and supported by Trustee Dedic to accept the Employees Retirement System Regular Meeting with corrections of December 21, 2006. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Korkoske to accept the Joint Police and Fire and Employee Retirement System Meeting of December 21, 2006. Adopted by the following vote: Unanimously Secretary's Report. 3 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 0 retired. Total active membership: 739. Total deferred: 38. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of December, 2006 amounted to $1,436,736.80. Total retirement checks printed for the ERS System: 778.0 deaths. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Karen Williams distributed copies of the Mr. Ramiro Sanchez's medical reportfor review by the Board. The Board discussed Mr. Ramiro Sanchez's request for Duty Disability Retirement. Trustee Wood had concerns regarding the transmission of the doctor's report via email and HIPAA violations. Jack Roberts advised the Board that it is not a HIPAA violation for those members who received it via email, because those members had a legitimate reason to receive it. The City Attorney suggested that the email could state in the subject line that the information is privileged and confidential, or use paper copies. Jack Roberts advised the Board that the meeting could be recessed and the subcommittee can meet to make a recommendation. Employees Retirement System Regular Meeting of January 18, 2007 page 2 The meeting recessed at 8:49 a.m. The Disability subcommittee met with a review of request by Trustee Singleton. The meeting reconvened at 8:54 and recommended to the full Board to approve the request for Duty Disability Retirement for Mr. Ramiro H. Sanchez. It was moved by Trustee Wood and supported by Trustee Dedic to approve the Request for Duty Disability Retirement of Mr. Ramiro H. Sanchez. Approved by the following vote: unanimously All medical reports were returned to the Retirement Analysts. Karen Williams reported to the Board that Mr. John Bensinger submitted a written request for his Accumulated Contributions. Mr. Bensinger received a copy of his retirement estimate, his estimate of accumulated contributions, and the reciprocal retirement act for his review. It was moved by Trustee Wood and supported by Trustee Dedic to approve the request for Refund of Accumulated Contribution of Mr. John Bensinger. Approved by the following vote: unanimously It was moved by Trustee Wood and moved by Trustee Dedic to excuse Board Members Bernero and Kraus. Adopted by the following vote: unanimously Karen Williams distributed information regarding the Stars and Strips 2007 National Public Employees Retirement Funds Summit. She requested that Board Members can reviewthe conferences brochures available and inform the Retirement Office if the member who like to attend. Mr. David Hoffman of Gabriel, Roeder, Smith and Company presented the 2005 Employees Retirement System Actuary Report. Mr. Hoffman gave an overview of the report and a history of the contribution rates. He explained the primary purpose to determine a contribution for the current fiscal year. The Board discussed the impact of the 2005 Targeted retirement incentive on the contribution and actuarial evaluation. Employees Retirement System Regular Meeting of January 18, 2007 page 3 It was moved by Trustee Piloske and supported by Trustee Wood to have an actuary report regarding the Targeted Retirement Incentive Report. The motion was amended by Trustee Wood to have Gabriel, Roeder, Smith and Company provide a cost for the report for review before the report is requested. Adopted by the following vote: unanimously The Board requested an update on the selection of the new small/mid cap manager, Integrity. Jack Roberts advised the Board that a final fee schedule had not been submitted by Integrity and Mr. Roberts also had additional concerns that he would like to address regarding the contract. Jack Roberts distributed a proposal for the Domestic Relations Order (DRO) policy. He asked the Board to review the proposal for possible passage at a future meeting. Jack Roberts explained what is meant by "pay status" and discussed that form that was developed by legal counsel as a sample for attorneys preparing DROs for the system. Mr. Roberts also requested an official written policy that confirms that funds for calculations and certification by Gabriel, Roeder, Smith and Company be collected in advance. This policy has been the Board's past practice for the handling of Eligible Domestic Relations Orders (EDROs). Trustee Wood discussed a Policy Book to be prepared by the Retirement Office. The Police and Fire Board are also having a Policy Book prepared for Trustees. It was moved by Trustee Wood and supported by Trustee Korkoske to have the Retirement Analyst prepare a Policy Book for Trustees. Adopted by the following vote: unanimously The City Attorney, Brigham Smith, discussed his letter regarding concerns with the Board seeking outside counsel. The letter was distributed to Board members for review. Mr. Smith advised that any outside legal counsel should be contracted through the City Attorney's office. The City Attorney Office advised that the Board by charter does not have the authority to seek outside legal counsel. The Board discussed Public Act 38.1133 and how it relates to the Retirement Board. The Board agreed to continue their search as voted upon at the December Joint Meeting. Employees Retirement System Regular Meeting of January 18, 2007 page 4 Jack Roberts updated the Board regarding the Retirement System Federal Identification Number. Jack Roberts is consulting outside legal counsel regarding that tax implications. Jack Roberts will further address Trustee Wood regarding the liability exposure. Trustee Robert Antekeier excused himself and Vice Chair Edward Piloske assumed the chair at 10:30 a.m. Trustee Wood updated the Board on the Joint Ad Hoc Committee on Health Care. The subcommittee discussed pre -funding of health care and make changes to the ordinance so that the Retiree Board can be responsible for health care. Jack Roberts advised that the Health Care Trust vehicle will dictate the type of administration necessary for the Trust. The next meeting is scheduled for January 26, 2007. Trustee Antekeier resumed the chair at 10:32 a.m. Mr. Jack Roberts updated the Board regarding the Ordinance Changes review. He has spoken with Doug Rubley and is moving forward with the project. Trustee Piloske defined to the Board the scope of a proposed Operational Audit. He expressed concern that the Board hire an external auditor to review the system for efficiency. Jack Roberts advised an audit was completed recently by Doug Rubley on pension calculations. Trustee Piloske expressed concerns that the Board should move forward to have a full Audit. Trustee Antekier referred the item to the Investment subcommittee to develop a plan to determine the scope for the Audit. Jerry Ambrose updated the Board regarding the zoo lease and employees. The lease is still pending and the administration has moved forward on obtaining an actuary report. The actuary report would address the retirement funds that would transfer with the zoo employees to Ingham County. Karen Williams updated the Board on the Health Care Audit. Audit letters were mailed in mid -December to all retirees eligible for health care. The Retirement Office has received a good response from retirees. 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. The deadline for submitting information is January 31, 2007. After this date, second letters will be mailed to non -responders. Karen Williams discussed the scope of the audited files. Employees Retirement System Regular Meeting of January 18, 2007 page 5 Karen Williams distributed and reviewed the Investment Report. The meeting adjourned at 11:16 a.m. i Minutes approved on q-aa -07 Prn ry Am rose, ecretary loy es' Retirement System Robert Antekeier, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THEACAARD, ,oFs; TRUSTEES , CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI February 22, 2007 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:36 a.m. Present: Antekeier, Dedic (8:38), Korkoske, Kraus, Murphy (8:43), Piloske, Singleton (8:41), Wood - 8 Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith, Law Department; Mike Lewis, Fire Department; Doug Rubley, Consultant. It was moved by Trustee Wood and supported by Trustee Dedic to accept the Employees Retirement System Regular Meeting of January 18, 2007. Adopted by the following vote: Unanimously Trustee Antekeier opened the floor for public comments for items on the Agenda. Doug Rubley addressed the ERS Board regarding that status of the Retirement Ordinance Review and revision. Doug Rubley and Jack Robert of the Law Department have had a series of meeting and have devised a plan to incorporate revisions into the Ordinance. The revisions will include a clarification/simplification of the language, changes the subcommittee has suggested, and organization of a prior history section in an appendix. Phase one would involve simplification of the ordinance. Phase two would involve ordinance changes. Secretary's Report. 2 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 0 retired. Total active membership: 725. Total deferred: 37. Refunds made since the last regular meeting amounted to $17,199.01. Retirement allowances paid for the month of January, 2007 amounted to $ 1,458,932.29. Total retirement checks printed for the ERS System: 778. 4 deaths. Jane C. Gaukel, (T580), retired 4/1/1990, died 12/23/2006, age 75, no beneficiary; George W. Hinman, (T580), retired 4/1/1990, died 1/9/2007, age 90, no beneficiary; Ruth Hudson, died 1/27/2007, age 89, surviving spouse of Chester (UAW); Margaret D. Martell, died 1/15/2007, age 88, surviving spouse of Garland (Non - Bargaining). Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of February 22, 2007 page 2 It was moved by Trustee Kraus and supported by Trustee Murphy to approve the following request for Regular Age and Service Retirement: Murray Britton, Management Services, (Teamster 580),16 years, 4 months service, age 50, effective February 24, 2007. (WINDOW employee eligible with 65 points combination of age and service) Approved by the following vote: unanimously Karen Williams distributed Mr. Kurt John Miller's request for refund of accumulated contributions form. Ms. Williams informed the Board of the procedure. The Board requested that social security number for employee only be available to the Retirement Office. The forms were returned to the Retirement Analyst. It was moved by Trustee Wood and supported by Trustee Dedic to approve the request for Refund of Accumulated Contribution of Kurt Miller. Approved by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee Singleton to excuse Trustee Bernero. Approved by the following vote: unanimously Trustee Antekeier opened the floor for nominations for election of officers of the Employees Retirement System. It was moved by Trustee Kraus and supported by Trustee Murphy to nominate and elect Robert Antekeier as Chairperson of the Employees Retirement System Board. Approved by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee Murphy to elect Scott Dedic as Vice Chair of the Employees Retirement System Board. Approved by the following vote: unanimously Karen Williams distributed the Subcommittee membership list. Trustee Murphy suggested that the Chairperson assign Trustees to the various subcommittees. Trustees were asked to submit their names and areas of interest to the chair. Employees Retirement System Regular Meeting of February 22, 2007 page 3 Jack Roberts reviewed and distributed the Eligible Domestic Relations Policy and Domestic Order Policy. Mr. Roberts provided an overview for the Eligible Domestic Relations Policy. The Board hired Gabriel, Roeder, Smith and Company to provide an appropriate form. Mr. Roberts asked that the Board to adopt and ratify the procedure and fees for the EDROs. Trustee Wood inquired regarding if the fee should be separate from the policy. Jack Roberts advised the Board where the fee could be placed. It was moved by Trustee Wood and supported by Trustee Murphy to adopt the new Eligible Domestic Relations Order Policy and that it supersedes all other Eligible Domestic Relations Order 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 Jack Roberts provided an overview for the Domestic Relations Order (DRO). Mr. Roberts advised the Board on the process that will be used by the Retirement Office and Law Office regarding retirees who are already in "Pay status." Mr. Roberts asked that the policy be approved and ratified by the Board. Trustee Wood inquired about the fees. It was moved by Trustee Wood and supported by Trustee Kraus to adopt the new Domestic Relations Order Policy and that is supersedes all other Domestic Relations Order policies. This policy and the sample form 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 Trustee Antekeier updated the Board that Requests for Information were mailed out to law firms regarding outside legal counsel. The City Attorney prepared an opinion at Trustee Murphy's request. Mr. Smith distributed and presented Opinion 07-03 regarding Retention of Independent Council. The City Attorney reviewed the Requests for Information and contacted the forms on the list. Mr. Smith discussed the process to obtaining outside legal counsel. The ERS Board discussed outside legal counsel with the City Attorney. The Board also discussed possible issues where outside legal counsel could be utilized. Trustee Antekeier requested that a subcommittee be formed to review material obtained from the Requests for Information mailed by the ERS Board. Trustee Antekeier appointed Trustee Wood chair of the Outside Legal Counsel Subcommittee. Trustee Antekeier also appointed Trustee Dedic, Kraus and Singleton. City Attorney Brigham Smith was appointed ex-officio to the subcommittee. The Subcommittee would review, interview and make recommendations to the Board. Employees Retirement System Regular Meeting of February 22, 2007 page 4 Jack Roberts distributed a policy for Disability Application Review for the Board to consider and approve at a future meeting. Jack Roberts updated the Board regarding the Retirement System Federal Identification Number. Mr. Roberts talked with Outside Legal Counsel regarding the Board's concern of fiduciary liability. Outside Legal Counsel suggested that it is appropriate for the Board to have its own federal identification number. Jack Roberts advised that the City's Errors and Omissions policy covers liability for Board members. It was moved by Trustee Wood and supported by Trustee Korkoske for the Employees Retirement System to have its own Federal Identification Number. Adopted by the following vote: unanimously Trustee Wood announced that Joint Health Care Subcommittee will meet to further discuss health care issues. The Board discussed the Zoo lease and employees. The Board discussed the funding level in which the Employees Retirement System would need to transfer to the other system. Trustee Wood concerned that the Board does not have all the information to review before a vote would be needed. Jack Roberts advised that the Board could ask the retirement analyst to administration about the status of the Actuary Report. It was moved by Trustee Dedic and supported by Trustee Murphy that the Board request in writing to the administration that a timetable on the actuary calculation and update be given to the board. Adopted by the following vote: unanimously Karen Williams reported to the Board regarding the Health Care Audit. Second requests letters have been mailed for retirees that did not respond to the first request. The ERS files continue to be audited. Mr. Piloske expressed a concern from a retiree there were no stamped return envelope. Trustee Piloske requested a presentation from the External Auditor at the next Joint meeting in May. Karen Williams distributed and reviewed the Investment Report. The meeting adjourned at 11:16 a.m. Employees Retirement System Regular Meeting of February 22, 2007 page 5 Minutes approved on 3-2-2--2-tx9 *nbrose, Secretary mployees' Retirement System obert Ante keier, Chairperson Employees' Retirement System ELIGIBLE DOMESTIC RELATIONS ORDER POLICY This policy governs those instances where an employee member divorces prior to retirement. Before the Retirement Plan can honor the domestic relations order, it must first ascertain that the order is an eligible domestic relations order meeting all the requirements of Michigan Act 46, Public Acts of 1991. The City of Lansing has established a procedure for both the review and certification of the EDRO and the calculation of the Alternate Payees' assigned portion of a pension under an EDRO. Both the actual certification and calculation services are performed by the retirement system's actuary, Gabriel, Roeder, Smith and Company (ORS). GRS's fees for performance of these services are the responsibility of the plan participant and his or her spouse with payment due in advance of submission to the actuary. Adopted and ratified this 22" d day of February, 2007 by the following vote: Fees in effect February 22, 2007 $600.00 certification $850.00 calculation S:Vluunmy_CmmscpGDltOiCpRO pnlicy.wpJ DOMESTIC RELATIONS ORDER POLICY The Board will honor Michigan Domestic Relations Orders (DRO) that assign some or all of the periodic monthly pension benefit payments of a retiree (participant) who is in pay status to the participant's divorced spouse, provided that all the following conditions are met: 1, the assignment is only for part or all of the joint lifetime of the participant and former spouse, i.e., while they are both living, 2. the DRO is properly issued by a court of competent jurisdiction as part of a divorce between the participant and a spouse (alternative payee) and is included in a judgment of divorce or an order authorized by the divorce, 3. the DRO does not require the plan to do or incur any of the following: a. make any payment or take any action which is inconsistent with any federal law, rule, regulation, or applicable judicial decision; b. provide any type or form of benefit, or any option, which is not otherwise provided for under the provision of the Plan; C. provide increased benefits; d. alter or amend the established survivor benefits of either Party, as selected and determined under the Plan by the Participant at the time of retirement; e. incur any greater cost or liability to the Retirement System or Plan than existed before the entry of the DRO; and/or, f. provide benefits to the Alternate Payee which are required to be paid to another Alternate Payee under another order previously determined to be a DRO, a Qualified Domestic Relations Order, or an Eligible Domestic Relations Order under 1991 PA 46, as amended, and 4. the DRO is submitted and complies with the following acceptance procedure: a, it is submitted to the Retirement Analyst in writing. Preferably, the initial submission will be made before the DRO is entered by the Court; it is reviewed and approved as to form by the City Attorney. In the review, the City Attorney must determine that the DRO is issued in compliance with Michigan law, clearly and understandably expresses the intended divisions of the periodic monthly pension benefit payments between the participant and alternative payee, and meets the other requirements of this policy. The City Attorney will notify the Retirement Analyst when the DRO is approved as to form; before the DRO assignment will be made effective, the Retirement Analyst must receive the DRO that has been entered by the court, together with sufficient evidence of the entry. The Board has developed a model DRO for use with the Employees' Retirement System. The rders which follow a model DRO exactly will likely be model DRO is attached. Submitted o approved quickly and without required modifications. The Board realizes that the model DRO does not cover every possible type of valid provision. However, orders which depart from the model DRO will necessitate detailed review by the City Attorney and possible delay in the approval process. Adopted and ratified this 22vda of JFQ v�.+ , 2007, by the following vote: Y STATE OF MICHIGAN IN THE CIRCUIT COURT FOR THE COUNTY OF Plaintiff, rile No. v HON. Defendant. (Attorney Name) (P#) Attorney for Plaintiff (address) (telephone #) (Attorney Name) (P#) Attorney for Defendant (address) (telephone #) DOMESTIC RELATIONS ORDER FOR THE CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM PLAN At a session of said Court, held in the Circuit Court for the County of , State of Michigan this day of )2006. PRESENT: HONORABLE Circuit Judge This Order is intended by the Plaintiff, Defendant, and the Court to serve as a Michigan Domestic Relations Order (DRO), by which Defendant/Plaintiff assigns a portion of his/her retirement benefit under the Retirement System specified below to Plaintiff/Defendant , It is further intended by the Plaintiff, Defendant, and the Court that this DRO comply with Michigan law, including MCL 552,18, MCL 552.101, and MCL 38.1684, and be in accordance with City of Lansing retirement plan identified in Section 1 below. Jurisdiction for the entry of this DRO is contained and/or reserved in the Judgment of Divorce entered on the day of , 20 , and it is intended that this DRO be incorporated into and be a part of the Judgment of Divorce. NOW, THEREFORE, IT IS ORDERED AND ADJUDGED as follows: RETIREMENT PLAN 1. The name of the Plan subject to this DRO is: CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM 2. This DRO shall be mailed to: CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM ATTN: RETIREMENT ANALYST 124 West Michigan Avenue 811 Door, City Hall Lansing, MI 48933 PARTICIPANT 3. The Participant is the Plaintiff/Defendant, Social Security No.: XXX-XX- ; date of birth: ; retirement effective date: ; Option Chosen: Straight Life Option with % Surviving Spouse Benefit; whose last known address is: (NAME) (address) 2 ALTERNATE PAYEE t 4. The Alternate Payee is the Defendant/Plaintiff, Social Security No.: XXX-XX- ; date of birth: ]mown address is: (NAME) (address) DATE OF MARRIAGE AND DATE OF DIVORCE 5. The Participant and the Altemate Payee were married on: and divorced on: EFFECTIVE DATE OF THIS ORDER : whose last 6. This DRO shall take effect upon filing with the clerk of the Circuit Court and the acceptance by the Plan pursuant to Section 9 and, thereafter, shall be binding upon the Plan. PARTIAL ASSIGNMENT OF RETIREMENT BENEFITS 7. The purpose of this DRO is solely to divide between the Plaintiff and Defendant the periodic monthly pension benefit, and identified increases thereto, that would otherwise be due and payable to the Participant during the joint lifetime of the Plaintiff and Defendant pursuant to the Retirement System Plan. The Participant assigns to the Alternate Payee a portion of his/her benefits from the Retirement System Plan and the Retirement System will pay benefits directly to the Alternate Payee and Participant according to the following terms 1 and conditions: q a. It is the Participant and Alternate Payee's (collectively, the "Parties") intention and the order of this Court that effective upon approval of this Q DRO by the Plan, the Alternate Payee shall receive directly during the joint lifetime of the Parties a monthly benefit from the Retirement System e Participants monthly retirement benefit of % of the amount of th allowance, together with a pro rata share of any guaranteed automatic annual benefit increases; and that the monthly benefit the Participant would otherwise receive, but for this Order, shall be reduced by the sum paid directly to the Alternate Payee. Benefit distributions to the Alternate Payee under this DRO shall cease upon the death of the Participant or the Alternate Payee, whichever shall first occur. b. Nothing in Section 7a. of this DRO is intended, nor shall it alter or have any effect upon: (i) the right of the Alternate Payee to receive the "surviving spouse" benefits under the % survivor option of the Plan, provided that said option was elected or established by the Participant at the time of retirement, and at the time of retirement the Alternative Payee was the Participant's named spouse; or (ii) the right of the Participant to receive 100% of the Participant's benefit if hg/she survives the Alternate Payee. - C. Direct payments from the Plan to the Alternate Payee under Section 7a. shall commence as soon as possible following approval of this DRO under Section 9 and continue thereafter so long as Section 7a. remains in effect. d. If the Retirement System pays singbenefiit increase (i.e., non guaranteedannual increases, supplemental payments/13th checks, one-time increases) on the benefits being paid from the Retirement System during the Parties' joint life, the Alternate Payee shall receive directly % of each such increase that is paid on and after the date of this DRO. e. Effective as of the first payment made by the Retirement System directly to the Alternate Payee under Section 7a., the Alternate Payee shall include in his/her gross income, in the tax year of receipt, all retirement benefit distributions that he/she receives pursuant to the Participant's assignment of benefits under this DRO; and, accordingly, the Participant shall not include such benefit distributions in his/her gross income, The Alternate Payee shall be treated as the sole distributee under IRC Sections 72 and 402 of any payment or distribution that is made to him/her under the Participant's assignment of benefits under this DRO. The Participant shall be responsible for all income taxes accruing on the retirement benefit 1. distributions he/she receives directly from the Plan. 4 No provision of this DRO is intended, nor shall be construed, to require the Plan to do or incur any of the following: a, malce any payment or take any action which is inconsistent with any federal law, rule, regulation, or applicable judicial decision; b. provide any type or form of benefit, or any option, which is not otherwise provided for under the provision of the Plan; C. provide increased benefits; d. alter or amend the established survivor benefits of either Party, as selected and determined under the Plan by the Participant at the time of retirement; e, incur any greater cost or liability to the Retirement System or Plan than existed before the entry of this DRO; and/or, f, provide benefits to the Alternate Payee which are required to be paid to another Alternate Payee under anothorder previously s Order, or an Eligible Domesdti o be a DRO, a Qualified Domestic Relation Relations Order under 1991 PA 46, as amended. 9_ In the event the Plan or the designated Plan representative determines this order is not a Domestic Relations Order satisfactory to the Plan, the Participant and the Alternate Payee hereby agree, and shall submit to this Court, a request to modify this order to make it a Domestic Relations Order satisfactory and acceptable to the Plan and the designated Plan representative in such a manner that it will reflect the Parties' intent as herein expressed and thereafter enter an order modifying this order to comply with the Plan and related legislation. Said modified order will be entered nunc pro tun.c if appropriate to comply with laws and regulations. 10. In the event that the Participant, Alternate Payee, or any other person claiming a right under this DRO, makes a claim that the Plan or the designated Plan representative deems to be inconsistent with this DRO, the Plan may cease malting further payments to any person whose rights under the Plan, in the sole judgment of the designated Plan representative, may be affected by such claim, until the claim is resolved or until further order of a court of competent jurisdiction. The Plan may also take such further action as may be deemed d as may be permitted by law with respect to such claim. appropriate under the circumstances an 11. The Participant and the Alternate Payee agree to share equally and pay in advance any and all additional administrative and/or actuarial costs or fees incurred or required by the Retirement System to effectuate this DRO and each Party shall, upon request, perform any act and complete any form reasonably necessary to carry into effect the terms of this DRO. 12. In the event that the Retirement System makes any payment in fulfillment of this DRO to the Participant or the Alternate Payee, respectively, and it is subsequently determined that the payment should have been made to the other Party, the Parties agree that the Retirement System may adjust future payments between the Parties to correct the payments. 13. This DRO is issued pursuant to the laws of the State of Michigan relating to the division of marital property and alimony, specifically including MCL 552.18, MCL 552.101, and MCL 38.1684, which relate to the inclusion of retirement benefits in the marital estate and the determination of spousal rights with respect to such retirement benefits and Judgment of Divorce. COUNTERSIGNED: Deputy Court Clerk Hon. Circuit Judge 6 Approved as to form and content: k ) PLAINTIFF ATTORNEY FOR PLAINTIFF Dated: DEFENDANT Dated: Prepared by: (Attorney name) (P#) (Firm name) (address) (telephone) Dated: ATTORNEY FOR DEFENDANT Dated: TO CITY ATTOxNEY OPINION 07-03 OFFICE OF THE CITY ATTORNEY 717 MEMORANDUM is EMPLOYEES' RETIREMENT SYSTEM BOARD MEMBERS POLICEMEN'S AND FIREMEN'S RETIREMENT SYSTEM BOARD MEMBERS FROM: BRIG SMITH, Cl' RE: RETENTION OF DATE: FEBRUARY 22, 2007 BACKGROUND Recently, the Employees' Retirement System Board ("ERS Board") and the Policemen's and Firemen's Retirement System Board ("Police and Fire Board") considered the need for and means of hiring independent counsel. On January 15, 2007, I wrote the Chairs of each board to explain that if outside counsel is to be retained, it must be based on my Office's decision and under my Office's direction. I then met with each Board to elaborate on this letter. ERS Board Member Michael Murphy requested a formal opinion, which I hereby provide for each Board. QUESTION PRESENTED May the ERS Board or Police and Fire Board retain independent counsel absent the Office of the City Attorney determining that such a need exists and supervising such counsel? SHORT ANSWER No. The City Charter and the Boards' enabling ordinances provide that the City Attorney shall be legal advisor to the Boards and that neither Board shall retain independent counsel without first securing the approval of such retainer by the City Counsel, which shall act only after requesting the City Attorney's written opinion. Simply put, our Charter both envisions and demands that the City's advisory boards, like the ERS and Police and Fire Boards, should not and shall not be able to retain independent counsel. The City Attorney has the power and the duty to manage the legal affairs of the City and its boards. ANALYSIS The enabling ordinances for each Board state the City Attorney shall be their legal advisor.' The ERS ordinance states: "The City Attorney shall be legal advisor to the Board." Ord. 292.09(d). Likewise, the Police and Fire ordinance states: "The City Attorney shall be the legal advisor to the Board." Ord. 294.02(d)(3). There is no room for ambiguity in either 1 CITY ATTORNEY OPINION 07-03 ordinance: the City Attorney shall be the Boards' legal advisor. If there is a need for outside counsel, the City Attorney, and the City Attorney alone, shall determine it. In contrast to the enabling ordinances, which highlight the City Attorney's right and responsibility to manage the legal affairs of the City and its boards, the Charter downplays the Boards' ability to impinge on the City Attorney's legal mandate. Indeed, the Charter states that "[n]o board ... shall employ or retain special counsel in any matter... without first securing the approval of such employment or retainer by the City Council," which "shall act only after requesting the City Attorney's written opinion." Charter 4-304.6. Thus, the City Attorney— and only the City Attorney— can determine the need for and direct the use of special counsel. The Boards cannot unilaterally retain independent counsel; certainly not without an ordinance amendment and, even then, any amended ordinance would still have to comport with the City Charter and its delineation of the duties and powers of the Office of the City Attorney. In large measure, these are answers to hypothetical questions because no real dispute appears to exist. While the Boards have obliquely referenced a desire for quicker turnaround time or deeper substantive knowledge, they have not brought to my attention specific instances, and certainly should have done so rather than schedule a presentation by and send RFP's out for potential independent counsel for the Board. In short, if there is a problem, my Office needs to know about it so that it can address it. We remain committed to providing the Boards the legal services they need. Indeed, we are not adverse to bringing in outside firms to serve as specialists, and do so routinely, particularly in arcane or developing areas of law. Because no direct inquiry has been placed before us, we are left with the following suppositions, none of which compel the Boards to retain independent counsel against the prohibition of the City Attorney. I will summarize some of the more significant I have heard or anticipated: • The Role and Duty of Being a Fiduciary. Board members have a fiduciary duty to their Boards, which could conceivably leave them personally collectable. Because of this, they must have independent counsel for protection. Well, the City Attorney, as the Boards' legal advisor is clearly a fiduciary to the Boards, too, and faces the same type of exposure. We are all in the same, sound boat. • The Ability of the Boards' Members (and their Lawyers) to Adequately Change Their Hats when they Come to the Board. At the last joint meeting, the Boards voted to adopt the actuarial assumptions for their various retirement systems, even though this vote had potential negative implications for the Board members in their capacity as City officers. If members are concerned that the City Attorney cannot be objective in fulfilling his or her legally mandated duties to the Board, then the same must be true of every Trustee on the Board who wears two hats. If we could not rely on our trustees and their legal advisor to make these important calls, then none of us who wear two hats should sit on the board F) CITY ATTOxNEY OPINION 07-03 at all. That is certainly not what the enabling ordinances and our Charter have in mind. • All Advisory Boards Have Fiduciary Duties But None Of Them Have Independent Counsel. For instance, the Charter simply does not allow Planning Board members to retain independent counsel to advise them even though they routinely face contested zoning issues and complex takings claims (especially after Proposal 4). Similar concerns ring true for the Parks Board, the Public Service Board, and any number of other City boards. I do not doubt that Board Members will have additional questions, but my aim in this opinion is to provide definitive answers for the most important questions. More may arise, but the basic message will be the same: If the Boards expect to make the case that independent counsel, and their considerable hourly rates, are necessary, it must do so by making the case to the City Attorney, who will then consider such needs and act accordingly and promptly. CONCLUSION In short, while there may be need for outside counsel, it is the sole province of the City Attorney to determine such need and to direct such counsel. To read the Charter and enabling ordinances otherwise is to prevent any member who wears one hat with the City from wearing another hat with the Boards. This is not —and cannot be —what our ordinances envision and our Charter commands. cc: Jerry Ambrose Karen Williams 3 OFFICIAL PROCEEDINGS OF THE BOARD TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI r'2 G,J March 22, 2V07 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:39 a.m. Present: Antekeier, Dedic, Kraus (8:41), Murphy (8:44), Piloske, Singleton, Wood — 7. Absent: Trustee Bernero, Korkoske Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Brigham Smith, Law Department; John Jackson, George Tarlas, Asset Consulting Group; Robert Oleson, Mike Lewis, Fire Department; Bruce Holliday, Police Department. It was moved by Trustee Wood and supported by Trustee Kraus to accept the Employees Retirement System Regular Meeting of February 22, 2007 with amendments. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Singleton to accept the Joint Employees Retirement System and Police and Fire Retirement System Meeting Minutes of February 20, 2007. Adopted by the following vote: Unanimously Secretary's Report. 2 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 0 retired. Total active membership: 715. Total deferred: 37. Refunds made since the last regular meeting amounted to $2,469.45. Retirement allowances paid for the month of February, 2007 amounted to $ 1,445,116.73. Total retirement checks printed for the ERS System: 778. 1 death(s). Robert Beasley, (UAW), duty disability retired 3/19/2004, died 3/11/2007, age 47, no beneficiary. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Karen Williams informed the Board of Ms. Ann Vanacker's request for refund of accumulated contributions. Ms. Vanacker was not vested. She completed the required accumulation contributions form. Employees Retirement System Regular Meeting of March 22, 2007 page 2 It was moved by Trustee Kraus and supported by Trustee Dedic to approve the request for refund of the accumulated contributions of Ann Vanacker. Approved by the following vote: unanimously It was moved by Trustee Kraus and supported by Trustee Singleton to excuse Trustee Bernero and Trustee Korkoske. Adopted by the following vote: unanimously Karen Williams distributed material for Training and Education, the 2007 National Public Employees Retirement Fund Summit, April 15-17 and MAPERS Spring Conference in June. The deadline for submitting requests for MAPERS will be April 20, 2007. Jack Roberts distributed and reviewed the policy forthe Duty Disability Application process. Mr. Roberts advised the Board that it is beneficial to memorialize the steps in written form that are used to approve Duty Disability requests. Language from the Ordinance will be foot -noted in the Policy. It was moved by Trustee Wood and supported by Trustee Kraus to adopt the new Duty Disability Application Process Policy ad that is supersedes all other Duty Disability Application Process 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. Approved by the following vote: unanimously Trustee Wood updated the Board regarding the Outside Legal Counsel subcommittee. Trustee Wood overviewed the interview process and the participants. The Board discussed the legal authority to hire outside legal counsel. The Board also discussed using outside legal counsel for additional education. Trustee Kraus expressed concern that the outside legal counsel may expand beyond education and what happens if there is a conflict with the City Attorney's office. City Attorney Brigham Smith expressed his concerns that the Request for Information was prepared by one of the firms that was interviewed. Attorney Smith advised the Board that the City Attorneys office is legal counsel to the Board and would determine if outside legal counsel is needed. Attorney Smith advised the Board that if needed, the City Attorney's office could hire outside legal counsel from a pre -approved list of firms. The City Attorney reported to the Board that it cannot and should not vote on hiring an outside legal counsel. To do this would be ultra vires, that is beyond the authority of the Board. The City Attorney has expanded the search and mailed the Request for Information to the pre -approved City Council list of law firms and has asked for responses by the end of March. Employees Retirement System Regular Meeting of March 22, 2007 page 3 It was moved by Trustee Dedic and supported by Trustee Wood to hire Vanoverbeke, Michaud & Timmony, P.C. under the provision of Public Act 314 to assist and supplement the Baord legal counsel. The outside legal counsel firm's fees will be paid from the Securities Lending monies. Roll Call vote: Yeas: Antekeier, Dedic, Murphy, Piloske, Wood Nays: Kraus, Singleton Motion adopted. Trustee Wood announced that the Joint Health Care Subcommittee would meet April 13, 2007 at 1:00 p.m. Jerry Ambrose distributed and reviewed the Gabriel, Roeder, Smith and Company actuarial evaluation for transferring retirement funds for zoo employees to Ingham County. The Retirement System would transfer upon request by the City at the same level that it is funded at 85.9%. The City would transfer the remaining 14.1 %. Based upon the actuary report, the Board was assured that the transfer from the Retirement System would not have an adverse effect. Karen Williams reported to the Board regarding the Health Care Audit. Ms. Williams reviewed the process that Retirement Office used to send out notices for the Audit. A final notice will be mailed in April for retirees that have not responded to the request for information. The Retirement Office will review all potential dependents that my be removed from the health insurance. Attorney Brigham Smith distributed and gave an overview of the Trustee Handbooks prepared by the Law Department. The Handbook contained a top -down approach that includes governing legislations, ordinance, board procedures and policies. Trustee Kraus inquired regarding the Travel Policy. She requested that Trustees be supplied with the updated amendments to the travel policy at the next meeting. Jack Roberts suggested that Board members bring their Handbooks to each meeting so that it could be updated. Karen Williams updated the Board on the status of the Minute Master conversion. Both the Police and Fire Retirement System and the Employees Retirement System approved the conversion of minute master to electronic format. The Retirement Office has been in contact with Gabriel, Roeder, Smith and Company to begin the process this summer. George Tarlas of Asset Consulting introduced new consultant, Mr. John Jackson. Mr. Tarlas and Mr. Johnson distributed and reviewed the Investment Report. Employees Retirement System Regular Meeting of March 22, 2007 page 4 The meeting adjourned at 10:01 a.m. Minutes approved on 5- 17 12,007 Je (y Ambrose, Secretary Employees' Retirement System Robert Antekeier, Chairperson Employees' Retirement System CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM SPECIAL MEETING MINUTES Special Meeting Council Conference Room 10th Floor City Hall Lansing, MI The meeting was called to order at 8:35 a.m. r— " — =n c_ a ND N) P .- r'n 1� April 12, 20W —` Thursday, 8:30 a.m. to Antekeier Korkoske Kraus, Murphy, Piloske, Singleton, vvooa Trustees presen . , Trustee absent: Dedic, excused absence (vacation) Other presents: Karen Williams, Jerry Ambrose, Finance Department; Jack Roberts, Law Department. Trustee Wood asked that the Board to consider the impact of the transfer of retirement funds for the zoo employee to Ingham County. The City Council wanted the ERS Board's input regarding the transfer of retirement funds. Mr. Jerry Ambrose reviewed the actuarial evaluation letter prepared by Gabriel, Roeder, Smith and Company. The current funded ratio for the Employees Retirement System is 85.9%. The System would transfer the current ration and the City of Lansing general fund would fund the remaining 14.1 %. There would be no adverse effect on the Retirement System. It was moved by Trustee Wood and supported by Trustee Murphy to approve the following resolution: Resolved by the Board of Trustees of the City of Lansing Employees' Retirement System (ERS) That based on the actuarial evaluation letter prepared by Gabriel Roeder Smith and Company, the ERS accepts that the transfer of 85.9% of the funded retirement assets reported in the evaluation for the zoo employees should not have an adverse effect on the Retirement System. It was further recognized that the 14.1 % of the retirement funding for zoo employees who transfer to Ingham County is expected to be made from the City of Lansing general fund. Adopted by the following vote Yeas: Antekeier, Korkoske, Kraus, Murphy, Piloske, Singleton, Wood Nays: None Trustee Wood requested that a resolution be drafted that can be distributed and reviewed by City Council. Jack Roberts advised the Board to have the Retirement Office prepare a draft resolution that can be used until the official minutes are approved. The Board adjourned at 9:46 a.m. Special Meeting Council Conference Room 10th Floor City Hall Lansing, MI Minutes approved on 14 -1 a -2-00i Robert Antekeier, Chairperson Employees Retirement System April 12, 2007 Thursday, 8:30 a.m. Page 2 J rry Ambrose, Secretary Employees Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OFF', TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI April 19, 2007 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:38 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, Murphy (8:50), Piloske, Singleton, Wood - 7 Absent: Trustee Bernero, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. Jack Roberts requested amendments to the minutes regarding the outside legal counsel discussion. The Board asked for time to review the changes. It was moved by Trustee Wood and supported by Trustee Piloske to table the approval of the Official Minutes of the Employees Retirement System Regular Meeting of March 22, 2007. Adopted by the following vote: Unanimously It was moved by Trustee Korkoske and supported by Trustee Kraus to accept the Secial Employees Retirement System Meeting Minutes of April 12, 2007 with amendments. Adopted by the following vote: Unanimously Secretary's Report. 6 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 0 retired. Total active membership: 721. Total deferred: 37. Refunds made since the last regular meeting amounted to $10,097.22. Retirement allowances paid for the month of March, 2007 amounted to $ 1,438,319.20. Total retirement checks printed for the ERS System: 774. 3 death(s). Theodore J. Haskell, (Non Bargaining), retired 2/4/1977, died 2/20/2007, age 80, spouse to receive 50%; Curtis F. Holmes (Non -Bargaining), retired 9/29/1984, died 3/9/2007, age 82, no beneficiary; Lucille Keyes (Non -Bargaining), died 3/21 /2007, age 93, no beneificiary. Domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Kraus inquired regarding the death of Jerry Crittenden who was not included in the secretary's report. The Retirement Office will verify information on Mr. Crittenden and inform the Board next month. Employees Retirement System Regular Meeting of April 19, 2007 page 2 Jack Roberts advised the Board that he received a Domestic Relations Order sent directly to the City Attorney's Office. The Order specified the Police and Fire Retirement System and the employee was retired from the Employees Retirement System. Jack Roberts is working with the retiree's attorney, but did not receive the Order in time for the Secretary's report. The Board inquired about the process for deceased retirees' checks. Jack Roberts inquired about the process for pro -rating the deceased retirees' checks. Karen Williams clarified to the Board that checks can be pulled and are generally pro -rated for deceased retirees. It was moved by Trustee Dedic and supported by Trustee Korkoske to approve the following request for Regular Age and Service Retirement: Victor L. Lootens, Public Service (Waste Water), 19 years service, age 62, effective April 21, 2007 Approved by the following vote: unanimously It was moved by Trustee Dedic and supported by Trustee Murphy to excuse Trustee Bernero and Trustee Singleton. Approved by the following vote: unanimously Trustee Antekeier opened the floor for discussion regarding outside legal counsel. Trustee Dedic stated that at last month;s meeting the Board agreed to hire VanOverbeke, Michaud and Timmony. It was moved by Trustee Dedic and supported by Trustee Wood to enter into conversations with VanOverbeke, Michaud and Timmony to get a rate schedule and contract so that it can be reviewed by the City Attorney's Office. Trustee Wood offered a friendly amendment that the chair and vice chair communicate with VanOverbeke law firm and that the ERS Board would agree to a policy regarding the use of the outside legal counsel. Jack Roberts advised that it is the City Attorney's opinion and reiterated that the ERS Board is acting beyond its authority to vote on the motion and the action is ultra vires. Adopted by the following vote: 6 -1. Employees Retirement System Regular Meeting of April 19, 2007 page 3 Trustee Antekeier announced to the ERS board that the Retirement Office is in need of new recording equipment. The Board discussed and agreed to jointly purchase new equipment with the Police and Fire Retirement Board. Karen Williams will bring suggestions for the new equipment at next month's meeting. Trustee Wood discussed the Joint Health Care Subcommittee. The subcommittee has scheduled a meeting with Doug Rubley to review the ordinance and answer questions. The meeting was scheduled for April 30, 2007 at 11:00 a.m. Trustee Antekeier charged the Outside Legal Subcommittee with developing a policy for the use of outside counsel. Trustee Wood suggested inviting members of the Police and Fire Retirement System. Karen Williams reported to the Board regarding the Health Care Audit. Only retiree dependents will be eliminated from the health care for those retirees who did not respond to the audit. The Benefits Office will also be removing dependents based on the returned verification form. If a dependent is no longer listed on the verification form, they will be removed from the insurance. Each person removed will receive COBRA information. Karen Williams announced that May is Open Enrollment for retiree health insurance. During the month, retirees can make changes to their insurance. Jack Roberts provided updates to the Trustee Handbook and an overview of the updates. Karen Williams distributed and reviewed the Investment Report. Karen Williams announced that next month would be the time for the annual cash flow withdrawal. Asset Consulting recommends to the Board from which funds these monies are withdrawn. Trustee Wood inquired about the interest rate that the Board's check account is making. Trustee Korkoske reported that the rate was 5.1 % for monies other than what is used for payroll, which is kept in cash. The Board discussed moving to a quarterly cash flow withdrawal schedule. It was moved by Trustee Korkoske and supported by Trustee Kraus to move to a quarterly cash flow withdrawal schedule. Adopted by the following vote: unanimously Jack Roberts suggested that the Retirement Analyst contact Asset Consulting regarding when to begin the quarterly schedule and if it should be coordinated with the Police and Fire Retirement Board. Employees Retirement System Regular Meeting of April 19, 2007 page 4 The meeting adjourned at 11:16 a.m. Minutes approved on 5- 1 7- 07 Jer Amb ose, Secretary Employe ls' Retirement System obert Antekeier, Chairperson Employees' Retirement System CITY OF LANSING POLICE & FIRE and ERS RETIREMENT SYSTEM MINUTES Joint Meeting May 17, 2007 Council Conference Room Thursday, 9:30 a.m. 10th Floor City Hall Lansing, MI; The meeting was called to order at 9:35 a.m. A quorum of both boards were present. Trustees present: (Police & Fire), Holliday, Kraus, Lewis, Oleson, Wood, St. Aubio;, (ERS), Antekeier, Dedic, Korkoske, Kraus, Murphy Piloske, Wood W� Other presents: George Tarlas, John Jackson, Asset Consulting; Karen Williams, Finance Department, Tom Cochran, Fire Department; Nathan Baldermann, Rehman Robson; Karl L. Knas, NorthPointe Capital. Mr. Nathan Baldermann, Rehman Robson presented a review of the financial audit of the City of Lansing Police and Fire Retirement System and the Employees Retirement System for the Fiscal Year Ending June 30, 2007. The Police and Fire Retirement System Board presented a plaque to Tom Cochran in appreciation for his years of service to the Board. Mr. Karl L. Knas, NorthPointe Capital presented a portfolio review of the funds held by the Police and Fire and the Employees Retirement System. George Tarlas and John Jackson of Asset Consulting Group presented a quarterly review of investment performance results for the Employees Retirement System and The Police and Fire Retirement Systems. Asset Consulting Group also mentioned possible Hedge fund equity strategyto be discussed at a future meeting. The Employees Retirement System board discussed moving to a quarterly cash flow withdrawal system. It was moved by Trustee Korkoske and supported by Trustee Dedic that the Employees Retirement System would move to a quarterly cash flow withdrawal system to meet cash need. The withdrawal from funds would be based on recommendations from Asset Consulting and reported to the Board at their meetings. Adopted by the following vote: 6 — 0. The Boards recessed at 11:15 a.m. The Boards re -convened at 11:23 a.m. as the Subcommittee on Outside Legal Counsel Meeting. Trustee Wood suggested a policy based on who, what, when, how and why to use outside legal counsel. The Boards discussed issues that included, a person requesting outside legal counsel would need to submit the request to the Board in writing and responses should be in writing. The Boards suggested who is authorized to get in touch with outside legal counsel. The Boards agreed that the Board action would be needed to authorize Chair and Vice Chair to contact outside legal counsel. The meeting adjourned at 11:32 a.m. Minutes approved on 6 - 0-/— d 7 Robert Antekeier, Chairperson Employees Retirement System JerW kr bro`M, Secretary J v�� 1� Bruce Holliday, Chairperson Fire and Police Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF,_ TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI June 21, 2007 Thursday, 8:3:0 a.n The Board met in regular session and was called to order at 8:34 a.m. Present: Antekeier, Dedic, Korkoske, Kraus (8:38), Piloske, Singleton, Wood - 7 Absent: Trustee Bernero, Murphy Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith, Law Department. It was moved by Trustee Wood and supported by Trustee Dedic to approve the Official minutes of the Employees Retirement System Regular Meeting of May 17, 2007 as amended. Adopted by the following vote: 6-0. It was moved by Trustee Piloske and supported by Trustee Wood to accept the Joint Police and Fire Retirement System and the Employees Retirement System Meeting Minutes of May 17, 2007. Adopted by the following vote: 6-0. Secretary's Report. 2 new member(s), 0 reinstatement(s), 2 refunds(s), 0 transfers, 2 retired. Total active membership: 714. Total deferred: 37. Refunds made since the last regular meeting amounted to $7,530.28. Retirement allowances paid for the month of May, 2007 amounted to $ 1,446,393.05. Total retirement checks printed for the ERS System: 778. 2 death(s). Elizabeth Walker, (Non -Bargaining), retired 3/21/1981, died 3/12/2007, age 88, no beneficiary; Henry A. Newhouse (Non -Bargaining), retired 3/12/1977, died 5/1/2007, age 92, spouse to receive 100%. Domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of June 21, 2007 Page 2 It was moved by Trustee Dedic and supported by Trustee Korkoske to approve the following request for Regular Age and Service Retirement: Michelle Restainer, Human Resources (T580 CTP), from deferred, 13 years, 1 month, age 52, effective June 1, 2007. Marilyn D. Griffin, City Clerk's Office (Mayoral Staff), 21 years, 1 month, age 43, 11 months effective June 15, 2007. Dennis J. Sweeney, Parks -Zoo (UAW), 29 years, 9 months, age 52 effective June 30, 2007. Approved by the following vote: 7 — 0. Karen Williams reported to the Board the requests for Refund of Accumulated Contributions of Mr. Matthew A. Dingman, Erin Anderson and Caryn Devaney. The requests were notarized and each member informed regarding receiving their refunds. It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Trustee Bernero and Trustee Murphy. Approved by the following vote: 7 — 0. Karen Williams announced information regarding the MAPERS events and fall conference, September 16-18, 2007. The International Foundation Annual Conference will be in November. Karen Williams distributed the Gabriel, Roeder, Smith (GRS) Actuarial Contract and fees for the 2007/2008 fiscal year. Trustee Wood reported that the Police and Fire Retirement Board asked for a detailed billing regarding the fees listed in the letter. The Board discussed the differences between the fees for Police and Fire and the Employees Retirement system Board. It was moved by Trustee Wood and supported by Trustee Dedic to join with the Police and Fire System and have Gabriel, Roeder and Smith present a detailed review of their billing and scope of their services before the fees are approved at the joint meeting in August. Adopted by following vote: 7-0. Employees Retirement System Regular Meeting of June 21, 2007 Page 3 Karen Williams updated the Board regarding the Duty Disability outside income verification. There were two duty disabilities retirees that have not sent in their verification form. The retirees have received a second notice and have until June 29 to send in requested information. Trustee Wood reported that the Police and Fire Board discussed the Duty Disability income verification process. The Board discussed duty disability retirees sending in tax returns forms to verify their income. The disability subcommittee will review the current process and forms. It was moved by Trustee Wood and supported by Trustee Piloske for the Employees Retirement System Disability Subcommittee to meet jointly with the Police and Fire Disability Subcommittee to review the current wage verification reporting process and revise the certification form. Adopted by the following vote: 7-0 Jack Roberts updated the Board regarding the request for investment information by a professor of finance from Oklahoma State University. The Retirement Office supplied a copy of 2005 Investment Year -End Reports. Attorney Roberts found information forthree years of previous reports and forwarded them, as requested. Trustee Wood reported to the Board that she is working on the Policy for Outside Legal Counsel and will have it available for the next meeting. City Attorney Brigham Smith updated the Board regarding Outside Legal Counsel. Attorney Smith completed interviews for three firms that submitted Request for Information proposals and were on the City Council's pre -approved list, Clark Hill, Foster Swift and Dykema Gossett. Attorney Smith planned to proceed with retaining Clark Hill as outside legal counsel for the Employees and Fire Retirement System. Attorney Smith provided a summary of their qualifications. He reiterated his position that the Board's action to hire outside legal counsel was ultra vires. The Board inquired to the City Attorney regarding how Clark Hill will be paid. Attorney Smith stated that the costs will be paid from the City's general fund. Trustee Wood stated that it was her understanding that the Board asked for VanOverbeke, be added to list. City Attorney Smith reported that he contacted George Tarlas of Asset Consulting. He informed the Board that George Tarlas stated that he was asked by the Board to provide names for outside legal counsel. He provided one name and VanOverbeke. VanOverbeke provided the Request for Information Proposal and the MAPERS member firms. Employees Retirement System Regular Meeting of June 21, 2007 Page 4 Attorney Brigham Smith reported to the Board that he is researching what process can be taken if the Board and the City Attorney's Office disagree over decisions that are made by legal counsel. Attorney Smith informed the Board that there is no internal mechanism to change this authority, outside of litigation. Attorney Smith will report to the Board the results of his research at the next meeting. Trustee Korkoske reported that he spoke with the City of Flint regarding a similar situation where litigation was brought due to disagreements regarding retaining outside legal counsel by their retirement system. Trustee Korkoske informed that Board that City of Flint Retirement Board lost the decision. Trustee Wood discussed the Joint Health Care Subcommittee. The subcommittee will receive a report from Alan VanGorder. The next meeting was scheduled for June 22, 2007 at 1:00 p.m. Turstee Wood reported that the Police and Fire Board discussed legislation that caps state retiree benefit levels and legislation that would tax retirement pension. Trustee Wood asked that a resolution be sent to Lansing elected state officials that the City of Lansing Retirement system opposes the proposed legislation. It was moved by Trustee Wood and supported by Trustee Lewis to prepare a letter to oppose legislation that caps state retiree benefits, and legislation that would tax retirement pensions to be sent to Lansing area elected state officials. Adopted by the following vote: 7-0 Karen Williams distributed and reviewed the May Investment Report. Karen Williams reported to the Board regarding monies to be withdrawn for Cash Flow Needs. There will be $2 million dollars withdrawn from BGI and $2 million from the Northern Trust Investment for the Quarterly withdraw. Karen Williams discussed the Securities Lending cash flow needs. The Retirement Office recommends $50,000 for the upcoming fiscal year to cover administrative needs for the Police and Fire Board expenses. Trustee Korkoske recommended a separate accounting for Security Lending Expense Account in the general ledger. At the end of year, money will be moved from Security Lending to reimburse the fund. Trustee Wood suggested a policy and an accounting report to presented to the Board on an annual basis. Employees Retirement System Regular Meeting of June 21, 2007 Page 5 It was moved by Trustee Wood and supported by Trustee Korkoske to approve the creation of a policy and provide an annual financial report to the Board, annually. Adopted by the following vote: unanimously Trustee Korkoske explained that outside legal counsel was used to assist with setting up the Federal Identification number for the Employees Retirement System. Tom Korkoske will be submitting a bill for $175 to be paid from Securities Lending Account. It was moved by Trustee Wood and supported by Trustee Kraus to withdraw $50,000 from the Securities Lending Account for Board administrative expenses. Adopted by the following vote: unanimously Trustee Wood requested that a report of the last two years of the Securities Lending Account be presented to the Board. It was moved by Trustee Wood and supported by Trustee Kraus to pay $175 for the outside legal counsel that was used for the Federal Identification number. Adopted by the following vote: unanimously The meeting adjourned at 9:34 a.m. Minutes approved on I 19 10 Robert Antekeier, Chairperson Employees' Retirement System rg Arftrose, Secretary plo es' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF?'; :4 TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM ' Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 19, 2007'-`.. Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:35 a.m. Present: Antekeier, Dedic, Korkoske, Murphy (8:51), Piloske, Wood - 6 Absent: Trustee Bernero, Kraus, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith, Law Department; Ruby White, retiree; Carol Walton, Human Resources; Faith Rach, Public Service; Mike Parker, Teamster Union Representative; John Schneider, Paul Novak, Clark Hill, PLC. It was moved by Trustee Dedic and supported by Trustee Pilosk6 to approve the Official minutes of the Employees Retirement System Regular Meeting of June 21, 2007. Adopted by the following vote: 5-0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 3 retired. Total active membership: 710. Total deferred: 36. Refunds made since the last regular meeting amounted to $5,278.55. Retirement allowances paid for the month of June, 2007 amounted to $ 1,458,641.60. Total retirement checks printed for the ERS System: 780. 1 death(s). Marion Howell, died 6/19/2007, age 94, spouse of non - bargaining retiree. 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 Korkoske to approve the following request for Regular Age and Service Retirement: Randy A. Merritt, Public Service (UAW), 25 years, 11 months, age 50, effective July 2, 2007. Janice M. Brigham, Parks -Zoo (UAW), 31 years, 5 months, age 53 effective July 1, 2007. Approved by the following vote: 5 — 0. Employees Retirement System Regular Meeting of July 19, 2007 Page 2 Karen Williams reported to the Board the requests for Refund of Accumulated Contributions of Mr. Matthew A. Dingman, Erin Anderson and Caryn Devaney. The requests were notarized and each member informed regarding receiving their refunds. It was moved by Trustee Wood and supported by Trustee Dedic to excuse Trustee Murphy. Approved by the following vote: 5 — 0. Trustee Murphy arrived at 8:51 a.m. Karen Williams announced information regarding the MAPERS events and fall conference, September 16-18, 2007 and the International Foundation Annual Conference will be November 4-7. Karen Williams updated the Board regarding the Duty Disability outside income verification. There was one outstanding duty disability retiree that had not sent in a verification form. The Board discussed the nature of the outstanding paperwork and also discussed the income verification reporting process. The retiree will receive a final notice to send in requested information. Trustee Wood distributed a draft for the outside legal counsel policy. The Joint subcommittee for outside legal counsel policy will meet and discuss the policy before next month's weekend. Attorney Brigham Smith distributed City Attorney Opinion 07-10 regarding the Process for Litigation Dispute over Retention of Special Independent Counsel. City Attorney Brigham Smith reviewed the Opinion with the Board and advised the Board that the finance department would be instructed not to release funds to pay for outside legal counsel chosen by the Board. The Retirement Board would then need to bring litigation in Circuit Court. The City Attorney would recuse himself from representing either side. Attorney Smith retained Clark Hill as outside legal counsel for the Employees Retirement System Board. The retention of the firm is currently coming from City general funds. Trustee Murphy inquired to the Board about having the State Attorney General interpret the legal authority of the City Attorney regarding outside legal counsel. Trustee Wood reviewed the reasons that the ERS Board sought obtaining outside legal counsel. Trustee Wood noted that the ERS Board wished to have additional educational sources and that the ERS Board asked that VanOverbeke be included in the process. Employees Retirement System Regular Meeting of July 19, 2007 Page 3 Trustee Dedic inquired about the legal authority of the City Attorney to hire Clark Hill. Attorney Smith informed the Board that it was City Attorney's decision. Jack Roberts advised that the process to search for outside legal counsel was initiated by the Board. Trustee Antekeier granted Mike Parker, Teamster 580, an opportunity to make a statement to the Board regarding the retention of independent counsel. Mr. Parker expressed concern regarding possible litigation that would be required if the Board chose to pursue the retention of VanOverbeke, Michaud & Timmony on behalf of the members of the retirement system, and challenge the retention of Clark Hill. Attorney Smith clarified to the public that the City Attorney is a fiduciary to the retirement system fund. The City Attorney's also clarified that litigation would be initiated by Board against the City Attorney to release funds for outside legal counsel. The City Attorney's opinion is not that of the Administration. Trustee Murphy requested a five-minute recess. The Board recessed at 9:25 a.m. The Board reconvened at 9:31 a.m. The Board discussed Trustee Murphy's suggestion to contact the Attorney General's Office to request an opinion regarding the City Attorney's authority regarding outside legal counsel. The Board discussed contacting the Lansing state senator and representatives by letter to assist with the request to the State Attorney General Office. It was moved by Trustee Murphy and support Trustee Dedic to request an Attorney General Opinion regarding the City Attorney's authority regarding outside legal counsel. Adopted by the following vote: 6 — 0. Trustee Wood distributed a proposed ordinance to designate another individual to act on the Mayor's Behalf on the Employee's Retirement System Board. Trustee Wood requested an official opinion for the ERS Board to take back to City Council. The Board requested an explanation regarding the proposed ordinance change from the administration. Trustee Murphy also requested information regarding the background of the ERS Board' composition. Jack Roberts distributed and explained updates for the Trustee Books. Employees Retirement System Regular Meeting of July 19, 2007 Page 4 It was moved Trustee Dedic and supported by Trustee Wood to send the chairperson to the International Foundation 53d U.S. Annual Employee Benefits Conference in Anaheim, California, Sunday, November 4-7. Adopted by the following vote: 6 - 0. City Attorney Brigham Smith distributed information from Clark Hill. Trustee Wood reported that the Police and Fire Board discussed the Duty Disability income verification process. The Board discussed duty disability retirees sending in tax returns forms to verify their income. The disability subcommittee will review the current process and forms. Trustee Wood discussed the Joint Health Care Subcommittee. The subcommittee discussed ideas to have educational material regarding the health care process and prescription drug coverage. The next meeting was scheduled for July 27, 2007 at 1:00 p.m. Karen Williams distributed and reviewed the June Investment Report. Karen Williams previewed the Securities Lending Expense Report that will detail administrative costs for the Employees Retirement Board expenses. Trustee Wood expressed concern that administrative expenses be paid out of Securities Lending and shown on the monthly report. Trustee Korkoske reviewed the current accounting process for how administrative costs are paid. The meeting adjourned at 10:01 a.m. Minutes approved on C)-2-,3-011 zz Robert Antekeier, Chairperson Employees' Retirement System OJAA,l Jer A brose, Secretary E rployees' Retirement System i I I OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 31, 2007 Tuesday, 8:30 a.m. The Board met in regular session and was called to order at 8:37 a.m. Present: Trustees Holliday, Kraus, Lewis, Oleson, St. Aubin (8:49), Wood — 6. Absent: Trustee Bernero. Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith,. Law Department; Marie Rosicky, Fire Department; Paul Novak, Blair Renfrew, Clark Hill, Law Office. The Board did not have a quorum so the chairman requested the board act on items,that did not require a vote. _ Secretary's Report. 7 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 484. 2 death(s). Robert R. Redburn, Fire, died 5/14/2007, age 85, no beneficiary; Betty R. Simons, Police, died 6/5/2007, age 77, spouse of retiree. Refunds made since the last regular meeting amounted to $ 0. Retirement allowances paid for the month of June, 2007 amounted to $1,704,959.58. Total retirement checks printed for the P&F System: 619. Total retirement checks printed for both systems: 1399. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Jack Roberts advised the Board that Karen Williams will check with Human Resources for the status of Mr. Frank Holmes' Functional Capacity Evaluation. Karen Williams updated the Board on upcoming MAPERS Fall Conference, September 16- 18 and the International Foundation 53rd U.S. Annual Employee Benefits Conference that will be held in Anaheim, California. Ms. Williams informed the Board that a vote is needed to send the Chairperson and more than two members to the International Foundation conference. Trustee Holliday stated that a vote will be held at next meeting for members who would like to attend. Trustee Holliday also announced the annual Guns and Hoses Conference. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 31, 2007 Tuesday, 8:30 a.m. Page Two Karen Williams updated the Board regarding the Duty Disability outside income verification. There were four duty disabilities retirees that have not sent in their verification form. Karen Williams read the second notice that was mailed to retirees. Jack Roberts read and advised the Board regarding the Duty Disability Income Verification Policy. The Board asked that a final notice will be a certified mail with a due date of August 30. At that time, if the certifications have not been received, the retiree pension will be suspended until the certifications have been received. It was moved by Trustee Kraus and supported by Trustee Lewis to approve the Official Minutes of the Police and Fire Meeting of June 19, 2007 as submitted. Adopted by the following vote: 5 — 0. It was moved by Trustee Oleson and supported by Trustee Kraus to approve the Official Minutes of Special Police and Fire System Meeting of July 3, 2007 as submitted. Adopted by the following vote: 5 — 0. It was moved by Trustee Lewis and supported by Trustee Oleson to approve the application for Regular Age and Service for the following members: Marvin Helmker, Fire Department, 25 years, 1 month service, age 48, effective August 8, 2007. Michael Jones, Fire Department, 25 years service, age 48, effective August 19, 2007. Paul Colegrove, Fire Department, 25 years service, age 52, effective August 11, 2007. Brian Crawford, Fire Department, 25 years service, age 49, effective August 16, 2007. John J. Donovan, Fire Department, 25 years service, age 54, effective August 3, 2007 Adopted by the following vote: 5-0. Trustee Holliday updated the Board on the status of Mr. Lamarr Bowers's request for Duty Disability. Mr. Bowers could not get an appointment to see the Board Medical Director before his surgery and therefore he may be listed as pended for a time on the Agenda until he can be successfully scheduled to see Dr. Roth. Karen Williams read Ms. Marie Rosicky's request for Duty Disability. The Board recessed at 9:05 a.m. for the Disability subcommittee to meet to discuss Ms. Rosicky's request. The subcommittee met and the Board re -convened at 9:06 a.m. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 31, 2007 Tuesday, 8:30 a.m. Page Three The Duty Disability subcommittee recommended that Ms. Rosicky be sent to the Board's Medical Director. It was moved by Trustee Lewis and supported by Trustee Oleson to send Ms. Rosicky to the Board's Medical Director for Duty Disability evaluation. Adopted by the following vote: 5 — 0. Karen Williams distributed the draft of the outside legal counsel policy. Trustee Holliday inquired if the policy would be brought to a joint subcommittee for review. Karen Williams distributed City Attorney's Opinion 07-10 detailing the process for litigating disputes over retention of special independent counsel. City Attorney Brigham Smith reviewed the Opinion 07-10 with the Board regarding Outside Legal Counsel. Attorney Smith advised the Board the finance department would be instructed not to release funds to pay for outside legal counsel chosen by the Board. The Retirement Board would then need to bring litigation in Circuit Court. The City Attorney would recuse himself from representing either side. Attorney Smith retained Clark Hill as outside legal counsel for the Police and Fire Retirement System. The retention of the firm is currently coming from City general funds. Attorney Smith updated the Board about Trustee Murphy's inquiry at the Employees Retirement System Board. Trustee Murphy inquired if the Attorney General Office could give an opinion. Attorney Smith reviewed the process for requesting an Attorney General Office opinion. Trustee Holliday inquired a similar retirement case regarding outside legal counsel in Flint, Michigan. Attorney Paul Novak, Clark Hill addressed the Police and Fire Board to introduce legal counsel and presented a summary of their services and qualifications. Attorney Novak distributed information packets regarding Clark Hill services. Karen Williams announced that Gabriel, Roeder, Smith (GRS) will be at the next Joint meeting to review their actuarial Contract, fees and scope of services for the 2007/2008 fiscal year. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 31, 2007 Tuesday, 8:30 a.m. Page Four Karen Williams informed the Board that the Retirement Office will start gathering minutes for the Gabriel, Roeder, Smith (GRS) Minute Master conversion to electronic form. Ms. Williams reviewed the projects and expressed concerns regarding locating the Official Board Minutes before 1998. Board Trustees suggested searching the Finance Director records and the City Clerk. Jack Roberts explained to Board Members how the current Minute Master book is constructed. The book has excerpted Minutes from 1944 to the present time. Karen Williams distributed and discussed the June Investment Report and Security Lending Report. Ms. Williams discussed the Securities Lending cash flow to cover administrative needs for the Police and Fire Board expenses. Karen Williams requested direction or clarification of expenses that belong to the Security Lending Account. Karen Williams read a letter from one of the Board's fund manager, NorthPointe Capital. Ms. Williams explained that copies of the letter were forwarded to Asset Consulting and Legal Counsel for review. Trustee Lewis asked that the minutes reflect that the Board wished to recommend an excused absence for Trustee Wood at the next meeting. The meeting adjourned at 9:49 a.m. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Bruce Holliday, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI August 23, 2007 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:38 a.m. Present: Antekeier, Dedic, Korkoske, Murphy (8:45), Piloske, Wood - 6 Absent: Trustee Bernero, Kraus, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith, Law Department; Blair Renfrew, Clark Hill, PLC. It was moved by Trustee Dedic and supported by Trustee Piloske to approve the Official minutes of the Employees Retirement System Regular Meeting of July 19, 2007 with corrections. Adopted by the following vote: 6-0. Secretary's Report. 2 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 2 retired. Total active membership: 710. Total deferred: 37. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of July, 2007 amounted to $ 1,465,827.13. Total retirement checks printed for the ERS System: 781. 2 death(s). Robert Bell, (NonBargaining), retired 10/2/1992, died 6/22/2007, age 78, spouse to receive 100%; James D. Hixson (UAW), retired 7/19/1997, died 7/17/2007, age 67, spouse 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 Korkoske to approve the following request for Regular Age and Service Retirement: David F. McGinnis, Planning & Neighborhood Development (Teamsters 580), 13 years, 9 months, age 67, effective September 29, 2007. Approved by the following vote: 6 — 0. Employees Retirement System Regular Meeting of August 23, 2007 Page 2 Karen Williams reported to the Board the requests for Refund of Accumulated Contributions of Mr. Noah Bradow. The request was notarized and Mr. Bradow was informed regarding receiving their refunds. Karen Williams distributed information regarding the MAPERS events and fall conference, September 16-18, 2007. It was moved by Trustee Dedic and supported by Trustee Korkoske that more than two members of the Board can attend the Due Diligence Meeting to Asset Consulting in Missouri. Adopted by the following vote: unanimously Karen Williams updated the Board regarding the Duty Disability outside income verification. There was no outstanding duty disability retiree that had not sent in a verification form. The ERS duty disability retirees had no adjustments necessary and there were two retirees that converted to Regular Age and Service at age 60. Trustee Wood discussed the Joint Health Care Subcommittee. The subcommittee discussed ideas to have an educational health care conference for retirees and employees. In the spring. Alan Van Gorder will be asked back to the subcommittee for his input on the health care conference. Trustee Piloske requested that Operational Audit remain on the pending agenda. Trustee Wood reviewed the Outside Legal Counsel Policy. Jack Roberts advised the Board and reiterated the City Attorney's previous opinions regarding outside legal counsel. It was moved by Trustee Wood and supported by Trustee Murphy to adopt the new Outside Legal Counsel Policy and that it supersedes all other Outside Legal Counsel 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: 6-0. The Board discussed the Proposed Ordinance change to designate another individual to act on the Mayor's Behalf on the Employees' Retirement System Board. Trustee Wood reported to the Board that the ordinance change is in the City Council's Ways and Means Committee and would like the Board for a recommendation. Employees Retirement System Regular Meeting of August 23, 2007 Page 3 Jack Roberts advised that the ex-officio members of the Board are not subject to requirement in the Ordinance that if a member has three unexcused absences from meetings, that member would be subject to termination from the Board. The Board expressed concern that there is consistency with the Mayor's designee. The discussion was tabled and the Board requested that the Retirement Office contact the Administration to provide an explanation regarding the ordinance change. Karen Williams distributed and reviewed the July Investment Report. The Board reviewed the Securities Lending Expense Report that will detail administrative costs for the Employees Retirement Board expenses. The Retirement Office requested direction on what expenses should be paid out of Securities Lending and shown on the monthly report. Trustee Wood recommended that the securities lending account reimburse the general retirement funds with the prevailing interest rate at the time. Trustee Korkoske reviewed the current accounting process for how retirement costs are paid. The Board recommended a joint subcommittee to review which costs should be paid out of Securities Lending Account. The discussion was referred to the investment committee to develop a policy. It was moved by Trustee Dedic and supported Trustee Wood to move Doug Rubley charges from Contractual Services to Securities Lending. Adopted by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee Dedic to pay $13,070.54 plus the prevailing interest at the time from Securities Lending accountto the general retirement funds for fiscal year 2005. Adopted by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee Korkoske to pay $10,615.20 plus the prevailing interest at the time from the Securities Lending account to the general retirement funds for fiscal year 2006. Adopted by the following vote: unanimously Employees Retirement System Regular Meeting of August 23, 2007 Page 4 It was moved by Trustee Wood and supported by Trustee Dedic to pay $17,231.78 plus the prevailing interest at the time from the Securities Lending Account to the general retirement funds at the time for fiscal year 2007. Adopted by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee Dedic to move Dr. Roth charges from Securities Lending to Contractual Services. Adopted by the following vote: unanimously Jack Roberts requested that the Board discuss at a future meeting Eligible Domestic Relations Orders. The meeting adjourned at 9:49 a.m. Minutes approved on 9-976) —d 7 \ �xgrry AbroYe, Secretary /E,(nployees' Retirement System Robert Antekeier, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI September 20, 2007 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:37 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, Piloske, Wood - 6 Absent: Trustee Bernero, Murphy, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith, Law Department; Paul Novak, Clark Hill, PLC. It was moved by Trustee Korkoske and supported by Trustee Dedic to approve the Official minutes of the Employees Retirement System Regular Meeting of August 23, 2007. Adopted by the following vote: 6-0. It was moved by Trustee Dedic and Trustee Wood to approve the Official Minutes of the Joint Police and Fire and the Employees Retirement System Meeting of August 21, 2007. Adopted by the following vote: 6-0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 0 retired. Total active membership: 708. Total deferred: 37. Refunds made since the last regular meeting amounted to $4,088.23. Retirement allowances paid for the month of August, 2007 amounted to $ 1,463,864.87. Total retirement checks printed for the ERS System: 780. 1 death(s). Thomas E. Spencer, (Teamsters 580 CTP), retired 1/5/1993, died 8/19/2007, age 64, 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 Korkoske to approve the following request for Regular Age and Service Retirement: Juan A. Noyola, Parks (Teamsters 580 Supervisory), 27 years, 6 months, age 52, effective August 14, 2007. (Non -Duty Death) Employees Retirement System Regular Meeting of September 20, 2007 Page 2 Jack Roberts reported to the Board the provisions for a Non -Duty Death retirement. Attorney Roberts explained the difference between Duty Death and Non -Duty Death retirement in relation to the refund of accumulated contributions. Approved by the following vote: 6 — 0. Karen Williams reported to the Board the requests for Refund of Accumulated Contributions of Ms. Nicole Duling. The request was notarized and Ms. Duling was informed of the ordinance regarding receiving the refunds. Trustee Kraus also talked with Ms. Duling regarding her options. It was moved by Trustee Kraus and supported by Trustee Wood to excuse Trustee Murphy from the meeting. Adopted by the following vote: unanimously Karen Williams reported to the Board regarding the Due Diligence Visit for Asset Consulting, Missiouri. The visit was scheduled for Tuesday, October 9 and members will return Wednesday, October 10. Ms. Williams reviewed the flight arrangements. Trustee Wood reported to the Board regarding the proposed ordinance to designate another individual to act on the Mayor's behalf on the Employee's Retirement System Board. Trustee Dedic asked that the record reflect that he does not support the ordinance and the Mayor should be at the meetings. Trustee Wood inquired to the Retirement Office if the Mayor's office had asked for the meeting dates or times to be changed to accommodate the Mayor's schedule. The Retirement Office had not been contacted requesting a change in the meeting schedule. It was moved by Trustee Dedic and supported by Trustee Wood to not recommend its support to the City Council for the Proposed Ordinance to designate another individual to act on the Mayor's behalf on the Employee's Retirement Board System. The Board discussed making an attempt to accommodate the Mayor's schedule. The ERS Board discussed making their decision consistent with what the Police and Fire Board. Trustee Dedic withdrew his motion. Trustee Antekeier asked that the Proposed Ordinance be placed on the Joint Board Meeting Agenda for November. Trustee Wood discussed the Joint Health Care Subcommittee. The subcommittee discussed having Alan Van Gorder attend the next scheduled meeting. Trustee Wood also suggested a visit to Grand Rapids to discuss their health care. Trustee Piloske requested that Operational Audit remain on the pending agenda. Employees Retirement System Regular Meeting of September 20, 2007 Page 3 Jack Roberts advised the Board that he has received a copy of the Gabriel, Roeder, Smith and Company contract and was reviewing the fees. Jack Roberts reported to the Board regarding a concern he received about a financial hardship for employees who are going through divorce to pay the Eligible Domestic Relations Orders fees. Jack Roberts suggested to the Board to review and focus the fees Trustee Antekeier suggested that the Boards have a representative from Gabriel, Roeder, Smith and Company to present a detailed listing of all fees. Trustee Antekeier reported to the Board that he would contact the chair of the Police and Fire Retirement Board to scheduled a Joint Meeting and have the actuary attend the meeting. Karen Williams distributed and reviewed the August Investment Report. Karen Williams reported to the Board regarding the quarterly cash withdrawal: $700,000 from ING/Clarion, $600,000 from Julius Baer, $1.7 million from UBS Brinson. Karen Williams reviewed the Securities Lending Report and provided a revised July 2007 report, with retroactive adjustments to pay expenses for FY 2005, 2006 2007. Trustee Korkoske reported to the Board regarding the Joint Securities Lending Account Subcommittee. Trustee Korkoske reviewed a draft policy that the subcommittee discussed. It was moved by Trustee Wood and supported by Trustee Dedic to withdraw $20,000 from Northern Trust to the Securities Lending account for Board Administrative Operating Expenses. Adopted by the following vote: unanimously The meeting adjourned at 9:48 a.m. Minutes approved on J VJy Ambrose, Secretary Oployees' Retirement System Robert Antekeier, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI October 18, 2007 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, Piloske, Wood (8:33) - 5 Absent: Trustee Bernero, Kraus, Murphy, Singleton Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Vlair Renfrew, Clark Hill, PLC. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 0 retired. Total active membership: 708. Total deferred: 37. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of September, 2007 amounted to $1,468,818.60. Total retirement checks printed forthe ERS System: 782. 4 death(s). Charlotte L. Moyer, died 7/24/2007, age 78, spouse of Ben Brown (NonBargaining); Charles E. Kent, (District Court), retired 8/22/1984, died 8/5/2007, age 88, no beneficiary; Rose Stull, died 9/4/2007, age 90, spouse of Lloyd (Nonbargaining); Nancy A. Taylor (911), retired 3/4/1976, died 9/30/2007, age 94, no beneficiary. 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 Official minutes of the Employees Retirement System Regular Meeting of September 20, 2007. Adopted by the following vote: 5-0. It was moved by Trustee Wood and supported by Trustee Dedic to approve the following request for Regular Age and Service Retirement: David W. Neil, Public Service (Teamsters 580), 25 years, age 52, effective October 6, 2007. Approved by the following vote: 5— 0. Employees Retirement System Regular Meeting of October 18, 2007 Page 2 Karen Williams reported to the Board the requests for Refund of Accumulated Contributions of Ms. Laura L. Sisco. The request was notarized and Ms. Sisco was informed of the ordinance regarding receiving the refunds. It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Trustee Murphy from the meeting. Adopted by the following vote: unanimously Karen Williams requested approval forthe International Foundation Employee Benefit Plan membership fees. The fee is $625 and is equally divided between the Employees Retirement System and the Police and Fire Board annually. It was moved by Trustee Wood and supported by Trustee Korkoske to split the cost with the Police and Fire Retirement system to renew the International Foundation of Employee Benefit Plans Membership Fee. Adopted by the following vote: 5-0. Trustee Dedic provided a report from the Due Diligence visit to Asset Consulting. The staff from Asset Consulting provided an overview of the organization operations. Asset Consulting introduced trustees to new members of the Consulting staff and reviewed their software and how investments are selected. Trustee Wood reported to the Board regarding the Joint Health Care Subcommittee Report. Mr. Alan Van Gorder was in attendance and the subcommittee talked about prescription health care. The subcommittee was provided with information regarding the percentage of generic versus brand name drugs for Blue Cross/Blue Shield. Trustee Wood has contacted Grand Rapids regarding a visit to look at their program. The Employees Retirement Board discussed the Gabriel, Roeder, Smith and Company fees that were reviewed at a joint meeting with the Police and Fire Retirement System. Trustee Wood requested clarification regarding the Eligible Domestic Relations Fees. She inquired if the EDRO fees were under a separate contract. The Retirement Analyst responded that the EDRO Fees are approved separately by the Board. Karen Williams also provided information regarding EDRO fees from phone calls that were made at the request of the Board. Jack Roberts reviewed the fee for EDRO certification and recommended that another supplier not be used for the certification. Attorney Roberts suggested that only the calculation fee be researched. Employees Retirement System Regular Meeting of October 16,, 2007 Page 3 It was moved by Trustee Dedic and supported by Trustee Wood to accept the Gabriel, Roeder, Smith and Company Fees for fiscal year 2008. Adopted by the following vote: 5-0. Trustee Wood suggested that a letter be prepared to send to suppliers regarding calculation of EDRO fees. Attorney Roberts suggested that the Retirement Office review the number of EDROs processed over the last year to indicate to suppliers the possible amount of EDROs calculations that would be requested. Trustee Piloske requested that Operational Audit remain on the pending agenda. Karen Williams distributed and reviewed the October Investment Report and Securities Lending Account. Karen Williams reviewed the proposed Conversion of UBS RESA and UBS Trumbull Property Fund LP. The UBS Investment Management Team requested a letter of conversion agreement signed by the Board chair. Ms. Williams reported to the Board that legal counsel and Asset Consulting reviewed the documents. George Tarlas recommended that the conversion agreement be signed and returned to UBS. Mr. Tarlas is drafting a formal letter. Ms. Williams read the conversion letter to the Board for the official record. It was moved by Trustee Dedic and supported by Trustee Korkoske that the conversion agreement be signed and executed to continue the investment with UBS RESA and UBS Trumbull Property Fund pending a letter of recommendation for George Tarlas, Asset Consulting Group. Adopted by the following vote: unanimously The meeting adjourned at 9:39 a.m. Minutes approved on i/ /S - C ► Jury Ar bt6se, Secretary E�ployees' Retirement System Robert Antekeier, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI November 15, 2007 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:35 a.m. Present: Antekeier, Dedic, Korkoske (8:50), Kraus, Murphy (9:08), Piloske, Singleton (8:40) Wood - 8 Absent: Trustee Bernero Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Law Department; Blair Renfrew, Clark Hill, PLC.; John Jackson, Asset Consulting. It was moved by Trustee Wood and supported by Trustee Piloske to approve the Official minutes of the Employees Retirement System Regular Meeting of October 18, 2007 with corrections. 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: 704. Total deferred: 37. Refunds made since the last regular meeting amounted to $43545.63. Retirement allowances paid for the month of October, 2007 amounted to $ 1,510,643.90. Total retirement checks printed for the ERS System: 780. 0 death(s). 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 excuse Trustees Korkoske and Trustee Murphy from the meeting. Approved by the following vote: unanimously Trustees Antekeier, Dedic and Kraus gave a report of the attendance to the International Foundation Education Benefits and Compensation Conference in Anaheim, California. Trustee Dedic overviewed the workshop topics and the materials received. Trustee Kraus reported to the board about new technology and the retirement benefit software packages available. Employees Retirement System Regular Meeting of November 15, 2007 Page 2 It was moved by Trustee Dedic and supported by Trustee Wood to have the Retirement Office contact the International Foundation and purchase a copy of the resource material from the Annual Conference with the cost not to exceed $100.00. Adopted by the following vote: unanimously Trustee Antekeier requested that Mr. John Jackson explain hedge funds. Mr. Jackson gave an overview of hedge funds and would provide a more detailed review at a joint meeting. Trustee Korkoske arrived to the meeting. Jack Roberts overviewed a draft resolution for the board's approval regarding the transfer of the zoo employees' retirement liability. Attorney Roberts is working with Clark Hill on the resolution. Mr. Blair Renfew reviewed some of the language and the steps that will be taken. Jack Roberts explained the Reciprocal Retirement Act in relation to the proposed resolution. Trustee Wood reported to the Board regarding the Joint Ad hoc Committee on Health Care. Trustee Wood said the committee will meet regarding having the Health Care workshop as a part of the Retirement Seminar next year. Karen Williams distributed and reviewed the October Securities Lending Account. The meeting recessed at 9:27 a.m. for the Joint meeting. Minutes approved on /a-,;�o-07 � G Robert Antekeier, Chairperson Employees' Retirement System Jet VArose,'Secretary Eloye s' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES' CITY OF LANSING J , EMPLOYEES' RETIREMENT SYSTEM... fit Regular Meeting December 20* 2007, Council Conference Room Thursday, 8:34;a.m 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:35 a.m. Present: Antekeier, Dedic (8:41), Korkoske, Kraus, Murphy (9:14), Piloske, Singleton (8:46) Wood - 8 Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Blair Renfro, Clark Hill, PLC. It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official minutes of the Employees Retirement System Regular Meeting of November 15, 2007 as submitted. Adopted by the following vote: unanimously It was moved by Trustee Kraus and supported by Trustee Korkoske to approve the Official minutes of the Joint Police and Fire and the Employees Retirement System Meeting of November 15, 2007. Adopted by the following vote: unanimously Secretary's Report. 2 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers, 0 retired. Total active membership: 705. Total deferred: 37. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of November, 2007 amounted to $ 1,468,315.69. Total retirement checks printed for the ERS System: 779. 2 death(s). Mr. Richard G. Waidelich (Teamster 580), retired 7/7/1992, died 11/30/2007, age 83, spouse to receive 50%; Barbara A. Schuiteman, died 11/10/2007, age 61, spouse of Peter (NonBargaining). Domestic relations orders received: 1. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of December 20, 2007 Page 2 It was moved by Trustee Kraus and supported by Trustee Wood to approve the following Request for Regular Age & Service Retirement: Daniel LeVeque, Public Service, (Non Bargaining Supervisory), 26 years, 10 months, age 51, effective December 1, 2007. It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Trustee Murphy from the Board Meeting. Adopted by the following vote: unanimously Karen Williams informed the Board that the City of Lansing Retirement Conference is scheduled for this year. Ms. Williams reviewed the details from the last conference in 2006. The Board discussed combining the proposed Health Care Conference with the Retirement Conference. The Board requested that Karen Williams contact possible locations regarding availability for dates in September. Chair Antekeier referred the item to the Education subcommittee and Ad Hoc Committee on Health Care. The subcommittees will meet jointly with the Employees Retirement System. The Board discussed inviting the Deferred Compensation Administrative Board and the Defined Contribution Administrative Board. Trustee Kraus informed the Board that Karen Klein from the Deferred Compensation has agreed to join the Planning Committee and that the Deferred Compensation committee will be responsible for contacting ING and TRowe Price. Trustee Murphy arrived to the meeting. Karen Williams requested approval to renew the MAPERS Membership for 2008. The renewal fee is $50.00. It was moved by Trustee Dedic and supported by Trustee Wood to approve the MAPERS membership renewal. Adopted by the following vote: unanimously Trustee Korkoske announced an opportunity for a delegate to go to an expense paid Alpha Tilts Fund Conference. Attorney Jack Roberts provided an overview of the Proposal Agreement for the transfer of retirement benefits for Potter Park Zoo Employees. Mr. Roberts informed the Board that Attorney Blair Renfew, Clark Hill Law Office would update the board regarding the status of the resolution. Employees Retirement System Regular Meeting of December 20, 2007 Page 3 Attorney Renfrew reviewed Appendix A that included the Potter Park Zoo Employees credited service as a part of the resolution. Attorney Renfrew informed the Board that Ingham County had not passed a resolution. Attorney Renfrew recommended to the Board of two options: the Board could pass the resolution before them or wait until Ingham County passes a resolution. Trustee Wood pointed out a correction of an employee's credit service on Appendix A. The Retirement Analyst confirmed the correction. Jack Roberts advised that the passing of these resolutions provides protection for the Employees Retirement System Board and the County Retirement Board by adhering to sections in the Reciprocal Retirement Act. Jack Roberts advised that as a first step, the Board could pass the resolution and that Ingham County would then have the opportunity to accept the document and calculations. The County would then pass their resolution. It was moved by Trustee Wood and supported by Trustee Kraus to table the vote for the Resolution Agreement for the transfer of retirement benefits for Potter Park Zoo Employees until Trustee Dedic returned to the meeting. Adopted by the following vote: unanimously Karen Williams distributed the 2008 Employees Retirement System Meeting Schedule for approval. It was moved by Trustee Wood and supported by Trustee Korkoske to approve the 2008 Employees Retirement System Meeting Schedule Adopted by the following vote: unanimously Trustee Kraus reported on Police and Fire Retirement Board action regarding the Meal Reimbursements for Out -of -State Travel. Due to the high expense of meals in California, the current policy maximums were found to be inadequate. Trustee Kraus reported to the Board that the Police and Fire System voted upon a one- time adjustment for the International Conference in Anaheim. The current Travel Policy per diem rates were doubled. Trustee Kraus also reported that the Board may adopt a select city policy where meal rates are higher. Clark Hill would obtain a list of select cities used by the State of Michigan for reimbursements. Chair Antekeier asked that the select city policy discussion be held jointly with Police so that the policies would be consistent. Trustee Dedic returned to the meeting. It was moved by Trustee Murphy and supported by Trustee Wood to waive the Board's general travel policy and double the city amounts listed in the Policy, consistent with the action taken by the Police and Fire Retirement Board. This one-time Policy adjustment is only for the International Conference in Anaheim because the cost for meals greatly exceeded the costs that were otherwise budgeted in Part A of the Policy. Daily amounts not to exceed, $100 with receipts, $60 without receipts. Trustee Korkoske expressed concern about doubling the rates without receipts. Adopted by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee Korkoske to approve the Resolution Agreement for the transfer of retirement benefits for Potter Park Zoo Employees. Adopted by the following vote: unanimously Karen Williams distributed the 2006 Actuarial Evaluation for the Employees Retirement System. Trustee Piloske requested that the External Auditors attend the Joint Meeting in February. Karen Williams distributed and reviewed the November Investment Report and Securities Lending Account. The meeting recessed at 9:26 a.m. Minutes approved on I V7 -�2t)08 R bent Antekeier, Chairperson Employees' Retirement System 2L �- Jerr Am rose, Secretary Employees' Retirement System