HomeMy WebLinkAbout2009 Employee's Retirement System Board MinutesOFFICIAL ROCEEDINGS OF Th__ BOARD OF
T RUS T EES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, MI
January 22, 2009
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:33 a.m.
Present: Antekeier, Dedic, Kraus, McCaffery, Singleton - 5.
Absent: Trustees Bernero, Korkoske, Murphy, Wood
Others: Karen E. Williams, Jerry Ambrose, Angela Bennett, Finance Department; Attorney
Ken Lane, Attorney John Schneider, Clark Hill (representing the Law Department),
Brad Armstrong, Gabriel, Roeder and Smith, and Ronald Kruger, retiree.
It was moved by Trustee McCaffery and supported by Trustee Dedic to approve the Official
minutes of the Employees' Retirement System Regular Meeting of December 18, 2008.
Adopted by the following vote: unanimously
Secretary's Report. 1 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 0
retired. Total active membership: 613. Total deferred: 43. Refunds made since the last
regular meeting amounted to $ 5,968.24. Retirement allowances paid for the month of
December, 2008 amounted to $1,531,664.94. Total retirement checks printed for the ERS
System: 792. 2 death(s). Maxine Miller, spouse of Teamster 580 member, age 92, died
11/112008; David E. Dickert (Parks —UAW), retired 11/4/1995, age 65, died 12/18/2008;
spouse to receive 100%. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 1. Eligible domestic relations orders certified: 1.
Trustee Dedic requested the number of deferred members that were members. of the FOP
911 union. The Retirement Office will provide the information to Trustee Dedic.
It was moved by Trustee Kraus and supported by Trustee Dedic to approve the following
request for Regular Age & Service Retirement:
Sharon Cady, Finance (T580 CTP), 16 years, 1 month, age 62, 7 months, effective
January 3, 2009.
Ann Cutler, Police -Civilian (T580 CTP), 8 years, 1 month, age 64, 6 months,
effective January 23, 2009.
Approved by the following vote: 5— 0.
Employees Retirement System
Regular Meeting of January 22, 2009
Page 2
Karen Williams reported upon the request for non -duty disability retirement from Ms.
Sandra Boles, Teamster 580 CTP. The disability subcommittee met and Ms. Boles' was
not referred to the medical director for evaluation. The subcommittee in coordination with
human resources department determined that Ms. Boles had enough sick time available to
make her eligible for regular age and service.
It was moved by Trustee Dedic and approved by Trustee McCaffery to excuse Trustees
Korkoske, Murphy and Wood.
Adopted by the following vote: unanimously
Karen Williams distributed information regarding a One -Day Seminar offered by MAPERS.
The Seminar's topics included securities litigation and hedge funding. Ms. Williams
requested interested members to contact the Retirement Office to registerforthe seminar.
It was moved by Trustee Dedic and supported by Trustee Kraus to nominate and approve
Robert Antekeier as chair of the Employees Retirement System Board.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Kraus and supported by Trustee McCaffery to nominate and
approve Scott Dedic as vice chair of the Employees Retirement System Board.
Adopted by the following vote: 5 — 0.
The following subcommittee membership was approved by the Board for 2009:
Disability Committee
Education Committee
Joint Adhoc Committee on Health Care
Investment Committee
Outside Legal Services Committee
Ordinance Change Committee
(expanded to include Special Projects)
- Antekeier, Kraus, Singleton, Wood
- Antekeier, Kraus, Korkoske
- Dedic, Korkoske, Singleton, Wood
- Antekeier, Korkoske, Kraus
Dedic, Kraus, Singleton, Wood
- Dedic, Kraus, Singleton, Wood
Mr. Brad Armstrong provided the Gabriel, Roeder and Smith actuarial presentation for the
Employees Retirement System. Mr. Armstrong provided an overview of the valuation
results, comments and conclusions. He discussed the retirement systems benefic
provisions and valuation data. Mr. Armstrong reviewed the financial principles, actuarial
valuation process and actuarial cost methods.
Employees Retirem( ',ystem
Regular Meeting of Ja_ .ary 22, 2009
Page 3
Mr. Armstrong presented to Employees Retirement System an update on the Members'
Benefit Fund, to fund post retirement pension increases. Since 2000, the Members
Benefit Fund has grown approximately 2% a year. Mr. Armstrong did not believe that the
investments were sufficient to fund a post retirement pension increase. If enacted by the
Board, the increase would become permanent.
Karen Williams distributed an update from Gabriel, Roeder & Smith for the electronic
version Minute Master. Ms. Williams requested a list of users allowed to access the Minute
Master. The Board suggested that the Minute Master should be available to the retirees
and active employees. Trustee Kraus inquired if there was the ability to have a generic
password to access the system.
Trustee Kraus provided an update for the Joint Committee for Bid Process for actuary.
The subcommittee met and reviewed various proposals to put together a draft document.
Karen Williams distribute a letter from Clark Hill in response to a retiree's letter and
request. Attorney Kenneth Lane reviewed the response mailed to Mr. Hilton regarding the
Post Retirement Pension Increases.
Attorney John Schneider provided an update on the Qualified Plan Document. Attorney
Schneider reported that a first draft of the Employees Retirement System Ordinance was
delivered to the City Attorney's Office for review. Attorney Schneider discussed how
historical data would be handled in the draft retirement ordinance. Attorney Kenneth
Lane stated that draft has a marked copy, indicating the reorganization and updates.
With the approval of the Board, Trustee Antekeier permitted Angela Bennett, budget
director to give an update on the benefit changes for Teamsters 214. Ms. Bennett
distributed information and reported thatthe retirement factor was increased from 1.6%to
1.8% for the Teamsters 214 union effective December 31, 2008. Ms. Bennett requested
an advisory vote approval from the Employees Retirement Board.
It was moved by Trustee Kraus and supported by Trustee Singleton to approve the change
in the retirement factor from 1.6% to 1.8% recognizing that there will not be an adverse
effect on the fund, as reported by the City's actuary.
Trustee Kraus requested clarification regarding how the new factor will be applied. Ms.
Bennett reported to the Board that 214 members that retire after the effective date will have
the 1.8% factor.
Adopted by the following vote: 5 — 0.
Karen Williams distributed and reviewed the Securities Lending Account report.
Attorney Ken Lane reported to the Board that he was working with the City Attorney's office
to update the EDRO forms to make it consistent with the policy
The meeting adjourned at 9:46 a.m.
Minutes approved on
Robert Antekeier,`'Chairperson
Employees' Retirement System
JP,/ Am rose, Secretary
oyees' Retirement System
Gabriel Rof ' Smith & Company One Towne Sq 248.799.9000 phone
�.,OnSUIUM S .tuaries Suite 800 248.799.9020 fax
RS Southfield, V l 48076-3723 wmv.gabrielroeder.com
January 8, 2009
Ms. Sue Graham
Labor Relations Manager
City of Lansing
124 W. Michigan Ave. — 4t' Floor
Lansing, MI 48933
Re: Proposed Benefits for Teamsters 214 under the Lansing Employees'
Retirement System
Dear Sue:
As requested, we have completed a supplemental actuarial valuation to determine the
additional City contributions to support a proposed benefit change for the Teamsters
214 bargaining unit.
Feel free to call with any comments or questions.
Sincerely,
Brad Lee Armstrong
BLA:sac
Enclosure
cc: Jerry Ambrose, Lansing Chief of Staff ( + enclosure)
Angela Bennett, Budget Manager
David L. Hoffman, GRS (+ enclosure)
City of Lansing Employees' Retirement System
Supplemental Actuarial Valuation
Teamsters 214
December 31, 2006
Requested By: Ms. Sue Graham, Labor Relations Manager
Jerry Ambrose, Lansing Chief of Staff
Submitted By: David L. Hoffman and Brad Lee Armstrong, ASA, EA, MAAA
Gabriel, Roeder, Smith & Company
Date: January 8, 2009
This report contains a valuation of certain proposed benefit changes for the Teamsters 214 members
covered in the City of Lansing Employees' Retirement System.
One or more of the actuaries are Members of the American Academy of Actuaries (MAAA) as
indicated, and meet the Qualification Standards of the American Academy of Actuaries to render the
actuarial opinion contained herein.
The date of the valuation was December 31, 2006. This means that the results of the supplemental
valuation indicate what the December 31, 2006 valuation would have shown if the proposed benefit
changes had been in effect on that date. This supplemental valuation does not predict the result of the
December 31, 2006 valuation or of any other future actuarial valuation. (Future activities can affect
future valuation results in an unpredictable manner.) Rather, the supplemental valuation gives an
indication of the probable effect of only the benefit change on future valuations without cominent on
the complete end result of the future valuations.
These calculations are based upon assumptions regarding future events, which may or may not
materialize. They are also based upon present and proposed plan provisions that are outlined in the
report. If you have reason to believe that the assumptions that were used are unreasonable, that the
plan provisions are incorrectly described, that important plan provisions relevant to the proposed
changes are not described, or that conditions have changed since the calculations were made, you
should contact the author(s) of this report prior to relying on information in the report. Also, in the
event that more than one plan change is being considered, it is very important to remember that the
results of separate actuarial valuations cannot generally be added together to produce a total. The total
can be considerably greater than the sum of the parts due to the interaction of various plan provisions
with each other, and with the assumptions that must be used.
1/8/2009 Gabriel Roeder Smith & Company -1-
City of Lansing Employees' Retirement System
Supplemental Actuarial Valuation
Teamsters 214
December 31, 2006
Actuarial assumptions and methods were consistent with those used in the regular actuarial valuation
as of December 31, 2006, unless otherwise indicated. In particular, the assumed rate of investment
return was 8.0%, the assumed rate of active member payroll growth was 4.0%, and increases in
unfunded actuarial accrued liability were financed as a level percent -of -payroll over 30 years.
A brief summary of the Teamsters 214 data as of the valuation date is given below:
"New Plan"
"New Plan"
Supervisory
Non-Supervisory
"Old Plan"
Number of active members
13
12
10
Payroll
$924,745
$729,577
$661,260
Averages:
— age
46.41 years
46.5 years
49.6 years
— years of service
5.5 years
3.1 years
17.3 years
— salary
$ 71,134
$ 60,798
$ 66,126
Only the "New Plan " members were used in this valuation.
1/8/2009 Gabriel Roeder Smith & Company -2-
City of Lansing Employees' Retirement System
Supplemental Actuarial Valuation
Teamsters 214
December 31, 2006
Summary of Results
Increase in Employer Contribution Rate
Proposed Benefit Multiplier (as a Percent of Applicable Active Member Payroll)
Supervisory Non-Supervisory7 Total
1.80% 1.81 % 1.70% 1.76%
More detailed results and descriptions follow.
1/8/2009 Gabriel Roeder Smith & Company -3-
City of Lansing Employees' Retirement System
Supplemental Actuarial Valuation
Teamsters 214
December 31, 2006
PROPOSAL ONE ("NEW PLAN" SUPERVISORY):
Current Benefit Provisions - Normal Retirement Benefit Amount:
Final Average compensation times 1.60% times credited service.
Proposed Benefit Provisions - Normal Retirement Benefit Amount:
Final Average compensation times 1.80% times credited service. CG 1l yecv s g��
Actuarial Information:
The following illustrates the computed increase in the employer contribution rate that
would be necessary to fund for the proposed benefit on a level percent -of -payroll basis. The
costs are shown as if to be paid entirely by additional City contributions.
% of "New Plan"
Increase in Employer Contribution Rate Supervisory Payroll
Normal Cost 1.35%
UAAL* (30 year amortization) 0.46
Total 1.81 %
* Unfunded Actuarial Accrued Liability.
Comment A: The above contribution rate is based upon the annual Teamsters 214 "New Plan"
supervisory defined benefit member payroll.
Comment B: If the change in benefit provisions causes members to retire sooner, the increase in the
rate shown above could be higher.
1/8/2009 Gabriel Roeder Smith & Company -4-
City of Lansing Employees' Retirement System
Supplemental Actuarial Valuation
Teamsters 214
December 31, 2006
PROPOSAL Two ("NEW PLAN" NON -SUPERVISORY):
Current Benefit Provisions - Normal Retirement Benefit Amount:
Final Average compensation times 1.60% times credited service.
Proposed Benefit Provisions - Normal Retirement Benefit Amount:
Final Average compensation times 1.80% times credited service.
Actuarial Information:
The following illustrates the computed increase in the employer contribution rate that
would be necessary to fund for the proposed benefit on a level percent -of -payroll basis. The
costs are shown as if to be paid entirely by additional City contributions.
% of "New Plan"
Increase in Employer Contribution Rate Supervisory Pa roll
Normal Cost 1.39%
UAAL* (30 year amortization) L 0.31
Total 1.70%
* Unfunded Actuarial Accrued Liability.
Comment A: The above contribution rate is based upon the annual Teamsters 214 "New Plan" non -
supervisory defined benefit member payroll.
Comment B: If the change in benefit provisions causes members to retire sooner, the increase in the
rate shown above could be higher.
1/8/2009 Gabriel Roeder Smith & Company -5-
OFFICIAL F .:OCEEDINGS OF THE BOARD OF
TRUSTEES
EMPLOYEES'
.__.Regular Meeting
-Council Conference Room
10th ;Floor, City Hall
Lansing,. MI
CITY OF LANSING
RETIREMENT SYSTEM (REVISED)
February 19, 2009
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:38 a.m.
Present: Antekeier, Dedic (8:49a.m.), Korkoske, Kraus, McCaffery, Singleton, Wood - 7.
Absent: Trustees Bernero, Murphy
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
It was moved by Trustee Korkoske and supported by Trustee McCaffery to approve the
Official minutes of the Employees' Retirement System Regular Meeting of January 22,
2009.
Adopted by the following vote: unanimously
It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official
Minutes of the Joint Police and Fire and Employees' Retirement System Board Meeting of
January 20, 2009.
Adopted by the following vote: unanimously
Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers, 2
retired. Total active membership: 611. Total deferred: 44. Refunds made since the last
regular meeting amounted to $ 9,798.78. Retirement allowances paid for the month of
January, 2009 amounted to $ 1,532,316.72. Total retirement checks printed for the ERS
System: 793. 2 death(s). Frank L. Stevens, (Parks — NonBargaining, retired 5/6/1975, age
96, died 1/24/2009; Lois L. Young, spouse of UAW member, age 86, died 1/29/2009.
Eligible domestic relations orders received: 0. Domestic relations orders pending: 1.
Eligible domestic relations orders certified: 0.
It was moved by Trustee Wood and supported by Trustee Kraus to approve the following
request for Regular Age & Service Retirement:
Gary Shall, Public Service, (T580 CTP), 21 years, 1 month, age 48, 3 months,
effective' February 1, 2009. (65 points)
Saundra Boles, Police -Civilian (T580 CTP), 21 years, 7 months, age 43, 5 months,
effective February 23, 2009. (65 points)
Approved by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of February 19, 2009
Page 2
Karen Williams reported upon the request for non -duty disability retirement from Ms.
Sandra Boles, Teamster 580 CTP. The disability subcommittee met and Ms. Boles' was
not referred to the medical director for evaluation. The subcommittee in coordination with
human resources department determined that Ms. Boles had enough sick time available to
make her eligible for regular age and service.
Karen Williams reported to the Board the following Requests for Refund of Accumulated
Contributions for Ms. Susan Goff, Parks -Forestry (Teamsters 580) - $9,798.78 and Ms.
Lindsey Lalone, Police/Civilian (FOP 911) - $15,139.91. Ms. Goff and Ms. Lalone were not
vested.
Trustee Singleton inquired to the Retirement Office if the Refund of Accumulated
Contributions was gross income or net. Karen Williams informed the Board that the
Accumulated Contributions are gross numbers.
It was moved by Trustee Korkoske and approved by Trustee Wood to excuse Trustees
Dedic and Murphy.
Trustee Kraus inquired to the Board regarding the status of Trustee Murphy. Trustee
Wood informed the Board that Trustee Murphy planned to attend meetings through April.
He would then submit a letter of resignation. His term would end June 2009.
Adopted by the following vote: 6 — 0.
Karen Williams distributed information for the Asset Consulting Group Trustee Training and
Hedge Fund Forum, March 11, 2009. The trustee training will be held first, at 10:00a.m.,
followed by the Hedge Fund Educational forum.
Karen Williams announced that Spring MAPERS will be May 17-19 in Grand Rapids,
Michigan.
Trustee Antekeier reported to the Board that he attended the MAPERS One Day
Conference in Dearborn, February 6, 2009. Trustee Antekeier stated that conference
stressed that Trustees need to become active participants with the selection on mangers.
The Board discussed ways to become more involved and not rely solely on Asset
Consulting.
Trustee Dedic arrived to the meeting.
Karen Williams provided a Retirement Web Site Update. Ms. Williams previewed the items
that are currently on the site and the items that are proposed for the site. Ms. Williams will
work with Spartan Internet to upgrade the site. Ms. Williams has contacted Gabriel,
Roeder, Smith (GRS) and company regarding linking the actuary site to the retirement web
site. GRS has requested direction on what items can be reviewed by the general public.
Trustee Wood requested that legal review the GRS website to determine what items
should be protected as mentioned in the Police and Fire Retirement meeting. Trustee
Wood also requested that the Retirement web site be placed on the City's front page.
Employees Retirement stem
Regular Meeting of February 19, 2009
Page 3
Trustee Kraus expressed concerned that the Retirement Board is responsible for the
content of the web site through Karen Williams. The Board can let Karen update the site
or have a sub -committee assist her with content issues.
Trustee Kraus inquired what information will be posted regarding addresses and phones
for trustees. Karen Williams explained to the Board the only information that will be posted
will be city addresses, and emails.
Trustee Antekeier referred the web -site update to the Special Projects subcommittee.
Karen Williams reported to the Board that the Retirement Office received a letter of re-
appointment for Carol Wood as the City Council Trustee.
Karen Williams distributed the City Travel Policy. Trustee Wood reviewed the current
Board's Policy that accepts the current City Travel Policy with modifications.
It was moved by Trustee Wood and supported by Trustee Korkoske to receive the City
Travel Policy, dated 12/28/2008 as an addendum to the Board's Travel Policy.
Adopted by the following vote: 7 — 0.
Trustee Antekeier reported that the Employees Retirement System Actuary Report needed
to be accepted by the Board.
It was moved by Trustee Korkoske and supported by Trustee McCaffery to accept the
Employees Retirement System Actuarial report.
Adopted by the following vote: 7 — 0.
Trustee Wood informed the Board that the City is moving forward with transferring the 911
Center employees to Ingham County. The Board discussed howthe proposed transferwill
impact the Retirement System funds. Trustee Wood suggested that the Board review the
proposal and give a recommendation to City Council. Trustee Wood suggested first
receiving update from Jerry Ambrose, and then to have the actuary come to a meeting and
provide information to help the Board formulate questions.
Trustee Antekeier requested that the item be placed on next month's agenda.
Trustee Kraus updated the Board regarding the Actuary Bid Process. The subcommittee
planned to meet, February 20 to review the draft sent to committee members for
suggestions and amendments. Trustee Wood suggested that staff make changes during
the meeting.
Attorney Ken Lane updated the Board regarding the Qualified Plan Documents. The City
Attorney's Office had not completed the documents, but the plan will be ready for review at
next month's meeting. Attorney Lane will provide a weekly update of the contact with the
City's Attorney office regarding the status of the Qualified Plan Documents.
Trustee Wood reported that she would contact members of thi int Ad hoc Committee on
health care to draft the Retiree Health Care Survey.
Karen Williams distributed and reviewed the Investment and Securities Lending Account
report.
The meeting adjourned at 9:20 a.m.
Minutes approved on j —Icy- 24DO
d2i�-�s
��2014 Robert Antekeier, Chairperson
Employees' Retirement System
eA brose, Secretary
mplo es' Retirement System
OFFICIAL 1 ,<OCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting March 19, 2009
---Council .Conference Room Thu rsday;-_8:3Q.Id.m.
10th: Floor., City Hall
Lansing,_ MI
The Board met in regular session and was called to order at 8:36 a.m.
Present: Antekeier, Dedic (8:46a.m.), Kraus, McCaffery, Singleton, Wood - 6.
Absent: Trustees Bernero, Korkoske, Murphy
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Attorney John
Schneider, Clark Hill (representing the Law Department).
It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official
minutes of the Employees' Retirement System Regular Meeting of February 19, 2009.
Adopted by the following vote: unanimously
Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers,
2 retired. Total active membership: 605. Total deferred: 45. Refunds made since the
last regular meeting amounted to $ 15,139.91. Retirement allowances paid for the
month of February, 2009 amounted to $1,502,749.47. Total retirement checks
printed for the ERS System: 794. 1 death(s). Margaret Julia Crawford, died,
11/27/2008, spouse of UAW member, age 74. Eligible domestic relations orders
received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders
certified: 0.
There were no requests for Regular Age and Service Retirements.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements
The Retirement Office reported that Ms. Joan Clous, Human Resources (Teamster 580)
requested her refund of accumulated contributions of $17,369.20. The request was
approved by the Board.
It was moved by Trustee Wood and approved by Trustee McCaffery to excuse Trustees
Korkoske and Murphy.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of March 19, 2009
Page 2
Trustee Singleton and Trustee Kraus reported to the Board regarding the Asset Consulting
Group Trustee Training and Hedge Fund Forum, March 11, 2009. Trustee Wood reported
to the ERS Board that Police and Fire Retirement Board discussed moving forward to
begin the process by working with Asset Consulting to investigate Hedge Funds and to
search for eligible firms for the Board to evaluate. Trustee Kraus suggested that the
Employees Retirement System Board also move forward and investigate Hedge Funds as
investments. Trustee Antekeier inquired to legal counsel if the Investment Policy needed
to be amended to invest in Hedge Funds. Attorney Ken Lane stated that he believed that
the policy may need to be modified, because Hedge Funds are not as transparent as other
investment vehicles.
Trustee Dedic arrived to the meeting.
It was moved by Trustee Kraus and supported by Trustee Dedic to begin the process by
working with Asset Consulting to investigate Hedge Funds and to search for eligible firms
for the Board to evaluate.
Adopted by the following vote: 5 0.
Karen Williams announced that Spring MAPERS will be May 17-19 in Grand Rapids,
Michigan. Karen Williams reported to the Board that Attorney Ken Lane has requested to
attend the MAPERS Conference, representing the City Attorney's Office. Attorney Ken
Lane reported to the Board that Clark Hill will pick up all of his expenses associated with
attending MAPERS.
It was moved by Trustee Kraus and supported by Trustee Wood to approve Attorney Ken's
Lane request to MAPERS with the understanding that Clark Hill Law firm will pay all costs
associated with Attorney Lane's attendance.
Adopted by the following vote: 5 — 0.
Karen Williams announced the International Foundation Conference will be held in
Orlando, Florida in November.
Trustee Carol Wood distributed and reported to the Board regarding OPEB legislation.
Trustee Wood suggested a letter to Michigan representatives in the state legislature to
support the OPEB legislation.
It was moved by Trustee Wood and supported by Trustee Dedic to draft a letter to
Michigan representatives in the state legislature to support the OPEB legislation.
Adopted by the following vote: 5 - 0.
Employees Retirement System
Regular Meeting of March 19, 2009
Page 3
Attorney John Schneider provided a draft copy and marked up copy of the Employees
Retirement System ordinance revisions. Attorney Schneider reviewed these documents
and discussed a memo to the Board describing the changes, and explained the process
and information he used to prepare the first draft. Trustee Wood requested that Clark Hill
provide a detailed narrative of the changes. Trustee Antekeier provided a background of
why the Ordinance Review process was initiated. He explained the original intention was
to simplify the ordinance, not to make major revisions.
Trustee Wood reported to the Board that the Joint Committee for Bid Process met to
review the proposal for Actuary. Trustee Wood explained that the proposal would be
brought before the full Board and then provided to legal counsel for review.
Finance Director Jerry Ambrose provided an overview of the 911 Operators proposed
transfer to Ingham County. Mr. Ambrose reported to the Board that there are on -going
talks between Ingham County, the City of Lansing, and the City of East Lansing to have
one central dispatch. Mr. Ambrose reported to the Board that there are currently about 46
operators and there would be a determination made for the accrued liability. Mr. Ambrose
stated that the proposal is in the initial stages and would follow a similar pattern as the zoo
transfer. Mr. Ambrose provided that this proposal would probably take about a year before
it is brought before the Board for discussion and action.
Trustee Wood reported to the Board that the Joint Ad Hoc Committee on Health Care
would meet on April 3 to draft a Retiree Health Care Survey.
Karen Williams distributed and reviewed the Investment and Securities Lending Account
report. Ms. Williams updated the Board on the re -balance of Investment funds suggested
to by Asset Consulting.
Karen Williams requested approval for the Quarterly Cash Flow Withdrawal of $6,000,000
from MD Sass to pay retirement benefits and payroll taxes, recommended by Asset
Consulting Group.
It was moved by Trustee Wood and supported by Trustee Dedic to approve withdrawal of
$6,000,000 from MD Sass to pay retirement benefits and payroll taxes for the quarterly
cash flow.
Adopted by the following vote: 5 — 0.
Karen Williams requested approval for Quarterly Cash Flow Withdrawal of $5,000 from
Northern Trust Securities Lending Account to pay administrative expenses.
It was moved by Trustee Kraus and supported by Trustee Wood to withdraw $5,000 from
Northern Trust Securities Lending Account for administrative expenses.
Adopted by the following vote: 5 - 0.
Employees Retirement System
Regular Meeting of March 19, 2009
Page 4
Attorney Ken Lane reviewed the Northpoine new fee structure agreement with the Board.
The Board approved the agreement pending legal review at the January joint meeting.
The meeting adjourned at 9:38 a.m.
Minutes approved on 4-23-.9-909'%
J ry A brow, Secretary
Zplo es' Retirement System
Robert Antekeier, tfiairperson
Employees' Retirement System
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
March 17, 2009
Tuesday, 8:30 a.m.
The Board met in regular session and was called to order at 8:36 a.m.
Present: Trustees Benson, Hecksel, Holliday, Kraus, Oleson, St. Aubin, Wood — 7.
Absent: Trustee Bernero
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Attorney, John
Schneider, Clark Hill Law Office (representing the Law Department); David
Hoffman, Gabriel, Roeder, Smith and Company; Mr. David Ankney, Byran Epling, _
Ellen Vogt, Chris Lake, Lansing Fire Department.
It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve. the
Official Minutes of the Police and Fire Retirement System Board Meeting of February
17, 2009.
Adopted by the following vote: unanimously.
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 1
refund(s), 0 transfers, 0 retired. Total: Active membership: 475. 1
death(s). William Eisele, Fire, died 3/5/2009, age 83, spouse to receive
50%. Refunds made since the last regular meeting amounted to $
9,855.00. Retirement allowances paid for the month of February, 2009
amounted to $1,791,828.37. Total retirement checks printed for the P&F
System: 631. Total retirement checks printed for both systems: 1425.
Domestic relations order received: 0. Domestic relations orders pending:
0. Eligible domestic relations orders certified: 0.
There were no applications for Regular Age and Service Retirements.
There were no requests for Non Duty Disability Retirements.
There were no refunds of accumulated contributions.
Trustee Holliday requested that the Gabriel, Roeder, Smith Actuarial Report be
presented next on the agenda.
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, MI
March 17, 2009
Tuesday, 8:30 a.m.
Page Two
Mr. Dave Hoffman, Gabriel, Roeder, Smith and Company reviewed the City of Lansing
Police and Fire Retirement System Actuarial Valuation Report, December 31, 2007. Mr.
Hoffman explained actuarial accrued liability. He provided valuation results, comments
and conclusions. Mr. Hoffman discussed the effect of the investment performance on
the valuation results. He provided a summary of the benefit provisions and valuation
data.
It was moved by Trustee Hecksel and supported by Trustee Oleson to accept the
Actuarial Valuation Report of December 31, 2007.
Adopted by the following vote: 7 - 0.
Attorney John Schneider provided an overview of the City of Lansing Police and Fire
Retirement Ordinance changes. Attorney John Schneider provided the first draft copy of
the ordinance revisions and described the changes. He explained the process and
information he used to prepare the first draft. Trustee Wood requested that Clark Hill
provide a detailed narrative of the changes.
The Trustees provided inquiries to Clark Hill regarding the placement of information in
the draft compared to the current ordinance. Trustees expressed concerned that the
draft was not consistent with language that was in the current ordinance. Trustee
Hecksel requested a listing of all the language that was deleted in the new draft.
Trustee Wood requested an explanation regarding the issues recommended by Doug
Rubley, Attorney Jack Roberts and the Board and their inclusion in the draft. Trustee
Kraus suggested that the draft go to subcommittee for review,
Trustee Holliday opened the floor for the public comments on the agenda.
Mr. Bryan Epling, IAFF, expressed his concern that the draft was confusing compared
to the current ordinance. Mr. Epling expressed concern that there were language
changes that were not consistent with the collective bargaining agreements (CBAs). He
further stated that he believed some of the verbiage may have changed the intent of the
CBAs in the draft. He urged the Board to make certain that the CBA language is
incorporated into the new ordinance.
Trustee Wood requested an updated on the remaining items on the Qualified Plan
Documents. Attorney Ken Lane reported that several policies were delivered to the City
Attorney's office for review.
Trustee Oleson gave an overview of the items that he listed for the Qualified Plan
Document. The items included an Ordinance Review, and a review of tax status,
pending issues, policies, grey areas, past practice.
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, MI
March 17, 2009
Tuesday, 8:30 a.m.
Page Three
Trustee Hecksel gave an overview of the Asset Consulting Group Trustee training on
Hedge Funds. The Training was held March 11, 2009 and Trustee Hecksel reported
that the training was very informative.
Karen Williams requested that Trustees notify her if they wish to attend MAPERS Spring
Conference, May 17 — 19 in Grand Rapids, Michigan.
Karen Williams reported to the Board that Attorney Ken Lane has requested to attend
the MAPERS Conference, representing the City Attorney's Office. Attorney Ken Lane
reported to the Board that Clark Hill will pick up all of his expenses associated with
attending MAPERS.
It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve
Attorney Ken's Lane request to MAPERS with the understanding that Clark Hill Law firm
will pay all costs associated with Attorney Lane's attendance.
Adopted by the following vote: 6 — 0.
Karen Williams reported to the Board that the International Foundation Conference will
be held in Orlando, Florida in November. She requested members who wished to
attend the Conference to contact her at the Retirement Office.
Trustee Robert Oleson reviewed the Hedge Fund discussion and the long short strategy
presented by Asset Consulting Group. Trustee Oleson recommended that the Board
move forward with investing in hedge funds.
It was moved by Trustee Oleson and supported by Trustee Hecksel to begin the
process by working with Asset Consulting to investigate Hedge Funds and to search for
eligible firms for the Board to evaluate.
Adopted by the following vote: 6 — 0.
Trustee Holliday will contact Asset Consulting requesting information to move forward
with investment in hedge funds.
Trustee Wood reviewed the OPEB legislation. The legislation would give the city the
ability to bond for health care.
Karen Williams distributed the City Attorney's Office letter responding the Mrs. Maureen
Wahl's attorney. Mrs. Wahl was the widow of retiree, Michael Wahl at the time of his
death. However, Mrs. Maureen was not the spouse of record at the time of retirement.
Attorney Ken Lane added that the City Attorney's office spoke with the attorney and
drafted the letter after discussion the matter.
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, MI
March 17, 2009
Tuesday, 8:30 a.m.
Page Four
Karen Williams distributed the City Attorney's Office in response to Trustee Oleson
regarding service credits.
Attorney Ken Lane updated the Board regarding issues regarding Medical Director.
Attorney Lane will provide a written response for the Board. Attorney Lane responded
to the Board that the medical director served at the pleasure of the Board. The
Ordinance does not allow the Board to appoint more than one medical director.
Attorney Lane stated that he needed to review the current contract and will provide that
information in his response.
Trustee Wood reported to the Board that the Joint Committee for Bid Process met to
review the proposal for Actuary. Trustee Wood explained that the proposal would be
provided to legal counsel for review.
Trustee Wood updated the Board regarding the Joint Ad Hoc Health Care
Subcommittee. Trustee Wood reported that the subcommittee will meet next month to
draft a survey that can mailed to retirees regarding health care issues.
Karen Williams distributed and reviewed the February Investment Report. Ms. Williams
updated the Board on the re -balance of Investment funds suggested to by Asset
Consulting.
Karen Williams requested approval for the Quarterly Cash Flow Withdrawal of
$7,000,000 from MD Sass to pay retirement benefits and payroll taxes, recommended
by Asset Consulting Group.
It was moved by Trustee Wood and supported by Trustee Oleson to approve withdrawal
of $7,000,000 from MD Sass to pay retirement benefits and payroll taxes for the
quarterly cash flow.
Adopted by the following vote: 6 — 0.
Karen Williams requested approval for Quarterly Cash Flow Withdrawal of $5,000 from
Northern Trust Securities Lending Account to pay administrative expenses.
It was moved by Trustee Wood and supported by Trustee Hecksel to withdraw $5,000
from Northern Trust Securities Lending Account for administrative expenses.
Adopted by the following vote: 6 - 0.
Attorney Ken Lane reviewed the Northpoine new fee structure agreement with the
Board. The Board approved the agreement pending legal review at the January joint
meeting.
It was moved by Trustee St. Aubin and supported by Trustee Oleson to adjourn the
meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 11:08 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Bruce Holliday, Chairperson
Police & Fire Retirement System
OFFICIAL , ROCEEDINGS OF THE 63OARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, MI
April 23, 2009
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:36 a.m.
_7
Present: Dedic, Korkoske, Kraus, McCaffery, Singleton, Wood - 6.
Absent: Trustees Antekeier, Bernero, Murphy = -_
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Attorney.':,John_
Schneider, Clark Hill (representing the Law Department). -
It was moved by Trustee Kraus and supported by Trustee McCaffery to approve, the,Offic aT'
minutes of the Employees' Retirement System Regular Meeting of March 19, 2009 with
amendments.
Adopted by the following vote: unanimously
Secretary's Report. 3 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers,
0 retired. Total active membership: 603. Total deferred: 46. Refunds made since the
last regular meeting amounted to $ 17,369.20. Retirement allowances paid for the
month of March, 2009 amounted to $1,501,110.26. Total retirement checks printed
for the ERS System: 791. 2 death(s). Larry A. Martin, died, 01 /14/2009, (Finance -
Exempt, retired 7/10/1986), age 81; Robert E. Dexter, died 3/27/2009, (Public
Service -T580, retired 7/7/1992), age 71. Eligible domestic relations orders
received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders
certified: 0.
There were no requests for Regular Age and Service Retirements.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements
The Retirement Office reported that Ms. March R. Cyphers, District Court (Teamster 580)
requested her refund of accumulated contributions of $5,144.37. Ms. Cyphers was not
vested.
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the
Request for Refund of Accumulated Contribution of Ms. Marci R. Cyphers.
Adopted by the following vote: 5 - 0.
Employees Retiremen, -,ystem
Regular Meeting of April 23, 2009
Page 2
It was moved by Trustee Wood and approved by Trustee Korkoske to excuse Trustees
Antekeier and Murphy.
Adopted by the following vote: unanimously
Trustee Kraus informed the Board that the Police and Fire Retirement Board had a
discussion on taking action and administering the current policy for unexcused absences
for members. Trustee Kraus explained that in the past, members were given a blanket
excuses and wanted to know if the Employees Retirement System Board would also like to
enforce the policy regarding unexcused absences. Attorney Schneider reviewed the
retirement ordinance 292.05 for elected and appointed members. The Board agreed to
more stringently enforce the unexcused absence policy. Board members shall contact the
Retirement Office or the Board Chair if that member wishes to be excused.
Adopted by the following vote: 5 — 0.
Karen Williams reviewed the MAPERS registration and hotel confirmations. Additionally,
the Employees Retirement System received four invitations for Sunday. Ms. Williams
requested that members contact the Retirement Office to reserve a space.
Karen Williams distributed a draft for the election of the Public Service Department
Trustee. Ms. Williams reviewed the proposed dates for the posting, nomination petition
and the elections if needed.
It was moved by Trustee Wood and supported by Trustee Kraus to approve the posting for
the Public Service Department Trustee.
Adopted by the following vote: 5 — 0.
Karen Williams distributed an email from Dr. Roth, the medical director. He informed the
Board that the University of Michigan had decided to no longer perform disability medical
evaluations through MWorks. Dr. Roth feels an obligation to continue as medical director
and is looking for another location to continue the medical evaluations.
Trustee Wood expressed concern that costs may increase for Dr. Roth's services at a new
location. Trustee Wood also inquired the time frame that will be allowed for Dr. Roth to find
new facilities.
Trustee Dedic inquired if there was a contract with University of Michigan or Dr. Victor
Roth. Attorney Ken Lane advised that Dr. Roth was appointed by resolution and serves at
the pleasure of the Board.
Trustee Wood suggested that the Board remain cognizant of the costs associated with this
new facility. Trustee Wood also suggested that the Board take action if Dr. Roth has not
reported back within 30 days regarding a new facility. Trustee Wood suggested that the
matter be kept on pending items.
Employees Retirement System
Regular Meeting of April 23, 2009
Page 3
Karen Williams reported to the Board regarding the Duty Disability Income Verifications.
Seven duty disability retirees have reported and two retirees have not reported. The duty
disability retirees have until April 30, 2009 to send in their verification. Ms. Williams
explained the next step is generally to send a second notice to retirees who have not
reported. Trustee Kraus suggested sending a certified letter giving the retirees that have
not reported, two additional weeks to report, before action is taken.
It was moved by Trustee Kraus and supported by Trustee Wood to send certified letters by
May 1, 2009, to duty disability retirees who have not reported their income. These retirees
would have two weeks to report before further action is taken by the Board.
Adopted by the following vote: 5 — 0.
Karen Williams distributed the Gabriel, Roeder, Smith and Company Minute Master
Services fees for approval.
Trustee Wood expressed concern that the fee range of $1,800 - $2,600 provided from
Gabriel, Roeder and Smith, also had an amount need to exceed $3,000. The Board
discussed that if Gabriel, Roeder exceeded their range of $2,600, they would need to come
to the Board for approval.
It was moved by Trustee Wood and supported by Trustee Kraus to approval the Gabriel,
Roeder, Smith and Company Minute Master Services with fees not to exceed $2,600.
Adopted by the following vote: 5 — 0.
Karen Williams distributed a memo from the Attorney Jack Roberts regarding the FOP 911
Operators' Division ERS Ordinance Memo. Attorney Roberts planned to present the
amendment to the City Council. Attorney John Schneider explained that the amendment
was a housekeeping measure that would include collective bargaining agreements that
have already been passed. This amendment addressed employees in the City's Defined
Contribution Plan who returned to the Employees Retirement System in late 2003 and
early 2004.
Trustee Dedic expressed his intention to refer the amendment and the ERS Draft
Ordinance to the ERS Ordinance Review subcommittee.
Trustee Korkoske suggested an amendment be made to the ERS Draft Ordinance that
would change the time frame to present the actuary report by July 1 to a later time to
provide adequate time to provide the needed data to Gabriel, Roeder for reporting.
Trustee Dedic referred the ERS Draft Ordinance and the FOP 911 amendment memo to
the ERS Ordinance review subcommittee.
Trustee Wood announced that there would be a meeting of the Joint Ad Hoc Committee on
Health Care, May 8. The meeting is scheduled to draft a health care survey to retirees to
determine their views oi, ,prescription drugs, generic versus b,_..id names.
Employees Retirement System
Regular Meeting of April 23, 2009
Page 4
Karen Williams explained that she would have a draft in support of the OPEB legislation at
the next meeting for review.
Attorney Ken Lane advised the Board that Hedge Funds would violate Articles 3, 5 & 6 of
the Investment Policy. Trustee Wood suggested that the Investment Policy be updated
prior to investing in hedge funds.
Karen Williams distributed and reviewed the Investment and Securities Lending Account
report.
It was moved by Trustee Kraus and supported by Trustee Korkoske to adjourn the
meeting.
Adopted by the following vote: 5 -0.
The meeting adjourned at 9:25 a.m.
Minutes approved on S(-2 I 2o0 y
Alnbr6-s,6, Secretary
oyees' Retirement System
C lt�
Robert Antekeier, Chairperson
Employees' Retirement System
OFFICIAL ROCEEDINGS OF TH,_ BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting May 21, 2009
Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:33 a.m.
Present: Antekeier, Dedic, Korkoske, McCaffery, Singleton, Wood - 6.
Absent: Trustees Bernero, Kraus, Murphy
Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Attorney
Ken Lane, Clark Hill (representing the Law Department).
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the Official
minutes of the Employees' Retirement System Regular Meeting of April 21, 2009 with
amendments.
Adopted by the following vote: unanimously
Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refunds(s), O.transfers,
0 retired. Total active membership: 598. Total deferred: 46. Refunds made since the
last regular meeting amounted to $ 5,144.37. Retirement allowances paid for the
month of April, 2009 amounted to $1,483,048.04. Total retirement checks printed
for the ERS System: 790. 0 death(s). Eligible domestic relations orders received:
0. Domestic relations orders pending: 0. Eligible domestic relations orders certified:
0.
There were no requests for Regular Age and Service Retirements.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements
There were no requests for Refunds of Accumulated Contributions
It was moved by Trustee Wood and approved by Trustee Korkoske to excuse Trustees
Kraus and Murphy.
Adopted by the following vote: 6 — 0.
Employees Retiremem (stem
Regular Meeting of May 21, 2009
Page 2
Karen Williams distributed information for an upcoming MAPERS golf outing and
information of the International Conference in Orlando, Florida.
Karen Williams updated the Board regarding the election of the Public Service Department
Trustee. Per the election rules, if there is only one nomination received, that nominee will
be the elected trustees.
Karen Williams distributed an email from Dr. Roth new location and office staff. Dr. Roth is
now working with MES, a management service organization for Physicians in Ypsilanti.
Attorney Lane reported to the Board that Dr. Roth was appointed by resolution and serves
at the pleasure of the Board. Attorney Roberts provided background on the change from
the previous medical director to Dr. Roth. Attorney Roberts advised that the ordinance
does call for a person. Ms. Williams reported to the Board that the last Request for
Proposal for a medical director was in 2004.
Trustee Wood expressed concern that there was no contract with Dr. Roth and suggested
that a contract be drafted. Attorney Roberts suggested an at -will contract with a 30 day
clause.
It was moved by Trustee Wood and supported by Trustee Dedic to request that legal
counsel prepare an at -will contract with Dr. Roth, that a 30 day clause.
Adopted by the following vote: 6 — 0.
Karen Williams reported to the Board regarding the Duty Disability Income Verifications.
One duty disability retiree has not reported. The Board agreed to at last month's meeting
to send a second notice, granting an additional two weeks to report. The Board agrees to
suspend pensions of those duty disability retirees until they report their outside income.
Attorney Jack Roberts reviewed a memo from the Budget Direct Angela Bennett regarding
the City Council Staff Pension Multiplier Change. The change would affect staff members
who had a multiplier of 1.6 and was hired after 1990. An actuarial evaluation was prepared
for the Teamster 214 and the Budget director used the same assumption to estimate the
liability for the City Council Staff. Attorney Roberts advised that acknowledgment the
liability will not impact the retirement system, but will affect the City's annual ERS pension
contribution. (See Attached memo). Attorney Roberts requested approval for the change
in multiplier consistent with the approval for Teamster 214 change.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the change of
the retirement system factor from 1.6% to 1.8% for the city council staff, recognizing that
there will not be an adverse effect on the fund as reported by the actuary done for
Teamster 214, and recommendations from the Budget director and City Attorney's Office.
Trustee Korkoske inquired why the change in multiplier will not have an impact on the
retirement system. Attorney Roberts advised that the difference in the cost will be paid by
the City, not the retirement system.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of May 21, 2009
Page 3
Trustee Wood requested that the memo from the Attorney Jack Roberts regarding the FOP
911 Operators' Division ERS Ordinance change be approved in subcommittee. Trustee
Wood reported that the amendment has been presented to the City Council. Attorney Jack
Roberts explained that the amendment was a housekeeping measure that would include
collective bargaining agreements that have already been passed. This amendment
addressed employees in the City's Defined Contribution Plan who returned to the
Employees Retirement System in late 2003 and early 2004.
Trustee Wood reported to the Board that the Joint Ad Hoc Committee on Health Care met
and considered sending a letter to all retirees regarding generic drugs. The letter would be
signed and endorsed by notable retirees, explaining the benefits of generic drugs. The
goal is to have a draft at the next meeting, so that a letter can be mailed, July 1.
Karen Williams distributed a draft of a letter supporting OPEB to the State of Michigan
legislative representatives. Trustee Dedic reviewed the UAW positions on the OPEB
legislation and explained that the union is neutral on the bills.
The meeting recessed at 9:08 for the Joint ERS and Police and Fire meeting.
The meeting adjourned at 11:29 a.m
Minutes approved on 6 Z/g
Robert Antekeier, Chairperson
Employees' Retirement System
.i
J#rry Ambrose, Secretary
Employees' Retirement System
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
May 12, 2009
Tuesday, 8:30 a.m.
The Board met in regular session and was called to order at 8:33 a.m.
Present: Trustees Benson, Hecksel, Holliday, Kraus, Oleson, St. Aubin, Wood - 7.
Absent: Trustee Bernero
Others: Karen E. Williams, Finance Department; Attorney Jack Roberts, City Attorneys
Office; Attorney Ken Lane, Clark Hill Law Office (representing : the Law--.
Department); Mr. Timothy Salinas, Lansing Fire Department.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of. April 21,
2009 as amended.
Adopted by the following vote: unanimously.
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 0
refund(s), 0 transfers, 0 retired. Total: Active membership: 475. 2
death(s). Jennie Horiszny, Fire, died 4/12/2009, age 89, spouse of retiree;
Charles W. Zerkle, Fire, died 4/18/2009, age 81, spouse to receive 50%.
Refunds made since the last regular meeting amounted to $ 0.00.
Retirement allowances paid for the month of April, 2009 amounted to
$1,781,756,40. Total retirement checks printed for the P&F System: 629.
Total retirement checks printed for both systems: 1419. Domestic relations
order received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
Trustee Holliday moved to pending items and requested updates. Trustee Kraus
reported to the Board that the draft for the Actuary Bid Process was sent to legal
counsel for review. Trustee Wood reported to the Board that the Joint AdHoc Health
Care Subcommittee met last week and decided to draft a letter to retirees describing the
benefits of generic drugs instead of conducting a survey. The subcommittee would like
to have influential retirees sign and endorse the letter. Karen Williams reported that
Asset Consulting Group is coming to the Joint Meeting to discussed hedge funds.
Karen Williams distributed a draft letter supporting OPEB and requested amendments
from the Board. The Board reviewed the letter and suggested changes. The draft will
be sent to the Employees Retirement System Board for review.
Regular Meeting May 12, 2009
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
Trustee Wood asked to be excused for the meeting.
It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the
following Application for Regular Age and Service Retirements:
Michael Wilson, Fire Department, 25 years of service credits, age 48,
effective May 15, 2009. (Purchased one month of universal buy -in time)
Adopted by the following vote: 6 — 0.
There were no requests for Non Duty Disability Retirements.
There were no refunds of accumulated contributions.
Karen Williams distributed MAPERS Spring Conference golf confirmations and
reviewed the dinner confirmations.
Mr. Timothy Salinas distributed information regarding his concern for Eligible Domestic
Relations Orders (EDRO) and how it affects his pension. Mr. Salinas provided
background expressing dissatisfaction with how the alternate payee's amount was
calculated. Mr. Salinas reviewed a series of letters from and to his attorneys, and from
the City of Lansing Retirement Office. Mr. Salinas believed that his Eligible Domestic
Relations Orders was being misinterpreted.
Ms. Williams explained that the Retirement Office does not calculate the alternate
payee amounts. The alternate payee amount is calculated by the actuary. Ms. Williams
only provided an estimate for Mr. Salinas' pension payments.
Attorney Jack Roberts reviewed Mr. Salinas' information and advised that the verbiage
in the EDRO- is confusing, as are most EDROs. Attorney Roberts explained the actuary
calculates the alternate payee based upon the EDRO provided, not the Retirement
Office. Attorney Roberts provided an overview of Eligible Domestic Relations Order
process and how alternate amounts are calculated. Attorney Roberts suggested waiting
until the actuary calculates the alternate payee amount. He was advised by the
Retirement Office that the alternate payee has requested and paid for a calculation.
Attorney Roberts reviewed the Board Policies regarding EDROs. Attorney Roberts
requested that Mr. Salinas submit a copy of his divorce decree to the City Attorney's
Office for review.
Karen Williams updated the Board regarding the Income Verification for Duty Disability
retirees. There were four retirees who did not report. The Board agreed to suspend the
pension for non -reporting duty disability retirees until their income verification forms
were completed.
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, MI
Trustee Wood returned to the meeting.
i
May 12, 2009
Tuesday, 8:30 a.m.
Page Three
Attorney Ken Lane reviewed the Disability re-examination policy regarding the use of a
private investigator. The Board discussed having pre -approved private investigation
firms and disclosure of former officers from certain counties that have been hired.
It was moved by Trustee Hecksel and supported by Trustee Oleson to adopt the
Disability Re-examination Policy and that it supersedes all other Disability Re-
examination policies. The 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
Karen Williams distributed an email regarding Dr. Roth's new location. He will be
working from Barrons Medical Building in Ypsilanti. Ms. Williams has discussed the
new arrangements with the staff who will be handling Dr. Roth's cases. The price per
evaluation will remain at $550.00.
Attorney Ken Lane advised that Dr. Roth was approved by resolution. Trustee Kraus
suggested that a Medical Director bid process be considered. Attorney Lane suggested
a contract with Dr. Roth.
Attorney Ken Lane reviewed the changes in the updated Eligible Domestic Relations
Order (EDRO) form. It is a suggested from prepared by Gabriel, Roeder, Smith and
Company attached to the Board Policy. Attorney Lane will provide a new form for the
Board's approval to be included with the Board's policy.
Trustee Hecksel suggested that the Board's disability subcommittee draft a letter to the
active members and retirees regarding the new re-examination process.
Attorney Ken Lane distributed a memo and advised that the disability subcommittee can
go into closed session to discuss private investigation information regarding retirees,
provided that expenses do not exceed $750.
Ms. Karen Williams distributed and reviewed the Securities Lending Account Report.
It was moved by Trustee Hecksel and supported by Trustee Kraus to adjourn the
meeting.
The meeting adjourned at 10:15 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 June 18,: 2009
Council Conference Room Thursday, 8':3'0 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:37 a.m. =
Present: Antekeier, Korkoske, Kraus, Singleton, Wood — 5 - 0. Y
Absent: Trustees Bernero, Dedic, McCaffery, Murphy
Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department; Attorney
Ken Lane, Clark Hill (representing the Law Department).
It was moved by Trustee Wood and supported by Trustee Singleton to approve the Official
minutes of the Employees' Retirement System Regular Meeting of May 21, 2009.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Wood and supported by Trustee Singleton to approve the Official
minutes of the Joint City of Lansing Police and Fire and the Employees Retirement System
Board Meeting of May 21, 2009.
Adopted by the following vote: 5 - 0.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers,
0 retired. Total active membership: 599. Total deferred: 46. Refunds made since the
last regular meeting amounted to $ 0.00. Retirement allowances paid for the
month of May, 2009 amounted to $1,486,201.39. Total retirement checks printed for
the ERS System: 791. 2 death(s). Amelia Woodruff, (NonBargaining, retired
4/5/1980), age 92, died 5/23/2009; Mr. Max J. Franks, (Public Service —T580 Sup),
retired 6/17/1988, age 75, died 5/29/2009, spouse to receive 50%. Eligible
domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the
following request for the Regular Age and Service Retirement:
Patricia A. Relyea (Teamster 580), 19 years, 4 months, age 58, effective June 13, 2009.
Adopted by the following vote: 5 — 0.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements
Employees Retirement System
Regular Meeting of June 18, 2009
Page 2
There were no requests for Refunds of Accumulated Contributions
It was moved by Trustee Wood and approved by Trustee Korkoske to excuse Trustees
Dedic, McCaffery and Murphy.
Adopted by the following vote: 6 — 0.
Trustee Wood reported to the Board that she requested that the City Attorney provide a
listing of pending ordinances before the City Council. The City Attorney provided a book
to the City Council that included the Employees Retirement Ordinance Draft and Police and
Fire Retirement Ordinance Draft. Trustee Wood had concerns that council members could
pull ordinances out of the book to work on in committee. This concern was discussed in
the Police and Fire Retirement Board meeting and legal counsel spoke with the City
Attorney. The City Attorney provided an email to the City Council to remove the drafts.
Trustee Wood requested that legal counsel request that the City Attorney provide an
official memo, in addition to the email, to remove the draft ordinances from the book
Karen Williams reported to the Board that Trustee Antekeier was re-elected as Public
Service Trustee. Karen Williams distributed the posting that announces the results of the
election.
Karen Williams distributed a letter from Representative Joan Bauer in response to the Joint
Retirement Board letter requesting her support for the OPEB legislation. Representative
Bauer suggested that the Board send a letter to the chair person of the Senate Committee
to urge support for the passage of the OPEB legislation. The Employees Retirement
Board requested that a joint letter of support be mailed to the Senate chairperson.
Trustee Korkoske reported to the Board that the City contributed excess monies to the
Retirement System based upon an estimate for the 2008 contributions. Trustee Korkoske
informed the Board that the excess monies will be booked as a prepaid for the 2009
contributions.
Attorney Ken Lane advised that, by statue, the Board is required to acknowledge the
receipt of the Contributions.
It was moved by Trustee Wood and supported Trustee Singleton to accept the report from
accounting regarding the 2008 contributions and that the excess will be booked as prepaid
for the 2009 contributions.
Adopted by the following policy: 5 — 0.
Attorney Ken Lane reviewed the Investment Policy Revision Memo. The changes in
investment policy would add an asset class to allow the Employees Retirement System to
invest in the hedge fund of fund. Trustee Antekeier expressed concern that the revised
asset mix did not add up to 100%. Attorney Ken Lane will submit the Investment policy
and percentages to Asset Consulting Group for review.
Employees Retirement System
Regular Meeting of June 18, 2009
Page 3
Attorney Ken Lane reviewed the Medical Director Draft agreement. Attorney Lane will
update the agreement per suggestion from Trustee Wood regarding the ability to modify
the fee.
Attorney Ken Lane and Clark Hill will be available to review the draft ordinance with the
Special Projects subcommittee. Clark Hill has submitted the investment presentation
policy, annual report policy and how medical documents are handled policy to the City
Attorney's office.
Trustee Wood informed the Board that FOP 911 update to the Ordinance will be before the
City Council. Trustee Wood requested that the Special Projects subcommittee meet to
review the FOP 911 update and provide its recommendation to City Council.
Attorney Ken Lane provided updates to the Trustee Booklets. Attorney Lane informed the
Board that tab 2 is an update of PA 314, tab 3 is an update of PA 88, tab 6 is an updated
EDRO act, tab 17 is the travel policy and tab 12 will be the updated investment policy. The
Board requested that Attorney Lane provide a memo regarding the changes. Trustee
Wood requested that the updates have dates included.
Trustee Wood updated the Board regarding the Prescription Drug letter that will be sent to
retirees. Trustee Wood requested names of respected retirees that would listed on the
letter to endorse the information.
Trustee Kraus updated the Board that the Actuary Bid Proposal was submitted to legal
counsel for review. Attorney John Schneider made some revisions and submitted to the
City Attorney's Office for further review.
The Board discussed reviewing the Hedge Fund materials and selecting two or three
preferred managers at next month's meeting. The Board will also discuss whether to
proceed forward with investing in Hedge Funds. Karen Williams will distribute a glossary
provided by Asset Consulting Group to assist trustee in their review of Hedge Funds.
Karen Williams distributed and reviewed the Investment and Securities Lending Reportfor
the month of May.
The meeting adjourned at 9:38 a.m.
Minutes approved on fl �-''f z009
ryAm rose, Secretary
m oyees' Retirement System
obert Antekeier, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting July 23, 2009
Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:38 a.m.
Present: Antekeier, Dedic, Kraus, McCaffery, Murphy via phone, Wood (9:04) — 6.
Absent: Trustees Bernero, Korkoske, Singleton
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the Off, icial;
minutes of the Employees' Retirement System Regular Meeting of June 18, 2009.
Adopted by the following vote: 5 — 0.
Mr. Merl McVay, UAW, addressed the board to consider adding 8 service credits to his
retirement status. Mr. McVay distributed his documents indicating his City employment
and seniority for the board's review. Mr. McVay was not given a promotion due to his
seniority that would have provided him with the 8 service credits that he is requesting.
The Board referred the documents and Mr. McVay's request to legal counsel for review.
Mr. McVay's distributed documents were returned to the Retirement Analyst.
The Board lost its quorum and continued to meet in the committee of the whole.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers,
1 retired. Total active membership: 596. Total deferred: 47. Refunds made since the
last regular meeting amounted to $ 0.00. Retirement allowances paid for the
month of June, 2009 amounted to $1,482,667.53. Total retirement checks printed
for the ERS System: 791. 1 death(s). Herbert R. Davidson, Finance (Exempt,
retired 8/13/1988), age 86, died 6/9/2009, spouse to receive 100%. Eligible
domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
The quorum was restored when Trustee Murphy called into the meeting.
There were no requests for Regular Age & Service Retirement.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements
Employees Retirement System
Regular Meeting of July 23, 2009
Page 2
There were no requests for Refunds of Accumulated Contributions.
It was moved by Trustee Murphy and supported by Trustee Dedic to excuse Trustees
Korkoske, Singleton, and Wood.
Adopted by the following vote: 5 — 0.
Karen Williams distributed MAPERS 2009 Fall Conference information. Ms. Williams also
requested permission to attend the Fall Conference, September 13 -15. Past practice has
been for the Employees Retirement System and the Police and Fire Retirement System
boards to split the cost. Trustee Dedic inquired for the record when was the last time that
the retirement analyst attended a conference. Ms. Williams stated that this conference
would be her first.
It was moved by Trustee Dedic and supported by Trustee McCaffery for the Retirement
Analyst to attend the 2009 MAPERS Fall Conference and that the cost of her attendance
will be split with the Police and Fire Retirement System Board.
Adopted by the following vote: 5 — 0.
Mr. John Jackson of Asset Consulting Group provided an overview of hedge funds. Mr.
Jackson provided a background of the Hedge Fund Investment Strategies, and a review of
the manager selection process.
Trustee Wood arrived at the meeting during the Hedge Fund Discussion.
Mr. Jackson suggested that the Board first decide to proceed with Hedge Fund. Asset
Consulting believes that Long Short Hedge Fund of Fund would be a prudent investment to
further diversify the Employees Retirement System portfolio.
Trustee Dedic requested an update regarding the Police and Fire Retirement System
Board's decision regarding Hedge Funds. Trustee Kraus reported that the Police and Fire
Board approved moving forward with hedge fund and starting at 2.5% of the portfolio as an
investment. The Police and Fire Board would have the option to provide additional
revenues to the hedge fund of up to a maximum of 5%. Trustee Kraus further reported
that the Police and Fire Board chose three firms to interview.
It was moved by Trustee Wood and support by Trustee Dedic to add long/short hedge fund
of funds to the Employees Retirement System portfolio with a maximum allocation of 5%.
The investment would start with an increment of 2.5% and that any additional allocation or
revenues can stay in the fund, not to exceed the 5%.
Adopted by the following vote: 5 yes, 1 no.
Mr. John Jackson suggested that a meeting be set up to interview Hedge Fund Firms,
August 17, 2009 prior to the Boards' Joint meeting. Mr. Jackson stated that the hedge
fund would come from the large cap equity allocation.
Employees Retirement System
Regular Meeting of July 23, 2009
Page 3
Mr. John Jackson reviewed the five individual managers and suggested that the Board
select two to three managers to interview. Mr. Jackson reviewed Attalus, Common Sense,
Grosvenor, K2 and Private Advisors. The Board agreed to interview, Common Sense, K2
and Private Advisors.
Mr. Jackson suggested that the meeting start from 10 a.m. — 3 p.m. on Monday, August
17, 2009 to interview the managers with a short break for lunch.
Attorney Ken Lane reported to the Board that he will work with Mr. John Jackson to amend
the Investment Policy to include hedge funds. Attorney Ken Lane provided a memo
detailing the updated legislation in the Trustee Handbook.
Attorney Ken Lane updated the Board regarding the Qualified Plan Documents. The
pending policies will be prepared and available to the Special Projects subcommittee.
Karen Williams distributed the Gabriel, Roeder, and Smith Fees for the 2009/2010 contract
year. The Board reviewed the fee schedules for Actuarial services, Eligible Domestic
Relations Orders and Minute Master.
Trustee Wood expressed concern overthe increase in the Minute Master fees, and the not
to exceed maximum was greater than the quoted range. Trustee Wood and Trustee Kraus
also inquired and expressed concern about the Eligible Domestic Relations Orders,
requesting that Gabriel, Roeder, and Smith detail the increase in fees.
The Board agreed to draft a letter to be mailed to Gabriel, Roeder, Smith that requests fees
and rates be maintained at their 2008/2009 level. The Chair requested that the retirement
analyst draft a letter for review.
It was moved by Trustee Murphy and supported by Trustee Wood to draft a letter to
Gabriel, Roeder, Smith that requests actuarial fees and rates be maintained at their
2008/2009 level.
Adopted by the following vote: 6 -0.
Trustee Dedic provided a Special Projects Committee report. Ms. Williams distributed the
proposed Joint ERS, and Police and Fire Credit Card Policy. Trustee Wood further
explained the amended Credit Card Policy that would allow the vice chair to have a Board
credit card.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the new ERS
Credit Card Policy that would allow the vice chairperson to have a Board credit card and
that it supersedes all other Credit Card Policies. This policy shall be attached to the
minutes and also file sin the policy book with the date of the motion of adoption shown
thereon.
Adopted by the following vote: 6 -0
Employees Retirement System
Regular Meeting of July 23, 2009
Page 4
Trustee Dedic explained proposed updates to the Retirement Board. The subcommittee
reviewed various retirement websites for ideas. The Special Projects Subcommittee voted
to add the Trustees contact information to the website: names, titles, positions, terms of
office, emails. Additionally, the subcommittee would like to have Retirement Board
Information business cards, similar to a Jobs Hotline card. Trustee Wood requested that
cards should be made at a union shop.
It was moved by Trustee Dedic and supported by Trustee Wood to allocate monies have a
Retirement Board Information business card prepared at a union shop.
Adopted by the following vote: 6 — 0.
Trustee Wood reported from the Special Projects Subcommittee that the FOP 911
Operators' Division ERS Ordinance Amendment was discussed. This amendment is a
"housekeeping measure" that reflected the return of the FOP 911 bargaining units to the
Employees Retirement System defined benefit plan. Trustee Wood reported that Attorney
Jack Roberts reviewed the amendment that makes the ordinance current with the FOP 911
contract. Trustee Wood requested an affirmation from the ERS Board.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the FOP 911
Operators' Division ERS Ordinance Amendment.
Adopted by the following vote: 6 -0.
Trustee Wood requested that a letter of support or memo for the FOP 911 Operators'
Division ERS Ordinance amendment be sent to the City Council.
Trustee Wood updated the Board that a drafted is being prepared for the Retiree Health
Care Generic Drug letter and add the prominent names suggested by the ERS Board.
Trustee Kraus updated the Board that the Actuary Bid Process proposal had been
reviewed by legal counsel. Trustee Kraus asked legal counsel to hold the proposal until
the September meeting, after the hedge fund interview and discussions are completed.
Attorney Ken Lane reviewed the Medical Director Draft Contract. Trustee Wood inquired
about the fee schedule for the medical director's evaluations. The Retirement analyst
provided the current fees of $500 for examinations, and $300 for re-examinations.
It was moved by Trustee Wood and supported Trustee Dedic to add current fees of $500
for examinations, and $300 for re-examinations to the Medical Director Contract.
Adopted by the following vote: 6 -0.
Karen Williams distributed and reviewed the monthly administrative fee and Securities
Lending Report for the month of June.
Mr. John Jackson reviewed the Investment Report for the month of June.
Attorney Ken Lane reported that he would keep the board updated on proposed changes
to Public Act 314.
The meeting adjourned at 10:12 a.m.
Minutes approved on
Jerry—),mbr se,'Secretary
Em pyee ' Retirement System
Robert Antekeier, Chairperson
pEmployees' Retirement System
i
OFFICIAL PROCEEDINGS OF�THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
July 21, 2009
Tuesday, 8:30 a.m.
The Board met in regular session and was called to order at 8:33 a.m.
Present: Trustees Benson, Hecksel, Holliday (8:34), Kraus, Oleson, St. Aubin, Wood —
7.
Absent: Trustee Bernero
Others: Karen E. Williams, Finance Department; John Jackson, Asset Consulting
Group; Attorney Ken Lane, Clark Hill Law Office (representing the Law
Department).
Vice Chair, Trustee St. Aubin began the meeting.
It was moved by Trustee Benson and supported by Trustee Hecksel to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of June --16,
2009.
Adopted by the following vote: 7 — 0.
Trustee Holliday arrived and the meeting was turned over to the chairperson.
Trustee Wood reported to the Board that the City Attorney's Office has pulled the Police
and Fire Draft Retirement Ordinance from the City Council pending book. The City
Attorney's Office apologized for the confusion and provided an email and formal request
to withdraw the draft.
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 0
refund(s), 0 transfers, 4 retired. Total: Active membership: 471. 0
death(s). Refunds made since the last regular meeting amounted to $
0.00. Retirement allowances paid for the month of June, 2009
amounted to $1,783,019.27. Total retirement checks printed for the P&F
System: 630. Total retirement checks printed for both systems: 1421.
Domestic relations order received: 1. Domestic relations orders
pending: 0. Eligible domestic relations orders certified: 0.
I
I
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
:July 21, 2009
Tuesday, 8:30 a.m.
Page Two
Mr. Robert Hecksel inquired about the Domestic Relations Order received. Ms.
Williams explained how the Domestic Relations Orders are processed by the
Retirement Office.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
following Application for Regular Age and Service Retirements:
Timothy A. Salinas, Fire Department, 25 years of service, age 48,
effective July 10, 2009.
Adopted by the following vote: 7 — 0.
There were no requests for Non Duty Disability Retirements.
There were no requests for refunds of accumulated contributions.
Trustee Benson and Trustee Wood reported to the Board that they had to leave the
meeting early.
Karen Williams reminded Board members regarding the International Federation of
Employees Benefits Plans Conference in November in Orlando, Florida, and the
NCPERS Public Safety Conference in October 11 -14 in Palm Springs, California.
Trustee Wood suggested that the Board adopt a policy that conference attendees
provide a report regarding the training received. Trustee Wood expressed concern that
information be on file validating the training. Trustee St. Aubin suggested having a file
for each Trustee that would contain a report or certificate from the conference attended.
Trustee St. Aubin stated that instead of a policy the Board can make the above
suggestions a formal practice.
Karen Williams distributed information regarding the Long Short Fund of Funds
Managers Search. Mr. John Jackson of Asset Consulting Group provided an overview
of hedge funds. Mr. Jackson provided a background of the Hedge Fund Investment
Strategies, and a review of the manager selection process.
Trustee Benson left the meeting during the Hedge Fund Discussion.
Mr. Jackson suggested that the Board first decide to proceed with Hedge Fund. Asset
Consulting believes that Long Short Hedge Fund of Fund would be a prudent
investment to further diversify the Employees Retirement System portfolio.
Mr. Jackson and the Board discussed comfort levels and allocation ranges for the
Hedge fund investments.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
July 21,2009
Tuesday, 8:30 a.m.
Page Three
It was moved by Trustee Hecksel and support by Trustee Kraus to amend the
Investment Policy to add global long/short equity to the Police and Fire Retirement
System portfolio with a maximum allocation of 5%. The investment would start with an
increment of 2.5% and the differential would be taken from the Large Cap Equity, not to
exceed the 5%.
Adopted by the following vote: 6 -0.
Trustee Bruce Holliday suggested that a meeting be set up to interview Hedge Fund
Firms prior to the Boards' Joint meeting.
Mr. John Jackson reviewed the five individual managers and suggested that the Board
select two to three managers to interview. Mr. Jackson reviewed Attalus, Common
Sense, Grosvenor, K2 and Private Advisors. The Board agreed to interview, Common
Sense, Attalus, and Private Advisors.
Attorney Ken Lane reported to the Board that he will work with Mr. John Jackson to
amend the Investment Policy to include hedge funds.
Attorney Ken Lane updated the Board regarding the draft ordinance and policies. The
drafts will be available for the next special projects committee meeting. Attorney Ken
Lane provided a memo detailing the updated legislation in the Trustee Handbook.
Attorney Ken Lane reviewed the Medical Director Draft Contract. Attorney Lane will
provide an updated contract with the current fees. The Retirement analyst provided the
current fees of $550 for examinations, and $300 for re-examinations.
It was moved by Trustee Wood and supported Trustee Oleson to amend the Medical
Director Contract with the current fees of $550 for examinations, and $300 for re-
examinations.
Adopted by the following vote: 6 -0.
Karen Williams distributed the Gabriel, Roeder and Smith Fees for the 2009/2010
contract year. The Board reviewed the fee schedules for Actuarial services, Eligible
Domestic Relations Orders and Minute Master.
Trustee Wood expressed concern over the increase in the Minute Master fees, and the
not to exceed maximum was greater than the quoted range. Trustee Wood suggested
that the proposed fee should not exceed the 2008 level. Trustee Wood requested an
explanation from the Gabriel, Roeder and Smith that details the fee increases
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
July 21, 2009
Tuesday, 8:30 a.m.
Page Four
Trustee Hecksel requested permission to place an item on the agenda. Permission was
granted and Trustee Oleson reported to the Board that he would like legal counsel to
prepare a written definition of "creditable and verifiable." The Board discussed this item
and expressed concerned that a definition could be limiting. The Board agreed that the
subcommittee would review information on a case -by -case basis to determine what is
"creditable and verifiable."
Trustee Wood left the meeting.
Trustee Kraus updated the Board that the Actuary Bid Process proposal had been
reviewed by legal counsel. Trustee Kraus asked legal counsel to hold the proposal
until the September meeting, after the hedge fund interview and discussions are
completed.
Trustee Brad St. Aubin provided the Special Projects Subcommittee to the Board.
Trustee St. Aubin reviewed the waiver of spousal rights to pension benefits form and the
updated beneficiary nomination form for the Police and Fire Retirement System. The
subcommittee recommended that the forms be adopted.
It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve the
Waiver of Spousal Rights to Pension Benefits form.
Adopted by the following vote: 5 — 0.
It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve the
Beneficiary Nomination form for the Police and Fire Retirement System.
Adopted by the following vote: 5 - 0
Trustee St. Aubin also recommended the adoption of the amended Joint ERS and
Police and Fire Credit Card Policy. The amendment would allow the vice chair to have
a credit card also.
Adopted by the following vote: 5 — 0.
Karen Williams provided an update regarding Private Investigator for the disability re-
examination process. The Retirement Office has received information and requests
from Private Investigation firms who would like to be considered by the Police and Fire
Board. The Retirement Office is keeping a list of interested parties.
Attorney Ken Lane advised the Disability Subcommittee can discuss investigations in
closed session. Attorney Lane further proposed an amendment to the Disability Re-
examination policy that the subcommittee can give investigations a case or file number
to maintain confidentiality, when discussing the information in Board meetings.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
July 21, 2009
Tuesday, 8:30 a.m
Page Five
It was moved by Trustee Hecksel and supported by Trustee Kraus to amend the current
Disability Re-examination policy to include the process to keep investigations
confidential.
Adopted by the following vote: 5 — 0.
Karen Williams distributed and reviewed the monthly administrative fee and Securities
Lending Report for the month of June.
Mr. John Jackson reviewed the Investment Report for the month of June.
The meeting adjourned at 10:41 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
OFFICIAL PkOCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING , t:
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting August 20, 2009
Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:41 a.m.
Present: Antekeier, Dedic, Korkoske, Kraus (via Phone 8:44), McCaffery, Wood — 6.
Absent: Trustees Bernero, Korkoske, Singleton
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
Trustee Antekeier announced that Trustee Kraus would be joining the meeting by phone.
Trustee Kraus called into the meeting.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the Official
minutes of the Employees' Retirement System Regular Meeting of July 23, 2009.
Adopted by the following vote: 6 — 0.
There were no comments public comments for items on the Agenda.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refunds(s), 0 transfers,
0 retired. Total active membership: 593. Total deferred: 48. Refunds made since the
last regular meeting amounted to $ 0.00. Retirement allowances paid for the
month of July, 2009 amounted to $1,483,173.50. Total retirement checks printed for
the ERS System: 791. 0 death(s). Eligible domestic relations orders received: 0.
Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0.
There were no requests for Regular Age & Service Retirement.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements.
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the
Request for Refund of Accumulated Contributions: Sheila Wheeler, Finance (Teamster
580 CTP) - $19,313.
It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Trustee
Murphy from the Employees Retirement System Board Meeting.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of August 20, 2009
Page 2
Karen Williams distributed MAPERS 2009 Fall Conference registration and hotel
confirmation information.
Karen Williams distributed an updated investment policy sheet from John Jackson for
approval. Attorney Kenneth Lane reviewed the update and the amendments to the
Investment Policy. Attorney Lane advised that he was comfortable with the wording.
It was moved by Trustee Dedic and supported by Trustee Kraus to accept the
amendments to the Employees Retirement System Board Investment Policy as presented.
Adopted by the following vote: 6 — 0.
Trustee Kraus provided an Investment Subcommittee Report. Trustee Kraus reported that
that the Joint Investment Subcommittee interviewed four managers. The Investment
Subcommittee selected two managers, Common Sense and Private Advisors for further
discussion. The subcommittee recommended Private Advisors to the full Employees
Retirement System Board.
It was moved by Trustee Kraus and supported by Trustee Wood that the Employees
Retirement System Board will hire Private Advisors as its manager for the Hedge Fund of
Funds Investment. Trustee Wood added a friendly amendment that the initial investment
would be 2.5%.
Adopted by the following vote: 5 — 1.
Trustee Kraus left the meeting.
Attorney Kenneth Lane advised the Board that Asset Consulting Group will prepare the
contracts and forward them to legal counsel for review.
It was moved by Trustee Wood and supported by Trustee Korkoske that before any
- investment -into hedge funds are completed, legal counsel. will ,review. and, approve. the
contracts.
Adopted by the following vote: 5 — 0.
Attorney Lane distributed and reviewed handouts for the Trustee Books. Attorney Lane
reviewed the proposed changes for the PA 314 legislation.
Attorney Lane reported that the Ordinance has been prepared for review by the Ordinance
Changes Subcommittee.
Karen Williams distributed a draft requesting
the IeGebrielr for Roeduer, Smith maintain the
same fees as last year. The Board approved
Employees Retirement Sy,,tern
Regular Meeting of August 20, 2009
Page 3
Mr. David Fish, a retiree sent a letter to the Board requesting to be placed on duty
disability. Ms. Williams forwarded the letter to the City Attorney's Office for review and a
response.
It was moved by Trustee Wood and supported by Trustee Korkoske to refer officially refer
the retiree letter to legal counsel for review and response.
Adopted by the following vote: 5 — 0.
Mr. Eric Tumberella provided an overview of the Retirement web page statistics. Trustee
Wood discussed that the Special Projects subcommittee had reviewed other retirement
web sites and found items that can be added to the city's web page. Mr. Tumberella
requested a list of items that the Board is interested in adding to the internet page.
Karen Williams suggested adding retirement calculators, and making the retirement page
easier to locate. The Board discussed establishing links for current employees, and
including Trustee and Board information to the site.
Mr. Eric Tumberella stated that he could change to homepage location to
lansingmi.aov/retirement to make the page easier to locate.
The Board requested the homepage location page, retirement office email, and city wide
email announcement regarding the website.
Trustee Wood reported that the Retiree Health Care Generic Drug letter is being drafted
with the suggested names.
Trustee Wood reported that Trustee Kraus emailed that legal counsel had reviewed the
Request for Proposal for Actuary and that information would be reviewed by the Special
Projects subcommittee.
Trustee Antekeier contact Dr. Roth to inform of the medical agreement. The ERS Board
requested with a joint cover letter to Dr. Roth with the agreement.
Mr. Korkoske stated that he has requested a credit card for the vice chair to comply with
the new board policy.
Attorney Ken Lane reported that legal counsel is providing a response to Mr. Merl McVay
who addressed the Board at July's meeting.
Karen Williams distributed and reviewed the monthly administrative fee and Securities
Lending Report for the month of July.
Asset Consulting Group provided a recommendation for the quarterly cash withdrawal to
take $4,000,000 from Western Asset Management. Additionally, Karen Williams
requested $5,000 for quarterly cash withdrawal for administrative expenses to the
Comerica account.
Employees Retirement System
Regular Meeting of August 20, 2009
Page 4
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the
quarterly cash flow withdrawal of $4,000,000 from Western Asset Management as
recommended by Asset Consulting Group.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the quarterly
cash flow withdrawal of $5,000 for Administrative Expenses deposited to the Comerica
Account.
Adopted by the following vote: 5 — 0.
Asset Consulting Group also recommended that the Employees Retirement System
requested that the UBS quarterly redemptions be suspended. The real estate investments
are not below 5%.
The meeting adjourned at 10:01 a.m.
Minutes approved on 17 ZC) 9
Robert Antekeier, Chairperson
Employees' Retirement System
A
Jer mbro e, Secretary
Emj�/Ioyees' Retirement System
COMMITTEE OF THE WHOLE OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
August 21, 2009
Tuesday, 8:30 a.m.
The Board met in the Committee of the Whole and was called to order at 8:35 a.m.
Present: Trustees Hecksel, Holliday, Krau's (8:37), Oleson, — 4.
Absent: Trustee Benson, Bernero, St. Aubin, Wood
Others: Karen E. Williams, Finance Department; John Jackson, Asset Consulting
Group; Attorney Ken Lane, Clark Hill Law Office (representing the Law
Department).
The Board did not have a quorum.
Secretary's Report.
0 new fire member(s), 7 new police members, 0 reinstatement(s), 0 refund(s), 0
transfers, 4 retired. Total: Active membership: 474. 1 death(s). Ruth Eddie,
Police, died 7/19/2009, age 92, spouse of retiree. Refunds made since the last
regular meeting amounted to $ 0.00. Retirement allowances paid for the month
of July, 2009 amounted to $1,802,516.03. Total retirement checks printed for the
P&F System: 634. Total retirement checks printed for both systems: 1425.
Domestic relations order received: 0. Domestic relations orders pending: 1.
Eligible domestic relations orders certified: 0.
There were no requests for Non Duty Disability Retirements.
Ms. Williams reported that there was one request for Refund of Accumulated
Contribution for Mr. Johnnie Torres by email. Ms. Williams was waiting for Mr. Torres
signed withdrawal form and his instructions on disbursements.
Karen Williams reminded Board members regarding the MAPERS Conference and
receptions, and the reported that registrations have been made for members for the
NCPERS Public Safety Conference in October 11 -14 in Palm Springs, California.
Attorney Ken Lane reported that the information for the Qualified Plan Documents is
ready for the Special Projects subcommittee. Attorney Lane will email the documents to
committee members for review. The Board discussed dates for the Special Projects
subcommittee.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
August 18, 2009
Tuesday, 8:30 a.m.
Page Two
Attorney Ken Lane reviewed the proposed changes for Public Act 314. Attorney Lane
reported that there are five proposed bills that would address issues such as the
uniform securities acts and travel policy. Attorney Lane Updated the Trustee
Handbooks.
Karen Williams reported that she is working on a joint board letter to include with the
Medical Director agreements to Dr. Roth.
Trustee Hecksel requested a review of the Line of Duty Death Benefits. The item was
referred to the Duty Disability subcommittee. Trustee Hecksel would like to expand the
duty disability re-examination policy to include an investigation of prior service.
Trustee Kraus updated the Board that the Actuary Bid Process proposal had been
reviewed by legal counsel.
Karen Williams distributed and reviewed the monthly administrative fee and Securities
Lending Report for the month of July.
The meeting adjourned at 9:07 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Bruce Holliday, Chairperson
Police & Fire Retirement System
OFFICIAL F ..00EEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM.:
Regular Meeting September 17,-2009
Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:41 a.m.
Present: Antekeier, Dedic, Korkoske, Kraus, McCaffery, Wood — 6.
Absent: Trustees Bernero, Murphy, Singleton
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
It was moved by Trustee Korkoske and supported by Trustee McCaffery to approve the
Official minutes of the Employees' Retirement System Regular Meeting of August 20,
2009.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Korkoske and supported by Trustee Dedic to approve the Official
Minutes of the Joint Police and Fire and the Employees' Retirement System Board Meeting
of August 18, 2009 with amendments.
Adopted by the following vote: 6 — 0.
There were no comments public comments for items on the Agenda.
Secretary's Report. 5 new member(s), 0 reinstatement(s), 1 refunds(s), 0 transfers,
0 retired. Total active membership: 611. Total deferred: 49. Refunds made since the
last regular meeting amounted to $ 19,318.98. Retirement allowances paid for the
month of August, 2009 amounted to.$1,501.,980.73-Total. retirement checks printed
for the ERS System: 794. 2 death(s). Gary Biddinger, died, 9/3/2009 (Planning —
T214, retired 9/15/2005)m age 68, no beneficiary; Mr. Larry Drumheller, died
8/24/2009, Public Service — UAW, retired 4/5/1996), age 69, no surviving
beneficiary. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 1. Eligible domestic relations orders certified: 0.
Employees Retirement System
Regular Meeting of September 17, 2009
Page 2
It was moved by Trustee Wood and supported by Trustee Dedic to approve the following
requests for Regular Age & Service Retirement:
Charles W. Steinberg (T580 CTP), 15 years, 1 month, age 58, effective
September 1, 2009 (From Deferred)
Bo Anthony (UAW), 22 years, age 62, effective September 17, 2009.
Adopted by the following vote: 6 — 0.
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements.
There were no Refunds of Accumulated Contributions.
It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Trustee
Murphy from the Employees Retirement System Board Meeting.
Adopted by the following vote: 6 — 0.
Karen Williams reported to the Board about her attendance at the MAPERS Fall
Conference. Ms. Williams reported that this was her first conference and found the
presentation material very informative. The conference booklet will be kept on file at the
Retirement Office. Ms. Williams discussed the administrative breakfast that dealt with
defining service credits and other time periods. Ms. Williams indicated that trustee can
access information by visiting the MAPERS website.
Trustee Antekeier requested permission to attend the 2009 International Foundation
Conference. Trustee Antekeier stepped down as chair for the vote and Trustee Scott
Dedic presided.
It was moved by Trustee Kraus and supported by Trustee Korkoske to allow Trustee
Antekeier to attend the 2009 International Foundation Conference.
Adopted by the following vote: 6 — 0.
Trustee Antekeier resumed the chair.
Trustee Korkoske reported that Doug Rubley, retiree contacted himself and Trustee
Antekeier regarding the adjusted withholding tables that were a part of the stimulus
package. Mr. Rubley had concerns that the adjusted withholding tables did not apply to
retirees and may have adverse tax consequences. He inquired if retirees had been
notified.
Employees Retirement System
Regular Meeting of September 17, 2009
Page 3
Trustee Korkoske spoke with the Retirement Office and discussed the withholding table.
The IRS required the adjusted withholding table for all employees and retirees. However,
Retirees would not be eligible for the Making Work Pay credit. The Board discussed
sending a letter notifying the retirees regarding the Stimulus Package and how it affected
the withholding tables. Trustee Wood requested that a letter be sent to the administration
to notify retirees of the adjusted withholding tables and that the draft be forwarded to Board
members.
Trustee Antekeier referred the letter to Attorney Kenneth Lane.
Karen Williams provided an update of the Gabriel, Roeder, and Smith Actuarial Fees. In
response to the letter sent by Trustee Antekeier, Gabriel, Roeder and Smith will maintain
Eligible Domestic Relations Order fees at the 2008/2009 through June 2010. However,
Minutes Master fee adjustment should be directed to Mr. Ken Alberts.
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the actuary
quarterly fees and the Eligible Domestic Relations Orders fees.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Wood and supported by Trustee Dedic to draft a letterto Mr. Ken
Alberts approving the Minute Master fees from range of $1,850 to $2,650.
Adopted by the following vote: 6 — 0.
Attorney Kenneth Lane provided a legislative update summarizing Public Act 84 and
pending Michigan Senate and House Bills proposed to amend the Public Employee
Retirement System Investment Act (PA 314).
Trustee Wood requested a policy that investment adviser provide verification that they are
registered advisors and comply with Public Act 84. Attorney Ken Law will draft a policy.
Trustee Antekeier asked that the verification be kept on file.
Attorney Ken Lane provided updates for the Trustee Booklets. Trustee Wood requested
info regarding a policy or memo about closed sessions. Attorney Ken Lane will draft a
memo reviewing closed sessions.
Attorney Kenneth Lane provided an update of the Private Advisors Investments. Attorney
Lane had concerns regarding the agreement and had not completed his review. Attorney
Lane reported that he will provide an update at the next meeting.
Attorney Ken Lane reported that he has prepared draft policies for the Qualified Plan
Documents and the draft ordinance for review by the Ordinance Committee.
Employees Retirement System
Regular Meeting of September 17, 2009
Page 4
Attorney Ken Lane provided an update on Mr. Merl McVay(retiree) letter. Attorney Lane
advised that the Employees Retirement System Board does not have authority to Mr.
McVay's request for additional service credits. Mr. McVay will be informed by letter from
legal counsel.
Trustee Kraus requested an update on Mr. David Fish. Karen Williams reported that Mr.
Fish retired in 2006 and recently sent a letter requesting that he be retroactively placed on
duty disability. The issue was referred to legal counsel.
Karen Williams distributed and reviewed the Investment Report and Securities Lending
Report for the month of August.
The meeting adjourned at 10:01 a.m.
Minutes approved on 1a�z',��
y Arvbrose, Secretary
ployees' Retirement System
Robert Antekeier, Chairperson
Employees' Retirement System
THE OFFICIAL MINUTES OF THE
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
September 22, 2009
Tuesday, 8:30 a.m.
The Board met in the regular session and was called to order at 8:34 a.m.
Present: Trustees Benson, Hecksel, Holliday, Kraus, Oleson, St. Aubin, Wood — 7.
Absent: Trustee Bernero
Others: Karen E. Williams, Tom Korkoske, Finance Department; John Jackson, Asset
Consulting Group; Attorney Ken Lane, Clark Hill Law Office (representing the
Law Department).
It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve the.
Official Minutes of the Police and Fire Retirement System Board meeting of July.21,
2009.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Oleson and supported by Trustee Kraus to approve the
Committee of the Whole Minutes of the Police and Fire Retirement System Board
meeting of August 18, 2009.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Kraus and supported by Trustee Oleson to approve the Official
Minutes of the Joint Police and Fire Retirement System and the Employees Retirement
System Board Meeting of August 18, 2009.
Adopted by the following vote: 7 — 0.
There were no public comments for items on the Agenda.
Secretary's Report.
0 new fire member(s), 7 new police members, 0 reinstatement(s), 0
refund(s), 0 transfers, 4 retired. Total: Active membership: 474. 1 death(s).
Larry D. Earls, Fire, died 8/24/2009, age 67, spouse to receive 50%. Refunds
made since the last regular meeting amounted to $ 0.00. Retirement
allowances paid for the month of August, 2009 amounted to $1,819,367.21.
Total retirement checks printed for the P&F System: 637. Total retirement
checks printed for both systems: 1431. Domestic relations order received: 0.
Domestic relations orders pending: 1. Eligible domestic relations orders
certified: 0.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
September 22, 2009
Tuesday, 8:30 a.m.
Page Two
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
following applications for Regular Age and Service Retirements:
Leon G. Parker, Fire Department, 25 years, 6 months of service, age 51,
effective July 19, 2009.
Timothy B. Moede, Fire Department, 25 years, 1 month of service, age 55,
effective August 15, 2009.
John V. Stafford, Fire Department, 25 years of service, age 57,
effective August 16, 2009.
Curtis A. Stewart, Fire Department, 25 years of service, age 47,
effective August 16, 2009.
Ronald A. Finley, Fire Department, 25 years of service, age 55,
effective September 3, 2009.
Approved by the following vote: 7 — 0.
Trustee Holliday recused himself as chair for the following vote. Trustee St. Aubin
presided over the vote.
It was moved by Trustee Kraus and supported by Trustee Oleson to approve the
following application for Regular Age and Service Retirement:
Bruce J. Holliday, Police Department, 25 years, 2 months of service, age 48
effective September 26, 2009.
Approved by the following vote: 6 — 0.
It was moved by Trustee Hecksel and supported by Trustee Oleson for Trustee Holliday
to resume chairmanship.
Adopted by the following vote: 6 - 0.
There were no requests for Non Duty Disability Retirements.
Ms. Williams reported that there were two requests for Refund of Accumulated
Contribution: Mr. Johnnie Torres, Police, $60,270.31 and Mr. Eric L. Frechen, Police,
$17,032.28.
Trustee Hecksel requested information on Mr. Frechen's and Mr. Torres' request for his
refund of accumulated contribution. Trustee St. Aubin reported that Mr. Frechen was
terminated and the union has filed a grievance. Mr. Frechen if reinstated would have to
i
Irepay the refund.
Regular Meeting September 22, 2009
City Council Chambers Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Mr. Torres' informed the Board that he had submitted a MERS form. Mr. Torres may
need to send additional forms to have money transferred from one plan to another. It is
the Board's understanding that the refund will not be disbursed until the appropriate
forms are in place to execute a plan to plan transfer.
It was moved by Trustee Kraus and supported by Trustee Wood to approve the Refund
of Accumulated Contribution requests for Mr. Johnnie Torres and Mr. Erich L. Frechen.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse Trustee
Benson, Trustee St. Aubin and Trustee Wood from the Police and Fire Retirement
Board meeting of August 18, 2009.
Adopted by the following vote: 7 — 0.
Trustee St. Aubin reported to the Board about his attendance at the MAPERS Fall
Conference. Trustee St. Aubin discussed the workshops he attended that included
presentations from the State of Michigan treasurer. Trustee Oleson reported that he
attended the Retirement Health Care workshop and future costs. Trustee Oleson
interacted with other trustees from other retirement systems throughout the state. Ms.
Williams reported information that she received from the Administrator's Breakfast that
dealt with defining service credits and other time periods. Trustee Kraus reported that
she attended the workshop on Request for Proposal. Trustee Kraus would like for the
subcommittee to compare the MAPERS RFP to what the subcommittee has drafted.
Trustee Holliday reported about the Defined Contribution versus Defined Benefit plans
workshop. Ms. Williams indicated that trustee can access information by visiting the
MAPERS website.
Ms. Williams reported that the registrations had been made for 2009 NCPERS
Conference for those members who were attending.
Trustee Robert Hecksel provided an Investment Subcommittee Report on the Hedge
Funds Discussion and Selection. Trustee Hecksel reported that that the Joint
Investment Subcommittee interviewed four managers on August 17, 2009. The
Investment Subcommittee selected two managers, Common Sense and Private
Advisors for further discussion. The subcommittee recommended Private Advisors to
the full Police and Fire Retirement System Board.
It was moved by Trustee Hecksel and supported by Trustee Oleson to accept the Police
and Fire Subcommittee recommendations hire Private Advisors as the Fund of Fund
Global Long Short Manager.
Adopted by the following vote: 7 — 0.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
September 22, 2009
Tuesday, 8:30 a.m.
Page Four
It was moved to Trustee Hecksel and supported by Trustee Kraus to allocate an initial
funding of 2.5% of the Police and Fire Retirement System Portfolio to fund the Hedge
Fund, following Asset Consulting Group's recommendation.
Adopted by the following vote: 7 - 0
Trustee Oleson requested that the Board take a look at the hedge fund investment
during the first quarter of 2010 to determine how the investment is performing. If the
investment is performing well, the Board may take action to allocate further funding
upward to 5.0% of the Police and Fire System portfolio.
Attorney Ken Lane reported that he received a preliminary contract from Private
Advisory. Attorney Lane has some indemnification concerns with the contract and how
it complies with Michigan statues. Clark Hill is currently reviewing the contract to work
out its concerns.
Trustee Holliday inquired to Attorney Lane about the probable timeline until funding.
Attorney Lane felt confident that the contract could be reviewed and issues worked out
with Private Advisors prior to the next meeting.
Trustee Hecksel inquired to Mr. John Johnson, Asset Consulting, regarding contracts
issues raised by Attorney Lanes. Mr. John Johnson spoke to the indemnification issues
and stated that the process is standard and the contract can be modified to address
concerns.
Karen Williams distributed a draft of the posting that would be used for the election of
the new trustee. The Board reviewed the procedures that would be used for
administering the election.
Trustee Brad St. Aubin and Trustee Robert Oleson volunteered to be election
inspectors for the upcoming Police Trustee election.
It was moved by Trustee Oleson and supported by Trustee Kraus to elect Trustee Brad
St. Aubin as chairperson of the Police and Fire Retirement System Board due to the
retirement of Trustee Holliday, effective at the of the September 22, 2009 meeting.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Hecksel and Trustee St. Aubin elect Trustee Robert Oleson
as vice chairperson of the Police and Fire Retirement System Board, effective at the
end of the September 22, 2009.
Adopted by the following vote: 7 — 0.
Karen Williams reported that the Board must official vote to have Trustee St. Aubin as
the new signator of the Police and Fire Retirement System.
Regular Meeting I'
City Council Chambers
10th Floor, City Hall
Lansing, MI
September 22, 2009
Tuesday, 8:30 a.m.
Page Five
It was moved by Trustee Wood and supported by Trustee Oleson for Trustee St. Aubin
as current chairperson to be the official signator for all retirement system investment
agreements and transaction handled by the Northern Trust Company, as custodian,
effective at the end of the September 22, 2009 by special resolution.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Wood and supported by Trustee Hecksel for Trustee St. Aubin
as current chairperson to be the official signator for all retirement system investments
agreements and transactions handled by its Investment managers, effective at the end
of the September 22, 2009.
Adopted by the following vote: 7 — 0.
Attorney Lane updated the Trustee Handbooks.
Trustee Korkoske reported that Doug Rubley, retiree contacted himself and Trustee
Antekeier regarding the adjusted withholding tables that were a part of the stimulus
package. Mr. Rubley had concerns that the adjusted withholding tables did not apply to
retirees and may have adverse tax consequences. He inquired if retirees had been
notified.
Trustee Korkoske spoke with the Retirement Office and discussed the withholding table.
The IRS required the adjusted withholding table for all employees and retirees.
However, retirees would not be eligible for the Making Work Pay credit. The Board
discussed sending a letter notifying the retirees regarding the Stimulus Package and
how it affected the withholding tables. Trustee Wood requested that a letter be sent to
the administration retirees that notifies retirees regarding the withholding tables and its
implications and that the draft be forwarded to Board members.
Karen Williams provided an update of the Gabriel, Roeder, and Smith Actuarial Fees.
In response to the letter sent by Trustee Antekier, Gabriel, Roeder and Smith will
maintain Eligible Domestic Relations Order fees at the 2008/2009 through June 2010.
However, Minutes Master fee adjustment should be directed to Mr. Ken Alberts.
It was moved by Trustee Wood and supported by Trustee Hecksel to approve the
Eligible Domestic Relations Orders fees.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Wood and supported by Trustee Oleson to approve the Minute
Master fees from range of $1,850 to $2,650.
Adopted by the following vote: 7 — 0.
i
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
September 22, 2009
Tuesday, 8:30 a.m.
Page Six
It was moved by Trustee Wood and supported by Trustee Hecksel to approve the
Actuarial Fees contract extension for the 2009/2010 fiscal year.
Adopted by the following vote: 7 — 0.
Trustee Kraus reported to the Board that she would scan the Request for Proposal
(RFP) received from the MAPERS conference and email it with the Board's RFP for
review.
The Special Projects Subcommittee recommended an annual report policy, presentation
policy and disability application review policy for the Board's consideration.
It was moved by Trustee St. Aubin and supported by Trustee Wood to adopt the new
Annual Report Policy and that it supersedes all other annual report policies. This policy
shall be attached to the minutes and also files in the policy book with the date of this
motion of adoption shown thereon.
Adopted by the following vote: 7- 0.
It was moved by Trustee St. Aubin and supported by Trustee Oleson to adopt the new
Presentation Policy and that it supersedes all other presentation policies. This policy
shall be attached to the minutes and also files in the policy book with the date of this
motion of adoption shown thereon.
Adopted by the following vote: 7- 0.
It was moved by Trustee Wood and supported by Trustee Benson to resolve into the
Disability Subcommittee to discuss the Disability Application Review Process.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Wood and supported by Trustee St. Aubin to resolve out of the
Disability Subcommittee.
Adopted by the following vote: 7 — 0.
Trustee Hecksel reported that the Disability Subcommittee met and recommends the
new Disability Application Review Process.
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the new
Disability Application Review Process Policy and that it supersedes all other disability
application review 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.
Adopted by the following vote: 7- 0.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
September 22, 2009
Tuesday, 8:30 a.m.
Page Seven
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
Investment Policy and that it supersedes all other Investment 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: 7- 0.
Trustee St. Aubin presented chairperson Bruce Holliday with a plaque of appreciation
on behalf of the City of Lansing Police and Fire Retirement System. Trustee Holliday
thanked the Board and expressed his gratitude for time he spent serving the Board.
Trustee Wood left the meeting.
Attorney Ken Lane updated the proposed legislative changes for Public Act 314.
Attorney Lane reported that there are five proposed bills that would address issues such
as the uniform securities acts and travel policy.
Karen Williams distributed and reviewed the Securities Lending Account Report. Ms.
Williams informed the Board that it was time for the quarterly cash withdrawals. Asset
Consulting Group recommended that $5,000,000 be transferred from BGI to Comerica
for cash flow needs. Also, Ms. Williams requested $6,000 to be transferred from
Northern Trust to Comerica for administrative expenses.
It was moved by Trustee St. Aubin and supported by Trustee Hecksel to approve the
transfer of $5,000,000 from BGI to Comerica for cash flow needs and the transfer of
$6,000 from Northern Trust to Comerica for administrative expenses.
Adopted by the following vote: 6 — 0.
Mr. John Jackson reviewed the Investment Report. Mr. Jackson updated the Board on
the Securities Lending liability. Northern Trust will create a payable for permanent
deficient due December 15, 2009. Mr. Jackson anticipated the amount will be
approximately $41,000. Mr. Jackson will further review this item at next Joint Meeting.
The meeting adjourned at 10:29 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
OFFICIAL.. ZOCEEDINGS OF THE 30ARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting October 22,"2009
Council Conference Room Thursday, 8.30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8.36 a.m.
Present: Antekeier, Dedic, Korkoske, Kraus, McCaffery, Murphy, Singleton (8:45), Wood —
8.
Absent- Trustees Bernero
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Official
minutes of the Employees' Retirement System Regular Meeting of September 17, 2009.
Adopted by the following vote: 7— 0.
There were no comments public comments for items on the Agenda.
Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers,
0 retired. Total active membership: 611 Total deferred: 50. Refunds made since the
last regular meeting amounted to $ 0. Retirement allowances paid for the month
of September, 2009 amounted to $1,484,297.95. Total retirement checks printed for
the ERS System: 794. 3 death(s) June Perrin, died, 9/7/2009, spouse of Elected
Official member, age 89-1 Ms. Catherine McKenzie, died 9/21/2009, (Finance —
Exempt retired 7/1 /1989), age 79, spouse to receive 50%; Ms. Laura Faulkner, died
9/23/2009, spouse of Public Service member, age 104. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic
relations. orders certified: 0.
It was moved by Trustee Dedic and supported by Trustee Wood to approve the following
requests for Regular Age & Service Retirement:
Brenda Lake (Public Service - UAW), 21 years, 11 months, age 58, effective
October 14, 2009,
John Watson, (Public Service - UAW), 32 years, 5 months, age 56, effective
October 17, 2009.
Adopted by the following vote: 7 — 0.
Employees Retiremc System
Regular Meeting of Gutober 22, 2009
Page 2
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements.
There were no Refunds of Accumulated Contributions.
Karen Williams distributed MAPERS certificates to the members that attended the Fall
Conference.
Attorney Ken Lane provided updates for the Trustee Booklets, Attorney Kenneth Lane also
provided the board with a memo regarding Meeting attendance. Attorney Lane indicated
that at two previous meeting, board members were included as present at the meeting via
telephone. At the time, Attorney Lane believed that members could be counted as present
in this matter. However, after the City Attorney's Office reviewed the minutes, it was
interpreted that trustees could not be counted present via phone. Attorney Lane described
the Meeting Attendance memo detailing that a trustee must be physically present to
participate in a Board meeting.
Trustee Singleton arrived at the meeting.
Attorney Kenneth Lane distributed and reviewed an update of the Private Advisors hedge
fund contract. The seven -page memo detailed the offering documents and addressed
concerns that Clark Hill had regarding the Fund Subscription. Attorney Lane worked with
John Jackson of Asset Consulting Group to amend the contract with Private Advisors.
Karen Williams provided an update of the Gabriel, Roeder and Smith Web Site
Information. Ms. Williams began researching items for the Retirement System web site at
the board's request. The Board met with Mr. Eric Tumbarella at previous meeting and
discussed having a retirement calculator uploaded to the site. The Board referred the IT
department to another municipality's website for an example. Spartan internet viewed the
website and reported that the calculator was created by Gabriel, Roeder and Smith. Ms.
Williams reported that Gabriel, Roeder and Smith web site had demos for retirement
calculators, death check information, Valuation portal technology.
Trustee Kraus suggested that members who were attending the International Conference
in November should visit the Vendor showcases. Trustee Kraus stated that at a previous
conference she reviewed some of the software available, and that would be helpful in the
search being done by the Retirement Office.
It was moved by Trustee Wood and supported by Trustee Murphy to have the Retirement
Office research retirement office software, in addition to information obtained at the
International Conference.
Adopted by the following vote: 7 — 0.
Trustee Wood requested that the Retirement Office obtain pricing and/or fees for the last
five years for the software.
Employees Retiremen rstem
Regular Meeting of Octjaer 22, 2009
Page 3
Mr. Jerry Ambrose via the Retirement Office inquired to the Board if there had been a
detailed comparison of the Employees Retirement System with its peer group, Trustee
Wood asked the purpose for the comparison report, and if there would be a cost. Trustee
Antekeier asked for specifics on what the report would detail.
An active employee requested that members of the retirement system be allowed to
purchase time through payroll deduction, similar to what is done at the State of Michigan.
Trustee Kraus discussed that there would need to be a time limit and an actuarial
evaluation of purchasing overtime. Trustee Singleton discussed who would administer
such a process. The Board discussed this issue and agreed that employees should utilize
the deferred compensation options to save money to purchase time.
Attorney Kenneth Lane advised the Ordinance would need to be amended to facilitate the
request. Attorney Lane suggested that the employee should be directed to Human
Resources regarding deferred compensation options.
Trustee Wood will distribute the Retiree Health Care Generic Drug Letter to members at
future meeting.
Trustee Kraus accepted all the changes to the Actuary Request for Proposal (RFP). She
requested that members review the proposal so that a final approved RFP can be drafted
for bid.
Attorney Ken Lane distributed three policies to the Board's Ordinance Review and Special
Projects subcommittee: Presentation Policy, Annual Report Policy, Disability Application
Review Process. Attorney Lane provided a brief description of the policies for the Board.
Trustee Dedic reported that the Ordinance Review subcommittee had met and has
reviewed draft ordinance amendments. Trustee Dedic stated that the subcommittee is also
reviewing the Collective Bargaining Agreements (CBA) to make certain that the current
CBAs are reflected in the Ordinance.
.Karen Williams updated the -Board regarding Mr. David Fish, a retired. ERS employee, who
requested retroactive duty disability. The Board- referred the letter to legal counsel for
review and response. Ms. Williams distributed the City Attorney's office response to Mr.
Fish.
Karen Williams distributed and reviewed the Investment Report and Securities Lending
Account Report for the month of September.
Ms. Williams reported to the Board regarding the Securities Lending Account. Northern
Trust has requested payment of the realized collateral pool losses for the ERS system.
Asset Consulting Group will provide detailed information and direction regarding the
request at the Joint Meeting.
Employees Retirem System
Regular Meeting of Uctober 22, 2009
Page 4
The meeting adjourned at 9:32 a.m.
Minutes approved on (I l c1 zoe g
R bert Antekeier, C airperson
Employees' Retirement System
"ar V
ose,Secretary
Em oy' Retirement System
i
i
COMMITTEE OF THE WHOLE OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
October 20, 2009
Tuesday, 8:30 a.m.
The Board met in the Committee of the Whole and was called to order at 8:36 a.m.
Present: Trustees Benson, Hecksel, Oleson, — 3.
Absent: Trustee Bernero, Kraus, St. Aubin, Wood.
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law
Office (representing the Law Department).
The Board did not have a quorum. The Committee was presided by Trustee Oleson.
There were no public comments.
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 1
refund(s), 0 transfers, 2 retired. Total: Active membership: 471. 4
death(s). Floyd P. Ziolkowski, Fire, died 9/21/2009, age 83, spouse to
receive 50%; Homer E. Phelps, Police, died 10/10/2009, age 82, spouse
to receive 50 %; John W. Dennany, Fire, died 9/21/2008, age 78, spouse
to receive 50%; Frances E. Nakfoor, Fire, died 5/31/2009, age 86,
spouse of retiree. Refunds made since the last regular meeting
amounted to $ 17,032.28. Retirement allowances paid for the month of
September, 2009 amounted to $1,843,859.95. Total retirement checks
printed for the P&F System: 639. Total retirement checks printed for both
systems: 1433. Domestic relations order received: 0. Domestic relations
orders pending: 1. Eligible domestic relations orders certified: 0.
Ms. Williams reported one request for duty disability, case #2009-F1020. The case was
referred to the Disability subcommittee.
There were no requests for Non Duty Disability Retirements.
There were no requests for Refund of Accumulated Contribution
Trustee Hecksel reported to the Board regarding the NCPERS Public Safety
Conference in October 11 -14 in Palm Springs, California. Trustee Hecksel stated that
the topics were very relevant to current issues of interest to the Police and Fire
Retirement System. Trustee Hecksel discussed information on trustee liability
insurance.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
October 20, 2009
Tuesday, 8:30 a.m.
Page Two
Trustee Hecksel requested that the Retirement Board discuss retaining a Securities
Litigation/Fraud Monitoring firm. Trustee Hecksel was very impressed with a Florida
attorney that discussed case law issues that affected pension systems and trustees.
Trustee Oleson reported that he networked with trustees from many municipalities that
include Los Angeles, Las Vegas, Philadelphia, Miami, Louisiana, Dallas. Trustee
Oleson also reported that all trustees that he spoke with had fraud monitoring firms in
place. Trustee Oleson reported that the City of Vallejo, California municipality was
facing bankruptcy and its effect on health care and the pension system.
Trustee Benson requested an example of when a trustee would be liable and subject to
litigation. Trustee Hecksel provided the City of Detroit as an example, where
questionable investments had been made. Employees of the Detroit pension plan have
sue members of the system. Trustee Hecksel described the costs of personal liability
insurance.
Karen Williams updated the Board that there was only one nominating petition to fill the
vacancy for Police Trustee to replace Bruce Holliday. The deadline for nominating
petition was November 2, 2009.
Attorney Ken Lane opined that the City Attorney's Office has interpreted the policy that if
there is only one nominating petition, an election is not needed.
Trustee Oleson stated that there needs to be a meeting scheduled to review the Actuary
RFP.
Karen Williams reported to the Board regarding a pension calculator for the retirement
website and pension estimation software. Ms. Williams reviewed the pension
administration tools offered by Gabriel, Roeder and Smith. Karen Williams discussed
that the current system is all done manually. Ms. Williams discussed standardizing and
streamlining the process with appropriate software.
Trustee Benson suggested that the Retirement Office be authorized to research plan
administration software and provide a written report with recommendations.
Mr. Jerry Ambrose via the Retirement Office inquired to the Board if there had been a
detailed comparison of the Police and Fire Retirement System with its peer group.
Trustee Wood asked the purpose for the comparison report, and if there would be a
cost.
Attorney Kenneth Lane provided the board with a memo regarding Meeting attendance.
Attorney Lane indicated that at two previous Employees Retirement System meetings,
board members were included as present at the meeting via telephone. At the time,
Attorney Lane believed that members could be counted as present in this matter.
However, after the City Attorney's Office reviewed the minutes, it was interpreted that
trustees could not be counted present via phone.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
October 20, 2009
Tuesday, 8:30 a.m.
Page Three
Attorney Lane described the Meeting Attendance memo detailing that a trustee must be
physically present to participate in a Board meeting.
Attorney Kenneth Lane distributed and reviewed an update of the Private Advisors
hedge fund contract. The six -page memo detailed the offering documents and
addressed concerns that Clark Hill had regarding the Fund Subscription. Attorney Lane
worked with John Jackson of Asset Consulting Group to amend the contract with
Private Advisors.
Attorney Ken Lane reported that the information for the Qualified Plan Documents is
ready for the Special Projects subcommittee. Attorney Lane will email the documents to
committee members for review. The Board discussed dates for the Special Projects
subcommittee.
Karen Williams provided a background of the Securities Lending Money committee.
The Committee planned to review additional uses for Securities Lending Money such as
including the widow's benefit, services for retirees, pension benefits.
Attorney Ken Lane reported to the Board that the draft ordinance has been distributed to
the committee for review
Karen Williams distributed and reviewed the Investment and monthly administrative fee
and Securities Lending Report for the month of September.
Trustee Oleson requested information regarding when the next Experience Study for
the Police and Fire Retirement System will be done.
The meeting adjourned at 9:34 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, 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
November 19, 2009
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:36 a.m.
Present: Antekeier, Dedic, Korkoske, Kraus, Singleton (9:00 a.m.), Wood — 6.
Absent: Trustees Bernero, McCaffery, Murphy
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
It was moved by Trustee Wood and supported by Trustee Korkoske to approve the Official
minutes of the Employees' Retirement System Regular Meeting of October 22, 2009.
Adopted by the following vote: 5— 0.
There were no comments public comments for items on the Agenda.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers,
2 retired. Total active membership: 608 Total deferred: 51. Refunds made since the
last regular meeting amounted to $ 0. Retirement allowances paid for the month
of October, 2009 amounted to $1,486,546.92. Total retirement checks printed for
the ERS System: 795. Eligible domestic relations orders received: 1. Domestic
relations orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Wood Dedic and supported by Trustee Wood to approve the
following requests for Regular Age & Service Retirement:
Merl McVay (Public Service - UAW), 27 years, age 50, effective November 16,
2009.
Kecia R. Coats, (Human Resources — Exempt), 23 years, 5 months, age 43,
effective November 17, 2009. (65 points)
Scott A. Jezek (Public Service — T580), 21 years, 11 months, age 43, 4 months,
effective November 20, 2009 (65 points)
Adopted by the following vote: 5 — 0.
Employees Retirement System
Regular Meeting of November 19, 2009
Page 2
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements.
The Retirement Office reported that Ms. Catherine Dougherty, Teamster 580 CTP, LPD
Detention requested a Refund of her Accumulated Contributions of $1,255.25. Ms.
Dougherty was not vested.
It was moved by Trustee Korkoske and supported by Trustee Dedic to excuse Mr.
McCaffery, and Mr. Murphy.
Adopted by the following vote: 5 — 0.
Trustee Dedic provided a report regarding his attendance to the International Foundation
(IFEBP) Annual Conference Report. Trustee Dedic reported to the Board regarding the
workshops that he participated that included Defined Benefits, and Hedge Funds.
Trustee Antekeier reported that he also attended the IFEBP Conference and provided an
overview of the information that he received regarding Hedge Funds. Trustee Antekeier
and Trustee Dedic did visit software vendors. Trustee Dedic will also provide the IFEBP
Conference Survey for those interested members.
Attorney Ken Lane provided an update of the Private Advisors Hedge Equity Fund Offering
Documents. Clark Hill has reviewed the documents and the issues addressed in the side
letter of agreement to Private Advisors. Attorney Kenneth Lane reviewed the seven -page
memo detailed the offering documents.
Trustee Singleton arrived at the meeting.
Karen Williams reported that the Medical Director returned his signed agreement. There
were no changes made to the agreement. The Board agreed to review the agreement and
consider it at the next meeting.
Karen Williams reported that the Board received a request for MAPERS requesting support
for HB 5323 by its members. MAPERS provided a sample resolution and a sample letter.
Attorney Lane reviewed the legislation that amends Public Act 314 and reported that the
House Bill is still pending. The Board agreed to review the agreement and consider it at
the next meeting.
Attorney Ken Lane distributed and reviewed the updated Eligible Domestic Relations Order
(EDRO) form. Attorney Lane detailed the difference between the old form and the
amended form.
It was moved by Trustee Wood and supported by Trustee Dedic to adopt the updated
Eligible Domestic Relation Order (EDRO) form as outlined by legal counsel.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of November 19, 2009
Page 3
Attorney Ken Lane provided a memo detailing general principles of the Open Meetings
Acts and the Freedom of Information Acts as requested by Trustee Wood.
It was moved by Trustee Wood and supported by Trustee Dedic that the General principles
of the Open Meetings Acts and the Freedom of Information Acts memo be adopted as
board policy and added to the Employees Retirement System Trustee Handbook.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Wood and supported by Trustee Dedic that when a new trustee
joins the Board, that member will have Trustee Orientation and made aware of the memo.
Additionally, there will be a notation made with the Retirement Office that the member has
reviewed the policy.
Adopted by the following vote: 6 — 0.
Trustee Wood requested that the Board consider having a Securities Litigation/Fraud
Monitoring firm. Trustee Wood recommended that the topic be discussed at the Joint
Meeting to see if the Police and Fire Board had a willingness to also have a Securities
Litigation firm.
Trustee Wood updated the Board that she forwarded the letter to Mr. Howard McCaffery
and to Mr. Doug Rubley for review and signature.
Trustee Kraus updated the Board that she would forward the updated Actuary Request for
Proposal to the Special Projects subcommittee.
Attorney Ken Lane has forwarded the Ordinance and policies for review to the
subcommittee members by the Retirement Office.
The Board discussed Trustee Dedic's recommendation to remove the residency
requirement from the retiree representative. The recommendation would allow any retiree
regardless of geographical location to be a member of the board. The Board also
discussed the requirements for the citizen representative.
It was moved by Trustee Wood and supported by Trustee Korkoske to remove the
residency requirement from the retiree representative to the Employees Retirement System
Board.
Adopted by the following vote: 6 — 0.
Ms. Karen Williams reviewed the information that she is researching regarding software for
the Retirement website. Gabriel, Roeder and Smith is preparing an estimate letter for a
retirement calculator and valuation software.
Karen Williams distributed and reviewed the Investment Report and Securities Lending
Account Report for the month of October.
Employees Retirement System
Regular Meeting of November 19, 2009
Page 4
Ms. Williams reported to the Board regarding the MD Sass Fee Reduction letter had
arrived for signature. The letter was reviewed by legal counsel. Ms. Williams also reported
regarding the Securities Lending Account, that Northern Trust has requested payment of
the realized collateral pool losses for the ERS system. Asset Consulting Group will provide
detailed information and direction regarding the request at the Joint Meeting.
The meeting adjourned at 10:01 a.m.
Minutes approved on .4d - � 7- --� Oo
_ee�ry P mb-rose, Secretary
EOplo ees' Retirement System
Robert Antekeier, Chairperson
Employees' Retirement System
CITY OF LANSING
POLICE & FIRE and ERS RETIREMENT SYSTEM
OFFICIAL MINUTES
Joint Meeting
Council Conference Room
10th Floor City Hall
Lansing, MI
The meeting was called to order at 9:45 a.m.
November 24, 2009
Tuesday, 9:45 a.m.
A quorum of the Police and Fire and the Employees Retirement System Board was present.
Trustees present: (Police & Fire), Hecksel, Kraus, Oleson, St. Aubin, Wood — 5.
(ERS), Antekeier, Dedic, Kraus, Singleton, (11:45), Wood — 5.
Other presents: John Jackson, Asset Consulting Group, Inc. (ACG); Karen Williams, Finance
Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the City Attorney's
Office); Mr. Hugh Lamle, President, MD Sass.
Mr. Hugh Lamle provided a Performance Review of the M.D. Sass Investments. Mr. Lamle
reviewed Portfolio Characteristic and Market Analysis for the Police and Fire Retirement
System Fund and the Employees Retirement System Fund. Mr. Lamle also provided a
portfolio appraisal for both boards.
The Joint Boards discussed hiring a securities litigation ,and fraud monitoring firm. The
discussion was referred to the Police and Fire Investment Subcommittee and the Employees
Retirement System Outside Legal Counsel subcommittee. The Joint Committees scheduled a
meeting for Tuesday, January 5, 2010, 10:00 a.m. in the 10th Floor, Conference Room.
Mr. John Jackson and Attorney Ken Lane provided a brief update for both boards regarding the
progress of the Private Advisors investment.
Mr. John Jackson led a discussion and provided a memo regarding the Northern Trust
Securities Lending Payables. Mr. Jackson explained that Northern Trust requested payment of
a portion of the outstanding payable due to collateral deficiency. The Memo recommended
that the Police and Fire Board and the Employees Retirement System Board approve payment
for realized losses and related settlement for impaired securities.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve payment to
Northern Trust for Securities Lending payables of $41,963 as recommended by Asset
Consulting Group.
Adopted by the following vote: 5 — 0.
It was moved by the Trustee Wood and supported by Trustee Dedic to approve payment to
Northern Trust for Securities Lending payables of $35,014 as recommended by Asset
Consulting Group.
Adopted by the following vote: 5 — 0.
Mr. John Jackson provided an overview of the Quarterly Performance of the Police and Fire
Retirement System and the Employees Retirement System for the period ending September
30, 2009. Mr. Jackson reviewed the Market Environment, the systems' individual investment
and an analysis of the equity, fixed and real estate markets.
The meeting adjourned at 11:55 a.m.
Minutes approved on 1A/ 7 7m
Robert Antekeier, Chairperson
Employees' Retirement System
J eery
E,m p
mbrp`se, Secretary
,ees' Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting November 24, 2009
City Council Chambers Tuesday, 8:36 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:36 a.m.
Present: Trustees Hecksel, Kraus, Oleson, St. Aubin, Wood — 5.
Absent: Trustee Benson, Bernero.
Others: Karen E. Williams, Finance Department; John Jackson, Asset Consulting
Group; Attorney Ken Lane, Clark Hill Law Office (representing the .Law
Department).
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the
Official Minutes of the Police and Fire Meeting of September 22, 2009.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
Police and Fire Committee of the Whole Minutes for the meeting of October 20, 2009.
Adopted by the following vote: 5 — 0.
There were no public comments.
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 1
refund(s), 0 transfers, 1 retired. Total: Active membership: 470. 4
death(s). Roberta Moore, Fire, died 10/13/2009, age 92, spouse to
retiree; Richard H. Patterson, Fire, died 10/31/2009, age 85, no
beneficiary; Pauline Brethauer, Fire, died 10/29/2009, age 91, spouse of
retiree; Harold Finney, Fire, died 8/1/2008, age 73, spouse to receive
50%. Refunds made since the last regular meeting amounted to $0.00.
Retirement allowances paid for the month of October, 2009 amounted to
$1,826,729.06. Total retirement checks printed for the P&F System: 637.
Total retirement checks printed for both systems: 1432. Domestic
relations order received: 0. Domestic relations orders pending: 0.
Eligible domestic relations orders certified: 0.
Trustee Hecksel inquired about the date of Mr. Harold Finney's death in the secretary's
report. Karen Williams reported that there was an issue with Mr. Finney's beneficiary
and it would be discussed later on the agenda.
i
I
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
i
f
November 24, 2009
Tuesday, 8:30 a.m.
Page Two
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
following Application for Regular Age & Service Retirement:
Mr. Edward C. Forrest, Jr., Police Department, 25 years, 1 month of service,
Age 48, effective October 16, 2009.
Adopted by the following vote: 5 — 0.
Ms. Williams reported one request for duty disability, case #2009-F1124. The case was
referred to the Disability subcommittee.
It was moved by Trustee Hecksel and supported by Trustee Kraus to recess the Police
and Fire Retirement System meeting and allow the Disability Subcommittee to meet to
discuss Case #2009-F1124 and Case #2009-F1020.
Adopted by the following vote: 5 — 0.
The Board reconvened.
It was moved by Trustee Hecksel and supported by Trustee Wood to add Case #2009-
F1020 to the agenda.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Hecksel and supported by Trustee Wood to send disability
application 2009-F1020 to the Medical Director upon receiving the following
documentation from Fire Administration and/or City Administration:
• Employee's Attendance Record from Date of Hire.
• Employees Return to Work Status dated in 2009.
• Copies of the Runs cited as the cause for injury
• All employee records from City Human Relations regarding the stated injury.
• Any documentation deemed appropriate by the Pension Board of Fire
Administration to facilitate the Medical Director in making an informed
decision on this case.
The Board recommends that Dr. Roth refer to a doctor that specializes in Post
Traumatic Stress Disorder (PTSD) for this and all future PTSD cases, preferably as
used by the Veteran's Administration in related cases.
Adopted by the following vote: 5 — 0.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
November 24, 2009 `
Tuesday, 8:30 a.m.
Page Three
It was moved by Trustee Hecksel and supported by Trustee Wood to send disability
application 2009-F1124 to the Medical Director upon receiving the following
documentation from Fire Administration and/or City Administration:
• Employee's Attendance Record from Date of Hire
• Any documentation deemed appropriate by the Pension Board or Fire
Administration to facilitate the Medical Director in making an informed
decision on this case.
Adopted by the following vote: 5 — 0
It was moved by Trustee Kraus and supported by Trustee Wood to add duty disability
re-examination follow-up report.
Adopted by the following vote: 5 — 0.
Ms. Williams informed the Board that there were four duty disability retirees sent to Dr.
Roth for re-examination and evaluation. Dr. Roth examined the duty disability retirees
sent to him and reported that all four duty disability retirees were still considered
disabled.
Trustee St. Aubin reported that Mr. Joshua Palmer will be held on the agenda for one
additional month. Trustee Hecksel will reach out to Mr. Palmer to see if there is any
progress in his case. Trustee St. Aubin requested that Mr. Palmer's case be considered
at the next meeting, so that it may be removed from the agenda. Mr. Palmer can
reapply for duty disability consideration.
There were no requests for Non Duty Disability Retirement.
There were no requests for Refund of Accumulated Contributions.
It was moved by Trustee Kraus and supported by Trustee Hecksel to excuse Trustee
Edward Benson from the meeting.
Adopted by the following vote: 5 — 0.
Karen Williams reported that Mr. Benson attended the International Conference (IFEBP)
and he prepared a report for submission to the Board.
There were no public comments for items not on the Agenda.
Mr. Jerry Ambrose forwarded a memo to the Police and Fire Retirement Board
regarding the Trustee Election. The memo requested that the Board certify Mr. Thomas
Fabus as the winner of the election, because he turned in a valid nomination petition
and was unopposed. Mr. Fabus assumes the unexpired term for the Police Trustee
position vacated by Bruce Holliday, ending December 31, 2010.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
November 24, 2009
Tuesday, 8:30 a.m.
Page Four
It was moved by Trustee Hecksel and supported by Trustee Kraus to accept Mr.
Ambrose memo and declare Mr. Thomas Fabus as Police Trustee.
Adopted by the following vote: 5 — 0.
Trustee Oleson requested a time for the Joint Committee on Special Projects for the
Actua,x Bid Process. The Board agreed to Tuesday, January 5, 2010 at 9:00 a.m. in
the 10t Floor Conference Room.
Mr. Williams reported that the payroll system ran a Medicare death check on the
system. Social Security Administration reported that Mr. Harold Finney died August
2008. The Retirement Office sent a letter to the Finney family requesting verification of
the social security administration information. When the Retirement Office did not
receive contact from the family, the retirement check was suspended for a month. The
Finney family then notified the Retirement Office of Mr. Finney's death and supplied a
death certificate. Ms. Williams explained to the Finney family that Mrs. Ursula Finney,
the beneficiary, was only to receive 50% of the retiree benefit. Mrs. Finney informed the
Retirement Board that she was in her 80s and did not write or read English well. She
stated that she was unaware that she had to report Mr. Finney's death. Ms. Williams
has adjusted Mrs. Finney check going forward, but has requested the Board's direction
on recoupment of the overage that she has been paid since August 2008.
The Board agreed that legal counsel would draft a letter to Mrs. Ursula Finney with a
copy to her daughter. The Board would detail the overage and give Mrs. Finney the
option to write a check to the Retirement System or cease payments.
It was moved by Trustee Kraus and supported by Trustee Hecksel that legal counsel
send a letter to Mrs. Finney detailing the situation and providing an option to either pay
the overage or retirement benefits will be suspended. Trustee Wood provided a friendly
amendment that the life insurance that has not been collected can be used to reduce
the outstanding amount.
Adopted by the following vote: 5 — 0.
Karen Williams reported that the Medical Director returned his signed agreement.
There were no changes made to the agreement.
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the
Medical Director Agreement.
Adopted by the following vote: 5 — 0.
I
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
November 24, 2009
Tuesday, 8:30 a.m.
Page Five
Karen Williams reported that the Board received a request for MAPERS requesting
support for HB 5323 by its members. MAPERS provided a sample resolution and a
sample letter. Attorney Lane reviewed the legislation that amends Public Act 314 and
reported that the House Bill is still pending.
It was moved by Trustee Wood and supported by Trustee Hecksel that the Police and
Fire Retirement Board prepare the Model Resolution supplied by MAPERS in support of
House Bill 5323 and be forwarded to our legislators.
Adopted by the following vote: 5 — 0.
Attorney Ken Lane and Mr. John Jackson provided an update on the Private Advisors
Hedge Fund of Fund offering documents. Attorney Lane reviewed his executive
summary memo and detailed the side letter agreement and the modifications to the
offering documents.
Attorney Ken Lane reviewed his memo regarding the General Principles of the Open
Meeting Act and the Freedom of Information Act. Trustee Wood requested that the
Memo become a part of the Trustee Book and each new member should have training
regarding these issues. The Board agreed to put the memo in the Trustee Book
Trustee St. Aubin tabled the pending items until next meeting.
Karen Williams distributed and reviewed the Securities Lending Report for the month of
September. Karen Williams requested $6,000 transfer from Northern Trust to Comerica
for Administrative Expenses.
It was moved by Trustee Hecksel and supported by Trustee Oleson to transfer $6,000
from Northern Trust to Comerica for the Board's administrative expenses.
Adopted by the following vote: 5 — 0.
The meeting recessed at 10:34 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, 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
December 17, 2009
Thursday, 9:30 a.m.
The Board met in regular session and was called to order at 9:36 a.m.
Present: Antekeier, Dedic, McCaffery, Singleton, Wood — 5.
Absent: Trustees Bernero, Korkoske, Kraus, Murphy
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the Law Department).
It was moved by Trustee Dedic and supported by Trustee Wood to approve the Official
minutes of the Employees' Retirement System Regular Meeting of November 19, 2009.
Adopted by the following vote: 5— 0.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the Official
Joint Minutes of the Police and Fire Retirement System and the Employees Retirement
System Board Meeting of November 24, 2009.
Adopted by the following vote: 5 — 0.
There were no comments public comments for items on the Agenda.
Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers,
3 retired. Total active membership: 604 Total deferred: 52. Refunds made since the
last regular meeting amounted to $ 1,255.25. Retirement allowances paid for the
month of November, 2009 amounted to $1,496,503.45, Total retirement checks
printed for the ERS System: 797. Eligible domestic relations orders received: 0.
Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0.
It was moved by Trustee Wood Dedic and supported by Trustee Wood to approve the
following requests for Regular Age & Service Retirement:.
Anthony D. Sokol (Public Service — T580 9 years, 3 months, age 58, effective
December 1, 2009. (From Deferred)
Adopted by the following vote: 5 — 0.
Employees Retirement System
Regular Meeting of December 17, 2009
Page 2
There were no requests for Duty Disability Retirements.
There were no requests for Non -Duty Disability Retirements.
The Retirement Office reported that Mr. Christopher Fulger, FOP 911 requested a Refund
of his Accumulated Contributions of $$1,342.79. Mr. Fulger was not vested.
It was moved by Trustee Dedic and supported by Trustee McCaffery to excuse Mr.
Korkoske, and Mr. Murphy.
Adopted by the following vote: 5 — 0.
Karen Williams requested approval for membership renewal fees for MAPERS of $50.00,
and the International Conference (IFEBP) Membership of $357.50.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the
membership renewal fees for MAPERS, International Conference (IFEBP) and pay the
fees from Security Lending Account monies.
Adopted by the following vote: 5 — 0.
Karen E. Williams reported to the Board that the Finance Department questioned some of
the expenses report fees from the International Conference, baggage fees, and tipping.
Ms. Williams informed the Board that she contacted the City Attorney's office for
clarification of the policy. Attorney Jack Roberts reviewed the policy and opined that the
expenses in question were not specifically addressed in the policy. He further opined that
the Board may review and amend the policy to address these types of expenses. Ms.
Williams asked the Finance Department to pay the expenses that were not in question.
However, the Board would need to make an exception and approve the questioned
amounts.
It was moved by Trustee Wood and supported by Trustee Singleton to make an exception
and approve Trustee Antekeier and Trustee Dedic's expenses for International Foundation
that was questioned by the Finance Department.
Adopted by the following vote: 5 — 0.
Attorney Ken Lane updated the Board that the City Attorney's Office is reviewing the
Private Advisors Hedge Equity Fund Offering Documents. Trustee Wood noted that once
the investment was made, monies could not be redeemed in the first year.
It was moved by Trustee Wood and supported by Trustee Dedic to support the Medical
Director Agreement.
Adopted by the following vote: 5 — 0
Employees Retirement System
Regular Meeting of December 17, 2009
Page 3
It was moved by Trustee Wood and supported by Trustee Dedic to send a letter of support
for HB 5323 as requested by MAPERS to the State legislators.
Adopted by the following vote: 5 — 0.
Attorney Ken Lane distributed Eligible Domestic Relations Order (EDRO) form updates for
the Trustee Books and reviewed Public Act 314 Memo regarding HB5618 and HB5619.
Attorney Lane detailed the HB 5618 retirement systems would make good faith effort to
hire investment manager of emerging funds. A report would need to go to the legislature.
HB 5619 would require fiduciaries to invest in minority -owned business. HB 5323 has not
moved out of committee.
Karen Williams distributed the 2010 Meeting Schedule for the Board's consideration and
approval.
It was moved by Trustee Wood and supported by Trustee McCaffery to approve the 2010
Meeting Schedule.
Adopted by the following vote: 5 -0.
Trustee Dedic informed the Board that he and Trustee Singleton had a meeting with Keri
Hepburn of Invesco regarding another product. Trustee Dedic reviewed the information
with Board members and suggested that Ms. Hepburn present this investment to the
members. Asset Consulting Group reviewed the investment and sent an email that the
investment was not recommended at this time. Trustee Wood suggested sending an
invitation to the Police and Fire Retirement Board.
Trustee Wood updated the Board that she will work with the Retirement Office to send out
the letter.
Karen Williams reported that the Joint Committee for Special Reports was scheduled for
Tuesday, January 5, 2010 at 9 a.m., following by the Securities Litigation/Fraud Monitoring
Firm at 10:00 a.m.
Trustee Wood suggested that New Trustee Training Policy be drafted, that when a new
trustee joined the Board, the new members would review the Trustee Handbook with legal
counsel. Once the training has taken place, it would be noted with the Retirement Office.
Attorney Ken Lane has forwarded the Ordinance and policies for review to the
subcommittee members by the Retirement Office. Attorney Lane sent out an email
regarding the proposed residency requirement amendment.
Karen Williams reviewed the Gabriel, Roeder and Smith letter that estimated the costs and
fees for the retirement calculator and valuation software. Ms. Williams reported that the
Police and Fire System also would like to include death check software. The fee range
would be between $32,000 and $38,000 to implement, plus an annual licensing fee.
Employees Retirement System
Regular Meeting of December 17, 2009
Page 4
Karen Williams distributed and reviewed the Investment Report and Securities Lending
Account Report for the month of November.
The meeting adjourned at 10:27 a.m.
Minutes approved on
Robert Antekeier, Chairperson
Employees' Retirement System
1^
Je(ry Aose, Secretary
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
December 15, 2009
Tuesday, 8:30 a.m.
The Board met in regular session and was called to order at 8:35 a.m.
Present: Trustees Benson, Fabus, Hecksel, Oleson, St. Aubin, Wood — 6.
Absent: Trustee Benson, Bernero.
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law
Office (representing the Law Department).
It was moved by Trustee Oleson and supported by Trustee Wood to approve the Official
Minutes of the Police and Fire Meeting of November 24, 2009.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Joint
Police and Fire and the Employees Retirement System meeting of November 24, 2009.
Adopted by the following vote: 6 — 0.
There were no public comments.
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0
transfers, 0 retired. Total: Active membership: 470. 1 death(s). Terry Hinman,
Fire, died 11/14/2009, age 66, spouse to receive 50%. Refunds made since the
last regular meeting amounted to $ 0.00. Retirement allowances paid for the
month of November, 2009 amounted to $1,822,575.84. Total retirement checks
printed for the P&F System: 635. Total retirement checks printed for both
systems: 1432. Domestic relations order received: 0. Domestic relations orders
pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Fabus and supported by Trustee Oleson to approve the
following application for Regular Age & Service Retirement:
Mr. Mark M. Murray, Police Department, 25 years of service, age 49,
effective December 15, 2009.
Adopted by the following vote: 6 — 0.
The Board recessed to allow the disability subcommittee to meet at 8:45 a.m.
Regular Meeting December 15, 2009
City Council Chambers Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
The Board resumed the meeting at 8:56 a.m.
It was moved by Trustee Hecksel and supported by Oleson to deny the request for Duty
Disability of Mr. Joshua Palmer based on the findings and recommendation of Dr. Roth,
the Medical Director.
Adopted by the following vote: 6 -0
It was moved by Trustee Hecksel and supported by Trustee Oleson to inform applicant
#2009-F1020 via certified mail of the requirements of the Board consistent with past
practice as reported by the City Attorney for this case to be referred to Medical Director.
Adopted by the following vote: 6 — 0
It was moved by Trustee Hecksel and supported by Trustee Oleson to inform applicant
#2009-F11240 via certified mail of the requirements of the Board consistent with past
practice as reported by the City Attorney for this case to be referred to Medical Director.
Adopted by the following vote: 6 — 0
All medical information and doctors reports were returned to the Retirement Analyst.
Trustee St. Aubin reported to the Board that applicant #2009-P1215 has submitted a
request for Non -Duty Disability Retirement. Trustee St. Aubin informed the Board that
the applicant did not qualify for non -duty disability because he had less then the
required ten years of service.
Mr. Edward Benson submitted a written report and provided an oral report of his
attendance at the International Conference (IFEBP) Report. Mr. Benson found that the
workshops, presentations and the conference materials were very informative. Mr.
Benson enjoyed the conference sessions especially designed for new trustees. Mr.
Benson appreciated the opportunity to attend and would like to attend conferences in
the future.
Karen E. Williams reported to the Board that the Finance Department questioned some
of the expenses on Mr. Edward Benson's report, for car rental, baggage fees, and
tipping. Ms. Williams informed the Board that she contacted the City Attorney's office
for clarification of the policy. Attorney Jack Roberts reviewed the policy and opined that
the expenses in question were not specifically addressed in the policy. He further
opined that the Board may review and amend the policy to address these types of
expenses. Ms. Williams asked the Finance Department to pay the expenses that were
not in question. However, the Board would need to make an exception and approve the
questioned amounts.
Regular Meeting
City Council Chambers
10th Floor, City Hall
Lansing, MI
December 15, 2009
Tuesday, 8:30 a.m.
Page Three
It was moved by Trustee Wood and supported by Trustee Oleson to make an exception
and approve the expenses for Mr. Edward Benson that was questioned by the Finance
Department.
Adopted by the following vote: 6 — 0.
Karen Williams requested approval for membership renewal fees for MAPERS of
$50.00, International Conference (IFEBP) Membership of $357.50 and NCPERS
Membership Fees of $150.00.
It was moved by Trustee Wood and supported by Trustee Oleson to approve the
membership renewal fees for MAPERS, International Conference (IFEBP) and
NCPERS.
Adopted by the following vote: 6 — 0.
Karen Williams reported that the Joint Committee on Special Projects regarding the
Actuary Bid Process would meet January 5, 2010.
Attorney Ken Lane provided an update of Mrs. Ursula Finney's case. Attorney Lane
mailed a letter to Mrs. Finney and sent a copy to her daughter requesting repayment of
the pension overpayment. Attorney Lane spoke with Mrs. Finney and she informed him
that she was preparing to sell her property and would take a reduced pension until the
overage is paid. Attorney Lane recommended placing a lien on Mrs. Finney's property
until the overage is paid.
It was moved by Trustee Oleson and supported by Trustee Hecksel to follow City
Attorney's recommendation to place a lien on Mrs. Finney's property and reduce Mrs.
Finney's pension in half.
Adopted by the following vote: 6 — 0.
Attorney Lane provided a Private Advisors update and distributed an executive
summary for the Board's review. Attorney Lane has referred the Private Advisors
Offering documents for final review to the City Attorney's Office.
Karen Williams distributed the 2010 Schedule of Meetings. The Board agreed to move
the November meeting to November 9, 2010 and the December meeting to December
14, 2010.
It was moved by Trustee Wood and supported by Trustee Oleson to approve the 2010
Schedule of Meeting.
Adopted by the following vote: 6 — 0.
;
I
Regular Meeting
City Coukcil Chambers
10th Floor, City Hall
Lansing, MI
December 15, 2009
Tuesday, 8:30 a.m.
Page Four
Karen Williams reported to the Board that she will contact Gabriel Roeder Smith
regarding coming in to discuss their Retirement Office software at a future joint meeting.
Trustee Wood suggested that when new members come on the retirement board, that
there is a training with the Trustee Handbook. Trustee Wood further suggested that
legal counsel would review the Handbook with new trustee and there would be sign -off
by the Trustee kept in the Retirement Office.
It was moved by Trustee Wood and supported by Trustee Oleson to have a policy
regarding new Trustee Orientation.
Adopted by the following vote: 6 — 0.
Trustee St. Aubin requested that legal counsel review the IRS Ruling that would
increase the age that Police and Fire officers can retire.
Karen Williams distributed and reviewed the Investment Report and the Securities
Lending Report for the month of October.
It was moved by Trustee Hecksel and approve by Trustee Oleson to adjourn the
meeting.
Adopted by the following vote: 6 - 0.
The meeting adjourned at 9:54 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System