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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