Loading...
HomeMy WebLinkAbout2010 ERS Minutesi OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI January 21, 2010 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:37 a.m. Present: Antekeier, Dedic, Kraus (8:49), McCaffery, Murphy, Singleton (8:41), Wood — 7. Absent: Trustees Bernero, Korkoske Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department), John Jackson, Asset Consulting Group; Keri Hepburn, Marvin Flewellen, James Lockhart, Invesco Investments. It was moved by Trustee Dedic and supported by Trustee Wood to approve the Official minutes of the Employees' Retirement System Regular Meeting of December 17, 2009 with amendments. Adopted by the following vote: 5— 0. Trustee Singleton arrived. 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, 1 retired. Total active membership: 598 Total deferred: 53. Refunds made since the last regular meeting amounted to $ 1,342.79. Retirement allowances paid for the month of December, 2009 amounted to $1,497,181.59. Total retirement checks printed for the ERS System: 797. 2 death(s), Helen Garlock, (NonBargaining), retired 4/1/1978, age 91, died 11/11/2009; Rueben Mylander, (Public Service — UAW), retired 4/17/2004, age 92, died 1/12/2010. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 1. It was moved by Trustee Dedic and supported by Trustee Wood to approve the following requests for Regular Age & Service Retirement: Donald A. Ballard (Parks — T214), 31 years, 2 months, age 58, effective January 15, 2010. Adopted by the following vote: 6 — 0. Employees Retirement System Regular Meeting of January 21, 2010 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. Sheila Fandrick, District Court Teamster, requested a Refund of her Accumulated Contributions of $4,310.52. Ms. Fandrickwas not vested. It was moved by Trustee Wood and supported by Trustee Murphy to excuse Mr. Korkoske, from the Employees Retirement System Meeting. Adopted by the following vote: 6 — 0. Trustee Kraus arrived to the meeting. The Board discussed amending the travel policy. The amended travel policy would not limit the amount of out-of-state conferences for education and training. The amended travel policy would limit expenses for out-of-state trips to $3,000 annually. Attorney Lane advised the Board that new legislation would require records must be kept for these conferences, noting the benefit, for five years. It was moved by Trustee Dedic and supported by Trustee Murphy to amend the travel policy to not limit the number of out-of-state trips, but limit the total expenses for trips to $3,000 annually. Adopted by the following vote: 7 — 0. Trustee Kraus recommended that the travel policy also be amended to include baggage fees. It was moved by Trustee Kraus and supported by Trustee Wood to amend the travel policy to include baggage fees with the appropriate receipts. Adopted by the following vote: 7 — 0. Karen Williams announced that International Conference sent out an e-mail requesting members who wished to attend the 2010 conference register early due to increased demand. It was moved by Trustee Wood and supported by Trustee Kraus to nominate and elect Robert Antekeier as chairperson and Scott Dedic as vice chair. Adopted by the following vote: 7 — 0. Employees Retirement System Regular Meeting of January 21, 2010 Page 3 The Board agreed to the following subcommittee assignments for 2010: Disability Committee - Antekeier, Kraus, Singleton, Wood Investment Committee - Antekeier, Korkoske, Kraus Education Committee - Antekeier, Korkoske, Murphy Ordinance Changes Committee - Dedic, Kraus, Singleton, Wood Expanded for Special Projects Joint Ad Hoc Committee On Health Care - Dedic, Korkoske, Singleton, Wood Outside Legal Services Committee - Dedic, Kraus, Wood Attorney Ken Lane reviewed the memo from the City Attorney's Office regarding the Private Advisors Hedged Equity Fund, Ltd. The memo expressed concerns with the investment outlined by Clark Hill. Trustee Wood expressed concern regarding the Hedge Fund Equity's offshore account and the ability to redeem monies invested by the Board. Trustee McCaffery stated that he opposed the Hedge Fund Investment and that he voted against it. John Jackson addressed the concerns of trustees regarding the investment strategy. The Board agreed to keep Hedge Fund discussion on the agenda. Attorney Ken Lane reported to the Board that there was a Joint subcommittee meeting to discuss Fraud Monitoring and Securities Litigation firms. Attorney Lane was given the assignment to research and recommend the top five Fraud Monitoring firm. Attorney Lane discussed his research criteria and distributed a list of seven of the top firms for the Board to consider. Attorney Lane also drafted a list of questions and a letter that can be used to invite firms to interview with the Board. It was moved by Trustee Wood and supported by Trustee Murphy to send Attorney Lane's information to the Joint subcommittee with the Police and Fire Retirement System to determine a date for interviews. Adopted by the following vote: 7 — 0. Trustee Murphy inquired if the fraud monitoring firms that were recommended, represented any Michigan municipalities. Trustee Wood updated the Board that the Police and Fire Retirement Board discussed having a Retirement Conference in 2011 instead of this year. The ERS Board agreed to take time to research ways to reach more people that would be more cost effective. Employees Retirement System j Regular Meeting of January 21, 2009 Page 4 It was moved by Trustee Wood and supported by Trustee Kraus to refer the retirement conference planning to the Education subcommittee. Adopted by the following vote: 7 — 0. Trustee Kraus expressed concern that the subcommittee start meeting now and not wait until next year to begin the planning of the conference. Attorney Kenneth Lane reviewed the new Trustee Orientation Policy. It was moved by Trustee Wood and supported by Trustee Singleton to approve the New Trustee Orientation Policy. Adopted by the following vote: 7 — 0. Trustee Wood updated the Board that she would work with the Retirement Office to send out the Retiree Health Care Generic Drug Letter. Trustee Kraus updated the Board that the RFP for Actuarial service is being edited. Attorney Ken Lane updated the Board that the Ordinance Changes subcommittee has the Qualified Plan Documents and he is available when the committee meets to review the documents. Karen Williams updated the Board that Kevin Beardsley of Gabriel, Roeder and Smith was invited to the Joint Board meeting to present a proposal on estimated costs and fees for the retirement calculator, valuation software and death check software The fee range would be between $32,000 and $38,000 to implement, plus an annual licensing fee. The IT Department would be invited to the presentation to advise the Board. Karen Williams distributed and John Jackson, Asset Consulting reviewed the Investment Report and Securities Lending Account Report for the month of December. Ms. Keri Hepburn of Invesco presented an investment opportunity for the Retirement Boards. Mr. Marvin Flewellen and Mr. James Lockhart of Invesco provided an overview of the Invesco Mortgage Recovery Fund. The Invesco team reviewed the Investment strategy, structure, team members and their process. Mr. James Lockhart reviewed details regarding the portfolio and performance investment. Mr. John Jackson, Asset Consulting Group, reviewed his criteria for evaluating the Invesco Mortgage Recovery Fund product and did not recommend the investment vehicle at this time. The meeting adjourned at 11:05 a.m. Minutes approved on Jerry Ambrose, Secretary Employees' Retirement System Robert Antekeier, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI February 19, 2010 Friday, 8:30 a.m. The Board met in regular session and was called to order at 8:38 a.m. Present: Antekeier, Dedic, Korkoske, Kraus, McCaffery, Singleton (8:44), Wood — 7. Absent: Trustees Bernero, Murphy Others: Karen E. Williams, Jerry Ambrose, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department), Brad Armstrong, Gabriel, Roeder, Smith and Company. It was moved by Trustee Dedic and supported by Trustee Kruas to approve the Official minutes of the Employees' Retirement System Regular Meeting of January 21, 2010 with amendments. Adopted by the following vote: 6— 0. Trustee Singleton arrived. 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, 1 retired. Total active membership: 595 Total deferred: 54. Refunds made since the last regular meeting amounted to $ 4,310.52. Retirement allowances paid for the month of January, 2010 amounted to $1,511,706.42. Total retirement checks printed for the ERS System: 799. 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. The Retirement Office reported 2 requests for Refund of Accumulated Contributions for Frank E. Ballard, II, FOP 911, $637/00; and Mr. David A. Tuthill, FOP 911, $3,481.20. Mr. Ballard and Mr. Tuthill were not vested. Employees Retirement System Regular Meeting of February 19, 2010 Page 2 It was moved by Trustee Wood and supported by Trustee Korkoske to excuse Trustee Murphy from the Employees Retirement System Meeting. Adopted by the following vote: 7 — 0. Mr. Brad Armstrong presented the City of Lansing Employees' Retirement System . Actuarial Valuation Report for December 31, 2008. Mr. Armstrong discussed valuation data, results, comments and conclusions. Mr. Armstrong provided a summary of benefit provisions, and financial principles and the actuary process. Mr. Ambrose requested insight into what areas should the City be concerned about when constructing a retirement incentive and its effect on liability to the retirement system. Mr. Armstrong stated that he would forward a GFO article that details issues involved with retirement incentive. Mr. Armstrong detailed some issues regarding the economic climate, personnel attrition, and payroll that would affect the City and Retirement system. Mr. Armstrong also reviewed Gabriel, Roeder, Smith and Company's recommendations for the retirement systems. He discussed the Employees' Retirement System having a separate trust. It was moved by Trustee Dedic and supported by Trustee Murphy to amend the travel policy to not limit the number of out-of-state trips, but limit the total expenses for trips to $3,000 annually. Adopted by the following vote: 7 — 0. Trustee Kraus recommended that the travel policy also be amended to include baggage fees. It was moved by Trustee Kraus and supported by Trustee Wood to amend the travel policy to include baggage fees with the appropriate receipts. Adopted by the following vote: 7 — 0. Karen Williams announced that International Conference sent out an e-mail requesting members who wished to attend the 2010 conference register early due to increased demand. It was moved by Trustee Wood and supported by Trustee Kraus to nominate and elect Robert Antekeier as chairperson and Scott Dedic as vice chair. Adopted by the following vote: 7 — 0. Employees Retirement System Regular Meeting of January 21, 2010 Page 3 The Board agreed to the following subcommittee assignments for 2010: Disability Committee Investment Committee Education Committee Ordinance Changes Committee Expanded for Special Projects Joint Ad Hoc Committee On Health Care Outside Legal Services Committee - Antekeier, Kraus, Singleton, Wood - Antekeier, Korkoske, Kraus - Antekeier, Korkoske, Murphy - Dedic, Kraus, Singleton, Wood - Dedic, Korkoske, Singleton, Wood Dedic, Kraus, Wood Attorney Ken Lane reviewed the memo from the City Attorney's Office regarding the Private Advisors Hedged Equity Fund, Ltd. The memo expressed concerns with the investment outlined by Clark Hill. Trustee Wood expressed concern regarding the Hedge Fund Equity's offshore account and the ability to redeem monies invested by the Board. Trustee McCaffery stated that he opposed the Hedge Fund Investment and that he voted against it. John Jackson addressed the concerns of trustees regarding the investment strategy. The Board agreed to keep Hedge Fund discussion on the agenda. Attorney Ken Lane reported to the Board that there was a Joint subcommittee meeting to discuss Fraud Monitoring and Securities Litigation firms. Attorney Lane was given the assignment to research and recommend the top five Fraud Monitoring firm. Attorney Lane discussed his research criteria and distributed a list of seven of the top firms for the Board to consider. Attorney Lane also drafted a list of questions and a letter that can be used to invite firms to interview with the Board. It was moved by Trustee Wood and supported by Trustee Murphy to send Attorney Lane's information to the Joint subcommittee with the Police and Fire Retirement System to determine a date for interviews. Adopted by the following vote: 7 — 0. Trustee Murphy inquired if the fraud monitoring firms that were recommended, represented any Michigan municipalities. Trustee Wood updated the Board that the Police and Fire Retirement Board discussed having a Retirement Conference in 2011 instead of this year. The ERS Board agreed to take time to research ways to reach more people that would be more cost effective. Employees Retirement System Regular Meeting of January 21, 2009 Page 4 I It was moved by Trustee Wood and supported by Trustee Kraus to refer the retirement conference planning to the Education subcommittee. Adopted by the following vote: 7 — 0. Trustee Kraus expressed concern that the subcommittee start meeting now and not wait until next year to begin the planning of the conference. Attorney Kenneth Lane reviewed the new Trustee Orientation Policy. It was moved by Trustee Wood and supported by Trustee Singleton to approve the New Trustee Orientation Policy. Adopted by the following vote: 7 — 0. Trustee Wood updated the Board that she would work with the Retirement Office to send out the Retiree Health Care Generic Drug Letter. Trustee Kraus updated the Board that the RFP for Actuarial service is being edited. Attorney Ken Lane updated the Board that the Ordinance Changes subcommittee has the Qualified Plan Documents and he is available when the committee meets to review the documents. Karen Williams updated the Board that Kevin Beardsley of Gabriel, Roeder and Smith was invited to the Joint Board meeting to present a proposal on estimated costs and fees for the retirement calculator, valuation software and death check software The fee range would be between $32,000 and $38,000 to implement, plus an annual licensing fee. The IT Department would be invited to the presentation to advise the Board. Karen Williams distributed and John Jackson, Asset Consulting reviewed the Investment Report and Securities Lending Account Report for the month of December. Ms. Keri Hepburn of Invesco presented an investment opportunity for the Retirement Boards. Mr. Marvin Flewellen and Mr. James Lockhart of Invesco provided an overview of the Invesco Mortgage Recovery Fund. The Invesco team reviewed the Investment strategy, structure, team members and their process. Mr. James Lockhart reviewed details regarding the portfolio and performance investment. Mr. John Jackson, Asset Consulting Group, reviewed his criteria for evaluating the Invesco Mortgage Recovery Fund product and did not recommend the investment vehicle at this time. The meeting adjourned at 11:05 a.m. Minutes approved on Robert Antekeier, Chairperson Employees' Retirement System Jerry Ambrose, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI May 20, 2010 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:44 a.m. Present: Trustees Antekeier, Dedic, Kraus, McCaffery, Wood — 5. Absent: Trustee Bernero, Murphy, Singleton Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee McCaffery and supported by Trustee Wood to approve the Official Minutes of the Employees Retirement System Board Regular Meeting of April 22, 2010. Adopted by the following vote: 5 — 0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 5 retired. Total: Active membership: 577. Total deferred: 54. Refunds made since the last regular meeting amounted to $ 676.00. Retirement allowances paid for the month of April, 2010 amounted to $1,521,693.46. Total retirement checks printed for the ERS System: 804. 1 death(s), Richard Mitchell, (Parks -Exempt), retired 1/7/1985, age 80, died 4/27/2010, spouse to receive 50%. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Kraus to approve the following applications for Regular Age & Service Retirement: Richard L. Wilkins (Finance -T580 Supervisory), 10 years of service, age 62, effective May 1, 2010. Thomas Korkoske (Finance -T214 Supervisory). 32 years, 1 month of service, age 53, effective May 15,2010. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI Regular Age and Service: (cont.) May 20, 2010 Thursday, 8:30 a.m. Page Two Scott Watson, (Public Service - UAW), 27 years of service, age 51, effective May 15, 2010. Tom Trayler (Public Service - UAW), 15 years, 4 months of service, age 62, effective May 28, 2010. Adopted by the following vote: 5 - 0. There were no requests for Refund of Accumulated Contributions. It was moved by Trustee Wood and supported by Trustee Dedic to excuse Trustee Michael Murphy from the Employees Retirement System Board Meeting. Adopted by the following vote: 5 - 0. Karen Williams distributed information regarding MAPERS Spring Conference at Soaring Eagle in Mt. Pleasant, Michigan, May 23 - May 25. Trustee Kraus updated the Board regarding the Request for Proposal for Actuarial Services. The proposal was given to Purchasing Divison to distribute. Trustee Kraus was waiting for responses. Attorney Kenneth Lane updated the Board regarding the Fraud Monitoring/Securities Litigation firms. Attorney Lane has been reviewing the contract documents for the two selected firms. Attorney Lane advised the Board that the three firms wou OFFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Special Meeting June 24, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:34 a.m. Present: Trustees Antekeier, Dedic, Kraus, Singleton, Wood — 5. Absent: Trustee Bernero, McCaffery, Murphy Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane;_ Clark Hill Law Office (representing the Law Department). It was moved by Trustee Wood and supported by Trustee Dedic to approve the_ Official Minutes of the Employees Retirement System Board Regular Meeting of May 20, 2010. Adopted by the following vote: 5 — 0. It was moved by Trustee Wood and supported by Trustee Dedic to approve the Official Minutes of the Joint Employees Retirement System and Police and Fire Retirement System Board Regular Meeting of May 20, 2010. Adopted by the following vote 5 -0 Trustee Wood requested that the minutes reflect that the Employees Retirement Board met in the Committee of the Whole on June 17, 2010. There was no quorum. Mark Parker announced his candidacy for the City Hall Trustee. Special Meeting June 24, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 2 Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 4 retired. Total active membership: 566. Total deferred: 55. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of May, 2010 amounted to $1,524,838.37. Total retirement checks printed for the ERS System: 806. 3 death(s), JoAnn E. Hanel, age 70, died 4/22/2010, spouse of UAW retiree; Joyce Dixon, age 78, died 5/26/2010, spouse of UAW retiree; Lucille Murphy, age 91, died 5/3/2010, spouse of NonBargaining retiree. Eligible domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported by Trustee Wood to approve the following applications for Regular Age & Service Retirement: Rosemarie Rosas, (Fire/Civilian —T580 CTP), 23 years, 9 months, age 44, effective June 1, 2010. Annette Hein, (Public Service —UAW), 26 years, 8 months, age 52, effective June 2, 2010 Mikel Myers, (Public Service — UAW), 11 years, 1 months, age 58, effective June 7, 2010. Clifford Mansfield, (Public Service - T580 Sup), 28 years, 7 months, age 52, effective June 19, 2010. Shawn Farnum (District Court -Exempt), 20 years, 4 months, age 47, effective June 26, 2010. Leslie Snyder (District Court - Teamster), 20 years, 7 months, age 44 years, 5 months, effective June 26, 2010 (with purchase of 1 month of service credit) Special Meeting June 24, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 3 Regular Age and Service Retirement: continued Craig Wilson (Finance — T580 Supervisory), 26 years, 4 months, age 52, effective June 26, 2010 Denise Packer (Police/Civilian-T580 CTP), 27 years, 2 months, age 59, effective June 27, 2010 Cheryl Hill (Public Service - UAW), 27 years, 3 months, age 48, effective June 30, 2010. Robert Welling (Public Service - T580 Supervisory), 25 years, 5 months, age 56, effective June 30, 2010. Adopted by the following vote: 5 — 0. There were no requests for Duty Disability. There were no requests for Non Duty Disability There were two requests for Refund of Accumulated Contributions. Sara Nelson, District Court, $13,553.98 Jeff Glasscock, Finance, $27,106.25 It was moved by Trustee Wood and supported by Trustee Kraus to accept the requests for Refund of Accumulated contributions. Adopted by the following vote: 5 — 0. It was moved by Trustee Wood and supported by Trustee Dedic to excuse Trustee Michael Murphy from the Employees Retirement System Board Meeting. Adopted by the following vote: 5 - 0. Special Meeting June 24, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 4 It was moved by Trustee Wood and supported by Trustee Dedic to excuse Trustee McCaffery and Trustee Murphy from the Board meeting of June 24, 2010, Adopted by the following vote: 5 — 0. The Board discussed the trustee vacancies for the City Hall and Public Service. Trustee Kraus requested if the elections could be held earlier. Karen Williams reviewed the election process for trustee vacancy. Trustee Kraus requested that the dates for the Public Service Trustee be held earlier. The following dates were agreed by the Board: July 1 the vacancy will be posted; August 2, 2010 will be the date for the nominating petition; August 10, 11 primary elections; August 17, 18 general elections. Karen Williams will email the posting and nominating petition to Trustee Kraus for distribution. Attorney Kenneth Lane distributed information regarding Ordinance Changes for Quorum requirements for the Employees Retirement System when there are vacancies on the Board. Trustee Wood requested support from the Board to get the amendment to City Council. It was moved by Trustee Wood and supported by Trustee Kraus to support the Ordinance amendment to change the quorum requirements for the Employees Retirement System when there are vacancies on the Board. Adopted by the following vote: 5 — 0. Attorney Ken Lane distributed and review the policy regarding providing an annual report to Council (292.10(b). Attorney Ken Lane reported to the Board that the Actuary Report and Asset Consulting Group annual report be sent to the City Clerk by July 15, 2010. Special Meeting June 24, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 5 It was moved by Trustee Wood and supported by Trustee Kraus to adopt the Annual Report to Council policy. Adopted by the following vote: 5 — 0. Karen Williams explained to the Board that Robert Antekeier is listed as the authorized signature for all investment accounts. With the retirement of Trustee Antekeier, the Board will need a new.authorized signature. It was moved by Trustee Wood and supported by Trustee Dedic to name Antonia Kraus, treasurer as authorized signature for all investment accounts. Adopted by the following vote: 5 — 0. Trustee Kraus announced that the Special Projects subcommittee received 4 proposals for actuary services, Gabriel, Roeder, Smith; EFI; Milman; and Rodwin. Trustee Kraus will work with subcommittee to review the proposals. Attorney Ken Lane updated the Board that legal had reviewed the document and provide it for the Ways and Means Committee on City Council. Attorney Ken Lane reported that he left a message for the Eric Tumbarella to review the security precautions for the Fraud Monitoring/Securities Litigation Update. Attorney Ken Lane distributed updates for the Trustee Books regarding the policy that the Board does not provide investment advice to employees. Attorney Ken Lane updated the Board on the TRowe Price investment. He is working with Asset Consulting to review the offering documents. Special Meeting June 24, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 6 Karen Williams distributed the Gabriel, Roeder, Smith, EDRO fees for July 2010/2011. There fees are: $600 for certification, $850 for calculation. It was moved by Trustee Wood and supported by Trustee Dedic to approve the Gabriel, Roeder, Smith and Company for July 2010/2011. Adopted by the following vote: 5 — 0. Trustee Wood distributed a letter from a retiree regarding a health care issue. The Board discussed the requests and recommended that the letter be forwarded to the Administration. The Board trustees thanked and expressed their appreciation for Trustee Antekeier's service to the Board. Karen Williams reviewed the Investment Monthly report for May. The meeting adjourned at 9:20 a.m. Minutes approved on Jerry Ambrose, Secretary Employees Retirement System Robert Antekeier, Chairperson Employees Retirement System 1 OFFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 22, 2010 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:34 a.m. Present: Trustees Dedic, Kraus, McCaffery, Parker, Singleton, Wood — 6. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the Law Department). Karen Williams distributed a memo from the Jerry Ambrose that reported the results of the City Hall Trustee election. Mr. Ambrose requested that the Board declare Mr. Mark Parker, the candidate with the most votes, to replace the unexpired term, ending June. 30, 2012 for the position vacated by Thomas Korkoske. The Board of Canvassers reviewed and certified the results, declaring Mr. Mark Parker as the new City .Hall Trustee. It was moved by Trustee McCaffery and supported by Trustee Wood to accept .,the results of the City Hall Trustee Election and approve Mr. Mark Parker as new Board member. Adopted by the following vote: 5 — 0. The Board recessed at 8:35 a.m. to allow Mr. Parker to be sworn in by the City Clerk's office. The resumed in session at 8:41 a.m. and Mr. Parker returned to the meeting. It was moved by Trustee Wood and supported by Trustee Kraus to approve the minutes of the Employees Retirement System Board Special Meeting of June 22, 2010. Adopted by the following vote: 6 — 0 Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 22, 2010 Thursday, 8:30 a.m. Page 2 Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 10 retired. Total active membership: 554. Total deferred: 54. Refunds made since the last regular meeting amounted to $ 40,660.23. Retirement allowances paid for the month of June, 2010 amounted to $1,593,185.20. Total retirement checks printed for the ERS System: 811. 3 death(s), Carmeleta Stanley (Finance/Exempt - retired 1/1/1969), age 101, died 7/5/2010, no beneficiary; Margie M. Dyer, (District Court Teamster, retired 2/4/1986), age 84, died 5/13/2010, no beneficiary; Zella Pitts, age 92, died 6/16/2010, surviving spouse of Public Service retiree. Eligible domestic relations orders received: O. Domestic relations orders pending: 1. Eligible domestic relations orders certified: O. It was moved by Trustee Wood and supported by Trustee Wood to approve the following applications for Regular Age & Service Retirement: Robert Antekeier, (Public Service -T580 Supervisory), 26 years, 4 months, age 52, effective 7/1/2010 (with purchase of 5 years of universal -buy -in time) Jimmy L. Butt, Jr. (Police (Civilian) - T580 CTP), 24 years, 6 months, age 57, effective 7/1/ 2010. (Retirement Incentive Program) Carl A. Calille, (Planning - UAW), 27 years, 3 months, age 49, effective /1/2010. (Retirement Incentive Program) Esther Croff (Finance -T580 CTP), 23 years, 1 month, age 57, effective 7/1/2010 (with purchase of 3 years of universal buy -in time) R o n a I d L. Detlzer (Public Service - T580 Supervisory), 31 years of service, age 51, 7/1/2010 (Retirement Incentive Program) Estela Escamilla (Finance - T580 CTP), 28 years, 4 months, age 47, effective 7/1/2010 (with purchase of 3 years of universal buy -in time) Richard Hansel (Public Service -UAW), 20 years, 3 months, age 59, effective 71/2010 (Retirement Incentive Program) Paul Hayes (Public Service - T580 Supervisory), 24 years, 10 months, age 51 Effective 6/23/2010 (Retirement Incentive Program) Ratana Hayes (Fire Civilian) - T580 CTP), 22 years, 1 month, age 49, effective6/22/2010 (with purchase of 2 years of universal buy -in time) Regular Meeting July 22, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 3 Applications for Regular Age & Service Retirement: continued Steven Hudson (Public Service - UAW), 31 years, age 53, effective 7/1/2010 (with purchase of 2 years of universal buy -in time) Sharon Johnson (Planning -UAW), 29 years, 2 months, age 57, effective 7/1/2010 (Retirement Incentive Program) Christine Kutt (Finance - T580 CTP), 33 years, 6 months, age 52, effective 7/1/2010 (with purchase of 3 years of universal buy -in time) John Kutt (Finance - T580 CTP), 32 years, 10 months, age 58, effective 7/1/2010 (with purchase of 3 years of universal buy -in time) Joan Lenhard, (Parks - T580 CTP), 25 years, 1 month, age 54, effective 7/1/2010 (Retirement Incentive Program) Denise Lynch (Parks -T580 CTP), 26 years, 2 months, age 58, effective 7/1/2010 (With purchase of 3 years of universal buy -in time) William H. Martin, Jr. (Public Service - UAW), 25 years, age 55, effective 7/1/2010 (Retirement Incentive Program) 0 s c a r G. Mazuca, (Parks - UAW), 20 years, 5 months, age 58, effective 6/15/2010 (Retirement Incentive Program) Geralyn J. McClymont (Planning - UAW), 22 years, 1 month, age 61, effective 7/1/2010 (Retirement Incentive Program) K i m E. Mingus (Finance - T580 Supervisory), 23 years, 2 months, age 54, effective 7/1/2010 (Retirement Incentive Program) Suzanne Moore (Planning - T580 CTP), 29 years, 6 months, age 55, effective 7/1/2010 (Retirement Incentive Program) Robin L. Osterhaven ( District Court Exempt), 20 years, 6.5 months, age 51, effective 7/1/2010 (Retirement Incentive Program) E d wa rd Monroe (Finance - UAW), 24 years, 10 months, age 61, effective 7/1/2010 (Retirement Incentive Program) Denise A. Packer (Police/Civilian - T580 CTP), 25 years, 2 months, age 59, effective 6/26/2010 (Retirement Incentive Program) Regular Meeting July 2211, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 4 Applications for Regular Age & Service Retirement: continued Jamie Peterson (District Court Teamster), 24 years and 11 months, age 53, effective 7/1/2010 (Retirement Incentive Program) D a v i d Phelps (Public Service - UAW), 30 years, 10 months, age 55, effective 7/1/2010 (Retirement Incentive Program) Rick Reed (Public Service - T580 Supervisory), 33 years, age 51, effective 7/1/2010 (with purchase of 5 years of universal buy -in time) J o h n M. Roberts (Law-NonBargaining Supervisory), 24 years, 4 months, age 66, effective 7/1/2010 (Retirement Incentive Program) M a r k A. Russ (Public Service - T580 Supervisory), 24 years, 8 months, age 51, effective 7/1/2010 (Retirement Incentive Program) Eric Stinson (Parks - UAW), 15 years, 10 months, age 61, effective 7/1/2010 (Retirement Incentive Program) S u e Podleski (Law -T214), 25 years, age 52, effective 7/1/2010 (with purchase of 4 years, 8 months of universal buy -in time) Bonita Schade (Police/Civilian -T580 CTP), 15 years, age 66, effective 7/16/2010. Wendy S. Dipenhorst (Human Resources - T580), 9 years, 11 months, age 58, effective 7/1/2010 (From Deferred) Adopted by the following vote: 6 — 0. There were no requests for Duty Disability. There were no requests for Non Duty Disability There were no requests for Refund of Accumulated Contributions. Trustee Kraus inquired if Trustee Murphy was still a member of the Employees Retirement System Board. Trustee Dedic reported that Mr. Murphy is no longer a member. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 22, 2010 Thursday, 8:30 a.m. Page 5 Karen Williams distributed information of Fall MAPERS Conference, September 26 — 28. Ms. Williams requested that Trustees complete their registration form and pick their room selection. Attorney Kenneth Lane reported he was worked with John Jackson of Asset Consulting to complete the review of the TRowe Price contracts. Once the contract has been signed, TRowe Price is scheduled to be funded August 4, 2010. Trustee Kraus reported to the Board that there were no nominating petitions received thus far. She has reached out to the Public Service Departments. Trustee Kraus also requested the Retirement Office contact Waste Water division of Public Service to remind members of the posting. Trustee Kraus inquired to the Board the status of the Parks Department trustee. Trustee Kraus requested an explanation of Trustee Scott Dedic's status as citizen representative trustee. Trustee Wood explained that Trustee Dedic had been appointed by the Mayor as the citizen representative. There was an amendment to the Ordinance and the appointment was brought to the City Council for enactment. Attorney Kenneth Lane added that the City Attorney's office reviewed the Ordinance and drafted an amendment that would allow Trustee Dedic to be named as citizen representative to maintain a quorum. With Trustee Dedic new position, it was determined that he would not be eligible as the Park Department Trustee. Trustee Kraus also inquired if the Ordinance amendment to change the quorum requirements for the Employees Retirement System when there are vacancies on the Board was still pending. Trustee Wood stated that both Ordinance amendments were enacted at the same time. Trustee Kraus requested that a posting for the Parks Department be on the agenda for next month. Trustee Dedic reported that the Board will be reviewing the committee assignments and requested that members contact him regarding what subcommittee they would like to serve. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI July 22, 2010 Thursday, 8:30 a.m Page 6 Trustee Kraus reported that the Special Projects subcommittee is working on a score sheet for the 4 proposals for actuary services, Gabriel, Roeder, Smith; EFI; Milman; and Rodwin. Trustee Kraus will work with subcommittee to review the proposals. Attorney Kenneth Lane reported that the approved draft Ordinance is with the City Attorney's review. Attorney Lane will try to get a timeline for the Board. Trustee Kraus inquired if it was too late to add a sunset to the citizen representative section. Trustee Kraus had concerns that the citizen representative should be a resident of the City of Lansing. Trustee Wood reported that the Ordinance would have a ten year sunset and be subject to review. It was moved by Trustee Kraus and supported Trustee Wood that citizen representative position have a sunset to the current four-year term and be subject to review under the appropriate section of the Ordinance. Trustee Dedic recused himself from the vote. Trustee McCaffery inquired if a member who is not an employee and nonresident of the City can be chairperson. Trustee Kraus explained that Trustee Dedic has replaced Mr. Michael Murphy. Trustee Kraus reviewed the Board rules and Ordinance to determine if one of the three elected members must serve as chair or vice chair. Trustee Kraus explained that any member of the Board can serve as chair or vice chair. Adopted by the following vote: 5 — 0 Attorney Ken Lane reported to the Board that he contacted the IT representative for review of the computer security concerns raised by the Board. Attorney Lane reported that he is waiting for a response. Attorney Ken Lane reported that he spoke with the City Attorney's Office who reviewed three Fraud Monitoring/Securities Litigation firm. The City Attorney had concerns with the Robbins, Gellar, Rudman & Dowd firm and added the Barrack, Rodos and Bacine firm to the approved list to represent the Retirement System. Trustee Wood expressed concerns that the Board voted on two firms, not three and inquired about the addition. Attorney Ken Lane explained that the City i Attorney had to approve outside legal counsel. Attorney Lane also reviewed the fraud allegations and convictions for Robbins, Gellar, Rudman & Dowd and Milberg, LLP. Attorney Lane noted that these allegations have been addressed and corrected by the firms in question. Karen Williams reviewed the Investment Monthly report for June. The meeting adjourned at 9:22 a.m. Minutes approved on Jerry Ambrose, Secretary Employees Retirement System Scott Dedic, Chairperson Employees Retirement System i OFFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI September 23, 2010 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:37 a.m. Present: Trustees Kraus, McCaffery, Parker, Rose, Singleton, Wood — 6. Absent: Trustee Bernero, Dedic Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee McCaffery and supported by Trustee Wood to approve the Official Minutes of the Joint Employees Retirement System and Police and Fire Retirement System Regular Meeting of August 17, 2010. Adopted by the following vote: 6 — 0. _ It was moved by Trustee Wood and supported by Trustee Parker to approve the Official Regular Meeting Minutes of August 19, 2010. Adopted by the following vote: 6 — 0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 522. Total deferred: 53. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of August, 2010 amounted to $1,667,174.39. Total retirement checks printed for the ERS System: 846. 2 death(s) Goldie Fraker, died 9/8/2010, age 72, spouse of Public Service Exempt member; Donald E. Brown, died 9/12/2010, age 82, spouse of Public Service member. 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 Rose to approve the Regular Age & Service Retirement: Denise Acker - NonDuty Death (Police/Civilian, Teamster 580), 11.23 years of service, age 55, effective 8/13/2010. Regular Meeting September 23, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 2 Karen Williams explained that Ms. Denise Acker's pension will be paid to her husband as allowed by the Employees Retirement System Ordinance. When a vested employee dies while in the employee of the City, the pension is paid to the Option A beneficiary as if the employee had died the day prior to his or her death. Approved by the following vote: 6 — 0. It was moved by Trustee Wood and supported by Trustee Rose to approve the following Requests for Regular Age and Service Retirement: Terese Horn, (City Council Staff), 22 years, 10 months of service, age 58, effective 8/27/2010. John Hodges, (Planning, Teamster 580), 14 years, 2 months of service, age 61, effective 9/29/2010. (purchase 5 years of universal -buy of service) Adopted by the following vote: 6 — 0. There were no Requests for Duty Disability Retirement. There were no Requests for Non -Duty Disability Retirement. There were no Requests for Refunds of Accumulated Contribution. Karen Williams reported to the Board that Trustee Dedic contacted the Retirement Office and requested an excused absence from the meeting. It was moved by Trustee Wood and Trustee Singleton to excuse Trustee Dedic from the Employees Retirement System Board meeting. Trustee Kraus explained for the new members that the ex -officio members of the Board, the City Treasurer and Human Resource Director, were not required to be excused from meetings. Adopted by the following vote: 6 — 0. Karen Williams distributed registration material for the MAPERS Fall Conference. She informed the trustees that they should show their State tax exemption form to the hotel upon check out. Regular Meeting September 23, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 3 The ERS Board reviewed the Subcommittee assignments. Trustee Kraus requested to be removed from the Education subcommittee. Trustee Kraus suggested that members to review the committee descriptions and decide what committees they wish to serve on for the next meeting. Attorney Ken Lane provided an update regarding the Fraud Monitoring Firms. Attorney reviewed securities fraud monitoring for the new trustees. The City Attorney placed Robbins, Gellar, Rudman & Dowd, Milberg and Barack, Rodos on the outside legal counsel list. However, the Board will not be required to use Barack, Rodos. Trustee Kraus updated the Board that the Special Projects subcommittee will review the 4 proposals for actuary services, Gabriel, Roeder, Smith; EFI; Milman; and Rodwin, once the scoresheet has been finalized. Attorney Kenneth Lane reported that the approved draft Ordinance is with the City Attorney's review. Attorney Lane discussed the timeline with Attorney Jack Roberts, so that the draft review could be completed by the end of October. Attorney Lane will provide copies of the Ordinance draft for the new members. Karen Williams informed the Board that Trustee Dedic will report to the Board regarding his resignation from the Parks position, once it has bee finalized. He is working with the City Attorney's Office to complete the process. Karen Williams reviewed the Investment and Securities Lending Monthly report for August. Attorney Ken Lane requested permission and then informed the Board that the City Attorney has joined a state lawsuit regarding Michigan pharmacies. Attorney Lane discussed that the Board had some holding in the pharmacies that were named in the litigation. Attorney Lane opined that the Board did not have any direct involvement or prior knowledge of the lawsuit and therefore was not violating its fiduciary responsibilities. Trustee Wood expressed concerned that how lawsuit is settled may have an impact on investment. Attorney Lane stated that he would contact Asset Consulting to advise the Board regarding the impact on its holding. It was moved by Trustee Wood and supported by Trustee Rose to have legal counsel draft a litigation policy that would provide a procedure to notify the Board of litigation that potentially impact security holdings of the retirement system. Adopted by the following vote: 6-0. It was moved by Trustee Singleton and supported by Trustee Rose' to adjourn the meeting. The meeting adjourned at 9:07 a.m. Minutes approved on Jerry Ambrose, Secretary Employees Retirement System Antonia Kraus, Vice Chairperson Employees Retirement System OFFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI October 21, 2010 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:34 a.m Present: Trustees Dedic, Kraus, McCaffery, Parker, Rose, Wood — 6. Absent: Trustee Bernero, Singleton Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Wood and supported by Trustee McCaffery to approve the Official Minutes of the Joint Employees Retirement System and Police and Fire Retirement System Regular Meeting of September 23, 2010. Adopted by the following vote: 6 — 0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total active membership: 515. Total deferred: 55. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of September, 2010 amounted to $1,659,418.47. Total retirement checks printed for the ERS System: 845. 1 death(s) Carmaleta Stanley, died 7/5/2010, (Finance — NonBargaining, retired 1/1/1969), age 101, no surviving beneficiary. 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 Kraus to approve the Regular Age & Service Retirement: Linda M. Gazella (Mayoral Staff), 11 years of service, age 58, effective 9/13/2010 (From Deferred) Approved by the following vote: 6 — 0. There were no Requests for Duty Disability Retirement. Karen Williams reported Case #2010-E1021, Request for Non -Duty Disability Retirement. Regular Meeting October 21, 2010 Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 2 It was moved by Trustee Kraus and supported by Trustee Wood move Case #2010- E1021, Request for Non -Duty Disability Retirement to the disability subcommittee. Adopted by the following vote: 6 — 0 There were no Requests for Refunds of Accumulated Contribution. Trustee Bob Rose provided a report for the MAPERS Fall Conference. Trustee Rose found the sessions to be informative and he enjoyed and was impressed with this first conference. Trustee Rose discussed sessions that described Michigan's financial status and future revenue sharing. Trustee Parker added that the Conference provided a good overview and concurred with Trustee Rose's assessment of the conference. Attorney Kenneth Lane reported that he also attended the Conference and he distributed a legislative update for amendments to Public Act 314. Attorney Lane reviewed HB 5323, HB 5982 and SB 1240. Trustee Kraus reported that she attended the NCPERS Conference for the Police and Fire Retirement Board. Trustee Kraus discussed Omaha, Nebraska that was funded at 40% last year, had a worse funding level this year and had concerns about running out of money in twenty years. Trustee Kraus also discussed other public safety around the country that had concerns. Trustee Kraus discussed media issues and how to stay on message. Trustee Kraus stated that the City of Lansing pension were in good shape, among the best of the public safety attendees. Karen Williams requested approval from the Board to pay membership dues for NCPERS ($150), International Foundation ($370), and MAPERS ($50). Trustee Kraus suggested that the Board review the NCPERS upcoming agenda to determine if there were any conferences of interest. The Board inquired if NCPERS would allow a City of Lansing membership similar to International Foundation. Karen Williams will check on NCPERS for next month. It was moved by Trustee Wood and supported by Trustee Kraus to pay International Foundation and MAPERS dues from the Securities Lending. Adopted by the following vote: 6 -0. Karen Williams distributed an email from Asset Consulting Group and discussed the Due Diligence Trip to New York for December 7 — 8. Asset Consulting Group provided a suggested agenda and will help schedule a hotel. Asset Consulting Group proposed that trustees fly into New York, December 7th and meet with MD Sass and Milberg on the first day. On December 8th, Trustees will meet with ING and Artio, and then fly Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI October 21, 2010 Thursday, 8:30 a.m. Page 3 back to Lansing. Trustee Kraus suggested that interested members coordinate with the Police and Fire System to arrange flights. It was moved by Trustee Kraus and supported by Trustee Wood to pay the travel and hotel expenses of the Due Diligence Trip to New York for any trustees from the Employees Retirement System that wanted to attend. Adopted by the following vote: 6 — 0. Attorney Ken Lane distributed the Board's new litigation policy. The policy would provide a procedure to notify the Board of litigation that potentially impacts security holdings of the retirement system. Attorney Lane also reported to the Board that he contacted John Jackson, Asset Consulting Group regarding the pending City pharmacy lawsuit. Attorney Lane asked Mr. Jackson if there were any concerns regarding the Board's investment. Mr. Jackson did not indicate any concerns. It was moved by Trustee Wood and supported by Trustee McCaffery to approve the Litigation Policy, and that this policy will supersede any litigation policies of the Employees Retirement System. Adopted by the following vote: 6 — 0. Attorney Ken Lane discussed a list of policies presented by Attorney VanOverbeke at MAPERS that retirement systems should have in place. Attorney Lane suggested that he review the list to determine if there were any policies that were needed by the Employees Retirement System Board. It was moved by Trustee Wood and supported by Trustee Rose to have legal counsel review the MAPERS presentation regarding Board policies and determine what policies that the Employees Retirement System should have. Adopted by the following vote: 6 — 0. Trustee Kraus updated the Board regarding the Actuary Bid process. Trustee Kraus stated that the proposal had been received. The Joint Committee for Special Projects will review the proposals. Attorney Ken Lane reported to the Board that he spoke with Attorney Jack Roberts regarding the October deadline to complete his review of the ERS Ordinance. Attorney Roberts informed Attorney Lane that he was on target to complete the ERS Ordinance. Trustee Dedic :reported to the Board that they can move :forward with recommended dates for the Trustee Election vacancy for the Parks position. The ERS Board reviewed the Subcommittee assignments. The following subcommittee assignments were approved: Disability committee: Investment committee: Education committee: Ordinance Change/ Special Projects: Joint Ad Hoc Committee On Health Care: Outside Legal Services: Kraus, Singleton, Wood Kraus, McCaffery, Rose, Wood Dedic, Parker, Rose Dedic Kraus, Singleton, Wood Dedic, Singleton, Wood Dedic, Kraus, Singleton, Wood Karen Williams reviewed the Investment and Securities Lending Monthly report for August. It was moved by Trustee Rose and supported by Trustee Parker to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:15 a.m. Minutes approved on Jerry Ambrose, Secretary Employees Retirement System Scott Dedic, Chairperson Employees Retirement System OFFFICAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Special Meeting November 30, 2010 Council Conference Room Tuesday, 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: Trustees Dedic, Kraus, Parker, Rose, Wood — 5. Absent: Trustee Bernero, McCaffery, Singleton Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Wood and supported by Trustee McCaffery to approve ".the Official Minutes of the Employees Retirement System Regular Meeting of October 21, 2010. Adopted by the following vote: 5 — 0. Secretary's Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 517. Total deferred: 50. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of October, 2010 amounted to $1,657,517.42. Total retirement checks printed for the ERS System: 844. 3 death(s) Doris L. Wagner, died 6/25/2010, age 87, spouse of Exempt retiree; Barbara Bellmer, died 7/3/2010, (District Court Exempt — retired 11/21/1992), age 76, no surviving beneficiary; Grace Sleep, died 8/30/2010, age 89, spouse of retiree. 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 Kraus to approve the Regular Age & Service Retirement: James VanAmburg (Public Service — T580 Supervisory), 23 years, 2 months of service credits, age 55, effective 11/13/2010 (65 points) Kathleen A. Evans (FOP 911), 15 years, 1 month service credits, age 61, effective 11/20/2010 Approved by the following vote: 5 — 0. Special Meeting November 30, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 2 There were no Requests for Duty Disability Retirement. Karen Williams updated the Board regarding Case #2010-E1021, Request for Non -Duty Disability Retirement. The applicant was schedule to see Dr. Roth, December 8, 2010. Ms. Dawn R. Teall, 911 Center, has submitted a request for her refunds of accumulated contributions of $35,703.18 It was moved by Trustee Wood and supported by Trustee Rose to receive acknowledgement of the Request for refund of accumulated contributions by Dawn R. Teall. Adopted by the following vote: 5 - 0. It was. moved by Trustee Wood and supported by Trustee Rose to excuse Trustee McCaffery from the ERS meeting. Adopted by the following vote: 5 — 0. Karen Williams requested approval from the Board to pay membership dues for NCPERS and split the cost with the Police and Fire Board. Ms. Williams distributed background and information regarding the NCPERS. It was moved by Trustee Kraus and supported by Trustee Wood to share the cost of the NCPERS members with the Police and Fire Retirement Board from the Securities Lending account. Adopted by the following vote: 5 -0. There were no public comments for items not on the agenda. Karen Williams distributed the 2011 Meeting Schedule for the Employees Retirement System Board and requested approval for the dates. It was moved by Trustee Rose and supported by Trustee Kraus to approve the 2011 Meeting Schedule. Adopted by the following vote: 5 -0 Special Meeting November 30, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 3 Karen Williams reported that the Retirement Office received notification from Budget Director, Angela Bennett that a contribution of $7,186,000 has been contributed to the Retirement System in advance of the actuary report. It was moved by Trustee Wood and supported by Trustee rose to recognize the City's contribution to the Retirement system of $7,186,000. Trustee Kraus inquired about the reason for receiving the contribution prior to actuarial evaluation. Trustee Dedic explained that the timing is due to past practice and the Board calendar year ends December 31 and does not follow the City's fiscal year. Trustee Dedic also reported that the City Attorney's office did review the current November 1 date used by the Actuary and there was no legal or IRS reasoning for that particular date. Adopted by the following vote: 5 — 0. Attorney Ken Lane expressed his appreciation that the Retirement Board was willing to pay his expenses for the Due Diligence Trip to New York. However, Attorney Lane requested that his company provide additional resources for him to attend. His request was granted by Clark Hill Karen Williams reviewed the travel and hotel arrangements for the Due Diligence Trip to New York for December 7 — 8. Asset Consulting Group provided an agenda that trustees fly into New York, December 7th and meet with MD Sass and Milberg on the first day. On December 8th, Trustees will meet with ING and Artio, and then fly back to Lansing. Trustee Wood explained that the Retirement Board has been investigating Pension Software for the website and the Retirement Office. Trustee Wood discussed that issues included migrating information from Bridge and continuation of service within the Retirement Office. Trustee Wood discussed having a Project Manager to coordinate safeguard the data and data migration to a new system and assist with implementing a comprehensive database. Trustee suggested that this cost should be shared by both systems. Trustee Kraus inquired what types of retirement data need to be mined from the Bridge system. Trustee Parker requested an explanation of the project manager role. Trustee Wood explained the Project Manager would provide a scope of project, timetable and coordinate and troubleshoot any issues with implementation. Special Meeting November 30, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page 4 Trustee Kraus also added that the Project Manager would be a consultant from outside the City who would oversee the implementing a pension software retirement system. Trustee Kraus stated that she has discussed with the administration that the City would not eliminate the old Bridge system. Trustee Rose inquired about the future costs regarding the project manager to mai OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting December 16,201:0 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 8:44 a.m. Present: Dedic, Kraus, McCaffery, Parker, Singleton, Wood - 6 Absent: Trustee Bernero, Rose Others: Karen E. Williams, Eric Tumbarella, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Wood and supported by Trustee Parker to approve the Official minutes of the Joint Police and Fire and the Employees Retirement System Regular Meeting of November 18, 2010. Adopted by the following vote: unanimously It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official minutes of the Employees Retirement System Regular Meeting of November 30, 2010. Adopted by the following vote: unanimously There were no public comments for items on the agenda. Secretary's Report. 0 new member(s), 0 reinstate ment(s), 1 refunds(s), 0 transfers, 2 retired. Total active membership: 509. Total deferred: 50. Refunds made since the last regular meeting amounted to $35,703.18. Retirement allowances paid for the month of November 2010 amounted to $1,697,036.78. Total retirement checks printed for the ERS System: 846. 3 death(s). James D. Goodin, died 10/18/2010 (Executive Plan), retired, 11/1/1989, age 60, beneficiary to receive 50%; Bert W. Jackson, 11/29/2010, (NonBargaining), retired 6/15/1993, age 89, no beneficiary; Vernon C. Fountain, died 12/9/2010 (Exempt), retired 11/21/1992, age 78, no beneficiary. 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. Employees Retirement System Regular Meeting of December 16, 2010 Page 2 There were no requests for duty disability retirements. Ms. Williams reported that she had spoken to the medical director regarding non -duty applicant E2010-1021. His report is almost done and he will forward it to the Retirement Office when it has been completed. There were no Requests for Refunds of Accumulated Contributions. It was moved by Trustee Wood and supported by Trustee Parker to excuse Trustee Rose from the Board Meeting. Adopted by the following vote: 6 -0. Trustee Mark Parker provided a report of the New York Due Diligence Visit. He reported that he learned a lot regarding real estate and enjoyed the Milberg presentation. Trustee Singleton concurred and related that she especially enjoyed ING Clarion Real Estate Presentation. She encouraged all trustees to attend the future due diligence visit. Trustee Kraus also provided an overview of the ING Clarion, MD Sass, and Milberg Presentation. Trustee Kraus expressed her concerns regarding Artio Investments. Trustee Dedic also suggested having a policy regarding how claims are filed with the fraud monitoring firms. Attorney Ken Lane concurred that the Board should have a policy and internal procedure on how claims are filed with the fraud monitoring firms. Attorney Lane briefly also discussed the Milberg investigative techniques. Karen Williams distributed a survey from MAPERS requesting financial information regarding the retirement system. Ms. Williams reported that the Police and Fire Retirement Board recommended that the Retirement Office send a copy of Actuary Report and year-end financial data and the investment report. It was moved by Trustee Wood and supported by Trustee Parker to send a copy of the actuary report and the year-end investment report to MAPERS in response to their survey. Adopted by the following vote: 6 — 0. Employees Retirement System Regular Meeting of December 16, 2010 Page 3 Karen Williams updated the Board regarding Mr. John Salmons who wished to change his beneficiary post retirement. Ms. Williams distributed a memo from Brad Armstrong, Gabriel, Roeder, Smith responding to the issues and concerns of a change to a beneficiary post-retirement. It was moved by Trustee Wood and supported by Trustee Kraus to have legal counsel provide clarification of the impact that a change of beneficiary post-retirement would have on the retirement fund. Adopted by the following vote: 6 — 0 Karen Williams distributed a memo from Asset Consulting Group recommending that the Employees Retirement System re -invest UBS and ING Clarion cash dividends into the real estate portfolio. It was moved by Trustee Kraus and supported by Trustee Parker to follow the Asset Consulting Group recommendation to re -invest cash dividends from UBS and ING Clarion back into the real estate portfolio. Adopted by the following vote: 6 - 0 Karen Williams updated the Board regarding Asset Consulting Group memo that recommended replacing Northpointe. Ms. Williams reported that at the Joint Meeting, the Employees Retirement System did not have a quorum and did not vote to replace Northpointe. Ms. Williams informed the Board that John Jackson of Asset Consulting Group would like to meet with the Joint Investment subcommittee on January 19, 2011 to choose finalists for the Boards to interview. Trustee Singleton requested that she would like the opportunity to hear Northpointe. The Board discussed having Northpointe included with Asset Consulting Group Small/Mid Cap Investment Company search presentation on January 19, 2011. It was moved by Trustee Wood and supported by Trustee Parker to have Northpointe included in the Asset Consulting Group Small/Mid Cap Investment Company search presentation. Adopted by the following vote: 6 — 0. Employees Retirement System Regular Meeting of December 16, 2010 Page 4 Karen Williams distributed a memo from Asset Consulting Group regarding the Munder Acquisition of Integrity agreement. Asset Consulting Group had no issue with Munder and recommended the Board sign the Integrity Agreement letter concerning the acquisition. Karen Williams also informed the Board that the agreement was sent to legal counsel review. Attorney Lane had no issues with the Integrity agreement letter. It was moved by Trustee Wood and supported by Trustee Parker to follow the recommendation of Asset Consulting Group and have the chairperson sign the Integrity Agreement Letter regarding the Munder acquisition. Adopted by the following vote: 6 — 0. Karen Williams updated the Board that she met with Eric Tumbarella, Mark Colby and Jerry Ambrose regarding comprehensive pension software for the Retirement Office. Mr. Tumbarella suggested Ms. Dawn Polihonki as a project manager to assist with selecting a vendor. He provided a proposal for her services from the Dewpoint Company for the Board's consideration. Attorney Ken Lane provided a contract based upon the Dewpoint proposal. The Board discussed the proposal and the duties of the project manager. It was moved by Trustee Wood and supported by Trustee Kraus to contract with Dewpoint for the services of Ms. Dawn Polihonki as project manager to assist the Board with the selection of comprehensive retirement software. The funding for the contract would be contingent on final legal counsel review and not exceed $20,000 and the cost would be split with the Police and Fire Retirement Board. Adopted by the following vote: 6 - 0 Karen Williams distributed a copy of the Police and Fire Board letter to City Council regarding Board appointment. Trustee Kraus requested assistance to help to finalize the actuary bid process review so that interviews can be scheduled. Attorney Ken Lane distributed copies of a suggested Code of Ethics for the Employees Retirement System Board. The Board requested a month to review the policy. Attorney Lane updated the Board that the ERS Ordinance review was near completion from the City Attorney Office and would be presented to City Council. Employees Retirement System Regular Meeting of December 16, 2010 Page 5 Karen Williams updated the Board regarding the Parks Trustee Election vacancy. Ms. Williams had been informed that Trustee Dedic was approved as the citizen representative and has vacated the Parks Trustee Position. Ms. Williams stated that a posting approved by the Board had been forwarded to the Parks Departments. Nominations would be due January 19, 2011. Karen Williams distributed and discussed the Investment and Security Lending Monthly report It was moved by Trustee Wood and supported by Trustee McCaffery to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 10:20 a.m. Minutes approved on Jerry Ambrose, Secretary Employees' Retirement System Scott Dedic, Chairperson Employees' Retirement System