Loading...
HomeMy WebLinkAbout2012 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 21, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:35 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); John Jackson, Asset Consulting Group; Chris Lake, Bryan Epling, IAFF, Daniel Hamel, Fire retiree. It was moved by Trustee Oleson and supported by Trustee Heckel to approve the Official Minutes of the Police and Fire Retirement Board Meeting of January 17, 2012 as amended. ^ Adopted by the following vote: 7 - `0 Trustee Wood was granted permission to add item F to the agenda regarcfrig S3 City Audit Management Letter. 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: 360. 1 death(s). Robert F. Swenson, Police, died February 12, 2012, age 85, no beneficiary. Refunds made since the last regular meeting amounted to $33,310.43. Retirement allowances paid for the month of January 2012 amounted to $2,121,687.53. Total retirement checks printed for the P&F System: 672. Total retirement checks printed for both systems: 1516. Domestic relations order received: 2. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Fabus and supported by Trustee Kraus to approve the following applications for Regular and Age Service Retirement: Raymond Hall, Police Department, 25 years of service credit, age 49, effective February 18, 2012. (with purchase of 16 months of service credits) Adopted by the following vote: 7 -0. Regular Meeting February 21, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams updated the Board regarding the duty disability Applicant #2011- P1213. The Retirement Office received applicant's paperwork and the applicant has been scheduled to see the Medical Director. There were no requests for Non Duty Disability Retirements. There were no requests for Refunds of Accumulated Contribution. Karen Williams announced to the Board that the NCPERS Annual Conference will be held in New York, May 5-10. Trustees that are interested to attending the Conference should contact the Retirement Office. Trustee Brad St. Aubin opened the floor for public comments for items not on the agenda. Mr. Daniel Hamel, Fire retiree, distributed his medical report and addressed the Board regarding his concerns with the Fire Department. Mr. Hamel feels that he has been harassed by fire department members regarding his duty disability retirement. Mr. Hamel works with his local volunteer fire department. He states that he had permanent restrictions placed on him by the City's medical doctors. Mr. Hamel is willing to be re-evaluated by the Board's medical director. Trustee Hecksel stated that the Police and Fire Retirement Board received information regarding Mr. Hamel's work with his local fire department. Trustee Hecksel informed the Board that Mr. Hamel will be sent to be medical director Trustee Kraus informed Mr. Hamel that the Police and Fire Retirement Board recently received Mr. Hamel's information, and that this meeting was the first opportunity for the Board to address Mr. Hamel's concerns. Mr. Chris Lake, IAFF, addressed the Board regarding a member who is currently receiving a duty disability retirement. Mr. Lake discussed subpoenaed records that the union received due to a settlement case. Mr. Lake informed the Board that the duty disability retiree was approved for Duty Disability in 2006. The duty disability retiree was sent to be re-evaluated per the Board review's policy and the Police and Fire Retirement Ordinance. Mr. Lake believes that the medical director does not have the ability to change a duty designation to the non -duty. Mr. Lake believes that medical director can only determine if the retiree is incapacitated. Regular Meeting February 21, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Mr. Brian Epling, IAFF, provided additional information regarding the duty disability retiree. Mr. Epling believes that a change from a duty disability to non - duty disability would violate collective bargaining and the Police and Fire Retirement Ordinance. Mr. Epling stated that the duty disability retireee never requested a duty disability. Mr. Epling stated that there would be litigation the duty disability member's retirement was changed to non -duty. Trustee Benson stated that he believes that the Board will review the information and has always been fair. Trustee Benson expressed his concern that the presentation ended with a threat. Trustee Hecksel requested that the subpoenaed information regarding the member's duty disability retirement be forwarded to the retirement office. The retirement office will send the information to the Medical Director for his review. Mr. Benson was excused to leave the meeting Attorney Ken Lane distributed and reviewed the Police and Fire Outside Legal Counsel Policy. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Police and Fire Retirement Board Outside Legal Counsel Policy. This policy shall supersede any previous policy and be placed in the Trustee Handbook. Adopted by the following vote: 6 — 0 Attorney Lane stated that Police and Fire Retirement Ordinance have been provided to the unions represented in the Ordinance. The City Attorney's Office is waiting for the review of the Ordinance by the unions. Karen Williams reported that the Duty Disability income verifications were mailed out. The verifications are due April 30, 2012. Trustee Hecksel reported that the Disability subcommittee reviewed the medical director's report for Ms. Brenda Odom. The subcommittee has recommended that concurrence with the medical director for Ms. Odom to remain on duty disability. Regular Meeting February 21, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Hecksel and supported by Trustee Kraus to concur with Dr. Roth's recommendation for retirant Brenda Odom to remain on duty disability. Adopted by the following vote: 6 - 0 Trustee St. Aubin moved the Northern Trust updates item to the Joint Meeting for discussion. Mr. John Jackson updated the Police and Fire Retirement Board regarding Private Advisors. Asset Consulting Group has recommended that Board put on hold any additional investments to Private Advisors due to recently announced personnel changes within the firm. Trustee Wood distributed the management letter response to the City of Lansing audit for review by the Police and Fire Retirement Board. The Board inquired to the Retirement Office when the information for the Actuary report was provided to EFI. Ms. Karen Williams informed the Board that the Retirement Office provided membership data to the new actuary in September. The finance department provided financial data in October and November. Trustee St. Aubin moved the Pension software report to the Joint Meeting for discussion. Karen Williams distributed and reviewed the Investment and Securities Lending Reports for month ending January 31, 2012. Attorney Lane informed the Board that the Employees Retirement System Ordinance, provides a specific time frame for accumulated contributions to be paid back to the retirement system. The Police and Fire Retirement System Ordinance does not provide that provision. Attorney Lane inquired if the Police and Fire Board would like a policy developed to establish a similar time frame to re pay retirement contributions: Trustee Wood inquired about the legality of a Board policy versus the Police and Fire Retirement Ordinance. Attorney Lane opined that when an issue is not defined in the Ordinance, a policy adopted by the Board will be binding. The Board instructed Attorney Lane to proceed with drafting a Board policy regarding the repayment of retirement contributions. It was moved by Trustee Hecksel and supported by Trustee Oleson to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:15 am. Minutes approved on Angela Bennett, 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 Special Meeting Council Conference Room 10th Floor, City Hall Lansing, MI June 25, 2012 Monday, 12:00 -noon.., The Board met in special session and was called to order at 12:09 p.m -7 Present: Trustees Kraus, Munroe (12:14pm), Parker, Rose, Taylor, Woods — 6 Absent: Trustee Bernero, Dedic, McCaffery Others: Karen E. Williams, Angela Bennett, Finance Department. Trustee Rose presided and opened the meeting to public comments. There were no public comments Ms. Angela Bennett distributed and reviewed the accounting details regarding the request for reimbursement of $4.7 million to the general fund for Employees Retirement System operating expenses. It was moved by Trustee Kraus and supported by Trustee Parker to approve the $4.7 million from the Comerica to the General Fund to reimburse the City for Employee Retirement System accrued payroll liabilities, investment and contractual fees. Trustee Rose requested an explanation of the fiscal year 2011 and fiscal 2012 payroll tax liabilities. Ms. Bennett explained that the gross payroll liabilities included federal, state taxes and health care expenses. The end of Fiscal Year 2011 was not included in the last reimbursement. The current reimbursement request for $4.7 million will pay for FY 2011 and FY 2012 and make the Employees Retirement System current in payroll expenses. Trustee Taylor inquired regarding the time period the expenses for the investment managers were paid. Ms. Bennett explained that the investment manager and contractual fees were paid quarterly and during the same period of time as the payroll liabilities request. Trustee Wood requested to make comments regarding her feelings and serious concern regarding the whole reimbursement request process. Trustee Wood stated that the memo was received late in the process and indicated that reimbursement was for management fees. Trustee Wood expressed that the Police and Fire Board was led to believe that the reimbursement was for management fees and the time frame consisted of a couple of years. Trustee Wood stated that there was an insistence that the Board was aware of the total operating expenses in previous years. The minutes reflect quarterly withdrawals and did not indicate that there was a difference between the gross amount and net amount of retirement payments, income taxes or operating expenses. Trustee Wood stated that moving forward that the Boards should receive a clearer accounting of what is being paid and future cash withdrawals should handle the total gross amount of operating expenses. Trustee Wood added that if there is a deficit at the end of the period, that amount is clearly indicated in the future. Trustee Rose suggested that a policy be regarding monthly reports regarding operating expenses at that next meeting. Ms. Bennett indicated that she believed that she stated the reimbursement consisted of payroll liabilities in addition to management fees. Ms. Bennett also stated that she supports revisiting how retirement expenses are paid and reimbursed. Adopted by the following vote: 6-0. The meeting adjourned at 12:17 p.m. Minutes approved on Angela Bennett, Secretary Employees Retirement System Scott Dedic, Chairperson Employees Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting August 21, 2012 Council Conference Room Tuesday, 8:30 wiffill 10th Floor, City Hall Lansing, MI The Board was called to order at 8:39 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus , Oleson, St. Aubin, Wood 7. Absent: Trustee Bernero Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Chris Lake, IAFF, Steve Harry, citizen. It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement Board Meeting of July 17, 2012. Adopted by the following vote: 7- 0 It was moved by Trustee Wood and supported by Trustee Oleson to approve the Official Joint Minutes of the Employees Retirement System and the Police and Fire Retirement System Meeting of June 21, 2012. Adopted by the following vote: 7 — 0. Mr. Steve Harry inquired about getting a copy of the amended Police and Fire Retirement Ordinance. Trustee Wood stated that Council Staff will provide one to him. Mr. Chris Lake, IAFF, distributed prepared questions for EFI Actuaries regarding the Police and Fire Retirement Board's actuarial and experience report. Mr. Lake stated that in his efforts to understand the contribution increase and other items in actuarial reports, he contacted the International Union's pension resource department. Mr. Lake provided an overview of the questions he had regarding the Post Retirement Benefit adjustment, termination, disability and mortality rates. Mr. Lake had questions on longevity and pay increases and the effect on contribution level. Mr. Lake reviewed questions on the economic assumptions and amortization recommendation presented by EFI Actuaries. Trustee Fabus requested the information from the International Union from which the prepared questions were drafted. Regular Meeting August 21, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Secretary's Report. 0 new fire member(s), 0 new police members, 6 reinstatement(s), 1 refund(s), 0 transfers, 0 retired. Total: Active membership: 355. 2 death(s), Gary Lee Thomas, Fire, died 6/29/2012, age 76, spouse to 50%; William T. Martin, Jr., Police, died 7/21/2012, age 68, no beneficiary. Refunds made since the last regular meeting amounted to $7,143.75. Retirement allowances paid for the month of July, 2012 amounted to $2,103,591.13. Total retirement checks printed for the P&F System: 674. Total retirement checks printed for both systems: 1532. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Fabus inquired if the police members who were reinstated had repaid their withdrawn pension contributions. Ms. Williams indicated that there was 1 police officer who paid back pension contributions. Ms. Williams also indicated that not all of the police members withdrew their pension contributions. Trustee St. Aubin informed the Police and Fire Retirement Board that he sent out an email to members notifying them that if they wished to have their service credit restored, they must back their pension contributions withdrawn from the system. It was moved by Trustee Fabus and supported by Trustee Hecksel to approve the following application for Regular Age & Service Retirement: Philip W. Bailey, Police Department, 25 years of service of credits, age 50, effective August 16, 2012. (Purchased 7 months of service) Adopted by the following vote: 7 — 0. Ms. Williams reported to the Police and Fire Retirement Board that Applicant #2012-P0821 has requested consideration for Duty Disability. Trustee Kraus reported to the Police and Fire Retirement Board that the disability subcommittee met and recommends that Applicant #2012-P0821 be referred to the doctor. It was moved by Trustee Kraus and supported by Trustee Hecksel to referred applicant #2012-P0821 to the doctor under the updated disability application process. Adopted by the following vote: 7 -0. Ms. Williams reported to Police and Fire Retirement Board that Applicant #2012 — P0619, Applicant #2012-P0620, and Applicant #2012-F0621 had been seen by the Medical Director and that the subcommittee is waiting for the medical reports. There were no requests for Non Duty Disability Retirements. There were no requests for Non Duty Disability Retirements. Karen Williams, Retirement Office requested permission from the Police and Fire Retirement Board to attend the MAPERS Conference. It was moved by Trustee Oleson and supported by Trustee Benson to allow Karen Williams permission to attend the MAPERS Fall Conference and that the cost would be split between the Employees Retirement System and the Police and Fire Retirement System. Trustee Wood offered a friendly amendment that Ms. Williams provide a MAPERS Fall Conference Report. Adopted by the following vote: 7 — 0 The Police and Fire Retirement Board reviewed a letter provided by EFI Actuaries regarding recommendations for assumption changes. Trustee Hecksel inquired if there was a deadline to accept the recommendations for assumption changes. Trustee Hecksel requested that the questions provided by the IAFF Union be sent to EFI Actuaries for a response. It was moved by Trustee Hecksel and supported by Trustee Benson to submit the questions provided by the IAFF Union to EFI Actuaries for a response. Adopted by the following vote: 7 — 0 Trustee Wood and Trustee Fabus requested that EFI provide dollar amounts for the contributions changes listed in the letter. Trustee St. Aubin requested that members submit questions to the chair, and those questions will be forwarded to the actuary. Attorney Ken Lane provided an update for the Police and Fire Retirement Ordinance. The Ordinance has been submitted to City Council for review. Attorney Ken Lane also updated the Board regarding the Michigan Senate Bill 797 to amend Public Act 314. Attorney Lane provided a review of the draft policy regarding the repayment of accumulated contributions requested by the Retirement Office. Regular Meeting August 21, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Wood and supported by Trustee Oleson to approve the Accumulated Contributions Repayment form and Policy. The policy supersedes any accumulated contributions repayment form and policy and will be included in the Trustee Book. Adopted by the following vote: 7 — 0. Trustee Wood updated the Retirement Board regarding the process to approve the Police and Fire Retirement Ordinance. Trustee Wood indicated that the Ordinance was reviewed and discussed by Ways and Means Committee. The Public Hearing was set August 27, 2012 and the Ordinance should be passed by the end of September. Attorney Ken Lane reviewed the amended Disability Application Policy. He detailed the language in the letter of request for information and added that any cancellations fees are the responsibility of the disability applicant or retiree. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Disability Application Policy. The policy supersedes any Disability Application Policy and will be included in the Trustee Book. Adopted by the following vote: 7 - 0 Trustee Fabus inquired to legal counsel regarding the State of Michigan teachers retirement amendments and what implications that may have for public employees. Attorney Lane reviewed the state laws that protect collective bargaining of retirement benefits. Trustee St. Aubin reported that the disability subcommittee met regarding Ms. Sheryl Norton who was referred for a medical reexamination. The report has been received. During the process, Ms. Norton has converted to age and service retirement. Karen Williams reviewed the Quarterly Operating Expenses Report. It was moved by Trustee Hecksel and supported by Trustee Benson to adjourn the meeting. Adopted by the following vote: 7 — 0 The meeting adjourned at 9:10 am. Minutes approved on Angela Bennett, 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 City Council Conference Room 10th Floor, City Hall Lansing, MI August 23, 2012 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:38 a.m. Present: Kraus (8:39), McCaffery, Munroe, Parker, Rose, Taylor, Wood - 7 Absent: Trustee Bernero, Dedic Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). Trustee Rose presided. It was moved by Trustee Wood and supported by Trustee Parker to approve the Official Minutes of the Employees Retirement System Board Regular Meeting of July 19, 2012. ` Adopted by the following vote: 7 - 0 There were no public comments. Secretary=s Report. 0 new member(s), 0 reinstatement(s), 2 refund(s), 0 transfers, 3 retired. Total active membership: 386. Total deferred: 67. Refunds made since the last regular meeting amounted to $7,129.65. Retirement allowances paid for the month of July 2012, amounted to $1,726,690.35. Total retirement checks printed for the ERS System: 858. 2 death(s). Ann L. Brooks, died 7/13/2012, (Parks/Exempt, retired 3/1/1977), age 88, no beneficiary; Julius Scott, died 7/31/2012, (Parks/UAW, retired 3/1/1991), age 86, beneficiary to receive 50%. Eligible domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no requests for Regular Age & Service Retirement. Karen Williams updated the Retirement Board regarding the Duty Disability applications. Ms. Williams reported that the medical report for Applicant #2012-E0419 and Applicant #2012-E0517 had been received from the Medical Director. Ms. Williams reported that Applicant #2012-E0719 is pending, waiting for requested information. Employees Retirement System Regular Meeting of August 23, 2012 Page 2 It was moved by Trustee Wood and supported by Trustee Parker to recess the Retirement Board meeting to allow the disability subcommittee to meet regarding duty disability applicants. Adopted by the following vote: 7 — 0. The Board meeting recessed 8:42. The Board meeting resumed at 8:58 a.m. Trustee Taylor reported to 'the Board that the disability subcommittee met and recommended that the Board concur with the Medical Director's Report to deny duty disability for Applicant #2012-E0419 and Applicant #2012-E0719. Trustee Taylor stated that Applicant #2012-E0719 can reapply for non duty disability. It was moved by Trustee Kraus and supported by Trustee Wood to deny the duty disability retirement of Applicant #2012-E-0419 and Applicant #2012-E0719 based on the Medical Director's reports and the recommendations of the disability subcommittee. Adopted by the following vote: 7 -0 There were no requests for non -duty disability retirement. There were no requests for refunds of accumulated contributions. It was moved by Trustee Kraus and supported by Trustee Taylor to excuse Trustee Scott Dedic from the Employees Retirement Board's August Meeting. Adopted by the following vote: 7 — 0. Karen Williams requested permission to attend the MAPERS Fall Conference. It was moved by Trustee Kraus and supported by Trustee Munroe to allow Karen Williams permission to attend the MAPERS Fall Conference and that the cost would be split between the Employees Retirement System and the Police and Fire Retirement System. Trustee Wood offered a friendly amendment that Ms. Williams provide a MAPERS Fall Conference Report. Adopted by the following vote: 7 — 0. Trustee Rose suggested that members review the EFI letter detailing recommendations for assumption changes and submit questions to Scott Dedic through the retirement office. Those questions would be provided to the actuary for response. Employees Retirement System Regular Meeting of August 23, 2012 Page 3 Attorney Ken Lane reported to the ERS Board that the Police and Fire Board received a similar letter from EFI. Trustees were asked to forward questions for EFI through the chair. Attorney Lane also reported that IAFF union provided a list of questions and requested it to be forwarded to the actuary through the chairperson. Trustee Rose inquired if the Board needs to meet jointly to review and/or make a determination regarding EFI assumptions. Attorney Lane stated that the Boards did not need to meet jointly to determine their decisions on the EFI recommendations. Trustee Parker requested that EFI provide proposed dollar amounts rather than percentages regarding their recommendations impact for the Board's review. Trustee Rose suggested that questions be sent for the actuary within the next two weeks. Attorney Lane provided an update on the ERS Ordinance. Attorney Lane stated that the recent legal counsel opinions provided to the Board are being incorporated into the Ordinance. Attorney Lane updated the Board that SB 797 to amend PA 314 is moving forward. Attorney Lane also reviewed with the Board the EVIP Revenue Sharing legislation and how it impacts employee compensation. Attorney Lane informed the Board that I he received a request from the chairperson through the Retirement Office to amend the Credit Card Policy to allow other trustees have a credit card. The current policy only allows the chair and vice chair to have a Board credit card. Trustee Wood suggested that the Retirement Office keep the cards issued to Trustees until there is a conference or need for travel. Attorney Kraus expressed concern that Retirement Office would have additional responsibility to review all the credit card,'statements, receipts and authorize payments. Attorney Kraus stated that she used her personal credit card at conferences and was reimbursed. Trustee Munroe suggested that credit card limit be raised for the Retirement Office Board credit cards. Members could then go to the Retirement Office to make travel arrangements. It was moved by Trustee McCaffery and''supported by Trustee Wood to maintain the current Credit Card Policy. Trustee Wood made a friendly amendment that a member may submit a written request for a credit card to the Board for approval. Employees Retirement System Regular Meeting of August 23, 2012 Page 4 Trustee Wood expressed concern that when members arrive at a hotel, they are asked for a credit card. Trustee Wood expressed that everyone may not have access to a credit card. Trustee Taylor stated that she has used her procurement card for Board travel expenses and the funds are transferred from the appropriate account to pay those expenses. The Board discussed whether the City procurement card can be used for Retirement Board travel. Trustee Wood stated that she understands the use of the card for trustees who are required by Ordinance to be on the Retirement Board. Adopted by the following vote: 7 — 0. Ms. Angela Bennett updated the Employees Retirement System Board regarding the 911 Center Transfer. The City of Lansing and Ingham County are negotiating a date for the transfer, so the market values can be determined. Ms. Bennett indicated that EFI has reviewed the Gabriel Roeder and Smith report, and are waiting on market values. Attorney Ken Lane opined that under the state legislation, the Employees Retirement Board would need to review the Actuarial supplemental Report at least seven days before a transfer of funds. Trustee Mark Parker has contacted Trustee Rob Oleson of the Police and Fire Retirement System to discuss possible dates for a Retirement Conference. Karen Williams reviewed the Quarterly Operating Expenses and Securities Lending report for the period ending June 2012. Trustee Rose suggested that members. review the Quarterly Operating Expenses Report and provide their recommendations to the retirement office. The meeting adjourned at 9:38 a.m. Minutes approved on Robert Rose, Vice Chairperson Employees' Retirement System Angela Bennett, Secretary Employees= Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES= RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI December 13, 2012 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:35 a.m. Present.- Dedic (8:42), Kraus, McCaffery, Munroe, Parker, Rose, Taylor, Wood - 7 Absent: Trustee Bernero, Taylor Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). Trustee Rose presided over the proceeding. It was moved by Trustee McCaffery and supported by Trustee Munroe to approve the Official Minutes of the Employees Retirement System Boards Regular Meeting of November 8, 2012. r' Adopted by the following vote: 6 - 0 It was moved by Trustee McCaffery and supported by Trustee Parker to approve '#lie r Official Minutes of the Joint Employees Retirement System Board and the Police a.d :f Fire Retirement Board Regular Meeting of November 8, 2012. Adopted by the following vote: 6 -0. There were no public comments. Secretary=s Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 369. Total deferred: 67. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of November 2012, amounted to $1,724,833.92. Total retirement checks printed for the ERS System: 856. 3 death(s). Alice M. Schumacher, died 11/17/2012, (Police-Civilian)/Teamster 580, retired 8/13/1988), age 79, no beneficiary; Donna Graves, died 11/10/2012, age 79, spouse of Exempt retiree; Alice L. Weeks, died 9/26/2012, age 85, spouse of Exempt retiree. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 1. Employees Retirement System Regular Meeting of December 13, 2012 Page 2 It was moved by Trustee Wood and supported by Trustee Taylor to approve the Request for Regular Age and Service Retirement: Thomas R. Vankuiken (Public Service/T580) — 31 years, 3 months of service credits, age 56, effective November 24, 2012. Adopted by the following vote: 6 - 0 It was moved by Trustee Wood and supported by Trustee Taylor to approve the Request for Regular Age and Service Retirement: Carol Ballard, (District Court/Teamster) — 26 years, 7 months of service credits, age 61, effective December 1, 2012 Adopted by the following vote: 6- 0 It was moved by Trustee Kraus and supported by Trustee Munroe to approve the Request for Regular Age and Service Retirement: Robert Childs (Public Service/UAW) — 16 years, 11 months of service credits, age 58, effective December 1, 2012. (From Deferred) Adopted by the following vote: 6 — 0 It was moved by Trustee Wood and supported by Trustee Parker to approve the Request for Regular Age and Service Retirement.- Dawn etirement: Dawn R. Hufnagel (Police-Civilian/Teamster 580) — 23 years, 11 months of service credits, age 44, effective December 1, 2012 (Old Plan — 65 points) Adopted by the following vote: 6 — 0 It was moved by Trustee Parker and supported by Trustee Taylor to approve the Request for Regular Age and Service Retirement: James W. McCue (Public Service/T214) — 18 years, 4 months of service credits, age 58, effective December 1, 2012 (From Deferred) Adopted by the following vote: 6 — 0 Ms. Williams reported to the Employees Retirement System Board that applicant #2012- E1213 has requested a duty disability retirement. Trustee Rose referred applicant #2012-E1213 to the disability subcommittee. The Disability subcommittee requested a recess to review the duty disability application. Employees Retirement System Regular Meeting of December 13, 2012 Page 3 It was moved by Trustee Parker and supported by Trustee Munroe to recess the Employees Retirement System meeting to allow the disability subcommittee to meet. Adopted by the following vote: 6 — 0 The ERS Board recessed at 8:42 a.m. The ERS Board resumed at 8:46 a.m. Karen Williams updated the Retirement Board regarding the Duty Disability applications. Ms. Williams reported that the disability subcommittee met and has referred applicant #2012-E1213 to the Medical Doctor. Ms. Williams reported that applicant #2012-E1018 and Applicant #2102-E0719 has been scheduled to see the Medical Director. There were no requests for non -duty disability retirements. There were no requests for refunds of accumulated contributions. Trustee Carol Munroe provided a report on her attendance to the annual IFEBP Conference. Trustee Munroe reviewed the sessions that she attended regarding trustee responsibility, fiscal crisis and its effect on pension systems. Trustee Munroe discussed that she had the opportunity to network with other pension plans trustees, and she learned information regarding asset diversification and the health of other pension plans. Trustee Terri Taylor provided a report of her attendance to the annual IFEBP Conference. Trustee Taylor attended the Employee Benefit sessions that included the impact on affordable care act. Trustee Dedic provided a report of his attendance to the annual IFEBP Conference. Trustee Dedic discussed the session and informed the ERS Board that many of the workshops resources and material are available on the IFEBP website. Trustees received memory sticks with conference materials. Trustee Dedic informed the Board of the NIRS.com website that also provided additional resources on public plans. Attorney Ken Lane informed the Employees Retirement Board that he had an attorney- client legal opinion that he wished to review with the Board regarding the Draft Actuarial Report. It was moved by Trustee Wood and supported by Trustee Kraus to move the Draft Actuarial Report up on the agenda, and close session to review a legal opinion from the City Attorney's Office regarding the actuarial report. Adopted by the following vote: 7-0 Yes: Dedic, Kraus, McCaffery, Munroe, Park, Taylor, Rose No: 0 Employees Retirement System Regular Meeting of December 13, 2012 Page 4 The Employees Retirement System Board closed 8:52 a.m. The Employees Retirement System Board resumed 9:16 a.m. It was moved by Trustee Rose, and supported by Trustee Munroe, that based on legal review, the Employees Retirement System Board reconsider and rescind the motion to approve the funding policy made at the November meeting, and that the policy and will be reviewed at the next Joint meeting in January. Trustee Wood offered a friendly amendment that was accepted to state the Board would review the policy at a future meeting. Adopted by the following vote: 6 -0 It was moved by Trustee Kraus and supported by Trustee Parker to have a Special January 2013 joint meeting with the Police and Fire Retirement System Board to discuss the actuary's experience study, actuary report and funding policy. Adopted by the following vote: 6 -0 Ms. Keri Hepburn and Mr. Douglas J. Gooding presented a performance review of Invesco International Equity Investment. Ms. Hepburn provided an overview of the presentation. Mr. Gooding reviewed the Invesco Global Equity Team, Investment Process and Investment Philosophy. Mr. Gooding discussed the portfolio performance and the assets within the strategy compared to the Index. Mr. Gooding provided how individual stocks contributed to performance, trade analysis and the investment's top 10 stock holdings. Mr. Gooding outlined the sector allocation, regional allocation and country allocation of the portfolio's holding. Ms. Keri Hepburn provided a performance summary and reviewed the Invesco Mortgage Recovery investment. Ms. Hepburn requested a copy of the ERS Board's monthly report on the Invesco Mortgage Recovery Investment. She informed the Board that she will review the information and report back to Trustees. Attorney Kenneth Lane updated the Retirement Board regarding the state legislature changes to PA314. Attorney Lane provided a legislative memo of Public Act 347 that summarized the provisions of the new amendments to Public Act 314. Attorney Lane stated the provisions will go into effect in March. Attorney Lane provided and reviewed updates to the Trustee Handbooks. Attorney Lane updated the Board regarding the Retirement Ordinance update to include the new changes to Teamster 214 contract. Ms. Karen Williams reported that the 911 Operators retirement funds have not been transferred. Trustee Parker reported that Retirement Conference will be Thursday, September 12, 2013 at the Lansing Center. Trustee Parker distributed a proposal from the Lansing Center for the rental of rooms. Trustee Parker suggested an initial budget of $5,000 to split between the Retirement Boards. It was moved by Trustee Rose and supported by Trustee Parker to allocate $2500 from the Employees Retirement System administrative account for the 2013 Retirement Conference. Adopted by the following vote: 6 -0 Trustee Parker spoke with the Police and Fire Retirement System and Trustees Fabus, Trustee St. Aubin and Trustee Hecksel have indicated interest in assisting with the Conference. Trustee Rose reported that Phase I of the Pension Software project has been completed. The invoice for the completion was $18,180. This amount will be split between both Retirement Boards. Trustee Rose reported that Phase II will deal with data migration to the Arrivos System. Trustee Rose also requested Tegrit provide 3 options for death check software and another vendor. Karen Williams distributed and reviewed the Securities Lending Report for the month of November, 2012. The meeting adjourned at 10:13 a.m. Minutes approved on Angela Bennett, Secretary Employees= Retirement System Scott Dedic, Chair Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting December 18, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:31 a.m. Present: Trustees Benson, Fabus (8:41), Hecksel, Kraus, Oleson, St. Aubin, Wood— 7. Absent: Trustee Bernero, Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement Board Meeting of November 6, 2012. Adopted by the following vote: 6 — 0 Trustee St. Aubin requested updates for the Arrivos Pension Software and the Retirement Conference. Mr. Robert Rose presented the Arrivos Pension Softwel e Update. Mr. Rose discussed the data collection process from the city's system to pension software. Mr. Rose updated the Board on proposals regarding :a.dea-h`-'; check project. Mr. Parker discussed the Retirement Conference. A date of September 12_; 20'1=2 tt at the Lansing Center has been selected. The Retirement Board discussed havia)� lifeline screenings. Mr. Parker requested an initial budget of $2500 per Retiremep.t, Board. It was moved by Trustee Oleson and supported by Trustee Kraus to approve a budget of $2,500 for the Retirement Conference. Adopted by the following vote: 6 — 0. It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Joint Police and Fire Retirement System and the Employees Retirement System Board Meeting of November 8, 2012. Adopted by the following vote: 6 — 0 Regular Meeting December 18, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two 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: 349. 3 death(s), Robert Burghdoff, Fire, died 11/3/2012, age 77, beneficiary to receive 50%; Thomas E. Bolan, Police, died 11/15/2012, age 72, no surviving beneficiary; Joan McNamara, died 10/27/2012, age 81, spouse of Fire retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $7,537.56. Retirement allowances paid for the month of November, 2012 amounted to $2,118,910.05. Total retirement checks printed for the P&F System: 675. Total retirement checks printed for both systems: 1529. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve following application for regular age & service retirement: Daniel J. Thomas, Fire Department, 25 years of service credits, age 50, effective November 16, 2012. (purchased 2 years of military service credits) Mark Hufnagel, Fire Department, 25 years of service credits, age 46 effective December 16, 2012 (purchased 23 months of military service credits) Adopted by the following vote: 6 — 0. Trustee Kraus reported to the Police and Fire Retirement Board that disability subcommittee had met and reviewed the medical report for applicant #2012- P0821. The subcommittee recommended that the Board concur with the Medical director to grant a duty disability retirement. It was moved by Trustee Kraus and supported by Trustee Hecksel to concur with the Medical Director's report and approve the duty disability for applicant #2012- P0821 Trustee Fabus requested to view the Medical Director's report. Attorney Ken Lane opined that members could go into closed session to discuss the Medical Director's report. All distributed reports were returned to the retirement analyst Adopted by the following vote: 7 -0. There were no requests for Non Duty Disability Retirements. Regular Meeting December 18, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three There were no Requests for Refund of Accumulated Contribution Trustee Oleson provided a report of the annual IFEBP Conference. Trustee Oleson attended sessions regarding trends in asset management, hybrid plans, health care classes dealing with the affordable health care act. Karen Williams reported that the Employees Retirement System Board met to review the funding policy proposed in the actuarial valuation. Legal counsel reviewed the policy and opined that it could not be implemented, as presented. The Employees Retirement System .Board requested a joint meeting with the Police and Fire Retirement Board to review the actuarial valuation and funding policy with EFI. It was moved by Trustee Wood and supported by Trustee Oleson to go into closed session to review an attorney-client issue and opinion regarding the actuarial valuation. Adopted by the following roll call vote: 7-0 Yes: Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood. No: 0 Session closed at 8:51 a.m. The session resumed 9:10 am It was moved by Trustee Wood and supported by Trustee Benson to rescind the Police and Fire Retirement Board's action regarding the adoption of the actuarial funding policy at the November 6, 2012 meeting. It was further moved that the Police and Fire Board will hold a Joint Meeting with the Employees Retirement Board to discuss the actuary report and funding policy with EFI actuaries, based on legal counsel review. Adopted by the following vote: 7 - 0 Attorney Ken Lane distributed and reviewed the written military service purchase policy. It was moved by Trustee Oleson and supported by Trustee Benson to adopt the Military Service Purchase policy and that the policy is added to the trustee book. Trustee Wood offered a friendly amendment supported by Trustee Benson that the policy be implemented into the Police and Fire Retirement Ordinance. Adopted by the following vote: 7 -0 Regular Meeting December 18, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three There were no Requests for Refund of Accumulated Contribution. Trustee Oleson provided a report of the annual IFEBP Conference. Trustee Oleson attended sessions regarding trends in asset management, hybrid plans, health care classes dealing with the affordable health care act. Karen Williams reported that the Employees Retirement System Board met to review the funding policy proposed in the actuarial valuation. Legal counsel reviewed the policy and opined that it could not be implemented, as presented. The Employees Retirement System .Board requested a joint meeting with the Police and Fire Retirement Board to review the actuarial valuation and funding policy with EFI. It was moved by Trustee Wood and supported by Trustee Oleson to go into closed session to review an attorney-client issue and opinion regarding the actuarial valuation. Adopted by the following roll call vote: 7-0 Yes: Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood. No: 0 Session closed at 8:51 a.m. The session resumed 9:10 am It was moved by Trustee Wood and supported by Trustee Benson to rescind the Police and Fire Retirement Board's action regarding the adoption of the actuarial funding policy at the November 6, 2012 meeting. It was further moved that the Police and Fire Board will hold a Joint Meeting with the Employees Retirement Board to discuss the actuary report and funding policy with EFI actuaries, based on legal counsel review. Adopted by the following vote: 7 - 0 Attorney Ken Lane distributed and reviewed the written military service purchase policy. It was moved by Trustee Oleson and supported by Trustee Benson to adopt the Military Service Purchase policy and that the policy is added to the trustee book. Trustee Wood offered a friendly amendment supported by Trustee Benson that the policy be implemented into the Police and Fire Retirement Ordinance. Adopted by the following vote: 7 -0 Attorney Lane distributed and reviewed a legislative update summarizes the amendments to PA 347. The memo discussed transparency, hiring of necessary services, "Pay to Play", Investment limitation amendments and Board member removal. Attorney Lane informed the Police and Fire Retirement Board that he was contact by a LEAP representative who wanted to address the Board regarding an investment opportunity. Trustee St. Aubin referred the LEAP request to Asset Consulting Group. Karen Williams distributed a memo regarding the election of the Police Trustee to the Police and Fire Retirement Board. The deadline for turning in nominating petitions for the term of office ending December 31, 2014 was November 15, 2012. The Retirement Office received one petition from Brad St. Aubin. Ms. Williams informed the Board that Mr. St. Aubin had filed a valid petition and was running unopposed. Mr. St. Aubin was declared the winner for the office of Police Department Trustee. It was moved by Trustee Wood and supported by Trustee Oleson to approve the nominating petition and confirm Brad St. Aubin as Police Department Trustee to the Police and Fire Retirement Board. Adopted by the following vote: 7 — 0. Trustee St. Aubin reported to the Police and Fire Board that Mr. Greg Stump was leaving EFI Actuaries to move to another actuary firm. Trustee St. Aubin also informed the Board that EFI has plans to merge with another company. The Police and Fire Retirement Board discussed options regarding the upcorning changes. Karen Williams reviewed the Investment and Securities Lending Report for the month of November 2012. The meeting adjourned at 9:54 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System