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HomeMy WebLinkAbout2013 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EIVIPLOYEES- RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI January 17, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:39 a.m. Present: Dedic (9:16), Kraus, McCaffery, Munroe, Parker, Rose, Wood - 7 Absent: Trustee Bernero, Taylor Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). r� Trustee Rose presided over the proceeding. - It was moved by Trustee Kraus and supported by Trustee Wood to approve the'.Official Minutes of the Employees Retirement System Boards Regular Meeting of DecemrbVer '-7'-- 13,2012. - 13, 2012. ( `i Adopted by the following vote: 6 - 0-.a r` J There were no public comments. Secretary=s Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 4 retired. Total active membership: 361. Total deferred: 68. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of December 2012, amounted to $1,729,334.50. Total retirement checks printed for the ERS System: 859. 1 death(s). Clark A. Meyers, died 1/4/2013, (Parks/UAW, retired 1/3/1990), age 88, no beneficiary. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 1. It was moved by Trustee Wood and supported by Trustee McCaffery to approve the Request for Regular Age and Service Retirement: Marsha L. Scott, (Parks/UAW) - 20 years, 4 months of service credits, age 58, effective December 19, 2012 Rosie L. Taylor (Planning/UAW) - 27 years, 1 month of service credits, age 50, effective December 19, 2012. Cynthia A. Currie (Police-Civilian/FOP 911) - 14 years, 9 months of service credits, age 58, effective January 1, 2013. (From Deferred) Gregory G. Klco (Public Service/Teamster) - 34 years, 4 months of service credits, age 56, effective January 18, 2013. Employees Retirement System Regular Meeting of January 17, 2013 Page 2 It was moved by Trustee Wood and supported by Trustee McCaffery to approve the Request for Regular Age and Service Retirement (continued): Marichand Neves, (Public Service/Teamster) — 25 years, 4 months of service credits, age 51, effective January 18, 2013. Brian Sipperley (Public Service/Teamster) — 30 years, 9 months of service credits, age 50, effective January 19, 2013. Thomas A. Wendt (Finance/Teamster) — 14 years of service credits, age 65, effective ,January 23, 2013 (purchase 2 years, 8 months of universal buy -in of time) Joseph Diaz (Police-Civilian/FOP 911) — 22 years, 7 months of service credits, age 42 years, 5 months, effective January 26, 2013 (Purchased 1 month of universal buy in of time)(Old Plan — 65 points) Thomas J. Blanc (Public Service/Teamster) — 18 years, 8 months of service credits, age 48, effective January 1, 2013 (From Deferred, 65 points) Adopted by the following vote: 6 — 0. Ms. Williams reported to the Employees Retirement System Board that applicant #2012- E1213 is pending, waiting for the medical release For information. It was moved by Trustee Wood and supported by Trustee Kraus to recess the Employees Retirement Systern to allow the disability subcommittee to meet to review the Medical Director reports for Applicant #2012-E1018 and Applicant #2012-E0719. Adopted by the following vote: 6 — 0 The meeting recessed at 8:45 a.m. The meeting reconvened at 8:48 a.m. Trustee Kraus reported that the disability subcommittee met and reviewed the Medical Director reports for Applicant #2012-E1018 and Applicant #2012-E0719. Trustee Kraus reported that the subcommittee recornmends concurrence with the medical director to approve duty disability for both applicants. It was moved by Trustee Wood and supported by Trustee Kraus to approve the duty disability of Applicant #2012-E1018 and Applicant #2012-E0719 Attorney Ken Lane reviewed the policy and opined that Trustees could review the medical reports but not discuss or divulge the names of applicants until the Board votes on the applications. Trustee Rose requested that the Board go into closed session to discuss the medical reports from Dr. Roth. Employees Retirement System Regular Meeting of January 17, 2013 Page 3 It was moved by Trustee Wood and supported by Trustee Kraus to go into closed session to discuss the medical opinions from Dr. Roth. Adopted by the following vote: 6 -0 Yes: Kraus, McCaffery, Munroe, Parker, Rose, Wood No: 0 The Board met in closed session at 8:50 a.m. The Board returned to open session at 8:58 a.m. The motion to approve the duty disability requests from applicant #2012-E1213 and applicant #2012-E0719. Adopted by the following vote: 6 — 0. There were no requests for Non -Duty Disability Retirement. Karen Williams reported that there was one request for a refund of accumulated contributions from Mr. Kevin B. Reeves of $22,799.36. He was a member of the City Clerk's Office, under the Mayor/Council Staff and he was not vested. It was moved by Trustee Kraus and supported by Trustee Parker to approve the following request for Refund of Accumulated Contribution: Kevin B. Reeves, City Clerk's Office/Mayor/Council Staff, $22,799.36 Adopted by the following vote: 6 -0. Karen Williams reported that Trustee Terri Taylor had contacted the Retirement Office that she would not be at the ERS meeting. Trustee Parker reported that Trustee Scott Dedic requested an excuse for the meeting because he was delayed at the City Financial Health meeting. It was moved by Trustee Parker and supported by Trustee Wood to excuse Trustee Dedic from the Employees Retirement System January Board Meeting. Adopted by the following vote: 6 - 0 Karen Williams reported that there was a MAPERS One -Day conference scheduled for February 8. The MAPERS Spring Conference at Shanty Creek was scheduled for May 19-21. Employees Retirement System Regular Meeting of January 17, 2013 Page 4 It was moved by Trustee Wood and supported by Trustee Kraus to nominate, closed nominations and elect Trustee Scott Dedic as chairperson and Trustee Robert Rose as vice chairperson. Adopted by the following vote: 6 - 0 The Employees Retirement System Board approved the following 2013 subcommittees: Disability Committee: Kraus, Taylor, Wood Investment Committee: Kraus, McCaffery, Parker, Rose, Taylor, Wood Education Committee: Dedic Parker, Munroe, Rose Ordinance Changes Committee/ Special Projects: Kraus, Rose, Munroe, Wood Joint Ad Hoc Committee On Health Care: Dedic, Parker, Rose, Wood Outside Legal Services: Dedic, Parker, Taylor, Wood Attorney Ken Lane provided an update of the Employees Retirement Systern Ordinance. The City Attorney Office is waiting to incorporate the recent contract changes to Teamster 214 in the Ordinance. Attorney Lane will provide an updated version of the Retirement Ordinance for Board review. Attorney Lane also reviewed the amendments to the Open Meeting Act to place the meeting schedule on the website and the new rules on posting meeting notices. The 18 hour regulations are only for business hours. Attorney Ken Lane will provide a review of the changes of Public Act 314 and what is required for the website at next meeting. Karen Williams requested that she is working to update the Retirement website. She recommended that a subcommittee or Trustee be available or appointed to approve additions or modifications to the website. Karen Williams provided a sample of the new Asset Consulting Group streamlined quarterly reports. It was moved by Trustee Wood and supported by Trustee Parker to accept the modification to the Asset Consulting Group quarterly reports. Adopted by the following vote: 6 -0. Karen Williams distributed a memo from Asset Consulting Group recommending that no action be taken regarding changes to Northern Trust Security Lending account. Northern Trust was modifying the Securities Lending Program regarding the way non- cash collateral is held for participants. Employees Retirement System Regular Meeting of January 17, 2013 Page 5 It was moved by Trustee Kraus and supported by Trustee Munroe to accept the recommendation from Asset Consulting Group regarding no further action to the Northern Trust Security Lending account. Adopted by the following vote: 6 — 0. Ms. Karen Williams reported that the 911 Operators retirement funds have not been transferred. Trustee Wood indicated that the Retirement Board has not seen the actuarial report and that funds could not be transferred until the Board's review and recommendation to City Council. Trustee Wood reported that two actuarial reports were completed, one by Ingham County and one by EFI. There has not been any progress pass this point. Attorney Ken Lane provided a review of Public Act 314's requirement that the Board review the actuarial report. Trustee Parker requested a progress report from Angela Bennett regarding the actuarial valuation of the 911 Center transfer. Trustee Dedic inquired about the effect of Ingham County contract negotiations with the 911 employees and what impact that would have on the transfer of funds. It was moved by Trustee Parker and supported by Trustee Munroe to request a progress report from EFI regarding the actuarial valuation. Trustee Munroe offered a friendly amendment accepted by Trustee Parker to request a progress report frorn the City Attorney's Office. Adopted by the following vote: 7 — 0 Trustee Parker provided an update for Retirement Conference to be held Thursday, September 12, 2013 at the Lansing Center. Trustee Parker requested the Board's approval to add health care screenings to the Conference. Trustee Parker requested a budget of $10,000 for the health care screenings. It was moved by Trustee Wood and supported by Trustee Parker to add health care screening to the 2013 Retirement Conference and to allocate $10,000 budget from Board's administrative account. Trustee Kraus offered a friendly amendment that was accepted by Trustee Wood to share the cost of the health screening budget with the Police and Fire Retirement System. Adopted by the following vote: 7 -0 Trustee Parker also requested suggestions for speakers for the conference. Trustee Rose reported that Pension Software project is moving into Phase II, data extraction and migration. Trustee Rose informed the Board that the Retirement System uses information from paper records, the old mainframe and the IFAS payroll system. Trustee Rose stated that Tegrit is working with Finance and Retirement Staff to integrate these records into the Arrivos software. Karen Williams distributed and reviewed the Securities Lending Report for the month of December, 2012. Trustee Scott Dedic reviewed the City Financial Health Care Team and announced that a Public Hearing would be January 31, 2013 at 7:00 a.m. at Harry Hill Center. The meeting adjourned at 10:37a.m. Minutes approved on Angela Bennett, Secretary Employees= Retirement System Scott Dedic, Chair Employees' Retirement System CITY OF LANSING SPECIAL JOINT POLICE & FIRE and EMPLOYEES RETIREMENT SYSTEM MINUTES Joint Meeting January 15, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 8:40 a.m. , A quorum of the Police and Fire Retirement Board and the Employees Retireryt&t Board was present. Trustees present: (Police & Fire), Benson, Fabus, Hecksel, Kraus, St. Aubin, Wood 6. (ERS), Dedic (9:20), Kraus, Munroe, Parker, Rose, Wood — 6. Other presents: Michael J. Noble, Cheiron, Karen Earley, EFI/Cheiron, Greg Stump, Boomershine; Karen Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office). Mr. Michael J. Noble, Cheiron, provided an overview of the merger between EFI and Cheiron. Mr. Noble informed that Cheiron and EFI merged as of January 1, 2013. Mr. Noble stated that the owner of EFI was retiring and looking to merge with another company. Mr. Noble provided a history of Cheiron, who have been in business for ten years. The business has grown to 90 people and offices throughout the country. Cheiron specializes in multiemployer public plans. Mr. Noble stated that Cheiron would bring more resources regarding health care, risk analysis to the Retirement Boards. Mr. Noble stated that the contract or fee that EFI has with the Board will not change. Trustee Rose inquired about the new structure of the merged company. Mr. Noble stated that Cheiron takes that the company does take a dual actuary approach. Mr. Noble indicated that there will be two consultants working with clients. Mr. Noble will be working with Karen Earley with the Lansing Retirement Board. Trustee St. Aubin inquired about the timing of the merger and indicated the Board was informed of the possible merger. Mr. Noble stated that EFI had been looking for another firm for months, but Cheiron did not begin merger discussions until late November, December. Cheiron would be the governing body. Mr. Gregory Stump stated that he was at the Board meetings to give background and he agreed that the merger discussion with Cheiron were within the last month. Joint Meeting Council Conference Room 10th Floor City Hall Lansing, MI January 15, 2013 Tuesday, 9:15 a.m. Page 2 Ms. Karen Earley discussed the Actuarial valuation as of December 31, 2011. Several changes in assumptions and methods were recommended in the Experience Study for the plans. The Boards of each system had agreed to a strategy, proposed by EFI, to increase the City's contribution to each by 10% per year until the full actuarial cost was reached. However, upon legal review it was found that this approach did not satisfy state law, which requires that no less than the actuarial cost be contributed each year. Trustee Hecksel explained that the Retirement Boards wanted to phase-in the impact of the assumption changes for the City. Trustee Hecksel stated that the Boards wanted to make the changes as predictable and incremental as possible while still maintaining its fiduciary responsibility. Mr. Mike Noble provided an explanation of the alternate strategy that would allow graduate implementation of the recommended assumption changes, while allowing the full actuarial cost to be contributed to each fund. The new assumed inflation rate would be 3.3% and the assumed investment return would be 7.8%. Attorney Ken Lane reviewed the minutes of the last several Board minutes and provided a background of the Retirement Board's action. Attorney Lane stated that he believed that the City provided a partial contribution based upon the rates in place prior to the Experience Study recommendations. At this time, the Experience Study recommendations or the Actuarial valuation has not been accepted by the Board. Attorney Lane inquired about the timeline of approval of these recommendations and the actuary report. Ms. Angela Bennett reported that the City's partial contribution was based on the prior year's actuarial valuation. The remainder of the contribution will be made upon the Board's approval of the recommendations and the actuarial valuation. The valuation is needed to build the actuarial required contribution (ARC) payment. The payment would be due before the end of the City's fiscal year in July. Attorney Ken Lane opined that state law indicates that the City must contribute what the actuarial valuation states in the Report. Ms. Angela Bennett inquired if the remainder of the experience study recommendations were implemented in the actuarial report. Mr. Gregory Stump confirmed that all of the actuarial assumptions were implemented at 100% with only amendments to the assumed inflation and assumed investment return. Mr. Stump reviewed that he worked with Ms. Earley to provide an alternative that would allow the gradual implementation of the recommended assumption changes, will allowing the full actual cost to be contributed to each fund. Joint Meeting Council Conference Room 10th Floor City Hall Lansing, MI January 15, 2013 Tuesday, 9:15 a.m. Page 3 Mr. Michael Noble discussed the impact of varying inflation rates and investment returns on actuarial results. The actuary report also recommended that the Retirement Boards should review the economic assumptions each year. Ms. Karen Earley reviewed the recommendation for both Boards to approve a closed amortization for the retirement plans. Mr. Noble discussed how the closed amortization will improve funding for the plans. It was moved by Trustee Hecksel and moved by Trustee Kraus to adopt the actuarial valuation recommendation by Cheiron/EFI to change the assumed inflation rate to 3.3%, the assumed investment return to 7.8%, and change the 30 -year open amortization to 30 -year closed amortization. Trustee Wood offered a friendly amendment accepted by Trustee Hecksel to also include the adoption of the remainder of the Experience Study recommendations that include termination, disability and mortality rates. Adopted by the following vote: 6 - 0 It was moved by Trustee Rose and supported by Trustee Wood to adopt the actuarial valuation recommendation by Cheiron/EFI to change the assumed inflation rate to. 3.3%, the assumed investment return to 7.8%, change the amortization from 30 year open to 30 year closed, and approve the remainder of the Experience Study recommendation as of the valuation date December 31, 2011. Adopted by the following vote: 6 — 0. Mr. Michael Noble discussed that Cheiron had other municipalities throughout the Midwest, but no clients in Michigan. Mr. Noble suggested that the Boards should review the new GASB changes with the Actuary in the coming months. The Meeting adjourned at 9:53 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Employees Retirement System Brad St. Aubin, Chairperson Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting January 15, 2013 Council Conference Room Tuesday, 9:30 a.m. 10th Floor, City Hall Lansing, MI N The Board was called to order at 10:04 a.m. 7 a_J Present: Trustees Benson, Fabus, Hecksel, Kraus, St. Aubin, Wood — 6. Absent: Trustee Bernero-`' Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ke,n, Lane, Clark Hill Law Office (representing the Law Department); Gregory Stump.,', Boomershine, Rbert Rose, Employees Retirement System Board. It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of December 18, 2012. Adopted by the following vote: 6 — 0. Trustee St. Aubin requested that the Board hear an update from Trustee Robert Rose. Trustee Rose updated the Police and Fire Board regarding the progress of the pension software project. Trustee Rose informed the Board that the project is entering stage 2, where data will be extracted from the City's mainframe. Trustee Rose informed the Board that he will meet with the Project subcommittee regarding the addition of the death check project. . Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 347. 1 death(s), Benedict S. Novello, Fire, died 12/14/2012, age 85, beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the retirement system year-to-date amount to $0.00. Retirement allowances paid for the month of December, 2012 amounted to $2,119,191.95. Total retirement checks printed for the P&F System: 674. Total retirement checks printed for both systems: 1533. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting January 15, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Hecksel and supported by Trustee Wood to approve the following applications for Regular Age and Service Retirement: Matthew E. Kostrzewski, Fire Department, 25 years of service credits, age 48, Effective January 15, 2013. David Gates, Fire Department, 25 years of service credits, age 56, effective January 18, 2013. Adopted by the following vote: 6 -0. Karen Williams reported that the Retirement Office received two disability requests for the same applicant, #2013-P0115. The applicant requested a Duty Disability retirement. The applicant's department head submitted a request for nonduty disability. Trustee St. Aubin contacted the Retirement Analyst to inquire if the Retirement Board had a previous applicant that had two different requests for disability. Ms. Williams indicated that there was a previous applicant that had been sent to the Medical Director with similar requests for a duty and non -duty disability. Attorney Ken Lane opined that the Non -Duty Disability request from the Department arrived before the Duty Disability. The NonDuty Disability request had started the process first and the Board should proceed with the NonDuty request. Attorney Lane opined that the Medical Director has provided the Retirement Board with his opinion whether the duty disability or non -duty disability is appropriate. Attorney Lane reviewed the disability application policy. Trustee Kraus asked for clarification whether the Board was sending the non - duty request. It was moved by Trustee Hecksel and supported by Trustee Wood that the Medical Director receive both requests, based on past practice and as advised by legal counsel. Trustee Kraus offered a friendly amendment that was accepted by Trustee Hecksel to specify that the applicant is referred to the Medical Director as a nonduty disability request. Trustee Benson questioned whether the medical director should be the arbitrator of whether the applicant's disability is duty or non -duty. Regular Meeting January 15, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Ken Lane offered that the Medical Director has in the past provided an opinion whether a disability is duty or non -duty. However, the final decision lies with the Retirement Board. Trustee Benson expressed concern that Medical Director not the Board is making the determination of duty or non -duty. Trustee Benson stated that he believed the Board should make a determination prior to sending the request to the Medical Director. Trustee Benson inquired if the Board should delay the application until the worker's compensation case is settled. Trustee Wood believed that the Medical Director would be able to provide a determination based upon the information that he receives regarding the application. Adopted by the following vote: 5 -1 Karen Williams reported to the Board that Mr. Drew Macon, Lansing Police Department had request a request for his accumulated contributions of $47,299.68. Mr. Macon requested that his monies be rolled over to his new employer. It was moved by Trustee Kraus and supported by Trustee Wood to approve the following request for refund of Accumulated Contributions: Drew Macon, Lansing Police Department, $47,299.68 Trustee Hecksel clarified that the vote was only to release the money. The rollover was the responsibility of the former member. Adopted by the following vote: 6 — 0. It was moved by Trustee Hecksel and supported by Trustee Kraus to excuse Trustee Oleson from the Police and Fire Retirement System meeting due to illness. Adopted by the following vote: 6 — 0. Karen Williams updated the Board regarding the Retirement Conference. Mr. Mark Parker has established a date of September 12, 2013. Mr. Parker has plans to pattern the conference after the 2008 Retirement Conference. The morning session and health screenings were for retirees and the evening sessions were for current employees. Regular Meeting January 15, 2013 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 Kraus to nominate and elect Brad St. Aubin as chair and Robert Oleson as vice chairperson. Adopted by the following vote: 6 - 0 The following subcommittees were approved for the Police and Fire Retirement System for 2013: Disability Committee: Fabus, Hecksel, Kraus, St. Aubin Investment Committee: Benson, Fabus, Hecksel, Kraus and Oleson Education Committee: Fabus, Oleson, St. Aubin, Wood Special Projects: Kraus, Oleson, St. Aubin, Wood Joint Ad Hoc Committee On Health Care: Benson, Oleson, Wood Attorney Ken Lane informed the Police and Fire Retirement Board that the Military Service Purchase policy has been reviewed by the City Attorney's Office and the policy has been drafted for the Retirement Ordinance. Trustee Hecksel inquired to Mr. Greg Stump the difference between the costs of military time versus universal buy -in of time. Mr. Stump provided an overview of the calculation of the military service time described in the Police and Fire Retirement Board policy. It was moved by Trustee Wood and supported by Trustee Hecksel to accept the military service time purchase policy. Trustee Kraus clarified that a member who purchases universal time would not receive health care for the amount of time purchased. Adopted by the following vote: 6 -0. Trustee Wood requested that the draft be completed by the City Attorney's Office so that he could be moved to City Council. Attorney Ken Lane informed the Police and Fire Board that he reviewed the contract and termination provisions with EFI. He stated that the Board could terminate the contract with EFI by letter. Trustee Hecksel asked what would be the process to terminate the contract. Mr. Greg Stump left the meeting. Regular Meeting January 15, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Wood inquired if the Board could ask for information from Mr. Greg Stump's new firm. Trustee Wood inquired if the Board was required to go through the RFP process again. Attorney Ken Lane opined that the Board did not need to go through the RFP process. It was moved by Trustee Wood and supported by Trustee Kraus to have Mr. Greg Stump provide a presentation on his new company because there has been a change in leadership at EFI and its merger with a new company. Trustee Kraus offered a friendly amendment that was accepted by Trustee Wood that the decision regarding the actuary should be done in concert with the Employees Retirement System. Trustee Kraus expressed concern that the Police and Fire Board also work with the City concerning any decision to change actuary. Trustee Wood stated that the intent of her motion was only to request information Adopted by following vote: 6 — 0. Trustee Wood reviewed the amendments to the Open Meeting Act to place the meeting schedule on the website and the new rules on posting meeting notices. The 18 hour regulations are only for business hours. Attorney Ken Lane will provide a review of the changes of Public Act 314 and what is required for the website. Karen Williams provided a sample of the new Asset Consulting Group streamlined quarterly reports. It was moved by Trustee Fabus and supported by Trustee Hecksel to accept the modification to the Asset Consulting Group quarterly reports. Adopted by the following vote: 6 -0. Karen Williams distributed a memo from Asset Consulting Group recommending that no action be taken regarding changes to Northern Trust Security Lending account. Northern Trust was modifying the Securities Lending Program regarding the way non-cash collateral is held for participants. It was moved by Trustee Hecksel and supported by Trustee Wood to accept the recommendation from Asset Consulting Group regarding changes to Northern Trust Security Lending account. Adopted by the following vote: 6 — 0. Karen Williams distributed and reviewed the Investment and Securities Lending Reports for month ending December 31, 2012. It was moved by Trustee Kraus and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 11:20 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 POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 19, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:37 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 Keri Lane, Clark Hill Law Office (representing the Law Department). _ It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the, ; Official Minutes of the Police and Fire Retirement Board Meeting of January 19-, 2013. Adopted by the following vote: 7 — 0 ` a It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the Official Joint Minutes of the Police and Fire Retirement System and the Employees Retirement System Board Meeting of January 19, 2013. Adopted by the following vote: 7 — 0 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: 345. 0 death(s). Refunds made since the last regular meeting amounted to $47,299.68. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of January, 2013 amounted to $2,119,191.95. Total retirement checks printed for the P&F System: 677. Total retirement checks printed for both systems: 1543. 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: James E. Moreno, Sr., Fire Department, 25 years of service credits, age 53, effective January 22, 2013 Adopted by the following vote: 7 — 0. Regular Meeting February 19, 2012 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported Applicant #2013-170219 request for duty disability. It was moved by Trustee Oleson and supported by Trustee Benson to recess the Police and Fire Retirement Meeting to allow the disability subcommittee to meet the review the application. Adopted by the following vote: 7 — 0. The Retirement Board Meeting recessed at 8:46 a.m. The Retirement Board Meeting resumed at 8:49 a.m. It was moved by Trustee Hecksel and supported by Trustee Kraus to send Applicant #2013-F0219 to the medical director for duty disability evaluation. Adopted by the following vote: 7 -0. There were no requests for refund of accumulated contribution. The updates of the Arrivos Pension Software and Retirement Conference were moved to the Joint Board Meeting. There were no public comments. Attorney Ken Lane distributed provided a legislative update that summarized the recent amendments to the Public Employees Retirement System Investment Act. Attorney Lane reviewed the Police and Fire Retirement Board travel policy. Attorney Lane reviewed the guidelines for posting the annual report, how public employees' retirement systems may use income to hire professionals for the system. Attorney Lane discussed the FOIA changes making calculations for individuals confidential. Karen Williams explained how service credits are calculated. Service credits are based upon days not hours. A service credit is earned upon having no less than ten working days within a month. The Board discussed how service credits are implemented. Trustee Kraus suggested reviewing the definition of service credit for Police and Fire members. Regular Meeting February 19, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Ken Lane suggested that he would review the Ordinance to isolate the sections that would define service credits. Karen Williams reported to the Retirement Board that the web site has been updated with the 2013 schedule of meeting dates. Trustee Wood indicated that she would like to see the Trustee Policy Book on the Retirement web site. The Police and Fire Retirement Board tabled the actuary discussion until the Joint Board meeting. Karen Williams reviewed the Police and Fire Retirement Quarterly Expense Report for period ending December 31, 2012. Ms. Williams reviewed Operating and Administrative Expenses for the fourth quarter. It was moved by Trustee Oleson and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 7 -0 The meeting adjourned at 9:28 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES RETIREMENT SYSTEM MINUTES Joint Meeting February 19, 2013 Council Conference Room Tuesday, 9:30 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:39 a.m. A quorum of the Police and Fire Retirement Board and the Employees Retirement Board was present. Trustees present: (Police & Fire), Benson, Fabus, Hecksel, Kraus, St. Aubin, Olesgr, Wood — 7. (ERS), Dedic, Kraus, Munroe, McCaffery, Parker, Rose, Taylor, Wood — 8. Other presents: Angela Bennett, Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Cliff Kalish, Patrick Quinn, William Blair. Mr. Cliff Kalish provided an overview of the William Blair organization. Mr. Patrick Quinn provided an Investment philosophy and process presentation. Mr. Quinn discussed the investment performance and the portfolio strategy. Mr. George Tarlas, Asset Consulting Group provided a Year -End Performance Review of the Police and Fire Retirement System and Employees Retirement System investment portfolios. Mr. Tarlas discussed the global economy and its impact on investments. He provided an analysis of the equities, fixed income and real estate assets. Mr. George Tarlas reviewed the TRowe Price Investment guidelines and amendments that include Investment objectives, strategies, unauthorized investments and restrictions and Performance Benchmarks. Mr. Tarlas requested that the Police and Fire System and the Employees Retirement System accept the new guidelines for TRowe Price. It was moved by Trustee Wood and supported by Trustee Hecksel to accept the TRowe Price Investment guidelines as amended for the Police and Fire Retirement System, contingent upon approval by legal counsel. Adopted by the following vote: 6 - 0 Joint Meeting Council Conference Room 10th Floor City Hall Lansing, MI February 19, 2013 Tuesday, 8:30 a.m. Page 2 It was moved by Trustee Wood and supported by Trustee Parker to accept the TRowe Price Investment Guidelines as amended for the Employees Retirement System, contingent upon legal counsel approval. Adopted by the following vote: 8 — 0. Mr. George Tarlas reviewed the Quarterly Cash Flow Withdrawal Requests. The Employees Retirement System Board and the Police and Fire Board agreed to $10,000 for quarterly cash flow withdrawals for administrative expenses. It was moved by Trustee Hecksel and supported by Trustee Benson to approve quarterly cash flow withdrawal of $3.5 million from the Integrity portfolio and $3.5 million from the William Blair portfolio as recommended by Asset Consulting Group, and $10,000 from the Northern Trust Securities Lending account to the Comerica account for Police and Fire Retirement System administrative expenses. Adopted by the following vote: 6 — 0. Trustee Hecksel requested an educational meeting with George Tarlas to discuss investment options available with the passage of amendments to Public Act 314. It was moved Trustee Parker and supported by Trustee Rose to approve quarterly cash flow withdrawal of $3 million from the Integrity portfolio and $3 million from the William Blair portfolio as recommended by Asset Consulting Group, and $10,000 from the Northern Trust Securities Lending account to the Comerica account for Employees Retirement System administrative expenses. Adopted by the following vote: 8 — 0. Trustee Robert Rose provided an update of the Tegrit Software implementation. Trustee Rose discussed the manual data load and discussed death check services proposal to the pension system software. Trustee Rose reported that the Tegrit Software committee will review the death check proposals and provide a recommendation at the next Board meeting. Trustee Rose discussed the Dewpoint Contract extension for Dawn Polihonki as the project coordinator for the software implementation. Trustee Rose requested an extension of $30,000 for the professional services agreement and that the costs are shared by the Employees Retirement System and the Police and Fire Retirement System. Joint Meeting Council Conference Room 10th Floor City Hall Lansing, MI February 19, 2013 Tuesday, 8:30 a.m. Page 3 It was moved by Trustee Wood and supported by Trustee Kraus that the Employees Retirement System approve the Dewpoint contract extension for $15,000 and that the costs be paid from the Security Lending Administrative funds. Adopted by the following vote: 8-0 It was moved by Trustee Wood and supported by Trustee Hecksel that the Police and Fire Retirement System approve the Dewpoint contract extension for $15,000 and that the costs be paid from the Security Lending administrative funds. Adopted by the following vote: 6 — 0. Trustee Mark Parker updated the Joint Boards regarding the Retirement Conference for 2013. Trustee Parker reported that the contract had been signed for the Lansing Center for September 14, 2013. Trustee Parker stated that the subcommittee will begin meeting to discuss the selection of speakers, health screenings, and conference budget. The Joint Board discussed the merger between EFI and Cheiron. Trustees expressed concerns about the new structure of the merged company and that this company is different from the one hired by the Boards. Trustees also expressed concerns that Mr. Greg Stump, one of their primary actuary had left EFI. Attorney Ken Lane reviewed the contract provisions for termination of actuarial services. The Joint Boards discussed having presentations by both companies, Cheiron and Mr. Greg Stump's new company, Boomershine Consulting Group. The Joint Board discussed having 45 minute presentations with an additional 15 minutes for questions. Trustee Wood stated requested that the presentations be held before March 31, before the City budget process and meetings begin. The Meeting adjourned at 11:43 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Employees Retirement System Brad St. Aubin, Chairperson Police and 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 February 21, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:39 a.m. Present: Dedic, Kraus, McCaffery, Munroe, Parker, Rose, Taylor — 7 Absent: Trustee Bernero, Wood Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clarkt­�_Hill (representing the City Attorney's Office). It was moved by Trustee Parker and supported by Trustee Rose to approve the OfficrzRI Minutes of the Joint Police and Fire and the Employees Retirement System .Board, Regular Meeting of January 15, 2013. __: Adopted by the following vote: 7 - 0 fQ It was moved by Trustee Taylor and supported by Trustee Parker to approve the Official Minutes of the Employees Retirement System Board Meeting of January 15, 2013. Adopted by the following vote: 7 — 0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 4 retired. Total active membership: 354. Total deferred: 66. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of January 2013, amounted to $1,797,156.35. Total retirement checks printed for the ERS System: 866. 2 death(s). Dema L. Riel, died 1/8/2013, (Public Service/UAW, retired 8/25/1984), age 93, no beneficiary; Alan E, Tubbs, died 1/19/201$, (Planning/Executive Plan, retired 1/5/1993), age 73, no beneficiary. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported by Trustee McCaffery to approve the following Request for Regular Age and Service Retirement: C. Carnell Walker, (Public Service/Tearnster) -25 years, 1 month of service credits, age 54, effective January 25, 2013. Employees Retirement Systern Regular Meeting of February 21, 2013 Page 2 It was moved by Trustee Wood and supported by Trustee Parker to approve the following request for Regular Age and Service Retirement (cont.): Charles M. Creamer, (City Council/Elected Official) — 8 years of service credits, age 58, effective February 1, 2013. (From Deferred) Margaret Vrornan (City Attorney's Office/Elected Official), 8 years, 6 months of service credits, age 58, effective February 1, 2013. (From Deferred). Linda Pitts (Police-Civilian/Teamster) — 12 years, 5 months of service credits, age 58, effective February 1, 2013. (From Deferred) Harry L. James (Public Service/UAW) — 14 years, 5 months of service credits, age 58, effective February 1, 2013. (From Deferred). George Milekovich, (Public Service/UAW) — 32 years, 7 months of service credits, age 51, effective February18, 2013. Adopted by the following vote: 7-0. Applicant #2012 — E1213 has submitted his medical release and his medical records will be forwarded to the doctor. Karen Williams reported that Ms. Jacqueline Lindeman, FOP 911 requested a return of her accurnulated contributions of $3,437.84. Ms. Lindeman was not vested. It was moved by Trustee Kraus and supported by Trustee Parker to approve the following request for Refund of Accumulated Contributions: Jacqueline Lindeman, FOP 911, $3,437.84 Adopted by the following vote: 7 — 0. Trustee Dedic reported that Trustee Carol Wood requested an excuse from the ERS Board Meeting. It was moved by Trustee Rose and supported by Trustee McCaffery to excuse Trustee Carol Wood from the February Employees Retirement System Board meeting. Adopted by the following vote: 7 — 0. Trustee Scott Dedic presented his report of the One Day Mapers Conference. Trustee Dedic attended the low volatility product presentation. He also attended the actuarial and trustee training sessions. Employees Retirement System Regular Meeting of February 21, 2013 Page 3 Attorney Ken Lane distributed and reviewed the amendments to Public Act 314 and the Open Meeting Act. Attorney Lane reviewed the Employees Retirement System Board travel policy and the budget required by the Public Act. Attorney Lane reviewed the guidelines for posting the annual report, how public employees' retirement systems may use income to hire professionals for the system. Attorney Lane reviewed that public employee retirement systems are prohibited from paying service providers that have made a contribution to an official of a government entity. Attorney reviewed the basket clause and amendments governing when a fiduciary is convicted of a crime relating to an investment services performed for a retirement system. Attorney Lane also discussed the FOIA changes making calculations for individuals confidential. Attorney Lane updated the ERS Board regarding the status of the Ordinance. He reported that Foster Swift is drafting language to include the recent Teamster 214 contract. Trustee Pose inquired about moving to a new actuary. He inquired if the ERS Board had any responsibility or liability regarding a non -compete clause. Attorney Lane opined that a non -compete is not the responsibility of the ERS Board. If there is a non—cornpete clause, Mr. Stump would need to disclose the information. Trustee Rose inquired if the ERS Board needs to have additional actuarial presentations. Attorney Lane reviewed the termination provisions in the EFI contract. The ERS Board agreed to have a joint meeting with the Police and Fire Retirement System to hear presentations from Cheiron and Boomershine. Karen Williams requested a contact person to approve iterns for the website. Trustee Robert Rose stated that he would be the contact person for the website. Trustee Munroe volunteered to help update the website. Karen Williams reported that the Retirement Office received an email from Angela Bennett regarding the 911 transfer. Ms. Bennett stated that actuary was providing a final review of the 911 transfer and the report should be available at the next meeting. Trustee Mark Parker provided an update for the 2013 Retirement Conference. The Retirement Conference has been scheduled for Thursday, September 14 at the Lansing Center. The Conference committee had met and planned to meet after the monthly Police and Fire Retirement meetings. The Committee discussed a budget of $30,000 for conference. Trustee Rose provided an update of the Pension Software Project. Trustee Rose stated that the pension software committee had met to review the proposals for the death check options. Karen Williams reviewed the Quarterly Expense Report for the quarter ending December 31, 2012. The meeting adjourned at 9:11 a.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 EMPLOYEES RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI March 21, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:39 a.m. Present: Dedic (8:40), Kraus, McCaffery, Munroe, Parker, Rose, Taylor (8:46), Wood — 8 Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Nall (representing the City Attorney's Office), Brad St. Aubin, Robert Hecksel:, Police and Fire Retirement System. Trustee Rose presided over the meeting. Trustee Dedic arrived and assumed the chair. It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official Minutes of the Joint Police and Fire and the Employees Retirement System Board Regular Meeting of February 19, 2013. Adopted by the following vote: 6 - 0 It was moved by Trustee Kraus and supported by Trustee McCaffery to approve the Official Minutes of the Employees Retirement System Board Meeting of February 21, 2013. Adopted by the following vote: 7 — 0. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 5 retired. Total active membership: 346. Total deferred: 63. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of February 2013, amounted to $1,775,244.92. Total retirement checks printed for the ERS System: 872. 0 death(s). Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of March 21, 2013 Page 2 It was moved by Trustee Wood and supported by Trustee Rose to approve the following Request for Regular Age and Service Retirement: Florence W. Jones (City Clerk/Teamster) -9 years, 6 months of service credits, age 62, effective March 30, 2013. Adopted by the following vote: 7-0. Applicant #2012 — E1213 medical records have been forwarded to the doctor for an appointment. There were no requests for non- duty disability retirement. Karen Williams reported that Mr. Cameron Davis, Finance requested a return of his accumulated contributions of $40,139.10. Ms. Williams reported that Christopher lannuzzi, District Court Exempt requested a return of his accumulated contributions of $1,741.22. He was not vested. It was moved by Trustee Wood and supported by Trustee Rose to approve the following request for Refund of Accumulated Contributions: Cameron Davis, Finance, Teamster 580, $40,139.10 Christopher lannuzzi, District Court Exempt, $1,741.22 Trustee Rose requested information on the process regarding accumulated contributions. Attorney Ken Lane explained that employees who terminate their membership must complete a withdrawal form forfeiting their pension benefits. Attorney Lane also explained that employees who are re-employed with the City within five years can re -pay the accumulated contributions. Adopted by the following vote: 7 — 0. Karen Williams reported to the ERS Board that the following Conferences were accepting registrations: MAPERS Spring Conference, June 2-4, NCPERS Annual Conference in May, and IFEBP Annual Conference, October 20 - November. Trustee Taylor arrived to the meeting Trustee Dedic stated that he plans to attend MAPERS and requested permission to attend the IFEBP Annual Conference. Employees Retirement System Regular Meeting of March 21, 2013 Page 3 It was moved by Trustee Kraus and supported by Trustee Taylor to permit the chairperson to attend the IFEBP Annual Conference. Adopted by the following vote: 8 — 0 It was moved by Trustee Kraus and supported by Trustee Taylor to permit all members who wished to attend the IFEBP Annual Conference. Adopted by the following vote: 8 -0 There were no public comments. Attorney Lane updated the ERS Board regarding the status of the Ordinance. He reported that Foster Swift is drafting language to include the recent Teamster 214 contract. Public Act 314 amendments take effect in March and Attorney Lane will continue to provide and update the ERS Board with policies to comply with the amendments. Karen Williams reported that the Police and Fire Board requested a joint meeting to discuss the actuarial services, followed by Education Training, April 18. Trustee Wood distributed the Financial Health Team Report and requested that the Board discuss the report at the next ERS Board meeting. Trustee Dedic reported to the ERS Board that he had Mr. George Tarlas of Asset Consulting Group give a presentation to the Financial Health Team regarding the City of Lansing Retirement System and its investments. Trustee Dedic stated that there was a discussion comparing the City of Lansing System to the Municipal Employees Retirement System (MERS), and transferring the City of Lansing System to MERS. Trustee Wood expressed concern that members of Financial Health Team and the public does not have a full understanding of City of Lansing Retirement Systems and the long term implications. Trustee Rose provided an overview of the actuarial interviews of Cheiron, Inc. and Boomershine Consulting Group. Trustee Rose had concerns that the Boards were moving too soon. He expressed concerns regarding staffing with Boomershine Group. Trustee Rose requested that questions regarding the actuaries should be forward to the chair to get responses. Trustee Munroe suggested that members review both companies' website. Trustee Munroe had concerns that staff is small and many were not accredited at Boomershine. Employees Retirement System Regular Meeting of March 21, 2013 Page 4 Trustee Wood expressed concern regarding Cheiron's performance. Trustee Wood is taking a lot of time to provide the 911 transfer valuation and there has been issues receiving actuary purchase requests in a timely manner. Trustee Wood discussed that the decision regarding the actuary should include input from both boards. Trustee Wood also expressed concern that Cheiron had the staff spread among various locations, and Boomershine had their entire staff in one location. Trustee Parker believed that Boomershine made a powerful pitch to provide actuarial services Trustee Kraus indicated that she had concerns regarding the Boomershine Consulting Client base. Trustee Kraus questioned how big are the clients, and if Boomershine had the back staff to support the requests from both City of Lansing system. Trustee Kraus also had concerns regarding Cheiron's performance. Trustee Kraus questioned how much of Cheiron's current performance had to do with Greg Stump's departure. Attorney Lane indicated that Trustee Wood asked both companies if they had legal staff that monitored the state's law and had someone to review their recommendations to the Boards. Attorney Lane indicated that Boomershine's response was more realistic as they indicated that Boomershine would consult and rely on the Board's legal counsel for review of recommendations. Trustee Rose inquired if the Retirement Board used a Request for Proposal for actuary services. Trustee Kraus indicated that there was an RFP process to select the actuary. Trustee Dedic had done some due diligence and concerns regarding the EFI and Cheiron transfer. Trustee Dedic opened the floor to allow Trustee St. Aubin and Trustee Hecksel from the Police and Fire Retirement Office had any concerns that he wished to share with the Board. Trustee St. Aubin discussed his concerns regarding EFI ownership transition plan and its merger with Cheiron due to Mr. Gregory Stump's departure. Trustee Hecksel expressed that he preferred Mr. Greg Stump's communication style. Trustee Hecksel believed that the Boomershine staff, although smaller than Cheiron, could handle the City of Lansing's business. Trustee Hecksel indicated that the Boomershine transition plan did include Mr. Greg Stump as lead actuary and Mr. Stump will run the company. Karen Williams reported that the Retirement Office received notification from Angela Bennett regarding the 911 transfer. Ms. Bennett stated that actuary was providing a final review of the 911 transfer and the report should be available at the next meeting. Trustee Mark Parker provided an update for the 2013 Retirement Conference. The Retirement Conference has been scheduled for Thursday, September 14 at the Lansing Center. The Conference committee has met and plans to meet after the monthly Police and Fire Retirement meetings. The Committee distributed a budget of $30,000 for conference. Mr. Parker requested appropriations of $15,000 from the Employees Retirement Board for the Retirement Conference. It was moved by Trustee Parker and supported by Trustee Rose to approve up to $15,000 from the Employees Retirement System's administrative fund for the 2013 Retirement Conference. Adopted by the following vote: 8 — 0. Trustee Rose provided an update of the Pension death check software. Trustee Rose stated that the project had moved into its second stage of data gathering. Karen Williams indicated that she has begun the manual data input for the Arrivos software. Attorney Ken Lane requested, that the Board receive the final actuary valuation report and receive confirmation from the Finance Department that the full retirement contribution has been made to the Employees Retirement System. Karen Williams distributed and reviewed the Investment and Securities Lending Report for the month ending March 31, 2013. The meeting adjourned at 9:52 a.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 EMPLOYEES RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI April 18, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:39 a.m. Present: Dedic, Kraus, McCaffery, Munroe, Parker, Rose, Wood — 7 Absent: Trustee Bernero, Taylor Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office), Brad St. Aubin, Police - and Fire Retirement System. It was moved by Trustee Wood and supported by Trustee Munroe to approve the Official Minutes of the Joint Police and Fire and the Employees Retirement System Board Regular Meeting of March 19, 2013. Adopted by the following vote: 7 - 0 It was moved by Trustee Wood and supported by Trustee Parker to approve the Official Minutes of the Employees Retirement System Board Meeting of March 21, 2013. Adopted by the following vote: 7 — 0. Trustee Brad St. Aubin, Police and Fire Retirement Board spoke regarding discussions comparing the City of Lansing Retirement System to the Municipal Employees Retirement System (MERS), and transferring the City of Lansing System to MERS. Trustee St. Aubin stated that the Joint Boards are implementing comprehensive software systems at a significant cost and effort. Trustee St. Aubin inquired if the Joint Boards should find out the City's intentions for the pension system based on the recommendations listed in the Financial Health Team Report. Trustee Wood stated that MERS came to the Financial Health Team and presented information. Trustee Wood read the pension recommendations from the Financial Health Team Report. Trustee Dedic stated that he believed that the Health Team wanted to have a comparative analysis of what services MERS performs and review what services the City performs. Trustee Dedic stated that this comparison was not done. Employees Retirement System Regular Meeting of April 18, 2013 Page 2 Trustee Wood inquired asked the legal counsel to review the ordinances regarding transferring the retirement system Attorney Ken Lane stated that he would research if the City of Lansing administration could move to MERS without a vote. Trustee Kraus stated she had spoken with a MERS representative and there was no indication that plans have been discussed of that an in-depth analysis of the City's retirement system had taken place. Trustee Kraus stated that the Joint Board should continue with the implementation of the software system. Ms. Angela Bennett indicated if such a transfer was considered, there would need to be much further analysis on the system. Trustee Wood stated that the Joint Boards have expenses monies for the software implementation from their administration funds. The contracts for these software vendors are long term and there should be a provision for the money spent by the Joint Boards to be recouped if there was a transfer. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 342. Total deferred: 64. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of March 2013, amounted to $1,812,431.98. Total retirement checks printed for the ERS System: 873. 2 death(s), Barbara Davis, died 2/27/2013, age 88, spouse of Exempt retiree; Arthur E. Buck, died 4/7/2013 (Parks/UAW, retired 2/1/1999), age 85,no beneficiary. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported by Trustee Parker to approve the following Request for Regular Age and Service Retirement: Joyce L. Norin (Finance/Teamster) — 17 years, 5 months of service credits, age 62, effective April 12, 2013 (with five years of universal service credit purchases) Christine Segerlind (Planning/Teamster) — 15 years, 3 months of service credits, age 65, effective April 12, 2013 Barbara Jo Letherby, (Finance/Teamster) — 16 years, 8 month of service credits, age 61, effective April 19, 2013 William Fuller (Public Service/Teamster) — 32 years, 5 months of total service credits includes, 29 years, 6 months of service credits in the UAW, age 53, effective April 27, 2013. (Transferred unions June 7, 2010) Adopted by the following vote: 7 - 0 Employees Retirement System Regular Meeting of April 18, 2013 Page 3 Applicant #2012 — E1213 has been scheduled for the doctor. There were no requests for non- duty disability retirement. Karen Williams reported that Mr. Brigham Smith, City Attorney requested a return of his accumulated contributions of $58,013.95. He was not vested. It was moved by Trustee Rose and supported by Trustee Parker to approve the following request for Refund of Accumulated Contributions: Brigham Smith, City Attorney, $58,013.95 Adopted by the following vote: 7 — 0. Karen Williams reported to the ERS Board that MAPERS Spring Conference will be June 2-4. There were no public comments. Attorney Lane updated the ERS Board regarding the status of the Ordinance. He reported that Foster Swift is drafting language to include the recent Teamster 214 contract. Public Act 314 amendments took effect in March and Attorney Lane will provide and update the ERS Board with a copy of Public Act 314 and provide policies to comply with the amendments. Attorney Ken Lane announced that Clark Hill has merged with Thorpe Reed in Pittsburg and acquired approximately 300 attorneys. Attorney Lane stated that there will be no changes in Clark Hill's representation on the Board. Trustee Wood requested that the Financial Health Team Report be discussed at the next ERS Board meeting. Trustee Dedic requested that the City Budget recommendations be discussed at the Joint Meeting. Angela Bennett provided a memo to the Employees Retirement System detailing the remaining City of Lansing Retirement Contribution of $392,539 on March 28, 2013. The contribution was transferred by the City of Lansing to the Employees Retirement System for the balance of the FY 2013 contribution. The amount combined with the $8,194,000 contributed November 1, 2012 equaled the actuarial valuation calculated amount. Employees Retirement System Regular Meeting of April 18, 2013 Page 4 Attorney Ken Lane stated that he had reviewed the actuary report and it complies with Public Act 314. Ms. Bennett noted that she requested Cheiron provide that a footnote be formatted differently, but she had not seen a final version. It was moved by Trustee Wood and supported by Trustee Rose to adopt the ERS Actuary Valuation, year ending 2011 and to accept the remainder of City of Lansing Retirement Contribution. Adopted by the following vote: 7 — 0. Ms. Angela Bennett reported that Cheiron was reviewing the 911 transfer and found some issues and discrepancies with the data. Ms. Bennett also noted that the recent change of assumptions will need to be factored into the valuation report. They are working to provide the report at the next meeting. Ms. Bennett stated that the funds had not been transferred. Ms. Kraus inquired about the issues and data discrepancies that were found. Ms. Bennett noted that there were problems with multiplier differences and it appeared that base salary was used instead of final average compensation. Trustee Mark Parker provided an update for the 2013 Retirement Conference. The Retirement Conference has been scheduled for Thursday, September 12 at the Lansing Center. The Conference committee has met and continues it planning meetings after the monthly Police and Fire Retirement meetings. Trustee Rose provided an update for the Retirement Software implementation. Trustee Rose stated that Tegrit and the Finance Department is working on the IFAS system upload. The next phase would be to upload data from old mainframe, Bridge data. Trustee Rose stated the committee will meet to provide a recommendation for the death check software. Karen Williams indicated that she is working on the manual data input for the Arrivos software. Karen Williams distributed and reviewed the Securities Lending Report for the month ending March 31, 2013. The meeting adjourned at 9:13 a.m. Minutes approved on Scott Dedic, Chairperson Employees' Retirement System Angela Bennett, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM (corrected) Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI May 23, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:41 a.m. Present: McCaffery, Parker, Rose, Taylor, Wood — 5 r-� Absent: Trustee Bernero, Dedic, Kraus, Munroe Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office), Diane Lee, Retiree; Steve Harry. Trustee Robert Rose presided. It was moved by Trustee Wood and supported by Trustee McCaffery to approve the Special Minutes of the Joint Employees Retirement System and the Police and Fire Retirement Board Meeting of April 18, 2013. Adopted by the following vote: 5 — 0. 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 April 18, 2013. Adopted by the following vote: 5 - 0 Mr. Steve Harry asked when the actuarial valuation would be available. Attorney Lane responded that the valuation is generally received in late November. Mr. Steve Harry inquired about the difference between the old plan and new plan. Trustee Rose explained that through collective bargaining, changes to the eligibility requirements and retirement multiplier were made for members of certain unions. The new plan members are mostly made up of employees who began City Employment after October 1990 for certain bargaining units. Trustee Wood added that certain bargaining units left the defined benefit plan and went to the defined contribution plan. Members in these bargaining units who returned to the defined benefit plan after 2003 are new plan. Employees Retirement System Regular Meeting of May 23, 2013 Page 2 Ms. Diane Lee, City of Lansing retiree, stated that she was attending the Retirement meeting to observe the proceedings. Trustee Wood asked to take up item 14 e. regarding the City Budget recommendation legal update out of order. It was moved by Trustee Wood and supported by Trustee Parker to discuss the City Budget Recommendation Legal update out of order. Adopted by the following vote 5-0. Attorney Ken Lane reported that he had a confidential City Attorney opinion to discuss with the Employees Retirement System Board in closed session. It was moved by Trustee Wood and supported by Trustee Parker to go into closed session to review a client attorney matter regarding the City Budget recommendation. Adopted by the following roll call vote: 5 — 0 Yes: McCaffery, Parker, Rose, Taylor, Wood No: 0 The Employees Retirement System Board closed the meeting session at 8:45 a.m. The Employees Retirement System Board opened session at 9:08 a.m It was moved by Trustee Wood and supported by Trustee McCaffery for the Employees Retirement System Board to waive the confidentiality of the City Attorney's Opinion regarding the pension administrative costs. Adopted by the following vote: 5 — 0 Secretary=s Report. 3 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 4 retired. Total active membership: 335. Total deferred: 62. Refunds made since the last regular meeting amounted to $58,013.95. Retirement allowances paid for the month of April 2013, amounted to $1,779,362.99. Total retirement checks printed for the ERS System: 873. 3 death(s), Janet S. Lyman, died 1/30/2013, age 61, spouse of UAW retiree; Teresa Pugh, died 2/27/2013, age 66, spouse of Exempt retiree; Carol J. Horst, died 4/14/2013, age 63, spouse of UAW retiree. Eligible domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of May 23, 2013 Page 3 It was moved by Trustee Wood and supported by Trustee Parker to approve the following Request for Regular Age and Service Retirement: Brenda Jodway (Planning/Teamster) — 12 years, 4 months of service credits, age 61, effective May 1, 2013 Adopted by the following vote: 5 - 0 It was moved by Trustee Wood and supported by Trustee Parker to approve the following Request for Regular Age and Service Retirement: Frank Eirosius (Planning/Teamster) — 12 years, 6 months of service credits, age 57, effective May 1, 2013 (Old Plan — 65 points) Adopted by the following vote: 5 - 0 It was moved by Trustee Wood and supported by Trustee Parker to approve the following Request for Regular Age and Service Retirement: Clarence W. Osborne, Jr. (Finance/Teamster) — 1 year, 11 months of service credits, age 58, effective May 1, 2013. (( From Deferred (Vested (8 years, 1 month) -Transferred from Defined Contribution, but did not purchase time/Also use Reciprocal Retirement Act — Total Eligibility 24 years, 1 months)) Karen Williams explained that Mr. Osborne was a new plan member who did not purchase time when he transferred from Defined Contribution to Defined Benefit. Adopted by the following vote: 5 - 0 Applicant #2012 — E1213 has seen the doctor. The disability subcommittee is waiting for the medical report. Karen Williams reported that Applicant #2013-E0523 has requested consideration for duty disability. Applicant #2013-E0523 request was referred to the disability subcommittee for review. Karen Williams reported that Applicant #2013-E0524 has requested consideration for non -duty disability. Applicant #2013-E0524 request was referred to the disability subcommittee for review. Employees Retirement System Regular Meeting of May 23, 2013 Page 4 Karen Williams reported that the following former members have requested a return of their accumulated contributions: Diana Bitely, City Council Staff, $26,308.02 Curtis Michael Mathis, Police/Civilian-Teamster(Detention), $30,516.84 Jennifer V. White, Police/Civilian-Teamster(Detention), $9,434.67 It was moved by Trustee Wood and supported by Trustee Taylor to approve the request for the return of accumulated contributions for Ms. Diana Bitely. Trustee Wood inquired if Ms. Biteley was aware of the reciprocal retirement act. Ms. Williams indicated that Ms. Bitely was sent a copy of the reciprocal retirement act, a copy of the Ordinance that governs the return of accumulated contribution. Adopted by the following vote: 5 — 0. It was moved by Trustee Wood and supported by Trustee Parker to approve the request for the return of accumulated contributions for Mr. Curtis Michael Mathis. Adopted by the following vote: 5 — 0 It was moved by Trustee Taylor and supported by Trustee Parker to approve the request for the return of accumulated contributions for Ms. Jennifer V. White. Adopted by the following vote: 5 — 0. Karen Williams reported that she received notice from Trustees Antonia Kraus, Carol Munroe and Scott Dedic that they would not be at the May ERS Retirement Meeting and requested an excused absence. Trustee Wood noted that Trustee Kraus does not require an excused absence per the Retirement Ordinance. She is not an elected or appointed position It was moved by Trustee Wood and supported by Trustee Parker to excuse Trustee Dedic and Trustee Munroe from the May Retirement Board meeting. Adopted by the following vote: 5 — 0. Karen Williams reported that the family of Ms. Janet S. Lyman has requested that the return of her pension overpayment be waived. Ms. Lyman died January 30, 2013 and her death was reported in April. Retirement payments after the retiree's death were directly deposited into the retiree's bank account. Ms. Williams talked with the retiree's son and provided a letter to the family requesting repayment to the City of the overpayment. The retiree's son stated that the money in her account was taken by the bank to pay a debt. Employees Retirement System Regular Meeting of May 23, 2013 Page 5 Mr. Lyman sent an email stating that he was advised that he was not responsible for this repayment. Trustee Wood stated that a similar situation happened in the Police and Fire System. Trustee Wood stated that it was the Board's responsibility to have these funds repaid. Attorney Lane inquired if the Retirement Board wished for him to contact the family by letter with options for repayment. Trustee Rose referred the email from the retiree's son for response. Karen Williams distributed the current City of Lansing Travel Policy. Attorney Lane updated the ERS Board regarding the status of the Ordinance. He reported that Foster Swift completing language to include the recent Teamster 214 contract. Attorney Lane reviewed the Actuarial Services contract with Boomershine Consulting Group. The Financial Health Team Report discussion was moved to pending. Karen Williams reported that the deadline for the Duty Disability Income verifications certifications were due April 30, 2013. There was one duty disability retiree that did not return a certification. The member will receive a second request for the certification that will be due June 14, 2013. Karen Williams reported that the Public Service Trustee position held by Trustee Bob Rose will expire June 30, 2013. Karen Williams reviewed the details for the election. Trustee Wood inquired if Trustee Rose would remain in office after his term expires if an election is not held by June 30, 2013. Attorney Ken Lane opined that Trustee Rose would remain in office until an election is held for the Public Service Trustee position. Ms. Angela Bennett reviewed the details surrounding the delay for the 911 Center Transfer. Ms. Angela Bennett stated that the initial valuation was done by Gabriel Roeder Smith for the transfer of the 911 center took place. The Retirement Board hired another actuarial firm, EFI in 2010. The Retirement Board requested that EFI review and provide an updated valuation for the 911 transfer. EFI reported that they were able to come close to the valuation provided by Gabriel Roeder Smith. At the end of 2012, EFI was merged within Cheiron. Cheiron was reviewed the 911 transfer and found some issues and discrepancies with the data. Cheiron noted that higher multipliers and base wage may have been used for the Gabriel Roeder Smith calculation. Cheiron provided a new valuation with the updated multipliers and compensation. The difference was approximately $300,000. Ms. Bennett stated there needed to be a reconciliation of the numbers. Ms. Bennett had discussion with Ingham County regarding these discrepancies. Ms. Bennett stated that the funds had not been transferred. Trustee Taylor stated that the Retirement Board should send this information to the new actuary. Trustee Wood recommended that the Board request the work product that was prepared by Gabriel Roeder and Smith. Trustee Rose suggested a special meeting to review the valuation for the 911 Center with the new actuary, the finance director and the Retirement Board. Attorney Lane stated that although the contract with Cheiron/EFI ends June 6, 2013, the termination letter requested that the company complete pending items. Ms. Bennett recommended that a letter from the Board be sent to GRS requesting information used for the 911 Center transfer valuation. This information can be forwarded to Boomershine Consulting Group for the company to complete the valuation. Trustee Wood suggested that an additional letter be sent to Boomershine Consulting Group for a timeline for the valuation, once the information from GRS has been received. The Retirement Conference and Tegrit Pension Software update was moved to the Joint Meeting for discussion. Karen Williams distributed and reviewed the Quarterly Expense Report and Securities Lending Report. The meeting adjourned at 9:46 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Robert Rose, Vice Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting June 20, 2013 City 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 8:30 a.m. Present: Dedic, Kraus, Munroe, Parker, Rose (8:32), Taylor, Wood — 7 Absent: Trustee Bernero Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official Minutes of the Employees Retirement System Board Regular Meeting of May 23, 2013. Adopted by the following vote: 6 - 0 It was moved by Trustee Taylor and supported by Trustee Parker to approve the Official Minutes of the Joint Employees Retirement System and the Police and Fire Retirement Board Meeting of May 23, 2013. Adopted by the following vote: 7 — 0. Secretary=s Report. 0 new member(s), 0 reinstatement(s), 3 refund(s), 0 transfers, 3 retired. Total active membership: 328. Total deferred: 62. Refunds made since the last regular meeting amounted to $66,259.53. Retirement allowances paid for the month of May 2013, amounted to $1,848,925.49. Total retirement checks printed for the ERS System: 879. 3 death(s), Charles Leland (Public Service/Exempt —retired 7/15/1989), died 5/17/2013, age 85, no beneficiary; George Thompson (Parks/Exempt — retired 2/28/1981), died 5/30/2013, age 92, no beneficiary; spouse of Exempt retiree; Edithe Clay, died 5/12/2013, age 89, spouse of Exempt retiree. Eligible domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Parker and supported by Trustee Rose to approve the following Request for Regular Age and Service Retirement : Gary L Nobach (Public Service/Teamster) — 24 years, 10 months of service credits, age 59, effective June 1, 2013 Employees Retirement System Regular Meeting of June 20, 2013 Page 2 It was moved by Trustee Parker and supported by Trustee Rose to approve the following Request for Regular Age and Service Retirement (cont.): Arnold Yerxa (Mayoral/Council Staff) — 9 years, 9 months of service credits, age 64, effective June 15, 2013 Gunars Liepins (Public Service/UAW) — 18 years, 5 months of service credits, age 61, effective June 15, 2013. Tracy C. Hammond, Sr. (Public Service/UAW) -,15 years, 11 months of service credits, age 63, effective June 29, 2013. Adopted by the following vote: 7 - 0 Karen Williams updated the Employees Retirement Board regarding the Duty Disability Retirement requests. Ms. Williams notified the Board that the medical report for Applicant #2012 —E1213 had been received and forwarded to the disability subcommittee. It was moved by Trustee Taylor and supported by Trustee Wood to concur with the medical director's recommendation and approve the duty disability retirement of Applicant #2012-E1213. Adopted by the following vote: 7 — 0. Karen Williams reported that Applicant #2013-E0523 has requested a duty disability retirement. The request was referred to the disability subcommittee for review. It was moved by Trustee Taylor and supported by Trustee Kraus to refer Applicant #2013-E0523 to the Medical Director for duty disability evaluation. Adopted by the following vote: 7 — 0. Karen Williams reported that Applicant#2013-E0524 has requested a non -duty disability retirement. The request was referred to the disability subcommittee for review. Adopted by the following vote: 7 — 0. Karen Williams reported that the following former member has requested a return of their accumulated contributions: Erika A. Kahler, City Attorney Staff, $6,824.47 Employees Retirement System Regular Meeting of June 20, 2013 Page 3 It was moved by Trustee Wood and supported by Trustee Munroe to approve the request for the return of accumulated contributions for Ms. Erika A. Kahler. Adopted by the following vote: 7 — 0. Karen Williams reported that she received notice from Trustees Howard McCaffery that he would not be at the June ERS Retirement Meeting and requested an excused absence. It was moved by Trustee Rose and supported by Trustee Wood to excuse Trustee McCaffery from the June Retirement Board meeting. Adopted by the following vote: 5 — 0. Trustee Kraus provided a MAPERS Spring Conference Report. Trustee Kraus reviewed the proposed FOIA legislation. Trustee Kraus also discussed the workshop regarding defined contribution plans. Trustee Kraus also reviewed an appellate case decision regarding an employee who wanted service credits counted for a time period in which they were fired, after returning to their position with no back pay or benefits. The Court opined that the time period could not be used toward the service credit total. Trustee Taylor discussed her attendance at the MAPERS Spring Conference. Trustee Taylor reviewed a senate bill that would amend PA 152, the health care insurance hard caps dollar amounts. Trustee Rose provided a MAPERS Spring Conference Report. Trustee Rose attended the breakfast session where trustees can talk in small groups with actuaries, investment consultants and managers, and other service providers to defined retirement plans. Trustee Parker discussed the information provided by the actuary and the new GASB regulations. Trustee Parker stated that the alternative investments were also covered.. Trustee Dedic added that he also discussed his MAPERS Spring Conference Report. Karen Williams reported Spring Conference handouts were available on the MAPERS Website for review. Attorney Ken Lane distributed the amended Public Act 314 for the Trustee Handouts. Attorney Lane distributed the Annual Report Policy, Travel Policy and Fee Disclosure for Board review. Attorney Lane distributed a legislature update for Board review. The update discussed the FOIA amendments that include fees that can be charged, the creation of a FOIA Committee, and fine increases for violation of FOIA. Attorney Lane also discussed the legislation that would amend health insurance hard caps., Employees Retirement System Regular Meeting of June 20, 2013 Page 4 Attorney Ken Lane discussed legislation that would prohibit a retiree from coming back to the City under a contract. Attorney Lane reported that Foster Swift was reviewing and working on amending the Employees Retirement Ordinance. Attorney Lane reported that he sent a letter to the son of Ms. Janet S. Lyman requesting the return of pension overpayment after her death. Mr. Lyman stated to the Retirement Office that the monies were deposited to the bank were seized for an unsecured debt. Attorney Lane had not received a response. Attorney Lane opined that the Employees Retirement System could file a claim with the estate. It was move by Trustee Wood and supported by Trustee Rose to have legal counsel contact the bank to retrieve the overpayment. If the bank does not respond to request or return the overpayment, then the Board should file a claim with the deceased estate. Trustee Kraus suggested that the legal counsel send a strongly worded demand letter to the Bank from the Employees Retirement Board. Trustee Kraus suggested that the letter state that the Trustee of the Estate informed the Board that the monies were seized due to an unsecured debt and that the monies are owed to the Retirement System. Adopted by the following vote: 7 -0 Trustee Dedic informed members that the Retirement Board vendors are not allowed to make political contributions. Attorney Ken Lane reviewed the provisions of Public Act 314 regarding consulting or service providers for the Boards that cannot make contributions to elected officials. Trustee Wood requested a list of service providers for the Retirement Boards that can be distributed to the elected officials. Karen Williams reported that a nominating petition for the Public Service Trustee position had been received. Ms. Williams informed the Board that if only one valid petition is received by the deadline, July 3, 2013, that person would be selected as the Public Service Trustee, per election rules and past practice. Karen Williams reviewed the Minute Master Fees for the calendar year 2012. The fees were listed as not to exceed $3,100. It was moved by Trustee Kraus and supported by Trustee Wood to approve the Minute Master fees for the calendar year 2012. Adopted by the following vote: 7 — 0 Employees Retirement System Regular Meeting of June 20, 2013 Page 5 Attorney Ken Lane provided an update regarding the 911 Center. Attorney Lane sent a letter to Gabriel Roeder Smith and Cheiron requesting information used to provide the valuation. Attorney Lane stated that he was contacted by GRS's attorney that stated that the City of Lansing had received all the information that was available. GRS would not provide its working papers and documents used for the calculation. Cheiron has not responded to the request. Ms. Angela Bennett added that she contacted David Hoffman of Gabriel, Roeder, and Smith with the request for information. Ms. Bennett is waiting for his reply. Trustee Kraus inquired if it would be beneficial to have GRS complete the valuation because the 911 employees have not had their retirement money transferred to Ingham County. Trustee Kraus stated the employees are stressed that there monies have not been transferred and are worried about their retirement. Ms. Bennett stated that employees can retire as County employees prior to the money being received from the City of Lansing. Cheiron was reviewed the 911 transfer and found some issues and discrepancies with the data. Cheiron noted that higher multipliers and base wage may have been used for the Gabriel Roeder Smith calculation. Cheiron provided a new valuation with the updated multipliers and compensation. The difference was approximately $300,000. Ms. Bennett stated there needed to be a reconciliation of the numbers. Trustee Kraus stated that in light of Ms. Bennett information, that the Cheiron valuation data should be used instead of the GRS valuation. Trustee Taylor stated that the ERS Board should move forward with Boomershine Consulting Group to complete the 911 valuation. It was moved by Trustee Wood and supported by Trustee Munroe to provide the 911 Center information to Boomershine Consulting Group for completion of the valuation. Adopted by the following vote: 7-0 Trustee Mark Parker provided an update for Retirement Conference update. Trustee Parker requested that Board members volunteer for assignments on the day of the conference. Volunteers are needed for the registration tables and to assist vendors and speaker. Trustee Parker distributed a sign-up sheet and asked members to take September 12 off from work, if possible. Trustee Rose also requested payment for computer programming and analysis services of $9,540.00 for the Arrivos Pension Software system. Trustee Rose explained that a programmer had to be hired to access the information from the old Unisys Mainframe. Trustee Rose reported that City has agreed to pay for half of the invoice; the retirement boards would split the balance. It was moved by Trustee Rose and supported by Trustee Munroe to pay for computer programming and analysis services for the Arrivos Pension Software of $2,385.00 from the securities lending administrative account out of the monies allocated for the Dewpoint contract. Adopted by the following vote: 7 — 0. Trustee Wood requested to discuss the Financial Health Team Report. Trustee Parker stated that he had a study regarding MERS for members to review. Trustee Dedic stated that the Report was provided by a group to provide recommendations to City of Lansing. The group in general did not study in depth or have much experience with the City of Lansing retirement systems. The group had presentations from Asset Consulting Group and Cheiron. Karen Williams distributed and reviewed the monthly investment report and the Securities Lending Report. The Retirement Board requested that Asset Consulting Group come to the next meeting to discuss its concerns with Invesco. The meeting adjourned at 9:31 a.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 EMPLOYEES RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI July 18, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:33 a.m. Present: Dedic, Kraus, McCaffery, Munroe, Parker, Rose, Taylor, Wood — 8 Absent: Trustee Bernero Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Kraus and supported by Trustee Taylor to approve the Official Minutes of the Employees Retirement System Board Regular Meeting of June 20, 2013. Adopted by the following vote: 8 - 0 Secretary=s Report. 5 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 4 retired. Total active membership: 327. Total deferred: 62. Refunds made since the last regular meeting amounted to $6,824.47. Retirement allowances paid for the month of June 2013, amounted to $1,790,120.04. Total retirement checks printed for the ERS System: 878. 3 death(s), Robert Hutchins, (District Court/Teamster — retired 8/15/1985), died 4/12/2013, age 89, no beneficiary; Dane E. Bandy, (Parks/Teamster — retired 10/17/1992), died 6/12/2013, age 68, beneficiary to receive 100%; LaVern E. Sperry (Parks/Teamster — retired 11/21/1987), died 6/27/2013, age 80, Beng iatto receive 100%. Eligible domestic relations orders received: 2. Domestic relatio or�rs pending: 0. Eligible domestic relations orders certified: 1. : c There were no requests for Regular Age & Service Retirement. c; w Karen Williams reported that Applicant #2013-E0523 has requested a duty 9'sal ity M retirement. The request was pending waiting for requested documentation. rrn .� C cn .91 Karen Williams reported that Applicant#2013-E0524 has requested a non -duty disability retirement. The request was pending waiting for requested documentation. Employees Retirement System Regular Meeting of July 18, 2013 Page 2 Karen Williams reported that the following former member has requested a return of their accumulated contributions: Tara Jewell, FOP 911, $27,982.61 Colin Karmarsky, FOP 911, $6706.74 Laura Walker, Teamster, $16,884.35 (Deferred) It was moved by Trustee Wood and supported by Trustee Munroe to approve the request for the return of accumulated contributions for Ms. Tara Jewell with the understanding that the refund severs any responsibility from the City of Lansing Employees Retirement System to provide any benefit regardless if she is currently employed at the County. Trustee Wood requested information regarding when Ms. Jewell left Ingham County. The Retirement Office did not have a date for separation from Ingham County. Ms. Jewell separated from the City of Lansing and transferred to the county in June 2012. Trustee Wood expressed concern how the return of accumulated contributions would affect the transfer of funds to Ingham County. Attorney Lane opined that as an active City employee cannot request their contributions. Once an employee separates from City employment, the employee can take their contributions. Attorney Lane stated that Ms. Angela Bennett stated that at the time, employees had the opportunity to retire from the City, or take their contributions, or leave their contributions and transfer to the county. Adopted by the following vote: 8 — 0. It was moved by Trustee Wood and supported by Trustee Munroe to approve the request for the return of accumulated contributions for Mr. Colin Karmarksy with the understanding that the refund severs any responsibility from the City of Lansing Employees Retirement System to provide any benefit regardless if she is currently employed at the County. Adopted by the following vote: 8 — 0. It was moved by Trustee Wood and supported by Trustee Munroe to approve the request for the return of accumulated contributions for Ms. Laura Walker. Adopted by the following vote: 8 — 0. Karen Williams distributed registration material for the 2013 Fall Conference, scheduled for September 22-24 in Grand Rapids, Michigan. Employees Retirement System Regular Meeting of July 18, 2013 Page 3 The ERS Ordinance Status, Legislative and Policy updates were moved to next month meeting agenda. Karen Williams distributed election results and reported that there was one nominating petition returned for the Public Service Trustee Election. Mr. Robert Rose was declared the winner of the election and will serve as the Public Service Trustee for the term ending June 30, 2017. It was moved by Trustee Wood and supported by Trustee Taylor to accept the certified election results for Robert Rose as the Public Service Trustee. Adopted by the following vote: 8 -0 Ms. Williams distributed a recommendation letter from Boomershine Consulting Group, Inc. that outlined issues regarding the Plan's definitions of actuarial equivalence. The agenda item was moved to next month's meeting. Ms. Haley Rives, Asset Consulting Group provided an overview of the City of Lansing Employees Retirement System Invesco International Equity fund manager. Ms. Rives discussed that the global equity team experienced a large number of departure and organization changes. Ms. Rives discussed the performance results for the international equity strategy. Asset Consulting Group recommended that the City of Lansing Employees Retirement System began an International Equity fund manager search. It was moved by Trustee Kraus and supported by Trustee Munroe to begin a manager search to replace INVESCO. Adopted by the following vote: 8 — 0. Ms. Haley Rives reviewed the monthly investment report for the month ending June 2013. Trustee Wood requested that quarterly cash flows activity be added to the monthly investment report. Ms. Williams provided an update on Cheiron Actuarial services. Ms. Williams informed the ERS Board that Cheiron has requesting that the pending Eligible Domestic Relations Orders be approved and calculated by the new actuary. Ms. Williams informed legal counsel and Chairperson Dedic regarding the request and asked for the monies back that were paid for the services. Ms. Williams was waiting for the checks so that Boomershine can complete the EDRO requests. Ms. Angela Bennett updated the ERS Board regarding the 911 Center transfer. Ms. Bennett informed the Board that Gabriel, Roeder, Smith was able to confirm the assumptions that were used in the valuation. Ms. Bennett has forwarded this information to Boomershine Consulting Group so that Greg Stump can confirm and update the 911 transfer valuation. Ingham County has requested that MERS have a valuation done for the 911 transfer. Ms. Bennett stated that progress is being made. Employees Retirement System Regular Meeting of July 18, 2013 Page 4 Trustee Mark Parker provided an update for Retirement Conference update. Trustee Parker reported that registration material for the conference was mailed out to all retirees. Karen Williams added that employees will be notified by City Wide Email, department postings and employee online. Trustee Rose updated the ERS Board that the Arrivos Pension Software system is moving forward. Trustee Rose reported that Attorney Ken Lane will review the death check contract. Attorney Ken Lane reported that City Budget recommendation regarding pension reimbursement and its legal issues is under review. Trustee Wood reported that Mr. Howard McCaffery had been reappointed to the ERS Board. Karen Williams distributed and reviewed the Securities Lending Report for the month of June 2013. The meeting adjourned at 9:40 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Scott Dedic, Chairperson Employees' Retirement System TRUSTEES CiTY OF LANSING EMPLOYEES RETHREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI August 22, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:36 a.m. Present: Dedic, Munroe, Parker, Rose, Taylor (9:11), Wood — 5 Absent: Trustee Bernero, Kraus, McCaffery, Taylor Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Parker and supported by Trustee Munroe to appzovehe Official Minutes of the Employees Retirement System Board Regular Meeting otJuh8 2013. There were no public comments. � r � Adopted by the following vote: 5 - 0 r v Secretary=s Report. 2 new member(s), 0 reinstatement(s), 3 refuns), transfers, 0 retired. Total active membership: 326. Total deferred: 61. Rgfunds made since the last regular meeting amounted to $51,573.70. Retirement allowances paid for the month of July 2013, amounted to $1,836,764.51. Total retirement checks printed for the ERS System: 880. 2 death(s), Betty J. Bywater, died 7/23/2013, age 89, spouse of Teamster retiree; Alta M. Hufnagel, died 8/4/2013, age 90, spouse of Executive Plan retiree. Eligible domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Parker to approve the following Regular Age & Service Retirement: Phillip Wilson (Public Service/UAW) — 23 years, 6 months of service credits, age 58, effective 8/17/2013. (with purchase of five years of universal buy in of service credits) Adopted by the following vote: 5 — 0. Employees Retirement System Regular Meeting of August 22, 2013 Page 2 Karen Williams reported that Applicant X12013 -E0523 has submitted his documentation and medical records waiver and authorization. The applicant will be scheduled to see the medical director. Karen Williams reported that Applicant#2013-E0524 has submitted his documentation and medical records waiver and authorization. The applicant will be scheduled to see the medical director. Karen Williams reported that the following former member has requested a return of their accumulated contributions: Michael Schuyler, Police/Civilian $9,367.03 It was moved by Trustee Wood and supported by Trustee Parker to approve the request for the return of accumulated contributions for Ms. Michael Schuyler. Adopted by the following vote: 5 — 0. I,:aren Williams stated that she received requests from Trustee Kraus, Trustee McCaffery to be excused from the ERS August Meeting. It was moved by Trustee Wood and supported by Trustee Parker to excused Trustee McCaffery from the Employees Retirement System August Meeting.. Trustee Wood noted that Trustee Kraus and Trustee Taylor are not required to be excused because they are ex -officio members Adopted by the following vote: 5 -0 Karen Williams distributed registration material for the 2013 Fall Conference, scheduled for September 22-24 in Grand Rapids, Michigan. Attorney Ken Lane reviewed the following policies for the Employees Retirement System Board: Annual Report Policy, Travel Policy and Fee Disclosure Policy. It was moved by Trustee Wood and supported by Trustee Rose to approve the Annual Report Policy, and that it will supersede any prior annual report policy and that it shall be added to the Employees Retirement System Trustee Book. Adopted by the following vote: 5 - 0 Employees Retirement System Regular Meeting of August 22, 2013 Page 3 It was moved by Trustee Wood and supported by Trustee Parker to approve the Travel Policy, and that it will supersede any prior travel policy and that it shall be added to the Employees Retirement System Trustee Book. Adopted by the following vote: 5 -0 It was moved by Trustee Wood and supported by Trustee Parker to approve the Fee Disclosure, and that it will supersede any prior fee disclosure policy and that it shall be added to the Employees Retirement System Trustee Book. Adopted by the following vote: 5 - 0 Trustee Wood provided an overview of the Dedicated Emerging Market Manager Selection of Wells Berkeley Street. Trustee Wood explained that the Joint Boards had an unique opportunity to be an initial investor in this new comingled fund. The fees would be reduced for initial investor and would provide a significant savings of fees over the life of the investment. Trustee Rose agreed that the selection of Wells Berkeley Street would provide an unique opportunity for the ERS Board to be an initial investor in this fund. Trustee Rose explained that Asset Consulting Group had reviewed the companies and suggested a 2% allocation. The recommendation to the Joint Boards was based upon the stringent selection criteria, as has been done in previous investment searches. It was moved by Trustee Wood and supported by Trustee Rose to conditionally hire Wells Berkeley with an allocation of 2% to be recommended by Asset Consulting Group contingent upon the following criteria: the contract must receive a review from legal counsel, the Board must receive written memo from Asset Consulting Group memorializing the discussion and recommendation, and the Board must be able to interview with Wells Berkeley. Adopted by the following vote 5 — 0. The International Value search was moved to pending. Trustee Mark Parker provided an update for Retirement Conference update. Trustee Parker reported that registration confirmation would be mailed out to approximately 360 retirees and employees. Trustee Rose, Employees Retirement System requested extension approval of the Dewpoint Contract for the Tegrit software project to not exceed $15,000 per Retirement Board through June 30, 2014. Employees Retirement System Regular Meeting of August 22, 2013 Page 4 It was moved by Trustee Rose and supported by Trustee Wood to approve the Dewpoint Contract extension not to exceed $15,000 through June 30, 2014. Adopted by the following vote: 5 - 0. Attorney Ken Lane provided an overview of the City of Detroit bankruptcy. Attorney Lane reviewed the State Constitution regarding the vested rights of retirement pensions and the implications of federal bankruptcy on the State Constitution provision. Karen Williams distributed and reviewed the Quarterly Expenses Report for the quarter ending June 2013. Karen Williams distributed a cash flow recommendation memo from Asset Consulting Group for quarterly cash flows. Asset Consulting Group recommendation redemption of $3,000,000 from the Northern Trust S & P 500 Index portfolio and redemption of $3,000,000 from the T. Rowe Price portfolio. It was moved by Trustee Parker and supported by Trustee Taylor to approve quarterly cash flows of $6,000,000 as recommended by Asset Consulting Group Adopted by the following vote: 6 — 0. Karen Williams recommended $10,000 from the Northern Trust Account Securities Lending Account be transferred to the Comerica account for Employees Retirement System quarterly expenses. It was moved by Trustee Wood and supported by Trustee Parker to approve the quarterly cash flow for administrative expenses of $10,000 from the Northern Trust Securities Lending Account. Adopted by the following vote: 6 — 0 The meeting adjourned at 9:19 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Scott Dedic, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF,rHE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREIVUE:IST SYSTEM Regular Meeting August 20, 2013 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 (8:44), Fabus, Hecksel, Oleson, St. Aubin, Woo 6.r--*,� Absent: Trustee Bernero, Kraus Angela Bennett Finance Department; Attorney ^° Others: Karen E. Williams, g p rdq K� � Lane, Clark Hill Law Office (representing the Law Department). -t It was moved by Trustee Hecksel and supported by Trustee Oleson to approeq V6 C Official Minutes of the Police and Fire Retirement Board Meeting of July 16, 2P 3.t. � cr Adopted by the following vote: 5 - 0 Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total: Active membership: 337. 3 death(s), Duane Helium, Fire, died 7/19/2013, age 83, spouse to receive 50%; Robert Manns, Fire, died 7/9/2013, age 70, spouse to receive 50%; Robert Kline, Police, died 7/24/2013, age 79, no beneficiary. Refunds made since the last regular meeting amounted to $18,465.01. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of July, 2013 amounted to $2,204,754.14. Total retirement checks printed for the P&F System: 683. Total retirement checks printed for both systems: 1563 Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 1. Trustee Brad St. Aubin stated that Mr. Steven R. McClean had purchased military service credit, earlier in his career. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the following application for Regular Age and Service Retirement: Steven R. McClean, Police Department, 25 years of service credits, age 45, effective August 15, 2013. (with 2 years of military service credit purchase) Regular Meeting August 20, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the following application for Regular Age and Service Retirement (cont.): Brian F. Quillen, Fire Department, 25 years of service credits, age 53, effective August 15, 2013. (with 2 years of military service credit purchase) Adopted by the following vote: 6 — 0. Karen Williams reported that Applicant #2013-F0716 has submitted documents requested by the disability subcommittee to be forwarded to the medical director. Karen Williams reported that Applicant #2013-170717 has submitted documents requested by the disability subcommittee to be forwarded to the medical director. Ms. Williams reported that Applicant #2013 —P0416 has seen the doctor. The disability subcommittee is awaiting the medical report. There were no requests for accumulated contributions. Trustee St. Aubin informed the Board that he had been notified by Trustee Kraus that she would not be at the meeting. It was moved by Trustee Kraus and supported by Trustee Wood to excuse Trustee Edward Benson from the August Police and Fire Retirement Board Meeting. Adopted by the following vote: 5 — 0 Karen Williams distributed registration materials for MAPERS Fall Conference in Grand Rapids, September 22-24. Ms. Williams requested that members who still wished to attend should contact the Retirement Office. Attorney Ken Lane provided an update of the PBI death check contract. Attorney Lane negotiated and reviewed the contract. He indicated that the Board needed to select the desired options for the death check implementation. Karen Williams updated the Police and Fire Retirement Office regarding the Retirement Conference. The Conference is scheduled for Thursday, September 12 at the Lansing Center. Karen Williams reviewed the itinerary, food arrangements and parking. Mr. Benson arrived to the meeting. Regular Meeting August 20, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Williams indicated that there were approximately 350 people registered for the conference. Trustee St. Aubin will verify the food selections and sign the parking agreement. Ms. Williams requested assistance in assembling the Retirement Conference folders on September 6, 2013. Attorney Ken Lane reviewed the following policies for the Police and Fire Retirement Board: Investment Policy Statement, Annual Report Policy, Travel Policy and Fee Disclosure Policy. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the new Investment Policy Statement and that it will supersede any prior investment policy statement, and shall be added to the Police and Fire Retirement Trustee Book. Adopted by the following vote: 6 - 0 It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Annual Report Policy, and that it will supersede any prior annual report policy and that it shall be added to the Police and Fire Retirement Trustee Book. Adopted by the following vote: 6 - 0 It was moved by Trustee Hecksel and supported by Trustee Wood to approve the Travel Policy, and that it will supersede any prior travel policy and that it shall be added to the Police and Fire Retirement Trustee Book. Adopted by the following vote: 6 -0 It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Fee Disclosure, and that it will supersede any prior fee disclosure policy and that it shall be added to the Police and Fire Retirement Trustee Book. Adopted by the following vote: 6 - 0 Attorney Ken Lane distributed a policy regarding service credit calculation for the Police and Fire Board review. Attorney Lane stated that the policy would provide clarification for how service credits are calculated. Regular Meeting August 20, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Fabus and supported by Trustee Wood to approve the service credit calculation Policy and that it will supersede any prior fee disclosure policy and that it shall be added to the Police and Fire Retirement Trustee Book. Adopted by the following vote: 6 - 0 Trustee Wood requested a list of Retirement Board investment manager and vendors for elected officials for contribution purposes, in order to comply with new provision of Public Act 314. The disability subcommittee will review the Duty Disability list to determine what retirees are re-evaluated. The Boomershine Consulting Group Actuarial Recommendations Letter was moved to the Joint Board meeting. Karen Williams distributed and reviewed the Quarterly Expense Report for the Policy and Fire Retirement Board the period ending June 30, 2013. Trustee Benson requested information regarding investment returns for the quarterly. Mr. George Tarlas provided an overview of investment results. Karen Williams distributed a cash flow recommendation memo from Asset Consulting Group for quarterly cash flows. Asset Consulting Group recommendation redemption of $3,500,000 from the Northern Trust S & P 500 Index portfolio and redemption of $3,500,000 from the T. Rowe Price portfolio. It was moved by Trustee Wood and supported by Trustee Oleson to approve quarterly cash flows of $7,000,000 as recommended by Asset Consulting Group Adopted by the following vote: 6 — 0. Karen Williams recommended $10,000 from the Northern Trust Account Securities Lending Account be transferred to the Comerica account for Police and Fire Retirement System quarterly expenses. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the quarterly cash flow for administrative expenses of $10,000 from the Northern Trust Securities Lending Account. Adopted by the following vote: 6 — 0 Attorney Ken Lane provided an overview of the City of Detroit bankruptcy. Attorney Lane reviewed the State Constitution regarding the vested rights of retirement pensions and the implications of federal bankruptcy on the State Constitution provision. Trustee St. Aubin requested that he be excused from the Joint Retirement Board meeting. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:22 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT S' STE-EM and EMPLOYEES RET IREMENT SYS` tffiI MEETING MINUTES -Amended Joint Meeting Council Conference Room 10th Floor City Hall Lansing MI August 20, 2013 Tuesday, 9:30 a.m. The meeting was called to order at 9:36 a.m. Zp ,13 G') N A quorum of the Police and Fire Retirement Board was present. c-) Trustees present: (Police & Fire), Benson, Fabus (9:38), Hecksel, Oleson, Wood —��' . CD St. Aubin was excused. (ERS), Munroe, Parker, Rose (9:39), Wood — 4. Other presents: Angela Bennett, Karen Williams, Finance Department; Ken Lane, Bark Hill Law Office (representing the City Attorney's Office); Patrick Flanagan, Brian Duhn, Jivko Chederov, Northern Trust; Greg Stump, Boomershine Consulting Group; George Tarlas, Asset Consulting Group. Mr. Patrick Flanagan provided introductions of the Investment team, a Northern Trust Update and Custody Overview. Mr. Brian Duhn presented a market update and reviewed the portfolio performance for the Employees Retirement System and the Police and Fire Retirement System. Mr. Jivko Chederov provided an update of the Securities Lending program. Mr. Greg Stump, Boomershine Consulting Group discussed issues regarding the retirement plan's definition of Actuarial Equivalence. Mr. Stump provided a background of the concept and provided recommendations for the Employees Retirement System Board and the Police and Fire Board's consideration. Mr. Greg Stump provided an update of the 911 Transfer. The Employees Retirement System Board deferred the Cash Flow Withdrawal request and International Value Search to their Board meeting, due to lack of quorum. Mr. George Tarlas provided an investment performance review for the City of Lansing Joint Retirement Boards for the Periods Ending June 30, 2013. Mr. Tarlas reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Joint Meeting COUncil Conference Roorn 10th Floor City Hall Lansing, Ml August 20, 2013 Tuesday, 9:30 a.m. Mr. George Tarlas distribution dedicated Emerging Market Candidates information for both retirement boards. Mr. Tarlas reviewed the candidates and recommended that the Board consider Wells Berkeley Street as the Emerging Market selection to meet the timeline. Mr. Tarlas informed the Board that Wells Berkeley Street will launch a commingled funds vehicle in September, and as initial seed investors, fees for the investment would be discounted to 63 basis points. Mr. Tarlas explained that this one- time offering is an opportunity that is not available with the other firms. Mr. Tarlas stated that there would be an approximate difference of $30,000 in fees with the discount. Trustee Hecksel inquired about the allocation to Wells Berkeley. Mr. Tarlas explained the allocation would be at 2%. Trustee Wood expressed caution that the Board did not have interviews before the selection. Trustee Wood explained that an exception was warranted due to the time frame, the small allocation and the fee reduction benefit to the fund. Trustee Wood requested a written recommendation Asset Consulting Group that memorialized the discussion and processed used for the Board's selection. Trustee Fabus agreed that an exception to the interview of all candidates should be made. Trustee Fabus stated that the Board hired Asset Consulting Group to provide recommendations and suggestions to the Board. It was moved by Trustee Wood and supported by Trustee Hecksel to conditionally hire Wells Berkeley contingent upon the following criteria: the contract must receive a review from legal counsel, the Board must receive written memo from Asset Consulting Group memorializing the discussion and recommendation, and the Board must be able to interview with Wells Berkeley. Trustee Hecksel offered a friendly amendment accepted by Trustee Wood to set the allocation at 2% to be recommended by Asset Consulting Group Trustee Benson had concerns regarding the transparency of the process and expressed caution that the Police and Fire Board was not going through their usual process of interviewing all of the candidates first. Adopted by the following vote: 4 — 1. There were no public comments. Trustee Rose, Employees Retirement System requested extension approval of the Dewpoint Contract for the Tegrit software project to not exceed $15,000 per Retirement Board through June 30, 2014. It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Dewpoint Contract extension not to exceed $15,000. Adopted by the following vote: 5 - 0. It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 5 - 0. The Meeting adjourned at 12:02 p.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Employees Retirement System Brad St. Aubin, Chairperson Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM-amended Regular Meeting September 19, 2013 City Council Conference, Room Thursday, 8:30 a.m. 10th Floor, City Hall= r� Lansing, MI c-� � co C7 n-1 The Board met in regular 5,ession and was called to order at 8:37 a.m. - M C-) Trustee Rose presided over the meeting. M. -- Present: Kraus, McCaffery, Munroe, Parker, Rose, Wood — 6 Absent: Trustee Bernero, Dedic, Taylor Others: Karen E. Williams, 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 Joint Minutes of the Police and Fire Retirement System and the Employees Retirement System Board Regular Meeting of August 20, 2013. Adopted by the following vote: 6 — 0 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 August 22, 2013. Adopted by the following vote: 6 — 0 There were no public comments. Secretary=s Report. 0 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 0 retired. Total active membership: 325. Total deferred: 60. Refunds made since the last regular meeting amounted to $9,367.03. Retirement allowances paid for the month of August 2013, amounted to $1,789,071.19. Total retirement checks printed for the ERS System: 876. 0 death(s). Eligible domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Employees Retirement System, Regular Meeting of September 19, 2013 Page 2 It was moved by Trustee Kraus and supported by Trustee Wood to approve the following requests for Regular Age and Service Retirement (cont.): Dave White (Public Service/Teamster) — 28 years, 1 month of service credits, age 52, effective September 14, 2013. Douglas L. Hulbert (Public Service/UAW) — 16 years, 6 months of service credits, age 63, effective September 21, 2013. John E. Kersjes (Public Service/UAW) — 25 years of service credits, age 51, effective September 21, 2013 (with purchase of 1 year of universal service credits) Richard D. Stoudt (Public Service/UAW) — 26 years of service credits, age 58, effective September 27, 2013 Marc Snyder, (Public Service/UAW) — 34 years of service , age 54, effective October 1, 2013 (with 10 years, 7 months of reciprocal retirement act service included David E. Gladstone, (Police-Civilian/Teamster) — 26 years, 5 months of service credits, effective October 2, 2013, age 54 (with purchase of 5 years of universal service credits) Adopted by the following vote: 6 — 0. Karen Williams reported that Applicant #2013-E0523 has submitted his documentation and medical records waiver and authorization. The applicant will be scheduled to see the medical director. Karen Williams reported that Applicant#2013-E0524 has submitted his documentation and medical records waiver and authorization. The applicant will be scheduled to see the medical director. Karen Williams reported that the following former member has requested a return of their accumulated contributions: Beth Rios, Police/Civilian (Deferred), $78,483.52 Mark Leonard, Law/Teamster. $26,503.69 It was moved by Trustee Wood and supported by Trustee Parker to approve the request for the return of accumulated contributions for Ms. Beth Rios and Mr. Mark Leonard. Adopted by the following vote: 6 — 0. *Mr. Richard Stoudt rescinded his retirement application 9/24/2013 Employees Retirement System Regular Meeting of September 19, 2013 Page 3 Karen Williams reported that she had received requests from Trustee Dedic, Trustee Taylor to be excused from the ERS September Meeting. It was moved by Trustee Kraus and supported by Trustee Parker to excused Trustee Dedic from the Employees Retirement System September Meeting. Trustee Taylor is not required to be excused because she is an ex -officio member. Adopted by the following vote: 6 -0. Karen Williams discussed registration material for the 2013 Fall Conference, scheduled for September 22-24 in Grand Rapids, Michigan. Karen Williams requested that members who wished to attend the NCPERS and International Conferences to contact the Retirement Office for registration. Attorney Ken Lane distributed updated policies for the Trustee Handout. Attorney Lane provided a list of Retirement Board investment managers and vendors for elected officials for contribution purposes, in order to comply with new provision of Public Act 314. Attorney Lane spoke with Attorney Paul Novak regarding the securities fraud monitoring. Milberg uses the VERITAS system for all of its clients' data, except for the City of Lansing and another client. Milberg has requested that all clients' data use the VERITAS system. The Board requested that Attorney Lane invite Attorney Paul Novak to a future meet to discuss Milberg's request that the City of Lansing Retirement Board use the VERITAS system. Trustee Wood notified the Employees Retirement System Board regarding the City Attorney's request to add a new law firm to the City Council's preapproved list. One of the law firms was for securities recovery. Trustee Wood refused the addition of the securities recovery firm because the Board had already interviewed and selected firms for securities recovery. The City Attorney also inquired if the Retirement Boards would like to interview the law firm to add them to the preapproved list. The Employees Retirement System Board declined the request to interview the new law firm. Karen Williams provided a preliminary report regarding the Retirement Conference. The Conference had approximately 275 people who attended, mainly retirees. Karen Williams indicated a full report would be available at the October meeting. Trustee Rose provided an update of the Tegrit Pension Software project. Trustee Rose stated that much of the data has been received. The Retirement Office is providing a manual upload of data in the retirement files. Trustee Rose stated that the final contract for the PBI death check should be ready. Trustee Wood explained that the Employees Retirement System received information for the International Value Search from Asset Consulting Group. The Employees Retirement System requested that George Tarlas come to a future meeting to review the information. The meeting adjourned at 9:19 a.m. Minutes approved on Scott Dedic, Chairperson Employees' Retirement System Angela Bennett, Secretary Employees' Retirement System *Mr. Richard Stoudt rescinded his retirement application 9/24/2013 OFFICIAL PROCEEDINGS OF THE BOAR® OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM -Amended Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI October 17, 2013 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:34 a.m. Present: Dedic, Kraus, McCaffery, Parker, Rose, Taylor, Wood — 7 Absent: Trustee Bernero, Munroe Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). r- It was moved by Trustee Kraus and supported by Trustee McCaffery to app�©ve!;4fie Official Joint Minutes of the Employees Retirement System Board Regular M&6tiryg3of September 19, 2013, as amended. Adopted by the following vote: 7 — 0 _ _- ��� 171 C_ rn There were no public comments. - Secretary=s Report. 4 new member(s), 0 reinstatement(s), 2 refund(s), 0 transfers, 3 retired. Total active membership: 324. Total deferred: 59. 2 death(s), Naomi J. Case, (NonBargaining, retired 8/14/1980), died 9/19/2013, age 85, no beneficiary; Elwin Fulkerson (NonBargaining, retired 7/25/1981), died 9/26/2013, age 87, beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $104,987.21. Retirement allowances paid for the month of September 2013, amounted to $1,912,488.66. Total retirement checks printed for the ERS System: 883. Eligible domestic relations orders received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Parker to approve the following Regular Age & Service Retirement: Jeffrey L. Mills (Finance/UAW) — 20 years, 5 months of service credits, age 61, effective October 1, 2013. Adopted by the following vote: 7-0 Employees Retirement System Regular Meeting of October 17, 2013 Mage 2 It was moved by Trustee Wood and supported by Trustee Parker to approve the following Regular Age & Service Retirement: John Busley (Public Service/Teamster) — 17 years, 6 months of service credits, age 58, effective October 25, 2013. Adopted by the following vote: 7 -0 It was moved by Trustee Kraus and supported by Trustee Parker to approve the following Regular Age & Service Retirement: Edgar Loring (Public Service/UAW) — 25 years, 2 months of service credits, age 52, effective November 1, 2013. Adopted by the following vote: 7 — 0 It was moved by Trustee Kraus and supported by Trustee Parker to approve the following Regular Age & Service Retirement: Robert J. Rose (Public Service/Teamster) — 26 years, 7 months of service credits, age 55, effective November 15, 2013. Adopted by the following vote: 6 - 0 Karen Williams notified the Employees Retirement System Board that Mr. Richard D. Stoudt rescinded his retirement application that was approved at the September meeting. It was moved by Trustee Wood and supported by Trustee Parker to rescind the retirement application of Mr. Richard D. Stoudt and that the September meeting minutes are amended with a footnote. Adopted by the following vote: 7 - 0 Karen Williams reported that Applicant #2013-E0523 was scheduled to see the medical director. Karen Williams reported that Applicant#2013-E0524 was scheduled to see the medical director. 1 Mr. Edgar Loring rescinded his retirement application for November 1, 2013 and resubmitted the application of November 15, 2013 Karen Williams reported that Applicant #2013-E1017 has applied for Non -Duty disability retirement. Applicant #2013-E1017 was referred to the disability subcommittee. Employees Retirement System Regular Meeting of October 17, 2013 Page 3 Karen Williams reported that the following former member has requested a return of their accumulated contributions: Shane Silsby, Plan ning/Non Bargaining (Deferred), $20,311.32 It was moved by Trustee Wood and supported by Trustee Parker to approve the request for the return of accumulated contributions for Mr. Shane Silsby. Adopted by the following vote: 7 — 0. Karen Williams reported that she had received requests from Trustee Carol Munroe to be excused from the ERS October Meeting. It was moved by Trustee Wood and supported by Trustee Parker to excused Trustee Munroe from the Employees Retirement System September Meeting. Adopted by the following vote: 7 -0. Trustee Taylor attended the MAPERS Fall Conference Reports. Trustee Taylor informed the ERS Board that there were a variety of workshops on the Affordable Care Act and legislative updates. Trustee Dedic reported that he also attended the MAPERS Fall Conference Reports. Trustee Dedic concurred with Trustee Taylor regarding the information provided regarding the Affordable Care act. Karen Williams reported that annual membership dues for the following organizations: MAPERS, $100; NCPERS, $250; and IFEBP, $810 (split between ERS and Police and Fire Retirement Boards) It was moved by Trustee Wood and supported by Trustee Taylor to approve payment for the MAPERS annual membership of $100, and the IFEBP annual membership of $405, and the fee would be paid from the Securities Lending Administrative account. Adopted by the following vote: 7 — 0 Attorney Ken Lane distributed an updated EDRO policy for approval regarding the use of the Plan's funding assumptions for the purposes of Actuarial Equivalence in EDRO calculations. This policy was recommended by the Board's Actuary and would result in smaller adjustments to the member's or alternate payee's benefits. Employees Retirement System Regular Meeting of October 17, 2013 Page 4 It was moved by Trustee Wood and supported by Trustee Kraus to approve the updated EDRO Payment and Calculation Policy and that this policy shall be placed in the Trustee Handbook. Adopted by the following vote: 7 -0 Attorney Lane distributed an updated Investment Policy and a Vendor Fee Disclosure Policy. Attorney Lane updated Board that Attorney Paul Novak will attend to the November Joint Meeting to discuss Milberg's request that the City of Lansing Retirement Board use the VERITAS system. Attorney Lane informed the ERS Board regarding a former member who was now a member of the Police and Fire Retirement System. This former member was a Parks police officer, under the Employees Retirement System. When the Parks Police division was eliminated in 1992, the former member froze her six years of service and transferred to the Lansing Police Department under a written agreement with the City. The former member was not vested and has been a Lansing Police Officer since her transfer. At the time, the member was informed that she could use the Reciprocal Retirement Act for both systems. Attorney Lane will research an equitable way to return the accumulated contributions from the Employees Retirement System. Trustee Kraus indicated another former retired member had a similar inquiry regarding the accumulated contributions Attorney Lane notified the ERS Board that Foster Swift was close to completing the Teamster 214 language to the Ordinance. Karen Williams distributed a posting an election to fill the remaining term for Robert Rose's position as Public Service Trustee on the Employees Retirement System Board. Trustee Rose's term would expire June 30, 2017. Ms. Williams reviewed dates for the return of nominating petitions, dates for the primary and general elections. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Public Service Trustee position for the Employees Retirement System Board. Adopted by the following vote: 7 - 0 Karen Williams reported that ERS Board generally reviews and accepts the Northern Trust Custodian Bank SAS 70 Report each year. Employees Retirement System Regular Meeting of October 17, 2013 Page 5 The ERS Board will review the report and discuss at the December meeting. Trustee Dedic referred the SAS 70 report to pending. Ms. Angela Bennett provided an update of the 911 Center Dispatch Transfer to Ingham County. Ms. Bennett informed the Board that there has not been an agreement regarding the amount to be transferred based upon the actuarial valuation of December 31, 2011. During the process, the Joint Board had an actuarial experience study. The actuarial assumption changes recommended by the Boards Actuary were approved for the actuarial valuation of December 31, 2011. Ingham County has concern regarding the effect on the assumption changes on the transfer amount. Ms. Bennett discussed the details and the calculation to be used for the 911 Center Dispatch Transfer agreement with the ERS Board. Ingham County requested that Ms. Bennett ask the Board to approve the transfer of retirement funds based the actuarial valuation of December 31, 2011 without the assumption changes. Ms. Bennett recommended that the ERS Board used the approved Actuarial valuation that would include the assumption changes. Trustee Wood reviewed the process regarding the transfer of retirement funds. Trustee Wood stated that the ERS Board would make a recommendation to the City Council approval. Trustee Wood expressed concern that the funding transferred by consistent with the recommendation for the Board's Actuary. Attorney Lane stated that Public Act 314 requires that before any official transfer is made, a supplemental actuarial report must be received by the Board's Actuary. Trustee Kraus discussed the problems with the initial valuation from the former Board actuary. Trustee Kraus stated that as a fiduciary, her primary focus was the Employees Retirement System. Trustee Kraus strongly supported that the ERS Board concur with the amount consistent with its actuarial report and experience study. It was moved by Trustee Kraus and supported by Trustee Wood that the Employees Retirement Board not accept any 911 Dispatch Transfer amount to Ingham County that is not consistent with the ERS Board's actuarial valuation report or does not include the Board's actuarial experience study. Adopted by the following vote: 7 - 0 Karen Williams distributed financial report regarding the Retirement Conference. Ms. Williams reviewed the budget and final expenses. Mr. Parker provided tabulated results of the conference surveys. Trustee Rose provided an update of the Tegrit Pension Software project. Trustee Rose stated that he will meet with Angela Bennett, Dewpoint, Tegrit and the Board Chairpersons to discussion the transition to another Board Project Sponsor due to Trustee Rose's retirement. Karen Williams notified the Employees Retirement System that Mr. George Tarlas will come to the November member to discuss the International Value Search from Asset Consulting Group. Karen Williams informed the ERS Board that the Wasatch Investment fund would like a wire authorization form completed for money transfer. The Board agreed that Trustee Kraus and Randy Endsley, accounting manager, would provide authorizations for money transfer from Wasatch. Karen Williams reviewed the Monthly Investment and Securities Lending Report for the period ending September 30, 2013. The meeting adjourned at 9:19 a.m. Minutes approved on Scott Dedic, Chairperson Employees' Retirement System Angela Bennett, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting November 19, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:34 a.m. Present: Trustees Benson, Hecksel, Kraus (8:37 ), Oleson, St. Aubin, Wo& 6 Absent: Trustee Bernero, Fabus rr. �_rl Others: Karen E. Williams, Angela Bennett, Finance Department; Attorne, Ken Lane, Clark Hill Law Office (representing the Law Department). fre It was moved by Trustee Hecksel and supported by Trustee Oleson to appro ;then Official Minutes of the Police and Fire Retirement Board Meeting of Octobd. 15F- 2103. Adopted by the following vote: 5 — 0 Secretary's Report. 0 new fire member(s), 6 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 337. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of Ocotber 2013 amounted to $2,208,761.08. Total retirement checks printed for the P&F System: 690. Total retirement checks printed for both systems: 1572 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 Wood to approve the following application for Regular Age and Service Retirement: Jorge L. Gomez, Police Department, 25 years of service credits, age 48, effective December 14, 2013. Adopted by the following vote: 5 - 0 Trustee Kraus arrived to the meeting. Karen Williams reported that Applicant #2013-P1015 was sent a letter requesting documentation. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI November 19, 2013 Tuesday, 8:30 a.m. Page Two Karen Williams reported that Applicant #2013-P0917 has been scheduled to see the medical director. Ms. Williams notified the Board that the medical report for Applicant #2013 —F0716 has been received for review by the disability subcommittee. Ms. Williams reported that Applicant #2013-F0717 has seen the doctor and the Disability subcommittee is waiting for the medical report. The Board recessed at 8:38 a.m to allow the disability subcommittee to met and review the medical report for Applicant #2013-F0716. The Board resumed at 8:40 a.m. Trustee Hecksel reported that the disability subcommittee met and reviewed the medical report. The disability subcommittee recommended to concur with the medical director and approve the disability retirement of Applicant #2013-F0716. It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the disability retirement for Applicant #2013-F0716. Adopted by the following vote: 6 — 0 Trustee St. Aubin notified the Board that Trustee Fabus requested an excuse from the November meeting. Trustee St. Aubin also reported that the Board loss its quorum at the October meeting and was unable to excuse Trustee Benson and Trustee Hecksel. It was moved by Trustee Wood and supported by Trustee Oleson to excuse Trustee Fabus from the November Police and Fire Board Meeting, and to excuse Trustee Benson and Hecksel from the October Police and Fire Board Meeting. Adopted by the following vote: 6 — 0 Trustee Oleson provided a report on the NCPERS Public Safety Conference. Trustee Oleson reviewed the workshops that he attended, that included the Detroit Bankruptcy, active management (Alpha), GASB rules, Emerging Markets (Global), and Social Security. Trustee Oleson enjoyed networking with people from other retirement systems and thought the Conference was very good. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI November 19, 2013 Tuesday, 8:30 a.m. Page Three Karen Williams reported that it was time to renew the annual memberships of MAPERS ($100), NCPERS, ($250), and IFEBP ($405). The membership fees are paid from the Board's administrative budget. It was moved by Trustee Olson and supported by Trustee Hecksel to approve the annual membership fees for MAPERS, NCPERS and IFEBP and pay the monies from the Board's administrative budget. Adopted by the following vote: 6 -0. Karen Williams provided an update of the the Arrivos Pension Software update. Tegrit has received access to the IFAS data base and will review the information. The information should help the project move forward. Attorney Ken Lane distributed updated policies for the Trustee Handout. Attorney Lane reviewed the EDRO Policy that was a recommendation from the Actuary regarding the calculation of EDROs. Attorney Lane also reviewed the Fee Policy for investment managers. It was moved by Trustee Kraus and supported by Trustee Oleson to approve the EDRO Policy and that it is placed in the Trustee Handbook. Adopted by the following vote: 6 — 0 Attorney Lane notified the Board regarding Ms. Victoria Nevins inquiry. Ms. Nevins was a member of the Park Police of the Employees Retirement System (ERS). When the City of Lansing eliminated the Park Police in 1992, employees were given preferential hiring and allowed to purchase service in the Police and Fire Retirement System, freeze the Employees Retirement System service or receive a refund of accumulated contributions. At the time, Ms. Nevins chose to freeze her service. She was informed in error that she could use the ERS time to qualify for Police and Fire Retirement. Attorney Lane opined that a Police and Fire member could not use time from the ERS system to qualify for retirement. The Employees Retirement System could agree to refund her accumulated contribution because of the special circumstances that Ms. Nevins froze her ERS service. Ms Nevins has inquiried if the Board could allow her to convert her ERS time to acquire time in the Police and Fire Retirement System. Attorney Lane opined that the request was a matter for collective bargaining. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI November 19, 2013 Tuesday, 8:30 a.m. Page Four Attorney Lane informed the Board that he wished to discuss a confidential legal opinion under attorney-client privilege. It was moved by Trustee Kraus and supported by Trustee Wood to go into closed session so that the Board discuss a confidential legal opinion. Adopted by the following roll call vote: 6 — 0 Yes: Benson, Hecksel, Kraus, Oleson, St. Aubin, Wood. No: 0 The Board went into closed session at 9:01 a.m. The Board resumed session at 9:08 a.m. Karen Williams reviewed the Election process for the Fire Trustee position. Karen Williams distribute and discussed the election posting for absentee ballots and voting procedures within City Hall. Trustee Olson and Trustee Kraus volunteer to assist with counting of the ballots for the general election. Attorney Lane stated that the procedures were consistent with the Board's policies. It was moved by Trustee Oleson and supported by Trustee Kraus to proceed with the Election Posting and Procedures for the Fire Trustee Position to be held, if required, December 10 and December 11. Adopted by the following vote: 6 — 0. Karen Williams informed the Police and Fire Board that the SAS 70 report was received at last month's meeting. The SAS 70 Report was reviewed by legal counsel and found to be acceptable. Attorney Ken Lane stated that he also sends the report to Asset Consulting Group for review. It was moved by Trustee Wood and supported by Trustee Benson to accept the SAS 70 report based upon the recommendation of legal counsel and contingent upon the review by Asset Consulting Group. Adopted by the following vote: 6 — 0. Karen Williams reviewed the 2014 Schedule of Meeting. The Police and Fire Board moved its May meeting to May 13 and its September Meeting to September 23. Ms. Angela Bennett reported to the Police and Fire Board that on November 1, 2013, $11,000,00 was transferred by the City of Lansing to the Police and Fire Retirement System for the 2012 contribution. Trustee Kraus requested if the contribution could be made on November 2, instead of November 1. Trustee Kraus stated that she would rather move the money on the first of month, instead of the end of the month. It was moved by Trustee Wood and supported by Trustee Hecksel to accept the 2012 Police and Fire Pension Contribution. Adopted by the following vote: 6-0. Karen Williams distributed and reviewed Quarterly Expense Report and Monthly Security Lending Report. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:41 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 C_ November 21,2b1 � C) Thursday, 8:15 am.` The Board met in regular session and was called to order at 8:24 a.m.?' Present: Dedic, Kraus, Munroe, Parker, Taylor (8:26), Wood — 6 Absent: Trustee Bernero, McCaffery Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office); Victoria Nevins, Lansing Police Officer; Timothy J. Dolehanty, Jill Rhode, Ingham County It was moved by Trustee Wood and supported by Trustee Parker to approve the Official Joint Minutes of the Employees Retirement System Board Regular Meeting of October 17, 2013, as amended. Adopted by the following vote: 5 — 0 Mr. Timothy Dolehanty, Ingham County Controller informed the Employees Retirement System Board that he was at the meeting for the 911 Center Dispatch discussions. Ms. Victoria Nevins addressed the Employees Retirement System Board regarding her service in the ERS system as a park police officer. Ms. Nevins requested the Board's consideration to allow her to convert her ERS time to use toward her Police and Fire Retirement. In 1992, Ms. Nevins froze her ERS time because she was informed that she could use the service to qualify for her retirement from the Police Department. Ms. Nevins is now unable to use the ERS time and must work additional years to qualify for her pension. Secretary's Report. 0 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 2 retired. Total active membership: 320. Total deferred: 60. 2 death(s), Howard J. Martin, died 10/31/2013, age 91,' spouse of Teamster 580 CTP member; Mable Huddelson, died 11/7/2013, age 86, spouse of NonBargaining member. Refunds made since the last regular meeting amounted to $20,311.32. Retirement allowances paid for the month of October 2013, amounted to $1,806,658.97. Total retirement checks printed for the ERS System: 882. Eligible domestic relations orders received: 1. Domestic relations orders pending: 1. Eligible domestic relations orders certified- 1. Employees Retirement System Regular Meeting of November 21, 2013 Page 2 It was moved by Trustee Wood and supported by Trustee Taylor to approve the following Regular Age & Service Retirement: Dayne Miller (Public Service/UAW) — 10 years, 7 months of service credits, age 65, effective November 15, 2013. Adopted by the following vote: 6-0 Karen Williams informed the Board that Mr. Edgar Loring requested that his effective date of retirement be changed from November 1 to November 15. It was moved by Trustee Wood and supported by Trustee Munroe to approve the following Regular Age & Service retirement: Edgar Loring (Public Service/UAW) — 25 years, 2 months of service credits, age 52, effective November 15, 2013. Adopted by the following vote: 6 -0 Trustee Wood requested that a footnote be added to the October regular minutes regarding the change in retirement dates for Mr. Loring. It was moved by Trustee Wood and supported by Trustee Taylor to approve the following Regular Age & Service Retirement: Chaundra Pratt (District Court Teamster) — 23 years, 1 month of service credits, age 43, effective December 9, 2013. Adopted by the following vote: 6 — 0 Karen Williams reported that Applicant #2013-E0523 had seen the Medical Director. The Board is waiting for the medical report. Karen Williams reported that Applicant #2013-E1017 has been sent a letter requesting documentation and medical waiver form. Karen Williams reported that Applicant #2013-E1121 had requested a duty disability retirement. The applicant was a re-evaluation and is no longer employed by the City of Lansing. Attorney Ken Lane reported that the Retirement Office provided him the information regarding Applicant #2013-E1121 request. Attorney Lane opined that the applicant must be a member of the Employees Retirement System to be considered for duty disability. The applicant terminated employment. Employees Retirement System Regular Meeting of November 21, 2013 Page 3 Karen Williams reported that Applicant #2013-E1121 had requested a duty disability retirement. The application request #2013-E1122 was referred to committee. Karen Williams reported that Applicant #2013-E0524 had seen the Medical Director and the Board is waiting for the medical report. There were no requests for refunds of accumulated contributions. It was moved by Trustee Parker and supported by Trustee Wood to excuse Trustee McCaffery from the Employees Retirement System November Meeting. Adopted by the following vote: 6-0. Attorney Ken Lane reviewed the options available to Ms. Nevins regarding her service time with the Employees Retirement System (ERS). Attorney Lane explained that Ms. Nevins could not use the reciprocal retirement act to combine her ERS time with the Police and Fire service to retire. Attorney Lane also discussed that he met with Ms. Nevins and discussed the possibility of unfreezing her service time and converting the time for the Police and Fire system. Attorney Lane opined that the conversion of service time was an issue for the Police collective bargaining. Attorney Lane explained that the ERS Board did have the authority to make an exception to the Retirement Ordinance and allow Ms. Nevins to unfreeze her time and request her accumulated contributions based upon the unique situation. It was moved by Trustee Wood and supported by Trustee Kraus to allow Ms. Nevins to unfreeze her service time with the Employees Retirement System and request her accumulated contributions, based upon legal counsel recommendation. Adopted by the following vote: 6 — 0 Attorney Ken Lane distributed the EDRO calculation policy for the Trustee Books and reviewed the Vendor Fee Disclosure Policy. Attorney Lane informed the Board that he wished to discuss a confidential legal opinion under attorney-client privilege. It was moved by Trustee Kraus and supported by Trustee Wood to go into closed session so that the Board could discuss a confidential legal opinion. Adopted by the following roll call vote: 6 — 0 Yes: Dedic, Kraus, Munroe, Parker, Taylor, Wood. No: 0 Employees Retirement System Regular Meeting of November 21, 2013 Page 4 The Board went into closed session at 8:46 a.m. The Board resumed session at 8:54 a.m. It was moved by Trustee Kraus and supported by Trustee Wood to nominate and accept Trustee Mark Parker as Vice Chair for the Employees Retirement System Board. Trustee Parker accepted the nomination. Adopted by the following vote: 6 - 0 Karen Williams reviewed the Election process for the Public Service position. Karen Williams distributed and discussed the election posting for absentee ballots and voting procedures within City Hall. It was moved by Trustee Wood and supported by Trustee Parker to move forward with the election procedure as discussed by the Retirement Analyst. Adopted by the following vote: 6 — 0 Karen Williams reviewed the dates for 2014 Meeting Schedule. Karen Williams reported that the Police and Fire System adjusted their May and September meeting Trustee Dedic requested that the 2014 Meeting Schedule agenda item be placed on pending to allow members to review their calendars. Ms. Angela Bennett reported that November 1, 2013, $8,600,000 was transferred by the City of Lansing for the 2012 contribution. The amount was $600,000 less than $9,200,000 projected amount until the 2012 actuarial valuation has been finalized. It was moved by Trustee Wood and supported by Trustee Parker to accept the City Contribution of $8,600,000 and the remainder of the contribution when the 2012 actuarial valuation has been finalized. Adopted by the following vote: 6 — 0 Trustee Dedic moved up the 911 Dispatch Center transfer discussion. Ms. Bennett updated the ERS Board regarding the 911 Dispatch Center transfer. Ms. Bennett reviewed the key issue was the inclusion of actuarial assumption based upon the ERS Board's experience study. The ERS Board's actuary advised that the actuarial assumptions should be included and Ms. Bennett agreed that the assumptions were based upon actual experience of the plan. Ms. Bennett reviewed that at the last meeting, the ERS Board voted to the actuarial experience study assumptions. Employees Retirement System Regular Meeting of November 21, 2013 Page 5 As of the last meeting, a letter was delivered to the Mayor's office that disputed the City's transfer amount. Ms. Bennett only became aware of the letter shortly before the ERS meeting last month. The letter had been released to the media. Ms. Bennett described in a later letter to the ERS Board that Ingham County administration would move forward and pay up front monies they believed were the appropriate amount. Ms. Bennett informed the Board that the City of Lansing or the Employees Retirement Board had not received a formal request from Ingham County for the amount to be transferred. Ms. Bennett stated that the actuarial amount with the experience study assumptions was $885,899; and the actuarial amount without the experience study without assumption was $1,074,180. It was moved by Trustee Kraus and supported by Trustee Wood to transfer $885,000 from the Employees Retirement System to an escrow account as a show of good faith until a final amount based upon the ERS Board's actuarial assumption that is agreed to by both parties for the purpose of the 911 Dispatch Center transfer. Trustee Kraus was adamant that the health of the Employees Retirement System Plan be maintained. Trustee Kraus commented that it was most important that the Plan be kept whole. Trustee Kraus stated that it was unfortunate that the experience study was not noted and included in the agreement with Ingham County. Trustee Kraus stated that it was her obligation and fiduciary responsibility to maintain the Employees Retirement System. Trustee Kraus was disappointed that these discussion with Ingham County has been released to the media. Trustee Kraus stated that she was offended that the City and the ERS Board was threatened with a lawsuit. Trustee Wood inquired if the ERS Board needed City Council action to move pension assets of $885,000 to an escrow account. Attorney Ken Lane opined that the ERS Board could move the money to an escrow account. The formal transfer and release of the money for the 911 dispatch center employees would require a supplemental actuarial report. Attorney Wood indicated that the City Council would take action after a recommendation from the ERS Retirement Board concerning the transfer of monies. Attorney Wood expressed concern that although Ingham County has negotiated with the City, this meeting was the first one that Ingham County officials attended with the ERS Board. Attorney Ken Lane opined that Public Act 314 requires a supplemental actuarial analysis for the ERS Board's actuary. Attorney Lane further opined that no formal transfer of pension assets should be released for the 911 dispatch center until the ERS Board reviewed the actuary report. Adopted by the following vote: 6 — 0 It was moved by Trustee Kraus and supported by Trustee Wood to create an ERS committee to support Ms. Bennett with the negotiations, and for the ERS Board's actuary and the Ingham County actuary to meet to work out the final actuarial based transfer of pension assets for the 911 dispatch employees. Trustee Dedic appointed Trustees Kraus, Wood, Parker and legal counsel to the committee. Adopted by the following vote: 6 — 0. Mr. George Tarlas and Mr. Andrew Gillentine, Asset Consulting Group reviewed the City of Lansing Employees' Retirement System International Value Candidates. Mr. Gillentine reviewed the Manager Selection process, manager comparisons, individual manager profiles and the portfolio combinations. The ERS Board selected Causeway International Value, Mondrian Investment Partners and Lazard International Equity to interview. The meeting adjourned at 9:35 a.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 EMPLOYEES RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI December 19, iol o— Thursday, 8:00 arn. The Board met in regular session and was called to order at 8:04 a.m. C-) Present: Kraus, McCaffery, Munroe, Parker, Taylor (8:13), Wood – 6 Absent: Trustee Dedic, Bernero. Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office); Greg Stump, Boomershine Consulting Group. It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official Minutes of the Employees Retirement System Board Regular Meeting of November 21, 2013, as amended. Adopted by the following vote: 5 – 0 It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official Joint Minutes of the Police and Fire System and the Employees Retirement System Board Meeting of November 21, 2013. Trustee Parker moved items 15a and 14a up on the agenda to be considered by the Employees Retirement System Board. Trustee Taylor arrived at the meeting. Ms. Angela Bennett distributed a spreadsheet from Boomershine Consulting Group regarding the City of Lansing Employees' Retirement System estimate of actuarial liability for the 911 Dispatch Center employees who transferred to Ingham County. Ms. Angela Bennett reviewed the actuarial liability of $968,348, as of the date of transfer June 27, 2012. The number was revised from the previous amount provided at the last meeting. Mr. Greg Stump explained that he created the spreadsheet and rolled the actuarial liability forward, applying normal cost until the transfer date. Employees Retirement System Regular Meeting of December 19, 2014 Page 2 Trustee Wood inquired if the spreadsheet could be considered as a supplemental analysis from the actuary as required by Public Act 314. Attorney Ken Lane opined that the spreadsheet is sufficient to be considered as a supplemental analysis required by Public Act 314. It was moved by Trustee Kraus and supported Trustee Wood to reconsider the motion to 885,000 from the Employees Retirement System to an escrow account as a show of good faith until a final amount based upon the ERS Board's actuarial assumption that is agreed to by both parties for the purpose of the 911 Dispatch Center transfer. . Adopted by the following vote: 6 - 0. Attorney Ken Lane distributed a resolution to transfer the actuarial liability and service credits to Ingham County. Attorney Lane opined the Reciprocal Retirement Act requires resolutions by City of Lansing and by Ingham County for the transfer. It was moved by Trustee Kraus and supported by Trustee Wood to adopt the following resolution: BOARD OF TRUSTEES LANSING EMPLOYEES' RETIREMENT SYSTEM Lansing, Michigan RESOLUTION NO. 12-19-13 WHEREAS, on or about September 14, 2010, the City of Lansing and Ingham County entered into an Agreement (the "Agreement") relating to the establishment and operation of a consolidated 911 dispatch center; and WHEREAS, pursuant to the Agreement, it was envisioned that certain City employees who worked as 911 operators in the City's Emergency Communications Division would be provided the opportunity to continue employment as County employees, would be placed in no -worse position regarding retirement benefits than if they had continued as City of Lansing employees, and would continue to receive eligibility for City of Lansing retiree health benefits; and WHEREAS, section 6(1) of the Reciprocal Retirement Act, MCL 38.1106(1) authorizes an agreement to transfer the credited service towards retirement of a member from his or her preceding reciprocal unit (in this instance, the City of Lansing) to his or her succeeding reciprocal unit (in this instance, Ingham County); and WHEREAS, the Agreement provided in part as follows: The City's Retirement System shall transfer to the County designated MERS plan(s) the trust pension assets equal to the funded value of the actuarially accrued liabilities as determined in the most recent actuarial valuation for Employees Retirement System Regular Meeting of December 19, 2013 Page 3 those Former City Employees Employed By The County. The County will assume remaining, unfunded accrued liabilities for those Former City Employees Employed By the County. The City shall provide such further and/or additional information or resolutions as may be required by MERS or the County. The County will establish with MERS such pension plan or plans providing Former City Employees Employed By The County with such pension benefits as negotiated with the appropriate recognized union or as designated by the County and shall provide for prior service credit. However, the County recognizes that the accrued benefits for service credit accrued by Former City Employees Employed By The County while employed by the City shall not be diminished. Future 911 Employees shall be placed in such plan as is negotiated with the applicable union or as established by the Count ; and WHEREAS, the actuarial accrued liability ("AAL") for each City employee that has elected to transfer to employment with the County has been calculated by Boomershine Consulting Group as of November 25, 2013, to be as set forth on the attached Appendix A; and WHEREAS, the City of Lansing has elected to have the provisions of the Reciprocal Retirement Act made applicable to its members as set forth in Municipal Code Section 292.47. NOW THEREFORE BE IT RESOLVED, that the City of Lansing Employees' Retirement System ("ERS") hereby authorizes the transfer of credited service (as referenced in Appendix A) and the funds designated for each transferred employee (as referenced in Appendix A) from the City of Lansing ERS to Ingham County for credit towards the transferred employee's retirement in the Municipal Employees Retirement System ("MERS") account established by Ingham County pursuant to the Agreement. The funds designated for transfer are contingent upon satisfaction of all of the following conditions: 1. Enactment of a resolution by the governing body of the County's retirement system accepting the determination of the actuarial present value of the retirement allowances attributable to the credited service for each transferred employee as set forth in Appendix A, and otherwise meeting the requirements of Section 6 of the Reciprocal Retirement Act, MCL 38.1106 and the Agreement. 2. For each transferred employee that elects to have their retirement transferred to the County, the execution of a Waiver and Release Agreement which waives all rights to a pension, annuity, retirement allowance or return of the accumulated contributions from the ERS. BE IT FURTHER RESOLVED, that it is the policy of this Board, enacted pursuant to MCL 38.1106(4), that applications for transfer of credited service pursuant to the Reciprocal Retirement Act shall only be granted in instances where there is an agreement such as the present Agreement. Employees Retirement System Regular Meeting of December 19, 2013 Page 4 BE IT FURTHER RESOLVED, that the provisions of this resolution apply to each of -the transferred employees referenced on Appendix A individually and are not dependent upon application to all of the transferred employees. BE IT FURTHER RESOLVED, that the funds will be transferred, pursuant to the County's instructions, to its applicable MERS accounts. BE IT FINALLY RESOLVED that the chair, Scott Dedic, is authorized on behalf of the ERS to sign and execute all documents to effectuate and finalize this transaction, subject to prior approval as to form by the City Attorney. YEAS: Trustees: Kraus, McCaffery, Munroe, Parker, Taylor, Wood NAYS: Trustees: None ABSTAIN: Trustees: None ABSENT: Trustees: Dedic, Bernero RESOLUTION DECLARED ADOPTED. Ms. Angela Bennett reported to the Employees Retirement System Board that a meeting was held with Ingham County that included Trustee Dedic and Trustee Parker. Attorney Ken Lane and Trustee Antonia Kraus were not allowed in the meeting. In the meeting, Ingham County requested a third -party actuary to review the actuarial liability. The costs for the actuarial valuation would be shared by the City of Lansing and Ingham County. Attorney Lane further explained that Ingham County agreed to be bound by the third -party actuary. Trustee Wood had concern about having another actuary review the numbers provided by Boomershine Consulting Group. Trustee Wood was reluctant for the Employees Retirement System Board to spend additional monies due to errors caused by Gabriel Roeder and Smith. Trustee Wood stated that Gabriel Roeder Smith should bear some legal responsibility to pay for the third -party actuary cost, due to their error in the initial estimate. Greg Stump provided background regarding what caused the discrepancies. Mr. Stump stated that the incorrect multiplier for the employees and an older actuary valuation was used. Mr. Stump stated that the actuary for Ingham County should have prepared an actuarial valuation. Mr. Stump would then compare the Boomershine valuation with the County's numbers. Employees Retirement System Regular Meeting of December 19, 2013 Page 5 Trustee Wood indicated that she was a member of the ad hoc committee that would meet with Ingham County and she was unaware of the most recent meeting. Trustee Wood requested that Attorney Lane review the legal options for Gabriel, Roeder and Smith to pay for the third -party actuary cost. Angela Bennett reviewed that the key objection from Ingham County was the assumption changes within the 12/31/2011 actuarial valuation. Trustee Kraus recommended two motions that regarding the transfer and how the difference in the actuarial liability calculations would be handled. It was moved by Trustee Kraus and supported by Trustee Wood to move $968,348 from the Employees Retirement System to the Ingham County MERS account, as detailed in the actuarial supplemental analysis prepared by Boomershine Consulting Group and as required by Public Act 314. Adopted by the following vote: 6 — 0 Trustee Kraus recommended that a negotiation team from the City of Lansing would meet with Ingham County to discuss resolutions for differences regarding the transfer of 911 Dispatch employees. The negotiation team would include a subcommittee from the Employees Retirement System Board, City administration, and actuary. Trustee Munroe requested that legal counsel for the Employees Retirement System Board be added to the negotiation team. It was moved by Trustee Kraus and supported by Trustee Wood that the Employees' Retirement System Board recommend to Ingham County that its actuary complete its analysis of the accrued liability, and upon completion that a subcommittee from the ERS Board, its legal advisor, the City of Lansing, Ingham County and their representative actuaries compare their valuations to determine and resolve any differences. Trustee Wood stated that the ERS Board's actuary had provided an actuarial analysis for the 911 employee transfer as required by PA314. Trustee Wood expressed concern that the Board would pay additional monies for another actuary. Trustee Kraus stated that her interest was to do what was fair and equitable for the Employees Retirement System and for the employees who transferred to Ingham County. Adopted by the following vote: 6 — 0. Employees Retirement System Regular Meeting of December 19, 2013 Page 6 It was moved by Trustee Wood and supported by Trustee Kraus to recess the Employees Retirement System Board meeting to allow the disability subcommittee to meet. Adopted by the following vote: 6 — 0. The meeting recessed at 8:41 a.m. The meeting resumed at 8:43 a.m. Karen Williams reported that Applicant #2013-E0523 had seen Dr. Roth and the medical report had been received and reviewed by the disability subcommittee. Trustee Kraus left the meeting It was moved by Trustee Wood and supported by Trustee Taylor to concur with the medical director to approve the duty disability of Applicant #2013-E0523 to be effective December 20, 2013. Adopted by the following vote: 5 — 0. Attorney Ken Lane opined that once a duty disability had been approved, the Employees Retirement System Board could mention the name of the applicant. Attorney Lane indicated that Mr. Craig Whitford had been approved for duty disability. Karen Williams reported that Applicant #2013-E1017 was listed as pending. The Retirement Office was waiting for the applicant's documentation. Karen Williams reported that Applicant #2013-E0524 had seen Dr. Roth and that the medical report had been received and reviewed by the disability subcommittee. It was moved by Trustee Wood and supported by Trustee Munroe to concur with the medical director to grant a non -duty disability, contingent upon the Human Resources Department not being able to locate another position in the City that the applicant can be placed based upon the applicant's skills and education. Trustee Munroe inquired if the Human Resources had completed an evaluation of the available positions. Trustee Taylor stated that there were no available positions for the applicant. Adopted by the following vote: 5 -0. Employees Retirement System Regular Meeting of December 19, 2013 Page 7 There were no public comments. Secretary=s Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 320. Total deferred: 61. 2 death(s). John Barcume, (Public Service/UAW), died 11/16/2013, age 65, spouse to receive 100%; Jeanette Savage, (Finance/Teamster), died 11/23/2013, age 73, no beneficiary. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of November 2013, amounted to $1,812,994.40. Total retirement checks printed for the ERS System: 884. Eligible domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Taylor to approve the following requests for Regular Age & Service Retirements: William E. Heighland (Public Service/UAW) — 25 years, 4 months of service credits, age 53, effective December 21, 2013. Richard Michalewicz (Public Service/UAW) 9 years, 2 months of service credits, age 62, effective January 1, 2014. (From Deferred) Amy Frasier (Human Resources/Teamster) — 10 years, 3 months of service credits, age 61, effective January 4, 2014. Barry Farhat (Public Service/UAW) — 8 years, 3 months of service credits, age 62, effective January 13, 2014 Adopted by the following vote: 5-0 There were no requests for refunds of accumulated contributions. It was moved by Trustee Wood and supported by Trustee Taylor to excuse Trustee Scott Dedic from the December 2013 meeting. Adopted by the following vote: 5 — 0. It was moved by Trustee Parker and supported by Trustee Wood to excuse Trustee McCaffery from the Employees Retirement System November Meeting. Adopted by the following vote: 6-0. Attorney Ken Lane provided an update of the ERS Ordinance. Attorney Lane indicated that the hybrid language for Teamster 214 had been added and the draft is being reviewed by the City Attorney's Office. Employees Retirement System Regular Meeting of December 19, 2013 Page 8 Trustee Wood indicated that the UAW contract had been approved and inquired if that information had been added. Trustee Wood requested that a red line copy of the changes made to the Ordinance from the City Attorney's Office go back to the ERS subcommittee for review. Attorney Ken Lane reported that Attorney Paul Novak of Milberg contacted him and stated that there was no security breach of the VERITAS system in the last five years. Milberg also provided assurances that the Board would be immediately notified if there is a security breach. Attorney Lane provided the email notification from Milberg to the Employees Retirement System chairperson to satisfy the Board's motion. Attorney Lane discussed Dewpoint's contribution to elected officials. Public Act 314 would prohibit the Retirement Board from using its assets to pay vendors or service providers that make campaign contributions over $350.00. The Public provides that if the contribution is discovered within 4 months, and the portion over $350 is refunded, there is no violation. Attorney Lane believed that the City Attorney's Office had verified that the Lansing elected officials who received contributions from Dewpoint returned all of the contributions. Attorney Lane drafted a letter to send out to all vendors to make them aware of the Public Act 314 and its provisions regarding campaign contributions. Trustee Wood informed the Employees Retirement Board that at the December 2, 2013 Council Meeting, the City Attorney provided a retirement board closed session confidential memo to the Council. The City Attorney provided a memo telling the Council that she concurred with the closed session memo. Trustee Wood stated that she asked the City Attorney repeatedly was she waiving the confidentiality of the memo. The City Attorney did waive the confidentiality. Trustee Wood stated that Council members were previously told that no one person can waive the confidentiality of the documents considered, except the body that went in to closed session. Attorney Ken Lane opined that the City Attorney was copied on the memo and had the ability to waive the confidential. Attorney Lane stated that moving forward the City Attorney will coordinate and communicate with the retirement board if she decides to waive the confidential of a closed session document. Trustee Wood had concerns that members of the public are requested to leave for closed session, yet the items considered are made public, without notification to the Employees Retirement Board. Trustee Wood did not want the appearance the Board was doing something inappropriate behind closed doors. The Board reviewed the suggested letter drafted by legal counsel regarding the Public Act 314 and campaign contributions. The Board approved the letter for legal counsel to send to vendors. Employees Retirement System Regular Meeting of December 19, 2013 Page 9 Karen Williams distributed general election results of December 18, 2013 to the Employees Retirement System Board. Mr. Dennis Parker received the most votes in the election. It was moved by Trustee Wood and supported by Trustee Taylor to approve the results of the Public Service Election and declare Mr. Dennis Parker as the new trustee to complete the term ending June 30, 2017. Adopted by the following vote: 5 - 0 Karen Williams distributed the 2014 Meeting Schedule for Board consideration and approval. The Employees Retirement System Board discussed amending the calendar with the following: September 25, 2014. It was moved Trustee Wood and supported by Trustee Taylor to approve the 2014 Meeting schedule as amended. Adopted by the following vote: 5 -0. It was moved by Trustee Wood and supported by Trustee Taylor to approve the SAS 70 Report based upon the recommendation from legal counsel and contingent upon review by Asset Consulting Group. Adopted by the following vote: 5 — 0. Mr. Gregory Stump provided an overview of the 2012 Actuarial valuation from the Employees Retirement System. Mr. Stump discussed the valuation results and changes from the prior year. He reviewed the investment experience, the expected contribution for next year, and the 20 -year outlook. Mr. Stump discussed the experience impact on the actuarial liability. Mr. Greg Stump provided an overview of the upcoming GASB 67 implications for the retirement system plans. He reviewed the discount rate, net pension liability and other disclosures that would need to be made. Mr. Stump will work with Angela Bennett regarding these new changes. Mr. Stump recommended that the Police and Fire Retirement Board establish a written funding policy. The Policy should be reviewed with every experience study. The Policy will include objectives, assumption guidelines and the amortization adopted by the Board. The Funding policy will also include normal costs and contributions levels. Karen Williams updated the ERS Board regarding the Tegrit Arrivos Software Project. Report. Ms. Williams reported that work continued on development of the maintenance and tools module of the software. The Police and Fire System discussed hiring Mr. Bob Rose as project sponsor for the software project. Mr. Rose expressed his concerns regarding liability protection if he was to resume his role as project sponsor. Mr. Rose stated that his could be exposed to lawsuits regarding the execution and implementation of the software project. He believed that the Retirement Board did not have liability protection for him in the event of litigation and was not comfortable going forward. Therefore he politely declined the offer from the Police and Fire Retirement Board. Trustee Wood further reported that the Police and Fire Board did discuss options, such as purchasing additional insurance or having Mr. Rose form a limited liability company. Trustee Wood stated that Mr. Rose would only I4e comfortable sitting in on status meetings and reporting back to the Board. Therefore, the Police and Fire Board thought it would be better for a board member to be the project sponsor. Trustee Brad St. Aubin would reach out the Trustee Mark Park to assume those duties. Trustee Wood and Trustee Munroe offered their assistance to Trustee Mark Parker. Karen Williams reviewed the monthly investment and securities lending report for the month of November 2013. It was moved by Trustee Wood and supported by Trustee Taylor to adjourn the meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 9:45 a.m. Minutes approved on Angela Bennett, Secretary Employees Retirement System Scott Dedic, Chairperson Employees' Retirement System