HomeMy WebLinkAbout2014 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
January 23, 2014
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:36 a.m.
Present: Boles (8:44), Dedic, Kraus, McCaffery, Munroe, D. Parker, M. Parker, Taylor —
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 Munroe to approve the
Official Minutes of the Employees Retirement System Board Regular Meeting of
December 19, 2013.
Adopted by the following vote: 7 — 0
F.r,
There was no public comment.
^1 `1
Secretary=s Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 tra.Rsfe@Z 2 rri
retired. Total active membership: 318. Total deferred: 62. 0 death(s). Refuxrds
made since the last regular meeting amounted to $0.00. Retirement allowances paid
for the month of December 2013, amounted to $1,818,518.63. Total retirementiGheeks
printed for the ERS System: 885. 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 Taylor to approve the following
requests for Regular Age & Service Retirement:
Glen A. Feldpaush (Finance/Teamster) — 11 years, 4 months of service credits, age 58,
effective January 19, 2014.(with the purchase of 1 years of universal buy -in service
credits)
Adopted by the following vote: 7 - 0
Employees Retirement System
Regular Meeting of January 23, 2014
Page 2
Karen Williams reported that Applicant #2013-E1017 was listed as pending. The
Retirement Office was waiting for the applicant's documentation.
There were no requests for refunds of accumulated contributions.
Attorney Ken Lane reviewed the draft funding policy that was distributed by Mr. Greg
Stump, actuary, Boomershine Consulting Group at the January meeting. Attorney Lane
discussed the recommendation that if the plan becomes 100% funded; the policy would
have guidelines for the City to contribute a minimum amount. Attorney Lane stated that
he believed the state law would not allow a mandate from the retirement system to
contribute a minimum amount. The state law provides what is required for the City
contribution.
Ms. Bennett notified the ERS Board that even with the plan 100%, there is generally a
contribution made to the system. However, Ms. Bennett did not want to compel the
City to a certain percentage if the plan because funded more than 100%
Trustee Boles arrived to the meeting.
Attorney Ken Lane received an amendment from PBI written into the contract. Attorney Lane
had concerns with some of the provisions of the contract. Attorney Lane brought to the
Board's attention that the amendment would absolve the PBI company of all responsibility for
the data that is supplied to the City of Lansing Retirement System. Attorney Lane
recommended that the amendment be removed.
Trustee Kraus stated that if PBI will not take out the amendment, the Board should consider an
alternative.
The PBI contract was moved to pending.
Attorney Ken Lane updated the ERS Board regarding the Retirement Ordinance. The UAW
contract language needed to be added to the Retirement Ordinance, Attorney Lane discussed
the Public Act 314 provisions for required annual reports. The Police and Fire Retirement
Board's annual policy provides for the Actuary Report and the Asset Consulting Group report
satisfies the requirements. Attorney Lane also discussed that a projected budget showing
expenditures for the year was required. Attorney Lane would provide a budget for the Police
and Fire Retirement Board. The statute also requires financial report looks back 7 and 10
years and provide it in the annual reporting. The report would need to be approved at a public
meeting than sent to the Mayor and Council.
Trustee Kraus nominated Scott Dedic as chairperson and Mark Parker as vice
chairperson. The nominations were closed
Employees Retirement System
Regular Meeting of January 23, 2014
Page 3
It was moved by Trustee Kraus and supported by Trustee McCaffery to elect Trustee
Scott Dedic as chairperson and Trustee Mark Parker as vice chairperson for the
Employees Retirement System for 2014.
Adopted by the following vote: 8 - 0
The Employees Retirement System approved the following committee assignments:
DISABILTYCOMMITTEE - Taylor, Dedic, Kraus
INVESTMENT COMMITTEE- Kraus, McCaffery, D. Parker, M. Parker
EDUCATION COMMITTEE - M. Parker, Boles, Dedic, Munroe, D. Parker
ORDINANCE CHANGES COMMITTEE - D. Parker, Boles, Kraus, Munroe
(Expanded for Special Projects)
JOINT AD HOC COMMITTEE - Dedic, Munroe, D. Parker, M. Parker
ON HEALTH CARE
OUTSIDE LEGAL SERVICES COM. - Dedic, Boles, Parker, Taylor
Ms. Angela Bennett reported that she contacted Mr. Greg Stump, actuary, Boomershine
Consulting Group with recommendations for the final report. Ms. Bennett requested
changes to the cover of the report to list the name of the plan. Ms. Bennett requested
amendments to the executive summary and changing the report date to December 31
as in previous reports. Ms. Bennett noted some data corrections. Ms. Bennett asked
for the Board's direction regarding including additional graphs as provided during the
actuary's presentation last month..
It was moved by Trustee Kraus and supported by Trustee Munroe to have Boomershine
include the additional graphs in the actuary valuation.
Adopted by the following vote: 8 - 0
Trustee Boles inquired about the process in contacting the actuary to make changes.
Trustee Dedic recommended that members review the actuary report and send any
requested amendments to Karen Williams so they could be forwarded to the Angela
Bennett and then the actuary. The actuary can incorporate the amendments into the
final draft for the February meeting.
Employees Retirement System
Regular Meeting of January 23, 2014
Page 4
Karen Williams updated the Board that the International Value manager interviews will
take place Tuesday, February 18 following the Joint Meeting of the Police and Fire and
the Employees Retirement System.
Attorney Ken Lane updated the ERS Board regarding the 911 Center Transfer. Attorney
Lane stated that a meeting was held January 14, 2014 with Ingham County. The
County was unaware that the MERS actuary had not reviewed the City of Lansing
actuarial valuation for the transfer. Attorney Lane stated that Ingham County will have
the MERS actuary review the numbers and discuss any difference with the Employees
Retirement System Board actuary, Greg Stump, Boomershine Consulting Group.
Ms. Angela Bennett confirmed that the actuarial liability of $968,348 was transferred to
the Ingham County account at MERS, December 31, 2013. .
Attorney Ken Lane stated that the Board passed a resolution contingent upon the
Ingham County passing a resolution, and receiving employee waivers. Attorney Ken
Lane believes that the transfer of the money and the Ingham County's acceptance
releases the City of Lansing's liability for the 911 dispatch, center employees. The City
Attorney's Office opined that the employee waivers would not be required. Attorney
Lane distributed a revised resolution that would facilitate the transfer of service credits
for the 911 dispatch center employees. The Ingham County would be required by the
Reciprocal Retirement Act to pass a resolution to receive the service credits of the 911
dispatch center employees.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to rescind the
resolution from the last meeting and adopt the following resolution as amended:
BOARD OF TRUSTEES
LANSING EMPLOYEES' RETIREMENT SYSTEM
Lansing, Michigan
Trustee Kraus, supported by Trustee M. Parker, moved the adoption of the following resolution:
RESOLUTION NO. 01-23-14
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
Employees Retirement System
Regular Meeting of January 23, 2014
Page 5
position regarding retirement benefits than if they had continued as City of Lansing employees;
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 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 County
; and
WHEREAS, the actuarial accrued liability for each City employee that has elected to transfer to
employment with the County was calculated by Boomershine Consulting Group as of November
25, 2013, 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; and
WHEREAS, at its meeting on December 19, 2013, the City of Lansing Employees' Retirement
System ("ERS") authorized 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; and
WHEREAS, pursuant to the County's instructions, the transferred funds were received by the
applicable MERS accounts on December 31, 2013; and
WHEREAS, in the opinion of legal counsel, the transfer of credited service pursuant to the
Reciprocal Retirement Act from the ERS to Ingham County's retirement system extinguishes
Employees Retirement System
Regular Meeting of January 23, 2014
Page 6
any remaining retirement obligations, with the exception of retirement health care, for the ERS
or the City of Lansing towards the transferred employees.
NOW, THEREFORE BE IT RESOLVED AS FOLLOWS:
1. The governing body of the County's retirement system shall adopt a resolution 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. Based upon the advice of its legal counsel, the ERS Board revokes the condition enacted in
its prior resolution that required each transferred employee to execute a waiver as a condition to
the transfer of funds from the ERS to the County's retirement system and hereby recognizes the
transfer of funds as set forth in this Resolution without any additional conditions.
3. 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.
4. 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.
5. ERS 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.
6. All resolutions and parts of resolutions are, to the extent of any conflict with this Resolution,
rescinded.
YEAS: Trustees: Boles, Dedic, Kraus, McCaffery, Munroe, D. Parker, M.Parker, Taylor
NAYS: Trustees: None
ABSTAIN: Trustees: _ None
ABSENT: Trustees: Bernero
RESOLUTION DECLARED ADOPTED.
Employees Retirement System
(Regular Meeting of January 23, 2014
Page 7
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.
Trustee Mark Parker added that the Tegrit will rebaseline the project and provide new
dates for completion of the different phases.
Karen Williams reviewed the monthly investment and securities lending report for the
month of December 2013.
The meeting adjourned at 9:33 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 February 20, 201.4
City Council Conference Room Thursday, 8:30 �p s'
10th Floor, City Hall cap
Lansing, MI c
clt Ul
The Board met in regular session and was called to order at 8:36 a.m.
Present: Dedic, Kraus, McCaffery, Munroe, D. Parker, M. Parker, Taylor — 7 C) co
Absent: Trustee Bernero Boles.
Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Kraus and supported by Trustee Munroe to approve the
Official Minutes of the Employees Retirement System Board Regular Meeting of
January 23, 2014.
Adopted by the following vote: 7 — 0
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: 312. Total deferred: 63. 1 death(s) Dorothy
Kennedy, (Parks/Non Bargaining), died 11/21/2013, age 105, no beneficiary. Refunds
made since the last regular meeting amounted to $0.00. Retirement allowances paid
for the month of January 2014, amounted to $1,830,611.81. Total retirement checks
printed for the ERS System: 892. Eligible domestic relations orders received: 0.
Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee M. Parker and supported by Trustee Taylor to approve the following
requests for Regular Age & Service Retirement:
Daniel J. Curtin (Finance/Teamster) — 24 years, 2 months of service credits, age 58,
effective February 15, 2014. (with the purchase of 1 year, 7 months of universal buy -in
service credits)
Adopted by the following vote: 7 - 0
C'7
Employees Retirement System
Regular Meeting of February 20, 2014
Page 2
Karen Williams reported that Applicant #2013-E1017 was listed as pending. The
Retirement Office was waiting for the applicant's documentation.
There were no requests for refunds of accumulated contributions.
Attorney Lane discussed the Public Act 314 provisions for required annual reports. Attorney
Lane reviewed the Actuary Report and the Asset Consulting Group financial report, and
confirmed that those documents satisfy the requirements. The statute also requires financial
report looks back 7 and 10 years and provide it in the annual reporting. Attorney Lane
distributed and reviewed the projected budget for the Employees Retirement System Board.
The report would need to be approved at a public meeting than sent to the Mayor and Council.
The items would need to be posted on the Retirement website within seven days of approval by
the ERS Board.
It was moved by Trustee Mark Parker and supported by Trustee Taylor to approve the projected
budget for the Employees Retirement System Board.
Adopted by the following vote: 7 — 0.
Attorney Lane explained that the City will finalize its contributions and the ERS Board will need
to confirm the amount at the next meeting.
Attorney Ken Lane reviewed the amendment written into the PBI contract. PBI stated that the
information provided is generally from credit agencies and the information cannot be
guaranteed. Attorney Lane informed the Board that cost of the service would only be $750.
Attorney Lane was comfortable with language. Attorney Lane stated that when information
comes from PBI, the Retirement Board can send a letter to verify if the retiree is deceased.
It was moved by Trustee Mark Parker and supported by Trustee Taylor to approve the
amendment to the PBI contract.
Adopted by the following vote: 7-0.
Attorney Ken Lane updated the ERS Board regarding the 911 Center Transfer.
Ingham County will pass a similar resolution to the resolution adopted by the City of
Lansing Employees Retirement System Board. Attorney Lane stated that MERS hired
a third -party actuary to review the valuation amount. Mr. Greg Stump, Boomershine
Consulting Group has discussed the valuation with the third -party actuary and believes
there should be a resolution. The third party actuary will provide a report to Ingham
County and MERS.
Trustee Antonia Kraus reported that the investment subcommittee had met to interview
international value investment manager. Ms. Kraus recommended that Lazard be
appointed as the new international value investment manager.
Employees Retirement System
Regular Meeting of February 20, 2014
Page 3
It was moved by Trustee Kraus and supported by Trustee McCaffery to remove Invesco
and appoint Lazard as its international value investment manager, contingent upon legal
review of the investment contracts.
Adopted by the following vote: 7 - 0
Karen Williams provided an update of the Arrivos Pension Software implementation.
Tegrit is working on a new schedule for the software implementation. Karen Williams
will begin working with Tegrit to create the retirement calculators.
Karen Williams reviewed the quarterly expense report and securities lending report for
the month of January 2014.
Trustee Kraus reported that Police and Fire Retirement Board requested that the
quarterly report include a percentage of budget spent section. Trustee Kraus will
restructure the quarterly expense report to incorporate the items listed in the projected
budget that was required by Public Act 314.
The meeting adjourned at 8:55 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 20, 2014
Thursday, 8:30 a.m.
Imo' N
The Board met in regular session and was called to order at 8:34 a.m.
221
Present: Boles, Dedic, Kraus, McCaffery, D. Parker, M. Parker, Taylor — 7
Absent: Trustee Bernero, Munroe
Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark-,
(representing the City Attorney's Office). `•'
It was moved by Trustee Kraus and supported by Trustee M. Parker to approve the
Official Minutes of the Joint Police and Fire Retirement System and the Employees'
Retirement System Board Regular Meeting of February 18, 2014.
Adopted by the following vote: 7 — 0
It was moved by Trustee Kraus and supported by Trustee McCaffery to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of February 20,
2014.
Adopted by the following vote: 7- 0
There were no public comments.
Secretary=s Report. 6 new member(s), 0 reinstaternent(s), 0 refund(s), 0 transfers, 1
retired. Total active membership: 314. Total deferred: 64. 3 death(s) Patricia Erzen,
died 2/16/2014, age 69, spouse of UAW member; Virginia Spadafore, (Public
Service/Teamster, retired 8/1/1989), died 2/26/2014, age 91, no beneficiary; Garland P.
Martell, (Public Service/UAW, retired 4/17/2002), died 3/7/2014, age 62, beneficiary to
receive 100%. Refunds made since the last regular meeting amounted to $0.00.
Retirement allowances paid for the month of February 2014, amounted to
$1,775,244.92. Total retirement checks printed for the ERS System: 891. Eligible
domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
7U
C7
t�
Employees Retirement System
Regular Meeting of March 20, 2014
Page 2
Trustee Boles inquired about pending Eligible Domestic Relations Orders (EDROs). Karen
Williams explained that EDROs are certified and calculated by the Board's actuary. Karen
Williams reviewed the process regarding how EDROs are implemented.
It was moved by Trustee Kraus and supported by Trustee M. Parker to approve the following
requests for Regular Age & Service Retirement:
Mark Colby (Finance/Teamster) — 15 years, 10 months of service credits, age 58,
effective March 1, 2014.(from Deferred)
Jane Dykema (Public Service/Teamster) — 25 years of service, age 56, effective March
15, 2014 (with purchase of 4 years, 3 months of service credits)
Adopted by the following vote: 7 - 0
Karen Williams reported that the Retirement Office received a Request for Duty
Disability Retirement from Applicant #2014-E0320.
The duty disability request for Applicant #2014-E0320 was referred to the disability
subcommittee.
Karen Williams reported that Applicant #2013-E1017 request for non -duty disability
was listed as pending. The Retirement Office received the applicant's documentation
and it was forwarded to the Medical Director to schedule an evaluation.
There were no requests for refunds of accumulated contributions.
Karen Williams reported that Trustee Munroe contacted the Retirement Office and
requested to be excused from the Employees Retirement System Board meeting.
It was moved by Trustee Boles and supported by Trustee Taylor to excuse Trustee Munroe from
the March Employees' Retirement System Board meeting.
Adopted by the following vote: 7 - 0
Ms. Williams discussed the MAPERS Spring Conference, scheduled for May 18-20,
2014. Ms. Williams informed the trustees that the deadline for early registration would
be April 18, 2014.
Ms. Williams reported that Trustee Boles and Trustee Dennis Parker requested Board credit
cards.
Employees Retirement System
Regular Meeting of March 20, 2014
Page 3
It was moved by Trustee Taylor and supported by Trustee Mark Parker for Trustee Boles and
Trustee Dennis Parker to have a Board credit card.
Trustee Kraus requested that with the increase of number of credit cards, it is important to be
keep receipts and submit them in a timely manner.
Adopted by the following vote: 7 — 0
Attorney Lane distributed updates to the Trustee Handbook. Attorney Lane reviewed the
provision in Public Act 314 to review the travel policy amounts on a yearly basis. The
Employees' Retirement System current limits are $6,000 for out-of-state travel and $4,000 for
in-state travel per trustee.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to keep the current
trustee travel amounts for the year.
Adopted by the following vote: 7 - 0
Attorney Ken Lane discussed the Unfunded Accrued Liability Plan portion of the Michigan's
EVIP program. Attorney Lane described that to receive revenue sharing from the State of
Michigan Department, the City will need to certify for the Michigan Department of Treasury by
June 1, 2014 that there is an Unfunded Accrued Liability Plan.
The Unfunded Accrued Liability Plan will include a description of previous actions taken,
estimated cost savings, description of how previous actions were implemented and maintained
and a listing of additional steps that could be taken. Attorney Ken Lane stressed the
importance of having a timely actuarial valuation.
Karen Williams discussed the proposed due diligence visit to Asset Consulting Group. The
Employees Retirement System requested additional dates in June or July for the due diligence
trip, in order for more trustees to attend. Ms. Williams will contact Asset Consulting Group
and provide additional dates at the next meeting.
Karen Williams reported that a memo from Ms. Angela Bennett was received for the
Employees' Retirement System. The memo detailed the FY 2014 Employees'
Retirement System Pension Contribution stating: On March 6, 2014, $761,009 was
transferred by the City to the Employees' Retirement System for the balance of the FY
2014 contribution. That amount, combined with the $8,600,000 amount contributed
November 1, equals the FY 2014 actuarial valuation -calculated contribution amount of
$9,361,009.
It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to
recognize the FY 2014 Employees' Retirement System Pension Contribution balance.
Adopted by the following vote: 7 — 0.
Employees Retirement System
Regular Meeting of March 20, 2014
Page 4
Trustee Kraus discussed amendments to the quarterly expenses report that would
include a cumulative year—to-date total. Karen Williams requested that members
review the report and provide suggestions and changes to Trustee Kraus.
Karen Williams provided an update of the Arrivos Pension Software implernentation.
Tegrit has requested approval to implement the hosting agreement upon completion of
Phase 2 of the project. Tegrit believes going live will save money and time and provide
benefits in implementing the City's death audit and increasing the effectiveness of user
testing. The Retirement Boards will split the cost of $4000 per month.
It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to
approve implementation of the hosting agreement.
Adopted by the following vote: 7 — 0.
Trustee Mark Parker reported to the Employees Retirement Systern that the software
project implementation will be delayed due to resource constraints at Tegrit. Tegrit had
discussed this delay with the previous project sponsor. The resource that Tegrit is
expecting to complete the calculators will not be available until July.
Trustee Scott Dedic left the meeting. Trustee Mark Parker chaired the remainder of the
meeting.
Karen Williams reviewed the quarterly cash flow withdrawals that were approved at the
February Joint Meeting. Asset Consulting Group recommended the Board redeem
$1,800,000 from the Northern Trust S& P 500 Index portfolio and redeem $4,000,000
from the TRowe Price portfolio. The Employees' Retirement System Board also
redeemed $50,000 from the Northern Trust Securities Lending Account for
administrative expenses.
Karen Williams reported to the Employees' Retirement System Board that the Invesco
investment will be liquidated to fund the Board's new International manager, Lazard.
Attorney Ken Lane reported that the funding of Lazard is scheduled for March 31, 2014.
Trustee Boles inquired if the Invesco redemption amount was known. Karen Williams
reported that the redemption amount will be calculated at market value on March 31.
Asset Consulting Group will provide the information to the Board for its next meeting.
Karen Williams informed the Retirement Board that the authorized signers list had not
been updated in a few years. This list is often requested by investment manager. Ms.
Williams inquired if the Board would like to make any changes to the list.
Attorney Ken Lane reported that Scott Dedic is listed as the chair and Antonia Kraus as
the treasurer. Attorney Lane thought it would be a good idea to keep the list of
authorized signers updated.
It was moved by Trustee Boles and supported by Trustee Taylor to approve Trustee
Scott Dedic and Trustee Antonia Kraus as authorized signers.
Adopted by the following vote: 6 — 0.
Karen Williams reviewed the monthly investment report and securities lending report for
the month of February 2014.
It was moved by Trustee Boles and supported by Trustee McCaffery to adjourn the
meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:06 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 April 17, 2014
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 8:38 a.m.
Present: Boles, Dedic, Kraus, McCaffery, Munroe, D. Parker, M. Parker, Taylor — 8
Absent: Trustee Bernero
Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Kraus and supported by Trustee M. Parker to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of March 20,
2014.
Adopted by the following vote: 8- 0
There were no public comments.
Secretary=s Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2
retired. Total active membership: 310. Total deferred: 64. 3 death(s) James C.
Dothard, (Public Service/Non Bargaining, retired 4/30/1985), died 12/24/2012, age 86, no
beneficiary; Leon Dumeney, (Public Service/NonBarg aining retired 5/27/1977), died
3/26/2014 age 92, no beneficiary; James J. Pecora, (Human Resources/Teamster,
retired 8/27/2001), died 4/3/2014, age 71, beneficiary to receive 100%. Refunds made
since the last regular meeting amounted to $0.00. Retirement allowances paid for the
month of March 2014, amounted to $1,835,088.23. Total retirement checks printed for
the ERS System: 892. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 0. Eligible domestic relations orders certified: 1.
There were no requests for Regular Age and Service Retirements
Karen Williams reported that Applicant #2014-E0320 is pending, waiting upon
documentation requested for the medical evaluation.
Employees Retirement System
Regular Meeting of April 15, 2014
Page 2
Karen Williams reported that Applicant #2013-E1017 request for non -duty disability was
listed as pending. The applicant has been scheduled to see the Dr. Roth and the
medical report is pending.
Karen Williams reported that Applicant #2013-E0417 requested to be evaluated for non -
duty disability. Applicant #2013-E0417 was referred to the disability subcommittee
The meeting was recessed by the chairperson, Trustee Dedic to allow the disability
subcommittee to review Applicant #2014-E0417 request for non -duty disability.
The meeting recessed at 8:42 a.m.
The meeting was called back to order at 8:44 a.m.
Trustee Kraus reported that the disability subcommittee had met and recommended to
the Employees' Retirement System Board to send Applicant #2014-E0417 to the
medical director.
It was moved by Trustee Kraus and supported by Trustee Taylor to send Applicant
#2014-E0417 to the medical director.
There were no requests for refunds of accumulated contributions.
Ms. Williams discussed the MAPERS Spring Conference, scheduled for May 18-20,
2014. Ms. Williams informed the trustees that the deadline for early registration would
be April 18, 2014.
Karen Williams reviewed the travel policy and how to complete the expense report that
is required for reimbursement. The ERS Board reviewed the mileage rate and per diem
amounts for meals.
Karen Williams reported that the IFEBP Annual Conference will be held, October 11 -2014.
Karen Williams reminded members that member who wished to go needed approval from the
chairman, and if more than two wanted to go, the ERS Board needed to grant approval.
It was moved by Trustee M. Parker and supported by Trustee Kraus to allow Trustees Dedic,
Kraus, D. Parker, Taylor and Munroe to attend the IFEBP Conference.
Adopted by the following vote: 8 — 0
Employees Retirement System
Regular Meeting of April 15, 2014
Page 3
Attorney Ken Lane distributed updated Frequently Asked Questions for the Trustee Handbook.
Attorney Ken Lane reviewed the amended Credit Policy.. Trustees cannot use the credit card
for alcohol or personal expenses. The amendments also provides for the termination of credit
card privileges.
Attorney Lane reported that the City of Lansing made the remainder of the employer
contribution last month. However, the memo listed that the contributions were made in
fiscal year 2014. Attorney Lane opined that the Employees' Retirement System is on a
calendar year; therefore the contributions should be listed for calendar year 2012.
Attorney Lane requested a motion be made to clarify the information in the memo.
It was moved by Trustee Boles and supported by Trustee Taylor to accept the employer
contributions that were made by the City of Lansing last month was for the calendar
year 2012.
Adopted by the following vote: 6 - 0
Attorney Lane updated the Employees' Retirement System Board regarding the death check
vendor, PBI. The company is required under a new federal law to verify the use of the social
security administration data supplied by the company. Under the new law, clients can only use
the PBI data to comply with legislation or for fraud prevention or fiduciary responsibility. PBI
requires a policy regarding how the data is handled. Attorney Ken Lane opined that the ERS
Board's should have a policy regarding how the information is handled. Attorney Lane stated
that the reporting of deaths would remain under the Secretary's Report. However, if the
members wished to review the information from PBI, the Board would need to go into closed
session. Attorney Lane stated that he would draft a policy for review at the next month's
meeting.
Attorney Lane reported that the ERS Board received an Email from the Invesco Mortgage
Recovery investment regarding paying taxes to the State of California. Invesco has provided an
Opt -Out form that can be completed because the ERS Retirement System is tax-exempt.
Attorney Lane stated that he would complete the form and have it signed and submitted by the
April 30, 2014 due date.
Attorney Ken Lane reviewed a derivative case recommended by the Robbins, Geller,
Rudman & Dowd portfolio monitoring program. Robbins, Geller suggested that the
Employees Retirement System consider seeking lead plaintiff status. Attorney Lane
reported that the Robbins, Geller Firm attained local counsel that was not on the
approved City Counsel list. The amount listed in the derivative case was below the
threshold set in the Securities Monitoring policy by the Employees Retirement System
Board.
Employees Retirement System
Regular Meeting of April 15, 2014
Page 4
Attorney Lane reported that Police and Fire Retirement System declined the Robbins,
Geller, Rudman & Dowd's memo recommendation to become lead plaintiff in the
derivative case. Attorney Lane stated that the lead plaintiff may also need to testify in
the case.
Trustee Kraus explained that the legal action is a corporate governance case and that
there would probably be no monetary damages. Trustee Kraus believed that the case
would not be a good use of the Board resources.
Trustee Munroe inquired if Robbins Geller would continue the legal action without the
City of Lansing Retirement Boards as lead plaintiff and ask if the ERS Board could re-
visit the case if losses surpassed the threshold in the policy.
It was moved by Trustee Boles and supported by Trustee Taylor that the Employees
Retirement System Board decline as lead plaintiff of the Robbins Geller derivative case.
Adopted by the following vote: 8 - 0
Karen Williams reported that former investment manager, Artio International Equity Group Trust
sent an email requesting assistance from the Employees Retirement System Board. Artio
International requested that form 6166 be completed so that the company may reclaim foreign
taxes paid. Trustee Kraus forwarded the email to Asset Consulting Group for review.
Asset Consulting Group reviewed the request and explained that the City of Lansing ERS Board
was previously interest in the equity trust. Asset Consulting Group reported that the City of
Lansing had already received their share of foreign tax reclaim. The completion of the forms
would require the ERS Board to spend funds to file the form with no monetary benefit to the
Plan.
Attorney Lane explained that the Artio Group had already paid the foreign taxes and was
seeking reimbursement. Attorney Lane opined that the ERS Board has no obligation to comply
with this request. Attorney Lane opined that the ERS Board should comply with the
recommendation of Asset Consulting Group.
It was moved by Trustee Kraus and supported by Trustee Munroe to decline the Artio
International Group Trust's request to complete and submit form 6166.
Adopted by the following vote: 8 — 0.
Karen Williams reviewed possible dates for the due diligence trip to Asset Consulting
Group in June. The Police and Fire Board suggested June 9 -11
Trustee Kraus and Trustee Taylor preferred the June 9-11 dates.
Employees Retirement System
Regular Meeting of April 15, 2014
Page 5
It was moved by Trustee Taylor and supported by Trustee Boles to approve the dates of
June 9-11 for the due diligence trip to Asset Consulting Group.
Adopted by the following vote: 8 - 0
Karen Williams reviewed the Asset Consulting Group suggested investment managers
meeting schedule for the Police and Fire Retirement Board and the Employees'
Retirement System Board at joint meetings for the year: Western Asset, May; MD Sass,
August; UBS Trumbull Property Fund, November.
The Retirement Office received a request, from Munder Capital that handles the
integrity investment, to publish the Employees Retirement System as its client. The
Retirement Office received an email from Munder Capital stating that the company had
merged with another company. The Retirement Office sent the information to Asset
Consulting Group for review. Ms. Williams requested the Employees Retirement
System delay its approval until the Board receives a response from Asset Consulting
Group.
Trustee Dedic moved the Integrity Investment Client authorization form to pending.
Ms. Williams informed the Employees Retirement System Board of a memo to the
Information Technology department to confirm its approval for new computer equipment
for the retirement office.
Karen Williams provided an update of the Arrivos Pension Software implementation.
Tegrit will suspend work on the project for approximately 11 weeks due to resource
constraints. Tegrit will set up User Testing in June, when the data goes live. Tegrit will
provide an updated timeline and resume work on calculators in July. Ms. Williams
reported that she has reviewed the PBI death check site.
Karen Williams reviewed the monthly investment report and securities lending report for
the month of March 2014.
It was moved by Trustee Boles and supported by Trustee McCaffery to adjourn the
meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:29 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
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May 15, 2014
Thursday, 8:30 a.m.
C" 3
The Board met in regular session and was called to order at 8:38 a.m.
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Present: Dedic,(8:49), McCaffery, Munroe, D. Parker, M. Parker, Taylor (8:40)
Absent: Trustee Bernero, Boles, Kraus
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Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office).
Trustee Mark Parker presided.
There were no public comments.
Secretary=s Report. 3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers,0
retired. Total active membership: 312. Total deferred: 65. 2 death(s) Karen Skutt died
1/1/2014, age 74, spouse of UAW retiree; Bruce H. Leavitt, (NonBargaining — Retired
10/21/1988), age 87, died 5/8/2014, spouse to receive 100%. Refunds made since the
last regular meeting amounted to $0.00. Retirement allowances paid for the month of
April 2014, amounted to $1,829,736.81. Total retirement checks printed for the ERS
System: 890. Eligible domestic relations orders received: 0. Domestic relations orders
pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Taylor and supported by Trustee Munroe to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of April 17,
2014.
Adopted by the following vote: 6- 0
It was moved by Trustee Dennis Parker and supported by Trustee Taylor to approve the
following request for Regular Age and Service:
Nancy L. McNamara, (Public Service/UAW) — 20 years of service credits, age 60,
effective May 14, 2014
Employees Retirement System
Regular Meeting of May 15, 2014
Page 2
It was moved by Trustee Dennis Parker and supported by Trustee Taylor to approve the
following request for Regular Age and Service (continued):
Robert Meyers (Public Service/UAW), 24 years, 7 months of service credits, age 59,
effective May 17, 2014.
Douglas Halstead, (Planning/Teamster), 15 years, 1 month of service credits, age 74,
effective May 31, 2014.
Troy Wood (Public Service/UAW)-27years of service credits, age 50, effective June 14,
2014.
Adopted by the following vote: 5 — 0.
Karen Williams reported that Applicant #2014-E0320 has requested to withdraw their
application for duty disability retirement.
It was moved by Trustee Dennis Parker and supported by Trustee Taylor to accept Applicant
#2014-E0320 request to withdraw their application.
Adopted by the following vote: 5 — 0.
Karen Williams reported that the medical report for Applicant #2013-E1017 had been
received by the disability subcommittee for review.
Trustee Taylor reported that the disability subcommittee had met and recommended to
concur with the medical report and approve the non duty disability of Applicant #2013-
E1017.
It was moved by Trustee Dennis Parker and supported by Trustee Taylor to concur with
the medical report and approve the non duty disability of Applicant # 2013-E1017.
Adopted by the following vote: 5 — 0.
Karen Williams reported that Applicant #2014-E0417 was listed as pending. The
Retirement Office is waiting for the applicant's medical release and documents.
Karen Williams reported that Applicant #2014-E0515 requested to be evaluated for non -
duty disability. Applicant #2014-E0515 was referred to the disability subcommittee
Karen Williams reported that Ms. Lin -Chi Wang, District Court Exempt hah requested a
refund of accumulated contributions of $1,712.48. Ms. Wang terminated her
employment with the City and was not vested for retirement.
Employees Retirement System
Regular Meeting of May 15, 2014
Page 3
It was moved by Trustee Dennis Parker and supported by Trustee Munroe to approve
the request for refund of accumulated contributions for Ms. Lin -Chi Wang of $1,712.48.
Adopted by the following vote: 5 — 0.
Ms. Williams updated the Employees Retirement System regarding the MAPERS Spring
Conference, scheduled for May 18-20, 2014.
Trustee Dedic arrived and presided over the meeting.
Attorney Lane updated the ERS Board regarding the Invesco Mortgage Recovery investment
requirement for paying taxes to the State of California. Invesco provided an Opt -Out form that
could be completed because the ERS Retirement System is tax-exempt. Attorney Lane
completed the form by the April 30, 2014 deadline, and was told that it should be kept on file
with the City of Lansing. Attorney Lane provided the original forms to the Retirement Office.
Attorney Ken Lane distributed a Death Audit Policy and updated Record Retention Policy for
review. Attorney Lane provided an overview of the Death Audit Policy and discussed the
procedure for viewing information regarding retiree deaths by Board members.
It was moved by Trustee Mark Parker and supported by Trustee Munroe to approve the Death
Audit Policy.
Adopted by the following vote: 6 — 0.
Attorney Lane discussed the updated Record Retention Policy and described how death
audit material is supposed to be handled.
Trustee Taylor inquired where current retirement records are maintained.
Karen Williams reviewed where and how the current retirement and employees records
are maintained.
Attorney Lane provided an update of the ERS Ordinance. Attorney Lane informed the
Board that the ERS Ordinance is under review by the City Attorney's Office. Attorney
Lane stated that Foster Swift had completed work on the Ordinance regarding the
Teamster 214 amendments. Attorney Lane stated that those amendments are now with
the City Attorney's Office.
Karen Williams reviewed the duty disability income verification policy and reported that
certification forms were due April 30, 2014. All duty disability retirees had submitted
their income certifications.
Employees Retirement System
Regular Meeting of May 15, 2014
Page 4
Karen Williams distributed an Election posting for the Parks, Planning and Neighborhood
Development Department Trustee that expires June 30, 2014. Petitions for the trustee position
would be available May 19, 2014 and due June 19, 2014. The posting also outlined primary
election and general election dates if needed. Trustee Carol Munroe holds the current trustee
position.
It was moved by Trustee Mark Parker and supported by Trustee Taylor to approve the Election
posting for the Parks, Planning and Neighborhood Development Department Trustee.
Adopted by the following vote: 6 — 0.
Angela Bennett submitted a memo and report to update the Employees Retirement System
Board regarding the 911 Dispatch transfer. Ms. Bennett discussed the 911 actuarial
determination and provided the actuarial report that was done by Ingham County in consultation
with the ERS Board's actuary, Boomershine Consulting Group. Ms. Bennett reviewed the
dispute over the calculation which centered on the change in actuarial assumption that took
place subsequent to the 911 Dispatch transfer agreement. The April 2014 report affirmed the
ERS Board opinion that the assumption changes should be included in the calculation and
affirmed the amount Boomershine Consulting Group calculated for the transfer of $968,348.
Ms. Bennett explained that the ERS Board took action at the ERS Board meeting of December
19, 2013 to transfer the $968,348 to the Ingham County pension system. Ms. Bennett also
reported that per previous discussion and the recommendations, the County had requested
investment earnings for the elapsed time subsequent to the operational transfer to the County.
Ms. Bennett reviewed two options for investment earnings: as of June 27, 2012 and as of
November 1, 2013. The Board discussed the two options.
It was moved by Trustee Dennis Parker and supported by Trustee Munroe to approve the
transfer of $102,510, as of November 1, 2013.
Adopted by the following vote: 6 — 0.
Karen Williams provided an update of the Arrivos Pension Software implementation.
Tegrit will suspend work on the project for approximately 11 weeks due to resource
constraints. Tegrit will set up User Testing in June, when the data goes live and death
audit information should be available at that time. Tegrit will provide resume work on
calculators in July.
Trustee Mark Parker reported that Tegrit is working to finalize data and information for
the June "go live" date. Trustee Parker stated that Tegrit has some programming
codes that it could not decipher. Trustee Parker asked Ms. Bennett if the accounting
manager would be available to work with Tegrit for several hours on the programming
code. Ms. Bennett stated that she needed to check with the accounting manager, but
she supports the project and understands the need to have this data migration.
Employees Retirement System
Regular Meeting of May 15, 2014
Page 5
Ms. Williams suggested that Tegrit put their questions in writing and she may be able to
assist with questions. Trustee Mark Parker stated that Tegrit was gathering that
information and should have it available to review.
Karen Williams reviewed the quarterly expenses report, and the securities lending
report for the month of April 2014.
It was moved by Trustee Boles and supported by Trustee McCaffery to adjourn the
meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:16 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 June 19, 2014
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 8:38 a.m.
Present: Dedic, Kraus, McCaffery, Munroe, D. Parker, M. Parker, Taylor — 7
Absent: Trustee Bernero, Boles
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office); Susan Brownlee; Estela
Escamilla, Denise Estee, T580 Retirees.
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It was moved by Trustee Taylor and supported by Trustee Mark Parker to approve the
Official Minutes of the Employees' Retirement System Regular Meeting ot, a x;715,`_".�?y
2014.
Adopted by the following vote: 7- 0 �=
It was moved by Trustee Dennis Parker and supported . by Trustee Mark P T-ker to
approve the Official Minutes of the Joint Employees' Retirement System and Pohoe dad
Fire Retirement System Office Regular Meeting of May 15, 2014
Adopted by the following vote: 7 — 0.
Trustee Dedic opened the floor for public comments for items on the agenda
Ms. Estela Escamilla, Teamster 580 retiree, provided a letter for the Retirement Board's
review regarding her concerns regarding health care changes effective August 1, 2014.
Ms. Escamilla requested assistance for concerns expressed in her letter. Ms. Escamilla
explained that retirees received notification that there would be health care premium
charges for those who retired after 2/20/2004. These retirees would follow active
employees. Ms. Escamilla expressed concern that retirees are not members of the
bargaining units and have no representation. Ms. Escamilla requested information
regarding why retirees are subject to negotiated contract changes. Ms. Escamilla
inquired about how the ERS Retirement Ordinance 292.37C health care is enforced.
Employees Retirement System
Regular Meeting of June 19, 2014
Page 2
Ms. Denise Estee submitted a letter with attachments for the Employees Retirement
System Board's review. Ms. Estee explained that she retired in 2005 with Community
Blue Option 2 as the base plan at no cost. Ms. Estee explained that she inquired about
these changes in 2010 but was informed that the Retirement Board does not govern
health. Ms. Estee reviewed the Retirement Ordinance 292.37C regarding health and
thus 292.37C health care and therefore contacted the ERS Board to address her
concerns and issues. Ms. Estee believed an error was made by Human Resources
regarding the interpretation of health care provisions in the Teamster 580 contract. Ms.
Estee had contacted Human Resources, and the City Attorney's Office to have these
issues reviewed. Ms. Estee stated that she should be covered by Retirement
Ordinance 292.37C, not the current Teamster 580 contract health care provision. Ms.
Estee stated that she should be covered by the same health care plan provisions that
were in place when she retired in 2005. Ms. Estee stated that she received information
from labor relations in 2010 that the tie -bar date for employees was 2/20/2004.
Ms. Susan Brownlee retired in 2001 and expressed concern that it was her
understanding that retirees left with the same insurance they had at retirement. Ms.
Brownlee expressed concern that the premium rising rates would take a significant
amount from retirees' pension. Ms. Brownlee stated that budget and financial issues
cannot be solved with passing the health costs to retirees. Ms. Brownlee felt that the
rising cost of health care should be a collaborative effect between state government, city
and other communities.
Ms. Carla Eno, retired in 2011, asked that health care changes be fair for all retirees.
Trustee Dedic moved item 14a up for Board discussion.
Trustee Dedic requested that legal counsel provide an explanation of the Employees
Retirement System jurisdiction on the issues of health care.
Attorney Ken Lane opined that the ERS Board does not have any authority or
responsibility for retiree health care. Health care issues are governed by a different
board and collective bargaining unit agreements that retirees were in before they
retired. Attorney Ken Lane opined that section 292.37C served as a place holder in the
Employees Retirement System Ordinance for when the city switched from the Defined
Benefit to Defined Contribution and then switched back. Attorney Lane opined that the
provision was for the employees who are in the VEBA. Attorney Lane interpreted that
retirees receive the same negotiated benefits that active employees have.
Trustee Dedic requested that all documents received from the retirees be forwarded to
legal counsel for review and formal response.
Trustee McCaffery inquired as to who made the decisions regarding health care.
Employees Retirement System
Regular Meeting of June19, 2014
Page 3
Trustee Taylor explained that decisions are made through the contract negotiation
processes which are ratified by the City Council. The retirees follow the active
employees under the contract that was negotiated.
Trustee Munroe clarified that there will always be a possibility for change for retirees
who follow active employees.
Trustee Dedic allowed Ms. Denise Estee to ask a question. Ms. Estee inquired if the tie
bar date of 2/20/2014 was a negotiated item and if so, why was it not in the contract.
Trustee Dedic stated that the question is not under the authority of the Board, but can
be answered by the appropriate party.
Trustee Dedic left the meeting. Trustee Mark Parker presided over the meeting.
Secretary=s Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 3
retired. Total active membership: 311. Total deferred: 65. 2 death(s) Donna J. Corbit,
died 5/7/2014, age 82, spouse of Executive Plan retiree; Loreda F. Groce, died
6/4/2014, age 87, spouse of NonBargaining retiree. Refunds made since the last regular
meeting amounted to $0.00. Retirement allowances paid for the month of May 2014,
amounted to $1,838,209.72. Total retirement checks printed for the ERS System: 892.
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 Dennis Parker to approve the
following request for Regular Age and Service:
Ronnie Farmer, (Transportation/UAW), 19 years, 4 months of service credits, age 59,
effective June 1, 2014. (From Deferred)
Jose Alberto Burunate-Hernandez (Public Service/UAW), 9 years, 2 months of service
credits, age 50, effective May 10, 2014. (Non Duty Death)
Sandraetta Benn, (Public Service/UAW) — 12 years, 5 months of service credits, age 59,
effective June 14, 2014
Deborah G. Welch (Transportation/UAW) — 16 years of service credits, age 59, effective
June 27, 2014
Shelly A. Roberts (Fire-Civilian/UAW) -20 years, 5 months of service credits, age 58,
effective July 1, 2014.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of June 19, 2014
Page 4
Karen Williams explained that the provisions of Non Duty death allowed a vested
member's beneficiary to receive pension benefits as if the member retired the previous
day.
There were no duty disability retirement requests.
Karen Williams reported that Applicant #2014-E0515 was listed as pending. The
disability subcommittee did not meet to review the request
Karen Williams reported that Applicant #2014-E0619 requested to be evaluated for non -
duty disability. Applicant #2014-E0619 was referred to the disability subcommittee
Trustee Mark Parker referred Applicant #2014-E0619 to the disability subcommittee.
It was moved by Trustee Dennis Parker and supported by Trustee Dennis Munroe to
recess the proceedings to allow the disability subcommittee to meet.
Adopted by the following vote: 6 — 0
The meeting resumed at 9:12 a.m.
Trustee Kraus reported that the disability subcommittee met and recommended that
Applicant #2014-E0515 and Applicant #2014-E0619 be sent to the medical director for
evaluation for non -duty disability.
It was moved by Trustee Dennis Parker and supported by Trustee Kraus to refer
Applicant #2014-E0515 and Applicant #2014-E0619.
Trustee Kraus reported that she attended the Spring MAPERS Conference and
participated in the actuary tract of workshops. Trustee Kraus enjoyed the presentation
of the 2008 financial collapse from the viewpoint from journalists.
Trustee Mark Parker reported that he enjoyed the networking opportunity with
Boomershine Consulting Group, Asset Consulting Group and legal counsel. Trustee
Parker also attended a workshop on REITs and fixed assets.
Trustee Taylor added that there was nothing really new in the subject matter or topics at
this meeting.
Trustee Dennis Parker gained a lot of the information and appreciated the experience.
Employees Retirement System
Regular Meeting of June 19, 2014
Page 5
Attorney Ken Lane distributed and discussed the PBI death audit policy and the new
record retention policy for the Trustee Handbooks. Attorney Lane also reported that the
Police and Fire Retirement system discussed moving from paper to electronic format for
trustee information.
Trustee Kraus reported that she investigated having a shared drive to place trustee
information. The information would be in a central location for access for everyone.
Trustee Kraus will further discuss her findings at the next meeting.
Attorney Ken Len reported that he attended MAPERS and he discussed the
amendments to Public Act 314 and legislation regarding the Detroit bankruptcy. New
legislation includes bill mandates new financial reporting; retirees retiring after 1/1/2015
will be calculated on base pay, employees hired after 2023 will need to be in defined
contribution plan. An investment committee with 20 -year terms will be established to
provide oversight and review.
Trustee Munroe expressed concern that the investment committee will have power over
the choices approved by the retirement board.
Attorney Ken Lane stated that under EVIP, the only items that remains is the dashboard
requirement.
Trustee Dedic returned and presided over the meeting.
Karen Williams reviewed the Election posting for the Parks, Planning and Neighborhood
Development Department Trustee that expires June 30, 2014. Petitions for the trustee position
were made available May 19, 2014 and due June 19, 2014. The posting also outlined primary
election and general election dates if needed. One nominating petition had been distributed.
Attorney Ken Lane distributed and discussed a Dewpoint Contract Extension. Attorney Lane
reported that the Police and Fire Board wished to add exclusivity section to the contract. The
contract extension was not to exceed $30,000
Adopted by the following vote: 7-0
Karen Williams reported that Asset Consulting Group provided October 1-3 as dates for the
Board's due diligence visit. Ms. Williams requested that member check that schedule to
determine who will attend, so travel arrangements can be made/
Trustee Mark Parker provided an update of the Tegrit Project. Trustee Parker distributed
information that announced the sale of part of the Tegrit Group to CBiz and also reported that
MERS is looking to sell the Tegrit technologies. Trustee Parker also updated the Board that the
current project manager is leaving the project, but will be replaced by Jeff Dixon who has been
with the project from the beginning.
Employees Retirement System
Regular Meeting of June 19, 2014
Page 6
Karen Williams reported to the ERS Board that the first report from PBI had been received. Ms.
Williams reviewed how the information is attained and accessed by the Retirement Board.
Karen Williams reported that Integrity Asset Management had been acquired by Victory Capital.
Ms. Williams provided a memo from Asset Consulting Group recommended that the ERS Board
sign the requested consent form, authorizing Integrity investment management agreement to
formally be transferred to Victory Capital.
It was moved by Trustee Kraus and supported by Trustee Taylor to accept the recommendation
of Asset Consulting Group and approve the consent form, authorizing Integrity investment
agreement to formally be transferred to Victory Capital.
Adopted by the following vote: 7 — 0.
Karen Williams reported that Integrity Asset Management requested to list the
Employees Retirement System as a client. Karen Williams reported that per the
management agreement, Integrity needed to receive client authorization.
It was moved by Mark Parker and supported by Trustee Dennis Parker to allow Integrity
Asset Management to list the Employees Retirement System as its client.
Adopted by the following vote: 7 — 0.
Karen Williams reviewed the Monthly Investment Report, and the securities lending
report for the month of May 2014.
The meeting adjourned at 9:45 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 July 17, 2014
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 8:37 a.m.
Present: Dedic, Kraus, Munroe, D. Parker (8:48), M. Parker, Taylor — 6
Absent: Trustee Bernero, Boles, McCaffery
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office). ° , ;
It was moved by Trustee Kraus and supported by Trustee Mark Parker to aprovE� the,'
Official Minutes of the Employees' Retirement System Regular Meeting ofi_Junq 1;j
2014.
Adopted by the following vote: 5- 0 E5 CD
Secretary=s Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers,,., k4ired.
Total active membership: 310. Total deferred: 66. 2 death(s) Edward Eastridge (UAW, retired
6/27/2002), died 6/10/2014, age 82, spouse to receive 50%; Robert Robbins (NonBargaining,
retired 11/1/1982), died 6/8/2014, age 89, spouse to receive 100%. Refunds made since the
last regular meeting amounted to $0.00. Retirement allowances paid for the month of June
2014, amounted to $1,850,114.65. Total retirement checks printed for the ERS System: 898.
Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
There were no requests for Regular Age and Service Retirements.
There were no duty disability retirement requests.
Karen Williams reported that Applicant #2014 —E0417 listed as pending had seen the
medical director. The disability subcommittee is waiting for the medical evaluation from
Dr. Roth.
Karen Williams reported that Applicant #2014-E0515 listed as pending has submitted
his medical documentation for review by the medical director. The applicant is awaiting
an appointment with Dr. Roth.
Employees Retirement System
Regular Meeting of July 17, 2014
Page 2
Karen Williams reported that Applicant #2014-E0619 has not submitted his medical
documentation for review by the medical director.
There were no requests for refunds of accumulated contributions.
It was moved by Trustee Mark Parker and supported by Trustee Taylor to excuse
Trustee Howard McCaffery from the July Employees' Retirement System Board
Meeting.
Adopted by the following vote: 5 — 0.
Ms. Williams announced the Fall MAPERS Conference would be held September 14 -
16 in Acme, Michigan. Ms. Williams requested that application and requests be
submitted before the August 15, 2014 deadline for early registration.
Attorney Ken Lane has drafted a formal response for the retirees that attended the
meeting last month who had concerns regarding health. Attorney Lane stated that he
re -stated that the ERS Board did not have authority over health care administration.
Ms. Williams updated the ERS Board regarding the Parks, Planning and Neighborhood
Development Trustee position. Ms. Williams announced that the Retirement Board
received one valid nominating petition from Carol Munroe. The petition was reviewed
by the Secretary of the Board and memo submitted declaring Ms. Munroe as the
Trustee in accordance with the Employees Retirement System election rules.
It was moved by Trustee Mark Parker and approved by Trustee Taylor to confirm Carol
Munroe as the Parks, Planning and Neighborhood Development Trustee for the term
ending June 30, 2018
Adopted by the following vote: 5 — 0.
Trustee Dennis Parker arrived to the meeting.
Karen Williams updated the ERS Board regarding the Due Diligence Visit to Asset
Consulting Group scheduled for October 1 -3. Ms. Williams requested that members,
who plan to attend, contact the Retirement Office so that travel arrangements could be
made from the group. Ms. Williams will provide travel options for members to consider.
Attorney Ken Lane updated the ERS Board regarding the GASB 67/68 Fee agreement
sent by Boomershine Consulting Group. GASB 67 must be implemented for 2014 and
the costs would be between $2600 and $4000. The GASB 68 must be implemented for
2015.
Employees Retirement System
Regular Meeting of July 17, 2014
Page 3
Attorney Ken Lane looked at the contract and that stated that Boomershine Consulting
Group is responsible for delivering an actuarial valuation in compliance with current
GASB regulations. Attorney Lane believed that there should not be any additional
charges. Attorney Lane discussed the fees with the Police and Fire System who
instructed him to contact Greg Stump regarding the contract. The ERS Board instructed
Attorney Lane to contact the actuary regarding the GASB fees.
Trustee Antonia Kraus provided a presentation to the ERS Board regarding the
Retirement Board shared folder, R:Drive. Trustee Kraus explained that the shared
folder would be a central location for trustees that contain agendas, minutes and
information. The trustees who are not city employees would be able to get agenda and
minutes from the web page. Attorney Kraus stated that a list of all trustees who have
city emails and access could view the shared drive.
Trustee Munroe inquired if there could be a trustee link that is password protected.
Attorney Ken Lane would include Trustee handbooks electronically on the shared drive.
Karen Williams Trustee Mark Parker updated the Board regarding the sale of Tegrit
Technologies. MERS has decided to negotiate the sale to a group of Tegrit senior management
employees. Trustee Parker stated that for the sale to be completed, the City of Lansing
Retirement Board needed to sign a consent form to assign the contract to the new company,
Tegrit Software Ventures. .
Attorney Ken Lane stated that the current contract required the City of Lansing Retirement
Boards consent to assign it to the new company. Attorney Lane stated that new company will
keep the existing terms of the current contract. Attorney Lane informed the ERS Board that the
Police and Fire Retirement System Board has agreed to the assignment and signed the consent
form.
It was moved by Trustee Mark Parker and supported by Trustee Kraus for the Employees
Retirement System to sign the consent form and assign the current Tegrit contract to the new
company.
Adopted by the following vote: 6 — 0.
Ms. Angela Bennett provided an update of the 911 Dispatch Transfer. Ms. Bennett informed the
ERS Board that it approved the transfer interest earnings through October 2013 to Ingham
County. Legal counsel advised that the interest earnings not be transferred until Ingham County
formally adopts a resolution as required to accept the liability. Ingham County had decided to
wait until health care issues are resolved before the resolution is acted upon.
Attorney Lane stated that the principal pension assets have been transferred
Employees Retirement System
Regular Meeting of July 17, 2014
Page 5
Karen Williams reviewed the Monthly Investment Report, and the securities lending
report for the month of June 2014.
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 `
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Regular Meeting August 17, 2014 `_-3 `_T
City Council Conference Room Thursday, 8:30 a.m. c> a
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:34 a.m.ii
Present: Boles, Kraus, McCaffery, Munroe, M. Parker, Taylor — 6
Absent: Trustee Bernero, Dedic, D. Parker
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office).
Trustee Mark Parker presided.
It was moved by Trustee Kraus and supported by Trustee Boles to approve the Official
Minutes of the Employees' Retirement System Regular Meeting of July 17, 2014.
Adopted by the following vote: 5-0
Trustee Parker requested to move the voting items first with the consent of the
Employees Retirement System Board.
It was moved by Trustee Kraus and supported by Trustee Boles to approve the following
requests for Regular Age and Service Retirements:
Dorothy Boone, (Planning/Non Bargaining Supervisory), 9 years, 8 months of service
credits, age 65, effective August 1, 2014.
Paul E. Stokes, (Public Service/Teamster), 30 years, 6 months of service credits, age
55, effective August 2, 2014.
Ralph L. Gregus (Planning/Teamster), 18 years, 1 month of service credits, age 65,
effective August 30, 2014.
Stephanie Robinson (Finance/Teamster), 10 years, 10 months of service credits, age
59, effective September 7, 2014.
David G. Kos (Public Service/UAW), 27 years, 7 months of service credits, age 64,
effective September 13, 2014.
Employees Retirement System
Regular Meeting of August 21, 2014
Page 2
It was moved by Trustee Kraus and supported by Trustee Boles to approve the following
requests for Regular Age and Service Retirements (cont.):
Guillermo Z. Lopez (Human Relations -Community Services/Teamster), 23 years, 8
months of service credits, age 64, effective September 13, 2014.
Robert G. Pfund, (Public Service/UAW), 25 years of service credits, age 53, effective
September 13, 2014. (w/purchase of 1 year, 5 months of service credits).
Richard Stoudt (Public Service/UAW), 27 years of service credits, age 59, effective
September 13, 2014.
Terry Thelen (Public Service/UAW), 29 years of service credits, age 54, effective
September 13, 2014.
Stan S. Shuck (Public Service/UAW), 25 years of service credits, age 55, effective
September 15, 2014 (w/purchase of 2 months of service credits)
Charles C. Hinton (Public Service/UAW), 25 years of service credits, age 55, effective
September 24, 2014, (with purchase of 3 months of service credits)
Barbara Childs (Planning/UAW) 16 years, 9 months of service, age 62, effective
September 27, 2014.
Maria Villarreal (Planning/UAW), 15 years, 3 months of service credits, age 67, effective
September 27, 2014.
Adopted by the following vote: 5 — 0
Trustee Kraus noted for the minutes that Ms. Stephanie Robinson worked for 15 years
with the City of Lansing.
Trustee Taylor arrived to the meeting.
Ms. Williams reported that the medical report for Applicant #2014 — E0417 had been
submitted to the disability subcommittee for review.
Ms. Williams reported that Applicant #2014-E0515 has been scheduled to see the
Medical Director.
Ms. William reported that the Retirement Office is waiting for the medical release and
requested documents from Applicant #2014 — E0619.
Employees Retirement System
Regular Meeting of August 21, 2014
Page 3
Trustee Mark Parker recessed the Employees Retirement System Board meeting to
allow the disability subcommittee to discuss the medical report for Applicant #2014-
E0417.
The ERS Board meeting recessed at 8:41 a.m.
The ERS Board meeting resumed at 8:43 a.m.
It was moved by Trustee Taylor and supported by Trustee Kraus to approve Applicant
#2014 — E0417 for Non -Duty Disability retirement upon the recommendation of the
Medical Director.
Adopted by the following vote: 6 — 0
Asset Consulting Group (ACG) provided a recommendation for the City of Lansing
Employees' Retirement System Board quarterly cash flow withdrawals.
It was moved by Trustee McCaffery and supported by Trustee Munroe to redeem
$2,750,000 from the Northern Trust S&P 500 Index portfolio and to redeem $2,750,000
from the T. Rowe Price portfolio based upon the recommendation from Asset Consulting
Group.
Adopted by the following vote: 6 — 0
Trustee Boles left the meeting.
Secretary=s Report. 1 new member(s), 0 reinstatement(s), 0 refund(s),. 0 transfers, 0 retired.
Total active membership: 310. Total deferred: 67. 2 death(s) Edward Eastridge (UAW, retired
6/27/2002), died 6/10/2014, age 82, spouse to receive 50%; Peggy Klimecky, died 6/1/2014,
age 75, spouse of Executive Plan retiree. Refunds made since the last regular meeting
amounted to $0.00. Retirement allowances paid for the month of July 2014, amounted to
$1,840,178.17. Total retirement checks printed for the ERS System: 895. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations
orders certified: 0.
It was moved by Trustee Taylor and supported by Trustee Kraus to excuse Trustee
Scott Dedic and Trustee Dennis Parker from the August Employees' Retirement System
Board Meeting.
Adopted by the following vote: 5 — 0.
Ms. Williams updated the Employees Retirement Board regarding the registration
materials for Fall MAPERS Conference and the IFEBP Annual Conference.
Attorney Ken Lane updated the Employees Retirement System Board regarding
Boomershine Consulting Group request for additional fees for GASB standard reports.
Attorney Lane opined last month that the ERS Board was not required to pay additional
fees for actuarial valuation to comply with GASB standard. Attorney Ken Lane
contacted Greg Stump who explained that it is an additional report that would
supplement the annual report . The additional report would outline the requirements
and the steps taken to comply with the new GASB standards.
Angela Bennett stated that she would contact Greg Stump for further clarification to see
if the additional report is necessary.
Attorney Lane reported that his office is in the process of scanning the trustee handbook
for an electronic version.
Karen Williams updated the Board regarding the Tegrit Software project. Tegrit has started the
transition to a new project manager. Tegrit has started development of the Arrivos Calculators
and continues work with the PBI (death audit vendor) to automate the process.
Karen Williams reviewed the Quarterly Expense Report and the securities lending
report for the month of July 2014.
The meeting adjourned at 9:01 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Mark Parker, Vice Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting September 25, 2014
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City Council Conference Room Thursday, 8:30 a.m.
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10th Floor, City Hall
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Lansing, MI
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The Board met in regular session and was called to order at 8:32 a.m.
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Present: Boles, McCaffery, Munroe, M. Parker, Taylor — 5
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Absent: Trustee Bernero, Dedic, D. Parker, Kraus
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office).
Trustee Mark Parker presided.
It was moved by Trustee Taylor and supported by Trustee Munroe to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of August 21,
2014.
Adopted by the following vote: 5-0
It was moved by Trustee Boles and supported by Trustee Taylor to approve the Official
Joint Minutes of the Police and Fire Retirement System and the Employees Retirement
System Meeting of August 19, 2014.
Adopted by the following vote: 5 — 0
Trustee Parker requested to move the voting items first with the consent of the
Employees Retirement System Board.
It was moved by Trustee McCaffery and supported by Trustee Boles to approve the
following requests for Regular Age and Service Retirements:
Earleane Brodie (Public Service/UAW), 24 years, 6 months service credits, age 59,
effective September 30, 2014.
Steven Hooks, (Public Service/UAW), 20 years, 1 months of service credits, age 62,
effective September 30, 2014.
Employees Retirement System
Regular Meeting of September 25, 2014
Page 2
It was moved by Trustee McCaffery and supported by Trustee Boles to approve the
following requests for Regular Age and Service Retirements (continued):
Thomas E. Weber, (Public Service/Teamster), 11 years, 3 months of service credits, age
62, effective October 1, 2014.
Adopted by the following vote: 5 — 0
Ms. Williams reported that the medical report for Applicant #2014 — E0515 had been
submitted to the disability subcommittee for review.
Trustee Taylor reported that the disability subcommittee had not met to review the
medical report and the item was returned to pending.
Ms. Williams reported that the Retirement Office is waiting for the medical release and
requested documents from Applicant #2014 — E0619.
Ms. Williams reported that Mr. Richard Gregg, Public Service has requested a return of
his accumulated contributions of $4,325.26. The member was not vested.
It was moved by Trustee Boles and supported by Trustee McCaffery to approve the
request of Mr. Richard Gregg, Public Service for the return of his accumulated
contribution of $4,325.26.
Trustee Boles inquired regarding an explanation of what happens to the service credits
of the employee after the contribution has been withdrawn.
Ms. Williams explained that members who separate from the system must file a
withdrawal form with the Employees Retirement System for their contributions. A
member forfeits all service credits and rights to pension and health care by withdrawing
retirement monies. The member can no longer use the Reciprocal Retirement Act to
qualify for a City of Lansing pension. Members can roll retirement monies into an IRA.
Adopted by the following vote: 5 — 0.
Ms. Williams reported that Trustee Dedic and Trustee Antonia Kraus had contacted the
Retirement Office to be excused from the September meeting. Trustee Dennis Parker
was reported to be with Trustee Dedic and also requested an excuse. Trustee Kraus
does not need to be excused because she is ex -officio.
Employees Retirement System
Regular Meeting of September 25, 2014
Page 3
It was moved by Trustee Boles and supported by Trustee Munroe to excuse Trustee
Dedic, Trustee Kraus and Trustee Dennis Parker from the September Employees
Retirement System meeting.
Adopted by the following vote: 5 - 0.
Attorney Ken Lane discussed a request to the Employees Retirement System from
Robbins Geller Rudman & Dowd to pursue a securities litigation derivative case.
Attorney Lane indicated that the suffered losses do not meet the threshold set the
Retirement Boards.
Attorney Lane also reviewed a news article regarding Robbins Geller Rudman & Dowd,
who was sanctioned by the California courts. Attorney Lane informed the Board that
Milberg law firm and Northern Trust also perform fraud monitoring for the Boards'
securities.
Attorney Lane recommended that the Employees Retirement System Board decline the
request to pursue the derivative case. Attorney Lane also indicated that the Police and
Fire Retirement Board had voted to terminate its contract with Robbins Geller Rudman
& Dowd.
Trustee Munroe inquired if the municipality listed in the news article, that brought the
lawsuit, was sanctioned. Attorney Lane stated that the municipality had not been
sanctioned, but admonished because they did not excise due diligence.
Trustee Boles inquired if the Joint Retirement Boards could discuss a possible
replacement for Robbins Geller Rudman and Dowd at its next meeting.
It was moved by Trustee Boles and supported by Trustee Munroe to decline the
derivative litigation request, to terminate its agreement with Robbins Geller Rudman &
Dowd, and to discuss replacement of the law firm on the next Joint Agenda.
Adopted by the following vote: 5-0
Ms. Williams described the Minute Master Services provided by Gabriel, Roeder and
Smith. The fee for 2014 service was quoted as not to exceed $3,100. The Minutes
Master Service was approved at the Police and Fire Retirement Meeting.
It was moved by Trustee Boles and supported by Trustee Taylor to approve the 2014
Minute Master Service fee as quoted to not exceed $3,100.
Adopted by the following vote: 5-0
Employees Retirement System
Regular Meeting of September 25, 2014
Page 4
Trustee Mark Parker reported that Tegrit requested the electronic version of the
reduction factors used for optional forms of the payment of benefits. The factor sheet
currently exists in paper form, but needed to be loaded into the Arrivos Calculator
Database. Greg Stump, Boomershine Consulting Group, recommended that new
reduction factors should be considered based upon updated mortality tables.
Attorney Ken Lane explained that the Retirement Office requested a legal review of the
Ordinance and the union agreements to make certain that a change in the reduction
factors would not violate any contractual language.
It was moved by Trustee Boles and supported by Trustee Munroe that Boomershine be
allowed to calculate updated reduction factors pending legal review. Trustee Munroe
offered a friendly amendment that was accepted to also make the approval of reduction
factor calculation contingent upon notifying the Board regarding the fee for the service.
Adopted by the following vote: 5 - 0
Karen Williams reported that Tegrit has completed work on the Calculator Engine
technical specifications and have provided screen designs for the Calculator and Web
Estimator. Ms. Williams reviewed the draft calculation sheets that would be produced
from the Arrivos Software. She requested that Trustee review the drafts for their input.
Secretary=s Report. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0
retired. Total active membership: 314. Total deferred: 68. 1 death(s) Stanley Jenks
(Teamster, retired 1/25/2003), died 9/3/2014, age 72, no beneficiary. Refunds made
since the last regular meeting amounted to $0.00. Retirement allowances paid for the
month of August 2014, amounted to $1,837,591.46. Total retirement checks printed for
the ERS System: 894. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 0. Eligible domestic relations orders certified: 0.
There were no requests for duty disability.
Trustee Munroe provided an oral report of the MAPERS Fall Conference. Trustee
Munroe attended workshops that discussed an analysis of the Defined Contribution
versus the Defined Benefit plan, and an actuarial seminar.
Trustee Parker discussed the workshop he attended at MAPERS regarding alternative
investments.
Attorney Ken Lane discussed the legislative topics that were discussed at MAPERS.
Attorney Lane highlighted Public Act 314 section regarding the establishment of an
investment committee that applies mainly to the City of Detroit. The investment
committee would have the ability to overrule the selection by the Board of Trustees.
Trustee Munroe expressed concern regarding the future implication of the investment
committee on other municipalities.
Ms. Williams updated the Employees Retirement Board regarding the registration
materials for the IFEBP Annual Conference and reviewed the agenda for the Due
Diligence Visit to Asset Consulting Group.
Attorney Ken Lane reported that the City Attorney's Office was updating the Retirement
Ordinance, in accordance with the most recent contracts that have been ratified. The
draft will need to go to the Mayor and City Council before being referred back to the
Employees Retirement Office for review. Attorney Lane also reported that he submitted
the trustee handbook in electronic form to the Retirement Office.
Attorney Lane updated the Board that he received an email that Ingham County has
passed the 911 resolution.
Ms. Bennett added that the Employees Retirement System would be transferring the
interest agreed upon to Ingham County.
Ms. Williams reported that the Police and Fire Retirement Board discussed having a minimum
balance of $1 million in the Securities Lending Account and transferring the remainder
Karen Williams reviewed the Quarterly Expense Report and the securities lending
report for the month of July 2014.
Ms. Williams also reported that Northern Trust has sent notice to the Employees
Retirement System regarding amendments to the Securities Lending account. Ms.
Williams provided the information to Asset Consulting Group for review and the ERS
Board should receive a recommendation for what action is required.
The meeting adjourned at 9:26 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Mark Parker, Vice Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting October 23, 2014
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 8:37 a.m.
Present: Dedic, Kraus, McCaffery, McIntyre, D. Parker (8:40), M. Parker — 6
Absent: Trustee Bernero, Boles, Munroe
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office); Greg Stump,
Boomershine Consulting Group.
It was moved by Trustee McCaffery and supported by Trustee Parker to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of September
25, 2014.
Adopted by the following vote: 5-0
Secretary=s Report. 4 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 0
retired. Total active membership: 305. Total deferred: 69. 1 death(s) Vesta Wares,
died 9/23/2014, age 92, spouse of Nonbargaining retiree. Refunds made since the last
regular meeting amounted to $4,325.26. Retirement allowances paid for the month of
August 2014, amounted to $1,874,318.48. Total retirement checks printed for the ERS
System: 908. Eligible domestic relations orders received: 0. Domestic relations orders
pending: 0. Eligible domestic relations orders certified: 0.
There were no public comments.
There were no requests for duty disability retirements.
Ms. Williams reported that the medical report for Applicant #2014 — E0515 had been
submitted to the disability subcommittee for review.
Trustee Kraus reported that the medical report for Applicant #2014-E0515 had been
reviewed by the disability subcommittee. The Human Resource Director confirmed that
there were no available jobs within the City of Lansing to accommodate the applicant.
The disability subcommittee recommended to the Employees Retirement System Board
to confer with the medical director's report and approve the non -duty application.
Employees Retirement System
Regular Meeting of October 23, 2014
Page 2
It was moved by Trustee Kraus and supported by Trustee Parker to concur with Medical
director's report and approve the non- duty application of Applicant #2014 — E0515.
Adopted by the following vote: 5-0
Ms. Williams reported that the Retirement Office had received some documents and the
medical release from Applicant #2014 — E0619. The applicant's documents had been
forwarded to the Medical Director for review and scheduling.
There were no requests for refunds of accumulated contribution.
Ms. Williams reported that Trustee Munroe and Trustee Boles had contacted the
Retirement Office to be excused from the October meeting. Trustee Boles does not
need to be excused because she is appointed by City Council.
It was moved by Trustee Kraus and supported by Trustee Parker to excuse Trustee
Munroe from the October Employees Retirement System meeting.
Adopted by the following vote: 6-0
Trustee Dennis Parker provided a report of his attendance at the IFEBP Annual
Conference. Trustee Parker attended workshops that focused on the affordable health
care act and comparisons between the Defined Contribution and Defined Benefit plans.
Trustee Scott Dedic provided a report of his attendance at the IFEBP Annual
Conference. Trustee Dedic remarked that this year's conference did not focus as much
on the public sector and he attended workshops that focused on the affordable care act
and bond investments.
Trustee Kraus provided a report of the Asset Consulting Group (ACG) due diligence
meeting. The due diligence meeting provided a two-day intensive review of the
Employees Retirement System portfolio. The trustees who attended had a timely
review of the bond markets and stated the ACG would have recommendations for the
Board's portfolio.
Trustee Mark Parker discussed ACC's recommendation regarding the Employees
Retirement System asset allocation mixes and a suggestion to add additional
investments of commodities and equity long/short for further diversification.
Trustee Dennis Parker also discussed ACC's recommendation for asset diversification
and Trustee Dedic concurred with the information expressed in his report.
Employees Retirement System
Regular Meeting of October 23, 2014
Page 3
Attorney Ken Lane provided a memo at the request of the Board's chairperson that
researched if there was a conflict of interest to have the City Attorney to serve as the
Human Resource Director and Trustee to the Employees Retirement System.
Attorney Lane explained the definitions of conflict of interest for a public employee and
the Michigan Incompatible Public Office Act 566.
Attorney Lane opined that there is not a conflict of interest that would preclude the same
person from serving as both Human Resources Director (and member of the Board) and
as the City Attorney. Additionally, Attorney Lane concluded that the offices of Human
Resources Director and City Attorney are not incompatible offices. Attorney Lane that
there is a slight possibility of incompatible offices only if Trustee McIntyre had to
repeatedly abstain from voting.
Trustee Dedic stated the he requested the due diligence review because the ERS Board
deals with disability retirement cases that may also be under review by the
administration.
Attorney Ken Lane updated the Employees Retirement System regarding the
termination of Robbins Geller Rudman & Dowd. Attorney Lane received a response
from Robbins Geller requesting that attend the November Joint meeting to provide
information upon the sanctions reported in the news. Attorney Lane informed the law
firm to process the termination as the Board requested and he would inform them of the
Board's decision regarding the November meeting. Attorney Lane indicated that the
agreement with the securities monitoring firm stated that upon termination, the Board
must receive a letter indicating the all portfolio information for the Employees
Retirement System had been destroyed.
The Employees Retirement System discussed and declined Robbins Geller Rudman &
Dowd request to attend the November Joint Board meeting.
Trustee Dedic indicated that in the future, he would prefer that the Employees
Retirement System Board allow firms who face termination the opportunity to be
interviewed by trustees, as a part of Board trustees' due diligence.
Attorney Lane reported to the Employees Retirement System Board that Ms. Angela
Bennett received a request from the Lansing financial health team working with a group
of Michigan State University to review actuarial valuations from prior year. Ms. Bennett
contacted legal counsel to review the request. Attorney Lane and Ms. Bennett met with
the students and informed them that only the public valuation would be made available.
Employees Retirement System
Regular Meeting of October 23, 2014
Page 4
Information that has not been approved and made public by the Board, such as member
and retiree data information would not be supplied. Attorney Lane stated that the prior
valuations are public records.
Ms. Bennett added that the students are working on a project that includes projections
and reviewing trends. Ms. Bennett stated that the project is only for the semester and
would not go into much depth. Ms. Bennett assured the ERS Board that students would
not be looking at current data.
Attorney Lane discussed that he also shared the information with the Police and Fire
Board. The report would be provided to Lansing financial team.
Karen Williams submitted the Northern Trust Custodian Bank SAS 70 Report for review by the
trustees per ERS Board Policy. Ms. Williams reported that the Board generally accepts the
report each year after legal and information technology review.
Attorney Ken Lane stated that he will review the SAS 70 Report and provide his
recommendation at the next meeting. The ERS Board will also review the report and discuss
at the next meeting. Trustee Dedic referred the SAS 70 report to pending.
Karen Williams reported that the 2015 annual membership dues for the following
organizations: MAPERS, $100; NCPERS, $250; and IFEBP, $835 (split between ERS and
Police and Fire Retirement Boards)
It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to
approve the annual membership dues for 2015 and pay the fees from the Board's
administrative account.
Adopted by the following vote: 6-0
Trustee Dedic moved the Asset'Consulting Group Investment materials to pending until
they can be reviewed by trustees and discussed at the November Joint meeting.
Mr. Gregory Stump, Boomershine Consulting Group provided an overview of the
Employees Retirement System Actuarial Valuation as of December 31, 2013. Mr.
Stump discussed the current status of the system, reviewing the plan participants,
retirees and employees, and the investment experience for 2013.
Mr. Stump recommended that ERS Board implement changes to the investment return
assumption to 7.5% with a 3.0% inflation assumption and re -set the asset smoothing
strategy to recognize pre -2013 gains.
Employees Retirement System
Regular Meeting of October 23, 2014
Page 5
Trustee Kraus inquired if the Employees Retirement Board wanted to know what the
Police and Fire Retirement Board decided. The ERS Board requested the information.
Trustee Kraus stated that the Police and Fire Board moved to 7.6% with a 3.1 % inflation
rate assumption with the asset smoothing re -set.
Trustee Dedic requested an opinion from the City administration.
Ms. Bennett reviewed the valuation numbers with Boomershine Consulting Group and
provided four potential rate assumption change scenarios and its impact on the city's
contribution and budget. Ms. Bennett suggested either the 7.7% with a 3.2% inflation
assumption or the 7.6% with 3.1% inflation rate assumption without the asset
smoothing. Ms. Bennett recommended no asset smoothing because of the ERS current
funding status.
Trustee Kraus recommended 7.6% with the 3.1% inflation rate assumption without the
re -set smoothing.
Trustee Mark Parker inquired to Mr. Greg Stump if he would agree with the 7.6% with
the 3.1% inflation rate assumption without the re -set smoothing, and to move toward
7.5% with the 3.0% inflation rate at a later time. Mr. Stump said that he would agree
with the recommendation at 7.6%.
Attorney Lane opined that each trustee is a fiduciary to the system. If trustee approve
decisions that make it impossible for the city to make its contributions, those decision
would not be good for the system.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
investment rate of assumption at 7.6% with 3.1% inflation rate assumption with the
asset re -set to buy down the contribution.
Adopted by the following vote: 6-0
Mr. Stump reviewed the administrative tables that detail factors for optional forms of
benefit. He recommended no change to the tables because it did not appear that the
factors were based on mortality tables.
Mr. Stump reviewed the funding and contribution outlook. Mr. Stump will send a funding
policy for the Board's review.
Karen E. Williams reviewed a draft of the retirement calculation sheet that would be
produced from the Tegrit Software. Greg Stump, Boomershine Consulting Group was
able to provide an electronic version of the reduction factors used for optional forms of
the payment of benefits. Ms. Williams updated the Board regarding the project status.
Trustee Kraus requested that the beneficiary name be included on the retirement
calculation sheet. Trustee Kraus also suggested that the disclaimer provided on the
retirement sheet include that the beneficiary designation was irrevocable.
Karen Williams reported that Tegrit has completed work on the Calculator Engine
technical specifications and have moved on to retirement processes that would include
payroll interface.
Karen Williams reviewed the Monthly Financial Report and the securities lending report for the
month of September 2014.
The meeting adjourned at 9:56 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 November 20, 2014
City Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
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Lansing, MI?
The Board met in regular session and was called to order at 8:41 a.m.
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Present: Boles, Dedic, Munroe, Dennis Parker, Mark Parker — 5
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Absent: Trustee Bernero, Kraus, McCaffery, McIntyre
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney -,Kenneth
Lane, Clark Hill (representing the City Attorney's Office).
It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to
approve the Official Minutes of the Employees' Retirement System Regular Meeting of
October 23, 2014.
Adopted by the following vote: 5-0
There were no public comments.
Secretary=s Report. 3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 11
retired (sept/oct). Total active membership: 297. Total deferred: 68. 1 death(s) Ellen
Baum, died 10/3/2014, age 95, spouse of Teamster retiree. Refunds made since the
last regular meeting amounted to $4,325.26. Retirement allowances paid for the month
of October 2014, amounted to $1,872,769.85. Total retirement checks printed for the
ERS System: 909. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Mark Parker and supported by Trustee Boles to approve the
requests for Regular Age and Service retirements:
Stephanie L. Whitbeck, (HRCS/Teamster), 12 years, 11 months of service credits,
age 64, effective November 1, 2014 (From Deferred)
Katherine Lipsky (Public Service/Teamster), 11 years, 1 months of service
credits, age 60, effective November 1, 2014.
Employees Retirement System
Regular Meeting of November 20, 2014
Page 2
It was moved by Trustee Mark Parker and supported by Trustee Boles to approve the
requests for Regular Age and Service retirements (continued):
Ronna Shively, (Police/Civilian-Teamster), 11 years, 2 months of service credits, age 66,
effective December 5, 2014.
Adopted by the following vote: 5-0
There were no requests for duty disability retirements.
Ms. Williams reported that the Retirement Office had received some documents and the
medical release from Applicant #2014 — E0619. The applicant's documents had been
forwarded to the Medical Director for review and scheduling.
Ms. Williams reported that Ms. Angela Matthews, FOP 911 had submitted a request for
refund of her accumulated contributions of $529.60. Ms. Matthews was not vested.
It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to
approve the following Request for Refund of Accumulated Contributions:
Angela Matthews, FOP 911, $529.60
Adopted by the following vote: 5-0.
Ms. Williams reported that Trustee Kraus and Trustee McCaffery had contacted the
Retirement Office to be excused from the November meeting. Trustee Kraus does not
need to be excused because she is ex -officio.
It was moved by Trustee Mark Parker and supported by Trustee Boles to excuse
Trustee McCaffery from the November Employees Retirement System meeting.
Adopted by the following vote: 5-0
Attorney Ken Lane reported that in 2008 the retirement systems applied for independent
federal employer identification numbers. Attorney Lane had been using those numbers
on investment contracts. Retirees receive their benefits under the City of Lansing
federal employer identification number and it has been determined with the assistance
of administration that using the independent federal numbers can be problematic for
retirees filing taxes. The City Attorney researched the issue and determined that there
was no legal reason for separate federal employer identification numbers for the
retirement systems. The City Attorney that the retirement systems could return to using
the City of Lansing federal employer identification number.
Employees Retirement System
Regular Meeting of November 20, 2014
Page 3 _
Trustee Boles inquired if the retiree benefits could be transferred to the separate
Retirement Board federal employer identification numbers.
Attorney Lane stated that it would be smoother to keep the retirees with the City of
Lansing federal employer identification number. Since the time of the separate
identification numbers, the State of Michigan now taxes retiree pensions. Attorney Lane
stated that with the assistance to Asset Consulting Group, a letter has been drafted to
inform investment managers.
Attorney Lane reported that Public 314 requires that the City of Lansing retirement
systems create an annual budget. Attorney Lane stated that he would provide a draft
budget at the next meeting.
Attorney Lane reported that he distributed a letter from Robbins, Gellar, and their
request to come to the Joint Meeting. At that time, the Employees Retirement Board
declined the request. Robbins Gellar has contacted individual trustees requesting if
they could come address the Retirement Boards at the Joint meeting. The retirement
board noted if they did come to the meeting, they could speak during public comment.
Karen Williams submitted the Northern Trust Custodian Bank SAS 70 Report for review by the
trustees per ERS Board Policy at the last meeting. Ms. Williams reported that the Board
generally accepts the report each year after legal and information technology review.
Attorney Lane indicated that he reviewed and informed the Employees Retirement System that
report complied with Public Act 314 and he had no issue with it. Attorney Lane noted that the
information technology information is the same as last year.
It was moved by Trustee Mark Parker and supported by Trustee Boles to accept the
Northern Trust Custodian Bank SAS 70/Custody and Fund services SOC 1 Report.
Adopted by the following vote: 5 — 0
Karen Williams reported that the Finance Director, Angela Bennett has provided a
memo notifying the Employees Retirement System Board that the 2014 pension
contribution.
Ms. Angela Bennett stated that $10,300,000 was contributed as of November 3, 2014.
Ms. Bennett informed the Employees Retirement System Board that once the actuarial
valuation has been finalized and accepted by trustees, the remaining balance of
$247,556 will be contributed
Ms. Williams distributed the 2015 Schedule of Board Meeting dates for review and
approval.
Employees Retirement System
Regular Meeting of November 20, 2014
Page 4
It was moved by Trustee Dennis Parker and supported by Trustee Mark Parker to
accept the 2015 Schedule of Board Meeting dates.
Adopted by the following vote: 5 - 0
Karen Williams distributed the Employees Retirement System Actuarial Valuation as of
December 31, 2013. Ms. Williams indicated that Boomershine also providing a funding
policy for the Board's review.
Trustee Dedic requested Ms. Bennett's comments regarding the report.
Ms. Angela Bennett reviewed a list of recommendation for the actuarial valuation that
included amendments to the assumptions and methods, member contributions, normal
retirement benefit formula, post-retirement benefit adjustment section. Ms. Bennett also
requested that the actuary include the schedule of employer contributions and schedule
of funding progress in both the valuations and the new GASB reports for transparency
and consistency.
Trustee Boles agreed that the schedules should remain in the valuation, because they
have been historically included.
Trustee Dedic requested that the Retirement analyst contact Boomershine Consulting
Group and provide the list of recommendations for the actuarial valuation.
Attorney Ken Lane reviewed the funding policy and it complies with Public Act 314.
Attorney Lane notified Mr. Greg Stump suggested amendments to the funding policy to
clarify language.
The Employees Retirement Board agreed to discuss the actuarial valuation and funding
policy at the next meeting, once the suggestions amendments had been addressed.
Karen E. Williams reviewed the status of the Tegrit Software project. Tegrit have
completed drafts for the retirement calculator and retirement estimator. Trustee Mark
Parker reviewed the retirement estimator draft and provided suggestions that will be
incorporated in the Arrivos software. Tegrit continues to work on the data migration and
will provide an updated schedule for the project.
Attorney Ken Lane reported a request from Tegrit to use the City of Lansing Retirement
Boards name and City logo in its promotional material. Attorney Lane reported that he
reviewed the request with the City Attorney's Office and the City logo could be used
with permission. Attorney Lane indicated that Police and Fire decided to wait until the
completion of the project before providing permission to use the City's name and logo.
Employees Retirement System
Regular Meeting of November 20, 2014
Page 5
It was moved by Trustee Munroe and supported by Trustee Dennis Parker to wait until
the completion of the project before permission is granted to Tegrit to use the City of
Lansing Employees Retirement System name and logo.
The Asset Consulting Group Investment Materials was moved to the Joint Board
meeting.
Karen Williams reviewed the City of Lansing Employees Retirement System Quarterly Expense
Report for the third quarter ending September 2014.
The meeting adjourned at 9:18 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 December 18, 2014
City Council Conference Room Thursday, 8:30 a.m.? %?
10th Floor, City Hall Y,, ` rn
Lansing, MI c�
The Board met in regular session and was called to order at 8:30 a.m. C: '
Present: Dedic, Kraus, McCaffery, Munroe, Dennis Parker, Mark Parker — 6 70
Absent: Trustee Bernero, Boles, McIntyre
Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Dennis Parker and supported by Trustee Mark Parker to
approve the Official Minutes of the Employees' Retirement System Board Regular
Meeting of November 20, 2014.
Adopted by the following vote: 6 - 0
It was moved by Trustee Dennis Parkers and supported by Trustee Mark Parker to
approve the Official Minutes of the Joint Employees' Retirement System Board and the
Police and Fire Retirement System Board Meeting of November 20, 2014.
Adopted by the following vote: 6 — 0
There were no public comments.
Secretary=s Report. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2
retired. Total active membership: 296. Total deferred: 68. 3 death(s) Charles L. Dart
(911 Dispatch/Teamster, retired 3/27/2005), died 11/20/2014, age 63, spouse to receive
50%; Edith M. Fulkerson, died 11/26/2014, age 88, spouse of Nonbargaining retiree;
Betty Durling, (District Court Teamster, retired 8/7/1987), died 12/2/2014, age 84, no
beneficiary. Refunds made since the last regular meeting amounted to $529.60.
Retirement allowances paid for the month of November 2014, amounted to
$1,876,122.56. Total retirement checks printed for the ERS System: 912. Eligible
domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
Employees Retirement System
Regular Meeting of December 18, 2014
Page 2
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
requests for Regular Age and Service retirements:
Henry Forbush, (Public Service/Teamster), 29 years, 3 months of service
credits, age 53, effective December 13, 2014.
Adopted by the following vote: 6-0
There were no requests for duty disability retirements.
Ms. Williams reported that the Medical Director contacted the Retirement Office and
requested additional documents from Applicant #2014 — E0619. Ms. Williams contacted
the applicant with the Medical Director's request.
Attorney Ken Lane distributed the City of Lansing Employees' Retirement System
Board of Trustees projected budget for calendar year 2015. Attorney Ken Lane stated
that annual budget be created and posted as described within Public Act 314..
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
City of Lansing Employees' Retirement System Board of Trustees projected budget for
calendar year 2015.
Adopted by the following vote: 6 — 0
Attorney Ken Lane updated the Board that he contacted Tegrit regarding their request to
list the City of Lansing Retirement Board and its logo in its promotional materials.
Attorney Lane notified Tegrit that the Retirement Boards wished to wait to decide upon
the request once the project has been completed.
Attorney Lane will provide a hard copy and the electronic copy of the updated
investment policy.
Karen Williams updated the Employees'
concerns raised with the actuarial valuation
Actuary provided by a revised draft that
approval by the Secretary of the Board.
Retirement System Board regarding the
Karen Williams notified the Board that the
was reviewed and found acceptable for
It was moved by Trustee Kraus and supported by Trustee Mark Parker to accept the
Employees' Retirement System Actuarial valuation report for the period ending
December 31, 2014.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of December 18, 2014
Page 3
Attorney Ken Lane reported to that actuarial report should be approved by December
31, 2014 as described in the Employees' Retirement System Board. The Actuary report
once approved should be presented to City Council, the Mayor's Office and then posted
to the website. The Police and Fire Retirement Board received an email from the
Actuary requesting that data be provided to Boomershine Consulting Group by April 30,
2014. The Police and Fire Retirement Board directed legal counsel that the report
policy be amended to include the April 30, 2014 date for the Secretary to provide the
information to the actuary. Attorney Ken Lane opined that providing the data earlier
would allow a draft to be finalized and provide the Boards more time to review. Attorney
Lane asked for the Employees' Retirement System Board direction regarding its Report
policy.
Trustee Mark Parker inquired if the Secretary had any issues with the time frame.
Attorney Lane reported that Ms. Bennett suggested an alternate time frame as of June
30, 2014. Ms. Bennett explained that the Finance Department is short-staffed and has
spent a lot of time working on the Tegrit project.
Trustee Kraus suggested that the ERS Board provide similar timeframes within its report
policy to be consistent with the Police and Fire Retirement System Board, as an initial
starting point. Trustee Kraus suggested that legal counsel draft the amendment for
Board discussion and review.
It was moved by Trustee Kraus and supported by Trustee Howard McCaffery to have
legal counsel amend the report policy to request that Secretary of the Board provide the
actuarial data to the Actuary by the end of April.
Adopted by the following vote: 6 — 0.
Karen Williams reported that ERS Board received the Actuarial funding policy last
month. The legal counsel had questions regarding some of the language. Attorney Ken
Lane stated that he spoke with the actuary and the language was clarified. Attorney
Lane stated that his concerns were address and the policy complies with Public Act 314.
It was moved by Trustee Mark Parker and supported by Trustee Munroe to approve the
Employees' Retirement System Actuarial Funding Policy.
Adopted by the following vote: 6 — 0
Employees Retirement System
Regular Meeting of December 18, 2014
Page 4
Karen Williams distributed and reviewed the Equity Long/Short recommendations from
Asset Consulting Group. The three recommendations were:
1) Consider allocating 5-10% of the total portfolio to equity long/short and
implementing the allocation through a direct portfolio of hedge funds.
2) Modify the existing 10% target to real assets to include a 3% allocation to
commodities
3) Consider investment in the INVESCO Mortgage Recovery Fund II.
It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to
allocate 10% of the total portfolio to hedge funds.
Trustee Kraus clarified that the ERS Board did not approve an allocation through a
direct portfolio of hedge fund. The manager designation would be discussed and
designated at a later day.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Kraus and supported by Trustee McCaffery to modify the
existing 10% target to real assets to include a 3% allocation to commodities.
Adopted by the following vote: 6 — 0
It was moved by Trustee McCaffery and supported by Trustee Dennis Parker to approve
the investment to the INVESCO Mortgage Recovery Fund II.
Trustee Kraus inquired if the Invesco Mortgage Recovery Fund II was a new investment
with additional allocation, or if the money would be moved from the current Invesco
Mortgage Recovery Fund.
Trustee Kraus called Ms. Haley Rives, Asset Consulting Group for further clarification.
Ms. Rives, via phone, addressed the Employees' Retirement System Board and
explained that the money would be drawn from the current INVESCO Mortgage
Recovery Fund. The committed capital would be the same for the INVESCO Mortgage
Recovery Fund (IMRF) II. The current INVESCO Mortgage Recover Fund would
eventually close.
Adopted by the following vote: 6 — 0
Ms. Williams updated the Employees' Retirement System Board regarding Tegrit
Pension Software project. Ms. Williams reported that Tegrit has supplied a new time
line for the completion of the project for August 2015. Most of the delay was due to
issues with data migration from the payroll systems.
Trustee Mark Parker added that the new timelines are approximately six months behind
the old timelines. Trustee Parkers also reported that the Joint Boards spent
approximately $43,000 for data migration.
Karen Williams reviewed the City of Lansing Employees Retirement System Monthly Investment
Report and Securities Lending Report for the month ending November 2014.
The meeting adjourned at 9:07 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Scott Dedic, Chairperson
Employees' Retirement System