HomeMy WebLinkAbout2015 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting January 22, 2015
City Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MIS
The Board met in regular session and was called to order at 8:32 a.m. i
Present: Dedic, Kraus(8:33), McCaffery, McIntyre, Munroe, D. Parker, M. Pq�eqr-,lNood
—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 Dennis Parker and supported by Trustee McIntyre to approve
the Official Minutes of the Employees' Retirement System Board Regular Meeting of
December 18, 2014.
Adopted by the following vote: 6 - 0
There were no public comments.
Secretary=s Report. 3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2
retired. Total active membership: 298. Total deferred: 68. 4 death(s) Robert C.
VanNess (Plan ning/NonBargaining, retired 7/23/1988), died 10/13/2014, age 88, spouse
to receive 50%; Maurice Acker, died 11/20/2014, age 69, spouse of Teamster retiree;
Kathryn Hoffmaster, died 11/28/2014, age 92, spouse of NonBargaining retiree; Richard
F. Warner (Public Service/UAW, retired 6/12/1993), died 12/17/2014, age 83, no
beneficiary; George Taylor, (Civic Center/NonBargaining, retired 5/31/1986), died
1/5/2015, age 89, no surviving beneficiary. Refunds made since the last regular meeting
amounted to $529.60. Retirement allowances paid for the month of December 2014,
amounted to $1,875,557.17. 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.
Employees Retirement System
Regular Meeting of January 22, 2015
Page 2
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
requests for Regular Age and Service retirements:
Leroy Barber, (Public Service/UAW), 16 years, 7 months of service
credits, age 58, effective January 24, 2015.
Adopted by the following vote: 8-0
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.
There were no requests for Refunds of Accumulated Contributions.
Trustee Scott Dedic announced that MAPERS is sponsoring a One -Day Conference,
March 13, 2015. Members who wished to attend should contact the Retirement Office.
Attorney Ken Lane distributed to the Board the updated Employees Retirement System
Investment Policy. Attorney Lane stated that he will provide a copy of the actuarial
funding policy to the Board once the updated version has been received by
Boomershine Consulting Group.
Attorney Ken Lane updated the Employees' Retirement System Board regarding
drafting amendments to the Report Policy that would include target dates to streamline
the actuarial valuation process. Attorney Lane updated the Board that Ms. Bennett
contacted the Police and Fire Retirement System Board to inform trustees that she was
working with Boomershine to discuss and create a schedule for the actuarial process.
The Police and Fire Retirement delayed their discussion on the revised Report Policy
until the next meeting.
Trustee Kraus indicated that she would prefer that Ms. Bennett and the actuary work out
a timeline and present the schedule to Board.
Trustee Dedic moved the item to pending.
Attorney Lane updated the Employees Retirement System Board that the Invesco
Mortgage Recovery Investment, Part II contracts had been executed and forwarded to
Invesco for processing and the lower fee schedule.
Employees Retirement System
Regular Meeting of January 22, 2015
Page 3
Attorney Lane updated the Employees Retirement System Board regarding a former
member, Sherry Longoria, who transferred to Ingham County as a part of the 911
Dispatch Center agreement.. At the time of Ms. Longoria's transfer to Ingham County,
she had an Eligible Domestic Relation Order on file with the Retirement Office. Attorney
Lane sent a letter to Ms. Longoria and Mr. Longoria regarding the EDRO. Attorney
Lane reviewed a letter with ERS Board that detailed a required amendment to the
EDRO that would change the retirement system listed from City of Lansing Employees
Retirement System to the Municipal Employees Retirement System of Michigan.
Attorney Lane had not received a response from either party and requested direction
from the ERS Board. Attorney Lane suggested sending a second sterner letter of
request. Attorney Lane opined that the ERS System would not pay any monies in
response to the EDRO.
The ERS Board directed Attorney Lane to send a second letter as recommended.
Attorney Lane updated the Board regarding the elected employee position on the
Board. Attorney Lane indicated that since the City reorganized, the Central garage
division was moved from Finance to Public Service. Currently, there are two members
from Public Service on the ERS Board. Attorney Lane stated that the ERS Board
should review and modify its rules and policy to reflect the re -organization.
Trustee Dennis Parker recommended that the ERS Board wait until after the budget
discussion to see if there are further re -organizations of city divisions and departments.
Trustee Mark Parker indicated that the re -organization happened in 2012. Trustee Mark
Parker was initially elected as City Hall Trustee and re-elected prior to the transfer of the
Central Garage to Public Service. After the re -organization, two elected members were
of the same department.
Trustee Kraus indicated that she spoke with Karen Williams of the retirement office
regarding the next election. Trustee Kraus wanted the ERS Board to be proactive
before for the next election time, so that the retirement board can have appropriate
representation based upon how the City of Lansing departments are organized.
Trustee Wood requested that the minutes reflect that the Employees Retirement System
Board of Trustees understands that the Board is currently out of compliance with its
policy. Trustee Wood further requested that a footnote be added to the policy that the
ERS Board is working on rectifying the issue.
Trustee Wood inquired about the status of the Employees Retirement System
Ordinance.
Employees Retirement System
Regular Meeting of January 22, 2015
Page 4
Attorney Ken Lane reported that the Attorney Jack Roberts within the City Attorney's
office is working on revising and updating the ERS Ordinance.
Trustee McIntyre reported to the ERS Board that other priorities have delayed the
completion of the Ordinance by the City Attorney's Office. Trustee McIntyre wanted to
ensure that a thorough review of the Retirement Ordinance was done.
Trustee Scott Dedic announced that he would not seek re-election as Employees
Retirement System Board chairperson. Trustee Dedic opened nominations.
Trustee Mark Parker nominated Trustee Dennis Parker for ERS Board chairperson.
Trustee Antonia Kraus nominated Trustee Mark Parker for ERS Board chairperson.
It was moved by Trustee Kraus and supported by Trustee Munroe to close nominations.
Adopted by the following vote: 8 — 0.
Trustee Dennis Parker accepted the nomination for ERs Board chairperson
Trustee Mark Parker declined the nomination for ERS Board chairperson.
It was moved by Trustee Wood and supported by Trustee Munroe to elect Trustee
Dennis Parker as Employees Retirement System Board chairperson by acclamation.
Adopted by the following vote: 8 — 0.
Trustee Dedic opened the nominations for vice chairperson.
Trustee Munroe nominated Trustee Carol Wood for ERS Board vice chairperson.
Trustee Wood declined the nomination for ERS Board chairperson.
Trustee Wood nominated Trustee Mark Parker for ERS Board vice chairperson.
It was moved by Trustee Dennis Parker and supported by Trustee McIntyre to close
nominations.
Adopted by the following vote: 8 — 0
Trustee Mark Parker accepted the nomination for the ERS Board vice chairperson.
It was moved by Trustee Kraus and supported by Trustee Wood to elect Trustee Mark
ti.
Parker as Employees Retirement System Board vice chairperson by acclamation.
Adopted by the following vote: 8 — 0
Trustee Dedic referred the subcommittee assignments to the new chairperson.
Karen Williams reported that the Employees Retirement System Board had received
communication from Angela Bennett, the finance director regarding the pension
contribution. The communication indicated that on December 30, 2014, $247,556 was
transferred by the City to the Employees' Retirement system for the balance of the FY
2015 contribution. The total actuarial valuation -calculation contribution for FY 2015 was
$10,547,556.
It was moved by Trustee Wood and supported by Trustee Mark Parker to accept the
$247,556 that was transferred by the City to the Employees' Retirement System for the
balance of the FY 2015 contribution.
Adopted by the following vote: 6 — 0.
Trustee Dedic reported that Angela Bennett was not available for the meeting and
requested to review the GASB 67 report at the next meeting.
Trustee Mark Parker updated the Employees' Retirement System Board regarding
Tegrit Pension Software project. Trustee Parker reported that a key resource had left
Tegrit and the company and indicated one of their top developers would take over
beginning in February. Trustee Parker indicated that the timeline may need to be
adjusted and that the Retirement Office continues to work with Tegrit on phases 3,4 5
that include software for the retirement calculator , processes and workflow phases of
the project.
Karen Williams reviewed the City of Lansing Employees Retirement System Monthly Investment
Report for the month ending December 2014.
The meeting adjourned at 9:07 a.m.
Minutes approved on
Scott Dedic, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees Retirement System
-4-1
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
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 Comity will assume remaining
unRuided 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
t rti��
WHEREAS, at its meeting on December 19, 2013, the City of ;ansin _rE p .oye�sj.,&tirement
System ("ERS") authorized the transfer of credited service (easj refeenced in ApperrdiC A) and
the funds designated for each transferred employee (as referenced 1n, p4iaC. -4 l an 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
WIIEREAS, 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
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 revolves the condition enacted in
its prior resolution that required each transferred employee to execute a waiver as a condition to
the transfer of funds fi-om 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.
CERTIFICATION
As its Secretary, I certify that this is a true and
Board of Trustees of the Lansing Employees'
regular meeting held on January 23, 2014,
Date: 2014
complete copy of a resolution adopted by the
Retirement System, Lansing, Michigan, at a
APPENDIX A
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1
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 ---`I 9,15
Thursday"_8:30--a.rr
The Board met in regular session and was called to order at 8:30 a.m.
Present: Kraus, McCaffery, McIntyre (8:38), Munroe, D. Parker, M. Parker, Woocf.;= 7
Absent: Trustee Bernero, Dedic ="
Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the
Official Minutes of the Employees' Retirement System Board Regular Meeting of
February 19, 2015.
Adopted by the following vote: 6 - 0
It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official
Minutes of the Joint Police and Fire Retirement System and Employees' Retirement
System Board Meeting of February 17, 2015.
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, 1
retired. Total active membership: 298. Total deferred: 68. 2 death(s) William A. Swix
(Parks/Teamster, retired 10/1/1988), died 2/27/2015, age 78, spouse to receive 100%;
Diana Terry, (Finance/Teamster, retired 12/19/1992), died 3/1/2015, age 70, no surviving
beneficiary. Refunds made since the last regular meeting amounted to $4,643.72.
Retirement allowances paid for the month of February 2015, amounted to
$1,884,414.02. Total retirement checks printed for the ERS System: 906. Eligible
domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
Employees Retirement System
Regular Meeting of March 19, 2015
Page 2
It was moved by Trustee Kraus and supported by Trustee Wood to approve the requests
for Regular Age and Service retirements:
Catherine M. Brechtelsbauer, (Human Resources/Teamster), 5 years, 6 months of
service credits, age 58, effective April 1, 2015. (Eligible for Retirement with w/ 2years
and 6 months of reciprocal time through the Reciprocal Retirement Act with the State of
Michigan) — From Deferred
Michael C. Payne (Finance/Teamster), 25 years, 11 months of service credits, age 62,
effective April 1, 2015.
Darren E. Rogers (Public Service/UAW), 29 years, 4 months of service credits, age 50,
effective April 4, 2015.
Milton Alston (Parks/Teamster), 21 years, 7 months of service credits, age 62, effective
April 15, 2015.
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.
There were no requests for Refunds of Accumulated Contribution.
Karen Williams reported that Trustee Dedic had contacted the Retirement Office to
request an excused absence from the March Board meeting.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to excuse
Trustee Dedic from the March Retirement Board meeting.
Adopted by the following vote: 6 — 0.
Trustee Mark Parker provided an oral report of the One Day MAPERS Seminar.
Trustee Parker reviewed sessions that included health care, plans adding a defined
benefits, and a discussion regarding active versus passive investments.
Karen Williams announced the MAPERS Spring Conference that will be held in May
17-19, 2015. Members who wished to attend should contact the Retirement Office.
Karen Williams distributed the City of Lansing Travel and Business Expense Policy
update. The mileage reimbursement increased to 57.5 cents.
Employees Retirement System
Regular Meeting of March 19, 2015
Page 3
Attorney Ken Lane reported that the Employees Retirement System Board's Education
policy is written in such a way as to automatically adopt the City's Travel and Business
Expense policy.
Karen Williams reported that the Retirement Office has contacted Asset Consulting
Group regarding having a Trustee Training Session for new trustees. Ms. Williams also
reported that the Police and Fire Retirement Board had requested a list of managers for
possible due diligence meetings. Ms. Williams inquired to the ERS Board if they also
wishes to have due diligence meetings. The Retirement Office will contact ACG for
potential due diligence visits for the ERS Board.
Attorney Ken Lane reported that the City Attorney's office continues to work on revising
and updating the ERS Ordinance.
Attorney Ken Lane distributed to the Employees Retirement System Board the
amended Annual Report Policy. Attorney Lane reviewed the timelines for the actuarial
valuation: June 30, data submission to actuary; August 31, draft from actuary;
September 30, final draft. Attorney Lane reported that City's annual financial audit
recommended that the Finance Department submit data to the actuary in a more timely
fashion. Attorney Lane stated that the amended policy would address the issue.
Attorney Lane reported that at the request of the Joint Boards, he contacted TRowe
Price who notified the Boards that it was transferring its recordkeeping duties to BYN
Mellon. Attorney Lane reported that he received the Invesco documents for Mortgage
Recovery Fund II Investment.
Attorney Lane updated the Employees Retirement System Board regarding the Eligible
Domestic Relations Order (EDRO) for a former member, Sherry Longoria, who
transferred to Ingham County as a part of the 911 Dispatch Center agreement.
Attorney Lane reached out to the Municipal Employees Retirement System (MERS).
The MERS representative stated that she would contact Ms. Longoria regarding
amending the EDRO.
Trustee Wood reported that the City Attorney's office presented a resolution to the
Committee of the Whole meeting to add a new law firm to Outside Legal Counsel list.
During the meeting, members were informed that the requested addition was being
added to the pension board. Trustee Wood expressed concern that the Retirement
Board had procedures for contracting with its outside legal counsel. The Retirement
Board did not get an opportunity to interview or discuss the firm.
Trustee McIntyre reported that the firm Labaton Sucharow made a formal request to be
added to the outside legal counsel list. Trustee McIntyre explained the outside legal
counsel list and the process for additions to the list.
Employees Retirement System
Regular Meeting of March 19, 2015
Page 4
Trustee McIntyre reported that Labaton Sucharow offered a variety of services and
indicated that there was no intention to select a firm for either board and added that
there was no contract in place.
Trustee Kraus expressed her concern that any outside counsel would need to be vetted
and selected by the retirement board.
Trustee McIntyre reviewed the discussion she had with the Police and Fire Retirement
System. Trustee McIntyre indicated that a previous city attorney had a relationship with
a firm that was added to the list. Trustee McIntyre indicated that neither she nor any
member of her staff has a relationship with Labaton Sucharow.
Trustee Dennis Parker inquired to legal counsel if the Retirement Board would be
required to work with the firm.
Attorney Ken Lane indicated the Employees Retirement Board had a policy in place
regarding its work with outside legal counsel. The ERS Board would not be required to
contract with the firm.
Trustee Wood reported that the Police and Fire Retirement Board was sending a letter
to the City Council to state its position regarding the Board's use of outside legal
counsel. Trustee Wood recommended that the Employees Retirement System sign on
to the letter to Council.
It was moved by Trustee Wood and supported by Mark Parker to provide a Joint
Retirement Board letter to City Council to state its position regarding the Board's use of
outside legal counsel.
Adopted by the following vote: 7 — 0.
Karen Williams distributed Asset Consulting Group's discussion of Equity/Long Short
recommendations for the Employees Retirement System. The ERS Board requested
information on direct hedge fund managers versus fund of fund managers. Ms. Haley
Rives indicated that the direct hedge fund would require additional subscriptions.
Trustee Kraus recommended the fund of fund approach. Trustee Kraus expressed
concerned over the additional time commitments to manage direct hedge fund
investments.
Trustee Mark Parker indicated that he was in favor of a bundled direct investment
managed through Asset Consulting Group. Trustee Parker believed that the bundled
approach would have lower fees, be more transparent and better returns.
Employees Retirement System
Regular Meeting of March 19, 2015
Page 5
Trustee Kraus expressed concern about the relationship with Asset Consulting Group if
hired as an investment manager.
Trustee Wood suggested that the Board have a more in depth discussion with Asset
Consulting Group regarding the Equity Long/Short investment recommendations.
It was moved by Trustee Mark Parker and supported by Trustee Munroe to table the
Equity Long/Short discussion.
Adopted by the following vote: 7 — 0.
Trustee Wood recommended that the May Joint meeting be held first and followed by
the ERS meeting, so that members could discuss the Equity Long/Short investment with
Asset Consulting Group.
It was moved by Trustee Wood and supported by Trustee Kraus to hold the May Joint
meeting be held first, followed by the Employees Retirement System meeting,
Adopted by the following vote: 7 — 0.
Karen Williams updated the Employees' Retirement System Board regarding Tegrit
Pension Software project. Karen Williams reviewed the timeline for the completion of
the project, scheduled for August 2015. Karen Williams requested that Tegrit attend the
April Board meeting to demonstrate the web site estimator. Trustees will be able to
perform user testing and provide feedback.
Trustee Wood discussed two audit repeat comments that were detailed in the City's
Annual Financial Report regarding the Retirement System. Trustee Wood indicated
that the Board's amended Annual Report Policy and the Tegrit software should address
the comments. Trustee Wood indicated that the Police and Fire Retirement Board
approved a letter to be drafted to the Mayor and City Council detailing the actions that
the Retirement Boards had taken to address the audit comments.
It was moved by Trustee Wood and supported by Trustee McIntyre to provide a Joint
Retirement Board letter to the Mayor and City Council detailing the actions the Boards
have taken to address the audit repeat comments in the Comprehensive Annual
Financial Report.
Adopted by the following vote: 7 — 0.
Trustee Wood reported that the City Clerk's Office provides a listing of expired terms
and appointments for Boards and commission. Trustee Wood indicated that the list did
not have updated information and needed to be clarified. The list showed that Trustee
Carol Munroe term had expired.
Trustee Munroe was re-elected, June 2014 to a four-year term. Trustee Wood
requested that the Retirement Office contact the City Clerk's Office with clarification.
Trustee Mark Parker requested that the Employees Retirement System Board extend
the contract for Dawn Polihonki through the end of the year to assist with the completion
of the Tegrit software project.
Attorney Ken Lane reported that Ms. Polihonki had not used up the funds that had been
allocated for the project. The extension would be at her current rate of $90/hour, not to
exceed $15,000.
It was moved by Trustee Mark Parker and supported by Trustee Wood to extend Dawn
Polihonki's contract through the end of 2015.
Adopted by the following vote: 7 — 0.
Ms. Williams presented the Monthly Investment Report and Securities Lending Report
for the month of February 2015.
It was moved by Trustee Wood and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board meeting.
The meeting adjourned at 9:29 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting April 23, 2015
City Council Conference Room Thursday, 8-.,30 ain.
10th Floor, City Hall Ga
Lansing, MI U71 �(-�-
'-N p
The Board met in regular session and was called to order at 8:32 a.m.
J ID
Present: Dedic, McCaffery, Munroe, D. Parker, M. Parker, Wood — 6
Absent: Trustee Bernero, Kraus, McIntyre r ••
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth
Lane, Clark Hill (representing the City Attorney's Office).
It was moved by Trustee. McCaffery and supported by Trustee Dedic to approve the
Official Minutes of the Employees' Retirement System Board Regular Meeting of March
19, 2015.
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,0
retired. Total active membership: 299. Total deferred: 67. 0 death(s). Refunds made
since the last regular meeting amounted to $0.00. Retirement allowances paid for the
month of March 2015, amounted to $1,876,621.05. Total retirement checks printed for
the ERS System: 905. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Wood and supported by Trustee Munroe to approve the
following requests for Regular Age & Service Retirement:
David A. Miller (Public Service/UAW), 16 years, 3 months of service credits, age 52,
effective March 1, 2015 (NonDuty Death)
Gregory Vansteel (Transportation/UAW), 13 years, 2 months of service credits, age 58,
effective May 8, 2015.
Sean C. Pierce (Public Service/UAW), 25 years, 2 months of service credits, age 53,
effective May 23, 2015.
Employees Retirement System
Regular Meeting of April 23, 2015
Page 2
It was moved by Trustee Wood and supported by Trustee Munroe to approve the
following requests for Regular Age & Service Retirement (continued):
Ms. Williams explained the Employees Retirement System Ordinance provision for
NonDuty Death.
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.
Trustee Wood inquired if the disability policy provided for a time limit in which a request
can be kept on the agenda.
Attorney Ken Lane that the disability policy did not address time limits for a request on
the agenda. Attorney Lane noted that the Police and Fire Retirement Board had a
similar situation. Attorney Lane recommended that the request be kept on the agenda
until the next meeting. He indicated that at that time, the ERS Board could revise its
policy or send a letter to the member requesting that he re -apply.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the requests
for Refund of Accumulated Contributions:
*Craig T. Hubert, Teamster 580, $241.84 (not vested)
*Jack W. Jackson, UAW -Deferred, $8,350.69 (deceased, beneficiary to receive
accumulated contributions)
*Melissa L. Klingbeil, Teamster 214, $2863.34 (not vested)
Karen Williams explained the Employees Retirement System Ordinance provision to
allow refunds of accumulated contributions to the beneficiary of a deceased member.
Adopted by the following vote: 6 — 0.
Karen Williams reported that Trustee Kraus and Trustee McIntyre indicated that they would not
be able to attend the April Meeting.
The Employees Retirement System Board noted that Trustee Kraus and Trustee McIntyre are
ex -officio members that do not need to be excused.
Employees Retirement System
Regular Meeting of April 23, 2015
Page 3
Trustee Dennis Parker requested Board permission to attend the NCPERS Annual
Conference.
It was moved by Trustee Dedic and supported by Trustee Wood to allow Trustee Dennis
Parker to attend the NCPERS Conference, May 2 through May 7, 2015.
Adopted by the following vote: 6 — 0
Karen Williams reminded members that MAPERS Spring Conference that will be held in
May 17-19, 2015. Members who wished to attend should contact the Retirement Office
to register.
Karen Williams provided recommendations from Asset Consulting Group (ACG)
regarding due diligence visits. ACG provided the following options: Chicago to see
custodial bank Northern Trust and investment manager, William Blair; Los Angeles and
Salt Lake City to see investment managers, Western Asset, Franklin Templeton and
Wasatch. Ms. Williams also noted that Wasatch is hosting a client/consultant
conference September 28-29. The ERS Board will discuss the options further at the
Joint meeting with the Police and Fire Retirement Board. Trustee Training with Asset
Consulting Group will be scheduled.
Attorney Ken Lane reported that Northern Trust sent documents to the Employees
Retirement System Board and the Police and Fire Retirement System Board indicating
that both systems were entitled to refunds from a class action lawsuit. Attorney Lane
explained that the law suit is related to the indirect security lending system. The City of
Lansing Retirement Boards participates in direct securities lending.
Attorney Lane reviewed how securities lending operates. Attorney Lane explained that
the lawsuit did not allege anything illegal, but sated that Northern Trust could have
made more money with better investment choices. Attorney Lane indicated that the
lawsuit does not relate to their duties as custodial bank.
Attorney Lane did not have a Retirement Ordinance update. Attorney Lane distributed
the annual report policy and a draft requested by the Board detailing how the ERS
Board has addressed the financial audit comments. Attorney Lane informed the ERS
Trustees that the Police and Fire Board approved the letter with corrections.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
draft provided by Attorney Ken Lane detailing how the ERS Board had addressed the
financial audit comments with its amended annual report policy.
Employees Retirement System
Regular Meeting of April 23, 2015
Page 4
Ms. Angela Bennett reviewed the letter and suggested a stronger statement to include
the annual report policy was amended in conjunction with the Board, Finance Director
and the Actuary. Ms. Bennett also noted that last year, staff had to address an urgent
request from Tegrit to provide information so the software process could continue. The
request delayed the information to the actuary.
Recently, Tegrit has experiences some staff turnover that might affect data migration.
The Finance staff has expressed concern that these changes may require their
resources to complete the Tegrit project.
Trustee Wood stated that the letter drafted was to address the repeat comments that
were a part of the audit. The letter would demonstrate that the ERS Board took the
comments seriously.
Ms. Bennett noted that the Finance Department does respond to the audit comments
with an explanation of delays in the actuary data. Ms. Bennett mentioned that change
in actuarial firms and the health care OPEB valuation.
Trustee Dennis Parker inquired if we can amend the policy if needed. Attorney Ken
Lane responded that the ERS Board to amend its policies to allow for updates or
delays,
Trustee Dedic stated that the Finance Department can alert the Board when there would
be delays and that information can be acknowledged in the minutes.
Adopted by the following vote: 6 — 0.
Angela Bennett reviewed the Employees Retirement System projections analysis of the
effect of recent collective bargaining agreements on future City contributions. Ms.
Bennett had a study completed by Boomershine Consulting Group to determine and
isolate the impact of these agreement changes. The study was paid for by the City.
The study did not include the actions of the Retirement Board regarding changes to the
interest rate and amortization.
Trustee Dedic asked Ms. Bennett provide a written correspondence detailing what was
requested from Boomershine Consulting Group for the study.
Trustee Wood informed the Employees Retirement Board that as part of the budget
process, the Financial Health Team has been requested to provide a recommendation
for pension and health care. Trustee Wood indicated that the Financial Health Team
has not met with the Retirement Boards. Trustee Wood recommended that the
Retirement Boards instead an invitation to the Financial Health Team to review the
amendments put in place to improve the health of the retirement systems.
Employees Retirement System
Regular Meeting of April 23, 2015
Page 5
Ms. Bennett indicated that she had provided information to the Financial Health Team
regarding Retirement Board actions to change the assumed rate or return and to close
the amortization period.
Trustee Dedic explained that the Boards have not been notified of the requests given to
the Financial Health Team.
Trustee Wood suggested that the she could provide a communication from City Council
informing the Retirement Boards that the Financial Health Team has been requested to
provide a recommendation for pension and health care.
Karen Williams reported that a former employee sent a letter to the Retirement Office
requesting a return of accumulated contributions. The former employee was employed
from 2004 through 2006 and did not take her contributions at the time that she left. The
Retirement Office informed the former employee that the Retirement Ordinance sets a
time limit in which a member can receive their contributions upon separation from the
City.
The Retirement Board reviewed the former employee's letter and requested legal
review.
Attorney Ken Lane states that the Retirement Ordinance provides for five years in which
a former member can request contributions if they are not eligible for retirement.
Attorney Lane recommended legal counsel sending a letter of response to the request.
It was moved by Trustee Wood and supported by Trustee Dedic to have legal counsel
provide a written response to the former employee's letter of request of accumulated
contributions.
Adopted by the following vote: 6 — 0.
Karen Williams updated the Employees' Retirement System Board regarding Tegrit
Pension Software project. Karen Williams explained that Tegrit requested to
reschedule its web site estimator demonstration to the May Board meeting. Tegrit
needed additional time to complete the system. Retirement Office user testing was
scheduled to begin in May.
The Equity Long/Short discussion remained tabled until the May Employees Retirement
System meeting.
Ms. Williams reminded the Employees Retirement System Board that the May Joint
meeting be held first and followed by the ERS meeting, so that members could discuss
the Equity Long/Short investment with Asset Consulting Group.
Ms. Williams presented the Monthly Investment Report and Securities Lending Report
for the month of March 2015.
It was moved by Trustee Wood and supported by Trustee Munroe to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:23 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, 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
May 14, 2015
Thursday, 10:6 a.r .
The Board met in regular session and was called to order at 10:18 a.m
Present: Kraus, McCaffery, D. Parker, M. Parker, Wood — 5
Absent: Trustee Bernero, Dedic, McIntyre, Munroe
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Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill
(representing the City Attorney's Office); George Tarlas, Asset Consulting Group.
It was moved by Trustee McCaffery and supported by Trustee Mark Parker to approve
the Official Minutes of the Employees' Retirement System Board Regular Meeting of
April 23, 2015.
Adopted by the following vote: 5 - 0
There were no public comments.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 5
retired. Total active membership: 296. Total deferred: 67. 1 death(s), Myrtis L. Smith,
(Human Resources/Teamster, retired 10/20/1990), died April 19, 2015, no surviving
beneficiary. Refunds made since the last regular meeting amounted to $0.00.
Retirement allowances paid for the month of April 2015, amounted to $1,901,782.92.
Total retirement checks printed for the ERS System: 913. Eligible domestic relations
orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations
orders certified: 0.
It was moved by Trustee Wood and supported by Trustee Kraus to approve the
following requests for Regular Age & Service Retirement:
Teresa Frassetto (Transportation/Teamster), 22 years, 8 months of service credits, age
60, effective June 1, 2015.
Antonia Kraus (Finance/Exec. Mngt), 25 years, 10 months of service credits, age 51,
effective June 6, 2015.
Employees Retirement System
Regular Meeting of May 14, 2015
Page 2
It was moved by Trustee Wood and supported by Trustee Kraus to approve the
following requests for Regular Age & Service Retirement (cont.):
Mark Stanley (Public Service/UAW), 20 years, 4 months of service credits, age 58,
effective June 13, 2015
Adopted by the following vote: 5 - 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. The applicant has been
unable to provide the requested data.
Attorney Ken Lane recommended that the Retirement Office send a letter notifying the
applicant that if there is no response to the request for additional material by 60 days,
the application would be considered withdrawn.
There were no requests for refunds of accumulated contributions
Karen Williams reported that Trustee Munroe indicated that she would not be able to attend the
May Meeting due to illness. Trustee Dedic also requested to be excused from the May Meeting
The Employees Retirement System Board noted that Trustee McIntyre is an ex -officio member
that does not need to be excused.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to excuse Trustee
Munroe from the Employees Retirement System Board May meeting.
Adopted by the following vote: 5 - 0
It was moved by Trustee Wood and supported by Trustee Mark Parker to excuse Scott Dedic
from the Employees Retirement System Board May meeting.
Adopted by the following vote: 5 -0
Trustee Dennis Parker provided an oral report for his attendance at the NCPERS Annual
Conference. Trustee Parker detailed the New London firefighters that went to the defined
contribution in 1996. After some financial difficulties and other problems encountered by
firefighters within the defined contribution plan, the union has recently bought in to the State of
Connecticut pension system. Other issues that include a code of conduct for service providers,
public pension systems, actuarial data. Trustee Parkers stated that Trustee McIntyre would
provide a report at the next meeting.
Employees Retirement System
Regular Meeting of May 14, 2015
Page 3
Karen Williams reminded members that MAPERS Spring Conference that will be held in
May 17-19, 2015. Members who wished to attend should contact the Retirement Office
to register.
Attorney Lane did not have a Retirement Ordinance update.
Trustee Wood requested that the City Attorney and Attorney Roberts be available at the
next meeting to provide a status on the Ordinance delay.
Attorney Ken Lane discussed a letter from a former employee that requested a refund of
accumulated contribution after the five year period. The Board directed legal counsel
to send the former employee a letter regarding the denial of the request. Legal counsel
has not received a response.
Attorney Lane also discussed an amended election policy that takes into account the
re -organization of City Departments. Attorney Lane can provide a draft at the next
meeting.
Karen Williams reported to the Employees Retirement System that the authorized
signers need to be updated with the retirement of the City Treasurer.
It was moved by Trustee Mark Parker and supported by Trustee McCaffery to have
Trustee Carol Wood as an authorized signer for the City of Lansing Employees
Retirement System investment on a temporary basis to replace Antonia Kraus.
Adopted by the following vote: 5 - 0
Mr. George Tarlas provided an overview of Equity/Long Short Discussion. Mr. Tarlas
explained that the City of Lansing Employees' Retirement System (ERS) Board
modified its strategic allocation in December to include a 10% target to equity
long/short.
Mr. Tarlas discussed the pros and cons between two recommended fund of funds
candidate manager, Private Advisor and ABS and the direct hedge investment program.
Mr. Tarlas reviewed the implementation option.
Trustee Mark Parker requested that ERS Board consider a direct investment
customized portfolio with Asset Consulting Group as the investment manager. Trustee
Mark Parker discussed the lower fees, performance and transparency.
Employees Retirement System
Regular Meeting of May 14, 2015
Page 4
Trustee Kraus expressed concern that a termination of ACG as its direct hedge
investment manager may affect the relationship with ACG. Trustee Kraus expressed
that she would not support the direct investment with ACG as our manager and
consultant.
Attorney Lane noted that the Police and Fire Retirement Board has a current contract in
place with Private Advisors.
It was moved by Trustee Kraus and supported by Trustee McCaffery to select Private
Advisors as its Equity Long/Short Investment manager.
Adopted by the following vote: 5 - 0
Ms. Williams presented the Quarterly Expenses Report and Securities Lending Report
for the month of April 2015.
It was moved by Trustee Wood and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 5 — 0.
The meeting adjourned at 9:23 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM -Updated
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
June 18, 2015
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:38 a.m.
Present: Dedic (8:42), McCaffery, Munroe, D. Parker, M. Parker, Wood — 6 ;.
Absent: Trustee Bernero„ McIntyre,
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney,,.Xenrtethf
Lane, Clark Hill (representing the City Attorney's Office).
It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the'��i
Official Minutes of the Employees' Retirement System Board Regular Meeting; of -May'` "
14, 2015.
Adopted by the following vote: 5 - 0
It was moved by Trustee Wood and supported by Trustee Parker to approve the Official
Minutes of the Joint Employees' Retirement System Board and the Police and Fire
Retirement System Board Regular Meeting of May 14, 2105.
Adopted by the following vote: 5 - 0
There were no public comments.
Trustee Mark Parker introduced Laurel McDevitt, Dewpoint project manager who
replaced Dawn Polihonki who retired. Ms. McDevitt discussed her experience as a
senior manager, and her work with other software implementation and her previous
work with municipalities and government agencies.
Trustee Dedic arrived to the meeting.
Employees Retirement System
Regular Meeting of June 18, 2015
Page 2
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2
retired. Total active membership: 315. Total deferred: 68. 1 death(s), Jerome R.
Droste, (Public Service/UAW, retired 8/2/1977), died 6/2/2015, no beneficiary. Refunds
made since the last regular meeting amounted to $0.00. Retirement allowances paid for
the month of June 2015, amounted to $1,956,962.17. Total retirement checks printed for
the ERS System: 911. Eligible domestic relations orders received: 0. Domestic relations
orders pending: 0. Eligible domestic relations orders certified: 0.
Trustee McCaffery noted that Mr. Droste was married and inquired if the beneficiary
nomination could be amended.
Karen Williams explained that at the time of Mr. Droste's retirement, he selected a
straight life benefit and did not name a beneficiary for his pension benefits. The
pension selection and beneficiary nomination are irrevocable after retirement.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the
following requests for Regular Age & Service Retirement:
Leslie M. Cooper (Public Service/Teamster), 11 years, 7 months of service credits, age
57, effective April 25, 2015. (Non Duty Death)
Karen Williams explained the provision of non -duty death and informed the Board that
the spouse was named as the Option A beneficiary.
Adopted by the following vote: 6 — 0
It was moved by Trustee Dedic and supported by Trustee Munroe to approve the
following requests for Regular Age & Service Retirement:
Michael A. Louth (Parks/UAW), 16 years, 5 months of service credits, age 58, effective
June 1, 2015. (From Deferred)
Adopted by the following vote: 6 - 0
There were no requests for duty disability retirements.
Ms. Williams reported that a letter was sent to Applicant #2014 — E0619 requested
additional material per thee applicant with the Medical Director's request. The applicant
has been unable to provide the requested data.
Attorney Ken Lane opined that if there is no response to the request for additional
material, the application would be considered withdrawn.
Employees Retirement System
Regular Meeting of June 18, 2015
Page 3
There were no requests for refunds of accumulated contributions
The Employees Retirement System Board noted that Trustee McIntyre is an ex -officio member
that does not need to be excused.
Trustee Mark Parker provided an oral report for his attendance at the MAPERS Spring Annual
Conference. Trustee Parker detailed the workshop he attended. He discussed problems of
different municipalities such as the city of Detroit. Trustee Parker also discussed other
workshops that reviewed correlated assets, equity/bonds and asset allocation.
Attorney Ken Lane provided a review of the legislative breakfast held at MAPERS. He
discussed Senate Bill 102 that focused on state teachers. Attorney Lane also
discussed employees that retiree and come back as a contract employee. Issues arise
if a person gets a pension, but continues to work the exact same job and hours. During
one of the workshops, the moderator stated this situation can be problematic and violate
the IRS code if specific contracts are not in place. Attorney Lane recommended that
Employees Retirement System Board perform a due diligence review of the city contract
provisions.
Trustee Dedic reported regarding the workshop dealing with issues from the Michigan
prospective at the MAPERS Conference.
Trustee Dennis Parker added his report and discussed the Workshop "Kentucky Fried
Pension that discussed funding issues with different municipalities.
Trustee Wood recommended having a Joint Committee of the Whole meeting with both
Retirement Board to learn about the pension plans and the work that the Boards are
doing on behalf of the retirement systems.
Trustee Dedic suggested legal counsel research HB4052 and inquired about the City's
position on the bill. Trustee Dedic stated that the bill could strip local and affect the
City.
Trustee Wood reported that City Council has plans to take a position opposing HB 4052
and Trustee Wood have plans to send letters to every senator expressing the position
on HB 4052.
The Employees Retirement System discussed the implications of SB 28 and that it may
affect union employees being allowed during work day to attend trustee meetings.
Trustee Wood stated that she believed members should receive release time.
Employees Retirement System
Regular Meeting of June 18, 2015
Page 4
Ken Lane will look at the impact of the bills and provide an update on the legislative
issues.
Karen Williams reported that the Employees Retirement Board discussed due diligence
visits in the fall. Ms. Williams indicated once a decision had been made, the visits
would need to. be arranged in coordinate with Asset Consulting Group (ACG). ACG
recommended due diligence visits to Northern Trust and William Blair.
Attorney Lane did not have a Retirement Ordinance update.
Attorney Lane distributed a copy of the revised Investment Policy. Attorney Lane also
discussed the Northern Trust settlement. The settlement administrator will determine
the amount that will be received by the Employees Retirement System Board.
Attorney Lane explained that the settlement is not based upon any fraud. The lawsuit
claims that Northern Trust could have made better investment choices within in its direct
securities lending program.
Attorney Lane also discussed an amended election policy that takes into account the
re -organization of City Departments. The current election policy has three employee
elected positions from the following departments: Public Service; Parks, Planning and
Neighborhood Development; and City Hall. The Employees Retirement System Board
temporarily suspended the rules to allow two members of Public Service to serve on the
Board. The Public Service Department has twice as many employees as other
departments.
Trustee Wood recommended a review of the Ordinance to review the language that
designates elected members.
Attorney Lane discussed that the Policy would govern grey areas not addressed in the
Retirement Ordinance.
Trustee Munroe expressed concern about having balance on the Board, when
re -organization changes membership in departments.
Trustee Dedic suggested have three at -large employee trustees with a City Wide vote
Attorney Ken Lane reported that the Private Advisors contract had been reviewed and
was ready for signatures and a July 1, 2015 funding.
Ken Lane reported that the Police and Fire Retirement Board had voted to extend the
deadline for the actuarial data exchange between the Finance Department and
Boomershine Consulting Group.
Employees Retirement System
Regular Meeting of June 18, 2015
Page 5
Ms. Angela Bennett requested additional time to provide the financial data to the
actuary. She reported that the demographic information had been sent, but the
financial data had been delayed due to priorities with the Tegrit software implementation
and staff shortage.
It was moved by Trustee Wood and supported by Trustee Dedic to extend the Annual
Report Policy deadline to transfer data from Finance Department to Boomershine
Consulting Group.
Adopted by the following vote: 6 — 0.
Ms. Bennett noted that a main concern of Plan funding is how to address the issues of
the City's continue ability to plan future contributions in the budget.
Ms. Williams presented the Quarterly Expenses Report and Securities Lending Report
for the month of May 2015.
Trustee McCaffery announced his retirement from the Employees' Retirement System
Board.
The Employees Retirement Board thanked Trustee McCaffery for his dedicated years of
service.
It was moved by Trustee Wood and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:43 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting July 23,, 2015
City Council Conference Room Thursday, 8:30 a.t
10th Floor, City Hall, f,
Lansing, MI ''
The Board met in regular session and was called to order at 8:36 a.m.
Present: Dedic, Good, Munroe, D. Parker, M. Parker, Wood — 6 s?""5--
Absent: Trustee Bernero , McCaffery, McIntyre =-
Others: Angela Bennett, Karen E. Williams, Finance Department.
It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the
Official Minutes of the Employees' Retirement System Board Regular Meeting of June
14, 2015.
Adopted by the following vote: 5 - 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: 316. Total deferred: 69. 1 death(s), Tsuyako DesRochers, died
7/7/2015, age 86, beneficiary of Teamster retiree. Refunds made since the last regular meeting
amounted to $0.00. Retirement allowances paid for the month of June 2015, amounted to
$1,903,877.64. Total retirement checks printed for the ERS System: 916. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations
orders certified: 0.
Trustee Wood requested that the total retirement checks printed for both systems be included in
the secretary's report.
It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the
following requests for Regular Age & Service Retirement:
Cindy Fontus (District Court/Teamster), 11 years, 6 months of service credits, age 58,
effective July 1, 2015. (From Deferred)
Adopted by the following vote: 6 — 0
Employees Retirement System
Regular Meeting of July 23, 2015
Page 2
There were no requests for duty disability retirements.
There were no requests for non -duty disability retirements.
Karen Williams reported that Troy J. Stowell, Parks, Teamster, not vested had requested
his accumulated contributions of $19,852.01.
It was moved by Trustee Wood and supported by Trustee Munroe to approve the
following request for refund of accumulated contributions:
Troy J. Stowell, Parks, Teamster, not vested $19,852.01
Adopted by the following vote: 6 — 0.
Trustee Wood recommended that the Employees' Retirement System excuse Trustee
McCaffery from the July meeting. Trustee Wood indicated that the City Council had not
received information from the Mayor's Office regarding the McCaffery's resignation from
the ERS Board. Trustee Wood stated that the City Charter provides 60 days for the
Mayor to report the information to Council.
It was moved by Trustee Good and supported by Trustee Dedic to excuse Trustee
McCaffery from the July Meeting of the Employees Retirement System Board.
Adopted by the following vote: 6 - 0
The Employees Retirement System Board noted that Attorney Ken Lane requested that
he be excused from the July Meeting due to other work obligations.
The Employees Retirement System Board noted that Trustee McIntyre is an ex -officio member
that does not need to be excused.
Karen Williams distributed conference information for the upcoming MAPERS Fall
Conference and the NCPERS Public Safety Conference
Karen Williams reported that the Police and Fire Retirement Board voted to go have due
diligence visits to Northern Trust and William Blair in early November Ms. Williams
indicated once a decision had been made, the visits would need to be arranged in
coordination with Asset Consulting Group (ACG).
Karen Williams reported that Trustee McIntyre informed her that the work on the
Retirement Ordinance has been placed on hold due to outstanding issues with some of
the union agreement.
Employees Retirement System
Regular Meeting of July 23, 2015
Page 3
Karen Williams provided a legal counsel update of pending items. Ms. Williams
discussed Attorney Lane's revision to the election policy that would prohibit no more
than one such elected member from the same division in any one city department.
The ERS Board discussed the recommendation to the election policy provided by the legal
counsel.
Trustee Dedic expressed concern on some of the language. He preferred at -large membership
and a City Wide election for the elected members.
Trustee Munroe expressed concern about having balance on the Board, when
re -organization changes membership in departments. Trustee Munroe recommended
having at least one elected member designated as City -Wide.
Trustee Wood recommended that legal counsel work with the City Attorney's Office to provide
an amendment to the Retirement Ordinance that had generic language allowing the ERS Board
to modify the rules by policy. The Board requested that the election policy amendment be
provided to City Council as soon as possible prior to the August Employees Retirement System
Board meeting to bring the Board into compliance with the Ordinance.
Ms. Williams indicated that there was no movement of Senate Bill 280 since June.
Karen Williams distributed a recommendation from Asset Consulting Group to approve the
amendment to the Invesco Mortgage Recovery Fund II. Ms. Williams reported that Attorney
Ken Lane reviewed the amendment and provided a report that stated his consistent with the
review by Asset Consulting Group. Attorney Lane did not have any concern with the
amendment requested by Invesco.
It was moved by Trustee Dedic and supported by Trustee Good to approve the Invesco
Mortgage Recovery Fund II amendment.
Adopted by the following vote: 6 — 0
Karen Williams provided a consent form to be signed by the chair of the ERS Board and
submitted to Invesco.
Karen Williams informed the Employees Retirement System that the Retirement Office
had received requests from organizations who wished to be linked to the web site. The
Board decided to not allow links from outside nongovernmental agencies or
organizations that were not vendors of the Retirement System due to security concerns.
Employees Retirement System
Regular Meeting of July 23, 2015
Page 4
Trustee Mark Parker provided an update of the Tegrit software project. Trustee Parker
reported that Tegrit and the City are working on security issues and have scheduled a
go live for August.
Karen Williams reported that the Retirement Office is performing user acceptance
testing on calculator, report, and actuarial processes. The Retirement Office will
continue to work with Tegrit past the go live date to fine tune and continue the manual
data migration. Ms. Williams also recommended that the Special Projects
subcommittee meet to determine placement of the website estimator on the Retirement
site.
Trustee Dennis Parker requested a status update on the actuarial data.
Ms. Bennett indicated that the financial data had been submitted to the actuary. Ms.
Bennett reported that the demographic material had been submitted earlier and
Boomershine would be reviewing the material and contacting the Finance department
with the questions to complete the valuation.
Trustee Dedic reported that he would not be able to attend the August 20, 2015.
Ms. Williams presented Securities Lending Report for the month of June 2015.
It was moved by Trustee Wood and supported by Trustee Dedic to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:20 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, 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
August 27, 2015
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:33 a.m.;
Present: Dedic, Good, McIntyre (8:36), Munroe, D. Parker, M. Parker, Wood —
Absent: Trustee Bernero, McCaffery
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark; Hipl�
(representing the City Attorney's Office), Attorney Paul Novak, Milberg.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
Official Minutes of the Employees' Retirement System Board Regular Meeting of July
21, 2015.
Adopted by the following vote: 6 - 0
There were no public comments.
Secretary's Report. 11 new member(s), 0 reinstatement(s), 0 refund(s), 2 transfers, 2
retired. Total active membership: 325. Total deferred: 70. 1 death(s), Cy Clark (UAW,
retired 1/5/1999), died 8/15/2015, age 84, spouse to receive 100%. Refunds made
since the last regular meeting amounted to $19,852.01. Retirement allowances paid for
the month of July 2015, amounted to $1,902,130.90. Total retirement checks printed for
the ERS System: 916. Total Retirement checks printed for both systems: 1627. Eligible
domestic relations orders received: 0.. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
There were no requests for regular age & service retirements.
There were no requests for duty disability retirements.
Karen Williams reported that the Employees Retirement System received a request for non -duty
disability retirement, Applicant #2015-E0827.
The Non -Duty Disability retirement request for applicant #2015-E0827 was referred to the
disability subcommittee.
Employees Retirement System
Regular Meeting of August 27, 2015
Page 2
The Employees Retirement System meeting was recessed to allow the disability subcommittee
to discuss the non -duty request for applicant #2015-E0827.
The Employees Retirement System Board meeting recessed at 8:37 a.m.
The ERS Meeting resumed at 8:41 a.m.
Ms. Williams reported that the disability subcommittee meet and agreed to refer applicant
#2015-E0827 to the medical director for evaluation for non —duty disability.
There were no requests for refunds of accumulated contributions.
It was moved by Trustee Wood and supported by Trustee Mark Parker to excuse
Trustee McCaffery from the August Meeting of the Employees Retirement System
Board.
Adopted by the following vote: 7 - 0
Karen Williams reminded members of the upcoming MAPERS Fall Conference, the
NCPERS Public Safety Conference, and I.F.E.B.P. Conference.
The Employees Retirement System discussed dates to go to due diligence visits to
Northern Trust and William Blair in early November. The Board provided possible
dates of November 4, 5 or 6 or December 2, 3, or 4. Asset Consulting Group (ACG)
will coordinate the visits.
Attorney Ken Lane provided an update of the Northern Trust litigation. Attorney
discussed a possible anti-trust litigation offered by Milberg. Attorney Lane informed the
ERS Board that the litigation information had been sent to the City Attorney's Office for
review.
Attorney Lane distributed an opinion on retirees that return to the City of Lansing as
contract employees. Attorney Lane discussed that there was an issue regarding
whether the practice served to violate certain IRS regulations that apply to the
Retirement System. Attorney Lane discussed retirement distributions under the IRS
regulations. Every retiree that comes back to City of Lansing is required to sign a
contract that complies with the IRS guidelines.
Trustee McIntyre reported that as Human Resources Director, her office is working with
departments to fill permanent vacancies. Trustee McIntyre explained that most
contract workers are available to fill a short term need.
Employees Retirement System
Regular Meeting of August 27, 2015
Page 3
Attorney Lane stated that short-term contracts are permissible under the IRS
regulations.
Trustee Good inquired about how many contracts are in place and wondered how these
contracts are monitored for situations where retired employees may conflict with IRS
guidelines.
Trustee Dedic inquired about what the ERS Board needed to do going forward.
Attorney Lane stated the opinion has been provided to the administration, so the City
has been placed on notice. Attorney Lane stated that the opinion covers the due
diligence required by the ERS Board.
Attorney Lane distributed and reviewed the ERS Retirement Ordinance amendment regarding
the election of Board members. The amendment changes 292.04 regarding membership and
terms of office; and would remove the requirement that not more than one elected member shall
be from any one City Department.
Adopted by the following vote: 7 — 0.
Trustee Wood recommended that the amendment should be provided to the City Attorney's
Office for review and then placed on the agenda for City Council.
It was moved by Trustee Dedic and supported by Trustee Wood to approve the amendment to
Employees Retirement System Ordinance regarding Memberships; terms of office of the Board.
Adopted by the following vote: 7 — 0.
Attorney Lane will provide the approved amendment to the City Attorney's office.
Karen Williams distributed the Employees Retirement System Investment Policy Statement
revision. Asset Consulting Group recommended updates to the equity section to allow global
long/short investments.
It was moved by Trustee Mark Parker and supported by Trustee Good to approve the
Employees Retirement System Investment Policy Statement amendment.
Adopted by the following vote: 7 — 0
Karen Williams informed the Employees Retirement System Board of the administrative
quarterly cash flow withdrawal. The ERS Board did not have a quorum at the Joint
meeting.
Employees Retirement System
Regular Meeting of August 27, 2015
Page 4
It was moved by Trustee Wood and supported by Trustee Dedic to approve the
quarterly cash flow of $50,000 from Northern Trust Security Lending to the Comerica
account for administrative purposes.
Adopted by the following vote: 7 — 0.
Mr. Greg Stump, Boomershine Consulting Group presented the actuarial valuation for
the Employees Retirement System for the year ending 12/31/2014. Mr. Stump provided
the current status of the system, discussed recent changes and the future outlook. Mr.
Stump reviewed the current funding, cash flow and key valuation results. He discussed
past plan participants, and current employees.
Mr. Stump provided an overview of the changes from last year. He discussed the
demographic experience, investment experience and benefit changes. Mr. Stump also
informed the ERS Board that an Experience Study review should be scheduled for
2016. Mr. Stump will provide a draft valuation for review at the ERS Board's next
meeting.
Attorney Lane recommended that the ERS Board vote to maintain its 7.6% assumption
rate when it votes upon the valuation.
Karen Williams reported that the Arrivos Software has been put into production. Ms.
Williams reported that the Retirement Office will begin the next stage of implementation
with manual data migration, updating employee and retiree records. The Retirement
Office will update active employee service records and contributions, with an estimated
time frame of six months. The Retirement Office will continue to work with Tegrit to fine
tune the system. Ms. Williams also recommended that the Special Projects
subcommittee meet to determine placement of the website estimator on the Retirement
site.
Trustee Mark Parker provided a request from Tegrit to use the City of Lansing logo in its
customer list and on its website.
Attorney Ken Lane was informed that Tegrit also wished to prepare a press release
regarding that includes the City of Lansing and the logo.
Trustee Wood inquired if there is any provision that would allow the ERS Board to
withdraw its name and City logo from the Tegrit customer list.
Attorney Lane stated that he would confirm the ability to withdraw the ERS Board and
City logo from the Tegrit customer list. Attorney Lane recommended that the ERS
Board review the press release prior to providing its permission. The item was referred
to pending.
Ms. Williams presented Quarterly Cash Flow Report and the Securities Lending Report
for the month of July 2015.
Attorney Paul Novak distributed the City of Lansing Retirement System Portfolio
Monitoring Report. He also reviewed the possibility of the anti-trust class action
securities litigation. Milberg would provide a recommendation to the ERS Board to be
the lead plaintiff is the losses are the largest in the class, after its review. The
Employees Retirement System could receive a pro -rata share, if there is a settlement.
It was moved by Trustee Wood and supported by Trustee Dedic to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 7 — 0.
The meeting adjourned at 10:01 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, 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
September 1{7, 2di-5 '
Thursday, 8:.30Kn.
The Board met in regular session and was called to order at 8:36a.m.
Present: Dedic, Good, McIntyre , Munroe, D. Parker, M. Parker, Wood — 7
Absent: Trustee Bernero, McCaffery
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the City Attorney's Office) Attorney Paul Novak, Milberg.
It was moved by Trustee Wood and supported by Trustee Munroe to approve the Official
Minutes of the Joint Police and Fire Retirement system and the Employees' Retirement
System Board Meeting of August 18, 2015.
Adopted by the following vote: 7 - 0
It was moved by Trustee Wood and supported by Trustee Munroe to approve the Official
Minutes of the Employees' Retirement System Board Regular Meeting of August 27,
2015.
Adopted by the following vote: 7 - 0
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: 328. Total deferred: 70. 1 death(s), Gunars Liepins
(UAW, retired 6/15/2013), died 8/22/2015, age 63, no beneficiary. Refunds made since
the last regular meeting amounted to $0.00. Retirement allowances paid for the month of
August 2015, amounted to $1,900,906.93. Total retirement checks printed for the ERS
System: 915. Total Retirement checks printed for both systems: 1631. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
There were no requests for regular age & service retirements.
There were no requests for duty disability retirements.
Employees Retirement System
Regular Meeting of September 17, 2015
Page 2
Karen Williams reported that the non -duty disability retirement, Applicant #2015-E0827 was sent
a letter requesting medical records for the Board's doctor
Karen Williams reported that Amanda Tringl, District Court has requested a refund of
her accumulated contributions of $2,976.49. She was not vested.
It was moved by Trustee Wood and supported by Trustee McIntyre to approve the
request for Refund of Accumulated Contribution of Amanda Tringle, District Court, not
vested for $2,976.49.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Mark Parker and supported by Trustee Munroe to excuse
Trustee McCaffery from the September Meeting of the Employees Retirement System
Board.
Adopted by the following vote: 7 - 0
Karen Williams reminded members of the upcoming MAPERS Fall Conference, and
I.F.E.B.P. Conference registration deadlines.
Karen Williams reported that the due diligence visit to see Northern Trust and William
Blair was being arranged for November 4 — 6. The Employees Retirement System
Board discussed travel by train. The Retirement Office will coordinate hotel
arrangement with Asset Consulting Group.
Attorney Ken Lane notified that the Employees Retirement System Board that it has its
contract with Dewpoint through December 31, 2015. Attorney Lane stated the monies
allocated for the contract has not been exhausted and Dewpoint services can be utilized
through the end of the year, if needed.
Attorney Ken Lane also updated the Police and Fire Retirement Board regarding
Tegrit's request to prepare a press release including the City of Lansing as one of its
clients. Also, the request wanted to include the City of Lansing and its logo on the
Tegrit website and promotional material.
Attorney Ken Lane requested a copy of the press release to be reviewed by the
Retirement Boards prior to granting permission to use the City logo.
Attorney Lane indicated that Northern Trust had a hearing in early August regarding the
appropriateness of the settlement amount. The Retirement Board should receive
information shortly regarding the settlement.
Employees Retirement System
Regular Meeting of September 17, 2015
Page 3
Attorney Lane reviewed the amendment to the Employees Retirement System Ordinance
regarding the composition of the Board. With the reconfiguration of the City Departments, it was
difficult to elect trustees from separate departments. Attorney Lane explained that there was
nothing in the collective bargaining agreements or within the charter to mandate that the elected
officials come from three different departments. Because of the reconfigured departments,
there were two trustees from one department as members of the Board, which violated the
Ordinance. The amendment changed 292.04 regarding membership and terms of office; and
removed the requirement that not more than one elected member shall be from any one City
Department. The amendment has passed through City Council and the ERS Board is in
compliance. Attorney Lane requested direction for creating the Board policy.
Trustee Wood updated the ERS Board regarding the City Council meeting and the
difficulty passing the amendment. Trustee Wood reported that there was much
discussion regarding the Board not being in compliance. Trustee Wood recommended
reaffirmation of the votes taken since the Board became aware of not being in
compliance in January 2015.
It was moved by Trustee Wood and supported by Trustee McIntyre to reaffirm all votes
taken since January 22, 2015 meeting when the Board became aware of not being in
compliance through the present meeting.
Adopted by the following vote: 7 — 0.
Trustee Wood committed to City Council that once a policy had been developed by the
ERS Board, she would take it to Council for review. Trustee Wood stated that she
would excuse herself from votes if the ERS Board decided to vote to not comply with
City Council's request
Trustee Dennis Parker indicated the ERS Board policy would not be bound by City
Council approval.
Trustee McIntyre requested that legal counsel provide a draft policy that members can
review to ensure that employees are equally represented.
Karen Williams distributed to trustees the draft actuarial valuation for the Employees
Retirement System for the year ending 12/31/2014 for review and discussion at the next
meeting.
Ms. Bennett indicated that the Finance Department would also review the draft and
report to the ERS Board.
Attorney Lane recommended that the ERS Board vote to maintain its 7.6% assumption
rate when it votes upon the valuation.
Employees Retirement System
Regular Meeting of September 17, 2015
Page 4
Karen Williams reported that the retirement estimator is now located on the Retirement
website for employee use.
Ms. Williams presented Monthly Investment Report and the Securities Lending Report
for the month of August 2015.
Trustee Wood requested that Attorney Ken Lane send a letter to current Council
Members who are up for elections regarding state law restrictions on accepting
contributions from City of Lansing Retirement Board vendors or individuals providing
service to the Boards..
Attorney Lane explained that Public Act 314 amendment that retirement system vendors
cannot provide contributions to officials that would have influence or decision making
regarding the City's Retirement Systems. Attorney Lane stated that would include the
Mayor and City Council members.
It was moved by Trustee McIntyre and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 7 — 0.
The meeting adjourned at 9:05 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting September:,17, 2015
City Council Conference Room Thursday�8:3(�-,�.m.
10th Floor, City Hall `''' c _
Lansing, MI
- r�o -�
The Board met in regular session and was called to order at 8:36a.m. - -_
Present: Dedic, Good, McIntyre , Munroe, D. Parker, M. Parker, Wood — 7 c�
Absent: Trustee Bernero, McCaffery fi '
Others: Karen E. Williams, Finance Department, Attorney Ken Lane, Clark Hill
(representing the City Attorney's Office) Attorney Paul Novak, Milberg.
It was moved by Trustee Wood and supported by Trustee Munroe to approve the Official
Minutes of the Joint Police and Fire Retirement system and the Employees' Retirement
System Board Meeting of August 18, 2015.
Adopted by the following vote: 7 - 0
It was moved by Trustee Wood and supported by Trustee Munroe to approve the Official
Minutes of the Employees' Retirement System Board Regular Meeting of August 27,
2015.
Adopted by the following vote: 7 - 0
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: 328. Total deferred: 70. 1 death(s), Gunars Liepins
(UAW, retired 6/15/2013), died 8/22/2015, age 63, no beneficiary. Refunds made since
the last regular meeting amounted to $0.00. Retirement allowances paid for the month of
August 2015, amounted to $1,900,906.93. Total retirement checks printed for the ERS
System: 915. Total Retirement checks printed for both systems: 1631. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
There were no requests for regular age & service retirements.
There were no requests for duty disability retirements.
Employees Retirement System
Regular Meeting of September 17, 2015
Page 2
Karen Williams reported that the non -duty disability retirement, Applicant #2015-E0827 was sent
a letter requesting medical records for the Board's doctor
Karen Williams reported that Amanda Tringl, District Court has requested a refund of
her accumulated contributions of $2,976.49. She was not vested.
It was moved by Trustee Wood and supported by Trustee McIntyre to approve the
request for Refund of Accumulated Contribution of Amanda Tringle, District Court, not
vested for $2,976.49.
Adopted by the following vote: 7 — 0.
It was moved by Trustee Mark Parker and supported by Trustee Munroe to excuse
Trustee McCaffery from the September Meeting of the Employees Retirement System
Board.
Adopted by the following vote: 7 - 0
Karen Williams reminded members of the upcoming MAPERS Fall Conference, and
I.F.E.B.P. Conference registration deadlines.
Karen Williams reported that the due diligence visit to see Northern Trust and William
Blair was being arranged for November 4 — 6. The Employees Retirement System
Board discussed travel by train. The Retirement Office will coordinate hotel
arrangement with Asset Consulting Group.
Attorney Ken Lane notified that the Employees Retirement System Board that it has its
contract with Dewpoint through December 31, 2015. Attorney Lane stated the monies
allocated for the contract has not been exhausted and Dewpoint services can be utilized
through the end of the year, if needed.
Attorney Ken Lane also updated the Police and Fire Retirement Board regarding
Tegrit's request to prepare a press release including the City of Lansing as one of its
clients. Also, the request wanted to include the City of Lansing and its logo on the
Tegrit website and promotional material.
Attorney Ken Lane requested a copy of the press release to be reviewed by the
Retirement Boards prior to granting permission to use the City logo.
Attorney Lane indicated that Northern Trust had a hearing in early August regarding the
appropriateness of the settlement amount. The Retirement Board should receive
information shortly regarding the settlement.
Employees Retirement System
Regular Meeting of September 17, 2015
Page 3
Attorney Lane reviewed the amendment to the Employees Retirement System Ordinance
regarding the composition of the Board. With the reconfiguration of the City Departments, it was
difficult to elect trustees from separate departments. Attorney Lane explained that there was
nothing in the collective bargaining agreements or within the charter to mandate that the elected
officials come from three different departments. Because of the reconfigured departments,
there were two trustees from one department as members of the Board, which violated the
Ordinance. The amendment changed 292.04 regarding membership and terms of office; and
removed the requirement that not more than one elected member shall be from any one City
Department. The amendment has passed through City Council and the ERS Board is in
compliance. Attorney Lane requested direction for creating the Board policy.
Trustee Wood updated the ERS Board regarding the City Council meeting and the
difficulty passing the amendment. Trustee Wood reported that there was much
discussion regarding the Board not being in compliance. Trustee Wood recommended
reaffirmation of the votes taken since the Board became aware of not being in
compliance in January 2015.
It was moved by Trustee Wood and supported by Trustee McIntyre to reaffirm all votes
taken since January 22, 2015 meeting when the Board became aware of not being in
compliance through the present meeting.
Adopted by the following vote: 7 — 0.
Trustee Wood committed to City Council that once a policy had been developed by the
ERS Board, she would take it to Council for review. Trustee Wood stated that she
would excuse herself from votes if the ERS Board decided to vote to not comply with
City Council's request
Trustee Dennis Parker indicated the ERS Board policy would not be bound by City
Council approval.
Trustee McIntyre requested that legal counsel provide a draft policy that members can
review to ensure that employees are equally represented.
Karen Williams distributed to trustees the draft actuarial valuation for the Employees
Retirement System for the year ending 12/31/2014 for review and discussion at the next
meeting.
Ms. Bennett indicated that the Finance Department would also review the draft and
report to the ERS Board.
Attorney Lane recommended that the ERS Board vote to maintain its 7.6% assumption
rate when it votes upon the valuation.
Employees Retirement System
Regular Meeting of September 17, 2015
Page 4
Attorney Lane recommended that the ERS Board vote to maintain its 7.6% assumption
rate when it votes upon the valuation.
Karen Williams reported that the retirement estimator is now located on the Retirement
website for employee use.
Trustee Mark Parker provided a request from Tegrit to use the City of Lansing logo in its
customer list and on its website.
Attorney Ken Lane was informed that Tegrit also wished to prepare a press release
regarding that includes the City of Lansing and the logo. Attorney Lane requested that
Tegrit provide a copy of the press release for Board review
Trustee Wood inquired if there is any provision that would allow the ERS Board to
withdraw its name and City logo from the Tegrit customer list.
Ms. Williams presented Monthly Investment Report and the Securities Lending Report
for the month of August 2015.
Trustee Wood requested that Attorney Ken Lane send a letter to current Council
Members who are up for elections regarding state law restrictions on accepting
contributions from City of Lansing Retirement Board vendors or individuals providing
service to the Boards..
Attorney Lane explained that Public Act 314 amendment that retirement system vendors
cannot provide contributions to officials that would have influence or decision making
regarding the City's Retirement Systems. Attorney Lane stated that would include the
Mayor and City Council members.
It was moved by Trustee McIntyre and supported by Trustee Parker to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 7 — 0.
The meeting adjourned at 9:05 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting October 22, 2015 .
City Council Conference Room Thursday, 8:30 p.,m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:36a.m.
Present: Dedic, McIntyre , Munroe, M. Parker, Wood — 5
Absent: Trustee Bernero, Good, McCaffery, D. Parker
Trustee Mark Parker presided.
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Dedic and supported by Trustee McIntyre to approve the
Official Minutes of the Employees' Retirement System Board Regular Meeting of
September 17, 2015.
Adopted by the following vote: 5 - 0
There were no public comments.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0
retired. Total active membership: 327. Total deferred: 70. 3 death(s), Edmund Bennett
(NonBargaining, retired 5/19/1973), died 9/17/2015, age 83, no beneficiary; Bonita
Schade (Teamster 243, retired 7/16/2010), died 9/23/2015, age 71, no beneficiary; Vera
M. Horn, died 10/11/2015, age 93, spouse of NonBargaining retiree. Refunds made
since the last regular meeting amounted to $0.00. Retirement allowances paid for the
month of September 2015, amounted to $1,901,828.42. Total retirement checks printed
for the ERS System: 915. Total Retirement checks printed for both systems: 1630.
Eligible domestic relations orders received: 0. Domestic relations orders pending: 0.
Eligible domestic relations orders certified: 0.
It was moved by Trustee Wood and supported by Trustee McIntyre to approve the following
requests for Regular Age and Service Retirements:
Karen Olds (Public Service/UAW), 13 years, 5 months of service credits, age 54,
effective September 21, 2015. (Nonduty Death)
Brian R. Davis (Public Service/Teamster 243), 25 years, 5 months of service credits,
age 57, effective October 24 ,2015.
Employees Retirement System
Regular Meeting of October 22, 2015
Page 2
It was moved by Trustee Wood and supported by Trustee McIntyre to approve the following
requests for Regular Age and Service Retirements (continued):
Terri Taylor (Human Resources/Executive Management), 8 years, 9 months of service
credits, age 58, effective November 1, 2015. (From Deferred)
Zubair Ahmad, (Public Service/Teamster 214), 18 years,1 months of service credits,
age 66, effective November 2, 2015.
Adopted by the following vote: 5- 0
There were no requests for duty disability retirements.
There were no requests for non -duty disability retirements.
There were no refunds of refund of accumulated contributions
Karen Williams reported that Trustee Dennis Parker and Trustee Good contacted the
Retirement Office and indicated that they would not be available for the October meeting.
It was moved by Trustee Carol Wood and supported by Trustee Dedic to excuse
Trustee McCaffery and Trustee Dennis Parker from the October Meeting of the
Employees Retirement System Board.
The ERS Board noted that Trustee Good is an ex -officio member and does not need to
be excused.
Adopted by the following vote: 5 - 0
Trustee McIntyre left the meeting.
Attorney Ken Lane reviewed the amendment to the ERS Board election policy. The
policy as revised to allow no more than one elected member from the same division in
any one city department.
The election policy was moved to pending to allow time for trustees to review the
document.
Trustee Mark Parker provided an oral report of his attendance at the MAPERS Fall
Conference. Trustee Parker stated that the conference was dominated by actuaries.
He reviewed the workshop he attended that featured Mr. Greg Stump, the Board's
Actuary.
Trustee Dedic provided his oral report of his attendance at the MAPERS Fall
Conference. Trustee Dedic discussed commodities and other asset classes.
Employees Retirement System
Regular Meeting of October 22, 2015
Page 3
Attorney Lane reported that he attended the legislative breakfast at the MAPERS Fall
Conference. He noted that SB 102 would affect the State Teachers public retirement
plan and would switch them from a hybrid Defined Benefit/Defined Contribution Plan to
a Defined Contribution Plan.
Attorney Lane also reported upon HB 4522/4523 that would expand subpoena powers
of the Senate Oversight Committee to attain non-public records from public bodies
throughout the state. Attorney Lane stated that public pension systems would fall
under this bill.
Karen Williams reported that the due diligence visit to see Northern Trust and William
Blair was being arranged for November 5. Members are traveling by train and the
Retirement Office will coordinate hotel arrangement with Asset Consulting Group.
Attorney Ken Lane also updated the Employees Retirement Board regarding Tegrit's
request to prepare a press release including the City of Lansing as one of its clients.
Also, the request wanted to include the City of Lansing and its logo on the Tegrit website
and promotional material.
Attorney Ken Lane requested a copy of the press release to be reviewed by the
Retirement Boards prior to granting permission to use the City logo.
The Employees Retirement System Board reviewed the draft valuation for the year
ending 12/31/2014.
Attorney Lane recommended that the ERS Board vote to maintain its 7.6% assumption
rate when it votes upon the valuation.
Trustee Wood noted to that she gave a report to City Council regarding the retirement
boards. She noted that the City contributions were approximately $500,000 less this
year.
Trustee Wood also discussed the Lansing Financial Health Team meeting and
expressed concern that the team had not met with the Retirement Boards.
Trustee Wood recommended a joint Retirement Board meeting with the Financial Health
Team, the actuary and investment advisor to address misinformation and other issues.
Trustee Dedic noted that there was no distinction or separation made between the two
retirement system plans and health care plans when unfunded liabilities are reported.
He noted that the majority of the unfunded liability was for current retirees. Trustee
Dedic discussed that the ERS Board has taken corrective action on vesting,
amortization schedules, and valuation returns that would impact future retirees.
Trustee Wood noted that there are still many funded vacancies within the City.
The SAS 70/Custody and Fund Services SOC 1 Report was distributed for Board
review.
Ms. Williams presented Monthly Investment Report and the Securities Lending Report
for the month of September 2015.
The meeting adjourned at 9:17 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
City Council Conference Room
10th Floor, City Hall
Lansing, MI
November 19,'2b15
Thursday'�,'8'.3b-a.m
The Board met in regular session and was called to order at 8:36a.m.
Present: Dedic (8:40), Good, Munroe, D. Parker, M. Parker, Wood — 6
Absent: Trustee Bernero, McCaffery, McIntyre
Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane,
Clark Hill (representing the City Attorney's Office).
It was moved by Trustee Wood and supported by Trustee Good to approve the Official
Minutes of the Employees' Retirement System Board Regular Meeting of October 22,
2015.
Adopted by the following vote: 5 - 0
There were no public comments.
Secretary's Report. 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0
retired. Total active membership: 332. Total deferred: 69. 1 death(s), Rickford P.
Wilson (UAW, retired 11/1/2012), died 11/3/2015, age 57, beneficiary to receive 100%.
Refunds made since the last regular meeting amounted to $0.00. Retirement allowances
paid for the month of October 2015, amounted to $1,898,536.58. Total retirement checks
printed for the ERS System: 912. Total Retirement checks printed for both systems:
1629. Eligible domestic relations orders received: 0. Domestic relations orders pending:
0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the following
requests for Regular Age and Service Retirements:
Brian J. Ross (Public Service/Non Bargaining), 15 years, 2 months of service credits,
age 58, effective December 1, 2015 (with 9 years, 3 months of reciprocal time with
MERS reciprocal unit Clinton County) (From Deferred).
Bruce Utter (City Clerk/Teamster), 12 years, 2 months of service credits, age 66,
effective December 19, 2015.
Adopted by the following vote: 5- 0
Employees Retirement System
Regular Meeting of November 19, 2015
Page 2
There were no requests for duty disability retirements.
There were no requests for non -duty disability retirements
There were no refunds of refund of accumulated contributions
Trustee Dedic provided an oral report of the IFEBP Conference. Trustee Dedic attended
workshops that focused on the Affordable Health Care Act. He discussed the "Cadillac" tax.
Trustee Dedic discussed pension viability and how retirement systems liability is grouped with
unfunded health care. He also discussed workshops on how we communicate with employees.
He informed the Retirement Board, that studies indicate 60% of the workforce would be
millennials within ten years. These groups of employees are less traditional, more apt to
change jobs and communicate in different ways.
Trustee Mark Parker provided an oral report of the due diligence visit. The first investment
manager of the day was William Blair. Trustee Parker discussed that William Blair focused on
their research analysts as career track employee. He discussed Northern Trusts operations,
securities lending, and how class action litigations are handled. Trustee Parker expressed that
the due diligence visit was very positive.
Trustee Good provided an oral report of the due diligence visit. Trustee Good discussed the
trading desk at William Blair. Trustees were able to sit with the investment manager as he
discussed and demonstrated how trades are monitored and made.
Trustee Dennis Parker provided an oral report of the due diligence visit. Trustee Parker
concurred with the observations of Trustee Mark Parker and Trustee Good. He was impressed
with Northern Trust and found the investment manager very employee oriented and provided an
on-site day care system. He remarked that some of the children who grew up in the system
are now employees.
Karen Williams reported that Asset Consulting Group provided a summary of the due diligence
visit for trustees.
Karen Williams reported that the retirement office received the invoices for the annual
membership dues for MAPERS ($100), NCPERS ($250), and IFEBP ($960 split evenly between
ERS and Police and Fire Retirement Board).
It was moved by Trustee Good and supported by Trustee Dedic to pay the annual membership
due for MAPERS of $100, NCPERS of $250, and IFEBP of $960, which will be split with the
Police and Fire System.
Adopted by the following vote: 6 — 0.
Employees Retirement System
Regular Meeting of November 19, 2015
Page 3
Attorney Lane reported that Public Act 314 requires a budget for the system. Attorney
Lane will provide a draft at the next meeting for approval.
Attorney Ken Lane reviewed the amendment to the ERS Board election policy. The
policy as revised allows no more than one elected member from the same division in
any one city department. Elected trustee positions on the board will not be invalidated
by changes to divisions or departments made by the administration. The ERS Board
election policy could be suspended to allow modifications.
The Employees Retirement System Ordinance has been amended so that the three
trustees are elected by Board rules and policies.
Trustee Dedic requested that Angela Bennett provide a break -down of employees within
each department.
The election policy was returned to pending for further information.
The Employees Retirement System Board reviewed the draft valuation for the year
ending 12/31/2014.
It was moved by Trustee Wood and supported by Trustee Dedic to accept the actuarial
valuation report for the period ending 12/31/2014.
Adopted by the following vote: 6 — 0
Attorney Lane opined that the ERS Board should vote to maintain its 7.6% assumption
rate as recommended by the Board's Actuary.
It was moved by Trustee Wood and supported by Trustee Mark Parker for the
Employees Retirement System to maintain its 7.6% assumption rate of return as
recommended by the actuary.
Adopted by the following vote: 6 -0.
The ERS Board requested that Attorney Ken Lane review the SAS 70/Custody and
Fund Services SOC 1 Report. He confirmed that there were no substantive changes to
the report
It was moved by Trustee Good and supported by Trustee Mark Parker to accept the
Northern Trust Custody and Fund Services SOC 1 Report.
Adopted by the following vote: 6 — 0.
Karen Williams distributed the 2016 Schedule of Meetings. The ERS Retirement Board
discussed amendments to the schedule.
It was moved by Mark Parker and supported by Trustee Wood to approve the amended
2016 Schedule of Employees Retirement System Board meetings.
Adopted by the following vote: 6 — 0
Karen Williams reported that Gabriel Roeder Smith provided the costs to update Minute
Master of $3,200.
It was moved by Trustee Wood and supported by Trustee Dedic to approve the cost of
$3,200 Minute Master services and to research if the Arrivos system can be updated to
include Board documents.
Trustee Wood requested that the ERS Board research if the new retirement system
could be updated to include its minutes, agenda and Board documents.
Angela Bennett discussed concern regarding the administration of bringing the system
in-house.
Adopted by the following vote: 6 - 0.
Ms. Williams presented Quarterly Expenses Report for the period ending for the third
quarter of 2015, and the Securities Lending Report for the month of October 2015.
It was moved from Trustee Wood and supported by Trustee Dedic to adjourn the
Employees Retirement System November meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:21 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
December 17, 2015
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:36a.m.
Present: Good, Kraus, McIntyre, Munroe, D. Parker, M. Parker, Wood — 7
Absent: Trustee Bernero, Dedic
Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken "Lane,
Clark Hill (representing the City Attorney's Office).
It was moved by Trustee Wood and supported by Trustee Munroe to approve the Official
Minutes of the Employees' Retirement System Board Regular Meeting of November 19,
2015.
Adopted by the following vote: 7 — 0
It was moved by Trustee Good and supported by Trustee Mark Parker to approve the
Official Joint Minutes of the Employees' Retirement System Board and the Police and
Fire Retirement System Board Meeting of November 19, 2015.
Adopted by the following vote: 7 - 0
There were no public comments.
Secretary's Report. 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2
retired. Total active membership: 332. Total deferred: 68. 2 death(s), Juanita M.
Lewis, (Teamster. Retired 11/21/1992), died 10/23/2015, age 82, no beneficiary; Aurora
Bautista (Teamster, retired 8/24/1984), died 11/12/2015, age 92, no beneficiary.
Refunds made since the last regular meeting amounted to $0.00. Retirement allowances
paid for the month of November 2015, amounted to $1,904,065.67. Total retirement
checks printed for the ERS System: 914. Total Retirement checks printed for both
systems: 1634. Eligible domestic relations orders received: 0. Domestic relations orders
pending: 0. Eligible domestic relations orders certified: 0.
Employees Retirement System
Regular Meeting of December 17, 2015
Page 2
It was moved by Trustee Kraus and supported by Trustee Wood to approve the following
requests for Regular Age and Service Retirements:
Khalil Abdul-Baith (Public Service/UAW), 16 years, 5 months of service credits, age 69,
effective November 1, 2015.
Adopted by the following vote: 7- 0
There were no requests for duty disability retirements.
There were no requests for non -duty disability retirements.
There were no refunds of refund of accumulated contributions
It was moved by Trustee Mark Parker and supported by Trustee Wood to excuse Trustee Dedic
from the December Employees' Retirement System Board Meeting.
Adopted by the following vote: 7 -0.
Attorney Lane reported that the Retirement Ordinance is being processed through the
City Attorney's Office.
Attorney Lane reported that he had not heard from Tegrit regarding the use of the
Board's logo. Tegrit was to provide a press release to be reviewed by the Board.
Attorney Lane did verify that the City logo was not being used on the Tegrit website.
Trustee McIntyre reported that there has been progress made with the Retirement
Ordinance review, now that all of the collective bargaining agreements have been
finalized.
Attorney Lane reported that Public Act 314 requires a budget for the system. Attorney
Lane distributed a draft for adoption. Attorney Lane noted that Dewpoint project
manager fees have been eliminated from the budget.
Trustee Mark Parker inquired if the Retirement Office would need the project manager
for anything associated with the implementation of the software.
Ms. Williams indicated that the project manager would only be needed when the
software requires updates.
Trustee Kraus inquired if the retirement software had been fully implemented and ready
for use.
Employees Retirement System
Regular Meeting of December 17, 2015
Page 3
Ms. Williams reported that the retirement software has not been fully implemented. Ms.
Williams explained that manual data from the retirement files is being entered into the
new system. The Arrivos system does allow the Retirement Office to prepare
retirement calculations and payroll reporting.
Trustee Kraus suggested that the Retirement Board add a budget for a contract
employee for the data entry for the manual conversion.
Karen Williams stated that the contract employee would be used to enter retiree
information into the system. Ms. Williams would continue to review and correct service
credits for active employees.
Trustee Wood expressed concern about how the contract person would be utilized and
how the contract would be drafted.
Angela Bennett noted that data conversion is a big part of implementation for new
software systems.
Trustee Wood requested that Ms. Williams bring a recommendation for the cost and
amount of hours that would be needed to complete the data entry for retirees.
Trustee Dennis Parker moved the item to pending to allow the Board time to review and
amend the annual budget.
Angela Bennett reported that on November 25, 2015, $10,181.620 was transferred by
the City to the Employees' Retirement System for the 2015 pension contribution. Ms.
Bennett appointed that the contribution is 100% of the actuarially -determined
contribution amount from the 12/31/2014 valuation.
It was moved by Trustee Wood and supported by Trustee Mark Parker to accept the
contribution of $10,181,620 that was transferred from the City of Lansing to the
Employees' Retirement System for 2015.
Adopted by the following vote: 7 - 0.
Ms. Williams reported that she researched the potential of using existing retirement
board software to maintain Board minutes and documents. Ms. Williams distributed
information on the Arrivos Imaging Module. The module is a stand-alone product that
could be integrated with the current system. Ms. Williams is waiting additional
responses to her questions regarding cost and implementation.
Attorney Ken Lane reviewed the amendment to the ERS Board election policy. The
policy as revised allows no more than one elected member from any one city
department, which are 1) Public Service, 2)Parks and Recreation ad the Planning and
Neighborhood Development, 3) City Hall (for all other departments. Elected trustee
positions on the board will not be invalidated
rdbelectao 9 policy divisions
be suspendedepartmento
ts
made by the administration. The
allow modifications.
The Employees Retirement System Ordinance has been amended so that the three
trustees are elected by Board rules and policies.
Angela Bennett provided a summary of staffing levels within each department.
Trustee Dennis Parker requested if the policy allowed for at -large elections.
Trustee Munroe and Trustee Kraus expressed concern that an at -large election would
not be equitable representation of the departments, because Public Service is so much
larger than the other departments combined.
Trustee Mark Parker expressed concern that trustees who take promotions or move
between departments are penalized.
The election policy was returned to pending for further discussion.
Trustee Munroe requested to be excused from the meeting.
Ms. Williams presented the Monthly Investment Report and the Securities Lending
Report for the month of November 2015.
It was moved from Trustee Wood and supported by Trustee Mark Parker to adjourn the
Employees Retirement System December meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:21 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees Retirement System