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HomeMy WebLinkAbout2016 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI January- 21,b16, Thursday, 8:30 a"h. -k The Board met in regular session and was called to order at 8:37 a.m. ., Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Riley — 7 Absent: Trustee Bernero, Woody Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Good and supported by Trustee Mark Parker to approve the Official Minutes of the Employees' Retirement System Board Regular Meeting of December 17, 2015. Adopted by the following vote: 7 - 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: 331. Total deferred: 69. 2 death(s), Helen Davidson, died 12/2/2015, age 93, spouse of NonBargaining staff; Diane Townsend (Parks, retired 10/21/2000), died 1/2/2016, age 67, no beneficiary. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of December 2015, amounted to $1,902,584.73. Total retirement checks printed for the ERS System: 915. Total retirement checks printed from both systems: 1632. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the Regular Age and Service Retirements with one vote: Adopted by the following vote: 7 — 0 Employees Retirement System Regular Meeting of January 21, 2016 Page 2 It was moved by Trustee Dedic and supported by Trustee Good to approve the following requests for Regular Age & Service Retirement: Michael Leidi (Finance/Teamster) 10 years, 4 months of service credits, age 58, effective January 1, 2016. (From Deferred) Annette Milekovich (Public Service/Teamster), 12 years, 4 months of service credits, age 58, effective January 15, 2016. James R. Deline (City Council Staff), 20 years, 4 months of service credits, age 62, effective January 30, 2016. Rosanna Houston (Finance/Teamster), 30 years, 2 months of service credits, age 60, effective January 30, 2016.. Bernard Brantley (Human Resources/Teamster) 12 years, 4 months of service credits, age 69, effective February 1, 2016. Faith Rach (Public Service/Teamster), 17 years, 4 months of service credits, age 58, effective March 1, 2016. Adopted by the following vote: 6 - 0 There were no requests for duty disability retirements. There were no requests for non -duty disability retirements. Karen Williams reported that there two requests for Refunds of Accumulated Contributions: Faith Sackey, District Court Teamster, not vested, $3,288.21; and Taneashia Morrell, District Court Exempt, not vested $586.01. It was moved by Trustee Wood and supported by Trustee Good to approve the requests for Refunds of Accumulated Contributions of Faith Sackey for $3,288.21 and Taneaishia Morrell, $586.01. Adopted by the following vote: 7 - 0 The Employees Retirement System Board noted that Trustee Riley is an ex -officio member that does not need to be excused. Karen Williams announced that MAPERS One Day Seminar is scheduled for March 4, 2016 Attorney Ken Lane reported that the Retirement Ordinance in under review with the City Attorney's Office and should be completed soon, Employees Retirement System Regular Meeting of January 21, 2016 Page 3 Attorney Ken Lane distributed an review the Employees Retirement System Annual Budget. Amendments to the budget included showing the actual versus the proposed expenses for the previous year. Trustee Mark Parker inquired about an allocation for temporary worker to assist with the Tegrit data migration. Attorney Lane reported that the Police and Fire Retirement System did not approve monies for a temporary worker, but would be willing to adjust their budget if an allocation was approved by the Employees Retirement System. Karen E. Williams estimated there were approximately 1700 files with information that needs to be migrated to the Arrivos program. Ms. Angela Bennett believed that a possible budget of $9,000 - $12,000 would be adequate to complete the data entry. The Employees Retirement System discussed the possible wage scale It was moved by Trustee Wood and supported by Trustee Dedic to allocate monies for a contractual budget for Arrivos data migration, with a recommendation for the Police and Fire Retirement Board to split the cost. Adopted by the following vote: 7 - 0 Trustee Wood recommended that the Joint Adhoc Committee for Health Care be eliminated. It was moved by Trustee Wood and supported by Trustee Good to eliminate the Joint Adhoc Committee for Health Care. Adopted by the following vote: 7 — 0. The Employees Retirement System discussed preferences for subcommittee assignments. Trustee Dennis Parker reported that Attorney Ken Lane reviewed the amended Election Policy for the Employees Retirement System Board. Trustee Mark Parker preferred the at -large election. Trustee Parker discussed that the at -large election is more far-sighted and guarantees multiple candidates, increased accountability and allows all employees to participate. Employees Retirement System Regular Meeting of January 21, 2016 Page 4 Trustee Kraus expressed concern that all three representatives could be from one department. Trustee Munroe expressed concern that the smaller departments would be shut out of the process. Trustee Munroe did not feel the at -large elections were equitable. Trustee Wood noted that City Council has at -large memberships and expressed concern that with three department representative, the ERS Board had compliance issues with the Ordinance and its policy. Attorney Lane noted that language has been included in the policy to allow an elected member to serve out their term on the ERS Board if their department merges with another. It was moved by Trustee Mark Parker and supported by Trustee Dedic to amend the Election Policy to have at -large nominations for the elected trustee positions. Adopted by the following vote: 4-3 (Chair voted affirmative to break tie) Ms. Williams presented the Quarterly Expenses Report and Securities Lending Report for the month of December 2015. Trustee Kraus inquired if Trustee McIntyre provided a report from the IFEBP conference.. The ERS Board requested that the chair contract Trustee McIntyre regarding submission of a written report for her IFEBP Conference attendance. Karen Williams recommended $10,000 from the Securities Lending for the Board's Administrative Expenses. It was moved by Trustee Wood and supported by Trustee Good to approve $10,000 from the Securities Lending Account for the Police and Fire Retirement Board Administrative expenses. Adopted by the following vote: 7 — 0. Karen Williams indicated that the Comerica Account has a large amount of cash reserves and Asset Consulting Group has not recommended a quarterly cash flow withdrawal from the portfolio. Trustee Wood expressed concern regarding if the monies in Comerica was receiving interest. Trustee Wood recommended a threshold that would trigger money to be invested to the portfolio. The Employees Retirement System Board requested a recommendation from Asset Consulting Group regarding what could be done with excess cash. The meeting adjourned at 9:25 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 February.18,.2016 City Council Conference Room Thursday;'�8:3Q`.a.m. 10th Floor, City Hall Lansing, MI ry The Board met in regular session and was called to order at 8:36 a.m. Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Riley — 7 Absent: Trustee Bernero, Wood C0 Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Dedic and supported by Trustee Kraus to approve the Official Minutes of the Employees' Retirement System Board Regular Meeting of January 21, 2016. 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, 4 retired. Total active membership: 329. Total deferred: 70. 2 death(s), Robert L. Spalding, (Finance, retired 1/4/1993), died 12/20/2015, age 87, spouse to receive 50%.; Richard A. Seperic (Public Service, retired 10/7/1995), died 1/31/2016, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of January 2016, amounted to $1,907,701.76. 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. There were no requests for Regular Age and Service Retirement. There were no requests for Duty Disability Retirement. There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Ms. Williams reported that Trustee Wood was out ill and unable to attend the February Employees Retirement System Board meeting. Employees Retirement System Regular Meeting of February18, 2016 Page 2 It was moved by Trustee Dedic and supported by Trustee Munroe to excuse Trustee Wood from the February Employees Retirement System Board meeting. Adopted by the following vote: 7 - 0 Karen Williams announced that MAPERS One Day Seminar is scheduled for March 4, 2016 Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office and should be completed soon. Attorney Ken Lane distributed the revised Election Policy for the Employees Retirement System Board Attorney Ken Lane distributed the Employees Retirement System Annual Budget. Amendments to the budget included appropriations for retirement conference and contract employee of $7,000. It was moved by Trustee Good and supported by Trustee M. Parker to approve the 2016 Employees Retirement System Annual Budget.. Adopted by the following vote: 7 - 0 Trustee Kraus recommended that Ordinance Changes Committee be changed to Special Projects and combine it with Outside Legal Services. It was moved by Trustee Kraus and supported by Trustee Munroe to rename Ordinance Changes Committee to Special Projects and merge Outside Legal Service Committee within Special Projects. Adopted by the following vote: 7 — 0. The following Employees Retirement System subcommittees were approved for 2016: Disability Committee: D. Parker, Good, Riley Investment Committee: M. Parker, Good, Kraus, D. Parker, Wood Education Committee: M. Parker, Munroe Special Projects Committee: Wood, Kraus, Munroe, M. Parker Ms. Williams presented the Quarterly Expenses Report and Securities Lending Report for the month of January 2015. The meeting adjourned at 9:01 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 February 18, 2016 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:36 a.m Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Riley — 7 Absent: Trustee Bernero, Wood Others: Angela Bennett, Karen E. Williams, Finance Department; Lane, Clark Hill (representing the City Attorney's Office). Attorney; Kenneth It was moved by Trustee Dedic and supported by Trustee Kraus to approve the Official Minutes of the Employees' Retirement System Board Regular Meeting of January 21, 2016. 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, 4 retired. Total active membership: 329. Total deferred: 70. 2 death(s), Robert L. Spalding, (Finance, retired 1/4/1993), died 12/20/2015, age 87, spouse to receive 50%.; Richard A. Seperic (Public Service, retired 10/7/1995), died 1/31/2016, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of January 2016, amounted to $1,907,701.76. 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. There were no requests for Regular Age and Service Retirement. There were no requests for Duty Disability Retirement. There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Ms. Williams reported that Trustee Wood was out ill and unable to attend the February Employees Retirement System Board meeting. Employees Retirement System Regular Meeting of February18, 2016 Page 2 It was moved by Trustee Dedic and supported by Trustee Munroe to excuse Trustee Wood from the February Employees Retirement System Board meeting. Adopted by the following vote: 7 - 0 Karen Williams announced that MAPERS One Day Seminar is scheduled for March 4, 2016 Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office and should be completed soon. Attorney Ken Lane distributed the revised Election Policy for the Employees Retirement System Board Attorney Ken Lane distributed the Employees Retirement System Annual Budget. Amendments to the budget included appropriations for retirement conference and contract employee of $7,000. It was moved by Trustee Good and supported by Trustee M. Parker to approve the 2016 Employees Retirement System Annual Budget.. Adopted by the following vote: 7 - 0 Trustee Kraus recommended that Ordinance Changes Committee be changed to Special Projects and combine it with Outside Legal Services. It was moved by Trustee Kraus and supported by Trustee Munroe to rename Ordinance Changes Committee to Special Projects and merge Outside Legal Service Committee within Special Projects. Adopted by the following vote: 7 — 0. The following Employees Retirement System subcommittees were approved for 2016: Disability Committee: D. Parker, Good, Riley Investment Committee: M. Parker, Good, Kraus, D. Parker, Wood Education Committee: M. Parker, Munroe Special Projects Committee: Wood, Kraus, Munroe, M. Parker Ms. Williams presented the Quarterly Expenses Report and Securities Lending Report for the month of January 2015. The meeting adjourned at 9:01 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 March 17, 2016 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:38 a.m. Present: Good, Kraus, Munroe, D. Parker, M. Parker, Riley, Wood — 7 = Absent: Trustee Bernero, Dedic Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney *:Kenneth- Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Kraus and supported by Trustee Good to approve the Official Minutes of the Employees' Retirement System Board Regular Meeting of February 18, 2016. Adopted by the following vote: 7 - 0 It was moved by Trustee Good and supported Trustee Mark Parker to approve the Official Joint Minutes of the Police and Fire Retirement System and the Employees Retirement System Board Regular Meeting of February 1, 2016. Adopted by the following vote: 7 - 0 There were no public comments. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 328. Total deferred: 71. 1 death(s), Robert G. Trowbridge, (Public Service, retired 7/7/1992), died 2/17/2016, age 79, spouse to receive 100%. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of February 2016, amounted to $1,909,231.16. Total retirement checks printed for the ERS System: 915. Total Retirement checks printed for both systems: 1634. Eligible domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of March 17, 2016 Page 2 It was moved by Trustee Kraus and supported by Trustee Good to approve the following request for Regular Age and Service: Karen Chadwick, (Police -911 Dispatch/Teamster), 10 years, 6 months of service credits, age 58, effective February 1, 2016 (From Deferred) Adopted by the following vote: 7 — 0 Karen Williams submitted a request for duty disability retirement for Applicant #2016-E0317. The Chair referred the request for duty disability retirement to the disability subcommittee. The Employees Retirement System Board recessed to allow the disability subcommittee the opportunity to meet at 8:41 a.m. The Board resumed at 8:48 a.m. It was moved by Trustee Good and supported by Trustee Riley to refer Applicant #2016-E0317 to the Medical Director to proceed through the evaluation process. Adopted by the following vote: 7 - 0. There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Trustee Good inquired if the Karen Chadwick had deferred prior to the 911 Dispatch employees were transferred to Ingham County. Ms. Williams explained that Ms. Chadwick had separated in 2009 prior to the 911 Dispatch employees to Ingham County. Ms. Bennett added that only current employees were transferred to Ingham County. Trustee Dennis Parker reported that Trustee Dedic was unable to attend the March Employees Retirement System Board meeting. It was moved by Trustee Wood and supported by Trustee Mark Parker to excuse Trustee Dedic from the March Employees Retirement System Board meeting. Adopted by the following vote: 7 - 0 Karen E. Williams reported that MAPERS Spring Conference will be held May 20 — May 24, 2016. She requested that members who wished to attend should contact the Retirement Office. Employees Retirement System Regular Meeting of March 17, 2016 Page 3 Karen Williams distributed an updated Travel and Business Expense Policy. The policy provides a new mileage reimbursement of 54 cents. Mr. Greg Stump presented a preview of the 2015 actuarial valuations and experience study. Mr. Stump reviewed the current funding status of the Employees Retirement System. Mr. Stump reviewed the assets for retirees, active employees and cost profile. He provided an overview of the impact of 2015 investment returns and the change in funding outlook. Mr. Stump discussed what if scenarios for 2016, 2017 and five year projections. He discussed the upcoming valuation and an assumption review that will include retirements, terminations, mortality, economic assumptions, funding methods and policy. Mr. Stump discussed with the Board the impact of retirements, terminations, disabilities and deaths on the funding level. Mr. Stump suggested returning in September to review the actuarial valuation and experience study. Trustee Dennis Parker asked if Mr. Stump would bring a scenario if the ERS Board lowered its assumption interest rate to 7%. Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office and should be completed soon. Trustee Wood requested that Attorney Lane bring back a date certain for the ERS Retirement to be finished. Attorney Ken Lane updated the Employees Retirement System Board Plan Summary document to include new trustees. Attorney Ken Lane reviewed the Private Advisors agreement that reduces the management fee and had the paperwork available for the chairperson's signature. Attorney Ken Lane also requested an updated W-9 form for Private Advisors. Karen Williams explained that at the Joint meeting, the retirement Boards requested that Trustee Good bring some options for Board consideration for monies in the Comerica account. Trustee Good reported that the spoke to Comerica regarding the retirement account. The current accounts received "credits" for the money in the account. Trustee Good stated that if the money transferred to the "J" interest- bearing account, the system would pay more in service fees. Employees Retirement System Regular Meeting of March 17, 2016 Page 4 Trustee Good also provided information on certificates of deposits as an alternative option. Trustee Wood reported that the Police and Fire Retirement System requested that the information be forwarded to Asset Consulting Group (ACG) for evaluation and recommendation. It was moved by Trustee Wood and supported by Trustee Parker to send the Comerica information to Asset Consulting Group for a recommendation. Adopted by the following vote: 7 - 0 Karen Williams also distributed a memo from Asset Consulting Group to use the excess cash in the Comerica account for portfolio rebalance. Asset Consulting Group recommended investing excess monies to Integrity, William Blair, Lazard and Earnest Partners. It was moved by Trustee Mark Parker and supported by Trustee Wood to accept and approve the recommendation from Asset Consulting Group to invest $1,000,000 into the Integrity portfolio, invest $1,000,000 into the William Blair portfolio; invest $4,400,000 into the Lazard portfolio; invest $1,000,000 into the Earnest Partners portfolio of the excess monies within the Comerica account. Trustee Kraus noted that the City Treasurer, Trustee Good made a recommendation to place the monies in a combination of the "J" Fund and certificates of deposits. Trustee Kraus inquired if ACG had provided an analysis of putting the money in the portfolio versus the recommendation by the treasurer. Trustee Good indicated that her recommendation was based upon the recent market volatility and expressed concern about the potential for losses by placing all of the excess monies in the portfolio. Trustee Parker indicated that he spoke with George Tarlas and believed that placing the money in the portfolio would be the best option. Trustee Kraus asked if ACG could compare and contrast both options before the Board moved forward with investing the monies. Trustee Good indicated that the motion could be delayed one month until information is received from ACG. Trustee Parker withdrew his motion. Ms. Williams presented the Monthly Investment Report and Securities Lending Report for the month of February 2016. Trustee Good provided an update for the data entry clerk to assist with the pension software project. Trustee Good submitted a critical needs request for approval. Trustee Dennis Parker inquired why there was a critical needs request submitted if the position would be paid entirely be the Retirement Boards. Trustee Wood also expressed concern about the need for the request because the Retirement Board hires its own actuary, its own investment managers and other contract employees without approval from the City. The contract would be with the Retirement Boards. Ms. Bennett explained that all contract employees are required to go through the process. The process ensures that there is funding available. Ms. Bennett did not believe there would be any issues from following the procedures. Ms. Bennett reviewed the timeline and hoped to bring in recommendations at the next meeting. Trustee Wood inquired to legal counsel if the Retirement Board had the authority to hire its own contract employees without proceeding through critical needs. Attorney Lane indicated that PA 314 does allow the Retirement Board to hire its own contract employees. Trustee Kraus indicated that the employee would be paid through the payroll system Trustee Dennis Parker indicated the process was implemented during the period of economic downturn for positions that were critical for those departments. Trustee Parker did not see the need for the process for this contract employee. Trustee Wood indicated that the Boards could hold a special meeting if action was needed to move forward. Trustee Good inquired if the Employees Retirement Board wanted to see resumes or just receive a final recommendation from her. Trustee Good will work with the Retirement Office on the details. It was moved by Trustee Mark Parker and supported by Trustee Munroe to receive final recommendations from Trustee Good for the data entry person. Adopted by the following vote: 7 - 0 It was moved by Trustee Mark Parker and supported by Trustee Munroe to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:39 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 POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting April 19, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:30 a.m. Present: Trustees Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office; Tim McClure, Bala Rajamni, Tegrit Group.. It was moved by Trustee Fabus and supported by Trustee Good to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of March 15, 2016. Adopted by the following vote: 7— 0 Secretary's Report. 0 new fire member(s), 1 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 317. 1 death(s), Rose Hedley, died 3/10/2016, age 92, spouse of Fire retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of March 2016 amounted to $2,469,681.67. Total retirement checks printed for the P&F System: 719. Total retirement checks printed for both systems: 1635. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Oleson and supported by Trustee Wohlfert to approve the following applications for Regular Age & Service Retirement. Mark D. Morrall, Fire Department, 23 years of service credits, age 55, effective May 14, 2016. Adopted by the following vote: 7 — 0. Regular Meeting Council Conference Room 10th Floor, City Hall Lansing, MI April 19, 2016 Tuesday, 8:30 a.m. Page Two Karen E. Williams reported that documentation from Applicant #2016-F0119 had been scheduled to see Dr. Roth. The medical report is pending. Karen E. Williams was reported that the medical report for Applicant #2015-P1110 was submitted to the disability subcommittee for review. The Board recessed to allow the disability subcommittee the opportunity to meet regarding Applicant #2015-P1110. The Board recessed at 8:33 a.m. The Board resumed at 8:35 a.m. Trustee Fabus reported that the disability subcommittee had met and reviewed the medical director's report. The disability subcommittee recommended concurrence with the medical director and approval of the non -duty disability request for applicant #2015-P1110. It was moved by Trustee Fabus and supported by Trustee Good to approve the non -duty disability retirement request for Applicant #2015-P1110. Adopted by the following vote: 7 — 0. Karen E. Williams reported that MAPERS Spring Conference will be held May 20 — May 24, 2016. She requested that members who wished to attend should contact the Retirement Office. There were no requests for refund of accumulated contributions. Attorney Ken Lane updated the Police and Fire Retirement Board that the Ordinance is has been completed and will be available for review at the next meeting. Attorney Lane reported that the City Attorney's Office will also send the Retirement Ordinance for review to Human Resources. Attorney Ken Lane distributed an amended budget to include $7,000 for contractual service for a data entry clerk. Attorney Lane reviewed the process of service credit verification that was discussed with the Human Resources Director. The Retirement Office will review payroll records to verify that a member is not receiving credit for times when that member is not being paid.. Attorney Ken Lane reported the election policy is pending. Regular Meeting April 19, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Ken Lane reported about the mandatory retirement age for the police officers and firefighters. Attorney Lane reported that the age is consistent with state law, but can be changed through collective bargaining. Trustee St. Aubin inquired about liability to the Police and Fire Retirement Board for members who refuse to retire. Trustee St. Aubin reported that City administration has not historically enforced the mandatory age. Trustee St. Aubin stated that the Board is not responsible for enforcement of the mandatory age. Attorney Lane recommended that in cases where a member is past mandatory retirement age and refuses to leave, the Police and Fire Board can contact city administration. Karen Williams distributed a draft agenda for the Asset Consulting Group Educational Forum scheduled for May 11, 2016. Karen Williams requested any changes or additions to the agenda be forwarded to the Retirement Office. Ms. Williams would those updates for Asset Consulting Group. Mr. Tim McClure, CEO, Tegrit Group introduced himself and Mr. Bala Rajamani, Managing Director of Pension services. Mr. McClure explained that he and his team are visiting all of their clients. He reviewed the pension administration software clients that have Tegrit Group. He provided an overview of the employee - owned company. Mr. McClure discussed transparency of their company, and the enhancement of its products Mr. McClure provided an overview of his business and consulting background. Mr. McClure also discussed the diversification of the company into talent management, financial software and information technology consulting. Mr. Bala Rajamani discussed the security of hosted systems database. He explained that the systems are audited every six months. Mr. Rajamani discussed company security and how data is handled. Background checks are done on all employees. Trustee Tammy Good updated the Police and Fire Retirement Board regarding the data entry clerk. Trustee Good reviewed the resumes and selected a clerk. The temporary clerk position would be contracted through Personnel World and would be able to start next week. Trustee Good distributed the application and resume for Board review. Trustee Wood inquired if the contract employee would be bonded. Trustee Good would verify the bonded status and would have the employee take a confidentiality test offered by the State of Michigan. The employee would be required to pass the test. Attorney Lane updated the Retirement Board Contract employees. The Human Resource Director confirmed that notification had gone to all departments regarding contract employees. Info from the departments had been received. Director Riley request time to review the data and will give a report at the next Joint meeting. Ms. Williams presented Quarterly Expenses Report and the Securities Lending Report for the month of March 2016. The meeting adjourned at 9:09 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES -, CITY OF LANSING_ C-) EMPLOYEES' RETIREMENT SYSTEM � � m Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI April 21, F16 Thursday, fit. i06bm. The Board met in regular session and was called to order at 8:44 a.m. Present: Dedic, Munroe, D. Parker, M. Parker, Riley (8:56), Wood — 6 Absent: Trustee Bernero, Good, Kraus Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). 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: 329. Total deferred: 70. 2 death(s), Bonnie Foster, died 3/15/2016, age 85, spouse of Teamster retiree; Stanley Curtis (retired 7/22/1989/Nonbargaining), died 3/23/2016, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of March 2016, amounted to $1,911,400.84. Total retirement checks printed for the ERS System: 916. Total Retirement checks printed for both systems: 1635. Eligible domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. There were no requests for Regular Age and Service retirements. Karen Williams reported that the Retirement Office was waiting for documentation for the Applicant #2016-E0317 to submit the Medical Director for processing. There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Karen Williams stated that Trustee Good was unable to attend the April Employees Retirement System Board meeting due to training. Karen Williams also reported that Trustee Kraus requested to be excused from the April Employees Retirement System Board meeting. Trustee Wood noted that Trustee Good did not need to be excuse because she is ex -officio. Employees Retirement System Regular Meeting of April 21, 2016 Page 2 It was moved by Trustee Wood and supported by Trustee Munroe to approve the official minutes of the Employees' Retirement System Board Meeting of March 17, 2016. Adopted by the following vote: 5 — 0. It was moved by Trustee Mark Parker and supported by Trustee Wood to excuse Trustee Kraus from the April Employees Retirement System Board meeting. Adopted by the following vote: 5 - 0 Karen E. Williams reported that MAPERS Spring Conference will be held May 20 — May 24, 2016. She requested that members who wished to attend should contact the Retirement Office. Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office and should be completed for review at the next meeting. Attorney Ken Lane inquired if members had an opportunity to review the amended Employees Retirement System Board Plan Summary document to include new trustees. The Board will review at the next meeting. Trustee Riley entered the meeting. Karen Williams reviewed a request for employee, Michael Keith, for his ERS accumulated contributions that have expired. MMs. Williams explained that Mr. Keith was a former member of the ERS system as a dispatcher. Mr. Keith was advised by Retirement Staff at the time that he could use the reciprocal retirement act to combine his ERS time with the Police and Fire System to collect both pensions. Mr. Keith was not vested in the ERS system. Attorney Ken Lane discussed his legal opinion that members could not combine their Employees Retirement System service with Police and Fire Retirement System service through the Reciprocal Retirement Act. Attorney Lane explained the case was similar to a case with police officer who had former ERS time. It was moved by Trustee Mark Parker and supported by Trustee Wood based upon the legal counsel recommendation that ERS contributions balance be refunded to Mr. Michael Keith upon his retirement or separation of service from the City of Lansing. Adopted by the following vote: 6- 0 Employees Retirement System Regular Meeting of April 21, 2016 Page 3 Karen Williams distributed a draft agenda for the Asset Consulting Group (ACG) Educational Forum, May 11, 2016. Ms. Williams requested suggestions from the Trustees regarding agenda topics to be forwarded to ACG. Karen Williams distributed a memo from Asset Consult Group recommendation for moving Comerica account to the "J" fund. Mr. George Tarlas also provided a recommendation that monies in excess of the quarterly cash flow needs be invested in the portfolio. Trustee Mark Parker expressed concern that there was a missed opportunity to invest the monies in the portfolio. Trustee Parker explained that the Employees Retirement Board delayed action on the recommendation so that ACG could contrast the treasurer's recommendation of certificate of deposits and the "J fund" versus investment in the portfolio due to the volatile market. It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the recommendation from Asset Consulting Group to invest $1,000,000 into the Integrity portfolio, invest $1,000,000 into the William Blair portfolio, invest $4,400,000 into the Lazard portfolio, and invest $1,000,000 into the Earnest Partners portfolio. Adopted by the following vote: 6-0. Trustee Wood expressed concern regarding the bonding of the data entry position. Trustee Wood requested that legal counsel review the bonding status. Attorney Lane inquired if the data entry position would be contracted through the Retirement Board or through the City of Lansing. Ms. Angela Bennett stated that it would be the Retirement Board's decision to contract with Personnel World. Karen Williams provided the monthly investment report and Securities Lending report for the month of March 2016. Ms. Bennett wanted to clarify that she recollected the recommendation from Trustee Good regarding the "J Fund" was not a proposal for the excess cash, but informative for the Comerica account in general. Ms. Bennett explained that she recollected the concern of the Retirement Board was due to the volatility of the market and the timing of the investment. Trustee Mark Parker expressed concern that the Retirement Board missed out on the investment gains for the previous month by waiting. Trustee Dedic provided his report on the One Day Mapers Seminar. It was moved by Trustee Mark Parker and supported by Trustee Munroe to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:17 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 May 12, 2016 Thursday, 8:30 a.m. � No The Board met in regular session and was called to order at 8:35 a.m. cr, Good Kraus Munroe, D. Parker, M. Parker, Riley (8:41) — 7 Present: Dedic, c:� t 0 Absent: Trustee Bernero, Wood s t2 Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney :�enllth� Lane, Clark Hill (representing the City Attorney's Office). C C3 It was moved by Trustee Kraus and supported by Trustee Munroe to app%e ne Official Minutes of the Employees' Retirement System Board Meeting of April 21:,;2016. Trustee Kraus requested to make general comments regarding the minutes. Trustee Kraus stated that she understand and respects member frustration regarding investment decision. She did not want any member's frustration or rush to make an investment decision, to outweigh other members' right for due diligence. Trustee Mark Parker commented that the Board missed an opportunity for investment gains. Adopted by the following vote: 6 - 0 There were no public comments. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 329. Total deferred: 70. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of April 2016, amounted to $1,904,597.15. Total retirement checks printed for the ERS System: 914. Total Retirement checks printed for both systems: 1633. Eligible domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. There were no requests for Regular Age and Service retirements. Karen Williams reported that Applicant #2016-E0317 has been scheduled to see the Medical Director. Employees Retirement System Regular Meeting of May 12, 2016 Page 2 There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Trustee Dennis Parker stated that Trustee Wood was unable to attend the April Employees Retirement System Board meeting and requested to be excused. It was moved by Trustee Mark Parker and supported by Trustee Munroe to excuse Trustee Wood from the May Employees Retirement System Board meeting. Adopted by the following vote: 5 - 0 Karen E. Williams reported that MAPERS Spring Conference will be held May 20 — May 24, 2016. She indicated that the Board can send a delegate to Conference business meeting for voting purposes. Trustee Mark Parker volunteered to be a delegate at the MAPERS Spring Conference. Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office and should be completed for review at the next meeting. Attorney Ken Lane requested Board members review the Employees Retirement System Board Plan Summary document and any updates and changes to him. He will bring the amended document to the next meeting. Trustee Riley entered the meeting. Attorney Lane reported that through Asset Consulting Group, T Rowe Price Investment manager contacted the Employees Retirement System Board with a fee reduction agreement. Attorney Ken Lane reviewed the agreement and informed that Board that it was ready to be signed by the chairperson. Karen Williams reported that Asset Consulting Group provided a Public Fund Transparency Letter for the Employees Retirement Board acknowledgement. The letter detailed that Asset Consulting Group seeks to comply with all applicable laws, regulations and policies concerning gifts and entertainment of public officials and public employees. The letter further detailed that it anticipated that ACG may provide occasional meals associated with the normal and ordinary course of business of the Board of Trustees that requires ACC's attendance, at a cost that may range from $25 to $100 per person per event. Employees Retirement System Regular Meeting of May 12, 2016 Page 3 Attorney Ken Lane indicated the Employees Retirement System Board had an Ethic Policy and that the ACG amounts did not violate the Board's Policy or Public Act 314. Attorney Lane indicated that he reviewed the letter and informed that Board that it was ready to be signed by the chairperson. Karen Williams provided the annual Duty Disability Income Verification Report. One duty disability retiree had not submitted their annual outside income certification. The retiree will be sent a second letter. If the retiree does not respond, the Retirement Board may suspend the disability retirees' pension. Karen Williams distributed a posting for the Retirement Board Trustee Election. Ms. Williams indicated that Trustee Mark Parker's term will expire June 30, 2016. Nominating petitions will be available from the Retirement Office and posted for one month. The deadline for submission of nominating petition would be June 16, 2016, followed by a primary and general election if needed. Karen Williams provided an update of the Data Entry Project. Manual entry of retirement file data has started and good progress has been made. The project for all of the data entry and verification should be complete by September. Karen Williams provided the Quarterly Expenses Report and Securities Lending report for the month of April 2016. It was moved by Trustee Dedic and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 8:56 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 June 16, 2016 City Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:35 a.m. ;; En Present: Dedic, Good (8:39), Kraus, Munroe, D. Parker, M. Parker, Riley, Woi. s8 n Absent: Trustee Bernero C' _j m Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney K�neiE FQ Lane, Clark Hill (representing the City Attorney's Office). n cn O r .. N Trustee Munroe left the meeting. It was moved by Trustee Mark Parker and supported by Trustee Wood to approve the Official Minutes of the Employees' Retirement System Board Meeting of May 12, 2016. Adopted by the following vote: 5 - 0 It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the Official Minutes of the Joint Minutes of the Employees' Retirement System and Police and Fire Retirement Board Meeting of May 12, 2016. Adopted by the following vote: 5 — 0 There were no public comments. Secretary's Report. 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 328. Total deferred: 71. 1 death(s) Charles Bauer, (retired 1 /15/2002/ Police -Civilian), died 5/9/2016, no beneficiary. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of May 2016, amounted to $1,904,597.15. Total retirement checks printed for the ERS System: 914. Total Retirement checks printed for both systems: 1636. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of June 16, 2016 Page 2 It was moved by Trustee Dedic and supported by Trustee Mark Parker to approve the following requests for Regular Age and Service retirements: Paul H. Dykema, (Public Service/Teamster), 25 years, 4 months of service credits, age 63, effective July 1, 2016. Craig R. Anderson (Police-Civilian/Teamster), 14 years, 3 months of service credits, age 58, effective July 7, 2016. Brian L. Kelley (Police-Civilian/Teamster 243), 17 years, 8 months of service credits, age 50, effective July 7, 2016. (Employee has 11 years, 7 months of prior service and purchase of 5 years of service credits) Virginia Crump (Public Service/UAW), 24 years, 5 months of service credits, age 58, effective July 13, 2016. Adopted by the following vote: 6 - 0 Karen Williams reported that Applicant #2016-E0317 has seen the Medical Director and the Disability Subcommittee was waiting from the medical report. There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Trustee Mark Parker gave his oral report for his attendance at the MAPERS Spring Conference. He discussed the actuary workshop that discussed the move toward closed amortization periods of 10 -20 years. Trustee Parker also spoke with Invesco regarding global policy. Trustee Dedic provided his oral report for his attendance at NCPERS Annual Conference. He discussed the workshop that detailed Brexit, and session on fuel and gas and political projects. Trustee Dedic discussed workshops that detailed bonds in down markets for unfunded liability. He reviewed a case study of Oklahoma pension system. Attorney Ken Lane provided a MAPERS legislative update of HB 5438 that would provide a definition of base pay that would not include items such as vacation, overtime to improve their Final Average Compensation; HB 4199 that would eliminate severance pay for employees that voluntary quits; SB 892 that would modify PA 314 to broaden the definition of private equity to include intrastate securities; and SB 275 that would affect public school employees and would not allow union leave to be eligible to count for service credit. Employees Retirement System Regular Meeting of June 16, 2016 Page 3 Trustee Dennis Parker reported that he attended the MAPERS workshops that discussed technology, investing, fuel, distribution of natural resources, vacant infrastructure, and a case study on Nike stock and Footlocker. Trustee Riley discussed her MAPERS Conference attendance. She attended the new trustee session and the senior housing investment workshop. Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office. Attorney Lane distributed the frequently asked questions. He has updated the multipliers and requested Board review for additional amendments. Karen E. Williams reported that the Retirement System received a Northern Trust Securities Lending Settlement in the amount of $23,218.40. Karen E. Williams provided a Retirement Board Trustee Election update. The Retirement Office has received one nomination. Past practice and policy indicates that if there is only one nomination, that nominee is confirmed by the Retirement Board. Karen E. Williams requested dates for the due diligence visit to Asset Consulting Group in the fall. Attorney Lane indicated that the IRS code is being reviewed and may be amended to provide a safe harbor for retirees as contract employees. The safe harbors would include the following retirees: Age 60 with five years of service Age 55 with 10 year of service Age + service that equal 80 or more Any age and 25 years of service. Trustee Mark Parker requested the retiree contracts to review the numbers of member affected. Trustee Riley indicated that she would check with the Office of the City Attorney regarding the release of the contract information to the Employees Retirement System Board. Trustee Wood requested that Attorney Ken Lane contact the Office of the City Attorney and find out what needs to be done for the Board to receive and review the contracts. Karen Williams provided the Monthly Investment Report and Securities Lending report for the month of May 2016. Trustee Wood inquired where the money from the Northern Trust Settlement would be deposited. Karen Williams indicated that checks that are received by the Retirement System are generally deposited in the Comerica account. It was moved by Trustee Kraus and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:11 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 21, 20'1'6 0 Thursday, 00 gym. City Council Conference Room cn cn 10th Floor, City Hall r'-'-, M Lansing, MI C--) N r7l The Board met in regular session and was called to order at 8:35 a.m. C—, 01 Present: Dedic, Good, Kraus, D. Parker, M. Parker, Wood. —6 r- o Absent: Trustee Bernero, Munroe, Riley Others: Angela Bennett, Karen E. Williams, Finance ::�,_ Department; Attorney Kenneth CO Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Mark Parker and supported by Trustee Good to approve the Official Minutes of the Employees' Retirement System Board Meeting of June 16, 2016. 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: 326. Total deferred: 71. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of June 2016, amounted to $1,904,654.65. Total retirement checks printed for the ERS System: 914. Total Retirement checks printed for both systems: 1645. 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 take item seven (7) out of order. Adopted by the following vote: 6 — 0. The Board moved to Request for Duty Disability. Karen Williams reported that Applicant #2016 — E0317 submitted a letter requesting to withdraw the application from duty disability after seeing the medical director. The applicant had reached the age of 58 and wanted to retire. Ms. Williams indicated that the Employees Retirement System Board does not have a formal policy for withdrawal, so she contacted the Board chair and legal counsel for direction. Employees Retirement System Regular Meeting of July 21, 2016 Page 2 Attorney Ken Lane opined that although the Employees Retirement System Board does not have a formal policy, a member can withdraw an application until a decision has voted upon the request. It was moved by Trustee Wood and supported by Trustee M. Parker to approve the withdrawal of Applicant #2016 —E0317 request for duty disability. Adopted by the following vote: 6 — 0. Attorney Lane recommended that ERS Board have a disability withdrawal policy drafted similar to the Police and Fire Retirement System policy. Karen Williams reported that Applicant #2016 —E0721 has submitted a letter of request for duty disability retirement. Trustee Dennis Parker referred the item to the disability subcommittee. The Employees Retirement System Board recessed to all the disability subcommittee to meet. The Board recessed at 8:37 a.m. The Board resumed at 8:40 a.m. It was moved by Trustee Good and supported by Trustee Mark Parker to refer Applicant #2016-E0721 to the medical director for evaluation. Adopted by the following vote: 6 — 0. It was moved by Trustee Dedic and supported by Trustee Mark Parker to approve the following requests for Regular Age and Service retirements: Steven James (Public Service/UAW), 16 years, 6 months of service credits, age 58, effective June 28, 2016. John McAllister (Planning/Teamster), 12 years, 9 months of service credits, age 66, effective August 14, 2016. Adopted by the following vote: 6 - 0 There were no requests for Non -Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. Employees Retirement System Regular Meeting of July 21, 2016 Page 3 Karen Williams reported that Trustee Munroe contacted the Retirement Office and chair to request an excuse for the meeting due to an appointment. It was moved by Trustee Kraus and supported by Trustee Wood to excuse Trustee Munroe from the Employees Retirement System July meeting. Adopted by the following vote: 6 — 0 Karen Williams distributed the agenda and registration materials for the MAPERS Fall Conference, September 17 — September 20, 2016. Attorney Ken Lane reported that the Retirement Ordinance is under review with the City Attorney's Office. Attorney Lane informed Human Resources and the City Attorney's Office that the Retirement Ordinance regarding the 90 —day requirement after City Council ratifies collective bargaining agreements. Karen E. Williams distributed a report regarding the Retirement Board Trustee Election. The deadline for turning in nominating petitions for term of office as Trustee of the Employees Retirement System Board was Thursday, June 16, 2016. One petition was received from Mr. Mark Parker, and has been certified by the Secretary of the Board. Since there was only 1 candidate for the position, it was not necessary to conduct a Primary or General election in accordance with the Employees Retirement System Board Election rules. Mr. Mark Parker filed a valid petition and ran unopposed. He was declared the winner for the office of Employees Retirement Board Trustee, with his term expiring June 30, 2020. It was moved by Trustee Wood and supported by Trustee Kraus to approve and confirm Mr. Mark Parker to the office of Employees Retirement System Board Trustee, with a term that expires June 30, 2020. Adopted by the following vote: 6 -0. Angela Bennett reported that council staff requested that she bring to the Police and Fire Retirement Board an outstanding amount on a Boomershine bill. Ms. Bennett did not believe that the outstanding amount of $1710 was a retirement board expense. Trustee Wood explained that the Boards discussed the importance of having Boomershine present to the council. Trustee Wood indicated that the City Council did pay for the actuary's travel expenses. Trustee Wood indicated that the preparation and materials were the same that was provided to Retirement Board. Trustee Good expressed concern that future presentations should be coordinated and the amount determined in advance. It was moved by Trustee Wood and supported by Trustee Good to pay the costs of the outstanding bill from the Police and Fire Retirement System and split the costs with the Employees Retirement System. Adopted by the following vote: 6 - 0 Karen E. Williams distributed recommendation from Asset Consulting Group for $6 million dollars quarterly cash flow needs by redeeming 3 million dollars from Northern Trust S & P Index portfolio and redeem $3 million from the TRowe Price portfolio. It was moved by Trustee Mark Parker and supported by Trustee Wood to redeem $3,000,000 from the Northern Trust S & P 500 index, and $3,000,000 from the T. Rowe Price fund for quarterly cash flow needs. Adopted by the following vote: 6 -0 Karen Williams indicated that Asset Consulting Group Due Diligence could be held September 26-27. The Employees Retirement System Board requested additional dates October 3 -4 for consideration to accommodate more members. Trustee Kraus recommended sending an email and polling the members to see who could attend the September dates. The ERS Board discussed obtaining employee contracts for retirees who have returned to work for the City. The Board requested to review the individual contracts. Human Resources indicated that there was some concern regarding the release of the information and was checking with the City Attorney's Office. Attorney Lane stated that some information may need to be redacted before Board review. The contracts are being reviewed to make sure it complies with the current IRS guidelines. Attorney Lane indicated that the IRS code is still being reviewed and may be amended to provide a safe harbor for retirees as contract employees. Karen Williams provided the Monthly Investment Report for the month of June 2016. It was moved by Trustee Good and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:11 a.m. Minutes approved on Angela Bennett, Secretary Employees Retirement System Dennis R. Parker, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD Q.F TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM N Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI October 20,c-201,% Thursday, Q0 �-4n, The Board met in regular session and was called to order at 8:38 a.m. Present: Dedic (8:51), Good, Kraus, Munroe, D. Parker, M. Parker, Wood. -7 Absent: Trustee Bernero, Riley. r"T�( cn F -Ti Others: Karen E. Williams, Angela Bennett, Finance Department; Greg Stump, Boomershine Consulting Group; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Kraus and supported by Trustee Good to approve the Official Minutes of the Employees' Retirement System Board Meeting of September 15, 2016. Adopted by the following vote: 6 - 0 There were no public comments. 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 331. Total deferred: 72. 7 death(s), Cheryl Hill, (retired 6/30/2010 — Public Service (UAW)), died 8/13/2016, no beneficiary; Albert L. Kirschenbauer, (retired 1/17/1990 — District Court (Exempt)), died 9/5/2016, no beneficiary; Philip H Dorland, (retired 11/15/2002 — Parks (Non Bargaining)), died 9/12/2016, no beneficiary; Jesse Dunning, (retired 6/24/2011 — Public Service (UAW)), died 9/7/2016, beneficiary to receive 50%; Eloise Taylor, (retired 6/30/1992 — Human Resources (T580CTP)), died 9/22/2016, no beneficiary; Robert J Savage, (retired 12/15/1988 — Administrative Service), died 6/28/2016, no beneficiary; Bernice M Green, died 9/30/2016, age 93, spouse of Non Bargaining retiree. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of September 2016, amounted to $1,905,753.68. Total retirement checks printed for the ERS System: 912. Total Retirement checks printed for both systems: 1643. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Wood inquired about how the death check was working. Employees' Retirement System Regular Meeting of October 20, 2016 Page 2 Karen Williams responded that death check is utilized as a backup. Death reports generally show up on death check approximately 1 -2 months after the death. Most members death are reported by family. It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the following request for regular age and service retirements: Ruby Jessie (Public Service/UAW), 25 years of service credits, age 56, effective November 15, 2016. Adopted by the following vote: 6 — 0. Karen Williams reported that Applicant #2016-E0721 request for duty disability retirement is listed as pending. The Retirement Office has scheduled an appointment for the applicant with the medical director. Karen Williams reported that Applicant #2016-E0915 for Non -Duty disability retirement is listed as pending. The Retirement Office is waiting for requested medical release and documents. Karen Williams reported that Ms. Latasha Johnson, Police (Civilian), Teamster 243 requested a refund of accumulated contribution of $1,647.11. Ms. Johnson was not vested. It was moved ' by Trustee Wood and supported by Trustee Munroe to approve the following request for refund of accumulated contribution: Latasha Johnson, Police (Civilian) T243, Not Vested, $1,647.11 Adopted by the following vote: 6 - 0. Ms. Williams indicated that Trustee Riley contacted the Retirement Office and would not be able to attend the October meeting. It was moved by Trustee Good and supported by Trustee Mark Parker to excuse Trustee Dedic from the October Employees' Retirement System meeting. Adopted by the following vote: 6 — 0. Trustee Mark Parker provided his MAPERS Fall Conference Report. Mr. Parked attended seminars that included Defined Contribution Plan. Mr. Parker discussed fee reduction options for Defined Contribution Plans. Mr. Parker stated that the workshop for bonds was one of the conference's best sessions. Overall, he felt it was a good conference. Attorney Ken Lane reported that he attended the MAPERS Fall Conference Legislative Breakfast. He discussed HB 5438 regarding base pay definition. The house bill has not made any movement within the Michigan House. Employees Retirement System Regular Meeting of October 20, 2016 Page 3 The MAPERS lobbyist expressed concerned for a proposed forty bill package that would impact defined benefit plans. The pension reform package has not been introduced at this time. Trustee Dennis Parker discussed the proposed forty -bill package that would terminate defined benefit plans and tie, the closures to revenue sharing. Trustee Dennis Parker discussed his attendance at MAPERS Fall Conference. He attended the actuary presentation that reviewed cash flow, funding ratios and funding level. Trustee Dennis Parker also expressed his concern at the conference regarding the location and cost of the MAPERS Fall Conference on Mackinac Island. Trustee Mark Parker discussed the ACG Due Diligence Visit. Trustee Mark Parker reviewed the termination of Private Advisors recommended by Asset Consulting Group. Trustee Parker noted that the head of research had left Private Advisors. Trustee Parker also discussed possible absolute return fixed income scenarios and the direct access hedge fund as a consideration for the boards. Trustee Parker distributed information from Asset Consulting Group comparing hedge fund of funds versus the direct access fund. Trustee Good reviewed the ACG Due Diligence visit and felt it was informative. Trustee Kraus provided a report regarding her attendance at the ACG Due Diligence Visit. Trustee Kraus reported that Asset Consulting Group has made changes to the direct access investment strategy. She noted that she is open to having a discussion regarding ACG handling the private equity investment. Trustee Wood has concerns about a conflict of interest that may arise by having ACG manage the Board's private equity investment. Trustee Dennis Parker reviewed the commodities discussion held at the ACG due diligence visit. Karen Williams reported that IFEBP Conference was scheduled for November and requested members who wished to attend to contact the Retirement Office. Karen Williams requested direction from the Retirement Board regarding the Joint Meeting Managers. ACG noted that PRISSA II, Integrity, Wells Fargo and the private equity investment and absolute return fixed strategy discussion. The Employees Retirement System Board agreed to have PRISSA II postponed until the February Joint Meeting. Employees Retirement System Regular Meeting of October 20, 2016 Page 4 Attorney Lane reported that the Employees Retirement System Ordinance is still being reviewed and updated by Human Resources. Attorney Lane distributed the amended Frequently Asked Questions documents for Board review. He added information regarding the retirement calculator. Attorney Lane noted that at the last meeting, a member requested to withdraw his duty disability application. The Board requested legal counsel to draft a policy for Board review and action. Attorney Lane distributed and explained the disability application withdrawal policy for Employees' Retirement System Board. It was moved by Trustee Wood and supported by Trustee Good to approve the Disability application withdrawal process for the Employees' Retirement System Board. Adopted by the following vote: 6-0 The SAS 70/Custody and Fund Services SOC 1 Report was distributed for Board review. Attorney Ken Lane noted that he would review the security measures and report back the Police and Fire Retirement Board. Karen Williams distributed a recommendation from Asset Consulting Group regarding the termination of Private Advisors It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the recommendation from Asset Consulting Group to terminate Private Advisors. Adopted by the following vote: 7 -0. Attorney Lane discussed the letter from Steve Harry requesting a summary annual report. Attorney Lane indicated that the actuarial report, the annual budget and the year-end investment report comprised the necessary reporting required by Public Act 314 and the Employees' Retirement Board Policy. Trustee Wood indicated the information was difficult to find and she suggested working with the Information Technology department to make the items easier to find. Mr. Greg Stump, Boomershine Consulting Group, presented the Employees' Retirement System actuarial valuation for the period ending 12/31/2015. Mr. Stump provided a review and a schedule for approval of the valuation and assumption changes. He discussed the funding background, plan participants for retirees and active employees. Mr. Stump discussed the actuarial liability, market and smoothed assets and rations. He detailed the city contribution, and described investment decease and demographic gains. Mr. Stump provided an overview of the actuarial process and discussed the Experience Study. He reviewed the inflation outlook, investment return and salaries assumption and also discussed retirements, termination, disabilities and mortality. Mr. Stump provided a summary of recommendations for the economic and demographic assumptions. He explained the impact of the recommendations and provided a cash flow, funding, and contribution future outlook. Trustee Riley updated that Employees' Retirement System Board that her office is working with City Attorney's Office regarding redacting information was needed. Karen Williams distributed Asset Consulting Group recommendation for the Employees Retirement System Board Quarterly Cash Flow. ACG recommended redeeming $1.5 million from MD SASS, $2 million from Western Asset Management & $1.5 million form William Blair. It was moved by Trustee Good and supported by Trustee Wood to approve the Asset Consulting Group recommendation to redeem $5 million for the Employees' Retirement System Board quarterly cash flow. Adopted by the following vote 7 — 0. Karen Williams provided the Investment Report and Securities Lending Report for the month of August 2016. It was moved by Trustee Wood and supported by Trustee Dedic to adjourn the meeting. Adopted by the following vote: 7—.0. The meeting adjourned at 10:12 a.m. Minutes approved on Angela Bennett, Secretary Employees Retirement System Dennis R. 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 10, 2016 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:37 a.m. Present: Dedic, Good, Kraus (8:38), Munroe, D. Parker, M. Parker, Wood. —7 Absent: Trustee Bernero, Riley. Others: Karen E. Williams, Finance Department; Trustee Robert Rose, Police and Fire Retirement System Board; Attorney Kenneth 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 Meeting of October 20, 2016. Adopted by the following vote: 6 - 0 It was moved by Trustee Wood and supported by Trustee Mark Parker to take up all voting items on the agenda, out of order. Adopted by the following vote: 6- 0 Karen Williams indicated that the Employees' Retirement System Board maintains memberships with several professional organizations. The respective dues for 2017 are MAPERS, $100; NCPERS, $250; IFEBP, $497.50 and are paid with administrative funds. It was moved by Trustee Mark Parker and supported by Trustee Munroe to approve the payment of Employees' Retirement System Board membership fees for MAPERS, NCPERS and IFEBP for 2017. Adopted by the following vote: 6-0. Karen Williams distributed the actuarial valuation for the period ending 12/31/2015 for Board acceptance. Trustee Wood explained that Mr. Greg Stump reviewed the actuarial valuation at the October meeting. Trustee Wood indicated that the experience study would be available for review at the next meeting. She recommended acceptance of the Board report. Employees' Retirement System Regular Meeting of November 10, 2016 Page 2 It was moved by Trustee Wood and supported by Trustee Good to accept the actuarial valuation for the period ending 12/31/2015. Adopted by the following vote: 7 — 0. Trustee Dedic left the meeting. There were no public comments. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 335. Total deferred: 72. 1 death(s), Steven G Chapela, died 10/8/2016, age 89, spouse of District Court retiree. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of October 2016, amounted to $1,894,787.13. Total retirement checks printed for the ERS System: 907. Total Retirement checks printed for both systems: 1637. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no requests for regular age and service retirements. Karen Williams reported that Applicant #2016-E0721 request for duty disability retirement is listed as pending. The Medical Director has seen the applicant and requested direction regarding the report provided to the Board. Dr. Roth asked the Retirement Office if the medical director was responsible for making the determination of duty or non -duty disability. Ms. Williams indicated that she contacted legal counsel and received a copy of the legal memorandum indicating the Medical Director responsibilities. The legal opinion reviewed that the Medical Director was responsible for determining if the applicant is disabled or not. It was the Employees Retirement System Board's decision to determine if the disability was duty related or non -duty related. The memo was provided to Dr. Roth. Attorney Ken Lane opined that under the Retirement Ordinance, the Board has the final determination if a disability is duty related. In the past the Medical Director has provided his opinion if the disability was duty related or non -duty, and the Retirement Board can rely on the opinion if provided. Trustee Dennis Parker clarified that he was aware of the issue. The problem arose because the City denied the applicant's worker's compensation initially. The issue would be settled within the next few weeks. Karen Williams reported that Applicant #2016-E0915 for Non -Duty disability retirement is listed as pending. The Retirement Office is waiting for requested medical release and documents. Employees' Retirement System Regular Meeting of November 10, 2016 Page 3 Trustee Wood mentioned that the Police and Fire Retirement Board were planning to review the medical director Request for Proposal. Trustee Wood recommended that the medical director be reviewed in accordance with the Employees' Retirement System Board policy. Trustee Wood requested a report on all ERS Board vendors. Attorney Lane clarified that the ERS Policy indicates that all vendors should be evaluated every five years. Attorney Lane indicated that the investment managers do come in periodically for performance reports. There were no requests for refunds of accumulated contributions. Ms. Williams indicated that Trustee Riley contacted the Retirement Office and would not be able to attend the November meeting. Attorney Lane reported that the Employees' Retirement System Ordinance is still being reviewed and updated by Human Resources. Attorney Lane distributed the amended Frequently Asked Questions documents for Board review. Attorney Lane also discussed updating election policy prior to the next election in June. Attorney Lane reviewed the SAS 70/Custody and Fund Services SOC 1 Report that was distributed for Board review. He opined that there are no substantive changes in the report. The Report reviews the security procedures taken to protect assets. The Employees' Retirement Board requested that the report be provided to the Information Technology director for review. The Board also requested that the IT Director be invited to the next board meeting to discuss cyber security. Ms. Williams reported that the Retirement Board webpage has been updated to make it more user-friendly, so the public could find agendas, minutes and Board documents. Ms. Williams distributed the 2017 Schedule of Board meetings. Attorney Ken Lane indicated that employee contracts have been redacted and should be available at the December meeting for review. Karen Williams reported that she contacted Gabriel, Roeder, Smith regarding providing a link to Minute Manager and a process to approve users for archived minutes. Gabriel, Roeder, Smith explained that the process to approve and maintain users would be detailed and costly. Karen Williams indicated that the Police and Fire System tasked Trustee Rose with contacting the City Clerk to provide options for reviewing and searching archived minutes. Trustee Rose explained that he had a preliminary conversation with the City Clerk's Office. The City Clerk's Office has future plans to coordinate archived minutes with the various departments and boards. Karen Williams provided the Quarterly Expense Report and Securities Lending Report for the month of October. It was moved by Trustee Mark Parker and supported by Trustee Munroe to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:10 a.m. Minutes approved on Dennis R. Parker, Vice Chairperson Employees' Retirement System Angela Bennett, Secretary Employees Retirement System CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM AGENDA Regular Meeting December 15, 2016 City Council Conference Room Thursday, 8:30 a.m. 10th Floor, City Hall Lansing, MI 1. Call to Order. 2. Roll Call - Trustees Bernero, Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Riley, Wood - 9 3. Reading of the Official Minutes of the Employees' Retirement System Board Meeting of November 10, 2016 4. Reading of the Official Minutes of the Joint Employees' Retirement System and Police and Fire Retirement System Board meeting of November 10, 2016 5. Public Comments for Items on the Agenda 6. Secretary's Report. 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 340. Total deferred: 72. 3 death(s), Katherine Lundberg, (retired 1/21/1985 - Public Service), died 11/1/2016, age 90, no beneficiary; Kristina L. Barncard, (retired 7/13/2001 — Police(Civilian), died 12/1/2016, age 64, beneficiary to receive 50%; Brian C. Sipperley (retired 1/19/2013 Public Service), died 12/1/2016, age 53, beneficiary to receive 100%. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of November 2016, amounted to $1,895,932.94. Total retirement checks printed for the ERS System: 906. Total Retirement checks printed for both systems: 1636. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. 7. Request for Regular Age & Service Retirement: Richard Dedic (Public Service/UAW), 27 years, 1 month of service credits, age 50, effective December 19, 2016 Roxanne Estell (Planning/Non Bargaining), 12 years, 1 month of service credits, age 66, effective January 14, 2017 8. Request for Duty Disability Retirement: Applicant #2016-E0721 (Pending) Regular Meeting City Council Conference Room 10th Floor City Hall Lansing, MI 9. Request for Non -Duty Disability Retirement: Applicant #2016-170915 (Pending) 10. Request for Refund of Accumulated Contribution: Daniel Hale, Teamster 243, vested, $36,033 11. Excusing of Board Members 12. Training and Education 13. Public Comments for items not on the Agenda 14. Other Business: December 15, 2016 Thursday, 8:30 a.m. Page 2 a. Ordinance/Board Policies/Updates—Attorney Ken Lane b. Experience Study c. SAS 70/ Custody and Fund Services SOC 1 Report/ Cyber Security d. Trustee Tablets e. Vendor Review f. 2016 ERS Pension Plan Contribution 15. Pending (items): a. Contract Employee request b. Board Minutes 16. Monthly Investment Report and Securities Lending Report