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HomeMy WebLinkAbout2017 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 19, 2017 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:39 a.m. Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Riley, (8:45), Wood. —8 Absent: Trustee Bernero 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 M. Parker and supported by Trustee Good to approve the Official Minutes of the Employees' Retirement System Board Meeting of December 15, 2016. Adopted by the following vote: 7 - 0 It was moved by Trustee Good and supported by Trustee M. Parker to approve the Official Joint Minutes of the Employees' Retirement System Board and the Police and Fire Retirement System Board Meeting of December 15, 2016. Adopted by the following vote: 7- 0 8 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 1 retired. Total active membership: 348. Total deferred: 71. 0 death(s). Refunds made since the last regular meeting amounted to $36,033.00. Retirement allowances paid for the month of December 2016, amounted to $1,935,802.86. 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. It was moved by Trustee Wood and supported by Trustee Good to approve the following requests for Regular Age and Service Retirement: Tyler Houser (Public Service/UAW), 26 years, 7 months of service credits, age 50, effective January 17, 2017 Employees' Retirement System Regular Meeting of January 19, 2017 Page 2 It was moved by Trustee Wood and supported by Trustee Good to approve the following requests for Regular Age and Service Retirement (cont.): Richard Schaefer (Parks/Teamster 243 CTP), 25 years, 6 month of service credits, age 70, effective January 18, 2017 Adopted by the following vote: 7 — 0 Karen Williams reported that the Retirement Office received a resubmission request for duty disability for applicant #2017-E0119, and a non -duty request for applicant #2017-E0119. The requests for duty disability and non -duty disability for applicant #2107-E0119 were referred to the disability subcommittee. Karen Williams reported that the Retirement Office received the medical report for applicant #2016-E0915 and it was referred to the disability committee for review. It was moved by Trustee Good and supported by Trustee Wood to recess the ERS Board meeting to allow the disability subcommittee to meet. Adopted by the following vote: 7 -0 The Board recessed at 8:45 a.m. The Board resumed at 8:50 a.m. It was moved by Trustee Good and supported by Trustee Wood to approve the request for non -duty disability for applicant #2016-E0915. Adopted by the following vote: 8 — 0. It was moved by Trustee Good and supported by Trustee Wood to refer applicant #2017-E0119 to the medical director for disability evaluation. Adopted by the following vote: 8 — 0. There were no requests for Refunds of Accumulated Contributions. Trustee Mark Parker inquired about Board interest in planning a Retirement Conference. Trustee Dennis Parker requested that the item be placed on the February Joint Meeting Agenda. Attorney Lane reported that the Employees' Retirement System Ordinance is still being reviewed and updated by the City Attorney's Office. Attorney Lane discussed the update for the Frequently Asked Questions document. He requested that members review the document and report what changes need to be made. Employees' Retirement System Regular Meeting of January 19, 2017 Page 3 Attorney Lane Distributed an updated Investment Policy that was approved at the December Joint Meeting. Attorney Lane distributed the proposed budget for 2017 for ERS Board review. Attorney Lane noted that he would update the 2016 expenditures once those amount became available. It was moved by Trustee Good and supported Trustee Dedic to approve the proposed budget for 2017 for ERS Board. Adopted by the following vote: 8 — 0. Attorney Lane recommended that the Employees' Retirement System re -adopt the travel and education policy. Each Trustee is allocated $4,000 for instate travel and $6,000 for out of state travel. It was moved by Trustee Good and supported by Trustee Mark Parker to adopt the Employees' Retirement System existing travel policy for 2017. Adopted by the following vote: 8 — 0. Attorney Lane discusses Public Act 530, an amendment of Public Act 314, that requires the annual report would be sent to the State Department of Treasury within thirty days after Board approval. The State Treasurer would post a summary report of the municipalities on the state website. Municipalities funded below 60% would require steps to be listed regarding what the pension board is doing to correct the funding level. Attorney Lane reported that Attorney Paul Novak had left Milberg. He plans to speak with Attorney Novak to discuss the Board's securities monitoring. Attorney Lane will report back to the Employees' Retirement System Board. Attorney Lane reported that he had reviewed the ABS contracts and that they were ready to be signed by the chairperson. Gregory Stump, Boomershine Consulting Group reviewed the Actuarial Experience Study for ERS Board. Mr. Stump reviewed the recommendations for changes to the economic assumptions, mortality assumption, and demographic assumptions. Mr. Stump recommended lowering the inflation and investment return rate to 7.25%. Attorney Lane indicated the Police and Fire Retirement Board had not made a decision. The Employees' Retirement System Board discussed lowering the investment return rate to 7.4% and its effect on the city contributions. Trustee Kraus inquired about waiting until the Joint Board meeting so both boards could discuss the proposed investment rate change and its effects on budgetary constraints. Trustee Dedic expressed concern about waiting. Employees' Retirement System Regular Meeting of January 19, 2017 Page 4 It was moved by Trustee Dedic and supported by Trustee Mark Parker to accept the actuarial experience study as recommended with an amendment to lower the investment rate to 7.4% Adopted the following vote: 8 — 0. Attorney Lane recommended that the SAS 70 Report be accepted contingent upon the Information Technology manager review. It was moved by Trustee Wood and supported by Trustee Mark Parker to approve the SAS70/Custody and Fund Services SOC 1 Report/Cyber Security contingent upon the Information Technology manager review. Adopted by the following vote: 8 — 0. Karen Williams reported that each January, the trustees elects its chair and vice chair and she distributed subcommittee assignments from the previous year. It was moved by Trustee Wood and supported by Trustee Munroe to maintain current leadership, Dennis R. Parker, Chair, and Mark Parker, Vice chair. Adopted by the following vote: 8 — 0. The Retirement Office scanned redacted copies of the contract employees who have retired for City of Lansing Employees' Retirement System Board review. The Board had requested the contracts to ensure that they are in compliance with the IRS requirements for retirees. Attorney Lane reported that the City Attorney's Office will be drafting a memo, listing what steps are being taken. Attorney Lane noted that there have been no changed in the IRS code. Trustee Kraus inquired about how to make concerns about certain contract actionable. Attorney Lane indicated those concerns should be reported to the City Attorney's Office. Trustee Wood inquired if the Retirement Ordinance can be amended to set a certain amount of time a person be retired, before he or she could be hired as a contract employee by the City. Attorney Lane indicated that such changes to the Retirement Ordinance may need to be collectively bargaining. Trustee Dedic inquired about the circumstances that would cause a retiree to have his or her pension suspended, when returning to work for the City of Lansing. Attorney Lane explained that retirees who come back in full time positions would have their pension suspended. Attorney Lane stated that the current regulations include provisions that the retirees cannot come back into their same position with the same duties. The ERS Ordinance does not allow in-service distributions. Karen Williams reported that the Retirement Office was requested to research electronic tablets for Trustee use. The tablet would have minutes, reports, and retirement data downloaded to it, due to the large volume of paper and reports needed by the Employees' Retirement Board. Trustee Kraus discussed having the ability to reference policy and other information electronically. The electronic format would allow uniform updates and access to materials that are on the R:Drive that cannot be accessed by all Trustees. The ERS Board requested that the Retirement Office contact the Information Technology Manager to come to a meeting to discuss the electronic format with tablets. Ms. Williams distributed a report that provided the dates of the Employees' Retirement System Board vendor's last review by the Board. Legal Counsel will review the list. Karen Williams reviewed the monthly investment report and the securities lending report for the month of December 2016. It was moved by Trustee Wood and supported by Trustee Munroe to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:58 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 February 23, 2017 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 8:37a.m. Present: Dedic, Good, Houghton, Kraus, D. Parker, M. Parker, Riley. —7 Absent: Trustee Bernero, Munroe Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Dedic and supported by Trustee Good to approve the Official Minutes of the Employees' Retirement System Board Meeting of January 19, 2017. Adopted by the following vote: 7 - 0 6 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 354. Total deferred: 71. 5 death(s) Barbara Holliday, (retired 1/20/1995 — Police (FOP 911)), died 1/26/2017, age 74, no beneficiary; Ronald Herring, (retired 1/4/1993 — Finance (T580 CTP)), died 1/31/2017, age 86, no beneficiary; George Swanson (retired 8/25/1988 — Public Service (NonBargaining), died 1/26/2017, age 87, beneficiary to receive 100%; Emil Winnicker, (retired 11/22/2003 — Planning (Exempt)), died 1/15/2017, age 67, beneficiary to receive 50%; Arnold Yerxa, (retired 6/15/2013 — City Council Staff), died 1/27/2017, age 67 beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of January 2017, amounted to $1,912,731.55. Total retirement checks printed for the ERS System: 908. Total Retirement checks printed for both systems: 1640. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee Houghton requested an explanation of Eligible Domestic Relations Orders. Karen Williams explained that EDROs separate pension benefits from divorce proceedings There were no requests for Regular Age and Service retirements. Karen Williams reported that the Medical Director is reviewing the additional documents submitted by Applicant #2017-E0119 regarding the requests for duty disability and non -duty disability retirement. A report should be completed by the next meeting. Employees, Retirement System Regular Meeting of February 23, 2017 Page 2 It was moved by Trustee Kraus and supported by Trustee Dedic to approve the following request: Lana Hadzajlic-Liskiewicz, Police Department (Civilian), Not Vested, $4,963.96 Janene McIntyre, Law/Human Resources, vested, $41,725.93 Adopted by the following vote: 7 — 0 Karen Williams reported that the Retirement Office received notification from Trustee Munroe that she would not be able to come to the meeting due to a work obligation. She requested to be excused. It was moved by Trustee Good and supported by Trustee Kraus to excuse Trustee Munroe from the February meeting. Adopted by the following vote: 7 — 0. Karen Williams reported that there was a MAPERS One Day Conference scheduled for March. She requested that members who wished to attend the Conference to contact the Retirement Office. There are no public comments. Attorney Ken Lane updated the Board that the Retirement Ordinance is under review in the City Attorney's Office. Attorney Ken Lane distributed a memo regarding an employee who requested to purchase service credits after he was retired. Mr. Schaefer's retirement had been approved by the Board prior to his request. Attorney Lane opined that the request and paperwork to purchase service credits must be done prior to retirement, when the employee is still a member of the system. Attorney Lane contacted Mr. Schaefer and shared the information from the memo. Attorney Lane requested Board direction regarding a policy to outline purchase of service credits. Trustee Mark Parker indicated that the Retirement Ordinance language could be misinterpreted and requested that a policy be created. Attorney Lane distributed an amended vendor review policy that expands who is covered by the policy. It was moved by Trustee Kraus and supported by Trustee Good to approve the Employees Retirement System Board of Trustees Vendor Review Policy. Adopted by the following vote: 7 - 0 Employees' Retirement System Regular Meeting of February 23, 2017 Page 3 Attorney Ken Lane indicated that the Information Technology manager was invited to the March meeting to discuss the SAS 70 report, review security issues and answer questions. Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. There were no official guidelines posted for submitting reports yet. Attorney Lane discussed that NCPERS recommended that each Retirement Board adopt an ethic policy for its investment managers to sign. Attorney Lane will bring the proposed policy to the next month meeting to review. Ms. Angela Bennett recommended matching the inflation rate with the Board's rate of the return of 7.4%. The new inflation rate would be 2.925%. It was moved by Trustee Mark Parker and supported by Trustee Dedic to lower the inflation rate to 2.925% to match the Board's rate of return at 7.4% Adopted by the following vote: 7 — 0. The following subcommittee assignments were approved for 2017: Disability: D. Parker, Good, Riley Investment: D. Parker, Good, Houghton, Kraus, M. Parker Education: M. Parker, Munroe, Dedic Special Projects: Houghton, Kraus, M. Parker Attorney Lane reported that the City Attorney's Office was working on a report regarding their review of contract employees who have retired from the City of Lansing for Employees' Retirement System Board. The Board had requested the contracts be reviewed to ensure that they are in compliance with the IRS requirements for retirees. Trustee Kraus requested that the ERS Board see the report and inquired if there was a review procedure in place for retirees who return as contract employees. Trustee Riley indicated that the City Attorney's Office will now review any retiree contract with the City of Lansing. Trustee Kraus inquired about what would be done if a retiree contract is found to be out of compliance. Trustee Riley indicated that Human Resources would discuss the contract with the City's Attorney Office regarding available options. Employees' Retirement System Regular Meeting of February 23, 2017 Page 4 Trustee Dennis Parker inquired if the Employees Retirement System had done everything available to comply with the IRS requirements. Attorney Lane explained that the ERS Board was proactive with its inquiry regarding contract employees who are retirees. The Retirement Board notified the City who has been reviewing the issues brought by Trustees to ensure compliance. Karen Williams reported that GRS sent a proposed fee of $3,300 to update the minute master service. Trustee M. Parker inquired if the City administration was putting a system in place for electronic archived minutes. Trustee Parker recommended that the ERS System coordinate with the Police and Fire Retirement System to determine regarding continuing with the Minute Master product. Karen Williams reported that the Retirement Office was requested to research electronic tablets for Trustee use. The tablet would have minutes, reports, and retirement data downloaded to it, due to the large volume of paper and reports needed by the Employees' Retirement Board. Trustee Kraus requested that the Retirement Office contact the Chief Information Officer to determine if a secured site or portal could be established on the City website for trustees to access retirement data. Ms. Williams distributed a report that provided the dates of the Employees' Retirement System Board vendors' last review by the Board. Attorney Lane stated the Employees' Retirement System policy states that the vendors should be reviewed every five years, but does not require that a request for proposals. Angela Bennett reported that she had received an email regarding Tegrit in the Police and Fire meeting regarding lay-offs. She and the Retirement Office did a web search and had not heard anything regarding problems. Ms. Bennett indicated that Police and Fire Retirement Board had plans for a due diligence meeting and a future onsite visit. The Retirement Board requested a joint meeting with the Police and Fire Retirement Board that the CEO and Pension Administration director could attend to discuss changes within the company. Karen Williams reviewed the Quarterly Expenses Report for the 4th quarter of 2016 and the Securities Lending Report for the month of January. It was moved by Trustee Mark Parker and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:29 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 March 23, 2017 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:37a.m. Present: Dedic, Good, Houghton, Munroe, D. Parker, M. Parker, Riley. —7 Absent: Trustee Bernero, Kraus Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Good and supported by Trustee M. Parker to approve the Official Minutes of the Employees' Retirement System Board Meeting of February 23, 2017. Adopted by the following vote: 7 — 0 It was moved by Trustee Good and supported by Trustee Mark Parker to approve the Official Minutes of the Joint Police and Fire Retirement System Board and the Employees' Retirement System Board meeting of February 21, 2017. Adopted by the following vote: 7 - 0 Secretary's Report: 7 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 361. Total deferred: 71. 2 death(s) David Phelps, (retired 7/1/2010 — UAW, died 2/26/2017, age 61, beneficiary to receive 100%; Jane Rouse, died 3/6/2017, age 92, spouse of Nonbargaining retiree. Refunds made since the last regular meeting amounted to $46,689.89. Retirement allowances paid for the month of February 2017, amounted to $1,906,013.28. Total retirement checks printed for the ERS System: 906. Total Retirement checks printed for both systems: 1638. 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 the medical report for applicant #2017-E0119 had been received and submitted to the disability subcommittee. The disability subcommittee met to review the medical report and the applicant's documentation. Employees' Retirement System Regular Meeting of March 23, 2017 Page 2 It was moved by Trustee Good and supported by Trustee Mark Parker to deny the request for Non -Duty Disability retirement for applicant #2017-E0119 in accordance with the medical report. Adopted by the following vote: 7 — 0 It was moved by Trustee Good and supported by Trustee Mark Parker to approve the request for Duty Disability retirement for applicant #2017-E0119 in accordance with the medical report. Adopted by the following vote: 7 — 0. Karen Williams reported that the Retirement Office received notification from Trustee Kraus that she would not be able to come to the meeting. She requested to be excused. It was moved by Trustee Good and supported by Trustee Munroe to excuse Trustee Kraus from the March meeting. Adopted by the following vote: 7 — 0. Trustee Dedic provided a report on his attendance to the MAPERS One Day Conference scheduled for March. Trustee Dedic attended workshops that detailed asset allocation, ethics in the financial markets, and importance in lobbying state representatives regarding retirement concerns. Karen Williams reported that MAPERS Annual Spring Conference is scheduled for May 20-23, 2017 in Acme, Michigan. Ms. Williams requested that members who were interested in attending to contact the Retirement Office. Ms. Williams provided a retirement conference update. The Lansing Center has been scheduled for Thursday, September 7. Ms. Williams discussed items on the proposed conference budget that included room rental, food and supplies. Trustee Houghton inquired if the retirement board have requested sponsors. Ms. Williams indicated that the retirement board had not requested sponsors in the past. Attorney Ken Lane stated that there should not be a problem with requested sponsors if the money went directly to the Lansing Center. Goods and services could be used only for the Conference. Employees' Retirement System Regular Meeting of March 23, 2017 Page 3 It was moved by Trustee Mark Parker and Trustee Dedic to allocated $12,500 from the Employees' Retirement System Board for the September retirement conference. Adopted by the following vote: 7 — 0. Attorney Ken Lane will amend the Employees' Retirement System Board budget to include the increased allocation for the conference. There are no public comments. Attorney Ken Lane updated the Board that the Retirement Ordinance is under review in the City Attorney's Office. Attorney Lane will review the documents from the MAPERS One -Day Conference regarding issues raised ethics in financial markets workshop the Trustee Dedic attended. Attorney Lane will review the Board's Code of Conduct policy to determine if issues raised from the workshop are covered. Attorney Lane distributed a revised Vendor policy. Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. There were no official guidelines posted for submitting reports yet. Attorney Ken Lane distributed a letter for vendors of the system indicating that vendors cannot make campaign contributions to any elected officials who could have influence over their hiring. Attorney Lane provided copies of the NCPERS ethics policy for investment advisors. Attorney Lane noted that investment managers would need to disclose contributions on Schedule A list of organizations. NCPERS provided questions and possible answers to vendors who refused to sign the document. Attorney Lane stated the Employees' Retirement System could review the document and decide at a future meeting if they would like to adopt the policy. Attorney Ken Lane reported that the Chief Information Officer has been invited to the next joint meeting to address the SAS Report, cybersecurity and answer questions regarding technology issues Attorney Ken Lane will draft a service credit purchase policy that will detail the process and timeframe for purchases. The document could be provided with forms required for purchase. Karen Williams described the process of how an employee would purchase service credits. Karen Williams reported that Asset Consulting Group provided a schedule of due diligence visits for the week of April 17, 2017. Asset Consulting Group recommended visits to Franklin Templeton, Wasatch and Western Asset. The Police and Fire Retirement Board requested that Asset Consulting Group recommend two visits rather than three. Asset Consulting Group recommended Franklin Templeton and Wasatch. The Employees' Retirement System discussed the dates and recommended having the due diligence at a later date. Trustee Dennis Parker will contact the Police and Fire Retirement Board to determine a date. Attorney Lane reported that the City Attorney's Office was working on a report regarding their review of contract employees who have retired from the City of Lansing for Employees' Retirement System Board. The Board has requested a copy of the report. Karen Williams reported that Police and Fire Retirement System requested information on the cost to just maintain the Minute Master Project, and not update it. Ms. Williams will contact Gabriel Roeder and Smith and obtain further information. Karen Williams reported that Retirement Office requested that the Chief Information Officer address trustee table or establishing a trustee portal on the City of Lansing Web Site at the next Joint Meeting. Attorney Lane reported that the Police and Fire Retirement System has requested that an RFP be drafted for the medical director. He will bring a copy of the RFP for the Employees Retirement System. Karen Williams reviewed the Investment Report and the Securities Lending Report for the month of February. It was moved by Trustee Dedic and supported by Trustee M. Parker to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:09 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 April 20, 2017 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:35 a.m. Present: Dedic, Good, Kraus, D. Parker, M. Parker —5 Absent: Trustee Bernero, Houghton, Munroe, Riley Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Mark Parker supported by Trustee Good to approve the Official Minutes of the Employees' Retirement System Board Meeting of March 14, 2017. Adopted by the following vote: 5 — 0 Secretary's Report: 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 366. Total deferred: 72. 3 death(s) Raymond Borghi, (retired 11/20/1992 — UAW, died 2/16/2017, age 79, beneficiary to receive 50%; Shirley M. Ramsey, died 3/22/2017, age 91, spouse of Teamster 243 retiree; Barbara Haskell, died 3/26/2017, age 87, spouse of Non Bargaining retiree. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of March 2017, amounted to $1,906,013.28. Total retirement checks printed for the ERS System: 908. Total Retirement checks printed for both systems: 1642. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Good and supported by Trustee Dedic to approve the following request for Regular Age & Service Retirement: Donna Black (Human Resources/T580CTP), 13 years, 6 months of service credits, age 58, effective April 19, 2017 Adopted by the following vote: 5 - 0 There were no duty disability retirement requests. There were no non -duty disability retirement requests. Employees' Retirement System Regular Meeting of April 20, 2017 Page 2 Karen Williams reported that the Retirement Office received notification from Trustee Hougton, Monroe and Riley stated that they would not be able to come to the meeting. The trustees requested to be excused from the March meeting. It was moved by Trustee Good and supported by Trustee Dedic to excuse Trustee Houghton, Trustee Munroe and Trustee Riley from the March meeting. Adopted by the following vote: 5 — 0. Karen Williams reported that MAPERS Annual Spring Conference is scheduled for May 20-23, 2017 in Acme, Michigan. Ms. Williams requested that members who were interested in attending to contact the Retirement Office. Trustee Mark Parker provided a retirement conference update. The Lansing Center has been scheduled for Thursday, September 7. Trustee Parker requested that Board trustees request that time off for that date. Mr. George Tarlas of Asset Consulting Group has been asked to be the keynote speaker. There are no public comments. Attorney Ken Lane updated the Board that the Retirement Ordinance is under review in the City Attorney's Office. Attorney Lane distributed an amended Employees' Retirement System Board budget with an increased allocation for the Retirement Board Conference. It was moved by Trustee Kraus and supported by Trustee Good to approve the amended budget for the Employees' Retirement System Board. . Adopted by the following vote: 5 — 0. Attorney Lane distributed a RFP for the medical director. Attorney Lane also included a question regarding a doctor's experience with a three -panel medical board. Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. There were no official guidelines posted for submitting reports yet. Attorney Lane will review the documents from the MAPERS One -Day Conference regarding issues raised ethics in financial markets workshop the Trustee Dedic attended. Attorney Lane will review the Board's Code of Conduct policy to determine if issues raised from the workshop are covered. Employees' Retirement System Regular Meeting of April 20, 2017 Page 3 Attorney Ken Lane will draft a service credit purchase policy that will detail the process and timeframe for purchases. The document could be provided with forms required for purchase. Attorney Lane distributed the Frequently Asked Question document for Board trustee review. Attorney Lane recommended that the members update the Employees Retirement System handbook at a future meeting. Karen Williams indicated that Trustee Dennis Parker's elected position expires June 30, 2017. Trustee Dennis Parker was completing the term of Trustee Robert Rose who retired in 2013. The posting regarding nominating petitions will be distributed May 2017, with elections in June. The new term will expire June 30, 2021. Attorney Lane reported that the City Attorney's Office was working on a report regarding their review of contract employees who have retired from the City of Lansing for Employees' Retirement System Board. The Board has requested a copy of the report. Karen Williams reported that she contacted Gabriel Roeder Smith and requested a price for maintenance only for the minute master service. Ms. Williams will have an update at the next meeting. Ms. Williams also reported that she will meet Trustee Rose to review the Minute Master service and discuss options. Karen Williams reported that Retirement Office requested that the Chief Information Officer address trustee table or establishing a trustee portal on the City of Lansing Web Site at the next Joint Meeting. Karen Williams distributed a list of Board vendors and the last time the Board reviewed each manager. Attorney Lane indicated that the Employees Retirement Board was in compliance in its review of investment manager. The Board has also began a review of the medical director's position in accordance with the Board policy. Karen Williams reviewed the Investment Report and the Securities Lending Report for the month of March. It was moved by Trustee Dedic and supported by Trustee M. Parker to adjourn the meeting. Adopted by the following vote: 5— 0. The meeting adjourned at 9:57 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 June 22, 2017 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:35 a.m. Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker -6 Absent: Trustee Bernero, Houghton, Riley Others: Karen E. Williams, Angela Bennett, 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 Good supported by Trustee Mark Parker to approve the Official Minutes of the Employees' Retirement System Board Meeting of May 18, 2017. Adopted by the following vote: 6 — 0 It was moved by Trustee Kraus and supported Joint Minutes of the Employees' Retirement Retirement Board of May 18, 2017. Adopted by the following vote: 6 -0 Secretary's Report: by Trustee Good to approve the Official System Board and Police and Fire 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 370. Total deferred: 71. 1 death(s) James White, (retired 3/8/1999 —T214, died 4/11/2017, age 72, no beneficiary. Refunds made since the last regular meeting amounted to $935.61. Retirement allowances paid for the month of May 2017, amounted to $1,907,974.96. Total retirement checks printed for the ERS System: 907. Total Retirement checks printed for both systems: 1642. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Good and supported by Trustee Mark Parker to approve the following requests for Regular Age & Service Retirement: Timothy J. Hundt (Public Service/UAW), 11 years of service credits, age 58, effective July 1, 2017. (From Deferred) Employees' Retirement System Regular Meeting of June 22, 2017 Page 2 It was moved by Trustee Good and supported by Trustee Mark Parker to approve the following requests for Regular Age & Service Retirement (continued): Michael L. Rau (Public Service/UAW), 25 years, 3 months of service credits, age 50, effective July 14, 2017 James P. Young (Public Service/UAW), 19 years, 2 months of service credits, age 58, effective July 1, 2017 (From Deferred) Adopted by the following vote: 6 - 0 There were no duty disability retirement requests. There were no non -duty disability retirement requests. It was moved by Trustee Good and supported by Trustee Mark Parker to approve the following request for Refund of Accumulated Contributions: Yuriy Flit, T243 CTP, not vested, $1,116.12 Victoria Nevins, Park Police, not vested, $6,474.30 Adopted by the following vote: 6 — 0 Karen Williams reported that the Retirement Office received notification from Trustee Houghton, and Trustee Riley stated that they would not be able to come to the meeting. The trustees requested to be excused from the June meeting. It was moved by Trustee Dedic and supported by Trustee Good to excuse Trustee Houghton from the June meeting. It was noted that Trustee Riley was Ex -Officio and not required to be excused. Adopted by the following vote: 6 — 0. Trustee Mark Parker gave his report of the MAPERS Annual Spring Conference. He discussed that actuarial workshop that featured Greg Stump. The workshop included discussion on life expectancy and its impact on contributions. Mr. Parker also attended workshops regarding smart -beta investments that are a cross between active and passive investments with lower fees. Mr. Parker also discussed the networking opportunities at the conference. Employees' Retirement System Regular Meeting of June 22, 2017 Page 3 Trustee Dennis Parker reviewed his attendance at the MAPERS Spring Conference. Trustee Parker provided an overview of the issues discussed in the workshops he attended that included the uncertainty in the political and economic environment, and non -funded liability. Trustee Dedic also added that he attended MAPERS Spring Conference and he also reviewed the actuarial workshop with Greg Stump, Loomis Sayles discussion on the economy, political and health care uncertainty. Trustee Dedic also discussed MAPERS lobbyist who encouraged members, friends and family to get involved and contact their legislator regarding important issues that affect public pensions. Karen Williams reported that the MAPERS Fall Conference was scheduled for September 16-19, 2017. Ms. Williams requested that member who wished to attend contact the Retirement Office. Trustee Mark Parker announced that a Retirement Conference Meeting was scheduled following the Employees' Retirement System Board for the Education subcommittee. There are no public comments. Attorney Ken Lane updated the Board that the Retirement Ordinance is under review in the City Attorney's Office. Attorney Lane reviewed the Policy regarding the purchase of service credits. The policy lists the procedure and makes clear that the member must be employed as a city employee to buy service credits. Attorney Lane wanted the obligation to be on the employee to meet the requirements of the purchase. Attorney Lane updated the Employees Retirement System Board regarding Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. TMs. Bennett, Secretary of the Board submitted the annual report that includes the actuarial valuation and the year-end financial report. Attorney Lane reviewed the action list required to improve the funding level. This list will be forwarded to the State Treasury upon final review from the Secretary, legal counsel and the actuary. Attorney Lane recommended that the members update the Employees Retirement System handbook at a future meeting. Employees' Retirement System Regular Meeting of June 22, 2017 Page 4 Karen Williams reported that one nominating petition had been received by Dennis Parker for the Employees Retirement System Board Trustee election. Karen Williams distributed a memo from the Secretary of the Board regarding the election of Mr. Dennis Parker as Trustee for the term ending.. TO: Trustees, Employees Retirement System Trustee Board Full -Time Permanent Employees who are members of the EMPLOYEES' RETIREMENT SYSTEM (Defined Benefit Plan) FROM: Angela Bennett, Director of Finance DATE: June 21, 2017 SUBJECT: Election — Board of Trustee — Retirement System The deadline for turning in nominating petitions for the term of office as Trustee of the Employees Retirement System Board was 4:00 p.m. on Thursday, June 15, 2017. One petition was received from Mr. Dennis Parker, and has been certified by the Secretary of the Board, Ms. Angela Bennett. Since there was only 1 candidate for this position, it was not necessary to conduct a Primary and General election for the office of Trustee. Mr. Dennis Parker has filed a valid petition and is running unopposed, therefore, he has been declared the winner for the office of Trustee. Mr. Parker has been elected to the Employees Retirement System for the term ending June 30, 2021. It was moved by Trustee Dedic and supported by Trustee Good to certify the election results for the Employees Retirement System Board Trustee position with term ending June 30, 2021. Adopted by the following vote: 6 - 0 Karen Williams reported that the City Clerk's Office will provide begin providing orientation folders for new members of official Boards and Commissions. Karen Williams provided dates for the due diligence visits to Wasatch, Franklin Templeton and Western Asset as recommended by Asset Consulting Group. Ms. Williams requested that member review the dates so it could be narrowed for planning purposes. The trip would be scheduled for November or December. Attorney Lane reported that the City Attorney's Office was working on a report regarding their review of contract employees who have retired from the City of Lansing for Employees' Retirement System Board. The City Attorney's Office met with Human Resources and located 3 contracts that may require further review. Those contracts expire June 30, 2017. The Board has requested a copy of the report. Karen Williams reported that the Chief Information Officer requested guidelines for establishing trustee portal or virtual laptop Trustee Kraus commended that she just wanted portal access, some way that she could log in and review files and other Board documents. Ms. Bennett stated there is a policy for current employees. She noted that legal counsel could check to see what is required for trustees. Attorney Lane distributed the Medical Director Request for Proposal at the last meeting for Board review. The trustees expressed interest in coordinating the request for proposals for both boards. Karen Williams reviewed the Investment Report and the Securities Lending Report for the month ending May 30, 2017. . It was moved by Trustee Dedic and supported by Trustee Kraus to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:12 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Dennis R. Parker, Vice Chairperson Employees' Retirement System