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HomeMy WebLinkAbout2018 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room a. m. 10th Floor, City Hall Lansing, MI January 18, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:34 a.m. Present: Dedic (8:39), Good, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington - 8. Absent: Trustees Kraus Others: Karen E. Williams, Angela Bennett, Finance Department, Acting Human Resource Director; Attorney Ken Lane, Clark Hill (representing the Law Department). It was moved by Trustee Good and supported by Trustee M. Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of December 21, 2017. Adopted by the following vote: 7 — 0. Karen Williams reported that Jodi Washington had been appointed as the City Council representative to the Employees' Retirement System Board. 6 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 402. Total deferred: 72. 0 death(s). Refunds made since the last regular meeting amounted to $1,630.00. Retirement allowances paid for the month of December 2017, amounted to $1,911,446.03. Total retirement checks printed for the ERS System: 907. Total Retirement checks printed for both systems: 1641. Eligible domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Karen Williams explained that Mr. Bill Barkyoumb requested to purchase five years of universal service credits after he had been approved for age and service. Mr. Barkyoumb has met the eligibility requirements and submitted the appropriate paperwork. Attorney Lane stated that Mr. Barkyoumb is still eligible to purchase time. He stated that any trustee can call for a motion to reconsider. It was moved by Trustee Munroe and supported by Trustee Good to reconsider the motion to approve the following request for regular age and service retirements: William Barkyoumb (Finance —Teamster), 20 years, 2 months of service credits, age 69, effective January 27, 2018. Adopted by the following vote: 7 — 0. Employees Retirement System Regular Meeting of January 18, 2018 Page 2 It was moved by Trustee Good and supported by Trustee Munroe to approve the following requests for Regular Age and Service retirements: Jeff L. Burnham (Finance —Teamster), 11 years, 1 month of service credits, age 58, effective January 1, 2018. (From Deferred) Gregory Dean, (Public Service -UAW), 25 years of service credits, age 53, effective January 15, 2018 William Barkyoumb (Finance —Teamster), 25 years, 2 months of service credits, age 69, effective January 27, 2018 (with the purchase of five years of universal service credit) Adopted by the following vote: 8 — 0. Karen Williams reported to the Retirement Board that medical reports regarding Applicant 2017 —E1017 and Applicant 2017 —E1109 requests for duty disability had been received and submitted to the disability subcommittee. It was moved by Trustee Mark Parker and supported by Trustee Good to recess the meeting to allow the disability subcommittee to meet. Adopted by the following vote: 8 — 0. The Employees' Retirement System Board recessed at 8:40 a.m. The Employees' Retirement System Board resumed at 8:44 a.m. Trustee Good reported that the disability subcommittee had meet and recommended to the Board to approve applicant 2017-E1017 and applicant 2017-E1109 for duty disability. Trustee Schor and Trustee Washington requested a summary of the applicant's request and was uncomfortable voting for the request without information. It was moved by Trustee Good and supported by Trustee Dedic to close session to allow trustees to review and discuss medical reports and employee information regarding the applicants request for duty disability. Roll Call Vote: Yeas, Dedic, Good, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington — 8. Nays: 0. The Employees' Retirement System Board went into closed session at 8:48 a.m. The Employees' Retirement System Board resumed open session at 8:59 a.m. Employees Retirement System Regular Meeting of January 18, 2018 Page 3 It was moved by Trustee Good and supported by Trustee Mark Parker to approve the duty disabilities of applicant 2017-E1017 and applicant 2017-E1109. Approve by the following vote: 8 - 0 Karen Williams updated the Retirement Board regarding Applicant 2017-E0817 request for non -duty disability. The applicant missed his initial appointment and will be re- scheduled for an appointment with the medical director. Attorney Lane explained the differences of duty and non -duty retirements. It was moved by Trustee Dedic and supported by Trustee Mark Parker to approve the request for Refund of Accumulated contribution: Delores R. Zarka, T243 District Court, vested, $35,448.88 Kedrick Doezema, Police (Civilian), not vested, $1,129.67 Adopted by the following vote: 8 - 0. Trustee Schor inquired if the contribution received interest and at what rate Ms. Bennett explained that the accumulated contribution did receive interest at a rate set of 3%. The interest rate is to reimburse the employee for the held contributions that are not paid to the employee. It was moved by Trustee Dedic and supported by Trustee Good to excuse Trustees Kraus from the January Employees' Retirement System Board meeting. Adopted by the following vote: 8 -0. Karen Williams reported that MAPERS will host a One Day Conference, March 2, 2018 in Troy, Michigan. She requested that trustees who wish to attend contact the Retirement Office. Ms. Williams explained that for trustees who attended conferences have oral reporting requirements. Trustees who wished to attend in-state conferences need to receive approval from the chairperson. Retirement Board approval is required for out-of-state conferences where more than 2 members or the chairperson would like to attend. Adopted by the following vote: 8 - 0. Attorney Ken Lane discussed that each trustee is allocated $4,000 for instate travel and $6,000 for out of state travel. Council President Wood addressed the Employees' Retirement System to announce that the February 12 Committee of the Whole Meeting will have a presentation from Segal firm that was selected by financial health team to review the City's retirement systems and make recommendations. The Committee of the Whole will review the Financial Health Team audit, and the retirement board's actuarial results. Employees Retirement System Regular Meeting of January 18, 2018 Page 4 Council Wood expressed concern of the length of time that has been needed to update Employees' Retirement Ordinance. Attorney Lane reported that the Retirement Ordinance was under review by the City Attorney's Office. Trustee Washington expressed concern that the Retirement Ordinance was outdated and inquired if the Plan was compliance. Attorney Lane stated the collective bargaining agreement dictate the terms of the Retirement Ordinance. Attorney Lane opined that the Plan is in compliance with the collective bargaining agreements and the Ordinance. Attorney Lane noted that it would be preferable to have an updated Ordinance available. He will work with the City Attorney's office to get movement on the Retirement Ordinance. Attorney Lane also reported that new member receive Trustee Orientation with legal counsel. The meeting consists of the Ordinances and Policies that govern the Retirement System. Attorney Lane reviewed the proposed Employees' Retirement System budget for 2018 for Board review. Karen Williams reported that each January, officers are elected and subcommittees are selected. It was moved by Trustee Munroe and supported by Trustee Good to open nominations and reconfirm Dennis Parker as chairperson and Mark Parker as vice chairperson. Trustee Dennis Parker accepted the nomination as chairperson. Trustee Mark Parker accepted the nomination as vice chairperson. Trustee Parker asked if there were any additional nomination for chairperson or vice chairperson. There were no additional nominations and the nominations were closed. Adopted by the following vote: 8 — 0. Trustee Dennis Parker requested that members let the Retirement Office know which subcommittees they would like to serve. Karen Williams reported that Gabriel Roeder Smith has requested permission to update the Minute Master. The cost of the update was not to exceed $3,100. Karen Williams explained that Minute Master contained an indexed searchable archived minutes, agenda items, legal opinion and contracts. It was moved by Trustee Good and supported by Trustee Munroe to approve the update of Minute Master. Adopted by the following vote: 8 - 0 Attorney Lane reported that the Government Retirement Benefit Act had been signed by the Governor. Due to the City's fiscal year, reporting for the retirement boards are due January 31. Public Act 314 requires that the reporting includes the actuarial valuation and the year-end investment report of the Employees' Retirement System. Ms. Bennett, Secretary of the Board will submit the required reports to the State of Michigan. Attorney Lane reported that there was only one Medical Director RFP received, from Dr. Roth. Attorney Lane reported that he will send out the report again for additional responses. Attorney Ken Lane provided an overview of employees who retire and come back to the City as contract employees. IRS has guidelines regarding the conditions that the contract must follow to be compliant. The City Attorney has reviewed the previous fiscal year contracts and all contracts are in compliance with IRS guidelines. The City Attorney's Office is reviewing the current fiscal year and Attorney Lane has requested a memo once the current review has been completed. Ms. Angela Bennett discussed that Asset Consulting Group is the retirement boards investment advisors and consultant. ACG are not investment managers for the board's portfolio. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Account report for month ending December 31, 2017. It was moved by Trustee Dedic and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 8 — 0 The meeting adjourned at 9:37 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 Council Conference Room a. m. 10th Floor, City Hall Lansing, MI February 22, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:36 a.m. Present: Dedic (8:40), Munroe, Kraus, D. Parker, M. Parker, Sanchez-Gazella, Washington - 7. Absent: Trustees Good, Schor Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department); Walter Allen, employee. It was moved by Trustee M. Parker and supported by Trustee Munroe to approve the Official minutes of the Employees' Retirement System Regular Meeting of January 18, 2018. Adopted by the following vote: 7 — 0. Karen Williams introduced Mr. Walter Allen and provided an overview of his service credit issue. Ms. Williams explained that Mr. Allen lost his UAW service credits when he transferred from the City's Defined Benefit to the Defined Contribution plan. Ms. Williams recommended that Mr. Allen provide a letter of request for the Employees' Retirement System Board. Mr. Walter Allen reviewed that he started as a seasonal worker in 1993 before becoming full time in 1996. Two and one-half years later, he applied and was offered a position in the Teamster Union. In 1998, Mr. Allen and his wife met with Sharon Daniels in the Personnel Department when he was given a form to sign regarding the pension. Mr. Allen was not given a copy of the form. Mr. Allen repeatedly asked Ms. Daniels if he would lose his UAW credits if he accepted the new position. He was informed that he would not lose the UAW credits and that he would have his time combined with the Teamster service. Mr. Walter Allen stated that Ms. Daniel informed him that an agreement was in the works between the UAW and Teamsters union to recognize the time. In 2018, Mr. Allen met with Karen Williams in the retirement office and was informed that he no longer had UAW service credits because he had moved from a defined benefit plan to a defined contribution plan. Ms. Williams also provided a signed copy of the form discussed at the 1998 with Ms. Daniels. Mr. Allen requested to have his UAW service credits restored due to the misinformation that he received in 1998. Employees Retirement System Regular Meeting of February 22, 2018 Page 2 Trustee Dennis Parker with approval of the Board moved up the service credit issue on the agenda for Board consideration. Attorney Lane explained that the Board considered a similar issue in 2012. An opinion was done that indicated that an employee who transfers between bargaining units is governed by the succeeding union, the Teamsters. There was no agreement made for the teamsters to recognize the service credits. Attorney Lane opined that those UAW service credits were loss when he transferred occurred in 1998. Attorney Lane recommended that the Employees' Retirement System Board could allow Mr. Allen to receive a return of his UAW contributions. Trustee Dennis Parker reported that the UAW did not have employee contributions at that time. Trustee Mark Parker inquired regarding the employee who misinformed Mr. Allen. Attorney Lane opined that the employee in 1998 did not have the authority to make the statement that the service credits would be maintained. The statement was outside the scope of the employee's authority. Attorney Lane also indicated that the Reciprocal Retirement Act could not be used to transfer service credits. Trustee Mark Parker inquired if Mr. Allen could find resolution by taking his requesting to the Teamsters union. Trustee Washington inquired regarding the contributions and vesting in the UAW at the time. Trustee Dennis Parker explained that vesting for pension benefits was eight years and there were no employee contributions. Ms. Bennett explained that to place a value on the UAW time would need an actuarial valuation. Attorney Lane opined that the Retirement Board had no authority to restore the service credits. Attorney Lane will provide a copy of 2012 legal opinion regarding service credit transfer. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 5 retired. Total active membership: 399. Total deferred: 74. 3 death(s). Walter L. Funches, (retired 11/1/2004, ,UAW), died December 27, 2017, age 79, no beneficiary; Georgina Viele (retired 7/1/1992, Teamster 243), died January 20, 2018, age 88, no beneficiary; Ronald Onufer (retired 10/1/1997, NonBargaining), died January 27, 2018, age 68, beneficiary to receive 100%. Refunds made since the last regular meeting amounted to $36,578.55. Retirement allowances paid for the month of January 2018, amounted to $1,953,199.07. Total retirement checks printed for the ERS System: 907. 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. Employees Retirement System Regular Meeting of February 22, 2018 Page 3 It was moved by Trustee M. Parker and supported by Trustee Kraus to approve the following requests for regular age and service retirements: Brian Love (Public Service — Teamster 243), 20 years, 1 month of service credits, age 60, effective February 23, 2018. Adopted by the following vote: 8 — 0. Karen Williams updated the Retirement Board regarding Applicant 2017-E0817 request for non -duty disability. Arrangements are being made for the medical director to come to Lansing. It was moved by Trustee Kraus and supported by Trustee Munroe to approve the request for Refund of Accumulated contribution: Karen Olson -Vermillion, District Court, not vested, $5,652.58 Adopted by the following vote: 8 - 0. Karen Williams provided the dates for the following conferences: MAPERS One Day Conference, March 2; MAPERS Spring Conference, May19-22; ABS Investor Conference, May 9-10 and NCPERS Annual Conference, May 13-16. Ms. Williams reviewed the policy regarding conference attendance. Trustee must receive approval from the chair to attend in-state conferences. Out -State Conferences require chairperson approval and may require Board approval if more than two trustees or the chairperson wishes to attend. It was moved by Trustee Kraus and supported by Trustee Mark Parker to allow the chairperson and any trustee who wished to attend the ABS Investor Conference and NCPERS Annual Conference Adopted by the following vote: 8 - 0. Attorney Lane reported that he met with the City Attorney's office regarding the Employees' Retirement System Ordinance. Attorney Lane reported that the goal is to have the Ordinance available for review by the May meeting. Attorney Lane reported regarding the State of Michigan reporting requirements for municipal retirement system. Public Act 314 requires that the actuarial report with the system's year-end financial report to the Department of Treasury. Secretary Bennett has completed this year's system filing. Public Act 202 has additional requirements for municipalities that are less than 60% funded. The City can request a waiver for the Employees' Retirement System with Mayor and City Council approval. If the waiver is not approved, a corrective action plan must be created for review by the Municipality Stability Board. The Treasury Department will evaluate communities that have underfunded status. Employees Retirement System Regular Meeting of February 22, 2018 Page 4 Attorney Lane reported that the Board's investment agreement with Prissa II had been amended to allow additional investors. Attorney Lane noted that the amendment does not change anything in the agreement with the City of Lansing. He has reviewed the agreement and has no issues with the amendment. The amendment also had been reviewed by Asset Consulting Group and they had no issues. Attorney Lane discussed the proposed budget for 2018. Attorney Lane will update the budget with the final total from 2017 and provide at the next meeting. Attorney Lane provided a review of the PA 34 requirements for a budget and provides a limit on travel expenses. Attorney Lane reported that Trustee Schor sent a recommendation to lower the amount of travel expenses on the budget. Ms. Bennett indicated that the Mayor expressed concern regarding the public scrutiny of having $10,000 per trustee, the amount appears high in light of the funded status of the Employees Retirement System. Trustee Dennis Parker noted that the average per trustee actually spent is generally only a small percentage of what is allocated. Trustee Munroe inquired if the information regarding the average spent per trustee could be made more prominent on the proposed budget Trustee Kraus stated that she understood about the optics, but expressed concern that the focus should be on how the funds were spent, the percentage of total allocated. Trustee Kraus indicated that she was not able to attend many conferences and trainings last year, but had the benefit of many years of extensive training while a City employee who participated with both retirement boards, defined contribution and deferred compensation committees. Ms. Bennett reported that Securities Lending as a part of the retirement assets and the proposed budget is a public document. Ms. Bennett indicated the public may not read the footnotes on the actual spending and that there is accountability to the public for the monies spent. Ms. Bennett discussed bring the budget in line with what is being spent. Trustee Mark Park expressed that training is not a perk. He indicated that Michigan is not a major financial center so there is a need to travel for national conferences and due diligence to receive the best advice for the fund. Trustee Washington expressed that training for Board members is critical because there is so much financial and actuarial data to understand. Attorney Lane indicated that in the past the secretary of the Board would be responsible for providing the reports to Treasury Department Attorney Lane recommended that the Board discuss who would be responsible for these reports sent by the administration to the State of Michigan. Trustee Dedic disagreed with Ms. Bennett regarding the Securities Lending account. Trustee Dedic expressed that there is no cost savings with lowering the budgeted amount and would not be supportive of lowering the amount. Trustee Washington cautioned that once you lower the budgeted amount, you may have more issue trying to raise it at a later date. Trustee Kraus indicated that the travel expenses were less than .3% of the overall budget. It was moved by Trustee Munroe and supported by Trustee Mark Parker to approve the budget as presented. Adopted by the following vote: 8 — 0. Karen Williams reported that 2018 subcommittee membership will be distributed at the next meeting. Attorney Ken Lane reported that he requested, for the next meeting, a written memo from the City Attorney's Office regarding their review of the contract employees. Since June 30, 2017, all the contracts have been renewed and are compliant. Attorney Lane reported that he re -distributed Medical Director RFP and did not receive any additional responses. Dr. Roth, the current medical director was the only responses. Trustee Kraus recommended that Attorney Lane check with other municipalities regarding their medical directors and use that information to create a list for distribution. Karen Williams reviewed the Quarterly Expenses Report and the Securities Lending Account report for month ending January 31, 2018 The meeting adjourned at 9:46 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Dennis R. Parker, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM - updated Regular Meeting Council Conference Room a. m. 10th Floor, City Hall Lansing, MI March 22, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:32 a.m. Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella(8:34), Schor (8:35), Washington - 9. Absent: 0 Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department). It was moved by Trustee Kraus and supported by Trustee M. Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of February 22, 2018. Adopted by the following vote: 7 — 0. It was moved by Trustee Kraus and supported by Trustee Good to approve the Official Minutes of the Joint Police and Fire Retirement System Board and the Employees' Retirement System Board Meeting of February 20, 2018. Adopted by the following vote: 7 — 0. There were no public comments for items on the agenda. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 402. Total deferred: 72. 2 death(s) Nancy McNamara, (retired 5/15/2014, UAW), died March 3, 2018, age 64, spouse to receive 100%; Leon Hilton (retired December 1, 2001, UAW), died March 6, 2018, age 69, beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $5,652.58. Retirement allowances paid for the month of February 2018, amounted to $1,930,752.50. Total retirement checks printed for the ERS System: 909. Total Retirement checks printed for both systems: 1647. 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. There were no requests for duty disability retirements. Karen Williams updated the Retirement Board regarding Applicant 2017-EO817 request for non -duty disability. Arrangements have been made for the medical director to come to Lansing to see the applicant. Employees Retirement System Regular Meeting of March 22, 2018 Page 2 There were no refunds of accumulated contributions. Trustee Dedic provided an oral report of the MAPERS One Day Conference. Trustee Dedic gave an overview of the issues presented by ABS, Navigating Global Equity Markets. Trustee Dedic discussed the legislature update and noted that there would be a large turnover in state legislature. Trustee Dedic reviewed the session on hedge funds, and real estate. Karen Williams provided the dates for the following conferences: MAPERS Spring Conference, May19-22; ABS Investor Conference, May 9-10 and NCPERS Annual Conference, May 13-16. Attorney Lane updated the Employees' Retirement System Board regarding Tegrit's notification of its intent to switch hosting providers. Tegrit intends to be fully migrated off the old system May 1, 2018. The City's Information Technology Director reviewed the proposed change on behalf of the Board. He did not have a concern with the move to the new provider, but had some additional questions. Attorney Lane distributed a confidential memo that discussed security information. Attorney Lane recommended closed session if the members wished to discuss the security details. Ms. Williams indicated that the Information Director had contracted Tegrit to address his questions and concerns. The Information Technology director informed the Retirement Office that Tegrit had addressed his concerns and requested that the Retirement Office test the revised website. The Retirement Office planned to test the site and get a confirmation to go forward from the Information Technology director. Trustee Kraus expressed concern about the May 1, 2018 deadline and if the Board would get the confirmation needed in time from the Information Technology department. Attorney Lane distributed the 2018 Employees' Retirement System Board budget. Trustee Schor reported that he had received an email from the Information Technology Director indicated that he approves of the move to Rackspace, and is working with Tegrit regarding his security concerns for the website. Angela Bennett reported that the City filed annual reports for its two pension systems and health care systems. The ERS system falls below the state's 60% threshold and the health care systems fall below the state's 40% threshold. Angela Bennett has submitted a waiver request to the State Department of Treasury that must be approved by City Council and the Mayor. Angela Bennett reviewed waiver that included the actuarial projections, collective bargaining changes and board's changes to its actuarial assumptions. The City also contributed an additional $600,000 to the pension plan for the fiscal year. If the waiver is not approved, a corrective action plan will be created for review by the State Municipality Stability Board. The Treasury Department will evaluate communities that have underfunded status. Employees Retirement System Regular Meeting of March 22, 2018 Page 3 Attorney Ken Lane reported that he requested, for the Joint meeting, a written memo from the City Attorney's Office regarding their review of the contract employees. Since June 30, 2017, all the contracts have been renewed and are compliant. Attorney Lane indicated that he contacted his colleague for information on the Medical Director for the City of Detroit. The retirement system's medical director is a part of the Henry Ford Health System. Karen Williams recommended sending out a request for information to MAPERS administrators. Attorney Lane posed the two questions for the request for information: Who serves as the system's medical director? How long has the person or entity served as the medical director? Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month of February 28, 2018. It was moved by Trustee Kraus and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 9 — 0. The meeting adjourned at 9:06 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 Council Conference Room a. M. 10th Floor, City Hall Lansing, MI April 19, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:32 a.m. Present: Dedic, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella(8:34), Schor (8:35), Washington - 7. Absent: Good Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department). It was moved by Trustee Kraus and supported by Trustee M. Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of March 22, 2018. Adopted by the following vote: 7 — 0. There were no public comments for items on the agenda. 3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 400. Total deferred: 73. 1 death(s) Juanita Hunt, died April 10, 2018, age 79, spouse of Nonbargaining retiree. Refunds made since the last regular meeting amounted to $0.00 Retirement allowances paid for the month of March 2018, amounted to $1,928,887.43. Total retirement checks printed for the ERS System: 909. Total Retirement checks printed for both systems: 1652. Eligible domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported by Trustee Dedic to approve the following requests for regular age and service retirements: Michael J. Pelot (District Court — NonBargaining), 10 years, 1 month of service credits, age 55, effective April 18, 2018. (From Deferred -65 points) Patricia Layne (Police/Civilian — Teamster 243), 12 years, 7 months of service credits, age 60, effective May 1, 2018. Adopted by the following vote: 7 -0. There were no requests for duty disability retirements. t Karen Williams updated the Retirement Board regarding Applicant 2017-EO817 request for non -duty disability. The applicant was evaluated by the Medical Director. The medical director's report was received by the disability subcommittee for review. Employees Retirement System Regular Meeting of April 19, 2018 Page 2 It was moved by Trustee Kraus and supported by Trustee Mark Parker to go into closed session to review the medical report for Applicant 2017-E0817. Adopted by the following roll call vote: Yes: Dedic, Kraus, D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington No: 0. The Employees Retirement System Board arose from closed session at 8:42a.m. It was moved by Trustee Sanchez-Gazella and supported by Trustee Mark Parker to approve the non duty disability of Applicant 2017—E0817. Adopted by the following vote: 7 -0. There were no refunds of accumulated contributions. Karen Williams distributed the 2018 Travel and Education Expenses Policy. It was moved by Trustee Kraus and supported by Trustee Dedic to accept the 2018 Travel and Education Expenses policy. Adopted by the following vote: 7 -0. Karen Williams provided the dates for the following conferences: MAPERS Spring Conference, May19-22; ABS Investor Conference, May 9-10 and NCPERS Annual Conference, May 13-16. Karen Williams distributed Attorney Lane updated the Employees' Retirement System Board regarding Tegrit's notification of its intent to switch hosting providers. Tegrit intends to be fully migrated off the old system May 1, 2018. The City's Information Technology Director reviewed the proposed change on behalf of the Board. He did not have a concern with the move to the new provider, but had some additional questions. Attorney Lane distributed a confidential memo that discussed security information. Attorney Lane recommended closed session if the members wished to discuss the security details. Ms. Williams indicated that the Information Director had contracted Tegrit to address his questions and concerns. The Information Technology director informed the Retirement Office that Tegrit had addressed his concerns and requested that the Retirement Office test the revised website. The Retirement Office planned to test the site and get a confirmation to go forward from the Information Technology director. Trustee Kraus expressed concern about the May 1, 2018 deadline and if the Board would get the confirmation needed in time from the Information Technology department. � ' � i � .� �. t.� r 1. Attorney Lane distributed the 2018 Employees' Retirement System Board budget. Trustee Schor reported that he had received an email from the Information Technology Director indicated that he approves of the move to Rackspace, and is working with Tegrit regarding his security concerns for the website. Angela Bennett reported that the City filed annual reports for its two pension systems and health care systems. The ERS system falls below the state's 60% threshold and the health care systems fall below the state's 40% threshold. Angela Bennett has submitted a waiver request to the State Department of Treasury that must be approved by City Council and the Mayor. Angela Bennett reviewed waiver that included the actuarial projections, collective bargaining changes and board's changes to its actuarial assumptions. The City also contributed an additional $600,000 to the pension plan for the fiscal year. If the waiver is not approved, a corrective action plan will be created for review by the State Municipality Stability Board. The Treasury Department will evaluate communities that have underfunded status. Employees Retirement System Regular Meeting of March 22, 2018 Page 3 Attorney Ken Lane reported that he requested, for the Joint meeting, a written memo from the City Attorney's Office regarding their review of the contract employees. Since June 30, 2017, all the contracts have been renewed and are compliant. Attorney Lane indicated that he contacted his colleague for information on the Medical Director for the City of Detroit. The retirement system's medical director is a part of the Henry Ford Health System. Karen Williams recommended sending out a request for information to MAPERS administrators. Attorney Lane posed the two questions for the request for information: Who serves as the system's medical director? How long has the person or entity served as the medical director? Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month of February 28, 2018. It was moved by Trustee Kraus and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 9 — 0. The meeting adjourned at 9:06 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 Council Conference Room a. m. 10th Floor, City Hall Lansing, MI May 24, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:31 a.m. Present: Dedic, Good, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington - 8. Absent: Kraus Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department). It was moved by Trustee Dedic and supported by Trustee Good to approve the Official minutes of the Employees' Retirement System Regular Meeting of April 19, 2018. Adopted by the following vote: 8 — 0. There were no public comments for items on the agenda. 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 402. Total deferred: 73. 2 death(s) William Dunlap (retired 6/1/1984 — T243), died March 22, 2018, age 88, beneficiary to receive 50; Thelma Steed (retired 10/10/1988 — Nonbargaining), died April 9, 2018; no surviving beneficiary. Refunds made since the last regular meeting amounted to $0.00 Retirement allowances paid for the month of April 2018, amounted to $1,927,712.23. Total retirement checks printed for the ERS System: 910. Total Retirement checks printed for both systems: 1654. Eligible domestic relations orders received:0. Domestic relations orders pending: 1. 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 and service retirements: Harold V. Armour (Finance — Teamster 243 Supervisory), 18 years, 3 month of service credits, age 70, effective June 11, 2018. Robert C. Davis (Police/Civilian — Teamster 243 CTP), 25 years 4 months of service, age 50, effective June 24, 2018. Victor D. Rose (Public Service — Nonbargining Supervisory), 2 years, 4 months of service credits, age 62, effective June 2, 2018. (Former Retiree) Employees Retirement System Regular Meeting of May 24, 2018 Page 2 Ms. Williams explained that former retirees that are re-employed full-time by the City of Lansing become members of the retirement system. The retiree pension are suspended while an active employee. Once the member retires again, he resumes his first pension, and then a new pension is calculated for the years of service accrued during the re-employment. Adopted by the following vote: 8 -0. There were no requests for duty disability retirements. There were no requests for refund of accumulated contribution. It was moved by Trustee Good and supported by the Trustee Dedic to approve the following request for Refund of Accumulated Contribution: Rachel Hiveley, Police/Civilian — Teamster 243, Not Vested, $5,682.81 Adopted by the following vote: 8 - 0 Trustee Dedic provided his oral reports for his attendance the ABS, NCPERS and MAPERS Conferences in May. Trustee Dedic discussed the ABS Investor conference and attended workshops regarding long/short equity and emerging markets of Brazil, India, China and Russia. Trustee Dedic also reviewed the NCPERS conference that detailed the economic outlook and had workshops on trustee development, local municipalities' pension, ethical investing and investment with minority businesses. Trustee Dedic also discussed how the Opioid crisis has affected pension systems. Trustee Dedic attended MAPERS and attended the legislative sessions that reviewed the municipalities that did not receive retirement plan waivers from the State of Michigan Treasury. Trustee Dennis Parker provided his oral reports for his attendance at the ABS and MAPERS conference in May. Trustee Parker also discussed the ABS Investor conference where he attended workshops regarding long/short equity and emerging markets. The conference happened after the U.S. tariffs were announced. Trustee Parker also discussed the MAPERS conference and the municipalities that did not receive retirement plan waivers. Trustee Sanchez-Gazella provided her oral report for her attendance at the MAPERS Conference. Trustee Sanchez-Gazella attended the Actuary Hour and the Emerging Markets workshop. She enjoyed the Trustee Development seminar that provided a lot of important and useful information as she learns regarding the retirement system. Trustee Sanchez-Gazella was able to ask question of legal counsel that helped with the information. Trustee Mark Parker provided his oral report for his attendance at the MAPERS Conference. He reviewed the workshop speaker that discussed risks and issues associated the defined contribution plans. Trustee Parker also attended the Emerging Markets workshop. Employees Retirement System Regular Meeting of May 24, 2018 Page 3 Karen Williams announced that Asset Consulting Group would provide new trustee training at the August Joint meeting. Attorney Lane provided an oral report for his attendance at the MAPERS Conference. He attended the New Trustee Development that focused on disability retirement. He recommended a written policy that listed criteria with concrete steps for disability retiree re -exams. Attorney Lane distributed the revised election policy that includes electronic voting procedures. Karen Williams distributed proposed electronic voting rules. The electronic voting would not require that voters have an email address. Voters would need to log in to the site using their name and employee id number. Attorney Lane reported that the City Attorney's Office is working toward having a draft for the Employees' Retirement System Board Ordinance. Angela Bennett reported that the City filed a waiver application for the Employees' Retirement System and the two retiree health care systems. Ms. Bennett stated that the waiver applications were denied and now the ERS System has 180 days to provide a corrective action plan. Ms. Bennett indicated that the email from the State included a corrective action plan format takes into account prospective changes, system design changes and additional funding. Ms. Bennett did include the actuarial valuation projections in the waiver application that showed when the ERS system would be 60% funded. The City also contributed an additional $650,000 to the pension plan for the fiscal year. Trustee Sanchez-Gazella requested future updates from those members who attend the Financial Health Team meetings. Attorney Lane stated that the ERS system plan would have 60 days to resubmit if the corrective plan was not approved. Ms. Williams reviewed the Quarterly Expenses Report and the Securities Lending report for the month of April 30, 2018. It was moved by Trustee Kraus and supported by Trustee Good to adjourn the meeting Adopted by the following vote: 8 — 0. The meeting adjourned at 9:20 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Dennis R. Parker, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room a. m. 10th Floor, City Hall Lansing, MI June 21, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:34 a.m. Present: Dedic (, Good, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington - 9. Absent: Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department). It was moved by Trustee Good and supported by Trustee Mark Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of May 24, 2018. Adopted by the following vote: 8 — 0. It was moved by Trustee Mark Parker and supported by Trustee Munroe to approve the Official minutes of the Employees' Retirement System Board and Police and Fire Retirement System Board Joint Meeting of May 24, 2018. Adopted by the following vote: 8— 0 There were no public comments for items on the agenda. 3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 405. Total deferred: 73. 2 death(s) William Barkyoumb (retired 1/27/2018 — Teamsters 243), died May 19, 2018, age 69, beneficiary to receive 100%; Barbara A. Williams (retired 7/1/1988 — Nonbargaining), died May 26, 2018, no beneficiary. Refunds made since the last regular meeting amounted to $0.00 Retirement allowances paid for the month of May 2018, amounted to $1,934,238.49. Total retirement checks printed for the ERS System: 911. Total Retirement checks printed for both systems: 1655. Eligible domestic relations orders received:0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Good and supported by Trustee Munroe to approve the following requests for regular age and service retirements: David Vincent (Planning — Teamster 243 CTP), 14 years 5 months of service credits, age 58, effective July 1, 2018. Employees Retirement System Regular Meeting of June 21, 2018 Page 2 It was moved by Trustee Good and supported by Trustee Mark Parker to approve the following requests for regular age and service retirements (continued): Antonio J. Gonzales (Public Service — UAW), 15 years, 5 month of service credits, age 62, effective July 7, 2018 (with 11 years, 11 months of reciprocal time from MERS). Mr. Gonzales's pension would be based upon 3 years, 6 months of City of Lansing time) Scott Oberlin (Public Service — UAW), 21 years, 9 months of service credits, age 58, effective July 18, 2018. Adopted by the following vote: 8 -0. There were no requests for duty disability retirements. There were no requests for refund of accumulated contribution. It was moved by Trustee Good and supported by the Trustee Mark Parker to approve the following request for Refund of Accumulated Contribution: Daniel Garcia, Parks, UAW, not vested $3,381.26 Adopted by the following vote: 9 - 0 Karen Williams reported that the August Joint Meeting would include new trustee training, performance review and education. Karen Williams reported that ACG would provide an education forum for all of its Lansing areas clients, September 12, 2018. ACG will provide more details as they become available. Attorney Ken Lane updated the Board regarding the Employees' Retirement System Ordinance. The Ordinance is under review by the City Attorney's office. Attorney Ken Lane recommended that the Board adopt a written policy regarding disability retiree medical re- examinations. Attorney explained the disability re-exam process that is in place with the Police and Fire Retirement System. The Disability committee would review the retiree list and make recommendations to the full board for re -exams. Trustee Dennis Parker explained that the Employees Retirement System has a higher threshold for disability. Employees approved for duty disability cannot work at any job at the City. Trustee Kraus expressed a need to have the option to review disabled members and put a policy in place. Trustee Sanchez-Gazella also agreed that a policy should be drafted. Employees Retirement System Regular Meeting of June 21, 2018 Page 3 Karen Williams distributed and reported the Election Results posting for the Employees Retirement System Board and read the following into the minutes: 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 Friday, June 15, 2018. One petition was received from Ms. Carol Munroe, and has been certified by the Secretary of the Board, Ms. Angela Bennett. Since there was only 1 candidate for this position, it will not be necessary to conduct a Primary and General election for the office of Trustee. Ms. Carol Munroe has filed a valid petition and is running unopposed; therefore, she has been declared the winner for the office of Trustee. Pursuant to Retirement Board Election rules, Ms. Munroe has been elected to the Employees Retirement System for the term ending June 30, 2022. It was moved by Trustee Kraus and supported by Trustee Mark Parker to confirm Carol Munroe as Employees Retirement System Trustee for the term ending June 30, 2022. Adopted by the following vote: 9 — 0. Attorney Ken Lane distributed proposed electronic voting rules for review by the Employees' Retirement System. Trustee Mark Parker requested an updated of the Waiver application and requested that the item be placed on the pending agenda. Angela Bennett reported that the City filed a waiver application for the Employees' Retirement System and the two retiree health care systems. Ms. Bennett stated that the waiver applications were denied. Trustee Schor indicated that the ERS System has 180 days to provide a corrective action plan. Trustee Schor reported the City would begin working on the plan. Attorney Ken Lane distributed a policy regarding Contract Employees for Employees' Retirement System Board review. Attorney Ken Lane indicated that he sent the Medical Director Request for Proposal to three additional organizations that were found by contacting MAPERS Administrators. The Board received one response from MMRO. Trustee Dennis Parker referred the Medical Director Request for proposal to the ERS Board disability subcommittee. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month of May 31, 2018. It was moved by Trustee Good and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 8 — 0. The meeting adjourned at 9:06 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 Council Conference Room a.m. 10th Floor, City Hall Lansing, MI August 23, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:40 a.m. Present: Good, Kraus, D. Parker, M. Parker, Sanchez-Gazella, Washington - 6 Absent: Dedic, Munroe, Sanchez-Gazella, Schor Others: Karen E. Williams, Angela Bennett, Finance Department; Deputy City Attorney Joseph Abood, Attorney Ken Lane (at the request of the Law Department). It was moved by Trustee Good and supported by Trustee Mark Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of July 19, 2018. Adopted by the following vote: 5 — 0. There were no public comments for items on the agenda. 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 412. Total deferred 74. 2 death(s) David Wilson, (retired 11/13/2004 — UAW) died 7/16/2018, age 65, beneficiary to receive 100%; Marchiand Neves, (retired 1/18/2013 — T243, Supervisory) died 7/8/2018, age 56, no beneficiary. Refunds made since the last regular meeting amounted to $12,688.26. Retirement allowances paid for the month of July 2018, amounted to $1,939,767.07. Total retirement checks printed for the ERS System: 915. Total Retirement checks printed for both systems: 1657. 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 Good to approve the following requests for regular age and service retirements: Dwight Bryant (Public Service — UAW), 25 years of service credits, age 57, effective August 2, 2018. Renee Motley (District Court — T243 District Court), 6 years, 11 months of service credits, age 61, effective September 1, 2018 with 23 years, 1 month of reciprocal retirement service with the State of Michigan. (From Deferred) Mary Kelly (District Court — District Court Non Represented), 13 years, 1 month of service credits, age 60, effective September 8, 2018 Employees Retirement System Regular Meeting of August 23, 2018 Page 2 It was moved by Trustee Kraus and supported by Trustee Good to approve the following requests for regular age and service retirements (cont.): David A. Oberst (Public Service — UAW), 25 years of service credits, age 50, effective September 15, 2018. Adopted by the following vote: 5 — 0 There were no requests for duty disability retirements. There were no requests for non -duty disability. It was moved by Trustee Good and supported by the Trustee M. Parker to approve the following request for Refund of Accumulated Contribution: Desirae Kelley -Kato, HRCS, Nonbargaining, not vested, $5,632.07 Nicholas Soucy, HRCS, Teamster, not vested, $9,535.46 Sandra R. Thompson, District Court, vested, $8,080.34 Adopted by the following vote: 5 - 0 It was moved by Trustee Washington and supported by Trustee Good to excuse Trustee Dedic and Trustee Munroe from the Employees' Retirement System August meeting. Adopted by the following vote: 5- 0. Karen Williams reported that ACG would provide an education forum for all of its Lansing areas clients, September 12, 2018. The Forum will be held at the Accident Fund building. Karen Williams reported the following conferences: Mapers Fall Conference, September 22-25, 2018; NCPERS Public Safety Conferences, October 28-31; IFEBP Annual Conference, October 14-17, 2018. Deputy Director Joseph Abood reported that Attorney Ken Lane's addition to City Council approved legal counsel list was pending. The City Attorney's Office requested that Attorney Lane attend meeting to provide continuity to the Employees' Retirement System Board. The City Attorney's Office has recommended that Attorney Lane continue to staff the retirement boards pending City Council's approval. Attorney Ken Lane reported that the Retirement Ordinance was close to completion. He also will have the disability re-examination policy and contract employee policy at the next meeting for Board review. Ms. Bennett provided an update of the Employees Retirement System Corrective plan update. Ms. Bennett stated the Treasury Department provided further information and clarification regarding the process. The corrective plan would be submitted in November upon approval by the City Council. Employees Retirement System Regular Meeting of August 23, 2018 Page 3 Trustee Dennis Parker requested that Greg Stump perform a comparison between the open amortization and of the corrective steps that have been taken by the Board to close amortization. Trustee Kraus agreed that a discussion within the corrective plan be made regarding the closing of the amortization scheduled and other Board actions to approve the funding ratio. Trustee Mark Parker suggested that Greg Stump be at the presentation of the corrective plan. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month of June 30, 2018. The meeting adjourned at 9:05 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 Council Conference Room a.m. 10th Floor, City Hall Lansing, MI July 19, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:34 a.m. Present: Dedic (8:49 am), Good, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Washington - 7 Absent: Kraus, Schor Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill (representing the Law Department). It was moved by Trustee Good and supported by Trustee Mark Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of June 21, 2018. Adopted by the following vote: 6 — 0. There were no public comments for items on the agenda. 7 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total active membership: 412. Total deferred: 74. 2 death(s) Beatrice Clement, died May 27, 2018, age 93, spouse of Nonbargaining retiree); Alice Fox, died June 17, 2018, age 95, spouse of a Nonbargaining retiree. Refunds made since the last regular meeting amounted to $9,064.07 Retirement allowances paid for the month of June 2018, amounted to $1,937,477.77. Total retirement checks printed for the ERS System: 911. Total Retirement checks printed for both systems: 1656. 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 and service retirements: James E. Bennett (Planning — Teamster 243 CTP), 25 years of service credits, age 59, effective August 17, 2018. Adopted by the following vote; 6 — 0 There were no requests for duty disability retirements. There were no requests for non -duty disability. Employees Retirement System Regular Meeting of July 19, 2018 Page 2 It was moved by Trustee Mark Parker and supported by the Trustee Good to approve the following request for Refund of Accumulated Contribution: Troy Cervantes, District Court, Teamster, not vested, $4,510.40 Linette Silvernail, Fire (Civilian), Teamster, not vested, $4,796.60 Adopted by the following vote: 6 - 0 Karen Williams reported that the August Joint Meeting would include new trustee training, performance review and commodities education. Karen Williams reported that ACG would provide an education forum for all of its Lansing areas clients, September 12, 2018. ACG will provide more details as they become available. Karen Williams reported that the Mapers Fall Conference would be held September 22- 25,2018. Attorney Ken Lane reported to the Board that he resigned from Clark Hill. Clark Hill has selected an attorney to replace Attorney Lane on the retirement Boards. The City Attorney requested that Attorney Lane attend the Employees' Retirement System meeting this month as its representative as a part of the transition process. Attorney Ken Lane reviewed that the City Attorney is the legal advisor to the retirement boards. The City Attorney has selected outside counsel to staff and serve as legal advisor to the retirement boards. The City Attorney will provide a recommendation to the Boards regarding legal counsel replacement. Attorney Ken Lane informed the Employees' Retirement Board that the trustees does have the option under Public Act 314 to hire its own legal counsel. Attorney Lane reported that the Ordinance is under review by the City Attorney's office. Attorney Ken Lane reported that the Duty Disability Medical re-examination policy needed some additional work. The policy would be presented at the next joint meetings because it would affect both Boards. Attorney Ken Lane distributed and reviewed the amended Employees Retirement System Election rules to allow electronic voting. Employees Retirement System Regular Meeting of July 19, 2018 Page 3 It was moved by Trustee Mark Parker and supported by Trustee Munroe to approve the amended Employees Retirement System Election rules and that it supersede the existing Election rules. Adopted by the following vote: 7 — 0. Attorney Ken Lane reported that the City Attorney requested some modifications to the policy regarding Contract Employees for Employees' Retirement System Board. Karen Williams reported that the disability subcommittee has reviewed the medical director RFP and has a recommendation for the Employees' Retirement System Board. Trustee Good reported that the disability subcommittee met and its recommendation is to retain the services of Dr. Roth. Trustee Good informed the Board that the costs for MMRO were substantially higher. Trustee Dennis Parker indicated that there was no compelling reason to change medical director as there was no difference in performance between the two proposals. Attorney Lane indicated that the contract with Dr. Roth is open-ended and allows the contract to be terminated with 30 -day notice. Trustee Sanchez-Gazella commented that Dr. Roth has come to Lansing to see patients who were unable to travel. There were no update on the Employees' Retirement Correction Plan. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month of June 30, 2018. It was moved by Trustee Good and supported by Trustee Mark Parker to excuse Trustee Antonia Kraus from the July Employees' Retirement System Board. Adopted by the following vote: 7 -0. Trustee Good reported that the Police and Fire Retirement Board discussed hiring Attorney Ken Lane as its legal counsel. It was moved by Trustee Good and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:03 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 Council Conference Room a. m. 10th Floor, City Hall Lansing, MI October 18, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:33 a.m. Present: Good, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella - 6 Absent: Dedic, Schor, Washington. Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane (representing the Law Department). It was moved by Trustee Kraus and supported by Trustee Good to approve the Official minutes of the Employees' Retirement System Regular Meeting of September 23, 2018. Adopted by the following vote: 6 — 0. There were no public comments for items on the agenda. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 414. Total deferred: 74. 1 death(s) Ruth Ward, (retired 3/17/1990 — T243) died 10/3/2018, age 70, no beneficiary. Refunds made since the last regular meeting mounted to $8,671.79. Retirement allowances paid for the month of September 2018, amounted to $1,945,179.45. Total retirement checks printed for the ERS System: 919. Total Retirement checks printed for both systems: 1662. Eligible domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee M. Parker and supported by Trustee Good to approve the following requests for regular age and service retirements: Michael L. Crawford, (Public Service - UAW), 2210 years, 4 months of service credits, age 58, effective 10/1/2018. Adopted by the following vote: 6 — 0 There were no requests for duty disability retirements. There were no requests for non -duty disability. Employees Retirement System Regular Meeting of October 18, 2018 Page 2 It was moved by Trustee Good and supported by the Trustee Munroe to approve the following request for Refund of Accumulated Contribution: Adora Easterbook, District Court, Non Bargaining, not vested, $1,413.15 Adopted by the following vote: 6 - 0 Karen Williams reported that Trustee Schor and Trustee Washington contacted her to request to be excused from the October meeting. Trustee Dedic was attending the IFEBP Conference It was moved by Trustee Good and supported by Trustee Mark Parker to excuse Trustee Dedic and Trustee Washington from the October Employees' Retirement System meeting. It was noted that Trustee Schor did not need to be excused, because he is Ex -officio. Adopted by the following vote: 6 — 0. Trustee Mark Parker provided an oral report regarding the MAPERS Fall Conference. He discussed Public Act 202, actuarial workshop that discussed 30 -year open amortization. Trustee Parker stated that MAPERS had good speakers in the real estate/ fixed income review. He also discussed the activism within the larger municipal pension boards such as CALPERS that reduced CEO salaries. Trustee Kraus gave an oral report regarding the MAPERS Fall Conference. She stated that she learned something in all the session. Trustee Kraus attended the trustee trainee and learned that Article 1, Section 10 protects retiree health care if there is a contractual explicit promise for lifetime or eligible for Medicare. Trustee Kraus discussed the municipal stability board under Public Act 202. She detailed the Tim Skubick session and spoke that the moderate republican and democrats have been referred to as the exhausted majority. His session also discussed retirement systems being proactive with their legislators. Trustee Kraus provided an overview of small caps investments, risk management session discussed that boards needed to be proactive. She discussed actions such as contributing more during good times and buying out deferred/vested people. Trustee Kraus explained that taxpayer bears the costs of retirees who have inadequate pensions. Trustee Dennis Parker also attended the MAPERS Fall Conference and reviewed the workshops that detailed avoiding fiduciary potholes. He discussed a workshop that detailed better decision making by overcoming emotional bias. Trustee Dennis Parker attended the defined benefit pension sessions and how these pensions affects the long- term economic stability of retiree. Trustee Dennis Parker discussed the Tim Skubick session who spoke on the effect on term limits where lobbyist drive the legislative agenda. Employees Retirement System Regular Meeting of October 18, 2018 Page 3 Attorney Ken Lane attended the legislative breakfast at the MAPER Fall Conference. He discussed Public Act 202 and that MAPERS lobbyist was surprised that there were no waivers given. It was determined that the Treasury wanted to see these plans go through the Municipal Stability Board. Attorney Lane reported that Asset Consulting Group has negotiated new rates with the custodial bank, Northern Trust. Attorney Lane stated that the rate reduction with save the Employees' Retirement System approximately $4,500. Attorney Lane stated that the rates required a signed agreement to the contract. He has reviewed the document and has it available for the chairperson's signature. Ms. Angela Bennett discussed the provisions of Public Act 202 that lists Uniform Assumptions guidelines by the Michigan Department of Treasury. The Treasury Department has recommended but not required retirement plans to adopt the assumptions. For those plans that do not adopt the assumptions, the Department would require a separate actuarial prepared with the Treasury assumptions. Ms. Bennett reviewed a comparison between the Treasury valuation assumption and the current City of Lansing assumption. Ms. Bennett reviewed the corrective action plan that would be submitted to the State of Michigan. The plan would need to go to City Council for review and approval before it is submitted to the Municipal Stability Board. Ms. Bennett stated that the corrective action included the Segal study, Financial Health Team study, information on what has been done in the past, changes to the plan, and additional funding that was contributed. Ms. Bennett reviewed the funding projection provided by Boomershine Consulting Group. Attorney Lane reported that Public Act 202 has a provision that requires a peer actuarial study or that plans hire a new actuary. Attorney Lane reviewed the Contract Employees Policy. The chair requested that the policy be discussed at the Joint Retirement Board meeting. Attorney Lane discussed the duty disability re-examination policy that would detail a written procedure and guidelines for Board review. Attorney Lane included some criteria in which a retiree would not be re-examined. It was moved by Trustee Kraus and supported by Trustee Good to approve the Duty Disability Re -Examination Policy. Adopted by the following vote: 6 - 0. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month ending September 30, 2018. It was moved by Trustee Mark Parker and supported by Trustee Kraus to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:09 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 Council Conference Room a.m. 10th Floor, City Hall Lansing, MI September 20, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:37 a.m. Present: Dedic, Good, Kraus, Munroe (8:44), D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington - 9 Absent: 0. Others: Karen E. Williams, Angela Bennett, Finance Department; Eric Hassett, Public Service, Lynne Meade, IBT 243; Attorney Ken Lane (representing the Law Department). It was moved by Trustee Washington and supported by Trustee Mark Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of August 23, 2018. Adopted by the following vote: 8 — 0. It was moved by Trustee Good and supported by Trustee Sanchez-Gazella to approve the Joint Police and Fire Retirement System Board and the Employees' Retirement System Board meeting of August 21, 2018. Adopted by the following vote: 8 — 0 There were no public comments for items on the agenda. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 413. Total deferred: 74. 2 death(s) Calvin Baxter, (retired 8/15/2017 — T243) died 9/10/2018, age 70, no beneficiary; Harold Armour, (retired 6/11/2018 — T243, Supervisory) died 8/14/2018, age 70, spouse to receive 100%. Refunds made since the last regular meeting amounted to $23,247.87. Retirement allowances paid for the month of August 2018, amounted to $1,918,656.26. Total retirement checks printed for the ERS System: 918. Total Retirement checks printed for both systems: 1659. Eligible domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees Retirement System Regular Meeting of September 20, 2018 Page 2 It was moved by Trustee Good and supported by Trustee Kraus to approve the following requests for regular age and service retirements: Lizabeth A. Estlund Olson, (Management Services — T243), 10 years, 4 months of service credits, age 58, effective 10/1/2018. Adopted by the following vote: 8 — 0 There were no requests for duty disability retirements. There were no requests for non -duty disability. It was moved by Trustee M. Parker and supported by the Trustee Kraus to approve the following request for Refund of Accumulated Contribution: Denis Prisk, Police (Civilian), T243 Supervisory, not vested, $8,671.79 Adopted by the following vote: 8 - 0 It was moved by Trustee Mark Parker and supported by Trustee Kraus to excuse Trustee Munroe from the September Employees' Retirement System meeting. Adopted by the following vote: 8 — 0. It was moved by Trustee Washington and supported by Trustee Good to excuse Trustee Dedic and Trustee Munroe from the Employees' Retirement System August meeting. Adopted by the following vote: 8 - 0. Trustee Mark Parker provided an oral report regarding the Asset Consulting Group (ACG) education forum, September 12, 2018. Trustee Parker stated that there were two speakers and the sessions included an actuarial review and economic outlook. He discussed the emergence of huge tech stocks. He reviewed the late cycle economic indicators. Trustee Tammy Good gave an oral report regarding the ACG Education Forum. She enjoyed the actuary who presented and the historical economic trends. Trustee Dennis Parker also attended the ACG and reviewed the effect techs on economies. Karen Williams updated the Employees' Retirement System Board regarding the following conferences: MAPERS Fall Conference, September 22-25, 2018; NCPERS Public Safety Conferences, October 28-31; IFEBP Annual Conference, October 14-17, 2018. Employees Retirement System Regular Meeting of September 20, 2018 Page 3 It was moved by Trustee Dedic and supported by Trustee Mark Parker to allow any member to attend the IFEBP Annual Conference. Adopted by the following: 8 — 0. Mr. Hassett, employee in Public Service Department spoke to the Employees' Retirement System Board regarding his eligibility for retirement. Mr. Hassett stated that he has worked for the City of Lansing 30 years, with 25 years as a full-time permanent employee. Mr. Hassett transferred from UAW to Teamster after eighteen months as a full-time hire. At the time of the transfer, he signed a document forfeiting his service credits. He believes that the eighteen months should be used for eligibility purposes to allow him to retire. Mr. Hassett believed that he has documentation that states eligibility was based on years of service. In 2012, Mr. Hassett requested a legal opinion to include the 18 months for calculation in which Attorney Ken Lane opined that the UAW time could not be used for retirement purposes. Trustee Sanchez-Gazella indicated to the Employees' Retirement Board that Mr. Hassett is in a four -step grievance before the Human Resources Department. Ms. Lynne Meade, IBT 243, indicated that she believed that Mr. Hassett was the only member who had this particular issue. Attorney Lane indicated that he prepared a legal opinion that referenced the agreement that Mr. Hassett signed forfeiting his UAW service credits. Attorney Lane explained that if there were new documents or material available that he would be willing to review. Trustee Washington inquired if it was appropriate for trustees should review the issue with a pending grievance before the Human Resources Department. Attorney Lane also recommended that the Board discussion be delayed until the grievance process is completed. Attorney lane discussed 292.15 restoration of service credits that discusses a member who leaves the City and comes back within four years. It indicates that the Board can restore service credits in special circumstances. Trustee Schor also agreed that the member should complete the grievance process in accordance with the collective bargaining agreement. Trustee Dennis Parker indicated that the Employees' Retirement Board could not overrule the Ordinance or collective bargaining agreements. Attorney Lane reviewed the letter to inform MMRO of the Board's decision regarding the Medical Director request for proposal. Attorney Lane will prepare the letter for the chairperson's signature. Attorney Lane discussed the duty disability re-examination policy that would detail a written procedure and guidelines for Board review. Attorney Lane included some criteria in which a retiree would not be re-examined. He requested that members review the policy. Trustee Dennis Parker inquired if the policy was needed because the Employees' Retirement System had a higher standard for approval. He asked if it would be a waste of resources to send duty disability retirees for re-examination each year. Trustee Kraus expressed concern that the duty disability re-examination policy should be in place as a part of the Board's due diligence. Trustee Mark Parker indicated the Employees' Retirement System should be slightly different from the Police and Fire Retirement System due to the types of disabilities. Trustees Good, Sanchez-Gazella, and Washington concurred with Trustee Kraus that the duty disability re-examination policy should be in place. Attorney Lane indicated that Trustee Schor requested that the duty disability re- examination policy reference the current policy that allows the Board to hire a private investigator in cases of fraud. Attorney Lane also requested that the Employees' Retirement System Board review the contract employee policy at the next meeting. Ms. Bennett provided an update of the Employees Retirement System Corrective plan. Ms. Bennett stated the Treasury Department provided further information and clarification regarding the process. The corrective plan would be submitted in November upon approval by the City Council. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month ending August 30, 2018. It was moved by Trustee Good and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 9 — 0. The meeting adjourned at 9:19 a.m. Minutes approved on Dennis R. Parker, Chairperson Angela Bennett, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Council Conference Room a. m. 10th Floor, City Hall Lansing, MI November 8, 2018 Thursday, 8:30 The Board met in regular session and was called to order at 8:33 a.m. Present: Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Washington - 8 Absent: Schor Others: Karen E. Williams, Angela Bennett, Finance Department; Greg Stump, Boomershine Consulting Group; Ronald Kruger, retiree; Attorney Ken Lane (representing the Law Department). It was moved by Trustee Good and supported by Trustee Mark Parker to approve the Official minutes of the Employees' Retirement System Regular Meeting of October 18, 2018. Adopted by the following vote: 8 — 0. There were no public comments for items on the agenda. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 415. Total deferred: 74. 1 death(s) Freddie Harris (retired 8/1/1992 — T243 Supervisory, died 11/5/2018, no beneficiary. Refunds made since the last regular meeting mounted to $1,413.15. Retirement allowances paid for the month of October 2018, amounted to $1,945,179.45. Total retirement checks printed for the ERS System: 919. Total Retirement checks printed for both systems: 1661. Eligible domestic relations orders received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Good and supported by Trustee Dedic to approve the following requests for regular age and service retirements: Brad D. Lance, (Public Service — UAW), 22 years, 1 month of service credits, age 59, effective 12/1/2018. Tammie Rogers, (Public Service — T243), 15 years, 3 months of service credits, age 58, effective 12/28/2018. Jeffrey L. Stevens, (Public Service — UAW), 13 years, 5 months of service credits, age 58, effective 11/1/2018 (from deferred) Adopted by the following vote: 8 — 0 Employees Retirement System Regular Meeting of November 8, 2018 Page 2 Karen Williams reported that Applicant #2018 — E1108 submitted a letter requesting to be evaluated for Duty Disability. Trustee Dennis Parker referred the duty disability to the disability subcommittee. It was moved by Trustee Kraus and submitted by Trustee Mark Parker to recess to allow the disability subcommittee to meet. Adopted by the following vote: 8 — 0. The meeting recessed at 8:37 a.m. The meeting resumed at 8:39 a.m. It was moved by Trustee Good and supported by Trustee Sanchez-Gazella to send Applicant #2018 —E1108 to the medical director for evaluation. Adopted by the following vote: 8 — 0. There were no requests for non -duty disability. Trustee Dedic provided an oral report regarding the IFEBP Conference. Trustee Dedic attended sessions that had a global outlook. He reviewed sessions that discussed the global economics, future technology and life style changes. He discussed a session regarding the impact of marijuana being approved as recreational in different states. Trustee Dedic attended a session regarding how pension plans compared to those in other countries. He also discussed that there was a legal update regarding thee Janus Supreme court ruling. Public employers do not have to pay union dues because of free speech. The ruling may have implications for pension system. Mark Parker provided an oral report regarding the MAPERS Fall Conference. He discussed Public Act 202, actuarial workshop that discussed 30 -year open amortization. Trustee Parker stated that MAPERS had good speakers in the real estate/ fixed income review. He also discussed the activism within the larger municipal pension boards such as CALPERS that reduced CEO salaries. Karen Williams reported the Board's membership annual dues: IFEBP-$525; MAPERS- $200; NCPERS-$250. It was moved by Trustee Dedic and supported by Trustee Mark Parker to approve the payment for the annual membership dues for IFEBP, MAPERS, and NCPERS. Adopted by the following vote: 8 — 0. Mr. Ronald Kruger, ERS retiree, addressed the Board and expressed concern regarding the health of the retirement system. Employees Retirement System Regular Meeting of November 8, 2018 Page 3 Trustee Dennis Parker explained that since 1998, there was 165 in the plan, all the bills have been paid, and 30 million in investment gains have been added to the fund. He further explained that the Mr. Stump, the Board's Actuary would provide detailed information about the health of the plan during the valuation presentation later in the meeting. Attorney Ken Lane distributed copies of the duty disability re-examination policy Ms. Bennett discussed the corrective action plan was reviewed and approval by the City Council. The plan was filed with the State of Michigan. Ms. Bennett stated that the corrective action included the Segal study, Financial Health Team study, information on what has been done in the past, changes to the plan, and additional funding that was contributed. Ms. Bennett that if the corrective plan were approved, the plan would be reviewed annually. Attorney Lane indicated that the State of Michigan Municipal Board was scheduled to review the corrective action plans at its December meeting. Karen Williams distributed a meeting schedule for 2019 for the Employees' Retirement System Board. She also distributed a list of the 2019 Education Conferences. The Employees' Retirement Board amended its May meeting to May 16, 2019. It was moved by Trustee Kraus and supported by Trustee Good to approve the 2019 meeting schedule with the amended dates. Adopted by the following vote: 8 — 0. Mr. Greg Stump, Boomershine Consulting Group, presented the Employees' Retirement System actuarial valuation for the period ending December 31, 2017. Mr. Stump discussed the summary of plan assets, the investment earnings covered pension payments. There are over $200 million in the fund and with the yearly city contributions; the fund is sustainable long term. Mr. Stump reviewed the discussed the smoothing of value assets. Mr. Stump explained that an actuarial experience loss means that the plan assets did not achieve the 7.25% interest rate, even though the assets may have an investment gain for the year. Mr. Stump discussed the State of Michigan uniform assumption and reviewed figures based on the return assumption of 7%. Mr. Stump provided a summary of the investment performance, funding recommendations, funding progress and assumption changes. He reviewed the healthcare reserve. Mr. Stump discussed the participant summary, reviewed the demographics and actuarial liability. Mr. Stump reviewed the importance of preparing an experience study every five years. Mr. Stump discussed the development of the Employer Contributions. He reviewed the normal (benefit) cost based on the current assumptions. The numbers were calculated as a percentage of pay. He reviewed the amortization policy, which is now at 24 years of 30 year closed amortization. Mr. Stump reviewed the long-term projections of funding and contributions. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month ending October 31, 2018. It was moved by Trustee Kraus and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 8 — 0. The meeting adjourned at 9:30 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 Council Conference Room 10th Floor, City Hall Lansing, MI December 20, 2018 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:33 a.m. Present: Dedic, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Schor (8:39) Washington - 8 Absent: Good Others: Karen E. Williams, Angela Bennett, Finance Department; Eric Hassett, employee; Ronald Kruger, retiree; Attorney Ken Lane (representing the Law Department). It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Official minutes of the Employees' Retirement System Regular Meeting of November 8, 2018. Adopted by the following vote: 7 — 0. It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Official minutes of the Employees' Retirement System Board and the Police and Fire Retirement System Board Joint meeting of November 8, 2018. Adopted by the following vote: 7 — 0. Mr. Eric Hassett, Teamster 243 employee provided a statement to the Board regarding his request for his UAW service credit be restored so that he could retire. He stated that he was hired in 1993 and was originally in the Employees Retirement System. Mr. Hassett stated that about 18 months later, he accepted a job as a Teamster 243. At the time, the Teamster 243 was not a part of the Employees' Retirement System plan; the union had a defined contribution plan. He purchased service credits when the Teamsters returned to the Employees Retirement System in 2003. Employees Retirement System Regular Meeting of December 20, 2018 Page 2 Mr. Hassett stated that he received a Frequently Asked Questions Document that stated his time with the City would be used for his eligibility. Mr. Hassett has received a City Attorney's opinion that his time spent in the UAW was forfeited upon moving the Defined Contribution plan. Mr. Hassett is requesting no benefits for the 18 months; he wishes to use the time for eligibility to retire. Attorney Lane inquired about the document Mr. Hassett stated that he received at the time he moved to Teamster 243. Mr. Hassett indicated that the met with Human Resources regarding the move to Teamster 243 and he thought the only issue was regarding contributions. He was told he could not receive the UAW contributions to invest. Trustee Sanchez-Gazella reported that Mr. Hassett had a grievance that was reviewed by the Human Resources Department. Trustee Sanchez-Gazella stated that she took a considerable amount of time and reviewed the City Attorney's opinions and letter that outlined what Mr. Hassett was accepting. Trustee Sanchez-Gazella concurred with the City Attorney's office and Mr. Hassett's grievance was denied. The next step would be arbitration. Trustee Dennis Parker with agreement from the Employees Retirement System Board moved the Eric Hassett request for eligibility to retiree up on the agenda for discussion. Attorney Lane summarized that this issue was presented to the Employees' Retirement System Board in 2012. Mr. Hassett signed an agreement that his UAW time could not be used for retirement purposes in the Employees' Retirement System. Attorney Lane reviewed that the UAW were not making contributions the Employees' Retirement System at the time Mr. Hassett moved to Teamster 243. Attorney Lane reviewed the document that were signed at the time in 1993 and opined that the UAW time could not be used for any retirement purpose. Attorney Lane read the portion of the Frequently Asked Question document that stated, "Any conflicts between the document and the provisions of labor agreement and the City Ordinance will be governed by the provisions of the labor agreement and the City Ordinance". Attorney Lane opined that the Frequently Asked Question document does not supersede the labor agreement foregoing his service credits and eligibility within the UAW. It does not change the opinion that Attorney Lane provided in 2012. Trustee Kraus inquired if the Employees Retirement System Board has the authority to make a decision that influences the retirement of an active employee. Employees Retirement System Regular Meeting of December 20, 2018 Page 3 Attorney Lane stated that the Board has the authority under the Retirement Ordinance to take action regarding service credits in special circumstances or if errors had been made. The Board would make recommendations to the City Council. Trustee Mark Parker expressed concern that employees who received the Frequently Asked Questions document would believe that the all City time would count toward retirement. Trustee Mark Parker thought the document he signed was misleading. Trustee Mark Parker stated that he thought the cost to allow Mr. Hassett to use his UAW time would be negligible. Trustee Schor expressed concern that Employees Retirement System Board taking action would interfere with the grievance process that has been outlined in the Collective Bargaining Agreement. Trustee Sanchez-Gazella stated the Mr. Hassett issues was reviewed through the Step 4 process. Attorney Lane recommended that he could review all the documents again. He would provide his opinion and all the documents to Trustees for Board review. Trustee Washington agreed that the Board should review all the documentation but to not delay it past next month. Trustee Munroe stressed the importance of the Board for due diligence. It was moved by Trustee Washington and supported by Trustee Munroe to have Attorney Lane collect and review all the documents regarding Mr. Hassett's request and then provide that information with the legal opinions to all Trustees prior to next month's meeting. Adopted by the following: 8 — 0 Employees Retirement System Regular Meeting of December 20, 2018 Page 4 Secretary's report: 7 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 420. Total deferred: 74. 4 death(s) Gary Carrick (retired 8/16/2002 — T243), died 11/29/2018, beneficiaryto receive 100%; Frank Cena Sr. (retired 1/21/1992 — T243 Supervisory), died 11 /19/2018, spouse to receive 100%; Joseph Davidowicz (retired 3/1/2000 — UAW), died 11/20/2018, spouse to receive 100%; Nona M. Mix (retired 10/15/2001 — T243), died 11/1/2018, age 82, no beneficiary. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of November 2018, amounted to $1,948,317.37. Total retirement checks printed for the ERS System: 920. Total Retirement checks printed for both systems: 1664. Eligible domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to approve the following requests for regular age and service retirements: Vince D. Cantrell, (Planning & Neighborhood Development — T243), 18 years, 11 months of service credits, age 62, effective 1/3/2019. Julia M. Cherry, (District Court — District Court Non Represented), 25 years, 11 months of service credits, age 73, effective 1/2/2019. Christopher B. Johnston (Public Service — T243), 18 years, 4 months of service credits, age 81, effective 1/15/2019 Daniel F. Perry, (Public Service —UAW), 21 years, 5 months of service credits, age 58, effective 1/7/2019. Guy Pierce (Public Service — T243), 20 years, 1 month of service credits, age 58, effective 12/31/2018. Adopted by the following vote: 8 — 0 Ms. Robin Edmondson submitted a letter requesting consideration regarding her Final Average Compensation. Employees Retirement System Regular Meeting of December 20, 2018 Page 5 Robin Edmondson was hired on October 1978 as a full-time employees and a member of the Employees' Retirement System. In 1986, she transferred to a part-time position. She had eight years of services, was vested and her pension was deferred. She became a full- time employee again in November 2003. The City Attorney's office opined that her Final Average Compensation for her deferred pension should be calculated on her highest two years of wages from the time period of 1978-1986. Attorney Ken Lane reviewed the letter submitted by Ms. Edmondson and opined that while she was a part-time employee, she was not a member of the Employees' Retirement System. Her first pension was deferred when she transferred to part-time employment. Attorney Lane stated that there would be two separate calculations: one for the deferred and for the current pension. Trustee Dedic inquired if the Board was considering two separate questions. One questions would be the approval of the retirements. The other questions would be final average compensation. Attorney Lane clarified that the City Attorney's office has stated that the first pension was deferred. Only the current pension would be based on the current final average compensation. Attorney Lane opined the Board action would be to approve as presented if the Board agreed that the City Attorney's office opinion. Trustee Kraus stated that Ms. Edmondson is eligible for retirement with age 58 and 8 years of service credits for both pension. Trustee Kraus inquired if the pensions had two separate calculations with the appropriate service credits and multiplier and final average compensation for each specific period. Ms. Williams confirmed that the two pensions were calculated separately. One calculation was done for the deferred pension with the final average compensation at that time. Ms. Edmondson's current pension will be calculated using her most recent multiplier, service credits and final average compensation. Employees Retirement System Regular Meeting of December 20, 2018 Page 6 Attorney Ken Lane indicated that distributed a draftforthe Employees Retirement System Board of Trustees projected budget. Attorney Lane indicated that the final numbers for the year are not available yet. He requested that the Board review the draft for approval at the January meeting. Karen Williams reported that Applicant #2018 — E1108 is gathering information for submission to the medical director to be evaluated for Duty Disability. There were no requests for non -duty disability. Karen Williams reported that Mr. Zwalee Mixaykham was approved for duty disability. The Retirement office sent out paperwork for completion. The retirement office had not received a response. The retirement office was informed by the family, that Mr. Mixaykham was incapacitated due to his disability, and could not sign his paperwork. The family did not get a power of attorney before his disability. Ms. Williams spoke with Mr. Mixaykham's son, Abel, who indicated that his father wanted to choose option A to leave his benefits to his spouse at the time of his death. Ms. Williams contacted the chairperson and legal counsel for direction. Attorney Lane indicated that Mr. Abel Mixaykham had been acting on behalf of his father during the disability process and could sign the paperwork. Ms. Williams indicated that she received paperwork sign by Mr. Abel Michaykham, but has since heard that Mr. Mixaykham has died. Trustee Kraus inquired who is handling the estate. Trustee Dedic indicated that the family is from Laos and the spouse had limited English. Trustee Dedic was not certain, but believed the son would be handling the estate. Attorney Lane indicated if the Board does not have any issue with the Option Adesignation and with the son signing the paperwork, the Board need not take further action. Karen Williams distributed the 2017 Employees' Retirement System Actuarial Valuation for approval. Mr. Greg Stump reviewed the valuation at the last month's meeting. It was moved by Trustee Mark Parker and supported by Trustee Washington to approve the Employees' Retirement System Actuarial Valuation for the period ending December 31, 2017. Adopted by the following vote: 8 — 0. Ms. Bennett reviewed the Employees' Retirement Action Plan was filed with the State of Michigan. The City of Lansing has not been contacted by the State of Michigan Municipal Board review of its corrective action plans. Attorney Ken Lane reviewed the Contract Employees Policy. It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Employees' Retirement System Contract Employees Policy. Adopted by the following vote: 8 — 0. Ms. Williams reviewed the Monthly Investment Report and the Securities Lending report for the month ending November 30, 2018. It was moved by Trustee Dedic and supported by Trustee Mark Parker to adjourn the meeting. Adopted by the following vote: 8 — 0. The meeting adjourned at 9:30 a.m. Minutes approved on Angela Bennett, Secretary Employees' Retirement System Dennis R. Parker, Chairperson Employees' Retirement System