HomeMy WebLinkAbout2019 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting January 24, 2019
City Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:41 a.m.
Present:, Dedic, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella— 6
Absent: Trustee Schor, Washington
Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Joseph
Abood, Law Department; Denise Estee, retiree; Lynne Meade, Teamster 243;
Eric Hassett, employee.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
Official Minutes of the Employees' Retirement System Board Regular Meeting of
December 20, 2018.
Adopted by the following vote: 6 - 0
Denise Estee, City of Lansing Teamster retiree, had public comments for items on the
agenda. Ms. Estee retired in 2005. Ms. Estee stated that in June 2014, several retirees
came to the Employees Retirement System Board to dispute the calculated of their
health care premiums. At that time, the retiree group were informed that the
Employees Retirement Board does not govern health care and that the Administration
did. The retiree group took their complaint to the Internal Auditors, and the Way and
Means Committees of 2014, 2015, 2016, 2017. In 2018, City Attorney Janene McIntyre
and acting Human Resources Director provided a report that agreed with the retiree
group. The City Council requested that Administration to supply documents to back up
their premium costs.
Ms. Estee stated that retirees under the same contract were paying different rates, with
some retirees following actives, and others having no premium. Ms. Estee states that
no legal documents to back up their premium costs. Ms. Estee requested that
Employees Retirement System Board to request the document from the City
Administration that supports the dollar amount taken for her premiums from her pension.
Ms. Estee believes that she is owed a refund of $8,679.49 from 2010-2018.
In March 22, 2019, the retiree complaint was reviewed by the current administration and
was denied.
Employees Retirement System
Regular Meeting of January 24, 2019
Page 2
Trustee Dennis Parker stated that retiree health care is out of the Board's purview and
the health care is determined under the collective bargaining agreement. The
Employees Retirement System Board governs the pension benefit. The Board does not
determine what payroll deduction are made.
Attorney Abood provided background of the retiree complaint that was reviewed by the
City Attorney's Office. Attorney Abood reported that a privileged and confidential
memorandum by Attorney Mcintyre to the administration was released to the public.
Attorney Abood while acting as City Attorney was requested to review the information
and provide an opinion. Before his opinion was delivered, Attorney Smiertka became
the new City Attorney. Attorney Abood provided his findings to the Attorney Smiertka
for review and then the opinion was delivered to City Council. Mr. Robert Engel filed a
grievance to the State Bar against Attorney Smiertka for delivering his opinion. The
grievance was dismissed by the State Bar of Michigan.
Ms. Lynne Meade stated that the Collective Bargaining Agreement phrase "retirees
follows actives" was included to ensure the coverage level is not less than what actives
receive. The contract makes no mention of premiums and was not negotiated with the
Teamster.
The Employees' Retirement System Board acknowledged the City Council appointment
of Jodi Washington to the Board for 2019.
Secretary's Report. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1
retired. Total active membership: 427. Total deferred: 75. 1 death(s), Oakley Lyons
(retired 6/15/2002 — UAW), died 12/27/2018, age 66, no beneficiary. Refunds made
since the last regular meeting amounted to $0.00. Retirement allowances paid for the
month of December 2018, amounted to $1,944,789.92. Total retirement checks printed
for the ERS System: 920. Total Retirement Checks printed for both systems: 1664.
Eligible domestic relations orders received: 0. Domestic relations orders pending: 1.
Eligible domestic relations orders certified: 0.
Karen Williams reported that the Retirement Office received a letter from Julia M. Cherry
requesting to rescind her application request to retire.
It was moved by Trustee Mark Parker and Trustee Dedic to approve the application
withdrawal of the request for regular age and service for Julia M. Cherry.
Adopted by the following vote: 7 — 0.
Employees Retirement System
Regular Meeting of January 24, 2019
Page 3
It was moved by Trustee Dedic and supported by Trustee Mark Parker to approve the
following requests for Regular Age & Service Retirement:
Jill Rhode, (Finance/NonBargaining), 9 years, 2 months of service credits, age 58,
effective February 1, 2019 (From Deferred)
Toni Thomson( Finance/T243), 22 years, 6 months of service credits, age 58, effective
December 18, 2018 (NonDuty Death).
Charles Wolbeck, (Public Service/UAW), 22 years, 2 months of service, age 58, effective
February 16, 2019.
Ms. Williams explained the Employees Retirement System Ordinance provision for
NonDuty Death.
Adopted by the following vote: 6 — 0
Ms. Williams reported that Applicant #2018 — E1108 has submitted her medical records.
The Retirement Office has arranged an appointment with the Medical Director for
evaluation for duty disability.
There were no requests for Non Duty Disability.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to excuse
Trustee Jody Washington from the January Employees' Retirement System Board.
Adopted by the following vote: 6 -0.
Karen Williams reported that the MAPERS One Day Conference would be held March
1, 2019. Members who wished to attend should contact the Retirement Office to
register.
Attorney Abood reported that the Retirement Ordinance was under review by the City
Attorney's Office. The City Attorney's Office has been trying to harmonize the
Retirement Ordinance with the various collective bargaining agreements.
The Employees' Retirement System Board tabled the discussion regarding 2019 budget
until trustees are able to review previous years' numbers.
Attorney Abood reported that the budget is not required to be approved in January.
Employees Retirement System
Regular Meeting of January 24, 2019
Page 4
It was moved by Trustee Munroe and supported by Trustee Kraus by unanimous vote to
reconfirm and approve Dennis Parker as chairperson and Mark Parker as vice
chairperson for the Police and Fire Retirement System Board for 2019.
Adopted by the following vote: unanimous.
Karen Williams requested that trustees should contact the Retirement Office or the
chairperson for subcommittee memberships assignments.
Karen Williams reported that the Employees' Retirement System has received a memo
from Angela Bennett detailing the fiscal year pension contribution. The 2018 pension
contribution was 10,380,932 was transferred December 28, 2018 by the City to the
Employees' Retirement System. The total was actuarially calculated amount plus
$500,000 that was appropriated by City Council.
It was moved by Trustee Kraus and supported by Trustee Munroe to accept the 2018
Employees' Retirement System pension contribution.
Adopted by the following vote: 6 — 0
Karen Williams reported that Gabriel Roeder Smith has sent a proposal to update
Minute Master. The cost would not exceed $3,100.
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to
approve appropriations for the Minute Master update.
Adopted by the following vote: 6 — 0.
The Employees Retirement System discussed the Eric Hassett request for eligibility to
retire.
Attorney Abood has indicated that Attorney Lane was reviewing the documents and will
present his opinion at the February meeting.
Trustee Dennis Parker stated that the Board discussed providing a recommendation to
City Council for a determination.
Trustee Sanchez-Gazella indicated that the grievance was denied and the 45 -day
period for arbitration had expired.
Attorney Abood stated an opinion from Attorney Lane that the section to restore service
credit in special circumstances does not apply to this situation.
Employees Retirement System
Regular Meeting of January 24, 2019
Page 5
Trustee Mark Parker provided a review of what the Employees Retirement System
Board had discussed. He referred to the Frequently Asked Questions that were
provided to employees in 2004 that stated members would have all full time years of
service counted for eligibility.
Attorney Abood stated that it was his understanding that Frequently Asked Questions
document could not be used to supersede the release agreement signed by Mr. Hassett
or supersede the Retirement Ordinance or Collective Bargaining agreement. Attorney
Abood recommended that the Board review the documents and receive Attorney Ken
Lane opinion before making a decision.
Mr. Hassett indicated that he used his own money to buy in to the Employees
Retirement System in 2004.
Trustee Kraus inquired how long City Council would take to act upon the issue.
Ms. Bennett indicated the items must first be reviewed by the Committee of the Whole,
before referral to the appropriate action. No action will be made the date the item was
placed on the agenda.
Trustee Munroe recommended that the Employees Retirement System have a special
meeting to review documents and consider Mr. Hassett's eligibility.
It was moved by Trustee Munroe and supported by Trustee Mark Parker to have a
special meeting, Wednesday, February 6 at 8:30 a.m. to review documents and discuss
Mr. Eric Hassett's request for eligibility to retire.
Adopted by the following vote: 6 — 0.
The Employees Retirement System Board discussed Mr. Robert Engel's complaint
regarding health care premiums. Mr. Engel provided a request to the Employees
Retirement System to refund his health care premiums of $20,915.08 taken from his
pension check from 2010 -2018. His requested stated that the City Administration has
not legal document to back up their premium charges for healthcare, or that links him
Trustee Kraus inquired if all retirees have the same premiums within the same contract.
Ms. Bennett indicated that retirees after February 20, 2004 follow active employees.
Trustee Kraus clarified her question, asking if a member retired February 19, 2004,
would that retiree follow active employees.
Employees Retirement System
Regular Meeting of January 24, 2019
Page 6
Ms. Bennett stated that employees, who were subject to the collective bargaining
agreement, would follow active employees after the February 20, 2004.
Trustee Dedic stated that the Employees Retirement System Board determined the
pension amount for years of service. The ERS Board does not govern if the City
administration takes out deductions incorrectly, the Board is not responsible for items
after the gross amount has been determined.
The Employees Retirement System Board discussed Mr. Walter Funches, deceased,
option selection.
Karen Williams indicated that the Retirement Office received a letter from the lawyer
representing Mr. Funches's estate. Attorney Fleck indicated that Mr. Funches signed
up for a straight life pension and was told in 2004, that his spouse and children would
continue to receive benefits after his death. Attorney Fleck requested that the
Employees Retirement System review the issue
The Retirement office provided copy of Attorney Fleck's letter and Mr. Funches
application signed in 2004. Mr. Funches application indicated the Straight life option
that was chosen and states it terminates at death.
Attorney Abood reported that he became aware of Mr. Funches's claim when Attorney
Fleck presented it. Attorney Abood gathered all of the supporting documentation
pertaining the Straight Life option and provided it to Mr. Fleck. Attorney Abood spoke
with Attorney Fleck and indicated that there was nothing that could be done because Mr.
Funches and Mrs. Funches had signed off on the application indicating Straight Life
option.
Ms. Angela Bennett updated the Employees' Retirement System regarding the
Corrective Action Plan that had been approved by the State of Michigan. It will be
monitored annually. Each December the system will need to file new form 5572.
Ms. Williams presented the Monthly Investment Report and Securities Lending Report
for the month of April 2015.
It was moved by Trustee Dedic and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 10:02 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Special Meeting
Council Conference Room
a. M.
10th Floor, City Hall
Lansing, MI
February 6, 2019
Wednesday, 8:30
The Board met in regular session and was called to order at 8:38 a.m.
Present: Bennett, Dedic, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella, Schor
(8:49) Washington - 8
Absent: 0.
Others: Karen E. Williams, Finance Department; Eric Hassett, employee; Lynne Meade,
Teamster 243; Attorney Ken Lane (representing the Law Department).
Trustee Bennett indicated that she was acting Treasurer and would be participate in that
capacity for the meeting.
Attorney Lane sent out background documents regarding Mr. Eric Hassett request for
eligibility to retire. Attorney Lane provided an overview of the issue. In 1995, Mr.
Hassett made a decision to transfer from UAW to Teamster. Both unions provided for
pension in different ways, UAW had a defined benefit plan, Teamsters had a defined
contribution plan.
Attorney Lane reviewed that Mr. Hassett requested a legal opinion regarding what
would happen to his time. The City Attorney provided an opinion that if Mr. Hassett
made the transition, the time would be forfeited. An acknowledgement was prepared for
Mr. Hassett to sign in May 1995. Attorney Lane opined that the time was forfeited for all
purposes except the Reciprocal Retirement Act. In 2003, collective bargaining,
Teamster 580 began providing pension through the defined benefit plan. In 2003, a
Frequently Asked Questions was provided to Mr. Hassett. Within the document, there
was a statement that the time in either plan could be used for eligibility. In 2012,
Attorney Lane provided a legal opinion that the time was forfeited based upon the
acknowledgement that was signed in 1995.
Mr. Hassett filed a grievance regarding the issue. The grievance was denied and the
decision had not been appealed.
Employees Retirement System
Regular Meeting of February 6, 2019
Page 2
Attorney Lane provided options for Mr. Hassett. He stated that Mr. Hassett could
request that his application for retirement be placed on the agenda for Board action.
Attorney Lane stated within the Ordinance 292.15 there is a section that discusses
special circumstances for restoration of service credit and allows the issue to be
forwarded to City Council for review.
Attorney Lane distributed a new legal opinion that re -affirmed his 2012 opinion.
Trustee Dennis Parker indicated that Mr. Hassett was only requesting eligibility not
pension benefit. He stressed that the 2004 Frequently Asked Question document
stated that the time in either plan could be used for eligibility. Trustee Parker indicated
that Mr. Hassett used his money to purchase into the defined benefit plan.
Attorney Lane indicated the Frequently Asked Questions was not a legal document.
The Board members discussed who could have drafted the Frequently Asked
Questions.
Trustee Kraus stated that Mr. Hassett purchased back in the defined benefit pension
plan as of the date he transferred into the Teamster position. Trustee Kraus that the city
documents indicate that May 1995 was his date for retirement purposes.
Trustee Mark Parker felt that the Frequently Asked Question document was misleading.
Trustee Mark Parker indicated that document stated that the time in either plan could be
used for eligibility to retire. '
Attorney Lane opined that the Frequently Asked Question would supersede the
collective bargaining or the acknowledgement that Mr. Hassett signed.
Trustee Washington expressed that the Board members should only consider the
documents before them, and not speculate on actions that happened in previous years.
Trustee Washington expressed concern that the city service would not be counted
because he worked the time. Trustee Washington believes that if he worked 25 years,
then he should be allowed to retire.
Trustee Mark Parker stated the Frequently Asked Question document was used by the
employees to make decisions, and that all city service would be used for eligibility.
Employees Retirement System
Regular Meeting of February 6, 2019
Page 3
Ms. Lynne Meade indicated that Mr. Hassett always thought his years of service within
the UAW would be used for eligibility. Ms. Meade indicated that Mr. Hassett bought
service credits into the defined benefit plan to make himself whole.
Attorney Lane opined that the Frequently Asked Questions could not be used as a
legally binding document in this case.
Trustee Bennett believed that the collective bargaining, the acknowledgment Mr.
Hassett signed and the City Attorney's opinion had more legal weight than the
Frequently Asked Questions. She stated the Frequently Asked Questions are generally
not considered as the source material. Trustee Bennett requested that the Board take
time to read the legal opinion prepared by Attorney Lane.
Trustee Dedic stated Mr. Hassett's request would not be harmful to the City, and not
harmful to the pension system. Trustee Dedic stated that the Retirement Ordinance
provides the ability for the Board to amend the problem. Trustee Dedic believed that
the acknowledgement was not clear in indicating that the time would not be used for
eligibility.
Trustee Bennett clarified that there would be a cost to the pension system in that Mr.
Hassett would allow for earlier draws from the system that were not accounted for
based on the documentation.
Trustee Washington does not believe the acknowledgement was not clear and believes
the cost to the system would be insignificant.
Trustee Kraus stated that it was important to perform its due diligence and discuss the
facts before making a decision. Trustee Kraus indicated that Mr. Hassett should submit
an application for retirement that could be considered by the Board.
Mr. Hassett indicated that he believed that he was the only person in this situation.
Trustee Munroe requested information regarding the Retirement Ordinance 292.15
option.
Attorney Lane stated that the Retirement Ordinance allows the Board to forward the
issue to City Council for review for special circumstances regarding the restoration of
service credits.
Employees Retirement System
Regular Meeting of February 6, 2019
Page 4
Trustee Washington called the question.
It was moved by Trustee Mark Parker and supported by Trustee Kraus that the
Employees Retirement System Board confirm that Mr. Hassett has eligibility to retire for
all of his full time service with the City, If the City does not feel that the Board does not
have the authority to make this decision, then the item should be moved to City Council.
Trustee Marker Parker accepted a friendly amendment to place Mr. Hassett request for
his age and service retirement on the February regular meeting agenda,
Trustee Dedic inquired if legal counsel believed that the Board has the authority to
make a decision on the eligibility.
Attorney Ken Lane indicated the Board does have the ability to correct errors, but it
does not have the authority to approve the retirement without it being listed on the
agenda.
Motion was approved: 5- 0.
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 9:48 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES.
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting
Council Conference Room
a. M.
10th Floor, City Hall
Lansing, MI
February 21, 2019
Thursday, 8:30
The Board met in regular session and was called to order at 8:37 a.m.
Present: Bennett, Dedic, Kraus, Munroe (9:05), D. Parker, M. Parker, Sanchez-Gazella,
Schor (8:40) - 8
Absent: Washington
Others: Karen E. Williams, Angela Bennett, Finance Department; Eric Hassett,
employee; 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 January 24, 2019.
Adopted by the following vote: 6 — 0.
Attorney Ken Lane reported that the Employees Retirement System requested that legal
counsel review if the Board had authority to approve the retirement of Mr. Eric Hassett.
Attorney Lane on behalf of the City Attorney's office that the ERS Board did not have
the authority to confirm Mr. Hassett's retirement eligibility through use of the UAW time
or approve Mr. Hassett's retirement. He stated that he prepared a memo that would
outline the Retirement Ordinances section that re -affirm his opinion that was distributed
at the special meeting.
Attorney Lane indicated that he did researched the Retirement Ordinance regarding the
Board's equitable authority. He discussed Section 292.46 that detailed the correction of
errors and Section 292.12 that detailed the restoration of credits service in certain
cases.
Attorney explained that 'if any change or error in the records results in any member,
retirant or beneficiary receiving from the retirement system more or less than he or she
would been entitled to receive had the records been correct, the Board of Trustees shall
correct such error, and as far as practical, shall adjust the payment in such a manner
that the actuarial equivalent of the benefit to which such member, retirant or beneficiary
was correctly entitled shall be paid.
Employees Retirement System
Regular Meeting of February 21, 2019
Page 2
Secretary's report:
7 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total
active membership: 434. Total deferred: 75. 1 death(s) Bert R. Queen (retired
7/7/1993 — T580 CTP), died 1/27/2018, no beneficiary. Refunds made since the
last regular meeting mounted to $0.00. Retirement allowances paid for the
month of January 2019, amounted to $1,955,604.98. Total retirement checks
printed for the ERS System: 923. Total Retirement checks printed for both
systems: 1667. Eligible domestic relations orders received: 0. Domestic
relations orders pending: 0. Eligible domestic relations orders certified: 1.
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the
following requests for regular age and service retirements:
Julia M. Cherry, (District Court — District Court Non Represented), 26
years of service credits, age 73, effective 2/22/2019.
Ernestine M. Cruz (Police/Civilian — UAW), 21 years. 10 months of service
credits, age 66, effective 3/1/2019
Troy M. Swisher (Public Service — UAW Full Time), 26 years, 4 months of
service credits, age 56, effective 3/30/2019.
Adopted by the following vote: 6 — 0
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
following requests for regular age and service retirements based upon Section 292.46,
and the Board's prior motion to confirm his eligibility for retirement:
Eric Hassett (Public Service — T243 Supervisory), 23 years, 11 months of
service credits, age 53, effective 3/15/2019.
Trustee Schor inquired to legal counsel if Mr. Hassett had enough qualified service time
to retire.
Attorney Lane opined that Mr. Hassett does not have enough time. He stated the Board
would be disagreeing with his opinion.
Employees Retirement System
Regular Meeting of February 21, 2019
Page 3
Trustee Dedic stated that at the Employees' Retirement System special meeting, the
Board voted to deem Mr. Hassett qualified to retire. Trustee Dedic indicated that the
Board at this meeting would be voting to approve the retirement.
Trustee Angela Bennett expressed concern regarding the reliability of the Frequently
Asked Question document and giving it equal weight to the legal documents that were
signed that forfeited the UAW time.
Trustee Kraus stated that the Board should state under what section of the Retirement
Ordinance that Mr. Hassett could retire.
Trustee Mark Parker indicated that the Board approved all of Mr. Hassett's city service
for eligibility purposes. The twenty-three years and eleven months would only apply to
pension calculations.
Trustee Dennis Parker and Trustee Kraus inquired about the impact to Mr. Hassett if the
City takes legal action.
Trustee Schor inquired if the Board had made an illegal action. Trustee Schor
expressed concerned that Mr. Hassett signed a legal agreement. Trustee Schor wanted
it reflected that he would vote no to be consistent with his no vote at the special
meeting.
Attorney Lane advised that the Board could approve the retirement using the
Retirement Ordinance 292.46 correction of errors and the action would be legal.
The motion failed 5 - 3.
The Employees Retirement System Board discussed sending the issue to the City
Council for review.
It was moved by Trustee Parker and supported by Trustee Munroe to send Mr.
Hassett's request for eligibility to retire to City Council.
Adopted by the following vote: 7 — 0, 1 abstained.
Attorney Lane provided an explanation of how the provision regarding special
circumstances would work. The referral to City Council would reaffirm or disagree with
the Board's decision.
Employees Retirement System
Regular Meeting of February 21, 2019
Page 4
Mayor Schor expressed concern that the City Council decision would be non-binding.
Mayor Schor indicated that a legislative fix was needed.
Attorney Ken Lane stated that he would provide documents to City Council. Attorney
Lane stated that the provision allows the Board to provide a recommendation to City
Council. Attorney Lane would state in the documentation regarding the Board actions to
approve the eligibility to retire at a special meeting. The Board actions at its regular
meeting was to deny Mr. Hassett's request for retirement. The documentation to
Council would ask to confirm or disagree with the Board's decision. Attorney Lane
opined that City Council would have the authority to right the wrong.
Trustee Dennis Parker inquired if a Retirement Ordinance amendment would be
needed, if the City Council has the authority to right the wrong.
Attorney Lane stated that if the City Council believed the Board acted incorrectly, he
would recommend the Retirement Ordinance be amended.
Mayor Schor stated that he would advocate changing the Ordinance. Mayor Schor
indicated that he does not believe the Ordinance allows for the retirement under the
opinion that was given by the City Attorney's office. Mayor Schor would recommend to
Council, if they believe that Mr. Hassett should be able to retire, that the Ordinance
should be amended.
Trustee Kraus inquired if the Board could provide a recommendation to amend the
Ordinance to City Council. Trustee Kraus suggested that the Ordinance amendment
recommendation be a part of the motion to refer the issue to City Council.
It was moved by Trustee Parker and supported by Trustee Munroe to amend its motion
to send Mr. Hassett's request for eligibility to retire issue to City Council to determine if
the ERS Board acted appropriately. recommends that the Citye City Council rmines Counc Ihat the amendEhe ERSS did act appropriately, the ERS Bo
Ordinance.
Adopted by the following vote: unanimously
Karen Williams reported that applicant #2018 —E1108 had been evaluated by the
medical director. The medical director could not make a final determination because
the applicant had a recent procedure that could affect the disability. The medical
director would like to see the applicant again to determine if the procedure had been
successful.
Employees Retirement System
Regular Meeting of February 21, 2019
Page 5
It was moved by Trustee Bennett and supported by Trustee parker to approve the
following request for refund of accumulated contributions:
Chris Loveall, Teamster 243, not vested, $5,179,17
Adopted by the following vote: 8 — 0.
It was moved by Trustee Dedic and supported by Trustee Mark Parker to excuse
Trustee Washington from the Employees Retirement System Board February meeting.
Adopted by the following vote: 8 — 0.
Ms. Williams reminded members that the MAPERS One Day Conference was
scheduled for March 1, 2019 for those who were interested in attending.
The Retirement Office provided Employees Retirement System for 2017-2018 to
determine if any adjustments needed to be made. The Employees Retirement System
Board reviewed and discussed amendments to the 2019 draft budget. The Board
agreed to increase the allocation for Asset Consulting Group, lower the allocation for
investment fees, and create an administrative account of $5,000.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
2019 Employees' Retirement System Budget with the proposed amendments.
Adopted by the following vote: 8 — 0.
Attorney Lane stated that he would bring copies of the updated approved budget to the
next meeting.
Ms. Williams reported that there was a vacancy on the disability subcommittee.
Trustee Dennis Parker appointed Trustee Kraus to the disability subcommittee.
Ms. Bennett reviewed that the Employees' Retirement Corrective Action Plan was filed
and approved by the State of Michigan. The City of Lansing is required each December
to report to the State of Michigan Municipal Board regarding its implementation of the
plan.
Attorney Ken Lane reviewed the Contract Employees Policy.
Ms. Williams reviewed the Quarterly Investment Report and the Securities Lending
report for the month ending January 31, 2019.
It was moved by Trustee Munroe and supported by Trustee Dedic to adjourn the
meeting.
Adopted by the following vote: 8 — 0.
The meeting adjourned at 9:47 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM AAAI)1 4-6l 1
Regular Meeting
Council Conference Room
a. m.
10th Floor, City Hall
Lansing, MI
-AP-I*?619
Thursday, 8:30
The Board met in regular session and was called to order at 8:xx a.m.
Present: Bennett, Kraus, Munroe, D. Parker, M. Parker, Sanchez-Gazella (9:14), Schor
(8:44), Washington - 7
Absent: Dedic
Others: Karen E. Williams, Finance Department; Attorney Ken Lane (representing the
Law Department).
It was moved by Trustee M. Parker and supported by Trustee Bennett to approve the
Official minutes of the Employees' Retirement System Special Meeting of February 6,
2019.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of February 21,
2019.
Adopted by the following vote: 5 - 0
It was moved by Trustee Bennett and supported by Trustee Mark Parker to approve the
Official Minutes of the Joint Police and Fire Retirement System Board and the
Employees' Retirement System Board Meeting of February 19, 2019.
Adopted by the following vote: 5 — 0.
There were no public comments for items on the agenda.
Employees Retirement System
Regular Meeting of March 31, 2019
Page 2
Secretary's Report:
4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total
active membership: 438. Total deferred: 75. 2 death(s) James M. Crosby
(retired 11/5/2002 — UAW), died 3/11/2019, no surviving beneficiary; Raymond
Watson (retired 5/3/1988 — T243), died 2/26/2019, spouse to receive 50%.
Refunds made since the last regular meeting mounted to $0.00. Retirement
allowances paid for the month of February 2019, amounted to $1,955,566.14.
Total retirement checks printed for the ERS System: 927. Total Retirement
checks printed for both systems: 1672. Eligible domestic relations orders
received: 0. Domestic relations orders pending: 0. Eligible domestic relations
orders certified: 0.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
request for regular age and service retirement:
Melodie Grables (Police/Civilian — T243 CTP), 15 years, 5 months of service
credits, age 60, effective 4/1/2019
Richard Monti (Public Service - UAW Full Time), 20 years, 3 months of service
credits, age 58, effective 4/1/2019.
Lisa Smith -Addis (Public Service — T243 CTP), 8 years, 3 months of service
credits, age 58, effective 4/1/2019. (From Deferred)
Adopted by the following vote: 7 -0.
Attorney Ken Lane updated the Board that the Mr. Hassett's request for retirement was
denied last month. The Employees Retirement System Board referred the matter to the
City Council for review. The City Attorney provided an opinion that 292.15 applied to
special circumstances and did not allow the City Council to approve the retirement. The
City Attorney outlined the steps for a memorandum of understanding between the
bargaining units. The Ordinance amendment would be sent to the council for approval.
Attorney Lane opined that the Board should delay its vote until the Ordinance was
amendment.
The Employees Retirement System Board agreed to have a special meeting, April 11,
2019 to vote upon Mr. Hassett's request for retirement.
Employees Retirement System
Regular Meeting of March 21, 2019
Page 3
Karen Williams reported that applicant #2018 —E1108 had been evaluated by the
medical director. The medical director could not make a final determination because
the applicant had a recent procedure that could affect the disability. The medical
director would like to see the applicant again to determine if the procedure had been
successful.
There were no requests for non -duty disability.
There were no requests for refund of accumulated contribution.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to excuse
Trustee Dedic from the March Employees' Retirement System Board.
Adopted by the following vote: 7 — 0.
Karen Williams reported that MAPERS Spring Conference was scheduled for May 18-
21, 2019. She requested that members who were interested in attending the
conference contract the Retirement Office.
There were no public comments for items not on the Agenda.
Attorney Lane distributed the updated 2019 Employees' Retirement System Budget that
was approved at the last meeting.
Karen Williams reported that the Duty Disability Income Verification form requires an
update due to the changes in the Federal 1040 form. The current Income Verification
Form line numbers do not match the updated Federal 1040.
Attorney Ken Lane reported that he reviewed the form and provided line changes for the
income Verification form.
The Employees Retirement System Board requested that the Retirement Office correct
the form and re -send to disability retirees with a letter of explanation.
Karen Williams reported that an election would be needed for the vacated trustee
position. She distributed a posting with proposed election nomination guidelines and
dates for the election.
Trustee Carol Munroe announced that she is leaving the City of Lansing for another
position. Trustee Monroe expressed her gratitude to the trustees and the City of Lansing
for her tenure.
Employees Retirement System
Regular Meeting of March 21, 2019
Page 4
The Employees Retirement System Board expressed appreciation for Trustee Munroe's
years of service.
Attorney Ken Lane distributed a resolution regarding Trustee Munroe's vacated position.
He opined that the Retirement Ordinance specifies when an elected member leaves the
City, the office of trustee is declared vacate to start the election process.
BOARD OF TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Trustee Mark Parker supported by Trustee Kraus moved the adoption of the following
Resolution:
RESOLUTION NO. 2019-1
AN RESOLUTION TO DECLARE THE OFFICE OF TRUSTEE
VACATED
WHEREAS, Trustee Carol Munroe has diligently served on the Board of Trustees of the
Lansing Employees' Retirement System for several years; and
WHEREAS, Trustee Munroe has notified the Board of Trustees that she is leaving her
position with the City of Lansing effective March 29, 2019; and
WHEREAS, Section 292.05 of the Lansing Codified Ordinances provides that once a
Trustee leaves the employ of the City, such Trustee is considered to have resigned from
the Board and the Board must declare by resolution that the office is vacated.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. The Board of Trustees of the Lansing Employees' Retirement System declares the
office of trustee held by Carol Munroe vacated as of the date of this Resolution.
2. The Board of Trustees directs the Retirement Analyst to begin the process to fill the
vacated trustee office within 60 days in accordance with Section 292.05 of the Lansing
Codified Ordinances.
3. The Board of Trustees extends its sincerest thank you to Carol Munroe for her years of
service and wishes her well in her future endeavors.
4. All resolutions and parts of resolutions insofar as they conflict with the provisions of
this Resolution are rescinded.
Yeas: Trustees: Bennett Kraus, Munroe D Parker, M. Parker, Sanchez-Gazella, Schor,
Washington
Nays: Trustees:
Abstain: Trustees:
Absent: Trustees:
Karen E. Williams distributed the Legal Advisor Request for Information (RFI). Ms.
Williams reported that the Joint Retirement Board requested that the City Attorney draft
a RFI for Board review.
Trustee Washington inquired why the legal advisor RFI was needed.
Trustee Dennis R. Parker explained that the request was made to the City Attorney as a
part of due diligence.
Trustee Schor expressed that he did not see a reason to spend funds on outside
counsel at this time, but he does support the transparency and due diligence of the
search.
Trustee Kraus expressed concern regarding the intent of the document and to whom
the legal advisor RFI would be distributed.
The Employees Retirement requested the Legal Advisor Request for Information (RFI)
remain on pending until the May Joint Retirement Board meeting so that he could
discussed with the City Attorney's Office.
Karen Williams reviewed the Monthly investment Report and the Securities Lending
report for the period ending February 28, 2019.
It was moved by Trustee Munroe and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 9 — 0.
The meeting adjourned at 9:35 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Angela Bennett, Secretary
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Special Meeting
Council Conference Room
a.m.
10th Floor, City Hall
Lansing, MI
April 11, 2019
Thursday, 8:15
The Board met in regular session and was called to order at 8:21 a.m.
Present: Dedic, D. Parker, M. Parker, Sanchez-Gazella, Washington - 5
Absent: Bennett, Kraus, Schor
Others: Karen E. Williams, Finance Department; Attorney Ken Lane (representing the
Law Department).
There were no public comments for items on the agenda.
It was moved by Trustee Dedic and supported by Trustee Mark Parker to excuse
Trustee Kraus from the April Special Meeting of the Employees' Retirement System
Board.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
request for regular age and service retirement:
Eric Hassett (Public Service — T243 Supervisory), 23 years, 11 months of service
credits, age 53, effective 4/13/2019
Adopted by the following vote: 5 -0.
Trustee Washington requested that she be excused from the April Regular meeting of
the Employees' Retirement System Board.
Trustee Dennis Parker explained the ABS Emerging Markets conference and requested
permission to attend.
It was moved by Trustee Dedic and supported by Trustee Mark Parker to allow the
chairperson and any member who wished to attend the ABS Conference.
Adopted by the following vote: 5 - 0
It was moved by Trustee Dedic and supported by Trustee Mark Parker to adjourn the
Employees Retirement System Board special meeting.
Adopted by the following vote: 5 — 0.
The meeting adjourned at 8:24 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 18, 2019
Thursday, 8:30
The Board met in regular session and was called to order at 8:35 a.m.
Present: Dedic, Kraus, D. Parker, M. Parker, Sanchez-Gazella, Washington (8:55am) -
6
Absent: Bennett, Schor
Others: Karen E. Williams, Finance Department; Attorney Ken Lane (representing the
Law Department).
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of March 21,
2019.
Adopted by the following vote: 5 - 0
There were no public comments for items on the agenda.
3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total
active membership: 440. Total deferred: 75. 1 death(s) James S. Oakley (retired
6/14/2003 — UAW), died 3/21/2019, no surviving beneficiary. Refunds made
since the last regular meeting mounted to $0.00. Retirement allowances paid for
the month of March 2019, amounted to $1,968,696.10. Total retirement checks
printed for the ERS System: 930. Total Retirement checks printed for both
systems: 1675. Eligible domestic relations orders received: 0. Domestic
relations orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to
approve the request for regular age and service retirement:
Roger Smith (Finance — T243 CTP), 3 years, 1 month of service credits, age 58,
effective 4/1/2019 (Eligible to retirement with 19.6 years of reciprocal retirement
service used for vesting and eligibility)
Linda Shoemaker (District Court — NonBargaining), 8 years, 6 months of service
credits, age 60, effective 4/13/2019.
Adopted by the following vote: 5 -0.
Employees Retirement System
Regular Meeting of April 18, 2019
Page 2
Karen Williams reported that applicant #2018 —E1108 had provided updated medical
reports to be evaluated by the medical director. The Human Resources Department
provided additional medical reports to be evaluated by the medical director. The
Retirement Office forwarded the additional material to Dr. Roth to make a final
determination.
There were no requests for non duty disability.
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the
following request for refund of accumulated contribution:
Robert Burke, City Attorney'sOffice, not vested, $434.72
Adopted by the following vote: 5 -0
It was moved by Trustee Mark Parker and supported by Trustee Dedic to excuse
Trustee Washington to the April Employees' Retirement System Board.
Adopted by the following vote: 5 — 0.
Karen Williams reported that MAPERS Spring Conference was scheduled for May 18-
21, 2019. She requested that members who were interested in attending the
conference contract the Retirement Office.
There were no public comments for items not on the Agenda.
Attorney Lane reported that he is updating the Employees Retirement System
Ordinance. Attorney Lane also recommended updating the Frequently Asked Question
document. He will distribute the document prior to the meeting for Board review.
Karen Williams reviewed the Duty Disability Income Verification process. Retirees are
required to submit an income verification form by April 30. Members who do not submit
the form may have the pension suspended until compliance. Karen Williams also
reviewed the medical re-examination process. Disability retirees are subject to be re-
examined under the Employees Retirement System Ordinance and Policy.
Karen Williams reported that an election would be needed for the trustee position
vacated by Carol Munroe. She reviewed the election process, guideless and dates for
the election. Ms. Williams also described the electronic voting process. She informed
the Board that there are two candidates who picked up nomination petitions.
Trustee Kraus inquired who were the two candidates and their department.
Employees Retirement System
Regular Meeting of April 18, 2019
Page 3
Ms. Williams indicated that Irene Cahill and Matthew Bahr were the candidates and both
were from Public Service.
Trustee Kraus expressed concern that all the elected trustees would be from the Public
Service Department. Trustee Kraus indicated that the discussion regarding having all
trustees elected at -large should be re -visited. She expressed concern that the other
departments would not have a voice with all the trustees elected from one department.
Trustee Kraus indicated that she opposed the rule change at the time. She
recommended having one dedicated trustee seat.
Trustee Mark Parker indicated that each member worked in different areas with different
groups of employees.
Trustee Kraus indicated that the potential is there for.all three elected trustees from the
same work group with at- large positions. Trustee Kraus wanted her concern brought
up for the new members of the trustee board since the rule change. Trustee Kraus
suggested that one trustee could be elected from public service, one trustee from other
departments, and one at -large.
Trustee Washington indicated that she believed that all employees should have a voice.
Trustee Washington agreed that the rule should be re -visited and discussed.
Attorney Lane reviewed the Retirement Ordinance that stated the trustee elections are
set by Board policy. Attorney Lane explained that before the rule change, there were
one elected from public service, parks and city hall. After the City reorganization,
Trustee Mark Parker was moved to the public service department from city hall. Thus,
the Board was in violation of its own bylaws.
Trustee Dedic indicated the problems arose due to the various department re-
organization. He explained that he had suggested previously that members are elected
from different bargaining units.
Attorney Lane will provide a few different configurations for the elected trustees on the
Employees Retirement System Board at the next meeting.
The Employees Retirement requested the Legal Advisor Request for Information (RFI)
remain on pending until the May Joint Retirement Board meeting so that he could
discussed with the City Attorney's Office.
Karen Williams reviewed the Monthly investment Report and the Securities Lending
report for the period ending April 30, 2019.
Employees Retirement System
Regular Meeting of April 18, 2019
Page 4
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to
adjourn the Employees Retirement System Board meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:15 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 16, 2019
Thursday, 8:30
The Board met in regular session and was called to order at 8:35 a.m.
Present: Kehler, Kraus, D. Parker, M. Parker, Sanchez-Gazella - 5
Absent: Dedic, Schor, Washington
Others: Karen E. Williams, Finance Department; Attorney Ken Lane (representing the
Law Department).
It was moved by Trustee Mark Parker and supported by Trustee Kehler to approve the
Official Minutes of the Employees' Retirement System Special Meeting of April 11,
2019.
Adopted by the following vote: 6 — 0
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of April 18,
2019.
Adopted by the following vote: 6 — 0.
There were no public comments for items on the agenda.
9 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active
membership: 447. Total deferred: 76. 5 death(s) Martha Crossett, died 4/2/2019, age
86, spouse of nonbargaining retiree; Luisa E. Diaz (retired 12/3/2002 — District Court
T243), died 4/4/2019, age 81, no beneficiary; Charles L. Gibbs (retired 3/1/1988 —
T243CTP), died 3/24/2019, age 90, no surviving beneficiary; Charles H. Smiley (retired
5/3/1993 — FOP 911), died 3/28/2019, age 77, beneficiary to receive 50%; John Ward,
died 3/21/2019, age 88, spouse of nonbargaining retiree, . Refunds made since the last
regular meeting mounted to $0.00. Retirement allowances paid for the month of March
2019, amounted to $1,968,696.10. Total retirement checks printed for the ERS System:
930. Total Retirement checks printed for both systems: 1675. Eligible domestic relations
orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations
orders certified: 0.
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to
approve the request for regular age and service retirement:
Cynthia Brzana (District Court — NonBargaining), 13 years, 3 months of service
credits, age 62, effective 6/15/2019
Adopted by the following vote: 5 -0.
Employees Retirement System
Regular Meeting of May 16, 2019
Page 2
Karen Williams reported that applicant #2018 —E1108 had provided updated medical
reports to be evaluated by the medical director. The Human Resources Department
provided additional medical reports to be evaluated by the medical director. The
medical director has seen the applicant and will issue an updated report.
There were no requests for non -duty disability.
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the
following request for refund of accumulated contribution:
Sherri Smith, District Court NonBargaining, not vested, $14,888.66
Adopted by the following vote: 5 -0
It was moved by Trustee Kehler and supported by Trustee Kraus to excuse Trustee
Dedic and Trustee Washington to the May Employees' Retirement System Board.
Adopted by the following vote: 5 — 0.
Trustee Dennis Parker provided an oral report for the ABS Conference. The
Conference focused on in-depth emerging markets. Trustee Parker detailed workshops
that discussed technology such as Google search engines, and artificial intelligence in
China.
Karen Williams reported that MAPERS Spring Conference was scheduled for May 18-
21, 2019. She requested that members who were interested in attending the
conference contract the Retirement Office.
There were no public comments for items not on the Agenda.
Attorney Lane reported that he is updating the Employees Retirement System
Ordinance. Attorney Lane proposed having a draft at the September meeting. Attorney
Lane received suggestions from Trustees for updating the Frequently Asked Question
document.
Attorney Lane distributed a draft to amend the Trustee Election process. The
amendment would change member representation. Elected members would come from
the various bargaining units: UAW, Teamsters, and all other employees.
Trustee Dennis Parker stated that the at -large election was the most fair for all
employees.
Employees Retirement System
Regular Meeting of May 16, 2019
Page 3
Trustee Mark Parker stated that in the past without at large election, employees at City
Hall had an advantage. Trustee Mark Parker stated that with the at large elections,
employees have the opportunity to be elected to the Board once a year, especially with
the on-line voting eligible. He felt that the at large elections were more democratic.
Trustee Kraus expressed concern about the balance of the union membership on the
Board. The Board has nine members with three UAW union representation, and with
the election, there could be four UAW union represents.
Trustee Mark Parker suggested adding elected members to the Board to allow diversity
and employee input. He suggested adding two additional elected members for a total of
five on the Employees Retirement System Board. Trustee Parker believed that the
Teamster bargaining group members are understaffed and many will not run.
Attorney Ken Lane opined that the Ordinance would need to be amended to add
additional trustees.
Trustee Kraus would be agreeable to Attorney Ken Lane's proposal with the addition of
two at -large trustee positions.
Trustee Kehler expressed concern that there was a communication issue contrasted
with changing the membership of the Board.
It was moved by Trustee Kraus and supported by Trustee Kehler to draft an Ordinance
amendment for discussion that expands the Employees Retirement System Board from
three elected employee members to five.
Adopted by the following vote: 5 — 0.
Karen Williams reviewed the Duty Disability Income Verification process. Retirees are
required to submit an income verification form by April 30. Members who do not submit
the form may have the pension suspended until compliance. Karen Williams also
reviewed the medical re-examination process. Disability retirees are subject to be re-
examined under the Employees Retirement System Ordinance and Policy. The disability
subcommittee has received a list of duty disability retirees for review.
Karen Williams reported that there were two candidates nominated for the Trustee
Election: Matthew Bahr and Irene Cahill. Ms. Williams reviewed the election process,
guideless and dates for the election. Ms. Williams also described the electronic voting
process.
Employees Retirement System
Regular Meeting of May 16, 2019
Page 4
The Employees Retirement requested the Legal Advisor Request for Information (RFI)
remain on pending until the May Joint Retirement Board meeting so that he could
discussed with the City Attorney's Office.
Karen Williams reviewed the Quarter Expenses Report and the Securities Lending
report for the period ending April 30, 2019.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to adjourn the
Employees Retirement System Board meeting.
Adopted by the following vote: 5 — 0.
The meeting adjourned at 9:24 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 20, 2019
Thursday, 8:30
The Board met in regular session and was called to order at 8:35 a.m.
Present: Kraus, D. Parker, M. Parker, Sanchez-Gazella, Schor, Washington - 6
Absent: Dedic, Kehler, Washington
Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane
(representing the Law Department), Michael Grys, employee.
Karen Williams provided the Trustee board election results for approval. Ms. Williams
explained that Matthew Bahr won the election with the majority of votes. Mr. Bahr
replaced Carol Munroe who vacated her position. Mr. Matthew would need to be sworn
in by the City Clerk prior to taking office. He should be at the next meeting.
It was moved by Trustee Mark Parker and supported by Trustee Washington to approve
the election results and certify Mr. Matthew Bahr as the winning candidate for the
expiring term of June 30, 2022.
Adopted by the following vote: 6 - 0
It was moved by Trustee Kraus and supported by Trustee Washington to approve the
Official Minutes of the Employees' Retirement System Regular Meeting of May 16,
2019.
Adopted by the following vote: 6 — 0
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
Official Minutes of the Employees' Retirement System Regular Meeting and the Police
and Fire Retirement System Joint Meeting of May 16, 2019.
Adopted by the following vote: 6 — 0.
Karen Williams explained under public comments that Mr. Michael Grys was at the
meeting to request use of the reciprocal retirement act to retire. Ms. Williams explained
that Ionia County is not a reciprocal unit and would not qualify under Michigan law.
Employees Retirement System
Regular Meeting of June 20, 2019
Page 2
Secretary's Report:
5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total
active membership: 452. Total deferred: 77. 0 death(s). Refunds made since the
last regular meeting mounted to $0.00. Retirement allowances paid for the
month of May 2019, amounted to $1,962,940.83. Total retirement checks
printed for the ERS System: 930. Total Retirement checks printed for both
systems: 1673. Eligible domestic relations orders received: 0. Domestic
relations orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
request for regular age and service retirement:
Pamela Bissell (Public Service — UAW), 15 years of service credits, age 64,
effective 6/1/2019
James Campbell (Human Resources — T243), 26 years, 7 months of service, age
54, effective 7/1/2019
Morris Garner (Public Service — UAW), 25 years, 4 months of service credits, age
57, effective 8/15/2019
Carol Hubbard (District Court — T243), 17 Years, 10 months of service credits,
age 60, effective 7/13/2019
Timothy S. Sherwood (Public Service —UAW), 20 years, 8 months of service
credits, age 61, effective 7/13/2019
Adopted by the following vote: 6 -0.
Karen Williams reported that applicant #2018 —E1108 had provided updated medical
reports to be evaluated by the medical director. The Human Resources Department
provided additional medical reports to be evaluated by the medical director. The
medical director has seen the applicant again and the medical direct has issued an
updated report.
Trustee Dennis Parker recessed the Employees' Retirement System Board to allow the
disability submit to meet to review a medical report for Applicant #2018 —E1108.
The Board recessed at 8:47 a.m.
The Board resumed at 8:49 a.m.
Employees Retirement System
Regular Meeting of June 20, 2019
Page 3
Karen Williams reported that the disability subcommittee met regarding the application
request for duty disability for Applicant #2018 —E1108. The subcommittee has a
recommendation for the board.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to accept the
medical report and approve the doctor's recommendation for a duty disability for
Applicant #2018 — E1108.
Adopted by the following vote: 6 — 0.
There were no requests for non -duty disability.
It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to approve
the following request for refund of accumulated contribution:
Chelsea Coffey, Mayoral Staff, not vested, $4,473.09
Tremachel Johnson, T243 CTP, not vested, $717.41
Adopted by the following vote: 6 -0
Ms. Williams reported that Trustee Kehler notified the retirement office that she had a
work obligation and could not be at the meeting. Trustee Dennis Parker reported that
Trustee Dedic contact him and asked to be excused from the meeting.
It was moved by Trustee Washington and supported by Trustee Mark Parker to excuse
Trustee Dedic and Trustee Washington to the June Employees' Retirement System
Board.
Adopted by the following vote: 6 — 0.
Trustee Mark Parker provided an oral report for the MAPERS Spring Conference. He
felt that it was a great conference with good speakers. Trustee Parker discussed the
U.S. Bond Market workshop. He discussed indexing versus active investments. The
indexing, generally, was found to be more productive. He discussed fixed assets, active
investment was more productive. Trustee Parker had an informal discussion regarding
Oakland County that was fined by the IRS for their program that brought back retiree
contractor. Oakland County had paid out $300,000 in fines and had to put $2 million in
a contingency fund. The county had 56 retiree contractor employees were penalized by
the IRS. Trustee Parker discussed the presentation on PA 202.
Trustee Kraus inquired if the Oakland County issue could affect the City of Lansing.
Attorney Ken Lane explained that he will review the Oakland County case, but he
believed that the retiree contractors had a bona -fide separation from the County. He will
review the City of Lansing policy and bring a report back to the Board.
Employees Retirement System
Regular Meeting of June 20, 2019
Page 4
Trustee Schor indicated that the City of Lansing does not have a formal program that
brings back retiree as contractors. Trustee Schor stated that there are very few retiree
contracts with the City at this time.
Trustee Dennis Parker attended the MAPERS Spring Conference. Trustee Dennis
Parker reported the increased importance of Defined Benefit plans and its effect on the
economy. He discussed funding vehicles for retirement health care such as the VEBA
and Health Savings Accounts.
Attorney Ken Lane reported that he is making progress on the Employees Retirement
Ordinance. Attorney Lane proposed having a draft at the September meeting. Attorney
Lane received suggestions from Trustees for updating the Frequently Asked Question
document. He asked Trustees to review the document.
Karen Williams reported the Employees Retirement System Board requested that
Attorney Lane draft an amendment to increase the elected board members from three
to five.
Attorney Lane distributed a draft to amend the Trustee Election process. He discussed
the amendment would change member representation. Elected members would come
from the various bargaining units: UAW, Teamsters, and all other employees and two at
large positions.
Trustee Kraus explained her concern that the current elected positions have only one
union affiliation from Public Service, The UAW has all the elected positions as well as
the citizen representative.
Attorney Lane provided the history of the Board policy. He discussed his amendment
that that when departments were configured, elected members were in conflict with the
policy.
The policy was amended to allow at -large elections.
Trustee Mark Parker re -stated that in the past without at large election, employees at
City Hall had an advantage. Trustee Parker discussed the early election scandal.
Trustee Parker believed that the Teamster bargaining group members are understaffed
and many will not run.
Trustee Washington expressed concern for the long-term process to have more union
representation and a broad base.
Trustee Schor expressed concern about increasing the Employees Retirement System
Board. Trustee Schor was sympathetic to trustees' concern but he felt that the Board
should take some additional time to review alternatives.
Trustee Kraus suggested that if an employee could not be found who wished to run for
an allocated position, that the Mayor could appoint a member until the next election.
Employees Retirement System
Regular Meeting of June 20, 2019
Page 5
Attorney Ken Lane explained the Reciprocal Retirement Act is a state statue. Attorney
Lane opined that only participating reciprocal units could utilize the Reciprocal
Retirement Act. Municipal units have to opt -in to the Act. Attorney Lane stated the
Employees Retirement System Board does not have the authority to accept the time
from Ionia County. Attorney Lane also noted that there was nothing in the Retirement
Ordinance to allow the Board to recognize time spent in a non -reciprocal unit.
Trustee Mark Parker inquired if Ionia County had a retirement system when Mr. Grys
was an employee.
Mr. Grys provided comments regarding his request for the reciprocal retirement time.
Mr. Grys explained that at the time he worked for Ionia County, there was no retirement
system. He believed that the Reciprocal Retirement Act allowed municipal service to be
recognized. Mr. Grys requests that the Board to acknowledge and accept his seven
years of service with Ionia County for retirement eligibility purposes. Mr. Grys stated
that there would be no cost to the City of Lansing.
Trustee Washington inquire if Ionia County is currently a reciprocal unit.
Mr. Grys stated that Ionia County is not a reciprocal unit on the State of Michigan list.
Mr. Grys indicated that he has worked for the City of Lansing for twenty-one years and
the time from Ionia County would allow him to retire.
Trustee Mark Parker recommended that Mr. Grys contact Ionia County to advocate the
county opt -in as a participating reciprocal unit.
Karen Williams also reported that Mr. Al Mooney has requested a return of his
accumulated contributions. He was advised that he could purchase service credits
under the reciprocal retirement act. Mr. Mooney worked and retired from the City of
Grand Rapids, which is not a reciprocal unit. Mr. Mooney did not purchase enough
service credits to vest in the system.
Attorney Lane opined that there is a provision in the Retirement Ordinance that if you do
not withdraw the monies within five years, the money reverts to the system. Attorney
Lane mentioned that the only time the Board made an exception was when the
employee had documentation that she could use the reciprocal retirement act.
Trustee Schor requested a list of communities that participate in the Reciprocal
Retirement Act be provided to employees within their documentation when the hire or
leave the City of Lansing.
Attorney Lane will review the documentation regarding Mr. Mooney's refund request
and report back to the Board.
Karen William distributed proposed recommendation by Asset Consulting Group for 6
million of quarterly cash flow.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approved
quarterly cash flow requests as recommended by Asset Consulting Group; $1.5 million
from Western Asset; $2.5 million from Franklin Templeton; $2 million from BlackRock
and $20,000 from Northern Trust Securities Lending for the Administrative support.
Adopted by the following vote: 5 — 0.
Karen Williams reported that the Joint Retirement Board will have a special meeting for
the Emerging market search, June 25, 2019.
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to
approve the Legal Advisor Request for Information.
Adopted by the following vote: 5 — 0.
Karen Williams reviewed the Monthly Investment Report and the Securities Lending
report for the period ending May 31, 2019.
The meeting adjourned at 9:53 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 18, 2019
Thursday, 8:30
The Board met in regular session and was called to order at 8:35 a.m.
Present: Bahr, Kraus, D. Parker, M. Parker, Schor, Washington - 6
Absent: Dedic, Kehler, Sanchez-Gazella
Others: Karen E. Williams, Finance Department; Attorney Ken Lane (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 June 20,
2019.
Adopted by the following vote: 6 — 0
It was moved by Trustee Mark Parker and supported by Trustee Washington to approve
the Official Minutes of the Employees' Retirement System Regular Meeting and the
Police and Fire Retirement System Joint Special Meeting of June 25, 2019.
Adopted by the following vote: 6 — 0.
There were no public comments.
Secretary's Report:
4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total
active membership: 457. Total deferred: 77. 3 death(s), Doris J. Dildy, died
6/11/2019, age 87, spouse of NonBargaining retiree; Reatha L. Trentham,
(retired 5/22/1981 — District Court NonBargaining), died 6/30/2019, age 100, no
beneficiary; Wanita Whitford, died 6/21/2019, age 85, spouse of NonBargaining
retiree. Refunds made since the last regular meeting mounted to $5,190.50.
Retirement allowances paid for the month of June 2019, amounted to
$1,965,838.90. Total retirement checks printed for the ERS System: 931. Total
Retirement checks printed for both systems: 1683. Eligible domestic relations
orders received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
Employees Retirement System
Regular Meeting of July 18, 2019
Page 2
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
request for regular age and service retirement:
Billie O'Berry (Law — T214), 30 years, 5 months of service credits, age 64,
effective 8/1/2019 (From Deferred)
Sandra Terranova (District Court Teamster), 18 years, 1 month of service credits,
age 59, effective 8/15/2019
Adopted by the following vote: 6 -0.
There were no requests for duty disability.
There were no request for non duty disability.
It was moved by Trustee Mark Parker and supported by Trustee Washington to approve
the following request for refund of accumulated contribution:
Jessica Roeglin, District Court, not vested, $3,020.77
Adopted by the following vote: 6 -0
Ms. Williams reported that Trustee Kehler and Trustee Sanchez-Gazella notified the
retirement office that they could not be at the meeting. Trustee Dennis Parker reported
that Trustee Dedic contact him and asked to be excused from the meeting.
It was moved by Trustee Washington and supported by Trustee Mark Parker to excuse
Trustee Dedic from the July Employees' Retirement System Board.
Adopted by the following vote: 6 — 0.
Karen Williams reported that the MAPERS Fall Conference will be held September 21
—September 24, 2019 in Kalamazoo, Michigan.
Attorney Ken Lane reported that he continues to work on the Employees Retirement
System Board Ordinance and should have it available to review at a later meeting this
year.
Attorney Lane reported that he distributed the Frequently Asked Questions document
and requested that trustees review the document for updates and changes.
Attorney Lane updated the Employees' Retirement System Board regarding the
Oakland County contract employee issue with the Internal Revenue Service. Attorney
Lane reviewed the City of Lansing Retirement Board policy regarding contract
employees and did not recommend any changes.
Employees Retirement System
Regular Meeting of July 18, 2019
Page 3
Under the Retirement Boards' Policy, the City Attorney reviews contract employees
annually. If there are any issues, the City Attorney notifies the department so that the
issue can be corrected.
Karen Williams updated the Board that Mr. Al Mooney has requested a return of his
accumulated contributions. He was advised that he could purchase service credits
under the reciprocal retirement act. Mr. Mooney worked and retired from the City of
Grand Rapids, which is not a reciprocal unit. Mr. Mooney did not purchase enough
service credits to vest in the system.
The Retirement Office provided correspondence and documents to Attorney Lane for
review of the request. Attorney Lane opined that there is a provision in the Retirement
Ordinance that if you do not withdraw the monies within five years, the money reverts to
the system. Attorney Lane mentioned that the only time the Board made an exception
was when the employee had documentation that she could use the reciprocal retirement
act.
Trustee Kraus stated that it was not clear why Mr. Mooney had waited this long to
request his contributions.
The ERS Board discussed the request for the return of Mr. Mooney's accumulated
contributions and agreed that the Retirement Ordinance does not allow the monies to
be refunded after the five -year period. The Board requested that Attorney Lane notify
Mr. Mooney of the Board's decision.
Karen Williams reported that the TRowe Price has forwarded a fee reduction
amendment for the Board approval. The amendment was reviewed by legal counsel.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
TRowe Price Fee Reduction Amendment.
Adopted by the following vote: 6 — 0.
Karen Williams reported that the Joint Retirement Boards met June 25, 2019 to
interview Emerging Markets managers. The retirement boards selected ABS as its new
investment manager. ABS will replace Wells Capital investment and Wasatch. Asset
Consulting Group has contacted Wells Capital and Wasatch regarding termination. The
contracts have been reviewed by legal counsel and can be signed.
The Employees Retirement System Board Legal Advisor Request for Information was
approved at the last meeting with a response date of August 1, 2019.
The Employees Retirement System Board discussed amending the Trustee Board
composition and requested that the item remain on pending for further review.
Karen Williams reviewed the Monthly Investment Report and the Securities Lending
report for the period ending June 30, 2019.
It was moved by Trustee Mark Parker and supported by Trustee Bahr to adjourn the
Employees Retirement System Board June meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:07 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 August 22, 2019
City Council Conference Room Thursday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in regular session and was called to order at 8:39 a.m.
Present: Bahr (8:54), Kraus, D Parker, M. Parker, Sanchez-Gazella, Washington — 6
Absent: Trustee Dedic, Kehler, Schor
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to approve
the Official Minutes of the Employees' Retirement System Board Regular Meeting of
July 18, 2019.
Adopted by the following vote: 5 - 0
There were no public comments.
Secretary's Report. 7 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 2
retired. Total active membership: 461. Total deferred: 76. 1 death(s), Steven Hoard
(retired 6/16/2012 — UAW), died 7/21/2019, age 63, no beneficiary. Refunds made since
the last regular meeting amounted to $0.00. Retirement allowances paid for the month of
July 2019, amounted to $1,907,657.89. Total retirement checks printed for the ERS
System: 931. Total Retirement checks printed for both systems: 1687. Eligible domestic
relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to approve
the following requests for regular age & service retirements:
Michelle Cannon (District Court — Teamster 243), 31 years, 10 months of service credits,
age 60, effective 9/9/2019.
Donald D. Johnson (Public Service — NonBargaining Supervisory), 25 years, 2 months of
service credits, age 60, effective 8/17/2019.
Ronald Pierle (Finance — T243), 16 years, 1 month of service credits, age 58, effective
10/1/2019 (From Deferred)
Employees Retirement System
Regular Meeting of August 22, 2019
Page 2
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to approve
the following requests for regular age & service retirements:
Janice Wildermuth (Public Service — UAW), 25 years of service credits, age 57, effective
9/15/2019 with the purchase of 4 months of universal service credits.
Adopted by the following vote: 5 - 0
There were no requests for duty disability retirements.
There were request for non -duty disability retirements.
Karen Williams reported that Mr. Richard Wernecke, Police (Detention), not vested, had
requested his accumulated contributions of $7,140.37.
It was moved Trustee Mark Parker and supported by Trustee Kraus to approve the following
Request for Refund of Accumulated Contribution:
Richard C. Wernecke, Police (Detenion), not vested, $7,140,37
Adopted by the following vote: 5 -0.
Karen Williams explained the Trustee Kehler and Trustee Schor were ex -officio and did
not need to be excused from the meeting. Trustee Dennis Parker stated that he was
contacted by Trustee Dedic requested to be excused from the August meeting. Trustee
Dennis Parker noted that Trustee Bahr was on his way to the meeting.
It was moved by Trustee Washington and supported by Trustee Mark Parker to excuse
Trustee Dedic and Trustee Bahr from the August meeting.
Adopted by the following vote: 5 — 0.
Karen Williams reminded members of the upcoming MAPERS Fall Conference, the
International Federation of Education, Benefit Plans (I.F.E.B.P.) Annual Conference.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to allow any
member who wished to attend the IFEBP Annual Conference.
Adopted by the following vote: 5-0
There were no public comments for items not on the agenda..
Attorney Ken Lane provided an update of the Employees Retirement System
Ordinance. He stated that he would have a draft of the Ordinance next month for
review.
Employees Retirement System
Regular Meeting of August 22, 2019
Page 3
Attorney Lane distributed copies of the updated Frequent Asked Question Document.
Attorney Lane distributed an opinion regarding the ability for Michael Grys to use the
Reciprocal Retirement Act. Attorney Lane discussed that Mr. Grys had worked for the
City for over 20 years and was age 52. Attorney Lane verified with Ionia County that he
was in the county's pension system when he worked there for seven years. Attorney
Lane discussed Section 5 of the Reciprocal Retirement Act that would allow Mr. Gry to
use the seven years accrued at Ionia County to retire from the City of Lansing.
The Employees Retirement System Board requested that Mr. Grys be provided a copy
of the legal opinion.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to approve the
Legal Counsel opinion regarding the Reciprocal Retirement Act.
Adopted by the following vote: 6 - 0
Attorney Lane stated that the legal opinion regarding the reciprocal retirement act did
not change anything for Mr. Mooney. Attorney Lane opined that Mr. Mooney cannot use
Grand Rapids time to get a pension from the City of Lansing. Attorney Lane explained
that Mr. Mooney was told by the City that if he ever wanted to use the Reciprocal
Retirement Act, he was required to repay his contributions. Attorney Lane stated that
information was not accurate.
Trustee Mark Parker recommended the Employees Retirement System return Mr.
Mooney's accumulated contributions because he was given bad advice by the City.
Trustee Kraus expressed concern regarding the length of time before Mr. Mooney made
his request for a return of contributions from the City of Lansing.
Trustee Washington inquired if there were documents that the City told Mr. Mooney that
he needed to repay contributions to the City.
Attorney Lane verified that there was a letter provided to Mr. Mooney that told him to
repay his contributions if he wished to use the Reciprocal Retirement Act.
It was moved by Trustee Mark Parker and supported by Trustee Bahr Attorney Lane
stated the opinion has to approve the return of Mr. Mooney's accumulated contributions,
upon receipt of his requests on the appropriate Board form.
Adopted by the following vote: 6 - 0
Ms. Williams presented Quarterly Cash Flow Report and the Securities Lending Report
for the month of July 2019.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to adjourn the
Employees Retirement System Board August meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:12 a.m.
Minutes approved on
Angela Bennett, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES RETIREMENT SYSTEM
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
September 19, 2019
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:34 a.m.
Present: Bahr, Dedic, Kehler, Kraus, D Parker, M. Parker, Schor, Washington — 8
Absent: Trustee Sanchez-Gazella (excused)
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
(representing the City Attorney's Office).
It was moved by Trustee Kraus and supported by Trustee Kehler to approve the Official
Minutes of the Employees' Retirement System Board Regular Meeting of August 20,
2019.
Adopted by the following vote: 8 — 0.
It was moved by Trustee Kraus and supported by Trustee Mark Parker to approve the
Official Minutes of the Employees' Retirement System Board and the Police and Fire
Retirement System Board Regular Joint Meeting of August 22, 2019.
Adopted by the following vote; 8 — 0
There were no public comments.
6 new member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 3 retired. Total active
membership: 462. Total deferred: 75. 1 death(s), Patrick Wolf (retired 1/21/1998 —
Teamster 243), died 8/7/2019, age 68, spouse to receive 100%; Refunds made since
the last regular meeting mounted to $7,140.37. Retirement allowances paid for the
month of August 2019, amounted to $1,984,383.73. Total retirement checks printed for
the ERS System: 935. Total Retirement checks printed for both systems: 1692. Eligible
domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
Employees Retirement System
Regular Meeting of September 19, 2019
Page 2
It was moved by Trustee Mark Parker and supported by Trustee Sanchez-Gazella to approve
the following requests for regular age & service retirements:
Eric Cushman (Public Service —Teamster 243), 6 years, 4 months of service
credits, age 57, effective 9/21/2019. (Eligible to retire with additional 27 years, 11
months of Reciprocal Retirement time earned with the City of Kalamazoo)
Michael A. Grys (District Court — Teamster 243), 21 years, 4 months of service,
age 51, effective 9/20/2019. (Eligible to retire with additional 7 years of service
earned with Ionia County)
Michael N. Hedrick (Finance — Teamster 243), 18 years, 8 months of service
credits, age 63, effective 10/19/2019
Eddie Hunter (Planning and Neighborhood Development — UAW), 15 years of
service credits, age 65, effective 9/20/2019
Lorrie Ridenour (Police/Civilian — Teamster 243), 26 years, 6 months of service,
age 51, effective 9/14/2019.
Rick Wynn ( Public Service — Teamster 243) 25 years, 1 month of service, age
55, effective 9/21/2019.
Adopted by the following vote: 8 - 0
There were no requests for duty disability retirements.
There were no request for non -duty disability retirements.
There were no requests for refunds of accumulated contributions.
Karen Williams explained the Trustee Sanchez-Gazella was ex -officio and did not need
to be excused from the meeting.
Trustee Dedic provided his oral report of the ABS Conference. The conference
included a roundtable of international investment companies that discussed global
issues. The conference also included a workshop that discussed gene therapy, using
cloned genes to fight disease.
Employees Retirement System
Regular Meeting of September 19, 2019
Page 3
Trustee Dedic provided his oral report of the NCPERS Conference. The conference
included workshop that discussed artificial intelligence, facial recognition and G5
technology. The conference had workshops that discussed China's growth, tariffs and
the Janus decision by the Supreme Court. The conference discussed investment and
politics.
Karen Williams reminded members of the upcoming MAPERS Fall Conference, the
International Federation of Education, Benefit Plans (I.F.E.B.P.) Annual Conference.
Karen Williams reported that the Michigan Institutional Forum presented by the Markets
Group that would be held October 10, 2019 in East Lansing.
There were no public comments for items not on the agenda.
Attorney Ken Lane provided sections of the Employees Retirement System Ordinance
that had been updated by the various collective bargaining changes. Attorney Lane
recommended reviewing 292.21 (multipliers) and 292.25 (contribution rates) first before
moving to definition sections and then the other general sections.
Attorney Lane will amend the updated Frequent Asked Question Document.
Karen Williams indicated that the Retirement Board received questions regarding the
Request for proposal (RFPQ) that was issued.
The Employees Retirement System Board recommended that the Retirement Board
chairpersons work with the retirement office to respond to the questions.
Trustee Kraus volunteered her services to the Board to assist with the Request for
proposal (RFPQ) process. Trustee Kraus was the purchasing director for the City and
had experience crafting responses for the RFPQs.
Trustee Dennis Parker appointed Trustee Kraus as a committee member to review the
RFPQs and assist with the process.
Ms. Williams presented Monthly Investment and the Securities Lending Report for the
month of August 2019.
It was moved by Trustee Mark Parker and supported by Trustee Kraus to adjourn the
Employees Retirement System Board September meeting.
Adopted by the following vote: 8 — 0.
The meeting adjourned at 9:01 a.m.
Minutes approved on
Shelbi Frayer, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
October 17, 2019
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:31 a.m.
Present: Bahr, Dedic, Kehler, Kraus, M. Parker, Sanchez-Gazella, Schor, Washington —
8
Absent: Trustee Dennis Parker (excused)
Others: Karen E. Williams, Human Resources Department; Shelbi Frayer, Finance
Department: Attorney Ken Lane, Clark Hill (representing the City Attorney's Office).
Trustee Mark Parker presided.
Trustee Linda Sanchez-Gazella requested to be listed as excused in the September
meeting.
It was moved by Trustee Dedic and supported by Trustee Kraus to excuse Trustee
Linda Sanchez-Gazella from the September Employees Retirement System meeting.
Adopted by the following vote: 8 — 0.
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the Official
amended Minutes of the Employees' Retirement System Board Regular Meeting of
September 19, 2019.
Adopted by the following vote: 8 — 0.
There were no public comments.
8 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 7 retired. Total active
membership: 460. Total deferred: 78. 2 death(s), William D. Jacobs (retired 8/17/1991
— Teamsters 243), died 8/26/2019, age 79, beneficiary to receive 100%; Victor Lootens
(retired 4/21/2007 — UAW), died 9/24/2019, age 75, no surviving beneficiary. Refunds
made since the last regular meeting mounted to $0.00. Retirement allowances paid for
the month of September 2019, amounted to $1,990,454.32. Total retirement checks
printed for the ERS System: 937. Total Retirement checks printed for both systems:
1693. Eligible domestic relations orders received: 0. Domestic relations orders pending:
0. Eligible domestic relations orders certified: 0.
Employees Retirement System
Regular Meeting of October 17, 2019
Page 2
It was moved by Trustee Dedic and supported by Trustee Bahr to approve the following
requests for regular age & service retirements:
Mark Parker (Public Service —UAW), 25 years of service credits, age 53, effective
11/22/2019 (with the purchase of 2 months of universal service credits)
Robin Wright (Finance — Teamsters 243), 19 years, 6 months of service credits,
age 62, effective 11/1/2019
Adopted by the following vote: 8 - 0
Karen Williams reported that the Retirement Office received a request for duty disability from
Applicant #2019-E0919.
The request for duty disability was referred to the disability subcommittee.
It was moved by Trustee Kehler and supported by Trustee Dedic to allow the disability
subcommittee to meet to consider the request from Applicant #2019-E0919.
Adopted by the following vote: 8 - 0
The meeting recessed at 8:37 a.m.
The meeting resumed at 8:44 a.m.
It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to send Applicant
#2019-E0919 to the medical director for duty disability evaluation.
Adopted by the following vote: 8 - 0
There were request for non -duty disability retirements.
Karen Williams reported that the Retirement Office received a request for the refund of
accumulated contributions for Laura Dixon, Police (Civilian), not vested, $7337.18.
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the
following request for refund of accumulated contributions:
Laura Dixon, Police (Civilian), not vested, $7,337.18
Adopted by the following vote: 8 - 0
Karen Williams reported that Trustee Dennis Parker contacted the Retirement Office
and requested to be excused due to a family emergency.
Employees Retirement System
Regular Meeting of October 17, 2019
Page 3
It was moved by Trustee Washington and supported by Trustee Schor to excused
Trustee Dennis Parker from the October Employees' Retirement System Board
meeting.
Adopted by the following vote: 8 - 0
Trustee Kraus provided an oral report for her attendance at the MAPERS Fall
Conference. Trustee Kraus stated that the theme of the conference was "Late Cycle."
This term was used to describe what was happening in the economy. The keynote
speaker discussed Gross Domestic Product (GDP) and indicators that caused previous
recessions. Trustee Kraus also attended workshops regarding unfunded liability. She
remarked that the Lansing retirement boards with the advice of its actuary Boomershine
had already adopted some of the suggestions that were discussed in the workshop,
such as capping the amortization. Trustee Kraus also discussed PA202 and the
mandate for an actuarial audit, and other topics such as a variable benefit defined
benefit plan. Trustee Kraus discussed the Defined Benefit/Defined Contribution plan
and how these hybrids may not be the best option for employees who are not
investment savvy.
Trustee Bahr provided his oral report of the MAPERS Fall Conference. Trustee Bahr
focused on trustee development, learning the differences of a qualified plan, defined
contributions and defied benefit plans. He also discussed the importance of actuarial
valuations.
Trustee Kraus discussed the Michigan Institutional Forum. Trustee Kraus discussed the
importance of having a long-term investment plan. She reviewing the growth of
machine and data investing. Many of the analysts of math, physics, and scientist that
take a high-level analysis of the data. Trustee Kraus indicated that there are eight
terabytes of data collected daily. Trustee Kraus indicated that there was a workshop on
investment in Gold. Trustee Kraus discussed mitigating portfolio risk and to use caution
when determining the source for making capital calls. Trustee Kraus reviewed the State
of Kentucky pension system that was 13% funded. Kentucky is experiencing zero
percent interest rates, and its pension system has a negative cash flow.
Karen Williams reminded members of the upcoming International Federation of
Education, Benefit Plans (I.F.E.B.P.) Annual Conference.
There were no public comments for items not on the agenda.
Attorney Ken Lane provided sections of the Employees Retirement System Ordinance
that had been updated by the various collective bargaining changes. Attorney Lane
recommended reviewing 292.01 (establishment of the plan) and 292.02 (definition
section) and 292.14 (membership). He also discussed the 2019 recodification of the
plan and deleting obsolete information.
Employees Retirement System
Regular Meeting of October 17, 2019
Page 4
Attorney Lane will amend the updated Frequently Asked Question Document.
Karen Williams reported the Retirement Office received a request that an employee who
was ready to retire wished to nominate a fiancee as beneficiary. Ms. Williams contacted
legal counsel for a definition of who could be nominated as a pension beneficiary.
Trustee Mark Park disclosed that he was the employee who made the request to the
retirement office.
Attorney Ken Lane provided a legal opinion of the definition of "insurable interest" as
used in the General Employees' Retirement System Ordinance, specifically under
option A and B. Attorney Lane reviewed the City Attorney's opinion from 1993. The
definition is from insurance law and case law does allow a fiancee as a beneficiary.
Attorney Lane indicated the difference between the insurance and the pension is that
the pension beneficiary is irrevocable.
Trustee Schor expressed concern with designating a fiancee as a beneficiary.
Trustee Kraus explained for employees who choose a straight life, the accumulated
contributions can go to an heir not the pension benefit. Trustee Kraus explained the
pension benefit options are determined by actuary mortality tables.
Attorney Lane opined that he agreed with the City Attorney's opinion that a member of
the ERS can choose a fiancee as a beneficiary and does meet the definition of
insurable interest. The ERS Ordinance broadly defines a beneficiary.
Trustee Dedic inquired if the ERS Ordinance definition of beneficiary also covers
domestic partners.
Attorney Lane stated that an employee could legally marry his or her partner.
Trustee Washington expressed concern that there is a difference between fiancee and
spouse. Trustee Washington feel that it is a slippery slope.
Attorney Lane opined that the ERS Board does not have legal authority to deny a
fiancee as a beneficiary or amend the Retirement Ordinance.
Trustee Schor agreed that until there is an Ordinance change, employees could choose
this option.
It was moved by Trustee Schor and supported by Trustee Kehler to order attorney to
draft language that would only allow spouse, blood relative, or match what Police and
Fire Ordinance.
Adopted by the following vote: 8 - 0
Attorney Ken Lane will research to determine if the change can be done by policy or if
the change would need an Ordinance amendment. He will bring sample language to
the next meeting.
Karen Williams reported that the Retirement Office had received seven proposals for
the Legal Services Request for proposal (RFPQ) process.
Trustee Mark Parker referred the RFPQs to the Special Projects subcommittee:
Trustee Kraus, Trustee Washington and Trustee Dennis Parker or his designee.
Ms. Williams presented Monthly Investment and the Securities Lending Report for the
month of October 2019.
Trustee Mark Parker reviewed the monthly investment report and discussed how the
portfolio is structure to participate in the up market but provide downside protection.
It was moved by Trustee Dedic and supported by Trustee Kraus to adjourn the
Employees Retirement System Board September meeting.
Adopted by the following vote: 6 — 0.
The meeting adjourned at 9:43 a.m.
Minutes approved on
Shelbi Frayer, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
November 21, 2019
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:31 a.m.
Present: Bahr, Dedic, Kehler, Kraus (8:55), D. Parker, M. Parker, Sanchez-Gazella
Schor (8:37) — 8
Absent: Trustee Washington (excused)
Others: Karen E. Williams, Human Resources Department; Shelbi Frayer, Finance
Department: Attorney Ken Lane, Clark Hill (representing the City Attorney's Office).
It was moved by Trustee Dedic and supported by Trustee Kraus to approve the Official
amended Minutes of the Employees' Retirement System Board Regular Meeting of
October 17, 2019.
Adopted by the following vote: 6 — 0.
There were no public comments.
9 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active
membership: 462. Total deferred: 78. 2 death(s), Bennie Perdue, died 10/29/19, age
73, beneficiary to receive 100%; Ruth Trowbridge, died 11/2/2019, age 87, beneficiary
of non bargaining retiree. Refunds made since the last regular meeting mounted to
$7,337.18. Retirement allowances paid for the month of October 2019, amounted to
$2,004,186.53. Total retirement checks printed for the ERS System: 940. Total
Retirement checks printed for both systems: 1698. Eligible domestic relations orders
received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders
certified: 1.
Employees Retirement System
Regular Meeting of November 21, 2019
Page 2
It was moved by Trustee Mark Parker and supported by Trustee Kehler to approve the following
requests for regular age & service retirements:
Mark Mayhoe (Public Service — Teamsters), 15 years of service credits, age 58,
effective 11/23/2019
Andy Watson (Public Service — UAW), 25 years of service credits, age 52,
effective 12/14/2019 (with the purchase of 8 months of universal service credits)
Adopted by the following vote: 6 -0
Karen Williams reported that the Retirement Office sent a letter to Applicant #2019-E0919
requesting a medical release and information.
There were request for non -duty disability retirements.
Karen Williams reported that the Retirement Office received a request for the refund of
accumulated contributions for Albert Mooney, NonBargaining, not vested, $5,788.46;
Gregory Scott, UAW, not vested, $5,954.71; Cluster Smith, Jr., UAW, not vested,
$4,147.57.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to approve the
following request for refund of accumulated contributions:
Albert Mooney, NonBargaining, not vested, $5,788.46
Gregory Scott, UAW, not vested, $5,954.71
Cluster Smith, Jr., UAW, not vested, $4,147.57
Adopted by the following vote: 6 - 0
Karen Williams reported that Trustee Washington contacted the Retirement Office and
requested to be excused.
It was moved by Trustee Mark Parker and supported by Trustee Dedic to excuse
Trustee Washington from the November Employees' Retirement System Board meeting.
Adopted by the following vote: 6 - 0
Trustee Dennis Parker provided an oral report for her attendance at the MAPERS Fall
Conference. Trustee Parker reviewed topics that included Emerging Markets session
that discussed benchmarks, fees and health care.
Employees Retirement System
Regular Meeting of November 21, 2019
Page 3
Trustee Dedic provided an oral report regarding his attendance at the IFEBP
Conference. Trustee Dedic reviewed the health care workshops that had topics that
included overcoming stigma of mental health, future health care technology. Trustee
Dedic discussed workshops regarding workforce challenges, systems moving to cash
balances retirement. He discussed trustee expenses and the importance of trustee
education for mature plans like the City of Lansing.
Karen Williams reported that the annual memberships for the IFEBP of $532.50, MAPERS of
$200.00 and NCPERS of $260.00 were due.
It was moved by Trustee Mark Parker and supported by Trustee Kehler to approve the
payment of annual membership for IFEBP, MAPERS and NCPERS from its
administrative fund.
Adopted by the following vote: 7 — 0
There were no public comments for items not on the agenda.
Attorney Ken Lane provided the remainder of the Employees Retirement System
Ordinance that had been updated by the various collective bargaining changes.
Attorney Lane recommended reviewing 292.01 (establishment of the plan) and 292.02
(definition section) and 292.14 (membership). He also discussed the 2019
recodification of the plan and deleting obsolete information.
Attorney Ken Lane provided a legal opinion of the definition of "insurable interest" as
used in the General Employees' Retirement System Ordinance, specifically under
option A and B. Attorney Lane indicated the difference between the insurance and the
pension is that the pension beneficiary is irrevocable. Attorney Lane draft an
amendment to the Ordinance defining who could be nominated as a pension
beneficiary, similar to what is done in the Police and Fire Retirement System.
Karen Williams reported that each year, the Employees' Retirement Board reviewed the
Northern Trust Security Documents. Ms. Williams has forwarded the document to
Attorney Ken Lane.
Attorney Lane indicated that he would review the document and forward it to the
Information Technology division for review.
Karen Williams reported the request to update the Minute Master by Gabriel, Roeder,
and Smith.
The Board moved the request to pending until trustees could review the cost from the
previous update.
Employees Retirement System
Regular Meeting of November 21, 2019
Page 4
It was moved by Trustee Kraus and supported by Trustee Dedic moved the adoption of
the following resolution:
RESOLUTION NO. 1121 - 2019
AN RESOLUTION TO DECLARE THE OFFICE OF TRUSTEE VACATED
WHEREAS, Trustee Mark Parker has diligently served on the Board of Trustees of the
Lansing Employees' Retirement System for several years; and
WHEREAS, Trustee Parker has notified the Board of Trustees that he is retiring from his
position with the City of Lansing effective November 22, 2019; and
WHEREAS, Section 292.05 of the Lansing Codified Ordinances provides that once a
Trustee leaves the employ of the City, such Trustee is considered to have resigned from
the Board and the Board must declare by resolution that the office is vacated.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. The Board of Trustees of the Lansing Employees' Retirement System declares the
office of trustee held by Mark Parker vacated as of the date of this Resolution.
2. The Board of Trustees directs the Retirement Analyst to begin the process to fill the
vacated trustee office within 60 days in accordance with Section 292.05 of the Lansing
Codified Ordinances.
3. The Board of Trustees extends its sincerest thank you to Mark Parker for his years of
service and wishes him well in his future endeavors.
4. All resolutions and parts of resolutions insofar as they conflict with the provisions of
this Resolution are rescinded.
Yeas: Trustees: Bahr, Dedic, Kehler, Kraus, D. Parker, M. Parker, Sanchez-Gazella, Schor - 8
Nays: Trustees: 0
Abstain: Trustees: 0
Absent: Trustees: Washington
CERTIFICATION
As Retirement Analyst to the Board of Trustees of the Lansing Employees' Retirement System, I
certify this is a true and complete copy of a resolution adopted at a meeting of the Board of
Trustees held on November 21, 2019.
November 21, 2019
Karen Williams, Retirement Analyst
Ms. Williams provided a posting for the election to the Board of Trustee. This election
would fill the unexpired Trustee position on the Employees Retirement System Board.
Ms. Williams provided dates for nominating petitions, primary election and general
election. Ms. Williams also requested approval for electronic voting.
It was moved by Trustee Bahr and supported by Trustee Kehler to approve the Trustee
Election posting and fee for electronic voting.
Adopted by the following vote: 8 - 0
Trustee Schor requested that the posting be sent to union representatives, and non
bargaining employees.
Karen Williams reported that the Retirement Office had received seven proposals for
the Legal Services Request for proposal (RFPQ). The special projects subcommittee
met with members from Police and Fire Retirement System to review the proposals.
Trustee Kraus reported her and Trustee Dennis Parker attended the meeting and
decided that the full Employees Retirement System Board as to whether or not to
continue with how the service was provided to the Board or move forward with the
interview process.
Trustee Dennis Parker indicated that the Police and Fire Retirement System made the
recommendation for interviews to be held.
Trustee Kraus expressed concern regarding paying fees from the retirement system for
attorney fees. Trustee Kraus felt that all of the firms were qualified to do the work for
the pension board and that the review met the fiduciary responsibility. Trustee Kraus
expressed concern regarding the working relationship with the City Attorney's office and
City Council with an outside firm. Trustee Kraus noted that the retirement board does
reserve the right to hire an outside counsel.
Trustee Schor stated that he had not heard of any issues with the legal staffing by the
City Attorney's Office.
Trustee Dennis Parker reviewed that when Attorney Lane left Clark Hill, the retirement
boards wanted to perform due diligence as trustees.
Trustee Schor wanted to distinguish if the City Attorney representative was doing its job
or if the Board wanted to use pension funds to get an outside attorney for the job.
Trustee Mark Parker indicated that he felt the retirement boards should work with the
Police and Fire Retirement System.
Trustee Kraus stated that she believes that there was a difference of opinion as to
whether the Employees' Retirement System Board wants to retain the City Attorney's
office to staff the Board.
It was moved by Trustee Kraus and supported by Trustee Schor that the Employees'
Retirement System Board retain the position that City Attorney's Office staff the Board's
legal counsel.
Trustee Dedic recommended that all of the vendors should be re-evaluated periodically.
He did not see an issue with reviewing and interviewing legal firms.
Trustee Dennis Parker reviewed that he believed that process involved interviewing the
law firms and providing the recommendation to the City Attorney regarding legal
representation. Trustee Parker stated if there was no agreement, he believed the next
step would be to decide whether to hire an outside counsel.
Trustee Kraus withdrew her motion.
It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to go
forward with the interview process to make a recommendation to the City Attorney's
office.
Trustee Dedic requested that the Mayor have the City Attorney participate in the
process.
Adopted by the following vote: 8 - 0
Ms. Williams reviewed the Quarterly Expenses Report and the Securities Lending
Report for the month of October 2019.
Trustee Dennis Parker presented Trustee Mark Parker with a plaque of appreciation for
his service to the retirement Board.
The meeting adjourned at 9:32 a.m.
Minutes approved on
Shelbi Frayer, Secretary
Employees Retirement System
Dennis R. Parker, Chairperson
Employees' Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
EMPLOYEES' RETIREMENT SYSTEM
Regular Meeting
City Council Conference Room
10th Floor, City Hall
Lansing, MI
December 19, 2019
Thursday, 8:30 a.m.
The Board met in regular session and was called to order at 8:31 a.m.
Present: Bahr, Dedic, Kehler, Kraus, D. Parker, Sanchez-Gazella (8:37) — 6
Absent: Schor, Washington (excused)
Others: Karen E. Williams, Human Resources Department; Shelbi Frayer, Finance
Department; Brian Lefler, Municipal Advisor; Attorney Ken Lane, Clark Hill (representing
the City Attorney's Office).
It was moved by Trustee Dedic and supported by Trustee Kehler to approve the Official
Minutes of the Employees' Retirement System Board Regular Meeting of November 21,
2019.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Kraus and supported by Trustee Kehler to approve the Official
Joint Minutes of the Employees' Retirement System Board and the Police and Fire
Retirement System Board of November 21, 2019.
Adopted by the following vote: 6 — 0.
Mr. Brian Lefler gave comments regarding having the draft agenda and minutes posted
prior to the meetings. He stated that he would like to have copies of these items so he
able to address items on the agenda. Mr. Lefler wanted to ask questions regarding the
actuarial report.
Attorney Ken Lane opined that there was no requirements to post draft items on the
website. The decision to post draft items would be up to the Board.
Ms. Williams indicated that she could provide an agenda for Mr. Lefler prior to the
meeting.
Employees Retirement System
Regular Meeting of December 19, 2019
Page 2
Secretary's Report:
8 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active
membership: 461. Total deferred 77. 3 death(s), Sharron Bain, died 12/5/2019, age
79, beneficiary of UAW retiree; Leroy Barber, Jr. (Public Service/UAW, retired
1/24/2015), died 12/8/2019, age 63, beneficiary to receive 100%; Vaughan McKinch
(Finance/Executive Management, retired 11/5/1988), died 11/14/19, age 87, no
surviving beneficiary. Refunds made since the last regular meeting mounted to
$15,890.74. Retirement allowances paid for the month of November 2019, amounted to
$2,006,585.31. Total retirement checks printed for the ERS System: 941. Total
Retirement checks printed for both systems: 1698. 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 Dedic to approve the following
requests for regular age & service retirements:
Lisa Thelen (Human Resources — Teamsters 243 CTP), 16 years, 3 months of
service credits, age 59, effective 1/4/2020
Constance L. Klein (Public Service — UAW), 25 years, 7 months of service
credits, age 55, effective 1/2/2020
Trustee Sanchez-Gazella wanted it noted that she did not receive notification that
Lisa Thelen retirement would be on this month's agenda prior to the meeting.
Ms. Williams explained the request for retirement process. In the past, the
process has remained confidential until the application for retirement has been
received. Once the application was received, a personal action form was created
for notification.
The Board discussed better ways for notification and the confidentiality of
retirement applications. The Board agreed that the process would remain
confidential until an application was received. Trustee Schor request that he be
notified when a retirement application has been received.
Adopted by the following vote: 6 -0
Karen Williams reported that Applicant #2019-E0919 was scheduled to see the medical director
in December.
There were request for non -duty disability retirements.
Employees Retirement System
Regular Meeting of December 19, 2019
Page 3
It was moved by Trustee Dedic and supported by Trustee Kehler to excuse Trustee
Washington from the December Employees' Retirement System Board meeting.
Adopted by the following vote: 6 - 0
Mr. Greg Stump, Boomershine Consulting Group, explained the delay in actuarial report due to
a mix-up with the plan assets, but the issue was corrected. Mr. Stump provided an overview of
the Employees' Retirement System actuarial valuation for the plan year ending December 31,
2018. Mr. Stump reviewed the investment performance, funding recommendations and the
funding progress. Mr. Stump discussed the amortization policy, investment risk and
demographic risks. Mr. Stump discussed the state of Michigan uniform assumption and
reviewed figures based on the return assumption of 7%
Mr. Stump reviewed the plan asset information and discussed the smoothing of value assets.
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 23 years
of 30 year closed amortization. Mr. Stump reviewed the long-term projections of
funding and contributions
It was moved by Trustee Kehler and supported by Trustee Dedic to accept the Employees'
Retirement System Actuarial Valuation for the plan year ending December 2018.
Adopted by the following vote: 6 — 0.
Trustee Dedic left the meeting.
Attorney Ken Lane provided the remainder of the Employees Retirement System
Ordinance that had been updated by the various collective bargaining changes.
Attorney Lane recommended reviewing 292.01 (establishment of the plan) and 292.02
(definition section) and 292.14 (membership). He also discussed the 2019
recodification of the plan and deleting obsolete information.
Attorney Ken Lane provided a draft amendment to the Ordinance defining who could be
nominated as a pension beneficiary, similar to what was done in the Police and Fire
Retirement System for review.
The Board reviewed the amendment and agreed that the issue defining who could be
nominated, as a pension beneficiary should be addressed though collective bargaining.
Employees Retirement System
Regular Meeting of December 19, 2019
Page 4
Attorney Lane provided an update regarding the Northern Trust SecurityDocuments.
Attorney Ken Lane reviewed the documents and had no issues. ents.
forwarded the documents to the Information Technology department and was waiting Lane
their review. ng for
Karen Williams reported that nomination petitions for the election of a Board
member
were made available November 25, 2019. The petitions were due December 23, 20119.
Elections if necessary would be held in January.
Karen Williams reported that the Retirement Office contacted the law firms th
selected for interviews. The interviews were scheduled for January 14, 2020 at a were
meeting of both Boards. Joint
Karen Williams reported the fee that was charged for the last update of the
Master by Gabriel, Roeder, and Smith. Minute
It was moved by Trustee Bahr and supported by Trustee Sanchez-Gazella to
the update of the Minute Master with expenses that do not exceed $2,000. the
Adopted by the following vote 5 — 0.
Ms. Williams reviewed the Monthly Investment Report and the Securitie
Report for the month of November 2019. s Lending
Trustee Dennis Parker presented Trustee Mark Parker with a plaque of a r
his service to the retirement Board. pp eciation for
The meeting adjourned at 9:32 a.m.
Minutes approved on
Dennis R. Parker, Chairperson
Employees' Retirement System
Shelbi Frayer, Secretary
Employees Retirement System