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HomeMy WebLinkAbout2020 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting City Council Conference Room 10th Floor, City Hall Lansing, MI January 21, 2020 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:38 a.m. Present: Bahr, Cahill, Dedic, Kraus, D. Parker, Sanchez- Gazella —6 Absent: Trustee Kehler (excused), Schor (excused), Spadafore (excused) Others: Karen E. Williams, Human Resources Department; Shelbi Frayer, Finance Department; Attorney Joseph Abood, Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office); Attorney Aaron Castle, VanOverbeke, Michaud & Timmony, P.C. It was moved by Trustee Dedic and supported by Trustee Bahr to approve the Official Minutes of the Employees' Retirement System Board Meeting of December 19, 2019. Adopted by the following vote: 6 — 0 It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Official Minutes of the Joint Employees' Retirement System Board and the Police and Fire Retirement System Board Meeting of January 14, 2020. Adopted by the following vote: 6 — 0. 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 464. Total deferred: 77. 0 death(s). Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of December 2019, amounted to $2,009,346.88. Total retirement checks printed for the ERS System: 943. 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. There were no requests for regular age and service retirements. Karen Williams reported that the Medical Director has evaluated Applicant #2019-E0919 regarding the requests for duty disability and issued a report to the disability subcommittee for review. It was moved by Trustee Kraus and supported by Trustee Dedic to recess the Employees' Retirement System Board meeting to allow the disability subcommittee to meet. Employees' Retirement System Regular Meeting of January 21, 2020 Page 2 The meeting recessed at 9:41 a.m. The meeting resumed at 9:43 a.m. Attorney Ken Lane explained the duty disability process for the new members. He explained that under the Employees' Retirement System, the Board must concur with the medical director's report regarding whether a member is disabled. The Board determines whether the members is approved for duty or non duty. It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to accept the medical report and approve the disability Dedic to approve the duty disability for Applicant #2019-E0919. Adopted by the following vote: 6 — 0 Karen Williams reported that Trustees Kehler, Spadafore and Schor requested to be excused from the meeting. It was moved by Trustee Bahr and supported by Trustee Dedic to excuse Trustee Kehler, Trustee Spadafore and Trustee Schor for the January meeting. Adopted by the following vote: 6 — 0. Karen Williams reported that there was a MAPERS One Day Conference scheduled for March. She requested that members who wished to attend the Conference to contact the Retirement Office. There are no public comments. Attorney Ken Lane updated the Board regarding the Northern Trust Security report. The report was provided to the Information Technology department for review. Attorney Lane indicated that he distributed the Retirement Ordinance to members for review. Attorney Lane distributed an amendment to section 292.27 that defined who can be named as a beneficiary. Attorney Lane indicated that changes could be established through collective bargaining. Karen Williams provided the Employees' Retirement System Board budget from the previous year so that it could be updated for year 2020. Ms. Williams will provide Quarterly Expenses report at the next meeting with 2019 year to date amounts. Karen Williams introduced the new board members, Irene Cahill and Peter Spadafore. Karen Williams reported that new members are required to have new member training from the legal counsel. Employees' Retirement System Regular Meeting of January 21, 2020 Page 3 Karen Williams reported that each year the Employees' Retirement System elects or confirms its chairperson and vice chairperson. Trustee Dennis R. Parker opened nominations for chairperson of the Employees' Retirement System Board. It was moved by Trustee Kraus and supported by Trustee Bahr to retain Trustee Parker as chairperson of the Employees' Retirement System Board. Trustee Dennis R. Parker accepted the nomination. There were no further nominations. Adopted by the following vote: 6 — 0. Trustee Dennis R. Parker opened nominations for vice chairperson of the Employees' Retirement System Board. It was moved by Trustee Sanchez-Gazella and supported by Trustee Cahill to nominate and elect Trustee Kraus as vice chairperson of the Employees' Retirement System Board. Trustee Antonia Kraus accepted the nomination. There were no further nominations. Adopted by the following vote: 6 -0. Karen Williams requested that members who wished to serve on a particular subcommittee or would like to change subcommittees should contact the chairperson on the retirement analyst. Karen Williams indicated that Trustee Mark Parker indicated that the Retirement Ordinance language could be misinterpreted and requested that a policy be created. Attorney Lane distributed an amended vendor review policy that expands who is covered by the policy. It was moved by Trustee Kraus and supported by Trustee Good to approve the Employees Retirement System Board of Trustees Vendor Review Policy. Adopted by the following vote: 7 - 0 Attorney Ken Lane indicated that the Information Technology manager was invited to the March meeting to discuss the SAS 70 report, review security issues and answer questions. Karen Williams indicated that the Arrivos pension software would need to be updated in accordance with the new collective bargaining agreement. There may be additional costs with some of the changes needed for the retirement calculator with the varying final average compensation periods. Ms. Williams will contact and work with Tegrit for the update. Attorney Aaron Castle introduced himself and thanked the Boards for selecting Vanovereke, Michaud and Timmony as legal counsel. He provided copies of the law firm's request for information and retainer contract for the legal services. Attorney Abood indicated the City Attorney's office had a copy of the document and would be drafting the contract between the Board and VanOverbeke, Michaud and Timmony. Karen Williams provided the Monthly Investment Report for the month of December. It was moved by Trustee Bahr and supported by Trustee Cahill to adjourn the meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 10:06 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 Special Meeting Via Zoom Meeting March 31, 2020 Tuesday, 9:30 a.m. The Board met in special session and was called to order at 9:30 a.m. Present: Bahr, Cahill, Kehler, Kraus, D. Parker, Sanchez- Gazella, Schor, Spadafore —8 Absent: Trustee Dedic (excused) Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel) It was moved by Trustee Spadafore and supported by Trustee Bahr to approve the Official Minutes of the Employees' Retirement System Board Meeting of February 18. 2020. Adopted by the following vote: unanimous It was moved by Trustee Kraus and supported by Trustee Spadafore to adopt temporary rules regarding public participation for remote meetings of the Retirement Board during times of state and/or national emergency, to allow public participation via teleconferencing and/or video conferencing. Adopted by the following vote; unanimous Trustee Spadafore recommended roll call votes for important agenda items. Trustee Spadafore reported that the State of Michigan are encouraging roll calls during remote meetings. 11 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 465. Total deferred: 76. 2 death(s) David L. Benson, (Police/Civilian, teamster 243, retired 1/5/1993), died 1/11/2020, age 76, beneficiary to receive 100%; Ellen J. Walworth, died 2/16/2020, age 95, spouse of Nonbargaining retiree. Refunds made since the last regular meeting mounted to $0. Retirement allowances paid for the month of February 2020, amounted to $2,020,724.80. Total retirement checks printed for the ERS System: 945. Total Retirement checks printed for both systems: 1699. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0 It was moved by Trustee Spadafore and supported by Trustee Kraus to approve the request for regular age and service retirements: Dawn Burton (District Court — Teamster 243), 8 years, 4 months of service credits, age 58, effective April 1, 2020 Employees' Retirement System Special Meeting of March 31, 2020 Page 2 It was moved by Trustee Spadafore and supported by Trustee Kraus to approve the request for regular age and service retirements (continued): Joan Jackson Johnson (HRCS — Executive Management), 13 years, 3 months of service credits, age 71, effective April 1, 2020. Cameron Priest (Planning — Teamster 243 CTP), 25 years of service credits, age 50, effective April 4, 2020. William C. Rieske (Planning — Teamster 214), 16 years, 6 months of service credits, age 66, effective March 21, 2020. Adopted by the following roll call vote: Yes: Bahr, Cahill, Kehler, Kraus, D. Parker, Sanchez-Gazella, Schor, Spadafore — 8. No: 0. There were no requests for duty disability. There were no requests for non -duty disability. There were no requests for refunds of accumulated contributions. It was moved by Trustee Spadafore and supported by Trustee Bahr to excuse Trustee Dedic from the March Employees' Retirement System. Adopted by the following vote: unanimous There were no public comments. Karen Williams reported that the retirement ordinance has been forwarded to subcommittee members for review. Ms. Williams indicated that the Teamsters Contract had been ratified but not yet included within the Ordinance. It was moved by Trustee Kraus and supported by Trustee Cahill to approve the Employees' Retirement System Budget 2020. Trustee Schor reported that the Police and Fire Retirement Board has requested that Asset Consulting Group come to the April meeting. He recommended that Asset Consulting Group also attend the Employees Retirement System to update the Boards regarding the portfolios. Adopted by the following vote: roll call: Yes. Bahir, Cahill, Kehler, Kraus, D. Parker, Sanchez-Gazella, Schor, Spadafore — 8 No: 0. Employees' Retirement System Special Meeting of March 31, 2020 Page 3 It was moved by Trustee Spadafore and supported by Trustee Sanchez-Gazella to approve the following 2020 Employees' Retirement System: Disability Subcommittee: D. Parker, Sanchez-Gazella, Cahill Investment Subcommittee: Dedic, D. Parker, Kraus Kehler Education Subcommittee: Cahill, Dedic Bahr Special Projects Subcommitee: Kraus, Cahill, Spadafore Adopted by the following vote: unanimous It was moved by Trustee Spadafore and supported by Trustee Kehler to untable the discussion regarding the legal services contract to place it before the Board for action. Adopted by the following vote: unanimous It was moved by Trustee Bahr and supported by Trustee Kehler to approve the Employees' Retirement System legal services contract. Adopted by the following vote: unanimous Karen Williams reported that the Finance Department submitted confirmation of the FY2020 Employees' Retirement System pension employee contribution on February 21, 2020. The memo stated that $10,698,401 was transferred by the City to the Employees' Retirement System for the calendar year 2019(fiscal year 2020) which is 100% of the actuarially -determined contribution amount from the 12/31/18 Employees' Retirement System actuarial valuation. It was moved by Trustee Kraus and supported by Trustee Cahill to adjourn the meeting. Adopted by the following vote: unanimous. The meeting adjourned at 9:56 a.m. Minutes approved on Dennis R. Parker, Chairperson Employees' Retirement System Shelbi Frayer, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Special Meeting April 21, 2020 Via Zoom Meeting Tuesday, 9:30 a.m. The Board met in special session and was called to order at 9:30 a.m. Present: Bahr, Cahill, Kraus, D. Parker, Sanchez- Gazella, Schor —6 Absent: Trustee Kehler, Spadaford (excused) Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel); Nathan Burk, George Tarlas, Asset Consulting Group. It was moved by Trustee Kraus and supported by Trustee Sanchez-Gazella to approve the Official Minutes of the Employees' Retirement System Board Meeting of March 31. 2020. Adopted by the following vote: unanimous It was moved by Trustee Dedic and supported by Trustee Cahill to consider late items (late items will be considered as part of the regular portion of the meeting to which they relate). Adopted by the following vote: unanimous Secretary's Report: 6 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 469. Total deferred: 75. 7 death(s) Kenneth Coin, (District Court NonBargaining, retired 11/6/2006), died 4/4/2020, age 63, no beneficiary; Eleanor Conarton, (NonBargaining, retired 8/17/1979), died 3/31/2020, age 98, beneficiary to receive 50%; Daniel R. David (Teamster 523, retired 6/14/2003), died 4/10/2020, age 67, beneficiary to receive 100%; Robert Graham (Teamsters 244, retired 11/21/1992), died 3/12/2020, age 83, spouse to receive 50%; Barbara J. Kerr (NonBargaaining, retired 11/21/1992), died 3/29/2020, age 93, no surviving beneficiary; Jay C. Lane (Teamster 243, retired 8/j/1992), died 4/3/2020, age 79, spouse to receive 50%; John Peterson, (UAW, retired 11/1/2008), died 3/19/2020, age 71, no beneficiary. Refunds made since the last regular meeting mounted to $0. Retirement allowances paid for the month of March 2020, amounted to $2,015,609.15. Total retirement checks printed for the ERS System: 942. Total Retirement checks printed for both systems: 1692. Eligible domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Employees' Retirement System Special Meeting of April 21, 2020 Page 2 It was moved by Trustee Bahr and supported by Trustee Dedic to approve the request for regular age and service retirements: Mary Jo Powell (NonBargaining — Teamster 243), 16 years, 8 months of service credits, age 66, effective May 16, 2020 Adopted by the following roll call vote: Unanimous There were no requests for duty disability. There were no requests for non -duty disability. There were no requests for refunds of accumulated contributions. Trustee Cahill reported that she attended the One Day MAPERS Seminar and enjoyed her experience. She noted that it was her first MAPERS Conference and she felt that she learned a lot. Trustee Sanchez-Gazella reported that she attended the One Day MAPERS Seminar in March and noted that there was good information on fiduciary duty, governance and investment risk. Karen Williams reported that Trustee Spadafore was not able to attend the meeting. Trustee Sanchez-Gazella reported that Trustee Kehler was unable to attend the meeting It was moved by Trustee Schor and supported by Trustee Bahr to excuse Trustee Kehler and Trustee Spadafore from the April Employees' Retirement System. Adopted by the following vote: unanimous There were no public comments. Attorney Aaron Castle provided a legal counsel report. Attorney Castle provided a legal opnion that discussed the deferred retirement eligibility of Ms. Karen Phelps. Attorney Castle concluded that based upon Ms. Phelp' current age and her credits service, that upon application to the Board, Ms. Phelps; would be eligible to commence receipt of her retirement allowance from the Retirement System, effective as of the first day of the calendar month following the month in which her application for retirement is filed with the Board. Attorney Castle provided a legal report to review the Coronavirus Aid Relief and Economic Security Act (CARES) went into effect March 27, 2020 that provides financial aid to individuals and businesses impacted by the ongoing Coronavirus pandemic in the United States. Attorney Castle discussed some of the provision that could affect the retirement plans regarding withdrawal, loan distributions. He indicated that the Retirement Ordinance would need to be amended to allow the provisions. Employees' Retirement System Special Meeting of April 21, 2020 Page 3 Attorney Castle indicated that the deadline for withdrawals without penalty would be end of the plan year. The amendment to the Retirement Ordinance would need to be made to be plan documents prior to the end of 2020. Karen Williams reported that she had been contacted by duty disability retirees that had inquired if the Employees' Retirement System would extend the deadline to submit income verifications due to the Coronavirus pandemic. Duty Disability retirees also inquired if the verifications needed to be notarized. Attorney Castle noted that the Board would need to take action to waive its rules, but cautioned regarding changing the practice of having the forms notarized. Trustee Cahill indicated that most UPS stores had notaries and retirees could check with their bank. Trustee Schor recommended that if there were issues they could be reviewed on a case by case basis. Karen Williams reported that the retirement ordinance has been forwarded to subcommittee members for review. Mr. George Tarlas and Mr. Nathan Burk provided an update of the Employees' Retirement System Board financial portfolio. Mr. Burk indicated at the start of the year, equity markets were at an all- time high, and labor markets and gas prices ere stable. There are been two shocks to the portfolio due to the Coronavirus and oil prices dropping. With the social distancing and the economy closed, unemployment is at an all-time high and there is a low demand for oil. Mr. Burk reviewed the performance of the portfolio and maintained the Board was strategically allocated and diversified in its assets for the long term, but he recommended changes to the Board fixed asset allocation. It was moved by Trustee Cahill and supported by Trustee Bahr to adjourn the April Meeting of the Employees' Retirement System Board. Adopted by the following vote: 7 - 0 The meeting adjourned at 10:06 a.m. Minutes approved on Dennis R. Parker, Chairperson Employees' Retirement System Shelbi Frayer, Secretary Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Special Meeting Via Zoom Meeting June 16, 2020 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 8:30 a.m. Present: Bahr, Cahill, Dedic, Kehler, Kraus, D. Parker, Sanchez-Gazella. —7 Absent: Trustee Schor, Spadafore. (Excused) Others: Karen E. Williams, Angela Bennett, Finance Department; Eric Brewer, City Council; Attorney Kenneth Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Kraus and supported by Trustee Bahr to approve the Official Minutes of the Joint Employees' Retirement System and Police and Fire Retirement Board Meeting of May 26, 2020. Adopted by the following vote: unanimous Secretary's Report 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 470. Total deferred: 74. 1 death(s), Sidney Worthington (City Council, retired 8/1/2004), died 3/19/2020, age 73, beneficiary to receive 100%. Refunds made since the last regular meeting amounted to $20,427.17. Retirement allowances paid for the month of May 2020, amounted to $2,017,067.53. Total retirement checks printed for the ERS System: 943. Total Retirement checks printed for both systems: 1695. Eligible domestic relations orders received:0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no requests for Regular Age & Service retirements. There were no requests for non -duty disability. There were no requests for refunds of accumulated contributions. Karen Williams reported that MAPERS Fall conference was scheduled for September 12-15 at Mackinac Island. She requested that those who wished to attend the conference contact the Retirement Office. It was moved by Trustee Sanchez-Gazella and supported by Trustee Kehler to excuse Trustee Spadafore and Trustee Schor. Adopted by the following vote: unanimous Employees' Retirement System Special Meeting of June 16, 2020 Via Zoom Meeting Page 2 Attorney Castle distributed an opinion regarding other income offsets in response to inquiries at the last month's meeting. Attorney Castle discussed Section 292.34 of the Retirement Ordinance that requires the Retirement System to reduce a disability retirement allowance if a disability retiree becomes engaged in other gainful employment. Attorney Castle opined that additional income received through an inheritance or federal stimulus package does not constitute pay or remuneration from a gainful occupation, business or employment, and although disability retirees are required to report all income earned, the Retirement Board is not required to reduce such amounts from disability retirement allowances being paid by the Retirement System. Attorney Castle recommended amending the existing Duty Disability Income Verification Police to include guidelines for defining earnings. It was moved by Trustee Cahill and supported by Trustee Kehler to have Attorney Castle draft an amendment to the Duty Disability Income Verification Policy. Adopted by the following vote: unanimous Attorney Castle distributed an opinion regarding member trustee election. Trustee Cahill's position on the Board was scheduled to expire at the end of June. Attorney Castle reviewed if the retirement board has the authority to construe the provisions of the Retirement Ordinance and make a determination regarding the effect of the expiration of a member Trustee's term of office in the absence of an election to file the expiring term. Attorney Castle reviewed at the last meeting, the Employee's Retirement System temporarily suspended its election procedures in light of the current health crisis of Covid-19, and the restrictions on public gathers and social distancing recommendations. Attorney Castle provided possible options: waiver of the primary election requirement; electronic or absentee voting only; reduction/removal of the member signature requirement; blind draw in the event of a tie. Trustee Kraus expressed concern that members could not participate in the election process with the closure of City Hall. Members may not be able to gather signatures or have access to voting with some members who may be voluntarily furloughed, or still working at home. Attorney Castle reported that virtual training for new trusteed was scheduled for June 24, 2020. Attorney Castle reported that he reviewed Bargaining Union Memorandum of Understanding regarding the voluntary furlough and made recommendations for an amendment in order for retirement service credits to continue to accrue for furloughed members. The memorandum have been amended. Employees' Retirement System Special Meeting of June 16, 2020 Via Zoom Meeting Page 3 Karen Williams reported that members have the Retirement Ordinance for review. The Retirement Ordnance had been referred to the Special Project committee, but Ms. Williams explained that there had been additional labor agreements completed since the Board received the Ordinance. Ms. Williams will contact the City Attorney's Office to see if the Board has the latest Ordinance. Karen Williams provided monthly investment report for the month ending May 31, 2020. It was moved by Trustee Bahr and supported by Trustee Cahill to adjourn the meeting. Adopted by the following vote: unanimous. The meeting adjourned at 10:01 a.m. Minutes approved on Shebi 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 Special Meeting Via Zoom Meeting July 21 2020 Tuesday, 9:30 a.m. The Board met in special session and was called to order at 9:30 a.m. Present: Bahr, Cahill, Dedic, Fox, Kraus, Schor, Spadafore, —7 Absent: Trustee Parker, Sanchez-Gazella (excused) Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel). Karen Williams read into the minutes the following letter from the Office of Mayor regarding staffing changes. July 14, 2020 City of Lansing Employees' Retirement Board c/o Ms. Karen Williams 124 W. Michigan Ave. 8th Floor Lansing, MI 48909 Dear Board Members: Please note some of the changes in our staffing and the corresponding effect on your board membership. I have named Judy Kehler as the new Chief Strategy Officer to fill the spot left by Shelbi Frayer's resignation. Cheryl Fox will serve as the interim Treasurer and will fill the Treasurer role on the ERS board as required by ordinance. Jake Brower is the interim finance director and will fill the role of non-voting secretary for the July meeting. M In August, Rob Widigan will come on board as the Finance Director and take the non-voting Secretary spot. Please let me know if you need further information regarding these positions, or if there are any concerns. Sincerely, Andy Schor Mayor Employees' Retirement System Special Meeting of July 21, 2020 Page 2 It was moved by Trustee Spadafore and supported by Trustee Bahr to approve the Official Minutes of the Employees' Retirement System Board Meeting of June 16, 2020. Adopted by the following vote: unanimous There were no public comments. Secretary's Report: 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 478. Total deferred: 74. 3 death(s) Robert Ayles, (UAW, retired 3/1/1997), died 6/21/2020, age 83, beneficiary to receive 50%; Ruth Cutler (Teamsters, retired 9/23/1987), died 5/17/2020, age 94, no surviving beneficiary; Kenneth Harris (NonBargaining, retired 9/15/1987), died 5/29/2020, age 94. Refunds made since the last regular meeting mounted to $20,427.17. Retirement allowances paid for the month of June 2020, amounted to $2,017,067.53. Total retirement checks printed for the ERS System: 944. Total Retirement checks printed for both systems: 1696. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Bahr and supported by Trustee Dedic to approve the request for regular age and service retirements: Michael W. Hayes, (Public Service — UAW), 26 years, 6 months of service credits, age 53, effective July 26, 2020. Jeffrey Hettich (Public Service — Teamster 243 Supervisory), 18 years of service credits, age 61, effective August 1, 2020. Richard J. LaMay (Public Service — Teamster 243), 16 years, 9 months of service credits, age 58, effective July 1, 2020. Adopted by the following roll call vote: Unanimous There were no requests for duty disability. There were no requests for non -duty disability. It was moved by Trustee Bahr and supported by Trustee Spadafore to approve the following requests for refund of accumulated contributions; D'Artagnan M. Collier, Teasmter 243 Supervisory, not vested, $12,923.61 Vincente Pino-Marquez, Teamster 243 CTP, not vested, $1,172.82 Mary Riley, Executive Management, not vested, $14,700.26. Adopted by the following vote: unanimous Employees' Retirement System Special Meeting of July 21, 2020 Page 3 Karen Williams reported that members who wished to attend the MAPERS Fall Conference should contact the Retirement office regarding registrations. It was moved by Trustee Spadafore and supported by Trustee Dedic to excuse Trustee Parker and Trustee Sanchez-Gazalla from the July Employees' Retirement System. Adopted by the following vote: unanimous There were no public comments. Attorney Aaron Castle provided a legal counsel report regarding other income offsets in response to questions asked by trustees and retirees. Attorney Castle reviewed his opinion that additional income received through an inheritance or federal stimulus packages does not constitute pay or remuneration from a gainful occupation, business or employment, and the Retirement Board is not required to reduce such amounts from disability retirement allowances being paid by the Retirement System. Attorney Castle provided a copy of the policy that clarifies other income. The policy included, the purpose and definitions. The policy outlined the income verification process, workers' compensation offset and other income offset. It was moved by Trustee Irene Cahill and supported by Trustee Bahr to adopt the City of Lansing Police and Fire Retirement System Disability Offset policy. . Attorney Castle reported that new trustee orientation and training was held June 24, 2020. Attorney Castle inquired if the Employees Retirement System wanted to have July 22, 2020 orientation, because most of the new trustees attended the June training. He stated that he would arrange one-to-one orientation with new trustees. Trustee Kraus requested if members can be notified of the sessions as she was interested in attending. Attorney Castle indicated that the deadline for withdrawals without penalty would be end of the plan year. The amendment to the Retirement Ordinance would need to be made to be plan documents prior to the end of 2020. Karen Williams reported that she received an Employees' Retirement System ordinance amendment from City Council for the Board's review. The amendment would add a member to the ERS Board of Trustees, who is a Lansing resident and who does not receive retirement benefits from the system. Trustee Spadafore added that City Council had scheduled a public hearing on July 27 for the ordinance amendment. The amendment would not replace any member on the Board; it would expand the membership to include a City of Lansing resident. Trustee Schor added that he sent the amendment to City Council for consideration and a council member requested the Employees' Retirement System input. Trustee Schor indicated that his intent was to have a non -system Lansing resident on the Board. He felt that it would add tremendous value to the Board. Trustee Kraus inquired about what would happen in the future regarding the statewide seat when Trustee Dedic leaves the board. Trustee Schor indicated that ordinance does not remove that seat, but the council can remove the seat in the future. Trustee Spadafore indicated that he supports adding a Lansing resident, and keeping the statewide seat for the Board at this time. It was moved by Trustee Schor and supported by Trustee Bahr to recommend to Council the approval of the Employees Retirement System ordinance amendment to add a member to the Board. Adopted by the following vote: unanimous Karen Williams updated the retirement Board that the Trustee Election had been suspended due to Covid-19 virus and the Governor's Stay at home order. Ms. Williams informed members that employees were scheduled to return in August. Attorney Castle indicated that the ERS Board had suspended its election rules during the Governor's Stay at home policy. Attorney Castle recommended that the election proves could proceed and that the Board should vote to re -instate the trustee election policy. It was moved by Trustee Spadafore and supported by Trustee Bahr to reinstate the election procedures in August. Adopted by the following vote: unanimous Karen Williams reviewed the monthly investment report for the month ending June 30, 2020. It was moved by Trustee Bahr and supported by Trustee Spadafore to adjourn the July Meeting of the Employees' Retirement System Board. Adopted by the following vote: unanimous The meeting adjourned at 9:06 a.m. Minutes approved on Jake Brower, Secretary Employees' Retirement System Antonia Kraus, Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Via Zoom Meeting September 8 2020 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:30 a.m. Present: Bahr, Cahill, Dedic, Fox, Kraus, Parker, Sanchez-Gazella, Schor, Spadafore, — 9 Absent: 0 Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel). It was moved by Trustee Spadafore and supported by Trustee Kraus to approve the Official Joint Minutes of the Employees' Retirement System Board and the Police and Fire Retirement System Board Meeting of August 18, 2020. Adopted by the following vote: unanimous There were no public comments. Secretary's Report: 2 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 483. Total deferred: 75. 2 death(s): Eleanor R. Joppie, Police/Civilian, retired 4/16/1982, died 8/4/2020, age 98, no surviving beneficiary; Gerald F. Nestell, Parks, retired 2/29/1992, died 8/22/2020, age 84, surviving beneficiary to receive 100%. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of August 2020, amounted to $2,023,257.65. Total retirement checks printed for the ERS System: 947. Total Retirement checks printed for both systems: 1705. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Karen Williams explained that Mr. Hettich has requested to change his retirement date from August 1, 2020 to August 15, 2020. He submitted an application for August 1, 2020, and did not submit paperwork to change his date. He continued to work until August 15 retirement date. The Retirement Office contacted the chair and legal counsel for direction. Attorney Castle reviewed the situation and provided the following direction: 1. The Board will need to rescind its approval of his retirement as of 8/1/2020; 2. Mr. Hettich must submit new paperwork requesting his retirement be effective 8/15/2020 (or some subsequent date); Employees' Retirement System Regular Meeting of September 8, 2020 Page 2 3. The Board must approve his new retirement date, including possibly deciding whether it is willing to waive the requirement that his application be submitted no less than 30 days prior to the effective retirement date; and 4. Mr. Hettich will have to repay all amounts he received from the Retirement System from 8/1 until his new retirement date. Trustee Spadafore inquired if Mr. Hettich's new retirement was contingent on the four items listed by the legal counsel. Attorney Castle opined that the retirement was contingent upon receipt of new paperwork, that the Board must waive the 30 day requirement and also that Mr. Hettich repay the system for the overage he received since August 1. It was moved by Trustee Bahr and supported by Trustee Sanchez-Gazella to reconsider Mr. Jeffrey Hettich's request to rescind its approval for his retirement of August 1, 2020. Adopted by the following; Unanimous It was moved by Trustee Bahr and supported by Trustee Kraus to approve the request for regular age and service retirements: Irene Bost, (District Court — Teamsters 243 District Court), 3 years, 6 months of service credits (PLUS reciprocal service of 16 years, 5 months from Ingham County for a total of 19 years, 5 months) age 59, effective October 3, 2020. Jeffrey A. Hettich (Public Service — Teamsters 243 Supervisory), 18 years of service credits, age 61, effective August 15, 2020. Adopted by the following roll call vote: Unanimous There were no requests for duty disability. There were no requests for non -duty disability. There were no requests for requests for refund of accumulated contributions. Attorney Castle also reviewed a memo distributed by Vanoverbeke, Michaud & Timmony, P.C. that discussed trustee election policies and procedure issues and challenges during the Coronavirus pandemic. He noted that the Employees' Retirement Board already had a policy in place that addressed electronic voting and other concerns. Employees' Retirement System Regular Meeting of September 8, 2020 Page 3 Karen Williams updated the Employees Retirement System Board regarding the Trustee Election. The deadline for turning in nominating petitions would be September 18. If necessary, primary and general election would be held in the following weeks. Members would be able to vote in person or by electronic ballots. Instructions on the elections would be posted. Karen Williams reviewed the monthly investment report for the month ending August 30, 2020. Trustee Kraus requested that Asset Consulting Group provide an update of the Board's real estate portfolio, at their next presentation. Trustee Spadafore, as a point of order, requested that in the future, all votes be roll call, as recommended by the City Attorney and Attorney General. It was moved by Trustee Bahr and supported by Trustee Kraus to adjourn the September Meeting of the Employees' Retirement System Board. Adopted by the following vote: unanimous The meeting adjourned at 9:03 a.m. Minutes approved on 10/20/2020 Robert Widigan, 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 Via Zoom Meeting October 20 2020 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:40 a.m. Attorney Aaron Castle reviewed criteria for the recently passed Michigan legislation to amend the Open Meetings Act to allow remote meetings under certain conditions. He detailed that members should state that they are attending the meeting remotely and their location. Present: Bahr (Lansing), Dedic (Laingsburg), Kirkland (Lansing), Kraus (Delta Township), Parker (Lansing), Sanchez-Gazella (Lansing), Schor (Lansing), Spadafore (Lansing), —8 Absent: 0 Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Greg Stump, Boomershine Consulting Group; Nathan Burk, Asset Consulting Group; Attorney Aaron Castle, (legal counsel). Karen Williams reported the Trustee Election results. Mr. Larry Ebright, Public Service (Wastewater) filed a valid petition and receive the most votes in the general election held on Wednesday, September 30. Ms. Williams provided voting statistics, there were 128 votes in the election: 72 votes for Larry Ebright, 56 votes for Angelia Shuck. The vote was held electronically, with one paper vote. The cost of the election via Simply Voting was $265.00. Karen Williams also reported that Ms. Shuck inquired regarding a recount for the ERS trustee election. Attorney Aaron Castle stated that he would review the Boards' election rules and notify the chairperson and the retirement office. Trustee Dedic stated that the election was done by electronic balloting. He questioned if the count would change within the balloting. There was no cause to order a new election. Employees' Retirement System Regular Meeting of October 20, 2020 Page 2 It was moved by Trustee Dedic and supported by Trustee Kraus as Board of Canvassers to accept the election results and declare Mr. Larry Ebright as the ERS Trustee. Adopted by the following roll call vote: Yes: Bahr, Dedic, Kirkland, Kraus, D. Parker, Sanchez-Gazella, Schor, Spadafore. — 8. No. — 0. There were no public comments. It was moved by Trustee Kraus and supported by Trustee Bahr to approve the Official Minutes of the Employees' Retirement System Meeting of September 8, 2020. Adopted by the following vote: Yes: Bahr, Dedic, Kirkland, Kraus, D. Parker, Sanchez- Gazella, Schor, Spadafore. — 8. No — 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: 482. Total deferred: 73. 4 death(s): Neva Jean Ghastin, died 9/2/2020, age 90, Spouse of ERS Retiree (District Court), no beneficiary; Walter Norris Jr., Director of Housing, retired 2/1/2012, died 9/14/2020, age 75, no surviving beneficiary; Earlie L. Peterson, Public Service, retired 7/12/2003, died 7/5/2020, age 71, no surviving beneficiary; Gordon H. Stafford, Public Service, retired 1/4/1979, died 6/25/2020, age 103, no surviving beneficiary. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of September 2020, amounted to $2,020,738.51. Total retirement checks printed for the ERS System: 946. Total Retirement checks printed for both systems: 1701. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Spadafore and supported by Trustee Kraus to approve the request for regular age and service retirements: Jerry Simpson (Public Service — UAW), 25 years, 5 months of service credits, age 61, effective October 25, 2020. Laurie Stocker (Finance — T243 Supervisory), 16 years, 9 months of service credits, age 58, effective October 17, 2020. Adopted by the following roll call vote: Yes: Bahr, Dedic, Kirkland, Kraus, D. Parker, Sanchez- Gazella, Schor, Spadafore. — 8. No. 0. Employees' Retirement System Regular Meeting of October 20, 2020 Page 3 There were no requests for duty disability. There were no requests for non -duty disability. It was moved by Trustee Spadafore and supported by Trustee Kirkland to approve the following request for refund of accumulated contributions: Dennis Rouhier, Police (Civilian), not vested, $4,543.20 Adopted by the following roll call vote: Yes: Bahr, Dedic, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore. — 8. No — 0. Attorney Aaron Castle provided a legal counsel report and reviewed the provisions of Senate Bill 1108 that would amend the Open Meeting Act (OMA) to permit meetings of a public body to be held electronically or to otherwise allow remote participation by members of the public body under certain specified circumstances, and to provide procedures and requirements for holding an electronic public meeting in accordance with the OMA. Attorney Castle detailed that procedures include at the start of any meeting, members would need to state if they are attending remotely and at what location. The legislation provided deadlines that included remote meeting for any reason through the end of the year. After year-end, members could only attend remotely under specific circumstances. The meeting posting and agenda must be posted. Trustee Spadafore stated that he requested the City Attorney to draft rules for City Board meeting in compliance with the Open Meeting Act. He stated that he would have those rules provided to the Employees' Retirement System Board. Attorney Castle also distributed a resolution for Board review and discussion that would identify those individuals who are authorized to sign on the Board's behalf. The resolution would include transfer of funds or trading instruction, disbursement of funds, direction to investment managers, investment consultant or custodial bank and the execution of legal documents. Attorney Castle recommended that the authorized signer should be Board Chairperson, Vice Chairperson or City Treasurer. Trustee Parker provided background regarding the request for the Board's Authorized Signers resolution. Trustee Parker stated the authorized signers for one of its investments was changed without the Board's knowledge and approval. Documents were submitted on behalf of the Board. The Board became aware of the change when alerted by its investment consultant. Mr. Robert Widigan provided an update on the actuarial valuation. Mr. Widigan indicated that in August, it was brought to his attention that Mr. Stump was waiting on deliverable from the City for the actuarial. Mr. Widigan and finance staff arranged a meeting with Mr. Stump to discuss what was needed from Finance to complete the actuarial. Since that time, Mr. Stump had received all the requested information except that financial statements, which will be sent soon. Mr. Widigan and the Finance staff will work toward providing the requested and necessary data in compliance with Board policy. Mr. Greg Stump stated that he would give an actuarial valuation report at the November meeting and the full report in December. Mr. Nathan Burk, Asset Consulting Group provided a presentation regarding the Police and Fire Retirement System Fund Structure and Industry Discussion. Mr. Burk reviewed the system's asset allocation, provided a performance and fee review. Mr. Burk provided an overview of the public fund industry data. Mr. Burk reviewed the monthly investment report for the month ending September 30, 2020. It was moved by Trustee Bahr and supported by Trustee Kraus to adjourn the October Meeting of the Employees' Retirement System Board. Adopted by the following roll call vote: Yes: Bahr, Dedic, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore. — 8. No — 0. The meeting adjourned at 10:43 a.m. Minutes approved on 11/10/2020 Robert Widigan, 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 Via Zoom Meeting December 15 2020 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:40 a.m. Present (attending remotely): Bahr (Lansing), Dedic (Laingsburg), Ebright (Lansing), Kirkland (Lansing), Kraus (Delta Township), Parker (Lasing), Sanchez-Gazella (Lansing), Schor (Lansing), Spadafore (Lansing), —9 Absent: 0 Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Greg Stump, Boomershine Consulting Group; Attorney Aaron Castle, (legal counsel). It was moved by Trustee Kraus and supported by Trustee Kirkland to approve the Official minutes of the Joint Employees' Retirement System meeting and Police and Fire Retirement System meeting of November 10, 2020. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore — 9. No There were no public comments. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 480. Total deferred: 72. 1 death(s) Michael Baird, (Public Service — UAW, retired 1/4/1999), died 11/7/2020, age 74, spouse to receive 50%. Refunds made since the last regular meeting mounted to $21,119.79. Retirement allowances paid for the month of November 2020, amounted to $2,024,241.25. Total retirement checks printed for the ERS System: 943. Total Retirement checks printed for both systems: 1697. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no applications from regular age and service retirements. There were requests for duty disability. There were no requests for refunds of accumulated contributions. Karen Williams provided retirement board December invoices for approval in accordance with the new authorized signers policy. Employees' Retirement System Regular Meeting of December 15, 2020 Page 2 Attorney Castle indicated that the pre -approval was a fiduciary best practice. It was moved by Trustee Spadafore and supported by Trustee Linda Sanchez-Gazella to approve the December invoices. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore — 9. No There were no public comments. There were no requests for duty disability. There were no requests for non -duty disability. Attorney Aaron Castle provided a legal counsel report and reviewed the income Research & Management selection as the system's Core Fixed Income. The investment was pending contract review and negotiation Attorney Castle reported that he reviewed the Northern Trust SOC 1 Report with respect to its internal controls and objectives of its custody and fund services system. Attorney opined that he did not have any concerns with the procedures. Attorney Castle updated the Board the Senate Bill no 1246 was recently passed by the Senate and would further amend the Michigan Open Meeting Act to allow public bodies to meet remotely under any circumstances through March 30, 2021. Greg Stump reviewed the actuarial valuation report for the period ending in December 31, 2019. Mr. Stump reviewed demographic information, funding level and the contribution calculation for the year. He discussed the market and actuarial rate of return. Greg Stump requested to attend the February Joint meeting to discuss the experience study proposed recommendations. It was moved by Trustee Spadafore and supported by Trustee Kirkland to accept the Employees' Retirement System actuarial valuation for the period ending December 31, 2019. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore — 9. No Karen Williams distributed the 2021 meeting schedule for the Employees' Retirement System Board. She noted that the Police and Fire Retirement System Board changed its November meeting to November 9th, 2021. Trustee Kraus requested that the Employees' Retirement System Board change its November meeting date to November 9, 2021. It was moved by Trustee Kraus and supported by Trustee Kirkland to accept the 2021 meeting schedule as amended. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore — 9. No Mr. Burk reviewed the monthly investment report for the month ending November 30, 2020. It was moved by Trustee Bahr and supported by Trustee Kraus to adjourn the December Meeting of the Employees' Retirement System Board. Adopted by the following roll call vote: Yes: Bahr, Dedic, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Spadafore. — 8. No — 0. The meeting adjourned at 9:58 a.m. Minutes approved on Robert Widigan, Secretary Employees' Retirement System Dennis R. Parker, Chairperson Employees' Retirement System