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HomeMy WebLinkAbout2021 ERS MinutesOFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM Regular Meeting Via Zoom Meeting January 19, 2021 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:32 a.m. Present (attending remotely): Bahr (Lansing), Dedic (Laingsburg), Ebright (Lansing), Kirkland (Lansing), Kraus (Delta Township), Parker (Lasing), Sanchez-Gazella (Lansing), Schor (Lansing), Wood (Lansing), —9 Absent: 0 Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Attorney Aaron Castle, (legal counsel). Karen Williams reported that the Lansing City Council has appointed Carol Wood as the city council representative to the Police and Fire Retirement Board for 2021. It was moved by Trustee Kraus and supported by Trustee Ebright to approve the Official minutes of the Joint Employees' Retirement System meeting and Police and Fire Retirement System meeting of December 9, 2020 (as amended). Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Official Minutes for the Employees' Retirement System Board meeting of December 15, 2020. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No There were no public comments. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total active membership: 477. Total deferred: 71. 1 death(s) Harvey Cater, (Parks — UAW, retired 10/20/1988), died 12/12/2020, age 87, spouse to receive 50%. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of December 2020, amounted to $2,023,068.18. Total retirement checks printed for the ERS System: 944. 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. Employees' Retirement System Regular Meeting of January 19, 2021 Page 2 There were no applications from regular age and service retirements. There were requests for duty disability. Karen Williams reported there was a request for non -duty disability for applicant #2021- E0119. The applicant has battled several health issues and unable to return to work full time. The applicant has contacted the director of the department and has the support of the department. The non -duty disability application was referred to the disability subcommittee for review. It was moved by Trustee Wood and supported by Trustee Bahr to send the applicant #2021-E0119 to the medical director review contingent upon approval and recommendation from the disability subcommittee. Trustee Sanchez-Gazella reported that she had met with the applicant and spoken with the department director and supports the process moving forward. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No It was moved by Trustee Wood and supported by Trustee Bahr to approve the following request for refund of accumulated contribution: Jordan Meckstroth, Public Service, not vested, $3,870.29 Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No Karen Williams updated the conferences available through IFEBP, NCPERS, and MAPERS. She reported that a MAPERS One Day Conference was to be held Friday, February 12, 2021. The one day session was geared toward new trustees. She requested that members who were interested contact the Retirement Office to be registered for the session. Karen Williams provided retirement board January invoices (Northern Trust, Boomershine) for approval in accordance with the new authorized signers policy. Employees' Retirement System Regular Meeting of January 19, 2021 Page 3 It was moved by Trustee Wood and supported by Trustee Kirkland to approve the January invoices. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 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. Attorney Castle reviewed the negotiated contract provision for the Employees' Retirement System Board. He also reviewed an Act 314 compliance opinion that legally qualified the investment. The opinion discusses the terms of the investment and a legal analysis of how the investment qualified under Act 314. Attorney Castle was asked to review the Police and Fire Retirement Ordinance regarding a health insurance fund. Attorney Castle provided analysis of the ordinance section regarding the IRS Code 401 H account. The IRS stated that contributions to the health insurance fund should be no more than 25% of the aggregate pension contributions. A separate VEBA has been recommended for the health care contributions funding. Attorney Castle discussed IRS requirements and the language in the retirement ordinance. As of last valuation, there were over $34.3 million in the health insurance fund. Attorney Castle provided an overview of distribution schedule. The Board set the assumptions for the health insurance fund and has investment fiduciary for the fund. Trustee Wood Castle requested additional detail regarding the annual city contributions. Attorney Castle was asked to create a memo regarding the Solar Winds hack. The memo would requesting vendors to notify the Board if they were impacted by the Solar Winds breach. Attorney Castle indicated that his law firm uses a competitor to the Solar Winds software and were not affected by the breach. Employees' Retirement System Regular Meeting of January 19, 2021 Page 4 It was moved by Trustee Wood and supported by Trustee Kirkland to send the Solar Winds memo to vendors for response. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No Attorney Castle updated the Board regarding Public Act 254 that amended the Michigan Open Meeting Act to allow public bodies to meet remotely under any circumstances through March 31, 2021. Karen Williams indicated that the Board received notification from the Finance Department regarding the FY 2020 Employees' Retirement System Contribution. In December $12,349,529 was transferred from the City of Lansing to the Employees' Retirement System, which was 100% actuarially calculated amount. Additionally, the City of Lansing transferred an additional net employee contribution of $727,044.96. It was moved by Trustee Wood and supported by Trustee Kraus to accept the FY 2020 Employees' Retirement System pension. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No It was moved by Trustee Dedic and supported by Trustee Bahr to re-elect the current leadership of Trustee Dennis Parker as chairperson and Trustee Antonia Kraus as vice chairperson. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez- Gazella, Schor, Wood — 9. No Karen Williams reviewed the subcommittee memberships and requested that members contact the Retirement Office or the chairperson for additions or changes to the committees. Karen Williams indicated that she will re -send out the Retirement Ordinance to subcommittee members. 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. Karen Williams reviewed the monthly investment report for the month ending December 31, 2020. It was moved by Trustee Bahr and supported by Trustee Dedic to adjourn the January Meeting of the Employees' Retirement System Board. Adopted by following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Parker, Sanchez- Gazella, — 6. No -0 The meeting adjourned at 10:34 a.m. Minutes approved on 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 Council Conference Room 10th Floor, City Hall Lansing, MI March 21, 2019 Thursday, 8:30 a.m. The Board met in regular session and was called to order at 8:34 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 21, 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 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 Via Zoom Meeting April 20, 2021 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:31 a.m. Present (attending remotely): Bahr (Lansing), Carrigan (Lansing), Ebright (Lansing), Kirkland (Lansing), Kraus (Delta Township), Parker (Lasing), Sanchez-Gazella (Lansing), Schor (Lansing) —8 Absent: Dedic, Wood, excused Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Attorney Aaron Castle, (legal counsel), Greg Stump, Boomershine Consulting Group. It was moved by Trustee Bahr and supported by Trustee Kirkland to approve the Official minutes of the Employees' Retirement System meeting of March 16, 2021 as amended. Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor, — 8. No There were no public comments for items on the agenda. There were no public comments. 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 483. Total deferred: 70. 6 death(s) Barbara Judge, (Planning —Teamster, retired 9/1/1998), died 2/22/2021, age 80, no beneficiary; Theophilis W. Harvey (HRCS — Teamster, retired 9/16/2008), died 3/14/2021, age 71, spouse to receive 50%; Geraldine Kelley, died 2/4/2021, age 94; spouse of nonbargaining retiree; James W. McCue, (Pubic Service — T214 Supervisory, retired 12/1/2012), died 3/6/2021, age 66, no beneficiary; Honorah Nash, (Teamster — retired 10/1/2008), died 3/27/2021, age 74, no beneficiary;Virginia Olson. died 3/19/2021, age102, spouse of District Court NonBargaining retiree. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of March 2021, amounted to $2,022,174.75. 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: 1. Eligible domestic relations orders certified: 0. Employees' Retirement System Regular Meeting of April 20, 2021 Page 2 It was moved by Trustee Bahr and supported by Trustee Carrigan to approve the following request for regular age and service retirements: Robert Francis (Assessor's Office — Teamster), 10 years, 6 months of service credits, age 58, effective 4/1/2021 (From Deferred) Mark Simon, (Parks — T243 Supervisory), 17 years, 6 months of serice credits, age 57, effective 4/3/2021 (eligible to retire with 28 years of eligibility, transferred from Defined Contribution plan) James M. Streeter (Public Service - UAW), 22 years, 11 months of service credits, age 60, effective 5/15/2021). Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor, — 8. No There were requests for duty disability. Karen Williams reported that applicant #2021-E0119 had been evaluated by the medical director. The medical report was received and submitted to the disability subcommittee for review. Trustee Sanchez-Gazella reported that the subcommittee did review the medical report and concurred with his opinion to recommend non -duty disability. It was moved by Trustee Carrigan and supported by Trustee Bahr to approve the applicant #2021-E0119 request for non -duty disability retirement. Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor, — 8. No -0 There were no requests for refund of accumulated contributions. Ms. Williams indicated that she checked the websites of MAPERS and NCPERS for updates. Ms. Williams reported that MAPERS does list an in-person Fall Conference in September. Ms. Williams will email trustees with virtual education opportunities. Employees' Retirement System Regular Meeting of April 20, 2021 Page 3 It was moved by Trustee Schor and supported by Trustee Kirkland to excuse Trustee Dedic and Trustee Wood from the April Employees' Retirement System Board. Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor, — 8. No -0 Trustee Carrigan required about the secretary's report. He inquired if the information should be ratified with a vote. Ms. Williams explained that the secretary's report is for the previous month. The new members are new hires, the 1 retired was listed as voted upon last month. The beneficiary pension have been approved when the member retired. Trustee Carrigan inquired if there was a committee to review requests for retirement. Ms. Williams indicated there was no committee, however, the legal counsel and special projects was reviewing the system policies. Karen Williams provided retirement board April invoices (Asset Consulting Group, Boomershine Consulting Group, Tegrit, Zoom, Asset Consulting Group) for approval in accordance with the new authorized signers policy. It was moved by Trustee Carrigan and supported by Trustee Kirkland to approve the April invoices. Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor, — 8. No -0 There were no public comments. Attorney Aaron Castle provided a legal counsel report that a Special Projects subcommittee meeting has been scheduled on May 4, 2021 to initiate the policy review project that was authorized by the Board. Attorney Castle will have an update at the May Board meeting. Mr. Greg Stump reported that due to update of the mortality tables, it is suggested to update the reduction factors for Option A, Joint and Survivor benefits and Option B, Modified Joint and Survivor benefits. The reductions factors should be reviewed after every experience study and assumption review. He reviewed the new reductions factors for the Board. Mr. Stump stated that he also wanted to review the equating factor rates and cash refund for a later meeting. Mr. Stump provided three options: 1) do nothing, 2) adopt the new factors and review when assumptions change, 3) adopt new factors and allow a grace period. Mr. Carrigan inquired why there was a need for a grace period. Mr. Stump indicated that members who have already received estimate or calculation from the retirement office would change. Trustee Kraus recommended that the Board update these reduction factors after every experience study. She suggested that pending applications would have a grace period to not affect those who have already received calculation/estimates from the retirement office. Those who request retirement after the date, would receive the new rates. Trustee Parker inquired if the new reduction facts were based on gender neutral mortality rates. Trustee Parker indicted that the collective bargaining agreements addreses using gender neutral rates. Mr. Stump stated that the rates are blended set of mortality rates based on the population. It was moved by Trustee Carrigan and supported by Trustee Kraus to refer the reduction rate option to Attorney Castle for review, to bring back to the next meeting. Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor, — 8. No -0 Karen Williams provided a results of the Solar Wind responses from the investment managers. Attorney Castle drafted a memo that was sent out to our investments regarding the Solar Winds breach. The breach had no impact on any of the investment managers. Karen Williams contacted Gabriel Roeder Smith regarding options available if the Board was to stop the Minute master service. Karen Williams indicated that Gabriel Roeder could not download their searchable software, but it could return the minutes that we provided to them for the update. Trustee Schor left the meeting. It was moved by Trustee Bahr and supported by Trustee Kirkland to approve the update for Minute Master. Adopted by following vote: Yes: Bahr, Carrigan, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella — 7. No -0 Karen Williams reported that she has received two duty disability income verifications, which are due April 30, 2021. Ms. Williams reported that members have inquired if the deadline would be extended because the federal and state deadline has been moved to May 17, 2021. Employees' Retirement System Regular Meeting of April 20, 2021 Page 4 Karen Williams reported that the Retirement Ordinance had been sent to Attorney Castle for review with the Special Projects subcommittee Karen Williams reported that the Police and Fire Retirement System had requested a service provider hire dates that can be used for review. Karen Williams reviewed the monthly investment report for the month ending March 31, 2021. It was moved by Trustee Carrigan and supported by Trustee Kirkland to adjourn the April meeting of the Employees' Retirement System Board. Adopted by following vote: Yes: Bahr, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella —6. No The meeting adjourned at 10:23 a.m. Minutes approved on 5/18/2021 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 June 15, 2021 Via Zoom Meeting Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:31 a.m. Present (attending remotely): Bahr (Lansing), Carrigan (Lansing), Dedic (Laingsburg), Ebright (Lansing), Kirkland (Lansing), Kraus (Lansing), Parker (Lansing), Schor (Lansing), Wood (Lansing) —9 Absent: Sanchez-Gazella - excused. Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Attorney Aaron Castle, (legal counsel), Nathan Burk, Thomas Jansich, Asset Consulting Group. It was moved by Trustee Wood and supported by Trustee Carrigan to approve the Official minutes of the Employees' Retirement System meeting of May 18, 2021. Adopted by following vote: Yes: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Schor, Wood — 9. No There were no public comments for items on the agenda. There were no public comments. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 482. Total deferred: 69. 3 death(s) Sheila Hurth, died 5/18/2021, age 94, spouse of Parks retiree; Angelita Mitchell, died 5/12/2021, age 83, spouse of nonbargaining retiree; Michael L. Gillison (Planning & Neighborhood Development — Teamster, retired 4/1/2000), died 5/24/2021, age 68, beneficiary to receive 100%. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of May 2021, amounted to $2,022,174.75. 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: 1. Eligible domestic relations orders certified: 0. Employees, Retirement System Regular Meeting of April 20, 2021 Page 2 It was moved by Trustee Bahr and supported by Trustee Carrigan to approve the following request for regular age and service retirements: Colleen Carrier (Parks — Teamster 243 CTP), 17 years, 6 months of service credits, age 67, effective 6/19/2021 Randal S. Hannan (mayor's Office), 12 years o service credits, age 58, effective 6/1/2021 (From Deferred) Katherine M. Prange (Finance — Teamsters), 8 years, 4 months of service cedits, age 61, effective 7/1/2021 (From Deferred) Adopted by following vote: Yes: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Schor, Wood — 9. No There were no requests for duty disability. Karen Williams reported that applicant #2021-E0615 has submitted a request for nonduty disability. The request was moved to the disability subcommittee. There were no requests for refund of accumulated contributions. Ms. Williams indicated that MAPERS' website indicated that the Fall Conference will be held in September. Ms. Williams will provide additional information as details become available. Karen Williams provided retirement board June invoices (Asset Consulting Group, William Blair, Northern Trust, Tegrit, Zoom) for approval in accordance with the new authorized signers policy. It was moved by Trustee Wood and supported by Trustee Kirkland to approve the Police and Fire Retirement System invoices. Adopted by following vote: Yes: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Schor, Wood — 9. No Attorney Castle reviewed the Professional Advisor and Service Provider Review policy. This policy was intended to replace the Board's existing Fee Disclosure/Vendor Review Policy, The Board's Special Projects Subcommittee considered and recommended the adoption of the policy. Employees' Retirement System Regular Meeting of June 15, 2021 Page 3 It was moved by Trustee Wood and supported by Trustee Kirkland to approve the Professional Advisor and Service Provider Review Policy. Adopted by following vote: Yes: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Schor, Wood — 9. No Attorney Aaron Castle provided a compliance report regarding the K2 Mauna Kea. Attorney Castle reviewed the offering documents for prospective investment of the Police and Fire Retirement System assets in the K2 Mauna Kea LLC. He reviewed that the Board's consideration of the investment is being made in consultation with the Board's investment Consultant to invest a portion of the System's long/short equity asset allocation. Attorney Castle reviewed the fund background and provided analysis and concluded that the fund does comply with Public Act 314 of 1965, as amended. Attorney Castle would require a side letter regarding compliance Karen Williams provided an update on the income verification. All disability retirees have reported and submitted their verification. There were no public comments. Karen Williams provided an Trustee Election update. The election was posted with a primary and general election dates in June. There have been no nominating petitions submitted for June 21St deadline so far. Mr. Nathan Burk presented a proposal to for a timeline of K2 Mauna Kea LLC and reviewed the implementation process. He reported that he also provided two references for the Board's review. Mr. Tom Janisch discussed the potential customization of the K2 Mauna Kea LLC. The Board would be required to approve each manager selected for the portfolio. Mr. Janisch discussed the K2 Mauna Kea LLC would result in lower fees, and the Board could adjust the portfolio regarding exposure and risk. Mr. Nathan Burk stated the agreement with K2 Mauna Kea LLC would be separate and distinct from the investment consultant agreement that Asset Consulting Group has with the Employees' Retirement System Board. Mr. Burk indicated that the Board would generally make 1-2 changes per year after the initial portfolio is constructed. Trustee Wood inquired if the Boards decision was made in July, would there be enough time to implement the K2 Mauna Kea LLC strategy. Mr. Burk indicated that if the Board did not implement the strategy this quarter, it could wait until the next quarter. Employees' Retirement System Regular Meeting of June 15, 2021 Page 4 Trustee Carrigan inquired if Attorney Castle could contact the references regarding the the K2 Mauna Kea LLC. The Board agreed to further discuss the K2 Mauna Kea LLC at the meeting next month. Mr. Nathan Burk discussed the amendments to the Investment Policy Statement that addressed the new portfolio asset allocation approved at the May Joint meeting. It was moved by Trustee Wood and supported by Trustee Caarigan to accept the amended Police and Fire Retirement System Investment Policy Statement. Adopted by following vote: Yes: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Schor, Wood — 9. No Mr. Nathan Burk reviewed the monthly investment report for the month ending May 31, 2021. It was moved by Trustee Bahr and supported by Trustee Kirkland to adjourn the June meeting of the Employees' Retirement System Board. Adopted by following vote: unanimous The meeting adjourned at 10:47 a.m. Minutes approved on _7/20/2021 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 July 20, 2021 Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:31 a.m. Present:: Carrigan, Dedic, Ebright, Kirkland, Parker, Sanchez-Gazella, Schor, Wood -8 Absent: Bahr, Kraus - excused. Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Attorney Aaron Castle, (legal counsel). It was moved by Trustee Wood and supported by Trustee Carrigan to approve the Official minutes of the Employees' Retirement System meeting of June 15, 2021. Adopted by following vote: Yes: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Schor, Wood - 9. No Trustee Wood had concerns that public participation information was on the agenda. Trustee Wood requested clarification whether the Board will have hybrid meetings and allow public participation by Zoom. Trustee Parker stated that the public who needed special accommodation could make arrangements with the secretary. Attorney Castle commented that there is no legal requirement to have the hybrid participation when the meeting is in person. Attorney Castle recommended that the retirement board be consistent with counsel. There were no public comments. 1 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 482. Total deferred: 69. 3 death(s) Sheila Hurth, died 5/18/2021, age 94, spouse of Parks retiree; Angelita Mitchell, died 5/12/2021, age 83, spouse of nonbargaining retiree; Michael L. Gillison (Planning & Neighborhood Development — Teamster, retired 4/1/2000), died 5/24/2021, age 68, beneficiary to receive 100%. Refunds made since the last regular meeting mounted to $0.00. Retirement allowances paid for the month of May 2021, amounted to $2,022,174.75. 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: 1. Eligible domestic relations orders certified: 0. Employees' Retirement System Regular Meeting of July 20, 2021 Page 2 There were no requests for regular age and service retirements. Karen Williams reported that the retirement office sent a letter of request to applicant #2021-E0615 for the medical release and medical reports. Karen Williams reported the following request for refund of accumulated contributions: Leslie A. McCarrick, not vested, Mayoral Staff, $12,313.93 William Tervo, not vested, Teamster 243, $6,529.44 It was moved by Trustee Wood and supported by Trustee Dedic to approve the request for refund of accumulated contributions for Leslie McCarrick of $12,313.93. Adopted by the following vote; 8 - 0 It was moved by Trustee Wood and supported by Trustee Kirkland to approve the request for refund of accumulated contributions for Mr. William Tervo of $6,529.44. Adopted by the following vote; 8 -0. Trustee Scott Dedic provided his oral report for his attendance at the ABS Conference. Trustee Dedic discussed the ABS Crossover product that merges venture capital and private equity. He also reviewed the Roundtable with the investment managers from counties that included Russia, Taiwan, and Brazil. The managers are based in those countries and discussed how covid played a role in the investments. Trustee Kirkland gave her oral report for her attendance at the ABS Conference. Trustee Kirkland stated that the conference was good training. She also added to the discussion regarding the ABS Crossover product. Trustee Parker also attended the ABS Conference and provided an oral report. Trustee Parker spoke to the unique company structure with most managers based in the country they invest in. These managers are able to visit the plants and companies instead of just reviewing ledgers. Trustee Parker thought the ABS Crossover product was intriguing. Ms. Williams indicated that MAPERS' website indicated that the Fall Conference will be held in September. Ms. Williams provided information for the upcoming IFEBP and NCPERS Conferences. Employees' Retirement System Regular Meeting of July 20, 2021 Page 3 It was moved by Trustee Dedic and supported by Trustee Carrigan to allow any members to attend the following conference: IFEBP Employee Benefits Conference, Denver, Colorado — October 17-Octoer 20 MAPERS Conference. Doubletree Hotel, Bay City, MI — September 18-21 NCPERS Fall Conference, Scottsdale, Arizona — September 26-28 Adopted by the following vote: 8- 0 Karen Williams reviewed the Expense Reports and the 2021 City Travel and Business expense rates. Trustee Parker indicated that he was contacted by Trustees Bahr and Kraus who requested to be excused from the meeting. It was moved by Trustee Dedic and supported by Trustee Carrigan to excuse Trustee Bahr and Trustee Kraus from the July Employees' Retirement System Board. Adopted by the following vote; 8 - 0 Karen Williams provided retirement board July invoices (Gabirel Roeder Smith, Vanoverbeke, Michaud & Timmony, PC, Zoom) for approval in accordance with the new authorized signers policy. It was moved by Trustee Carrigan and supported by Trustee Kirkland to approve the Employees' Retirement System invoices. Adopted by following vote: 8 — 0. Attorney Aaron Castle updated the Board on the K2 Mauna Kea LLC investment. Attorney Castle reached out the references provided by Asset Consulting Group. He spoke with Mindy Harris, Board of Public Utilities for Kansas City. Ms. Harris stated that K2 Mauna Kea has been cost effect and the investment performance has been good, outperforming the bench mark. The administration of the fund required a side letter. The administration of the fund has been straight forward. Ms. Harris indicated the ACG provides the recommendation and their Board approves the recommendations. Attorney Castle stated that through negotiation, he would request a side letter. Trustee Wood inquired regarding the Board's vendor and cybersecurity. Trustee Wood also requested that Attorney Castle review Tegrit's contract. Trustee Carrigan indicated that previous Boards in which served has cybersecurity insurance. He inquired if the retirement board had cybersecurity insurance. He requested that the issue be listed as pending. Employees' Retirement System Regular Meeting of July 20, 2021 Page 4 Trustee Schor requested that Attorney Castle verify if the retirement board is covered under the City's liability insurance. Trustee Parker requested that the discussion for Cybersecurity and Fiduciary liability insurance be added to pending on the Employees' Retirement System Board. Trustee Wood stated that under the resolution approved each year by City Council for the budget, the Board and members are covered. The City Attorney has informed council that the members are covered in their decision were made in good faith. There were no public comments. Karen Williams provided a Trustee Election memo posting update. The deadline for turning in nomination petition for the term of office as Trustee Employees' Retirement System Board was June 21, 2021. One petition was received by Dennis R. Parker. In accordance with Board rules, there was only one certified petition and there was no reason to conduct a primary or general election. It was moved by Trustee Wood and supported by Trustee Ebright to accept the nomination petition of Dennis R. Parker and declare him the winner of the office of Trustee for the term ending June 30, 2025. Adopted by the following vote; 8 -0. Karen Williams reported that Attorney Castle sent out the Political Contributions Disclosure Form. Asset Consulting Group provided its form to the Police and Fire Retirement System Board. Ms. Williams indicated that she would provide the completed forms as they were submitted. The K2 Mauna Kea, LLC investment discussed was deferred until the Joint Retirement Board meeting in August. Karen Williams reviewed the monthly investment report for the month ending June 30, 2021. It was moved by Trustee Carrigan and supported by Trustee Kirkland to adjourn the July meeting of the Employees' Retirement System Board. Adopted by following vote: unanimous The meeting adjourned at 10:17 a.m. Minutes approved on _8/17/2021 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 September 14, 2021 10th Floor City Council Conference Room Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:39 a.m. Present: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella, Schor —9 Absent: Wood - excused. Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel). It was moved by Trustee Kraus and supported by Trustee Bahr to approve the Joint Official minutes of the Employees' Retirement System and the Police and Fire Retirement System meeting of August 17, 2021. Adopted by following vote: 9 -0. There were no public comments. 6 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 481. Total deferred: 74. 2 death(s) Steve W. Austin. (Public Service — UAW, retired 9/7/2012), died 8/11/2021, age 70, beneficiary to receive 100%; Sue Wager (Human Resources — NonBargaining, retied 9/16/1995, died 7/24/2021, age 72, no beneficiary. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of August 2021, amounted to $2,023,781.40. Total retirement checks printed for the ERS System: 941. 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. There were no requests for regular age and service retirements. Karen Williams reported that the retirement office was waiting for medical reports for applicant #2021-E0615 for the medical release and medical reports. There were no requests for refund of accumulated contribution. Employees' Retirement System Regular Meeting of September 14, 2021 Page 2 Ms. Williams provided registration and conference updates for the following: IFEBP Employee Benefits Conference, Denver, Colorado — October 17-Octoer 20 MAPERS Conference. Doubletree Hotel, Bay City, MI — September 18-21 NCPERS Fall Conference, Scottsdale, Arizona — September 26-28 Karen Williams reported that Trustee Wood requested to be excused from the September ERS meeting. It was moved by Trustee Dedic and supported by Trustee Kirkland to excuse Trustee Wood from the September Employees' Retirement System Board. Adopted by the following vote: 9 - 0 Karen Williams provided retirement board September invoices (Income Research & Management, Northern Trust, Zoom) for approval in accordance with the new authorized signer's policy. It was moved by Trustee Bahr and supported by Trustee Kirkland to approve the Employees' Retirement System invoices. Adopted by following vote: 9 — 0. Attorney Castle reviewed a draft Request for Proposals (RFP) for a death audit provider. Attorney Castle indicated the Board's provide, PBI, will phase out the death audit services currently offered to the Board at the end of the year. Attorney Castle also included a list of potential providers for the proposals. Attorney Castle reported the Police and Fire Retirement System Board approved the proposal. Trustee Linda Sanchez-Gazella inquired if the City's purchasing office would be issuing the Request for Proposal. Attorney Castle responded the retirement board has the option to issue its own RFP or it could be issued the City. Trustee Sanchez-Gazella recommended that the Request for Proposal be issued by the City's purchasing office, for tracking purposes and consistency. It was moved by Trustee Kraus and supported Trustee Sanchez-Gazella to approve the Request for Proposal for issuance. Adopted by the following vote: 7 — 0. Employees' Retirement System Regular Meeting of September 14, 2021 Page 3 Attorney Castle will finalize the Request for proposal and provide it to the Retirement Office to coordinate with the City's purchasing office to issue the document. Attorney Castle provided and reviewed a memo regarding the fiduciary and cyber liability coverage of the Employees Retirement System Board. The memo analyzed the coverage for the Boards of Trustees of the City of Lansing Retirement Systems and the individual Trustees serving on the respective Boards. Attorney Castle reviewed the City's General Liability insurance policy, Indemnification and defense of claims and Cyber liability. Attorney Castle reported that he reviewed the Tegrit Group contract regarding cyber security and liability. Attorney Castle concluded that based on the foregoing the City's policy appears to provide the Plans, the Boards, and the individual Trustees with partial coverage in the event of claims or losses pertaining to the management and administration of the Retirement System. The Tegrit Agreement also offers a limited level of protection in the event of a cyber security incident with respect to the pension administration software hosted by Tegrit. Attorney Castle opined that the Boards may want to pursue retaining its own insurance broker to work to procure separate policies of fiduciary liability insurance, and possibly, cyber liability coverage. Attorney Castle indicated that he was most familiar with Union Services Agency that specialize in insuring retirement boards. He stated that are limited insurance brokers who specialize in the cyber security and fiduciary liability insurance Attorney Castle indicated that the Police and Fire Retirement System requested that Union Services Agency come to the next Joint meeting. Trustee Dedic inquired if the coverage would be supplemental to the current City policy for fiduciary liability. He expressed concern regarding double coverage. Trustee Schor questioned if the members are covered under their individual department/agencies through the respective City policies. Attorney Abood reviewed Attorney Castle's memo and indicated that when the Board had the City Attorney as its legal counsel, the Board had another level of protection when it was receiving advice from the City Attorney under the City's liability coverage for the opinions provided. Attorney Abood had no comment upon the Cyber Liability coverage. Attorney Abood did not disagree a fiduciary liability policy may be appropriate as the retirement board does not have the same level of protection with outside legal counsel under the City policy. Employees' Retirement System Regular Meeting of September 14, 2021 Page 4 It was moved by Trustee Dedic and supported by Trustee Bahr to have Union Services Agency come to the November Joint meeting to answer questions for Trustees. Trustee Carrigan requested to abstain from the discussion and voting because he had previously worked with Union Services Agency and had a personal interest Trustee Sanchez-Gazella suggested that someone from the City's IT Department be included in the meeting. Adopted by the following vote: 9 -0. Trustee Linda Sanchez-Gazella presented a proposal to the Employees Retirement System Board to hire a part-time contract person to assist the retirement analyst for upcoming projects with a cost not to exceed $4,000 shared between both boards. Trustee Sanchez-Gazella expressed concern regarding the workload for the retirement analyst position and to establish succession plans for the position. Trustee Sanchez- Gazella indicated that the Board had paid for a support person in the past. Karen Williams explained that the previous administrative support person had left the City after transitioning to full time employment in another department. The support person was initially paid by the Board to assist with data entry with Tegrit. Trustee Kraus support the proposal and indicated the retirement office staff both retirement boards, deferred compensation, and defined contribution. Trustee Kraus expressed concern that the process for a support person is not delayed. Trustee Kraus believed that the support person discussion should be separate from the succession plan. Trustee Sanchez-Gazella noted that the support person would be for a six-month time period that would be re-evaluated. Trustee Sanchez-Gazella had not any discussion with Finance regarding succession plans. Trustee Carrigan suggested the possibility hiring a contract person, such as a retired staff person from one of the third -party administrator. It was moved by Trustee Kirkland and supported by Trustee Dedic to approve the proposal for a part-time support person and assign the chair to work with the Police and Fire Retirement System Board on implementation. Adopted by the following vote: 9 -0. Karen Williams reviewed the monthly investment report for the month ending August 31, 2021. It was moved by Trustee Bahr and supported by Trustee Dedic to adjourn the August meeting of the Employees' Retirement System Board. Adopted by following vote: unanimous The meeting adjourned at 10:31 a.m. Minutes approved on _10/12/2021 Karen E. Williams, Recording 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 October 12, 2021 10th Floor City Council Conference Room Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:39 a.m. Present: Bahr, Carrigan, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella 1015a), Schor —9 Absent: Wood - excused. Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel). It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Official minutes of the Employees' Retirement System meeting of September 14, 2021, as amended. Adopted by following vote: 8 -0. There were no public comments. 5 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 481. Total deferred: 75. 2 death(s) Nehemiah Powell. (Public Service — UAW, retired 12/13/1997), died 8/17/2021, age 78, no beneficiary; Martha V. Maynard, died 8/29/2021, age 94, spouse of nonbargaining member. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of September 2021, amounted to $2,018,284.07. Total retirement checks printed for the ERS System: 937. 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 Bahr and supported by Trustee Ebright to approve the following request for regular age and service retirement: Ricardo Gomez (Public Service — UAW), 24 years, 1 month of service credits, age 59, effective December 4, 2021. Adopted by the following vote: 8 -0. There were no requests for duty disability. Employees' Retirement System Regular Meeting of October 12, 2021 Page 2 Karen Williams reported that the medical evaluation had been scheduled for applicant #2021-E0615. Trustee Carrigan reported that he attended the MAPERS as the ERISA specialist, marketing liaison for USAUnion Services agency. He reported on the session that discussed Cyber Security and felt the information was very good. He also discussed a workshop that discussed the future of the stock market. Trustee Parker attended the MAPERS Conference and provided an oral report regarding Cyber Security workshop. He discussed insurance and felt that it was expensive and would need to be a Joint venture between the city and Board. He also provided an overview of industry structure and legislative workshop. Trustee Kraus provided an oral report of the MAPERS and NCPERS conferences. Trustee Kraus a lot of the information was similar at both conferences. Trustee Kraus attended the refresher at the Sunday session. Trustee Kraus reviewed alternative in core plus investments, and Cyber Security and liability. She discussed how affordable housing fit into the real estate portfolio and investment returns. People are leaving high rent area and moving to smaller markets and driving tup the rents. Trustee Kraus detailed breach coaches, and data needs within as a part of the Cyber Security discussion. Trustee Ebright attended eight classes at the MAPERS Conference. Trustee Ebright was a first-time attendee and learned a lot. He attended the new trustee orientation. Ms. Williams reported that there was a mask mandate for those members who would be attending the IFEBP Conference. Ms. Williams reported that second annual Michigan Institutional Forum that will be hosted in East Lansing on November 30, 2021. Asset Consulting Group inquired if any members would be attending. Trustee Carrigan reported that he planned to attend the IFEBP Conference. He noted that he has attended IFEBP for about thirty years and chairman of their education and trustees committee. Trustee Carrigan offered to discuss the conference with members who had interest. Karen Williams reported that Trustee Wood requested to be excused from the October ERS meeting. Employees' Retirement System Regular Meeting of October 12, 2021 Page 3 It was moved by Trustee Dedic and supported by Trustee Carrigan to excuse Trustee Wood from the October Employees' Retirement System Board. Adopted by the following vote: 8 - 0 Karen Williams provided retirement board October invoices (Asset Consulting Group, Northern Trust, Zoom) for approval in accordance with the new authorized signer's policy. It was moved by Trustee Kirkland and supported by Trustee Kraus to approve the Employees' Retirement System invoices. Adopted by following vote: 8 — 0. Attorney Castle reported that the Request for Proposals for Death Audit Services was issued through the City's Purchasing Department on September 17, 2021. Responses would be due by October 15, 2021. Attorney Castle reviewed the Disability Certification Forms that would be completed by the medical director regarding his evaluation. It was moved by Trustee Carrigan and supported Trustee Kraus to approve the Disability Certification forms. Adopted by the following vote: 8 — 0. Attorney Castle provided and discussed the Board Education and Travel Policy. The policy expands the existing Conference and Travel policy. It discusses the Board legal and fiduciary policies and education rules and regulation regarding reimbursements. The policy includes the federal regional per diem rates with receipt, if there are no receipts, the member would follow the city policy. The attendees can designate one person to provide an oral report. Actuarial Funding Policy. The policy was intended to address the Board's legal and fiduciary responsibility with respect to the actuarial valuation of the Retirement System and other reporting obligations under the Retirement Ordinance and applicable state law. Trustee Carrigan recommended to add the Michigan Institutional Forum to the list of approved training and education. It was moved by Trustee Carrigan and supported by Trustee Kirkland to approve the Board Education and Travel Policy. Adopted by the following vote: 8 — 0. Employees' Retirement System Regular Meeting of October 12, 2021 Page 4 Attorney Castle provided and discussed the Actuarial Funding Policy. The policy was intended to address the Board's legal and fiduciary responsibility with respect to the actuarial valuation of the Retirement System and other reporting obligations under the Retirement Ordinance and applicable state law. He discussed public Act 202 that requires an actuarial audit be done every eight years, where there is either a peer review or replacement of the actuary. It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Actuarial Funding Policy. Adopted by the following vote: 9 — 0. Attorney Castle provided and discussed a draft service retirement policy and corresponding forms. The Policy was intended to memorialize the current retirement process. It was moved by Trustee Carrigan and supported by Trustee Kirkland to approve the Service Retirement Policy. Adopted by the following vote: 9 — 0. Karen Williams provided Asset Consulting Group Quarterly Cash Flow Withdrawal recommendations for the Employees' Retirement System: $1 million from Income, Research & Management, $3 million from Western, and $2 million from Black Rock. It was moved by Trustee Kraus and supported by Trustee Dedic to approve the quarterly cash flow withdrawal of $1 million from Income, Research & Management, $3 million from Western and $2 million from Black Rock as recommended by Asset Consulting Group. Adopted by the following vote: 9— 0. Karen Williams reviewed the 2022 meeting scheduled and the conference schedules. The Employees' Retirement System Board reviewed the following dates: January 18, February 15, March 15, April 19, May 17, June 21, July 19, August 16, September 13, October 18, November 8, and December 20. It was moved by Trustee Kraus and supported by Trustee Carrigan to approve the 2022 meeting schedule. Adopted by the following vote: 9 -0. Greg Stump reviewed the Employees' Retirement System Actuarial Valuation Report. Mr. Stump discussed the valuation summary, changes from the prior year and the funding outlook. Mr. Stump reviewed the funding progress, contributions to the system and actuarial assumptions. He discussed the investment/contribution experience, contribution outlook and populations changes. It was moved by Trustee Carrigan and supported by Trustee Kraus to accept the Employees' Retirement System Actuarial Valuation report as of December 31, 2020. Adopted by the following vote: unanimous Karen Williams reviewed the monthly investment report for the month ending September 30, 2021. It was moved by Trustee Carrigan and supported by Trustee Bahr to adjourn the October meeting of the Employees' Retirement System Board. Adopted by following vote: unanimous The meeting adjourned at 10:41 a.m. Minutes approved on _11/9/2021 Karen E. Williams, Recording 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 December 14, 2021 10th Floor City Council Conference Room Tuesday, 9:30 a.m. The Board met in regular session and was called to order at 9:39 a.m. Present: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Wood —7 Absent: Carrigan — excused, Sanchez-Gazella, Schor Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle, (legal counsel). It was moved by Trustee Wood and supported by Trustee Dedic to approve the Official minutes of the Joint Employees' Retirement System and the Police and Fire Retirement System meeting of November 9, 2021, as amended. Adopted by following vote: 7 -0. There were no public comments. 8 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total active membership: 483. Total deferred: 75. 1 death(s) William H. Martin, Jr. (Public Service — UAW, retired 7/1/2010), died 10/28/2021, age 66, beneficiary to receive 100%; Refunds made since the last regular meeting amounted to $6,291.75. Retirement allowances paid for the month of November 2021, amounted to $2,019,312.93. Total retirement checks printed for the ERS System: 937. Total Retirement checks printed for both systems: 1702. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Bahr to approve the following request for regular age and service retirement: Ricardo Gomez (Public Service — UAW), 24 years, 1 month of service credits, age 59, effective December 4, 2021. Adopted by the following vote: 7 -0. Employees' Retirement System Regular Meeting of December 14, 2021 Page 2 Karen Williams reported that Applicant #2021 -E1108 was sent a letter requesting medical release and documents to be forwarded to the medical director. Karen Williams reported that Applicant #2021-E1214 has requested to be evaluated for non -duty disability. The letter of request was forwarded to the disability subcommittee for review. Trustee Bahr stated that the disability subcommittee had reviewed the applicant's request and recommended that the applicant be sent to the medical director for evaluation. It was moved by Trustee Bahr and supported by Trustee Kraus to refer Applicant #2021-E1214 to the medical director for nonduty disability evaluation. Adopted by the following vote: 7 -0. There were no requests for refund of accumulated contribution. Trustee Parker attended the 2nd Annual Michigan Institutional Forum Report in East Lansing. He provided an oral report and discussed real estate and regional malls were coming back. There was discussion on Crypto currency. Karen Williams reported that Trustee Carrigan requested to be excused from the December ERS meeting. It was moved by Trustee Bahr and supported by Trustee Ebright to excuse Trustee Carrigan from the December Employees' Retirement System Board. Adopted by the following vote: 8 - 0 Karen Williams provided retirement board Deember invoices (Asset Consulting Group, Tegrit, Zoom) for approval in accordance with the new authorized signer's policy. It was moved by Trustee Wood and supported by Trustee Bahr to approve the Employees' Retirement System invoices. Adopted by following vote: 7 — 0. There was no legal counsel report for December. Employees' Retirement System Regular Meeting of December 14, 2021 Page 3 Karen Williams distributed the Tegrit fee increase proposal and project change options for the Board consideration. Tegrit proposed two cost options to accommodate the City of Lansing bargaining unit changes in the pension software. Tegrit provided a change request that outlined the high-level requirement and offered a fixed fee cost. Tegrit also included fee increase to the Board's contact that could incorporate the bargaining unit changes. The contract fee change would cover through 2023. Annual cost of hosting and maintenance would increase, with the opportunity to purchase additional hours. Trustee Wood requested not to exceed language be added to the contract proposal. She requested that legal counsel review the proposal and determine appropriate questions to ask. It was moved by Trustee Wood and supported by Trustee Bahr to have a Joint meeting in January with Tegrit to review the contract proposals. Adopted by the following vote: 7 — 0. Mr. Jeffrey D. Scharnowske, Finance department, submitted a memo regarding FY2021 Employees' Retirement System Pension Employee Contribution. The memo indicated that on December 10, 2021, $442,276.46 was transferred by the City of Lansing to the Employees' Retirement System. The amount represented a FY2021 correction of underpayments to the Employees' Retirement System Plan. Trustee Dedic inquired if these were employee deductions that were not submitted to Employees' Retirement System. Trustee Wood indicated that the Police and Fire System had a much small amount. Trustee Wood recommended that Finance come to the meeting to provide an explanation. Trustee Kraus recommended that Finance Department provided an explanation, and that ACG or Boomershine determine interest that was missed. It was moved by Trustee Wood and supported by Trustee Kraus to have the Finance Department representative attend the next meeting to provide an explanation regarding the FY 2021 underpayment. Adopted by the following vote: 7 -0. It was moved by Trustee Wood and supported by Trustee Bahr to accept the FY 2021 Employees' Retirement System Employee Contribution as of June 30, 2021. Adopted by the following vote: 7 -0. Employees' Retirement System Regular Meeting of December 14, 2021 Page 4 Karen Williams reported that Trustee Carrigan requested his letter regarding his relationship with Union Services Agency be submitted to the Employees' Retirement System: To: Board of Trustees, City of Lansing, Karen Williams, Aaron Castle From: ERS Trustee Bart Carrigan Re: Union Services Agency & Bart Carrigan — Relationship Date: December 7, 2021 As I mentioned at the October and November Trustee meeting, I am employed as a consultant by Sally Corbin of Union Services Agency. While not a full-time employee, I receive a monthly fee, and I am eligible for additional compensation when the Agency acquires new business that I assist with. At the prior meetings, I declared that I would abstain from the Board's discussions about hiring Union Services Agency because of a possible conflict of interest. In addition to abstaining from discussions about hiring USA, I have made arrangements with the Agency owner, Sally Corbin, to eliminate my possible compensation if the Agency is hired by then Pension plan. This is being done so that my role as Trustee is in accordance with the City of Lansing's ethics ordinance, the Lansing Police and Fire Retirement System, and the Lansing Employees Retirement System's code of conduct. As a Fiduciary to the retirement system, I realize that I must prudently administer the system for the sole and exclusive benefit of its members, retirees, and beneficiaries. Before the next meeting in January, I plan to submit a memorandum of agreement signed by Sally Corbin and myself, pledging that I will receive no compensation that could violate our Funds guidelines and my fiduciary responsibility. I will continue to abstain from discussing this matter and follow the plan's guidelines to the best of my ability. I appreciate your consideration. Sincerely, Bart Carrigan Employees' Retirement System Regular Meeting of December 14, 2021 Page 5 Karen Williams also distributed Trustee Carrigan agreement with Sally Corbin, Union Services Agency. Trustee Wood inquired when Trustee Carrigan would file his letter with the Ethic Boards. Karen Williams reported that she would contract Trustee Carrigan and relay the information. Trustee Wood inquired and �xpressedl concern that Trustee Carrigan could receive commented [wKI]: -- - . --- - .. - future compensation when other companies or entities that choose Union Service Agency based upon City of Lansing retirement board becoming a client. Trustee Kraus stated that there would be no way to determine if another company chose Union Service Agency based upon a contract with the City of Lansing retirement board. Trustee Wood indicated that the City of Lansing retirement boards were looking into obtaining additional fiduciary liability insurance based upon possible gaps in the City's insurance for Board members. Trustee Wood reported that she requested a written opinion from the City Attorney's office regarding the fiduciary lability coverage provided by the City. Karen Williams reviewed the monthly investment report for the month ending November 30, 2021. It was moved by Trustee Bahr and supported by Trustee Kraus to adjourn the December meeting of the Employees' Retirement System Board. Adopted by following vote: unanimous The meeting adjourned at 11:04 a.m. Minutes approved on _2/15/2022 Desiree Kirkland, Secretary Employees' Retirement System Dennis R. Parker, Chairperson Employees' Retirement System