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HomeMy WebLinkAboutEmployees' Retirement System Mintues 1990 FINAL OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for January January 18 , 1990 8th Floor, Conference Room Tuesday 8 : 35 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8 : 35 A.M. Present: 'Trustee Benavides , Goodin, McKane, Moye, Pontz & White - 6 Absent: Trustee Jackson and Perdue - 2 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Melvin McWilliams, Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. it was moved by Trustee Pontz , supported by Trustee Moye that the minutes of the regular meeting for December 12 , 1989, be approved. Adopted by -the following vote : Unanimously. The Secretary reported 9 new members , 0 reinstatements, 1 refund and 1 retired. Total Membership: 967 . Refunds made since the last regular meeting $3 ,561. 06 . Retirement allowances paid for the month of December, 1989 amounted to $240 ,309 . 59. Trustee McKane arrived at 8 : 40 A.M. It was moved by Trustee Benavides, supported by Trustee Pontz that the application for Regular Age and Service for: Arthur E. Buck, Parks Dept. , 14 years 5 months service credit, age 62, effective February 1, 1990. Ruth C. Ward, City Clerk' s Office, 21 years 0 months service credit, age 59 , effective March 17, 1990 . be approved, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Goodin, McKane, Moye, Pontz and White - 6 Nays: None It was moved by Trustee Benavides , supported by Trustee Pontz that the Board receive and place on file the request for Deferred Retirement for Kimberly Schneider, Finance/Accounting Dept. , 8 1 Employees Retirement System January 18 , 1990 years 6 months service credit, termination effective February 2, 1990 . Adopted by the following vote: Unanimously. Mr. Duarte informed the Board that he had been approached by Capital Bidco. Bidcos are newly created investment vehicles approved by state legislation for the purpose of helping to meet financing and other needs of small businesses. Mr. Duarte stated this was a direct investment, similar to a venture capital fund. After discussion, the Board asked the Secretary to write a letter to Capital Bidco advising that the Board is not interested at this time in these types of investments. Mr . Duarte gave an update on the prefunding of health care stating Melvin McWilliams updated the first draft and did not change concepts. Also Mr. Duarte had a copy of the second draft referred to Council and had a public meeting date set for January 8 , 1990 . In addition, the Secretary stated that he will be meeting next week with labor relations and that both copies of the ordinance have been sent to all labor union leaders for the City of Lansing. Trustee Moye asked if the Board could receive a copy of the second draft of the ordinance. Trustee McKane left at 9 : 12 A.M. Trustee White asked the Secretary to address the rules adopted by the Police and Fire Retirement System re: prefunding of health care. Mr. Duarte gave an overview of the five rules relative to communications and potential negotiations . He advised the Board that it was not necessary for the adoption of the five rules as these rules would be applied the same to both systems. Mr. Duarte distributed to the Board a copy of the legal opinion on the Use of "Basket Clause" for Real Estate Investments. Melvin McWilliams addressed the Board by stating, the "basket clause" cannot be utilized by the City`s retirement systems to invest in real property or interests in real property since such investments are specifically authorized investments only of retirement systems having at least $250 , 000 ,000 in assets. In this regard, this office concurs with the opinion of the Attorney General wherein the Attorney General concludes that a retirement system having assets of less than $250, 000, 000 cannot invest in real estate limited partnerships. However, even though the "basket clause" cannot be used for direct real estate investments , it is the opinion of this office that investments in certain small businesses and small business investments in real estate limited partnerships . However, to pursue such investments , the City' s retirement systems would 2 Employees Retirement System January 18 , 1990 have to join with other public retirement systems, ERISA qualified retirement systems, financial institutions, corporations, or governmental agencies or instrumentalities having combined assets of $250 ,000, 000, and would be limited to investing two percent ( 2%) of their assets in such business . Mr. Duarte stated that Hal Rossen of Prudential Bache called and thought we were going to continue our joint meeting on asset allocation and suggested holding a joint retirement board meeting on February 6 or February 7 . He would bring back ideas on real estate, mortgage or Reits and how they might fit in. The Secretary stated he was unable to hold the meeting on February 7 , and would the Board consider February 6 , at 8 : 30 A.M. The Board agreed. Mr. Duarte advised that Mr. Kevin Lynch, real estate consultant, would not be hired as our consultant until after the presentation by Prudential Bache on asset allocation. Other Business. Mr. Duarte stated that he and Mr. Rubley were studying the tools that Prudential Bache were offering on investments. Trustee Moye asked what the employees contributions interest rate is and Mr. Duarte advised that it was 3% on the prior year period. It was moved by Trustee Benavides , supported by Trustee Moye that the Board excuse Trustee Jackson and Perdue from the Board meeting. Adopted by the following vote : Unanimously. Doug Rubley distributed a copy of the portfolio summary from the National Bank of Detroit for funds evaluation as of December 31, 1989, and presented an overview of the transactions by the outside money managers . Mr. Duarte advised that Mr. Rubley had added two new sheets to the portfolio summary for the purpose of communicating better with the Boards, unions , etc. re: 1) Asset Summary sheet and 2) In-House Cash and Investment sheet. The Meeting Adjourned at 10 : 30 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 3 JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS 8th Floor Conference Room February 6 , 1990 City Hall Tuesday, 8: 38 A.M. Lansing, Michigan The Joint Board of Trustees meeting was called to order by Chairperson, Jack Cushman, at 8 : 38 A.M. Present: Board Members: Benavides, Barkyoumb, Cushman, Goodin, Jackson, Luzynski, Moye, Pontz & White -• 9 Absent: Board Members : Hunnell , McKane, McKenzie & Perdue - 4 Present: Others : Stephen W. Duarte, Secretary; Doug Rubley, & Lesley Seldenright, Finance; Ed Piloske, Internal Audit; Victor Rosasco & Hal Rossen, Prudential Bache Mr. Vic Rosasco reviewed the asset allocation report presented to the boards on December 12 , 1989. Based upon the opinion of the City Attorney on the use of the "basket clause" for direct real estate investing additional information was presented at this meeting on real estate products allowable under P.A. 55, those being real estate investment trusts (REITS) and debt (mortgages ) . Prudential Bache felt that there was no need to hire separate managers for REITS or mortgages as our existing managers were qualified to manage these types of products . Discussion was held regarding the risk and rewards including diversification of REITS and mortgages. Discussion was held regarding the timing of the asset allocation study on real estate and why it occurred a year after Prudential- Bache introduced and recommended real estate (Joint Board meeting of July 26 , 1988) . Hai Rossen indicated that he had assumed we would be able to use the "basket clause" for direct real estate investing and that it would provide diversification within our portfolio. Mr. Duarte informed the Boards that it was his recommendation to have an asset allocation study because real estate was being discussed by the Boards prior to him becoming secretary to the Boards . Joint Board Meeting February 6 , 1990 Hal Rossen distributed information on investing in international stocks. Chairperson Cushman expressed concern as to U.S. monies being invested in foreign countries . Mr . Rossen stated that investing in foreign countries was not the same as providing monies directly. It was suggested that the Board get a City Attorney' s opinion before having Prudential-Bache due an asset allocation on foreign investing. Discussion followed, no motions regarding international investing were voted upon. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that based on the two presentations on asset allocation and the restrictions on the legal types of real estate products that we may utilize, that a recommendation to exclude current real estate options as an investment vehicle be taken back to the respective .retirement boards. Adopted by the following vote: Unanimously. The Joint Boards Adjourned at 10 : 02 A.M. Stephen W. Duarte, Secretary Retirement- Boards-Joint Meeting OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for February February 22 , 1990 loth Floor, Conference Room Thursday 8 : 50 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8 : 50 A.M. Present : Trustee Jackson, Moye, Perdue, Pontz and White - 5 Absent: Trustee Benavides, Goodin and McKane - 3 Present: Jan Lazar, Acting Secretary; Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Melvin McWilliams, Chief Assist. City Attorney; Ed Piioske, Internal Audit Dept. and Victor Rosasco, Prudential-Bache It was moved by Trustee Perdue, supported by Trustee Jackson that the minutes of the regular meeting for January 18 , 1990 and the special joint board meeting of February 6, 1990, be approved. Adopted by the following vote: Unanimoualy Trustee Pontz asked for an excused absence for the March Board meeting. The Secretary reported 0 new members, 0 reinstatements, 2 refunds and 3 retired. Total Membership; 962 . Refunds made since the last regular meeting $5 , 467. 83 . Retirement allowances paid for the month of January, 1990 amounted to $244,226 . 98 . It was moved by Trustee Moye, supported by Trustee Perdue that the Board approve having Mr. Victor Rosasco of Prudential-Bache give his presentation on Peformance Measurement Services for the period ending December 31, 1989 , for the Employees Retirement System. Adopted by the following vote: Unanimously. Mr. Victor Rosasco distributed to the Board copies of the Performance Measurement Services booklet for the period of December 31, 1989 for the General Employees Retirement System and provided his overview. Also in the brochures were copies of articles which Vic quickly touched upon re: "Value Investing Isn't Guaranteed Winner" from The Wall Street Journal, "A Case for Global Diversification" , and "A Sitting Bull" from Forbes. Discussion continued. Discussion was held on the fees that the money managers charge for investing in the market. Chairperson White asked Mr. Rubley if he 1 Employees Retirement System February 22, 1990 would bring back to the Board the amount of the total fees the Board has paid the money managers. In addition, Doug Rubley mentioned and Vic Rosasco agreed concerning the comments and recommendations made by Hal Rossen on February 20 , 1989 , that perhaps the Board would like to wait one year before doing any type of additional investing since meeting our current investment goals . Discussion held. It was moved by Trustee Jackson, supported by Trustee Pontz that the application for Regular Age and Service for David R. Fullerton, Police 911 Center, 8 years 1 month service credit and age 59 effective January 18 , 1990 , be approved, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas : Jackson, Moye, Perdue, Pontz and White - 5 Nays: None Discussion was held on Kunwar Rajendra, Planning Dept. , 13 years 9 months service credit, deferred under the Early Retirement Incentive, request for retro to 12/10/89 . Age to carry to 65 points. Age & Service to equal 65 . The Board asked Melvin McWilliams, Chief Assist. City Attorney, concerning re: the date of signing the application for retirement and coordination of payment of pension. Mr. McWilliams stated that after you apply for retirement the employer cannot hold up commencement of pension. Discussion held. It was moved by Trustee Perdue, supported by Trustee Jackson that the application for Regular Age & Service for Kunwar Rajendra be approved, however, being effective retro to 12/10/89 be denied due to application date of January 16 , 1990 , due to reference made by Mr. McWilliams Chief Assist. City Attorney, stating that there was an allowed reasonable time to set up for signing the application. Adopted by the following roll call vote: Yeas: Jackson, Moye, Perdue, Pontz & White - 5 Nays: None It was moved by Trustee Jackson, supported by Trustee Perdue that the following requests for Deferred Retirement (to age 58) be received and placed on file: Cynthia A. Currie, Police 911 Center Dept. , 14 years 9 months service credit, termination effective January 26 , 1990 . David Card, Public Service Dept. , 16 years 4 months service credit, termination effective March 9 , 1990 . 2 Employees Retirement System February 22 , 1990 Randy Chesney, Public Service Dept. , reciprocal retirement agreement Act 88 , 5 years 10 months service credit, termination effective March 16 , 1990. Adopted by the .following vote: Unanimously. Trustee Jackson left the meeting at 10 : 08 A.M. Discussion was held on employees that defer there retirement. It was suggested that the Retirement Office might consider handing out to these individuals some type of statement informing them that they are the ones who will be responsible to contact the Retirement Office at the time they reach 58 years of age and are ready to sign up for regular age and service retirement. Chairperson White informed the Board that a letter has gone out to the retirees that have Physicians Health Plan (PHP) notifying them that effective February 20 , 1990 , their standard policy will require a $5 . 00 office co-payment and a $4 . 00 prescription co- payment. Retirees who desire to change their coverage may do so during the upcoming open enrollment period from March 5 , 1990 thru March 30 , 1990 . Changes made during this time will be effective May 20 , 1990 . Also the Personnel & Training Dept. has scheduled in-service session programs for February 28 , 1990 and the retirees are invited to attend. Discussion was held. It was stated that it was optional but not required for the City to pay. Trustee Moye asked if the retirement ordinance made any reference to age 70 as a mandatory cut off for earning service credits for retirement purposes. Melvin McWilliams, Assist. City Attorney, advised the Board that he will look into this matter and return with additional information. Trustee Perdue inquired as to where the item of workman` s comp is now located. The Board was advised that it was still in Council committee along with the items of prefunding of health care and the buying back of service credits. Mr. Duarte is awaiting clear direction on these matters. Mr. Rubley distributed a copy of the portfolio summary from the National Bank of Detroit for funds evaluation as of January 31, 1990 for their review. Trustee Pontz asked that she please be sent any literature that the money managers might provide ahead of time concerning globle investing. The Meeting Adjourned at 10 :35 A.M. 3 Employees Retirement System February 22, 1990 Stephen W. Duarte, Secretary Employees Retirement System 4 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for March March 22 , 1990 8th Floor , Conference Room Thursday 8 : 37 A.M. City Hall Lansing, Michigan The Board of Trustee met in regular session and was called to order by Chairperson, Ruby White, at 8: 37 A.M. Present: Trustee Benavides , Goodin, Jackson, Moye, Perdue and White - 6 Absent: Trustee McKane and Pontz - 2 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Melvin McWilliams , Chief Assist. City Attorney; Ed Piloske, Internal Audit Dept. It was moved by Trustee Perdue, supported by Trustee Benavides that the minutes of the regular meeting for February 22 , 1990, be approved. Adopted by the following vote: Unanimously The Secretary reported 17 new members, 0 reinstatements, 4 refunds and 2 retired. Total Membership; 972. Refunds made since the last regular meeting $10 , 606 .71. Retirement allowances paid for the month of February, 1990 amounted to $248, 573 . 07. It was moved by Trustee Benavides, supported by Trustee Perdue that the application for Regular Age and Service for Melvin J. Lockwood, Public Service Dept. , 28 years 0 months service credit and age 56 effective May 1, 1990, be approved, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Goodin, Jackson, Moye, Perdue & White - 6 Nays: None Trustee Moye asked for an excused absence for the April Board meeting. It was moved by Trustee Benavides, supported by Trustee Moye that the Board excuse Trustee McKane and Pontz from the Board meeting. Adopted by the following vote: Unanimously. Mr. Duarte reported that he had drafted a letter to Mr. Barry Wilson, Capital Bidco, Inc. , and will need the Board' s approval to mail. 1 Employees Retirement System March 22 , 1990 The Secretary advised the Board again on the Bidco concept and Mr. Wilson' s willingness to put on a formal presentation. It was moved by Trustee Benavides, supported by Trustee Jackson that the Board concur with the Police & Fire Board that Mr. Duarte send a letter to Capital Bidco, Inc. indicating that, at the present time, they do not wish a formal presentation, but if at some future date the Boards desire to explore this option further he will be happy to contact him. Adopted by the following vote: Unanimously. Update on pre-funding of health care . Discussion was held. Mr. Duarte advised this Board that the Police & Fire Board would not support a pay increase for retirees pension until the prefunding issue is handled, and does this Board wish to approach this matter differently. Trustee Benavides stated that the Ways and Means Committee is split, at this time, and requests additional information. Mr. Duarte relayed to the Board that he has written a letter to Mr. Art DeLau of the URGE group re: concerning requesting an increase in the minimum pension benefit for those living in poverty, that the Ways and Means Committee is asking that he obtain information relative to total household income from each of the affected retirees , and that those retirees submit a copy of their most recent Homestead Property Tax Credit Claim form. Chairperson White passed the gavel in order to address prefunding of health care verses increases for retiree' s and the effect it has on the retirement system. Trustee Benavides asked how the initial funding for prefunding of health care would work and Mr. Duarte explained by reviewing the schedule on page 16 of the Supplemental Actuarial Report which shows the phase-in of the City' s contributions. The Secretary explained to the Board the position taken by Ways and Means Committee. They agreed that a letter should be drafted for the Police and Fire Retirees requesting data that would prove a need, as has been stated by the Lansing Retired Police & Fire Association. Trustee Moye inquired concerning the item on earning service credit while on worker' s comp. Mr. Duarte informed the Board that this item along with buy backs and prefunding of health care are all pending until Mr. Al Knot, City Attorney, has made a decision on the ordinance. 2 Employees Retirement System March 22 , 1990 Mr. Duarte distributed to the Board, for their information, a copy of a letter he had written to Mr. Kevin Lynch, The Townsend Group, regarding our retirement system decision not to proceed with real estate investments at this time . The Chairperson distributed to the Board copies of the agenda for the MAPERS 1990 Spring Conference at Shanty Creek Resort. Discussion was held and Trustee Jackson and White stated that they would be attending and any other Board members wishing to attend were to notify Mrs . Seldenright within the next few days . Doug Rubley distributed a copy of the portfolio summary from the National Bank of Detroit for funds evaluation as of February 28 , 1990 and presented an overview of the transactions by the outside money managers . Mr. Rubley stated that since real estate managers were not going to be hired, that the funds held in-house (approximately 1. 6 million dollars ) would not be distributed to the external managers. Mr. Rubley has begun to examine the expense related to the money managers fees. In addition, Mr. Rubley stated that he and Mr. Duarte have been looking into passive investing using index funding in relationship to the S & P 500 since it is approximately 1/2 the cost of using our money managers . Discussion was held, and it was the general consensus and recommendation of the Board to go into indexing and have Mr. Rubley bring back additional information on this matter. Doug informed the Board that there will be a Joint Board meeting on both May 15th and May 17th, following the regular Board meetings , for the purpose of the managers presentations and also addressing the item on global investing. Mr. Rubley advised that Lazard-Freres Asset Management Company will sponsor one of the meetings and another manager will sponsor the second meeting. Trustee Jackson informed the Board that she would be unable to attend the May Joint Board meetings because she was involved in UAW appeals. T e Ad ' urned at 10. 00 A.M. Stephen W. Duarte, Secretary Employees Retirement System 3 "AMENDED MINUTES" OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for April April 19, 1990 8th Floor, Conference Room Thursday 8 : 35 A.M. City Hall Lansing, Michigan The Board of Trustee met in regular session and was called to order by Chairperson, Ruby White , at 8 : 35 A.M. Present: Trustee Benavides, Goodin, Jackson, McKane, Perdue, Pontz and White - 7 Absent: Trustee Moye - 1 Present: Jan Lazar, Acting Secretary; Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Melvin McWilliams, Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. It was moved by Trustee McKane, supported by Trustee Goodin that the minutes of the regular meeting for March 22 , 1990 , be approved. Adopted by the following vote: Unanimously. The Secretary reported 6 new members , 0 reinstatements, 4 refunds and 1 retired. Total Membership: 973 . Refunds made since the last regular meeting $15, 438 . 91. Retirement allowances paid for the month of March, 1990 amounted to $248 ,013 . 37 . It was moved by Trustee McKane, supported by Trustee Pontz that the application for Regular Age and Service for Jane Gaukel, Police Civilian, 8 years 9 months service credit and age 58 effective, April 1, 1990 , be approved, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas : Benavides, Goodin, McKane, Pontz & White - 5 Nays: None It was moved by Trustee McKane, supported by Trustee Pontz that the application for Regular Age and Service for Glen C. Tucker, Parks Deparnd March 22, 1990 , be approved,rs 0 months service thatdit thea Secretary make effective the March necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Goodin, McKane , Pontz & White - 5 Nays: None Request for Disability Retirement for Donald Cartwright, Public Service Dept. The Chairperson di r bu eed copies of the medical 1 ACC 6 06, �NISh�k�7 •��?u Employees Retirement System April 19 , 1990 report from Dr. Guarnaccia to the Board for their review. Discussion was held. Trustee Jackson arrived at 8 : 42 A.M. Trustee Perdue arrived at 8 : 44 A.M. It was moved by Trustee Benavides, supported by Trustee Pontz that isability Retirement f or the Board aPupbrove a lic Servioce Dept. , 23 years r onld 3 months service credit, Cartwright, t, age 56 , and effective April 20 , 1990 . Adopted by the following roll call vote: Yeas: Benavides, Goodin, Jackson, McKane , Perdue, Pontz & White - 7 Nays : None Trustee White advised that Mrs. Glen Tucker stated that she and Mr. Tucker had talked with their attorney and he advised that Mr. Tucker should request a Regular Age and Service Retirement.. Mrs. Tucker further stated that this will not interfere with their claim for workers compensation as they feel that his disability is job related. Trustee Perdue stated that he still feels that anyone on worker ' s compensation should receive service credit, and Trustee White agreed with him. Trustee White did voice her concern that this not be retro-active as she was not certain that the records would be available. Ms. Lazar stated it is possible that, if negotiated through the bargaining unit employees could receive service credit, but placing it retro-active would lead to all kinds of problems. Trustee Perdue informed the Board that he had supported the package deal with prefunding of health care as it was to include as a total package that service credit be earned e hile on then he may wishworkers compensation, and that if this does not happen withdraw his support for prefunding of health care. Election of officers for Park Trustee. Ms . Lesley Seldenright, Retirement office, informed the Board that on June 30 , 1990 , Bennie Perdue' s term of office as Park Dept. Trustee will end. The term of office is for four years beginning July 1, 199& and expiring June 30 , 1994. The deadline for turning in nominating petitions will be 4: 00 P.M. on Tuesday, May 8 , 1990 . A Primary Election to determine nominees will be held over the two day period of Monday, June 4th and Tuesday, June 5th. The General Election to select the trustee member will be held over the two day period of Monday, June 2 Employees Retirement System April 19 , 1990 18-th and Tuesday, June 19th. She advised that the time schedule for the memo to be posted on the bulletin boards, advising the Park Dept. employees, would be short a couple of days due to the long holiday. weekend. This item was tabled while Melvin McWilliams, Chief Assist. City Attorney, reviewed the election rules and then advised the time schedule would be appropriate. It was moved by Trustee McKane, supported by Trustee Pontz that the Board approve the dates for the election of the Park & Recreation Department Trustee. Adopted by the following vote: Unanimously with Trustee White abstaining due to conflict of job position. Earnings Report for Duty Disability Retiree ' s for 1989 . Ms. Lazar advised the Board that it was time to mail out the Duty Disability Earnings Report for 1989 and asked for the Board' s approval It was moved by Trustee McKane, supported by Trustee Benavides that the Board authorize the Secretary to proceed with the mailing out of the 1989 Duty Disability Earnings Report for 1989 . Adopted by the following vote: Unanimously. Letter by Marion K. Hahn re: reinstatement & stop payment of pension benefits. Discussion held. Melvin McWilliams advised the Board that during the 60 ' s & 70 ' s a part of the ordinance was left out due to the publisher and in the present book this sectionof the ordinance does not show. He advised that Al Knot, City Attorney, will write the publisher to put back this language, ( 26- 16 ) of the ordinance. It was moved by Trustee McKane, supported by Trustee Benavides that the Board approve Marion Hahn' s reinstatement as a member under his new position in the Employee' s Retirement System and stop payment of his pension benefits , effective April 1, 1990 , under his original pension. Adopted by the following roll call vote: Yeas: Benavides, Goodin, Jackson, McKane, Perdue, Pontz and White - 7 Nays: None Kunwar Rajendra, Planning Department, Deferred under the Early Retirement Incentive until age carried him to 65 points. At the February 22, 1990, meeting the Board of Trustees placed him on retirement as of the date he made application for retirement (January 16, 1990) . Today, Melvin McWilliams, Chief Assist. City Attorney, addressed the Board advising them that the Early Retirement Incentive Plan was silent to the requirement that application be made therior to the Board pay effective ac tdate ve to retirement date Mr.. and recommended 3 Employees Retirement System April 19 , 1990 Rajendra qualified with 65 points (December 10 , 1989) . It was moved by Trustee Benavides, supported by Trustee McKane that the Board approve paying Mr. Kunwar Raiend nsion n fitsaretro from January 16 , 1990 (date he made application) retirement date of December 10 , 1989 . Adopted by the following roll call vote: Yeas: Benavides, Goodin, Jackson, McKane, Perdue & White - 6 Nays: None Abstaining: Pontz - 1 Trustee Benavides advised the Board that the item to look at the recommendation of Mr. Duarte` s to utilize 20% of the Contingency Reserve Fund for improving the benefits for police isc & f it was heeds will be on the Council agenda Monday evening. Trustee White distributed to the Board a draft of a proposed recommendation to City Council by the General Employees Retirement System to be incorporated with the adoption of prefunding of health d care in the event council adopts the prefunding concept using 80% of the contingency reserve That the "Member Fund" , 20% of the contingency reserve, be invested for a three year period to be disbursed with the November 30 check of the . 3rd year (with a cut off date for interest of 050 o ber of the following the adoption of the prefunding of health care, earned income of the Members Fund be divided among all the retirees & beneficiaries of the General Employees Retirement System who are drawing a retirement allowance and also provided that they have been retired for three complete s Fund to make t continue toegrow. interest to go into the Melvin McWilliams advised f rt20% ohe police he eCo& Fire Retirement nt Contingency Reserve Fund• has no established formal Trustee McKane suggested that this Board might want to pass an established policy on this bitem. l The Board members will check on this item to see what can It was moved by Trustee Jackson, supported by Trustee Benavides that the Board t Trustee vote•Moye from the Unanimously,meeting. Adopted by the following Trustee Jackson and Pontz informed the Board that they would be unable to attend the May Joint Board meetings. Mr. Doug Robley distributed the agers through Decembern31,s1989r Fees on Performance of External approximately 1/2 of 1% is spent on management fees explaining that per year and that Prudential Bache is paid in soft dollars , e would prefer to make a change in which however, Doug indicated h 4 Employees Retirement System April 19 , 1990 they would be paid in hard dollars. Trustee Jackson and McKane left the meeting at 10 : 01 A.M. ew he idea of a Mr. Robley mentioned that the if the perdformance might rof lthe tmoney manager floating scale, that is, goes up the fee could go and Mr Rubleyperformance also discussed with the fee would also revert do Board the possibility of index funding in reference the the last 500 , advising that the S & P has been in the top q 7 to 8 years and that the fee for using them as an inv our epreset manager would be about 1/2 the cost of what we pay money managers. Mr. Rubleyadvised3 d manager,recommendations will be forthcoming re: indexing as a In addition, Mr. Rubley past out copies of the portolio summary 30 , from the National of Detroit vew of the for n evaluation as of transactions by theaoutside 1990 , and presented an o memo money managers. D eu ort on Taxable Mung indicated to the B on rd that h giving saashort attached to this p explanation and along with thaSass Associates . Doug also advised the of account sheet from report that Board that there were 3 pages in the portfolio summary P actually had 2 sections of each page indicating a comparison of the trade value. The Board was also interested in reviewing the evaluation ossen of Prudential-Bache. This item is performance of Mr. Hal R to be placed on the June agenda for discussion. The Meeting Adjourned at 10 : 39 A.M. J�' Stephen W. Duarte, Secretary Employees Retirement System 5 JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS Radisson Hotel May 15 , 1990 2nd Floor, Regency II Room Lansing, Michigan The Joint Board of Trustees meeting was called to order by Chairperson, Jack Cushman, at 10 : 00 A.M. Present: Board Members: Barkyoumb, Cushman, Goodin, Hunnell, Luzynski, McKenzie, and White - 7 Absent: Board Members : perdue, & Pontz - 6 Benavides , McKane, Jackson, Moye , Present: Others: Lesley Stephen W. Duarte, Secretary; Doug Rubley & Y Seldenright, Finance Dept. ; Ed Piloske , Internal Audit; Hal Rossen & Jo Ann Shanley, Prudential-Bache; Tom Frazes & Peter McCarthy of Lazard Freres; and Fred Thorne & Alan Fields of Harbor Capital Mr. Hal Rossen introduced the Board to Jo Ann Shanley who recently joined Prudential-Bache to replace Carolyn Koliba as Consulting Coordinator. Mr. Rossen gave a presentation on19performance also measurement services for the quarter ended March al, Global Equity nd distributed to the Board an article on "Why Investing" , the rewards and risks. Fred Thorne and Alan Fields of Harbor Capital Management Co. provided a presentation on the City of Lansing Retirement Systems performance summary for the Police & Fire Retirement System and the General Employees Retirement System reviewing such items as: 1) asset mix, 2) economic outlook in the areas of autos, housing, capital spending, government spending, inflation, profits interest rates, and 3 ) Portfolio analysis (growth & value sHarbor- In addition, they distributed to the Board a pamplet on, Baer International" on international investing. Tom Frazes and Peter McCarthy of Lazard Freres Asset Retirement also provided a p sentation on the City of Lansing Systems advising a)WUheer��U U6of Capital Market Performance, Joint Board Meeting May 15 , 1990 2) Equity Strategy and 3 ) future outlook. In addition, Lazard Freres passed out an item on international equity performance. The Joint Boards Adjourned at 11: 57 A.M. Stephen W. Duarte, Secretary Retirement Boards-Joint Meeting 2 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for May May 17, 1990 Jim' s Tiffany Thursday 8 : 44 A.M. Capitol Room, 2nd Floor Lansing, Michigan The Board of Trustee met in regular session and was called to order by Chairperson, Ruby White, at 8 : 44 A.M. Present: Trustee Goodin, Jackson, McKane, Moye, Perdue, Pontz & White - 7 Absent: Trustee Benavides - 1 Present: Stephen W. Duarte, Secretary; Lesley A. Seldenright & Doug Rubley, Finance Dept. ; Melvin McWilliams , Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. It was moved by Trustee Moye , supported by Trustee Perdue that the minutes of the regular meeting for April 19 , 1990 , be approved as amended. There was additional information on Mr. Glen Tucker and after Mr. Duarte' s signature at the conclusion of the minutes a correction was made for Employees Retirement System rather than Police & Fire. Adopted by the following vote: Unanimously. The Secretary reported 9 new members , 0 reinstatements , 0 refunds and 2 retired. Total Membership: 980 . Refunds made since the last regular meeting $ . 00 . Retirement allowances paid for the month of April, 1990 amounted to $248 ,514. 80 total number of retirement checks printed ERS 445 , total retirement checks printed for all three systems 816. It was moved by Trustee McKane, supported by Trustee Pontz that the application for Regular Age and Service for Richard A. Peiffer, District Court, 9 years 1 months Service Credit and age 62 , effective 6/1/90 , be approved, and that the Secretary make the necessary transfer of funds . Adopted by the following roll call vote: Yeas: Goodin, Jackson, McKane, Moye, Perdue, Pontz & White - 7 ' Nays : None Mr. Duarte certified to the Board that one nominating petition was received by the Retirement System Office by 4: 00 P.M. on May 8 , 1990 for Bennie Perdue, Parks Ijpt$ ,W o*neflo Me names of persons signing the nominating petition have been compared with the active :A8 Employees Retirement System May 17 , 1990 membership rolls of the Employees Retirement System and there were no invalid signatures to be removed from the petition. He further certified that one candidate has filed a valid petition. Due to only one party running for the trustee position, it will not be necessary to hold a Primary or General Election and the candidate, Bennie Perdue, shall be deemed as the Park & Recreation Dept. Trustee to the Employees Retirement System and will serve on the Board from July 1, 1990 through June 30 , 1994. It was moved by Trustee McKane, supported by Trustee Jackson that the Board support the certification of Bennie Perdue as the Park & Recreation Dept. Trustee to the Employees Retirement System for the period of July 1, 1990 thru June 30, 1994. Adopted by the following vote: Unanimously. Earnings Report for Duty Disability Retiree ' s for 1989 . Mr. Duarte informed the Board that a letter has been drafted and was mailed out to all the Duty Disability Retirees informing them that the Charter requires that a statement of earnings be filed annually with the Board of Trustees. This form for 1989 is to be returned to the Finance Office before June 30, 1990 . Lengthy discussion was held concerning council' s action to use 20% of the Police and Fire Contingency Reserve Fund, within the Police & Fire Retirement System, to give some Police & Fire retirees and widows with 20 or more years of service increased retirement benefits. This action was reported to be against the Police and Fire Board' s request that it be delayed until the concept of pre- funding of health care is determined. Trustee White read to the Board a rough draft of language that would utilize 20% of the Contingency fund to invest and every three years allow all retiree' s and beneficiaries retired in the Employees Retirement system to receive a bonus from 50% of the earned interest, shared equally this to be considered in connection with prefunding of health care. She stated that the concept would need to be reviewed by the City Attorney as to the legality and legal language would need to be written if the Board would like to consider it as a proposal. Discussion was held on the language that might be used. Mr. Duarte recommended that the Board try to move forward on the health care issue prior to making decisions on the 20% of the contingency reserve. Mr'. Duarte also stated that there are a lot of items in both ordinances that need. to be changed, but that we need to take one item at a time. It was moved by Trustee McKane, supported by Trustee Moye that the Board request the City Attorney to review the language in the draft as to legality and return to the Board with a recommendation. 2 Employees Retirement System May 17 , 1990 Adopted by the following vote: Unanimously. It was moved by Trustee Pontz , supported by Trustee Moye that the Board excuse Trustee Benavides from the Board meeting. Adopted by the following vote: Unanimously. Trustee McKane left the meeting at 9: 40 A.M. Mr . Doug Rubley distributed to the Board copies of the portfolio summary from the National Bank of Detroit for funds evaluation as of April 30 , 1990 . Mr. Rubley gave a short presentation on investments and advised the Board that Hal Rossen will speak at the Joint Board meeting on the performance evaluation of Prudential Bache. In addition, presentations will be given by Loomis , Sayles and M. D. Sass money managers. The Meeting Adjourned at 9 : 53 A.M. Stephen W. Duarte, Secretary Employees Retirement System 3 JOINT BOARD MEETING BOARD OF TRUSTEES CITY OF LANSING RETIREMENT SYSTEMS Jim' s Tiffany Place May 17 , 1990 Capitol Room, 2nd Floor Lansing, Mich. The Joint Board of Trustees meeting was brought to order at 10 : 00 A.M. Present: Board Members: Barkyoumb, Cushman, Goodin, Luzynski, Moye, Pontz & White - 7 Absent: Board Members : Benavides, McKane, Hunnell, McKenzie, Jackson, & Perdue - 6 Present: Others: Stephen W. Duarte, Secretary; Doug Rubley & Lesley A. Seldenright, Finance Dept. ; Ed Piloske, Internal Audit; Jerry Seizert & John Hill of Loomis Sayles; Hugh Lamle of M.D. Sass; and Hal Rossen of Prudential-Bache Jerry Seizert and John Hill of Loomis, Sayles & Company distributed a booklet to the Board and gave a presentation on the General Employees Retirement System and Police & Fire Retirement System on the performance summary reviewing key economic issues such as: 1) inflation, 2) real economic activity, 3 ) international factors, 4) monetary policy & fixed income holdings. Trustee Barkyoumb, Moye and Pontz left the meeting at 11: 29 A.M. Hugh Lamle of M. D. Sass distributed to the Board members a report on the City of Lansing General Employees Retirement Trust and the Police and Fire Retirement System Trustee discussing with the members such items as : 1) corporate bond equivalent yields, 2) current coupon treasury notes and bonds, and 3 ) fixed income securities (government, corporate & municipal bonds) . The Joint Boards Adjourned at 12:38 A.M. Stephen W. Duarte, Secretary Retirement Boards-Joint Meeting OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for June June 21, 1990 8th Floor, Conference Room Thursday 8 : 40 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8 : 40 A.M. Present: Trustee Goodin, Jackson, Moye, Perdue, Pontz and White - 6 Absent: Trustee Benavides & McKane - 2 Present: Stephen W. Duarte, Secretary; Lesley A. Seldenright & Doug Rubley, Finance Dept. ; and Ed Piloske, Internal Audit Dept. It was moved by Trustee Perdue, supported by Trustee Jackson that the minutes of the regular meeting for May 17 , 1990 and Special Joint board meetings for May 15 , 1990 and May 17, 1990 , be approved. Adopted by the following vote: Unanimously. The Secretary reported 7 new members , 1 reinstatement, 5 refunds and 3 retired. Total Membership: 980. Refunds made since the last regular meeting $10 , 072.78 . Retirement allowances paid for the month of May, 1990 amounted to $251, 236 . 02 total number of retirement checks printed ERS 447, total retirement checks printed for all three systems 819 . It was moved by Trustee Pontz, supported by Trustee Perdue that the application for Regular Age and Service Retirement from Deferred status for Gene P. King, Building Dept. , 11 years 3 months Service Credit and age 58, (retro to May) as it was left off the agenda, effective 5/1/90 , be approved, and that the Secretary make the necessary transfer of funds . Adopted by the following roll call vote: Yeas: Goodin, Jackson, Moye, Perdue, Pontz & White - 6 Nays: None Request to deferred retirement to age 58 , Jeffrey E. Bartrem, Planning/Development Dept. It was moved by Trustee Perdue, supported by Trustee Moye that the Board approve the request 'a-T 8LggrTd j56twrement to age 58 for ��t 8 1 9NISINV 1 Jeffrey E. Bartrem, Planning/Development Dept. , with 9 years 2 months service. Adopted by the following roll call vote: Yeas: Goodin, Jackson, Moye, Perdue, Pontz & White - 6 Nays: None Request to deferred retirement to age 58 , Charles M. Creamer, City Council. It was moved by Trustee Perdue, supported by Trustee Jackson that the Board approve the request to deferred retirement to age 58 for Charles M. Creamer, City Council, with 8 years 0 months service credit. Adopted by the following roll call vote: Yeas: Goodin, Jackson, Moye, Perdue, Pontz & White - 6 Nays: None The Secretary, Mr. Duarte, distributed to the Board a copy of a schedule on the earnings report for Duty Disability retirees for 1989 . He advised that he had sent a letter to all the Duty Disability retirees stating that the Ordinance requires that a statement of earnings be filed annually with the Board of Trustees and that the form must be returned by June 30 , 1990 . In addition, if they do not reply Mr. Duarte will mail out a second request and then a final notice. Discussion was held. The Board advised they wished to table this item until next month' s meeting. The Secretary advised that the updated schedule that had been handed out is to also be used for the review of the medical status of the Duty Disability retirees. Discussion was held. It was moved by Trustee Jackson, supported by Trustee Perdue that the Board table this item until next month' s meeting. Adopted by the following vote: Unanimously. The Secretary distributed to the Board members for their review a copy of . the proposal to increase benefits to retirees and beneficiaries. Chairperson White also handed out a corrected copy of the last page of the proposal adjusting only a comma. The Chairperson recommended that the Board review this item and bring it back to next month' s board meeting. Mr. Duarte recommended that this proposal to increase benefits to retirees and beneficiaries not be adopted until the prefunding of health care is resolved. Discussion held. It was moved by Trustee Moye, supported by Trustee Pontz that the proposal to increase benefits to retirees and beneficiaries be table until next month' s July meeting. 2 Employees Retirement System June 21, 1990 Adopted by the following vote: Unanimously. Discussion was held with regard to the performance of Prudential Bache and the method of payment. Mr. Duarte addressed his concerns with respect to payment in soft dollars as opposed to hard dollars and the potential for conflicts. Also, discussion was held concerning the possibility of inviting in another evaluation firm to address the Board providing them certain information, and then requesting that they provide actual data in the area. of performance evaluation relating directly to our four money managers. Discussion was held and the Secretary advised that he would place this item on the agenda for the next Police and Fire Board meeting for their review and that he would look into the possibility of a new performance evaluation manager and return to this Board for their direction. The Secretary informed the Board that the Lansing City Council has approved a resolution recommended by the Finance Director and the Mayor to create an alternative retirement plan covering non- bargaining unit full-time permanent employees of the City and highlighted a few items: 1) anyone hiring on or after September 1, 1990 would be covered by a defined contribution retirement plan; 2 ) new hires shall not be members of the Employee Retirement System, but shall have instead full rights in the new "Retirement Plan" and shall be considered vested as to the employer contribution after 3 years credited service in the Plan; 3 ) employees in this plan may contribute up to 50 of their wages as an additional contribution; 4 ) current non-bargaining unit employees may withdraw the funded present value of their accrued benefits in the ERS and transfer said funds into, and become a member of the new "Retirement Plan" and this shall be a one-time option available from Sept. 1, 1990 to March 1, 1991; 5 ) those electing this option shall retain the same rights as any other member of the Employees Retirement System to post-retirement health and life insurance ; and 6 ) City offers a continuing early retirement option (65 points & out) to current non-bargaining unit members of the ERS. It was moved by Trustee Jackson, supported by Trustee Pontz that the Board excuse Trustee Benavides and McKane from the meeting. Adopted by the following vote: Unanimously. Trustee Jackson asked for an excused absence for the July meeting. Mr. Doug Rubley distributed to the Board copies of the portfolio summary from the National Bank of Detroit for funds evaluation as of May 31, 1990 , and presented an overview of the transactions by the outside money managers. Mr. Rubley indicated that this system 3 Employees Retirement System June 21, 1990 will be able to carry forward funds for a length of time for the purpose of meeting payroll and paying fees for the money managers. Mr. Rubley also discussed with the Board the item on indexing which will be tied directly to the S & P 500 , and that the Board might consider trying small amounts at first which would be used for the purpose of the payroll, etc . Trustee Jackson left the meeting at 10 : 00 A.M. Doug advised that he will have a request for proposal concerning the indexing fund for the Board to review by the next meeting. He mentioned that he felt the Board did not need outside assistance to pick an index manager. The Meeting Adjourned at 10 : 15 A.M. Stephen W. Duarte, Secretary Employees Retirement System 4 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for July July 26, 1990 8th Floor, Conference Room Thursday 8 : 41 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8 : 41 A.M. Present: Trustee Benavides, Goodin, Moye, Perdue & White - 5 Absent: Trustee Jackson, McKane & Pontz - 3 Present: Stephen W. Duarte, Secretary; Lesley A. Seldenright & Doug Rubley, Finance Dept. ; and Ed Piloske, Internal Audit Dept. It was moved by Trustee Perdue, supported by Trustee Moye that the minutes of the regular meeting for June 21, 1990, be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member, 0 reinstatements , 3 refunds and 1 retired. Total Membership: 977. Refunds made since the last regular meeting $2 , 805 . 34. Retirement allowances paid for the month of June, 1990 amounted to $250 ,718.77 total number of retirement checks printed ERS 446 , total retirement checks printed for all three systems 819 . The Secretary, Mr. Duarte , advised the Board that all 4 Duty Disability retirees have returned their Earnings Reports for the calendar year 1989 , and that he will be reviewing them to see if there is any adjustment. Mr. Duarte distributed copies and read the memo to the Board from the Personnel Director, Karen Jackson, re: Duty Disability Review. It was stated that the Duty Disability retirees had been reviewed by the Medical Director last year. In addition, Ingham Medical' s Center for Occupational Health Programs becomes the provider for medical services to the city' s injured employees effective August 1, 1990 . Discussion was held. It was moved by Trustee Perdue, supported by Trustee Moye that the Board table the item on the medical status of Duty Disability Retirees until the records are completely reviewed. Adopted by the following vote: Unanimously. Review proposal to ir#fe sWnnefits to retirees and beneficiaries . Melvin McWilliams, Assi t. i y bVMney, informed the Board that :A 8 Nl L'3-10 r Employees Retirement System July 26 , 1990 at the recently concluded conference of the National Association of Public Pension Attorneys , it was suggested that Public Employee Retirement Plans should be reviewed to determine whether an election should be made to grandfather benefits paid pursuant to plan provisions in effect on October 14 , 1957 where those benefits exceed the Section 415 limits. Such election will have to be made this year, and should be made if benefits are being paid in honorable tax treatment for retirement plan earnings. Careful attention should be paid to early retirement benefits, and to long- term low-paid employees whose benefits may have been bumped up above and beyond permissible cost of living increases. Discussion was held. It was moved by Trustee Moye, supported by Trustee Benavides that the Board table the item on the proposal to increase benefits to retirees and beneficiaries until the Secretary (Finance Director) has an opportunity to research the language in Section 415 of the Internal Revenue Code. Adopted by the following vote: Unanimously Mr. Duarte advised the Board that the performance of Prudential Bache had been discussed at the Police and Fire Board meeting and that they concurred with this Board to request that the Secretary look into the possibility of a new performance evaluation manager. Also the Secretary stated that Doug Rubley was developing information to be sent out: 1) initial screening process, 2} from the final group we will take a series of data back to our money manager and do an analysis so that the Board can review, and 3 ) Mr. Hal Rossen will be contacted advising that we are testing the waters for a new performance evaluation manager. In addition, after the list of major firms have been condensed down to 3 or 5 then a joint Board meeting will be held for reviewing these firms. The Secretary, Mr. Duarte, informed the Board that reservations for 4 rooms have been made at the Amway Grand Plaza. Hotel in Grand Rapids for the MAPERS 1990 Fall Conference for Sept. 30 thru Oct. 2, 1990 , and that those attending have notified Mrs. Seldenright. Mr. Doug Rubley apprised that Board members that due to other commitments Mr. Hal Rossen of Prudential-Bache requested that he be placed first on the agenda for the August Board meeting so that he can provide his performance evaluation. It was moved by Trustee Benavides, supported by Trustee Perdue that Trustee Jackson, McKane and Pontz be excused from the meeting. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Trustees copies of the portfolio 2 Employees Retirement System July 26 , 1990 summary from the National Bank of Detroit for funds evaluation as - of June 30 , 1990 , and presented an overview of the transactions by the outside money managers. Doug stated that a draft on the RFQ and RFP re: manager - index fund is completed and has been mailed out. Also that there is a list of 8 to 10 vendors available to him. The Meeting Adjourned at 9 : 37 A.M. Stephen W. Duarte, Secretary Employees Retirement System 3 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING. EMPLOYEES RETIREMENT SYSTEM Regular Meeting for August August 23 , 1990 8th Floor, Conference Room Thursday 8 : 40 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8 : 40 A.M. Present: Trustee Benavides, Goodin, Jackson, Moye, Perdue, Pontz and White - 7 Absent: Trustee McKane - 1 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Ed Piloske, Internal Audit Dept. ; and Hal Rossen & Jo Ann Shanley, Prudential Bache It was moved by Trustee Perdue, supported by Trustee Goodin that the minutes of the regular minutes for July 26 , 1990 , be approved. Adopted by the following vote: Unanimously. The Secretary reported 7 new members, 0 reinstatements, 1 refund and 0 retired. Total Membership: 983 . Refunds made since the last regular meeting $2,199 . 92 . Retirement allowances paid for the month of July, 1990 amounted to $250 ,718 .77 total number of retirement checks printed ERS 446 , total retirement checks printed for all three systems 819. Mr. Hal Rossen and Jo Ann Shanley of Prudential Bac 199 gave and performance evaluation for the quarter ended June 30, distributed to the Board copies of articles on "How' s the Market Doing" , and on the" Closing Market Comment" for 8/22/90 . Mr. Duarte, Secretary, asked Mr. Rossen a few questions: 1) How, in your professional opinion, is the portfolio doing concerning the risk factor, 2) Do you agree with the current 3 )n As a money manager' s strategy that they are presently using, would you have any advise for us concerning what we might watch for or have an impact in our strategy. Mr. Duarte recommended that Mr. Rossen, at the next Board meeting, provide to the Board members , in writing, his recommendations concerning any changes in investment strategy, and given the level of risk, what should we have earnpd$ib�ht PT56 st capital market. M 1 Al3,. ON{SNVI Employees Retirement System August 23 , 1990 The Secretary distributed and read aloud to the Board a memo from Karen Jackson, Personnel Director, re: duty disability review. Mr. Duarte stated concerning the following individuals: 1) Mr. Fleming - the Board did not send him back for examination last year since his disability date was 5/20/88 ; 2) Mr. Goodsell - moved to Arizona in 1982 and did not recommend bring him back for examination; Mr. Lipka - doctor did not recommend any further review and 4) Mr. Luks - the Board did not send him back for examination last year since his disability date was 6/24/88 . ad to the Board Section 26-32 . " Re-examination of Mr. Duarte re disability read ts" from Chapter 26 of the General Employees Retirement System. Trustee Jackson left the meeting at 9 : 57 A.M. Chairperson White asked Melvin McWilliams, Chief Assist. City Attorney, to respond to section 26-32 . Mr . McWilliams stated that the Board is not required to send a disability retirant back to the Medical Director for a re-examination once each year during the first 5 years , or not restricted once in every three years period thereafter. it was moved by Trustee Moye, supported by Trustee Perdue that the Board not recommend sending Mr. Fleming, Mr. Goodsell, Mr. Lipka or Mr. Luks back to the Medical Director for an medical examination at this time. Adopted by the following vote: Unanimously Short discussion was held on the performance of Prudential Bache. Mr. Duarte reiterated that the recommendations would be forthcoming es in at the next meeting from Mr. Hal Rossen concerning any and what should we have earned given the level investment strategy level of risk. Trustee Benavides left the meeting at 10 :04 A.M. Trustee Purdue left the meeting at 10: 06 and returned at 10: 07 A.M. Discussion was held re: contract agreement with Gabriel, Roeder, Smith & Company. It was moved by Trustee Perdue, supported by Trustee Pontz that the Board approve the contract with Gabriel, Roeder, Smith & Company, Actuary, for the normal actuarial and consulting services, beginning July 1, 1990 through June 30 , 1991, and authorization for the Chairperson to sign fee 11 contract $9 ,760 subject to the payable review quabterly the City Attorney. Theee w 2 Employees Retirement System August 23 , 1990 installments of $2, 440 . 00 . Adopted by the following vote: Unanimously. it was moved by Trustee Perdue, supported by Trustee Goodin that the Board excuse Trustee McKane from the Board meeting. Adopted by the following vote: Unanimously. Doug Rubley advised the Board that there was a class action suit with E.F. Hutton with a total settlement of $8 , 000 , 000 and the City of Lansing received a reimbursement of $6 ,466. 68 for this system and was returned to Rollart Sullivan/Lazard Freres managers who owned that stock in our portfolio. In addition, Mr. Rubley stated that the portfolio was down approximately 60 due to the world situation. Also, Mr. Rubley informed the Board that on September 1st the City contribution will come in and he will be holding it in-house, 2) the RFQ for the index fund is completed and is going out for mailing & advertising, and 3 ) he is working on the RFQ for the performance evaluation manager. The Meeting Adjourned at 10 : 15 A.M. Stephen W. Duarte, Secretary Employees Retirement System 3 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for September September 20, 1990 Jim' s Tiffany Place Thursday 8 : 35 A.M. Capitol Room 2nd Floor Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8 : 35 A.M. Present: Trustee Goodin, Jackson, McKane, Moye, Pontz and White - 6 Absent: Trustee Benavides and Perdue - 2 Present: Stephen W. Duarte, Secretary; Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Ed Piloske, Internal Audit Dept. ; Melvin McWilliams, Chief Assist. City Attorney and Alan Sonnanstine, Gabriel Roeder Smith & Co. It was moved by Trustee Pontz, supported by Trustee Moye that the minutes of the regular meeting of August 23 , 1990 , be approved as amended, changing the title under the Secretary' s signature from Police & Fire to Employees Retirement System. Adopted by the following vote: Unanimously. The Secretary reported 3 new members , 0 reinstatements, 5 refunds and 0 retired. Total Membership: 983 . Refunds made since the last regular meeting $6 ,455. 64 . Retirement allowances paid for the month of August, 1990 amounted to $250 ,718.77 total number of retirement checks printed ERS 446 , total retirement checks printed for all three systems 820 . It was moved by Trustee McKane , supported by Trustee Goodin that the application for Regular Age and Service for: Anna M. Dingman, Fire Department, 23 years 8 months service credit; age 65 , effective October 6 , 1990 Delano F. Sudberry, Public Service, Deferred Retiree, 16 years 11 months service credit, age 58 , effective December 1, 1990 . be approved, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: 6 Yeas: Goodin, Jackson, McKane, Moye, Pontz & White - till Nays: None 6Z :A`3 �r Employees Retirement System September 20 , 1990 Mr. Alan Sonnanstine of Gabriel, Roeder, Smith & Company gave a presentation on the Annual Actuarial auation les Retire tfor December 31, 1989 for the City of Lansing Mr. Duarte informed the Board that the new Alternative Retirement Plan for the Employee' s Retirement System, Ordinance 4823 will take effect October 1, 1990 . The Secretary, Mr. Duarte, gave an update on Section 415 of the IRS and Code. Attention should be paid to early ees whose benefitslrement may have been1bumped to long term low-paid employees up above and beyond permissible cost Of living have nor asses.problems . Duarte advised, 1) that the City appears this area, 2 ) that requesting to be grandf athered in (before October 1st) will result in more stringent egu 4�a that the City in the future, 3 ) we are in compliance with the code, should take no action at this time, however, we should keep a close watch on Section 415 . Trustee Jackson left the meeting at 9 : 48 A.M. ome of the top paid employees Mr. Duarte was concerned about s Section 415 and discussion was within the City in reference to held. The Secretary requested that Mr. Sonnanstine of Gabriel Roedsion benefits, er prepare a list of funded present the computer, as of December 31, member, using the datawant to 1989, in order to assist new Alternative gible retirementoyees plan,who may transfer t It was moved by Trustee McKane, supported by Trustee Moye that the Board excuse Trustee Benavides and Perdue from the Board meeting. Adopted by the following vote: Unanimously. Trustee McKane left the meeting at 9: 55 A.M. The meeting adjourned at 9: 55 A.M. due to a lack of a quorum. Mr. Duarte distributed to those present a copy of the current Inc. for investment status as o€ August 1, land from990 Capital was held. In the Trustees to read privately Secretary, concurrence with the Police & Fire Board Inc: Duarte, orming them that will send another letter to Capital Bidco, taking the Trustees have been presented all information, however, into consideration their fiduciary responsibilities they are not interested in pursing this type of investment. 2 Employees Retirement System September 20 , 1990 Mr. Rubley informed the Board that he and Mr. Duarte are reviewing the contract with Prudential-Bache re: defining responsibilities of the evaluation consultant and questioning whether we have been receiving, as a board, the contractually required information. Mr. Duarte advised that he will inform Mr. Rossen prior to interviewing other firms. Doug Rubley apprised the Board that the RFQ I s on the index fund are now due in and that next month he will have additional information on this item. Mr. Rubley distributed to the Board a copy of the portfolio summary from the National Bank of Detroit for funds evaluation as of August 31, 1990 , and presented an overview of the transactions by the outside money managers. Q� W 1& Stephe W. Duarte, Secretary Employees Retirement System 3 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for October October 18, 1990 8th Floor, Conference Room Thursday, 8:37 a.m. The Board of Trustees met in regular session and was called to order by Vice Chairperson Rita Pontz at 8:37 a.m. Present: Trustee Goodin, Jackson, McKane, Moye and Pontz - 5 Absent: Trustee Benavides, Perdue and White - 3 Others Present: Doug Rubley and Teri Cook, Finance Department; Ed Piloske, Internal Audit; Melvin McWilliams, Law Department It was moved by Trustee McKane, supported by Trustee Moye that the minutes for the September 20, 1990 meeting be approved as submitted. Adopted by the following vote: Unanimously. The Secretary reported 3 new members, 0 reinstatements, 2 refunds and 0 retired. Total Membership: 984. Refunds made since the last regular meeting $950.34. Retirement allowances paid for the month of September, 1990 amounted to $250,375.95. Total number of retirement checks printed ERS 444, total retirement checks printed for all three systems 819. It was moved by Trustee McKane, supported by Trustee Goodin that the application for Regular Age & Service Retirement for: Myrtis L. Smith, Human Resources, 20 years 2 months service credit, effective October 20, 1990. Leslie Mitchell, Public Service/Transportation, 14 years 3 months service credit, effective January 3, 1991. be approved, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Goodin, Jackson, McKane, Moye and Pontz - 5 Nays: None It was moved by Trustee McKane, supported by Trustee Goodin that the Board excuse Trustee Benavides, Perdue and White from the Board meeting. 1� Adopted by the followinl�rJ'i&j:&j�Un� -v- r 'A S 9NISNb7 Employees Retirement System Minutes of October 18, 1990 Page 2 Mr. Rubley distributed to the Trustees copies of the portfolio summary from National Bank of Detroit for funds evaluation as of September 30, 1990 and presented an overview of the transactions by the outside money managers. The meeting adjourned at 9:00 a.m. Stephen W. Duarte, Secretary Employees Retirement System OFFICIAL, PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for November November 15 , 1990 8th Floor Conference Room Thursday 8 : 40 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperson, Ruby White, at 8: 40 A.M. - Present: Trustee Goodin, Jackson, McKane, Pontz , & White - 5 Absent: Trustee Benavides , Moye and Perdue - 3 Present: Stephen W. Duarte, Secretary; and Lesley Ann Seldenright & Doug Rubley, Finance Dept. It was moved by Trustee McKane, supported by Trustee Goodin that the minutes of the regular meeting for October 18 , 1990, be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member, 0 reinstatements, 0 refunds and 2 retired. Total Membership: 983 . Refunds made since the last regular meeting $ . 00 . Retirement allowances paid for the month of October, - 1990 amounted to $251 ,830 . 43 total retirement checks printed for all three systems 826 . It was moved by Trustee McKane, supported by Trustee Goodin that the application for Regular Age and Service for Raymond J. Feldpausch, Admin. Service/Central Garage, 30 years 0 months service, age 55, effective January 3 , 1991, be approved and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas : Trustee Goodin, Jackson, McKane, Pontz & White - 5 Nays: None co Mr. Duarte distributed to the Board an informational sh t-on Capital Bidco, Inc. , current status as of September 1, 19 'and stated that this was for information only and would be recei�dnd;. placed on file with no action necessary. Mr. Duarte advise` that: G he had notified Capital Bidco of the Board' s position of not be'ng interested at this time. r It was moved by Trustee McKane, supported by Trustee Pontz th33 t e c� Board excuse Trustee Moye and Perdue from the meeting. co Adopted by the following vote: Unanimously. cn 1 Employees Retirement System November 15 , 1990 It was moved by Trustee McKane, supported by Trustee Pontz that the Board also excuse Trustee Benavides from the meeting. Adopted by the following vote: Unanimously. Mr. Doug Rubley distributed to the Board a copy of the portfolio summary from the National Bank of Detroit for funds evaluation as of November 15 , 1990 and an update was given regarding the municipal bonds held by M.D. Sass that are backed by GIC' s with First Executive. Mr. Duarte requested that Mr . Harold Rossen of Prudential-Bache provide an independent analysis of the options currently under consideration by M.D. Sass. Mr. Hal Rossen will attend our next meeting in December to provide the performance evaluation. Mr. Rubley also informed the Board that Mr. Rossen has personally been contacted by himself concerning the matter on the mark down in the bonds held by M.D. Sass. Mr. Duarte asked Trustee Jackson, Personnel Director, to provide a copy of the Handicapper Accommodation agreement to the Board members. Trustee White stated that she had attended a retiree' s luncheon and advised that the retirees questioned where did the City stand on the bonus proposed for the retirees of the Employees Retirement System and the prefunding of health care. Mr . Duarte advised that there is a letter on file to the Council from himself and that at this time he has a letter of agreement from the Teamsters and Firefighters union that we proceed with prefundingf he 1th U.A.W.care. as n it addition,would be D ice eto ahavted eththeir at he may contact indorsement also. The Meeting Adjourned at 9: 13 A.M. Stephen W. Duarte, Secretary Employees Retirement System 2 RECD. LA1%!SiNG BY: '90 DEC 20OFMIC8A5$PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting for December December 13 , 1990 8th Floor Conference Room Thursday 8 : 40 A.M. City Hall Lansing, Michigan The Board of Trustees met in regular session and was called to order by Chairperso_i, Ruby White, at 8 : 40 A.M. Present: Trustee Goodin, Jackson, Moye , Perdue, Pont- & White-6 Absent : Trustee Benavides and McKane - 2 Present : Stephen W. Duarte, Secretary- Lesley Ann Seldenright and Doug Rubley, Finance Dent . ; Melvin McWilliams , Chief Assist . City Attorney; and Ed Piloske, Internal Audit Dept . It was moved by Trustee Goodin, supported by Trustee Moye that the minutes of the regular meeting for November 15 , 1990 , be approved. Adopted by the following vote : Unanimously. The Secretary reported 0 nevi members , 0 reinstatements , 2 refunds and 0 retired. Total Membership : 931 . Refunds made since the last regular meeting $2 , 722 . 34 . Retirement allowances paid for the month of November, 1990 amounted to $252 , 795 . 22 total number of retirement checks printed ERS 445 , total retirement checks printed for all three systems 827 . It was moved by Trustee Pontz , supported by Trustee Jackson that the application for Regular Age & Service Retirement for: Margaret Black, Police (Civilian) , 27 years 7 months service credit, effective 1/5/91 . Elena Gravina, Planning/Development , 25 years 5 months service credit, effective 12/28/90 . Donald Janecke, Finance/Accounting, 14 years 4 months service credit, effective Jan. 5 , 1991 . Sandra T . Unrue, Finance/Income Tax, 13 years 7 months service credit, effective 1/30/91 . Don Bretz , ' Finance/Treasurer, 6 years 3 months service credit, Deferred under Reciprocal Retirement Agreement 12/26/76 , effective 12/l/90 . be approved, and that the Secretary make the necessary transfer of funds . Adopted by the following roll call vote : Yeas : Goodin, Jackson, Moye, Perdue, Pontz & White - 6 Nays : None Discussion was held re : Request for Duty Disability Retirement for Robert Ball , Public Service . A letter was received from Howard McCaffery, Director of Public Service , requesting that Mr . Ball be placed on Duty Disability and has been before the Handicapper Accommodation Committee. It was moved by Trustee Pontz , supported by Trustee Goodin that the Board approve sending Mr. Robert Ball , Public Service Dept . , to the Medical Director for an examination and that a letter be sent to him explaining the two types of disability retirement in accordance with the Board' s previous ruling. Adopted by the following vote : Unanimously. It was moved by Trustee Moye , supported by Trustee Pontz that the Board approve a Non-Duty Death benefit for Mrs . Adado , widow of Mr . Lou Adado deceased 11/27/90 , 14 years 11 months service credit . Adopted by the following roll call vote : Yeas : Goodin, Jackson, Moye, Perdue, Pontz & White - 6 Nays : None Mr. Durate distributed to the Board a hand-out on the Procedures for Duty & Non-Duty Disability Retirement for their review and to be placed on file . The Board reviewed and approved the proposed monthly meeting dates for the 1991 calendar year. It was moved by Trustee Perdue, supported by Trustee Goodin that the Board re-elect Trustee White as Chairperson to the Board of Trustees for the Employees Retirement System for the 1991 calendar year. Adopted by the following vote : Unanimously. It was moved by Trustee Jackson, supported by Trustee Perdue that the Board elect Trustee Robert Moye as Vice-Chairperson to the Board of Trustees for the Employees Retirement System for the 1991 calendar year. Adopted by the following vote: Unanimously. Mr. Duarte advised the Board that a letter from Mr. Russell Galvin, former City Assessor, re : Reciprocal Retirement Agreement, had been forwarded to the City Attorney for his review and opinion. Trustee Pontz had distributed to the Board copies of House Bill No . 5241 re: Act 274 , PA 1990 , Dec . 3 , 1990 , new ruling on the "Reciprocal Retirement Act" . Briefly she highlighted that it was a Bill to amend: 1) that the member enters the employ of each succeeding governmental unit within 15 years after the date of leaving the employe of each preceding governmental unit; 2 ) if the member has withdrawn the accumulated deposits that the re-deposit be made within 5 years after the date the member becomes employed by the succeeding governmental unit; and 3 ) that service credits can be transferred from one unit of government to another unit of government only by entering into an agreement with the reciprocal unit of government . (This may transpire on a case by case basis ) Chairperson White turned the gavel over to Vice-Chairperson Pontz so that she might address this issue . Trustee White stated that she felt that the Board may want to send a recommendation to the City Council not to have the City review on a case by case basis , but rather set policy. Mr . Duarte, Secretary, advised that he and Mr . McWilliams , Chief Assist . City Attorney, would get a copy of the enrolled Bill on the "Reciprocal Retirement Act" , review it completely and return to the Board with a recommendation. It was moved by Trustee Jackson, supported by Trustee Goodin that the Board excuse Trustee Benavides and McKane from the meeting. Adopted by the following vote : Unanimously. Mr . Doug Rubley advised that he did not have copies of the portfolio summary from the National Bank of Detroit for funds evaluation as yet due to the Board meeting being held early this month. Hal Rossen and Jo Ann Shanley of Prudential-Bache gave a presentation cn the performance evaluation report for the Employees Retirement System quarter ending September 30 , 1990 . Mr . Rossen stated that the Board could review the strategy weekly brochure that was in the portfolio folder and an article from the Dick Davis Digest on investment ideas . Also, he addressed the situation with M.D . Sass , money managers , in relationship to the downgrading of bonds (G. I . C' s ) held by ( First Executive-Parent Company) . Trustee White left and returned to the meeting on several occasions due to working on the Police & Fire Retirement System, Police Trustee, election . Trustee Jackson left the meeting at 9 : 54 A.M. Mr . Rossen was asked and recommended that at this time if the City was offered an 80 to 85% recovery in the bonds purchased by M.D . Sass he would advised accepting the offer rather than waiting until maturity in 1996 . Mr. Duarte stated that this would need to be a fully documented process including the recommendation of Pru Bache before he would recommend to the Board the selling of these bonds . Mr. Rossen did agree with Mr. Duarte . Trustee Moye left the meeting at 10 : 04 A.M. and returned at 10 : 10 A.M. Hal Rossen recommended to the Board to follow the lead that is brought back to them from M.D . Sass concerning the 80 o drop in the market value of the G. I . C. ' s and do not make a change in money managers until this situation is resolved. Mr . Rossen distributed information to the Board and gave an update on the different stvles of investment management . In addition, a hand-out was given to the Board on the City of Lansing, Employee ' s Retirement System Asset Allocation Study and he reviewed such items as expected return and risk, international equities , diversification, etc . The Meeting Adjourned at 10 : 47 A.M. Stephen W. Duarte, Secretary Employees Retirement System