The URL can be used to link to this page

Home My WebLink About1986 Employees Retirement System Annual ReportY,q, e /�,� , 0, P/)- CITY OF LANSING, MICHIGAN EMPLOYEES' RETIREMENT SYSTEM ANNUAL REPORT DECEMBER 31, 1986 FORTY-SIXTH ANNUAL FINANCIAL REPORT EMPLOYEES' RETIREMENT SYSTEM CITY OF LANSING, MICHIGAN YEAR ENDED DECEMBER 31, 1986 CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 1986 TABLE OF CONTENTS Table of Contents . Letter of Transmittal Administrative Organization Balance Sheets Statement of Revenues, Expenses and Changes in Fund Balance Statements of Changes in Financial Position Changes in Fund Balance Reserves Securities Common Stock Investment Portfolio Analysis Statement of Membership Retirants and Beneficiaries Members Retired During 1986 Beneficiaries Added to Roll 1986 Terminations 1986 Page 1 2 - 4 5 6 7 8 9 10 - 12 13 - 14 15 16 17 18 19 20 -1- FINANCE DEPARTMENT James W. Dowsett, Director of Finance 831 City Hall Lansing, Michigan 48933 (517)483-4500 Terry J. McKane, Mayor July 31, 1987 Board of Trustees Employees' Retirement System City of Lansing, Michigan Dear Trustees: Presented herewith is the Forty -Sixth Annual Report of the Secretary covering operations of the Employees' Retirement System for the year ended December 31, 1986. BALANCE SHEET Fixed income securities totaled $26,717,089 on December 31, an increase of $5,444,072 during the year. Of the $26,717,089 fixed income securities, $1,000,000 are rated "AAA", $3,810,000 are rated "AA", "AA111, 11AA211, "AA3" and $3,445,000 are rated "A1", 11A211, 11A31t, $175,000 are rated "BAT", $2,000,000 rated "B1" and $16,287,089 are government and agency bonds. These securities mature from March 1, 1988 to March 1, 2026 and have interest rates ranging from 4.125% to 15.5%. We hold $17,455,101 of government and agencies bonds, and the balance in public utilities, industrial, transportation, finance, municipals and real estate bonds. The net unamortized premium and discount increased by $1,631,464 during the year and accrued interest at December 31, 1986 increased by $49,020. In addition to the above fixed income securities, the Retirement System owned 419,050 shares of various common stocks at a cost of $15,901,297 and U.S. Treasury notes, repurchase agreements and trust demand notes totalling $6,779,258. The Reserve for Employee Contributions decreased by $115,177 during the year under review. Active member accounts of 854 totaled $3,215,864, 27 deferred retirement accounts totaled $149,687, 78 inactive accounts totaled $77,892, 6 duty disability accounts totaled $50,281 and 6 reciprocal unit accounts total $16,694. The above 971 members represent 116,550 service credit months. According to our Actuary, the Reserve for Employer Contributions increased $3,113,211 and the Reserve for Benefit payments increased $2,013,489 during the year, making a total increase of $5,126,700. -2- "Equal Opportunity Employer" Total reserved fund balance on December 31, 1986 was $50,394,150 with net assets of $47,497,947 leaving an unfunded accrued liability of $2,896,203, or a decrease of $1,753,447 during the year. This liability is being amortized over a 30 year period. REVENUES AND EXPENDITURES City contribution amounted to $3,100,000 during the year. Member contribu- tions totaled $42,102 and refunds of member contributions (those leaving the system prior to retirement) totaled $31,643. For the year the cost of investment services totaled $284,745. The interest and dividends on investments was $3,057,654 and the net gain on the exchange of securities was $2,675,747 for a total increase of 14% in the average book value of assets of $41,248,762. Market value of the assets was 5% above book value at December 31. During the year, $102,789 in interest was credited to the Reserve for Employee Contributions, $4,350,925 in interest and dividends was credited to the Reserve for Employer Contributions, and $1,279,687 in interest was credited to the Reserve for Benefit payments. Net benefits paid totaled $1,794,145. There were 393 retirees on the roll at December 31. Age and service retirees totaled 335, 10 were duty disability, 2 duty disability beneficiaries, 12 non -duty disability, 3 non -duty disability beneficiaries, 30 non -duty death beneficiaries and 1 duty death beneficiary. Twenty-five members retired during the year having an average age of 61 years and an average service credit of 21 years. Annual pension benefits of these retirees will total $228,982; increasing annual pension benefits payable by the System to $1,869,592. Twenty retirees died during the year with total annual benefits of $77,558, eight of the retirees that died during the year had beneficiaries and they will receive a total yearly benefit of $25,682. GENERAL COMMENTS The actuarial evaluation of December 31, 1906 indicates that the rate of contributions should be 16.29% of total valuation payroll for 1987. There is a total of $3,400,000 budgeted in the 1987-88 City of Lansing budget for the City's contribution to the Retirement System in accordance with the actuarial recommendations. There were significant amendments to Michigan investment law in 1982. The level of assets which may be invested in stocks was increased from 25% to 60%. There was a broadening of allowable investment grade holdings and a new definition of fiduciary responsibility and authority. Progressive steps have been taken to facilitate the ongoing review of invest- ment policy and procedures and to maximize investment return. Custodial services have been contracted with the National Bank of Detroit to provide for the direct deposit and reinvestment of dividends and interest and proceeds from the sale of securities. This "state of the art" service also provides for more efficient recordkeeping. The Board of Trustees has selected 4 outside money managers; Harbor Capital Management Company, Inc. and Lazard Freres Asset Management Company to handle equity investments; Loomis Sayles & Company and M.D. Sass Investors Services, Inc. to handle fixed income investments. Performance evaluation services are contracted with Prudential-Bache Funds Evaluation Services to provide for -3- quarterly reports on investment performance and as a management tool for evaluating the results of investment policy decisions. From December 31, 1984 through June 30, 1987 the Fund earned an annualized total rate of return of 17.3%. Total investment performance exceeded the Fund's objective of CPI plus 4% by 10.3 percentage points. The Actuarial Valuation Report concludes that the Retirement System is in very good actuarial condition. Sound provision is being made for the increasing number of retirement allowances expected in future years. It has been a pleasure to work with the Board of Trustees in the past year, and with your continued surveillance and support, the employees of our City can be assured the benefit of one of the finest retirement systems in the country. JWD:1s Respectfully submitted, W. James W. Dowsett Finance Director -4- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM BOARD OF TRUSTEES DECEMBER 31, 1986 Ruby V. White, General Trustee, Chairperson Rita Pontz, Appointed Citizen, Vice Chairperson Terry J. McKane, Mayor Karen M. Jackson, Director of Personnel Louis F. Adado, City Council Brian Kuchik, City Treasurer Bennie W. Perdue, Parks & Recreation Trustee Charles L. Leland, Public Service Trustee . 6-30-88 6-30-87 Indefinite Indefinite Indefinite Indefinite 6-30-90 6-30-89 �'c4c�ekYe4c:c�c�4c�tk9e9c:c:c:cie4c�'e�'e:c*s�c�'c4c�<:c�Y4c4c4c4c9c4e:c9c�*�Y��eic*4c*ic:c9e�e�'c�'c4cic:e4e-'e�c�'e4c*4c�'c�c�'cxx�:e:c4c*�cie�'e� Secretary ...................................................James W. Dowsett ActingLegal Advisor...........................................Alvan P. Knot Actuary.........................................Gabriel, Roeder, Smith & Co. Medical Director.........................Lansing Occupational Medical Center Office: 8th Floor, City Hall, Lansing, MI 48933 Phone: (517) 483-4500 -5- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM BALANCE SHEETS — — — — — December-31,— Current assets: Cash on deposit $ 13,043 $ 5,188 Investments, at cost or amortized cost: - Repurchase agreement 291,200 114,500 Trust demand notes 5,238,058 1,684,349 U.S. Government obligations and U.S. Government agencies, market value $17,484,797 and $15,741,547 16,598,221 14,843,767 Bonds, market value $9,388,827 and $7,336,813 9,225,369 7,317,216 Common stocks, market value $17,376,851 and $18,812,066 15,901,297 16,510,028 Total investments 47,254,145 40,469,860 Accounts receivable 4,875 125 Accrued interest receivable 475,646 426,627 Dividends receivable 41,491 44,315 Total current assets $47,789,200 $40,946,115 Liabilities and Fund Balance Current liabilities: Warrants payable $ 169,214 $ 140,822 Accounts payable 122,039 72,316 Total current liabilities 291,253 213,138 Fund balance: Reserved for employee contributions 3,510,418 3,625,595 Reserved for employer contributions 26,055,897 23,842,686 Reserved for benefit payments 19,927,835 17,914,346 Total reserved fund balance 50,394,150 45,382,627 Unreserved fund balance (deficit) (2,896,203) (4,649,650) Total fund balance 47,497,947 40,732,977 Total liabilities and fund balance $47,789,200 $40,946,115 CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE Year ended December 31, _ 1 n n � -- -- -- i. n -71 � Operating revenues: Contributions by employees $ 42,102 $ 38,339 Contributions'by City 3,100,000 2,800,000 Total Contributions 3,142,102 2,838,339 Income from investments: Interest and dividends 3,057,654 3,087,357 Gain (loss) on sale of investments 2,675,747 (15,373) Total investment income 5,733,401 3,071,984 Total operating revenues 8,875,503 5,910,323 Operating expenses: Investment services 284,745 232,472 Payments to pensioners and beneficiaries 1,794,145 1,610,272 Contributions refunded to former employees 31,643 64,928 Total operating expenses 2,110,533 1,907,672 Net income 6,764,970 4,002,651 Fund balance, at beginning of year 40,732,977 36,730,326 Fund balance, at end of year $47,497,947 $40,732,977 —7— CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM STATEMENTS OF CHANGES IN FINANCIAL POSITION Source of working capital: Operations - net income Changes in working capital components: Increase (decrease) in current assets: Cash on deposit Investments Accounts receivable Accrued interest receivable Dividends receivable Decrease (increase) in current liabilities: Warrants payable Accounts payable Increase in working capital Year ended December 31, _ 1986 1955 $6,764,970 $4,002,651 $ 7,855 $ 2,301 6,784,285 3,983,005 4,750 (2,631) 49,019 (203,085) (2,824) 31,481 (28,392) (15,103) (49,723) 206,683 $6,764,970 $4,002,651 Balance, January 1, 1986 Additions: Contributions by employees Contributions by City Income from investments Total balance & additions Transfers on retirement i Actuarial adjustment in unfunded accrued liability Total revised balances Deductions: Investment services Payment to pensioners & beneficiaries Contributions refunded to former employees Total deductions Balance, December 31, 1986 CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM CHANGES IN FUND BALANCE RESERVES Fund Balance Reserved for Employee Contributions $3,625,595 42,102 102,789 3,770,486 (228,425) 3,542,061 31,643 31,643 $3,510,418 Fund Balance Reserved for Employer Contributions $23,842,686 3,100,000 4,350,925 31,293,611 (2,299,522) (1,753,447) 27,240,642 284,745 284,745 $26,955,897 Fund Balance 1986 Total Reserved for Reserved Benefit Fund Payments Balance $17,914,346 $45,382,627 42,102 3,100,000 1,279,687 5,733,401 19,194,033 54,258,130 2,527,947 (1,753,447) 21,721,980 52,504,683 1,794,145 1,794,145 $19,927,835 284,745 1,794,145 31,643 2,110,533 $50,394,150 1985 Total Reserved Fund Balance $40,418,583 38,339 2,800,000 3,071,984 46,328,906 961,393 47,290,299 232,472 1,610,272 64,928 1,907,672 $45,382,627 EMPLOYEES RETIREMENT SYSTEM SECURITIES (EXCEPT COMMON STOCK) DECEMBER 31, 1986 NOMINAL PAR MARKET SECURITY MATURITY RATE VALUE COST VALUE ------------------------------------------------------------------------------------------------------- DEMAND NBD BANKS SHORT TERM INVESTMENT 12-31-86 8.397% $5,238,058 $5,238,058 $5,238,058 MANUFACTURERS (B.O.L. REPO) 12-31-86 8.300% $291,200 $291,200 $291,200 TOTAL DEMAND $5,529,258 $5,529,258 $5,529,258 U.S. GOVERNMENTS COUPON TREASURY RECEIPTS 02-15-91 12.000% $780,000 $503,370 $580,289 TREASURY INVESTMENT GROWTH RECEIPTS 11-15-91 0.000% $199,500 $132,656 $140,650 USA TREASURY NOTES SER. D 11-15-93 11.750% $1,250,000 $1,546,357 $1,550,775 USA TREASURY BONDS 08-15-05 10.750% $350,000 $436,784 $444,063 USA TREASURY SECURITIES 08-15-06 0.000% $1,000,000 $187,786 $203,590 USA TREASURY BOND 05-15-16 7.250% $250,000 $243,456 $238,750 TOTAL U.S. GOVERNMENTS $3,829,500 $3,050,409 $3,158,116 AGENCIES FEDERAL HOME LOAN BANKS SER. J 02-27-89 10.800% $600,000 $599,681 $651,000 FEDERAL HOME LOAN BANKS SER. E 03-26-90 11.900% $600,000 $619,100 $686,622 FEDERAL FARM CREDIT BANKS SER D 09-04-90 12.500% $400,000 $417,246 $466,248 FEDERAL FARM CREDIT BANKS SER C 07-22-91 14.700% $500,000 $493,043 $639,060 FEDERAL HOME LOAN BANK 12-27-93 7.375% $3,000,000 $3,002,344 $2,989,680 FEDERAL FARM CREDIT BANKS 09-01-94 13.000% $500,000 $538,961 $646,560 FEDERAL NATIONAL MORTGAGE ASSN. 08-12-96 8.150% $2,000,000 $2,027,482 $2,052,500 FEDERAL HOME LOAN MORTGAGE CORP. 10-01-96 8.650% $500,000 $498,703 $519,685 INTERNATIONAL BK FOR RECON & DEVEL 10-15-02 12.375% $400,000 $415,988 $524,252 FEDERAL HOUSING ADMIN POOL #48 06-01-22 7.430% $456,979 $401,570 $374,152 TOTAL AGENCIES $8,956,979 $9,014,118 $9,549,759 NOMINAL PAR MARKET SECURITY MATURITY RATE VALUE COST VALUE ------------------------------------------------------------------------------------------------------- PASSTHROUGHS GNMA 03-15-95 10.250% $353,980 $330,980 $368,139 GNMA 07-15-01 9.000% $246,584 $243,040 $250,591 GNMA 03-15-04 8.000% $208,658 $200,051 $205,006 GNMA 06-15-05 8.000% $308,079 $295,371 $302,687 GNMA 06-15-05 8.000% $189,834 $182,003 $186,512 GNMA 04-15-08 8.250% $313,508 $293,326 $310,373 FHLM 07-01-09 4.250% $280,008 $223,312 $256,907 GNMA 07-15-09 9.500% $424,703 $413,289 $442,222 GNMA 09-15-09 9.500% $365,311 $357,548 $380,380 GNMA 03-15-10 11.000% $357,559 $364,263 $385,270 GNMA 04-15-15 12.000% $647,770 $671,258 $700,401 GNMA 07-15-16 9.000% $972,628 $959,254 $988,433 TOTAL PASSTHROUGHS $4,668,622 $4,533,694 $4,776,922 MUNICIPALS ALASKA HOUSING FINANCE CORP. 06-01-93 10.750% $220,000 $220,406 $220,191 ADAMS CO. COLO 11-01-96 9.000% $500,000 $503,718 $502,350 TOTAL MUNICIPALS $720,000 $724,124 $722,541 FINANCE E.F. HUTTON CREDIT CORP. 09-15-89 12.900% $350,000 $350,000 $355,222 GENERAL MOTORS ACCEPTANCE CORP. 10-15-89 7.125% $500,000 $500,000 $502,260 SPERRY LEASE FINANCE CORP. 04-15-91 11.000% $231,988 $239,456 $242,474 FORD MOTOR CREDIT CORP. 07-07-93 FLOATING $300,000 $299,961 $299,625 ASSOCIATES CORP. N.A. 08-15-94 12.750% $400,000 $473,318 $485,940 FORD MOTOR CREDIT CORP. 06-01-95 11.000% $700,000 $728,987 $771,540 GENERAL MOTORS ACCEPTANCE CORP. 03-01-96 8.875% $500,000 $509,739 $516,360 AMERICAN EXPRESS CREDIT CORP. 12-01-96 7.875% $500,000 $497,025 $498,100 FIRST FEDERAL SAV & LOAN ASSN. AZ 11-01-00 0.000% $1,000,000 $267,208 $271,450 FIRST FEDERAL SAV & LOAN ASSN. AZ 11-01-06 0.000% $1,000,000 $161,843 $154,210 TOTAL FINANCE $5,481,988 $4,027,537 $4,097,181 NOMINAL PAR MARKET SECURITY ------------------------------------------------------------------------------ MATURITY RATE VALUE COST VALUE INDUSTRIAL PHILLIP MORRIS COMPANIES INC. 12-15-95 9.700% $500,000 $535,884 $542,475 USG CORP. 12-15-96 8.000% $500,000 $498,000 $493,140 RJR NABISCO INC. 08-01-97 11.200% $300,000 $321,648 $325,488 TOTAL INDUSTRIAL $1,300,000 $1,355,532 $1,361,103 PUBLIC UTILITY ATLANTA GAS LIGHT CO. 03-01-88 4.375% $145,000 $141,299 $141,237 LONG ISLAND LIGHTING CO. 05-01-88 4.125% $175,000 $173,272 $163,926 SOUTHERN NEW ENGLAND TELEPHONE CO. 03-01-91 4.125% $100,000 $99,851 $88,642 CONSOLIDATED EDISON CO OF NY INC. 06-01-91 4.750% $100,000 $95,636 $90,740 NORTHERN ILLINOIS GAS CO. 08-01-91 6.000% $70,000 $70,274 $66,620 GENERAL TELEPHONE & ELECTRONICS CORP. 12-01-91 15.500% $400,000 $449,737 $455,208 COMMONWEALTH EDISON CO. 08-15-16 9.625% $500,000 $513,562 $512,465 NEW ENGLAND TELEPHONE & TELEGRAPH CO. 03-01-26 9.000% $400,000 $401,478 $405,476 PACIFIC BELL 03-01-26 9.250% $400,000 $406,210 $411,444 TOTAL PUBLIC UTILITY $2,290,000 $2,351,319 $2,335,758 REAL ESTATE VALLEY FED SAV & LOAN VAN NUYS CA 06-15-90 11.000% $200,000 $194,280 $204,658 TRANSPORTATION MISSOURI PACIFIC RAILROAD CO. 09-15-93 15.500% $320,000 $373,497 $442,490 LOUISVILLE & NASHVILLE RAILROAD CO. 09-01-94 10.500% $200,000 $199,080 $225,096 TOTAL TRANSPORTATION $520,000 $572,577 $667,586 TOTAL SECURITIES $33,496,347 $31,352,848 $32,402,882 EMPLOYEES RETIREMENT COMMON STOCK DECEMBER 31, 1986 NUMBER OF MARKET STOCK --------------------------------------------------------------------------- SHARES COST VALUE ALZA CORP. 10,800 $167,400 $201,150 AMERICAN INTERNATIONAL GROUP INC. 3,200 188,261 195,600 AMERICAN STANDARD INC. 4,000 163,183 171,500 AMOCO CORP. 4,000 273,360 261,000 BOB EVANS FARMS INC 5,250 111,313 . 95,813 BOEING CO. 3,000 142,852 153,375 BRISTOL MYERS CO. 3,100 263,716 256,138 CALMAT CO. 8,300 265,346 337,188 CAPITAL CITIES/ABC INC. 1,400 374,580 375,375 CARLOLINA POWER & LIGHT CO. 5,500 201,306 212,438 CBS INC. 2,300 309,219 292,100 CENTRAL ILLINOIS PUBLIC SERVICE 10,000 299,911 280,000 COMPUTER ASSOC INTL INC. 3,500 79,858 96,250 CONSOLIDATED STORES CORP. 8,900 156,373 120,150 CRAY RESEARCH INC. 5,200 338,554 420,550 DE LUXE CHECK PRINTERS INC. 6,000 187,937 211,500 DIGITAL EQUIPMENT CORP. 3,100 184,434 324,725 DIME SAVINGS BANK NY 12,000 213,625 217,500 DONNELLY R.R. & SONS CO. 1,400 64,466 85,750 DU PONT E I DE NEMOURS & CO INC. 3,300 237,703 277,200 DUN AND BRADSTREET CORP. 5,500 520,811 578,875 GANNETT COMPANY INC. 7,500 498,554 540,938 GENERAL CINEMA CORP. 4,000 186,415 177,000 GENERAL ELECTRIC CO. 3,300 261,810 283,800 GENERAL RE CORP. 3,200 194,592 177,600 GENETICS INST. INC. 10,000 279,500 182,500 GOODYEAR TIRE & RUBBER CO. 7,000 203,084 293,125 GTE CORP. 7,000 286,350 408,625 HANDLEMAN CO 7,300 266,477 208,050 HARRIS CORP. DEL. 10,000 303,910 297,500 HEALTH CARE PROPERTY INVESTORS INC. 10,000 248,750 291,250 INFORMATION RESOURCES INC. 13,500 272,000 263,250 INSILCO CORP. 14,700 297,594 292,163 INTERNATIONAL BUSINESS MACHINES 1,400 177,926 168,000 -13- EMPLOYEES RETIREMENT COMMON STOCK DECEMBER 31, 1986 NUMBER OF MARKET STOCK --------------------------------------------------------------------------- SHARES COST VALUE ITT CORP. 5,600 308,144 298,900 JOHNSON & JOHNSON 4,500 304,945 295,313 JWT GROUP INC. 2,600 103,641 77,350 KANSAS CITY SOUTHERN INDUST. INC. 4,400 210,453 207,900 KANSAS POWER & LIGHT CO. 5,500 301,000 299,063 LOTUS DEVELOPMENT CORP. 2,000 62,185 103,500 MARRIOTT CORP. 8,000 120,912 232,000 MASCO CORP. 10,000 266,068 290,000 MCDONALDS CORP. 4,000 167,099 243,500 MELVILLE CORP. 3,000 214,770 162,000 MERCK & COMPANY INC. 3,900 355,855 483,113 MONSANTO CO. 4,800 259,832 367,200 NEW YORK TIMES CO. 7,200 128,232 255,600 OGILVY GROUP INC. 4,500 144,868 133,875 OLD REP INTL CORP. 9,000 321,405 246,375 PENNWALT CORP. 6,500 332,183 323,375 PENNZOIL CO. 4,300 316,486 288,100 PHARMACIA 14,500 359,379 320,813 PIC N SAVE CORP. 8,100 141,734 171,113 PUGET SOUND POWER & LIGHT CO. 8,400 198,668 175,350 PURITAN-BENNETT CORP. 12,000 279,430 354,000 ROYAL DUTCH PETROLEUM CO. 4,500 288,546 429,750 RYLAND GROUP 7,600 157,305 151,050 SCANA CORP. 5,000 196,772 183,125 SCHLUMBERGER LIMITED 4,900 159,593 155,575 SEAMAN FURNITURE CO. 8,000 311,798 336,000 SHELBY WILLIAMS INDUSTRIES INC. 20,000 346,760 340,000 SQUIBB CORP. 4,900 395,805 558,600 STOP AND SHOP COS 5,000 260,154 255,000 WALT DISNEY CO. 4,100 217,414 176,813 WAL-MART STORES INC. 4,600 126,815 213,900 WASTE MANAGEMENT INC. 9,000 321,881 500,625 TOTAL COMMON STOCKS $15,901,297 $17,376,851 -14- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM INVESTMENT PORTFOLIO ANALYSIS DECEMBER 31, 1986 Par Value Percentage ------------ ---------- _Repurchase Agreement $5,529,258 11.19% U.S. Treasury Notes 1,250,000 2.53% Bonds: Moody's "AAA" rated 1,000,000 2.02% Moody's "AA1" rated 1,670,000 3.38% Moody's "AA2" rated 1,020,000 2.06% Moody's "AA3" rated 900,000 1.82% Moody's "AA" rated 220,000 0.45% Moody's "Al" rated 1,500,000 3.04% Moody's "A2" rated 1,045,000 2.12% Moody's "A3" rated 900,000 1.82% Moody's "BAT" rated 175,000 0.35% Moody's "B1" rated 2,000,000 4.05% Not rated (U.S. Government & Agencies) 16,287,089 ------------ 32.97% Total bonds 26,717,089 54.09% Common Stocks at cost 15,901,297 ------------ 32.19% ---------- Total investments $49,397,644 100.00% CLASSIFICATION OF BONDS ------------------------------ Cash equivalents Demand obligations $5,529,258 16.51% Bonds: U.S. Governments 3,829,500 11.43% Agencies 8,956,979 26.74% Passthroughs 4,668,622 13.94% Municipals 720,000 2.15% Finance 5,481,988 16.37% Industrials 1,300,000 3.88% Public Utility 2,290,000 6.84% Real Estate 200,000 0.60% Transportation 520,000 ------------ 1.55% Total $33,496,347 ------------ ------------ 100.00% ---------- ---------- -15- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM STATEMENT OF MEMBERSHIP DECEMBER 31, 1986 Membership - December 31, 1985 Add: New members during year Total Deduct: Members retired 25 Resigned and contributions refunded 46 Membership - December 31, 1986 Summary of Membershi Number Annuity Savings Active Members 854 $3,215,864 Deferred 27 149', 687 Duty Disability 6 50,281 Reciprocal Unit 6 16,694 Inactive 78 77,892 Total 971 $3,510,418 73 1,042 71 971 Service Credit Months 107,062 4,023 2,016 441 3,008 116,550 �Q -16- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM- RETIRANTS AND BENEFICIARIES DECEMBER 31, 1986 Type of Benefits Being Paid Age and Service Benefits: Regular service benefit - benefit terminatinb at death of retirant Option I benefit - cash refund annuity plus pension terminating at death Option A benefit - 100% joint and survivor Option B benefit - 50% joint and survivor Option A & B beneficiaries Total age and service benefits Casualty Benefits: Duty disability benefits Duty disability beneficiaries Non -duty disability benefits Non -duty disability beneficiaries Non -duty death beneficiaries Duty death beneficiaries Total casualty benefits Total benefits Annual Benefits Number Being Paid 109 $ 504,241 25 132,198 63 415,932 90 503,326 48 91,466 335 $1,647,163 10 $ 45,017 2 5,103 12 60,113 3 4,175 30 106,633 1 1,388 58 222,429 393 $1,869,592 -17- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM MEMBERS RETIRED DURING 1986 Annual Date of Age at Service Type of Retirement Name Retirement Retirement Yrs. Mos. Retirement Benefit Ball, Doris 01/86 62 20 8 Regular $ 6,977.52 Clay, Sam 01/86 63 17 1 Option B 11,859.36 Reincke, Leland 01/86 57 32 9 Option A 16,489.80 Rouse, Russell 02/86 62 14 10 Option A 5,078.76 Dyer, Margie 02/86 59 15 5 Regular 6,747.96 Davis, George 03/86 62 37 4 Regular 17,351.64 Tostevin, John 03/86 55 33 3 Option A 12,814.56 Gillette, Russell 03/86 62 13 7 Option B 7,240.08 Bunn, Dewi.ght 04/86 62 12 4 Option B 4,570.56 Chandler, Louis 04/36 61 24 10 Regular 9,589.30 Perry, Richard 05/86 63 34 0 Option A 14,155.68 Garlock, Barbara 05/86 66 15 4 Regular 6,922.68 Taylor, George 06/86 61 26 6 Regular 12,850.08 Gothrup (John) Agnes 06/86 68 16 8 Non -Duty 5,928.96 Death -A Martin, Larry 07/86 58 12 1 Option B 10,051.92 Underhill, Evelyn 08/86 60 15 6 Regular 6,324.12 Miller, George 09/86 62 11 0 Option A 6,926.28 Pinkston, Deloris 09/86 58 21 0 Regular 8,327.04 Case, N. Joyce 10/86 58 15 5 Def. to Reg. 5,193.72 Adair, Raymond 11/86 57 30 10 Option B 12,858.72 DeFrance, Charles 11/86 60 12 9 Def. to Reg. 2,653.20 Haskell, Theodore 11/86 60 27 1 Def. to B 9,246.36 Rhodes, Coy 11/86 67 16 2 Option B 6,197.64 Hawk, Melvin 11/86 56 22 7 Non-D. Dis. 10,045.32 Regular Acker, (Carl) Betty 11/86 56 23 11 Non -Duty 12,579.84 Death -A Total $228,981.60 -18- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM BENEFICIARIES ADDED TO ROLL 1986 Date Aae at Name Added Retirement Dahlgren, Mary 3/86 58 VanArtsdalen Mildred 5/86 71 Sleep, Grace J. 5/86 66 Wyllie, Lois M. 6/86 80 Pinkos, Mary 7/86 69 Christle, Berta 9/86 39 Thorton, Lillie 9/86 65 Estrada, Paula 10/86 68 Annual Type of Retirement Retirement Benefit Widow B $ 3,461.46 Widow A 2,839.68 Widow A 4,876.08 Widow B 2,869.80 Widow A 2,244.84 Widow A 2,769.48 Widow A 4,286.52 Widow A .2,334.12 Total $25,681.98 -19- CITY OF LANSING EMPLOYEES' RETIREMENT SYSTEM TERMINATIONS 1986 Date of Annual Termination Type of Retirement Name Death Retirement Benefit Miles, Donald 02/86 Regular -Term. $ 9,784.92 Perry, Agnes 03/86 Widow-B 1,254.36 Dahlgren, Nels 03/86 Option B 6,922.92 Wielden, Carolyn 04/86 Widow III 263.52 Sazani, Demetrios 04/86 Option I 4,008.24 Robbins, Retha 04/86 Regular -Term. 7,445.28 VanArtsdalen, William 05/86 Option A 2,839.68 Sleep, Voyle 05/86 Option A 4,876.08 Wyllie, George 06/86 Option B 5,739.60 Rasmussen, Martha 07/86 Widow III 417.72 Summers, James 07/86 Option B 2,650.08 Benef. deceased Pinkos, Francis 07/86 Option A 2,244.84 Boos, Louise 07/86 Regular -Term. 1,822.44 Wieland, Matt 08/86 Regular -Term. 3,234.84 Christle, Andrea 09/86 Option A 2,769.48 Buysee, Gustaaf 09/86 Regular -Term. 2,241.84 Thornton, Cecil C. 09/86 Option A 4,286.52 Estrada, Santana 10/86 Option A 2,334.12 Stiff, Ila 10/86 Widow II 198.24 Smith, R.J. 12/86 Regular -Term. 12,223.68 Total $77,558.40 -20-