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Home My WebLink About1986 Police and Fire Retirement System Annual ReportCITY OF LANSING, MICHIGAN POLICE AND FIRE RETIREMENT SYSTEM ANNUAL REPORT DECEMBER 31, 1986 FORTY-THIRD ANNUAL FINANCIAL REPORT OF THE POLICE AND FIRE RETIREMENT SYSTEM CITY OF LANSING, MICHIGAN YEAR ENDED DECEMBER 31, 1986 CITY OF LANSING POLICE AND FIRE 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 - 13 14 - 15 16 17 18 19 20 21 -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 Police and Fire Retirement System City of Lansing, Michigan 48933 Dear Trustees: Presented herewith is the Forty -Third Annual Report of the Secretary covering operations of the Police and Fire Retirement System for the year ended December 31, 1986. BALANCE SHEET Fixed income securities totaled $36,699,208 on December 31, an increase of $5,470,066 during the year. Of the $36,699,208 fixed income securities, $4,200,000 are rated "AAA", $6,374,000 are rated "AA", "AA1", "AA2", "AA3" and $5,069,000 are rated "Al", 11A2", "AT', $150,000 are rated "BAA1", $75,000 rated "BAA3", $2,000,000 are rated "B1" and $18,831,208 are government and agency bonds. These securities mature from May 15, 1987 to April 1, 2026 and have interest rates ranging from 4.375% to 15.5%. We hold $23,806,424 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 $1,578,497 during the year and accrued interest at December 31, 1986 increased by $46,906% In addition to the above fixed income securities, the Retirement System owned 623,400 shares of various common stocks at a cost of $23,494,126 and U.S. Treasury notes, repurchase agreements and trust demand notes totalling $11,642,981. The Reserve for Employee Contributions increased by $235,461 during the year under review. Active member accounts of 480 totaled $7,049,888, 2 deferred retirement of $29,954, 6 inactive accounts totaled $20,420 and 28 duty disability accounts totaled $386,320. The above 516 members represent 85,099 service credit months. According to our Actuary, the Reserve for Employer Contributions increased $1,808,601 and the Reserve for Benefit Payments increased $5,637,786 during the year, making a total increase of $7,446,387. -2- "Equal Opportunity Employer" Total reserved fund balance on December 31, 1986 was $94,784,260 with net assets of $69,736,912, leaving an unfunded accrued liability of $25,047,348, or a decrease of $1,043,561 during the year. This liability is being amortized over a 30 year period. REVENUES AND EXPENDITURES City contributions amounted to $3,900,000 during the year. Member contribu- tions during the year totaled $604,076 and refunds of member contributions (those leaving the system prior to retirement) totaled $16,953. For the year, the cost of investment services totaled $399,114. The interest and dividends on investments was $4,644,404 and the net gain on the exchange of securities was $3,949,768 for a total increase of 14% in the average book value of assets of $59,136,456. Market value of the assets was 6% above book value at December 31. During the year, $204,170 in interest was credited to the Reserve for Employee Contributions, $5,267,926 in interest and dividends was credited to the Reserve for Employer Contributions and $3,122,076 in interest was credited to the Reserve for Benefit Payments. Net benefits paid totaled $3,956,772. There were 319 retirees on the roll at December 31. Age and service retirees totaled 251, 49 were duty disability, 3 duty disability beneficiaries, 1 non -duty disability, 1 non -duty disability beneficiary, 6 were non -duty death beneficiaries and 8 duty death beneficiaries. Twenty -Three members retired• during the year having an average age of 52 years and an average service credit of 27 years. Annual pension benefits of these retirees will total $520,320, increasing annual pension benefits payable by the System to $4,109,254. Eight retirees died during the year with total annual benefits of $46,896. Three of the retirees that died during the year had beneficiaries and they will receive a total yearly benefit of $13,315. GENERAL COMMENTS The actuarial evaluation of December 31, 1986 indicates that the rate of contributions should be 27.29% of total valuation payroll for 1937. There is a total of $4,000,000 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 quarterly reports on investment performance and as a management tool for evaluating the results of investment policy decisions. -3- From December 31, 1984 through June 30, 1987 the Fund has earned an annualized total rate of return of 17.4%. Total investment performance exceeded the Fund s objective of CPI plus 4% by 10.4 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 -4- Respectfully submitted, James W. Dowsett Finance Director CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM BOARD OF TRUSTEES DECEMBER 31, 1986 Gary R. Powers, Fire, Chairperson John W. Fonger, Appointed Citizen, Vice Chairperson Terry J. McKane, Mayor Louis F. Adado, City Council Brian Kuchik, Treasurer 12-31-89 12-31-87 Indefinite Indefinite Indefinite Russell McKenzie, Police 12-31-87 John Hunnell, Police 12-31-90 John B. Cushman, Jr., Fire 12-31-91 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: Area Code: 517 483-4500 -5- CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM BALANCE SHEETS Assets Current assets: Cash on deposit Investments, at cost or amortized cost: Repurchase agreement Trust demand notes U.S. Government obligations and U.S. Government agencies market value $24,098,951 and $22,323,622 Bonds, market value $14,363,289 and $11,858,133 Common stocks, market value $25,625,575 and $28,449,794 Total investments Accounts receivable Accrued interest receivable Dividends receivable Total current assets Liabilities and Fund Balance Current liabilities: Warrants payable Accounts payable Total current liabilities Fund balance: Reserved for employee contributions Reserved for employer contributions Reserved for benefit payments Total reserved fund balance Unreserved fund balance (deficit) Total fund balance Total liabilities and fund balance MIS i December 31, 119 C67 1985 $ 23,547 $ 66,988 452,900 143,600 8,840,081 2,584,336 22,550,556 21,001,694 14,119,461 11,826,754 23,494,126 25,028,069 69,457,124 60,584,453 62,612 3,855 738,311 691,406 63,454 67,562 $70,345,048 $61,414,264 $ 366,484 $ 301,684 241,652 101,077 608,136 402,761 7,486,582 7,251,121 38,316,660 36,508,059 48,981,018 43,343,232 94,784,260 87,102,412 (25,047,348) (26,090,909) 69,736,912 61,011,503 $70,345,048 $61,414,264 CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE Year_ended December 31, 1986 — — — — — 1985 _ Operating revenues: Contributions by employees $ 604,076 $ 595,531 Contri.butions by City 3,900,000 3,700,000 Total contributions 4,504,076 4,295,531 Income from investments: Interest and dividends 4,644,404 4,597,954 Gain (loss) on sale of investments 3,949,768 (349,963) Total investment income 8,594,172 4,247,991 Total operating revenues 13,098,248 8,543,522 Operating expenses: Investment services 399,114 332,921 Payment to -pensioners & beneficiaries 3,956,772 3,515,696 Contributions refunded to former employees 16,953 80,606 Total operating expenses 4,372,839 3,929,223 Net income 8,725,409 4,614,299 Fund balance, at beginning of year 61,011,503 56,397,204 Fund balance, at end of year $69,736,912 $61,011,503 -7- CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM STATEMENTS OF CHANGES IN FINANCIAL POSITION Sources 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, - - -------- --- Q-- iQRti 1RS $8,725,409 $4,614,299 (43,441) (233,060) 8,872,671 4,729,054 58,757 (42,595) 46,905 (290,757) (4,108) 49,300 (64,800) (28,895) (140,575) 431,252 $8,725,409 $4,614,299 -8- I CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM CHANGES IN FUND BALANCE RESERVE Fund Balance Reserved for Employee Contributions Fund Balance Reserved for Employer Contributions Balance, January 1, 1986 $7,251,121 $36,508,059 Additions: Contributions by employees 604,076 Contributions by City 3,900,000 Income from investments 204,170 5,267,926 Total balance & additions 8,059,367 45,675,985 Transfers on retirement (555,832) (5,916,650) Actuarial adjustment in unfunded accrued liability (1,043,561) Total revised balances 7,503,535 38,715,774 Deductions: Investment services 399,114 Payment to pensioners & beneficiaries Contributions refunded to former employees 16,953 Total deductions 16,953 399,114 Balance, December 31, 1986 $7,486,582 $38,316,660 Fund Balance 1986 Total Reserved for Reserved Benefit Fund Payments Balance $43,343,232 $87,102,412 3,122,076 46,465,308 6,472,482 604,076 3,900,000 8,594,172 100,200,660 (1,043,561) 52,937,790 99,157,099 3,956,772 3,956,772 $48,981,018 399,114 3,956,772 16,953 4,372,839 $94,784,260 1985 Total Reserved Fund $80,162,545 595,531 3,700,000 4,247,991 88,706,067 2,325,568 91,031,635 332,921 3,515,696 3,929,223 $87,102,412 i 0 i POLICE & FIRE RETIREMENT SYSTEM SECURITIES (EXCEPT COMMON STOCK) DECEMBER 31, 1986 NOMINAL PAR MARKET SECURITY MATURITY RATE VALUE COST VALUE ------------------------------------------------------------------------------------------------------- DEMAND NBD BANKS SHORT TERM INVESTMENT MANUFACTURERS (B.O.L. REPO) TOTAL DEMAND U.S. GOVERNMENTS USA TREASURY NOTES SER. E COUPON TREASURY RECEIPTS TREASURY INVESTMENT GROWTH RECEIPTS USA TREASURY NOTE USA TREASURY NOTES SER. D USA TREASURY BOND USA TREASURY BONDS USA TREASURY SECURITIES USA TREASURY BOND TOTAL U.S. GOVERNMENTS AGENCIES FEDERAL HOME LOAN BANKS SER. J FEDERAL HOME LOAN BANKS SER. E FEDERAL FARM CREDIT BANKS SER D FEDERAL FARM CREDIT BANKS SER C FEDERAL HOME LOAN BANK FEDERAL FARM CREDIT BANKS 12-31-86 8.397% $8,840,081 $8,840,081 $8,840,081 12-31-86 8.300% $452,900 $452,900 $452,900 $9,292,981 $9,292,981 $9,292,981 05-15-87 14.000% $300,000 $300,000 $309,048 02-15-91 12.000% $1,200,000 $800,771 $892,752 11-15-91 $801,500 $533,935 $565,066 04-15-93. 7.375% $1,000,000 $986,551 $1,014,060 11-15-93 11.750% $1,050,000 $1,297,672 $1,302,651 02-15-03 `-10.750% $200,000 $185,958 $251,750 08-15-05 '16.750% $750,000 $936,926 $951,563 08-15-06 $1,000,000 $187,787 $203,590 05-15-16 7.250% $200,000 $194,764 $191,000 $6,501,500 $5,424,364 $5,681,479 02-27-89 10.800% $900,000 $899,522 $976,500 03-26-90 11.900% $900,000 $928,651 $1,029,933 09-04-90 12.500% $600,000 $625,868 $699,372 07-22-91 14.700% $1,000,000 $986,086 $1,278,120 12-27-93 7.375% $1,500,000 $1,501,172 $1,494,840 09-01-94 13.000% $500,000 $538,960 $646,560 NOMINAL PAR MARKET SECURITY MATURITY RATE VALUE COST VALUE ------------------------------------------------------------------------------------------------------- FEDERAL NATIONAL MORTGAGE ASSN. 08-12-96 8.150% $1,000,000 $1,013,627 $1,026,250 FEDERAL HOME LOAN MORTGAGE CORP. 10-01-96 8.650% $1,500,000 $1,496,110 $1,559,055 INTERNATIONAL BK FOR RECON & DEVEL 10-15-02 12.375% $600,000 $624,046 $786,378 FEDERAL HOUSING ADMIN POOL #48 06-01-22 7.430% $456,979 $401,570 $374,152 TOTAL AGENCIES $8,956,979 $9,015,612 $9,871,160 PASSTHROUGHS GNMA 01-15-95 10.250% $282,423 $264,073 $293,720 GNMA 03-15-95 10.250% $292,963 $273,929 $304,681 GNMA 03-15-95 10.250% $267,380 $250,008 $278,075 GNMA 02-15-98 11.250% $323,091 $333,195 $345,707 GNMA 02-15-98 11.750% $133,712 $137,897 $143,071 GNMA 02-15-98 11.750% $77,274 $79,691 $82,683 GNMA 07-15-01 9.000% $295,901 $291,648 $300,710 GNMA 12-15-03 8.000% $503,387 $482,622 $494,578 GNMA 10-15-05 8.000% $374,430 $358,985 $367,877 GNMA 10-15-06 8.000% $595,346 $570,788 $584,927 GNMA 05-15-08 8.250% $454,249 $425,006 $449,706 FHLM 07-01-09 4.250% $417,685 $322,230 $383,226 GNMA 07-15-09 9.500% $424,703 $413,289 $442,222 GNMA 08-15-09 9.500% $481,676 $471,440 $501,545 GNMA 01-15-10 11.000% $629,918 $642,517 $678,737 GNMA 05-15-15 12.000% $855,972 $887,009 $925,519 GNMA 07-15-16 9.000% $1,458,941 $1,438,881 $1,482,649 GNMA 08-15-16 9.000% $478,895 $467,372 $486,677 TOTAL PASSTHROUGHS $8,347,945 $8,110,580 $8,546,312 NOMINAL PAR MARKET SECURITY ------------------------------------------------------------------------------------------------------- MATURITY RATE VALUE COST VALUE MUNICIPALS ALASKA HOUSING FINANCE CORP. 06-01-93 10.750% $377,000 $377,697 $377,328 ADAMS CO. COLO 11-01-96 9.000% $500,000 $503,717 $502,350 TOTAL MUNICIPALS $877,000 $881,414 $879,678 FINANCE ASSOCIATES CORP N.A. 02-01-89 11.850% $500,000 $522,804 $541,345 E.F. HUTTON CREDIT CORP. 09-15-89 12.900% $400,000 $400,000 $405,968 GENERAL MOTORS ACCEPTANCE CORP. 10-15-89 7.125% $500,000 $500,000 $502,260 AMERICAN EXPRESS CREDIT CORP 07-01-90 10.100% $300,000 $300,000 $302,877 SPERRY LEASE FINANCE CORP. 04-15-91 11.000% $324,784 $335,238 $339,464 FORD MOTOR CREDIT CORP. 07-07-93 FLOATING $500,000 $499,935 $499,375 ASSOCIATES CORP. N.A. 08-15-94 12.750% $600,000 $709,977 $728,910 FORD MOTOR CREDIT CORP. 06-01-95 11.000% $1,000,000 $1,041,410 $1,102,200 GENERAL MOTORS ACCEPTANCE CORP. 03-01-96 8.875% $700,000 $713,640 $722,904 AMERICAN EXPRESS CREDIT CORP. 12-01-96 7.875% $500,000 $497,025 $498,100 FIRST FEDERAL SAV & LOAN ASSN. AZ 11-01-00 ZERO COUP $1,000,000 $271,598 $271,450 FIRST FEDERAL SAV & LOAN ASSN. AZ 11-01-06 ZERO COUP $1,000,000 $161,843 $154,210 TOTAL FINANCE $7,324,784 $5,953,470 $6,069,063 INDUSTRIAL PHILLIP MORRIS COMPANIES INC. 12-15-95 9.700% $700,000 $750,250 $759,465 USG CORP. 12-15-96 8.000% $800,000 $796,800 $789,024 RJR NABISCO INC. 08-01-97 11.200% $500,000 $536,079 $542,480 TOTAL INDUSTRIAL $2,000,000 $2,083,129 $2,090,969 PUBLIC UTILITY GEORGIA POWER CO. 06-01-87 5.250% $75,000 $75,084 $74,628 HOUSTON LIGHTING & POWER CO. 11-01-87 4.750% $100,000 $100,052 $98,457 NEW JERSEY POWER & LIGHT CO. 07-01-90 4.875% $25,000 $25,137 $23,094 NOMINAL PAR MARKET SECURITY MATURITY RATE VALUE COST VALUE ----------------------------------------------------------------------------------- GEORGIA POWER CO. 11-01-90 4.875% $50,000 $48,845 $46,341 GENERAL TELEPHONE & ELECTRONICS CORP. 12-01-91 15.500% $600,000 $674,600 $682,812 PENNSYLVANIA POWER CO. 09-01-92 4.375% $75,000 $73,475 $63,761 MICHIGAN BELL TELEPHONE CO. 11-01-92 4.750% $147,000 $143,155 $129,855 PUGET SOUND POWER & LIGHT CO. 11-01-93 4.625% $20,000 $20,000 $16,183 ROCHESTER GAS & ELECTRIC CORP. 09-15-94 4.625% $120,000 $119,769 $99,554 NEW ENGLAND POWER CO. 10-01-97 6.875% $100,000 $99,376 $83,697 COMMONWEALTH EDISON CO, 08-15-16 9.625% $600,000 $616,274 $614,958 NEW ENGLAND TELEPHONE & TELEGRAPH CO. 03-01-26 9.000% $400,000 $401,478 $405,476 PACIFIC BELL 03-01-26 9.250% $600,000 $609,318 $617,166 MOUNTAIN STATE TELEPHONE & TELG CO. 04-01-26 9.000% $900,000 $897,788 $914,292 TOTAL PUBLIC UTILITY $3,812,000 $3,904,351 $3,870,274 REAL ESTATE i GIBRALTAR SAVINGS & LOAN ASSN 08-01-89 9.500% $100,000 $100,000 $104,679 w VALLEY FED SAV & LOAN VAN NUYS CA 06-15-90 11.000% $250,000 $242,845 $255,823 TOTAL REAL ESTATE $350,000 $342,845 $360,502 TRANSPORTATION BALTIMORE & OHIO RAILROAD CO. 10-01-89 8.500% $100,000 $100,953 $103,403 UNION TANK CAR CO. 07-01-90 9.875% $29,000 $29,274 $29,506 MISSOURI PACIFIC RAILROAD CO. 09-15-93 15.500% $450,000 $525,415 $622,251 LOUISVILLE & NASHVILLE RAILROAD CO. 09-01-94 10.500% $300,000 $298,610 $337,644 TOTAL TRANSPORTATION $879,000 $954,252 $1,092,804 TOTAL BONDS $48,342,189 $45,962,998 $47,755,221 POLICE AND FIRE RETIREMENT COMMON STOCK DECEMBER 31, 1986 NUMBER OF MARKET STOCK SHARES COST VALUE --------------------------------------------------------------------------- ALZA CORP 16,000 $248,000 $298,000 AMERICAN INTERNATIONAL GROUP INC 4,800 282,799 293,400 AMERICAN STANDARD INC 7,000 283,959 300,125 AMOCO CORP 6,000 405,341 391,500 BEVERLY INVT PPTYS INC 1,000 26,039 25,250 BOB EVANS FARMS INC 8,000 170,250 146,000 BOEING CO 3,000 142,799 153,375 BRISTOL MYERS CO 4,600 391,262 380,075 CALMAT CO 12,500 396,228 507,813 CAPITAL CITIES/ABC INC 2,000 534,619 536,250 CAROLINA POWER & LIGHT CO 8,200 300,156 316,725 CBS INC 3,500 470,488 444,500 CENTRAL ILLINOIS PUBLIC SERVICE CO 15,000 449,275 420,000 COMPUTER ASSOC INTL INC 5,100 116,391 140,250 CONSOLIDATED STORES CORP 13,200 231,924 178,200 CRAY RESEARCH INC 6,900 445,712 558,038 DE LUXE CHECK PRINTERS INC 12,000 375,874 423,000 DIGITAL EQUIPMENT CORP 4,600 283,500 481,850 DIME SAVINGS BANK NY 20,000 356,000 362,500 DONNELLEY R.R.& SONS CO 2,100 96,699 128,625 DU PONT E I DE NEMOURS & CO INC 5,000 360,254 420,000 DUN AND BRADSTREET CORP 8,200 780,795 863,050 GANNETT COMPANY INC 11,200 750,130 807,800 GENERAL CINEMA CORP 6,000 279,716 265,500 GENERAL ELECTRIC CO 5,000 396,155 430,000 GENERAL RE CORP 4,800 291,889 266,400 GENETICS INST INC 15,000 419,250 273,750 GOODYEAR TIRE & RUBBER CO 11,000 317,288 460,625 GTE CORP 12,000 486,750 700,500 HANDLEMAN CO 10,900 397,798 310,650 HARRIS CORP DEL 15,000 455,360 446,250 HEALTH CARE PROPERTY INVESTORS INC 15,000 373,125 436,875 IBM 2,000 251,930 240,000 INFORMATION RESOURCES INC 20,000 406,250 390,000 INSILCO CORP 21,000 424,716 417,375 -14- POLICE AND FIRE RETIREMENT COMMON STOCK DECEMBER 31, 1986 NUMBER OF MARKET STOCK SHARES COST VALUE --------------------------------------------------------------------------- ITT CORP 8,400 462,249 448,350 JOHNSON & JOHNSON 6,800 461,400 446,250 JWT GROUP INC 3,900 155,398 116,025 KANSAS CITY SOUTHERN INDUSTRIES INC 6,500 310,840 307,125 KANSAS POWER & LIGHT CO 8,000 435,350 435,000 LOTUS DEVELOPMENT CORP 3,000 93,201 155,250 MARRIOTT CORP 12,000 180,540 348,000 MASCO CORP 15,000 397,700 435,000 MCDONALD CORP 5,000 211,436 304,375 MELVILLE CORP 5,000 357,950 270,000 MERCK & COMPANY INC 5,500 502,064 681,313 MONSANTO CO 6,000 315,540 459,000 MORRISON KNUDSEN CORP 1,600 68,528 67,600 NEW YORK TIMES CO 10,800 192,348 383,400 OGILVY GROUP INC 6,600 212,714 196,350 OLD REP INTL CORP 14,000 503,560 383,250 PENNWALT CORP 10,000 511,050 497,500 PENNZOIL CO 6,300 463,697 422,100 PHARMACIA A B 23,000 569,559 508,875 PIC N SAVE CORP 12,200 213,458 257,725 PUGET SOUND POWER & LIGHT CO 12,600 297,983 263,025 PURITAN-BENNETT CORP 18,000 422,395 531,000 ROYAL DUTCH PETROLEUM CO 6,000 384,540 573,000 RYLAND GROUP 11,400 235,913 226,575 SCANA CORP 7,500 295,159 274,688 SCHLUMBERGER LIMITED 7,200 234,504 228,600 SEAMAN FURNITURE CO 10,000 389,082 420,000 SHELBY WILLIAMS INDUSTRIES INC 25,000 404,725 425,000 SQUIBB CORP 6,400 516,340 729,600 STOP AND SHOP COS 6,000 312,360 306,000 WALT DISNEY CO 6,200 328,595 267,375 WAL-MART STORES INC 6,900 190,233 320,850 WASTE MANAGEMENT INC 13,000 464,999 723,125 TOTAL $23,494,126 $25,625,575 -15- CITY OF LANSING POLICE & FIRE RETIREMENT SYSTEM INVESTMENT PORTFOLIO ANALYSIS DECEMBER 31, 1986 Par Value Percentage ------------ ---------- Repurchase Agreement $9,292,981 12.94% U.S. Treasury Notes 2,350,000 3.27% Bonds: Moody's "AAA" rated 4,200,000 5.85% Moody's "AA1" rated 1,747,000 2.43% Moody's "AA2" rated 1,550,000 2.16% Moody's "AA3" rated 2,700,000 3.76% Moody's "AA" rated 377,000 0.52% Moody's "Al" rated 2,300,000 3.20% Moody's "A2" rated 1,400,000 1.95% Moody's "A3" rated 1,369,000 1.91% Moody's "BAA1" rated 150,000 0.21% Moody's "BAA3" rated 75,000 0.10% Moody's "Bl" rated 2,000,000 2.78% Not rated (U.S. Government & Agencies) 18,831,208 ------------ 26.21% Total bonds 36,699,208 51.09% Common Stocks at cost 23,494,126 ------------ 32.71% ---------- Total investments Cash equivalents Demand obligations Bonds: U.S. Governments Agencies Passthroughs Municipals Finance Industrials Public Utility Real Estate Transportation Total CLASSIFICATION OF BONDS ------------------------------- $71,836,315 100.00% $9,292,981 19.22% 6,501,500 13.45% 8,956,979 18.53% 8,347,945 17.27% 877,000 1.81% 7,324,784 15.15% 2,000,000 4.14% 3,812,000 7.89% 350,000 0.72% 879,000 ------------ 1.82% $48,342,189 100.00% -16- r �f CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM STATEMENT OF MEMBERSHIP DECEMBER 31, 1986 Membership - December 31, 1985 511 Add: New members during year 31 Total 542 Deduct: Members retired 23 Resigned and contributions refunded 3 26 Membership - December 31, 1986 516 Summary of Membership Number Annuity Savings Service Credit Months Active Members 480 $7,049,888 771709 Deferred 2 29,954 340 Duty Disability 28 386,320 6,819 Inactive 5 20,420 231 Totals 516 $7,486,582 85,099 -17- CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM RETIRANTS AND BENEFICIARIES DECEMBER 31, 1986 Annual Benefits Type of Benefits Being Paid: Number Being Paid Age and Service Benefits: Regular service - benefit terminating at death of retirant 14 $ 101,932 Regular service - potential 50% survivorship benefit to widow 193 2,946,105 Option I benefit - 100% joint and survivor 4 19,632 Option II benefit - 50% joint and survivor 10 60,767 Beneficiaries 30 128,478 Total age and service benefits 251 $3,256,914 Casualty Benefits: Duty disability 49 $ 750,589 Duty disability beneficiaries 3 19,730 Non -duty disability 1 13,196 Non -duty disability beneficiaries 1 741 Duty death beneficiaries 8 36,660 Non -duty death beneficiaries 6 31,424 Total casualty benefits 68 852,340 Total benefits 319 $4,109,254 -18- CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM MEMBERS RETIRED DURING 1986 Annual Date of Age at Service Type of Retirement Name Retirement Retirement Yrs. Mos. Retirement Benefit Burt, Rex H. 1-86 49 25 0 Regular $ 18,975.60 Renfrew, William 1-86 54 28 5 Regular 18,567.48 Powers, Maurice 1-86 56 32 0 Regular 23,538.24 Miller, Richard 1-86 59 35 2 Regular 27,932.88 Case, Rolland 1-86 55 32 7 Regular 24,083.52 Conn, Arnold 1-86 49 25 0 Regular 18,293.04 Crandall, James 1-86 50 25 0 Regular 19,862.40 Labioda, Lenard 1-86 61 35 8 Regular 27,054.48 Ruby, Irvin 2-86 50 25 1 Regular 20,161.44 Leadbitter, Robert 3-86 53 25 1 Regular 19,470.12 Loepke, Peter K. 3-86 45 18 5 Duty Dis. 21,314.04 Woodard, Robert 3-86 47 25' 3 Regular 22,554.60 Vincent, George 4-86 52 26 7 Regular 20,776.68 Zerkle, Charles 4-86 59 35 3 Regular 28,643.88 Zerfas, Ronald 5-86 50 25 9 Regular 20,894.40 Campbell, Martin 7-86 52 25 0 Regular 23,000.16 Fuller, Stephen 7-86 42 16 11 Duty Dis. 19,352.64 Malantinsky, Stephen 7-36 57 33 8 Regular 28,395.48 Hodges, Robert 8-86 54 27 3 Regular 24,904.44 McKenzie, Lowell 8-86 52 25 1 Regular 21,837.48 Holliday, Russell 8-86 53 30 8 Duty Dis. 26,046.48 Tycocki, James 10-86 42 20 1 Duty Dis. 21,381.36 Rinckey, Carl 11-86 51 27 2 Duty Dis. 23,279.04 Total $520,319.88 -19- CITY OF LANSING POLICE AND FIRE RETIREMENT BENEFICIARIES ADDED TO ROLL 1986 Date Age at Name Added Retirement Stevens, Dorothy 1-86 65 King, Rosaleen 5-86 72 Bullock, Gwendolyn 6-86 73 Annual Type of Retirement Widow Benefits $ 6,577.32 Widow Benefits 3,569.88 Widow Benefits 3,168.00 Total $13,315.20 -20- CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM TERMINATIONS 1986 Annual Date of Type of Retirement Name Termination Reason Retirement Benefit Metz, Robert 1-86 Death Regular/Term. $ 5,000.04 Stevens, Keith 1-86 Death Regular 13,154.64 Boyles, Claud 1-86 Death Regular/Term. 5,000.04 Ketcheson, Virginia 3-86 Death Beneficiary 2,572.80 King, Raymond 5-86 Death Regular 7,139.76 Scarvarda, Anna 5-86 Death Beneficiary 2,563.68 Bullock, Raymond 6-86 Death Regular 6,336.00 Patterson, Frances 11-86 Death Beneficiary 5,128.80 Total $46,395.76 -21-