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Home My WebLink About1988 Police and Fire Retirement System Annual ReportCITY OF LANSING, MICHIGAN Document: 1988 Police and Fire Retirement System Annual Report -,q 1ito h6L POLICE AND FIRE RETIREMENT SYSTEM ANNUAL REPORT DECEMBER 3111988 Forty -Fifth Annual Financial Report of the Police and Fire Retirement System City of Lansing, Michigan Year Ended December 31, 1988 City of Lansing Police and Fire Retirement System Annual Financial Report Year Ended December 31, 1988 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 1988 Beneficiaries Added to Roll 1988 Terminations 1988 Page 1 2-4 5 6 7 8 9 10-11 12-13 14 15 16 17 18 19 -1- Terry J. McKane, Mayor Board of Trustees Police and Fire Retirement System City of Lansing, Michigan 48933 Dear Trustees: FINANCE DEPARTMENT Stephen W. Duarte, MBA • Director of Finance 831 City Hall, 124 W. Michigan Ave. Lansing, Michigan 48933 (517)483-4505 July 15, 1989* Presented herewith is the Forty -Fifth Annual Report of the Secretary covering operations of the Police and Fire Retirement System for the year ended December 31, 1988. BALANCE SHEET Fixed income securities totaled $32,051,594 on December 31, a decrease of $1,154,318 during the year. Of the $32,051,594 fixed income securities, $3,069,000 are rated "AAA", $1,747,000 are rated "AA", $4,128,000 are rated "A", $3,430,000 are rated "BBB", and $19,677,594 are government and agency bonds. These securities mature from August 1, 1989 to April 20,. 2018 and have interest rates ranging from 4.25% to 13.4%. We hold. $30,129,654 of government and agency bonds, and the balance in public utilities, industrial, transportation, finance, municipals and real estate bonds. The net unamortized premium and discount increased by $753,554 during the year and accrued interest at December 31, 1988 decreased by $33,016. In addition to the above fixed income securities, the Retirement System owned 936,600 shares of various common stocks at a cost of $34,459,626 and U.S. Treasury notes, repurchase agreements and trust demand notes totalling $19,131,927. The Reserve for Employee Contributions increased. by $428,207 during the year under review. Active member accounts of 472 totaled $7,835,337, 4 deferred retirement of $78,904, 5 inactive accounts totaled $926 and 25 duty disability accounts totaled $371,307. The above 506 members represent 84,933 service credit months. According to our Actuary, the Reserve for Employer Contributions increased $177,186 and the Reserve for Benefit Payments increased $4,260,844 during the year, making a total increase of $4,438,030. Total reserved fund balance on December 31, 1988 was $119,997,945 with net assets of $83,455*,235, leaving an unfunded accrued liability of $36,542,710, or an increase of $1,469,475'during the year. -2- "Equal Opportunity Employer" REVENUES AND EXPENDITURES City contributions amounted to $3,958,431 during the year. Member contri- butions during the year totaled $687,941 and refunds of member contributions (those leaving the system prior to retirement) totaled $23,228. For the year, the cost of investment services totaled $388,190. The interest and dividends on investments was $5,088,625 and the net loss on the exchange of securities was $1,094,103 for a total increase of 5.0% in the average book value of assets of $79,759,593. Market value of the assets was .4% below book value at December 31. During the year, $224,987 in interest was credited to the Reserve for Employee Contributions, $55,866 in interest and dividends was credited to the Reserve for Employer Contributions and $3,713,669 in interest was credited to the Reserve for Benefit Payments. Net benefits paid totaled $4,832,714. There were 347 retirees on the roll at December 31. Age and service.retirees totaled 277, 51 were duty disability, 4 duty disability beneficiaries, 1 non -duty disability, 1 non -duty disability beneficiary, 8 were duty death beneficiaries and 6 non -duty death beneficiaries. Nineteen members retired during the year having an average age of 51 years and an average service credit of 27 years. Annual pension benefits of these retirees will total $480,135, increasing annual pension benefits payable by the System to $4,984,746. Seven retirees died during the year with total annual benefits of $40,226. Two of the retirees that died during the year had beneficiaries and they will receive a total yearly benefit of $10,937. GENERAL COMMENTS The actuarial evaluation at December 31, 1988 indicates that the rate of contributions should be 26.9% of total valuation payroll. There are budgeted funds included in the 1989-90 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 and 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 December 31, 1988, the Fund has earned an annualized total rate of return of 15.44%. Total investment performance exceeded the Fund's objective of CPI plus 4% by 2.17 percentage points. The Actuarial Valuation Report concludes that the Retirement Sytem 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, Stephen W. Duarte Director of Finance -4- City of Lansing Police and Fire Retirement.System Board of Trustees December 31, 1988 John B. Cushman, Jr., Chairperson 12-31-91 John M. Hunnel, Police, Vice Chairperson 12-31-90 Terry J. McKane, Mayor Indefinite Louis F. Adado, City Council Indefinite Brian Kuchik, City Treasurer Indefinite Russell McKenzie, Police 12-31-92 William E. Barkyoumb, Appointed Citizen 12-31-92 Gary M. Burnett, Fire 12-31-89 Secretary.:......................................Stephen W. Duarte LegalAdvisor........................................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- Assets Cash on deposit City of Lansing Police and Fire Retirement System Balance Sheets Investments, at cost or amortized cost: Repurchase agreement Trust demand notes U.S. Government obligations and U.S. Government agencies, market value $25,683,896 and $13,869,979 Other marketable securities, market value $15,981,703 and $22,069,529 Common stocks, market value $35,261,950 and $28,286,188 Total investments Accrued interest receivable Dividends receivable Total assets Liabilities and Fund Balance Liabilities: Warrants payable Accounts payable Total liabilities Fund balance: Reserved for employee contributions Reserved for employer contributions Reserved for benefit payments Total reserved fund balance Unreserved (deficit) Total fund balance Total liabilities and fund balance December 31, 1988 1987 $ 414,779 $ 63,243 2,910,962 1,667,356 2,810,965 9,066,004 26,320,272 14,072,891 16,487,173 22,978,426 34,459,626 31,839,855 82,988,998 79,624,532 759,902 792,918 100,489 94,467 $84,264,168 $80,575,160 $ 414,756 $ 380,507 394,177 136,180 808,933 516,687 8,286,474 7,858,267 54,813,026 54,635,840 56,898,445 52,637,601 119,997,945 115,131,708 (36,542,710) (35,073,235) 83,455,235 80,058,473 $84,264,168 $80,575,160 City of Lansing Police and Fire Retirement System Statements of Revenues, Expenses and Changes in Fund.Balance Operating revenues: Contributions by employees Contributions by City Total contributions Income from investments: Interest and dividends Gain (loss) on sale of investments Total investment income Total operating revenues Operating expenses: Investment services Payment to pensioners & beneficiaries Contributions refunded to former employees Total operating expenses Net income Fund balance, at beginning of year Fund balance, at end of year Year ended December 31, 1988 1987 $ 687,941 $ 662,237 3,958,431 3,600,590 4,646,372 4,262,827 5,088,625 4,726,519 (1,094,103) 6,215,947 3,994,522 10,942,466 8,640,894 15,205,293 388,190 416,033 4,832,714 4,434,005 23,228 33,694 5,244,132 4,883,732 3,396,762 10,321,561 80,058,473 69,736,912 $83,455,235 $80,058,473 -7- City of Lansing Police and Fire Retirement System Statements of Changes in Financial Position Sources of funds: Operations - net income Changes in components: Increase (decrease)' in assets: Cash on deposit Investments Accounts receivable Accrued interest receivable Dividends receivable Decrease (increase) in liabilities: Warrants payable Accounts payable Increase in funds: Year ended December 31, 1988 1987 $ 3,396,762 $10,321,561 351,536 3,364,466 (33,016) 6,022 39,696 10,167,408 (62,612) 54,607 31,013 (34,249) (14,023) (257,997) 105,472 $ 3,396,762 $10,321,561 Balance, January 1, 1988 Additions: Contributions by employees Contributions by City - Income from investments Total balance & additions Transfers on retirement Actuarial adjustment in unfunded accrued liability Total revised balances Deductions: Investment services Payment to pensioners & beneficiaries Contributions refunded to former employee Total deductions Balance, December 31, 1988 City of Lansing Police and Fire Retirement System Changes in Fund Balance Reserve Fund Balance Fund Balance Fund Balance 1988'Total Reserved for Reserved for Reserved for Reserved Employee Employer Benefit Fund Contributions Contributions Payments Balance $•7,858,267 $54,635,840 $52,637,601 $115,131,708 687,941 3,958,431 224,987 55,866 8,771,195 58,650,137 (461,493) (4,918,396) 1,469,475 8,309,702 55,201,216 388,190 23,228 23,228 $8,286,474 $54,813,026 3,713,669 56,351,270 5,379,889 687,941 3,958,431 3,994,522 123,772,602 1,469,475 61,731,159 125,242,077 1987 Total Reserved Fund $94,784,260 662,237 3,600,590 10,942,466 109,989,553 10,025,887 120,015,440 388,190 416,033 4,832,714 4,832,714 4,434,005 23,228 33,694 5,244,132 4,883,732 $56,898,445 $119,997,945 $115,131,708 POLICE & FIRE RETIREMENT SYSTEM SECURITIES (EXCEPT COMMON STOCK) DECEMBER 31, 1968 NOMINAL PAR MARKET SECURITY -----------------------------------------------__------------------------------------------------------ MATURITY RATE VALUE • COST VALUE BEPIRNO NOD BANKS SHORT TERN INVESTMENT .12-31-88 8.717% $2,810,965 $2,810,965 $2,010,965 KRNUFRCTURERS'(B.O.L. REPO) 12-31=88 9.350% 2,910,962 - 2,910,962 2,910,962 TOTAL DEMAND 5,721,927 5,721,927 5,721,927 U.S. GOVERNMENTS USA TREASURY NOTES SER 0 09-30-90 6.750% 750,000 721,172 720,937- USA TREASURY NOTE 01-15-94 7.000% 23125OZ000 2,150,622 2,051,707 USA TREASURY NOTES SER C 11-15-94 11.625% 3,710,000 4,296,371 4,106,480 USA TREASURY NOTES SER C 05-15-96 7.375% 2,500,000 2,294,020 2,255,475 STRIPS 11-15-97 0.000% 2,899,000 1,319,709 1,301,680 USA TREASURY NOTE 02-15-90 0.125% 4,200,000 3,949,140 3,929,604 STRIPS 11-15-00 0.000% 1,000,000 .359,978 345,160 STRIPS 02-15-07 0.000% 1,000,000 237,454 202,600 USA TREASURY BONDS 11-15-10 12.750% 1,500,000 ' 1,995,600 1,949,535 TOTAL U.S. GOVERNMENTS ' 19,809,000 17,324,066 16•,863,186 AGENCIES STUDENT LOAN MARKETING ASSOC 02-20-90 FLOATING 4,000,000 4-000,000 3,980,000 ►� FEDERAL NATIONAL MORTGAGE RSS14 12-10-90 8.400% 1,DOD,000 1,000,599 983,750 FEDERAL NATIONAL MORTGAGE ASSN 03-10-92 7.000% 1,000,000 956,711 936,250 STUDENT LOAN MARKETING ASSOC 07-12-93 R-OATING 400,000 400,000 398,000 FEDERAL HOME LOAN BANKS SER. 14 09-27-93 7.950% 1,000,000 1,024,922 943,750 FEDERAL NATIONAL MORTGAGE ASSN. 08-12-96 8.1507 1,000,000 1,010,783 932,190 STUDENT LOAN MARKETING ASSOC 11-15-09 7.750% 300,000 603,191 646,770 TOTAL AGENCIES 0,700,000 0,996,206 8,820,710 PASSTHROUGHS GNMA 12-15-03 8.0007 447,530 429,070 391,307 GNMA 11-15-05 0.000% 285,312 273,543 249,469 GNMA 10-15-06 8.0007 324,597 311,207 203,010 GNMR 05-15-08 0.250% 302,334 357,721 351,624 FHLM 07-01-09 4.250% 100,236 143,741 158,600 GNMA 01-15-10 11.000% 645 658 665 TOTAL PRSSTHROUGHS 1,620,654 1,515,940 1,435,491' MUNICIPALS ALASKA HOUSING FINANCE CORP. 06-01-93 10.750% 219,000 219,271B 217,228 LOUISIANA HOUSING FINANCE AGENCY REV 08-01-96 8.610% 1,000,000 908,261 917,940 MEMPHIS HEALTH EDL & HSG BRD RU 9-15-96 8.680% 750,000 748,497 692,033 LOUISIANA AGRICULRTURAL FIN RUTH REV 10-01-96 8.800% 500,000 503,639 562,115 ADAMS CO. COLO 11-01-96 9.000% 750,000 756,508 715,075 TOTAL MUNICIPALS .3,219,000 3,136,183 3,105,191 SECURITY ----------------------------------- FINANCE CHRYSLER FINANCIAL CORPORATION CHRYSLER FINANCIAL CORPORATION) GIBRALTAR SAVINGS & LOAN ASSN MARINE MIDLAND BANKS INC FIRST FIDELITY BANCORPORATION BARNETT BANKS FLORIDA INC GUARANTEED MORTGAGE CORP III CHRYSLER FINANCIAL CORPORATION DREXEL BURHAM LAMBERT TOTAL•FIHANCE INDUSTRIAL RJR NABISCO INC PHILIP NORRIS OCCIDENTAL PETROLEUM CORP OF CALIF TOTAL INDUSTRIAL PUBLIC UTILITY NEW JERSEY POWER & LIGHT CO. GEORGIA POWER CO. PENNSYLVANIA POWER CO. HICHIGAN BELL TELEPHONE CO. PUGET SOUND POWER & LIGHT CO. ROCHESTER GAS & ELECTRIC CORP. NEW ENGLAND POWER CO. DUKE POWER CO. TOTAL PUBLIC UTILITY REAL ESTATE GIBRALTAR SAVINGS & LOAN ASSN FIDELITY FEDERAL SAV & LN ASSN TOTAL REAL t:STRTE TRANSPORTATION BALTIMORE & OHIO RAILROAD CO. UNION TANK CAR CO. TOTAL TRANSPORTATION TOTAL BONDS POLICE & FIRE RETIREMENT SYSTEM SECURITIES (EXCEPT COMMON STOCK.) DECEMBER 31, 1908 NOMINAL PAR MARKET MATURITY ----------------------------------------------------------------- RATE VALUE COST VALUE 09-15-89 13.400% $360,p00 $360,000 $373,050 07-15-90 6.375% 1,000,000 992,365 . 976,900 . 07-2�-91 8.875% 500,000 500,000 490,130 03-01-97 8.625% 1,000,000 979,901 905,020 04-01-98 8.500% 1,000,000 934,354 094,530 03-01-99 8.500% 250,000 253,599 224,300 04-01-D3 0.500% 707,940 705,653 679,622 08-01-08 ADJ. 900,000 094,15B 874,116 04-20-18 8.950% 1,000,000 901,978 960,000 6#717,940 6,602,008 6,300,620 11-15-92 8.'875% 1,000,000 907,066 934,400 12-15-98 9.800% 900,000 005,024 075,250 03-15-11 '' 11.750% 900,000 933,439 933,660 211800',000 2,805,529 2,743,390 07-01-90 41875% . 25,000 25,053 23,662 11,-01-90 4.875% 50,000 49,449 46,371 09-01-92 41875% 75,000 74,015 63,147 11-01-92 4.750% 147,000 144,475 126,952 11-01-93 4.625% 20,000 20,000 16,223 09-15-94 4.6257. 120,000 119-629 93,542 10-01-97 6.8757.. 100,000 99,492 82,682 02-01-99 7.000% 1,400,000 1,183,863 1,179,192 1,937,000 1,716,176 1,631,771 08-01-89 9.500% 100,000 100,000 99,908 05-15-93• 0.075% 500,000 499,029 473,450 600,,000 599,029 573,438 10-01-89 8.500% 100,000 100,260 99,701 07-01-90 9.875% 12,000 12,040 12,093 112,000 112,308 111,794 $51,237,521 $48,529,372 $47,987,526 CITY OF LANSING POLICE'AND FIRE RETIREMENT SYSTEM COMMON STOCK DECEMBER 31, 1988 NUMBER OF MARKET STOCK SHARES COST VALUE, ALLTEL CORP ALUMINUM COMPANY OF AMERICA ALZA CORP AMERICAN BRANDS, INC AMERICAN EXPRESS'COMPANY AMERICAN GENERAL CORP AMERICAN HOME:PRODUCTS'CORP AMOCO CORP - ARISTECH CHEMICAL CORP ATLANTIC RICHFIELD COMPANY BANK OF NEW YORK CO INC BETHLEHEM STEEL CORPORATION BLACK &.DECKER CORP BOEING COMPANY - BRITISH PETROLEUM PLC. BRUNSWICK CORPORATION CHEVRON CORP CHRYSLER CORPORATION CHUBS CORPORATION COMMENWEALTH EDISON COMPANY COMPAQ.COMPUTER CORP CONSOLIDATED RAIL CORPORATION DIGITAL COMMUNICATIONS- ASSN INC DIGITAL EQUIPMENT CORPORATION DUN '& BRADSTREET CORPORATION ELI LILLY & CO FLEET NORSTAR FINANCIAL GROUP INC FLORIDA ROCK INDUSTRIES - FORD MOTOR COMPANY GENCORP INC GENERAL CINEMA' CORPORATION GENERAL MOTORS CORPORATION GEORGIA-PACIFIC CORPORATION GLAXO HOLDINGS'NEW ADR SPONS GOODYEAR TIRE & RUBBER CO HALLIBURTON COMPANY HANSON PLC HENLEY GROUP INC HERCULES INC HONEYWELL INCORPORATED IMPERIAL OIL LTD.CONV INTEL CORP INTERNATIONAL BUSINESS MACHINES CORP ITT CORP JOHNSON & JOHNSON K MART CORPORATION LONG ISLAND LIGHTING COMPANY LOTUS DEVELOPMENT CORP 4,500 $139,713 $163,125 3,000 151,364 168,000 10,000 250,767 223,750 4,000 216,946 262,000 10,000 337,008 266,250 14,000 456,496 414,750 3,000 229,137 249,750 7,000 _ 592,790 525,000 12,000 388,098 337,500 5,000 426,506 403•,1.25 77000 247,553 259,000 8,.000 176,543 186,000 20,000 423,757 462,500 11,000 620,007 666,875 5,200 292,854 279,500 8,000 127,122 135,000 5,000 239,675 228,750 2,700' 72,540 69,525 10,000, 538', 414- 580,000 8,000 254,768 264,000 6,000 322,386 357,750 - 10,000 329,277 337,500 16,000 348,302' 296,000 5,500 542,454 541,063' 15,000 741,246 804,375 5,000 420,192 427,500 19,000 470,76.7 484,500 5,000 155,225 151,250 8',000- 348,518 404,000 12,000 441,926 201,000 15'.,000 272,761 382,500 8,000 664,640 668,000 15,000 563,632 553,125 10,000 190,002 192,500 8,000 498,621 409,000 24,000 641,921 672,000 20,000 251,300 282,500 8,000 184,774. 173,000 10,000 449,880 445,000 5,000 323,612 298,750 7,000 296,505 293,125` 21,000 486,250 498,750 4,000 492,320 487,500 11,000 634,549 554,125' 7,000 579,538 595,875 20,000 671,253 702,500 10,000 136,000 127,500 7,.900 153,122 144,175 -12- CITY OF LANSING POLICE.AND FIRE RETIREMENT SYSTEM COMMON STOCK DECEMBER 31, 1988 NUMBER OF . MARKET STOCK SHARES COST VALUE' MARTIN-MARIETTA-CORPORATION MCA INC MCDONALDS CORPORATION MCGRAW-HILL INC MELVILLE:CORPORATION MERCK & COMPANY INC. MIDDLE'SOUTH UTILITIES MINE SAFETY APPLIANCES CO MOTOROLA INC NATIONAL.EDUCATION CORPORATION NATIONAL FUEL GAS COMPANY NATIONAL PRESTO INDUSTRIES INC NATIONAL SERVICE INDS INC OSHKOSH TRUCK CORP PENNEY J C COMPANY PHILADELPHIA ELECTRIC COMPANY PHILIP MORRIS COMPANIES INC PURITAN-SENNETT'CORPORATION QUESTAR CORP" RJR NABISCO INC ROHM & HAAS'COMPANY SCOTT PAPER -COMPANY SHERWIN WILLIAMS COMPANY SMITHKLINE BECKMAN CORP SOCIETE NATIONALE ELF AQUITAINE SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP STARRETT L S COMPANY STARRETT L S COMPANY CLASS 8 TANDY CORPORATION TECHNITROL INC TECUMSEH PRODUCTS CO TEXACO INCORPORATED THERMO ELECTRON CORP TIFFANY .& CO UNION PACIFIC CORPORATION UNISYS CORP UNITED TELECOMMUNICATIONS INC UST INC USX CORP VULCAN MATERIALS COMPANY WAL-MART STORES INC WASTE MANAGEMENT INC WESTINGHOUSE ELECTRIC CORP WITCO CORP TOTAL 9,000 '$374,305 $364,500 16,000 707,554 126,000 11,000 484,627 529,375 6,000 380,084 373,500 4,000 3119794 297,500 11,000 55.4,444 635,250- 10,900 162,949 174,400 3,500 141,750 148,750 9,000 434,641 378,000 20,000 389,674 465,000 v ,000 300,640 266,000 10,000 312,195 332,500 13',500 333,827 290,250 3,900 118,330 45,825 15,000 761,324 759,375 3,400 66,045 68,000 7,000 697,262' 713,125 22,.000' 258,130 346,500 12,000 459,359 387,000 39000 159, 900• 273'9375 7",000 224,755 240,625. 7,900 327,912 310,075 6,000 156,258 152,250 121500 665,157 601,563 6,000 177,750 385,200 8,000 438,995 434,000 5,000 111,745 127,500 5,000 111,745 126,250 12,000 532,434 492,000 8,000 164,516 236,000 2,000 253,411 285,000 13,000 629,569 664,625 30,000 401,970 607,500 1.1,000. 468,581 463,375 4,000 240,750 257,000 20,000 608,632 562,500 5,000 167,062 231,875 6,000 179,695 246,000 29,000 836,501 848,250 2,000 283,030 332,006 23,000 679,334 721,625 18,000 497,699 744,750 12,000 . 652,665 631,500 10,200 445,601 357,900 $34,459,626 $35,261,950 -13- 0 CITY OF LANSING POLICE & FIRE -RETIREMENT SYSTEM INVESTMENT PORTFOLIO ANALYSIS DECEMBER 31, 19SB Par Value Percentage Repurchase Agreement $5,721,927 6.70% U.S. Treasury Notes 13,410,000 15.70% Bonds: Moody's."AAA" 3,069,000 3.60% Moody's."AAll 1,.747,000 2.00% Moody's "A" 4,128,000 4.80%. Moody's "BBB" 3,430,000 4-.00% Not rated (U.S. Government & Agencies) 19,677,594 23.00% Total bonds 32,051,594 37 40% Common Stocks at cost 34,459,626 40.20% Total investments, $85.,643,.1.47 100.00y. CLASSIFICATION OF BONDS Cash equivalents Demand obligations $5,721.,927 11.17% Bonds:: U.S. Treasuries 19',809,000 38.66% Agencies 8,700,000 16.98%. Passthroughs 1.,620,654 3.16y. Municipals 3;219,000 6.28% Finance: 6,717,940 13.11% Industrial 2,800,000 5.47% Public Utility 1,937,000 3.78% Real Estate 600,000 1.17% Transportation 112,000 ------------ 0.22% ------- Total $51,237,521 100.00% -14- City of Lansing Police and Fire Retirement System Statement of Membership December 31, 1988 Membership - December 31, 1987 Add: New members during year Total Deduct: Members retired 19 Resigned and contributions refunded 3 Membership - December 31, 1988 Active Members Deferred Duty Disability Inactive Totals Summary of Membership Number Annuity Savings 472 $7,835,337 4 78,904 25 371,307 5 926 506 $8,286,474 507 21 528 22 506 Service Credit Months 78,017 799 6,089 28 84,933 -15- r City of Lansing Police and Fire Retirement System Retirants and Beneficiaries December 31, 1988 Annual Benefits Type of Benefits Being Paid: Number Being Paid Age and Service Benefits: Regular service - benefit terminating at death of retirant 13 $ 135,165 Regular service - potential 50% survivorship benefit to widow 212 3,617,332 Option I benefit - 100% joint and survivor 2 7,445 Option II benefit - 50% joint and survivor 10 64,174 Beneficiaries 40 191,471 Total age and service benefits 277 $4,015,587 Casualty Benefits: Duty disability 51 $ 859,442 Duty disability beneficiaries 4 30,436 Non -duty disability 1 13,196 Non -duty disability beneficiaries 1 741 Duty death beneficiaries 8 37,559 Non -duty death beneficiaries 5 27,785 Total casualty benefits 70 969,159 Total benefits 347 $4,984,746 -16- City of Lansing Police and Fire Retirement System Members Retired During 1988 Annual Date of Age at Service Type of Retirement Name Retirement Retirement Yrs. Mos. Retirement Benefit Devlin, Lawrence 01-88 52 28 2 Regular $33,131.52 Miller, Michael C. 01-88 49 .25 6 Regular 20,479.92 Phelps, Homer 01-88 60 35 8 Regular 28,443.24 Frayer, Wesley A. 01-88 56 30 1 Regular 22,068.96 Gehrholz, Justin G. 01-88 60 32 1 Regular 29,094.12 Merchant, Thomas C. 02-88 53 25 3 Regular 23,339.52. Carter, Ray D. 03-88 48 2-7 0 Regular 25,169.52 Wiegman, Wesley P. 03-88 47 25 0 Regular 24,333.48 Wilson, Gordon A. 03-88 52 25 0 Regular 22,088.28 Gaukel, George 04-88 49 26 10 Regular 22,365.72 Michels, Gordon 04-88 55 31 11 Duty Dis. To Reg. 23,771.16 Kegebein, Arnold, H. Jr.06-88 47 25 3 Regular 25,185.12 Meredith, Carlton D. 07-88 59 34 0 Regular 31,838.76 Sample, Darwyn L. 07-88 52 26 0 Regular 23,833.08 Dennany, Donald A. 07-88 58 33 5 Regular 24,184.40 Mires, Jerry L. 09-88 43 21 10 Duty Dis. 28,299.48 Finn, Charles P. 09-88 50 25 0 Regular 25,219.80 Hunt, Rodney W. '10-88 45 23 3 Duty Dis. 25,604.76 Lardie, Dean A. 12-88 35 15 7 Duty Dis. 21,683.76 Total .$480,134.60 -17- City of Lansing Police and Fire Retirement System Beneficiaries Added to Roll 1988 Annual Date Age at Type of Retirement Name Added Retirement Retirement Benefit Simmons, Dorothy 4/88 77 Widow Benefits $ 3,114.48 Keenoy, Ann 5/88 71 Widow Option I 7,822.92 Total $10,937.40 City of Lansing Police and.Fire Retirement System Terminations 1988 Date of Annual Termination Type of Retirement Name *Death Retirement Benefit Michels, Basil J. 01/88 Option I $ 5,150.04 Loepke, Peter K. 01/88 *(returned to Duty Dis. 21,314.04 Simmons, Frank 04/88 work) Regular/Term 6,228.84 Jakovac, Karl G. 04/88 Regular/Term 5,990.76 Keenoy, Marchus J. 05/88 Regular 7,822.92 Maier, Marian E. 07/88 Option I 4,476.00 Freeman, Isaac M. 11/88 Regular/Term 5,407.56 Allen, Theodore 12/88 Regular/Term 5,150.04 Total $61,540.20 -19-