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HomeMy WebLinkAbout1992 mins Police and Fire Retirement System minutes FINAL OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for December December 15, 1t%92 8th Floor Conference Room Tuesday, 8 : �2 a.—,qn. City Hall '-n! Lansing, MI The Board met in regular session and was called to order�by thb� Chairperson, Jack Cushman, at 8 : 35 a.m. Present: Trustee Barkyoumb, Braun, Cushman, Goodin, McKangP a d Kus - 6 Absent: Trustee Benavides and Luzynski - 2 Others : Stephen Duarte, Secretary, Douglas Rubley, Steven Dougan and Teri Cook, Finance Dept. ; Edward Piloske, Internal Audit; Bruce Lankheet, Police Dept. ; Melvin McWilliams , Law Dept. The Secretary reported 1 new member, 0 reinstatements , 0 refunds and 3 retired. Total Membership: 559 . Refunds made since the last regular meeting amounted to $0 . 00 . Retirement allowances paid for the month of November 1992 amounted to $584, 597 . 53 . Total retirement checks printed for the P&F System: 401 . Total retirement checks printed for all three systems 940 . It was moved by Trustee Barkyoumb, supported by Trustee Kus that the Board approve the application for Regular Age and Service Retirement for: James C. Gleason, Police Department, 26 years 6 months service credit, age 48 , effective January 23 , 1993 . Peter K. Loepke, Police Department, 25 years 3 months service credit, age 53 , effective January 30 , 1993 . Ronald R. Middaugh, Police Department, 25 years 1 month service credit, age 48 , effective January 16 , 1993 . It was moved by Trustee Kus, supported by Trustee Barkyoumb that the Board approve the application for Regular Age and Service Retirement for: Lowel L. Nash, Police Department, 25 years 10 months service credit, age 48 , effective December 2 , 1992 . Charles J. Shawnee, Police Department, 27 years 2 months service credit, age 49 , effective January 9 , 1993 . Police and Fire Retirement System Regular Meeting of December 15, 1992 Page 2 Both motions were adopted by the following roll call vote: Yeas: Barkyoumb, Braun, Cushman, Goodin, Kus - 5 Nay: None Mr. Duarte stated that there were no Domestic Relations Orders received. Mr. Duarte stated that there were no Eligible Domestic Relations Orders certified. Trustee McKane arrived at 8 : 40 a.m. Mr. Duarte reported on the application for Duty Disability from Bruce E. Freeman, Fire Department. The recommendation from Dr. Telles had not been received. Mr. Freeman is scheduled to see Dr. Telles on January 26 , 1993 . Trustee Cushman stated that Bruce Freeman is continuing on duty sick leave. He asked that Mr. Duarte notify the fire administration of the information he presented. It was moved by Trustee Barkyoumb, supported by Trustee Braun that this item be tabled and that notification of this action be sent to the administration. Adopted by the following vote: Unanimously. A letter to Richard Burgess was reviewed explaining that Mr. Burgess had earned over the allowable amount and that the City would begin withholding the excess earnings, spreading the amount over the next 12 months . It was moved by Trustee Barkyoumb, supported by Trustee Kus that the letter be sent as prepared. Adopted by the following vote: Unanimously. Doug Rubley stated that the last duty disability evaluation was done in April of 1991 . Staff will try to prepare for the January Board meeting. Trustee Cushman suggested that board members review at executive meeting and bring back recommendations. It was moved by Trustee Braun, supported by Trustee McKane the receipt of the certification of nominating petitions for Bruce Lankheet from Mr. Duarte. Adopted by the following vote: Unanimously. The schedule of meeting dates for 1993 was reviewed. It was moved by Trustee Barkyoumb, supported by Trustee Kus that the schedule of meeting dates for 1993 be approved with one correction. Adopted by the following vote: Unanimously. It was moved by Trustee McKane supported by Trustee Barkyoumb to excuse Trustee Benavides and Trustee Luzynski from the meeting. Adopted by the following vote: Unanimously. Police & Fire Retirement System Regular Meeting of December 15, 1992 Page 3 Trustee Kus gave an overview of his meeting with Dr. Yerian, of the State Police, regarding duty disability applications . The State Police has a panel that consists of a Medical Director, the applicant' s physician and a neutral physician. All three doctors examine the individual. Dr. Yerian stated that he would be happy to meet with anyone on the board. Mr. Duarte suggested that the Board develop criteria before meeting with Dr. Yerian. Mr. Rubley suggested that the Employees Retirement Board be invited. It was moved by Trustee Kus and supported by Trustee McKane to invite Dr. Yerian to a board meeting. Adopted by the following vote: Unanimously. Discussion was held on the filing of disability earnings. It was stated that some individuals are bragging on how they are taking advantage of the system. They are earning other income and putting in deferred comp or 401K. Mr. Duarte suggested that the form be revised to include all W2 earnings. Filing of disability earnings was tabled until the next meeting. Trustee McKane stated that this was his last Board meeting. He thanked everyone who had served on the Board over the years and was proud to be a part of it. He extended a happy holiday to everyone. Trustee Cushman thanked the Mayor, Mr. Duarte and also Mr. Braun for their input on this Board and stated the system will be at a loss with the leaving of two Board members and the Secretary. He wished the three the best. Mr. Duarte stated that he has pushed forward the concept of prefunding of health care. The ordinance went to City Council Committee on Ways and Means. He stated that it is financially prudent to prefund health care. He encouraged the Board to pursue this concept and how it is dealt with. Trustee McKane left the meeting at 9 : 40 a.m. Mr. Rubley recommends that the City lower its equity exposure and indicated he would do this to meet a $2 million cash flow need. Mr. Rubley would also like to bring in the Sass representatives to a joint Board meeting in March. Also, Mr. Rubley advised the Board regarding management activity for November 1992. The meeting adjourned aat� 10: 00 a.m. Douglas L. Rubley, Secretary Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for November November 10, �92 8th Floor Conference Room Tuesday, 8 : 36 jl,�,M., City Hall Lansing, Michigan r The Board met in regular session and was called to order b,,jj t, e ;; Chairperson, Jack Cushman, at 8 :36 A.M. Cd Present: Barkyoumb, Bruan, Cushman, Goodin, Kus, Luzynsk :, nd McKane - 7 Absent: Benavides - 1 Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White and Lesley Ann Seldenright, Finance Dept; Ed Piloske, Internal Audit Dept. ; and Gene Bateman, Fire Dept. ; Melvin McWilliams, Chief Assist. City Attorney Mr. Duarte requested that the Board address item #3 , reading of the minutes, later in the meeting. The Secretary reported 2 new members, 0 reinstatements, 0 refunds and 0 retired. Total Membership: 561. Refunds made since the last regular meeting amounted to $00 . Retirement allowances paid for the month of October, 1992 amounted to $581, 897 . 27 . Total retirement checks printed for P&F System 398 . Total retirement checks printed for all three systems 895 . Discussion was held concerning the status on the Duty Disability Retirement for Gene Bateman, Fire Department. Mr. Duarte distributed copies of a letter (re: forms developed by the City of Lansing for documenting the Medical Director' s opinion as to employee disability) that he sent to Dr. Telles. Also, he passed out a form entitled "Certification of Disability" which had been completed and returned by Dr. Telles. for Mr. Bateman. Mr. Duarte informed the Board that Mr. Bateman has met with the Director of Personnel, Safety and Training, relative to the "Handicapper Reasonable Accommodation Policy and Policy to Assist Employees who Become Handicappers" , and has signed the form declining to apply for accommodation. Discussion continued. Trustee McKane arrived at 8 : 45 A.M. It was moved by Trustee Barkyoumb, supported by Trustee Kus that the Board approve the application for a Duty Disability Retirement for Gene Bateman, Fire Dept. with 24 years 11 months service credit and age 46 . Adopted by the following roll call vote: Yeas : Barkyoumb, Braun, Cushman, Goodin, Kus, Luzynski and McKane - 7 Nays: None Trustee Kus advised the Board that Dr. Richard Yerian was not aware of any guidelines for a procedure for hiring a Medical Director. Also, since the new ADA law (qualif ing guidelines for permanent disability conditions) has come into play, the employer must handle the problem and must do the adjusting. Trustee Kus will be contacting Dr. Yerian within one week, and that if any one else from this Board, or the Employees Retirement System Board is interested in joining him at this meeting, they are welcome to do SO. In addition, the Chairperson clarified that he felt that the ADA law was created to protect the employee. Mr. Duarte, Secretary, informed the Board that the deadline for turning in nominating petitions for the office of Trustee on the Police and Fire Retirement Board is 4 : 00 P.M. Tuesday, November 10, 1992, and that, to date, Bruce Lankheet is the only person who has turned in a petition. The Secretary also advised the Board that the Police Chief has presented for the Board' s approval the following names as election inspectors for the upcoming Police Trustee election; Sgt. Assiff , Sgt. Frevor, Sgt. Mazzano, Sgt. Ruppert and Sgt. Wright and, that if an election is necessary, it will be held on the 3rd floor of the Police Department(Detention) . It was moved by Trustee Kus, supported by Trustee Luzynski that the Board approve Sgt. Assiff, Sgt. Frevor, Sgt. Mazzano, Sgt. Ruppert and Sgt. Wright as election inspectors for the Police Trustee election. Adopted by the following vote: Unanimously. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. The Secretary, Mr. Duarte, apprised the Board that he has informed the Mayor' s Office concerning the expiration of Mr. William BarkyoumbbIs term of office on December 31, 1992, as Citizen Trustee on the Police and Fire Retirement System Board. Mr. Duarte and the Chairperson, based on past performance and commitment, recommend the reappointment of Mr. Barkyoumb to the Board for a new term that will expire December 31 , 1997 . Mr. Barkyoumb indicated that he would like to serve another term on the Board. Mayor McKane, who was present at the Board meeting, informed the Board that it has already been taken care of . The Chairperson asked Mr. Duarte if he knew the person or persons who would be handling the Retirement Office duties during the interim, before filling vacancies, due to the retirement of both Mrs . Ruby White and Mrs. Lesley Ann Seldenright from the City of Lansing. Mr. Duarte deferred this question to the Mayor who was present at the meeting. The Mayor stated that he has taken this item to the Council and, to date, has not received an answer. It was moved by Trustee Luzynski, supported by Trustee Barkyoumb that the Board excuse Trustee Benavides from the Meeting. Adopted by the following vote: Unanimously. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the minutes of the regular meeting for October 21, 1992, be approved with the correction of the spelling of just one word. Adopted by the following vote: Unanimously. Mr. Rubley informed the Board that he does not have a full report this month, but will be mailing it to the Board as soon as all the information is available from National Bank of Detroit. Also, Mr. Rubley advised the Board that: 1) S & P was up . 21%, 2) ANB up . 25%, 3) Harbor up 2. 88%, 4 ) Lazard up 1. 51%, 5) fees are a consideration in the equity managers, etc. Mr. Duarte, Secretary, distributed to the Trustees Police and Fire Retirement System Annual Report for the Board' s review, and advised that it was being placed on the Council agenda. The Meeting Adjourned at 9 : 05 A.M. Stephen W. Duarte, Secretary Police Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for October October 21, 1992 Council Conference Room Wednesday, 8: 37 A.M. loth Floor, City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Jack Cushman, at 8 : 37 A.M. <%.J Preset: Benavides, Barkyoumb, Braun, Cushman, Goodin, Kus , and Luzynski - 7 Absent-: McKane - 1 Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White and Lesley Ann Seldenright, Finance Department; Ed Piloske, -- Internal Audit Dept. ; Gene Bateman, Fire Dept. ; Bruce ' Lankheet, Police Dept. ; and Alan Sonnanstine, Gabriel Roeder Smith & Co. .A conference call was made to Dr. Telles concerning the medical report for a Duty Disability Retirement for Gene Bateman, Fire Dept. with 24 years 11 months service credit and age 46 . Dr. Telles indicated that Mr. Bateman' s condition is permanent and that he is partially disabled to perform the duties of a fire fighter. Dr. Telles stated that there is a new ADA law in existence which establishes the qualifying guidelines for permanent disability conditions which she must follow. Dr. Telles also suggested that the Board needs to have, in writing, a list of all the essential job functions for Mr. Bateman. Mr. Duarte informed the Board that Mr. Bateman must be advised by the Personal Director concerning the Reasonable Accommodation' s Act. In addition, the Secretary stated that the Board must document why Mr. Bateman can not perform as a fireman. The Chairperson stated that he concurred -with Trustee Beneavides that the Board continue the process before us and follow the guidelines under the ADA law in order that the Board does not violate any rights of the individual or procedures of the City. It was moved by Trustee Benavides, supported by Trustee Kus that the Board refer this item to the City Attorney' s Office for review and comment, and the Personnel Department concerning the Reasonable Accommodations Act with a response, as soon as possible, or before the next Board meeting. Adopted by the following vote: Unanimously. 1 Police & Fire Retirement System October 21, 1992 Alan Sonnanstine of Gabriel, Roeder, Smith and Company provided a presentation to the Board on the report of the Annual Actuarial Valuation for December 31, 1991 highlighting ; such items as: 1) level of contribution rates, current assets, market value, achievement tests, contingency reserve, meeting financial objectives etc. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the minutes of the regular meeting for September 14, 1992 be approved. Adopted by the following vote: Unanimously. The Secretary reported 0 new members, 0 reinstatements, 2 refunds and 0 retired. Total Membership: 559. Refunds made since the last regular meeting amounted to $10,278 . 97 . Retirement allowances paid for the month of September, 1992 amounted to $578 ,736 . 99. Total retirement checks printed for P&F System 397 . Total retirement .checks printed for all three systems 891 . It was moved by Trustee Luzynski, supported by Trustee Barkyoumb that the application for Regular Age and Service Retirement for LaVern R. Counseller, Fire Department, be approved, he having qualified with 27 years service credit, age 50 , effective October 3 , 1992, and that the Secretary make the necessary transfer of funds . Yeas : Benavides, Barkyoumb, Braun, Cushman, Goodin, Kus and Luzynski - 7 Nays : None The Secretary asked Trustee Kus if he was able to acquire any information on the procedures for hiring a Medical Director. Trustee Kus responded that he would try to contact Dr. Richard Yerian concerning this item, and return with some information by the next Board meeting. Mr. Duarte, Secretary, informed the Board concerning the status. of the Duty Disability Earnings requests. stating that: 1) Eric Stevens is the only person that has not yet filled his form, 2) that Mr. Richard Cortright has now returned his earnings request to the Retirement Office, and 3) that Richard Burgess was overpaid by almost $5,000 . 00 and that he will be reviewing this situation. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Durate informed the Board that there are no Eligible Domestic Relations Orders to be certified. i 2 Police & Fire Retirement System October 21, 1992 It was moved by Trustee Benavides, supported by Trustee Braun that the Board approve the contract between the Board of Trustee - City of Lansing Policemen and Firemen Retirement System and Gabriel, Roeder, Smith & Company for normal actuarial and consulting services for the year beginning July 1, 1992, in the amount of $7 ,480 . 00, payable in quarterly installments of $1, 870. 00 and that the Board authorize the Chairperson to sign the contract pending approval as to form by the City Attorney and certification of funds by the City Controller. Adopted by the following vote: Unanimously. Discussion was held concerning the fact that Bill Hutchens had left the firm of J.A. Hannah Investment Advisory Service, Inc. and that there were some concerns from the Board on this matter. Mr. Duarte, Secretary, recommended that the Board maintain the firm, and advised that John Hannah will be the lead consultant and that the Board can assume that Mr. Hannah will give his clients the best advise possible. In addition, Mr. Duarte indicated that he is sure there are no criminal wrong doings on the part of the J. A. Hannah firm. Also, he indicated that during his conversation with Mr. Hutchens' he had nothing bad to say about John Hannah, but that it was just time to move on. Trustee Kus informed the Board, if it be their desire, he could arrange to have a routine check made on the background of J. A. Hannah by the FBI Office to see if there were any wrong doings or complaints made against the firm. It was moved by Trustee Benavides, supported by Trustee Braun that the Board authorize Trustee Kus to proceed with a routine background check regarding this matter. Adopted by the following vote: Motion Carried, 6-1. With Trustee Luzynski voting no. The Secretary apprised the Board on the upcoming Board of Trustees election stating that: 1) effective December 31, 1992, Greg Braun' s term of office will expire, 2) the new trustee will complete a 5 year term of office on the Board from .January 1, 1993 thru December 31, 1997 , 3 ) the deadline for turning in nominating petitions will be 4: 00 P.M. on Tuesday, November 10, 1992, 4) the Primary Election to determine nominees will be held over the four day period from Monday, November 30, 1992 thru Thursday, December 3, 1992 and 4) the General Election to select the trustee member will be held over the four day period from Monday, December 14, 1992 thru Thursday, December 17 , 1992. Mr. Duarte made the Board aware that an inadvertent overpayment was made to Mr. Robert McClean, Police Department, in his pension totaling $3 , 649 . 12 and that Mrs. White, Retirement Technician, 3 Police & Fire Retirement System October 21, 1992 advised the Board concerning the conversation she held with Mr. McClean on this matter. -Discussion was held concerning the policy of the Police and Fire Retirement System in recovering such overpayments in accordance with the Codified Code of Ordinance. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the Board request Mr. Duarte to write a letter to Mr. Robert McClean advising .that the policy of the retirement system is to recover such overpayments by one-twelfth each month for a one-year period and that the deduction is to be made from his pension check beginning in the month of October. Adopted by the following vote: Unanimously. Mrs. White advised the Board that Mr. Gene Bateman had just returned from speaking with Ms. Karen Brewington, Director of Personnel, Safety and Training, concerning the "Handicapper Reasonable Accommodation Policy and Policy to Assist Employees who Become Handicappers" and that he had signed the form declining to apply for accommodation. And, that Ms. Brewington, Director of Personnel & Training advised that there were no jobs within the Fire Department to accommodate his restrictions. Discussion was held and the Board requested the Attorney' s Office to review Mr. Gene Bateman' s situation. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that Trustee McKane be excused from the Board meeting. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of September 30 , 1992, and presented a brief overview of the transactions by the outside money managers. Mr. Rubley also distributed to the Board members a copy of a letter addressed to Mr. Rubley from John Hannah concerning Mr. William Hutchens leaving the firm and that Mr. Stephen Leahy and Ms. Clair Sonnenberg will be joining the Hannah Group. Mr. Rubley informed the Board that: 1). the equity market was rather flat this year, 2) both bond managers up 1. 25%, 3) S & P bond index up 1. 42%, 4) bond managers up the last year and half except for 3 months, 5) S & P up . 9Q and 6) S & P index managers are doing exactly what they are suppose to be doing. The Meeting Adjourned at 10: 50 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 4 ^•FFTCIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for September September 14, 1992 Council Conference Room Monday, 8 : 37 A.M. 10th Floor, City Hall Lansing, Michigan T4e • Hoard met in regular session and was called to order by the Chairperson, Jack Cushman, at 8 : 37 A.M. Present: Barkyoumb, Braun, Cushman, Goodin, Kus, and Luzynski-6 Absent: Benavides and McKane - 2 Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White and Lesley Ann Seldenright, Finance Department; Ed Piloske, - ; Internal Audit Dept. and Gene Bateman, Fire Dept. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the minutes of the regular meeting for August 18, 1992, be approved. Adopted by the following vote: Unanimously The Secretary reported 1 new member, 0 reinstatements, 1 refund and 4 retired. Total Membership: 561. Refunds made since the last regular meeting amounted to $5, 608 . 07 . Retirement allowances paid for the month of August, 1992 amounted to $578, 874 . 82. Total retirement checks printed for P&F System 397 . Total retirement checks printed for all three systems 884. It was moved by Trustee Kus, supported by Trustee Barkyoumb that the application for Regular Age and Service Retirement for John H. Volz, Fire Dept. , be approved, he having qualified with 27 years 1 month service credit, age 49, effective July 26, 1992, and that the Secretary make the necessary transfer of funds. Yeas: Barkyoumb, Braun, Cushman, Goodin, Kus & Luzynski - 6 Nays: None It was moved by Trustee Barkyoumb, supported by Trustee Kus that the application for Regular Age and Service Retirement for Ronald D. Lyon, Police Dept. , be approved, he having qualified with 25 years 10 months service credit, age 48 , effective November 3 , 1992, and that the Secretary make the necessary transfer of funds. Yeas : Barkyoumb, Braun, Cushman, Goodin, Kus & Luzynski - 6 Nays: None Mr. Duarte provided a status report on the members service credits transferred from the General Employee' s Retirement System to the Police and Fire Retirement System advising that the labor / 1 Police and Fire Retirement System September 14 , 1992 negotiation settlement effective June 30, 1992 the job classifications of Park Security Officer I and III were eliminated and the incumbent employees holding these positions were to be laid off. The affected employees have the following options : 1) accept the layoff and exercise his rights under the Michigan Employment Security Act; 2) exercise an early retirement option of Age + Service = 65 points and 3 ) accept a preferential hiring opportunity of a position in the Lansing Police Department for which they qualify for. It was moved by Trustee Barkyoumb, supported by Trustee Braun that the Board accept the transfer of the members service credits for Paul Arnold, Kim Kranich and Joseph Brown from the General Employee ' s Retirement system to the Police and Fire Retirement System. Adopted by the following vote: Unanimously. Mr. Duarte advised the Board that there has been no update on the procedure for hiring a Medical Director, however, he did ask Trustee Kus if he would be able to acquire draft of the procedures Dr. Richard Yerian may have. Trustee Kus advised he would check with him and make sure Mr. Duarte received a copy. The Secretary informed the Board that there were only two people that have not yet filed there Duty Disability Earnings report and they are Eric Stevens and Richard Cortright. Mr. Cortright' s second notice, which was sent certified mailed, was returned to the Retirement Office as unclaimed. Mr. Duarte has since sent another copy of the second notice out by regular mail. In addition, Mr. Duarte advised the Board that Richard Burgess was the only person that reported earnings in excess of his retirement allowance by approximately $5,000 . 00, and Mr. Duarte will be reviewing this situation. The Board moved to item number 16 - Public Comments for items not on the Agenda - Mr. Gene Bateman, Fire Department, presented to the Board a letter from himself requesting that he be placed on duty disability pension. Mr. Duarte quickly reviewed the letter and stated that we would receive the letter and start the process. This item will be discussed later in the meeting. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. The Secretary,- Mr. Duarte, advised the Board that the MAPERS 2 Police and Fire Retirement System September 14, 1992 conference will fall on Tuesday, October 20th which is the same day that the next regularly scheduled Board meeting is to be held, and would it please the Board to reschedule their meeting. It was moved by Trustee Braun, supported by Trustee Barkyoumb that the Board reschedule the October meeting for Wednesday, October 21, 1992 . Adopted by the following vote: Unanimously. Mr. Duarte thanked Melvin McWilliams, Chief Assist. City Attorney, for making sure that the contract with J. A. Hannah was processed properly, and that the Board Chairperson could sign the contract today which the Board had already given authorization to do so at last month' s meeting. The Board returned to the item of Mr. Gene Bateman' s request for duty disability pension. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the Board receive and place on file the letter from Mr. Gene Bateman requesting a duty disability pension, and further in accordance that with the Codified Ordinance 294 . 02(L) ( 1) that Mr. Bateman be referred to Dr. Telles, Medical Director, for a medical examination. Adopted by the following vote: Unanimously. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the Board excuse Trustee Benavides and McKane from the Board meeting. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of August 31, 1992, and presented a brief overview of the transactions by the outside money managers. Mr. Rubley informed the Board that: 1) we received the contract from Hannah and will be signed by the Board Chair today in accordance with Public Act 55 , Section 38 . 1133 & the Board' s resolution, 2) will meet with Hannah next month to decide what will be placed in their report, 3 ) Hannah' s first meeting with the Board will be in November, 4) we are on-line with NBD, 5) indicated page #1 ( in-house activity) is a new informational sheet for the portfolio summary. Mr. Rubley reviewed the projected asset and liability needs of the system for Fiscal Year 1993 : 1) City contribution of approximately $4,900, 000, 2 ) employee contribution of $808,000, 3 ) retirement & management expenses of $7 , 900 , 000, 4) approximately $2, 100 ,000 would be required from system earnings, 5) both bond managers for 3 Police and Fire Retirement System September 14, 1992 the year have done extremely well, 6) S & P down 2. 40, 6) value managers need to be checked on, 7) no additional news on M.D. Sass (bonds are still priced at $25 to $30) , 8) Doug will be providing a 3 ring notebook to each Board member covering guidelines, information on managers, comparison, etc. The Meeting Adjourned at 9 : 34 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 4 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for August August 18 , 1992 Council Conference Room Tuesday, 8 : 34 A.M. loth Floor, City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Jack Cushman, at 8 : 34 A.M. Present: Benavides, Barkyoumb, Braun, Cushman, Goodin, Kus, Luzynski and McKane - 8 Ak se7ii+: None c� Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White and Lesley Ann Seldenright, Finance Department; Melvin McWilliams, Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. It was moved by Trustee Kus, supported by Trustee Braun that the minutes of the regular meeting for July 21, 1992, be approved. Adopted by the following vote: Unanimously. The Secretary reported 2 new members, 0 reinstatements, 0 refunds and 0 retired. Total Membership: 565 . Refunds made since the last regular meeting amounted to $ . 00 . Retirement allowances paid for the month of July, 1992 amounted to $567 , 962 . 01. Total retirement checks printed for P&F System 393 . Total retirement checks printed for all three systems 874 . Trustee Benavides arrived at 8: 36 A.M. It was moved by Trustee Luzynski, supported by Trustee Kus that the application for Regular Age and Service Retirement for Roger W. Weber, Fire Dept. , be approved, he having qualified with 25 years 0 months service credit, age 50, effective August 9, 1992 , and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Barkyoumb, Braun, Cushman, Goodin, Kus & Luzynski - 7 Nays: None It was moved by Trustee Luzynski, supported by Trustee Braun that the application for Regular Age and Service Retirement for Gary Lee Thomas, Fire Department, be approved, he having qualified with 26 years 4 months service credit, age 56, effective August 23, 1992, and that the Secretary make the necessary transfer of funds. Adopted by the - following roll call vote: Yeas: Benavides, Barkyoumb, Braun, Cushman, Goodin, Kus & Luzynski - 7 Nays: None It was moved by Trustee Barkyoumb, supported by Trustee Benavides that the Board approve the transfer from Duty Disability Retirement to Regular Age and Service Retirement for William R. Wilson, Fire Department, he having qualified with 25 years 0 months service credit, age 47 , and effective July 30, 1992 . Adopted by the following roll call vote: Yeas: Benavides, Barkyoumb, Braun, Cushman, Goodin, Kus & Luzynski - 7 Nays: None The Secretary advised that there is no update regarding procedures for the hiring of a Medical Director. Mr. Duarte informed the Board that Richard Cortright, William R. Wilson and Eric Stevens were mailed the second request letter for the "Certification of Annual Earnings Received by Disability Retirees for Year Ending December 31, 1991 , and that they had not yet returned the forms to the Retirement Office, however, Eric Stevens had made a telephone inquiry to the Retirement Office, and that Mr. Duarte was answering Mr. Stevens with a letter. - Mr. Rubley addressed the Board concerning the contract with J.A. Hannah advising: 1) a few people called with comments on the contract services, 2) advised he was working with Melvin McWilliams, Law Dept. on the contract, 3 ) was addressing 3 items in the contract, 4 ) stated everything will be completed this week, 5) asked that the Board authorize the Chairman to sign the contract, 6) provide the Board with reports they will need, etc . It was moved by Trustee Benavides, supported by Trustee Barkyoumb that the Board authorize the Chairman to sign the contract with J.A. Hannah. Adopted by the following vote: Unanimously. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to. be certified. Discussion was held re: increasing level of benefits for retirees . Mr. Duarte advised that he will send a letter to the Ways and Means Committee regarding the Board' s position of settling prefunding before any increases are considered. Trustee Kus distributed to the Board copies of a letter re: prefunding of health insurance benefits and retirement improvements for retirees, from the Capitol City Lodge #141 Fraternal Order of Police, from the Supervisory Div. and the Non-Supervisory Div. The letter stated that the Lodges ' position in reference to the surplus funds may only be used for the establishment of improvements and benefits in relation to present active employees participating in the system and in no event may the funds from the retirement system be used or diverted to fund the City' s pre-existing or future contractual obligation to provide health care benefits as a part of its retirement system. The funds for such a purpose must come from some other source. The Chairperson recommended that the Board receive the letter and place it on file. Discussion continued. Trustee McKane arrived at 8 : 53 A.M. Mr. Duarte distributed copies of the schedule for the MAPERS Fall Conference to be held at the Amway Grand Plaza Hotel in Grand Rapids, Michigan from Sunday, October 18, 1992 thru Tuesday, October 20 , 1992. The Secretary asked that the Trustees inform Ms. Seldenright within the next week if they plan to attend the conference. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of July 31, 1992 , and presented a brief overview of the transactions by the outside money managers. In addition, Mr. Rubley also handed out copies of the report from Prudential Bache for the quarter ended June 30, 1992 . Mr. Rubley informed the Board: 1) terminated contract with Prudential Bache as of June 30, 1992, 2) sent letters to investment managers and stopped channeling soft dollars to Prudential-Bache, 3 ) signed with NBD on securities lending, 4) will call other managers and inform them that the contract with J.A. Hannah Investment Advisory Service, Inc. will be signed, 5 ) will keep Board informed on the quarterly report from NBD, 6) City' s contribution will be made on a monthly basis and will discuss with the actuary, etc. Also, Mr. Rubley advised the Board: 1) monthly rate of return was 3 . 09 0, 2) bond and equity market up last month, 3 ) bond managers up 1.72%, 4) M.D. Sass (Executive Life bonds had fallen from 40 to 25 and are now at 30) and will be checking on them, 5) S & P up 3 . 940 last month, etc. The Meeting Adjourned at 9 : 14 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for July July 21, 1992 8th Floor Conference Room Tuesday, 8 : 37 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Jack Cushman, at 8 : 37 A.M. Present: Braun, Cushman, Goodin, Kus, Luzynski and McKane - 6 Ab9ent: Benavides and Barkyoumb - 2 Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White and Lesley Ann Seldenright, Finance Department; Melvin McWilliams, Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. _ It;was; moved by Trustee Luzynski, supported by Trustee Kus that the m•inutds of the regular meeting of June 18, 1992, be approved as amended, correcting the word Fire Dept. to Police Dept. for Joseph A. Diaz on page 1 paragraph 3 . Adopted by the following vote: Unanimously. The Secretary reported 6 new members, 0 reinstatements, 0 refunds and 1 retired. Total Membership: 563 . Refunds made since the last regular meeting amounted to $ . 00. Retirement allowances paid for the month of June, 1992 amounted to $568, 992. 91. Total retirement checks printed for P&F System 393 . Total retirement checks printed for all three systems 864 . It was moved by Trustee Kus, supported by Trustee Bruan that the application for Regular Age and Service Retirement for Robert D. McClean, Police Department, be approved he having qualified with 26 years 1 month service credit, age 46, and effective May 30, 1992, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas : Braun, Cushman, Goodin, Kus, Luzynski and McKane - 6 Nays: None It was moved by Trustee Luzynski, supported by Trustee Kus that the application for Regular Age and Service Retirement for Harry L. Powers, Fire Department, be approved he having qualified with 25 years 0 months service credit, age 49 and effective August 2, 1992, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas : Braun, Cushman, Goodin, Kus, Luzynski and McKane - 6 Nays : None 1 Police and Fire Retirement System July 21 , 1992 Mr. Rubley informed the Board that there was an amendment to the existing contract with NBD for Security Lending which has a 30 day termination notice and the contract has been reviewed by the President, Mr. Fisher. They want to insert a clause and Mr. Rubley indicated that there is no problem with allowing this. Mr. Duarte and Mr. Rubley explained the basic reason for NBD' s amendment is to hold them free of liability should the value of a security go down while on loan. Example, should the value of the security go down to 99% rather than remaining at 1040 of loan value. Discussion was held. Trustee McKane arrived at 8 : 47 A.M. It was moved by Trustee Luzynski, supported by -Trustee Braun that the Board approve the NBD Security Lending contract, as amended, and authorize the Chairperson to sign the contract. Adopted by the following vote: Unanimously. _ Mr. Duarte advised the Board that the procedure for hiring the Medical Director has not yet been developed by that committee. The Secretary informed the Board that there were 29 Duty Disability Earnings requests mailed and that 23 were returned. The names of the 6 people that have not yet returned them is Richard Buschamp, Richard Cortright, Doraine Lee, Eric Stevens, William Tomlinson and William Wilson. It was moved by Trustee McKane, supported by Trustee Luzynski that the Board authorize the Secretary to send out a second letter of request for Duty Disability Earnings to the above 6 individuals. Adopted by the following vote: Unanimously. Mr. Duarte advised the Board concerning the contract with J. A. Hanna Investment Advisory Service, Inc. stating that during his on- site visit he covered such areas as: 1) met with their accountant, 2) they have 29 permanent clients, 3) their office presently has 2336 square feet and they are looking to buy their own office building, 4) the staff can handle at least another 5 to 8 clients , 5) they target clients of 50 million dollars or more in assets, 6) he met with Bill Hutchens, Mike Cameron & other members of the staff, 7 ) due-diligence contract, 8) Mr. Duarte indicated that he would have all his notes typed up and given to the Board, etc. Mr. Rubley, also, informed the Board that he had: 1) contacted 7 or 8 clients for references and they are very solid, 2) most of their clients have been with them 3 to 4 years and the clients are very happy, 3 ) reviewed J. A. Hanna' s credit report, 4) received Dun & Brad Street' s report, 5 ) drafted a contract with Hanna and having 2 Police and Fire Retirement System July 21 , 1992 the Law Department to review, 6) would like to send to Hanna as soon as the contract is reviewed by Melvin McWilliams, Law Dept. , 7) would like comments from the Board concerning the contract services, 8) Hal Rossen, Prudential-Bache, is sending June 6/30/92 report, 9) he will call NBD for link up so data will be sent to J. A. Hanna and terminate soft dollars for Prudential-Bache, etc. The Secretary reported that there were no Domestic Relation Orders received. In addition, Mr. Duarte informed the Board that there are no Eligible Domestic Relations Orders to be certified. Mr. Duarte distributed to the Board a copy of the memo from Melvin McWilliams, Chief Assist. City Attorney, with the attached form for Certification of Disability. Mr. McWilliams advised that this was a proposed form to be utilized by the medical director for making certification of disability to the Board of Trustees and to insure that the medical director has made a certification consistent with the actual language used in the retirement plan. Mr. McWilliams stated that: 1) he proposed a working definition for the phrase "mentally & physically totally incapacitated for the performance of duty. . . , 2) note that such a certification does not relieve the City from adhering to its obligation under the City' s handicapper policy & procedure and applicable law, and 3 ) the form leaves in the hands of the Board of Trustees the ultimate determination as to whether or not an incapacitating condition is duty related or not. It was moved by Trustee McKane, supported by Trustee Goodin that the Board approved the Certification of Disability form as written. Adopted by the following vote: Unanimously. Mr. Duarte stated that he will send this form to Dr. Telles. Mr. Duarte distributed to the Board copies of a letter from Mr. Arthur DeLau, President, Lansing Retired Policemens ' & Firemens' Assoc. which has also been referred to the Mayor and the Committee on Ways and Means re: increasing the level of benefits for retirees. Discussion was held. It was moved by Trustee McKane, supported by Trustee Luzynski that the Board recommend to the City Council no action is to be taken for a 13th pay check until the City Council resolves the issue of prefunding of health care for this system. (This is to be placed back on the agenda for next month. ) Adopted by the following vote: Unanimously. Mr. Duarte stated he would send this to Ways & Means Committee. 3 Police and Fire Retirement System July 21, 1992 It was moved by Trustee Luzynski, supported by Trustee Braun that the Board excuse Trustee Benavides and Barkyoumb from the Board meeting. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of June 30, 1992, and presented a brief overview of the transactions by the outside money managers. In addition, Mr. Rubley also handed out to the Board copies of a Public Retirement fund DataBase - 3/31/92 - returns including income in 5 percentile increments from Prudential Securities and copies of memorandum to the clients of M. D. Sass re: update on Executive Life Rehabilitation Plan. Mr. Rubley informed. the Board: 1) short term interest rates have fallen off, 2) equity market not doing quite so well and it is at a standstill until the election is over, 3 ) the S & P was down 1.74% last month and the Shearson Lehman index was up 1. 5%, 4) J. A. Hanna will look at NBD to see if they are cost effective, etc. The Meeting Adjourned at 10 : 16 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 4 (Revised Minutes —page 1, paragraph 3) A OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for June June 18 , 1992 8th Floor Conference Room Thursday 10 : 08 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Cha#pgpson, Jack Cushman, at 10 : 08 A.M. i Present* Barkyoumb, Braun, Cushman, Goodin, Kus, & Luzynski -6 Absent: Benavides and McKane - 2 Present: Stephen W. Duarte, Secretary; Doug Rubley and Lesley Ann Seldenright, Finance Department; Melvin McWilliams , Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. It was moved by Trustee Barkyoumb, supported by Trustee Kus that the minutes of the Regular Meeting for May 12 , 1992 , the Joint Board meetings for May 12, 1992 and May 13 , 1992, and the Special Board meeting for May 26 , 1992 , be approved. Adopted by the following vote: Unanimously The Secretary reported 1 new member, 0 reinstatements, 1 refund and 2 retired. Total Membership: 558 . Refunds made since the last regular meeting amounted to $747 . 47 . Retirement allowances paid for the month of May, 1992 amounted to $563 , 649 . 02 . Total retirement checks printed for P&F System 393 . Total retirement checks printed for all three systems 868 . The Secretary informed the Board that Mr. Joseph A. Diaz , Police Dept. , is the person that received the refund of his accumulated contributions . It was moved by Trustee Kus, supported by Trustee Braun that the application for Regular Age and Service Retirement for Robert L. Jones, Police Dept. , be approved he having qualified with 25 years 3 months service credit, age 51, effective April 1, 1992, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas : Barkyoumb, Braun, Cushman, Goodin, Kus & Luzynski - 6 Nays: None Mr. Duarte gave an update on the prefunding of Post-Retirement Health Care stating things remained the same and advising that 1 unit concurred and 2 units have not and, also, adding he did not believe the other 2 will endorse the concept. The Secretary 1 police and Fire Retirement System June 18 , 1992 advised that the passage of an ordinance is needed for the support of prefunding and this would fall back on the unions and City Council. Some discussion was held concerning raises for the Employees Retirement System re: the use of the 20% to member fund and 80% for prefunding. Mr. Duarte stated that employees of that group never received a distribution from their 20% allocation. Melvin McWilliams , Chief Assist. City Attorney, touched upon: 1) what fiduciary obligation does the Board have, 2) the fact that the Council does possess amendatory powers, 3 ) funds not promised for specific usage, 4) fiscal integrity of system, etc . He also added that all the money went for retirees and beneficiaries and not outside of the system. The Secretary stated that the Board has gone as far as it can with prefunding. The City Council must adopt an ordinance amendment to implement the Boards ' recommendation. The Secretary advised the Board on the status of the contract with NBD for Security Lending stating we expect to finalize the contract this week and submit to this Board for action at the next meeting. Discussion was held on the procedure for hiring a Medical Director. Mr. Duarte suggested that we set up a 3 person committee (with Trustee Luzynski, Trustee Goodin (who is a representative from both Boards) and himself , and prepare a draft to be presented to the Board for their review. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that this Board establish a committee in conjunction with the Employees Retirement system Board for the purpose of developing a procedure for the hiring of a Medical Director. Adopted by the following vote: Unanimously Mr. Duarte informed the Board that there were 29 Duty Disability Earnings request forms mailed out and as of this date 14 forms have been returned. The deadline for returning the requests is June 30 , 1992. Mr. Duarte advised the Board concerning the 415 I .R.S. limitations that: 1) our position as a City is that there is a constitutional guarantee vested pension benefit; 2 ) there is federal legislation that prohibits qualified pension plans from paying more than 100% of an employee' s average earnings computed on the highest 3 consecutive years of earnings, 3 ) legal liability to pay with ERS, 4) we' re hoping this section will be repealed, and 5 ) we are testing outgoing retirees for potential violation of section 415 limits . 2 Police and Fire Retirement System June 18 , 1992 Discussion was held re: contract with consulting firm. Several conversations have been held with J. A. Hannah and that more references will be checked. A contract is needed with J. A. Hannah in advance of the next Board meeting. Mr . Rubley indicated that Hal Rossen of Prudential-Bache is aware of the termination of their contract with the City as our performance evaluation manager, however, Mr. Rossen still desires a working relationship with us. In addition, the Board requested that Mr. Duarte send a letter to the final candidates for the performance evaluator proposals complementing them on their good presentation and that we will again consider their services in the future . Mr. Duarte advised the Board that an on-site visit to the Hannah Building will take place and, in addition, a meeting with their accountant will be held. Discussion was held re: where the operating costs are taken from for the Board' s activities for their education, etc. The Secretary advised that administrative expenses are paid for through the General fund, however, we should look at developing a budget for the Board for covering extra meetings, especially if we get into the area of .securities lending where we will be receiving additional monies . The Secretary reported that there were no Domestic Relation orders received. In addition, Mr . Duarte informed the Board that there are no Eligible. Domestic Relations orders to be certified. Mr. Duarte distributed to the Board for their information copies of the letter from Dr. Marlize Telles , M.D. , Center for occupational Health Services , which was in response to the Board' s inquiry regarding Mr. Reynaldo Gonzales ' s being physically incapacitated for the performance of the duty of a fire fighter and, therefore, can be considered permanent. Mr. Melvin McWilliams, Chief Assist. City Attorney, also distributed to the Board copies of a first draft which he prepared entitled "Certification of Disability" . This form is for the Medical Director to certify that an employee is mentally or physically totally incapacitated for the performance of duty to the City as a policeman or fireman and that such incapacity will probably be permanent or that she is unable to make the above certification. Mr. Duarte advised that he sent a separate letter to Dr. Telles advising the Medical Director' s role requires specific written certification to the Boards , bearing her signature of three criteria and then indicated them in the letter. 3 Police and Fire Retirement System June 18, 1992 Trustee Kus informed the Board that he made a copy of Dr. Marline B Telles' s Controlled Substafe from rom the Boa d f Med Bone. oThisaisato and the Physician License be placed on file. It was moved by Trustee Luz Kane supported by Trustee Braun that ene Uand nanBmouslyes from the meeting. the Board excuse Trustee Mc Adopted by the following vo - Mr. Rubley distributed to the Board copie92'o arihep ortfoed a brief for funds evaluation as of May 31,the outside money managers. overview of the transactions by the Board that 1) concerning M.D. Sass - Mr. Rubley informed Appeals Court sent the appeal back to the District Court and the lower court' s decision had not been l filed 2 he passed out growth and value copies of a letter from Harbor Capital regarding ed to their letter, 3 ). stocks and Doug indicated that he respond both bond managers gained this month, 4) asked Alan Sonnanstine to prepare a percentage allocation based on assumed rate of return, 6) this month and down 3% since end of May. S & P up , 10 for in Larzard when J. A. Hannah is on indicated that we wi_1 bring ct with J. A. Hannah before the board, ? ) we will have the contra next meeting, etc. The Meeting Adjourned at 11: 20 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System , a SPECIAL BOARD MEETING CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM 8th Floor, Conference Room May 26 , 1992 City Hall Tuesday, 8 : 40 A.M. Lansing, Michigan 9 _\J The Special Board meeting was called to order by the Chairperson, JackCushman, at 8: 40 A.M. Present:' Trustee Barkyoumb, Benavides , Braun, Cushman, Goodin, Kuz, and Luzynski - 7 Absent. Trustee McKane - 1 Present; Stephen W. Duarte, Secretary; Doug Rubley, Lesley Ann. Seldenright and Ruby White, Finance Dept. and Ed Piloske, Internal Audit. Under public comments Ed Piloske, Internal Auditor, gave a report on his review and analysis of the five performance evaluator proposals injecting that he concurred with the unanimous opinion concerning the rejection of Prudential-Bache and Shearson/Lehman proposals on the basis of qualitative factors of preference. He also indicated that the fee for Stratford Advisory Group and that "Style-Tilting" seemed more appropriate to an investment manager type function than to a performance evaluator type function. Ed also gave a comparison between J. A. Hannah and Callan Associates touching upon such areas as the firms' history, staff, experience, risk/return, independence, price, etc. Mr. Rubley advised the Board regardless of the firm selected the old contract should be terminated with Prudential-Bache in order to broaden the guidelines , and discussion was held. It was moved by Trustee Barkyoumb, supported by Trustee Braun that the Board cancel the contract with Prudential-Bache, performance evaluation manager. Adopted by the following vote: Unanimously Mr. Duarte informed the Trustees that the Employees Retirement Board sought a recommendation from the Administrative staff on hiring a consulting firm and he distributed to the Board a copy of his memo on consultant selection. Mr. Rubley discussed with the Board a few item concerning J. A. Hannah, 1) small firm, 2) only firm that analyzed stock by stock, 1 Police & Fire Retirement System May 26, 1992 3) they indicated what was presently wrong, 4) took a proactive approach in the consultant area, 5) would be working with Mr. Hannah and Mr. Hutchens, 6 ) there will be a site visit of the Hannah building, 7) if the contract is satisfactory in the first year it will continue for a five year period, 8 ) they are growing fast, 9) can rewrite investment guidelines, etc. Mr. Duarte reviewed with the Board some guidelines they would like covered in signing a new contract for a performance evaluation manager. It was moved by Trustee Barkyoumb, supported by Trustee Kus that the Board approve the firm of J.A. Hannah Investment Advisory Service as our consulting firm subject to a negotiated contract which will be brought back to the Board for review, and that arrangements will be made to have an on-site visit to the Hannah Building along with reference calls being completed. _ Adopted by the following roll call vote: Unanimously. The Meeting Adjourned at 9: 36 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 2 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for May May 12 , 1992 8th Floor Conference Room Tuesday 8 : 24 A.M. City Hall Lansing,,--,Michigan :-mot The Board met in regular session and was called to order by the Chairpers-on, Jack Cushman, at 8: 24 A.M. Present: Trustee Benavides , Barkyoumb, Braun, Cushman, Goodin, -.Kus, Luzynski - 7 Absent: : :Trustee McKane - 1 Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White, and Lesley Ann Seldenright, Finance Department; and Melvin McWilliam, Chief Assist. City Attorney It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the Board correct the minutes for April 21, 1992 on page two first paragraph to change the word Council to the word Board. Adopted by the following vote: Unanimously. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the Board approve the minutes as amended for the regular meeting for April 21, 1992. Adopted by the following vote: Unanimously. The Secretary reported 1 new member, 0 reinstatements, 0 refunds and 0 retired total Membership: 558 . Refunds made since the last regular meeting amounted to $. 00 . Retirement allowances paid for the month of April, 1992 amounted to $562, 329. 16. Total retirement checks printed for P&F System 391. Total retirement checks printed for all three systems 862. The Board requested that the Secretary move to item #9 before addressing item 46 on the medical report for Reynaldo Gonzales. Discussion was held concerning the status of Dr. Marlize Telles, Medical Director, for contract with Center for Occupational Health Services . Trustee Kus indicated that he had been doing some research on Dr. Telles background in medicine. Dr. Telles: 1) was interviewed on May 11th, 2) she had answered questions completely, 3 ) she indicated that she would try to accommodate the Board and if unable to attend a meeting would have a conference call with the Trustees when dealing with disability requests, 4) she had been licensed from Central & South American School, etc. prior to being certified in the United States. 1 Police and Fire Retirment System May 12, 1992 Trustee Benavides arrived at 8 : 25 A.M. It was moved by Trustee Luzynski, supported by Trustee Kuz that the Board hire Dr. Marlize Telles, with Center for Occupational Health Services, as Medical Director to the Police and Fire Retirement Board. Adopted by the following vote: Unanimously Trustee Kus stated that Dr. Yerian, Board for Michigan State Police, advised that in the future the Board might have two physians set in on the process for the selecting of a medical director. It was moved by Trustee Barkyoumb, supported by Trustee Kus that the Board review the procedure and attempt to develop a criteria for hiring a medical director and, also, bring this item back to the board for further review. Adopted by the following vote: Unanimously. Discussion was held concerning the medical report for duty disability retirement for Reynaldo Gonzalez, Fire Department, 13 years 10 months service credit and age 41. Melvin McWilliams, Chief Assist. City Attorney, advised that it would be a potential troublesome problem if the doctor did not state total and permanent in her report. The Board asked Mr. Duarte, Secretary, to write a letter to Dr. Telles requesting that she state in the medical report; 1) if it is a total and permanent disability, 2) whether it is duty or non-duty and 3 ) be sure the Medical Director signs all medical reports. It was stated that Mr. Gonzalez is presently on sick leave, and has been off of work for approximately 1 1/2 years. It was moved by Trustee Benavides, supported by Trustee Luzynski that the Board place Mr. Reynaldo Gonzales, Fire Dept. , on a Duty- Disability retirement status based on the Reasonable Accommodation Act and with the medical director' s concurrence. Adopted by the following roll call vote: Yeas: Benavides, Barkyoumb, Braun, Cushman, Goodin, & Luzynski - 6 Trustee Kus refrained from voting - personal issue Nays: None Mr. Duarte advised the Trustees on the prefunding of post- retirement health insurance that he had met with others that have the same concerns and presently there is no change. It was moved by Trustee Barkyoumb, supported by Trustee Braun that this item be tabled until next month' s meeting. Adopted by the following vote: Unanimously. - Trustee Luzynski voted no. 2 Police and Fire Retirment System May 12, 1992 The Secretary informed the Board that presently there was no status change on the contract with NBD for Security Lending, however, that he was waiting for a final review. This item is to be placed back on the agenda for next month' s meeting. Mr. Duarte reported that there were no Domestic Relation Orders received. In addition, the Secretary informed the Board that there are no Eligible Domestic Relations Orders to be certified. It was moved by Trustee Benavides, supported by Trustee Luzynski that Trustee McKane be excused from the Board meeting. Adopted by the following vote: Unanimously. Melvin McWilliams, Chief Assist. City Attorney, volunteered to prepare a special form which will contain the proper language for the Medical Director to sign when an employee is going on a disability status. Doug Rubley reported to the Board that there would be no asset summary report for the month of April due to the early meeting this month, however, he indicated that a report will be prepared prior to next month' s meeting and will be mailed out. Also, Mr. Rubley advised that the contract with NBD for Security Lending has been discussed with Al Knot, City Attorney, and he stated that this item will be taken care of . Mr. McWilliams, Chief Assist. City Attorney, was asked if the current performance evaluation manager elected to remain during the interviewing of other firms should the Board go into executive session since they to are bidding for the position. Mr. McWilliams stated he did not feel that was necessary. Ms . White, Retirement Technician, advised that she had terminated the existing duty disability earnings deduction for Mr. Richard Burgess, Duty Disability Retiree for Police Non-Supervisory, due to a retro contract settlement that raised his allowable earnings. Trustee Kus asked about the 415 IRS limitations and Mr. Duarte advised that he personally would be meeting on this item and to place it back on the agenda for next month' s meeting. The Meeting Adjourned at 9 : 10 A.M. �Stepn W. Duarte, Secretary Police & Fire Retirement System 3 REVISED MINUTES (page 2, lst paragraph) OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for April April 21, 1992 8th Floor Conference Room Tuesday 8 : 37 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Jack Cushman, at 8 : 37 A.M. t r�� Presfen: Trustee Benavides , Barkyoumb, Braun, Cushman, Goodin, Luzynski, and McKane - 7 Absent-:- Trustee Kus - 1 Present: Stephen W. Duarte, Secretary; Doug Rubley, Ruby White, and Lesley Ann Seldenright Finance Department; Melvin McWilliam, Chief Assist. City Attorney; Ed Piloske., Internal Audit and Bruce Lankheet, FOP Non-Supervisory President It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the minutes of the regular meeting for March 17 , 1992 and the Joint Board meeting of March 23 , 1992 , be approved. Adopted by the following vote: Unanimously The Secretary reported 6 new members , 0 reinstatements , 0 refunds and 1 retired. Total Membership: 557 . Refunds made since the last regular meeting amounted to $ . 00 . Retirement allowances paid for 911. 36 . the int d for�P&F of March g2 amounted System 390 .toTotal,retirement otal tirment che checks checksks printed r prnted for all three systems 859 . It was moved by Trustee Barkyoumb, supported by Trustee Goodin that the Board table the request for a Duty Disability Retirement by Reynaldo Gonzales , 13 years 10 months service credit, Fire Department, until the Medical Director' s report has been received. Adopted by the following vote: Unanimously Discussion was held on the prefunding of post-retirement health insurance benefits'. Melvin McWilliams , Chief Assist. City Attorney, distributed to the Board copies of the ordinance substitute language on the Health a Insurance line 22 and Draft #3 , page for the Police & Fire Draft 43 , page 11, line 8 ( see attached) . Trustee McKane arrived at 8 : 50 A.M. Melvin advised that the 312 arbitration award precludes the City 1 Police and Fire Retirement System April 21 , 1992 from making changes to prefunding. Melvin also stated that he discussed this with Al Knot, City Attorney. He advised the Board that the way to avoid problems is to have the ordinance taken back at the end of the contract; and arbitrator states no change during the life of contract. Mr. Duarte was asked can you adopt prefunding for one and not another labor union. He advised one of the 2 groups will not be happy. It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the Board adopt these two substitute proposed language changes. Adopted by the following vote: 6 Yeas with Trustee Braun voting no It was moved by Trustee Barkyoumb, supported by Trustee Benavides that the Board adopt a resolution of intent to keep with the schedule that is prepared by the actuary, and that the Board and the City take necessary actions to meet the requirements of prefunding of health insurance for retirees; and also the slow and steady increase of City contributions towards accepting full responsibility for actuarial prefunding requirements. Adopted by the following vote: Unanimously It was moved by Trustee Braun, supported by Trustee Barkyoumb that this issue of prefunding be tabled until next month. Adopted by the following vote: Unanimously. The Secretary advised that the "Certification of Annual Earnings" request will be mailed out soon and they are required to be returned before June 30, 1992. Mr. Rubley advised that we have not yet received the contract back from NBD for Security Lending but as soon as it is signed it will be returned to us and sent out to the Board. Discussion was held concerning the status of the Medical Director for the contract with occupational Health Services . It was stated that 1) Dr. Chambers had resigned, 2) Mr. Duarte .had not yet -discussed this with the Personnel Director, 3 ) the Board has the right to interview & review credentials for that position before any exams, 4) whose signature will be accepted, 5) in the interim should we approve Dr. Wiegstein, etc. It was moved by Trustee McKane, supported by Trustee Benavides that the Board request the Secretary to 1) investigate the resignation of Dr. Chambers,- 2) write a letter to the organization (Center for 2 Police and Fire Retirement System April 21, 1992 Occupational Health Services) on who they propose to take her place and site the contract, and 3 ) contact the Board to review the medical director. Adopted by the following vote : Unanimously. It was moved by Trustee McKane, supported by Trustee Goodin that the Secretary, Chair and Vice Chair be authorized to meet in the next few days to review the qualifications of a new medical director, and to decide if a special Board meeting is necessary. Adopted by the following vote: Unanimously. There were no Domestic Relations Order received by the Retirement Office. Mr. Durate, Secretary, advised the Board that the Domestic Relations order filed for Doyle L.. Larner is denied. It is not an eligible domestic relations order as the law does not apply to retirees. It was moved by Trustee Benavides , supported by Trustee Barkyoumb that the Board excuse Trustee Kus from the Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of March he 199 de money man gers2, and presented a brief overview of the transactions by Mr. Rubley informed the Board that there will be a Joint Board meeting on May 12 , 1992 following the regular Board meeting which will start at 8 : 15 A.M. Prudential-Bache two of the investment performancequarterly report and the interviewingition of performance evaluation Will be managers will take place. In Joint Board meeting to drdevi w the May 13 , 1992 , there other 3 finalists . Mr. Rubley added that these will be all morning meetings and that he would like each Board member, if possible, to attend the interviews on both days. Doug also advised thatthe will providela review sheet for the Trustees and that they may 10 minutes after each firm for evaluating. Trustee McKane left at 9 : 57 A.M. Mr. Rubley informed the Board that 1) $5 2 5 , 0 0 0 was transferredmanagers and $79 , 000 was left in cash, 2) the equity and bond market was down last month, 3 ) we must stay within the guidelines of the law of 55% allocation on the equity side, 4) there is no further information on M.D. Sass (Executive life bonds) - appeal still pending and Mr. Duarte sent all letters the Board requested 3 Police and Fire Retirement System April 21 , 1992 him to do, 5 ) both equity- managers exceeded the S & P index, etc. The Meeting Adjourned at 10 : 13 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 4 Health Insurance Prefunding Ordinance Proposed Substitute Language Police & Fire Draft # 3 , p 11, line 8 Add at end of 294 . 02 (r) ( 6 ) : T IN PLACE INSTEAD, THE PURPOSE ADF THIS SECTION IS TO VANCE CE FUNDING OF POSTURETIREMENT A MECHANISM FOR THE AND NOT, APART HEALTH INSURANCE FOR ELIGIBLE RETIREES, ON, To GRANT ADDITIONAL FROM THE ADVANCE FUNDI ANY RIGHTSIWHICH ELIGIBLE RETIREES RIGHTS OR TO TAKE AWAY MAY ALREADY HAVE. Health Insurance Prefunding Ordinance Proposed Substitute Language Police & Fire Draft # 3 , p 9 , line 22 Delete : THE AMOUNT TRANSFERRED EB THE CITY START-UP SUBACCOUNT SHALL BE DETERMINED Insert: THE AMOUNT TRANSFERRED FROM THEE PHASE PINUACCOUNT SCHEDULE SHALL BE IN ACCORDANCE WITH TH PREVIOUSLY APPROVED HBOARDTHE IN BOARD ONSULTATION WITH REVISE ANNUALLY BY T ACTUARY. OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for March March 17 , 1992 8th Floor Conference Room Tuesday 8:30 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairgorson, Jack Cushman, at 8 : 37 A.M. Pre�;entb: Trustee Barkyoumb, Braun, Cushman, Goodin, Kus, and McKane - 6 Absent: Trustee Benavides and Luzynski - 2 Present: Stephen W. Duarte, Secretary; Doug Rubley & Ruby White, Finance Department; Melvin McWilliams, Chief Assist. City ;s Attorney. It wasmoved by Trustee Barkyoumb, supported by Trustee Goodin, that the minutes of the regular meeting and joint board meeting of February 20, 1992, be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member, 0 reinstatements, 0 refunds and 0 retired. Total Membership: 552 . Refunds made since the last regular meeting amounted to $ . 00 . Retirement allowances paid for the month of February, 1992 amounted to $558, 376 . 61 total retirement checks printed for P&F System 389 total retirement checks printed for all three systems 857 . It was moved by Trustee Barkyoumb, supported by Trustee Kus, that the application for Regular Age & Service Retirement for Arthur W. Overly, Fire Department, be approved, he having qualified with 26 years 5 months service credit, age 49 , effective March 8 , 1992 , and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Barkyoumb, Braun, Cushman, Goodin and Kus - 5 Nays: None The Secretary reported that, as requested by the Board, Occupational Health Service, has provided signed medical reports for Gary L. Guthrie and Daniel Jacque. The. Board had previously approved that they remain on Disability Retirement pending receipt of the signed reports. This item is now complete. It was moved by Trustee Kus, supported by Trustee Barkyoumb that the medical reports for Gary L. Guthrie and Daniel Jacque be 1 Police and Fire Retirement System March 17 , 1992 received and placed on fire and that they remain, as approved, on Duty Disability Retirement. Adopted by the following vote: Unanimously. The Secretary provided copies of Draft III of the modified ordinance language for prefunding of post-retirement Health Insurance Benefits and advised that Council has scheduled a public hearing for March 30, 1992 . Mr. McWilliams reviewed with the Board, the proposed usage of the contingency reserve fund with changes from Draft I and II that had gone to Council, advising that Draft II corrected the obsolete numbers reflecting, the withholding change from 5% to 4%. Mr. McWilliams informed the Board that Draft III contained a substantive change. The original concept that the Board had considered and approved was an 80/20% split of the contingency reserve fund. Eighty percent ( 80%) allocation to a post health insurance reserve and twenty percent ( 20%) to a members fund. The members fund was to be kept for increased benefits for retirees . The Secretary advised that, due to the passing of time, Council did approve a one time only increase to existing retirees, benefits using up the original 20% to be allocated to the Members Fund. Trustee McKane arrived at 9 : 46 A.M. A lengthy discussion with question & answers relative to a) There will never be a contingency fund again. b) The inability to provide future increases from the contingency fund for future retirees. c) The starting date eliminates the contingency fund and identifies the dollar amount. d) The Chairman explained that without the contingency reserve fund there wouldn' t be money to start the prefunding of health care. e) The Secretary explained that the Actuary' s Report of 9/19/89 recommended an economic assumption for the increased cost of health care of 16%-13%-11%-9%- 7% during the first 5 years and 5% thereafter and that the City follow a phase in of contribution as outlined on Page 16. This included a change in pension assumptions from 4% to 5% on wage growth and investment return from 7% to 8%. The real rate of return remains at 3%. f) The Chairman explained that the Health reserve as prescribed by the Actuary is subject to change as actual data is updated; however, it is the City' s responsibility to fund any additional costs on health care. and to keep it actuarially sound. g) Mr. McWilliams advised that he feels that the language in the ordinance already has sufficient language to require an annual actuarial study and that the secretary work with the Actuary re: health care premiums paid by the City for 1990 and 1991 . h) It was stated that the board' s recommendation would still require action on the ordinance by the City Council. 2 Police and Fire Retirement System March 17 , 1992 It was moved by Trustee Barkyoumb, supported by Trustee McKane that the prefunding of health care concept be approved by the Board as presented by the Secretary in (e) above. Adopted by the following vote: Unanimously Discussion was held with regards to the memorandum from Melvin McWilliams re: his recommended revisions to the Annual Earnings Certification Form for Disability Retirees. Mr. McWilliams advised that his revised form allows the retirement office to recognize any mathematical errors that might be made. The Secretary provided the Board with a Memorandum by Mr. McWilliams with revisions to the Annual Earnings Certificate. Discussion was held with regards to the previously reviewed form and the recommended changes that had been discussed at a prior meeting. It was moved by Trustee Barkyoumb, supported by Trustee McKane, that the form for income reporting for disability retirees be amended by changing Retiree Number to Social Security Number. Adopted by the following vote: Unanimously It was moved by Trustee Barkyoumb, supported by Trustee McKane that Line 12 be amended to reflect the footnote which makes it clear that the term "business income" includes income from a business that is only nominally in a spouse ' s name, but which is in fact operated in whole or in part by the retiree "without pay" . Adopted by the following vote: Unanimously It was moved by Trustee McKane, supported by Trustee Barkyoumb that the form for income reporting for disability retirees as amended with amendments be approved. Adopted by the following vote: Unanimously The Secretary indicated that as requested by the Board, he had sent the City Attorney a memorandum requesting an update on the securities lending contract. Further, he indicated that the requested contract has been received and a copy will be sent to the Bank for review and comment. After receiving the Bank' s comments the Board will review and approve final language. This item is to be placed back on the agenda for next month. The Secretary advised that he had sent a copy of the contract with occupational Health Services to the City Attorney and asked him to review the status of the medical director. He wasn' t sure that ample time had been given to the attorney' s office for them to conduct an adequate review by today' s Board meeting. Mr. McWilliams advised that he could not, at the present time, speak authoritatively- on the subject. He advised his feelings were that 3 Police and Fire Retirement System March 17 , 1992 the Board can accept the status, as is, until he can discuss the contract with the Secretary further. They will review the contract and assess whether or not Occupational Health Services is in compliance. This would be consistent with the Board' s fiduciary responsibilities. This item is to be brought back to the Board at next meeting. The Secretary read a letter from the Mayor to the Board of Trustees and presented a resolution for National Volunteers Week recognizing Chairperson John (Jack) B. Cushman. It was moved by Trustee Barkyoumb, supported by Trustee Kus , that the resolution recognizing Chairperson Cushman be adopted. Adopted by the following vote: Unanimously The Secretary reported that he had received one domestic relations order for Doyle Larner. Discussion followed relative to the Board' s previous adoption of the EDRO Procedures. The Secretary advised the Board that this Domestic Relations Order will be denied. Mr. Larner is retired and current legislation excludes EDRO' s if the individuals were already retired prior to passage of this legislation. The Secretary reported that we do not have any Eligible Domestic Relations Orders to report this month. The Secretary advised the Board that the list of Consultants had been narrowed to six and the names of the firms are to remain confidential until conclusion. The Secretary advised the Board that Lori Carpenter telephoned the retirement office concerning her plans to re-marry on March 27, 1992, and a copy of the marriage certificate is to follow. The widow' s benefit will be discontinued and re-allocated to the children in accordance with the Ordinance. The widow' s benefit will be reinstated when the children' s benefits expire. The Secretary reported to the board that MAPERS Conference will be at Shanty Creek on May 17th, 18th & 19th. Trustee Kus, Braun and Goodin will be attending. The Secretary advised Board members should let us know by the end of the week if anyone else plans to attend. It was moved by Trustee Kus, supported by Trustee Barkyoumb, that the Board Meeting for May be re-scheduled for May 12th instead of May 19th as scheduled. 4 Police and Fire Retirement System March 17 , 1992 Adopted by the following voter Unanimously It was moved by Trustee McKane, supported by Trustee Barkyoumb that Trustees Benavides and Luzynski be excused from the meeting. Adopted by the following vote: Unanimously It was moved by Trustee Barkyoumb, supported by Trustee Braun, that Mr. McWilliams through liquidation with Michigan file claim in proceedings and that the Secretary sign. Adopted by the following vote: Unanimously Trustee McKane left the meeting at 10 : 28 A.M. The Secretary advised that he and Mr. Rubley would be looking at alternative ways of phasing future contributions to the money managers taking into consideration matching outflow with inflow. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of February 29, 1992, and presented a brief overview of the transactions by the outside money managers . Discussion was held with regards to watching Lazard for six months and if their investment performance doesn' t improve put them on notice as recommended by Prudential-Bache. If they continue to under perform over the next year after being placed on notice, the Board should consider replacing them. Mr. Rubley advised that due to the size of the retirement system assets, we may, down the road, want to re-consider the current manager styles to make sure we are appropriately diversified. The Meeting adjourned at 10 : 48 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 5 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for February February 18, 1992 8th Floor Conference Room Tuesday 8 : 30 A.M. City Hall Lansing, Michigan The Board met in regular session and was called to order by the Chairperson, Jack Cushman, at 8: 40 A.M. Present: Trustee Barkyoumb, Braun, Cushman, Goodin, Kus, Luzynski and McKane - 7 Absent: Trustee Benavides - 1 Present: Stephen W. Duarte, Secretary; Ruby White, Lesley Ann Seldenright & Doug Rubley, Finance Dept. ; Melvin McWilliams, Chief Assist. City Attorney; and Ed Piloske, Internal Audit Dept. 1 It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the minutes of the regular meeting for January 21, 1992, be t approved. Adopted by the following vote: Unanimously. The Secretary reported 2 new members, 0 reinstatements, 0 refunds and 4 retired. Total Membership: 551. Refunds made since the last regular meeting amounted to $ . 00. Retirement allowances paid for the month of January, 1992 amounted to $551,716 . 95 total retirement checks printed for P&F System 390, total retirement checks printed for all three systems 856. f Trustee McKane arrived at 8 : 44 A.M. i The Secretary provided to the Board copies of the revisions which Mr. McWilliams, Chief Assist. City Attorney, made to the EDRO i procedures as requested by the Employees Retirement System Board. Mr. Duarte informed the Board the he would prefer that both Boards adopt the same EDRO procedures, however, he could work with two different procedures. Discussion was held by the Board. It was moved by Trustee Barkyoumb, supported by Trustee McKane that the Board adopt the EDRO procedures as amended. Further, the Board recognizes that the Secretary, With appropriate assistance, will make the determination as to whether a request is in fact an EDRO. The Board recognizes that the Secretary' s actions will not preclude affected individuals from appealing his decision to the Board. 1 Police and •Fire Retirement System February 18 , 1992 Adopted by the following vote: Unanimously. Mr. Duarte, Secretary, advised the Board that Lansing Occupational Medical Center (LOMC) will provide a letter having the original signature from the Medical Director with his recommendation for Mr. Gary Guthrie, Fire Dept. Disability Retiree, to remain on Duty Disability. Mr. Duarte advised that due to changes in personnel at LOMC, he will review and clarify the status of the Medical Director for the City of Lansing Retirement Boards. Discussion was held concerning the medical reports for Daniel Jacque, Police Department, and Terry Nadeau, Fire Department, Duty Disability retirees. It was moved by Trustee Barkyoumb, supported by Trustee Braun that the Board direct the Secretary to continue Daniel Jacque on Duty Disability retirement status as recommended by Dr. Spillmann, M.D. , and, 'if further review is necessary due to the possible change in the status of the Medical Director, the Board will take appropriate action upon notification. Adopted by the following vote: Unanimously. The Chairperson read aloud Section 9 (e) of the Summary of the Police and Fire Retirement System booklet re: "Officers of Retirement Systems" concerning the status of the Medical Director. It was moved by Trustee Kus, supported by Trustee Barkyoumb that the Board direct the Secretary to continue Terry Nadeau, Fire Department, Duty Disability retiree, on Duty Disability retirement status as recommended by Dr. Spillmann, M.D. , and, if further review is necessary due to the possible change in status of the Medical Director, the Board will take appropriate action upon notification. Adopted by the following vote: Unanimously. The Chairperson addressed the item on the Certification of Annual Earnings form received by disability retirees. The Board requested that the Retirement number be changed to read the Social Security number, and asked if it is necessary that a Notary Public be required to sign the form. Mr. McWilliams, Chief Assist. City Attorney advised that this new form is presently on his desk for review, however, he has not yet had an opportunity to do so. This item is to be placed on the. March agenda. It was moved by Trustee McKane, supported by Trustee Luzynski that the Board excuse Trustee Benavides from the meeting. 2 l Police and ,Fire Retirement System February 18 , 1992 Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of January 31, 1992, and presented a brief ! overview of the transactions by the outside money managers. Mr. Rubley also handed out two other items to the Board members; 1) article from Pensions & Investments magazine entitled "M.D. Sass faces outflow of assets, clients, and 2) memorandum to clients from Martin D. Sass. In addition, Doug gave an update on the contract with NBD for Security Lending advising that he met with Mr. Knot, City Attorney, however, has not yet received any further information. The Board directed Mr. Duarte, Secretary, to send a letter to the City Attorney concerning Security Lending, and this item is to be placed on next month' s agenda. Mr. Rubley informed the Board that $517 , 100 was transferred from the managers in January to meet payroll costs, reviewed the summary on page 1 of the in-house cash and investments for the previous year, and touched upon the asset allocation summary on page 2. Mr. Rubley added that he had a conversation with M.D. Sass and he was advised that the Appeals Court had not yet heard the case on the Executive Life bonds, therefore, they did not know if the decision by the lower court would be over ruled. In addition, Mr. Rubley stated that 17 firms responded to the RFQ' s for the Performance Evaluation Manager and that he has reviewed 3/4 of the responses and hopes to have a recommendation of approximately 3 or 4 firms for the Board to review this coming month. Trustee Luzynski asked where we were on the pre-funding of health care. There will be an update of this item for next month' s agenda. The Meeting Adjourned at 9 : 34 A.M. Stephen W. Duarte, Secretary Police & Fire Retirement System 3 OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting for January January 21, 1992 8th Floor, Conference Room Tuesday 8 : 45 A.M. City Hall Lansing, Michigan Present: Trustee Benavides, Barkyoumb, Cushman, Kus, and Luzynski -5 Absent: Trustee Braun, Goodin and McKane - 3 Present: Jan Lazar, Deputy Director of Finance/Director of Budget & Management; Ruby White, Doug Rubley and Lesley Ann Seldenright, Finance Dept. ; Ed Piloske, Internal Audit Dept. It was moved by Trustee Benavides, supported by Trustee Barkyoumb that the Board re-elect Trustee Jack Cushman as Chairperson and Trustee James Kuz as Vice-Chairperson to the Police and Fire Retirement System Board of Trustees for the calendar year 1992 . Adopted by the following vote: Unanimously It was moved by Trustee Barkyoumb, supported by Trustee Luzynski that the minutes of the regular meeting for December 10, 1991 and the joint Board meetings for December 10, 1991 and December 12 , 1991, be approved. Adopted by the following vote: Unanimously. The Secretary reported 1 new member, 0 reinstatements, 2 refunds and 0 retired. Total Membership: 552. Refunds made since the last regular meeting amounted to $1, 391. 54 . Retirement allowances paid for the month of December, 1991, amounted to $546 , 543 . 28 . Total retirement checks printed for P&F System 386 , total retirement checks printed for all three systems 850 . It was moved by Trustee Luzynski, supported by Trustee Kus that the application for Regular Age and Service Retirement for Walter D., Barnes, Fire Department, be approved he having qualified with 26 years 2 months service credit, age 52, effective January 14 , 1992, and that the Secretary make the necessary transfer of funds. Adopted by the following roll call vote: Yeas: Benavides, Barkyoumb, , Cushman, Kus and Luzynski - 5 Nays: None It was moved by Trustee Kus, supported by Trus-Ke B uW4nA I QWXthe Board table until next month' s meeting the item on the approy_a1� �f ;���g�J'jV i Police and Fire Retirement System January 21, 1992 the EDRO procedures when Mr. Duarte and the Attorney would be available to discuss this item. Adopted by the following vote: Unanimously. Discussion was held concerning the medical report for Gary L. Guthrie, Fire Duty Disability retiree. Trustee Luzynski addressed the fact that per the doctor ' s re-examination Mr. Guthrie did not appear to make any real effort to improve his condition. Mrs. Lazar added that the City cannot force a retiree to actually make the effort to help themself. In addition, Ms. White, Retirement Technician, indicated to the Board that the report received from the Medical Director did not appear to have an original signature and the Board agreed there should be one. The Board requested that Mr. Duarte, Secretary, review the matter as to whether the Board could and should retain Dr. Chambers as the Medical Director to the Board for Duty Disability cases, as she has stepped down from her position as Medical Director, but remains a consultant, or appoint Dr. Spillmann as the Board' s Medical Director. Mrs. Lazar advised that Ms. Karen Brewington, Personnel Director, originally indicated that there had been a change in the City' s doctor. It was moved by Trustee Barkyoumb, supported by Trustee Kus that the Board approve Mr. Gary L. Guthrie to continue on Duty Disability retirement subject to the pending receipt of a signed original medical report. Adopted by the following: Unanimously. Ms. White informed the Board, that in compliance with their request, Mr. Duarte, Secretary, sent a letter to Ms. Michelle E. Chacon, former Police Dept. employee, who received a refund of her accumulated contributions. Mrs. White advised that Mr. Duarte' s letter had quoted the codified ordinance of Lansing governing the Police & Fire Retirement System concerning an employee who withdraws their contribution and then returns to the system. Ms. White indicated a response had been received from Mr. Jerry Mires, Police Duty Disability Retiree, stating that his retirement allowance had been included on line 7 (wages, salaries, tips, etc. ) of the Annual Earnings Report for calendar year ending December 31, 1990, therefore, he is not over the allowable earnings prior to the offset. Ms. Lazar advised the Board that Daniel Jacque, Police Dept. , and Terrell Nadeau, Fire Dept. , were scheduled with Dr. Scott Spillman, Medical Director, for a one year medical examination. Chairperson Cushman stated that this is Board policy to comply with the City Charter. 2 Police and Fire Retirement System January 21 , 1992 Ms . White informed the Board that the Certification of Annual Earnings form received by Disability Retirees has been revised by Mr. Goodin, City Treasurer, and asked the Trustees to review the new form. The Board requested that the Retirement number be changed to read the social security number, and they also discussed the fact that a Notary Public was required to sign the form. In addition, the members of the Board requested that the form be reviewed by the City Attorney' s office for recommendation. It was moved by Trustee Luzynski, supported by Trustee Barkyoumb that Trustee Braun, Goodin, and McKane be excused from the Board meeting. Adopted by the following vote: Unanimously. Mr. Rubley distributed to the Board copies of the portfolio summary for funds evaluation as of December 31, 1991, and presented a brief overview of the transactions by the outside money managers. Mr. Rubley informed the Board that the cash contributions of $3 , 060,000 were made to ANB Index Manager, funds were transferred from the managers in the amount of $538 , 000 in November and $475, 000 in December, and that $113 , 470 in assets are held in- house. Also, Mr. Rubley stated he had deleted a page on Rollert and added a new page on Asset Summary of External Managers . Doug informed the Board: 1) that both the equity and bond market did extremely well this past month, 2) that M.D. Sass (Executive Life bonds were appealed and still at 41 cents on the dollar. Ms. Lazar added that she had just learned that Metropolitan Life bought out a substantial segment of Executive Life obligations) , 3 ) that the Board should take a look at Lazard Freres, value manager, after the recession is over, as normally a value manager' s greatest contribution is the early stages of an economic recovery, and 4) compared ANB Index managers to the S&P index. In addition, Mr. Rubley stated that he had received 17 responses for the RFQ' s for the Performance Evaluation Manager and will be narrowing them down to the most qualified for the Board to review. He will be looking at such areas as: 1) how long have they been in business, 2 ) how long have certain people worked for the organization, 3 ) their verbal presentation, 4) how do they evaluate themself, 5) looking at mathematical background, etc. Trustee Benavides left the meeting at 10 : 01 A.M. and returned at 10: 05 A.M. Mrs. Lazar left the meeting: Mr. Rubley discussed prefunding of health care adding that last year rates went up 15%. This year rates will be expected to rise 3 Police and Fire Retirement System January 21 , 1992 another 15 0, and that $441. 00 per month per family is the basic cost for coverage of health care. The Meeting Adjourned at 10 : 13 A.M. W Stephen W. Duarte, Secretary Police & Fire Retirement System A 4