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HomeMy WebLinkAbout2009 mins Police and Fire Retirement System FINAL OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting January 20, 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI ;;.. The Board met in regular session and was called to order at 8:33 a.m. Present: Trustees Hecksel, Holliday, Kraus, Oleson, St. Aubin, Wood — 6. =� Absent: Trustee Benson, Bernero c r _ r- Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Attorney;Scott Smith, Clark Hill Law Office (representing the Law Department). It was moved by Trustee St. Aubin and supported by Trustee St. Oleson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of December 16, 2009. Adopted by the following vote: 6 — 0. Secretary's Report. 0 new fire member(s), 2 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 478. 1 death(s). JoAnn Miner, Fire, died 12/20/2008, age 81, spouse of retiree. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of December, 2008 amounted to $1,789,597.65. Total retirement checks printed for the P&F System: 628. Total retirement checks printed for both systems: 1420. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0 It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve the application for Regular Age and Service Retirement: Donald P. Knechtel, Police Department, 17 years, age 55, effective January 1, 2009. (From Deferred) Adopted by the following vote: 6 — 0. Trustee Oleson requested an opinion from legal counsel regarding the Board's ability to not concur with the Medical Director's report. There were no requests for Non Duty Disability Retirements. Regular Meeting January 20, 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no requests for Refund of Accumulated Contributions. It was moved by Trustee Wood and supported by Trustee Hecksel to excuse Trustee Benson from the meeting. Adopted by the following vote: 6 — 0. Karen Williams reported to the Board regarding a One Day Seminar sponsored by MAPERS. Topics included were securities litigation and hedge funds. It was moved by Trustee Kraus and supported Trustee St. Aubin to nominate Trustee Bruce Holliday as chairperson of the Police and Fire Retirement System Board. Adopted by the following vote: 6 — 0. It was moved by Trustee Wood and supported by Trustee Kraus to close the nominations and elect Bruce Holliday as chairperson. Adopted by the following vote: 6 -0. It was moved by Trustee Oleson and supported by Trustee Hecksel to nominate Trustee St. Aubin as vice chairperson of the Police and Fire Retirement System Board. Adopted by the following vote: 6 — 0. It was moved by Trustee Wood and supported by Trustee Kraus to close the nominations and elect Trustee Brad St. Aubin as chair. Adopted by the following vote: 6 — 0. The Police and Fire Retirement Board approved the following subcommittee assignments: Disability Committee - Hecksel, Holliday, Kraus, St. Aubin Education Committee - Oleson, St. Aubin, Wood Investment Committee - Benson, Hecksel, Holliday, Kraus, St. Aubin Special Projects Committee - Holliday, Kraus, Oleson, St. Aubin, Wood Ex-officio Jack Roberts Joint Ad Hoc Committee on Health Care — Benson, Hecksel, St. Aubin, Wood Regular Meeting January 20, 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams distributed the Gabriel, Roeder and Smith (GRS) Actuary Reports. GRS will present the report at a later meeting. Karen Williams also distributed and provided an update for the Minute Master project by GRS. Gabriel, Roeder Smith has provided a link for the electronic version of Minute Master. Trustees and those authorized to view the minutes and information will need to have a password. Karen Williams will provide a list to ERS of trustees and persons who will initially have access. Attorney John Schneider provided an update of the Qualified Plan Documents. The draft of the document has been submitted to the City Attorney's Office for review. Trustee Wood expressed concern that the Board did not also receive a copy of the report and the length of time to update the ordinance. Trustee Oleson also requested a copy of the report for review. Attorney John Schneider reviewed that Clark Hill delivered the Plan to the City Attorney by February 1, 2009, as expressed in the outline submitted to the Board. Trustee Wood requested a date certain that the plan document would be available to the Police and Fire Retirement Board. Attorney Kenneth Lane distributed the Beneficiary Nomination Form for trustees review. Attorney Lane provided an overview of the changes to the form. The Form was referred to the Special Projects Committee. Attorney Schneider suggested to that the retirement plan rename the plan to Police Officers and Firefighters. Trustee Kraus reported to the Board that the Joint AdHoc Health Care Subcommittee will meet to put together a draft for the actuary bid process. Karen Williams distributed and reviewed the December Securities Lending Account Report. It was moved by Trustee Oleson and supported by Trustee Kraus that the Police and Fire Retirement meeting adjourn. Adopted by the following vote: unanimously The meeting adjourned at 9:11 a.m. Minutes approved on V Q009 Jeri Amb ose, Secretary 1 P 'ice & ire Retirement System Ekuce olliday, C airperson Polic` & Fire Re rement System CITY OF LANSING SYSTEM POLICE & FIRE and ERS RETIREMENT OFFICIAL MINUTES. Amended January 20, 2009 Joint Meeting Tuesday, 9:.15 a;m. Council Conference Room 10th Floor City Hall =' Lansing, MI -} The meeting was called to order at 9:15 a.m. J the Police and Fire Board was present. A quorum of Trustees present: (Police & Fire), Holliday, Kraus, Hec Wood les6on, St. Aubin, Wood — 6. (ERS), Antekeier, Dedic, Korkoske, Kraus, McCaffery, Other presents: John Jackson, Asset Consulting Group, I Schneider,KCla k Hill Law Finance Office Department; Attorney Kenneth Lane, Attorney (representing the City Attorney's Office); Karl L. Knas, Portfolio Manager, NorthPointe Capital Fund. on Mr. Karl L. Knas, Portfolio Manager, NorthPointe Capital presided a pre ded Police and IF reoReteemenit Growth Strategy for the City of Lansing General Employe roach, the City of Systems. Mr. Knas provided an overview of the Growth Research App s year, and the Portfolio Outlook. Mr. Knas Lansing Fund Performance over the previou reviewed the Small Cap Growth Portfolio Characteristics and an Organizational update. Mr. John Jackson led a discussion of the NorthPointe performance loflthe�nvestme t funds held by the other investment managers.. Mr. Jackson also provided a broad market pert City of Lansing General Employees and the Police and ire Retirement ng System. recommendationsr. Jackson distributed and overviewed an Asset Consulting Group both boards. own in the ty Mr. Jackson reported to the Boards that as a result of the er'alllf'cant d aboveoits ttarget allocaton markets, the fixed income allocated has increased materially Specifically,,the assets managed by MD Sass exceeded its target allocation by more than 5%. Therefore, ACG recommends portfolio re-balancing. It was moved by Trustee Oleson and Trustee Hecksel to approve the transfer of$7 million or approximately 3.3% of the value of the portfolio from MD Sass to the large cap equity portfolio managed by BGl for the Police and Fire Retirement System. Adopted by the following: 5 — 0. Joint Meeting Council Conference Room January 20, 2009 10th Floor City Hall Tuesday, 9:15 a.m. Lansing, MI It was moved by Trustee Wood and Supported Page 2 million or approximately 2.6% of the value of the portfolio from the large cap equityg y rustee Kraus to approve the transfer of$4 portfolio managed b BGI for the Employees Retirementt System.Sass to the Adopted by the following: 5 — 0. Mr. John Jackson reported that Northern Trust has again implemented for those clients invested in its S&P 500 Index Fund with Securities L Therefore, ACG recommends a cash only divestment from t anew redemption policy ending (collective fund). (with securities lending). he Northern Trust S &P Index Fund It was moved by Trustee Oleson and supported divestment from the Northern Trust S & Pdex Fund by r(with secuustee rities to a Proceeds in the non-lending equivalent index fund for the Po ice approve a cash only Trustee Wood offered a friendly amendment that th lending) and invest the review by legal counsel. e approval would rrbe coRetntingent gen rementSystem. p a Adopted by the following vote: 5 — 0. It was moved by Trustee Korkoske and moved by Trustee Kraus to divestment from the Northern Trust S & P Index Fund (with securities I proceeds in the non-lending equivalent index fund for the Employeesapprove a cash only ending) and invest the Trustee Wood offered a friendly amendment that the approval w ou d Retirement System. review by legal counsel. be contingent upon a Adopted by the following vote: 5 — 0. Mr. John Jackson reported that Northpointe Capital has offered a performance-based fee schedule that provides for a significant savings from the existing schedule It was moved by Trustee Hecksel and Supported Proposal provided it in no way impacts he ability to terminate by Trustee ethe ison nvestment the Northpointe agreement at any time. Trustee Wood offered a friendly amendment that rthe acceptance of the proposal would be contingent upon a review by legal counsel. cceptance of Adopted by the following vote: 5 — 0. It was moved by Trustee Kraus and Supported Proposal provided it in no way impacts b he ability to terminate nateothetion accept the Northpointe agreement at any time, subject to legal counsel review. vestment management Adopted by the following vote: 5 — 0. Joint Meeting January 20, 2009 Council Conference Room Thursday, 9:15 a.m. 10th Floor City Hall Lansing, MI Page 3 Mr. John Jackson led a discussion with both Boards regarding Trustee Education and scheduling a seminar with Hedge Fund Managers. Mr. Jackson suggested a workshop in Lansing for the Boards and other area clients of ACG to receive in-depth education regarding hedge fund issues. Mr. Jackson will schedule a time during the first couple of weeks of March. The Meeting adjourned at 11:35 a.m. Minutes approved on / 7 4b00 Jer A rose, Secretary t 1R T Robert Antekeier, Chairperson Bruce Holliday, Chairperson Employees Retirement System Fire and Police Retirement System Asset hsulting Group, lnr. 231 South Bemiston Ave,Suite 1400 St. Louis, MO 63105 314-862-4848 MEMORANDUM DATE: January 20, 2009 TO: City of Lansing Police & Fire Retirement System Board of Trustees City of Lansing Employees' Retirement System FROM: John Jackson, Asset Consulting Group RE: ACG Recommendations This memo documents Asset Consulting Group's recommendation made on January 20.2009. 1. As a result of the significant downturn in the equity markets, the fixed income allocation has increased materially above its target allocation. Specifically, the assets managed by MD Sass exceed its target allocation by more than 5%. Therefore, ACG recommends the following: ■ Police & Fire: Transfer $7 million or approximately 3.3% of the value of the portfolio to the large cap equity portfolio managed by BGI. ■ ERS: Transfer $4 million or approximately 2.6% of the value of the portfolio from the MD Sass portfolio to the large cap equity portfolio managed by BGI. 2. Northern Trust has again implemented a new redemption policy for those clients invested in its S&P 500 Index Fund with Securities Lending (collective fund). ■ As soon as practicable, facilitate a cash only.divestment from the Northern Trust S&P 500 Index Fund (with securities lending) and invest the proceeds in the non-lending equivalent index field. 3. Northpointe Capital has offered a performance-based fee schedule that provides for a significant savings from the existing schedule_ ACG recommends that the Lansing plans accept the Northpointe proposal provided it in no way impacts the ability to terminate the investment management agreement at any time. OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM February 17, 2009 Regular Meeting Tuesday, 8:30 a-M- Council Conference Room 10th Floor, City Hall `' Lansing, MI -77 ^-, The Board met in regular session and was called to order at 8:37 a.m. " =•• , on, Hecksel, Holliday, Kraus, Oleson, St. Aubin, Woo Presen t: Trustees Bens d —.7; Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of January 20, 2009. Adopted by the following vote: 7 — 0. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the Official Minutes of the Joint Police and Fire Retirement S stem and Employees Retirement System Boards of January 20, 2009 with Adopted by the following vote: 7 — 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), .0 ship: 476. 2 death(s). Robert transfers, 2 retired. Total: Active member N:�-Kelly', Fire, ° • Michael J. Wahl, Police, died 1/.7/2008, died 1/16/2009, age 67, spouse to receive 50 /°, age 61, beneficiary to receive 50%. Refunds made since the last regular meeting nth of Jahuary*, amount ed to $ 0.00. Retirement allowances paid for the mOthe P&F System: 6300. amounted to $1,818,543.67: edafretirement etboth systems:checks 1423ed for Domestic relations order Total retirement checks print 0. Eligible domestic relations orders received: 0. Domestic relations orders pending: 9 certified: 0. It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the application for Regular Age and Service Retirement: Carl A. Yarsevich, III, Fire Department, 25 years and 11 months, age 52, effective January 1 , 2009. Adopted by the following vote: 7 — 0. Regular Meeting Council Conference Room February 17, 2009 10th Floor, City Hall Tuesday, 8:30 a.m. Lansing, MI Page Two Karen Williams reported that the Retirement Office received a letter from the current spouse of deceased member, Mr. Michael Wahl, retired police officer. Mrs. Wahl's attorney requested a response from the City Attorney's Office in regards to Mr. Wahl's pension and death benefits. Ms. Williams explained that Mr. Wahl's ex-spouse was the beneficiary of record at the time of retirement and she was also listed as the beneficiary for his life insurance. Therefore, the ex-spouse not the current spouse was entitled to the survivor benefits. Attorney Ken Lane stated that the City Attorney's office had spoken to Mrs. Wahl's lawyer and would draft to response. Attorney Ken Lane reviewed the legal opinion provided to the Board regarding disability determination of the medical doctor's report. Attorney Lane provided an explanation of ordinance and the board's ability to concur. Attorney Lane advised that the Board was permitted to seek a second opinion to provide to the medical director for review in the disability determination. Attorney Lane will review the resolutions and agreements under which the Police and Fire Retirement Board appointed as its medical director. The Board discussed the options h I a available regardin ty of Michigan concurring with the medical doctor's report, g t There were no requests for Non Duty Disability retirement. There was one request for Refund of Accumulated Contributions. Mr. Justin Purvis, Fire Department was not vested, terminated from the City, January 2009, and has requested his retirement contributions. It was moved by Trustee Hecksel and sup orted by Truste Justin Purvis' request for Refund of Accumulated Cont ibutionse Oleson to approve Mr. Adopted by the following vote: 7— 0. Karen Williams distributed information for the Asset Consulting Group Trustee Training and Hedge Fund Forum, March 11, 2009. The trustee training will be held first, at 10:00a.m., followed by the Hedge Fund Educational forum. Mr. Robert Hecksel provided a report of the One Day MAPERS Conference held in Dearborn. Mr. Hecksel reviewed the information he learned regarding hedge funds. February 17, 2009 Regular Meeting Tuesday, 8:30 a.m. Council Conference Room 10th Floor, City Hall Page Three Lansing, MI Karen Williams provided a Retirement Web Site Update. proposliams ed for t .phe Isiteed Ms. the items that are currently on the site and the items that are Williams will work with Spartan Internet to upgrade site. linkling hes. llactu ry site to has cthe Gabriel, Roeder, Smith (GRS) and company regarding retirement web site. GRS has requested directl legal aeview items thecan GRS webste by o the general public. Trustee Wood requested that 9 determine what items should be protected. Trustee Wood also requested that the Retirement web site be placed on the City s frontpage. Attorney Ken Lane updated the Board regarding heQualified but he Plan pla Do II be ready foe City Attorney's Office had not completed the documents, wr review at next month's meeting. Trustee Wood requested that Attorney Lane provideauweekly alified update lan Documents ntact with the City's Attorney office regarding the status of the Q Karen Williams distributed the City Travel Policy. Attorney eywit Lane reviewed the current Board's Policy that accepts the current City TravelY It was moved by Trustee Wood and supported by Trustee Kraus to receive the City Travel Policy, dated 12/28/2008 as an addendum to the Board's Travel Policy. Adopted by the following vote: 7 — 0. Karen Williams reported to the Board that the Retirement Office received a letter of re- appointment for Carol Wood as the City Council Trustee. itary Trustee Oleson requested clarification regarding requestedthe the City Att purchase of lorneytrev ew of ime and universal buy-in of service credits. Karen William both purchases of time in regards to health care and pwhentdefeered nt pmon es ension adjustments. Trustee Oleson also requested a clarification o can be used to purchase time. The City Attorney's office will review the various Police and Fire contracts to provide a response. Trustee Robert Hecksel inquired to the Board regarding the Income Verification process for duty disability. Karen Williams reviewed the process for Trustee Hecksel. Trustee Hecksel expressed concern regarding verifying the income. Trustee Wood requested if the Retirement Office has are pies o the m n legal pinio masters. Karen Williams explained that the older leg pin There are copies of the current legal opinions in the Retirement Office and minutes masters. Regular Meeting February 17, 2009 Council Conference Room 10th Floor, City Hall Tuesday, 8:30 a.m. Lansing, MI Page Four Trustee Kraus updated the Board regarding the Actuary Bid Process. Trustee Kraus will forward a draft to committee members to review and make suggestions and amendments. Trustee Wood updated the Board regarding the Joint AdHoc Health Care Subcommittee. Trustee Wood reported that the subcommittee will meet next month to draft a survey that can mailed to retirees regarding health care issues. Karen Williams distributed and reviewed the January Investment Report. The meeting adjourned at 10:01 a.m. Minutes approved on 3 -f 7- 24)c)� Am rose, Secretary ' P ice & Fire Retirement System 4Bruceolliday, C airperson re Reti ment System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting April 21, 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:36 a.m. Present: Trustees Hecksel, Holliday, Kraus, Oleson, Wood — 5. Absent: Trustee Benson, Bernero, St. Aubin Others: Mark Colby, Thomas Korkoske, Karen E. Williams, Finance Department; Attorney Ken Lane, Attorney John Schneider, Clark Hill Law Office (representing the Law Department);Mr. Bryan Epling, Chris Lake, IAFF Local 421 , Lansing Fire Department. It was moved by Trustee St. Aubin and supported by Trustee Oleson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of March 17, 2009 as amended. Adopted by the following vote: unanimously. Trustee Holliday opened the floor for public comments on the agenda. Mr. Bryan Epling, representing IAFF Local 421 expressed to the Board his concern regarding the Retirement Ordinance review and draft. Mr. Epling stated that he spoke with the City Attorney's Office and met with the Mayor regarding substantive changes in the Ordinance. He spoke of 25 distinct proposed changes made by Clark Hill. Mr. Epling expressed concern that the language and changes within the draft document before the Retirement Board was not requested by either the Board, or(the <City._ Administration. Mr. Epling expressed concerned about who provided the direction ..for;-= the current draft document and urged the Board to not take up the submitted:-drag-for; review. - Secretary's Report. i= ;; 1D - � N 0 new fire member(s), 0 new police members, 0 reinstatement(s),- 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 475. 0 death(s). Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of March, 2009 amounted to $1,768,429.61. Total retirement checks printed for the P&F System: 630. Total retirement checks printed for both systems: -.1,421, Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting April 21 , 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no applications for Regular Age and Service Retirements. There were no requests for Non Duty Disability Retirements. There were no refunds of accumulated contributions. It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse Trustee Bradley St. Aubin from the Police and Fire Retirement Board Meeting. Trustee Oleson inquired to the Board about clarification regarding the policy on excusing of members who have not requested an excused absence. Trustee Kraus expressed concern that before action is taken, the membership should be made aware that this policy will be enforced more stringently. Trustee Kraus stated that the Ordinance does not describe what is considered an excused absence. The Board discussed the ordinance language regarding Board membership attendance and unexcused absences. Adopted by the following vote: 5 — 0. It was moved by Trustee Oleson and supported by Trustee Wood to excuse Trustee Edward Benson from the Police and Fire Retirement Board Meeting. Adopted by the following vote: 5 — 0. Karen Williams distributed MAPERS confirmations and reported to the Board that there hotel registrations had been forwarded by email. Karen Williams announced that there were four dinner invitations extended to the Police and Fire and the Employees Retirement System Board. Trustee Bruce Holliday reported to the Board that he spoke with Mr. Robert Antekeier of the Employees Retirement Systems about the invitations. Trustee Holliday suggested that the Police and Fire members have representations at both the Artio Global and the Invesco dinners. The Police and Fire Board requested that Mr. Thomas Korkoske addressed the membership and answer questions regarding Health Care Prefunding. Mr. Robert Oleson inquired about the amount of money allocated for Police and Fire health care prefunding. Mark Colby, Payroll and Benefit Supervisor, also provided answers to inquiries and reported that as of 12/31/2008 approximately $16,100,000 was on the general ledger to the prefunding of health care. Mr. Thomas Korkoske reported to the Board that the current year City allocation would not be made until the end of the fiscal year in June. Mr. Korkoske reviewed with the Board how the health care is funded, and that°the prefunding .started approximately fifteen years ago. Trustee-Wood expressed concern regarding how the funds are invested. Regular Meeting April 21 , 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Mr. Korkoske explained that the contribution is made once a year and the interest allocated once per year. Mr. Colby further explained that interest is not allocated and investment performance is not tracked on a monthly basis. Mr. Robert Oleson requested a current financial statement and liability for the health care pre-funding. Karen Williams distributed the Gabriel, Roeder, Smith and Company fee for updating Minute Master. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Gabriel, Roeder, Smith Minute Master fee, not to exceed $2,600. Adopted by the following vote: 5 — 0. Karen Williams updated the Board regarding the Duty Disability Income Verifications. Duty Disability retirees received letter in February requesting verification for their income by April 30. Sixteen retirees did not report their income. The Board requested that a second certified letter be mailed to those retirees who did not report, providing them with two additional weeks to report before action is taken regarding their pensions. Trustee Kraus provided a Disability subcommittee report to the Board. Trustee Kraus reviewed the disability reexamination policy and provisions for hiring a private investigator. Trustee Wood discussed having 2-3 pre-approved firms that can be used for the investigations. Attorney Ken Lane advised that the policy has a clause that would allow firms to have an on-going obligation to disclose investigators who are currently or were formerly employed as police officers, fire fighters, law enforcement officials or fire officials in Ingham, Eaton, Clinton counties. Trustee Wood expressed concern regarding confidentiality of members being investigated and asked if the Board can meet in closed session when discussing investigations. Karen Williams distributed a memo from Dr. Roth to the Board regarding the University of Michigan Hospital decision to no longer conduct disability evaluations. Dr. Victor Roth is in the process of locating another space to continue to perform the evaluations for the City of Lansing. Attorney Kenneth Lane advised the Board that the City of Lansing appointed Dr. Roth by resolution. The Board did not have a contract with the University of Michigan or Dr. Roth. Attorney John Schneider provided a color-coded draft of the Retirement Ordinance that indicates the changes: green means moved language, red means deleted, blue means added, purple is at the top of a session and shows where it was moved. Attorney Schneider provided a narrative of the draft and a memo on changes. Attorney Schneider reviewed the work plan and the instructions given to Clark Hill regarding the comprehensive review of the Qualified Plan Documents. Clark Hill was,requeste.d.to provide suggestions that may improve the .O.rdinance and suggestions -that.-would comply with current law. Regular Meeting April 21, 2009 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Jack Roberts is the project manager and Clark Hill's contact for the project within the City Attorney's Office. The City Attorney has not responded to the first draft yet. Trustee Wood will provide to Clark Hill documents regarding the issues recommended by Doug Rubley, Attorney Jack Roberts and the Board and their inclusion in the draft. Trustee Kraus suggested that the draft be referred to subcommittee for review. It was moved by Trustee Oleson and supported by Trustee Hecksel to refer the draft ordinance to the Special Projects subcommittee. Trustee Wood offered a friendly amendment to also refer a copy of the document worked on by Doug Rubley, Attorney Jack Roberts and the Police and Fire Retirement Board. Adopted by the following vote: 5 — 0. Attorney Ken Lane provided and reviewed the current Eligible Domestic Relations Order (EDRO) model forms. Attorney Lane provided the previous form from 1999 and the newer form of August 2000. He also provided a memo that discussed the differences between the two forms. Attorney Lane requested that the Board members review the EDRO form for approval at a later meeting. Trustee Wood updated the Board the draft proposal for the actuary bid process was to be forwarded to legal counsel for review. Trustee Wood updated the Board that the Joint AdHoc Health Care subcommittee will meet May 8rn Trustee Holliday updated that Board that he spoke with John Jackson of Asset Consulting Group regarding Hedge Funds. Asset Consulting Group will be sending a memo to Board members regarding firms that may be of interest to the trustees. The Board discussed amending the investment policy to allow the Board to invest in hedge funds, if needed. Trustee Wood reported to the Board that she requested that the Employees Retirement System draft a letter in support of the OPEB legislation to the Michigan representatives. Trustee Wood requested a similar letter from the Police and Fire Retirement System. It was moved by Trustee Wood and supported by Trustee Oleson to send a letter of support of the OPEB legislation to Michigan legislative Lansing representatives. Adopted by the following vote: 5 — 0. Karen Williams distributed and reviewed the March Investment Report. It was moved by Trustee Hecksel and supported by Trustee Oleson to adjourn the meeting. The meeting adjourned at 10:31 a.m. Minutes approved on 5 12 2OU� Jer m se, Secretary ' Po ce & Fire Retirement System Bruce HoIlloy, Cha person Police & Fire Retirem nt System CITY OF LANSING POLICE & FIRE'and ERS RETIREMENT SYSTEM OFFICIAL MINUTES (AMENDED) Joint Meeting May 21,:2009 Council Conference Room Tuesday, 9:15 a.m._. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:24 a.m. A quorum of both Boards were present. Trustees present: (Police & Fire), Hecksel, Holliday, Kraus, Oleson, St. Aubin, Wood — 6. (ERS), Antekeier, Dedic, Kraus, McCaffery, Singleton, Wood — 6. Other presents: John Jackson, Tom Janisch, Asset Consulting Group, Inc. (ACG); Karen Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the City Attorney's Office). Mr. John Johnson provided an overview of the Quarterly Performance of the Police and Fire Retirement System and the Employees Retirement System for the period ending March 31, 2009. Mr. Johnson reviewed the Market Environment, the systems' individual investment and an analysis of the equity, fixed and real estate markets. Mr. Johnson provided an update on the Boards' Security Lending Program at Northern Trust. Asset Consulting Group has recommended that no changes be made to the portfolios at this time. Mr. Tom Janisch led a discussion of the Hedge Fund and provided an overview of the Long Short Fund of Funds Manager Search process. Mr. Janisch reviewed hedge fund investment strategies, the manager selection overview, and a qualitative and quantitative analysis of the individual managers. Asset Consulting Group provided five hedge fund of funds investment companies for the Boards' review and consideration. Mr. Janisch provided a firm information summary of Attalus, Common Sense, Grosvenor, K2 Advisory and Private Advisors. Mr. Janisch suggested that hedge funds will further diversify the Boards' portfolio and make it less volatile. The meeting adjourned at 11:39 a.m. Minutes approved on J mbrose, Secretary 7e Robert Antekeier, Chairperson Bruce Holl'ida , Chairperson erson p Y p Employees Retirement System Fire and Police Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting June 12, 2009 City Council Chambers Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:34 a.m. Present: Trustees Benson, Hecksel, Holliday, Kraus, Oleson, St. Aubin, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee St. Aubin and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of May 12, 2009. Adopted by the following vote: 7 — 0. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees Retirement System Board Meeting of May 21, 2009. Adopted by the following vote: 7 — 0. _ Secretary's Report. 1 new fire member(s), 0 new police members, 0 reinstatement(s), 0 {: refund(s), 0 transfers, 1 retired. Total: Active membership: 475. 3 death(s). Mary E. Gurecki, Fire, died 2/27/2009, age 87, spouse of retiree; Adah Rainwater, Police, died 5/22/2009, age 88, spouse of retiree; Donna Lawson, Police, died 5/19/2009, age 74, spouse l of retiree. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of May, 2009 amounted to $1,766,357.96. Total retirement checks printed for the P&F System: 627. Total retirement checks printed for both systems: 1418. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting June 16, 2009 City Council Chambers Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee St. Aubin and supported by Trustee Kraus to approve the following Application for Regular Age and Service Retirements: Stephen D. Klein, Police Department, 23 years, 3 months of service credits, age 55, effective June 13, 2009. Adopted by the following vote: 7 — 0. It was moved by Trustee Oleson and supported by Trustee Kraus to approve the following Application for Regular Age and Service Retirements: Debra E. Pacheco, Fire Department, 25 years of service credits, age 48, effective June 13, 2009. Charles W. Peterson, Fire Department, 25 years of service credits, age 49, effective June 13, 2009. Gregory Martin (from Deferred), Fired Department, 13 years of service credits, age 55 effective June 1, 3009 (Purchased 3 years of universal buy-in of time) Adopted by the following vote: 7 -0 There were no requests for Non Duty Disability Retirements. There were no refunds of accumulated contributions. Karen Williams announced dates for MAPERS Fall Conference and the International Federation of Employees Benefits Plans Conference. The Board discussed members attending the NCPERS Public Safety Conference in October 11 -14 in Palm Springs, California. It was moved by Trustee St. Aubin and Trustee Oleson to allow more than 2 board members to attend the NCPERS Public Safety Conference, October 11 — 14 in Palm Springs, California. Adopted by the following vote: 7 — 0. Trustee Wood requested permissions to place an item on the agenda. Permission was granted and Trustee Wood reported to the Board that she asked the City Attorney's Office to provide a listing of pending ordinance before City Council. On May 28, the City Attorney's presented a spreadsheet and book of pending items, including the Police and Fire Retirement Ordinance. Trustee Wood had concerns that the draft ordinance is not contractually correct and should not be available for council review. Regular Meeting June 16, 2009 City Council Chambers Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Wood had further concerns that council members could take ordinances from the book and work on them in committee. Trustee Wood wanted to make certain that the Board could provide a recommendation regarding changes to the ordinances. The Board discussed having the Police and Fire Retirement System draft ordinance pulled from the City Council pending item list. Trustee Wood suggested that the Board ask for a formal request from the City Attorney's Office to the City Council to pull the Police and Fire Draft Retirement Office from the book. Attorney Ken Lane stated that he would meet with the City Attorney's Office and express the concerns of the Board. Additionally, Attorney Lane will ask for the formal request to withdraw the draft. Trustee Kraus stated that she would follow-up with Attorney Brigham Smith regarding the formal request. Karen Williams distributed a letter from Representative Joan Bauer in response to the Joint Retirement Board letter requesting her support for the OPEB legislation. Representative Bauer suggested that the Board send a letter to the chair person of the Senate Committee to urge support for the passage of the OPEB legislation. The Police and Fire Retirement Board requested that a joint letter of support be mailed to the Senate chairperson. Karen Williams distributed an email from Trustee Korkoske that the City contributed excess monies to the Retirement System based upon an estimate for the 2008 contributions. Trustee Korkoske informed the Board that the excess monies will be booked as a prepaid for the 2009 contributions. Attorney Ken Lane advised that, by statue, the Board is required to acknowledge the receipt of the Contributions. The Board accepted the receipt of the 2008/2009 City of Lansing Retirement contributions report. Trustee Holliday reported to the Board that a duty disability retiree asked if they could be reimbursed for the mileage to Dr. Roth. Trustee Holliday stated that the disability subcommittee met and did not remember a duty disability retiree ever receiving reimbursement. The Board discussed the request, and denied mileage reimbursement for duty disability retirees that are referred to the medical director. Attorney Ken Lane updated the Board on the pending policies under the qualified plan documents. Attorney Lane updated the handling of medical documents during board meeting. The policies should be ready for review at the next meeting. Attorney Ken Lane provided the updates for the Eligible Domestic Relations Order (EDRO) Forms. Attorney Lane reviewed his memo regarding the changes to Model A and Model B forms. Regular Meeting June 16, 2009 City Council Chambers Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Olson and supported by Trustee Wood to approve the revised Eligible Domestic Relations Order (EDRO) Forms, Model A and Model B, 2000 Edition, drafted by Gabriel Roeder Smith, with approved modifications to paragraph 50). The newly approved forms shall supersede all other EDRO forms. The newly approved forms shall be filed in the Board's policy book with the date of this motion of adoption shown thereon. Adopted by the following vote: 7 — 0. Attorney Ken Lane reviewed the Investment Policy Revision Memo. The changes in investment policy would add an asset class to allow the Police and Fire Retirement System to invest in the hedge fund of fund. Attorney Ken Lane will submit the Investment policy and percentages to the Retirement Office to forward to Asset Consulting Group for review. Attorney Ken Lane distributed and reviewed updates for the Trustee Handbook. Attorney Lane stated that most of the modifications were for state statues. Attorney Lane provided a new table of contacts, tab2 (revised PA 314), tab 3 (revised PA 88), tab 6 (revised EDRO act), tab 13 will be for the Investment Policy, tab 20 (revised travel policy), tab 27 (new disability re-evaluation policy). Attorney Lane will bring copies of the new EDRO forms for the handbooks. Attorney Lane provided a Medical Director Draft agreement for Board review. Attorney Lane reported to the Board that there was no contract with the University of Michigan or Dr. Roth. Dr. Roth was appointed as medical director by resolution. The agreement included that Dr. Roth is an independent contractor; he could be called to court to testify on evaluations that he provides, how fee amendments are handled, and contract termination provisions. Trustee Wood suggested a two-year review of this agreement. The Board discussed the provisions of the draft agreement. Trustee Oleson updated the Board regarding Mr. Salinas' EDRO. Mr. Salinas received the alternate payee calculation and was satisfied with the result. Attorney Lane provided an update on the Actuary Bid Process. The Request for Proposals was reviewed by Clark Hill and changes were made to the document. The document was sent to the City Attorney's office for review and should be available for next month's meeting. Mr. Robert Hecksel is preparing a health care prescription letter for review. Regular Meeting June 16, 2009 City Council Chambers Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five The Board discussed adding Hedge Fund to the Retirement system investment mix. The Board requested each member rank order their top three potential hedge fund firms. Mr. Hecksel reported to the Board that he contact Asset Consulting Group and received a very good glossary of information that assisted him in evaluating the firms. The Board requested that Mr. Hecksel contact Asset Consulting Group to provide a hedge fund glossary of terms. Trustee Holliday updated the Board that the Retirement Office is keeping a working list of potential disability investigator firms. Trustee Wood asked if the Board can initiate or review an investigation by going into closed session. Attorney Ken stated that Clark Hill provided an opinion on the subject. Information from investigation can be discussed in the disability committee in closed session. The Board discussed how investigations would be initiated and what is considered "verifiable and reliable." Trustee Wood inquired about written complaints received by the disability subcommittee. Trustee Wood asked if that information is subject to the Freedom of Information Act. Attorney Ken Lane stated that the complainant's personal information would not be subject to FOIA. Ms. Karen Williams distributed and reviewed the Securities Lending Account Report for the month of May. It was moved by Trustee Kraus and supported by Trustee Hecksel to adjourn the meeting. The meeting adjourned at 10:11 a.m. Minutes approved on1 23 Zd J A brose,466cretary v if o ice & Fire Retirement System Bruce Iliday, Ch irperson Police & ire Retire tent System