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HomeMy WebLinkAbout2017 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 17, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall _-`' Lansing, MI � - The Board was called to order at 8:34 a.m. rU ,--, c.re, -� Present: Trustees Fabus, Good, Oleson, Wilcox, Wohlfert, Wood —6. -< _- Absent: Trustee Bernero. St. Aubin � E, rri Others: Karen E. Williams, Finance Department; Greg Stump, Boorrxershme Consulting Group; Mark Parker, Employees Retirement System Board; Attorney Ken Lane, Clark Hill (representing the CityAttorney's Office). Trustee Wohlfert presided. It was moved by Trustee Wood and supported by Trustee Good to take item d 2017 Police and Fire Trustee Officer Elections out of order from other business. Adopted by the following vote: 6 - 0 It was moved by Trustee Good and supported by Trustee Wood to nominate and elect Brad St. Aubin as chairperson and Eric Wohlfert as vice chairperson. There were no further nominations. Adopted by the following vote: 6- 0 It was moved by Trustee Wood and supported by Trustee Good to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of December 20, 2016. Adopted by the following vote: 6 —0 It was moved by Trustee Wood and supported by Trustee Good to approve of the Official Minutes of the Joint Police and Fire Retirement System Board and the Employees Retirement System Board Meeting of December 20, 2016. Adopted by the following vote: 6 —0 Regular Meeting January 17, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Secretary's Report. 0 new fire member(s), 3 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 338. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of December 2016 amounted to $2,553,598.36. Total retirement checks printed for the P&F System: 730. Total retirement checks printed for both systems: 1637. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Fabus and supported by Trustee Good to approve the following application for Regular Age and Service Retirement: Brian S. Whitsitt, Police Department, age 56, 21 years of service credit, effective December 31, 2016 Robert Oleson, Fire Department, age 50, 25 years of service credit, effective February 23, 2017. Adopted by the following vote: 6 — 0. There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. There were no requests for Refund of Accumulated Contributions. Trustee Mark Parker, from the Employees' Retirement System Board, inquired if the Joint Retirement Boards would like to plan an Educational Conference for members and retirees. Trustee Parker noted that the last conference was 2013. It was moved by Trustee Good and supported by Trustee Rose to excuse Trustee St.Aubin from the January Police and Fire Retirement Board meeting. Adopted by the following vote: 6 -0. Attorney Ken Lane reported that a draft of the Retirement Ordinance was sent the Mayor's Office to be referred to City Council. Attorney Lane also forwarded a copy to Board members for review. Regular Meeting January 17, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Lane distributed updated investment policy that was approved at the December Joint Meeting. Attorney Lane distributed the proposed budget for 2017 for ERS Board review. Attorney Lane noted that he would update the 2016 expenditures once those amounts became available. It was moved by Trustee Fabus and supported by Trustee Good to approve the proposed budget for 2017 for the Police and Fire Retirement Board. Adopted by the following vote: 6 - 0. Attorney Lane recommended that the Police and Fire Retirement Board System re-adopt the existing travel and education policy. Each trustee would be allocated $4,000 for instate travel, and $6,000 for out-of-state travel. It was moved by Trustee Good and supported by Trustee Fabus to re-adopt the existing Police and Fire Retirement Policy for 2017. Adopted by the following vote: 6—0. Attorney Lane distributed the vendor review policy that includes the medical director. Trustee Fabus inquired if legal counsel had found information regarding having a medical panel and how it would work for duty disability evaluation. Attorney Lane was researching the information with MAPERS. Attorney Lane explained that under Public Act 314, the Board would have a doctor, the applicant would have a doctor and then both doctors would agree upon a third. A change to the medical panel would require an Ordinance change. Trustee Wood inquired if the Board would be responsible to pay all three doctors. Trustee Wohlfert indicated that in many cases, the third doctor would not be required, if both the Board's doctor and applicant doctor agreed. Attorney Lane indicated that he would research the questions raised by the Police and Fire Retirement Board and report upon his research at the next meeting. It was moved by Trustee Wood and supported by Trustee Fabus to approve the Vendor Review Policy. Adopted by the following vote: 6 -0. Attorney Lane reported that he had reviewed the ABS contracts and that they were ready to be signed by the chairperson. Regular Meeting January 17, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Ken Lane recommended the Police and Fire Retirement Board update its Trustee Handbook at the next meeting. Attorney Lane recommended that the SAS 70 Report be accepted contingent upon the Information Technology manager's review. It was moved Trustee Wood and supported by Trustee Good to accept the SAS 70/Custody and Fund Services SOC 1 Report from Northern Trust, contingent upon review by the Information Technology manager, and if there are any issues, the report would come back to the Police and Fire Retirement Board for reconsideration. Adopted the following vote: 6-0. Mr. Gregory Stump of Boomershine Consulting Group reviewed the Actuarial Experience Study for the Police and Fire Retirement System Board. My Stump reviewed the recommendations for changes to the economic assumptions, mortality assumptions and demographic assumptions. Mr. Stump recommended lowering the inflation rate to 2.75% and investment return rate to 7.25%. Mr. Stump discussed the impact of wage increases, career pay, and inflation on liability, Mr. Stump discussed the mortality tables used in the assumption review. Trustee Wood requested recommendations for lowering the investment return rate in steps, in light of budget constraints. Trustee Wood also requested information on the impact of accepting the recommendations in the report. Mr. Stump stated that you can lower the rate over the course of a few years, but the Board must commit to an ultimate rate. He also indicated the current assumption changes would add 1 million to the contribution from the city. Trustee Fabus indicated that he would like discuss the actuarial recommendations further at the next meeting. Trustee Wood indicated that the Board's decision regarding assumption changes should be completed before the City budget is presented. Mr. Stump indicated that he would need the Board's decision before the next actuarial valuation. Karen Williams notified members to review the subcommittee assignments and submit their request to either the chairperson or retirement office. Karen Williams reported that Retirement Office received a FOIA for base pay, FAC and pension figures. Attorney Ken Lane noted that Public Act 314 does exempt pension calculations from FOIA. The Tegrit Visit was proposed for spring 2017. Trustee Rose spoke with the City Clerk's Office and would like to set up a meeting with the Retirement Office and trustees regarding archived minutes. Karen Williams reported that the City Clerk's Office sent a memo to board clerks to submit all future approved meeting to the agenda center. Karen Williams distributed the medical director contract at the last meeting for the Board's review. Ms. Williams presented Monthly Investment Report for the month of December 2016. It was moved by Trustee Wood and supported by Trustee Wilcox to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 9:48 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St.Aubin, Chairperson Police & Fire Retirement System �i CITY OF LANSING `� `� JOINT POLICE AND FIRE RETIREMENT SYSTE11f1'�` r` and EMPLOYEES' RETIREMENT SYSTEM BOARD MEETING MINUTES E) Joint Meeting February 17, 2017 Council Conference Room Tuesday, 9:15 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:20 a.m. A quorum of both the Employees' Retirement System Board and Police and Fire Retirement System Board were present. Trustees present: (ERS), Dedic, Good, Houghton, Kraus, Munroe, D. Parker, M. Parker. — 7. (Police & Fire), Good, Rose, St. Aubin, Wilcox, Wohlfert, Wood. - 6 Others present: Karen E. Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group. The Joint Retirement Boards discussed having a Retirement and Health Care Conference in September 2017 at the Lansing Center. Trustee Mark.Parker indicated that the last conference was held in 2013. Trustee Mark Parker suggested some possible September dates for the conference. He also suggested having a keynote speaker that have presented workshop at MAPERS conferences. The Board tasked Trustee Parker with finding suitable dates for the event. Mr. George Tarlas reviewed the funding requirements for ABS Investments. The Police and Fire Retirement System and the Employees Retirement Systems would fund the ABS investments with the proceeds of the Private Advisors Investment portfolio that was terminated. Mr. Tarlas also provided an overview of upcoming ABS Investment Management 6th Annual Conference, May 3, 2017. It was moved by Trustee Wilcox and supported by Trustee Rose to allow Police and Fire Retirement System members to attend the ABS Investment Management Annual Conference. Adopted by the following vote: 6 - 0 Joint Meeting February 17, 2017 Council Conference Room Tuesday, 9:15 a.m. 10th Floor City Hall Lansing, MI Page 2 It was moved by Trustee Mark Parker and supported by Trustee Good to allow Employees Retirement System members to attend the ABS Investment Management Annual Conference. Adopted by the following vote: 7—0. Mr. George Tarlas distributed Asset Consulting Group's recommendation for quarterly cash flow withdrawals. Mr. Tarlas recommended that the Police and Fire Retirement System withdraw $5 million from T. Rowe Price and $3 million from Northern Trust S& P 500 Index Fund. Mr. Tarlas recommended that the Employees' Retirement System withdraw $3 million from Earnest Partners and $2.8 million from Lazard. Karen Williams recommended $10,000 from the Northern Trust Securities Account to the Comerica account for Board administrative expenses. It was moved by Trustee Kraus and supported by Trustee Good to withdraw a total of $5.8 million for the Employees Retirement System for quarterly cash flow needs, with $3 million from Earnest Partners and $2.8 million from Lazard as recommended by Asset Consulting Group, and $10,000 from Northern Trust Securities Lending for administrative expenses. Adopted by following vote: 7- 0 It was moved by Trustee Good and supported by Trustee Wood to withdraw a total of $8 million for the Police and Fire Retirement System for quarterly cash flow needs, with $5 million from T. Rowe Price and $3 million from Northern Trust S & P 500 Index Fund.as recommended by Asset Consulting Group, and $10,000 from Northern Trust Securities Lending Account for administrative expenses. Adopted by the following vote: 6 — 0. Karen Williams reported that the Employees' Retirement System Board and the Police and Fire Retirement System received transparency letters for the chairpersons to sign. The transparency letter state that Asset Consulting Group (ACG) seeks to comply with all applicable laws, regulations and policies concerning gifts and entertainment of public officials and public employees. The letter states ACG may provide occasional meals with the normal and ordinary course of business of the Board of Trustees that requires ACG's attendance, at a cost that may range from $25 to $100 per person per event. Mr. Tarlas reviewed the market environment and total portfolio analysis. Mr. Tarlas discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending December 31, 2016. He provided an analysis of the portfolios equity, fixed income, and real estate investments. Mr. Tarlas reviewed the January monthly financial report. Mr. Tarlas provided an overview of the Trustee Education schedule. The Board discussed a due diligence visit for Wasatch, Franklin Templeton and Western Asset. The proposed meetings would be in April if it could be arranged. It was moved by Trustee Wilcox and supported by Trustee Wohlfert to excuse Trustee Fabus from Joint Retirement Boards February meeting. Adopted by the following vote: 5-0. The meeting adjourned at 11:15 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD-OF, TRUSTEES CITY OF LANSING -� POLICE AND FIRE RETIREMENT SYSTEM G N (7) Regular Meeting February 21, 2017 cil Council Conference Room Tuesday, 8:30 a.m. r- 10th Floor, City Hall r�' a C=, Lansing, MI �a The Board was called to order at 8:34 a.m. Present: Trustees Fabus, Good, Oleson, Rose, St. Aubin, Wilcox, Wohlfert, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Good and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of January 17, 2017. Adopted by the following vote: 7—0 There were no public comments. Secretary's Report. 0 new fire member(s), 6 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 344. 3 death(s), Gail Bissell died 1/4/2017, age 81, spouse of Fire retiree; Barbara Glumm died 10/14/2016, age 90, spouse of Fire retiree; Kenneth Woods, Police, died 1/25/2017, age 69, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of January 2017, amounted to $2,581,838.19. Total retirement checks printed for the P&F System: 732. Total retirement checks printed for both systems: 1640. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Wohlfert and supported by Trustee Good to approve the following application for Regular Age and Service Retirement: Michael Hamilton, Fire Department, age 50, 25 years of service credit, effective February 24, 2017. Adopted by the following vote: 7—0. Regular Meeting February 21, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. There were no requests for Refund of Accumulated Contributions. Karen Williams reported that MAPERS is offering a One Day Seminar, March 10, 2017 in Ann Arbor. Ms. Williams requested that members who were interested in attending to contact the Retirement Office. Attorney Ken Lane reported that a draft of the Retirement Ordinance has been referred to the City Council. Attorney Lane also forwarded a copy to Board members for review. Trustee Wood reported that the City Council did receive the Retirement Ordinance and that the Ordinance had been referred to the Police and Fire Retirement Board for review. Attorney Lane distributed the approved vendor policy. Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. There were no official guidelines posted for submitting reports yet. Attorney Lane reviewed Public Act 345 regarding who is responsible for paying a medical review panel for disabilities. Attorney Lane indicated that the public act states that the systems are responsible for paying for all of the doctors. However, some plans have modified their systems regarding the implementation of the medical review panel. Attorney Lane provided an overview of the NCPERS ethics policy for vendors. He believed it was a good idea for the Board to review. NCPERS provided questions and possible answers to vendors who refused to sign the document. Attorney Lane will provide copies of the policies next month. The Police and Fire Retirement System Board reviewed the Actuarial Experience Study for recommendations for changes to the economic assumptions, mortality assumptions and demographic assumptions. The recommendations included lowering the inflation rate to 2.75% and investment return rate to 7.25%. Ms. Angela Bennett provided a spread-sheet with recommendations for a phase-in of actuarial assumptions and its effect on the City contributions. The Board discussed the recommendations in light of city budget constraints. Regular Meeting February 21, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Bennett explained that at the January meeting, the Employees Retirement System voted to lower their interest rate to 7.4%. Ms. Bennett recommended a three year phase proposal for the Police and Fire Retirement System. The first rate for Fiscal Year 2018 would be 7.45% to help smooth the City contributions; with 7.35% for Fiscal Year 2019; and 7.25% for Fiscal Year 2020. Trustee Wohlfert expressed concern about the timeframe of the three year phase. Trustee Wohlfert recommended a shorter phase-in and preferred to lower the rate to 7.35% for Fiscal year 2018. Ms. Bennett explained that the three year phase-in would provide more stable increases in the contributions per year. It was moved by Trustee Wohlfert and supported by Trustee Wood to lower the interest rate to 7.35% with the intent of revisiting the interest rate next year. Ms. Bennett indicated that the rate of 7.35% would result in an increase of $1 million to the City contribution for the Police and Fire Retirement System. Adopted by the following vote: 7 —0 The Police and Fire Retirement Board approved the following subcommittee memberships: Disability Committee— Fabus, Good, Wilcox, Wohlfert Investment Committee—Rose, Wohlfert, Wood Wilcox, Good Education Committee—Wilcox, St. Aubin, Wood Special Projects—St. Aubin, Wood, Wohlfert, Ex-Officio Legal Counsel The Board discussed having Tegrit come to a Board meeting to provide a performance review. Ms. Bennett indicated that the Information Technology Department made her aware of recent changes at the company that included layoffs. Karen Williams reported that GRS sent a proposed fee of $3,000 to update the minute master service. Attorney Lane provided a sample RFP for medical director. The Board referred the medical director review to the special projects subcommittee. Ms. Williams reviewed the quarterly expense report and the securities lending report for the month of January 2017 Trustee Woad inquired about the Board's data if something that happened to Tegrit or if they went out of business. The Retirement Board requested that the CEO and Pension Administration director attend the next meeting to for a due diligence meeting to discuss changes within the company. Angela Bennett indicated that the Police and Fire Retirement Board needed to adjust its inflation rate to coordinate the lowered interest rate of 7.35%. Trustee St. Aubin contacted Gregory Stump by telephone to inquire what number the inflation rate should be lowered to match the phased-in of 7.35%. Mr. Gregory Stump indicated by phone that the inflation rate needed to be lowered to 2.85% It was moved by Trustee Wood and supported by Trustee Wohlfert to lower the inflation rate to 2.85% for fiscal year 2018. Adopted by the following vote: 7 -0. It was moved by Trustee Wilcox and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 9:27 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St.Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM BOARD and POLICE AND FIRE RETIREMENT SYSTEM BOARD MEETING MINUTES - amended Joint Meeting March 14, 2017 Council Conference Room Tuesday, 9:00 a.m. 10th Floor City,Hall Lansing, MI The meeting was called to order at 9:03 a.m. A quorum of both the Employees' Retirement System Board and Police and Fire Retirement System Board were present. Trustees present: (ERS), Good, Kraus, Munroe, D. Parker, M. Parker, Riley, Wood. — 7. (Police & Fire), Good, Oleson, Rose, St. Aubin, Wohlfert, Wood. - 6. Others present: Karen E. Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Tim McClure, Bala Rajamani, Tammy Paquette, Tegrit; Collin Boyce, Chief Information Officer.. It was moved by Trustee Good and supported by Trustee Munroe to excuse Trustee Dedic from the Joint Meeting. Adopted by the following vote: 7 — 0. Trustee St. Aubin indicated that the Board was notified of possible layoffs and that Tegrit had sold off a portion of its business. Mr. Tim McClure, CEO, Tegrit indicated that the company sold its Cloud Accounting services in December 2016. The unit was unprofitable for the company. The sale allowed Tegrit to restructure and invest more resources to its pension administration services. Trustee Wood inquired about the Board's data if something that happened to Tegrit or if they went out of business. Mr. Bala Rajamani indicated that the Retirement Board owned the data and would still be able to utilize the information in another software application. Mr. McClure added that the pension administration division is stable, doing well and has been adding clients, and employees. Mr. Collin Boyce requested information about how the City's data's is maintain and what access would be needed if the City moved to another vendor in the case of the company going out of business. The Board requested improved communication from Tegrit regarding future plans for Arrivos software and when there are changes within the company that may affect the pension administration system. Karen Williams indicated that the Joint Boards voted to have a Retirement Conference this year. The Lansing Center has provided September 7, 2017 as an available date. The Joint Boards will need to sign a contract to rent the ballrooms for the workshops and dinner. Trustee Mark Parker of the Employees Retirement System will serve as chair of the Joint Education Committee. It was moved by Trustee Good and supported by Trustee Wohlfert to excuse Trustee Fabus from the Joint Meeting. Adopted by the following: 6 -0 It was moved by Trustee Wilcox and supported by Trustee Wood to adjourn the meeting. Adopted by the following: 6 - 0. The meeting adjourned at 9:36 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting April 18, 2017 Council Conference Room Tuesday, 8:30 a.m. - 10th Floor, City Hall Lansing, MI The Board was called to order at 8:33 a.m. ' N) Present: Trustees Fabus, Good, Rose, St. Aubin, Wilcox, Wohlfert, Wood—�7. � Absent: Trustee Bernero r: E3 ;.<< Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Elarl�;�lill (representing the City Attorney's Office); Trustee Mark Parker, Employees' Retirement System. It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of March 14, 2017. Adopted by the following vote: 7— 0 It was moved by Trustee Wohlfert and supported by Trustee Wilcox to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees Retirement System Board Meeting of March 23, 2017. Adopted by the following vote: 7 - 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 348. 1 death(s), Judy Sawdy-Jenkins, died March 24, 2017, age 77, spouse of Fire retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of March 2017, amounted to $2,604,577.69. Total retirement checks printed for the P&F System: 734. Total retirement checks printed for both systems: 1642. Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. Regular Meeting April 18, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Wohlfert and supported by Trustee Good to approve the following application for Regular Age and Service Retirement: Edward A. Thomas, Police Department, age 55, 12 years, 3 months of service credits effective May 1, 2017.(From Deferred) Adopted by the following vote: 7-0. There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Karen Williams reported that MAPERS Annual Spring Conference is scheduled for May 20-23, 2017 in Acme, Michigan. Ms. Williams requested that members who were interested in attending to contact the Retirement Office. Ms. Williams provided a retirement conference update. The Lansing Center has been scheduled for Thursday, September 7. Ms. Williams discussed items on the proposed conference budget that included room rental, food and supplies. The Police and Fire Retirement Board allocated $12,500 for the September retirement conference. Ms. Williams indicated that the retirement conference committee discussed having sponsorships. The Police and Fire Retirement System Board inquired how the sponsorships would work and expressed concern that any monies go directly to the Lansing Center. Attorney Lane opined that any sponsorships monies go directly for the benefit of the Conference. He indicated that an agreement can be drafted. Trustee Wood expressed concern about requesting sponsorships. Trustee Parker indicated that the Retirement Conference did not need to have sponsorships if members were uncomfortable. It was moved by Trustee Fabus and supported by Trustee Good to approve the following request for refund of accumulated contributions: Kurt C. Martens, CCLP Non-Supervisory, Vested, $114,492.48 Adopted by the following vote: 7 — 0. Regular Meeting April 18, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Page Three Lansing, MI to Attorney Ken Lane amendedthe forPhle conferen Fire ce andRetirement ncreased yeti ement include the increased allocation payroll amount. It was moved by Trustee Good and supported by Trustee Wood to approve the amended Police and Fire Retirement System Budget. Adopted by the following vote: 7 -0. Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retire onMarch health 29systems 20 7S to provide Iwerenno annual official guidelines the State Treasurer's office as of posted for submitting reports yet. Attorney Lane reviewed the Lansing Charter and reported that the ethics provision does not apply to the pension system. Attorney Lane reported that the City Attorneys Office will review d that the Police and Firehe issue and have r Retirermenlon at t SystemehasXa meeting. Attorney Lane no Code of Conduct policy in place. Karen Williams indicated that the Police and Fire Retirement System Ordinance amendment was distributed for Board review. Trustee Wood reported that the Special Projects committee met to review the Police and Fire Retirement System Ordinance. Trustee Wood recommended approval of the Retirement Ordinance amendment. It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the Police and Fire Retirement System Ordinance amendment. Adopted by the following vote: 7 — 0 Karen Williams reported that she contacted Gabriel Roeder Smith and requested a price for maintenance s.ly Williams alsohe minute rrreported that she wilaster service. Ms. l meetTrulliams stee update have an tee Rose torev review the next meeting.. M the Minute Master service and discuss options. Attorney Lane distributed a RFP for medical director for Board review. Attorney Lane included a question regarding if the medical doctor had experience as a member of a panel. The proposal was referred to the Special Projects Committee. Ms. Williams reviewed the investment report and the securities lending report for the month of March 31, 2017 It was moved by Trustee Wilcox and supported by Trustee Rose to adjourn the meeting. Adopted by the following vote: 7 -0 The meeting adjourned at 9:07 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting May 16, 2017 V`s Council Conference Room Tuesday, 8:30 a.m. _ Wit? 10th Floor, City Hall Lansing, MI N �,. The Board was called to order at 8:35 a.m. y' Present: Trustees Fabus, Good, Rose, St. Aubin, Wilcox, Wohlfert— 5. :Z3 c..a r; GJ Absent: Trustee Bernero, Fabus, Wood Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of April 20, 2017. Adopted by the following vote: 6— 0 There were no public comments. Secretary's Report. 2 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 349. 0 death(s). Refunds made since the last regular meeting amounted to $114,492.48. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of April 2017, amounted to $2,715,157.37. Total retirement checks printed for the P&F System: 735. Total retirement checks printed for both systems: 1641. Domestic relations order received: 1. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. There were no requests for Regular Age & Service Retirement. There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Karen Williams reported that MAPERS Annual Spring Conference is scheduled for May 20-23, 2017 in Acme, Michigan. Ms. Williams requested that members who were interested in attending to contact the Retirement Office. Regular Meeting May 16, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Ms. Williams provided a retirement conference update. The Lansing Center has been scheduled for Thursday, September 7. Ms. Williams discussed presenters and vendors who have been requested to participate at the September retirement conference. Trustee St. Aubin reported that Trustee Fabus and Trustee Wood requested to be excused from the May meeting. It was moved by Trustee Wilcox and supported by Trustee Rose to excuse Trustee Fabus and Trustee Wood from the May Police and Fire Retirement System Board meeting. Adopted by the following vote: 6 - 0 Attorney Lane reported that the Retirement Ordinance is under review by the City Council. Ms. Bennett indicated that she believed that the Retirement Ordinance has been approved by the City Council. Attorney Lane reviewed the Lansing Charter and reported that the ethics provision does not apply to the pension system. Attorney Lane reported that the City Charter is not clear if the Board is required to follow the City's ethics provision. Public Act 314 states that the Board is responsible for adopting its own code of conduct. Attorney Lane noted that the Police and Fire Retirement System have a Code of Conduct policy in place and the policy is in compliance with state law. Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. Official guidelines have been posted and Attorney Lane affirmed that the City of Lansing Police and Fire Retirement Board annual report is comprised of the actuarial valuation and the year-end financial report. Ms. Bennett added that the Treasury guidelines had been posted May 8, 2017 and that the Finance Department will submit the annual report to the State Treasurer's Office. Attorney Ken Lane distributed the amended Police and Fire Retirement Board budget to include the increased allocation for the conference and the increased retirement payroll amount. Regular Meeting May 16, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Page Three Lansing, MI Karen Williams reported that there was an issue with a police officer's sworn date and when the member contributed to the Police and Fire Retirement System. The officer's hire date was listed as January 1994 and the sworn date was listed as May 1994. The Retirement Office researched payroll records and found that the member had been contributing into the Police and Fire System prior to being a sworn police officer. The Retirement Office received additional records from the Human Resources Department that indicated that the May 1994 was correct and the contributions were made in error. The member's information was provided to legal counsel for review and available options for correction. Attorney Lane opined the City Attorney's Office provided an opinion in 1996 that indicates only sworn fire and police officers are members of the Police and Fire Retirement System. Attorney Lane will research the issue further and provide options regarding the contributions. Attorney Lane will also contact Human Resources regarding other possible Police or Fire members that have incorrect dates to make certain that no one is missed. Karen Williams provided the annual Duty Disability Income Verification Report. Six fire retirees and three police retirees had not submitted their annual outside income certification. Retirees who did not respond will be sent a second letter. If the retiree does not respond, the Retirement Board may suspend the disability retirees' pension. Ms. Bennett provided an overview of the Segal Report. The report has been completed and Ms. Bennett described the scope of the report was to review actuarial assumptions and offer recommendations. Karen Williams reported that she met with Trustee Rose and Angela Bennett to review the Gabriel Roeder Smith Minute Master service. Ms. Williams indicated that the City does not have anything similar at this time. The records are indexed and are searched for keywords. The cost to update Minute Master would be $3,300. The cost for maintenance would be $500. Trustee Rose reported that he had the opportunity to review the Minute Master software. Trustee Rose noted that Retirement records are searchable and more detail and more in- depth information could be found quickly. Trustee Rose recommended that the Board update the Minute Master Service. Ms. Bennett added that with the software, a user had the ability to research an issue back to 1944 and felt the system was more efficient. Attorney Lane reported that he has used the Minute Master books before and have found the service useful. The Police and Fire Retirement Board indicated that the Special Projects Committee will meet to discuss the RFP for the medical director. Ms. Williams reviewed the Quarterly Expenses Report and the securities lending report for the month of April 30, 2017. It was moved by Trustee Wilcox and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 9:07 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT BOARD SYSTEM and POLICE AND FIRE RETIREMENT SYSTEM BOARD MEETING MINUTES Joint Meeting May 18, 2017 Council Conference Room Thursday, 9:15 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:20 a.m. A quorum of the Employees' Retirement System Board was present. Trustees present: (ERS), Dedic, Good, Houghton, Kraus, Munroe, D. Parker, M. Parker. — 7. (Police & Fire), Good, Rose - 2 Others present: Karen E. Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Cindy Shorty, Nathan Burk, Asset Consulting Group; Collin Boyce, Information Technology; Jennifer Martin, Portfolio Specialist; Ellie Nall, Institutional Client Service, T. Rowe Price. Mr. Boyce reported that he reviewed the SAS 70 Report. He discussed the security provision of Northern Trust and provided a list of questions for further evaluations. Trustee Kraus inquired if a secure portal could be made available for trustees who do not have access to the internal R: Drive. Mr. Boyce recommended a virtual workstation where documents can be loaded for trustees. Mr. Boyce suggested that Retirement Board first provide the policies regarding what documents will be available. Ms. Jennifer Martin and Ms. Ellie Nall provided an overview of the T. Rowe Price Investment performance. Ms. Nall reviewed the Investment Team and process. Ms. Martin reviewed the T. Rowe Price US Structured Research Equity Strategy. Ms. Martin discussed the Employees' Retirement System and Police and Fire Retirement Systems portfolios. Ms. Martin discussed analysis and investment returns for the first quarter, ending March 31, 2017. Joint Meeting May 18, 2017 Council Conference Room Thursday, 9:15 a.m. 10th Floor City Hall Page 2 Lansing, MI Ms. Cindy Short recommended that the retirement boards select some dates for the due diligence visits for Wasatch, Franklin Templeton and Western Asset. Asset Consulting Group will arrange the visit. Ms. Short and Mr. Burk discussed that Invesco had some staff restructuring and Ms. Keri Hepburn is no lodnger with Invesco. Mr. Burk no concerns regarding theacha changes which dond Ms. Short not ted t Assethat Consulting Group not affect had the investment side of the company. Mr. Burk reviewed the market environment and total portfolio analysis. Mr. Burke discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending March 31, 2017. He provided an analysis of the portfolios equity, fixed income, and real estate investments. Mr. Burke and Ms. Short reviewed the April monthly financial report. It was moved by Trustee Kraus and supported by Trustee Good to adjourn the Joint Retirement Boards May meeting. Adopted by the following vote: 6-0. The meeting adjourned at 11:10 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD O,.F TRUSTEES CITY OF LANSING �' G POLICE AND FIRE RETIREMENT SYSTEM:_ Regular Meeting March 21, 2017 C Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI "o GJ The Board was called to order at 8:34 a.m. Present: Trustees Fabus, Good, Rose, St. Aubin, Wilcox, Wohlfert, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office); Eric Weber, Fire Department. It was moved by Trustee Fabus and supported by Trustee Good to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of February 21, 2017. Adopted by the following vote: 7— 0 It was moved by Trustee Good supported by Trustee Wohlfert to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees Retirement System Board Meeting of February 21, 2017. Adopted by the following vote: 7 - 0 There were no public comments. Secretary's Report. 0 new fire member(s), 3 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 347. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of February 2017, amounted to $2,590,129.64. Total retirement checks printed for the P&F System: 732. Total retirement checks printed for both systems: 1638. Domestic relations order received: 0. Domestic relations orders pending: 0 Eligible domestic relations orders certified: 0. Regular Meeting March 21, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Wohlfert and supported by Trustee Good to approve the following application for Regular Age and Service Retirement: Christian Ericks, Fire Department, age 46, 25 years of service credits, effective April 15, 2017 (with the purchase of 13 months of universal service credits) Scott V. Polhemus, Police Department, age 50, 25 years of service credits, Effective April 15, 2017. Adopted by the following vote: 7-0. There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Karen Williams reported that MAPERS Annual Spring Conference is scheduled for May 20-23, 2017 in Acme, Michigan. Ms. Williams requested that members who were interested in attending to contact the Retirement Office. Ms. Williams provided a retirement conference update. The Lansing Center has been scheduled for Thursday, September 7. Ms. Williams discussed items on the proposed conference budget that included room rental, food and supplies. The Police and Fire Retirement Board allocated $12,500 for the September retirement conference. Attorney Ken Lane will amend the Police and Fire Retirement Board budget to include the increased allocation for the conference and the increased retirement payroll amount. It was moved by Trustee Fabus and supported by Trustee Wilcox to approve the request for refund of accumulated contributions for Kevin Marshall, CCLP NonSupervisory, not vested of$14,770.12. Adopted by the following vote: 7 —0. Mr. Eric Weber addressed the board regarding former Fire Chief Greg Martin. Mr. Weber indicated that Mr. Martin has requested a pro-rated increase in benefits when he reaches age 60. The Police and Fire Retirement System increase in benefits are for members who have 25 years of service credits in the system. Mr. Martin retired before having 25 years of service and is not entitled to the increase. Mr. Weber requested that the Retirement Board send Mr. Martin a letter of response. Regular Meeting March 21, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Ken Lane recommended that Mr. Martin send a letter to the Police and Fire Retirement Board with his request. The Board can then respond to the request. Attorney Ken Lane reported that the Information Technology manager has been invited to the next joint meeting to address the SAS Report, cybersecurity and other technology issues Attorney Lane discussed Public Act 530 which amends Public Act 314 that requires pension and retirement health systems to provide an annual report to the State Treasurer's Office as of March 29, 2017. There were no official guidelines posted for submitting reports yet. Attorney Ken Lane distributed a letter for vendors of the system indicating that vendors cannot make campaign contributions to any elected officials who could have influence over their hiring. Attorney Lane provided copies of the NCPERS ethics policy for investment advisors. Attorney Lane noted that investment managers would need to disclose contributions on schedule A list of organization. NCPERS provided questions and possible answers to vendors who refused to sign the document. The Police and Fire Retirement Board discussed the policy and took no action. Trustee Wood recommended that the trustees receive annual ethics training on the City of Lansing policy. Attorney Lane noted that the Police and Fire Retirement System has a Code of Conduct policy in place. Attorney Lane will review the charter and provide training as necessary. Karen Williams indicated that the Police and Fire Retirement System Ordinance amendment was distributed for Board review. Trustee Wood recommended that the Special Projects committee meet to review the Police and Fire Retirement System Ordinance. Trustee Wood also discussed adding a provision for retirees who come back as contract employees for longer than a year. The Police and Fire Retirement System Board reviewed the Actuarial Experience Study for recommendations for changes to the economic assumptions, mortality assumptions and demographic assumptions. The Board lowered the inflation rate to 2.85% and investment return rate to 7.35% Regular Meeting March 21, 2017 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Wood and supported by Trustee Good to accept the actuarial experience study. Adopted by the following vote: 7 —0. Karen Williams reported that Asset Consulting Group provided a schedule of due diligence visits for the week of April 17, 2017. Asset Consulting Group recommended visits to Franklin Templeton, Wasatch and Western Asset. The Police and Fire Retirement Board requested that Asset Consulting Group recommend two visits rather than three. Karen Williams reported that GRS sent a proposed fee of $3,000 to update the minute master service. Trustee Wood inquired how much would the storage of the date cost instead of updating the minute master. Trustee Wood expressed concern that the Minutes Master does not allow access to the public without a password. Trustee Wood also would like to see the clerk's side expanded to include more data. Trustee Rose indicated that he will meet with the Retirement Office to review the archive and determine options. Trustee Rose recommended pushing the Tegrit due diligence until summer or fall. Attorney Lane provided a sample RFP for medical director. The Board referred the medical director review to the special projects subcommittee. Attorney Lane reviewed the sample RFP for medical director received from MAPERS. The Board will check with the City for a list of worker's compensation doctors to exclude them from the list. The subcommittee also discussed having a three panel board of doctors. The Board will send out the RFP to determine the response prior to any amendments to the Retirement Ordinance. Ms. Williams reviewed the investment report and the securities lending report for the month of February 2017 It was moved by Trustee Wilcox and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 7 -0 The meeting adjourned at 9:27 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St.Aubin, Chairperson Police & Fire Retirement System