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HomeMy WebLinkAbout2007 Police and Fire Retirement System minutes FINAL OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING = N POLICE AND FIRE RETIREMENT SYSTEM '-: Regular Meeting January 16, 2007 N � Council Conference Room Tuesday, 8:30 a;:in. ^? � 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:31 a.m. r Present: Trustees Cochran, Holliday, Kraus, Lewis, Wood Absent: Trustee Bernero, St. Aubin Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Brigham Smith, Law Department; Scott Dedic, Parks Department, RobertAntekeier, Public Service Department, Bryan Epling, Robert Oleson Fire Department, David Hoffman, Gabriel, Roeder, Smith and Company. It was moved by Trustee Holliday and supported by Trustee Lewis to approve the Official Minutes of the Police and Fire Meeting of December 19, 2006. Adopted by the following vote: Unanimously It was moved by Trustee Kraus and supported by Trustee Lewis to approve the Official Minutes of the Joint Police and Fire and Employees Retirement System Board Meeting of December 21, 2006. Adopted by the following vote: Unanimously Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 477. 0 deaths. Refunds made since the last regular meeting amounted to$0. Retirement allowances paid for the month of December, 2006 amounted to $1,691,049.87. Total retirement checks printed for the P&F System: 624. Total retirement checks printed for both systems: 1402. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Lewis and supported by Trustee Holliday to approve the following application for Regular Age & Service Retirement: Brian J. Davis, Fire Department, 25 years, age 47, effective January 16, 2007. (Purchased 5 months of service credits to retire). Adopted by the following vote: unanimously Regular Meeting January 16, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported to the Board that Mr. Herman Louis Jones has requested a refund of his accumulated contribution. Mr. Jones did submit a notarized written request for the refund. Jack Roberts had concerns that a grievance may be filed by Mr. Jones. Mr. Roberts wanted to verify that the time to file a grievance had expired. Mr. Roberts inquired of Trustee Holliday if a grievance had been filed. Trustee Holliday informed the Board that there was no grievance and the time to file had expired. It was moved by Trustee Holliday and supported by Trustee Kraus to refund the accumulated contributions of Mr. Jones based upon his written request. Adopted by following vote: unanimously It was moved by Trustee Wood and supported by Trustee Lewis to excuse Board Members Bernero and St. Aubin. Adopted by the following vote: unanimously Karen Williams distributed material for Training and Education, the 2007 National Public Employees Retirement Fund Summit, April 15-17. Trustee Cochran opened the floorfor public comments. Mr. Bryan Epling, Fire Department requested clarification of the Fire Trustee Election nomination petitions. Karen Williams explained that nomination petitions would be available on January 22, 2007 for members of the Fire Department who wished to run for election. Mr. David Hoffman, Gabriel, Roeder, Smith and Company presented the 2005 Police and Fire Retirement System Actuary Report. Mr. Hoffman gave an overview of the 62nd Actuarial Evaluation. He explained the primary purpose to determine a contribution for the current fiscal year. The Actuary Report recommendations included a separate trust for health care, and a review of the change of assumptions presented in the recent experience study. The Board discussed and selected a small/mid cap manager, Integrity. Jack Roberts suggested a review of the final fee schedule from Integrity. It was moved by Trustee Holliday and supported by Trustee Wood that Integrity be approved as the new small/mid cap manager. Trustee Wood offered an amendment that Ariel Investment be terminated. Adopted by the following vote: unanimously Regular Meeting January 16, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three The Board discussed 2007 Minute Master Conversion. No quorum was available at the Joint Board meeting in December. Gabriel, Roeder, Smith and Company stated that there will be a reduction/discount in fees for the conversion, if both the ERS Board and the Police and Fire Board approve the conversion. It was moved by the Trustee Wood and supported by Trustee Lewis to approve the fees for the 2007 Minute Master Conversion. Adopted by the following vote: unanimously Attorney Brigham Smith discussed the City Attorney's concerns with the Police and Fire Board and the Employee Retirement System Board seeking outside legal counsel. Attorney Smith informed the Board that he discussed these concerns with both chairperson of each board and drafted a letter to memorialize the conversation. He asked that the letter be distributed to all board members. The Board discussed the need to have experts, retirement analysts, attorneys dedicated to the Police and Fire Retirement system. The City Attorney informed the Board that an outside legal counsel cannot be hired by the Retirement system, per the City Charter. The Board discussed the difference between the State Statute and the City Ordinance as it relates to the Retirement Board. It was moved by Trustee Wood and supported by Trustee Lewis to officially ask the City Attorney's office to seek outside legal counsel. Adopted by the following vote: unanimously Trustee Wood suggested that the Retirement Office forward information from Asset Consulting regarding possible law firms. Jack Roberts advised the Board that the Law Department has been called upon to interpret the surviving spouse options for a 1998 retirement and January 1991 divorce. He expressed that from historical review, it is the Law Department's conclusion that a policeman, who retired in 1988 with a surviving spouse, automatically selected Option 1 (100% to retiree and 50% to surviving spouse) and the subsequent divorce from the spouse would not change this option (Section 294.02(k)(3)(A). Jack Roberts distributed a proposal for the Eligible Domestic Relations Order process. He asked the board to review the proposal for possible passage at a future meeting. Regular Meeting January 16, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams informed the Board that monies from a settlement of the Loomis Sayles account and Worldcom litigation had been deposited to Northern Trust. Asset Consulting suggested that the monies be forwarded to Western Asset Management funds if the money was not needed for cash flow. It was moved by Trustee Kraus and supported by Trustee Woods to move the cash settlement from Northern Trust to Western Asset Management as suggested by Asset Management. Adopted by the following vote: unanimously Trustee Wood gave a report of the Joint Ad Hoc Committee on Health Care held January 12, 2007. A copy of the minutes was submitted to the Secretary and was included with the official meeting minutes. Trustee Wood reported to the Board the Committee will hold meetings bi-weekly and their next meeting was scheduled for January 26, 2007. The Board discussed the Duty Disability Re-examination process. Members asked Karen Williams to distribute the current Duty Disability before next month's meeting. Trustee Wood requested that a policy book for Trustees be created. Karen Williams was asked to gather current policies and research Minute Master for inclusion in the Policy Book. Karen Williams will give a report on the progress of the project at the next meeting. Karen Williams distributed the Beneficiary Nomination Form to Board Trustees. The Board requested additional time to review the form. Karen Williams updated the Board on the progress of the Fire Trustee Election. Nominating Petitions would be due January 31, 2007, with elections to follow in February. The Board discussed 2007 Meeting dates for the Retirement Boards Joint Meeting. The Board discussed moving to quarterly joint meeting and would create a schedule at the February Joint meeting. It was moved by Trustee Kraus and supported by Trustee Holliday to have Joint Meetings with the Employees Retirement System Board on a quarterly basis. Adopted by the following vote: unanimously Karen Williams distributed and reviewed the December Investment Report. It was moved by Trustee Holliday and supported by Trustee Lewis to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 10:40 a.m. Minutes approved on 2 -2,0 Jerp Ambrose,rose, Secretary Pd6ce & Fire Retirement System WHIO Cochran, Chairperson OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 20, 2007 Council Conference Room Tuesday, 8:30.a.m,,,., 10th Floor, City Hall = ' Lansing, MI --� j The Board met in regular session and was called to order at 8:32 a.m. Present: Trustees Cochran, Holliday (8:39), Kraus, Lewis, St. Aubin(8:39), Wood-,. Absent: Trustee Bernero C� Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Brigham Smith, Law Department; Robert Oleson Fire Department; Scott Dedic, Parks Department; David Hoffman, Gabriel, Roeder, Smith and Company. It was moved by Trustee Holliday and supported by Trustee Lewis to approve the Official Minutes of the Police and Fire Meeting of January 16, 2007 with corrections. Adopted by the following vote: Unanimously Secretary's Report. 3 new fire member(s), 0 new police members, 0 reinstatement(s), 1 refund(s), 0 transfers, 2 retired. Total: Active membership: 477. 3 deaths. George E. Hethorn, Fire, died 12/08/2006, age 74, spouse to receive 50%; George W. Hinman, Fire, died 1/9/2007, age 89; John E. Coffey, Fire, died 111OH2007, age 90. Refunds made since the last regular meeting amounted to$18,976.53. Retirement allowances paid for the month of January, 2007 amounted to $1,731,350.07. Total retirement checks printed for the P&F System: 627. Total retirement checks printed for both systems: 1402. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Karen Williams submitted a letter from Police Chief Mark Alley requesting Duty Disability retirement evaluation for Mr. Steven Mitchell. It was moved by Trustee Wood and supported by Trustee Kraus to refer the Duty Disability request for Mr. Mitchell to the Disability sub-committee. Adopted: Unanimously Karen Williams submitted a letter from Mr. Frank Holmes that requested reinstatement to the Police and Fire Retirement System. The Board discussed the nature of the duty disability and Mr. Holmes' progress. The Board discussed the process used for reinstatement. Jack Roberts advised the Board that as with the review process, Mr. Holmes should be evaluated by the Board Doctor. Regular Meeting February 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee St. Aubin and supported by Trustee Holliday to send the Mr. Frank Holmes to the Board doctor to be evaluated for reinstatement. Adopted by following vote: unanimously It was moved by Trustee Wood and supported by Trustee St. Aubin to excuse Board Trustees Bernero. Adopted by the following vote: unanimously Karen Williams distributed material for Training and Education, the 2007 National Public Employees Retirement Fund Summit, April 15-17. Ms. Williams announced the dates for the MAPERs Conference in June and will have information at the next meeting. Karen Williams updated the Board on the Health Care Audits. The Retirement Office sent out a second mailing to retirees who had not responded to the initial request for information. The response rate for the Police and Fire System was approximately 85%. The Retirement Office should have a full report by April, detailing number of retirees and/or dependents who are receiving health care, and those retirees/dependents who have health care benefits incorrectly. Jack Roberts updated the Board on the Domestic Relations Orders. Mr. Roberts distributed and reviewed the Policy for the Domestic Relations Orders. He advised the Board on the process that will be used by the Retirement Office and Law Office regarding retirees who are already in "pay status." Mr. Roberts asked that the policy be approved and ratified by the Board. Mr. Roberts explained the difference between Domestic Relations Orders (DRO) and Eligible Domestic Relations Orders (EDRO). It was moved by Trustee Wood and supported by Trustee Holliday to adopt the new Domestic Relations Order Policy and that is supersedes all other Domestic Relations Orders Policies. This policy shall be attached to the minutes and also filed in the policy book with the date of this motion of adoption shown thereon. Adopted by the following vote: unanimously Trustee Wood updated the Board on the Joint Ad Hoc Health Care Committee. The committee did not meet due to outstanding questions regarding retiree prefunding, VEBA. Another meeting has been scheduled for February 23. The Board decided to delay the subcommittee assignments until after the Fire Trustee elections. Regular Meeting February 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Lewis and supported by Trustee Wood to elect Trustee Bruce Holliday as chair of the Police and Fire Retirement Board. Adopted by the following vote: unanimously It was moved by Trustee St. Aubin and supported by Trustee Wood to elect Trustee Mike Lewis as vice chair of the Police and Fire Retirement Board. Adopted by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee St.Aubin by special resolution to make Trustee Bruce Holliday as chair the official signator on behalf of the Police and Fire Board for The Northern Trust Company. Adopted by the following vote: unanimously It was moved by Trustee Wood and supported by Trustee St. Aubin to make Trustee Holliday as chair the official signator on behalf of the Police and Fire Board for all investment funds. Adopted by the following vote: unanimously Trustee Kraus asked the minutes to reflect that although she appreciated Trustee Cochran's willingness to serve beyond the expiration of his term, she would like the Board to be more timely in holding its elections. The Board would avoid waiting until a new Trustee is elected for subcommittee meetings membership and extending into the new Trustee's term. Jack Roberts distributed a written policy for the process for reviewing Duty Disability. The policy will be available for Trustees to review and vote upon at a later meeting. Jack Roberts talked with outside Counsel regarding a separate tax identification number. The outside Counsel suggested that it was appropriate for the Police and Fire Retirement System to have its own tax identification number. Mr. Roberts discussed concerns regarding Errors and Omissions insurance coverage for Board members. It was moved by Trustee Wood and supported by Trustee St. Aubin to have Tom Korkoske create and submit a separate tax identification number for the Police and Fire Retirement System. Adopted by the following vote: unanimously Regular Meeting February 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Jack Roberts discussed the progress on funding Integrity Investment. Mr. Roberts has contacted Asset Consulting by letter with inquiries regarding the documents submitted. Mr. Roberts is waiting for a response. Jack Roberts has reviewed the Ordinance for Duty Death Disability and has further research to perform regarding this item. Jack Roberts also updated the Board regarding the Ordinance Changes. Mr. Roberts has met with Doug Rubley and continues to progress on this item. Karen Williams distributed the Duty Disability Re-examination Policy. The Board will review the Policy and discuss at a future meeting. Jack Roberts updated the Board on the Beneficiary Nomination Form. The ERS form does not "fit" with the Police and Fire Retirement System Ordinance as currently drafted. The language needs to be re-written regarding spousal sign-off and election of options. Karen Williams updated the Board on the Fire Trustee Election. Ms. Williams discussed a discrepancy regarding the Primary Election,ten more ballots were returned than signatures on the Poll list. She reviewed the process regarding the primary elections. There were 225 green numbered ballots were printed and all 225 ballots were returned and accounted. Karen Williams updated the Board on the Trustee Policy Book. Ms. Williams received copies of the recent Board policies from Jack Roberts. Ms. Williams informed the Board that she would research Minute Master to locate other policies. It was moved by Trustee Wood and supported by Trustee Holliday to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 9:36 a.m. Minutes approved on -zU" C1V Jerry m A6 ro , Secretary Pol(ce & Fire Retirement System 7 Bruce Holiday, Cha�person DOMESTIC RELATIONS ORDER POLICY The Board will honor Michigan Domestic Relations Orders (DRO) that assign some or all of the periodic monthly pension benefit payments of a retiree (participant) who is in pay status to the participant's divorced spouse, provided that all the following conditions are met: 1. the assigninent is only for part or all of the joint lifetime of the participant and former spouse, i.e., while they are both living, 2. the DRO is properly issued by a court of competent jurisdiction as part of a divorce between the participant and a spouse (alternative payee) and is included in a judgment of divorce or an order authorized by the divorce, 3. the DRO does not require the plan to do or incur any of the following: a. make any payment or take any action which is inconsistent with any federal law, rule, regulation, or applicable judicial decision; b. provide any type or form of benefit, or any option, which is not otherwise provided for Linder the provision of the Plan; C. provide increased benefits; d. alter or amend the established survivor benefits of either Party, as selected and determined under the Plan by the Participant at the time of retirement; e. incur any greater cost or liability to the Retirement System or Plan than existed before the entry of the DRO; and/or, f provide benefits to the Alternate Payee which are required to be paid to another Alternate Payee under another order previously determined to be a DRO, a Qualified Domestic Relations Order, or an Eligible Domestic Relations Order under 1991 PA 46, as amended, and 4. the DRO is submitted and complies with the following acceptance procedure: a. it is submitted to the Retirement Analyst in writing. Preferably, the initial submission will be made before the DRO is entered by the Court; b. it is reviewed and approved as to forn by the City Attorney. hi the review, the City Attorney must determine that the STATE OF MICHIGAN IN THE CIRCUIT COURT FOR THE COUNTY OF Plaintiff, File No. v HON. Defendant. (Attorney Name) (P#) Attorney for Plaintiff (address) (telephone #) (Attorney Name) (P#) Attorney for Defendant (address) (telephone#) DOMESTIC RELATIONS ORDER FOR THE CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM PLAN At a session of said Court, held in the Circuit Court for the County of , State of Michigan this day of ) 2006. PRESENT: HONORABLE , Circuit Judge This Order is intended by the Plaintiff, Defendant, and the Court to serve as a Surviving Spouse Benefit; whose last known address is: (NAME) (address) ALTERNATE PAYEE 8. The Alternate Payee is the Defendant/Plaintiff, ; Social Security No.: XXX-XX- ; date of birth: ; whose last known address is: (NAME) (address) DATE OF MARRIAGE AND DATE OF DIVORCE 9. The Participant and the Alternate Payee were married on: and divorced on: EFFECTIVE DATE OF THIS ORDER 10. This DRO shall take effect upon filing with the clerk of the Circuit Court and the acceptance by the Plan pursuant to Section 9 and, thereafter, shall be binding upon the Plan. i PARTIAL ASSIGNMENT OF RETIREMENT BENEFITS 11. The purpose of this DRO is solely to divide between the Plaintiff and Defendant the periodic monthly pension benefit, and identified increases thereto, that would 5 living benefit increase (i.e., non-guaranteed annual increases, supplemental payments/13th checks, one-time increases) on the benefits being paid from the Retirement System during the Parties'joint life, the Alternate Payee shall receive directly % of each such increase that is paid on and after the date of this DRO. e. Effective as of the first payment made by the Retirement System directly to the Alternate Payee under Section 7a., the Alternate Payee shall include in his/her gross income, in the tax year of receipt, all retirement benefit distributions that he/she receives pursuant to the Participant's assigmnent of benefits under this DRO; and, accordingly, the Participant shall not include such benefit distributions in his/her gross income. The Alternate Payee shall be treated as the sole distributee under IRC Sections 72 and 402 of any payment or distribution that is made to him/her under the Participant's assignment of benefits under this DRO. The Participant shall be responsible for all income taxes accruing on the retirement benefit distributions he/she receives directly from the Plan. 12. No provision of this DRO is intended, nor shall be construed, to require the Plan to do or incur any of the following: a. make any payment or take any action which is inconsistent with any federal law, rule, regulation, or applicable judicial decision; b. provide any type or form of benefit, or any option, which is not otherwise provided for under the provision of the Plan; c. provide increased benefits; d. alter or amend the established survivor benefits of either Party, as selected and determined under the Plan by the Participant at the time of retirement; e. incur any greater cost or liability to the Retirement System or Plan than existed before the entry of this DRO; and/or, f, provide benefits to the Alternate Payee which are required to be paid to another Alternate Payee under another order previously determined to be a DRO, a Qualified Domestic 7 of this DRO to the Participant or the Alternate Payee, respectively, and it is subsequently determined that the payment should have been made to the other Party, the Parties agree that the Retirement System may adjust future payments between the Parties to correct the payments. 17. This DRO is issued pursuant to the laws of the State of Michigan relating to the division of marital property and alimony, specifically including MCL 552.18, MCL 552.101, and MCL 38.1684, which relate to the inclusion of retirement benefits in the marital estate and the determination of spousal rights with respect to such retirement benefits and Judgment of Divorce. Hon. Circuit Judge COUNTERSIGNED: Deputy Court Clerk Approved as to form and content: PLAINTIFF ATTORNEY FOR PLAINTIFF Dated: Dated: DEFENDANT ATTORNEY FOR DEFENDANT 9 February 20, 2007 By Trustee Wood — Special Resolution 1 Resolved by the Board of Trustees of the City of Lansing Policemen's and Fire Retirement System that Bruce Holliday as current chairperson shall be the official signator for all retirement system investment agreements and transactions handled by The Northern Trust Company. Adopted by the following vote: Yeas: Cochran, Holliday, Kraus, Lewis, St. Aubin, Wood. Nays: None Jeny Anab ose, Secretary Poke and Fire Retirement System Board Bruce Hollida , Chairper'0 n etiremei11\,S stem Police and Fire R y CITY OF LANSING POLICE & FIRE and ERS RETIREMENT SYSTEM MINUTES Joint Meeting February 20, 2007 Council Conference Room Thursday, 9�15 a.m. 10th Floor City Hall Lansing, MI cn �7 The meeting was called to order at 9:45 a.m. A quorum of both boards were present. ' Trustees present: (Police & Fire), Holliday, Kraus, Lewis, Wood, St. Aubin `O (ERS), Antekeier, Dedic, Korkoske, Kraus, Piloske, Wood Other presents: George Tarlas, Asset Consulting; Karen Williams, Jerry Ambrose, Finance Department; Robert Oleson, Fire Department; David Hoffman, Gabriel, Roeder, Smith and Company. Mr. David Hoffman reviewed the impact of actuarial assumption changes on the City of Lansing Police and Fire Retirement System and the Employees Retirement System if Adopted for the Fiscal Year Ending June 30, 2007. The proposed assumption changes were discussed in the six-year experience studies for the retirement systems. It was moved by Trustee Kraus and supported by Trustee Lewis to adopt the actuary assumption changes in employer contribution of an additional 1.14% as presented by Gabriel, Roeder, Smith to be used for the Police and Fire Retirement System as of December 31, 2006 for actuarial valuations, contingent upon the Employees Retirement System adoption of similar actuary assumption changes. Adopted by the Police and Fire Board: 5-0 Roll call vote: Yeas: Holliday, Kraus, Lewis, St. Aubin, Wood It was moved by Trustee Korkoske and supported by Trustee Piloske to adopt the actuary assumption changes in employer contribution of an additional 1.02% as presented by Gabriel, Roeder, Smith for the Employees' Retirement System to be used as of December 31, 2006 for actuarial valuations. Adopted by the Employees Retirement System Board: 6-1 Roll call vote: Yeas: Antekeier, Korkoske, Kraus, Piloske, Singleton, Wood Nays: Dedic Mr. George Tarlas distributed and discussed material on the Performance Results forthe Year Joint Meeting February 20, 2007 Council Conference Room Thursday, 9:15 a.m. 10th Floor City Hall Lansing, MI Page 2 Both Board discussed and approved a quarterly schedule for Joint meetings for the remainder of the year: May 17, 2007, August 21 , 2007 and November 15, 2007 and as needed. It was moved by Trustee Kraus and supported by Trustee Lewis to adjourn the meeting. The meeting adjourned at 11 :19 a.m. Minutes approved on - - D 67 rry Arrkrose, Secretary Robert Antekeier, Chairperson William Cochran, Chairperson Employees Retirement System Fire and Police Retirement System RS Gabriel Roeder Smitli & Company One Towne Square 248.799.9000 phone Consultants & Actuaries Suite 800 248.799.9020 fax Southfield, MI 48076-3723 www.gabrielroeder.com September 13,2006 CONFIDENTIAL Ms. Karen Williams Retirement Analyst Lansing Police and Fire Retirement System 124 W. Michigan Avenue, 8`h Floor Lansing, Michigan 48933 Re: Impact of Assumption Changes on Lansing Police and Fire Retirement System if Adopted for Fiscal Year Ending June 30,2007 The impact of the proposed assumption changes for the Police and Fire Retirement System are shown below if adopted for the current fiscal year. The proposed assumption changes are those discussed in the recently completed six-year experience studies for the retirement system. Police and Fire Retirement System Payroll as of 12/31/2005 $27,855,441 Estimated increase in City's % contribution as of November 1, 1.14% 2006 due to combined demographic assumption changes Estimated increase in City's $ contribution as of November 1, $334,604 2006 due to combined demographic assumption changes System Funded Ratio as of December 31, 2004 Before change 98.5% After change 97.5% _ J �J OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting March 20, 2007 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 8:32 a.m. Present: Trustees Holliday, Kraus, Lewis, Oleson, St. Aubin (9:44 a.m.), Wood Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Brian Epling, Fire Department; Jack Roberts, Brigham Smith, Law Department; Scott Dedic, Employees Retirement System Board. It was moved by Trustee Wood and supported by Trustee Lewis to approve the Official Minutes of the Police and Fire Meeting of February 20, 2007 as amended. Adopted by the following vote: Unanimously It was moved by Trustee Wood and supported by Trustee Lewis to approve the Official Minutes of the Joint Police and Fire and Employees Retirement System Meeting of February 20, 2007. Adopted by the following vote: Unanimously 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: 477. 1 death. Eleanor Martin, Fire, died 1/07/2007, age 88, spouse of retiree. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of February, 2007 amounted to$1 ,716,484.52. Total retirement checks printed for the P&F System: 626. Total retirement checks printed for both systems: 1403. Domestic relations order received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Trustee Kraus reported that the Disability subcommittee met via conference call to review Mr. Steven Mitchell request for Duty Disability. The subcommittee has recommended that Mr. Mitchell be sent to the Board's Medical Director. Regular Meeting March 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Kraus and supported by Trustee St. Aubin to refer Mr. Steven Mitchell to the Board's Medical Director for evaluation for Duty Disability retirement. Approved by the following vote: unanimously Karen Williams reported to the Board that Mr. Frank Holmes is scheduled to see the Board's Medical Director, April 4, 2007. It was moved by Trustee Wood and supported by Trustee Oleson to excuse Board Members Bernero. Adopted by the following vote: unanimously Karen Williams distributed material for Training and Education, the 2007 National Public Employees Retirement Fund Summit, April 15-17 and MAPERS Spring Conference in June. The deadline for submitting requests to attend MAPERS will be April 17. Karen Williams updated the Board regarding the Health Care Audit. There are 21 Police and Fire retirees who did not respond to the Audit. Ms. Williams reviewed the process that the Retirement Office used to send out notices for the Audit. A final notice will be mailed in April for any dependents that are dropped from the Health Care Insurance. Ms. Williams will review all potential dependents that may be removed from the Health Care. The Board inquired to legal counsel regarding any violations with dropping dependents. Jack Roberts advised that he was comfortable with the process for notifying retirees. Legal Counsel further advised the Board that it was prudent to determine what individual should be included on the medical insurance. Trustee Lewis asked for a list of non-respondents. Trustee Lewis and Trustee Holliday would like to contact the members in addition to the final letter to retirees who did not respond. Jack Roberts advised that there would be no conflict for a member of the Trustee Board contacting retirees regarding the Audit, however, not as a Trustee. Trustee Wood reported that the Joint Ad Hoc Health Committee did not meet. The Committee would like to meet with legal counsel to ask questions regarding the ordinance. Regular Meeting March 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three The Board updated the Police & Fire Retirement System Sub-Committee Members: Disability Committee - Holliday, Kraus, Lewis Investment Committee - Kraus, Oleson, Wood Education Committee - Lewis, St. Aubin, Wood Special Projects - Holliday, Kraus, Oleson, Wood Joint Ad Hoc Committee on Health Care - Lewis, St. Aubin, Wood City Attorney Brigham Smith updated Trustees regarding the Board's request for Outside Legal Counsel. Attorney Smith mailed requests for information to law firms on the City's approved list for outside counsel. The responses are expected at the end of the month. The Board will review these responses to set up interviews. Jack Roberts updated the Board regarding the Ordinance for Duty Death and Disability. Mr. Roberts had inquiries for Trustee Holliday regarding background information the ordinance change. Mr. Roberts has made progress and moved forward on the ordinance. Trustee Holliday asked to keep the Securities Lending Money item on the agenda, so the Special Projects committee can meet and discuss. Jack Roberts updated the Board on his progress for the Ordinance Changes suggested by Doug Rubley. Mr. Roberts continues to work on simplifying the language in the Ordinance. Trustee Holliday requested a list of current duty disability members forthe subcommittee to review. Jack Roberts distributed and reviewed the policy for the Duty Disability Application process. Mr. Roberts distributed a Certification of Disability and discussed that the form was used in the past by former Board Medical Director. Jack Roberts asked that the Retirement Office inquire to Doctor Roth's Office regarding if he uses the definition of disability indicated on the Certification of Disability form. Regular Meeting March 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Wood and supported by Trustee Oleson to adopt the new Duty Disability Application Process Policy and that it supersedes all other Duty Disability Application Process policies. This policy shall be attached to the minutes and also filed in the policy book with the date of this motion of adoption shown thereon. Adopted by the following vote: unanimously Attorney Brigham Smith distributed and gave an overview of the Trustee Handbook prepared by the Law Department. The Handbook contained a top down approach that includes governing legislation, ordinance, board procedures and policies. Trustee Kraus inquired regarding the Travel Policy. She requested that the Retirement office supply the updated amendments to the travel policy to the next meeting to be voted upon. Trustee Wood inquired regarding the Plan Document. Jack Roberts advised that Plan Document is the Ordinance and the summary listed in the handbook is an overview of that plan. Mr. Roberts advised that it is his understanding that the ordinance was submitted to Internal Revenue Service for approval of the plan. Jack Roberts will review Minute Master and bring documentation regarding approval of the plan. Jack Roberts suggested that Board members bring their handbooks to each meeting so that it could be updated. The Special Projects Committee will review and bring updates to the Handbook for consideration. The Board requested additional time to review the Beneficiary Nomination Form. Karen Williams updated the Board on status of the Minute Master conversion. Both the Police and Fire Retirement System and Employees Retirement System approved the conversion of minute master to electronic form. The Retirement Office has been in contact with Gabriel, Roeder, Smith and Company to begin the process this summer. Karen Williams distributed and reviewed the February Investment Report. It was moved by Trustee Holliday and supported by Trustee Lewis to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 10:11 a.m. Minutes approved on 4-l- '2-rgd f `z' , I,k, r Jerry bro e, Secretary Police & Fire Retirement System Bruce Holliday, hairperson Police & Fire Ret rement System DISABILITY APPLICATION REVIEW PROCESS When an application is made to the Police and Fire Retirement System Board (the Board) for duty disability or nonduty disability under the retirement ordinance, the member's request will be processed in the following manner: 1. The Board will receive notice that an application has been received and will refer the matter to the Disability Committee. 2. The Disability Committee shall review the application and if it deems appropriate, will refer the applicant to the Medical Director for such medical examination(s) as may be needed for the Medical Director to make a written report as to whether the member meets the medical criteria for disability retirement under the retirement ordinance. 3. The Medical Director will certify to the Board in writing his or her medical opinion regarding the claim of disability, i.e., whether such member is mentally or physically totally incapacitated for the performance of duty to the City as a police officer or firefighter and that such incapacity will probably be permanent (the Medical Report). 4. The Retirement Analyst will notify the Disability Committee when the Medical Report is received and the Disability Committee will meet for purposes of reviewing the Medical Report and making a recommendation to the Board regarding disability under the ordinance. 5. At a regular meeting, the Board will receive the Disability Committee's recommendation and review the Medical Report. The Board shall snake its determination as to whether or not it concurs with the Medical Report of the Medical Director or will take such other action as it deems appropriate under the circumstances. • The minutes of the Board meeting at which the duty disability or nonduty disability is considered shall reflect the receipt of the Disability Committee's recommendation and the receipt and review of the Medical Director's Medical Report, before the Board's action on the application. • Pursuant to HIPAA, the Medical Report will only be used by the Disability Committee and the Board for the purposes of determining the employee's eligibility for duty disability or nonduty disability under the pension plan. The original Medical Report shall be kept by the Retirement Analyst in the pension office in the employee's disability application file. Copies of the Medical Report may be disseminated by the Retirement Analyst to the Disability Committee and Board at appropriate meeting when it is to be reviewed and considered. • Pursuant to HIPAA, at any meeting at which the Medical Report has been disseminated, all copies thereof shall be collected and returned to the Retirement Analyst after review and consideration. Except for the original Medical Report, to be kept in the office file, the Retirement Analyst will destroy all copies of the Medical Report after use. Adopted and ratified the 201h day of March, 2007 by the following vote: 2 C:\DOCUME-I\KWILLIAM\LOCAL&-l\TEMP\GWVIEWER\DISABILITY APP REVIEW PROCESS 03.08.07.DOC OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting April 17, 2007 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 8:44 a.m. Present: Trustees Holliday, Kraus, Lewis, Oleson, St. Aubin, Wood Absent: Trustee Bernero r" Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Lewis and supported by Trustee Oleson to approve the Official Minutes of the Police and Fire Meeting of March 20, 2007 as amended. Adopted by the following vote: Unanimously Secretary's Report. 0 new fire member(s), 1 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 478. 2 death(s). Edna Fisher, Fire, died 3/13/2007, age 81, widow of retiree; Jennie I. Ostrander, Police, died 3/16/2007, age 78, widow of retiree. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of March, 2007 amounted to $1,714,934.70. Total retirement checks printed for the P&F System: 622. Total retirement checks printed for both systems: 1396. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Kraus and supported Trustee St. Aubin to approve the following application for Regular Age and Service Retirement: Patricia A. Bailey, Police Department, 25 years (purchasing 11 months of universal Buy-in time at retirement), age 48, effective April 21, 2007. Adopted by the following vote: unanimously Karen Williams updated the Board on the status of Mr. Steven Mitchell request for Duty Disability. Mr. Mitchell was scheduled to see the Board's Medical Director. Karen Williams updated the Board on the status of Mr. Frank Holmes request for Reinstatement to Police and Fire Retirement System. Mr. Holmes was seen by the Medical Director and the Retirement Office is waiting for Dr. Roth's report. Regular Meeting April 17, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Kraus and supported by Trustee Lewis to excuse Board Member Bernero. Adopted by the following vote: unanimously Trustee Wood inquired to the Board regarding the procedure for having a Board Member excused. Trustee Holliday asked Jack Roberts about Roberts Rules of Order. Jack Roberts advised the Board that he would check Roberts Rules and come back to the next meeting with information regarding the procedure for excusing Board Members. Karen Williams updated the Board regarding MAPERS Spring Conference in June. Hotel registrations and conference confirmations will be available at the next meeting. Karen Williams updated the Board regarding the Health Care Audit. April 17 was the deadline for submission of Audit material. There are currently 31 dependents scheduled for removal from the system. Most of these dependents were either not listed on the verification form, such as older children out of school or over 25 years of age. Each dependent scheduled for removal was reviewed by the retirement office. Trustee Wood asked for a report on the cost savings from the removal. Jack Roberts advised there is a premium-like figure that is given to the Finance Department from Blue Cross/Blue Shield. He believes a calculation can be done. Trustee Wood would like an illustrated savings and an actual savings calculation. Jack Roberts provided the Board an overview of the Domestic Relations Order and Eligible Domestic Relations Order process. He asked that any Board members who had further questions contact him. Trustee Holliday inquired to Jack Roberts if there were any further policies that are needed for Domestic Relations matters. Trustee Holliday updated the Board regarding the outside legal counsel. Trustee Holliday talked with Brigham Smith regarding the Request for Information (RFIs) mailed out. The City Attorney was unable to attend the meeting due to personal reasons. Regular Meeting April 17, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams distributed the responses to the Request for Information. Trustee Holliday asked if the City Attorney had plans to conduct interviews for the new requests for information. Brigham Smith mailed RFI s to the attorney on the City Council pre-approved lists. The Board inquired to Jack Roberts if the new RFIs were the same as the original requests sent off. Mr. Roberts informed the Board that he was not directly involved with mailing out the RFIs or the process for seeking outside legal counsel search. Mr. Roberts informed the Board that one of the original firms interviewed also prepared the format for the Request for Information. The City Attorney expressed a concern at a previous meeting to expand the search. On behalf of the City Attorney, Jack Roberts advised the board that the City Charter grants that the determination of the need for outside legal counsel be made by the City Attorney's office. A motion by the Board to hire legal counsel is ultra vires and beyond the scope of what it can do. Further, the selection of outside legal counsel is a determination made by the City Attorney granted under the City Charter. The Board discussed the process of establishing the need for outside legal counsel. Trustee Holliday asked for an explanation of ultra vires. Jack Roberts said the City Charter and Ordinance provide and dictate that the City Attorney shall be the legal counsel for the Board. Ultra vires means that it is not within the Board's authority to act. The legal effect of an ultra vires act would make the action void. The Board discussed the circumstances of how outside legal counsel would be utilized. The Board discussed the language in Public Act 314. Jack Roberts advised that unless there is a conflict, the decision to hire outside legal services rests with the City Attorney's Office. Trustee Holliday inquired if outside legal counsel can be used to enhance or supplement the City Attorney Office. Trustee Holliday and Trustee Kraus expressed concern and a desire that the Board set up a policy to decide when and how outside legal services are used. It was moved by Trustee Lewis and supported by Trustee Oleson that under the provisions of Act 314 that empower the Board with the authority to retain services and pay for those services through investment earnings, that the Board hire VanOverbeke, Michaud and Timmony as outside legal counsel to assist the City Attorney's office as the Board directs and that the cost be paid from the Securities Lending Monies. Trustee Wood offered a friendly amendment that a policy for outside legal service is developed for the use of outside legal counsel and this be added to the motion. Trustee Lewis accepted the friendly amendment to his original motion. Regular Meeting April 17, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four A roll call vote was called. Before the roll call vote, Jack Roberts, on behalf of the City Attorney, restated that the determination of outside legal counsel can only be made by the City Attorney in consultation with the Board. The vote on the motion for the Board to obtain outside legal counsel is ultra vires and void. The motion for the use of outside legal counsel was adopted by the following roll call vote: 5-1 Yeas: Holliday, Lewis, Oleson, St. Aubin, Wood Nays: Kraus It was moved by Trustee St. Aubin and supported by Trustee Oleson that the chair make contact with VanOverbeke, Michaud and Timmony to obtain a draft contact to be reviewed by the City Attorney's Office. Adopted by the following vote: 5-1 Jack Roberts updated the Board on the Ordinance for Duty Death and Disability. Trustee Holliday updated the Board on the Securities Lending Money Committee. Trustee Oleson asked for an explanation of Securities Lending. Jack Roberts gave a brief overview of securities lending. Trustee Holliday informed the Board that a review of the securities lending will be done in the subcommittee. Trustee Wood reported that the Joint Ad Hoc Health Committee did not meet. The Committee would like to meet with legal counsel to ask questions regarding the ordinance. Trustee Holliday requested a list of current duty disability members for the subcommittee to review. Jack Roberts provided updates to the Trustee Handbook and an overview of the updates. Karen Williams distributed and reviewed the March Investment Report. Ms. Williams announced that it was time for the quarterly cash withdrawal. Asset Consulting informed the Board Integrity will be funding around the same time. The security lending account also may need adjustment. Previous practice by the Deputy Finance Director was to move excess amounts over $100,000 from cash to Investment portion of Securities Lending Fund. It was moved by Trustee Lewis and supported by Trustee St. Aubin to move $94,494.19 from cash to the investment portion of the Northern Trust Company Securities Lending Fund. Adopted by the following vote: unanimously It was moved by Trustee Kraus and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 10:31 a.m. Minutes approved on 5 is-_o,7 --VZ',1 A �Iz_ Jerry Am rose, Secretary j� I" 1 Police & ire Retirement System Bruce olliday, hairperson Police Fire Re 'rement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM(REVISED) Regular Meeting May 15, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall _. r� Lansing, MI r c) �7 The Board met in regular session and was called to order at 8:31 a.m. �^ c; cs i_1 Present: Trustees Holliday, Kraus, Lewis, Oleson, St. Aubin (8:35), Wood — 6. Absent: Trustee Bernero ►r� Others: Karen E. Williams, Finance Department; Jack Roberts, Law Department. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official Minutes of the Police and Fire Meeting of April 17, 2007 as amended. Adopted by the following vote: 5 — 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 rein statement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 477. 3 death(s). Rose Marie Long, Police, died 3/27/2007, age 84, widow of retiree; Oscar Face, Police, died 3/17/2007, age 78, beneficiary to receive 50%; Glenn L. Orler, Fire, died 3/2/2007, age 82, beneficiary to receive 50%. Refunds made since the last reg- ular meeting amounted to $0. Retirement allowances paid for the month of April, 2007 amounted to $1,710,741.66. Total retirement checks printed for the P&F System: 621. Total retirement checks printed for both systems: 1395. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Karen Williams updated the Board on the status of Mr. Steven Mitchell request for Duty Disability. Mr. Mitchell was re-scheduled for May 23, 2007 to see the Board's Medical Director, due to a death in Dr. Roth's family. Karen Williams reported Mr. Todd B. Williams, Police's request for refund of accumulated contribution. Mr. Williams was not vested. The Retirement Office has received a copy of Mr. Williams notarized request. It was moved by Trustee Kraus and supported by Trustee Lewis to approve Mr. Williams' request for refund of accumulated contribution. Adopted by the following vote: 6-0 Regular Meeting May 15, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two The Board discussed that Mr. Williams had equipment that had not been returned. Jack Roberts advised the Board that he would do research regarding if the check could be withheld. it was moved by Trustee St. Aubin and supported by Trustee Kraus to withhold Mr. Williams check until legal counsel's review and verification that the Mr. Williams accumulated contributions may legally be withheld until his equipment is returned. Adopted by the following vote: 6-0. The Board discussed the status of Mr. Frank Holmes request to be taken off Police and Fire Retirement System duty disability retirement because he believes he no longer meets the duty disability standard. Karen Williams distributed the medical director's report. Jack Roberts advised the Board that he met with representatives in the City Human Resources Department. Mr. Roberts was advised that before Mr. Holmes could become eligible to return to work in the Lansing Police Department (LPD),he must be able to meet City police officer employment requirements and MCOLES requirements. One of the City requirements includes a Functional Capacity Evaluation (FCE)to determine if Mr. Holmes can perform the required job duties. Mr. Roberts talked with Amy Frasier in Human Resources. She offered to assist the Board with arranging for the functional capacity evaluation. Jack Roberts further advised that Mr. Holmes should not be removed from duty disability, until he is qualified to return to work and the Board takes action on the request. Mr. Holmes would also need to pass a MCOLES re-certification. Trustee Holliday asked the retirement office to inform the Board of the cost of the functional capacity evaluation. It was moved by Trustee Lewis and supported by Trustee Wood that before the Board takes action on Mr. Holmes request and on recommendations of the medical director, Mr. Holmes will need to have a FCE. Therefore, Amy Frazier may arrange a FCE to be paid for at the Board's expense, in furtherance of the physical evaluation under the duty disability concerns. Adopted by the following vote: 6 - 0. Jack Roberts advised the Board that he would talk with Amy Frazier to send the completed evaluation to the Retirement Office. Trustee St. Aubin asked to be excused for the remainder of the meeting. Regular Meeting May 15, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Jack Roberts advised the Board regarding Trustee Wood's inquiry to the Board regarding the procedure for having a Board Member excused. Mr. Roberts reviewed the membership of the Board and basic procedures in the Retirement Ordinance. The ex-officio members are the Mayor and Treasurer and are on the Board because of their Office. Jack Roberts reviewed the section of the Ordinance on the absences and advised that the ex-officio members do not need to be excused. Karen Williams updated the Board regarding MAPERS Spring Conference in June. Trustee Lewis inquired about splitting the cost of the conference for Amy Kraus and Jack Roberts. Jack Roberts informed the Board that the City Attorney's Office will be billed for his attendance. It was moved by Trustee Lewis and supported by Trustee Oleson to split the cost of the City Treasurer's attendance for MAPERS conference. Adopted by the following vote: 5 — 0. Karen Williams updated the Board regarding the Health Care Audit. The Benefits Office is removing dependents that were not verified on the audit form. Open Enrollment is also occurring. Dependents that have been removed will receive COBRA information. Jack Roberts reviewed a Freedom of Information Act Request (FOIA) received by the Retirement Office. A professor of finance from Oklahoma State University requested under FOIA certain information on the Board's financial investments. Mr. Roberts discussed the information request with George Tarlas, Asset Consulting. The City Attorney's Office responded within the appropriate FOIA time by granting the request in part and denying the request in part under PA314. Mr. Tarlas informed Mr. Roberts that there were no proprietary issues regarding this request. The Board may waive its rights under PA 314 and voluntarily provide the year-end investment financial reports. However, in most of the individual contracts with the Investment managers, the fee schedule is confidential. It was moved the Trustee Kraus and supported by Trustee Oleson to voluntarily provide the year-end financial investment reports minus the fee schedule. Adopted by the following vote: 5 — 0. Jack Roberts advised the Board that the Retirement Office can provide the Law Department with a copy of the December Investment Report prepared by Asset Consulting and the Law Department will follow up with the professor. Regular Meeting May 15, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Holliday reported to the Board that he was instructed by the Board to contact Vanoverbeke, Michaud and Timmony. The law firm sent a response to Trustee Holliday that was forwarded to the City Attorney. The City Attorney will address the information at the Joint Meeting. Karen Williams distributed information regarding digital recording device for the Retirement Boards. The Police and Fire Board would pay half the cost of the recording device and the transcription kit. Trustee Holliday informed the Board that members of the Police Department use similar equipment. Karen Williams informed the Board that tapes are generally kept one year, if possible. The new equipment would allow meetings for an entire year to be on one tape. Jack Roberts updated the Board on the Ordinance for Duty Death and Disability,the Doug Rubley Ordinance Changes and the Beneficiary Nomination Form. Trustee Holliday updated the Board on the Securities Lending Money Committee. Trustee Wood reported that the Joint Ad Hoc Health Committee met with Doug Rubley. Mr. Rubley gave a detailed review of health care issues and the ordinance. The next meeting was announced for June 1, 2007. Karen Williams distributed and reviewed the April Investment Report. Karen Williams reported to the Board that Integrity has been funded and will show up on May's Investment Report. Also, in May, five million dollars was withdrawn for cash flow needs as follows: 2 millions from Integrity, 1.5 million from Artisan and 1.5 million for Delaware. It was moved by Trustee Kraus and supported by Trustee Oleson to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 9:45 a.m. Minutes approved on 6-cv-o2O0'r 1 J ry A brose, Secretary P ice & ire Retirement System I Bruc Holliday, Chai person Police & Fire Reti ent System CITY OF LANSING POLICE & FIRE and ERS RETIREMENT SYSTEM MINUTES Joint Meeting May 17, 2007 Council Conference Room Thursday, 9:30 a.m. 10th Floor City Hall Lansing, MI ; �-,✓ Ci ; i The meeting was called to order at 9:35 a.m. A quorum of both boards were present. Trustees present: (Police & Fire), Holliday, Kraus, Lewis, Oleson, Wood, St. KbM.2 (ERS), Antekeier, Dedic, Korkoske, Kraus, Murphy Piloske, Wood Other presents: George Tarlas, John Jackson, Asset Consulting; Karen Williams, Finance Department, Tom Cochran, Fire Department; Nathan Baldermann, Rehman Robson; Karl L. Knas, NorthPointe Capital. Mr. Nathan Baldermann, Rehman Robson presented a review of the financial audit of the City of Lansing Police and Fire Retirement System and the Employees Retirement System for the Fiscal Year Ending June 30, 2007. The Police and Fire Retirement System Board presented a plaque to Tom Cochran in appreciation for his years of service to the Board. Mr. Karl L. Knas, NorthPointe Capital presented a portfolio review of the funds held by the Police and Fire and the Employees Retirement System. George Tarlas and John Jackson of Asset Consulting Group presented a quarterly review of investment performance results for the Employees Retirement System and The Police and Fire Retirement Systems. Asset Consulting Group also mentioned possible Hedge fund equity strategy to be discussed at a future meeting. The Employees Retirement System board discussed moving to a quarterly cash flow withdrawal system. It was moved by Trustee Korkoske and supported by Trustee Dedic that the Employees Retirement System would move to a quarterly cash flow withdrawal system to meet cash need. The withdrawal from funds would be based on recommendations from Asset Consulting and reported to the Board at their meetings. Adopted by the following vote: 6 — 0. The Boards recessed at 11:15 a.m. The Boards re-convened at 11:23 a.m. as the Subcommittee on Outside Legal Counsel Meeting. Trustee Wood suggested a policy based on who, what, when, how and why to use outside legal counsel. The Boards discussed issues that included, a person requesting outside legal counsel would need to submit the request to the Board in writing and responses should be in writing. The Boards suggested who is authorized to get in touch with outside legal counsel. The Boards agreed that the Board action would be needed to authorize Chair and Vice Chair to contact outside legal counsel. The meeting adjourned at 11:32 a.m. Minutes approved on Jer A bro , Secretary Robert Antekeier, Chairperson Bruce Holliday, Chairperson Employees Retirement System Fire and Police Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING F� POLICE AND FIRE RETIREMENT SYSTER, 4 Regular Meeting June 19, 2007"-. Council Council Conference Room Tuesday, 8:30 a:-m.- - ; 10th Floor, City Hall Lansing, MI co The Board met in regular session and was called to order at 8:32 a.m. Present: Trustees Holliday, Lewis, Kraus (8:34), Oleson, St. Aubin, Wood — 6. Absent: Trustee Bernero. Others: Karen E. Williams, Finance Department; Jack Roberts, Brigham Smith, Law Department; Scott Dedic. It was moved by Trustee Wood and supported by Trustee Lewis to approve the Official Minutes of the Police and Fire Meeting of May 15, 2007 as amended. Adopted by the following vote: 6 — 0. It was moved by Trustee Oleson and supported by Trustee Kraus to approve the Official Minutes of the Joint Police and Fire System and the Employees Retirement System Meeting of May 17, 2007 as amended. Adopted by the following vote: 6 — 0. Secretary's Report. 1 new fire member(s), 0 new police members, 0 reinstatement(s), 1 refund(s), 0 transfers, 0 retired. Total: Active membership: 477. 4 death(s). George A. Monroe, Police, died 4/15/2007, age 81, no beneficiary; John J. Devlin, Fire, died 5/2/2007, age 75, no beneficiary; Craig R. DeSonia, Police, died 5/7/2007, age 59, beneficiary to receive 50%; William J. Cavanaugh, Police, died 5/12/2007, age 78, beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $ $18,586.41. Retirement allowances paid for the month of May, 2007 amounted to $1,729,200.15. Total retirement checks printed for the P&F System: 622. Total retirement checks printed for both systems: 1400. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Regular Meeting June 19, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams updated the Board on the status of Mr. Steven Mitchell's request for Duty Disability. The retirement analyst contacted the Board's Medical Director regarding the status of the doctor's report. The Retirement Office was informed that the medical report was completed but had not been signed by Dr. Roth. Karen Williams reported to the Board that the Retirement Office received a request for duty disability for Mr. Lamarr Bowers of the Fire Department. The request was referred to the duty disability subcommittee. Karen Williams updated the Board on the status of Mr. Frank Holmes' request for reinstatement to the Police and Fire Retirement System. Mr. Holmes was scheduled for his Functional Capacity Evaluation, June 12-13. Karen Williams updated the Board on upcoming MAPERS Fall Conference, September 16- 18. Jack Roberts gave a report on recent house bills that affect retirement system discussed at the MAPERS conference. The legislative bills 4805, 4806 and 4809 are opposed by MAPERS and the Michigan Municipal League. Attorney Roberts discussed a bill that caps state retiree benefit levels. The text of the bill was broad enough to affect municipalities. Trustee Wood asked that a resolution be sent to Lansing elected state officials that the City of Lansing Retirement system opposes the proposed legislation. It was moved by Trustee Wood and supported by Trustee Lewis to prepare a resolution to oppose House bills 4805, 4806, 4809 to be sent to Lansing area elected state officials. Adopted by the following vote: 6-0 Karen Williams distributed the Gabriel, Roeder, Smith (GRS)Actuarial Contract and fees for the 2007/2008 fiscal year. Trustee Wood asked for detailed billing regarding the fees listed in the letter. Trustee Oleson inquired when the last time GRS has been put to a competitive bid. Trustee Holliday inquired to legal counsel if there was anything in the ordinance that governed this bid. Jack Roberts advised that the Board has the ability to get Requests for Information for actuarial services. Jack Roberts advised that it would be appropriate to have Gabriel, Roeder, and Smith come before the Board to explain the bill and describe the scope of their services. Regular Meeting June 19, 2007 Council Conference Room Tuesday, 8:30 a.m, 10th Floor, City Hall Lansing, MI Page Three Karen Williams updated the Board regarding the Duty Disability outside income verification. There were six duty disabilities retirees that have not sent in their verification form. The retirees have received a second notice and have until June 29 to send in requested information. The Board discussed the Duty Disability income verification process. Trustee Kraus expressed concerns regarding the retirees who do not report. She suggested reviewing and updating the process. Jack Roberts inquired about how adjustments are made. Karen Williams reviewed the process and informed the Board that changes are made in October. The Board discussed having duty disability retirees send in tax returns to verify their income with the certification form. The duty disability subcommittee will review the current policy. Trustee Wood reported to the Board that she is working on the Policy for Outside Legal Counsel and will have it available for the next meeting. City Attorney Brigham Smith updated the Board regarding Outside Legal Counsel. Attorney Smith completed interviews for three firms that submitted Request for Information proposals and were on the City Council's pre-approved list. Attorney Smith planned to proceed with retaining Clark Hill as outside legal counsel for the Police and Fire Retirement System. Attorney Smith provided a summary of their qualifications. He reiterated his position that the Board's action to hire outside legal counsel was ultra vires. The Board inquired to the City Attorney regarding how Clark Hill will be paid. Attorney Smith stated that City will pay the costs of Clark Hill. City Attorney Smith reported that he contacted George Tarlas of Asset Consulting. He informed the Board that George Tarlas stated that he was asked by the Board to provide names for outside legal counsel. The Board inquired to legal counsel regarding the effect of its previous motion to hire VanOverbeke, Michaud and Timmony. Jack Roberts advised that motion was outside the authority of the Board, and the result of the motion was null and void. Attorney Brigham Smith reported to the Board that the City of Lansing Retirement System sets up the City Attorney as legal counsel. Attorney Smith stated that it was his opinion that the Board's action to attempt to hire VanOverbeke was ultra vires. Attorney Smith stated that as legal advisor to the Board, it is the City Attorney's opinion that he is charged with obtaining special outside counsel. Attorney Smith selected Clark Hill to fulfill this role. Regular Meeting June 19, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, M I Page Four The Board inquired about the process if the Board did not agree with the City Attorney. Attorney Smith further informed the Board that there is no internal mechanism to change this authority, outside of litigation. Attorney Smith requested additional time to research and review the question. Karen Williams reported to the Board that the Retirement Office received a letter requesting an investigation regarding a retiree's duty disability status. The retiree converted to Regular Age and Service in 1981. Therefore, the question regarding the retiree's duty disability is a non-issue. The Retirement Office will respond to letter. Jack Roberts updated the Board regarding the accumulated contributions check of Mr. Todd Williams. Jack Roberts reported to the Board that he spoke with the Retirement Analyst about holding the check until the equipment was returned. Karen Williams informed Jack Roberts that Mr. Williams stated that he had returned his Lansing Police Department equipment to his attorney. Mr. Todd Williams came to the Retirement Office and requested his check while Mr. Roberts was on the phone with the Mr. Williams' attorney. Jack Roberts advised Karen Williams that there was no legal authority for the Board to withhold the check. Attorney Roberts sent a follow-up letter to the attorney with a list of the outstanding equipment. Mr. Roberts informed the Board that there is an outstanding lawsuit and there may be some leverage to have the equipment returned. Jack Roberts updated the Board regarding the Freedom of Information Request. The Retirement Office supplied a copy of 2005 Investment Year-End Reports. Mr. Roberts found information for some of the previous years and supplied that the Oklahoma State University professor requested the information. Jack Roberts reported to the Board that he is researching an inquiry sent to the Law Department by the Retirement Office. The individual is a city employee who currently works for the Police and Fire System. This employee was a former member of the Employees Retirement System wishes to use money from the Defined Contribution Money Purchase program to purchase universal buy-in time. Jack Roberts updated the Board on the Ordinance for Duty Death and Disability, the Doug Rubley Ordinance Changes, the Beneficiary Nomination Form and the Duty Disability Re- examination Process. Trustee Wood reported to the Board on the Joint Ad Hoc Health Committee on Health Care. Mr. Alan VanGorder will be at the next meeting to discuss questions sent to him. The next meeting is scheduled for Friday, June 22. Regular Meeting June 19, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Karen Williams distributed and reviewed the May Investment Report. Karen Williams discussed the Securities Lending cash flow needs. The Retirement Office recommends $50,000 for the upcoming fiscal year to cover administrative needs for the Police and Fire Board expenses. Karen Williams further recommended a separate accounting for Security Lending Account. Trustee Wood inquired how Securities Lending monies are accounted. Karen Williams explained that the IFAS system separates the Retirement System expenses into three sections: Payroll, Investments, & Miscellaneous (which contains Security Lending monies). It was moved by Trustee Wood and supported by Trustee Oleson to withdraw $50,000 from Northern Trust to cover administrative needs and provide a separate accounting of the Securities Lending Account. Trustee Wood added to her motion that the Retirement Office provides an annual reporting of the Retirement System expenses. Karen Williams reported that the Federal Identification number for the Police and Fire System has been completed. Tom Korkoske will be submitting a bill for outside legal counsel for assistance on the completion of the project. It was moved by Trustee Wood and supported by Trustee Lewis to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 11:05 a.m. Minutes approved on 7 3;.-- a06-7 Jer A rose, Secretary(/ Po c & Fire Retirement System Bruce Holliday, Cha rperson Police & Fire Retirement System CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM SPECIAL MEETING MINUTES (Revised) Special Meeting July 3, 2007 Council Conference Room Tuesday, 8:30 �,m. 10th Floor City Hall Lansing, MI The meeting was called to order at 8:35 a.m. M Trustees present: Holliday, Kraus, Oleson, St. Aubin, Wood. — 5. Trustee absent: Bernero, Lewis (excused) coo Other presents: Esther Croff, Finance Department; Jack Roberts, Law Department. Trustee Kraus reported to the Board that the Disability subcommittee met and reviewed the Medical Report from Dr. Roth regarding Mr. Steven Mitchell. The Disability subcommittee accepted the report and recommended approval of duty disability. It was moved by Trustee Kraus and supported by-Trustee Oleson that the Board has reviewed and accepted of the Medical Report and recommends Mr. Steven Mitchell for duty disability. Adopted by the following vote: 5-0. Trustee Holliday reported to the Board that the Disability subcommittee met and reviewed Mr. Lamarr Bowers' request for duty disability. It was moved by Trustee Oleson and supported by Trustee St. Aubin to refer Mr. Lamarr Bowers to the Board Medical Doctor for regarding his request for duty disability. Adopted by the following vote: 5- 0. Attorney Jack Roberts advised the Board regarding Mr. Frank Holmes request for re- instatement to Police Department. Mr. Roberts updated the Board that Mr. Holmes has had his functional capacity evaluation (FCE) test rescheduled. Trustee Wood reported to the Board that at the Employees Retirement System meeting, an accounting was requested for the Securities Lending Accounting to verify that money is being properly transferred to and from appropriate accounts. Trustee Wood asked that the Police and Fire Board also ask Tom Korkoske to provide a similar accounting of the Securities Lending Account. Special Meeting July 3, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Two Trustee Wood reported to the Board that there was no official motion to take monies from the Securities Lending Account to pay outside legal counsel's fees for the Federal Identification number. It was moved by Trustee Wood and supported by Trustee Murphy to approve the $175 payment for fees from the Securities Lending Account for outside legal counsel in completing the Federal Identification number and that the chairman is allowed to be the signatore of the account. Adopted by the following vote: 5-0. The Board adjourned at 8:41 a.m. Minutes approv ,d n BruAcla 4 y, Chairperson J rry Ambrose, Secretary Police & Fire Retirement System mpioyees Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM (REVISED) Regular Meeting August 21, 2007 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 8:30 a.m. Present: Trustees Holliday, Kraus, Lewis, Oleson, Wood — 5. Absent: Trustee Bernero, St. Aubin. Others: Karen E. Williams, Finance Department; Jack Roberts, Law Departmarat; Paul Novak, Clark Hill Law Office. It was moved by Trustee Oleson and Trustee Kraus to accept the Official Mir ute-`srof tfte Police and Fire Meeting of July 31, 2007. Adopted by the following vote: unanimously 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: 484. 0 death(s). Refunds made since the last regular meeting amounted to $ 0. Retirement allowances paid for the month of July, 2007 amounted to $1 ,709,269.91. Total retirement checks printed for the P&F System: 620. Total retirement checks printed for both systems: 1401. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Holliday and supported by Trustee Lewis to approve the following Application for Regular Age & Service Retirement: Raymond Salazar, Police Department, 29 years, 11 month service, age 54, effective September 1, 2007. Karen Williams updated the Board regarding the pending requests for duty disability for Lamarr Bowers and Marie Rosicky. Ms. Williams reported that Mr. John Lindsey, Fire Department has requested evaluation for duty disability. Regular Meeting August 21, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Trustee Lewis notified the Board that the disability subcommittee met and reviewed Mr. Lindsey's request and recommended sending him to the Medical Doctor. It was moved by Trustee Lewis and supported by Trustee Oleson to send Mr. John Lindsey to the Board's Medical doctor for duty disability evaluation. Adopted by the following vote: unanimously Karen Williams reported to the Board that Mr. Richard B. Radigan and Ms. Paula Paschal's have requested Refunds of their Accumulated Contributions. It was moved by Trustee Oleson and supported by Trustee Wood to accept the request for Refund of Accumulated Contributions for Mr. Richard B. Radigan of the Lansing Fire Department and Ms. Paula Paschal of the Lansing Police Department. Adopted by the following vote: unanimously Jack Roberts updated the Board regarding the status of Mr. Frank Holmes' Request for Reinstatement to the Police & Fire Retirement System. The Functional Capacity Evaluation (FCE) was received by the Retirement Office and distributed to the disability committee. Trustee Holliday referred the FCE report to the disability subcommittee for review. It was moved by Trustee Oleson and supported by Trustee Lewis to excuse Trustee St. Aubin. Adopted by the following vote: unanimously Karen Williams distributed confirmations for members of the Board attending the upcoming MAPERS Fall Conference, September 16-18. Ms. Williams reminded members of the deadline for the International Foundation 53rd U.S. Annual Employee Benefits Conference that will be held in Anaheim, California. Ms. Williams requested names of delegates for the MAPERS conference. The delegates names were Trustee Lewis, Trustee Kraus and Trustee Oleson as an alternate. Trustee Kraus inquired to the Board regarding attending the International Foundation 53rd U.S. Annual Employee Benefits Conference. It was moved by Trustee Kraus and supported by Trustee Oleson to allow more than two trustees to go to the International Foundation 53rd U.S. Annual Employee Benefits Conference. Adopted by the following vote: unanimously Regular Meeting August 21, 2007 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 Kraus to allow the chair to go to International Foundation 53rd U.S. Annual Employee Benefits Conference. Adopted by the following vote: unanimously Karen Williams updated the Board regarding the Duty Disability outside income verification. There were four duty disabilities retirees that have not sent in their verification form. A final notice was sent to retirees by certified mail. The retirees had not sent in their verification forms. Thus the Retirement Office had instructed the Payroll Office to stop their direct deposit and print checks that could be held until the verifications were returned pending approval from the Board. It was moved by Trustee Wood and supported by Trustee Kraus to suspend retirement payments of duty disabilities retirees that had not sent in their certification form. Adopted by the following vote: unanimously Jack Roberts updated the Board regarding the Duty Disability Re-examination Process. Mr. Roberts can review the proposed policy the disability committee when they meet. Trustee Wood reported to the Board regarding the Joint Ad Hoc Health Care Committee Report. The Committee discussed having a joint education seminar for retirees. Trustee Wood distributed a draft and updated the Board regarding the Outside Legal Counsel Policy. It was moved by Trustee Oleson and supported by Trustee Wood to approve to adopt the new Outside Legal Counsel Policy and that supersedes all other Outside Legal Counsel Policies. This policy shall be attached to the minutes and also files in the policy book with the date of this motion of adoption shown therein. Attorney Jack Roberts advised the Board regarding the City Attorney's previous legal opinions regarding outside legal counsel. Adopted by the following vote: unanimously Regular Meeting August 21, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Page Four Lansing, MI The meeting recessed at 8:54 a.m. The meeting reconvened at 9:23 a.m. It was moved by Trustee Oleson and supported by Trustee Lewis to excuse Trustee Wood from the July 31, 2007 meeting. Approved by the following vote: unanimously The meeting adjourned at 9:24 a.m. Minutes approved on Jar A rose, Secretary P1 ice & Fire Retirement System *Bruceolliday, hairperson Police & Fire R tirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES 5� r CITY OF LANSING -� POLICE AND FIRE RETIREMENT SYSTEM",' Regular Meeting �- J 9 9 September 25, 200T�� Council Conference Room Tuesday, 8:30 am. r 10th Floor, City Hall r Lansing, MI The Board met in regular session and was called to order at 8:32 a.m. Present: Trustees Holliday (8:39), Kraus, Lewis, Oleson, St. Aubin, Wood — 6. Absent: Trustee Bernero. Others: Karen E. Williams, Jerry Ambrose, Finance Department; Jack Roberts, Law Department; Paul Novak, Clark Hill Law Office. Trustee Wood inquired to Jack Roberts regarding if the chairman could make a motion. Trustee Oleson believed that he made the motion and not the chairman. Jack Roberts advised that the motion can be reaffirmed to be effective on August 31, 2007 or the minutes can be tabled until the next meeting. It was moved by Trustee Wood and Trustee Kraus to table the Official Minutes of the Police and Fire Meeting of August 21, 2007 with a date certain until the next meeting. Adopted by the following vote: 5-0. It was moved by Trustee Wood and supported by Trustee Oleson to approve the Official Minutes of the Joint Police and fire and the Employees Retirement System Meeting of August 21, 2007. Adopted by the following vote: 5 — 0. Trustee Holliday arrived to the meeting and assumed the chair. Trustee Wood inquired to Trustee Holliday if he remembered making a motion to approve the accumulated contributions. He did not. The Retirement Analyst was asked to review the recording of the meeting for verification. Regular Meeting September 25, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Secretary's Report. 1 new fire member(s), 0 new police members, 0 reinstatement(s), 2 refund(s), 0 transfers, 1 retired. Total: Active membership: 482. 1 death(s). Charles E. Kent, Police, died 8/5/2007, age 88, no beneficiary. Refunds made since the last regular meeting amounted to $ 51,122.78, Retirement allowances paid for the month of August, 2007 amounted to $1,728,321.59. Total retirement checks printed for the P&F System: 626. Total retirement checks printed for both systems: 1406. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Lewis and supported by Trustee Oleson to approve the following Application for Regular Age & Service Retirement: Raymond Salazar, Police Department, 29 years, 11 month service, age 54, effective September 1, 2007. Adopted by the following vote: 6-0. Karen Williams updated the Board regarding the pending requests for duty disability for Lamarr Bowers, Marie Rosicky and Mr. John Lindsey. It was moved by Trustee Lewis and support by Trustee Oleson to table the pending requests for duty disability. Trustee Lewis withdrew his motion and asked that the pending requests be referred to the disability subcommittee. Karen Williams reported to the Board that Ms. Jennifer N. Mitchell requested her Refunds of their Accumulated Contributions. It was moved by Trustee St. Aubin and supported by Trustee Lewis to approve the request for Refund of Accumulated Contributions for Ms. Jennifer N. Mitchell of the Lansing Police Department. Adopted by the following vote: 6 -0 . It was moved by Trustee Lewis and supported by Trustee Kraus to refer Mr. Frank Holmes' Request for Reinstatement to the Police & Fire Retirement System to the disability subcommittee for review. Adopted by the following vote: 6 -0. Regular Meeting September 25, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee St. Aubin expressed his concern over receiving differing opinions from legal counsel regarding a pension for a terminated employee. Trustee St. Aubin contacted Jack Roberts who advised at the time that the employee would be eligible to receive a pension. Trustee St. Aubin stated that based partly on this opinion that was given to the employee, the employee agreed to a termination rather than resignation. A month later, Trustee St. Aubin reported that he received an e-mail from Jack Roberts detailing that upon further research that the employee would not be eligible for a retirement benefit. Jack Roberts responded he assumed at the time that the opinion he gave originally was correct. Attorney Roberts reviewed the Police and Fire Pension Statute 345 and found a section that was different from state law. The terminated employee is not ineligible to receive his accumulated contributions, but the employee is not entitled to a deferred pension. Jack Roberts apologized for the incorrect information and that he understands that there was a pending grievance. Trustee Holliday inquired if the Board could be brought into litigation regarding this concern. Jack Roberts advised that he believed that the Board is fully covered through the City's Errors and Omissions insurance. Trustee Holliday requested that Jack Roberts research the case of Tim Poxson because he believed it was a similar case. Karen Williams updated the Board regarding the Duty Disability outside income verification. One retiree needed to be adjusted because the outside income in addition to the retirement income was above annual compensation for his position. Karen Williams updated the Board regarding the Due Diligence Visit to Asset Consulting Group in Missouri. Karen Williams distributed flight arrangements for trustee who were attending. Trustee Wood reported to the Board that the Employees Retirement System tabled the Gabriel, Roeder, Smith and Company Fees until the next Joint meeting. Trustee Holliday reported that he spoke with the Employees Retirement System chair about having a joint subcommittee meeting to review the Fees with Gabriel, Roeder, Smith and Company. Trustee Holliday referred GRS fees to the Special Projects Committee. Trustee Holliday requested that upon reviewing the Police and Fire Retirement Ordinance, he requested Section (9) Method of making payments researched to see if the Board was in compliance. Regular Meeting September 25, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four The Board discussed the proposed ordinance to designate another individual to act on the Mayor's behalf on the Police and Fire Retirement System Board. Jerry Ambrose reported to the Board that the due to the mayor's many obligations and time commitments, he wished to have the option to designate an individual. Mr. Ambrose informed the Board that the Mayor can designate any active full-time employee. Trustee Holliday requested that the proposed ordinance be placed under Pending items for the next meeting. Trustee Holliday inquired upon the progress of the citizen's representative to the Police and Fire Retirement Board. Trustee Wood informed the Board that the citizen representative pending in City Council. It was moved by Trustee Oleson and supported by Trustee Wood to reaffirm the motion to accept the request for the Refund of Accumulated Contributions for Mr. Richard B. Radigan of the Lansing Fire Department and Ms. Paula Paschal of the Lansing Police Department and that the ratification is effective as of 8/21/2007. Adopted by the following vote: unanimously Trustee Oleson requested the legal counsel to research that situation of a member of the Police and Fire system who purchases universal buy-in time. Trustee Olsen inquired if the member would be eligible to receive the post-retirement cost of living increases provided that the time purchased gave the member twenty-years of service. Trustee Holliday requested clarification regarding the age at which a member can retire and the compulsory age of retirement. Trustee Wood updated the Board that the Joint Ad Hoc Health Committee on Health Care regarding the health care summit scheduled for next Spring 2008. Mr. Alan VanGorderwill be at the next meeting October 5, 2007. Karen Williams distributed and reviewed the Investment Report. Karen Williams reported to the Board the quarterly cash flow withdrawal to be deposited into Comerica: 2 million from UBS, 1.2 million from Delaware, 800,000 from Artisan, 1 million from ING/Clarion. Karen Williams reviewed the Securities Lending Report and provided a revised July 2007 report, with retroactive adjustments to pay expenses for FY 2005, 2006 2007. It was moved by Trustee Wood and supported by Trustee Oleson to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 9:29 a.m. 12-310 Minutes approved on 10 L- . Jer `A - ro , Secretary P dice Fire Retirement System 4B"ruce olliday, C irperson Police & Fire Retir ment System CITY OF LANSING POLICE & FIRE and ERS RETIREMENT: SY-353TEM' MINUTES f f� Joint Meeting November:l'5, �(30.7 Council Conference Room Thursday, 9;:1 5 a:m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:37 a.m. A quorum of the Employees Retirement System board was present. Trustees present: (Police & Fire), Kraus, Oleson, Wood (ERS), Antekeier, Dedic, Korkoske, Kraus, Piloske, Wood Other presents: John Jackson, Asset Consulting; Karen Williams, Jerry Ambrose, Finance Department; Blair Renfrew, Clark Hill Law Office; Harland Abraham, Mark Fetters, David Smith, Northern Trust; Jack Roberts, Law Office. Mr. Harland Abraham presented a review and explanation of Northern Trust services for the City of Lansing Police and Fire Retirement System and the Employees Retirement System. He introduced Mr. Mark Fetters as the Boards' new Relationship Manager and Mr. David Smith who will handle the Global Investments Relationships. The Joint Boards discussed the proposed ordinance to designate another individual to act on the Mayor's Behalf on the Employee's Retirement System Board and the Police and Fire Retirement Board. Mr. Jerry Ambrose reported to the Board that the Mayor wished to have the option to designate someone to regularly attend and participate in the meeting. Some trustees expressed concern regarding the ordinance's original purpose of having the Mayor sit on the Board and its importance. It was moved by Trustee Dedic and supported by Trustee Murphy to not recommend the proposed ordinance to designate another individual to act on the Mayor's behalf on the Employees Retirement System Board. Adopted by the following roll call vote: 5-2. Yeas: Antekeier, Dedic, Murphy, Piloske, Wood Nays: Korkoske, Kraus There was not a quorum for the Police and Fire Retirement Board. Trustee Wood requested that the proposed ordinance change be placed on the Police and Fire Board agenda for its next meeting. Mr. John Jackson of Asset Consulting Group presented a quarterly review of investment performance results for the Employees Retirement System and The Police and Fire Retirement Systems. Mr. Jackson discussed Delaware fund investments and a change from its commingled pool. Mr. Jackson also reported to the Board requested information on funds invested in the Sudan. Karen Williams distributed the 2008 Police and Fire and Employees Retirement System Meeting Schedule. There was no quorum to approve the schedules. The Meeting adjourned at 11:37 a.m. f� C Minutes approved on Jer Am rose, Secretary Robert Antekeier, Chairperson Bruce Holliday, Chairperson Employees Retirement System Fire and Police Retirement System r OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM (REVISED) Regular Meeting November 20, 2007 Council Conference Room Tuesday, 8:38 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:30 a.m. Present: Trustees Holliday, Kraus, Lewis, Oleson, St. Aubin, Wood — 6. Absent: Trustee Bernero. J Others: Karen E. Williams, Jerry Ambrose, Finance Department; Blair Renfrew, Clark Hill Law Office. It was moved by Trustee Wood and Trustee Oleson to approve the Official Minutes of the Police and Fire Meeting of October 23, 2007. Adopted by the following vote: 6-0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 1 refund(s), 0 transfers, 1 retired. Total: Active membership: 480. 0 death(s). Refunds made since the last regular meeting amounted to $ 19,654.14. Retirement allowances paid for the month of October, 2007 amounted to $1 ,763,761.46. Total retirement checks printed for the P&F System: 628. Total retirement checks printed for both systems: 1408. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. Trustee Kraus gave a disability subcommittee report regarding Mr. Robert Vargas. The subcommittee recommended that Mr. Vargas be referred to the Board's medical doctor for evaluation. It was moved by Trustee Kraus and supported by Trustee St. Aubin to refer Mr. Robert Vargas to the Board's medical doctor for evaluation. Adopted by the following vote: 6 — 0. Regular Meeting November 20, 2007 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two The Retirement Analyst presented the completed Medical Release form returned by Mr. Frank Holmes. The Board discussed concern that Mr. Holmes had altered the form with a qualifier. The medical release form was found to not be acceptable as altered. It was moved by Trustee Wood and supported by Trustee Kraus that the Retirement Analyst sends another form with instructions that the form be completed, but not altered or qualified in anyway. Adopted by the following vote: 6 — 0. Trustee Wood reported to the Board that a new Trustee had been appointed to the Police and Fire Board as the citizen appointee. Trustee Benson was asked to contact the retirement analyst and chairperson. It was moved by Trustee Wood and supported by Trustee Kraus to excuse Trustee Benson from the meeting. Adopted by the following vote: 6 — 0. Trustee Holliday reported to the Board regarding the International Foundation of Education Benefits and Compensation Conference in Anaheim. Trustee Kraus also added that she forwarded a collection of resource material to the Retirement Office on various topics presented at the Conference. Additionally, she reported about new technologies and software packages that could assist and enhance the retirement office. All trustees that attended founded the conference informative. Trustee Oleson apologized to the Board regarding not following the proper procedure for addressing outside counsel. Trustee Holliday met with Jack Roberts and items A & B will be tabled. Mr. Jerry Ambrose discussed the proposed ordinance to designate another individual to act on the Mayor's behalf of the Police and Fire Retirement System Board. The Board discussed the Mayor's proposal to have the option to designate a person to attend meetings and vote on his behalf. Trustee Kraus expressed concern that there has not always been active participation from previous administrations and this option may be beneficial to the Board. It was moved by Trustee Lewis and supported by Trustee Oleson that the Police and Fire Board not support the proposed ordinance change to designate another individual to act on the Mayor's behalf on the Police and Fire Retirement System Board. Adopted by the following vote: 5 — 1. November 20, 2007 Regular Meeting Tuesday, 8:30 a.m. Council Conference Room Page Three loth Floor, City Hall Lansing, MI d the 2008 Calendar for Meeting Dates for the Police and Fire Karen Williams distri bute Retirement System. it was moved by Trustee Wood and supported by Trustee Lewis to approve the 2008 Meeting Schedule with adjustments to September meeting date. Adopted by the following vote: 6 — 0. 'buted the posting for the Police Trustee st elelectction it review. Ms. Karen Williams d►str► process that was used for the la Williams reviewed the election p the posting for it was moved by Trustee Wood and supported by Trustee Lewis to approve the Police Trustee Election. Adopted by the following vote: 6 — 0. ike to Trustee Wood reported to the Board that the Joint Ad Hoc Health Committee nc Trustele IWood have a health care summit closer to et ement off-ice irement Bwill obtaienefit n conference material here om also reported to the Board that the R International Conference. Trustees who attended the conference reported the Intern resented. were various health topics p ' ted and reviewed the October Securities Lending Account Report. Karen Williams distributed system or the Karen Williams reporte d to the Board that Northern Trust has a web-based the dNorth of Trust chair to access the Police and Fire Board accountsto attend a future meeting to present the web-based r will be available permission to have web relationship manageThe Board system. Mr. Tom Korkoske and Mr. Mk►S Colby fo r the uannualpreporting. r Colby. y information that access for accounting approved access to web-based accounting information for Mr. Korkoske an ate guidelines for meat Trustee Lewis requested a review of the Odat d aOf tngu ge orlan amendment to the Tr ested p reimbursements. Trustee Wood suggested policy The meeting adjourned at 9:52 a.m. Minutes approved on r ry Amb ose J� , Secretary /Police & ire Retirement System Bruc Holliday,r v Police & Fire Reirlement System