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HomeMy WebLinkAbout2014 Police and Fire Retirement System FINAL PUBLIC MEETING NOTICE Following is the schedule of meeting dates for calendar year 2014 for both Retirement System Boards: POLICE AND FIRE RETIREMENT SYSTEM (approved) January 21, 2014 February 18, 2014 (JOINT) March 18, 2014 April 15, 2014 May 13, 2014 June 17, 2014 July 15, 2014 August 19, 2014 (JOINT) September 23, 2014 October 21, 2014 November 18, 2014 December 16, 2014 EMPLOYEES' RETIREMENT SYSTEM January 23, 2014 February 20, 2014 March 20, 2014 April 17, 2014 May 15, 2014 (JOINT) June 19, 2014 July 17, 2014 August 21, 2014 September 25, 2014 October 23, 2014 November 20 2014 (JOINT) December 18, 2014 These meetinZs are reaularl y held in the City Council Conference Room on the loth Floor of City Hall at 8:30 a.m. Note: 'Where listed, (Joint) Meeting immediately follows regularly held meetings. OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting January 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:36 a.m. Present: Trustees Hecksel, Kraus, Oleson, St. Aubin, Wood— 5. Absent: Trustee Benson, Bernero, Fabus Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of December 17, 2013. t Adopted by the following vote: 5 — 0 a nn. There were no public comments. -- . Secretary's Report. C- 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 iT N transfers, 2 retired. Total: Active membership: 333. 1 death(s), Betty Sue Ps; Cochran, died December 11, 2013, age 80, spouse of Police retiree; Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of December 2013 amounted to $2,216,990.55. Total retirement checks printed for the P&F System: 693. Total retirement checks printed for both systems: 1580. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no applications for regular age and service retirements. Karen Williams reported that applicant #2013-F1217 had submitted the documentation requested by the disability subcommittee. The information would be forwarded to the medical director so that the applicant could be scheduled for evaluation. Regular Meeting January 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall page Two Lansing, MI Karen Williams reported that Applicant #2013-P1015 has been evaluated by the doctor and the disability subcommittee is waiting for the medical report. Karen Williams reported that Applicant #2013-P0917 has been evaluated by the doctor and the disability subcommittee is waiting for the medical report. There were no requests for Non Duty Disability Retirement. Karen Williams reported that Mr. Jerry Blow, Jr., Police has requested a refund of his accumulated contributions of $77,041.45. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the request for refund of accumulated contribution for Mr. Jerry Blow, Jr, Police of $77,041.45. Adopted by the following vote: 5 — 0. It was moved by Trustee Hecksel and supported by Trustee Kraus to excuse Trustee Benson and Trustee Fabus from the January Police and Fire Retirement System meeting. Adopted by the following vote: 5 — 0. Karen Williams provided an update of the Arrivos Pension Software implementation. Tegrit is working on a new schedule for the software implementation. Tegrit will provide the new schedule to the project sponsors. Karen Williams continued the manual data upload of information and worked with Tegrit to set up rules for the active and retiree files in Arrivos. Ms. Williams stated that Tegrit has the Retirement Ordinance and other documentation. Trustee Wood inquired if the delays in the ERS Retirement Ordinance could slow down the progress of the implementation. Attorney Ken Lane opined that contract changes could potentially affect the progress of the implementation. Karen Williams stated that she is working with Tegrit to make the software as flexible as possible to incorporate contract changes. Attorney Ken Lane reviewed the draft funding policy that was distributed by Mr. Greg Stump, actuary, Boomershine Consulting Group at the January meeting. Regular Meeting January 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Lane discussed the recommendation that if the plan becomes 100% funded; the policy would have guidelines for the City to contribute a minimum amount. Attorney Lane stated that he believed the state law would not allow a mandate from the retirement system to contribute a minimum amount. The state law provides what is required for the City contribution. Attorney Ken Lane reviewed an amendment written into the PBI contract. Attorney Lane had concerns with some of the provisions of the contract. Attorney Lane brought to the Board's attention that the amendment would absolve the PBI company of all responsibility for the data that is supplied to the City of Lansing Retirement System. Attorney Lane recommended that the amendment be removed. Attorney Ken Lane discussed the Public Act 314 provisions for required annual reports. The Police and Fire Retirement Board's annual policy provides for the Actuary Report and the Asset Consulting Group report satisfies the requirements. Attorney Lane also discussed that a projected budget showing expenditures for the year was required. Attorney Lane would provide a budget for the Police and Fire Retirement Board. The statute also requires financial report looks back 7 and 10 years and provide it in the annual reporting. The report would need to be approved at a public meeting than sent to the Mayor and Council. It was moved by Trustee Wood and supported by Trustee Hecksel to elect Brad St. Aubin as chairperson and Robert Oleson as vice chairperson, and to close nomination. Adopted by the following vote: 5 —0. The Police and Fire Retirement Board approved the following committees: POLICE & FIRE RETIREMENT SYSTEM 2014 SUB-COMMITTEE MEMBERS DISABILITY COMMITTEE - Fabus, Hecksel, Kraus, St. Aubin INVESTMENT COMMITTEE - Benson, Hecksel, Kraus, Oleson, Wood EDUCATION COMMITTEE - Fabus, Oleson, St. Aubin, Wood SPECIAL PROJECTS Kraus, Oleson, St. Aubin, Wood Ex-officio legal counsel JOINT AD HOC COMMITTEE ON HEALTH CARE - Benson, Oleson, Wood Regular Meeting January 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Ms. Angela Bennett reported that she contacted Mr. Greg Stump, actuary, Boomershine Consulting Group with recommendations for the final report. Ms. Bennett requested changes to the cover of the report to list the name of the plan. Ms. Bennett requested amendments to the executive summary and changing the report date to December 31 as in previous reports. Ms. Bennett asked for the Board direction regarding including additional graphs. The Police and Fire Retirement Board approved the request for additional graphs. Trustee St. Aubin informed the Police and Fire Board that he would contact the actuary regarding the amendments and he would request that an updated draft be provided before the February meeting. Ms. Bennett stated that she would provide the recommendations to the actuary and provide a copy to the chairperson. Karen Williams reviewed the Monthly Investment and Security Lending Reports. It was moved by Trustee Hecksel and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9:16 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE AND FIRE RETIREMENT SYSTEM AND EMPLOYEES RETIREMENT SYSTEM AGENDA Joint Meeting February 18, 2014 City Council Conference Room Tuesday, 9:15 a.m. 10th Floor City Hall Lansing, MI 1 . Call to Order. ERS: Bernero, Boles, Dedic, Kraus, Munroe, McCaffery, D. Parker, M. Parker, Taylor P&F: Bernero, Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood 2. Boomershine Consulting Group — Greg Stump 2012 Actuarial wrap up Preview for 2013 valuation. GAS B Updates 3. Asset Consulting Group — George Tarlas a. Cash Flow Withdrawal Requests b. Quarterly Performance Reports — 4rd Quarter 2013 4. Public Comments 5. Other Business 6. Adjourn F1 r CD t� r'l Cn �w CITY OF LANSING ,JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM MEETING MINUTES Joint Meeting February 18, 2014 Council Conference Room Tuesday, 9:15 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:28 a.m. A quorum of the Employees Retirement Board was present. Trustees present: (Police & Fire), Benson, Hecksel, Kraus, Wood —4. (ERS), Dedic, Kraus, Munroe, McCaffery, D. Parker, M. Parker, Taylor—7. Others present: Angela Bennett, Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Greg Stump, Boomershine Consulting Group.; Andrew Gillentine, George Tarlas, Asset Consulting Group. -� Mr. Greg Stump reviewed the revised 2012 actuarial valuation report, that clu_a-ed ;�? changing the valuation date to December 31, 2012, the accounting informafiion 4d � GASB schedules were updated. FT- -` It was moved by Trustee Kraus and supported by Trustee Mark Parker to a`(zPep he CD i 2012 actuarial valuation report for the Employees Retirement System. co Adopted by the following vote: 7 — 0. Mr. Stump discussed the preparation for the 2013 valuation. Mr. Stump provided a recommendation to amend the investment return assumption to 7.5%. The assumption changes would increase the City's contribution. Mr. Stump discussed a reset the asset smoothing of the investment return. Mr. Stump reviewed his recommendation for the Retirement Boards to adopt a funding policy. Trustee Hecksel expressed concern that the reset of the asset smoothing would increase the risk to the employer contribution amount. Ms. Bennett also expressed concern regarding the volatility of the contribution amount with the reset of asset smoothing. The asset smoothing reset would only help in the first year. Mr. Stump discussed upcoming GASB changes, 67 and 68, and he reviewed the funding policy and the return assumption. Mr. Stump reviewed the funding levels outlook. Mr. Stump recommended completing the funding policy by the end of the year George Tarlas reviewed the cash flow withdrawal requests for the Police and Fire Retirement System Board and the Employees Retirement System Board. It was moved by Trustee Kraus and supported by Trustee Mark Parker to redeem $1.8 million from the Northern Trust portfolio, 4 million from the T. Rowe Price portfolio, and $50,000 from Northern Trust securities lending for the quarterly cash flow withdrawal. Adopted by the following vote: 7 - 0 Mr. Andrew Gillentine, of Asset Consulting Group reviewed the Quarterly Performance reports for the 4`h quarter of 2013. Mr. Gillentine also discussed the year-end financial performance of the Employees' Retirement System and the Police and Fire Retirement System. Mr. Andrew Gillentine reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. There were no public comments. The Meeting adjourned at 11:15 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:42 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus, St. Aubin, Wood—6. Absent: Trustee Bernero, Oleson Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Greg Stump, Boomershine Consulting Group It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of January 21, 2014. Adopted by the following vote: 6 — 0 There were no public comments. ' N Secretary's Report. Co -, 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), r- 0 transfers, 1 retired. Total: Active membership: 332. 0 death(s). Refunds made since the last regular meeting amounted to $77,041.45. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of January 2014 amounted to $2,325,484.47. Total retirement checks printed for the P&F System: 696. Total retirement checks printed for both systems: 1588. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the following application for regular age and service retirement: Cynthia A. Flisnik, Fire Department, 22 years, 6 months of service credit,age 55, effective February18, 2014. Adopted by the following vote: 6 - 0 Regular Meeting February 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported that applicant #2013-F1217 had submitted the documentation requested by the disability subcommittee. The information would be forwarded to the medical director so that the applicant could be scheduled for evaluation. Trustee Fabus reported that the disability subcommittee had met and reviewed the medical reports for Applicant #2013-P1015 and Applicant #2013 — P0917. The disability subcommittee recommended that the Police and Fire Retirement System concur with the doctor's report and approve the applicants' requests for duty disability. It was moved by Trustee Fabus and supported by Trustee Hecksel to concur with the medical director's report and approve the requests for duty disability of Applicant #2013 — P1015 and Applicant#2013-P0917. Adopted by the following vote: 6—0. There were no requests for Non Duty Disability Retirement. There were no requests for Refunds of Accumulated Contributions. Trustee St. Aubin reported that he was contacted by Trustee Oleson who requested to be excused from the Board meeting, due to an out-of-town obligation. It was moved by Trustee Hecksel and supported by Trustee Kraus to excuse Trustee Oleson from the February Police and Fire Retirement System meeting. Adopted by the following vote: 6 — 0. Karen Williams provided an update of the Arrivos Pension Software implementation. Tegrit is working on a new schedule for the software implementation. Karen Williams will begin working with Tegrit to create the retirement calculators. Mr. Greg Stump reviewed the revised 2012 actuarial valuation report, that included changing the valuation date to December 31, 2012, the accounting information and GASB schedules were updated. Regular Meeting February 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Hecksel and supported by Trustee Benson to accept the 2012 actuarial valuation report. Adopted by the following: 6 - 0 Trustee Fabus left the meeting. Attorney Ken Lane discussed the Public Act 314 provisions for required annual reports. The Police and Fire Retirement Board's annual policy provide an Actuary Report and the Asset Consulting Group report to satisfy the requirements. Attorney Lane also discussed that a projected budget showing expenditures for the year was required. The statute also requires financial report looks back 7 and 10 years and provide it in the annual reporting. The report would need to be approved at a public meeting then sent to the Mayor and Council. The items need to be posted on the Retirement Board website. Attorney Ken Lane distributed and reviewed the 2014 projected budget to satisfy the requirements of Public Act 314. Trustee Wood requested that the budget have a footnote regarding the average amount of trustee travel expense. The Board also requested that the footnote list the state limits under the legislation. Trustee Benson requested that the budget have totals listed. The Board discussed removing the word "projected." Attorney Ken Lane stated that Public Act 314 requests that the budget be "projected." It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the projected budget with amendments. Adopted by the following vote: 5 — 0 Attorney Ken Lane reviewed the amendment written into the PBI contract. Attorney Lane informed the Board that PBI was unwilling to modify the amendment. PBI stated that the information that provide is generally from credit agencies and the information cannot be guaranteed. Attorney Lane informed the Board that cost of the service would be $750. Attorney Lane was comfortable with language. Attorney Lane stated that when information comes from PBI, the Retirement Board can send a letter to verify if the retiree is deceased. Karen Williams reviewed the Quarterly Expense Report and Security Lending Reports. Trustee Benson requested that the projected budget be incorporated into the Quarterly Expense Report. Trustee Benson wanted a percentage of budget listed on the Quarterly Report. Trustee Kraus stated that the quarterly report will take some time to revise so that items are tracked within the projected budget. Attorney Ken Lane stated that he could make future adjustments to the projected budgets. Attorney Ken Lane inquired about the employer contribution that was made in November. Ms. Angela Bennett stated that with the acceptance of the actuarial valuation, the City will finalize its contribution to the Police and Fire Retirement System. It was moved by Trustee Hecksel and supported by Trustee Benson to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9:19 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM AGENDA Regular Meeting February 18, 2014 City Council Conference Room Tuesday, 8:30 a.m. 10t Floor, City Hall Lansing, Michigan 1. Call to Order. 2. Roll Call - Trustees Benson, Bernero, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood-8. 3. Reading of the Official Minutes of the Police and Fire Retirement System Board Meeting of January 21, 2014. 4. Public Comments for Items on the Agenda. 5. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 332. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $77,041.45. Retirement allowances paid for the month of January 2014 amounted to $2,325,484.47. Total retirement checks printed for the P&F System: 696. Total retirement checks printed for both systems: 1588. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. 6. Application for Regular Age & Service Retirement. Cynthia A. Flisnik, Fire Department, 22 years, 6 months of service credit, age 55, effective February18, 2014. 7. Request for Duty Disability. Applicant#2013 - F1217 Applicant#2013 - P1015 (Pending) Applicant#2013 — P0917 (Pending) 8. Request for Non Duty Disability Retirement. r— 9. Request for Refund of Accumulated Contribution x= -,�10. Excusing of Board Members _;—,J ? _ ry C7 r; o -VI 11. Training and Education — � i Ti Arrivos Pension Software Update r. r r i o 12. Public Comments for items not on the Agenda. =LZ w Regular Meeting February 18, 2014 City Council Conference Room Tuesday, 8:30 a.m. 101h Floor, City Hall Lansing, Michigan 13. Other Business: A. Policy Status/Legislative/Trustee Book Update—Attorney Ken Lane 14. Pending (items): Actuarial Valuation 2012 15. Quarterly Expense Report and Securities Lending Report OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting March 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:33 a.m. ; =�= ^� r-1-} Present: Trustees Fabus, Hecksel, Kraus, Oleson, St. Aubin— 5. Absent: Trustee Bernero, Benson, Wood Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hilld--awn t- Office (representing the Law Department). .._� n� It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of February 18, 2014. Adopted by the following vote: 5 — 0 It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Official Joint Minutes of the Police and Fire Retirement System and the Employees' Retirement System Board Meeting of February 18, 2014. Adopted by the following vote: 5 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 329. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of February 2014 amounted to $2,249,085.32. Total retirement checks printed for the P&F System: 696. Total retirement checks printed for both systems: 1587. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting March 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Fabus and supported by Trustee Kraus to approve the following application for regular age and service retirement: Noel Garcia, Jr., Police Department, 25 years of service credit, age 47, effective March 4, 2014. (with the purchase of 5 months of service credits Adopted by the following vote: 5 - 0 Karen Williams reported that applicant #2013-F1217 had submitted the documentation requested by the disability subcommittee. The information was forwarded to the medical director for scheduling. There were no requests for Non Duty Disability Retirement. There were no requests for Refunds of Accumulated Contributions. Trustee St. Aubin reported that Trustee Benson and Trustee Wood requested to be excused from the Board meeting. It was moved by Trustee Hecksel and supported by Trustee Fabus to excuse Trustee Oleson from the March Police and Fire Retirement System meeting. Adopted by the following vote: 5 — 0. Karen Williams provided an update of the Arrivos Pension Software implementation. Tegrit has requested approval to implement the hosting agreement upon completion of Phase 2 of the project. Tegrit believes going live will save money and time and provide benefits in implementing the City's death audit and increasing the effectiveness of user testing. The Police and Fire Retirement Board approved the request by Tegrit to implement the hosting agreement. Ms. Williams discussed the MAPERS Spring Conference, scheduled for May 18- 20, 2014. Ms. Williams informed the trustees that the deadline for early registration would be April 18, 2014. Attorney Ken Lane discussed the Unfunded Accrued Liability Plan portion of the Michigan's EVIP program. Attorney Lane described that to receive revenue sharing from the State of Michigan Department, the City will need to certify for the Michigan Department of Treasury by June 1, 2014 that there is an Unfunded Accrued Liability Plan. Regular Meeting March 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three The Unfunded Accrued Liability Plan will include a description of previous actions taken, estimated cost savings, description of how previous actions were implemented and maintained and a listing of additional steps that could be taken. Attorney Ken Lane stressed the importance of having a timely actuarial valuation. Attorney Ken Lane discussed the Police and Fire Retirement Board Travel Policy. Public Act 314 requires that the Board review the policy each year. A motion will need to be passed each year with the budgeted amounts. Trustee Fabus requested legal counsel to find out what other Boards are allocating for per diem. Trustee Fabus stated that at some conference locations the food costs are much higher than the amounts allocated by the City's policy. Attorney Lane can check to see what standards are available. Karen Williams reported that Retirement Boards at its joint meeting discussed a due diligence trip to Asset Consulting Group, May 7-9. The Police and Fire Board suggested May 5- 7. Ms. Williams will report this information at the Employees Retirement Board to finalize dates. Karen Williams reported that a memo from Ms. Angela Bennett was received for the Police and Fire Retirement System. The memo detailed the FY 2014 Police and Fire Pension Contribution stating: On March 5, 2014, $248,857 was transferred by the City to the Police and Fire Retirement System for the balance of the FY 2014 contribution. That amount, combined with the $11,000,000 amount contributed November 1, equals the FY 2014 actuarial valuation-calculated contribution amount of$11,248,857. It was moved by Trustee Hecksel and supported by Trustee Kraus to recognize the FY 2104 Police &Fire Pension Contribution balance. Adopted by the following vote: 5 — 0. Trustee Kraus discussed amendments to the quarterly expenses report that would include a year—to-date total. Karen Williams requested that members review the report and provide suggestions and changes to Trustee Kraus. Karen Williams reviewed the Monthly Investment Report and Security Lending Reports. Karen Williams reviewed the Asset Consulting Group memo with recommendations for the quarterly cash flow withdrawals. Asset Consulting Group recommended the Board redeem $3,000,000 from the Northern Trust S& P 500 Index portfolio and redeem $3,700,000 from the TRowe Price portfolio. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the Asset Consulting Group recommendation to withdraw $3,000,000 from the Northern Trust S & P 500 Index portfolio, withdraw $3,700,000 from the TRowe Price portfolio for quarterly cash flow expense, and withdraw $50,000 from Northern Trust Security Lending for administrative expenses. Adopted by the following vote: 5 - 0 Karen Williams informed the Retirement Board that the authorized signers list had not been updated in a few years. This list is often requested by investment manager. Ms. Williams inquired if the Board would like to make any changes to the list. Attorney Ken Lane reported that the Employees' Retirement System Board recently hired a new investment manager that requested an authorized signer list. Attorney Lane thought it would be a good idea to update both retirement systems list of authorized signers. It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9:07 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD-,OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM, Regular Meeting April 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:35 a.m. Present: Trustees Benson, Hecksel, Kraus, Oleson, St. Aubin, Wood— 6. Absent: Trustee Bernero, Fabus Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of March 18, 2014. Adopted by the following vote: 6 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 328. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of March 2014 amounted to $2,264,253.90. Total retirement checks printed for the P&F System: 699. Total retirement checks printed for both systems: 1591. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no applications for regular age and service retirement. Karen Williams reported that applicant #2013-F1217 had submitted the documentation requested by the disability subcommittee. The applicant has been scheduled for to see the medical director. There were no requests for Non-Duty Disability Retirement. There were no requests for Refunds of Accumulated Contributions. Regular Meeting April 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Trustee St. Aubin reported that Trustee Fabus requested to be excused from the April Board meeting. It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse Trustee Fabus from the April Police and Fire Retirement System meeting. Adopted by the following vote: 6 — 0. Karen Williams provided an update of the Arrivos Pension Software implementation. Tegrit will suspend work on the project for approximately 11 weeks due to resource constraints. Tegrit will set up User Testing in June, when the data goes live. Tegrit will provide an updated timeline and resume work on calculators in July. Ms. Williams reported that she has reviewed the PBI death check site. Ms. Williams discussed the MAPERS Spring Conference, scheduled for May 18- 20, 2014. Ms. Williams informed the trustees that the deadline for early registration would be April 18, 2014. Karen Williams reviewed the travel policy and how to complete the expense report that is required for reimbursement. The Board reviewed the mileage rate and per diem amounts for meals. Attorney Lane reviewed the provision in Public Act 314 to review the travel policy amounts on a yearly basis. Attorney Lane stated that law allows $12,000 per year. The Police and Fire Retirement System current limits are $6,000 for out-of-state travel and $4,000 for in- state travel per trustee. It was moved by Trustee Hecksel and supported by Trustee Benson to maintain the current trustee travel amounts for the fiscal year. Adopted by the following vote: 6 - 0 Attorney Lane updated the Police and Fire Retirement Board regarding the death check vendor, PBI. The company is required under a new federal law to verify the use of the social security administration data supplied by the company. Under the new law, clients can only use the PBI data to comply with legislation or for fraud prevention or fiduciary responsibility. PBI requires a policy regarding how the data is handled. Attorney Ken Lane opined that the Board's legal documents policy should be sufficient until he was able to draft a new policy. Trustee St. Aubin suggested that the Legal Documents policy be amended to include the provisions from PBI, for how the data is handled. Trustee St. Aubin indicated that the secretary report provides notification to the Board regarding deceased retirees. Regular Meeting April 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Wood expressed concern regarding the retention of documents and electronic data. Attorney Lane indicated that the Police and Fire Retirement Board have a record retention policy. Trustee Kraus suggested that the retirement office contact the Information Technology department to provide secure folder on the server. The retirement office could save the electronic data in the folder that would only be accessible with a password. Attorney Lane reported that the City of Lansing made the remainder of the employer contribution last month. However, the memo listed that the contributions were for fiscal year 2013. Attorney Lane opined that the Police and Fire Retirement System are on a calendar year; therefore the contributions should be listed for calendar year 2012. Attorney Lane requested a motion be made to clarify the information in the memo. It was moved by Trustee Kraus and supported by Trustee Wood to accept the employer contributions that were made by the City of Lansing last month was for the calendar year 2012. Adopted by the following vote: 6 - 0 Attorney Ken Lane reviewed a derivative case recommended by the Robbins, Geller, Rudman & Dowd portfolio monitoring program. Robbins, Geller suggested that the Police and Fire System consider seeking lead plaintiff status. Attorney Lane reported that the Robbins, Geller Firm attained local counsel that was not on the approved City Counsel list. The amount listed in the derivative case was below the threshold set in the Securities Monitoring policy by the Police and Fire Retirement Board. The Police and Fire Retirement Board reviewed the recommendation and discussed the pros and cons of being the lead plaintiff in a corporate governance case. It was moved by Trustee Hecksel and supported by Trustee Kraus to decline Robbins, Geller, Rudman & Dowd's memo recommendation to become lead plaintiff in the derivative case. Adopted by the following vote: 6 - 0 Regular Meeting April 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams reviewed possible dates for the due diligence trip to Asset Consulting Group in June. The Police and Fire Board suggested June 9 -11. Ms. Williams will report this information at the Employees Retirement Board to finalize dates. Karen Williams reviewed the Asset Consulting Group suggested investment managers meeting schedule for the Police and Fire Retirement Board and the Employees' Retirement System Board at joint meetings for the year: Western Asset, May; MD Sass, August; UBS Trumbull Property Fund, November. The Retirement Office received a request, from Munder Capital that handles the integrity investment, to publish the Police and Fire Retirement System as its client. Attorney Lane informed the members that under the contract provisions, Munder Capital had to receive permission from the Board before the Police and Fire Retirement System can be listed as a client. The Board agreed to allow Munder Capital to publish the Police and Fire Retirement System as its client. Trustee St. Aubin informed the Board of a memo to the Information Technology department to confirm its approval for new computer equipment for the retirement office. Trustee Wood distributed a report from the internal auditor for the Board's review. Trustee Wood explained that every year the internal auditor does an analysis of the financial position of the City. Trustee Wood had information included regarding comparison of the MERS system and the City of Lansing investment returns. Trustee Wood also informed the Board that City Council participated in training by the Chamber of Commerce and Michigan State University regarding budgeting and financial stability. One session included recommendations for investment returns at suggested a rate of 2-3% rather than industry standards of 7-8%. Trustee Wood expressed concern that the Council was not receiving a complete analysis of the retirement system. Trustee Wood suggested having the Board's Actuary and the Board's Investment consultant present a small seminar to provide education for City Council. The Police and Fire Retirement Board discussed inviting council members to a joint meeting or during the City Council Committee of the Whole meeting when Asset Consulting Group and Boomershine Consulting Group are in attendance. Karen Williams reviewed the Monthly Investment Report and Security Lending Reports. It was moved by Trustee Hecksel and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:38 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting May 13, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:35 a.m. Present: Trustees Fabus, Hecksel, Kraus, Oleson, Wood— 5. Absent: Trustee Bernero, Benson, St. Aubin M � o � Trustee Oleson presided over the meeting. oV Cn Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of April 15, 2014. Adopted by the following vote: 5 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 7 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 335. 2 death(s). Patricia Daiss, died, March 18, 2014, age 85, spouse of Fire Retiree; Charles H. Reeves, Fire, died April 26, 2014, age 62, beneficiary to receive 50. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of April 2014 amounted to $2,259,267.84. Total retirement checks printed for the P&F System: 698. Total retirement checks printed for both systems: 1588. Domestic relations order received: 1 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Fabus and supported by Trustee Wood to approve the following application for Regular Age and Service Retirement: James Thornburg, Police Department, 17 years, 7 months of service credits, age 56, effective May 5, 2014. Adopted by the following vote: 5 -0. Regular Meeting May 13, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Trustee Hecksel requested that the trustees go in to closed session to review a confidential City Attorney's opinion regarding a member's retirement. It was moved by Trustee Kraus and supported by Trustee Hecksel to review a confidential City Attorney's opinion regarding the retirement request of Mr. Ward Meldrum's. Roll Call vote: Yes: Fabus, Hecksel, Kraus, Oleson, Wood -5 No: 0 The session was closed at 8:39 a.m. The session resumed at 8:48 am It was moved by Trustee Hecksel and supported by Trustee Wood to approve the following application based upon the circumstances of Mr. Meldrum's serious illness: Ward Meldrum, Fire Department, 23 years, 8 months of service credits, age 48, effective May 13, 2014 (and the purchase of 1 year and 4 months of universal service credits) to total 25 years of service credits. Adopted by the following vote: 5-0 Karen Williams reported that medical reports for Applicant #2013-F1217 and medical re-exam for Amy Riedel has been received. It was moved by Trustee Kraus and supported by Trustee Hecksel to recess the Police and Fire Retirement System meeting to allow the disability subcommittee to meet. Adopted by the following vote: 5 - 0 The Board recessed at 8:49 a.m. The Board resumed at 8:55 a.m Trustee Kraus reported that the disability subcommittee met and reviewed the medical reports of Applicant #2013-F1217, and the reevaluation of Amy Riedel. Regular Meeting May 13, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Kraus and supported by Trustee Hecksel to concur with the medical director report and not approve the request for duty disability of Applicant #2013-F1217. Adopted by the following vote: 5 — 0. It was moved by Trustee Kraus and supported by Trustee Hecksel to concur with the medical report of Amy Riedel and continue her duty disability. Adopted by the following vote: 5 — 0. Trustee Hecksel reported that the disability subcommittee met and reviewed the request for non-duty disability of applicant #2014-F0513. It was moved by Trustee Hecksel and supported by Trustee Fabus to follow the duty disability application process and send applicant #2014-F0513 to the medical director. Adopted by the following vote: 5 — 0.. There were no requests for Refunds of Accumulated Contributions. It was moved by Trustee Fabus and supported by Trustee Hecksel to excuse Trustee Benson and Trustee St. Aubin from the May Police and Fire Retirement System meeting. Adopted by the following vote: 5 — 0. Karen Williams provided an update of the Arrivos Pension Software implementation. Tegrit plans to set up User Testing of the system. Tegrit has provided an updated timeline and resume work on calculators in July. Ms. Williams discussed the MAPERS Spring Conference, to be held May 18-20, 2014. Ms. Williams informed the trustees that registration and lodging had been scheduled. Attorney Ken Lane distributed and reviewed the death audit information review policy. Attorney Lane also discussed the update to Records Retention and Disposal Policy, adding the death audit information. Regular Meeting May 13, 2014 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 Kraus to approve the Death Audit Information Review Process. Ms. Bennett suggested amending the policy to change the word from "Death audit information received electronically shall be deleted..." to "Death audit information received electronically shall be moved ..." Adopted by the following vote: 5 — 0. It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the updated Record Retention Process. Adopted by the following vote: 5 - 0 Karen Williams reported that 6 fire retirees, 4 police retirees did not send in completed certification forms by April 30. The income verification policy requires a second notice be mailed to those who have not reported prior to suspension of their pension. Mr. Williams reported that a retiree had earnings and disability retirement exceeded the current rate of compensation for position last held by the retiree. The Police and Fire Retirement Board discussed the duty disability retirees who had not reported their income and who had outside earning above their current rate of compensation. It was moved by Trustee Kraus and supported by Trustee Wood to immediately adjust the disability retirement for Mr. Daniel Hamel, whose earning and disability retirement exceeded the current rate of compensation for the position he last held before he retired. Adopted by the following vote: 5 - 0. Trustee Wood asked Ms. Williams to review how approved minutes are filed with the City Clerk's Office. Ms. Williams reported that initially draft minutes are sent to the City Clerk's office until they are approved at the following month's Board minutes. The Retirement Office then sends an approved set of minutes to the City Clerk's Office for filing. Ms. Williams reported that Munder Capital/Integrity investment fund had been acquired by Victory Capital. Ms. Williams contacted Asset Consulting Group for a written recommendation to the Board prior to the representative client authorization form is completed and forwarded to Integrity. Karen Williams reviewed the Quarterly Expense Report and Securities Lending Reports. It was moved by Trustee Hecksel and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9:21 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting May 13, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI ira F3 The Board was called to order at 8:35 a.m. ) © M. =7, Present: Trustees Fabus, Hecksel, Kraus, Oleson, Wood- 5. -< m Absent: Trustee Bernero, Benson, St. Aubin rm Trustee Oleson presided over the meeting. Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of April 15, 2014. Adopted by the following vote: 5 - 0 There were no public comments. Secretary's Report. 0 new fire member(s), 7 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 335. 2 death(s). Patricia Daiss, died, March 18, 2014, age 85, spouse of Fire Retiree; Charles H. Reeves, Fire, died April 26, 2014, age 62, beneficiary to receive 50. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of April 2014 amounted to $2,259,267.84. Total retirement checks printed for the P&F System: 698. Total retirement checks printed for both systems: 1588. Domestic relations order received: 1 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting May 13, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Trustee Hecksel requested that the trustees go in to closed session to review a confidential City Attorney's opinion regarding a member's retirement. It was moved by Trustee Kraus and supported by Trustee Hecksel to review a confidential City Attorney's opinion regarding the retirement request of Mr. Ward Meldrum's. Roll Call vote: Yes: Fabus, Hecksel, Kraus, Oleson, Wood -5 No: 0 The session was closed at 8:39 a.m. The session resumed at 8:48 am It was moved by Trustee Hecksel and supported by Trustee Wood to approve the following application based upon the circumstances of Mr. Meldrum's serious illness: Ward Meldrum, Fire Department, 23 years, 8 months of service credits, age 48, effective May 13, 2014 (and the purchase of 1 year and 4 months of universal service credits) to total 25 years of service credits. Adopted by the following vote: 5-0 Karen Williams reported that medical reports for Applicant #2013-171217 and medical re-exam for Amy Riedel has been received. It was moved by Trustee Kraus and supported by Trustee Hecksel to recess the Police and Fire Retirement System meeting to allow the disability subcommittee to meet. Adopted by the following vote: 5 - 0 The Board recessed at 8:49 a.m. The Board resumed at 8:55 a.m Trustee Kraus reported that the disability subcommittee met and reviewed the medical reports of Applicant#2013-F1217, and the reevaluation of Amy Riedel. Regular Meeting May 13, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Kraus and supported by Trustee Hecksel to concur with the medical director report and not approve the request for duty disability of Applicant #2013-F1217. Adopted by the following vote: 5 — 0. It was moved by Trustee Kraus and supported by Trustee Hecksel to concur with the medical report of Amy Riedel and continue her duty disability. Adopted by the following vote: 5 — 0. Trustee Hecksel reported that the disability subcommittee met and reviewed the request for non-duty disability of applicant #2014-F0513. It was moved by Trustee Hecksel and supported by Trustee Fabus to follow the duty disability application process and send applicant #2014-F0513 to the medical director. Adopted by the following vote: 5 — 0.. There were no requests for Refunds of Accumulated Contributions. It was moved by Trustee Fabus and supported by Trustee Hecksel to excuse Trustee Benson and Trustee St. Aubin from the May Police and Fire Retirement System meeting. Adopted by the following vote: 5 — 0. Karen Williams provided an update of the Arrivos Pension Software implementation. Tegrit plans to set up User Testing of the system. Tegrit has provided an updated timeline and resume work on calculators in July. Ms. Williams discussed the MAPERS Spring Conference, to be held May 18-20, 2014. Ms. Williams informed the trustees that registration and lodging had been scheduled. Attorney Ken Lane distributed and reviewed the death audit information review policy. Attorney Lane also discussed the update to Records Retention and Disposal Policy, adding the death audit information. Regular Meeting May 13, 2014 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 Kraus to approve the Death Audit Information Review Process. Ms. Bennett suggested amending the policy to change the word from "Death audit information received electronically shall be deleted..." to "Death audit information received electronically shall be moved ..." Adopted by the following vote: 5 — 0. It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the updated Record Retention Process. Adopted by the following vote: 5 - 0 Karen Williams reported that 6 fire retirees, 4 police retirees did not send in completed certification forms by April 30. The income verification policy requires a second notice be mailed to those who have not reported prior to suspension of their pension. Mr. Williams reported that a retiree had earnings and disability retirement exceeded the current rate of compensation for position last held by the retiree. The Police and Fire Retirement Board discussed the duty disability retirees who had not reported their income and who had outside earning above their current rate of compensation. It was moved by Trustee Kraus and supported by Trustee Wood to immediately adjust the disability retirement for Mr. Daniel Hamel, whose earning and disability retirement exceeded the current rate of compensation for the position he last held before he retired. Adopted by the following vote: 5 - 0. Trustee Wood asked Ms. Williams to review how approved minutes are filed with the City Clerk's Office. Ms. Williams reported that initially draft minutes are sent to the City Clerk's office until they are approved at the following month's Board minutes. The Retirement Office then sends an approved set of minutes to the City Clerk's Office for filing. Ms. Williams reported that Munder Capital/Integrity investment fund had been acquired by Victory Capital. Ms. Williams contacted Asset Consulting Group for a written recommendation to the Board prior to the representative client authorization form is completed and forwarded to Integrity. Karen Williams reviewed the Quarterly Expense Report and Securities Lending Reports. It was moved by Trustee Hecksel and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9:21 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM MEETING MINUTES Joint Meeting May 15, 2014 Council Conference Room Thursday, 9:15 a5_;. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:21 a.m. C"% Cf� A quorum of the Employees Retirement Board was present. r.,.ti c'+ Trustees present: (Police & Fire), Fabus, Hecksel, Oleson, Wood —4. (ERS), Dedic, Munroe, McCaffery, D. Parker, M. .Parker, Taylor—6. Others present: Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Ronnie Amici, Travis Carr, Western Asset Management; Haley Rives, Asset Consulting Group. Ms. Haley Rives, Asset Consulting Group, provided an overview of the Western Asset Management Company for the joint retirement boards. Ms. Ronnie Amici, Public Funds Client Service, provided an organizational update, discussed the investment philosophy and the investment objectives at Western Asset Management Company. Mr. Travis Carr, Product Specialist provided a review of the Employees Retirement System and the Police and Fire Retirement System portfolios investment results. Mr. Carr also provided a market review and portfolio review. Ms. Rives reviewed the Employees Retirement System quarterly cash flow request. Asset Consulting Group recommendation was to redeem $2,750,000 from the MD Sass portfolio and $2,750,000 from the Western Asset portfolio that was currently overweight to fixed income. The Retirement Board discussed transferring $50,000 from the Northern Trust securities lending to Comerica for the Board's administrative expenses. It was moved by Trustee Mark Parker and supported by Trustee Taylor to redeem $5,500,000 for quarterly cash flow needs as outlined by Asset Consulting group, $2,750,00 from MD Sass and $2,750,000 from Western Asset, and to redeem $50,000 from Northern Trust securities lending account for administrative expenses. Adopted by the following vote: 6 -0. Ms. Rives discussed the KCG Commission Recapture program and amendments that were made regarding trades through Merrill Lynch. KCG requested board approval of its amendments. Asset Consulting Group recommended Board agreement. Ms. Rives reported that Munder Capital/Integrity investment fund had been acquired by Victory Capital. Ms. Rives recommended that the retirement boards address the request the assign the investment to Victory Capital at its June meetings. Asset Consulting Group will provide a written recommendation. Ms. Rives discussed the proposed due diligence visit to Asset Consulting Group for June 9-11. Trustees requested that alternative dates be provided in October, to allow more trustees to attend. The proposed dates were October 1-3 and October 8 -10. Ms. Rives explained that Northern Trust Securities Lending Collateral Pool made a cash distribution to both Board's accounts. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 1st quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending March 31, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. There were no public comments. The Meeting adjourned at 10:59 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM MEETING MINUTES Joint Meeting May 15, 2014 E Council Conference Room Thursday, 9:15 a.m P v 10th Floor City Hall ' `rT1 Lansing, MI M m The meeting was called to order at 9:21 a.m. 70 --i :y. A quorum of the Employees Retirement Board was present. Trustees present: (Police & Fire), Fabus, Hecksel, Oleson, Wood —4. (ERS), Dedic, Munroe, McCaffery, D. Parker, M. Parker, Taylor—6. Others present: Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Ronnie Amici, Travis Carr, Western Asset Management; Haley Rives, Asset Consulting Group. Ms. Haley Rives, Asset Consulting Group, provided an overview of the Western Asset Management Company for the joint retirement boards. Ms. Ronnie Amici, Public Funds Client Service, provided an organizational update, discussed the investment philosophy and the investment objectives at Western Asset Management Company. Mr. Travis Carr, Product Specialist provided a review of the Employees Retirement System and the Police and Fire Retirement System portfolios investment results. Mr. Carr also provided a market review and portfolio review. Ms. Rives reviewed the Employees Retirement System quarterly cash flow request. Asset Consulting Group recommendation was to redeem $2,750,000 from the MD Sass portfolio and $2,750,000 from the Western Asset portfolio that was currently overweight to fixed income. The Retirement Board discussed transferring $50,000 from the Northern Trust securities lending to Comerica for the Board's administrative expenses. It was moved by Trustee Mark Parker and supported by Trustee Taylor to redeem $5,500,000 for quarterly cash flow needs as outlined by Asset Consulting group, $2,750,00 from MD Sass and $2,750,000 from Western Asset, and to redeem $50,000 from Northern Trust securities lending account for administrative expenses. Adopted by the following vote: 6 -0. Ms. Rives discussed the KCG Commission Recapture program and amendments that were made regarding trades through Merrill Lynch. KCG requested board approval of its amendments. Asset Consulting Group recommended Board agreement. Ms. Rives reported that Munder Capital/Integrity investment fund had been acquired by Victory Capital. Ms. Rives recommended that the retirement boards address the request the assign the investment to Victory Capital at its June meetings. Asset Consulting Group will provide a written recommendation. Ms. Rives discussed the proposed due diligence visit to Asset Consulting Group for June 9-11. Trustees requested that alternative dates be provided in October, to allow more trustees to attend. The proposed dates were October 1-3 and October 8 -10. Ms. Rives explained that Northern Trust Securities Lending Collateral Pool made a cash distribution to both Board's accounts. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 1st quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending March 31, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. There were no public comments. The Meeting adjourned at 10:59 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM MEETING MINUTES `Y C!3 Cr.. 7-, Joint Meeting May 15, 2014 Council Conference Room Thursday, 9:15 a.m.s- 10th Floor City Hall Lansing, MI The meeting was called to order at 9:21 a.m. A quorum of the Employees Retirement Board was present. Trustees present: (Police & Fire), Fabus, Hecksel, Oleson, Wood -4. (ERS), Dedic, Munroe, McCaffery, D. Parker, M. Parker, Taylor-6. Others present: Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Ronnie Amici, Travis Carr, Western Asset Management; Haley Rives, Asset Consulting Group. Ms. Haley Rives, Asset Consulting Group, provided an overview of the Western Asset Management Company for the joint retirement boards. Ms. Ronnie Amici, Public Funds Client Service, provided an organizational update, discussed the investment philosophy and the investment objectives at Western Asset Management Company. Mr. Travis Carr, Product Specialist provided a review of the Employees Retirement System and the Police and Fire Retirement System portfolios investment results. Mr. Carr also provided a market review and portfolio review. Ms. Rives reviewed the Employees Retirement System quarterly cash flow request. Asset Consulting Group recommendation was to redeem $2,750,000 from the MD Sass portfolio and $2,750,000 from the Western Asset portfolio that was currently overweight to fixed income. The Retirement Board discussed transferring $50,000 from the Northern Trust securities lending to Comerica for the Board's administrative expenses. If was moved by Trustee Mark Parker and supported by Trustee Taylor to redeem $5,500,000 for quarterly cash flow needs as outlined by Asset Consulting group, $2,750,00 from MD Sass and $2,750,000 from Western Asset, and to redeem $50,000 from Northern Trust securities lending account for administrative expenses. Adopted by the following vote: 6 -0. Ms. Rives discussed the KCG Commission Recapture program and amendments that were made regarding trades through Merrill Lynch. KCG requested board approval of its amendments. Asset Consulting Group recommended Board agreement. Ms. Rives reported that Munder Capital/Integrity investment fund had been acquired by Victory Capital. Ms. Rives recommended that the retirement boards address the request the assign the investment to Victory Capital at its June meetings. Asset Consulting Group will provide a written recommendation. Ms. Rives discussed the proposed due diligence visit to Asset Consulting Group for June 9-11. Trustees requested that alternative dates be provided in October, to allow more trustees to attend. The proposed dates were October 1-3 and October 8 -10. Ms. Rives explained that Northern Trust Securities Lending Collateral Pool made a cash distribution to both Board's accounts. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 1st quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending March 31, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. There were no public comments. The Meeting adjourned at 10:59 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting June 17, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:41 a.m. Present: Trustees Fabus, Hecksel, Oleson, St. Aubin, Wood- 5. Absent: Trustee Bernero, Benson, Kraus Others: Karen E. Williams, Finance Department; Mark Parker, Employees' Retirement System Board; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of May 13, 2014. Adopted by the following vote: 5 - 0 r•_ It was moved by Trustee Hecksel and supported by Trustee Wood to approve tle? Official Minutes of the Joint Employees' Retirement System and Police arid, Fire; Retirement System Board Meeting of May 15, 2014. `- Adopted by the following vote: 5 - 0 `T V71 There were no public comments. r� C) 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: 333. 2 death(s). Randall A. Ott, Police, died May 15, 2014, age 70, spouse to receive 50%; Lawrence Cooper, Police, died May 30, 2014, age 83, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of May 2014 amounted to $2,257,092.27. Total retirement checks printed for the P&F System: 698. Total retirement checks printed for both systems: 1590. Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Regular Meeting June 17, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported that she received her first report from PBI for the death audit information. Ms. Williams was notified by electronic mail that new death records had been found. Trustee St. Aubin requested to take items out of order to allow Mark Parker, Employees' Retirement System Board the opportunity to address the request for Dewpoint Extension for Dawn Polihonki. Mr. Mark Parker requested that the Dewpoint Contract for Dawn Polihonki be extended to March 2015 to assist the with Arrivos retirement software implementation. Trustee Wood inquired about separation between the tasks for City and the tasks for the Retirement Board. Trustee Wood stated that Dewpoint has a contract also with the City and wanted to ensure that Ms. Polihonki's time for the Board is not mingled with other duties she has with the City. Also, Trustee Wood also requested that language is added to the contract to prohibit a contract employee from becoming a City employee and having a contract with the Retirement Board. It was moved by Trustee Wood and Trustee Hecksel to approve the extension of the Dewpoint contract to March 2015, contingent upon legal review and that language is added to the agreement that the Ms. Polihonki charge retirement board items only and to void her contract if she were to become a City employee. Adopted by the following vote: 5 — 0 Mark Parker also informed the Police and Fire Retirement Board that Tegrit Group sold two of its Business Units, Retirement Plan Services and Actuarial Business to CBIZ. Mark Parker also informed the Board that there are plans for the Technologies Business Unit that handles the software implementation will be sold also. Trustee St. Aubin stated that Tegrit updated him and Mr. Parker at a recent status meeting and stated that the transition should be seamless. Trustee St. Aubin inquired if there were any upcoming issues. Tegrit informed Trustee St. Aubin that there should be no short term impact. There were no applications for regular age and service retirement. There were no requests for duty disability. Regular Meeting June 17, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams reported that all information for Applicant #2014-F0513 had been forwarded to the medical director for scheduling. There were no requests for Refund of Accumulated Contributions. It was moved by Trustee Wood and supported by Trustee Hecksel to excuse Trustee Kraus from the meeting. Adopted by the following vote: 5 — 0. Mr. Benson contacted the Retirement Board that he would not be able to attend the meeting. It was moved by Trustee Fabus and supported by Trustee Hecksel to excuse Trustee Benson from the Police and Fire Retirement Board June meeting. Adopted by the following vote: 5 — 0 Trustees who attended the MAPERS Spring Conference provided oral reports of the conference. Trustee St. Aubin reported that attended workshops that include trustee development and securities litigation. He was able to network with Asset Consulting Group and Boomershine Consulting Group. Trustee Oleson reported that he attended workshops that included legislative updates, and the opening and closing of plans. He also enjoyed the network. He informed the groups that there were members of MERS in attendance. Trustee Wood indicated that she had information included in the internal audit report regarding a comparison of the MERS system and the City of Lansing investment returns in order for Council to have a complete analysis of the retirement system. Trustee Hecksel attended MAPERS and reported that it was a good networking opportunity. He attended workshops that included information for new trustees and municipal bankruptcy. Attorney Ken Lane reviewed updates to Public Act 314, less stringent EVIP regulations and discussed outcomes of the City of Detroit bankruptcy on the retirement system. City of Detroit trustees will need to have an Investment Committee review and provide recommendations for their investment choices. Attorney Lane distributed the new death audit information policy, and updated record retention policy for the Trustee Books. Regular Meeting June 17, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee St. Aubin inquired if the Trustee Book information can be transferred to electronic form. Trustee St. Aubin suggested maybe providing flash drives with the trustee book for members to keep policies, legislation, ordinance and minutes. Attorney Ken Lane stated that the information can be provided in an electronic form and stated that he would discuss the suggestion with the Employees Retirement System Board. Karen Williams suggested that the electronic form can be placed on the Retirement website when available. Trustee Hecksel suggested providing small tablets or readers to Trustees to keep and access the information. Trustee Wood expressed concern with possible misuse of the tablets in the future, and would be difficult to monitor. Trustee St. Aubin also expressed concern about possible misuse of electronic devices supplied to trustees. He requested that the issue be placed under pending for further discussion. Karen Williams reported that 3 fire retirees, 3 police retirees did not send in completed certification forms after receiving their second notice. These retirees will be sent a final notice and their pension will be suspended until their certification has been completed and sent to the Retirement Office. Karen Williams reviewed the Quarterly Cash Flow withdrawal recommendation from Asset Consulting Group. Ms. Rives reviewed the Employees Retirement System quarterly cash flow request. Asset Consulting Group recommendation was to redeem $3,450,000 from the MD Sass portfolio and $3,450,000 from the Western Asset portfolio that was currently overweight to fixed income. The Retirement Board discussed transferring $50,000 from the Northern Trust securities lending to Comerica for the Board's administrative expenses. It was moved by Trustee Hecksel and supported by Trustee Oleson to redeem $3,450,000 from MD Sass and $3,450,000 from Western Asset investments for quarterly cash flow needs as outlined by Asset Consulting Group's recommendation, and to redeem $50,000 from Northern Trust securities lending account for administrative expenses. Adopted by the following vote: 5 -0. Regular Meeting June 17, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Karen Williams reported that the Joint Board Meeting discussed a due diligence trip to Asset Consulting Group in October. Asset Consulting Group has provided the dates, October 1 - 3. Ms. Williams requested that members confirm their attendance by the July meeting. The Board discussed the NCPERS Public Safety Conference that was scheduled for October 26-29. Trustee Oleson encouraged members to attend. It was moved by Trustee Oleson and Trustee Hecksel to allow any Police and Fire Retirement trustee and Attorney Ken Lane to attend the NCPERS Public Safety Conference, scheduled for October 26 -29. Adopted by the following vote: 5 - 0 Trustee St. Aubin informed the Board that he was contacted by Greg Stump, Boomershine Consulting Group regarding the status of the OPEB and financial assets data. Ms. Williams explained that the OPEB valuation is a separate report concerning health care and is different from the yearly actuarial valuation. Ms. Williams reported that she contacted Ms. Angela Bennett. Ms. Bennett informed her that the Finance Department is working to provide the asset and OPEB data. Trustee Wood inquired if there was a time frame given for the information and requested a timeline for the data submission. Trustee St. Aubin requested that the OPEB valuation data request be added to the pending list on the agenda. Ms. Williams reported that Munder Capital/Integrity investment fund had been acquired by Victory Capital. Munder has requested that the Police and Fire Retirement Board sign a requested consent form, authorizing Integrity Investment management agreement to formally transfer to Victory Capital. Asset Consulting Group (ACG) provided a written recommendation to the Board to sign the requested consent ACG outlined in the memo that based upon their conversations with Munder, Integrity and Victory, that there were no anticipated changes to the investment personnel or approach in which strategies are manager. ACG will continue to monitor the transition and keep the Board informed of future changes and concerns. It was moved by Trustee Wood and supported by Trustee Oleson to approve the consent form that authorized Integrity Investment management agreement to formally transferred to Victory Capital. Adopted by the following vote. Karen Williams reviewed the Monthly Investment Report and Securities Lending Reports for the period ending May 31, 2014. It was moved by Trustee Oleson and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 5 - 0 The meeting adjourned at 9:44 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:32 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus (8:37a.m.), Oleson, St. Aubin, Wood— 7. Absent: Trustee Bernero Others: Angela Bennett, Karen E. Williams, Finance Department; Mark Parker, Employees' Retirement System Board; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting r-of June 17, 2014. " s Adopted by the following vote: 6 — 0 G-) Fri j There were no public comments. m Secretary's Report. n, G 0 new fire member(s), 2 new police members, 0 reinstatement(s), 0 refund(s),a co transfers, 0 retired. Total: Active membership: 333. 3 death(s). Virginia E. DeCair, died May 17, 2014, age 96, spouse of Fire retiree; Lawrence Bauer, Police, died 6/23/2014, age 68, no beneficiary; Jerry D. Mills, Police, died July 9, 2014, age 77, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of June 2014 amounted to $2,261,435.82. Total retirement checks printed for the P&F System: 698. Total retirement checks printed for both systems: 1596. Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Oleson and supported by Trustee Hecksel to approve the following applications for Regular Age and Service Retirements: Judith Horning, Police Department, 25 years of service credit, age 55, effective August 12, 2014 (with purchase of 1 year, 3 months of service credits) Bradley D. Drury, Fire Department, 25 years of service credit, age 45, effective August 16, 2014 (with purchase of 1 year of service credits) Adopted by the following vote: 6 —0. There were no requests for duty disability. Karen Williams reported that Applicant #2014-F0513 has seen the medical director and the subcommittee is waiting for Dr. Roth's report. Trustee Hecksel inquired if there was a problem with applicant's appointment with the medical director. Ms. Williams reported that she contacted the medical director's office and was informed that documents for Applicant #2014-F0513 had been received. The Retirement Office informed the Board that no diagnosis was sent to medical director. The Retirement Office only informed the medical director that an applicant was being evaluated for duty or non-duty disability. There were no requests for refund of accumulated contributions. Ms. Antonia Kraus arrived at the meeting. Ms. Williams updated the Police and Fire Retirement Board regarding the Arrivos software project. The Tegrit team will be focused on the retirement calculators. Ms. Williams also reported to the Board regarding the sale of Tegrit Technologies. MERS has decided to negotiate the sale to a group of Tegrit senior management employees. Trustee St. Aubin stated he had Attorney Ken Lane review the current contract regarding the sale. Attorney Ken Lane reported that there was an assignment clause in the contract. The City of Lansing Retirement Boards needed to sign a consent form to assign the contract to the new company, Tegrit Software Ventures. The contract provisions and protections will remain the same. Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Williams announced the Fall Mapers Conference would be held September 14 -16 in Acme, Michigan. Ms. Williams requested that application and requests be submitted before the August 15, 2014 deadline for early registration. Ms. Williams also announced the NCPERS Public Safety Conference October 26 - 29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Lane updated the Police and Fire Retirement Board that the City Attorney's Office had completed a draft of the Retirement Ordinance to include the new provisions of the Fire Contract. The Contract has been provided to the Human Resources Department for review. After the Human Resources department reviews the draft, it can be prepared for City Council. City Council can refer the document to the retirement board for review. Attorney Lane updated the Police and Fire Board regarding the Dewpoint contract extension for Dawn Polihonki's work on the software project. Attorney Lane informed the Board that the Employees' Retirement System had approved the extension. Attorney Lane added language to ensure that Ms. Polihonki's time for the Board is not mingled with other duties she has with the City. Also language was added to the contract to prohibit Ms. Polihonki from becoming a City employee and having a contract with the Retirement Board. Karen Williams updated the ERS Board regarding the Due Diligence Visit to Asset Consulting Group scheduled for October 1 -3. Ms. Williams discussed travel options for trustees, flight arrangements from Lansing City Airport and Detroit Metro Airport. Trustees requested that the Retirement Office research non-stop options from nearby airports. Ms. Williams reported that Angela Bennett received a fee agreement for new GASB 67/68 accounting provisions for the retirement plans from Boomershine Consulting Group. Attorney Ken Lane reported that he reviewed the actuarial contract and believed that Boomershine Consulting Group's obligation is to prepare an actuarial valuation report which includes all information needed to comply with required GASB standards, procedures, and all applicable state and federal laws. Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Lane opined that he did not believe the system should have to pay the additional fee. The new GASB accounting provision should be included under the current contract. Attorney Lane stated that he would talk to Mr. Greg Stump regarding the contract. Trustee Kraus provided a computer presentation of a shared folder that she had the Information Technology department create for the Retirement Boards. The shared folder has been set up as R: Drive. The drive will be a central location for trustees and retirement board documents and information. The drive would be available for members who had access to the city servers. Trustee Kraus reported that the Retirement Office would be able to save agenda, minutes and other Board material on the drive for members. No employee-based information will be available on the drive. Trustee Kraus believed that a trustee link could be set up on the Retirement web page for members who did not have access to city servers. Trustee Wood stated that the link could be similar to what is done with City Council. Documents that are available for action by Trustees can be made available on the website. Trustee Kraus stated that the drive can be formatted to be the Retirement Board specifications. The Retirement Office will manage the R Drive. Angela Bennett provided an update for the OPEB Valuation data. Ms. Bennett explained that OPEB information includes retiree health care and other post- employment benefits. The accounting department is working to provide the asset information. The demographic data collection for the OPEB is pending. Karen Williams reviewed the Monthly Investment Report and Securities Lending Reports for the period ending June 30, 2014. Trustee St. Aubin inquired regarding the performance of the Private Advisors investment. Trustee Benson also inquired regarding how the City of Lansing Retirement systems portfolio compared with other within Michigan. The Board discussed a MAPERS study that compared similar plan within Michigan Trustee Kraus inquired about how the health care for the Police and Fire Retirement System is invested. Ms. Bennett stated that the health care assets are invested within the portfolio, but the assets are not counted toward the actuarial valuation or pension liabilities. It was moved by Trustee Benson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 7 - 0 t The meeting adjourned at 9:44 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:32 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus (8:37a.m.), Oleson, St. Aubin, Wood— 7. Absent: Trustee Bernero Others: Angela Bennett, Karen E. Williams, Finance Department; Mark Parker, Employees' Retirement System Board; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Wood to approvp.jhe Official Minutes of the Police and Fire Retirement System Board Meeting,Df 9&e 17, 2014. TO U' 1 Adopted by the following vote: 6 — 0 _ r There were no public comments. rn o r •• Secretary's Report. ' w 0 new fire member(s), 2 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 333. 3 death(s). Virginia E. DeCair, died May 17, 2014, age 96, spouse of Fire retiree; Lawrence Bauer, Police, died 6/23/2014, age 68, no beneficiary; Jerry D. Mills, Police, died July 9, 2014, age 77, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of June 2014 amounted to $2,261,435.82. Total retirement checks printed for the P&F System: 698. Total retirement checks printed for both systems: 1596. Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Oleson and supported by Trustee Hecksel to approve the following applications for Regular Age and Service Retirements: Judith Horning, Police Department, 25 years of service credit, age 55, effective August 12, 2014 (with purchase of 1 year, 3 months of service credits) Bradley D. Drury, Fire Department, 25 years of service credit, age 45, effective August 16, 2014 (with purchase of 1 year of service credits) Adopted by the following vote: 6 — 0. There were no requests for duty disability. Karen Williams reported that Applicant #2014-F0513 has seen the medical director and the subcommittee is waiting for Dr. Roth's report. Trustee Hecksel inquired if there was a problem with applicant's appointment with the medical director. Ms. Williams reported that she contacted the medical director's office and was informed that documents for Applicant #2014-F0513 had been received. The Retirement Office informed the Board that no diagnosis was sent to medical director. The Retirement Office only informed the medical director that an applicant was being evaluated for duty or non-duty disability. There were no requests for refund of accumulated contributions. Ms. Antonia Kraus arrived at the meeting. Ms. Williams updated the Police and Fire Retirement Board regarding the Arrivos software project. The Tegrit team will be focused on the retirement calculators. Ms. Williams also reported to the Board regarding the sale of Tegrit Technologies. MERS has decided to negotiate the sale to a group of Tegrit senior management employees. Trustee St. Aubin stated he had Attorney Ken Lane review the current contract regarding the sale. Attorney Ken Lane reported that there was an assignment clause in the contract. The City of Lansing Retirement Boards needed to sign a consent form to assign the contract to the new company, Tegrit Software Ventures. The contract provisions and protections will remain the same. Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Williams announced the Fall Mapers Conference would be held September 14 -16 in Acme, Michigan. Ms. Williams requested that application and requests be submitted before the August 15, 2014 deadline for early registration. Ms. Williams also announced the NCPERS Public Safety Conference October 26 - 29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Lane updated the Police and Fire Retirement Board that the City Attorney's Office had completed a draft of the Retirement Ordinance to include the new provisions of the Fire Contract. The Contract has been provided to the Human Resources Department for review. After the Human Resources department reviews the draft, it can be prepared for City Council. City Council can refer the document to the retirement board for review. Attorney Lane updated the Police and Fire Board regarding the Dewpoint contract extension for Dawn Polihonki's work on the software project. Attorney Lane informed the Board that the Employees' Retirement System had approved the extension. Attorney Lane added language to ensure that Ms. Polihonki's time for the Board is not mingled with other duties she has with the City. Also language was added to the contract to prohibit Ms. Polihonki from becoming a City employee and having a contract with the Retirement Board. Karen Williams updated the ERS Board regarding the Due Diligence Visit to Asset Consulting Group scheduled for October 1 -3. Ms. Williams discussed travel options for trustees, flight arrangements from Lansing City Airport and Detroit Metro Airport. Trustees requested that the Retirement Office research non-stop options from nearby airports. Ms. Williams reported that Angela Bennett received a fee agreement for new GASB 67/68 accounting provisions for the retirement plans from Boomershine Consulting Group. Attorney Ken Lane reported that he reviewed the actuarial contract and believed that Boomershine Consulting Group's obligation is to prepare an actuarial valuation report which includes all information needed to comply with required GASB standards, procedures, and all applicable state and federal laws. Regular Meeting July 15, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Lane opined that he did not believe the system should have to pay the additional fee. The new GASB accounting provision should be included under the current contract. Attorney Lane stated that he would talk to Mr. Greg Stump regarding the contract. Trustee Kraus provided a computer presentation of a shared folder that she had the Information Technology department create for the Retirement Boards. The shared folder has been set up as R: Drive. The drive will be a central location for trustees and retirement board documents and information. The drive would be available for members who had access to the city servers. Trustee Kraus reported that the Retirement Office would be able to save agenda, minutes and other Board material on the drive for members. No employee-based information will be available on the drive. Trustee Kraus believed that a trustee link could be set up on the Retirement web page for members who did not have access to city servers. Trustee Wood stated that the link could be similar to what is done with City Council. Documents that are available for action by Trustees can be made available on the website. Trustee Kraus stated that the drive can be formatted to be the Retirement Board specifications. The Retirement Office will manage the R Drive. Angela Bennett provided an update for the OPEB Valuation data. Ms. Bennett explained that OPEB information includes retiree health care and other post- employment benefits. The accounting department is working to provide the asset information. The demographic data collection for the OPEB is pending. Karen Williams reviewed the Monthly Investment Report and Securities Lending Reports for the period ending June 30, 2014. Trustee St. Aubin inquired regarding the performance of the Private Advisors investment. Trustee Benson also inquired regarding how the City of Lansing Retirement systems portfolio compared with other within Michigan. The Board discussed a MAPERS study that compared similar plan within Michigan Trustee Kraus inquired about how the health care for the Police and Fire Retirement System is invested. Ms. Bennett stated that the health care assets are invested within the portfolio, but the assets are not counted toward the actuarial valuation or pension liabilities. It was moved by Trustee Benson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 7 - 0 t The meeting adjourned at 9:44 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. F 10th Floor, City Hallf Lansing, MI `--a n� C-) The Board was called to order at 8:35 a.m. co r-71 Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Woad— T� I--.I Absent: Trustee Bernero r 1 Others: Angela Bennett, Karen E. Williams, Finance Department; Attot ey Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of July 15, 2014. Adopted by the following vote: 7 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 333. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of July 2014 amounted to $2,256,268.55. Total retirement checks printed for the P&F System: 697. Total retirement checks printed for both systems: 1592. Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved Trustee Fabus and supported by Trustee Kraus to approve the following applications for Regular Age and Service Retirements: Ronald L. Seyka, Police Department, 25 years of service credit, age 49, effective September 13, 2014. David Dahlke, Police Department, 25 years of service credit, age 50, effective September 20, 2014. Adopted by the following vote: 7 — 0. Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no requests for duty disability. Karen Williams reported that the medical report for Applicant #2014-F0513 was received and forwarded to the disability subcommittee for review The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet to discuss the medical report of Applicant #2014-F0513. The Board recessed at 8:38. The Board resumed at 8:42. Trustee Hecksel reported that the disability subcommittee had met and recommended concurrence with the medical director's report to approve the non- duty disability request. It was moved by Trustee Hecksel and supported by Trustee Kraus to concur with the medical director's report and approve the non-duty disability request of Applicant #2014-F0513. Adopted by the following vote: 7 -0 There were no requests for refund of accumulated contributions. Ms. Williams updated the Police and Fire Retirement Board regarding the Arrivos software project. The Tegrit team continued to work on the retirement calculators. Tegrit has started the transition to a new project manager. Tegrit has started development of the Arrivos Calculators and continues work with the PBI (death audit vendor) to automate the process. Trustee St. Aubin stated he had Attorney Ken Lane review the current contract regarding the sale. Attorney Ken Lane reported that there was an assignment clause in the contract. The City of Lansing Retirement Boards needed to sign a consent form to assign the contract to the new company, Tegrit Software Ventures. The contract provisions and protections will remain the same. Ms. Williams announced the Fall MAPERS Conference would be held September 14 -16 in Acme, Michigan. Ms. Williams reported that confirmation for Fall MAPERS should have been received for the conference for those members attending. Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Williams also announced the NCPERS Public Safety Conference October 26 - 29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Ken Lane updated the Employees Retirement System Board regarding Boomershine Consulting Group request for additional fees for GASB standard reports. Attorney Lane opined last month that the ERS Board was not required to pay additional fees for actuarial valuation to comply with GASB standard. Attorney Ken Lane contacted Greg Stump who explained that it is an additional report that would supplement the annual valuation. The additional report would outline the requirements and the steps taken to comply with the new GASB standards. Trustee Kraus requested that the discussion regarding the additional GASB report be placed on the Joint Board retirement meeting agenda. Angela Bennett suggested that she contact Greg Stump for further clarification to see if the additional report for GASB 67/68 is necessary. Attorney Lane reported that his office is in the process of scanning the trustee handbook for an electronic version. Attorney Lane reported that the Police and Fire Retirement Ordinance has been completed by City Attorney's Office and is under review by Human Resources. After Human Resources review, the draft will go City Council and then will be referred to the Retirement Board. Trustee Wood inquired about a time line for this process and expressed concern that the Ordinance would not be before the Retirement Board within 90 days. Attorney Lane believed that the Ordinance should be back to the Retirement Board at its next meeting. Karen Williams reviewed the Quarterly Expense Report for the period ending June 30, 2014. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 7 - 0 The meeting adjourned at 9:02 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM MEETING MINUTES Joint Meeting August 19, 2014 Council Conference Room Thursday, 9:15,a.rr� 10th Floor City Hall CO - ' Lansing, MI 1� _ c D The meeting was called to order at 9:17 a.m. --' „ A quorum of the Police and Fire Retirement Board was present. i .. 0. Trustees present: (Police & Fire), Benson, Fabus, Hecksel, Kraus, Oleso�'; St. Aubin, Wood — 7. (ERS), Kraus, Munroe, M. Parker —3. Others present: Angela Bennett, Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Hugh Lamle, MD Sass; Haley Rives, Asset Consulting Group. Attorney Ken Lane reviewed Boomershine Consulting Group request for additional fees for GASB standard reports. Attorney Lane opined last month that the Retirement Boards were not required to pay additional fees for the actuarial valuation to comply with the new GASB 67/68 standards. The estimated costs would range between $2,500 and $4,000. Attorney Ken Lane contacted Greg Stump who explained that it is an additional report that would supplement the annual report. The additional report would outline the requirements and the steps taken to comply with the new GASB standards. Angela Bennett stated that she would contact Greg Stump and request clarification regarding the reports to determine if they are necessary. Mr. Hugh Lamle provided an investment strategy review of MD Sass. He discussed the Employees Retirement System and the Police and Fire Retirement System portfolios performance results, asset allocation analysis and a consolidated fixed income summary. Mr. Carr also provided a review of the portfolio holdings. Ms. Rives reviewed the Police and Fire Retirement System quarterly cash flow request. Asset Consulting Group recommendation was to redeem $3,350,000 from the Northern Trust S&P 500 Index portfolio and $3,350,000 from the T. Rowe Price portfolio that was overweight to large cap equities. It was moved by Trustee Kraus and supported by Trustee Fabus to redeem $3,350,000, from Northern Trust S&P 500 Index, and $3,350,000 from T. Rowe Price, for quarterly cash flow needs as outlined by Asset Consulting group. Adopted by the following vote: 7 -0. Ms. Rives provided a proposed agenda for the due diligence visit to Asset Consulting Group, October 1 — 3. The Joint Retirement Boards discussed flight arrangements. The trustees preferred non-stop flights available on October 1 -2 and requested an updated agenda to accommodate the flight times. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 2nd quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending June 30, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. There were no public comments. It was moved by Trustee Wood and supported by Trustee Kraus to adjourn the meeting. Adopted by the following vote: 7 - 0 The Meeting adjourned at 10:12 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting September 23, 2014 --� Council Conference Room Tuesday, 8.30 a.m. w CD 10th Floor, City Hall '' C-; Lansing, MI '4. Fri The Board was called to order at 8:31 a.m. Q �n l - r Present: Trustees Benson, Fabus, Hecksel, Kraus (8:46), Oleson, Wood— 5._,' Absent: Trustee Bernero, Kraus, St. Aubin Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Oleson and supported by Trustee Benson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of August 19, 2014. Adopted by the following vote: 5 — 0 It was moved by Trustee Hecksel and supported by Trustee Benson to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees' Retirement System Board of August 19, 2014. Adopted by the following vote: 5 - 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 331. 1 death(s), Carolyn J. Curtis, died 8/12/2014, age 90, spouse of Police retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of August 2014 amounted to $2,266,881.46. Total retirement checks printed for the P&F System: 699. Total retirement checks printed for both systems: 1593. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 1. Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Hecksel and supported by Trustee Kraus to approve the following applications for Regular Age and Service Retirements: Roberta Fockler, Fire Department, 25 years of service credit, age 52, effective September 27, 2014. (w/purchase of 11 months of universal service credits) David Ellis, Police Department, 19 years, 1 month of service credit, age 55, effective October 18, 2014 Lyle Stampski, Fire Department, 25 years of service credit, age 54, effective October 22, 2014 (w/the purchase of 12 months of military service credits) Adopted by the following vote: 7 - 0. Karen Williams reported that the medical report for Mr. Coddington's re- examination had been received and provided to the disability subcommittee. Trustee Hecksel reported that the medical report had been reviewed and the recommendation from Dr. Roth was to continue the duty disability retirement of Mr. Coddington. There were no requests for Non-Duty Disability retirements. There were no requests for refund of accumulated contributions. Ms. Williams reported that the Retirement Office received notice from Trustee St. Aubin that he would be out of town and not able to attend the Board meeting. Trustee St. Aubin requested to be excused. It was moved by Trustee Hecksel and supported by Trustee Fabus to excuse Trustee St. Aubin from the September Police and Fire Retirement Board meeting. The Board noted that Trustee Kraus was an ex-officio member and did not need to be formally excused. Adopted by the following vote: 5 - 0 Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams reported that Tegrit has requested the electronic version of the reduction factors used for optional forms of the payment of benefits. The factor sheet currently exists in paper form, but needs to be loaded into the Arrivos Calculator Database. Greg Stump, Boomershine Consulting Group, recommended that new reduction factors should be considered based upon updated mortality tables. Karen Williams reported that Tegrit has completed work on the Calculator Engine technical specifications and have provided screen designs for the Calculator and Web Estimator. Ms. Williams reviewed the draft calculation sheets that would be produced from the Arrivos Software. She requested that Trustee review the drafts for their input. The PBI integration has been completed. Trustee Kraus entered the meeting. Trustee Benson inquired about the cost of the project. Trustee Wood explained that the project cost would be split between both boards would allow continuity for the Retirement Office when there is a new employee. Trustee Kraus also added that the manual process is archaic and needs to be updated for the future. Trustee Hecksel provided an oral report of his attendance at the MAPERS Fall Conference held September 14 -16. Trustee Hecksel reported that he attended workshops that provided a comparison of the Defined Contribution and Defined Benefit Plans. Trustee Fabus reported that he also enjoyed the networking opportunities and that is was one of the better MAPERS conferences. Attorney Ken Lane provided a legislative update of topics discussed at the MAPERS Conference. Attorney Lane highlighted Public Act 314 section regarding the establishment of an investment committee that applies mainly to the City of Detroit. The investment committee would have the ability to overrule the selection by the Board of Trustees. Attorney Lane also discussed proposed HB 4804 that details if a municipality moves to the Defined Contribution Plan, the decision to move back to a Defined Benefit Plan cannot be collectively bargained. Trustee Benson submitted and discussed his written report of his MAPERS Conference attendance that highlighted issues such as Trustee responsibilities. Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Oleson provided his report and stated that MAPERS Conference presented a wide variety of information on difference between retirement plans, global macro-economic outlook., emerging markets, and actuarial issues. Ms. Williams discussed hotel arrangements for the NCPERS Public Safety Conference October 26 -29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Lane has completed the scan of the Trustee book and will provide the electronic version to the Retirement Office. Attorney Lane updated the Board that Human Resources completed its review of the Police and Fire Retirement Ordinance. The draft has been forwarded to the Mayor and the City Council. Trustee Wood stated that the draft had not been received by the City Council. Trustee Wood informed the Board that Council could make a joint referral to the Police and Fire Retirement Board. Attorney Ken Lane discussed a request to the Police and Fire Retirement System from Robbins Geller Rudman & Dowd to pursue a securities litigation derivative case. Attorney Lane indicated that the suffered losses do not meet the threshold set the Retirement Boards. Attorney Lane also reviewed a news article regarding Robbins Geller Rudman & Dowd who was sanctioned by the California courts. Attorney Lane informed the Board that Milberg law firm and Northern Trust also perform fraud monitoring for the Boards' securities. Attorney Lane stated that he spoke to both chairpersons of the Retirement Boards regarding Robbins Geller Rudman & Dowd's request for the derivative litigation. Attorney Lane reported that Trustee St. Aubin recommended that the Police and Fire Retirement Board not pursue the derivative case, and discuss terminating its contract with the law firm.Attorney Lane concurred with the recommendation. The Police and Fire Retirement Board discussed terminating its contract with Robbins Geller Rudman & Dowd. It was moved Trustee Hecksel and supported by Trustee Benson to terminate its contract with Robbins Geller Rudman and Dowd. Trustee Wood offered a friendly amendment accepted by Trustee Hecksel to provide the information regarding the Board's vote to terminate to the City Attorney's Office. Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Wood indicated that the Robbins Geller Rudman and Dowd had been placed on the approved list for the City Attorney. The City Attorney's Office should be notified of the Board's action and the reasoning so that the approved list of law firms can be revised. Adopted by the following vote: 6-0 Trustee Wood also requested that the Employees Retirement System be notified of the action taken by the Police and Fire Retirement Board regarding Robbins Geller Rudman and Dowd. Attorney Lane stated that he would also discuss the derivative case with the Employees Retirement System Board and inform them of the Police and Fire Retirement Board action. Ms. Williams described the Minute Master Services provided by Gabriel, Roeder and Smith. The fee for 2014 service was quoted as not to exceed $3,100. The Minutes Master Service was approved at the Police and Fire Retirement Meeting. It was moved by Trustee Fabus and supported by Trustee Kraus to approve the 2014 Minute Master Service fee as quoted to not exceed $3,100. Adopted by the following vote: 6-0 Ms. Williams provided an update regarding the actuarial valuation data. Ms. Williams reported that the Accounting Manager and Greg Stump had discussed the asset information. The data for the actuarial valuation has been forward to Boomershine Consulting Group. Mr. Greg Stump is scheduled to present the actuarial valuation at the October meeting. Ms. Williams reviewed the agenda and travel arrangements for the Asset Consulting Group due diligence visit. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending August 31, 2014. Trustee Wood inquired about the balance in the securities lending account. Trustee Wood noted that the balance had reached $3 million and suggested moving a majority of the money back into the portfolio for investment. Trustee Wood asked if the Board would like to discuss transferring these monies for a better investment return. Trustee Kraus agreed that a smaller balance in the securities lending would be appropriate. The remainder of the money should be invested more prudently in the general investment pool. Trustee Hecksel suggested consulting Asset Consulting Group regarding the transferring money from Securities Lending back to the main investments. Trustee Wood provided an overview of the origin of the securities lending account and its purpose. Trustee Oleson requested that Asset Consulting Group be notified of the Board's inquiry so that it can be reviewed at the due diligence meeting. It was moved by Trustee Hecksel and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:20 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. F 10th Floor, City Hall Lansing, MI The Board was called to order at 8:31 a.m. ; c-s Present: Trustees Benson, Fabus, Hecksel, Kraus (8:46), Oleson, Wood— Cn :; Absent: Trustee Bernero, Kraus, St. Aubin -. Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Oleson and supported by Trustee Benson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of August 19, 2014. Adopted by the following vote: 5 — 0 It was moved by Trustee Hecksel and supported by Trustee Benson to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees' Retirement System Board of August 19, 2014. Adopted by the following vote: 5 - 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 331. 1 death(s), Carolyn J. Curtis, died 8/12/2014, age 90, spouse of Police retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of August 2014 amounted to $2,266,881.46. Total retirement checks printed for the P&F System: 699. Total retirement checks printed for both systems: 1593. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 1. Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Hecksel and supported by Trustee Kraus to approve the following applications for Regular Age and Service Retirements: Roberta Fockler, Fire Department, 25 years of service credit, age 52, effective September 27, 2014. (w/purchase of 11 months of universal service credits) David Ellis, Police Department, 19 years, 1 month of service credit, age 55, effective October 18, 2014 Lyle Stampski, Fire Department, 25 years of service credit, age 54, effective October 22, 2014 (w/the purchase of 12 months of military service credits) Adopted by the following vote: 7 — 0. Karen Williams reported that the medical report for Mr. Coddington's re- examination had been received and provided to the disability subcommittee. Trustee Hecksel reported that the medical report had been reviewed and the recommendation from Dr. Roth was to continue the duty disability retirement of Mr. Coddington. There were no requests for Non-Duty Disability retirements. There were no requests for refund of accumulated contributions. Ms. Williams reported that the Retirement Office received notice from Trustee St. Aubin that he would be out of town and not able to attend the Board meeting. Trustee St. Aubin requested to be excused. It was moved by Trustee Hecksel and supported by Trustee Fabus to excuse Trustee St. Aubin from the September Police and Fire Retirement Board meeting. The Board noted that Trustee Kraus was an ex-officio member and did not need to be formally excused. Adopted by the following vote: 5 - 0 Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8.30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams reported that Tegrit has requested the electronic version of the reduction factors used for optional forms of the payment of benefits. The factor sheet currently exists in paper form, but needs to be loaded into the Arrivos Calculator Database. Greg Stump, Boomershine Consulting Group, recommended that new reduction factors should be considered based upon updated mortality tables. Karen Williams reported that Tegrit has completed work on the Calculator Engine technical specifications and have provided screen designs for the Calculator and Web Estimator. Ms. Williams reviewed the draft calculation sheets that would be produced from the Arrivos Software. She requested that Trustee review the drafts for their input. The PBI integration has been completed. Trustee Kraus entered the meeting. Trustee Benson inquired about the cost of the project. Trustee Wood explained that the project cost would be split between both boards would allow continuity for the Retirement Office when there is a new employee. Trustee Kraus also added that the manual process is archaic and needs to be updated for the future. Trustee Hecksel provided an oral report of his attendance at the MAPERS Fall Conference held September 14 -16. Trustee Hecksel reported that he attended workshops that provided a comparison of the Defined Contribution and Defined Benefit Plans. Trustee Fabus reported that he also enjoyed the networking opportunities and that is was one of the better MAPERS conferences. Attorney Ken Lane provided a legislative update of topics discussed at the MAPERS Conference. Attorney Lane highlighted Public Act 314 section regarding the establishment of an investment committee that applies mainly to the City of Detroit. The investment committee would have the ability to overrule the selection by the Board of Trustees. Attorney Lane also discussed proposed HB 4804 that details if a municipality moves to the Defined Contribution Plan, the decision to move back to a Defined Benefit Plan cannot be collectively bargained. Trustee Benson submitted and discussed his written report of his MAPERS Conference attendance that highlighted issues such as Trustee responsibilities. Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Oleson provided his report and stated that MAPERS Conference presented a wide variety of information on difference between retirement plans, global macro-economic outlook., emerging markets, and actuarial issues. Ms. Williams discussed hotel arrangements for the NCPERS Public Safety Conference October 26 -29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Lane has completed the scan of the Trustee book and will provide the electronic version to the Retirement Office. Attorney Lane updated the Board that Human Resources completed its review of the Police and Fire Retirement Ordinance. The draft has been forwarded to the Mayor and the City Council. Trustee Wood stated that the draft had not been received by the City Council. Trustee Wood informed the Board that Council could make a joint referral to the Police and Fire Retirement Board. Attorney Ken Lane discussed a request to the Police and Fire Retirement System from Robbins Geller Rudman & Dowd to pursue a securities litigation derivative case. Attorney Lane indicated that the suffered losses do not meet the threshold set the Retirement Boards. Attorney Lane also reviewed a news article regarding Robbins Geller Rudman & Dowd who was sanctioned by the California courts. Attorney Lane informed the Board that Milberg law firm and Northern Trust also perform fraud monitoring for the Boards' securities. Attorney Lane stated that he spoke to both chairpersons of the Retirement Boards regarding Robbins Geller Rudman & Dowd's request for the derivative litigation. Attorney Lane reported that Trustee St. Aubin recommended that the Police and Fire Retirement Board not pursue the derivative case, and discuss terminating its contract with the law firm.Attorney Lane concurred with the recommendation. The Police and Fire Retirement Board discussed terminating its contract with Robbins Geller Rudman & Dowd. It was moved Trustee Hecksel and supported by Trustee Benson to terminate its contract with Robbins Geller Rudman and Dowd. Trustee Wood offered a friendly amendment accepted by Trustee Hecksel to provide the information regarding the Board's vote to terminate to the City Attorney's Office. Regular Meeting September 23, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Wood indicated that the Robbins Geller Rudman and Dowd had been placed on the approved list for the City Attorney. The City Attorney's Office should be notified of the Board's action and the reasoning so that the approved list of law firms can be revised. Adopted by the following vote: 6-0 Trustee Wood also requested that the Employees Retirement System be notified of the action taken by the Police and Fire Retirement Board regarding Robbins Geller Rudman and Dowd. Attorney Lane stated that he would also discuss the derivative case with the Employees Retirement System Board and inform them of the Police and Fire Retirement Board action. Ms. Williams described the Minute Master Services provided by Gabriel, Roeder and Smith. The fee for 2014 service was quoted as not to exceed $3,100. The Minutes Master Service was approved at the Police and Fire Retirement Meeting. It was moved by Trustee Fabus and supported by Trustee Kraus to approve the 2014 Minute Master Service fee as quoted to not exceed $3,100. Adopted by the following vote: 6-0 Ms. Williams provided an update regarding the actuarial valuation data. Ms. Williams reported that the Accounting Manager and Greg Stump had discussed the asset information. The data for the actuarial valuation has been forward to Boomershine Consulting Group. Mr. Greg Stump is scheduled to present the actuarial valuation at the October meeting. Ms. Williams reviewed the agenda and travel arrangements for the Asset Consulting Group due diligence visit. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending August 31, 2014. Trustee Wood inquired about the balance in the securities lending account. Trustee Wood noted that the balance had reached $3 million and suggested moving a majority of the money back into the portfolio for investment. Trustee Wood asked if the Board would like to discuss transferring these monies for a better investment return. Trustee Kraus agreed that a smaller balance in the securities lending would be appropriate. The remainder of the money should be invested more prudently in the general investment pool. Trustee Hecksel suggested consulting Asset Consulting Group regarding the transferring money from Securities Lending back to the main investments. Trustee Wood provided an overview of the origin of the securities lending account and its purpose. Trustee Oleson requested that Asset Consulting Group be notified of the Board's inquiry so that it can be reviewed at the due diligence meeting. It was moved by Trustee Hecksel and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:20 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:32 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus (8:38), Oleson, Wood— 6. Absent: Trustee Bernero, St. Aubin Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of September 23, 2014. Adopted by the following vote: 5 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 331. 4 death(s), Bonita I. Eisele, died 9/6/2014, age 85, spouse of Fire retiree; Mark Holliday, Fire, died 9/18/2014, age 83, no surviving beneficiary; Lawrence Devlin, Fire, died 9/20/2014, age 79, spouse to receive 50%; Marvin W. Stump, Fire, died 9/27/2014, age 84, beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to- date amount to $0.00. Retirement allowances paid for the month of September 2014 amounted to $2,288,183.61. Total retirement checks printed for the P&F System: 701. Total retirement checks printed for both systems: 1609. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Fabus and supported by Trustee Hecksel to approve the following applications for Regular Age and Service Retirements: Richard A. Reust, Police Department, 25 years of service credits, age 48, effective November 15, 2014. Adopted by the following vote: 6 — 0. There were no requests for duty disability retirement. There were no requests for non-duty disability retirement. Karen Williams reported the following requests for refund of accumulated contributions: Kedrick Doezema, Police, $15,277.37; Brenton Listerman, Police, $2,815.90. Karen Williams reported from Trustee St. Aubin that he would be out of town and not able to attend the Board meeting. Trustee St. Aubin requested to be excused. It was moved by Trustee Fabus and supported by Trustee Hecksel to excuse Trustee St. Aubin from the October Police and Fire Retirement Board meeting. Adopted by the following vote: 6 - 0 Karen Williams reported that Tegrit has completed work on the Calculator Engine technical specifications and have moved on to retirement processes that would include as payroll interface. Trustee Fabus provided an oral report of the Asset Consulting Meeting due diligence visit. Trustee Fabus was very impressed and appreciated the intensive workshop of the retirement board's portfolio and its asset allocation. Trustee Hecksel concurred that the due diligence visit was very informative and appreciate the ability to focus on the board's financial portfolio. Trustee Oleson accomplished a lot by taking an in-depth review of the portfolio and the bond investment discussion. Trustee Kraus provided an oral report regarding the due diligence visit to Asset Consulting Group and thought that it was a good learning experience. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Benson concurred that the due diligence visit was an informative review of the Police and Fire Retirement Board portfolio. Trustee Benson also noted that was no staff diversity. Trustee Benson mentioned it to the Asset Consulting Group. Trustee Kraus expressed caution that the Police and Fire Retirement Board could recommend but not force the company's actions. Trustee Benson provided a written report of his attendance to the I.F.E.B.P. Report. Mr. Benson discussed the workshop that he attended that included issues regarding the Affordable Care Act, the effective use of actuaries and administrative health care cost control. Karen Williams notified the Police and Fire Retirement Board that the I.F.E.B.P. Annual Conference was held in Boston, a higher cost area. Ms. Williams requested approved for Mr. Benson's meal and travel reimbursement at the higher rate. It was moved by Trustee Hecksel and supported by Trustee Fabus to approve the meal and travel reimbursement for Mr. Benson. Adopted by the following vote: 6 — 0 Ms. Williams discussed hotel arrangements for the NCPERS Public Safety Conference October 26 -29 in New Orleans. Trustee Wood distributed a draft of the Police and Fire Retirement Ordinance. Trustee Wood indicated that the Ordinance requires a public hearing and provided the Council remaining schedule for the year. Trustee Wood explained that subcommittee should meet to review the draft and make a recommendation to the full Police and Fire Retirement Board. The Retirement Board would then make a recommendation to the City Council. Attorney Ken Lane informed the Board that the City Attorney's Office and the Human Resources Office had reviewed the Police and Fire Retirement Ordinance. Attorney Ken Lane updated the Police and Fire Retirement System regarding the termination of Robbins Geller Rudman & Dowd. Attorney Lane received a response from Robbins Geller requesting that attend the November Joint meeting to provide information upon the sanctions reported in the news. Attorney Lane informed the law firm to process the termination as the Board requested and he would inform them of the Board's decision regarding the November meeting. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Lane indicated that the agreement with the securities monitoring firm stated that upon termination, the Board must receive a letter indicating the all portfolio information for the Police and Fire Retirement System had been destroyed. The Police and Fire Retirement System discussed and declined Robbins Geller Rudman & Dowd request to attend the November Joint Board meeting. Attorney Lane reported to the Employees Retirement System Board that Ms. Angela Bennett received a request from the Lansing financial health team working with a group of Michigan State University to review actuarial valuations from prior year. Ms. Bennett contacted legal counsel to review the request. Attorney Lane and Ms. Bennett met with the students and informed them that only the public report valuations would be made available. All of the reports are public records. Trustee Wood suggested that the Police and Fire Retirement Board make a statement to the Lansing Financial Health Team. Trustee Wood expressed that the Police and Fire Retirement Board are responsible for the contribution and will make decisions on what is best for retirees. Attorney Lane opined that the Police and Fire Retirement Board has Boomershine Consulting Group as its actuary and would not be bound by any report by the student group. Attorney Lane reported that he contacted both retirement board chairpersons regarding the request. Ms. Bennett added that the students are working on a project that includes projections and reviewing trends. Ms. Bennett stated that the project is only for the semester and would not go into much depth. Trustee Benson also expressed concern regarding how the report would be published. Karen Williams submitted the Northern Trust Custodian Bank SAS 70 Report for review by the trustees per Police and Fire Retirement Board Policy. Ms. Williams reported that the Board generally accepts the report each year after legal and information technology review. Attorney Ken Lane stated that he will review the SAS 70 Report and provide his recommendation at the next meeting. The Police and Fire Retirement Board will also review the report and discuss at the next meeting. Trustee Oleson referred the SAS 70 report to pending. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Karen Williams reported that the 2015 annual membership dues for the following organizations: MAPERS, $100; NCPERS, $250; and IFEBP, $835 (split between ERS and Police and Fire Retirement Boards) It was moved by Trustee Kraus and supported by Trustee Benson to approve the annual membership dues for 2015 and pay the fees from the Board's administrative account. Adopted by the following vote: 6-0 Karen Williams reviewed the Police and Fire Retirement Board election rules. Trustee Hecksel's last meeting would be December 18, 2014, before his retirement. Ms. Williams provided and discussed a posting for Fire Trustee Election with rules, and dates for election. Trustee Oleson moved the Asset Consulting Group Investment materials to pending until they can be reviewed by trustees and discussed at the November Joint meeting. Attorney Lane reported that Asset Consulting Group (ACG) provided a recommendation for the Northern Trust Securities Lending account change. ACG selected Core Plus and Attorney Lane has reviewed the documents for Board approval. Mr. Gregory Stump, Boomershine Consulting Group provided an overview of the Police and Fire Retirement System Actuarial Valuation as of December 31, 2013. Mr. Stump discussed the current status of the system, reviewing the plan population and the investment experience for 2013. Mr. Stump discussed the unfunded actuarial liability, assets, and city contribution. Mr. Stump recommended that Police and Fire Retirement Board implement changes to the investment return assumption to 7.5% with a 3.0% inflation assumption and re-set the asset smoothing strategy to recognize pre-2013 gains. Trustee Hecksel inquired to Mr. Stump regarding the impact of the changes on the city contributions. Mr. Stump explained that the contribution would increase but at a more gradual rate with the asset smoothing strategy. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Trustee Wood inquired to Mr. Stump what the contributions would be if the investment and interest rate assumptions are not adopted. Ms. Bennett reviewed the valuation numbers and provided four potential rate assumption change scenarios and its impact on the city's contribution and budget. Ms. Bennett stated that the Police and Fire Retirement contribution was budgeted at $11.3 million. Ms. Bennett suggested staging the changes to either the 7.7% with a 3.2% inflation assumption or the 7.6% with 3.1% inflation rate assumption without the asset smoothing. Ms. Bennett recommended no asset smoothing because of concerns for the funding status and impact to retirement systems. Trustee Kraus discussed an incremental change to the investment and inflation assumptions instead of moving directly to the 7.5% with 3.0% inflation rate assumption. Trustee Fabus inquired if an incremental change would be harmful to system. Trustee Fabus expressed that his primary concern is the impact of the changes with the Police and Fire Retirement System. Mr. Greg Stump indicated that an incremental change would not be harmful, but contributions will still need to increase. Attorney Lane opined that each trustee is a fiduciary to the system. If trustee approve decisions that make it impossible for the city to make it contributions would not be good for the system. Attorney Lane stated that the Police and Fire Retirement System could adopt a higher rate of investment assumption and inflation assumption than recommended by Boomershine Consulting Group. The Police and Fire Retirement System could re-visit changes to the assumption rates. It was moved by Trustee Hecksel and supported by Trustee Wood to adopt the investment rate of assumption at 7.5% with 3.0% inflation rate assumption with the asset re-set the smoothing for the valuation of December 31, 2013. Trustee Wood made a friendly amendment that was accepted by Trustee Hecksel to adopt an investment rate of assumption at 7.6% with 3.1% inflation rate assumption with the re-set of the smoothing strategy. Angela Bennett stated that she looked at retirement contribution as a whole for both board together. Ms. Bennett stated that $21.2 million was budgeted for both systems. Ms. Bennett stated that if the Employees Retirement System also adopts the 7.5% with 3.0% inflation rate of assumption, the increase in contribution would further increase the city budget. Trustee Oleson stated that he was more comfortable with the 7.6% with 3.1% inflation rate, and asked for Mr. Stump's opinion. Mr. Gregory Stump stated that spread is the same and the assumption rates at 7.6% with 3.1% is more conservative than the current assumption. Ms. Stump would support the amendment. Adopted by the following vote: 6-0 Mr. Stump reviewed the administrative tables that detail factors for optional forms of benefit. Mr. Stump reviewed that the factors for optional forms of benefit. He recommended that current tables better aligned with the updated mortality tables. Mr. Stump stated that the impact of factor will provide a slightly higher benefit for future retirees who are affected. Mr. Stump noted that there would be no direct impact on valuation. Attorney Ken Lane explained that the chairperson inquired if he could approve new factors for the Police and Fire Retirement Board to assist the Tegrit project. The chairperson sent notification to trustees regarding the change. It was moved by Trustee Wood and supported by Trustee Hecksel to adopt the 50% Joint and Survivor (non-spousal) factors, retroactive to the chairperson's approval. Adopted by the following vote: 6 — 0. Trustee Oleson expressed concern that Police and Fire Retirement Board did not have more time to review the recommendations and asked if the valuation information can be provided sooner. Ms. Bennett explained that some of the data was delayed due to staffing levels. Mr. Stump reviewed the funding and contribution outlook. Mr. Stump will send a funding policy for the Board's review. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending September 30, 2014. It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 10:41 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. r� 10th Floor, City Hall y Lansing, MI C7 Ln The Board was called to order at 8:33 a.m. s Benson Hecksel, Kraus, Oleson, St. Aubin, Wood— 6. Present: Trustee r- Absent: Trustee Bernero, Fabus Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney' Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Benson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of October 21, 2014. Adopted by the following vote: 6 — 0 Mr. Steve Harry had three comments for the Police and Fire Retirement Board. Mr. Harry wanted to confirm that Police and Fire members listed on the agenda on receive pension based upon only 25 years of service credits. Mr. Harry commented that links to some of the approved benutes posted onethe not operating properly. Mr. Harry requested that draft minutes System website. 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: 327. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of October 2014 amounted to $2,288,183.61. Total retirement checks printed for the P&F System: 701. Total retirement checks printed for both systems: 1610. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting November 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Oleson and supported by Trustee Wood to approve the following applications for Regular Age and Service Retirements: Trent M. Atkins, Fire Department, 25 years of service credits, age 45, effective November 15, 2014. (w/the purchase of 9 months of universal service credits) Robert Hecksel, Fire Department, 25 years, 1 month of service credits, age 48, effective December 22, 2014 Michael S. Marczynski, Fire Department, 25 years, 1 month of service credits, age 54, effective December 23, 2014 Jeffrey D. Hanna, Fire Department, 25 years, 1 month of service credits, age 45, effective December 26, 2014. John M. Holly, Fire Department, 25 years, 1 month of service credits, age 48, effective December 30, 2014. Adopted by the following vote: 6 — 0. Karen Williams reported that a request for duty disability had been received from Applicant 2014-P1118. Trustee St. Aubin referred to the disability subcommittee. The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet on Applicant 2014-P1118. The Police and Fire Retirement Board recessed at 8:38 a.m The Police and Fire Retirement Board was called back to order at 8:40 a.m. Trustee Hecksel reported that the disability subcommittee had met and recommended that Applicant 2014-P1118 continue with the disability application process and be referred to the Medical Director. It was moved by Trustee Hecksel and supported by Trustee Kraus to have Applicant 2014-P1118 proceed with the disability application process and be referred to the Medical Director. Adopted by the following vote: 6 — 0. There were no requests for non-duty disability retirement. There were no requests for Refunds of Accumulated contributions. Regular Meeting November 20, 2014 Council Conference Room Tuesday, 8:30 a.m. loth Floor, City Hall Lansing, MI Page Three Trustee St. Aubin notified the Police and Fire Retirement Board that Trustee Tom Fabus would be out of town and not able to attend the Board meeting. Trustee Fabus requested to be excused. It was moved by Trustee Oleson and supported by Trustee Wood to excuse Trustee St. Aubin from the November Police and Fire Retirement Board meeting. Adopted by the following vote: 6 - 0 Karen Williams reported that Tegrit has completed work on the Calculator Engine technical specifications. Tegrit is nearing completion of the process module that would include the payroll interface, actuarial extract, exclusion letters, interest calculation and refunds of accumulated contribution. The Retirement Office will moved toward the last phase of the project that will include workflows, reports and administration. Attorney Ken Lane reported that Tegrit requested the use of the Police and Fire Retirement Board's name and logo for its promotional material. Attorney Lane reported that he reviewed the request with the City Attorney's Office and the City logo could be used with permission. Trustee St. Aubin received the request via email and notified the Police and Fire Retirement Board for their input. Trustee Wood expressed concern that the project has not been completed and that the request should wait. Trustee Benson added that Tegrit should only have use of the Police and Fire Retirement Board's name and logo for the duration of the contract. Attorney Lane indicated that Tegrit would need to Board's consent to use its name and logo. He also noted that the Board could withdraw its consent It was moved by Trustee Hecksel and supported by Trustee Wood to wait until completion of the project before consent is given to use the Police and Fire Retirement Board name and logo. Adopted by the following vote: 6 — 0 Attorney Ken Lane will notify Tegrit of the Police and Fire Retirement Board's decision. Regular Meeting November 20, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee St. Aubin provided an oral report of the NCPERS Public Safety Conference. Trustee St. Aubn included workshops that include 2015 Economic Outlook, the Affordable Health Care Act, pension funding and the Detroit bankruptcy. Trustee St. Aubin reported that the conference was well-organized and informative. Trustee Oleson concurred that the conference was well-organized and was impressed with the availability of the presenters. Trustee Oleson also discussed the Detroit bankruptcy workshop. Trustee Oleson noted that there was not a diversity of opinions. Most of the panel was made up of City of Detroit trustees. Trustee Kraus attended NCPERS Conference workshop that included investment types, health care and Medicare. Trustee Kraus discussed that members should preparing from Medicare earlier than 65. Trustee Kraus noted that other retirement systems commended her for attending the conference. Trustee Kraus noted that not many members from municipalities' administration were in attendance. Trustee Kraus discussed the workshop regarding fully funded plans and the Detroit bankruptcy. Trustee Benson was impressed with the conference, its organization and the presentation. He attended all of the workshops and thought that it was a good learning experience. Trustee Hecksel concurred that the NCPERS Conference was an informative meeting. He appreciated the networking opportunity and sharing knowledge with other members. Trustee Hecksel also discussed the Detroit bankruptcy workshop. He also felt that there was no a wide diversity of opinion. Trustee Wood reported that the Special Projects Committee had met and reviewed the Police and Fire Retirement Ordinance amendment that included the provisions of the Fire contract. Trustee Wood recommended support of Police and Fire Retirement Ordinance. Trustee Wood requested that Ordinance is forwarded to City Council with a letter of support. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Police and Fire Retirement Ordinance and send a letter of support to City Council from the Board. Adopted by the following vote: 6 - 0 Attorney Ken Lane reported that in 2008 the retirement systems applied for an independent federal employer identification numbers. Attorney Lane has been using those numbers on investment contracts. Retirees receive their benefits under the City of Lansing federal employer identification number and it has been determined with the assistance of administration that using the independent federal numbers can be problematic for retirees filing taxes. The City Attorney researched the issue and determined that there was no legal reason for separate federal employer identification numbers for the retirement systems. The City Attorney that the retirement systems could return to using the City of Lansing federal employer identification number. Attorney Lane stated that with the assistance to Asset Consulting Group, a letter has been drafted to inform investment managers. Attorney Lane reported that Public 314 requires that the City of Lansing retirement systems create an annual budget. Attorney Lane stated that he would provide a draft budget at the next meeting. Attorney Lane reported that he distributed a letter from Robbins, Gellar, and their request to come to the Joint Meeting. At that time, the Police and Fire Retirement Board declined the request. Robbins Gellar has contacted individual trustees via email requesting if they could come address the Retirement Boards at the Joint meeting. Trustee St. Aubin responded to the email that the Retirement Board had no questions and no need for the law firm to attend the November Joint meeting. The retirement board noted if they did come to the meeting, they could speak during public comment. Karen Williams reported that the Finance Director, Angela Bennett has provided a memo notifying the Police and Fire Retirement System Board of the 2014 pension contribution. Ms. Angela Bennett stated that $10,700,000 was contributed as of November 3, 2014. Ms. Bennett informed the Police and Fires Retirement System Board that once the actuarial valuation has been finalized and accepted by trustees, the remaining balance of $300,000 will be contributed. It was moved by Trustee Wood and supported by Trustee Hecksel to accept the City of Lansing 2014 Police and Fire pension contribution. Adopted by the following vote: 5 — 0 Karen Williams updated the Police and Fire Retirement Board regarding the Fire Trustee Election. The Retirement Office has received one nominating petition. The deadline for turning in completed petition would be November 24, 2014. Ms. Williams distributed the 2015 Schedule of Board Meeting dates for review and approval. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Lane indicated that the agreement with the securities monitoring firm stated that upon termination, the Board must receive a letter indicating the all portfolio information for the Police and Fire Retirement System had been destroyed. The Police and Fire Retirement System discussed and declined Robbins Geller Rudman & Dowd request to attend the November Joint Board meeting. Attorney Lane reported to the Employees Retirement System Board that Ms. Angela Bennett received a request from the Lansing financial health team working with a group of Michigan State University to review actuarial valuations from prior year. Ms. Bennett contacted legal counsel to review the request. Attorney Lane and Ms. Bennett met with the students and informed them that only the public report valuations would be made available. All of the reports are public records. Trustee Wood suggested that the Police and Fire Retirement Board make a statement to the Lansing Financial Health Team. Trustee Wood expressed that the Police and Fire Retirement Board are responsible for the contribution and will make decisions on what is best for retirees. Attorney Lane opined that the Police and Fire Retirement Board has Boomershine Consulting Group as its actuary and would not be bound by any report by the student group. Attorney Lane reported that he contacted both retirement board chairpersons regarding the request. Ms. Bennett added that the students are working on a project that includes projections and reviewing trends. Ms. Bennett stated that the project is only for the semester and would not go into much depth. Trustee Benson also expressed concern regarding how the report would be published. Karen Williams submitted the Northern Trust Custodian Bank SAS 70 Report for review by the trustees per Police and Fire Retirement Board Policy. Ms. Williams reported that the Board generally accepts the report each year after legal and information technology review. Attorney Ken Lane stated that he will review the SAS 70 Report and provide his recommendation at the next meeting. The Police and Fire Retirement Board will also review the report and discuss at the next meeting. Trustee Oleson referred the SAS 70 report to pending. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Karen Williams reported that the 2015 annual membership dues for the following organizations: MAPERS, $100; NCPERS, $250; and IFEBP, $835 (split between ERS and Police and Fire Retirement Boards) It was moved by Trustee Kraus and supported by Trustee Benson to approve the annual membership dues for 2015 and pay the fees from the Board's administrative account. Adopted by the following vote: 6-0 Karen Williams reviewed the Police and Fire Retirement Board election rules. Trustee Hecksel's last meeting would be December 18, 2014, before his retirement. Ms. Williams provided and discussed a posting for Fire Trustee Election with rules, and dates for election. Trustee Oleson moved the Asset Consulting Group Investment materials to pending until they can be reviewed by trustees and discussed at the November Joint meeting. Attorney Lane reported that Asset Consulting Group (ACG) provided a recommendation for the Northern Trust Securities Lending account change. ACG selected Core Plus and Attorney Lane has reviewed the documents for Board approval. Mr. Gregory Stump, Boomershine Consulting Group provided an overview of the Police and Fire Retirement System Actuarial Valuation as of December 31, 2013. Mr. Stump discussed the current status of the system, reviewing the plan population and the investment experience for 2013. Mr. Stump discussed the unfunded actuarial liability, assets, and city contribution. Mr. Stump recommended that Police and Fire Retirement Board implement changes to the investment return assumption to 7.5% with a 3.0% inflation assumption and re-set the asset smoothing strategy to recognize pre-2013 gains. Trustee Hecksel inquired to Mr. Stump regarding the impact of the changes on the city contributions. Mr. Stump explained that the contribution would increase but at a more gradual rate with the asset smoothing strategy. Regular Meeting October 21, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Trustee Wood inquired to Mr. Stump what the contributions would be if the investment and interest rate assumptions are not adopted. Ms. Bennett reviewed the valuation numbers and provided four potential rate assumption change scenarios and its impact on the city's contribution and budget. Ms. Bennett stated that the Police and Fire Retirement contribution was budgeted at $11.3 million. Ms. Bennett suggested staging the changes to either the 7.7% with a 3.2% inflation assumption or the 7.6% with 3.1% inflation rate assumption without the asset smoothing. Ms. Bennett recommended no asset smoothing because of concerns for the funding status and impact to retirement systems. Trustee Kraus discussed an incremental change to the investment and inflation assumptions instead of moving directly to the 7.5% with 3.0% inflation rate assumption. Trustee Fabus inquired if an incremental change would be harmful to system. Trustee Fabus expressed that his primary concern is the impact of the changes with the Police and Fire Retirement System. Mr. Greg Stump indicated that an incremental change would not be harmful, but contributions will still need to increase. Attorney Lane opined that each trustee is a fiduciary to the system. If trustee approve decisions that make it impossible for the city to make it contributions would not be good for the system. Attorney Lane stated that the Police and Fire Retirement System could _adopt a higher rate of investment assumption and inflation assumption than recommended by Boomershine Consulting Group. The Police and Fire Retirement System could re-visit changes to the assumption rates. It was moved by Trustee Hecksel and supported by Trustee Wood to adopt the investment rate of assumption at 7.5% with 3.0% inflation rate assumption with the asset re-set the smoothing for the valuation of December 31, 2013. Trustee Wood made a friendly amendment that was accepted by Trustee Hecksel to adopt an investment rate of assumption at 7.6% with 3.1% inflation rate assumption with the re-set of the smoothing strategy. Angela Bennett stated that she looked at retirement contribution as a whole for both board together. Ms. Bennett stated that $21.2 million was budgeted for both systems. Ms. Bennett stated that if the Employees Retirement System also adopts the 7.5% with 3.0% inflation rate of assumption, the increase in contribution would further increase the city budget. Trustee Oleson stated that he was more comfortable with the 7.6% with 3.1% inflation rate, and asked for Mr. Stump's opinion. Mr. Gregory Stump stated that spread is the same and the assumption rates at 7.6% with 3.1% is more conservative than the current assumption. Ms. Stump would support the amendment. Adopted by the following vote: 6-0 Mr. Stump reviewed the administrative tables that detail factors for optional forms of benefit. Mr. Stump reviewed that the factors for optional forms of benefit. He recommended that current tables better aligned with the updated mortality tables. Mr. Stump stated that the impact of factor will provide a slightly higher benefit for future retirees who are affected. Mr. Stump noted that there would be no direct impact on valuation. Attorney Ken Lane explained that the chairperson inquired if he could approve new factors for the Police and Fire Retirement Board to assist the Tegrit project. The chairperson sent notification to trustees regarding the change. It was moved by Trustee Wood and supported by Trustee Hecksel to adopt the 50% Joint and Survivor (non-spousal) factors, retroactive to the chairperson's approval. Adopted by the following vote: 6 — 0. Trustee Oleson expressed concern that Police and Fire Retirement Board did not have more time to review the recommendations and asked if the valuation information can be provided sooner. Ms. Bennett explained that some of the data was delayed due to staffing levels. Mr. Stump reviewed the funding and contribution outlook. Mr. Stump will send a funding policy for the Board's review. Karen Williams reviewed the Monthly. Investment Report and the Securities Lending Report for the period ending September 30, 2014. It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 10:41 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM C� November 18, 2014 Regular Meeting CIO Council Conference Room Tuesday, 8:30 a.m. � r •+ � C-1) M 10th Floor, City Hall ch7 C') C' d Lansing, MI The Board was called to order at 8:33 a.m. Present: Trustees Benson, Hecksel, Kraus, Oleson, St. Aubin, Wood—6. Absent: Trustee Bernero, Fabus Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Hecksel and supported by Trustee Benson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of October 21, 2014. Adopted by the following vote: 6 — 0 Mr. Steve Harry had three comments for the Police and Fire Retirement Board. Mr. Harry wanted to confirm that Police and Fire members listed on the agenda to receive pensions were based upon only 25 years of service credits. Mr. Harry commented that links to some of the approved minutes were not operating properly. Mr. Harry requested that draft minutes be posted on the Retirement System website. 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: 327. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of October 2014 amounted to $2,288,183.61. Total retirement checks printed for the P&F System: 701. Total retirement checks printed for both systems: 1610. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting November 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Oleson and supported by Trustee Wood to approve the following applications for Regular Age and Service Retirements: Trent M. Atkins, Fire Department, 25 years of service credits, age 45, effective November 15, 2014. (w/the purchase of 9 months of universal service credits) Robert Hecksel, Fire Department, 25 years, 1 month of service credits, age 48, effective December 22, 2014 Michael S. Marczynski, Fire Department, 25 years, 1 month of service credits, age 54, effective December 23, 2014 Jeffrey D. Hanna, Fire Department, 25 years, 1 month of service credits, age 45, effective December 26, 2014. John M. Holly, Fire Department, 25 years, 1 month of service credits, age 48, effective December 30, 2014. Adopted by the following vote: 6 —0. Karen Williams reported that a request for duty disability had been received from Applicant 2014-P1118. Trustee St. Aubin referred Applicant 2014-P1118 to the disability subcommittee. The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet on Applicant 2014-P1118. The Police and Fire Retirement Board recessed at 8:38 a.m. The Police and Fire Retirement Board were called back to order at 8:40 a.m. Trustee Hecksel reported that the disability subcommittee had met and recommended that Applicant 2014-P1118 continue with the disability application process and be referred to the Medical Director. It was moved by Trustee Hecksel and supported by Trustee Kraus to have Applicant 2014-P1118 proceed with the disability application process and be referred to the Medical Director. Adopted by the following vote: 6 — 0. There were no requests for non-duty disability retirement. Regular Meeting November 20, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three There were no requests for Refunds of Accumulated contributions. Trustee St. Aubin notified the Police and Fire Retirement Board that Trustee Thomas Fabus would be out of town and not able to attend the Board meeting. Trustee Fabus requested to be excused. It was moved by Trustee Oleson and supported by Trustee Wood to excuse Trustee Fabus from the November Police and Fire Retirement Board meeting. Adopted by the following vote: 6 - 0 Karen Williams reported that Tegrit has completed work on the Calculator Engine technical specifications. Tegrit is nearing completion of the process module that would include the payroll interface, actuarial extract, exclusion letters, interest calculation and refunds of accumulated contribution. The Retirement Office will move toward the last phase of the project that will include workflows, reports and administration. Attorney Ken Lane reported that Tegrit requested the use of the Police and Fire Retirement Board's name and logo for its promotional material. Attorney Lane reported that he reviewed the request with the City Attorney's Office and the City logo could be used with permission. Trustee St. Aubin received the request via email and notified the Police and Fire Retirement Board for their input. Trustee Wood expressed concern that the project had not been completed and that the request should wait. Trustee Benson added that Tegrit should only have use of the Police and Fire Retirement Board's name and logo for the duration of the contract. Attorney Lane indicated that Tegrit would need the Police and Fire Retirement Board's consent to use its name and logo. He also noted that the Board could withdraw its consent It was moved by Trustee Hecksel and supported by Trustee Wood to wait until completion of the project before consent is given to Tegrit to use the Police and Fire Retirement Board name and logo. Adopted by the following vote: 6 — 0 Regular Meeting November 20, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Ken Lane will notify Tegrit of the Police and Fire Retirement Board's decision. Trustee St. Aubin provided an oral report of the NCPERS Public Safety Conference. Trustee St. Aubin included workshops that include 2015 Economic Outlook, the Affordable Health Care Act, pension funding and the Detroit bankruptcy. Trustee St. Aubin reported that the conference was well-organized and informative. Trustee Oleson concurred that the conference was well-organized and was impressed with the availability of the presenters. Trustee Oleson also discussed the Detroit bankruptcy workshop. Trustee Oleson noted that there was not a diversity of opinions. Most of the panel was made up of City of Detroit trustees. Trustee Kraus attended NCPERS Conference workshop that included investment types, health care and Medicare. Trustee Kraus discussed that members should be preparing for Medicare earlier than 65. Trustee Kraus noted that other retirement systems commended her for attending the conference. Trustee Kraus noted that not many administration members from municipalities' administration were in attendance. Trustee Kraus discussed the workshop regarding fully funded plans and the Detroit bankruptcy. Trustee Benson was impressed with the conference, its organization and the presentation. He attended all of the workshops and thought that it was a good learning experience. Trustee Hecksel concurred that the NCPERS Conference was a great experience and informative meeting. He appreciated the networking opportunity and sharing institutional knowledge with other members. Trustee Hecksel also discussed the Detroit bankruptcy workshop. He also felt that there was not a wide diversity of opinion and wanted to hear from other on the panel, other than Detroit trustees.. Trustee Wood reported that the Special Projects subcommittee had met and reviewed the Police and Fire Retirement Ordinance amendment that included the provisions of the Fire contract. The subcommittee recommended that Draft #4 be created with the amendments by the Police and Fire subcommittee and include a correction to the retirement options that were numbered incorrectly. She recommended support of Police and Fire Retirement Ordinance. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Police and Fire Retirement Ordinance Draft#4. Adopted by the following vote: 6 - 0 Regular Meeting November 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Wood also requested that the Police and Fire Retirement Board provide a letter of support with of the Revised Ordinance to City Council. Attorney Ken Lane reported that in 2008 the retirement systems applied for independent federal employer identification numbers. Attorney Lane has been using those numbers on investment contracts. Retirees receive their benefits under the City of Lansing federal employer identification number and it has been determined with the assistance of administration that using the independent federal numbers can be problematic for retirees filing taxes. The City Attorney researched the issue and determined that there was no legal reason for separate federal employer identification numbers for the retirement systems. The City Attorney opined that the retirement systems could return to using the City of Lansing federal employer identification number. Attorney Lane stated that with the assistance of Asset Consulting Group, a letter has been drafted to inform investment managers. Ms. Angela Bennett recommended that Internal Revenue Service be contacted to rescind the separate retirement board federal employer identification number. Attorney Lane reported that Public 314 requires that the City of Lansing retirement systems create an annual budget. Attorney Lane stated that he would provide a draft budget at the next meeting. Attorney Lane reported that he distributed a letter from Robbins, Gellar, and their request to come to the Joint Meeting. At that time, the Police and Fire Retirement Board declined the request. Robbins Gellar has contacted individual trustees via email requesting if they could come address the Retirement Boards at the Joint meeting. Trustee St. Aubin responded to the email that the Retirement Board had no questions and no need for the law firm to attend the November Joint meeting. The retirement board noted if they did come to the meeting, they could speak during public comment. Trustee Hecksel inquired if the Retirement Board should consider replacing Robbins, Gellar. Trustee St. Aubin stated that the only lawsuit from the securities monitoring has been derivative, corporate governance issues. The Retirement Board has expressed their disinterest in these types of legal action. Attorney Ken Lane had a conference call with Robbins, Gellar. On the conference call, the law firm agreed that one firm is appropriate. Regular Meeting November 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six The Finance Director, Angela Bennett provided a memo notifying the Police and Fire Retirement System Board of the 2014 pension contribution. Ms. Angela Bennett stated that $10,700,000 was contributed as of November 3, 2014. Ms. Bennett informed the Police and Fires Retirement System Board that once the actuarial valuation has been finalized and accepted by trustees, the remaining balance of$351,175 will be contributed. It was moved by Trustee Wood and supported by Trustee Hecksel to accept the City of Lansing 2014 Police and Fire pension contribution. Adopted by the following vote: 6 — 0 Karen Williams updated the Police and Fire Retirement Board regarding the Fire Trustee Election. The Retirement Office has received one nominating petition. The deadline for turning in completed petition would be November 24, 2014. Ms. Williams distributed the 2015 Schedule of Board Meeting dates. Karen Williams distributed the Police and Fire Retirement System Actuarial Valuation as of December 31, 2013. Ms. Williams indicated that Boomershine also provided a funding policy for the Board's review. Trustee Hecksel inquired about the different percentages for the funded ratio listed in the actuarial valuation. Ms. Bennett explained that the difference of the percentages was due to the Police and Fire Retirement Board smoothing of assets. The Retirement Board discussed the change to a closed amortization and assumed rate of return and its impact on the funded ratio. Ms. Angela Bennett reviewed a list of recommendation for the actuarial valuation that included amendments to the assumptions and methods. Ms. Bennett also had questions about the administrative expenses listed as zero. Ms. Bennett also recommended language explaining the change of the interest rate assumption. Ms. Bennett requested that the actuary include the schedule of employer contributions and schedule of funding progress in both the valuations and the new GASB reports for transparency and historical reference. It was moved by Trustee Benson and supported by Trustee Kraus to include the GASB schedule reports in both the actuarial valuation and the GASB reports. Trustee Oleson inquired about the Board discussion regarding the GASB reports Regular Meeting November 18, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Seven Attorney Lane explained that he contacted Mr. Greg Stump at Boomershine Consulting Group and that the actuary was obligated to return the valuation in compliance with GASB. The Board did not approve a fee for separate reports Angela Bennett explained that GASB had some requirements that are not needed within the actuarial valuation. Adopted by the following vote: 6 — 0. It was moved by Trustee Hecksel and supported by Trustee Benson to table the discussion and contact Boomershine Consulting Group with a list of modifications and to clarify issues raised by the Police and Fire Retirement Board prior to the adoption of the actuarial report. Adopted by the following vote: 6 —0 Trustee St. Aubin will contact the actuary. It was moved by Trustee Wood and supported by Trustee Oleson to designate the document received from Boomershine Consulting Group as a draft. Adopted by the following vote: 6 - 0 Attorney Ken Lane reviewed the funding policy and it complies with Public Act 314. Attorney Lane notified Mr. Greg Stump with suggested amendments to the funding policy to clarify language. Trustee St. Aubin added item F to the agenda regarding NCPERS meal expenses. Trustee St. Aubin explained that the NCPERS Conference was held in New Orleans, Louisiana where the cost of living is higher. The Retirement Board discussed that it has approved in the past higher reimbursement limits for conferences in high cost areas. It was moved by Trustee Kraus and supported by Trustee Benson to approve increased meal reimbursement limits for the NCPERS Conference. Adopted by the following vote: 6 — 0 Karen Williams submitted the Northern Trust Custodian Bank SAS 70 Report for review by the trustees per Police and Fire Board Policy at the last meeting. Ms. Williams reported that the Board generally accepts the report each year after legal and information technology review. Attorney Lane indicated that he reviewed and informed the Police and Fire Retirement Board that report complied with Public Act 314 and that the report was satisfactory. Attorney Lane noted that the information technology information is the same as last year. It was moved by Trustee Wood and supported by Trustee Benson to accept the Northern Trust Custodian Bank SAS 70/Custody and Fund services SOC 1 Report. Adopted by the following vote: 6 — 0 Karen Williams reviewed the City of Lansing Quarterly Expense Report and the Securities Lending Report for the period ending September 30, 2014. Trustee Benson commended the Police and Fire Retirement Board for creating the Quarterly Expense Report. Trustee St. Aubin commented that in 2005, a former finance director changed the amortization rate and how it negatively impacted the funded ratio. Trustee St. Aubin commended the Police and Fire Retirement Board for implementing changes in the amortization that will improve the funded ratio in the future. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 6 - 0 The meeting adjourned at 9:56 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM and POLICE & FIRE RETIREMENT SYSTEM ' MEETING MINUTES C-; Ul Fri Joint Meeting November 20, 209 — Council Conference Room Thursday, 9:15 a.r� - M 10th Floor City Hall r- W CD Lansing, MI cn The meeting was called to order at 9:20 a.m. A quorum of the Employees' Retirement System Board was present. Trustees present: (ERS), Boles, Dedic, Munroe, D. Parker, M. Parker—5. (Police & Fire), Oleson, Wood — 2. Others present: Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Haley Rives, Asset Consulting Group. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 3rd quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending September 30, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Ms. Rives reviewed the October monthly financial report Ms. Rives discussed MD Sass proposed portfolio changes due to the impact of a rise in U.S interest rates on the fixed income portfolios of the Employees' Retirement System plan and the Police and Fire Retirement Plan. The MD Sass investment management recommended moving the portfolio to a shorter duration strategy from the current core strategy. Asset Consulting Group distributed a memo recommending the change. It was moved by Trustee Mark Parker and supported by Trustee Carol Munroe to approve the proposed changes suggested by MD Sass and recommended by the Asset Consulting Group memo. Adopted by the following vote: 5-0 Ms. Haley Rives discussed the Investment Policy Statement proposed revisions. Ms. Rives noted the primary change was a shift in the stated benchmark from the Barclays Capital US Aggregate Index to the Barclays Intermediate Government Bond Index. It was moved by Trustee Mark Parker and Trustee Dennis Parker to accept the proposed amendments to the Employees' Retirement System Investment Policy Statement as recommended by Asset Consulting Group and contingent upon legal review. Adopted by the following vote: 5 — 0 Ms. Haley Rives reviewed changes to the Northern Trust Securities Lending Collateral Pool. The securities lending cash collateral pool in which the City of Lansing Employees' Retirement System currently participates will no longer be offered. Northern Trust has offered two options for the plan. Asset Consulting Group reviewed both options and provided a memo recommending the SL Core Short Term Investment Fund. Attorney Lane reported that Asset Consulting Group (ACG) provided a recommendation for the Northern Trust Securities Lending account change. ACG selected Core Plus and Attorney Lane has reviewed the documents for Board approval. It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to approve the SL Core Short Term Investment Fund as the new vehicle for the Northern Trust Securities Lending Collateral Pool, as recommended by Asset Consulting Group. Adopted by the following vote: 5 — 0 Ms. Rives discussed modifying the Equity Long/Short and consider fully funding the current allocation as well as potentially increased the target allocation from 5% to 10% of the total Plan's assets for the Police and Fire Retirement System. Ms. Rives also discussed recommendations to the Employees Retirement System to consider adding 5 of its portfolio to implement an equity long/short program. There were no public comments. The meeting adjourned at 10:34 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM and POLICE & FIRE RETIREMENT SYSTEM MEETING MINUTES Joint Meeting November 20, 2014 Council Conference Room Thursday, 9:15 a.m.. ', 10th Floor City Hall Lansing, MI " r C i The meeting was called to order at 9:20 a.m. r rl A quorum of the Employees' Retirement System Board was present. r.; ,, n� Trustees present: (ERS), Boles, Dedic, Munroe, D. Parker, M. Parker—5. (Police & Fire), Oleson, Wood — 2. Others present: Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Haley Rives, Asset Consulting Group. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 3rd quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending September 30, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Ms. Rives reviewed the October monthly financial report Ms. Rives discussed MD Sass proposed portfolio changes due to the impact of a rise in U.S interest rates on the fixed income portfolios of the Employees' Retirement System plan and the Police and Fire Retirement Plan. The MD Sass investment management recommended moving the portfolio to a shorter duration strategy from the current core strategy. Asset Consulting Group distributed a memo recommending the change. It was moved by Trustee Mark Parker and supported by Trustee Carol Munroe to approve the proposed changes suggested by MD Sass and recommended by the Asset Consulting Group memo. Adopted by the following vote: 5-0 Ms. Haley Rives discussed the Investment Policy Statement proposed revisions. Ms. Rives noted the primary change was a shift in the stated benchmark from the Barclays Capital US Aggregate Index to the Barclays Intermediate Government Bond Index. It was moved by Trustee Mark Parker and Trustee Dennis Parker to accept the proposed amendments to the Employees' Retirement System Investment Policy Statement as recommended by Asset Consulting Group and contingent upon legal review. Adopted by the following vote: 5 — 0 Ms. Haley Rives reviewed changes to the Northern Trust Securities Lending Collateral Pool. The securities lending cash collateral pool in which the City of Lansing Employees' Retirement System currently participates will no longer be offered. Northern Trust has offered two options for the plan. Asset Consulting Group reviewed both options and provided a memo recommending the SL Core Short Term Investment Fund. Attorney Lane reported that Asset Consulting Group (ACG) provided a recommendation for the Northern Trust Securities Lending account change. ACG selected Core Plus and Attorney Lane has reviewed the documents for Board approval. It was moved by Trustee Mark Parker and supported by Trustee Dennis Parker to approve the SL Core Short Term Investment Fund as the new vehicle for the Northern Trust Securities Lending Collateral Pool, as recommended by Asset Consulting Group. Adopted by the following vote: 5 — 0 Ms. Rives discussed modifying the Equity Long/Short and consider fully funding the current allocation as well as potentially increased the target allocation from 5% to 10% of the total Plan's assets for the Police and Fire Retirement System. Ms. Rives also discussed recommendations to the Employees Retirement System to consider adding 5 of its portfolio to implement an equity long/short program. There were no public comments. The meeting adjourned at 10:34 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING r- POLICE AND FIRE RETIREMENT SYSTEW: 0.) `q -7 Regular Meeting December 16, 2014 `1 � Council Conference Room Tuesday, 8:30 a.m. c; _ 10th Floor, City Hall M Lansing, MI C.;, C) 1 7j N The Board was called to order at 8:33 a.m. --i Present: Trustees Benson, Hecksel, Kraus, Oleson, St. Aubin, Wood—6. Absent: Trustee Bernero, Fabus Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Eric Wolhert, Fire Department. It was moved by Trustee Hecksel and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of November 18, 2014. Adopted by the following vote: 6 — 0 It was moved by Trustee Wood and supported by Trustee Oleson to approve the Official Minutes of the Employees Retirement System and the Police and Fire Retirement System Joint Board Meeting of November 20, 2014. Adopted by the following vote: 6 — 0. There were no public comments. Secretary's Report. 1 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 325. 1 death(s), Doris F. Grant, Fire, died 11/20/2014, age 91, spouse of Fire retiree; . Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of November 2014 amounted to $2,312,391.28. Total retirement checks printed for the P&F System: 705. Total retirement checks printed for both systems: 1617. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting December 16, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved Trustee Oleson and supported by Trustee Hecksel to approve the following applications for Regular Age and Service Retirement: Margaret Murphy, Fire Department, 25 years of service credits, age 48, effective December 26, 2014. Adopted by the following vote: 6 —0. Karen Williams reported that a request for duty disability had been received from Applicant 2014-P1216. Trustee St. Aubin referred the request of Applicant 2014-P1216 to the disability subcommittee. The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet on Applicant 2014-P1216. The Police and Fire Retirement Board recessed at 8:41 a.m. The Police and Fire Retirement Board was called back to order at 8:43 a.m. Karen Williams reported that the Retirement Office was waiting for medical records from the Human Resources Department for Applicant 2014-1118. Trustee Hecksel reported that the disability subcommittee had met and recommended that Applicant 2014-F1216 continue with the disability application process and be referred to the Medical Director. It was moved by Trustee Hecksel and supported by Trustee Fabus to have Applicant 2014-F1216 proceed with the disability application process and be referred to the Medical Director. Adopted by the following vote: 6 — 0. There were no requests for non-duty disability retirement. There were no requests for Refunds of Accumulated contributions. Trustee St. Aubin notified the Police and Fire Retirement Board that Trustee Ed Benson was in the hospital and not able to attend the Board meeting. Trustee Benson requested to be excused. Regular Meeting December 16, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse Trustee Benson from the December Police and Fire Retirement Board meeting. Adopted by the following vote: 6 - 0 Karen Williams reported that Tegrit provided a revised schedule for completion of the software project, August 2015. The Retirement Office has moved toward the last phase of the project that will include workflows, reports and administration. Attorney Ken Lane updated the Board that he contacted Tegrit regarding their request to use of the Police and Fire Retirement Board's name and logo for its promotional material. Attorney Lane informed Tegrit that the Board would reconsider the request once the project has been completed. Trustee St. Aubin added that delays were due to the data migration issues and the change in ownership and personnel on the project. The original completion date was June 2015. Attorney Lane distributed a draft of the projected annual budget for the Police and Fire Retirement System as required by Public 314. Attorney discussed the travel allotment and the footnote that members were under budget. The footnote also indicated that the Police and Fire Retirement budgeted allotment was less than the maximum amount in Public 314. Attorney Lane updated the Board regarding the discussed adjustment to the budget and Attorney Lane reported that he would contact the Retirement Office to review amounts for the software project. Attorney Lane will provide the updated budget for approval at next meeting. Attorney Lane updated the Board that the Police and Fire Retirement Ordinance Draft #4 had been reviewed by the City Attorney and was submitted to City Council. Trustee Wood indicated that City Council Ways and Means Committee had received the revised Ordinance and a public hearing had been held. The adoption of the revised Ordinance had been scheduled for approval. Karen Williams distributed a memo from the Secretary of the Board regarding the Fire Trustee Election. The Retirement Office has received one nominating petition from Mr. Eric Wohlfert at the deadline, November 24, 2014. The Police and Fire Retirement Board Election policy provides that if only one valid nominating petition is received, that nominee is declared elected to the position of trustee. Regular Meeting December 16, 2014 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 approve and certify the election of Mr. Eric Wohlfert as the Fire Trustee to be effective as of December 17, 2014. Trustee Hecksel requested his resignation be effective after the December meeting. Adopted by the following vote: 6 — 0 Karen Williams reported that Boomershine Consulting Group provided a revised actuarial valuation report based upon the recommendations from the Police and Fire Retirement Board and the GASB 67 report. Trustee Wood inquired if all of the items discussed by the Police and Fire Retirement Board were addressed. Angela Bennett stated that the zeros that were listed for administrative expenses was actually included in the adjustment amount. It was moved by Trustee Oleson and supported by Trustee Wood accept the Actuarial Valuation Report, contingent upon final review from the chairperson. Adopted by the following vote: 6- 0 The Police and Fire Retirement Board chairperson received an email from the Actuary requesting that data be provided to Boomershine Consulting Group at an earlier date. Attorney Ken Lane opined that providing the data earlier would allow a draft to be finalized and provide the Boards more time to review. Trustee Wood also inquired if there were amounts for members who received from the Police and Fire Retirement System. Trustee St. Aubin called Mr. Greg Stump of Boomershine Consulting Group. Mr. Stump stated that the amounts listed in the reports are the data that was received from the Finance Department. Ms. Bennett indicated that the amounts for refunds were included in the distributions to participants' number. The amount had been clarified with Boomershine through an email. Trustee Wood inquired what would be an appropriate time line for this information to get from the Finance Department to the Boomershine Consulting Group. Regular Meeting December 16, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Mr. Greg Stump indicated that April would be the best time for data to be submitted to the actuary to move up the timing of the actuary report. Trustee Wood requested a policy that would direct the Secretary of the Board to provide the actuarial data to Boomershine Consulting Group by April. Ms. Bennett suggested June as a better time, due to staff shortage and the availability of the financial data. Ms. Bennett was open to discussing a new time line for the submission of actuarial data. It was moved by Trustee Oleson and supported by Trustee Wood to adopt a policy to have the actuarial data provided to the actuary by April each year. Angela Bennett suggested that a draft be sent to the secretary, so that it could be reviewed before the Police and Fire Retirement Board's consideration. Ms. Bennett stated that some errors could be corrected beforehand to streamline the process. Trustee Wood preferred that the chair receive the information at the same time as the Secretary of the Board. Trustee St. Aubin stated that whenever he receives information from the actuary, he would distribute to the membership at that time. Trustee St. Aubin would like the extra time for entire board review and discussion. Adopted by the following vote: 6 — 0 Angela Bennett reviewed the GASB 67 supplemental report. The report details a change in GASB standards. Ms. Bennett explained how asset values are to be reported as June 30 of each year. Ms. Bennett explained how the GASB 67 was tied to the December 31 actuarial valuation. Ms. Bennett also discussed the assumed rate of return expectations for GASB. The report does not change the annual actuarial valuations. Attorney Ken Lane reported that Boomershine Consulting Group provided a funding policy at the last meeting for consideration. Attorney Lane reviewed the policy and it meets the requirements of Public Act 314. Attorney Lane had requested clarification regarding some of the funding language, "generations of taxpayers." Regular Meeting December 16, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six It was moved by Trustee Oleson and supported by Trustee Fabus adopt the Actuarial funding policy contingent upon language clarification suggested by legal counsel. Adopted by the following vote: 6 — 0 Karen Williams distributed the revised Investment Policy Statement as recommended by Asset Consulting Group. At the Joint meeting, Ms. Haley Rives noted the primary change was a shift in the stated benchmark from the Barclays Capital US Aggregate Index to the Barclays Intermediate Government Bond Index. The IPS will incorporate changes to the MD Sass Proposed Portfolio changes to shorten the bond duration. It was moved by Trustee Wood and Trustee Hecksel to accept the proposed amendments to the Police and Fire Retirement System Investment Policy Statement as recommended by Asset Consulting Group. Adopted by the following vote: 6 — 0 Ms. Williams distributed a memo from Asset Consulting Group that reviewed changes to the Northern Trust Securities Lending Collateral Pool. The securities lending cash collateral pool in which the City of Lansing Police and Fire Retirement System currently participates will no longer be offered. Northern Trust offered two options for the plan. Asset Consulting Group reviewed both options and provided a memo recommending the SL Core Short Term Investment Fund. Attorney Lane reported that Asset Consulting Group (ACG) provided a recommendation for the Northern Trust Securities Lending account change. ACG selected Core Plus and Attorney Lane has reviewed the documents for Board approval. It was moved by Trustee Hecksel and supported by Trustee Wood to approve the SL Core Short Term Investment Fund as the new vehicle for the Northern Trust Securities Lending Collateral Pool, as recommended by Asset Consulting Group. Adopted by the following vote: 6 — 0 Ms. Williams distributed a memo from Asset Consulting Group that discussed MD Sass proposed portfolio changes due to the impact of a rise in U.S interest rates on the fixed income portfolios of the Police and Fire Retirement Plan. The MD Sass investment management recommended moving the portfolio to a shorter duration strategy from the current core strategy. It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the proposed changes suggested by MD Sass to shorten the bond duration strategy, and recommended by the Asset Consulting Group memo. Adopted by the following vote: 6-0 Asset Consulting Group provided information to the Board that discussed modifying the Equity Long/Short and consider fully funding the current allocation as well as potentially increased the target allocation from 5% to 10% of the total Plan's assets for the Police and Fire Retirement System. Asset Consulting Group also suggested the potential implementation options of an additional allocation to commodities. It was moved by Trustee Wood and supported Trustee Hecksel to increase the target allocation to 10% for the Equity Long/Short. Adopted by the following vote: 6 - 0 Trustee Hecksel expressed his gratitude for his time on the Police and Fire Retirement Board. Trustee Hecksel stated that he had goals to increase transparency, improving the disability process and strengthening the financial portfolio with progressive investments. Trustee Hecksel stated that he accomplished his goals. Trustee Oleson on behalf of the Police and Fire Retirement Board presented Trustee Hecksel will a plaque to express their appreciation for his service as a Fire Department trustee. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending November 30, 2014. The meeting adjourned at 10:54 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St.Aubin, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:35 a.m. - Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wq:od— -; s= Absent: Trustee Bernero Others: Angela Bennett, Karen E. Williams, Finance Department; Atto.ney Kerr Lane, Clark Hill Law Office (representing the Law Department). r— q F'l It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of July 15, 2014. Adopted by the following vote: 7 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 333. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of July 2014 amounted to $2,256,268.55. Total retirement checks printed for the P&F System: 697. Total retirement checks printed for both systems: 1592. Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved Trustee Fabus and supported by Trustee Kraus to approve the following applications for Regular Age and Service Retirements: Ronald L. Seyka, Police Department, 25 years of service credit, age 49, effective September 13, 2014. David Dahlke, Police Department, 25 years of service credit, age 50, effective September 20, 2014. Adopted by the following vote: 7 — 0. Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no requests for duty disability. Karen Williams reported that the medical report for Applicant #2014-F0513 was received and forwarded to the disability subcommittee for review The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet to discuss the medical report of Applicant #2014-F0513. The Board recessed at 8:38. The Board resumed at 8:42. Trustee Hecksel reported that the disability subcommittee had met and recommended concurrence with the medical director's report to approve the non- duty disability request. It was moved by Trustee Hecksel and supported by Trustee Kraus to concur with the medical director's report and approve the non-duty disability request of Applicant #2014-F0513. Adopted by the following vote: 7 -0 There were no requests for refund of accumulated contributions. Ms. Williams updated the Police and Fire Retirement Board regarding the Arrivos software project. The Tegrit team continued to work on the retirement calculators. Tegrit has started the transition to a new project manager. Tegrit has started development of the Arrivos Calculators and continues work with the PBI (death audit vendor) to automate the process. Trustee St. Aubin stated he had Attorney Ken Lane review the current contract regarding the sale. Attorney Ken Lane reported that there was an assignment clause in the contract. The City of Lansing Retirement Boards needed to sign a consent form to assign the contract to the new company, Tegrit Software Ventures. The contract provisions and protections will remain the same. Ms. Williams announced the Fall MAPERS Conference would be held September 14 -16 in Acme, Michigan. Ms. Williams reported that confirmation for Fall MAPERS should have been received for the conference for those members attending. Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Williams also announced the NCPERS Public Safety Conference October 26 - 29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Ken Lane updated the Employees Retirement System Board regarding Boomershine Consulting Group request for additional fees for GASB standard reports. Attorney Lane opined last month that the ERS Board was not required to pay additional fees for actuarial valuation to comply with GASB standard. Attorney Ken Lane contacted Greg Stump who explained that it is an additional report that would supplement the annual valuation. The additional report would outline the requirements and the steps taken to comply with the new GASB standards. Trustee Kraus requested that the discussion regarding the additional GASB report be placed on the Joint Board retirement meeting agenda. Angela Bennett suggested that she contact Greg Stump for further clarification to see if the additional report for GASB 67/68 is necessary. Attorney Lane reported that his office is in the process of scanning the trustee handbook for an electronic version. Attorney Lane reported that the Police and Fire Retirement Ordinance has been completed by City Attorney's Office and is under review by Human Resources. After Human Resources review, the draft will go City Council and then will be referred to the Retirement Board. Trustee Wood inquired about a time line for this process and expressed concern that the Ordinance would not be before the Retirement Board within 90 days. Attorney Lane believed that the Ordinance should be back to the Retirement Board at its next meeting. Karen Williams reviewed the Quarterly Expense Report for the period ending June 30, 2014. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 7 - 0 The meeting adjourned at 9:02 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System