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Home My WebLink About2015 Police and FIre Retirement System minutes FINAL OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting January 20, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI N The Board was called to order at 8:32 a.m. r-3 Present: Trustees Fabus, Kraus, Oleson, Wohlfert, Wood— 5. Absent: Trustee Bernero, St. Aubin r� Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clar)CHilhaw Office (representing the Law Department). - "' It was moved by Trustee Kraus and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of December 16, 2014. Adopted by the following vote: 5 — 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. 3 death(s), Henry S. Loszewski, Fire, died 11/13/2014, age 88, no surviving beneficiary; Wayne B. Castle, Police, died 12/19/2014, age 82, no surviving beneficiary; Jack Fraser, Police, died 1/8/2015, age 88, 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 December 2014 amounted to $2,315,321.44. Total retirement checks printed for the P&F System: 705. Total retirement checks printed for both systems: 1615. Domestic relations order received: 0 Domestic relations orders pending: 0. 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 Retirement: Loren DeYoung, Police Department, 25 years of service credits, age 52, effective January 16, 2015. Adopted by the following vote: 5—0. Regular Meeting January 20, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported that the Retirement Office has forwarded the medical and personal records for Applicant 2014-P 1118 to Dr. Roth for scheduling. Karen Williams updated the Police and Fire Retirement Board that a letter of request for documents had been mailed to Applicant #2014F1216. The Retirement Office is waiting for requested material. There were no requests for non-duty disability retirement. Karen Williams reported that the Retirement Office has received a request for Refund of Accumulated Contribution from Ms. Catrina Cook, Police Nonsupervisory, vested, in the amount of $86,478.70. Ms. Williams did discuss the implication with Ms. Cook. Ms. Cook submitted a notarized withdrawal forms that indicated the member would no longer be eligible for a pension. Attorney Lane opined that the withdrawal form does indicate that the member forfeits eligibility for a pension. It was moved by Trustee Kraus and supported by Trustee Wood to accept the request for refund of accumulated contributions for Ms. Catrina Cook in the amount of$86,478.70. Adopted by the following vote: 5-0 Karen Williams notified the Board that Trustee St. Aubin would not be able to attend the January meeting and requested to be excused. It was moved by Trustee Wohlfert and supported by Trustee Fabus to excuse Trustee St. Aubin from the January meeting of the Police and Fire Retirement Board. Adopted by the following vote: 5 -0 Trustee Oleson requested permission of the Police and Fire Retirement Board at attend the 2015 NCPERS Annual Conference in May and Public Safety Conferences in the Fall. It was moved by Trustee Kraus and supported by Trustee Wood to approve the request of Trustee Oleson to attend the 2015 NCPERS Public Safety Conference and grant permission to any trustee who wished to attend. Adopted by the following vote: 5 — 0 Regular Meeting January 20, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams updated the Police and Fire Retirement System Board regarding Tegrit Pension Software project. Ms. Williams reported that a key resource had left Tegrit and the company and indicated one of their top developers would take over beginning in February. Ms. Williams Parker indicated that the timeline may need to be adjusted and that the Retirement Office continues to work with Tegrit on phases 3,4 5 that include software for the retirement calculator , processes and workflow phases of the project. Attorney Lane distributed and reviewed the annual budget for the Police and Fire Retirement System as required by Public 314. It was moved by Trustee Kraus and supported by Trustee Wohlfert to approve the 2015 Annual Budget for the Police and Fire Retirement System. Adopted by the following vote: 5 — 0 Attorney Lane distributed the updated Investment Policy approved by the Police and Fire Retirement Board. Attorney Lane stated that he will provide a copy of the actuarial funding policy to the Board, after the updated version has been received by Boomershine Consulting Group and signed.by the chairperson. Trustee Fabus inquired about the Final Average Compensation calculation. Trustee Fabus asked if there was a time limit for the compensation used in the Final Average Compensation. Karen Williams has indicated the past practice used the highest two consecutive twenty four months within the member's ten years of employment. Ms. Williams indicated that the specific time frame is not addressed in the Ordinance or contracts. Attorney Ken Lane stated if the Retirement Ordinance or contracts are silent on the time frame, past practice can be used. Attorney Lane will review the Ordinance and contracts and provide recommendations for a policy at the next meeting. Trustee Wood provided an update on the status of the Police and Fire Retirement Ordinance. Trustee Oleson opened nominations for the election of chairperson and vice chairperson Trustee "food nominated Brad St. Aubin as chairperson and Robert Oleson as vice chairperson. Regular Meeting January 20, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four There were no further nominations. It was moved by Trustee Wood and supported by Trustee Fabus to elect Brad St. Aubin as chairperson and Robert Oleson as vice chairperson. Adopted by the following vote: 5 - 0 The vice chair recommended the 2015 Police and Fire Retirement System Subcommittee members: Disability Committee - Fabus, Kraus, St. Aubin, Wohlfert Investment Committee - Kraus, Oleson, Wohlfert, Wood Education Committee - Fabus, Oleson, St. Aubin, Wood Special Projects - Oleson, St. Aubin, Wohlfert, Wood Ex-officio legal counsel Joint Ad Hoc Committee on Health Care - Fabus, Oleson, Wood Karen Williams reported that the Police and Fire Retirement System Board had received communication from Angela Bennett, the finance director regarding the pension contribution. The communication indicated that on December 30, 2014, $350,091 was transferred by the City to the Police and Fire Retirement system for the balance of the FY 2015 contribution. The total actuarial valuation-calculation contribution for FY 2015 was $11,050,091. It was moved by Trustee Wood and supported by Trustee Wohlfert to accept the $350,091 that was transferred by the City to the Police and Fire Retirement System for the balance of the FY 2015 contribution. Adopted by the following vote: 6 — 0. Trustee Oleson requested that a discussion item be added to the agenda to determine an appropriate time line for this information to get from the Finance Department to the Boomershine Consulting Group. Karen Williams reported that the Actuary will be at the February Joint Meeting. Karen Williams reviewed the Securities Lending Report for the period ending December 31, 2014. The meeting adjourned at 8:58 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE AND FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM BOARD MEETING MINUTES Joint Meeting February 16, 2015 Council Conference Room Tuesday, 9:15 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:29 a.m. — ..::.., ill a e A quorum of the both the Police and Fire Retirement System Board was pregen present. Trustees present: (ERS), Dedic, Good, Kraus, Munroe, D. Parker, M. Parker, Riley,!-- Wood — 8. (Police & Fire), Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood 7. Others present: Karen E. Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group; Todd Rittenhouse, Mondrian; Patmon Malcom, Pavel Sokolov, Earnest Partner. Attorney Ken Lane reviewed his legal opinion regarding contract employees for Human Resources Director Riley. He explained that the previous HR Director was reviewing with department to make certain the contract employees hired are compliant with IRS Rules. The Board discussed sending a letter from both boards to City Council and the Mayor reiterating the legal opinion. Mr. Todd Rittenhouse presented the Mondrian investment performance review of the Police and Fire Retirement System portfolio. He discussed the company organization, investment philosophy and performance for the last quarter. He discussed investment portfolios performance results for 2015, investment strategy a review of the portfolio holdings. Mr. Patmon Malcom and Mr. Pavel Sokolov presented an Earnest Partner investment performance review of the Employees Retirement System portfolio. Mr. Malcom provided an overview of the equity markets and international portfolio review. He discussed emerging and developed markets and the portfolios holdings. Mr. Sokolov discussed stock selection rationale, performance measurements and sector weighting. Mr. Sokolov reviewed the investment process and investment strategy. Joint Meeting February 16, 2016 Council Conference Room Tuesday, 9:30 a.m. 10th Floor City Hall Lansing, MI Page 2 The Joint Retirement System Board discussed September dates to a due diligence visit to Asset Consulting Group in St. Louis. The Joint Boards also discussed due diligence visit to see California to visit Western Asset and Franklin Templeton. The Joint Board also discussed dates to a spring educational session for the trustees in May to discuss commodities and private equity. Mr. George Tarlas of Asset Consulting Group reviewed the 2015 Year in Review Report.. Mr. Tarlas discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending December 31, 2015. Mr. Tarlas also reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial. Mr. Tarlas reviewed the January monthly financial report and indicated that the portfolios have performed well due to its diversification. He recommended further diversification and planned to discuss options during trustee education sessions. The Joint Boards request direction from Asset Consulting Group regarding excess monies in the Comerica account used to pay pension. With the addition of the City's annual contribution, both accounts for the Police and Fire Retirement System and the Employees Retirement System have more cash available than needed for quarterly pension payments. The Boards requested recommendation from Asset Consulting Group regarding investment options. The Joint Boards also discussed contacting Comerica regarding account options that could offer some interest for the excess cash reserves. Trustee Good stated that she would contact Comerica and report back to the Boards. There were no public comments. It was moved by Trustee Fabus and supported by Trustee Wohlfert to adjourn the meeting. Adopted by the following vote: 7 - 0 The meeting adjourned at 11:55 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT POLICE AND FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM BOARD MEETING MINUTES Joint Meeting February 16, 2015 Council Conference Room Tuesday, 9:15 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:29 a.m. r- A quorum of the both the Police and Fire Retirement System Board was' present,-, present. Trustees present: (ERS), Dedic, Good, Kraus, Munroe, D. Parker, M. Parker,-,Riley: Wood — 8. -- ; (Police & Fire), Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood 7. Others present: Karen E. Williams, Angela Bennett, Finance Department, Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group; Todd Rittenhouse, Mondrian; Patmon Malcom, Pavel Sokolov, Earnest Partner. Attorney Ken Lane reviewed his legal opinion regarding contract employees for Human Resources Director Riley. He explained that the previous HR Director was reviewing with department to make certain the contract employees hired are compliant with IRS Rules. The Board discussed sending a letter from both boards to City Council and the Mayor reiterating the legal opinion. Mr. Todd Rittenhouse presented the Mondrian investment performance review of the Police and Fire Retirement System portfolio. He discussed the company organization, investment philosophy and performance for the last quarter. He discussed investment portfolios performance results for 2015, investment strategy a review of the portfolio holdings. Mr. Patmon Malcom and Mr. Pavel Sokolov presented an Earnest Partner investment performance review of the Employees Retirement System portfolio. Mr. Malcom provided an overview of the equity markets and international portfolio review. He discussed emerging and developed markets and the portfolios holdings. Mr. Sokolov discussed stock selection rationale, performance measurements and sector weighting. Mr. Sokolov reviewed the investment process and investment strategy. Joint Meeting February 16, 2016 Council Conference Room Tuesday, 9:30 a.m. 10th Floor City Hall Lansing, MI Page 2 The Joint Retirement System Board discussed September dates to a due diligence visit to Asset Consulting Group in St. Louis. The Joint Boards also discussed due diligence visit to see California to visit Western Asset and Franklin Templeton. The Joint Board also discussed dates to a spring educational session for the trustees in May to discuss commodities and private equity. Mr. George Tarlas of Asset Consulting Group reviewed the 2015 Year in Review Report.. Mr. Tarlas discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending December 31, 2015. Mr. Tarlas also reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial. Mr. Tarlas reviewed the January monthly financial report and indicated that the portfolios have performed well due to its diversification. He recommended further diversification and planned to discuss options during trustee education sessions. The Joint Boards request direction from Asset Consulting Group regarding excess monies in the Comerica account used to pay pension. With the addition of the City's annual contribution, both accounts for the Police and Fire Retirement System and the Employees Retirement System have more cash available than needed for quarterly pension payments. The Boards requested recommendation from Asset Consulting Group regarding investment options. The Joint Boards also discussed contacting Comerica regarding account options that could offer some interest for the excess cash reserves. Trustee Good stated that she would contact Comerica and report back to the Boards. There were no public comments. It was moved by Trustee Fabus and supported by Trustee Wohlfert to adjourn the meeting. Adopted by the following vote: 7 - 0 The meeting adjourned at 11:55 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall 1� Lansing, MI - The Board was called to order at 8:30 a.m. ' Present: Trustees Fabus, Kraus, Oleson, St.Aubin, Wohlfert, Wood—6. s Absent: Trustee BerneroCo r�a Others: Karen E. Williams, Angela Bennett, Finance Department; AttoRey cr�en Lane, Clark Hill Law Office (representing the Law Department); Gregory Stump, Boomershine Consulting Group. It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of January 20, 2015. Adopted by the following vote: 6 — 0 There were no public comments. Secretary's Report. 0 new fire member(s), 1 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 325. 1 death(s), John Fetters, .Police, died 1/18/2015, age 85, spouse to receive 50%. Refunds made since the last regular meeting amounted to $86,487.70. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of January 2015 amounted to $2,355,646.20. Total retirement checks printed for the P&F System: 707. Total retirement checks printed for both systems: 1614. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved Trustee Wohlfert and supported by Trustee Wood to approve the following applications for Regular Age and Service Retirement: Matthew Holzhei, Fire Department, 25 years of service credits, age 46, effective February 17, 2015. (with the purchase of 7 months of service credits) David Emmons, Police Department, 25 years of service credits, age 54, effective February 20, 2015. Adopted by the following vote: 5— 0. Regular Meeting February 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported that the Applicant 2014-P 1118 has been scheduled to see the Medical Director for evaluation. Karen Williams updated the Police and Fire Retirement Board that the Retirement Office is waiting to receive the requested documents from Applicant #2014F1216. The Retirement Office has requested the applicant's medical records from Human Resources. There were no requests for non-duty disability retirement. There were no requests for refunds of accumulated contributions. Karen Williams updated the Trustees regarding the MAPERS One-Day Conference registration, March 13, 2015. Members who wished to attend should contact the Retirement Office. Karen Williams announced the MAPERS Spring Conference that will be held in May 17-19, 2015. Members who wished to attend should contact the Retirement Office. Attorney Ken Lane was asked by Trustee Fabus to review the definition of final average compensation. The Police and Fire Retirement Policy indicate that the final average compensation is the two highest consecutive years out of the last ten. Attorney Lane stated that the Retirement Ordinance indicates that the definition would include compensation throughout the members' career. Attorney Lane stated that he planned additional review to the collective bargaining agreements to verify the definition, and would report back at the next meeting. Trustee Fabus requested that the Police and Fire Retirement Policy be updated to reflect the new contracts' new multiplier and the eligibility requirements. Trustee Wood requested that the Retirement Ordinance be updated. Trustee St. Aubin recommended waiting until the City and the bargaining unit had a written document finalized. Attorney Ken Lane requested a copy of the funding policy for the Police and Fire Retirement Board. Karen Williams reported that she received a request from Mr. George Howell, who is scheduled for age and service conversion from duty disability. The Retirement Office mailed out certification forms for tax year 2014. Mr. Howell converts before the April 30, 2015 deadline and asked that any overage be spread over 12 months as we do with duty disability retirees. Regular Meeting February 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Mr. Howell has not completed his taxes and does not have his 1040 form available. Trustee Oleson inquired what has been done in the past. Ms. Williams responded there is no past practice regarding this type of issue and request. Trustee Kraus suggested that the Board request that Mr. Howell to complete his certification and 1040 documents for review. Trustee Kraus would not support action on a payment plan without an opportunity to review the certification form and 1040 tax document. Attorney Lane recommended a review of the Retirement Ordinance to before the Police and Fire Retirement Board considers a payment plan. Trustee Wood expressed concern regarding the establishment of a payment plan. Attorney Lane stated that the overage could be recouped from the retirement checks. Ms. Angela Bennett discussed a timeline for submission of actuarial data for the annual valuation. Ms. Bennett reported that she and Karen Williams met with Mr. Gregory Stump to discuss the types of information that are needed. Ms. Bennett indicated that there are two components of data that are submitted, the demographic information and the investment financial reporting. Ms. Bennett stated that investment information needs to be compiled before he can be submitted. Ms. Bennett talked with the accounting staff and the retirement office, and believed that the data could be provided by June. Trustee Oleson wanted to know if this timeline would ensure that valuation would be completed sooner. Ms. Bennett responded that the process was delayed last year due to staff shortage and Tegrit project. Trustee Oleson requested a policy that would be agreed to by the actuary, and finance department. Attorney Lane recommended a date where information is exchanged, a date for the draft, and a date for the final report. With input from Mr. Gregory Stump, Attorney Lane suggested June 30 as the data exchange, August 31 as the draft date, September 30. Attorney Lane stated that he would update the annual report policy and have it available at the next meeting. Karen Williams reviewed the Quarterly Expense Report and the Securities Lending Report for the period ending January 31, 2015. Trustee St. Aubin requested that the Retirement Office contact the Medical Director Trustee Fabus notified that he would be out of state for the following month: April, May, June and July. He expressed concern regarding having a quorum at the meeting, because the Board was down a member. The Board agreed to address quorum issues as they arise, if needed. It was moved by Trustee Oleson and supported by Trustee Wohlfert to adjourn the Police and Fire Retirement System Board meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:01 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Vice Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM BOARD MEETING MINUTES Joint Meeting February 17, 2015'E5 Council Conference Room Tuesday, 9:00 a.m 2 10th Floor City Hall Lansing, MI r The meeting was called to order at 9:02 a.m. The Retirement Board met jointly with the City Council Ways and Means Committee to hear the actuarial valuation presentation from Boomershine Consulting Group. A quorum of the both the Police and Fire Retirement System Board and the Employees' Retirement System Board were present. Trustees present: (ERS), Dedic (9:18), Kraus, Munroe, McCaffery, D. Parker (9:18), M. Parker, Wood —7. (Police & Fire), Fabus, Kraus, Oleson, St. Aubin, Wohlfert, Wood — 6. City Council Way and Means Committee: Councilwoman Carol Wood, Councilwoman Judi Brown-Clark - 2 Others present: Karen Williams, Angela Bennett. Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group; Gregory Stump, Boomershine Consulting Group; Julie Pierro, UBS Investments. Mr. Gregory Stump provided an actuarial valuation presentation for the Joint Retirement Board and the City Council Ways and Means Committee. Mr. Stump reviewed the valuation data for the period ending December 2013. He explained that contributions were still rising, but will not rise as steep as the previous period. Mr. Stump discussed that Joint Boards' return assumption of 7.6% and the recent market gains have improved the outlook. Mr. Stump summarized that that funding improvement was expected for both system, and that the unfunded liability was expected to be significant for the future. Mr. Stump also provided an overview of the historical funding process and contributions and provided projections, based upon different scenarios. Joint Meeting February 17, 2015 Council Conference Room Tuesday, 9:00 a.m. 10th Floor City Hall Lansing, MI Page 2 The City Council Ways and Means Committee adjourned their meeting at 9:49 a.m. Mr. George Tarlas distributed and reviewed the cash needs recommendation for the City of Lansing Employees' Retirement System for $5,800,000 and the Police and Fire Retirement System Retirement Board for $7,200,000. It was moved by Trustee Wood and supported by Trustee Wohlfert to redeem $3,600,000 from the Integrity portfolio and to redeem $3,600,000 from the William Blair portfolio from the Police and Fire Retirement System Investments for quarterly cash flow needs as recommended by Asset Consulting Group. Adopted by the following vote: 6-0 The Retirement Office recommended $50,000 be transferred from the Northern Trust Securities Lending Accounts to the Police and Fire Retirement System Board and the Employees Retirement System administrative accounts for expenses through March 30, 2015. It was moved by Trustee Kraus and supported by Trustee Wood to transfer $50,000 from the Securities Lending Investment Account to Police and Fire Retirement Board administrative account for quarterly cash flow needs. Adopted by the following vote: 6 — 0. It was moved by Trustee Mark Parker and supported by Trustee Kraus to redeem $2,500,000 from the Integrity portfolio and to redeem $3,300,000 from the William Blair portfolio from the Employees' Retirement System Investments for quarterly cash flow needs as recommended by Asset Consulting Group. Adopted by the following vote: 7 — 0. It was moved by Trustee Mark Parker and supported by Trustee Wood to transfer $50,000 from the Securities Lending Investment Account to Employees Retirement System Board administrative account for quarterly cash flow needs. Adopted by the following vote: 7 — 0. Joint Meeting February 17, 2015 Council Conference Room Tuesday, 9:00 a.m. 10th Floor City Hall Lansing, MI Page 3 Mr. George Tarlas reviewed the TRowe Price management change. Mr. Tarlas explained that T. Rowe Price plans to transition certain portfolio record keeping and other investment operations function to BNY Mellon. BNY Mellon will service trade support, security reference and other financial reporting. Mr. Tarlas stated that change will not change the investment strategy or the investment team. Mr. Tarlas discussed that T. Rowe Price reviewed the Investment Management Agreement and stated that change did not requirement any amendments to the agreement. T. Rowe Price has requested that the City of Lansing Retirement Boards contact the Northern Trust and authorize custodian to allow BNY Mellon access to the TRowe Price accounts held by the custodian. Mr. Tarlas recommended the Board confirm their acceptance of the change. Attorney Ken Lane reviewed the Investment Management Agreement and opined there was no need to amend the current contract with T. Rowe Price. It was moved by Trustee Wood and supported by Trustee Wohlfert for Attorney Ken Lane to draft a confirmation notice and send by email to TRowe Price that the Police and Fire Retirement Board has accepted the change to BNY Mellon for recordkeeping and some financial reporting duties. Adopted by the following vote: 6 — 0 It was moved by Trustee Munroe and supported by Trustee Wood for Attorney Ken Lane to draft a confirmation notice and send by email to TRowe Price that the Employees' Retirement System Board has accepted the change to BNY Mellon for recordkeeping and some financial reporting duties. Adopted by the following: 5 — 0. Mr. George Tarlas of Asset Consulting Group reviewed the Quarterly Performance reports for the 4th 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 December 31, 2014. Mr. Tarlas reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Tarlas reviewed the January monthly financial report/ Joint Meeting February 17, 2015 Council Conference Room Tuesday, 9:00 a.m. 10th Floor City Hall Lansing, MI Page 4 Ms. Julie Pierro, Portfolio and Client Services for UBS Trumbull Property Fund provided a performance review of the City of Lansing Employees' Retirement System and the Police and Fire Retirement System real estate investment funds. Ms. Pierro presented an overview of investment results of the UBS Trumbull Property Fund, the investment process and a market outlook. Mr. George Tarlas, distributed recommendations and discussed Equity Long/Short implementation for the Police and Fire Retirement System and the Employees' Retirement System. Asset Consulting Group recommended that the Employees' Retirement System modify its strategic allocation to 10% target of equity long/short, with a 10% decrease to the U.S large cap equity portfolio. The allocation could be achieved through the Private Advisors fund of funds strategy. Trustee Mark Parker requested if the Employees' Retirement System could review direct investments instead of fund of funds. Mr. Tarlas will provide direct investments for the ERS Board to review for implementing the Equity Long/Short. Asset Consulting Group recommended that the Police and Fire Retirement Board increase its allocation of Equity Long Short to 10% of its total portfolio and decrease of 5% to the U.S large cap equity portfolio. The allocation would be achieved through providing additional funds to the current Private Advisors strategy. It was moved by Trustee Kraus and supported by Trustee Oleson to increase its allocation from 5% to 10% to the Private Advisors strategy. Adopted by the following vote: 6 — 0. There were no public comments. The meeting adjourned at 11:44 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting March 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI r— The Board was called to order at 8:43 a.m. SE; Present: Trustees Fabus, Kraus, Oleson, St. Aubin, Wohlfert, Wood— 6. > Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark(Hill Caw r� Office (representing the Law Department), City Attorney Janene McIntyre. ; cn It was moved by Trustee Kraus and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of February 17, 2015. Adopted by the following vote: 6 — 0 It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the Official Minutes of the Joint Police and Fire Retirement System Board and the Employees' Retirement System Board Meeting of February 17, 2015. 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, 2 retired. Total: Active membership: 323. 2 death(s), Susan Roush, died 2/6/2015, age 59, spouse of Fire retiree; Martin J. Lardie, Fire, died 2/16/2015, age 90, 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 February 2015 amounted to $2,350,546.58. Total retirement checks printed for the P&F System: 707. Total retirement checks printed for both systems: 1613. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting March 17, 2015 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: Steven R. Sherman, Fire Department, 25 years, 4 months of service credits, age 49, effective March 23, 2015. Adopted by the following vote: 6 - 0 It was moved by Trustee Fabus and supported by Trustee Kraus to approve the following application for Regular Age and Service Retirement: Joseph M. Brown, Police Department, 24 years, 8 months of service credits, age 54, effective March 28, 2015. (Eligible with the Reciprocal Retirement Act with 4 months of reciprocal unit time from MERS/Eaton County) Adopted by the following vote: 6 — 0. Karen Williams reported that the Applicant 2014-P 1118 had seen the Medical Director and the medical report had been received by the disability subcommittee. Trustee Fabus reported that the disability subcommittee had met and recommended concurrence with the medical report to approve the duty disability for applicant 2014-P1118. It was moved by Trustee Fabus and supported by Trustee Kraus to approve the request for duty disability retirement of Applicant 2014-P1118. Adopted by the following vote: 6 — 0. Karen Williams updated the Police and Fire Retirement Board that the Retirement Office has received the requested documents from Applicant #2014-F1216 and the Human Resources. The documents have been 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 Robert Oleson provided a report of the MAPERS One-Day Conference held March 13, 2015. Trustee Oleson discussed conference sessions that included health care strategies, institutional investment, disability retirements, active versus passive investment, and Michigan retirement plan comparison. Regular Meeting March 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Oleson noted that the City of Lansing rated well among plans with its policies and procedures. Trustee Oleson provided conference information for trustee review. Trustee Wohlfert provided a report of his attendance at the MAPERS One Day Conference. Trustee Wohlfert appreciated the educational and networking experience. Karen Williams reminded members of the upcoming MAPERS Spring Conference. Members who wished to attend should contact the retirement office. Karen Williams distributed the updated City of Lansing Travel and Business Expenses Policy. Ms. Williams noted that the mileage reimbursement had increased to 57.5 cents. Attorney Ken Lane reported that the Police and Fire Retirement System Board's Education policy is written in such a way as to automatically adopt the City's Travel and Business Expense policy. Karen Williams updated the Police and Fire Retirement System Board regarding the Tegrit Pension Software project. Karen Williams reviewed the timeline for the completion of the project, scheduled for August 2015. Karen Williams requested that Tegrit attend one of the April Board meetings to demonstrate the web site estimator. Trustees will be able to perform user testing and provide feedback. Trustee St. Aubin reported to the Police and Fire Retirement Board that he discussed with Trustee Mark Parker of the Employees Retirement System Board the extension of Dawn Polihonki's contract for the software project. The extension is request through the end of the year to assist with the completion of the project. Trustee St. Aubin reported that Ms. Polihonki had not used up the funds that had been allocated for the project. The extension would be at her current rate of $90/hour, not to exceed $15,000. No addition al funds would need to be allocated. It was moved by Trustee Oleson and supported by Trustee Wood to extend Dawn Polihonki's contract through the end of 2015. Trustee Wohlfert inquired about the vendor's duties. Trustee St. Aubin explained that Ms. Polihonki duties are as coordinator to assist the Board sponsors and help facilitate the completion of the project. Adopted by the following vote: 6 — 0. Regular Meeting March 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Mr. Robert Rose provided public comments for items not on the agenda. Mr. Rose indicated that he was a candidate for public representative to the Police and Fire Retirement Board. Mr. Rose had been reviewed by the public safety committee and his candidacy was before the City Council for approval. Mr. Rose disclosed that he was contracted with the public service department for two months to fill in for an employee who was on medical leave. Mr. Rose indicated that he had served on the Employees' Retirement System Board. Attorney Ken Lane was asked by Trustee Fabus to review the definition of final average compensation. Attorney Lane performed a review of the recent Ordinance and collective retirement agreement. Attorney Lane opined that the current definition would include highest two years of compensation throughout the member's career. Attorney Lane recommended that the Police and Fire Retirement Board update its Summary Plan Description policy to reflect the current Ordinance and bargaining unit agreements. Attorney Lane recommended that the Police and Fire Board trustees review the document for amendments. It was moved by Trustee Wood and supported by Trustee Fabus to accept the recommendation from legal counsel that the Police and Fire Retirement Board Summary Plan Description Policy be updated to reflect the current Ordinance and bargaining unit language and amend the Final Average Compensation definition to span the career of a member of the Police and Fire Retirement System Plan effective March 17, 2015. Adopted by the following vote: 6 - 0 Attorney Lane distributed and reviewed the amended Annual Report Policy with the new dates to steamline the actuarial report process: June 30, data to actuary; August 30, valuation draft; September 30, Actuary final report. It was moved by Trustee Wood and supported by Trustee Oleson to approve the amended Annual Report Policy with the new dates for actuarial report. Trustee Wood reported that that City Council has received the independent audit communication for the Comprehensive Annual Financial Report. Trustee Wood indicated there were two comments regarding the retirement system: timeliness of the actuary report, documentation of annual benefit adjustments and increases. Trustee Wood requested that legal counsel review the report and draft a letter to City Council detailing the steps that the Police and Fire Retirement Board were taking to address these comments. Adopted by the following vote: 6 - 0. Regular Meeting March 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee St. Aubin requested that legal counsel draft a letter to City Council on behalf of the Police and Fire Retirement Board that details the steps the Board has taken to address the audit comments with the adoption of the amended annual report policy. Attorney Lane reported that TRowe Price moved its record keeping duties to BNY Mellon. At the February Joint Meeting, the retirement boards directed him to contact T Rowe Price with its acceptance of the change. Attorney Lane contacted TRowe Price by email. Trustee Wood inquired about the status of the Police and Fire Retirement Ordinance to reflect the new IAFF and FOP Nonsupervisory contracts' new multiplier and the eligibility requirements. Attorney Lane reported that the Police and Fire Retirement Ordinance are under review with the City Attorney's Office. Trustee Wood reported that the City Attorney's office presented a resolution to the Committee of the Whole meeting to add a new law firm to the Outside Legal Counsel list. During the meeting, members were informed that the firm handles fraud monitoring for pension systems. Trustee Wood expressed concern that the Retirement Board had procedures for contracting with its outside legal counsel. The Retirement Board did not get an opportunity to interview or discuss the firm. The resolution was pulled from the Committee of the Whole for the Board discussion. City Attorney McIntyre reported that the firm made a formal request to be added to the outside legal counsel list. Trustee McIntyre explained the outside legal counsel list and the process for additions to the list. The placement of a firm on the list does not obligate the City of Lansing or the retirement boards to contract with them. Trustee McIntyre reported that Labaton Sucharow offered a variety of services and indicated that there was no intention to select a firm for either board without their input. Trustee McIntyre indicated that there was no contract in place. Trustee Oleson inquired if the retirement board would have any obligation to contract with the firm. City Attorney McIntyre confirmed that the retirement board would not be obligated to engage the services of the firm. Trustee Wood discussed that the past practice had been for the retirement boards to interview and select the firms that provided services on behalf of the Board. Regular Meeting March 17, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Trustee Fabus indicated that any vendor involved with the Police and Fire Retirement Board has been screened and interviewed by the trustees. Trustee Fabus noted that if the Board wished to contract with another firm, members would conduct interviews and perform due diligence. Trustee Fabus indicated that a previous city attorney had a relationship with a firm that was added to the list on behalf of the Board. Trustee McIntyre indicated that neither she nor any member of her staff have a relationship with Labaton Sucharow. Attorney Ken Lane indicated the firm Labaton Sucharow was on the list of firms that were researched by legal counsel when the Police and Fire Board selected its fraud monitoring firm. Labaton Sucharow not make the top ten that were presented to the Board for review. Trustee Kraus inquired to legal counsel about a firm that was not hired by the Board who entered litigation on behalf of the Retirement Board. Attorney Lane reviewed that a previous City Attorney attended a Retirement Board meeting to request that a firm that had been rejected by the Board be given another opportunity. The Retirement Board denied the request. The firm was later added to the outside legal counsel list. Attorney Ken Lane indicated the Police and Fire Retirement Board had a policy in place regarding its work with outside legal counsel. The Police and Fire Board would not be required to contract with the firm. Trustee St. Aubin reviewed that the Police and Fire Retirement Board had made a decision to not pursue any further derivative legal actions. Trustee St. Aubin summarized the discussion that the Police and Fire Retirement Board had decided to continue with its current policies and procedures. Trustee Wood requested that a letter be drafted to the City Council that indicated the Police and Fire Retirement Board would continue to follow its current policies and procedures regarding outside legal counsel. The Retirement Board would not be obligated to use the added firm. Trustee St. Aubin requested that a letter be prepared by legal counsel to City Council as detailed by Trustee Wood. Karen Williams reported that she received a formal letter of request from Mr. George Howell, who was scheduled for age and service conversion from duty disability. Mr. Howell requested that he be allowed to establish a payment plan to spread his overage for tax year 2014, with installments from six up to twelve months. Mr. Howell submitted his 1040 and outside earnings certification form. Ms. Williams indicated that generally with duty disability retirees, overages are spread over a year. Trustee Oleson did not want to create a legal precedence. Attorney Ken Lane indicated that the Retirement Board had the ability to review these requests on a case by case basis. Trustee Kraus stated that Mr. Howard is gaining $1300 a month at conversion and his income will no longer be constrained by the duty disability requirements. Trustee Kraus would support a shorter time frame for the payment of the overage. It was moved by Trustee Kraus and supported by Trustee Oleson to allow the overage from tax year 2014 to be repaid within six months from Mr. George Howell's pension checks. Trustee Fabus inquired what would happen if Mr. Howell died prior to retirement system recouping the overage. Attorney Ken Lane stated that the Retirement System would still be able to recoup the money from the pension paid to the surviving beneficiary. Adopted by the following vote: 6 - 0 Karen Williams reviewed the Quarterly Expense Report and the Securities Lending Report for the period ending February 28, 2015. Trustee St. Aubin requested that a list be provided for possible due diligence visits and providing education and training for trustees. It was moved by Trustee Fabus and supported by Trustee Wohlfert to adjourn the Police and Fire Retirement System Board meeting. Adopted by the following vote: 6 — 0. The meeting adjourned at 9:47 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 21, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MIy The Board was called to order at 8:32 a.m. Present: Trustees Oleson, Rose, St. Aubin, Wohlfert, Wood— 5. �s art Absent: Trustee Bernero c-, Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney-,XerF Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Oleson and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of March 17, 2015. 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: 321. 1 death(s), Rodney Ray, died 2/27/2015, age 84, 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 March 2015 amounted to $2,361,366.50. Total retirement checks printed for the P&F System: 707. Total retirement checks printed for both systems: 1612. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Oleson and supported by Trustee Wood to approve the following application for Regular Age and Service Retirement: Daniel Oberst, Fire Department, 25 years of service credits, age 49, effective April 18, 2015 (with the purchase of 4 months of universal service credits) Wade Elton, Fire Department, 25 years of service credits, age 48, effective May 2, 2015. (with the purchase of 2 years of military service credits) Regular Meeting April 21, 2015 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 application for Regular Age and Service Retirement (continued): Gary L. Masseau, Police Department, 25 years of service credits, age 50, effective May 15, 2015. Robert A. Merritt, Police Department, 25 years of service credits, age 48, effective May 16, 2015 (with the purchase of 8 months of universal service credits. Vicki Dahlke, Police Department, 25 years of service credits, age 46, effective June 15, 2015. Adopted by the following vote: 5 - 0 Karen Williams updated the Police and Fire Retirement Board that Applicant #2014-F1216 has been scheduled to see the Medical Director. There were no requests for non-duty disability retirement. There were no requests for refunds of accumulated contributions. Trustee Fabus requested an excused absence from the April Meeting. It was moved by Trustee Oleson and supported by Trustee Wohlfert excuse Trustee Fabus from the April Meeting. Adopted by the following vote: 5 - 0 Karen Williams reminded members that MAPERS Spring Conference that will be held in May 17-19, 2015. Members who wished to attend should contact the Retirement Office to register. Karen Williams updated the Police and Fire Retirement System Board regarding the Tegrit Pension Software project. Karen Williams explained that Tegrit has been scheduled to demonstrate the web site estimator demonstration. Karen Williams reviewed the instruction documents on how to use the estimator. Trustee St. Aubin provided recommendations from Asset Consulting Group (ACG) regarding due diligence visits. ACG provided the following options: Chicago to see custodial bank Northern Trust and investment manager, William Blair; Los Angeles and Salt Lake City to see investment managers, Western Asset, Franklin Templeton and Wasatch. Regular Meeting April 21, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three The Police and Fire Retirement Board will discuss the options further at the Joint meeting with the Employee Retirement Board. Ms. Williams also noted that ACG has providing a schedule of managers that will be invited to the Retirement Joint meeting for performance review. Trustee Wood requested that additional item be added to other business to discuss retirement forms. Attorney Ken Lane reported that Northern Trust sent documents to the Police and Fire Retirement System Board and the Employees' Retirement System Board indicating that both systems were entitled to refunds from a class action lawsuit. Attorney Lane explained that the law suit is related to the indirect security lending system. The City of Lansing Retirement Boards participates in direct securities lending. Attorney Lane reviewed how securities lending operates. Attorney Lane explained that the lawsuit did not allege anything illegal, but sated that Northern Trust could have made more money with better investment choices. Attorney Lane indicated that the lawsuit does not relate to their duties as custodial bank. Attorney Lane discussed the financial audit comments regarding the timing of the actuarial report. The Police and Fire Retirement Board requested that a letter be drafted to the Mayor and City Council detailing how the Police and Fire Board had addressed the financial audit comments. Attorney Lane described the amendments to the Annual Report Policy that includes specified due dates. Attorney Lane recommended that the Police and Fire Retirement Board update its Summary Plan Description policy to reflect the current Ordinance and bargaining unit agreements. Attorney Lane had distributed the document for review. The Retirement Office provided updates for the document. Trustee Wood had been for an update on the Police and Fire Retirement Ordinance. Attorney Lane informed the Police and Fire Retirement Board is still under review by the City Attorney's Office. Angela Bennett reviewed the Police and Fire Retirement System projections analysis of the effect of recent collective bargaining agreements on future City contributions. Ms. Bennett had a study completed by Boomershine Consulting Group to determine and isolate the impact of these agreement changes. The study did not include the actions of the Retirement Board regarding changes to the interest rate and amortization. Regular Meeting April 21, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Wood inquired about who requested and paid for the study. Ms. Bennett requested the study and the City paid for the study. Trustee Wood informed the Police and Fire Retirement Board that as part of the budget process, the Financial Health Team had been requested by the Mayor to provide recommendations for pension and health care. Trustee Wood indicated that the Financial Health Team has not met with the Retirement Boards. Ms. Angela Bennett informed the Police and Fire Board that the Financial Health Team is reviewing municipalities' state wide to provide recommendations. Many cities share the same issues with funding for pensions and contributions. Trustee Wood expressed concern that the Retirement Boards did not have the opportunity to review with Financial Health Team regarding the changes to the actuarial assumptions and amortization put in place to improve the health of the retirement systems. Karen Williams provided information of the duty disability income verification. Duty disability retirees are required to submit an annual certification of outside income by April 30, 2015. The Police and Fire Retirement Board policy states that second letters of request be sent to duty disability retirees who did not respond prior to a suspension of pension benefits. The Police and Fire Retirement Board Disability subcommittee provided a list of retirees to be re-evaluated for the continuation of benefits. Ms. Williams reported that the May Joint meeting will be held prior to the Employees Retirement System Meeting, so that ERS members could discuss the Equity Long/Short investment with Asset Consulting Group. Trustee St. Aubin added an item to other business regarding divorce vesting. Trustee Wood inquired if the retirement office provides a health care form describing the coverage when an employees' retires. Karen Williams explained that there was no health care description form distributed to retirees by the Retirement Office. The Retirement Office determines eligibility, but does not administer the retiree health care plans. Ms. Angela Bennett further clarified that the Benefits Office can provide information on health care coverages. Ms. Bennett would not recommend that the Retirement Office provide health care coverage information because the plans are not administered through the Retirement Office. Trustee St. Aubin has received a request from an employee regarding pension vesting issues and divorce. The employee requested that the Police and Fire Retirement Board provide a letter stating that the employee does not have a vested benefit. Karen Williams updated the Retirement Board that she had spoken to the employee and also sent the request to the City Attorney's Office for an opinion. Trustee Rose expressed concern that the Police and Fire Retirement Board letter would be considered policy for other employees. Attorney Ken Lane opined that the vesting requirements are clearly defined in the Police and Fire Retirement Ordinance which is available to the public. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending March 31, 2015. Trustee St. Aubin requested that a list be provided for possible due diligence visits and providing education and training for trustees. It was moved by Trustee Wood and supported by Trustee Wohlfert to adjourn the Police and Fire Retirement System Board meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 9:41 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System r 0 CITY OF LANSING C7' JOINT POLICE AND FIRE RETIREMENT SYSTP and -� EMPLOYEES' RETIREMENT SYSTEM BOARD MEETING MINUTES to N r•, Joint Meeting May 12, 2015 Council Conference Room Thursday, 9:15 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 9:15 a.m. A quorum of the both the Police and Fire Retirement System Board was present present. Trustees present: (ERS), Good, Kraus, Munroe, D. Parker, M. Parker, Riley. — 6. (Police & Fire), Fabus (9:20), Good, Rose, St. Aubin, Wohlfert. - 5. Others present: Karen E. Williams, Angela Bennett, Finance Department; Donna Black, Human Resources Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Nathan Burke, George Tarlas, Asset Consulting Group; Eileen Kwei, Artisan; Michael Powers, Tom Franzese, Lazard. It was moved by Trustee Good and supported by Trustee Wohlfert to excuse Trustee Oleson from the Joint Retirement Boards May meeting. Adopted by the following vote: 5 -0 It was moved by Trustee Dedic and supported by Trustee Munroe to excuse Trustee Wood from the Joint Retirement Boards May meeting. Adopted by the following vote: 6 — 0. Trustee Riley distributed a report regarding contract employees. The report addressed the issues of returning retirees as contract employees who meet standards for complying with the Internal Revenue Service (IRS). Joint Meeting May 12, 2016 Council Conference Room Tuesday, 9:30 a.m. 10th Floor City Hall Lansing, MI Page 2 Deputy Director Donna Black indicated that City Departments were contacted in January to provide updates of retirees and their contracted assignments. Ms. Black explained that upon the initial review, it was determined that contracted assignments were not that same as the former positions. In some cases, the number of hours, days and duties varied from the original assignments. Trustee St. Aubin and Trustee Dennis Parker expressed concern that there were returning retirees that continued to perform the same job duties. Ms. Black indicated that additional steps were being taken to continue a review of assignments of retirees returning as contract employees, including extended contracts. Trustee Riley stated that the Human Resources Department will continue to monitor contracts to remain in compliance with IRS guidelines. It was moved by Trustee Dedic and supported by Trustee Good to request from Human Resources a copy of the reviewed contract employees and their assignments. Adopted by the following vote: 6 - 0. Eileen Kwei, Director and Product Specialist, presented the Artisan investment performance review of the Police and Fire Retirement System portfolio. She discussed the firm overview, the investment team, philosophy and processes. She also reviewed the performance analysis and positioning. She discussed investment portfolios performance results as of March 2016. Mr. Michael Powers and Mr. Tom Franzese presented a Lazard investment performance review of the Employees Retirement System portfolio. Mr. Powers discussed the firm overview, investment process, philosophy and objectives. Mr. Franzese provided a market, portfolio review and outlook. The Joint Retirement System Board discussed September dates to a due diligence visit to Asset Consulting Group in St. Louis. The Joint Boards also discussed due diligence visit to see California to visit Western Asset and Franklin Templeton. The Joint Board also discussed dates to a spring educational session for the trustees in May to discuss commodities and private equity. Mr. George Tarlas of Asset Consulting Group discussed the Market environment and total portfolio analysis. Mr. Nathan Burke discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending March 31, 2016. Mr. Burke provided an analysis of the portfolios equity, fixed income and real estate investments. Mr. Burke reviewed the April monthly financial report. Mr. George Tarlas reviewed diversification option discussed at the trustee education session. There were no public comments. The meeting adjourned at 11:55 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM AGENDA Regular Meeting May 12, 2015 Cit�r Council Conference Room Tuesday, 8:30 a.m. 10t Floor, City Hall Lansing, Michigan 1. Call to Order. 2. Roll Call — Trustees Bernero, Fabus, Kraus, Oleson, Rose, St. Aubin, Wohlfert, Wood — 8. 3. Reading of the Official Minutes of the Police and Fire Retirement System Board Meeting of April 21, 2015. 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($), . 0 transfers, 1 retired. Total: Active membership: 320. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements--to 1�' r-, the System year-to-date amount to $0.00. Retirement allowances paid for - the month of April 2015 amounted to $2,366,815.18. Total retirement checks = printed for the P&F System: 707. Total retirement checks printed for 06th •• systems: 1620. Domestic relations order received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. 6. Applicant for Regular Age & Service Retirement: Brian Ellis, Police Department, 25 years of service credits, age 45, effective June 13, 2015 7. Request for Duty Disability Retirement Applicant 2014 — F1215 (Pending) 8. Request for Non Duty Disability Retirement Applicant 2015 — P0512 9. Request for Refund of Accumulated Contribution 10.Excusing of Board Members Regular Meeting May 12, 2015 City Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, Michigan 11.Training and Education NCPERS Annual Conference Report MAPERS Spring Conference Tegrit—Arrivos Project 12.Public Comments for items not on the Agenda 13.Other Business: a. Ordinance/Board Policies/Updates —Attorney Ken Lane b. Duty Disability Income Verification updates c. Amendments to Investment Policy 14.Pending (items): 15. Quarterly Expenses Report, Monthly Investment Report and Security Lending Report CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM and POLICE AND FIRE RETIREMENT SYSTEM BOARD MEETING MINUTES Joint Meeting May 14, 2015 c- Council Conference Room Thursday, 8:30 a.rrts.> 10th Floor City Hall Lansing, MI c r7-I The meeting was called to order at 8:32 a.m. A quorum of the both the Police and Fire Retirement System Board and the Embigye s' Retirement System Board were present. Trustees present: (ERS), Dedic, Kraus, McCaffery, McIntyre, D. Parker, M. Parker, Wood (8:45) —7. (Police & Fire), Kraus, Oleson, Rose, St. Aubin, Wohlfert, Wood (8:45)— 6. Others present: Karen Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group; Gregory Stump, Boomershine Consulting Group; Tammy Paquette, Tegrit Group. Ms. Tammy Paquette provided a demonstration of the Arrivos Web Site Estimator for the Tegrit software project. The Web Site Estimator would allow employees to perform and print retirement calculations. The estimator is still in the test environment. Trustee Wood expressed concern that a disclaimer print on calculation page. The disclaimer would indicate that calculation is for informational purposes and that an official final calculation could only be provided by the retirement office. Ms. Williams explained that legal counsel did provide a disclaimer that addressed Trustee Wood's concern and that it will print on the calculation page for employees. Ms. Williams requested that trustee test the system and report to the Retirement Office issues, so they can be corrected. Ms. Williams provided a brief overview of the Retirement Office Arrivos site and the function available with the system. Trustee Wood inquired if there was an audit trail available within the Arrivos system. Ms. Williams responded that an audit trail would be created with any edits, corrections or deletions in the Arrivos System. Joint Meeting May 14, 2015 Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page 2 Trustee Dedic left the meeting. Ms. Williams provided an update from the Tegrit project manager that outlined the remaining data migration issues and recommendations to address the items to complete the project. Ms. Williams reported that Tegrit will have a meeting with the City of Lansing Information Technology department to provide a status of the data migration issues. Trustee St. Aubin informed the Police and Fire Retirement System that Trustee Fabus requested to be excused from the Joint Meeting for work-related duties. It was moved by Wood and supported by Trustee Oleson to excuse Trustee Fabus from the Police and Fire Retirement Board May Joint meeting. Adopted by the following vote: 6 -0 It was moved by Trustee Oleson and supported by Trustee Wohlfert to excuse Trustees Fabus, St. Aubin and Wood from the Police and Fire Retirement Board May meeting. Adopted by the following vote: 6 - 0 Ms. Williams reported that Trustee Munroe of the Employees Retirement System requested to be excused from the Joint Meeting and May official meeting due to illness. It was moved by Trustee Mark Parker and supported by Trustee Wood to excuse Trustee Carol Munroe from the May Employees Retirement System Board meeting and the Joint Board meeting. Adopted by the following vote: 5 - 0 Trustee St. Aubin and Trustee Dennis Parker presented a plaque to Trustee Antonia Kraus in recognition of her years of dedicated service on the Police and Fire Retirement Board and the Employees Retirement Board. Both Boards congratulated Trustee Kraus on her retirement from the City of Lansing. Trustee Kraus expressed her appreciation and commended the work of both boards to ensure a strong retirement system. She also thanked Asset Consulting Group for their leadership in assisting the Board with investment guidance. Joint Meeting May 14, 2015 Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page 3 It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board meeting of April 21, 2015. Adopted by the following vote: 6 — 0 It was moved by Trustee Oleson and approved by Trustee Kraus to approve the following application for Regular Age & Service Retirement: Brian Ellis, Police Department, 25 years of service credits, age 45, effective June 13, 2015. Adopted by the following vote: 6 -0. It was moved by Trustee Kraus and supported by Trustee Wood to send Applicant #2015-P0512 to the medical director for non-duty disability evaluation. Trustee St. Aubin offered a friendly amendment that was accepted to request additional information from the applicant regarding the condition or injury that will be evaluated. The information will be kept confidential and used to send the applicant to the appropriate medical personnel. Adopted by the following vote: 6 — 0. Trustee Oleson requested approval for NCPERS conference expenses. The conference was held in a high cost area and exceeded the regular meal per diem amounts. It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the NCPERS Conference Expenses for Trustee Oleson. Adopted by the following vote: 6 — 0. Trustee Wood requested that Mr. George Tarlas address the City of Lansing performance in light of reports during the budget process that the system has 100 million dollar liability, and discussion of other municipalities that have had bankruptcy. Mr. George Tarlas of Asset Consulting Group distributed and reviewed the cash needs recommendation for the City of Lansing Employees' Retirement System for $5,000,000 and the Police and Fire Retirement System Retirement Board for $6,000,000. Joint Meeting May 14, 2015 Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page 4 The Retirement Office recommended $50,000 be transferred from the Northern Trust Securities Lending Accounts to the Police and Fire Retirement System Board and the Employees Retirement System administrative accounts for expenses through March 30, 2015. It was moved by Trustee Wood and supported by Trustee Olson to redeem $2,000,000 from the MD Sass portfolio and to redeem $4,000,000 from the Western Asset portfolio from the Police and Fire Retirement System Investments for quarterly cash flow needs as recommended by Asset Consulting Group, and $50,000 to be transferred from the Northern Trust Securities Lending Accounts to the administration accounts for expenses through June 30, 2015. Adopted by the following vote: 6-0 It was moved by Trustee Kraus and supported by Trustee Mark Parker to redeem $2,000,000 from the MD Sass portfolio and to redeem $3,000,000 from the Western Asset portfolio from the Employees Retirement System Investments for quarterly cash flow needs as recommended by Asset Consulting Group, and $50,000 to be transferred from the Northern Trust Securities Lending Accounts to the administration accounts for expenses through June 30, 2015. Adopted by the following vote: 5 — 0. Mr. George Tarlas reviewed the William Blair corporate restructure. Mr. Tarlas explained that William Blair has formed the William Blair Asset Management Team. Mr. Tarlas discussed that William Blair has requested an amendment to the agreements with the City of Lansing retirement boards to consent to the change and assign the contract to the newly formed asset management team. Mr. Tarlas indicated that there will be no effect on investment managers, resources allocated or portfolio strategy. Mr. Tarlas recommended the Boards confirm their acceptance of the change. Trustee Wood inquired if there was any litigation or issues with William Blair regarding the name change. Mr. George Tarlas indicated Asset Consulting Group was not aware of any issues or litigation and that the change was not uncommon. Attorney Ken Lane indicated that he had received and reviewed the amendment and indicated that it was ready for signatures. Joint Meeting May 14, 2015 Council Conference Room Thursday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page 5 It was moved by Trustee Kraus and supported by Trustee Wohlfert for the Police and Fire Retirement System to consent to the amendment to assign its contract to the William Blair Asset Management Team as recommended by Asset Consulting Group. Adopted by the following vote: 6 — 0 It was moved by Trustee M. Parker and supported by Trustee Kraus for the Employees Retirement System to consent to the amendment to assign its contract to the William Blair Asset Management Team as recommended by Asset Consulting Group. Adopted by the following: 5 — 0. Mr. George Tarlas updated the Joint Retirement Boards regarding Northern Trust litigation settlement. Mr. Tarlas reported that Northern Trust sent documents to the Employees Retirement System Board and the Police and Fire Retirement System Board indicating that both systems were entitled to refunds from a class action lawsuit. Mr. Tarlas indicated that there was no action needed at this time. Mr. Tarlas indicated that the retirement boards will be notified of the amount of the settlement. Mr. George Tarlas encouraged due diligence trips for visits to some of the investment managers. Trustee St. Aubin indicated that he did not want the due diligence trips to interfere with Trustee education opportunities at MAPERS or NCPERS in the fall. Trustee St. Aubin suggested due diligence in early September of early October. Trustee Kraus reminded members and Trustee St. Aubin confirmed that Police and Fire Retirement Board trustees will not be authorized to attend the IFEBP conference in Hawaii this year. Mr. George Tarlas also recommended Trustee training with Asset Consulting Group. He suggested having this training in conjunction with the next Joint meeting in August. The Joint Retirement Board agreed to have training after its meeting in August. Mr. George Tarlas provided an amended Police and Fire Retirement Board investment policy that would transfer 5% from Large Cap Equities and allocate it to increase Long/Short Equity. It was moved by Trustee Kraus and supported by Trustee Oleson to approve the amended Police and Fire Retirement Board Investment Policy as recommended by Asset Consulting Group. Adopted by the following vote: 6 — 0. Mr. George Tarlas of Asset Consulting Group reviewed the Quarterly Performance reports for the 1st quarter of 2015. Mr. Tarlas discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending March 31 , 2015. Mr. Tarlas reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Tarlas reviewed the April monthly financial report and indicated that the portfolios performed well over the last quarter. Mr. George Tarlas indicated that the City of Lansing retirement portfolios for the Police and Fire Retirement System and the Employees Retirement System has performed well due to its diversification. The systems are well poised to handle market changes and adjustment within its equity and bond investments. Mr. Tarlas discussed that the retirement portfolios will participate when the market is good, but the Retirement Board through its diversification have built in strategies to weather downturns. There were no public comments. The meeting adjourned at 10:13 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting June 16, 2015 � ' Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI C, 00 The Board was called to order at 8:38 a.m. '. Present: Trustees Oleson, Rose, St. Aubin, Wohlfert, Wood— 5. Absent: Trustee Bernero, Fabus Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Laurel M. The Police and Fire Retirement System Board acknowledged receipt of the Committee of the Whole Minutes for the meeting of May 12, 2015. There was no quorum for an official meeting. It was moved by Trustee Oleson and supported by Trustee Wohlfert to approve the Official Minutes of the Joint Employees Retirement System Board and the Police and Fire Retirement System Board Meeting of May 14, 2015. 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, 3 retired. Total: Active membership: 338. 2 death(s), Florine Radee, died 4/12/2015, age 87, spouse of fire member; James R. Stampski, Fire died May 4, 2015, age 67, 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 2015 amounted to $2,387,123.11. Total retirement checks printed for the P&F System: 709. Total retirement checks printed for both systems: 1620. Domestic relations order received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting June 16, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Mr. Robert Rose introduced Ms. Laurel McDevitt of Dewpoint as the project coordinator for the Tegrit software implementation. Ms. McDevitt replaced Dawn Polihonki. Ms. McDevitt discussed her background in public management. She also reviewed her experience as a project manager and provided an overview of some her work with the implementation of software systems. Ms. McDevitt provided an update of the Tegrit project. Ms. McDevitt discussed the next steps of completing user testing, validating and automating data exchange. Trustee St. Aubin introduced the members of the Police and Fire Retirement System. It was moved by Trustee Oleson and supported by Trustee Wood to approve the following application for Regular Age and Service Retirement: Del Kostanko, Police Department, 25 years of service credits, age 48, effective June 13, 2015 (with the purchase of 2 years of military service credits and 1 year, 1 month of universal buy-in of service time) Adopted by the following vote: 5 - 0 Trustee Wolhfert discussed his attendance at the MAPERS Spring Conference Report. Trustee Wohlfert discussed that training seminar, legal updates and enjoyed the new trustee workshop. Trustee Oleson provided his oral report of the MAPERS Spring Conference. He discussed workshops that he attended that included legislative updates. Attorney Ken Lane provided a review of the legislative breakfast held at MAPERS. He discussed Senate Bill 102 that focused on state teachers. Attorney Lane also discussed employees that retiree and come back as a contract employee. Issues arise if a person gets a pension, but continues to work the exact same job and hours. During one of the workshops, the moderator stated this situation can be problematic and violate the IRS code if specific contracts are not in place. Attorney Lane recommended that Police and Fire Retirement Board perform a due diligence review of the city contract provisions. Regular Meeting June 16, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Angela Bennett explained the difference between an independent contractor and a person who works on a contract. Ms. Bennett explained the language in the city contract does specify that the worker is not an employee, but works under a contract. Attorney Ken Lane will do additional research and bring a report back to the Police and Fire Retirement Board. Trustee Wohlfert reported that the Police and Fire Retirement Board Disability subcommittee had received a report from the Medical Director for Applicant #2014-F1216. The subcommittee reviewed the report and recommends concurrence with the Medical Director to approve the request for duty disability retirement. It was moved by Trustee Wohlfert and supported by Trustee Oleson to approve the request for duty disability retirement for Applicant 2014 —F1215. Adopted by the following vote: 5 — 0 Karen Williams updated the Police and Fire Retirement Board that Applicant #2015-P0512 is listed as pending for nonduty disability retirement. The Retirement Office has sent a request for the applicant's medical reports and documents to send to the Medical Director. It was moved by Trustee Wood and support by Trustee Wohlfert to approve the following request for Refund of Accumulated Contribution: Brian Rasdale, Police, $8,269.10, not vested Trustee Wohlfert inquired if the applicants receive interest in addition to their contributions. Ms. Williams indicated that the interest was 3% as allowed by policy. Trustee St. Aubin indicated that the Police and Fire Retirement Board should Review its policy regarding the interest rate. Trustee Rose inquired about the reasoning behind providing interest to contributions for employees that terminate. Trustee Wood explained that interest was given because monies had been taken from their check, held and utilized for investment purposes. For those members who retire, they receive these contributions and interest in their pension. Regular Meeting June 16, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Angela Bennett agreed that the interest rate may be high, but also expressed caution about the administrative burden when changing the interest rate. Angela Bennett discussed tracking and calculating for members who have contributions with different rates. Attorney Ken Lane believed that the Police and Fire Retirement Board had the authority to change the interest rate for accumulated contributions but stated that he would review the collective bargaining agreements, polices and Ordinance. Adopted by the following vote: 5 — 0 Trustee Fabus requested an excused absence from the June Meeting. It was moved by Trustee Oleson and supported by Trustee Wohlfert to excuse Trustee Fabus from the June Meeting. Adopted by the following vote: 5 - 0 Trustee Wood requested a Retirement Ordinance update. Attorney Ken Lane was informed by the City Attorney's office that the Ordinance is still waiting for the finalized collective bargaining agreements for the Police and Fire members. Attorney Lane distributed a copy of the revised Investment Policy. He also recommended that the Police and Fire Retirement Board review its Frequently asked Questions document for updating. Attorney Lane also discussed the Northern Trust settlement. The settlement administrator will determine the amount that will be received by the Police and Fire Retirement Board. Attorney Lane explained that the settlement is not based upon any fraud. The lawsuit claims that Northern Trust could have made better investment choices within in its direct securities lending program. Karen Williams provided information of the duty disability income verification. Duty disability retirees are required to submit an annual certification of outside income by April 30, 2015. Ms. Williams reported that there were two adjustments and two suspensions due to non-reporting of income. Trustee Oleson requested the status of retirees to be re-evaluated for the continuation of benefits. Ms. Williams explained that letters are being sent to these retirees. She also indicated that some retirees are out of state and the coordination of some of the re-evaluations would take longer. Regular Meeting June 16, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Wood inquired about re-evaluations disability retirees who live out of state. Trustee St. Aubin reported that disability retirees who choose to move out of state are still subject to re-evaluation at their expense. Karen Williams reported that the Police and Fire Retirement Board discussed due diligence visits in the fall. Ms. Williams indicated once a decision had been made, the visits would need to be arranged in coordinate with Asset Consulting Group (ACG). ACG recommended due diligence visits to Northern Trust and William Blair. Trustee St. Aubin added two items to other business regarding the post-retirement benefit adjustment and deadline for actuarial information. Trustee Oleson indicated that there was confusion with Fire members regarding how the post-retirement benefit adjustment works. Trustee Oleson inquired if the retirement office could provide an example sheet that could be distributed. Karen Williams will provide an example sheet at the next meeting for review that can be distributed. The Police and Fire Retirement Board inquired about the status for the actuarial data exchange. Ms. Angela Bennett requested additional time to provide the financial data to the actuary. She reported that the demographic information had been sent, but the financial data had been delayed due to priorities with the Tegrit software implementation and staff shortage. Trustee Wood inquired when the financial data would be ready. Ms. Bennett estimated a few weeks, but cautioned that the finance department may need additional time. It was moved by Trustee Rose and supported by Trustee Wood to extend the Reports deadline to exchange data to July 21, 2015. Adopted by the following vote: 5 - 0 Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending May 30, 2015. Trustee St. Aubin indicated that he would not be available to attend the July Police and Fire Retirement Board meeting. The meeting adjourned at 9:54 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 21, 2015 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. r� r-- Present: Trustees Good, Oleson, Rose, Wohlfert, Wood— 5. ' Absent: Trustee Bernero, Fabus, St. Aubin Trustee Oleson presided. Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Dr. Victor Roth, Medical Director It was moved by Trustee Wood and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of June 16, 2015. 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: 336. 1 death(s), Joyce E. Decker, died 10/6/2014, age 89, spouse of fire retiree. Refunds made since the last regular meeting amounted to $8,269.10. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of June 2015 amounted to $2,402,866.00. Total retirement checks printed for the P&F System: 711. Total retirement checks printed for both systems: 1627. Domestic relations order received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Trustee Oleson introduced Dr. Victor S. Roth, Police and Fire Retirement Boards medical director. Dr. Roth discussed his role as Medical Director and discussed his training in occupational medicine and his experience as Medical Director for municipalities in Michigan, his work with General Motors and the state of Alabama. Dr. Roth is currently licensed in Michigan and Ohio. Regular Meeting July 21, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Trustee Wood inquired if there were any repetitive injuries from the City of Lansing that should be reviews. Trustee Wood also asked if there were any procedures or training that could be done to lessen these injuries. Trustee Wohlfert asked Dr. Roth if the injuries, disabilities and ages of the City of Lansing Police and Fire members are consistent with other municipalities. Dr. Roth stated that back injuries are an area that can be improved with ergonomic training and programming. Dr. Roth stated that he did not recall any differences in evaluations between different municipalities, but he had not done a formal comparison. Trustee Wood inquired if the medical director confers with other physicians to make a determination on the disability. Dr. Roth stated that if he needs additional information, he would generally contact the retirement office to indicate if a need for a specialist. Dr. Roth explained his process of evaluating an employee and the timeline to completing his report. It was moved by Trustee Wohlfert and supported by Trustee Wood to approve the following application for Regular Age and Service Retirement: Marshall L. Hudson, Jr., Fire Department, 25 years, 7 months of service credits, age 54, effective July 28, 2015. Lawrence Goff, Fire Department, 25 years of service credits, age 51, effective August 15, 2015. Daniel Kriegbaum, Fire Department, 25 years of service credits, age 54, effective August 17, 2015. Patrick Wieferich, Fire Department, 25 years of service credits, age 50, effective August 21, 2015 Timothy Thelen, Fire Department, 25 years of service credits, age 50, effective August 23, 2015 Rodney Faust, Fire Department, 25 years of service credits, age 51, effective August 25, 2015 Adopted by the following vote: 5 - 0 Regular Meeting July 21, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three There were no requests for duty disability. Ms. Williams indicated that all the medical records for Applicant # 2015-PO512 has been received for the non-duty disability retirement request. Trustee Rose provided an update for the Tegrit software project and indicated that the go live date had been delayed to August due to security issues, such a firewall and encryption. Ms. Williams updated the Board on the progress of the user acceptance testing for payroll processes and workflow. Karen Williams distributed conference information for the upcoming MAPERS Fall Conference and the NCPERS Public Safety Conference It was moved by Trustee Wood and supported by Trustee Wohlfert to allow the chairperson and members to attend the NCPERS Public Safety Conference. Adopted by the following vote: 5 — 0. Karen Williams reported that the Police and Fire Retirement Board discussed due diligence visits in the fall. Ms. Williams indicated once a decision had been made, the visits would need to be arranged in coordinate with Asset Consulting Group (ACG). ACG recommended due diligence visits to Northern Trust and William Blair. It was moved by Trustee Rose and supported by Trustee Wood to approve a due diligence trip for early November to Chicago Illinois to see Northern Trust and Williams Blair. Trustee Wood indicated she preferred the due diligence visit to be after the November election. Adopted by the following vote: 5 - 0 Karen Williams reported that Mr. Dustin Matusko had requested his accumulated contributions of$7,213.43. It was moved by Trustee Wood and supported by Trustee Rose to approve the request for accumulated contributions for Mr. Dustin Matusko, Police, not vested of $7,213.43. Adopted by the following vote: 5 — 0. Karen Williams reported that Trustee Fabus and Trustee St. Aubin requested to be excused from the July meeting due to work obligations. Regular Meeting July 21, 2015 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 Wohlfert to excuse Trustee Fabus and Trustee St. Aubin from the July meeting Adopted by the following vote: 5 — 0 Attorney Ken Lane updated the Retirement Board that the trustees have the authority under the Ordinance to set the interest rates for accumulated contributions. The current interest rate is 3%. Trustee Wood requested that Attorney Lane contact the Board's actuary for information on current rates of interest that can be used. Ms. Angela Bennett stated that long-term rates should be considered when amending the interest rate. Ms. Bennett expressed concern about tracking and computing accumulated contributions with different rates. Trustee Wood suggested a clause in the Retirement Ordinance to allow the interest rate to be periodically set by resolution. Changes could be made based upon research at particular times. Attorney Ken Lane updated the Police and Fire Retirement Board that Mondrian Investment plan contacted the Retirement Office with changes to their confidential memorandum. Attorney Lane reviewed the documents and reported that the changes are procedural and would not alter the contract. He had no issues with the document. Mondrian also requested an updated tax identification number that can be.supplied by the Finance Department. Attorney Lane requested that the discussion for the Frequently Asked Questions document wait until Trustee Fabus returned Karen Williams distributed and discussed the Post Retirement Benefit Adjustment sample. The sample details the change in a retiree's pension due to the Post Retirement Benefit adjustment over a ten year period. Karen Williams received a request from a retiree who selected a sibling as their pension beneficiary. Due to the recent Supreme Court ruling that legalizes same- sex marriages, the retiree has requested to name their spouse as their beneficiary. At the time of retirement, same-sex marriages were not legal in Michigan. Attorney Ken Lane opined that the Retirement Board does not have the authority to allow changes to the beneficiary selection after retirement. Regular Meeting July 21, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Wood recommended that legal counsel send a letter to the retiree on behalf of the Board that details the Board's position, outlining the Ordinance, and provisions. Trustee Wood also inquired if the Board needs to make any changes to the Ordinance and/or it policies in light of the Supreme Court ruling legalizing same- sex marriages. Attorney Lane opined that the Board did not need to make any amendments. The Ordinance already allows spouses to be named as beneficiary. Trustee Oleson added item d to the agenda. Trustee Oleson requested an update on the actuarial data and inquired if all information had been sent to the Actuary. Ms. Angela Bennett indicated that all items had been submitted to the Actuary. The next stage of the process will be a review by the actuary and then he will contact the Retirement Office and Finance with his questions regarding the submitted data. Karen Williams reviewed the Monthly Investment Report and the Securities Lending Report for the period ending June 30, 2015. It was moved by Trustee Good and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 5 -0. The meeting adjourned at 9:23 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 BOARD MEETING MINUTES Joint Meeting August 18, 2015 Council Conference Room Tuesday, 9:30 a.m.; —, 10th Floor City Hall Lansing, MI The meeting was called to order at 9:55 a.m. A quorum of the Police and Fire Retirement System Board was present. Trustees present: (ERS), Munroe, D. Parker, M. Parker, Wood-,4. (Police & Fire), Fabus, Oleson, Rose, St. Aubin, Wohlfert, Wood — 6. Others present: Karen Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group; Gregory Stump, Boomershine Consulting Group. Trustee Rose reported that the Arrivos Software has been put into production. The Board expressed appreciation to the Retirement Office for its work on the project. Trustee Rose also thanked the Board representatives and acknowledged the work of Dewpoint in assisting the project. Trustee Rose recommended maintaining the current contract with Dewpoint during the transition into production. Ms. Williams reported that the Retirement Office will begin the next stage of implementation with manual data migration, updating employee and retiree records. The Retirement Office will update active employee service records and contributions, with an estimated time frame of six months. The Retirement Office will continue to work with Tegrit to fine tune the system. Ms. Williams also recommended that the Special Projects subcommittee meet to determine placement of the website estimator on the Retirement site. The Employees Retirement System Board Investment Policy Statement revisions would be voted upon at the official August meeting due to lack of quorum. The Retirement Office recommended $50,000 be transferred from the Northern Trust Securities Lending Accounts to the Police and Fire Retirement System Board and the Employees Retirement System administrative accounts for expenses through September 30, 2015. Joint Meeting August 18, 2015 Council Conference Room Tuesday, 9:30 a.m. 10th Floor City Hall Lansing, MI Page 2 It was moved by Trustee Wood and supported by Trustee Olson for $50,000 to be transferred from the Northern Trust Securities Lending Accounts to the administration accounts for expenses through September 30, 2015. Adopted by the following vote: 6-0 The Police and Fire Retirement System Board recommended the first week or second week of November as dates for the due diligence trip to Chicago to see William Blair and Northern Trust. The Employees Retirement System Board will discuss dates to provide to Asset Consulting group at its August meeting. Adopted by the following vote: 6 — 0. Mr. George Tarlas of Asset Consulting Group reviewed the Quarterly Performance reports for the 2nd quarter of 2015. Mr. Tarlas discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending June 30, 2015. Mr. Tarlas reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Tarlas reviewed the July monthly financial report and indicated that the portfolios have performed well due to its diversification. He recommended further diversification and planned to discuss options during trustee education sessions. There were no public comments. The meeting adjourned at 11:13 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting August 18, 2015 «- Council Conference Room Tuesday, 8:30 a.m. rJ 10th Floor, City Hall t. Lansing, MI '; The Board was called to order at 8:31 a.m. Present: Trustees Fabus, Oleson, Rose, St. Aubin, Wohlfert, Wood— 6. Absent: Trustee Bernero, Good Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Mr. Gregory Stump, Boomershine Consulting Group. It was moved by Trustee Oleson and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of July 21, 2015. 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: 335. 3 death(s), Merle V. Anderson, Fire, died 7/15/2015, age 86, spouse to receive 50%; Flora Mae Novello, died 7/17/2015, age 87, beneficiary of IAFF Retiree; Wayne L. Templer, Fire, died 7/10/2015, age 73, 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 July 2015 amounted to $2,412,256.79. Total retirement checks printed for the P&F System: 711. Total retirement checks printed for both systems: 1627. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no requests for Applicants for Regular Age & Service Retirements. There were no requests for duty disability. Ms. Williams indicated that Applicant # 2015-PO512 has been scheduled to see the medical director. Regular Meeting August 18, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reminded members of the upcoming MAPERS Fall Conference and the NCPERS Public Safety Conference. Ms. Williams indicated that members who wished to attend should contact the Retirement Office. Karen Williams reported that Trustee Good contacted the Retirement Board and indicated that she would not be at the August meeting. Attorney Lane reported that the City Attorney's Office is waiting for the completion of the collective bargaining process to finish the Police and Fire Retirement Ordinance. Attorney Lane indicated that Northern Trust has a hearing on August 5 regarding the appropriateness of the settlement. The Retirement Board should receive information shortly regarding the settlement. Attorney Lane recommended that the Frequently Asked Questions document be reviewed by the Police and Fire Retirement Board before it is distributed. Attorney updated the Police and Fire Retirement Board regarding a request from a retiree who selected a sibling as their pension beneficiary. Due to the recent Supreme Court ruling that legalizes same-sex marriages, the retiree has requested to name their spouse as their beneficiary. At the time of retirement, same-sex marriages were not legal in Michigan. Attorney Lane and the City Attorney's Office reviewed Michigan Law, Retirement Ordinances and collective bargaining agreements regarding the issue. Attorney Lane opined that the Police and Fire Retirement Board were not prohibited from changing its policy to allow a small window for retirees affected by the Supreme Court Ruling to change beneficiaries. The Board discussed issues that could arise from allowing retired members to change beneficiary. Trustee Wood inquired if the policy amendment could be considered discriminatory if only certain members are allow to change Trustee Rose inquired if the original beneficiary would have legal standing if a change would occur. Trustee Oleson inquired if there was a deadline for the decision. He recommended that the Police and Fire Retirement Board perform its due diligence and contact MAPERS and NCPERS for further investigation and research. Attorney Ken Lane stated that he would conduct additional research and report back to the Board in September. Regular Meeting August 18, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Ken Lane provided an update of its opinion regarding contract employees. He indicated that he will present the official opinion and summary analysis next week at the ERS meeting. The issues are governed by the Internal Revenue Service code regarding retirement distributions. A 2010 IRS opinion details regulations for retirees who return as contract employees that involve issues of timing, mutual understanding, and job description. Attorney Ken Lane reviewed the City contract language and reported that it complies with the IRS regulations. Trustee Oleson inquired what steps does the Police and Fire Board needs to take to ensure compliance with the IRS regulations. Attorney Lane indicated that the first step was to complete and distribute the legal opinion to the Boards and the City administration. Attorney Lane further indicated that the existing contract can be reviewed internally for compliance. Mr. Greg Stump, Boomershine Consulting Group presented the actuarial valuation for the Police and Fire Retirement System for the year ending 12/31/2014. Mr. Stump provided the current status of the system, discussed recent changes and the future outlook. Mr. Stump reviewed the current funding, cash flow and key valuation results. He discussed past plan participants, and current employees. Mr. Stump provided an overview of the changes from last year. He discussed the demographic experience, investment experience and benefit changes. Mr. Stump also informed the Police and Fire Board that an Experience Study review should be scheduled for 2016. Mr. Stump will provide a draft valuation for review at the Police and Fire Retirement Board's next meeting. The Board discussed the interest rate for accumulated contributions. Mr. Greg Stump inquired if there was an underlying reason for the change. He reviewed his experience with other municipalities and plans that have amended their interest rates. Mr. Stump has seen floating rates, rates tied to the consumer price index, or money market rates. He has seen rates from 0 -4%. Rates above that level would not be beneficial. Trustee Rose inquired if rates can be tied to the Board's assumed rate of the Consumer Price Index. Angela Bennett contrasted tying the interest rates to different benchmarks. The concern would be tracking and computing these variable rates. Regular Meeting August 18, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams reviewed the Quarterly Expense Report and the Securities Lending Report for the period ending July 31, 2015. It was moved by Trustee Rose and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 6 -0. The meeting adjourned at 9:47 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 - updated Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:31 a.m. ry Present: Trustees Fabus, Good, Rose, St. Aubin, Wood— 5. Absent: Trustee Bernero, Oleson, Wohlfert. -T t Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney;�(en Lane, Clark Hill Law Office (representing the Law Department). co Trustee St. Aubin requested a moment of silence in memory of fallen firefighter Dennis Rodeman. It was moved by Trustee Fabus and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of August 18, 2015. Adopted by the following vote: 5— 0 It was moved by Trustee Fabus and supported by Trustee Wood to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees' Retirement System Board meeting of August 18, 2015. 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, 6 retired. Total: Active membership: 329. 1 death(s), Gloria A, Sample, Fire, died 8/17/2015, age 79, spouse of IAFF 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 2015 amounted to $2,432,087.61. Total retirement checks printed for the P&F System: 716. Total retirement checks printed for both systems: 1631. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was move by Trustee Wood and supported by Trustee Rose to approve the following applicant for Regular Age & Service Retirements: Jon F. Daniels, Fire Department, 25 years of service credits, age 50, effective October 16, 2015. Adopted by the following vote: 5 -0 There were no requests for duty disability. Trustee St. Aubin appointed Trustee Good to the disability subcommittee. The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet regarding the medical report for non-duty applicant #2015- P0512 The Board resumed at 8:39 Trustee Fabus reported that the disability subcommittee had met and reviewed the medical report for non-duty applicant #2015-P0512. The disability subcommittee concurred with the Medical Director's opinion and recommended approval of the non-duty disability request. It was moved by Trustee Fabus and supported by Trustee Good to approve the Non-Duty disability of Applicant #2015 — P0512. Adopted by the following vote: 5 — 0. Karen Williams reminded members of the upcoming MAPERS Fall Conference and the NCPERS Public Safety Conference. Ms. Williams indicated that members who wished to attend should contact the Retirement Office. Karen Williams indicated the retirement estimator would be placed on the website for use by employees. There were no refunds of accumulated contributions. Trustee St. Aubin reported that he was contacted by Trustee Oleson and Trustee Wohlfert that they would not be at the September meeting. Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Wood and supported by Trustee Rose to excuse Trustee Oleson and Trustee Wohlfert from the September meeting of the Police and Fire Retirement System Board. Adopted by the following vote: 5 - 0. Attorney Lane reported that the City Attorney's Office was waiting for the completion of the collective bargaining process to finish the Police and Fire Retirement Ordinance. Trustee Wood reported that the contracts which have been negotiated have been approved by City Council. Attorney Lane indicated that Northern Trust had a hearing on August 5 regarding the appropriateness of the settlement. The Retirement Board should receive information shortly regarding the settlement. Attorney Lane distributed the updated Frequently Asked Questions document to members for final review. Attorney Ken Lane notified that the Police and Fire Retirement System Board that it has its contract with Dewpoint through December 31, 2015. Attorney Lane stated the monies allocated for the contract has not been exhausted and Dewpoint services can be utilized through the end of the year, if needed. Attorney Ken Lane also updated the Police and Fire Retirement Board regarding Tegrit's request to prepare a press release including the City of Lansing as one of its clients. Also, the request wanted to include the City of Lansing and its logo on the Tegrit website. Attorney Ken Lane requested a copy of the press release to be reviewed by the Retirement Boards prior to granting permission to use the City logo. Karen Williams reported that Trustee Fabus Police Trustee term was nearing completion at the end of the year. Ms. Williams distributed Police and Fire Retirement System Election guidelines and a posting of the election time frames. The Police and Fire Retirement Board discussed the due diligence visit to see Northern Trust and William Blair. Asset Consulting Group recommended November 4 -6 for the visits and the Board discussed travel by train. The Retirement Office will coordinate arrangement with Asset Consulting Group. Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams distributed the preliminary draft of the Police and Fire Actuarial Valuation Report for the period ending 12/31/2014 for review. Trustee Wood requested that Attorney Ken Lane send a letter to current Council Members who are up for elections regarding state law restrictions on accepting contributions from City of Lansing Retirement Board vendors or individuals providing service to the Boards.. Attorney Lane explained that Public Act 314 amendment that retirement system vendors cannot provide contributions to officials that would have influence or decision making regarding the City's Retirement Systems. Attorney Lane stated that would include the Mayor and City Council members. Attorney Lane updated the Police and Fire Retirement System Board regarding a request from a retiree who wished to change her pension beneficiary due to the recent Supreme Court ruling that legalizes same-sex marriages. The retiree has requested to name their spouse as their beneficiary. At the time of retirement, same-sex marriages were not legal in Michigan. Attorney Lane reported that the Retirement Board would need to amend its policy to allow certain retirees to change their beneficiary. The Retirement Ordinance and collective bargaining agreements would not need to be changed for future retirees. The Board discussed issues that could occur with amending its policy for certain retirees to change beneficiaries. Trustee Wood expressed concern that opening a small window for certain retirees and not others could be discriminatory. The Police and Fire Retirement System Board requested that legal counsel provide a letter to the retiree detailing the provisions of the Ordinance, collective bargaining and its decision to maintain its current policy. Attorney Ken Lane provided an update of his opinion regarding contract employees. Attorney Lane stated that the administration had been made aware of the issues. He also informed the Board that the Human Resources Director was reviewing information brought to her attention and working with Departments on finding permanent solutions. Trustee Wood indicated that although the administration had been notified on paper, she inquired about the process to review existing contracts where there may be issues. Trustee St. Aubin inquired about the Board's fiduciary responsibility to the plan. Attorney Ken Lane opined that the Board had provided its fiduciary due diligence by making the administration aware of the problem. Trustee St. Aubin requested that the item regarding contract employee remain on the agenda in order to receive an update of the administration's response to the issue. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of August 2015. It was moved by Trustee Rose and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 9:21 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM - updated Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall C) Lansing, MI The Board was called to order at 8:31 a.m. Present: Trustees Fabus, Good, Rose, St. Aubin, Wood— 5. Absent: Trustee Bernero, Oleson, Wohlfert. Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). Trustee St. Aubin requested a moment of silence in memory of fallen firefighter Dennis Rodeman. It was moved by Trustee Fabus and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of August 18, 2015. Adopted by the following vote: 5— 0 It was moved by Trustee Fabus and supported by Trustee Wood to approve the Official Joint Minutes of the Police and Fire Retirement System Board and the Employees' Retirement System Board meeting of August 18, 2015. 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, 6 retired. Total: Active membership: 329. 1 death(s), Gloria A, Sample, Fire, died 8/17/2015, age 79, spouse of IAFF 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 2015 amounted to $2,432,087.61. Total retirement checks printed for the P&F System: 716. Total retirement checks printed for both systems: 1631. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was move by Trustee Wood and supported by Trustee Rose to approve the following applicant for Regular Age & Service Retirements: Jon F. Daniels, Fire Department, 25 years of service credits, age 50, effective October 16, 2015. Adopted by the following vote: 5 -0 There were no requests for duty disability. Trustee St. Aubin appointed Trustee Good to the disability subcommittee. The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet regarding the medical report for non-duty applicant #2015- P0512 The Board resumed at 8:39 Trustee Fabus reported that the disability subcommittee had met and reviewed the medical report for non-duty applicant #2015-P0512. The disability subcommittee concurred with the Medical Director's opinion and recommended approval of the non-duty disability request. It was moved by Trustee Fabus and supported by Trustee Good to approve the Non-Duty disability of Applicant #2015 — P0512. Adopted by the following vote: 5 — 0. Karen Williams reminded members of the upcoming MAPERS Fall Conference and the NCPERS Public Safety Conference. Ms. Williams indicated that members who wished to attend should contact the Retirement Office. Karen Williams indicated the retirement estimator would be placed on the website for use by employees. There were no refunds of accumulated contributions. Trustee St. Aubin reported that he was contacted by Trustee Oleson and Trustee Wohlfert that they would not be at the September meeting. Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Wood and supported by Trustee Rose to excuse Trustee Oleson and Trustee Wohlfert from the September meeting of the Police and Fire Retirement System Board. Adopted by the following vote: 5 - 0. Attorney Lane reported that the City Attorney's Office was waiting for the completion of the collective bargaining process to finish the Police and Fire Retirement Ordinance. Trustee Wood reported that the contracts which have been negotiated have been approved by City Council. Attorney Lane indicated that Northern Trust had a hearing on August 5 regarding the appropriateness of the settlement. The Retirement Board should receive information shortly regarding the settlement. Attorney Lane distributed the updated Frequently Asked Questions document to members for final review. Attorney Ken Lane notified that the Police and Fire Retirement System Board that it has its contract with Dewpoint through December 31, 2015. Attorney Lane stated the monies allocated for the contract has not been exhausted and Dewpoint services can be utilized through the end of the year, if needed. Attorney Ken Lane also updated the Police and Fire Retirement Board regarding Tegrit's request to prepare a press release including the City of Lansing as one of its clients. Also, the request wanted to include the City of Lansing and its logo on the Tegrit website. Attorney Ken Lane requested a copy of the press release to be reviewed by the Retirement Boards prior to granting permission to use the City logo. Karen Williams reported that Trustee Fabus Police Trustee term was nearing completion at the end of the year. Ms. Williams distributed Police and Fire Retirement System Election guidelines and a posting of the election time frames. The Police and Fire Retirement Board discussed the due diligence visit to see Northern Trust and William Blair. Asset Consulting Group recommended November 4 -6 for the visits and the Board discussed travel by train. The Retirement Office will coordinate arrangement with Asset Consulting Group. Regular Meeting September 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams distributed the preliminary draft of the Police and Fire Actuarial Valuation Report for the period ending 12/31/2014 for review. Trustee Wood requested that Attorney Ken Lane send a letter to current Council Members who are up for elections regarding state law restrictions on accepting contributions from City of Lansing Retirement Board vendors or individuals providing service to the Boards.. Attorney Lane explained that Public Act 314 amendment that retirement system vendors cannot provide contributions to officials that would have influence or decision making regarding the City's Retirement Systems. Attorney Lane stated that would include the Mayor and City Council members. Attorney Lane updated the Police and Fire Retirement System Board regarding a request from a retiree who wished to change her pension beneficiary due to the recent Supreme Court ruling that legalizes same-sex marriages. The retiree has requested to name their spouse as their beneficiary. At the time of retirement, same-sex marriages were not legal in.Michigan. Attorney Lane reported that the Retirement Board would need to amend its policy to allow certain retirees to change their beneficiary. The Retirement Ordinance and collective bargaining agreements would not need to be changed for future retirees. The Board discussed issues that could occur with amending its policy for certain retirees to change beneficiaries. Trustee Wood expressed concern that opening a small window for certain retirees and not others could be discriminatory. The Police and Fire Retirement System Board requested that legal counsel provide a letter to the retiree detailing the provisions of the Ordinance, collective bargaining and its decision to maintain its current policy. Attorney Ken Lane provided an update of his opinion regarding contract employees. Attorney Lane stated that the administration had been made aware of the issues. He also informed the Board that the Human Resources Director was reviewing information brought to her attention and working with Departments on finding permanent solutions. Trustee Wood indicated that although the administration had been notified on paper, she inquired about the process to review existing contracts where there may be issues. Trustee St. Aubin inquired about the Board's fiduciary responsibility to the plan. Attorney Ken Lane opined that the Board had provided its fiduciary due diligence by making the administration aware of the problem. Trustee St. Aubin requested that the item regarding contract employee remain on the agenda in order to receive an update of the administration's response to the issue. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of August 2015. It was moved by Trustee Rose and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 9:21 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting October 13, 2015 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 Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood—J Absent: Trustee Bernero. It was moved by Trustee Fabus and supported by Trustee Wohlfert approve the Official Minutes of the Police and Fire Retirement System Board Meeting of September 15, 2015. Adopted by the following vote: 7— 0 Mr. Chris Lake, IAFF expressed appreciation to the Police and Fire Retirement System, legal counsel and the citizens of Lansing for their support regarding the death of Mr. Dennis Rodeman. 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: 326. 3 death(s), Celia Hildenbrand, Fire, died 9/8/2015, age 88, spouse of IAFF retiree; Carl Rinckey, Fire, died 9/23/2015, age 80, spouse to receive 50%; James Scheidt, Fire, died 9/7/2015, age 75, 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 September 2015 amounted to $2,431,011.67. Total retirement checks printed for the P&F System: 715. Total retirement checks printed for both systems: 1630. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. The Police and Fire Board will wait for additional information regarding death in line of duty benefits for fire members at the request of the family. It was move by Trustee Rose and supported by Trustee Wood to table the following applicant for Regular Age & Service Retirements: Dennis Rodeman, Fire Department, 6 years, 10 months of service credit, effective September 8, 2015 (Death in the Line of Duty). Adopted by the following vote: 7 -0 Regular Meeting October 13, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was Trustee Oleson and supported by Trustee Good to approve the following applications for Regular Age and Service Retirements: LeAnn Garver, Fire Department, 25 years of service credit, effective October 24, 2015. Christopher J. Magnus, Police Department, 14 years, 1 month of service credit, effective November 1, 2015. (From Deferred) Adopted by the following vote: 7 — 0. There were no requests for Duty Disability Retirement. There were no requests for Non Duty Disability Retirement. Trustee St. Aubin provided his oral MAPERS Fall Conference Report. Trustee St. Aubin attended the workshop sessions regarding actuarial, legal , and economic issues. Trustee St. Aubin noted that Dr. Elliot Eisenberg session, "Will the Economy Stand Up?" was one of the best session of the conference. Trustee Oleson reported that he enjoyed the Trustee Development Seminar and the economy session at the MAPERS Fall Conference. Trustee Wohlfert appreciated the networking opportunity and also enjoyed the Elliot Eisenberg session. He reported that Dr. Eisenberg has an email blog service that he signed up for. Trustee Good also attended the same MAPERS Fall Conference and concurred with the comments of the trustees who attended. Trustee Good also attended the health care session and found the material informational. Trustee Fabus attended the MAPERS Fall Conference and discussed the presentation by Greg Stump. Trustee Fabus appreciated that Mr. Stump could simplify that language and actuarial terms. Trustee Fabus also signed up for Dr. Eisenberg's blog. NCPERS Public Safety Conference registrations should have been received for members who are attending. Karen Williams reported that the Due Diligence Visit has been scheduled for November 4 -6. Trustees will visit William Blair and Northern Trust. Travel arrangements and lodging will be coordinated with Asset Consulting Group Regular Meeting October 13, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three There were no refunds of accumulated contributions. Mr. Chris Lake, IAFF reported that four Fire members have not received pension service credits from their hire date. Mr. Lake stated that 24 members were hired last year. Mr. Lake contacted Human Resources and the Retirement Office regarding the four members who were not paying contributions into the retirement system and did not receive service credits. The four members were not sworn until the following year. Mr. Lake questioned if these members who were in training should have received service credits from date of hire, not the sworn date. Attorney Lane reported that he attended the legislative breakfast at the MAPERS Fall Conference. He noted that SB 102 would affect the State Teachers Union and would switch them from a hybrid Defined Benefit/Defined Contribution Plan to a Defined Contribution Plan. Attorney Lane also reported that HB 4522/4523 to expand subpoena powers of the Senate Oversight Committee to attain non-public records from public bodies throughout the state. Attorney Lane stated that public pension systems would fall under this bill. Attorney Lane reported that there was no revised draft from City Attorney's Office for the Police and Fire Retirement Ordinance. Attorney Lane stated that he will distributed updated Frequently Asked Questions document to members for final review. Trustee Wood reported that the FOP Supervisory contract was approved by City Council. Trustee Wood noted that the Council had the final contract before the members and it could be ready for publication and to the website within weeks. Trustee Wood also noted that the contract had been ratified but was brought to Council after all the amendments had been finalized. The FOP Non-Supervisory and the IAFF contracts have not been finalized. Attorney Ken Lane provided an update of his opinion regarding contract employees. Attorney Lane stated that he has been in contact with Human Resources Department and will have a report at the next meeting. Karen Williams reported that questions were brought to the Retirement Office regarding death in the line of duty benefit provisions for unborn children. Regular Meeting October 13, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Ken Lane explained that there is some case law regarding unborn children that could be presented to the Police and Fire Board to review and vote upon. Under the Ordinance, dependent child has been defined. Attorney Lane opined that dependent child is a surviving child that receives 50% economic support from their parent. The current Fire benefit provision does not designate dependent child. There is case law that recognized an unborn child at the death of the parent and could be used to craft a Board policy. Attorney Lane noted that there were discussions to amend the Fire Death in the Line of Duty Benefit Provision. Attorney Lane reported that proposed Fire provisions would be similar to the Police Death in the Line of Duty provision. Police provisions do not provide child benefits if there was a surviving spouse. Trustee St. Aubin requested that the Death in the Line of Duty provisions be moved to pending for additional information form legal. Trustee St. Aubin recommended the Police and Fire Board create a policy that will ensure service credits. Trustee St. Aubin stated that it was brought to his attention that some members are taking leave without having the appropriate leave balances. He expressed concern that members could have break in service due to suspension or unpaid service . He wanted to create a policy in which the City would notify the retirement system when a member has unpaid leave balances and does not earn service credit. Trustee St. Aubin expressed concern that a member could retire with less than 25 years of service, if break of services are not known. Karen Williams explained how the Retirement Office uses payroll records to track service credits for members. Karen Williams explained that the new system going forward tracks service credits. Trustee St. Aubin inquired if Michelle Burkhardt's separation of service was counted in determining her retirement benefit. Karen Williams verified that the break in service was not counted and no service credits were provided for that time. Trustee Wohlfert inquired about the four members who did not start accruing service credits until this year. He inquired if members would need to purchase time for the service credits that were not earned last year. Trustee St. Aubin indicated that employees of the Police department must be sworn before they are members of the Police and Fire Retirement System. Regular Meeting October 13, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Attorney Ken Lane reported that the Retirement Ordinance stated the definition of police officers and firefighters indicated that the member must be sworn. Attorney Lane stated that the current Ordinance was restated and members in the System prior to the re-statement may be grandfathered. Trustee Oleson inquired where does past practice apply. Attorney Ken Lane stated that past practice applies when there are gray areas regarding the issues. The Retirement Ordinance clearly provides a definition for police officers and firefighters. Trustee Rose stated that collective bargaining would be important in determining when these four members accrue service credits. Attorney Ken Lane will research the information and provide an opinion on when a member accrues service credits. Trustee Wood reminded members that trustees met with union leadership and reviewed the Retirement Ordinance line by line before it was re-stated. Trustee Wood inquired if changes in the FOP Sup contract could be added to the actuarial valuation. Trustee Wood had additional changes for the valuation. Ms. Bennett stated that the contract language could be added to the valuation and indicated that the Finance Department is reviewing the valuation. The Police and Fire Retirement Board will contact Boomershine Consulting Group with its changes to the draft. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of September 2015. Trustee Fabus inquired if other members had been charged for their rooms on their personal credit card. Trustee Fabus explained that he provided his personal credit card for incidentals and he now has the full room charge on his statement. Ms. Williams indicated that she contacted the hotel regarding reversing the charges. All lodging was prepaid by the Retirement Board. Trustee St. Aubin requested members to contact either the chair or vice chair at conferences to use the Retirement Board credit card for incidentals. It was moved by Trustee Wood and supported by Trustee Wohlfert to adjourn the meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 9:28 a.m. APPROVAL PENDING 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 t' Regular Meeting November 10, 2015 c �� Council Conference Room Tuesday, 8:32 a.m. 10th Floor, City Hall y c Lansing, MI The Board was called to order at 8:35 a.m. Present: Trustees Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood (9:10) — 7. Absent: Trustee Bernero. Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office); Chris Lake, IAFF, Captain Eric Weber, Fire. It was moved by Trustee Fabus and supported by Trustee Good to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of October 13, 2015. Adopted by the following vote: 7— 0 Mr. Chris Lake, IAFF discussed pension contributions that he believed were not consistent in what has been done in the past. He expressed concern that some of the new firefighters did not receive service credits or pay contributions from date of hire. 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: 324. 1 death(s), Gloria A. Sample, Fire, died 8/17/2015, age 79, spouse of IAFF 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 October 2015 amounted to $2,438,453.73. Total retirement checks printed for the P&F System: 717. Total retirement checks printed for both systems: 1629. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Rose and supported by Trustee Wohlfert to remove from the table the request for Death in the Line of Duty retirement benefits for Dennis Rodeman for discussion. Adopted by the following vote: 6 — 0. Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams explained the current benefits under the Police and Fire Retirement Ordinance. Fire Death in the Line of Duty benefits include accumulated contributions, spousal benefits of 1/3 of the member's final compensation, child benefits would be '/4 of member's final compensation. Attorney Ken Lane reviewed a City Attorney opinion regarding Section 294.02(n) of the Police and Retirement Ordinance. The opinion discussed if under the current Ordinance, can the unborn child of a firefighter who died in the line of duty be eligible for a retirement allowance. The opinion also addressed if the Police and Fire Ordinance is amended in accordance with proper procedure, can the amended provision be applied retroactively. Attorney Lane also discussed that a memorandum of understanding could be applied retroactively to change the death in line of duty benefits. Attorney Lane outlined that the Police and Fire Board would by motion need to recognize Firefighter Rodeman's as death in the line of duty for the benefits under the Ordinance. The Police and Fire Retirement Board would also need to recognize the unborn child as a dependent for benefits. Retroactive changes in the duty death benefits could not eliminate or modify a retirement allowance to a vested beneficiary under state law. Attorney Ken Lane recommended that the Police and Fire Retirement Board draft a policy for unborn children. Trustee St. Aubin inquired if the child benefits could be tabled and if the Police and Fire Retirement Board could vote upon spousal benefits, pending a memorandum of understanding. Trustee St. Aubin expressed concern about the amount of time that has passed, waiting until a memorandum has been signed. The proposed memorandum's intent would be to amend the Fire collective bargaining agreement to be similar to the Police collective bargaining agreement for duty death benefits. Trustee Oleson stressed that he wanted to ensure that Firefighter Rodeman's widow and child receive all benefits that they are entitled to. Attorney Ken Lane recommended that the spousal and child benefits be voted upon at the same time. Attorney Lane will prepare a policy regarding unborn child benefits. Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Rose and supported by Trustee Good to table the discussion regarding death in the line of duty for Firefighter Dennis Rodeman. Trustee Fabus offered a friendly amendment accepted by Trustee Rose that the discussion was tabled per request of the family and recommendation of legal counsel. Adopted by the following vote: 6 -0 There were no requests for Duty Disability Retirement. Karen Williams reported that the Retirement Office received a request for Non Duty Disability retirement for applicant #2015-P1110. The request was referred to the disability subcommittee. It was moved by Trustee Fabus and supported by Trustee Wohlfert to refer applicant #2015-P1110 to be referred to the medical doctor. Adopted by the following vote: 6 - 0. Trustee Fabus provided his oral NCPERS Public Safety Conference Report. Trustee Fabus attended the workshop sessions regarding social security and emerging markets. Trustee Oleson reported that he had the opportunity to talk with Police and Fire trustees from all over the country. He also discussed the DROP workshop during the NCPERS Public Safety Conference. Trustee Wohlfert as a first time attendee enjoyed the workshop regarding "what fund trustees should understand," and economic markets. He enjoyed the educational opportunity. Trustee St. Aubin appreciated the NCPERS Public Safety Conference's focus on Police and Fire issues that included Social Security; public pension plans investment results, corporate governance and hedge funds. Trustee Good also attended the same MAPERS Fall Conference and concurred with the comments of the trustees who attended. Trustee Good also attended the health care session and found the material informational. Trustee St. Aubin was impressed with William Blair's operations and found the due diligence trip very informative. Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Rose discussed Northern Trust visit. Trustee Rose was able to see the operations, visit the center that dealt with class action lawsuits and monitoring. At. William Blair, he was able to talk to an analyst and see the trading floor and discuss securities issues. Trustee Rose also discussed the visit to the Federal Reserve during the due diligence visit. Trustee Rose stressed the importance on these types of visits. Trustee Good Fabus attended the Due Diligence visit to William Blair and northern Trust. Trustee Good found the visit with an analyst at William Blair informative and was review the process for securities trading. Trustee Wohlfert also attended the due diligence trip was enjoyed speaking with the William Blair analyst. He discussed how the analyst viewed different trades. He also enjoyed the visit to Northern Trust. Trustee St. Aubin will reach out to Asset Consulting Group for due diligence suggestions for next year. Karen Williams reported that the retirement office received the invoices for the annual membership dues for MAPERS ($100), NCPERS ($250), and IFEBP ($960 split evenly between ERS and Police and Fire Retirement Board). It was moved by Trustee Oleson and supported by Trustee Wohlfert to pay the annual membership due for MAPERS of $100, NCPERS of $250, and IFEBP of $960, which will be split with the Employees Retirement System. Adopted by the following vote: 7 — 0. Karen Williams reported that Mr. Pedro Valdez, Police Department had requested his accumulated contributions of $5,615.66. Mr. Valdez had separated from service and was not vested. Mr. Valdez submitted the appropriate withdrawal form for the refund of his accumulated contributions. It was moved by Trustee Fabus and supported by Trustee Good to approve the request for refund of accumulated contribution of $5,615.66 for Pedro Valdez of the Police Department. Trustee Wohlfert inquired if there was a time limit for former members to withdraw their contributions if they are not vested. The Retirement Analyst responded that the Retirement Ordinance allow five years from separation date. Adopted by the following vote: 7 — 0 Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Attorney Ken Lane distributed an updated Frequently Asked Questions for the Police and Fire Retirement System. Attorney Lane reported that he had not heard from Tegrit regarding the use of the Board's logo. Tegrit was to provide a press release to be reviewed by the Board. He indicated that Trustee Mark Parker of the Employees Retirement System had been in contact with Tegrit. Attorney Lane reported that in accordance with Public Act 314 and Board, the Police and Fire Retirement Board needs to create an annual budget for the upcoming year. Attorney Lane will draft a budget for Board review. Attorney Lane reviewed and distributed the City Attorney Opinion No. 96-25 that discussed Police trainees participation in the Policemen's and Firemen's Retirement System. Attorney Lane noted that the analysis applies to firefighter trainees as well as police officer trainers. The opinion from 1996 concluded that trainees are not members of the Police and Fire Retirement System until they become sworn officers. Trustee Oleson inquired regarding when the four members were sworn in, that did not pay contributions or receive pension service credits from their hire date. Trustee Oleson also inquired that if members were not sworn in, can those members make up their contributions. Captain Eric Weber was granted permission to speak on the issue. Captain Weber stated the administration has not applied the policy consistently from 1996 for the fire department. Captain Weber stated that members from previous classes started contributions from date of hire. Due to past practice, Captain Weber inquired if the Police and Fire Retirement Board could allow the four members to catch up their contributions from date of hire. Trustee Fabus inquired if this situation for the fire department could affect more members and what could be done by the Board. Trustee Fabus inquired if the Fire Department could determine when trainees are sworn compared to their hire dates. Mr. Chris Lake indicated that the swearing-in of trainees has also been inconsistent. Attorney Lane indicated that this Police and Fire Retirement System Board trustees have not allowed past practice to be implemented to correct issues. No exceptions have been made when there is a valid policy in place Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Trustee Rose stated that the issue needs to be remedied by collective bargaining, fire department and city administration. The Police and Fire Retirement Board cannot mandate how the administration solves this issue. As a trustee and fiduciary of the system, his responsibility is to maintain the system. Funds would need to be contributed for that time to make the system whole. Trustee Rose inquired if members could purchase service credits as an option. Trustee Wohlfert indicated that the he verified with the Retirement Office that members can purchase service credits after five years. Trustee Wood inquired if a trainee were to die, would they be eligible for retirement benefits. Attorney Lane indicated that the trainee would not be eligible for benefits under the Retirement Ordinance. Trustee St. Aubin indicated that he brought the issue to the Board because of members who were not getting paid. He wanted to make certain they were not getting service credits for time when contributions were not made. Trustee Wood expressed concern regarding the information provided to the retirement system from the administration. Trustee Wood wanted to verify sworn-in dates, and hire dates for members, and verify that members are not being approved for retirement without the proper service. The Police and Fire Retirement Board requested further research from Attorney Ken Lane and to draft a policy regarding the verification of service credits. The Police and Fire Retirement System Board reviewed the actuarial valuation report for period ending December 31, 2014. It was moved by Trustee Wood and supported by Trustee Fabus to accept the actuarial report for the period ending December 31 2014. Adopted by the following vote: 7 -0 Trustee St. Aubin left the meeting. Trustee Oleson presided Attorney Lane opined that the Police and Fire Retirement System should vote to maintain its current assumption rate and not be stepped down in accordance with the actuarial experience study as recommended by the Board's Actuary. Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Seven It was moved by Trustee Wood and supported by Trustee Good for the Police and Fire Retirement System to maintain its current assumption rate of return as recommended by the actuary. Adopted by the following vote: 6 -0. The Police and Fire Retirement System Board requested that Attorney Ken Lane review the SAS 70/Custody and Fund Services SOC 1 Report. He confirmed that there were no substantive changes to the report. It was moved by Trustee Wood and supported by Trustee Wohlfert to accept the Northern Trust Custody and Fund Services SOC 1 Report. Adopted by the following vote: 6 — 0. Trustee St. Aubin returned to the meeting and presided. Karen Williams distributed the election rules and updated the Police and Fire Retirement System Board regarding the Police Trustee Election. Karen Williams reported that were two nominating petition returned to the Retirement Office, so there would be an election held. Karen Williams requested a suspension of the rules so that the election could be held at the Retirement Office instead of the Police Department, and to approve the dates and times of the election. It was moved by Trustee Good and supported by Trustee Wood to suspend the rules for the election to be held at the Retirement Office instead of the Police Department, and to approve the dates and times of the election. Adopted by the following vote: 7 — 0. Trustee Fabus requested that the Police and Fire Retirement Board trustees review the current Election rules for the purpose of updating them at the next meeting. Trustee Fabus inquired if voting can be done electronically for future elections. Karen Williams reported that Gabriel Roeder has sent a proposed price of $3,100 for updating the Minute Master. Trustee Wohlfert inquired about the purpose of minute master. Regular Meeting November 10, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Ms. Williams explained that Minute Master was an electronic history of the Police and Fire Retirement Board minutes, legal opinions and contracts. Gabriel Roeder and indexed and provided a searchable format that is password protected. Trustee Wood inquired if the new retirement software system could be used to create an electronic, indexed, searchable copy of Board documents. Karen Williams informed Trustees that she would contact Tegrit for information. I It was moved by Trustee Wood and supported by Trustee Dedic to approve the cost of $3,200 Minute Master services and to research if the Arrivos system can be updated to include Board documents. Adopted by the following vote: 7 — 0. Karen Williams distributed the 2016 Schedule of Meetings. Attorney Lane reported that City Attorney McIntyre was compiling the information and was preparing to come to the meeting to provide an update on the contract employee issue. Attorney McIntyre will send a written report if she cannot attend the meeting. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of October 2015. It was moved by Trustee Wood and supported by Trustee Wohlfert to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:56 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM And POLICE AND FIRE RETIREMENT SYSTEM BOARD MEETING MINUTES Joint Meeting November 19, 201'5 Council Conference Room Thursday, 9:30 a.m: 10th Floor City Hall W , Lansing, MI = The meeting was called to order at 9:36 a.m. A quorum of both the Employees Retirement System Board and Police and Fire Retirement System Board was present. Trustees present: (ERS), Dedic, Good, Munroe, D. Parker, M. Parker, Wood-6. (Police & Fire), Good, Oleson, Rose, St. Aubin, Wohlfert, Wood — 6. Others present: Karen Williams, Angela Bennett, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); George Tarlas, Asset Consulting Group; Gregory Stump, Boomershine Consulting Group; Charles Honey, Tod Childress, Private Advisors, LLC.. It was moved by Trustee Wood and supported by Trustee Oleson to excuse Trustee Fabus from the Joint Retirement Board November meeting. Adopted by the following vote: 6- 0. Ms. Angela Bennett discussed the Legacy Cost Study request for proposal document. The requested study would seek analysis and recommendations for potential ways to mitigate the cost and liability of its outstanding pension obligations and retiree healthcare and other post-employment benefits ("OPEB") obligations, both present and future. Ms. Bennett indicated that the ratio of retirees to employees is approximately 2:1. With pension costs associated with collective bargaining and health care increases, property tax declines, and reductions in revenue sharing, the City would like a comprehensive review of the system to allow the City to be pro-active in address rising pension contributions. The State of Michigan indicated that they would be willing to split the cost. Over the past ten years, the pension contributions have doubled between the two systems. The concern for the future over the next fifteen years is that the City may need to reduce services to make the pension contributions. Joint Meeting November 19, 2015 Council Conference Room Tuesday, 9:30 a.m. 10th Floor City Hall Lansing, MI Page 2 Trustee Dedic expressed concern that City services are threatened when discussing alternatives. Trustee Dedic inquired if the study will also look at the effect of reduction in revenue sharing and property tax incentives. Trustee Dedic discussed the changes implemented to improve the funding and reduce the liabilities as recommended by the Actuary. Trustee Wood indicated that the City Council has been told that the City would have the money to fund the changes in the recent current collective bargaining agreements. Trustee Wood also believed that there should be an analysis to review the effect of the property tax abatements. Trustee St. Aubin expressed concern regarding the lack of pre-funding of health care from previous City Administrations and the effect on the unfunded liability. Trustee St. Aubin expressed concern regarding administrations that have made changes to the Retirement System that adversely affected the system in the long term for current budget concerns. Trustee Oleson expressed about the direction and information that will be provided by the Study. Trustee Dennis Parker indicated that he is on the Lansing Financial Health Team. The proposed study will show that the pension system is well-managed, run efficiently and the changes made by the City's retirement boards to improve funding. Health care costs and lack of pre-funding from the City makes up much of the unfunded liability. Angela Bennett stated the Legacy Cost Study will provide recommendations for discussion. Mr. Charles Honey and Mr. Tod Childress provided a performance review of the retirement boards' investments with Private Advisors. The investment managers presented an overview of the Long/Short Equity Strategy, portfolio positioning and market environment. Mr. Honey and Mr. Childress discussed the investment process and risk management. Mr. George Tarlas of Asset Consulting Group reviewed the Quarterly Performance reports for the 3rd quarter of 2015. Mr. Tarlas discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending September 30, 2015. Mr. Tarlas reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Tarlas reviewed the October monthly financial report and indicated that the portfolios have performed well due to its diversification. There were no public comments. The meeting adjourned at 11:40 a.m. Minutes approved on Angela Bennett, Secretary Dennis R. Parker, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting December 15, 2105 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, Good, Oleson, Rose, St. Aubin (8:50) , Wohlfert, Wood (9:10) — 7. Absent: Trustee Bernero. Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office). Trustee Oleson presided. `- It was moved by Trustee Wood and supported by Trustee Good to approve the Official Minutes of the Police and Fire Retirement System Board Meeting.-of November 10, 2015. Adopted by the following vote: 6— 0 It was moved by Trustee Good and supported by Trustee Wohlfert to approve the Official Minutes of the Joint Employees Retirement System Board and the Police and Fire Retirement System Board Meeting of November 19, 2015. Adopted by the following vote: 6 - 0 Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 1 refund(s), 0 transfers, 2 retired. Total: Active membership: 322. 3 death(s), Peggy J. Backlund, died 11/19/2015, age 83, spouse of Police retiree; Stanley R. Burnett, Police, died 11/19/2015, age 91, spouse to receive 50%; Stephen T. Fraser, Fire, died 11/20/2015, no beneficiary. Refunds made since the last regular meeting amounted to $5,615.66. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of November 2015 amounted to $2,465,064.00. Total retirement checks printed for the P&F System: 720. Total retirement checks printed for both systems: 1634. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting December 15, 2015 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 Wood to approve the following applicants for regular age and service retirement: Jay Varney, Police Department, 10 years, 9 months of service credits, age 55, effective December 1, 2015. (From Deferred) Andrew Lawrence, Police Department, 10 years of service credit, age 55 effective January 1, 2016. (From Deferred) Wayne G. Umholtz, Police Department, 15 years of service credit, age 55, effective January 1, 2016 (From Deferred) Karen Williams reviewed the process for deferred retirements. Adopted by the following vote: 6 — 0. There were no requests for duty disability retirement. Non Duty Disability Applicant #2015- P1110 was pending. The applicant was sent a request for documents to send to the medical director. There were no requests for refund of accumulated contributions. Attorney Ken Lane amended the service credit policy to reflect the verification process. The policy would detail that members must be paid to receive service cred its. Trustee Fabus inquired how the amended policy would affect a member who was called to active military duty. Karen Williams explained the Retirement Ordinance section regarding how military active service is credited. Ms. Williams also described how the Retirement Ordinance currently calculates service credit using City payroll records. The Police and Fire Retirement System Board requested that legal counsel draft a service credit verification process in cooperation with the Retirement Office. Trustee St. Aubin arrived and presided over the meeting. Attorney Lane noted that the Police and Fire Retirement Ordinance is under review by the City Attorney's Office. Regular Meeting December 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Lane reported that he had not heard from Tegrit regarding the use of the Board's logo. Tegrit was to provide a press release to be reviewed by the Board. Attorney Lane verified that Tegrit has not used the City Logo on its website. He indicated that Trustee Mark Parker of the Employees Retirement System had been in contact with Tegrit. Attorney Lane presented the 2016 draft budget for the Police and Fire Retirement Board for review, and adoption at the January Meeting. Attorney Lane used the same amounts as last year's budget with some amendments for Tegrit maintenance, and eliminated Dewpoint. Attorney Lane noted in the budget that the Board's 2015 travel amounts were less than what is allowed by the State of Michigan. Karen Williams notified that Police and Fire Retirement Board that deadline for turning in nominating petitions for the office as Police Trustee had been November 10, 2015. Two petitions were received and certified by the Secretary of the Board. On December 7, 2015, the Secretary of the Board and the Retirement Office received a written withdrawal from Mr. Ryan Wilcox for further consideration as Police Trustee. In accordance with the Police and Fire Retirement Board rules and policy, since there was only one candidate remaining for the position, there was no General election held. Mr. Thomas Fabus filed a valid petition and was running unopposed. He was declared the winner for the office of Police Department Trustee for the five year term ending December 31, 2020. It was moved by Trustee Wood and supported by Trustee Wohlfert to receive the results of the Police Trustee Election for the Police and Fire Retirement Board naming Thomas Fabus to term ending December 31, 2020. Adopted by the following vote: 7 - 0 Trustee Wood inquired to legal counsel if Trustee Fabus needed to be sworn in by the City Clerk. Attorney Ken Lane indicated that Trustee Fabus should get sworn in by the January meeting. Karen Williams distributed amended Police and Fire Retirement Election rules for Board review. Regular Meeting December 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Fabus indicated that he would be interested allowing members vote electronically by email. Trustee Rose expressed concerned about the confidentially of the voting. He requested that legal counsel review state law. T Attorney Ken Lane will revise the election rules draft with the suggestions from the Board. Ms. Williams reported that she researched the potential of using existing retirement board software to maintain Board minutes and documents. Ms. Williams distributed information on the Arrivos Imaging Module. The module is a stand-alone product that could be integrated with the current system. Ms. Williams is waiting additional responses to her questions regarding cost and implementation. Trustee Rose suggested that the Police and Fire Retirement Board consider using the City of Lansing OnBase system. Trustee Rose believed the OnBase System could be used to maintain the Board's minutes and documents. Trustee Rose stated that he would contract the City Clerk's office to discuss how OnBase is used for clerk records. Trustee Wood expressed concern about access to the OnBase System. Angela Bennett reported that on November 25, 2015, $10,884.312 was transferred by the City to the Police and Fire Retirement System for the 2015 pension contribution. Ms. Bennett appointed that the contribution is 100% of the actuarially-determined contribution amount from the 12/31/2014 valuation. It was moved by Trustee Wood and supported by Trustee Wohlfert to accept the contribution of $10,884,312 that was transferred from the City of Lansing to the Police and Fire Retirement System for 2015. Adopted by the following vote: 7 - 0. Attorney Ken Lane reviewed the firefighter children's duty death benefit draft policy. The Policy would recognize an unborn child of a firefighter who died in the line of duty in order to be eligible for a retirement allowance. Attorney Lane explained the conditions in the policy are consistent with the Retirement Ordinance and bargaining agreements. Regular Meeting December 15, 2015 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five It was moved by Trustee Oleson and supported by Trustee Wohlfert to accept the Firefighter Children's Duty Death Benefit draft policy. Trustee Wood inquired if the policy was consistent with state law. Attorney Lane confirmed that the policy was supported by state legislation. Adopted by the following vote: 7 — 0. Attorney Lane reviewed the Police and Fire Ordinance regarding the steps to recognize the death in the line of duty. It was moved by Trustee Oleson and supported by Trustee Wohlfert to recognize Firefighter Dennis Rodeman's death as in the line of duty. Adopted by the following vote: 7 - 0. It was moved by Trustee Wood and supported by Trustee Good to move off the table from November 10, 2015, the request for death in the line of duty retirement benefits for Firefighter Dennis Rodeman. Adopted by the following vote: 7 -0 It was moved by Trustee Wohlfert and supported by Trustee Good to accept the Request for death in the line of duty retirement benefits for Firefighter Dennis Rodeman. Adopted by the following vote: 7 -0. Trustee Fabus expressed his appreciation for the hard work of the trustees and legal counsel regarding Firefighter Rodeman's retirement. Attorney Lane reported that City Attorney McIntyre was compiling the information for a written report providing an update regarding contract employees. The City Attorney Office has been analyzing existing contract and contacting departments to review contracts to ensure that they comply with IRS rules. Attorney Lane recommended if the report was not received at the next meeting, the Police and Fire Retirement Board could send a request for status letter. Trustee St. Aubin reported that Asset Consulting Group (ACG) contacted him about the departure from William Blair of one of the analysts that the retirement boards met at the due diligence. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of November 2015. Trustee Fabus inquired if the Retirement Board are planning for due diligence and education with Asset Consulting Group. Trustee St. Aubin indicated that he contacted ACG regarding due diligence visits for 2016, and recommended September for the visit. t was moved by Trustee Rose and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:56 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System