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HomeMy WebLinkAbout2016 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 19, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:34 a.m. Present: Trustees Fabus, Oleson, Rose, St. Aubin, Wood — 5. " 7j Absent: Trustee Bernero, Good, Wohlfert r� Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark` Hill' (representing the City Attorney's Office). g It was moved by Trustee Fabus and supported by Trustee Oleson to approve:fihe Official Minutes of the Police and Fire Retirement System Board Meeting of December January 19, 2016. Adopted by the following vote: 5— 0 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: 321. 1 death(s), Robert Spalding, died 12/19/2015, age 87, 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 2015 amounted to $2,445,396.08 . Total retirement checks printed for the P&F System: 717. Total retirement checks printed for both systems: 1632. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no applications for Regular Age & Service Retirement. Karen E. Williams reported that Applicant #2016-F0119 requested a Duty Disability Retirement. The request was referred to the disability subcommittee. The Police and Fire Retirement Board recessed to allow the disability committee to meet at 8:37 The Police and Fire Retirement Meeting resumed at 8:39 a.m. Regular Meeting January 19, 2016 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 begin the duty disability process to send the applicant to the medical director for evaluation. Adopted by the following vote: 5 — 0 Karen E. Williams was reported that documentation was received from Applicant #2015-P1110. The documentation will be forwarded to the Medical Director for review and scheduling. Karen E. Williams reported that there was a MAPERS One Day Conference scheduled for March 4, 2016. She requested that members who wished to attend should contact the Retirement Office. Trustee St. Aubin reported that he contacted Asset Consulting Group for a training, education and due diligence visit for September. Trustee St. Aubin announced that the City Council Ways and Means Committee have scheduled Greg Stump, Boomershine, to review the actuarial valuation for the period ending 12/31/2014. Trustee Wood indicated the importance of having the Actuary review the valuation so that Council has a better understanding of the pension system, its assets and liabilities. Trustee Wood noted the reporting changes in GASB and how health care liabilities have been lumped in with the pension in many discussions. There were no requests for refund of accumulated contributions. It was moved by Trustee Oleson and supported by Trustee Fabus to excuse Trustee Wohlfert from the Police and Fire Retirement Board January meeting. Adopted by the following vote: 5 — 0. Attorney Ken Lane distributed the amended the service credit policy to reflect the verification process. The policy details that members must be paid to receive service credits. Attorney Ken Lane added additional language regarding how military time is accounted for. Attorney Lane requested additional time to meet with the new Human Resources Director regarding the verification process. Attorney Ken Lane distributed the duty death policy adopted by the Police and Fire Retirement Board. Regular Meeting January 19, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Ken Lane reported that he provided a response to Ms. Bartholomew who requested to change her beneficiary to her spouse. At the time of the retirement election in 2005, same-sex marriage was not recognized. Attorney Lane opined that the retirement board could not retroactively change a retirement election in that was in effect. Trustee Wood inquired about an update for the Police and Fire Retirement Ordinance. Attorney Lane reported that Attorney Roberts of the City Attorney's Office stated that the Ordinance was close to completion. Attorney Lane presented the 2016 draft budget for the Police and Fire Retirement Board for review, and adoption. Attorney Lane indicated the Employees Retirement Board recommended amendments for Tegrit maintenance for data migration. Trustee Wood requested that the allocated and actual expenses for 2015 are incorporated into the budget. Karen Williams also distributed information for electronic voting. The system would allow for anonymous voting. The Board requested additional information regarding pricing and a possible demonstration. Attorney Lane opined that the person who cast a vote could waive their confidentiality if voting by email. Karen Williams distributed the current subcommittee assignments for review. Trustee Wood inquired if there was a need for the Joint Ad Hoc Committee on Health Care. The Police and Fire Retirement System Board agreed to eliminate the Joint Ad Hoc Committee on Health Care. The 2016 Subcommittee Assignments: Disability Committee: Fabus, Good, St. Aubin, Wohlfert Investment Committee: Oleson, Rose Wohlfert, Wood Education Committee: Fabus, Oleson, St. Aubin, Wood Special Projects: Oleson, St. Aubin, Wohlfert, Wood, Legal Counsel, Ex-officio Karen Williams distributed the Asset Consulting Group 2016 Investment manager schedule for the Joint Retirement Board meeting. Trustee Wood inquired about the status of the contract employee update since there is a new Human Resources Director. Attorney Ken Lane indicated that he will check to see who would be working on the update from Human Resources. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of December 2015. Karen Williams indicated that the Comerica Account has a large amount of cash reserves and Asset Consulting Group has not recommended a quarterly cash flow withdrawal from the portfolio. Trustee Wood expressed concern regarding if the monies in Comerica was receiving interest. Trustee Wood recommended a threshold that would trigger money to be invested to the portfolio. Trustee Fabus requested a recommendation from Asset Consulting Group regarding what could be done with access cash. Trustee Oleson inquired how the monies would be allocated to the portfolio, lump sum or installments.. Karen Williams recommended $10,000 from the Securities Lending for the Board's Administrative Expenses. It was moved by Trustee Wood and supported by Trustee Rose to approve $10,000 from the Securities Lending Account for the Police and Fire Retirement Board Administrative expenses. Adopted by the following vote: 5 — 0. The meeting adjourned at 9:26 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System i OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 16, 2016 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 `-7. Absent: Trustee Bernero = C7., Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark'All (representing the City Attorney's Office), Gina Lee, Marie Rosicky, Fire retfr2es-.- It was moved by Trustee Oleson and supported by Trustee Good to approve--ther` Official Minutes of the Police and Fire Retirement System Board Meeting;" of`— January 19, 2016. Adopted by the following vote: 7— 0 Secretary's Report. 0 new fire member(s), 1 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total: Active membership: 319. 3 death(s), Dennis R. George, Fire, died 11/10/2015, age 68, beneficiary to receive 50%; Patricia A. Thomas, died 12/24/2015, age 75, spouse of Fire retiree; Russell S Holliday, Fire, beneficiary to receive 50%; died 2/3/2016, age 83, . Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of January 2016 amounted to $2,457,002.37. 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. It was moved by Trustee Wohlfert and supported by Trustee Good to approve the following applications for Regular Age & Service Retirement. Stephen H. Babcock, Fire Department, 21 years, 8 months of service credits, age 65, effective February 2, 2016. William A. Oberst, Fire Department, 25 years of service credits, age 54, effective February 19, 2016. Adopted by the following vote: 7 — 0. r Regular Meeting February 16, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Page Two Lansing, MI Karen E. Williams reported that the Retirement Office had received Applicant #2016-F0119 documents for his request for a Duty Disability Retirement. The Retirement Office is waiting for medical records from the City to forward to the medical director. Karen E. Williams was reported that documentation was received from Applicant #2015-P1110. The documentation will be forwarded to the Medical Director for review and scheduling. Karen E. Williams reported that there was a MAPERS One Day Conference scheduled for March 4, 2016. She requested that members who wished to attend should contact the Retirement Office. There were no requests for refund of accumulated contributions. Ms. Gina Lee, Fire retiree, informed the Police and Fire Retirement Board that she recently was informed by Comp One Administrators that her case was reviewed in August of 2015, returned to full duty with the information in Jantions, and uary 2016 that whilethe try ng to fill a as closed. Ms. Lee discovered prescription. Her prescription was denied. as hat Ms. Lee contacted the City's Worker's dical fCe tophesation Office and City's doctor, whovreviewledther David Mayne had submitted he files and determined that she was capable to return to firefighting with no limitations. Ms. Lee states that she never saw the City's doctor and she was never informed that her case was pethe C ty and to change the that she hadst tus returned and deny full duty. Ms. Lee inquired, if s legal fo benefits. Ms. Lee was informed that she could contest the decision made by Comp One. Ms. Lee contacted City Worker's Compensation Office and requested information regarding contesting a decision. Ms. Lee was told that she was could lose all her benefits if she lost the decision. Ms. Lee was concerned that she would lose her retirement pension and health care. Ms. Lee wanted to bring the issue to the Police and Fire Retirement Board's attention. Trustee Oleson stated that the retiree had not seen Dr. Roth for a determination. Therefore, Ms. Lee is entitled to continue to receive her pension and health from the City of Lansing Police and Fire Retirement System. Trustee Wood expressed concerned that there was a threat to terminate duty disability benefits with no notification to the Retirement Board. Regular Meeting February 16, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Page Three Lansing, MI Ms. Angela Bennett offered to accompany Ms. Lee to talk with the Human Resource Director to address the issues and review the process. Trustee Wood requested that Attorney Ken aFe be e Retiremend the t Boardview process and a report be brought back to the Police and Trustee St. Aubin indicated that Worker's Compensation is not a part of the Police and Fire Retirement System. Trustee St. Aubin expressed appreciation to Ms. Lee for bring the issue to the Board's attention. Trustee St. Aubin recommended that Ms. Lee bring her issue to the attention of City Council. Trustee St. Aubin stated that the Police and Fire Retirement Board still considered Ms. Lee to be disabled. Trustee St. Aubin stated that duty disability retirees are periodically sent to the Board's medical doctor for review. Trustee Rose expressed concern at there able to return no to d .notification from Worker's Compensation that Ms. Lee was deemed Attorney Lane explained that there are two separate tracks for Worker's Compensation and for duty disability Creetiee n a Police and Fire Retirement Board does not govern the Worker's Compensation te Trustee Wood expressed concern s doctoatstaltes thattor the retiree eeh is dhsableretiree T Trustee back to work and the Board Wood stated that questions would arise if there was an audit. Ms. Marie Rosicky also had issues with Comp One. Ms. Rosicky was informed that she would not be approved for another surgery because it was deemed not work related. Attorney Ken Lane updated the Police and Fire Retirement Board that the Ordinance is still pending final review from the City Attorney's Office. Attorney Ken Lane was unable to meet with the Human Resources Director to complete the service credit policy regarding the interface between the Retirement Office and Human Resources. Attorney Lane presented the 2016 draft budget for the Police and Fire Retirement Board for review, and adoption. It was moved by Trustee Fabus and supported by Trustee Wood to approve the 2016 Police and Fire Retirement Board budget. Adopted by the following vote: 7 — 0. Trustee St. Aubin requested with consent of the Board to add another item to the agenda regarding the fire death in the line of duty benefits. Trustee St. Aubin explained that he received an email from Michigan Planned Parenthood questioning the duty death benefits for the Rodeman's unborn child. Attorney Lane indicated that there is case law that support the child death benefits approved in the Police and Fire Retirement Board policy. Ms. Williams presented Quarterly Expenses Report and the Securities Lending Report for the month of January 2016. The meeting adjourned at 9:12 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 March 15, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:34 a.m. Present: Trustees Fabus (8:39), Good, Oleson (8:46), Rose, St. Aubin, Wohlfert, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office), Greg Stump, Boomershine Consulting Group. Trustee St. Aubin noted that Trustee Oleson was running late because Mr. Stump had car trouble. It was moved by Trustee Wood and supported by Trustee Rose to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of February 16, 2016. Adopted by the following vote: 5— 0 It was moved by Trustee Good and supported by Trustee Wohlfert to approve the Official Minutes of the Joint Police and Fire Retirement System and the Employees Retirement System Board Meeting of February 16, 2016. 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: 317. 4 death(s), Frances C. Heckaman, Police, died 1/18/2016, age 85, no beneficiary; Bonnie Kelly, died 12/16/2015, age 72, spouse of Fire retiree; Dorothy Lardie, died 2/18/2016, age 89, spouse of Fire retiree; Robert Nalett„ Fire, died 2/25/2016, no beneficiary. . 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 2016 amounted to $2,473,811.60. Total retirement checks printed for the P&F System: 719. 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 March 15, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Wood and supported by Trustee Good to approve the following applications for Regular Age & Service Retirement. Lukas I. Mironiuk, Jr. Police Department, 23 years, 10 months of service credits, age 55, effective April 2, 2016. Adopted by the following vote: 5 — 0. Karen E. Williams reported that documentation from Applicant #2016-F0119 and form Worker's Compensation has been received and submitted to the Medical Director for scheduling. Karen E. Williams was reported that Applicant #2015-P1110 has seen Dr. Roth and the board is waiting for the medical report. Karen E. Williams reported that MAPERS Spring Conference will be held May 20 — May 24, 2016. She requested that members who wished to attend should contact the Retirement Office. Karen Williams distributed an updated Travel and Business Expense Policy. The policy provides a new mileage reimbursement of 54 cents. There were no requests for refund of accumulated contributions. Trustee Fabus arrived to the meeting Attorney Ken Lane updated the Police and Fire Retirement Board that the Ordinance is still pending final review from the City Attorney's Office. Attorney Lane reported that he will become more involved with completing the Ordinance. Attorney Ken Lane met with the Human Resources Director to complete the service credit policy regarding the interface between the Retirement Office and Human Resources Director Riley will review the policy and report back to Attorney Lane. Attorney Ken Lane reported the election policy is pending. Trustee Fabus inquired about the mandatory retirement age of 60 for police department. New Members who start at a later age can only vest for health care with 25 years of service and may reach age 60 before that time. Regular Meeting March 15, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Attorney Lane stated the same retirement age requirement is listed in Public Act 345 and have been upheld in the past. Attorney Lane will review the requirement and report at the next meeting. Mr. Greg Stump presented a preview of the 2015 actuarial valuations and experience study. Mr. Stump reviewed the current funding status of the Police and Fire Retirement System. Mr. Stump the assets for retirees, active employees and cost profile. He provided an overview of the impact of 2015 investment returns and the change in funding outlook. Mr. Stump discussed what if scenarios for 2016, 2017 and five year projections. He discussed the upcoming valuation and an assumption review that will include retirements, terminations, mortality, economic assumptions, funding methods and policy. Mr. Stump discussed with the Board the impact of City position vacancies, and bargaining agreement changes on the funding level. Trustee Wood requested a date certain from Attorney Lane when the Police and Fire Retirement Ordinance would be completed. Attorney Ken Lane reviewed the Private Advisors agreement that reduces the management fee and had the paperwork available for the chairperson's signature. Karen Williams explained that at the Joint meeting, the retirement Boards requested that Trustee Good bring some options for Board consideration for monies in the Comerica account. Trustee Good reported that the spoke to Comerica regarding the retirement account. The current accounts received "earning credits" for the money in the account. Trustee Good stated that if the money transferred to the "J" interest- bearing account, the system would pay more in service fees. Trustee Good also provided information on certificates of deposits as an alternative option. Attorney Lane stated that transferring the monies to a "J" fund would be consistent with Police and Fire Retirement Board policy. The Police and Fire Retirement Board requested that Trustee Good information be forwarded to Asset Consulting Group for evaluation. Karen Williams also distributed a memo from Asset Consulting Group to use the excess cash in the Comerica account for portfolio rebalance. Asset Consulting Group recommended investing excess monies to Northern Trust Index, T. Rowe Price, Integrity and William Blair. Regular Meeting March 15, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Fabus and supported by Trustee Oleson to accept and approve the recommendation from Asset Consulting Group to invest $3,000,000 into the Northern Trust Index; invest $4,000,000 into the T. Rowe Price portfolio; invest $2,000,000 into the Integrity portfolio; invest $1,200,000 into the William Blair portfolio of the excess monies within the Comerica account. Adopted by the following vote: 7 — 0. Karen Williams reported that the Employees Retirement System had allocated $7,000 for temporary data entry person to assist with the manual data input to the Arrivos program, contingent upon approval from the Police and Fire Retirement System to share the cost. Trustee Good explained that due to the large volume of manual data entry, it would benefit the Board to get the project completed. Trustee Rose indicated that the Board had an earlier discussion regarding using temporary help with inputting the manual data. Trustee Oleson requested that the temporary help only work on the manual data input project. Trustee Wood requested a recommendation that would discuss the scope of services and projected timeframe. It was moved by Trustee Wood and supported by Trustee to amend the current Police and Fire Retirement System Annual budget to allocate and share the costs of $7,000 for a temporary data entry person to assist with the manual input.. Adopted by the following vote 7:- 0. Trustee Good stated that she would submit a critical needs request to begin the process. Trustee Good was asked to screen resumes and provide possible candidates for the position. Trustee Wood also requested information on the security and bonding of the candidates. Attorney Ken Lane also requested an updated W-9 form for Private Advisors. Attorney Lane updated the Retirement Board Contract employees. The Human Resource Director confirmed that notification had gone to all departments regarding contract employees. Info from the departments had been received. Director Riley request time to review the data and will give a report at the next Joint meeting. Ms. Williams presented Quarterly Expenses Report and the Securities Lending Report for the month of February 2016. The meeting adjourned at 9:51 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting May 10, 2016 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 Good, Oleson, Rose, St. Aubin (8:35), Wohlfert, Wood —6. Absent: Trustee Bernero, Fabus Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Wohlfert and supported by Trustee Good to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of April 19, 2016. Adopted by the following vote: 5— 0 Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 317. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of April 2016 amounted to $2,466,968.97. Total retirement checks printed for the P&F System: 719. Total retirement checks printed for both systems: 1633. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Wohlfert and supported by Trustee Wood to approve the following applications for Regular Age & Service Retirement: Ryan Cressman, Police Department, 20 years, 10 month of service credits, age 47, effective May 10, 2016(eligible to retire with 4 years , 5 months of reciprocal retirement service credit from City of Westland) Amanda J. McDonald, Fire Department, 18 years, 10 months of service credits, age 55, effective May 19, 2016 May 10, 2016 Regular Meeting Tuesday, 8:30 a.m. Council Conference Room 10th Floor, City Hall Page Two Lansing, MI It was moved by Trustee Wohlfert and supported by Trustee Wood to approve the following applications for Regular Age & Service Retirement (cont.): Patricio Medina, Fire Department, 25 years of service credits, age 52, effective May 23, 2016 (eligible to retire with 3 months of military service credit) Adopted by the following vote: 5 — 0. Karen E. Williams reported that the medical report for applicant ttee #2016-170119 had been received and was submitted to the disability s ubcommfor reew. Trustee Good reported that the disability subcommittety e mmet n dreviewed the medical director's report. The disal of bconcurrenche duty disability request for applicant with the medical director and approval #2016-F0119. orted by Trustee Wohlfert to approve the It was moved by Trustee Good and supp #2016-F0119. duty disability retirement request for Applicant Adopted by the following vote: 5 — 0. Trustee St. Aubin arrived to the meeting. Karen E. Williams reported that MAPERS Spring Conference will be held May 20 — May 24, 2016. She indicated that the Board can send a delegate to Conference business meeting for voting purposes. Trustee Eric Wohlfert volunteered to be a delegate at the MAPERS Spring Conference. There were no requests for refund of accumulated contributions. Attorney Ken Lane updated the Police and Fire a Reti e foentilr B carat the next that the Ordinance is has been completed and should bea meeting. Attorney Lane reported that the unions u ill eceioe Prr to Retirement ity I Ordinance for review in addition to Human Reso approval. Attorney Lane reported that he is providing further clarification for the service e to inquiries from the Retirement Office. credit policy du Regular Meeting May 10, 2016Tuesday, 8:30 a.m. Council Conference Room 10th Floor, City Hall Page Three Lansing, MI Karen Williams explained a member has foqua es Ir l cev credit,t,nces after the can eeffecdtive to achieve the 80 hour criteria required retirement date. f the Trustee St. Aubin inquired if cash settlements from raccident,accidents and outside sed tooadjustdthe uty disability should be reported, such as a retirement pension. the ees Attorney Lane reported that a similar q dtlthat based Was )sed upon in I ny the Retirement System. Attorney Laneopine Retirement Ordinance, cash settlements dicates that the annot be �come m as st come from income to adjust the pension. The plain language in either an occupation, business or employment. Attorney Lane reported that a settlement may include loss wages, medical expenses and or damages. Trustee Rose inquired if the portion of the settlement that is awarded for loss wages can be treated as income. Trustee St. Aubin stated that the Retirement Board should be informed regarding retiree settlement and requested recommendations. in Attorney Lane opined that the Board could provide that tlhe disab Iicy �y g comae constitutes income. Attorney Ken Lane recommended verification can be amended by policy to include income reported to the Internal Revenue Service (IRS). Trustee Wood requested that legal counsel draft an amended income verification policy for review. Poli Karen Williams reported that T. Rowe Price Wall be sent ra notification the to the olioce and Fire Retirement Board that the fee investment. T. Rowe Price has forwarded a fee agreement amendment to the contract. Attorney Lane reviewed the fee reduction agreement and informed that Board that it was ready to be signed by the chairperson. Karen Williams reported that Asset Consulting Group provided a Public Fund Transparency Letter for the Employees Retirement Board kno ledgement. The ith applicable letter detailed that Asset Consulting Group fts and entertainment of public officials laws, regulations and policies concerning g and public employees. May 10, 2016 Regular Meeting Tuesday, 8:30 a.m. Council Conference Room 10th Floor, City Hall Page Four Lansing, MI etailed that it anticipated that ACG may provide occasional The letter further d al and ordinary course of businean of m meals associated with the norm $25 to Trustees that requires ACG's attendance, at a cost that may g fro $100 per person per event. hat he spoke with Asset Consulting Group and Tru stee St. Aubin indicated t referred the letter to legal counsel for review. Attorney Ken Lane indicated the Employees Retirement System Board Board's Policy ohadubl n Ethic Policy and that the ACG amounts did not violate the Act 314. Karen Williams provided the annual DutyDisabilitynosubm submitted their Verification annual outside Five fire retirees and three police retirees had not income certification. The retiree will be sent a h disability i abil t letter.retirees' pens one Two respond, the Retirement Board may suspend the e di Y duty disability retirees are scheduled for age and service conversion. Tr ustee St. Aubin inquired if the certification forms and documentation qu red or the Duty Disability Income Verification indicated thejob the outside income. that the disabilitysubcommittee more frequently to Trustee St. Aubin indicated subcommittee would have the ability to investigate reported cases of fraud. The hire a firm that could perform the investigation. The Police and Fire Retirement Board discussed having duty disability retirees include their W-2s, 1099 forms, with their 1040 form Ka ren Williams showed a video demonstration of electronic etiup pro essat could be used for trustee elections. Karen Williams reviewed Kar en Williams provided an update of the Data Entry Project. Manual entry of retirement file data has started and good progress he{ebb been ptemb he project or all of the data entry and verification should be comp Y Attorney Lane reviewed the contract with the Personnel Agency pror. vided by A y were bonded. Trustee Good. He found that the employee and agency Hu man Resource Director Riley will provide an update regarding contract employees at the May Joint Meeting Ms. Williams presented Quarterly Expenses Report and the Securities Lending Report for the month of April 2016. It was moved by Trustee Wohlfert and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 9.26 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 June 21, 2016 N Regular Meeting Tuesday, 8:30 a.m. Council Conference Room s= 10th Floor, City Hall m Lansing, MI The Board was called to order at 8:36 a.m. a m —.. Present: Trustees Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wo ::0 c Absent: Trustee Bernero. ::R- Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Fabus and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of May 10, 2016. Adopted by the following vote: 7— 0 it was moved by Trustee Fabus and supported by Trustee Good to approve the Official Minutes of the Joint Employees Retirement System and Police and Fire Retirement System of May 12, 2016. Adopted by the following vote: 7 - 0 Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 3 retired. Total: Active membership: 314. 2 death(s), Ortensia M. Pavona, died 4/30/2016, age g903, pause of Fire use of Fire retiree; Katherine Cummings, died 5/1/2016, ag retiree. Refunds made since he System year)to-datear tlamoun ng amounted $0 00 the last reg $0.00. Reimbursements t Y amounted to Retirement allowances paid for the che checks printed for theP&F System $2,483,147.43. Total retirement 722. Total retirement checks Printed for pomesti b�ehat onssystems: orders6pending:D t0 ic relations order received: 0 Eligible domestic relations orders certified: 0. Regular Meeting June 21, 2016 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 Good to approve the following applications for Regular Age & Service Retirement: David Ankney, Fire Department, 25 years of service credits, age 53, effective June 18, 2016(eligible to retire with purchase of 2 months of universal service credit) Victoria D. Nevins, Police Department, 24 years, 1 month of service credits, age 55, effective June 18, 2016. Greg Vessel, Fire Department, Fire Department, 25 years of service credits, age 52, effective June 18, 2016 (eligible to retire with purchase of 9 months of universal service credit. Bryan P. Epling, Fire Department, 25 years of service credits, age 45, effective June 22, 2016 (eligible to retire with purchase of 2 months of universal service. Donald J. Hamilton, Fire Department, 26 years, 6 months of service credits, age 52, effective June 24, 2016. Michael P. Rose, Fire Department, 25 years of service credits, age 50, effective June 24, 2016 (eligible to retire with the purchase of 2 months of universal service) William W. Pawluk, Fire Department, 25 years of service credits, age 47, effective June 25, 2016 (eligible to retire with the purchase of 2 months of universal service credit). Arnold Rios, Fire Department, 20 years of service credits, age 55, effective June 25, 2016 (with the purchase of 3 months of universal service) James M. Whitney, Fire Department, 25 years of service credits, age 56, effective June 25, 2016 (with the purchase of 2 months of universal service). Michael A. Keith, Fire Department, 25 years of service credits, age 54, effective June 30, 2016 (eligible to retire with purchase of 1 month of universal service credit) Adopted by the following vote: 7 — 0. Regular Meeting June 21, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Trustee Rose provided his MAPERS Spring Conference Report. Trustee Rose discussed the safe harbor for retirees as contract employees. He discussed the workshop on fracking and its effect on natural gas prices. Trustee Wohlfert discussed his MAPERS Spring Conference attendance. Trustee Wohlfert also reported upon the safe harbor discussion, the actuary hour, and the comparison of Defined Benefit and Defined Contribution plans. Trustee Fabus gave his MAPERS Spring Conference Report. Trustee Fabus added that he found the workshop on fracking informative. He enjoyed the networking with the actuary. Attorney Ken Lane provided a legislative update from the MAPERS Spring Conference Report. Attorney Lane indicated that the IRS code is being reviewed and may be amended to provide a safe harbor for retirees as contract employees. The safe harbors would include the following retirees: Age 60 with five years of service Age 55 with 10 year of service Age + service that equal 80 or more Any age and 25 years of service. Attorney Lane reported that the Human Resources Director is working with the CityAttorney's office to ensure compliance with the current IRS code. Attorney Lane discussed HB 5438 that would provide a definition of base pay; HB4199 would eliminate severage pay for an employee who quits, SB 279 would mandate that union leave time would not be included as service credit. It only applies to public school employee; SB 892 would expand the definition of private equity. Trustee Oleson provided his NCPERS Annual Conference Report. Trustee Oleson attended workshops and panel discussion on GASB updates, pension reforms, social media, commodities, defined benefit plans, health care, code of conduct and real estate. Regular Meeting June 21, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Fabus and supported by Trustee Wood to approve the following request for accumulated contributions: Kyle S. Hein, Police, $15,996.77 Adopted by the following vote: 7 — 0. Attorney Ken Lane updated the Police and Fire Retirement Board that the Ordinance is has been completed. Attorney Lane that he received an email that indicated that Human Resources requested that they wanted to wait until the final drafts of collective bargaining agreements documents for Fraternal Order of Police, Supervisory and Non Supervisory. Trustee Wood indicated that City Council must have the amended Ordinances for review and approval within 90 days of the agreement ratification. Trustee Wood indicated to legal counsel that Human Resources should be made aware that they are in violation of the Ordinance. Attorney Lane reviewed the clarification of the service credit policy to allow banked time to be used for attain service credits. It was moved by Trustee Wood and supported by Trustee Rose to approve the Police and Fire Retirement Board amended Service Credit Policy. The Service Credit Policy shall replace and supersede all previous Service Credit Policy. Adopted by the following vote: 7 - .0. Attorney Lane opined that the Board could provide a policy regarding what constitutes income. Attorney Lane indicated that the Ordinance may be amended to include taxable income. He will prepare a draft for the Police and Fire Retirement Board review. Attorney Lane updated the Income Verification Form to include Federal tax form and W-2. Karen Williams reported that the Retirement Office has received a settlement from Northern Trust of$29,479.06 regarding the securities litigation Karen Williams reported that a duty disability member requested that the Retirement Board re-evaluate her income verification amount prior to her conversion to age and service. Ms. Williams sent Ms. Hillary a letter indicating that she was over by $3,917.57 and it would be split over two checks. Ms. Hilary indicated that her adjusted pension for the year instead of her normal pension allowance should be used for the calculation of the overage. The Disability subcommittee reviewed the duty disability list and provided a list of those members who will be re-examined this year. Karen Williams reported requested several dates for the due diligence visit to Asset Consulting Group (ACG) for last week for September. The Retirement Office will coordinate the visit with ACG. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of May 2016. The Police and Fire Retirement Board requested that the Northern Trust settlement be applied to the Comerica account for administrative expenses. It was moved by Trustee Oleson and supported by Trustee Wohlfert to adjourn the meeting. Adopted by the following vote: 7 -0 The meeting adjourned at 9:26 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 July 19, 2016 C7% Council Conference Room Tuesday, 8:30 a.m. '> 10th Floor, City Hall Lansing, MI C-- n The Board was called to order at 8:31 a.m. c a o C r •• MI Present: Trustees Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood —77. Absent: Trustee Bernero. Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the CityAttorney's Office). Trustee St. Aubin requested a moment of silence for the recent unrest throughout the nation. It was moved by Trustee Good and supported by Trustee Oleson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of June 21, 2016. Adopted by the following vote: 7— 0 Secretary's Report. 0 new fire member(s), 2 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 10 retired. Total: Active membership: 306. 2 death(s), Jack W. Gaukel, Fire, died 6/15/2016, age 88, spouse to receive 50%; Douglas E. Gregg, Fire, died 5/1/2016, age 86, no beneficiary. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of June 2016 amounted to $2,541,308.13. Total retirement checks printed for the P&F System: 731. Total retirement checks printed for both systems: 1645. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting July 19, 2016 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 Good to approve the following applications for Regular Age & Service Retirement: James Kraus, Police Department, 25 years of service credits, age 54, effective August 1, 2016. Derek A. Beiderwieden, Police Department, 17 years, 3 month of service credits, age 55, effective August 1, 2016. (From Deferred) Adopted by the following vote: 7 - 0 There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Karen Williams distributed agendas and registration material for MAPERS Fall Conference for September 17 - 20. Ms. Williams noted that there is no guest registration, but the hotel charges per person. Attorney Ken Lane updated the Police and Fire Retirement Board that the Ordinance is has been completed. Attorney Lane informed Human Resources and the City Attorney's Office that the Retirement Ordinance regarding the 90 — day requirement after City Council ratifies collective bargaining agreements. Attorney Lane distributed a proposed amendment to the Police and Fire Retirement Office to include all taxable income under the IRS code for disability retirement income verification.. It was moved by Trustee Oleson and supported by Trustee Good to approve the Police and Fire Retirement Ordinance amendment to include all taxable income under the IRS code for disability retirement income verification. Trustee Wood inquired if the amendment would be added to the current Ordinance or the proposed Ordinance being revised in the CityAttorney's Office. Attorney Lane indicated that he preferred to add the amendment to the proposed Ordinance update. Adopted by the following vote: 7- 0. Attorney Lane distributed a new income certification form for duty disability members. Regular Meeting July 19, 2016 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 Wohlfert to approve the new certification of annual earning form received by disability retirees. The form will replace and supersede all previous certification forms. Adopted by the following vote: 7 — 0. Attorney Lane updated the Police and Fire Retirement Board regarding if an active member can use their 457 deferred compensation monies while in service to purchase service credits. The current Retirement Ordinance does not allow in- service purchases from deferred compensation. Trustee St. Aubin inquired what needed to be done allow members to purchase in- service time with 457 deferred compensation monies. Attorney Ken Lane provided an update on contract employees. Attorney Ken Lane opinion regarding retirees as contract employees was adopted by the City Attorney's Office Attorney Lane reported that the Human Resources Director was working with the City Attorney's office to ensure compliance with the current IRS code. Karen Williams reported that the Retirement Office received tax forms from Mondrian to be updated. Attorney Ken Lane explained will review the forms and notify the chairperson. Angela Bennett reported that council staff requested that she bring to the Police and Fire Retirement Board an outstanding amount on a Boomershine bill. Ms. Bennett did not believe that the outstanding amount of $1710 was a retirement board expense. Trustee Wood indicated that the City Council did pay for the actuary's travel expenses. Trustee Wood reminded members that the Board discussed in advance bringing the actuary to present to City Council for education purposes, in light of the financial health team. Trustee Wood indicated that the preparation and materials were the same that was provided to Retirement Board. It was moved by Trustee Oleson and supported by Trustee Wood to pay the costs of the outstanding bill from the Police and Fire Retirement System and split the costs with the Employees Retirement System. Trustee Good stated that there needs to be a better understanding of the timing and costs in advance. Adopted by the following vote: 7 — 0. Regular Meeting July 21, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams reported the quarterly cash flow recommendations from Asset Consulting Group for $7.5 million. It was moved by Trustee Wood and supported by Trustee Oleson to approve the quarterly cash flow recommendation from Asset Consulting Group for $7.5 million. Adopted by the following vote: 7 — 0 Karen Williams reported that the due diligence visit to Asset Consulting Group was scheduled for September 26-27. The Retirement Office will work with ACG to coordinate the visit. Trustee St. Aubin contacted ACG. regarding the Brexit announcement and requested recommendation regarding the City of Lansing Police and Fire Retirement portfolio. Mr. George Tarlas of Asset Consulting recommended that no changes be made to the portfolio. Trustee Wood inquired if a hyperlink could be added to the Retirement webpage that links to the City Clerk's document on file page for Board minutes. Ms. Williams explained that the new City web site will be set up to house all the minutes in one location. The new retirement page has been set up to link to the new location. Current minutes will need to be uploaded separately. Ms. Williams presented Monthly Investment Report and the Securities Lending Report for the month of June 2016. Trustee St. Aubin received information that the TRowe Price equity index was undervalued. He asked if the Retirement Office had received any information from Asset Consulting group Ms. Williams will contact Asset Consulting Group to research the TRowe Price and provide a report. It was moved by Trustee Oleson and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 7 -0 The meeting adjourned at 9:10 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 September 13, 2016 Council Conference Room Tuesday, 8:30 a.m. v Ea 10th Floor, City Hall Lansing, MI The Board was called to order at 8:30 a.m. Present: Trustees Fabus, Good, Oleson, Rose, Wohlfert, Wood — 6. o"7 Absent: Trustee Bernero, St. Aubin. rr n cn Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill (representing the CityAttorney's Office). Trustee Oleson presided the meeting. It was moved by Trustee Good and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of August 16, 2016. Adopted by the following vote: 6 — 0 It was moved by Trustee Wood and supported by Trustee Fabus to approve the Official Minutes of the Joint Police and Fire Retirement System and Employees' Retirement System Board Meeting of August 16, 2016. Adopted by the following vote: 6 — 0. Secretary's Report. 16 new fire member(s), 2 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 4 retired. Total: Active membership: 321. 2 death(s), Leroy G. Leyrer. Fire, died 6/28/2016, age 88, no beneficiary; Pamela Ruppert, died 8/8/2016, age 59, spouse of Police retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of August 2016 amounted to $2,574,215.33. Total retirement checks printed for the P&F System: 733. Total retirement checks printed for both systems: 1651. Domestic relations order received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Regular Meeting September 13, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Ms. Williams indicated the 16 new fire members included the 13 members who were pending from August 2016. She is waiting for verification that the members have been sworn. There were no requests for Regular Age and Service retirements. There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Ms. Williams reviewed the hotel fees for the MAPERS Conference. Ms. Williams explained that due to the resort and other Mackinac fees exceeded the single room rate of $311.00 that was quoted in the MAPERS material. Ms. Williams indicated the single rate with fees and taxes were $401.38. Trustees would be responsible for guest amounts above the single rate. Trustee Wood wanted to be certain that the expenses paid were for the members only. Attorney Lane indicated that the policy indicates that room rates and fees would be only paid for the Trustee. It was moved by Trustee Wood and supported by Trustee Good to approve the increased payment of $401.38 to cover the single room rate for an individual trustee who plans to attend the MAPERS Fall Conference. Trustee Fabus stated that the increased fee structure for MAPERS should be addressed at the conference business meeting. Adopted by the following vote: 6 — 0. Karen Williams reported that the Board Policy required approval if the chair and more than 2 members wished to attend an out-of-state conference. It was moved by Trustee Wood and supported by Trustee Wohlfert to approve attendance for the chairperson and any Trustees who wished to attend the NCPERS Public Safety Conference. Adopted by the following vote: 6 - 0. Karen Williams reported that the Asset Consulting Group Due Diligence Visit was scheduled for October 3-4. The educational meeting will be held to discuss its Global Long/Short Equity investments and asset allocation portfolio strategy. There were no requests for refund of accumulated contributions. Regular Meeting September 13, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams reported that Trustee St Aubin contacted that Retirement Office for an excused absence. It was moved by Trustee Fabus and supported Trustee Wood to excuse Trustee St. Aubin from the September Police and Fire Retirement System Board meeting. Adopted by the following vote: 6 — 0. Attorney Ken Lane updated the Police and Fire Retirement Board that the Retirement Ordinance is still under review by the Human Resources Department. Attorney Ken Lane discussed that he would draft a letter for Retirement Board review. The letter could be copied to the Mayor and City Council requesting action and completion of the Retirement Ordinance. Attorney Ken Lane indicated that the actuarial report should be completed by the end of the month in accordance with Board Policy. Ms. Williams indicated that Boomershine Consulting Group will be at the next meeting. Attorney Lane updated the Police and Fire Retirement Board regarding a letter received by the chairperson from the attorney of a former police officer who has retired. The former employee is in litigation with the City of Lansing. The attorney requested that the Board adjust the former police officer's final average compensation to settle the lawsuit. Attorney Lane prepared a response to the letter that the Board did not have the authority to amend the final average compensation to settle the lawsuit. The Retirement Office contacted the Human Resources Department for the sworn dates for the new firefighters. Human Resources do not receive the sworn- in dates. The Fire Department indicates which members should have retirement contributions. Trustee Wood requested that the Retirement Office send a list of names to City Clerk and ask for the swearing-in dates. The sworn dates are needed to comply with the Retirement Ordinance. Ms. Bennett indicated that the Human Resources Department was working on having documentation regarding the sworn dates in the employee files. Attorney Lane stated that the Retirement Ordinance requires members of the Police and Fire Retirement System are sworn by the City Clerk. Trustee Rose recommended that the Joint Boards plan a due diligence visit to Tegrit Company's headquarters in Livonia, Michigan. Trustee Rose noted that Tegrit had changed ownership and he suggested that trustees go and view their facilities next spring. Trustee Rose has indicated that he has requested the item be placed on the joint agenda for November. Trustee Oleson stated to keep the Tegrit item on pending. Ms. Bennett updated to the Police and Fire Retirement Board regarding the Pension/Retirement Health Study. Ms. Bennett reported that the City has contracted with the Segal Group, based out of Chicago and Detroit, to prepare the study. They are in the data gathering stage and preliminary recommendations would be expected at the beginning of the calendar year. The goal on the pension side would be to review and evaluate the current benefits, and actuarial assumptions. Karen Williams distributed a list of retirement projects for the data clerk that included searchable minutes, replacing the Minute Master Service, electronic actuarial valuations, investment records filing. Trustee Wood suggested that the clerk's time should be allocated to temporary short term projects. Trustee Wood recommended filing the investment documents, scanning the actuarial reports, scanning of City Attorney Opinions to the R: Drive. She did not want the Board to pay for contract person for longer term duties. Trustee Rose agreed that the data clerks should be limited to the shorter term projects. Ms. Angela Bennett expressed concerned about indexing minutes in-house to replace Minute Master. Karen Williams distributed the posting for the Fire Department Trustee election to the Police and Fire Retirement Board. Trustee Oleson's term ends December 31, 2016. The new term of office would be for five years and will expire December 31, 2021. The posting will go out in October, with the nominating petitions due in November. Election will be in December. Trustee Fabus inquired if we would have electronic voting for the election. Ms. Williams presented the Quarterly Expenses Report and the Securities Lending Report for the month of August 2016. It was moved by Trustee Good and supported by Trustee Rose to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 9:28 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 e N Regular Meeting October 18, 2016 Council Conference Room Tuesday, 8:30 a.m. r1 fD 10th Floor, City Hall c� Lansing, MI r,, -nn The Board was called to order at 8:30 a.m. ` r� Present: Trustees Fabus, Oleson, Rose, St. Aubin, Wohlfert, Wood — 6. Absent: Trustee Bernero, Good. Others: Karen E. Williams, Angela Bennett, Finance Department; Greg Stump, Boomershine Consulting Group; Trustee Mark Parker, Employees Retirement System Board; Attorney Ken Lane, Clark Hill (representing the City Attorney's Office). It was moved by Trustee Fabus and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of September 13, 2016. Adopted by the following vote: 6 — 0 Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 324. 1 death(s), Richard Gleason, Police, died 9/22/2016, age 91, no beneficiary. 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 2016 amounted to $2,552,628.62. Total retirement checks printed for the P&F System: 731. Total retirement checks printed for both systems: 1643. Domestic relations order received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved by Trustee Fabus and supported by Trustee Wood to approve the following application for regular age and service retirement: Susan M. Baylis, Police, 25 years of service credit, age 47, effective Novemberl5, 2016. Adopted by the following vote: 6 — 0. Regular Meeting October 18, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Ms. Williams reviewed the hotel fees for the MAPERS Conference. Ms. Williams explained the single rate with fees and taxes were $401.38. Trustees would be responsible for guest amounts above the single rate. Trustee Fabus provided his MAPERS report regarding his attendance at the Fall Conference. He discussed the workshop presented by David Sowerby that detailed economic conditions in Michigan. Trustee Oleson attended the MAPERS Fall Conference and he enjoyed the Tim Skubick presentation that discussed the political environment. Mr. Skubick had attendees stand up if they could not name their state senator. Trustee Oleson attended workshops on retirement planning and the economy. Trustee Wohlfert reported that he attended the MAPERS Fall Conference and went to the website presentation. He noted the City's retirement page was reflective on the items recommended for websites. Trustee Rose provided his MAPERS Fall Report. He attended workshops that detailed trusts and custom wills. Attorney Ken Lane attended the MAPERS Fall Conference legislative breakfast. The MAPERS lobbyists did not think that HB 5438 would be taken up by the Michigan legislature. The MAPERS lobbyist did discuss a 40-bill package regarding pension reform that was being proposed. Trustee Rose believed that the pension reform package may have been drafted at this time. Attorney Lane reported that he would investigate the bills and provide draft if they are available. Trustee St. Aubin reported that he attended the MAPERS Fall Conference and enjoyed the networking opportunity. Trustee Rose provided his report of the Asset Consulting Group (ACG) Due Diligence visit. He reported that the visit was more intensive and included a discussion on equity long/short and an educational session on absolute return fixed income. Regular Meeting October 18, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Wohlfert attended the ACG Due Diligence visit and was impressed with the analysts who attended the equity long/short fun of funds managers' presentation with trustees. Trustee St. Aubin recognized Trustee Mark Parker of the Employees Retirement System Board who discussed the recommendation to terminate Private Advisors, Trustee Parker noted that the head of research had left Private Advisors. Trustee Parker also discussed possible absolute return fixed income scenarios and the direct access fund as a consideration for the boards. Karen Williams reminded members of the NCPERS Public Safety Conference. Karen Williams reported that the Board Policy required approval if the chair and more than 2 members wished to attend an out-of-state conference. Karen Williams reported that Mr. Charles Funk, Police, vested had requested his accumulated contributions of $118,487.73. It was moved by Trustee Fabus and supported by Trustee Oleson to approve the following request for refund of accumulated contributions: Charles Funk, Police, Vested, $118,487.73 Adopted by the following vote: 6 — 0. Trustee St. Aubin reported that Trustee Good requested to be excused from the October Police and Fire Retirement System Board meeting. The Retirement Board noted that Trustee Good did not need to be excused because she is ex-officio. Attorney Ken Lane distributed a letter for review to the Human Resources Director regarding the outstanding Police and Fire Retirement Board Ordinance. Ms. Angela Bennett recommended that the Retirement Ordinance should be finalized upon completion of the outstanding collective bargaining agreements. Trustee Oleson expressed concern that the actuarial valuation can be comprised with inaccurate information. Trustee St. Aubin indicated that the bargaining agreements had been approved and ratified by City Council. Regular Meeting October 18, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Ms. Bennett reported that there were still some outstanding items between administration and the bargaining units. Trustee Wood expressed concern that members did not have copies of their bargaining agreements or an accurate Retirement Ordinance. It was moved by Trustee Wood and supported by Trustee Fabus to approve the draft by Attorney Ken Lane regarding the Police and Fire Retirement System Ordinance amendment. Adopted by the following vote: 6 — 0. Attorney Ken Lane provided an updated Election Policy to reflect online electronic voting. Ms. Williams requested Board direction on implementing electronic voting for future elections. Ms. Williams updated the Board regarding the Fire Trustee election. She reported that the nominating petitions are due November 10, 2016 with elections to follow in December. The Board discussed the election voting process. Trustee Wohlfert indicated the voting dates of December 13 -14 for the General Election would allow all the shifts to vote. Members would be directed to vote at City Hall. Ms. Williams also discussed absentee ballots. The Board indicated that electronic voting would not be used for the Fire Trustee Election. Trustee St. Aubin requested that the electronic voting be placed on pending. Karen Williams distributed a recommendation from Asset Consulting Group regarding the termination of Private Advisors Karen Williams indicated that the SAS 70/ Custody and Fund Services SOC 1 Report were ready for review by the Board. Attorney Ken Lane noted that he would review the security measures and report back the Police and Fire Retirement Board. Attorney Lane discussed the letter from Steve Harry requesting a summary annual report. Attorney Lane indicated that the actuarial report, the annual budget and the year-end investment report comprised the necessary reporting required by Public Act 314 and the Police and Fire Retirement Board Policy. Trustee Wood indicated the information was difficult to find and she suggested working with the Information Technology department to make the items easier to find. The Retirement Office contacted the Human Resources Department for the sworn dates for the new firefighters. Human Resources do not receive the sworn- in dates. The Fire Department indicates which members should have retirement contributions. Trustee Wood requested that the Retirement Office send a list of names to City Clerk and ask for the swearing-in dates. The sworn dates are needed to comply with the Retirement Ordinance. Ms. Bennett indicated that the Human Resources Department was working on having documentation regarding the sworn dates in the employee files. Trustee Wood indicated that she would follow up with Mr. Harry. Mr. Greg Stump, Boomershine Consulting Group presented the actuarial valuation for the period ending 12/31/2015. Mr. Stump provided a review and a schedule for approval of the valuation and assumption changes. He discussed the funding background, plan participants for retirees and active employees. Mr. Stump discussed the actuarial liability, market and smoothed assets and rations. He detailed the city contribution, and described investment decease and demographic gains. Mr. Stump provided an overview of the actuarial process and discussed the Experience Study. He reviewed the inflation outlook, investment return and salaries assumption and also discussed retirements, termination, disabilities and mortality. Mr. Stump provided a summary of recommendations for the economic and demographic assumptions. He explained the impact of the recommendations and provided a cash flow, funding, and contribution future outlook. The Tegrit Visit was proposed for spring 2017. Trustee Fabus inquired if we would have electronic voting for the election. Ms. Williams presented the Monthly Investment Report and the Securities Lending Report for the month of September 2016. The Police and Fire Retirement Board moved the quarterly cash flow to pending for November. It was moved by Trustee Oleson and supported by Trustee Fabus to adjourn the meeting. Adopted by the following vote: 6 -0 The meeting adjourned at 10:46 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 November 8, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board was called to order at 8:30 a.m. Present: Trustees Fabus, Good, Oleson, Rose, St. Aubin, Wohlfert, Wood — 7. Absent: Trustee Bernero. Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken Lane, Clark Hill (representing the CityAttorney's Office). It was moved by Trustee Fabus and supported by Trustee Wohlfert to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of October 18, 2016. Adopted by the following vote: 7 — 0 Trustee Wood introduced Mr. Eric Brewer, the new Internal Auditor for City Council. She invited him to the meet to become familiar with the proceedings. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 1 refund(s), 0 transfers, 0 retired. Total: Active membership: 325. 1 death(s), William Wilkins, Fire, died 9/19/2016, age 75, no beneficiary. Refunds made since the last regular meeting amounted to $118,487.73. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of October 2016 amounted to $2,662,334.32. Total retirement checks printed for the P&F System: 730. Total retirement checks printed for both systems: 1637. Domestic relations order received: 0. Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. Trustee Wood inquired if the refunds included interest. Ms. Williams confirmed that the request for refund of accumulated contributions did include 3% interest rate. Trustee St. Aubin inquired what the 3% interest rate was based upon. Regular Meeting November 8, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Page Two Lansing, MI Ms. Bennett indicated that the Retirement Board discussed the interest rate during the actuarial discussion last year. Ms. Bennett detailed that the 3% rate was a long term rate and was not considered too high or low. Trustee Fabus recommended that the Police and Fire Retirement Board ask Boomershine how the City of Lansing rate compares with other systems. There were no requests for regular age and service retirements. There were no requests for Duty Disability retirements. There were no requests for Non Duty Disability retirements. Karen Williams reported that she provided medical re-evaluation reports to the disability subcommittee for review. Trustee St. Aubin discussed reviewing the evaluation duty disability retirements. Trustee St. Aubin discussed the determination of whether a member `s disability was duty or non-duty for pre-existing conditions or injuries. Attorney Lane opined that the Police officer and Fire fighter is defined in the Ordinances. The medical doctor has a narrow focus that the member is totally disabled to the position of police officer or firefighter as described in the Ordinance. The Police and Fire Retirement Board has the final decision to determine duty or non-duty. Trustee Fabus recommended a review of duties designated for police officers and firefighters. Trustee Wohlfert provided his NCPERS report regarding his attendance at the Public Safety Conference. He discussed the workshop presented regarding duty disabilities, cyber security, Medicare and Fort Lauderdale firefighter Trustee St. Aubin attended the NCPERS Public Safety Conference and he enjoyed the presentations that include legislative issues, retiree health s from-other systems.Aubin liked the networking experience with other public sa y membe Trustee Oleson reported that he attended the NCPER o Public Safety tCementnce. He system noted the workshops on the DROP plans, and the C update. Regular Meeting November 8, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Fabus provided his NCPERS Public Safety Conference Report. He attended workshops that reviewed action items for retirement board that include cyber security, outside company to perform a vulnerability test, and the retirement board issuing a written disability report, and DROP plan options.. Karen Williams indicated that the Police and Fire Retirement System Board maintains memberships with several professional organizations. The respective dues for 2017 are MAPERS, $100; NCPERS, $250; IFEBP, $497.50 and are paid with administrative funds. It was moved by Trustee Robert Oleson and supported by Trustee Wohlfert to approve the payment of Police and Fire' Retirement System Board membership fees for MAPERS, NCPERS and IFEBP for 2017. Adopted by the following vote: 7-0. Trustee Fabus and Trustee St. Aubin requested to be excused from the November Joint Retirement Boards due to work obligations. Attorney Ken Lane reported that he sent a letter to the Human Resources Director regarding the delay of the Police and Fire Retirement Board Ordinance. He sent a copy of the letter to City Council, the Mayor's Office and the City Attorney's Office. Attorney Lane has not . received a response. The City Attorney's Office recommended that the Retirement Board direct them to send an internal memo regarding the Police and Fire Retirement Board Ordinance. It was moved by Trustee Wood and supported by Trustee Wohlfert to request the City Attorney's Office to direct an internal memo regarding the delay of the Police and Fire Retirement Board Ordinance and a request for the Human Resource Director to attend the next meeting, if there has not been a response a week before the next meeting. Adopted by the following vote: 7 -0 Attorney Ken Lane reported that the City Attorney's Office has received the employee contracts from Human Resources. The contracts are being red-acted for social security numbers and addresses and then will be available for review by the Retirement Boards at the December meetings. Attorney Lane will draft a policy regarding how employees become members of the Police and Fire Retirement System, when sworn. Regular Meeting October 18, 2016 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Ms. Williams updated the Board regarding the Fire Trustee election. She reported that the nominating petitions are due November 10, 2016 with elections to follow in December. The Board discussed the election voting process. Trustee Wohlfert indicated the voting dates of December 13 -14 for the General Election would allow all the shifts to vote, Members would be directed to vote at City Hall. Ms. Williams also discussed absentee ballots. Attorney Lane indicated that he reviewed the SAS 70/ Custody and Fund Services SOC 1 Report and there were no substantive changes in the report. Trustee Wood requested that the report be sent to the City of Lansing Information Technology director for review. Trustee Rose requested that the Information Technology Director be invited to the next Police and Fire Retirement Board meeting to discuss cyber security. Trustee Wood requested that the Retirement Board webpage be reorganized to make the annual year end budget expenses document easier to find with additional detail. Attorney Lane indicated that the actuarial report, the annual budget and the year- end investment report comprised the necessary reporting required by Public Act 314 and the Police and Fire Retirement Board Policy. Karen Williams distributed the 2017 schedule of meeting dates. Trustee St. Aubin called Mr. Greg Stump, Boomershine Consulting Group to give a brief review of the actuarial valuation for the period ending 12/31/2015. Mr. Stump discussed the annual contribution, retirement and health care reserve. He discussed the funding background, and the effect of assumption changes. Mr. Stump provided an overview of the Experience Study and discussed GASB 67 and 68. The GASB reports are based on June 30 values and would be available next year. Ms. Bennett explained that there a difference of valuation date and comprehensive financial statement for the City. The Retirement System and health care fiscal year end December 31, and the City's fiscal year ends June 30. Since the retirement system data ends 6 months prior to close of the City's fiscal year, the GASB reports rolls the retirement data forward for financial reporting purposes. It was moved by Trustee Wood and supported by Trustee Fabus to accept the Police and Fire Retirement Actuarial Valuation for the period ending 12/31/2015. Adopted by the following vote: 7 — 0. The Tegrit Visit was proposed for spring 2017. Karen Williams reported that she contacted Gabriel, Roeder, Smith regarding providing a link to Minute Manager and a process to approve users for archived minutes. Gabriel, Roeder, Smith explained that the process to approve and maintain users would be detailed and costly. Karen Williams distributed a memo from Asset Consulting Group detailing the Police and Fire Retirement System quarterly cash flow withdrawal. ACG recommended $3.8 million from Northern Trust Index Fund and $3.00 million from T. Rowe Price. It was moved by Trustee Fabus and supported by Trustee Wohlfert to redeem $3.8 million from the Northern Trust Index Fund and $3.0 million from the T. Rowe Price fund for quarterly cash flow withdrawal. Adopted by the following vote: 7-0. Ms. Williams presented the Quarterly Expenses Report and the Securities Lending Report for the month of October 2016. It was moved by Trustee Rose and supported by Trustee Good to adjourn the meeting. Adopted by the following vote: 7 -0 The meeting adjourned at 9:49 a.m. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System