HomeMy WebLinkAbout2011 Police and Fire Retirement System minutes FINAL i !
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OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting January 21, 2011
Council Conference Room Friday, 9:00 a.m.
10th Floor, City Hall
Lansing, MI
The Board met in special session and was called to order at 9:01 a.m.
Present: Trustees Benson, Fabus (9:10 a.m.), Hecksel, Kraus, Oleson, St. Aubin,
Wood — 7.
Absent: Trustee Bernero,
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department).
It was moved by Trustee Wood and supported by Trustee Oleson to approve the -
Official Minutes of the Police and Fire Retirement System Board Meeting of
December 14, 2010.
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: 443. 0 death(s). Refunds
made since the last regular meeting amounted to $ 0.00. Retirement allowances
paid for the month of December, 2010 amounted to $1,967,469.87. Total
retirement checks printed for the P&F System: 660. Total retirement checks
printed for both systems: 1506. Domestic relations order received: 0. Domestic
relations orders pending: 0. Eligible domestic relations orders certified: 1.
There were no applications for Regular Age & Service Retirement for January.
Karen Williams updated the Board regarding the requests for duty disability. Ms.
Williams informed the Board that the Case #2010-F0422 applicant has been seen
by evaluated Dr. Margolis, who will send his completed report to the Board.
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Regular Meeting January 21, 2011
Council Conference Room Friday, 9:00 a.m.
10th Floor, City Hall
Lansing, MI Page Two
It was moved Trustee Kraus and supported by Trustee Oleson to approve
applicant #2010-F1019, Ryan Power, effective January 22, 2011.
Adopted by the following vote: 6 — 0
Case #2010-F1019 applicant has been contacted by the Retirement Office. The
applicant has supplied his documentation to the Board to be referred to the
Medical Director.
The Retirement Office is waiting for the Medical Director's report for Case #2010-
F1109.
There were no requests for Non Duty Disability Retirement.
It was moved by Trustee Wood and supported by Trustee Hecksel to approve the
following Request for Refund of Accumulated Contributions.
Adopted by the following vote: 7 — 0.
The Board heard the Annual Police and Fire Retirement System Actuary Report
Presentation from Gabriel, Roeder, Smith and Company, Tuesday, January 18,
2011.
It was moved by Trustee Wood and supported by Trustee Hecksel to accept the
Actuary Report and the recommendation of City contribution to the Police and Fire
Retirement System.
Trustee Wood discussed the experience study and look at amending the
smoothing schedule for financial reporting.
Adopted by the following vote: 7 — 0.
Attorney Kenneth Lane reported to the Board regarding Mr. Jerome Tolbert
request for service credits. Attorney Lane submitted an opinion and has opined
that the Board does not have the authority to award Mr. Tolbert service credits for
time he did not work.
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Regular Meeting January 21, 2011
Council Conference Room Friday, 9:00 a.m.
10th Floor, City Hall
Lansing, MI Page Three
It was moved by Trustee Hecksel and supported by Trustee Wood to send Mr.
Tolbert.a letter with an explanation of the Board's decision.
Adopted by the following vote: 7 — 0.
The Policy/Ordinance update was moved to pending for next month meeting.
Trustee Kraus requested help for the Joint Committee on Special Projects for
Actuarial Services. Trustee Wood offered to assist Trustee Kraus to finalize the
proposal and interview process.
Ms. Williams updated the Board regarding Pension Software. The Project
manager prepared a Request for Information that was mailed to companies to get
basic information on services and fees. The Project Manager will provide and
analysis of the RFI that are due February 2, 2011 and would give a range of fees
to the Board. The Project manager will also begin to prepare a Request for
Proposal.
Trustee Kraus explained to the Board that the RFI is to get an initial preview of
pricing, so the Board can determine what the Software would cost.
Trustee Kraus reported to the Board that she has been working with Spartan
Internet to develop an informational retirement website. Trustee Kraus will supply
the link to the Retirement Office to distribute to trustees to review.
Ms. Williams distributed the Investment and Securities Lending Report for
December 2010.
It was moved by Trustee Oleson and supported by Trustee Kraus to adjourn the
Police and Fire Retirement Meeting of January 21, 2011.
Adopted by the following vote: 7 — 0.
The meeting adjourned at 9:16 am.
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Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
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CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
AGENDA
Regular Meeting February 15, 2011
City Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, Michigan
1. Call to Order.
2. Roll Call - Trustees Benson, Bernero, Fabus, Hecksel, Kraus, Oleson, St. Aubin,
Wood-8.
3. Reading of the Official Minutes of the Police and Fire Retirement System Board of
January 21, 2011.
4 Public Comments for Items on the Agenda.
5. Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0
transfers, 0 retired. Total: Active membership: 443. 0 death(s). Refunds made since
the last regular meeting amounted to $12,803.69. Retirement allowances paid for the
month of January, 2011 amounted to $1,976,446.83. Total retirement checks printed for
the P&F System: 658. Total retirement checks printed for both systems: 1503.
Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible
domestic relations orders certified: 0.
6. Application for Regular Age & Service Retirement.
Kim A. Halverson, Police Department, 25 years of service credits, age 49, effective
February 15, 2011.
Larry S. Klaus, Police Department, 25 years of service credits, age 48, effective
February 15, 2011
7. Request for Duty Disability.
a. Case#2010-F0422 -Pending
b. Case#2010-F1109 -Pending
c. Case#2010-F 1110 -Pending i
8. Request for Non Duty Disability Retirement.;
9. Request for Refund of Accumulated Contribution
10. Excusing of Board Members
11. Training and Education
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Regular Meeting February 15, 2011
City Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, Michigan
12. Public Comments for items not on the Agenda
13. Other Business:
a. Policy/Ordinance Updates — Clark Hill
b. Investment Subcommittee Report— Small/SMID Cap Investment Manager Search
C. City of Lansing Comprehensive Financial Annual Report
14. Pending (items):
a. Joint Committee on Special Projects—Actuary Bid Process
15. Securities Lending Report
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting February 15, 2011
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, Hecksel, Kraus, Oleson, St. Aubin, Wood — 6.
Absent: Trustee Bernero, Benson
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department), Mr. James Squire, Mr. Robert
Warner, Fire Department.
It was moved by Trustee Wood and supported by Trustee Hecksel to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of
January 21, 2011.
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, 0 retired. Total: Active membership: 442. 0 death(s). Refunds
made since the last regular meeting amounted to $12,803.69. Retirement
allowances paid for the month of January, 2011 amounted to $1,976,446.83.
Total retirement checks printed for the P&F System: 658. Total retirement checksE-
printed for both systems: 1503. Domestic relations order received: 0. Domestic",_
relations orders pending: 0. Eligible domestic relations orders certified: 0.
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Regular Meeting February 15, 2011
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 Hecksel to approve
the following Applications for Regular Age and Service Retirement:
Kim A. Halverson, Police Department, 25 years of service credits, age 49, effective
February 15, 2011.
Larry S. Klaus, Police Department, 25 years of service credits, age 48, effective February
15, 2011
Adopted by the following vote: 6 - 0
It was moved by Trustee Hecksel and supported by Trustee Oleson to have a
short recess to allow the disability subcommittee to meet to review the Medical
Director report.
Adopted by the following vote: 6 — 0
The Board recessed at 8:34 a.m.
It was moved by Trustee Hecksel and supported by Trustee Oleson to rise from
the recess.
Adopted by the following vote : 6 — 0
Trustee Kraus reported that the subcommittee had met and recommended to
concur with the Medical Doctor's report to deny the duty disability application of
Case #2010-F0422.
Regular Meeting February 15, 2011
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 Hecksel to move to
closed session to review the Medical Director reports of the duty disability
applicants.
Adopted by the following roll call vote:
Yeas: Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood
Nays: 0
The Board recessed session at 8:50 a.m.
The Board resumed session at 8:57 a.m.
It was moved by Trustee Kraus and supported by Trustee Hecksel to concur with
the Medical Director's report and deny the duty disability application of Case
#2010-F0422. Further, the Medical Director has recommended further treatment
and the Board will refer the report to City of Lansing Human Resources.
Adopted by the following vote: 6 - 0
Case #2010-F1019 applicant has submitted his documentation to the Board and
the Medical Director has it for review. The Medical Director's office will schedule
an appointment for evaluation.
Attorney Ken Lane reported to the Board that the applicant #2010-F1110 was
denied a duty disability in August. The applicant came forward the Board with new
information for review. As a courtesy and consistent with past practice, the Board
forwarded the information to the Medical Director. The Medical Director submitted
an addendum to the Board that stated the new information does not change his
original decision to deny duty disability. A new application was not file. The
Retirement Office assigned a new case number to protect the applicant's
confidentiality. The Board is not required to take action on this case. The Board
voted in August.
The Retirement Office is waiting for the Medical Director's report for Case #2010-
F 1109.
There were no requests for Non Duty Disability Retirement.
Regular Meeting February 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
There were no requests for Refund of Accumulated Contribution.
It was moved by Trustee Wood and supported by Trustee Hecksel to excuse
Trustee Benson from the February Official Police and Fire Retirement Meeting.
Adopted by the following vote: 6 — 0.
Trustee St. Aubin returned to Public Comments to allow Mr. James Squire and Mr.
Richard Warner the opportunity to address the Board.
Mr. Squire expressed his concern that the duty disability application process is too
slow. He asked the Board if they could contact the Medical doctors to expedite
duty disability matters. Mr. Squire believed the process could be more efficient.
Mr. Squire stated that he has struggled to continue to work and requested
consideration for his condition. He believed that the medical doctors did not
acknowledge his concerns. Mr. Squire requested a copy of his Medical Reports.
Mr. Richard Warner expressed his opinion that he did not agree with the Medical
Directors decisions. Mr. Warner asked who had liability for him if he returns to
work. He requested a copy of the Medical Report and asked if he needed to
submit a Freedom of Information Act to receive the report.
Attorney Kenneth Lane opined that Mr. Warner did need to request that report via
the Freedom of Information Act.
Trustee St. Aubin moved to Other Business to allow Ms. Angela Bennett, Budget
Director the opportunity to address the Board regarding the City of Lansing
Comprehensive Financial Annual Report.
Ms. Angela Bennett reported to the Board that she responded to questions in the
management letter raised by the auditors who prepared the Annual Report.
Attorney Kenneth Lane opined that he reviewed the management letter that
Trustee Wood forwarded to him. Attorney Lane contacted Rehmann Group for an
explanation. However, the auditors did not respond to his request.
Regular Meeting February 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Five
Trustee Wood inquired to Ms. Bennett about the two issues addressed in the
management letter: the timing of the actuary report and the SAS 70 letter.
Trustee Wood wanted it reflected in the record that the issues were not items that
the Board was responsible for completing.
Ms. Bennett responded both items were administrative issues. Ms. Bennett
stressed that the Board did not do anything incorrectly. Ms. Bennett reported that
moving forward the Finance Department would submit the SAS 70 letter to the
Board for review.
Ms. Bennett also responded that the administration was working to have the data
sent to the Actuary sooner in the year. In the previous years, the data was not
submitted to the actuary until early fall. The Finance Department is working to
move up the data submission so that the actuarial evaluation come be completed
at an earlier date.
Trustee Wood requested a policy regarding the review of the SAS 70 letter.
Trustee Oleson reported on the MAPERS One Day Seminar. Trustee Oleson
requested a status report on the MAPERS Survey. Ms. Williams forwarded to
MAPERS an actuary report and year-end financial reports for the Police and Fire
Retirement System. Trustee Oleson discussed legislative updates and be
compliant with MAPERS in sending letters to legislators regarding important
issues. Trustee Oleson stated that MAPERS is working hard on public retirement
systems.
Attorney Kenneth Lane distributed and reviewed a legislative update of Public Act
314. Attorney Lane reviewed the sessions offered at the MAPERS One Day
Session. Attorney Lane discussed the mock round-table regarding securities
monitoring and PA 314 issues. Attorney Lane also discussed sessions regarding
asset allocation.
Trustee Hecksel discussed the lunch session regarding non-verbal
communication.
Regular Meeting February 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Six
Trustee St. Aubin placed the Policy and Ordinance updates on pending until next
month.
It was moved by Trustee Wood and supported by Trustee Kraus to replace
Northpointe with William Blair as the money manager for the Small/SMid Cap
Investment Manager as recommended by Asset Consulting Group and contingent
upon legal review of the contract.
Adopted by the following vote: 6 — 0
Trustee St. Aubin reported that he received a statement from Private Advisor and
the year-end yield was 7.75%.
Trustee Hecksel inquired regarding in-service withdrawal from deferred
compensation 457 to purchase Military time credits.
Attorney Ken Lane responded that the IRS does allow in-service withdrawals from
457 plans to purchase service credits. However, the Police and Fire Retirement
allowance does not allow these purchases. The matter is a collective bargaining
issue.
Trustee Hecksel inquired regarding Mr. Jerome Tolbert request for service credits.
He stated that other members had similar situation. The Board agreed that Board
does not have the authority to award service credits for time he did not work or
modify arbitration agreements.
Trustee Carol Wood stated that she has completed the letter to be used for the
finalist of the Actuary Bid Process.
Ms. Williams distributed the Investment and Securities Lending Report for
December 2010.
Attorney Kenneth Lane opined that trustees have no liability for applicants who are
denied duty disability. Per the Ordinance, the Board concurs with the Medical
Director's report.
Trustee Wood asked legal counsel to draft a memo to be included in next month
minutes that state the Retirement Board is not responsible for issues that were
brought up in the management letter, and to describe what the Board will be
asked to do moving forward regarding SAS 70 letter..
It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the
Police and Fire Retirement Meeting of February 15, 2011.
Adopted by the following vote: 7 — 0.
The meeting adjourned at 9:28 am.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
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CITY OF LANSING
POLICE & FIRE and ERS RETIREMENT SYSTEM
JOINT BOARD
OFFICIAL MINUTES
Joint Meeting February 15, 2011
Council Conference Room Thursday, 9:30 a.m.
10th Floor City Hall
Lansing, MI
The meeting was called to order at 9:46 a.m.
A quorum of the Police and Fire Retirement System Board and the Employees
Retirement System Board was present.
Trustees present: (ERS), Dedic(11:01 a.m), Kraus, Munroe, McCaffery, Parker, Rose-
6.
(Police & Fire), Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood — 6.
Other presents: John Jackson, Asset Consulting Group, Inc. (ACG); Karen Williams;
Eric Tumbarella, Finance; Attorney Kenneth Lane, Clark Hill Law Office (representing
the City Attorney's Office);
Mr. Eric Tumbarella provided an overview of the Pension Administration
Software Project. Mr. Tumbarella reviewed the results of the Request for
Information mailed to targeted vendors on behalf of the Retirement Board. The
Boards discussed the selection of vendors, hosted systems and non-hosted
systems, liability, conversion costs and start costs for a comprehensive
retirement software solution Mr. Tumbarella reviewed the next steps for the
projects, sending out a Request for Proposal for vendors..
It was moved by Trustee Wood and supported by Trustee Hecksel forthe Police
and Fire Retirement Board to distribute a Request for Proposals to vendors for
Comprehensive Pension Administration software.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Rose and supported by Trustee Munroe for the
Employees Retirement Board to distribute a Request for Proposals to vendors
for Comprehensive Pension Administration software.
Adopted by the following vote: 6 — 0.
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February 15, 2011
Joint Meeting Tuesday, 9:30 a.m.
Council Conference Room
10th Floor City Hall
Lansing, MI
It was moved Trustee Wood and supported by Trustee Hecksel for the Police
and Fire Retirement Board to go into closed session to discuss attorney- client
priviledge information
Adopted by the following roll call vote: 6 — 0
Yeas: Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood
Nays: 0
It was moved by
Trustee Kraus and supported by Trustee Rose for the
Employees Retirement System Board to go into closed session to discuss
attorney-client priviledge information.
Adopted by the following roil call vote: 5 - 0
Yeas: Kraus, Munroe, McCaffery, Parker, Rose
Nays: 0
The Board resumed session at 10:48 a.m.
Mr. John Jackson, Asset Consulting Group provided an overview of Northpointe
Investment. Mr. Jackson provided an in-depth
Son discussed the firm detailsew of NorthPointe )
and its concerns with the performance. M
r.investment strategy and provided a recommendation to the Police and Fire
Retirement System and the Employees Retirement System to replace
NorthPointe.
The Police and Fire Retirement System Board
have
Investmentagreed to replace its Small
Cap/SMid manager and hire William Blair
The Employees Retirement System agreed
topostpone its discussion until their
Board meeting, Thursday, February 17, 2011.
mance review of
e E
ployees
Mr. John Jackson provided a year-end
d Firer Retirement Systehm investmentRetirement System and the Police
portfolios. Mr. Jackson discussed theMarket Environment and r provided
Mr.
an
executive summary of the Investment p presented d to the Boards
Jackson provided an equity analysis, fixed analysis and real estate analysis of
the retirement portfolios.
vi
Mr. John Jackson distributed a memo from Asset e°nsulting Group and 3 000 000 to the Polc eeand F re
wed the
Quarterly Cash Flow Recommendation to prove $
Retirement System Board.
OOOI
It was moved by Trustee
Hecksel and supported Trustee Wood to redeem account,
ointe Investments for Quarterly Cash Flow to the o
from Northp Group.
on the written recommendation from Asset Consulting
Adopted by the following vote: 5 - 0•
Trustee Hecksel and supported by Trustee Wood to redeem $15,000
It was moved by Tr to Comerica for administrative expenses.
from Northern Trust Security Lending
Adopted by the following vote: 5—o
Group and reviewed the
tiroion to provide $Consulting
000 to the Employees
Mr. John Jackson distributed a memo from Asset Consulting
Quarterly Cash Flow Recommend
Retirement System Board. 000 000
Trustee Kraus and supported Trustee°R°{o the to rComeriedeem ca account,
It was moved byGroup.
from Northern Trust Investmenso Quarterly r sset Consulting
based on the written recommendation
Adopted by the following vote: 6 - 0•
Trustee Rose to redeem$15,000 from
lt Trustee Kraus and supported by expenses
Northern
movedTrust Lending to Comerica for administrative
Northern Trust Security
Adopted by the following vote: 6—o•
Jackson reviewed the Northern Trust Fraud Monitoring fee that was
Mr. John 2011
effective January
The meeting adjourned at 12:15 a.m.
Minutes approved on Jerry Ambrose, Secretary
Brad St. Aubin, Chairperson
Scott Dedic, Chairperson Fire and police Retirement System
Employees Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM -Amended
Regular Meeting March 15, 2011
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 Benson, Hecksel, Kraus, Oleson, St. Aubin, Wood — 7.
Absent: Trustee Bernero, Fabus
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department).
It was moved by Trustee Kraus and supported by Trustee Oleson to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of
February 15, 2011 with corrections.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Kraus and supported by Trustee Hecksel to app%ve the
Official Joint Minutes of the Police and Fire Retirement System Board and tho, E-
Employees Retirement System Board meeting of February 15, 2011. ro C
C'; CA FTI
Adopted by the following vote: 6 — 0.
Secretary's Report. i c-n
0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0
transfers, 2 retired. Total: Active membership: 440. 2 death(s) Barbara Rairigh,
Fire, died 12/21/2010, age 83, spouse of retiree; Ursula Finney, Fire, died
2/17/2011, age 82, spouse of retiree. Refunds made since the last regular
meeting amounted to $0.00. Retirement allowances paid for the month of
February, 2011 amounted to $1,976,446.83. Total retirement checks printed for
the P&F System: 661. Total retirement checks printed for both systems: 1506.
Domestic relations order received: 0. Domestic relations orders pending: 0.
Eligible domestic relations orders certified: 0.
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Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
Attorney Ken Lane updated the Board regarding Ms. Ursula Finney. Ms. Finney
received an overpayment $17,846.46 because she did not report her husband's
death and continued to collect his full pension. Ms. Finney's balance was
$8,894.18. Ms. Finney entered into an agreement with the Board to repay the
monies. Attorney Lane reported that when he spoke Ms. Finney, she was
considering selling properties to make payment. Attorney Lane reviewed the
option to collect from the Estate. He provided an estimate of $10,000 to file a
claim in Probate Court to collect on the debt. Attorney Lane will contact the
Probate Court and then contact the chairperson regarding the process and the
costs for filing a claim. At that time, the Board can decide if its wishes to move
forward.
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the
following Applications for Regular Age and Service Retirement:
William M. Barnes, Police Department, 25 years of service credits, age 52, effective
March 11, 2011.
David S. Blackman, Police Department, 25 years, 1 mo. of service credits, age 48,
effective March 11, 2011.
Frank J. Medrano, Police Department, 25 years of service credits, age 46, effective
March 21, 2011.
Adopted by the following vote: 6 - 0
Karen Williams reported that Case #2010-F1109 applicant is scheduled to see the
Medical Director for evaluation.
There were no requests for Non Duty Disability Retirement.
There were no requests for Refund of Accumulated Contribution.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
It was moved by Trustee Hecksel and supported by Trustee Oleson to excuse
Trustee Fabus from the March Official Police and Fire Retirement Meeting due to
Training in Ann Arbor.
Adopted by the following vote: 6 — 0.
Karen Williams announced that members should have received their registration
material for the Spring MAPERS that will be held May 1 — 3, to the City of Lansing
Retirement Office. Ms. Williams was waiting for information for hotel registration.
Karen Williams also announced that members should contact the Retirement
Office is they plan to attend the International Conference in October. Trustee
Oleson stated that his is reviewing flight information.
Attorney Ken Lane reviewed the provisions of the Police and Fire Retirement
Board's proposed policies on Ethics Code of Conduct, Record Retention and the
Investment Policy.
It was moved by Trustee Oleson and supported by Trustee Hecksel to adopt the
Police and Fire Ethics Code of Conduct Policy and that it supersedes all other
Ethics Code of Conduct Policies. This policy shall be attached to the minutes and
also filed in the policy book with the date of this motion of adoption shown thereon.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Wood and supported by Trustee Hecksel to adopt the
Record Retention Policy and that is supersedes all other Record Retention
Polices. This policy shall be attached to the minutes and also filed in the policy
book with the date of this motion of adoption shown thereon.
Adopted by the following vote: 6 — 0.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
Attorney Ken Lane reviewed the Investment Policy Statement Modifications.
Attorney Lane discussed that John Jackson of Asset Consulting Group suggested
the following modifications of the Investment Policy statements:
• Delete reference to small cap to reflect hiring of William Blair to replace
NorthPointe.
• Change "semi-annually" to "annual meetings" in accordance with current
practice.
• Modify language describing participation in securities lending
• Place modifications list on last page of the document.
The Board discussed the securities lending with Northern Trust. Mr. John Jackson
at the annual policy training viewed how securities lending operates. The Board
agreed to have Northern Trust come to the Joint Meeting in May to discuss
securities lending.
It was moved by Trustee Oleson and supported by Trustee Hecksel to adopt the
Investment Policy and that is supersedes all other Investment Policies. This policy
shall be attached to the minutes and also filed in the policy book with the date of
this motion of adoption shown thereon.
Adopted by the following vote: 6 — 0.
Attorney Ken Lane updated that Board regarding the derivative claim regarding
Invacare. Attorney Lane reviewed a letter sent by Milberg to Invacare giving the
company 45 days to correct their processes or face litigation.
Attorney Ken Lane also updated the Board that the City Attorney intends to move
forward with contracting with Barrack, Rodos and Racine. Trustee Oleson
expressed concern that the City Attorney can bypass the Board with Fraud
Monitoring litigation.
Attorney Ken Lane explained that City Attorney has legal authority to hire Barrack,
Rodos and Racine. However, the Board is not compelled to enter into a contract
with the firm.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Five
Attorney Ken Lane explained how the process for Fraud Monitoring would operate.
Once a monitoring firm brings a possible lawsuit to the Board, it will go to review
by the City Attorney's Office to determine the legal aspects of the case. Attorney
Ken Lane reviewed a proposed policy for Fraud Monitoring that would provide a
threshold in which a firm would contact the Retirement System. Attorney Lane
discussed that when a company is sue, sometimes they may file a countersuit.
Therefore, the City Attorney's Office must be involved in the process. When a
fraud monitoring firm brought proposed litigation to the Board, the City Attorney's
Office would review the case regarding the legal aspects. The case would be
brought to the Board and Asset Consulting will also review the litigation.
Trustee Hecksel inquired about the list of the pre-approved law firms and asked if
the Board is obligated to file litigation brought by Barrack, Rodos and Racine.
Attorney Ken Lane explained that the City Attorney could move forward with
litigation brought by Barrack, Rodos and Racine without Board approval.
Trustee Wood stated that she met with the City Attorney regarding the two firms
voted on by the Board. At the time, the City Attorney was not happy that Barrack,
Rodos and Bacine was not chosen and wished to add the third firm to the City
Council Resolution, and stated that the Board was under no obligation to use the
firm. The agreement was that at a later time, the City Attorney would come back
to the Board to request that Barrack, Rodos and Bacine be added.
Attorney Ken Lane stated that the Board and the City Attorney need to work
together in these cases. Attorney Lane stated that he would discuss with the City
Attorney a policy that would agreeable to the Board. The Policy would deter the
Board or the City Attorney's Office from changing law firms after an agreed
decision to litigate has been decided.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Six
The Board expressed concern that the City Attorney did not come to the Board
regarding his decision to move forward with a third firm. The Board expressed
concern that the trustees went through a review of Fraud Monitoring Firms, held
interviews and made selection based upon the process. The Board discussed
options regarding the City Attorney's authority to make legal decisions for the
Board without their input. Board members could be liable for decisions made by
the City Attorney.
Attorney Ken Lane provided a suggestion that the City Attorney can sign the
Board's Policy on Fraud Monitoring, agreeing to its provisions.
Trustee Wood agreed that Attorney Ken Lane should draft the policy that would
have the City Attorney, the Board and Asset Consulting Group agree to litigation
before a case can move forward.
Trustee Benson inquired that does the City Attorney have the authority to
disregard the Board's decision, policy and hire Barrack, Rodos and Bacine.
Attorney Ken Lane opined that the City Attorney does have the authority to hire
Barrack, Rodos and Bacine.
It was moved by Trustee Benson to file a lawsuit and challenge the City Attorney's
Office decision. The motion died.
Trustee Hecksel stated that the Board should wait to see if the City Attorney Office
will agree to a policy provided by the Board. Legal alternatives can be pursued at
a later date if needed.
Trustee Benson expressed concern that the City Attorney's Office can ignore the
Board's input and make decisions that affect the Board.
It was moved by Trustee Wood and supported by Trustee Hecksel to start
developing a policy for Fraud Monitoring.
Adopted by the following vote: 6 — 0.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Seven
Attorney Ken Lane reviewed the agreement for William Blair as the new small cap
investment manager. Attorney Lane has provided modifications to the agreement
and Asset Consulting Group is reviewing the investment guidelines. Karen
Williams distributed a letter from William Blair requesting permission to use the
Police and Fire Retirement System in its marketing advertisements. The Board
agreed that William Blair could use the system after the contract has been signed.
Karen Williams distributed a memo from Asset Consulting Group regarding ING
Real Estate Investment Manager and a letter from ING Clarion. ING has recently
announced the sale of its real estate business and entered an agreement to move
its real estate division to a new company Lightyear Capital LLC.
It was moved by Trustee Hecksel and supported by Trustee Wood to give Asset
Consulting Group approval to begin the search for a manager to replace ING
Clarion Real Estate Investment Manager.
Adopted by the following vote: 8 — 0.
Karen Williams reported that the Duty Disability income verification letters were
mailed to retirees. Their verifications are due April 30, 2011. Ms. Williams
explained that duty disability retirees are required by Ordinance to report their
outside income to the Retirement Board. There were two conversions to age and
service retirement: Marie Wolfe and Teresa Ryder.
Trustee St. Aubin requested a list of duty disability retirees that are eligible for re-
evaluation by the Medical Director. The disability subcommittee will review the list
a next month's meeting.
Trustee Oleson inquired regarding the process to select duty disability retirees for
re-evaluation. The selection of duty disability re-evaluation is at the discretion of
the subcommittee based on the Board's policy.
Trustee St. Aubin discussed a detective from the Lansing Police Department that
is required by the Ordinance to leave at age 60. The officer was concerned about
not receiving his full 25 years of service.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Eight
Attorney Ken Lane opined that he has reviewed the issue and Ordinance Section
249.020) is a compulsory separation from service. The Board does not have
authority to extend service for Police Members. The detective does have the
option to purchase the months needed to achieve his full 25 years of service. The
provision is not unique to the City of Lansing. Most governments, municipalities
and federal laws have a mandatory age for separation from service for public
safety personnel.
Trustee St. Aubin added to items to the agenda, item g. Actuary request and item
h. HB 4214 and HB 4135.
Trustee St. Aubin asked legal counsel to speak on the state legislation.
Attorney Ken Lane provided a legislative update regarding HB4214 on the
Emergency Financial Manager. Attorney Lane discussed the provision that would
authorize the emergency manager to reject, modify, or terminate the terms of an
existing contract or a collective bargaining agreement (CBA). Additionally,
Attorney Lane discussed the provision regarding that would authorize the
emergency manager to assumed control of the government's pension system, set
and approve actuarial assumptions and eliminate the pension's system board for
local governments not funded at a level of 80% or more. The section requiring the
retirement system to be sent to MERS was pulled from the legislation.
Many communities may challenge this legislation if passed. The Financial
Emergency Manager could change benefits to retirees, and could operate as the
Board. Attorney Lane stated there are many troubling issues regarding the
legislation.
Attorney Ken Lane explained that HB 4135 was only applicable to municipalities
over 500,000. The legislation would remove union involvement in the election of
trustees to pension boards.
Trustee St. Aubin discussed the reduced size of workforce and how it would
impact the retirement system in the future. Trustee St. Aubin requested a motion
for the Board to commission its own independent actuarial evaluation.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Nine
It was moved by Trustee Hecksel and supported by Trustee Benson to request an
independent actuarial evaluation on a reduced size of workforce and its impact on
the pension system.
Trustee Hecksel stated that he would gather information from the Fire Department.
Trustee Wood inquired regarding the time frame.
Trustee Oleson stated that he does support having an actuarial evaluation.
However, he would like to think it through and get everything done at one time and
not pay for multiple evaluations.
Trustee St. Aubin stated his intention was to have several scenarios based on the
information provided to the actuary.
Trustee Oleson requested information regarding if the actuary would be done for
increased contributions also. Trustee Oleson believed that this was a separate
issue. He stated that an actuary evaluation on contributions has been done by the
union and the administration.
Trustee Kraus stated that the Board should have its own actuary numbers to
review, sooner than later.
Trustee Oleson expressed concern how much the evaluations would cost the
system.
Trustee Wood stated that money has been set aside to look at things in which the
Board would like to be proactive, and pay for things like education, pension
software.
Trustee Oleson requested that he would like to see the numbers, the scenarios
are selected and the proposed costs of the evaluations before the request to the
actuary is made.
Adopted by the following vote: 6 — 0.
Regular Meeting March 15, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Ten
Karen Williams announced that the Actuary Interviews would be held on
Wednesday, March 30 from 8:30 a.m. — 12noon.
Karen Williams announced that Trustee Kraus worked with Spartan Internet had
redesigned the website and it is on the City website. Karen Williams will update
the information.
Karen Williams also reported that the Proposals (RFPs) were received from the
Software companies. The proposals were referred to the Subcommittee on
Special Projects.
Trustee St. Aubin returned to Other business to add item I.
It was resolved by Trustee Wood and supported by Trustee Hecksel and
RESOLVED BY THE BOARD OF TRUSTEES
POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF LANSING
WHEREAS, The City of Lansing Police and Fire Retirement Board of Trustees are very
pleased to present this special commendation and admiration to Kenneth P. Lane,
Attorney at Law with Clark Hill, PLC. Mr. Lane has served as legal counsel to the Police
and Fire Board, representing the City Attorney's Office since October 2008. He has
brought to this position a truly impressive chronicle of experience and service; and
WHEREAS, Mr. Lane is well-regarded for his professionalism and courteous service. He
is very responsive and knowledgeable about all aspects of the City of Lansing Retirement
System. Mr. Lane continues to increase his acumen through training with the Michigan
Association of Public Employees System and attending due diligence meetings; and
WHEREAS, In addition to attending Board meetings, Mr. Lane provides orientation for
new trustees, reviews contracts, drafts policies, and responds to all legal issues. Mr.
Lane has also distinguished himself in assisting the Board in its successful search and
acquisition of Fraud Monitoring firms. He is always on-time, well-organized and offers
insightful suggestions to enhance Board activities and trustee decisions; and
NOW, THERFORE, BE IT RESOLVED that the City of Lansing Police and Fire
Retirement System Board hereby confers this tribute resolution to Kenneth Lane as
evidence of the Board Trustee's sincere esteem for his accomplishments. His exemplary
work and significant achievements on behalf of the Board are indeed worthy of the utmost
praise and respect.
Adopted by the following vote: 6 -0.
Karen Williams distributed and reviewed the Investment and Securities Lending
reports for month ending February 28, 2011.
Trustee Wood asked the memo from Clark Hill regarding SAS 70 be forwarded to
City Council and filed with the City Clerk's Office and attached to the external
audit.
It was moved by Trustee Wood and supported by Trustee Kraus to adopt the
Police and Fire Retirement System Board of Trustees Statement on Auditing
Standards No. 70 ("SAS No. 70) Report Policy and that is supersedes all other
Investment Policies. This policy shall be attached to the minutes and also filed in
the policy book with the date of this motion of adoption shown thereon.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Hecksel and supported by Trustee Oleson to adjourn the
meeting.
The meeting adjourned at 10:41 am.
Minutes approved on
Jerry Ambrose, 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 12, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:39 a.m. `
C.31
Present: Trustees Benson, (9:03 a.m.) Fabus, Kraus, Oleson, St. Aubin,`Wood —
6.
Absent: Trustee Benson, Bernero
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department).
It was moved by Trustee Oleson and supported by Trustee Kraus to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of March
15, 2011.
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, 2 retired. Total: Active membership: 440. 2 death(s) Barbara Rairigh, Fire,
died 12/21/2010, age 83, spouse of retiree; Ursula Finney, Fire, died 2/17/2011, age 82,
spouse of retiree. Refunds made since the last regular meeting amounted to $0.00.
Retirement allowances paid for the month of February, 2011 amounted to
$1,976,446.83. Total retirement checks printed for the P&F System: 661. Total
retirement checks printed for both systems: 1506. Domestic relations order received: 0.
Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0.
There were no applications for the Regular Age and Service Retirement.
The Disability Subcommittee reviewed inquiries from Dr. Roth regarding Case
#2010-F1109. Dr. Roth has received a response to his questions and will
provide a medical report for the applicant
Regular Meeting April 12, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
There were no requests for Non Duty Disability Retirement.
Mr. August Kymis, police department, submitted a letter requesting his refund of
Accumulated Contribution. Ms. Williams of the Retirement Office sent the
appropriate forms to Mr. Krymis per Police and Fire Board policy.
It was moved by Trustee Wood and supported by Trustee Oleson to excuse
Trustee Hecksel from the April Official Police and Fire Retirement Meeting.
Adopted by the following vote: 6 — 0.
Karen Williams announced that members should have received their registration
material for the Spring MAPERS that will be held May 1 — 3, to the City of Lansing
Retirement Office. Ms. Williams also registered members for dinner with
INVESCO.
There were no public comments.
Attorney Ken Lane updated the Board regarding Ms. Ursula Finney. Attorney
Lane informed the Board that a probate case has not been opened. The City
Atorney's Office suggested that one of their legal interns could open a probate
case and work on the process to collect the monies owed to the system. Once
the case is opened, anyone who is owed money by Ms. Finney could place a
claim.
It was moved by Trustee Oleson and supported by Trustee Kraus to have the
City Attorney's Office pursue opening a probate case on behalf of the Police and
Fire Retirement System to collect the outstanding debt from Ms. Finney's estate.
Trustee Wood offered a friendly amendment that the intern stay in contact with
Attorney Ken Lane to keep the Board updated.
Adopted by the following vote: unanimously
Regular Meeting April 12, 2011Tuesday, 8:30 a.m.
Council Conference Room
loth Floor, City Hall Page Three
Lansing, MI
Attorney Ken Lane reviewed the provisions Fraud Monitoring Procedure policy.
The City Attorney has agreed to sign and be bound by the policy. Attorney Lane
stated the policy would establish a threshold for which a claim would be filed. The
City Attorney's Office would check the claim on legal grounds and then refer it to
the Retirement Board to proceed. Either the firm or Attorney Lane would present
the case to the Board. Asset Consulting Group would also review the claim and
inform the City Attorney if there are any issues. The Board would then authorize
the City Attorney to sign the legal retainer agreement to proceed.
Trustee Wood expressed much concern that the City Attorney could usurp the
authority of the Board and make decisions that
thatBhe Board aoard is ttach a resoluonsible for,tion
ut
has not approved. Trustee Wood recommended
to the policy affirming the two firms that were approved by the Board.
Trustee St. Aubin tabled the item until May.
Attorney Ken Lane distributed and reviewed the handbook updates.
Trustee St. Aubin suggested that at the next meeting, trustees will review and
update their handbooks.
Mr. Benson arrived to the meeting.
Trustee St. Aubin requested that ING Clarion manager search be added to the
agenda at the end of other business.
Attorney Ken Lane provided an update on William Blair. The Northpointe contract
was terminated effective April 13. The William Blair contract will begin effective
April 18. Northern Trust will handle the fund transfer between Northpointe and
William Blair.
The Disability Subcommittee recommended duty disability examinations for the
following 5 police and 5 fire retirees that have not been reviewed in the last three
years: Tina Brya, Ron Hansen, Terry Harvey, Frank Holmes, George Howell,
Frank Lain, Gina Lee, Sheryl Norton, Greg Odom, Michael Young.
The subcommittee informed the Board that the last re-examinations were in 2009.
Regular Meeting April 12, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
Trustee Oleson inquired how retirees are determined for disability re-examinations
and what happens if a retiree does not comply
Attorney Ken Lane reviewed the Ordinance regarding disability re-examinations.
Attorney Lane stated that retirees who do not comply may have their pensions
suspended.
Trustee St. Aubin suggested that April will be month for duty disability re-
examinations.
Karen Williams distributed a copy of the information packet prepared by the
Human Resource Department that would be available for members who could be
laid off. Karen Williams distributed information regarding refund of accumulated
contributions. The trustees discussed what type of information that the Board
could provide without giving financial advice. The City will meet with affected
employees and provide packets of information.
Karen Williams reported that John Jackson of Asset Consulting would like to meet
prior to the Joint Meeting in May to narrow down the list of firms for the Real
Estate Search to replace ING Clarion. The Board agreed to meet May 18, 2011
with John Jackson if he is available.
Due to quorum issues, the Board agreed to move the May official meeting date to
May 24, 2011.
The Board discussed the Actuary interviews for Gabriel, Roeder, Smith and
Company and EFI. Trustee Wood believed that she learned more with EFI.
Trustee Oleson stated that he believed EFI would provide more education and
better understanding of the actuary report.
Regular Meeting April 12, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Five
It was moved by Trustee Wood and supported by Trustee Oleson to hire EFI
Actuaries as the Actuary for the Police and Fire Retirement System and terminate
its contact with Gabriel, Roeder, and Smith.
Trustee Kraus expressed concern that the Employees Retirement System Board
could select a different actuary from the Police and Retirement Board.
Trustee Oleson requested that the ERS Board be informed of the Police and Fire
Retirement Board.
Adopted by the following vote: 6 — 0.
Trustee Wood thanked Trustee Kraus for all the hard work in the search and
selection process.
Trustee Kraus requested if the Board paid separately for Minute Master.
As a courtesy, Trustee Oleson suggested that Gabriel, Roeder and Smith be
contacted regarding the Board's decision.
The Joint Special Projects subcommittee will meet to review the RFP to re-send to
vendors.
Attorney Ken Lane informed the Board that the contract with the Project Manager
expired February 28, 2011. Attorney Lane drafted an extension to the contract
through May 31 for Board approval. The Board agreed to extend the contract
through May 31, 2011. Attorney Lane stated that any time beyond May 31 , 2011
will need a new contract
Karen Williams distributed and reviewed the Board Expense report for month
ending March 28, 2011.
It was moved by Trustee Wood and supported by Trustee Benson to adjourn the
meeting.
Adopted by the following vote: 6 -0
The meeting adjourned at 10:00 am.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
CITY OF LANSING
POLICE & FIRE and ERS RETIREMENT SYSTEM
JOINT BOARD
OFFICIAL MINUTES
Joint Meeting May 19-201-t `-
Council Conference Room Thursday; 9:a0 a:,rti}
10th Floor City Hall c ;
Lansing, MI ,
The meeting was called to order at 9:36 a.m.
A quorum of the Police and Fire Retirement System Board and the Employees
Retirement System Board was present.
Trustees present: (ERS), Dedic, Munroe, McCaffery, Parker, Robinson, Rose — 6.
(Police & Fire), Fabus, Hecksel, Oleson, St. Aubin, Wood — 5.
Other presents: John Jackson, Asset Consulting Group, Inc. (ACG); Karen Williams;
Eric Tumbarella, Finance; Attorney Kenneth Lane, Clark Hill Law Office (representing
the City Attorney's Office); Don Anderson, Mark Fetters, John Napoli, Northern Trust
Global Investments.
Trustee Dedic moved to Quarterly Cash Flow Recommendations. Mr. John Jackson
distributed Asset Consulting Group memo recommendations for the Police and Fire
Retirement System and the Employees Retirement System.
It was moved by Trustee Rose and supported by Trustee Parker to transfer$3,000,000
from the Northern Trust S & P 500 Index Fund—Non Lending portfolio to fund quarterly
cash withdrawals as recommended by Asset Consulting Group.
Adopted by the following vote: 6 - 0
It was moved by Trustee Rose and supported by Trustee Parker to transfer$5,000.00
from Northern Trust Securities Lending to Comerica for quarterly administrative
expenses.
Adopted by the following vote: 6 — 0
It was moved by Trustee Hecksel and supported by Trustee Oleson to transfer
$2,000,000 from the TRowe Price portfolio to fund quarterly cash withdrawals as
Council Conference Room Thursday, 9:30 a.m.
10th Floor City Hall
Lansing, MI Page 2
It was moved by Trustee Hecksel and supported by Trustee Oleson to transfer
$5,000.00 from Northern Trust Securities Lending to Comerica for quarterly
administrative expenses.
Adopted by the following vote: 5 -0.
Mr. Eric Tumbarella provided an overview of the Pension Administration
Software Project. Mr. Tumbarella reviewed the progress of the Request for
Proposals mailed to targeted vendors on behalf of the Retirement Board. Mr.
Tumbarella reported that the Project Manager's contract has expired and he
suggested that the contract be renewed to complete the selection process.
It was moved by Trustee Rose and supported by Trustee Parker for the
Employees Retirement Board to renew the Project Manager's contract.
Adopted by the following vote: 6 — 0.
It was moved by Trustee Hecksel and supported by Trustee Wood forthe Police
and Fire Retirement Board to renew the Project Manager's contract.
Adopted by the following vote: 5 — 0.
Trustee Rose requested to address the Joint Board regarding security for the
Retirement Office's data. Trustee Rose had concerns about Board liability if the
data was lost. Eric Tumbarella reviewed the current security information for City
of Lansing data. Data can be saved on special drives that are backed up each
night to the mainframe.
Trustee Wood requested that Eric Tumbarella prepare a written report regarding
security measures for retirement data. The Board requested that Eric
Tumbarella set up the special drive as the default on the Retirement Office's
computer.
It was moved by Trustee Robinson and supported by Trustee Munroe that the
special drive be set up as default on the Retirement Office's computer.
Adopted by the following vote: 6 — 0.
1 ._.__ .___.._J 1 .. T._.--- 1 1-_1___1 -.__1 _..._._ _.1_ _1 1__
Council Conference Room Thursday, 9:30 a.m.
10th Floor City Hall
Lansing, MI Page 3
Mr. Mark Fetters, Mr. Don Anderson and Mr. John Napoli of Northern Trust
Global Investments provided an overview of the Northern Trust Global
Securities Lending. Mr. Anderson provided a background and summary of the
lending process. The investment team also discussed historical earnings, and
provided a Securities Lending and Collateral Management Market Update. Mr.
Napoli discussed the Portfolio Detail and Summary.
John Jackson reviewed the risks associated with security lending products. The
Board discussed if they wished to continue securities lending and their risks
involved with the investment. The Board discussed three options: 1)terminate
security lending, 2) leave the investment "as is", 3) request that Northern Trust
lower the caps. Trustee McCaffery indicated that with any investment there is
risk, but the security lending process has provided the ERS Board with a good
investment and he would not like to see it terminated at this time. The Police
and Fire Retirement Board requested that this item be added to their meeting
agenda.
It was moved by Trustee Wood and supported by Trustee Hecksel forthe Police
and Fire Retirement Board to go into closed session to discuss attorney- client
privilege information, 8H of the Open Meetings Act.
Adopted by the following roll call vote: 5 — 0
Yeas: Fabus, Hecksel, Oleson, St. Aubin, Wood
Nays: 0
It was moved by Trustee Rose and supported by Trustee Parker for the
Employees Retirement System Board to go into closed session to discuss
attorney-client privilege information, 8h of the Open Meetings Act.
Adopted by the following roll call vote: 5 - 0
Yeas: Dedic, Munroe, McCaffery, Parker, Rose
Nays: 0
The Board recessed at 11:40 a.m.
The Board resumed session at 11:55 a.m.
It was moved by Trustee Wood and supported by Trustee Hecksel forthe Police
___j r:-- n +: ... ..+ Q—+— Q.,r, A +_ mwo fnr%Atnrr1 lnli+h tha China IntP_nrgtPfl
It was moved by Trustee Rose and supported by Trustee Parker for the
Employees Retirement System Board to move forward with the China Integrated
litigation based on a recommendation from Milberg, Inc.
Adopted by the following vote: 5 - 0
Mr. John Jackson provided a quarterly performance review of the Employees
Retirement System and the Police and Fire Retirement System investment
portfolios. Mr. Jackson discussed the Market Environment and provided an
executive summary of the Investment Reports presented to the Boards. Mr.
Jackson provided an equity analysis, fixed analysis and real estate analysis of
the retirement portfolios. Mr. Jackson provided an update on the Real Estate
Search to replace ING Clarion.
Trustee Wood inquired into the status of the Retirement Ordinances. Trustee Wood
asked that legal counsel provide an update on the Ordinances for the next Board
meetings.
It was moved by Trustee Rose and supported by Trustee Parker to adjourn the meeting.
Adopted by the following vote: unanimously
The meeting adjourned at 12:10 a.m.
Minutes approved on
Jerry Ambrose, Secretary
Scott Dedic, Chairperson Brad St. Aubin, Chairperson
Employees Retirement System Fire and Police Retirement System
r N
OFFICIAL PROCEEDINGS OF THE BOARD OFF
TRUSTEES
CITY OF LANSING :
POLICE AND FIRE RETIREMENT SYSTEM, �.
Regular Meeting May 24, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:37 a.m.
Present: Trustees Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood — 6.
Absent: Trustee Benson, Bernero
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department).
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of May
24, 2011.
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: 434. 1 death(s) Ronald Lyon, Police,
died 4/30/2011, age 66, spouse to receive 50%. Refunds made since the last regular
meeting amounted to $0.00. Retirement allowances paid for the month of April, 2011
amounted to $2,003,394.95. Total retirement checks printed for the P&F System: 660.
Total retirement checks printed for both systems: 1502. Domestic relations order
received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders
certified: 0.
There were no public comments for items on the agenda.
There were no applications for the Regular Age and Service Retirement.
Regular Meeting May 24, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
It was moved by Trustee Hecksel and supported by Trustee Fabus to go into
closed session to discuss sensitive medical information of a duty disability
applicant.
Adopted by the following roll call vote: 6-0
Yes: Fabus, Hecksel, Kraus, Oleson, St. Aubin
The Board recessed at 8:30 a.m.
The Board resumed session at 8:43 a.m.
It was moved by Trustee Hecksel and supported by Trustee Oleson to concur
with the Medical Director's recommendation and not approve the duty disability
request of#2010-F1109.
Adopted by the following vote: 6 — 0
There were no requests for Non Duty Disability Retirement.
Karen Williams reported that Mr. August Krymis, police department, submitted a
request for refund of his Accumulated Contributions of $28,658.50. Ms. Krymiis
was not vested.
It was moved by Trustee Fabus and supported by Trustee Kraus to refund the
accumulated contributions of Mr. August Krymis.
Adopted by the following vote: 6 -0.
It was moved by Trustee Hecksel and supported by Trustee Wood to excuse
Trustee Benson from the May Official Police and Fire Retirement Meeting.
Adopted by the following vote: 6 — 0.
Ms. Williams reported that she had spoken to Mr. Benson who requested am
Regular Meeting May 24, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Trustee Kraus reported that she had spoken the Mayor's office and notified the
Board that Mr. Benson did wish to remain a member of the Police and Fire Board.
Mr. Benson may be available to attend some session with advance notice. He
would like to remain involved.
Trustee St. Aubin provided a report of the Spring MAPERS Conference. He
discussed the Fraud Monitoring workshop. Trustee Kraus also attended the
Conference and also found the workshops informative. Trustee Oleson reported
that the Police and Fire System was in good shape compared to other systems in
terms of how the Board operates. Trustee Hecksel discussed the workshops led
by Attorney VanOverbeke. Trustee Fabus discussed the workshop dealing with
different pension plans that included hybrids and information on the emergency
financial manager.
Karen Williams updated the Board regarding Ms. Ursula Finney. The Retirement
Office received a copy of the demand letter from the City Attorney Office to the
estate representative of Ms. Finney. Attorney Ken Lane reported that the
representative opened the Estate and contacted the City of Lansing. Therefore,
the City did not have to open a claim.
Attorney Ken Lane distributed a memo and provided a legislative update of
pending Michigan House Bills. Attorney Lane discussed 4361 which was an
amendment to the Income Tax Act and its treatment of public pension income.
Attorney Lane also provided an overview of HB 4123 and HB 4156 — H7,
requiring a public pension system board to publish its annual report, budget, and
a listing of all expenditures on a website.
Attorney Ken Lane reviewed the provisions Fraud Monitoring Procedure policy.
The City Attorney has agreed to sign and be bound by the policy. Attorney Lane
stated the policy would establish a threshold for which a claim would be filed. The
City Attorney's Office would check the claim on legal grounds and then refer it to
the Retirement Board to proceed. Either the firm or Attorney Lane would present
the case to the Board. Asset Consulting Group would also review the claim and
inform the City Attorney if there are any issues. The Board would then authorize
the City Attorney to sign the legal retainer agreement to proceed.
Regular Meeting May 24, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
Trustee Wood requested that the Board attach a resolution to the policy affirming
the two firms that were approved by the Board.
Trustee Kraus suggested that the policy be voted upon separately, because in
the future the firms may change.
Trustee Wood expressed concern that a case can be brought by the City
Attorney's Office and pursued without consent from the Police and Fire Board.
Trustee Oleson requested that the policy be tabled until the next meeting after
Asset Consulting Group is consulted regarding a dollar threshold for the policy.
Attorney Ken Lane distributed and reviewed policy updates for the Trustee
Handbooks.
Attorney Ken Lane provided a review and distributed a memo of the Reciprocal
Retirement Act.
Attorney Ken Lane provided an update from the City Attorney's Office that the
Retirement Ordinance will be in its final form for next month's meeting.
Trustee St. Aubin reported that he had been contacted from Mr. Ronald Hansen
regarding medical re-evaluation for duty disability. Mr. Hansen had been
seriously injured in an accident that has limited his mobility. Mr. Hansen was
selected He has requested that he not be evaluated by the medical director at
this time.
Mr. Hansen also sent a letter of request to the Retirement Office request re-
instatement of his disability benefits due to his inability to work. Mr. Hansen's
pension benefits were suspended last fiscal year due to his outside earnings and
pension exceeded the amount of a police officer at his same rank. His pension is
reduced according to the Police and Fire Retirement Ordinance, pro-rated over
12 months. He would be eligible to receive a pension in July. The Board
discussed how overages from outside earnings are repaid.
Regular Meeting May 24, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Five
It was moved by Trustee Hecksel and supported by Trustee Fabus to remove Mr.
Hansen from the medical re-evaluation list.
Adopted by the following vote: unanimously
Karen Williams reported that 4 fire and 3 police members who did not submit
their information. A second notice will be sent those members informing them
that if their certification is not received, the monthly pension payment would be
subject to adjustment.
The Board selected Mr. Edward Bedecs to replace Mr. Ronald Hansen on the
duty disability medical re-examination list.
Karen Williams announced that the Real Estate Investment Search meeting would
be held June 8, 2011 at 8:30 a.m.
Karen Williams reviewed the Gabriel, Roeder, Smith minute master proposal for
calendar year 2010. Karen Williams explained that minute master comprised of all
the Board's minutes, contracts and decision in a searchable electronic database.
The Board has adopted Minute Master as its official records for minutes prior to
1999. The Board requested that the Retirement Office contact EFI and inquire if
EFI would adopt minute master and provide a proposal for its maintenance.
It was moved by Trustee Hecksel and supported by Trustee Wood to have the
Retirement Office inquire to EFI to provide Minute Master Services. If the Minute
Master is available, request that EFI submit a fee proposal to the Police and Fire
Board. If there are no Minute Master services available, the Board approves the
Gabriel, Roeder, Smith proposal with fees not to exceed, $2,650.
Adopted by the following vote: unanimously
Karen Williams updated the Board regarding the pension software. The Project
Manager reviewed the RFPs and provided a fee summary of the proposals. The
Police and Fire Board voted at the Joint Meeting to extend Dawn Polihonki's
Attorney Ken Lane drafted a contract extension for the Project Manager for the
period of six additional months.
The Board discussed terminating securities lending as recommended by Asset
Consulting Group. At the Joint meeting, Mr. John Jackson, Asset Consulting
Group reviewed the risks associated with security lending products. The Board
discussed if they wished to continue securities lending and their risks involved
with the investment. The Board discussed three options: 1) terminate security
lending, 2) leave the investment "as is", 3) request that Northern Trust lower the
caps.
Trustee Wood explained the original purpose of the fund to provide extra benefits
to retirees. Trustee Wood suggested that Asset Consulting Group provide a
written recommendation on the options regarding security lending.
It was moved by Trustee Fabus and supported by Trustee Hecksel to request the
Asset Consulting Group provide a written recommendation regarding the three
options outlined by John Jackson for securities lending at Northern Trust.
Additionally, the Board requests options regarding what can be done with the
reserves if withdrawn from Securities Lending.
Adopted by the following vote: unanimously
Karen Williams distributed and reviewed the Securities Lending Report Board
Expense report for month ending April 30, 2011.
It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the
meeting.
Adopted by the following vote: 6 -0
The meeting adjourned at 10:00 am.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:36 a.m.
Present: Trustees Fabus, Hecksel, Kraus, St. Aubin, Wood — 5.
Absent: Trustee Benson, Bernero, Hecksel
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department).
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
Official Minutes of the Joint Employees Retirement System Board and the Police
and Fire Retirement Board Meeting of May 19, 2011.
Adopted by the following vote: 5 - 0
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
Official Minutes of the Police and Fire Retirement System Board Meeting of May
24, 2011.
Adopted by the following vote: 5 — 0.
Secretary's Report.
r�
0 new fire member(s), 0 new police members, 0 reinstatement(s), 1
refunds , 0 transfers, 0 retired. Total: Active membership: 432. 1 '
death(s) Barbara Wojtysiak, died 4/27/2011, age 83, spouse of Police C
Retiree. Refunds made since the last regular meeting amounted to
$28,658.50. Retirement allowances paid for the month of May, 2011
amounted to $2,030,694.21. Total retirement checks printed for the P&F
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
There were no public comments for items on the agenda.
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve
following application for regular age & service retirement:
William Christiansen, Fire Department, 25 years, 8 months of service credits, age 55,
effective June 24, 2011.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve
following application for regular age & service retirement:
David B. Doerr, Fire Department, 25 years of service (with the purchase of 2 months of
universal buy-in time), age 50, effective June 15, 2011.
Adopted by the following vote: 5 — 0
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
following application for regular age & service retirement
Walter M. Holden, Fire Department, 25 years of service credits (with the purchase
of 2 months of universal buy-in time), age 51, effective June 16, 2011.
Adopted by the following vote: 5 — 0
It was moved by Trustee Hecksel and supported by Trustee Fabus to approve
the following application for regular age & service retirement
Thomas J. Kirchen, Fire Department, 25 years of service credits (with the purchase
of 2 months of universal buy-in time), age 55, effective June 15, 2011.
Adopted by the following vote: 5 — 0.
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the
following application for regular age & service retirement
Matthew A. Peacock, Fire Department, 25 years of service credits ( with the purchase
of 2 months of universal buy-in time) age 46, effective June 30, 2011.
Adopted by the following vote: 5 — 0
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
following application for regular age & service retirement
Lynn R. Pulver, Fire Department, 25 years of service credits (with the purchase of
2 months of universal buy-in time) age 49, effective June 19, 2011.
Adopted by the following vote: 5 — 0
It was moved by Trustee Hecksel and supported by Trustee Fabus to approve
the following application for regular age & service retirement
James E. Squire, Fire Department, 25 years of service credits (with the purchase of 2
months of universal buy-in time), age 53, effective June 15, 2011.
Adopted by the following vote: 5 — 0
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the
following application for regular age & service retirement
Jerome C. Tolbert, Fire Department, 25 years of service credits (with the purchase
of 12 months of universal buy-in time), age 59, effective June 18, 2011.
Adopted by the following vote: 5 — 0
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
following application for regular age & service retirement
Mark Wojtysiak, Fire Department, 25 years of service credits (with the purchase of
2 months of universal buy-in time) age 47, effective June 30, 2011
There were no requests for Duty Disability Retirement.
There were no requests for Non Duty Disability Retirements.
There were no requests for Refund of Accumulated Contribution.
It was moved by Trustee Hecksel and supported to Trustee Kraus to excuse Trustee
Oleson and Trustee Benson from the Police and Fire June meeting.
Adopted by the following vote: 5 — 0.
Karen Williams distributed information regarding upcoming MAPERS Events, Summer
Golf Outing, July 25, 2011 and MAPERS Fall Conference, September 18 — 20. Ms.
Williams requested that trustees who were interested in attending any of the MAPERS
events should contact the Retirement Office for registration.
Attorney Ken Lane provided a status update on the Police and Fire Retirement
Ordinance. The City Attorney Office is reviewing the historical information that was
extracted. Attorney Lane stated that the Ordinance had been updated with all the
collective bargaining amendments and it would be going to City Council for review.
Trustee Wood recommended that member of the Board be present to provide the Board's
recommendation of the amended Ordinance to the City Council e Ways and Means.
Attorney Ken Lane provided a legislative update of pending bills in the Michigan
Legislature. Attorney Lane reviewed Senate Bill 7 that would create the "Publicly
Funded Health Insurance Contribution Act" to require that all public employees
pay a certain percentage of the overall cost of the health insurance. Attorney
Lane stated that as the current bill is written, it does not apply to retirees.
T.-....L.... LJ....I.. 1 iL _4- I......I __ --I---4-;__ -F uQ nnr`n 4
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Five
The Board also discussed SB 409 would exempt Police and Fire Retirement pension from
Michigan state taxes.
Attorney Lane spoke with Milberg and Robbins, Geller and a $50,000 threshold
was suggested that could be included in the Fraud Monitoring Policy.
Attorney Lane reported that the City of Lansing did not get the lead plaintiff
position for the litigation against China Integrated.
The Investment subcommittee reviewed the Real Estate Investment interviews
and provided a recommendation to the full Board to select Prissa II to replace ING
Clarion.
It was moved by Trustee Kraus and supported by Trustee Wood to select Prissa II
as investment manager to replace ING Clarion.
Adopted by the following vote: 5 — 0
The Board discussed securities lending option provided by Mr. John Jackson,
Asset Consulting Group. Several of the Board members discussed with Mr.
Jackson the risks associated with security lending products. Trustee Wood
reviewed the original purpose of the fund was to provide extra benefits to retirees.
The Board agreed to maintain the current security lending investment with
Northern Trust.
Karen Williams reported to the Board that she provided a demonstration to the
State of Michigan to review the Retirement Office calculation spreadsheets.
Trustee Wood inquired about the security concerns for the Retirement Information
in the retirement analyst's computer. Trustee Kraus asked if the information was
backed up to an external drive or network drive. Trustee Wood recommended that
the Board request an external drive from Eric Tumbarella for retirement
information.
It was moved by Trustee Kraus and supported by Trustee Hecksel to adjourn the
meeting.
Adopted by the following vote: 6 -0
The meeting adjourned at 9:09 am.
Minutes approved on
Jerry Ambrose, 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, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:37 a.m.
Present: Trustees Fabus, Hecksel, Kraus (8:42), Oleson, St. Aubin, Wood — 5.
Absent: Trustee Benson, Bernero,
Others: Karen E. Williams, Finance Department, Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department).
It was moved by Trustee Wood and supported by Trustee Hecksel to approve the
Official Minutes of the the Police and Fire Retirement Board Meeting of July 19,
2011 with corrections.
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, 9 retired. Total: Active membership: 377. 0 death(s). Refunds made since
the last regular meeting amounted to $0.00. Retirement allowances paid for the month
of June, 2011 amounted to $2,046,717.02. Total retirement checks printed for the P&F
System: 669. Total retirement checks printed for both systems: 1509. Domestic
relations order received: 0. Domestic relations orders pending: 0. Eligible domestic
relations orders certified: 0.
There were no public comments for items on the agenda.
ivy
f"
Regular Meeting June 21, 2011
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
following application for regular age & service retirement:
Donald Bey, Police Department, 25 years, age 55, effective June 24, 2011.
Adopted by the following vote: 5 —0.
It was moved by Trustee Hecksel and supported by Trustee Oleson to approve
following application for regular age & service retirement:
Dennis Miller, Fire Department, 25 years of service (with the purchase of 2 months of
universal buy-in time), age 53, effective July 1, 2011.
Adopted by the following vote: 5 — 0
It was moved by Trustee Hecksel and supported by Trustee Oleson to approve
the following application for regular age & service retirement
Philip D. Sabon, Fire Department, 25 years of service credits (with the purchase
of 2 months of universal buy-in time), age 49, effective July 1, 2011.
Adopted by the following vote: 5 — 0
There were no requests for Duty Disability Retirement.
There were no requests for Non Duty Disability Retirements.
It was moved by Trustee Hecksel and supported by Trustee Fabus to approve
the following request for refund of Accumulated Contributions:
Dustin Belill, Lansing Police Department, $17,403.87
Adopted by the following vote: 5 — 0.
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Karen Williams distributed information regarding MAPERS Fall Conference, September
18 — 20. Ms. Williams requested that trustees who were interested in attending any of the
MAPERS events should contact the Retirement Office for registration.
Trustee Wood requested a resolution affirming the two Fraud Monitoring firms that the
Retirement Board chose to be added to Fraud Monitoring Procedure Policy. Attorney
Lane will draft a resolution for the next meeting.
Attorney Ken Lane provided a status update on the Police and Fire Retirement
Ordinance. The City Attorney Office is reviewing the historical information that was
extracted. Attorney Lane stated that the Ordinance had been updated with all the
collective bargaining amendments. Attorney Lane will discuss with the City Attorney
about moving the Ordinance to City Council for review.
Attorney Ken Lane provided an overview of the SAS 70 report compiled by
Northern Trust that discusses the safety precautions in place regarding their
system. Attorney lane suggested that John Jackson of Asset Consulting Group to
review the safety precautions and a final opinion for the view.
Attorney Ken Lane distributed a legislative memo of Senate Bill 7 that would create the
"Publicly Funded Health Insurance Contribution Act" to require that all public
employees pay a certain percentage of the overall cost of the health insurance.
Attorney Lane stated that as the current bill is written, it does not apply to retirees.
Karen Williams updated the Board that she talked with the Greg Stump of EFI to
determine if EFI has Minute Master Services. EFI did not have these services,
but would be willing to look into these services in the future.
Trustee Oleson inquired if there were any issues about keeping the Minute
Master with Gabriel, Roeder Smith.
Trustee Kraus stated that she did not think there would be an issue because
Minute Master was a separate issue.
Trustee Krause updated the Board that the Special Projects subcommittee
r r,%nncol frnm thA Rtate of Michiaan to develop pension software for
Regular Meeting June 21, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
The pension software would be purchased by the City of Lansing but hosted on
the State of Michigan system. The subcommittee narrowed the list down to five
vendors.
Trustee Oleson expressed concern regarding the contract process when a
software vendor is selected. Trustee Kraus stated that the Board would negotiate
with the vendor regarding the software and the Boards needs.
Attorney Lane reported to the Board that another municipality represented by
Clark Hill entered into a contract with the State of Michigan and the process did
not go well as expected. The State of Michigan did continue to repair the system.
as contracted. Attorney Lane expressed concern that this software proposed by
the State of Michigan has not been built.
Trustee Hecksel inquired if the retirement analyst's computer has been updated to
the network drive. The computer had not been updated. Trustee St. Aubin
suggested purchasing an external drive that would automatically back up data.
Trustee Wood stated that they should send information to the Retirement Office
regarding external drive.
Karen Williams distributed and reviewed the Investment and Securities Lending
Reports for month ending June 30, 2011.
It was moved by Trustee Hecksel and supported by Trustee Kraus to adjourn the
meeting.
Adopted by the following vote: 6 -0
The meeting adjourned at 9:09 am.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting August 16, 2011
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, Hecksel, Kraus, Oleson, St. Aubin, Wood — 6.
Absent: Trustee Benson, Bernero,
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department); Wade Elton, Paul Hood, Fire
Department; Chris Lake, Bryan Epling, IAFF.
It was moved by Trustee Wood and supported by Trustee Hecksel to approve Elie
Official Minutes of the Police and Fire Retirement Board Meeting of July 1%' 2(_tl
with corrections. s -�'
Adopted by the following vote: 6 - 0
75
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 1
refund(s), 0 transfers, 3 retired. Total: Active membership: 373. 1
death(s) Duane R. Christensen, Fire, died 5/25/2011, age 81, spouse to
receive 50%. Refunds made since the last regular meeting amounted to
$17,403.87. Retirement allowances paid for the month of July 2011
amounted to $2,082,066.59. Total retirement checks printed for the P&F
System: 674. Total retirement checks printed for both systems: 1520.
Domestic relations order received: 0. Domestic relations orders pending:
0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Fabus and supported by Trustee Hecksel to approve
following application for regular age & service retirement:
- - . - .. I __ -- - -r --- Gr) off-Mivc Aiirriict 1Q
Regular Meeting August 16, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
There were no requests for Duty Disability Retirement.
There were no requests for Non Duty Disability Retirements.
It was moved by Trustee Hecksel and supported by Trustee Oleson to approve
the following request for refund of Accumulated Contributions:
Jessica M. Showers, Lansing Police Department, $32,635.37
Matthew Priebe, Lansing Police Department, $16,822.55
Adopted by the following vote: 5 — 0.
It was moved by Trustee Hecksel and supported by Trustee Kraus to excuse
Trustee Benson from the Police and Fire Retirement System meeting.
Adopted by the following vote: 5 — 0.
Karen Williams provided an update on Trustee Benson. She talked with him by
phone. He was at home doing well and in good spirits. Trustee Oleson added
that he spoke with him during a Night Owl event.
Trustee St. Aubin requested approval to attend the NCPER Conference.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve
the chairperson's attendance to the NCPERS conference.
Adopted by the following vote: 5 — 0.
Karen Williams distributed hotel and registration material for regarding MAPERS Fall
Conference, September 18 — 20. Karen Williams announced upcoming Asset
Consulting Dates: John Jackson proposed a due diligence visit to Asset
Consulting Group. Trustee Oleson suggested a two night stay instead of the quick
turnaround.
Mr. Wade Elton, Lansing Fire Department spoke to the Board regarding the ability
of members to buy military time with 457 funds. Mr. Elton stated that he was
speaking on behalf of the fire fighter veterans and said that he had 14 names
Regular Meeting August 16, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Trustee St. Aubin stated that the Police and Fire Retirement Board would accept money
from any source as long as it done legally and appropriately. The Board does not
regulate who buys time or how time is purchased. However, the City administration
currently restricts the use of the deferred compensation monies for this purpose.
Trustee Oleson stated that he made a motion to refund Mr. Schultz his money. Trustee
Oleson explained his position that the refund may set a precedent. The City, not the
Board is responsible for administering the deferred compensation.
Trustee Hecksel stated that he would like to see the process for purchasing time
streamlined for the veterans. He added that Mr. Schultz paid for a service that was
rendered. Although Mr. Schultz did not use the report, the work was still done on behalf.
The Board discussed the matter and decided that it was inappropriate to refund the
money to Mr. Schultz from retirement plan.
Trustee Wood suggested that the Board send a letter of support to the administration to
amend the retirement ordinance.
Mr. Brian Epling stated the appropriate action is to move forward with amending the
Retirement Ordinance to allow for the ability of members to buy military time with 457
funds without separation of service. Mr. Epling stated that he has discussed the issue
with the City Attorney and Attorney Ken Lane.
Attorney Kenneth Lane opined that the Internal Revenue Service does allow purchase of
service credits with deferred compensation but does not compel plans to permit in-service
purchases. The Plan would have to permit this type of purchase but the current Ordinance
does not allow in-service purchases.
Trustee Wood expressed concern about the slow movement of the amended Retirement
Ordinance,
Attorney Lane stated that he will urge the City Attorney to movie the Ordinance to back to
City Council for review.
Trustee Kraus explained that the Deferred Compensation Plan has been amended to
allow transfers out of the plan for credit purchase. However, Trustee Kraus expressed
concern that the process be done correctly because the issue is with the Retirement
Ordinance. Trustee Kraus stated that as chair of the Deferred Compensation Committee,
she would not support any transfer that would jeopardize the tax-deferred status of the
457 plans.
Regular Meeting August 16, 2011
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 Hecksel to approve the
Fraud Monitoring Procedure Policy and Affirming Resolution and that this policy
will supersede any previous fraud monitoring procedure policies. The resolution
will be attached to the Policy and placed in the Trustee Handbook.
Adopted by the following vote: 6 — 0,
Karen Williams updated the Board regarding Duty Disability retirees. There were
two requests for conversions: Mr. Steven Mitchell and Mr. Eric Hall, effective
August 1. Mr. Hall owes money to the pension system because his income
verification reported that his outside income and duty disability was over the
allowed amount. Mr. Hall requested that his overage be spread over six months
instead of taking the money from his first check in which he converts to age and
service retirement.
It was moved by Trustee Hecksel and supported by Trustee Wood to allow Mr.
Hall to pay back the money owed to the retirement system in six equal
installments. Trustee Hecksel accepted a friendly amendment from Trustee Kraus
to the use three installments instead of six.
Adopted by the following vote: 6 -0.
Karen Williams also indicated the most of the re-exams have been scheduled with
Dr. Roth. Ms. Williams informed the Board that some of disability retirees had not
seen Dr. Roth before and there are no medical records in their retirement files.
Ms. Williams will work with Ms. Amy Frasier, Worker's Compensation to search for
the original files for these retirees.
Attorney Ken Lane requested to speak to the Board regarding a confidential legal
issue.
It was moved by Trustee Wood and supported by Trustee Heckel to close session
to review an attorney-client privileged legal matter.
Adopted by the following roll call vote: 6 -0.
Yes: Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood
No: 0
Karen Williams distributed and reviewed the Investment and Securities Lending
Reports for month ending June 30, 2011.
It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the
meeting.
Adopted by the following vote: 6 -0
The meeting adjourned at 9:38 am.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
CITY OF LANSING
JOINT POLICE & FIRE and
EMPLOYEES RETIREMENT SYSTEM
MINUTES
Joint Meeting August 16, 2011 ► `�'
�a
Council Conference Room Tuesday, 9:15 a.m. E ev)
10th Floor City Hall
Lansing, MI
The meeting was called to order at 9:30 a.m. -
A quorum of the Police and Fire Retirement Boards was present. ry c•3
N
Trustees present: (Police & Fire), Hecksel, Kraus, Oleson, St. Aubin, Wood — 5.
(ERS), Kraus, Parker, Rose — 3.
Other presents: John Jackson, Asset Consulting; Karen Williams Finance Department;
Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); James So,
Frances Coombes, Western Asset Management Company.
Mr. James So and Ms. Frances Coombes provided a Performance Review of Western
Asset Management Company. Ms. Coombes gave an organizational update of the
company. Mr. So discussed the current financial markets and provided an overview of
the ERS and Police and Fire portfolios.
Mr. John Jackson distributed memos and reviewed Asset Consulting Group
recommendations for Quarterly Cash Flow Withdrawals for the Retirement Boards. The
City of Lansing Police and Fire Retirement System requested $2.0 million to be raised
for the quarterly cash withdrawals.
It was moved by Trustee Wood and supported by Trustee Oleson to approve Asset
Consulting Group recommendation that the Police and Fire Retirement Board withdraw
$1.0 million from the Artisan portfolio and $1.0 million from the Mondrian portfolio to
fund quarterly cash withdrawals.
Adopted by the following vote: 5 - 0.
It was moved by Trustee Wood and supported by Trustee Oleson to transfer $5,000
from the Northern Trust Securities Lending Account to the Comerica account for
administrative expenses.
Joint Meeting August 16, 2011
Council Conference Room Tuesday, 9:15 a.m.
10th Floor City Hall
Lansing, MI Page 2
Mr. John Jackson distributed a memo and reviewed the SAS 70 Report for both
Retirement Boards. The SAS 70 Report contained information regarding the internal
controls issued by the Northern Trust Company for the year ended March 31, 2011.
ACG review included the following areas: Account Administration, Securities
Movement, Securities Custody and Reconciliation, Cash Movement and Reconciliation
and Securities Lending.
It was moved by Trustee Hecksel and supported by Trustee Kraus to accept the SAS 70
Report in accordance with the Police and Fire Retirement Board policy and contingent
upon a review by the Information Technology department.
Attorney Ken Lane stated that he will conduct Eric Tumbarella to review the controls
surrounding the use and implementation of technology in the SAS 70 report.
Adopted by the following vote: 5 -0.
Mr. John Jackson reviewed the upcoming Asset Consulting Group dates: Tuesday,
September 13, the Employees Retirement System Board Investment Subcommittee
would meet to discuss International Investment Search. Mr. Jackson also suggested
the first week of December for the Joint Boards to attend a due diligence visit at Asset
Consulting Group in Missouri.
Mr. John Jackson provided a quarterly performance review of the Boards Investments
and a Capital Markets update. Asset Consulting Group recommended that the Joint
Board further diversify its portfolios with the addition of multi-sector fixed income
strategy. Mr. John Jackson reviewed this type of investment and suggested that the
Joint Investment Board meet to review possible managers. Mr. Jackson will provide a
memo to both Boards outlining ACG's recommendation.
The Meeting adjourned at 11:31 a.m.
Minutes approved on
Jerry Ambrose, Secretary
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting September 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:37 a.m.
Present: Trustees Fabus, Kraus, Oleson, St. Aubin, Wood — 5.
Absent: Trustee Benson, Hecksel, Bernero, r- �
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hilt
Law Office (representing the Law Department). - C-?
It was moved by Trustee Kraus and supported by Trustee Oleson to approve: thy, .
Official Minutes of the Police and Fire Retirement Board Meeting of August 1f;
2011.
7 c�
Adopted by the following vote: 5 - 0
It was moved by Trustee Kraus and supported by Trustee Wood to approve the
Official Minutes of the Joint Police and Fire Retirement System and the
Employees Retirement System Board Meeting of August 16, 2011.
Adopted by the following vote: 5 - 0
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 2 refund(s), 0
transfers, 1 retired. Total: Active membership: 370. 0 death(s) Refunds made
since the last regular meeting amounted to $49,457.92. Retirement allowances
paid for the month of August 2011 amounted to $2,090,794.01. Total retirement
checks printed for the P&F System: 675. Total retirement checks printed for
both systems: 1521. Domestic relations order received: 0. Domestic relations
orders pending: 0. Eligible domestic relations orders certified: 0.
It was moved by Trustee Fabus and supported by Trustee Wood to approve
Regular Meeting September 13, 2011
Council Conference Room Tuesday, 8.30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
There were no requests for Duty Disability Retirement.
There were no requests for Non Duty Disability Retirements.
It was moved by Trustee Oleson and supported by Trustee Kraus to approve the
following request for refund of Accumulated Contributions:
Richard Warner, Lansing Fire Department, $23,391.91
Remson Jack, Lansing Police Department , $25,426.92
Ryan Smith, Lansing Police Department, $16,991.08
Adopted by the following vote: 5 — 0.
It was moved by Trustee Oleson and supported by Trustee Fabus to excuse
Trustee Benson and Trustee Hecksel from the Police and Fire Retirement
System September meeting.
Adopted by the following vote: 5 — 0.
Karen Williams announced upcoming Asset Consulting Dates: September 20 will
be a golf outing for Trustees who are planning to attend MAPERS.; October 26 is
the rescheduled date for Trustee Training, October 26 is also the date for the
interviews for the Multi-Sector Fixed Income Interviews, starting at 8:30 a.m., and
December 6 -7 for the due diligence visit to Asset Consulting.
Attorney Ken Lane updated the Board regarding the Fraud Monitoring Policy.
Attorney Lane will have the City Attorney sign the policy and he will complete the
resolution and attach it to the policy for the Trustee Handbooks. Attorney Lane
reported to the Board that all the policies suggested by MAPERS have been
adopted by the Board.
Attorney Ken Lane updated the Board regarding the PRISSA II Investment
agreement. Attorney Lane reported that the agreement will be signed by the
chairperson and executed to go in effect by September 30, 2011. Attorney Lane
explained that the capital call notices will come fifteen days prior to the
commitment date.
WnrAn \A/Minma rannrtarl that fni it ra-axam-, cmmnipti-d Two of the other exams
Regular Meeting September 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Karen Williams reported to the Employees Retirement System Board that MES
Solutions has expanded and has offered the services of its list of physicians in the
Southwest region. Dr. Roth belongs to the MES Solutions group.
Attorney Ken Lane opined that Dr. Roth as the medical director is the original point
of contact. A referral to one of the other doctors on the MES solutions list should
be come from Dr. Roth.
Karen Williams discussed the upcoming election for the Fire Trustee Robert Oleson.
Trustee Hecksel and Trustee Fabus were designated as election inspectors for the
election. Karen Williams provided a draft of the posting with possible dates for the
election.
It was moved by Trustee Wood and supported by Trustee Kraus to approve the Election
Posting for the Fire Trustee position.
Adopted by the following vote: 6 — 0.
John Jackson of Asset Consulting Group (ACG) has provided a memo with the
recommendation that the City of Lansing Police & Fire Retirement System conduct a
review of its overall fixed income allocation and that the addition of a multi-sector fixed
income strategy be introduced to provide greater diversification.
It was moved by Trustee Wood and supported by Trustee Oleson to approve the Asset
Consulting Group recommendation to add a multi-sector fixed income strategy to provide
greater diversification.
Adopted by the following vote: 6 —0.
Karen Williams reported to the Board that Artisan letter of direction for quarterly cash flow
withdrawal need a medallion guarantee and a resolution certifying the authorized signer
list within the last 60 days. Ms. Williams explained the Bank would provide the medallion
guarantee.
It was moved by Trustee Wood and supported by Trustee Oleson that Brad St. Aubin be
certified as the authorized signer for Artisan Investment.
Adopted by the following vote: 6 — 0.
Trustee Kraus updated the Board that the Special Projects subcommittee
__ r,_a:........ __4.
Regular Meeting September 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
Upon reviewing, the group determined that three of the companies did not meet
the necessary criteria to move forward. The group suggestion was to move
forward with two finalists and have demonstrations either on-site or via a web
demo. Karen Williams reviewed the two finalists and her, recommendation.
Trustee Kraus reminded members that the costs listed are preliminary. Final costs
would be negotiated with the vendor. Trustee Kraus requested members who
would like to attend the demonstrations. Trustee Kraus stated that she would
contact Eric Tumbarella and Dawn Polihonki to set up the demonstrations.
Trustee Kraus reminded members that the costs listed are preliminary. Final costs
would be negotiated with the vendor. Trustee Kraus requested members who
would like to attend the demonstrations. Trustee Kraus stated that she would
contact Eric Tumbarella and Dawn Polihonki to set up the demonstrations.
Trustee Rob Oleson recommended that the computer equipment be updated for
the Retirement Office. Trustee Kraus believed that the computer equipment had
not been replaced for approximately 6 -10 years. Trustee Rose of the Employees
Retirement System had suggested a laptop. The Police and Fire System had a
concern that if a laptop was purchased that it did not leave the City premises due
to the confidential data that may be contained on the system
It was moved by Trustee Kraus and supported by Trustee Fabus to approve a
budget not-to-exceed $2,000 to attain computer workstation for the Retirement
Office.
Adopted by the following vote: 6 - 0
Karen Williams reviewed the Investment and Securities Lending Reports for month
ending August 31, 2011.
It was moved by Trustee Fabus and supported by Trustee Oleson to adjourn the
meeting.
Adopted by the following vote: 6 -0
The meeting adjourned at 9:32 am.
Minutes approved on
Jerry Ambrose, 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 18, 2011
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, Hecksel, Kraus (8:35), Oleson, St. Aubin, Wood — 6.
Absent: Trustee Benson, Bernero,
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department); Mr. Brian Epling, IAFF; Mr. Greg
Stump, F_FI Actuaries.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
Official Minutes of the Police and Fire Retirement Board Meeting of September 13,
2011.
Adopted by the following vote: 6 - 0
Mr. Brian Epling, IAFF provided public comments regarding a voluntary 20 year
Retirement option for the police and fire system. Mr. Epling informed the Board
that the union has talked with the administration regarding ideas for ways to-retain
membership and to recall laid off fire members. This voluntary 20-year' optf:on
would provide a reduced pension for members who chose to retire and be cost -
neutral to the system. Mr. Epling discussed that an actuarial evaluation was
requested and completed via the Board chairman. ` ;3
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 3 refund(g),; 0 c_
transfers, 1 retired. Total: Active membership: 364. 3 death(s), Edward N. Dailey,
Police, died 8/26/2011, age 95, no surviving beneficiary; Raymond F. Doyle, Fire, died
9/22/2011, age 81, no surviving beneficiary; William Cochran, Police, died 10/3/2011,
age 80, spouse to receive 50%. Refunds made since the last regular meeting
amounted to $82,800.99. Retirement allowances paid for the month of September
Regular Meeting October 18, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
Mr. Greg Stump, EFI Actuaries provided a presentation for the Police and Fire
Retirement Board. Mr. Stump provided an Actuarial background of pension
funding and the factors that impact plan funding. Mr. Stump discussed Funding
Policy, and potential changes. He provided examples of closed amortization.
Mr. Stump addressed the actuarial evaluation and reviewed voluntary 20 year
option for the Police and Fire Retirement System. Mr. Stump recommended a
retirement window and discussed background, provisions, analysis and risks
associated with the 20 year option.
Mr. Greg Stump discussed the transition to EFI Actuaries and a proposed
timeline for upcoming actuarial projects and meeting.
It was moved by Trustee Fabus and supported by Trustee Kraus to approve
following application for regular age & service retirement:
Melvin Johnson, Police, 17 years, 1 months of service credits, age 55,
effective September 1, 2011. (From Deferred)
Adopted by the following vote: 6 — 0.
There were no requests for Duty Disability Retirement.
There were no requests for Non Duty Disability Retirements.
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
following request for refund of Accumulated Contributions:
Ryan Kellom, Lansing Police Department, $7,103.02
Brian R. Rasdale, Lansing Police Department, $21,398.23
Josh Traviglia, Lansing Police Department, $7,318.02
Adopted by the following vote: 6 — 0.
It was moved by Trustee Hecksel and supported by Trustee Wood to excuse
Trustee Benson from the Police and Fire Retirement System October meeting.
Adopted by the following vote: 6 — 0.
Regular Meeting October 18, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Trustee Hecksel provided a MAPERS Fall Conference Report. He discussed the
sessions at the Conference: New Trustee Workshop, Pension Fundamentals,
Michigan Economics and Forecasts. He stated that it was a very good conference
and good networking opportunity.
Trustee Oleson also attended MAPERS and discussed Transition Managers, new
in Michigan. Trustee Oleson informed the Board that at the time of transition,
monies can be lost. These managers assist when monies are moved from one
investment to another. Trustee Oleson suggested that he would contact Asset
Consulting regarding the transition managers that he met at MAPERS.
Trustee Brad St. Aubin provided a NCPERS Fall Conference Report. Trusteee St.
Aubins attended sessions: Emerging Markets, Pension: Past, Present, Future,
Drop programs, and Globalization. Trustee St. Aubin stated that the Globalization
was very good and he would like to pass his name on to MAPERS as a future
speaker.
Karen Williams announced upcoming Asset Consulting Dates: October 26 is the
rescheduled date for Trustee Training, October 26 is also the date for the
interviews for the Multi-Sector Fixed Income Interviews, starting at 8:30 a.m., and
December 6 -7 for the due diligence visit to Asset Consulting.
Karen Williams requested Board approval for membership renewals for MAPERS,
IFEPB and NCPERS. The fees are: MAPERS, $50.00; 1/2 IFEBP, $377.50, 1/2
NCPERS, $112.50. The IFEPB and NCPERS dues are split with the Employees
Retirement System.
It was moved by Trustee Oleson and supported by Trustee Wood to pay dues
renewal for MAPERS, IFEBP and NCPERS from securities lending.
Adopted by the following vote: 6 — 0.
Mr. Brian Epling, IAFF, requested and was granted permission to add additional
comments regarding the voluntary 20-year Retirement option. Mr. Epling stated
that he had numerous conversations with administration regarding their intention
to bring employees back as part of the option. Mr. Epling stated that 40 names
were submitted to the actuary for evaluation of this proposed program. Mr. Epling
A,,..... a _L---- LL._,. L__..- ---..--- ----- �1-- - . , . .
Regular Meeting October 18, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Four
Attorney Ken Lane updated the Board regarding the SAS 70 Report Policy. He
has contacted Mr. Eric Tumbarella, IT Department to review the technology
aspects of the SAS Report. Attorney Lane will follow up with Mr. Tumbarella for a
report.
Trustee Kraus requested and was granted permission to leave the meeting.
Attorney Lane updated the Board on the Police and Fire Retirement Ordinance.
He stated that the City Attorney's Office is still reviewing the draft. Attorney Lane
stated that he will continue to request action on the Ordinance.
Trustee Wood requested that the legal counsel have the Police and Fire
Retirement Ordinance completed by the next meeting. Trustee Wood further
requested that the chair request that the City Attorney be at the next meeting if the
Ordinance is not complete.
Karen Williams reported that approximately 2/3 of the exams completed. There
was one remaining duty disability retirees whose information was not located by
the Medical Director. Trustee St. Aubin reported that he spoke with Ms. Williams
regarding contacting the previous medical director for files. Ms. Williams reported
to the Board that Ms. Gina Lee requested a copy of her medical report from the
Police and Fire Board. Her request was denied. The Board agreed to review all of
the reports at one time when they are received. Attorney Ken Lane inquired if a
copy of the report was sent to Human Resources. Ms. Williams informed the
Board that once a determination has been made, a copy of the medical report is
forwarded to Human Resources.
Karen Williams discussed the Fire Trustee election. The posting for the position was
distributed October 4, 2011. The deadline for nominating petitions would be November 4,
2011.
Attorney Ken Lane provided a legislative update from MAPERS regarding amendments to
Public Act 314. Attorney Lane also distributed a memo that discussed the Economic
Vitality Incentive Program, Public Act 63 of 2011, as a -replacement to the statutory
revenue sharing. The legislation identified three different measures or categories that
eligible cities, villages and townships need to accomplish to receive state funding under
the program. A community would receive 1/3 of the maximum funding amount for each of
the three categories it fulfills the specific requirements.
Trustee Wood provided an explanation to the Board that approximately 1/3 of the funding
from the State of Michigan was statutory.
Trustee St. Aubin inquired about the new health care cost sharing agreement that would
allow municipalities to pay no more than 80% of health care. Trustee St. Aubin asked if a
contract is open due to negotiation or modification, would active employees be subjected
to the new health care act at that point. Trustee St. Aubin stated that his understanding is
that the entire bargaining unit would subject to new premium changes.
Attorney Lane stated that modification to current agreements can subject that bargaining
unit to the new health care premium act. All agreements executed after May 1, 2012 will
be subject to the Health Care Premium changes.
Trustee St. Aubin requested information from Attorney Lane regarding Fiduciary liability
insurance. In the past, the Administration has made decisions not approved by the board.
Attorney Ken Lane stated that the Board does have the authority to purchase Fiduciary
Liability insurance. Attorney Ken Lane also discussed governmental immunity and how it
covers trustees except for gross negligence.
Karen Williams distributed information regarding the pension software
demonstration. Ms. Williams met with Dawn Polihonki to set up an agenda for
Wednesday, November 9 in the 3 d Floor computer room. The demos will be in
the form of a webinar. Ms Williams stated that the demos will feature pension
administration, the retirement calculator and web site estimator, reports and data
conversions. Ms. Williams updated the Board that the external drive to back up
the retirement data files has been purchased and implemented.
Karen Williams reviewed the Investment and Securities Lending Reports for month
ending September 30, 2011.
It was moved by Trustee Hecksel and supported by Trustee Oleson to adjourn the
meeting.
Adopted by the following vote: 5 -0
The meeting adjourned at 10.32 am.
Minutes approved on
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting November 8, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:36 a.m.
Present: Trustees Fabus, Hecksel, Kraus, Oleson, St. Aubin — 5.
Absent: Trustee Benson, Bernero, Wood
Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill
Law Office (representing the Law Department); Mr. Brian Epling, Fire Department.
F_
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve tN
Official Minutes of the Police and Fire Retirement Board Meeting of October
2011.
Adopted by the following vote: 5 - 0
There were no public comments for items on the agenda.
r ,
-a
Secretary's Report.
0 new fire member(s), 0 new police members, 0 reinstatement(s), 3
refund(s), 0 transfers, 1 retired. Total: Active membership: 360. 3
death(s). Joyce Borseth, died 9/12/2011, age 83, spouse of Police retiree;
Margaret Schineman, died 9/20/2011, age 84, spouse of Fire retiree; Rita
Dennany, died 9/22/2011, age 79, spouse of Fire retiree. Refunds made
since the last regular meeting amounted to $35,819.27. Retirement
allowances paid for the month of October 2011 amounted to $2,115,242.56.
Total retirement checks printed for the P&F System: 675. Total retirement
checks printed for both systems: 1521. Domestic relations order received:
0. Domestic relations orders pending: 0. Eligible domestic relations orders
certified: 0.
There were no requests for Regular Age and Service Retirement.
Regular Meeting November 8, 2011
Council Conference Room
Tuesday, 8:30 a.m.
10th Floor, City Hall page Two
Lansing, MI
It was moved by Trustee Fabus and supported by Trustee Hecksel to approve
the following request for refund of Accumulated Contributions:
Luke Mardigian, Lansing Police Department, $21,711.60
Adopted.by the following vote: 5 — 0.
It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse
Trustee Benson and Trustee Wood from the Police and Fire Retirement System
November meeting.
Adopted by the following vote: 5 — 0.
ed
Trustee Hecksel provided his IFEBP Annual Confspoke about renceuppoming trends.eort. He He
the opening speaker, Lou Holtz and futurist p
attended sessions at the Conference that includes workshops for new trustees. He
stated that it was a very good conference and good networking opportunity.
Trustee Oleson also attended the IFEBP Annual
Fire Conference
System and other systems
around discussed
his
comparison of the City of Lansing Police
around the country. Trustee Oleson informedefiedinvestments.
th Board
hat thePolicerid Fire
ire
system is on the cutting edge of having a w
informed the Board that commodities are the new investment trend.
Trustee Antonia Kraus provided a review of the sessions that she attended at the
IFEBP. Trustee Kraus informed the Board that
are terminated. Troustee Kraus
where its
was suggested that Board track the managersTraditional
discussed expanding the asset reviewed tolon due to poss possibly the include alinvestments such as
asset mix should b
commodities, private advisors and hedge funds.
Trustee Fabus discussed seminars regarding the changing role in governments,
and the globalization of economies, and a discussion of the defined contribution
versus defined benefit plans.
Maggie Murphy, Fire Station Captain, addressed the Board regarding assistance
and direction for firefighter Josh Palmer. Captain Murphy informed the Board that
1,4, D�Imor iQ in gPrious twin and can not perform the duties as a firefighter.
Regular Meeting November 8, 2011
Council Conference Room
Tuesday, 8:30 a.m.
10th Floor, City Hall Page Three
Lansing, MI
Captain Maggie Murphy inquired if the medical doctor stated that Mr. Palmer can
return to.work.
Trustee St. Aubin stated that it was not appropriate for the Board to speak on
behalf of Mr. Palmer and what was included within his report.
Attorney Ken Lane opined that in accordance with HIPPA law, it is not appropriate
to discuss Mr. Palmer's medical report. Attorney
Medical report.o reviewed the
Ordinance that the Board can only concur with
Captain Maggie Murphy suggested having
three
doctor. Palmer, review panel and
requested direction regarding what can be done f
Attorney Ken Lane opined that Mr. Palmer could re-apply or the ordinance would
need to be modified to allow other alternatives.
Trustee Hecksel stated that he believes there is frustration ca e M udical
Director makes the determination and that there is no appealprocess.
Tstee
Hecksel stated that he is confident in Dr. Roth's ability.
Trustee Kraus explained that it is not appropriate for the Bo rd to make decision
before the Board
regarding' Mr. Palmer without an active disability application
Human Resources would be the appropriate department to discuss alternatives
regarding Mr. Palmer. Mr. Palmer or the Fire Chief can re-submit a request for a
disability evaluation.
Trustee St. Aubin suggested amendments to the travel policy to set a dollar limit
and to allow members to attend more than one out-of-state conference. Trustee
St. Aubin stated that the members of the Board are expected to stay updated with
the current education, legislation and investment options. There are various
conferences that provide different educational opportunities and members are
forced to choose bring between these conferences. Additionally, the costs of out-
of-state travel have become more expensive.
Trustee Oleson informed the Board that education is so important to performing
due diligence.
---r 4-
November 8, 2011
Regular Meeting Tuesday, 8:30 a.m.
Council Conference Room
10th Floor, City Hall Page Four
Lansing, MI
moved by Trustee Kraus and supported to Trustee Oleson to amend the
It was per individual, per calendar
Police and Fire Board Travel Policy to allow $5,000
year for out-of-state conference.
Oleson inquired if the Board would still have the ability to approve food
Trustee
d the dollar amounts within the policy.
and travel expenses that excee
Attorney Ken Lane opined that the Board has the ability to suspend the policy to
approve certain food and/or travel expenses.
Adopted by the following vote: 5 - 0
Karen
Williams reported that there was one remaining duty disability retiree whose
information was riot located by Human Resources. Another
the hetiree hassabili been on duty
ty retiree
inf
has questioned why a re-evaluation is required sin the
bilit for more than five years. Ms. Williams drafted rviewed the letter ranld it
ree
disa Y Attorney Ken La
regarding the current board policy.
will be signed by the chairperson and mailed to the retiree.
Trustee
Oleson inquired if the pension can be suspended if the retiree does the
not
I . Attorney Lane opined that the Board does have in accordance With bility to d the
comp y with Boards request
pension if the retiree does not comply
Ordinance.
the Fire Trustee election. The
Karen Williams updated the Board regarding petition from Trustee Robert Oleson.
Retirement Office received one nominating e Retirement Office and sent to the
The nominating petition was verified by
tar of the Board for certification of results. The certification will be brought
Secretary
before the Board for review and approval next meeting.
Kar
en Williams distributed a memo from Asset Consulting Group with a
recommendation for the Multi-Sector allocation. The Board tmednt subcomtmitteer
Franklin Templeton Global Multi-Sector Plus strategy in
nance
uty
ctor
Kare
n Williams received notification from Angela Be
and City Contribution but on was
and reported to the Board that on OcTheerCont Contribution was $8,310,000 minus
made to the Retirement System.
-r 4-k- ki winPtP(i amount pending results of the actuarial valuation, so as
November 8, 2011
Regular Meeting Tuesday, 8:30 a.m.
Council Conference Room
10th Floor, City Hall Page Five
Lansing,.Ml
Karen Williams announced that the Pension Software Deas mo
with dul dfro r
November.9. Ms. Kraus notified the Board that B rq
consideration due to their current work load. Ms.B Kraus
rd reco mo prendo that
the
Board review the Byrne demo and decide if the
adding an additional vendor.
Karen Williams reviewed the Investment and Securities Lending Reports for month
ending October 30, 2011.
The meeting adjourned at 9:46 am.
Minutes approved on
Jerry Ambrose, 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 December 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI
The Board was called to order at 8:36 a.m.
Present: Trustees Fabus, Hecksel, Oleson, St. Aubin, Wood — 5.
Absent: Trustee Benson, Bernero, Kraus
Others: Karen E. Williams, Angela Bennett, Finance Department; Attorney Ken
Lane, Clark Hill Law Office (representing the Law Department); Gregory Stump,
EFI Actuaries.
It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the
Official Minutes of the Police and Fire Retirement Board Meeting of November 8,
2011 .
Adopted by the following vote: 5 - 0
It was moved by Trustee Wood and supported by Trustee Hecksel to approve the
Official Minutes of the Joint Employees Retirement System and the Police and
Fire Retirement system Boards Meeting of November 17, 2011.
Adopted by the following vote: 5 — 0.
Secretary's Report.
0 new fire member(s), 4 new police members, 0 reinstatement(s), 1
refund(s), 0 transfers, 0 retired. Total: Active membership: 363. 3
death(s) Armand Brown, Fire, died 11/1/2011, age 70, spouse to receive
50%; Lucy Bond, died 10/29/2011, age 87, spouse of Police retiree;
James F. Sartor, Police, died 11/25/2011, age 79, spouse to receive
50%. Refunds made since the last regular meeting amounted to
$21,711.60. Retirement allowances paid for the month of November
2011 amounted to $2,089,274.13. Total retirement checks printed for the
o-74 T 4--1 ro+iromonf rharks nrinted for both systems:
Regular Meeting December 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Two
Karen Williams reported that there was one request for Duty Disability from
Applicant #2011-P1213.
It was moved by Trustee Hecksel and supported by Trustee Fabus to move
Application #2011-P1213 to the Disability Committee and to be forwarded to the
Medical director.
Adopted by the following vote: 5 -0.
There were no requests for Non Duty Disability Retirements.
It was moved by Trustee Fabus and supported by Trustee Hecksel to approve
the following request for refund of Accumulated Contributions:
Andrew Norton, Lansing Police Department, $32,935.87
Adopted by the following vote: 5 — 0.
It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse
Trustee Benson from the Police and Fire Retirement System meeting.
Adopted by the following vote: 5 — 0.
Trustee Hecksel provided a report of the Asset Consulting Group Due Diligence
Visit. The trustees met with the investment analyst and reviewed the selection
process for investment recommendation. Trustee Hecksel was impressed with
the support team.
Trustee Oleson also reported that Asset Consulting Group discussed the current
fee arrangement with the Retirement Boards. Trustee Oleson believed that the
overall visit was informative.
Mr. Gregory Stump, EFI Actuaries presented the 2010 Valuation of the Police
and Fire Retirement System. Mr. Stump reviewed the actuarial background of
pension funding. Mr. Stump discussed the matching of results with the prior
actuary. 'Mr. Stump reviewed the current valuation on the effect of the Board's
five-year smoothing on funding contributions.
Regular Meeting December 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor, City Hall
Lansing, MI Page Three
Mr. Greg Stump suggested that the Board implementing a funding policy. The
Board discussed the amortization period. Trustee St. Aubin explained that the
former Finance Director changed the amortization period without Board approval.
Mr. Stump explained the effect of the amortization policy on contributions and
suggested a closed amortization to pay off the unfunded liability. Mr. Stump will
have additional recommendation after the completion of the Experience Study.
Mr. Stump provided a schedule of upcoming studies, valuations and meeting for
2012.
Attorney Ken Lane updated the Board regarding the Ordinance. Attorney Lane
stated the definition of Final Average Compensation would need to be confirmed
to be complete the Ordinance review. The Board requested that Attorney Lane
provide the definition to the Union representatives for review. Attorney Lane can
update the Board next month.
Attorney'Ken Lane discussed Trustee Liability Insurance. Attorney distributed and
informed the Board regarding the section of the 5/16/2011 budget resolutions
regarding Civil Actions, Claims and Damages. The section would indemnify
Trustees performing within the scope of their duties.
Trustee Wood informed the Board that this section is not always included in the
Budget. ''Therefore, the Board may need to check with Council to see if this
section is included each year.
Attorney Ken Lane provided an update on the Invacare litigation. Attorney Lane
also provided a legislative update.
Karen Williams provided an update on the duty disability re-exams. The
Retirement Office has received reports for the completed exams. There are four
outstanding retirees who have not had exams. There is no medical
documentation on file for one of the retirees. The Retirement Office contacted the
former medical director, who indicated that he did not keep the City of`Lansing
medical reports.
It was moved by Trustee Hecksel and supported by Trustee Oleson to recess to
allow the Disability Committee to meet and review the Medical reports received by
the Board and discuss the outstanding retirees who had not been scheduled for
ovomc
Regular Meeting December 13, 2011
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 Hecksel to resume
session.
Adopted by the following vote: 5 — 0.
The Board resumed at 10:05 a.m.
It was moved by Trustee Hecksel and supported by Trustee Oleson to refer Mr.
George Howell to the medical director for re-exam.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Hecksel and supported by Trustee Fabus to allow Mr.
Manuel Little to convert in March, 2012 to regular age and service retirement. The
committee will not incur the cost of the medical re-exam so close to conversion.
Adopted by the following vote: 5 -0.
It was moved by Trustee Hecksel and supported by Trustee Oleson to suspend
Ms. Sheryl Norton's duty disability pension until full compliance with the Board
requirement for re-examination.
The Board reviewed the Policy and discussed what happens if Ms. Norton's
complies with the Board's request. The suspended checks will be given to Ms.
Norton.
The Retirement Board sent two requests to Ms. Norton for re-examination signed
by the chairperson. Ms. Norton has not contacted the Retirement Office to
schedule a re-examination.
Attorney Ken Lane discussed the procedure if Ms. Norton does not comply with
the Board's requirement.
Adopted by the following vote: 5 - 0
The Disability Committee recommends further review of Mr. Michael Young's re-
examination.
Regular Meeting December 13, 2011
Council Conference Room Tuesday, 8:30 a.m.
10th Floor., City Hall
Lansing, MI Page Five
Karen Williams updated the Board regarding the Fire Trustee Election. The
Retirement Office submitted a memo from Jerry Ambrose, secretary of the Board
certifying the election results. Mr. Robert Oleson filed a valid petition and ran
unopposed and had been declared the winner for the Office of Fire Department
Trustee to the Police and Fire Retirement System for the term of five years
beginning January 1, 2012 and expiring December 31 , 2016.
It was moved by Trustee Hecksel and supported by Trustee Wood to confirm the
election results for the Fire Trustee.
Adopted by the following vote: 5 — 0.
Karen Williams updated the Board regarding the Multi-Sector Fixed Income
Manager,Approval. The Investment subcommittee selected Franklin Templeton
as the new manager. The Joint Board reviewed memos distributed by Asset
Consulting Group regarding funding the new manager
It was moved by Trustee Hecksel and supported by Trustee Wood to approve
Franklin Templeton as the new Multi-Sector Fixed Income Manager, contingent
upon review by legal counsel.
Adopted by the following vote: 5 - 0
Karen Williams discussed the memo received from Angela Bennett, Deputy
Director regarding the City Retirement Contribution of $8,310,000 made on
October 31 , 2011.
It was moved by Trustee Wood and supported by Trustee Hecksel to recognize
the City Contribution.
Adopted by the following vote: 5 -0.
Trustee Oleson discussed increasing the Long/Short Equity Investment from 2.5%
to 5% as recommended by Asset Consulting Group.
It was moved by Trustee Oleson and supported by Trustee Hecksel to increase
+ho I nnn/Chnrf Prmity InVPCtmPnf frnm 9 501r, to Fi% cnntinaent ur)on receiat of the
Karen Williams distributed the 2012 Schedule of Meeting Dates for the Police and
Fire Retirement Board for approval.
It was moved by Trustee Hecksel and supported by Trustee Wood to approve the
2012 Schedule for Meeting Dates for the Police and Fire Retirement Board.
Adopted by the following vote: 5 — 0.
It was moved by Trustee Oleson and supported by Trustee Hecksel to provide a
letter of recommendation to City Council to continue Trustee Carol Wood on the
Police and Fire Board.
Adopted by the following vote: 5 — 0.
Karen Williams reported to the Board that there will be two Pension Software
Demonstration, Tuesday, December 20, 2011. Tegrit's Demo was scheduled for
9-11:30 a.m and Bryne, was scheduled for 1-3:30 p.m.
Karen Williams distributed and reviewed the Investment and Securities Lending
Reports for month ending November 30, 2011.
It was moved by Trustee Fabus and supported by Trustee Oleson to adjourn the
meeting.
Adopted by the following vote: 5 -0
The meeting adjourned at 10:24 am.
Minutes approved on
Jerry Ambrose, Secretary
Police & Fire Retirement System
Brad St. Aubin, Chairperson
Police & Fire Retirement System
City of Lansing
Police & Fire Retirement System
Statement of investment
Policies and objectives
Approved March 2011
Table of Contents
Page 1
I Purpose
Page 1
II. General Goals
Pages 1- 3
III. General Policies
Pages 3-4
IV. Investment Responsibilities
V. Investment Manager Responsibilities
Pages 4-5
VI.
Investment Management Guidelines and pages 6-9
Restrictions
I. Performance Measurement Standards
Pages 9-10
VI
Pages 10-11
VIII Performance Benchmarks
Page 12
IX. Securities Lending
GENEIRAL INVESTMENT POLICY
I. PURE policies which the
The purpose of this
currently consider app general investment p Police &Fire
statement is to identify a set g of Lansing
currropriatteo for the City ers.
joint Board (Board) stem") and to provide guidance to the investment manag
Retirement System("Sy
d may be revised from time to time by the
o s of the City of Lansing
This statement shall be reviewed Periodically an
Board to ensure that it Properly y reflects the investment policie
Police &Fire Retirement System.
II. GENERAL GOALS rement stem is to
The overall investment goal of the City of Lansing
Police menu atFire e with the prudent
competitive rate-of-return on portfolio assets com
obtain a comp t o f eturn risk taking ability (and Trustees' collective risk
man rule, the Retiremen y the investment of public retirement funds and its
Michigan statutes governing
tolerance), retirement benefits for members,retirees and their beneficiaries.
responsibility to provide
the City of Lansing in
objective to reduce costs incurred by Stem include
The System also has as an obj Stem. Other objectives of the Sy
administration of the Retirement Sy call from the established
achieving consistent returns. The Board has determined that the
controlling risks, and Public pension
other p
annual performance of the Plan' from�eturns achieved by d to consistently
benchmark nor should it vary substantially
s with similar goals and objectives. It is the intention of the oar
fund
meet or exceed Plan obiectives.
lu. GENERAL POLICIES
A. Safety of Principal of the
Avoidance of financial risk(default or compromise, of the financial integrity d or
a security) which is not to be confuse normawith l mmarket fluctuations).
issuer of prices due to
downward movement of security p Actuarial Interest Assum tion
B. Earn an Investment Return at Least E ual to the his investment
assumption as calculated by the actuary. (T
Exceed the interest
not necessarily recognize the full annual market value
return calculationportfolio)
fluctuations of securities held in the p
Diversification of Assets
C.
individual
general types of securities and by
diversified e exposure to any single type of security or individual
Assets should be
avoid undue
y g
issues in order
issue.
D.
Maintain Portfolio Assets in Hi hl Marketable Form m
1 To Provid
e,for unforeseen cash requirements of the Retirement ys e
2. To allow basic res
tructuring of the portfolio if the System's needs change ove
time.
ent managers, consistent with their tal rat specific of--breturn on
3. To allow the investor timize the long-term to
manage the portfolios so as to op
investment value instead of book
s. (Tot
al rate-of-return is based on market fluctuations
in the market
value (or cost) and takes into consideration the flti differ from the
prices of securities. As noted above,this calculation may
actuarial calculation of return).
under Michigan Public Acts 314 of 196e do mended within
4. Investments made are accepted under this s
the limitations Prescribed below
E. Le al Limitations an public Acts
forth in
The inve
stment guidelines and restrictions as
set
Orden nMscshall be adhered to at
314 of 1965 as amended and any City of Lan
all times.
F. Realized Gains and Losses on stock and fixed
gains and losses may be real in both the comet
Capital g the investment advisors believe such action is in the ain
income est
portfolios if losses may be limited by
interest of the Retirement System,however, the Board.
uidelines as may from time to time be set forth by
g
G. Asset Allocation
nd, and
Of the appropriate risk posture for the curPies the,Boa d has
Based on its determination term return from equity se
in light of the higher expected long-guidelines for the System:
the following asset-mix
Minimum
65.0°Io
Asset t�S 60.0°1°
55.0% 40.0%
Total Equity Investments 30.0% 35.0% 15.0%
Domestic Equity: Large Cap 5% 10.0%
Domestic Equity: Small/Mid 15.0%
Cap 5.0% 10.0°Io 5 Oo�O
International Equity 0 0% 5.0%
Global Long/Short equity
(Fund of Funds) 40.0%
30.0°70 35.0°10
Fixed Income Investment
(Includes Money 0.0% 5.0% 5.0%
Real Assets (includes Real
Estate)
INVESTMENT RESPONSIBILITIES stem's assets.
shave responsibilities related to the in
of the Sy
Several parties below.
These responsibilities are described briefly
Board of Trustees Process' In
in the investment P Policies
The Board for the System has the responsibility for manag g
risibility,the Board will establish anmon tormaintaand evaluate the
fulfilling this respo erations
and objectives. Within this framework,and other parties,to monitor whether e
investment manag
ers,bank custod 7 ectives. If necessary, the Board is
conform to the guidelines and actual results meet obi
king changes to achieve this.
responsible for ma
Investment Managers portfolios. They will
managers will construct and manage investment
The investment manag the asset mix within the
and sell such securities.,Ssno sand use only acceptable
select specific sec Will alsouallocatebrokerage
guidelines. They
More,detailed investment manager
this statement.
investment vehicles as outlined i e following section.
responsibilities are outlined in th
Bank Custodian summarize
and will regularly
arrangement will be utilized to accept and hold cash prior LU
ch cash in liquid, interest-bearing instruments-
investment
t manager, and to invest su
Other Parties
with im ortant responsibilities in the investment
septhe Board
actuary and investment consultant. rocess are the Fund's
as to the impact
Other parties P
The Fund s actuary ad folios i n a
of investment resu
lts on funding levels. The investment consultant
erssand portfolios
in
monitoring the investment results of the various investment c helps establish
quarterly basis, provides perspective on overall portfolio structure,
investment policy
issues, and assists in investment manager and custodian bank search
and selection.
V. INVESTMENT MANAGER'S RESPONSIBILITIES ccordance with this General Investment
Each investment manager must invest assets in applicable to their segment of the
E goals, and limitations
Policy and the specific their
objectives, gas resented to the Board at the
1 at all times with all applicable State
portfolio and adhere to their own investment Philosophy P
time of their selection. Each manager shall c he investment of pension assets,
and Federal laws and regulations concerning
particularly
Michigan Public Acts 314 of 1965 as. Additionally,
y,follows:
each
manager must
provide periodic and effective communications to the
A. Initial1 and/or as Necessar Thereafter
ing the manager's acceptance of the
tatement
performancewritten standards erein sgated.
2.
A written statement describing, in brief form, what specific investment
ram each manager intends to undertake to achieve the objectives an
Pro g
goals herein stated.
3. A written notification of any change in investment philosophy.
B. At Least Quarterly
composition showing asset structure for each major class of security-
portfolio coin P
b individual security, showing both cost and market value (except for
Positions y the unit position and unit value).
commingled assets, in which case, showing
_ i_,..L. 1;ntc
C. At Least Annually,
'ci ate in review meetings; the agenda to include,but not restricted to:
Parts p
1. A review and reappraisal of the aforementioned investment program.
2. A commentary on investment results.
synopsis of the key inve
3. A stment decisions made by the manager, the impact
on recorded results, and the underlying rationale.
ssion of the manager's outlook, the specific investment decisions it
4. A discu act future results.
may trigger, and how it may imP
D. Upon Written Request, support of
Copies of all documentation and other reasonable explanations in
1. P
any buy sell or hold decision.
ied financial statements of the investment management organization.
2. Certif
E. As a Matter of Course
es in ownership, organization structure, financial
1. Report material chsta and management.
conditions, senior staffing
investment results for the total portfolio, aei hted total rate-Of-return-
cash s well as for fixed and
2, Report cash equivalents, using time w g
equities including
uities shall have complete
3. The investment managers responsible ofo�oq es subject to the requirements of
discretion with respect to the voting Pded. Further,the gianager shall
Michigan Public Acts 314 of 1965 as am and report to the Board their proxy
advise the Board as to their proxy policies
voting record on an annual basis.
F. Cash Flow and Liguidi
System and based on sound
Due to the maturity of the Police &Fire Retirement ce &Fire Retirement System recognizes the need
assumption the police contributions. As this portfolio
actuarial assump to er and employee
for cash flow in excess of emp Y ,_ o���or rP�P.ls in
«„ l nhiective and without specific income
VI. INVESTMENT MANAGER'S GUIDELINES AND RESTRICTIONS
d by
The Board believes that investment decisions are best
delegated to the investment emanagers
e, full
excessive in Policy within discretion
withinthe guidelines herein stated.
to carry outt i
The Trustees of the Police&Fire Retirement Systemhavedetermimanager sneso hat under
ot to assume
regulatory restraints it is prudent to diversify by investment
undue risk as a result of over reliance on the success of one manager. Thus a multi
manager approach has been employed.
Asset managers will be employed to utilize individual nxpe tinedividual manager their
it assigned area
es
of responsibility. Each addenda toethelll Inbesgment Policy.overned
which will serve as
Portfolio weightings shall be reviewed at least quarterlya d erdistributed reflect weighting or under the
Investment Manager Structure when excessive risk d
ue toweighting by management style occurs.
A. Investment Strategies
st be oriented to long-term investment horizons and
Investment strategies mu
requirements for broadly diversified portfolios.
B. Asset Categories
Investment of Fund assets will be in three general categories:
1. Fixed Income/including Real Estate
2. Equities (includes convertible bonds and convertible preferred stocks).
3. Real Assets (includes Real Estate)
C. Permissible Investments
ermitted currently under this
Listed below are the investment vehicles specifically e are categorized as equity or fixed
Statement of Investmen policies classified for purposes of the asset-mix guidelines in a
the
income to indicate how y e
subsequent section.
FIXED INCOME
EQUITY ♦ Bonds(including Treasuries,Corporates,Government,
♦ Common Stocks MBS, &ABS)
♦ GIC's,BIC's U.S.
♦ Convertible Preferred Stocks ♦ Cash-Equivalent Securities(e.g.,b
♦ Convertible Bonds T-Bills,Commercial Paper,etc.)
♦ Certificates of Deposi e in tiinstitutions
with FDIC/FSLIC p
♦ Money Market FundsBank STIF Funds
♦ Preferred Stocks
private
managed
The above as
sets can be held in commingled(mutual)funds as
well
ll as prior ly oval are:
separate accounts. Those investments prohibited by the oar
♦ Short Sales
♦ Private Placement ♦ Index Options
♦ Commodities Futures ♦ Structured Securities
♦ Warrants ♦ Leveraged Instruments
he strategies identified above may be deployed within the Global Long/Short
Some of t stem. As such, the Board approves the use of
Equity Fund of Funds selected by the Sy Equity allocation.
these investments within the limited scope of the Global Long/Short
D. Equity Investments
investment strategy of the Fund is to ultimately eentbmarket vash a lue of all tment of
The overall ias the
sixty percent(60%) of the total portfolio (definedanagers should be fully invested most
investments) in equities for the System. Equity
of the time,
however, if the investment manager believes market et value of the Portfolio
may reduce his equity holdingsthBoard The portfoo less than lio% Of wi 1 be invested in marketable
without prior consent of the B stock are not permitted. The selection of securities will be
securities. Restricted or letter
at the discretion of each manager.
Equity Investments, the System has made an allocation toobeGlobal
mv est d Long/Short
Within the Eq y
Fouities. The target allocation for this in vesi men investment strategy of holding a
Equity investments shall be made within the following framework:
1. Rate-of-Return Goal—The overall goal for the equity portfolios over a full market
cycle is to achieve a rate-of-return exceeding the S&P 500 Index (for large cap
managers, hedge fund of funds), Russell Mid Cap Index (for mid cap managers),
Russell 2000 (for small cap managers) and the median relevant peer for domestic
equity portfolios, and the MSCI EAFE Index and median relevant peer for
international equity portfolios.
2. Diversification—The manager is expected to prudently diversify the portfolio
across industry/economic sectors, number of securities, and size of positions.
Equity investment in any one company may not exceed 5% of the individual
manager's portfolio based on market price, or 5% of any one company's
outstanding equity.
E. Fixed Income Investments
Money market instruments should have a minimum quality rating comparable to an A
bond rating. Commercial paper should be rated Al/P1 unless held in a diversified
short-term commingled fund.
The fixed income and cash equivalents portion of the Funds should be invested to
preserve principal and achieve a net total return after management fees in excess of
the inflation rate. The portfolio will be invested in marketable securities. The
selection of securities will be at the discretion of each manager. Fixed income
investments shall be made within the following framework: Rate-of-Return Goal—
The overall goal for fixed income portfolios is to achieve a rate-of-return exceeding
the Barclays Capital Aggregate Index and the median core bond manager over a full
market cycle.
Quality Standards - Investment in Corporate Bonds shall only be in those companies
rated investment grade by at least two of three rating agencies (S&P, Moody's and
Fitch).for the "core" portfolio. The "core plus" portfolio may include opportunistic
allocations to high yield, non-dollar, and emerging market bonds. Allocations to each
of these sectors will be at the discretion of the investment manager and will be limited
to 30% of the manager's portfolio. Unrated fixed income securities may not be
purchased.
Diversification—The fixed income portfolio shall be diversified by maturity and
industry. The average duration should not deviate from the Barclays Capital
Aggregate Index duration by+/- 20%.
F RPaI F.ctnte Tnvestments
properties. While income and appreciation are dual considerations, more emphasis will
be placed on high quality, income-producing properties in the portfolio. The manager
should not assume excessive risk in terms of developmental properties or leverage
utilized.
The portfolio may be invested in commingled or partnership vehicles. The selection of
properties/investments will be at the discretion of each manager.
Rate-of-Return Goal—The overall goal for the equity portfolios over a full market cycle
is to achieve a rate-of-return exceeding the NCREIF Index and median core real estate
manager.
Diversification—The Fund shall be well diversified by property type, number of
properties, and geographic location.
VH. PERFORMANCE MEASUREMENT STANDARDS
Performance will be reviewed in accordance with the following:
A. Relative to the Investment Policy Statement
The investment performance of any of the retained investment managers shall be
judged in relation to the primary guidelines, goals, and objectives of the Investment
Policy Statement.
B. Relative to Other Public Funds
The investment results shall be compared against a universe of other tax exempt
public funds giving due regard to the differences in investment objectives, restrictions
by the Board, and any restrictions imposed by State and local laws.
C. Market Cycles
In reviewing investment results the Board will emphasize results over full market
cycles (typically 3-5 years) rather than quarter to quarter or year to year standards.
D. Relative to General Market Indices
The equity and fixed income segments shall also be compared to broad market indices
that best reflect the portfolio composition. Performance comparisons will be made
versus appropriate benchmarks and peer groups as follows:
E. Timely Basis
The performance measurement reports
delivered
�separately n a quarterly
basis
measuring a composite of the total fund and ea h manage
VM. PERFORMANCE BENCHMARKS
Total Pension Fund Obiectives
Both relative and absolute results will be considered in the evaluation of the total
Pension Fund's performance. Over a three to five year period,the total Pension Fund
should:
♦ Outperform Inflation.
The Pension Fund's annualized total return should exceed the annualized rate of
inflation as indicated by the Consumer Price Index by at least 1%.
♦ Exceed the Actuarial Assumption rate.
The Pension Fund's annualized total return should equal or exceed the Fund's
actuarial interest rate assumption (currently 8% for the System .
♦ Meet s ecific erformance benchmarks.
The Pension Fund's total return should exceed the total return of an index
composed as follows
40% Standard &Poor's 500 Stock Index
10% Russell 2500 Index
10% EAFE International Stock Index
35% Barclays Capital Aggregate Bond Index
5% NCREIF Property Index
The Pension Fund's total return should rank at median or above as compared to a
universe of balanced portfolios with similar weightings in equities and fixed income.
Large Cap Equity:
♦ The total return of each portfolio, after fees, should exceed the total return of the
Standard &Poor's 500 Index.
♦ The total return of each portfolio should rank
of each portfolio should rank above
ve median in a universe of all
equity oriented styles, and the equity portion p
median in a universe of"equity only" managers.
Global Lonz/Short Equity (Fund of Funds):
♦ The Primary emphasis of this portfolio should be on positive absolute returns with
low correlation to the long only equity markets. The portfolio should be managed
in a style that will provide less volatility in returns than the broad long only equity
markets so as to provide protection in down markets, but allow participation in up
markets.
♦ The S&P 500 Index shall be used for comparative purposes.
♦ The total return should rank above median in a universe of the manager's
particular peer universe (HFRI).
Fixed Income:
♦ The total return of each portfolio, after fees, should exceed the total return of the
Barclays Capital Aggregate Bond Index.
♦ The total return of each portfolio should rank above median in a universe of all
fixed income styles.
♦ The total return of each portfolio should rank above median in a universe of the
manager's particular peer sample.
International Equity:
♦ The total return of each portfolio should rank in the upper half in a universe of
international equity oriented portfolios.
♦ The total return of the portion of each portfolio invested in international equity
securities should exceed the total return of the EAFE Index.
Small/Mid Cap Equity:
♦ The total return of each portfolio should rank in the upper half in universe of
equity style peers.
♦ The total return of the portfolio should exceed the total return of the Russell 2500
Index, and exceed the total return of the relevant style benchmark(Russell 2500
Growth and Russell 2500 SMid Cap Value).
Real Estate:
♦ The total return of each portfolio should rank in the upper half in universe of core
commingled real estate fund peers.
♦ The total return of each portfolio should exceed the total return of the NCREIF
Index. Although performance expectations are established for a market cycle,
performance comparisons to relevant benchmarks and peer groups will be on an
on-going basis.
IX. SECURITIES LENDING
1. Objective. The System seeks to earn an incremental level of income through a
securities lending program with lending practices consistent with the
preservation of capital. The Board has selected a securities lending agent
"Agent" to perform the securities lending function. The goal is minimize risk
to a reasonable and acceptable level with respect to both the broker/borrower
and collateral investment.
2. Broker/Borrower Risk. Initial Collateral; Marking to Market. At the
time of loan, the broker/borrower shall deliver collateral in cash or U.S.
government securities not less than 100% market value of loaned security.
Marking to market is the process whereby on each business day, the Agent
shall determine the market value of the security loaned versus the value of the
collateral provided by the broker/borrower. If that collateral amount provided
by the brokerlborrower shall fall below the value of the security loaned, the
Agent shall require additional collateral be provided by the broker/borrower. If
the collateral amount provided by the brokertborrower exceeds the value of
the security loaned, the broker/borrower may require that some portion of the
collateral be returned.
3. Cash Collateral Investment. Cash collateral shall be invested in a
commingled fund established for the purpose of securities lending collateral
investments and shall be managed by the Agent. Investments shall be made
in accordance with the published investment guidelines.
4. Indirect participation in Securities Lending. The System has some
investments in pooled products that may engage in securities lending. These
manager(s) shall make the Board aware of this practice.
Investment Policy Statement for the City of Lansing Police & Fire
Retirement System:
Amended April 1987
Amended May 1987
Amended May 1999
Amended December 2000
Amended February 2002
Amended February 2003
Amended February 2006
Amended February 2008
Amended March 2008
Amended August 2009
Amended march 2011