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HomeMy WebLinkAbout2020 Police and Fire Retirement System minutes FINAL CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM COMMITTEE OF THE WHOLE Committee of the Whole January 21, 2020 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 C. Wilcox, R. Wilcox, Wohlfert—3. Absent: Trustee Fabus, Kehler, Rose, Schor, Wood Others: Karen E. Williams, Human Resources Department; Shelbi Frayer, Finance Department; Deputy City Attorney Joseph Abood, Attorney Ken Lane (at the request of the City Attorney's Office), Attorney Aaron Castle, VanOverbeke, Michard & Timmony, P.C. Secretary's Report. 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 374. 1 death(s), Irene Bircham, 1/9/2020, age 97, spouse of Fire retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of December 2019 amounted to $2,817,699.27. Total retirement checks printed for the P&F System: 755. Total retirement checks printed for both systems: 1698. Domestic relations order received: 0 Domestic relations orders pending: 01. Eligible domestic relations orders certified: 0. There were no applicants for regular age and service retirement. There were no requests for duty disability retirement. There were no requests for non-duty disability retirement. Karen Williams informed the Police and Fire Retirement Board of a One Day Mapers Seminar that would be held March 6, 2020. There were no requests for refund of accumulated contributions. Karen Williams reported that Trustees Fabus, Kehler, Rose, and Wood requested to be excused from the January meeting. There were no public comments. Regular Meeting January 21, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Attorney Ken Lane distributed the Repayment of Contribution Policy and the Service Credit Purchase policy. Attorney Lane reported that he provided the Information Technology Department with a copy of the Northern Trust Security report for review. Karen Williams announced that the Police and Fire Board needed to prepare its budget for 2020. Karen Williams requested that members who wished to change their subcommittee membership should contact the chairperson or the retirement office. Attorney Joseph Abood indicated that the Law Department would be drafting the legal counsel agreement for the retirement boards. Attorney Aaron Castle indicated that the he forwarded a standard request for information and standard retainer to the Retirement Office. Karen Williams reported that the Arrivos pension software would need to be updated. The City Council approved many of the collective bargaining agreements and several of the agreements changed the final average compensation definition for some members. The new final average compensations would need to be integrated into the system. Karen Williams reviewed the Monthly Investment Report for the period ending December 31, 2019. The meeting adjourned at 8:50 am. Minutes approved on Shelbi Frayer, Secretary Police & Fire Retirement System Eric P. Wohlfert, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Special Meeting March 31, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Present: Trustees Kehler, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood— 7. Absent: 0 Others: Karen E. Williams, Human Resources Department; Shelbi Frayer, Finance Department; Attorney Aaron Castle (legal counsel). It was moved by Trustee Rose and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board meeting of February 18, 2020. Adopted by the following vote: unanimous It was moved by Trustee Ryan Wilcox and supported by Trustee Kehler to adopt temporary rules regarding public participation for remote meetings of the Retirement Board during times of state and/or national emergency, to allow public participation via teleconferencing and/or video conferencing. Adopted by the following vote; unanimous Secretary's Report. 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 374. 1 death(s): Irene Bircham, 1/9/2020, age 97 spouse of Fire retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of February 2020, amounted to $2,846,252.76. Total retirement checks printed for the P&F System: 754. Total retirement checks printed for both systems: 1,699. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. Special Meeting March 31, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 2 It was moved by Trustee Ryan Wilcox and supported by Trustee Wood to approve the following application for Regular Age and Service Retirement: Todd Johnson (Police—CCLP Supervisory), 25 years of service credits, age 49, effective April 15, 2020. Adopted by the following vote: unanimous. There were no requests for duty disability retirement. There were no requests for non-duty disability retirement. It was moved by Trustee Chris Wilcox and supported by Trustee Rose to approve the following request for refund of accumulated contribution: Brad Hagman, CCLP NonSupervisory, not vested, $4,738.91 Adopted by the following vote: unanimous It was moved by Trustee Wood and supported by Trustee Chris Wilcox to approve the Police and Fire Retirement System 2020 budget. Adopted by the following vote: unanimous Karen Williams reported that the nominating petitions for the election of a Police Trustee to the Board was due April 2, 2020. Ms. Williams indicated that City Hall was closed and she inquired if the trustees wanted to amend any of the dates to allow other petitions or change the dates of the election. Ms. Williams indicated the Retirement Office has received one nominating petition. Trustee Wood recommended that the nominating petitions deadline should be April 14, 2020 and that would allow the Board to determine if an election would be needed. Trustee Wood stated that the nominating petitions can reviewed at the next meeting. It was moved by Trustee Wood and supported by Trustee Ryan Wilcox to extend the nominating petition deadline for the Police Trustee election to April 14, 2020. Adopted by the following vote: unanimous Karen Williams reported that the Finance Department submitted confirmation of the FY2020 Police and Fire Retirement System pension employee contribution on February 21, 2020. The memo stated that $15,457,647 was transferred by the City to the Police and Fire Retirement System for the calendar year 2019(fiscal year 2020) which is 100% of the actuarially-determined contribution amount from the 12/31/18 Police and Fire actuarial valuation. It was moved by the Trustee Wood and supported by Trustee Chris Wilcox to accept the Police and Fire Pension contribution. Adopted by the following vote: unanimous. Trustee Wood inquired about having an update from Asset Consulting Group regarding the portfolio due to the corona virus. Trustee Wohlfert stated that he has been in touch with Asset Consutling Group. Trustee Wohlfert informed Nathan Burk that there were no major concerns at this time. Trustee Schor also would like an update from Asset Consulting Group regarding the portfolio. Trustee Rose inquired when the pension contributions would be invested in the portfolio. Ms. Williams explained that in the past, the Retirement Board has used the contributions for pension payments instead of pulling money out of the portfolio at a loss. Attorney Castle indicated that it is important that an update come from Asset Consulting Group due to the volatility of the stock markets. Attorney Castle also stressed the importance of the Board to continue to meet during the corona virus. Attorney Castle also stated that he will update the Board at the next meeting regarding the federal law CARES, that may have an effect on retirement and health plans. Trustee Wohlfert will contact Asset Consulting Group to attend the meeting next month regarding the retirement board's portfolio. It was moved by Trustee Rose and supported by Trustee Chris Wilcox to adjourn the meeting. Adopted by the following vote; unanimous The meeting adjourned at 9:08 am. Minutes approved on Shelbi Frayer, Secretary Police & Fire Retirement System Eric P. Wohlfert, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Special Meeting April 21, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Present: Trustees Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood— 6. Absent: 0 Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle (legal counsel); Nathan Burk, George Tarlas, Asset Consulting Group. It was moved by Trustee Rose and supported by Trustee Wood to approve the Official Minutes of the Police and Fire Retirement System Board meeting of March 31, 2020. Adopted by the following vote: unanimous It was moved by Trustee Wood and supported by Trustee Chris Wilcox to consider late items (late items will be considered as part of the regular portion of the meeting to which they relate). Adopted by the following vote: unanimous Secretary's Report. 0 new sworn fire member(s), 2 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 375. 4 death(s): Lavern Counseller, Fire, died 4/10/2020, age 77; spouse to receive 50%; Doyal Little, Police, died 3/30/2020, age 68, spouse to receive 50%; Robert D. McClean, Police, died 2/5/2020, age 75, beneficiary to receive 50; Ronald L. Seyka, Police, died 3/5/2020, age 54, spouse to receive 50%. Refunds made since the last regular meeting amounted to $4,738.91. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of March 2020, amounted to $2,833,399.79. Total retirement checks printed for the P&F System: 750. Total retirement checks printed for both systems: 1,692. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. Special Meeting April 21, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 2 It was moved by Trustee Chris Wilcox and supported by Trustee Wilcox to approve the following application for Regular Age and Service Retirement: Quincy L. Scroggins (Police—CCLP NonSupervisory), 25 years of service credits, age 47, effective April 15, 2020 (with the purchase of 2 months of universal service credits) Sworn Date 7/11/1995. Adopted by the following vote: unanimous. There were no requests for duty disability retirement. There were no requests for non-duty disability retirement. There were no requests for refunds of accumulated contributions. Mr. Ryan Wilcox provided an Oral Report of his attendance at the One Day MAPERS seminar. The Seminar includes topics regarding investment trustees fiduciary duty and governance, risk management, fixed income, legislative update, drafting administrative policies and procedures, real estate stability, actuarial matters and hedge funds. Attorney Aaron Castle provided a legal counsel report regarding CARES Act. Attorney Castle explained that the Coronavirus Aid Relief and Economic Security Act (CARES) went into effect March 27, 2020 to provide financial aid to individuals and businesses impacted by the ongoing Coronavirus pandemic in the United States. Attorney Castle discussed some of the provision that could affect the retirement plans regarding withdrawal, loan distributions. He indicated that the Retirement Ordinance would need to be amended to allow the provisions. Trustee Wood inquired if there was a deadline to accept these provision of the CARES Act. Attorney Castle indicated that the deadline for withdrawals without penalty would be end of the plan year. The amendment to the Retirement Ordinance would need to be made to be plan documents prior to the end of 2020. Karen Williams provided an update of the Police Trustee Election. The Retirement Office received one nominating petition from Mr. Tanner Lewandowsky. Under the election rules, the Board can accept and certify Mr. Lewandowsky as the Police Trustee to replace and complete the term from Thomas Fabus. Special Meeting April 21, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 2 It was moved by Trustee Wood and supported by Trustee Ryan Wilcox to extend to accept and certify the nomination petition of Mr. Tanner Lewandowsky and declare him the Police trustee. Adopted by the following vote: unanimous Karen Williams reported that she had been contacted by duty disability retirees that had inquired if the Police and Fire Retirement System would extend the deadline to submit income verifications due to the Coronavirus pandemic. Duty Disability retirees also inquired if the verifications needed to be notarized. Attorney Castle noted that the Board would need to take action to waive its rules, but cautioned regarding changing the practice of having the forms notarized. Trustee Wood indicated that the federal governments had extended its deadline for tax filing and recommended that the Police and Fire Retirement System concur for those retirees who had not completed their taxes. It was moved by Trustee Wood and supported by Trustee Ryan Wilcox to extend the submission date for income verification to July 30, 2020. Adopted by the following vote: unanimous Mr. George Tarlas and Mr. Nathan Burk provided an update of the Police and Fire Retirement System Board financial portfolio. Mr. Burk indicated at the start of the year, equity markets were at an all- time high, and labor markets and gas prices ere stable. There are been two shocks to the portfolio due to the Coronavirus and oil prices dropping. With the social distancing and the economy closed, unemployment is at an all-time high and there is a low demand for oil. Mr. Burk reviewed the performance of the portfolio and maintained the Board was strategically allocated and diversified in its assets for the long term, but he recommended changes to the Board fixed asset allocation. It was moved by Trustee Rose and supported by Trustee Wood to adjourn the meeting. Adopted by the following vote; unanimous The meeting adjourned at 9:25 am. Minutes approved on Shelbi Frayer, Secretary Police & Fire Retirement System Eric P. Wohlfert, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Special Meeting June 16, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Present: Trustees Kehler, Lewandowsky, Rose, C. Wilcox, R. Wilcox, Wohlfert—6. Absent: Schor, Wood (excused)- 2 Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle (legal counsel). It was moved by Trustee R. Wilcox and supported by Trustee C. Wilcox to approve the Official Minutes of the Police and Fire Retirement System Board meeting of March 31, 2020. Adopted by the following roll call vote: yes: Lewandowsky, Rose, C. Wilcox, R, Wilcox, Wohlfert. 5 . No: 0. Secretary's Report. 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 374. 2 death(s): Janet I. Holliday, died 3/11/2020, age 85; spouse of Fire retiree; Raymond D. Warner, Police, died 2/20/2020, age 89, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of May 2020, amounted to $2,853,159.51. Total retirement checks printed for the P&F System: 752. Total retirement checks printed for both systems: 1,695. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. It was moved by Trustee Chris Wilcox and supported by Trustee Bob Rose to approve the following application for Regular Age and Service Retirement: David P. Lowndes (Police— CCLP NonSupervisory), 25 years of service credits, age 55, effective June 27, 2020 (with the purchase of 1 month of universal service credits) Sworn Date 7/31/1995. Adopted by the following roll call vote: Yes: Kehler, Lewandowsky, Rose, C. Wilcox, R. Wilcox, Wohlfert. No. —0. June 16, 2020 Special Meeting Tuesday, 8:30 a.m. Via Zoom Meeting Page 2 There were no requests for duty disability retirement. There were no requests for non-duty disability retirement. There were no requests for refunds of accumulated contributions. l Conference Karen Williams reported that MAPERShha e nested that membes scheduled its lrs who wished September 12 -15 on Mackinac Island. S q to attend contract the Retirement Office regarding registration. It was moved by Trustee Rose and supported by Trustee C. Wilcox to excuse Trustee Wood and Trustee Schor from the June Police and Fire Retirement System Board. Adopted by the following vote: unanimous Attorney Aaron Castle provided a legal counsel report regarding other income offsets in response to questions asked by trust ees d ret Hance ttoernnu Castle the discussed Section 294.02(p)(3) of the Retirement Retirement System to reduce a disability retirement allowance if a disability retiree becomes engaged in other gainful employment. Attorney Castle opined that additional income received throegh ra an inheritance in or federal stimulus packages does not constitute payto or occupation, business or employment, and the Retirement Board is not rrepaidqui ed he by t reduce such amounts from disability retirement recommended alowances policy to c aeify o her income. Retirement System. Attorney Castle It was moved by Trustee Rose and supported by Trustee Chris Wilcox to amend its income offsets policy to define income and clarify income. Adopted by the following roll call vote: Kehler, Lewndowsky, Rose, C. Wilcox, . R. Wilcox, Wohlfert. — 6. No. - 0 Attorney Castle provided a memo rega Castle addressed the crediting of service rdi ug intervening ere he nRetirement System in light of ired applicable state and federal laws and regulations. Attorney Castle opined that the retirement system is for vesting pu�posesgonly d qualified intervening military service as credited service June 16, 2020 Special Meeting Tuesday, 8:30 a.m. Via Zoom Meeting page 3 members are only entitled to accrue benefits for a period of Retirement System an missed employee contributions to intervening military service if they make-up y required, if not for the intervening the Retirement System that would have been military service. adoption of a formal written policy addressing Attorney Castle recommended the service for retirement purposes. the crediting of intervening military supported by Trustee Kehler to establish a It was moved by Trustee Rose and supp ening military service for retirement policy addressing the crediting of intery purposes. Rose, C. Wilcox, R. Adopted by the following roll call vote; Kehler, Lewandowsky, Wilcox, Wolhfert— 6. No - 0. Attorney Castle announced a virtual training session for new trustees schedule for June 24, 2020. Karen Williams reviewed the monthly investment report for the month ending May 31, 2020. b Trustee C. Wilcox and supported by Trustee Rose to adjourn the It was moved y meeting. Rose, C. by the following roll call vote; Yes; Kehler, Lewandowsky, Adopted Wilcox, R. Wilcox, Wohlfert .- 6• No: 0. The meeting adjourned at 9:03 am. Minutes approved on Shelbi Frayer, Secretary stem police & Fire Retirement Sy Eric p. Wohlfert, Chairperson police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Special Meeting July 21, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Present: Trustees Fox, Lewandowsky, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert (8:38), Wood— 8. Absent: 0 Trustee Ryan Wilcox presided. Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle (legal counsel). It was moved by Trustee Rose and supported by Trustee C. Wilcox to approve the Official Minutes of the Police and Fire Retirement System Board meeting of June 16, 2020. Adopted by the following roll call vote: yes: Lewandowsky, Rose, Schor, C. Wilcox, R, Wilcox, Wood. 6 . No: 0. Secretary's Report. 10 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 7 retired. Total: Active membership: 370. 1 death(s): Clara Zuk, died 6/21/2020, age 92; spouse of Police retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of June 2020, amounted to $2,855,633.92. Total retirement checks printed for the P&F System: 752. Total retirement checks printed for both systems: 1,696. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. There were no regular age and service retirements. There were no requests for duty disability retirement. There were no requests for non-duty disability retirement. There were no requests for refunds of accumulated contributions. Special Meeting July 21, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 2 Karen Williams reported that MAPERS has scheduled its Fall Conference, September 12 -15 on Mackinac Island. She requested that members who wished to attend contract the Retirement Office regarding registration. Attorney Aaron Castle provided a legal counsel report regarding other income offsets in response to questions asked by trustees and retires. Attorney Castle reviewed his opinion that additional income received through an inheritance or federal stimulus packages does not constitute pay or remuneration from a gainful occupation, business or employment, and the Retirement Board is not required to reduce such amounts from disability retirement allowances being paid by the Retirement System. Attorney Castle provided a copy of the policy that clarifies other income. The policy included, the purpose and definitions. The police outlined the income verification process, workers' compensation offset and other income offset. It was moved by Trustee Rose and supported by Trustee Wood to adopt the City of Lansing Police and Fire Retirement System Disability Offset policy. Adopted by the following roll call vote: Kehler, Lewendowsky, Rose, C. Wilcox, . R. Wilcox, Wohlfert. — 6. No. - 0 Trustee Ryan Wilcox inquired about the reciprocal retirement act on behalf of members. Trustee Ryan Wilcox explained that members asked if they could use the reciprocal retirement act if they removed their monies from preceding system. The members have 30 months with the City of Lansing. Trustee Wilcox requested direction from legal counsel. Attorney Castle explained the provisions of the reciprocal retirement act. Attorney Castle opined that the as long as the members are active within the City of Lansing Police and Fire Retirement System, those members can utilize the reciprocal retirement act to meet age and service requirements. He further opined that those members could have removed their monies from the preceding system, but still use the service for eligibility. The members would not be able to use the previous reciprocal unit service for benefit calculation. Attorney Castle reported that new trustee orientation and training was held June 24, 2020. Attorney Castle inquired if the Police and Fire Retirement System wanted to have July 22, 2020 orientation, because most of the new trustees attended the June training. He stated that he would arrange one-to-one orientation with new trustees. Special Meeting July 21, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 3 Karen Williams reviewed the monthly investment report for the month ending June 30, 2020. Karen Williams read into the minutes the following letter from the Office of Mayor regarding staffing changes. July 14, 2020 City of Lansing Police and Fire Retirement Board c/o Ms. Karen Williams 124 W. Michigan Ave. 8th Floor Lansing, MI 48909 Dear Board Members: Please note some of the changes in our staffing and the corresponding effect on your board membership. I have named Judy Kehler as the new Chief Strategy Officer to fill the spot left by Shelbi Frayer's resignation. Cheryl Fox will serve as the interim Treasurer and will fill the Treasurer role on the ERS board as required by ordinance. Jake Brower is the interim finance director and will fill the role of non-voting secretary for the July meeting. In August, Rob Widigan will come on board as the Finance Director and take the non- voting Secretary spot. Please let me know if you need further information regarding these positions, or if there are any concerns. Sincerely, Andy Schor Mayor It was moved by Trustee Rose and supported by Trustee Wohlfert to adjourn the meeting. Adopted by the following vote: unanimous The meeting adjourned at 9:02 am. Minutes approved on Jake Brower, Secretary Police & Fire Retirement System Ryan Wilcox, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting September 8, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Present: Trustees Lewandowsky, Rose, C. Wilcox, R. Wilcox, Wohlfert— 5. Absent: Fox, Schor, Wood (excused) -3 Others: Karen E. Williams, Human Resources Department; Attorney Aaron Castle (legal counsel). It was moved by Trustee Wilcox and supported by Trustee Rose to approve the Official Joint Minutes of the Employees' Retirement System Board and the Police and Fire Retirement System Board meeting of August 18, 2020. Adopted by the following roll call vote: Yes: Lewandowsky, Rose, C. Wilcox, R, Wilcox, Wohlfert -5. No: 0. Secretary's Report. 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 1 refund(s), 0 transfers, 0 retired. Total: Active membership: 376. 2 death(s): Joyce J. Getts, died 7/31/2020, age 90, spouse of Police Retiree, no beneficiary; Robert R. Reisner, Police, retired 1/13/1984, died 8/20/2020, age 86, no surviving beneficiary. Refunds made since the last regular meeting amounted to $4,600.88. Reimbursements to the System year-to-date amount to $19,644.35. Retirement allowances paid for the month of August 2020, amounted to $2,889,950.55. Total retirement checks printed for the P&F System: 758. Total retirement checks printed for both systems: 1,705. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. There were no regular age and service retirements. Karen Williams reported that Applicant #2020 — P0818 had returned his documents and his medical release form. The Retirement office requested documents from workers' compensation to be forwarded to the medical director. There were no requests for non-duty disability retirement. There were no requests for refunds of accumulated contributions. Regular Meeting September 8, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 2 Trustee Wohlfert reported that Trustee Wood requested to be excused from the September meeting due to illness. Karen Williams noted that the Mayor's cabinet meeting was being held at the same time as the Police and Fire Retirement System. It was moved by the Trustee Chris Wilcox and supported Trustee Rose to excuse Trustee Wood from the September meeting. Adopted by the following roll call votes: Yes: Lewandowsky, Rose, C. Wilcox, R.Wilcox, Wohlfert. — 5. No. - 0 Attorney Aaron Castle provided a legal counsel report regarding intervening military service and the repayment for compensation. He reviewed the draft of a form that could be used when members wanted to repay contributions after a deployment for missed service credits. The form could allow members to pay by lump sum or payroll deduction. The form also requested a copy of the DD214 form regarding the termination of military service. Attorney Castle stated that once the request had been made and approved by the Board. Karen Williams indicated that she did not believe the City had a payment plan option where members could use payroll deductions to repay contributions or purchase time. The Police and Fire Board requested that Ms. Williams contact Human Resources and Finance Department to see if payroll deductions were possible to repay contributions. Trustee Lewandowsky believed that the DD214 documents were used for discharges, once a military contract was terminated. Members would not have a DD214, if still active in the military or as a reservist. Attorney Castle opined that the Board could receive an official document that substantiate the service. He stated that he could update the form. Trustee Wohlfert tabled the discussion on the form until the Board received an answer regarding if members can use payroll deduction to repay contributions. Karen Williams reviewed the Trustee Election policies and procedures. She noted that Trustee Lewandowsky was elected to complete the unexpired term of Thomas Fabus, who retired. The expiration of that term is December 31, 2020. Regular Meeting September 8, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 3 Karen Williams reported that the Board would need to have an election for the new term that begins January 1, 2021 through December 31, 2025. She reported that she would have election posting available for review and approval at the next meeting. Attorney Castle also reviewed a memo distributed by Vanoverbeke, Michaud & Timmony, P.C. that discussed trustee election policies and procedure issues and challenges during the Coronavirus pandemic. He noted that the Police and Fire Retirement Board already had a policy in place that addressed electronic voting and other concerns. Trustee Rose requested legislative update. Attorney Castle stated that at this time there was no legislative activity regarding retirement issues, but he would keep the Board informed of pending bills, and proposed actions in the Michigan Legislature Karen Williams reported that there had been no requests yet from the laid-off officers regarding their breaks in service and its effects on their retirement dates. She also reported that there was a request regarding the repayment of contributions of intervening military service. Ms. Williams informed the member that the Board was setting up a procedure for how those contributions are re-paid and accounted for in the retirement system. Ms. Williams inquired if the breaks in Service request update should be kept on the agenda. Trustee Wohlfert requested that the Retirement Office report as necessary. Trustee Ryan Wilcox inquired about the reciprocal retirement act on behalf of members. Ms. Williams reviewed the procedure for how reciprocal retirement act requests are processed. Ms. Williams explained that one of the recent requests was reviewed by the legal counsel. Ms. Williams stated that members then received a letter from the Retirement Office verifying and accepting the service to be implemented at retirement. A copy of the letter was placed in the member's retirement file. Attorney Castle added that the Reciprocal Retirement Act is state law and the Board did not need a further policy. He explained the Board just needed a document that substantiated the service from the other governmental unit. Karen Williams reviewed the monthly investment report for the month ending August 30, 2020. Regular Meeting September 8, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 4 It was moved by Trustee Rose and supported by Trustee Wilcox to adjourn the meeting. Adopted by the following vote: Yes: Lewandowsky, Rose, C. Wilcox, R. Wilcox, Wohlfert. — 5. The meeting adjourned at 8:58 am. Minutes approved on Robert Widigan, Secretary Police & Fire Retirement System Eric Wohlfert, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Special Meeting October 20, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Attorney Aaron Castle reviewed criteria for the recently passed Michigan legislation to amend the Open Meetings Act to allow remote meetings under certain conditions. He detailed that members should state that they are attending the meeting remotely and their location. Present (via remotely): Trustees Kirkland (8:31, Lansing), Lewandowsky (Lansing), Rose (Lansing), Schor (8:36, Lansing), C. Wilcox (Haslett), Wohlfert (Westphalia), Wood (Lansing)— 7. Absent: R. Wilcox (excused) -1 Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Greg Stump, Boomershine Consulting Group; Nathan Burk, Asset Consulting Group, Attorney Aaron Castle (legal counsel). It was moved by Trustee Rose and supported by Trustee C. Wilcox to approve the Official minutes of the Police and Fire Retirement System Board meeting of September 8, 2020. Adopted by the following roll call vote: Yes: Lewandowsky, Rose, C. Wilcox, Wohlfert, Wood -5. No: 0. Secretary's Report. 0 new sworn fire member(s), 1 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 375. 3 death(s): Roger E. Adams, Police, retired 2/1/1960, died 8/22/2020, age 86, no surviving beneficiary; Michael W. Dixon, Fire, retired 3/1/1991, died 8/27/2020, age 79, no surviving beneficiary; Vita Fraser, died 9/8/2020, age 96, Spouse of Police Retiree. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $19,644.35. Retirement allowances paid for the month of September 2020, amounted to $2,880,977.90. Total retirement checks printed for the P&F System: 755. Total retirement checks printed for both systems: 1,701. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. Regular Meeting October 20, 2020 Via Zoom Tuesday, 8:30 a.m. Page 2 It was moved by Trustee C. Wilcox and supported by Trustee Wood to approve the following application for regular age and service retirement: Christopher Lake, (Fire — IAFF), 25 years of service credit, age 49,effective October 1, 2020 (with the purchase of 24 months of military service credits, and 18 months of universal service credits. Adopted by the following roll call vote: Yes: Kirkland, Lewandowsky, Rose, C. Wilcox, Wohlfert, Wood. -6. No. — 0. Karen Williams reported that Applicant #2020 — P0818 had returned his documents and his medical release form. The Retirement office forwarded his documents and medical records from workers' compensation to the medical director. A medical evaluation appointment for the applicant has been set up. There were no requests for non-duty disability retirement. It was moved by Trustee Wood and supported by Trustee Rose to approve the following request for refund of accumulated contributions: Michael Mackey, Fire, not vested, $11,878.28 Adopted by the following roll call vote: Yes: Kirkland, Lewandowsky, Rose, Schor, C. Wilcox, Wohlfert, Wood. —7, No — 0. Karen Williams reported that Trustee Ryan Wilcox requested to be excused from the October Police and Fire Retirement System Board meeting due to a work obligation. It was moved by the Trustee Wood and supported Trustee C. Wilcox to excuse Trustee R. Wilcox from the October meeting. Adopted by the following roll call votes: Yes: Kirkland, Lewandowsky, Rose, C. Wilcox, Schor, Wohlfert. — 7. No. - 0 There were no public comments. Attorney Aaron Castle provided a legal counsel report and reviewed the provisions of Senate Bill 1108 that would amend the Open Meeting Act (OMA) to permit meetings of a public body to be held electronically or to otherwise allow remote participation by members of the public body under certain specified circumstances, and to provide procedures and requirements for holding an electronic public Regular Meeting October 20, 2020 Via Zoom Tuesday, 8:30 a.m. Page 3 meeting in accordance with the OMA. Attorney Castle detailed that procedures includes at the start of any meeting, members would need to state if they are attending remotely and at what location. The legislation provided deadlines that included remote meeting for any reason through the end of the year. After the end of year, members could only attend remotely under specific circumstances. The meeting posting and agenda must be posted. Attorney Castle also distributed a resolution for Board review and discussion that would identify those individuals who are authorized to sign on the Board's behalf. The resolution would include transfer of funds or trading instruction, disbursement of funds, direction to investment managers, investment consultant or custodial bank and the execution of legal documents. Attorney Castle recommended that the authorized signer should be Board Chairperson, Vice Chairperson or City Treasurer. Trustee Wood requested that language be added that investment managers or vendors would need to notify the chairperson if another person signed documentation on behalf of the board. Trustee Wood expressed concern that on a prior occasion, a fraudulent act had occurred where the authorized signature on an investment had been changed without Board approval by the previous finance director. Trustee Schor indicated that he believe that it was not fraudulent but was an error that was quickly corrected. Trustee Wood indicated that on that prior occasion, paperwork was submitted that a Board resolution had been passed to change the authorized signature, when no resolution had been made. It was moved by Trustee Wood and supported by Trustee C. Wilcox to add an amendment to the resolution that would add language that an investment manager or vendor would need to notify the chairperson if another person signed documentation on behalf of the board. Adopted by the following roll call votes: Yes: Kirkland, Lewandowsky, Rose, C. Wilcox, Wohlfert, Wood. — 6. Attorney Castle stated that he would update the resolution and provide at the next meeting. Karen Williams reviewed the Trustee Election policies and procedures. She noted that Trustee Lewandowsky was elected to complete the unexpired term of Thomas Fabus, who retired. The expiration of that term is December 31, 2020. Regular Meeting October 20, 2020 Via Zoom Tuesday, 8:30 a.m. Page 4 Karen Williams reported that the Board would need to have an election for the new term that begins January 1, 2021 through December 31, 2025. Ms. Williams reviewing the posting deadlines: petitions would be available, October 23; nomination petitions submission deadline, November 25; primary election, if needed, December 10; and general election, if needed December 17. Karen Williams reported that she had received several from the laid-off officers regarding their breaks in service and its effects on their retirement dates. Ms. Williams created a service credit verification sheet with disclaimer language provided by legal counsel. Ms. Williams will begin calculations and begin distributions. Trustee Wood requested that an email be provided to all members so they could have the breaks in service verified. It was moved by Trustee Wood and supported by Trustee Wilcox for the retirement office to send out notification to the membership who may have breaks in service. Adopted by the following roll call vote: Yes: Kirkland, Lewandowsky, Rose, C. Wilcox, Wohlfert, Wood. — 6. No. 0. Karen Williams reported that Board generally review the SOC1 Northern Trust Security report (formerly SAS 70). This year, the report had confidentiality language to agree to before it could be downloaded. She sent the information to legal counsel for review. Attorney Castle reviewed that confidentiality notice and stated that he would reach out to the Northern Trust with the Board's permission to determine why there was a change in access. It was moved by Trustee Wood and supported by Trustee C. Wilcox to allow legal counsel to contract Northern Trust regarding access to the SOC1 report. Adopted by the following roll call vote: Yes: Kirkland, Lewandowsky, Rose, C. Wilcox, Wohlfert, Wood. — 6 No. 0. Mr. Robert Widigan provided an update on the actuarial valuation. Mr. Widigan indicated that in August, it was brought to his attention that Mr. Stump was waiting on deliverable from the City for the actuarial. Mr. Widigan and finance staff arranged a meeting with Mr. Stump to discuss what was needed from Finance to complete the actuarial. Since that time, Mr. Stump had received all the requested information except that financial statements, which will be sent soon. Mr. Widigan and the Finance staff will work toward providing the requested and necessary data in compliance with Board policy. Mr. Greg Stump stated that he would give an actuarial valuation report at the November meeting and the full report in December. Mr. Nathan Burk, Asset Consulting Group provided a presentation regarding the Police and Fire Retirement System Fund Structure and Industry Discussion. Mr. Burk reviewed the system's asset allocation, provided a performance and fee review. Mr. Burk provided an overview of the public fund industry data. Mr. Burk reviewed the monthly investment report for the month ending September 30, 2020. The meeting adjourned at 9:38 am. Minutes approved on 11/10/2020 Robert Widigan, Secretary Police & Fire Retirement System Eric Wohlfert, Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting December 15, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. The Board was called to order at 8:30 a.m. Present (via remotely): Trustees Kirkland (Lansing), Rose (Lansing), Schor (8:36 - Lansing), C. Wilcox (Lansing), R. Wilcox, (Lansing) Wohlfert (Westphalia), Wood (Lansing)— 7. Absent: Lewandowsky, -1 Others: Karen E. Williams, Human Resources Department; Robert Widigan, Finance Department; Greg Stump, Boomershine Consulting Group; Nathan Burk, Asset Consulting Group, Attorney Aaron Castle (legal counsel). It was moved by Trustee Rose and supported by Trustee C. Wilcox to approve the Official minutes of the Police and Fire Retirement System Board meeting of November 10, 2020. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood -7. No: 0. Secretary's Report. 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 374. 1 death(s) James Florian, Fire, died 9/14/2020 age 78, spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to$16,066.10. Retirement allowances paid for the month of November 2020, amounted to $2,885,003.58. Total retirement checks printed for the P&F System: 754. Total retirement checks printed for both systems: 1,697. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. There were no applications for regular age and service retirements. Karen Williams reported that the duty disability medical report for Applicant #2020 — P0818 had been received and forwarded to the disability subcommittee. Regular Meeting December 15, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 2 It was moved by Trustee C. Wilcox and supported by Trustee Kirkland to approve the duty disability for applicant #2020 — P0818. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood -7. No: 0. There were no requests for non-duty disability retirement. There were no requests for refund of accumulated contributions. There were no public comments. Karen Williams provided retirement board December invoices for approval in accordance with the new authorized signers policy. Trustee Wood requested that certain information regarding the accounts be redacted. Trustee Wood also inquired if there would be late fees associated with the accounts that need to be approve first before payment. Ms. Williams was not aware of late fees, as the Board had not been charge these fees in the past. It was moved by Wood and supported by Trustee C. Wilcox to approve the December invoices. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood -7. No: 0. Attorney Aaron Castle provided a legal counsel report and reviewed the income Research & Management selection as the system's Core Fixed Income. The investment was pending contract review and negotiation Trustee Wood inquire if security protocols were included in the contract. Attorney Castles reported that he had not received the contract yet, but will address Trustee Wood's concern in the negotiation. Regular Meeting December 15, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page 3 Attorney Castle reported that he had a conference call with Finance Director Widigan, Human Resources Director Sanchez-Gazella, Chief Administrative officer Tata, and City Attorneys Smiertka and Abood to discuss implementation of the Board's administrative policy regarding Intervening military Service Credit. He reported that the City has the capability to process intervening military service credit purchases via payroll deduction. Attorney Castle reported that he reviewed the Northern Trust SOC 1 Report with respect to its internal controls and objectives of its custody and fund services system. Attorney opined that he did not have any concerns with the procedures. Attorney Castle updated the Board the Senate Bill no 1246 was recently passed by the Senate and would further amend the Michigan Open Meeting Act to allow public bodies to meet remotely under any circumstances through March 30, 2021. Trustee Lewandowsky's last day of City service was December 11, 2020. Ms. Williams informed that Board that a resolution was needed declaring the position was vacated. It was moved by Trustee R. Wilcox and supported by Trustee Wood to approve the resolution that declares Trustee Lewandowky's position vacated and allows for an election to replace the trustee position. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood -7. No: 0. Karen Williams reviewed the Trustee Election policies and procedures. Ms. Williams indicated the retirement office received two nominating petitions and there would be a general election held electronically, December 17, 2020. Karen Williams reported that she had received several from the laid-off officers regarding their breaks in service and its effects on their retirement dates. Ms. Williams will be completed with Police Department requests and will move to the Fire Department requests next. Greg Stump reviewed the actuarial valuation report for the period ending in December 31, 2019. Mr. Stump reviewed demographic information, funding level and the contribution calculation for the year. He discussed the market and actuarial rate of return. Greg Stump requested to attend the February Joint meeting to discuss the experience study proposed recommendations. It was moved by Trustee Wood and supported by Trustee R. Wilcox to accept the Police and Fire Retirement System actuarial valuation for the period ending December 31, 2019. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood -7. No: 0. Trustee Wohlfert recommended that members review and research the proposed recommendation prior to the February meeting. Karen Williams distributed the 2021 meeting schedule for the Police and Fire Retirement System Board. Trustee C. Wilcox requested that the November meeting's date be changed to November 9, 2021. It was moved by Trustee Wood and supported by Trustee Kirkland to accept the 2021 meeting schedule as amended. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood -7. No: 0. Karen Williams reviewed the monthly investment report for the month ending November 30, 2020. The meeting adjourned at 9:21 am. Minutes approved on Robert Widigan, Secretary Police & Fire Retirement System Eric P. Wohlfert, Chairperson Police & Fire Retirement System 1 CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM and POLICE AND FIRE RETIREMENT SYSTEM MEETING MINUTES Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 8:30 a.m. A quorum of both Retirement Boards were present. Trustees present: (ERS), Bahr, Cahill, Dedic (8:55), Kehler, Kraus (8:40), M. Parker, Spadafore — 7. (Police & Fire), Fabus, Kehler, Rose, C. Wilcox, R. Wilcox, Wohlfert, Wood —7. Others present: Karen Williams, Human Resources Department; Attorney James Smiertka, (City Attorney's Office); Michael VanOverbeke, Aaron L. Castle, Francis E. Judd, VanOverbeke, Michaud & Timmony, P.C.; Cynthia J. Billings-Dunn, Matthew I. Henzi, AsherKelly, Attorney at Law; Attorney Kenneth Kane, AML Group, PLC. Karen Williams distributed notification from City Council of the appointment of Carol Wood to the Police and Fire Retirement Board for the year 2020. It was moved by Trustee Kehler and supported by Trustee Ryan Wilcox to confirm Carol Wood as the 2020 City Council appointment to the Police and Fire Retirement System. Adopted by the following vote: 5 -0 Karen Williams distributed notification from City Council of the appointment of Peter Spadafore to the Employees' Retirement System Board for the year 2020. It was moved by Trustee Bahr and supported Trustee Kehler to confirm Peter Spadafore as the 2020 City Council appointment to the Employees' Retirement System Board. Adopted by the following vote: 7— 0. Karen Williams provided notification to the Employees' Retirement System Board that only one nominating petition was received for the unexpired term vacated by Mark Parker. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Two Ms. Irene Cahill submitted a valid nomination petition that was running unopposed. The Employees Retirement Board must approve the election results and confirm Ms. Cahill as Trustee to the Board. It was moved by Trustee Kehler and supported by Trustee Bahr to approve the election results and confirm Ms. Cahill as a trustee to the Employees' Retirement System Board. Adopted by the following to vote: 5 — 0. The Retirement Boards agreed to move the items of Excusing of Board Members to the end of the meeting before adjournment. Trustee Carol Wood inquired if all members would be allowed to vote on the interviews if they were not present at the meeting for all of the presentations. Trustee Wohlfert indicated that members who wished to vote on the interviews should be at the meeting. Trustee Wood also inquired if there were standard questions for all presenters for consistency. Trustee Rose indicated that historically, there were not pre-set questions. The vendors gave presentations and the Board would be allowed to ask questions that were triggered by the presentations. Trustee Kehler inquired if the Board could establish a few standard questions to ask. Trustee Rose inquired to City Attorney Smiertka regarding what questions should be asked. City Attorney Smiertka stated that it was his understanding that the Boards would provide a recommendation to the City Attorney upon selection of a firm to staff the Boards, and that the cost would be paid by the City Attorney Office. He further suggested that the Board should inquire about prior public pension experience, tax and business background, and that the selected firm will work with the City Attorney's office. Trustee Rose also inquired to Trustee Wood how Council handles the interviews for RFPQs and applicants. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Three Trustee Wood indicated that the Council generally had a list of questions, but any follow- up questions would be also asked of all applicants. Trustee Spadafore indicated that hiring a vendor is different than hiring an employee. He felt that all presenters did not need to be asked the same questions because the RFPQ responses should have been exhaustive. Trustee Rose wanted it clarified if the selection of a law firm would be "as needed" for services or to review qualifications. Trustee Rose inquired to City Attorney Smiertka regarding how law firms are handled "as needed." City Attorney Smiertka stated that there is a City Council approved list that could be used for special counsel that have an expertise or specialty. Trustee Wood stated it was her understanding that this meeting was to make a recommendation to the City Attorney about hiring a legal counsel to represent the Boards not to add counsel to the City Council approved list. Trustee Kraus stressed the importance of asking similar questions to all three presenters for consistency. Attorney Michael VanOverbeke, Attorney Aaron L. Castle and Attorney Francis E. Judd provided their presentation of the legal services offered by Vanoverbeke, Michaud & Timmony, P.C. in response to the Board's request for proposals. Attorney VanOvebeke provided an overview of the organization and experiences. Attorney Vanoverbeke, Attorney Castle and Attorney Judd discussed their client list, the types of legal services offered and fees. The attorneys discussed their approach to trustee education and how securities fraud monitoring and litigations are handled. Attorney Michael VanOverbeke stressed that the Retirement Boards would be their client. The firm's expectation would be that their fees would be paid only by the retirement systems, not the City. The attorneys would work with the City Attorney's Office. Attorney Matthew I. Henzi and Attorney Cynthia J. Billings-Dunn provided their presentation of the legal services offered by AsherKelly in response to the Board's request for proposals. Attorney Henzi first explained that the AsherKelly split from Sullivan Ward, Asher & Patton, P.C. Attorney Henzi indicated that all the attorneys in the AsherKelley firm represents retirement systems. The proposal provided to the Boards would not be affected by the split. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Four Attorney Henzi and Attorney Billing-Dunn provided an overview of their organization and experiences. Attorneys Henzi and Billings-Dunn provided an overview of their clients, the type legal services offered and fees. The attorneys discussed their approach to trustee education and how securities fraud monitoring and litigation are handled. Attorney Billings-Dunn indicated that the Retirement Boards would be their client. Fees would generally be paid by the retirement system, but under the rules of Michigan Code of Professional Conduct, there would be an agreement that makes clear that the client is not the one paying the fee. Attorney Smiertka indicated in-between presentations that the current fees for legal counsel are approximately $48,000. Attorney Kenneth Lane provided their presentation of the legal services offered by AML Group, PLC in response to the Board's request for proposals. Attorney Lane provided an overview of the organization and experience. Attorney Lane discussed his client list, the types of legal services offered and fees. The attorney discussed their approach to trustee education. Although paid by the City Attorney's Office, Attorney Lane stressed that the Retirement Boards would be his client. Attorney Lane expressed that he did not have a concern with being paid directly by the Boards. There were no public comments. Trustee Spadafore inquired about why the retirement boards were interviewing legal counsel. Trustee Dennis Parker responded that many trustees felt that the need for due diligence to review the legal advisor, after Attorney Lane left Clark Hill. The legal advisor provides counsel and advice to the Board that could lead to the Board or members' being sued. Members felt the need to vet the legal advisor and go through the due diligence process. Trustee Eric Wohlfert also responded that at many of the educational conferences, it has been indicated that having the City pay for the Board's legal counsel was a conflict of interest. Trustee Irene Cahill indicated that she would like to discuss the pros and cons of the presenters. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Five Trustee Fabus indicated that Vanoverbeke had a lot of experience and staffing with public sector pension plans, but expressed concern regarding the fees the Boards' would incur. Trustee Fabus also expressed that he felt Attorney Lane was an ethical person and that he represented the Board. He had a lot of City of Lansing Board experience. Trustee Fabus expressed concern that he was a sole practitioner. Trustee Fabus expressed concern that City of Lansing was paying for legal counsel. Trustee Fabus believed that the members have a fiduciary responsibility to the plan and the Board must decide if the City will pay for legal counsel or the Board. Trustee Rose stated that both Asher Kelley and Attorney Lane indicated that if they were paid by the City, their obligation would be to the retirement boards. Trustee Bahr felt that the legal counsel that represents the Board should be paid from system funds. Trustee Kraus believed that two decisions should be discussed, funding and then selection of the firm. Trustee Kraus believed the first vote would be to determine if the City of the Board should pay for legal counsel. Trustee Kraus called for the question supported by Trustee Spadafore. Trustee Spadafore asked for a roll call vote. It was moved by Trustee Bahr and supported by Trustee Dedic to pay for legal representative out of pension funds. Trustee Dedic stated that this was not a new issue. Trustee Dedic would like that there was separation between City legal counsel and Board legal counsel. Trustee Dedic did believe that it should be funded by the Retirement Board. Trustee Cahill inquired how the legal counsel was paid currently. Trustee Wohlfert explained that the retirement boards would include legal counsel fees in its budgets. Trustee Kraus expressed concern about how the dollars are being spent and was this the best use of the dollars paid out of the retirement system. Trustee Kraus stated that the pension contribution was from the City, so it would be a wash on who paid the fee. It was a matter of how it was perceived, either the legal counsel would be paid by the City or the legal counsel would be paid from contributions from the City. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Six Trustee Spadafore expressed concern about the unanticipated costs from issues such as litigation against the retirement boards that would normally be absorbed by the City Attorney's Office. Trustee Wood stated the there was an agreement made between the City and the Retirement Boards to allow the trustees to have say in the decision of who staffs the Board. Trustee Wood also indicated that there is no Ordinance or rules that require the City to consult the Trustees regarding staffing the Boards. Trustee Kraus inquired about the interaction between legal counsel and independent counsel and how it would work. Trustee Spadafore expressed concern that if the system breaks ties with the City Attorney's office Adopted by the following vote: Yes: Bahr, Cahill, Dedic Kehler, Kraus, D. Parker, Spadafore. 7 — 0 No: 0. It was moved by Trustee Ryan Wilcox and supported by Trustee Chris Wilcox to pay for legal representative out of pension funds. Trustee Rose requested a roll call. Trustee Fabus inquired if Attorney Smiertka could provide his thoughts regarding the OCA paying for the legal or the Board legal. Attorney Smiertka indicated the City Attorney's Office has an ethical obligation to the Board based upon the retirement ordinances as would any attorney hired by the Board. Attorney Smiertka expressed concern about how independent counsel would interact and work with City Attorney's Office. Attorney Smiertka stated that statue did not require Boards to have their own legal counsel independent from the City. Attorney Smiertka did not feel that who pays for the attorney would eliminate the attorney's ethical obligation to the Boards. Trustee Ryan Wilcox expressed concern that the City could hire and fire the legal counsel and believed that it would be a conflict of interest. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Seven Trustee Rose stated that he believed the Boards do have the power to choose its counsel even if paid by the City. Trustee Rose expressed concern regarding using pension monies to hire counsel. Trustee Wood indicated that when the Boards wished to hire legal counsel in the past, they were told by the City Attorney's Office that they could not. With the amendments to PA 315, the Boards were given the ability to hire its legal attorney. Trustee Fabus stated that the reason the Boards had the joint meeting interviews to have unison and balance between the two Boards. He inquired if the Employees Retirement System could make a motion so there could be a joint discussion. Adopted by the following vote: Yes: Fabus, Kehler, C. Wilcox, R. Wilcox, Wohlfert, Wood -6. No: Rose— 1 The Joint Board discussed pros and cons of the presentations. Trustee Kraus expressed Vanoverbeke has experience but would have a steep learning curve. Trustee Kraus indicated that the Retirement Ordinance has not been completed by the Board and AML has the retirement system background and knowledge. Trustee Wood believed that when Clark Hill was hired it did not take long to get up to speed. Trustee Wood indicated the reason the Board has a trustee manual today is that Trustee Ryan Wilcox expressed concern regarding AML lack of redundancy of information. Trustees also expressed concern that AML was a one-person firm. Trustee Kehler stated for the record the reason I voted yes was not because I did not trust the City Attorney's office. It was moved by Trustee Chris Wilcox and supported by Trustee Rose to hire VanOverbeke, Michaud & Timmony. P.C. as its legal representative for the Police and Fire Retirement System. Trustee Fabus has been very pleased with Attorney Ken Lane. He is man of character and integrity and has no problem with how he represented the Board. Trustee Fabus believed that VanOverbeke ultimately has more resources and he had a fiduciary obligation to the plan. Joint Meeting January 14, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Eight Trustee Wood indicated that a decision must be made, the Boards would need to work with the City Attorney's office and then a transition period would follow. Adopted by the following vote: 7 — 0. It was moved by Trustee Kraus and supported by Trustee Kehler to hire VanOverbeke, Michaud & Timmony, PC as its legal representative for the Employees' Retirement System Board. Trustee Kraus requested that the two chairpersons personally contact Attorney Lane. She wanted Attorney Lane wanted to him to know that it was not the quality of his work. Trustee Rose inquired who would review the contract. Adopted by the following vote: 7 — 0. Trustee Wohlfert indicated that the Board would need to discuss with the City Attorney's office, AML and Vanoverbeke. Attorney Smiertka stated that he takes his direction from the Mayor and the president of City Council. Trustee Fabus inquired if the Board could make a formal request to the mayor or city council to ask the City Attorney to assist the Boards. It was moved by Trustee Fabus and supported by Trustee Ryan Wilcox to provide a formal request to City Council or the Mayor to have the Office of City Attorney as a part of the process of transitioning to VanOverbeke. Adopted by the following vote: 7 -0. It was moved by the Trustee Dedic and supported by Trustee Bahr to provide a formal request to the City Council of the Mayor to have the Office of City Attorney as a part of the process of transitioning to VanOverbeke. Adopted by the following: 7- 0. Trustee Wood indicated that the Mayor and Human Resources Director were ex-officio members and did not need to be excused. It was moved by Trustee Rose and supported by Trustee Fabus to adjourn the Police and Fire Retirement System Board Adopted by the following: 7 -0. It was moved by Trustee Bahr and supported by Trustee Dedic to adjourn the Employees' Retirement System Board. Adopted by the following vote; 7 -0. The Meeting adjourned at 1:03 p.m. Minutes approved on Shelbi Frayer, Secretary Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM and POLICE AND FIRE RETIREMENT SYSTEM MEETING MINUTES Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI The meeting was called to order at 8:30 a.m. A quorum of both Retirement Boards were present. Trustees present: (ERS), Bahr, Cahill, Dedic, Kehler, Kraus, D. Parker, Sanchez- Gazella, Schor, Spadafore — 9. (Police & Fire), Fabus, Kehler, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood —8. Others present: Karen Williams, Human Resources Department; Shelbi Frayer, Finance Department; Attorney James Smie Attorney & Timmo�y, P C. Attorney(City KenAttorney neth KaneffAM)L Aaron L. Castle, VanOverbeke, Michaud Group, PLC.; Greg Stump, Boomershine Consulting Group. It was moved by Trustee Ryan Wilcox and supported by Trustee Chris Wilcox to excuse Trustee Fabus, Trustee Kehler, Trustee Rose, Trustee Schor and Trustee Wood from the January 2020 Police and Fire Retirement System Board meeting. Adopted by the following vote: 8 -0 It was moved by Trustee Ryan Pollcox l ce andd suppoed by Trustee F re Retireme t System Boarld meeting g of x to approve the official minutes of the December 17, 2019. Adopted by the following vote: 8 —0. It was moved by Trustee Ryan Wilcox and supported by Trustee Chris Wilcox to approve the official minutes of the Joint Employees' Retirement System and the Police and Fire Retirement System Meeting of January 14, 2020. Adopted by the following vote: 8 — 0. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Page Two Lansing, MI It was moved by Trustee Chris Wilcox and supported by Trustee Ryan Wilcox to approve the official minutes of the Police and Fire Retirement System Commmittee of the Whole meeting of January 21, 2020. Adopted by the following vote; 8 — 0. It was moved by Trustee Bahr and supported Trustee Dedic to approve the reading of the official minutes of the Employees' Retirement System of January 21, 2020. Adopted by the following vote: 8— 0. Secretary's Report (Police and Fire): 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 372. 4 death(s): Manuel Burtch Jr., Police, died 1/24/2020, age 91, no surviving beneficiary; Rita Frayer, died 1/20/20, age 83, spouse of Fire retiree; Stephen Klein, Police, died 2/11/2020, age 66, no beneficiary. Carlton Meredith, Fire, died 1/3/20, age 91, surviving spouse to receive 50%. Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of January 2020, amounted to $2,847,047.66. Total retirement checks printed for the P&F System: 755. Total retirement checks printed for both systems: 1,699. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 0. Secretary's Report (Employees' Retirement System): 7 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 465. Total deferred: 77. 1 death(s): Audrey Dube (Police/Civilian, retired 8/1/1991), died 1/22/2020, age 89, no beneficiary. Refunds made since the last regular meeting mounted to $0. Retirement allowances paid for the month of January 2020, amounted to $2,017,307.65. Total retirement checks printed for the ERS System: 944. Total Retirement checks printed for both systems: 1699. Eligible domestic relations orders received: 1. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Three It was moved by Trustee Ryan Wilcox and supported by Trustee Chis Wilcox to approve the following application for regular age and service retirement from the Police and Fire Retirement System: Scott Clark (Police — CCLP Non-Supervisory), 10 years, 2 months of service credits, age 55, effective March 1, 2020. (From Deferred) Adopted by the following vote: 8 - 0 It was moved by Trustee Chris Wilcox and supported by Trustee Rose to approve the following application for regular age and service retirement from the Police and Fire Retirement System: Thomas Fabus (Police — CCLP Supervisory), 25 years of service credits, age 48, effective March 14, 2020. (with the purchase of 6 months of universal service credits) Adopted by the following vote: 8 - 0 It was moved by Trustee Kraus and supported by Trustee Bahr to approve of the following applications for regular age and service retirement from the Employees' Retirement System: Margarete L. Chalker, spouse of Steve Chalker, deceased, (Teamster 214 — Supervisory), 8 years, 6 months of service credit, age 58, effective March 1, 2020. (From Deferred) Kimberly Schneider,(Finance — T243 CTP), 8 years, 6 months of service credit, age 58, effective March 1, 2020 (From Deferred) Adopted by the following vote: 8 - 0. There were no requests for duty disability retirement. There were no requests for non-duty disability retirements. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Four Karen Williams announced the following upcoming training and education: One Day MAPERS Seminar— March 6, 2020 NCPERS Annual Conference — May 10-13, 2020 MAPERS Spring Conference — May 16 -19, 2020 Ms. Williams explained the travel policy and indicated that if the chairperson and more than two members would like to attend the NCPERS Annual Conference, the Boards would need to approve the out-state travel. It was moved by Trustee Ryan Wilcox and supported by Trustee Chris Wilcox to permit the Chairperson and any members who wished to attend the NCPERS Annual Conference from the Police and Fire Retirement System Board. Adopted by the following vote: 8 -0. It was moved by Trustee Dedic and supported by Trustee Bahr to permit the Chairperson and any members who wished to attend the NCPERS Annual Conference from the Employees' Retirement System Board. Adopted by the following vote; 8 -0. It was moved by Trustee Bahr and supported by Trustee Schor to approve the request for the refund of accumulated contribution from the Employees Retirement System for the following: Cody Shattuck, T243 District Court, Not Vested, $2,432.61. Adopted by the following vote; 8 — 0. Karen Williams provided the legal counsel contracts for review by the retirement boards. Attorney Abood commented that the law department did review the contract and provide amendments to the original contract. Attorney Abood indicated that the law department did remove language regarding a different fee for litigation. Attorney Abood explained that the law department did not incentive litigation. Attorney Abood also inquired about the fee structure of the contract. Attorney Castle explained the fee structure and the different rates for non-Litigation and litigation rates. He also explain that the travel costs are split with the retirement board. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Five Attorney Schor requested that the fee structure be clarified within the contract. Attorney Castle stated that he would clarify the travel expenses within the contract. Trustee Wood indicated that she did not have a problem with the fee structure but would like the expenses clarified. Attorney Schor inquired if there were any 'not to exceed' language so that the contract would not be more expensive to the City or the retirement board than what has been paid in the past. Attorney Smiertka requested to make a statement to the joint retirement boards. Attorney Smiertka commended that the City of Lansing retirement ordinances mandate that the city attorney shall be the legal advisor to the Boards. Attorney Smietka indicated that unless the city council amends the retirement ordinance, the Boards are bound by the Ordinance. Attorney Smiertka indicated that PA 314 allows legal counsel where necessary, but it is not a mandate. Attorney Smiertka read in part from a Michigan Supreme Court case: Applying the plain language of the statute, the Supreme Court concluded that Board may retain legal services in those circumstances where such counsel is necessary for the conduct of the affairs of the retirement system, it is not an open authorization to the Board ... if the legislature intended to give the Board of the retirement systems unfetted discretion to pay independent legal counsel under any circumstances it would not have included the language 'where necessary for the conduct of the affairs of the retirement system', whether independent legal counsel is 'necessary for the conduct of the affairs of the retirement system' is a determination to be made by Board on a case by case basis. Trustee Carol Wood indicated that the Retirement Ordinances can be amended. She reviewed the timeline and process for amending the ordinance. It would require a public hearing. Attorney Castle wanted it clarified that VanOverbeke's model is that the firm works for the Board of Trustees, not the City. He believed that state law is clear that Boards can hire their own legal counsel. Trustee Irene Cahill requested a copy of the Michigan Supreme Court decision. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Six Trustee Kraus clarified that the City Attorney is the legal advisior to the Board until VanOverbeke is under contract. She also clarified with Attorney Castle that the Board was not being charged by VanOverbeke for his time, while not under contract. It was moved by Trustee Ryan Wilcox and supported by Trustee Wood for the Police and Fire Retirement System that once the language was clarified regarding the travel expenses, that the VanOverbeke contract would be sent to the chairperson for signature. Trustee Rose commented that City Attorney represents the Boards. Trustee Rose commented that if he has a question or issue, he would go to the City Attorney. It was moved by Trustee Schor and supported by Trustee Rose to table the motion until the Retirement Ordinance is changed. The motion failed. Adopted by the following vote: 6 —2. It was moved by Trustee Dedic and supported by Trustee Bahr for the Employees' Retirement System that once the language was clarified regarding the travel expense that the VanOverbeke contract would be sent to the chairperson for signature. It was moved by Trustee Spadafore and supported by Trustee Kraus to table the motion until the Retirement Ordinance is changed. The motion was withdrawn from Trustee Spadafore to allow discussion. Trustee Dedic inquired to City Attorney to know if there are any additional details or obstacles that would preclude the hiring of independent legal counsel. Attorney Smiertka explained that although the Retirement Boards are allowed to hire independent legal counsel when necessary by statute, the city attorney is the legal counsel to the Boards. The retirement ordinance would need to be amended. Trustee Dedic inquired if the Retirement Ordinance was changed, would there be an issue for the administration. Trustee Schor indicated that if there is a not a further cost to the city and that there is no conflict in the Retirement Ordinance after it was amended, the administration would feel comfortable with the hire of independent legal counsel. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Seven Trustee Wood outlined a process for the consideration and approval of an Ordinance amendment that would start at the city council meeting, February 24, and the Retirement Boards could strike the language that requires the city attorney shall be the legal advisor. A public hearing could be held on March 23, followed by City Council approval. Trustee Wood indicated the Boards could recommend to City council regarding the removing the city attorney as legal advisor. It was moved by Trustee Spadafore and supported by Trustee Kraus to table the motion for the Employees' Retirement System Board until the next meeting, March 17th . The motion to table was approved: 6 -3. It was moved by Trustee Wood and supported by Trustee Rose that the Police and Fire Retirement Board recommend to City Council its support for the Retirement Ordinance change regarding legal counsel. Adopted by the following vote: 8 -0. It was moved by Trustee Spadafore and supported by Trustee Dedic that the Employees' Retirement System Board recommend to City Council its support for the Retirement Ordinance change regarding legal counsel. Adopted by the following vote: 9—0. The Retirement Office reported that the Finance Department sent a memo that details $10,698,401 pension contribution that would be transferred to the Employees' Retirement System. It was moved by Trustee Chris Wilcox and supported by Trustee Rose to accept the FY2020 Police and Fire Pension contribution. Trustee Wood requested that the Board receive notification once the contribution has been made. Adopted by the following vote: 9 —0. It was moved by Trustee Wood and supported by Trustee Chris Wilcox to nominate and elect Trustee Eric Wohlfert as chairperson and Trustee Ryan Wilcox as vice chairperson for the Police and Fire Retirement System Board. Adopted by the following vote: 8 - 0 The 2020 Subcommittee membership was appointed by the chairperson: Disability Committee — R. Wilcox, C. Wilcox, Wohlfert Investment Committee — Rose, Wohlfert, Wood, C. Wilcox Education Committee — C. Wilcox, R. Wilcox, Wood Special Projects — R. Wilcox, Wood, Wohlfert Ex-offico legal counsel BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Trustee Wood supported by Trustee Ryan Wilcox moved the adoption of the following Resolution: RESOLUTION NO. 2020-Jan AN RESOLUTION TO DECLARE THE OFFICE OF TRUSTEE VACATED WHEREAS, Trustee Thomas Fabus has diligently served on the Board of Trustees of the Lansing Police and Fire Retirement System for several years;and WHEREAS, Trustee Fabus has notified the Board of Trustees that he is retiring from his position with the City of Lansing effective March 14,2020;and WHEREAS, Section 294.02(c)(4)of the Lansing Codified Ordinances provides that once a Trustee leaves the employ of the City, such Trustee is considered to have resigned from the Board and the Board must declare by resolution that the office is vacated. NOW,THEREFORE,BE IT RESOLVED AS FOLLOWS: 1. The Board of Trustees of the Lansing Police and Fire Retirement System declares the office of trustee held by Thomas Fabus vacated as of the date of this Resolution. 2. The Board of Trustees directs the Retirement Analyst to begin the process to fill the vacated trustee office within 60 days in accordance with Section 294.02(c)(4)of the Lansing Codified Ordinances. 3. The Board of Trustees extends its sincerest thank you to Thomas Fabus for his years of service and wishes him well in his future endeavors. 4. All resolutions and parts of resolutions insofar as they conflict with the provisions of this Resolution are rescinded. Yeas: Trustees: Fabus.Kehler.Rose Schor.C Wilcox,R Wilcox Wohlfert Wood-8 Nays:Trustees: 0 Abstain: Trustees: 0 Absent:Trustees: 0 Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Nine Karen Williams distributed a posting for the election of the Police Trustee to the Police and Fire Retirement System Board to fill the unexpired term of Trustee Fabus. Karen Williams reviewed a request from a duty disability retiree, Mr. Robert Vargas. He has requested that he be able to place his current wife as his beneficiary for his pension. Mr. Vargas believes that because he has not converted to age and service that she should be allowed to name his current wife. Attorney Ken Lane opined that if he must provide the Police and Fire Retirement Board with divorce paperwork. Attorney Aaron Castle opined that the Police and Fire Retirement Board would need to amend its policy to allow the current wife. Karen Williams updated the Employees' Retirement System Board that members have received the various sections of the Retirement Ordinance. Trustee Parker referred the Retirement Ordinance to the Special Projects committee. Attorney Lane will distribute a copy of the entire Employees' Retirement System Ordinance to the special projects committee and the membership. It was moved by Trustee Dedic and supported by Bahr Rose to accept the Employees' Retirement System pension contribution. Adopted by the following vote: 9 — 0. The Retirement Office will provide an updated subcommittee list at the next meeting. It was moved by Trustee Spadafore and supported by Trustee Kraus to approve the Funding information Report for Employees' Retirement System Board. Adopted by the following vote: 9 -0 Attorney Aaron Castle reviewed the legal counsel report. The report detailed his meeting with the retirement office to gather information, and the federal SECURE act. Joint Meeting February 18, 2020 Council Conference Room Tuesday, 8:30 a.m. 10th Floor City Hall Lansing, MI Page Ten Karen Williams distributed the Quarterly Expense report and the proposed Police and Fire Retirement System 2020 budget and the Employees' Retirement System 2020 budgets for review. Trustee Schor requested that the fees for non-litigation legal expenses would be $20,000 per board. Ms. Shelbi Frayer reviewed the City Travel/Conference policy. Ms. Frayer stated that for the City, all out-of state travel comes through a four-signature process. Ms. Frayer indicated that because the Board approves its out-of-state travel, it would not need to go through the four-signature process. Ms. Frayer also reported that for those who had credit cards, the statements would be posted online. Trustee Kraus requested that the City Travel policy be forwarded to the retirement board for review and to be incorporated with its Conference and Education policy. Karen Williams updated that Joint Boards that the Retirement Office would be working with Tegrit to update the retirement software to incorporate the new collective bargaining agreements that were approved. Ms. Lynn Goodwin, Institutional Relationship Manager for Franklin Templeton, provided an overview of the investment team. Mr. Jason La Rocco, Senior Product Manager provided an update and overview of the organizational structure. Mr. LaRocco provided a review of the market environment, and portfolio performance. Mr. Burk reviewed the 4th quarter investment performance of the Police and Fire Retirement System and the Employees' Retirement System. Mr. Burk discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending January 31, 2020. Mr. Burk reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Burk provided a review of the structure of both plans and discussed fees and asset allocation. Mr. Burk reviewed the asset allocation for the Police and Fire Retirement System and the Employees' Retirement System and discussed changes in the investment managers for the fixed income strategy. The Joint Boards agreed to have an investment meeting March 24, 2020 to interview and review potential managers. Mr. Greg Stump, Boomershine Consulting Group spoke under public comments. He provided the current status, impact of the 2019 investment experience for the Employees' Retirement System and the Police and Fire Retirement System actuarial valuation. Mr. Stump also discussed changes in funding outlook and project scenarios. It was moved by Trustee Rose and supported by Trustee Chris Wilcox to adjourn the Police and Fire Retirement System Board Adopted by the following: 8 -0. It was moved by Trustee Bahr and supported by Trustee Dedic to adjourn the Employees' Retirement System Board. Adopted by the following vote: 6 -0. The Meeting adjourned at 12:33 p.m. Minutes approved on Shelbi Frayer, Secretary Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM And POLICE AND FIRE RETIREMENT SYSTEM MEETING MINUTES Joint Meeting May 26, 2020 Via Zoom meeting Tuesday, 8:30 a.m. The meeting was called to order at 8:31 a.m. A quorum of both Retirement Boards were present. Trustees present: (ERS), Bahr, Cahill (8:40), Dedic, Kehler, Kraus, D. Parker, Sanchez- Gazella, Schor — 8. (Police & Fire), Fabus, Lewandowsky, Kehler, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood —8. Excused: Spadafore (ERS) Others present: Karen Williams, Human Resources Department; Aaron L. Castle, VanOverbeke, Michaud & Timmony, P.C. It was moved by Trustee Bahr and supported by Trustee Linda Sanchez-Gazella to excuse Trustee Spadafore from the May Joint Police and Fire Retirement System Board meeting. Adopted by the following vote: unanimous It was moved by Trustee Chris Wilcox and supported by Trustee Ryan Wilcox to approve the official minutes of the Police and Fire Retirement System Board meeting of April 21, 2020. Adopted by the following vote: unanimous It was moved by Trustee Bahr and supported by Trustee Cahill to approve the official minutes of the Employees' Retirement System Meeting of April 21, 2020. Adopted by the following vote: unanimous There were no public comments. 5 Joint Meeting May 26, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Two Secretary's Report (Police and Fire): 0 new sworn fire member(s), 1 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 371. 0 death(s): Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00. Retirement allowances paid for the month of April 2020, amounted to $2,843,569.60. Total retirement checks printed for the P&F System: 752. Total retirement checks printed for both systems: 1,697. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 1. Secretary's Report (Employees' Retirement System) 0 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers,1 retired. Total active membership: 464. Total deferred: 76. 1 death(s): Donna Allen, died 4/18/2020, age 76, beneficiary of UAW retiree. Refunds made since the last regular meeting mounted to $0. Retirement allowances paid for the month of April 2020, amounted to $2,022,131.08. Total retirement checks printed for the ERS System: 945. Total Retirement checks printed for both systems: 1697. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 1. It was moved by Trustee Ryan Wilcox and supported by Trustee Carol Wood to approve the following application for Regular Age & Service retirement from the Police and Fire Retirement System: Bryan Curtis (Police — Supervisory), 25 years of service credits, effective June 8, 2020 (with the purchase of 16 months of service credits). Sworn Date: 10/28/1996 Adopted by the following vote: unanimous Joint Meeting May 26, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Three It was moved by Trustee Chris Wilcox and supported by Trustee Wood to approve the following application for Regular Age & Service retirement from the Police and Fire Retirement System: Antoni Martinez (Fire — IAFF), 25 years of service credits, age 48, effective June 11, 2020. Sworn Date: 6/26/1995 Antonio Ortiz (Fire — IAFF) 25 years of service credits, age 57, effective June 15, 2020. Sworn Date: 6/26/1995 Frank Mobley (Police — CCLP Non Supervisory), 25 years of service credits, age 47, effective June 12, 2020 (with the purchase of 1 month of universal service credits). Sworn Date: 7/28/1995. Anthony Phillips (Fire — IAFF), 23 years of service credits, age 55, effective May 15, 2020. Sworn Date: 6/9/1997 Chad Rogers (Fire — IAFF), 25 years of service credits, age 54, effective June 16, 2020. Sworn Date: 6/26/1997 David Sileo (Police — CCLP Supervisory), 25 years of service credits, age 47, effective June 8, 2020 (with the purchase of 8 months of universal service credits) Sworn Date: 3/5/1996 Peter Vandenberg (Police —CCLP Non-Supervisory), 15 years of service credits, age 55, effective June 1, 2020 (From Deferred) Adopted by the following vote: unanimous It was moved by Trustee Bahr and supported by Trustee Kraus to approve the following application for Regular Age and Service retirement from the Employees' Retirement System: Susan C. Graham (Human Resources — NonBargaining) 14 years, 4 months of service credits, age 58, effective June 1, 2020 (has 16 years 1 month of eligibility for retirement and health care from Deferred) Karen Phelps (Police/Civilian — FOP 911), 19 years, 10 months of service credits, age 50, effective June 1, 2020. (From Deferred) Adopted by the following vote; unanimous Joint Meeting May 26, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Four There were no requests for duty disability retirements. There were no requests for non-duty disability retirements. Karen Williams notified of the Retirement Boards of the upcoming webinar education provided by MAPERS and NCPERS organizations. It was moved by Trustee Kraus and supported by Trustee Bahr to approve the request for refund of accumulated contributions from the Employees Retirement System for the following: Sheldon Humphreys, UAW, vested $20,427.17 Adopted by the following vote; unanimous Attorney Aaron Castle provided a legal report for the Police and Fire Retirement System Board. Attorney Castle reviewed the Board's policies for compliance with PA 314. Attorney Castle recommended action on some older policies and recommended additional policies in the area of Board Governance, Administrative and Investment/Miscellaneous. Attorney Castle also received information from the Retirement Office of a duty disability member who inquired if an inheritance would be subject to the annual income verification process. Trustee Wood inquired if the $1200 federal payment who qualify as income for the verification process. Attorney Castle indicated that Board did not have a formal policy on what constituted income but he would review the matter. Attorney Castle also reviewed the CARES act and instructed that the legislative was voluntary. The Retirement Ordinance will need to be amended. Trustee Wohlfert inquired about how the non duty disability process would apply to members who may not be able to work due to Covid-19. He inquired if the member could be called back to work at a later time, would they receive service credits for the time off duty. Joint Meeting May 26, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page Five Attorney Castle believed that the person would need to be determined and permanently disabled. The non-duty disability would follow the same provisions as the duty disability process. The Board does not have the authority to guarantee employment. Trustee Wohlfert inquired about members who were recently deployed by the military and who return to work. He requested clarification on whether those members were required to pay contributions for the time that they were on leave. Trustee Wohlfert indicated that he received information from the retirement office regarding military leave described in the Retirement Ordinance. The Retirement Ordinance did not state the members were required to pay contributions for the time deployed. Attorney Castle requested to review the issue and wanted to make sure the section was consistent with federal guidelines. The Police and Fire Retirement System Board requested a formal opinion from Attorney Castle regarding intervening military leave service. Trustee Scott Dedic stated at the time the original Retirement Ordinance was written, there were no employee contributions paid to the systems. Trustee Dedic requested that Attorney Castle compare the two retirement ordinances with respect to the veterans, so that both ordinances will be similar. Attorney Aaron Castle provided a legal report for the Employees' Retirement System Board. Attorney Castle reviewed the Board's policies for compliance with PA 314. Attorney Castle recommended action on some older policies and recommended additional policies in the area of Board Governance, Administrative and Investment/Miscellaneous. Trustee Parker indicated that the UAW entered a memorandum of understanding regarding voluntary furlough. Trustee Parker inquired if the Board needed to act upon the MOU regarding retirement service credits. Attorney Castle requested to review the memorandum of understanding and he requested that the Board review the MOU prior to action. Attorney Castle will provide a memo regarding the voluntary furlough and its effect on retirement service credits. Joint Meeting May 26, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Six Karen Williams indicated that Trustee Cahill was elected to complete the term of Mark Parker who retired. The term would expire June 30, 2020. Ms. Williams requested direction for the election. Trustee Parker inquired what needed to be done by the Board to delay the election because City hall is closed and employees working for home. Attorney Castle indicated the Employees Retirement System Board sets the rules for election of trustees. Trustee Kraus was concerned about having an equitable election due to lack of appropriate notification to employees, and the nominating petitions. It was moved by Trustee Kraus and supported by Trustee Dedic to suspend the election process for Trustee until City Hall. Adopted by the following vote: unanimous Karen Williams reported the income verification were due April 30, 2020. There were two retirees had not submitted verification. Attorney Aaron Castle reviewed Trustee Training policy and proposed having a Zoom meeting for new Trustees who are required to have orientation. Mr. Nathan Burk indicated that Asset Consulting Group also provided training for new trustees and offered to join the orientation session. Attorney Castle reviewed the CARES Act and again indicated that the provisions of the ACT are optional for retirement plans to implement. Attorney Castle also reviewed the SECURE Act. Trustee Carol Wood inquired if the Employees' Retirement System Board needed to extend the term of Trustee Irene Cahill. Attorney Castle stated that he would review the issue and provide a legal opinion regarding whether the Board can extend the term. Karen Williams reviewed the Quarterly Expenses Reports for the Employees Retirement System and the Police and Fire Retirement System Boards. Joint Meeting May 26, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Six Karen Williams reported that Northern Trust has requested the retirement systems obtain a Legal Entity Identifier (LEI). Ms. Williams reached out to Asset Consulting Group that provided the explanation that the LEI is required to continue lending securities to EU domiciled borrowers. The identifier would allow regulator to know whom EU borrowers are borrowing from. It is an added layer of transparency and Northern Trust will handle all reporting requirements. The cost to obtain the LEI should be no more than $100 for each plan. It was moved by Trustee Kehler and supported by Trustee Kraus to obtain the Legal Entity Identifier for the Employees' Retirement System Board. Adopted by the following: unanimous It was moved by Trustee Wood and supported by Trustee Chris Wilcox to obtain the Legal Entity Identifier for the Police and Fire Retirement System Board. Adopted by the following vote: unanimous Ms. Ami Fox, Director, Global Equity Institutional Sales, Artisan Partners provided an overview of the investment team. She provided an update and overview of the organizational structure. She discussed the investment philosophy and structure of the Artisan team. Ms. Fox provided a review of the market environment, Artisan Partners portfolio performance for the Police and Fire Retirement System. Mr. Patmon Malcom and Ms. Katie O'Connor, Earnest Partners provided an overview of the investment team. Ms. O'Connor provided a review of the portfolio performance for the Employees Retirement System. Mr. Nathan Burk of Asset Consulting Group reviewed the Quarterly Performance reports for the 1st quarter of 2020. Ms. Burk discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending April 30, 2020. Mr. Burk reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Burk provided a review of the structure of both plans and discussed fees and asset allocation. Ms. Irene Cahill inquired if Attorney Castle could also review the Teamster 243 and Teamster 214 Voluntary Furlough memorandum of understanding in regards to retirement service credits. It was moved by Trustee Chris Wilcox and supported by Trustee Ryan Wilcox to adjourn the Police and Fire Retirement System Board May joint meeting. Adopted by the following vote: unanimous f It was moved by Trustee Irene Cahill and supported by Trustee Bahr to adjourn the Employees' Retirement System Board May Joint meeting. Adopted by the following vote: unanimous The Meeting adjourned at 10:44 p.m. Minutes approved on Shelbi Frayer, Secretary Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM And POLICE AND FIRE RETIREMENT SYSTEM MEETING MINUTES August 18, 2020 Joint Meeting Tuesday, 8:30 a.m. Via Zoom meeting The meeting was called to order at 8:31 a.m. A quorum of both Retirement Boards were present. ERS), Bahr, Cahill, Dedic, Fox, Kraus, Parker, Sanchez-Gazella, Trustees present: ( Schor (8:47) — 8. C. Wilcox, R. Wilcox, Wohlfert, (Police & Fire), Fox, Lewandowsky, Rose, Schor(8:47), Wood —8. Excused: Spadafore (ERS) resent: Karen Williams, Human Resources Department; & Timmoby P Cert I; Tom Others p Mondrian Finance Department; Aaron azard anvlestmeno ZsoltkMester, Peter J. Rivielloo, M Asset Franzeze, Mike Powers, Lazard Nathan Investments; Gregory Boomersine Consulting Group; Consulting Group It was moved by Trustee Dedic and supported by Trustee Cahill to excuse Trustee from the August Joint Employees' Retirement System and Police and Fire Spadafore Retirement System Board meeting. Adopted by the following vote: unanimous There were no public comments. Secretary's Report (Police and Fire): 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total:7 Police, died lship: 375.Carroll Lee,2 death(s e Barger, Police, died 7/11/2020, age3 no beneficiary; 8/4/2020, age 91, surviving spouse to receive 50%. Refunds made since the last regular meeting amounted to $O.00. Reimbursements paid for the month of July 2020, amount to $19,644.35. Retirem the System year-to-date ent allowances amounted to $2,924,008.08. Total retire en both systems:t checks r11,707nted forpomes&c relations 760. Total retirement checks printed for order received: 0. Domestic relations orders pending: O.Eligible Domestic Relations Order Certified:0. August 18. 2020 Joint Meeting Tuesday, 8:30 a.m. Via Zoom meeting Page Two Secretary's Report (Employees' Retirement System): 4 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 482. Total deferred: 76. 2 death(s): Violet Clark, died 7/11/2020, age 82, beneficiary of UAW retiree; Joseph Swanson, Parks, retired 7/24/1993, died 7/28/2020, age 90, no surviving beneficiary. Refunds made since the last regular g l reeting m antel t d to $0. Retirement allowances paid for them July to $2,022,919.08. Total retirement checks printed for the ERS System: 947. Total Retirement checks printed for both fat relations orders7.pending:le domestic 0. Eligible relations orders received: 0. Domestic domestic relations orders certified: 0. There are no applicants for regular age and service requests for the Police and Fire Retirement System. It was moved by Trustee Kraus and supported by Trustee Bahr to approve the following application for Regular Age & Service retirement from the Employees' Retirement System: Kevin Lytle (Public Service — UAW), 25 years, 3 months of service credits, age 58, effective 9/30/2020 Sid Scrimger (Public Service — T580 SUP), 8 years, 8 months of service credits, age 62, effective 8/15/2020 Aaron Winchell (Public Service — UAW), 25 years, 8 months of service credits, age 50, effective 8/14/2020 Adopted by the following vote: unanimous Karen Williams reported a request for duty disability retirement for applicant #2020- P0818. Trustee Wohlfert referred the request to the duty disability subcommittee. It was moved by Trustee Chris Wilcox and supported by Trustee Fox to send applicant #2020-P0818 to the medical director for duty disability evaluation. Adopted by the following roll call vote Fox, Lewandowsky, Rose, C. Wilcox R. Wilcox, Wohlfert, Wood — 7. Joint Meeting August 18, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Three There were no requests for duty disability for the Employees' Retirement System. There were no requests for non duty disability retirements. Karen Williams reported that the MAPERS Fall Conference had been cancelled. Hotel registrations will be refunded. Ms. Williams also reported that MAPERS encouraged members to participate in their online seminars and trainings. Attorney Castle provided a legal counsel report for the Police and Fire Retirement System Board. Attorney Castle reviewed the Disability Retirement offsets policy that was approved at the July meeting and provided an amended Certification of Earning Form for Board review. It was moved by Trustee Rose and supported by Trustee Wilcox to approve the amended Certification of Earning Form for the Police and Fire Retirement System. Adopted by the following vote: Fox, Lewandowsky, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. —8. Attorney Castle reviewed the City of Lansing Police and Fire Retirement System Intervening Military Service Credit Policy. He explained the purpose of the policy, definitions. He added that the policy shall be interpreted and administered in accordance with the provisions of USERRA governing the rights of individuals reemployed by the City after a period of Intervening Military Service. He discussed members who return to employment, the repayment of missed contributions, and reporting. It was moved by Trustee Chris Wilcox and supported by Trustee Rose to approve the City of Lansing Police & Fire Retirement System Intervening Military Service Credit Policy. Adopted by the following vote: Fox, Lewandowsky, Rose, Schor, C.Wilcox, R. Wilcox, Wohlfert, Wood. —8. Attorney Castle discussed his legal opinion that addressed a recent request from a current retiree to change her beneficiary under the City of Lansing Police Officer and Firefighters Retirement System. Attorney Castle indicated that the election of a survivor election option must be made within 30 days prior to a member's retirement. The election of an Option retirement allowance provides for a 50% surviving benefit to the retiree's legal spouse at the time of retirement, not a post-retirement spouse. Attorney Castle indicated that the member acknowledged in writing that the nomination or beneficiary was irrevocable upon retirement. Attorney Castle opined that the member's request to change the nomination of retirement allowance survivor beneficiary was legally impermissible under the provisions of the Retirement System. Attorney Castle further opined that the member may be eligible to designate a new beneficiary for the purposes of receiving a refund of any remaining accumulated contributions in the event of death prior to receiving the aggregate retirement allowance payments equal to the accumulated contributions standing to the member's credit at the time of retirement. Joint Meeting August 18, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Four Attorney Castle stated that a copy of the legal memo could be provided to the member. Trustee Bob Rose requested that Attorney Castle draft a letter to the member regarding the legal opinion. Trustee Wood inquired if the legal opinion could be placed on file. It was moved by Trustee Wood and supported by Trustee C. Wilcox that the legal opinion regarding the change of beneficiary be placed on record for the Police and Fire Retirement System. Adopted by the following vote: Fox, Lewandowsky, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. 8. Trustee Ryan Wilcox inquired about members who have been laid off and how it would affect their retirement eligibility. Trustee Wohlfert added that members who were laid off have asked if they could pay those missed contributions. Trustee Wohlfert inquired how the Retirement Board could audit the records of those members who have been laid off. Ms. Williams, Retirement Ooffice, responded that she was aware of the 2011 layoff of embers, but unaware of any other time frames. Ms. Williams explained that the current system accrues service credits for members who would have received compensation. Members who are laid off and not getting paid, will not accrue service credit. Ms. Williams indicated that laid off members had to be re-certified and re-sworn. Ms. Williams believed that the Retirement Office acquired sworn statements from the City Clerk's office. Trustee Ryan Wilcox inquired if he could provide a list of names to the Retirement Office to audit the members' file. Trustee Linda Sanchez-Gazella stated the request for the audit should come from the individual member. Trustee Sanchez-Gazella believed that an email could be sent out to members who had questions regarding their retirement date. Trustee Wohlfert inquired if an audit could be done and the results sent to the laid off members. Trustee Wohlfert indicated that he would send an email out to fire members and Trustee Ryan Wilcox would send an email out to police members who had breaks in service that will affect service credits. Those members would be directed to contact the Retirement Office. Attorney Castle indicated that there should be a disclaimer sent with results. The retirement eligibility is subject to change and the service credits are estimates based on the current information. Joint Meeting August 18, 2020 Via Zoom Meeting Tuesday, 8:30 a.m. Page Five Trustee Dennis Parker expressed concerned for establishing a precedent to send out adjusted retirement dates whenever there is a break in service. Ms. Karen Williams reported that the retirement office received a repayment of Mr. Mitchel Stadel of $19,644.35 accumulated contributions that were withdrawn. Ms. Williams requested that Ms. Stadel complete his repayment form and submit to the Retirement office. Attorney Castle reviewed the Disability Retirement offsets policy that was approved at the July meeting and provided an amended Certification of Earning Form for Board review. It was moved by Trustee Kraus and supported by Trustee Bahr to approve the amended Certification of Earning Form for the Employees' Retirement System. Adopted by the following vote: Fox, Lewandowsky, Rose, Schor, C. Wilcox, R. Wilcox, Wohifert, Wood. — 8. Karen Williams provided an update of the Employees Retirement System Board of Trustee election. The election will fill an at-large trustee position on the Board that would expire June 30, 2020. Nominating petitions would be due September 18, 2020. If required, a primary election would be held Thursday, September 24, 2020 and the general election would be held September 30, 2020. Karen Williams informed the Board that the Information Technology department sent notification that it would charge $15 monthly for use of the City's Zoom license. The chairs requested that the retirement board purchase its own Zoom license and split the costs between both boards. It was moved by Trustee Bahr and supported by Trustee Kraus for the Employees' Retirement System to purchase a Zoom license using its administrative budget, and to split the cost with Police and Fire Retirement System Board. Adopted by the following vote: unanimous It was moved by Trustee Wood and supported by Trustee Rose for the Police and Fire Retirement System to purchase a Zoom license using its administrative budget, and to split the cost with Employees' Retirement System Board. Adopted by the following vote: unanimous Karen Williams reviewed the Quarterly Expenses Reports for the Employees Retirement System and the Police and Fire Retirement System Boards. Joint Meeting August 18, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Six Mr. Tom Franzeze provided an overview of the Lazard investment team. He provided an update of the organizational structure and discussed the investment philosophy and structure of the Artisan team. Mr. Powers discussed positioning in the portfolio, value investing in the market place. He provided a review of the market environment, and the portfolio performance for the Employees' Retirement System. Mr. Peter J. Riviello, client service, provided an overview of the Mondrian investment team. Mr. Zsolt Mester provided a review of the international equity portfolio performance for the Police and Fire Retirement System. Mr. Greg Stump, Boomershine Consulting Group, provided an update for the actuarial valuation. Mr. Stump indicated that he believed the valuations would be completed by the November meeting. He updated the Board that he received member data from the Retirement Office and was still waiting from financial data from the Finance Department. Mr. Stump stated that he would contact Mr. Widigan to share with him the data that has been supplied in the past. Trustee Wood indicated that the Board had a policy for when the data was needed from the Finance Department. Trustee Wood stated that she realized that there was a new finance director but hoped the information could be provided in a timely manner. Mr. Widigan indicated that he would work with Jake Brower to get the data needed for the actuarial report. Mr. Nathan Burk of Asset Consulting Group reviewed the Quarterly Performance reports for the 2nd quarter of 2020. Ms. Burk discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending July 31, 2020. Mr. Burk reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Burk provided a review of the structure of both plans and discussed fees and asset allocation. Mr. Burk recommended redeeming quarterly cash flows through the remainder of the year. He indicated that ABS offshore was overvalued and monies could be redeemed at the end of the year. ABS would need a 45 day notice. Mr. Burk reviewed the Employees' Retirement System quarterly cash flow request for $6.5 million. Asset Consulting Group recommendation was to redeem $3 million from William Blair portfolio, $3.5 million from Western Asset portfolio. Joint Meeting August 18, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Seven It was moved by Trustee Kraus and supported by Trustee Bahr to redeem from the Employees' Retirement System portfolio: $3,000,000, from William Blair and $3,500,000 from Western Asset for quarterly cash flow needs as outlined by Asset Consulting group memo, and $20,000 from securities lending for administrative expenses Adopted by the following vote: Bahr, Cahill, Dedic, Kraus, D. Parker, Sanchez-Gazella, Schor— 7. Mr. Burk reviewed the Police and Fire Retirement System quarterly cash flow request for $9.0 million. Asset Consulting Group recommendation was to redeem $1.5 million from the William Blair portfolio and $2.5 million from the T. Rowe Price portfolio, $2.5 million from the NT S & P 500 index Fund, and $2.5 million from the Artisan investment. It was moved by Trustee Chris Wilcox and supported by Trustee Wood to redeem from the Police and Fire Retirement System portfolio: $2,500,000 Northern Trust S&P 500 Index, and $2,500,000 from T. Rowe Price, and $1,500,000 from William Blair, and $2,500,000 from Artisan for quarterly cash flow needs as outlined by Asset Consulting Group memo, and $20,000 from securities lending for administrative expenses. Adopted by the following vote: Lewandowsky, Rose, Schor, C. Wilcox, Wohlfert, Wood - 7. It was moved by Trustee Wood and supported by Trustee Rose to adjourn the Police and Fire Retirement System and Employees' Retirement System Board August Joint meeting. Adopted by the following vote: unanimous The Meeting adjourned at 10:57 a.m. Minutes approved on 9/8/2020_ Robert Widigan, Secretary Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM And POLICE AND FIRE RETIREMENT SYSTEM MEETING MINUTES November 10, 2020 Joint Meeting Tuesday, 8:30 a.m. Via Zoom meeting The meeting was called to order at 8:30 a.m. A quorum of both Retirement Boards were present. Trustees present (via remote): (ERS), Bahr (Lansing), Dedic (Dimondale), Ebright (Lansing), Kirkland (Lansing), Kraus (Delta Township), Parker (Lansing), Sanchez- Gazella (Lansing), Schor (Lansing)(8:47) — 8. (Police & Fire), Kirkland (Lansing), Rose (Lansing), Lansing)(8:47), C. Wilcox Schor (Lansing), R. Wilcox (Lansing), Wohlfert (Westphalia), Wood (Lansing) —7• Excused: Spadafore (ERS); Lewandowsky (Police and Fire) Others present: Karen Williams, Human Resources Department; Robert Widigan, Finance Department; Bart Carrigan, citizen representative; Aaron L.arnahan, TCRowe VanOverbeke, Michaud & Timmony, P.C.; Michelle ConsultingaGro Ira up;CNathan Burk, Tom Price Investment; Gregory Stump, Boome Janish, Asset Consulting Group It was moved by Trustee Kraus and supported by Trustee Kirkland to excuse Trustee Sp adafore from the November Joint Employees' Retirement System and Police and Fire Retirement System Board meeting. Adopted by the following roll call vote: Yes: Bahr, Dedic, Ebright Kirkland, Kraus, Parker, Sanchez-Gazella, Schor. — 8. No: 0 It was moved by Trustee C. Wilcox and supported by Trustee Rose to excuse Trustee Lewandowsky from the November Joint Employees' Retirement System and Police an Fire Retirement System Board meeting. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. — 7. No: 0 There were no public comments. November 10, 2020 Joint Meeting Tuesday, 8:30 a.m. Via Zoom meeting Page Two Secretary's Report (Police and Fire): 0 new sworn fire member(s), 0 new sworn police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 375. 1 death(s): Carroll Lee, Police, died 8/4/2020, age 91, surviving beneficiary to receive 50/°. Refunds made since the last regular meeting amounted to $11 ,878.28. Reimbursements to the System year- to-date amount to $19,644.35. Retirement allowances paid for the month of October 2020, amounted to $2,879,629.58. Total retirement checks printed for the P&F System: 754. Total retirement checks printed for both systems: 1,700. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified:1. Secretary's Report (Employees' Retirement System): 3 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 481. Total deferred: 76. 3 death(s): Larry Ingalls, Public Service, died 11/1/2020, age 81, surviving beneficiary to receive 100%; Lydia McMillan, Police — Civilian, died 10/10/2020, age 93, no surviving beneficiary; Melvin Ott, Planning, died 10/6/2020, age 75, surviving beneficiary to receive 100°/Rti eme Refunds nt allowances paid forlthe ast regular meeting mounted to $4,543.20e month of October 2020, amounted $Tot0a15R Retirement hecks retirement pr rated checks printed for the ERS System: 946. for both systems: 1,700. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Wood and supported by Trustee Rose to from the Pol ceaa prove the following t application for Regular Age & Service retirement System: Paul Beasinger (Police — CCLP SUP), 25 years of service credits, age 47 effective 12/15/20 Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. — 7. No: 0 Joint Meeting November 10, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Three It was moved by Trustee Dedic and supported Trustee Kirkland to approve the following application for Regular Age and Service from the Employees' Retirement System: Karen Heslip (Finance — T243), 20 years, 1 month of service credits, age 58, effective 1/1/2021 (from Deferred Adopted by the following roll call vote: Yes: Bahr, Dedic, Ebright Kirkland, Kraus, Parker, Sanchez-Gazella, Schor. — 8. No: 0 Karen Williams reported that the medical report form Dr. Roth had been received for the request for duty disability retirement of applicant #2020- P0818. There were no requests for duty disability for the Employees' Retirement System. There were no requests for non duty disability retirements. Karen Williams reported that each year the boards pay membership dues for the following organization: IFEBP, ($532.50, MAPERS ($200), NCPERS ($260). It was moved by Trustee Kirkland and supported by Trustee Wood to approve the payment of the membership dues for IFEBP, MAPERS and NCPERS for the Police and Fire Retirement System Board. Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. — 7. No: 0 It was moved by Trustee Kraus and supported MAPERS,Trustee aDedic NCPERSrfoe the the payment of the membership dues Employees' Retirement System Board. Adopted by the following roll call vote: Yes: Bahr, Dedic, Ebright Kirkland, Kraus, Parker, Sanchez-Gazella, Schor. — 8. No: 0 It was moved by Trustee C. Wilcox and supported by Trustee Kirkland the following request for refund of accumulated contributions from the Police and Fire Retirement System: Jonathan Hulst, IAFF, not vested $16,066.10 Adopted by the following roll call vote: Yes: Kirkland, Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. — 7. No: 0 Joint Meeting November 10, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Four It was moved by Trustee Dedic and supported by Trustee Kirkland to approve the following requests for the refund of accumulated contributions from the Employees' Retirement System: Kristen Simmons, T214 Nonsupervisory, not vested $6,402.32 Shannon Williams, District Court T243, not vested $14,717.47 Adopted by the following roll call vote: Yes: Bahr, Dedic, Ebright Kirkland, Kraus, Parker, Sanchez-Gazella, Schor. — 8. No: 0 Mr. Greg Stump provided a summary of the actuarial valuations for the Police and Fire Retirement System and the Employees Retirement System. He discussed potential changes and a funding outlook for the retirement systems. Attorney Stump reviewed the current funding progress, employee and city contributions. Attorney Stump discussed potential changes to the investment return assumption, mortality tables and the amortization. He reviewed the impact of the potential changes to funding and the annual contribution for the retirement systems. Mr. Stump also provided an overview of the demographic assumptions from the Experience study that would be applied as of 12/31/2020. Attorney Castle provided a legal counsel report for the Police and Fire Retirement System Board. Attorney Castle presented the City of Lansing Police and Fire Retirement System Authorized Signers Resolution for Board approval. He explained that the standing resolution is a best practice for fiduciaries of retirement systems. Attorney Castle added language that the chairperson would be provided advance written notice in all instances requiring signatures on behalf of the Board, even if the Board Chairperson was not available to sign. It was moved by Trustee Wood and supported by Trustee Chris Wilcox to approve the Authorized Signers resolution. Adopted by the following vote: Yes; Rose, Schor, C. Wilcox, R. Wilcox, Wohlfert, Wood. —6. No. 0 Attorney Castle reviewed the City of Lansing Police and Fire Retirement System Intervening Military Service Credit Policy that was adopted at the last joint meeting. Attorney Castle clarified the definition of the military service that would fall under USERRA. He outlined the form and procedures to be used with the policy. The form had options regarding contribution repayment: via payroll deductions or lump sum. Attorney Castle that he raised a question whether it was administratively feasible to have contribution repayment through the City's payroll system. Attorney Castle received a response from Finance that questioned the legality of the policy. Attorney Castle indicated that he was confident that the policy was legal. He further explained that employee contribution are made on a pre-tax basis. Joint Meeting November 10, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Five Members who pay their contribution on by lump sum would be after tax and Finance/payroll would need to track the contributions until retirement. Trustee Wood inquired if Attorney Castle had contacted Human Resources regarding payroll deduction for contribution repayment. Attorney Castle reported that he had only received an email from Finance that questioned the legality of the policy and deferring the question regarding payroll deduction to the City Attorney and Human Resources. Trustee Schor inquired if the question of legality had been raised by the City Attorney. Trustee Schor requested that Attorney Castle contract the City Attorney in addition to Human Resources. Attorney Castle reported that he contact Northern Trust regarding the Notice of Confidentiality required to be accepted in order to access the Northern Trust's annual Systems and Organizations Controls (SOC1) report. Northern Trustee indicated that the Notice was intended to prevent disclosure of proprietary info to competitors. Attorney Castle received an email from Northern Trust that the Board, its legal counsel, and/or other third party advisors could review the report. Attorney Castle indicated that he would review the document and provide a report to the Board. Trustee Wood requested that the document be sent to the Information Technology department for review. Attorney Castle also discussed arranging virtual training sessions in accordance with the Board's Trustee Training policy. Trustee Wood requested that legal training be included for annual training for trustees. Karen. Williams, Retirement Office, updated the Police and Fire Retirement System Board regarding the service credit audit for laid-off officers. Ms. Williams had received request from Police members in response to Trustee Ryan Wilcox's email. Ms. Williams reviewed a time frame in which to complete the Police members, then she would move to the fire members who had been laid-off before expanding the audit to all members. Karen Williams provided an update of the Police and Fire Retirement System Board of Trustee election. The election will fill a Police Trustee position on the Board that would expire December 31, 2025. Nominating petitions would be due November 25, 2020. If required, a primary election would be held Thursday, December 10, 2020 and the general election would be held December 17, 2020. Attorney Castle provided a legal counsel report for the Employees' Retirement System Board. Attorney Castle presented the City of Lansing Employees Retirement System Authorized Signers Resolution for Board approval. He explained that the standing resolution is a best practice for fiduciaries of retirement systems. Joint Meeting November 10, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Six Attorney Castle added language that the chairperson would be provided advance written notice in all instances requiring signatures on behalf of the Board, even if the Board Chairperson was not available to sign. It was moved by Trustee Kraus and supported by Trustee Dedic to approve the Authorized Signers resolution. Adopted by the following roll call vote: Yes: Bahr, Dedic, Ebright, Kraus, Parker, Sanchez-Gazella, Schor. — 7. No: 0 Attorney Castle also reported that he contact Northern Trust regarding the Notice of Confidentiality required to be accepted in order to access the Northern Trust's annual Systems and Organizations Controls (SOC1) report. Attorney Castle indicated that he would review the document and provide a report to the Board. Attorney Castle also discussed arranging virtual training sessions in accordance with the Board's Trustee Training policy for new Employees' Retirement System trustees. Karen Williams updated the Employees' Retirement System Board that Mr. Bart Carrigan had been approved by City Council as the new Lansing resident trustee to the Board. Mr. Carrigan introduced himself and reviewed his experience and qualification as a trustee for various organization. He looked forward to working with the Employees' Retirement System Board. Karen Williams presented the 2021 meeting schedule for the Employees' Retirement System Board and the Police and Fire Retirement System Boards. Trustee Parker requested that members review the schedule and be prepared to amend where needed and approve at the next meeting. Karen Williams reviewed the Quarterly Expenses Reports for the Employees Retirement System and the Police and Fire Retirement System Boards. Ms. Michelle Porter-Ward provided an overview of the T. Rowe Price investment team. Trustee Wood inquired about the security system of T. Rowe Price investment team that are working remotely. MS. Porter-Ward explained their token system used for security and that members did not have the ability to print or download to personal computers. Joint Meeting November 10, 2020 Via Zoom meeting Tuesday, 8:30 a.m. Page Seven Mr. Ira Carnahan provided an update of the organizational structure and discussed the investment philosophy and structure of the T. Rowe Price team. Mr. Carnahan discussed positioning in the portfolio, value investing in the market place. He provided a review of the market environment, and the portfolio performance for the Employees' Retirement System and the Police and Fire Retirement System Board. Mr. Nathan Burk of Asset Consulting Group reviewed the Quarterly Performance reports for the 3rd quarter of 2020. Ms. Burk discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending September 30, 2020. Mr. Burk reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. Mr. Burk provided a review of the structure of both plans and discussed fees and asset allocation. Mr. Burk recommended redeeming quarterly cash flows through the remainder of the year. He indicated that ABS offshore was overvalued and monies could be redeemed at the end of the year. ABS would need a 45 day notice. Mr. Burk reviewed the Employees' Retirement System quarterly cash flow request for $6.1 million. Asset Consulting Group recommendation was to redeem $4 million from William Blair portfolio, $2.1 million from Western Asset portfolio. It was moved by Trustee Kraus and supported by Trustee Bahr to redeem from the Employees' Retirement System portfolio: $4,000,000, from ABS Global Long/Short Equity Fund and $2,100,000 from Western Asset for quarterly cash flow needs as recommended by Asset Consulting Group. Adopted by the following roll call vote: Yes: Bahr, Dedic, Ebright, Kraus, Parker, Sanchez-Gazella, Schor. — 7. No: 0 Mr. Burk reviewed the Police and Fire Retirement System quarterly cash flow request for $8.7 million. Asset Consulting Group recommendation was to redeem $3.7 million from the ABS Global Long/Short Equity portfolio and $5 million from Western Asset. It was moved by Trustee Chris Wilcox and supported by Trustee Wood to redeem from the Police and Fire Retirement System portfolio: $8,700,000 from ABS Global Long/Short Equity Fund, and $5,000,000 from Western Asset for quarterly cash flow needs as recommended by Asset Consulting Group. Adopted by the following vote: Lewandowsky, Rose, Schor, C. Wilcox, Wohlfert, Wood -7. Trustee Wood requested that the commendations be provided to the Retirement Boards in written form for the record. Mr. Burk discussed with the Board having interviews for Fixed Core —Bond Managers in December. Mr. Burk discussed Equity Long/Short options for the Employees Retirement System Board and the Police and Fire Retirement System Board. Mr. Tom Janish discussed the K2 Mauna Kea Access Platform and how it compared to the ABS portfolio. Mr. Janish explained that ABS was a fund of funds that was pre-packaged fund that allocated to several managers. Mr. Janish further explained the K2 Mauna Kea Access Platform was a custom portfolio of individual managers through a single provider. Mr. Burk reviewed the Employees' Retirement System and the Police and Fire Retirement System Board real estate portfolio. It was moved by Trustee Kraus and supported by Trustee Dedic to adjourn the Employees' Retirement System meeting. Adopted by the following vote: unanimous It was moved by Trustee Rose and supported by Trustee Wilcox to adjourn the Police and Fire Retirement System meeting. Adopted by the following vote; unanimous The Meeting adjourned at 11:44 a.m. Minutes approved on _�2/15/2020 Robert Widigan, Secretary Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees' Retirement System Police and Fire Retirement System CITY OF LANSING JOINT EMPLOYEES' RETIREMENT SYSTEM & POLICE AND FIRE RETIREMENT SYSTEM SPECIAL MEETING MINUTES Special Joint Meeting December 9, 2020 Via Zoom Tuesday, 8:30 a.m. The meeting was called to order at 8:32 a.m. A quorum of both Retirement Boards were present. Trustees present (meeting remotely): (ERS), Bahr (Lansing), Dedic (Laingsburg), Ebright (Lansing), Kirkland (Lansing) Kraus (Delta Township), Parker (Lansing), Sanchez-Gazella (Lansing), — 7. (Police & Fire), Kirkland (Lansing) Rose, 8:42 (Lansing), C. Wilcox (Haslett), R. Wilcox (Lansing), Wohlfert (Westphalia) —5. Excused: ERS, Schor, Spadafore Excused: Police & Fire, Lewandowsky, Schor, Wood Others present: Karen Williams, Human Resources Department; Robert Widigan, Finance Department; Aaron L. Castle, VanOverbeke, Michaud & Timmony, P.C.; Nathan Burk, Asset Consulting Group; Dan Tranchita, Mark Hawthorne, Baird Advisors, Bill O'Malley, Jim Gubitosi, Nils Hegstad, Income Research and Management; Justin Rucker, Blake Morris, Wally Theado, JP Morgan. It was moved by Trustee Kraus and supported by Trustee Kirkland to excuse Trustee Spadafore from the Employees' Retirement System Board meeting. Adopted by the following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella — 7. No: 0. Mr. Nathan Burk reviewed amendments to the Employees' Retirement System Board investment policy to include Core Fixed It was moved by Trustee Kraus and supported Trustee Kirkland to approve the Employees' Retirement Board Investment policy as amended. Adopted by the following vote: Yes: Bahr, Dedic, Ebright, Kirkland, Kraus, Parker, Sanchez-Gazella — 7. No: 0. December 9, 2020 Special Joint Meeting Tuesday, 8:30 a.m. Via Zoom Page Two Lansing, MI ments to the Police and Fire Retirement System Mr. Nathan Burk reviewed amend Board investment policy Mr . Dan Tranchita, Senior Portfolio Manager and Mr. Mcome thorn investmentarkManaservicesng Director provided their presentation of the Core Fixed offered b Baird Advisors. Mr. Tranchita and Mr. Hawthorne pome�n vestments. ed an .ew of the Y to the Core Fixed organization, a review of their approach Attorney Castle inquired if there would be a conflict ofCastle also inque daird's finance were division has worked with the City of Lansing. Attorney any current securities regulations investigations or issues. and there Mr. Tranchita and Mr. Hawtorne indicated that Baird has and M pTrae division indicated that is no collaboration between the division. Mr. Hawthorne there are no security regulation investigations or issues. Mr. Nils Hegstad, Senior Vice President and Client Portfoolliod Sea oer, Mr. Bill manaley, CEO and Co-CIO, and Mr. Jim Gubitosio, Co CIO provided their presentation of the Core Fixed Income investment an overviewoffered the Income Research and Management. Mr. Hegsta provided owned company, fee structure, current clients, and experience in the employee 's core fixed income strategy governmental sector. Mr. Gubitosi reviewed the company and asset allocation. AY ttorne Castle inquired if there were any ongoing regulator tin sservoes or l Cityitigati of that would affect Income Research & Managements Y to Lansing. were no investigation or litigation regarding the Income Mr. Gubitosi indicated that there Research and Management. Ms . Blake Morris, Vice President, pension client advisor Vice President Rucker,. Justin Executive their Director and Portfilio managers and Wally Theado, by JP presentation of the Core Fixed Income investments managementdteam. Morgan. Theado Morris provided an overview of the JP Morgan ma tment team. rev iewed asset management and the core bond income inve re bond strategyrand the Rucker provided information Blake discussed the fee steucture. portfolio performance. M ed if there were any ongoing regulatory investigations or litigation Attorney Castle inquired of Lansing. that would affect the JP Morgan's ability to service the City December 9, 2020 Special Joint Meeting Tuesday, 8:30 a.m. Via Zoom Page Three Lansing, MI separate indicated that there had been recent investigations, but it was a Ms. Morris division and would have no effect on Core Bond strategy. taking into account p r. Bart Carrigan provided public n comment regarding the Board ublic perception. pre vious investigation and litigation when making its decision, and the p Asset Consulting Group reviewed JP Morgan and did not hink the Mr. Burk stated that Mr. Burk provided issues would have any effect on the Core Fixed Income strategy. overview of the other companies, Baird and Income Research and Management. System Board and the Employees' Retirement System Retirement Sys The Police and Fire presentations. The Board discussed the Board discussed the three Core Fixed Income p of the investment. relative sizes of the firms, their sector allocations, liquidity x to retain Income Ryan Wilco It was moved by Trustee Rose and supported by Trustee ixed Income manager, subject to legal review Research & Management for its Core Reti Retirement System Board. I and negotiation for the police and Fire Wilcox, R. Wilcox, Wohlfert— 5 Adopted by the following vote: Yes: Kirkland, Rose, C. No. 0. s tee Kraus and supported by Trustee Sanchez-Gazella to retain It was moved by Tru and Management for its Core Fixed Income manager, subject to legs Income Research a ' Retirement System review and negotiation for the EmployeesEbri ht, Kirkland, Kraus, Parker, Adopted by the following vote: Yes. Bahr, Dedic, 9 Sanchez-Gazella — 7. No: 0. the Police Trustee C. Wilcox and supported Trustee Rose to approve It was moved by olic as amended. and Fire Retirement Board Investment p y Wilcox, R. Wilcox, Wohlfert— 5 Adopted by the following vote: : Yes: Kirkland, Rose, C. No. 0. It was moved by Tr C. Wilcox and supported by Trustee Rose to excuse Trustees Lewandowsky an d Wood from the Police and Fire Retirement System Board meeting. Adopted by the following vote: Yes: Kirkland, Rose, C. Wilcox, R. Wilcox, Wohlfert— 5 No. 0. It was moved by Trustee C. Wilcox and supported by Trustee Rose to adjourn the Police and Fire Retirement System Board meeting Adopted by the following: 5 -0. It was moved by Trustee Bahr and supported by Trustee Kraus to adjourn the Employees' Retirement System Board meeting. Adopted by the following vote; 7 -0. The Meeting adjourned at 11:32 p.m. Minutes approved on Robert Widigan, Secretary Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees' Retirement System Police and Fire Retirement System