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HomeMy WebLinkAbout2010 Police and Fire Retirement System Minutes FINAL OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting January 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:33 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood -7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill-Law_ .. Office (representing the Law Department); Chris Lake, Fire Department--' It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of December 15, 2009 with amendments. Adopted by the following vote: 7 - 0. Mr. Chris Lake provided comments regarding letters sent to duty disability applicants requesting information by the board. Mr. Lake raised concerns regarding the items listed in the letter, such as the need for all attendance reports and the request for all doctors seen by the applicant. Attorney Ken Lane clarified for the minutes that at December 15, 2009 meeting, the Board requested that the applicant obtain the personnel items listed in the letter from Clark Hill. Mr. Robert Hecksel requested that the minutes reflect that the Board was encouraged and has complied to move the duty disability process as as quickly as possible for the benefit of the applicants. Regular Meeting January 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 470. 3death(s), Richard Patterson, Fire, died 10/31/2009, age 85, beneficiary to receive 50%; Thomas A. Jensen, Fire, 11/11/2009, age 79, beneficiary to receive 50%; John Collins, Fire, 11/19/2009, age 70, beneficiary to receive 50%. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of December, 2009 amounted to $1,821 ,631.85. Total retirement checks printed for the P&F System: 634. Total retirement checks printed for both systems: 1431. Domestic relations order received: O. Domestic relations orders pending: O. Eligible domestic relations orders certified: O. Trustee Wood inquired how the checks are adjusted when a retiree dies. Karen Williams explained that the beneficiaries checks are adjusted when the Retirement Office is notified of deaths. It was moved by Trustee Fabus and supported by Trustee Kraus to approve the application for Regular Age and Service Retirement: Matthew Ramsey, Police Department, 25 years, age 48, effective January 15, 2010. Adopted by the following vote: 7 - O. Karen Williams reported to the Board that the Retirement Office has received 2009- F1020's information for the Medical Doctor. The Retirement Office has contacted the Doctor's Office for an appointment. Applicant 2009-F1124 has been scheduled to see the Medical Doctor. There were no requests for Non Duty Disability Retirements. There were no requests for Refund of Accumulated Contributions. Karen Williams reported that there was a MAPERS One-Day Seminar and requested that trustee contact her for registration. Regular Meeting January 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Hecksel and supported by Trustee Wood to nominate and elect Trustee St. Aubin and chairperson and Trustee Oleson as vice chair. Adopted by the following vote: 6 - 0. The following committee assignments were approved for calendar year 2010: Disability Subcommittee: Hecksel, Kraus, St. Aubin Investment Subcommittee: Benson, Hecksel, Kraus, Oleson, Wood Education Subcommittee: Fabus, Oleson, St. Aubin, Wood Special Projects Subcommittee: Kraus, Oleson, St. Aubin, Wood, Ex-Officio legal counsel Joint AdHoc Subcommittee on Health Care: Benson, Fabus, Hecksel, St. Aubin, Wood Trustee Kraus reported to the Board that the request for proposal needed to updated in Word format. Attorney Kenneth Lane updated the Board regarding Ms. Ursula Finney. Ms. Finney will allow the Board to put a lien on her property and cut her pension benefit in half. Attorney Lane provided an overview of the legal document regarding Ms. Finney. Attorney Lane has submitted the documents to the City Attorney's Office for review. The Board discussed the options reviewed by Attorney Lane. Attorney Kenneth Lane updated the Board regarding Private Advisors Investment. Attorney Lane reviewed the City Attorney's memo regarding concerns regarding the Hedge Fund Investment. Attorney Lane. explained that Private Advisors would send quarterly reports to Asset Consulting. Attorney Lane reviewed the quarterly redemption process for the hedge fund shares. Attorney Kenneth Lane distributed and reviewed a list of seven top fraud monitoring firms. Attorney Lane reviewed questions that the Board can ask to firms that are chosen for interviews. Attorney Lane would draft a letter to invite fraud monitoring firms for inteviews. Karen Williams distributed the actuary report and reported that Gabriel, Roeder and Smith will give its annual presentation. Regular Meeting January 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Kenneth Lane reviewed legislative memo regarding regulation IRS-401, drafted in 2007. The regulation would increase the retirement age to age 50 for members of the police and fire system. The regulation has been delayed until 2013. Ms. Marie Wolfe requested re-instatement of her duty disability pension. The Board agreed that Ms. Wolfe must first submit her 2009 certification for review before a decision is made. The Board agreed to refer the 2010 Retirement Conference to the Education subcommittee. Attorney Ken Lane reviewed the new trustee orientation policy with the Board members. Attorney Lane will provide a training session with Trustee Fabus. Karen Williams informed the Board that the ERS Board has invited members to hear Invesco give a presentation and provide an investment opportunity. It was moved by Trustee Oleson and supported by Trustee Benson to remove the Securities Lending Money Committee from the pending agenda. Adopted by the following vote: unanimously It was moved by Trustee Hecksel and supported by Trustee Oleson to remove the Line of Duty Death Benefits item from the pending Agenda. Adopted by the following vote: unanimously. Karen Williams reported to the Board that Gabriel, Roeder and Smith will be scheduled to attend the Joint Meeting. Karen Williams distributed and reviewed the Investment Report for December. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: unanimously The meeting adjourned at 10:25 a.m. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin Chairperson Police & Fire Retirement Board OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting February 16, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:34 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood', )7. Absent: Trustee Bernero ca Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark=Hill Law Office (representing the Law Department); David Hoffman, `.Gabrael, Roeder, Smith and Company. :r- It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of January 19, 2009 with amendments. Adopted by the following vote: 7 — 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 469. 0 . Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of January, 2010 amounted to $1,838,177.91. Total retirement checks printed for the P&F System: 634. Total retirement checks printed for both systems: 1434. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the application for Regular Age and Service Retirement: Timothy James, Fire Department, 25 year of service, age , effective February 1 , 2010. Jon B. Priebe, Fire Department, 25 years of service, age 48, effective February 15, 2010. Adopted by the following vote: 7 — 0. Regular Meeting February 16, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams reported that applicant 2009-F1020's was scheduled to see the Medical Doctor, March 10, 2010 in accordance with the Disability subcommittee's request. Trustee Hecksel reported to the Board that Disability subcommittee met and reviewed the Medical Doctor's report for applicant #2009-171124. The subcommittee has recommended to concur with the Medical Doctor's report and approve applicant's #2009-F1124's request for duty disability. Copies of the medical report was distributed for the board's review. It was moved by Trustee Hecksel and supported by Trustee Kraus to remove from pending case #2009-F1124, concur with the Medical Doctor's report and approve the request for Duty Disability of firefighter Lamarr Bowers. Adopted by the following vote: 7 -0 Copies of the medical report were return to the retirement analyst. There were no requests for Non Duty Disability Retirements. There were no requests for Refund of Accumulated Contributions. Trustee Hecksel provided an oral report regarding the MAPERS One Day Seminar. Attendees received an update of pending legislation in the Michigan Legislature regarding Public Act 314. Trustee Hecksel reported that other topics included alternative investments and hedge fund and the "basket clause." Trustee Oleson also reported that he attended the MAPERS One Day Seminar. Trustee Oleson discussed asset allocation and he reviewed the Michigan legislature procedure for approving bills. Trustee Oleson distributed a handout regarding all the pending amendments to Public Act 314. Attorney Ken Lane provided an update on HB 5323. Mr. David Hoffman, Gabriel, Roeder, Smith and Company presented the 2008 Actuarial Valuation for the City of Lansing Police and Fire Retirement System. Mr. Hoffman reviewed the plan assets, funded ratio and investment performance. Mr. Hoffman explained actuarial accrued liability. He provided valuation results, comments and conclusions. Mr. Hoffman provided a summary of the benefit provisions and valuation data. Regular Meeting February 16, 2010 Council Conference Room Tuesday, 8:30 a.m. loth Floor, City Hall Page Three Lansing, MI Trustee St. Aubin inquired regarding proposed legislation that would increase mandatory age of retirement to age 50. Mr. Hoffman indicated that it would affect the valuation for the Police and Fire Retirement System. Mr. Hoffman explained that the City's contribution is affected by the changes in the percentage of payroll. Gabriel, Roeder and Smith Company recommended a separate trust for health care. It was moved by Trustee Oleson and moved Trustee Hecksel to approve the transfer of $8,4777,953 Reserve for Retired Benefit Payments (RRBP) to the Reserve for Employer Contributions (RERC). Adopted by the following vote 7- 0. Trustee Carol Wood updated the Board the staff is completing the final draft for the Request for Proposal for the Actuary Bid Process. Attorney Ken Lane updated the Board that he provided Mrs. Ursula Finney with paperwork to place a lien on her property for repayment of pension benefits. Attorney Lane expected that signed paperwork would be returned by the end of the month. Attorney Lane distributed a draft for a new table of contents to reorganize the trustee handbook to provide a section for legal opinions. Attorney Lane provided an update of pending legislation regarding age restrictions for the police and fire plans. Trustee St. Aubin provided income verificaiton documentation from Ms. Marie Wolfe regarding her reequest for duty disability pension re-instatement. Trustee St. Aubin reported that Ms. Wolfe has been terminated from the prosecutor's office and no longer receives wages.- Trustee Kraus inquired if Ms. Wolfe is up-to- date with the amount she may have been overpaid. Karen Williams reported that Ms. Wolfe has not received a pension since 2006. It was moved by Trustee Hecksel and supported by Trustee Kraus that Ms. Wolfe request for pension re-instatement be approved with the condition that she must notify the board if she is gainfully employed. A friendly amendment was added that a letter be sent to Ms. Wolfe via certified mail indicating that the Board will take immediate action if Ms, Wolfe does not provide future income verification. Adopted by the following vote: 7— 0. The board recessed for the Joint meeting. The meeting adjourned at 12:07 p.m. Minutes approved on 31/1r 'a-o1'D *ICe brose, Secretary / Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System t i I OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting March 16, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:38 a.m. Present: Trustees Benson (8:45), Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Jerry Ambrose, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); John Jackson, Asset Consulting Group. It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of March 16, 2010. Adopted by the following vote: 7 — 0. Mr. Ambrose reported to the Board that the administration will be announcing the 2010 Retirement Incentive. Mr. Ambrose provided an overview of the Incentive. The program is cost neutral and is aimed at employees who are either already eligible to retire or close to retirement. Mr. Ambrose outlined the provisions of the incentive: no health care premium share, purchase of service credits, buy-back of furlough days. Mr. Ambrose also reviewed a suggestion to extend the number of years that an employee can purchase from 3 to 5 years of service credit. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 467. 3 death(s). Robert P. Moon, Fire, died 2/17/2010, age 80, no surviving beneficiary; Daryl Zuk, Police, died 2/28/2010, age 59,spouse to receive 50%; Ruth Wojtysiak, Police, died 3/3/2010, spouse of retiree. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of February, 2010 amounted to $1,853,346.40. Total retirement checks printed for the P&F System: 639. Total retirement checks printed for both systems: 1440. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. i Regular Meeting March 16, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Fabus and supported by Trustee Hecksel to approve the application for Regular Age and Service Retirement: Mark Alley, Police Department, 25 year of service, age, effective March 13, 2010. (Purchased 11 months of universal buy-in time) Adopted by the following vote: 7 — 0. It was moved by Trustee Fabus and supported by Trustee Hecksel to approve the application for Regular Age and Service Retirement: Mary Stevens, Police Department, 25 years of service, age 47, effective March 20, 2010. Adopted by the following vote: 7 — 0. Karen Williams reported that applicant 2009-F1020's was seen by Dr. Roth who will send a report with his initial findings and referral recommendation. There were no requests for Non Duty Disability Retirements. There were no requests for Refund of Accumulated Contributions. Karen Williams distributed information regarding MAPERS Spring Conference at Soaring Eagle in Mt. Pleasant, Michigan, May 23 — May 25. Ms. Williams also informed the Board of the Asset Consulting Group Michigan Trustee Educational Forum, April 14, 2010. The Board also discussed members attending the NCPERS Conference, October 9 - 14, 2010. The accounting department informed the Retirement Office that generally taxes for meals will not be reimbursed. Jerry Ambrose stated that he will talk with Tom Korkoske. Mr. Ambrose explained that the IRS has a general rule that government does not pay taxes, but it may not be practical. Mr. Ambrose believes that reimbursement could be worked out with accounting. Trustee St. Aubin expressed his opinion that no member of the Police and Fire Retirement Board should go to the International Foundation Meeting held in Hawaii this year. Trustee St. Aubin explained due to the tight economy and media scrutiny, trustees should not travel outside of the continental United States. The Board discussed Trustee St. Aubin's request and agreed with his opinion. Trustee Oleson and Trustee Hecksel requested permission to attend this year's NCPERS conference. Regular Meeting March 16, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Oleson and supported by Trustee Hecksel to permit two or more members to attend the NCPERS conference in the fall. Adopted by the following vote: 7 — 0. Trustee Hecksel also announce the Michigan Trustee Education Forum presented by Asset Consulting Group in Lansing, April 14, 2009. The subcommittee on Special Projects agreed to meet at prior to the next meeting to provide a final review of the Actuary Bid request for proposals. It was moved by Trustee Hecksel and supported by Trustee Oleson to proceed forward with setting up interviews. Adopted by the following vote: 7 — 0. The Joint Committee on Fraud Monitoring/Securities Litigation agreed to meet April 28th at 9:00 a.m. to set up interviews for firms. Attorney Lane will send out letters of invitation. Attorney Ken Lane provided an update on HB 5323. The bill was sent to the House Appropriations Committee. Attorney Ken Lane also distributed information to update the Trustee Handbook. Gabriel, Roeder, Smith and Company reviewed the 2008 Actuarial Valuation for the City of Lansing Police and Fire Retirement System at the February meeting. Attorney Ken Lane explained that it was the Board policy and in the Ordinance that the Police and Fire Retirement Board accept the actuary report each year. It was moved by Trustee Oleson and supported by Trustee Hecksel to receive the 2008 Actuarial Valuation for the City for Lansing Police and Fire Retirement System. Adopted by the following vote: 7 - 0. l Regular Meeting March 16, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Karen Williams distributed the annual city contribution report. The city made excess contributions to the retirement system and requested that the overage be returned. Thomas Korkoske provided the following information and requested a return of the excess contributions. Police and Fire Contribution 11/12/2009 $7,133,603.00 Actuarial Recommended Contribution $7,179,360.00 Less: FY 2009 excess contribution - 388,608.00 6,790,757.00 Excess Contributions P & F Retirement System 11/12/2009 342,846.00 It was moved by Trustee Hecksel and supported by Trustee Fabus to return the excess contributions of $342,846 to the City. A friendly amendment was offered by Trustee Wood that we refer express the contributions as an overage or excess contributions rather than amount owed to the City. A friendly amendment was offered by Trustee Kraus that the Police and Fire Retirement Board recognize the City contribution. Trustee Kraus reviewed the how the excess contributions were determined. Adopted by the following board: 7 — 0. Mr. John Jackson provided an update of the Private Advisory Investment. Due to a recent termination of 20% owner and researcher from Private Advisors, a payment settlement or litigation may be possible. Asset Consulting Group recommended that the Police and Fire Retirement System delay its decision to fund the investment at this time. Trustee Oleson recommended that the Board reconsider its options if Private Advisors has not settled with the former owner. Mr. John Jackson reviewed the Board's option and stated that the issue be reviewed in three months. It was moved by Trustee Hecksel and supported by Trustee Oleson to suspend funding the Private Advisor investment at this time until the July meeting. If Asset Consulting Group's recommendation has not changes, the Board will reconsider and review its options. Adopted by the following vote 7- 0. I I i John Jackson reviewed the March Investment report. The meeting adjourned at 9:25 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin Chairperson Police & Fire Retirement i OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting April 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:35 a.m. Present: Trustees Benson, Fabus (9:15), Hecksel, Kraus, Oleson, St. Aubin — 6. Absent: Trustee Bernero, Wood Others: Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill Law Office (representing the Law Department); Byran Epling, Lansing Fire Department. It was moved by Trustee Kraus and supported by Trustee Oleson to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of February 16, 2010 with amendments. Adopted by the following vote: 5 — 0. It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System and the Employees Retirement System Meeting of March 16, 2010. Adopted by the following vote: 5 - 0. Mr. Bryan Epling provided background and support of Request for Duty Disability applicants. Mr. Epling discussed his concerns regarding the Board's policy and procedures for requesting information. Mr. Epling provided feedback from an applicant who had a conversation with Dr. Roth. The applicant stated that he was told that Dr. Roth did not wish to review the wealth of information. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 465. 0 death(s). Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of March, 2010 amounted to $1,864,788.84. Total retirement checks i � I Regular Meeting April 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Secretary's Report—cont. printed for the P&F System: 639. Total retirement checks printed for both systems: 1440. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Oleson and supported by Trustee Hecksel to recess the meeting to allow the Disability subcommittee to discuss requests of duty and nonduty disability. Adopted by the following vote: 5 - 0. The Board recessed at 8:50 a.m. The Board resumed at 9:15 a.m. Mr. Fabus entered the meeting It was moved by Trustee Hecksel and supported by Trustee Oleson to move Case #2010-F0420 to Non-Duty Disability Retirement and to send the applicant to the Medical Director with all supporting documents pertinent to the injury supplied by the City and the applicant. Adopted by the following vote: 6 -0. It was moved by Trustee Hecksel and supported by Trustee Oleson to refer Case #2010-F0421 to the Medical Director with all supporting documents pertinent to the injury supplied by the City and the applicant. Adopted by the following vote: 6 — 0. It was moved by Trustee Hecksel and supported by Trustee Oleson to refer Case #2101-F0422 to the Medical Director with all supporting documents following the practice established by Case #2009-F1020. Adopted by the following vote: 6 -0. There were no Refunds of Accumulated Contributions. f f i Regular Meeting April 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse Trustee Wood from the Police and Fire Retirement System Board meeting. Adopted by the following vote: 6 — 0. Trustee Benson inquired regarding the Board's reaction to public comments stating that Dr. Roth had concerns regarding the wealth of information sent regarding disability applicants. Trustee St. Aubin reported to the Board that the disability subcommittee will contact Dr. Roth regarding the public comments and ask for his direction. Trustee Kraus added that the subcommittee will continue to send the items detailed in accordance with the policy and past practice until the subcommittee is instructed differently from Dr. Roth. Karen Williams updated members regarding the Spring MAPERS Conference. She informed trustees that she would have hotel registrations at the next meeting. Mr. Robert Hecksel reported to the Board regarding the Asset Consulting Group Michigan Trustee Educational Forum, April 14, 2010 at the Radisson Hotel. The Forum's topics included Capital Market Overview, Real Asset Strategies, Non- US Equity Opportunities, and Hedge Fund Strategies. Mr. Hecksel reported that trustees from throughout Michigan attended the forum. The form was interactive and participants were allowed to ask questions. Trustee Kraus discussed the handouts that were made available and encouraged members if they had any questions to contact Asset Consulting. Trustee Oleson reminded members that the handouts were sent to all members by email. Karen Williams updated the Police and Fire Retirement Board regarding the Travel Policy. Mr. Korkoske updated the staff regarding Retirement Board policy and stated that members will be reimbursed for taxes. Attorney Kenneth Lane updated the Board regarding pending legislation amendments to PA 314, requiring cities over 500,000 with pension systems to post expenditures on their website. Attorney Lane distributed a memo and also discussed pending legislation regarding distressed retirement system. The legislation would allow the distressed system to be transferred over to MERS. Trustee Attorney Lane discussed the criteria and the procedures how a system would be determined as distressed. I J I J I I I Regular Meeting April 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Oleson provided an Investment Subcommittee report regarding the BlackRock Replacement. The subcommittee met jointly with the Employees Retirement system investment subcommittee and chose three finalists for interviews, T Rowe Price Goup, Chicago Equity Partners, and Analytic Investors LLC. John Jackson will contact the Board regarding interview times. Karen Williams distributed the City Attorney's legal opinion regarding the calculation of Service Credit. The Board reviewed the pension and inquired how service credits are determined. Ms. Williams explained ten days of service and how monthly service credits are calculated. Trustee Kraus stated that the request for proposal for the Actuary Bid Process is ready to be distributed. The subcommittee will review the firms that respond and narrow the list to a group of finalist. Attorney Kenneth Lane scheduled three firms for Fraud Monitoring/Securities Litigation for interviews, April 28, 2010. Trustee Oleson requested that the Retirement Software discussion be placed on the agenda. Trustee Hecksel requested that the death check option be explored. The Board discussed researching other firms and companies that provide retirement software. Karen Williams distributed and reviewed the March Investment Report and quarterly Police and Fire Retirement System expense report. Karen Williams reported to the Board that Asset Consulting Group recommended liquidating $5,000,000 from Black Rock for the Quarterly Cash Flow Withdrawal. Ms. Williams also requested $5,000 for Administrative expenses from the Northern Trust Securities Lending Account. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the Quarterly Cash Flow withdrawal as recommended by Asset Consulting Group to move $5,000,000 from Black Rock to the Comerica account. Adopted by the following vote: 6 — 0. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the Quarterly Cash Flow withdrawal of $5,000 for Administrative Expenses from the Northern Trust Securities Lending Account. Adopted by the following vote: 6 — 0. 1 1 � I i i The meeting adjourned at 9:51 a.m. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System I OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting May 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:37 a.m. Present: Trustees Fabus, Hecksel, Kraus, Oleson, Wood — 5. Absent: Trustee Benson, Bernero, St. Aubin Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). Trustee Oleson presided over the meeting. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of April 20, 2010. Adopted by the following vote: 5 — 0. It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of April 28, 2010. Adopted by the following vote: 5 - 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total: Active membership: 465. 0 death(s). Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of April, 2010 amounted to $1,860,548.71. Total retirement checks printed for the P&F System: 638. Total retirement checks printed for both systems: 1449. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Regular Meeting May 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Fabus and supported by Trustee Hecksel to approve the application for Regular Age and Service Retirement: Jeffrey D. Hudak, Police Department, 25 year of service, age 50, effective May 15, 2010. Adopted by the following vote: 5 — 0. Karen Williams updated the Board regarding the Requests for Duty Disability. Ms. Williams spoke with Dr. Roth regarding the concerns about the information sent to the Medical Director for his review. Dr. Roth informed the Retirement Office that he will -review any submitted material that the Board deems appropriate. Trustee Hecksel inquired if Dr. Roth provided any indication that he wanted the Board's explanation of why certain materials was submitted to the medical director. Trustee Hecksel believed that it was a part of due diligence to provide an explanation of submitted material. Trustee Wood suggested that Dr. Roth attend the next meeting to discuss with the Board's policy and the thought process for submitting material to the medical director. It was moved by Trustee Wood and supported by Trustee Hecksel to have Dr. Roth attend the next meeting. Adopted by the following vote: 5 - 0. Trustee Hecksel requested an update regarding applicant 2009-F1020 because he was informed from the union that the applicant was having difficulty obtaining an appointment. Karen Williams spoke with the applicant and scheduled an appointment at the University of Michigan Anxiety Clinic to see a psychiatrist. Trustee Hecksel suggested contacting Michigan State University for recommendations of a psychiatrist that treat mental health issues. Karen Williams informed the Board that applicant 2009-F1020 has requested a copy of Dr. Roth's report. The Board agreed that releasing the medical director's evaluation prior to the Board determination was not appropriate. Trustee Wood suggested that the Board discuss with Dr. Roth, the rationale regarding the submitted material and suggestions for a local mental health doctor. Ms. Williams updated the Board that all applicants had been contacted by letter regarding submitting information for the medical director's review. There were no requests for Refund of Accumulated Contributions. � l Regular Meeting May 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Wood and supported by Trustee Hecksel to excuse Trustee Brad St. Aubin from the Police and Fire Retirement System meeting. Adopted by the following vote: 5 - 0. Karen Williams distributed information regarding MAPERS Spring Conference at Soaring Eagle in Mt. Pleasant, Michigan, May 23 — May 25. Trustee Kraus updated the Board regarding the Request for Proposal for Actuarial Services. The proposal was given to the Purchasing Division to distribute. Trustee Kraus was waiting for responses. Attorney Kenneth Lane updated the Board regarding the Fraud Monitoring/Securities Litigation firms. Attorney Lane has been reviewing the contract documents for the two selected firms. Attorney Lane advised the Board that the three firms would store the Board's income information sent by Asset Consulting Group electronically. Trustee Wood requested information regarding their security system and their liability if their computer system is hacked. It was moved by Trustee Wood and supported by Trustee Hecksel to have a written document regarding precautions, and security of the Fraud Monitoring Firms to protect the sensitive information provided by the Board. Adopted by the following vote: 5 - 0. Karen Williams updated the Board regarding the Income Verification for Duty Disability retirees. Ms. Williams reviewed the Board's Policy for reporting of income for the previous year. There were retirees who had not reported as of April 30, 2010. These retirees would receive a second letter and if they did not comply, their names would be brought before the Board for pension adjustments. Trustee Hecksel reported that the Investment Subcommittee met regarding replacement of BlackRock. The investment subcommittee interviewed several applicants and committee suggested TRowe Price to replace Black Rock. ... I l Regular Meeting May 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four It was moved by Trustee Hecksel and supported by Trustee Wood to select T Rowe Price to replace Black Rock Investment, pursuant to legal review of the contract documents. Adopted by the following vote: 5 - 0. The Retirement Office requested the Board's direction regarding a media contact for investment decision information. The Board agreed that Trustee Kraus would be the contact for media requests. Trustee Wood reported to the Board that actuarial evaluation would need to be completed regarding contract employees who return to work after leaving under the Targeted Retirement Incentive. These contract employees would have their pensions suspended. Attorney Kenneth Lane advised that under Public Act 314, a supplemental evaluation is needed when changes affect a retiree or the retirement system. Trustee Wood requested a timeline for the Qualified Plan Documents and the Ordinance review. Trustee Wood recommended that Clark Hill provide a clean copy of the Ordinance. Trustee Wood will meet with representatives from the Police and Fire Union, and the City Attorney's office to update the Ordinance. Karen Williams talked with Asset Consulting Group regarding Pension Software suggestions. Trustee Wood suggested members who are going to MAPERS to inquire with other municipalities regarding their software. The meeting adjourned at 10:01 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System I j Brad St. Aubin Chairperson Police & Fire Retirement OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting June 15, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:44 p.m Present: Trustees Benson, Fabus, Kraus, Oleson, St. Aubin, Wood Absent: Trustee Bernero, Hecksel Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department); Bryan Epling, Fire Department. It was moved by Trustee Oleson and supported by Trustee Fabus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of May 20, 2010 with amendments. Adopted by the following vote: 6 — 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 464. 3 death(s). Dennis Freeman, Fire, died March 25, 2010, age 63, spouse to receive 50%; Eugene Weaver, Fire, died March 27, 2010, age 94, no beneficiary; Helen Deason, Fire, died June 1, 2010, age 87, spouse of retiree. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of May, 2010 amounted to $1,871,460.38. Total retirement checks printed for the P&F System: 641. Total retirement checks printed for both systems: 1447. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Fabus and Trustee Kraus to approve the following applications for Regular Age & Service Retirement: Frank Koenigsknecht, Police Department, 28 years, 6 months of service, age 53, effective June 9, 2010. Joseph Dionise, Police Department, 25 years of service, age 49, effective June 15, 2010 (with purchase of 2 months of universal buy-in time) Regular Meeting June 15, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Application for Regular Age & Service Retirement. — cont. Andrew J. Lindeman, Police Department, 25 years of service, age 54, effective June 15, 2010 (with purchase of 1 month of universal buy-in time) Richard Meaton, Police Department, 25 years of service, age 47, effective June 15, 2010(with purchase of 6 months of universal buy-in time) Stephen Person, Police Department, 25 years of service, age 49, effective June 15, 2010 (with purchase of 4 months of universal buy-in time) Steven Relyea, Police Department, 25 years of service, age 56, effective June 15, 2010 (with purchase of 2 months of universal buy-in time) Scott Schuelke, Police Department, 25 years of service, age 47, effective June 15, 2010 (with purchase of 4 months of universal buy-in time) Verne A. Read, Jr., Police Department, 25 years of service, age 48, effective June 15, 2010 (with purchase of 7 months of universal buy-in time) Dennis Wirth, Police Department, 25 years of service, age 47, effective June 15, 2010 (with purchase of 2 months of universal buy-in time) Adopted by the following vote: 6 - 0 It was moved by Trustee Oleson and Trustee Wood to approve the following applications for Regular Age & Service Retirement: David T. Ness, Fire Department, 25 years, 8 months of service, age 47, effective May 8, 2010 Todd E. Burnett, Fire Department, 25 years of service, age 47, effective June 15, 2010 (with purchase of 2 months of universal buy-in time) Charles Fulger, Jr., Fire Department, 25 years of service, age 58, effective June 15, 2010 (with purchase of 11 months of universal buy-in time) David R. Ford, Fire Department, 25 years of service, age 46, effective June 22, 2010 Orval D. Huff, Jr., Fire Department, 25 years of service age 53, effective, June 24, 2010(with purchase of 2 months of universal buy-in time) Application for Regular Age & Service Retirement. — cont. Paul Smith, Fire Department, 25 years of service, age 45, effective June 24, 2010 (with purchase of 2 months of universal buy-in time) Peter L. Haueter, Fire Department, 25 years of service, age 49, effective June 26, 2010 (with purchase of 2 months of universal buy-in time) Daniel A. Perrone, Fire Department, 25 years of service, age 45, effective July 1, 2010 (with purchase of 1 year of universal buy-in time) Karen Williams updated the Board regarding the Requests for Duty Disability. Ms. Williams informed the Board that Case #2009-F1020 had been referred to Dr. Phil Margolis and the Retirement Office was waiting for his report. Case #2010- F0421 had been referred to Dr. Roth for evaluation. The Retirement Office was waiting for information from Case #2010-F0422 applicant. The subcommittee met regarding Case #2010-F0402. The subcommittee concurred with Dr. Roth's report and recommends that Mr. Bradley Clemens a non-duty disability It was moved by Trustee Kraus and supported by Trustee Oleson to grant Mr. Bradley Clemens a non-duty disability retirement. Trustee Wood inquired when the disability retirement would become effective. Ms. Williams informed the Board that Mr. Clemens' effective date would be June 16, 2010, the day after Board approval. Trustee Oleson expressed his concern and inquired to legal counsel regarding under what contract disability applicants will retire. The Board reviewed the Ordinance regarding duty disability and non-duty disability retirements. The Board discussed effective dates allowed by the Ordinance. Attorney Ken Lane explained an applicant's effective date can go back 6 months or prior to the date applicant received last pay check. Attorney Lane opined that the applicants can be considered under the former contract. Ms. Williams explained that many of the applicants receive wage continuation and back dating payment would require an adjustment to the pension. Adopted by the following vote: 6 — 0. There were no requests for refund of accumulated contributions. It was moved by Trustee Oleson and supported by Trustee Wood to excuse Trustee Hecksel from the Board meeting. Adopted by the following vote: 6 - 0. Mr. Bryan Epling spoke to the Board that Fire members who purchase military service time will receive health care for that time. Mr. Epling reviewed the Ordinance and requested that members purchasing military service credit under the retirement system be allowed to have health care. A City Attorney's legal opinion stated that time purchased does not count toward healthcare eligibility. Attorney Ken Lane informed the Board that he would speak with the City Attorney's Office for clarification. Trustee Kraus updated the Board that the deadline for the Actuary requests for proposals were due June 17. She will be working with the subcommittee to review the proposals and discuss scheduling interview times. Trustee Wood updated that Board regarding the Retiree Health Care Medicare supplement. Trustee Wood had been receiving calls and wanted to make the Board aware that the City has a new Medicare supplement provider for retirees. Attorney Ken Lane updated the Board regarding the security precautions in place by the Fraud Monitoring/Securities Lending that requested by Trustee Wood. Attorney Lane will provide the information to the City of Lansing IT department for review prior to the chairperson's signature. Attorney Ken Lane updated the Board that the Ordinance Review. Attorney Lane stated that the draft ordinance has the highlighted Collective Bargaining Agreements. Trustee Wood brought a concern from a retiree. The retiree requested that a retiree member be added to the membership of the Board. Attorney Ken Lane provided an update regarding his legal review of the TRowe Price offering documents to replace Black Rock as the enhanced index managers. Trustee St. Aubin requested that John Jackson also review the documents. Karen Williams updated the Board that the Private Advisors investment was suspended until July. Ms. Williams will have a list of Income verification adjustments for the July pension. Ms. Williams distributed and reviewed the May Investment report. The meeting adjourned at 9:44 am. I � i I OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting July 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:36 a.m. Present: Trustees Benson (8:45), Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood — 6. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Chris Lake, I.A.F.F Union; Dr. Victor Roth, Medical Director; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Kraus and supported by Trustee Hecksel to approve the Official Minutes of the Joint Employees Retirement System and Police and :Eire Retirement System Board Meeting of May 20, 2010. Adopted by the following vote: 6 — 0. It was moved by Trustee Kraus and supported by Trustee Hecksel to approve-the Official Minutes of the Police and Fire Retirement System Board Meeting 'of June 15, 2010. Adopted by the following vote: 6 - 0. Mr. Chris Lake, Lansing Firefighters vice president, IAFF 421, addressed the Police and Fire Retirement System Board regarding the requirements requested from disability applicants. Mr. Lake expressed concerns regarding some of items that he felt were unnecessary from the human resources personnel files that were included in the information forwarded to the medical director. Trustee St. Aubin requested that the Board move to Dr. Victor Roth, the Medical director. i Regular Meeting July 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Dr. Roth addressed the Board regarding the information forwarded to him from the Police and Fire Retirement Board for disability applicants. Dr. Roth indicated that he will review any documents sent by the Board. Dr. Roth stated that he would quickly sift through medically unnecessary documents such as high school diplomas. Trustee Hecksel discussed the intent regarding why the additional documents are requested and forwarded. Trustee Hecksel expressed his concerns that the retirement system be fiscally maintained and there be due diligence of all the information regarding a disability. Trustee Kraus discussed that the Board is responsible for establishing criteria for physical versus non-physical disabilities. Trustee Kraus explained there have been very few psychological disability requests. Trustee Kraus stated that the subcommittee would meet with Human Resources if they have problems with the items requested. However, no one from Human Resources had contacted the subcommittee or the Board. Trustee Wood recommended that the subcommittee meet with Human Resources to determine and resolve issues regarding the information requested for disability. Trustee Wood also suggested that Dr. Roth put together a list of information that he would like to review. Trustee Benson inquired if the American Psychological Association describes guidelines that the Board can follow. Dr. Roth explained that there are steps to follow, however, his disability examination is based on the history and information gathered from the applicant. Dr. Roth reviewed the differences between a psychiatrist report and occupation medical doctor report. Trustee Kraus further explained that all requests for disability are funneled through Dr. Roth. Applicants can see specialists as needed but the reports and determination come from Dr. Roth. Dr. Roth suggested that for mental health applicants, information could be sent to him for review. He can then determine if the applicant needs to see an independent mental health specialist prior to meeting with the Medical Director. Trustee Hecksel requested legal counsel's opinion regarding the discussion. Attorney Ken Lane opined that the discussion was appropriate and he agreed with the suggestion that the Medical Director provide a list to the subcommittee of what documents that he needs to review. 1 � Regular Meeting July 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Dr. Roth stated that he would review any information that the Board deems appropriate. Dr. Roth explained the more information that can be used regarding the disability, the better. Trustee Kraus suggested that the subcommittee meet with legal counsel and have communication with the Medical Director, instead of a list. Dr. Roth also informed the subcommittee that he had researched a list of local psychiatrist and would make contact with these doctors if the Board requested this. The subcommittee will take that information under consideration. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 19 retired. Total: Active membership: 446. 0 death(s). Refunds made since the last regular meeting amounted to $ 0. Retirement allowances paid for the month of June, 2010 amounted to $1,871,460.38. Total retirement checks printed for the P&F System: 640. Total retirement checks printed for both systems: 1451. Domestic relations order received: 0. Domestic relations orders pending: 2. Eligible domestic relations orders certified: 0. It was moved by Trustee Fabus and supported by Trustee Kraus to approve the application for Regular Age and Service Retirement: Bruce G. Ferguson, Police Department, 25 year of service, age 50, effective June 16, 2010. Adopted by the following vote: 6 — 0. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the application for Regular Age and Service Retirement: Joseph R. Walsdorf, Fire Department, 25 years of service, age 49, effective June 22, 2010 (with purchase of 2 years of military time, 7 months of universal buy-in time) Adopted by the following vote: 6 — 0. 1 j Regular Meeting July 2.0, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Karen Williams reported that the Retirement Office received the medical report from Dr. Phil Margolis regarding applicant #2009-F1020. It was moved by Trustee Hecksel and supported by Trustee Oleson to refer the medical report from Dr. Margolis regarding applicant #2009-F1020 to Dr. Roth, medical director. Adopted by the following vote: 6 — 0. Trustee Hecksel reported that the disability subcommittee received the Medical Director's report for Mr. Dan Hamel and concurs with Dr. Roth's recommendation. It was moved by Trustee Hecksel and supported by Trustee Oleson to approve Mr. Dan Hamel for duty disability. Adopted by the following vote: 6 — 0. Karen Williams updated the Board regarding applicant #2010-F0422. Ms. Williams received the information from the applicant and forwarded to Dr. Roth's office for scheduling. There were no requests for Refund of Accumulated Contributions. Karen Williams distributed information for Fall MAPERS, September 26 — 28 and for NCPERS in October. Ms. Williams requested members to complete their registration material and forward it to the Retirement Office. Trustee Kraus updated the Board regarding the Request for Proposal for Actuarial Services. The proposals have been received and the subcommittee will meet to develop criteria for evaluation. Attorney Kenneth Lane updated the Board regarding the Fraud Monitoring/Securities Litigation firms. Attorney Lane informed the Board that the City Attorney's Office has completed its review of the agreements for the Fraud Monitoring firms. Attorney Lane also submitted the internet security information regarding the Fraud Monitoring firms to Eric Tumbarella of IT for review. Attorney Lane is waiting for his response. i I I i Regular Meeting July 20, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Attorney Kenneth updated the Board regarding TRowe Price. Asset Consulting requested additional language regarding commission. TRowe added the language and provided a revised document. Attorney Lane has reviewed the new contract and has no issues. Attorney Lane is waiting to hear from Asset Consulting for their final review so that he may have it ready for the chairperson's signature. Karen Williams distributed the Gabriel, Roeder, Smith prepaid EDRO fees for 2010/2011. The new fees for certification are $600 and $850 for calculations. It was moved by Trustee Wood and supported by Trustee Fabus to approve the Gabriel Roeder Smith EDRO fees for 2010/2011. Adopted by the following vote: 6 — 0. Karen Williams distributed a memo from Asset Consulting Group recommending that the suspension of Private Advisor investment has been lifted. Asset Consulting Group has recommended that the investment be initially funded from $2.3 million from MD SASS. Attorney Ken Lane has just received the contract and he will review it to have it implemented by July 28. Karen Williams informed the Board that she had contacted Asset Consulting regarding their other clients who use Pension software in their office and/or their websites. Karen Williams reported to the Board that Mr. Robert Hansen and Mr. Manuel Little had income that combined with their pension was over the amount allowed by the ordinance. It was moved by Trustee and supported by Trustee to continue to suspend the pension of Mr. Hansen and adjust the pension of Mr. Manuel Little. Adopted by the following vote: 6 — 0. Karen Williams reported to the Board that she forwarded Trustee Oleson questions regarding Military Time versus Universal buy-in time and its cost to the pension system. j Trustee Oleson reiterated that he wanted to know if the purchase of military time versus universal buy-in time is cost neutral or if the purchase of military time has different criteria and costs to the retirement system. Karen Williams distributed and reviewed the Investment Monthly report for June. Trustee Wood reported that she had been contacted regarding investment in the film industry in Michigan and requested if the Board had any interest in hearing a presentation. The Board did not wish to hear the presentation. The meeting adjourned at 9:51 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin Chairperson Police & Fire Retirement System Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin Chairperson Police & Fire Retirement OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting August 17, 2010 ; Council Conference Room Tuesday, 8:30 :a.m._ 10th Floor, City Hall Lansing, MI The Board met in regular session and was called to order at 8:34 a.m. Present: Trustees Benson, Fabus (9:11), Hecksel, Kraus, Oleson, St: Aubih, Wood — 7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department), Mr. Richard Warner, Fire Department. It was moved by Trustee Oleson and supported by Trustee Kraus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of July 20, 2010. Adopted by the following vote: 5 — 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 1 retired. Total: Active membership: 445. 1 death(s), Elinor A. Compson, died 4/24/2010, age 76, spouse of Fire retiree. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of July, 2010 amounted to $1,871,460.38. Total retirement checks printed for the P&F System: 659. Total retirement checks printed for both systems: 1504. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 2. There were no applications for Regular Age & Service Retirement. Regular Meeting August 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two It was moved by Trustee Hecksel and supported by Trustee Oleson to recess the meeting to allow the disability subcommittee to meet. Adopted by the following vote: 6 - 0 The Board recessed at 8:37 a.m. It was moved by Trustee Oleson and supported by Trustee Hecksel to reconvene the Board meeting. Adopted by the following vote: 6 — 0. The Board reconvened at 8:45 a.m. It was moved by Trustee Hecksel and supported by Trustee Kraus to move Case #2009-F1020 from pending. Adopted by the following vote: 6 — 0. Trustee Hecksel reported to the Board that the subcommittee met, reviewed and conferred with the Medical Director report. The subcommittee recommended that the Board accept the Medical Director report that duty disability not be granted for Case #2009-F1020. Attorney Ken Lane opined that if the Board wished to discuss the report, the Board should go into closed session. It was moved by Trustee Wood and supported by Trustee Hecksel to go into closed session to discuss the medical director's report. Adopted by the following vote: 6-0 Yeas: Benson, Hecksel, Kraus, Oleson, St. Aubin, Wood. The Board went into closed session at 8:46 a.m. The Board reconvened at 8:54 a.m. Regular Meeting August 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Hecksel and supported by Trustee Kraus to concur with the Medical Director's report that a duty disability not be granted for Mr. Richard Warner. Adopted by the following vote: 6 — 0. Karen Williams updated the Board regarding applicant #2010-F0422. Ms. Williams has scheduled the applicant with Dr. Roth for a medical evaluation. There were no requests for Refund of Accumulated Contributions. It was moved by Trustee Hecksel and supported by Trustee Oleson to excuse Trustee Fabus from the Police and Fire Board meeting. Adopted by the following vote: 6 — 0. Karen Williams distributed information for Fall MAPERS, September 26 — 28 and for NCPERS in October. Ms. Williams requested members to complete their registration material and forward it to the Retirement Office. Trustee St. Aubin opened the floor to Mr. Richard Warner. Mr. Warner requested a copy of all of the doctor reports regarding his medical evaluation for duty disability. Attorney Ken Lane informed Mr. Warner that he needed to submit a freedom of information request. Trustee Kraus updated the Board regarding the Request for Proposal for Actuarial Services. The Special Projects subcommittee has developed a score sheet for the 4 proposals for actuary services, Gabriel, Roeder, Smith; EFI; Milman; and Rodwin. The Joint Special Projects subcommittee with the Employees Retirement Board subcommittee will meet to review the actuary firms. Trustee St. Aubin informed the Board that the Fraud Monitoring/Securities Lending Discussion would be moved to the Joint Meeting. Regular Meeting August 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Kenneth updated the Board regarding TRowe Price. Attorney Kenneth Lane stated that the contract have been executed and he provided the original contract to the Retirement Office for filing. Attorney Ken Lane distributed a copy of the updated ordinance and provided a review of the draft. Attorney Lane informed the Board that the revisions included a section for historical information, changes from policeman to police officer and updating the ordinance to the current collective bargaining agreements. Trustee Fabus arrived to the meeting. Trustee Oleson inquired if the unions were in agreement with the current draft and what was the next step in the process. Trustee St. Aubin stated that the unions had reviewed the draft and that the draft ordinance will be voted upon by the Board. Trustee St. Aubin recommended that trustees review the ordinance and the Board can discuss and vote on the issue next month. Trustee Wood explained the resident trustee position and requested that members review the section regarding the requirement that the trustee be a free holder of property in the city on page 4. Attorney Kenneth updated the Board regarding Private Advisors. Attorney Kenneth Lane stated that the contract have been executed and he provided the original contract to the Retirement Office for filing. Karen Williams informed the Board that Asset Consulting contacted their client and did not have any that used Pension software. Karen Williams will continue checking other sources from pension software for the Retirement Office and website. Trustee Kraus suggested that the Board consider a comprehensive program that would manage the retirement membership in a database. Karen Williams reported to the Board that she forwarded Trustee Oleson questions regarding Military Time versus Universal buy-in time and its cost to the pension system to Gabriel, Roeder, Smith and Company. Once a response has been received, Ms. Williams will distribute to the trustees for review and discussion at next month's meeting. Karen Williams distributed and reviewed the Investment Monthly report for July. It was moved by Trustee Hecksel and supported by Trustee Oleson to adjourn the Police and Fire Retirement Meeting. Adopted by the following vote: 7 — 0. The meeting adjourned at 9:21 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin Chairperson Police & Fire Retirement System i OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting September 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in special session and was called to order at 8:37 a.m. Present: Trustees Fabus, Hecksel, Kraus, Oleson, Wood — 5. Absent: Trustee Bernero, Benson, St. Aubin Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department), Mr. Bryan Epling, Chris Lake, IAFF. It was moved by Trustee Wood and supported by Trustee Kraus to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of August 17, 2010. Adopted by the following vote: 5 — 0. It was moved by Trustee Wood and supported by Trustee Fabus to approve the Official Minutes of the Joint Employees Retirement System and the Police and Fire Retirement System Board Meeting of August 17, 2010. Adopted by the following vote: 5- 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 444. 0 death(s). Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of August, 2010 amounted to $1,977,882.65. Total retirement checks printed for the P&F System: 660. Total retirement checks printed for both systems: 1506. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 2. Regular Meeting September 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no applications for Regular Age & Service Retirement. Karen Williams updated the Board regarding the requests for duty disability. Ms. Williams informed the Board that Dr. Roth report and referral for Case #2010- F0422. The applicant will be referred to Dr. Margolis for evaluation. The Board inquired if a special meeting could be held between regular meeting to decide and vote on duty disability cases. Ms. Williams reported that the Board has called a special meeting in the past to vote on duty disability cases. Ms. Williams informed the Board that a formal request has not received from Case #2010-F0817. The subcommittee requested that Case be tabled until the applicant submitted a formal request. Trustee Wood expressed concern that the request should not be under consideration until a formal proper request has been received. It was moved by Trustee Wood and supported by Trustee Kraus to take Case #2010-F0817 off the table. Adopted by the following vote: 5 — 0. It was moved by Trustee Wood and supported by Trustee Hecksel to remove Case #2010-F0817 from the agenda and send a letter to the applicant that the request was not in proper form. Adopted by the following vote: 5 — 0. Trustee Oleson reported to the Board that Mr. Richard Warner asked if the Reciprocal Retirement Act can be applied in his case to request a non-duty disability. Attorney Ken Lane was asked to review the request and opined that the Reciprocal Retirement Act can only be used for regular age and service retirement. It can not be used for disability retirement. Regular Meeting September 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Trustee Hecksel requested an explanation of the Reciprocal Retirement Act. Attorney Ken Lane and Trustee Kraus explained the Reciprocal Retirement Act was enacted to provide for the preservation and continuity of retirement system service credit for public employees who transfer their employment between units of governments in Michigan. An eligible person may be combined credited service for regular age and service retirements. It was moved by Trustee Fabus and supported by Trustee Hecksel to excuse Trustee St. Aubin from the Police and Fire Board meeting for training. Trustee Wood added a friendly amendment to also excuse Trustee Benson from the meeting. Adopted by the following vote: 6 — 0. Karen Williams distributed registration confirmation for Fall MAPERS, September 26 — 28 and for NCPERS in October. Ms. Williams requested members to complete present their State withholding exemption form when checking out at Boyne Mountain. Mr. Bryan Epling, IAFF, responded to the Board regarding Case #2010-F0817. Mr. Epling stated that the union is following up to get an appropriate request from the applicant. Mr. Epling informed the Board that Mr. Richard Warner requested a copy of his medical report and submitted a Freedom of Information Act. Mr. Warner's Freedom of Information Act was denied by the City Attorney's Office. Attorney Ken Lane stated that he was informed of the denial and that Mr. Warner had ten days to appeal. Trustee Wood requested that Attorney Lane inquire to the City Attorney's office regarding the denial. Trustee Kraus reported to the Board that the subcommittee is planning to meet regarding the Actuary Bid Process to review the submission. t Regular Meeting September 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Attorney Ken Lane reported that the Fraud Monitoring firms selected by the Board have been added to the City Council approved list. The City Attorney also included Barak Rosas firm, but will not compel the Retirement Board to use the firm. Attorney Lane will have Trustee Oleson sign the contract agreements. Trustee Wood updated the Board regarding the status of the Ordinance Draft. Trustee Wood explained the description of the citizen representative trustee and the application of the "land freeholder" language. Trustee Wood described the residency options: should the citizen trustee own property in the City of Lansing or can the trustee rent in the city and serve on the Board. The subcommittee recommended that the Board decide regarding the residency option. It was moved by Trustee Hecksel and supported by Trustee Wood to strike the language that the citizen representative is a land freeholder language. Adopted by the following vote: 5 -0. It was moved by Trustee Kraus and supported by Trustee Hecksel to forward the amended Ordinance to the City Attorney's office for review, with the Board's support, and is aware that there are adjustments to language in the Ordinance to be made. Adopted by the following vote: 5 — 0. Trustee Oleson asked Attorney Ken Lane to review the Internal Revenue Service guidelines to determine if a member can purchase military time with deferred compensation money. A member received an actuary evaluation and has a limited amount of time for the purchase of service credits, and wishes to use the deferred compensation account. Attorney Jack Roberts opined that a member could not use his deferred compensation money to purchase military time. Ms. Williams reviewed past official minutes to approve the purchase of military time. The minutes indicated that the administration would be responsible for processing the purchase. The minutes do not specifically indicate what types of funds are accepted. Regular Meeting September 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Kraus clarified that the Board does not indicate what funding sources can be used. Trustee Kraus suggested that the member contact the deferred compensation board. Trustee Kraus indicated that if something is done wrong within the 457 plan, it becomes immediately taxable to all members of the plan. It was moved by Trustee Wood and supported by Trustee Kraus to have legal counsel develop a policy to review IRS guidelines when members wish to purchase time to determine if changes in the law would create an adverse affect to the retirement plans. Adopted by the following vote: 5 - 0 Karen Williams distributed a draft posting for the Police Trustee Election for Thomas Fabus, who is completing the Bruce Holliday's term. Karen Williams reviewed the election rules. It was moved by Trustee Wood and supported Hecksel to approve the Police Trustee Election Posting, as submitted. Adopted by the following vote: 5 - 0 It was moved by Trustee Wood and supported Hecksel to appoint the chair and vice chair as electors to count ballots. Adopted by the following vote: 5 — 0. Karen Williams contact the City of Ann Arbor regarding Pension Software and Website. Ms. Williams has also contacted Pension Gold and a few different vendors. Most vendors could not provide a price until it had a determination of what the Board required. Trustee Fabus inquired a small information packet regarding the Police and Fire Retirement System. Karen Williams informed the Board that the former finance director provided booklets to the Police and Fire Retirement System. Trustee Fabus requested a small guideline be made available describing how things work within the Police and Fire System, in a question and answer format. Regular Meeting September 17, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Trustee Wood suggested that Special Projects subcommittee review the booklets that were provided to the Police and Fire Retirement System. The Board suggested that Attorney Ken Lane review the booklets and update the information. Attorney Ken Lane reported to the Police and Fire Board that the City Attorney has joined a lawsuit regarding several pharmacies. Some pharmacies have overcharged, violating state law. The Board does have holding in some of the pharmacies. Trustee Wood expressed concerns that the Board has holdings in pharmacies that are being sued by the City and have a negative impact on stocks. Trustee Wood suggested a policy that the Board is contacted when the City is pursuing a lawsuit that would effect Board investments. Attorney Lane opined that the Board did not have any prior knowledge that the lawsuit would be filed and therefore, trustees did not violate its fiduciary responsibility. Attorney Lane explained that Asset Consulting Group did review the Board's holding and reported to the City Attorney that the amount of exposure was minimal. It was moved by Trustee Wood and supported by Trustee Hecksel Trustee Wood suggested that legal counsel develop a policy that the Board is notified when the City enters a lawsuit that would effect the Board investments. Adopted by the following vote: 5 -0. Karen Williams distributed and reviewed the Securities Lending and Investment Monthly report for August. It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the Police and Fire Retirement Meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 10:14 am. i Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Robert Oleson, Vice Chairperson Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in special session and was called to order at 8:36 a.m. Present: Trustees Benson, Fabus (8:47), Hecksel, Kraus, Oleson, Wood,'.St. Aubin — 7. Absent: Trustee Bernero Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department), Mr. Bryan Epling, Chris Lake, IAFF. It was moved by Trustee Kraus and supported by Trustee Kraus to appr.ove-the Official Minutes of the Police and Fire Retirement System Board Meeting of August 17, 2010. Adopted by the following vote: 6 — 0. Mr. Brian Epling, IAFF gave public comments for items on the agenda. Mr. Epling informed the Police and Fire Board that Mr. Richard Warner received his medical reports from his attorney and provided Mr. Epling with a copy. Mr. Epling requested that the Board revisit Mr. Warner's medical reports and refer him again to the Medical Director. Mr. Brian Epling, IAFF also provided public comments regarding the purchase of military time with deferred compensation for active members, during their years of service, not just at separation from the Police and Fire Retirement System. Mr. Epling stated that the IAFF Union is also researching whether the purchase of military time can be made for in-service members. Trustee St. Aubin noted for the minutes that he received a copy of Mr. Warner's letter from the Retirement Office and the letter would be discussed under Request for Duty Disability. Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 443. 1 death(s). Phyllis Covey, Police, died 9/9/2010, age 68, spouse of retiree. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of September, 2010 amounted to $1,971,390.11. Total retirement checks printed for the P&F System: 662. Total retirement checks printed for both systems: 1507. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. There were no applications for Regular Age & Service Retirement. Karen Williams updated the Board regarding the requests for duty disability. Ms. Williams informed the Board the applicant #2010-170422 has seen Dr. Margolis. Dr. Margolis will provide his evaluation to the Board. Trustee Hecksel submitted letters of support for applicant #2010-F0422 to be forwarded to the medical director for review. Trustee Hecksel requested if the report from Dr. Margolis could be expedited for the applicant. The Retirement Office will contact Dr. Margolis regarding a timeframe. Ms. Williams reported to the Board that Chief Cochran has submitted a request for Duty Disability for Case #2010-F1019. It was moved by Trustee Oleson and supported by Trustee Fabus to refer Case #2010-F1019 to the Medical Director. Adopted by the following vote: 7 — 0. The Board acknowledged receipt of Mr. Richard Warner's letter dated October 5, 2010. Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Oleson and supported by Trustee Hecksel to move to close session to consider and review a confidential legal opinion. Roll Call Vote: 7 — 0. Yeas: Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood. No: None The Board was in close session at 8:49 a.m. The Board resumed open session at 10:08 Trustee Kraus inquired to legal counsel, Does the Board have the legal ground to re-consider its vote on a duty disability decision or re-open a case that has been closed. Attorney Lane opined that the Board does not have the legal grounds to re-visit the vote. Pertaining to Mr. Warner, the Board voted on August 17, 2010 to deny duty disability that was based on the recommendation from the Medical Director and the disability subcommittee. There are no legal grounds to reconsider that vote. Trustee Hecksel inquired to legal counsel, If the member who was denied for duty disability and has new information for consideration, can the applicant re-apply for duty disability. Attorney Lane opined that the member can re-apply for disability with new information. Attorney Lane further opined that there is nothing that would preclude a member from re-applying without new information. However, it was suggested that if they did not have new information, it is likely they may receive the same result. There were no requests for non-duty disability retirement. There were no requests for refund of accumulated contributions. Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee Hecksel provided a report for the MAPERS Fall Conference. Trustee Hecksel overviewed some of the sessions regarding outlook for financial markets, opportunities in emerging markets, active and passive management of funds investments, future Michigan business economic climate and networking opportunities. Trustee Hecksel stated that it was a good conference and very informative. Trustee Oleson discussed MAPERS sessions regarding topics that included election predictions, policies and procedure updates. Trustee Oleson provided a report of the NCPERS Fall Conference. Trustee Oleson reviewed session of economic forecasts, handling and reducing stress, securities fraud monitoring, GASB information and communication with the public. Trustee Hecksel discussed a municipality that was underfunded and would run out of money in 14 years. Trustee Hecksel discussed session on DROP programs, and management of workplace stress and media communication. Trustee Kraus further discussed Omaha, Nebraska and the hostile relationship between board members, and having and defining a core media message. Trustee St. Aubin added that he was able to network with many representatives of other retirement plans and found that Lansing Police and Fire fund was well-funded. Attorney Kenneth Lane reported that he also attended the MAPERS Conference and he distributed a legislative update for amendments to Public Act 314. Attorney Lane reviewed HB 5323, HB 5982 and SB 1240. Attorney Lane also noted that the contract with Milberg had been signed and provided to the Retirement Office. The Retirement Office will contact Northern Trust for Milberg to receive account access. Attorney Lane mailed the contract to the Steins to be processed. Karen Williams requested approval from the Board to pay membership dues for NCPERS ($150), International Foundation ($370), MAPERS ($50). It was moved by Trustee Wood and supported by Trustee Hecksel to pay membership dues for NCPERS ($150), International Foundation ($370), MAPERS ($50) from the Securities Lending funds. Adopted by the following vote: 7 — 0 Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five Trustee Oleson requested permission to attend the National Conference for NCPERS to be held in May. Permission was granted by Trustee St. Aubin. Mr. Bryan Epling stated that he truly appreciated the Trustees' time, effort and travel to benefit the membership of the Police and Fire System. Attorney Ken Lane distributed the Board's new litigation policy. The policy would provide a procedure to notify the Board of litigation that potentially impacts security holdings of the retirement system. Attorney Lane also reported to the Board that he contacted John Jackson, Asset Consulting Group regarding the pending City pharmacy lawsuit. Attorney Lane asked Mr. Jackson if there were any concerns regarding the Board's investment. Mr. Jackson did not indicate any concerns. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the Litigation Policy, and that this policy will supercede any litigation policies of the Employees Retirement System. Adopted by the following vote: 7 — 0. Attorney Kenneth Lane distributed the Board's new service credit and military time purchase review policy. The policy would provide a procedure for the review of ordinance provisions and state and federal regulations that pertain to a member's request to purchase service credits or military time. Attorney Lane opined that the City Attorney's Office has reviewed the IRS Regulation and currently there is no provision to prohibit in-service purchase of time with deferred compensation funds. However, the Police and Fire Retirement System does not allow this type of purchase. Trustee Oleson had concerns regarding the City Attorney's opinion of in-service purchase of military time. Trustee Kraus stated that she would not vote for any decision that would make the Deferred Compensation Plan taxable. Trustee Kraus suggested that the Board ask the City Attorney to have Attorney Sherry Stein review IRS guidelines and the Police and Fire Plan to determine if a member can use deferred compensation to purchase defined benefit service credits while in-service. Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Trustee Oleson requested that the service credit and military time purchase review policy be placed on next month's agenda for further discussion. Trustee Oleson reviewed the MAPERS session that described the outline of policies and procedures presented by Michael VanOverbeke. It was moved by Trustee Oleson and supported by Trustee Hecksel to have legal counsel review the MAPERS presentation regarding Board policies and determine what policies that the Police and Fire Retirement System should have. Adopted by the following vote: 7 — 0. Attorney Ken Lane reviewed the Police and Fire Retirement Booklet. Attorney Lane stated that the majority of information was current. Attorney Lane said only the Trustee Board information needed to be updated. Attorney Lane suggested that the booklet be sent to a subcommittee to be reviewed. The Retirement Office reported a pension adjustment for Mrs. Julia Hillery's duty disability. Ms. Hilliery's pension added to her reported income exceeded the current rate of compensation by $27,325.66. The Board reviewed Mrs. Hillery's Certification of Annual Earnings Received by Disability Retirees for Year Ending December 31, 2009. The Board approved adjustment for October pension. Karen Williams discussed an email from John Jackson, Asset Consulting Group to have a due diligence trip to New York. Mr. Jackson suggested that members leave for New York, Tuesday, December 7 to meet with MD Sass and Milberg, Weiss in the afternoon. Trustees would meet with ING Clarion and Artio Investments on Wednesday, December 8., then leave for Lansing. Trustee St. Aubin approved all members who wanted to attend the due diligence trip. Trustee St. Aubin told members who were interested to email their interest to himself or Trustee Oleson. Trustee Oleson reported to the Board that he received an email regarding a question of his Eligible Domestic Relations Order (EDRO). The member wanted to know if the alternate payee died, would the member receive that portion of his pension. Karen Williams, the Retirement Analyst and Attorney Ken Lane explained that the member should review his EDRO and discuss his questions Regular Meeting October 19, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Seven with his attorney. Ms Williams explained that members generally receive a Model EDRO from Gabriel, Roeder and Smith (GRS) for their attorneys to follow. Once the EDRO has been signed and processed by the court, the EDRO is forwarded to GRS with the appropriate fees for certification. Trustee Kraus expressed concern regarding HB5619, mandating investment of funds with a minority-owned firms. Trustee Wood stated that the House Bill violated state law. Trustee Kraus updated the Board that the proposals were ready for review by the subcommittee. Karen E. Williams updated the Board that there was one nominating petition returned by Mr. Thomas Fabus. Karen Williams distributed a list of vendors that provide pension software for the retirement system and website. Ms. Williams explained the retirement system does not have a database or calculation software. Ms. Williams explained that the current payroll system does not track service credits. As the current systems get older, data may be lost. Trustee Kraus advocated that the Board look at comprehensive database where the Retirement System has one source of information. Trustee Kraus recommended to the Board that this project would be a large undertaking and additional staff may be needed. Trustee Kraus suggested that the City's IT Department would also need to be involved because the new system would need to be placed on the City's hardware and to migrate the old data to a new system. It was moved by Trustee Wood and supported by Trustee Oleson suggested that the Retirement Analyst narrow the list and put together recommendations for a comprehensive database and to contact Eric Tumbarella to have someone from the City's IT Department to assist the project. Mr. Benson expressed concern of a possible conflict of interest if Gabriel, Roeder, Smith is one of the potential vendors. Adopted by the following vote: 7 - 0 Trustee Oleson requested that the Board approve the extra costs of meals at the NCPERS Conference. It was move by Trustee Oleson and supported by Trustee Hecksel to approve the additional costs of meals with the appropriate receipts at the 2010 Fall NCPERS Conference. Karen Williams distributed and reviewed the Securities Lending and Investment Monthly report for August. Trustee Kraus inquired if Northpointe and Clarion are on the "watch list" by Asset Consulting Group. Trustee Oleson requested that John Jackson review the underperFormance of Northpointe and Clarion. Trustee Wood requested that the Retirement Office contact the City's IT Department regarding ways to safeguarding old computer data until the Board can complete its project on obtaining a comprehensive data for the Retirement system. It was moved by Trustee Hecksel and supported by Trustee Fabus to adjourn the Police and Fire Retirement Meeting. Adopted by the following vote: 5 — 0. The meeting adjourned at 10:14 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin, Vice Chairperson Police & Fire Retirement System CITY OF LANSING POLICE & FIRE and ERS RETIREMENT SYSTEM OFFICIAL MINUTES -Revised Joint Meeting November 18, 2010 Council Conference Room Thursday„9,,-15 a.m. 10th Floor City Hall Lansing, MI :a �% The meeting was called to order at 9:26 a.m. n A quorum of the Police and Fire Retirement System Board was preseini �',he Employees Retirement System Board did not have an quorum. i� Trustees present: (ERS), Kraus, Parker, Rose, Wood — 4. (Police & Fire), Fabus, Kraus, Oleson, St. Aubin, Wood — 5. Other presents: John Jackson, Asset Consulting Group, Inc. (ACG); Karen Williams; Attorney Kenneth Lane, Clark Hill Law Office (representing the City Attorney's Office); Mr. Cark Wilk and Mr. Kenneth Hudson, Northpointe Capital Investments; Matthew G. Bevin, Adam I. Friedman, Integrity Investments. Mr. Matthew G. Bevin, Chief Executive Officer & Principal and Mr. Adam I Friedman, Senior Portfolio Manager& Principal provided an Investment Review for the City of Lansing Employees' Retirement System and the Police and Fire Retirement System. Mr. Bevin and Mr. Friedman gave an account review, performance update, summary of investment objective and guidelines, investment philosophy, stock selection, and risk control of the Police and Fire and the Employees Retirement System portfolios. Mr. Carl Wilk, Portfolio Manager & Partner and Mr. Kenneth Hudson, VP, Institutional Sales & Partner provided an Investment Review for the City of Lansing Employees Retirement System and the Police and Fire Retirement System. Mr. Wilk and Mr. Hudson's presentation included the investment firm overview, portfolio review, the investment process and portfolio outlook the City of Lansing Employees Retirement System and the Police and Fire Retirement System. Mr. John Jackson, Asset Consulting Group provided an overview of Northpointe and Integrity Investment companies. Mr. Jackson provided an in-depth review of NorthPointe Capital and its concerns with the performance. Mr. Jackson discussed the firm details, investment strategy and provided a recommendation to the Police and Fire Retirement System and the Employees Retirement System to begin a search for the replacement of NorthPointe. Joint Meeting November 18, 2010 Council Conference Room Thursday, 9:15 a.m. 10th Floor City Hall Lansing, MI It was moved by Trustee Wood and supported by Trustee Kraus to begin the search for the replacement of the Small/Mid Cap Investment Manager, Northpointe. Adopted by the following vote: 5 — 0 Mr. John Jackson distributed a memo from Asset Consulting Group and reviewed the Quarterly Cash Flow Recommendation to provide $5,000,000 to the Police and Fire Retirement System Board. It was moved by Trustee Kraus and supported Trustee Oleson to redeem $2,500,000 from Northern Trust S&P Index Fund — Non Lending and $2,500,000 from Integrity Investments for Quarterly Cash Flow to the Comerica account, based on the written recommendation from Asset Consulting Group. Adopted by the following vote: 5 - 0. It was moved by Trustee Kraus and supported by Trustee Wood to redeem $6,000 from Northern Trust Security Lending to Comerica for administrative expenses. Adopted by the following vote: 5 — 0. Trustee St. Aubin reported to the Police and Fire Retirement System that he received notification of the City's pension contribution of $7,900,000. It was moved by Trustee Wood and supported by Trustee Oleson to recognize the City's Pension contribution of$7,900,000 to the Police and Fire Retirement System. Adopted by the following vote: 5 — 0. Mr. John Jackson distributed an agenda for the Joint Boards Due Diligence visit to New York. Trustees were scheduled to visit Milberg and M.D. Sass on Tuesday, December 7, 2010 and ING Clarion and Artio Global Investors on Wednesday, December 8, 2010. Mr. John Jackson provided a quarterly performance review of the Police and Fire Retirement and the Employees Retirement System portfolios. Mr. Johnson reviewed the investment market environment, an analysis of real estate, equities and fixed assets. The meeting adjourned at 11:55 a.m. Minutes approved on /.� r��2� `I Jerky brose, Secretary Scott Bedic, Chairperson Brad St. Aubin, Chairperson Employees Retirement System Police & Fire Retirement System OFFICIAL PROCEEDINGS OF THE BOARD F TRUSTEES CITY OF LANSING - POLICE AND FIRE RETIREMENT SYSTEM { Regular Meeting December 14, 201 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI The Board met in special session and was called to order at 8:35 a.m. Present: Trustees Fabus, Hecksel, Oleson, St. Aubin, Wood — 5. Absent: Trustee Benson, Bernero, Kraus Others: Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department), Mr. Richard Warner. It was moved by Trustee Wood and supported by Trustee Hecksel to approve the _ Official Minutes of the Police and Fire Retirement System Board Meeting of October 19, 2010 with amendments. - Adopted by the following vote: 5 — 0. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 443. 2 death(s). Danny E. King, Police, died 10/24/2010, age 57, beneficiary to receive 50%; Kenneth Ruppert, Police, died 10/26/2010, age 63, spouse to receive 50%. Refunds made since the last regular meeting amounted to $ 0.00. Retirement allowances paid for the month of October, 2010 amounted to $1,967,307.47. Total retirement checks printed for the P&F System: 661. Total retirement checks printed for both systems: 1505. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. Trustee St. Aubin requested that if trustees are aware of retiree deaths, please forward that information to the retirement office. There were no applications for Regular Age & Service Retirement. Regular Meeting December 14, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two Karen Williams updated the Board regarding the requests for duty disability. Ms. Williams informed the Board that the Case #2010-F0422 applicant has been rescheduled for his testing referred by Dr. Margolis for evaluation. Case #2010-F1019 applicant has been contact by the Retirement Office. The applicant is gathering his information requested by the Board to be referred to Dr. Roth. Karen Williams informed the Board regarding Case #2010-F1109 who has requested a duty disability retirement. Case #2010-F1109 was referred to the disability subcommittee. Karen Williams informed the Board regarding Case #2010-F1110 who has requested a duty disability retirement. Case #2010-F1110 was referred to the disability subcommittee. It was moved by Trustee Hecksel and supported by Trustee Oleson to recess to Board meeting so that the Disability subcommittee could meet regarding Case #2010-F1109 and Case #2010-F1110. Adopted by the following vote: 5 — 0. The Board recessed at 8:46 a.m. It was moved by Trustee Hecksel and supported by Trustee Oleson to resume the Board meeting. Adopted by the following vote: 5 — 0. The Board resumed at 9:03 a.m. It was moved by Trustee Hecksel and supported by Trustee Oleson for applicant 2010 — F1109 be referred to Dr. Roth following past practice requiring that all necessary paperwork be provided to the Retirement Office. Adopted by the following vote: 5 — 0 Regular Meeting December 14, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three It was moved by Trustee Hecksel and supported by Trustee Oleson to refer applicant 2010-F1110 to provide a report from Dr. John Baker from Sparrow Hospital and any new information to the Retirement Office to be forwarded to Dr. Roth for his review. Adopted by the following vote: 5 — 0. There were no requests for Non Duty Disability Retirement. There were no requests for Refund of Accumulated Contributions. It was moved by Trustee Oleson and supported by Trustee Hecksel to excuse Trustee Benson from the meeting. Trustee Wood explained that Trustee Kraus' position on the Board did not require an excuse. Karen Williams notified the Board that Trustee Benson had called the Retirement Office an asked for an excused absence. Adopted by the following vote: 5 — 0. Mr. Richard Warner requested clarification regarding the disability subcommittee's request. Trustee Wood inquired if the Board needs to make an amendment to Trustee Hecksel motion regarding applicant #2010-F1110 to send to the medical director, if requested. Trustee Wood inquired if the minutes should reflect the Board would refer to the applicant to the doctor. Trustee St. Aubin clarified that past practice. dictates that Dr. Roth would contact the Retirement Office if he wishes to see an applicant. Karen Williams would contact the disability subcommittee for approval to refer the applicant to the doctor. Regular Meeting December 14, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Mr. Ken Lane updated-the Board regarding the purchase of Military Time policy. It was moved by Trustee Oleson and supported by Trustee Wood to reimburse Mr. Carlyle Schultz for his actuary fee. Trustee Oleson indicated that Mr. Schultz was under the assumption that he could purchase his military time with his 457 funds. Because he cannot use these funds in-service, his fee should be returned to him. Trustee Hecksel discussed that he understood and was sympathetic with Mr. Schultz. However, Mr. Schultz paid for a service and did receive his actuarial evaluation. Trustee St. Aubin discussed that it was a dangerous precedent to refund monies using retirement system funds to the applicant who purchased an evaluation, but could not use it. Trustee Fabus inquired to the Retirement Office if Mr. Schultz was ever told that he could not purchase military time with 457 funds. Karen Williams indicated that she informed Mr. Schultz that he could not purchase military time with his 457 funds while in-service. Mr. Schultz indicated that he believed that he could purchase based on past practice. Ms. Williams instructed Mr. Schultz to talk with Allen VanGorder of ING to verify this practice. Mr. VanGorder contacted the 457 Committee chairperson who contacted legal counsel. The City Attorney Office indicated the Police and Fire Retirement System Plan does not allow the purchase of military time with 457 funds while in- service. Trustee Oleson withdrew his motion. Trustee Wood requested that information regarding the purchase of Military Time be disseminated for the membership. Trustee Fabus requested that the information be included with the Trustee Book material to be uploaded to the web site. Regular Meeting December 14, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Five It was moved by Trustee Wood and moved by Trustee Hecksel to approve the Purchase of Military Time Policy. Adopted by the following vote: 5 — 0 Ms. Williams indicated that there was an error on Ms. Hillary income verification form. Ms. Hillary inadvertently included her disability retirement monies with her earned income, which together exceeded the allowable amount for 2009. Ms. Hillary completed a corrected form. It was moved by Trustee Wood and supported by Trustee Fabus to approve Mrs. Hillary's adjustment back to her normal pension amount. Adopted by the following vote: 5 - 0. Ms. Williams distributed the 2011 Meeting Schedule. The Police and Fire Board amended the schedule to November 8, 2010 and December 13, 2010. The Board approved the meetings. Attorney Ken Lane reviewed the MAPERS suggested polices for Retirement Board. Attorney Lane discussed a Regular Age and Service Policy, FOIA Policy, Record Retention Policy, Benefit Estimate Policy and Code of Conduct (Ethics) Policy. Attorney Ken Lane would review the City's Ethic Policy and research other such policies for the Board to consider in establishing its own policy. Trustee Oleson reported to the Board that the Joint Committee on Special Projects has met and scored the Actuary Bid packages. The subcommittee will meet on November 23, 2010 to review the packages to narrow the list for interviews. Karen Williams reported to the Board a memo from Mr. Jerry Ambrose indicating the Mr. Thomas Fabus was re-elected to the position of Police Trustee, for the term ending December 30, 2010. Regular Meeting December 14, 2010 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Six Ms. Karen Williams informed the Board that she has scheduled a meeting with Eric Tumbarella to discuss project manager suggestions and migrating information from the old payroll system. Karen Williams has contacted several pension software companies who provide comprehensive system. Companies would like to see a proposal prior to providing a quote. The Police and Fire Board would like to move forward with pension software for the system and website and would also split the cost with the Employees Retirement System. Trustee Oleson updated the Board regarding the Due Diligence visit to New York. Trustee Oleson would book the flight and the Retirement Office will schedule the hotel. Asset Consulting Group has prepared an agenda for the visit for December 7 and December 8, 2010. Trustee Fabus reviewed the Police and Fire Booklet. Attorney Ken Lane made amendments to the booklet. Trustee Wood made a recommendation that this information be uploaded on the intranet as a resource, once the amendments have been made. Ms. Williams distributed and supported the Securities Lending Report for October. Attorney Ken Lane requested permission to attend the Due Diligence visit to New York. Trustee Wood requested an update regarding the Police and Fire Retirement Ordinance. Attorney Ken Lane stated that he would check with the City Attorney's Office It was moved by Trustee Oleson and supported by Trustee Hecksel to allow Attorney Ken Lane to attend the Due Diligence visit to New York and pay his expenses from the securities lending account. Adopted by the following vote. 5 — 0. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the Police and Fire Retirement Meeting. Adopted by the following vote: 5 — 0. It was requested by Trustee Wood to the Chairperson to provide a letter of support for her reappointment to the Board as city council representative. Trustee St. Aubin requested Attorney Ken Lane to draft the letter. The meeting adjourned at 10:16 am. Minutes approved on Jerry Ambrose, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System