Joint Retirement Board of Trustee

CITY OF LANSING JOINT EMPLOYEES’ RETIREMENT SYSTEM And POLICE AND FIRE RETIREMENT SYSTEM MEETING MINUTES Joint Meeting Minutes August 15, 2023 10th Floor Conference Room Tuesday, 8:30 a.m. The meeting was called to order at 8:43 a.m. Trustees present: (ERS) Bahr, Ebright, Jeffries, Kirkland, O’Leary, Parker, Schor – 7 (Police & Fire) Kirkland, Kreft, Moore, Schor, Taylor, Wilcox, Wohlfert, Wood – 8 Excused: (ERS), Dedic, Garza, Kraus Excused: (Police & Fire): 0 Others present: Karen Williams, Human Resources Department, Attorney Aaron L. Castle, VanOverbeke, Michaud & Timmony, P.C., and Mr. Nathan Burk, Asset Consulting Group. It was moved by Trustee Bahr and supported by Trustee Ebright to excuse Trustee Dedic, Trustee Garza and Trustee Kraus from the Joint Employees’ Retirement System Board and Police and Fire Retirement System August Board meeting. Adopted by the following vote: 7 – 0. It was moved by Trustee Wood and supported by Trustee Moore to approve the Official Minutes of the Police and Fire Retirement System Board meeting of July 18, 2023, with corrections. Adopted by the following vote: 8 – 0. It was moved by Trustee Bahr and supported by Trustee Ebright to approve the Official Minutes of the Employees’ Retirement System Board meeting of July 18, 2023. Adopted by the following vote: 8 – 0. There were no public comments for items on the agenda. Secretary’s Report (Police & Fire): 0 new sworn fire member(s), 1 new sworn police member(s), 0 reinstatement(s), 1 refund(s), 0 transfers, 2 retired. Total active membership: 379. 1 death(s) Phillip J. Randall, IAFF, died 7/18/2023, age 81, spouse to receive 50%. Refunds made since the last regular meeting amounted to $2,706.98. Reimbursements to the System year-to-date amount to $4,992.00. Retirement allowances paid for the month of July 2023 amounted to $3,178,674.73. Total retirement checks printed for the P&F System: 793. Total retirement checks printed for both systems: 1,719. Domestic relations order received: 0. Domestic relations orders pending: 0. Eligible Domestic Relations Order Certified: 1. Joint Minutes August 15, 2023 Page 2 Tuesday, 8:30 a.m. Secretary’s Report (Employees’ Retirement System): 7 new member(s), 0 reinstatement(s), 0 refund(s), 0 transfers, 2 retired. Total active membership: 423. Total deferred: 69. 3 death(s) Shirley Abel, died 7/7/2023, age 92, spouse of nonbargaining retiree; Judith Benson, died 7/21/2023, age 76, spouse of Teamster retiree; Brenda Campbell, died 7/8/2023, age 72, spouse of Teamster retiree. Refunds made since the last regular meeting amounted to $0. Retirement allowances paid for the month of July 2023, amounted to $2,020,444.53. Total retirement checks printed for the ERS System: 926. Total Retirement checks printed for both systems: 1,719. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Wilcox and supported by Trustee Moore to approve the following applicant for Regular Age and Service Retirement for Police and Fire Retirement System: Mark Burger (Fire – IAFF), 25 years of service credits, age 52, effective 9/15/2023 (Sworn Date October 5, 1998) Tim Garver (Fire – IAFF), 25 years of service credits, age 47, effective 9/16/2023 (Sworn Date October 5, 1998), Erich Huegli (Fire – IAFF), 25 years of service credits, age 49, effective 9/26/2023 (Sworn Date: October 5, 1998) Danny L. Komm (Fire – IAFF), 24 years, 1 month of service credits, age 55, effective 9/25/2023 (Sworn Date: September 13, 1999). John David Lomakoski (Police – CCLP Nonsupervisory), 10 years, 1 month, age 55, effective 10/1/2023 (From Deferred) Steve G. Mazurek (Fire – IAFF), 25 years of service credits, age 53, effective September 22, 2013 (Sworn Date October 5, 1998) Gregory Meitler (Fire – IAFF), 25 years of service credits, age 49, effective 9/12/2023 (Sworn Date: October 5, 1998) Kerwin T. Norwood (Fire – IAFF), 25 years of service credits, age 50, effective 9/15/2023 (Sworn Date: October 5, 1998) Carl Pawluk (Fire – IAFF), 25 years of service credits, age 46, effective 9/12/2023 (Sworn Date: October 5, 1998) Michael Tobin (Fire -IAFF), 25 years of service credits, age 53, effective 9/15/2023 (Sworn Date October 5, 1998) Adopted by the following vote: 8 – 0. Joint Retirement Minutes August 15, 2023 Page 3 Tuesday, 8:30 a.m. There were no applications for Regular Age and Service Retirement for the Employees’ Retirement System. Ms. Williams reported that Applicant #2023-F0516 had been scheduled to see the medical director and the Board was waiting on the report. Ms. Williams reported that Applicant #2023-P0718 had returned the medical release and reports and would be scheduled to see the medical director. There were no requests for non-duty disability for the Police and Fire Retirement System. Ms. Williams reported that Applicant #2023 -E0321 had seen the medical director and the Employees Retirement System was waiting for the medical report. Ms. Williams reported that Retirement Office was waiting of medical reports for Applicant #2023-E0620 and Applicant #2023-E0621. There were no requests for non-duty disability retirements for the Police and Fire Retirement system. There were no requests for non-duty disability retirements for the Employees’ Retirement System. There were no requests for refunds of accumulated contributions for the Police and Fire Retirement System. Ms. Williams reported that Mr. Jeffrey N. Sergent, Teamster 214 Non-Supervisory was not vested has requested a refund of his accumulated contributions of $258.53 from the Employees’ Retirement System. It was moved by Trustee Bahr and supported by Trustee Ebright to refund the accumulated contributions of Mr. Jeffrey N. Sergent. Adopted by the following vote: 7- 0. Ms. Williams reported the upcoming Training and Education: MAPERS Fall Conference – Bellaire, Michigan (9/8 – 9/12, 2023) IFEBP Annual Conference – Boston, MA (10/1- 10/4, 2023). There were no public comments for items not on the agenda. Ms. Williams reported the Police and Fire Retirement System invoices for August: VanOverbeke, Michaud and Timmony, P.C., $1,969.50 with itemized services for the 2nd quarter. It was moved by Trustee Wood and supported by Trustee Monroe to approve the Police and Fire Retirement System invoices for August 2023. Adopted by the following vote: 8 – 0. Ms. Williams reported the Operating Expenses for the 2nd Quarter from April thru June 30, 2023, for the Police & Fire Retirement System. The gross payroll was $9,519,178.81, with year-to-date retirement payroll at $18,957,957. This amount was 51% of the budget. Investment fees for the quarter was $369,95.72, contractual fees was $41,762.75. Total operating and administrative expenses for the quarter was $9,943,629.28. Joint Retirement Minutes February 21, 2023 Page 4 Tuesday, 8:30 a.m. Ms. Williams reported the notification of the State of Michigan pension grant from Mayor Schor. Joint Retirement Minutes August 15, 2022 Page 5 Tuesday, 8:30 a.m. Trustee Kirkland stated that the State of Michigan would provide the funding directly to the City of Lansing’s account at Northern Trust. It was moved by Trustee Bahr and supported by Trustee Ebright to accept the State of Michigan Pension Grant for the Employees’ Retirement System. Adopted by the following vote: 7 -0. Ms. Williams reported the Employees’ Retirement System invoices for August: William Blair, $19,882.41; VanOverbeke, Michaud & Timmony, P.C., $2,710.50 with itemized services for the 4th quarter. It was moved by Trustee Bahr and supported by Trustee Ebright to approve payments for the Employees’ Retirement System invoices for August 2023. Adopted by the following vote: 7 - 0. Ms. Williams reported the Operating Expenses for the 2nd Quarter from April thru June 30, 2023, for the Employees’ Retirement System. The gross payroll was $6,050,346.07, with year-to-date retirement payroll at $12,087,385. Investment fees for the quarter was $242,207.18, contractual fees was $32613.74. Total operating and administrative expenses for the quarter was $6,338,441.94. Ms. Williams reviewed the draft letter from PBI to affected retirees regarding the security breach. The letter detailed what happened, what information was involved and the steps that PBI has taken to address the situation. Kroll monitoring services were made available to retirees and a call center was set up to answer questions. Ms. Williams also sent a frequently asked question from Kroll to the Trustees. Ms. Williams provided an update from Tegrit. The pension software company reported that it has decided to change hosting partners after many months of discovery and testing. Tegrit indicated that there would be no cost changes to the City of Lansing for the hosting change. Karen Williams also reported that Tegrit was still working on updating the system with changes from the newer bargaining agreements. Mr. Nathan Burk referred to the Market Snapshot of the 2nd Quarter Investment report. Mr. Burk discussed the financial performance of the Employees’ Retirement System and the Police and Fire Retirement System for the period ending June 30, 2023. Mr. Burk reviewed current market environment and discussed the inflation, risk, and interest rates. Mr. Burk reviewed the Employees’ Retirement System and The Police and Fire Retirement System Asset Allocation. He reviewed the portfolio’s goals and objectives. He revisited and confirmed strategic asset allocation targets and expectation of continued uncertainty and focus on the longer term. Mr. Burk explained changes in Asset Consulting Group assumptions regarding valuations and yields. Mr. Burk discussed the redemptions from ABS. Mr. Burk updated the Boards that redemption from Trumbull Property had been requested. The proceeds would fund the Principal Investment. It was moved by Trustee Wilcox and supported by Trustee Taylor to adjourn the Joint Retirement System Board meeting for the Police and Fire Retirement System. Adopted by the following vote: unanimous It was moved by Trustee Bahr and supported by Trustee Ebright to adjourn the Joint Retirement System Board meeting for the Employees’ Retirement System. Adopted by the following vote: unanimous The Meeting adjourned at 9:39 a.m. Minutes approved on 9/19/2023. ________________________ Desiree Kirkland, Secretary _____________________________ __________________________ Dennis R. Parker, Chairperson Eric P. Wohlfert, Chairperson Employees’ Retirement System Police and Fire Retirement System