1. The regular meeting of the Police and Fire Retirement System was called to order by President Lamerato at 3:30 p.m.

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1 REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JANUARY 15, 2015 FIRE DEPARTMENT CONFERENCE ROOM RYAN ROAD STERLING HEIGHTS, MI The regular meeting of the Police and Fire Retirement System was called to order by President Lamerato at 3:30 p.m. 2. Board Members present: Lamerato, Wellhausen, Schwarb, Maleszyk, Varney. Also present: Tim Brice representing Morgan Stanley Graystone Consulting/The Brice Group; Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND REGULAR AGENDAS Motion by Wellhausen, supported by Schwarb, to approve the consent agenda as presented. Motion by Wellhausen, supported by Schwarb, to approve the regular agenda as presented.

2 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of December 18, Motion by Varney, supported by Maleszyk, to approve the minutes as presented. The motion carried; the minutes of the regular meeting of December 18, 2014 are hereby approved. 5. CITIZEN PARTICIPATION There was no Citizen participation. 6. REPORT FROM LEGAL COUNSEL This item will be taken up at the end of the regular agenda. Mr. Michaud commented on items of old business as they were considered. 7. CORRESPONDENCE a. Correspondence from Intercontinental dated December 17, 2014 re: distribution in Intercontinental Real Estate Investment Fund III. b. Other correspondence received from: 1. The Kiplinger Letter 2. The Pomerantz Monitor 3. Robbins, Geller, Rudman & Dowd LLP 4. University Conference Services c. Magazines received: 1.Institutional Investor for December 2014/January Pensions & Investments for December 22, c. Checking Account Summary Beginning Balance $ 5, /01/14 Additions (1) 1. 12/30 $ 5, Page Three c. Checking Account Summary cont. Subtractions (4) $1,922.82

3 1. 12/01 Check AT & T phone bill 11/16/ /05 Check Contract Payment Nancy Duyck 3. 12/07 Check Contract fee Gurin & Gurin 4. 12/19 Check Contract Payment Nancy Duyck Electronic withdrawals (4) $1, / IRA contribution 2. 12/ IRS Fed. tax w/h 3. 12/ Michigan St. tax w/h 4. 12/ IRS Fed. tax w/h Ending Balance $ 6, /31/14 d. Transmittal of Checks 1. There were no checks received this month. 9. FUNDS MANAGEMENT a. The current value of funds as of December 31, 2014 is detailed below: Clearing account $ 3,057, Intercontinental $ 10,545, Winslow $ 25,435, Janus $ 25,732, Eagle $ 25,598, Herndon $ 23,458, Earnest Partners $ 14,075, NFJ/Allianz $ 15,461, AIM/Invesco $ 16,708, Western $ 23,278, Pimco $ 22,296, Checking account $ 6, TOTAL FUNDS $ 206,099, b. The Board received a copy of the Summary of Employer Contributions to the Police and Fire Retirement System for the 2014 tax year as of 1/14/15. The System has received $7,601, of the 2014/15 budget of $7,953,970.00, leaving a $352, balance. Page Four 9. FUNDS MANAGEMENT - cont. c. Benefit Register Listing as of January 1, 2015 from Comerica Bank showing 317 retirees/beneficiaries with a payout for January of $1,323, and a year-to-date of $1,323, d. The current Merrill Lynch Bond index for December 2014 is 2.15%. 1. Abel/Noser Reports for November and December 2014 Abel/Noser has supplied the November and December 2014 report.

4 REGULAR AGENDA a. Disbursements other than retiree benefit payments (bills) 1. Disbursement to Rodwan Consulting Company in the amount of $2, for actuarial and consulting services rendered for the fourth quarter Motion by Maleszyk, supported by Wellhausen, to approve the bill as presented. b. Disbursement to retirees/members other than monthly benefit payments 1. Christopher Jodoin - refund of contributions Fire Fighter Christopher Jodoin was hired on April 9, 2012 and was laid off on June 30, He was re-hired on May 20, 2014 and terminated on December 15, Mr. Jodoin has requested a refund of his contributions and interest. Walt Hessell has calculated the amount of the refund. All required paperwork is on file in the Pension Office. Page Five REGULAR AGENDA b. Disbursement to retirees/members other than monthly benefit payments - cont. 1. Christopher Jodoin - refund of contributions cont. Motion by Maleszyk, supported by Wellhausen, to approve the disbursement for the refund of contributions and interest as presented. 9. FUNDS MANAGEMENT e. Asset allocation Tim Brice was in attendance to discuss asset allocation. Mr. Brice will provide monthly updates on Herdon and provide a historic view of their return on energy stocks. He will also provide to the Board an update from Intercontinental regarding the timeframe of the investment schedule for Intercontinental. He was advised that the Board would like to resume receiving weekly asset allocation updates.

5 2. Joseph Toth DROP retirement termination information - discussion Fire Lt. Joseph Toth of the Fire Department terminated his DROP retirement as of January 2, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the disbursement for the regular pension and process the retirement certificate as presented. Page Six 3. Ryan Braathen - EDRO resolution discussion L The Board is in receipt of an EDRO for active Police Officer Ryan Braathen. Legal Counsel has approved the EDRO. The following EDRO resolution was considered. RE: MICHELLE (BRAATHEN) LINDSEY v. RYAN BRAATHEN MACOMB COUNTY CIRCUIT COURT CASE NO DO WHEREAS, the Board of Trustees is in receipt of an Eligible Domestic Relations Order (EDRO) dated December 18, 2014, wherein Michelle A. Braathen (n/k/a Michelle A. Lindsey), the Alternate Payee, is awarded certain rights to the retirement benefits of Ryan P. Braathen, the Participant, and WHEREAS, the Alternate Payee is entitled to claim a portion of the Participant s retirement benefit from the Defined Benefit Plan, and WHEREAS, the payments from the plan to the Alternate Payee of the Participant s defined benefit benefits shall begin when the Participant commences benefits from the Retirement System, unless the Alternate Payee elects to receive benefits at any time after the Participant reaches his earliest retirement date, but not later than when the Participant actually commences benefits, and WHEREAS, the Board s policy is to require that the cost for the actuary s calculations are to be borne by the parties to the domestic relations proceedings, and the order provides that the Participant and the Alternate Payee shall be equally responsible for any and all additional costs for actuarial services, and WHEREAS, said matter has been discussed with Legal Counsel who has opined that the applicable terms of said court order are consistent with the provisions of the

6 Retirement System and applicable law including Public Act 46 of 1991 (MCLA ) as amended, therefore be it RESOLVED, that the Board of Trustees acknowledges receipt of said court order, will pay pension benefits consistent with said order subject to an application being filed by either the Participant or Alternate Payee seeking payment, and further Page Seven 3. Ryan Braathen EDRO resolution discussion cont. RESOLVED, that upon application of either the Alternate Payee or the Participant, this file be forwarded to the Board s actuary for calculation of the benefits, and further RESOLVED, that a copy of this resolution be immediately attached as the top sheet of the Participant s pension file and other appropriate records be kept for the Retirement System relative to this matter, and further RESOLVED, that copies of this resolution be sent to Ryan P. Braathen, the Participant; Andrew Canu, Esq., Attorney for the Participant; Michelle A. Lindsey (Braathen), the Alternate Payee; Sandra A. Sharp, Esq., Attorney for the Alternate Payee; and the Board s actuary. Motion by Schwarb, supported by Wellhausen, to adopt the resolution as presented. The motion carried; the resolution is hereby adopted. 4. Review of Actuarial RFPs - discussion Mr. Brice left the meeting at 4:15 p.m. 6. REPORT FROM LEGAL COUNSEL The Board discussed all the RFPs that were received and chose three firms for interviews at the March meeting. The three are Buck Consultants; Gabriel Roeder Smith; and the current actuary, Rodwan Consulting. The Secretary will send out the correspondence to the three firms. Mr. Michaud requested that the Board go into closed session to discuss litigation. Motion by Wellhausen, supported by Schwarb, to go into closed session to discuss litigation. Ayes: Lamerato, Wellhausen, Schwarb, Maleszyk, Varney. Page Eight 6. REPORT FROM LEGAL COUNSEL cont.

7 Motion by Wellhausen, supported by Maleszyk, to exit closed session. Ayes: Lamerato, Wellhausen, Schwarb, Maleszyk, Varney. The following motion was considered: Motion by Wellhausen, supported by Schwarb, to pursue litigation regarding IBM and to authorize the Secretary sign the letter on behalf of the Board as recommended by the Board s Legal Counsel. Legal Counsel also distributed information regarding securities litigation. 11. TRUSTEE COMMENTS None. 12. ADJOURNMENT Motion by Schwarb, supported by Wellhausen, to adjourn at 4:43 p.m. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary