WAYNE COUNTY EMPLOYEES RETIREMENT COMMISSION REGULAR MEETING. June 25, :15 am

Transcription

1 WAYNE COUNTY EMPLOYEES RETIREMENT COMMISSION REGULAR MEETING 9:15 am 28 WEST ADAMS, 18 TH FLOOR CONFERENCE ROOM GRAND PARK CENTRE DETROIT, MICHIGAN Commissioners Present: Frank Simone Henry Wilson Tom Yee Elizabeth Misuraca Hugh Macdonald Tony Saunders Office of the Wayne County Executive ELECTED MEMBERS TO THE BOARD EX-OFFICIO MEMBER Absent: Gary Woronchak, Chairman Wayne County Commission EX-OFFICIO MEMBER Others Present: Robert Grden, Gerard Grysko, Wendy Foster, Felicia Hollis, Kevin Kavanagh, Mark Abbo, Peter Brown, Brian Green, Robert Abb and Bobby Hawkins. 1

2 1. Call to Order at 9:15 am. 2. Roll Call; Present: Frank Simone, Henry Wilson, Tom Yee, Elizabeth Misuraca, Hugh Macdonald and Tony Saunders. Absent: Gary Woronchak. Mr. Robert Abb from VanOverbeke, Michaud & Timmony, P.C. entered the meeting and moved to the table at 9:15 am. am. Mr. Peter Brown and Mr. Brian Green of AndCo Consulting entered the meeting at 9:15 3a. Approval of minutes of the meeting of May 30, RESOLVED, by the Wayne County Employees Retirement Commission, to Waive the reading of the minutes and Approve the minutes of May 30, b. Applications for retirement. Mr. Wilson moved for the adoption of the following resolution: RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the applications for retirement. APPLICATIONS Name Dept. Retirement Date Denise Jackson WCS 8/1/2018 Richard Koscho WCAA 8/1/2018 DISABILITY APPLICATIONS Name Dept. Application Date Phillip Kozlowski, Jr WCS 05/09/18 Joan Day Reg of Deeds 05/17/18 Charles Highbaugh DHVCW 06/12/18 3c. Removals from pension payroll because of death. 2

3 RESOLVED, by the Wayne County Employees Retirement Commission, that the listed retirees be removed from the pension payroll because of their deaths on the indicated dates; and further RESOLVED, that any monies due to the deceased be paid to the named beneficiaries, subject to the receipt of a death certificate in each case. DEATHS Name Betty Stringer Barbara Bynum Thomas Ashburn James Williams Donna Smith Arthur Lombard Rebecca Davis David Tyra Marjorie McKeown Kathleen Ott Lewis Davis Gary Bennett Shirley Schettler Georgia Floyd-Mitchell Rosemary Furlong 3d. Retirement Allowances. RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the final retirement allowances. NEW RETIREES Name Dept. Name Dept. Barbara Cook - Dent WCS Mark Morris WCRC Derrick Anderson Deferred Cardell Davis WCS Tina L. Cook Co Clk Randell Bacon DPS Micheal Gilmartin WCS Lisa A Romolino Alt Payee Anthony Guerreso WCS 3e. Adjustment of pensions for retirees because of additional earnings, annual leave payments, overpayments, etc. 3

4 RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the adjustment of pensions for retirees because of additional earnings, annual leave payments, overpayments, etc. UPDATES FROM PREVIOUS AGENDA (NEW RETIREES) Name Effective Date Charles Johnson 05/01/18 ADJUSTMENTS Name Adjustment Date Gracie E Gladney 06/01/18 Dean M Pigott 06/01/18 Charles A. Smith 05/01/18 Phillip Belcher 06/01/18 Yvonne Owen 06/01/18 Thomas Chambers 06/01/18 ADJUSTMENTS TO CONTRIBUTIONS ONLY Name Adjustment Date Bobby Collins 06/01/18 Lynn Lesnick 06/01/18 3f. Re-calculations and/or Pop-ups due to death of spouse, and attainment of age 60 under Disability Retirement as well as additional contributions. RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the Re-calculations and/or Pop-ups due to death of spouse, and attainment of age 60 under Disability Retirement as well as additional contributions. RE-CALCULATIONS (None) Name Conversion Date POP-UPS Name Pop-Up Date John Beherlein 6/1/2018 4

5 3g. June stipends of $156, for pre-medicare eligible members pursuant to Wayne County Ordinance RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the June stipends of $156, for pre-medicare eligible members pursuant to Wayne County Ordinance h. Correspondence. correspondence. 4. Consideration of meeting minutes for the closed session(s) of April 30, RESOLVED, by the Wayne County Employees Retirement Commission, to Waive the reading of the minutes and Approve the closed session(s) of April 30, The motion was supported by Mr. Wilson and carried unanimously 6-0. Mr. Green and Mr. Brown of AndCo Consulting moved to the table at 9:17 am. 5. Consideration of the May flash report on the Defined Benefit Plan from AndCo Consulting. May flash report on the Defined Benefit Plan from AndCo Consulting. The motion was supported by Ms. Misuraca and carried unanimously Consideration of a review on the Defined Benefit Plan watch list for both the US Small Cap Growth and Small Cap Value Equity Managers from AndCo Consulting. 5

6 review on the Defined Benefit Plan watch list for both the US Small Cap Growth and Small Cap Value Equity Managers from AndCo Consulting; and further RESOLVED, to Accept the recommendation from AndCo Consulting to keep NorthPointe Capital Small Cap Value manager on the watch list and to reevaluate with AndCo Consulting in 2019 after receipt of final 2018 performance data. The motion was supported by Mr. Yee and carried unanimously 6-0. recommendation from AndCo Consulting to terminate SIT Small Cap Growth to direct AndCo Consulting and staff to facilitate the transition of the assets to an appropriate small cap growth index fund. The motion was supported by Mr. Macdonald and carried 5-1 with Ms. Misuraca voting no. Chairman Simone called for a recess at 10:16 am. The Retirement Commission returned to session at 10:30 am with the following Commissioners present: Frank Simone, Henry Wilson, Tom Yee, Elizabeth Misuraca, Hugh Macdonald and Tony Saunders. 7. Consideration of an update on the Securities Lending Program at Northern Trust from AndCo Consulting. Mr. Saunders exited the meeting for the day at 10:43 am. RESOLVED, by the Wayne County Employees Retirement Commission, to Receive and File the update on the Securities Lending Program at Northern Trust from AndCo Consulting; and further recommendation from AndCo Consulting to convert to the NILAP Cash Collateral Fund. The motion was supported by Mr. Wilson and carried unanimously Consideration of an update on the Securities Lending Program at Northern Trust from VanOverbeke, Michaud & Timmony, P.C. 6

7 RESOLVED, by the Wayne County Employees Retirement Commission, to Receive and File the verbal update on the Securities Lending Program at Northern Trust from VanOverbeke, Michaud & Timmony, P.C. The motion was supported by Ms. Misuraca and carried unanimously 5-0. RESOLVED, to Approve the recommendation from AndCo Consulting and to direct staff to work with AndCo Consulting and Northern Trust to withdraw from Northern Trust s securities lending Collective Core Short Term Investment Fund and to transition into Northern Trust s securities lending NILAP Cash Collateral Fund. The motion was supported by Mr. Yee and carried 4-1 with Mr. Simone voting no. 9. Consideration of a status update on the Defined Benefit Plan from AndCo Consulting. verbal status update on the Defined Benefit Plan from AndCo Consulting. The motion was supported by Mr. Wilson and carried unanimously 5-0. RESOLVED, by the Wayne County Employees Retirement Commission, to Withdrawal the May 30, 2018 fee reduction resolution regarding the SIT Small Cap Growth Fund. The motion was supported by Mr. Wilson and carried unanimously Consideration of a report and recommendation from AndCo Consulting regarding the Steward Real Estate Partners Fund I, L.P. 6 th Amendment agreement. Ms. Misuraca moved the adoption of the following resolution: recommendation from AndCo Consulting regarding the Steward Real Estate Partners Fund I, L.P. 6 th Amendment agreement. The motion was supported by Mr. Yee and carried unanimously Consideration of a legal report from VanOverbeke, Michaud & Timmony, P.C. regarding the Steward Real Estate Partners Fund I, L.P. 6th Amendment agreement. 7

8 legal report from VanOverbeke, Michaud & Timmony, P.C. regarding the Steward Real Estate Partners Fund I, L.P. 6th Amendment agreement. The motion was supported by Ms. Misuraca and carried unanimously Consideration of approval and authorization of the Steward Real Estate Partners Fund I, L.P. 6th Amendment agreement. RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the Steward Real Estate Partners Fund I, L.P. 6th Amendment agreement; and further RESOLVED, to Authorize the Chair or Vice Chair to execute the agreement. The motion was supported by Mr. Macdonald and carried unanimously Consideration of an verbal report from Committee Chair, Hugh Macdonald regarding the Audit Committee meeting of June 21, verbal report from Committee Chair, Hugh Macdonald on the Audit Committee meeting June 21, The motion was supported by Ms. Misuraca and carried unanimously 5-0. WHEREAS, the Retirement Commission of the Wayne County Employees Retirement System (the Retirement Commission ) is vested with the fiduciary responsibility for the proper administration, management and operation of the Retirement System, and for making effective the Retirement System provisions, and WHEREAS, pursuant to its Service Provider Review Policy, the Retirement Commission periodically reviews the performance, cost, and services offered by its Professional Service Providers, and WHEREAS, the Retirement Commission conducts due diligence on its Professional Service Providers by, among other processes, analyzing and comparing both existing and prospective Professional Service Providers by methods including, but not limited to, comparing formal proposals, and 8

9 WHEREAS, on January 8, 2018, the Retirement Commission issued a Request for Proposals for a Defined Contribution Investment Consultant ( DC RFP ) and designated the Audit Committee, with the assistance of its Legal Counsel, the VanOverbeke, Michaud & Timmony, P.C., law firm ( VMT ), to review the responses to the DC RFP and make a recommendation to the Retirement Commission, and WHEREAS, after reviewing the responses to the DC RFP at its February 8, 2018, meeting, the Audit Committee recommended that the Retirement Commission receive and file the responses to the DC RFP and continue its due diligence by issuing two new RFPs: and 1. A Request for Proposals for an Investment Consultant to advise on all investment related issues related to the Defined Contribution Plan and the Deferred Compensation Plan(s); and 2. A Request for Proposal for an investment professional/firm to assist the Retirement Commission with establishing, designing, implementing and administering a comprehensive Financial Wellness Program, and offer investment advice and education to all Members, Participants, Retirees and Beneficiaries of the Retirement System, WHEREAS, further, at its February 26, 2018, meeting, the Retirement Commission instructed the Audit Committee, with the assistance of its Legal Counsel, VMT, to prepare and issue an RFP for: (1) an Investment Consultant to advise on all investment related issues related to the Defined Contribution Plan and the Deferred Compensation Plans; and (2) an investment professionals to assist the Retirement Commission with establishing, designing, implementing and administering a comprehensive Financial Wellness Program, and offer investment advice and education to all Members, Participants, Retirees and Beneficiaries of the Retirement System, and WHEREAS, at the Audit Committee s March 15, 2018, meeting, the Committee accepted the RFP for an Investment Consultant to advise on all investment related issues related to the Defined Contribution Plan and the Deferred Compensation Plan(s) prepared by VMT and directed staff to issue the RFP on March 19, 2018, with responses due April 20, 2018, and WHEREAS, at its regular meeting held on April 26, 2018, the Audit Committee received a report from staff that a total of nine (9) firms submitted timely responses to the RFP, and WHEREAS, at its May 24, 2018, May 30, 2018, and June 21, 2018, the Audit Committee reviewed and evaluated the RFP responses with the assistance of staff and VMT using the evaluation criteria identified in section IX of the RFP, including but not limited to the firm s: Responses to the specific points outlined in the RFP; Experience in providing similar Deferred Compensation and Defined Contribution consulting services to similar clients; 9

10 References; and Fee proposal, and WHEREAS, pursuant to the direction from the Retirement Commission at its February 26, 2018, meeting, at its June 21, 2018, meeting, the Audit Committee selected and recommended three firms as finalists to be considered by the Retirement Commission: AndCo Consulting, Retirement Plan Advisors, and Sigma Planning Corporation; therefore be it RESOLVED, by the Wayne County Employees Retirement Commission, to accept the three finalists selected by the Audit Committee; and further RESOLVED, that the Retirement Commission will invite the three finalists recommended by the Audit Committee to interview and make a presentation to the Retirement Commission at the Retirement Commission s July 23, 2018, regular meeting, and further RESOLVED, that each finalist shall be allotted 45 minutes to make a presentation to the Retirement Commission and an additional 15 minutes to answer questions, and further RESOLVED, that the primary contact identified by each finalist in the firm s response to the RFP shall be required to attend and participate in the interview, and further RESOLVED, that staff will coordinate with the finalists and schedule the interviews appropriately. The motion was supported by Ms. Misuraca and carried unanimously Consideration of a report from Gabriel, Roeder, Smith & Company on the Wayne County Airport Authority GASB Statement 67/68 accounting and financial reporting for pensions. RESOLVED, by the Wayne County Employees Retirement Commission, to Receive and File the report from Gabriel, Roeder, Smith & Company on the Wayne County Airport Authority GASB Statement 67/68 accounting and financial reporting for pensions; and further RESOLVED, to Authorize the distribution of the reports to the Wayne County Airport Authority. The motion was supported by Mr. Wilson and carried unanimously Consideration of nominations to the Wayne County Employees Retirement System Election Commission member for a three year term beginning on July 1, Chairman Simone asked for nominations. 10

11 Mr. Macdonald nominated Candace Jenkins to the Wayne County Employees Retirement System Election Commission. Mr. Wilson seconds the nomination of Candace Jenkins to the Wayne County Employees Retirement System Election Commission. Chairman Simone asked for other nominations and no other nominations were made. Chairman Simone closed the nominations. 16. Consideration of appointing a member to the Wayne County Employees Retirement System Election Commission for a three year term beginning on July 1, RESOLVED, by the Wayne County Employees Retirement Commission, to Appoint Candace Jenkins as the Wayne County Employees Retirement System Election Commission member for a three year term beginning on July 1, The motion was supported by Mr. Yee and carried unanimously Consideration of an update from staff regarding the Medical Director contract with Dr. Andrew Vosburgh at St. John Providence Health System. RESOLVED, by the Wayne County Employees Retirement Commission, to Accept update from staff regarding the Medical Director contract with Dr. Andrew Vosburgh at St. John Providence Health System; and further RESOLVED, that if no progress is made by September 28, 2018 meeting, staff needs to immediately prepare a Medical Director, Request for Proposal (RFP). The motion was supported by Mr. Wilson and carried unanimously Consideration of a request to change the Quarterly Retirement Commission meeting scheduled for Friday, July 27, 2018 to Thursday, July 26, RESOLVED, by the Wayne County Employees Retirement Commission, to Approve the change for the Retirement Commission meeting scheduled on Friday, July 27, 2018 to Thursday, July 26, 2018 at 9:15 am and post the meeting notification. The motion was supported by Ms. Misuraca and carried unanimously

12 20. Such other Matters. Mr. Grden informed the Commissioners on July 12, 2018, Gabriel, Roeder, Smith & Company will be presenting at the Policy Committee meeting. Mr. Grden informed the Commissioners that the three finalists (AndCo Consulting, Retirement Plan Advisors, and Sigma Planning Corporation) for the RFP for Investment Consultant of the 401(a) and 457(b) plans will be presenting at the Commission meeting on July 23, 2018, and that some agenda items will be placed on the July 26, 2018 meeting as permitted in the Retirement Commission s Rules of Procedure. Mr. Simone requested all Commissioners time of attendance should be posted on the first page of the meeting minutes. Mr. Abb discussed previously proposed federal legislation, the Public Employee Pension Transparency Act, that is excepted to be reintroduced, with the Commissioners. RESOLVED, by the Wayne County Employees Retirement Commission, to Authorize the Executive Director, with the assistance of VanOverbeke, Michaud & Timmony, P.C., to send correspondence to local federal officials opposing the Public Employee Pension Transparency Act. The motion was supported by Mr. Yee and carried unanimously 5-0. Mr. Wilson made a motion to go into Closed Session pursuant to M.C.L.A (1) (g), which permits a Public Body to discuss matters in closed session that are subject to Attorney- Client Privilege, noting that a roll call is required for this motion. This is not subject to disclosure under The Freedom of Information Act, M.C.L.A et seq. The agenda item to be discussed is #19. The motion was supported by Mr. Yee and carried 5-0 with a roll call vote, Frank Simone - yes, Henry Wilson - yes, Tom Yee yes, Elizabeth Misuraca - yes, Hugh Macdonald yes. Mr. Kavanagh exited the meeting at 11:22 am. Mr. Brown and Mr. Green exited the meeting at 11:22 am. The Board went into closed session at 11:22 am. The Board came out of closed session at 11:31 am. 19. Consideration a legal report on ongoing litigation from VanOverbeke, Michaud & Timmony, P.C regarding composition of the Retirement Commission. 12

13 legal report on ongoing litigation from VanOverbeke, Michaud & Timmony, P.C. regarding composition of the Retirement Commission. The motion was supported by Mr. Wilson and carried unanimously Reconsiderations. There were no reconsiderations. 22. Public Comment. 23. Adjournment. There was no public comment. Mr. Macdonald moved to adjourn the meeting. The motion was supported by Mr. Wilson and carried unanimously 5-0. There being no further business to come before the Retirement Commission the meeting was adjourned at 11:32 am subject to the call of the Chair. VOUCHERS RETIREMENT EXPENSE FUND Absopure Water City of Detroit/ MPD Parking for July , DeRoy & Devereaux Management fee quarter ending 3/31/18 52, Direct TV Charges for service period: 06/18/18-07/17/ Foster, Wendy Refreshments for board meetings Gabriel, Roeder, Smith & Co EDRO service for April 2, , Gabriel, Roeder, Smith & Co EDRO service for May 8, , Gabriel, Roeder, Smith & Co EDRO service for January 24, , Gabriel, Roeder, Smith & Co Actuarial services for May , Gerard J Grysko Consulting LLC Service for the month of May, , Grden, Robert Replenish petty cash Grden, Robert American Express credit card fee Grysko, Gerard American Express credit card fee Grysko, Gerard NCPERS conf. May 12-18, 2018, taxi transportation Grysko, Gerard NCPERS conf. May 12-18, 2018, taxi transportation Grysko, Gerard Folding machine maintenance Grysko, Gerard WCERS website retention fee Grysko, Gerard Stratlogic fee for WCERS website Grysko, Gerard Refreshments for regular board meeting 05/29/ Grysko, Gerard Refreshments for committee meeting 05/23/

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