JOURNAL OF PROCEEDINGS BOARD OF TRUSTEES OF THE POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT 9:00 A.M.

Transcription

1 JOURNAL OF PROCEEDINGS BOARD OF TRUSTEES OF THE POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT 9:00 A.M. RETIREMENT SYSTEMS CONFERENCE ROOM ONE DETROIT CENTER 500 WOODWARD AVENUE 30 TH FLOOR DETROIT, MICHIGAN PRESENT JUNE ADAMS MATTHEW GNATEK ANGELA R. JAMES MICHAEL JAMISON EDSEL JENKINS BRENDA JONES JOHN NAGLICK SEAN P. NEARY GEORGE ORZECH JEFFREY PEGG JOHN SERDA MICHAEL A. SIMON LOUIS M. SINAGRA EX/OFFICIO TRUSTEE/CORPORATION COUNSEL ALTERNATE ELECTED TRUSTEE/POLICE EX/OFFICIO TRUSTEE/POLICE/MAYORAL DESIGNEE EX/OFFICIO TRUSTEE/DEPUTY FINANCE DIRECTOR EX/OFFICIO TRUSTEE/FIRE/MAYORAL DESIGNEE EX/OFFICIO TRUSTEE/CITY COUNCIL PRESIDENT EX/OFFICIO TRUSTEE/INTERIM TREASURER ELECTED TRUSTEE/FIRE ELECTED TRUSTEE/FIRE ELECTED TRUSTEE/FIRE/VICE CHAIRMAN ELECTED TRUSTEE/POLICE ELECTED RETIRANT TRUSTEE/FIRE ELECTED RETIRANT TRUSTEE/POLICE ALSO PRESENT CYNTHIA A. THOMAS DAVID CETLINSKI RYAN C. BIGELOW JOSEPH E. TURNER JANET S. LENEAR EXECUTIVE DIRECTOR ASSISTANT EXECUTIVE DIRECTOR INVESTMENT OFFICER GENERAL COUNSEL RECORDING SECRETARY EXCUSED MARK DIAZ PAMELA SCALES ELECTED TRUSTEE/POLICE/CHAIRMAN EX/OFFICIO TRUSTEE/BUDGET DIRECTOR ABSENT NONE

2 MEETING NUMBER 3016 THURSDAY DECEMBER 4, CHAIRMAN VICE CHAIRMAN FOLLOWING A VERBAL ROLL CALL, VICE CHAIRMAN MEETING AT. CONVENED THE DECEMBER 4, 2014 AGENDA BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE SIMON RESOLVED, THAT TODAY S AGENDA BE APPROVED AS PREPARED AND SUBMITTED BY THE BOARD S RECORDING SECRETARY: YEAS TRUSTEES ADAMS, GNATEK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 8 KLAUSNER & KAUFMAN DISCUSSED EXECUTIVE STAFF COMPENSATION, THE JOINT PERSONNEL COMMITTEE OF THE SYSTEMS, THE SYSTEM S BUDGET AND IT SECURITY AT LENGTH. TRUSTEE JOINED THE BOARD IN LISTENING TO DISCUSSION VIA PHONE CONFERENCE. SUGGESTED THAT THE BOARD ADOPT, DESIGNATE, CREATE OR UPGRADE THE FOLLOWING: ADOPT A JOINT PERSONNEL COMMITTEE WRITTEN CHARTER ADOPT A PERSONNEL GOVERNANCE POLICY

3 MEETING NUMBER 3016 THURSDAY DECEMBER 4, KLAUSNER & KAUFMAN - CONTINUED DESIGNATE A TRUSTEE SERVICES OFFICER CREATE AN EMPLOYEE SALARY SCALE UPGRADE IT SECURITY TRUSTEE ENTERED THE MEETING DURING DISCUSSION (AT 9:25 A.M.). THE BOARD EXCUSED AT 9:38 A.M. TRUSTEES AND ENTERED THE MEETING AT 9:40 A.M. AMERICAN REALTY ADVISORS DISCUSSED THE SYSTEM S REAL ESTATE SEPARATE ACCOUNT PORTFOLIO AND THE MGRA GENESIS VALUE FUND, L.P. OF COURTLAND PARTNERS (THE BOARD S REAL ESTATE CONSULTANT) JOINED THE BOARD IN LISTENING TO DISCUSSION VIA PHONE CONFERENCE. TAX RETURN AND ANNUAL FILINGS OF SUBSIDIARIES MANAGED BY AMERICAN REALTY ADVISORS BY TRUSTEE ORZECH SUPPORTED BY TRUSTEE SERDA WHEREAS, the Police and Fire Retirement System of the City of Detroit ( PFRS ) has historically structured investments with subsidiaries owning the systems interest for limitation of liability, among other reasons, and WHEREAS, historically, F. Logan Davidson ( Special Counsel ) has, through the PFRS outside accountant, submitted the annual tax returns as well as the respective state annual qualification documentation relative to the subsidiaries which are part of the portfolios managed by American Realty Advisors (the Board s Real Estate Manager ), and

4 MEETING NUMBER 3016 THURSDAY DECEMBER 4, TAX RETURN AND ANNUAL FILINGS OF SUBSIDIARIES MANAGED BY AMERICAN REALTY ADVISORS - CONTINUED, the CIO has noted the Board s Real Estate Manager has agreed to assume the responsibilities for the preparation and filings of the annual tax returns as well as the respective state annual qualification documentation at no additional costs, and, the Board has considered this matter in open session,, that the Board, pursuant to the recommendation of the CIO and in the interests of cost-savings, hereby transfers to the Board s Real Estate Manager the responsibilities for the preparation and filings of the annual tax returns as well as the respective state annual qualification documents, such services shall be performed at no additional costs to PFRS, and be it further, that Special Counsel shall transfer to the Real Estate Manager the requisite files, and be it further, that a copy of this resolution shall be forwarded to the Real Estate Manager and Special Counsel: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JENKINS, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 11 TRUSTEE ENTERED THE MEETING AT 9:45 A.M., AND TRUSTEE ENTERED AT 10:02 A.M. THE BOARD EXCUSED AT 10:55 A.M. AND RECESSED UNTIL 11:00 A.M. WILSHIRE CONSULTING AND DISCUSSED INVESTMENT MANAGER PERFORMANCE AND THEN EXCUSED THEMSELVES AT 1:02 P.M. TRUSTEE EXCUSED HERSELF AT 1:05 P.M.

5 MEETING NUMBER 3016 THURSDAY DECEMBER 4, DROP APPLICATIONS BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE SIMON, THAT THE APPLICATIONS WHICH ARE OUTLINED BELOW BE APPROVED: DROP APPLICATIONS NAME, TITLE, DEPARTMENT: PRENTIS MERCER OFFICER POLICE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: FREDERICK PERSON OFFICER - POLICE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: KIMBERLY WILLIAMS OFFICER - POLICE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: KEITH HOYE SERGEANT - FIRE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: DAVID MCLEOD SERGEANT - FIRE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: RUSSELL ZARRAS FIRE FIGHTER - FIRE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: DEVON WHITE SERGEANT - FIRE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: GILBERT MUNOZ, JR. OFFICER - POLICE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: ROSS FRANKLIN FIRE ENGINE OPERATOR - FIRE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE: NAME, TITLE, DEPARTMENT: PATRICK GORDON SERGEANT - FIRE RETIREMENT TYPE, PLAN: DROP - NEW SER. CR., EFF. DATE:

6 MEETING NUMBER 3016 THURSDAY DECEMBER 4, DROP APPLICATIONS - CONTINUED YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 12 CONFIRMATIONS BY TRUSTEE ORZECH SUPPORTED BY TRUSTEE GNATEK, THAT THE AND WHICH ARE DESIGNATED BELOW BE CONFIRMED: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 12 TRUSTEE RETURNED TO THE MEETING AT 1:11 P.M.

7 MEETING NUMBER 3016 THURSDAY DECEMBER 4, MANAGEMENT FEES, LEGAL FEES AND ADMINISTRATIVE AND OTHER EXPENSES BY TRUSTEE SIMON SUPPORTED BY TRUSTEE SINAGRA, THE BOARD HAS BEEN PRESENTED WITH A SCHEDULE OF, AND AND (SAID SCHEDULE IS REFERENCED BELOW), AND, THE BOARD HAS BEEN REQUESTED TO APPROVE PAYMENT OF SAID MANAGEMENT FEES, LEGAL FEES AND ADMINISTATIVE AND OTHER EXPENSES, THEREFORE BE IT, THAT SUBJECT TO FINAL APPROVAL OF ALL TRANSACTION DOCUMENTS BY THE BOARD S GENERAL COUNSEL AND SUBJECT TO STAFF AUDIT, THE BOARD APPROVES PAYMENT OF SAID MANAGEMENT FEES, LEGAL FEES AND ADMINISTRATIVE AND OTHER EXPENSES:

8 MEETING NUMBER 3016 THURSDAY DECEMBER 4, MANAGEMENT FEES, LEGAL FEES AND ADMINISTRATIVE AND OTHER EXPENSES - CONTINUED

9 MEETING NUMBER 3016 THURSDAY DECEMBER 4, MANAGEMENT FEES, LEGAL FEES AND ADMINISTRATIVE AND OTHER EXPENSES - CONTINUED YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13

10 MEETING NUMBER 3016 THURSDAY DECEMBER 4, REFUNDS OF ACCUMULATED CONTRIBUTIONS BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE SINAGRA, THAT THE CONTRIBUTIONS TO THE ANNUITY SAVINGS FUND BY MEMBERS OF THE POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT, AS SET FORTH ON LIST, IN THE AMOUNT OF, INCLUDING INTEREST, BE REFUNDED PENDING AUDIT BY RETIREMENT SYSTEM ACCOUNTING STAFF: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG DEFINED CONTRIBUTION PLAN (EMPLOYEE LOAN PROGRAM) BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE SIMON, THAT THE DEFINED CONTRIBUTION PLAN LOAN REQUEST LISTS SUBMITTED THIS DATE BE APPROVED AND THE AMOUNTS OF $22, AND BE DISBURSED PENDING AUDIT BY RETIREMENT SYSTEM ACCOUNTING STAFF: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 MINUTES OF OCTOBER 23, 2014 AND NOVEMBER 6, 2014 BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE SIMON, THAT THE MINUTES OF THE MEETING HELD, BE APPROVED AS RECORDED AND SUBMITTED BY THE BOARD S RECORDING SECRETARY, AND BE IT FURTHER

11 MEETING NUMBER 3016 THURSDAY DECEMBER 4, MINUTES OF OCTOBER 23, 2014 AND NOVEMBER 6, CONTINUED, THAT THE MINUTES OF THE MEETING HELD, BE APPROVED AS RECORDED AND SUBMITTED BY THE BOARD S RECORDING SECRETARY: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 ASSISTANT EXECUTIVE DIRECTOR S REPORTS ASSISTANT EXECUTIVE DIRECTOR ASKED THE BOARD TO APPROVE AND EXECUTE THE SYSTEM S AUTHORIZED SIGNATORY LIST, AS WELL AS APPROVE VARIOUS 2015 CONFERENCES. ALSO INFORMED THE BOARD OF WRITTEN REQUEST TO MEET WITH THE BOARD WITH RESPECT TO HIS PARTICIPATION IN THE SYSTEM S DROP (DEFERRED RETIREMENT OPTION PLAN). PFRS AUTHORIZED SIGNATORY LIST BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE SIMON, That all contracts, documents, vouchers and legal papers in conjunction with any investment transaction or disposition of any investment made by the Board of Trustees of the Police and Fire Retirement System, pursuant to Title IX, Chapter VII, Article VIII of the City of Detroit Charter and continued in effect by Article II, Section 102 of the January 1, 1997 City of Detroit Charter, be executed by any two (2) of the following designated parties who are hereby authorized to sign on behalf of the Board of Trustees, provided, however, that at least one (1) of the two (2) authorized parties signing on behalf of the Board shall be an elected Trustee: CYNTHIA A. THOMAS, EXECUTIVE DIRECTOR DAVID CETLINSKI, ASSISTANT EXECUTIVE DIRECTOR DEBORAH WILKERSON, ASSISTANT EXECUTIVE DIRECTOR MARILYN ROC BERDIJO, MANAGER Il

12 MEETING NUMBER 3016 THURSDAY DECEMBER 4, PFRS AUTHORIZED SIGNATORY LIST - CONTINUED ANGELA KEELER, MANAGER I LAMONICA ARRINGTON-CABEAN, MANAGER I MARK DIAZ, ELECTED TRUSTEE MATTHEW GNATEK, ELECTED TRUSTEE SEAN P. NEARY, ELECTED TRUSTEE GEORGE ORZECH, ELECTED TRUSTEE JEFFREY M. PEGG, ELECTED TRUSTEE JOHN SERDA, ELECTED TRUSTEE MICHAEL A. SIMON, ELECTED TRUSTEE (RETIRED) LOUIS M. SINAGRA, ELECTED TRUSTEE (RETIRED) JUNE ADAMS, EX/OFFICIO TRUSTEE/CORPORATION COUNSEL ALTERNATE MICHAEL DUGGAN, EX/OFFICIO TRUSTEE/HONORABLE MAYOR MELVIN BUTCH HOLLOWELL, EX/OFFICIO TRUSTEE/CORPORATION COUNSEL ANGELA JAMES, EX/OFFICIO TRUSTEE/MAYORAL DESIGNEE (POLICE) MICHAEL JAMISON, EX/OFFICIO TRUSTEE/DEPUTY FINANCE DIRECTOR EDSEL JENKINS, EX/OFFICIO TRUSTEE/MAYORAL DESIGNEE (FIRE) BRENDA JONES, EX/OFFICIO TRUSTEE/CITY COUNCIL PRESIDENT JOHN NAGLICK, EX/OFFICIO TRUSTEE/INTERIM TREASURER PAMELA SCALES, EX/OFFICIO TRUSTEE/BUDGET DIRECTOR YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 CONFERENCES BY TRUSTEE JENKINS SUPPORTED BY TRUSTEE GNATEK, THAT THE BOARD APPROVE THE ATTENDANCE OF ALL TRUSTEES, THE EXECUTIVE DIRECTOR, THE ASSISTANT EXECUTIVE DIRECTOR AND GENERAL COUNSEL AT THE BELOW-DESIGNATED CONFERENCES, AND BE IT FURTHER

13 MEETING NUMBER 3016 THURSDAY DECEMBER 4, CONFERENCES - CONTINUED, THAT THE BOARD APPROVE EXPENDITURES FOR ALL TRUSTEES, THE EXECUTIVE DIRECTOR, THE ASSISTANT EXECUTIVE DIRECTOR AND GENERAL COUNSEL TO ATTEND SAID CONFERENCES, AND BE IT FURTHER, THAT A COPY OF SAID CONFERENCE BROCHURES BE PROVIDED TO RETIREMENT SYSTEM STAFF MEMBER : CONFERENCES/MEETINGS/SEMINARS/FORUMS LOCATION/S DATE/S APPROVAL DATE KLAUSNER & KAUFMAN EDUCATIONAL CONFERENCE FT. LAUDERDALE, FLORIDA MARCH 15, 2015 MARCH 18, 2015 DECEMBER 4, 2014 GOVERNMENT FINANCE OFFICERS ASSOCIATION CONFERENCE ( ) INTERNATIONAL FOUNDATION OF EMPLOYEE BENEFIT PLANS CONFERENCE ( ) MICHIGAN ASSOCIATION OF PUBLIC EMPLOYEES RETIREMENT SYSTEMS CONFERENCE ( ) NATIONAL ASSOCIATION OF POLICE ORGANIZATIONS CONFERENCE ( ) NATIONAL CONFERENCE ON PUBLIC EMPLOYEES RETIREMENT SYSTEMS CONFERENCE ( ) VARIOUS VARIOUS DECEMBER 04, 2014 VARIOUS VARIOUS DECEMBER 04, 2014 VARIOUS VARIOUS DECEMBER 04, 2014 VARIOUS VARIOUS DECEMBER 04, 2014 VARIOUS VARIOUS DECEMBER 04, 2014 YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13

14 MEETING NUMBER 3016 THURSDAY DECEMBER 4, CONFERENCE BY TRUSTEE JENKINS SUPPORTED BY TRUSTEE GNATEK, THAT THE BOARD APPROVE THE ATTENDANCE OF ALL TRUSTEES, THE EXECUTIVE DIRECTOR, THE ASSISTANT EXECUTIVE DIRECTOR AND GENERAL COUNSEL AT THE BELOW-DESIGNATED CONFERENCE, AND BE IT FURTHER, THAT THE BOARD APPROVE EXPENDITURES FOR ALL TRUSTEES, THE EXECUTIVE DIRECTOR, THE ASSISTANT EXECUTIVE DIRECTOR AND GENERAL COUNSEL TO ATTEND SAID CONFERENCE, AND BE IT FURTHER, THAT A COPY OF SAID CONFERENCE BROCHURE BE PROVIDED TO RETIREMENT SYSTEM STAFF MEMBER : KLAUSNER & KAUFMAN S EDUCATIONAL CONFERENCE FT. LAUDERDALE, FLORIDA MARCH 15, 2015 MARCH 18, 2015 YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 CRAIG DOUGHERTY PENSION NUMBER AT THE DIRECTION OF THE VICE CHAIR, WILL BE SCHEDULED TO APPEAR BEFORE THE BOARD ON DECEMBER 18, 2014 TO DISCUSS HIS PARTICIPATION IN THE DROP (DEFERRED RETIREMENT OPTION PLAN,) PER HIS DECEMBER 1, 2014 WRITTEN REQUEST. EXECUTIVE DIRECTOR S REPORTS EXECUTIVE DIRECTOR AUDIT. BRIEFLY DISCUSSED THE SYSTEM S

15 MEETING NUMBER 3016 THURSDAY DECEMBER 4, INVESTMENT OFFICER S REPORTS INVESTMENT OFFICER DISCUSSED HEDGE FUND ALLOCATION AND THE SYSTEM S INVESTMENT POLICY STATEMENT (WHICH HE ASKED THE BOARD TO APPROVE). APPROVAL OF PFRS INVESTMENT POLICY STATEMENT BY TRUSTEE NEARY SUPPORTED BY TRUSTEE GNATEK, in October 2014, the Police and Fire Retirement System and its Chief Investment Officer ( CIO ) distributed a draft PFRS Investment Policy Statement which was drafted by Wilshire Consulting (the PFRS Consultant ) for review and subsequent approval, and, General Counsel has submitted to the PFRS Consultant and its CIO certain comments to the draft PFRS Investment Policy, and, this matter has been considered in open session,, that consistent with a best practice approach and the Board s fiduciary obligation, the Board accepts the recommendations of the PFRS Consultant and PFRS CIO, and approves the PFRS Investment Policy Statement subject to the General Counsel s comments, and be it further, that a copy of this resolution is provided to the PFRS Consultant and the CIO: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 PUBLIC RELATIONS ADVISOR S REPORTS PUBLIC RELATIONS ADVISOR DISCUSSED THE CITY S INCOME STABILIZATION FUND AND THE TOWN HALL MEETINGS THE GENERAL BOARD WILL HOLD REGARDING THE CITY S PLAN OF ADJUSTMENT.

16 MEETING NUMBER 3016 THURSDAY DECEMBER 4, LOBBYIST S REPORTS LOBBYIST DISCUSSED SENATE BILL 211 (CANCER PRESUMPTION BILL) AND SENATE BILL 1105 (ROMULUS DEEP DISPOSAL WELL). GENERAL COUNSEL S REPORTS GENERAL COUNSEL WITH THE BOARD: ADDRESSED THE FOLLOWING MATTERS CITY OF DETROIT CHAPTER 9 BANKRUPTCY PROCEEDINGS WALKER & DUNLOP S REAL ESTATE OPPORTUNITY FUND I, LLC PFRS NOVEMBER 25, 2014 RESPONSE TO THE FOIA REQUEST OF THE DETROIT NEWS TIMELINES GOVERNING POLICE/FIRE RETIRANT ELECTIONS ATTORNEY FEE STRUCTURE PFRS/GRS JOINT PERSONNEL COMMITTEE EXECUTIVE STAFF COMPENSATION THE SYSTEM S INVESTMENT POLICY STATEMENT

17 MEETING NUMBER 3016 THURSDAY DECEMBER 4, APPROVAL OF TIMELINE GOVERNING POLICE RETIRANT ELECTION BY TRUSTEE ORZECH SUPPORTED BY TRUSTEE SIMON, on November 8, 2011, the voters of the City of Detroit approved a proposed revised Charter of the City of Detroit, which became effective January 1, 2012 ( Charter ). The Charter, at Section (2)(h), provides that the Board of Trustees of the police and fire retirement system shall consist of... [t]wo retirants, receiving benefits under the retirement system, who shall be residents of the city, one elected by retired firefighters and one elected by retired police officers under procedures established by ordinance; and, on November 12, 2014, the Eighth Amended Plan For Adjustment Of Debts Of The City Of Detroit was confirmed by order of the United States Bankruptcy Court for the Eastern District of Michigan in the City of Detroit s Chapter 9 bankruptcy matter (In re, City of Detroit, Michigan), Case No ; and, the Eighth Amended Plan For Adjustment Of Debts Of The City Of Detroit ( Plan of Adjustment ) at Exhibit I.A. 254a, includes the Combined Plan For The Police And Fire Retirement System Of The City Of Detroit, Michigan became effective on July 1, 2014 ( PFRS Plan); and, the PFRS Plan at Section 1.5(3) includes Board of Trustees; Scheduling of Elections for Active and Retiree Trustees and provides, Sec Board of Trustees; Scheduling of Elections for Active and Retiree Trustees (3) A special election for Retiree Trustees shall be held as soon as practicable after the Plan of Adjustment is confirmed. Unless a Retiree Trustee elected by reason of this special election resigns or is removed from the position of Trustee in accordance with the terms of the Combined Plan Document, a Retiree elected to the office of Trustee in the special election shall be eligible to serve a full term of three (3) years from the date of the special election, plus such period of time until the last day of June that follows the third anniversary of the special election, at which time an election for Retiree Trustees shall be held in accordance with Section 1.6., and, pursuant to the Charter, Plan of Adjustment and PFRS Plan, the Board of Trustees of the Police and Fire Retirement System of the City of Detroit ( Board of Trustees ) hereby approve the timeline governing the election of a police retirant trustee to the Board of Trustees ( Timeline Governing Police Retirant Trustee Election ); and

18 MEETING NUMBER 3016 THURSDAY DECEMBER 4, APPROVAL OF TIMELINE GOVERNING POLICE RETIRANT ELECTION - CONTINUED, the staff and counsel of the Board of Trustees compiled Timeline Governing Police Retirant Trustee Election; and, the staff and counsel of the Board of Trustees have presented to the Board of Trustees and recommended for approval the Timeline Governing Police Retirant Trustee Election; and WHEREAS, the Board of Trustees has considered this matter in open session; therefore be it, the Board of Trustees have received, reviewed and hereby approve the Timeline Governing Police Retirant Trustee Election; and be it further, that the staff of the Board of Trustees shall take all appropriate action necessary to effectuate the Board of Trustees intent in adopting the Timeline Governing Police Retirant Trustee Election; and be it further, that the foregoing Timeline Governing Police Retirant Trustee Election shall be effective as of December 4, 2014, and be it further, that the Executive Director shall place or cause to be placed upon the Police and Fire Retirement System of the City of Detroit website a pdf. version of the Timeline Governing Police Retirant Trustee Election: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13

19 MEETING NUMBER 3016 THURSDAY DECEMBER 4, APPROVAL OF TIMELINE GOVERNING FIRE RETIRANT ELECTION BY TRUSTEE SIMON SUPPORTED BY TRUSTEE ADAMS, on November 8, 2011, the voters of the City of Detroit approved a proposed revised Charter of the City of Detroit, which became effective January 1, 2012 ( Charter ). The Charter, at Section (2)(h), provides that the Board of Trustees of the police and fire retirement system shall consist of... [t]wo retirants, receiving benefits under the retirement system... one elected by retired firefighters and one elected by retired police officers under procedures established by ordinance; and, on November 12, 2014, the Eighth Amended Plan For Adjustment Of Debts Of The City Of Detroit was confirmed by order of the United States Bankruptcy Court for the Eastern District of Michigan in the City of Detroit s Chapter 9 bankruptcy matter (In re, City of Detroit, Michigan), Case No ; and, the Eighth Amended Plan For Adjustment Of Debts Of The City Of Detroit ( Plan of Adjustment ), at Exhibit I.A. 254a, includes the Combined Plan For The Police And Fire Retirement System Of The City Of Detroit, Michigan which became effective July 1, 2014 ( PFRS Plan )., the PFRS Plan at Section 1.5(3) includes Board of Trustees; Scheduling of Elections for Active and Retiree Trustees and provides, Sec Board of Trustees; Scheduling of Elections for Active and Retiree Trustees (3) A special election for Retiree Trustees shall be held as soon as practicable after the Plan of Adjustment is confirmed. Unless a Retiree Trustee elected by reason of this special election resigns or is removed from the position of Trustee in accordance with the terms of the Combined Plan Document, a Retiree elected to the office of Trustee in the special election shall be eligible to serve a full term of three (3) years from the date of the special election, plus such period of time until the last day of June that follows the third anniversary of the special election, at which time an election for Retiree Trustees shall be held in accordance with Section 1.6; and, pursuant to the Charter, Plan of Adjustment and PFRS Plan, the Board of Trustees of the Police and Fire Retirement System of the City of Detroit ( Board of Trustees ) hereby approve the timeline governing the election of a fire retirant trustee to the Board of Trustees ( Timeline Governing Fire Retirant Trustee Election ); and, the staff and counsel of the Board of Trustees compiled the Timeline Governing Fire Retirant Trustee Election; and

20 MEETING NUMBER 3016 THURSDAY DECEMBER 4, APPROVAL OF TIMELINE GOVERNING FIRE RETIRANT ELECTION - CONTINUED, the staff and counsel of the Board of Trustees have presented to the Board of Trustees and recommended for approval the Timeline Governing Fire Retirant Trustee Election; and be it, the Board of Trustees has considered this matter in open session; therefore, the Board of Trustees have received, reviewed and hereby approve the Timeline Governing Fire Retirant Trustee Election; and be it further, that the staff of the Board of Trustees shall take all appropriate action necessary to effectuate the Board of Trustees intent in adopting the Timeline Governing Fire Retirant Trustee Election; and be it further, that the foregoing Timeline Governing Fire Retirant Trustee Election shall be effective as of December 4, 2014, and be it further, that the Executive Director shall place or cause to be placed upon the Police and Fire Retirement System of the City of Detroit website a pdf. version of the Timeline Governing Fire Retirant Trustee Election: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 TRUSTEE JONES EXCUSED HERSELF AT 2:20 P.M., AND TRUSTEE JENKINS EXCUSED HIMSELF AT 2:32 P.M. CURRENT AND FUTURE FIRE DEPARTMENT MEMBERS BY TRUSTEE ORZECH SUPPORTED BY TRUSTEE NEARY, THAT THE BOARD S MOTION REGARDING CURRENT AND FUTURE FIRE DEPARTMENT MEMBERS BEING REMOVED FROM THE SYSTEM S DROP PAYROLL ONCE THEY REACH AGE 60, WHICH WAS TABLED OCTOBER 23, 2014, BE REMOVED FROM THE TABLE:

21 MEETING NUMBER 3016 THURSDAY DECEMBER 4, CURRENT AND FUTURE FIRE DEPARTMENT MEMBERS - CONTINUED A ROLL CALL VOTE WAS TAKEN AS FOLLOWS: YEAS TRUSTEES ADAMS, GNATEK, JAMES, JAMISON, JENKINS, JONES, NAGLICK, NEARY, ORZECH, SERDA, SIMON, SINAGRA AND VICE CHAIRMAN PEGG 13 FOLLOWING IS THE BOARD S OCTOBER 23, 2014 MOTION REGARDING CURRENT AND FUTURE FIRE DEPARTMENT MEMBERS BEING REMOVED FROM THE SYSTEM S DROP PAYROLL ONCE THEY REACH AGE 60: CURRENT AND FUTURE FIRE DEPARTMENT MEMBERS BY TRUSTEE PEGG SUPPORTED BY TRUSTEE NEARY, FIRE DEPARTMENT MEMBERS HAVE A MANDATORY RETIREMENT AT AGE 60 (THE MANDATORY AGE ), AND, IT HAS COME TO THE BOARD S ATTENTION THAT CERTAIN FIRE DEPARTMENT MEMBERS WHO ARE DROP PARTICIPANTS HAVE NOT BEEN REMOVED FROM THE SYSTEM S DROP PAYROLL AFTER REACHING AGE 60, AND, CONSISTENT WITH THE PROVISIONS OF THE MANDATORY RETIREMENT, SUCH MEMBERS SHOULD BE IMMEDIATELY REMOVED FROM THE SYSTEM S DROP PAYROLL, AND BE IT, THIS MATTER HAS BEEN DISCUSSED IN OPEN SESSION, THEREFORE RESOLVED, THAT ANY FIRE DEPARTMENT MEMBER WHO IS A DROP PARTICIPANT AND HAS REACHED THE MANDATORY RETIREMENT AGE (AGE 60) SHALL BE REMOVED FROM THE SYSTEM S DROP PAYROLL, AND THE SYSTEM SHALL NOTIFY EACH SUCH PARTICIPANT IN WRITING AS TO THE BOARD S ACTION: VICE CHAIRMAN PEGG RELINQUISHED THE CHAIR AND WITHDREW HIS MOTION. TRUSTEE NEARY WITHDREW HIS SUPPORT OF VICE CHAIRMAN PEGG S MOTION.

22 MEETING NUMBER 3016 THURSDAY DECEMBER 4, CURRENT AND FUTURE FIRE DEPARTMENT MEMBERS - CONTINUED VICE CHAIRMAN PEGG THEN RESUMED THE CHAIR. PUBLIC FORUM AT VICE CHAIRMAN DECLARED THE MEETING IN OPEN FORUM FOR GENERAL DISCUSSION BY THE PUBLIC ATTENDING THE MEETING. ADJOURNMENT THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, VICE CHAIRMAN ADJOURNED THE MEETING AT UNTIL THURSDAY,, AT, IN THE CONFERENCE ROOM OF THE RETIREMENT SYSTEMS, ONE DETROIT CENTER, 500 WOODWARD AVENUE, 30 TH FLOOR, DETROIT, MICHIGAN RESPECTFULLY SUBMITTED, DAVID CETLINSKI, ASSISTANT EXECUTIVE DIRECTOR