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

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1 JOURNAL OF PROCEEDINGS BOARD OF TRUSTEES OF THE POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT 9:00 A.M. IN THE CONFERENCE ROOM OF THE RETIREMENT SYSTEMS ONE DETROIT CENTER 500 WOODWARD AVENUE 30 TH FLOOR (SUITE 3000) DETROIT, MICHIGAN PRESENT JUNE ADAMS MARK DIAZ MATTHEW GNATEK MICHAEL JAMISON EDSEL JENKINS JOHN NAGLICK PORTIA ROBERSON GREGORY TROZAK JOHN G. TUCKER EX/OFFICIO TRUSTEE/ALTERNATE-CORPORATION COUNSEL ELECTED TRUSTEE/POLICE ELECTED TRUSTEE/POLICE EX/OFFICIO TRUSTEE/DEPUTY FINANCE DIRECTOR EX/OFFICIO TRUSTEE/FIRE/MAYORAL DESIGNEE EX/OFFICIO TRUSTEE/INTERIM TREASURER EX/OFFICIO TRUSTEE/ALTERNATE-HONORABLE MAYOR/VICE- CHAIRPERSON ELECTED RETIRANT TRUSTEE/POLICE ELECTED RETIRANT TRUSTEE/FIRE ALSO PRESENT CYNTHIA A. THOMAS RONALD A. KING JANET S. LENEAR EXECUTIVE DIRECTOR INTERIM GENERAL COUNSEL RECORDING SECRETARY EXCUSED ANGELA R. JAMES BRENDA JONES SEAN P. NEARY JEFFREY PEGG PAMELA SCALES JOHN SERDA TRACY THOMAS EX/OFFICIO TRUSTEE/POLICE/MAYORAL DESIGNEE EX/OFFICIO TRUSTEE/CITY COUNCIL PRESIDENT ELECTED TRUSTEE/FIRE ELECTED TRUSTEE/FIRE/CHAIRPERSON EX/OFFICIO TRUSTEE/BUDGET DIRECTOR ELECTED TRUSTEE/POLICE ELECTED TRUSTEE/FIRE ALSO EXCUSED DAVID CETLINSKI RYAN C. BIGELOW ASSISTANT EXECUTIVE DIRECTOR CHIEF INVESTMENT OFFICER

2 MEETING NUMBER 3051 THURSDAY AUGUST 6, CHAIRPERSON VICE CHAIRPERSON FOLLOWING A VERBAL ROLL CALL, VICE CHAIRPERSON MEETING TO ORDER AT CALLED THE AUGUST 6, 2015 AGENDA BY TRUSTEE DIAZ SUPPORTED BY TRUSTEE GNATEK, THAT TODAY S AUGUST 6, 2015 AGENDA BE APPROVED AS PREPARED AND PRESENTED BY THE BOARD S RECORDING SECRETARY: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON 8 DROP APPLICATION BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE DIAZ, THAT THE DROP APPLICATION WHICH IS REFERENCED BELOW BE APPROVED: DROP APPLICATION NAME, TITLE, DEPARTMENT: JERRY JONES OFFICER - POLICE RETIREMENT TYPE, PLAN: DROP - NEW SERVICE CREDIT, EFFECTIVE DATE: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON 8

3 MEETING NUMBER 3051 THURSDAY AUGUST 6, RETIREMENT APPLICATIONS BY TRUSTEE DIAZ SUPPORTED BY TRUSTEE GNATEK, THAT THE RETIREMENT APPLICATIONS WHICH ARE OUTLINED BELOW BE APPROVED: RETIREMENT APPLICATIONS NAME, TITLE, DEPARTMENT: KYM JOHNSON OFFICER - POLICE RETIREMENT TYPE, PLAN: EARLY RETIREMENT - NEW SERVICE CREDIT, EFFECTIVE DATE: NAME, TITLE, DEPARTMENT: PAMELA HICKS OFFICER - POLICE RETIREMENT TYPE, PLAN: SERVICE - NEW SERVICE CREDIT, EFFECTIVE DATE: NAME, TITLE, DEPARTMENT: KAREN FRABOTTA LIEUTENANT - POLICE RETIREMENT TYPE, PLAN: CONVERSION FROM DUTY - NEW SERVICE CREDIT, EFFECTIVE DATE: NAME, TITLE, DEPARTMENT: ALFRED MOORE OFFICER - POLICE RETIREMENT TYPE, PLAN: CONVERSION FROM DUTY - NEW SERVICE CREDIT, EFFECTIVE DATE: NAME, TITLE, DEPARTMENT: CANDICE PETERS OFFICER - POLICE RETIREMENT TYPE, PLAN: CONVERSION FROM DUTY - NEW SERVICE CREDIT, EFFECTIVE DATE: NAME, TITLE, DEPARTMENT: PHILLIP ROGERS OFFICER - POLICE RETIREMENT TYPE, PLAN: CONVERSION FROM DUTY - NEW SERVICE CREDIT, EFFECTIVE DATE: NAME, TITLE, DEPARTMENT: DANIEL TAYLOR FIRE FIGHTER - FIRE RETIREMENT TYPE, PLAN: CONVERSION FROM DUTY - NEW SERVICE CREDIT, EFFECTIVE DATE: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON 8

4 MEETING NUMBER 3051 THURSDAY AUGUST 6, DISBURSEMENTS BY TRUSTEE JAMISON SUPPORTED BY TRUSTEE GNATEK, THAT THE DISBURSEMENTS WHICH ARE OUTLINED BELOW BE APPROVED:

5 MEETING NUMBER 3051 THURSDAY AUGUST 6, DISBURSEMENTS - CONTINUED

6 MEETING NUMBER 3051 THURSDAY AUGUST 6, DISBURSEMENTS - CONTINUED YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON 8

7 MEETING NUMBER 3051 THURSDAY AUGUST 6, RECEIPTS THE FOLLOWING RECEIPTS WERE ACKNOWLEDGED BY THE BOARD: REFUNDS OF ACCUMULATED CONTRIBUTIONS BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE JAMISON, THAT THE CONTRIBUTIONS TO THE ANNUITY SAVINGS FUND BY MEMBERS OF THE POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT, INCLUDING INTEREST, BE REFUNDED PENDING AUDIT BY RETIREMENT SYSTEM ACCOUNTING STAFF: LIST NUMBER $276, LIST NUMBER $238, YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON 8

8 MEETING NUMBER 3051 THURSDAY AUGUST 6, DEFINED CONTRIBUTION PLAN (EMPLOYEE LOAN PROGRAM) BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE DIAZ, THAT THE DEFINED CONTRIBUTION PLAN LOAN REQUEST LISTS SUBMITTED THIS DATE BE APPROVED AND THE REQUESTED AMOUNTS BE DISBURSED PENDING AUDIT BY RETIREMENT SYSTEM ACCOUNTING STAFF: LIST #1 $46, LIST #2 $40, YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON 8 TRUSTEE ENTERED THE MEETING AT 9:30 A.M. MINUTES OF JUNE 25, 2015 BY TRUSTEE NAGLICK SUPPORTED BY TRUSTEE TROZAK, THAT THE MINUTES OF THE MEETING HELD THURSDAY, JUNE 25, 2015 BE APPROVED AS RECORDED AND SUBMITTED BY THE BOARD S RECORDING SECRETARY: YEAS TRUSTEES ADAMS, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND AND VICE CHAIRPERSON ROBERSON 7 ABSTENTIONS TRUSTEES DIAZ AND GNATEK 2

9 MEETING NUMBER 3051 THURSDAY AUGUST 6, ASSISTANT EXECUTIVE DIRECTOR S REPORTS IN ASSISTANT EXECUTIVE DIRECTOR STEAD (MR. CETLINSKI IS EXCUSED FROM TODAY S MEETING), EXECUTIVE DIRECTOR HAD NOTHING TO REPORT. EXECUTIVE DIRECTOR S REPORTS EXECUTIVE DIRECTOR MATTERS: DISCUSSED THE FOLLOWING : RETIREMENT SYSTEM MANAGEMENT AND ACCOUNTING STAFF WILL MEET WITH THE AUDITORS MONDAY TO SCHEDULE AND SET PARAMETERS FOR THE CURRENT AUDIT (WHICH MUST BE COMPLETED BY YEAR S END); AND WILL THEN MEET WITH FIRST INDEPENDENCE BANK ON TUESDAY. : DISCUSSED THE PERSONNEL BUDGET OF THE SYSTEMS WHICH THE BOARD APPROVED ON JULY 23, PUBLIC RELATIONS DIRECTOR S REPORTS PUBLIC RELATIONS DIRECTOR MEETING. IS EXCUSED FROM TODAY S LOBBYIST S REPORTS LOBBYIST LEGISLATIVE UPDATE. PROVIDED THE BOARD WITH A BRIEF MICHIGAN PFRS-MANN 1100-GP, LLC/7850 E. JEFFERSON AVENUE CORPORATION SPECIAL LEGAL COUNSEL DISCUSSED MANN 1100 AND 7850 E. JEFFERSON AVENUE CORPORATION.

10 MEETING NUMBER 3051 THURSDAY AUGUST 6, PFRS-MANN 1100-GP, LLC: TEXAS ANNUAL REPORTS BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE DIAZ, THE POLICE AND FIRE RETIREMENT SYSTEM IS THE SOLE MEMBER OF PFRS-MANN 1100-GP, LLC ( COMPANY ), AND, THE BOARD HAS BEEN REQUESTED TO APPROVE THE EXECUTION OF: (I) A TEXAS FRANCHISE TAX PUBLIC INFORMATION REPORT, (II) A TEXAS FRANCHISE TAX NO TAX DUE INFORMATION REPORT, AND (III) A TEXAS FRANCHISE TAX OWNERSHIP INFORMATION REPORT (ALL DATED AUGUST 6, 2015) BY THE POLICE AND FIRE RETIREMENT SYSTEM AS THE SOLE MEMBER OF THE COMPANY, AND, THE EXECUTION OF SAID DOCUMENTS HAS BEEN RECOMMENDED BY THE BOARD S SPECIAL LEGAL COUNSEL, F. LOGAN DAVIDSON, P.C., AND, THE EXECUTION OF SAID DOCUMENTS HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE BOARD S INTERIM GENERAL COUNSEL, AND THE EXECUTION OF SAID DOCUMENTS IS CONSISTENT WITH PRIOR ACTION OF THE BOARD, THEREFORE BE IT, THAT SAID DOCUMENTS BE EXECUTED BY TWO (2) AUTHORIZED SIGNATORIES ON BEHALF OF THE COMPANY; AND BE IT FURTHER, THAT THE ACCOUNTING DIVISION OF THE PFRS RETAIN A COPY OF SAID EXECUTED DOCUMENTS; AND BE IT FURTHER RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO SPECIAL LEGAL COUNSEL F. LOGAN DAVIDSON, P.C.: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON - 9

11 MEETING NUMBER 3051 THURSDAY AUGUST 6, PFRS-MANN 1100-GP, LLC: TEXAS ANNUAL REPORTS THE BOARD OF TRUSTEES HAS BEEN MADE AWARE OF THE EXECUTION OF: (I) A TEXAS FRANCHISE TAX PUBLIC INFORMATION REPORT, (II) A TEXAS FRANCHISE TAX NO TAX DUE INFORMATION REPORT, AND (III) A TEXAS FRANCHISE TAX OWNERSHIP INFORMATION REPORT (ALL DATED AUGUST 6, 2015) BY THE POLICE AND FIRE RETIREMENT SYSTEM AS THE SOLE MEMBER OF THE COMPANY. DUTY-NON-DUTY DISABILITY RETIREMENT APPLICATIONS FILED BY POLICE DEPARTMENT TRUSTEE ASKED THAT A CITY REPRESENTATIVE BE REQUESTED TO APPEAR BEFORE THE BOARD FOR THE PURPOSE OF EXPLAINING THE CITY S POSITION, RE: DUTY/NON-DUTY DISABILITY RETIREMENT APPLICATIONS FILED BY THE POLICE DEPARTMENT. NO ACTION WILL BE TAKEN REGARDING THIS MATTER UNTIL THE BOARD HAS HEARD THE CITY S POSITION. INTERIM GENERAL COUNSEL S REPORTS INTERIM GENERAL COUNSEL ASKED THE BOARD TO ENTER INTO CLOSED SESSION TO DISCUSS THE FOLLOWING MATTERS: 1) ATTORNEY/CLIENT PRIVILEGED MATTERS 2) MEDICAL INFORMATION REGARDING THE POLICE DEPARTMENT S APPLICATIONS FOR POLICE OFFICER NON-DUTY DISABILITY RETIREMENT AND DUTY DISABILITY RETIREMENT CLOSED SESSION BY TRUSTEE GNATEK SUPPORTED BY TRUSTEE ADAMS, THAT THE BOARD ENTER INTO CLOSED SESSION FOR THE PURPOSE OF DISCUSSING THE FOLLOWING MATTERS: 1) ATTORNEY/CLIENT PRIVILEGED MATTERS

12 MEETING NUMBER 3051 THURSDAY AUGUST 6, CLOSED SESSION - CONTINUED 2) MEDICAL INFORMATION REGARDING THE POLICE DEPARTMENT S APPLICATIONS FOR POLICE OFFICER NON-DUTY DISABILITY RETIREMENT AND DUTY DISABILITY RETIREMENT A ROLL CALL VOTE WAS TAKEN AS FOLLOWS: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON - 9 THE BOARD ENTERED INTO CLOSED SESSION AT OPEN SESSION BY TRUSTEE DIAZ SUPPORTED BY TRUSTEE ADAMS, THAT THE BOARD RETURN TO OPEN SESSION: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON - 9 THE BOARD RETURNED TO OPEN SESSION AT PFRS, ET AL, V. ROY DIXON, JR. BY TRUSTEE DIAZ SUPPORTED BY TRUSTEE GNATEK, the Board is in receipt of a Confidential Attorney-Client Privileged Memorandum from Special Counsel Jordan S. Bolton dated July 29, 2015, concerning legal strategy concerning certain litigation pending in the U.S. Bankruptcy Court for the Northern District of Georgia, to which the Retirement System is a plaintiff as part of an adversary proceeding against defendant Roy Dixon Jr., and

13 MEETING NUMBER 3051 THURSDAY AUGUST 6, PFRS, ET AL, V. ROY DIXON, JR. - CONTINUED, the Board s Special Counsel s Memorandum makes certain confidential recommendations to the Board regarding legal strategy in this matter, and, the Board has considered Special Counsel s confidential recommendations in closed session and been advised by Interim General Counsel regarding the same, and, the need for action on Special Counsel s confidential recommendations has been discussed in open session, therefore be it, that the Board accepts the confidential recommendations of Special Counsel as set forth in the Memorandum of July 29, 2015, and authorizes Special Counsel to take action required to carry out those recommendations, and be it further, that a copy of this resolution will be delivered to Special Counsel: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON - 9 REPORT OF SPECIAL LEGAL COUNSEL BY TRUSTEE DIAZ SUPPORTED BY TRUSTEE GNATEK, SPECIAL LEGAL COUNSEL IN THIS MATTER, RACINE & ASSOCIATES, HAS REPORTED ON THE STATUS OF THE MATTER OF THE U.S. BANK LITIGATION, AND, SPECIAL LEGAL COUNSEL HAS PRESENTED THE BOARD WITH INFORMATION RELATING TO THE LITIGATION AND THE BOARD S RIGHTS IMPACTED THEREIN, AND, THE BOARD HAS DISCUSSED THIS MATTER, THEREFORE BE IT

14 MEETING NUMBER 3051 THURSDAY AUGUST 6, REPORT OF SPECIAL LEGAL COUNSEL - CONTINUED, THAT THE BOARD AUTHORIZES SPECIAL LEGAL COUNSEL TO PERMIT THE LITIGATION TO PROCEED WITHOUT FURTHER INPUT FROM THE RETIREMENT SYSTEM, AND BE IT FURTHER, THAT A COPY OF THIS RESOLUTION BE IMMEDIATELY FORWARDED TO RACINE & ASSOCIATES (ATTENTION: MARIE T. RACINE), 1001 WOODWARD AVENUE, SUITE 1100, DETROIT, MICHIGAN 48226; AND THE ACCOUNTING DIVISION OF THE RETIREMENT SYSTEM: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON - 9 PENSION NUMBER MARK WAYNE JACKSON PARTICIPANT: MARK WAYNE JACKSON ALTERNATE PAYEE: BARBARA ANN JACKSON BARBARA ANN JACKSON V. MARK WAYNE JACKSON CASE NO.: DO WAYNE COUNTY CIRCUIT FOR THE STATE OF MICHIGAN (DETROIT, MICHIGAN) BY TRUSTEE DIAZ SUPPORTED BY TRUSTEE GNATEK, the Board of Trustees for the Police and Fire Retirement System for the City of Detroit ( Board ) is in receipt of a First Amended Eligible Domestic Relations Order dated June 16, 2015 ( EDRO ) which amends an Eligible Domestic Relations Order dated November 20, 2014 and supplements a Judgment of Divorce entered on August 1, 2014 wherein: is awarded certain rights to the defined benefit plan/voluntary employee contributions and defined contribution/annuity savings fund plan benefits of, who is an active employee, and, the Board has been informed that Participant is an active employee and is not receiving retirement benefits, and, Participant s date of birth is October 16, 1974 and to date Participant has attained 16 years of service credit, and

15 MEETING NUMBER 3051 THURSDAY AUGUST 6, PENSION NUMBER MARK WAYNE JACKSON PARTICIPANT: MARK WAYNE JACKSON ALTERNATE PAYEE: BARBARA ANN JACKSON BARBARA ANN JACKSON V. MARK WAYNE JACKSON CASE NO.: DO WAYNE COUNTY CIRCUIT FOR THE STATE OF MICHIGAN (DETROIT, MICHIGAN) - CONTINUED, the EDRO seeks to award the Alternate Payee a portion of the Participant s defined benefit/voluntary employee contributions plan and defined contribution/annuity savings plan, and, the Participant who has not yet attained 20 years of service credit and is not yet eligible to receive payments under either the defined benefit/voluntary employee contributions plan or defined contribution/annuity savings plan, and, because the Participant is not yet eligible to receive payments under the defined benefit/voluntary employee contributions plan, the Alternate Payee entitled to claim a portion of the Participant s defined benefit/voluntary employee contributions plan when the Participant is eligible to receive such benefits, and as set forth in the EDRO and SUBJECT TO ALTERNATE PAYEE FILING AN APPLICATION FOR SAME, and, because the Participant is not yet eligible to receive payments under the defined contribution/annuity savings plan, the Alternate Payee entitled to claim a portion of the Participant s defined contribution/annuity savings plan when the Participant is eligible to receive such benefits, and as set forth in the EDRO and SUBJECT TO ALTERNATE PAYEE FILING AN APPLICATION FOR SAME, and and, the court order provides for the parties to share the cost of the actuary s fees,, said matter had been discussed with legal counsel who has opined that the applicable terms of said court order are consistent with the provisions of the Retirement System and applicable law including Public Act 46 of 1991 (MCLA ) as applicable, therefore be it

16 MEETING NUMBER 3051 THURSDAY AUGUST 6, PENSION NUMBER MARK WAYNE JACKSON PARTICIPANT: MARK WAYNE JACKSON ALTERNATE PAYEE: BARBARA ANN JACKSON BARBARA ANN JACKSON V. MARK WAYNE JACKSON CASE NO.: DO WAYNE COUNTY CIRCUIT FOR THE STATE OF MICHIGAN (DETROIT, MICHIGAN) - CONTINUED, that the Board acknowledges receipt of said court order and pay pension benefits consistent with said court order SUBJECT TO APPLICATION BEING FILED BY THE PARTY SEEKING PAYMENT, and be it further, that this file be forwarded to the Board s actuary for calculation of the benefits to be paid to the former spouse, and be it further, that a copy of this resolution be IMMEDIATELY attached as the top sheet of the pension file, and other appropriate records be kept for the Retirement System relative to this matter, and be it further, that copies of this resolution be sent to Alternate Payee Barbara Ann Jackson, Gayle Fort Williams, counsel for Alternate Payee, Participant Mark Wayne Jackson and Rita F. Young, counsel for Participant: YEAS TRUSTEES ADAMS, DIAZ, GNATEK, JAMISON, JENKINS, NAGLICK, TROZAK, TUCKER AND VICE CHAIRPERSON ROBERSON - 9 PUBLIC FORUM AT, DECLARED THE MEETING IN OPEN FORUM FOR GENERAL DISCUSSION BY THE PUBLIC ATTENDING THE MEETING.

17 MEETING NUMBER 3051 THURSDAY AUGUST 6, ADJOURNMENT THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, ADJOURNED THE MEETING AT UNTIL, AT., IN THE CONFERENCE ROOM OF THE RETIREMENT SYSTEMS, ONE DETROIT CENTER, 500 WOODWARD AVENUE, 30 TH FLOOR (SUITE 3000), DETROIT, MICHIGAN RESPECTFULLY SUBMITTED, CYNTHIA A. THOMAS EXECUTIVE DIRECTOR