1. The regular meeting of the Police and Fire Retirement System was called to order by President Lamerato at 3:35 p.m.

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1 REGULAR MEETING MINUTES OF THE STERLING HEIGHTS POLICE AND FIRE RETIREMENT SYSTEM, ACT 345 JUNE 18, 2015 CITY HALL - CONFERENCE ROOM # UTICA ROAD STERLING HEIGHTS, MI The regular meeting of the Police and Fire Retirement System was called to order by President Lamerato at 3:35 p.m. 2. Board Members present: Lamerato, Wellhausen, Schwarb, Varney. Absent: Maleszyk (excused). Also present: Tom Michaud, Legal Counsel; and Nancy Duyck, Pension Technician. 3. APPROVAL OF CONSENT AND S Motion by Wellhausen, supported by Schwarb, to approve the consent agenda as The following item was added to the regular agenda. 10 a 15 Thomas Fett EDRO resolution discussion Motion by Wellhausen, supported by Schwarb, to approve the regular agenda as amended.

2 Page Two 4. APPROVAL OF MINUTES No corrections were made to the draft minutes of the regular meeting of May 21, Motion by Schwarb, supported by Varney, to approve the minutes as The motion carried; the minutes of the regular meeting of May 21, 2015 are hereby approved as 5. CITIZEN PARTICIPATION There was no Citizen participation. 6. REPORT FROM LEGAL COUNSEL No formal legal report was Mr. Michaud commented on items of old business as they were considered. CONSENT AGENDA 7. CORRESPONDENCE a. Correspondence from Intercontinental dated May 21, 2015 re: distribution in Intercontinental U.S. Real Estate Investment Fund. LLC. b. Updated Pension Board Terms c. Other correspondence received from: 1. Winslow Capital Form ADV Part II 2. Morgan Stanley market value weekly updates 3. NCPERS Income Inequality brochure 4. VOYA Vantage Point brochure d. Magazines received: 1.Institutional Investor for June Pensions & Investments for June 1 and 15, BILLS AND EXPENDITURES c. Checking Account Summary Beginning Balance $ 6, /01/15 Additions (1) 1. 5/27 $ 5, Page Three CONSENT AGENDA 8. BILLS AND EXPENDITURES c. Checking Account Summary cont. Subtractions (5) $ 2,225.95

3 1. 5/27 Check AT & T phone bill 5/16/ /22 Check MW - Spring MAPERS travel exp. 3. 5/08 Check Contract Payment Nancy Duyck 4. 5/06 Check Contract fee Gurin & Gurin 5. 5/22 Check Contract Payment Nancy Duyck Electronic withdrawals (4) $1, / IRA contribution 2. 5/ IRS Fed. tax w/h 3. 5/ Michigan St. tax w/h 4. 5/ IRS Fed. tax w/h Ending Balance $ 7, /31/15 d. Transmittal of Checks 1. $53, received from Lamar Kashat for the purchase of 3 years of eligible municipal service credit. The adjusted hire date is February 9, FUNDS MANAGEMENT a. The current value of funds as of May 31, 2015 is detailed below: Page Four CONSENT AGENDA 9. FUNDS MANAGEMENT - cont. - Clearing account $ 1,895, Intercontinental $ 7,594, Winslow $ 16,569, Janus $ 17,223, Eagle $ 11,520, Herndon $ 21,847, Earnest Partners $ 14,836, NFJ/Allianz $ 16,282, AIM/Invesco $ 17,842, Western $ 27,192, Met West $ 25,474, London Co. $ 31,734, MS Cash $ 1, Checking account $ 7, TOTAL FUNDS $ 210,022, 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 5/12/15. The System has received $7,742, of the 2014/15 budget of $7,953,970.00, leaving a $211, balance. c. Benefit Register Listing as of June 1, 2015 from Comerica Bank showing 323 retirees/beneficiaries with a payout for June of $1,295, and a year-to-date of $5,508, d. The current Merrill Lynch Bond index for May 2015 is 2.05%.

4 a. Old Business No Old Business. 8. BILLS AND EXPENDITURES a. Disbursements other than retiree benefit payments (bills) 1. Disbursement to Mark Wellhausen in the amount of $1, for reimbursement for purchase of new MAC Pension computer. 2. Disbursement to MES Solutions in the amount of $ for a medical examination for a disability retirement for Antoinette Fett. 3. Disbursement to Metropolitan West Asset Management, LLC in the amount of $5, for investment management fees for the first quarter Disbursement to Rodwan Consulting Company in the total amount of $ for actuarial services rendered for the Braathen EDRO calculation. Motion by Varney, supported by Schwarb, to approve the bills as Page Five 8. BILLS AND EXPENDITURES b. Disbursement to retirees/members other than monthly benefit payments 1. John Gurnow partial DROP distribution - discussion John Gurnow of the Police Department terminated his DROP retirement as of December 15, He requested a partial distribution from his DROP account. All required paperwork is on file in the Pension Office. 2. Donald Sypniewski partial DROP distribution - discussion Police Officer Donald Sypniewski of the Police Department terminated his DROP retirement as of June 28, He requested a partial distribution from his DROP account. All required paperwork is on file in the Pension Office. Motion by Varney, supported by Schwarb, to approve the partial DROP distributions as

5 1. James Andonoff DROP retirement termination - discussion Battalion Chief James Andonoff of the Fire Department terminated his DROP retirement as of June 10, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement disbursement and process the retirement certificate as Page Six cont. 2. James Little DROP retirement termination - discussion Lieutenant James Little of the Fire Department terminated his DROP retirement as of June 10, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement and annuity withdrawal disbursements and process the retirement certificate as 3. Gary Choate DROP retirement termination - discussion Battalion Chief Gary Choate of the Fire Department terminated his DROP retirement as of June 11, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement and annuity withdrawal disbursements and process the retirement certificate as

6 4. Brandon Flynn DROP retirement termination - discussion Lt. Brandon Flynn of the Fire Department terminated his DROP retirement as of June 11, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement disbursement and process the retirement certificate as Page Seven 4. Brandon Flynn DROP retirement termination discussion cont. 5. Richard Tomaszewski DROP retirement termination - discussion FEO Richard Tomaszewski of the Fire Department terminated his DROP retirement as of June 11, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement and annuity withdrawal disbursements and process the retirement certificate as 6. Guy Holmes DROP retirement termination - discussion Sgt. Guy Holmes of the Police Department terminated his DROP retirement as of June 11, All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the retirement and annuity withdrawal disbursements and process the retirement certificate as

7 Page Eight cont. 7. Walter Smith DROP retirement termination - discussion Police Officer Walter Smith of the Police Department terminated his DROP retirement as of June 11, All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the retirement and total DROP rollover disbursements and process the retirement certificate as 8. Kenneth Paul Durham DROP retirement termination - discussion Captain Kenneth Paul Durham of the Fire Department terminated his DROP retirement as of June 16, All required paperwork is on file in the Pension Office. Motion by Wellhausen, supported by Schwarb, to approve the retirement and annuity withdrawal disbursements and process the retirement certificate as 9. David Cattaneo DROP retirement termination - discussion Sgt. David Cattaneo of the Police Department terminated his DROP retirement as of June 16, All required paperwork is on file in the Pension Office. Motion by Schwarb, supported by Wellhausen, to approve the retirement disbursement and process the retirement certificate as Page Nine 9. David Cattaneo DROP retirement termination discussion cont.

8 10. Proposed 2015/16 Meeting schedule discussion The proposed meeting schedule for 2015/16 fiscal year must be approved and posted. The dates for the regular meetings of the Sterling Heights Police & Fire Retirement System for the 2015/16 fiscal year are as follows: July 16, 2015 at 3:30 pm September 17, 2015 at 3:30 pm November 19, 2015 at 3:30 pm January 21, 2016 at 3:30 pm March 17, 2016 at 3:30 pm May 19, 2016 at 3:30 pm August 20, 2015 at 3:30 pm October 15, 2015 at 3:30 pm December 17, 2015 at 3:30 pm February 18, 2016 at 3:30 pm April 21, 2016 at 3:30 pm June 16, 2016 at 3:30 pm Motion by Varney, supported by Schwarb, to approve the meeting dates for the fiscal year 2015/16 as 11. Election of Officers - discussion The Board elected Officers for the 2015/16 fiscal year as follows. President John Lamerato Secretary Mark Wellhausen Page Ten 11. Election of Officers discussion cont. Motion by Varney, supported by Schwarb, to certify the election results by unanimous consent. 12. Edward Miller EDRO resolution discussion

9 The Board is in receipt of an EDRO for active Battalion Chief Edwin Miller. Legal Counsel had approved the EDRO. The Alternate Payee passed away on June 2, Motion by Wellhausen, supported by Schwarb, to refer the item back to Legal Counsel for further review. 13. FOIA resolution and procedure - discussion Legal Counsel had supplied a draft FOIA Policy and Procedures for the Board s review. After discussion the following motion was made: Motion by Varney, supported by Schwarb, to nominate the Secretary as the FOIA Coordinator and adopt the City s FOIA policy. Page Eleven cont. 14. Account transfer for July 2015 benefit payments discussion As of June 15, 2015, the Clearing Account had a balance of $339, An additional $1,950, is needed for the July 1, 2015 pension benefit payments and bills from the Clearing Account. The Brice Group has forwarded an that the additional amount needed should be taken from the Winslow ($575,000.00), Janus ($575,000.00), Herndon ($400,000.00), and Eagle ($400,000.00) accounts, based on the asset allocation targets. Motion by Schwarb, supported by Wellhausen, to approve the transfer of the appropriate amount of funds from the Winslow, Janus, Herndon and Eagle accounts, based on the asset allocation targets, to provide for pension benefit payments and other disbursements on July 1, Thomas Fett EDRO resolution discussion

10 The Board is in receipt of an EDRO for active Police Captain Thomas Fett. Legal Counsel has approved the EDRO. The following EDRO resolution was considered. L RE: Thomas P. Fett vs. Antoinette M. Fett Macomb County Circuit Court Case No DM WHEREAS, the Board of Trustees is in receipt of an Eligible Domestic Relations Order (EDRO) dated June 2, 2015, wherein Antoinette M. Fett, the Alternate Payee, is awarded certain rights to the retirement benefits of Thomas Fett, the Participant, and WHEREAS, the Alternate Payee is only entitled to claim a portion of the Participant s Deferred Retirement Option Plan ( DROP ) Account, and Page Twelve 15. Thomas Fett EDRO resolution discussion cont. WHEREAS, the payments from the plan to the Alternate Payee of the Participant s benefits shall begin when the Participant terminates employment with the City of Sterling Heights and shall be payable in any of the acceptable forms of benefit as prescribed by the DROP, 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 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 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 Thomas Fett, the Participant; Lori Finazzo, Esq., attorney for the Participant; Antoinette Fett, the Alternate Payee;

11 Kathryn Cushman, Esq., attorney for the Alternate Payee; and the Board s actuary. Motion by Schwarb, supported by Wellhausen, to adopt the resolution as Page Thirteen 11. TRUSTEE COMMENTS 15. Thomas Fett EDRO resolution discussion cont. The motion carried; the resolution is hereby adopted. Wellhausen stated the new pension computer had been bought and Bob Dumas would be doing custom modifications to the Membership Tracking Database. 12. ADJOURNMENT Motion by Varney, supported by Wellhausen, to adjourn at 3:45 p.m. The motion carried; the meeting is hereby adjourned. Mark Wellhausen Secretary