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HomeMy WebLinkAboutMinutes - 2017.04.23 - 32421OAKLAND COUNTY RETIREMENT AND DEFERRED COMPENSATION BOARD MINUTES The Oakland County Retirement and Deferred Compensation Board meeting was held April 13, 2017 at 1:30 p.m. in the West Oakland Conference Room of the Executive Office Building. Members Present: James H. VanLeuven, Jr. Joseph Rozell Andy Meisner Thomas Middleton Lauri Siskind Laurie Van Pelt (designee of County Executive) Chris Ward (designee of Chairperson, BOC) Members Absent with Notice: Curtis Childs Jeffrey Phelps Others Present: Keith Lerminiaux, Corporation Counsel Rhonda Van Tiflin, Human Resources Paige Ritchie, Human Resources Jennifer Hain, Human Resources Chris Kuhn, AndCo Consulting Peter Brown, AndCo Consulting 1. Moved by Meisner, seconded by Van Pelt, to approve the minutes of March 23, 2017. Motion carried. 2. Meeting was opened for public comment; no one spoke. 3. Moved by Rozell, seconded by Siskind, to approve the following Defined Benefit retirement applications. Motion carried. DEPARTMENT RETIREMENT EFFECTIVE Kelly, Brenda L. Circuit Court 04/14/2017 Sardelli, Margo M. Deferred 05/01/2017 Smith, Kim L. Deferred 05/05/2017 Wood, Donald FM&O 05/13/2017 4. Moved by Middleton, seconded by Meisner, to approve the following Defined Contribution retirement applications. Motion carried. DEPARTMENT RETIREMENT EFFECTIVE Blanchard, Sandra District Court 52/2 05/13/2017 Potocki, James T. Sheriff 04/29/2017 5. Four winners for the 1st quarter 2017 R.E.A.P. were drawn at random. Winners of $100 gift cards are: Name Department Educational Endeavor Christopher Cole Sheriff Department Fidelity Group Presentation Zachary Jordan Sheriff Department ICMA-RC One-on-One Sarah Ameluxen Friend of the Court Fidelity Group Presentation The Honorable Lisa Asadoorian 52-3 District Court ICMA-RC One-on-One 6. Moved by Meisner, seconded by Rozell, to receive and file the Investment Subcommittee minutes of March 23, 2017. Motion carried. Oakland County Retirement and Deferred Compensation Board Minutes April 13, 2017 Page 2 7. Moved by Van Pelt, seconded by Meisner, to receive and file the 1st Quarter 2017 Defined Benefit and Defined Contribution reports. Motion carried. 8. Moved by Van Pelt, seconded by Siskind, to receive and file the 2016 Oakland County Retirement and Deferred Compensation Annual Report. Motion carried. 9. Moved by Van Pelt, seconded by Meisner, to receive and file the Oakland County Employees’ Retirement System Summary Annual Report to Members as of September 30, 2016. Motion carried. 10. Moved by Siskind, seconded by Van Pelt to receive and file the April 2017 securities litigation Portfolio Monitoring Review report by The Miller Law Firm. Motion carried. 11. Discussion on proposed revisions to the following plan documents for Retiree Member residency and per diem update(s) based on proposed draft redlined changes provided in the meeting materials by Vice Chairperson Rozell: a) Initial Proposed Language: Section 41 and Section 48 - Oakland County Employees’ Retirement System Restated Resolution 1996 As Amended, May 2016 (Defined Benefit plan document): Retirement Commission; Composition of Section 41. The Retirement Commission shall consist of the following nine individuals:… (g) A retired Member of the Retirement System who resides in Oakland County, to be elected by the retired Members of the Retirement System…. Retirement Commission; Compensation. Section 48. The Commissioners, shall serve without compensation, except for the employee citizen Member and the retired Member Commissioners, who shall be paid a per diem for attending meetings of the Commission. The per diem shall be the same per diem established by the Board of County Commissioners for service on various boards and commissions. All Commissioners shall be reimbursed for the actual and necessary expenses they incur in their duties as Commissioners, except that the citizen Member and retired Member shall not be paid mileage for their attendance at published meetings. b) Initial Proposed Language: Section 14.9 - Oakland County Employees’ Retirement System (OCERS) Restated Resolution 1996 As Amended, December 2015 (Defined Contribution plan document): Section 14.9. Retirement Board’s Compensation The Board Members, shall serve without compensation, except for the Employee citizen Member and the retired Member Board Members and the retired Member Board Member, who shall be paid a per diem for attending meetings of the Commission. The per diem shall be the same per diem established by the Board of County Commissioners for service on various boards and commissions. All Board Members shall may be Oakland County Retirement and Deferred Compensation Board Minutes April 13, 2017 Page 3 reimbursed for the actual and necessary expenses they incur in performing their duties as Board Members, except that the citizen Member and retired Member shall not be paid mileage for their attendance at published meetings. Chairperson VanLeuven recused himself from discussion and voting on this item. Rozell states that he and Ward researched and found a 1978 Resolution on per diems adopted by the Board of Commissioners that states unless a different, specific per diem is adopted by a Board, the general per diem will be $35.00. There was discussion and agreement that this Board will use this general per diem amount ($35.00) approved by the Board of Commissioners, and such dollar figure will not be specifically referenced in the plan documents so that any future changes the general per diem amount by the Board of Commissioners will not necessitate plan document revisions. Discussion as to if a mileage reimbursement amount should be stated; it is agreed to reference this in Board by-laws so only that single document would be consistent for business involving either (Defined Benefit or Defined Contribution) plan. Rozell notes inconsistencies between terms used in the Defined Benefit and Defined Contribution plan documents to reference members of the Oakland County Retirement and Deferred Compensation Board; ‘Commissioners’ used in the Defined Benefit document vs. ‘Board Members’ in the Defined Contribution document. There is a desire to see consistency in the reference with use of the term ‘Commissioners’ throughout both. Discussion on which Commissioners should be eligible for per diem, resulting in Siskind’s proposal that Commissioners, with exception of the employee elected Commissioners, should be eligible for per diem. Motion by Rozell, supported by Ward, to recommend to the Board of Commissioners amendment of Sections 41 and 48 of the Oakland County Employees’ Retirement System Restated Resolution 1996 As Amended, May 2016 (Defined Benefit plan document) and Section 14.9 of the Oakland County Employees’ Retirement System (OCERS) Restated Resolution 1996 As Amended, December 2015 (Defined Contribution plan document), as amended below. Motion carried. c) Final Language (redlined and clean versions): Section 41(g) and Section 48 - Oakland County Employees’ Retirement System Restated Resolution 1996 As Amended, May 2016 (Defined Benefit plan document): Final redlined version Section 41(g): Retirement Commission; Composition of Section 41. The Retirement Commission shall consist of the following nine individuals:…. (g) A retired Member of the Retirement System who resides in Oakland County, to be elected by the retired Members of the Retirement System... Final revised version, redline removed, Section 41(g): Retirement Commission; Composition of Section 41. The Retirement Commission shall consist of the following nine individuals:…. (g) A retired Member of the Retirement System, to be elected by the retired Members of the Retirement System…. Oakland County Retirement and Deferred Compensation Board Minutes April 13, 2017 Page 4 Final red lined version, Section 48: Retirement Commission; Compensation. Section 48. The Commissioners, except for the employee Member Commissioners elected by the Members of the Retirement System and the retired Member Commissioner, shall be eligible to be paid a per diem for attending meetings of the Commission. The per diem shall be the same per diem established by the Board of County Commissioners for service on various boards and commissions. All Commissioners shall be reimbursed for the actual and necessary expenses they incur in their duties as Commissioners, except that the citizen Commissioner and retired Commissioner shall not be paid mileage for their attendance at published meetings. Final version, redline removed, Section 48: Retirement Commission; Compensation Section 48. The Commissioners, except for the employee Member Commissioners elected by the Members of the Retirement System, shall be eligible to be paid a per diem for attending meetings of the Commission. The per diem shall be the same per diem established by the Board of County Commissioners for service on various boards and commissions. All Commissioners shall be reimbursed for the actual and necessary expenses they incur in their duties as Commissioners, except that the citizen Commissioner and retired Commissioner shall not be paid mileage for their attendance at published meetings. d) Final Language (redlined and clean versions): Section 14.9 - Oakland County Employees’ Retirement System (OCERS) Restated Resolution 1996 As Amended, December 2015 (Defined Contribution): Final redlined version, Section 14.9: Section 14.9. Retirement Board’s Compensation The Board Members Commissioners, except for the Employee Member Commissioners elected by the Members of the Retirement System, Board Members and the retired Member Board Member, shall be eligible to be paid a per diem for attending meetings of the Commission. The per diem shall be the same per diem established by the Board of County Commissioners for service on various boards and commissions. All Board Members Commissioners shall may be reimbursed for the actual and necessary expenses they incur in performing their duties as Board Members Commissioners, except that the citizen Commissioner and retired Commissioner shall not be paid mileage for their attendance at published meetings. Final revised version, redline removed, Section 14.9: Section 14.9 Retirement Board’s Compensation The Commissioners, except for the Employee Member Commissioners elected by the Members of the Retirement System, shall be eligible to be paid a per diem for attending meetings of the Commission. The per diem shall be the same per diem established by the Board of County Commissioners for service on various boards and commissions. All Commissioners shall be reimbursed for the actual and necessary expenses they incur in performing their duties as Commissioners, except Oakland County Retirement and Deferred Compensation Board Minutes April 13, 2017 Page 5 that the citizen Commissioner and retired Commissioner shall not be paid mileage for their attendance at published meetings. 12. Chairperson VanLeuven notes an error on the Agenda; item 12 states Receive and file the Retiree Election Calendar for term ending August 31, 2017, whereas the date referenced should be August 31, 2019. Motion by Van Pelt, support by Ward, to receive and file the Retiree Election Calendar for term ending August 31, 2019. Motion carried. 13. Agenda items 13 and 14 were addressed in inverse order. Chris Kuhn and Peter Brown of AndCo Consulting distributed and provided brief comments summarizing highlights of the following reports: • Oakland County Employees’ Retirement System – Asset/Manager Summary – April 2017 • Oakland County Employees’ Retirement System - Capital Market Overview April 2017 • Market Update – March 31, 2017 • Oakland County Employees’ Retirement System Defined Benefit Plan Monthly Flash Report for the period ending March 31, 2017 • Oakland County Employees’ Retirement System Superseding Trust Monthly Flash Report for the period ending March 31, 2017 Motion by Van Pelt, seconded by Meisner, to receive and file the detailed reports. Motion carried. 14. Other Business: a) Assistant Secretary Van Tiflin provided hardcopies of the OCERS Restated Resolution 1996 As Amended December 2015 (Defined Contribution) and Oakland County 457(b) Deferred Compensation Plan Updated 2014 plan documents including draft proposed changes for review and discussion during the May meeting. (Note: the referenced draft proposed changes to the Defined Contribution plan document here did not include the change to Section 14.9 approved in item 11 above.) b) Chairperson VanLeuven stated that the Board should expect to receive a draft request for proposal for 401(a)/457 recordkeeper from Graystone in May. c) Assistant Secretary Van Tiflin shared that ICMA-RC is sending a targeted mailing to 401a account holders in the 55 to 66 age range offering Social Security Solutions services with Nancy Lange, CFP. 15. Moved by Meisner, seconded by Siskind to adjourn the meeting at 2:38 p.m. Motion carried. The next meeting is scheduled for Thursday, May 25, 2017 at 1:30 p.m. Respectfully submitted, __________________________________ __________________________________ James H. VanLeuven, Jr., Chairperson Rhonda Van Tiflin, Assistant Secretary