Minutes of the Regular Meeting of the

Board of Trustees of the Monroe County

Employees Retirement System

Regular meeting of the Board of Trustees of the Monroe County Employees Retirement System held on March 26, 2007 at 5:00 P.M. in the Board of Commissioner’s Meeting Room at 125 E. Second St., Monroe, Michigan.

PRESENT: Clayton Charron, Nancy Colpaert, Jim Davies, George Jondro, Henry Lievens, Jim Morgan, Bill Sisk and David Thompson

ABSENT: Pamela Jones, excused

ALSO PRESENT: Debra Elmore, Retirement Specialist; Charles Londo, Secretary; Sam Galanis and Michael Cho, Consultants and Michael VanOverbeke, Legal Counsel

With a quorum being present, Chairman Thompson called the meeting to order at 5:00 P.M.

Motion by Bill Sisk, supported by George Jondro to approve the minutes of the February 26, 2007 meeting as submitted. All in favor, motion carried.

Motion by Jim Davies, supported by Jim Morgan to approve agenda as submitted. All in favor, motion carried.

Citizens Time

Bill Huff, Sheriff Deputy retiree questioned the Board about the interest he feels is still owed to him on the annuity he withdrew at the time of retirement. He is glad the Board has changed the way the interest is paid but feels he should have received up to date interest at the time he retired.

Presentations - Thomas Dibari with Pacific Income Advisers

The portfolio has a market value of $10.8 million as of December 31, 2006. The 2006 rate of return was 3.89% as opposed to their benchmark (Lehman Brothers Government/Credit Intermediate. For the 1st quarter of 2007 the rate of return was 1.44% as opposed to their benchmark at 1.38%. Pacific Income has reduced their BBB bond exposure.


Minutes Monroe County

Employees Retirement System

Board of Trustees

March 26, 2007 – Page 2

Motion by Jim Davies, supported by Bill Sisk to approve consent agenda as submitted below:

A. Retirements none

B. Financial Reports – On File with Retirement Specialist

1.  Comerica Bank Consolidated Statement, Cash Account Statement, Alliance Capital Management, Anchor Capital Advisors, Boyd Watterson Asset Management, Brandywine Asset Management Global, Brandywine Asset Management Large Cap, NWQ Investment Management and International Value Equity, Pacific Income Advisors, Templeton Portfolio Advisors for period 02/01/2007 through 02/28/2007 and Securities Lending Statement for January, 2007.

2.  Boyd Watterson client statement for period ending January 31 and February 28, 2007.

3.  Brandywine Global Investment Management – Global Fixed Income and Large Cap Value (PCG) Portfolio for February 2007.

4.  Morgan Stanley Vision Account for AllianceBerstein Regent, Anchor Capital Advisors, Brandywine Global Fixed Income, NWQ LCV, NWQ International and Templeton Private Client Group for period ending February 28, 2007.

5.  Pacific Income portfolio appraisal for period ending February 28, 2007.

6.  Tradewinds Global Investors transaction summary for period ending February 28, 2007.

C.  Communication

1.  Correspondence dated February 27, 2007 from Boyd Watterson Asset Management agreeing to be acquired by the PNC Financial Services Group, Inc.

2.  GRS News Scan, February 2007.

3.  Correspondence dated March 1, 2007 from Tradewinds Global.

Minutes Monroe County

Employees Retirement System

Board of Trustees

March 26, 2007 – Page 3

All in favor, motion carried.

Invoices

Motion by George Jondro, supported by Bill Sisk to approve for payment the following invoices, subject to house audit:

1.  Invoice #20971 dated March 13, 2007 in the amount of $36,564.00 from Boyd Watterson Asset Management for investment management services for period 12/01/2006 though 02/28/2007.

2.  Invoice dated February 28, 2007 in the amount of $7,155.00 from Comerica Commercial Card Service for registration fees for trustees to attend 2007 NCPERS Conference and one trustee registration for MAPERS one-day seminar.

3.  Invoice #843 dated March 7, 2007 in the amount of $24.65 from Monroe County Finance Department for February 2007 postage.

4.  Invoice #0107-576-09 dated February 23, 2007 in the amount of $740.00 from Monroe County Printing for printing, collating and 3 hole drilled member handbooks.

5.  Invoice dated February 22, 2007 in the amount of $550.00 from Steven Dovitz, M.D. for the IME of Nicholas Musulin, disability retiree applicant.

6.  Invoice #3081964923 dated February 24, 2007 in the amount of $1,544.00 from Staples Business Advantage for tab indexes for retirement books.

7.  Reimbursement to David Thompson in the amount of $670.10 for airfare to NCPERS 2007 Annual Conference in Hawaii.

All in favor, motion carried.

Refunds

Motion by Nancy Colpaert, supported by Jim Morgan to pay the following refunds:

1. Ronald Marshall, Friend of Court $3,059.13

Minutes Monroe County

Employees Retirement System

Board of Trustees

March 26, 2007 – Page 4

All in favor, motion carried.

Retirement Payments

Motion by Jim Davies, supported by Clayton Charron to pay the following retirement payments:

1. Elaine Mack, District Court $ 565.66

2. Ronald Marshall, Friend of Court $2,763.48

(Feb – 614.08; March – 2,149.40)

3. Terry Zibbell, Circuit Court, deferred $ 691.53

(Feb – 86.44; March – 605.09)

All in favor, motion carried.

Communications

1.  Letter dated March 6, 2007 from Bedford Public Schools regarding Judith Murray, Library employee.

Motion by Nancy Colpaert, supported by Jim Davies to accept and place on file. All in favor, motion carried.

2.  Medical report dated February 22, 2007 from Steven Dovitz, M.D. regarding disability retiree applicant Nickolas Musulin.

Motion by George Jondro, supported by Bill Sisk to accept, place on file and follow doctor’s recommendation to grant disability retirement. All in favor, motion carried.

3.  Application from Deborah Libstorff, County Health employee requesting to purchase one year and two months of CETA Service Time.

Motion by Jim Davies, supported by Jim Morgan to accept, place on file and grant request. All in favor, motion carried.

Proposed Resolutions

Motion by George Jondro, supported by Nancy Colpaert to accept and place on file the following resolutions:

Minutes Monroe County

Employees Retirement System

Board of Trustees

March 26, 2007 – Page 5

1.  Rosemary Dunholter, ETD – Application for Service Retirement

2.  Terry Zibbell, Circuit Court – Deferred Retirement

3.  Elaine Mack, District Court – Service Retirement

4.  Ronald Marshall, Friend of Court – Service Retirement

5.  Nickolas Musulin, Bldg. & Grds. – Disability Retirement

All in favor, motion carried.

Attorney Report

Michael VanOverbeke wanted to discuss litigation concerning the AOL Time Warner merger. Motion by Jim Morgan, supported by George Jondro to go into closed session to discuss attorney/client privilege. Roll call taken on the motion with all in favor, motion carried. Motion by Jim Davies, supported by George Jondro to come out of closed session. All in favor, motion carried.

Motion by Jim Davies, supported by Henry Lievens to accept the settlement from the AOL TimeWarner Securities Litigation as outlined in the letter dated March 26, 2007 from VanOverbeke, Michaud & Timmony, P.C. Roll call taken on the motion with all in favor, motion carried.

Consultant’s Report

Mr. Galanis reviewed the evaluation update for the period ending February 28, 2007. The Retirement System is up $200,528.85 from previous month. Fund is now valued at $179,008,387.13. The fund was up $387,467.77 before distributions for the month.

Old Business

·  Disability Retirements

·  Nickolas Musulin, B&G – doctor’s report on agenda

·  Ronald Whited – waiting to set up appointment with 3rd opinion doctor

·  Jerome VanSlambrouck – had appointment March 23, 2007


Minutes Monroe County

Employees Retirement System

Board of Trustees

March 26, 2007 – Page 6

New Business

Jim Morgan was asked by an employee if someone is on a disability retirement and is awarded social security, do the re-examinations need to continue? Legal stated that it is at the discretion of the Board who is sent for a re-examination but the Board policy is to send everyone. If the Board was to pick and choose who goes for a re-examination, there could be problems.

Dave Thompson would like a clarification on purchasing previous service time. When a person terminates employment and withdraws their contributions, they have one year from the date of re-employment to pay that money back and receive their previous service time for pension credit. Mr. Thompson wants to know if a former employee who has terminated and withdrawn their contributions later is elected to a position in the County (Commissioner, County Clerk, Drain Commissioner for example) and does not pay that money back within the first year of their term, if they are re-elected for a second term does that “year to purchase previous service credit” starts fresh.

Motion by Henry Lievens, supported by Jim Davies to send to legal for an opinion. All in favor, motion carried.

Trustee Comments - none

Motion by Bill Sisk, supported by Jim Morgan to adjourn. All in favor, motion carried. Meeting adjourned at 6:15P.M.

Respectfully Submitted,

David Thompson, Chairman

Monroe County Employees Retirement System Board of Trustees