Meeting #2856 09/22/2011 - detroit police & fire retirement system

MEETING NUMBER 2856 

PRESENT 

JOURNAL OF PROCEEDINGS OF THE BOARD OF TRUSTEES OF THE 

POLICE AND FIRE RETIREMENT SYSTEM OF THE CITY OF DETROIT 

♦♦♦ 

PROCEEDINGS HELD THURSDAY, SEPTEMBER 22, 2011 

9:00 A.M. 

IN THE CONFERENCE ROOM OF THE RETIREMENT SYSTEMS 

910 COLEMAN A. YOUNG MUNICIPAL CENTER 

DETROIT, MICHIGAN 48226 

♦♦♦ 

Janice Butler 

Mark Diaz 

Matthew Gnatek 

Joseph Martinico 

James Moore 

Sean P. Neary 

George Orzech 

Jeffrey Pegg 

Fred D. Wheeler 

Cynthia A. Thomas 

Ryan C. Bigelow 

Janet S. Lenear 

Ronald Zajac 

Joe Turner 

Ex/Officio Trustee 

Elected Trustee 

Elected Trustee/Vice Chairman 



Elected Trustee/Chairman 




Assistant Executive Secretary 

Investment Analyst 

Recording Secretary 

Legal Counsel 

Special Legal Counsel 

EXCUSED 

Cheryl R. Johnson 

Brenda Jones 

Walter Stampor 

Ex/Officio Trustee/Treasurer 

Ex/Officio Trustee/Council Member 

Executive Secretary 

ABSENT 

None


MEETING NUMBER 2856 – THURSDAY – SEPTEMBER 22, 2011 

2 

CHAIRPERSON 

Sean P. Neary 

VICE CHAIRPERSON 

Matthew Gnatek 

ROLL CALL WAS TAKEN AT 9:02 A.M. BY THE BOARD’S RECORDING 

SECRETARY AND THE MEETING WAS CALLED TO ORDER. 

DROP RETIREMENTS 

BY TRUSTEE GNATEK – SUPPORTED BY TRUSTEE DIAZ 

RESOLVED, THAT THE DROP RETIREMENT APPLICATIONS WHICH ARE 

DESIGNATED BELOW BE APPROVED: 

DROP RETIREMENT APPLICATIONS 

NAME, TITLE, DEPARTMENT: 

DONALD COX – LIEUTENANT - FIRE 

RETIREMENT TYPE, PLAN: 

DROP - NEW 

SERVICE CR./EFFECTIVE DATE: 25 00 00 – 09 22 11 


GARY GAJESKI – OFFICER - POLICE 


DROP - NEW 

SERVICE CR./EFFECTIVE DATE: 21 01 29 – 09 07 11 


MARTIN MAIER – FIRE ENGINE OPERATOR - FIRE 


DROP - NEW 



JOHN SKUBIK – SERGEANT - POLICE 


DROP - NEW 

SERVICE CR./EFFECTIVE DATE: 25 00 00 – 09 01 11 

YEAS – TRUSTEES BUTLER, DIAZ, GNATEK, ORZECH AND CHAIRMAN 

NEARY – 5 

NAYS – NONE



3 

DUTY DISABILITY RETIREMENT CONVERSION 


RESOLVED, THAT THE DUTY DISABILITY RETIREMENT CONVERSION 

APPLICATION WHICH IS REFERENCED BELOW BE APPROVED: 

CONVERTED DISABILITY FROM DUTY APPLICATION 


JOHN GRAVITT – FIRE FIGHTER - FIRE 


CONVERTED DISABILITY FROM DUTY - NEW 



NEARY – 5 

NAYS – NONE 

CONFIRMATIONS 

BY TRUSTEE ORZECH – SUPPORTED BY TRUSTEE GNATEK 

RESOLVED, THAT THE RECEIPTS AND DISBURSEMENTS WHICH ARE OUTLINED 

BELOW BE CONFIRMED: 

For the Period 09-12-11 to 09-16-11 

Meeting # 2856 

September 22, 2011 

REMITTER / PAYEE NAME WIRE DATE DESCRIPTION AMOUNT 

RECEIPTS-BNY 

Wind Point Partners 1V 09/13/11 Remittance 78,414.00 

Inland American Reit 09/13/11 Remittance 66,532.30 

SW Pelham Fund 09/13/11 Remittance 74,017.00 

Citigroup Venture Capital International 09/14/11 Remittance 153,566.50 

SG Mortgage Fund-Lakeview 09/14/11 Remittance 23,973.33 

SG Mortgage Fund-Tuscan 09/14/11 Remittance 36,186.34 

Alex Brown Realty-One Kennedy 09/14/11 Remittance 29,542.19 

Alex Brown Realty-Kales Building 09/14/11 Remittance 49,662.43 

Alex Brown Realty-Beethoven Apartment 09/14/11 Remittance 10,333.33 

City of Detroit 09/16/11 Weekly annuity contribution 94,392.00 

Washington Plaza 09/16/11 Remittance 250,000.00 

RECEIPTS-FINB 

Bobby Drew 09/16/11 Military Service 7,985.55 

TOTAL RECEIPTS 874,604.97 

DISBURSEMENTS-BNY 

McTevia & Associates 09/12/11 Paramount receivership 50,000.00 

General Retirement 09/14/11 Staff wages 30,016.68 

First Independence National Bank 09/14/11 Refund List #3418 1,237,125.13 

First Independence National Bank 09/14/11 Checkwrite 300,752.85 

TOTAL DISBURSEMENTS 1,617,894.66



4 

CONFIRMATIONS - CONTINUED 


NEARY – 5 

NAYS – NONE 

REFUNDS OF ACCUMULATED CONTRIBUTIONS 

BY TRUSTEE BUTLER – SUPPORTED BY TRUSTEE GNATEK 

RESOLVED, 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 NUMBER 3420, IN THE AMOUNT OF 

$2,083,901.57, INCLUDING INTEREST, BE REFUNDED PENDING AUDIT BY 

RETIREMENT SYSTEM ACCOUNTING STAFF: 


NEARY – 5 

NAYS – NONE 

TRUSTEE PEGG ENTERED THE MEETING AT 9:06 A.M. 

TRUSTEE MOORE ENTERED THE MEETING AT 9:10 A.M. 

MINUTES OF THURSDAY, AUGUST 25, 2011 

TRUSTEE PEGG ASKED THAT THE MINUTES OF AUGUST 25, 2011 NOT BE 

VOTED UPON UNTIL LEGAL COUNSEL HAS HAD THE OPPORTUNITY TO 

COMMENT REGARDING THE WORDING OF THE RESOLUTION PERTAINING TO 

INDEPENDENT LEGAL COUNSEL. 

ASSISTANT EXECUTIVE SECRETARY’S REPORTS 

CYNTHIA THOMAS ASKED THE BOARD TO APPROVE THE PRE-EMPLOYMENT 

MILITARY SERVICE CREDIT APPLICATION OF PAUL VINEY BROWN.



5 

PENSION NUMBER: 236196 

PAUL VINEY BROWN 

PRE-EMPLOYMENT MILITARY SERVICE CREDIT 

BY TRUSTEE DIAZ – SUPPORTED BY TRUSTEE GNATEK 

Whereas, Paul Viney Brown has applied to this Board for Pre-Employment 

Military Service Credit and has complied with all of the necessary 

requirements of Section 54-30-3-b of the Charter Provisions, as amended 

by Board resolution of February 3, 1983, Therefore Be It 

Resolved, That payment of the full amounts be made to the Pension 

Accumulation Fund by the method selected by Mr. Brown and the 

number of months eligible active duty be credited him as membership 

service credit subject to the conditions and limitations of the authorizing 

ordinance provisions as amended by Board resolution of February 3, 1983: 

YEAS – TRUSTEES BUTLER, DIAZ, GNATEK, MOORE, ORZECH, PEGG, AND 

CHAIRMAN NEARY – 7 

NAYS – NONE 

TRUSTEE MARTINICO ENTERED THE MEETING AT 9:17 A.M. 

TRUSTEE WHEELER ENTERED THE MEETING AT 9:21 A.M. 

SPECIAL COUNSEL JOE TURNER ENTERED THE MEETING AT 9:25 A.M. 

LEGAL COUNSEL RONALD ZAJAC ENTERED THE MEETING AT 9:32 A.M. 

MAINFRAME CONVERSION/DEFINED CONTRIBUTION LOAN PROGRAM 

IT SUPERVISOR DENNIS LINET DISCUSSED MAINFRAME CONVERSION, NOTING 

THAT HE HAS MET WITH A VENDOR RELATIVE TO THE BOARD PURCHASING A 

NEW MAINFRAME. 

MR. LINET ALSO DISCUSSED THE SYSTEM’S DEFINED CONTRIBUTION LOAN 

PROGRAM, OUTLINING THE PROCEDURES, RULES FOR BORROWING, LOAN 

TYPES, LOAN LIMITATIONS, LOAN REPAYMENTS AND MISSED LOAN 

PAYMENTS. HE ALSO ASKED THE BOARD TO DETERMINE THE LOAN 

PROGRAM’S INTEREST RATE AND FEES.



6 

MAINFRAME CONVERSION/DEFINED CONTRIBUTION LOAN PROGRAM - 

CONTINUED 

PRIOR TO EXCUSING HIMSELF, MR. LINET INFORMED THE BOARD THAT HE 

AND ANITA LINET WILL BE OFF WORK THE WEEK OF OCTOBER 4, 2011 FOR 

MEDICAL PURPOSES. ANITA WILL NOT BE FULLY MOBILE FOR 3-5 WEEKS BUT 

MAY BE AVAILABLE FOR REMOTE SUPPORT AND DEVELOPMENT ONCE THE 

FIRST WEEK PASSES. IN HER ABSENCE, IT STAFF MEMBER JONATHAN BERG 

WILL HANDLE MOST OF HER DUTIES. 

POLICE AND FIRE RETIREMENT SYSTEM LOAN PROGRAM (“LOAN 

PROGRAM”) 

BY TRUSTEE PEGG – SUPPORTED BY TRUSTEE ORZECH 

WHEREAS, THE BOARD OF TRUSTEES HAS THE RESPONSIBILITY TO ESTABLISH 

THE INTEREST RATE FOR BORROWERS TO PAY REGARDING LOANS OBTAINED 

THROUGH THE LOAN PROGRAM, THEREFORE BE IT 

RESOLVED, THAT THE INTEREST RATE EQUAL THE 30-YEAR TREASURY BOND 

ON THE DATE OF IMPLEMENTATION OF THE LOAN PROGRAM (I.E., UPON THE 

FIRST LOAN BEING GRANTED) AND BE ADJUSTED ANNUALLY, AND BE IT 

FURTHER 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO THE CITY 

OF DETROIT’S LABOR RELATIONS DIRECTOR; THE DPOA; THE DPLSA; THE 

PCOA; AND THE DFFA: 

YEAS – TRUSTEES BUTLER, GNATEK, ORZECH, PEGG AND CHAIRMAN 

NEARY – 5 

NAYS – TRUSTEES DIAZ, MARTINICO, MOORE AND WHEELER - 4



7 

POLICE AND FIRE RETIREMENT SYSTEM LOAN PROGRAM (“LOAN 

PROGRAM”) 

BY TRUSTEE PEGG - SUPPORTED BY TRUSTEE GNATEK 

WHEREAS, THE BOARD DEEMS IT APPROPRIATE TO ESTABLISH A MAXIMUM 

LOAN INTEREST RATE INCLUSIVE OF ALL FEES, THEREFORE BE IT 

RESOLVED, THAT THE MAXIMUM COST TO THE BORROWER FOR A LOAN AS 

TO INTEREST RATE PLUS FEES SHALL NOT EXCEED EIGHT (8%) PER CENT, AND 

BE IT FURTHER 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO THE CITY 

OF DETROIT’S LABOR RELATIONS DIRECTOR; THE DPOA; THE DPLSA; THE 

PCOA; AND THE DFFA: 

FOLLOWING DISCUSSION OF THE FOREGOING, TRUSTEE PEGG WITHDREW 

HIS MOTION AND TRUSTEE GNATEK WITHDREW HIS SUPPORT. 


LEGAL COUNSEL RONALD ZAJAC COMMENTED REGARDING THE WORDING 

OF THE BOARD’S AUGUST 25, 2011 MOTION REGARDING INDEPENDENT 

LEGAL COUNSEL. THE BOARD DECIDED TO LIMIT THE REFERENCE TO “CIVIL 

LITIGATION” TO SOLELY “TRADEWINDS LITIGATION.” TRUSTEE GNATEK THEN 

MOTIONED TO APPROVE SAID MINUTES. 



RESOLVED, THAT THE MINUTES OF THE MEETING HELD THURSDAY, AUGUST 

25, 2011 BE APPROVED AS AMENDED (AS INDICATED ABOVE), RECORDED 

AND SUBMITTED BY THE BOARD’S RECORDING SECRETARY. 

YEAS – TRUSTEES BUTLER, DIAZ, GNATEK, MARTINICO, MOORE, ORZECH, 

PEGG, WHEELER AND CHAIRMAN NEARY – 9 

NAYS – NONE



8 

LEGAL COUNSEL’S REPORTS 

LEGAL COUNSEL RONALD ZAJAC DISCUSSED VARIOUS MATTERS WITH THE 

BOARD AS FOLLOWS: 

PFRS PITG HOLDINGS CORP. 

AMBAC FINANCIAL GROUP, INC. (HE PROVIDED THE BOARD WITH A COPY 

OF A SEPTEMBER 13 ,2011 BENCH DECISION) 

SMITH VERSUS SMITH 

WILLIAMS VERSUS WILLIAMS 

DECREASE VERSUS DECREASE 

ICG LEASEBACK (HE PROVIDED THE BOARD WITH A COPY OF PLAINTIFFS’ 

FIRST AMENDED COMPLAINT; PLAINTIFFS’ MOTION TO SUBMIT CASE TO 

ALTERNATIVE DISPUTE RESOLUTION MECHANISM AND ADJOURNMENT OF 

ALL MATTERS; AND THE GENERAL RETIREMENT SYSTEM’S RESPONSE TO 

PLAINTIFF’S MOTION; RE: ADR AND BRIEF IN SUPPORT) 

THE BANK OF NEW YORK MELLON 

PFRS CRYSTAL TERRACE CORP. 

PFRS PITG Holdings Corp.; 2010 Tax Returns 

By Trustee Pegg – Supported by Trustee Moore 

WHEREAS, the Board is the sole shareholder of the corporation, and 

WHEREAS, the Board has been requested to approve the execution of the 

following 2010 Tax Returns dated September 22, 2011 by an officer of the corporation: (1) 

U.S. Corporation Income Tax Return, and (2) Pennsylvania Income Tax Return, and 

WHEREAS, the execution of said document has been recommended by the 

Board’s special legal counsel, F. Logan Davidson, and 

WHEREAS, the execution of said document has been reviewed and approved as 

to form by the Board’s legal counsel and the execution of said documents is consistent 

with prior action of the Board, therefore be it 

RESOLVED, that said document be executed by the appropriate corporate 

officers on behalf of the corporation, and be it further



9 

PFRS PITG Holdings Corp.; 2010 Tax Returns - Continued 

RESOLVED, that a copy of this resolution be forwarded to Special Legal Counsel F. 

Logan Davidson: 

YEAS – TRUSTEES BUTLER, DIAZ, GNATEK, MARTINICO, MOORE, ORZECH, PEGG, WHEELER 

AND CHAIRMAN NEARY – 9 

NAYS – NONE 

Entry in Minutes 

Re: 

PFRS PITG Holdings Corp.; 2010 Tax Returns 

The Board of Trustees has been made aware of the execution of the following 2010 Tax 

Returns dated September 22, 2011 by an officer of the corporation: (1) U.S. Corporation 

Income Tax Return; and (2) Pennsylvania Income Tax Return. 

PENSION NUMBER: 184228 


WAYNE COUNTY CIRCUIT COURT CASE NO.: 11-104192-DO 

BY TRUSTEE PEGG – SUPPORTED BY TRUSTEE MOORE 

WHEREAS, THE BOARD IS IN RECEIPT OF A SEPTEMBER 22, 2011 REQUEST 

FROM NOVELLA SMITH TO HAVE HER OPTION 3 WITH POP-UP C RETIREMENT 

CHANGED TO A STRAIGHT LIFE RETIREMENT BASED UPON A COURT ORDER 

TERMINATING THE RIGHTS OF THE OPTION BENEFICIARY, AND 

WHEREAS, THE BOARD IS IN RECEIPT OF A SEPTEMBER 12, 2011 COURT 

ORDER (DEFAULT JUDGMENT OF DIVORCE) WHICH HAS BEEN REVIEWED BY 

THE BOARD’S LEGAL COUNSEL WHO HAS CONCLUDED THAT THE COURT 

ORDER TERMINATES THE RIGHTS OF THE OPTION BENEFICIARY, AND 

WHEREAS, THE ACTION BELOW IS CONSISTENT WITH LONG-STANDING 

POLICIES AND PRACTICES OF THE BOARD, THEREFORE BE IT 

RESOLVED, THAT PETITIONER’S REQUEST BE GRANTED AND, EFFECTIVE 

OCTOBER 1, 2011, THE RETIREMENT BENEFITS BE ADJUSTED FROM AN OPTION 

3 WITH POP-UP C RETIREMENT TO A STRAIGHT LIFE RETIREMENT, AND BE IT 

FURTHER 

RESOLVED, THAT THE BOARD’S ACTUARY BE NOTIFIED OF THIS ACTION, 

AND BE IT FURTHER



10 

PENSION NUMBER: 184228 


WAYNE COUNTY CIRCUIT COURT CASE NO.: 11-104192-DO - CONTINUED 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO 

ATTORNEY HAROLD J. OSHER; NOVELLA SMITH; AND RETIREMENT SYSTEM 

STAFF MEMBER DAVID CETLINSKI: 



NAYS – NONE 



WAYNE COUNTY CASE NO.: 10-115012-DM 

BY TRUSTEE BUTLER – SUPPORTED BY TRUSTEE PEGG 

WHEREAS, THE BOARD IS IN RECEIPT OF A SEPTEMBER 14, 2011 DOMESTIC 

RELATIONS ORDER WHICH AMENDS/SUPPLEMENTS A JULY 26, 2001 

JUDGMENT OF DIVORCE WHEREIN ANJANETTE M. WILLIAMS IS AWARDED 

CERTAIN RIGHTS TO THE DEFINED BENEFIT PLAN BENEFITS ONLY OF LANCE T. 

WILLIAMS, AND 

WHEREAS, THE BOARD OF TRUSTEES HAS BEEN INFORMED THAT 

PARTICIPANT IS ELIGIBLE TO IMMEDIATELY RETIRE, AND 

WHEREAS, PARTICIPANT’S DATE OF BIRTH IS DECEMBER 24, 1953, AND, TO 

DATE, PARTICIPANT HAS ATTAINED 30 YEARS AND 09 MONTHS OF SERVICE 

CREDIT, AND 

WHEREAS, ALTERNATE PAYEE IS NOT ENTITLED TO CLAIM A PORTION OF 

PARTICIPANT’S DEFINED CONTRIBUTION PLAN, AND 

WHEREAS, ALTERNATE PAYEE IS ENTITLED TO CLAIM A PORTION OF 

PARTICIPANT’S DEFINED BENEFIT PLAN, AND 

WHEREAS, THE EARLIEST DATE THAT PAYMENTS FROM THE DEFINED BENEFIT 

PLAN CAN BE MADE TO THE PARTICIPANT OR ALTERNATE PAYEE IS 

IMMEDIATELY, AND



11 



WAYNE COUNTY CASE NO.: 10-115012-DM - CONTINUED 

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 

WHEREAS, THE COURT ORDER PROVIDES FOR THE PARTIES TO SHARE THE 

COST OF THE ACTUARY’S FEES, 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 38.1701), AS 

APPLICABLE, THEREFORE BE IT 

RESOLVED, THAT THE BOARD ACKNOWLEDGE 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 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE IMMEDIATELY ATTACHED 

AS THE TOP SHEET OF THE PENSION FILE, AND OTHER APPROPRIATE 

RECORDS BE RETAINED BY THE RETIREMENT SYSTEM RELATIVE TO THIS 

MATTER, AND BE IT FURTHER 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO 

ATTORNEY DONALD MCGUIGAN; ATTORNEY MICHAEL ROBBINS; 

ANJANETTE M. WILLIAMS; LANCE T. WILLIAMS; AND RETIREMENT SYSTEM 

STAFF MEMBER DAVID CETLINSKI: 



NAYS – NONE



12 



WAYNE COUNTY CASE NO.: 04-427293-DM 

BY TRUSTEE BUTLER – SUPPORTED BY TRUSTEE PEGG 

WHEREAS, THE BOARD IS IN RECEIPT OF A SEPTEMBER 9, 2011 ELIGIBLE 

DOMESTIC RELATIONS ORDER WHICH AMENDS/SUPPLEMENTS A MAY 4, 

2007 JUDGMENT OF DIVORCE WHEREIN CARLA DECREASE IS AWARDED 

CERTAIN RIGHTS TO THE DEFINED BENEFIT PLAN AND DEFINED 

CONTRIBUTION PLAN BENEFITS OF RUSSELL DECREASE WHO IS CURRENTLY 

AN ACTIVE EMPLOYEE, AND 

WHEREAS, THE BOARD OF TRUSTEES HAS BEEN INFORMED THAT 

PARTICIPANT IS ELIGIBLE TO IMMEDIATELY RETIRE, AND 

WHEREAS, PARTICIPANT’S DATE OF BIRTH IS NOVEMBER 4, 1963, AND, TO 

DATE, PARTICIPANT HAS ATTAINED 25 YEARS OF SERVICE CREDIT, AND 


PARTICIPANT’S DEFINED CONTRIBUTION PLAN, AND 


PARTICIPANT’S DEFINED BENEFIT PLAN, AND 

WHEREAS, DEFINED CONTRIBUTION PLAN AMOUNTS CAN BE MADE TO THE 

PARTICIPANT OR ALTERNATE PAYEE IMMEDIATELY, AND 

WHEREAS, THE EARLIEST DATE THAT PAYMENTS FROM THE DEFINED BENEFIT 

PLAN CAN BE MADE TO THE PARTICIPANT OR ALTERNATE PAYEE IS 

IMMEDIATELY, 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 

WHEREAS, THE COURT ORDER PROVIDES FOR THE PARTIES TO SHARE THE 

COST OF THE ACTUARY’S FEES, 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



13 



WAYNE COUNTY CASE NO.: 04-427293-DM - CONTINUED 

APPLICABLE LAW, INCLUDING PUBLIC ACT 46 OF 1991 (MCLA 38.1701), AS 

APPLICABLE, THEREFORE BE IT 

RESOLVED, THAT THIS FILE BE FORWARDED TO THE BOARD’S ACTUARY FOR 

CALCULATION OF THE BENEFITS TO BE PAID TO THE FORMER SPOUSE 

EFFECTIVE AND BE IT FURTHER 

RESOLVED, THAT THE BOARD ACKNOWLEDGE RECEIPT OF SAID COURT 

ORDER AND PAY PENSION BENEFITS CONSISTENT WITH SAID COURT ORDER 

SUBJECT TO APPLICATION BEING FILED BY THE PARTY SEEKING PAYMENT, 


RESOLVED, THAT A COPY OF THIS RESOLUTION BE IMMEDIATELY ATTACHED 

AS THE TOP SHEET OF THE PENSION FILE, AND OTHER APPROPRIATE 

RECORDS BE RETAINED BY THE RETIREMENT SYSTEM RELATIVE TO THIS 

MATTER, AND BE IT FURTHER 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO CARLA 

DECREASE; RUSSELL DECREASE; AND RETIREMENT SYSTEM STAFF MEMBER 

DAVID CETLINSKI: 



NAYS – NONE 

BANK OF NEW YORK MELLON (“BONYM”) 

BY TRUSTEE PEGG – SUPPORTED BY TRUSTEE ORZECH 

WHEREAS, THE BOARD HAS BEEN REQUESTED TO EXECUTE A “PERFORMANCE 

AND RISK ANALYTICS AGREEMENT” (“PRAA”) DATED SEPTEMBER 21, 2011 

RELATIVE TO THE AFORESAID TRANSACTION, AND 

WHEREAS, THE PRRA SERVES AS AN ADDENDUM TO THE ELECTRONIC 

ACCESS SERVICES AGREEMENT DATED AUGUST 25, 2011, AND 

WHEREAS, THE EXECUTION OF SAID DOCUMENT HAS BEEN RECOMMENDED 

BY THE RETIREMENT SYSTEM’S CUSTODIAL BANK, AND



14 

BANK OF NEW YORK MELLON (“BONYM”) - CONTINUED 

WHEREAS, THE EXECUTION OF SAID DOCUMENT HAS BEEN REVIEWED AND 

APPROVED AS TO FORM BY THE BOARD’S LEGAL COUNSEL, AND 

RESOLVED, THAT SAID DOCUMENT BE EXECUTED BY TWO AUTHORIZED 

SIGNATORIES ON THE BOARD’S BEHALF, AND BE IT FURTHER 

RESOLVED, THAT THE EXECUTED ORIGINAL DOCUMENT BE FORWARDED TO 

THE APPROPRIATE PARTY, AND BE IT FURTHER 

RESOLVED, THAT RETIREMENT SYSTEM ACCOUNTING STAFF RETAIN A COPY 

OF SAID EXECUTED ORIGINAL DOCUMENT: 



NAYS – NONE 

RECESS 

THE BOARD RECESSED FOR LUNCH AT 12:30 P.M., AND TRUSTEE WHEELER 

EXCUSED HIMSELF AT 12:50 P.M. 

CHAIRMAN NEARY RE-CONVENED THE MEETING AT 1:00 P.M. 

SPECIAL LEGAL COUNSEL’S REPORTS 

SPECIAL COUNSEL JOE TURNER DISCUSSED VARIOUS MATTERS WITH THE 

BOARD AS FOLLOWS: 

TRADEWINDS LITIGATION (UPDATE) 

MALHALAB LITIGATION (UPDATE) 

PUBLIC ACT 4 LITIGATION (UPDATE) 

LIFE ASSURANCE FUND 

INVESTMENT ANALYST RYAN C. BIGELOW DISCUSSED LIFE ASSURANCE FUND 

AND NOTED THAT HE STILL HASN’T RECEIVED THE INFORMATION (LIST OF 

PREMIUMS, FINANCIALS, ETC.) THAT HE REQUESTED ON AUGUST 30, 2011.



15 

LIFE ASSURANCE FUND (“LAF”) 

BY TRUSTEE ORZECH – SUPPORTED BY TRUSTEE GNATEK 

WHEREAS, SPECIAL COUNSEL AND GENERAL COUNSEL RECOMMENDED 

THAT THE BOARD ENGAGE STOUT, RISIUS & ROSS TO PERFORM AN AUDIT OF 

THE LIFE ASSURANCE FUND, AND 

WHEREAS, THE BOARD HAS CONSIDERED THIS MATTER, THEREFORE BE IT 

RESOLVED, THAT THE BOARD AUTHORIZES THE ENGAGEMENT OF STOUT, 

RISIUS & ROSS TO PERFORM AN AUDIT OF THE LIFE ASSURANCE FUND, AND 

BE IT FURTHER 

RESOLVED, THAT UPON SPECIAL COUNSEL’S COMPLETION OF THE 

ENGAGEMENT LETTER MEMORIALIZING THE TERMS AND CONDITIONS OF THE 

ENGAGEMENT, AND FINAL APPROVAL OF THE ENGAGEMENT BY GENERAL 

COUNSEL, TWO (2) AUTHORIZED SIGNERS ARE APPROVED TO SIGN THE 

CONTRACT, AND BE IT FURTHER 

RESOLVED, THAT THE GENERAL RETIREMENT SYSTEM HAS PASSED OR WILL 

PASS A RESOLUTION AUTHORIZING THE ENGAGEMENT OF STOUT, RISIUS & 

ROSS FOR THE SAME PURPOSES AS STATED IN THIS RESOLUTION AND SUCH 

CONSULTING FEES SHALL BE EVENLY SPLIT BY EACH RETIREMENT SYSTEM, 


RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO THE LIFE 

ASSURANCE FUND; STOUT, RISIUS & ROSS; THE GENERAL RETIREMENT 

SYSTEM; SPECIAL COUNSEL CLARK HILL; AND THE ACCOUNTING DIVISION 

OF THE RETIREMENT SYSTEM: 



NAYS – NONE



16 

UNION HERITAGE 

BY TRUSTEE ORZECH – SUPPORTED BY TRUSTEE PEGG 

WHEREAS, DEREK T. BATTS IS THE INVESTMENT MANAGER PRINCIPAL IN 

UNION HERITAGE AND IS ALSO A PRINCIPAL IN THE LIFE ASSURANCE FUND, 

AND 

WHEREAS, THE BOARD OF TRUSTEES IS NOT SATISFIED WITH THE RESPONSE 

TIME BY DEREK BATTS REGARDING REQUESTS MADE BY THE BOARD OF 

TRUSTEES THROUGH ITS INVESTMENT ANALYST AND SPECIAL LEGAL 

COUNSEL FOR DOCUMENTATION AND INFORMATION, RE: THE LIFE 

ASSURANCE FUND, THEREFORE BE IT 

RESOLVED, THAT IF THE REQUESTED INFORMATION IS NOT PROVIDED BY 

MR. BATTS BY FRIDAY, SEPTEMBER 23, 2011, AND IF FURTHER REQUESTED 

INFORMATION IS REQUESTED BY THE INVESTMENT ANALYST AND/OR SPECIAL 

LEGAL COUNSEL IS NOT “IMMEDIATELY” PROVIDED TO THE SATISFACTION OF 

THE INVESTMENT ANALYST AND SPECIAL LEGAL COUNSEL (CLARK HILL, 

PLC.), THE INVESTMENT MANAGEMENT AGREEMENT WITH UNION HERITAGE 

IS “IMMEDIATELY” TERMINATED, AND BE IT FURTHER 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE PROVIDED TO DEREK T. 

BATTS; THE RETIREMENT SYSTEM’S INVESTMENT ANALYST; THE RETIREMENT 

SYSTEM’S SPECIAL LEGAL COUNSEL, CLARK HILL, P.C., ATTENTION: JOE 

TURNER; AND THE ACCOUNTING DIVISION OF THE RETIREMENT SYSTEM: 


PEGG AND CHAIRMAN NEARY – 8 

NAYS – NONE 

CLOSED SESSION 


Resolved, That the Board enter into Closed Session for the purpose of 

discussing an ongoing General Retirement System Trustee issue: 

A Roll Call vote was taken as follows:



17 

CONTINUATION OF CLOSED SESSION 



NAYS – NONE 

The Board entered into Closed Session at 1:42 P.M. 

OPEN SESSION 

BY TRUSTEE GNATEK - SUPPORTED BY TRUSTEE DIAZ 

Resolved, That the Board return to Open Session: 

A Roll Call vote was taken as follows: 



NAYS – NONE 

The Board returned to Open Session at 2:12 P.M. 

CAPITAL CALLS, FEES AND EXPENSES 

BY TRUSTEE PEGG – SUPPORTED BY TRUSTEE GNATEK 

WHEREAS, THE BOARD HAS BEEN PRESENTED WITH A SUMMARY OF CAPITAL 

CALLS AND FEES AND EXPENSES WHICH ARE DESIGNATED ON THE PAGE 

WHICH FOLLOWS, AND 

WHEREAS, THE BOARD HAS BEEN REQUESTED TO APPROVE FUNDING OF 

SAID CAPITAL CALLS AND PAYMENT OF SAID FEES AND EXPENSES, 

THEREFORE BE IT 

RESOLVED, THAT SUBJECT TO FINAL APPROVAL OF ALL TRANSACTION 

DOCUMENTS BY THE BOARD’S LEGAL COUNSEL AND SUBJECT TO STAFF 

AUDIT, THE BOARD APPROVES FUNDING OF SAID CAPITAL CALLS AND 

PAYMENT OF SAID FEES AND EXPENSES:



18 

Capital Calls, Fees and Expenses 



NAYS – NONE 

TRUSTEE MARTINICO EXCUSED HIMSELF AT 2:30 P.M.



19 

THE SEMINOLE COMPANIES 

SAS MORTGAGE TRUST 

BY TRUSTEE PEGG – SUPPORTED BY TRUSTEE GNATEK 

WHEREAS, ROBERT BANKS PRESENTED THE BOARD WITH A JULY 12, 2011 

REQUEST THAT THE BOARD RE-ALLOCATE THE BOARD’S INVESTMENT 

($80,000,000) IN THE SEMINOLE COMPANIES’ SAS MORTGAGE TRUST FROM 

SECTION 20 TO THE BASKET CLAUSE, AND 

WHEREAS, THE BOARD HAS DISCUSSED THE REQUEST OF MR. BANKS, 

THEREFORE BE IT 

RESOLVED, THAT MR. BANKS BE INFORMED THAT THE BOARD HOLDS NO 

INTEREST IN CHANGING ITS ASSET ALLOCATION WITHIN THE FUND, AND BE IT 

FURTHER 

RESOLVED, THAT A COPY OF THIS RESOLUTION BE FORWARDED TO MR. 

BANKS: 

YEAS – TRUSTEES BUTLER, DIAZ, GNATEK, MOORE, ORZECH, PEGG AND 

CHAIRMAN NEARY – 7 

NAYS – NONE 

PUBLIC RELATIONS FIRMS 

CHAIRMAN NEARY ASKED THAT THE BOARD BE PREPARED TO DISCUSS THE 

BAB ASSOCIATES, LLC AND FRANCO PUBLIC RELATIONS GROUP 

PROPOSALS AT ITS MEETING OF SEPTEMBER 29, 2011. 

TABLED MATTERS 

TRUSTEE DIAZ INQUIRED AS TO WHEN IT’S APPROPRIATE TO REMOVE FROM 

THE TABLE AND ACT UPON TABLED MATTERS, NOTING THAT SOME MATTERS 

HAVE BEEN TABLED SINCE 2010. THIS MATTER WILL BE DISCUSSED ON THE 

29 TH . 

AUDIO RECORDING OF BOARD MEETINGS 

CHAIRMAN NEARY INFORMED THE BOARD THAT THE SYSTEM’S AUDIO 

RECORDING EQUIPMENT HAS BEEN RECEIVED AND IS BEING TESTED.



20 

PUBLIC FORUM 

AT 3:00 P.M., CHAIRMAN NEARY DECLARED THE MEETING IN OPEN FORUM 

FOR GENERAL DISCUSSION BY THE PUBLIC ATTENDING THE MEETING. 

ADJOURNMENT 

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, CHAIRMAN NEARY 

ADJOURNED THE MEETING AT 3:05 P.M. UNTIL THURSDAY, SEPTEMBER 29, 

2011 AT 9:00 A.M., IN ROOM 910 OF THE COLEMAN A. YOUNG 

MUNICIPAL CENTER, DETROIT, MICHIGAN 48226. 

RESPECTFULLY SUBMITTED, 

____________________________________ 

CYNTHIA A. THOMAS 

ASSISTANT EXECUTIVE SECRETARY

Meeting #2856 09/22/2011 - detroit police & fire retirement system

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