Minutes of the Regular Meeting of The s9

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 August 28, 2006 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, Pamela Jones, Jim Morgan, Jerry Oley, David Scott and David Thompson.

ABSENT: none

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 David Scott, supported by Jim Morgan to approve the minutes of the July 24, 2006 meeting as submitted. All in favor, motion carried.

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

Citizens Time – none

Presentations: Lisa George, NWQ Investment Management Co. and Tradewinds NWQ Global.

Ms. George reviewed the performance with the Board. NWQ is up almost $1.8 million for year to date 2006 while Tradewinds NWQ is up a little over $1.7 million. The relative performance for 2nd quarter 2006 for NWQ is 2.0% while their benchmark S&P 500/Citigroup Value and Russell 1000 Value was 0.6% and Tradewinds NWQ is 1.0% while their benchmark, MSCI EAFE is 0.7%.

Motion by George Jondro, supported by Jim Davies to approve consent agenda as submitted below:

A. Retirements – none Minutes Monroe County Employees Retirement System Board of Trustees

August 28 2006 – Page 2

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 07/01/06 through 07/31/06 and Securities Lending Statement for June 2006.

2. Boyd Watterson Client Statement for period ending June 30, 2006.

3. Brandywine Asset Management Global Fixed Income Portfolio and Traditional Large Cap Value Portfolio for July 2006 and 2nd Quarter 2006

4. Anchor Capital Advisors portfolio summary for period ending June 30, 2006.

5. Morgan Stanley Vision Account for AllianceBerstein Regent, Anchor Capital Advisors, NWQ LCV, NWQ International and Templeton Private Client Group for period ending July 31, 2006.

6. NWQ Investment Management Company investment portfolio for period ending June 30, 2006.

7. Pacific Income Advisers portfolio appraisal for period ending June 30, July 31, 2006 and quarterly report for period ending June 30, 2006.

8. Templeton Portfolio Advisors portfolio quarterly report for period ending June 30, 2006.

C. Communication

1. Anchor Capital Advisors Investment Policy Outlook, July 2006.

2. Communication dated July 24, 2006 from Brandywine Global regarding second quarter performance.

3. Communication from Brandywine Global fixed income commentary for 2nd quarter 2006. Minutes Monroe County Employees Retirement System Board of Trustees

August 28, 2006 – Page 3

4. Communication dated July 27, 2006 from Franklin Templeton Companies regarding proxy voting summary report.

5. GRS Insight and GRS News Scan for July 2006.

6. Correspondence dated July 28, 2006 from David Thompson, Chairman Monroe County Employees Retirement System to Michael Wasz, Templeton Portfolio Advisors.

7. Correspondence dated July 13, 2006 from Ralph Lange, Managing Director, Monroe County Road Commission thanking the Board of Trustees for deferring the issue of adopting the actuarial valuation report at the May 15, 2006 meeting.

8. Communication dated July 17, 2006 from NWQ concerning 2nd quarter 2006.

9. Communication from NWQ concerning recent corporate distributions and reorganizations.

All in favor, motion carried.

Invoices

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

1. Invoice dated July 1, 2006 in the amount of $14,165.64 from Anchor Capital Advisors for investment management services for 2nd quarter 2006.

2. Invoice #33696 dated August 4, 2006 in the amount of $17,818.55 from Brandywine Global for investment management services for traditional account for 2nd quarter 2006.

3. Invoice #33561 dated July 13, 2006 in the amount of $13,240.84 from Brandywine Global for investment management services for global account for 2nd quarter 2006.

4. Invoices #316993 - $11,496.36 and Inv. #317189 - $1,581.95 from Comerica Bank for custodial services for 2nd quarter 2006. Minutes Monroe County Employees Retirement System Board of Trustees

5. Invoice dated July 31, 2006 in the amount of $1,435.00 from Comerica Commercial Card Services for registration fees for 2006 MAPERS Fall Conference, registration for hotel for one trustee and registration fee for one day seminar for one trustee.

6. Invoice dated July 26, 2006 in the amount of $26,678.45 from Franklin Templeton Investment for investment management services for 2nd quarter 2006.

7. Invoice #98366A dated July 13, 2006 in the amount of $10,957.00 from Gabriel, Roeder, Smith & Co. progress billing for pension customizations to Core System and web hosting fee for 12-month period starting August 1, 2006.

8. Invoice dated August 1, 2006 in the amount of $61,962.62 from Morgan Stanley for consultant fee of vision accounts for 2nd quarter 2006.

9. Invoice #024016-0001 dated July 5, 2006 in the amount of $26,401.88 from NWQ Investment Management for investment management services for 2ne quarter 2006.

10. Invoice #024016-0002 dated July 5, 2006 in the amount of $28,840.30 from Tradewinds NWQ Global Investors for investment management services for 2nd quarter 2006.

11. Invoice dated August 10, 2006 in the amount of $9,072.00 from Pacific Income Advisers for investment management services for 2nd quarter 200.

12. Invoice dated July 24, 2006 in the amount of $5,681.60 from VanOverbeke, Michaud & Timmony, P.C. for legal services rendered for 2nd quarter 2006.

Refunds

Motion by David Scott, supported by Jim Davies to pay the following refunds:

1. Kess Booker, Sheriff’s Office $35,258.18 2. AG Edwards & Sons, FBO Kess Booker $36,703.03 3. Michelle Lamarre, Central Dispatch $12,825.80 4. Phillip Markell, Sheriff’s Office $11,156.04 Minutes Monroe County Employees Retirement System Board of Trustees

5. Daniel Warren, Road Commission $28,105.51 6. Pershing, LLC, FBO Daniel Warren $22,102.65

Retirement Payments

Motion by Jerry Oley, supported by Jim Morgan to pay the following retirement payments:

1. Kess Booker, Sheriff’s Office $4,859.50 (July – 1,721.08; Aug – 3,138.42) 2. Daniel Warren, Road Commission $2,386.09

Communications

1. Letter dated August 7, 2006 from Franklin Templeton Investments concerning loss of company laptop computer.

Motion by David Scott, supported by George Jondro to accept and place on file. All in favor, motion carried.

2. Application from Wilbur O. Burkett, Friend of Court employee requesting to purchase five months of CETA Service Time.

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

Proposed Resolutions

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

1. Thomas A. Morris, Probate Court – Application for Service Retirement 2. Gary Poupard, Youth Center – Application for Deferred Retirement 3. Jerry Spence, Empl. & Training – Application for Service Retirement 4. Kess Booker, Sheriff’s Office – Service Retirement 5. Daniel Warren, Road Commission – Service Retirement Minutes Monroe County Employees Retirement System Board of Trustees

6. Policy Resolution on Crediting of Interest on Accumulated Member Contribution Account Balances.

Motion by Jerry Oley, supported by Jim Davies to accept, place on file and send to Administrative Committee to review and report back. All in favor, motion carried.

Attorney Report

 Trustee and Member handbook

Jim Morgan asked that the following be included in the trustee handbook  Collective bargaining agreements for Road Comm & Mental Health  Resolution on Part-time employees for Road Comm & Library  Election procedure for Road Commission

Mr. VanOverbeke updated the Board on a deposition given by Chairman Thompson in Delaware regarding documentation that was requested from Hewlett Packard. The CEO was forced to resign and her severance package might have violated the policy that the shareholders had voted on. Mr. Michaud also accompanied Mr. Thompson.

Consultant’s Report

Mr. Galanis reviewed the evaluation update for the period ending July 31, 2006. The Retirement System is down $152,285.43 from previous month. Fund is now valued at $166,567,552.38. Mr. Galanis also reviewed the 2nd quarter Investment Manager Performance Report. The portfolio is up 10 basis points through June 2006. Templeton Portfolio Advisors performance is 2.16 while their benchmark if .96, with year to date 10.5 with their benchmark at 10.09. They are still on the watch list until the end of the year.

Mr. Galanis suggested to transfer $4 million from NWQ LV to Tradewinds NWQ and $4 million from Brandywine LV to Brandywine Global. This will increase foreign bonds and decrease equity. The portfolio will still be within the allocation guidelines. Motion by Jim Davies, supported by Jerry Oley to adopt recommendations by Mr. Galanis. All in favor, motion carried. Minutes Monroe County Employees Retirement System Board of Trustees

Old Business

 Disability Retiree Re-examinations  David Webb Due to his disability, he is having a hard time getting to his appointment. Motion by David Scott, supported by George Jondro to have Mr. Webb’s treating physician send the Board a medical report stating that he is confined to a wheelchair and the re- examination will be waived. All in favor, motion carried.

 Mark Winter Waiting for a call from Mr. Winter or the doctor to see if Mr. Winter has had his re-examination

 Ronald Whited Legal gave a brief overview of the medical advisor’s report. If the Board concurs with the medical report, Mr. Whited’s pension will be terminated. If he is not re- employed by the County, he will then go on a deferred retirement and be able to start collecting his pension at age 60. Motion by Dave Scott, supported by Jim Davies to accept the report and adopt the resolution.

Mr. Oley is concerned that if the Board accepts the report and adopts the resolution, Mr. Whited would loose his disability pension benefits if the County does not hire him back. He believes a second opinion is needed then the employer can make a decision. Also, were the tests that were given by the medical advisor adequate.

Mr. Whited had the impression that if the doctor’s findings were that he was medically able to return to work then when someone retires from the Sheriff’s Office he would be hired back. He is ready to go back to work.

Mr. VanOverbeke told the Board that they must administer the plan only, the issue of re-employment is a labor issue. The Board can consider reasonable latitude to either send him to another specialist for a second opinion or extend the period of pension benefits. That would give him time to either be re-employed with the County or seek outside employment

Mr. Thompson said the medical advisor is a specialist. The employer could send Mr. Whited to a specialist and if that determination is different from the Board’s medical advisor’s report, the Board could send him for a third opinion.

Mr. VanOverbeke said Mr. Whited has the right to appeal the Board’s decision. Minutes Monroe County Employees Retirement System Board of Trustees

Mr. Scott amends his motion to accept the report, adopt the resolution and extend Mr. Whited’s disability pension benefits until such time as re-employed by the County, finds other employment or ninety days, whichever comes first. All in favor, motion carried.

 Disability Exam  Michael Holt – waiting on medical reports from his doctor before setting up his examination.

New Business - none

Trustee Comments

 Jerry Oley would like to discuss the Retirement System paying for use of the computers for the monthly meetings. Dave Thompson suggested having the County send a proposal to the Retirement Board to discuss.

Motion by Dave Scott, supported by Jim Davies to adjourn. All in favor, motion carried. Meeting adjourned at 6:35 P.M.

Respectfully Submitted,

David Thompson, Chairman Monroe County Employees Retirement System Board of Trustees