Dearborn Heights (Mich.) Employee Pension System narrowed a search for its first domestic fixed-income manager for the $35 million General Government Pension Board, said John Riley II, executive director. Finalists for the $15 million mandate are incumbents Loomis, Sayles and Rhinehart & Mahoney. Each currently runs $15 million in balanced accounts. Salomon Smith Barney, the funds consultant, recommended switching from balanced accounts to domestic fixed income. The $101 million Police & Fire Pension Plan also is part of the Dearborn system.