HomeMy WebLinkAboutMinutes - 10/11/2016 - Police Pension Board7
Meeting of the Police Pension Board of Trustees
October 11, 2016
333 S Green Street, McHenry, IL 60050
Agenda Item #1Call to Order.
A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:30
PM
Agenda Item #2 Roll Call.
President Jeffrey Foerster, Ormel Prust, Jon Meyer. Absent: Kelly Ducak, Marc Fisher. Others
present: Jim Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc.; and recording secretary
Joan Lunsmann.
Agenda Item # 3 Public Input.
None.
Agenda Item #4 Approval of Minutes.
O. Prust made a motion, seconded by J. Meyer to approve meeting minutes from July 12, 2016 as
presented and to hold them for audit.
Ayes: Prust, Foerster, Meyer
Nays: None
Absent: Ducak, Fisher
Abstain: None
Motion carried
Agenda Item #5 New Business.
a) Presentation and Motion to approve Treasurer Report as presented.
None.
b) LPL Financial Equities Report.
Jim Schmidt of LPL Financial reported the past two quarters were nearly identical. The
markets did not move much and are down today. Equities are up 7.41 % year-to-date. A
Performance Detail by Asset Class report was distributed highlighting each of the funds.
Again, not much changed since last quarter. Market Value as of 12/10/16 was
$12,403,045.82, up from the same period last year, which was at $11,547,068.67.
c) Capital Gains Fixed Assets Investment Report.
Fixed Assets Manager Gary Karshna presented the investment report for the period ending
`' September 30, 2016 at which time the estimated Market Valuation was $8,998,269 and
Book Valuation $9,068,071. Mr. Karshna reported the bond market has not varied much
from last quarter. Small positions of US longer -term Treasury bonds in 10-30 year
maturity ranges will be added on price dips and longer -term bonds will be sold after
significant rallies.
d) Semi-annual review & discussion of Police Pension Fund Investment Policy.
Mr. Karshna noted on page 5, the Fixed Income Maximum should be 59%, not 58% as
presented in the policy. Also, he recommended that the Fixed Asset and Equities
Managers, and Board Attorney sign -off on the policy as well as the board. It will show
they have read and will abide by the policy.
J. Meyer made a motion, seconded by O. Prust to amend the Police Pension Fund
Investment Policy, Page 5, Fixed Income Maximum to 59% and revised signature page to
include Investment Managers and Board Attorney.
President Foerster asked that Agenda Item #6 be considered later in the meeting.
Agenda Item #7 Motion to approve application to Police Pension Fund submitted by Officer Bryan
M. Wegner.
President Foerster told the board Officer Wegner was hired last July 15, 2016.
O. Prust made a motion, seconded by J. Meyer to approve the application to join the Police Pension
Fund submitted by Officer Bryan M. Wegner.
Ayes: Prust, Foerster, Meyer
Nays: None
Absent: Ducak, Fisher
Abstain: None
Motion carried
Agenda Item #8 Motion to approve application for Retirement Benefits from Daniel Kreassig.
President Foerster told the board Sgt. Daniel Kreassig retired on July 5, 2016, after 27 years with
the McHenry Police Department. He retired at the annual salary of $98,793 and his annual benefit
will be $66,685.28, or 67.5%.
J. Meyer made a motion, seconded by O. Prust to approve the application for Retirement Benefits
submitted by Daniel Kreassig as presented.
Ayes: Prust, Foerster, Meyer
Nays: None
Absent: Ducak, Fisher
Abstain: None
Motion carried
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Agenda Item 49 Motion to qpprove the purchase of service -time for unpaid leave for Officer
Christina K. Torkelson and another Motion to improve the purchase of service -time for unpaid
leave for Officer Tanya Stone.
President Foerster reported as Officer Stone is still on unpaid leave, her request will not move
forward at this time. In addition Officer Torkelson has withdrawn her request. Therefore, no action
is required on this agenda item.
Agenda Item #10 Motion to accept the annual Independent Medical Examination for Police
Disability Pensioner Justin DeBolt.
J. Meyer made a motion, seconded by O. Prust to approve the Police Disability Pension for Justin
DeBolt as presented.
Ayes: Meyer, Prust, Foerster
Nays: None
Absent: Ducak, Fisher
Abstain: None
Motion carried
Agenda Item # 1 I Unfinished Business
a) Motion to approve bills as presented:
J. Meyer made a motion, seconded by O. Prust to approve the list of bills as presented:
Puchalski Goodloe Marzullo LLP
Jon Meyer
Mesirow Insurance Services
Bankcard Processing Center
Capital Gains
Exam Works Inc
Tim Sharpe
Ayes: Meyer, Prust, Foerster
Nays: None
Absent: Ducak, Fisher
Abstain: None
Motion carried
Legal Services
$563.30
Training Reimbursement
$335.00
Fiduciary Liability Ins. Renewal
$4,331.00
IPPFA Dues
$1,660.00
Investment Mgmt. Services
$4,942.00
Debolt IME
$1,600.00
Actuarial Services
$2,900.00
b) Public Pension Trustee Training Update.
Trustees were reminded to submit certificate of completion for 2016-17 IPPFA ethics
training to Marci.
c) Motion to approve 2017 Meeting Schedule.
O. Prust made a motion, seconded by J. Meyer to approve the 2017 meeting schedule as
follows: January 3, April 25, July 11, and October 10. All meetings will begin at 3:30 PM.
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Ayes: Meyer, Prust, Foerster
Nays: None
Absent: Ducak, Fisher
Abstain: None
Motion carried
Agenda Item #6 Review RFP's for Police Pension Fund Actuarial Services for Plan Year
commencing May 1, 2017 and Motion to approve the selection of a firm as presented.
Requests for Proposals were submitted by Foster & Foster, Oakbrook Terrace, IL; Lauterbach &
Amen, LLP, Warrenville, IL; and MWM Consulting Group, Chicago, IL. After discussion
regarding each firm, it was the consensus of the board to accept the proposal from Lauterbach &
Amen, LLP.
O. Prust made a motion, seconded by J. Meyer to accept the proposal submitted by Lauterbach &
Amen, LLP to perform actuarial services for the fiscal years ending April 30, 2017 through April
30, 2019, for the cost of $4,750 per year. Fee includes attendance at up to two meetings per year.
Any additional meeting attendance required will be billed at the rate of $250 per meeting.
Ayes: Meyer, Prust, Foerster
Nays: None
Absent: Ducak, Fisher
L Abstain: None
Motion carried
Agenda Item #12 Adjournment.
J. Meyer made a motion, seconded by O. Prust to adjourn the meeting.
The meeting was adjourned at 4:30 PM. Next meeting is January 3, 2017.
Respectfully submitted,
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