HomeMy WebLinkAboutMinutes - 10/13/2015 - Police Pension BoardPolice Pension Board of Trustees Meeting
October 13, 2015
A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:28 pm by President Jeff
Foerster. Other board members present were: Ormel Prust, Kelly Ducak, and Marc Fisher. Absent: Jon Meyer.
Others present: Capital Gains, Inc. representative Gary Karshna, LPL Financial representative Jim Schmidt and
temporary replacement recording secretary Joan Lunsmann.
Public Input
None
Approval of Minutes
Prust moved that the minutes of the July 14, 2015 meeting be approved as presented and held for audit. Fisher
seconded. There was no discussion. Unanimous voice vote to approve.
Treasurer Report
Per Carolyn Lynch, balance at approx. $20.7.
The annual financial report was presented for Pres. Foerster to sign and will be presented to the city council. This
shows a pension funding requirement from the city of $1.5 million.
Motion by Fisher, seconded by Prust to approve the Treasurer report as presented and hold it for audit. Unanimous
voice vote to approve the Treasurer's report and hold for audit.
Investment Reports
a) LPL Financial: Jim Schmidt. Attachments.
Discussion involving volatility that usually occurs in the fall. Small cap global showed an increase of
2.71%. Several other funds, new world and emerging world, were down. End result is lower than last
report.
b. Capital Gains, Inc.: Gary Karshna Attachments
In the bond market, there was a small rally. Market is fairly flat due to interest rates. The Fed may do
something with rates yet this year, but most likely next year. Recommendation to stay the course, buy
short term securities. There is less risk in the current portfolio. Rate of return is under 1%.
Actuarial Valuation Report
a. A tele-conference with Actuary Tim Sharpe began at 3:42 pm. Each member was given a copy of the
Actuarial Valuation Report for May 1, 2015 —April 30, 2016. Tim covered the procedure changes that
regulations required. In the 4 tables, mortality, disability, turnover, and retirement, an increase in life
expectancy forced changes. The tax levy is higher by approx. $100,000 due to the new tables. The fund
is approximately 52.9 % funded. Expenses should hold steady for the foreseeable future due to the age
of the participants. Fund should grow by approx $1.5m. Tax levy requirement has a statutory minimum of
$1.524m. Demographics are currently 11-1 and will go to 14/15 —1.
Foerster asked for a motion to request $1.5m from the city for the upcoming year and approve the
report as printed. Motion by Ducak, seconded by Fisher. Roll called.
Voting aye: Foerster, Prust, Fisher, Ducak.
Voting Nay: None
Abstain: None
Absent: Meyer
Motion carried.
�. Application for Pension:
Probationary Police Officer Brett Kinney submitted application to be included in the pension plan. All paperwork has
been submitted. Prust moved to accept B. Kinney into the plan, seconded by Ducak. Voice vote, all ayes. So
ordered.
Probationary Police Officer Ryan Ehardt submitted application to be included in the pension plan. All paperwork has
been submitted. Fisher moved to accept R. Ehardt into the plan, seconded by Prust. Voice vote, all ayes. So
ordered.
Approval of bills
Bills presented for payment:
See attached listing.
Ducak moved to approve bills presented for payment. Seconded by Fisher.
Voting Aye: Foerster, Prust, Fisher, Ducak
Voting Nay: None
Abstain: None
Absent: Meyer
Motion carried
Review of Police Pension Fund Investment Policy
Gary with Capital Gains, Inc. suggested to change the item on page 5 and raise the maximum cash on hand to
20 or 30%. Although rare to get to 30%, it allows for some flexibility. He also suggested removing IMET as an
option plan. There are some issues with IMET and the fund will not be used until they are resolved. Jim with
LPL Financial suggested a 65% equity, 30% cash split. Prust put forth a motion to approve all 3 changes,
seconded by Fisher.
Voting Aye: Foerster, Prust, Fisher, Ducak
Voting Nay: None
Abstain: None
Absent: Meyer
Motion carried
Training Review
Foerster reminded the members that training re -sets to zero in August. There is a November training that
Foerster and Prust plan to attend.
2015 Meeting Schedule
List of meeting dates for 2016 was provided to members. Fisher put forwarded a motion to approve as
presented. Ducak seconded. Voice vote, all ayes. Motion approved to accept the meeting dates as
presented.
Foerster advised that the attorney for Officer Mark Gandor has not contacted the board attorney. It has been
suggested that the board set a date for a hearing. Tentatively set for November 18, 2015 in the afternoon. Notice
will be sent to members once confirmed.
Adjournment
Foerster called the meeting
to a close. Prust moved to adjourn. Ducak seconded.
Voting Aye:
Foerster, Prust, Fisher, Ducak
Voting Nay:
None
Abstain:
None
Absent:
Meyer
Motion carried
`.. The meeting was adjourned at 4:10 pm.
Joan Lunsmann, City of McHenry