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HomeMy WebLinkAboutMinutes - 07/15/2014 - Police Pension BoardPolice Pension Board of Trustees Meeting July 15, 2014 A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:30 pm by President Jeff Foerster. Other board members present were: Jon Meyer, Ormel Prust, Kelly Ducak, and Marc Fisher. Others present: Jim Schmidt, LPL Financial; and temporary replacement recording secretary Joan Lunsmann. Capital Gains, Inc. representative Gary Karshna joined the meeting at 3:40 pm. Public Input None Approval of Minutes Prust moved that the minutes of the April 8, 2014 meeting be approved as presented and held for audit. Meyer seconded. There was no discussion. Unanimous voice vote to approve. Annual Election of Board Members Pres. Foerster called for nominations for the office of president. Meyer nominated Jeff Foerster. No other nominations received. Foerster called to close nominations. Moved by Prust, seconded by Meyer. Voice vote was unanimous for the election of Jeff Foerster as president. Foerster called for approval of a unanimous ballot to be entered by the secretary for Jeff Foerster as president. Fisher so moved, Ducak seconded. Vote entered for the election of Jeff Foerster as president. Foerster then called for nominations for the office of vice-president. Fisher nominated Jon Meyer for vice-president. Foerster called to close nominations. Moved by Prust, seconded by Fisher. Voice vote was unanimous for Jon Meyer as vice-president. Foerster called for approval of a unanimous ballot to be entered by the secretary for Jon Meyer as vice-president. Fisher so moved, Ducak seconded. Vote entered for the election of Jon Meyer as vice-president. Foerster then called for nominations for the office of secretary. Prust nominated Kelly Ducak for secretary. No other nominations received. Foerster called to close nominations. Moved by Meyer, seconded by Fisher. Voice vote was unanimous for Kelly Ducak as secretary. Foerster called for one unanimous ballot to be entered by the secretary for Kelly Ducak as secretary. Fisher so moved, Meyer seconded. Vote entered for the election of Kelly Ducak as secretary. Foerster then called for nominations for the office of assistant secretary. Meyer nominated Mel Prust for assistant secretary. No other nominations received. Foerster called to close nominations. Moved by Meyer, seconded by Fisher. Voice vote was unanimous for Mel Prust as assistant secretary. Foerster called for one unanimous ballot to be entered by the secretary for Mel Prust as assistant secretary. Fisher so moved, Meyer seconded. Vote entered for the election of Mel Prust as assistant secretary. Treasurer Report Attached. Per Carolyn Lynch, approximately half the employer contribution has been received. At the next meeting, she will have a figure of cash needed to end of year. No further discussion. Motion by Ducak, seconded by Meyer 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. Balance currently at $11.5 million. Recommendation to add Good Harbor Tactical Equity Income Fund. Jim has not been happy with performance of Ivy Asset. Believes Good Harbor is more aggressive, and able to go quickly to cash. Different management philosophy. Our account is not able to go to private account so recommendation to go to a mutual fund. Fees are 1% up front and 1.5% per year. 1. Schmidt recommends staying at 55%. Take initial cost out of Ivy Asset. Meyer opened a discussion about a discrepancy in figures on the hand-out. 2. Foerster asked that this be tabled until the next meeting. Fisher asked if Jim Schmidt could obtain a letter from the Dept. of Insurance with an opinion on going to the private fund or the mutual fund. Jim will also ask a representative of Good Harbor to attend the next meeting to clarify the figures. Next quarterly meeting is scheduled for 10/14/14. 3. Meyer also asked Schmidt to provide a quarterly index to allow for better oversight. Schmidt agreed to provide. b. Capital Gains, Inc.: Attachments Took a few minutes to discuss a new product called mini -bonds. Interesting concept. 1. Interest rates have shown very little movement and will remain the same until 2015. Recommendation to stay short, as currently. Portfolio is doing well. No questions for Gary. Fiduciary Liability Insurance �. Foerster advised the Fiduciary Liability Insurance with ULLICO is up for renewal. $3900. Meyer moved to renew, Prust seconded. No discussion. Voting Aye: Ducak, Prust, Meyer, Fisher, Foerster Voting Nay: None Abstain: None Absent: None Motion carried. Annual premium of Approval of annual pension payment increase Todd Intravartolo turned 50 last month, making him due for a pension increase to $4618.10 monthly, $55417.20 yearly, effective 8/1/2014. Fisher moved to approve the pension increase for Intravartolo. Seconded by Ducak. Voting Aye: Prust, Meyer, Fisher, Ducak, Foerster Voting Nay: None Abstain: None Absent: None Motion carried. Application to join pension fund from Joshua Conwav Recently hired employee, J. Conway has applied to join the pension fund. Meyer moved to accept application. Prust seconded. Unanimous voice vote to approve application. Review of disability pensions for D. King and J. DeBolt No report has been received on D. King. Rejected pending receipt of report. \.. Report received on J. DeBolt, stating that he is currently totally disabled in reference to police activity. Fisher moved to accept the report on J. DeBolt. Seconded by Ducak. Unanimous voice vote to accept the report. There were no executive session minutes to approve. Public Pension Training Update Presented were affidavits signed by Prust and Foerster, bringing them up to date with training. Approval of bills Bills presented for payment: Dr. visit for Dan King $147.00 Dr. visit for J. DeBolt 171.00 Capital Gains Inc. 5083.00 Meyer moved to approve bills presented for payment. Seconded by Fisher. Voting Aye: Ducak, Fisher, Foerster, Prust, Meyer Voting Nay: None Abstain: None Absent: None Motion carried Adiournment Foerster called the meeting to a close. Ducak moved to adjourn. Fisher seconded. Voting Aye: Ducak, Fisher, Prust, Meyer, Foerster Voting Nay: None Abstain: None Absent: None Motion carried The meeting was adjourned at 4:10 pm.