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.