HomeMy WebLinkAboutMinutes - 01/18/2011 - Police Pension BoardJanuary 18, 2011 Police Pension Board Meeting
Meeting called to order at 3:40 pm by Bob Roske. Present were Bob Roske, Brian Aalto, Dan
Kinnerk, Ormel Prust, Carolyn Lynch, Jim Schmidt, & Joan Lunsmann. Absent: Bob
Hetterman, Gary Karshna.
Motion by Prust, seconded by Kinnerk to approve minutes of the 10/19/2010 meeting.
Treasurer's Report:
Carolyn Lynch provided the treasurer's report, indicating funds were flat last quarter. Stocks
assisted bonds to help the overall increase. It is important to note that there will be no cash for
payments in April. Money should be moved from money market to cover, approximately
$200,000. Carolyn Lynch will be in contact with Gary Karshna to move funds and make sure
they are available for payments. There will be a CD mature in June for approx. $994,000.
Motion to accept the treasurer's report made by Kinnerk, seconded by Aalto.
Jim Schmidt provided an overview of the report prepared by Gary Karshna. Interest rates are
trending up and his recommendation is to stay short term. Bonds will have a difficult year. Gary
is keeping bond investments short term.
Jim reported international funds are struggling due to the economic climate in Europe and the
Euro being the single currency. The international fund is lagging behind other funds. Rules
have been changed to allow 50% investment as of 7/l/2011, up to 55% as of 7/1/2012, with $10
`. million in assets. Jim would recommend adding a fifth fund to increase percentage, a large cap
growth fund. The market is forcing funds into additional risk. Two points to be made: stay
short term and accept rates as they are. Look in June into adding the large growth fund.
Jim Schmidt left the meeting at 4:00 pm.
New Business:
RFP letter distributed by Roske for review. No negative comments. Letter will be prepared and
forwarded to several bond managers for presentations. This indicates the board performing due
diligence towards their fund. Kinnerk moved and Aalto seconded to approve the letter as is and
send it out.
Request by Roske for approval of Ofc. John Adams credited hours. He is asking Antioch Police
Dept to provide his credited funds to roll-over to this fund. Tim Sharp is reviewing the check
received from Antioch, to determine if the percentage paid matches what our officers are paying.
We have received a $75,000+ check that is being held pending Sharp's review. Roske requested
by motion a tentative approval to deposit the check once approval is given. Kinnerk seconded
with the stipulation that Tim Sharp approves. Official approval will be requested at the next
meeting.
Pension Increases: Kinnerk questioned increase for Mike Oliver. Carolyn explained that the
increase is due to Oliver turning 60 years old. Prust moved to approve the increases. Aalto
11N.-I seconded.
�. Training: Roske gave dates of upcoming training sessions. At least 8 hours is required by state
for each existing member, an additional 8 hours for new members, which would include Brian
Aalto. Dan Kinnerk advised he will not be attending training. His intention is to step down prior
to next election in March. There is no need for him to attend training and then require the board
to send his replacement to training also. Discussion about Bob Hetterman's status for next
election. It is unknown. Roske will make arrangements for himself, Aalto and Prust to attend
the session in March in Rockford. Per Carolyn, Marci handles the payment for this training.
Approval requested to accept new officer, Christina O'Brien to the pension system. Hired
1/5/2011 and is currently in Police Training Institute. Kinnerk moved to accept O'Brien as of
1 /6/2011. Prust seconded.
Puchalski's office has relocated from Chicago to Libertyville.
Other issues: Carolyn will follow up with Gary Karshna on moving funds from money market
to cover expenditures in April, and until CD matures in July. Motion made by Kinnerk at this
time to approve moving those funds as necessary. Seconded by Prust. That precludes the need
for a special meeting to move funds.
Roske advised the next meeting will be 4/10/2011 at 3:30 pm. Prust moved, Kinnerk seconded.
Meeting adjourned at 4:18 pm.