HomeMy WebLinkAboutMinutes - 01/08/2019 - Police Pension Board
Police Pension Board of Trustees
January 8, 2019
Meeting Minute
Call to Order
A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 2:30 pm in the
McHenry City Council Chamber, 333 S. Green Street, McHenry, IL.
Roll call:
Members present: Jeffery Foerster, Nick Clesen, Marc Fisher and Cheryl Kranz. Others present: Jim
Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc. and Finance Director Lynch. There was a quorum
present.
Public Input
None.
Meeting Minutes:
Motion to approve the October 16, 2018 meeting minutes.
President Foerster asked if any of the members had any comments or questions with respect to the
October 16, 2018 meeting minutes. The Members offered no comments. A Motion was made by Member
Fisher and seconded by Member Clesen to approve the October 16, 2018 meeting minutes as presented.
Roll call: Vote: 3-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Investment Reports
Presentation and Motion to approve Treasurer’s Report
The Treasurer’s Report was not presented at this time.
LPL Financial Equities Report
Mr. Schmidt provided the Pension Board Members with an overview of the 2018 year end equities report.
He reported that the markets had performed poorly this year and on paper the equities investments as a
whole was down by 6%.
Capital Gains, Inc, Fixed Income Report
Mr. Karshna provided the Pension Board Members with an overview of the Fiscal Year 2018-19 Portfolio
Report. He reported that seventy-eight percent of the Police Pension Portfolio is invested in corporate
bonds, with the balance invested in a diversified mix of US government and municipal bonds. Mr. Karshna
went on to report at this time, in his opinion corporate bonds are the preferred security, due to their
higher yields.
Mr.Karshna provided the Pension Board Members with an overview of the 2018 Fixed Income Portfolio.
He highlighted several newly acquired securities. President Foerster asked if Mr. Karshna had considered
in the future exploring investing in CD’s. He noted that CD’s rate of return has recently increased. Mr.
Karshna reported that he would investigate the CD market’s current rate of returns and report back.
New Business
Retiree Death Monitoring Service
President Foerster discussed a new program in which IPPFA has partnered with the accounting and
pension administration firm of Lauterbach & Amen, LLP. They offer a secure and free service to assist
various pension funds such as IMRF and Chicago Police and Fire with death auditing services. President
Forester stated at this time he would entertain a motion to enter into an agreement with Lauterbach &
Amen, LLP to authorize participation in their Death Audit Service program. A Motion was made by Vice
President Clesen and seconded by Secretary Fisher to authorize participation in the Lauterback & Amen,
LLP Retiree Death Monitoring Service Program. Roll call: Vote: 3-ayes: Vice President Clesen, Secretary
Fisher and President Foerster. 0-nays, 0-abstained. Motion carried.
Status of Police Pension Fund Disability Application of Sean Klechak
President Foerster reported that he had spoken with Attorney Goodloe and she had informed him that
Officer Klechak had completed his medical examinations and believes the reports should be available
within the next couple months.
Motion to approve annual pension increases
President Foerster distributed a list of pensioners that are eligible for a monthly pension increase effective
various times in 2019. A Motion was made by Vice President Clesen and seconded by Secretary Fisher
to approve the annual pension increases. Roll call: Vote: 3-ayes: Secretary Fisher, Vice President Clesen
and President Forester. 0-nays, 0-abstained. Motion carried.
Status of appointments to the Police Pension Board
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President Foerster reported that on January 21 Mayor Jett will asked the Council Members to concur
with his appointment of Ms. Cheryl Kranz to fill the vacant McHenry Police Pension Board of Trustees
position which will expire on April 30, 2020.
Approve Laura Goodloe to serve as the Pension Board’s FOIA Officer
President Foerster stated that at this time he would entertain a motion to appoint the Pension Board’s
Attorney Laura Goodloe to serve as the Pension Board’s FOIA Officer. A Motion was made by Secretary
Fisher and seconded by Vice President Clesen to appoint Attorney Goodloe to serve as the Police
Pension Board’s FOIA Officer. Roll call: Vote: 3-ayes by unanimous voice vote. 0-nays, 0-abstained.
Motion carried.
Unfinished Business
Motion to approve payment of bills as present
President Foerster stated that at this time he would entertain a motion to approve the payment of bills
as follows:
Puchalski, Goodloe, Marzullo- Attorney Fees -$921.18.
IPPFA-Pension Conference-$830.00
Capital Gains-5,032.00
A Motion was made by Secretary Fisher and seconded by Vice President Clesen to approve the payment
of bills as present. Roll call: Vote: 3-ayes: Secretary Fisher, Vice President Clesen and President Foerster.
0-nays, 0-abstained. Motion carried.
Public Pension Trustee Training Update
President Foerster reported that he along with Vice President Clesen and Secretary Fisher had completed
their annual 16 hours of continuing Trustee training. In addition, Ms. Cheryl Kranz is aware and has agreed
to complete the Pension Board training requirements.
Adjournment
There being no further public business to discuss, a Motion was made by Secretary Fisher and seconded
by Vice President Clesen to adjourn from the public meeting at 3:05 pm. Roll call: Vote: 3-ayes by
unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Respectfully submitted,
Debra Meadows