HomeMy WebLinkAboutMinutes - 4/12/2022 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting Minutes
April 12, 2022
Call to Order
The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 9:00
a.m. at McHenry City Hall, 333 S Green St, McHenry, IL.
Roll call:
Members present: President Jeffery Foerster, Cheryl Kranz, Sergeant Nick Clesen, Thomas Settles.
Members absent: Officer Robert Beaudoin. Others present: Monte Johnson, Carolyn Lynch, Gary
Karshna, James Schmidt.
Public Input:
No members of the public were present to offer comments.
Approve the January 11, 2022, meeting minutes
A motion was made by Tom Settles and seconded by Sergeant Clesen to approve the minutes from
January 11, 2022. Roll Call Vote: 4-ayes: Jeff Foerster, Cheryl Kranz, Sergeant Clesen, Thomas Settles. 1-
Officer Beaudoin. Motion carried.
Presentation and motion to approve the Treasurer’s Report
James Schmidt will ensure that the pension fund will be below the required threshold by the end of the
month. A motion was made by Tom Settles and seconded by Cheryl Kranz to approve the Treasurer’s
Report as presented. Roll Call Vote: 4-ayes: Jeff Foerster, Cheryl Kranz, Sergeant Clesen, Thomas Settles.
1-Officer Beaudoin. Motion carried.
LPL Financial Equities Report
Jim Schmidt reported that the $4 trillion in printed money has caused inflation. We now have to adjust
our strategy and what we want to do with our portfolio. Growth stocks, international stocks, and
commodities will struggle in this environment. Value does better, and it is recommended by Mr. Schmidt
that we increase the value part of our portfolio and decrease the international exposure. At present we
are at 72% equities and he will transfer money out to get us below 65% before the end of April. The
investment strategy that was shared on his handouts will probably be utilized long term.
Capital Gains, Inc. Fixed Assets Report
Mr. Karshna reported that inflation has been rising along with interest rates. This trend will probably
continue for a while. He reviewed the interest rate table and discussed what rates were a year ago
compared to today. As of today the benchmark is down 4.5% but we are only down 1.11%. Over the last
12 months the market benchmark is down 4.2% and we are only down .19%. We will continue
purchasing short term investment grade bonds. This is currently a good market if you have case to buy
short term bonds.
Semi-annual review of the Police Pension Board Fund Investment Policy
President Foerster reported that this policy was last updated in April of 2021, and it was agreed upon
that no changes are needed.
Motion to approve the payment of bills
President Foerster read the listed bills aloud. The total amount of bills to be paid equals $88,345.14. A
motion was made by Cheryl Kranz and seconded by Sergeant Clesen to approve the payment of bills as
presented. Roll Call Vote: 4-ayes: Jeff Foerster, Cheryl Kranz, Sergeant Clesen, Thomas Settles. 1-Officer
Beaudoin. Motion carried.
Accept pension retirement of Jack Zumwalt, as calculated by Lauterbach & Amen
President Foerster reported that Jack retired after working for almost 11 years. He is a Tier-2 retiree,
and the benefit calculations have been finalized by Lauterbach & Amen. A motion was made by Thomas
Settles and seconded by Sergeant Clesen to accept the pension retirement of Jack Zumwalt, as
calculated by Lauterbach & Amen. Roll Call Vote: 4-ayes: Jeff Foerster, Cheryl Kranz, Sergeant Clesen,
Thomas Settles. 1-Officer Beaudoin. Motion carried.
Review the IPOPIF Cash Management Policy and motion to submit the Enterprise Cash Flow Module
and MyStateStreet.com Access Form
President Foerster explained that the State pension fund is wanting to take our funds by June 1st. We are
not required to submit our funds yet, and there is no penalty listed for not turning over our funds. We
already submitted our representatives to the IPOPIF. The pending lawsuit from other pension funds was
discussed, and it was decided that we should see how that lawsuit plays out or wait until we are forced
to turn over our funds. Sergeant Clesen explained that we might want to watch things closely because
even though there is no penalty, the Courts could require us to turn over funds, and we could be found
in contempt of court for not complying. A motion was made by Thomas Settles and seconded by Cheryl
Kranz to hold on to our funds for the time being and to not turn over the funds to the IPOPIF. Roll Call
Vote: 4-ayes: Jeff Foerster, Cheryl Kranz, Sergeant Clesen, Thomas Settles. 1-Officer Beaudoin. Motion
carried.
Review and possible aproval of IPOPIF Exhibit B Notice regarding Transfer of Investment Assets to the
Police Officers’ Pension Investment Fund
No action was taken on this matter as the Board decided not to turn over the funds at this time.
Additional Items for Discussion
Cheryl Kranz will be reappointed at the next Council meeting to serve for two more years.
Semi-Annual Review of Executive Session Minutes
There is only one set of executive session minutes that has not yet been approved or released, and that
is of the recent hearing for Sergeant Lumber. No action will be taken on this set of minutes until the
next release date.
Motion to Adjourn
A motion was made by Tom Settles and seconded by Sergeant Clesen to adjourn at 9:56 a.m. Roll Call
Vote: 4-ayes: Jeff Foerster, Cheryl Kranz, Sergeant Clesen, Thomas Settles. 1-Officer Beaudoin. Motion
carried.
______________________________
Monte Johnson, Recording Secretary