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HomeMy WebLinkAboutMinutes - 10/08/2019 - Police Pension Board Police Pension Board of Trustees �, cnry Regular Meeting Minutes October 8,2019 Call to Order The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 2:30 p.m. in the City Council Chambers at 333 S. Green Street, McHenry, IL. Roll call: Members present: President Jeffery Foerster, Ann Buss, Cheryl Kranz. Absent: Officer Marc Fisher, Sergeant Nick Clesen. Others present: Monte Johnson, Carolyn Lynch, Gary Karshna, James Schmidt, Kevin Cavanaugh Public Input: No members of the public were present to offer comments. Meeting Minutes A motion was made by Ann Buss and seconded by Cheryl Kranz to approve the minutes of the meeting on July 9, 2019. Vote: 3-ayes by unanimous voice vote. 0-nays,0-abstained., 2-absent. Motion carried. Presentation of Actuarial Valuation Report and recommendation to forward Pension Fund Tax Levv request to McHenry City Council Mr. Cavanaugh presented and explained the Actuarial Funding Report. The recommended contribution for this year's tax levy will be $2,231,742.This is an increase of$149,321, which is about a 7.2% increase.The goal of Lauterbach &Amen is to be fully funded by 2040.The law states that we must be 90%funded by 2040. It is reported that our numbers have been based on an expected investment return of 7%, but we have been paying out 7 %%. Mr. Foerster questioned if it would be wise to look into purchasing bonds to pay off the shortfall and only paying 3%vs the 7%. Mr. Cavanaugh stated that many pension boards are looking into this option, and that it is definitely a discussion worth having. Treasurer's Report A motion was made by Cheryl Kranz and seconded by Ann Buss to approve the Treasurer's Report.Vote: 3-ayes by unanimous voice vote. 0-nays,0-abstained., 2-absent. Motion carried. LPL Financial Equities Report Investment Advisor James Schmidt reviewed the Portfolio Performance Summary. Investments are up 14.6%. Capital Gains, Inc. Fixed Assets Report Investment Manager Gary Karshna reviewed the Fixed Assets Report. He explained that the 3 year bonds are down to 2%, but we have been fortunate enough this fiscal year to have a 4%bond rate. Political and economic issues were discussed as to how they are affecting the market. Europe may be purchasing American bonds, Hong Kong is causing issues, and a trade deal with China would help. Semi-Annual Review of Police Pension Fund Investment Policy The policy has recently been upgraded and everybody agreed that the policy looks fine.A motion was made by Cheryl Kranz and seconded by Ann Buss to leave the current Investment Policy as is. Vote: 3- ayes by unanimous voice vote. 0-nays,0-abstained., 2-absent. Motion carried. Motion to Approve a Request from Bryan Wegner for a refund of all pension fund contributions in the amount of$19,651.16. Mr. Foerster explained that an official letter has not yet been received,so this action will not take place until the next meeting. Motion to approve Office Sue Ellis Application Mr. Foerster stated that she was hired on September 23`d,and all of her paperwork has been submitted. A motion was made by Ann Buss and seconded by Cheryl Kranz to approve Officer Sue Ellis Application for Participation in the Police Pension Fund. Roll Call:Vote:Ayes:Ann Buss,Cheryl Kranz,Jeff Foerster. 0-nays,o-abstained. 2-absent. Motion carried. Approval of decision of Disability Pension for Sean Klechak A motion was made by Cheryl Kranz and seconded by Ann Buss to approve the decision of Disability Pension for Sean Klechak. Roll Call:Vote: Ayes:Ann Buss, Cheryl Kranz,Jeff Foerster.0-nays,o- abstained. 2-absent. Motion carried. Approve the transfer of creditable service for Dinka Malik to Arlington Heights Police Pension Fund A motion was made by Ann Buss and seconded by Cheryl Kranz to approve the transfer of creditable service for Dinka Malik to Arlington Heights Police Pension Fund. Roll Call:Vote:Ayes:Ann Buss,Cheryl Kranz,Jeff Foerster.0-nays, o-abstained. 2-absent. Motion carried. Pass a Resolution Regardinp,Consolidation of Pension Funds A motion was made by Cheryl Kranz and seconded by Ann Buss to pass a resolution regarding consolidation of pension funds. . Vote: 3-ayes by unanimous voice vote. 0-nays,0-abstained., 2-absent. Motion carried. Motion to approve the payment of bills A motion was made by Ann Buss and seconded by Cheryl Kranz to approve the payment of bills. Vote: 3-ayes by unanimous voice vote. 0-nays,0-abstained., 2-absent. Motion carried. Additional Items for Discussion Jeff Foerster began discussion of Pension Obligation Bonds. Mr. Foerster explained that there were a few issues with the Department of Insurance and the Police Pension Board. Many were small housekeeping items that were minor. There was also a discrepancy about converting Officer Porter, who is a retired officer. The Department of Insurance believes that we should not have converted Officer Porter, but our sources say that we did that appropriately. Motion to Adjourn A motion was made by Cheryl Kranz and seconded by Ann Buss to adjourn the meeting at 3:40 p.m. Vote: 3-ayes by unanimous voice vote. 0-nays,0-abstained., 2-absent. Motion carried. Monte Johnson, Recording Secretary Jeff oerste resident