2015. Present at the meeting was President James Lamkin, Vice President Robert Christ, Trustee Robert

Transcription

1 The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, July 15, Present at the meeting was President James Lamkin, Vice President Robert Christ, Trustee Robert O' Connor, Asst. Secretary James Roscher, CFO/ Treasurer Debra Nawrocki, Attorney Cary Collins, and Clerk Thomas Quigley. Absent: Secretary Chris Troiola Guests: Mike Piotrowski of Marquette Associates, Bill Yocius and Jim Nowicki of Mitchell Vaught and Taylor. Officer Dan Glasby. The meeting was call to order at 1: 30 p.m. by President Lamkin. Minutes of April 15, 2015 meeting were approved, motion made by Christ, seconded by O' Connor. Motion approved. Treasurer' s Report: I) Mike Piotrowski presented the nd Quarter Executive Summary. The Fund has performed well YTD. However the financial markets are still volatile. Year to date ( as of June 30, 2015) the Fund is up 2.6% ( Net of Fees). The Fund has an ending market value of $92,224, The Annualized performance of the Fund over 10 years is 6.7% (Net of Fees). The Fund is well diversified probably the best it has been, which will help no matter how the markets react. There are still problems with the economy which are slow job growth and wages are still pretty stagnate. Other unknowns are China, Greece and when will the Feds raise rates. Slightly over -weighted to Internationals, under- weight in Fixed. 2) Fixed Income is even overall YTD 0.8% ( Net of Fees). MVT was up 0.5% which is below its benchmark of 0.8%, while JP Morgan is up 1. 0%u which is higher than its benchmark o 0. 8%. Kayne Anderson 3) U. S. Equities as a whole were up 2. 1 % YTD, beating their benchmark of 1. 7%. Vanguard Instl. Rudnick YTD is up 2.8% ( Net of Fees) underperforming the benchmark of 4. 8%. Index Fund was even with their benchmark YTD with 1. 2% earnings. Vanguard Mid -Caps matched their benchmark of 3. 1 % YTD. 4) International Stocks Composite was up in the 2nd Quarter gaining 7. 0% beating their benchmark of 4.0% YTD. 5) Real Estate in the 2nd Q. U. S. Principle is up 6.2% YTD net of fees outperforming the benchmark of 3. 2%0. PIMCO is down % net of fees for the YTD underperforming the benchmark of 3. 8%n. PIMCO will still be left on Alert Status. 6) Mr. Yocius and Mr. Nowicki of MVT were at the meeting to discuss MVT performance. Mr. Yocius stated that MVT has the Fund is a less risk/ shorter duration formula. The duration has increased over the past 2 quarters slightly. They are trying to get back to the overall target rate of durations as the yields also increase. They have about 10-15% in high quality Corporate Bonds. Mr. Yocius believes that they are a good combination with J. P. Morgan especially when rates come back to the " proper level". Mike Piotrowski pointed out that MVT was still underperforming YTD and for many years net of fees. MVT needs to have significant positive performance or the Board may have to make a decision as to whether the business relationship continues. Mitchell, Vaught and Taylor will still be on Alert Status for performance. Page I

2 7) Mike Piotrowski had the Wells Fargo Authorized Signature form updated with the signatures of Nawrocki, Lamkin and Roscher. 8) A motion to accept Treasurers Report was made by Christ, seconded by O' Connor. This motion was approved by a roll call vote 4- yes and 0 -no. Expenses: The following expenses were approved as submitted on a motion by Christ, seconded by O' Connor. Motion approved by roll call vote 4- yes and 0 -no. Barrington Orthopedic Buffalo Grove Ortho Cary Collins IPPAC Illinois Illinois Dept. Dept. of of Insurance Insurance F76372 F76372 FY FY Compliance Compliance Fee Fee J. J. P. P. Morgan Morgan AA QQ Fees Fees AA 20151" 20151" QQ Fees Fees AA " 2" dd QQ Fees Fees Kayne Kayne Anderson Anderson Lauterbaeb Lauterbaeb & & Amen Amen Marquette Marquette Associates Associates IME -Dickman IME -Dickman Inv # 6585 Admin Services April Almeida Circuit and Appellate Courts 6591 Admin Services May Retainer July, August and Sept Admin Services June Almeida Appellate Court filings Inv # 1158 Annual Membership Fee July 2015 June 2016 Inv Inv # # Fees Fees 1 st st QQ Inv Inv # # Prep Prep for for Year Year End End paperwork paperwork FY FY Service Service Fees Fees - - March March Service Service Fees Fees - - April April Service Service Fees Fees - - May May Inv Inv Consulting Consulting Fees Fees June June 1, 1, Aug. Aug. 31, 31, Consulting Consulting Fees Fees June June 1, 1, Aug. Aug. 31, 31, Mitchell, Mitchell, Vaught Vaught & & Taylor Taylor Consulting Consulting Fee Fee 2nd 2nd QQ Consulting Consulting Fees Fees 3` 3` dd QQ Postage Postage Reimbursement Reimbursement Thomas Thomas Quigley Quigley , , 1, , 5, , , 1, , 1, , 2, , 8, , 9, I67. I , 11, , 22, , 1, , 8, , 2, , 7, , 6, S133. S There There was was aa motion motion to to approve approve all all trades trades and and transactions transactions of of monies monies since since last last meeting meeting up up to to this this meeting meeting as as reported. reported. Motion Motion made made by by Christ, Christ, seconded seconded by by O' O' Connor. Connor. Motion Motion approved approved by by roll roll call call vote vote yes yes and and 0-0- no. no. This This is is subject subject to to approval approval by by CFO CFO Nawrocki. Nawrocki. The The Board Board approved approved the the monthly monthly pension pension check check payouts payouts as as noted noted above. above. Deaths: Deaths: ( ( 1) 1) Patrolman Patrolman James James E. E. Willson Willson # # died died on on June June 24, 24, while while an an active active member member with with years years of of creditable creditable service. service. His His wife wife Alice Alice M. M. Willson Willson has has submitted submitted an an application application for for Widow Widow Pension Pension Benefit. Benefit. Patrolman Patrolman Willson' Willson' ss pensionable pensionable salary salary purposes purposes are are as as follows. follows. He He had had aa salary salary of of $ $ 89, 89, Per Per the the contract contract he he receives receives 3% longevity longevity of of his his salary, salary, which which is is $ $ 2, 2, He He gets gets paid paid holidays holidays in in the the amount amount of of $ $ 4, 4, The The total total pensionable pensionable salary salary is is $ $ 96, 96, He He will will receive receive % of of this this amount amount or or $ $ 64, 64, annually, annually, or or 5, 5, per per month. month. The The pension pension payment payment for for June June will will be be for for 77 days days in in the the amount amount of of $ $ 1, 1, Alice Alice M. M. Wilson Wilson will will not not receive receive yearly yearly COLA COLA raises raises as as prescribed prescribed by by the the Pension Pension Code. Code. Page Page 22

3 Retirements: ( 3) Sgt. Tamara A. Welter #190 retired on March 9, Sgt. Welter was hire on January 26, This includes the 2 years and 4 months of IMRF time she bought back. She will have 25 years of creditable service time for a pension of 62. 5% ofher pensionable salary. Sgt. Welters 2014 pensionable salary is as follows; base salary $ 106, , 4% longevity $4, and 10 paid holidays amounting to $3, The grand total of pensionable salary is $114, The annual pension benefit will be $71, or $5, per month. Her first benefit check will be in February 2020 in the prorated amount of $1, Her benefit checks starting in March 2020 will be in the amount of 5, Her annual COLA increases will take effect as prescribed by the Illinois Police Pension motion to accept Sgt. Welter' s pension benefit application and benefits was made by Christ, seconded by O' Connor. Motion approved by a roll call vote 4-yes 0-no. Sgt. Gary L. Neal Sr. # 164 retired on May 15, Sgt. Neal was hire on May 13, This includes the 18 months of Military Service he transferred to the Fund under Public Act He will have 27 years of creditable service time for a pension of 67. 5% of his pensionable salary. Sgt. Neal' s 2014 pensionable salary is as follows; base salary $ 106, , 4% longevity $4, and 10 paid holidays amounting to $3, The grand total of pensionable salary is $ 114, The annual pension benefit will be $77, or $6, per month. His first benefit check will be in May 2015 in the prorated amount of $3, His benefit checks starting in June 2015 will be in the amount of 6, His annual COLA increases will take effect as prescribed by the Illinois Police Pension motion to accept Sgt. Neal' s pension benefit application and benefits was made by Christ, seconded by O' Connor. Motion approved by a roll call vote 4- yes 0-no. Sgt. Philip A. Danner # 137 retired on June 1. 2, Sgt. Danner was hire on January 27, He will have 29 years of creditable service time for a pension of 72.5% of his pensionable salary. Sgt. Danner' s 2014 pensionable salary is as follows; base salary S 106, , 4% longevity $4, and 10 paid holidays amounting to $3, The grand total of pensionable salary is $ 114, The annual pension benefit will be $83, or $6, per month. His first benefit check will be in June 2015 in the prorated amount of $4, His benefit checks starting in July 2015 will be in the amount of 6, His annual COLA increases will take effect as prescribed by the Illinois Police Pension motion to accept Sgt. Danner' s pension benefit application and benefits was made by Christ, seconded by O' Connor. Motion approved by a roll call vote 4-yes 0- no. Disabilities: (2) Pete Almeida briefs have been filed with the Illinois Appellate Court and it will take 3-4 months for a decision. Officer Lawrence J. Dickman # 317 has made application for a duty/non- duty disability. The Fund has set up the necessary doctor' s evaluation exams and are compiling the reports and waiting for the reports from the City of Elgin. Terminations: ( 0) Resignations: ( 0) Refunds: ( 0) Page 3

4 New Hires: ( 2) Teodolo Ravadan #415 TIER 11 was hired on June 29, 2015 as a Probationary Police Officer, Steven T. DePauw #416 TIER II was hired on June 29, 2015 as a Probationary Police Officer. Christ made separate motions to accept Parker and Lara into the Fund; both motions were seconded by O' Connor. Both motions approved. Portability of Creditable Service: ( 1) Officer Jessica L. Duehning #410 started the Portability process to transfer 6 years, I I months and 27 days ( January 2, 2008 December 29, 2014 from City of DeKalb Police Pension Fund. DeKalb issued the Fund a check in the amount of $120, 889, 70. Officer Duehning has a true cost of $25, that she owes to the Elgin Police Pension Fund and has decided to take 4 years to pay that amount off. The true cost was calculated by Timothy Sharpe (Actuary). No action will be taken until Officer Duehning has paid the true cost amount to the Fund. Military Service Buy Back 40ILCS5l3-110( b-5) ( 1) Officer Conan D. Fender #243 applied to transfer 2 years of Military Service. Lauterbach calculated that his total cost would be $20, He paid that amount in full to the Fund. His new start date for pension purposes only will be March 11, Three motions were made to ( 1) accept the payment in full, (2) New start date for Officer Fender would be changed to reflect the transfer of the 2 years, with the new date being March 11, ( 3) The new start date is for pension purposes only. All three motions were made by Christ, seconded by O' Connor. All motions were approved. Miscellaneous: a. James Lamkin was re -appointed by Mayor Kaptain to a two year term May 1, May 1, b. The DOI Annual Report was completed, as was the Certificate Form signed and sent. c. House Bill 5088 Report was completed and sent to the City. d. The Board reviewed a revised Letter of Acceptance with Lauterbach and Amen covering June 17, 2015 December It will lower the monthly cost of the monthly report by $ a month. Christ made a motion to accept the agreement, seconded by O' Connor. Motion approved. e. The Board reviewed a QILDRO that it received from Officer James Phillos and his ex- wife Donna Phillos. The Order 2014 D 224 was signed by Judge Cleveland- Bemstein out of Cook County Circuit Court on May 15, The Board received a check in the amount of $ Lamkin had asked Cary Collins what is the amount the Fund is actually to pay? The QILDRO says 50%, but 50% of what amount? How does the Fund know what is the accepted amount since there are so many different formulas to calculate the amount to be paid. Cary Collins said he was making a form to acknowledge the QILDRO and to say what amount the Fund will pay and it will be up to the attorney' s to let the Board know within 35 days if it is an incorrect amount. L The Board reviewed the Investment Committee Agenda and Minutes for the June 1, 2015 meeting. g. The Board reviewed the IPPAC Seminars for 2015 and the Newsletter. h. The Board reviewed the FOIA request it received on April 28, 2015 and the information that was sent out. i. The Board reviewed the Executive Session Minutes to determine if any should be released. No Executive Session Minutes will be released at this time. Page 4

5 j. The Board of Trustees opened nominations for Election of Officers. Roscher made a motion to keep the current Board of Trustee members in their current Officer positions, seconded by O' Connor, Motion approved. The following Trustees will fill these Officers positions. President James Lamkin, Vice President Robert Christ, Trustee Robert O' Connor, Asst. Secretary James Roscher, Secretary Christopher Troiola. k. The Board went over who would need an IPad. 5 IPads will be ordered through the City of Elgin. On a motion by Christ to purchase up to $4, in electronics ( IPads) through the City of Elgin and reimburse the City for the purchases. Seconded by O' Connor. Motion approved by a roll -call vote 4 -yea and 0 -no. 1. The Board also went over what to do with the current 6 year old laptop computers. After a discussion the Board came up with sending each Board Member an stating that if they wanted to keep the laptop, they would need to send the Fund $ to purchase them. Motion made by Christ to charge $ to each Board member who wanted to keep the laptop. The laptops that are broken or not paid for shall be destroyed. Seconded by O' Connor. Motion approved. m. Cary Collins went over a change to the Illinois Police Pension Code section It states that over payments can be collected up to 3 years from when they occur from members who receive those overpayments. Any overpayments over 3 years can be corrected to the correct amount but the overpayment( s) cannot be collected from the member. n. The Board reviewed the records provided by Lauterbach and Amen and Kayne Anderson Rudnick. Public Comments: N/ A Executive Session: The Board went into Executive Session at 2: 24p.m. to discuss Lawrence Dickman' s pending medical disability application and medical reports on a motion by Christ, seconded by O' Connor. Motion approved. The Board came out of Executive session at 2: 45pen. on motion by Christ, seconded by O' Connor. Motion approved. No Formal action was taken during the Executive Session. With no further business the meeting was adjourned by President Lamkin at 2: 46 p.m. on motion by Christ, second by Rosclxcr. Motion approved. The next meeting will be held on October Cu. 1: 30y.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL Sincerel Thomas J. Quigley, Clerk y/ Board Member Approval:'`'' Signature Title r` C7 ' t,. Z s Page 5