Loading...
HomeMy WebLinkAbout2011 Police Pension ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE January 20, 2011 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Thursday January 27, 2011 at 1:30 p.m. The meeting will be held at the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin, Illinois in the North Lobby Community Room. Agenda: Call to Order: Minutes of the October 28, 2010. Treasurer's Report: a. 4th Quarter Executive Summary. b. End of year asset allocations 2010. c. 2011 Statute changes (Corporate Bonds and Increased Equity Exposure). d. Any changes in the Investment Guideline Policy due to new Statute? e. Bill Yocius of MVT presentation. Expenses: Deaths: (0) Retirements: (2) Keith Chrastka#123 retired on November 10, 2010 after serving 30 years of creditable service. James L Genz #124 retired on December 14, 2010 after serving 30 years, 1 month of creditable service. Terminations: (0) Resignations: (0) New Hires: (3) Adam J. Arnold #371; Raymond J. Oloris #372; Brett B. Essick #373 were hired on December 30, 2010 as a Probationary Police Officers. Disabilities: (1) Pete Almeida— Oral arguments as scheduled for February 1, 2011. Portability: (0) Refunds: (0) Miscellaneous: rik a. Yearly 3% increases for applicable pensioners. b. Henry Smith's QILDRO— The $50.00 fee check was returned by the bank as not valid. The attorney will be sending out another check per Lori Grocke. c. Scott Erickson's QILDRO- The $50.00 fee was paid. d. Investment Committee Meeting -- Agenda/Minutes December 22, 2010. e. Letter to retired members and affidavits sent out 99 out of the 110 returned. f. Weekly Vendor Checks started with Lauterbach and Amen. g. Clerk's pay. h. Update on 2010 DOI Audit. i. John Denofrio under payment from 1998 and other correspondences. j. Dr. Harris report on Tracy Kaminski disability. k. Should any Executive Sessions minutes be released? 1. Compliance with HB 5088, information to Ms. Lavery. m. Signed binder agreement with Ullico Labor Protection Group. n. Letter from Harris Bank reference Illinois Predatory Lending Certification. o. Statement of Economic Interest from Cook County Clerk's Office. p. Checks rec'd from Jennifer Ahrens for October and November 2010. q. Military buy back information. 1. How long to pay it off? 2. How to pay it off(lump sum, periodic payments from payroll) 3. Will Active Reserve time be credited? r. Miscellaneous correspondences. 1. IPPAC Spring Conference. 2. Attorney Sheri Willard. 3. IDOI reference Investment Policy. 4. IRS reference interest income. 5. Cary Collins reference 2011 disability exams. 6. Cary Collins reference pension fund computer bill. 7. Kayne Anderson Rudnick 3rd Quarter comments. 8. Letters/emails to Madison Investment Advisors about their last bill. Executive Session: Adjournment: Sincerely, Thomas J. Quigley Clerk r • The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, ll"6* January 27, 2011. Present at the meeting was President James Lamkin,Vice President Robert Christ, Asst. Secretary James Roscher, Attorney Cary Collins, Mike Piotrowski of Marquette Associates and Clerk Thomas Quigley. Absent: Trustee Robert O'Connor, Secretary Chris Troiola and Chief Financial Officer Colleen Lavery. Guests: Bill Yocius of MVT and Luke Meagher of Marquette Associates. The meeting was call to order at 1:42 p.m. by President Lamkin. Minutes of October 28, 2010 meeting were approved on a motion by Christ, seconded by Roscher. Motion approved. Expenses: The following expenses were approved as submitted on a motion by Roscher, seconded by Christ. Motion approved by roll call vote. Cary Collins Inv#5380 Admin services--Oct 2010 $800.00 5381 Scanning Files--Oct 2010 $636.00 5383 Scanning Files--Nov 2010 $330.00 5384 Admin services—Nov 2010 $800.00 5402 Retainer Jan--March 2011 $1,250.00 5442 Scanning files—Dec 2010 $734.00 r 5443 Almeida Appeal Cost $6,715.43 Dr. Richard Harris Annual Kaminski Exam $450.00 Kayne Anderson Rudnick Inv# 10151041 3rd Quarter Fee 2010 $11,000.00 Lauterbach &Amen Inv# 17846 Fees September 2010 $1,240.00 18435 Fees October 2010 $1,240.00 18862 Fees November 2010 $1,240.00 Madison Investment Fees 4th Quarter 2010 $1,154.44 Marquette Associates Inv#101217 Fees Dec 1, 2010- Feb 28, 2011 $7,500.00 Mesirow Insurance Inc#710694 Fiduciary incur 11/1/10--11/1/11 $9,179.00 Tom Quigley Wal-Mart&Postage reimburse $97.50 Tocqueville Fees 3rd Quarter 2010 $10,220.00 The Board approved the monthly pension check payouts as noted in meeting notes. Treasurer's Report: (1) Mike Piotrowski presented the Executive Summary December 31, 2010. The fund is performing well. The Fund is up 11.7% for the Year 2010. The Fund is performing outstanding considering the limits that the public pension funds have by the Illinois Pension Code. The Fund is the best performer among the similar accounts that Mike Piotrowski advises. Dimensional Fund Advisors is still on alert due to performance issues. A motion to accept Treasurers Report was made by Christ, seconded by Roscher. Motion approved. (2) There was a motion to approve all trades and transactions of monies since last meeting up to this meeting as reported. Motion made by Christ, seconded by Roscher. Motion approved by roll call vote. This is subject to approval by City Treasurer Lavery. (3) The end of the year rebalancing to comply with the Pension Code Statute was completed and approved at the December 22, 2010 Investment Committee meeting. (4) The Board discussed the new Statute allowing the Fund to invest in Corporate Bonds and increased equity exposure. The Managers will do this in the future with monies that they have. No quick or big transactions are expected but as the corporate bonds look good and in the correct circumstances,purchases will be made of the quality allowed by Law. A motion to amend the current Investment Policy Guidelines to show that the Policy can incorporate what the new Statute allows as of January 27, 2011. Motion made by Roscher, seconded by Christ. Motion approved. (5) Cary Collins office is putting together new Investment Policy Guidelines and will be in contact with Marquette Associates to prepare new guidelines due to the recent State Statute changes. (6) The transition of the money from Madison Investments to JP Morgan and Mitchell Vaught and Taylor went very smoothly. The fee costs also went down due to the amounts each manager now has is above another investment level. (7) There was one recommendation from Mike Piotrowski. A. The recommendation is to take$1,000,000.00 from cash and to put that money into Vanguard Mid-Cap Index. The motion was made by Christ, seconded by Roscher. Motion passed by roll call vote. (8) Bill Yocius spoke of how the Fund was performing under Mitchell, Vaught and Taylor. Also about the way MVT would purchase Corporate Bonds Deaths: (0) Retirements: (2) (1) Keith B. Chrastka#123 retired on November 10, 2010. He will receive a pension based on 30 years of creditable service(75%). His pensionable salary is $86,957.41. This includes base salary, 12 holidays and longevity pay. He will begin to receive his pension on November 11,2010. His monthly benefit for November 2010 will be prorated for 20 days in the amount of$3,623.23. His monthly benefit thereafter will be$5,434.84 and will increase yearly as prescribed by the Pension Code Statute. A motion was made by Roscher to pay this benefit, seconded by Christ. Motion approved pending approval of Colleen Lavery. Ms. Lavery signed off on this benefit. The pension payout figures were given to Lauterbach and Amen by the pension fund. For further information refer to the entire minute packet. (2) James A. Genz#124 retired on December 14,2010. He will receive a pension based on 30 years and 1 month of creditable service (75%). His pensionable salary is$90,357.23. This includes base salary, 12 holidays and longevity pay. He will begin receiving his pension on • December 15,2010. His monthly benefit for December 2010 will be prorated for 17 days in the amount of$3,096.89. His monthly benefit thereafter will be$5,647.33 and will increase yearly as prescribed by the Pension Code Statute. A motion was made by Roscher to pay this benefit, seconded by Christ. Motion approved pending approval of Colleen Lavery. Ms. Lavery signed off on this benefit. The pension payout figures were given to Lauterbach and Amen by the pension fund. For further information refer to the entire minute packet. Terminations: (0) Resignations: (0) New Hires: (3) Three pension membership applications were received and approved by the Board on separate motions by Christ, seconded by Roscher. Motion passed. Adam J. Arnold#371; Raymond J. Oloris#372 and Brett B. Essick were all hired as Probationary Police Officers on December 30,2010. Disabilities: (1) Pete Almeida-Oral arguments will take place on February 1, 2011. There is a new judge presiding over the hearing due to a retirement in the 16th Circuit Court. Judge Mueller will be hearing the arguments and making a ruling. Cary Collins will be present and will advise the Board of the decision. Portability of Creditable Service: (0) Transfer of Creditable Service from IMRF to Article 3 Fund: (0) Refunds: (0) Miscellaneous: a. A motion to approve the authorization of the yearly 3% increases to applicable pensioners was made by Roscher, seconded by Christ. Motion approved. b. The Board received a QILDRO from Gwendolyn Smith's attorney regarding Henry Smith's pension. The Board accepted the QILDRO pending the reimbursement of the $50.00 filing fee. A check was sent in January in the amount of$50.00 from Ms. Rice's office who is the attorney for Ms. Smith. The check was returned after the January 2011 payment was already made. Both Ms. Rice and Ms. Smith were notified of the problem with the fee. If the fee is not sent in to the Fund prior to the February payout, future payouts will be stopped until the fee is received. c. The Board received a QILDRO from Scott Erickson along with the$50.00 fee. The QILDRO was accepted. d. The Board reviewed the minutes of the Investment Committee meeting from December 22, 2010. e. A letter was sent out to the retired members, along with affidavits for 2011. As of this date 104 affidavits have been returned. President Lamkin wants Clerk Quigley to stay up to date with this and keep him posted. Follow-up letters will be sent out. f. The weekly vendor check program was started through Lauterbach and Amen. g. The Board reviewed the Clerk's pay. The Board is requesting further information. Cary Collins's office will submit a separate invoice for the amount due. h. The 2010 DOI Audit is now in Springfield with the field work completed by Mr. Wilkerson from DOI who was here in Elgin for approx 14 days in September. i. As with the under-payments of the last meeting which were discovered as the 2010 DOI Audit was being prepared for, one more retired Sgt. was found to be under-paid. John Denofrio was under-paid from his retirement in 1998. Christ made a motion to adjust the salary to the correct amount and to pay back pay as calculated by Lauterbach and Amen. This was seconded by Roscher. Motion approved. j. Tracy Kaminski disability was evaluated by Dr. Harris. Tracy Kaminski is still disabled. k. The Board has reviewed the Executive Minutes from previous meeting and has determined no Executive Minutes would be released. 1. The Fund complied with the requirements of HB 5088 by sending the appropriate documents to Ms. Lavery(CFO) of the City of Elgin. m. James Lamkin signed the binder agreement between the Fund and Ullico Labor Protection Group reference fiduciary insurance for Board members. n. Letter from Harris Bank advising that they do not have to comply with the Illinois Predatory Lending Law regarding certificates. They refuse to sign the certificate. Cary Collins has sent a letter to House Speaker Madigan about this situation. o. The Statement of Economic Interest from Cook County Clerk's Office was reviewed and taken care of per the City Clerk Diane Robertson and Attorney Cary Collins. p. The Board acknowledged receiving the pension payment checks from Jennifer Ahrens, who was out on Workers Comp.The checks cover October 2010($948.12) and November 2010 ($632.08). q. The issue of Military Buy Back was discussed and reviewed. The Board has decided on the following: A. Members taking advantage of this Military Buy Back(up to 2 years of service time) have up to (5) five years to buy it back but with the appropriate/applicable amount of interest and all payments must be completed prior to retiring. The payments can be made by a lump sum,periodic payroll deductions or other payments approved by the Board. B. The Board will wait until a member applies for the Military Buy Back with regards to Reserve Time. The Board will then send a request to the DOI for clarification as to whether any Reserve time can be transferred or just Active Reserve time. Once this is received from the DOI, the Board will make a final determination on this type of transfer that can be allowed. C. The DOI sent out guidelines in the Siren December 2010, stating that interest could be calculated up to the date on the written application and not the payment date since the DOI was trying to interpret the new Statute. The Board will abide by this request; however, the Board feels that the interest should start for those who have not paid as of December 1, 2010 to coincide with the publishing of the DOI interpretation in The Siren r. The Board reviewed the miscellaneous correspondences reference the following: IPPAC Spring Conference; a letter to Cary Collins from attorney Sherri Willard; a letter to DOI regarding the Funds Investment Policy Guidelines; IRS notice about interest income; letter referring to the 2011 disability exams; note from Cary Collins about the computer usage/bill; Kayne Anderson Rudnick 3rd Quarter comments and letters/emails to Madison Investments about their last bill. Executive Session: None With no further business the meeting was adjourned by President Lamkin at 3:02 p.m. on motion by Roscher, second by Christ. Motion approved. The next meeting will be held on April 28, 2011 (i 1:30 p.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sincerely, Thomas J. Quigley Clerk ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE March 22, 2011 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on April 7, 2011 at 3:00 p.m. The meeting will be held at City Treasurer's Office 150 Dexter Court Elgin, IL 60120 Agenda: Tele-conference with Marquette Associates. Discuss the Funds current financial status. Discuss/recommend any changes to the Funds allocations and re- balance if necessary. Approve the minutes of the following meetings: December 22, 2010 Set next meeting date. Sincerely, Thomas J. Quigley Clerk eft The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, August 8, 2011. Present at the meeting was President James Lamkin, Vice President Robert r Christ, Trustee Robert O'Connor, Asst. Secretary James Roscher, Chief Financial Officer Colleen Lavery, Attorney Cary Collins, Mike Piotrowski of Marquette Associates and Clerk Thomas Quigley. Absent: Secretary Chris Troiola. Guests: Bill Yocius of MVT and James Nowicki of MVT and Daniel Radmer. The meeting was call to order at 1:30 p.m. by President Lamkin. Minutes of April 28, 2011 meeting were approved on a motion by Christ, seconded by O'Connor. Motion approved. Expenses: The following expenses were approved as submitted on a motion by Roscher, seconded by Troiola. Motion approved by roll call vote. Kathleen Bono Inv# 5404 Martinez Court Reporter Fee $412.25 Cary Collins Inv# 5525 Admin services—April 2011 $800.00 5526 Scanning files—April 2011 $282.00 5530 Admin services—May 2011 $800.00 5529 Scanning files—May 2011 $150.00 5548 Retainer July- Sept 2011 11 $1,250.00 5589 Almeida Appellate Court Action $6,037.50 5590 Admin Services—June 2011 $800.00 5591 Scanning files—June 2011 $318.00 Center for Sports Ortho Martinez IME $700.00 Robert Christ Reimbursement for IPPAC Convention $454.38 Illinois Dept of Insurance F36720 FY 2012 Compliance Fee $8000.00 IPPAC 401 2011 Spring Conference Fee $225.00 452 Annual Dues July 2011 –June 2012 $500.00 JP Morgan 20110630-9174A April 1, 2011-June 1, 2011 $10,819.31 Kayne Anderson Rudnick Inv# 10151043 1st Quarter Fee 2011 $12,321.00 Lauterbach & Amen Inv# 20758 Year end auditors work prep $1,310.00 20841 Fees March 2011 $1,240.00 20979 Dept of Insurance Report Prep $1,850.00 21243 Fees April 2011 $1,240.00 21464 Fees May 2011 $1,240.00 Marquette Associates Inv#110616 Fees June 1, 2011-August 31, 2011 $7,500.00 Mitchell, Vaught &Taylor 2nd Qtr Fee $13,394.00 Corrected 2nd Qtr Fee $8,021.00 Adjusted Fee April 1 –April 14, 2011 $2,061.00 Credit applied to 3Qtr ref over-payment on previous 2nd Qtr Bill ($3,312.00) Tom Quigley Postage reimburse $27.68 Tocqueville Fees 1st Quarter 2011 $12,158.00 The Board approved the monthly pension check payouts as noted in meeting notes. Treasurer's Report: (1) Mike Piotrowski presented the 2nd Quarter 2011 Executive Summary. The Fund is performing very well through the 2nd Quarter. But looking at the present 3rd Quarter especially the 2 weeks prior to this current meeting, the markets have crashed. The Fund has lost all the gains for 2011. Marquette feels that this volatility will continue until the later part of 2011 when the market should turn around and stabilize and produce gains. The gridlock in Washington DC has scared the markets. The US debt is not under control and the European debt crisis is a problem. US Treasuries are still the best out there even with a down-grade by Standard and Poor's. Mitchell Vaught and Taylor and JP Morgan have not purchased any Corporate Bonds as of yet but may in the near future. They will follow the Investment Guidelines and Marquette will monitor these purchases and advise the Board appropriately. Dimensional Fund Advisors is still on alert due to performance issues. A motion to accept Treasurers Report was made by Roscher, seconded by Christ. Motion approved. (2) There was a motion to approve all trades and transactions of monies since last meeting up to this meeting as reported. Motion made by Roscher, seconded by Christ. Motion approved by roll call vote. This is subject to approval by City Treasurer Lavery. (3) Mike Piotrowski has made a recommendation to transfer$1,500,000.00 from cash to the following Funds. To take $500,000.00 and transfer it to Vanguard Institutional Index Fund. Motion was made by Roscher, seconded by Christ. Motion approved. The second recommendation was to take $1,000,000.00 and transfer that to Vanguard Mid-Cap Index. A motion was made by Roscher, and seconded by Christ. Motion approved. (4) Bill Yocius spoke of how the Fund was performing under Mitchell, Vaught and Taylor. The Fund is doing well and has been very good since the Market hit it's down turn in late July 2011. The risk has gone down in the Bond Market as the yield has gone up. MVT are looking to purchase Corporate Bonds in the future, since they are looking like a good buy. Deaths: (0) Retirements: (0) Disabilities: (1) Pete Almeida is in the process of appealing the 16th Circuit Court ruling to the Illinois Appellate Court and that decision could be within a few days. Resignations: (2) Michael W. Sullivan#296 resigned on May 3, 2011. Daniel J. Radmer#152 resigned on May 6, 2011. Refunds: (1) Daniel J. Radmer asked for a refund of his contributions in writing on June 1S, 2011. After a lengthy discussion between the Board and the attorney Cary Collins, which included Mr. Radmer's request and correspondences, review of the informal inquiry and response from the DOI, review of the Pension Code and the potential cost of future litigation by Mr. Radmer, a decision was made by the Board. The Board would issue a written Decision and Order approving the refund of Daniel Radmer contributions totaling $123,879.60 which will be back dated to the date of his request June 15, 2011. This motion was made by Christ, seconded by Roscher. A roll-call vote was taken Yea's (4) Lamkin, Christ, O'Connor and Roscher; Nay's (0) Zero; Abstentions (0) Zero. Motion approved. Terminations: (0) New Hires: (2) Two pension membership applications were received and approved by the Board on separate motions by Roscher, seconded by Christ. Motions passed. Steven M. Alcorn#378 and Benjamin Conway#379 were hired as Probationary Police Officers on July 5, 2011. These hire dates will put these two members under TIER 2 of the Article 3 Pension Code since there is no known proof that these new hires were in an existing Fund that would have made them into a TIER 1 members. Cary Collins office is finishing a booklet to have new hires sign stating that they are in the TIER 2 of Article 3 since they were hired after January 1, 2011. This will also have them acknowledge that they were not in any other Article 3 Fund or any other Fund that would allow them to be in TIER 1. Portability of Creditable Service: (2) Marie T. Glasby transferred 2 years and 1 day from Carpentersville Police Pension Fund. She paid her true costs plus interest totaling $6,215.48. Carpentersville transferred $28,806.52, which was her contributions and the Village of Carpentersville contributions and 6% interest on those monies. A total of$35,022.00 was received by the Elgin Police Pension Fund. A motion was made by Christ to approve the portability transfer of 2 yrs and 1 day for Marie T. Glasby, seconded by Roscher. Motion approved. Brett B. Essick has applied to have his time transferred from West Chicago Police Pension Fund (5 years, 10 months and 2 days). This was very time consuming working on this request. West Chicago Police Pension Fund had Lauterbach and Amen calculate their actuarial portion and then decided to transfer less then what the Law allowed. After multiple communications and hours of talking between Clerk Quigley, Tim Sharpe, Allison Barrett of Lauterbach and Amen and West Chicago Finance Director Mr. Warren the amount to be transferred will be the original amount required by Illinois Law $80,996.44. This amount was approved by West Chicago at its August 3, 2011 and the check should be in the possession of the Elgin Pension Fund by August 15, 2011. The final acceptance and approval of the transfer will take place at the next meeting for the Board. Military Buy Back: (1) James Raap paid the true costs to receive 19 months of creditable service per state statute for his active duty military service time. He paid a lump sum of$27,511.65. After this was approved at the last meeting it was learned that an error was made during the calculations. The hire date was not changed to reflect his portability time transfer from Schaumburg Police Pension Fund. Using the new date of hire (01-04-2005) after applying the portability showed that Officer Raap owed an additional amount of$2,307.52. Officer Raap is in the process of sending a check to the Fund. The Fund will act upon the addition money transfer at the next meeting. Miscellaneous: a. Mayor Kaptain re-appointment James Lamkin to the Board of Trustees. This term will be from May 1, 2011- May 1, 2013. b. The Board had a meeting with the Actuary Tim Sharpe. He gave his opinions of the 3 actuarial studies the City of Elgin had done to Fund the Police Pension. He said the actuarial study that was the best and that should continued to be used was the Entry Age Study. The other two studies do not come close to funding the Fund at a level that is needed. The Fund has no say in which way is used by the City of Elgin but it was expressed to CFO Colleen Lavery that over the last 10-15 years the funding of the Fund has decreased. The Fund would like to see the amount funded increased so that it can start in the direction of being fully funded. c. The IPPAC on-line training information was given to the Board. d. The Board was notified of the resignation of IPPAC Executive Director Thomas Bockmann. e. Board reviewed the minutes of the Investment Committee meeting from June 23, 2011. The Board had two Military buy back informational requests from Sgt. Thiel and Officer Sheehan. Sgt. Thiel has will be transferring 2 years of service time and has authorized a check rok that the Board should be receiving prior to the next Board meeting. The Board will take this up at the next Board meeting. g. The Board reviewed the 2010 Annual Report Certification Form which had been sent off to the DOI. h. The Board and Cary Collins reviewed the new Illinois Religious Protection and Civil Union Act(750 ILCS 75/1. i. CFO Lavery is looking into why 5/3 Bank is charging fees to the Fund. j. The Board was informed of an error in the calculations of Craig Mazzola's pension figures. The error came about when it was learned by Clerk Quigley that the holiday hourly pay rate that was given to the fund had the longevity pay already calculated into it, which increased the hourly rate for the holiday pay. A motion was made by Christ to re-calculate the pension with the correct figure and to pay that amount. This corrected amount will be $50,000.51. Motion seconded by O'Connor. Motion approved. k. A motion was made by Roscher not to release any Executive Meeting Minutes of the Fund. This motion was seconded by Christ. Motion approved. 1. Roscher made a motion to keep the Officers of the Board exactly the same as they are now. This was seconded by Christ. After closing the nomination process, Roscher's motion was approved. The Officers for the Board are as follows: President: James Lamkin Vice President: Robert Christ Secretary: Chris Troiola Asst. Secretary: James Roscher Trustee: Robert O'Connor m. The Board reviewed the miscellaneous correspondences in item m. of the agenda for this meeting. n. President Lamkin brought up to the Board his dissatisfaction with some of the things Lauterbach and Amen has done recently. He brought up the Essick portability, 2010 DOI Report where items were filled in by Lauterbach and Amen that were incorrect and not sent to them by the Fund or City. CFO Lavery had to have those changed. Also CFO Lavery has said that Lauterbach and Amen have had incorrect figures in their accounting records over the years and her staff has caught them and had to change them. President Lamkin asked the CFO Lavery write a letter letting Lauterbach and Amen know of these problems and that the Fund was not satisfied with these situations and the need to perform due diligence. Also brought up was the possibility of sending out Requests for Proposals from other accounting firms. Some firms that were mentioned were Doug Ellsworth, and Resnick. Executive Session: None With no further business the meeting was adjourned by President Lamkin at 2:50 p.m. on motion by Roscher, second by Christ. Motion approved. The next meeting will be held on October 27, 2011( 1:30 p.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sincerely, '1'°/4‘4,174 Thomas J. Quigley Clerk ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE September 6, 2011 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on September 8, 2011 at 3 p.m. The meeting will be held at City Treasurer's Office 150 Dexter Court Elgin, IL 60120 Agenda: Tele-conference with Marquette Associates. Discuss the Funds current financial status. Discuss/recommend any changes to the Funds allocations and re- balance if necessary. Approve the minutes of the following meetings: December 22, 2010 April 7, 2011 June 23, 2011 Set next meeting date. Sincerely, Thomas J. Quigley Clerk r The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, ellbk October 19, 2011. Present at the meeting was President James Lamkin, Vice President Robert Christ, Asst. Secretary James Roscher, Secretary Chris Troiola, Chief Financial Officer Colleen Lavery,Attorney Cary Collins, Mike Piotrowski of Marquette Associates and Clerk Thomas Quigley. Absent: Trustee Robert O'Connor. Guests: Bill Yocius of MVT and James Nowicki of MVT. The meeting was call to order at 1:36 p.m. by President Lamkin. Minutes of August 8,2011 meeting were approved on a motion by Christ, seconded by Troiola. Motion approved. Expenses: The following expenses were approved as submitted on a motion by Troiola, seconded by Christ. Motion approved by roll call vote. Buffalo Grove Orthopaedic Bahe Annual Exam $900.00 Copher Annual Exam $900.00 Santucci Annual Exam $900.00 Cary Collins Illy # 5593 Almeida Appellate Appeal Expenses $479.90 5596 Admin Services—July 2011 $282.00 5597 Scanning Files—July 2011 $177.00 5600 Admin Services—August 2011 $800.00 5618 Retainer October- December 2011 $1,250.00 5655 Scanning files Aug & Sept 2011 $216.00 5656 Admin Services—September 2011 $800.00 Center for Sports Ortho Quigley Annual Exam $700.00 Kayne Anderson Rudnick Inv# 10151044 2nd Quarter Fee 2011 $13,338.00 James Lamkin Reimbursement Ethics Training $1 29.00 Lauterbach&Amen Inv#21830 Fees June 2011 $1,240.00 22235 Fees July 2011 $1,240.00 22469 Fees August 2011 $1,240.00 Marquette Associates Inv#110918 Fees Sept. 1, 2011-Nov. 30, 2011 $7,500.00 Mitchell, Vaught&Taylor 3rd Qtr Fee $6,206.00 Torn Quigley Postage reimburse $8.80 Tocqueville Fees 2nd Quarter 2011 $11,908.00 The Board approved the monthly pension check payouts as noted in meeting notes. Treasurer's Report: (1) Mike Piotrowski presented the 3rd Quarter 2011 Executive Summary. The Fund was performing well until this last month and is now down about 8% for 2011. However if you look at the beginning of the 4th Quarter, the Fund is almost up 8%. It is unknown if the gains will last but for right now the Fund is pretty flat for the year and should be close to flat as the 4th quarter progresses. The gridlock in Washington DC still exists and the European debt crisis still hampers the markets. Dimensional Fund Advisors is still on alert due to performance issues. A motion to accept Treasurers Report was made by Roscher, seconded by Christ. Motion approved. (2) There was a motion to approve all trades and transactions of monies since last meeting up to this meeting as reported. Motion made by Roscher, seconded by Christ. Motion approved by roll call vote. This is subject to approval by City Treasurer Lavery. (3) Mike Piotrowski has made several recommendations to re-balance the Fund. To do so he recommends a transfer of 51,000,000.00 from cash to the following Funds: Vanguard Institutional Index Fund and Vanguard Mid-Cap Index. Motion was made by Roscher, seconded by Christ. Motion approved. The second recommendation was to take$900,000.00 from JP Morgan and transfer that to Vanguard Institutional Index Fund and Vanguard Mid-Cap Index. A motion was made by Roscher, and seconded by Christ. Motion approved. (4) Bill Yocius spoke of how the Fund was performing under Mitchell, Vaught and Taylor. The Fund is doing very well especially since the 10 year Treasury rate has dropped to record lows in the 3rd Quarter 2011. The rates have gone down in the Bond Market as the yield has gone up. MVT are looking to purchase Corporate Bonds in the future but only if they look attractive to purchase. Deaths: (0) Retirements: (1) John E. Demmin#134 retires on October 22, 2011. He was appointed January 23, 1984, giving him 27 years of creditable service time(67.5%). His pensionable salary is $104,641.58. The prorated amount for October 2011 for 9 days is 51,708.86. His first yearly benefit will be$70,633.08 or$5,886.09 a month. After this the yearly 3%increase will apply per The Illinois Pension Code. A motion was made by Christ to approve the pension benefits of Sgt. John Demmin, seconded by Roscher. Motion approved. Refunds: (2)The Board approved the written request of John M. Robinson in the amount of $2,479.45. He was with the Fund from April 2,2007—September 20, 2007. Roscher made the motion to approve the refund request, seconded by Troiola. Motion approved. The Board issued the written Decision and Order approving the refund of Daniel J. Radmer contributions totaling$123,879.60. This is the decision the Board reached at it August 8, 2011 meeting. The Decision and Order will be forwarded to Daniel Radmer and the Illinois Department of Insurance. Disabilities: (1) Pete Almeida is in the process of appealing the 16`x'Circuit Court ruling to the Illinois Appellate Court and that decision should occur in November 2011. Resignations: (0) Terminations: (0) New Hires: (0) Portability of Creditable Service: (1) Brett B. Essick applied to transfer the time from June 24, 2002---April 26, 2008 (5 years, 10 months and 2 days) from the West Chicago Police Pension Fund. West Chicago Police Pension Fund transferred$80,996.44 to the Elgin Police Pension Fund. This was the amount that was calculated by the actuary Tim Sharpe which represented Essick contributions, West Chicago's contributions and 6%upon the total of the two amounts. His new hire date for pension purposes will be February 25,2005. Christ made a motion to accept the money transfer and approve Essick's portability transfer of 5yrs, 10m, and 2 days, motion seconded by Troiola. Motion approved. Public Act 096-1260--Military Buy Back: (2)James Raap paid the true costs to receive 19 months of creditable service per state statute for his active duty military service time. He paid a lump sum of$27,511.65. After this was approved at the last meeting it was learned that an error was made during the calculations. The hire date was not changed to reflect his portability time transfer from Schaumburg Police Pension Fund. Using the new date of hire(01-04-2005) after applying the portability from Schaumburg Police Pension showed that Officer Raap owed an additional amount of$2,307.52. Officer Raap paid the $2,307.52. The Board acknowledges receipt of the check from Officer Raap and the 19 months of creditable service stands as it was voted on at the April 28,2011 meeting. Officer Raap's new hire date for pension purposes is June 4, 2003. Sgt. Donald W. Thiel applied to transfer 2 years of creditable service through the Military Buy Back Law. He paid $49,340.71 to the Fund, which was calculated by Lauterbach and Amen. His new hired date for pension purposes will be January 25, 1986. On a motion made by Christ, to accept the payment and approve the 2 year transfer of creditable military service time to the Fund as prescribed by Public Act 096-1260, seconded by Troiola. Motion approved. Miscellaneous: a. The Board approved the yearly(Nov 2011-Nov 2012)renewal of the Fiduciary Liability Insurance with Ullico and the payment of the premium on a motion by Troiola, seconded by Christ. Motion approved. b. Board reviewed the minutes of the Investment Committee meeting from September 8, 2011. c. The fees that 5/3 Bank have been charging the Fund have been stopped according to CFO Lavery. d. The annual disability exams have been completed on the following officers and all are still disabled; Ryan Bahe, Jill Santucci-Brady, Elizabeth Copher and Thomas Quigley. Tracy Kaminski was scheduled with Dr. Harris but cancelled the first appointment. He has been rescheduled. President Lamkin wants to make sure the Fund is not charged for the cancelled appointment. Cary Collins will take care of this matter. e. The 2012 Quarterly Meeting Dates for the Board were set as the following dates: January 18, 2012; April 18, 2012 July 18,2012 and October 17, 2012. The meetings will be on the third Wednesday of the appropriate month at 1:30pm. f. The Board reviewed the miscellaneous correspondences (item f.) it received from various fund managers and businesses. g, Attorney Cary Collins wanted to note that the Board received Sgt. James Lullo's QILDRO and Consent to Issue Order. There is not a Calculation Order except that the QILDRO stated 50% of the amount that applies when Sgt. Lullo was married to Bonnie Lullo. The divorce was finalized prior to the law requiring Calculation Orders in the form now issued. The Fund will calculate it at the time of Sgt. Lullo's retirement. Executive Session: None With no further business the meeting was adjourned by President Lamkin at 2:30 p.m. on motion by Roscher, second by Christ. Motion approved. The next meeting will be held on January 18, 2012 ( ,, 1:30 p.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sincerely, - `/ ! .f Thomas J. Quigley Clerk r r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE November 23, 2011 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on November 30, 2011 at 3 p.m. The meeting will be held at City Treasurer's Office 150 Dexter Court Elgin, IL 60120 Agenda: Tele-conference with Marquette Associates. Discuss the Funds current financial status. Discuss/recommend any changes to the Funds allocations and re- balance if necessary. Approve the minutes of the following meetings: September 8, 2011 Set next meeting date. Sincerely, Thomas J. Quigley Clerk r