HomeMy WebLinkAbout2013 Police Pension Fund Minutes & Agendas ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
MEETING NOTICE
January 10, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday,January 16, 2013 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 17, 2012.
Treasurer's Report:
a. 4th Quarter 2012 Executive Summary.
b. Bill Yocius of MVT presentation.
Expenses:
Deaths: (0)
Retirements: (1) Clenest Gant was approved at the October 2012 meeting for a 23 year
creditable service pension. The computations were completed.
Disabilities: (1) Gregory A. Schneider #241 filed for a non duty or duty disability November 7,
2012.
Refunds: (1) Matthew L. Carr asked for a refund of contributions in the amount of$3,593.08.
Terminations: (1) Lance Adams #299 was terminated on November 5, 2012.
New Hires: (0)
Portability: (1) James S. Olsen #385 applied for a portability transfer from Geneva Police
Pension Fund. Transferring 12 yrs, 1 m and 20 days. Geneva transferring $227,412.56.
Miscellaneous:
a. Yearly 3% Cost of Living Adjustments (COLA) for applicable retired members.
b. Retro pay for 2012 supervisory retirees (Beeter, Joanne Demmin, Jose Morales, T
Olson, O'Herron, Linder).
c. DOI Actuarial Tax Levy Report.
d. City of Elgin Actuarial Report prepared by Timothy Sharpe.
e. DOI The Siren Bulletin Annual Salary Max for Pensions & COLA for New Hires on
or after January 1, 2011.
f. Investment Committee Meeting -- Minutes & Agenda for November 27, 2012.
g. Annual Disability Exams—Bahe, Kaminski, Santucci-Brady, Almeida.
h. IRS update-Correspondences back and forth.
i. Legal Cases update provided by Cary Collins Office.
j. Letter from Marquette Associates regarding their merger with Fiduciary Consultants.
k. Emails from Lauterbach & Amen about new BMO Harris account for the Fund.
1. IPPAC notice about membership number for the Board to use for Training Classes.
m. Affidavits and year-end letter to the members.
n. 2013 Quarterly Meeting Dates.
o. Miscellaneous correspondences.
1. Lauterbach and Amen monthly reports.
2. Kayne Anderson quarterly reports.
3. Marquette Global Equity Position Paper.
4. Tocqueville Asset Management monthly reports.
Executive Session:
a. Executive Session Minutes of the October 17, 2012 meeting.
b. Review Executive Session Minutes (release or not to release).
Adjournment:
Sincerely,
Thomas J. Quigley
Clerk
The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, January 16,
2013. Present at the meeting was President James Lamkin,Vice President Robert Christ, Secretary
Chris Troiola, Asst. Secretary James Roscher, Chief Financial Officer Colleen Lavery,Attorney Cary
Collins, and Clerk Thomas Quigley.
Absent: Trustee Robert O'Connor
Guests: Mike Piotrowski and Torn Salemy of Marquette Associates and James Nowicki of MVT.
The meeting was call to order at 1:35 p.m. by President L,amkin.
Minutes of October 17, 2012 meeting were approved on a motion by Christ, seconded by
Roscher. Motion approved.
Treasurer's Report:
(1) Mike Piotrowski presented the 4th Quarter 2012 Executive Summary. The Fund has performed
well for the year 2012. As of December 31, 2012 the Fund is up 9.6% (Gross of Fees) and 9.3%
(Net of Fees). The Fund has an ending market value of$64,524,019.61. This is an increase of
$4.85 million for 2012. The 4`1'Quarter was very good for the markets. The Annualized
performance of the Fund over 10 years is 6.9% (Net of Fees).
The Equity exposure is good, and Corporate Bonds are having a positive impact on the Fund. JP
Morgan Chase is at the max of 10%, while MVT is around 5.5%. As the time goes on the ability
for the Fund to make money will get harder since fixed income is getting squeezed by the
artificially low interest rates. There is a 10% area that the Fund can invest in as 2013 comes in.
This means moving some assets to an increased investment risk portfolio. Mike will present the
Board with ideas later in the meeting.
(2) The Fund Managers are performing well. Dimensional Fund Advisors Int'l SCV is still on alert
due to performance issues but has improved over the past year, especially the 4th Quarter.
Tocqueville Asset Management is also on alert due to under performance over the past year and
will be monitored. Tocqueville has improved in the 4th Quarter but will need to be monitored to
see if this continues.
(3) Mike Piotrowski Presented the Board with 2 options to give the Fund more opportunity to expand
its diversity and market value. The information is presented in the Executive Summary in exhibit
H. He spoke of two investment types, one being PIMCO All Asset Fund, This is a mutual fund
that has global assets classifications which can shift investment capital throughout the world
markets as situations change in the global market area. There is no contract and has daily liquidity,
can get in and out fast. The Fund is actively managed. This information is on pages 16 —20.
Mike believes that PIMCO will help the Fund increase its value with time since the Fixed Income
Sector is not able to make a lot of gains, due to the interest rates continuing to be so low and it
appears that they will be kept artificially low for next few years from what the Federal Reserve has
put out as their outlook. He would like to put 5% of the Fund's value into P1MCO, which is
$3,225,000.00.
(4) The second option is to invest in Principle US Property Separate Account. This is a Commercial
Real Estate Fund that is not a REIT. This in on pages 9— 15 of the Executive Summary. It is
offered through a group annuity contract of the Principle Life insurance Company. Since there is a
contract with this investment, it would not be as liquid as PIMCO would he. The Fund is also
actively managed. Mike is also advising that the Board transfer 5% of the total Fund value to this
investment which is $3,225,000.00.
After a discussion and answer period a motion was made by Christ to authorize the investment of the
Fund's monies into PIMCO and Principle US Property Separate Account by taking $3,225,000.00 from
JP Morgan and Mitchell, Vaught &Taylor for a total of$6,500,000.00 and transferring equal amount to
PIMCO and Principle US Property Separate Account. This was seconded by Roscher. Motion approved
by roll call vote 4 yeas– 0 no.
(5) Jim Nowicki spoke of how the Fund was performing under Mitchell, Vaught and Taylor. The
Fund is doing well. It is still a very difficult environment to make money due to the economic
pressure in the fixed income sector. But he says MVT is still making a profitable return for the
'Fund. They are keeping short maturity times on the bonds they purchase to be able to provide the
best returns possible in this climate. MVT is about 5.5% invested in Corporate Bonds. If the
circumstances present themselves to increase the Corporate Bond holdings then they will do so up
to the 10% level.
A motion to accept Treasurers Report was made by Christ, seconded by Troiola. Motion approved.
Expenses: The following expenses were approved as submitted on a motion by Christ, seconded by
Troiola. Motion approved by roll call vote 4 yeas– 0 no.
Buffalo Grove Orthopaedic Assoc Bahe Annual Exam $1,000.00
Santucci-Brady Annual Exam $950.00
The Center for Sports Ortho Quigley Annual Exam $700.00
Cary Collins Inv## 5934 Admin Services—October 2012 $1,260.00
5936 Scanning Services—October 2012 $237.00
5941 Admin Services—November 2012 $1,260.00
5892 Retainer January- March 2013 $1,250.00
5995 Admin Services------December 2012 $1,260.00
Dr. Richard Harris Kaminski Annual Exam $455.00
JP Morgan 20120930-9174-A 3rd Qtr Fee 2012 S9,677.45
Kayne Anderson Rudnick Inv # 10151049 3rd Quarter Fee 2012 $13,689.00
Lauterbach &Amen Inv # 29028 Fees September 2012 $1,275.00
29481 Fees October 2012 $1,275.00
29916 Fees November 2012 $1,275.00
Marquette Associates Inv # 121217 Fees Dec 1, 2012-- Feb 28, 2013 $8,750.00
120918 Fees Fiduciary Services Dec 1, 2012- Feb 28, 2013 $2,500.00
Mesirow Financial Inv# 788355 Renew Fiduciary Liability Ins Nov 2012-Nov2013 $9,049.00
Mitchell, Vaught&Taylor 4th Q 2012 Fee $8,790.00
Toni Quigley Postage reimburse $76.20
Tocqueville Fees 3rd Quarter 2012 $10,480.00
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 Troiola. Motion approved by roll call vote 4 yes--0
TIO. This is subject to approval by City Treasurer Lavery
The Board approved the monthly pension check payouts as noted in meeting notes.
Deaths: (0)
Page 2
Retirements: (1) Officer C J Gant#158 Pension Calculations have been completed by Lauterbach and
Amen for 23 years of creditable years of service, which was discussed and approved at the October 17,
2012 meeting. His calculations are as follows: His prorated benefit will begin on March 11, 2015 in the
amount of$2,877.59. In April 2015 full pension will be given in the amount of$4,247.87 monthly
which is $50,974.44 annually. His annual COLA increases will occur as prescribed by the Illinois
Pension Code beginning on April 1, 2020.
Disabilities: (1) Officer Gregory A. Schneider#241 has applied for a duty or non-duty pension on
October 30, 2012. Cary Collins's office is working to gather the necessary preliminary paperwork
before doctor appointments arc made.
Resignations: (0)
Terminations: (1) Lance Adams#299 was terminated on November 5, 2012; he is leaving his
contributions in the Fund until his appeal of the termination is completed.
Refunds: (1) Matthew L. Carr asked in writing for the refund of his contributions in the amount of
$3,593.08. A motion was made by Christ to return the full amount of his contributions, seconded by
Troiola. Motion approved.
New Hires: (0)
Portability of Creditable Service: (1) James S. Olsen #385Andrew applied for Portability from Geneva
Police Pension Fund. He served a total of 12 years, 1 month and 20 days (June 20, 1996—August 8,
2008) in Geneva. The Geneva Police Pension Fund transferred $227,412.56 which included Olsen's
contributions and Geneva contributions and 6% interest on the total contributions. The Actuary for the
Elgin Police Pension Fund calculated the true cost of Olsen's Portability which was zero. Christ made a
motion to accept the Portability transfer of 12 years 1 month and 20 days which was seconded by
Troiola. Motion approved by roll call vote 4 yeas —0 no.
Public Act 096-1260--Military Buy Back: (0)
Miscellaneous:
a. The Board reviewed the yearly 3% COLA increases for applicable retired members. Motion by
Christ to approve the increases, seconded by Troiola. Motion Approved.
b. The Board reviewed the retro pay for all the supervisors who retired in 2012 due to the City 2012
pay raises for supervisors that the City approved on October 24, 2012. Those supervisors receiving
an increase in pension benefits are a follows:
Robert Beeter will receive a retro amount of$1,003.62. IEs pension will increase from
$67,687.33 to $69,041.04 yearly.
Joanne Demmin will receive a retro amount of$673.04. Her pension will increase from $75,864.96
to $77,382.36 yearly.
William Linder will receive a retro amount of$1,031.06. His pension will increase from $70,633.07
to$72,045.72 yearly.
Jose Morales will receive a retro amount of$759.49. Flis pension will increase from 62,784.96
to $64,040.64 yearly.
Thomas Olson will receive a retro amount of$261.60. His pension will increase from
$78,481.20 to $80,050.80 yearly.
Thomas O'Herron will receive a retro amount of$687.71. His pension will increase from
$83,641.92 to $85,314.72 yearly.
Page 3
c. The Board reviewed the DOI Actuarial Tax Levy Report.
d. The Board reviewed the City of Elgin's Actuarial Tax Levy Report prepared by Timothy Sharpe.
The rate of return was 7.75%with the amount to he levied $3,887,805.00. The Tax Levy will be in
the form of property taxes and personal tax. The Board accepted the City's decision to use its own
Actuarial Tax Levy.
e. The Board reviewed the information from DOI in the Siren Bulletin regarding Annual Salary
Maximum for Pensions and COLA for new hires on or after January 1, 2011.
f. The Board review the minutes of the Investment Committee's meeting on November 27, 2012.
g. Annual Exams were performed on the Disability Pensioners. Bahe, Kaminski and Santucci-Brady
arc all still disabled. Almeida is still being evaluated.
h. The Board reviewed the correspondences from the IRS and it is still waiting for their final review as
to the problem the IRS has had with the W-2's from 2010. The Fund does not issue W-2's.
i. The Board reviewed the updated legal decision from Cary Collins's office.
j. The Board heard from Mike Piotrowski about the merger Marquette acquired with Fiduciary
Consultants.
k. The Board reviewed the material from Lauterbaeh about the new BMO Harris accounts.
1. The Board received the information about the account number that has been given to the Board to
sign up for classes with IPPAC.
m. The yearly affidavits went out via emails and USPS. About 19 have not been returned to date.
Clerk Quigley will send a letter via USPS out again and then in early February 2013 will send a final
certified letter advising those who have not responded to the first two notifications that their pension
benefits will be suspended until the affidavits have been returned per the Boards direction.
n. The Board reviewed the 2013 meeting dates and the information in misc. o.
o. The Board did not go into Executive Session but did approve the October 17, 2012 Executive
Meeting by a motion by Christ, seconded by Troiola. Motion approved.
p. The Board spoke briefly about the release of the old Executive Meeting Minutes and will not release
any at this time. Cary Collins will review the old meeting minutes and advise if he believes any
should be released. •
Executive Session: N/A.
With no further business the meeting was adjourned by President Larnkin at 2:32 p.m. on motion by
Christ, second by Troiola. Motion approved.
The next meeting will be held on April 17, 2013 a, 1:30 p.m. The meeting location will he
The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120.
Sincerely,
Thomas J. Quigley
Clerk
Board Member Approval: "
Signature Title
Page.4
r
ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
INVESTMENT COMMITTEE MEETING NOTICE
February 25, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees announces
that an Investment Committee will be holding a meeting on February
28, 2013 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 meeting:
, November 28, 2012.
Set next meeting date.
Since •1 ,
!PI i�
Tho as J. ui le
Q g Y
Clerk
r
Elgin Police Pension Fund
151 Douglas Avenue
Elgin, IL 60120
Minutes of the Elgin Police Pension Fund, Investment Committee meeting,held on February 28,
2013. Present at the meeting(tele-conference) were Vice President Robert Christ,Clerk Thomas
Quigley and Mike Piotrowski of Marquette Associates.
Absent: Chief Financial Officer Colleen Lavery
Guests: None.
The meeting was call to order at 3:00 p.m. by Vice President Christ.
Treasurers Report: Mike Piotrowski went over the January 31,2013 Flash Report. A copy of
this report is attached to the minutes.
The Fund is still doing very well for the beginning of 2013. The Fund is up approximately 2.9%
for the first month of 2013 with assets at$65,999,205.00, an increase of$1.5 million. The Bond
Market was down .4%; International Funds were up 4%; Emerging Markets were up 1.4% and
US Equities were up 6%. The Fund was over-weighted in US Equities which helped to increase
the bottom line. This is the best January start since January 1997. This is a continuance from the
end of last year up 5.5% for a 3 month period (Nov, Dec 2012 and Jan 2013).
JP Morgan is still performing better then Mitchell,Vaught and Taylor(MVT). This is due to JP
Morgan having more exposure to Corporate Bonds. The difference is about .3% for January
2013,however over a 1 year period JP Morgan is up .7%between the two firms.
In Domestic Small-Caps, Tocqueville has had a nice rebound up 18%in 3 months. Tocqueville
will still be on alert and monitored.
Vanguard Mid-Caps are covering the cash needs of the Fund. They are in line with their
benchmark.
Dodge& Cox and Euro-Pacific on the International side are doing well. It appears to be a good
combination with Dodge and Cox on the value side and Euro-Pacific on the growth side. DFA
has turned it around over the past 3 months up 2.5% over their benchmark. However,DFA will
still be on alert and be monitored.
As for the new investments into PIMCO and Principle US Property; PIMCO started on January
30,2013 with$3,225,000.00 and was down slightly for 1 day. Principle US Property started on
February 15,2013. To date(Feb 28,2013)Principle US is up .4%plus an additional increase of
1-2%in appreciation. The Fund initial investment amount was $3,225,000.00. Mike feels that
these investments will make a difference in the Fund as time goes on since the Bond Market
looks like it could be sluggish for a few years.
Mike congratulated the Board on being more proactive then most Funds, since many have not
heard of or even thought about alternative investments (PIMCO&Principle US Property). The
Fund is getting in early which should be a nice benefit as other Funds begin to invest in these
types of opportunities.
Marquette will update the Investment Policy Guidelines for the next meeting on April 17,2013.
The next meeting date for the Committee will be set after the regular quarterly meeting(unless a
Special Meeting is needed and called by President Lamkin or V/P Christ).
With no further business to discuss,the meeting was adjourned by Vice President Christ at
3:19pm.
Sincer i /
i
Thomas J. Quigley
Clerk
Board Member Approval: L r--vi i f 3 ` ( �j ( 3
Signature Date
ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
MEETING NOTICE
April 10, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday, April 17, 2013 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 January 16, 2013.
"' Treasurer's Report:
a. 1st Quarter 2013 Executive Summary.
b. Review updated Investment Policy Guidelines.
c. Bill Yocius of MVT presentation.
Expenses:
Deaths: (0)
Retirements: (1) Deputy Chief Cecil Smith #149 retired on March 15, 2013.
Disabilities: (1) Gregory A. Schneider #241 filed for a non duty or duty disability
November 7, 2012 and is in the process of being examined by the Fund's physicians.
Refunds: (0).
Terminations: (0)
New Hires: (3) Three Probationary Police Officers were hired by the City on January 3,
2013, Kevin Kamenjarin #390; Matthew Jacobucci #391; Colleen Formanek #392.
Portability: (0)
'' Military Buy Back: (1)D/C Cecil Smith #149 transferred 2 years of military service at a
cost of$52,821.73.
Miscellaneous:
a. Executive Session minutes and recordings (keep or release).
b. Dr. Gruenberg's agreement for services reference Greg Schneider's Examination.
c. Dr. Obolsky's report of Almeida.
d. Trustee election of active member(Roscher's position).
e. Trustee election of retired member (Christ Position).
f. Trustee election of Mayor Kaptain's appointment (Lamkin's position).
g. Letters from Cary Collins and IPPAC about upcoming training dates and Spring
Seminar.
h. Investment Committee Meeting -- Minutes & Agenda for February 28, 2013.
i. BMO Harris account; emails from Lauterbach & Amen about old account and signed
authorization for finance to have online access.
j. Signed authorization to transfer money from JP Morgan to PIMCO.
k. Final notice sent to members regarding affidavits that had not been returned.
1. 2012 Audits - both the Annual DOI and City processes have begun.
m.2012 Internal Revenue Service tax forms have been filed by Lauterbach and Amen.
n. Miscellaneous correspondences.
""'' 1. Lauterbach and Amen monthly reports.
2. Kayne Anderson quarterly reports.
3. Mitchell, Vaught and Taylor updates.
4. Tocqueville Asset Management monthly reports.
Executive Session:
Adjournment:
Sincerely,
),(,.._
Thoma J. Quigley
Clerk
r
•
The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund,Board of Trustees,April 17,
2013. Present at the meeting was President James Lamkin,Vice President Robert Christ, Trustee Robert
O'Connor, Asst. Secretary James Roscher, Secretary Chris Troiola, Chief Financial Officer Colleen
Lavery, Attorney Cary Collins, and Clerk Thomas Quigley.
Absent: N/A
Guests: Mike Piotrowski of Marquette Associates and David Vaught,Bill Yocius and James Nowicki of
Mitchell Vaught and Taylor.
The meeting was call to order at 1:35 p.m.by President Lamkin.
Minutes of January 16, 2013 meeting were approved on a motion by Christ, seconded by Roscher.
Motion approved.
Treasurer's Report:
(1) Mike Piotrowski presented the 1st Quarter 2013 Executive Summary. The Fund has performed
very well for the first quarter of 2013. As of March 31,2013 the Fund is up 5.3% (Gross of Fees)
and 5.2%(Net of Fees). The Fund has an ending market value of$67,860,187.00. This is an
increase of$3,336,857.46 for 2013. The Annualized performance of the Fund over 10 years is
7.6% (Net of Fees).
(2) The Equity exposure is good, and Corporate Bonds are having a positive impact on the Fund. JP
Morgan Chase is at the max of 10%Corporate Bonds,while MVT has now also reached the
maximum of 10%in Corporate Bonds. Mike reiterated that as time goes on, the ability for the
Fund to make money will get harder since fixed income is getting squeezed by the artificially low
interest rates. Mike stated both JP Morgan and MVT would like the percentage allowed to go into
Corporate Bonds to be increased by the Board. President Lamkin asked for Marquette to put
together a presentation for the next meeting looking at increasing the percentage allowed by both
firms. Small Caps out performed Large Caps.
(3) The Fund Managers are performing well. Dimensional Fund Advisors Intl SCV is still on alert
due to performance issues. They were below the benchmark for the quarter. Tocqueville Asset
Management is also on alert due to under performance and was also returning below their
benchmark. Over 10 year period, Tocqueville has outperformed the benchmark. Both Funds will
be monitored by Marquette.
(4) PIMCO has not had a full quarter to perform in and is about at the level that the Fund bought in at.
It has a lot of International exposure. Moving forward PIMCO should help the Fund accrue gains
in which are hard to find in Fixed Income. Principle US Property was up 1.6% for the partial
quarter. This should also be a benefit to the Fund as time goes on.
(5) Mr. Nowicki spoke of how MVT was performing. The Fund is"making money" even in this very
difficult environment all be it slight. The Fund had a drag on it due to cash being in the portfolio
from a recent sizable bond maturing. That money has since been put back to work for the Fund.
They remain short in duration and think interest rates will be on the rise.
A motion to accept Treasurers Report was made by Christ,seconded by Roscher. Motion approved.
Expenses: The following expenses were approved as submitted on a motion by Roscher, seconded by
Troiola. Motion approved by roll call vote 5 yeas—0 no.
r
Cary Collins Inv#6003 Admin Services—January 2013 $1,260.00
6006 Admin Services—February 2013 $1,260.00
6020 Retainer April–June 2013 $1,250.00
6060 Admin Services—March 2013 $1,260.00
JP Morgan 20121231-9174-A 4th Qtr Fee 2012 $10,097.49
Kayne Anderson Rudnick Inv# 10151050 4th Quarter Fee 2012 $12,131.00
Lauterbach &Amen Inv#221 Fees December 2012 $1,275.00
461 Fees January 2013 $1,315.00
681 Prep for 1099's FY 2012 $675.00
878 Fees February 2013 $1,315.00
Marquette Associates Inv# 130319 Fees Mar 1,2013–May 31, 2013 $8,750.00
130320 Fiduciary Services Mar 1, 2013–May 31,2013 $2,500.00
Mitchell,Vaught &Taylor 1st Q 2013 Fee $8,820.00
Tom Quigley Postage reimburse $103.21
Tocqueville Fees 3rd Quarter 2012 $11,092.00
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 5 yes–0
no. This is subject to approval by City Treasurer Lavery
The Board approved the monthly pension check payouts as noted in meeting notes.
Deaths: (0)
Retirements: (1) Deputy Chief Cecil Smith#149 retired on March 15, 2013. He was appointed to the
Department on January 25, 1986. This start date includes a 2 year buy back of Military Service credit
under Public Act 096-1260. His total time of creditable service is 27 years,for a pension to be
calculated at 67.5%of his total salary for his last day of employment. At the time of his retirement his
pensionable salary is$134,794.40. The yearly pension benefit will be in the amount of$90,986.28 or
$7,582.19 monthly. The prorated amount for March 2013 (16) sixteen days is$3,913.39. His annual
COLA increases will occur as prescribed by the Illinois Pension Code. The calculations were completed
by Lauterbach and Amen with the approval of CFO Colleen Lavery. The motion to approve the pension
benefit was made by Christ, seconded by Roscher. Motion approved.
Disabilities: (1) Officer Gregory A. Schneider#241 has applied for a duty or non-duty pension on
October 30,2012. He is in the process of seeing several of the doctors.
Resignations: (0)
Terminations: (0)
Refunds: (0)
New Hires: (3)Three Probationary Police Officers were hired by the Department on January 3,2013.
The following officers made application to be accepted into the Elgin Police Pension Fund; Kevin
Kamenjarin#390; Matthew Jacobucci#391 and Colleen Formanek#392. All three are classified as
TIER II and were accepted into the Fund on separate motions by Christ; all three were seconded by
Troiola. Motion approved.
Portability of Creditable Service: (0)
Page 2
Public Act 0964260—Military Buy Back: (1)Deputy Chief Cecil Smith#149 had previously started
the Military Buy back of two (2) years of service time back in December 2011. In February 2012 D/C
Smith paid$46,793.52 towards the total amount due to have the two years transferred for his military
service. He then paid$6,028.21 in February 2013 to complete the payment for the transfer of 2 years of
creditable service. The total amount paid is $52,821.73. The principle amount was$10,293.21 and the
interest amount was$42,528.52. The calculations were performed by Lauterbach and Amen. A Motion
to accept the payments in return for the 2 years of creditable service time was made by Christ, seconded
by Troiola.Motion approved.
Miscellaneous:
a. Cary Collins is reviewing the Executive Session Minutes of the Board to determine if any should be
released. Tabled to next meeting.
b. The Board reviewed the agreement for services with Dr. Gruenberg for the Greg Schneider
examination. The Board approved the agreement on a motion by Christ, seconded by Troiola.
Motion approved. The Board will wait to send the agreement back to Dr. Gruenberg,pending the
examinations and conclusions received from the first 2 physician's reports.
c. Dr. Obolsky report on Sgt. Almeida is still being completed. Dr. Obolsky has been busy in court and
other reports.
d. The Active Trustee position currently held by Roscher is up for an election. Two members have
been nominated by the Active Members. They are James Roscher and Kevin Senne. An election
will be held with votes being counted on May 1, 2013.
e. The Retired Trustee position currently held by Christ is up for election. Ballots are being sent out
and are due back by April 30,2013.
f. The Mayoral appointment position currently held by Lamkin is up for re-appointment. Jim Lamkin
has asked to be re-appointed by Mayor Kaptain. The City Clerk Ms. Dewis has been notified of
Lamkin's wish to continue to serve on the Board and she will pass this on to Mayor Kaptain.
g. The Board reviewed the correspondences from Cary Collins's office and IPPAC reference upcoming
training dates.
h. The Board review the minutes of the Investment Committee's meeting on February 28, 2013.
i. The Board reviewed the closing of the old BMO Harris account and the opening of the new account
with BMO Harris. The Finance Department now has online access to view the account.
j. The Board reviewed the signed authorizations to transfer money from JP Morgan to PIMCO. This
was authorized at the January 16, 2013 meeting.
k. The Clerk sent out final notices to those retirees who had not returned the affidavits. All have been
turn in at the time of the meeting.
1. The 2012 DOI Annual Report is being compiled by Lauterbach and Amen. The City is in the
process of completing their annual audit of the Pension Fund.
m. The 2012 Internal Revenue Service tax forms have been completed and filed by Lauterbach and
Amen. The Fund has not been re-contacted by the IRS reference the discrepancy in the taxes filed in
2010. The Fund has sent the IRS all the information that was asked for and will continue to wait for
a response/decision.
n. CFO Colleen Lavery presented the Board with the 2013 Actuarial Report compiled by Timothy
Sharpe. CFO Lavery noted that on page 10 the tax levy was increasing to $5,659,869.00. This is an
increase over 2012 mostly due to the changes in Illinois Law concerning how the Tax Levy amount
is to be calculated. By making these changes that are required in calculating the Tax Levy, it will
reduce the percentage of funded liabilities to 45%. That leaves 55%of the Fund as unfunded
liabilities with these changes. CFO Lavery also told the Board that the City has already deposited an
additional $700,000.00 into the Fund above what the Tax Levy amount will be. Marquette
Associates will be looking to put that money to work in the coming weeks. Christ made a motion to
accept the City's 2013 Tax Levy amount of$5,659,869.00. This was seconded by Troiola. Motion
approved.
Page 3
o. The Board reviewed the materials in section n. of the agenda.
Executive Session: N/A.
With no further business the meeting was adjourned by President Lamkin at 2:24 p.m. on motion by
Roscher, second by Christ. Motion approved.
The next meeting will be held on July 17, 2013 ii) 1:30 p.m. The meeting location will be The
Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin,IL 60120.
Sincerely,
/
'•0r,
Thomas J. Quigley
Clerk
SCA L-0
Board Member Approval: Spd ek
gnature Title
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ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
INVESTMENT COMMITTEE MEETING NOTICE
June 20, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees announces
that an Investment Committee will be holding a meeting on June 27,
2013 at 2:00 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 meeting:
February 28, 2013.
Set next meeting date.
Sincerely, /
I / (►
Thomas J. Quigley
Clerk
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Elgin Police Pension Fund
151 Douglas Avenue
Elgin, IL 60120
Minutes of the Elgin Police Pension Fund, Investment Committee meeting,held on June 27,
2013. Present at the meeting(tele-conference)were Vice President Robert Christ, Clerk Thomas
Quigley and Mike Piotrowski of Marquette Associates.
Absent: Chief Financial Officer Colleen Lavery
Guests: None.
The meeting was call to order at 3:00 p.m. by Vice President Christ.
Treasurers Report: Mike Piotrowski went over the May 31,2013 Flash Report. A copy of
this report is attached to the minutes.
The Fund is still doing very well for 2013. The Fund is up approximately 7.0%through May
2013 with assets at$68,486,728.00. Through May 2013: The Bond Market was down .4%;
International Funds were up 7.6%and US Equities were up 14.4%. The Fund was over-
weighted away from Fixed Income. Principle US Property is up 4.5%over 3 months. Even
though PIMCO All Asset Fund is down it looks like it is in a good position to move up.
Fixed Income is still negative,it should be noted that JP Morgan is still performing better then
Mitchell,Vaught and Taylor(MVT). The difference is about .4%through May,however over a
1 year period JP Morgan is up .6%between the two firms.
In Domestic Small-Caps, Tocqueville has had a nice rebound up 12.1%YTD. Tocqueville will
still be on alert and monitored.
Dodge&Cox and Euro-Pacific on the International side are doing well even though they are
negative,they are beating their benchmarks. DFA even beat the benchmark for the month, again
it was negative however. DFA will still be on alert and be monitored.
The Federal Reserve is looking to phase out the buying of Mortgage Back Securities/Bonds in
the later months of 2013 and the markets are reacting to that in June 2013. The Fund might be
down about 1% from May 2013. Interest rates have risen especially on the 10 year bond,went
from 1.80%to 2.50% over about 2 months.
Internationals are still struggling with a lot of issues. Western Europe is in a recession.
The Fund is getting property tax funds from the Counties, Marquette will look to put that money
to work. They will look to put it back into Fixed Income since they believe the markets over-
reacted to the news of the Federal Reserve. The Committee at Marquette will look for the best
places to invest.
The next meeting date for the Committee will be set after the regular quarterly meeting(unless a
Special Meeting is needed and called by President Lamkin or V/P Christ).
With no further business to discuss,the meeting was adjourned by Vice President Christ at
3:16pm.
Sincerely,
Thomas J. Quigley
Clerk
Board Member Approval: �'n'"`" .,/ 717
Signature /
C
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ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
MEETING NOTICE
July 10, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday,July 17, 2013 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 April 17, 2013.
r" Treasurer's Report:
a. 2nd Quarter 2013 Executive Summary.
b. Bill Yocius of MVT presentation.
Expenses:
Deaths: (1) Myrtle Baumann died on June 21, 2013
Retirements: (1) Detective Joseph W. Miklitsch #235 retired on July 5, 2013.
Disabilities: (1) Gregory A. Schneider#241 filed for a non duty or duty disability
November 7, 2012 and is in the process of being examined by the Fund's physicians.
Refunds: (0).
Terminations: (0)
New Hires: (0)
r
The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, July 17,
2013. Present at the meeting was President James Lamkin, Vice President Robert Christ, Trustee Robert
O'Connor, Asst. Secretary James Roscher, Secretary Chris Troiola, Chief Financial Officer Colleen
Lavery,Attorney Cary Collins, and Clerk Thomas Quigley.
Absent: N/A
Guests: Mike Piotrowski and Kelli Schrade of Marquette Associates, Bill Yocius of Mitchell Vaught
and Taylor.
The meeting was call to order at 1:31 p.m. by President Lamkin.
Minutes of April 17, 2013 meeting were approved on a motion by Christ, seconded by Troiola. Motion
approved.
Treasurer's Report:
(1) Mike Piotrowski presented the 2nd Quarter 2013 Executive Summary. The Fund has performed
very well for the first quarter of 2013. As of June 30, 2013 the Fund is up 5.7% (Gross of Fees)
and 5.6% (Net of Fees). The Fund has an ending market value of$68,384,335.00. The
Annualized performance of the Fund over 10 years is 6.8%% (Net of Fees). During the quarter
Bond Yields have increased from 1.85%to 2.50%. That is the biggest increase in points for a
quarter since May 2004. Also the biggest percentage increase in 50 years.
(2) The Fund Managers are performing well. Dimensional Fund Advisors Intl SCV is still on alert
due to performance issues but have beat the benchmark for the year(last 12 months)24.1%versus
21.3%.
(3) Tocqueville Asset Management is also on alert due to under performance and is also returning
well below their benchmark 0.7% versus 2.5%. Tocqueville has been a manager for the Fund for
a very long time and over that period has increased the bottom line of the Fund. However in the
last several years in has come under fire and has decreased in its asset holdings from $750 mil to
now just $150 mil. Marquette has lost conviction in the management of Tocqueville. They seem
to he lost in what to do next. Most of their best performance has come from the health care sector.
Marquette is recommending that the Board terminate Tocqueville since it does not look like
Tocqueville will turn around anytime soon. The question of where to put the money held by
Tocqueville came up. After a question and answer period with the Board, Mike(Marquette) has
recommended that the money from Tocqueville should be transferred to Kayne Anderson
Rudnick. This because Kayne seems to do a very good job of limiting losses when the market
takes a down turn. Even though Kayne has floundered in the last 2 years over the long run it has
produced and even performed very well during the recession. They tend to be a little more
conservative and keep from having loss higher than the benchmark. Christ made a motion to
terminate Tocqueville as a Manager, seconded by Troiola. Roll call vote 5-yes and 0-no. Motion
approved. On a motion by Christ to follow the direction of Marquette and transfer the money to
Kayne Anderson Rudnick from Tocqueville, seconded by Roscher. Roll call vote 5-yes and 0-no.
Motion approved.
(4) Principle US Property was up 4.2% for the 2nd quarter. However, PIMCO was down 4.2% for the
2nd quarter. As time goes on these two Funds should do well for the Fund. PIMCO had some
exposure to the Bond Market causing the decrease.
(5) Mr. Yocius spoke of how MVT was performing.
A motion to accept Treasurers Report was made by Christ, seconded by O'Connor. Roll call vote 5-yes
and 0-no. Motion approved.
Expenses: The following expenses were approved as submitted on a motion by Christ, seconded by
Troiola. Motion approved by roll call vote 5 yeas–0 no.
Cary Collins Inv# 6063 Admin Services—April 2013 $1,260.00
6064 Scanning Services—April 2013 $180.00
6070 Scanning Services—May 2013 $246.00
6071 Admin Services—May 2013 $1,260.00
6084 Retainer July-Sept. 2013 $1,250.00
6122 Admin Services—June 2013 $1,260.00
6123 Scanning Services—June 2013 $198.00
State of Illinois DOI F58575 Compliance Fees FY 2013 $8,000.00
IPPAC 0788 Annual Membership Fee July 2013-June 2014 $500.00
INSPE Associates, LTD 41381 Schneider Disability Exam $4,050.00
42025 Almeida Annual Exam $14,227.20
JP Morgan 20130331-9174-A 1st Qtr Fee 2013 $8,727.14
20130630-9174-A 2nd Qtr Fee 2013 $7,899.88
Kayne Anderson Rudnick Inv# 10151051 1st Qtr Fee 2013 $13,275.00
Lauterbach &Amen Inv# 1142 Fees March 2013 $1,315.00
1327 Year end paperwork FY 2012 $1,350.00
1445 Fees April 2013 $1,315.00
Marquette Associates Inv# 130619 Fees June 1, 2013 –August 31, 2013 $8,750.00
130620 Fiduciary Services June 1, 2013–August 31, 2013 $2,500.00
Mitchell,Vaught & Taylor 2nd Qtr 2013 Fee $6,992.00
Torn Quigley Postage reimburse $88.30
Tocqueville Fees 13t Quarter 2013 $12,305.00
The Board is having Cary Collins inquire about a reduced rate on the INSPE-Almeida report due to the
amount and timeliness of the report.
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 Troiola. Motion approved by roll call vote 5 yes–0
no. This is subject to approval by City Treasurer Lavery
The Board approved the monthly pension check payouts as noted in meeting notes.
Deaths: (1) Myrtle Baumann died on June 21, 2013. There are no survivors, so the pension will
terminate per State Statute.
Retirements: (1) Detective Joseph Miklitsch #235 retired on July 5, 2013. He was appointed to the
Depattment on April 17, 1988. This start date includes a 7 years of Portability time and transfer time
from Glen Ellyn Police Department and IMRF. His total time of creditable service is 25 years, for a
pension to be calculated at 62.5% of his total salary for his last day of employment. At the time of his
retirement his pensionable salary is $90,418.65.
Page 2
The original yearly pension benefit will he in the amount of$56,511.72 or $4,709.31 monthly. The
prorated amount for July 2013 (26) twenty-six days is $3,949.74. His annual COLA increases will occur
as prescribed by the Illinois Pension Code. The calculations were completed by Lauterbach and Amen
with the approval of CFO Colleen Lavery. The motion to approve the pension benefit was made by
Christ, seconded by Troiola. A roll call vote of 5-yes and 0-no. Motion approved.
Disabilities: (1) Officer Gregory A. Schneider#241 has applied for a duty or non-duty pension on
October 30, 2012. He is in the process of seeing several of the doctors. The Board is waiting for the
final reports and for him to see the last doctor. Cary Collins is looking at a possible late September 2013
disability hearing date depending upon his attorney availability.
Resignations: (0)
Terminations: (0)
Refunds: (0)
New Hires: (0)
Portability of Creditable Service: (0)
Miscellaneous:
a. Cary Collins reviewed the Executive Session Minutes of the Board and recommends that the Board
consider releasing 10 of the Executive session minutes. All of these minutes are at least 9 years old
and 5 pertain to the 2004 Morgan Stanley Dean Witter litigation,4 refer to non-specific personnel
matters and one is about whether to release any Executive Meeting Minutes. The Board had a brief
discussing and on a motion by Christ to release the following Executive Session Meeting Minutes:
January 15, 2004; April 5, 2004; April 15, 2004; July 15, 2004; September 27, 2004; May 1, 2003;
July 25, 2002; October 31, 2002; May 13, 2002; January 27, 2000 and to have the Clerk destroy any
voice recording of Executive Sessions older than 18 months as long as there is a written record of
those proceedings. Seconded by Troiola. Motion approved. It should be noted all other Executive
Session Meeting Minutes will still not be released this includes any from disability hearings.
b. The Board reviewed the Request for Proposal for Investment management Services that was drawn
up by Clerk Quigley and CFO Lavery. Attorney Collins reviewed it. The RFP was detennined to be
in order and it should be published per the Board.
c. Mayor Kaptain re-appointed James Lamkin to the Board on April 17, 2013 to a two year term.
d. The retired members re-elected Robert Christ to the Board for a two year term as of April 30, 2013
with the tally being 48-0.
e. The active members elected James Roscher over Kevin Senne to a two year term during a vote
concluding on May 1, 2013. Roscher received 77 votes, Senne received 45 and there were 2
abstentions.
f. The Board reviewed the report from Dr. Obolsky regarding Pete Almeida. The Board will be
sending Almeida to another doctor and then a disability hearing will be set up for Fall of 2013.
g. The Board reviewed the correspondences from Cary Collins's office and IPPAC reference upcoming
training dates. All 5 members of the Board will attend the Ethics & Continuing Ed sessions in St
Charles Illinois on Sept. 3 &4, 2013.
h. The Board review the minutes of the Investment Committee's meeting on June 27, 2013.
i. The Board reviewed the House Bill 5088 Report. Roscher made a motion to approve and sign the
report, seconded by Christ. Motion approved.
Page 3
j. The 2012 DOI Annual Report is completed and the Certification Form has been signed and notarized
and sent back to the DOI.
k. The Fund complied with a FOIA request from Mr. Zack Cziryak.
1. The Board reviewed the letter it received from the IRS saying the amount of taxes it sent to the IRS
did not match the forms sent in in FY 2011. Lauterbach and Amen replied to the IRS with the forms
that were filed and the calculations used which does match. It would appear that the IRS has
possibly confused another tax payer id with the Funds. The IRS is investigating FY 2011 and also
they arc still looking into the reply for FY 2010.
m. Clerk Quigley had a meeting with the Illinois Secretary of State, Dept. of Archives Representative
Steve Colaizzi. The Fund has been set up with an account where by it can start to destroy some of
the records it has compiled over the past 104 years since its inception in 1909. The Clerk will
continue this process with the assistance of the Board.
n. The Board of Trustees had an election for Officers Positions on the Board. Roscher made a motion
to keep the same individuals in the same positions that they held in the preceding year. This would
be as follows: President-Lamkin; Vice President-Christ; Secretary-Troiola; Asst. Secretary-
Roscher; Trustee-O'Connor. Motion seconded by Christ. Motion approved.
Public Comments: N/A
Executive Session:N/A.
With no further business the meeting was adjourned by President Lamkin at 2:25 p.m. on motion by
Roscher, second by Christ. Motion approved.
rThe next meeting will be held on October 16, 2013 ii 1:30 p.m. The meeting location will be
The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120.
"Larc4
Sincerely,
Thomas J. Quigley
Clerk
12 A
4
Board Member Approval: _., l 2-7'q "--V-4-----6.------- . ;2/ , Ste'_(--
Signature Title
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Page 4
•
ELGIN PO T E PENSION FUND
151 Douglas Ave
Eight, IL 60120
INVESTMENT C"` !"LTTEE MEETING NOTICE
September 11,2013
The ELGIN POLICE P N ON FUND, Board of Trustees announces
that an Investment Coni will be holding a meeting on September
18, 2013 at 2:00 p.m. The r! eeting will be held at City Treasurer's
Office 150 Dexter Court F°<' , IL 60120
Agenda:
Tele-conference with Marque±e Associates.
Discuss the Funds ti. mcial status.
Discuss/recommer,. _;.c.nges to the Funds allocations and re-
balance if necessar,
Approve the minutes of t' ,wing meeting:
June 27, 2013.
Set next meeting date.
Since ly,
Thomas J. Quigley
Clerk
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Elgin Police Pension Fund
151 Douglas Avenue
Elgin, IL 60120
Minutes of the Elgin Police Pension Fund, Investment Committee meeting,held on September
18,2013. Present at the meeting(tele-conference) were Vice President Robert Christ, CFO
Colleen Lavery, Clerk Thomas Quigley and Mike Piotrowski of Marquette Associates.
Absent: None
Guests: None.
The meeting was call to order at 2:01 p.m.by Vice President Christ.
Treasurers Report: Mike Piotrowski went over the August 31, 2013 Flash Report. A copy of
this report is attached to the minutes.
The Fund is still doing very well for 2013. The Fund is up approximately 7.7%through August
2013 with assets at$71,387,016.00. For the year through August 2013: The Bond Market was
down 1.5%; International Funds were up 8.0% and US Equities were up 16.9%. The Fund was
slightly over-weighted away from Fixed Income and Internationals. Principle US Property is up
3.2%over 3 months. Even though PIMCO All Asset Fund is down it looks like it is in a good
position to move up in the future. The Fund might have entered the market there a little early.
Dodge&Cox and Euro-Pacific on the International side are still doing well even though they are
negative for the month of August 2013. On page 3 of the August Report YTD the Internationals,
Dodge and Cox are up 8.4% compared to benchmark of 2.9%. Euro-Pacific was up 4.4%
compared to the 2.9%benchmark. DFA was up 11.9% compared to the benchmark of 12.0%.
DFA will still be on alert and be monitored.
On the US Equity front, Kayne Anderson has protected the principle that came to them when
Tocqueville was terminated on July 30, 2013. Kayne started to take over the Tocqueville
Account on August 7,2013 and the transfer was completed by August 14, 2014, at this time
Kayne had control and had transformed the full amount of the transfer into their current
structure. The entire US Equity Composite is up 16.9%YTD,which matches the benchmark.
The Federal Reserve has postponed the phasing out the buying of Mortgage Back
Securities/Bonds until at least October 2013. The Fund has gained approximately 2-2.5%in
September 2013. The only downside to waiting to stop QE3 is that the downturn could be more
since the Federal Reserve has pushed the phasing out period into the future. The additional $2
million the City had given the Fund. All went into Fixed Income from the Marquette Investment
Committee. This brought the Fixed Income sector of the Fund closer to the Investment Policy
Guidelines and it looked like a good time to add money since the bonds had risen so quickly they
may settle back down for some nice earnings for the Fund. There were other factors affecting
the market,being Syrian civil war and Europe coming out of recession. If these are resolved it
might be a good time in the future to increase International Investment. Marquette will monitor
and discuss this at the October meeting.
The Fund is getting property tax funds from Kane/Cook Counties,possibly as much as$1
million, Marquette will look to put that money to work. They will look to put it back into
International Funds if that continues to grow. The Investment Committee at Marquette will look
for the best places to invest and advise the Board.
The next meeting date for the Committee will be set after the regular quarterly meeting (unless a
Special Meeting is needed and called by President Lamkin or V/P Christ).
With no further business to discuss,the meeting was adjourned by Vice President Christ at
2:17pm.
Sincerely,
,------7j
Thomas J. Quigley
Clerk
Board Member Approval: I,9(/"Irvl-
' 1 ' I f 3
Signature Date
ELGIN POLICE PENSION BOARD
IN THE MATTER OF )
THE CLAIM OF: )
) No. 09 EPPB 901
PETE ALMEIDA )
Applicant )
NOTICE OF HEARING
September 24, 2013
Pete Almeida
665 Renee Drive
South Elgin, IL 60177
Please be advised that the Elgin Police Pension Board will conduct an
administrative hearing on October 16, 2013 at 2:00 PM at the City of Elgin Police
Department, North Lobby Community Room, 151 Douglas Ave, Elgin or such location
as designated regarding the possible termination of disability pension benefits.
That you may be represented by legal counsel and may provide testimony and
evidence in support of this claim for benefits.
That the hearing is being conducted under the authority granted Elgin Police Pension
Fund under Chapter 40, Act 5 Section 3 of the Illinois Revised Statues.
ELGIN POLICE PENSION BO RD
Collins & Radja
1710 White Oak Lane
Hoffman Estates IL 60192
(847) 519-0010
r
. ,
ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
MEETING NOTICE
July 10, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday, October 16, 2013 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 July 17, 2013.
Treasurer's Report:
a. 3rd Quarter 2013 Executive Summary.
b. Discussion/approval to modify Fixed Income Guidelines for JP Morgan & MVT.
c. Bill Yocius of Mitchell, Vaught and Taylor(MVT) presentation.
d. RFP Review/discussion/vote for Investment Manager.
Expenses:
Deaths: (1) Robert J. Murphy #88. Surviving Dependent Samantha A. Murphy application.
Retirements: (0)
Disabilities: (2) Gregory A. Schneider#241 filed for a non duty or duty disability
November 7, 2012.
Pete Almeida has an Administrative Hearing on the possibility of
termination of pension benefits at 2pm on October 16, 2013.
Resignations: (1) Colleen E. Formanek #392 resigned on September 19, 2013.
Refunds: (1) Colleen E. Formanek #392 has contributed $4,656.70 into the Fund.
Terminations: (1) Gregory A. Schneider#241 was terminated by Chief Swoboda on July
29, 2013.
New Hires: (4) hector Gutierrez #393; Michael Hutton #394; Lisandro Ramirez #395 all
hired on August 19, 2013. David R. Mathis #396 hired on September 25, 2013. All 4 were
rhired as Probationary Police Officers and are TIER II.
Miscellaneous:
a. Letter from Lauterbach and Amen reference benefits to Roy and Shirley Beverly.
b. Renewal of the Ullico Fiduciary Liability Insurance Policy.
c. DOI 2013 Tax Levy Report
d. Investment Committee Meeting -- Minutes & Agenda for September 18, 2013.
e. Subpoena for Pension Records from the City of Elgin for Gregory Schneider.
f. Collins and IPPAC about upcoming Holiday training date.
g. Communications between the Fund and Tocqueville Asset Management.
h. Annual Disability Exams.
i. 2014 Meeting Dates.
j. Miscellaneous correspondences.
1. Lauterbach and Amen monthly reports.
2. Kayne Anderson quarterly reports.
3. Tocqueville Asset Management monthly reports.
Public Comments:
Executive Session:
rAdjournment:
Sine rely,,,
Thomas J. Q igley
Clerk
r
The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund,Board of Trustees,October 16,
2013. Present at the meeting was President James Lamkin, Vice President Robert Christ, Trustee Robert
O'Connor, Asst. Secretary James Roscher, Secretary Chris Troiola, Chief Financial Officer Colleen
Lavery,Attorney Cary Collins, and Clerk Thomas Quigley.
Absent: N/A
Guests: Mike Piotrowski and Eric Gaylord of Marquette Associates, Bill Yocius of Mitchell Vaught and
Taylor.
The meeting was call to order at 1:32 p.m. by President Lamkin.
Minutes of July 17,2013 meeting were approved on a motion by Christ, seconded by Troiola. Motion
approved.
Treasurer's Report:
(1) Mike Piotrowski presented the 3rd Quarter 2013 Executive Summary. The Fund has performed
very well year to date. Year to date(as of September 30,2013)the Fund is up 11.3%(Gross of
Fees) and 11.1% (Net of Fees). The Fund had investment earnings of$3.6 million for the quarter
$8.6 million over the last 12 months, and $16.2 million over the last three years. The Fund has
an ending market value of$74,482,164.19. The Annualized performance of the Fund over 10
years is 7.0% (Net of Fees).
(2) The Fund Managers are performing well. Dimensional Fund Advisors Int'l SCV is still on alert
due to performance issues and Marquette is recommending that they be taken off Alert Status
and returned to In Compliance. The Board agreed with Marquette in changing DFA's status.
(3) Principle US Property was up 2.6%(Net of Fees) for the 3rd Quarter. PIMCO was up 3.0%
(Net of Fees)for the 3rd Quarter. As time goes on these two Funds should do well for the Fund.
(4) The biggest concern right now is the continued fiscal stalemate that is occurring in Washington
D.C. The 4 week Treasury was up from zero to .3%as investors were concerned with the
upcoming debt ceiling debate. The Fund is slightly under-weight to Small Caps and Fixed
Income and over-weight in Large Caps and Internationals.
(5) Marquette presented the updated Investment Policy Guidelines for the Fixed Income Investment
Managers. They are recommending that the JP Morgan mandate be expanded. The previous
10%limit to corporate bonds within their guidelines will be removed. They will also now be
permitted to invest in BBB corporate bonds (IPG pages 16-17). Their performance benchmark
will be changed to the BarCap intermediate government/credit index (IPG page 25).
(6) Marquette presented the updated Investment Policy Guidelines for the Fixed Income Investment
Managers. They are recommending the Mitchell Vaught and Taylor mandate be expanded. Their
new upper limit to corporate bond investments within the portfolio will now be increased from
10%to 25%. All corporate bonds within their portfolio must be rated A or above. (IPG pages
14-15). Their performance benchmark will remain the BarCap intermediate government index.
(IPG page 25).
Page 1
A motion was made by Christ to change the JP Morgan investment guidelines. The previous 10%
limit to corporate bonds will be removed. They will also be permitted to invest in BBB corporate
bonds. The benchmark will also be changed as recommended. Seconded by Roscher. Motion
approved by Roll Call vote 5-yes and 0-no.
A motion was made by Christ to change the Mitchell,Vaught and Taylor investment guidelines. The
maximum permissible investment in corporate bonds will increase from 10%to 25%. The rating of
corporate bonds that MVT can invest in did not change. It is still A rated and above corporate bonds.
Seconded by Roscher. Motion approved by Roll Call vote 5-yes and 0-no.
Mr. Yocius spoke of how MVT was performing, doing okay in this environment,up approx.5-.6%for
the 3`d Quarter. MVT is staying short on duration of maturity and less risk.
The Board reviewed and discussed the Investment Advisors RFP's that it received from LaSalle Street
Raymond James,Marquette Associates and Wells Fargo Advisors. Roscher made a motion to renew
Marquette Associates as the Investment Advisor for a period not to exceed 5 years. Seconded by
Christ. The motion was approved by a roll call vote 5-yes and 0-no.
A motion to accept Treasurers Report was made by Christ, seconded by Troiola. The motion was
approved by a roll call vote 5- yes and 0-no.
Expenses: The following expenses were approved as submitted on a motion by Christ, seconded by
Troiola. Motion approved by roll call vote 5-yes and 0-no.
Cary Collins Inv#6127 Admin Services—July 2013 $1,260.00
6134 Admin Services—August 2013 $1,260.00
6148 Retainer Oct.-Dec. 2013 $1,250.00
6182 Admin Services—Sept. 2013 $1,260.00
IPPAC 0814 Annual Board Training $1,300.00
Kayne Anderson Rudnick Inv# 10151052 2nd Qtr Fee 2013 $13,550.00
Lauterbach &Amen Inv# 1718 Fees May 2013 $1,315.00
1967 FY 2012 DOI Annual Report $1,900.00
2057 Fees June 2013 $1,315.00
2362 Fees July 2013 $1,315.00
2639 Fees August 2013 $1,315.00
Marquette Associates Inv# 130919 Fees Sept. 1, 2013 –Nov. 30,2013 $8,750.00
130920 Fiduciary Services Sept 1, 2013–Nov. 30,2013 $2,500.00
Mitchell,Vaught&Taylor 3rd Qtr 2013 Fee $6,756.00
4th Qtr 2013 Fee $6,878.00
Tom Quigley Postage reimburse $61.56
Tocqueville Fees 2nd Quarter 2013 $12,488.00
Fees 3`l Quarter 2013 (prorated) $4,280.00
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 Troiola. Motion approved by roll call vote 5-yes and
0-no. This is subject to approval by City Treasurer Lavery
The Board approved the monthly pension check payouts as noted in meeting notes.
Deaths: (1) Robert J. Murphy#88 died on October 1,2013. His has a 14 yoa dependent daughter
Samantha A. Murphy who has made application to the Board for the Surviving Dependent pension
benefit. Per State Statute she will receive this until she turns 18 yoa on motion by Christ,seconded by
Troiola. Motion approved.
Retirements: (0)
Disabilities: (2)Mr. Pete Almeida was scheduled to have an Administrative Hearing on the possibility
of termination of his benefits on October 16, at 2pm. However,his attorney Ms. Bell requested a
reschedule of the hearing which was granted.
Officer Gregory A. Schneider#241 has applied for a duty or non-duty pension on
October 30, 2012. The Board has received all the necessary reports and is trying to set up a date with his
attorney for a hearing in the near future.
Resignations: (1) Colleen E. Formanek#392 resigned on September 19, 2013.
Terminations: (1) Officer Gregory A. Schneider#241 was terminated by Chief Swoboda on July 29,
2013.
Refunds: (1) Colleen E. Formanek requested a refund of her contributions. A motion by Christ to
refund her entire amount of pension contribution totaling$4,656.70 was made, seconded by Troiola.
Motion approved.
New Hires: (4) There were four new Probationary Police Officers that made application to the Fund.
They were as follows: Hector Gutierrez#393; Michael Hutton#394; Lisandro Ramirez#395 all hired on
August 19,2013. David R. Mathis was hired on September 25, 2013. They each were accepted into the
Fund on a separate motion by Christ, seconded by Troiola. All 4 motions were approved. All 4
Probationary Officers are TIER II.
Portability of Creditable Service: (0)
Miscellaneous:
a. The Board received a letter from Lauterbach and Amen reference the benefits that Roy and Shirley
Beverly are receiving. The Board is taking that letter under advisement.
b. The Board reviewed the Renewal of the Ullico Fiduciary Liability Insurance Policy. The Board
decided to renew the policy with the$2,000,000.00 limit. On a motion by Roscher to renew the
policy with Ullico and to pay the fee associated with the policy, seconded by Christ. Motion
approved.
c. The DOI sent over the 2013 Tax Levy Report since the signed certificate form was submitted and
received. The Board reviewed this report.
d. The Board reviewed the agenda and minutes of the September 18, 2013 Investment Committee
Meeting.
e. The City of Elgin issued a subpoena to the Board for the pension records of Gregory Schneider#241.
The Board complied with the subpoena through their attorney Cary Collins.
1. The Board reviewed the upcoming IPPAC training scheduled for December 6, 2013.
g. The final termination paperwork between the Board/Marquette and Tocqueville Asset Management
were received. As well as the letter transferring the entire Fund value held by Tocqueville to Kayne
Anderson Rudnick.
h The annual disability exams have been scheduled for Bahe,Copher, and Santucci-Brady.
i. The 2014 regular quarterly meetings were set as follows: January 15, 2014; April 16, 2014; July 16,
2014 and October 15, 2014.
j. The Board reviewed the Material from Lauterbach and Amen, Kayne Anderson and Tocqueville.
Page 3
Public Comments: N/A
Executive Session:N/A.
With no further business the meeting was adjourned by President Lamkin at 2:13 p.m. on motion by
Roscher, second by Christ. Motion approved.
The next meeting will be held on January 15, 2014 & 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
Board Member Approval: z145
� � -
Signature Title
Page 4
ELGIN POLICE PENSION FUND
151 Douglas Ave
Elgin, IL 60120
INVESTMENT COMMITTEE MEETING NOTICE
November 26, 2013
The ELGIN POLICE PENSION FUND, Board of Trustees announces that
an Investment Committee will be holding a meeting on December 3, 2013 at
2:00 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 meeting:
September 18, 2013.
Set next meeting date.
Sincerely,
% y).72 y: CGS...
Thomas J. Quigley
Clerk
''
Elgin Police Pension Fund
151 Douglas Avenue
Elgin, IL 60120
Minutes of the Elgin Police Pension Fund, Investment Committee meeting, held on December 3,
2013. Present at the meeting (tele-conference) were Vice President Robert Christ, Clerk Thomas
Quigley and Mike Piotrowski of Marquette Associates.
Absent: CFO Colleen Lavery
Guests: None.
The meeting was call to order at 2:00 p.m. by Vice President Christ.
Treasurers Report: Mike Piotrowski went over the October 31, 2013 Flash Report. A copy of
this report is attached to the minutes.
The Fund is still doing very well for 2013. The Fund is up approximately 13.8%through
October 2013 with assets at $75,897,826.00. For the year through August 2013: The Bond
Market was down-0.3%; International Funds were up 21.5% and US Equities were up 25.8%.
The Fund was slightly over-weighted away from Fixed Income and Internationals as in previous
reports. Principle US Property is up 2.4%over 3 months. PIMCO All Asset Fund is up 3.6%for
the last 3 months.
Dodge& Cox, Euro-Pacific and DFA on the International side are all up for the month of
October 2013. On page 3 of the October Report YTD the Internationals, Dodge and Cox are up
22.5%compared to benchmark of 14.1%. Euro-Pacific was up 15.7% compared to the 14.1%
benchmark. DFA was up 27.9% compared to the benchmark of 25.8%. DFA is off the Alert
Status as of the October 2013 quarterly meeting.
The entire US Equity Composite is up 25.8%YTD, which is just below the benchmark of 26.4%.
The Federal Reserve has postponed the phasing out the buying of Mortgage Back
Securities/Bonds until at least 2014. This could cause 2014 to be a volatile year. The Fund has
gained approximately 1.2% in November 2013. Marquette will re-balance the Fund so that the
allocations are in-line with the Investment Policy Guidelines. There are no big expectations for
2014.
The next meeting date for the Committee will be set after the regular quarterly meeting (unless a
Special Meeting is needed and called by President Lamkin or V/P Christ).
With no further business to discuss,the meeting was adjourned by Vice President Christ at
2:15pm.
Sincerely,
Thomas J. Quigley
Clerk
Board Member Approval: /< ( ,�'�_ 4_— e?),-/
Signature Date
•
ELGIN POLICE PENSION BOARD
IN THE MATTER OF )
THE CLAIM OF: )
) No. 09 EPPB 901
PETE ALMEIDA )
Applicant )
NOTICE OF HEARING
December 9, 2013
Pete Almeida
665 Renee Drive
South Elgin, IL 60177
Please be advised that the Elgin Police Pension Board will conduct an
administrative hearing on December 20, 2013 at 2:00 PM at the City of Elgin Police
Department, North Lobby Community Room, 151 Douglas Ave, Elgin or such location
as designated regarding the possible termination of disability pension benefits.
�* That you may be represented by legal counsel and may provide testimony and
i evidence in support of this claim for benefits.
That the hearing is being conducted under the authority granted Elgin Police Pension
Fund under Chapter 40, Act 5 Section 3 of the Illinois Revised Statues.
ELGIN POLI;E PENSION BR 'RD
By: (
Collins & Radja
1710 White Oak Lane
Hoffman Estates IL 60192
(847) 519-0010
C