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HomeMy WebLinkAbout2014 Police Pension Fund Minutes & Agendas ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE January 9, 2014 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday, January 15, 2014 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 16, 2013. rTreasurer's Report: a. 4th Quarter 2013 Executive Summary. b. Updated Marquette Associates Investment Consulting Agreement. c. CFO Lavery will discuss the Funding Sources of the Tax Levy. d. Bill Yocius of Mitchell, Vaught and Taylor(MVT) presentation. Expenses: Deaths: (1) Elizabeth A. Copher #195 died on January 5, 2014. The surviving spouse David C. Copher is making an application. Retirements: (1) Sgt. Edward J. Cummings #179 retired on January 11, 2014. Disabilities: (2) Gregory A. Schneider #241 filed for a non duty or duty disability November 7, 2012, his disability case has been put on hold per his attorney. Pete Almeida's Administrative Hearing on the possibility of termination of pension benefits is pending. Resignations: (0) Refunds: (0) Terminations: (0) N:w-Hires: (0) (1 Miscellaneous: a. Annual 3% COLA Increases. b. Letter of Engagement from Lauterbach and Amen for years 2014-2016. c. Cary J. Collins Retainer. d. Notice from IRS reference Tax Year 2011 issues being resolved. e. Annual Affidavits. f. Investment Committee Meeting -- Minutes & Agenda for December 3, 2013. g. Annual Disability Exams. h. Executive Session Meeting Minutes--Release or not to Release. i. Miscellaneous correspondences. 1. Lauterbach and Amen monthly reports. 2. Kayne Anderson quarterly reports. Public Comments: Executive Session: Adjournment: Sincerely Thomas J. Quigley Clerk r The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees,January 15, 2014. 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, Bill Yocius of Mitchell Vaught and Taylor and Bill Tomazin of Lauterbach and Amen. The meeting was call to order at 1:30 p.m.by President Lamkin. Minutes of October 16, 2013 meeting were approved on a motion by Christ, seconded by O'Connor. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 4th Quarter 2013 Executive Summary. The Fund has performed excellent year to date. Year to date(as of December 31, 2013)the Fund is up 16.7%(Gross of Fees)and 16.4% (Net of Fees). The Fund had investment earnings of$3.75 million for the quarter, $11 million over the last 12 months, and $17.3 million over the last three years. The Fund has an ending market value of$76,964,201.49. The Annualized performance of the Fund over 10 years is 6.9% (Net of Fees). (2) Principle US Property was up 12.6% since the Fund started with then in early 2013. PIMCO was up 0.8% since the Fund started with them in early 2013. As time goes on these two Funds should do well for the Fund. (3) The biggest concern right now is the continued fiscal stalemate that is occurring in Washington D.C. This combined with the Affordable Care Act and stagnate personal income in the US will make things challenging in 2014. (4) Marquette presented the updated Investment Consulting Agreement to the Board since they were selected at the October 2013 meeting as an Investment Advisor through the RFP. The Board and Attorney Cary Collins reviewed and discussed it. A motion to enter into the agreement with Marquette Associates was made by Christ, seconded by O'Connor. Motion approved. (5) CFO Lavery spoke to the Board about where the funding for this year's Tax Levy will come from. The Tax Levy itself will generate$5,310,000.00 of the total; with another$350,000.00 will come from the Personal Property Tax. For a total Tax Levy of$5,660,000.00 coming into the Fund. Mr. Yocius spoke of how MVT was performing, doing okay in this environment. For the 4th Q the Fund was down -0.22%. MVT is staying short on duration of maturity on average 2.94 and less risk. A motion to accept Treasurers Report was made by Christ, seconded by O'Connor. The motion was approved by a roll call vote 5-yes and 0-no. Page 1 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. Buffalo Grove Orthopaedics Bahe IME $900.00 Copher IME $950.00 Cary Collins Inv#6186 Admin Services—October 2013 $1,260.00 6187 Schneider's Disability $8,139.93 6191 Admin Services—November 2013 $1,260.00 6244 Admin Services—December 2013 $1,260.00 Dr. Richard Harris Schneider Psych Evaluation $4,200.00 INSPE #43176 Almeida Psych Evaluation $540.00 IPPAC 0853 Board Trainin $50.00 J.P. Morgan 20130930-9174-A 3r Q Fee 2013 $8,368.26 Kayne Anderson Rudnick Inv# 10151053 3rd Qtr Fee 2013 $23,383.00 Lauterbach &Amen Inv#3214 Fees September 2013 $1,315.00 3512 Fees October 2013 $1,315.00 4010 Fees November 2013 $1,315.00 2639 Fees August 2013 $1,315.00 Marquette Associates Inv# 131221 Consulting Fees Dec 1. 2013 –Feb 28, 2014 $8,750.00 131222 Fiduciary Services Dec 1,2013 –Feb 28, 2014 $2,500.00 Mesirow Financial # 828112 Fiduciary Liability Insurance $9,197.00 Tom Quigley Postage reimburse $136.30 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 O'Connor. 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 packet. Deaths: (1) Elizabeth A. Copher#195 died on January 5, 2014. Her husband David Copher has made application to the Board for the Surviving Spouse pension benefit. Motion to approve the Spousal Benefit of$3,020.79 to David Copher was made by Christ, seconded by Troiola. Motion approved. Retirements: (1) Sgt. Edward J. Cummings retired on January 11, 2014. Sgt. Cummings has 23 years of creditable service for a pension of 57%of his pensionable salary. The 2014 pay scale has not been finalized by the City of Elgin as of this meeting so the pensionable salary cannot be computed at this time. Sgt. Cummings turns 50 you in March 2014 which will give the City time to finalize the pay scale. A motion to accept Sgt. Edward J. Cummings pension benefit application and to have the pensionable salary that will be paid be calculated/approved by CFO Lavery and begin payments as of March 2014 was made by Christ, seconded by Roscher. Motion approved. Disabilities: (2)Mr. Pete Almeida,the Board discussed with Cary Collins about sending Mr. Almeida to Dr. Weine. The Board decided to send him to be evaluated by Dr. Weine, the appointment will be scheduled through Cary Collins office. A hearing in February 2014 is being looked at. Officer Gregory A. Schneider#241 has applied for a duty or non-duty pension and the Board is looking to schedule a hearing date in February 2014. Resignations: (0) Terminations: (0) Page 2 Refunds: (0) New Hires: (0) Portability of Creditable Service: (0) Miscellaneous: a. The Board approved the Annual 3%COLA increases calculated by Lauterbach and Amen on a motion by Christ, seconded by Roscher. Motion approved. b. The Board reviewed the Letter of Engagement from Lauterbach and Amen to continue to perform the accounting services for the Fund. A motion to accept the Letter of Engagement with Lauterbach and Amen was made by Christ, seconded by Troiola. Motion approved. c. The Board reviewed the increase in the retainer by Cary Collins in the amount of$25.00 a quarter ($100.00 yearly). A motion to approve the increase was made by Christ, seconded by Troiola. Motion approved. d. The Board reviewed the letter from the IRS reference the Tax Year 2011,in which the IRS says the discrepancy that was raised by the IRS was resolved on their end with no further action needed by the Board. e. The annual affidavits are being returned. There are about 19 still outstanding. The Board wants those 19 to be sent letters stating the affidavits need to be sent back to the Fund or the benefits the pensioners receive maybe suspended. This is the way the Board determines if members are still alive and entitled to the benefit as required by the State Pension Code. 1. The Board reviewed the agenda and minutes of the December 3, 2013 Investment Committee Meeting. g. The annual disability exams are taking place. Bahe, Copher, Kaminski are still disabled, while Santucci-Brady is still pending an exam. . h. The Board reviewed the Executive Session minutes and determined that none of these minutes are to be released at this time. i. The Board reviewed the Material from Lauterbach and Amen,Kayne Anderson. j. A motion was made by Christ to pay Cary Collins's invoice number 6250 in the amount of $5,691.98,seconded by Troiola. Motion approved. Public Comments: N/A Executive Session: N/A. With no further business the meeting was adjourned by President Lamkin at 2:05 p.m. on motion by Roscher, second by Christ. Motion approved. The next meeting will be held on April 16, 2014(x. 1:30 p.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sincerely, dep) (zee Thomas J. Quigley Clerk Board Member Approval: 45s y Signature Title r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 601.20 INVESTMENT COMMITTEE MEETING NOTICE March 6, 2014 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on March 12, 2014 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. Discuss any changes to Fund Managers. Approve the minutes of the following meeting: December 3, 2013. Set next meeting date. Sincerely, Thomas J. Quigley Clerk r Elgin Police Pension Fund 151 Douglas Avenue Elgin, IL 60120 Minutes of the Elgin Police Pension Fund, Investment Committee meeting,held on March 12, 2014. 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 2:00 p.m. by Vice President Christ. Treasurers Report: Mike Piotrowski went over the February 28,2014 Flash Report. A copy of this report is attached to the minutes. The Fund is reversing the January 2014 losses with a strong February 2014,with nice gains in the Equity Market. The Fund is mostly in line with its benchmarks. No re-balancing is needed at this time. In January the market reacted to weaker economic numbers than expected. One note is that in Fixed Income Mitchell,Vaught and Taylor is up .9%while JP Morgan is up 1.3%. Both are positive,however over the years, the financial return difference the Fund would see between the two Managers could start to add up. CFO Lavery asked if there was a policy to keep the two Managers at a level close to 50-50%. Mike said there was no policy. In Small Caps, Kayne Anderson is lagging and Marquette will monitor them. Although in up markets they tend to lag behind but in the down markets they tend to do better. There are no other Small Caps Managers out there to go to at this time,even if the Board would want a different manager search to see if Kayne Anderson should be changed. The Small Cap Market valuation is pretty full. The trend looks like the market will improve but not rapidly. CFO Lavery asked Marquette to contact Kayne Anderson and try to get a better fee negotiated if possible since the Fund doubled the amount they control and the returns are lower than the benchmark. Mike said they will speak to them. In Real Estate Principle US Property was up 13% over the past 12 months. And PIMCO was up slightly at 1.2%for the previous 12 months. Both outperformed Fixed Income. 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 2:14pm. Sincerely, Thomas J. Quigley Clerk Board Member Approval: — y Signature Date ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE April 9, 2014 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday, April 16, 2014 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 15, 2014. '* Treasurer's Report: a. 1st Quarter 2014 Executive Summary. b. Bill Yocius of Mitchell, Vaught and Taylor (MVT) presentation. c. CFO Lavery will present/discuss the 2014 Actuarial Report. Expenses: Deaths: (2) Shirley Mae Sexton died January 11, 2014. There are no Surviving Dependent beneficiaries and her spousal benefits will cease per the State Pension Code. Frederick P. Lugar #19 died on March 25, 2014. Judith A. Lugar is making an application for a Surviving Spousal Benefit Pension. Retirements: (3) Senior Patrolman Leon P. Filas #146 retired on March 21, 2014. Sgt. Donald W. Thiel #145 retired on March 28, 2014. Officer Michael S. Gough #133 retired on April 4, 2014. Disabilities: (2) Gregory A. Schneider#241 has withdrawn his application for a non-duty or duty disability as of February 12, 2014. Pete Almeida's Administrative Hearing on the possibility of termination of pension benefits is pending. Resignations: (1) Detective Norma R. Thiel #263 resigned on March 28, 2014. • Refunds: (1)Norma R. Thiel made a written request for a refund of her contributions totaling $105,850.25 on February 21, 2014. Terminations: (0) New Hires: (5) Christopher W. Jones #397made application to be accepted into the Pension Fund on January 10, 2014. Michael McCarthy #398; Martin Vega #400 and Latasha Williams #401 all made application to be accepted into the Pension Fund on March 28, 2014. Daniel Kazy-Garey #399 made application to be accepted into the Pension Fund on April 7, 2014. Portability: (1) Thomas F. Clancy #204 is transferring 2 yrs., 7 months and 14 days from the Carpentersville Police Pension Fund. New pension start date is December 19, 1990. Military Service Buy Back 40 ILCS 5/3-110(b-5): (3) Bernhard M. Bajak #272 made application to transfer 24 months of military service. The new pension start date is March 28, 1997. Thomas F. Clancy#204 made application to transfer 12 months of military service. The new pension start date is December 19, 1989. Mario Elias #213 made application to transfer 24 months of military service. The new pension start date is September 6, 1992. Glenn Theriault made application to transfer 7months and 1 day of military rservice. The new pension start date is June 2, 1994. Miscellaneous: a. Coalition for Qualified Plan Status correspondence. b. Kevin Senne pension start date. c. Subpoena for all the Fund's recorders/files of Gregory A. Schneider. d. Investment Committee Meeting -- Minutes & Agenda for March 12, 2014. e. Annual Affidavits. 1. Annual Disability Exams. g. IPPAC Spring Conference May 14, 2014 — May 16, 2014 in Rock Island, IL. h. The DOI Annual Report, City of Elgin Audit and Federal Tax Forms are in the process of being completed or have been completed. i. Robert O'Connor's Trustee position is up for appointment from Mayor Kaptain. j. Chris Troiola's Trustee position is up for election, term May 1, 2014-May 1, 2016. k. Miscellaneous correspondences. 1. Lauterbach and Amen monthly reports. 2. Kayne Anderson quarterly reports. Public Comments: Executive Session: Adjournment: r Sincerely, / Thomas J. Q+kigley Clerk r C The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees,April 16, 2014.. Present at the meeting was President James Lamkin, Vice President Robert Christ, Asst. Secretary rJames Roscher, Secretary Chris Troiola, Chief Financial Officer Colleen Lavery, Attorney Cary Collins, and Clerk Thomas Quigley. Absent: Trustee Robert O'Connor Guests: Mike Piotrowski of Marquette Associates, Bill Yocius of Mitchell Vaught and Taylor and Glenn Theriault. The meeting was call to order at 1:33 p.m.by President Lamkin. Minutes of January 15, 2014 meeting were approved on a motion by Christ, seconded by Troiola. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2014 1st Quarter Executive Summary. The Fund has performed reasonably well in the first quarter. Year to date (as of March 31, 2014) the Fund is up 1.2% (Gross of Fees) and 1.1%(Net of Fees). The Fund had investment earnings of$900,000.00 for the quarter. The Fund has an ending market value of$77,349,861.66. The Annualized performance of the Fund over 10 years is 6.7%(Net of Fees). (2) Fixed Income is still challenging but has started in the positive for 2014,up .7%. In 2013 Bonds lost about 2%, the largest loss since 1994. (3) Kayne Anderson Rudnick is on alert for performance. Overall money is coming out of Small-Caps moving forward. Kayne was contacted about lowering fees due to their under-performance; this was brought up in the Investment Committee. Kayne lowered the fee by 10%. This is a start and will be brought back up at a future date by Marquette Associates if Kayne continues to decline. (4) International Stocks are doing better than the U.S. Equity Market. Real Estate should be up 6-9% this year. This quarter U. S. Principle is up 2%net of fees. PIMCO is up 2.3%net of fees for the quarter. One note on PIMCO the CIO left the firm and Bill Gross is the new CIO. This should have minimal negative impact on the firm. (5) Mr. Yocius spoke of how MVT was performing, doing okay in this environment. For the 1st Q the Fund was up.5%%. MVT is staying short on duration of maturity on average 3.13 and less risk. It appears to MVT that the economic growth is starting to slow down with inflation rising and wages flat to lower. In the other fixed income manager, J.P. Morgan was up .8% for the 1st Q. (6) CFO Colleen Lavery went over the 2014 Actuarial Report completed for the City of Elgin by Timothy Sharpe. She stated the following in summary; she had changed the Interest Assumption Rate of Return from 7.75%to a truer Interest Assumption Rate of Return of 7.25%. Several years ago she had dropped the Interest Assumption Rate from 8%to 7.75%. So in 3 years the rate has dropped to a much more honest assumption of returns for the Fund, which means the City will have to increase the amount it contributes to reach 90% funded as required by recent change Illinois Law. The 2014 Tax Levy will be$6,553,044.00. With these new changes the funding rate actually went down to 43.9%,but this should rise in the coming years since the City will be contributing more to make up for prior years of underfunding the Police Pension Fund. The fund has letter going back to 1966 asking the City to raise their contributions up to the appropriate level. Page 1 • A motion to accept Treasurers Report was made by Christ, seconded by Troiola. The motion was approved by droll call vote 4- yes and 0-no. rExpenses: The following expenses were approved as submitted on a motion by Christ, seconded by Troiola. Motion approved by roll call vote 4- yes and 0-no. Buffalo Grove Orthopaedics Santucci-Brady IME $900.00 Cary Collins Inv#6208 Retainer Jan–March 2014 $1,275.00 6257 Admin Services--Scanning $60.00 6258 Admin Services—January 2014 $1,260.00 6261 Schneider Disability $3,782.00 6265 Admin Services—Scanning $312.00 6266 Admin Services—February 2014 $1,260.00 6280 Retainer April–June 2014 $1,275.00 6315 Admin Services March 2014 $1,260.00 6316 Admin Services—Scanning $375.00 Dr. Richard Harris Kaminski Psych Evaluation $490.00 INSPE #44012 Almeida Psych Evaluation $4,140.00 J.P. Morgan 20131231-9174-B 4th Q Fee 2013 $8,817.50 Kayne Anderson Rudnick Inv# 10151054 4th Qtr Fee 2013 $29,441.00 Lauterbach &Amen Inv#4414 Fees December 2013 $1,315.00 Fees January 2014 $1,355.00 5143 Fees February 2014 $1,355.00 5385 Prep for FY 2013 Year End Fees $1,375.00 Marquette Associates Inv # 140322 Consulting Fees March 1, 2014-May 31, 2014 $8,750.00 140323 Fiduciary Services March 1, 2014-May 31, 2014 $2,500.00 r Mitchell,Vaught&Taylor Consulting Fee 1st Q 2014 Jan 1, 2014-March 31,2014 $7,685.00 Tom Quigley Postage reimburse $72.87 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 and 0-no. This is subject to approval by City Treasurer Lavery The Board approved the monthly pension check payouts as noted in meeting packet. Deaths: (2) Shirley Mae Sexton died on January 11, 2014. There are no dependence beneficiaries. Christ made a motion to terminate this pension benefit as required by the State Pension Code, seconded by Troiola. Motion approved. Frederick P. Lugar#19 died on March 25,2014. His wife,Judith A. Lugar has made an application for a Surviving Spousal Benefit Pension. On a motion by Christ to approve the Spousal Benefit Pension in the amount of$53,157.00 annually or$4,429.75 monthly. This motion was seconded by Troiola. Motion approved Page 2 • Retirements: (3) Senior Patrolman Leon P. Filas #146 retired on March 21, 2014. S/P Filas's hire date was January 25, 1988 and has 26 years of creditable service for a pension of 65% of his pensionable rsalary. The 2014 pay scale has not been finalized by the City of Elgin and the PB PA Unit 54; there may be a revision once the contract is completed. His 2013 pensionable salary is as follows; salary $88,464.09, longevity$1,950.00 and 12 holiday days totaling$4,046.51. The grand total of pensionable salary is$94,460.60. The annual pension benefit will be$61,399.44 or$5,116.62 per month. For March 2014 the prorated amount will be$1,650.52. There after the monthly benefit will be$5,116.62. His annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. The pension benefit was calculated by Lauterbach and Amen and approved by CFO Lavery. A motion to accept S/P Leon P. Filas's pension benefit application and benefits was made by Christ, seconded by Troiola. Motion approved. Sgt. Donald W. Thiel# 145 retired on March 28,2014. Sgt. Thiel was hire on January 25, 1986 and has 28 years of creditable service for a pension of 70%of his pensionable salary. This hire date takes into account that Sgt. Thiel transferred 2 years of Military Service into Creditable Service Time under Public Act 096-1260. The 2014 pay scale has not been finalized by the City of Elgin;there may be a revision once the agreement is completed. His 2013 pensionable salary is as follows; salary $101,553.09, longevity$4,062.12 and 10 holiday days totaling$3,787.53. The grand total of pensionable salary is $109,402.74. The annual pension benefit will be$76,581.96 or$6,381.83 per month. His first benefit check will begin on July 1,2014. His annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. The pension benefit was calculated by Lauterbach and Amen and approved by CFO Lavery. A motion to accept Sgt. Donald W. Thiel's pension benefit application and benefits was made by Christ,seconded by Troiola. Motion approved. Patrolman Michael S. Gough #133 retired on April 4, 2014. Patrolman Gough has 30 years, 4 months rk and 7 days of creditable service for a pension of 75%of his pensionable salary. The 2014 pay scale has not been finalized by the City of Elgin and the PB PA Unit 54; there may be a revision once the contract is completed. His 2013 pensionable salary is as follows; salary$85,061.69, longevity 81,950.00 and 12 holiday days totaling$3,894.23. The grand total of pensionable salary is $90,905.92. The annual pension benefit will be$68,179.44 or$5,681.62 per month. For April 2014 the prorated amount will be $4,924.07. There after the monthly benefit will be$5,681.62. His annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. A motion to accept Patrolman Michael S. Gough's pension benefit application and benefits was made by Christ pending finalization of the amounts by Lautcrbach and Amen and approval by CFO Lavery, seconded by Troiola. Motion approved. Disabilities: (2)Officer Gregory A. Schneider#241 had made application for a duty/non duty related disability pension. As of February 12,2014 he has withdrawn his application for a duty/non duty disability with the Board. The Board issued a Decision and Order on this claim and accepted the withdrawal of both disability claims. The Fund will refund his contributions upon written request. Mr. Pete Almeida's Administrative Hearing has been set for May 13,2014 at 11:00 a.m. His attorney Barbara Bell will be notified of the date. Resignations: (1)Norma R. Thiel #263 is resigned on March 28, 2014. Refunds: (1)Norma R. Thiel#263 has made written application for a refund of her contributions in the amount of$105,850.25. She made this written request on February 21, 2014. On a motion by Christ to refund Norma Thiel's contributions in the amount of$105,850.25 and accept the February 21,2014 as rib' the official date of her request, seconded by Troiola. Motion approved on a roll call vote 4-yes and 0-no. Page 3 Terminations: (0) New Hires: (5) Christopher W. Jones#397 made application into the Fund as of J anuary 10,2014. He is a classified as TIER II. Michael J.McCarthy#398; Martin Vega#400 and Latasha Williams made application into the Fund on March 28, 2014. McCarthy is a TIER 1, Vega and Williams are TIER II. Daniel Kazy-Garey#399 made application into the Fund as of April 7, 2014. He is classified as a TIER II. All five of the new members were accepted into the Fund on separate motions by Christ, seconded by Troiola. All 5 motions were approved. Portability of Creditable Service: (1) Thomas F. Clancy#204 is transferring 2 yrs., 7 months and 14 days from the Carpentersville Police Pension Fund. Ofc. Clancy elected to transfer the amount of time that was allowed by Law from just the money that was sent by Carpentersville Police Pension Fund in the amount of$118,683.24. He declined the option to pay the Elgin Police Pension Fund the true costs amount which would have enabled him to transfer his complete time with the Carpentersville Police Pension Fund 3 yrs., 9 months and 21 days. Christ made a motion to accept the transfer of 2 yrs., 7 months and 14 days for the sum of$118,683.24,making Ofc. Clancy's new date of hire December 19, 1990. Seconded by Troiola. Motion approved. Military Service Buy Back 40ILCS5/3-110(b-5) (4) Ofc. Bernard M. Bajak#272 made application to transfer 24 months of military service to creditable service time. He paid the Fund the true cost plus interest as computed by Lauterbach and Amen in the amount of$51,680.91. Christ made a motion to accept the true cost/interest and apply the 24 months to Ofc. Bajak's new hire date,which will be March 28, 1997. Seconded by Troiola. Motion approved. (Pik Ofc. Thomas F. Clancy#204 made application to transfer 12 months of military service time to creditable service time. He paid the Fund the true cost plus interest as computed by Lauterbach and Amen in the amount of$29,091.12. Christ made a motion to accept the true cost/interest and apply the 12 months to Ofc. Clancy's new hire date, which will be December 19, 1989. Seconded by Troiola. Motion approved. Ofc. Mario Elias#213 made application to transfer 24 months of military service to creditable service time. He paid the Fund the true costs and interest as computed by Lauterbach and Amen in the amount of$27,412.93. Christ made a motion to accept the true cost/interest and apply the 24 months to Ofc. Elias's new hire date, which will be September 6, 1992. Seconded by Troiola. Motion approved. Commander Glenn M. Theriault#215 made application to transfer 7 months and 1 day of military service to creditable service time. He has not paid the true cost/interest as of the meeting. He spoke to the Board and explained he was being considered for a Chief of Police position and the time would be needed to get his creditable service time to 20 years. He might have to retire before the next meeting so he was asking the Board to approve the time transfer at this meeting pending the payment. Christ made a motion to apply the 7 months and 1 day to Commander's Theriault's hire date pending the Fund receiving a check in the amount of$17,045.60. If the Fund did not receive the payment of the true cost/interest prior to May 1,2014,this transfer would be automatically voided. Seconded by Troiola. Motion approved. Page 4 • Miscellaneous: a. The Board tabled any action on the Coalition for Qualified Plan Status letter requesting $300.00. (— b. The Board reviewed The Portability paperwork for Sgt. Kevin Senne. There had been a mistake when computing his portability true costs by Tim Sharpe. The date of hire had been translated into 07/01/01 instead of the correct date of hire 01/04/2001. The mistake gives Senne a true cost of $206.90. A motion to change the date of hire to the correct date of January 4, 2001 was made by Christ, seconded by Troiola. Motion approved. A second motion was made by Christ to not collect the true cost amount of$206.90 from Senne since it was the mistake of the Fund. This motion was seconded by Troiola. Motion approved. His Portability date will have to be adjusted to reflect the correct date. c. The Board reviewed the subpoena it received from Mulyk, Laho and Mack regarding the file of Gregory A. Schneider. The subpoena was complied with after Cary Collins reviewed the subpoena. d. The Board reviewed the minutes of the March 12, 2014 Investment Committee. e. The 2014 annual affidavits have been returned. f. The Board reviewed the physician's disability certificates for Kaminski and Santucci-Brady. They are both still disable. Christ made a motion to continue to pay their pension benefits, seconded by Troiola. Motion approved. g. The Board reviewed the IPPAC Spring Conference schedule May 14—May 16, 2014 in Rock Island, IL. It. The Board was made aware of the status of the DOI Annual Report, City of Elgin yearly audit and the Federal Tax Forms filings. The Federal Tax Forms have been filed and the other two are nearly completed. i. Robert O'Connor was re-appointed by Mayor Kaptain as a Trustee for a two year term (May 1, 2014 —May 1, 2016). ri` j. Chris Troiola was re-elected to the Active Trustee position for a two year term (May 1, 2014—May 1,2016). No one ran against him. k. The Board reviewed the records provided by Lauterbach and Amen and Kayne Anderson Rudnick. Public Comments: N/A Executive Session:N/A. With no further business the meeting was adjourned by President Lamkin at 2:30 p.m. on motion by Christ, second by Roscher. Motion approved. The next meeting will be held on July 16, 2014(x, 1:30 p.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sincerely, 4110 Thomas J. Quigley Clerk ' 4 . Board Member Approval .4 ,_ Signature Title Li Page 5 ELGIN POLICE PENSION BOARD IN THE MATTER OF ) THE CLAIM OF: ) ) No. 09 EPPB 901 PETE ALMEIDA ) Applicant ) NOTICE OF HEARING April 17, 2014 Pete Almeida 665 Renee Drive South Elgin, IL 60177 Please be advised that the Elgin Police Pension Board will conduct an administrative hearing on May 13, 2014 at 11:00 AM 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 D By: rprel.„,9 I_ (7 I/ \ Collins & Radja 1710 White Oak Lane Hoffman Estates IL 60192 (847) 519-0010 r r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE June 9, 2014 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on June 11, 2014 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. Discuss any changes to Fund Managers/CFO position. Approve the minutes of the following meeting: March 12, 2014. Set next meeting date. Sincerely, Phomas J. Quigley Clerk C The Minutes of the Hearing on the Possible Restoration to Duty for Pete Almeida of the Elgin Police Pension Fund, Board of Trustees, June 26, 2014. Present at the meeting was President James Lamkin, Vice President Robert Christ, Trustee Robert O'Connor, Asst. Secretary James Roscher, Secretary Chris Troiola, Attorney Cary Collins, and Clerk Thomas Quigley. Absent: None Guests: Michael Gehrman City of Elgin Assistant Corporate Council, The meeting was call to order at 3:06 p.m. by President Lamkin. The meeting was scheduled to start at 3:00 p.m., Mr. Almeida and his counsel Ms. Bell were notified of the Hearing, as well that the Board would be making its foiuial decision on the matter. Neither the Board nor their Attorney Cary Collins had been contacted by either party saying that they would be attending or would not be attending the Hearing today. After considering the exhibits and testimony in this Hearing from the May 13, 2014, the Board was ready to hear any motion(s). Vice President Robert Christ made a motion to terminate Mr. Almeida's non-duty pension benefits as of this date, June 26, 2014. The motion was seconded by Secretary Troiola. The motion was voted on by a roll call vote. President Lamkin voted yea, Vice President Christ voted yea, Secretary Troiola voted yea, Trustee O'Connor voted yea and Asst. Secretary Roscher voted yea. The vote tally was 5-Yea votes and 0-No votes. Motion approved. It should be noted that Ms. Bell joined the Hearing at this point. The time was 3:10 p.m. Vice President Robert Christ made a second motion to execute the written Decision and Order of the Board. The motion was seconded by Secretary Troiola. The motion was voted on by a roll call vote. President Lamkin voted yea, Vice President Christ voted yea, Secretary Troiola voted yea, Trustee O'Connor voted yea and Asst. Secretary Roscher voted yea. The vote tally was 5-Yea votes and 0-No votes. Motion approved. Vice President Christ made a motion to adjourn the Dearing at 3:11 p.m. Asst. Secretary Roscher seconded the motion. The motion was approved by a 5 yea votes and 0-No votes. Meeting adjourned at 3:12 p.m. Sincerely, /-17- 7-.--,,,,,C.a-e-'--(/ Thomas J. Quigley Clerk Board Member Approval: r0 r-421 l5 5-1 . � --�"T`.-},7 Signature Title ELGIN POLICE PENSION BOARD IN THE MATTER OF ) THE CLAIM OF: ) ) No. 09 EPPB 901 PETE ALMEIDA ) Applicant ) NOTICE OF CONTINUATION OF HEARING June 13, 2014 Pete Almeida 665 Renee Drive South Elgin, IL 60177 Please be advised that the Elgin Police Pension Board will conduct an administrative hearing on June 26, 2014 at 3:00 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 P PENSIO BOA By; r Collins & Radja 1710 White Oak Lane Hoffman Estates IL 60192 (847) 519-0010 C ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE July 9, 2014 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday, July 16, 2014 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 16, 2014. r Treasurer's Report: a. 2nd Quarter 2014 Executive Summary. b. Bill Yocius of Mitchell, Vaught and Taylor (MVT) presentation. Expenses: Deaths: (3) Shirley Beverly died June 20, 2014. There are no Surviving Dependent beneficiaries and her spousal benefits will cease per the State Pension Code. Helen E. (Becky) Demmin died on April 24, 2014. There are no Surviving Dependent beneficiaries and her spousal benefits will cease per the State Pension Code. William J. Soulier #113 died on May 20, 2014. Nadine A Soulier has made a Widow's/Spousal Pension Benefit Application. Retirements: (1) Lt. Leigh Rawson #210 will retire on August 1, 2014. Disabilities: (1) Pete Almeida's Administrative Hearing on the possibility of termination of pension benefits was held on May 13, 2014 and June 26, 2014. The Board terminated his non-duty pension benefits on June 26, 2014. Resignations: (1) Officer Erik Ruiz #382 resigned on June 30, 2014. Terminations: (1) Officer David Mathis #396 was terminated by Chief Swoboda on May 2, 2014. Refunds: (2)David Mathis has made a written request for a refund of his pension contributions in the amount of$3,949.41. Eric Ruiz will need to make a written request for his refund of his pension contributions; he has been sent the necessary forms to complete the request. New Hires: (2) Richard L. Free #402 made application to be accepted into the Pension Fund on June 19, 2014. David Lackey #403 made application to be accepted into the Pension Fund on July 7, 2014. Portability: (0) Military Service Buy Back 40 ILCS 5/3-110(b-5): (1) Gary L. Neal Sr. #164 made application to transfer 18 months of military service. The new pension start date is May 13, 1988. Miscellaneous: a. Robert O'Connor has been re-appointed by Mayor Kaptain for a two year term. b. Sean Stegall has appointed Debra Nawrocki the Acting Treasurer of the Fund due to the resignation of CFO Colleen Lavery. c. Should the Board release any Executive Meeting Minutes? d. Scott Davis has sent in an application under section ILCS 40 ILCS 5/3-114.1 from the Illinois Police Pension Code. e. Letters and documentation as to the current date for Officer Kenneth Herman to attain 30 years of creditable service. f. Payment from Officer Kenneth Herman for unpaid retro pay from 2012 in the amount of$26.80. g. Fiduciary Policy Certificate from Alterra American Insurance/Ullico Casualty Group for the period of 11/01/2013- 11/01/2014. h. House Bill 5088 Municipal Compliance Report FY 2013. i. Investment Committee Agenda and Minutes of the June 11, 2014 meeting. j. Letter from Lauterbach advising that Steven Earnhardt is our new client manager. k. Service agreement with Wells Fargo. 1. FOIA request from Zach Cziryak of the Financial News Magazine out of NC. m. IPPAC annual Ethics/Continuing Education Seminar dates and locations. n. Election of Officers from the Board of Trustees. o. Miscellaneous correspondences. 1. Lauterbach and Amen monthly reports. 2. Kayne Anderson quarterly reports. Public Comments: "''' Executive Session: Adjournment: F Sincerely, Thomas J. Quigley Clerk r r The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, July 16, 2014. Present at the meeting was President James Lamkin, Vice President Robert Christ, Trustee Robert O'Connor, Asst. Secretary James Roscher, Acting Treasurer Debra Nawrocki, Attorney Cary Collins, and Clerk Thomas Quigley. Absent: Secretary Chris Troiola Guests: Mike Piotrowski of Marquette Associates, James Nowicki of Mitchell Vaught and Taylor. The meeting was call to order at 1:35 p.m. by President Lamkin. Minutes of April 16, 2014 meeting were approved on a motion by Christ, seconded by Roscher. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2014 2nd Quarter Executive Summary. The Fund has performed well in the second quarter. Year to date (as of June 30, 2014) the Fund is up 4.2% (Gross of Fees) and 4.1% (Net of Fees). The Fund had investment earnings of$2,345,667.42 for the quarter. The Fund has an ending market value of$80,454,924.38, which is a new high mark for the Fund. The Annualized performance of the Fund over 10 years is 7.0% (Net of Fees). GDP was revised down for the 1st Q to a-2.9%. Job and housing appears to be strengthening. The 2nd Q GDP will have an impact on the market once it comes out. If the GDP is up 3%than the market should react very favorably. If it is a lesser amount of improvement than there might be an increase in market volatility. There is a re-balancing from small caps to large cap funds since small caps do not look as advantageous as the large caps. The Fund is well diversified which will help no matter how the markets react. (2) Fixed Income is still challenging but has improved; it is being under-weighted in the Fund at this time. Fixed Income is up overall YTD 1.9%(Gross of Fees). MVT was up 1.4%which below its benchmark,while JP Morgan is up 2.3% which matches its benchmark. (3) Kayne Anderson Rudnick is still on alert for performance. YTD Kayne is up 1.1%(Gross of Fees) down from its benchmark of 3.2%. However for the 2'1Q Kayne was up 3.6%(Gross of Fees) compared to 2.0% for its benchmark. In the future it may be necessary to add an additional Manager or completely switch to a new fund manager unless Kayne's performance improves. (4) International Stocks are doing better than the U.S. Equity Market YTD up 6.5%. In the 2nd Q U. S. Principle is up 3.0%and 5.1%YTD net of fees. PIMCO is up 4.5%net of fees for the quarter and 6.9%YTD. One note on PIMCO the CIO left the firm and Bill Gross is the new CIO. This should have minimal negative impact on the firm but PIMCO is still on alert for this reason. (5) Mr. Nowicki spoke of how MVT was performing, doing well in this environment. For the 2nd Q the Fund was up .9%. MVT is staying short on duration of maturity on average 2.96 and less risk. They believe that bond rates will increase soon. Looking at high grade corporate bonds with higher rates. Fixed income especially MVT in not about risk taking but maintaining capital. A motion to accept Treasurers Report was made by Christ, seconded by Roscher. This motion was approved by a roll call vote 4- yes and 0-no. Page 1 • ExpenSks: The following expenses were approved as submitted on a motion by Christ, seconded by O'Connor. Motion approved by roll call vote 4-yes and 0-no. Kathleen Bono Inv# 6472 Court Report-Almeida $1,006.00 Cary Collins Inv#6324 Admin Services–April 2014 $1,260.00 6325 Admin Services—Scanning April 2014 S279.00 6328 Admin Services—Scanning May 2014 $174.00 6329 Admin Services—May 2014 $1,260.00 6348 Retainer July–Sept 2014 $1,275.00 6383 Almeida Hearing/Services $6,497.32 6384 Admin Services—June 2014 $1,260.00 6385 Admin Services Scanning June 2014 $222.00 Department of Insurance F67092 FY 2015 Compliance Fee $8,000.00 IPPAC 0980 Annual Dues July 1, 1014–June 30, 2015 $500.00 J.P. Morgan 20141231-9174-A 1st Q Fee 2014 $9,467.71 Kayne Anderson Rudnick Inv# 10151055 1st Qtr Fee 2014 $27,941.00 Lauterbach&Amen Inv# 5450 Service Fees March 2014 $1,355.00 5472 Service Fees April 2014 $1,355.00 6071 Service Fees May 2014 $1,355.00 Marquette Associates Inv# 140625 Consulting Fees June 1, 2014-August 31, 2014 $8,750.00 140626 Fiduciary Services June 1, 2014-August 31, 2014 $2,500.00 Mitchell, Vaught&Taylor Consulting Fee 2nd Q 2014 April 1, 2014-June 30, 2014 $7,467.00 Torn Quigley Postage reimburse $32.20 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 4-yes and 0-no. This is subject to approval by Acting City Treasurer Nawrocki. The Board approved the monthly pension check payouts as noted in meeting packet. Deaths: (3) Shirley Beverly died on June 20, 2014. There are no surviving dependent beneficiaries. Christ made a motion to terminate this pension benefit as required by the State Pension Code, seconded by Roscher. Motion approved. Helen E. (Becky) Demmin died on April 24, 2014. There are no surviving dependent beneficiaries. Christ made a motion to terminate this pension benefit as required by the State Pension Code, seconded by Roscher. Motion approved. William J. Soulier#113 died on May 20, 2014. His wife, Nadine A. Soulier has made an application for a Surviving Spousal Benefit Pension. On a motion by Christ to approve the Spousal Benefit Pension in the amount of$47,587.08 annually or$3,965.59 monthly. This motion was seconded by O'Connor. Motion approved Retirements: (1) Lt. Leigh Rawson #210 will retire on August 1, 2014. Lt. Rawson was hire on August 1, 1994 and will have 20 years of creditable service for a pension of 50% of his pensionable salary. The 2014 pay scale has not been finalized by the City of Elgin; there may be a revision once the agreement is completed. His 2013 pensionable salary is as follows; salary$111,962.78, longevity $4,478.51 and 10 holiday days totaling $4,175.77. The grand total of pensionable salary is $120,617.06. The annual pension benefit will be $60,308.52 or$5,025.71 per month. His first benefit check will Page 2 1 begin on August 2,2014. His August 2014 benefit will be prorated for(30) thirty days in the amount of r $4,863.59. His annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. The pension benefit was calculated by Lauterbach and Amen and approved by CFO Lavery. A motion to accept Lt. Leigh M. Rawson's pension benefit application and benefits was made by Roscher, seconded by O'Connor. Motion approved by a roll call vote 4-yes 0-no. Disabilities: (1) Sgt. Pete Almeida had two hearing dates to determine if his disability pension benefits would be terminated. These dates were May 13, 2014 and June 26, 2014. The Board heard the arguments and then issued a Decision and Order on this matter. The Board terminated Almeida's non- duty pension benefits on June 26,2014. His attorney Barbara Bell was given her copy of the Decision and Order and Mr. Almeida was mailed a copy. The Fund will refund his contributions upon written request. Resignations: (1) Officer Erik Ruiz#382 resigned on June 30, 2014. Terminations: (1) Officer David Mathis#396 was terminated by Chief Swoboda on May 1 2014. Refunds: (2) Officer David Mathis#396 made a written application for the refund of his pension contributions on May 10, 2014. His total contributions amount to be refunded is $3,949.41. A Motion was made by Christ to refund his contributions, seconded by O'Connor. Motion approved. Officer Erik Ruiz#382 has not made a written application for a refund of his contributions at this time. However, a motion was made by Christ to refund Ruiz's contributions once he makes application to do so, seconded by Roscher. New Hires: (2)Richard L. Free#402 made application into the Fund as of June 19, 2014. The Board was informed that Ofc. Free has 8 years of prior service at Lakemoor Police Department and has contributed into the Downstate Police Pension Code Article 3 for 3 years (after January 1, 2011). Cary Collins went into the situation occurring at Lakemoor as far as the Village having to pay into the Downstate Pension Fund starting 3 years ago when the Village went over 5,000 residents. However the Village is in dispute as to whether they have to pay the members in the Fund for the time prior to joining the Downstate Pension Code. The Police Officers, Village and DOI are trying to work through the disagreement. There was further discussion about Free's entry date into the Downstate Pension Fund from Lakemoor. After this discussion Christ made a motion to accept Ofc. Free into the Fund as a TIER 1 member as of June 19, 2014. Seconded by O'Connor. Motion approved. David L. Lackey#403 made application into the Fund on July 7, 2014. Christ made a motion to accept Ofc. Lackey into the Fund as a TIER H member. Seconded by O'Connor. Motion approved. Portability of Creditable Service: (0) Military Service Buy Back 40ILCS5/3-110(b-5) (1) Sgt. Gary L. Neal Sr. #164 made application to transfer 18 months of military service to creditable service time. He paid the Fund the true cost plus interest as computed by Lauterbach and Amen in the amount of$45,324.53. Christ made a motion to accept the true cost/interest and apply the 18 months to Sgt. Neal's new hire date, which will be May 13, 1988. Seconded by O'Connor. Motion approved. rMiscellaneous: a. Robert O'Connor was re-appointed by Mayor Kaptain as a Trustee for a two year term (May 1, 2014 —May 1,2016). Page 3 b. CityManager Sean Stegle has appointed Debra Nawrocki as Acting Treasurer for the Police Pension Fund due to the resignation of CFO Colleen Lavery until a new CFO for the City of Elgin is hired. rc. The Board reviewed Executive Meeting Minutes and has decided not to release any of these records. d. Scott Davis had submitted an application under section 40 ILCS 5/3-114.1 from the Illinois Police Pension Code. Scott Davis withdrew that application on July 14, 2014 after receiving a written response from attorney Cary Collins's Office. e. The Board reviewed the findings that Kenneth Herman's last day of work to have 30 years of creditable service as long as there are no further breaks in service going forward from May 3, 2014. Ofc. Herman's last day of employment would be September 11,2014. He has been battling cancer for the past 7 years and has missed 370.85 days of creditable service due to the illness. f. Ofc. Kenneth Herman was found to owe the Fund$26.80 from a retro payment check in 2012. This was discovered during the audit of time for him to reach 30 years of creditable service. This amount was deducted from his payroll check. g. The Board reviewed the Fiduciary Policy Certificate from Alterra American Insurance/Ullico Casualty Group. The policy covers 11/01/2013 — 11/01/2014. h. The Board reviewed the House Bill 5088 Municipal Compliance Report that was forwarded to the City of Elgin. L The Board reviewed the minutes of the June 11, 2014 Investment Committee. j. The Board was advised by Lauterbach and Amen that Steve Earnhardt is the new client manager for the Fund. k. The Board reviewed the service agreement with Wells Fargo that was signed by CFO Colleen Lavery. 1. The FOIA request by Zach Cziuyak of the Financial News Magazine out of North Carolina was reviewed by the Board. It had already been complied with as required by State Law. in. The Board was given the next training dates options for Ethics and Continuing Education Seminars. rn. The Board of Trustees held elections for all the Officers Positions. Roscher made a motion to keep the current slate of Officers the same for the coming one year period. This was seconded by Christ. The motion was approved. The following Trustees will hold these Officer's positions: President--James Lamkin; Vice President--Robert Christ; Secretary--Chris Troiola; Asst. Secretary-- James Roschcr; Trustee--Robert O'Connor. o. The Board reviewed the records provided by Lauterbach and Amen and Kayne Anderson Rudnick. Public Comments: N/A Executive Session: N/A. With no further business the meeting was adjourned by President Lamkin at 2:18 p.m. on motion by Christ, second by Roscher. Motion approved. The next meeting will be held on October 15, 2014 cad 1:30 p.m. The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. i Si Thomas J.'Qu ey, Clerk � / ; Board Member Approval: r � 6/(i/to SaA.1 Signature Title ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE October 7, 2014 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday, October 15, 2014 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 June 26, 2014 and July 16, 2014. Treasurer's Report: a. 3rd Quarter 2014 Executive Summary. b. PIMCO c. Bill Yocius of Mitchell, Vaught and Taylor(MVT) presentation. Expenses: Deaths: (1) Chief Anders (James) C. Hansen died August 10, 2014. There is no surviving spouse or dependent beneficiaries, as a result benefits will cease per the State Pension Code. Retirements: (3) Officer Kenneth M. Herman #132 retired on September 19, 2014. Payment received from Officer Kenneth Herman for unpaid sick hours to complete 30 years of creditable service. He bought back 42.23 sick hours at a total cost of$169.76. Senior Patrolman Ronald A. Reiter#131 retired on September 21, 2014. Officer Jennifer L. Ahrens retired on October 4, 2014. Disabilities: (1) Pete Almeida filed a Complaint for Administrative Review with the Circuit Court of the 16th judicial Circuit in Kane County On August 18, 2014. Terminations: (1) Officer Jason A. Lentz #249 was terminated by Chief Swoboda on September 29, 2014. Resignations: (1) Officer Latasha Williams #400 resigned on September 5, 2014. Refunds: (2) Latasha Williams has made a written request for a refund of her pension contributions in the amount of$2,823.04. Erik Ruiz has made a written request for a refund of his pension contributions in the amount of$15,669.68. New Hires: (0) Portability: (1) Officer Michael McCarthy#398 transferring 11 years, 2 months & 26 days from West Dundee Police Pension Fund, who transferred $189,900.00. Military Service Buy Back 40 ILCS 5/3-110(b-5): (1) Joseph J. Sheehan #260 made application to transfer 7 months of military service. He paid $8,624.48 to the Fund. The new pension start date is November 1, 1997. Miscellaneous: a. Fiduciary Liability Insurance Policy for the Board and pay the invoice of$9,377.00. b. Sgt. Kevin Senne corrected start date of June 11, 1998 compared to July 11, 1999 c. Department Of Insurance Annual Report for FY 2013. d. IPPAC Membership Renewal Forms and Training information. e. Investment Committee Meeting Agenda and Minutes of September 17, 2014. f. Annual Disability Exams scheduled for Bahe and Santucci-Brady. g. Correspondences from Marquette Associates, President Lamkin to Wells Fargo V/P Larry Scinto about transferring $900,000.00. h. Letter from Marquette Associates informing the Board Jose Sanchez replaced Luke Meagher as our analyst. i. Clerk's pay increase. j. Look into IPads for the Board. k. Add Debbie Nawrocki to Investment Committee. 1. 2015 quarterly meeting dates and times. m.Miscellaneous correspondences. 1. Kayne Anderson quarterly reports. 2. Lauterbach and Amen monthly reports. Public Comments: Executive Session: Adjournment: Sincerelyji7K-� Thomas J. Quigley Clerk The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, October 15, 2014. Present at the meeting was President James Lamkin, Vice President Robert Christ,Trustee Robert O'Connor,Asst. Secretary James Roscher,Acting Treasurer Debra Nawrocki, Attorney Thomas Radja, and Clerk Thomas Quigley. Absent: Secretary Chris Troiola,Attorney Cary Collins Guests: Mike Piotrowski of Marquette Associates,Bill Yocius of Mitchell Vaught and Taylor. The meeting was call to order at 1:30 p.m. by President Lamkin. Minutes of June 26,2014 and July 16,2014 meetings were approved on a motion by Christ, seconded by O'Connor. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2014 3rd Quarter Executive Summary. The Fund has performed well Year To Date,however since the beginning of October 2014 the financial markets have been so volatile and has lost 4 or 5 percent. Year to date(as of September 30, 2014)the Fund is up 3.2% (Gross of Fees) and 3.0%(Net of Fees). The Fund had investment earnings of- $758,260.61 for the quarter. The Fund has an ending market value of$81,052,459.45,which is another new high mark for the Fund. The Annualized performance of the Fund over 10 years is 6.8% (Net of Fees). The Fund is well diversified which will help no matter how the markets react. Even though there is job growth,wages are pretty stagnate and GDP is around 3%. Europe seems to be the drag on the market in October 2014 as well as China's growth. It will be a good time to rebalance since the Fund has a amount due to recent deposit by the City of Elgin from property taxes. Marquette Associates Fiduciary Services Committee will be having a meeting next week to discuss re-balancing the Fund. Fixed Income is underweighted,while Real Estate is over weighted. (2) Fixed Income was still pretty flat over the last quarter. Fixed Income is up overall YTD 1.7%(Net of Fees). MVT was up 1.1%which below its benchmark of 1.6%, while JP Morgan is up 2.3% which is higher than its benchmark of 2.2%. (3) Kayne Anderson Rudnick will be taken off Alert Status since their performance has increased. YTD Kayne is down-2.2% (Net of Fees)beating benchmark of-4.4%. However for the 3rd Q Kayne was down-2.8% (Net of Fees) compared to-7.4%for its benchmark. Kayne Anderson does well at not losing as much as others in a down market. (4) International Stocks are down from the 2nd Quarter, down overall-5.2%,while the US Equity Composite is down-0.5%. In the 3rd Q U. S.Principle is up 2.8%and 8.0%YTD net of fees. PIMCO is down-2.9%net of fees for the quarter and up 3.8%YTD. One note,the portfolio management team that handles our Fund is not affected by the current events at PIMCO. With that said PIMCO will still be left on Alert Status. (5) Mr. Yocius spoke of how MVT was performing,it was a pretty flat quarter with a change of -$5,900.00 from the Fund. For the 3rd Q the Fund was down -0.1%net of fees, YTD the fund is up 1.1%well below the benchmark of 1.6%. MVT is starting to reverse course and trying to match the portfolio duration to the target. They are not trying to predict the rate changes as much anymore. Page 1 Mike Piotrowski stated that the portfolio should be performing much better under MVT. MVT has been trailing their benchmark YTD and the Fund needs to see the performance improve. President Lamkin expressed his disappointment that MVT is not performing well and this was becoming an issue that may have to be addressed in the future. V/P Christ echoed the same sentiment as Lamkin. It should be noted MVT has 13.9%of the portfolio in corporate bonds,the benchmark used to measure their performance has zero corporate bonds in it. MVT should be matching if not beating this benchmark quite easily. A motion to accept Treasurers Report was made by Christ, seconded by O'Connor. This motion was approved by a roll call vote 4- yes and 0-no. Expenses: The following expenses were approved as submitted on a motion by Christ, seconded by O'Connor. Motion approved by roll call vote 4- yes and 0-no. Cary Collins Inv#6392 Admin Services–July 2014 $1,260.00 6393 Admin Services—Scanning July 2014 $144.00 6401 Admin Services—August 2014 $1,260.00 6402 Admin Services— Scanning August 2014 $354.00 6414 Retainer October,November&December 2014 $1,275.00 6452 Admin Services—Scanning September 2014 $60.00 6453 Admin Services—September 2014 $1,260.00 INSPE Associates 45150 Almeida Hearing Additional Report $855.00 IPPAC 1054 Training Ethics &Cont. Ed Oct 2014 $900.00 J.P. Morgan 20140630-9174-A 2nd Q Fee 2014 $9,419.11 Kayne Anderson Rudnick Inv# 10151056 2nd Qtr Fee 2014 $24,503.00 10151057 Corrected 2nd Q Fee 2014 (balance carried over) $22,053.00 Lauterbach&Amen Inv#6261 Prep Fee for the FY 2013 DOI Annual Report $1,950.00 6431 Service Fees June 2014 $1,355.00 6869 Service Fees July 2014 $1,355.00 7212 Service Fees August 2014 $1,355.00 Marquette Associates Inv# 140924 Consulting Fees Sept. 1,2014-Nov. 30, 2014 4 $8,750.00 140925 Fiduciary Services Sept.1,2014-Nov. 30,2014 $2,500.00 Mitchell, Vaught&Taylor Consulting Fee 3rd Q 2014 $7,360.00 Tom Quigley Postage reimburse $47.63 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 O'Connor. Motion approved by roll call vote 4-yes and 0-no. This is subject to approval by Acting City Treasurer Nawrocki. The Board approved the monthly pension check payouts as noted above. Deaths: (1) Chief Anders (James) C. Hansen passed away on August 10, 2014. There is no surviving spouse or dependents. Christ made a motion to terminate this pension benefit as required by the State Pension Code, seconded by O'Connor. Motion approved. Retirements: (3) Officer Kenneth M. Herman#132 retired on September 19,2014. Officer Herman was hire on September 6, 1983 and will have 30 years of creditable service for a pension of 75%of his pensionable salary. This includes the time he has lost due to a prolonged battle with cancer where he was out for 370.85 days. He will be short of 30 years of creditable service by 42.23 hrs. He has elected to pay the Fund for those missed sick hours to make them creditable. He presented the check to the Fund in the amount of$169.76. The 2014 pay scale has not been finalized by the City of Elgin;there may be a revision once the agreement is completed. Herman's 2013 pensionable salary is as follows; salary$85,061.69,longevity$1950.00 and 12 holiday days totaling$3,894.23. The grand total of pensionable salary is$90,905.92. The annual pension benefit will be$68,179.44 or$5,681.62 per month. His September 2014 benefit will be prorated for(11) eleven days in the amount of$2,083.26. His annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. The pension benefit was calculated by Lauterbach and Amen and approved by Acting City Treasure Nawrocki. A motion to accept Officer Kenneth M. Herman's pension benefit application and benefits was made by Christ, seconded by O'Connor. Motion approved by a roll call vote 4-yes 0-no. Senior Patrolman Ronald A. Reiter#131 retired on September 20,2014. S/P Reiter was hire on June 27, 1983 and will have over 31 years of creditable service for a pension of 75% of his pensionable salary. The 2014 pay scale has not been finalized by the City of Elgin;there may be a revision once the agreement is completed. His 2013 pensionable salary is as follows; salary$88,464.09, longevity $1950.00 and 12 holiday days totaling$4,046.51. The grand total of pensionable salary is $94,460.60. The annual pension benefit will be$70,845.48 or$5,903.79 per month. His September 2014 benefit will be prorated for(10)ten days in the amount of$1,967.93. His annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. The pension benefit was calculated by Lauterbach and Amen and approved by Acting City Treasure Nawrocki. A motion to accept Senior Patrolman Ronald A. Reiter's pension benefit application and benefits was made by Christ, seconded by O'Connor. Motion approved by a roll call vote 4-yes 0-no. Officer Jennifer L. Ahrens#209 retired on October 4, 2014. Officer Ahrens was hire on September 27, 1987. This includes the Portability transfer of 6 years and 9 months from the Cary Police Pension Fund. She will have 27 years of creditable service for a pension of 67.5% of her pensionable salary. Her 2014 pensionable salary is as follows; salary$87,188.24,longevity is 3% of base salary in the amount of $2,615.67 and 12 holiday days totaling$4,019.19. The grand total of pensionable salary is $93,823.10. The annual pension benefit will be $63,330.59 or$5,277.55 per month. Her October 2014 benefit will be prorated for(27)twenty-seven days in the amount of$4,596.58. Her annual COLA increases will take effect as prescribed by the Illinois Police Pension Code. The pension benefit was calculated by Lauterbach and Amen and approved by Acting City Treasure Nawrocki. A motion to accept Officer Jennifer L. Ahrens's pension benefit application and benefits was made by Christ, seconded by O'Connor. Motion approved by a roll call vote 4-yes 0-no. Disabilities: (1)Pete Almeida filed a Complaint for Administrative Review with the 16th Circuit Court of the Kane County on August 18, 2014. Terminations: (1) Officer Jason Lentz#249 was terminated by Chief Swoboda on September 29,2014. He notified the Fund he will be keeping his contributions in the Fund at this time. Resignations: (1) Officer Latasha Williams#400 resigned on September 5,2014. Refunds: (2) Officer Latasha Williams#400 made a written application for the refund of her pension contributions on September 5,2014. Her total contributions amount to be refunded is $2,823.04. A Motion was made by Christ to refund his contributions, seconded by O'Connor. Motion approved by roll-call vote 4-yea and 0-no. Officer Erik Ruiz#382 has made a written application for a refund of his contributions as of September 12, 2014. The Board at the July 16, 2014 approved a motion to refund Ruiz's contribution amount in the amount of$15,669.68 upon receiving the written request. The Board reviewed the request and by a motion by Christ, seconded by O'Connor approved this transaction on a roll-call vote 4-yea and 0-no. Page 3 New Hires: (0) Portability of Creditable Service: (1) Officer Michael J. McCarthy#398 applied for a Portability transfer from the West Dundee Police Pension Fund of 11 years, 2 months and 26 days. West Dundee transferred$189,900.00 to the Elgin Police Pension Fund. Actuary Tim Sharpe computed that the true cost to McCarthy would be covered by the total transfer from West Dundee Police Pension Fund. A motion to approve the Portability transfer was made by Christ, seconded by O'Connor. Motion approved by a roll-call vote 4-yea and 0-no. Military Service Buy Back 40ILCS5/3-110(b-5) (1)Officer Joseph J. Sheehan#260 made application to transfer 7 months of military service to creditable service time. He paid the Fund the true cost plus interest as computed by Lauterbach and Amen in the amount of$8,624.48. Christ made a motion to accept the true cost/interest and apply the 7 months to Officer Sheehan's new hire date, which will be November 1, 1997. Seconded by O'Connor. Motion approved by roll-call vote 4-yea and 0-no. Miscellaneous: a. The Board reviewed the Ullico/Alterra American Insurance Company Fiduciary Liability Insurance Policy. There was a motion by Christ to accept the policy and to pay the invoice in the amount of $9,377.00. Seconded by O'Connor. Motion approved. b. Sgt. Kevin Senne had his start date changed since there was a clerical error back in 2001. The calculation/payment part of this was completed and approved by the Board at the July 16, 2014 meeting. This meeting item deals with the changing of the start date. Christ made a motion to correct/change Kevin Senne's start date to June 11, 1998, seconded by O'Connor. Motion approved. c. The Board had the opportunity to review the final and accepted FY 2013 Dept. of Insurance Annual Report. d. The Board reviewed IPPAC membership renewal forms and training information. e. The Board reviewed the Investment Committee Agenda and Minutes for the September 17,2014 meeting. f. Annual disability exams have been scheduled for Ryan Bahe and Jill Santucci-Brady through Cary Collins's Office. g. The Board reviewed the letters regarding the transfer of$900,000.00 with Wells Fargo. h. The Board reviewed a letter from Marquette Associates introducing Jose Sanchez as the new analyst for the Fund since Luke Meagher left Marquette. i. The Board reviewed Collins and Radja request for an increase in salary for the Clerk's position. The Board asked questions about the increase in fees. They were shown what another company would charge for the same services that are performed by the clerk. Roscher made a motion to approve the monthly fee of$1,890.00. Seconded by Christ. Motion approved by a roll-call vote 4- yea and 0-no. j. The Board spoke about trying to speak to the City's IT Dept. to try and find out if they had an opinion of whether a tablet or laptop would be best for the Fund to use. The current laptops are starting to not work for a few members. The Board asked Clerk Quigley to speak to Mr. Massey from the City to see what he would recommend to fit the Board's needs and report back to the Board. k. Acting City Treasurer Debbie Nawrocki was added as an Investment Committee Member by President Lamkin. I. The regularly scheduled quarterly meetings of the Board were set as follows; January 21, 2015,April 15,2015,July 15,2015 and October 21,2015, all at 1:30 p.m. m. The Board reviewed the records provided by Lauterbach and Amen and Kayne Anderson Rudnick. Page 4 Public Comments: N/A Executive Session: N/A. With no further business the meeting was adjourned by President Lamkin at 2:06 p.m. on motion by Christ, second by O'Connor. Motion approved. The next meeting will be held on January 21, 2015 (a, 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: a ` 0 r Signature Tie Page 5 • C ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE December 9, 2014 The ELGIN POLICE PENSION FUND,Board of Trustees announces that an Investment Committee will be holding a meeting on December 11, 2014 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. Discuss any changes to Fund Managers/CFO position. Approve the minutes of past meetings if necessary. Set next meeting date. Sincerely, Vic6)+QI`'( Thomas J. Quigley Clerk C Elgin Police Pension Fund 151 Douglas Avenue Elgin, IL 60120 Minutes of the Elgin Police Pension Fund, Investment Committee meeting,held on December 11, 2014. Present at the meeting(tele-conference)were Vice President Robert Christ,Acting Treasurer Debra Nawrocki, Clerk Thomas Quigley and Mike Piotrowski of Marquette Associates. Absent:None. Guests: None. The meeting was call to order at 2:00 p.m. by Vice President Christ. Treasurers Report: Mike Piotrowski went over the November 30, 2014 Flash Report. A copy of this report is attached to the minutes. The Fund is performing very well. It is making money,passing another mile stone with a new all-time high value of$82,694,366.00 as of November 30, 2014. The Fund is up 6.0%YTD net of fees and for a 3 month period it is up 1.0%. The 10 year annualized rate of return is 6.8% beating the Policy Benchmark. The fund should be able to match their benchmark as long as the markets do not bust in December. Fixed income is still under-weight which is good for now. Marquette will work on rebalancing the fund to make sure it complies with the Investment Policy Guidelines and the DOI policy by the end of 2014. The economy is progressing along; U.S. Equities are up 10.7%YTD. International Composites are moving slowly up 0.8%YTD but still beating a negative benchmark of-0.3%. The International market is looking attractive since they have been beaten down over the last year. Marquette will look at this and see if any additional funds should be put into the international market. Inflation is still low and the Fed is looking to keep low interest rates for a long time. The Bond market is still moving forward. They are up .5%in November and about 2.8%YTD. Fixed Income;Mitchell,Vaught and Taylor is up 1.9%YTD well below its benchmark of 2.8% YTD. JP Morgan is up 3.6%YTD above the 3.5%benchmark. Both are net of fees. Again at this meeting both funds are positive but MVT is disappointing,they should be over-performing their benchmark by a lot rather than under-performing. Their benchmark does not have any corporate bonds while they have 14-15%in corporate bonds. MVT have been guessing that the bond rates would rise and have missed their mark terribly. Mike is looking to put MVT on Alert Status if not On Notice Status at the nest meeting. J.P. Morgan has the fund invested in corporate bonds at about 22%. As of the end of November 2014 for the year the difference on the amount of money made for the fund between MVT and JP Morgan is about$275,000.00 in favor of JP Morgan. Small-Caps are rebounding somewhat. , Kayne Anderson is up 5.5%YTD beating their benchmark of 2.0%YTD. Both Vanguards are under-performing their benchmark YTD by a 0.1%. Both are up approximately 13.5%YTD. In Real Estate, Principle US Property was up 9.9%YTD net of fees beating their benchmark of 8.2%YTD. Global Tactical PIMCO was up 3.9%YTD net of fees below their benchmark of 6.5%YTD. Since both of these managers were funded out of the Fixed Income money, this is still a great benefit to the Fund. Acting Treasurer Nawrocki advised that the City of Elgin was looking to put an additional$5 million into the Fund above what the tax levy called for at the December 17,2014 City Council Meeting. 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 2:14pm. Sincerely,/ Thomas J. Quigley Clerk Board Member Approval: i --e" E' 11- is /, Signature Date l