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HomeMy WebLinkAbout2016 Police Pension Fund Agendas and Minutes ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE January 15, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday, January 20, 2016 at 1:30 p.m. Thle 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 21, 2015. Treasurer's Report: a. 4th Quarter 2015 Executive Summary. b. Review Asset Allocation. c. Update on MVT. d. Update on PIMCO. e. Bill Yocius of Mitchell, Vaught and Taylor (MVT) presentation. Expenses: In pension packet. Deaths: (0). Retirements: (0) Disabilities: (2) Pete Almeida: The Board filed an appeal of the Circuit Court ruling with the 2nd Appellate Court and that Court overturned the Circuit Court in favor of the Board. Almeida than appealed that ruling to be heard before the Appellate Court as a whole and that petition was subsequently denied. Officer Lawrence Dickman had his hearing on December 2, 2015. This'was continued so that depositions of doctors and others could be taken. The next hearing date has not been set. Terminations: (0) Resignations: (1) Officer Jason R. Highland #411 resigned on October 30, 2015. Refunds: (1) Gregory A. Schneider has requested a refund in writing. His refund will be $107,799.32. New Hires: (1) Nicholas J. Mondek #420 was hired on December 7, 2015 as a probationary Police Officer. Portability: (0) Military Service Buy Back 40 ILCS 5/3-110(b-5): (0) Miscellaneous: a. The 3% yearly COLA increases for qualified retirees. b. Robert Beeter Update. c. Bahe and Santucci-Brady annual disability exams have been sent out. d. The City sent over a memo clarifying the dates of Jason Lentz's suspension time, since he won his termination appeal. e. Jacqueline Alvarado inquired about paying contributions for time lost due to illness. f. Lauterbach and Amen Participant Board Report. g. FOIA request by Zach Cziryak. h. IPPAC Spring Conference May 18-20, 2016. i. Affidavits and Letters to Pensioners/Spouses and Active Members. ("' j. Should any Executives Session Meeting Minutes be released? k. Miscellaneous correspondences. 1. Kayne Anderson quarterly reports. 2. Lauterbach and Amen monthly reports. Public Comments: Executive Session: October 21, 2015 Executive Session Minutes. Adjournment: Sincerel / Thomas J. Quigley Clerk r The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Truste , January 20, 2016. Present at the meeting was President James Lamkin, Vice President Robert Christ, rustee Robert O'Connor, Asst. Secretary James Roscher, Secretary Chris Troiola, Attorney Cary Collin, and Clerk Thomas Quigley. Absent: CFO/Treasurer Debra Nawrocki. Guests: Mike Piotrowski of Marquette Associates, Bill Yocius and Jim Nowicki of Mitchell Vaught and Taylor. The meeting was call to order at 1:32 p.m.by President Lamkin. Minutes of October 21, 2015 meeting were approved, motion made by Christ, seconded Iy O'Connor. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2015 4th Quarter Executive Summary. The Fund had rough quarter up 2.8%. The financial markets are still volatile. Year to date(as of December 31,2 15)the Fund is up slightly 0.6% (Net of Fees), underperforming the policy benchmark of 0.7%. This is well below the Actuarial Rate of Return of 7.3%. The Fund has an ending market value of$90,6 4,278.00. The Annualized performance of the Fund over 10 years is 6.0%(Net of Fees). The Fund i well diversified probably the best it has been,which will help no matter how the markets r et. There are still problems with the economy. Other unknowns that keep coming up are China, E rope and slow global growth and if the Fed will continue to raise rates and when. The markets in J uary 2016 went down approximately-10%YTD. Even with the small growth, the Fund did add $4,000,000.00 from 2014 yearend total The Marquette Discretionary Service Group believes that now is a good time to invest so e of the cash now, since the market is down. He will go over the recommendations from the Discr tionary Service Group in the Executive Summary in Exhibit 1 on page 3. The Portfolio that Marquet e is recommending is Portfolio C. In their opinion Portfolio C. will put the Fund into a b tter position to increase the value of the Fund in the financial environment that the Fund is operating 'n at present and in the future. Christ made a motion to modify the Asset Allocation Policy and fo Marquette to move toward the Portfolio C option in future purchases, sells and trades of the Fund' assets. Motion seconded by Troiola. Motion approved (2) Fixed Income is up overall YTD 1.2%(Net of Fees)matching the benchmark of 1.2° . For the 4th Q, MVT was down-0.7% which beat its benchmark of-0.8%. MVT is still down YTD ith a 0.7% increase versus the benchmark of 1.2%increase YTD. JP Morgan is down-0.5%wh ch is higher than its benchmark of-0.7% for the 4th Q, JP Morgan beat their YTD benchmark of 1 1%by coming in with an increase of 1.5%. Both MVT and JP Morgan are still on alert status. MV is due to performance issues, they need several quarters of even or positive performance comp red to their benchmark for them to come off alert status. JP Morgan's alert status is for organiza 'onal reasons regarding the top team member leaving. They appear to be performing well but will emain on alert status for now. (3) U.S. Equities as a whole were up 0.7%YTD, tying their benchmark of 0.7%. Kayne nderson Rudnick YTD is up 0.9%(Net of Fees)outperforming the benchmark of-4.4%. Vanguard Instl. Index Fund was even with their benchmark YTD with 1.4% earnings. Vanguard Mi -Caps matched their benchmark of-1.3%YTD. Page 1 (4) International Stocks Composite was down in the 4th Quarter losing-2.8%, but still beating their benchmark of-5.7%. (5) U. S. Principle is up 13.4%YTD net of fees underperforming the benchmark of 14.5%. PIMCO is down-8.7%net of fees for the YTD underperforming the benchmark of-0.5%. PIMCO will still be left on Alert Status. Their performance is not doing well, however it appears that the leadership of the company has stabilized. Will have to see if this can cause a turnaround in the performance. (6) Mr. Yocius and Mr. Nowicki of MVT were at the meeting to discuss MVT performance. Mr. Yocius stated that MVT has the Fund in a less risk/shorter duration formula still. However, tne duration has increased over the past quarter slightly. They are trying to get back to the overall targOt rate of durations as the yields also increase. The economy appears to be slowing through the course of 2015. The current environment is consistent with what has been seen all year so theiraxed strategy will be to continue staying close to the benchmark duration on government debt and s ek yield and i. spread advantages from corporate issued bonds. MVT have added 3 positions as well as selling 3 as shown on page 6 of MVT Executive Summary. A motion to accept Treasurers Report was made by Christ, seconded by Troiola. This 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 #6701 Almeida Appellate brief '$277.87 6702 Dickman Disability Application $5,931.87 6703 Admin Services- October 2015 $1,890.00 6709 Admin Services -November 2015 $1,890.00 6723 Retainer Jan, Feb and March 2016 $1,275.00 6760 Admin Services—Dec 2015 $1,890.00 JP Morgan Inv# 20150930-9174-B July 1,— Sept 30, 2015 $11,938.37 20151231-9174-A Oct 1, - Dec 31, 2015 $11,748.51 Kayne Anderson Inv# 10151062 Fees 3rd Q 2015 $22,039.00 Lauterbach &Amen Inv# 12807 Service Fees— September 2015 $995.00 13325 Service Fees—October 2015 $995.00 13894 Service Fees- November 2015 $995.00 Marquette Associates Inv # 151227 Consulting Fees Dec. 1, 2015 — Feb. 28, 2016 $12,500.00 Mitchell, Vaught and Taylor Fees 4'h Q 2015 $6,909.00 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-yea and 0-no. This is subject to approval by CFO Nawrocki. The Board approved the monthly pension check payouts as noted above. Deaths: (0) Retirements: (0) Page 2 Disabilities: (2) Pete Almeida's Appellate Court appeal to be heard by the entire Appellate Court was denied. He did not pursue an appeal to the Illinois Supreme Court. The Board needs to now recover the money that Judge Ackmann made the Fund pay Mr. Almeida instead of waiting for the Appellate Courts decision. Cary Collins will try to determine the next step to have the money that was paid out to Mr. Almeida repaid to the fund. The Fund could ask the Appellate Court to issue an order or it could use the new Pension Code Law regarding over-payments. It was brought up about trying to use the State of Illinois I-Drop Program to recoup the over-payment. Officer Lawrence J. Dickman #317 has a hearing date December 2, 2015 at 1:30 p.m. at t e Elgin Law Enforcement Facility 151 Douglas Ave. Elgin Illinois. The hearing was continued so tha doctors and others could be deposed. Nothing has been received to date from Dickman's attorney Da Murphy. Terminations: (0) New Hires: (1)Nicholas J. Mondek#420 TIER II was hired on December 7, 2015 as a P obation ary Police Officer. Roscher made a motion to accept Mondek into the Fund, seconded by Troiola. Motion approved. Resignations: (1)Jason R. Highland #411 resigned on October 30, 2015 Refunds: (1)Gregory A. Schneider has requested a refund in writing. His total contributions amount to $107,799.32. Christ made a motion to refund Schneider's contributions in the amount of$107,799.32, seconded by Troiola. Motion approved by roll call vote 5-yess 0-no. Portabilityof Creditable Service: (0) ( ) Military Service Buy Back 401LCS5/3-110(b-5) (0) Miscellaneous: a. The Board reviewed the 3%COLA increases for qualified retirees for 2016. Rosher made a motion to approve the increases as calculated by Lauterbach and Amen, seconded by Troiola. Motion approved by roll call vote 5-yes 0-no. b. The Robert Beeter update was given by Cary Collins. His office has reviewed th City's volumes of files. His office will complete its discovery process and once comple d the Board can schedule a hearing. c. The Board sent out annual disability exam notices to Bahe and Santucci-Brady. I d. The Board reviewed the memo sent over by Ms. Cohen director of Human Resou ces clarifying Jason Lentz's suspension dates since he was reinstated by an arbitrator. He will ve a 6 month non paid suspension from September 30, 2014 through March 29, 2015. He retu ed to work on October 6, 2015 once the arbitration was concluded. Per the arbitrator's decision the period between March 30, 2015 and October 5, 2015 was not considered suspension tim and Lentz received back pay and benefits for that period. e. Jacqueline Alvarado made a written inquiry as to what the cost would be to buy b ck unpaid FMLA time due to an illness from June 4, 2015 to September 7, 2015. The Fina ce Department checked the work schedule and computed that the total unpaid amount was $21,2 0.87. The pension amount (9.91%) owed on that amount equals $2,107.94. She will need t pay this amount in full and then the Board will have to approve the transaction in return f r creditable pension time for that missed period. f. The Board reviewed the Lauterbach and Amen Participant Board Report that wasj in the meeting packet. No action required. Page 3 g. The Board reviewed the FOIA request by Zach Cziryak which was complied with. h. The Board was notified of the upcoming IPPAC Spring Conference May 18—20, 016. i. The Board were advised that the yearly affidavits from the members were sent out and there are still 19 outstanding. The Clerk will send out additional notices. Cary Collins stat that instead of the Board suspending the payments if we cannot get an affidavit returned, that t e Board should just send the retiree or beneficiary a letter saying that the direct deposit has een stopped and that person will have to physically come to the police department to pick up th it check. The Board noted the change in wording. j. The Board did not make any motions to release Executive Session Meeting Minutes. k. The Board reviewed the records provided by Lauterbach and Amen and Kayne Anderson Rudnick. 1. The Board approved the Executive Session Minutes for the October 21, 2015 meeting on motion by Troiola, seconded by Christ. Motion approved. m. Cary Collins had a concern about how some Pension Funds are careless in the wa they process checks and handle them. He brought up Sauk Village and Dixon, where the Treas rer stole money from the fund over a period of time. The bank never checked the signature., it is all automated. Need to be attentive not to put all the money in one place and to make sure two signatures are required on the checks and the Board needs to review them the fund. going out. Now a days with funds having accounting companies doing so much, the fund ma overlook the checking procedures. He feels the Elgin Police Pension Fund has sound procedur-s already in place,with the Board,Treasurer, Clerk, Accountants and the City Finance Depart ent reviewing them. 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 April 20, 2016 A 1:30 p.m.The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sin , ' / 69,1—ey"--- Thomas J. Q igley, Clerk Board Member Approval: /� �� Signature Title Page 4 r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE February 19, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on February 24, 2016 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 and performance. Discuss/recommend any changes to the Funds allocations and re- balance if necessary. Discuss/recommend any changes to Financial Managers. Set next meeting date. Sinc Thomas . Quigley le 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 ebruary 24, 2016. Present at the meeting(tele-conference) were Vice President Robert Christ,T easurer Debra Nawrocki, Clerk Thomas Quigley and Mike Piotrowski of Marquette Associ tes. 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 January 31, 2016 Flash Report. A copy of this report is attached to the minutes. The total market value of the fund is 87,577,434.00 as of January 31, 2016. The Fu d is down -2.9%YTD net of fees and for a 3 month period it is down -4.0%. The 10 year ann alized rate of return is 5.4%outperforming the Policy Benchmark of 5.1%but underperformin the Actuarial Benchmark of 7.8%. Fixed income is still under-weight which is good fo now. U.S. Equities weights are about in line with the Policy. International managers are over- eight slightly. U.S. Equities are down-5.4% YTD,beating the benchmark of-5.5%. Inflation is s ill under control but there are a few things weighing down the market: slowing global growl , China's slowing economy and the U.S. economy. Rebalancing now was a good time since here is cash on hand. Overall on a relative basis, the Fund is doing well, if you look on a long-t rm line. The Fund is well diversified and the allocations make sense looking in the long-term. a bright spot is still Principal US Property. l The Bond Market is up for the YTD at 1.3%also up for the 3 month at 0.9%. Both number are below their bench marks of 1.6%and 1.1%respectively. Mitchell, Vaught&Tayl i r is up 1.3% YTD below its benchmark of 1.6%YTD. JP Morgan is up 1.3% YTD beating the ii enchmark of 1.2%YTD. Both are net of fees. MVT is still on Alert Status for performance. M ke will advise the Board at the April 20, 2016 Quarterly Board Meeting as to how MVT is Ierforming. MVT is still underperforming partly due to the benchmark they requested to be co pared to. That benchmark has no Corporate Bonds. Corporate Bonds have been down so far in 2016. The Fund may have to change the benchmark in the future. V/P Christ said that MVT s ill bothers him with their performance over that last few years when measured against J.P. Morgan. The Board needs to really take a hard look as to whether to keep MVT as a manager at il e next meeting. Mike would like to see more long-term consecutive improvement from t em instead of just a quarter. They are back to the same old style it would appear. Looking past 2 years in the report on page 3 MVT has underperformed their benchmark and J.P. Morgan. JP Morgan has no changes to the performance even with Swanson leaving. It has tdo with the team performance style they use. This is a positive for the Fund and we will see w1iiether they stay on alert status at the April meeting. Kayne Anderson is down -5.6%YTD, beating their benchmark of-8.8%YTD. And over 3 months they are outperforming their benchmark -5.9% versus a-10.6%. Kayne And rson is doing what was expected of them in a tough environment. Both Vanguards are matc ing their benchmark YTD or within a 0.1%, Vanguard Institutional down -5.0% and Vanguar Mid Cap is down -7.4%. Principal US Property was up 0.4%YTD net of fees beating their benchmark of 0.0yo YTD. Global Tactical PIMCO was down -1.4%YTD net of fees underperforming their benchmark of 1.3%YTD. PIMCO is being watched closely by the Marquette Discretionary Committee due to performance concerns and more specifically their non US exposure. International Funds as a whole are underperforming their benchmark YTD. The coosite is down -7.5%YTD compared to the benchmark of-6.8%YTD. DFA and Dodge and Cox are value funds and are negative for that reason. They tend to balance with EuroPacific rowth Fund. 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 Cl rist at 2:20pm. Sincerely, _ a:try Thomas J. Quigley Clerk Board Member Approval: /��%` Signature / DAte ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE April 11, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday,April 20, 2016 at 1:30 p.m. The mee ing will be held at the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin, Illin is in the North Lobby Community Room. Agenda: Call to Order: Minutes of the January 20, 2016. r Treasurer's Report: a. 1st Quarter 2016 Executive Summary. b. Update on JP Morgan. c. Update on MVT. d. Update on PIMCO. e. Bill Yocius of Mitchell, Vaught and Taylor(MVT) presentation. f. Actuarial Report by Debbie Nawrocki. Expenses: In pension packet. Deaths: (0). Retirements: (1) Commander Daniel O'Shea #271 retired on April 8, 2016'L Disabilities: (1) Officer Lawrence Dickman had his hearing on December 2, 2015. The next hearing date has not been set. Terminations: (0) Resignations: (1) Officer Steven T. DePauw #416 resigned on March 8, 2016. '' Refunds: (1) Steven T. DePauw contributed $4,806.09 to the Fund. He has not made a written application for a refund at this time but is expected to. New Hires: (0) Portability: (0) Military Service Buy Back 40 ILCS 5/3-110(b-5): (1) Officer Chad Va,hMastrigt #233 paid $23,285.22 to buy back 2 years of military service and transfer that to creditable service time. -Miscellaneous: a. Daniel Glasby was the only nominated active officer to replace Christopher Troiola as a trustee. He will serve a 2 year term from Mayl, 2016 to April 30, 2018. b. Robert Beeter Update. c. Bahe is still disabled from police service. d. Jacqueline Alvarado has begun to repay her contributions of$2,107.94 due to creditable service time she missed in 2015. e. Is acting position pay pensionable and should contributions be taken out? f. Letter from Kim Almeida's attorney requesting future pension calculations of Pete Almeida. g. Amount of Overpayment to Almeida. h. Pension calculations. i. Investment Committee Agenda and Minutes for the February 24, 1016 meeting. j. Correspondences between CFO Nawrocki and Wells Fargo. k. A memo from Amy Grellner in Finance about the City of Elgin reerence Military Leave pay. 1. FOIA request by Zach Cziryak. m.All Affidavits have been returned. n. 1PPAC Newsletter. o. Miscellaneous correspondences. 1. Kayne Anderson quarterly reports. 2. Lauterbach and Amen monthly reports. Public Comments: Executive Session: Adjournment: Sincer' . , Thomas J. Qui ey Clerk The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees; April 20, 2016. Present at the meeting was President James Lamkin, Vice President Robert Christ,Trustee Robert O'Connor,Asst. Secretary James Roscher, CFO/Treasurer Debra Nawrocki, Attorney Cary Collins, and Clerk Thomas Quigley. Absent: Secretary Chris Troiola. Guests: Mike Piotrowski of Marquette Associates, Bill Yocius and Jim Nowicki of Mitchell Vaught and Taylor, Daniel Glasby. The meeting was call to order at 1:31 p.m. by President Lamkin. Minutes of January 20,2016 meeting were approved,motion made by Christ,seconded by,O'Connor. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2016 1st Quarter Executive Summary. The Fund endured two worlds in the investment markets. In January and February the markets were down 2.7%and March was up 4.4%. Over all for the I Q the Fund was up 1.70%(Net of Fees)beating the benchmark of 1.60%. The financial markets are still volatile. This is slightly below the Actuarial Rate of Return of 1.8%. The Fund has an ending market value of$91,295,487.00. The Annualized performances,of the Fund over 10 years is 5.7%(Net of Fees). The Fund is well diversified probably the best it has been, which will help no matter how the markets react. There are still problems with the world economy. The Federal Reserve may hike rates in 2016 again close to December 2016. They will not get the 4 rate hikes that they had predicted as it looks now. Even with the small growth, the Fund did add $643,341.97 in the 1"Q. (2) Fixcd Income is up overall YTD 2.1%(Net of Fees)below the benchmark of 2.3%. For the 1st Q, MVT was up 1.8%which is below its benchmark of 2.3%. JP Morgan is up 2.3% which is matching its benchmark of 2.3%for the 1st Q. MVT will remain on alert status due to performance issues. They need several quarters of even or positive performance compared to their benchmark for them to come off alert status. (3) JP Morgan had several more Portfolio Managers leave. Marquette did an onsite visit and spoke to the team members. Marquette's findings were discussed and they were included in the March 31, 2016 Executive Summary. The recommendation from Marquette to the Board was to glace JP Morgan status as On Notice due to Professional Turnover with a 6 month window. Marquette will continue to monitor this monthly if not sooner. (4) U.S. Equities as a whole were up 2.1%YTD,beating their benchmark of 1.2%. Kayne Anderson Rudnick YTD is up 3.5%(Net of Fees)outperforming the benchmark of-1.5%. Vanguard Instl. Index Fund was even with their benchmark YTD with 1.3%earnings. Vanguard Mid-Caps matched their benchmark of 1.2% YTD. (5) International Stocks Composite was down in the 1st Quarter losing-2.1%, underperforming their benchmark of-0.4%. Both Dodge and Cox and EuroPacific Funds were off substantially. Page 1 (6) U. S. Principle is up 1.8%YTD net of fees underperforming the benchmark of 2.0%. P1MCO is up 5.2%net of fees for the YTD outperforming the benchmark of 3.6%. Their performance has improved and appears to have stabilized. PIMCO will be moved back to In Compliance status. (7) Mr. Yocius and Mr.Nowicki of MVT were at the meeting to discuss MVT performance. Mr. Yocius stated that MVT has the Fund in a less risk/shorter duration formula still. The Fund is still short of the target duration,but they are looking at extending corporate durations to get to the target. Bonds did well up 1.83%. The 10 year rate hit a low of 1.70%this quarter. The Federal Reserve looks poised to only raise rates one time in 2016. (8) CFO Debbie Nawrocki spoke about the 2016 Actuarial Valuation Report. The funded level dropped to 42.3%. This was due to several factors,one being the rate of returns on investment for 2015 being only.5%. The other was a change in the Mortality Rate. This is the second mortality rate change in several years. It is part of the computation as to the amount the Fund is funded or unfunded. It shows that some beneficiaries are or will live to be 119 years of age. These two areas accounted for an increase in the Tax Levy equal to approximately$1,000,000.00. Hopefully this will,be the last Mortality Rate change for a while,which should mean that the Tax Levy will not be such a drastic increase in the coming years. Christ made a motion to accept the City of Elgin's Tax Levy computations at$8,891,497.00. this was seconded by O'Connor,motion approved 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. Buffalo Grove Ortho Bahe annual exam $1,200.00 Kathleen Bono Inv# 7038 Dickman Hearing Court Reporter $1,034.95 Cary Collins Inv# Admin Services—January 2016 $i11,890.00 Admin Services—February 2016 $1,890.00 Admin Services—March 2016 $1,890.00 6790 Retainer April, May, June 2016 $1,275.00 Kayne Anderson Inv# 10151063 Fees 4th Q 2015 $23,114.00 Lauterbach&Amen Inv# 14670 Service Fees—January 2016 $1,035.00 14915 2015 IRS 1099 prep $730.00 15226 Service Fees—February 2016 $1,035.00 Marquette Associates Inv# 160326 Consulting Fees Mar. 1, 2015 —June 30, 2016 $12,500.00 Thomas Quigley Postage $42.88 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-yea and 0-no. This is subject to approval by CFO Nawrocki. The Board approved the monthly pension check payouts as noted above. Deaths: (0) r Page 2 Retirements: (I) Commander Daniel G. O'Shea#271 retired on April 8, 2016. His pension r^ calculations were not completed before the meeting and this item was tabled for calculations. Disabilities: (2) Pete Almeida's overpayment was discussed. He owes the Fund $57,625.74. Cary Collins's office will look into the matter of getting a repayment order and possibly speaking to Mr. Almeida or his counsel. Officer Lawrence J. Dickman #317 The December 2, 2015 hearing was continued so that dbetors and others could be deposed. No dates have been set and no additional records have been received. To make a final decision the Board would need more information, Cary Collin's office will send a letter to Dickman's attorney Mr. Murphy to see what he wants to do. Terminations: (0) New Hires: (0) Resignations: (1)Steven T. DePauw #416 resigned on March 8, 2016. Refunds: (1) Steven T. DePauw#416 contributed$4,806.09. He has been sent his refund application but it has not been returned the paperwork. Portability of Creditable Service: (0) Military Service Buy Back Public Act 096-1260 40ILCS5/3-110(b-5) (1)Officer Chad !VanMastrigt r #233 asked the Fund to compute the cost of purchasing 2 years of creditable service for hi51,military service time under this Act. Lauterbach computed the amount he would owe being$23,285.22 for those two years of creditable service. Officer VanMastrigt provided a check in the amount of$23,285.22. Christ made a motion to approve the transfer of 2 creditable years of service for his military time. This was seconded by O'Connor. Motion approved. New start date will be March 11. 1994. Miscellaneous: a. Daniel Glasby was nominated for the active two year term covering May 1, 2016 April 30, 2018. No one ran against him. b. The Robert Beeter update was given by Cary Collins. His office has reviewed the City's volumes of files. His office will be completing a report for the Board's review. The Board will either decide to have a hearing or can make a determination on the report contents. e. Ryan Bahe is still certified as disabled by Dr. Stamelos. d. Jacqueline Alvarado has begun to pay her contributions of$2,107.94 that were not paid during FMLA time missed in 2015. Once it is paid, the Board will move to accept payment for the time. e. The Board went over the issue of whether an Acting position is pensionable and shpuld contributions be taken out. This came about when it was discovered that Chad VarlMastrigt was an acting Sgt. for several months. Payroll took out pension contributions from the acting pay which is not pensionable under the Pension Code. The Board will refund his portidn of the contribution taken in error. f. The Board received a letter from Kim Almeida's attorney Ms. Elizabeth Dalton requesting to know what will be the projected amount of Pete Almeida's pension benefit at age 60. The Board will send a copy of the calculations to the attorney once they are approved. Page 3 g. The Board reviewed the amount Pete Almeida was overpaid from June 26. 2014 through October 2015. This was$57,625.74. Cary Collins's office will review the options the Board has to recoup the overpayments and notify the Board. b. The Board did review the calculations from Lauterbach and Amen for Almeida's pension benefit once he attains age 60. A motion was made by Christ to approve this pension benefit pending any repayment decision by the Board. Almeida will receive at age 60 on 10/03/2024 a prorated amount of$3,205.98. On 11/01/2024 his pension benefit will go to$3,427.08 monthly and then the yearly COLA increases will take effect. The motion was seconded Roscher. Motion approved. i. The Board reviewed the Agenda and Minutes of the Investment Committee from the February 24,2016 meeting. j. The Board reviewed the correspondences from CFO Nawrocki and Wells Fargo. k. The Board reviewed the correspondence from Amy Grellner of the City of Elgin Finance Department about military leave pay. In the past the City had paid the full salary to the employee even though the employee once reactivated would receive military pay. The City new wants to pay the annual salary but take an offset for the amount the employee gets from the Military. The pension would be taken out of the amount minus the offset. This could affect the contribution amount that an officer would pay. The Board will take a look at this matter when it,occurs. But the current feeling is that the officer should not be penalized for serving their country. I. The Board reviewed the FOIA request by Zach Cziryak which was complied with. in. All affidavits have been returned. n. The Board reviewed a newsletter from IPPAC. 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 2:25 p.m. on Motion by Christ, second by Roscher. Motion approved. The next meeting will be held on July 20, 2016 (a�, 1:30 p.m.The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Sine y, Thomas J. Quigley, Clerk Board Member Approval: "" t37 /6. Signature Title r Page 4 ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE June 16, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees announc s that an Investment Committee will be holding a meeting on June 21, 201 at 2:00 p.m. The meeting will be held at City Treasurer's Office 150 exter Court Elgin, IL 60120 Agenda: Tele-conference with Marquette Associates. Discuss the Funds current financial status and performance. Discuss/recommend any changes to the Funds allocations and re- balance if necessary. Discuss/recommend any changes to Financial Managers. Set next meeting date. Sincerely, Al 0 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 June 21, 2016. Present at the meeting(tele-conference) were Vice President Robert Christ,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 May 31, 2016 Flash Report. A copy of this report is attached to the minutes. The total market value of the fund is 92,363,624.00 as of May 31, 2016. The Fund is up 3.4% YTD net of fees beating the benchmark of 2.7%and for a 3 month period it is up 6.3%. The 10 year annualized rate of return is 6.0%outperforming the Policy Benchmark of 5.7%but underperforming the Actuarial Benchmark of 7.8%. Fixed income is still under-weight which is good for now. U.S. Equities are over-weighted a little. International managers are over- weighted slightly. U.S. Equities are up 4.5%YTD,beating the benchmark of 3.7%. Inflation is still under control but there are a few things weighing down the market: slowing global growth.China's slowing economy,U.K. voting this week to leave the E.U. and the U.S. economy. The Federal Reserve will be lucky to raise rates one more time in 2016. Rebalancing now was a good time, $1.4 million from Kayne Anderson to Vanguard Mid Cap. Overall on a relative basis,the Fund is still doing well,if you look on a long-term line. The Fund is well diversified and the allc}cations make sense looking in the long-term. The bright spot is still Principal US Property and PIMCO has improved. The Bond Market is up for the YTD at 2.1%matching the benchmark. Mitchell,Vaught& Taylor is up 1.7%YTD below its benchmark of 2.1%YTD. JP Morgan is up 2.4%YTD below the benchmark of 2.6%YTD. Both are net of fees. MVT is still on Alert Status for performance. JP Morgan is On Notice Status due to performance concerns. But they seem to be holding steady, down just a little. They have not lost anymore personnel. They will still be Monitored. There is about$2 million in cash that will probably going into fixed income. This is done with a little reservation since both fixed income managers are not in compliance. But the Fund needs to rebalance and the Discretionary Team will make a determination after a full review. Some of the cash may go into another fund also since fixed income will have some difficult times ahead to make money. MVT will still be struggling to meet their benchmark due to still short durations. Kayne Anderson is up 7.9%YTD, beating their benchmark of 2.3%YTD. And over 3 months they are underperforming their benchmark 11.5%versus a 12.1%. Kayne Anderson is doing what was expected of them in a tough environment. Both Vanguards are matching their benchmark YTD,Vanguard Institutional up 3.6%and Vanguard Mid Cap is up 3.6%. Principal US Property was up 3.2%YTD net of fees beating their benchmark of 2.0%YTD. Global Tactical PIMCO was up 6.0% YTD net of fees underperforming their benchmark of 3.3% YTD. International Funds as a whole are underperforming their benchmark YTD. The composite is up 0.1%YTD compared to the benchmark of 0.5%YTD. All are below their benchmarks YTD. The next meeting date for the Committee will be set after the regular quarterly meeting(unless a Special Meeting is needed. With no further business to discuss, the meeting was adjourned by Vice President Christ at 2:17pm. Sincerely, Z-1C14A6)'‘4- Thomas J. Quigley Clerk Board Member Approval: f2 �j r"—'1 h 7 /C, Signature Date r r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE July 14, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees will be holing a regular quarterly meeting on Wednesday, July 20, 2016 at 1:30 p.m. The meet g will be held at the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin, Illin is in the North Lobby Community Room. Agenda: Call to Order: Minutes of the April 20, 2016. r Treasurer's Report: a. 2nd Quarter 2016 Executive Summary. b. Update on JP Morgan. c. Update on MVT. d. Bill Yocius of Mitchell, Vaught and Taylor(MVT) presentation. Expenses: In pension packet. Deaths: (0). Retirements: (3) Commander Daniel O'Shea #271 retired on April 8, 2016. S/P Brian Gorcowski #173 retired on April 30, 2016. Officer Raymond Bennett #234 retired on July 16, 2016. Disabilities: (2) Officer Lawrence Dickman had his hearing on December 2, 2015. The next hearing date has not been set. Officer Neil Rosenston has made application for a Non-Duty Disability. The Fund is still in the process of getting doctor reports. No date has been let for a hearing date. Terminations: (0) r Resignations: (0) Refunds: (1) Steven T. DePauw contributed $4,806.09 to the Fund. He has made a written application for a refund. New Hires: (3) Officer Joseph M. Guikema #121 was hired as a Probationary Police Officer on May 2, 2016. Officer Sean J. Callahan #422 was hired as a Probationary Police Officer on May 31, 2016. Officer Christopher C. Hall #424 was hired as a Probationary Police Officer on June 15, 2016. Portability: (0) Military Service Buy Back 40 ILCS 5/3-110(b-5): (0) Miscellaneous: a. Trustee Robert O'Connor was re-appointed by Mayor Kaptain on April 20, 2016. He will serve a 2 year term from Mayl, 2016 to April 30, 2018. b. Robert Beeter Update. c. Correspondences from Marquette, CFO Debra Nawrocki, Wells Fargo and JP Morgan concerning rebalancing the Fund. d. Update on Almeida overpayment. e. Repayment of Chad VanMastrigt Acting Sergeant pay. f. Investment Committee Agenda and Minutes for the June 21, 2016 meeting. g. DOI Annual Report Certification Form signed and returned. h. QILDRO for Richard and Jamie Ciganek. i. Lauterbach and Amen Pay2Day Invoice Payment Program. j. Should the Board release any prior Executive Session Minutes? k. Election of Officers from the Board of Trustees. 1. Miscellaneous correspondences. 1. Kayne Anderson quarterly reports. 2. Lauterbach and Amen monthly reports. Public Comments: Executive Session: Adjournment: • Sincerely, Thomas J. Quigley Clerk The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees,July 20, /w 2016. Present at the meeting was President James Lamkin, Vice President Robert Christ,Trustee Robert 4 O'Connor,Asst. Secretary James Roscher, Trustee Daniel Glasby, CFO/Treasurer Debra Nawroeki, Attorney Cary Collins, and Clerk Thomas Quigley. Absent: Guests: Mike Piotrowski of Marquette Associates, Bill Yocius and Jim Nowicki of Mitchell Vaught and Taylor. The meeting was call to order at 1:30 p.m. by President Lamkin. Minutes of April 20, 2016 meeting were approved,motion made by Christ, seconded by O'Connor. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2016 2nd Quarter Executive Summary. Over all for the 2nd Q the Fund was up 3.40%(Net of Fees)beating the benchmark of 3.20%. This is slightly below the Actuarial Rate of Return of 3.60%. The financial markets are still volatile. The Fund has an ending market value of$94,355,370.00. The Annualized performance of the Fund over 10 year is 6.00% (Net of Fees). The Fund is well diversified probably the best it has been,which will help no matter how the markets react. There are still problems with the world economy. The Federal Reserve may hike rates in 2016 again close to December 2016. Great Britain did vote to leave the European Union,sending the markets into turmoil for a few days. But the stock market recovered l to reach new O highs in recent weeks. The Fund did add just under$3 million for the 2nd Q,of which approximately $1.5 million was from investments. A side note, as of July 20, 2016 a snapshot of the Fund's value was around$97.7 million,the Fund was having a vibrant July. The Fund rebalanced on,July 11, 2016 since the Fund had cash on hand due to Tax Levy money being received recently. There is a flight to quality which did well for bonds. US Treasury Bonds dropped to a record low yield of 1.32%. (2) Fixed Income is up overall YTD 3.40%(Net of Fees)below the benchmark of 3.60%. YTD shows MVT was up 2.80%which is below its benchmark of 3.60%. JP Morgan is up 3.80%which is below its benchmark of 4.10%. MVT will remain on alert status due to performance issues. JP Morgan had three credit analysts leave over the quarter. Marquette has contacted JP Morgan and continues to have conversations with them. The recommendation of Marquette at this tiine,is to leave JP Morgan on"On Notice Status"so that they can review JP Morgan team and performance. (3) U.S.Equities as a whole were up 5.00%YTD,beating their benchmark of 4.00%. Kayne Anderson Rudnick YTD is up 7.80%(Net of Fees)outperforming the benchmark of 2.20%. Vanguard Intl. Index Fund was even with their benchmark YTD with 3.80%earnings. Vanguard Mid-Caps matched their benchmark of 3.50%YTD. (4) International Stocks Composite was down YTD losing-3.80%,underperforming their benchmark of -1.00%. All three funds Dodge and Cox, EuroPacific Funds and DFA were off substantially. (5) Principal U. S. Property is up 4.10%YTD net of fees outperforming the benchmark of 2.0%. PIMCO is up 9.50%net of fees for the YTD outperforming the benchmark of 5.00%. Their performance has improved and appears to have stabilized. (6) Mr.Yocius and Mr.Nowicki of MVT were at the meeting to discuss MVT performances. Mr. Yocius r stated that MVT has the Fund in a less risk/shorter duration formula still,but they are moving toward their target duration slowly. The Fund is still short of the target duration, but they are looking at extending corporate durations to get to the target. He mentioned that some Sovereign Dlebt Bonds are now negative,Germany is one example. (7) Marquette had one recommendation that dealt with EuroPacific Growth Fund. He advised the Board to switch share class for this Fund. This would lower the cost of the fee but would be the exact same product. The Fund would save approximately$15,000.00 a year. Christ made a motion to switch share class regarding Marquette's recommendation, seconded by Roscher. Motion approved. A motion to accept Treasurers Report was made by Christ, seconded by O'Connor. This 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, sedonded by O'Connor. Motion approved by roll call vote 5-yes and 0-no. Cary Collins Admin Services—April 2016 $1,890.00 Admin Services—May 2016 $1,890.00 Admin Services—June 2016 $1,890.00 Inv#6851 Retainer July,August, Sept 2016 $1,275.00 6893 Robert Beeter Investigation $4,237.50 Daniel Glasby Reimbursement for room charge during IPPAC Cony $202.74 State Of Illinois Inv#F92054 FY 2017 Compliance Fee $8,000.00 IPPAC Inv# 1374 16 hrs. of Training at IPPAC Convention $350.00 Inv# 1425 Annual Membership Fee 07/01/2016—06/30/2017 $500.00 JP Morgan Inv#20160331-9174-A Fees 151 Q 2016 $11,538.68 Kayne Anderson Inv# 10151064 Fees 1St Q 2016 $22,443,00 Lauterbach&Amen Inv# 15531 Services for FY 2015 year end paperwork $1,455.00 15649 Service Fees—March 2016 $1,035.00 16038 Service Fees—April 2016 $1,035.00 Marquette Associates Inv# 1606313 Consulting Fees June 1, 2016—Aug. 31,2016 $12,500.00 Mitchell,Vaught&Taylor Fees rd Q 2016 $6,750.00 Thomas Quigley Postage $18.80 There was a motion to approve all trades and transactions of monies since last meeting up tai this meeting as reported. Motion made by Christ,seconded by Roscher. Motion approved by roll call vote 5-yea and 0-no. This is subject to approval by CFO Nawrocki. The Board approved the monthly pension check payouts as noted above. Deaths: (0) Retirements: (3)Commander Daniel G. O'Shea#271 retired on April 8, 2016. Commander O'Shea was hire on October 10, 1989. This includes 9 years,3 month and 29 days of creditable service time he transferred through Portability from Addison Police Pension Fund. He has 26 years of creditable service time for a pension of 65%of his pensionable salary. Commander O'Shea's 2016 pensionable salary is as follows;salary$132,931.14,longevity $5,317.25. The grand total of his pensionable salary is r" $138,248.39. The annual pension benefit will be$89,861.40 or$7,488.45 per month. His November Page 2 2017 benefit will be prorated in the amount of$3,245.00. His annual COLA increases will,take effect ras prescribed by the Illinois Police Pension Code.The pension benefit was calculated by Lauterbach and Amen and approved by CFO Nawrocki. A motion to accept Commander O'Shea's pension'benefit application and benefits was made by Christ, seconded by O'Connor. Motion approved by a roll call vote 5-yes 0-no Senior Patrolman Brian C. Gorcowski # 173 retired on April 30,2016. S/P Gorcowski was hired on July 30, 1990. He has 25 years of creditable service time for a pension of 62.5%of his pensionable salary. S/P Gorcowski's 2016 pensionable salary is as follows; salary 95,266.10, Longevity 2,748.07 and twelve holidays totaling$4,263.66. The grand total of his pensionable salary is$102,277.83. The annual pension benefit will be$63,923.64 or 5,326.97 per month. His May 2018 payment shall beprorated in the amount of 1,546.54. 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 Nawrocki. A motion to accept S/P Gorcowski' s pension benefit application and benefits Was made by Christ,seconded by O'Connor. Motion approved by a roll call vote 5-yes 0-no Detective Raymond E.Bennett#234 retired on July 15,2016. Detective Bennett was hired on April 11, 1988. This includes the transfer of 7 years and 11 months in creditable service time from IMRF. He has 28 years of creditable service time for a pension of 70%of his pensionable salary. Detecth e Bennett's 2016 pensionable salary is as follows; salary 91,602.23, Longevity 2,748.07 and twelve holidays totaling $4,222.69. The grand total of his pensionable salary is$98,572.98. The annual pension benefit will be $69,001.08 or 5,750.09 per month. His July 2016 payment shall be prorated in the amount of 2,967.79. 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 Nawrocki. A motion to raccept Detective Bennett's pension benefit application and benefits was made by Christ, seconded by O'Connor. Motion approved by a roll call vote 5-yes 0-no Disabilities: (2)Officer Lawrence J. Dickman#317,the City of Elgin apparently sent him'toIa doctor for re-evaluation and he has been classified as fit for duty. Mr. Collins sent Mr. Murphy(alis attorney) a letter back in June 2016 and has not received a reply or any further information. This matter is tabled until the Board hears from Mr. Murphy or Officer Dickman. Officer Neil Rosenston has made application for a Non-Duty Disability. He will see the do ctors in late July 2016 and Mr. Collins's office will collect the report and other pertinent information. No date has been set for a hearing. Terminations: (0) Resignations: (0) Refunds: (1)Steven T. DePauw#416 contributed$4,806.09. He has asked for a refund of his contributions in writing. Christ made a motion to refund DePauw's contributions in the amount of $4,806.09. Seconded by O'Connor. Motion approved. Page 3 New Hires:(3)Officer Joseph M. Guikema#421 was hired as a Probationary Police Officer on May 2, r2016. He has made application to be accepted into the Fund as a TIER II member. Officer Sean J. Callahan#422 was hired as a Probationary Police Officer on May 31, 2016. He has made application to be accepted into the Fund as a TIER II member. Officer Christopher C. Hall was hired as a Probationary Police Officer on June 15,2016. He has made application to be accepted into the Fund as TIER II member. All 3 applications to the Fund were approved on a separate motion by Christ and each seconded by O'Connor. All 3 motions were approved. Portability of Creditable Service: (0) Military Service Buy Back Public Act 096-1260 40ILCS5/3-110(b-5)(0) Miscellaneous: a. Trustee Robert O'Connor was re-appointed by Mayor Kaptain on April 20,2016. He will serve a two year term from May 1,2016 to April 30,2018. b. The Robert Beeter update was given by Cary Collins. His office has reviewed the City's volumes of files. He has issued a report to the Board. The Board reviewed the repolt and determined that Robert Beeter was a convicted felon,but the Board could not terminate his retirement pension benefits due to insufficient evidence. The plea agreement that was made in Court covered the time of August 11, 2010 to August 30, 2010. He was on suspension for a portion of this time by the City of Elgin. Also he used his own personal cellphone not City of Elgin Police equipment. The other 15 Identity Theft and 4 Official Misconduct charges were dropped in exchange for the Guilty Plea Agreement to the one count of felony Identity Theft. The Board also approved the Invoice for Collins and Radja in the amount of$4,237.$0 on motion by Christ,seconded by O'Connor. Motion approved. c. The Board reviewed the correspondences from CFO Nawrocki, Marquette,JP Morgan and Wells Fargo. d. Mr. Pete Almeida came to the meeting to ask about how to get information regarding his future amounts of his benefits and to talk about how he owes the Fund regarding overpayment of his disability benefits. He had been trying to talk to the Funds accountants at Lauterbach and Amen. The Fund asked that he address his concerns with the Fund preferably in writing so that they can see what he is asking for. Mr. Almeida asked if he could tape the meeting and if anyone would object. Roscher. and Lamkin said they would not like it tape if he was giving them al choice. Mr. Almeida said it was an open meeting and he could tape it. Lamkin said yes you have that option but if you are asking if we mind than we gave you our opinion, you can tape it if yoU want. Mr. Almeida said he would not tape it,it is unknown if he did or not. He stated that the McHenry County Court had asked for him to produce the amount he will receive in the future or the amount he has contributed. Mr. Collins said that the Boajrd does not know exactly since they have not made a decision as to how to get the overpayment hack from Mr.Almeida. He asked if Mr. Almeida wanted to start paying the approximately$51,000.00 back now and how or do it later. Mr. Almeida said he doesn't believe he owes anything since the Appellate Court just over turned his disability but did not say he had to pay the money back. He stated he may have to go to court to see if any money is owed. Mr. Collins stated that is a way or the Board would have to research their options to see what can be done. Mr. Almeida than said that it was up to the courts to determine if he owes any money. Page 4 As the discussion between both gentlemen became argumentative, President Lamkin reminded both to respect each other. It would be a good idea to put what Mr. Almeida was looking for in writing and send that to Mr. Collins's office so that this item can move forward. Mr, Almeida asked if he would need to get a Court Order form McHenry County. That was up to him to decide how he wanted to put it in writing but it needs to be in writing to see exactly what is being asked for and it needs to come to the Board through Mr. Collins's Office. Both sides thanked each other for their time and Mr. Almeida left. e. CFO Nawrocki is working on this repayment of contributions taken from Acting Sergeant VanMastrigt,as the City began to go through the amount it he was owed it was discovered that Officer VanMastrigt had another error regarding pay,separate from the pension fundi concern. She was asking H/R to look at how they wanted to handle the situation before it went any further. She will get back to the Fund once a decision was made. f. The Board reviewed the Agenda and Minutes of the Investment Committee from the June 21, 2016 meeting. g. The DOI Annual Report and Certificate had to be resent and signed again due to the Dept. of Insurance wanting to separate payments made to David Copher. He is getting a pension and a survivor's pension from his wife Elizabeth Copher who had passed. The item was corrected as requested and the DOI issued another Certificate which was signed and sent to them. h. The Board accepted the Q1LDRO from Richard and Jamie Ciganek from the 16th Circuit Court in Kane County. The Board also received the required $50.00 to process it and will send a letter to the attorney saying the Board accepted the QILDRO and will enforce it. A motion Was made to accept the QILDRO by Christ,seconded by O'Connor. Motion approved. i, The Board and Lauterbach and Amen came to an agreement to institute a Pay2Day Invoice Payment Program. The Fund will set aside$30,000.00 a month instead of the current $10,000.00 to pay invoices and bills. It will be replenished monthly as needed. This will cut down on the need to have the City of Elgin Finance Department shuffle money between accounts. It will be a lot smoother and hopefully less time consuming. A motion was made by Christ to approve the Pay2Day Agreement with Lauterbach and Amen authorizing them to set aside$30,000.00 to pay invoices and bills. Seconded by O'Connor. Motion approved j. The Board is not going to release any of the current Executive Session Minutes. They had released several a few years back. k. The Board of Trustees opened up the meeting to the Election of Officers. The Nominations were as follows after a brief discussion. Mr. O'Connor had said that he felt that the Board should be made up of only police officers even the Mayors choices since he doesn't always know the inside goings on of the Police Department. Mr. Lamkin and Mr. Collins gave their feelings that part of the reason the Mayor has his choices is that they want people outside the department to make judgements without all the personal contact within the department. This Board is rather unique in that it is not just a rubber stamp for or against things that come before the Board,whether disabilities or investments. By having people outside there is another group looking at what comes before the Board so that favoritism and dislikes do not occur. This Board has been able to keep an open mindset and deal with issued based on the facts and past practices. With that said the President Lamkin stated that he is coming upon serving 30 years on the Board and this will be his last term,he would prefer that another board member take the lead as President so that he could support the next President, if questions come up. Page 5 • James Roscher was nominated for President by Christ, seconded by Lamkin. Approved. Robert Christ was nominated for Vice President by Roscher, seconded by O'Connor, Approved. Daniel Glasby was nominated for Secretary by Roscher, seconded by Christ. Approved. Robert O'Connor was nominated for Asst. Secretary by Glasby, seconded by Christ. Approved. James Lamkin was nominated as Trustee by Roscher, seconded by O'Connor. Approved The new FOIA Officer is Daniel Glasby and the new Security Administrator is President Roscher. Each Officers position received 4 yes votes. Each individual Board Member abstained from their specific Officers nomination vote. So each nomination was 4 yes vote and 1 abstaining vote. 1. 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 2:31 p.m. on motion by Christ, second by Roscher. Motion approved. The next meeting will be held on October 19, 2016 (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. ,s uig ey, Clerk Board Member Approval: /'C �——~' '"� / Signature Title Page 6 r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 MEETING NOTICE October 12, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular quarterly meeting on Wednesday, October 19, 2016 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 20, 2016. r Treasurer's Report: a. 3rd Quarter 2016 Executive Summary. b. Update on JP Morgan. c. Update on MVT. d. Bill Yocius of Mitchell, Vaught and Taylor (MVT) presentation. Expenses: In pension packet. Deaths: (0). Retirements: (1) Sgt. Christopher R. Troiola#175 retired on July 2, 2016. Disabilities: (3) Officer Lawrence Dickman hearing is tabled until the Board hears from his attorney or Mr. Dickman. Officer Neil Rosenston has made application for a Non-Duty Disability. A hearing date of October 25, 2016 at 130pm has been set. Officer Allan Holder has applied for a Duty/Non-duty Disability. Terminations: (0) Resignations: (0) C Refunds: (0) • New Hires: (1) Officer Yamil J. Rivera#423 was hired as a Probationary Police Officer on June 15, 2016. r Portability: (1) Miriam Uribe has applied for a Portability of her time from the Hanover Park Police Pension Fund. The calculations have been completed, waiting to see if she decides to proceed with the Portability true cost payment(s). Military Service Buy Back 40 ILCS 5/3-110(b-5): (0) Miscellaneous: a. House Bill 5088. b. Supervisors' use of Compensation time instead of holiday pay. c. Jonathon and Shannon Rustay's QILDRO d. Correspondences from Marquette, CFO Debra Nawrocki, Wells Fargo and JP Morgan concerning rebalancing the Fund. e. Update/Decision on Almeida overpayment. f. Jacqueline Alvarado's repayment of her missed FMLA time 06/04/2015 — 08/25/2015. She repaid the amount of$2,107.94. g. Update on the repayment of Chad VanMastrigt Acting Sergeant pay. h. Refund from IRS for Schneider's 2015 taxes and they were refiled for 2016. i. FOIA request from Zack Cziryak from Financial News. j. BMO Harris Bank signature card update. k. Updated Pension Fund Security Administrator Authorization Form. 1. IPPAC information on Local Government Travel Expense Control Act effective January 1, 2017 and other IPPAC training m. Updated Board Roster. n. 2017 quarterly meeting dates. o. Miscellaneous correspondences. 1. Kayne Anderson quarterly reports. 2. Lauterbach and Amen monthly reports. Public Comments: Executive Session: Adjournment: Sincerely, Thomas J. Quigley Clerk The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund, Board of Trustees, October 19, 2016. Present at the meeting was President James Roscher, Vice President Robert Christ,''Asst. Secretary Robert O'Connor, CFO/Treasurer Debra Nawrocki, Attorney Cary Collins, and Clerk Thomas ( ?uileY. Absent: Secretary Daniel Glasby, Trustee James Lamkin. Guests: Mike Piotrowski of Marquette Associates, Bill Yocius and Jim Nowicki of Mitchell Vaught and Taylor. The meeting was call to order at 1:32 p.m. by President Roscher. Minutes of July 20, 2016 meeting were approved, motion made by Christ, seconded by O'Connor. Motion approved. Treasurer's Report: (1) Mike Piotrowski presented the 2016 3rd Quarter Executive Summary. Over all for the 3rd Q the Fund was up 3.50%(Net of Fees) beating the benchmark of 2.70%. This is above the Actuarial Rate of Return of 1.80%. The financial markets are still volatile, but not as bad as the 2"d Q. The Fund has an ending market value of$99,386,058.00. The Annualized performance of the Fond over 10 years is 6.10%(Net of Fees). The Fund continues to be diversified. There are still problems with the world economy which appears to be slowing since GDP is being lowered around the dobe. The Federal Reserve may hike rates in December 2016. The Board inquired about the effect that the impending lawsuits and Federal action against Wells Fargo for their improper making false accounts for customers might have on them and the Fund, since they are the Custodian of the Fund's money. eillw Mike replied there is no problem since the institutional arm of Wells Fargo handles our money not the one that violated the rules. Marquette will monitor the situation and report to the Board if an unforeseen problem arises. (2) Fixed Income is up overall YTD 3.40% (Net of Fees) above the benchmark of 3.30% YTD shows MVT was up 2.70% which is below its benchmark of 3.30%. JP Morgan is up 3.90%which is below its benchmark of 4.20%. MVT will remain on alert status due to performance issues. JP Morgan had one departure over the quarter. The recommendation of Marquette at this time, is to leave JP Morgan on"On Notice Status" so that they can review JP Morgan team and performance. (3) U.S. Equities as a whole were up 9.20%YTD, beating their benchmark of 8.40%. K4yne Anderson Rudnick YTD is up 11.4%(Net of Fees)just underperforming the benchmark of 11.50%. Vanguard Instl. Index Fund was even with their benchmark YTD with 7.80%earnings. Vanguard Mid-Caps matched their benchmark of 8.90%YTD. (4) International Stocks Composite was up YTD adding 5.60%, underperforming their benchmark of 5.80%. All three funds Dodge and Cox, EuroPacific Funds and DFA were off their benchmark. (5) Principal U. S. Property is up 6.20%YTD net of fees outperforming the benchmark of 3.90%. PIMCO is up 13.70%net of fees for the YTD outperforming the benchmark of 5.60%. r Page 1 (6) Mr. Yocius and Mr. Nowicki of MVT were at the meeting to discuss MVT performance. Mr. Yocius stated that MVT has the Fund in a less risk/shorter duration formula still, but they are moving toward their target duration slowly especially in the Corporate Bond side. The Fund is still short of the rtarget duration by about .70%. The overall bond market showed little movement over during the 3rd Q. Moved up from 1.41%to 1.61%. Christ made a motion to accept MVT Report, seconded by O'Connor. Motion approved. A motion to accept Treasurers Report was made by O'Connor, seconded by Christ. This motion was approved by a roll call vote 3- yes and 0-no. Expenses: The following expenses were approved as submitted on a motion by O'Connor, seconded by Christ. Motion approved by roll call vote 3- yes and 0-no. Cary Collins Admin Services— July 2016 $1,890.00 Admin Services—August 2016 $1,890.00 Admin Services— Sept 2016 $1,890.00 Inv#6914 Retainer Oct. Nov. and Dec 2016 $1,275.00 INSPE Inv#50600 Rosenston IME Dr. Samo $1,950.00 Inv#50762 Rosenston IME Dr. Woodrick $1,680.00 Inv# 50779 Rosenston IME Dr. Esrig $1,246.00 JP Morgan Inv#20160630-9174-A Fees 2nd Q 2016 $11,531.22 Inv #20160930-9174-A Fees 3`d Q 2016 $11,847.43 Kayne Anderson Inv # 10151065 Fees 2nd Q 2016 $22,362.00 Lauterbach&Amen Inv# 17181 Services for FY 2015 year end paperwork $2,050.00 17276 Service Fees—July 2016 $1,035.00 17865 Service Fees—August 2016 $1,035.00 rvlarquette Associates Inv # 1609667 Consulting Fees Sept 1, 2016—Nov. 30, 2016 $12,500.00 Mitchell, Vaught &Taylor Fees ri Q 2016 $6,649.00 Thomas Quigley Postage $9.40 There was a motion to approve all trades and transactions of monies since last meeting up to this meeting as reported. Motion made by O'Connor, seconded by Christ. Motion approved by roll call vote 3-yea and 0-no. This is subject to approval by CFO Nawrocki. The Board approved the monthly pension check payouts as noted above. Deaths: (0) Retirements: (1) Sgt. Christopher R. Troiola#175 retired on July2, 2016. This was tabled until the January 2017 Board meeting to wait for the calculations from Lauterbach. Disabilities: (3)Officer Lawrence J. Dickman#317,the Board has not hear anything further about another hearing date. This is tabled until Mr. Dickman or his attorney contact the Fund. Officer Neil Rosenston#364 has made application for a Non-Duty Disability, the hearing date is scheduled for October 25, 2016 at 1:30 p.m. Officer Allan Holder#147 has made application to the Board for a Duty/Non-Duty Disability. Cary r:oiiins's office will begin getting the reports together and set doctor's appointments. Page 2 Terminations: (0) Resignations: (0) rttefunds: (0) New Hires: (1) Officer Yamil J. Rivera#423 was hired as a Probationary Police Officer on June 15, 2016. He has made application to be accepted into the Fund as a TIER II member. Officer Rivera's application to the Fund were approved on a motion by Christ and each seconded by O'Connor. Motion approved.. Portability of Creditable Service: (1)Officer Miriam Uribe#353 has applied for a Portability of her time from the Hanover Park Police Pension Fund. The calculations have been completed the Board is waiting to see if she decides to proceed with the Portability true cost payments. Military Service Buy Back Public Act 096-1260 401LCS5/3-110(b-5) (0) Miscellaneous: a. The Board reviewed HB 5088 and approved it to be sent to the City. Motion to approve O'Connor, seconded Christ. Motion approved. b. The Board discussed the problem that came up with the Sgt. Troiola pension computation. The City had let supervisors to use holiday time as comp-time. The problem vias that no pension contributions were being taken out of their salary. The Board spoke to Sgt. Troiola who said he does not feel that he should be penalized for something the City allowed them to do. The Board agreed in part. But they know that for Sgt. Troiola to get his holiday part of his pensionable salary, contributions would have to be made. CFO Nawrocki Stated that the City has already stopped this practice once they received the meeting agenda atd this became known. The Pay Plan will be changed in 2017 but payroll has been notified to stop it now. The Board will require Sgt. Troiola to pay back the one year of missing pensioji contributions for holiday pay and there are 4 or 5 other supervisors who are still active that Will have to pay their contributions to cover the last 12 months from July 2, 2016. Finance will compute the amounts and those affected will be notified of the amount they owe to the Fund. The formal vote to accept the payments will occur at the time the Board receives payment., Motion to require repayment for 1 year from July 2, 2016 was made by Christ, seconded by O'Connor. Motion approved. c. Jonathon Rustay's QILDRO was reviewed by the Board. The Board accepted 4nd a letter of acknowledgement will be sent to his attorney. The Fund also received a $50.06 check that will be deposited into the Funds account for processing the QILDRO. Motion to accept the Rustay QILDRO made by Christ, seconded by O'Connor. Motion approved. d. The Board reviewed the correspondences between Marquette, CFO Nawrocki, Wells Fargo and JP Morgan concerning rebalancing the Fund. e. The Board spoke about how to handle Mr. Almeida being over paid. The Boarld will have the attorney look at the best way to get repaid. Cary Collins will bring back information to the January 2017 meeting so the Board can discuss and possibly vote on the matter. r Page 3 • f. Officer Jacqueline Alvarado complete her repayment to the Fund for missed contribution during an FMLA period from June 4, 2015 to August 25, 2015. She repaid the Fund $2,107.94 to cover this time, which will now be considered as paid creditable service time. Motion to approve payment of$2,107.94 to cover the time missed was made by Christ, seconded by O'Connor. Motion approved. g. Chad VanMastrigt had contributions taken out of his check when he was acting sergeant, when they should not have been. He will be repaid $125.90 out of the Funds a4count to settle this matter. Motion to authorize the payment to Senior Patrolman VanMastrigt was made by Christ, seconded by O'Connor. Motion approved by rollcall vote 3-yea and 0-iso. h. The Fund received a check from the IRS to return the Schneider 2015 taxes with-held so that they could be properly filed in 2016. The check for$21,758.74 was turned over to Lauterbach so that the Form 945 could be corrected to be taken out in 20I6 not 2015. This amount was then sent back to the IRS with the proper form. i. The Board reviewed the FOIA request from Zack Cziryak from Financial New to see that it was complied with. j. The Board updated its BMO Harris signature card with the addition of Daniel (lilasby and the deletion Chris Troiola. k. The Board received the updated Security Administrator Authorization form froth President Roscher, to comply with that Act. 1. The Board reviewed the IPPAC information about the Local Government Travel Expenses Control Act, which is effective January 1, 2017. IPPAC is also coming out with updated Rules and Regulation Forms and Record Retention Policy for their members. m. The Board reviewed the updated Board Roster that will be sent out and their bard position. n. The Board came up with the regular quarterly meeting dates for 2017. They will be as follows: January 18, 2017, April 19, 2017, July 19, 2017 and October 18, 2017, The Board will also have a new starting time since there was a conflict involving the board's attorney Cary Collins. The new start time will be 12:30pm for each of those dates. Motion to approve these dates and times as the 2017 regularly scheduled quarterly meeting dates Was made by Christ, seconded by O'Connor. Motion approved. o. The Board reviewed the reports from Kayne Anderson Rudnick and Lauterbach and Amen. Public Comments: N/A Executive Session: N/A With no further business the meeting was adjourned by President Roscher at 2:20 p.m. ori motion by Christ, second by O'Connor. Motion approved. The next meeting will be held on January 18, 2017A 12:30 p.m. (note the earlier time). The meeting location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120. Thomas J. Quigley, Clerk pard Member Approval: / /12s e .ignature Title Page 4 C ELGIN POLICE PENSION BOARD IN THE DETERMINATION ) OF DISABILITY: ) ) No. 16 EPPB 1601 NEIL ROSENSTON, ) Applicant. ) NOTICE OF HEARING October 3, 2016 Neil Rosenston c/o Foote, Mielke, Chavez &O'Neil, LLC Timothy O'Neil 10 West State Street Suite 300 Geneva IL 60134 Please be advised that the Elgin Police Pension Board will conduct an administrative hearing on October 25, 2016 at 1:30 PM. The hearing wild take place at 151 Douglas Street, Elgin, IL regarding the Determination of Disability. That the applicant may be represented by legal counsel and may provide testimony and evidence in support of his position on this matter to the Elgin Police Pension Board. That the hearing is being conducted under the authority granted the Elgin police Pension Fund under Chapter 40 Act 5 Section 3 of the Illinois revised Statutes. Elgin Police Pe 'on Board ames Roscher, President Elgin Police Pension Fund 151 Douglas Street Elgin, IL 60120 r r ELGIN POLICE PENSION FUND 151 Douglas Ave Elgin, IL 60120 INVESTMENT COMMITTEE MEETING NOTICE December 1, 2016 The ELGIN POLICE PENSION FUND, Board of Trustees announces that an Investment Committee will be holding a meeting on December 13, 2016 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 and performance. Discuss/recommend any changes to the Funds allocations and re- balance if necessary. Discuss/recommend any changes to Financial Managers. Set next meeting date. Sincerely, fr 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',December 13,2016. Present at the meeting(tele-conference) were Vice President Robert Christ, 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, 2016 Flash Report. A copy of this report is attached to the minutes. The total market value of the fund is 99,880,418.00 as of November 30, 2016. The Fund is up 7.4%YTD net of fees beating the benchmark of 5.9% and the Actuarial Rate of 6.6%. For the 3 month period the Fund is up 0.8%. The 10 year annualized rate of return is 5.7% oktperforming the Policy Benchmark of 5.2%but underperforming the Actuarial Benchmark of 7.'7%. Fixed r income is still under-weight which is good for now. U.S. Equities are over-weighted. International managers are over-weighted slightly. These will be re-balanced by the end of 2016 so that the Fund will be incompliance with State Law and the Investment Policy Giidelines. Marquette Discretionary Team will be meeting tomorrow to get this re-balancing done. To accomplish this re-balancing some U.S. Equities will have to be sold. It is a good time to take some money off the earnings. Mike commented on the December 2016 month, so far and it is moving forward w'th the Trump rally in stocks. The Fund is currently over the milestone of$100,000,000.00 for the first time. The Fund is up YTD about 9.0% through December 13, 2016. Looking to finish strong for 2016. U.S. Equities are up 12.0%YTD,beating the benchmark of 11.1%. Inflation is under control and the unemployment figures are low. The Federal Reserve will likely be raising interest rates at its December 2016 meeting tomorrow. The Fund is well diversified and the allocations make sense looking in the long-term. All sectors of the Fund are performing well. Fixed income is still difficult as interest rates rise. But YTD Fixed Income is up 15%beating their benchmark of 1.1%. This is the environment MVT was looking for with their short durations so they will hopefully take advantage of this. Mitchell, Vaught & Taylor is up 1.0% YTD below its benchmark of 1.1% YTD. JP Morgan is up 1.9%YTD below the benchmark of 2.0%YTD. Both are net of fees. MVT is still on Alert Status for performance. JP Morgan is On Notice Status due to performance concerns. But they seem to be holding steady. (1116. Kayne Anderson is up 17.5% YTD, underperforming their benchmark of 18.0%YTD. And over 3 months they are underperforming their benchmark 5.9%versus a 7.0%. Both Vanguards are matching their benchmark YTD, Vanguard Institutional up 9.8% and Vanguard Mid Cap is up 10.5%. • Principal US Property was up 8.0% YTD net of fees beating their benchmark of 5.8% YTD. Global Tactical PIMCO was up 11.3%YTD net of fees outperforming their benchmark of 3.9% YTD. International Funds as a whole are outperforming their benchmark YTD. The composite is up 3.8%YTD compared to the benchmark of 1.9%YTD. Dodge & Cox, as well as DFA are leading the way in the International Sector. CFO Nawrocki wanted to remind Mike that the cash in the account will be needed for January and February 2017 payments, since the Fund usually does not get a lot of money coming in in these months. Mike said the Discretionary Team will speak with her office to determine how much of cash should be re-balanced back into the Fund. The next meeting date for the Committee will be set after the regular quarterly meeting(unless a Special Meeting is needed. With no further business to discuss, the meeting was adjourned by Vice President Christ at 2:20pm. Sincerely, r Thomas J. Quigley Clerk Board Member Approval: d(.-I f t? Signature Date r