HomeMy WebLinkAbout2019 Police Pension Fund Agendas & Minutes LOIN POLICE PENSION FUND
1 1. Douglas Ave..
Elgin; iLJLW
October.18,,2018
The following are the 2019 quarterly meeting dates and times of the
Elgin Police Pension Fund. The meetings will be held at the Elgin Law
Enforcement Facility, 151 Douglas Avenue,Elgin,IL 60120 @ 12:30
p.m. in the North Lobby Community Room.
January 16, 2019
April 17, 2019
July 17,2019
October 16,2019
Contact Person: Thomas.J. Quigley
Clerk
847-289-2744 office
847-812-7399 cell
Email: quigley_t@cityofelgin.org
ELGIN POLICE PENSION
151 Douglas Ave
lgin, IL 60120
MEETING NOTICE
January 10, 2019
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday, January 16, 2019at 12:30 p.m. The meeting will be
held at.the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin,Illinois in the
Major Case Room on the second floor.
Agenda:
Call to Order:
Minutes:
October 17, 2018 Quarterly Meeting..
October 31, 2018 Special Meeting (Hartman and Almeida).
December 11, 2018 Investment Committee Meeting.
Treasurer's Report:
a. 4th Quarter 2018 Executive Summary.
b. 4th Quarter 2018 Market Environment Summary
c. Re-balancing update— Signed trade forms and letters
Expenses: In pension packet.
Deaths: (0)
Retirements: (2) S/P James R. Bailey#349 resigned on May 26, 2018. He has made
application to receive apension benefit once he turns 60yoa on 6 2033.
Pp July
Officer John M. Mellinger#181 retired on January 11, 2019. He has
made application to receive a pension benefit.
Disabilities: (1) Officer Steven A. Lawrence #301 has made application for a duty/non-
duty disability. He"completed the process of seeing the Board's physicians and the Board
will be looking to set a date in the near future.
Terminations: (0)
J
New Hires: (3) Ofc. Sandra Chaidez #444 was hired on September 11, 2018 as a
Probationary Police Officer. She has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member.
Ofc. David T. Birkhahn-Rommelafanger#448 was hired on January 3,
2019 as a Probationary Police Officer. He has made application to be accepted into the
Elgin Police Pension Fund as a TIER II member. •
Ofc. Jacob E. Harris #119 was hired on January 3, 2019 as a Probationary
Police Officer. He has made application to be accepted into the Elgin Police Pension Fund
as a TIER II member.
Resignations: (0)
Refunds: (0)
Portability: (0)
Military Service Buy Back 40 ILCS 5/3-110(b-5): (0)
Miscellaneous:
a. 3% COLA increases for qualified retirees in 2019.
b. Almeida updated calculations and final paperwork.
c. Power of Attorney for Phyllis I. Whalen.
d. Review and accept the QILDRO for Brad/Samantha Duffy.
e, Review and accept the QILDRO for James/Tina Raap.
f. Review situation about officer discipline back in the mid 1990's.
g. Affidavits for retired members/spouses and QILDRO participants.
h. Review.IDOl The Siren bulletins.
i. Should the Board release any Executive Session Minutes?
j. The Fund has started the process for the IDOI Annual Report, Tax Levy and City
Audit.
k. Pending.Paul Sharp DOI response update.
1. Miscellaneous correspondences.
1. Kayne Anderson quarterly reports.
2. Lauterbach and Amen monthly reports:
Public Comments:
I .
Executive Session:.
Adjournment:
Sincerel
Thomas J. Q igle
Clerk
The.Minutes of the Quarterly Meeting of the Elgin Police Pension Fund,Board of Trustees, January 16,
2019. Present at the meeting was President James Roscher,Vice President Robert Christ, and Secretary
Daniel Glasby,Asst. Secretary Bob O'Connor, Trustee/Treasurer CFO Debra Nawrocki,Attorney Cary
Collins,Attorney Steve Calcaterra, and Clerk Thomas Quigley.
Absent: N/A.
Guests: Mike Piotrowski of Marquette Associates,David Mejia of Collins and Radja.
The meeting was call to order at 12:38p.m.by President Roscher.
Public Comments: N/A
Minutes:
Minutes of October 17, 2018 quarterly meeting were approved,motion made by Christ, seconded by
Nawrocki. Motion approved.
Minutes of the October 31,2018 meeting were approved,motion made by Christ, seconded by
Nawrocki. Motion approved.
Minutes of the December 11,2018 Investment Committee meeting were approved,motion by Christ,
seconded by Nawrocki. Motion approved.
Treasurer's Report:
(1) Mike Piotrowski presented the Preliminary 2018 4rd Q Executive Summary. Over all for the 4th Q
the Fund was down-6.80% (Net of Fees)underperforming the policy benchmark of-6.20%. YTD,
the Fund is down-4.10%,underperforming the policy benchmark of-3.10%. This is below the
Actuarial Rate of Return of 7.00%YTD. The Fund has an ending market value of
$114,626,507.14.The Annualized performance of the Fund over 10 years is 7.50% (Net of Fees)
matching the actuarial rate of return of 7.50%. The Fund continues to be diversified. The market
environment shows a strong GDP and earnings. But the global economy was slowing and the
Federal Reserve raised rates and was reducing its balance sheet by$50 billion a month. The
ongoing trade/tariff conflict with China and the undetermined end for Brexit have weighed on the
markets.
The re-balance trades took place on January 2, 2019. The Fund lost $8.4 million in the 4th Q 2018.
However,in January 2019 the Fund is up 2.50%. Should have an Investment Committee meeting in
February 2019. Even with the loss in 2018,the Fund still has positive cash flow.
(2) Fixed Income is up YTD 0.60% (Net of Fees)below the benchmark of 1.00%. For the 4th Q Fixed
Income is up 1.20%underperforming the benchmark of 1.70%. BMO Global Asset Management
. gavetheir report that shows they were up 1.20%underperforming their benchmark of 1.70%. C. S.
McKee also was up 1.10%underperforming the benchmark of 1.70%.
(3) U.S. Equities as a whole were down-4.90%YTD,beating their benchmark of-5.30%. Kayne
Anderson Rudnick YTD is down-0.30%(Net of Fees) outperforming the benchmark of-11.00%.
Vanguard Intl. Index Fund was matching their benchmark with-4.40%YTD. Vanguard Mid-Caps
Index Fund matched their benchmark of-9.20%YTD.
Page 1
(4) International Stocks Composite was negative YTD-19.20%,underperforming their benchmark of
—14.20%. Dodge& Cox was down-18.00%which underperformed their benchmark of-14.20%
and.EuroPacific was down-14.90%which was underperforming their benchmark of-3.10%YTD.
DFA was down -23.30%YTD underperforming their benchmark of-18.10%. Harding Loevner EM
Fund was down-18.60%YTD,which was below their benchmark of-14.60%. It was noted that
Harding Loevner was having some key members leaving and they will be put on"Alert Status"to
ensure they are monitored.
(5) Principal U. S. Property is up 8.00%YTD net of fees outperforming the benchmark of 5.80%.
(6) PIMCO is down-5.00%net of fees for the YTD underperforming the benchmark of-0.30%.
(7) The Board reviewed the signed trade forms and instructional letters that were in the meeting
packets.
(8) Marquette provided the Fund with the required Consultant Disclosure Form to comply with Public
Act 100-0542.
A motion to accept Treasurers Report was made by Christ, seconded by Glasby. 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
O'Connor. Motion approved by roll call vote 5- yes and 0 -no.
Barrington Ortho Steven Lawrence IME $152.00
BMO Global Asset Inv#20180930-683-A 3rd Q 2018 $9,087.92
Cary Collins Admin Services—.Sept 2018 $2,820.00
Admin Services—October 2018 $2,820.00
Admin Services—November 2018 $2,820.00
Admin Services—December 2018 $2,820.00
Inv#7438 Retainer Jan. Feb and March 2019 $1,250.00
Kayne Anderson Fees 3rd Q 2018 $17,052.60
Lauterbach&Amen Inv#31033 Services Fees- Sept. 2018 $1,065.00
31583 Service Fees—Oct. 2018 $1,065.00
32501 Service Fees—Nov. 2018 $1,065.00
Marquette Associates Inv# 1812020 Consulting Fees Dec. 1 2018—Feb. 28, 2019 $12,500.00
Petrucci Orthopedics Lawrence IME $2,700.00
Thomas Quigley Postage Reimbursement $30.00
Theodore Suchy Lawrence IME S1,000.00
There was a motion to approve alf trades and transactions of monies since last meeting up to this meeting
as reported. Motion made by Christ, seconded by Glasby. Motion approved by roll call vote 5 -Yes and
0-No. This is subject to approval by CFO Nawrocki.
The Board approved the monthly pension check payouts as noted above.
Deaths: (0)
Page 2
Retirements: (1) Officer John M.Mellinger#181 retired on January 11, 2019. Ofc. Mellinger's total
creditable service time is 28 years and 5 days. His pension benefit will be 70.0% of his total pensionable
salary of$106,019.81. This total salary includes base salary of$98,645.55 annually,twelve holiday
days at$4,414.91 and a 3%longevity pay of his base salary$2,959.35. The pension benefit comes to
$74,213.88 annually or$6,184.49 per month. The pension benefit payment for January 2019 shall be in
the amount of$3,989.99 prorated for(20)twenty days. Ofc. Mellinger will receive COLA as required
by the Pension Code. A motion was made by Christ to approve Ofc. Mellinger's pension benefits.
Motion was seconded by Glasby. Motion approved by a roll call vote 5—Yes and 0—No.
Disabilities: (1) Officer Steve A. Lawrence#301 has made application for a duty/non duty disability.
He has been seen by the 3 doctors of the Board and a hearing date will be set once his attorney provides
dates he is available.
Terminations: (0)
New Hires: (3) Officer Sandra Chaidez#444 was hired as a Probationary Police Officer on September
11,2018. She has made application to be accepted into the Fund as a TIER II member.
Officer Chaidez's application to the Fund was approved on a motion by Christ and each seconded by
Nawrocki. Motion approved.
Officer David Birkhahn-Rommelafanger#448 was hired as a Probationary Police
Officer on January 3, 2019. He has made application to be accepted into the Fund as a TIER II member.
Officer Birkhahn-Rommelafanger's application to the Fund was approved on a motion by Christ and
each seconded by Nawrocki. Motion approved.
Officer Jacob Harris#449 was hired as a Probationary Police Officer on January 3,
2019. He has made application to be accepted into the Fund as a TIER II member.
Officer Harris's application to the Fund was approved on a motion by Christ and each seconded by
Nawrocki. Motion approved.
Resignations: (1) Senior Patrolman James R. Bailey#349 resigned on May 26, 2018. He is leaving his
money in the fund and will collect a pension starting at age 60. S/P Bailey's total creditable service time
is 11 years, 8 months and 0 days. His pension benefit will be 27.50%of his total pensionable salary of
$106,493.42. This total salary includes base salary of$100,089.13 annually,twelve holiday days equal
to $4,479.51 and a 2%longevity pay of his base salary$1,924.78. The pension benefit comes to
$29,285.64 annually or$2,440.47 per month. The first pension benefit payment for July 2033 shall be in
the amount of$2,046.85 prorated for(26)twenty six days. S/P Bailey will receive COLA as required by
the Pension Code. A motion was made by Christ to approve S/P Bailey's pension benefits. Motion was
seconded by Glasby. Motion approved by a roll call vote 5—Yes and 0—No.
Refunds: (0)
Portability of Creditable Service: (0)
Military Service Buy Back Public Act 096-1260 40ILCS5/3-110(b-5) (0)
Page 3
Miscellaneous:
a. The Board reviewed the annual COLA increases for qualified retirees for 2019 per the Illinois
Police Pension Code. O'Connor made a motion to pay the 3%COLA increases as computed
by Lauterbach and Amen. Seconded by Nawrocki. Motion approved by a roll call vote 5-
Yes and 0—No.
b. Almeida vs. The Elgin Police Pension Fund,Board of Trustees which was filed in the 16tn
Circuit Court is resolved by agreement. Almeida will formally accept that he owes the Fund
$57,625.74 as included in the attached payment plan dated 11-12-2018 in the settlement
agreement. Repayment will be as follows: summarized as follows 10% annually of the full
amount owed each year will come from his part of the pension benefit since there is a
QILDRO. These payments will come out of his pension benefits. If he chooses,he can try
and get the QILDRO changed but that is his responsibility and he must provide any court
changes to the Board. If he should pass prior to paying off the full amount and there are
contributions to be refunded to his Estate,those contributions will be used to pay off the
remaining portion of his $57,625.74 debt prior to it being distributed to the Estate. Christ
made a motion to accept the payment plan in the settlement agreement, seconded by Glasby.
Motion approved by a roll call vote 5—Yes and 0—No.
c. The Board reviewed the Durable Power of Attorney submitted Paul S. Whalen who is the son
of Phyllis I. Whalen. Christ made a motion to accept the POA and will follow it until notified
not to. Seconded by O'Connor. Motion approved.
d. The Board Received,reviewed and accepted the QILDRO for Brad Duffy and Samantha
Duffy. The QILDRO calculations will need to be completed once Brad Duffy retires. The
Board will abide by its directives. A motion was made by Christ to accept the QILDRO.
Seconded by Glasby. Motion approved.
e. The Board Received,reviewed and accepted the QILDRO for James Raap and Tina Raap.
The QILDRO calculations will need to be completed once James Raap retires. The Board
will abide by its directives. A motion was made by Christ to accept the QILDRO. Seconded
by Glasby. Motion approved.
f. The Board reviewed a problem that came up with Det. Christopher Hughes suspension time.
Back in the mid to late 1990 under Chief Gruber, officers who were suspended were given
several options to take the suspension time. Det.Hughes was given the option and provided
some data that he worked his days off to make up for the suspension days (4) from March 6,
1998. He worked two days off which were 04-20-1998 and 04-27-1998 without pay and
agreed to have 2 vacation days subtracted from his accrued time. He was paid for the dates
of his suspension and even worked those dates and was paid for them. So contributions were
taken out for them. As for the 5 day suspension no paperwork was available to verify this
also occurred for that so he will have a 5 day suspension and no contributions paid in for that
time around June 18, 1996. The Police Union will let their membership know of possible
problems if they were involved with this type of suspension back around that time to see if
they can get information from Human Resources to validate_any claims they too handled
suspension time in this manner.
g. The Board was informed about the yearly affidavits that were sent out to
members/spouses/QILDRO participants and that many have been returned. A second round
of notifications will go out in a few days asking that those who have not sent an affidavit in
do so.
Page 4
h. The Board is waiting for a response from the department of Insurance regarding Paul Sharp
but it appears this will not be coming from the IDOI in light of The Siren article put out by
the IDOI. This matter will be closed due to lack of response from IDOI and that Officer
Sharp has stayed to make up his suspension time and retired. Also Scott Brandt of IDOI
retired.
i. The Board reviewed whether Executive Session Minutes should be released. The Board will
not release any further Executive Session Minutes at this time.
j. The clerk has started the process to gather information for the IDOI Annual Report, City
Audit and Actuarial Valuation Report.
k. 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 1:38 p.m. on motion by
Christ,second by O'Connor. Motion approved.
The next regularly quarterly meeting will beheld on April 17,2019 Ca) 12:30 p.m. The meeting
location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120.
Sincer y,,
Daniel Cad sb
Y,
Secretary
Board Member Approval: i ; $; >,.� /r i
Signature Title
tjq
Page 5
•
ELGIN POLICE PENSION BOARD
IN THE DETERMINATION )
OF DISABILITY: )
) No. 18 EPPB 1801
STEVEN A. LAWRENCE, )
Applicant. )
NOTICE OF HEARING
January 17, 2019
Steven A. Lawrence
c/Daniel E. Murphy
Law Offices of Daniel E. Murphy
53 West Jackson Blvd, Suite 1342
Chicago,IL 60604
Please be advised that the Elgin Police Pension Board will conduct an
administrative hearing on January 24, 2019 at 1:00PM. The hearing will take
place at Elgin Police Department, 151 Douglas Street, North Lobby Conference
Room, Elgin, IL regarding the Determination of Disability and possible restoration
to active service.
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 Pensio Board
ç4J2
.a es Roscher, President
Elgin Police Pension Fund
151 Douglas Street
Elgin, IL 60120
ELGIN POLICE :PENSION FUND
1 Douglas Ave
Elgin, IL 60120
SPECIAL MEETING NOTICE
February 11, 2019
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a special
meeting on Wednesday, February.20, 2019 at 12:00 p.m. The meeting will be held at
the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin, Illinois in the North
Lobby Conference Room on the first floor.
Agenda:
Call to Order: V
Roll Call:
Public Comments: V
Administrative Hearing: To review/discuss/vote on the request for duty/non-duty
disability pension benefits related to the January 24, 2019 hearing regarding Steven A.
Lawrence. ,
Executive Session: J
Update on the Lawrence Dickman duty disability/non-duty disability request for pension
benefits hearing.
Approve any invoices related to the hearings.
Adjournment:
Sincerely, .
Thomas J. uigley
Clerk
ELGIN POLICE PENSION FUND
151 Douglas Av
Elgin,. IL 60120
INVESTMENT COMMITTEE MEETING NOTICE
February 22, 2019
The ELGIN POLICE PENSION FUND, Board of Trustees announces that
an Investment Committee will be holding a meeting on February 25, 2019 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.
Since
Thomas J. Quigley
Clerk
Elgin Police Pension
Douglas151 Avenue
Elgin. , I L 60120
Minutes of the Elgin Police Pension Fund,Investment Committee meeting,held on February 25,
2019. Present at the meeting(tele-conference)were Vice President Robert Christ,Trustee/CFO
Debra Nawrocki,Clerk Thomas Quigley and Mike Piotrowski of Marquette Associates.
Absent:
Guests: None.
The meeting was call to order at 2:00 p.m.by V/P Christ.
Treasurers Report: Mike Piotrowski went over the January 31, 2019 Flash Report and a snap
shot of February 22,2019. A copy of this report is attached to the minutes. This is a preliminary
report, subject to change once the final reports are received by Marquette Associates.
The total market value of the fund is $119,517,118.00 as of January 31, 2019. The Fund is up
4.80%YTD net of fees and for a 3 month period it is up 2.10%. The 10 year annualized rate of
return is 8.50%outperforming the Policy Benchmark of 8.10% and outperforming the Actuarial
Benchmark of 7.50%. Fixed income is still under-weight which is good for now. U.S. Equities
are over-weight with the Policy. International managers are slightly over-weight. Real-estate is
over-weight and Global Tactical Comp is in line with the Policy.
U.S. Equities are up 8.30%YTD, slightly underperforming the benchmark of 8.70%. Inflation is
still under control but there are a few things weighing down the market: trade worries,Brexit and
the lagging non US Equity Markets/Emerging Markets. Overall,the Fund is doing well for the
start of 2019. As of February 22, 2019 the fund is up 6.00%—6.50%with a valuation of
$121,272,124.00.The Fund is well diversified and the allocations make sense looking in the
long-term. More re-balancing will be done in the future as needed.
As of January 31,2019, the Bond Market is up for the YTD at 1.10%, above the benchmark of-
0.90%but up for the 3 month at 2.50%which is below the benchmark of 2.70%. BMO TCH is
up 1.00%YTD, slightly better than their benchmark of 0.90%. C.S. McKee is up 1.10%YTD
beating their benchmark of 0.90%. Both are net of fees.
Kayne Anderson is up 6.90%YTD, well below their benchmark of 11.20%YTD. Both
Vanguards are matching their benchmark YTD,Vanguard Institutional up 8.00% and Vanguard
Mid Cap is up 10.60%.
•
Principal US Property was up 0.30%YTD net of fees beating their benchmark of 0.00%YTD.
Global Tactical PIMCO was up 4.50%YTD net of fees outperforming their benchmark of 1.10%
YTD.
International Funds as a whole are outperforming their benchmark YTD. The composite is up
9.00%YTD compared to the benchmark of 7.60%YTD.
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 Roscher or V/P Christ).
With no further business to discuss,the meeting was adjourned by V/P Christ at 2:16 p.m.
Sincerely,
Thomas J. Quigley
Clerk
Board Member Approval: ' j , , z-. '7_•
Signature Date
ELGIN POLICE PENSI I N FUND
151 Douglas Ave
Elgin, IL 60120
MEETING NOTICE
April 11, 2019
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday, April 17, 2019at 12:30 p.m. The meeting will be
held at the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin, Illinois in the
Major Case Room on the second floor.
Agenda:
Call to Order:
Public Comments:
Minutes:
January 16, 2019 Quarterly Meeting.
January 24, 2019 Special Meeting (Lawrence Disability).
February 20, 2019 Special Meeting (Lawrence and Dickman).
February 25, 2019 Investment Committee Meeting.
Treasurer's Report:
a. 1st Quarter 2019 Executive Summary.
b. 1st Quarter 2019 Market Environment Summary
c. Wells Fargo Sale of Institutional Retirement and Trust Business. (Search for New
Custodian?)
d. Correspondences between CFO Nawrocki and Marquette Associates.
e. Introduction of new Lauterbach and Amen Representative Dawn Ratkovich.
Expenses: In pension packet.
Deaths: (1) Virginia L. Huston.(Ackmann) passed away on March 11, 2019. Her husband
Earl M. Ackmann a retired beneficiary had passed away in 2004 and there are no surviving
beneficiaries.
Retirements: (1) Conan D. Fender#243 resigned on May 26, 2018. He has made
application to receive a pension benefit once he turns 50 you on July 25, 2020.
Disabilities: (2) Officer Steven A. Lawrence #301 had his Disability hearing on January
24, 2019 and February 20, 2019. The Board heard testimony and reviewed exhibits of the
case. Officer Lawrence was awarded a Non-Duty Disability (50%) Pension. His official
last date of pay with the Elgin Police Department was March 17, 2018. Officer Lawrence
will receive a pension commencing on March 18, 2018. He will be awarded back pay back
March 18, 2018 —March 31, 2019 in the amount of$49,123.98. His monthly pension will
be in the amount of$4,289.70, which equals a yearly pension of$51,476.40. March 2018 is
prorated to $1,937.28.
The Board will ask Cary Collis's office to look into possible upcoming dates for the
continuation of Lawrence Dickman's disability hearing possibly in May 2019.
Terminations: (0)
Resignations: (1) Officer John M. Kappel #439 resigned on January 10, 2019.
Refunds: (0) John M. Kappel has not asked for a refund of his money at this time.
New Hires: (2) Ofc. Dominique A. Collins #447 was hired on January 7, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member.
Ofc. Michael A. Perotti #450 was hired on March 29, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member.
Portability: (0)
Military Service Buy Back 40 ILCS 5/3-110(b-5): (0)
Miscellaneous:
a. James Roscher was re-elected to a two (2) year term May 1, 2019 —ApriI 30, 2021.
b. Robert Christ was re-elected to a two (2) year term May 1, 2019—April 30, 2021.
c. Letter to Mayor Kaptain regarding the re-appointment of Debra Nawrocki to the
Board of Trustees.
d.__S.ubpoena for the.recorders of Robert..Hartman's refund__.__
e. Temporary Court Order giving Plenary guardianship of Vera Welch to Kelly Van
Winkle dated April 3, 2019.
f. Review and accept the QILDRO for Ramon Lazcano/Alicia Gamboa (Lazcano).
g. IDOI The Siren reference added Annual Report questions and information required.
h. 2019 Actuarial Valuation Report prepared by Lauterbach and Amen.
i. Affidavits for retired members/spouses and QILDRO participants all returned.
j. February 25, 2019 Investment Committee Report.
k. IPPAC Spring Conference May 15 — 17 in Rock Island, IL.
1. Updated list of Board of Trustee members as of May 1, 2019.
m.Miscellaneous correspondences.
1. Kayne Anderson quarterly reports.
2. Lauterbach and Amen monthly reports.
Executive Session:
Adjournment:
Sincerely
Thomas Quigle,
Clerk
The Minutes of the Quarterly Meeting of the Elgin Police Pension Fund,Board of Trustees,April 17,
2019. Present at the meeting was President James Roscher,Vice President Robert Christ, and Secretary
Daniel Glasby,Asst. Secretary Bob O'Connor;'Trustee/Treasurer CFO Debra Nawrocki, Attorney Cary
Collins and Clerk Thomas Quigley.
•
Absent: N/A,
Gitests: Mike Piotrowski of Marquette Associates, Allison Barrett, Dawn Ratkovich and Kevin
Cavanaugh of Lauterbach and Amen. Mike Przybylski of the Elgin Firefighters Pension Fund.
The meeting was call to order at 12:36p.m. by President Roscher.
Public Comments: N/A
Minutes:
Minutes of January 16, 2019 quarterly meeting were approved,motion made by Christ, seconded by
Nawrocki: Motion approved.
Minutes of the January 24, 2019 Lawrence Disability Hearing were approved,motion made by Christ,
seconded by Glasby. Motion approved.
Minutes of the February 20, 2019 Lawrence and Dickman Hearing were approved,motion made by
Christ,seconded by Glasby. Motion approved.
Minutes ofthe February 25, 2019 Investment Committee meeting were approved, motion by Christ,
seconded by Nawrocki. Motion approved.
Treasurer's Report:
(1) Mike Piotrowski presented the Preliminary 2019 ist.Q Executive Summary. Over all for the 1st Q
2019 the Fund was up 8.20%(Net of Fees)outperforming the policy benchmark of 7.40%.
This is above the Actuarial Rate of Return of 1.70%YTD. The Fund has an ending market:value of
$122,883,392.00. The Annualized performance of the Fund over 10 years is 8.80%(Net of Fees)
outperforming the actuarial rate of return of 7.40%. The Fund continues to be diversified.
The market environment appears to be strong,with,low unemployment, low Federal Funds Rates
and no Federal Reserve rate hikes in tbe near future. But the global economy was slowing.
There is concern about world trade/tariffs and Brexit.
The Fund gained$9,4 million in the 1st Q 2019. Should have an Investment Committee meeting in
Late May or Early June 2019.
(2) Fixed Income is up YTD 2.50%(Net of Fees)above the benchmark of 2.30%. BMO Global Asset
Management gave their report that shows they wereup 2.50%outperforming their benchmark of
2.30%. C. S.McKee also was up 2.60%outperforming the benchmark of 2.30%.
(3) U.S.Equities as a whole were up15.5%YTD,beating their benchmark of 14.10%. Kayne Anderson
Rudnick YTD is up 20.30%.(Net of Fees) outperforming the benchmark of 14.60%. Vanguard Instl.
Index Fund at 13.70%outperformed their benchmark with 13.60%YTD. Vanguard Mid-Caps
Index Fund matched their benchmark of 16.80%YTD,
Page 1
(4) international Stocks Composite was positive YTD 1.1.40%, outperforming their benchmark of
10.30%:. Dodge&Cox was up 9.80%which underperformed their benchmark of 10.30% and
' • EuroPacific was up "1.3.20%which was outperforming their benchmark of 10.30%YTD. DFA was
up 8.60%YTD underperforming their benchmark of 10.90%.DFA is a very discipline value type of
fund.versus the growth.type of hind. This hurts them in the economic cycle every few years but
then they seem to pick up when growth fiends drop. Marquette will continue to watch their returns
and if needed-may have to look for an index fund or another manager: Harding Loevner EM Fund
was up 14,50% YID, which was above their benchmark of 9;90%.
(5) Principal U. S. Property is"up 1.60%.YTD net of fees outperforming the benchmark of 1.20%.
(6) PIMCO is up 5.40%net of fees for the YTD outperforming the benchmark of 2.60%.
(7) Mike discussed Wells Fargo selling its Institutional Retirement and Trust Business to Principal
Financial Group. This*should be final in the 3rd Q 2019. The transfer of all the assets will take
approximately 1 to 2 years. Mike asked the Board for guidance as to whether Marquette should
start a search for a new Custodian of the money. The Fund may get a better fee rate and more
responsive customer service with a different group since between our fund and the fire fighters fund
we.have about$250 million dollars which is a medium size fund in the business world. He would
look at US Bank,BMO, PIN and one Or two more. 'Mike would like to do this search inconjuction
with the"Fire fighters Pension•so that the money of both funds can be used to get the best fees and
to keep it uniform so the financial reports will be similar for the City of Elgin. The Board asked
Marquette to look for a new Custodian discreetly and report back at the July 2019 meeting if
possible.
(8) The Board reviewed the signed trade forms"and instructional letters that were in the meeting
packets.
(9) Mike-Piotrowski also spoke about Marquette Associates being restructured slightly. Some of the
company owned'shares were redistributed among some of the other employees and now there are 19
Partners of the employee owned firm.
A motion to accept Investment/Treasurer's-Report was made by Christ, seconded by Glasby. 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
O'Connor. Motion approved by roll call vote 5-yes-and 0 -no.
BMO Global Asset Inv#20181231-683-A Fees.4th Q 2018 $9,105.97
Kathleen Bono Inv.#8041 Court Reporter-Lawrence Hearing $539.30
Cary Collins Inv#7479 Lawrence Disability $6,496.05
• Admin Services—Jan.2019 $2,820.00
Admin Services—Feb. 2019 $2,820.00
Adxnin.Services—March 2019 $2,820.00
Inv#7509 Retainer April,May and.tune 2019 $1,250.00
• C.S. McKee Inv#36814 Fees 4th Q 2018 $10,5'47.08
• Kayne Anderson. Fees 4th.Q 2018 $15,142.46
Page 2
Lauterbach&Amen Inv# Services Fees-Nov. 2018 $1,065.00
331.39 Service Fees -Dec. 2018 $1,065.00
33597 Service Fees—Jan. 2019 $1,085.00
34019 End of Year/Prep for 1099's $770.00
34453 Service Fees—Feb. 2019 $1,085.00
Marquette Associates Inv# 1903309 Consulting Fees Mar. 1 2019--May 31, 2019 $12,500.00
Retroactive Consulting Fees Sept 1, 2018—Feb 28,2019 $2,500.00
Thomas Quigley Postage Reimbursement $138.65
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 CFO Nawrocki.
• The Board approved the monthly pension check payouts as noted above.
Deaths: (1) Virginia L. Huston (Ackmann)passed away on March 11, 2019. Her husband Earl M.
Ackmann a retired police officer passed away in 2004.at which time she applied for a surviving spouse
benefit. There are no surviving dependents. Christ made a motion to terminate Virginia L. Huston's
pension benefit, seconded by Glasby. Motion approved on a roll call vote 5 - Yes and 0—No.
Retirements: (1) Officer Conan D.Fender#243 retired on May26, 201.8. Ofc. Fender's total
creditable service time is 24 years,2 months and 15 days. In this 24 full years of creditable service,
• there are 24 months of military time buy back. His pension benefit will be 60.0%of his total
pensionable salary of$103,433.89. This total salary includes base salary of$96,239.50 annually, twelve
holiday days at$4,307.22 and a.3%longevity pay of his base salary$2,887.17. The pension benefit
comes to $62,060.28 annually or$5,171.69 per month. The pension benefit payment for July 2020 shall
be in the amount of$1,167.80 prorated for(7) seven days. Ofc. Fender will receive COLA as required
by the Pension Code. A motion was made by Christ to approve Ofc. Fender's pension benefits. Motion
Was seconded by Nawrocki. Motion approvedby a roll call vote 5 —Yes and 0—No.
Disabilities::(2)Officer Steve A. Lawrence#301 had a hearing that was held.on 2 separate days;
January 24, 2019 and February 20, 2019. The Board heard testimony and reviewed the exhibits of the
case. Officer Lawrence was awarded a Non-Duty Disability(50%)Pension. His official last date of pay
with the Elgin Police Department was March 17,2018. Officer Lawrence will be receiving a pension
commencing on March 18, 2018. He will be awarded back pay from March 18,2018 —March 31, 2019
in the amount of$49,123.98. His monthly pension will be in the amount of$4,289.70,which equals a
• yearly pension of$51,476.40. He will receive his COLA increases a required by the Illinois Police
Pension Code.
The Board has asked.that Cary Collins's Office to send a letter to Lawrence Dickman's attorney, Daniel
Murphy and see what is the status of their application, Does the Board need to set a date to continue the
hearing? Collins's Office will also notify Mr:Murphy that the Board will not be accepting the new
depositions from the Workers Comp case with the City of Elgin.
Terminations: (0)
Page 3
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New Hires: (2)Officer Dominique A, Collins#447 was hired as a Probationary Police Officer on
•
- January 7,2019.' He has made.application to be accepted into the Fund as a TIER II member.
Officer'Collins's application to the Fund was approved on a motion by Christ and each seconded by
O'Connor. Motion approved.
Officer Michael A. Perotti#450 was hired as a Probationary Police Officer on March 29,
•
• 2019. He has made application to be accepted into the Fund as a TIER II member.
Officer Perotti's application to the Fund was approved on a motion by Christ and each seconded by
Glasby. Motion approved.
Resignations: (1) Officer John M. Kappel #439 resigned on January 10, 2019.
Refunds: (1)John M. Kappel has not given notice as to a refund of his contributions.
Portability of Creditable Service: (0)
Military Service Buy Back Public Act 096-1260 401LCS5/3-110(b-5) (0).
Miscellaneous:.
a. James-Roscher was elected to another 2 year term May 1,2019--April 30, 2021.
b. Robert Christ was elected to another year term May 1,2019 - April 30, 20121.
c. A letter was sent to Mayor Kaptain asking the Debra Nawrocki be reappointed by the Mayor
to the Board of Trustees for a 2 year term May 1, 2019— April 30, 2021.
d. The Board reviewed the subpoena it received regarding Angelica Hartman and Robert
• Hartman Boone County Case NO. 2017-D-128 from Hampilos and The Board reviewed the
information that was sent back after consulting with Cary Collins's Office. The Fund
received a$25.00 check for the records that were subpoenaed.
e. The Board reviewed the Temporary Court Order giving Plenary Guardianship of Vera Welch
to Kelly Van Winkle dated April 3,2019. The Board also heard how this came about and the
contact that the Fund and the Elgin Police Depaaituent had with/from Mrs: Welch. The Fund
will abide by the court order. A motion was made by Christ to accept the order. Seconded by
. • Glasby. Motion approved.
f The Board Received,reviewed and accepted the QILDRO for Ramon Lazcano and Alicia
Gamboa(Lazcano). The QILDRO calculations will need to be completed once Ramon
Lazcano retires. The:Board will abide by its directives. A motion was made by Christ to
accept the QILDRO. Seconded by Glasby. Motion approved.
g. The Board went over the IDOI The Siren reference additional questions added to the Annual
Report and the information that will be needed to answer those questions.
h. Kevin Cavanaugh, of Lauterbach and Amen,presented their 2019 actuarial valuation report,
which determines the City of Elgin's actuarial required contribution for•the next year. The
annual contribution will increase by S1.9 million due to changes in actuarial assumption,
funding policy changes related to the timing of contributions and asset returns that were less
than anticipated. It'was a very informative presentation and provided the board with a
thorough.overview of the actuarial report.
i. The Board received all the affidavits from retirees, surviving spouses and ex-spouses.
j. The Board reviewedfihe February 25:,201.9 Investment Committee Report.
k. IPPAC.Spring Conference is May 15— 17'in Rock Island, IL.
1. Updated the list of The Elgin Police Pension Fund,Board of Trustees as of May 1, 2019.
m. The Board reviewed the reports from Kayne Anderson Rudnick and Lauterbach and Amen.
Page 4
Public Comments: N/A
Executive Session: N/A
With no further business the meeting was adjourned by President Roscher at 1:32 p.m. on motion by
Christ,second by Glasby. Motion approved.
The next regularly quarterly meeting will be held on July-10, 2019 (ii), 12:30 p.m. The meeting
location will be The Elgin Police Law Enforcement Facility, 151 Douglas Avenue Elgin, IL 60120.
Sincerely,
Daniel Glasby,
Secretary
Board Member Approval:
Signature Title
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ELGIN POLICE PENSION FUN .
151 Douglas Ave
Elgin IL 60120
INVESTMENT COMMITTEE MEETING NOTICE
May 29, 2019
The ELGIN POLICE PENSION FUND, Board of Trustees announces that
an Investment Committee will be holding a meeting on June 10, 2019 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,
Thomas.J. Quigley
Clerk
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151. • I nit . s Avenue
Els i9
n IL 1121
•
Minutes of the Elgin Police Pension Fund, Investment Committee meeting, held on June 10, .
2019, Present at the meeting(tele-conference)were Vice President Robert Christ,Trustee/CFO
Debra Nawrocki,Clerk Thomas.Quigley and Mike Piotrowski of Marquette Associates.
Absent:
Guests:, None.
The meeting was call to order at 2:00 p.m.by V/P Christ. •
•
Treasurers Report: .Mike Piotrowski went over the May 31, 2019 Flash Report. A copy of
this report is attached to the minutes. This is a preliminary report, subject to change once the
final reports are received by Marquette Associates.
The total market value of the fund is $120,626,866.00 as of May 31, 2019. The Fund is up
7.20%YTD net of fees and for a 3 month period it is up 0.20%. The 10 year annualized rate of
return is 8.00%outperforming the Policy Benchmark of 7.50% and outperforming the Actuarial
Benchmark of 7.40%. Fixed income is still under-weight which is good for now. U.S. Equities
are over-weight with the Policy. International managers are under-weight. Real-estate is over-
weight with the Policy. June 2019 is up approximately 2.00—2,25%. •
U.S.. Equities are up 13.00%YTD,outperforming the benchmark of 10.90%. Inflation is still
under control. Overall,the Fund is doing well for 2019. The Fund is well diversified and the •
allocations make sense looking in the long-term. More re-balancing will be done in the future as
needed and the tax money coming in June 12, 2019 will be put to work and some will be left in
cash so that benefits can bepaid.
As of May 31,2019, the Bond Market is:up for the YTD at 4.00%, above the benchmark of
• 3.90%but up for the 3 month at 2.70%which is below the benchmark of 2.90%. BMO TCH is
up 4.00%YTD, slightly better than their benchmark of 3.90%. C.S. McKee is up 3.90%YTD •
matching their benchmark of 3.90%. Both are net of fees.
•Kayne Anderson is up 19.50%YTD, well above their benchmark of 9.30% YTD. Vanguard
Institutional up 10.70% and Vanguard Mid Cap is up 13.80%.
Principal US Property was up 2.30%YTD net of fees beating their benchmark of 1.20%YTD.
Global Tactical PIMCO was up 4.90%YTD net of fees outperforming their benchmark of 4.10%
YTD. •
International Funds as a Whole are underperforming their benchmark YTD. The composite is up
6.80%YTD compared to the benchmark of 7.20%YTD. Value funds underperformed growth
funds. DFA and Dodge and Cox both underperformed.
Mike.wentover the-custodial fees that the Fund pays to Wells Fargo. With Wells Fargo selling
its institutional side of the business, the fund is looking to possibly change custodial managers.
Mike had an analysis of the fees and costs of 4 other possible custodians. They were US Bank,
BMO,:PNC and First Midwest. US Bank had.the lowest-fees. Wells Fargo currently charges the
Fund,$36,870.00 annually. US Bank would Charge S21,150.00. This was the lowest amount out
of the 5 which includes Wells Fargo. Mike believes from his experience US Bank is the best
choice and best able to work with a Fund of our size (midsize). The fees are good, they are easy
to work with and are flexible. Where BMO and PNC are not flexible and more expensive. First
Midwest has good customer service but they may have a difficult time providing extra services
and are the second highest in fees behind Wels Fargo. There will be more information at future
meeting since the sale of Wells Fargo does not become final for almost 2 years. If there is a
.switch, the Firefighters and RetireeRealth Trust accounts must also agree to go with whoever is
chosen to get maximum fee reduction benefit.
'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 Roscher or V/P Christ).
With no furtherbusiness-to discuss,the meeting was adjourned by V/P Christ at 2:19 p.m.
•
'Sincerely,
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Thomas J. Quigley
Clerk
Board Member Approval: --"1/ cz3-. (
1..
Signature Date
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ELGIN ' 41 LICE ' E:NSI N FUND
151 1 'w1as Ave
E1bb in, IL 61121
MEETING NOTICE
• July 2, 2019
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday, July 10, 2019 at 12:30 p.m. The meeting will be held
at the Eight Law Enforcement Facility at 151 Douglas Ave.Elgin, Illinois in the North
Lobby Conference Room on the first floor.
Agenda: .
Call to. Order:
Public Comments:
Minutes:
April 17, 2019 Quarterly Meeting.
June 10, 2019 Investment Committee Meeting.
Treasurer's Report:
• a. 2nd Quarter 2019 Executive Summary.
b. 1st Quarter 2019 Market Environment Summary
c. Custodial Services Review.
d. Municipal Compliance Report—House Bill 5088 December 31, 2018.
e. Correspondences between CFO Nawrocki, Marquette Associates, Wells Fargo.
Expenses: In pension packet.
Deaths: (4) Donna Jean Jacks passed away on March 20, 2019. Her ex-husband Robert.
Jacks was require to pay a QILDRO. Since her passing the Q.LDRO money will be
returned to him in a monthly payment of 480.51 starting June 1, 2019. The fund did not
learn of her possible passing until June 5, 2019. Her estate was overpaid $657.47, however
Robert Jacks does not want the fund to collect this over payment and is waiving those dates
forpayment to him.
Sgt. Robert E. Nelson #67 passed away on April 22, 2019. His wife Judy L.
Nelson has made application for a Spouse's Pension Benefit.
Lt. Allan E, Piske #28 passed away on May 27, 2019. There is no surviving
spouse or dependent.
••
Ann M. Roy passed away on June 3, 2019. She was the surviving spouse of Lt.
Alex Roy who passed away in 2001. There are no surviving dependents.
Retirements: (2) Sgt. Kenneth W. Ericson#259 resigned on June 1.4, 2019. Ile has made
•application to receive a pension benefit as of June 15., 2019.
Commander Frank Trost#262 will resign on August 2, 2019. He has
made application to receive a pension benefit as of August 3, 2019. He purchased 24
months of time for military service.
Disabilities: (2) Officer Marie T. Glasby has made application for a Non-Duty Disability
• Pension. Cary Collins is sending her records to the pension doctors and appointments will
be scheduled. Once the reports are returned a date will be set for a hearing.
Lawrence Dickman's disability hearing date is still pending after Cary Collins sent a letter
• to his attorney Dan Murphy.
Terminations: (0)
Resignations: (0)
•
Refunds: (1) John M. Kappel has asked for a refund of his contributions in the amount of
$5,999.62.
New Hires: (1) Ofc. Russell-Joseph Nisivaco Ii#451 was hired on April 5, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member.
Portability: (1) Officer Edwin Alva completed his portability of 2 years, 8 months and 12
days (December 28, 2015 — September 8, 2018) from Carpentersville Police Pension Fund
to the Elgin Police Pension Fund. Carpentersville Police Pension Fund transferred
•
$42,177.92 to the Elgin Police Pension Fund and there was no True Cost to Officer Alva.
His start date was September 11, 2018 which now changes to December 30, 2015.
Military Service Buy Back 40 ILCS 5/3-110(b-5): (2)
Ofc. Gregory S. Lynch applied to have 24 months of military service credited to his pensionable
• creditable service time with Elgin Police Pension Fund, Lauterbach and Amen calculated the
figures as follow. The total cost for the transfer of 24 months is $27,245.38 by May 15, 2019. Ofc.
Lynch paid that amount via a check from his 457 Plan account. His previous hire date is July 5,
2012 and the new hire date will be July 5, 2010.
. ,
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Ofc. Lisandro Ramirez applied to have 24 months of military service credited to his pensionable
creditable service time with Elgin Police Pension Fund. Lauterbach and Amen calculated the
figures as follow. The total cost for the transfer of 24 months is $36,182.82 by April 23, 2019.
Ofc. Ramirez paid that amount via a check from his personal account. His previous hire date is
August 19, 2013 and the new hire date will be August 19, 2011.
• •
Miscellaneous:.
a. Appointment of Debra K..Nawrocki to the Elgin Police Pension Fund, Board of
Trustees.
b. Annual Exam of Ryan Bahe,
• c. Updated authorized signer forms for Wells Fargo.
d. Certificate of Completion of the FY2018 IDOI Annual Report.
e. FOIA request and another inquiry.
f. Fiduciary Liability Insurance Carrier.
g. Final. slate/Vote on Election of Officers for the Board of Trustees.
h. Should the Board release any Executive Session Minutes?
i. Surety Bond for Debra K. Nawrocki CFO for the City of Elgin.
j. Miscellaneous correspondences.
1. Kayne Anderson quarterly reports.
2. Lauterbach and Amen monthly reports.
H. Executive Session:
Adjournment:
Sincerely,
L' •
Thomas J. Quigley
Clerk
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The.Mintiteg,of the cottattetiYMeeti4:Of the:Elgin Police pension fiuidi::Board of Trustees,JiiIy10
2019 Present at the trieeting.:waSPreSident James ROSeheri Vice President Robert Christ,and Secretary-
Daniel glaSby(arrived:1255 p:rn),Asst.:Seeretary:BWO'COnnor;Trustee/Treasurer CFO Debra
Nakyropkii.:AttorneYCOry'C011itis and.Clerk Thomas Quigley...
Absent; N/A.
Guests: MitoPlowowski.of Marivette,ASsOdiateS;
The meeting was call to order at 12 11p,tn.,by President Its.isCheTt
.00ttnetitt::: N/A
Minutes:
Minutes of April 1.1,1610,quarterly meeting viorOapproVed,motion Made by Christ, seconded by
Navrocki. Motion approved
Treasurer's Report:,
MikOPiotroviSkiptetentett the Preliminary 2019 2a1QE)LecutiVe.Stwitnary, Over all for the YTD
2019 the fund'Wag:Up:11.40%(Net of Fees) outperforming the policy benchmark of.1A-.0117 .
This is above the Actuarial Rate of Return Of 140%.Y.TD. The Ftindhas an ending market value of
;$1 .',7',111,2421,00,The Annualized performance of the fundnyer10 yeursist8,40%,(Net of Fees)
outperforming the actuarial rate of tettim.of 7.140%. The,Fund continues to be diversified,.
The market etriircitinent appears tO,be:strong,with low unemployment,low Federal Funds:gates, •
But tiv:glebatecoriotoyvvoslOWifigf There is:eoitern about*Mid tradditatiffs:and BrekitItill.
The Fund gained$4.13 million in.the,*14 Q2019 $1;01:ollhoo...itr net investment change And$1,2
,
tnilliOnin
net cailillow.
(2) Tixett:Income is up Y,TD:51.9%(Net of Fees) above the benchmark of:5:00%. B.M0 Global Asset:
Maniagettient:;gaye:,theirteptStlia(shows they were up: 1::I.0,°/9,•ptitperforining„teir:benthmark of
5:60%., C.S.:MdIC'et alSOVas,up S.iQVli outperforming the henChiparkof 5.00%.
(3) U S Equities2a:u;whole. ere up 200oic',,YTD beating their benchmark Of 1:,$.7.0P/o. Kayno
Anderson Rudnick YTD is pp:2729%(Net of Fees)outperforming the benchmark of 11,00%.
Vanguard Insti Index Fund at 18,50%Matching their benchmark:, Vanguard Mid-Caps Index Fund
matched their bentinnark 21.0.0%YTD.
(4) international Stocks Composite was poSitiVO:Y1D13:50%,underperforming their benchmark of
13,60%. Dodge&Cox was up:12.00%which underperformed thdiibenehinark:Of 13,60%and
EuroPacific was up1:169%which was outperforming Abair benchmark of13.60%Y'rD.DFA was
up 880%YTD in4eiperfOrining their benchmark of 1.2490%.PfWiS a very discipline value type of:
fund versus the growth type of fund. This Innis Meth in the economic cycle every few years but:
then they to pick up when groVirth,funds drop. continue to watch their retails.
and if needed may have to look for an index fund or aoothet manager: Harding 1.407vtier.EM Fund
Was up 16:10%YTD,which was ab9Y,e their bcnP*OTIC'cf...19.69.* Harding Loevner is still on •
ALERT Status ferproteSSkintiltariunier. But none have occurred since last meeting.
Page 1
(5) Principal IL a Property is.V.S0,0%YTD-net of fees elitperforinitig the bettehrharkof 1„20%,
(0) 'PlMcGiS up 8,29y0 net of fees for the YID outperforming the benchmark of 510%.
(7) Mike briefly went over the discussed WellS Fat*sellmg its Institutional:Retirement and Trust
Business te:FrinciPal:Financial Group. This should be final in the 34Q 2019 Mike provided.
Exhibit1 in the.Fxectitiye..-.Sutumaryreportvf thebrealtdo*U:of fees',and costs for the 5 banks
Marquette reyieWedfor:thepossihle custody change over. ,The'five were Wells Fargo,US Bank,
BIV14:PNC and Firat MidWeSt., Thc.10structutes are flat and tiered,gone lookhigfollic101 and
dime;the fund: The larger:M.1ns are Vella Farge,:BMQ.and PNC:. US,Bank is iAilie'middlq and the
smallest firm is First Midwest With the pooled the Pedide'and Fire Pension Funds
and the City of Elgin Retiree Health the funds would beconsidered:amedium fund with less than
$250,000;000.00..
13MQ and PNC,;,:may net be too flexible ante we would be a small iceount and they are larger
firms.. The level of service might not be what Elgin would need; With First Midwest,'they May be
too small pfnfirinte handle all theaspects.of what the fund would need., SO Marquette is
reconimetidii3g1B Bank, .,Miko.feelaithat the bank has the,light resources,flexibility and customer
Service that would fit.the funds need and:they,are.,ovet$15,000,00ess.in fees thau we currently
pay; .Also Marquette has worked with them and theyde excellent work The Firefighter!,sTension
P!inci*s.vetedtcrge:widiVS Bank pending what the Police Pension Fund does. The City of Elgin
'Retiree-HealthFund will go with US Bank The City efElgin,aiready uses US Bank for their
bonds,so:that relationshiP canbe bitiltuppn.
The changeover of Custodian for the fund can be done withiti3Olo 60 days This change would
mainly affect BMO,0.$2,McKee gn4Xaypp Anderson who would have to stop trading fer:,a few
days. Christ Made a motion to change the custodian of the funds money by terminating Wells Fargo,
And hiring US Bank as the new citatridian. ThiS'inotiortwas:seepeded by Q'COrmor.: The motion
passed oualoll:eall vote 4:—Tes arid 0—146.,
There*Vill Stillbe-Only one signature requiredon Al forms.;as i4.':(1)0110:cy40% The board Will
reView,anymoney transfers at the quarterly irteetiOga, 'There will be:3,authoriged signers,those
bein. t$,Tawtoelti;Rescher;andelasby,
(8) The BeardrevieWed the signed trade forms and iinstructional letters that were in the meeting
packets.
(R),POOleN4wrocki wentoverte yearly reqUired,HB 5088 Munitipal Compliance Repoit for 2018. 1
Christ Made4Motiou to approve the 2018. MI 5088 report.and send it to the City,seconded by
Newreeki. Approved by a roil caltvote 4.—:Yes and 9
The Board reviewed the correspondences between Nawroeki,Marquette Associates And Wells
Fargo.
A rnotionAo accept Investment/Treasiireet Reportwat thade'by Christ, secondedbyO'Cormor. This
motion was appreyed bya:roll.call vote 41eSand.:0-ne.
Page 2 • 1
• Expenses: The*,110*i.ng:.expenses:were approved as:submitted;on a mation:by::Christ,:seconded by
:Nawrocki.. Motion':apptoved by roll call.:vote 4=yes and 0-rid.o. . •
BM/Global,Asset InV.#,201.90331-.6:83-A Fees 1st Q;20'19 ' $9 303.09
Cary Collins •Adrnirr Servic`es,-April 2019 $2,820.00 .
Admin'Services:--May 2019 $2 820:00
Admin Services;-June 2019 $2,820.00 .
Jnv:#.7564 Retainer July;:Aug,and Sept.+:2019 .$x-,2°50:00
C S.McKee Inv.#'37204 Fees 1st:Q 2019: . $10,807.85
Illinois"Dept: ofJnnsurance '# :G50917 Compliance;F:ees FY;2020 $8,000.00
'KayneAnderson Fees 1st Q 2019' ' $15862,99
`Lauterbach&;Amen Inv#35143 Services Fees-March 2019 $1.,085:00
35782:Endof Year/Prep.for:2018 $1,550 00
36306 Service Fees-April 2019. $1,085:00
36903'Service.Fees.-May 2019' 1:.,085 00:
Marquette.Associates .Inv# 1906026 Consulting Fees'Alpo 1.2019-.Aug: 3:1,201.9 $13;750,00
There was;a:motion to;;approve all.trades:and transactions of monies:since last meeting up to.thit meetingI.
.as-reported;Moti'onmadeby Christ,,seconde l by O'Connor: .Motion approved by roll.'call vote.4-Yes::
and 0 :No.:This.*sulzjoet to:approval by CFO Nawrocki. . .
The Board approved:the monthly pension.;check payouts as noted above.: .
Deaths: (4):Donna,Jean Jacks passed'away on,March?„0.,201'9.. She;was�receiving.a:Q1LDRO from her.
ex:husband:Robert..Jaeks:in the atnount:of$480:51, The Board did not learn of her deatb.until June 5,
201.9. Due.to`this her=estate gas'overpaid$657.47. .Robertideli :stated.thathe.does,riot:,want:the'fund to
collect,the overpayment and is waiving his payments for the tuneof March:21,201:9 to:April 3.0,.2019. ;
As of May 1,2019,:the QILDRO portion will be,sent:to him in the;amount of$480 51. Christ made a
motion to.terminate Donna Jean Jacks.'s:QTLDRO pension benefit'in:the amount of$480.5.1, seconded I.
by;O'Connor: Motion.approved on a roll call vote 4 .Yes and:0-No. .: !
Christ made'a motion to return the QLDRO portion$48031 to Robert Jacks starting on May 1;201%,
Tis:was seconded:by'O'Connor; ,Motion approved,on a roll call vote:4-yes and 0:-No.
Sgt:Robert'E:Nelson_#67,passed away on.April22 2019. His:wife Judith L.Nelson<has I
made.application:to:receive aspouse:s pension benefit Christ made.:a miotion-to terrminate'Robert-E.
Nelson's:pension benefit:as:,ofApril.a 2019,seconded by O'Connor: Motion.'approved by rolt call
vote 5'-.Yes and 0 'No: Christmade:a:notion to:give Judith,:L.Nelson a spouse':s pension benefit to .
commence on Aprii.23,2019 in the amount:of$1,6.81:04:for-April 2019 •: There after she will receive•a: 1
monthly benefit of$6,303.89.. She will natreceive"any_.COLA per the,Police Pension Code.
. Lt:.Allan;E.Piske.#28:passed.away on:May 27,20J9 is. There no;surviving spouse or
dependents. .:Christ;made a.motion to terminate the pensionbenefit on May:.2k 2019 per`the Police -
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Pension Code,seconded;by:O'Connor., Motion.approve4 by'a roll'Call vote 5 Yes4nd:0:—.No.
Ann;M..Roy,passed:away on::June:3,201.9: "Shewas the surviving spouse of L t::Alex;Roy
'Who passed awayin:2001.. here,are no::survivirig dependents,:Christ made a motion:to terminate:the i
spouse's pension b_enefit:as of June 4;-2019., Tliis.was=°secondedbyGlasby: The motion was approved
by a roll>call vote 5 Yes and 0;-No:. ,
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Retirements:: PI:Sergeant Kerinetlt:W,.„Erieson#259 retired millie 14,.2019. ,5gt..'Erit:son',4'total
creditable service time is IIE years,0:montlis:antl:13,,dayA...His pension benefkwilYbe'52',$%,of his total
penSionable.salaryof.:$1207 2;$5. This total salary includes base salary of$.111;769;72.7zannually,
twelveholiday days at$4,,392.34,and,a 4%longevity pay of his base:salary$4471().7.9., The pension
benefit conies to$66,608 25,annually Of$5;550.69 per Month. The pension benefit payment for June
2019 shall be,in the amount of$2;96:11•37,protated'for(15)fifteen days-, 8gt.:EriCSOrt Will receive COLA
as required by*P.OripiOn.Cock: A motipp was made by Cliiit:to approyo::$gCEijc$Ws:pett8ion.
.hetiefits...:Melt*waSeCorttletlibrPlasby... Motion apprOyettbra roll call vote'5'-:Yes and 0,,-.1sIO,
Commander Frank Trost#261.Will retire on August 2,2019. Commander Trost's . •
total creditable service time is 21:5/tars;7.;months:and0 days.Tins iiieloties his military buy back of 24
months:of creditable service His pension benefit*ifibe:55.0°A of his total pensionable salary of
$148,/17.7.50:. This total salary includes base:sa1aiyof:$143j,51,44 annually and,n4Wlongeyity pay of . .
iiigbase;sality,$5;726:06. Thepetisiorcboii6fit comes to$81i852.09'Annually or$0;523:55per Month.
• The pension benefit.paythetitfot..ektotst:20.19:;shattbeinIhe amount of$6;383.32 profatedfOr.09>
twenty-ninedaya;. Commander Trost wiltreoeivO'COLA:Its required by the Pension Code. A motion . .'
WaimatkbyChrist2to approve Commander Tr,Q.st.' .1N11003::benefits. Motion was seconded by i.
Ce.Connot Motion apprOiredly nioll Callyete 5fflt.es-and 9',-.;:NO. ,.
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DISahilitles;(2)Officer,Marie T. Olgsby'hasftriadeapplitatititi for:a Noti7Duty:Disability.Petigion. Cary
collins!!.officeigathering:itifomation and records to seatbent.tb:the:Tioarfra tiOctors. With this case: ;.
. . being unique in the disease T44,'.Cary!soffiee is loOkingtohaye'pr: Samo from'ENSPE examine her •
' and also have 21 of her doctors certify her as disabled if their finding/evaluations officpr,.
Olasby is seeing the nation's top,doctors and ortieipated•iiiinationd research for her LAM. This disease
affects.a sotall:pereentage,of the population Her treating physicians are Dr Dilling,-(Loyola4AM)Dr.
•Vellanki,:(LOyola4Cidneys)and Dr.:',.441pfg1:04iigth**014-1110011s0: She.)Aaaiseetr'ZOdipr LAM .
doctors,those ate Dr :HOgArth and Dr..:mcconnior.,•pt.piiiingis!te local 14/4.dpetOr,pr: Veil*ci is
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her kidney doctor .This:..diSease,'Causes.oystaiplebS itt:her lungs and affects the kidneys.Cary Collins will t:
let...ttic.,:Board know of which 2 he may pick to complete the 3 in tins unique situation Once tha Board
gas Abe doctor reports:and certificates, 4 hearingdatewiltb.0.44 . I
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• Diclatati case.Willhelibled Muir Mr Murphy or:Mt.DiekraanbhtaetS;:tho.Board fora date to
continue the bearing. , • i
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:ResIgilations:!:04 i
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.TtefittidS: (1).John 14.KaPpel 110;pques,t0,.:ip writing il reflind ofhis pension contributions, Higlefiuut
is.,:;$5,90.62. .Christ Made a motion to refund Kappel the$5,999:02„,seeerided by O'Connor :Motion
:
apptwed„by:atolleallyote.5-Yes.and 0.---140,.
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:New Htee.a (1),QffieerittOsel14p.scpbiliSiyaco 51 was hired As;...........................Officer on i 1
April 5;;2019..He has made application to be accepted into:the:Fund'AS a TIER 11:MeMber,
Offieer.Nisivaco's application to the Fund was apptovedoit.a.motion.by'Christ and each seconded by
O'Cc11111,9T..;:**0.0 approved: 'I 1
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furtahility.of.Credltable Serviee:.1:(1)..QtficerEdwinAlya conflileted.his pertahilityof 2 years.,-ii,
months and 12 days.:(Decernhogr,2,$,201:5•: ::;.Septethher 8;.2018)from carpentersyilleFolicePenSion .
Fund tOtheElginPolieel3enSion.F04 'carpenteraYil1e.Police Pension Fund transferred$42,17792 to
• theElgin,POliee Pension Fund 'hatiterhacharid::Athen•did the calculations and the True CoSt •
-calculations-, .Thereiatetme•,costf..0.:OffieerAlva Ths origmal thir.t.44te....Wes,*tehlhet.1.1,.'20.1.8. The: • •
new start date*ill be December 30,2015,-;„!Clufst made3.thotions: Iliofirst was to accept the
• .$4.2,137.92 as the O4o0140.0o,secondedii3ricYCOtipOr; The second was•to acceptlhe$42;177,92.as•
paymentm fulLfaithetrantfer; SeCondedhY.V.Connor, The last WaS:to.tpyisa.ills:statt:#taffrpm • •
$eptethher'11,201 tand thangethatfofDeeembet.30,2015,seconded by-O'Connor. All 3 motions were
approved by.4.tolltilt.Vci.te.5.--Ves'Atia
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• Military aeryleaTztayjlack Pablkc..A09.p6..4260-401-4c$$/.141:90,0' °facer cTregory,S,Lynch
applied 16110,76.24.months of military service added as creditable service time NYith.tho..g1ghi:FoliCe
Pension Fund LainethaeffandAmen calculated the as•the foitowing. .The:lettd..Coat.for the
transfer gf:24-.mooth&js.!.$27;24$..5,8 by May 15,2019,•.iOffieerIynCh.paid.thefull amount Yiwa.check
from his 07'illawapcp4nts.is original date ofhire is July 5, 2012 and the new'start 4*o will be July 5,
20 tO..thrist.thade3-thotiOna, Thelirst.,vaato.aceeptthe$2.7,245,38 as the calculation,seconded by
sCr.Cotutdr. The second ona''WastO.aCecptlhe$2,7,245.38 a's.paytribot:iit fall for the transfer,Seconded by
w.comor.: Tho:Istvat to revise his start date froitt•AO:$,::2012 tisittkoge th4.to.:Ittly 5,.20I..0,
40oondoctliyO'Coiutor..,All 3 thetionswereapproyeaby.wrolt•call'yote. •Yes.411.(1.1:0:—No..
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Officer Lisandtoltarairetamiltett to have-24.months,of military service added as creditable service
with the Elgm Police Pension FUnd.,•.Lauterbach,andArnen.calculated thefiguresas•the...fallowing. The
total cost for the transfer Of 24 thenths is$36,182 82 by April 23, Officer Ramirez paid the fall
.
.amount Ant perm:that check. His original date of hireigliAiignat19,:20,13 and the.new start will be
...August 19,2011. •Christ made Imotioris4 The first was to aceeptilie$36,1 82,82.aa the calculation,
seconded by(Mawr,:The second one was to accept thethe$36,182 82 as payrnentiU:full for transfer, • .
toop*Iod,17.y.'0!cponcyr:. The last was to revise his 441144tc.feom:Aug*„19;:::20.4.40:chpgc:4114t.to.
•August 19,2011,'Setorided by..0terinor.:.A11.3.motions--vitete approYedliyalbli Yes',and
0 • . •
1V1iSeellaneenk• .
Debra;.NaWtheld..ivastoappointed to another 2 year term.May1,2.0.19-7,Apra.30,2021,by
Ig4yot:K.4taitt:!on April 17,2019
. • b, •Ryan•BaheVill•heopii*a ohyiiti*.fOrhts ammatptlysjcai..
t. Wells:Foge'lodated The authorization signer ferths. • .
The F?20.I.81..IllinOb.Department of Insurance Annuarkeport was ccittpleted'andihe
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Certificate 7a.v4i:41gqeitand.S•sent in
e. TheFUndleceiYod a:POI&request on June 11;2019'-andit was answered The Fund also
ariAltered.tithettittegiotik::fibilietiiail4 regarding the lithe 10,.2019.liVestitient Connnittee .•
MeetingfrOtti,Ms,:Ramirez of S&P Globatrkotintolligerito..
f The Board wants to see if there is-a better price for fiduciary.Liability IriSurance404.:*ilt
look at ot4of';4#*:.f414 see.**haying no deductible Motion hychrist,.seconded by
Mast* Motion approved . •
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• •. g The Board OrTrusteetteldan'eleetien:of officers vititthefollowitigi.nothinations'andreatiltS:',
agistAmtle4,1notion to Oop..tho'offtcots,slate thosamo:as,.20.1,8, Roscher—President,
'cliriSt:-."Vice.preaident; Secretary and
Trustee.. O'Connor seconded the motion. 'The thotiiki.was approved. .
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li;:. The Board.Will;not release'any:Executive Session:Miriutes'at:this.tiine.
i. The Board reviewed:the::Surety'Bond:for Debra K:.Nawrocki.the CFO for the City;of Elgin
and the Treasurer of the peps*fund:by State Pension Code:, Cary Collins broughtup'that
:the:amount of the bond..currently at$250,000:00might have to be increased due to certain.
provisions,in the law: CFO Nawrocki`.will look into this and if required will increase it:
j. The Board'reviewed the June 10,2019. :Investment Committee Report.:
k: The Board reviewed the reports;;framKayne Anders on;Rudnick and.Lauterbach and Amen.
Public Comments:.:I VA,
Executive:Session: MIA;
Withno further business the meeting was adjourned by President Roseber at 119p m on motion by'
Christ,second by`.O'.Connor. .Motion approved.
The next.regularly quarterly meeting will:be held:on.October.16,2019 ( 12:30.pm. The meeti*.
ldcation`will be The:.Elgin.Police:Law'Enforcementyacility; 1$1 Douglas Avenue.Elgin,IL 60120.
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Seer
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Board [ember Approval. r �.%� f"� , a.
'Signature Title 4
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ELGIN .POLICE PENSION FUND
151 Douglas Ave
Elgin, IL.60120
MEETING NOTICE
October 9, 2019:
The ELGIN POLICE PENSION FUND, Board of Trustees will be holding a regular
quarterly meeting on Wednesday, October 16, 2019 at 12:30 p.m. The meeting will be
held at the Elgin Law Enforcement Facility at 151 Douglas Ave. Elgin, Illinois.
Agenda:
Call to Order:
Public Comments:
Minutes:
July 10, 2019 Quarterly Meeting.
Treasurer's Report:
a. 3rd Quarter 2019 Executive Summary.
b. 3rd Quarter 2019 Market Environment Summary
• c. Custodial Services update.
d. Correspondences between CFO Nawrocki, Marquette Associates, Wells Fargo.
e. Advanced Funding by the City of Elgin, CFO Debra Nawrocki.
f. Fiduciary Liability Insurance Policy.
1. Toiesha Davis-White fromAlliant/Mesirow.
2.. Greg Kiesewetter from Cook Castle Associates.
Expenses: In pension packet.
Deaths: (3) Officer James L. Gough #41 passed away on July 21, 2019. There are no
surviving members to receive further benefits. His pension benefit will terminate per the
Illinois Police Pension Code.
Officer William L. Keeney#48 passed away on August 8, 2019. His wife.
Donna.J. Keeney has made application for the surviving spouse benefits.
•
Virginia Luecht passed away on August 20, 2019. She was the surviving
spouse of Officer Kenneth A. Luecht who passed away in 1995. There are no surviving
dependents. The pension benefit will terminate per the Illinois Police Pension Code. The
Fund was notified September 11, 2019 of her passing. Her August pension check was
overpaid $354.84. 'Her POA, Dee Christen was notified to return the overpayment to the
Fund.
Retirements: (2) Deputy Chief Allan J. Young #184 retired on August 2, 2019. He has
made application to receive a pension benefit as 'of August 3, 2019.
Lieutenant Katryne Potts #278 will retired on October 12, 2019. She has
made application to receive a pension benefit as of October 13, 2019. She transferred.6
• months of time from IMRF..
Disabilities: (1) Officer Marie T..Glasby has made application for a Non-Duty Disability
Pension. Cary Collins will update the.Board and a hearing date is forthcoming.
Terminations: (0)
Resignations: (2) Officer David T. Birkhahn-Rommelfanger#448 resigned on August 17,
2019.
Officer Sandra Chaidez#444 resigned on September 20, 2019.
Refunds: (2) David T. Birkhahn-Rommelfanger has asked for a refund of his contributions
in the amount of$4,635.63.
Sandra Chaidez has not yet asked for a refund of her contributions in the
amount of'$7900.60.
New Hires: (7) Ofc. Kammren-J. Cusack #452 was hired on September 4, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II 'member.
Ofc. Daniel R. Diveley#453 was hired on September 4, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER'II member.
Ofc. Ultan P. Gallagher#454 was hired on September 4, 2019 as a
Probationary Police .Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member.
Ofc. Gabriel J. Hallas.#455 was hired on September 4, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member. . -
Ofc. Carmine Romano#456 was hired on September 4, 2019 as a
Probationary Police Officer. He has made application to be accepted into the Elgin Police
Pension Fund as a TIER II member.
Ofc. MeganE. Fearon #457 was hired on September 4, 2019 as a
Probationary Police Officer. 'She has made application to be accepted into the Elgin Police
Pension Fund as a TIER II.ineinber.
:Ofc. Joshua Garcia#458 was hired on September.4, 2019 as a Probationary
Police Officer. He has made application to be accepted into the Elgin Police Pension Fund
as a TIER II member.
Portability: (2) Officer Dominique A. Collins completed his portability of 2 years, 3
months and 11 days (September 26, 2016 —:January 5, 2019) from Genoa Police Pension
Fund to the Elgin Police Pension'Fund. Lauterbach and Amen calculated the figures as
follow. Genoa Police Pension Fund transferred $26,060.22 to the Elgin Police Pension Fund
and there was no True Cost to Officer Collins. His original start date was January 7, 2019
which now changes to September 27, 2016.
Officer Christopher Valle completed his portability of 2 years, 8 months and
12 days.(January 4, 2016 September 15, 2018) from Village of Round Lake Park Police
Pension Fund to the Elgin Police Pension Fund. Lauterbach and Amen calculated the
figures as.follow. Village of Round Lake Park Police Pension Fund transferred $37,434.58
to the Elgin Police Pension Fund and there was no True Cost to Officer Valle. His original
start date was September 13, 2018 which now changes to January 1, 2016.
Military Service Buy Back 40 ILCS 5/3-110(b-5): (2)
Ofc. Matthew A. Miracle applied to.have 24 months of military service credited to his
pensionable creditable service time with Elgin Police Pension Fund. Lauterbach and Amen
calculated the figures as follow. The total cost for the transfer of 24 months is $34,369.52
by July 31, 2019. Ofc. Miracle paid that amount via a check from his retirement account.
His original hire date is November 6, 2017 and the new hire date will be November 6, 2015.
Ofc. Robert L. O'Quinn applied to-have 18 months of military service credited to his
pensionable creditable service time with Elgin Police Pension Fund. Lauterbach and Amen
calculated the figures as follow. The total cost for the transfer of 18 months is $65,885.55
by August 31, 2019.. Ofc. O'Quinn paid that amount via a check from his 457 plan account.
His previous hire date is February 10, 1992 and the new hire date will be August 10, 1990.
Miscellaneous:
a. Update on the State taking control of the Article 3 and Article 4 Pensions money.
b. Annual Exam of Ryan Bahe.
c. Surety Bond for Debra K. Nawrocki,CFO for the City of Elgin.
d. Subpoena for Records from Tricia Goostree reference the Swoboda's divorce.
e. Joseph Sostre's payment for missed benefit time due to illness. Paid $591.85.
Covers the dates froth September 2, 2018 — September 29, 2018.
e. Meeting Dates for 2020. Jan 15; April 15; July 15 and October 21, 2020.
f. New start dates for several members,
g. Robert Christ reimbursement for mandatory training expense (Hotel-$288.93).
h. Miscellaneous correspondences.
1. Kayne Anderson quarterly reports.
2. Lauterbach and Amen monthly reports.
Executive Session:
Adjournment:
Sincerely,
Thomas J. Quigley
Clerk
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The Mirmics.affhe.Quarter: eefiti- g of the.E. etisiOn/Prid,BoaidrOt Tni*e0?0ober..16;
2019'4.""Present at the meeting President James Roseher,Vice President RObertrhriSti.and'.-$Ogotary•
DanieliGrasby.'(arriVed.12.; 5p,m),..,.Assl.;'Secretary Bob O'Connor,Triistee/TreasurcrtPO.,Dobra
NOWrOCki,-.Afforiity."CarY
Absent ClerkThomaS Quigley;:
gpests:. Mike Piotrowski of Marquette Associates •
The,:ineeting•Via :Call.tO order at 12:36 p,r4,byTresident,Aqsali.er..
piibliC..Commepfs.: N/A.
Minutes::
Minutes of July 10,200:quartorly'moging were apprOved,inotioit made lv.,C4ris4•secoudtd by
"NaWitcki. TvlotionApproved
Irireasureeilleport;',
'.14itc.t.riotrowskfpresentathProlitiiinary2019,3rd-Q,EketuOvo.$1.ignyiary, Over: for the YTD
41., ..dioTund•was:up 11.40%,(igo..t-of Fees)outperforming the policy benchmark of 111,40
This is above the ActuarialRate of'Return.of 5-.•:X°41:YTD.. ThoFtiiidhas..aiL.andiPginarkatValuOof '
$.131,555;060":60.Thp:Annuali*Aperfortnanot:ofiheTund.ovet.:10,ytars is 7.50%(gottifFeOS).
outperforming the aCtitarial.rate"OftettiM.Of 7.40%, The Fund continues to be divcrsified.
'Thornark0 environment appears to be strong,.Witit low unemployment,low Federal Funds.Rates:
But the global economy was slowing.Themis,Concern about World trade/tariffS,.:noWNt.in*rOts'
rates in Europe and aroNitstilt But America is still the place to do..buSinossin'the World to make
:inonay.
The pond•oined44:84miioniri4he :Q 2019 . iiinetinycktnipt,0*pp-414116
million in net caskflow. This jaWiti3:4140 City of for next year's tax:
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(2) .Fixed.JucomoisvNTb..6.$0%(NetOfFtes)MapeiforMirigthebenchrnakof6,40%..B.MQ.61obai
Awi:Nonagenient gave their that shows they were up 640%matching their bond!**of t•
• • 6:40%.. C.a.,moicto also was np•-0,6."ontp.erfortning.the•bencht-naik.of 6:40%. •
(3) US Equities as: wholOWOrOup.:23.20%.'Y.TD,beating their benchmark Of p.i.ow :Icarle
Anderson RudniCk"M".1s,:up...32.4".(let,nf Fees)OUtperfOrtning.thobenchiparkof‘:14,.20%.
Vanguard:100:Indpx.fund:42.0.$0%.undtrporforrned slightly their benchmark of'20;60%.
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VailgPardMi&Capp..IndeN Fund was at 22..60VwSiightlyundorperformingtheitbenchinark.of 2176%
YTD.
Eteitiatiotastocks-conipoiio was-positiVoYTI?1,1.:30%,underperforming their.benchmark Of
11.60%. Dodge•:.&:Cox•was up 11 00%'Which underperformed their benchmark of 1 1.:60%and 1•
uroPacific was up: 5.70%whicirwaS outperforming their benchmark of 11:69,%!:YTD, pfAi.was•up
. .
$,.20Wrfpnniletperforminatheir.benehmnit of.1•2:•60%;DFA is now on Alett.StatiL§:lig
PerforManCe. MarquOtoWili:compipp.*warcktheitrotiuns;.and if Peedad•may'haVa to look for an
index fund or another manager Harding Lpeynor aNkfundwasvp 12.19%VrP,.which was above
their benchmark 5.00%, Harding Loevner status will be ch4figed to:Tn7compliance,
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(5): Principal U S,PrepertyAS:*4.60%,•YTD net of feeS•-ohtpetfOrrnihgtht:berichthark of 3';209/6.
(0„P,INICO,is up 7:60.0']net of fees for the YID outperforming thebehOhmark of 5,,$.0%..
(7) Mike updated the Board okthotransferringthe-funt4tOIA Bank from Wells Fargo They are still
in the process Of doing the total transfer but it is cOthing.:41ohg and should be pothpletecl.:Shoitly. Most
of the funds haSte.eit trahsfertedjeaving ttall residual athourittliarwill.be:trahafetted.hisObtOber.
The Board reviewed the completed and signed.fonns'betveenCF0
Nawrocici,..-Matquette.Associates and US Batik. •
• (8) The BOaritteiiieWed the OotteStiondehal:betweeirCMNaWroOld,Marquette Associates
and Wells Fargotegatding the-phrohases,andt-MhSfetiirotifthofilha'S assets., •
Debbie Nawrocki went over the a0apppd..A.mding.f.to.m,the City of Elgihin the amount of
$2;00.0/0000 td,paftially•o0Vek:the:tax-leyy they will be next year,: This is slightly more than
What:the:tax:10V wentup WhehLatiterbaoh and.Amen calculated itthis.yeàr.
10 The Fi.hictwent,Oyer:the paperwOrk.ferthe-fiduciarytiability Insurance sent over by.AlliaMilgegiroW
and also listehed•tp•the:PresehtatiOn••of Oregiciesewetter from Cook Castle:Associates: 'Christ made a
motion tO accept Cook Castle Associates proposal with a zero dollar retention polley.and
0;000;000:60 limit. P011ey'llumbet:,;SPD311,211410at the premium cost of$1026:00 from
November 1,2019 to November 1,1020.., The motion'was seconded by O'Connot. The.Motion.-WaS
approyeftotra ro Wcallvote 5--•Aresaitd.0.!-No., •
A motioh-th accept ThVestrheiitiTteaStifees:RepOrtwaS made by Chtist;•sec.ohclectby•Nawrocki.;• This
motformas approyed.by afoll,call:vote 5-yes,and.0-no.
. .Expenses :- The following expenses approved as submitted on a motion:by:Christ,:seconded by
Motion approved by roll call vote yesanc1:0,no . •
BMO Global Asset 1.ny,#2.01.906.3046.834 fees 2nd Q:2919 • • $9,02:46
Cary Collins .Admin Services-July • , • $2J320.00 •
( • Atighst:2019 $2;412.0:90
.Adiniu.Services September 2619, $2,820:00 .3
Inv#7564 Retairiet7•04.,Nov and Dec 209. •$.1,250.i00,
#37885:-Fees:2nd.Q.2919 .$1 1,409..0 • .i;
#2.041 Annual MetnborShip.July L.20191pihhe ,0;•,:2(12.0 :$g)941.0- • • t
• lCayne.Andetson: • Fees 2tid,q:20 10' • $17;251.•04 •
;LaptelbaCh*Atom mv#37251 Fees for the:MO:Annual:Report FY 2018 •.$2;170:00.
. 3766$Seryite,•Fees.-,Tune':2,00. . • $1;085..00
• 38489 Service Fees-July 2019 $.1,081:00
39298,'Service,Fees 2019. $1,085.00
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Marquette Associates• :Illy# .1'909005:Consulting feet•Sept-1,.'201:9, -Nov 30,.2019- $1.-4,1.62.50. :s•
Petrucci Orthopedics;pg •gy4pliabe Annual Physical $1;800:00
Thomas Quigley Postagerelitilmisetnent $1106
There yvAp.. gegtiOn to.approve all trades 4n4Aratisactions ofmonies.since:-last meeting upto this meeting.
aateported..Motion,inade by•chriA::.secontled.by O'Connor Motion approved hyroltz#11 vote
• •ind0 .No. ThiSis•StbJed..tity:apprON41 by•CFO,Na*recid. •
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Thel3oard.approved tho,•thoothlypeMion.ehetkipayoUtS:aS noted:above.
Natlis:-(1)Officer.JamesL..Gough.#41 passed away on:Jilly:21„.201.9 . There are no.surviving members
• to reeeive further benglits'. IIis'pension.'bertefit,..willbe-terminated per the.lilintils,Policeliension Code.
GlaSby-:inade,a motion to lerininate Ian*L. gough!:Spension benefit,.pectind4byTiawroelti„.:Motion:
. :Approved by a tall call'VOte.5—Yes and.0—NO. ., .
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Officer WiJqpn:L.;,.KPPIleY#48:,paP,Se4 away on August 8,.20194 His WikDonna.l.Keeney . .
has made applicafignfOreepiyespouseS pension benefit, Christ made a motion to terminate lYillign L.
1<:.eetiey!.s.pensiati benefit as of August 8,2019;:secOndedbyNavqoe4- Motion.approyed.by-roil call vote
5.,---Yes Andll'—.1‘loChrist inadeaniationta give Donna L.Keeney'x'SOptiletlidnsinn:*e*to
2019 in:the:amount:of$2,,652.14 for Angust:2010. There‘after Sliewilf.teceiVe a
monthly benefit Of$1.,57.5.:..43.., She Will.not receive any COLA;per the Police Pension Code, leftist'Made.,
a motion to:Tiansfef-a!4Apprpyp-Williain'T;.Ke,gnpy's pension to his spouse Donna in the,..aboye.listed
atnounts;,'Staniddd•byNtiWtooki....Motion aPOrovedby:,a.mil call-vote.5. Yes ar4,0--:No. i.
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Viiginia.Lne4t,passr,dawayotAngust:.2k2919.. She was the,-Stu*hing,SpOttge of Offid6r, . ,.
Kenneth A Luecht who passed away in 1995. There are no surviving dependents , The Fund was notified
Of her passing by her PONVer.of Attorney Dee Christen(14$60Orribgt,1,2019,.Ati:overparnentocentred . .
due to:the time:delay and Ms Christen WaStotified.thattu.eelifiEState owes the fluid:$154: 4and she i
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should forward lhatainount to the Fund Christ made a thotiOn.tO,tdrnitnate.theSpotiSd'S.penSion:I*nefit
as-.0f.Angu$V21,2M9. This was $coondect.:bycylasby..-The motion was approved by arOlt eall.vate5—
yosapoD.-.N4. - , 1
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Retirements; (2)Deputy Chief Allan.1.Young 084.re:tired:on August 2, D/C Young's total
dreditableterviceilineis-:28 years,;.2.:month!..g4 0 days His pensiOnbenefit.will'be 70,0%.ofhia-tatal . 1
pensionable salary Of$I5C320..84. .This total sal 'lncludea.base,salary of-ST5,0;a9S.;5(fplowily and a
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.4%,longeVitypay.of his:base salary:$0;01134. The pahA6n benefit etnites‘tO$109,424,.04:annually or
$.9.',1.18'.:72.:per"rnon& The pension payment for August 261.0:.shall he in the of..$k530:42. I
prorated for.:(29)twenty,nine4ys, D/C Young will receive COLA:as required by the Pension Code. A
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motion WaS:inade.by Glashytet.uppraye D/C Young's perisionbenefits.,.. Motion was by Christ.
Motion:approved:by nr011...ealt-Vate 5—YdS and 0:—No
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•Lientgnantl.Kaityne.POtts::#2.78'wOretire on October 20,19.. Lt.Pottes:itotal creditable service time is, 'I
.29 years,:0 months and ..ciop, *r.pensignOcnOt.w91120;,59;()%..ofber total pensionable of
$133,218 31. This total salary includes base salary of$1.23;0, ,,,,i9 atinually;tWelvehaliday, days at - 1
$4,01.2,.02:uudA:4%longevitypay:ofhis,baSe.'-.Salary'$4;946.46. Tlipotialott betiefit,COtnes:tp-$00;009..12
annnally.pr$5;$50.16 per month.. The pension bentfitayinentfor August 2026 shall be in the amount of .,
$24,90;79•pror4t.0-for,(14)fourteen days startingonAuguat.1$.;2026 when.she reaches the age of:50:.
Her September 2020 shall be in..-theutriciont:pf$ ;550.70,. Lt..Zfotts will reccive.CQLA..astequired by the ,
Pension Code.-.kitiotion was Made.:by.ChtistitO apprOve-4..Potts?$pension,benefits-,, Motion was
seconded.lirtr.Caiiiiat Motion:approved.hy aroll call vote:5,—Yes-:and.0.—.Na. • . 1
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ViSahllitties (1.):Offiecr.Marie T .GlaShyhas.inade.applieation for allon,Duty:PiSability'ronsiOn. ,Cary
e:611ins'S.-offieeiS gathering the final infOrniation:andthefspard'wilthesettingu date for her - 1
AdministrativeHearing. The schedule date IS November l8.,,,2019 atick30..a..ni, at the Elgin Police i
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Officer Sandra ch4idq:#44.4 resignod on September:20, 2019.
Refunds t (2)David T.,BirkbahhAonaridfangerhas.requested in writing u,rofitncl.of his pension,
tontributions. HiStefundig$4;03.5. 3. Christ made a motion to refund Birldiahn-ROnanelfatiger the
$4,635.0;.socondod byllawrooki. Motion approved by a roll Call Vote:5—Yes and'a—No.
Sandra:Chaidez.basmotrequosted in writing as of yet A refund of her contributions:. Her
refund will be in the amount of$7.;90900 Christ made alnotion to approve Chaitlez refundintho amount
Of$1.;900.60.once shttlibinits the request Writing,seconded by'O'Connor. Motion approved by a roll
call vote 5—YeS anal)—
New-Hires; (1),Officer:Katranron J. Cusack$52 was hired as a Probationary Polite Officer on
ISeptember 4,,20I9.. He has made application to be accepted into the Fund as u:TIEX 1!member
Officer CuSack'a application to the Fund was approved on a motion by Glasby and each seconded y
Christ. MotiortupproVed.
Officer Daniel R.Dhreley#453 was hired as aProbatiotiary Polito.Officer on September
4,2(); .. He has:made:application to be aCceprOdinta::theFund aga TIER II member
Officer Diveley's application to the Fund was approved on.A motion by Glasby and each seconded by
Christ, :Motion approved,
Officer'.Ultau Pi Gallagher#454 was hired as:4 Probationary Police Officer on
4,2019 He has,made applicatipn to he accepted into the Fund as:a.TIER II member.
Officer application tilthe:Ftind was approved on a:motion by Glasby and each seconded by
.Christ., Motion.approved.
OffiCeGabriel J;:frallag:#455 was WO as a PrObationary Police.Officor onSeptember 4,
100. He has made application to be accepted into the fund AS ATTER II inember.
Officer Hallaet application to the Fund Wat approved on A motion by Glasby and each seconded by
Christ.., Motion approved.:
Officer Carmine Romano 05.6 was.hired as:a Probationary Police(Wider on September
4,40 13 He Ila,s-lpade;application to be.accepted into the Fund as A TEEX:11.moniber.;
Officer ROniano's application to the Fund was approved on:a motion by Glasby and each senondod by
Chtit, Motion approved.
Officer mogati.E. Fearon#457 was hired as a probationary Police Officer on September .
4;2019. She has made application to be accepted into the Pitnd as a TIER IrmOmbtr..
'Officer Fearon's application:to.the,Fund was approved;on:a motion by Glasby And each secondedby
ChriSt. Motion apprOve,d. _
Officer sJoshria,Garcia,#45.8 was:hired as,a Probationary Police Officer‘on.SOptdritber 4, ,
2049:, He has made application to be,accepted into the Fund as a TIER 11 member.
Offiter•GareieS application to the Fund was approved on AmoOon'Oy Glasby and pacil,sccortded by
Christ: motto apprada..
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Portability:of Creditable::Service::(2)Offcerrominigue A. Collins completed.his:.portability of2.:years,
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3 months and 11 days(S.eptember26,;201:6—January 5,2019)from Genoa Police Pension Fund to:the
Elgin:Police Pension,Fund. Genoa Police Pension Fund transferred$26,060:22"to the Elgin Police
Pension Fund. Lauterbach.and-Amen,did the calculations:and:the True:'Costcalculations. There is no true:
cost°.to:Officer:Collins.. .His-original start date was January 7, 2019:. The new stait:date will be September
'27,2016, Christ Made:3:motions. The first motion Was toa accept the$42,:177.92"as the calculation,
seconded by.O'.Connor. The second onewas.to accept-the$26,060.22 as payment in,full for the transfer
:of time:2 years, 3 months:and i1:days;;seconded :O'Connor: The third:motion:was to revise his start
;date:from January 7,2019 and change that'to September 27.,2010, seconded.by O'Connor: All.3 motions
were;approved by a tell call vote 5'--Yes.and:0-'No.
Officer Christopher Valle completed, is.portabi"lity.of 2 years,8 months and.12 days(January 4;2016
September 15 2018)from Village.of Round Lake Park Police:Pension Fund to`the Elgin-,Police Pension
Fund. The:Village-ofRound Lake:Park_Police Pension Fund transferred;$37,434.58 to the ElginPolice
Pension Fund. Lauterbach.and.Amenn did the:calculations and.the True Cost calculations. There"is•no:true
cost to Officer.Valle. His,original start date:was September 13,.:20:18. The new start.date will be January
1,.2016;: Christ,made,3 motions,:: The first motion Vas to'accept the$37,434 58'.as.the°calculation,
seconded:by:O'Connor:" The second:motion was to accept.the$37,434:58 as:payment;in:full for"the
transfer of time 2:years,;8:months and 12 days;seconded byGlasby. The third motion was to revise his
start.date from Septeinber13,,201:8 and charige.thatto.January 1,2016, seconded by Glasby. All 3
motions-wereapproved,by roll call vote 5—Yes,and 0--No.
:Military'ServiceBuy,Back.Public Act:0961260 40ILCS5/3-110(b-5): '(2)Officer.Matthew.A.Miracle
:applied to"have 24 months of militaryservrviceadded as creditable service time with the Elgin Police
Pension Fund:._Lauterbach and,Amencalculated the"figures as:the following. The total cost,for
transfer'of 24 months`is$34 369.,52'byJuly'31,2019:. Officer Miracle paid the full amount via a:check
from`his 457plan account His original date of hire is November 6, 2017 and the new start date will:be
Novertiber:6 2015.;:Glasbymade.3°motions. The:first was to accept:tl e$34,369:52as the calculation,
:seconded by Christ The second one:was to accept the:$34 369,52 as payment:in fiill for the of
:the 24 months,seconded.by Christ Thelast motion was torevise his start date from November 6,.2017
and.:change,that to November 6,.20]5, seconded.by Christ. All 3 motions were approved by a roll call:
vote 5--Yes and 0—No:
Officer Robert L. O'Quinn applied to have:18 months ofmilitary service added as creditable"service:time
- with the.Elgin Police:Pension Fund: Lauterbach and Amen calculated the figures:as the,following,, The
total':costfor the transfer.of 18:months is$65;885 55:.by August 3:1, 2019: Officer O'Quinn.paid the full
amount via a check:from his-457.plan account. His:original;date of hire.is February 10,. 1992 and the new'
start date will be August:10,'1.990:. Christ made 3 motions: The first was to:accept the$65.,885:55:as the
calculation,seconded:by Glasby The second one was to accept the$65,885:55as payment in full for the
transfer of 18:months,seconded by Glasby: The last:was,torevise his start,date:from February 10, 1992
and change thatto.August 10;1:990;seconded by Glasby.:,All.3 motions were approved by a roll call vote:
5—'Yes°and°—No.
Miscellaneous:
a. Cary Collins updated the Board on the Governors wanting to.take.all the Miele.5-and Article
pension,funds money and consolidate them into 2:separate moneyfunds.to get better return
s.rateS and fees:, This is:from a commission recommendation that the Governor setup to look
into this. It.appears-that it-will-happen but theBoard:is.not:for it,
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b. Ryan Babe is:still deterinined tO.be disabled:ftom poliCe serviCoper Dr.,Petrucci.
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C. The Study Bond for CEO Nawtocki Willi:id-increased to$500,990'.0Q:to comply with the State
Law that the bond:heritleast 3 timeA•thd,ailiOutit of the latest edrisris and since the new census
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wilt be in 2020 this will keep from having to change it again,
d. The Board reviewed the subpoena and reply/records sent in response to Tricia GOOStree's,
subpoena for the SWOboda divorce proceedings
e.: The item regarding JoSeph:sostropayment for missed creditable service time due to illness was..
tabled until the January it.1020,Meeting. Motion by Glasby, seconded by Christ. Motion
approved.
.f. The Board quarterly meeting dates for 200 will 0. .Jangary15,:2029;April 15,1029;July 15,
.2420.arid October 21,2029:.:
g•• The Board tabled the item regarding correcting'start dates for several members that are not
correct, This item will be tabled until the January 15, 2020,Meeting. Motion by Christ,
segondedby•Glit.sby.:. Mcition approved: '
h. The.BeaktrecelVed a;reriribursementrequept:from Trustee Robert Christ regarding mandatory
training for ethics and Continuing editcation, *submitted a hotel receipt in the amount of
$2813,93. OlasbytnadeAmOtitni tilsappitivebe•rehriburSeinerit in the amount of$28,:,93,
seconded by:NoritOki. Motion approved by a roll call vote 5.-Yes arid,0.-.1%10.
i, The.Board reviewed the reports front Kayne Anderson Rudnick and Lauterbath and Amen.
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Pub&Conintentst N/A.
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Executive Session....N/A
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With to further business the meeting was adjourned by President ltoscher at 2407 pari..:0 motion by
Glasby,seconcliby.Q.'Conner, Motion approved.
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The next regularly quarterly meeting will be held onJanuary,15,2020:Q 12:30.Dan..., The meeting
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looatiote*ill bO:The,Elgio Pcilice:La*Enforeciimitfq01#-Y;;15,1:pOriglaS,A.yenne glgi%ij.:;6.01-29S .:
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Secretary
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BoardMeMber Approval
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r ELGIN POLICE PENSION FUND
151 Douglas Ave •
Elgin, IL 60120
SPECIAL MEETING NOTICE 0
November 3, 2019
The ELGIN POLICE PENSION FUND,Board of Trustees will be holding a Special
Administrative`meeting on Monday November 18,.201.9 at 10:30 a.m. The meeting will
be held in the_Multi-Purpose Room at the Elgin Law Enforcement Facility at 151
Douglas Ave.Elgin, Illinois.
Agenda:
Call to Order:
Public Comments:
Administrative Hearing: Regarding the disability application of Marie T. Glasby.
Discussion and Vote: Resolution Regarding Consolidation of Pension Funds.
Executive Session:-
Adjournment: •
Sincerely,
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Thomas J. Quigley
Clerk .