2017-01-10 - Police Pension Board - Minutes MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES
OF THE BUFFALO GROVE POLICE PENSION FUND
TUESDAY, JANUARY 10, 2017
A regular meeting of the Board of Trustees of the Buffalo Grove Police Pension Fund was held
on Tuesday, January 10, 2017 at 6:30 pm at the Police Station located at 46 Raupp Blvd, Buffalo
Grove, Illinois 60089 for the purpose of conducting regular business.
CALL TO ORDER: The meeting was called to order by Trustee Eisenmenger at 6:30 pm.
PRESENT: Trustees Scott Eisenmenger, Tony Montiel, Art Voigt, Kenneth Fox and
Jeff Feld
ABSENT: None
ALSO PRESENT: Dave Wall, Wall &Associates; Brian LaBardi, Reimer, Dobrovolny&
Karlson; Steve Earnhardt and Debbie Jancik, Lauterbach&Amen, LLP;
Scott Anderson, Finance Director
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MINUTES: October 11, 2016 Regular Meeting: The Board reviewed the
minutes from the October 11, 2016 regular meeting. A motion was made by Trustee Fox and
seconded by Trustee Voigt to approve the October 11, 2016 regular meeting minutes as written.
Motion carried by unanimous voice vote.
Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting
minutes.
TREASURER'S REPORT: Mr. Anderson relayed that he will begin working on the annual
audit report within the next couple of months, which is due in June, 2017. There was no new
information regarding the extension of the Village Tax Levy.
ACCOUNTANT'S REPORT: Monthly Financial Report: The Board reviewed the Monthly
Financial Report for the period ended 12/31/2016,prepared by L&A. As of December 31, 2016
the net position held in trust for pension benefits is $59,373,145.66, with a net change in position
of$3,130,888.11. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense
Report, Member Contribution Report and Payroll Journal. A motion was made by Trustee
Montiel and seconded by Trustee Feld to accept the Monthly Financial Report as presented.
Motion carried by unanimous voice vote.
Presentation and Approval of Bills - Vendor Checks Report: The Board reviewed the Vendor
Checks Report for the period 10/01/2016— 12/31/2016, for total disbursements in the amount of
$210,407.30. A motion was made by Trustee Montiel and seconded by Trustee Feld to approve
the disbursements shown on the Vendor Checks Report as presented. Motion carried by roll call
vote.
AYES: Trustees Eisenmenger, Montiel, Voigt, Fox and Feld
NAYS: None
ABSENT: None
Additional Bills, if any: There were no additional bills presented at this time.
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Minutes of Meeting—January 10, 2017
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INVESTMENT REPORT: Quarterly Investment Report: Mr. Wall distributed the Quarterly
Investment Report for the period ending 12/31/2016, for the Board's review. As of December 31,
2016, the ending market value of the fund is $59,508,559.97 and the investment return for the
third quarter is $680,890.49. The portfolio allocation is 2.72% Cash Equivalent, 54.34%US
Stock, 3.01%Non-US Stock, 39.66% Bonds and 0.27% Other. The total account return (net of
fees) for the quarter is 1.15%. The investment policy guidelines, cash flow and the equity
accounts were reviewed with the Board.
Mr. Wall discussed supplementing the Pension Fund with Strategic Beta Exchange Traded Funds
(ETFs). A motion was made by Trustee Fox and seconded by Trustee Eisenmenger to move
$500,000 from each Fixed Income Manager for a total of$1,000,000 into five equally rated
ETFs. Motion carried by unanimous voice vote.
Mr. Wall presented the option of opening another custodial Schwab account to fund the
Exchange Traded Funds account, if necessary. A motion was made by Trustee Eisenmenger and
seconded by Trustee Fox to approve the opening of another custodial Schwab account, for the
purpose of funding the Strategic Beta Exchange Traded Funds account, if necessary. Motion
carried by unanimous voice vote.
Review/Update Investment Policy: There were no updates to the Investment Policy at this time.
COMMUNICATION AND REPORTS: Statements of Economic Interest: The Board noted
that the List of Filers must be submitted to the County by the Village by February 1, 2017.
Statements of Economic Interest will be sent to all registered filers who will need to respond by
the deadline of May 1, 2017.
Trustee Training Updates: The Board reviewed the Trustee Training summary and discussed
upcoming training opportunities. The Board was reminded to submit all training certificates to
L&A for recordkeeping.
Storage/Destruction of Old Pension Fund Accounting Records: L&A is in the process of
digitizing records and will no longer keep hard copies. The Board took possession of the three
boxes of the Pension Fund accounting records from L&A.
ATTORNEY'S REPORT: Legal Updates: Attorney Brian LaBardi reviewed the Legal and
Legislative Update quarterly newsletter highlighting recent court decisions and pension news
with the Board and answered all questions presented.
Amendment to the Downstate Police and Downstate Firefighter Articles of the Illinois Pension
Code: There was no Amendment to the Downstate Police and Firefighter Articles of the Illinois
Pension Code.
Amendment to the Illinois Pension Code: There was no Amendment to the Illinois Pension
Code.
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Minutes of Meeting—January 10, 2017
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APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM THE FUND: There
were none at this time.
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS APPLICATIONS:
Approve Regular Retirement Benefits—James A. Nelson: The Board was presented with the
regular retirement benefit calculation for James A Nelson as follows: entry date of 08/28/1989;
retirement date of 01/03/2017; effective date of pension 01/04/2017; 50 years of age; 27 years of
creditable service; applicable salary of$101,332; applicable pension percentage of 67.50%;
originally granted monthly pension of$5,699.93; and amount of annual pension of$68,399.16.
A motion was made by Trustee Eisenmenger and seconded by Trustee Montiel to approve the
retirement benefit calculation as presented. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Montiel, Voigt,Fox and Feld
NAYS: None
ABSENT: None
OLD BUSINESS: There was no Old Business.
NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs)for Pensioners: The
Board reviewed the 2017 Cost of Living Adjustments as calculated by L&A. A motion was
made by Trustee Eisenmenger and seconded by Trustee Fox to approve the 2017 Cost of Living
Adjustments as required by statute and calculated by L&A. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Montiel, Voigt, Fox and Feld
NAYS: None
ABSENT: None
Review Trustee Term Expirations and Election Procedures: The Board noted that the active
member term currently held by Trustee Jeff Feld is expiring in April, 2017. Trustee Jeff Feld
expressed his wishes to remain on the Board if nominated. L&A will conduct an election on
behalf of the Pension Fund for one of the two active member Trustee positions.
CLOSED SESSION: There was no closed session needed.
ADJOURNMENT: A motion was made by Trustee Eisenmenger and seconded by Trustee
Voigt to adjourn the meeting at 7:45 pm. Motion carried by unanimous voice vote.
The next regular meeting of the Buffalo Grove Police Pension Fund will be held on Tuesday,
April 11, 2017 at 6:30 pm.
Respectfully submitted,
Date approved:
Tony Montiel, Secretary
Minutes prepared by Debbie Jancik, Pension Services Administrator
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