2017-04-11 - Police Pension Board - Minutes MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES
OF THE BUFFALO GROVE POLICE PENSION FUND
TUESDAY APRIL 11, 2017
A regular meeting of the Board of Trustees of the Buffalo Grove Police Pension Fund was held
on Tuesday April 11, 2017 at 6:30pm at the Buffalo Grove Police Department located at 46
Raupp Boulevard, Buffalo Grove, IL 60089 for the purpose of conducting regular business.
CALL TO ORDER: The meeting was called to order by Trustee Eisenmenger at 6:30pm.
ROLL CALL:
PRESENT: Trustees Scott Eisenmenger, Art Voigt, Tony Montiel and Jeff Feld
ABSENT: Trustee Kenneth Fox
ALSO PRESENT: Evan Haim, Reimer, Dobrovolny&Karlson; Dave Wall, Wall&
Associates; Scott Anderson, Finance Director, Scott Sprandel and Mitch
Zacks, Zacks Investment Portolio Management; Robina Amato and
Jessica Fain, Lauterbach &Amen, LLP
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MINUTES: January 10, 2017 Regular Meeting: The Board
reviewed the minutes from the January 10, 2017 regular meeting. A motion was made by Trustee
Eisenmenger and seconded by Trustee Montiel to approve the January 10, 2017 regular meeting
minutes as written. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
TREASURER'S REPORT: Mr. Anderson explained that the Village audit has started and
correspondence should be expected of the Pension Fund for follow up on testing some
beneficiaries' data. No action is needed at this time.
ACCOUNTANT'S REPORT: Monthly Financial Report: The Board reviewed the Monthly
Financial Report for the three-month period ending March 31, 2017 prepared by L&A. As of
March 31, 2017, the net position held in trust for pension benefits is $61,392,773.91 with a change
in position of$1,865,004.20. The Board also reviewed the Cash Analysis Report,Revenue Report,
Expense Report,Member Contribution Report and Payroll Journal.A motion was made by Trustee
Eisenmenger and seconded by Trustee Voigt to accept the Monthly Financial Report as presented.
Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
Presentation and Approval of Bills: The Board reviewed the Vendor Checks Report for the period
January 1, 2017 through March 31, 2017 for total disbursements of$227,819.65. A motion was
made by Trustee Eisenmenger and seconded by Trustee Montiel to approve the Vendor Checks
Report showing total disbursements of$227,844.65. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld.
NAYS: None
ABSENT: Trustee Fox
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Illinois Department oflnsurance Compliance Fee: The Board noted that the Buffalo Grove Police
Pension Fund will receive their IDOI Compliance Fee invoice in May and payment is due by June
30ti' A motion was made by Trustee Eisenmenger and seconded by Trustee Feld to approve
payment of the IDOI Compliance Fee upon receipt of the invoice, in an amount not to exceed
$8,000.00. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
ACTUARIAL REPORT: Jessica Fain of L&A presented the preliminary 2017 Actuarial
Valuation and GASB 67/68 Reports to the Board. All questions were answered by Ms. Fain.
INVESTMENT REPORT: Wall & Associates Portfolio Review: Mr. Wall presented the
Performance Summary for the period ending March 31, 2017. As of March 31, 2017, the ending
market value net of fees is $2,281,008.60 for a time weighted return of 3.84%. The current asset
allocation is as follows: 1.99% Cash; 57.69% US Stock; 3.21% Non-US Stock; 36.91% Bonds;
and 0.20%Other Investments. Mr.Wall reviewed the Fixed Annuities, Government Fixed Income,
Domestic Equity, International and Real Estate portfolios with the Board. A motion was made by
Trustee Eisenmenger and seconded by Trustee Feld to accept the March 31, 2017 Quarterly
Investment Performance Report as presented. Motion carried unanimously by voice vote.
The Board noted that further discussion regarding adjustments to the current benchmark being
used on the Passive Small-cap Fund will be held at the next regular scheduled meeting.
The Board discussed a transfer of$110,000.00 from the Stratford Fixed Income Account to the
Operating Account to cover monthly benefits for the month of April 2017. A motion was made by
Trustee Eisenmenger and seconded by Trustee Voigt to transfer$110,000.00 for monthly benefits
as discussed. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
Review/Update Investment Policy, if necessary: There were no updates necessary to the
Investment Policy at this time.
APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for
Membership— Chadd Kaiser: The Board reviewed the Application for Membership submitted by
Chadd Kaiser. A motion was made by Trustee Eisenmenger and seconded by Trustee Voigt to
accept Chadd Kaiser into the Buffalo Grove Police Pension Fund, effective 02/27/17, as a Tier I
participant. Motion carried unanimously by voice vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Status of Regular
Retirement Benefits—James A. Harris: The Board was presented with the regular retirement
benefit calculation for James A. Harris as follows: entry date of 01/03/1989; retirement date of
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03/02/2017; effective date of pension of 03/03/2017; 52 years of age at date of retirement; 28
years of creditable service; applicable salary of$101,332.00; applicable pension percentage of
70.00%; originally granted monthly pension of$5,911.03; and amount of originally granted
annual pension of$70,932.36. A motion was made by Trustee Eisenmenger and seconded by
Trustee Montiel to approve the regular retirement benefits for James A. Harris as calculated by
L&A. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
The Board requested that Lauterbach & Amen copy Reimer, Dobrovolny & Karlson on all
communication regarding benefit calculations going forward so a Written Decision and Order can
be prepared for approval at the following quarterly meeting.
OLD BUSINESS: There was no old business at this time.
NEW BUSINESS: Portability Update — Chadd Kaiser: The Board discussed Chadd Kaiser's
transfer of creditable service. Lauterbach & Amen is in the process of preparing cost calculations
and further discussion will be held at the next regularly scheduled meeting.
Zacks Investment Management Presentation: The Board noted that the Zacks portfolio has grown
from approximately $5,000,000.00 to approximately $15,400,000.00 throughout the relationship
of the portfolio. Mr. Zacks apprised the Board of the overall performance and investment strategy
of the Zacks Investment Portfolio. From the inception date of January 2009 through March 2017,
the annualized rate of return is 14.9% with a standard deviation rate of return of 12.4% which is
slightly underperforming both the S&P 500 and Russell 3000 benchmarks of 15.22% and 15.35%
respectively.
Appointed Member Term Expiration—Jeff Feld: The Board noted that a letter will be sent to the
Village after the Village Meeting during the first week in May requesting Jeff Feld's
reappointment to the Board. Further discussion will be held at the next regularly scheduled
meeting.
Fiduciai-y Liability Insurance Renewal: The Board noted that the Buffalo Grove Police Pension
Fund will receive their Fiduciary Liability Insurance invoice for renewal before May 1, 2017. A
motion was made by Trustee Eisenmenger and seconded by Trustee Feld to approve payment of
the Fiduciary Liability Insurance in an amount not to exceed $9,000.00. Motion carried by roll
call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel and Feld
NAYS: None
ABSENT: Trustee Fox
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 record keeping.
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COMMUNICATIONS OR REPORTS: Statements ofEconomic Interest: The Board noted that
the Statements of Economic Interest are due by May 1, 2017.
Affidavits of Continued Eligibility: The Board noted that L&A will mail Affidavits of Continued
Eligibility to all pensioners with the June payroll cycle. A status update will be provided at the
next regularly scheduled meeting.
ATTORNEY'S REPORT: Legal Updates: Mr. Haim discussed recent court cases and decisions
with the Board and answered all questions.
CLOSED SESSION: No closed session was needed.
ADJOURNMENT: A motion was made by Trustee Eisenmenger and seconded by Trustee
Voigt to adjourn the meeting at 8:27pm. Motion carried unanimously by voice vote.
Tony Montiel, Board Secretary.
— The next regular meeting is scheduled for July 11, 2017 at 6:30pm
Minutes prepared by Robina Amato, Pension Services Administrator
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