2018-01-09 - Police Pension Board - Minutes MINUTES OF REGULAR MEETING OF THE BOARD OF TRUSTEES
BUFFALO GROVE POLICE PENSION FUND
TUESDAY,JANUARY 9,2018
A regular meeting of the Board of Trustees of the Buffalo Grove Police Pension Fund was held on
Tuesday, January 9, 2018 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 Montiel at 6:32 pm.
ROLL CALL:
PRESENT: Trustees Art Voigt, Tony Montiel, Kenneth Fox and Jeff Feld
ABSENT: Trustee Eisenmenger
ALSO PRESENT: Brian LaBardi, Reimer, Dobrovolny & Karlson; Dave Wall, Wall & Associates;
Scott Anderson, Finance Director; Robina Amato, Lauterbach & Amen, LLP
(L&A)
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MINUTES: October 10, 2017 Regular Meeting: The Board reviewed the minutes from
the October 10, 2017 regular meeting. A motion was made by Trustee Montiel and seconded by Trustee
Voigt to approve the October 10, 2017 regular meeting minutes as written. Motion carried unanimously
by voice vote.
Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes
for review.
TREASURER'S REPORT: There was no report at this time.
ACCOUNTANT'S REPORT — LAUTERBACH & AMEN, LLP: Monthly Financial Report and
Presentation and Approval of'Bills: The Board reviewed the Monthly Financial Report for the eleven-
month period ending November 30, 2017 prepared by L&A. As of November 30, 2017, the net position
held in trust for pension benefits is$67,327,108.32 with a change in position of$7,799,338.61.The Board
also reviewed the Cash Analysis Report,Revenue Report, Expense Report,Member Contribution Report,
Payroll Journal and Quarterly Vendor Check Report for the period September 1, 2017 and November 30,
2017 for total disbursements of$222,319.60. A motion was made by Trustee Montiel and seconded by
Trustee Voigt to accept the Monthly Financial Report as presented and to approve the Vendor Checks
Report showing total disbursements of$222,319.60. Motion carried by roll call vote.
AYES: Trustees Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: Trustee Eisenmenger
INVESTMENT REPORT — WALL & ASSOCIATES: The Board discussed authorizing Wall &
Associates to remit quarterly invoices electronically to the Board. A motion was made by Trustee Montiel
and seconded by Trustee Feld to authorize Wall & Associates to remit electronic quarterly invoices
electronically. Motion carried unanimously by voice vote.
The Board discussed memorializing the authorization of Wall&Associates to wire a monthly payment to
the BMO Harris account with like registration for the Buffalo Grove Police Pension Fund for the purposes
Buffalo Grove Police Pension Fund
Minutes of Meeting—January 9, 2018
Page 2 of 3
of funding the monthly pensioners' payroll. A motion was made by Trustee Montiel and seconded by
Trustee Fox to authorize Wall & Associates to execute monthly wire transfers to the BMO Harris, as
requested by LA. Motion carried by roll call vote.
AYES: Trustees Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: Trustee Eisenmenger
Performance Summary: Mr. Wall presented the Performance Summary for the period ending 12/31/17.
As of 12/31/17,the ending market value net of fees is$67,490,756.34 for a time weighted return of 3.80%.
The current asset allocation is as follows: 1.83%Cash; 60.02% US Stock; 3.59%Non-US Stock; 34.26%
Bonds;and 0.29%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
Montiel and seconded by Trustee Fox to accept the Performance Summary as presented. Motion carried
unanimously by voice vote.
Mr. LaBardi informed the Board of correspondence received regarding a Derivative Lawsuit involving
the Navient Corporation holding within the Oakbrook Fund of the portfolio. A motion was made by
Trustee Montiel and seconded by Trustee Fox to authorize Dave Wall to correspond with the Kehoe Law
Firm regarding the Lawsuit. Motion carried by roll call vote.
AYES: Trustees Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: Trustee Eisenmenger
The Board also discussed directing Dave Wall to contact Oakbrook Investments and advise that they are
not permitted to totally liquidate the Navient Corporation holding within the Oakbrook Fund. A motion
was made by Trustee Montiel and second by Trustee Fox to authorize Dave Wall to contact Oakbrook
Investments as discussed. Motion carried by roll call vote.
AYES: Trustees Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: Trustee Eisenmenger
ATTORNEY'S REPORT: Mr. LaBardi reviewed the January Legal and Legislative Update newsletter
and answered all questions.
APPLICATIONS FOR MEMBERSHIP[WITHDRAWALS FROM THE FUND: Application for
Membership—Johnathan D. Officer: The Board reviewed the Application for Membership submitted by
Johnathan D. Officer. A motion was made by Trustee Montiel and seconded by Trustee Voigt to accept
Johnathan D. Officer into the Buffalo Grove Police Pension Fund, effective 11/27/2017, as a Tier 11
participant. Motion carried unanimously by voice vote.
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS APPLICATIONS: There were
no applications for retirement or disability benefits at this time.
OLD BUSINESS: Portability Status Update — Chadd Kaiser: The Board noted Officer Kaiser has
continued to make payments towards his true cost balance pertaining to his portability transfer from the
Schiller Park Police Pension Fund. No action is needed at this time.
Buffalo Grove Police Pension Fund
Minutes of Meeting—January 9,2018
Page 3 of 3
NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs)for Pensioners: The Board
reviewed the 2018 Cost of Living Adjustments (see attached) as calculated by L&A. A motion was made
by Trustee Montiel and seconded by Trustee Fox to approve the 2018 Cost of Living Adjustments as
required by statute and calculated by L&A.Motion carried by roll call vote,with Trustee Voigt abstaining
from his own increase.
AYES: Trustees Fox, Feld, Montiel and Voigt
NAYS: None
ABSENT: Trustee Eisenmenger
Review Trustee Term Expirations and Election Procedures:The Board noted that the active member terms
currently held by Trustee Eisenmenger and Trustee Montiel and the retired member term currently held
by Trustee Voigt are expiring in April 2018. Trustees Eisenmenger, Montiel and Voigt expressed their
wishes to remain on the Board if nominated. L&A will conduct an election on behalf of the Pension Fund
for both of the active member Trustee positions and the retired member Trustee position. The Board also
noted that the appointed Trustee position held by Trustee Fox is expiring in April 2018 and he wishes to
remain on the Board. The Board will contact the Village and seek reappointment of Trustee Fox to the
Board.
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.
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, 2018. Statements of Economic
Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2018.
2018 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for
reimbursement increased to $0.545 per mile effective January 1, 2018.
CLOSED SESSION,IF NEEDED: There was no closed session needed at this time.
ADJOURNMENT: A motion was made by Trustee Fox and seconded by Trustee Montiel to adjourn the
meeting at 8:06 pm. Motion carried unanimously by voice vote.
The next regular meeting of the Buffalo Grove Police Pension Fund will be held on April 10, 2018 at 6:30
pm.
Respectfully submitted,
Tony Montiel, Board Secretary
Minutes prepared by Robina Amato, Pension Services Administrator, Lauterbach&Amen