2019-02-07 - Police Pension Board - Minutes MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE
BUFFALO GROVE POLICE PENSION FUND
FEBRUARY 7, 2019
A regular meeting of the Board of Trustees of the Buffalo Grove Police Pension Fund was held on
Thursday, February 7, 2019 at 10:00 am 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 10:09 am.
ROLL CALL:
PRESENT: Trustees Scott Eisenmenger, Tony Montiel, Ken Fox and Jeff Feld
ABSENT: Trustee Art Voigt
ALSO PRESENT: Brian LaBardi, Reimer& Dobrovolny, PC; Stephen McLeod, Wall Capital Group;
Jackie Brady, PGIM Real Estate; Robina Amato, Keri O'Brien, Dawn Ratkovich
and Steve Earnhardt (joined the meeting at 10:22 am), Lauterbach & Amen, LLP
(L&A); Scott Anderson (joined the meeting at 10:19 am),Village of Buffalo Grove
Finance Director
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MINUTES: October 24, 2018 Regular Meeting Minutes: The Board reviewed the
minutes from the October 24,2018 regular meeting. A motion was made by Trustee Montiel and seconded
by Trustee Fox to approve the October 24, 2018 regular meeting minutes as written. Motion carried
unanimously by voice vote.
Semi-Annual Review of Closed Session Meeting Minutes: The Board reviewed the minutes from the
October 24, 2018 closed session. A motion was made by Trustee Montiel and seconded by Trustee Fox to
not release these minutes at this time due to pending matters. Motion carried unanimously by voice vote.
TREASURER'S REPORT: There was no Treasurer's 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 twelve-
month period ending December 31, 2018 prepared by L&A. As of December 31, 2018, the net position
held in trust for pension benefits is $64,211,673.30 with a change in position of-$3,220,804.93. 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 October 1, 2018 through December 31,
2018 for total disbursements of$232,261.45. A motion was made by Trustee Montiel and seconded by
Trustee Eisenmenger to accept the Monthly Financial Report as presented and to approve the Vendor
Check Report in the amount of$232,261.45. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Montiel,Fox and Feld
NAYS: None
ABSENT: Trustee Voigt
Scott Anderson joined the meeting at 10:19 am.
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Steve Earnhardt joined the meeting at 10:22 am.
INVESTMENT REPORT — WALL CAPITAL GROUP: PGIM Real Estate Presentation: Jackie
Brady reviewed the PGIM Real Estate presentation with the Board and answered all questions. Further
discussion will be held at the next regular meeting.
Jackie Brady left the meeting at 10:44 am
Quarterly Performance Summary: Mr. McLeod presented the Board with the Annual Disclosures as
required and the Quarterly Performance Summary for the period ending December 31, 2018. As of
December 31, 2018, the ending market value net of fees is $64,233,266.74 for a time weighted return of-
8.94%. The current asset allocation is as follows: 2.08% Cash; 57.81% US Stock; 3.27%Non-US Stock;
36.68% Bonds; and 0.16% Other Investments. Mr. McLeod reviewed the Fixed Annuities, Government
Fixed Income, Domestic Equity, International and Real Estate portfolios with the Board. A motion was
made by Trustee Fox and seconded by Trustee Eisenmenger to accept the Quarterly Performance
Summary as presented. Motion carried unanimously by voice vote.
The Board discussed reallocating $700,000 from the Stratford Fixed Income Fund into the BMO Harris
account for the purpose of funding future benefit payments. A motion was made by Trustee Fox and
seconded by Trustee Feld to reallocate the funds as discussed. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Montiel, Fox and Feld
NAYS: None
ABSENT: Trustee Voigt
Review/Update Investment Policy: The Board reviewed the Investment Policy and noted that no changes
were needed at this time.
APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM THE FUND: There were no
applications for membership or withdrawals from the Fund.
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS APPLICATIONS: Approve
Regular Retirement Benefits — Rollin Hamelherg: The Board reviewed the regular retirement benefit
calculation for Rollin Hamelberg prepared by L&A. Officer Hamelberg had an entry date of 10/04/88,
retirement date of 01/04/19, effective date of pension of 01/05/19, 55 years of age at date of retirement, 30
years of creditable service, applicable salary of$109,667.52, applicable pension percentage of 75%, amount
of originally granted monthly pension of $6,854.22 and amount of originally granted annual pension of
$82,250.64. A motion was made by Trustee Eisenmenger and seconded by Trustee Montiel to approve Rollin
Hamelberg's regular retirement benefit as calculated by L&A. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Montiel, Fox and Feld
NAYS: None
ABSENT: Trustee Voigt
OLD BUSINESS: There was no old business to review.
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NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs)for Pensioners: The Board
reviewed the 2019 Cost of Living Adjustments (see attached) as calculated by L&A. A motion was made
by Trustee Eisen menger and seconded by Trustee Montiel to approve the 2019 Cost of Living Adjustments
as required by statute and calculated by L&A. Motion carried unanimously by voice vote.
Review/Trustee Term Expirations and Election Procedures: The Board noted that the appointed Trustee
position held by Trustee Feld is expiring in April 2019 and he wishes to remain on the Board. The Board
will contact the Village and seek reappointment of Trustee Feld to the Board.
Portability Update—Michael Essig: The Board noted that L&A mailed correspondence to Michael Essig
regarding his request to calculate the amount of money due to the Buffalo Grove Police Pension Fund
from the Bui7 Ridge Police Pension Fund to transfer 5 years, 1 month and 8 days creditable service time.
Further discussion will be held at the next scheduled meeting.
IDOL Annual Statement: The Board noted that completion of the IDOI Annual Statement is currently in
process. Updates will be provided to the Board as they become available.
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 has been submitted to the County by the Village by February 1, 2019. Statements of Economic
Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2019.
Review/Approve — Death Audit Service Authorization: The Board discussed the Death Audit Service
offered through IPPFA and L&A and designated Trustee Montiel as the Pension Fund Representative to
communicate with L&A regarding the service. A motion was made by Trustee Eisenmenger and seconded
by Trustee Feld to authorize the Death Audit Service as discussed and to execute the Death Audit Service
Authorization form provided by L&A. Motion carried unanimously by voice vote.
2019 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for
reimbursement increased to $0.58 per mile effective January 1, 2019.
Mr. McLeod presented the Board with the necessary paperwork to authorize Kahn, Swick and Foti, LLC
to gain read only access to the Schwab account in order to begin fraud monitoring services.
ATTORNEY'S REPORT: Mr. LaBardi reviewed the quarterly Legal and Legislative Update newsletter
and answered all questions.
Mr. LaBardi informed the Board that the Navient case is pending approval and final settlement is expected
in May 2019. No further is action is needed.
CLOSED SESSION, IF NEEDED: There was no closed session needed.
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ADJOURNMENT: A motion was made by Trustee Eisenmenger and seconded by Trustee Montiel to
adjourn the meeting at 11:55 am. Motion carried unanimously by voice vote.
The next regular meeting is April 16, 2019 at 10:00 am.
Respectfully submitted,
Tony Montiel, Board Secretary
Minutes prepared by Robina Amato, Pension Services Administrator, Lauterbach &Amen, LLP
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