HomeMy WebLinkAboutPOLICE PENSION - 01/10/2017 - Police Pension Minutes Elk Grove Village Police Pension Board
January 10, 2017 Meeting Minutes
901 Wellington Ave, Elk Grove Village IL
The regular meeting was called to order at 3:32 PM by President Torres. Also present were Trustee
Gottwald,Trustee Moody, Trustee Schmidt, Sandy Smalley from the Elk Grove Village Finance
Department, Doug Oest and Jose Sanchez from Marquette Associates. Trustee Ambrose was absent. A
quorum was present.
The minutes of the last meeting, October 18, 2016,were read. A motion to approve the minutes of the last
meeting was made by Trustee Gottwald, Second by Trustee Moody. Aye to approve: Moody, Gottwald,
Schmidt and Torres. Motion carried.
Trustee Ambrose arrived 3:54 pm.
The financial advisor, Doug Oest, from Marquette Associates provided the financial report. The Board's
investments and performance were discussed(up 0.9%for quarter). The Total Fund Market value as of
December 31, 2016 was about$73,727,623. Oest discussed the Oakmark International fund outperformed
and recommended the fund be taken off Alert status.No changes to the Oakmark Fund were
recommended at this time and no action was taken. Oest recommended an update to the investment
policy.
Oest recommended removing the three of the Annuity Asset classes from Addendum A including MFS
Research,MetLife and MFS New Discovery.
Oest recommended changing the target asset allocation of the Annuities from 5%to
2%,the Maximum asset allocation of the Annuities from 7%to 4%,the target asset allocation of Cash
Equivalents from 0%to 1%,the target asset allocation of the Total U.S. Equity from 36%to 38%,the
minimum asset allocation of the Total U.S. Equity from 26%to 28%,the maximum asset allocation of the
Total U.S. Equity from 46%to 48%,the target asset allocation of the U.S Large-Cap Core Equity Fund
from 24%to 26%,the minimum asset allocation of the U.S Large-Cap Core Equity Fund from 19%to
21% and the maximum asset allocation of the U.S Large-Cap Core Equity Fund from 29%to 31%.
Oest recommended changing some of the Investment Objectives, including the investment percentages of
the Barclays Capital U.S Intermediate Government Credit Index from 37%to 35% and the Wilshire 5000
Index from 38%to 40%.
Oest recommended changes to the Addendum E—GASB Statement 67, including the date of adoption
and approval date from October 13, 2015 to January 10, 2017 and the some of the percentages in the
Broad Asset Class including the minimum target of Domestic Equities from 26%to 28%,the target of
Domestic Equities from 36%to 38%,the maximum target of Domestic Equities from 46%to 48%,the
target of Annuities from 5%to 2%,the maximum target of Annuities from 7%to 4% and the target of
Cash and cash Equivalents from 0%to I%.
A motion to accept the investment policy changes was made by Trustee Ambrose, Second by Trustee
Moody. Aye to approve: Ambrose, Moody, Gottwald, Schmidt and Torres. Motion carried.No other
changes were recommended at this time.
The next regular meeting date was scheduled for Tuesday,April 11, 2017 at 3:30PM at 901 Wellington
Ave, Elk Grove Village, IL.
The treasurer's report was presented by Sandy Smalley. As of November 2016,the Village has recorded
$1,075,416 in revenue for the police pension portion of the electric tax for the fiscal year and$2,346,832
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Elk Grove Village Police Pension Board
January 10, 2017 Meeting Minutes
901 Wellington Ave, Elk Grove Village IL
collected in property tax allocated to the police pension fund. The Fund had $73,968,126 in Net Assets
Held in Trust for Pension Benefits. According to the actuarial report,the fund is about 63% funded as
May 1, 2016. A motion to approve the treasurer's report was made by Trustee Moody, Second by Trustee
Schmidt. Aye to approve: Ambrose, Gottwald, Moody, Schmidt and Torres. Motion carried.
The Board discussed utilizing outside services for pension administrative duties including Police Pension
Fund Benefit Distribution Forms, additional communication with retirees and record keeping. The topic
was tabled until the next meeting.
The Board was made aware of the retirement of Police Chief Stephen Schmidt, effective November 30,
2016. Chief Schmidt accumulated 41 years, 8 months and 28 days of creditable service. His annual salary
was $162,812.00,with an initial annual benefit of$122,109.00. His monthly benefit is$10,175.75.
A motion to accept Chief Schmidt's application for pension disbursement was made by Trustee Moody,
second by Trustee Ambrose. Aye to approve: Ambrose, Moody, Gottwald and Torres. Motion carried.
Trustee Schmidt abstained from voting.
The following expenses were presented:
An invoice dated 10/26/16 in the amount of$175.00 was received from the Law Offices of
Reimer, Dobrovolny&Karlson LLC regarding the disability application of Carl Sabo.
An invoice dated 01/01/17 in the amount of$11,250.00 was received from Marquette Associates
for investment consulting services for the period of January 1, 2017 through March 31, 2017.
A motion to pay expenses was made by Trustee Ambrose, a second by Trustee Torres. Aye to approve:
Ambrose, Moody,Gottwald, Schmidt and Torres. Motion carried.
There was no comment from the public.
A motion to adjourn was made at 4:51 PM by Trustee Ambrose, a second by Trustee Schmidt. Aye to
approve: Ambrose, Moody, Gottwald, Schmidt and Torres. Motion carried. Meeting adjourned.
Jason Gottwald
Secretary, Elk Grove Village Police Pension Board
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