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Home My WebLink AboutPOLICE PENSION - 03/12/2019 - Police Pension MinutesTHE REGULAR MEETING MINUTES OF THE ELK GROVE VILLAGE POLICE PENSION FUND BOARD OF TRUSTEES MARCH 13, 2019 A regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees was held on Wednesday, March 13, 2019 at 5:30 p.m. at the Charles J. Zettek Municipal Complex in the Gayle B. Bantner Fire & Police Commission Office located at 901 Wellington Avenue, Elk Grove Village, Illinois 60007, pursuant to notice. CALL TO ORDER: Trustee Christopher Torres called the meeting to order at 5:31 p.m. ROLL CALL: PRESENT: Trustees Christopher Torres, Thomas Molloy, Warren Moody and Charles Walsh ABSENT: Trustee Allan Ambrose ALSO PRESENT: Finance Director Christine Tromp, Kyle Pockat and Brian Koehler, Elk Grove Village; Doug Oest, Marquette Associates; Liz Failing, Lauterbach & Amen, LLP PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: January 29, 2019 Regular Meeting Minutes: The Board reviewed the January 29, 2019 regular meeting minutes. A motion was made by Trustee Walsh and seconded by Trustee Molloy to approve the January 29, 2019 regular meeting minutes as written. Motion carried unanimously by voice vote. INVESTMENT REPORT — MARQUETTE ASSOCIATES: Executive Summary: Mr. Oest presented the Executive Summary for the period ending February 28, 2019. Mr. Oest discussed the market environment, investment manager status report, summary of investment changes, total fund composite and performance by investment managers. As of February 28, 2019, the three- month total net return is 2.1% and the year-to-date total net return is 6.7% for an ending market value of $85,589,017. The current asset allocation is as follows: Fixed Income at 34.8%, U.S. Equity at 40.7%, International Equity at 12.7%, Real Estate at 9.8%, Annuity at 1.6%, and Cash at 0.5%. Fixed Income Manager Search: Mr. Oest presented the Fixed Income Manager search to the Board. Mr. Oest recommended terminating the McDonnell Fixed Income Fund and reallocating all proceeds in the amount of $14,843,127 as of February 28, 2019 to the Segall Bryant and Hamill Fixed Income Fund. Mr. Oest also presented the proposed Segall Bryant and Hamill Investment Advisory Agreement with recommended changes to the "Discretionary Authority of the Advisor" and "Brokerage" sections of the Agreement and noted that the fees were reduced from 25 bps to 20 bps on all amounts. A motion was made by Trustee Walsh and seconded by Trustee Moody to terminate the McDonnell Fixed Income Fund and hire Segall Bryant and Hamill as a replacement pending Board Attorney review of the proposed Investment Advisory Agreement as discussed. Motion carried unanimously by voice vote. Review/Update Investment Policy: Mr. Oest presented the updated Investment Policy reflecting 2of19 the change in Fixed Income Manager from McDonnell Investments to hiring Segall Bryant and Hamill and to include the reduced assumed actuarial rate of return from 7.25% to 7% effective May 1, 2018. A motion was made by Trustee Moody and seconded by Trustee Molloy to adopt the updated Investment Policy with the amendments discussed. Motion carried unanimously by voice vote. Mr. Oest reviewed the Asset Liability Analysis Summary to the Board and answered all questions. The Board noted the Tuesday, July 9, 2019 regular meeting will be moved to Wednesday, July 10, 2019 at 5:30 p.m. TREASURER'S REPORT — ELK GROVE VILLAGE: Monthly Financial Report: The Board reviewed the Statement of Plan Net Assets, Revenue and Expense Report and the Gross Monthly Pension Payments for the period ending February 28, 2019 prepared by Elk Grove Village. As of February 28, 2019, the net assets held in trust for pension benefits is $85,856,406. A motion was made by Trustee Molloy and seconded by Trustee Walsh to accept the Treasurer's Report as presented. Motion carried unanimously by voice vote. The Board discussed contribution refunds remaining in the Fund from former members. Updates will be provided as they become available. Presentation and Approval of Bills: The Board reviewed the Reimer & Dobrovolny PC invoice #24641 in the total amount of $1,379.02 with the Board approving the current amount due of $879.02 for legal services. A motion was made by Trustee Walsh and seconded by Trustee Molloy to approve the Reimer & Dobrovolny PC invoice as presented. Motion carried unanimously by voice vote. The Board reviewed the L&A invoices #34454 and #33140 in the amounts of $1,645.00 each for PSA services rendered for the months of January and February 2019. A motion was made by Trustee Molloy and seconded by Trustee Walsh to approve the L&A invoices as presented. Motion carried unanimously by voice vote. The Board reviewed the INSPE Associates, LTD invoice #60183 in the amount of $2,160.00 for Carl Sabo's independent medical evaluation. A motion was made by Trustee Moody and seconded by Trustee Molloy to approve the INSPE Associates, LTD invoice as presented. Motion carried unanimously by voice vote. Illinois Department of Insurance Compliance Fee: The Board noted that the Illinois Department of Insurance Compliance Fee invoice will be issued and payment is due by June 30, 2019. An update will be provided at the next regular meeting. COMMUNICATIONS OR REPORTS: Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest are due by May 1, 2019. Affidavits of Continued Eligibility: The Board noted that L&A will mail the Affidavits of Continued Eligibility to all pensioners in June and a status update will be provided at the next scheduled meeting. 3of19 TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and discussed upcoming training opportunities. Trustees were reminded to submit all training certificates to L&A for recordkeeping. Approval of Trustee Training Registration Fees and Reimbursable Expenses: There were no Trustee training registrations or reimbursable expenses presented for approval. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Resignation — Nicholas Modugno: The Board noted that Nicholas Modugno has separated service from the Elk Grove Village Police Department effective February 15, 2019. A contribution refund request has not been submitted at this time. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Deceased Pensioner — John Banter: The Board noted that pensioner John Banter passed away January 26, 2019 with no surviving spouse and his pension has ceased. OLD BUSINESS: Review/Adopt — Municipal Compliance Report: The Board reviewed the Municipal Compliance Report prepared by Elk Grove Village for fiscal year ending April 30, 2018. A motion was made by Trustee Molloy and seconded by Trustee Moody to adopt the MCR as prepared. Motion carried unanimously by voice vote. Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2019 Cost of Living Adjustments as reflected in the Treasurer's Report (see attached) as calculated by Elk Grove Village. A motion was made by Trustee Walsh and seconded by Trustee Moody to approve the 2019 Cost of Living Adjustments as required by statute and calculated by Elk Grove Village. Motion carried unanimously by voice vote. NEW BUSINESS: There was no new business presented at this time. ATTORNEY'S REPORT — REIMER & DOBROVOLNY PC: Annual Independent Medical Evaluation — Carl Sabo: The Board noted that Carl Sabo attended his annual independent medical examination and it was determined that he remains disabled at this time. A motion was made by Trustee Walsh and seconded by Trustee Moody to continue the non -duty disability benefits of Carl Sabo based on a finding that he remains disabled and subject to further annual examinations until age 50. Motion carried unanimously by voice vote. Application for Non -Duty Disability Benefit — Miguel Mosqueda: The Board noted that Attorney Reimer is awaiting one additional medical record before scheduling him for his three independent medical examinations. Trustee Walsh informed the Board Miguel Mosqueda is applying for a light duty position with the Village and further discussion will be held at the next scheduled meeting to determine if he will continue or withdraw his application for non -duty disability benefits. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND (CONTINUED): Application for Membership — Brian Ahsell: The Board discussed conditional new hire Brian Ahsell and his 12 years of service with the Champaign Police Department. Further discussion will be held at the next scheduled meeting. 4of19 The Board discussed Trustee meeting attendance via teleconference. The Board will contact Attorney Reimer regarding compliance of Trustee attendance and further discussion will be held at the next scheduled meeting. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Molloy and seconded by Trustee Moody to adjourn the meeting at 6:43 p.m. Motion carried unanimously by voice vote. The next regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees will be held on Wednesday, July 10, 2019 at 5:30 p.m. Respectfully submitted, Board President or Secretary Minutes approved by the Board of Trustees on Minutes prepared by Liz Failing, Pension Services Administrator, Lauterbach & Amen, LLP 5of19