Minutes - 02/03/2010 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
February 3 2010
UNOFFICIAL UNTIL APPROVED AS WRITTEN
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON May 5. 2010
1. CALL TO ORDER:
The Regular Meeting of the Board of Trustees of the Oak Brook Police Pension Fund was called to order
by President Birdsall at 7:03 p.m. in the Samuel E. Dean Board Room of the Butler Government Center,
1200 Oak Brook Road, Oak Brook, Illinois.
2. ROLL CALL:
The roll was called with the following persons
PRESENT: President Robert Birdsall, Vice President Vel Torlo, Secretary Alan Feldman, Trustee
Edward Caspers, Trustee Hitesh Patel
ABSENT: None
IN ATTENDANCE: Acting Finance Director Sharon Dangles, Alison Barrett from Lauterbach & Amen, LLP,
Phillip Kosmala and Jeff Grenchik from Lowery Asset Consulting, LLC
3. PRESIDENT'S COMMENTS:
4. APPROVAL OF MINUTES:
a. Approval of Board of Trustees Regular Meeting Minutes of October 21, 2009
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the Minutes of the October 21,
2009 Regular Board Meeting. VOICE VOTE: Motion carried.
5 CONSENTAGENDA:
All items on the Consent Agenda are considered to be routine in nature and will be enacted in one motion
Motion by Vice President Torlo, seconded by Trustee Patel, to approve the Consent Agenda.
ROLL CALL:
Ayes: 5 — Vice President Torlo, Secretary Feldman, Trustee Caspers, Trustee Patel, President Birdsall
Nays: 0 — None
Absent: 0 — None. Motion carried.
a. Approval of October 1 -31, 2009 checks in the total amount of $139,145.63
b. Approval of November 1 -30, 2009 checks in the total amount of $146,898.46
c. Approval of December 1 -31, 2009 checks in the total amount of $146,718.18
(above three items are contained on the last pages of Agenda Items 8.d.1., 2., 3.)
d. Approval of Lowery Asset Consulting, LLC's invoice in the amount of $7,000.00, dated December 17,
2009
e. Approval of Lauterbach & Amen, LLP's invoices in the total amount of $1,365.00, for October and
November, 2009.
f. Approval of Pension Clerk Kane's invoices in the total amount of $312.50
for the months of July through October, 2009 and January, 2010.
g. Approval of Contravisory Investment Management, Inc. invoice for the period October
through December 31, 2009 in the amount of $1,983.00.
6. ITEMS REMOVED FROM CONSENT AGENDA —None presented.
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 4 February 4, 2010
7. UNFINISHED BUSINESS
8. NEW BUSINESS
a. Lowery Asset Consulting, LLC /MB Financial Investment Management Performance Reports as of
December 31, 2009
Phil Kosmala stated that the fourth quarter and the end of the year was very good and pointed out a new
format in Section III of Lowery's report. He stated that at this point in time there are no concerns with any
of the managers.
b. Approval of Investment Transactions (fourth quarter, 2009)
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the Investment Transactions from
October 1, 2009 through December 31, 2009, per Section 4 of Lowery Asset Consulting, LLC Presentation.
ROLL CALL:
Ayes: 5 — Vice President Torlo, Secretary Feldman, Trustee Caspers, Trustee Patel, President Birdsall
Nays: 0 — None
Absent: 0 — None. Motion carried
c. Discussion and Approval of Lauterbach & Amen, LLP 2010 Contract for Services
Option A: One -Year Contract for the year 2010 — total annual fees in the amount of
$13,495.00
Option B: Three -Year Contract for the years 2010, 2011 and 2012 —total annual
fees in the amounts of $13,275, $13,650 and $14,025 respectively
Acting Finance Director Dangles explained that the Fund did not have an increase in fees for this past year;
Lauterbach & Amen, LLP is proposing a 5.3% increase for 2010. She discussed that going with the three
year contract, the increase will be 3.8% for 2010 and 2.7% for the years 2011 and 2012. She stated that
the fees listed on the contract letter regarding the Illinois Division of Insurance Compliance Report will be
excluded because it is optional with Lauterbach & Amen, LLP and is already performed by the Village's
auditors.
Motion by Trustee Patel, seconded by Vice President Torlo, to approve the Lauterbach & Amen, LLP
Three -Year Contract for Services for the years 2010, 2011 and 2012.
ROLL CALL:
Ayes: 5 — President Birdsall, Trustee Patel, Trustee Caspers, Secretary Feldman, Vice President Torlo
Nays: 0 — None
Absent: 0 — None. Motion carried
Allison Barret of Lauterbach & Amen, LLP stated they have a hotline system which the beneficiaries have
been informed about. She also explained that there is a new law regarding partial portability for an officer
who wants to transfer time from another police department wherein the officer could receive a pro -rated
credit. She stated that there is no statute of limitations on the time served.
d. Lauterbach & Amen, LLP Monthly Financial Report for Months Ending:
1. October 31, 2009
2. November, 30, 2009
3. December 31, 2009
e. Approval of 2010 Police Pension Increases
Allison Barrett of Lauterbach & Amen, LLP stated that they would now be providing this report for the Fund.
Acting Finance Director Dangles stated that the cost of living increases of 3% was included on this report
and on the January pension checks. Allison Barrett stated that pension recipients turning age 55 receive
3% compounded interest; duty and non -duty disability pension recipients turning age 60 receive 3%
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 4 February 4, 2010
increase on their original benefit; surviving spouses do not receive increases. Question raised about a
particular surviving spouse (Badowski) receiving a cost of living increase and Allison ? ? ?? agreed to check
on that.
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the 2010 Police Pension
Increases, with the Badowski increase to be reviewed.
ROLL CALL:
Ayes: 5 — Vice President Torlo, Secretary Feldman, Trustee Caspers, Trustee Patel, President Birdsall
Nays: 0 — None
Absent: 0 — None. Motion carried
f. Discussion regarding discrepancies in Pension Recipient Benefit Calculation
Allison Barrett stated that when Lauterbach reviewed all of the benefit calculations, there was a variance on
Susan Srch; she stated that it was very small and she was underpaid a minor sum. She stated that
pension recipient receive a Basic Information Worksheet. She further stated that Lauterbach can run
estimates on any active member of the Fund who is interested in retirement calculations.
Motion by Trustee Patel, seconded by Vice President Torlo, to approve the adjustments to Susan Srch's
pension calculations as adjusted.
ROLL CALL:
Ayes: 5 — President Birdsall, Trustee Patel, Trustee Caspers, Secretary Feldman, Vice President Torlo
Nays: 0 — None
Absent: 0 — None. Motion carried
g. Discussion of 2010 Actuarial Study
Acting Finance Director Dangles stated she had talked with Actuary Tim Sharpe and also the Village
Manager regarding Mr. Sharpe's Actuarial Valuation Results. She stated that they kept the interest
assumptions at seven percent across the board and that they are presenting to the Board of Trustees three
scenarios: salary at 4.25 %, salary at 4% and salary at 3.75 %. Secretary Feldman suggested 6.75% for
interest and 4% salary, but if drop one valuation by a half, should be consistent with the other valuation.
President Birdsall stated that very few people will reach the 4% level. Discussion ensued regarding the
actuarial valuations and the current funding. Secretary Feldman and Trustee Patel would like to have Mr.
Sharpe explain the report; President Birdsall agreed that Mr. Sharpe could be at the next meeting. Acting
Finance Director Dangles stated that they would probably go to the Board of Trustees with the Pension
Fund Board's recommendation in February.
h. Designation of Freedom of Information Officer
Discussion regarding what individuals should act as Freedom of Information Officers for the Pension Fund
Board and that these individuals designated should have easy access to pension files.
Motion by Secretary Feldman, seconded by Trustee Caspers, to designate President Birdsall, Vice
President Torlo and Rose Kane as Freedom of Information Officers.
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 3 of 4 February 4, 2010
ROLL CALL:
Ayes: 5 — Vice President Torlo, Secretary Feldman, Trustee Caspers, Trustee Patel, President Birdsall
Nays: 0 — None
Absent: 0 — None. Motion carried
9. INFORMATION AND UPDATES:
a. Scheduling of first quarterly meeting in 2010:
Agreement to set first quarterly meeting for 7:00 p.m. on Wednesday, May 5, 2010.
10. ADJOURNMENT:
Motion by Trustee Patel, seconded by Trustee Caspers, to adjourn the Board of Trustees of the Police
Pension Fund meeting at 8:37 p.m. VOICE VOTE: Motion carried.
ATTEST:
Alan Feldman /s/
Alan Feldman, Secretary
Board of Trustees of the Police Pension Fund
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 4 of 4 February 4, 2010