Minutes - 04/27/2011 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
April 27 2011
UNOFFICIAL UNTIL APPROVED AS WRITTEN
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON
1. CALL TO ORDER:
The Regular Meeting of the Board of Trustees of the Oak Brook Police Pension Fund was called to order
by Vice President Robert Birdsall at 7:30 p.m. in the Upper Level Conference 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: Vice President Robert Birdsall, Secretary Alan Feldman, Trustee Edward Caspers,
Trustee Hitesh Patel
ABSENT: President Vel Torlo
IN ATTENDANCE: Finance Director Sharon Dangles, Phillip Kosmala from Lowery Asset Consulting, LLC
and Robert Thompson from MB Financial
3. PRESIDENT'S COMMENTS:
4. APPROVAL OF MINUTES:
a. Approval of Board of Trustees Regular Meeting Minutes of February 16, 2011
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the Minutes of the
February 16, 2011 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 Trustee Caspers, seconded by Trustee Patel, to approve the Consent Agenda.
ROLL CALL:
Ayes: 4 — Trustee Caspers, Trustee Patel, Vice President Birdsall, Secretary Feldman
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried.
a. Approval of January 1 -31, 2011 checks in the total amount of $158,024.61
b. Approval of February 1 -28, 2011 checks in the total amount of $148, 329.76
c. Approval of March 1 -31, 2011 checks in the total amount of $147,588.76
d. Approval of Richard J. Reimer & Associates, LLC's invoices in the total amount of $3,752.15
e. Approval of Lauterbach & Amen, LLP's invoices 2010 Year End and January, 2011 in the total amount
of $1,825.00
f. Approval of Inspe Associates, Ltd. Invoice in the amount of $1,560.00
6. ITEMS REMOVED FROM CONSENT AGENDA: None
7. UNFINISHED BUSINESS:
a. Discussion of 2011 Actuarial Study
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 3 April 27, 2011
Finance Director Dangles explained that the Village Board decided to fund up to the 90% funding level and
the percent funded has increased from 71.8% in 2010 to 75.3% for 2011. She stated that the Pension
Fund is disbursing a check to the Village for over - payment to the Fund in regard to the percentages above.
Discussion regarding other states in relation to Illinois' funding of pension funds.
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the disbursement to
reimburse the Village for the amount they overpaid from January 1st of this year through April 27,
2011 in the amount of $55,301.73.
ROLL CALL:
Ayes: 4 — Trustee Patel, Vice President Birdsall, Secretary Feldman, Trustee Caspers
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried.
b. Discussion of Investment Policy
Phil Kosmala explained the drafted changes to the Investment Policy (in red text on the hand -out) paying
particular attention to Page 5 where an Investment Grade Corporate Debt item was added, and suggesting
a Normal Allocation of 20 %. Discussion ensued regarding the Range of Allocation amount and ability to
move from the Normal Allocation.
Robert Thompson discussed the portfolio allocation to equities and gave examples of other Funds' ratings.
Discussion ensued regarding corporate bonds.
Finance Director Dangles suggested amendments to the Indemnification section of the Investment Policy
as well as adding a sentence regarding mandatory trustee training.
Motion by Secretary Feldman, seconded by Trustee Caspers, to approve the changes to the
Investment Policy as amended.
ROLL CALL:
Ayes: 4 —Vice President Birdsall, Secretary Feldman, Trustee Caspers, Trustee Patel
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried.
C. Discussion of Trustee and Fiduciary Insurance Contract
Due to the Board only being in possession of a Fiduciary Insurance Application, this matter was tabled until
the next regular meeting. It was requested that the representative from Mesirow Financial provide a draft
Contract and attend the next regular meeting if available.
8. NEW BUSINESS
a. Lowery Asset Consulting, LLC /MB Financial Investment Management Performance Reports for First
Quarter, 2011
Phil Kosmala explained that it had been a pretty good quarter on the equity side, but bonds were relatively
flat. He went on further to discuss the April 30th compliance. He gave a quick take on the Executive
Summary and discussed in detail the first quarter of 2011.
Bob Thompson referred to MB Financial's Performance Report and discussed the restrictions of Illinois
municipalities, including not being able to go bankrupt, but having the ability to delay payments. He also
discussed Corporate Bonds in regard to the revised Statutes (hand -out) and the recent performance of
Corporate Bonds. Lengthy discussion ensued regarding same and also Treasury Bonds.
b. Approval of Investment Transactions (First Quarter, 2011)
Motion by Secretary Feldman, seconded by Trustee Patel, to approve the Investment Transactions
from January 1, 2011 through March 30, 2011.
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Minutes Page 2 of 3 April 27, 2011
ROLL CALL:
Ayes: 4 — Trustee Caspers, Trustee Patel, Vice President Birdsall, Secretary Feldman,
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried
c. Lauterbach & Amen, LLP Actuarial Proposal
Discussion ensued regarding the services of the current Actuary, Tim Sharpe. Finance Director Dangles
affirmed that the Police Pension Board is splitting the cost of his services with the Fire Pension Board and
the Village, with the Police Pension Board's share being approximately $2,400.00. Concern was
expressed about not increasing the costs. Finance Director Dangles suggested having Todd Schroeder,
from Lauterbach & Amen, attend the next meeting and explain their proposal.
d. Approval of Stephen E. Larson's Application for Members Pension Benefits Retirement Pension
Vice President Birdsall informed the Board that Steve Larson has already retired, but that he might return
on a short-term basis as a contract employee to maintain continuity if the current Police Chief leaves.
Discussion ensued regarding an individual drawing a pension and working full -time again at Oak Brook or
another department.
Motion by Trustee Caspers, seconded by Secretary Feldman, to approve Stephen Larson's
Application for Members Pension Benefits Retirement Pension.
ROLL CALL:
Ayes: 4 — Trustee Patel, Vice President Birdsall, Secretary Feldman, Trustee Caspers
Nays: 0 — None
Absent: 1 — President Torlo. Motion carried
e. Discussion of Disabled Peace Officer Recognition Day
Vice President Birdsall affirmed that there are four officers from Oak Brook who were awarded a line -of-
duty disability and it was agreed that these individuals be contacted regarding providing their information to
the Illinois Fraternal Order of Police.
9. INFORMATION & UPDATES:
a. Scheduling of third quarterly meeting in 2011:
Tentative Wednesday dates of: July 20th, July 27th, August 3rd
Agreement to set third quarterly meeting for 7:00 p.m. on Wednesday, July 27, 2011.
10. ADJOURNMENT:
Motion by Trustee Caspers, seconded by Trustee Patel, to adjourn the Board of Trustees of the Police
Pension Fund meeting at 9:20 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
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