Minutes - 05/01/2007 - Police Pension Fund BoardMINUTES OF THE MAY 1, 2007 REGULAR MEETING
OF THE BOARD OF TRUSTEES OF THE OAK BROOK
POLICE PENSION FUND APPROVED AS WRITTEN
ON JULY 25, 2007.
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 7:00 p.m. in the Upper Level
Conference Room of the Butler Government Center, 1200 Oak Brook Road,
Oak Brook, IL.
2. ROLL CALL
President Birdsall called the roll with the following persons
PRESENT: President Robert Birdsall, Vice President Michael Hall, Secretary
Alan Feldman and Trustees Richard Badowski and Susan
Templeton.
ABSENT: None.
IN ATTENDANCE: Darrell J. Langlois, Finance Director; Richard J. Reimer,
Richard J. Reimer & Associates; Tom Sawyer Executive Vice
President and Terese Krafcheck, Vice President, MB Financial.
3. APPROVAL OF MINUTES
a. Regular Board Meeting Minutes of February 6, 2007
Motion by Trustee Badowski, seconded by Secretary Feldman, to approve the
Minutes of the Regular Meeting of February 6, 2007 as presented. VOICE
VOTE: Motion carried.
4. CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will
be enacted in one motion.
Motion by Vice President Hall, seconded by Trustee Badowski, to approve the
Consent Agenda and authorize expenditures as presented. ROLL CALL
VOTE:
Ayes: 5 - President Birdsall, Vice President Hall, Secretary Feldman and
Trustees Badowski and Templeton.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
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a. Approval of January 1 -31, 2007 checks #3362 -3370 and #6465 -6484 in the
total amount of $114,939.05
b. Approval of February 1 -28, 2007 checks #3375 -3382 and #6486 -6506 in
the total amount of $116,022.45
c. Approval of Board Attorney Atwell's Invoices in the total amount of
$2,923.75
d. Approval of IPPFA (Illinois Public Pension Fund Association) Membership
Fees in the amount of $750.00
e. Approval of Pension Clerk hours from March thorugh April, 2007 in the
total amount of $80.21
5. ITEMS REMOVED FROM CONSENT AGENDA - None presented.
6. UNFINISHED BUSINESS
a. Discussion of Donald Malec's Duty Disability Application
President Birdsall explained that Applicant Malec had requested via e -mail to
him that the Board of Trustees consider two of his attending physicians to
expedite the process of his application and to reduce costs of the Board's
required medical examination of his application for duty disability.
Board Attorney Richard Reimer explained to the Board that Officer Malec is
asking to accept two of his three attending physicians in this matter.
Attorney Reimer indicated, according to State Statute, that the Board is
required to have three certificates of disabilities by physicians regarding a
disability. He recommended that the Board choose three independent
physicians that would give an unbiased opinion of his disability. He noted
that Applicant Malec has numerous physicians that as the Board's Attorney,
he must receive their medical records before he is able to proceed with the
process which will take time. He requested ,a copy of the e -mail from
Applicant Malec regarding his request as he will make it a part of the
administrative record. He recommended writing the applicant a letter
indicating that the Board considered his request but that the Board will
evaluate the duty disability application by their appointed physicians.
Motion by Trustee Badowski, seconded by Trustee Templeton, to authorize
Board Attorney Reimer to contract with INSPE to select three physicians for
Donald Malec's duty disability application. ROLL CALL VOTE:
Ayes: 5 - President Birdsall, Vice President Hall, Secretary Feldman and
Trustees Badowski and Templeton.
Nays: 0 - None.
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6. a.
Absent: 0 -None. Motion carried.
b. Ratification of telephone poll approval of three Board appointed Physicians
— Mucha Disability Application
President Birdsall explained that the Board was previously contacted
regarding utilizing three physicians for the medical examination of duty
disability applicant Randy Mucha as recommended by Board Attorney
Charles Atwell.
Motion by Vice President Hall, seconded by Trustee Badowski, to ratify the
approval of three Board appointed physicians Dr. Conroe, Dr. Harris and Dr.
Rigaud for the Randy Mucha Disability Application ROLL CALL VOTE:
Ayes: 5 - President Birdsall, Vice President Hall, Secretary Feldman and
Trustees Badowski and Templeton.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
c. Approval of Actuarial Study of The Fund
Finance Director Langlois explained that the investment data was updated
since the last meeting. The Pension Board had questioned the salary increase
assumption used in the study and although in the beginning the salary
increases are larger than 5.25 %, based on projections using current Village
practices, a 5.25% projected salary increase for long term was reasonable and
recommended that the Board adopt the final Actuarial Study and request a
Village contribution of 18.53% of payroll retroactive to January 1, 2007.
Secretary Feldman requested that Actuary Timothy Sharpe provide the Board
with a list of the funds he processes and how Oak Brook compares with them
in funding assumptions. Secretary Feldman recommended that Actuary
Sharpe include this next year with his study.
Motion by Secretary Feldman, seconded by Trustee Badowski, to adopt the
final Actuary Study of The Fund and request a Village contribution of
18.53% of payroll retroactive to January 1, 2007. ROLL CALL VOTE:
Ayes: 5 - President Birdsall, Vice President Hall, Secretary Feldman and
Trustees Badowski and Templeton.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
d. Approval of Dr. Moisan's Certificate of Disability — Michael Ciolino
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6. d.
President Birdsall noted that the corrected Certificate of Disability was not
received in time for the meeting and this agenda item will be continued to the
next Board meeting.
7. NEW BUSINESS
a. MB Financial Investment Management Presentation
Tom Sawyer, MB Financial, gave the investment management presentation
of The Fund. The value added from investments for the first quarter of 2007
was $602,046. The money market return for the first quarter was 1.26 %,
fixed income return 1.63 %, equity return 2.21% with a total account return of
1.90 %. Since inception the annual long term portfolio performance was
6.48 %, stocks 5.95 %, bonds 5.59% and T -bills 3.63 %. The current portfolio
allocations for the money market are 1%, for fixed income securities 54%
and equity securities 45 %. The equity sector allocations for large cap US
stocks are 61%, small cap US stocks 18 %, International stocks 16% and 5%
REIT Fund.
He indicated since the Sudan Act was ruled unconstitutional that there are
some funds they recommend may need to be changed. SB769 is an
amendment to the Illinois Pension Code to correct some of the deficiencies in
the Sudan Act that were ruled unconstitutional. It is now in the Rules
Committee at this time and the Board should wait to see what happens. He
suggested that the Board may have to reassess the Brandywine Blue Fund
and TCW Diversified Value Fund once the legislation becomes law.
Secretary Feldman asked, if the percentage of the portfolio could be listed for
each fund to better understand the breakdown of The Fund. Mr. Sawyer
indicated this could be done.
b. Approval of Investment Transactions
Motion by Secretary Feldman, seconded by Trustee Templeton, to approve
the investment transactions indicated on Tab 5 of MB Financial's Investment
Performance Report from January 1, 2007 through March 31, 2007 as
presented. ROLL CALL VOTE:
Ayes: 5 - President Birdsall, Vice President Hall, Secretary Feldman and
Trustees Badowski and Templeton.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
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7. c. Discussion and Possible Approval of Pension Clerk Salary Increase
Finance Director Langlois remarked that the 2007 Salary Plan was approved
by the Village Board of Trustees with a 3.8% salary increase. Clerk
Gonnella's present salary is $24.68 an hour in accordance with the
secretary's range in the Plan. If the Board wishes to approve the salary
increase, her salary would be $25.62 an hour.
Motion by Vice President Hall, seconded by Secretary Feldman, to approve
the pension clerk's salary from $24.68 to $25.62 an hour retroactive to
January 1, 2007. ROLL CALL VOTE:
Ayes: 5 - President Birdsall, Vice President Hall, Secretary Feldman and
Trustees Badowski and Templeton.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
8. INFORMATION AND UPDATES
President Birdsall reminded the Board members of the annual membership
meeting of the Pension Fund scheduled for May 15, 2007 at the Hyatt Lodge in
Oak Brook.
He further noted that Alan Feldman's term of office expires this month.
Secretary Feldman indicated that he would be willing to continue serving on the
Board.
President Birdsall asked for dates of the next quarterly meeting in July. He
suggested July 23rd with a backup date of July 24tH
9. ADJOURNMENT
Motion by Secretary, seconded by Trustee Badowski, to adjourn the meeting at
8:15 p.m. VOICE VOTE: Motion carried.
ATTEST:
s \Alan Feldman
Secretary
s \Linda K. Gonnella
Recording Secretary
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