Minutes - 08/15/2006 - Police Pension Fund BoardMINUTES OF THE AUGUST 15, 2006 SPECIAL
MEETING OF THE BOARD OF TRUSTEES OF THE
OAK BROOK POLICE PENSION FUND APPROVED AS
WRITTEN ON OCTOBER 26, 2006.
1. CALL TO ORDER
For the record, the quarterly meeting of July 24, 2006 was canceled due to a
lack of a quorum and rescheduled to a Special Meeting on August 15, 2006.
The Special Meeting of the Board of Trustees of the Oak Brook Police Pension
Fund was called to order by President Birdsall at 7:10 p.m. in the Upper Level
Conference Room of the Butler Government Center, 1200 Oak Brook Road,
Oak Brook, IL.
2. ROLL CALL
Recording Secretary Gonnella called the roll with the following persons
PRESENT: President Robert Birdsall, Secretary Alan Feldman and Trustee
Richard Badowski.
ABSENT: Vice President Hall.
IN ATTENDANCE: Darrell J. Langlois, Finance Director and Thomas Sawyer,
Executive Vice President, Oak Brook Bank.
3. APPROVAL OF MINUTES
a. Regular Meeting Minutes of April 27, 2006
Motion by Trustee Badowski, seconded by Secretary Feldman, to approve the
Minutes of the Regular Meeting of April 27, 2006 as presented. VOICE
VOTE: Motion carried.
b. Special Meeting Minutes of May 11, 2006
Motion by Secretary Feldman, seconded by Trustee Badowski, to approve the
Minutes of the Special Meeting of May 11, 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.
BOARD OF TRUSTEES OAK BROOK Page 1 of 5 August 15, 2006
POLICE PENSION FUND Minutes
11
5.
Motion by Trustee Badowski, seconded by Secretary Feldman, to approve the
Consent Agenda and authorize expenditures as presented. ROLL CALL
VOTE:
Ayes: 3 - President Birdsall, Secretary Feldman and Trustee Badowski.
Nays: 0 - None.
Absent: 1 - Vice President Hall. Motion carried.
a. Approval of March 1 -31, 2006 checks 43222 -3236 and #6268 -6286 in the
total amount of $108,681.22
b. Approval of April 1 -28, 2006 checks #3237 -3250 and #6287 -6298 in the
total amount of $107,787.19
c. Approval of May 1 -31, 2006 checks #2238, #3251 -3264 and #6306 -6324 in
the total amount of $112,631.68
d. Approval of June 1 -30, 2006 checks #3265 -3274 and #6325 -6342 in the
total amount of $106,839.11
e. Approval of Department of Financial & professional Regulation, Division
of Insurance annual compliance fee of $4,832.15
f. Approval of Hyatt Lodge Invoice in the amount of $1,136.00
g. Approval of Pension Clerk hours for the month of April through May, 2006
in the total amount of $160.42
ITEMS REMOVED FROM CONSENT AGENDA - None presented..
UNFINISHED BUSINESS
a. Discussion of Public Act 94 -0079 Prohibition of Sudan Investments
Tom Sawyer, Oak Brook Bank, indicated that the National Foreign Trade
Council filed a lawsuit on constitutional grounds that the State of Illinois cannot
conduct foreign policy. There are five pension funds that signed on as plaintiffs
in the lawsuit which means that if the lawsuit is presented to a federal judge, it
could be ruled for injunctive relief of all funds. The IPPFA held a seminar with
the NFTC and the sponsor of that bill, Senator Jacqueline Collins, requested to
speak to that issue at that meeting. Senator Collins met with the Executive
Board of the IPPFA after that and decided that the law does appear to be too
strict. She indicated she would be willing to consider language to be included
for revision at the fall veto session in November.
IPPFA has provided language via the Department of Insurance to Senator
Collins office which would exclude Article 3 and 4 funds. It would allow
Article 3 and 4 funds to own mutual funds. Relief should be available at some
point on this subject. He indicated that until such time as otherwise, Oak Brook
BOARD OF TRUSTEES OAK BROOK Page 2 of 5 August 15, 2006
POLICE PENSION FUND Minutes
6. a.
Bank will continue to do their best to comply to the law as it exists today. This
means there will be no new funds in what may be a forbidden entity and in
January Oak Brook Bank will certify to the Board that forbidden entities do not
represent more than 60% of the portfolio.
7. NEW BUSINESS
a. Oak Brook Bank Investment Management Presentation
Tom Sawyer gave the investment management presentation of The Fund. The
value added from investments for the second quarter of 2006 was ($225,271)
with a year to date total added to The Fund of $475,828. The money market
return for the second quarter was 1.17 %, fixed income return 0.09 %, equity
return -2.15% with a total account return of -0.90% for the second quarter. The
year to date total account return was 1.93 %. Since inception of Oak Brook
Bank as the investment manager of The Fund, the annual performance for 2006
was 6.11 %, stocks 4.79 %, bonds 5.86% and T -bills 3.49 %. He discussed the
the current portfolio allocations of the money market was 1%, fixed income
securities 56% and equity securities 43 %. The current allocations of the equity
sector for large cap US stocks was 58 %, small cap US stocks 21 %, international
stocks 16% and REIT Fund at 5 %. He noted possibly changing the small cap
US stock allocation from 21% to 19 %. He indicated that the allocations may
have to be adjusted in October or January with the present stock market and the
Bank may recommend $200,000 be adjusted from small to large cap stock
funds.
Secretary Feldman suggested the Board remain in compliance with the Public
Act and if Oak Brook Bank recommends adjusting from small to large cap
funds, that it be done in the Sudan free style and he asked that Oak Brook Bank
keep a record of the performance of that $200,000 versus having it being
invested in the returns of the other Fund's investments. He stated that if the
Board is required to make a decision in July of 2007, the Board would have a
record that they complied with the Public Act in 2006 and that it cost The Fund
a certain amount.
b. Approval of Investment Transactions
Finance Director Langlois asked Mr. Sawyer to respond to Michael Madigan's
request to the Pension Board of requiring certification of compliance with
Predatory Lending Laws. Mr. Sawyer explained that Oak Brook Bank has a
letter indicating they are not a predatory lender. He would certify a response to
the Board regarding this matter.
BOARD OF TRUSTEES OAK BROOK Page 3 of 5 August 15, 2006
POLICE PENSION FUND Minutes
7. b.
President Birdsall requested that this be placed on the Board's next quarterly
meeting to discuss this matter of requested compliance by House Speaker
Michael Madigan's office.
President Birdsall requested a motion to approve the investment transactions as
indicated on Tab 5 of the Oak Brook Bank's Investment Performance Report
from April 1, 2006 through June 30, 2006 as presented.
Motion by Secretary Feldman, seconded by Trustee Badowski, to approve the
investment transactions as indicated on Tab 5 of the Oak Brook Bank's
Investment Performance Report from April 1, 2006 through July 31, 2006 as
presented. ROLL CALL VOTE:
Ayes: 3 - President Birdsall, Secretary Feldman and Trustee Badowski.
Nays: 0 - None.
Absent: 1 - Vice President Hall. Motion carried.
c. Approval of Roy Lancor's Application for Pension Benefits
President Birdsall requested a motion to approve Roy Lancor's Application for
Members Pension Benefits from the Oak Brook Police Pension Fund with a
salary at date of retirement of $69,189 for twenty years of service, a monthly
pension of $2,882.88 with total contributions of $87,641.38.
Motion by Trustee Badowski, seconded by Secretary Feldman, to approve the
Application for Members Pension Benefits from the Oak Brook Police Pension
Fund with a salary at date of retirement of $69,189 for twenty years of service,
a monthly pension of $2,882.88 with total contributions of $87,641.38. ROLL
CALL VOTE:
Ayes: 3 - President Birdsall, Secretary Feldman and Trustee Badowski.
Nays: 0 - None.
Absent: 1 - Vice President Hall. Motion carried.
8. UPDATES AND INFORMATION
President Birdsall requested dates for the next quarterly meeting of the Pension
Board of Trustees. The Board requested Thursday, October 26th for their next
quarterly meeting.
9. ADJOURNMENT
Motion by Secretary Feldman, seconded by Trustee Badowski, to adjourn the
meeting at 8:00 p.m. VOICE VOTE: Motion carried.
BOARD OF TRUSTEES OAK BROOK Page 4 of 5 August 15, 2006
POLICE PENSION FUND Minutes
ATTEST:
Alan Feldman
Secretary
Linda K. Gonnella
Recording Secretary
BOARD OF TRUSTEES OAK BROOK Page 5 of 5 August 15, 2006
POLICE PENSION FUND Minutes