Minutes - 03/06/2014 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
March 6, 2014
UNOFFICIAL UNTIL APPROVED AS WRITTEN
OR AS AMENDED BY BOARD OF TRUSTEES OF THE
POLICE PENSION FUND ON April 21, 2014
1. CALL TO ORDER:
The Special Joint Meeting of March 6, 2014 of the Board of Trustees of the Oak Brook Police Pension
Fund and Firefighters Pension Fund was called to order by Vice President Alan Feldman at 3:13 p.m. in the
West Wing 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 Alan Feldman, Secretary Edward Caspers, Trustee Hitesh Patel, Trustee
Benjamin Kadolph
ABSENT: President Vel Torlo (arrived after Roll Call)
IN ATTENDANCE: Todd Schroeder from Lauterbach & Amen, Finance Director Sharon Dangles,
Firefighters Pension Board Member Tim Schlindwein, Police Pension Clerk Rose Kane
Finance Director Dangles explained that the Village has hired two actuaries, Jason Franken of Foster &
Foster to do the Police Pension and Janet Eisenberg to do Firefighters Pension.
Todd Schroeder of Lauterbach & Amen provided a copy of the actuarial assumptions and the actuarial
report. Discussion ensued regarding same. Mr. Schroeder referred to page 4 of the Actuary Report and
stated that the prior contribution requirement was about $1.128 million and $45,000 was anticipated in
increases to come through; he added that the salary increases were less than expected, so there was a
decrease in the contributions as well as demographic changes such as, new hires. Mr. Schroeder referred
to page 7 of the report which covers an 8-year history of the market value of assets. It was requested that
a quick explanation be prepared regarding anything extraordinary which happened to cause the changes
between the years 2008 and 2009, for example. Discussion ensued regarding the changes, which included
previous reports being prepared by Tim Sharpe and then having to use the Department of Insurance’s
report for 2009, which may account for the differences, as well as the change to an 84-hour pay period in
the union contract. Mr. Schroeder agreed to obtain Mr. Sharpe’s report from 2009 and update those
figures. He referred to page 2 of the report, specifically the current valuation at $1.197 million and then
brought attention to page 5 at the total market value – currently at $32.574 million. It was suggested that
the report should include an explanation of how the assumptions are arrived at such as, the blending of the
rates of return used to make the assumptions, and an enhancement of the sections of the report to better
explain the assumptions.
Mr. Schroeder exited the meeting at approximately 3:44 p.m.
3. PENDING BUSINESS:
a. Discussion regarding responses received regarding Request for Proposal for Investment Consultants
Discussion ensued regarding responding firms and it was remarked that some firms want total control of
the money instead of acting as advisors.
President Torlo entered the meeting at approximately 3:48 p.m.
It was also discussed when a decision should be made. It was suggested that Credit Suisse and
Vanguard could possibly be eliminated. Trustee Patel discussed several of the firms and identified which
are proactive, and which are global firms, etc. Firefighters Pension representatives in attendance
discussed Investment Performance Services which handles their investment consulting. There was a
consensus to hold off on any decisions until Trustee Patel could prepare an analysis of the respondents. It
was expressed that a local firm may be preferable and for all to think about what they want from an
investment firm and whether to retain a separate custodian for fixed income.
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 2 March 6, 2014
There was short recess.
4. NEW BUSINESS:
a. Pension Trustee Training
ROLL CALL FOR TRAINING SESSION:
The roll was called with the following persons
PRESENT: President Vel Torlo Vice President Alan Feldman, Secretary Edward Caspers, Trustee Hitesh
Patel, Trustee Benjamin Kadolph, Finance Director Sharon Dangles, Firefighters Pension
Board Trustees: Tim Schlindwein, Mark Fleishman, John Fagan, George Kouba, Police
Pension Clerk Rose Kane
Pension Trustee Training was conducted including the following topics:
o Asset Allocation
o Active / Passive Strategies
Motion by President Torlo, seconded by Secretary Caspers, to adjourn for a dinner break at 6:16
p.m. VOICE VOTE. Motion carried.
Motion by Trustee Kadolph, seconded by Trustee Patel, to reconvene the training session at 6:52
p.m. VOICE VOTE. Motion carried.
5. ADJOURNMENT:
Motion by Trustee Kadolph, seconded by Vice President Feldman, to adjourn the Special Joint
Meeting of the Board of Trustees of the Police Pension Fund and Firefighters Pension Fund at 7:56
p.m. VOICE VOTE: Motion carried.
ATTEST:
Edward J. Caspers /s/
Edward Caspers, Secretary
Board of Trustees of the Police Pension Fund
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 2 March 6, 2014