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HomeMy WebLinkAbout11/22/1983 FFPB Minutes Special MeetingMINUTES OF THE SPECIAL MEETING OF THE MOUNT PROSPECT FIREMENS' PENSION FUND BOARD TUESDAY, NOVEMBER 22, 1983 CALL TO ORDER President Pairitz called the Special Meeting of the Mount Prospect Firemens' Pension Fund Board to order at 8:07 A.M. ROLL CALL Present upon roll call: President Lawrence A. Pairitz, Fire Chief Richard L. Jesse, Treasurer Del Ulreich, Firefighter Lt. Donald Barra, Firefighter Carol A. Fields, Village Clerk Ron Olson, Firefighter Absent: Carolyn H. Krause, Mayor George Cullens, Retired Firefighter Village Attorney INDEPENDENT ACTUARIAL EVALUATION President Pairitz explained that recent legislation has given the individual pension funds the authorization to conduct audits of their funds to determine the level of funding. It was noted that the State of Illinois establishes the amount necessary for funding on a state wide basis, however, the acLual percentage of funding for an individual pension fund diffe s greatly depending on investment returns and contributions by both the membership and the municipality. It was the opinion of the board members that the Mount Prospect Firemens' Pension Fund is approximately 115% funded. Two proposals were submitted to conduct an audit on the Fund. The proposals were submitted by Employer Plan Administrators and Consultants Co. (EPACO) and by A. S. Hansen, Inc., both companies have experience in conducting this type of audit. David Jepsen, Director of Management Services, stated that he had knowledge of A. S. Hansen, Inc. and recommended the Board accept their quote of up to $2,500 for the audit. It was stated that the results would be submitted to the Board prior to the Village filing the annual levy for 1984-85. Depending on the result of this special audit, determining if the Firemens' Pension Fund is indeed totally funded, this action could result in a savings to the Village of approximately $200,000. Del Ulreich, seconded by Ron Olson, moved to authorize A. S. Hansen, Inc., 1080 Green Bay Road, Lake Bluff, Ill. 60044, to conduct an actuarial valuation and assumption study of the Mount Prospect Firemens' Pension Fund at a cost not to exceed $2,500, which cost shall be borne by the Pension Fund. Upon roll call: Ayes: Unanimous Motion carried. a Page Two Mr. Jepsen recommended the Pension Board authorize the purchase of 'strip bonds'. These bonds have an average of maturing in 10 years. It was suggested that only 25% of the available funds be placed in strip bonds. Del Ulreich, seconded by Lt. D. Barra, moved to authorize the purchase of strip bonds as stated. Upon roll call: Ayes: Unanimous Motion carried. ADJOURNMENT Richard Jesse, seconded by Lt. D. Barra, moved to adjourn the meeting. Upon roll call: Ayes: Unanimous Motion carried. The meeting was adjourned at 9:12 A.M. Carol A. Fields Secretary