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HomeMy WebLinkAbout01/20/1986 FFPB MinutesMINUTES OF THE REGULAR MEETING OF THE MOUNT PROSPECT FIREMENS PENSION FUND BOARD JANUARY 20, 1986 CALL TO ORDER In the absence of the President, the Secretary called the meeting to order at 8:20 AM Nominations were taken for President Pro -Tem. Ron Olsen, seconded by Alan Labbe, made a motion for Richard Jesse to be the President Pro -Tem. There being no further nominations, the motion was called. Upon roll call: Ayes: Unanimous Motion carried. ROLL CALL Present upon roll call: Richard L. Jesse, Treasurer Carolyn H. Krause, Mayor Ronald Olsen, Firefighter Alan Labbe, Firefighter (arrived late) Carol A. Fields, Village Clerk/Secretary Del Ulreich, Firefighter (arrived late) Absent: Lawrence A. Pairitz, Fire Chief/President Del Ulreich, Firefighter (arrived late) Village Attorney At the request of the President Pro -Tem, the Actuarial Report listed on the agenda under Old Business was brought up as the first order of business. David Jepson, Finance Director, brought up the Actuarial Report conducted by A. H. Hansen, Inc. This report on the financial condition of the Firemen's Pension Fund indicates that the Fund has a level of funding of 191.6%. The average funding throughout the State of other Firemen's Pension is 60 - 65%. State law requires total funding by the year 2020, which indicates Mount Prospect meets the law as of this date. Mr. Jepson stated that inasmuch as the Fund is in such good standing, the Village Board was once again this year able to abate that portion of the real estates designated for the Pension Fund. The amount abated was $245,000. The average annual interest rate on the investments is 11.5%. Based on Firemen's Pension Fund Meeting January 20, 1986 Page 2 of 3 the history and figures provided, it was determined that projected total of the Firemen's Pension Fund in 1996 would be $22,000,000. Mr. Jepson also stated that given the responsibilities involved and the expertise necessary to make proper investments of the present $10,000,000 portfolio, it would be advisable to retain a financial advisor to recommend investments. It was anticipated that such an advisor would cost approximately $500 per month, however, with proper investments the Fund would benefit greatly and more than likely make more than an advisor would cost. It was the majority consensus of the Board that Mr. Jepson should look into the availability of such a financial advisor for the Fund. APPROVAL OF MINUTES Carolyn Krause, seconded by Ron Olsen, moved to approve the minutes of the regular meeting of the Mount Prospect Firemens Pension Fund Board held October 21, 1985. Upon roll call: Ayes: Jesse, Olsen, Labbe, Krause, Fields, Nays: None Motion carried. TREASURERS REPORT Richard Jesse presented the Treasurers Report, noting that the total par value of the Fund is $9,672,099.37. The various investments were explained. Ron Olsen, seconded by Carolyn Krause, moved to accept the Treasurers Report as presented. Upon roll call: Ayes: Jesse, Olsen, Labbe, Krause, Fields, Nays: None Motion carried. Del Ulreich arrived at this point. Firemen's Pension Fund January 20, 1986 Page 3 of 3 COMMITTEE REPORTS Medical Committee: No report Finance Committee: No report OLD BUSINESS NEW BUSINESS Richard Jesse distributed the annual report of contributions by each member of the Fund. Carol Fields, Secretary, stated that Robert Fend ius would be applying for retirement within the next few months. Documents on file indicate that an opinion was received. from the Department of Insurance in 1964 that inasmuch as Firefighter Fendius had been a member.of the Fire Department for approximately two years, left for a year and then was hired again - having left his contributions in the Fund, that he was entitled to count the 2 years of previous employment when calculating years of service. The Secretary asked if the Board would accept the opinions of the Department of Insurance or, in an effort to save time and not hold up the pension when requested, if a new opinion would be required. It was the opinion on the members that the documents on file would be sufficient. It was also stated over a year ago the Department of Insurance filed action against the Pension Fund on the eligibility of Pau -1 -Watkins to be a member of the fund, due to his age when originally hired.by the Forest River Protection District, which was subsequently annexed to the Village. A Court Order governing that annexation in 1971 made provisions for the Village to retain Paul Watkins as a firefighter in good standing. The Village filed a response to the State's action stating that the Fund maintains Paul as a member in good standing. Since that time the State has not issued their findings on the matter. Paul Watkins is now recovering from a heart attack and that if a disability pension is requested, the Board should be aware of the lack of action on the part of the Department of Insurance ADJOURNMENT Del Ulreich, seconded by Ron Olsen, moved to adjourn the meeting. Upon roll call: Ayes: Unanimous Motion carried. The meeting was adjourned at 8:58 AM. Carol A. Fields Secretary