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Home My WebLink About10/29/2013 PPB MinutesNOTICE OF REGULAR MEETING OF THE BOARD OF TRUSTEES MOUNT PROSPECT POLICE PENSION FUND The Board of Trustees of the Mount Prospect Police Pension Fund will conduct a regular meeting on TUESDAY, JANUARY 28, 2014 at 2:00 PM at the Mt. Prospect Village Hall, 3rd Floor HR Conference Room, 50 S. Emerson Street, Mt. Prospect, IL for the purposes set forth in the following Agenda: AGENDA 1) Call to Order 2) Roll Call 3) Public Comment (limited to 3 minutes per comment) 4) Approval of Meeting Minutes a) October 29, 2013 Meeting b) Review of any Closed Session Meeting Minutes 5) Treasurer's Report — David Erb a) Quarterly Financial Report b) Presentation and Approval of Bills c) Other Additional Bills, if any d) Review & Approve 2014 Cost of Living Adjustments for Pensioners 6) Investment Reports a) Portfolio Review — Mesirow Financial - Segall Bryant Hamill b) Portfolio Review - Sawyer Falduto Asset Management c) Possible Sales, Purchases or Transfers of Funds within the Portfolio d) Review/Update Investment Policy 7) Old Business a) Review designation of FOIA Officer of the Pension Fund b) Update Status of Affidavits of Continued Eligibility c) Accept New Applicants into the Pension Fund d) Status of Disability Application- Ronald Kadzielawski e) Status of Disability IME's for Michael Rose fl Status of Trustee Training g) Procedures for Transferring Military Creditable Service 8) New Business a) Review Trustee Term Expirations and Election Procedures b) Pensioner Death — Surviving Spouse Jacqueline Muller c) Renewal of Lauterbach & Amen Engagement Letter for administrative services 9) Attorney's Report a) Legal Updates 10) Adjournment Posted on: 1 2014 by: Page 1 of 13 MINUTES OF REGULAR MEETING OF THE BOARD OF TRUSTEES MOUNT PROSPECT POLICE PENSION BOARD TUESDAY, OCTOBER 29, 2013 A regular meeting of the Mount Prospect Police Pension Fund was called to order at 2:05 pm on Tuesday, October 29, 2013, at 50 S. Emerson Street, Mount Prospect, IL for the purpose of conducting regular business. PRESENT: Trustees Tony Halachoulis, Tom Hoskinson, Larry Rosenbarski, David Erb and Dennis Saviano ABSENT: None ALSO PRESENT: Tom Sawyer and John Falduto, Sawyer Falduto LLC; Richard Reimer, Reimer & Karlson, LLC; Barbara Utterback, Lauterbach & Amen, LLP. PUBLIC COMMENT: None APPROVAL OF MINUTES: The minutes from the July 30, 2013 meeting were reviewed. A motion was made by Trustee Saviano and seconded by Trustee Halachoulis to approve the minutes as written. Motion carried unanimously by voice vote Review of Closed Executive Session Meeting Minutes: Mr. Reimer will determine what closed session meeting minutes are available for review and possible release. This will be addressed at the next regular meeting. TREASURER'S REPORT: Quarterly Financial Report: The Board reviewed the 6/30/13 Financial Statement that was distributed and reviewed at the last quarterly meeting, indicating an ending market value of $51,063,650. A motion was made by Trustee Halachoulis and seconded by Trustee Saviano to accept the report as presented and ratify approval of the disbursements made in the amount of $35,077.09. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None The Board reviewed the Financial Statement prepared by Treasurer Dennis Erb for the quarter ending 9/30/13. The total market value of the fund as of 9/30/13 is $53,545,605. The unrealized loss is $815,421 for the quarter. A list of all vendor disbursements was included in the report, totaling $27,318.20. The report also included a summary of all investment activity for the quarter, and a detailed schedule of investment holdings as of 9/30/13. A motion was made by Trustee Rosenbarski and seconded by Trustee Hoskinson to accept the report as presented. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None Trustee Erb stated that he will review the current fiduciary liability insurance policy to determine if there is a deductible. Trustee Erb reported that Tim Sharpe is preparing the final Actuarial Report and he will now include using the 2000 Mortality table, raising the tax levy contribution by 11% over last year's amount. The report is based on using entry age normal methodology and 100% funding. The cost of the actuarial report will be split between the Pension Fund and the Village. Page 2 of 13 Mount Prospect Police Pension Fund Minutes of Meeting — October 29, 2013 Page 2 of 4 Additional Bills: Lauterbach & Amen PSA Services: Lauterbach & Amen invoices for PSA Services were presented for approval totaling $11,250 for services rendered through September 2013. A motion was made by Trustee Saviano and seconded by Trustee Halachoulis to approve payment of the L &A invoices for a total amount of $11,250. AYES: Trustees Halachoulis, Rosenbarski, Hoskinson and Saviano NAYS: None ABSENT: Trustee Erb (stepped out of the meeting temporarily) INVESTMENT REPORTS: Mesirow Financial — Segall Bryant Hamill: No representatives were present and no report was available. Sawyer Falduto Asset Management: The Investment Policy Guidelines for the equity portfolio were reviewed, along with the second quarter investment return. The ending market value of the portfolio is $28,751,667 with an investment gain of $1,866,321 for the quarter. The total account investment return, net of fees, is 9.90 %. The year -to -date return is 19.52% for a gain of $4,605,782. The individual performance of the funds were reviewed, along with the transaction report and investment fees. Sawyer Falduto provided alternatives to the small and mid -cap mutual funds that have been underperforming, reviewed the long term performance of the fund and the transaction report. No asset allocation adjustments are recommended at this time. A motion was made by Trustee Rosenbarski and seconded by Trustee Erb to accept the Sawyer Falduto Investment Report. Motion carried unanimously by voice vote. Review /Update Investment Policy: There were no recommendations for changes at this time. OLD BUSINESS: Review designation of FOIA Officer of the Pension Fund: The Board stated that Lisa Angel is currently the FOIA Officer for the Village, and the Board will determine by the next meeting if she is willing to be the FOIA Officer for the Pension Fund as well. Trustee Halachoulis stated that he completed his Open Meetings Act training, and other Trustees will be completing their training in the near future. Update Status of Active Member File Records & Affidavits of Continued Eligibility: Trustee Erb will furnish Lauterbach & Amen with the current addresses for retirees so the Affidavits of Continued Eligibility can be mailed to all current retirees. A summary of the active member files was provided to the Board for follow up. Accept New Applicants into the Pension Fund: A motion was made by Trustee Halachoulis and seconded by Trustee Rosenbarski to approve all new hires in 2013, retroactive to the beginning of the year, subject to a written application to the Pension Fund. Motion carried unanimously by voice vote. Status of Trustee Training: Trustees were reminded to submit any certificates of continuing education training to Lauterbach & Amen for recordkeeping. NEW BUSINESS: Approve and Schedule Independent Medical Exams for Applicable Disability Pensioners: Mr. Reimer provided the following update: Officer Rose: Disability is pending; physician examinations will be scheduled. Page 3 of 13 Mount Prospect Police Pension Fund Minutes of Meeting — October 29, 2013 Page 3 of 4 Joseph Favia: The medical report from Dr. Malik was received and Officer Favia remains disabled. A motion was made by Trustee Hoskinson and second by Trustee Rosenbarski to continue disability benefits until further examinations. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None James Czarnecki: The medical report from Dr. Malik was received and Officer Czarnecki remains disabled. A motion was made by Trustee Hoskinson and second by Trustee Rosenbarski to continue disability benefits until further examinations. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None Ronald Kadzielawski Disability Application: The Board noted that an Application for Disability was received from the attorney for Ronald Kadzielawski. Mr. Reimer stated that he awaiting signed authorizations for medical information and once received, he will schedule the appointments with three physicians. A motion was made by Trustee Hoskinson and seconded by Trustee Rosenbarski to authorize Mr. Reimer to schedule appointments with INSPE physicians. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None Actuarial Report and Adopt Tax Levy Request: A summary of the actuarial report from Tim Sharpe was presented to the Board by Trustee Dave Erb. A motion was made by Trustee Halachoulis and seconded by Trustee Rosenbarski to accept the actuarial report prepared by Tim Sharpe and make a tax levy recommendation to the Village of Mount Prospect in the amount of $2,922,979 for the tax levy payable in 2014. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None The Board reviewed the Municipal Compliance Report prepared by Lauterbach & Amen. A motion was made by Trustee Erb and seconded by Trustee Saviano to accept the report and authorize the President and Secretary to sign the Municipal Compliance Report. AYES: Trustees Halachoulis, Rosenbarski, Erb, Hoskinson and Saviano NAYS: None ABSENT: None Establish meeting dates for 2014: The Board established the regular meetings for 2014 as follows: January 28, April 29, July 29 and October 28. All meetings will be held at 2:00 pm at the Village of Mount Prospect, 50 South Emerson Street. Trustee Erb stated that he received a question from an active member regarding the purchase of military creditable service. This will be reviewed at the next meeting. ATTORNEY'S REPORT: Mr. Reimer distributed the firm's Legal & Legislative Update and discussed recent case law with Board. A controversial current issue is retirees re- entering into active service. Page 4 of 13 Mount Prospect Police Pension Fund Minutes of Meeting — October 29, 2013 Page 4 of 4 CLOSED SESSION: There were no items to be discussed in Closed Session. ADJOURNMENT: A motion was made by Trustee Halachoulis and seconded by Trustee Rosenbarski to adjourn the meeting at 4:00 pm. Motion carried unanimously by voice vote. The next regular meeting of the Mount Prospect Police Pension Fund will be held on Tuesday, January 28, 2014 at 2:00 pm. Respectfully submitted, Tony Halachoulis, President Tom Hoskinson, Secretary Minutes prepared by Barbara Utterback, Pension Services Administrator Approved by Board Date Page 5 of 13 . . . . . . . . . . . . . . . . rl'7 / ' l �r �er c _ ,vim l %� e , - / -� � /~ � - � - - - - -, 71 her ------- ---- -- - - -- ------------ - -------- ......... . . Page 6 of 13 MOUNT PROSPECT POLICE PENSION FUND ANNUAL AFFIDAVIT OF CONTINUED ELIGIBILITY Name: Street; City:__ f �U State / Zip Code Phone: home: cell: (please include area code) Email Address: OPTIONAL: ❑ I DO NOT wish to share this information with other pensioners or the Department The undersigned, being first duly sworn under oath, deposes and states the following: I am currently a retired or disabled member, or the surviving spouse of a member of the Mount Prospect Police Pension Fund. I certify, under oath, that I am still eligible for the pension benefits I am currently receiving. X —, Date Si STATE OF (S COUNTY OF Subscribed and sworn to before me on 20 by the above named person who is (check one) ❑ personally known to me ❑ presented the following identification to verify identity: Identity Type ID or License No. NOTARY SEAL: Signature of Notary Public This form must be returned on or before JANUARY 20, 2014 (Failure to do so may result in a delay of future pension payments) Please return this fully executed form using the enclosed envelope to: LAUTERBACH & AMEN, LLP 27W457 Warrenville Road Warrenville, IL 60555 Or via email: office@lauterbachamen.com or fax to 1- 630 - 393 -2516 Page 7 of 13 Lauterbach & Amen, LLP 0-R! 11111) P1,311C ACC MN N1 NN October 7, 2013 Members of the Pension Board of Trustees Mount Prospect Police Pension Fund Mount Prospect, Illinois 27W457 WAIU?ENVILLE ROAD • MRIZENMI -LE; ILLINOIS 60555 -3902 I'HONE(630) 393-1483i 2516 We are pleased to confirm our understanding of the administrative services we are to provide for the Mount Prospect Police Pension Fund for the fiscal year ending December 31, 2014. We will provide administrative assistance including board meeting agenda preparation, attendance and minutes, preparation of trustee binders, maintenance of active member files, administration of annual elections, and preparation of annual affidavits to pensioners. The administrative services will be billed monthly as work is completed at a rate of $1,310 per month. This engagement to provide agreed -upon procedures will be performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the Pension Board. Consequently, we make no representation regarding the sufficiency of such procedures. We are not engaged to, and will not, perform an audit, the objective of which would be the expression of an opinion on the specified elements, accounts, or items. Accordingly, we will not express such an opinion. These services cannot be relied upon to detect errors, irregularities, or illegal acts that may exist. However, we will inform you of any such matters that may come to our attention. Please indicate your acceptance of the above understanding by signing below. Cordially, LAUTERBACH & AMEN, LLP RESPONSE: This letter correctly sets forth the understanding of the Mount Prospect Police Pension Fund: Accepted by: Title: Page 9 of 13 Lauterbach & Amen, LLP Cf RfIFIED 1 ACC01:NTANTS October 7, 2013 Members of the Pension Board of Trustees Mount Prospect Police Pension Fund Mount Prospect, Illinois 27W457 1ti411?}ZtNVILLk? RO:117 • W, ILLINOLS 60555 -3902 Pf iON L (630) 393 -1483. fAX (630) 393- We are pleased to confirm our understanding of the administrative services we are to provide for the Mount Prospect Police Pension Fund for the fiscal years ending December 31, 2014, 2015, and 2016. We will provide administrative assistance including board meeting agenda preparation, attendance and minutes, preparation of trustee binders, maintenance of active member files, administration of annual elections, and preparation of annual affidavits to pensioners. The administrative services will be billed monthly as work is completed at a rate of $1,280 per month for fiscal year ending December 31, 2014, $1,315 per month for fiscal year ending December 31, 2015, and $1,350 for fiscal year ending December 31, 2016. This engagement to provide agreed -upon procedures will be performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the Pension Board. Consequently, we make no representation regarding the sufficiency of such procedures. We are not engaged to, and will not, perform an audit, the objective of which would be the expression of an opinion on the specified elements, accounts, or items. Accordingly, we will not express such an opinion. These services cannot be relied upon to detect errors, irregularities, or illegal acts that may exist. However, we will inform you of any such matters that may come to our attention. Please indicate your acceptance of the above understanding by signing below. Cordially, -1 ou, a r �,. i 0"w..' L__L.P LAUTERBACH & AMEN, LLP RESPONSE: This letter correctly sets forth the understanding of the Mount Prospect Police Pension Fund: Accepted by: Title: Page 10 of 13 Once again the IPPFA is proud to present its regional seminars. By attending one of our regional seminars you are given the opportunity to hear speakers and professionals that work in the public pension arena on a daily basis. Receive up to date information in the areas of legislation, investments, ethics, the economy and fiduciary responsibilities. Check our web site www.ippfa.orq for agenda updates. Locations: (Subject to change) • Wednesday February 26, 2014- NII.J Hoffman Estates Campus, 5555 Trillium Blvd., Hoffman Estates, II.. • \Yednc°" td r, March 19. 2 01 1- .turner °s Hotel & ('asi =o, "?'7? !urner Drive, koi."k Island, IL • Wednesday March 26, 2014 - Chicago Hilton /Oat: Lawn 93335. Cicero Ave., Oak Lawn, IL April 1 "01=1- & Clark Coinmwlit� Nelson ('arr1I)nS Le(1iir�: kooin_ 600 "troy Rd. I'dk.vardsville. I[- • Wednesday April 9, 2014- Keller Convention Center at the Hilton Garden, 1202 N. Keller, Effingham, IL 1 n+. sdltti .,'\ pri1 € 7, '2014- 1 ieartlan C�'k>rnrnunity C::' {�Ilc °1 c. 1 '500 West R,,-iah Road, Normal. IL Seminars are scheduled from 8:00 AM until 4:00 PM Registration begins at 7:00 AM Use the Registration Form Below or Register online at www.ippfa.org (1 per person) - REGISTER NOW SPACE IS LIMITED- Find us on Facebook Registration for (check one?: 2725114 Hoffman Estates ... _ .... _ .. _3719114 Rock Island 3126114 Oak Lawn ______4il/14 E dwardsvilie 4 %9114 Effingharn _ 4/15/14 Normal Name: Preferred First Name on Badge: Fund /Organization Name: Preferred Address: Home Work Address: City: State: Zip: Phone: Email: Fax: Payment Information: I am paying by check: # _ I am paying by credit card: _Visa _MC Card Number: Name on Card and Signature: Billing Address: Call 815- 753 -7922 with registration questions (hours 8:00 am to 4:30 pm). All payments made payable to: NIU Mail to: Registration Office, Outreach Services, Northern IL University, DeKalb, IL 60115 E -mail: outreachreeistration(a NIU Fax: 815- 753 -6900 Register on line: www.ippfa.org Expiration: City: State: Zip: PUBLIC PENSION TRUSTEE TRAINING How Do U Satisfy the Annual Trustee Training Requirements? In 2009 the Illinois legislature passed two laws requiring a total of 16 hours of annual training for Downstate Police and Fire pension trustees. 8 hours more than trustees that sit on other public pension funds. Eight hours of this training ia mandated to include the topics of ethics, fiduciary responsibilities and investments, not 8 hours on each topic as some believe. The type of training for the second eight hours io decided onbyeach board astn what iu relevant and available to each board. that all the tL2jnjgR_M!LsLbe completed by August 12th of each year, To satisfy these requirements the |PPFA offers several ways to obtain the training: • Attend the annual |PPEA Midwest Pension Conference and receive all 1Shours (registration fee required*) • Attend the annual |PPFA Spring Conference and receive all 18hours (registration fee required*) • Attend IPPFA Regional Seminars that will satisfy the 8 hours of ethics, fiduciary and investment responsibilities (registration fee required") • |fm trustee can't attend o seminar, they can take advantage of the 8 hour |PPFA eLearning on-line training that also satisfies the three requirements (registration fee required*) • OK, but what about the second 8 hours? VVe||. |PPFA members can log onto the IPPFA website and click or) "Members Center" and then click on "Presentations". There trustees will find Power Point presentations and videos from past IPPFA con- ferences and seminars that can be reviewed. Trustees can then document the titles and time spent reviewing these presentations in the board meeting minutes. Thane is more than enough information available to satisfy the second 8 hours (FREE and |PPFA membership required) • If trustee is employed in the private sector and requires training for their employ- ment (CPA, Insurance, Investment Broker, etc.) the training received for that employ- ment can also apply to the requirements for trustees. Don't forget that another aspect of the 2009 legislation was the requirement that all trus- tees elected or appointed after August 13, 2009 were required to obtain 32 hours of Cer- tified Trustee training within 18 months ofe|ection/oppmntment, This training must bea 32-hour Trustee Certification course, hours obtained attending 8 or 16 hour sen'tioats or conferences cannot be combined to satisfy the 32 hour certification requirement, The |PPFA nf#*/a this training an well several times a year throughout the state. Taking the 32-hour class will satisfy the 32 hour requirement and the 16 hour requirement. Certifi- oateovvi|| only be issued after completion of all 22 hours. So an can be seen the training is easily obtainable and available to all pension trustees. Seminars, conferences and available training is updated regularly on the IPPFA weboite. 8otowvmwjppfa.org today to get the latest information. * IPPFA conferences and seminars are available to non-IPPFA members at additional cost. Save money and join the |PPFAtoday. Gotowvwm.ippfa,urgu, call G3O-784-O4O8 for membership information. Page 12o,13 Certified Trustee Training Organization: I Pension Fund I Year: 12012 TONY HALACHOULIS Hours Required Type of Trainin Hours Date Completed I Completed I Cent on File TOM HOSKINSON Hours Date Hours Reauired Type of Training I Completed I Completed Cert on File Hours DAVID ERB of Training Hours Date Completed I Completed I Cert on File Hours Required 16 U of I Tax midwest a Pur ose -< SBPP IPPFA - N Hours Required DENNIS SAVIANO Type of Training of sting & finance showcase Wealth Transfer A Seminar LARRY ROSENBARSKI Hours I Date TVDe of Training I Completed I Completed Cert on File ours a e Hours Required Type of Training Completed Completed I Cert on File Page 1 of 1 Page 13 of 13 fours Date npleted Completed Cert on File 1 1/23/2013 yes 2 8/29/2012 yes 2 9/14/2012 yes 3 6/13/13YES ves LARRY ROSENBARSKI Hours I Date TVDe of Training I Completed I Completed Cert on File ours a e Hours Required Type of Training Completed Completed I Cert on File Page 1 of 1 Page 13 of 13