A regular meeting of the Board of Trustees of the Des Plaines
Police Pension Fund was held on Tuesday, April 19, 2011 at 9:00
AM at City Hall located at 1420 Miner Street, in Room 101, Des
Plaines, IL pursuant to notice, a copy of which is attached to
their minutes.
CALL TO ORDER BY PRESIDING OFFICER
President Nicholas Chiaro called the meeting to order at 9:07
AM.
ROLL CALL
Upon roll call the following answered:
Present: President Nicholas Chiaro, Vice President Robert
Muehlenbeck, Secretary Robert Neil, Trustee Daniel Niemann,
Trustee Jeff Rotkvich
Absent: none
Also Present: Annuitants Wendall Whitted and James Roel,
Board Treasurer Dorothy Wisniewski, Board Attorney Camille
Cribaro-Mello of RSNL&T, Tom McShane of Graystone Consulting,
MSSB, Becky Davis of Lauterbach and Amen (L&A)
APPROVAL OF PRIOR MEETING MINUTES
The Board reviewed the February 8, 2011 minutes as presented in
the board meeting packet. A motion by Neil to approve the
February 8, 2011 regular meeting minutes as presented, second by
Rotkvich. Motion unanimously carried.
APPROVAL OF DISBURSEMENTS
The Board reviewed the disbursements on Warrant list #26 as
presented in the board meeting packet. A motion by Niemann
to approve the disbursements as listed on Warrant List #26
totaling $12,414.37, second by Neil. Roll Call Vote:
Muehlenbeck – aye, Neil – aye, Chiaro – aye, Niemann – aye,
Rotkvich – aye. Motion unanimously carried.
FINANCIAL REPORT
-
Review of Funds Portfolio / Asset Allocation:
Investment Advisor McShane distributed and reviewed with the
Board the Performance Report for the 1st Quarter of 2011.
As of March 31, 2011, a copy of which is attached (see
Exhibit A). The Total Fund balance was $53,917,825; up
2.88% for the QTD and YTD. Asset Allocations were
discussed; Equities at 51.28% and Fixed Income/Cash at
48.72%; growth due to appreciation; recommending no changes
at this time. Wells is still on the watch list. Corporate
Bonds were discussed and handouts distributed for the
Board’s review and education. Discussion on how SKBA and
McDonnell managers, as well as other options, compare with
regard to corporate bond strategies. **The Board
noted corporate bond manager comparisons as an agenda item
for the next meeting.
-
Cash flow Analysis:
The Board discussed the cash flow analysis and estimated
annual fees.
-
Review of Revised Investment Policy Statement:
McShane distributed and reviewed the revised investment
policy statement. After the Board’s review and discussion
of the Board’s goals and specific amendments per the new
legislation; the Board Attorney affirmed her review of the
revised investment policy. A motion by Muehlenbeck to
adopt the revised investment policy, second by Niemann.
McShane stated that he would submit the revised investment
policy to be filed by the State; a copy will also be
submitted to be posted on the Police Pension Fund’s website.
McShane was excused and left the meeting at 10:19 AM
APPROVAL OF LAUTERBACH AND AMEN BALANCE SHEETS
– January and February 2011
The Board
distributed and reviewed the January and February monthly
financial reports from L&A. A motion by
Rotkvich
to approve the
January and February 2011 monthly financial reports from L&A,
second by
Muehlenbeck.
Motion
unanimously carried.
BOARD ATTORNEY’S REPORT
-
Legal Update:
Board Attorney Cribaro-Mello discussed several items of
interest and pending bills to the Board, handouts were
provided in the board meeting packet for reference. Board
discussion about: Fiduciary Liability Insurance, adjustments
for new hires, common law, amendments to “catastrophic”
injury with regard to line of duty disability.
-
Review of New Court Decisions:
Cribaro-Mello discussed court decisions as presented in the
board meeting packet. Discussion about: FOIA disclosures
must be redacted of personal information for members as well
as surviving spouses and/or dependents; salary spikes,
double dipping restrictions, line of duty court case.
The Board also discussed Cook County’s Statement of Economic
Interest filing – all members have already completed this or
will have completed before the May 1st deadline.
The Board discussed the renewal of Fiduciary Liability
Insurance, Director & Officers and Civil Rights Insurance
policies. A motion by Chiaro to approve payment of the
renewal premium for Fiduciary Liability Insurance policy with
Mesirow Financial at a cost of $6,706 effective 05/01/2011 to
05/01/2012, second by Neil. Roll Call Vote: Muehlenbeck – aye,
Neil – aye, Chiaro – aye, Niemann – aye, Rotkvich – aye.
Motion unanimously carried.
OLD BUSINESS
-
Update on Annual Trustee Training Requirements:
The Board reviewed and discussed the 2011 trustee training
opportunities and requirements as presented in the board
meeting packet. Rotkvich has completed the March, 2011
certified training program.
-
Update on Annual Affidavits:
The Board reported that there has been 100% compliance, all
affidavits have been completed and received at the pension
office.
NEW BUSINESS
-
Application
for Membership from Officer Max Voots:
The Board acknowledged and accepted the application for
membership from Max Voots, date of hire: 04/11/2011
-
Approval of
Surviving Spousal Pension for Mona Wolf:
The Board discussed and reviewed the spousal benefits for
Mona Wolf: effective date: 02/05/2011; monthly benefit of
$1,343.92.
-
Approval of
Surviving Spousal Pension for Joan Rembacz:
The Board discussed and reviewed the spousal benefits for
Joan Rembacz: effective date: 02/07/2011; monthly benefit
of $6,317.18.
-
Death of
Retired Detective Norman Klopp:
The Board acknowledged and discussed death of Norman Klopp
on 03/27/2011; Norman was hired 05/04/1968 and is survived
by his wife Penelope.
-
Approval of
Surviving Spousal Pension for Penelope Klopp:
The Board discussed and reviewed the spousal benefits for
Penelope Klopp: effective date: 03/28/2011; monthly benefit
of $4,272.25.
-
Active
Election Results:
The Board reviewed the election results as presented in the
board meeting packet. The Board of Trustees conducted the
election for an active member trustee the nominations were
for Gary Klier and Dan Niemann; 91 ballots were mailed to
active members, 44 ballots were returned to the Board of
Trustees, 4 ballots were received after the election
deadline and were not counted, 2 ballots were returned
undeliverable from the post office and were not counted.
Gary Klier received 17 votes and Dan Niemann received 21
votes. Dan Niemann was re-elected by majority vote to the
Board of Trustees for a 2 year term, his term will expire in
May of 2013.
The Board discussed the receipt of a disability application from
Sgt. Matthew Hicks.
EXECUTIVE SESSION
– none needed
ADJOURNMENT
A motion by Muehlenbeck to adjourn the meeting at 11:06 AM,
second by Chiaro. Motion unanimously carried.
Exhibit A
