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HomeMy WebLinkAboutMinutes 2006-2008MINUTES OF THE REGULAR PENSION BOARD MEETING 6-1-06 Members Present: Dillon, Brnmbach, Whalen. Meeting called to order: Minutes: Motion to accept the minutes of the meeting held January 17, 2006, motion passed. Old Business: Election Report: Elections were announced and conducted prior to April 17"' , 2006. The results are as follows. Patrick Dillon, three year term ending 2009; Ronald Brumbach, two year term ending 2008; James Whalen, 1 year term ending 2007. Election of Officers: Motion to continue with the current officers, Dillon, President and Brumbach, Secretary. New Business: New member applications: All approved. Matthew R Smith 2-7-06 Dcron Daugherty 2-7-06 Justin L. A. Morson 2-7-06 Scan T. Heneghan 2-7-06 Phillip Mosberg 2-7-06 Michael Perrino 2-7-06 David S. Smrha 2-7-06 New Pension: Michael J. Ryan, 3-31-06, 27 years 6 months, 68.75%, original amount S3975.64/mo Deaths: Harold Cowell, 1-25-06 Ernest Bongratz 2-9-06 Evelyn Currie 3-10-06 Leroy Dullin 3-19-06 Myrtle Breitzman 4-14-06 ]Investment Subcommittee: 1" quarter report distributed to member. Motion to move, S 1,708,697, from Baird / large cap growth to Oak ridge. Approved. Motion to move 2.5 millon from IMET to Becker. Approved. Motion to move I million to ING Pilgrim. Approved. Adjournment Meeting adjourned. MINUTES OF THE REGULAR PENSION BOARD MEETING 10-26-06 Members Present: Dillon, Brumbach, Whalen, Berkowsky, Grady. Meeting called to order: Minutes: Motion to accept the minutes of the meeting held June 1, 2006, motion passed. New Business: New member applications: All approved. Kyle Zeremba 5-5-06 Johann Hagland 9-5-06 Sean Malloy 1-9-06 Daniel Lynch 3-3-06 New Pension: Robert L. Hayden, 7-20-06, Duty Disability, 75%, original amount 55,130.63/mo Deaths: LaVonne Schroeder, 6-28-06, $1,107.98 Joseph Burton, 8-30-06, $2,790.22 Investment Subcommittee: Mary Tomanek distributed and reviewed 3rd quarter report to the board. It was recommended that the board adopt a policy on investment with companies that engage in predatory lending and then forward a letter to Lisa Madigan's office. Further Ms. Tomanek asked for permission to sell the investments of corporations who have not filed timely financial statements. The Investment committee scheduled a meeting for 11-7-06. Dillon noted that the funding level for 2004 was stated at 80.67% in the 2005-2006 City's financial report. Grady stated that the actuarial report for 2006 will be out this week and that his office is developing a plan that will address the fire pension funding problem. Adjournment: Meeting adjourned. u 17 91 MINUTES OF THE REGULAR PENSION BOARD MEETING 2-20-07 Members Present: Dillon, Brumbach, Whalen, Berkowsky. Meeting called to order: Minutes: Motion to accept the minutes of the meeting held October 26, 2006, motion passed. New Business: New Pension: Kenneth Dohm, 10-30-06, 31 years 2mos, 7501S, original amount 56,219.09/mo (8292.00 x 75%) Healthcare Enhancement for Local Public Safety (HELPS) Retirees Act: There was some discussion about this act, effective January 1,2007, that allows a yearly disbursement of up to 53,000.00 pre-tax, for use toward health insurance and/or long term care insurance premiums. Investment Subcommittee: Mary Tomanek distributed and reviewed 4th quarter 2006, report to the board. Ms Tomanek recommended that the board split the Calvert Income Fund account 50/50 between Sovereign Dividend Performer and Pernassus Equity Income. This was approved by the the board, as approved by the investment sub -committee 11-7-06. Further recommended by Ms Tomanek was to distribute restricted holdings with the Madison Mid Cap Core account thru the other remaining issues. Approved. Adjournment: Meeting adjourned. ====16 MINUTES OF THE REGULAR PENSION BOARD MEETING 5-15-07 Board Members Present: Dillon, Brumbach, Grady, Berkowsky, Schwarz, Minutes: The minutes of the regular board meeting from 2-20-07 were reviewed and, a motion to accept the minutes, was made by Berkowsky, seconded by Schwarz, motion passed without dissent. New Business: • Pensions: Deaths: Bette Harrison, 3-14-07 Mabel Thompson, 4-11-07 Robert GodenuvL 4-3-07 New Members: Karris Wilson, Hired 2-26-07 Brandon Gatewood, Hired 3-1-07 Ryan Roeder. Hired 2-26-07 Election Report: An election for the retired trustee position was concluded April 27's, 2007. Three candidates, James Whalen, Robert Schwarz and John Mortell, were on the ballot. The election was conducted by mail. Final count was Schwarz 32 votes, Morten 19 votes, Whalen 17 votes. Schwarz declared the winner. Election of Officers: Motion was made, to continue Dillon as President of the board and Brumbach as Secretary of the board. Motion passed without dissent. Discussion: Grady stated that the actuary report, concerning the pension obligation bonds, should be out 60 days from May 1 ". ]Investment Subcommittee: • Mary Tomanek stated that regarding the Sudan issue legislation could be coming that would require mutual funds to comply Sudan free but would exempt international investments. • 2007 1"quarter review of our investment portfolio showed a combined return of 1.69%. Ms Tomanek recommended that we update our investment policy • Concerning the International fund search, to further balance the international component, Ms Tomanck recommended to the board that we distribute 4% of the monies from the Calvert account (52,154,579), for our international equities, 60% (51,020.000.00) to Harbor Intl Instl and 40% (5680,000.00) to Vanguard International Growth. This recommendation passed without dissent. • Further recommendation to distribute the remaining $450,000 from Calvert to the ING account was put on hold pending a cash flow analysis. Motion to adjourn, passed. Meeting adjourned. �� ., _ . .. - - ----.. .. , ._ ,, .. - .,in_s: rye. �•,l.k, _ _ •,R� s,;-"Cy,�"' --��, # 4 MINUTES OF THE REGULAR PENSION BOARD MEETING 9-24--07 Members Present: Dillon, Brumbach, Schwarz, and Grady. Meeting called to order: Minutes: Motion to accept the minutes of the meeting held May 2007, motion passed. New Business: New Member: Daniel Bevins. Approved. Healthcare Enhancement for Local Public Safety (HELPS) Retirees Act: There was some discussion about the implementation of this act, effective January 1, 2007, that allows a yearly disbursement of up to S3,000.00 pre-tax, for use toward health insurance and/or Iong term care insurance premiums. Office appropriation: A motion by Brumbach, seconded by Grady, to appropriate suffient money to have "Air Conditioning" installed in the pension office by a city contractor ITG. Motion passed without dissent. Investment Subcommittee: Mary Tomanek distributed and reviewed 2nd quarter 2007, report to the board. Ms. Tomanek further gave to the board an economic overview. Which called for slower but positive pace of economic growth over the next several months, with uncertainties abound due to the lack of transparency with financial institutions. Housing experiencing a second downturn. Increase in risk for the downside. Outcome dependent on the Fed. and consumer spending. Concerning our Asset Liability Strategy, based on the most recent actual analysis and projected enployee/employer contributions, short-term assets exceed payouts by approximately S8,000,000. Segments with 2 through 20 years are at shortfall. Recommendations: 1. With future available cash, transfer SI,000,000 to Intermediate duration manager, Becker Capital. 2. After funding short intermediate liabilities, increase allocation to long duration bond manager, ING in the 5-10 year duration segment. i. _ - - 'li' '` - . � nrip. .-�•!`+-:<�; :GE"Ys��.r,!>zK"',��.r:f.;i :... i'd}4.r,�,�r r,+�.'."- .-1. r'�" q, A motion to approve the recommendations as stated made by Dillon, seconded by Grady, and passed with out dissent. Concerning our asset allocation strategy, Ms. Tomanek advised that we need to reduce our equity exposure by 1 % (400,000) to 45%. Transfer assets from Parnassus. Consider increasing allocation to large capitalization equities and equity income manager Gateway. Recommendations: 1. Transfer S500,000 from Golden small core to Sovereign large Cap core and S500,000 to Gateway core. 2. Transfer Sl S million from Parnassus to Gateway. 3. Transfer remaining Parnassus to Atalanta Sosnoff A motion to approve the recommendation as stated made by Dillon, seconded by Grady, and passed without dissent. Adjournment: Meeting adjourned. MINUTES OF THE SPECIAL PENSION BOARD MEETING, TO CONSIDER Thomas McGuigaWs APPLICATION FOR DUTY -DISABILITY PENSION 11-29-07 Board Members Present: Brumbach, Berkowsky, Schwarz and board attorney Mr. Vincent Pinelli. Applicant present: Mr. Thomas McGuigan and his attorney Mr. Thomas W. Duda. Brumbach calls the meeting to order and stated that, the board received Mr. McGuigans's application for line of duty -disability pension. The application and the doctor's reports have been distributed to all members of the board, for review, prior to the meeting. Brumbach further stated that he will be presiding over the meeting. Brumbach enumerated the board exhibits as follows: 1. Application for line of duty -disability 2. Four employee injured -on duty reports 3. Letter of finding, Dr. Michael D. Kornblatt, M.D. 4. Letter of finding, Dr. Neil Allen, M.D. 5. Letter of finding, Dr. Edward L. Selamberg, M.D. Brumbach asks Mr. Duda if he has any presentations to the board. He stated that he had no additional exhibits but would like to amend board exhibit #1, with the addition of Mr. McGuigan's new wife, Ms. Julie Smit, to whom McGuigan was married November 20, 2007. Further, Mr. Duda stated that should the board award a line of duty disability, and since the board application does not indicate an effective date, he would want an effective date of November 5, 2008. Mr. Duda then stated that he was going to have Mr. McGuigan tcstify to the board. Mr. McGuigan was sworn in by the court recorder, and Mr. Duda proceeded with the testimony. Mr. McGuigan testified extensively about the injury to his back that occurred on June 16, 2007. He was also questioned by the board members and Cross-examined by the attorney for the board Mr. Vincent Pinelli. A full record of the proceedings was recorded and is held by the board. After McGuigan completed his testimony, Mr. Duda offered Applicant exhibit # 1, all of Dr. Allen's records concerning Mr. McGuigan. Which was accepted by the board. A motion by Brumbach and seconded by Berkowsky, to retire to "executive session", to consider Mr. McGuigan's application for line of duty -disability pension, was passed without dissent. An executive session was then held by the board. A motion was made by Brumbach and seconded by Schwarz to come out of executive session and return to regular session. Motion passed without dissent. Mr. McGuigan was recross-examined to ask some questions concerning what dates he was off duty on sick leave or OR leave. Upon completion of the re -cross, Schwarz offered a motion to "approve the application by Thomas McGuigan, for a line of duty disability pension, that will be effective upon the removal from City of Evanston payroll. The motion was seconded by Berkowsky. A short discussion was offered by Brumbach and the board then voted on the motion. The motion passed unanimously. Finally a letter from the President of the board, Mr. Patrick Dillon, offering his opinion, that Mr. McGiugan's application should be approved by the board, was read into the record, Motion to adjourn, passed. Meeting adjourned. J. MINUTES OF THE REGULAR PENSION BOARD MEETING 2-20-08 Members Present: Dillon, Brumbach, Schwarz, and Berkowsky Present: Mr. Steven Drazner, Mr. Rom Chmara, Ms. Mary Tomanek, Mr. Charles Bednarz, and Mr. Stephen Bariock. Meeting called to order: Discussion: Concerning Mr. Matthew Grady III `s participation on the board and the need to replace him since he is no longer participating. Minutes: Motion to accept the minutes of the meeting held September 24, 2007, motion passed. Motion to accept the minutes of the Special meeting to consider the line of duty -disability application submitted by Mr. Thomas McGuigan, held November 29, 2007, motion passed. New Business: New Members: Stephen Barlock 1011/2007, Joseph Ceriale 11/27/2007, Justin Norris 11 /27/2007. Deaths: Mr. Michael Ryan (Mary McDonagh) 12/27/2007 (S4,094.91) Mr. Stanley Broslovik (Sophie) 1/3/2008, ($1,125.51) Pensions: Mr. Darold Olsen, 3/1 /2008, 42yrs., ($4,690.75) Healthcare Enhancement for Local Public Safety (HELPS) Retirees Act: Dillon advised the board that he mailed a letter, 1/18/2008, to all Retiree's eligible for the HELPS deduction concerning the procedure to facilitate the deduction on their 1040 form. Board Attorney: Dillon discussed the need to make our relationship with our current board attorney, Mr. Vincent Pinelli, of Burke, Burns & Pinelli, more permanent. Further discussion by Berkowsky; spoke to the possibility of another attorney. Motion by Berkowsky to reexamine our relationship with Burke, Burns & Pinelli, failed to gain a second. Motion by Dillon, seconded by Schwarz, to retain Burke, Burns & Pinelli on an annual basis. Motion passed. Discussion by Berkowsky, as to the standing of a pension fund member, who is no longer on public employee disability act leave, to file for a disability pension. Board consensus was to request a legal opinion from BBP. Investment Subcommittee: Mary Tomanek distributed and reviewed, a new draft of our investment policy, amended in the following areas. 1. Standard of Care, 2. Money Managers, 3. Asset Allocation. Motion by Dillon, seconded by Schwarz, to accept all recommended changes. Motion passed. Concerning our investment portfolio, Ms. Tomanek made the following recommendations. 1. S 1 million proportionally from the Flippin Bruce and Oak Ridge accounts to Calamos Gr & Inc @ 60% and Calnmos Mrkt Ntrl @ 40%. 2. $6.5 million from Becker Capital to Northern Trust Index. Adjournment: A motion to adjourn passed without dissent. MINUTES OF THE REGULAR PENSION BOARD MEETING 5-22-08 Members Present: Dillon, Brumbach, Schwarz, Drazner and Berkowsky Present: Ms. Mary Tomanek, Mr. Vincent Pinelli. Meeting called to order: Investment Subcommittee: Ms. Mary Tomanek distributed the I" quarter reports. Further, she reported that the 1" quarter of this year was extremely volatile and that we could see more of the same for the next few quarters. Ms. Tomanek advised that there has been a change in management in our large cap value equity manager, Flippen, Bruce & Porter, Inc. A search for a new manager found two possibilities Black Rock and EatonVance. Ms. Tomanek recommended EatonVance as the strongest candidate. The recommendation for EatonVance was moved by Berkowsky, seconded by Drazner and passed without dissent. Minutes: Motion to accept the minutes of the meeting held February 20, 2008, motion passed. New Business: Election of Oliicers: The board moved and passed without dissent, for the election of Patrick Dillon as President of the board and Ronald W. Brumbach as Secretary of the board. Mayor Morton has appointed a new member to the board, Mr. Steven Drazner to replace Mr. A Grady, effective March 6, 2008. New Members: Damian Bazan, Christopher Fochs, Jamil Fakhoury, Leah Handelsman, and Kevin Roche. Deaths: Norman Peterson (April 13, 2008) Pensions: Richard Borre (March 5, 2008, 28yrs. S5,280.98) Robert Nelson (March 5, 2008, 23yrs. 9Mos. $3,891.69) Patrick Dillon (March 19, 2009 29yrs. limos, OD S6,071.59) Kevin Kelly (March 31, 2008, 30yrs. S7,032.55) Jobe Smith (April 19, 2008, 25yrs. 8mos. S3,798.67) Discussion: Dillon advised the board that J.P. Morgan Chase Bank has been a big problem in the administration of our payroll over the last year. They can't seem to correct mistakes made month after month. Therefore, we will need to consider a new payroll manager and one consideration might be MB Financial Bank that is currently being used by the Police pension board with much satisfaction. Mr. Vincent Pinelli, board attorney, discussed the need for the board to record all executive sessions and maintain that record for at least 6 months. Also, he discussed the possibility of some application procedures. A motion was made by Berkowsky to modify our application for disability to include a "STATEMENT" component. Motion was passed without dissent. Adjournment: A motion to adjourn passed without dissent. MINUTES OF THE REGULAR PENSION BOARD MEETING I0-16-08 Members Present: Dillon, Brumbach, and Schwarz. Present: Mr. Rom Chmara, Ms. Mary Tomanek and Mr. Marty Lyons. Meeting called to order: Minutes: Motion to accept the minutes of the meeting held May 22, 2008, motion passed. New Business: New Members: Andrew Arreguin, Joseph Peters and Jason Perkiser. Pensions: Captain Brian McCafferty, June 19, 2008, Line of Duty Disability (S5,010.69/Mo.) Chief Michael Whalen, September 18, 2008, Duty Pension ($7,409.76/ Mo). Analysis of Custodial services with JPMorganChase: Dillon discussed our desire to change banking services to MB Bank, currently used by the police pension fund. Mr. Marty Lyons suggested the possibility of using Lauterbach & Amen, certified public accountants and further, make the change by March 1, 2009. Report of Tax Levy: Dillon discussed the need for a letter to the City Council certifying assets in custody, estimated receipts from wages and other sources, and the estimated amount necessary to meet the annual actuarial required contribution. Mr. Lyons stated that his office would cooperate and the sooner we submitted the letter the better. Refund request from FF/FNi Craig Brannan: Mr. Brannan has request a refund of the addition 1 % contribution he has made concerning his combined service time. Board attorney Mr. Vincent Pinelli stated his opinion that no partial refunds are permitted under our code but that if Mr. Brannan wants us to cease the addition 1 % deduction from now forward that would be permissible. Investment Subcommittee: Ms. Mary Tomanek distributed and reviewed the 3Q report of our investment portfolio. As of September 30, 2008 total fund YTD showed — 5.01 %. Further she stated that we could see a no to low growth scenario for the next 24 months. She also recommended that we transfer our monies out of Becker Capital to Northam Trust. This could give us the same return for fewer fees. The board approved the recommendation. Announcements: AFFI Pension will be coming up shortly all members are welcome. Adjournment: A motion to adjourn passed without dissent.