HomeMy WebLinkAboutMinutes 1987MINUTES
EVANSTON POLICE PENSION FUND
BOARD OF TRUSTEES
REGULAR MEETING OF 1/20/87
This.meeting was held in room 2403 of.the Evanston City
Hail and was called to order.at 3:02 PM by Tim.Schoolmaster.
Roll was called and all board members Were present except
Jerry Graff.
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Minutes of the special meeting of 11/24/87 were read and
approved subject to a change to include the provisions of
the investment purchased which was 9.03% yield due
11/26/91.
Schoolmaster questioned using any actuarial study other than...;::
the one provided by the State of Illinois when reporting
to the City Council the ammount needed to be provided
by the City to fund the pension. Shank recommended using
State's actuarial numbers.
Schoolmaster moved to use the following numbers, provided
by the State's actuary, to the City when reporting the tax
levy requirements:
1. Assets of the fund as of 2/28/86 totaled
$11,010,454.
2. Estimated receipts in the next year from
salary deductions and all other sources of
income is $400,000.
3. The estimated tax levy required is $2,215,561.
The motion was seconded by Heytow and carried unanimously.
Shank reported the purchases of a Connecticut General GIC
as approved in the special meeting of 11/24/8� and
Washington National Stock Fund and Washington National
Fixed Account as voted on and approved at the special
meeting of 12/30/86. He also reported that the board would
have approximately $1,100,000 on 2/15/B7 and $250,000 by
the end of March to reinvest. John Flood of the American
Law Enforcement Credit Union was present and offered
competative rates of 6.12% for 2 years and 6.49% for 3 years.
Heytow moved to put $500,000 in a ALCU 3 year CD at 6.49%.
The motion was seconded by Shonk and carried unanimously.
Shonk moved to put $300,000 in a GIC for 3 years at the most
favorable rates with bids to be received from three sources
to be contacted by Shonk. The motion was seconded by
Heytow and carried unanimously. Shonk moved to put $550,000
(appx) in June 1990 Treasuries yielding 6.49%. The motion
was seconded by Schoolmaster and carried unanimously.
Heytow reported the resignation of Off, Anita Miklasz
effective 12/14/86. Schoolmaster moved to approve the
refund of her contribution to the fund. The motion was
seconded by Heytow and carried unanimously. Heytow reported
the payroll for November and December, 86 was $93,610.76
and January, 07 was $94,512.09. Schoolmaster moved to
Minutes of 1/20/87 page 2
approve the payroll. The motion was seconded.by Heytow and
approved unanimously.
Schoolmaster moved for authorization to purchase a surge
supressor and second disc drive for the computer with a
total cost not to exceed $450. The motion was seconded by
Heytow and carried unanimously.
Schoolmaster reported seeing Off. Grinnell, currently on a
disability pension, doing physical work as a tow truck
driver during the winter snow emergency and recommended
having him reexamined by Dr. Buckingham as soon as possible
for possible certification for reinstatement to his police
Job. The cost of the examination is to be assumed by the
Fund. John Mitchell, the Fund's attorney, who was present
at this meeting, said he would contact Grinnell through his
attorney and schedule the appointment with the doctor.
There was no new business.
Schoolmaster moved to adjourn the meeting at 3:55 PM and.
seconded by Heytow and carried unanimously,
MINUTES
EVANSTON POLICE PENSION FUND
REGULAR MEETING OF
4/14/87
This meeting of the Board of Trustees was called to order at 3:11PM in
room 2402 of City Mali. All board members were present. The minutes of
the Special meeting of 11/24/87 and of the Regular meeting of 1/27/87 were
read. Heytow made a motion to approve the minutes of both minutes as
reported. The motion was seconded by Schoolmaster and carried unanimously.
Heytow moved to approve the payment of 5154.25 to the City of Evanston to
pay for the pension fund's share of his pre employment/pension physical.
The motion was seconded by Schoolmaster and carried unanimously. Heytow made
a motion to approve the pension fund applications of new officers Leon,
Solava, Meger and Whitehead. The motion was seconded by Off. Schoolmaster
and carried unanimously. It was called to the board's attention that
Off Burns, whose application was also to be considered, had resigned
before the board was able to take action on his application, and none of
his contribution to the fund that was withheld by the City was given to the
fund as it was held in escrow by the personnell department pending his
admission to the fund. Heytow moved to approve the pension application of
William Loqan, retiring chief, effective 4/13/87, for the ammount of
S3,536.68 per month. The motion was seconded by Schoolmaster and carried
unanimously. Heytow moved to approve the widow's application of Linda
Gillespie, widow of deceased Off. Michael Gillespie, in the ammount of
$1.364.38 per month. The motion was seconded by Schoolmaster and carried
unanimously. Heytow reported on the death of retired Sgt. Lawrence Borre
on 2/12/87 with no beneficiaries. Heytow reported that the payroll for the
month of Jan.,1978 was $94,705.91, Feb., 1987 was $94,695.18 and Mar., 1987
was 94,450.55. Schoolmaster moved to approve those payroll expenditures.
The motion was seconded by Heytow and carried unanimously. Heytow reported
receiving a memo from Off. Carol Linden asking how her pension benefits
would change as a result of the settlement of the suit Thomas v. City of
Evanston. A conversation held by Heytow with Board attorney Mitchell
indicated that, since the pension fund was not a defendant in that suit,
the negotiated settlement had no bearing on the pension fund or the
plaintiif's pension benefits. A similar conversation held between
Schoolmaster and Dwight Anderson of the Illinois Dept. of Insurance came
to the same conclusion. A memo was sent to Off. Carol Linden by Heytow
indicating that there would be no additional pension benefits afforded her
or other plaintiffs of the suit.
Bob Shonk stated that it is his belief that the interest rates on investments
available to the Board will be rising in the near future. He further stated
that the Board had apex 5350,000 to reinvest at this time and his motion
was to put that money into three month Treasury bills yielding appx 6%
to await a better potential return in the near future. That motion was
seconded by Heytow and carried unanimously. Shank also recommended having
a meeting of the Investment Committee of the Board on Wednesday, May 6, 1987
in his office to discuss the investment of other money coming due at that
time. The other members of the committee, Schoolmaster and Heytowlagreed
to attend that meeting.
Heytow discussed his participation in the informal (no quorem present) meeting
of the Budget Policy Committee attended by him on 4/2/87. That Committee
stated that they would furnish the Pension Board with its recommendation for
a viable pension funding policy that it will recommend to the City Council
before the July 1987 meeting of the Pension Board.
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MINUTES OF 4/14/87 WAGE 2
Schoolmaster discussed the new pension benefit formula for retirees after
1/1/86 and its likely effect of increasing the unfunded liability of the
pension fund.
Schoolmaster recommended July 14, 1987 for the date of the next regular
meeting of the Board and all members present said that they will attempt
to keep that day open for the meeting.
Jerry Graff read several excerpts from a publication, GASS 5, whcih
described a new actuarial standard for reporting the pension funds
satus. He was told by Shonk that A.S. Hansen, the City's actuary, is
currently using the new standard.
MINUTES
EVANSTON POLICE PENSION BOARD
~ ' REGULAR MEETING
7/21/87
This meeting of the Evanston Police Pensioh Board of Trustees was Called to -
order in room 2403, 2100 Ridge, at 3:20PN. All trustees wtre preSent as was
John Mitchell, the Board's attorney. A motion to approve the minutes Af the
.last meeting was made by Heytow and seconded by Schoolmaster. Motion carried
unanimously.
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iA' Schoolmaster reported to the Board that Off. Grinnell was examined by Or: #+
Buckingham at the request of the Board, and Dr. Buckingham sent a report of
that examination to the Board. The report indicated that Grinnell's medical
condition has improved and no longer shows evidence of having a coronary artery
disease problem. It was Dr. Buckingham's opinion that Grinnell can now perform
all functions of a police officer and can return to duty unrestricted. Schoolmaster
also said that he spoke to Grinnell wh said that he is anxious and ready to
return to duty. Schoolmaster moved to certify to the Chief of Police that
;. Grinnell is fit for duty and ready to return to work and to terminate pension
�.: benefits as of 7/22/87. The motion was seconded by Graff and it was carried
unanimously. Schoolmaster will notify the Chief of Police by letter of this
• action.
Bob Shonk reported to the Board that the CCPA Credit Union has been taken over
by the State's Department of Financial Institutions (DFI) and is being managed
by an employee of that agency. He also reminded the Board that the Fund has'a
total of approximately S600,000 in that institution consisting of a $100,000
share account and a $500,000 CO. GrafF moved to withdraw the $100,000 from the
share account immediately. The motion was seconded by Schoolmaster and carried
unanimously. A decision was made to have a meeting of the Investment Committee
on or about 8/5/87 to consider the remaininq $500,000 CO. Shonk further reported
that the Fund has S600,000 now and additional $200,000 on 7/31 an additional
$450,000 on 8/15 and an additional S400,000 on 9/30 to invest. He recommended
the purchase of a $500,000 GNMA and the rest to be invested out to 1990 or 91.
The Board heard from James Regner of Edward D. Jones Company, who discussed
several investment vehicles available for purchase, and Jerry M. Sappanos of
� the Exchange -National Bank Gf Chicago, who also discussed several investment
vehicles available. Schoolmaster and John Mitchell described a vehicle available
through the Nationwide Insurance Company. Shonk moved to invest S600,000 now
•'�' in a GUMA and to get the best rate closest to par value by contacting Regner,
-Sappanos, and Mary Tomanek for competative bids. The motion was seconded by
Graff and carried unanimously. Shonk staet his opinion that the Board should
k not invest in the Nationwide Insurance product because of Schoolmasters involvement
with the .Illinois Police Pension Fund Association and a percieved conflict of
interest. Schoolmaster and Heytow did not see a conflict of interest, but
Schoolmaster decided not to vote on that vehicle. Heytow moved to put S200,000
into the; Nationwide insurance Product, but there was no second and the motion
died. Shonk moved to put S200,000 in a GIC, 5 year, interest paid annually,
to be purchased from James Reginer or Mary Tomanek to be decided by the best
-'' rate offered. The motion was seconded by Schoolmaster. Graff voted no, all other
members voted yes and the motion carried. The investment of the remaining
available funds will be discussed at the upcoming Investment Committee meeting.
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.,` Schoolmaster discussed the filing of a suit to force the City to properly fund
the Police Pension . Shonk stated that a Budget Policy Committee meeting is
+ scheduled for 8/6 and pension funding will be discussed a' that meeting.
Schoolmaster moved to direct the Funds -attorney to file a complaint in Circuit
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u, nL}uiar rl.eetinq of 1/tl/87 page 2
Court to direct the City of Evanston to properly fund the Police Pension
Fund pursuant to State law. The motion was seconded by Heytow. Schoolmaster
voted yes, Heytow voted yes, Labbe voted yes, Shank voted no, Graff voted no.
The motion carried.
Heytow reported that the payroll for May was S97,987, June $97,074, July $96,845
and moved to approve those expenditures. The motion was seconded by Schoolmaster
and carried unanimously. Heytow also reported that Off. 886o ion resigned
on 6/2I/87 and Off. Block resigned oh 611/87, and both men had requested a
refund of their pension contributions. Heytow moved to approve those refunds.
The motion was seconded by Schoolmaster and carried unanimously. Shonk moved
to approve renewal of the Board's membership in the IPPFA. The motion was
seconded by Schoolmaster and carried unanimously.
The election of .Board officers was discussed and Heytow moved to continue
the Officers as currently seated. The motion was seconded by Schoolmaster and
carried unanimously.
Off. Biars Davis appeared before the ward and presented his application for
disability pension to Schoolmaster.
Heytow moved to adjourn the meeting. The motion was seconded'by Graff and carried
unanimously.
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MI&UTES
•-;� ;,, EVANSTON POLICE PENSION BOARD
«'. REGULAR MEETING
10/13/87
This meeting was called to order in room 2403, 2100 Ridge at
3:07PM by Tim Schoolmaster. All trustees were present as wa$
Mr. John Mithchell, the Board's attorney.
ThQ %�nutejL Wore read and a motion to approve them was mode by.
Roytow and seconded by Shonk. The vote for approval was
unanimous.
Shonk stated that the Board had $200,000 to reinvest on Nov.
15th and reminded the Board that the $500,000 returned to the
Fund by the CCPA Credit Union should be received and reinvested
soon. Shank moved to purchase $500,000 worth of Nov. 1993
T Notes with a coupon of 11 3/4%. The motion was seconded by
Heytow and carried unanimously.
The following three investment salesmen were present and gave'
short presentations on their recommendations:
Lee C. Foreman, President, PenVesE Inc.
Al Johnson, Senior Vice President, United Capital Corp.
Peter W. Shellenbach, Financial Consultant, Merrill Lynch Inc.
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Schoolmaster interviewed Lee Foreman of PenVest regarding an _
r, endorsement fee paid to the Illinois Police Pension Fund '
Association by Nationwide Insurance for which PenVest is a
general agent. It was disclosed that there is no connection
between PenVest and the IPPFA but PenVest will display some
investment products at the IPPFA convention.
;} A decision was made to defer the decision on the investment
of the remaining S200,000 until a special meeting of the
Investment Committee to be held in November.
1 Heytow reported on the previous quarter's payroll which was
,�.`. as:follows:August, $95,179.41; September, $95,179.41;
Odtober,•$96,375.76, and moved to approve the payroll as
reported. The motion was seconded by Shonk and carried
unanimously. Heytow reported on the following three refunds
�? of pension contributions to police officers who have resigned:
Off.' -Wilbur, $29,443.46; Off. Beaudion, $26,299.16;
�. Off. Block, $21,621.37, and moved to approve the refunds as
reported. The motion was seconded by Shonk and carried
unanimously. Heytow reported on the payment of $189 to
Dr. Sclamberg of St. Francis Hospital who examined Off.
Biars Davis, a disability pension applicant, at the request
of the Board and moved the approval of the payment as
reported. Schoolmaster seconded the motion and it carried
unanimously.
The Board was asked to reconsider the termination of Off.
Grinnell's disability pension by his attorney, Garson
' Wernick. He presented the Board with a medical report on
Grinnell's condition prepard by Dr. Cantieri, Grinnell's
F` physician. It indicated that Off. Grinnell was not physically
fit for police duty and it will become a permanent part of
this record and kept in Off. Grinnell's file. Schoolmaster
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REGULAR MEETING MINUTES OF 10/13/87 F.2
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moved to recind the Board's previous order to terminate the
disability pension.and to reinstate the pension retroactive
to the date of the last payment. The motion was seconded by
Heytow and carried unanimously.
The Board considered the application for disability pension
• filed by 0£f. Biars Davis who was present at this meeting.
Schoolmaster reported that the Board was in reciept of five
affidavits from doctors that stated that Off. Davis suffered
permanent injury which prevented him from doing the job of a
s police officer. Off. Davis summarized the events that led
to his injury on duty on April 5, 1986. He further stated
that he is unable to fully utilize his right hand. The letters
" from allexamining physicians, including the one from Dr.
Sclamberg who examined Off. Davis at the request of the Board,
indicated that Off. Davis' injuries were severe enough to
render him disabled. Those letters will become a part of this
record and will be kept in Off. Davis' file. Off. Davis was
suspended without pay for diciplinary reasons on May 7, 1987
while still on medical leave for his injury which seemed to
complicate the issue of this disability pension application.
The Board decided to discuss this issue with the Board's
attorney and take the mattari under advisement.
There was a short discussion of the Fund's suit against the
�r City of Evanston in which no progress could be reported.
. Schoolmaster moved to adjourn the meeting at 4:20PM. The
motion was seconded by Heytow and carried unanimously.
Secretary, 1
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MINUTES
Evanston Police Pension Board
Special Meeting
11/18/87
This meeting w4ka called to order at 12:06PM in room 4202 Of City H411
to consiaev th% petition for disability pension Mad by jqff, Biers
Davis, PYpaent were Board members Shonk, Schoolmaster and Heytow.
Heytow moved to approve a duty related disability pension to be
computed on the salary being earned by^Off. DAvis on the date of
his injury in April, 1986 with payments be retroactive to the date
the application for disability pension was filed with the Board,
July 21, 1987 minus any offsets for worker's compensation or others
k. as required by law. The motion was seconded by Shank and carried
unanimously.
Secretary$
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