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HomeMy WebLinkAboutMinutes 1986MINUTES OF THE 28 JANUARY 1986 REGULAR MEETING OF THE EVANSTON POLICE PENSION FUND BOARD OF TRUSTEES Call to Order -regular quarterly meeting called to order by Board President Heytow at 3:29pm in the police building basement classroom. Roll Call- All trustees were present. Also present were officers R.Linden, S. Pettineo, E. Schwartz, and retiree Ken Hile. Attorney Mitchell's office had called at 2:45pm and said something had come up at the last minute, preventing his attendance. Reading/Approval of Minutes- Motion by Carlson, second by Shonk, that both sets of minutes be approved (previous regular and special meeting). All were in favor. Financial Report and Investments -Treasurer Robert Shonk distributed items for review regarding Board financial policy, which were to be discussed at the next regular meeting. Shank reported that there would be $800,000. to invest by the end of March. The following issues were recommended for purchase by the Board: May 1995 10 3/8% yield 9.14t 5150,000. Motion by Shonk; second by Carlson. Discussion. Carlson as to the advisability of going that far long on investments. ALL WERE IN FAVOR. MOTION CARRIED. Discussion of GNMA issues. $400,000. 10, coupon; 9.96T yield through local trust. Motion by Shonk; second by Schoolmaster. ALL WERE IN FAVOR. SECRETARY's REPORT -Secretary Timothy Schoolmaster reported the following retirements: Deputy Chief David L. SCHRAM- effective 1/3/86 after 28 years 7 days service. Pension was calculated at $29.517.76 yearly; $2459.81 monthly. Schoolmaster read a letter to the Board from Schram. disagreeing with the way the pension was calculated (Schram's figures showed he should get 0.75 more per month). Discussion as to how the pension benefits are calculated. Schoolmaster suggested that the Board authorize a letter to Schram again explaining the calculations, and directing him to write to the Ill. Dept. of Insurance if he had further questions as to the amount. Lt. Thomas Joyce(deferred) from retirement in August to his 50th birthday in December. $2008.16 per month. Officer Thomas HenneSLan(non-duty connected disability of $1312.87 per month reported in November special minutes. Schoolmaster made a motion that the three above be approved. Second by Shonk. ALL IN FAVOR. Deaths Helen May, widow of retired officer Marcus May (served 1929-50) died 10/11/85. No survivors known. $300 per month payment account closed. Ruth Eichler, widow of retired Sgt. Fred Eichler (served 1927-54) died 10/22/85. No survivors known. $300 monthly payment discontinued. account closed. Sgt. Ted Demopulos, died 12/16/85 (retired in 1974) at age 63. Widow Helen Demopulos had all papers in order, and pension of $808.99 was assigned to her. Motion by Schoolmaster, second by Carlson. ALL WERE IN FAVOR of the above changes. Officer Gerald Burbach (on three year military leave -of -absence) resigned on 10/22/85. His contributions of $20,667.94 were refunded to him. Motion for approval by School- master; second by Carlson. ALL WERE IN FAVOR.. EVANSTON POLICE PENSION FUND page 2 minutes 1/28/86 Schoolmaster presented the following bills for approval: Payroll: October 1985 $83,106.57 (The 3% January increases added $678.98). Nov. 1985 83,044.74 Dec. 1985 85,014.24 Jan. 1986 89,088.57 North Suburban Clinic bill for 50' of physical exams for Carol Linden and Linda Lewis (new applicants to the Fund) for $211.50 Motion was seconded by Shonk; ALL WERE IN FAVOR. A $100. contribution to the Fund, from Chief Logan (apparently the work of a former purse -snatcher from 1947, now having a guilty conscience) was mentioned. Schoolmaster made a motion that the usual Board resolution be sent to the City Council using the Dept. of Insurance Actuary's figures for the past year, to request proper funding as required in Chapter 1083-, section 3-127. Second by Heytow. All were in favor. On a motion by Carlson, seconded by Labbe', with all voting in favor, the Board retired to executive session at 4:35pm to discuss personnel matters relating to new application for membership. Heytow moved, seconded by Shonk, and all voting in favor, that the Board move back into public session at 4:55pm. Motion by Carlson, seconded by Shonk, that the application for membership submitted by Officer Carol Linden be accepted at this meeting without further discussion. Voting aye: Heytow, Shonk, Labbe', Carlson. Voting nay: Schoolmaster (who indicated that he wished the matter passed for further study). APPLICATION ACCEPTED. Motion by Carlson, seconded by Schoolmaster, that the application for membership submitted by Officer Linda Lewis be denied, based on the physical report. ALL WERE IN FAVOR. APPLICATION DENIED. The Secretary was directed to inform Lewis about the decision, and offer a chance for a rehearing pending re -examination -letter to be placed in the file). Because of the hour, the meeting was adjourned at 5:10pm. Motion by Shonk, second by all, all were in favor. Timothy schoolmastek, rustee and Secretary Robert Heytow: �• Thos. Carlson: Robt. Shonk:r - Wa. Labbe' #1" MINUTES OF THE 08 APRIL 1986 REGULAR MEETING OF THE EVANSTON POLICE PENSION FUND BOARD OF TRUSTEES Call to Order -THE Regular quarterly meeting of the Board was called to order by Board President Robert Heytow at 3:42pm in the first floor conference room of the police building. ROLL CALL- All trsstees were present. Also present were Attorneys Jim Simpson and Linda Consolo, from the firm of Mitchell and Associates, attorney for the Fund. Reading/APPROVAL OF Minutes -Motion by Carlson, seconded by Shonk, that the minutes of the 1/28/86 Regular meeting, and the minutes of the 3/17/8 Special Meeting, be approved. ALL WERE IN FAVOR. FINANCIAL REPORT AND INVESTMENTS -Treasurer Robert Shonk reported that the Fund now had over $10 million in assets, and that contrary to previous minutes, he had invested $530,000. short on 3/31/86, a listed note January'88 plus $250,000.cash for anticipated expenses. There was discussion of the forecast through July, with a recommendation to stay short on investments. Shonk moved, seconded by Carlson, that the Board authorize him to purchase a S100,000 Certificate of Deposit at market with a one year maturity. ALL WERE IN FAVOR. Shonk moved, seconded by Heytow, that the Board authorize him to puchase a GNMA issue with 9.50 coupon for $200,000. ALL WERE IN FAVOR. Shonk moved, seconded by Carlson, that the Board authorize him to purchase either $350,000 2-year Treasury note or a 2-year CD, after comparing the values on-6/707/85. ALL WERE IN FAVOR. There was discussion among the trustees of a written investment policy prepared by Shonk. Shonk moved, seconded by Heytow that the policy be approve( ALL WERE FAVOR. The Board attorney was to double-check the policy before the next meeting, and to report back to the Board.(Copy of the policy is in the "Correspondence file. ) BOARD ATTORNEY Attorney James Simpson provided an informative commentary on the Case of J. Tharp vs. Urbana Police Pension Board, Illinois Human RightsCommission, et. ai. anddiscussed the implications for Boards across the state (a copy of the case is contained in the Board's "Correspondence" file. SECRETARY's REPORT -Secretary Timothy Schoolmaster announced with regrets the followi, deaths: Retired Officer Vera Everett died 3/7/86. There are no eligible survivors. Her pension prorarted for the first seven days of March was sent to her estate, and that accound is now closed. Shirley Labbe' (widow of retired Sgt. Robert Labbe') died 3/20/86. There are no eligible survivors; balance was sent to estate;account is now closed. The preliminary report from the 111. Dept. of Insurance audit for 1980-85 was disclosed; adjustments have been made in all but two cases, which are under study. Copies of all adjustments and payouts will be included with the final audit report. The ANNUAL REPORT to the Dept. of Insurance is in progress, and should be completed shortly. It was announced that the two-year term of elected trustee Schoolmaster would expire this May; that announcements had been posted, and nominating petetions had been solicited from active members. As of this meeting, Only Schoolmaster had turned in a completed petition. The election will be held per statute on April 21st, and will be supervised by President Heytow and the desk officers. -ft' .L. EVANSTON POLICE PENSION FUND page 2 minutes 4/8/86 It was announced that Officer Scott Bontsema had resigned effective 2/14/86 to take a position with the FBI. The total of his contributions has not been figured, pending his request for refund. Helen Demopolus, widow of (now deceased retired) Sgt. Theodore Demopolus, had ealled several times regarding her unsuccessful attempts to recover medicals payments improperly deducted from her pension check after the death of her husband. Trustee Carlson said that he would look into the matter with the personnel department, and attempt to get the issue resolved. Mention was made of a $50.00 contribution to the Fund from Dr. and Mrs. Max Samter of 646 Sheridan Road; a letter of appreciation was sent by the secretary. The Secretary reported on his discussions with the Evanston Hospital to have the physical examinations done there; further discussions are planned, and he will report back to the trustees. A bill for $107.00 had been received for the physical exam for Officer Kim Grossman, but since she has not been sworn in yet, the bill will be held until the next meeting. Another bill was received for a physical re-examination for Officer Lewis (an audiology exam) becuase the clinic report had disclosed a hearing deficiency, which on re -exam did not exist. On motion of Schoolmaster, seconded by Heytow, all voting in favor, payment of this bill was denied. Mention was made of benefits arranged for members (at no cost to the fund) through membership in the Illinois Police Pension Fund Association: membership in the Warehouse Club (Niles and Arlington Heights); a fleet rate obtained at a car dealership, and applications and benefits available through the American Association of Retired Persons (AARP) , which will be mailed to all beneficiaries with their monthly check. The Secretary was requested to find out where the Northwest Municipal conference send its pool of police officer applicants for physical examinations. There being no new business not already discussed, Carlson moved for Adjournment, seconded by Shonk. ALL WERE IN FAVOR. Meeting was adjourned at 4:59pm. -A. Timot�Schoter, ecretary and Trustee Robert Heytow: Q Thomas Carlson: Robert Shank: William Labbe': MINUTES OF THE 22 JULY 1986 REGULAR MEETING OF THE EVANSTON POLICE PENSION FUND BOARD OF TRUSTEES Gall to Order -The Regularly scheduled meeting of the Board was called to order by Board of Trustees President Robert Heytow at 3:30pm. Roll Call - All trustees were present except for William Labbe' Sr. who arrived at 3:35pm. Reading/Approval of Minutes -Motion by Carlson, seconded by Schoolmaster, that minutes of the 08 April 1986 be accepted as printed. ALL WERE IN FAVOR. Motion carried. FINANCIAL REPORT AND INVESTMENTS -Treasurer Robert Shonkpassed out copies of financial investment policy, which had been discussed at a previous meeting. It was moved by Shank, seconded by Carlson, that Article VI be reworded regarding outside investments (see signed file copy for exact change). ALL WERE IN FAVOR, motion carried. Shank announced that there would be approximately $1.450 million available for investments before the next meeting (property tax receipts and $1 million note maturing 8/31/86), and he recommended that the Fund stay short on investments. Shank moved, seconded by Heytow, that the Fund purchase a $400,000.GNMA issue at 9.50% (yield 9,34%). maturing in2009. ALL WERE IN FAVOR. Heytow moved, seconded by Carlson, that the Fund purchase a $600,000. Treasury Note August of '89, 7.00% yield. ALL WERE FAVOR.Heytow moved, seconded by Schoolmaster, that the Fund purchase a $400,000. Treasury Note (April of '91, 7.25% yield) .ALL WERE IN FAVOR. SECRETARY'S REPORT- Secretary Timothy Schoolmaster reported that the followed had occurred since the last meeting: Correspondence: (All letters are held in the Fund's "Correspondence file") A letter and a call had been receivedfrom Robert Witt, regarding the possible decrease in his pension ordered by the Dept. of Insurance; a letter had been receivedfrom widow Helen Dempulous, thanking various persons for straightening out problems with her health insurance deduction following the death of her husband; a letter was received from Elmer Dorband, thanking the secretary and the Department of Insurance for their diligence in discovering an increase that was due him; a memo was received from Harry Sakai, Chief account for the city of Evanston, regarding an overdistribution from the Debt Service Fund; and a letter was received (one of thanks was also sent) from Dr. and Mrs. Max Samter of 645 Sheridan Road, who made a contribution of $50. to the Fund. Payrolls: April $87,949.19 June $88,864.14 May 87,949.19 July 88,864.14 Motion by Schoolmaster, seconded by Heytow that the above payrolls be approved. ALL WERE IN FAVOR. Personnel Changes: Termination: Officer Anthony Bradley (7/7/85 to 4/21/86 $1629.36 refunded. FILE CLOSED Resignations: Officer Brian Sheehan (5/5/86 to 7/10/86) No request for refund received . Officer John Leonard (2/80 to 4/12/86) $11,323.78 refunded. Officer Scot Bontsema (6/23/80 to 2/14/86)$12,234.87 refunded. RETIREMENTS: Cmdr. Gerald Brandt (7/25/66 to 7/21/86) DEFERRED TO 6/18/93 $1553.04 per month pension calculated. EVANSTON POLICE PtNSION FUND page 2 minutes 7/22/86 Sgt. Gregory Murphy (1/1/60 to 7/23/86) $1896.52 Schoolmaster moved acceptance of all retirement and refund payments, seconded by Carlson. ALL WERE IN FAVOR. Motion carried. An application has been received from Officer Kim Grossman for membership in the FUND; all medical reports and other papers are in order. Bills have been received for payment of the physical exams for Grossman and Officer Brian Sheehan (shared with the personnel department). It was moved by Schoolmaster, seconded by Carlson, that these bills be paid and that Officer Grossman be accepted into the fund. ALL WERE IN FAVOR. In the trustee election held April 21st, only Timothy Schoolmaster submitted a nominating petition. and only his name appeared on the ballot. 38 votes were recorded for Schoolmaster, and one ballot was invalid. Schoolmaster will represent the active members for two additional years, ending in May of 1988. It was announced that the 19$5 De artment of Insurance audit had been completed, and all items had been complied with except item 6 {the reduction for four retirees each 3%, a matter of differing interpretations of the law. Each retiree effected had been previously notified of the possible change in writing). Discussion. It was mentioned that the cost of a hearing would exceed any benefits. Motion by Schoolmaster, seconded by Carlson, that the Dept. of Insurance's order be complied with, that the four pensions be reduced 3%. and that all effected be notified in writing before the change, effective August 1986). ALL WERE IN FAVOR. Motion carried. $1954.00 was received as proceeds of the bicycle auction on 5/20/86. There was a bill for $12.96 for the Pioneer Press ad announcing same,paid 6/2/86. Motion by Shonk, seconded by Carlson for payment. ALL WERE IN FAVOR. There are still 14 cards out from the annual annuitant survey, which will be followed up. It was recommended by Board Attorney Mitchell, and a motion presented by Schoolmaster, seconded by Heytow, that the FUND Not accept salary deductions from newly_sworn officers until (and if) they are formally acce ted by the FUND, ana Gnat the monies could be placed into an escrow account penNng acceptance, and that this be communicated to the City Personnel Office. ALL WERE IN FAVOR. The Secretary announced that various meetings had been held between Evanston Hospital Staff, and Ms. Witt of the City personnel office, for the purpose of arranging the pension fund physicals (shared with personnel). The cost was similar or slightly higher than we have been paying, but it appears to be a more complete physical. There was a motion by Heytow, seconded by Schoolmaster, to do all fut.;re physicals at the Evanston Hospital . ALL WERE IN FAVOR. There was discussion of purchasing a computer for the fund. Heytow will check on prices and sources and report back at a later date. Old Business -There was none. New Business -There was none.(not already discussed) tlection otticers: (as is required by statute). Motion by Carlson, seconded by Shonk, that the present slate officers be retained. Discussion. Motion withdrawn. Heytow nominated Schoolmaster for president, seconded by Carlson. ALL WERE IN FAVOR. Schoolmaster nominated Heytow for Secretary; second by Labbe'. ALL WERE IN FAVOR. Carlson nominated Labbe' for vice president; second by Shonk. ALL WERE FAVOR. ADJOURNMENT: Meeting adjourned by Heytow at 5:10pm.(ALL WERE IN FAVOR). Robt.Heytow: Thos.Carlson: Robt.Shonk: Timothy Scho lmaster secretary and Trustee Wm. Labbe': • MINUTES EVANSTON POLICE PENSION BOARD REGULAR MEETING OF 10/21/86 • The meeting was called to order by Tim Schoolmaster at 3:22 PM. Roll was called and all trustees were present except Jerry Graff who arrived at appx 4PM. Schoolmaster moved for the approval of the special meeting called to consider the disability pension of Off. Ronald Grinnell. Heytow seconded the motion which was approved by all board members present. Schoolmaster reminded the board of the approval of payment of dues to the Illinois Police Pension Fund Assn. on 6/22/86. Bob Shonk moved for the approval of the minutes of the meeting of 6/22/86. The motion was seconded by Heytow and approved by all members present. Bob Shonk passed out financial information and suggested that a subcommitte be formed to develope an investment senario. Shonk, Schoolmaster and Heytow volunteered to serve on that subcommitte to review investment materials and make recommendations. Shonk made a motion to buy a treasury bill of six month duration With appx $400,000 coming due to be liquidated when a better investment decision has been made for that money. That motion was seconded by Schoolmaster. The vote was unanimous in favor of the motion. Mr. Lee Fohrman of Nationwide Insurance Co. was introduced to give a presentation on financial instruments available to the board From his company. John Mitchell, the board's attorney, who was present at this meeting, indicated that the Nationwide instrument was being endorsed by the Illinois Police Pension Fund Assn. in consideration for an endorsement fee paid to the IPPFA by Nationwide Ins. Ca. Mr. Fohrman was questioned about the ramifications of this fee by Bob Shonk who also expressed some reservations about the propriety of the fee. Following Mr. Fohrman•s presentation, Mary Tomanek of E.F. Hutton and James Reginer of Edward D. Jones Co. both gave presentations on investment vehicles available to the pension fund from their respective companies. John Mitchell reminded the board that the year for which he had been retained was ending and that his current one year retainer fee is $750 Which includes ten billable hours, after which each billable hour will be billed at $100 per hour. Shank commented that he still thought that the needs of the pension Fund for legal assistance could be filled by the city's attorney. Heytow disagreed and made a motion to approve payment of the retainer fee with the stipulation that charges for extra billable time would have to be approved by}+ the board. The motion was seconded bar Schoolmaster. Shonk voted no, all other members voted in • Page 2 , in favor. The motion carried. Heytow reported the retirement of Off. Harry Hynds who would be receiving a pension of $1829.20/mo. A motion to approve his pension was mase by Schoolmaster and seconded by Heytow. The vote was unanimous for approval. The board was told of the death of retired Lt. Robert Labahn and the conversion of his pension to a widows pension to be paid to his wife in the amount of $1107.31/mo. A motion to approve the widow's pension was made by Schoolmaster and seconded by Heytow. The vote was uananimous for approval. Heytow reported receiving application for membership in the pension fund rom two new police officers, Richard Worshill and Kevin Jones. Schoolmaster moved to accept both applicants, and the motion was seconded by Heytow. The vote was unanimous for approval. Payrolls for the months of July, August, September and October were reported by Heytow. Schoolmaster moved to approve the payroll vouchers which was seconded by Heytow. The vote was unanimous for approval. A bill for $750 from Dr. William B. Buckingham for professional services and expert testimony at the special meeting of 9/19/86 which was called to consider the disability pension of Off. Ronald Grinnell. A bill for $509.25 from Cynthia Varelli, court reporter hired to doccument the special meeting of 9/79/86, for plrofessional services and transcripts, was also presented to the board. Schoolmaster moved to approve payment of both bills and the motion was seconded by Heytow. The vote was unanimous for approval. A bill for $272.50 from the City of Evanston for the boards share of the pension physicals for Worshill and Jones was presented for approval. The motion for approval was made by Schoolmaster and seconded by Shonk. The motion was approved unanimously. A discussion of the selection of a computer for the pension board was held, and Shonk said that he thought that it would be appropriate to purchase it through the City's purchasing agent. Heytow said that he thought that the purchase could be made directly by the board without the use of the City's purchasing department. Schoolmaster moved to get three bids on computers including one from the City's purchasing agent, and the motion was seconded by Bill Labbe. The vote was unanimous for approval. Jerry Graff asked John Mitchell, the board's attorney, what the trustee's personal civil liability was, and Mitchell's opinion was that the trustees are protected by the assets of the fund and that the board indemnifies the trustees. Schoolmaster said that he asked Dwight Anderson of the Illinois Depatment of Insurance the same question and was told that the trustees are indemnified by the board. A motion to adjourn the meeting was made by Heytow and seconded by Labbe at 5:55pm. The vote was unanimous. MINUTES EVANSTON POLICE PENSION BOARD SPECIAL, MEETING OF 11/24/06 This meeting was called to order by Tim Schoolmaster at 9:06 AM in the 4th floor conference room at 2100 Ridge, All board members were present except Bill L.abbe. The purpose of this meeting was to select investment vehicles for money coming due this Quarter and to pursue the purchase of a computer for the pension fund administration. A motion was made by Heytow to limit the ammount of money invested in insurannce companies special products to 75% of quarterly reinvestment money until the 10% maximum is attained. The motion was seconded by Jerry Graff. The vote was unanimous for approval. Bob Shonk discussed several of the investment vehicles presented to the board for consideration, and had reservations about most of them. He also restated his concerns about the propriety of the endorsement fee paid by Nationwide Insurance to the Illinois Police Pension Fund Assn. especially in light of the fact that board member Schoolmaster is also on the board of the IPPFA. He presented the board with a written legal opinion of Jack Siegel, Evanston's Corporation Counsel, who also expressed some reservations. Shonk moved to place the $375,000 currently held in a short term treasury note into a Conneticut General Guaranteed Deposit Account through Mary Tomanek of E F Hutton. The motion was seconded by Schoolmaster and the vote was unanimous for approval. Other investments would have to be studied and voted on at a later date. Heytow discussed his search for a computer for the pension fund, and said that after talking to several computer professionals and casual users, it was his opinion that the best computer for the pension fund would be the Apple Macintosh. He presented a written quote from Nabih's Computers of Evanston which would supply the computer, printer, cables and software and training for under $2,000. The total cost to the fund after applicable Apple rebates is S1993. A motion to purchase the computer pursuant to the Nabih's quote was made by Heytow and seconded by Schoolmaster. The vote was unanimous for approval. Schoolmaster made a motion to allow the board to purchase a security cabinet, in which to secure the computer, with a purchase price of no more than $450, The motion was seconded by Shonk and carried unanimously. The meeting was adjourned at 10:45 AM. i MINUTES . EVANSTON POLICE PENSION BOARD SPECIAL MEETING 12/30/86 The meeting was called to order by Timothy Schoolmaster at 2:07PM in Bob Shank's office. The purpose of the meeting was to discuss and consider an investment vehicle offered to the Board by James Reginer of Edward D. Jones Investment Co. The product was the WN V Plan of the Washington National Insurance Co. Present for the meeting were trustees Shonk. Schoolmaster and Heytow and Mr. Reginer. The following features of the investment vehicle were sumarized by Mr. Reginer. The Stock account paid 22.2% over the past twelve months, the Bond Account paid approximately 16.8% over the past twelve months and the Fixed Account (GIC) will pay approximately 8.25% until 1/14/87, then 8.75% for one year on money invested before 1/13/87 (Old Honey). Mr. Reginer also told the trustees present that there would be a 6% back end load (fee) charged on money taken out of the program within the first 72 months after which time there would be no such fee, but an ammount equal to 10% of the value can be withdrawn from the program each year without incurring the 6% load. A motion was made by Heytow to invest $400,000 in the WN V Plan with half ($200.000) placed in the Stock Account and half placed in the Fixed Account (GIC). The motion was seconded by Schoolmaster. The vote was unanimous in favor of the motion. The meeting was adjourned at 2:45PM.