Dupage Policy Journal

Itasca Police Pension Fund met Tuesday, March 1.

Here are the minutes as provided by Itasca:

AGENDA

Itasca Police Pension Fund

Call to Order

The Village of Itasca Police Pension Fund meeting was called to order by President Tim Mace at 5:33 pm.

Roll Call 

Present: President Tim Mace, Vice President Mike Walker, Secretary Bill Webster, Board Member Tim Ivers, Consultant Joe Cristiansen UBS

Not present: Treasurer Bill Fates

Public Comment – None

Minutes from Previous Meeting - Mr. Ivers made a motion for approval of the minutes from the December 1, 2015 meeting. Mr. Walker seconded. MOTION PASSED by unanimous voice vote.

Treasurer’s Report

Mr. Fates was not present at the meeting. Mr. Ivers reviewed the treasurer’s report. Total current assets of $13,965,460. No liabilities. Net assets $13,995,586. For the period ending January 1, 2016 – 3 month expenditures over revenues were $827,674 and 6 month were $1,237,193.

A motion wasmadebyMr.Websterto accept thetreasurer’sreport and was seconded by Mr. Walker. Mr. Ivers abstained. MOTION PASSED by unanimous voice vote.

Investment Activity 

UBS investment review by Joe Cristiansen

Distributed the investment committee agenda. Under pension governance, discussed the asset allocation study for 2016. Questionnaire done every three years to assess risk tolerance. He will send the questionnaire to Mr. Mace to have the board members complete. The results will be put through their system and recommendations will be made based on them.

Tab 1, Page 6: As of December 31, 2015 balance is $14,302,400. Since inception, the fund has grown from $4,913,889 to $14,302,353. Actuarial rate currently 7.65%. This is very high. Investment returns trailing benchmark.

Page 9: Standard deviation is consistent and conservative. Alpha numbers are negative which reflects managers not performing well.

Page 14: Capture ratio needs to be improved. This should be accomplished through recent changes. Page 21: Investment performance summary – Lazard funds and Invesco Equally-Weighted S&P 500 doing negatively. Chilton, Stonebridge, Miller Convertible and First Trust Energy all have beat benchmarks.

Tab 2: Review of 4 and 5 star funds compared to pension funds. Shows that all are performing comparatively.

Tab 3: Rebalancing spreadsheet reviewed and the following recommendations were made:

• Take $10,000 from SPDR S&P ETF.

• Add $125,000 to Vanguard Extended Mkt ETF.

• Add $59,989 to American Funds Euro Pacific.

• Take $14,989 from the Glovista Global TAA.

• Take $350,000 from Bradford Marzec account.

• Add $190,000 to the UBS Cash account. 

A motion was made by Mr. Ivers to approve this recommendation and was seconded by Mr. Webster. MOTION PASSED by unanimous voice vote. 

7. New Business 

A. Sergeant Greg Scerbicke has submitted his retirement paperwork effective January 16th, 2016. Sergeant Scerbicke was hired on 08/30/1987. Salary at the time of retirement is $106,932.80. His benefits were calculated at $74,852.96 (70.00% of $106,932.80). Sergeant Scerbicke served for 28 years, 4 months and 18 days with the Itasca Police Department.

B. Deputy Chief Dean Myles has submitted his retirement paperwork effective March 7th, 2016. Deputy Chief Myles was hired on 01/02/1989. Salary at the time of retirement is $115,440.00. His benefits were calculated at $77,922.00 (67.50% of $115,440.00). Deputy Chief Myles served for 27 years, 2 months and 5 days with the Itasca Police Department.

C. Contacted Richard Reimer regarding guardianship for Dean Myles daughter. Mr. Reimer will look over the paperwork and advise the board.

D. Proposal from McBeath, Fates and Ivers for continued accounting of the Itasca Police Pension Fund.

8. Old Business

A. Tim Ivers has been re-appointed to the Itasca Police Pension Fund.

The vacant spot has yet to be filled.

9. Bills and Disbursements

A. McBeath, Fates, & Ivers, P.C. $2,175.00(11-30-2015), $850.00 (12- 31-15), $1,865.00(01-31-16) Total $4,890.00.

B. IPPFA 2016 annual membership dues $795.00.

C. Minutes for December 1st, 2015 meeting. $100.00 to Cindy Sliwinski $100.00 total.

D. David Hancock medical expenses. $270.20 medical bill and $34.00 for parking. $304.20.

E. 2015 pension conference expenses. Rooms $810.32 and meals $243.69 Total $1054.01

10.Adjournment

President

Timothy Mace

Secretary

Bill Webster