Police Pension Fund Board Meeting

Urbana Police Pension Fund 400 s. Vine Urbana, llllnols 81801 217(384-2320) FAX 217(384-2383) URBANA POLICE PENSION FUND Board Minutes - Friday, February 2, 2018 City Building Conference Room-2nd Floor Next Pension Meeting: Friday, April 27, 2018, 1 PM City Building Conference Room - 2nd Floor Present: Steve Royal, President (Term expires 5/31/18) Dave Smyser, Secretary (Term expires 5/31/19) Doug Pipkins, Assistant Secretary (Term expires 5/31/18) Shaennon Clark (Term expires 05/31/18) Others Present: Jim Dobrovolny, Board Attorney (Reimer, Dobrovolny & Karlson, LLC) Patrick Donnelly, Greystone Consulting, a division of Morgan Stanley Ron Eldridge Carla Tucker Absent: Elizabeth Hannan, City Finance Director The meeting was called to order by S. Royal at 1 :08PM. Old Business: Minutes (11/03/17): Motion by S. Royal to accept the Minutes. D. Pipkins seconds Motion, motion passes. Document Destruction: Continued to the April 2018 meeting. Ofc. Eric Ruff - RPO Pension Fund Confirmation Letter: The Fund is awaiting response from Rantoul Police Pension Fund. Continued at the April 2018 meeting. Actuarial/Financial Plan: Continued at the April 2018 meeting. New Business: Publ ic Participation: There was no public participation. New Officers: Elizabeth A. Henry, Justin M. Walker, and Osric N. Hayes {DOE 01/18/18) will be discussed at the April Board meeting. Douglas Haig, Pensioner: The Department of Insurance found a miscalculation on D. Haig's disability pension when he reached his 60th birthday (04/11/16). He should have received an increase in January 2017 & 2018. He was underpaid $59.30 for the months of January 2017 through January 2018. In February 2018, his salary will be adjusted (pending Board approval) to the correct amount ($3,281.42). He was underpaid $59.30 for 13 months ($770.90), plus $30.24 interest {6o/o), for a total of $801.14. Motion by D. Smysor to approve the underpayment to D. Haig. Voice vote: S. Clark {yes), D. Smyser {yes), D. Pipkins (yes), S. Royal (yes). Motion passed. Board Election: S. Royal and D. Pipkins Board terms expire this year. Motion by D. Smyser, directing J. Dobrovolny, to start the election process for Active and Retired pensioners. S. Royal seconds Motion, motion passed. Financial Report: Motion by. S. Royal to receive and file R. Eldridge's quarterly Financial Report {Oct-Dec 2017). Motion passed. R. Eldridge stated the Fund will need $500,000, around the 3rd week of February 2018. Motion by S. Royal to pre-approve the transfer of $500,000 by the end of February 2018. Funds withdrawn will be determined once P. Donnelly reallocates the funds. P. Donnelly will then look at the accounts and give a recommendation for withdrawal. Motion seconded by D. Pipkins; voice vote by S. Royal (yes), D. Pipkins (yes), D. Smysor (yes), S. Clark (yes). Motion passed. Yearly Pensioner COLAs: Motion by D. Smyser to increase pensioners' monthly checks by 3% for 2018. Motion seconded by D. Pipkins; voice vote by D. Smysor (yes), S. Clark (yes), D. Pipkins (yes), S. Royal (yes). Motion passed. Investment Presentation: P. Donnelly reviewed the fourth quarter of the Fund's performance and the economy. To be compliant with Illinois Statutes, which requires pension funds to rebalance investments at the end/beginning of each year, he discussed with the Board options for the Fund. Motion by S. Royal to withdraw $1 million from US Large Core Domestic and $1 million from US Large Capital (ClearBridge) and transfer evenly with $1 million to McDonnell and $1 million to Madison. This will be done as soon as P. Donnelly is able to take care of this transfer. Motion seconded by D. Smyser. Voice vote: S. Clark (yes), D. Pipkins (yes), D. Smysor (yes), and S. Royal (yes). Based on P. Donnelly's recommendation, S. Royal made a Motion to sell the Fund's William Blair investment, reinvesting 50% in John Hancock International Growth Fund and 50% in Oak Mark International Investor Fund. Motion was seconded by D. Smyser and passed with voice votes from S. Royal (yes), D. Smysor (yes), D. Pipkins (yes, S. Clark (yes). P. Donnelly suggested the Fund open an additional account for moving money into an account, alleviating bank transfer fees. Motion by. S. Royal for the Fund to open a Cash Management Account (CMA), so the Fund is not paying for transfer fees. Motion was second by D. Smyser and passed with voice votes from S. Royal (yes), D. Smyser (yes), S. Clark (yes), and D. Pipkins (yes). Illinois Pension Code: Discussion regarding the requirement pursuant to Sections 1-113.22 and 1-113.23 of the Illinois Pension Code. The total number of searches for investment services was 60, with two searches falling in the category of minority, female owned, disability owned. IPPFA Conferences: J. Dobrovolny advised the Board of the following dates: May 1-May 4, 2018 Pension Conference (Peoria, IL) October 1-4, 2018 MidAmerican Pension Conference (Lake Geneva, WI). There being no further business before the Board, the meeting adjourned at 2: 1O PM. Respectfully submitted, 1<.aren Sryler Recording Secretary