MINUTES OF THE COUNTRYSIDE POLICE PENSION BOARD

MEETING HELD AT CITY HALL

Thursday, January 31, 2013

President Lou Moravecek called the meeting to order at 6:10PM.

Present:

Lou Moravecek President

Steve Drazner Vice-President

John Mikel Secretary

Ken Goluszka Assistant Secretary (arrived at 6:14PM)

Gail Paul Trustee

Cathy Rothbard Clerk

Dick Barrett Wells Fargo Wachovia Securities

Absent: Tom Radja Board Attorney

Dan Davis Morgan Stanley Wealth Management

INVESTMENT UPDATES

Dick Barrett of Wells Fargo Wachovia gave the board members an update of their investments.

Lou Moravecek made a motion to transfer $50,000.00 from Wells Fargo Wachovia Money Market and $180,000.00 from Morgan Stanley Wealth Management Money Market to the State Bank of Countryside Money Market Account to cover retiree pensions, and also to invest $200,000.00 from Wells Fargo Wachovia into the DISIP fund. Steve Drazner seconded, roll call taken, Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul all ayes, no nayes, motion carried.

Lou Moravecek made a motion to waive the reading of the minutes from October 17, 2012, John Mikel seconded, all ayes, no nayes, motion carried unanimously. Lou Moravecek made a motion to approve the minutes, John Mikel seconded, all ayes, no nayes, motion carried unanimously.

RECEIPTS AND DISBURSEMENTS

John Mikel read the receipts and disbursements for September through December of 2012. Lou Moravecek made a motion to accept the receipts and disbursements, Ken Goluszka seconded, roll call taken, Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul, all ayes, no nayes, motion carried unanimously.

BILLS

Tom Radja – attorney fees Ck#4155 $ 962.50

Cathy Rothbard-reimbursement for new check printer Ck#4156 92.62

Lauterbach and Amen-Audit and IDOI annual report Ck#4157 6,300.00

Mesirow Insurance-Fiduciary insurance policy renewal Ck#4158 7,150.00

IPPFA-annual membership dues Ck#4168 775.00

NIU Outreach-IPPFA training class/Rothbard Ck#4169 125.00

Lauterbach and Amen-House Bill 588 Ck#4170 525.00

NIU Outreach-IPPFA training class/Paul Ck#4171 125.00

National Notary Association-annual membership dues Ck#4181 52.00

Cathy Rothbard-reimbursement for postage/FEDEX Ck#4182 33.35

Lou Moravecek made a motion to approve the above bills, John Mikel seconded, roll call taken, Lou Moravecek, Steve Drazner, John Mikel, Ken Goluszka, Gail Paul, all ayes, no nayes, motion carried unanimously.

RESOLUTIONS

2012-004-R Morgan Stanley Sallie Mae BK CD at 1.35% matures 10/24/15 $245,000.00

Lou Moravecek made a motion to ratify the above resolution; Gail Paul seconded, all ayes, no nayes, motion carried unanimously.

OLD BUSINESS

Investment Policy will be updated and voted on at the next meeting.

House Bill 588 has been completed and was given to the City of Countryside.

NEW BUSINESS

A discussion was held regarding Tim Sharpe’s actuarial. There is a possibility that Tim Sharpe did not use the most current mortality table. The Department of Insurance tax levy amount is $919,196.00, Tim Sharpe’s tax levy amount is $708,324.00, and Sandor Goldstein and Associates (hired by the City of Countryside) tax levy amount is $688,914.00. Steve Drazner recommended going with the Sandor Goldstein tax levy as he knows they have used the most current table. Lou Moravecek asked if the Sandor Goldstein actuarial included the longevity and Steve Drazner replied no, it does not. Lou’s concern was that if we use Sandor Goldstein actuarial that does not contain the longevity, the fund will fall behind in the tax levy contributions. Steve Drazner stated it would become part of the unfunded amount. Gail Paul stated the difference is approximately $200,000.00 per year between an actuarial done computing the longevity and one done without using the longevity. Lou Moravecek made a motion to approve the actuarial as submitted by Timothy Sharpe, Steve Drazner seconded, all ayes, no nayes, motion carried unanimously. Lou Moravecek made a motion to accept and utilize the tax levy actuarial from Sandor, Goldstein and Associates in the amount of $688,914.00, Steve Drazner seconded, roll call taken, Moravecek, Drazner, Mikel, Goluszka, Paul, all ayes, no nayes, motion carried.

Gail Paul met with Cathy Rothbard and went over duties of the pension clerk. Gail Paul composed a pension clerk job description. Cathy will also attend training in March at the IPPFA seminar. Lou Moravecek looked over the job description and requested the following be added, that any subpoena information would be submitted to Tom Radja for his review prior to sending it out.

Gail Paul also suggested that the meeting dates be held during the last Thursday of each month.

This will give the investment brokers time to complete their quarterly reports before sending the board their investment updates. Also, that recording the meetings makes it easier to complete the minutes. Lou Moravecek made a motion to accept the police pension fund clerk job description with the one change regarding attorney Tom Radja’s review of subpoena responses, Ken Goluszka seconded, all ayes, no nayes, and motion carried.

Discussion was held regarding board members training, training is good for one year from the date of the training.

Department of Insurance is conducting an audit on the pension fund.

There was no litigation update, due to attorney Tom Radja not present at meeting.

ADJOURNMENT

Lou Moravecek made a motion to adjourn, John Mikel seconded, motion carried unanimously and the meeting was adjourned at 7:24PM.

_______________________________ ________________________________

Lou Moravecek, President John Mikel, Secretary