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WINFIELD POLICE PENSION FUND
Village of Winfield
27w465 Jewell Rd
Winfield, Illinois 60190
Minutes of the Pension Fund Meeting
Monday October 28, 2013
Board Members Present
Roy Grosbeck, President
Bill Rizer, Vice President
Jeff Hunger, Secretary
Gerry McIntyre, Asst. Secretary
Gary Karshna Financial Advisor
Dennis Orsey, Attorney (Via Telephone)
Carl Sorgatz, Treasurer
Curt Barrett Village Manager
Absent
Thomas Szafranski
Meeting was called to order at 7:05pm. Gerry made a motion to approve the July 22,
2013 meeting minutes, Jeff second, All in favor.
Correspondence: None
Bills:
Dennis Orsey for legal services in the amount of $1350.00 for the 4th Quarter (NovemberJanuary), Also for additional legal services in the amount of $1661.25. For the IPPFA
fall conference in Lake Geneva, WI for Bill Rizer ($554.81), Jeff Hunger ($617.73) and
Gerry McIntyre ($592.75). IPPFA annual dues ($775.00) and Dr. Harris ($2520.00)
Gerry motion to approve, Bill second. All in favor.
Treasurer’s Report: None
Investment Report:
Gary stated that the stock and bond prices move sharply lower in May and June when the
Federal Reserve “hinted” that it may curtail its stimulus program. The Fed quickly
retracted their statement and reassured the financial markets by stating that they would
continue their stimulus program, in full force (no tapering) until March of 2014, at the
earliest. The stock and bond markets rallied back on that news! The stock market is
performing much better than the bond market in the current investment environment,
where Federal Reserve “Intervention” dictates the direction of the financial markets!
The yield on the 10 year bond is at 2.60% and it will most likely remain near that level
until January of 2014, when the politicians in Washington DC begin budget discussions
and rekindle the debate on raising the debt ceiling! The Winfield Police Pension Fund
had a 2.11% rate of return over the past twelve months.
Gold is gradually coming back and the European equity markets are also starting to come
back. Gary stated that with the US and European economies strengthening, emerging
markets should also move higher and give the Winfield equity portfolio a “boost.”
Bonds yields are still at historic low yield levels and if interest rates rise, bond prices will
produce yields in the 1% to 2% range for the foreseeable future. Carl Sorgatz questioned
the loss of money due to gold being lower in the last few months. Gary explained that
gold is in our portfolio as a “catastrophic insurance policy.” As a “non-correlating asset”,
gold typically moves lower when most other financial investment assets are moving
higher and gold moves significantly higher when most other financial investment assets
are moving lower. This smooth’s out rates of return and stabilizes the tax levy. We will
discuss the fate of the gold mutual fund in the investment portfolio, as well as other
topics, at the next Investment Committee meeting.
Old Business:
IDOI interrogatories are due on October 31, 2013. The board went over the answers to
the questions on the form required by the IDOI, and fixed some areas where data was
wrong on the form. The Village of Winfield hired Art Tefper to do the actuarial report
for the pension fund. Art used 7.25% as a rate of return. Jeff stated he would like to see
the village paperwork regarding this number. Last year the IDOI uses a rate of return of
6.50% for funds under 10 million dollars. Both Village Manager Curt Barrett and
Village Treasurer Sorgatz stated they did not propose the 7.25%. Jeff stated he would
contact Lauderbauch and Amen and have them make the changes the board fixed. Jeff
made a motion to approve the amended IDOI interrogatories sheet. Bill second. All in
favor.
Discussed the next steps in the James Hanus disability application. Dennis informed the
board that he has received all the IME medical reports from the three doctors. Dennis
sent an email to all three attorneys to inquire if they would stipulate to the facts of the
medical reports. If all attorneys stipulate to the reports, they will be introduced as
evidence. Dennis also contacted the Village of Winfield attorney and James Hanus
attorney for possible dates for the administrative hearing. Dennis will work on putting
together exhibit books for the pension board and attorneys involved. Dennis stated that a
court reporter would also have to be hired for the administrative hearing. Dennis also
explained the disability hearing process from here on out.
Thomas Szafranski notified Village Manager Barrett that he will be moving out of the
state in the next month. Manager Barrett informed the board that Village President
Spande had a person in mind to fill Thomas Szafranski’s spot on the board and they
should have Village Board approval on Thursday November 7th, 2013 at their next board
meeting.
Jeff, Bill and Gerry all satisfied their training requirement by attending the fall
conference in Lake Geneva, WI. Roy also satisfied his training by attending classes.
New BusinessCOLA for retirees. Finance Director Lynn does this, and Jeff will talk to Lynn regarding
this.
Schedule for next years meetings. Definite January 27, 2014, Preliminary Dates April
28, 2014, July 28, 2014 and October 27, 2014.
Regarding paperwork for new employees and Tier 2 pension. Jeff made a motion to
accept a new form for Application of membership as to if they are a Tier 1 or a Tier 2
member.
Application for new memberWinfield Police Department hired 2 new police officers on September 23, 2013, who
both are Tier 2 members of the pension fund. A motion was made by Gerry to accept
Michael J Mendyk and Patrick W. Vogt into the Winfield Pension Fund as Tier 2
applicants. Jeff second. All in favor.
Next meeting will be Monday January 27, 2014 at 7:00pm
Bill motioned to adjourn the meeting at 8:30pm, Jeff second. All in favor.