HomeMy WebLinkAbout10-27-20_Police_Meeting_MinutesGalesburg Police Pension Fund Board of Trustees Regular Meeting
Erickson Conference Room, City Hall
55 West Tompkins Street, Galesburg, Illinois
October 27, 2020
10:30 a.m.
Call to order by President Chris Hootman at 9:00 a.m.
Present:Dave Christensen,Chris Hootman,Curt Kramer,and Mike Ingles.Absent:Diana
Whitson.Also Present:City Clerk Kelli Bennewitz,Alex Courtney,Rob Arth,Art Busby,and
Phyllis Gau.
Mike Ingles moved,seconded by Dave Christensen,to approve the minutes from the July 28,
2020, meeting. The motion passed.
Alex Courtney,Courtney &Aldrich,LLC,presented the financial statements for the fund ending
September 30,2020.Total assets are $29,311,503 and total liabilities are $259,641.The net
position-restricted pension benefits are $29,051,862.He also provided a transaction report for
the period July - September 2020.
Mike Ingles moved,seconded by Dave Christensen,to approve the quarterly report from
Courson & Associates. The motion carried.
Art Busby,Stratford Investments,reported on the performance review for the period ending
September 30, 2020.
Highlights noted include:
●The total fund investment return for 2nd and 3rd quarters through September 30,2020
was 16 percent with the fund total at $27,410,519.
●For the last twelve months (October 2019 to October 2020),the fund’s investment
return was zero percent.
●Approximately 55 percent of the assets will mature within five years.
●The US economy is out of recession for now with manufacturing and services activity
expanding and consumers spending.
●Rising wages during the pandemic is pushing inflation higher for now.
●Recommended sales include US Treasury strips and Federal National Mortgage
Association bonds.
●Recommended purchases include government/corps bonds and S&P 500 Index SPY and
reinvesting in short-term high quality bonds.
A copy of the performance review has been attached to this official record.
Rob Arth and Phyllis Gau reviewed the Galesburg Police Variable Annuities as of September 30,
2020,showing an ending value of $17,626,344 and a total death benefit of $22,270,615.A copy
of the portfolio review has been attached to this official record.
Galesburg Police Pension Fund Board of Trustees October 27, 2020
Dave Christensen asked if having insurance annuities is a common investment strategy among
other funds.Rob Arth and Phyllis Gau stated that it is a little unusual but something the
Galesburg fund started in 1997.At the time,the board liked the safety and guaranteed feature
of the annuities.Phyllis stated that one could argue that it costs more but it has served the
pension well.Even though it is fairly unique,the protection is good and their home office feels
comfortable with the strategy.
Old Business
A motion was made by Dave Christensen,seconded by Mike Ingles,to approve the Rules &
Regulations. The motion carried.
New Business:
A motion was made by Mike Ingles,seconded by Dave Christensen,to approve the retirement
of Deputy Chief Rodney Riggs on August 14,2020,with a monthly retirement salary of
$6,886.40. The motion passed.
A motion was made by Mike Ingles,seconded by Dave Christensen,to approve the retirement
of Lieutenant James Bradford on August 1,2020,with a monthly retirement salary of $5,103.96.
The motion passed.
A motion was made by Dave Chrsitensen,seconded by Mike Ingles,to approve the admission of
police officers Nathan Lewis,Spencer King,Ross Campbell,and Alec Lindemann to the
Galesburg Police Pension Fund. The motion passed.
A motion was made by Mike Ingles,seconded by Dave Christensen,to approve the transfer of
creditable service (4 years,8 months,and 4 days)from the Peoria Pension Fund to the
Galesburg Police Pension Fund for Police Officer Maverick Rasmussen.The Peoria Pension Fund
has remitted $69,370.30 to the Galesburg Police Pension Fund. The motion passed.
A motion was made Curt Kramer,seconded by Dave Christensen,to approve the Municipal
Compliance Report for the fiscal year ended December 31,2019,from Lauterbach &Amen.
The motion passed.
City Clerk Bennewitz reported that a request was sent to Lauterbach &Amen to calculate the
cost of Nathan Lewis’military time transfer.In order to complete the request,L&A has asked
to use the 12/31/2019 actuary report.The consensus of the board was to authorize the use of
the 2019 report.
Public Comment
None.
Galesburg Police Pension Fund Board of Trustees October 27, 2020
There being no further business, the meeting was adjourned at 9:59 a.m.
______________________________________________________________
Chris Hootman, President Kelli R. Bennewitz, City Clerk
Galesburg Police Pension Fund Board of Trustees October 27, 2020