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Politics & Government

La Grange Police Pension Fund Suffers $444,000 3-Month Investment Loss

Officials say fluctuation a result of the market; next officers to retire in three years.

Your 401k account isn't the only thing subject to investment losses. The La Grange police pension fund lost $444,000 between May and July.

This news comes after the Village of La Grange Board of Trustees voted to add an advisory referendum about pension reform to the village's Nov. 2 ballot. 

Members of the Police Pension Board and their financial adviser have a positive outlook. The decline was discussed at the board's quarterly meeting July 28.

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The fund currently stands at about $8.7 million, down from its end of April total, $9.1 million, according to Lou Cipparone, board treasurer.

Asked whether the loss was a concern, Cipparone replied, "The way the market goes, it's always a concern. We've seen these type of things happen before."

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He added, "We're hoping to see the market work well for us."

The board takes police officers' contributions, along with matching funds from the village, and invests the money in regulated ways, said La Grange Police Chief Michael Holub, who also serves as vice president of the Board. Pensions are paid to officers when they retire or take disability leave. No police officers are eligible to retire for three years, Holub said.

"The last few years, we've had really, really good months and really really bad months," Cipparone said. Last year, the pension had a 15 percent return, he said.

The Dow Jones Industrial Average dropped between April 30 and  July 1, increased by July 29 and dropped again by Aug. 12.

The pension board last month approved investing $100,000 in diversified managed accounts of mutual funds and $50,000 in variable nationwide annuities, or stocks of international companies.

The pension fund lost $532,000 in May and $274,000 in June but rebounded to gain $360,000 by the end of July, Cipparone said.

"July has come back; June was rough," said Richard D. Barrett, managing director of Barrett Group, based in Hinsdale, who serves as the Board's financial adviser. "In the last 30 days, we've seen a nice comeback." 

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