Pres. Pension Board Ken Hauser's News Letter

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On May 22, 2015, President Obama signed H.R. 606, the Don’t Tax Our Fallen Public Safety Heroes Act, into law. The measure, which is now Public Law 114-14, clarifies that federal and state-based survivor benefits on behalf of a public safety officer who has died as the direct and proximate result of a personal injury sustained in the line of duty are exempt from federal tax. The legislation was approved on a 413-0 vote in the House and by voice in the Senate. It was sponsored by Reps. Erik Paulsen (R-MN) and Bill Pascrell (D-NJ).

I attended the Healthcare hearing on Monday, June 29, 2015 in Judge Cohen’s Court Room 2308 at the Daley Civic Center. Attorney Krislov wasn’t present due to hip surgery recovery. He had his assistant represent him at the hearing. Judge Cohen has given the Underwood plaintiffs 60 days to respond to the Pension Fund’s motion and the Pension Fund must respond to the Underwood response by September 11, 2015. On October 1, 2015 at 11:0AM, there will be oral arguments in Room 2308.

The total amount of assistance provided to Chicago Police Officers’ families since the Memorial Foundation began in August of 2007 now exceeds $6.2 million. This assistance is made possible because of the payroll and pension contributions made by active/retired Chicago police personnel.

I would like to give you some insight into the world markets. After being overshadowed by Greece and the Eurozone for several weeks, a steep crash in China’s domestic stock markets is finally coming into sharper focus. This is an important event for investors to monitor given China’s importance to the global economy (it is the second largest national economy in the world) and the ripple effects that can occur when a financial-market bubble bursts.

Shares in Chinese companies come in several forms. Two of the best-known share classes are referred to as “H shares” and “A shares”. H shares, which are traded in Hong Kong, offer ownership in a limited number of companies headquartered in mainland China. A shares also represent ownership in mainland companies, but they are traded on exchanges in mainland China, and ownership by outsiders is limited. (While H shares have not been immune to the recent selloff, they did not reach the dizzying heights that A shares did.) The two primary exchanges for A share trading are located in the cities of Shanghai and Shenzhen. Since mid-2014, both of these markets have been on quite a roll. The Shenzhen Composite Index was up more than 170% (in China’s domestic currency, the renminbi) in only a year.

Of course, if market history teaches us anything, it’s that what goes straight up usually comes back down, and this episode has borne that out. The sharp declines in domestic Chinese equities that began in June 2015 – more specifically, the impacts it could have on other economies and markets - has the attention of global investors. Given the character of the bubble and China’s financial system, it is expected that the associated risks will be manageable.

I would like to close by informing you that there will be an election of Trustees to the Pension Board on October 22, 2015. The Retirees Pension Fund elected position provides no monetary benefits, no salary, no car, no expense account and no pay for attending Pension Fund meetings. If I attend a conference, my airfare, hotel any expenses relating to the conference are reimbursed