HomeMy WebLinkAboutPOLICE PENSION - 01/08/2020 - Police Pension Meeting MinutesMINUTES OF A REGULAR MEETING OF THE
ELK GROVE VILLAGE POLICE PENSION FUND
BOARD OF TRUSTEES
JANUARY 8, 2020
A regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees was held on
Wednesday, January 8, 2020 at 5:30 p.m. at the Elk Grove Village Hall Meeting Room C located
at 901 Wellington Avenue, Elk Grove Village, Illinois 60007, pursuant to notice.
CALL TO ORDER: Trustee Torres called the meeting to order at 5:38 p.m.
ROLL CALL:
PRESENT: Trustees Christopher Torres, Thomas Molloy, Warren Moody and Charles
Walsh
ABSENT: Trustee Allan Ambrose
ALSO PRESENT: Attorney Rick Reimer, Reimer & Dobrovolny PC; Finance Directors
Christine Tromp and Brian Koehler, Elk Grove Village; Paul Marchese,
Marquette Associates; Alex Michael, Lauterbach & Amen, LLP
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MINUTES: October 16, 2019 Regular Meeting Minutes: The
Board reviewed the October 16, 2019 regular meeting minutes. A motion was made by Trustee
Moody and seconded by Trustee Walsh to approve the October 16, 2019 regular meeting minutes
once amended with a correction to the meeting location. Motion carried unanimously by voice
vote.
Semi -Annual Review of Closed Session Meeting Minutes: The Board discussed the closed session
meeting minutes from a past disability hearing. Further discussion will be held at the next regular
meeting.
INVESTMENT REPORT — MARQUETTE ASSOCIATES: Mr. Marchese provided the
Board with the annual disclosures required pursuant to Sections 1-113.22 and 113.23 of the Illinois
Pension Code.
Review/Update Investment Policy: The Board discussed the amended Investment Policy draft
prepared by Marquette Associates. A motion was made by Trustee Moody and seconded by
Trustee Molloy to approve the amended Investment Policy Statement as prepared. Motion carried
unanimously by voice vote.
Mr. Marchese informed the Board that C.S. McKee sold the majority interest of their company to
North Square Investments. Attorney Reimer suggested reaching out to obtain more detailed
information on who will be actively controlling the Funds money. Further discussion will be held
at the next regular meeting.
Fixed Income Manager Search: This item was not discussed.
Mr. Marchese recommended the Board transfer $1,000,000 from Vanguard Institutional Index
Fund and reallocate the proceeds to Segall Bryant & Hamill. A motion was made by Trustee Walsh
Elk Grove Police Pension Fund
Meeting Minutes — January 8, 2020
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and seconded by Trustee Molloy to reallocate the funds as recommended by Mr. Marchese. Motion
carried unanimously by voice vote.
Executive Summary: Mr. Marchese presented the Executive Summary for the period ending
December 31, 2019. Mr. Marchese discussed the market environment, investment manager status
report, summary of investment changes, total fund composite and performance by investment
managers. As of December 31, 2019, the three-month total net return is 5.1 % and the year-to-date
total net return is 18.1 % for an ending market value of $94,713,554. The current asset allocation
is as follows: Fixed Income at 33.8%, U.S. Equity at 42.0%, International Equity at 12.7%, Real
Estate at 9.3%, Annuity Composite at 1.8% and Cash at 0.4%.
Mr. Marchese Left the meeting at 6:19 p.m.
TREASURER'S REPORT — ELK GROVE VILLAGE: The Board reviewed the preliminary
Financial Report for the period ending November 30, 2019 prepared by the Village of Elk Grove.
As of November 30, 2019, the net position held in trust for pension benefits is $93,575,948. Ms.
Tromp also reviewed the revenue and expense reports, pensioner distribution payments and new
contributions with the Board. A motion was made by Trustee Molloy and seconded by Trustee
Moody to approve the Treasurer's Report as presented. Motion carried unanimously by voice
vote.
Additional Bills, if any: The Board reviewed the following additional bills for approval:
• Lauterbach & Amen invoices 41438, 42052 and 42434 for the months of September,
October, November and December in the total amount of $6,615 for IDOI Report and PSA
Services
• Marquette Associates in the amount of $11,250 for first quarter investment services
• Reimer & Dobrovolny PC invoice 25178 in the amount of $98.05 for attorney fees
• IPPFA invoice in the amount of $795 for 2020 membership dues
A motion was made by Trustee Molloy and seconded by Trustee Moody to approve the additional
bills as presented. Motion carried unanimously by voice vote.
The Board also received a refund check from the Coalition for Qualified Plan Status in the amount
of $226.31 that was given to the finance department to deposit.
COMMUNUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A
informed the Board that due to recently implemented requirements mandated by the IDOI,
spousal data will be necessary in order to file the IDOI Annual Statement. L&A recommended
issuing Affidavits of Continued Eligibility to all pensioners with the April payroll cycle, to
coincide with the fiscal year-end and ensure adequate time to compile the necessary data. The
Board authorized L&A to issue Affidavits of Continued Eligibility to all pensioners in April.
Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the
County by the Village by February 1, 2020. Statements of Economic Interest will be sent to all
registered filers who will need to respond by the deadline of May 1, 2020.
Elk Grove Police Pension Fund
Meeting Minutes — January 8, 2020
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2020 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for
reimbursement decreased to $0.575 per mile effective January 1, 2020.
TRUSTEE TRAINING UPDATES: The Board discussed trustee training requirements and
upcoming training opportunities. Trustees were reminded to submit any training certificates of
completion to L&A for recordkeeping.
Approval of Trustee Training Registration Fees & Reimbursable Expenses: There were no trustee
training registrations or reimbursable expenses presented for approval.
APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Contribution
Refund — Connor Marchetti: The Board noted that Connor Marchetti has $5,772.76 in
contributions in the Fund. Mr. Marchetti has not requested a contribution refund at this time. No
further action is needed.
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Regular
Retirement Benefit — John Otzwirk: The Board reviewed the regular retirement benefit calculation
for John Otzwirk prepared by the IDOI. Mr. Otzwirk had an entry date of October 7, 1988,
retirement date of January 7, 2020, effective date of pension of January 8, 2020, 31 years, 2 months
and 10 days of creditable service, applicable salary of $102,889.50, applicable pension percentage
of 75%, amount of originally granted monthly pension of $6,430.59 and amount of originally
granted annual pension of $77,167.13. A motion was made by Trustee Moody and seconded by
Trustee Walsh to approve John Otzwirk's regular retirement benefit calculated by the IDOI.
Motion carried unanimously by voice vote.
Approve Regular Retirement Benefit — Kevin Finnen: The Board reviewed the regular retirement
benefit calculation for Kevin Finnen prepared by the IDOI. Mr. Finnen had an entry date of January
3, 1994, retirement date of January 10, 2020, effective date of pension of January 11, 2020, 26
years and 6 days of creditable service, applicable salary of $102,889.50, applicable pension
percentage of 65%, amount of originally granted monthly pension of $5,573.18 and amount of
originally granted annual pension of $66,878.18. A motion was made by Trustee Molloy and
seconded by Trustee Moody to approve Kevin Finnen's regular retirement benefit calculated by
the IDOI. Motion carried unanimously by voice vote.
Deceased Pensioner — Jay Akley: The Board noted that pensioner Jay Akley passed away on
November 29, 2019. A motion was made by Trustee Moody and seconded by Trustee Molloy to
terminate the retirement pension of Jay Akley effective November 29, 2019 leaving no eligible
surviving spouse or dependents. Motion carried unanimously by voice vote.
OLD BUSINESS: There was no old business to discuss.
NEW BUSINESS: Portability Update — Brian Ahsell: The Board discussed Brian Ahsell transfer
of creditable service. Mr. Ahsell has received the calculation in order for him to buy his time
from the Champaign Police Pension Fund and transfer it to the Elk Grove Village Police Pension
Fund. No response has been received to date. Further discussion will be held at the next regular
meeting.
Elk Grove Police Pension Fund
Meeting Minutes — January 8, 2020
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Reinstatement of Creditable Service — Miguel Mosqueda: Mr. Mosqueda informed the Board of
his intent to reinstate his creditable service and would like to buyback his time in one lump sum
in the amount of $5,384.08. Further discussion will be held at the next regular meeting.
The Board directed Attorney Reimer to draft a resolution to their Board Rules and Regulations
regarding the interest rate that will be charged to a member wanting to reinstate his creditable
service. Further discussion will be held and the next regular meeting.
Review/Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board
discussed the 2020 Cost of Living Adjustments calculated by the Village. A motion was made by
Trustee Moody and seconded by Trustee Molloy to approve the 2020 Cost of Living Adjustments
as required by statute and calculated by the Village of Elk Grove Village. Motion carried
unanimously by voice vote.
Review Trustee Term Expirations and Procedures: The Board noted that the active member terms
currently held by Trustees Torres and Molloy and the retired member term currently held by
Trustee Moody are expiring in April 2020. Trustees Torres, Molloy and Moody expressed their
interests to remain on the Board if nominated. L&A will conduct an election on behalf of the
Pension Fund for both of the two active member Trustee positions and the retired member Trustee
position. The Board also noted that the appointed Trustee position held by Trustee Walsh is
expiring in April 2020 and he desires to remain on the Board. The Board will contact the Village
and seek reappointment of Trustee Moody to the Board. A motion was made by Trustee Moody
and seconded by Trustee Walsh to authorize L&A to conduct the active and retired member
elections as discussed. Motion carried unanimously by voice vote.
ATTORNEY'S REPORT — REIMER & DOBROVOLNY PC: Legal Updates: Attorney
Reimer distributed and reviewed copies of an overview of the Illinois Firefighters' and Police
Officers Pension Consolidation Bill. All questions were answered by Attorney Reimer.
CLOSED SESSION, IF NEEDED: There was no need for closed session.
ADJOURNMENT: A motion was made by Trustee Moody and seconded by Trustee Molloy to
adjourn the meeting at 7:32 p.m. Motion carried unanimously by voice vote.
The next regular meeting will be held on April 8, 2020 at 5:30 p.m.
Board President or Secretary
Minutes approved by the Board of Trustees on
Minutes prepared by Alex Michael, Pension Services Administrator, Lauterbach & Amen, LLP