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Home My WebLink AboutPOLICE PENSION - 10/22/2020 - Police Pension Meeting MinutesMINUTES OF A REGULAR MEETING OF THE ELK GROVE VILLAGE POLICE PENSION FUND BOARD OF TRUSTEES OCTOBER 22, 2020 A regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees was held on Thursday, October 22, 2020 at 2:00 p.m. at the Elk Grove Village Hall Meeting Room E located at 901 Wellington Avenue, Elk Grove Village, Illinois 60007, pursuant to notice. CALL TO ORDER: Trustee Torres called the meeting to order at 2:00 p.m. ROLL CALL: PRESENT: Trustees Christopher Torres, Thomas Molloy, Warren Moody, Allan Ambrose and Charles Walsh ABSENT: Trustee Moody ALSO PRESENT: Attorney Bryan Strand, Remer Dobrovolny & Labardi, PC (RDL); Finance Director Christine Tromp, Elk Grove Village; Doug Oest, Marquette Associates; Allison Barrett and Jess Doogan (via teleconference), Sam Meyer and Kevin Cavanaugh, Lauterbach & Amen, LLP (L&A); Edwin Medina, Michael Gaspari and Nicholas Olsen, Elk Grove Village Police Department PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: July 8 2020 Regular Meeting Minutes: The Board reviewed July 8, 2020 regular meeting minutes. A motion was made by Trustee Ambrose and seconded by Trustee Molloy to approve the July 8, 2020 regular meeting minutes as written. Motion carried unanimously by voice vote. Semi Annual Review of Closed Session Meeting Minutes: This item was tabled until the next regular meeting. INVESTMENT REPORT — MARQUETTE ASSOCIATES: Executive Summary: Mr. Oest presented the Executive Summary for the period ending September 30, 2020. Mr. Oest discussed the market environment, investment manager status report, summary of investment changes, total fund composite and performance by investment managers. As of September 30, 2020, the three- month total net return is 4.5% and the year-to-date total net return is 9.6% for an ending market value $96,598,771. The current asset allocation is as follows: Fixed Income at 35.3%, U.S. Equity at 14.4%, International Equity at 12.3%, Real Estate at 9.0%, Alternatives Composite at 1.6% and Cash at 0.4%. Fixed Income Manager Search: This item was not discussed. Review/Update Investment Policy: The Board discussed the Investment Policy and determined that no changes are required at this time. Mr. Oest informed the Board of their need to raise funds for the purposes of remitting pension benefits and expenses. A motion was made by Trustee Ambrose and seconded by Trustee Molloy Elk Grove Village Police Pension Fund Meeting Minutes — October 22, 2020 Page 2 of 5 to liquidate $2,000,000 from the Fund's Vanguard Institutional Index manager and reallocate the proceeds into the Fund's BMO Harris account for the purposes of reminting pension benefits and expenses. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody A motion was made by Trustee Molloy and seconded by Trustee Ambrose to approve the investment report as presented by Marquette Associates. Motion carried unanimously by voice vote. TREASURER'S REPORT — ELK GROVE VILLAGE: Monthly Financial Report Presentation and Approval of Bill: The Board reviewed the Treasurer's Report for the period ending September 30, 2020 prepared by the Village of Elk Grove. As of September 30, 2020, the net position held in trust for pension benefits is $96,841,734. Ms. Tromp also reviewed the revenue and pensioner distribution payments, new contributions and expense report showing the year-to-date total expenses is in the amount of $8,644,530. A motion was made by Trustee Ambrose and seconded by Trustee Walsh to approve the Treasurer's Report as presented and to ratify the year-to-date expense report in the amount of $8,644,530. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody Additional Bills, if arty: The Board reviewed the following additional bills for approval: • INSPE invoice in the amount of $1,560 for Carl Sabo annual IME. • IPPFA Invoice in the amount of $385 for Chris Torres MidAmerican registration. • L&A invoice in the amount of $1,600 for PSA services. • IPPFA invoice in the amount of $795 for 2021 Membership Dues. A motion was made by Trustee Molloy and seconded by Trustee Walsh to approve the additional bills as presented. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A informed the Board that they sent second request affidavits with a November 6, 2020 due date. To date, 4 affidavits remain outstanding. The Board noted that they will reach out to the outstanding pensioners to check the status on their affidavit. TRUSTEE TRAINING UPDATES: The Board noted that Trustees Torres, Molloy, Walsh and Moody attended the IPPFA MidAmerican Pension Conference. Approval of Trustee Training Registration Fees & Reimbursable Expenses: There were no trustee training registrations or reimbursable expenses presented for approval. Elk Grove Village Police Pension Fund Meeting Minutes — October 22, 2020 Page 4 of 5 75%, amount of originally granted monthly pension of $9,633.75 and amount of originally granted annual pension of $115,605. A motion was made by Trustee Molloy and seconded by Trustee Ambrose to approve Nicholas Olsen's regular retirement benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody OLD BUSINESS: IDOL Annual Statement: The Board noted that the IDOI Annual Statement will be sent to the Village for review prior to filing. NEW BUSINESS: Review/Approve Actuarial Valuation Tax Levy Request: The Board reviewed the finalized Actuarial Valuation prepared by L&A. Based on data and assumptions, the recommended contribution amount is $4,783,303 which is a $627,179 increase from the prior year contribution. The statutory minimum contribution requirement is $3,825,949. The Board acknowledged the Village and expressed gratitude for their additional contributions into the Pension Fund from monies collected by the Village's electric use tax. A motion was made by Trustee Walsh and seconded by Trustee Ambrose to accept the Actuarial Valuation as prepared and to request a tax levy in the amount of $4,783,303 from the Village of Elk Grove Village Board of Trustees based on the recommended amount stated in the Actuarial Valuation prepared by L&A. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody Review/Adopt Municipal Compliance Report: This item was tabled until the November 6, 2020 special meeting. Ms. Barrett and Ms. Doogan joined the meeting at 3: 50 p. m. Discussion/Possible Action — Benefit Discrepancies: Ms. Barrett informed the Board that when L&A completed their set-up process for payroll services, they discovered that Edward and Donna Hansen did not have a QILDRO Calculation Order on file before issuing a benefit to the alternative payee. Attorney Strand advised the Board to keep issuing payment as normal until correspondence is sent to the parties. Further discussion will be held at the November 6, 2020 special meeting. Ms. Barrett and Ms. Doogan left the meeting at 4: 00 p. m. Establish 2021 Board Meeting Dates: The Board discussed establishing the 2021 Board meeting dates as January 13, 2021; April 14, 2021; July 14, 2021 and October 13, 2021 at 2:00 p.m. at the Elk Grove Village Hall Meeting Room E located at 901 Wellington Avenue, Elk Grove Village, Illinois 60007. A motion was made by Trustee Molloy and seconded by Trustee Torres to establish the 2021 Board meeting dates as stated. Motion carried unanimously by voice vote. Elk Grove Village Police Pension Fund Meeting Minutes — October 22, 2020 Page 3 of 5 APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership — Kyle Besthoff, Bryon Leon, Meghan Lowry & Michael Manolitsis: The Board reviewed the Applications for Membership submitted by Kyle Besthoff, Bryon Leon, Meghan Lowry & Michael Manolitsis. A motion was made by Trustee Molloy and seconded by Trustee Torres to accept Kyle Besthoff, Bryon Leon, Meghan Lowry & Michael Manolitsis into the Elk Grove Village Police Pension Fund effective July 21, 2020 as Tier II participants. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody Contribution Refund — Tim Hain & Eric Moore: The Board noted that Tim Hain has resigned from the Elk Grove Village Police Department on July 17, 2020 and no contribution refund has been submitted to date. The Board reviewed the contribution refund request submitted by Eric Moore. A motion was made by Trustee Molloy and seconded by Trustee Ambrose to approve Eric Moore's contribution refund in the amount of $2,460.21 paid in a direct rollover. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Review/Approve Regular Retirement Benefit — Gary Rosko, Edwin Medina & Nicholas Olsen: The Board reviewed the regular retirement benefit calculation for Gary Rosko prepared by L&A. Patrol Officer Rosko had an entry date of October 7, 1991, retirement date of October 16, 2020, effective date of pension of October 17, 2020, 53 years of age at date of retirement, 29 years of creditable service, applicable salary of $106,214, applicable pension percentage of 72.5%, amount of originally granted monthly pension of $6,417.10, and amount of originally granted annual pension of $77,005.20. A motion was made by Trustee Molloy and seconded by Trustee Walsh to approve Gary Rosko's regular retirement benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody The Board discussed the regular retirement benefit for Edwin Medina. The Board noted that Edwin Medina has separated from the Fund 14 days short from reaching his 30 years creditable service. Board Attorney Strand recommended Edwin Medina reach out to the Village manager to resend his date of resignation. The Board noted they will be holding a special meeting on Friday, November 6, 2020 to allow Mr. Medina time to write correspondence to the Village manager and receive a response. Updates will be provided as they become available. The Board reviewed the regular retirement benefit calculation for Nicholas Olsen prepared by L&A. Deputy Chief Olsen had an entry date of January 8, 1990, retirement date of November 20, 2020, effective date of pension of November 21, 2020, 54 years of age at date of retirement, 30 years of creditable service, applicable salary of $154,140.04, applicable pension percentage of Elk Grove Village Police Pension Fund Meeting Minutes — October 22, 2020 Page 5 of 5 ATTORNEY'S REPORT — REIMER DOBROVOLNY & LABARDI, PC: Legal Updates: The Board reviewed the Legal and Legislative Update quarterly newsletter. Attorney Strand discussed recent court cases and decisions, as well as general pension matters with the Board. Annual Independent Medical Examination — Carl Sabo: The Board noted that Carl Sabo attended his annual independent medical examination and it was determined that he remains disabled at this time. A motion was made by Trustee Ambrose and seconded by Trustee Molloy to continue the disability benefits of Carl Sabo based on a finding that he remains disabled and subject to further annual examinations until age 50. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Ambrose and Walsh NAYS: None ABSENT: Trustee Moody Review/Adopt Board Rules & Regulations — Interest Charge for Unpaid Time: This item was tabled until the next regular meeting. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Molloy and seconded by Trustee Moody to adjourn the meeting at 4:35 p.m. Motion carried unanimously by voice vote. The next regular meeting will be held on January 13, 2021 at 2:00 p.m. BoardfireAdent or Secretary l Minutes approved by the Board of Trustees on / t Minutes prepared by Sam Meyer, Pension Services Administrator, Lauterbach & Amen, LLP