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Home My WebLink AboutPOLICE PENSION - 01/26/2021 - Police Pension Meeting MinutesMINUTES OF A REGULAR MEETING OF THE ELK GROVE VILLAGE POLICE PENSION FUND BOARD OF TRUSTEES JANUARY 26, 2021 A regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees was held via in person and via videoconference on Tuesday, January 26, 2021 at 2:00 p.m. in accordance with Section 7(e) of the Open Meetings Act (5 ILCS 120/7(e)), recently amended by Public Act 101-0640 (Government Emergency Administration Act) as a result of the State's disaster declaration regarding the COVID-19 pandemic and the Board President's determination that an all in -person meeting is not practical or prudent, pursuant to notice. CALL TO ORDER: Trustee Torres called the meeting to order at 2:03 p.m. ROLL CALL: PRESENT: Trustees Christopher Torres, Thomas Molloy, Warren Moody, Allan Ambrose and Charles Walsh ABSENT: None ALSO PRESENT: Attorney Brian LaBardi, Remer Dobrovolny & Labardi, PC (RDL); Finance Directors Christine Tromp and Brian Kohler, Elk Grove Village; Doug Oest, Marquette Associates; Sam Meyer, Lauterbach & Amen LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: October 22, 2020 Regular Meeting Minutes: The Board reviewed the October 22, 2020 regular meeting minutes. A motion was made by Trustee Molloy and seconded by Trustee Walsh to approve the October 22, 2020 regular meeting minutes as written. Motion carried unanimously by voice vote. November 6, 2020 Special Meeting Minutes: The Board reviewed the November 6, 2020 special meeting minutes. A motion was made by Trustee Molloy and seconded by Trustee Moody to approve the November 6, 2020 special meeting minutes as written. Motion carried unanimously by voice vote. INVESTMENT REPORT — MARQUETTE ASSOCIATES: Executive Summary: Mr. Oest presented the Executive Summary for the period ending December 31, 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 December 31, 2020, the three-month total net return is 9.3% and the year-to-date total net return is 19.7% for an ending market value $103,354,318. The current asset allocation is as follows: Fixed Income at 33.1%, U.S. Equity at 42.3%, International Fquity at 14.0%, Real Estate at 8.5%, Alternatives Composite at 1.8% and Cash at 0.4%. Mr. Oest recommended removing manager CS McKee off alert and moving them back into compliance status. A motion was made by Trustee Ambrose and seconded by Trustee Moody to move CS McKee back into compliance status as recommended. Motion carried unanimously by voice vote. Mr. Oest also recommended placing Segall Bryant & Hamill on alert due to an organizational change. A motion as made by Trustee Ambrose and seconded by Trustee Molloy to place Segall Bryant & Hamill on alert as recommended. Motion carried unanimously by voice vote. Fixed Income Manager Search: This item was not discussed. Mr. Oest discussed the portfolio with the Board and noted their overweight in equities. Mr. Oest recommended liquidating $2,000,000 from the Vanguard Institutional Index, $450,000 from the Vanguard Elk Grove Village Police Pension Fund Meeting Minutes — January 26, 2021 Page 2 of 4 Mid Cap Index and $250,000 from Vanguard Small Cap Index and transferring $1,500,000 of the proceeds into CS McKee and the remaining $1,200,000 into Segall Bryant & Hamill. A motion was made by Trustee Ambrose and seconded by Trustee Moody to transfer the funds as recommended. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None A motion was made by Trustee Moody and seconded by Trustee Molly to approve the Investment Report as presented. Motion carried unanimously by voice vote. Review/Update Investment Policy: The Board discussed the Investment Policy and determined that no changes are required at this time. 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 November 30, 2020 prepared by the Village of Elk Grove. As of November 30, 2020, the net position held in trust for pension benefits is $101,716,068. 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 $13,518,864. A motion was made by Trustee Ambrose 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: • Marquette Associates invoice in the amount of $11,250.00 for Investment services. • L&A invoice in the amount of $1,600.00 for PSA services. • RDL invoice in the amount of $943.80 for Attorney Fees. A motion was made by Trustee Molloy and seconded by Trustee Moody to approve the additional bills as presented. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None COMMUNICATIONS AND REPORTS: Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the County by the Village by February 1, 2021. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2021. 2021 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for reimbursement decreased to $0.56 per mile effective January 1, 2021. Affidavits of Continued Eligibility: The Board noted that all 2021 Affidavits of Continued Eligibility have been received by L&A and the originals were given to the Board for their recordkeeping TRUSTEE TRAINING UPDATES: The Board discussed upcoming training opportunities and were reminded to submit any certificates of completion to L&A for recordkeeping. Approval of Trustee Training Registration Fees & Reimbursable Expenses: A motion was made by Trustee Molloy and seconded by Trustee Ambrose to approve Trustee Moody's training reimbursement in the amount of $485.00 for IPPFA registration. Motion carried by roll call vote. Elk Grove Village Police Pension Fund Meeting Minutes — January 26, 2021 Page 3 of 4 AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership — Alex Conglis: The Board reviewed the Application for Membership submitted by Alex Conglis. A motion was made by Trustee Molloy and seconded by Trustee Moody to accept Alex Conglis into the Elk Grove Village Police Pension Fund effective December 14, 2020, as a Tier II participant. Motion carried unanimously by voice vote. Withdrawal from Fund: The Board noted that Alex Estrada has resigned form the Police Department and has separated for the Elk Grove Village Police Pension Fund on December 11, 2020. Contribution Refund —Nicholas Mondongo: The Board reviewed the contribution refund request submitted by Nicholas Mondongo. A motion was made by Trustee Molloy and seconded by Trustee Moody to approve Nicholas Mondongo's contribution refund in the amount of $4,216.00 paid directly to himself. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Review/Approve Regular Retirement Benefit — Frank Gottardo: The Board reviewed the regular retirement benefit calculation for Frank Gattardo prepared by L&A. Officer Gattardo had an entry date of October 15, 1990, retirement date of November 21, 2020, effective date of pension of November 22, 2020, 54 years of age at date of retirement, 30 years of creditable service, applicable salary of $106,214.00, applicable pension percentage of 75% amount of originally granted monthly pension of $6,638.38 and amount of originally granted annual pension of $79,660.56. A motion was made by Trustee Walsh and seconded by Trustee Moody to approve Frank Gottardo's regular retirement benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None Hearing Regarding Retirement Benefit and Creditable Service — Edwin Medina: This item was tabled until the next regular meeting. OLD BUSINESS: Discussion/Possible Action — QILDRO Benefit Discrepancies: The Board discussed the QILDRO Benefit discrepancy for Edward Hansen and Donna Ellery-Hansen. Attorney LaBardi informed the Board that per statute a QILDRO Calculation Order must be filed before issuing payment to the alternative payee which was not done. A motion was made by Trustee Walsh and seconded by Trustee Ambrose to authorize Attorney LaBardi to send correspondence to all parties and advise them that they have 180 days to come into compliance with statute by providing a QILDRO Calculation Order and processing fee. If no reply is received within the 180 days the Board may take additional action and terminate the benefit of the alternative payee. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None The Board discussed notifying their fiduciary liability insurance of a potential claim due to the QILDRO benefit discrepancy. A motion was made by Trustee Moody and seconded by Trustee Molloy to authorize Elk Grove Village Police Pension Fund Meeting Minutes — January 26, 2021 Page 4 of 4 Attorney LaBardi to draft a letter to the fiduciary liability insurance carrier notifying them of the issue. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2021 Cost of Living Adjustments (see attached) calculated by L&A. A motion was made by Trustee Walsh and seconded by Trustee Molloy to approve the 2021 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Moody, Ambrose and Walsh NAYS: None ABSENT: None Review Trustee Term Expirations and Election Procedures: The Board noted that Trustee Ambrose's appointed term expires April, 2021 and reappointment will be requested. Further discussion will be held at the next regular meeting. ATTORNEY'S REPORT — REIMER DOBROVOLNY & LABARDI, PC: Legal Updates: The Board reviewed the Legal and Legislative Update quarterly newsletter. Attorney LaBardi discussed recent court cases and decisions, as well as general pension matters with the Board. 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 Ambrose and seconded by Trustee Moody to adjourn the meeting at 3:33 p.m. Motion carried unanimously by voice vote. The next regular meeting will be held on April 14, 2021 at 2:00 p.m. goar�dd �Presidentretary 1 I Minutes approved by the Board of Trustees on-1 ` JA X) X Minutes prepared by Sam Meyer, Pension Services Administrator, Lauterbach & Amen, LLP