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Home My WebLink AboutPOLICE PENSION - 07/13/2022 - Police Pension Meeting MinutesMINUTES OF A REGULAR MEETING OF THE ELK GROVE VILLAGE POLICE PENSION FUND BOARD OF TRUSTEES JULY 13, 2022 A regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees was held on Wednesday, July 13, 2022 at 2:00 p.m. in the Elk Grove Village Hall Meeting Rooms A & B located at 901 Wellington Avenue, Elk Grove Village, Illinois 60007, pursuant to notice. CALL TO ORDER: Trustee Torres called the meeting to order at 2:06 p.m. ROLL CALL: PRESENT: Trustees Christopher Torres, Thomas Molloy, Charles Walsh and Warren Moody (arrived at 2:13 p.m.) ABSENT: Trustee Allan Ambrose ALSO PRESENT: Attorney Richard Reimer, Reimer Dobrovolny & Labardi PC (RDL); Finance Director Christine Tromp, 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: April 13, 2022 Regular Meeting Minutes/dune 7, 2022 Special Meeting Minutes: The Board reviewed the April 13, 2022 regular meeting and June 7, 2022 special meeting minutes. A motion was made by Trustee Torres and seconded by Trustee Molloy to approve the April 13, 2022 regular and June 7, 2022 special meeting minutes as written. Motion carried unanimously by voice vote. Semi -Annual Review of Closed Session Meeting Minutes: The Board reviewed the closed session meeting minutes regarding the Medina disability. A motion was made by Trustee Molloy and seconded by Trustee Walsh to make the closed session meeting minutes and transcripts from the Medina hearing public subject to redaction of attorney client privilege and to destroy the recording 18 months post the disability hearing. Motion carried unanimously by voice vote. Trustee Moody arrived at 2:13 p.m. INVESTMENT REPORT — MARQUETTE ASSOCIATES: Executive Summary: Mr. Oest presented the Executive Summary for the period ending June 30, 2022. As of June 30, 2022, the three-month total net return is (9.2%) and the year-to-date total net return is (8.7%) for an ending market value $100,049.528. The current asset allocation is as follows: Fixed Income at 35.3%, U.S. Equity at 39.0%, International Equity at 12.7%, Real Estate at 12.7%, Alternatives Composite at 0.8% and Cash at 0.4%. A motion was made by Trustee Walsh and seconded by Trustee Molloy and seconded by Trustee Moody 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. IPOPIF UPDATES: Discussion/Possible Action — Interim Cash Management Policy: The Board discussed consolidation and their Cash Management Policy. Mr. Oest recommended the Board raise an additional $2,000,000 from equities and fixed income and transfer the funds into the UBS Bank money market account for the purposes of paying pension benefits and expenses. A motion was made by Trustee Walsh and seconded by Trustee Moody to establish the cash management policy as recommended and to direct Marquette to transfer the additional $2,000,000 prior to the freeze date as discussed. Motion carried by roll call vote. Elk Grove Village Police Pension Fund Meeting Minutes — July 13, 2022 Page 2 of 4 AYES: Trustees Torres, Molloy, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose TREASURER'S REPORT — ELK GROVE VILLAGE: Monthly Financial Report: The Board reviewed the Treasurer's Report for the period ending May 31, 2022 prepared by the Village of Elk Grove. As of May 31, 2022, the net position held in trust for pension benefits is $107,143,181. Ms. Tromp also reviewed the revenue and pensioner distribution payments, new contributions and expense report showing the year-to-date total expenses in the amount of $658,404. A motion was made by Trustee Moody and seconded by Trustee Torres to approve the Treasurer's Report as presented and to approve the year-to- date expenses in the amount of $658,404. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose Additional Bills, if any: The Board noted that the Illinois Department of Insurance Compliance Fee invoice was received. A motion was made by Trustee Moody and seconded by Trustee Walsh to approve payment of the IDOI Compliance Fee in the amount of $8,000. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: The Board noted that Affidavits of Continued Eligibility will be mailed to all pensioners with the July payroll cycle. A status update will be provided at the next regular meeting. 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: The Board discussed the upcoming IPPFA MidAmerican Pension Conference. A motion was made by Trustee Moody and seconded by Trustee Walsh to approve the registration fees for trustees interested in attending the IPPFA MidAmerican Pension Conference and to direct L&A to register Trustees Torres, Molloy, Walsh and Moody for the event. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Contribution Refunds — Kyle Rudauskas & Aaron Harpor: The Board reviewed the contribution refund requests submitted by Kyle Rydauskas and Aaron Harpor. A motion was made by Trustee Moody and seconded by Trustee Molloy to approve Kyle Radauskas's contribution refund in the amount of $8,617.26 paid directly to himself and Aaron Harpor's contribution refund in the amount of $4,770.16 paid directly to himself. Motion carried by roll call vote. AYES: Trustees Torres, Molloy, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Review Approve Regular Retirement Benefits — Frank Vrchota & Kristen Julian: The Board reviewed the regular retirement benefit Elk Grove Village Police Pension Fund Meeting Minutes — July 13, 2022 Page 3 of 4 calculation for Frank Vrchota prepared by L&A. Patrol Officer Vrchota had an entry date of December 28, 1992, retirement date of June 15, 2022, effective date of pension of June 16, 2022, 53 years of age at date of retirement, 29 years of creditable service, applicable salary of $111,601.86, applicable pension percentage of 72.5%, amount of originally granted monthly pension of $6,742.61 and amount of originally granted annual pension of $80,911.32. A motion was made by Trustee Molloy and seconded by Trustee Moody to approve Frank Vrchota's regular retirement benefit calculated by L&A. Motion carried by roll call vote. The Board noted that Kristen Julian hasn't submitted any documents to receive a pension benefit. Updates will be provided as they become available. OLD BUSINESS: There was no old business to discuss. NEW BUSINESS: Status Update IMRF Transfers — Thomas Molloy, Ryan Abad & Steve Rohman: L&A informed the Board that the IMRF transfers submitted by Thomas Molloy, Ryan Abad & Steve Rohman are in process and a calculation will be presented for review and approval at the next regular meeting. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND (CONTINUED): The Board reviewed the Applications for Membership submitted by Gloria Gando, Robert Lundgren, Chase Ori and Michael Salazar. A motion was made by Trustee Molloy and seconded by Trustee Moody to accept Gloria Gando, Robert Lundgren, Chase Ori and Michael Salazar into the Elk Grove Village Police Pension Fund effective June 6, 2022, as Tier 11 participants. Motion carried unanimously by voice vote. NEW BUSINESS: Status Update IMRF Transfers — Thomas Molloy, Ryan Abad & Steve Rohman: The Board discussed what rate or return to be used in the IMRF transfer calculations. A motion was made by Trustee Walsh and seconded by Trustee Moody to authorize L&A to use the Elk Grove Village Police most current actuarial rate of return of 7% in the IMRF transfer calculations. Motion carried by roll call vote. AYES: Trustees Torres, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose ABSTAIN: Trustee Molloy Board Officer Elections — President, Vice President, Secretary & Assistant Secretary: The Board discussed Board Officer Elections and nominated the slate of Officers as follows: Trustee Torres as President, Trustee Ambrose as Vice President, Trustee Molloy as Secretary and Trustee Moody as Assistant Secretary. A motion was made by Trustee Walsh and seconded by Trustee Moody to elect the slate of Officers as stated. Motion carried unanimously by voice vote. FOIA Officer & OMA Designee: The Board discussed maintaining the Village Clerk, Lorrie Murphy, as the FOIA Officer and Trustee Torres as the OMA Designee. Review Preliminary Actuarial Valuation: L&A informed the Board that the Actuary Valuation will be presented to the Board at their fourth quarter meeting. IPOPIF UPDATES (CONTINUED): Discussion/Possible Action — Additional IPOPIF Requests Pertaining to Consolidation: There were no additional documents requiring Board action at this time. ATTORNEY'S REPORT — REIMER DOBROVOLNY & LABARDI PC: Legal Updates: The Board reviewed the Legal and Legislative Update quarterly newsletter. Attorney Reimer discussed recent court cases and decisions, as well as general pension matters with the Board. Elk Grove Village Police Pension Fund Meeting Minutes — July 13, 2022 Page 4 of 4 QILDRO — Edward Hansen: Attorney Reimer informed the Board that the Edward Hanssen's QILDRO dispute with the alternative payee is a civil matter. No further action is needed. Review/Adopt Board Rules & Regulations — Interest Charge for Unpaid Time: The Board noted that this matter was approved at the Board's April 13, 2022 meeting. Attorney Reimer noted he will send the updated rules to the trustees for signature. No further action is needed. NEW BUSINESS (CONTINUED): Status Update IMRF Transfers — Thomas Molloy, Ryan Abad & Steve Rohman: The Board discussed the IMRF transfers submitted by Thomas Molloy, Ryan Abad & Steve Rohman and any other member who will submit a transfer and noted the November due date. A motion was made by Trustee Moody and seconded by Trustee Walsh to approve all completed IMRF transfers and revise the dates of hire pending the final calculation and Village review. Motion carried by roll call vote. AYES: Trustees Torres, Walsh and Moody NAYS: None ABSENT: Trustee Ambrose ABSTAIN: Trustee Molloy CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Walsh and seconded by Trustee Molloy to adjourn the meeting at 3:33 p.m. Motion carried unanimously by voice vote. The next regular meeting will be held on November 2, 2022 at 2:00 p.m. Board President or Secretary Minutes approved by the Board of Trustees Minutes prepared by Sam Meyer, Pension Services Administrator, Lauterbach & Amen, LLP