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Home My WebLink AboutPOLICE PENSION - 01/29/2019 - Police Pension MinutesTHE REGULAR MEETING MINUTES OF THE ELK GROVE VILLAGE POLICE PENSION FUND BOARD OF TRUSTEES JANUARY 29, 2019 A regular meeting of the Elk Grove Village Police Pension Fund Board of Trustees was held on Tuesday, January 29, 2019 at 3:30 pm at the Elk Grove Village City Hall Meeting Room E located at 901 Wellington Avenue, Elk Grove Village, IL 60007 pursuant to notice. CALL TO ORDER: President Christopher Torres called the meeting to order at 3:35 pm. ROLL CALL: PRESENT: President Christopher Torres, Vice President Allan Ambrose (entered the meeting at 3:53 pm), Assistant Secretary Warren Moody, and Trustee Charles Walsh ABSENT: Secretary Thomas Molloy ALSO PRESENT: Christine Tromp, Kyle Pockat and Brian Koehler, Elk Grove Village; Doug Oest, Marquette Associates, Inc.; Liz Failing and Allison Barrett, Lauterbach & Amen, LLP (L&A); Deputy Chiefs Nicholas Olsen and Mike Gaspari, Elk Grove Village Police Department PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: December 17, 2018 Special Meeting Minutes: The Board reviewed the December 17, 2018 special meeting minutes. A motion was made by Trustee Moody and seconded by Trustee Walsh to approve the December 17, 2018 special meeting minutes as written. Motion carried unanimously by voice vote. Semi- Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes for review. Deputy Chief Gaspari joined the meeting at 3: 39 pm INVESTMENT REPORT — MARQUETTE ASSOCIATES INC.: Investment Report: Doug Oest presented the Investment Report for the period ending December 31, 2018. 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, 2018, the three-month total net return is (7.5%) and the year-to-date total net return is (3.8%) for an ending market value of $80,198,981. The current asset allocation is as follows: Fixed Income at 36.7%, U.S. Equity at 38.5%, International Equity at 12.3%, Real Estate at 10.3%, Annuity at 1.7%, and Cash at 0.5%. Mr. Oest recommended replacing the McDonnell Fixed Income Manager and presented the Fixed Income Intermediate Search to the Board. A motion was made by Trustee Ambrose and seconded by Trustee Moody to table this matter until the next scheduled meeting. Motion carried unanimously by voice vote. Trustee Ambrose joined the meeting at 3: 53 pm 2 of 64 The Board discussed changing the 2019 Board meeting schedule. The Board moved the next regular meeting to Wednesday, March 13, 2019 at 5:30 pm. Review/Update Investment Policy: There were no updates to the Investment Policy at this time. Mr. Oest exited the meeting at 4: 27 pm ACCOUNTANT'S REPORT — ELK GROVE VILLAGE: Statement of Plan Net Assets: The Board reviewed the Statement of Plan Net Assets, Revenue and Expense Report and the Gross Monthly Pension Payments for the period ending December 31, 2018 as prepared by The Village of Elk Grove. As of December 31, 2018, the net position held in trust for pension benefits is $81,275,878. A motion was made by Trustee Ambrose and seconded by Trustee Moody to accept the Statement of Plan Net Assets as presented. Motion carried unanimously by voice vote. Presentation and Approval of Bills: The Board reviewed the Marquette Associates invoice #1901052 in the amount of $11,250 for Investment Consulting Services. A motion was made by Trustee Moody and seconded by Trustee Ambrose to approve the Marquette Associates invoice as presented. Motion carried unanimously by voice vote. The Board reviewed the L&A invoice #33044 in the amount of $2,750 for PSA set-up. A motion was made by Trustee Moody and seconded by Trustee Ambrose to approve the L&A invoice as presented. Motion carried unanimously by voice vote. The Board reviewed the L&A invoice #33140 in the amount of $1,645 for Professional Services for the month of December 2018. A motion was made by Trustee Ambrose and seconded by Trustee Moody to approve the L&A invoice as presented. Motion carried unanimously by voice vote. The Board reviewed the Reimer and Dobrovolny PC invoice dated January 18, 2019 in the amount of $500 for legal services. A motion was made by Trustee Ambrose and seconded by Trustee Moody to approve the Reimer & Dobrovolny PC invoice as presented. Motion carried unanimously by voice vote. COMMUNICATIONS OR 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, 2019. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2019. Review/Approve — Death Audit Service Authorization: The Board discussed the Death Audit Service offered through IPPFA and L&A and designated Trustee Molloy as the Pension Fund Representative to communicate with L&A regarding the service. A motion was made by Trustee Walsh and seconded by Trustee Ambrose to authorize the Death Audit Service as discussed and to execute the Death Audit Service Authorization form provided by L&A. Motion carried unanimously by voice vote. 2019 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for reimbursement increased to $0.58 per mile effective January 1, 2019. 3 of 64 TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and discussed upcoming training opportunities. Trustees were reminded to submit all training certificates to L&A for recordkeeping. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: There were no applications for membership or withdrawals from the Fund. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: The Board discussed the application for non -duty disability benefits submitted by Miguel Mosqueda and noted he will be scheduled for his Annual Independent Medical Evaluations. Further discussion will be had at the next regular meeting. The Board discussed Officer Sabo requesting a change in location for his Annual Independent Medical Evaluation from Chicago to Elk Grove Village. The Board will contact the Board attorney for direction. Deputy Chief Olsen will contact Officer Sabo to instruct him to follow his original direction from the Board unless instructed to do otherwise. Approve Regular Retirement Benefits — David M. Struwing: The Board reviewed the regular retirement benefit calculation for David M. Struwing prepared by L&A. Officer Struwing had an entry date of 12/27/94, retirement date of 01/11/19, effective date of pension of 01/12/19, 51 years of age at date of retirement, 24 years of creditable service, applicable salary of $99,939.87, applicable pension percentage of 60%, amount of originally granted monthly pension of $4,996.99 and amount of originally granted annual pension of $59,963.92. A motion was made by Trustee Moody and seconded by Trustee Walsh to approve David M. Struwing's regular retirement benefit as calculated by Elk Grove Village. Motion carried unanimously by voice vote. Deputy Chief Nicholas Olsen exited the meeting at 4: 48 pm Deputy Chief Mike Gaspari exited the meeting at 4: 49 pm OLD BUSINESS: Review/Adopt — Municipal Compliance Report: The Board tabled this matter for the next scheduled meeting. NEW BUSINESS: Military Buy -Back — Steven F. Rohman Jr.: The Board noted that Steven F. Rohman Jr. completed his military service purchase to transfer 24 months of military service to the Elk Grove Village Police Pension Fund in the amount of $46,036.68. A motion was made by Trustee Ambrose and seconded by Trustee Moody to accept the payment in the amount of $46,036.68, recognize the purchase as paid in full and acknowledge Steven F. Rohman Jr. revised date of hire from January 3, 2005 to January 3, 2003. Motion carried by roll call vote. AYES: Trustees Torres, Ambrose, Moody and Walsh NAYS: None ABSENT: Trustee Molloy Review/Approve — Lauterbach & Amen, LLP Engagement Letter: The Board reviewed the L&A military service purchase calculation engagement letter at the rate of $350 per calculation. A motion was made by Trustee Ambrose and seconded by Trustee Moody to engage L&A for the service as presented. Motion carried unanimously by voice vote. 4 of 64 The Board discussed the cost from L&A for service calculations to be paid by the member. A motion was made by Trustee Walsh and seconded by Trustee Ambrose to authorize L&A to calculate any future service purchases not already provided by L&A per an existing engagement between L&A and the Fund, at a rate of $350. Motion carried unanimously by voice vote. The Board discussed engaging L&A to scan all retired member files for a one-time cost of $2,000 and to upload the files to the client portal. A motion was made by Trustee Walsh and seconded by Trustee Moody to approve the additional service from L&A as discussed. Motion carried unanimously by voice vote. Approve Annual Cost ofLivingAdjustments (COLAs) for Pensioners: The Board tabled this matter for the next scheduled meeting. Review Trustee Term Expirations and Election Procedures: The Board noted that the appointed Trustee position held by Trustee Ambrose is expiring in April 2019 and he wishes to remain on the Board. The Board will contact the Village to seek reappointment of Trustee Ambrose to the Board. ATTORNEY'S REPORT: Legal Updates: The Board reviewed the Legal and Legislative Update newsletter prepared by Reimer & Dobrovolny PC. Review/Adopt — Rules and Regulations: The Board reviewed the Rules and Regulations prepared by Reimer & Dobrovolny PC. A motion was made by Trustee Ambrose and seconded by Trustee Moody to adopt the Rules and Regulations provided by Reimer and Dobrovolny PC subject to revisions. Motion carried unanimously by voice vote. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Moody and seconded by Trustee Walsh to adjourn the meeting at 5:18 pm. Motion carried unanimously by voice vote. The next regular meeting of the Elk Grove Village Police Pension Fund will be held on Wednesday, March 13, 2019 at 5:30 pm. Respectfully submitted, Chris Torres, Board President Minutes approved by the Board of Trustees on Minutes prepared by Liz Failing, Pension Services Administrator, Lauterbach & Amen, LLP 5 of 64