HomeMy WebLinkAboutPOLICE PENSION - 07/20/2010 - POLICE PENSION MINUTES Minutes of the July 20, 2010 Elk Grove Village Police Pension Board meeting.
Vice President Krzywicki called the meeting to order at 3:40 p.m. Present were Greenberg, Torres,
Parrin,Tromp, and Financial Advisor Mary Tomanek. Also present was Village attorney Knickerbocker,
Mason, Zinnel, and Kirkpatrick. Ambrose arrived at 3:45 p.m.
The minutes of the last meeting, April 19, 2010 were read. Knickerbocker objected to the portion of the
minutes involving a summation of his statements in the discussion of the early retirement incentive the
Village offered to the Union in what was at that time a pending contract offer and with no decision yet
from the Department of Insurance on the early retirement incentive language. He agreed he had stated "If
the Department of Insurance opinion finds such an increase not proper for retirement purposes, the
Village would seek corrected language to allow for such an increase", however he felt he had said this in
two different sentences; and thus the intent of his statements were taken out of context. Moreover, he
wanted to emphasize his intent then was that if the Department of Insurance ruled against the early
retirement incentive language in the contract, and the Board had already made payments to a retiree at an
increased rate that should not have been made, then it would be the responsibility of that member for
reimbursement to the Fund. Krzywicki's notes of the meeting regarding a summary of Knickerbocker's
statements indicated the Village Attorney and Union are to come up with correct language so one
document is approved by both sides, for the Pension Board to decide. A motion was made by Torres,
seconded by Ambrose, to amend the minutes to include Krzywicki's summation of Knickerbocker's
statements to more readily reflect Knickerbocker's intent; and then to approve the minutes. Unanimous.
Tromp presented the Treasurer's Report, which included balance sheet dated June 2010 and disbursement
register. A motion to approve the Treasurer's Report was made by Parrin, seconded by Krzywicki.
Unanimous.
Old Business
Mary Tomanek presented an updated report on the status of the Fund's investments. A motion was made
by Krzywicki, seconded by Torres to take $1,500,000.00 from Ryan Labs, and $500,000.00 from
Macquaire Allegiance Capital, and move $1,000,000.00 to PIMCO Total Return D, and $1,000,000.00 to
Great Lakes Large Value.Unanimous.
New Business
The Board received the medical report from Dr. Katznelson regarding disabled member Schu►nert. Dr.
Katznelson indicates Schumert continues to be disabled.
The Board received notice of retirement and request for benefits from Officer Richard Mason. Mason
was informed of the Department of Insurance Advisory Opinion letter dated April 28, 2010 declaring the
early retirement incentive salary increase not proper for retirement calculations when the remaining
employees of the same rank and class receive a forfeiture of a salary increase. Since the non-retiring
Union employees are forfeiting a salary increase, the Board shall follow the guidelines set forth in the
Advisory Opinion letter. Mason, however, disagrees, and feels the increase should be included in this
calculation. He was informed the Board had arranged for a hearing to address the matter, tentatively
scheduled for August 18, 2010, pending confirmation from attorney Reimer. Until then, his retirement
calculation is based on the current salary rate, and the Finance Department provided the distribution based
on that as follows:
Date of birth: April 23, 1957
Date of hire: January 03, 1980
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(July 20, 2010 continued)
Date of retirement: May 15, 2010
Date of pension: May 16, 2010
Creditable service: 30 years, 4 months 13 days
Original rate of pension: 75%
Salary: $79,368.50
Original pension amount: $59, 526.38
Original monthly benefit: $4,960.53
First month prorated amount: $2,560.27
Eligible for increase: May 01, 2012
Tile Board received notice of retirement and request for benefits from Deputy Chief Dion Zinnel. The
Department of Insurance Advisory Opinion letter cited above also addressed when salary increases for
those retiring can be included in a retirement calculation; specifying if those who remain working receive
a salary increase that is deferred to later in the year or given in addition to the salary increase due the
following year, then an increase for a retiree can be included in a retirement calculation. The Village
passed a salary plan ordinance for non-union Police and Fire employees, which Zinnel was, allowing for
the salary increase for 2010 to be deferred until April 18, 2011. Since all non-union members are treated
equally among class and rank for the salary deferral, a motion was made by Parrin, seconded by
Krzywicki, to approve Zinnel's calculation including the 3.25% salary increase he received just prior to
retirement. A roll call vote was taken, with Greenberg, Torres, and Ambrose all voting Aye. The Finance
Department provided the distribution based on that as follows:
Date of birth: August H, 1958
Date of hire: January 03, 1980
Date of retirement: June 01, 2010
Date of pension: June 02, 2010
Creditable service: 30 years 4 months 30 days
Original rate of pension: 75%
Salary: $124, 855.82
Original pension amount: $93, 641.87
Original monthly benefit: $7,803.49
First month prorated amount: $7,543.37
Eligible for increase: September 01, 2013
(July 20, 2010 continued)
The Board received a notice of retirement and request for benefits from Officer Larry Nagel. The Finance
Department provided the distribution as follows:
Date of birth: September 30, 1953
Date of hire: January 03, 1980
Date of retirement: July 23, 2010
Date of pension: July 24, 2010
Creditable service: 30 years 6 months 12 days
Original rate of pension: 75%
Salary: $79,368.50
Original pension amount: $59, 526.38
Original monthly benefit: $4,960.53
First month prorated amount: $1,280.14
Eligible for increase: August 01, 2011
A motion was made by Parrin, seconded by Krzywicki,to approve the distribution calculation.
Unanimous.
The Board received the following bills:
$633.95 for attorney Reirner re: February legal fees
$131.25 for attorney Reimer re: May legal fees
$1,170.00 for Inspee Associates re: Schumert medical evaluation
$ 8,000.00 for Department of Insurance re: Annual compliance fee
A motion was made by Parrin, seconded by Torres, to pay these bills. Unanimous.
Greenberg announced he would like to attend the IPPFA Midwest Pension Conference to be held October
5-8, 2010 in St. Louis, pending Police Department approval. Arnbrose indicated the necessary expenses
for attendance would be paid by the Fund.
Nominations for Board offices were as follows:
Greenberg nominated Ambrose for President, seconded by Krzywicki. Unanimous.
Greenberg nominated Krzywicki for Vice President, seconded by Parrin. Unanimous.
Krzywicki norninated Greenberg for Secretary, seconded by Ambrose. Unanimous.
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(July 20, 2010 continued)
Greenberg nominated Torres for Assistant Secretary, seconded by Krzywicki. Unanimous.
Ambrose announced the hearing for Mason to be August 18, 2010 at 3:30 p.m. at 901 Wellington, Elk
Grove Village, Illinois (pending notification from attorney Reimer).
Ambrose announced the next regular Board meeting to be October 12, 2010 at 3:30 p.m. at 901
Wellington, Elk Grove Village, Illinois.
A motion to adjourn the meeting was made by Krzywicki, seconded by Parrin. Unanimous.
Myles Greenberg,
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Secretary, Police Pension Board
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