Police Pension Board

Agenda Village of Glen Ellyn Police Pension Board Meeting Wednesday, October 25, 2023 4:30 PM Glen Ellyn Civic Center, Room 306 Visitors are most welcome to attend all meetings of the Police Pension Board and can find copies of the Agenda at the meeting or online at www.glenellyn.org prior to the meeting. Any individual with a disability requiring reasonable accommodation in order to participate in a meeting should contact The Village of Glen Ellyn ADA Coordinator, 630-469-5000, at least five (5) business days in advance of the next scheduled meeting. All matters on the Agenda may be discussed, amended, and acted upon. A. Call to Order B. Roll Call C. Public Comment D. Approval of Minutes 1) July 19, 2023 Regular Meeting E. Accountant's Report 1) Lauterbach and Amen will present the monthly financial report 2) Presentation and approval of bills as listed in the monthly financial report 3) Additional Bills 4) Cash Management Policy F. Investment Report 1) IPOPIF - Versus Advisory Inc. G. Communication and Reports 1) Affidavits of Continued Eligibility H. Trustee Training Updates 1) Approval of Trustee Training Registration Fees & Reimbursable Expenses I. Approval of Membership/Withdrawals from Fund 1) Applications for Membership – Robert Gibson & Wilber Mojarro Martinez 2) Separation of Service – Ryan Rader J. Applications for Retirement/Disability Benefits 1) Approve Non-Duty Disability Benefits - Thomas Hartzell K. Old Business 1) Portability Updates - Kevin Lombard & Caitlin Tabor 2) Benefit Discrepancy - Thomas Roman L. New Business 1) Municipal Compliance Report 2) Establish 2024 Board Meeting Dates Village of Glen Ellyn Page 1 of 39 Police Pension Board Agenda October 25, 2023 Page 2 3) Engagement Letter - Lauterbach & Amen, LLP M. Attorney Report 1) Legal Updates N. Adjourn to Exec Session, if needed O. Adjourn Village of Glen Ellyn Page 2 of 39 Village of Glen Ellyn Minutes Village of Glen Ellyn Police Pension Board Meeting Regular Meeting July 19, 2023 4:30 PM Civic Center Room 306 Board or Police Pension Date: July 19, 2023 Commission: Meeting: Regular Called to 4:30 p.m. Order: Quorum: No Adjourned: 5:06 p.m. MEMBER ATTENDANCE: John Adduci President Present William Housey Jr. Trustee Present James King Trustee Present Jim Monson Trustee Present Anthony Terranova Trustee Present Also Present: Larry Noller Finance Director Patrick Brankin Assistant Finance Director Elisa Pollina Recording Secretary Richard Lamb Lauterbach & Amen Public: A. CALL TO ORDER The July 19, 2023 meeting of the Police Pension Board was called to order by President Adduci at 4:30 pm at the Glen Ellyn Civic Center, Room 306. B. PUBLIC COMMENT – None Page 3 of 39  Police Pension 2 July 19, 2023 C. APPROVAL OF MINUTES FROM APRIL 19, 2023 MEETING – Trustee Monson requests an amendment to the minutes on page 4 in order to rectify the spelling of Nicolas Srejma. MOTION TO APPROVE MINUTES FROM APRIL 19, 2023 POLICE PENSION BOARD MEETING AS AMMENDED MOTION BY: Anthony Terranova, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL D. Accountant’s Report 1. Lauterbach and Amen present the monthly financial report: Richard Lamb from Lauterbach and Amen reviews the financial report month ending May 31, 2023 with the Police Pension Board. Statement of Net Position as of May 31, 2023 – Total Assets - $35,109,797.16, Total Contributions - $1,037,576.36, Total Additions - $2,293,871.96, Pension Benefits - $1,132,197.48; Change Position- $1,120,131,12. Revenue Report as of May 31, 2023 – Total Contributions – $207,771.95; IPOPIF Consolidated Pool – Unrealized – ($496,583.51); Total Revenue ($261.987.34). Expense Report as of May 31, 2023 – Total Expenses - $235,167.51 Lamb reviews the Contribution Report, Payroll Report and Check Report with the Police Pension Board. After reviewing the contribution report, Trustee Terranova requests that Lauterbach reviews the spelling of Janet Terranova and Carrie Casino Nemchock. It appears that their married and maiden names might have been mistakenly switched. Richard Lamb states the contribution team will look into those names and will make the necessary corrections. Trustee Housing motions to accept the financial report as presented; Trustee Monson seconds the motion. APPROVAL [UNANIMOUS] MOVER: William Housey, Trustee SECONDER: James Monson, Trustee AYES: Adduci, Terranova, Monson, Housey, King E. Investment Report 1. IPOPIF Versus Advisory Inc. – The Police Pension received and reviewed the performance of the IPOPIF report. F. Communication and Reports 1. Active Member File Maintenance – Richard Lamb announces that by the end of Page 4 of 39  Police Pension 3 July 19, 2023 August, early September, letters will be sent to active members, requesting any missing information needed to complete their files. G. Trustee Training Updates 1. Trustee Training Registration Fees and Reimbursable Expenses – Trustee Monson provides positive feedback on the training, expressing that it was highly beneficial. Trustee Housey makes a motion to approve reimbursement expenses for the following trustees: Trustee Monson - Reimbursement from May 24, 2023, in the amount of $565.96. Trustee Terranova - Reimbursement from May 25, 2023, in the amount of $555.49. Trustee King - Reimbursement from June 9, 2023, in the amount of $554.18. The motion is seconded by Trustee Terranova. APPROVAL [UNANIMOUS] MOVER: William Housey, Trustee SECONDER: Anthony Terranova, Trustee AYES: Adduci, Terranova, Monson, Housey, King H. Approval of Membership / Withdrawals from Fund 1. Applications for Membership – Alexandra Bacza, Alexander Gutter, Robert Sanchez. Trustee Terranova motions to accept officers Alexandra Bacza, Alexander Gutter and Robert Sanchez into the Police Pension effective on July 14, 2023. Trustee King seconds the motion. 2. Separation of Service – Tyler Schaefer – No action needed by the Police Pension. This is informational only. I. APPLICATIONS FOR RETIREMENT / DISABILITY BENEFITS 1. Motion to approve retirement pension for Norman Webber in the monthly amount of $9,181.90 effective May 6, 2023. Trustee Monson motions to approve retirement pension for Norman Webber in the monthly amount of $9,181.90 effective May 6, 2023. Trustee King seconds the motion. J. OLD BUSINESS - None K. NEW BUSINESS 1. Motion to accept the Department of Insurance Report for the fiscal year ended December 31, 2022. Trustee Monson motions to accept the Department of Insurance Report for the fiscal year ended December 31, 2022. Trustee King seconds the motion. Page 5 of 39  Police Pension 4 July 19, 2023 2. Motion to approve a Resolution Appointing Authorizing Agents – Finance Director Noller informs the Police Pension that he will be departing from his current position at the Village of Glen Ellyn to pursue a new opportunity in another village. The Police Pension will need to appoint a new authorizing agent to take over his responsibilities. Noller suggests appointing Assistant Finance Director Brankin as his replacement. Trustee Terranova motions to approve a Resolution Appointing Patrick Brankin and James Monson as authorized agents; Trustee Housey seconds the motion. 3. Portability Update – Kevin Lombard and Caitlyn Tabor – This will be added to next month’s agenda. 4. Board of Officer Elections – President, Vice President, Secretary and Assistant – Trustee Terranova expresses gratitude to President Adduci for his exceptional service as President of the Police Pension Board. Additionally, Trustee Terranova nominates Trustee James Monson to assume the role of President for the next term. Trustee Monson accepts the nomination. Subsequently, Trustee Monson nominates Trustee Terranova for the position of Secretary, and Trustee Terranova accepts the nomination. President Adduci motions to appoint the following officers for the next term of the Police Pension Board: Trustee Monson as President Trustee Terranova as Secretary Trustee Housey as Vice President President Adduci as Assistant Secretary Trustee King seconds the motion. 5. FOIA Officer and OMA Designee – Finance Director Noller discusses the necessity for the Police Pension to appoint a FOIA Officer and an OMA Designee. Having designated individual(s) will ensure that there is a point of contact readily available to address any questions or concerns that may arise. Trustee Monson volunteers to take on this responsibility. Trustee Housey motions to appoint President Monson as the FOIA Officer and OMA Designee; Trustee Terranova seconds the motion. L. ATTORNEY’S REPORT – The Police Pension Board reviews the Legal and Legislative Update. M. CLOSED SESSION, IF NEEDED – Closed session is not needed. N. ADJOURNMENT – Trustee Monson moves and Trustee Terranova seconds to adjourn the meeting. The meeting was adjourned at 5:06 p.m. Submitted by Elisa Pollina, Recording Secretary Reviewed by Assistant Finance Director Brankin Page 6 of 39 GLEN ELLYN POLICE PENSION FUND Month Ended: September 30, 2023 Market Value Summary: Current Period Year to Date Beginning Balance $36,312,415.88 $33,923,872.56 Contributions $0.00 $86,963.38 Withdrawals ($60,000.00) ($322,775.85) Transfers In/Out $0.00 $0.00 Income $19,109.96 $179,604.35 Administrative Expense ($640.35) ($5,761.49) Investment Expense ($699.96) ($10,600.54) Investment Manager Fees ($38.80) ($3,339.76) IFA Loan Repayment $0.00 ($26,731.74) Adjustment $0.00 $4,154.93 Realized Gain/Loss $5,299.24 $28,900.05 Unrealized Gain/Loss ($1,082,979.74) $1,338,180.34 Ending Balance $35,192,466.23 $35,192,466.23 Performance Summary: Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: (2.92%) (2.44%) 4.53% 11.59% N/A N/A N/A (3.09%) 04/01/2022 Contact Information: Illinois Police Officers’ Pension Investment Fund, 456 Fulton Street, Suite 402 Peoria, Illinois 61602 Phone: (309) 280-6464 Email: Info@ipopif.org Page 1 of 3 Page 7 of 39 GLEN ELLYN POLICE PENSION FUND Fund Name: IPOPIF Pool Month Ended: September 30, 2023 Market Value Summary: Unit Value Summary: Current Period Year to Date Current Period Year to Date Beginning Balance $36,312,415.88 $33,923,872.52 Beginning Units 3,559,835.460 3,577,008.318 Contributions $0.00 $97,792.64 Unit Purchases from Additions 0.000 10,047.336 Withdrawals ($60,000.00) ($322,775.85) Unit Sales from Withdrawals (5,912.324) (33,132.517) Transfers In/Out $0.00 ($10,829.21) Ending Units 3,553,923.136 3,553,923.136 Income $19,109.96 $179,604.34 Administrative Expense ($640.35) ($5,761.49) Period Beginning Net Asset Value per Unit $10.200588 $9.483855 Investment Expense ($699.96) ($10,600.54) Period Ending Net Asset Value per Unit $9.902428 $9.902428 Investment Manager Fees ($38.80) ($3,339.76) IFA Loan Repayment $0.00 ($26,731.74) Adjustment $0.00 $4,154.93 Realized Gain/Loss $5,299.24 $28,900.05 Unrealized Gain/Loss ($1,082,979.74) $1,338,180.34 Ending Balance $35,192,466.23 $35,192,466.23 Performance Summary: GLEN ELLYN POLICE PENSION FUND Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: (2.92%) (2.44%) 4.52% 11.58% N/A N/A N/A (2.71%) 04/06/2022 Contact Information: Illinois Police Officers’ Pension Investment Fund, 456 Fulton Street, Suite 402 Peoria, Illinois 61602 Phone: (309) 280-6464 Email: Info@ipopif.org Page 2 of 3 Page 8 of 39 Statement of Transaction Detail for the Month Ending 09/30/2023 GLEN ELLYN POLICE PENSION FUND Trade Date Settle Date Description Amount Unit Value Units IPOPIF Pool 09/15/2023 09/18/2023 Redemptions (60,000.00) 10.148294 (5,912.3238) Page 3 of 3 Page 9 of 39  September 2023 Statement Notes Monthly Asset Flows New Asset Transfers Cash Contributions Cash Withdrawals Zero $59.5 million $36.5 million Expenses Paid Administrative Investment Investment Expenses Expenses Manager Fees $166,634.99 $182,149.75 $10,097.25 • Expenses are paid from the IPOPIF Pool and allocated proportionately by member value. • Investment expenses exclude investment manager fees. IPOPIF Investment Pool Details Date Units Value Unit Price 08/31/23 926,363,910.0401 9,449,456,844.61 10.200588 09/30/23 928,684,585.1817 9,196,231,782.40 9.902428 A spreadsheet with complete unit and expense detail history is linked on the Article 3 Fund Reports page as -IPOPIF Trust Fund Unit Details- NAV and Receivable Calculations Under Development The IPOPIF Valuation and Cost Rule, AR-2022-01, stipulates that the Net Asset Value (NAV) for each Participating Police Pension Fund will include receivables representing proportionate amounts due from late-transferring pension funds for all Costs, IFA Loan Repayments, and interest. These calculations are under development. Resources • Monthly statement overview: https://www.ipopif.org/reports/article-3-reports/ • Monthly financial reports: https://www.ipopif.org/reports/monthly-financial-reports/ • Monthly and quarterly investment reports: https://www.ipopif.org/reports/investment- reports/ • Board Meeting Calendar: https://www.ipopif.org/meetings/calendar/ • Daily value and transaction information for Participating Police Pension Funds is now available to account representatives via the NRS reporting portal. Illinois Police Officers’ Pension Investment Fund 309-280-6464 456 Fulton Street, Suite 402 info@ipopif.org Peoria, Illinois 61602 Page 10 of 39 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: September 30, 2023 Market % of Target Inception 1 Mo Fiscal YTD YTD 1 Yr Inception Value Portfolio (%) Date Total Fund with Member and Transition Accounts 9,196,231,760 100.0 100.0 -2.9 -2.4 4.5 11.6 -2.7 03/01/22 Policy Index -3.0 -2.4 4.9 11.8 -2.8 Policy Index- Broad Based -3.8 -3.4 5.9 14.8 -4.4 IPOPIF Investment Portfolio 9,196,231,760 100.0 100.0 -2.9 -2.4 4.5 11.6 -3.3 04/01/22 Policy Index -3.0 -2.4 4.9 11.8 -3.2 Policy Index- Broad Based -3.8 -3.4 5.9 14.8 -5.0 Growth 4,923,964,636 53.5 58.0 -4.1 -3.6 7.5 19.4 -4.2 04/01/22 Growth Benchmark -4.1 -3.6 7.6 18.8 -4.5 RhumbLine Russell 1000 Index 1,884,842,515 20.5 23.0 -4.7 -3.1 13.0 21.2 3.0 03/15/22 Russell 1000 Index -4.7 -3.1 13.0 21.2 3.1 RhumbLine Russell 2000 Index 427,987,216 4.7 5.0 -5.9 -5.1 2.5 8.9 -4.2 03/15/22 Russell 2000 Index -5.9 -5.1 2.5 8.9 -3.8 SSgA Non-US Developed Index 1,555,687,019 16.9 18.0 -3.3 -4.1 7.1 24.4 1.8 03/10/22 MSCI World ex U.S. (Net) -3.4 -4.1 6.7 24.0 1.4 SSgA Non-US Developed SC Index 434,758,925 4.7 5.0 -4.3 -3.3 2.0 17.4 -4.8 03/10/22 MSCI World ex U.S. Small Cap Index (Net) -4.5 -3.5 1.8 17.3 -5.0 SSgA Emerging Markets Equity Index 620,688,961 6.7 7.0 -2.7 -3.2 1.7 12.2 -6.4 03/10/22 MSCI Emerging Markets (Net) -2.6 -2.9 1.8 11.7 -5.4 Income 1,464,544,480 15.9 16.0 -1.7 -0.5 4.5 10.6 -3.4 04/01/22 Income Benchmark -1.7 -0.6 4.3 10.3 -1.8 SSgA High Yield Corporate Credit 923,848,187 10.0 10.0 -1.3 0.5 6.1 10.8 -0.9 03/18/22 Bloomberg U.S. High Yield Very Liquid Ind -1.3 0.3 5.8 10.4 -1.1 SSgA EMD Hard Index Fund 540,696,293 5.9 6.0 -2.5 -2.2 1.8 10.1 -4.1 03/14/22 JPM EMBI Global Diversified Index -2.6 -2.2 1.8 10.0 -3.9 Inflation Protection 790,024,261 8.6 9.0 -3.8 -4.0 -2.3 -1.6 -7.6 04/01/22 Inflation Protection Benchmark -3.0 -2.7 -0.6 0.9 -8.2 SSgA US TIPS Index 272,872,066 3.0 3.0 -0.1 0.5 2.0 3.3 -1.4 03/17/22 Blmbg. U.S. TIPS 0-5 Year -0.2 0.4 1.9 3.2 -1.2 SSgA REITs Index 350,899,762 3.8 4.0 -7.0 -7.4 -2.1 2.6 -14.1 03/16/22 Dow Jones U.S. Select REIT -7.0 -7.4 -2.1 2.6 -14.0 Principal USPA 166,252,433 1.8 2.0 -2.6 -3.9 -8.7 -14.3 -7.8 04/06/22 Effective 5/1/2023: Policy Index constituents include 1% 90 day T-bill, 13% Bloomberg 1-3 Year Gov/Credit Index, 3% Bloomberg U.S. Aggregate Index, 3% Bloomberg U.S. TIPS 0-5 Year, 10% Bloomberg U.S. Corporate High Yield Index, 6% JPM EMBI Global Diversified, 23% Russell 1000, 5% Russell 2000, 18% MSCI World Ex US (Net), 5% MSCI World Ex US Small Cap (Net), 7% MSCI Emerging Markets (Net), 4% Wilshire U.S. REIT Index and 2% NFI-ODCE Equal Weight. Broad Based Policy Index constituents: 70% MSCI ACWI IMI (Net), 30% Bloomberg Global Multiverse. Prior to July 2022, SSgA EMD Hard Index Fund was iShares JPM EMD Index ETF and benchmark returns reflect JPM EMBI Global Core Index. The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability.NFI-ODCE Equal Weighted 1 Index return not available at time of production. Page 11 of 39 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: September 30, 2023 Market % of Target Inception 1 Mo Fiscal YTD YTD 1 Yr Inception Value Portfolio (%) Date Risk Mitigation 2,017,600,856 21.9 17.0 -0.5 -0.1 1.6 2.7 -0.8 04/01/22 Risk Mitigation Benchmark -0.5 0.1 1.6 2.8 -0.8 SSgA Core Fixed Income Index 399,348,805 4.3 3.0 -2.5 -3.2 -1.0 0.7 -6.0 03/17/22 Blmbg. U.S. Aggregate Index -2.5 -3.2 -1.2 0.6 -6.0 SSgA Short-Term Gov't/Credit Index 1,336,350,068 14.5 13.0 -0.1 0.7 1.9 2.8 0.1 03/17/22 Blmbg. 1-3 Year Gov/Credit index 0.0 0.7 1.9 2.8 0.1 Cash 281,901,983 3.1 1.0 0.4 1.3 3.6 4.2 2.9 03/22/22 90 Day U.S. Treasury Bill 0.5 1.3 3.6 4.5 3.3 IPOPIF Pool Fixed Income Transition 97,527 0.0 - Transition Accounts - 0.0 - Member Funds - 0.0 - Effective 5/1/2023: Policy Index constituents include 1% 90 day T-bill, 13% Bloomberg 1-3 Year Gov/Credit Index, 3% Bloomberg U.S. Aggregate Index, 3% Bloomberg U.S. TIPS 0-5 Year, 10% Bloomberg U.S. Corporate High Yield Index, 6% JPM EMBI Global Diversified, 23% Russell 1000, 5% Russell 2000, 18% MSCI World Ex US (Net), 5% MSCI World Ex US Small Cap (Net), 7% MSCI Emerging Markets (Net), 4% Wilshire U.S. REIT Index and 2% NFI-ODCE Equal Weight. Broad Based Policy Index constituents: 70% MSCI ACWI IMI (Net), 30% Bloomberg Global Multiverse. Prior to July 2022, SSgA EMD Hard Index Fund was iShares JPM EMD Index ETF and benchmark returns reflect JPM EMBI Global Core Index. The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability.NFI-ODCE Equal Weighted 2 Index return not available at time of production. Page 12 of 39  Certified Trustee Training Organization: Glen Ellyn Police Pension Fund Year: 2023 James Monson Hours Date Hours Required Type of Training Completed Completed Cert on File 1 8 IPPFA 8 5/23/2023 Yes 2 3 4 5 6 J James King Hours Date Hours Required Type of Training Completed Completed Cert on File 1 8 IPPFA 8 5/23/2023 Yes 2 3 4 5 6 Larry Noller Hours Date Hours Required Type of Training Completed Completed Cert on File 1 8 2 3 4 5 6 Anthony Terranova Hours Date Hours Required Type of Training Completed Completed Cert on File 1 8 IPPFA 8 5/23/2023 Yes 2 3 4 5 6 John Adducci Hours Date Hours Required Type of Training Completed Completed Cert on File 1 8 2 3 4 5 6 William Housey Hours Date Hours Required Type of Training Completed Completed Cert on File 1 2 3 4 5 6 Page 1 of 1 43 of 81 Page 13 of 39  2023 IPPFA Trustee Training Opportunities IPPFA ONLINE SEMINAR COURSE WHEN: Ongoing • Online 8 hr. seminar (Recorded from the 2021 MidAmerican Pension Conference) WHERE: IPPFA Website: www.ippfa.org/education/online-classes/ COST: IPPFA MEMBER: $275.00/seminar IPPFA NON-MEMBER: $525.00/seminar This online seminar agenda includes: • Pension Obligation Bond Panel • Consolidation Update Panel • Mock Disability Trial • Keynote Speaker Admiral Foggo • Ask an Attorney and Legal Updates • Covid-19 Vaccinations and Workplace Rules • Ask an Administrator • Re-Entry into Actie Service and Hot it has Evolved Over Time -this online seminar satisfies 8 hours of the required continuing pension trustee training · IPPFA IN PERSON SEMINAR COURSE WHEN: November 14, 2023 WHERE: John A. Logan College 700 Logan College Road, F104 Carterville, IL 62918 TIME: 8:00 a.m. – 4:30 p.m. COST: IPPFA MEMBER: $225.00 IPPFA NON-MEMBER: $450.00 44 of 81 Page 14 of 39  16-hour Certified Trustee Programs* offered through IPPFA IPPFA ONLINE Certified Trustee Program COST: IPPFA MEMBER: $ 550.00 IPPFA NON-MEMBER: $1,100.00 Registration is online at the IPPFA website www.ippfa.org/education/trustee-program/ IPPFA IN PERSON Certified Trustee Program WHEN: December 5-6, 2023 TIME: 7:30 a.m. – 5:00 p.m. WHERE: NIU Outreach Campus 1120 E. Diehl Road, Room 266 Naperville, IL 60563 COST: IPPFA MEMBER: $500.00 IPPFA NON-MEMBER: $1,000.00 *Walk-ins will be charged an additional $25 Registration is online at the IPPFA website www.ippfa.org/education/trustee-program/ *On December 18, 2019, Governor J.B. Pritzker signed SB 1300, making it Public Act 101-0610. This act will consolidate all Article 3 and 4 pension fund's investment assets. Under Public Act 101-0610, training requirements have now been reduced from 32-hours to 16-hours of new trustee training, however all pension trustees will still need 4-hours of mandatory consolidation transition training. All Article 3 & 4 Pension Trustees elected or appointed are required to complete the 16-hour trustee certification course within 18 months of election or appointment to the board. 45 of 81 Page 15 of 39  2023 IPFA FALL PENSION SEMINAR Friday November 3, 2023 Red Shift Empress Banquets 200 East Lake Street Addison, IL 60101 630-279-5900 IN-PERSON SEMINAR REGISTRATION FORM Municipality, (please print or type) District, or Firm: _____________________________________________ Address: _________________________________________________ City: ____________________________________________ , IL Zip: ____________ Phone: _____________________________ SEMINAR FEES: IPFA Members: $ 200.00 Non - Members: $ 250.00 Walk-In Registration: $ 270.00 Avoid the walk-in surcharge – register on or before Monday, October 30, 2023 First Name: Last Name: e-mail Address: Member Non-Member ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ TOTAL CHECK ENCLOSED $_______.____ Payment must accompany this Registration Form and be received in our office on or before Monday, October 30, 2023 to qualify for lower rates. Reservations received after the above date will be charged walk-in registration fee. Requests for refunds also must be received on or before Monday, October 30 for full fee credit. No credits of seminar fees after this date. Please mail the completed form to IPFA, 188 Industrial Drive, Suite 134, Elmhurst, IL 60126-1608, fax it to 630-833-2412, or scan & e-mail to ipfa@aol.com. Any questions, call 630-833-2405. For Tax Reporting Purposes our Federal I.D. Number is: 36-2650496. The Illinois Pension Statute requires continuing education for all pension board members. This seminar provides up to 8 hours of credits. For IPFA Office Use: Date: ___________ Check #: ___________ Amount: _____________ Payer: ________________________________________ ___________________________________________________________________________ 46 of 81 Page 16 of 39 47 of 81 Page 17 of 39  0123456ÿ8ÿ09 ÿ0123456ÿ ÿÿ ÿ!ÿ"#!ÿ"$$%&#!ÿ'&ÿ(ÿ)*%&+ÿ"#!ÿ'&ÿ,ÿ)-&'./0'1+ÿ%"ÿ$#1&%# 2%"'!ÿ'311ÿ"'ÿ'43&'!ÿ%ÿ$"'&&$"ÿ&#ÿ1"56"#!"!ÿ'31ÿ'&."&%#ÿ'"&#&#/ 0"ÿ%#1&11ÿ%7ÿ"ÿ"1ÿ89ÿ0%3'1ÿ&#ÿ0&'ÿ.'1ÿ:"'ÿ"1ÿ"ÿ'31;ÿ<#ÿ"!!&&%#=ÿ'311ÿ631 %6$ÿ"ÿ6&#&636ÿ%7ÿ&/0ÿ0%3'1ÿ%7ÿ%#&#3&#/ÿ'31ÿ!3"&%#ÿ"##3":ÿ0'"7'; >?@ÿBCCDEFDGÿHIEDJDKLCÿM@LNI@ÿKOFPDQ@G R?DGÿJ@ORDSJLRDFEÿROLDEDENÿLRÿEFÿJ?LON@ÿRFÿLCCÿROIGR@@GT UCDJVÿ?@O@ÿRFÿW@NDEÿXFIOÿK@EGDFEÿROIGR@@ÿROLDEDENT Y0&1ÿ'"&#&#/ÿ&1ÿ$'%Z&!!ÿ%#&#ÿ"#!ÿ&#ÿ"%'!"#ÿ[&0ÿ1"3%':ÿ'43&'6#1; \@EGDFEÿ>OIGR@@ÿU@ORDSJLRDFEÿ]LJRÿ^?@@R ÿDE ÿ KLORE@OG?DK `DR? abÿdefÿghijÿkfjlmneolÿpjqhprnoqÿspmntujÿvÿepÿspmntujÿwÿxjolneoÿmpflmjjÿtjpmnythmneoz xujhljÿteomhtmÿflÿ{dÿj|hnuÿhmÿxjolneompflmjjl}n|u~epq~ 48 of 81 Page 18 of 39  Glen Ellyn Police Pension Meeting 10/25/2023 4:30 PM Board Department: Finance 535 Duane Street Department Head: Patrick Brankin Glen Ellyn, IL 60137 Category: Personnel Prepared By: Patrick Brankin AGENDA ITEM (ID DOC ID: 2023-1044 # 2023-1044) Approve Non-Duty Disability Benefits - Thomas Hartzell Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: Page 19 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND PUBLIC ACT 95-0950 MUNICIPAL COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 Page 20 of 39 October 5, 2023 Members of the Pension Board of Trustees Glen Ellyn Police Pension Fund Glen Ellyn, Illinois Enclosed please find a copy of your Municipal Compliance Report for the Glen Ellyn Police Pension Fund for the fiscal year ended December 31, 2022. We have prepared the report with the most recent information available at our office. Should you have more current information, or notice any inaccuracies, we are prepared to make any necessary revisions and return them to you. The President and Secretary of the Pension Fund are required to sign the report on page 3. If not already included with the enclosed report, please also include a copy of the Pension Fund’s most recent investment policy. The signed Public Act 95-0950 - Municipal Compliance Report must be provided to the Municipality before the tax levy is filed on the last Tuesday in December. We are sending the report via email to promote an environmentally-friendly work atmosphere. If you have any questions regarding this report, please contact your Client Manager or PSA. Respectfully submitted, LAUTERBACH & AMEN, LLP Page 21 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2022 The Pension Board certifies to the Board of Trustees of the Village of Glen Ellyn, Illinois on the condition of the Pension Fund at the end of its most recently completed fiscal year the following information: 1) The total cash and investments, including accrued interest, of the fund at market value and the total net position of the Pension Fund: Current Preceding Fiscal Year Fiscal Year Total Cash and Investments (including accrued interest) $33,989,666 $38,947,824 Total Net Position $33,989,666 $38,947,824 2) The estimated receipts during the next succeeding fiscal year from deductions from the salaries of police officers and from other sources: Estimated Receipts - Employee Contributions $439,300 Estimated Receipts - All Other Sources Investment Earnings $2,209,300 Municipal Contribution $2,152,136 3) The estimated amount required during the next succeeding fiscal year to (a) pay all pensions and other obligations provided in Article 3 of the Illinois Pension Code, and (b) to meet the annual requirements of the fund as provided in Sections 3-125 and 3-127: (a) Pay all Pensions and Other Obligations $3,340,200 (b) Annual Requirement of the Fund as Determined by: Illinois Police Officers' Pension Investment Fund $1,712,697 Private Actuary - Foster & Foster Recommended Municipal Contribution $2,152,136 Statutory Municipal Contribution N/A Page 1 Page 22 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2022 4) The total net income received from investment of assets along with the assumed investment return and actual investment return received by the fund during its most recently completed fiscal year compared to the total net income, assumed investment return, and actual investment return received during the preceding fiscal year: Current Preceding Fiscal Year Fiscal Year Net Income Received from Investment of Assets ($4,760,732) $3,890,170 Assumed Investment Return Illinois Police Officers' Pension Investment Fund 6.800% 6.500% Private Actuary - Foster & Foster 6.500% 6.500% Actual Investment Return (13.054)% 10.427% 5) The total number of active employees who are financially contributing to the fund: Number of Active Members 41 6) The total amount that was disbursed in benefits during the fiscal year, including the number of and total amount disbursed to (i) annuitants in receipt of a regular retirement pension, (ii) recipients being paid a disability pension, and (iii) survivors and children in receipt of benefits: Total Amount Number of Disbursed (i) Regular Retirement Pension 30 $2,249,857 (ii) Disability Pension 2 $88,086 (iii) Survivors and Child Benefits 5 $299,106 Totals 37 $2,637,048 Page 2 Page 23 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2022 7) The funded ratio of the fund: Current Preceding Fiscal Year Fiscal Year Illinois Police Officers' Pension Investment Fund 68.83% 67.83% Private Actuary - Foster & Foster 67.35% 67.48% 8) The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability: Unfunded Liability: Illinois Police Officers' Pension Investment Fund $17,197,437 Private Actuary - Foster & Foster $19,304,194 The accrued liability is the actuarial present value of the portion of the projected benefits that has been accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions employed in the valuation. The unfunded accrued liability is the excess of the accrued liability over the actuarial value of assets. 9) Please see attached Investment/Cash Management policy if applicable Please see Notes Page attached. CERTIFICATION OF MUNICIPAL POLICE PENSION FUND COMPLIANCE REPORT The Board of Trustees of the Pension Fund, based upon information and belief, and to the best of our knowledge, hereby certify pursuant to §3-143 of the Illinois Pension Code 40 ILCS 5/3-143, that the preceding report is true and accurate. Adopted this ___________ day of __________, 2023 President __________________________________________________ Date ___________________ Secretary __________________________________________________ Date ___________________ Page 3 Page 24 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2022 INDEX OF ASSUMPTIONS 1) Total Cash and Investments - as Reported at Market Value in the Audited Financial Statements for the Years Ended December 31, 2022 and 2021. Total Net Position - as Reported in the Audited Financial Statementsfor the Years Ended December 31, 2022 and 2021. 2) Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the Year Ended December 31, 2022 plus 5.66% Increase (Actuarial Salary Increase Assumption) Rounded to the Nearest $100. Estimated Receipts - All Other Sources: Investment Earnings - Cash and Investments as Reported in the Audited Financial Statements for the Year Ended December 31, 2022, times 6.5% (Actuarial Investment Return Assumption) Rounded to the Nearest $100. Municipal Contributions - Recommended Tax Levy Requirement as Reported by Foster & Foster, Actuarial Valuation for the Year Ended December 31, 2022. 3) (a) Pay all Pensions and Other Obligations - Total Non-Investment Deductions as Reported in the Audited Financial Statements for the Year Ended December 31, 2022, plus a 25% Increase, Rounded to the Nearest $100. (b) Annual Requirement of the Fund as Determined by: Illinois Police Officers' Pension Investment Fund - Suggested Amount of Tax Levy as Reported in the December 31, 2022 Actuarial Valuation. Private Actuary - Foster & Foster: Recommended Amount of Tax Levy as Reported by Foster & Foster in the December 31, 2022 Actuarial Valuation. Statutorily Required Amount of Tax Levy - No statutorily required amount has been provided in a December 31, 2022 Private Actuarial Valuation, at the time of this report. Page 4 Page 25 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2022 INDEX OF ASSUMPTIONS 4) Net Income Received from Investment of Assets - Investment Income (Loss) net of Investment Expense, as Reported in the Audited Financial Statements for the Years Ended December 31, 2022 and 2021. Assumed Investment Return: Illinois Police Officers' Pension Investment Fund - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Years Ended December 31, 2022 and 2021 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Years Ended December 31, 2022 and 2021 Actuarial Valuations. Actual Investment Return -Net Income Received from Investments as Reported Above as a Percentage of the Average of the Beginning and Ending Balances of the Fiscal Year Cash Investments, Excluding Net Investment Income, Gains, and Losses for the Fiscal Year Return Being calculated, as Reported in 5) Number of Active Members - Illinois Department of Insurance Annual Statement for December 31, 2022 - Schedule P. 6) (i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for December 31, 2022 - Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed. (ii) Disability Pension - Same as above. (iii) Survivors and Child Benefits - Same as above. Page 5 Page 26 of 39 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2022 INDEX OF ASSUMPTIONS 7) The funded ratio of the fund: Illinois Police Officers' Pension Investment Fund - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total Assets as Reported in the December 31, 2022 and 2021 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total Assets as Reported in the December 31, 2022 and 2021 Actuarial Valuations. 8) Unfunded Liability: Illinois Police Officers' Pension Investment Fund - Deferred Asset (Unfunded Accrued Liability) as Reported in the December 31, 2022 Actuarial Valuation. Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Foster & Foster in the December 31, 2022 Actuarial Valuation. Page 6 Page 27 of 39 September 28, 2023 Members of the Pension Board of Trustees Glen Ellyn Police Pension Fund 535 Duane Street Glen Ellyn, Illinois 60137 We are pleased to confirm our acceptance and understanding of the following services we are to provide for the Glen Ellyn Police Pension Fund for the years ended December 31, 2024, 2025, and 2026. We will compile from information you provide, monthly Treasurer's reports including annual and interim statements of net position - modified cash basis, statements of changes in net position - modified cash basis, and other supplementary information for the years ended December 31, 2024, 2025, and 2026 and perform a compilation engagement with respect to those financial statements. These financial statements will not include related notes to the financial statements as required for the financial statements prepared in accordance with the modified cash basis of accounting. In addition, the supplementary information accompanying the compiled financial statements will be prepared and presented with the financial statements. Such supplementary information is the responsibility of management and will be subject to our compilation engagement. We will not audit or review the supplementary information. We will not express an opinion, a conclusion or provide any assurance on such supplementary information. Our Responsibilities 1. We will provide you with the following bookkeeping services: post the cash receipt and cash disbursement journals; reconcile all bank accounts; account for all investment transactions; post the general ledger; issue vendor, contribution refund, and pension benefit payments; maintain vendor and benefit payment history; maintain records of contributions paid by members. 2. We will prepare financial statements in accordance with the modified cash basis of accounting based on information provided by you. 3. We will apply accounting and financial reporting expertise to assist you in the presentation of financial statements without undertaking to obtain or provide assurance that there are no material modifications that should be made to the financial statements in order for them to be in accordance with the modified cash basis of accounting. 4. We will prepare and file the annual tax forms 1099-R, 945, 1099-MISC and 1099-NEC and 1096 for the years ended December 31, 2024, 2025, and 2026. 5. We will perform pension benefit calculations and process benefit and vendor disbursements upon written authorization of management. A list of the scheduled pension benefit increases for each calendar year will be provided to the Pension Board for approval. All benefits are calculated in accordance with State Statutes and are based upon the pension benefit calculation schedules prepared for each beneficiary and approved by the Pension Board. We will disburse to the pensioners the gross pension benefit amounts indicated on the list provided for the applicable twelve-month benefit period. Any other amendments or changes to the gross benefits will require written authorization from the Pension Board. We will also perform requested non-actuarial calculations for all creditable service transfers and purchases allowable per State Statutes. Glen Ellyn Police Pension Fund 70 of 81 September 28, 2023 Page 1 of 5 Page 28 of 39 6. We will provide Professional Services Administration (PSA), which includes board meeting agenda preparation, scheduled board meeting attendance and preparation of minutes, maintenance of active member files, administration of annual elections, and preparation of annual affidavits to pensioners. 7. We will provide electronic data management by utilizing online portals. The portal will allow online access to an archive of current and historic Glen Ellyn Police Pension Fund financial documents and active member files. The documentation will be uploaded into the portal, filed appropriately and maintained by Lauterbach & Amen. It is the understanding of the parties that the portal is a supplement to, and not a replacement for, the Pension Board’s responsibility to maintain original paper and/or electronic public records of the Pension Fund. The Pension Fund may terminate the portal services with written notice to Lauterbach & Amen. Lauterbach & Amen agrees to maintain the Pension Board’s access for a maximum of 30 days after written notice is received, for the Pension Board to make sufficient electronic copies. 8. Lauterbach & Amen will maintain cyber and professional liability insurance and provide documentation of such coverage upon request. We will conduct our compilation engagement in accordance with Statements on Standards for Accounting and Review Services (SSARS) promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants (AICPA) and comply with applicable professional standards, including the AICPA’s Code of Professional Conduct and its ethical principles of integrity, objectivity, professional competence, and due care, when performing the bookkeeping services, preparing the financial statements, and performing the compilation engagement. We are not required to, and will not, verify the accuracy or completeness of the information you will provide to us for the engagement or otherwise gather evidence for the purpose of expressing an opinion or a conclusion. Accordingly, we will not express an opinion or a conclusion nor provide any assurance on the financial statements. Our engagement cannot be relied upon to identify or disclose any financial statement misstatements, including those caused by fraud or error, or to identify or disclose any wrongdoing within the entity or noncompliance with laws and regulations. However, we will inform the Pension Board of any material errors, and of any evidence or information that comes to our attention during the performance of our compilation procedures with respect to possible instances of fraud or misstatements unless they are clearly inconsequential. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities since performing those procedures or taking such action would impair our independence. Your Responsibilities The engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to prepare financial statements in accordance with the modified cash basis of accounting and assist you in the presentation of the financial statements in accordance with the modified cash basis of accounting. You have the following overall responsibilities that are fundamental to our undertaking the engagement in accordance with SSARS: 1. The selection of the modified cash basis of accounting as the financial reporting framework to be applied in the preparation of the financial statements. Glen Ellyn Police Pension Fund 71 of 81 September 28, 2023 Page 2 of 5 Page 29 of 39 2. The preparation and fair presentation of financial statements in accordance with the modified cash basis of accounting and the inclusion of a description of the modified cash basis of accounting. 3. The design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. 4. The prevention and detection of fraud. 5. To ensure that the Glen Ellyn Police Pension Fund complies with the laws and regulations applicable to its activities. 6. The accuracy and completeness of the records, documents, explanations, and other information, including significant judgments, you provide to us for the engagement. 7. To provide us with - a. access to all information of which you are aware is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters, b. additional information that we may request from you for the purpose of the compilation engagement, c. unrestricted access to persons within the entity of whom we determine it necessary to make inquiries. You are also responsible for all management decisions and responsibilities and for designating an individual, with suitable skills, knowledge, and experience to oversee our bookkeeping services and the preparation of your financial statements. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. Lauterbach & Amen, LLP does not assume any management responsibilities for the Pension Fund. We are not engaged to, and will not, perform an audit, the objective of which would be the expression of an opinion on the specified elements, accounts, or items. These services cannot be relied upon to detect errors, irregularities, or illegal acts that may exist. However, we will inform you of any such matters that may come to our attention. It is the understanding of the parties that the portals provided to or held by Lauterbach & Amen, LLP, is a supplement to, and not a replacement for, the original paper and electronic public records of the Pension Fund. Our Report As part of our engagement, we will issue a report that will state that we did not audit or review the financial statements and that, accordingly, we do not express an opinion, a conclusion, nor provide any assurance on them. There may be circumstances in which the report differs from the expected form and content. Our report will disclose that the Pension Fund management has elected to omit substantially all the disclosures ordinarily included in financial statements prepared in accordance with the modified cash basis of accounting. If the omitted disclosures were to be included in the financial statements, they might influence the user’s conclusions about the Pension Fund’s assets, liabilities, net position, additions and deductions. Accordingly, the financial statements will not be designed for those who are not informed about such matters. If for any reason, we are unable to complete the compilation of your financial statements, we will not issue a report on such statements as a result of this engagement. Glen Ellyn Police Pension Fund 72 of 81 September 28, 2023 Page 3 of 5 Page 30 of 39 Our report will disclose that the financial statements are prepared in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. You agree to include our accountant's compilation report in any document containing financial statements that indicates that we have performed a compilation engagement on such financial statements and, prior to inclusion of the report, to ask our permission to do so. The supplementary information accompanying the financial statements will be presented for purposes of additional analysis. Our report will not express an opinion, a conclusion, nor provide any assurance on such information. Other Relevant Information Costs for our services are as follows: Calendar Calendar Calendar Year Ended Year Ended Year Ended Services Provided 12/31/2024 12/31/2025 12/31/2026 $775 $800 $825 • Monthly Accounting Monthly Monthly Monthly $620 $640 $660 • Benefits Administration Monthly Monthly Monthly $815 $855 $900 • Professional Service Administration Monthly Monthly Monthly $515 $530 $545 • Municipal Compliance Report Annual Annual Annual $1,135 $1,170 $1,205 • Year End Auditor's Workpapers Annual Annual Annual $655 $675 $695 • Payroll & Vendor Tax Forms Annuall Annual Annual Annual Total Costs of Services $28,825 $29,915 $31,065 Monthly services will be billed on a monthly basis and annual services will be billed as completed. In connection with this agreement, the Glen Ellyn Police Pension Fund authorizes Lauterbach & Amen, LLP to automatically debit the Pension Fund’s disbursement account at BMO Bank N.A. upon completion of any past, present, or future services for the cost agreed upon in the respective engagement letter. Either the Pension Fund or Lauterbach & Amen, LLP may terminate this auto debit arrangement at any time by providing prior written notice to the other. Either party may terminate all or a portion of the services contemplated by this engagement at any time for any reason upon 30 days written notice to the other. Subcontracting is prohibited without the express written approval of the Pension Fund’s Board of Trustees. This agreement shall be governed by and construed in accordance with the laws of the State of Illinois. Glen Ellyn Police Pension Fund 73 of 81 September 28, 2023 Page 4 of 5 Page 31 of 39 We appreciate the opportunity to be of service to the Glen Ellyn Police Pension Fund and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you acknowledge and agree with the terms of our engagement as described in this letter, please indicate your acceptance of the above understanding by signing below and returning a signed copy to us. If the Pension Fund's needs change during the year, the nature of our services can be adjusted accordingly. Likewise, if you have special projects with which we can assist, please let us know. Cordially, Lauterbach & Amen, LLP Lauterbach & Amen, LLP RESPONSE: This letter correctly sets forth the understanding of the Glen Ellyn Police Pension Fund: Accepted by: _________________________________________________________________________ Title: _______________________________________________________________________________ Glen Ellyn Police Pension Fund 74 of 81 September 28, 2023 Page 5 of 5 Page 32 of 39  Volume 24, Issue 4, October 2023 Legal and Legislative Update Line of Duty Denied for Lack of In This Issue… Causation 1 Line of Duty Denied for Lack of Cox v. Bd. of Trustees of Kankakee Police Pension Causation Fund, 2023 IL App (3d) 220213-U 2 Duty Disabled Firefighter Denied The appellate court affirmed the Pension Board’s PSEBA Benefits decision, which found that while Officer Cox was 3 Bad Advice is Not Reasonable Cause for disabled, he had not proven his disability was Failing to File Timely Application causally connected to an act of duty. In its decision, the appellate court focused on the facts and findings 4 QILDRO Complications Lead to which supported the Board’s decision to deny a Lawsuit line-of-duty pension. 5 Attorney General Opines on Restrictions At the hearing, Officer Cox testified and his for Public Comment medical records were admitted, along with three 6 Suggested Agenda Items for January IME reports, several Functional Capacity Meeting Assessments (“FCAs”), and employment records which include a letter from his supervisor. 7 RDL News Officer Cox, whose testimony was found to be confusing and conflicting by the Pension Board, the incident, (3) only filed the required “Employee claimed that he had been injured while restraining Injury Report and Supervisor’s Initial Investigation a combative civilian in an emergency room at a Report” over 5 months after the incident, and (4) local hospital. Notwithstanding his claim he was injured and experienced immediate pain to his 6firstCsought le t treatment B for his shoulder only after he i gA t had been seen and treated for an off-duty knee shoulder, he (1) did not seek immediate treatment Fi f injury. E i at the same hospital, (2) made no mention of the injury in a detailed “Field Report” he wrote about © 2023 REIMER DOBROVOLNY & LABARDI PC 1 75 of 81 Page 33 of 39 Officer Cox also testified that while he did not fill Duty Disabled Firefighter Denied out the necessary paperwork at the time of the PSEBA Benefits injury in October of 2017, he did report the injury to his superior. The officer’s superior Thomsen v. Village of Bolingbrook, et al., 2023 IL unequivocally denied Office Cox had reported his App (3d) 220365 injury at the time. Specifically, his superior indicated not only did have no recollection of the Plaintiff, a firefighter, was awarded a line-of-duty conversation, but he “made it a practice to generate disability pension under Article 4 of the Pension an injury report regardless of whether the Officer Code for a lower back injury. Plaintiff sought to wished to have the injury checked at that time or receive health insurance benefits from the Village not.” Both the Pension Board and the Appellate of Bolingbrook (Village) pursuant to the Public Court placed significant weight on this statement, Safety Employee Benefits Act (PSEBA). as well as the absence of any corroborating record Plaintiff’s application was denied, so he appealed of an injury report filed at the time of the alleged that decision to the Circuit Court. However, the injury. Circuit Court rejected Plaintiff’s claim and entered judgment in favor of the Village. Finally, the Appellate Court also addressed both the IME and the FCA opinions. First, the Appellate On appeal, the Appellate Court initially noted the Court reviewed the FCA opinions generated existing Illinois Supreme Court precedent holding through the concurrent worker’s compensation that a “catastrophic injury” under PSEBA is claim. The Court noted that an initial FCA opinion “synonymous with an injury resulting in a line-of- stated that without corroboration, such as duty disability under section 4-110 of the [Pension] statements from other officers or reports from the Code.” (Krohe v. City of Bloomington, 204 Ill. 2d incident, the doctor would be unable to tie the 392 (2003). In this case, Plaintiff alleged he claimed injury to the claimed act of duty and slipped and fell on ice when stepping out of an instead would consider the disability a result of ambulance on an emergency call and twisted his degenerative change. This same doctor later back. Then, while attempting to start a chainsaw changed his opinion on causation without any back at the fire station, he noticed increasing pain explanation, which both the Pension Board and the in his lower back and elbow. Plaintiff argued his Appellate court found problematic. conduct was in response to what was reasonably believed to be an emergency. The Appellate Court also agreed with the Pension Board’s analysis of the IME reports. While the At the adjudication hearing, Plaintiff testified he IMEs asserted that the medical records were was dispatched to a motor vehicle accident with consistent with the history provided by Officer Cox injuries. Upon his arrival, Plaintiff’s battalion and that the on-duty incident served as the cause of chief, the Illinois State Police, and the Romeoville the officer’s injury to his shoulder, the Pension Fire Department were already at the scene. Board gave less weight to these opinions because Plaintiff pulled his ambulance behind the vehicle they relied on Officer Cox’s self-serving history.❖ involved in the accident to block traffic and secure the scene. Upon exiting the ambulance, he slipped on ice and felt a sharp pain in his back. After taking a couple of deep breaths, Plaintiff proceeded to perform his duties at the scene. Upon his return to the station, Plaintiff did not report the injury. Plaintiff and his partner were then assigned to check the chainsaws operability, during which he repeatedly pulled the chainsaw he was © 2023 REIMER DOBROVOLNY & LABARDI PC 2 76 of 81 Page 34 of 39 checking. It failed to start. After a couple more attempts, and right before the final pull which The Appellate Court applied the manifest-weight- started the chainsaw, the chainsaw kicked back and of-the-evidence standard of review when Plaintiff felt a burning in his left elbow. Plaintiff determining whether Plaintiff’s injury resulted was next asked to assist in checking the heavy from his response to an emergency. In this regard, extrication tools in the back of the fire engine. the pension board’s finding that plaintiff was When he reached over the back of the engine, his injured from slipping on the ice while responding back locked up on him. Plaintiff continued to to an emergency call did not prevent the Village check the tools. Later that afternoon, he reported from contesting whether he suffered an injury his injury to his supervising lieutenant. while responding to an emergency under the doctrine of collateral estoppel. According to the Before the end of his shift, Plaintiff completed a Appellate Court, the issue decided by the pension National Fire Incident Reporting System Report board, e.g. whether plaintiff was injured in the (NFIRS Report), regarding the dispatch to the performance of an act of duty, is not the same motor vehicle accident in which he noted “NO issued to be decided for PSEBA benefits, e.g. INJURIES. POLICE MATTER ONLY.” Also, the whether the injury occurred as a result of plaintiff’s “FIREHOUSE LOG” for Plaintiff’s shift included response to what is reasonably believed to be an a note from the lieutenant that Plaintiff advised he emergency. had back pain and did not request any medical attention. Further, an incident report titled “Illinois Accordingly, the hearing officer properly Form 45: Employer’s First Report of Injury,” considered whether there was a causal connection completed by the deputy chief stated the accident between plaintiff’s injury and the work-related occurred when “Repeatedly attempting to pull start incidents. In this regard, the Appellate Court found a chain saw from Engine” and the employee was the evidence of record supported the hearing harmed by the “Pulling motion of start chain.” officer’s determination that Plaintiff’s injury was Lastly, the “Supervisor’s Investigation Report,” the result of pull-starting the chainsaws and completed by the battalion chief, stated that starting checking the tools, and not the result of slipping on the chainsaw and moving hydraulic tools was the the ice while exiting the ambulance at the motor source of Plaintiff’s complaint. vehicle accident. “[A]pplying the manifest weight of the evidence standard of review, we cannot say At the adjudication hearing, Plaintiff testified the it was unreasonable for the hearing officer to slip on the ice was not included in the reports but conclude that plaintiff failed to establish that his insisted he reported the slip to his battalion chief injury occurred as a result of slipping on the ice.” and the injury was further aggravated throughout the day, but the battalion chief told him he “should The decision denying Plaintiff PSEBA stick with the chain saw.” Plaintiff’s medical benefits was affirmed.❖ records, which he signed, also contained the following description of the problem as “While at Bad Advice is not Reasonable Cause for work, I was doing weekly tool check and I Failing to File Timely Application repeatedly tried to start a chainsaw when I felt lower back pain shortly after.” The hearing officer Hannigan v. Retirement Board of County denied Plaintiff’s claim, finding he did not prove Employees’ and Officers’ Annuity and Benefit by a preponderance of the evidence that his injuries Fund of Cook County, 2023 IL App (1st) 220790-U occurred during the emergency call for the motor vehicle accident; rather, the evidence established Plaintiff was employed as a foreman in Cook the injuries resulted from the chainsaw and tool County’s facilities management department. He checks performed after the emergency call. sustained a work-related injury in May of 2010, resulting in a 16-month period of disability leave. © 2023 REIMER DOBROVOLNY & LABARDI PC 3 77 of 81 Page 35 of 39 During his period of disability leave, Plaintiff did application. It also rejected Plaintiff’s argument not file a disability application based on the advice that his due process rights were denied when the of his supervisors that he should wait until his pension board refused to entertain oral testimony or retirement to apply. Plaintiff received worker’s argument prior to making its decision. In this case, compensation benefits for his injury. Plaintiff submitted a detailed explanation of his reliance on his supervisors’ recommendations, Plaintiff wanted to receive creditable service for the which included statements from those supervisors period of disability leave, so he submitted an supporting Plaintiff’s claim. The Appellate Court application for disability benefits in April of 2016, found that because the facts were not in dispute, as his retirement neared, requesting to update his there was no need for an evidentiary hearing since retirement benefit to include the time he was on Plaintiff had meaningful opportunity to present his disability leave. Plaintiff’s application for duty claim. Plaintiff established no prejudice as result disability benefits was denied as untimely. of the pension board’s deciding the claim based on Notably, Plaintiff was awarded additional service those undisputed facts. time for an injury in 2003 because according to the Board’s rules the lack of knowledge of the time The decisions of the pension board and the Circuit limitations for filing an application does constitute Court were affirmed.❖ reasonable cause for failing to timely file an application. QILDRO Complications Lead to Lawsuit According to the pension board, the evidence Anderson v. Sullivan, Taylor & Gumina, P.C., 2023 showing Plaintiff’s supervisors were not aware that IL App (1st) 221796-U an application for disability benefits must be filed while the disability exists is not sufficient to A recent legal malpractice case serves as a good substantiate a cause for delay under the Pension reminder of the importance of proper QILDRO Code. On administrative review, the Circuit Court processing. Plaintiff in this case was the ex-spouse affirmed the board’s decision. of a firefighter. Her complaint alleges she entered into a marital settlement agreement (MSA) in On appeal, the Appellate Court reviewed the partial reliance on her attorney’s advice she would board's decision for clear error. According to be eligible to receive a death benefit upon the death Section 9-156 of the Pension Code, “benefits shall of her firefighter ex-husband. Nearly nine years not be allowed unless application therefor is made passed from the date the MSA was entered to the while the disability exists; except that this date the parties finally contacted the pension fund limitation does not apply if the board finds that to inquire about a QILDRO. Having received this there was reasonable cause for delay in filing the inquiry, the pension fund advised the parties Article application while the disability existed.” 4 of the Pension Code does not contemplate (Emphasis added.) The Appellate Court found payment of any “death benefit”. Only an eligible Plaintiff had adequate notice of his obligation to survivor would receive benefits upon the death of file a disability benefit application during the time the firefighter. Because the ex-spouse cannot of his disability, as the fund sent him the qualify as a “survivor” due to the divorce, the application and instructions in April of 2011, which Plaintiff in this case would generally be entitled to included the statement, “You must be disabled at nothing. This news prompted the instant lawsuit by the time of application.” Similarly, the disability the ex-spouse against her attorneys alleging they benefits handbook informs applicants they must be informed her she would be eligible to receive a disabled at the time of application. death benefit. The Appellate Court concluded the pension board One of the complicating factors here was the length did not make a mistake in concluding Plaintiff of time that passed between the entry of the MSA lacked reasonable cause for delay in filing his © 2023 REIMER DOBROVOLNY & LABARDI PC 4 78 of 81 Page 36 of 39 and tendering of a draft QILDRO to the pension Each situation is unique. Should your fund receive fund - nearly nine years. As such, this serves as a a QILDRO or have questions about administration, good reminder of the general guidelines pension please do not hesitate to contact your RDL boards should keep in mind when processing attorney.❖ QILDROs. Attorney General Opines on Restrictions A QILDRO is a creature of statue by which for Public Comment retirement pension benefits are divided during a divorce proceeding. While the QILDRO must meet PAC Opinion 23-013 certain requirements to be valid, the pension fund’s role is largely limited to review, processing, Public comment is a required part of every public approval, and implementation of the QILDRO. meeting. While it is rare a pension board meeting The first step in the process is for a QILDRO to be or hearing sees any public present, a working reviewed and approved by counsel for the pension knowledge of the requirement to allow public fund. Typically, the QILDRO is then entered in comment is useful to ensure compliance with the court by the divorcing parties. The pension fund Open Meetings Act (OMA). must receive a certified copy of the order along with a $50 processing fee before it can accept the In this matter before the Public Access Counselor QILDRO. If the member has service prior to July (PAC) at the Attorney General’s Office, a school 1, 1999, a consent to issuance signed by the board curtailed a member of the public’s comment member is also required. during the public comment portion of the meeting. The citizen made comments on elimination of class Usually, the QILDRO awards the “alternate payee” sections and then began to address an issue (ex-spouse) a percentage of the pension benefits of pertaining to the school district’s hiring policies. the member. In that case, a QILDRO “Calculation When she began that portion of her comments, the Order” must be entered by the Court and served on school board president interrupted her advising she the Pension Fund in order to make payment to the would not be allowed to make public comment on alternate payee. Of course, no payments are made “personnel matters”. In response to the PAC, the to the alternate payee until the member begins school board president advised the interrupted receiving retirement benefits. As a result, the portion of the citizen’s public comments pertained calculation order is frequently not entered until the to a pending DCFS investigation. member announces his intention to retire. In addressing the school board’s restriction on Pension Funds should be aware of certain deadlines public comment, the PAC advised generally the set by statute. For example, within 45 days of Open Meetings Act precludes a public body from receiving a QILDRO, the fund must provide the imposing restrictions on public comment not set parties specific information enumerated by the forth in the body’s rules and regulations. The PAC statute needed for the completion of the calculation also noted that, while the public body may enact order. In addition, for a member who is not retired rules for public comment under OMA, any at the time the QILDRO is entered, the Pension restrictions would still be subject to reasonable Fund must provide updated calculation order “time, place, and manner” restrictions that are information within 45 days of the member’s content neutral under the First Amendment to the subsequent retirement. Pension Funds should keep United States Constitution. this requirement in mind when approving retirement benefits and note whether each Having established a public body may impose retirement has a QILDRO attached to the member. some restrictions on public comment by rule, the Processing QILDROs is highly technical with PAC next examined the school board’s public many exceptions and fact specific determinations. comment rules. Recall, the response from the The above is only meant to serve as a general guide. © 2023 REIMER DOBROVOLNY & LABARDI PC 5 79 of 81 Page 37 of 39 school board suggested the citizen would not be during the public comments portion of the meeting, allowed to comment on “personnel matters” at a not to exceed three (3) minutes per person.” It is public meeting. The manual for public comment important to keep in mind this rule does not include published and adopted by the school board any limitation on the topic of comment. Based on contained numerous rules. However, no rule the PAC opinion above, it may be questionable suggesting a limitation on comment for personnel whether such a rule would survive review. Should matters was included. The school board did you have questions on how to handle public include a verbal admonishment used at the start of comment at pension board meetings, please reach its meeting advising public comment on matters out to your RDL attorney.❖ concerning personnel or students should be communicated to the board in private. This suggestion was included on an annotated agenda given only to board members and not made Suggested Agenda Items for available to the public. January (or 1st Quarter) Following analysis of the school board’s rules, the • Approval of annual COLA increases. PAC concluded it had not adopted any rule limiting • Semi-annual review of closed executive public comment on personnel matters. The session minutes to determine if needs to admonishment read prior to the meeting and remain confidential. included in the annotated board agenda not made • Determine need for election of available to the public was not part of the published beneficiary and active Trustees and/or rules. Pursuant to the OMA, any rule on public re-appointment of appointed Trustees – comment must be “established and recorded” by request for re-appointment of appointed the public body. Because the policy established Trustees. and recorded by the school board did not include a • Schedule annual examinations for limitation on public comment for personal matters, disabled firefighters/police officers the board improperly limited the citizen’s public under age 50. comment. • Annual verifications of eligibility for beneficiaries. Going further, the PAC suggested, even if the • Review/update contracts with vendors school board had adopted a policy limiting public (accountants, actuaries, attorneys, comment on personnel matters, that rule may fail to investment managers/advisors or pass muster under a First Amendment analysis as consultants). content-based restrictions on speech are subject to • Obtain predatory lending certification strict scrutiny. forms from Illinois regulated banks. • Determine status/need for extension of How does this apply to your pension board Letter of Credit or alternative meeting? Many of our clients have adopted our collateralization for Pension Fund RDL form rules and regulations. Included therein operating accounts. is a rule on public comment stating, “Any person shall be permitted to address the Pension Board © 2023 REIMER DOBROVOLNY & LABARDI PC 6 80 of 81 Page 38 of 39  REIMER DOBROVOLNY & LABARDI PC NEWS • October 3, 2023, RDL managing partner Rick Reimer will attend and present at the Metropolitan Alliance of Police training seminar in Bolingbrook. • October 4-6, 2023, RDL managing partner Rick Reimer will attend and present at the IPPFA MidAmerican Pension Conference in Lincolnshire. • November 3, 2023, RDL attorneys will attend and present at the IPFA Fall Pension Conference in Addison. • December 5, 2023, RDL managing partner Rick Reimer will present at the IPPFA certified trustee training in Naperville. Legal and Legislative Update Volume 24, Issue 4, October 2023 This publication constitutes advertising material. Information contained herein should not be considered legal advice. Legal and Legislative Update is published periodically. Questions may be directed to: REIMER DOBROVOLNY & LABARDI PC A Public Safety Law Firm 15 Spinning Wheel Road, Suite 310, Hinsdale, IL 60521 (630) 654-9547 Fax (630) 654-9676 www rdlaborlawpc.com Unauthorized reproduction prohibited. All rights reserved. © 2023 REIMER DOBROVOLNY & LABARDI PC 7 81 of 81 Page 39 of 39