Police Pension Board

Agenda Village of Glen Ellyn Police Pension Board Meeting Wednesday, July 17, 2024 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) April 17, 2024 Meeting 2) Semi-Annual Review of Closed Session Meeting Minutes 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 - Verus Advisory Inc. G. Communication and Reports 1) Affidavits of Continued Eligibility 2) Active Member File Maintenance H. Trustee Training Updates 1) Approval of Trustee Training Registration Fees & Reimbursable Expenses I. Approval of Membership/Withdrawals from Fund 1) Application for Membership – Matthew Goy and Caitlin Sciabica 2) Contribution Refund - Sam Carius J. Applications for Retirement/Disability Benefits 1) Approval of Surviving Spouse Benefits - Carol Ryan 2) Approval of Regular Retirement Benefits - Stephen Miko, Joseph Nemchock, and Janet Terranova K. Old Business 1) Portability Updates - Caitlin Tabor Village of Glen Ellyn Page 1 of 34 Police Pension Board Agenda July 17, 2024 Page 2 2) Benefit Discrepancy - Thomas Roman 3) IDOI Annual Statement 4) Review Updated Letter of Credit L. New Business 1) Review/Approve - Actuarial Valuation and Tax Levy Request 2) Review/Adopt - Municipal Compliance Report 3) Board Officer Elections - President, Vice President, Secretary, and Assistant Secretary 4) FOIA Officer and OMA Designee M. Attorney Report 1) Annual Independent Medical Examinations - Thomas Hartzell and Raymond Munch 2) Legal Updates N. Adjourn to Exec Session, if needed O. Adjourn Village of Glen Ellyn Page 2 of 34 Village of Glen Ellyn Minutes Village of Glen Ellyn Police Pension Board Meeting Regular Meeting April 17, 2024 4:30 PM Civic Center Room 306 Board or Police Pension Date: April 17, 2024 Commission: Meeting: Regular Called to 4:31 Order: p.m. Quorum: Yes Adjourned: 5:01 p.m. MEMBER ATTENDANCE: Jim Monson President Present John Adduci Trustee Present William Housey Jr. Trustee Absent James King Trustee Present Anthony Terranova Trustee Absent Also Present: Patrick Brankin Finance Director Richard Lamb Lauterbach & Amen Public: Michael Interlandi A. CALL TO ORDER The April 17, 2024 meeting of the Police Pension Board was called to order by President Monson at 4:31 pm at the Glen Ellyn Civic Center, Room 306. B. PUBLIC COMMENT – None C. APPROVAL OF MINUTES FROM JANUARY 17, 2024 MEETING MOTION TO APPROVE MINUTES FROM JANUARY 17, 2024 POLICE PENSION BOARD MEETING MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL Page 3 of 34  Police Pension 2 April 17, 2024 D. Accountant’s Report 1. Lauterbach and Amen deliver the monthly financial report, with Richard Lamb presenting the financial details for the month ending February 29, 2024 Statement of Net Position as of February 29, 2024: •Total Assets: $38,830,000 Total Liabilities: $2900.00 Total Net Position held in Trust: $38,828,000 •Total Contributions received: $433,000 Net Investment Income $673,000 •Total Additions: $1.100,000 •Total Expenses - $548,000 Total Increase in Net position: $559,000 Richard Lamb reviews the cash analysis, revenue, expense, contribution, payroll, quarterly disbursement, and transfer reports in detail. Trustee Adduci motions to accept the accountant's report as stated, seconded by Trustee King. The motion is unanimously approved. 2. Additional Bills & Cash Management Policy – The Police Pension reviews the cash management policy. Richard Lamb explains that the current policy sets a minimum of $15,000 and a maximum of $20,000. He confirms that there is no reason to make any changes, so no action is needed at this time. E. Investment Report 1. IPOPIF Versus Advisory Inc. – The Police Pension Board received and reviewed the performance of the IPOPIF report. F. Communication and Reports 1. Affidavits of Continued Eligibility – Richard Lamb confirms that there are two outstanding affidavits from Mary Roman and Dawn Allen. A second notice was sent, with a due date of April 4. If there is no response to the upcoming third request, we will issue a check that they must pick up at the office, where they will need to sign the affidavits to continue their direct deposits. 2. Statements of Economic Interest – Lamb provides an update, reminding everyone that the Statements of Economic Interest must be completed and submitted by May 1, 2024. He also notes that fines for failure to submit have increased. G. Trustee Training Updates 1. Approval of Trustee Training Registration Fees and Reimbursable Expenses – Lamb reports that no one has completed their training for 2024 yet. He mentions that there are upcoming training conferences. President Monson adds that he, Trustee Terranova, and Trustee King will be attending the training session in May. Lamb requests that once you receive your training certificates, please forward them. Page 4 of 34  Police Pension 3 April 17, 2024 H. Approval of Membership / Withdrawals from Fund - None I. APPLICATIONS FOR RETIREMENT / DISABILITY BENEFITS 1. Application for Membership – Nicholas Bradberry Trustee King motions to accept Nicolas Bradberry, hired February 9, 2024, into the Police Pension Fund; Trustee Adduci seconds the motion. 2. Contribution Fund – Ryan Radar: Richard Lamb states member Ryan Radar is due a contribution refund in the amount of $44,850.28 Trustee Adduci motions to approve contribution refund to Ryan Radar in the amount of $44,850.28; Trustee King seconds the motion. MOTION TO APPROVE CONTRIBUTION REFUND TO RYAN RADAR IN THE AMOUNT OF $44,850.28 MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL AYES - Adduci, Monson, King A J. OLD BUSINESS 1. Portability Updates – Caitlin Tabor - Richard Lamb provides an update stating calculations were sent to Caitlin Tabor but we haven’t received a response. Therefore there is no action required at this time. 2. Benefit Discrepancy – Thomas Roman - Benefit Discrepancy – President Monson provides an update, informing that a second notice was sent to both Thomas Roman and his ex-wife, but no response has been received. The next course of action is to schedule a hearing on this matter. Reimer’s office will notify the Romans of the hearing, during which the Police Pension will vote on the benefit discrepancy. Trustee Adduci motions to schedule a hearing regarding Thomas Roman’s benefit discrepancy; Trustee King seconds the motion. MOTION TO SCHEDULE A HEARING REGARDING THOMAS ROMAN’S BENEFIT DISCREPANCY MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL AYES - Adduci, Monson, King A K. NEW BUSINESS 1. IDOI Annual Statement – Richard Lamb states that the annualized pensionable salary request for all actionable members was sent out a few months ago. In about Page 5 of 34  Police Pension 4 April 17, 2024 a month, you will receive a draft of the IDOI. Please review it and inform us of any updates. Additionally, we will need a copy of the training certificates, meeting minutes, and the 2023 audit by the June 30 deadline. 2. Fiduciary Liability Insurance Renewal – Richard Lamb informs the Police Pension Board that the renewal payment has been completed. 3. Review Updated Letter of Credit – Richard Lamb will follow up on this. 4. BMO Bank Signature Cards and Resolution Update – Richard Lamb informs the Police Pension Board that signers on the BMO accounts will need to be updated. Finance Director Brankin states he and James Monson will be the designated signers. L. ATTORNEY’S REPORT – Reimer, Dobrovolny & LaBardi PC 1. Legal updates – none M. ADJOURNMENT – Trustee King motions and Trustee Adduci seconds to adjourn the meeting. The meeting was adjourned at 5:01 p.m. Submitted by Elisa Pollina, Recording Secretary Reviewed by Finance Director Brankin Page 6 of 34  Glen Ellyn Police Pension Board Meeting 7/17/2024 4:30 PM 535 Duane Street Department: Finance Glen Ellyn, IL 60137 Department Head: Category: Report Prepared By: AGENDA ITEM (ID # 2024-464) DOC ID: 2024-464 IPOPIF - Verus Advisory Inc. Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: 1. IPOPIF May 2024 2. Verus Statement May 2024 Page 7 of 34 GLEN ELLYN POLICE PENSION FUND Month Ended: May 31, 2024 Market Value Summary: Current Period Year to Date Beginning Balance $38,565,598.20 $38,214,782.11 Contributions $30,200.00 $138,500.00 Withdrawals ($120,073.37) ($419,467.65) Transfers In/Out $0.00 $0.00 Income $25,591.71 $93,659.42 Administrative Expense ($441.00) ($2,706.07) Investment Expense ($657.81) ($2,789.33) Investment Manager Fees ($863.20) ($2,162.05) IFA Loan Repayment $0.00 $0.00 Adjustment $0.00 $0.00 Realized Gain/Loss $15,763.95 $522,712.04 Unrealized Gain/Loss $1,048,052.26 $1,020,642.27 Ending Balance $39,563,170.74 $39,563,170.74 Performance Summary: Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: 2.82% 0.22% 4.28% 14.15% N/A N/A N/A 3.68% 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 8 of 34 GLEN ELLYN POLICE PENSION FUND Fund Name: IPOPIF Pool Month Ended: May 31, 2024 Market Value Summary: Unit Value Summary: Current Period Year to Date Current Period Year to Date Beginning Balance $38,565,598.20 $38,214,782.11 Beginning Units 3,531,456.546 3,549,038.901 Contributions $30,200.00 $138,500.00 Unit Purchases from Additions 2,702.194 12,572.867 Withdrawals ($120,073.37) ($419,467.65) Unit Sales from Withdrawals (10,689.840) (38,142.867) Transfers In/Out $0.00 $0.00 Ending Units 3,523,468.901 3,523,468.901 Income $25,591.71 $93,659.42 Administrative Expense ($441.00) ($2,706.07) Period Beginning Net Asset Value per Unit $10.920593 $10.767643 Investment Expense ($657.81) ($2,789.33) Period Ending Net Asset Value per Unit $11.228472 $11.228472 Investment Manager Fees ($863.20) ($2,162.05) IFA Loan Repayment $0.00 $0.00 Adjustment $0.00 $0.00 Realized Gain/Loss $15,763.95 $522,712.04 Unrealized Gain/Loss $1,048,052.26 $1,020,642.27 Ending Balance $39,563,170.74 $39,563,170.74 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: 2.82% 0.22% 4.28% 14.15% N/A N/A N/A 4.01% 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 9 of 34 Statement of Transaction Detail for the Month Ending 05/31/2024 GLEN ELLYN POLICE PENSION FUND Trade Date Settle Date Description Amount Unit Value Units IPOPIF Pool 05/08/2024 05/09/2024 Redemptions (56,437.37) 11.128812 (5,071.2843) 05/20/2024 05/21/2024 Redemptions (63,636.00) 11.326043 (5,618.5554) 05/30/2024 05/31/2024 Contribution 30,200.00 11.176104 2,702.1939 Page 3 of 3 Page 10 of 34  May 2024 Statement Supplement Asset Flows Period New Asset Transfers Cash Contributions Cash Withdrawals May 2024 Zero $42 million $50 million CY 2024 Zero $216 million $231 million Expenses Paid Administrative Investment Investment Period Expenses Expenses Manager Fees May 2024 $115,863.01 $172,826.40 $226,788.00 CY 2024 $708,991.98 $730,947.79 $566,677.79 • Expenses are paid from the IPOPIF Pool and allocated proportionately by member value. • Investment expenses exclude investment manager fees. Investment Pool Details Date Units Value Unit Price 4/30/24 927,817,568.8093 10,132,317,668.76 10.920593 5/31/24 927,201,825.2002 10,411,059,430.00 11.228472 A spreadsheet with complete unit and expense detail history is linked on the Article 3 Fund Reports page as -IPOPIF Unit and Expense information 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: Link to Statement Overview • Monthly financial reports: https://www.ipopif.org/reports/monthly-financial-reports/ • Monthly and quarterly investment reports: https://www.ipopif.org/reports/investment- reports/ • IPOPIF Board Meeting Calendar: https://www.ipopif.org/meetings/calendar/ Illinois Police Officers’ Pension Investment Fund 309-280-6464 456 Fulton Street, Suite 402 info@ipopif.org Peoria, Illinois 61602 Page 11 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: May 31, 2024 Market % of Target Since Inception 1 Mo Fiscal YTD YTD 1 Yr 2023 Value Portfolio (%) Inception Date Total Fund with Member and Transition Accounts 10,419,890,794 100.0 100.0 2.9 10.8 4.4 14.4 13.7 3.8 03/01/22 Policy Index 2.9 11.0 4.5 15.0 14.2 3.8 Policy Index- Broad Based 3.2 11.6 4.8 16.2 16.8 3.3 IPOPIF Investment Portfolio 10,419,890,794 100.0 100.0 2.9 10.8 4.4 14.4 13.7 3.6 04/01/22 Policy Index 2.9 11.0 4.5 15.0 14.2 3.7 Policy Index- Broad Based 3.2 11.6 4.8 16.2 16.8 3.1 Growth 6,076,882,723 58.3 58.0 4.0 14.7 7.3 21.1 19.4 5.2 04/01/22 Growth Benchmark 4.0 14.9 7.3 21.3 19.5 5.1 RhumbLine Russell 1000 Index 2,416,838,486 23.2 23.0 4.7 19.8 10.6 28.0 26.5 12.4 03/15/22 Russell 1000 Index 4.7 19.9 10.6 28.0 26.5 12.5 RhumbLine Russell 2000 Index 527,620,976 5.1 5.0 5.0 11.0 2.7 20.1 16.8 4.2 03/15/22 Russell 2000 Index 5.0 11.1 2.7 20.1 16.9 4.5 SSgA Non-US Developed Index 1,988,218,073 19.1 19.0 3.9 13.5 7.0 18.9 18.3 9.2 03/10/22 MSCI World ex U.S. (Net) 3.8 13.1 6.7 18.5 17.9 8.7 International Developed Small Cap Equity 519,536,177 5.0 5.0 3.9 10.6 3.5 13.9 12.9 0.2 04/01/22 MSCI World ex U.S. Small Cap Index (Net) 4.4 11.0 4.0 14.4 12.6 0.1 Acadian ACWI ex US Small-Cap Fund 266,138,559 2.6 2.5 3.7 - - - - 7.7 01/30/24 MSCI AC World ex USA Small Cap (Net) 3.2 - - - - 6.4 WCM International Small Cap Growth Fund 124,013,662 1.2 1.3 4.4 - - - - -0.6 03/01/24 MSCI AC World ex USA Small Growth Index (Net) 3.5 - - - - 3.4 LSV International Small Cap Value Equity Fund 129,383,956 1.2 1.3 3.8 - - - - 5.4 03/01/24 S&P Developed Ex-U.S. SmallCap (Net) 4.8 - - - - 6.3 Emerging Market Equities 624,669,011 6.0 6.0 1.2 7.8 3.3 12.1 9.7 -0.8 04/01/22 MSCI Emerging Markets (Net) 0.6 8.3 3.4 12.4 9.8 -1.1 SSgA Emerging Markets Equity Index 425,554,377 4.1 4.0 1.5 8.1 3.6 12.4 9.6 0.3 03/10/22 MSCI Emerging Markets (Net) 0.6 8.3 3.4 12.4 9.8 1.0 SSgA Emerging Markets ex China Equity 199,114,633 1.9 2.0 -0.2 - - - - -0.2 05/01/24 MSCI Emerging Markets ex China (Net) -0.1 - - - - -0.1 Income 1,647,479,038 15.8 16.0 1.3 9.5 1.9 11.6 12.8 2.1 04/01/22 Income Benchmark 1.3 9.4 1.9 11.4 12.6 3.2 SSgA High Yield Corporate Credit 720,371,813 6.9 7.0 1.1 9.6 1.7 11.5 13.8 3.3 03/18/22 Spliced SSgA U.S. High Yield Index 1.1 9.4 1.6 11.2 13.5 3.3 SSgA EMD Hard Index Fund 621,290,730 6.0 6.0 1.8 8.7 1.7 11.0 11.2 1.9 03/14/22 Spliced SSgA EMD Hard Index 1.8 8.6 1.7 11.0 11.1 2.0 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. 1 Page 12 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: May 31, 2024 Market % of Target Since Inception 1 Mo Fiscal YTD YTD 1 Yr 2023 Value Portfolio (%) Inception Date Bank Loans 305,816,495 2.9 3.0 0.9 - - - - 2.5 03/01/24 Credit Suisse Leveraged Loan Index 0.9 - - - - 2.4 Ares Institutional Loan Fund 102,101,814 1.0 1.0 1.1 - - - - 2.6 03/01/24 Credit Suisse Leveraged Loan Index 0.9 - - - - 2.4 Aristotle Institutional Loan Fund 203,714,681 2.0 2.0 0.8 - - - - 2.4 03/01/24 Credit Suisse Leveraged Loan Index 0.9 - - - - 2.4 Real Assets 573,281,809 5.5 6.0 3.4 0.7 -2.9 3.4 5.6 -3.8 04/01/22 Real Assets Benchmark 3.1 0.0 -2.8 2.4 4.7 -7.0 SSgA REITs Index 414,102,301 4.0 4.0 4.8 4.3 -3.2 9.6 13.9 -5.1 03/16/22 Dow Jones U.S. Select REIT Total Return Index 4.8 4.3 -3.2 9.6 14.0 -5.0 Principal USPA 159,179,508 1.5 2.0 -0.2 -8.0 -2.0 -9.7 -10.7 -7.3 04/06/22 Risk Mitigation 2,122,145,840 20.4 20.0 0.9 4.0 0.7 3.7 5.0 1.4 04/01/22 Risk Mitigation Benchmark 0.9 4.1 0.7 3.7 4.9 1.3 SSgA US Treasury Index 201,486,817 1.9 2.0 1.5 - - - - 1.5 05/01/24 Blmbg. U.S. Treasury Index 1.5 - - - - 1.5 SSgA Core Fixed Income Index 337,436,156 3.2 3.0 1.7 1.7 -1.5 1.3 5.6 -2.1 03/17/22 Blmbg. U.S. Aggregate Index 1.7 1.7 -1.6 1.3 5.5 -2.1 SSgA Short-Term Gov't/Credit Index 1,134,517,226 10.9 11.0 0.7 4.3 0.8 3.8 4.6 1.7 03/17/22 Bloomberg U.S. Gov/Credit 1-3 Year Index 0.7 4.3 0.8 3.9 4.6 1.6 SSgA US TIPS Index 284,383,370 2.7 3.0 0.9 4.7 1.6 4.5 4.6 0.9 03/17/22 Blmbg. U.S. TIPS 0-5 Year 0.9 4.7 1.6 4.5 4.6 1.1 Cash 164,322,271 1.6 1.0 0.4 4.8 2.1 5.4 5.0 3.6 03/22/22 90 Day U.S. Treasury Bill 0.5 5.0 2.2 5.5 5.0 4.0 IPOPIF Pool Fixed Income Transition 101,384 0.0 - Member Accounts - 0.0 - 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. 2 Page 13 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: May 31, 2024 Performance Return Calculations Performance is calculated using Time Weighted Rates of Return (TWRR) methodologies. Monthly returns are geometrically linked and annualized for periods longer than one year. Data Source Verus is an independent third party consulting firm and calculates returns from best source book of record data. Returns calculated by Verus may deviate from those shown by the manager in part, but not limited to, differences in prices and market values reported by the custodian and manager, as well as significant cash flows into or out of an account. It is the responsibility of the manager and custodian to provide insight into the pricing methodologies and any difference in valuation. Manager Line Up Manager Inception Date Data Source Manager Inception Date Data Source RhumbLine Russell 1000 Index Fund 3/15/2022 State Street SSgA EMD Hard Index Fund 3/14/2022 State Street RhumbLine Russell 2000 Index Fund 3/15/2022 State Street Ares Institutional Loan Fund 3/1/2024 Ares SSgA Non-US Developed Index Fund 3/10/2022 State Street Aristotle Institutional Loan Fund 3/1/2024 Aristotle SSgA Non-US Developed SC Index Fund 3/10/2022 State Street Principal USPA 4/6/2022 State Street Acadian ACWI ex US Small-Cap Fund 1/30/2024 State Street SSgA REITs Index Fund 3/10/2022 State Street WCM International Small Cap Growth Fund 3/1/2024 WCM SSgA US Treasury Index Fund 5/1/2024 State Street LSV International Small Cap Value Equity Fund 3/1/2024 LSV SSgA Core Fixed Income Index Fund 3/17/2022 State Street SSgA Emerging Markets Equity Index Fund 3/1/2022 State Street SSgA Short-Term Gov't/Credit Index Fund 3/17/2022 State Street SSGA Emerging Markets ex China Equity Index Fund 5/1/2024 State Street SSgA US TIPS Index Fund 3/17/2022 State Street SSgA High Yield Corporate Credit 3/18/2022 State Street Cash 3/22/2022 State Street Custom Benchmark Composition Benchmark Time period Composition Policy Index -Broad Benchmark 4/1/2022 - Present 70% MSCI ACWI IMI (Net) and 30% Bloomberg Global Multiverse. Spliced SSgA EMD Hard Benchmark 7/1/2023 - Present 100% JPM EMBI Global Diversified Index Spliced SSgA EMD Hard Benchmark 3/14/2022 - 6/30/2022 100% JPM EMBI Global Core Index Spliced SSgA U.S. High Yield Index 12/1/2022 - Present 100% ICE BofA US High yield Master II Constrained Spliced SSgA U.S. High Yield Index 4/1/2022 - 11/30/2022 100% Bloomberg U.S. High Yield Very Liquid Index 3 Page 14 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: May 31, 2024 Policy Index Composition Policy Risk As of 5/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 4/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23.0% 39.7% Russell 2000 5% 8.6% Russell 2000 5.0% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19.0% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5.0% 8.6% MSCI Emerging Markets 5% 8.6% MSCI Emerging Markets 6.0% 10.3% MSCI Emerging Markets ex China 1% 1.7% Bloomberg US Corporate High Yield Index 7.0% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6.0% 37.5% JPM EMBI Global Diversified Index 6% 37.5% Credit Suisse Leveraged Loan Index 3.0% 18.8% Credit Suisse Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2.0% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4.0% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg US Treasury Index 1% 5.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 12% 60.0% 90 Day US Treasury Bill Index 1% 5.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 3/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 5/1/2023 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 18% 31.0% MSCI World ex U.S. 18% 31.0% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 7% 12.1% MSCI Emerging Markets 7% 12.1% Bloomberg US Corporate High Yield Index 8.5% 53.1% Bloomberg US Corporate High Yield Index 10% 69.0% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 41.4% Credit Suisse Leveraged Loan Index 1.5% 9.4% NFI-ODCE Equal-Weighted Index 2% 57.1% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 114.3% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 13.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 13% 56.5% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg US TIPS 0-5 Year 3% 13.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 4.3% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 1/1/2023 Policy Index Growth Income Real Assets Risk Mitigation As of 3/31/2022 Index Growth Income Real Assets Mitigation Russell 1000 18% 36.0% Russell 3000 23% 46.0% Russell 2000 5% 10.0% MSCI ACWI ex USA IMI 20% 40.0% MSCI World ex U.S. 15% 30.0% MSCI Emerging Markets IMI 7% 14.0% MSCI World ex U.S. Small Cap 5% 10.0% Bloomberg US Corporate High Yield Index 10% 62.5% MSCI Emerging Markets 7% 14.0% 50% JPM EMBI GD/50% JPM GBI EM GD 6% 37.5% Bloomberg US Corporate High Yield Index 10% 62.5% NCREIF Property Index 2% 12.5% JPM EMBI Global Diversified Index 6% 37.5% Dow Jones US Select REIT Index 4% 25.0% NFI-ODCE Equal-Weighted Index 2% 33.3% Bloomberg US Aggregate Index 7% 25.0% Dow Jones US Select REIT Index 4% 66.7% Bloomberg 1-3 Year Gov/Credit Index 15% 53.6% Bloomberg US Aggregate Index 7% 25.0% Bloomberg US TIPS 0-5 Year 3% 10.7% Bloomberg 1-3 Year Gov/Credit Index 15% 53.6% 90 Day US Treasury Bill Index 3% 10.7% Bloomberg US TIPS 0-5 Year 3% 10.7% 90 Day US Treasury Bill Index 3% 10.7% 3 Page 15 of 34  2024 IPPFA Trustee Training Opportunities IPPFA ONLINE SEMINAR COURSE WHEN: Ongoing • Online 8 hr. seminar (Recorded from the 2023 MidAmerican Pension Conference) WHERE: IPPFA Website: www.ippfa.org/education/online-classes/ COST: IPPFA MEMBER: $285.00/seminar IPPFA NON-MEMBER: $570.00/seminar This online seminar agenda includes: • School's in Session - How to Ace your Fund Administration • Retirement Healthcare Funding • Private vs. Public Pensions • Pension Funding Policy • Legal Updates and Recent Court Cases • Ask Your Attorney • Fiduciary Liability Insurance vs. Directors and Officers Insurance • Benefit Enhancements to Attract and Retain Public Safety Officers • Consolidation Update • The Wonderfully Weird World of Administrative Review - this online seminar satisfies 8 hours of the required continuing pension trustee training 45 of 79 Page 16 of 34  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: April 2, 2024 - April 3, 2024 WHERE: NIU Outreach Campus 1120 E. Diehl Rd., Room 266 Naperville, IL 60563 COST: IPPFA MEMBER: $500.00 IPPFA NON-MEMBER: $1,000.00 *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. 46 of 79 Page 17 of 34 47 of 79 Page 18 of 34 48 of 79 Page 19 of 34  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~ 49 of 79 Page 20 of 34  2024 IPFA FALL PENSION SEMINAR Friday November 1, 2024 Gold 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: $ 210.00 Non - Members: $ 260.00 Walk-In Registration: $ 290.00 Avoid the walk-in surcharge – register on or before Monday, October 28, 2024 Registration opens at 07:00, event begins at 08:00, & ends at 16:00 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 October 28, 2024 to qualify for lower rates. Reservations received after the above date will be charged walk-in registration fee. Requests for refunds must be received on or before Monday, October 28, 2024 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 trustees. This seminar provides up to 8 hours of credits. For IPFA Office Use: Date: ___________ Check #: ___________ Amount: _____________ Payer: ________________________________________ ___________________________________________________________________________ 50 of 79 Page 21 of 34  Glen Ellyn Police Pension Meeting 7/17/2024 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: 2024-468 # 2024-468) Application for Membership – Matthew Goy and Caitlin Sciabica Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: Page 22 of 34  Glen Ellyn Police Pension Meeting 7/17/2024 4:30 PM Board Department: Finance 535 Duane Street Department Head: Patrick Brankin Glen Ellyn, IL 60137 Category: Other Prepared By: Patrick Brankin AGENDA ITEM (ID # 2024- DOC ID: 2024-469 469) Contribution Refund - Sam Carius Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: Page 23 of 34  Glen Ellyn Police Pension Board Meeting 7/17/2024 4:30 PM 535 Duane Street Department: Finance Glen Ellyn, IL 60137 Department Head: Category: Personnel Prepared By: AGENDA ITEM (ID # 2024-470) DOC ID: 2024-470 Approval of Surviving Spouse Benefits - Carol Ryan Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: Page 24 of 34  Glen Ellyn Police Pension Board Meeting 7/17/2024 4:30 PM 535 Duane Street Department: Finance Glen Ellyn, IL 60137 Department Head: Category: Personnel Prepared By: AGENDA ITEM (ID # 2024-471) DOC ID: 2024-471 Approval of Regular Retirement Benefits - Stephen Miko, Joseph Nemchock, and Janet Terranova Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: Page 25 of 34  Volume 25, Issue 3, July 2024 Legal and Legislative Update Firefighter’s Felony Conviction Results In This Issue… in Pension Forfeiture 1 Firefighter’s Felony Conviction Trapp v. City of Burbank Firefighters' Pension Results in Pension Forfeiture Fund, 2024 IL App (1st) 231311 2 Firefighter Gets PSEBA Benefits Former firefighter sought judicial review of Retroactive to Initial Denial of decision by the pension board, which terminated Disability his pension benefits after he pleaded guilty in federal court to a work-related felony. The Plaintiff 3 Employment As Sheriff’s Deputy in claimed the pension board did not have jurisdiction Florida Results in Disability to revoke or rescind his retirement pension awarded Termination almost five years earlier. 5 Preexisting Mental Health Issues Trapp, a 28-year veteran of the Burbank Fire Preclude Disability Benefits Department, initiated a sexual relationship with a teen fire cadet. The Fire Chief, who was also a 6 Firefighter Entitled to PSEBA trustee on the pension board, immediately Benefits Due to Disability from suspended Trapp once informed of Trapp’s wholly Multiple Events inappropriate relationship. Trapp filed retirement pension benefits within the week. 8 Loss of Pension Results in Loss of While the underlying felony was being investigated Monthly QILDRO for Ex-Spouse by law enforcement, Trapp was awarded his regular retirement benefit. Trapp was charged federally for 9 Amendment to Municipal Code the felony interstate possession or receipt of child Protects Disabled Police Officers pornography in 2019 and pled guilty to the felony in September of 2020, about three years after 9 Suggested Agenda Items for October retirement. © 2024 REIMER DOBROVOLNY & LABARDI PC 1 71 of 79 9 RDL News Page 26 of 34 Following a hearing, the pension board determined longer had the power to pay that money pursuant to Trapp’s pension benefits should be rescinded or Section 4-138. revoked because his felony conviction was based This strong language from the Appellate Court on conduct “related to, arose out of, or was in should be recognized as establishing a duty on the connection” with his employment as a firefighter pension board to act once a member is convicted of pursuant to Section 4-138 of the Pension Code. a work-related felony. Please contact RDL Plaintiff claimed two errors. First, he asserted the immediately if you have a possible felony pension board should have “appealed” its original forfeiture issue.❖ decision awarding pension benefits. As the pension board did not act within 35 days of the original Firefighter Gets PSEBA Benefits grant in 2017, Plaintiff claimed no “appeal” was Retroactive to Initial Denial of Disability filed and jurisdiction was therefore lost. The Appellate Court quickly dispatched this argument, Ceyer v. City of Berwyn, 2024 IL App (1st) 231538 stating the felony forfeiture of benefits is an Benno Ceyer was a firefighter who injured his knee entirely new and distinct matter from any prior during an emergency fire alarm in 2005. In 2008, award of retirement benefits. Plaintiff then he applied to the pension board for a line of duty asserted his second claim, insisting the pension disability. The pension board denied his board lost jurisdiction to address the later impact of application for line of duty disability benefits. the felony conviction because it did not “retain Finding the firefighter did not receive a fair and jurisdiction” when it first issued a decision and impartial hearing, the Circuit Court of Cook order granting Trapp his pension in 2017, knowing County vacated the pension board’s decision and an investigation into Trapp’s abhorrent behavior remanded the case to the pension board for a new was pending. The Appellate Court found this hearing. In 2015, the pension board awarded Ceyer argument meritless, requiring an absurd a line of duty disability retroactive to his removal construction of the law. The Court indicated that from payroll in 2008. under Plaintiff’s theory, every grant of benefits From the time of initial pension board denial in would then require “retention of jurisdiction,” an 2008, Ceyer had paid his own health insurance absurdity that was never intended by the premiums. He filed the instant lawsuit seeking legislature. reimbursement and continued payment for those The Appellate Court’s analysis focused on Section premiums pursuant to the PSEBA. 4-138 of the Code, which provides, “None of the The Appellate Court was presented with several benefits provided under this Article shall be paid to issues. First, whether the claim for PSEBA benefits any person who is convicted of any felony relating was timely? Second, when entitlement to PSEBA to or arising out of or in connection with service as benefits commences? And finally, whether Ceyer’s a firefighter.” The Appellate Court then re- PSEBA benefits should have been reduced due to affirmed that, “it has long been held that a pension access to healthcare benefits from other sources? board “ ‘has no powers beyond those given to it in the act creating it, and has neither the right nor the Reasoning the initial denial of Ceyer’s disability in power to pay moneys to anyone not within the 2008 commenced the time within which to apply terms of the act fixing the conditions under which for PSEBA, the City first claimed Ceyer failed to a pension is payable.’ ” The Appellate Court then bring his claim for PSEBA benefits within the 5- asserted that because plaintiff was plainly ineligible year statute of limitations. The Appellate Court for a pension benefit under the terms of Section 4- rejected this claim finding the claim for PSEBA was not ripe until the pension board awarded line 138, the board was therefore required by statute to of duty disability benefits in 2015. Under the City’s divest plaintiff of his pension award because it no reasoning, the time for application for PSEBA © 2024 REIMER DOBROVOLNY & LABARDI PC 2 72 of 79 Page 27 of 34 would have expired prior to the pension board eligible for health insurance benefits from his decision to award disability benefits. Because company inasmuch as they did not provide a group Ceyer filed his claim within 5 years of the date of health care policy from which Ceyer opted out. As the pension board award, his claim for PSEBA a result, Ceyer was entitled to the full amount of benefits was timely. PSEBA benefits from the City from the date his initial disability was denied in 2008 through the Next, the Court grappled with the issue of when present. Ceyer became eligible for benefits. The City argued he did not become eligible until the pension Recall PSEBA benefits are administered through board awarded disability in 2015. Conversely, the the employer and not the pension fund. However, trial court had found him eligible as of the initial as was seen in this case, there is a significant date the pension board denied benefits in 2008. interplay between the resolution of a disability The PSEBA statute does not specify when a claim before the pension board and eligibility for firefighter’s entitlement to PSEBA benefits begins. PSEBA from the employer.❖ Factually, Ceyer lost his eligibility for health insurance when he came off the City’s payroll in Employment As Sheriff’s Deputy in 2008. The Appellate Court agreed with the trial Florida Results in Disability Termination court that Ceyer was entitled to PSEBA as of the date the pension board initially denied his Marcano v. Ret. Bd. of Trustees of City of Harvey application in 2008. In so holding, the Court made Police Pension Bd., 2024 IL App (1st) 230579-U clear it was limiting this holding to the specific facts of this case. The Court was particularly Marcano was a Harvey Police Department patrol swayed by the trial court finding in the pension case officer who was shot while conducting a solo Terry that Ceyer’s initial hearing was less than neutral. It stop. He sustained permanent hearing loss from the noted that, had the initial pension board hearing shot but returned to duty. Shortly after, Marcano been non-biased, Ceyer would have been awarded applied for and was awarded duty disability a disability in 2008. Because it was not, he was benefits. Marcano continued to work almost forced to engage in several years of protracted continuously in emergency response professions in litigation to secure his benefit. The Appellate Court Illinois or Florida and completed his bachelor’s and found that, under these facts where Ceyer was not master’s degrees. provided a fair initial hearing, it is in keeping with the legislative intent of PSEBA to “continue” After completing his education, Marcano applied to employer-sponsored health insurance as of the date work for the Hillsborough County Sheriff’s Office the pension board initially denied disability in in Florida. In his application, Marcano attributed 2008. his departure from the Harvey Police Department to his hearing impairment and inability to tolerate Finally, the Appellate Court addressed the issue of the cold weather. The Sheriff’s Office hired whether Ceyer had access to health insurance Marcano, where he performed full, unrestricted benefits “payable from any other source”. Under duties despite his hearing loss. During his tenure at the PSEBA statute, health insurance payable from the Sheriff’s Office, Marcano sustained numerous any other source shall operate to reduce the benefit on-the-job injuries but recovered from them and payable under PSEBA. Typically, this is seen in the continued to work. context of a disabled firefighter becoming eligible for Medicare. In this case however, Ceyer was the Around 2016, the Pension Board retained Dr. owner of a business who provided health insurance Daniel G. Samo, to review Marcano’s medical to two employees. Ceyer never received health records. Dr. Samo opined Marcano’s medical insurance benefits from his business. The records did not indicate he suffered from hearing Appellate Court held that “payable from any other loss, cold sensitivity, or other issues relating to his source” does not require an individual to buy their 1998 injury. Dr. Samo further opined Marcano was own health insurance. Rather, Ceyer was not © 2024 REIMER DOBROVOLNY & LABARDI PC 3 73 of 79 Page 28 of 34 not disabled and could return to duty. Dr. Samo administrative review claim. The Circuit Court relied on the fact Marcano worked at the Sheriff’s affirmed the pension board’s decision to terminate Office for 8 years without restrictions. At initial disability benefits. hearing before the pension board, Marcano testified he worked at the Sheriff’s Office. It was agreed the On appeal, the Estate argued the Pension Board’s board would acquire Marcano’s employment findings were against the manifest weight of the records from the Sheriff’s Office and continue the evidence. In upholding the decision of the pension hearing. The pension board also passed a motion to board, the Appellate Court reasoned, “although it is suspend Marcano’s disability payments on an undisputed that Marcano’s on-duty injury in 1998 interim basis, subject to restoration if the pension caused him to suffer a permanent, partial loss of board concluded Marcano remained disabled. hearing in his right ear, the board’s finding that Neither Marcano nor his counsel objected. Marcano had learned to accommodate that loss and could work competently as a full-time, unrestricted The Pension Board obtained Marcano’s entire file police officer, was overwhelmingly supported by from the Sheriff’s Office and forwarded it to Dr. the manifest weight of the evidence.” The Samo to review. Dr. Samo opined he found nothing Appellate Court reasoned Marcano’s employment in Marcano’s records that precluded him from history following his disability proved his returning to full, unrestricted duty at the Harvey disability did not prevent him from performing full, Police Department. Dr. Samo noted Marcano did unrestricted duties at the Harvey Police not have any issues at the Sheriff’s Office because Department. The Appellate Court further reasoned of his hearing loss and opined Marcano is not the Harvey Police Department was willing to disabled from full, unrestricted police duties accommodate Marcano’s disability. because of hearing loss. Second, the Appellate Court reasoned there was no In response to Dr. Samo’s report, Marcano obtained evidence to suggest Marcano suffered from a cold contrary opinions from four physicians. Marcano intolerance, and it is unlikely the Pension Board also submitted a one-page discussion from Dr. awarded Marcano a disability based on cold Hilary A. Marusak, Ph.D., concerning “Cold intolerance in 1998. The Estate also argued the allodynia and hyperalgesia (i.e., cold intolerance).” Pension Board violated Marcano’s due process Dr. Marusak neither discussed Marcano’s injuries rights when it deprived him of his disability nor opined whether he suffers from cold payments prior to concluding Marcano’s hearing. intolerance. None of Marcano’s five experts were The Appellate Court reasoned that argument was aware he worked at the Sheriff’s Office for the past waived because Marcano failed to object to the decade. The pension board learned about Pension Board’s motion to temporarily suspend his Marcano’s experts after they completed their disability payments in 2016. reports, so it did not have an opportunity to provide his five experts with Marcano’s recent employment Marcano illustrates two key points for return to records. duty cases. First, a disability benefit recipient may lose his or her benefit if he or she engaged in The Pension Board reconvened Marcano’s hearing. conduct that shows they recovered from their The Harvey Chief of Police testified that if the disability. Second, if evidence shows the officer Pension Board determined Marcano recovered has recovered and the employer is willing to from his disability, Marcano would be rehired and accommodate any remaining disability, it may assigned a position compatible with whatever operate to terminate the disability pension accommodations he required. The Pension Board benefit.❖ voted to terminate Marcano’s disability benefit. After Marcano filed his complaint for administrative review, he died from a COVID- related illness. His eligible survivors pursued the © 2024 REIMER DOBROVOLNY & LABARDI PC 4 74 of 79 Page 29 of 34 Preexisting Mental Health Issues other doctors confirmed the diagnosis of substance Preclude Disability Benefits abuse disorder, including the pension board’s independent medical examiner who opined Stanczyk v. Retirement Bd. of the Policemen’s Plaintiff’s substance abuse disorder predated his Annuity and Benefit Fd. of the City of Chicago, appointment to the police department. Several 2024 IL App (1st) 221870-U doctors found Plaintiff to be disabled as a result of his substance abuse disorder. Only one doctor Plaintiff was injured while on duty when he was opined Plaintiff suffered from mild traumatic brain involved in a collision during a vehicle pursuit, injury as a result of the accident, making him unfit resulting in a concussion and injuries to his lower for duty. back, neck, left shoulder, and left arm. Plaintiff submitted an application for disability benefits At the disability hearing, Plaintiff asserted he was approximately three (3) years after the accident. At disabled as a result of a traumatic head injury the time of the hearing, Plaintiff had successfully suffered during the accident and/or the substance recovered from back surgery and treated with abuse problem arising due to his use of pain numerous doctors related to his cognitive medication. The pension board denied Plaintiff’s functions. application for disability benefits, finding his disability resulted from a mental defect he had at Prior to his appointment to the police department, the time he entered the police service. 40 ILCS 5/5- Plaintiff completed an appraisal of health history 157(e). Initially, the pension board found form indicating no history of concussions, head Plaintiff’s testimony was not credible due to his injuries, nervousness, or excessive worry. pattern of misrepresentation and obfuscation of the Regarding past alcohol use, Plaintiff indicated facts in order to obtain disability benefits. Further, “none.” Plaintiff also certified he did not engage in the pension board found there was no evidence willful misrepresentations, omissions, or Plaintiff was physically disabled. Instead, the falsifications on the form. credible evidence demonstrated his cognitive disfunction was due to a substance abuse disorder Regarding Plaintiff’s back injury, his treating and/or anxiety disorder, which were present well physician released him with no restrictions. before his appointment to the police department. Concerning his cognitive issues, multiple treating physicians found no abnormalities supporting his The Circuit Court reversed the pension board’s claims of vision problems, dizziness, or problems decision, finding Plaintiff was disabled as a result with mental processing, and released him to return of the concussion sustained during the accident and to duty. While receiving treatment for his cognitive there was no evidence the concussions he sustained injuries, Plaintiff disclosed he was treated for prior to his appointment resulted in his current anxiety since childhood, used alcohol, and disability. The Appellate Court revered the Circuit sustained five prior concussions dating back to Court and affirmed the pension board’s decision, grade school. Plaintiff also admitted using illicit finding the pension board’s conclusions were substances, but claimed he only did so after he neither contrary to the manifest weight of the started taking pain medications following the evidence nor clearly erroneous. accident. Plaintiff’s claims related to substance abuse were impeached by his statements to a Specifically, the Appellate Court found substantial psychologist and psychiatrist who examined or evidence supporting the pension board’s decision treated him for his cognitive issues. that Plaintiff was not disabled as a result of the accident. In this regard, no objective medical Before the disability hearing, Plaintiff sought evidence confirmed the symptoms Plaintiff was substance abuse treatment and was subsequently allegedly experiencing, and multiple doctors diagnosed with alcohol and substance abuse released him to return to work without limitation. disorders, as well as posttraumatic stress disorder from childhood and job-related trauma. Several © 2024 REIMER DOBROVOLNY & LABARDI PC 5 75 of 79 Page 30 of 34 Further, the manifest weight of the evidence coverage provided by the Village ceased and supported the finding Plaintiff’s inability to Mertes covered his insurance needs through his perform his police duties stemmed from his years- spouse’s unrelated MetLife policy. After he was long history of substance abuse and anxiety awarded a line of duty disability, Mertes then predating his appointment as an officer and were applied for PSEBA coverage. Both the award of not caused from the concussion or pain medication PSEBA coverage and the responsibility of paying taken after the accident. In this regard, Plaintiff for the interim coverage were heard by the failed to sustain his burden to establish a link administrative hearing officer for the Village. between the traffic accident and any disability. The Appellate Court held the hearing officer did not Lastly, the Appellate Court found Plaintiff’s failure clearly err in taking into consideration cumulative to be truthful and omission of information allowed injuries when determining the employee's the pension board to disregard his self-serving eligibility for benefits, the village's obligation to testimony. Accordingly, Plaintiff was not entitled pay the employee's health insurance premiums to either duty or ordinary disability benefits. attached when the employee was granted line-of- duty disability pension benefits, and the employee It is also important to note that unlike Articles 3 and 4 of the Pension Code, Article 5 at issue in this case did not forfeit his right to payment of health has a prohibition on receiving a disability benefit insurance premiums when he secured alternative based upon or caused by any mental or physical health insurance through his wife's health insurer. defect existing at the time the officer entered police The hearing officer determined Mertes had suffered service. ❖ a number of line of duty injuries, some of which were incurred when responding to what he believed Firefighter Entitled to PSEBA Benefits were emergencies. As the reader may recall, Due to Disability from Multiple Events PSEBA provides that full time law enforcement, correctional officers and firefighters killed or Mertes v. Vill. of Mt. Prospect, 2024 IL App (1st) catastrophically injured in the line of duty shall 221787 have the entirety of their health insurance Can a first responder be eligible for PSEBA premiums paid by their public employer. Under coverage even if his or her disability arose from a Illinois law, a “catastrophic injury” is synonymous cumulation of injuries, and not a single, with an injury resulting in a line-of-duty disability catastrophic event? The First District Appellate pension under the Pension Code. Court declared Firefighter Mertes was eligible for While the Village argued that only two of Mertes's PSEBA coverage after a hearing officer concluded injuries were incurred while responding to what that it was sufficient for some, but not all, of could arguably be considered emergencies and Mertes's injuries to have occurred while responding neither ended his career, the Appellate Court to what he reasonably believed to be emergencies, disagreed. The inclusion of the term “reasonably so long as those injuries contributed to his ultimate believed” allows for broad applicability to the disability. Further, the Appellate Court re-affirmed many ways an emergency may arise during a first the rule that PSEBA coverage starts on the effective responder's employment. Where a first responder date of the applicant’s line-of-duty disability and suffers multiple injuries, one or more of which that the Village is ultimately responsible for occur during an emergency, those injuries will coverage costs in this case. qualify him for benefits so long as they are a Mertes, a firefighter, had suffered a number of line contributing cause of his ultimate disability. They of duty injuries, some of which were incurred when do not need to be the sole cause. Moreover, the responding to what he believed were emergencies. number of injuries that occurred in nonemergency While his disability was pending, his insurance situations is not controlling. Rather, it is the degree © 2024 REIMER DOBROVOLNY & LABARDI PC 6 76 of 79 Page 31 of 34 to which the injuries that did occur during claim it was litigating the underlying PSEBA emergencies contributed to Mertes's ultimate issues. The Appellate court stated, “To credit the disability. Village's interpretation of Section 10(a)(1) would create a perverse incentive for a public employer to Contrary to the Village’s claim, Mertes was also deny all health insurance benefits pending an eligible for coverage from the date of his eligibility determination in the expectation that the catastrophic injury, i.e. the date determined by the catastrophically injured first responder would pension board when it found Mertes eligible for his obtain alternative benefits in the interim, which line of duty disability. would then extinguish the public employer's In this case, Mertes had to find his own medical obligation to provide any benefits under the Act.” insurance while litigating the PSEBA claims. Is the Similarly flawed is the contention that the mere Village responsible to reimburse the medical availability of other health insurance (regardless of premiums paid by Mertes now that he has been entitlement, level of coverage, or cost) disqualifies found eligible for PSEBA? The obligation to pay a a catastrophically injured first responder receiving claimant's insurance premiums attaches at the time benefits under the Act. Under such a reading, the the claimant is deemed “catastrophically injured,” availability of health insurance in the open which typically coincides with the grant of a line- marketplace or through the Affordable Care Act of-duty disability pension. Public policy supports would seemingly always eliminate the public a uniform date of attachment to account for cases employer's obligation under the Act. A public where a date of injury is not readily determinable, employer would then rarely, if ever, be obligated to such as Mertes’ case as he suffered from the fulfill the requirements of the Act, a result the accumulation of several prior injuries or the legislature surely did not intend. aggravation of a preexisting injury or condition and not a readily determined single event. By securing alternative insurance when the Village stopped paying for his insurance, Mertes did not The Act is silent however, on the issue of re- forfeit his right to benefits under the Act. He in imbursement of coverage as presented in the essence sought “cover” and mitigated his damages Mertes’ appeal. Who bears the financial burden for pending a determination as to his eligibility for the catastrophically injured first responder's health benefits under the Act. Mertes's decision to avail insurance premiums from the time he is determined himself of alternative insurance coverage through to be catastrophically injured and no longer able to his wife's employment was a reasonable effort to work until it is determined that he qualifies for limit the harm caused by the Village's decision to benefits under the Act? The text, structure, or stop paying for his health insurance. In order to put purpose of the Act does not support the notion that the Merteses in the same position that they would a catastrophically injured first responder must have been had the Village paid “the entire sacrifice insurance coverage for himself and his premium” from the date of Mertes's disability family while he awaits a determination on his determination, the Village must reimburse the eligibility for benefits under the Act. Quite the Merteses for the premiums they paid on the contrary, the Act “ensures a continuation of health MetLife policy.❖ insurance coverage following the termination of the officer's employment.” Calling the Village’s proposed scheme – that the employee is solely responsible for payments and should not be reimbursed – an absurd result, the Appellate Court found the employee should be re- imbursed for the insurance coverage payments made when the Village ceased coverage under the © 2024 REIMER DOBROVOLNY & LABARDI PC 7 77 of 79 Page 32 of 34 Loss of Pension Results in Loss of enforce the existing judgment. The Court found the Monthly QILDRO for Ex-Spouse requested relief contrary to the existing judgment which provided for a 50/50 split of the member’s In re Marriage of Pruente, 2024 IL App (1st) retirement benefits. Rather, the ex-spouse sought 231161-U to calculate a new amount based on what the member could have received had his pension not William Pruente was a Chicago police officer been revoked. This would not reflect a 50/50 whose retirement pension benefit was revoked by division of the pension benefit. The parties could the Fund in 2022 due to a duty related felony have elected to require payment of a specific conviction. Prior to his retirement, he divorced his monthly dollar amount in the QILDRO but instead wife. A judgment of dissolution of marriage was chose the percentage-based formula. Had the entered in 2013 incorporating a marital settlement parties wished a continued fixed payment, they agreement (MSA) providing for a 50/50 split in would have needed to elect a different formula in assets including Pruente’s police pension benefit. the QILDRO. A QILDRO was entered providing the alternate payee was to receive 50% of the member’s Because the ex-spouse sought to change the 50/50 retirement benefit. distribution, the Court found this to be a modification and not enforcement of the existing When the member retired in 2019, a calculation judgment. Because more than 30 days had passed order was entered distilling the 50% award to a since the judgment of dissolution had been entered, payment to the alternate payee of $1,721.07 per the Court did not have jurisdiction to consider such month. When the member’s retirement benefit was a request. Conversely, the Court did retain revoked in 2022 as the result of his felony jurisdiction to modify the calculation order to conviction, the pension fund advised the parties conform to the judgment of dissolution. Therefore, they were only entitled to a lump-sum refund of entry of an amended calculation order effectuating pension contributions but would need an amended a 50/50 split in the contribution refund due to the calculation order to effectuate such a division. member was appropriate. In response, the ex-spouse filed a petition to Pension Boards must tread carefully in enforce judgment seeking to force the member to administering QILDROs, being careful to strictly continue to pay the monthly amount she would adhere to the orders entered. Administration of have been entitled to under the calculation order QILDROs is a technically complex matter. Should had the member’s pension not been revoked. At the your Board have any questions on how to properly same time, the member asked the court to enter a administer payments pursuant to a QILDRO, new calculation order to effectuate the 50% please do not hesitate to ask your RDL attorney.❖ division of the contribution refund thereby terminating the monthly QILDRO obligation. The issue in this appeal revolved around Amendment to Municipal Code Protects modification of judgments. By law, once 30 days Disabled Police Officers have elapsed since entry of a final judgment, the Senate Bill 2918 trial court loses jurisdiction over the case. This means the judgment cannot be modified after that time. However, a court retains jurisdiction to Both chambers of the Illinois Legislature have enforce its judgment even after 30 days from the passed Senate Bill 2918 designed to protect the jobs date of entry. of disabled police officers. Mirroring a similar Pension Code provision applicable to Article 4 The Court then turned to the issue of whether the firefighter participants, this new law provides, “A ex-spouse’s petition to require continued monthly physical or mental disability that constitutes, in payments constitutes a modification or seeks to whole or in part, the basis of an application for © 2024 REIMER DOBROVOLNY & LABARDI PC 8 78 of 79 Page 33 of 34 benefits under Article 3 of the Illinois Pension was sent to his desk for signature on June 21, 2024. Code may not be used, in whole or in part, as a Under Illinois law, the Governor has 60 days to act cause for a municipality to discharge a police on the Bill. If he does nothing within 60 days, the officer.” In short, under the new law a police Bill automatically becomes law. ❖ officer cannot be discharged due to any disability claimed for benefits under the Pension Code. Suggested Agenda Items for October (or 4th Quarter) The new law also deals with re-instatement of police officers from disability. Under the Pension • Adoption of recommended tax levy from Code, disabled police officers under age 50 are required to be evaluated on an annual basis to actuarial valuation and forward request to determine whether they remain disabled. In the Municipality. event the Pension Board finds the disabled officer can return to service, it certifies to the police chief • Adoption of municipal compliance report the officer is no longer disabled. With this new and forward to Municipality. amendment, when the police chief receives that certification from the Pension Board, the chief must • Schedule next calendar year quarterly order immediate reinstatement to active service at meeting dates/times. the same rank held by the officer at the time they were placed on disability. Previously, the returning • Deadline for filing independent audit officer was not guaranteed a return to service after report with DOI. being removed from the disability rolls. While both legislative chambers have passed • Deadline for filing of DOI annual report. Senate Bill 2918, at the time of this writing it has (October 31st) yet to be signed into law by Governor Pritzker. It REIMER DOBROVOLNY & LABARDI PC NEWS • May 3, 2024, RDL partner Brian LaBardi presented at the IPFA spring pension seminar in Addison. • May 7-10, 2024, RDL attorneys attended and presented at the IPPFA Illinois Pension Conference in Galena. • June 3-4, 2024, RDL managing partner Rick Reimer presented at the IPPFA PTSD & Wellness Retreat in Lake Geneva. • September 24-27, 2024, RDL attorneys will attend and present at the IPPFA MidAmerican Pension Conference in Lincolnshire. • November 1, 2024, RDL partner Brian LaBardi will present at the IPFA fall conference in Addison. Legal and Legislative Update Volume 25, Issue 3, July 2024 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 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. © 2024 REIMER DOBROVOLNY & LABARDI PC 9 79 of 79 Page 34 of 34