Police Pension Board

MINUTES OF A REGULAR MEETING OF THE HANOVER PARK POLICE PENSION FUND BOARD OF TRUSTEES JULY 13, 2021 A regular meeting of the Hanover Park Police Pension Fund Board of Trustees was held on Tuesday, July 13, 2021 at 4:00 p.m. via videoconference without a quorum of the public body physically present and without any singular member of the public body present at the Board’s regular meeting location because of a disaster declaration related to COVID-19 public health concerns affecting the Village of Hanover Park. The Hanover Park Police Pension Fund Board President has determined that an in-person meeting with all participants is not practical, prudent or feasible because of the disaster, pursuant to notice. CALL TO ORDER: Trustee Sullivan called the meeting to order at 4:01 p.m. ROLL CALL: PRESENT: Trustees George Sullivan, Thomas Langhenry, Remy Navarrete (joined the meeting at 4:05 p.m.) and Dave Jonen ABSENT: Trustee Kevin Pini ALSO PRESENT: Craig Larsen, Mission Wealth; Amanda Secor, Lauterbach & Amen, LLP (L&A); Attorney Robert M. Zelek, Law Offices of Robert M. Zelek All attendees present acknowledged the meeting as a public meeting and provided their individual consent to be monitored via audioconference and/or videoconference and to be recorded. PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: April 13, 2021 Regular Meeting: The Board reviewed the April 13, 2021 regular meeting minutes. A motion was made by Trustee Sullivan and seconded by Trustee Jonen to approve the April 13, 2021 regular meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes for review. Hanover Park Police Pension Fund Meeting Minutes – July 13, 2021 Page 2 of 5 Trustee Navarrete joined the meeting at 4:05 p.m. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report and Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the five-month period ending May 31, 2021 prepared by L&A. As of May 31, 2021, the net position held in trust for pension benefits is $43,722,382.61 for a change in position of $4,265,286.41. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal and the Vendor Check Report for the period of March 1, 2021 through May 31, 2021 for total disbursements in the amount of $495,985.14. A motion was made by Trustee Sullivan and seconded by Trustee Navarrete to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Vendor Check Report in the amount $495,985.14. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Additional Bills, if any: There were no additional bills presented for approval. INVESTMENT REPORTS: Mission Wealth Portfolio Review: Mr. Larsen presented the Portfolio Review for the period ending June 30, 2021. As of June 30, 2021, the quarter-to-date total net return is 4.02% for a change in investment value of $1,692,122 and an ending market value of $44,030,739. The current asset allocation is as follows: Fixed Income at 28.92%, Equities at 69.41% and Cash Equivalents at 1.67%. Mr. Larsen reviewed the Market Commentary, Equity Portfolio, Fixed Income Portfolio and Transaction Ledger Report with the Board. The Board discussed rebalancing the portfolio, as the equity allocation exceeds the target set forth in the Investment Policy. A motion was made by Trustee Sullivan and seconded by Trustee Langhenry to transfer $2,800,000 from the equity allocation and reallocate the proceeds equally between PNC and Sawyer Falduto Asset Management, LLC; $1,400,000 to each respective bond manager. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Sawyer Falduto Asset Management, LLC/PNC Quarterly Investment Performance Reports: The Board was provided with the Quarterly Investment Performance Reports prepared by Sawyer Falduto Asset Management, LLC and PNC. Approve Investment Reports/Transactions: The Board reviewed the Investment Reports and transactions in summary listed on the custodial statements. A motion was made by Trustee Sullivan and seconded by Trustee Navarrete to approve the Investment Reports and transactions listed on the custodial statements. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Hanover Park Police Pension Fund Meeting Minutes – July 13, 2021 Page 3 of 5 Review/Update Investment Policy: The Board discussed the Investment Policy and determined that no changes are required at this time. COMMUNICATIONS AND REPORTS: Active Member File Maintenance: The Board noted that L&A will prepare Active Member File Maintenance letters for distribution to all active members requesting any additional pension file documents. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and discussed upcoming training opportunities. Trustees were reminded to submit any certificates of completion to L&A for recordkeeping. Approval of Trustee Training Registration Fees and Reimbursable Expenses: There were no trustee training registrations or reimbursable expenses presented for approval. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: The Board noted the following members resigned from the Hanover Park Police Department: Aston Chan, effective July 9, 2021 and Daniel Galto, effective July 12, 2021. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: There were applications for retirement or disability benefits. OLD BUSINESS: Discussion/Possible Action Regarding Retroactive Holiday Pay Contributions: Attorney Zelek informed the Board that the second district appellate court reversed the Board and circuit clerk decisions and found the holiday pay clause is not pensionable. Attorney Zelek spoke with MAP counsel and determined an appeal to the Supreme Court will not be sought. No further action is required. IDOI Annual Statement: The Board noted that the finalized report was filed prior to the June 30, 2021 deadline. NEW BUSINESS: Review/Approve – Actuarial Valuation and Tax Levy Request: The Board reviewed the finalized Actuarial Valuation prepared by L&A. Based on data and assumptions, the recommended contribution is $3,771,615 which is a $309,048 increase from the prior year contribution. The statutory minimum contribution requirement is $2,267,993. The Board discussed requesting a tax levy in the amount of $3,771,615. A motion was made by Trustee Sullivan and seconded by Trustee Jonen to accept the Actuarial Valuation as prepared and to request a tax levy in the amount of $3,771,615 from the Village of Hanover Park based on the recommended amount stated in the Actuarial Valuation prepared by L&A. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Review/Adopt – Municipal Compliance Report: The Board will review the Municipal Compliance Report at the next regular meeting. Hanover Park Police Pension Fund Meeting Minutes – July 13, 2021 Page 4 of 5 Review/Adopt – AR-2021-01: Resolution to Appoint Authorized Representative: The Board reviewed AR-2021-01: Resolution to Appoint Authorized Representative issued by IPOPIF. A motion was made by Trustee Navarrete and seconded by Trustee Sullivan to adopt AR-2021-01 and to appoint Trustees Sullivan and Navarrete as the Authorized Representatives. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Trustee Langhenry left the meeting at 4:52 p.m. Review/Approve – Fiduciary Liability Insurance Renewal: The Board discussed the fiduciary liability insurance renewal quote to be provided by Mesirow Insurance Services, Inc. through Ullico Casualty Group, LLC. A motion was made by Trustee Sullivan and seconded by Trustee Jonen to approve payment of the fiduciary liability insurance renewal premium effective September 1, 2021 thought September 1, 2022 in an amount not to exceed $5,000, upon receipt and review of the renewal documents and invoice. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Board Officer Elections – President, Vice President, Secretary and Assistant Secretary: The Board discussed Board Officer Elections and nominated the following slate of Officers: George Sullivan as President, Kevin Pini as Vice President, Thomas Langhenry as Secretary and Dave Jonen as Assistant Secretary. A motion was made by Trustee Sullivan and seconded by Trustee Navarrete to elect the slate of Officers as stated. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini FOIA Officer and OMA Designee: The Board discussed designating Village Clerk Kristy Merrill as the FOIA Officer and OMA Designee. A motion was made by Trustee Sullivan and seconded by Trustee Navarrete to designate the Village Clerk as the FOIA Officer and OMA Designee. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini Military Service Purchase – Steven Stotz: The Board noted that L&A mailed correspondence to Steven Stotz regarding his request to calculate the amount of money due to the Hanover Park Police Pension Fund to purchase twenty-four months of military service time, but no response has been received to date. Further discussion will be held at the next regular meeting. The Board noted that there is currently no opportunity for Article 3 members to transfer creditable service from Article 7. Hanover Park Police Pension Fund Meeting Minutes – July 13, 2021 Page 5 of 5 ATTORNEY’S REPORT: Legal Updates: There were no legal updates. Review/Adopt – Board Rules & Regulations: The Board discussed the Rules & Regulations prepared by Attorney Zelek. The Board will review the proposed Rules & Regulations prior to the next regular meeting. Status Update – Dolores Lane Surviving Spouse Benefit: Attorney Zelek apprised the Board that the Dolores Lane matter has been set for hearing on August 31, 2021. A status update will be provided at the next regular meeting. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Sullivan and seconded by Trustee Navarrete to adjourn the meeting at 5:08 p.m. Motion carried by roll call vote. AYES: Trustees Sullivan, Langhenry and Jonen NAYS: None ABSENT: Trustees Navarrete and Pini The next regular meeting is scheduled for October 12, 2021 at 4:00 p.m. ___________________________________________ Board President or Secretary Minutes approved by the Board of Trustees on ___________________ Minutes prepared by Amanda Secor, Pension Services Administrator, Lauterbach & Amen, LLP