Police Pension Board of Trustees

MINUTES OF A REGULAR MEETING OF THE ROCK ISLAND POLICE PENSION FUND BOARD OF TRUSTEES JULY 24, 2024 A regular meeting of the Rock Island Police Pension Fund Board of Trustees was held on Wednesday, July 24, 2024 at 4:30 p.m. in the Rock Island Police Department Community Room located at 1212 5th Avenue, Rock Island, Illinois 61201, pursuant to notice. CALL TO ORDER: Trustee Muehler called the meeting to order at 4:30 p.m. ROLL CALL: PRESENT: Trustees Kondon Karzin (May 2025), Tim Muehler (May 2025) and Jessica Sager (April 2025) ABSENT: Trustees Aaron Curry (May 2025) and James Morris (May 2026) ALSO PRESENT: Retired Police Chief Richard Landi, Rock Island Police Department; Attorney Vince Mancini, Reimer Dobrovolny & LaBardi PC; Sara Gutierrez and Amanda Roth, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: Mr. Landi addressed the Board regarding his regular retirement benefit calculation and noted that his legal counsel contacted Attorney Rick Reimer on May 20, 2024 and June 21, 2024 and to date a response has not been received. Attorney Mancini will issue correspondence for this matter and further discussion will be held at the next regular meeting. APPROVAL OF MEETING MINUTES: March 14, 2024 Special Meeting Transcript: The Board will review the March 14, 2024 special meeting transcript at the next regular meeting. March 14, 2024 Closed Session Meeting: The Board will review the March 14, 2024 closed session meeting minutes at the next regular meeting. April 24, 2024 Regular Meeting: The Board reviewed the April 24, 2024 regular meeting minutes. A motion was made by Trustee Sager and seconded by Trustee Muehler to approve the April 24, 2024 regular meeting minutes as written. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Meeting Minutes: The Board reviewed the closed session meeting minutes. A motion was made by Trustee Muehler and seconded by Trustee Sager to not release them at this time due to pending matters. Motion carried unanimously by voice vote. 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, 2024 prepared by L&A. As of May 31, 2024, the net position held in trust for pension benefits is $43,301,485.55 for a change in position of ($507,769.18). The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal, Quarterly Deduction Report, Quarterly Transfer Report and Quarterly Disbursement Report for the period March 1, 2024 through May 31, 2024 for total payments of $266,101.86. A motion was made by Trustee Karzin and seconded by Trustee Muehler to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Quarterly Disbursement Report in the amount of $266,101.86. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris Rock Island Police Pension Fund Meeting Minutes – July 24, 2024 Page 2 of 5 Additional Bills, if any: There were no additional bills presented for approval. Discussion/Possible Action – Cash Management Policy: The Board discussed the cash requisite for the purpose of remitting pension benefit payments and expenses and determined that no updates are required at this time. Discussion/Possible Action – Money Market Account for the Rock Island Police Pension Fund: The Board discussed opening a money market account for the Rock Island Police Pension Fund. The Board will request information from Sawyer Falduto Asset Management, LLC and American Bank & Trust and further discussion will be held at the next regular meeting. INVESTMENT REPORT: IPOPIF – Verus Advisory, Inc.: The Board reviewed the IPOPIF Investment Performance Report prepared by Verus Advisory, Inc. for the period ending May 31, 2024. As of May 31, 2024, the one-month total return is 2.9% and the year-to-date return is 4.4% for an ending market value of $10,419,890,794. State Street Statements: The Board reviewed the State Street Statement for the month ending May 31, 2024. The beginning value is $41,896,585.69, the ending value was $42,825,689.71, the month-to-date net return was 2.82% and the year-to-date net return is 4.28%. COMMUNICATIONS AND REPORTS: Active Member File Maintenance: The Board noted that L&A prepared 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 and Reimbursable Expenses: The Board reviewed the following Trustee training reimbursements: • Reimbursement to Trustee Karzin in the total amount of $913.27 for 2024 IPPFA Illinois Pension Conference expenses: o Hotel: $785.97 o Mileage: 190 miles at $0.67/mile totaling $127.30 • Reimbursement to Trustee Morris in the total amount of $345.90 for 2024 IPPFA Illinois Pension Conference expenses: o Hotel: $207.59 o Mileage: 186 miles at $0.67/mile totaling $124.62 o Meals: $13.69 A motion was made by Trustee Muehler and seconded by Trustee Sager to approve the Trustee training reimbursement requests as presented. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership – Skylar Jess: The Board reviewed the Application for Membership submitted by Skylar Rock Island Police Pension Fund Meeting Minutes – July 24, 2024 Page 3 of 5 Jess. A motion was made by Trustee Karzin and seconded by Trustee Muehler to accept Skylar Jess into the Rock Island Police Pension Fund effective July 8, 2024, as a Tier II participant. Motion carried unanimously by voice vote. Withdrawal from Fund – Jasmine Jaime: The Board noted that Jasmine Jaime has separated service from the Rock Island Police Department effective February 26, 2024 and a contribution refund request has not been submitted at this time. Updates will be provided as they become available. Approve Contribution Refund – Jade Ford: The Board reviewed the contribution refund request submitted by Jade Ford. A motion was made by Trustee Muehler and seconded by Trustee Sager to approve Jade Ford’s contribution refund in the amount of $4,541.17 paid directly to herself issued on June 5, 2024. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Regular Retirement Benefits – Richard Landi and Benjamin Smith: The Board reviewed the regular retirement benefit calculation for Richard Landi prepared by L&A. Police Chief Landi had an entry date of December 20, 1993, retirement date of April 26, 2024, effective date of pension of April 27, 2024, 54 years of age at date of retirement, 30 years of creditable service, applicable salary of $143,094.08, applicable pension percentage of 75%, amount of originally granted monthly pension of $8,943.38 and amount of originally granted annual pension of $107,320.56. A motion was made by Trustee Karzin and seconded by Trustee Muehler to approve Richard Landi’s regular retirement benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris Attorney Mancini noted that a hearing will be scheduled to further review the salary provided for Richard Landi’s regular retirement benefit calculation. Updates will be provided to the Board as they become available. The Board also reviewed the regular retirement benefit calculation for Benjamin Smith prepared by L&A. Lieutenant Smith had an entry date of January 30, 1995, retirement date of July 26, 2024, effective date of pension of July 27, 2024, 53 years of age at date of retirement, 29 years of creditable service, applicable salary of $112,922, applicable pension percentage of 72.5%, amount of originally granted monthly pension of $6,822.37 and amount of originally granted annual pension of $81,868.44. A motion was made by Trustee Muehler and seconded by Trustee Sager to approve Benjamin Smith’s regular retirement benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris Approve Non-Duty Disability Retirement Benefits – Philip Ledbetter: The Board reviewed the non-duty disability benefit calculation for Philip Ledbetter prepared by L&A. Officer Ledbetter had an entry date of July 27, 2009, disability date of November 22, 2022, effective date of pension of November 23, 2022, 42 Rock Island Police Pension Fund Meeting Minutes – July 24, 2024 Page 4 of 5 years of age at date of disability, 13 years of creditable service, applicable salary of $75,680.80, applicable pension percentage of 50%, amount of originally granted monthly pension of $3,153.37 and amount of originally granted annual pension of $37,840.44. The Board also reviewed the variance calculation prepared by L&A for Mr. Ledbetter and noted that there is no variance due at this time. A motion was made by Trustee Karzin and seconded by Trustee Sager to approve Philip Ledbetter’s non-duty disability benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris Mr. Landi left the meeting at 5:03 p.m. Review, Adopt and Publish Decision and Order – Philip Ledbetter: The Board reviewed the Decision and Order prepared by Reimer Dobrovolny & LaBardi PC. A motion was made by Trustee Muehler and seconded by Trustee Sager to approve, adopt and publish the Decision and Order for Philip Ledbetter as presented. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris Deceased Pensioner – Glennis Bote/Approval of Surviving Spouse Benefits – Judith Bote: The Board noted that Glennis Bote passed away on June 8, 2024. The Board reviewed the surviving spouse benefit calculation for Judith Bote with an effective date of June 9, 2024 for a monthly benefit of $4,371.32 with no additional increases. A motion was made by Trustee Muehler and seconded by Trustee Sager to approve the surviving spouse benefit of Judith Bote calculated by L&A. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris OLD BUSINESS: Discussion/Possible Action – Portability Updates – Zachary Stokas: The Board discussed Zachary Stokas’ transfer of creditable service from the Rock Island Police Pension Fund to the Aurora Police Pension Fund and noted that calculations are in process. Further discussion will be held at the next regular meeting. IDOI Annual Statement: The Board noted that the finalized report was filed prior to the June 30, 2024 deadline. NEW BUSINESS: Review/Approve – Actuarial Valuation and Tax Levy Request: The Board reviewed the finalized Actuarial Valuation as prepared by L&A. Based on data and assumptions, the recommended contribution amount is $6,271,466 which is a $370,713 increase from the prior year contribution. A motion was made by Trustee Karzin and seconded by Trustee Muehler to accept the Actuarial Valuation as prepared and to request a tax levy in the amount of $6,271,466 from the City of Rock Island, based on the recommended amount stated in the Actuarial Valuation prepared by L&A. Motion carried by roll call vote. AYES: Trustees Karzin, Muehler and Sager NAYS: None ABSENT: Trustees Curry and Morris