Police Pension Fund Board

WHEATON POLICE PENSION FUND 900 West Liberty Drive, Wheaton, Illinois | 630-260-2161 Brett Mathieson Don Wilson Angela Smith James Craig Tim Bayee President Vice President Assistant Secretary Secretary Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES FEBRUARY 20, 2020 A regular meeting of the Wheaton Police Pension Fund Board of Trustees was held on Thursday, February 20, 2020 at 5:00 p.m. at the Wheaton Police Department located at 900 W. Liberty Drive, Wheaton, Illinois 60187, pursuant to notice. CALL TO ORDER: Trustee Mathieson called the meeting to order at 5:00 p.m. ROLL CALL: PRESENT: Trustees Brett Mathieson, James Craig, Don Wilson and Angela Smith ABSENT: Trustee Tim Bayee ALSO PRESENT: Mary Tomanek, Graystone Consulting; Kelley Murray, Lauterbach & Amen, LLP (L&A); Active Member Jacquelyn Johnson, Wheaton Police Department PUBLICE COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: November 21, 2019 Regular Meeting: The Board reviewed the November 21, 2019 meeting minutes. A motion was made by Trustee Wilson and seconded by Trustee Smith to approve November 21, 2019 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 and will not release them at this time due to pending matters. A motion was made by Trustee Craig and seconded by Trustee Mathieson to keep the closed session meeting minutes closed. Motion carried unanimously by voice vote. INVESTMENT REPORT – GRAYSTONE CONSULTING: Quarterly Performance Review: Ms. Tomanek presented the Quarterly Performance Review for the period ending December 31, 2019. As of December 31, 2019, the quarter-to-date net return is 5.77%, the year-to-date net return is 19.75% and the ending market value is $61,129,532. The current asset allocation is as follows: fixed income at 36% and equities at 63%. Mary Tomanek reviewed the recent transactions and discussed cash flow needs for the upcoming quarter. The Board discussed balancing the portfolio. A motion was made by Trustee Mathieson and seconded by Trustee Wilson to transfer: $250,000 from US Bank Cash Equity Fund #1, $250,000 from US Bank Cash Equity Fund #2 and $500,000 from Van Guard Index 500 and reallocate the proceeds to the Illinois Funds Account, based on the recommendation of Graystone Consulting. Motion carried by roll call vote. AYES: Trustees Mathieson, Craig, Smith and Wilson NAYS: None ABSENT: Trustee Bayee Wheaton Police Pension Fund Meeting Minutes – February 20, 2020 Page 2 of 4 Review/Update Investment Policy: The Board discussed the Sustainable Investing Act 101-473 and will update the Investment Policy as needed. Ms. Tomanek left the meeting at 5:33 p.m. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Non-Duty Disability Benefit – Jacquelyn Johnson: The Board held a non-duty disability hearing for Jacquelyn Johnson. A roll call was made to enter into the Disability Hearing of Jacquelyn Johnson at 5:35 p.m. AYES: Trustees Mathieson, Craig, Smith and Wilson NAYS: None ABSENT: Trustee Bayee The Board reviewed and discussed the admitted evidence (medical examinations) submitted for Jacquelyn Johnson. Jacquelyn Johnson answered all questions. A motion was made by Trustee Mathieson and seconded by Trustee Wilson to award Jacquelyn Johnson a temporary non-duty disability benefit due to pregnancy, pursuant to Section 3-114.2 of the Illinois Pension Code equal to 50% of the salary attached to her rank effective on the date of her suspension from police duty as a result of her pregnancy and terminating the earlier of Jacquelyn Johnson’s return to police duty or six weeks after the birth of her child. Motion carried by roll call vote. AYES: Trustees Mathieson, Craig, Smith and Wilson NAYS: None ABSENT: Trustee Bayee A motion was made by Trustee Wilson and seconded by Trustee Smith to adjourn the hearing at 5:46 p.m. 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 twelve-month period ending December 31, 2019. As of December 31, 2019, the net position held in trust for pension benefits is $62,473,661.70 with a change in position of $9,586,370.96. 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 October 1, 2019 through December 31, 2019 for total disbursements of $208,118.25. A motion was made by Trustee Craig and seconded by Trustee Smith to accept the Monthly Financial Report and to approve the disbursements shown on the Vendor Check Report in the amount of $208,118.25. Motion carried unanimously by voice vote. Additional Bills, if any: There were no additional bills presented for approval. COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A informed the Board that due to recently implemented requirements mandated by the IDOI, spousal data will be necessary in order to file the IDOI Annual Statement. L&A recommended issuing Affidavits of Continued Eligibility to all pensioners with the December payroll cycle, to coincide with the fiscal year-end and ensure adequate time to compile the necessary date. Wheaton Police Pension Fund Meeting Minutes – February 20, 2020 Page 3 of 4 Statements of Economic Interest: The Board noted that the List of Filers was to be submitted to the County by the City by February 1, 2020. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2020. 2020 IRS Mileage: The Board noted that the IRS standard business mileage rate used for reimbursement decreased to $0.575 per mile effective January 1, 2020. 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: Applications for Membership – Briana Hartman, Adam Welte and Corey White: The Board reviewed the Applications for Membership submitted by Briana Hartman, Adam Welte and Corey White. A motion was made by Trustee Mathieson and seconded by Trustee Wilson to accept Briana Hartman, Adam Welte and Corey White into the Wheaton Police Pension Fund effective December 31, 2019, as a Tier II participant. Motion carried unanimously by voice vote. Approve Regular Retirement Benefits – Edward Fanning: The Board reviewed the regular retirement benefit calculation for Edward Fanning prepared by L&A. Detective Fanning had an entry date of December 27, 1999, retirement date of January 30, 2020, effective date of pension of January 31, 2020, 50 years of age at date of retirement, 20 years of creditable service, applicable salary of $110,242.96, applicable pension percentage of 50%, amount of originally granted monthly pension of $4,593.46 and amount of originally granted annual pension of $55,121.52. A motion was made by Trustee Craig and seconded by Trustee Smith to approve Edward Fanning’s regular retirement benefit as calculated by L&A. Motion carried unanimously by voice vote. OLD BUSINESS: Reinstatement of Creditable Service – Kayte Witten: The Board discussed the reinstatement of creditable service for Kayte Witten. A motion was made by Trustee Craig and seconded by Trustee Smith to accept Kayte Witten’s reinstatement payment schedule calculated by L&A. Motion carried unanimously by voice vote. Repurchase Creditable Service – Bradley Caliendo: The Board tabled this item until the next regular meeting. NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2020 Cost of Living Adjustments (see attached) calculated by L&A. A motion was made by Trustee Wilson and seconded by Trustee Mathieson to approve the 2020 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried unanimously by voice vote. Review Trustee Expirations and Elections Procedures: The Board noted that the appointed Trustee position currently held by Trustee Mathieson is expiring in April 2020 and he desires to remain on the Board. The Board will contact the City and seek reappointment of Trustee Mathieson to the Board. Wheaton Police Pension Fund Meeting Minutes – February 20, 2020 Page 4 of 4 IDOI Annual Statement: The Board noted that the IDOI Annual Statement is in process and the final report will be sent to the Board for review upon completion. ATTORNEY’S REPORT – REIMER & DOBROVOLNY PC: Review/Approve Decision & Order for Kimberly Loster-Rice: The Board reviewed the Decision and Order for Kimberly Loster- Rice prepared by Attorney Reimer. A motion was made by Trustee Wilson and seconded by Trustee Smith to approve the Decision and Order for Kimberly Loster-Rice as presented. Motion carried unanimously by voice vote. Annual Independent Medical Examination – Bradley Mann: The Board tabled this item until the next regular meeting. Legal Updates: The Board was presented with Legal and Legislative Update newsletter quarterly provided by Reimer & Dobrovolny PC. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Mathieson and seconded by Trustee Wilson to adjourn the meeting at 6:14 p.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for May 21, 2020 at 5:00 p.m. __________________________________ Board President or Secretary Minutes approved by the Board of Trustees on __________________________ Minutes prepared by Kelley Murray, Pension Services Administrator, Lauterbach & Amen, LLP