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 MAY 21, 2020 A regular meeting of the Wheaton Police Pension Fund Board of Trustees was held via teleconference in accordance with Section 6 of Governor Pritzker’s Executive Order 2020-33 (COVID-19 Executive Order No.31) on Thursday, May 21, 2020 at 5:00 p.m., pursuant to notice. CALL TO ORDER: Trustee Mathieson called the meeting to order at 5:05 p.m. ROLL CALL: PRESENT: Trustees Brett Mathieson, James Craig, Don Wilson, Tim Bayee and Angela Smith ABSENT: None ALSO PRESENT: Mary Tomanek, Graystone Consulting (via teleconference); Kelley Murray, Lauterbach & Amen, LLP (L&A) (via teleconference); Finance Director Bob Lehnhardt, City of Wheaton (via teleconference), Attorney Rick Reimer, Reimer & Dobrovolny PC (via teleconference) NEW BUSINESS: Review/Approve – Funding Requirements for Benefit Payments: Mr. Lehnhardt explained that due to the current COVID-19 pandemic an extension is being granted to collect property taxes resulting in potential delays of municipal contributions to the Wheaton Police Pension Fund. A motion was made by Trustee Mathieson and seconded by Trustee Craig to authorize Mary Tomanek to reallocate up to $750,000 from the Chartwell fixed income fund to cash once notification by the City Treasurer to all Board members and written approval by a minimum of two Board members is received. Motion carried by roll call. AYES: Trustees Mathieson, Craig, Wilson, Bayee and Smith NAYS: None ABSENT: None Mr. Lehnhardt left the meeting at 5:27 p.m. OLD BUSINESS: Reinstatement of Creditable Service – Bradley Caliendo: Attorney Reimer discussed the reinstatement of creditable service for Bradley Caliendo. Further discussion will be held at the next regular meeting. Attorney Reimer left the meeting at 5:52 p.m. INVESTMENT REPORT – GRAYSTONE CONSULTING: Quarterly Performance Review: Ms. Tomanek presented the Quarterly Performance Review for the period ending March 31, 2020. As of March 31, 2020, the quarter-to-date net return is (14.71%), the year-to-date net return is (14.71%) and the ending market value is $52,424,986. The current asset allocation is as follows: fixed income at 45% and equities at 55%. Mary Tomanek reviewed the recent transactions and discussed cash flow needs for the upcoming quarter. Wheaton Police Pension Fund Meeting Minutes – May 21, 2020 Page 2 of 4 The Board discussed rebalancing the portfolio. A motion was made by Trustee Mathieson and seconded by Trustee Bayee to transfer: $100,000 from US Bank Cash Equity Mutual Fund #1 and $100,000 from US Bank Cash Equity Mutual Fund #2 and reallocate the proceeds to the Prudential High Yield account, based on the recommendation of Graystone Consulting. Motion carried by roll call vote. AYES: Trustees Mathieson, Craig, Smith, Bayee and Wilson NAYS: None ABSENT: None Review/Update Investment Policy: The Board reviewed and discussed the amended policy, which has been updated to include language regarding sustainability consistent with Public Act 101-0473. A motion was made by Trustee Mathieson and seconded by Trustee Wilson to adopt and execute the updated investment policy as presented and to direct L&A to file the investment policy with the Illinois Department of Insurance within 30 days of execution. Motion carried unanimously by voice vote. The Board rescheduled the August 20, 2020 meeting to August 27, 2020 at 5:00 p.m. Mary Tomanek left the meeting at 6:25 p.m. PUBLICE COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: February 20, 2020 Regular Meeting: The Board reviewed the February 20, 2020 regular meeting minutes. A motion was made by Trustee Craig and seconded by Trustee Wilson to approve February 20, 2020 regular meeting minutes as written. 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 three-month period ending March 31, 2020. As of March 31, 2020, the net position held in trust for pension benefits is $52,417,533.26 with a change in position of ($10,056,726.39). 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 January 1, 2020 through March 31, 2020 for total disbursements of $222,277.37. A motion was made by Trustee Wilson 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 $222,277.37. Motion carried by roll call vote. AYES: Trustees Mathieson, Craig, Wilson, Bayee and Smith NAYS: None ABSENT: None Additional Bills, if any: Illinois Department of Insurance Compliance Fee: The Board noted that the Illinois Department of Insurance Compliance Fee invoice will be issued. A motion was made by Trustee Mathieson and seconded by Trustee Wilson to approve payment of the IDOI Compliance Fee, upon receipt of the invoice. Motion carried by roll call vote. AYES: Trustees Mathieson, Craig, Smith, Bayee and Wilson NAYS: None ABSENT: None Wheaton Police Pension Fund Meeting Minutes – May 21, 2020 Page 3 of 4 COMMUNICATIONS AND REPORTS: Statements of Economic Interest: The Board was reminded that the statements of Economic Interest were due by May 1, 2020. TRUSTEE TRAINING UPDATES: The Board 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: There were no applications for membership or withdrawals from Fund. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Non-Duty Disability Benefit – Jacquelyn Johnson: The Board reviewed the regular retirement benefit calculation for Jacquelyn Johnson prepared by L&A. Detective Johnson had an entry date of December 29, 2014, disability date of February 28, 2020, effective date of pension of February 29, 2020, 28 years of age at date of retirement, 5 years of creditable service, applicable salary of $96,343.07, applicable pension percentage of 50%, amount of originally granted monthly pension of $4,014.30 and amount of originally granted annual pension of $48,171.60. A motion was made by Trustee Craig and seconded by Trustee Wilson to approve Jacquelyn Johnson’s non-duty disability benefit calculated by L&A. Motion carried by roll call vote. AYES: Trustees Mathieson, Craig, Smith, Bayee and Wilson NAYS: None ABSENT: None 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. NEW BUSINESS: Appointed Member Term Expiration – Brett Mathieson The Board noted that Trustee Mathieson’s term expired April 30, 2020 and reappointment will be requested. Discussion/Possible Action – Lauterbach & Amen, LLP Engagement Letter: The Board tabled this item until the next regular meeting. ATTORNEY’S REPORT – REIMER & DOBROVOLNY PC: Review/Approve Decision & Order for Jacquelyn Johnson: The Board reviewed the Decision and Order for Jacquelyn Johnson prepared by Attorney Reimer. A motion was made by Trustee Craig and seconded by Trustee Wilson to approve the Decision and Order for Jacquelyn Johnson as presented. Motion carried unanimously by voice vote. Annual Independent Medical Examination – Bradley Mann: The Board noted that correspondence from Attorney Reimer was sent to Mr. Mann to attend his annual independent medical examination. Further discussion will be held at 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. Wheaton Police Pension Fund Meeting Minutes – May 21, 2020 Page 4 of 4 ADJOURNMENT: A motion was made by Trustee Wilson and seconded by Trustee Craig to adjourn the meeting at 6:45 p.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for August 27, 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