Police Pension Fund Board

WHEATON POLICE PENSION FUND 900 West Liberty Drive, Wheaton, Illinois | 630-260-2161 Brett Mathieson Don Wilson Angela Smith Tim Bayee Ben Belcaster President Vice President Secretary Trustee Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES MAY 17, 2023 A regular meeting of the Wheaton Police Pension Fund Board of Trustees was held on Wednesday, May 17, 2023 at 5:00 p.m. in 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 5:27 p.m. ROLL CALL: PRESENT: Trustees Brett Mathieson, Don Wilson, Angela Smith, Tim Bayee (arrived at 5:42 p.m.) and Ben Belcaster ABSENT: None ALSO PRESENT: Elizabeth Adelmann, Lauterbach & Amen, LLP (L&A); Ex Officio Treasurer Bob Lehnhardt, City of Wheaton PUBLIC COMMENT: There was no public comment. NEW BUSINESS: Certify Board Election Results – Active Member and Retired Member Positions: L&A conducted an election for the active member positions and the retired member position on the Wheaton Police Pension Fund Board of Trustees. Don Wilson ran unopposed for the retired member position and was reelected for a two-year term expiring May 13, 2025. For the active member election, the Board noted that 24 ballots were received, 19 ballots were counted with 5 ballots being spoiled. The active member election results are as follows: 18 votes for Angela Smith, 15 votes for Ben Belcaster, and 5 votes for Jerry Hampel. Angela Smith and Ben Belcaster were elected as the active members on the Board of Trustees for two-year terms expiring May 13, 2025. A motion was made by Trustee Smith and seconded by Trustee Wilson to certify the retired and active member election results. Motion carried unanimously by roll call vote. AYES: Trustees Mathieson, Wilson, Smith and Belcaster NAYS: None ABSENT: Trustee Bayee APPROVAL OF MEETING MINUTES: February 16, 2023 Regular Meeting: The Board reviewed the February 16, 2023 regular meeting minutes. A motion was made by Trustee Mathieson and seconded by Trustee Wilson to approve the February 16, 2023 regular meeting minutes as written. Motion carried unanimously by voice vote. INVESTMENT REPORT: Verus Advisory, Inc: The Board reviewed the Versus Advisory, Inc. Monthly Summary for the period ending March 31, 2023. As of March 31, 2023 the market value was $9,016,924,151 and the year-to-date net return for the Illinois Police Officers’ Pension Investment Fund (IPOPIF) is 4.3%. State Street Statements: The Board reviewed with the Board the State Street Bank statements prepared by the Illinois Police Officers’ Pension Investment Fund (IPOPIF) for the periods ending February 28, 2023 through March 31, 2023. As of March 31, 2023, the beginning value was $81,044,364.17 and the ending value was $85,476,847.40 and the month-to-date net return for the Fund was 1.39%. Trustee Mathieson left the meeting at 5:36 p.m. Wheaton Police Pension Fund Meeting Minutes – May 17, 2023 Page 2 of 4 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, 2023 prepared by L&A. As of March 31, 2023, the net position held in trust for pension benefits is $99,844,571.90 for a change in position of $2,377,738.47. 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, 2023 through March 31, 2023 for total disbursements of $5,775,254.13. A motion was made by Trustee Smith and seconded by Trustee Wilson to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Vendor Check Report in the amount of $5,775,254.13.. Motion carried by roll call vote. AYES: Trustees Wilson, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson and Bayee Additional Bills, if any: The Board reviewed the IPPFA invoice #410 for $550 for Trustee Belcaster’s Certified New Trustee Training registration fee. A motion was made by Trustee Smith and seconded by Trustee Wilson to approve the additional bill as presented. Motion carried by roll call vote. AYES: Trustees Wilson, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson and Bayee Trustee Bayee joined the meeting at 5:42 p.m. Illinois Department of Insurance Compliance Fee: The Board discussed the Illinois Department of Insurance Compliance Fee and determined that no action was necessary at this time. Discussion/Possible Action – Cash Management Policy: The Board discussed the cash reserves in the Illinois Funds and US Bank Money Market Accounts. A motion was made by Trustee Smith and seconded by Trustee Bayee to authorize Treasurer Lehnhardt to transfer $3,000,000 per month for the next four months, totaling $12,000,000. Motion carried by roll call vote. AYES: Trustees Wilson, Bayee, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson The Board discussed the Illinois Funds Money Market account balance. A motion was made by Trustee Bayee and seconded by Trustee Smith to set a minimum cash balance in the Illinois Funds account at $1,200,000 and a maximum balance at $2,000,000, with the cash exceeding $2,000,000 to be transferred to the BMO Harris Bank account to be transferred to IPOPIF for investment purposes. Motion carried by roll call vote. AYES: Trustees Wilson, Bayee, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: The Board noted that all 2022 Affidavits of Continued Eligibility have been received by L&A. The originals were provided to the Board for their recordkeeping. Statements of Economic Interest: The Board noted that Statements of Economic Interest were due on May 1, 2023. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Applications for Membership – Christopher Dempsey, Amy Green and Patrick Goddard-Ziga: The Board reviewed the Applications for Membership submitted by Christopher Dempsey, Amy Green and Patrick Goddard-Ziga. A motion was made by Trustee Belcaster and seconded by Trustee Smith to accept Christopher Dempsey, Wheaton Police Pension Fund Meeting Minutes – May 17, 2023 Page 3 of 4 Amy Green and Patrick Goddard-Ziga into the Wheaton Police Pension Fund effective March 22, 2023, as a Tier II participants. Motion carried by roll call vote. AYES: Trustees Wilson, Bayee, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson Deceased Surviving Spouse – Dolores Ward: The Board noted that surviving spouse Dolores Ward passed away on December 10, 2022 and her pension benefit has ceased. The Board also noted that L&A sent correspondence to Dolores Ward’s estate on February 23, 2023 requesting repayment of benefits from December 11, 2022 through January 31, 2023 in the amount of $4,061.97 but no response has been received to date. A motion was made by Trustee Smith and seconded by Trustee Wilson to direct L&A to send an additional correspondence via Certified Mail to Dolores Ward’s estate. Motion carried unanimously by voice vote. Further discussion will be held at the next regular meeting. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: There were no applications for retirement or disability benefits. 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 registration fees or reimbursable expenses presented for approval. IPOPIF: Discussion/Possible Action to be Taken on All IPOPIF Requests Pertaining to Consolidation: The Board noted that there was no discussion or action to be taken pertaining to consolidation. OLD BUSINESS: Transfer of Creditable Service from IMRF Pursuant to PA 102-0857 – Patricia Potter: The Board discussed Patricia Potter’s transfer of creditable service. A motion was made by Trustee Smith and seconded by Trustee Wilson to accept Patricia Potter’s transfer as paid in full in the amount $45,723.64 from IMRF to the Wheaton Police Pension Fund and to revise Patricia Potter’s hire date from June 23, 2003 to June 23, 2001. Motion carried by roll call vote. Voice vote. AYES: Trustees Wilson, Bayee, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson Military Buyback – James Craig: The Board noted that James Craig completed his military service purchase to transfer 24 months of military service to the Wheaton Police Pension Fund in the amount of $64,560.22. A motion was made by Trustee Belcaster and seconded by Trustee Wilson to accept the payment in the amount of $64.560.22, recognize the purchase as paid in full and acknowledge James Craig’s revised date of hire from December 27, 1999 to December 27, 1997. Motion carried by voice vote. AYES: Trustees Wilson, Bayee, Smith and Belcaster NAYS: None ABSENT: Trustee Mathieson Review/Approve – Updated Local Bank Account Collateralization Agreement: The Board noted that no action was necessary at this time. NEW BUSINESS (CONTINUED): Review Letter of Credit: The Board reviewed and acknowledged receipt of the Irrevocable Letter of Credit dated February 28, 2023 from FHL Bank of Chicago.