HomeMy WebLinkAboutPacket - 1/10/2023 - Police Pension Board
POLICE PENSION BOARD OF TRUSTEES
Tuesday, January 10, 2023
McHenry City Hall, Public Conference Room
333 S Green St, McHenry, IL 60050
9:00 AM
AGENDA
1. Call to Order
2. Roll Call
3. Public Input
4. Approve the October 11, 2022 Regular Meeting Minutes and the October 18, 2022 Special
Meeting Minutes
5. Report of Investments and Accounts:
a. Presentation and motion to approve the Treasurer’s Report
6. New Business:
a. Approve Pension Increases
b. Discussion and possible motion to approve an update to the pension policy with
amendments performed by Board Attorney Laura Goodloe
c. Approve pension applicaton of Ryan Sciame
d. Review Election procedures
e. Transfer of $500,000 from investments for expected expenses
7. Unfinished Business:
a. Motion to approve the payment of bills
b. Public Pension Trustee Training Update
8. Semi-Annual Review of Executive Session Minutes
9. Additional Items for Discussion
10. Adjournment
aI A ► I I A
LU I I L
Pension Trustee Certification
s
All elected and appointed Article 3 (Police) and Article 4 (Firefighters) local pension
board trustees are required to participate in state -mandated trustee certification training
that consists of at least 16 hours in their first year as a trustee. In addition, trustees must
complete a minimum of eight hours of continuing trustee education annually thereafter.
The Illinois Municipal League provides
this certification training at no charge to all trustees.
More information is available at iml.org/pensiontrustees.
This training is provided online and in accordance with statutory requirements.
in
partnership
with
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E�sTERN
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UNIVERSITYr
If you have questions regarding Article 3 or Article 4 pension trustee certification,
please contact us by email at pensiontrustees@iml.org.
All elected and appointed Article 3 (Police) and Article 4 (Firefighters) local pension board trustees are
required to participate in state -mandated trustee certification training.
WHAT IS THE FIRST YEAR CERTIFICATION REQUIREMENT?
The trustee certification training requirement for a first year trustee is at least 16 hours.
WHAT IS THE ANNUAL CERTIFICATION REQUIREMENT?
Annually, all trustees must complete a minimum of eight hours of continuing trustee education.
WHERE CAN TRUSTEES RECEIVE THEIR TRAINING?
The Illinois Municipal League provides this certification training at no charge to all trustees.
More information is available at iml.org/pensiontrustees.
Trustee certification training is provided online and in accordance with all statutory
requirements. If you have questions regarding pension trustee certification, please
contact us by email at pensiontrustees@iml.org.
HOW MUCN DOES THE TRAINING COST?
$0. The Illinois Municipal League provides this certification training at no charge. Really — it's free = no charge.
WHAT ARE SOME TRUSTEE EDUCATION TOPICS?
• Articles 3 and 4 Pension Disability Pension Overview
• Duties and Ethical Obligations of a Pension Fund Fiduciary
• Board Oversight of Cyber Risk: Before a Breach
• Illinois Public Employee Disability Act and Public Safety Employee Benefits Act
• Developments and Potential Changes in Federal and Illinois Labor and Employment Laws
• Qualified Domestic Relations Order
• Pension Plan Funding 101
• Pension Plan Assumptions 101
• Freedom of Information Act and Open Meetings Act
• Cyber Security Best Practices
• Managing Generational Differences and Unconscious Bias in the Workplace
• How to Identify, Address and Prevent Sexual Harassment and Discrimination , ■
• Let Me Ask You a Question
��% E�sTERN ILLINOIS UNIVERSITY in artnershi with
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500 East Capitol Avenue I P.O. Box 5180 1 Springfield, IL 62705-5180 1 Ph: 217.525.1220 1 Fx: 217.525.7438 1 iml.org
10
ILlIN01S MUNICIPAL REVIEW I JANUARY 2023
JANUARY 2023 I ILLINOIS MUNICIPAL REVIEW 11
PART 5 - ELECTION OF PENSION BOARD TRUSTEES
501.1 Election of Board Trustees.
a) The election of the two Pension Board trustees chosen by the active
participants and the Pension Board trustee chosen by the beneficiaries shall
be held biennially. The election shall be held on the 3rd Monday in April
of each election year.
Cross-reference: 40 ILCS 5/3-128
501.2 Term of Office.
a) The term of office of each elected Pension Board trustee shall be two
years. The term of office of each elected Pension Board trustee shall begin
on the 2nd Tuesday of the Month of May, following the election.
Cross-reference: 40 ILCS 5/3-128
501.3 General Election Procedure.
a) All elections will be supervised by the two trustees who are appointed
by the Municipality.
b) All contested elections will be conducted under the Australian ballot
system, which means voting by secret ballot.
c) All elections will be conducted by mail. However, the Pension Board,
by a majority vote of the trustees, may hold elections in any other manner
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that is consistent with the Pension Code. Elections that are not conducted
by mail will be held at a convenient place within the municipality as
determined by a majority vote of the trustees.
Cross-reference: 40 ILCS 5/3-128
502.1 Eligibility to Serve as a Trustee.
a) All active police officers who are members and participants of the
Pension Fund are eligible to run for the office of Pension Board trustee
representing the active Pension Fund participants.
b) All beneficiaries of legal age are eligible to run for the office of
Pension Board trustee representing the beneficiary members.
Cross-reference: 40 ILCS 5/3-128
502.2 Nomination and VotingRights.
a) For each nomination and for any election, no person shall be entitled to
cast more than one ballot.
b) At any election, each active participant shall be entitled to nominate
two (2) persons for the office of pension board trustee representing the
active members.
c) At any election, each beneficiary of legal voting age shall be entitled to
nominate one (1) person for the office of pension board trustee on behalf of
the beneficiary members.
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d) A pension board participant or beneficiary may nominate himself or
herself for the office of pension board trustee.
Cross-reference: 40 ILCS 5/3-128
502.3 Mailing Lists.
a) The Pension Board shall maintain a mailing list of all active
participants and all beneficiaries of legal voting age, with current addresses,
which will be utilized in the nomination and election of pension board
trustees.
503.1 Nomination Procedure.
a) On or before March 1st of any election year, the Pension Board shall
mail a Notice of Election and Request for Nominations to each participant
and beneficiary who is eligible to vote. The notice shall advise each
eligible voter of the upcoming election and instruct each active participant
that he or she may nominate two candidates for trustee;
b) The notice shall specify that all nominations must be post-marked or
received by the Pension Board no later than March 21st. Nominations
either received or post-marked after March 21 st will be invalid;
c) All nominations will be initialed by a supervising trustee, with the date
and time of receipt noted on the nomination ballot;
d) All participants or beneficiaries who are nominated in accordance with
29
paragraph (c) above, will have his or her name placed on the election ballot.
503.2 Elections by Acclamation.
a) In the event that only two active participants are nominated for pension
board trustee in any given election year, or only one beneficiary is
nominated in any given election year, the persons so nominated may be
elected by acclamation.
503.3 Contested Elections.
a) In any election where three or more persons are nominated for the
position of Pension Board trustee representing the participants or in any
election where two or more persons are nominated for the position of
Pension Board trustee representing the beneficiaries, the following
procedure shall apply:
1) A ballot with the names of all active participants nominated for
trustee will be mailed to each active participant who is eligible to
vote on or before April 1 st of any election year. A ballot with the
names of'all beneficiaries nominated for`trustee will be mailed to
each beneficiary of legal voting age on or before April 1st of any
election year.
2) Each ballot packet shall contain a voting instruction sheet, a
signature card identifying the voter, a self-addressed return envelope
30
and the ballot itself. The instruction sheet shall advise the voter the
appropriate method to mark the ballot and to return the ballot in the
self-addressed envelope along with the signed signature card.
3) The instruction sheet shall specify that all ballots must be post-
marked or received by the Pension Board no later than the 3rd
Monday in April. All ballots post-marked or received after the 3rd
Monday in April shall be invalid and will not be counted in any
election.
4) All ballots not accompanied by 'a signed signature card shall be
invalid and will not be counted in'any election.
5) All ballots will be initialed by a supervising trustee, with the date
and time of receipt noted on the ballot envelope.
Cross-reference: 40 ILCS 5/3-128
503.4 Runoff Elections.
a) In case--of ties, a runoff election shall be held on the third Monday in
May. The Perision' 8'oard shall'`fol'low the'procedure outlined in §503.3
above in all runoff elections. '
b) If any runoff election erO in a iie, the'e' lection winner will be decided
by a coin-to S's'officiated by'an'appointed trustee.
31
i
503.5 Special Elections.
a) Upon the death, resignation or inability to act of any elected trustee, his
art 17 t r•.. ,
or her successor shall be elected for the unexpired term of such trustee, at a
special election called by the Pension Board.
b) Any special election will follow the nomination and election
procedures set forth in §503.1 through §503.3 above.
Cross-reference: 40 ILCS 5/3-128
504.1 Election Results.
a) The results of all elections for pension board trustee shall be posted in
the same manner that other notices are posted.
Cross-reference: 40 ILCS 5/3-128
32
Police Pension Board of Trustees
Special Meeting Minutes
October 18, 2022
Call to Order
The special meeting of the City of McHenry Police Pension Board of Trustees was called to order at 8:30
a.m. at McHenry City Hall, 333 S Green St, McHenry, IL.
Roll call:
Members present: President Jeffery Foerster, Sergeant Nick Clesen, Cheryl Kranz, Officer Robert
Beaudoin, Thomas Settles. Others present: Monte Johnson, Carolyn Lynch, Kevin Cavanaugh of
Lauterbach & Amen
Public Input:
No members of the public were present to offer comments.
Transfer of $500,000 from Illinois Funds to checking to cover expenses through January 10, 2023
A motion was made by Cheryl Kranz and seconded by Thomas Settles to approve the transfer of
$500,000 from Illinois Funds to checking to cover expenses through January 10, 2023. Roll Call Vote: 5-
ayes: Jeff Foerster, Sergeant Clesen, Cheryl Kranz, Officer Beaudoin, Thomas Settles. Motion carried.
Presentation of Actuarial Valuation Report and recommendation to forward Pension Fund Tax Levy
request to McHenry City Council
Kevin Cavanaugh was present from Lauterbach & Amen to present this year’s actuarial valuation report.
Last year’s recommended contribution was $625,600, and this year’s recommended contribution is
$620,960, for a decrease of 0.74%. He explained that this was a difficult investment year, but the five
year average helps spread it out. The pension fund is over 100% funded again this year. Funds were at
104%, and we are at 98.43% market value due to the bad investment year.
For our fund we are at a unique position because we are 100% funded. We do not need to make a
payment for the unfunded liability. This year is also unusual because the statutory contribution is
actually higher than the recommended contribution. The rate of return for the past year was -6.21%,
and we expect to have 7%. All twelve of the presentation slides were reviewed and questions were
answered from the Commission.
A motion was made by Thomas Settles and seconded by Officer Beaudoin to request the alternative
contribution of $671,455 to the McHenry City Council. Roll Call Vote: 5-ayes: Jeff Foerster, Sergeant
Clesen, Cheryl Kranz, Officer Beaudoin, Thomas Settles. Motion carried.
Motion to Adjourn
A motion was made by Sergeant Clesen and seconded by Thomas Settles to adjourn at 8:55 a.m. Roll Call
Vote: 5-ayes: Jeff Foerster, Sergeant Clesen, Cheryl Kranz, Officer Beaudoin, Thomas Settles. Motion
carried.
______________________________
Monte Johnson, Recording Secretary
Police Pension Board of Trustees
Regular Meeting Minutes
October 11, 2022
Call to Order
The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 9:06
a.m. at McHenry City Hall, 333 S Green St, McHenry, IL.
Roll call:
Members present: President Jeffery Foerster, Sergeant Nick Clesen, Cheryl Kranz Members absent:
Officer Robert Beaudoin, Thomas Settles. Others present: Monte Johnson, Carolyn Lynch.
Public Input:
No members of the public were present to offer comments.
Approve the July 19, 2022, meeting minutes
A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to approve the minutes from July
19, 2022. Roll Call Vote: 3-ayes: Jeff Foerster, Sergeant Clesen, Cheryl Kranz. 2-absent: Officer
Beaudoin, Thomas Settles. Motion carried.
Presentation and motion to approve the Treasurer’s Report
It was reported by President Foerster that we will not find out our numbers until later this month. The
funds transferred on September 1, 2022, and there is no treasurer’s report to vote on or approve.
Semi-annual review of Police Pension Fund Investment Policy
There was discussion if we still needed a policy or if it needed changed since all of the investments are
now with the IPPFA. We will check with the Pension Board’s attorney to see if anything needs to be
done with the policy.
Approval of the 2022 Police Pension board schedule
The schedule calls for 9:00 a.m. meetings on January 10, April 11, July 11, and October 10, all of 2023.
No members had issues with any of the stated dates. A motion was made by Cheryl Kranz and seconded
by Sergeant Clesen to approve the 2022 Police Pension board schedule as presented. Roll Call Vote: 3-
ayes: Jeff Foerster, Sergeant Clesen, Cheryl Kranz. 2-absent: Officer Beaudoin, Thomas Settles. Motion
carried.
Approve the payment of bills
Jeff Foerster listed the three bills that we have received that need paid. Those bills come from the IPPFA
membership dues, the advisory CD for Jim Schmidt through the end of August, and the work on the
fiduciary liability policy. A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to
approve the payment of bills as presented. Roll Call Vote: 3-ayes: Jeff Foerster, Sergeant Clesen, Cheryl
Kranz. 2-absent: Officer Beaudoin, Thomas Settles. Motion carried.
Approve the submission of the Enterprise Cash Flow Module and MyStateStreet.com Access Form
Jeff Foerster explained that this form states who can access the funds in the IPPFA. It was suggested that
Carolyn and Sergeant Clesen be the two with access since Sergeant Clesen is present in the building
during working hours. A motion was made by Cheryl Kranz and seconded by Sergeant Clesen to approve
having Carolyn Lynch and Sergeant Clesen be the two individuals with access to the IPPFA funds. Roll
Call Vote: 3-ayes: Jeff Foerster, Sergeant Clesen, Cheryl Kranz. 2-absent: Officer Beaudoin, Thomas
Settles. Motion carried.
Presentation of Actuarial Valuation Report and recommendation to forward Pension Fund Tax Levy
request to McHenry City Council
Nobody from Lauterbach & Amen was present for the meeting to give the presentation. After a phone
call to the firm, and with discussion from the Board, it was decided to hold a special meeting on
Tuesday, October 18th, at 8:30 a.m. for the presentation.
Motion to Adjourn
A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to adjourn at 9:42 a.m. Roll Call
Vote: 3-ayes: Jeff Foerster, Sergeant Clesen, Cheryl Kranz. 2-absent: Officer Beaudoin, Thomas Settles.
Motion carried.
______________________________
Monte Johnson, Recording Secretary
City of McHenry
Police Pension Board of Trustees
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-5014
Fax: (815) 363-2149
mjohnson@cityofmchenry.og
2023 Notice of Election
Request for Nominations
City of McHenry Police Pension Fund
Board of Trustees
To: All Retired Members and Beneficiaries of the McHenry Police Pension Fund
The Board is now accepting nominations for retired members or their
beneficiaries of legal age, interested in serving as a Trustee on the McHenry Police
Pension Board. The position is a two-year term effective on the second Tuesday in
May, (May 9, 2023). The Police Pension Board meets on the second Tuesday in
January, April, July and October, at 9:00 a.m. in the McHenry Municipal Center.
Instructions: All beneficiaries of legal age are eligible. If you are interested in
serving on the Police Pension Board or would like to nominate someone who is
eligible, please mail your ballot in the enclosed self-addressed envelope or deliver
it to the McHenry City Clerk’s Office.
For each nomination and for any election, no person shall be entitled to cast more
than one ballot. Each beneficiary of legal voting age shall be entitled to nominate
one (1) person for the office representing the beneficiary members.
All nominations must be received or post-marked no later than March 21, 2023.
Nominations received or post-marked after this date will be invalid.
____________________________________
Nominee
City of McHenry
Police Pension Board of Trustees
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-5014
Fax: (815) 363-2149
mjohnson@cityofmchenry.org
2023 Notice of Election
Request for Nominations
For (2) Active Members
Police Pension Board of Trustees
The Board is now accepting nominations for two (2) eligible officers who are
interested in serving on the Police Pension Board of Trustees. The office is a two-year
term effective on the second Tuesday in May, (May 9, 2023). The Police Pension
Board meets on the second Tuesday in January, April, July, and October at 9:00 a.m.
in the McHenry Municipal Center.
Instructions: All active police officers who are members and participants of the
McHenry Pension Fund are eligible to run for the office representing the active Pension
Fund participants. If you are interested in serving as Trustee or would like to nominate
someone who is eligible, please write the name of your nominee(s) in the space
provided below and mail or deliver it to the Police Records Department.
At any election, each active participant may nominate two (2) candidates for each open
trustee position. For each nomination and for any election, no person shall be entitled
to cast more than one ballot.
All nominations must be either received or post-marked no later than March 21, 2023.
Nominations either received or post-marked after this date will be invalid.
A list of nominees will be posted on April 1, 2023, in the Police Department
and on the Municipal Center Public Notice Board.
________________________________
Nominee
________________________________
Nominee
The following Pensioners will receive an increase in their monthly pension payment in January, 2023:
1/1/22
monthly
pension
monthly
increase
1/1/23
monthly
pension
New Annual
Pension
Thomas Beyer 8,275.46 248.26 8,523.72 102,284.64
William Brogan 9,092.61 272.78 9,365.39 112,384.68
Kevin Cox 5,568.18 5,568.18 66,818.16
George Erkenswick 5,797.50 173.93 5,971.43 71,657.16
Jeffery Foerster 8,188.15 245.64 8,433.79 101,205.48
Ramon Gregorio 4,295.31 74.92 4,370.23 52,442.76
Todd Intravartolo 5,850.07 175.50 6,025.57 72,306.84
Thomas Jenkins 8,239.60 247.19 8,486.79 101,841.48
John Jones 8,422.22 252.67 8,674.89 104,098.68
Patrick Joyce 9,226.51 276.80 9,503.31 114,039.72
Doyle Kearns 5,494.57 116.08 5,610.65 67,327.80
Daniel Kinnerk 6,911.97 207.36 7,119.33 85,431.96
Daniel Kreassig 6,543.01 196.29 6,739.30 80,871.60
Patricia Laycock 3,942.21 75.33 4,017.54 48,210.48
Kathleen Leonard 4,772.32 143.17 4,915.49 58,985.88
Richard Meier 5,161.56 154.85 5,316.41 63,796.92
Anthony Militano 4,566.23 136.99 4,703.22 56,438.64
James Molnar 5,553.20 166.60 5,719.80 68,637.60
Anthony Mucciante 5,035.99 151.08 5,187.07 62,244.84
Edward O'Donnell 4,519.88 135.60 4,655.48 55,865.76
Michael Oliver 4,346.90 77.16 4,424.06 53,088.72
Thomas O'Meara 9,720.96 291.63 10,012.59 120,151.08
Roger Pechous 9,014.97 270.45 9,285.42 111,425.04
David Porter 4,702.25 141.07 4,843.32 58,119.84
Gary Wigman 9,228.56 276.86 9,505.42 114,065.04
Roland Wood 6,514.89 195.45 6,710.34 80,524.08
‐ 0.00
Kevin Cox 5,568.18 564.26 6,132.44 73,589.28 1st Inc 6/1/23