HomeMy WebLinkAboutMinutes - 10/10/2023 - Police Pension BoardPolice Pension Board of Trustees
Meeting Minutes
October 10, 2023
Call to Order
The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 9:00
a.m. at McHenry City Hall, 333 S Green St, McHenry, IL.
Roll call:
Members present: President Jeffery Foerster, Sergeant Nick Clesen, Officer Robert Beaudoin. Absent:
Jim Schmidt, Thomas Settles. Others present: Monte Johnson, Carolyn Lynch, Stephanie Bay of
Lauterbach & Amen
Public Input:
No members of the public were present to offer comments.
Presentation of the Actuarial Valuation Report and Recommendation to Forward Levy Request to
McHenry City Council
Stephanie Bay was present from Lauterbach & Amen to present the actuarial report. The recommended
contribution for this year is $710,366, which is a 4.64% increase from last year. Some demographic
changes that affected the valuation were the hiring of four new members, which increased the
contribution by $20,400. One member was terminated, which increased the contribution by $12,200. 1
retiree passed away with an eligible surviving spouse, and two surviving spouses passed away during the
prior year. Thirty inactive members continued to collect benefits, which decreased the contribution by
$107,900.
There are currently four active members who are eligible for retirement, with an additional ten
members who will be eligible for retirement soon. Benefit payments are anticipated to increase 46% in
the next five years and 100% in the next ten years due to the age of the current employees. The ratio of
benefit payments to the Fair Value of Assets is 4.10%, compared to an Expected Rate on Return of
Investments of 7%. The recommended contribution increases steadily over the working career of an
employee, while the alternative is the PUC method, which has a slow bell curve shooting up closer to
retirement. Because of the population disbursement, and with half of the work force eligible to retire in
the next ten years, the cost is outweighing the intersection where the recommended and PUC are
different.
A motion was made by Sergeant Clesen and seconded by Officer Beaudoin to recommend forwarding to
the City Council the alternative contribution levy request of $710,366. Roll Call Vote: 3-ayes: Foerster,
Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion carried.
Approve the July 11, 2023 Regular Meeting Minutes
President Foerster requested to change the wording in the minutes regarding the disability pensions
from “doctor’s notes” to “doctor’s examinations”. A motion was made by Sergeant Clesen and seconded
by Officer Beaudoin to approve minutes from July 11, 2023, with the proposed change. Voice Vote: 3-
ayes: Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion carried.
Motion to Approve the Payment of Bills
A motion was made by Sergeant Clesen and seconded by Officer Beaudoin to approve the payment of
bills as presented. Voice Vote: 3-ayes: Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion
carried.
Authorize City Treasurer Carolyn Lynch to Transfer Funds as Needed
Treasurer Lynch explained that she needed to transfer $700,000 from IPOPIF to Illinois Funds to cover
expenses until the next Pension Board meeting. A motion was made by Sergeant Clesen and seconded
by Officer Beaudoin to authorize Treasurer Lynch to transfer $700,000 as requested. Voice Vote: 3-
ayes: Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion carried.
Approve the Treasurer’s Report
A motion was made by Sergeant Clesen and seconded by Officer Beaudoin to approve the Treasurer’s
Report as presented. Voice Vote: 3-ayes: Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles.
Motion carried.
Approve the 2024 Police Pension Board Schedule
It was discussed if a time change would make meetings more accommodating to each board member.
After discussion, it was decided to move all four meetings for next year to 8:30 a.m. A motion was made
by Sergeant Clesen and seconded by Officer Beaudoin to approve the 2024 Police Pension Board
schedule as presented with a time change to 8:30 a.m. Voice Vote: 3-ayes: Foerster, Clesen, Beaudoin.
2-absent: Schmidt, Settles. Motion carried.
Accept the Pension Applications of Stevan Barjaktarevic and Justin McCauley
Both new officers were hired on August 16, 223. A motion was made by Sergeant Clesen and seconded
by Officer Beaudoin to accept the pension applications of Stevan Barjaktarevic and Justin McCauley.
Voice Vote: 3-ayes: Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion carried.
Approve a three-year agreement with Lauterbach & Amen for Actuarial Services
A motion was made by Officer Beaudoin and seconded by Sergeant Clesen to approve the three-year
agreement for actuarial services with Lauterbach & Amen as presented. Voice Vote: 5-ayes: Foerster,
Clesen, Beaudoin, Settles, Schmidt. Motion carried.
Approve Proof of Life Letter to Pensioners
The Pension Board has an issue with pensioners passing away without the knowledge of the board.
Problems can arise when pension checks are still issued to a deceased person. Attorney Goodloe has
drafted a notice that will be sent to pensioners. There is a Proof of Life Affidavit that must be signed and
notarized and sent back to the Board. Failure to return the Proof of Life Affidavit will give the City the
power to withhold pension checks until received. A motion was made by Sergeant Clesen and seconded
by Officer Beaudoin to approve the use of the letter and affidavit as presented. Voice Vote: 3-ayes:
Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion carried.
Update on Mader Disability Pension
Officer Mader is in the process of applying for a disability pension. There are approximately 15 doctors
that need to return medical form letters that allow them to share documents with the Pension Board for
the disability pension. It appears that the hearing may be held in January or February. Officer Mader has
officially resigned and is now working as a full-time dispatcher for the City. Once doctor reports have
been received, the next steps will be set up for the disability pension process.
Motion to Adjourn
A motion was made by Sergeant Clesen and seconded by Officer Beaudoin to adjourn at 9:47 a.m. Voice
Vote: 3-ayes: Foerster, Clesen, Beaudoin. 2-absent: Schmidt, Settles. Motion carried.
______________________________
Monte Johnson, Recording Secretary