R-1924 - 01/12/2021 - RETIRED - Resolutions Supporting Documents RETIREMENT AGREEMENT
Jason P. Cates (hereinafter "Employee") and the Village of Oak Brook (hereinafter the
"Village") (each a "Party" and collectively the "Parties") voluntarily agree to the terms of this
Retirement Agreement and General Release("Agreement")to the fullest extent permitted by law,
as follows:
1. Retirement Date. Employee will retire from his position as Deputy Chief in the Village of
Oak Brook Police Department whereby such final date of employment with the Village
shall be January 19, 2021.
2. Pension Contribution. The Employer recognizes Employees desire to transfer 20 months
of military service prior to being hired by the Village pursuant to Section 4-108 of the
Illinois Pension Code (40 ILCS 5/4-108) to achieve 30 years of creditable service.
According to the calculation performed by Lauterbach & Amen, LLP, a certified public
accounting firm, in its December 14,2020 memorandum(attached hereto and incorporated
herein as Exhibit B), should Employee elect to transfer such military service the amount
due to the Oak Brook Police Pension Fund would total $79,911.52. As an incentive to
retire, Employer agrees to pay this amount on behalf of Employee in accordance with a
payment plan acceptable to the Pension Fund and detailed more clearly in the attached
Exhibit B.
3. Insurance Benefits. The Employer will continue Employee's health insurance coverage
(health, dental, and vision as calculated in Exhibit A which is attached hereto and
incorporated herein)provided as of the date of execution of this Agreement for six months
after his retirement date through July 31,2021. Starting on August 1, 2021, Employee will
be entitled to continue his health insurance coverage at his own expense in accordance with
the Consolidated Omnibus Budget Reconciliation Act("COBRA").
4. Release and Covenant Not to Sue.
a. Except as otherwise allowed by law, and except as set forth in this Agreement,
Employee, his heirs, executors, administrators, agents, representatives, attorneys,
assigns, and/or any other persons claiming through Employee(all of whom shall be
deemed included in the term "Employee" for purposes of this release and covenant
not to sue) agree to release and covenant not to sue the Village of Oak Brook its
elected officials and appointed officers regarding any claims he may have or might
have, whether known or unknown, as of the time Employee executes this
Agreement.
b. Employee agrees that this release and covenant not to sue includes all claims and
potential claims against the Village, its current, former or future commissioners,
board members, officers, members, representatives, trustees, administrators,
affiliates, fiduciaries, insurers, employees, attorneys, or agents, and any affiliated
or related entities or persons, including but not limited to partners,joint venturers,
any group risk pools or associations, and as intended third-party beneficiaries,their
predecessors, successors, heirs and assigns, and their past, present and future
commissioners, board members, officers, members, agents, attorneys, employees,
representatives, trustees, administrators, affiliates, fiduciaries and insurers, and
related entities, jointly and severally, in their individual, official, fiduciary and
corporate capacities.
c. Nothing in this Release and covenant not to sue restricts Employee's rights or the
rights of the Village to enforce the terms of this Agreement and the promises set
forth herein.
5. Applicable Law. This Agreement shall be interpreted and enforced in accordance with the
laws of the State of Illinois.
6. Neutral Construction. The language of all parts of this Agreement shall in all cases be
construed as a whole, according to their fair meaning, and not strictly for or against any of
the Parties, regardless of who drafted the Agreement.
7. Amendment. This Agreement may be amended only by a written document signed by
Employee and the Village.
8. Severability. In the event that any of the provisions of this Agreement are found by a judicial
or other tribunal to be unenforceable, the remaining provisions of this Agreement will
remain enforceable.
9. Right to Counsel. Each Party acknowledges that they were informed that they have the
right to consult with an attorney before signing this Agreement. Additionally, Employee
acknowledges that he has had an opportunity to and did negotiate over the terms of this
Agreement.
10. Counterparts, Place of Execution. This Agreement may be executed in counterparts, each
of which (upon execution of a counterpart by each Party), individually or taken together,
shall constitute a single integrated Agreement. This Agreement shall be deemed to have
been executed and entered into in DuPage County, Illinois.
PLEASE READ CAREFULLY. THIS DOCUMENT INCLUDES A RELEASE OF ALL
KNOWN AND UNKNOWN CLAIMS BY ALL PARTIES TO THE FULLEST EXTENT
PERMITTED BY LAW.
JASON P. CATES VILL E OF O BROO
By:
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Its: PA
Date: 20 Z
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EXHIBIT A
Health $1,606.63 per month
Dental $13.10 per month
Vision $123.82 per month
TOTAL $1,743.55 x 6 months= $10,461.30
EXHIBIT B
Purchase of Military Service
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December 14, 2020
Jason P. Cates
15860 Weathevane Way
Plainfield, Illinois 60544
RE: Purchase of Military Service
Dear Jason Cates:
We have received your request to calculate the amount due from you to the Oak Brook Police Pension Fund
should you elect to transfer 20 months of your military service prior to being hired, under Public Act 095-1056.
Pursuant to statute you must pay the Oak Brook Police Pension Fund:
• the contributions(employee and municipal)that would have been made into the Pension Fund if the 20
months of service had been originally with the Pension Fund (using your date-of-hire salary);
• plus interest on this amount, compounded annually from your date of hire to the payment date.
Utilizing the information provided and contribution rates(as determined by statute and by the actuarial reports for the
Pension Fund)we have calculated the following for your consideration:
• Balance Due: $79,911.52 by January 19,2021.
Additional interest may be accrued if not paid in full by January 19, 2021
• Remittance of payment(s)should be made payable to: Oak Brook Police Pension Fund
• Mail to my attention at: Oak Brook Police Pension Fund
c/o Lauterbach &Amen, LLP
668 N. River Road
Naperville, Illinois 60563
Please note that this purchase must be paid in full while you are still an active member of the Pension Fund
for the service to be considered pensionable.
Please complete the enclosed Election Form and forward a copy to the Oak Brook Police Pension Fund to accept or
decline the purchase of military service. if accepted by the Pension Fund, payment can be made in a lump sum or as
installments, using either personal funds or funds rolled-over from another Qualified Plan (such as a 457 or other
deferred plan). Please do not hesitate to contact me at jdoogan@lauterbachamen.com or our Benefits liotline toll-
free at 866.952.6329 with any questions you should have.
Cordially,
Jessica Doogan
Lauterbach & Amen, LLP
Enclosure
CC: Oak Brook Police Pension Fund
Election to Purchase
Military Service Served Prior to Employment
Article 3 Police Pension Fund
Pension Fund Name: Oak Brook Police Pension Fund
Member Name: Jason P. Cates
PLEASE SELECT THE APPROPRIATE RESPONSE
DECLINE
1 have received and reviewed the calculation performed by Lauterbach & Amen, LLP in response to my
request to purchase military service served prior to employment. I have decided not to pursue this purchase of
creditable service and at this time I withdraw my request.
Member Signature: Date:
ACCEPT
have received and reviewed the calculation performed by Lauterbach & Amen, LLP in response to my
request to purchase military service served prior to my employment. I am submitting this form to the Oak Brook
Police Pension Fund as my official notice that I wish to pursue the purchase of creditable service as outlined in
the attached calculation.
In accordance to the Pension Fund and provided calculation, I understand the timing of payments and payment
process shall be up to the member however not all of these options may be offered by the Pension Fund. Having
discussed the payment options with the Oak Brook Police Pension Fund, I have elected to pay the balance due as
follows: /
A) V Lump Sum $79,911.52 due by January 19,2021.
Payment can be made using personal funds or funds rolled-over from another Qualified Plan(such as a
457 or other deferred plan).
B) Payroll Deduction
1 will provide the payroll department the Authorization to Deduct Additional Pension Contributions form
requesting an after-tax deduction be withheld from my paychecks. This money will be remitted to the
Pension Fund by the municipality. I understand additional interest may accrue on any unpaid balance.
C) Direct Payments to the Pension Fund
I respectfully request to make installment payments directly to the Pension Fund. I understand additional
interest may accrue on any unpaid balance.
Proposed Payment Amount$ Payment Frequency
Payments will begin on
Member Signature Date: t�
Trustee Name: G�— �o Trustee Title: �,t' 5, ,mac r✓
Trustee Signature: Date: Z 49; o.:;2 0
Election to Purchase
Military Service Served Prior to Employment
Article 3 Police Pension Fund
Oak Brook Police Pension Fund
Jason P.Cates
A. Service to Purchase Total Service Months 20
From 011081,9/
To 09'07/92
11. Salary as of Date of Hire with Article 3 Police Pension Fund $29,832.00 Date of Hire: 09/08/92
Potential Revised Date of Hire. 01/08191
C.Contribution Calculation
Total Normal Cost as a%of Payroll for Fiscal Year(from Actuarially Determined Tax Levy Report)
Fiscal Year Ending Total Normal Cost%
12/31/91 23.290%
12/31/92 23.850%
Member&
Salary Earned as of Date of District/Municipality
Earnings Period Hire with Article 3 Police Contributions(Salary x
Fiscal Year End Pension Fund Total Normal Cost Normal Cost%)
12/31/91 29,259.88 23.290% 6,814.63
12/31/92 20,514.61 23.850% 4,892.73
Total Contribution Amount 11,707.36
D. Interest Calculation
Interest Period From date of hire to date of repayment
Rate 7.0%for FYE 1986 through 2010
Formula [(Contribution Amount)x ((1+Interest Rate)^(Interest Period))]
Date of payment 01/19/21
Interest Period 09/08/92 to 01/19/21
28.3881 years
Interest Calculation 68,204.16
E.Total Amount Due from Member
Contribution(C) 11,707.36
Plus Interest(D) 68,204.16
Total Amount Due $79,911.52 as of 01/19/21