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Minutes - 04/21/2022 - Police Pension Fund BoardMINUTES OF A REGULAR MEETING OF THE OAK BROOK POLICE PENSION FUND BOARD OF TRUSTEES APRIL 21, 2022 A regular meeting of the Oak Brook Police Pension Fund Board of Trustees was held on Thursday, April 21, 2022 at 6:15 p.m. in the Upper-Level Conference Room at the Butler Government Center located at 1200 Oak Brook Road, Oak Brook, Illinois 60523, pursuant to notice. CALL TO ORDER: Trustee Torlo called the meeting to order at 6:16 p.m. ROLL CALL: PRESENT: Trustees Velia Torlo, Alan Feldman, Ed Caspers and Reid Foltyniewicz ABSENT: Trustee Hitesh Patel ALSO PRESENT: Phil Kosmala, Taiber Kosmala and Associates, LLC; Bruce Heniken, Fifth Third Investments; Molly Weslow, Kevin Cavanaugh (arrived at 6:27 p.m.) and Keith Schemm (arrived at 6:27 p.m.), Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: January 20, 2022 Regular Meeting: The Board reviewed the January 20, 2022 regular meeting minutes. A motion was made by Trustee Caspers and seconded by Trustee Folty to approve the January 20, 2022 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, 2022 prepared by L&A. As of March 31, 2022, the net position held in trust for pension benefits is $45,947,141.55 for a decrease of ($3,890,936.67). 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, 2022 through March 31, 2022 for total disbursements of $173,161.08. A motion was made by Trustee Feldman and seconded by Trustee Caspers to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Vendor Check Report in the amount of $173,161.08. Motion carried by roll call vote. AYES: Trustees Torlo, Feldman, Caspers and Foltyniewicz NAYS: None ABSENT: Trustee Patel 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 Caspers and seconded by Trustee Torlo to approve payment of the IDOI Compliance Fee, upon receipt of the invoice. Motion carried by roll call vote. AYES: Trustees Torlo, Feldman, Caspers and Foltyniewicz NAYS: None ABSENT: Trustee Patel Mr. Cavanaugh and Mr. Schemm arrived at 6:27 p.m. INVESTMENT REPORTS: Taiber Kosmala and Associates, LLC: Mr. Kosmala presented the Quarterly Investment Report for the period ending March 31, 2022. Mr. Kosmala reviewed the Overall Portfolio, Market Indexes, Bond Portfolio, Equities and Transaction Ledger. As of March 31, 2022, the quarter-to- Oak Brook Police Pension Fund Meeting Minutes – April 21, 2022 Page 2 of 4 date net return is (7.04%) for an ending market value $45,398,353. The current asset allocation is: 34.50% Large Cap; 11.21% Small Cap; 14.78% Equity; 33.77% Fixed Income; 3.19% Public Real Estate; and 2.55% Cash & Equivalents. A motion was made by Trustee Caspers and seconded by Trustee Torlo to accept the Quarterly Investment Report as presented. Motion carried unanimously by voice vote. Fifth Third Investments: Mr. Heniken presented the Investment Review for the period ending March 31, 2022. As of March 31, 2022, the quarter-to-date net return is (3.8%) with total earnings of ($527,060.69) for an ending market value of $13,098,705.19. The current asset allocation is: Fixed Income at 94.7% and Cash & Equivalents at 5.3%. The asset composition for the fixed income portfolio, reconciliation and holdings summaries and quarterly market insights were reviewed with the Board. A motion was made by Trustee Caspers and seconded by Trustee Torlo to accept the Investment Review as presented. Motion carried unanimously by voice vote. Review/Update Investment Policy: The Board discussed the Investment Policy and determined that no changes are required at this time. OLD BUSINESS: IPOPIF Status Update and Discussion/Possible Action to be Taken on All IPOPIF Requests Pertaining to Consolidation and Discussion/Adoption of Cash Management Policy: The Board noted that all items pertaining to consolidation will be tabled until the next regular meeting. NEW BUSINESS: Acknowledge IPOPIF Notice of Transfer, Adopt Resolution of Notice and Execute Exhibits, Discussion/Possible Action – Local Account Collateralization and Discussion/Possible Action – Cash Reserve Balance: The Board noted that all items pertaining to consolidation will be tabled until the next regular meeting. Review Preliminary Actuarial Valuation: The Board reviewed the preliminary Actuarial Valuation prepared by L&A. The final report will be reviewed by the Board at the next regular meeting. COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A informed the Board that third request Affidavits of Continued Eligibility were mailed to the outstanding pensioners via certified mail on March 9, 2022 and a due date of March 23, 2022. To date, one affidavit remains outstanding. The Board authorized L&A to send another request to the outstanding pensioner. Updates will be provided to the Board as they become available. Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest are due by May 1, 2022. Mr. Kosmala, Mr. Heniken, Mr. Cavanaugh and Mr. Schemm left the meeting at 7:18 p.m. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership – Jeremy Turner: The Board reviewed the Application for Membership submitted by Jeremy Turner. A motion was made by Trustee Foltyniewicz and seconded by Trustee Caspers to accept Jeremy Turner into the Oak Brook Police Pension Fund effective April 6, 2022, as a Tier II participant. Motion carried unanimously by voice vote. Contribution Refund – Ryan White: The Board reviewed the contribution refund request submitted by Ryan White. A motion was made by Trustee Foltyniewicz and seconded by Trustee Caspers to approve Ryan White’s contribution refund in the amount of $25,307.45 paid directly to himself issued on a date yet to be determined. Motion carried by voice vote. Oak Brook Police Pension Fund Meeting Minutes – April 21, 2022 Page 3 of 4 APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Regular Retirement Benefit – David Kolzow: The Board reviewed the regular retirement benefit calculation for David Kolzow prepared by L&A. Patrol Officer Kolzow had an entry date of September 5, 2000, retirement date of January 2, 2021, effective date of pension of March 17, 2021, 50 years of age at date of retirement, 20 years of creditable service, applicable salary of $108,290.42, applicable pension percentage of 50%, amount of originally granted monthly pension of $4,512.10 and amount of originally granted annual pension of $54,145.20. A motion was made by Trustee Caspers and seconded by Trustee Torlo to approve David Kolzow’s regular retirement benefit calculated by L&A. Motion carried by voice vote. Approve Regular Retirement Benefit – James Kruger: The Board reviewed the regular retirement benefit calculation for James Kruger prepared by L&A. Chief of Police Kruger had an entry date of July 7, 2006, retirement date of January 28, 2022, effective date of pension of January 29, 2022, 60 years of age at date of retirement, 15 years of creditable service, applicable salary of $173,450, applicable pension percentage of 37.5%, amount of originally granted monthly pension of $5,420.31 and amount of originally granted annual pension of $65,043.72. A motion was made by Trustee Feldman and seconded by Trustee Caspers to approve James Kruger’s regular retirement benefit calculated by L&A. Motion carried by voice vote. Approve Regular Retirement Benefit – Danny Ramirez: The Board reviewed the regular retirement benefit calculation for Danny Ramirez prepared by L&A. Sergeant Ramirez had an entry date of January 2, 1997, retirement date of March 18, 2022, effective date of pension of March 19, 2022, 50 years of age at date of retirement, 25 years of creditable service, applicable salary of $122,912, applicable pension percentage of 62.5%, amount of originally granted monthly pension of $6,401.67 and amount of originally granted annual pension of $76,820.04. A motion was made by Trustee Foltyniewicz and seconded by Trustee Caspers to approve Danny Ramirez’s regular retirement benefit calculated by L&A. Motion carried by voice vote. NEW BUSINESS (CONTINUED): Certify Board Election Results – Active and Retired Member Positions: L&A conducted an election for the active member positions on the Oak Brook Police Pension Fund Board of Trustees. The Board noted that 28 ballots were received and 27 ballots were counted with 1 ballot being spoiled. The active member election results are as follows: 21 votes for Velia Torlo, 27 votes for Reid Foltyniewicz and 5 votes for Paul Plinske. Velia Torlo and Reid Foltyniewicz were reelected as the active members on the Board of Trustees for two-year terms expiring May 14, 2024. L&A also conducted an election for the retired member position on the Oak Brook Police Pension Fund Board of Trustees. The Board noted that 35 ballots were received and 34 ballots were counted with 1 ballot being spoiled. The retired member election results are as follows: 25 votes for Edward Caspers and 9 votes for Steve Larson. Edward Caspers was reelected as the retired member on the Board of Trustees for a two-year term expiring May 14, 2024. A motion was made by Trustee Feldman and seconded by Trustee Caspers to certify the active and retired member election results. Motion carried unanimously by voice vote. The Board noted that Trustee Feldman will be resigning from the Oak Brook Police Pension Fund Board of Trustees effective immediately. The Board will request appointment of a Trustee from the Mayor of the Village of Oak Brook. Further discussion will be held at the next regular meeting. 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. Portability Update – Justin Pearce: The Board discussed Justin Pearce’s transfer of creditable service. A motion was made by Trustee Caspers and seconded by Trustee Foltyniewicz to accept Justin Pearce’s transfer as paid in full in the amount of $67,262.88 from the Hanover Park Police Pension Fund to the Oak Brook Police Pension Fund and to revise Justin Pearce’s hire date from October 30, 2016 to September 14, 2012. Motion carried unanimously by voice vote. Oak Brook Police Pension Fund Meeting Minutes – April 21, 2022 Page 4 of 4 Transfer of Creditable Service from IMRF Pursuant to HB-126 – Kurt Kaleciak: The Board noted that Kurt Kaleciak has submitted an application to combine service from IMRF pursuant to HB-126. Further discussion will be held at the next regular meeting. 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. ATTORNEY’S REPORT – REIMER DOBROVOLNY & LABARDI PC: Legal Updates: The Board was provided with the Reimer Dobrovolny & LaBardi PC Legal and Legislative Update newsletter for their review. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Feldman and seconded by Trustee Foltyniewicz to adjourn the meeting at 7:41 p.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for July 21, 2022 at 6:15 p.m. _______________________________________________ Board President or Secretary Minutes approved by the Board of Trustees on ___________________. Minutes prepared by Molly Weslow, Pension Services Administrator, Lauterbach & Amen, LLP