Police Pension Board

Regular Meeting

Glen Ellyn, IL · October 10, 2024

Minutes

Village of Glen Ellyn Minutes Village of Glen Ellyn Police Pension Board Meeting Special Meeting October 10, 2024 4:30 PM Glen Ellyn Civic Center, Galligan Board Room Board or Police Pension Date: October 10, 2024 Commission: Meeting: Special Called to 4:30 p.m. Order: Quorum: Yes Adjourned: 4:46 p.m. MEMBER ATTENDANCE: Jim Monson President Present John Adduci Trustee Present William Housey Jr. Trustee Present James King Trustee Present Anthony Terranova Trustee Present Also Present: Patrick Brankin Finance Director Elisa Pollina Recording Secretary Richard Lamb Lauterbach & Amen Brian Labardi Police Pension Board Attorney Public: A. CALL TO ORDER The October 10, 2024 meeting of the Police Pension Board was called to order by President Monson at 4:30 pm at the Glen Ellyn Civic Center, Galligan Board Room. B. PUBLIC COMMENT – None C. APPROVAL OF MINUTES FROM JULY 17, 2024 MEETING MOTION TO APPROVE MINUTES FROM JULY 17, 2024 POLICE PENSION BOARD MEETING MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL Police Pension 2 October 10, 2024 D. Accountant’s Report 1. Lauterbach and Amen present the monthly financial report: Richard Lamb from Lauterbach and Amen presents the financial report for the month ending August 31, 2024, to the Police Pension Board. Statement of Net Position as of August 31, 2024: •Total Assets: $41,738,307.26 •Net Position held in trust for Pension Benefits: $41,735,407.26 •Total Contributions: $1,818,778.84 •Total Additions: $5,607,627.33 •Total Deductions: $2,141,444.08 •Change in Position: $3,466,183.25 •Total Expenses - $251,317.93 Trustee Terranova motioned to accept the monthly financial report as presented; Trustee King seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: James King, Trustee AYES: Adduci, Terranova, Housey, King, Monson 2. Presentation and approval of bills as listed in the monthly financial report – The Police Pension Board reviews the quarterly disbursements. Trustee Terranova motioned to approve the disbursements totaling $17,555.07 as outlined in the Quarterly Disbursement report; Trustee King seconded the motion. MOTION TO APPROVE QUARTERLY DISBURSEMENTS IN THE AMOUNT OF $17,555.07 MOTION BY: Anthony Terranova, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL AYES – Adduci, Terranova, Housey, Monson, King 3. Additional Bills & Cash Management Policy – The Police Pension reviews the cash management policy. Richard Lamb reminded the Police Pension Board of the current minimum and maximum parameters set at $15,000 and $20,000. He suggested increasing the monthly withdrawals by 3% for 2025. Finance Director Brankin clarified that a decision on the proposed change is not required at this time. Attorney Labardi added that the current monthly withdrawal schedule is only valid through the end of the year, so a new decision will need to be made in January 2025. Police Pension 3 October 10, 2024 President Monson motioned to continue the current monthly payments of $63,636 until the first-quarter meeting, at which time the Police Pension Board will reassess the policy. Trustee Terranova seconded the motion. MOTION TO CONTINUE THE CURRENT MONTHLY PAYMENTS OF $63,636 UNTIL THE FIRST-QUARTER MEETING, AT WHICH TIME THE POLICE PENSION BOARD WILL REASSESS THE POLICY MOTION BY James Monson, President SECONDED BY: Anthony Terranova, Trustee RESULT: UNANIMOUS APPROVAL AYES - Adduci, Terranova, Housey, Monson, King A E. Investment Report 1. IPOPIF Versus Advisory Inc. – The Police Pension Board reviewed the performance report from IPOPIF, noting that the market value of the fund stands at $41,656,917.27, reflecting a 5.9% increase. F. Communication and Reports 1. Affidavits of Continued Eligibility – Richard Lamb confirmed that all affidavits have been sent out, completed, and copies have been received. G. Trustee Training Updates 1. Approval of Trustee Training Registration Fees and Reimbursable Expenses – Richard Lamb reminds the Police Pension Board members to sign up for their training. H. Approval of Membership / Withdrawals from Fund - None I. APPLICATIONS FOR RETIREMENT / DISABILITY BENEFITS - None J. OLD BUSINESS 1. Portability Update – Caitlin Tabor – No response received; item will be tabled until next month. 2. Portability Update – Kevin Lombard – The Police Pension Board reviewed the portability transfer. Trustee Adduci motioned to revise Kevin Lombard’s hire date to October 17, 2019, noting he is paid in full. Trustee Terranova seconded the motion. MOTION TO REVISE KEVIN LOMBARD’S HIRE DATE TO OCTOBER 17, 2019 MOTION BY: John Adduci, Trustee SECONDED BY: Anthony Terranova, Trustee RESULT: UNANIMOUS APPROVAL AYES - Terranova, Housey, Monson, King, Adduci A Police Pension 4 October 10, 2024 3. Review/Adopt Municipal Compliance Report – The Police Pension reviews the MCR report noting the recommended 2024 municipal contribution. Trustee Housey motioned to approve the recommended municipal contribution in the amount of $2,762.669; Trustee Adduci seconded the motion. MOTION TO APPROVE THE RECOMMENDED MUNICIPAL CONTRIBUTION IN THE AMOUNT OF $2,762.669 MOTION BY: William Housey, Trustee SECONDED BY: John Adduci, Trustee RESULT: UNANIMOUS APPROVAL AYES - Adduci, Terranova, Housey, Monson, King A K. NEW BUSINESS 1. Establish 2025 Board Meeting Dates – The Police Pension Board reviewed and approved the 2025 meeting schedule, with meetings to be held on the third Wednesday of each quarter at 4:30 p.m. The dates are January 15, April 16, July 16, and October 15. L. ATTORNEY’S REPORT 1. Annual Independent Medical Examinations –Thomas Hartzell and Raymond Munch – Trustee Adduci motioned to initiate Thomas Hartzell and Raymond Munch annual evaluations; Trustee King seconded the motion. MOTION TO INITIATE THOMAS HARTZELL AND RAYMOND MUNCH ANNUAL EVALUATIONS MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL AYES - Adduci, Terranova, Housey, Monson, King A M. Public Hearing on Thomas Roman Benefit Issue (See transcribed record for details). N. Motion to Adjourn to closed executive session for the purpose of considering the evidence produced at the public hearing, provided that a written decision setting forth the Police Pension Board’s determinative reasoning is issued thereafter, pursuant to 5 ILCS 120/2 (c) (4) – Trustee Adduci motioned to adjourn to closed executive session and Trustee King seconded the motion. The open session adjourned at 4:46 p.m. for purposes of deliberation. MOTION TO ADJOURN TO CLOSED EXECUTIVE SESSION FOR THE PURPOSE OF CONSIDERING THE EVIDENCE PRODUCED AT THE PUBLIC HEARING, PROVIDED THAT A WRITTEN DECISION SETTING FORTH THE POLICE PENSION BOARD’S DETERMINATIVE REASONING IS ISSUED THEREAFTER PURSUANT TO 5 ILCS 120/2 © (4). MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL AYES: Housey, Terranova, Monson, Adduci, King Police Pension 5 October 10, 2024 O. Return to Open Session to Adopt Decision on Thomas Roman Benefit Issue– Trustee Terranova motioned to return to open session and Trustee King seconded the motion. Trustee Adduci motioned to reduce Mary Roman's monthly benefit by 4.42 percent, and pay that amount to Thomas Roman until the overpayment amount of $12,186.18 is repaid commencing with the January 2025 payroll; Trustee Housey seconded the motion. MOTION TO REDUCE MARY ROMAN'S MONTHLY BENEFIT BY 4.42 PERCENT, AND PAY THAT AMOUNT TO THOMAS ROMAN UNTIL THE OVERPAYMENT AMOUNT OF $12,186.18 IS REPAID COMMENCING WITH THE JANUARY 2025 PAYROLL MOTION BY: John Adduci, Trustee SECONDED BY: William Housey, Trustee RESULT: UNANIMOUS APPROVAL AYES: Housey, Terranova, Monson, King, Adduci P. Motion to Authorize Preparation of the Court Reporter Transcript Trustee Adduci motioned to authorize preparation of the court reporter transcript; Trustee King seconded the motion. MOTION TO AUTHORIZE PREPARATION OF THE COURT REPORTER TRANSCRIPT MOTION BY: John Adduci, Trustee SECONDED BY: James King, Trustee RESULT: UNANIMOUS APPROVAL AYES: Housey, Terranova, Monson, King, Adduci Q. ADJOURNMENT – Trustee Housey motioned to adjourn the meeting; Trustee Terranova seconded the motion. Submitted by Elisa Pollina, Recording Secretary Reviewed by Finance Director Brankin 1 1 BEFORE THE BOARD OF TRUSTEES OF THE 2 GLEN ELLYN POLICE PENSION FUND 3 4 IN THE MATTER OF THE ) 5 OVERPAYMENT OF: ) 6 ) 7 MARY ROMAN, ) 8 ALTERNATE PAYEE, ) 9 10 11 REPORT OF PROCEEDINGS had at the hearing 12 of the above-entitled cause before Glen Ellyn Police 13 Pension Fund, commencing on Thursday, October 10, 14 2024, at 4:30 p.m., at 535 Duane Street, Glen Ellyn, 15 Illinois. 16 17 18 19 20 21 22 REPORTED BY: LINDA A. WALICZEK, C.S.R. 23 CERTIFICATE NO. 84-3865. 24 SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 2 1 APPEARANCES: 2 REIMER DOBROVOLNY & LABARDI PC 3 BY: MR. BRIAN J. LABARDI 4 15 Spinning Wheel Road 5 Suite 310 6 Hinsdale, IL 60521 7 (630) 654-9547 8 blabardi@rdlaborlawpc.com 9 Appeared on behalf of the Village of 10 Glen Ellyn; 11 12 LAW OFFICES OF LOFGREN & WENTWORTH, P.C. 13 BY: MR. RICHARD J. LOFGREN 14 536 Crescent Blvd. 15 Suite 200 16 Glen Ellyn, IL 60137 17 (630) 469-7100 18 rlofgren@elrlaw.com 19 Appeared on behalf of the Alternate Payee. 20 21 BOARD MEMBERS: Mr. Jim Monson, President 22 Mr. Tony Terranova, Trustee Mr. John Adduci, Trustee 23 Mr. William Housey, Trustee Mr. James King, Trustee 24 * * * SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 3 1 I N D E X 2 3 EXHIBITS MARKED FOR IDENTIFICATION PAGE: 4 5 Board Exhibit A-F 6 6 Board Exhibit G-I 7 7 8 9 10 EXHIBITS RECEIVED INTO EVIDENCE 11 Board Exhibit A-F 6 12 Board Exhibit G-I 8 13 14 15 16 17 18 19 20 21 22 23 24 SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 4 1 MR. LABARDI: Let's go on the record in the 2 matter of the hearing for the QIDRO for Roman before 3 the Glen Ellyn Police Pension Fund. 4 Mr. President, do you want to call 5 the roll and establish a quorum, please? 6 PRESIDENT MONSON: Yes. 7 Jim King? 8 TRUSTEE KING: Here. 9 PRESIDENT MONSON: John Adduci? 10 TRUSTEE ADDUCI: Here. 11 PRESIDENT MONSON: Tony Terranova? 12 TRUSTEE TERRANOVA: Here. 13 PRESIDENT MONSON: William Housey? 14 TRUSTEE HOUSEY: Here. 15 MR. LABARDI: Counsel, would you like -- 16 PRESIDENT MONSON: Jim Monson, here. 17 MR. LABARDI: -- to identify yourself for the 18 record as well, please? 19 MR. LOFGREN: Yes. Good evening. My name is 20 Richard Lofgren. I'm here today for Mary Roman, who 21 is sitting to my left. 22 MS. ROMAN: Hi. 23 MR. LABARDI: The record should indicate, as 24 we'll admit in the exhibits, Tom Roman was given SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 5 1 notice of the hearing today. I did speak with him 2 last week. He is not here, so I assume he's not 3 showing up. 4 The first motion I would suggest the 5 board to make would be a motion to appoint me as the 6 hearing officer. What that means is I'll preside 7 over the hearing. I'll rule on any objections or 8 evidentiary matters. I may ask some questions, but 9 I'm not here to act as an advocate for one side or 10 the other. If you go into a closed session, I'll 11 certainly attend your closed session. 12 Counsel, do you have any objection to 13 me serving as the hearing officer? 14 MR. LOFGREN: No objection. 15 MR. LABARDI: Anybody want to make that motion? 16 TRUSTEE ADDUCI: Motion for Brian Labardi to 17 serve as the hearing officer. 18 TRUSTEE KING: Second. 19 MR. LABARDI: Roll call on that, please. 20 TRUSTEE HOUSEY: Housey, aye. 21 TRUSTEE TERRANOVA: Terranova, aye. 22 PRESIDENT MONSON: Monson, aye. 23 TRUSTEE KING: King, aye. 24 TRUSTEE ADDUCI: Adduci, aye. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 6 1 MR. LABARDI: I forgot one thing. This is a 2 public meeting just like your regular meeting was, 3 so we did have to ask if there is any public 4 comment? 5 (No response.) 6 MR. LABARDI: Hearing none, fair enough. 7 We've previously provided to both 8 parties what I had marked as Board Exhibits A 9 through F. 10 (WHEREUPON, certain documents were 11 marked Board Exhibits A-F, for 12 identification, as of 10/10/2024.) 13 MR. LABARDI: I know, Counsel, you had a chance 14 to thumb through those before the hearing. 15 Do have any objections to admission 16 of Board Exhibits A through F? 17 MR. LOFGREN: I'd stipulate to their admission. 18 MR. LABARDI: The record should reflect 19 Board Exhibits A through F are admitted without 20 objection. 21 (WHEREUPON, said documents, 22 previously marked Board Exhibits A-F, 23 for identification were offered and 24 received in evidence.) SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 7 1 MR. LABARDI: In addition to A through F, I 2 have a couple of procedural exhibits that I've 3 labeled Board Exhibits G, H, and I just for the 4 record. 5 And I'll give you copies of this in a 6 second, Counsel. 7 (WHEREUPON, certain documents were 8 marked Board Exhibits G, H, & I, for 9 identification, as of 10/10/2024.) 10 MR. LABARDI: Board Exhibit H is the notice of 11 hearing for today's date. 12 Board Exhibit I is an e-mail from 13 your law partner, Charles Wentworth, indicating that 14 he's representing Mary Roman. 15 Board Exhibit G is various 16 correspondence to both Mary Roman and Tom Roman 17 discussing changing hearing dates, etc. 18 I believe that's all. I'll give you 19 copies of those, and then I'll ask whether you have 20 any objection to introduction of G, H, and I. 21 MR. LOFGREN: Stipulate to their admission. 22 23 24 SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 8 1 MR. LABARDI: The record should reflect Board 2 Exhibits G, H, and I are also admitted. 3 (WHEREUPON, said documents, 4 previously marked Board Exhibit G, H, 5 & I, for identification were offered 6 and received in evidence.) 7 MR. LABARDI: I have copies of those for the 8 board if anybody wants to see them; but as I just 9 described, they're really just correspondence 10 matters. 11 Counsel, you know why we're here. I 12 always give anyone an opportunity to make an 13 opening statement if you'd like, be my guest, or 14 waive, whatever you prefer. 15 OPENING STATEMENT 16 ON BEHALF OF THE ALTERNATE PAYEE 17 MR. LOFGREN: My client, Mary Roman, was 18 divorced years ago from her husband, Tom. For the 19 last nine years she was receiving pension payments 20 from the pension fund. 21 Apparently, the pension fund had an 22 error in its calculations as to her monthly payments 23 that she was to receive. It's my understanding that 24 that error has since been corrected, and that SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 9 1 overpayment was of $125 a month, and that 2 overpayment has ceased by the pension board's 3 actions. 4 We're here today to talk about how 5 much Mary's going to be required by the board to pay 6 back the fund. Simply put, under the relevant 7 statute, I think Mr. LaBardi and I would agree, the 8 relevant state deals with the QIDRO situation where 9 a spouse through a divorce action gets an award 10 through the divorce, and that involves assignment of 11 pension payments. 12 That particular section of the code 13 gives -- tells this board that they have to go out 14 and recoup overpayments if there's a mistake. We 15 understand that. We don't dispute that. We 16 certainly don't dispute that there's been a 17 recalculation of what her payments should be. We 18 acknowledge that should be done and has to be 19 done. 20 The question now becomes is this 21 board -- and I'm sure your counsel will advise you, 22 you have what's called a fiduciary duty to protect 23 the assets of the fund, and that is why the statute 24 charges you with the obligation to try to correct SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 10 1 your mistakes. Go back and get the money you 2 mistakenly gave someone else incorrectly. 3 We don't dispute that you have that 4 obligation, and you need to discharge that 5 obligation. The particular section of the statute, 6 however, that we're looking at essentially makes 7 reference to another section of the Pension Code, 8 Article 3, which essentially says in these 9 situations, the board when it's deciding on how much 10 to seek back has a limit of up to 10 percent of the 11 actual pension payment that's being made. 12 The most important thing that I want 13 to emphasize is the statute says up to 10 percent. 14 In this case, Mary's payments are roughly $2,700 a 15 month, so 10 percent roughly -- in our case is 16 actually $274 would be 10 percent. 17 This board is not obligated to do 18 10 percent. You have the ability or the discretion 19 to decide what's appropriate for purposes of these 20 particular circumstances for purposes of 21 fulfilling your obligation to get the money back and 22 to see that those monies are given to, in this case, 23 Tom. 24 As I mentioned, this is not Mary's SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 11 1 mistake. Mary's retired. She has two sources of 2 income right now. She has a Social Security of 3 $1,300 a month, and she has this pension payment. 4 The reversal of the mistake of $125 has already 5 blown a hole in her budget, but she has to live with 6 it, and she will. She has no problem with it. 7 Whatever amount of money up to 10 percent of her 8 $2,700 monthly payment you require her to pay back 9 on a monthly basis will make that hole even larger. 10 She's going to have to figure out ways in which to 11 make things work with less money. 12 We're going to ask the board to 13 exercise its discretion when it's exercising its 14 duty to recoup the money to ask Mary or require Mary 15 to pay back on the same scale that she received the 16 money. 17 She had overpayments of $125 a 18 month. That's roughly, by my calculations, a little 19 less than 5 percent of her payment. So it's kind of 20 between the zero and the 10 percent, which is your 21 range. 22 We would ask that the board take into 23 consideration that this is not Mary's fault. Mary's 24 not objecting that, yeah, I was overpaid. I didn't SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 12 1 know about it. I understand you have to get the 2 money back, and she'll go along with it; but she's 3 just asking, and I'm asking, the board just take 4 into consideration that she's on a fixed income. 5 This has blown a hole in her budget that she's going 6 to have to deal with. 7 She wants to work with the board to 8 fulfill its duty and get the money to the rightful 9 owner, and she merely is going to ask simply take 10 the money out of her monthly payments at $125 a 11 month the same way that you gave it to her. 12 Because she didn't get -- I think in 13 this case there's like $12,000 in total payments 14 that were made. It was made over nine years. She 15 doesn't have $12,000 that she can just give to you, 16 and she didn't get it all at one time. She got it 17 unbeknownst to her. You guys were giving her money 18 for nine years that now you're putting her in a 19 bind. 20 All that being said, Mary says, I'm 21 going to do the right thing, but she's just asking 22 please be fair. Take into consideration her 23 circumstances. 24 At the end of this hearing, I'm SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 13 1 simply going to ask if the board could find it to 2 enter an order where the repayment or the recoupment 3 amount on a monthly basis is $125. 4 Again, as I said, that's roughly 5 between 4 and 5 percent of what her monthly payment 6 is. 7 Thank you. 8 MR. LABARDI: Thank you, Counsel. 9 Before we get into any potential 10 additional evidence or testimony. I have brief 11 ground rules I'll lay out. 12 This is a hearing being conducted 13 pursuant to Article 1 and Article 3 of the Pension 14 Code to determine the amount of any potential 15 overpayment to alternate payee Mary Roman, 16 pursuant to the QIDRO entered in the party's divorce 17 matter. 18 Mr. and Mrs. Roman were previously 19 sent a notice of hearing advising them of the 20 proceedings on this date and advising them of the 21 right to be represented by legal counsel, to present 22 evidence, and to respond to any evidence before the 23 board of trustees of the Glen Ellyn Police Pension 24 Fund. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 14 1 Ms. Roman, do you acknowledge receipt 2 of the notice of hearing, and you're ready to 3 proceed? 4 MS. ROMAN: Yes. 5 MR. LABARDI: The procedures to be utilized in 6 this case are as follows: 7 During the hearing, the parties or 8 their attorneys may make an opening statement. 9 You've already done that. 10 The parties may present any evidence, 11 including testimony and documentation, in support of 12 of their claim. 13 The board or its legal counsel may 14 ask any questions. 15 Rulings on any legal matters will be 16 made by the hearing officer. 17 In the event the hearing can't be 18 completed on this date, the matter will be continued 19 from time to time to dates agreeable to all parties 20 until it's completed. 21 The technical and the formal rules of 22 evidence and the Rules of Civil Procedure do not 23 apply; however, rules of fundamental fairness, such 24 as the hearsay rule do apply. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 15 1 At the conclusion of the hearing, the 2 parties my either file a post-hearing brief to 3 include the post-finding of facts and conclusions of 4 law or make a closing argument or both. 5 And finally, the board will render a 6 written decision that will become the final decision 7 as to the matter in this case. 8 Counsel, do you have any questions 9 about those procedures before we go forward? 10 MR. LOFGREN: No, I do not. 11 MR. LABARDI: Counsel, do you have any 12 witnesses or documentation you'd like to submit into 13 evidence other than what's been tendered by the 14 board. 15 MR. LOFGREN: Counsel, I'm happy to put 16 Ms. Roman on to testify to what I've already stated, 17 but I don't want to waste your time because there's 18 nothing new that she's going to say that hasn't 19 already been said. 20 I would -- for trying to move this 21 along, I understand the amount of money is -- 22 Counsel, if you could give me the exact figure? I 23 think it's twelve-thousand and something? 24 MR. LABARDI: Yes. So if you'd like, maybe the SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 16 1 easiest thing to do is ask whether -- and if you 2 want to swear your client, and she testifies, that's 3 fine; or if you have the authority to stipulate to 4 it, that's fine. Whatever you prefer. 5 MR. LOFGREN: I have the authority to 6 stipulate. I just need to have the exact dollar 7 amount. 8 MR. LABARDI: Fair enough. 9 Based on the documents that have been 10 admitted, it appears, based on the board's 11 accountants, that the total amount of overpayment to 12 your client was $12,186.18. 13 MR. LOFGREN: We'll stipulate. 14 MR. LABARDI: Fair enough. 15 The only other question that I have, 16 which you can ask your client about if you need to, 17 or whatever, Exhibit A of the board's exhibits is 18 the QIDRO that was entered March of 2005. It's 19 marked as amended QIDRO. We have a certified copy 20 of it. 21 I don't know if there was any 22 sort of a subsequent QIDRO entered subsequent to the 23 one from 2005, but that's the only one the board 24 has. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 17 1 MR. LOFGREN: We'll stipulate to that as being 2 the affective QIDRO. 3 MR. LABARDI: Fair enough. 4 The only other question that we might 5 need your client's input on is if we look at the 6 board's exhibits with the calculations, they end in 7 October of '23, which means it doesn't have the 8 current benefit amount. But since they had a 9 regular meeting today, we have the payroll journal 10 from last month from August of 2024, which would 11 indicate the monthly benefit to your client is, in 12 gross, $2,826.62. 13 Does that sound accurate? 14 MS. ROMAN: As far as I -- yeah. 15 MR. LOFGREN: Generally speaking, it's my 16 understanding that prior to the adjustment on the 17 overpayment, the payments were $2,869; and then 18 after it had been reduced $125 a month, the payment 19 was reduced down $2,744. 20 MR. LABARDI: Correct. The discrepancy, the 21 increase that I just threw off might be because she 22 does get a proportional share of the COLA increases, 23 which occur in January. 24 MR. LOFGREN: There we go. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 18 1 MR. LABARDI: My guess is that the $2,800 2 amount that I just read off is as a result of the 3 January COLA increase. 4 MR. LOFGREN: We'll stipulate to that amount. 5 MR. LABARDI: Fair enough. 6 So then your request is that the 7 board set a repayment amount of no more than 8 $125? 9 MR. LOFGREN: That is correct. 10 MR. LABARDI: Linda, go off the record for a 11 minute while I do math. 12 (WHEREUPON, a discussion was had off 13 the record.) 14 MR. LABARDI: Let's go back on the record. 15 The record should reflect that 16 someone in the room, who's better at math than 17 Brian, has indicated that the $125 ask would be 18 4.42 percent. 19 Fair enough. The board will make a 20 decision ultimately, obviously; but, Counsel, I just 21 want to suggest that my suggestion to the board will 22 be we set a percentage as opposed to a specific 23 dollar amount because, as I just indicated, those 24 amounts increase every January, so I don't want to SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 19 1 have a fluctuation in terms of the percentage in as 2 much as the statute deals with percentage. 3 MR. LOFGREN: I would ask for a percentage 4 repayment at 4.42. 5 MR. LABARDI: Fair enough. 6 Counsel, you've indicated you have no 7 witnesses and no additional evidence, correct? 8 MR. LOFGREN: That's correct. 9 MR. LABARDI: Do you want to make a closing 10 statement? 11 MR. LOFGREN: I wish not to bore you further. 12 Thank you. 13 MR. LABARDI: Ms. Roman rests? 14 MR. LOFGREN: We rest. 15 MR. LABARDI: Gentlemen, you're introduced to 16 all the evidence we've heard from counsel. We can 17 discuss in open session and take a vote, or we can 18 go into closed session to discuss, and then come 19 out. We can get additional evidence if you 20 think or witnesses if you think that would be 21 helpful. 22 What's the board's pleasure? 23 TRUSTEE ADDUCI: I would move that we go into 24 closed session. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 20 1 MR. LABARDI: It sounds like there's a motion 2 to go into closed session pursuant to Section 2(c)4 3 of the Open Meetings Act to discuss evidence and 4 testimony presented in an open hearing. 5 Anybody want to move that? 6 TRUSTEE ADDUCI: I move. 7 TRUSTEE TERRANOVA: Second. 8 MR. LABARDI: Roll call, please. 9 TRUSTEE HOUSEY: Housey, aye. 10 TRUSTEE TERRANOVA: Terranova, aye. 11 PRESIDENT MONSON: Monson, aye. 12 TRUSTEE KING: King, aye. 13 TRUSTEE ADDUCI: Adduci, aye? 14 MR. LABARDI: Counsel, give us a minute if you 15 don't mind. 16 (WHEREUPON, all members outside of 17 the board and Mr. LaBardi left the 18 meeting.) 19 (WHEREUPON, proceedings were had in 20 closed session outside the hearing of 21 the public which were transcribed 22 under separate seal.) 23 24 SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 21 1 (WHEREUPON, all parties have 2 re-entered the hearing proceedings 3 and the following proceedings were 4 held with all parties present.) 5 MR. LABARDI: Let's go back on the record in 6 the administrative hearing for the Roman QIDRO 7 matter. 8 The board has met in closed session. 9 No final determination was made in closed session. 10 The session was both transcribed and recorded in 11 accordance with the Open Meetings Act. 12 The first motion we need is a motion 13 to adjourn the closed session. 14 TRUSTEE TERRANOVA: I'll make the motion to 15 adjourn the closed session. 16 TRUSTEE KING: Second. 17 TRUSTEE HOUSEY: Housey, aye. 18 TRUSTEE TERRANOVA: Terranova, aye. 19 PRESIDENT MONSON: Monson, aye. 20 TRUSTEE KING: King, aye. 21 TRUSTEE ADDUCI: Adduci, aye. 22 MR. LABARDI: Just in the interest of full 23 disclosure, Counsel, this isn't in the record as 24 evidence, but in light of the 4.42 percent request, SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 22 1 I called the funds' payroll administrator to make 2 sure they can deal with that decimal point, and they 3 said they could. 4 I just wanted to make sure on that 5 before we decided on something. 6 MR. LOFGREN: Thank you. 7 MR. LABARDI: Having heard discussion in closed 8 session, does anyone want to make a motion to reduce 9 Mary Roman's monthly benefit by 4.42 percent, and 10 pay that amount to Tom Roman until the overpayment 11 amount of $12,186.18 is repaid commencing with the 12 January 2025 payroll? 13 TRUSTEE ADDUCI: I make a motion that we -- 14 commencing with the January 2025 payroll, we make a 15 deduction to Mary Roman in order to pay to Thomas 16 Roman of 4.42 percent of her benefit commencing 17 January 2025 until the payment of $12,186.18 is 18 repaid. 19 TRUSTEE HOUSEY: Second. 20 MR. LABARDI: Counsel, do you have any 21 questions on that motion before we vote? 22 MR. LOFGREN: No, sir. 23 MR. LABARDI: Any discussion? 24 (No response.) SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 23 1 MR. LABARDI: If not, a roll call, please. 2 TRUSTEE HOUSEY: Housey, aye. 3 TRUSTEE TERRANOVA: Terranova, aye. 4 PRESIDENT MONSON: Monson, aye. 5 TRUSTEE KING: King, aye. 6 TRUSTEE ADDUCI: Adduci, aye. 7 MR. LABARDI: That's passed. 8 Again, Counsel, obviously that number 9 will go above or fluctuate from the $125 a month 10 because of the COLA increase, but that will be 11 effective with the January 2025 payroll. We'll let 12 the payroll administrators know. 13 I'll do a written decision and order 14 that will eventually get served on you when it's 15 done, probably not until the Board's January 16 meeting, but that's it. 17 Do you have anything else for the 18 board? 19 MR. LOFGREN: Thank you. 20 MS. ROMAN: Thank you. 21 MR. LOFGREN: Appreciate it. 22 MR. LABARDI: If there's no other business, we 23 just need a motion to authorize preparation of the 24 court reporter transcript, please. SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Mary Roman 24 1 TRUSTEE ADDUCI: Motion to authorize 2 preparation of the court reporter transcript. 3 TRUSTEE KING: Second. 4 MR. LABARDI: Roll call, please. 5 TRUSTEE HOUSEY: Housey, aye. 6 TRUSTEE TERRANOVA: Terranova, aye. 7 PRESIDENT MONSON: Monson, aye. 8 TRUSTEE KING: King, aye. 9 TRUSTEE ADDUCI: Adduci, aye. 10 MR. LABARDI: And then a motion to adjourn. 11 TRUSTEE HOUSEY: Motion to adjourn. 12 TRUSTEE TERRANOVA: Second. 13 MR. LABARDI: All in favor? 14 (All responding aye.) 15 (Which were all the proceedings 16 had in the above-entitled cause 17 on this date.) 18 19 20 21 22 23 24 SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 25 1 STATE OF ILLINOIS ) 2 ) SS: 3 COUNTY OF WILL ) 4 I, LINDA A. WALICZEK, a Certified 5 Shorthand Reporter of the State of Illinois, do 6 hereby certify that I reported in shorthand the 7 proceedings had at the hearing aforesaid, and that 8 the foregoing is a true, complete and correct 9 transcript of the proceedings of said hearing as 10 appears from my stenographic notes so taken and 11 transcribed under my personal direction. 12 IN WITNESS WHEREOF, I do hereunto set my 13 hand at Chicago, Illinois, this 25th day of 14 October, 2024. 15 16 17 Certified Shorthand Reporter 18 19 C.S.R. Certificate No. 84-3865. 20 21 22 23 24 SCHELLI REPORTING SERVICE, LTD. (312) 558-1113 Glen Ellyn Police Pension Fund Mary Roman Overpayment Matter October 10, 2024 adjustment (1) 9:23 6:7;7:16;15:4; COLA (3) $ 17:16 assignment (1) 21:10 17:22;18:3;23:10 administrative (1) 9:10 Brian (2) commencing (3) $1,300 (1) 21:6 assume (1) 5:16;18:17 22:11,14,16 11:3 administrator (1) 5:2 brief (2) comment (1) $12,000 (2) 22:1 attend (1) 13:10;15:2 6:4 12:13,15 administrators (1) 5:11 budget (2) completed (2) $12,186.18 (3) 23:12 attorneys (1) 11:5;12:5 14:18,20 16:12;22:11,17 admission (3) 14:8 business (1) conclusion (1) $125 (9) 6:15,17;7:21 August (1) 23:22 15:1 9:1;11:4,17;12:10; admit (1) 17:10 conclusions (1) 13:3;17:18;18:8,17; 4:24 authority (2) C 15:3 23:9 admitted (3) 16:3,5 conducted (1) $2,700 (2) 6:19;8:2;16:10 authorize (2) calculations (3) 13:12 10:14;11:8 advise (1) 23:23;24:1 8:22;11:18;17:6 consideration (3) $2,744 (1) 9:21 award (1) call (5) 11:23;12:4,22 17:19 advising (2) 9:9 4:4;5:19;20:8; continued (1) $2,800 (1) 13:19,20 aye (26) 23:1;24:4 14:18 18:1 advocate (1) 5:20,21,22,23,24; called (2) copies (3) $2,826.62 (1) 5:9 20:9,10,11,12,13; 9:22;22:1 7:5,19;8:7 17:12 A-F (2) 21:17,18,19,20,21; can (6) copy (1) $2,869 (1) 6:11,22 23:2,3,4,5,6;24:5,6,7, 12:15;16:16;19:16, 16:19 17:17 affective (1) 8,9,14 17,19;22:2 corrected (1) $274 (1) 17:2 case (6) 8:24 10:16 Again (2) B 10:14,15,22;12:13; correspondence (2) 13:4;23:8 14:6;15:7 7:16;8:9 A ago (1) back (9) cause (1) Counsel (20) 8:18 9:6;10:1,10,21; 24:16 4:15;5:12;6:13; ability (1) agree (1) 11:8,15;12:2;18:14; ceased (1) 7:6;8:11;9:21;13:8, 10:18 9:7 21:5 9:2 21;14:13;15:8,11,15, above (1) agreeable (1) Based (2) certain (2) 22;18:20;19:6,16; 23:9 14:19 16:9,10 6:10;7:7 20:14;21:23;22:20; above-entitled (1) along (2) basis (2) certainly (2) 23:8 24:16 12:2;15:21 11:9;13:3 5:11;9:16 couple (1) accordance (1) ALTERNATE (2) become (1) certified (1) 7:2 21:11 8:16;13:15 15:6 16:19 court (2) accountants (1) always (1) becomes (1) chance (1) 23:24;24:2 16:11 8:12 9:20 6:13 current (1) accurate (1) amended (1) BEHALF (1) changing (1) 17:8 17:13 16:19 8:16 7:17 acknowledge (2) amount (13) benefit (4) charges (1) D 9:18;14:1 11:7;13:3,14; 17:8,11;22:9,16 9:24 act (3) 15:21;16:7,11;17:8; better (1) Charles (1) date (4) 5:9;20:3;21:11 18:2,4,7,23;22:10,11 18:16 7:13 7:11;13:20;14:18; action (1) amounts (1) bind (1) circumstances (2) 24:17 9:9 18:24 12:19 10:20;12:23 dates (2) actions (1) Apparently (1) blown (2) Civil (1) 7:17;14:19 9:3 8:21 11:5;12:5 14:22 deal (2) actual (1) appears (1) board (35) claim (1) 12:6;22:2 10:11 16:10 5:5;6:8,11,16,19, 14:12 deals (2) actually (1) apply (2) 22;7:3,8,10,12,15; client (5) 9:8;19:2 10:16 14:23,24 8:1,4,8;9:5,13,21; 8:17;16:2,12,16; decide (1) addition (1) appoint (1) 10:9,17;11:12,22; 17:11 10:19 7:1 5:5 12:3,7;13:1,23; client's (1) decided (1) additional (3) Appreciate (1) 14:13;15:5,14;16:23; 17:5 22:5 13:10;19:7,19 23:21 18:7,19,21;20:17; closed (11) deciding (1) Adduci (17) appropriate (1) 21:8;23:18 5:10,11;19:18,24; 10:9 4:9,10;5:16,24,24; 10:19 board's (6) 20:2,20;21:8,9,13,15; decimal (1) 19:23;20:6,13,13; argument (1) 9:2;16:10,17;17:6; 22:7 22:2 21:21,21;22:13;23:6, 15:4 19:22;23:15 closing (2) decision (4) 6;24:1,9,9 Article (3) bore (1) 15:4;19:9 15:6,6;18:20;23:13 adjourn (4) 10:8;13:13,13 19:11 code (3) deduction (1) 21:13,15;24:10,11 assets (1) both (4) 9:12;10:7;13:14 22:15 Min-U-Script® Schelli Reporting Service, Ltd. (1) $1,300 - deduction (312) 558-1113 Glen Ellyn Police Pension Fund Mary Roman Overpayment Matter October 10, 2024 described (1) enter (1) 15:6;21:9 ground (1) 18:17,23;19:6 8:9 13:2 finally (1) 13:11 indicating (1) determination (1) entered (3) 15:5 guess (1) 7:13 21:9 13:16;16:18,22 find (1) 18:1 input (1) determine (1) error (2) 13:1 guest (1) 17:5 13:14 8:22,24 fine (2) 8:13 interest (1) discharge (1) essentially (2) 16:3,4 guys (1) 21:22 10:4 10:6,8 first (2) 12:17 into (9) disclosure (1) establish (1) 5:4;21:12 5:10;11:22;12:4, 21:23 4:5 fixed (1) H 22;13:9;15:12;19:18, discrepancy (1) etc (1) 12:4 23;20:2 17:20 7:17 fluctuate (1) happy (1) introduced (1) discretion (2) even (1) 23:9 15:15 19:15 10:18;11:13 11:9 fluctuation (1) heard (2) introduction (1) discuss (3) evening (1) 19:1 19:16;22:7 7:20 19:17,18;20:3 4:19 following (1) hearing (22) involves (1) discussing (1) event (1) 21:3 4:2;5:1,6,7,13,17; 9:10 7:17 14:17 follows (1) 6:6,14;7:11,17; discussion (3) eventually (1) 14:6 12:24;13:12,19;14:2, J 18:12;22:7,23 23:14 forgot (1) 7,16,17;15:1;20:4,20; dispute (3) evidence (13) 6:1 21:2,6 January (8) 9:15,16;10:3 6:24;8:6;13:10,22, formal (1) hearsay (1) 17:23;18:3,24; divorce (3) 22;14:10,22;15:13; 14:21 14:24 22:12,14,17;23:11,15 9:9,10;13:16 19:7,16,19;20:3; forward (1) held (1) Jim (2) divorced (1) 21:24 15:9 21:4 4:7,16 8:18 evidentiary (1) fulfill (1) helpful (1) John (1) documentation (2) 5:8 12:8 19:21 4:9 14:11;15:12 exact (2) fulfilling (1) Hi (1) journal (1) documents (5) 15:22;16:6 10:21 4:22 17:9 6:10,21;7:7;8:3; exercise (1) full (1) hole (3) 16:9 11:13 21:22 11:5,9;12:5 K dollar (2) exercising (1) Fund (6) Housey (14) 16:6;18:23 11:13 4:3;8:20,21;9:6,23; 4:13,14;5:20,20; kind (1) done (4) Exhibit (5) 13:24 20:9,9;21:17,17; 11:19 9:18,19;14:9;23:15 7:10,12,15;8:4; fundamental (1) 22:19;23:2,2;24:5,5, King (15) down (1) 16:17 14:23 11 4:7,8;5:18,23,23; 17:19 exhibits (12) funds' (1) husband (1) 20:12,12;21:16,20, During (1) 4:24;6:8,11,16,19, 22:1 8:18 20;23:5,5;24:3,8,8 14:7 22;7:2,3,8;8:2;16:17; further (1) duty (3) 17:6 19:11 I L 9:22;11:14;12:8 F G identification (4) LABARDI (47) E 6:12,23;7:9;8:5 4:1,15,17,23;5:15, facts (1) gave (2) identify (1) 16,19;6:1,6,13,18; easiest (1) 15:3 10:2;12:11 4:17 7:1,10;8:1,7;9:7; 16:1 fair (8) Generally (1) important (1) 13:8;14:5;15:11,24; effective (1) 6:6;12:22;16:8,14; 17:15 10:12 16:8,14;17:3,20;18:1, 23:11 17:3;18:5,19;19:5 Gentlemen (1) include (1) 5,10,14;19:5,9,13,15; either (1) fairness (1) 19:15 15:3 20:1,8,14,17;21:5,22; 15:2 14:23 gets (1) including (1) 22:7,20,23;23:1,7,22; Ellyn (2) far (1) 9:9 14:11 24:4,10,13 4:3;13:23 17:14 given (2) income (2) labeled (1) else (2) fault (1) 4:24;10:22 11:2;12:4 7:3 10:2;23:17 11:23 gives (1) incorrectly (1) larger (1) e-mail (1) favor (1) 9:13 10:2 11:9 7:12 24:13 giving (1) increase (4) last (3) emphasize (1) fiduciary (1) 12:17 17:21;18:3,24; 5:2;8:19;17:10 10:13 9:22 Glen (2) 23:10 law (2) end (2) figure (2) 4:3;13:23 increases (1) 7:13;15:4 12:24;17:6 11:10;15:22 Good (1) 17:22 lay (1) enough (7) file (1) 4:19 indicate (2) 13:11 6:6;16:8,14;17:3; 15:2 gross (1) 4:23;17:11 left (2) 18:5,19;19:5 final (2) 17:12 indicated (3) 4:21;20:17 Min-U-Script® Schelli Reporting Service, Ltd. (2) described - left (312) 558-1113 Glen Ellyn Police Pension Fund Mary Roman Overpayment Matter October 10, 2024 legal (3) merely (1) 14:2 9:12;10:5,20 23:4;24:7 13:21;14:13,15 12:9 number (1) parties (7) previously (4) less (2) met (1) 23:8 6:8;14:7,10,19; 6:7,22;8:4;13:18 11:11,19 21:8 15:2;21:1,4 prior (1) light (1) might (2) O partner (1) 17:16 21:24 17:4,21 7:13 probably (1) limit (1) mind (1) objecting (1) party's (1) 23:15 10:10 20:15 11:24 13:16 problem (1) Linda (1) minute (2) objection (4) passed (1) 11:6 18:10 18:11;20:14 5:12,14;6:20;7:20 23:7 procedural (1) little (1) mistake (3) objections (2) pay (5) 7:2 11:18 9:14;11:1,4 5:7;6:15 9:5;11:8,15;22:10, Procedure (1) live (1) mistakenly (1) obligated (1) 15 14:22 11:5 10:2 10:17 PAYEE (2) procedures (2) LOFGREN (23) mistakes (1) obligation (4) 8:16;13:15 14:5;15:9 4:19,20;5:14;6:17; 10:1 9:24;10:4,5,21 payment (7) proceed (1) 7:21;8:17;15:10,15; money (11) obviously (2) 10:11;11:3,8,19; 14:3 16:5,13;17:1,15,24; 10:1,21;11:7,11,14, 18:20;23:8 13:5;17:18;22:17 proceedings (5) 18:4,9;19:3,8,11,14; 16;12:2,8,10,17; occur (1) payments (8) 13:20;20:19;21:2, 22:6,22;23:19,21 15:21 17:23 8:19,22;9:11,17; 3;24:15 look (1) monies (1) October (1) 10:14;12:10,13; proportional (1) 17:5 10:22 17:7 17:17 17:22 looking (1) MONSON (16) off (4) payroll (6) protect (1) 10:6 4:6,9,11,13,16,16; 17:21;18:2,10,12 17:9;22:1,12,14; 9:22 5:22,22;20:11,11; offered (2) 23:11,12 provided (1) M 21:19,19;23:4,4;24:7, 6:23;8:5 Pension (11) 6:7 7 officer (4) 4:3;8:19,20,21;9:2, public (3) makes (1) month (8) 5:6,13,17;14:16 11;10:7,11;11:3; 6:2,3;20:21 10:6 9:1;10:15;11:3,18; one (5) 13:13,23 purposes (2) March (1) 12:11;17:10,18;23:9 5:9;6:1;12:16; percent (13) 10:19,20 16:18 monthly (8) 16:23,23 10:10,13,15,16,18; pursuant (3) marked (6) 8:22;11:8,9;12:10; only (3) 11:7,19,20;13:5; 13:13,16;20:2 6:8,11,22;7:8;8:4; 13:3,5;17:11;22:9 16:15,23;17:4 18:18;21:24;22:9,16 put (2) 16:19 more (1) open (4) percentage (4) 9:6;15:15 Mary (10) 18:7 19:17;20:3,4;21:11 18:22;19:1,2,3 putting (1) 4:20;7:14,16;8:17; most (1) opening (3) please (8) 12:18 11:14,14;12:20; 10:12 8:13,15;14:8 4:5,18;5:19;12:22; 13:15;22:9,15 motion (15) opportunity (1) 20:8;23:1,24;24:4 Q Mary's (6) 5:4,5,15,16;20:1; 8:12 pleasure (1) 9:5;10:14,24;11:1, 21:12,12,14;22:8,13, opposed (1) 19:22 QIDRO (8) 23,23 21;23:23;24:1,10,11 18:22 point (1) 4:2;9:8;13:16; math (2) move (4) order (3) 22:2 16:18,19,22;17:2; 18:11,16 15:20;19:23;20:5,6 13:2;22:15;23:13 Police (2) 21:6 matter (5) Mrs (1) out (5) 4:3;13:23 quorum (1) 4:2;13:17;14:18; 13:18 9:13;11:10;12:10; post-finding (1) 4:5 15:7;21:7 much (3) 13:11;19:19 15:3 matters (3) 9:5;10:9;19:2 outside (2) post-hearing (1) R 5:8;8:10;14:15 20:16,20 15:2 may (4) N over (2) potential (2) range (1) 5:8;14:8,10,13 5:7;12:14 13:9,14 11:21 maybe (1) name (1) overpaid (1) prefer (2) read (1) 15:24 4:19 11:24 8:14;16:4 18:2 means (2) need (6) overpayment (6) preparation (2) ready (1) 5:6;17:7 10:4;16:6,16;17:5; 9:1,2;13:15;16:11; 23:23;24:2 14:2 meeting (5) 21:12;23:23 17:17;22:10 present (3) really (1) 6:2,2;17:9;20:18; new (1) overpayments (2) 13:21;14:10;21:4 8:9 23:16 15:18 9:14;11:17 presented (1) recalculation (1) Meetings (2) nine (3) owner (1) 20:4 9:17 20:3;21:11 8:19;12:14,18 12:9 preside (1) receipt (1) members (1) none (1) 5:6 14:1 20:16 6:6 P President (11) receive (1) mentioned (1) notice (4) 4:4,6,9,11,13,16; 8:23 10:24 5:1;7:10;13:19; particular (3) 5:22;20:11;21:19; received (3) Min-U-Script® Schelli Reporting Service, Ltd. (3) legal - received (312) 558-1113 Glen Ellyn Police Pension Fund Mary Roman Overpayment Matter October 10, 2024 6:24;8:6;11:15 right (3) 5:3 14:21 under (2) receiving (1) 11:2;12:21;13:21 side (1) tells (1) 9:6;20:22 8:19 rightful (1) 5:9 9:13 up (4) record (12) 12:8 Simply (3) tendered (1) 5:3;10:10,13;11:7 4:1,18,23;6:18;7:4; roll (5) 9:6;12:9;13:1 15:13 utilized (1) 8:1;18:10,13,14,15; 4:5;5:19;20:8; sitting (1) terms (1) 14:5 21:5,23 23:1;24:4 4:21 19:1 recorded (1) Roman (20) situation (1) Terranova (15) V 21:10 4:2,20,22,24;7:14, 9:8 4:11,12;5:21,21; recoup (2) 16,16;8:17;13:15,18; situations (1) 20:7,10,10;21:14,18, various (1) 9:14;11:14 14:1,4;15:16;17:14; 10:9 18;23:3,3;24:6,6,12 7:15 recoupment (1) 19:13;21:6;22:10,15, Social (1) testifies (1) vote (2) 13:2 16;23:20 11:2 16:2 19:17;22:21 reduce (1) Roman's (1) someone (2) testify (1) 22:8 22:9 10:2;18:16 15:16 W reduced (2) room (1) sort (1) testimony (3) 17:18,19 18:16 16:22 13:10;14:11;20:4 waive (1) re-entered (1) roughly (4) sound (1) Thomas (1) 8:14 21:2 10:14,15;11:18; 17:13 22:15 wants (2) reference (1) 13:4 sounds (1) threw (1) 8:8;12:7 10:7 rule (2) 20:1 17:21 waste (1) reflect (3) 5:7;14:24 sources (1) thumb (1) 15:17 6:18;8:1;18:15 rules (4) 11:1 6:14 way (1) regular (2) 13:11;14:21,22,23 speak (1) today (4) 12:11 6:2;17:9 Rulings (1) 5:1 4:20;5:1;9:4;17:9 ways (1) relevant (2) 14:15 speaking (1) today's (1) 11:10 9:6,8 17:15 7:11 week (1) render (1) S specific (1) Tom (5) 5:2 15:5 18:22 4:24;7:16;8:18; Wentworth (1) repaid (2) same (2) spouse (1) 10:23;22:10 7:13 22:11,18 11:15;12:11 9:9 Tony (1) what's (4) repayment (3) scale (1) state (1) 4:11 9:22;10:19;15:13; 13:2;18:7;19:4 11:15 9:8 total (2) 19:22 reporter (2) seal (1) stated (1) 12:13;16:11 WHEREUPON (8) 23:24;24:2 20:22 15:16 transcribed (2) 6:10,21;7:7;8:3; represented (1) Second (7) statement (4) 20:21;21:10 18:12;20:16,19;21:1 13:21 5:18;7:6;20:7; 8:13,15;14:8;19:10 transcript (2) who's (1) representing (1) 21:16;22:19;24:3,12 statute (5) 23:24;24:2 18:16 7:14 section (4) 9:7,23;10:5,13; TRUSTEE (37) William (1) request (2) 9:12;10:5,7;20:2 19:2 4:8,10,12,14;5:16, 4:13 18:6;21:24 Security (1) stipulate (7) 18,20,21,23,24; wish (1) require (2) 11:2 6:17;7:21;16:3,6, 19:23;20:6,7,9,10,12, 19:11 11:8,14 seek (1) 13;17:1;18:4 13;21:14,16,17,18, without (1) required (1) 10:10 submit (1) 20,21;22:13,19;23:2, 6:19 9:5 sent (1) 15:12 3,5,6;24:1,3,5,6,8,9, witnesses (3) respond (1) 13:19 subsequent (2) 11,12 15:12;19:7,20 13:22 separate (1) 16:22,22 trustees (1) work (2) responding (1) 20:22 suggest (2) 13:23 11:11;12:7 24:14 serve (1) 5:4;18:21 try (1) written (2) response (2) 5:17 suggestion (1) 9:24 15:6;23:13 6:5;22:24 served (1) 18:21 trying (1) rest (1) 23:14 support (1) 15:20 Y 19:14 serving (1) 14:11 twelve-thousand (1) rests (1) 5:13 sure (3) 15:23 years (4) 19:13 session (13) 9:21;22:2,4 two (1) 8:18,19;12:14,18 result (1) 5:10,11;19:17,18, swear (1) 11:1 18:2 24;20:2,20;21:8,9,10, 16:2 Z retired (1) 13,15;22:8 U 11:1 set (2) T zero (1) reversal (1) 18:7,22 ultimately (1) 11:20 11:4 share (1) talk (1) 18:20 Richard (1) 17:22 9:4 unbeknownst (1) 1 4:20 showing (1) technical (1) 12:17 Min-U-Script® Schelli Reporting Service, Ltd. (4) receiving - zero (312) 558-1113 Glen Ellyn Police Pension Fund Mary Roman Overpayment Matter October 10, 2024 1 (1) 13:13 10 (7) 10:10,13,15,16,18; 11:7,20 10/10/2024 (2) 6:12;7:9 2 2005 (2) 16:18,23 2024 (1) 17:10 2025 (4) 22:12,14,17;23:11 23 (1) 17:7 2c4 (1) 20:2 3 3 (2) 10:8;13:13 4 4 (1) 13:5 4.42 (5) 18:18;19:4;21:24; 22:9,16 5 5 (2) 11:19;13:5 Min-U-Script® Schelli Reporting Service, Ltd. (5) 1 - 5 (312) 558-1113

Agenda

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Agenda Village of Glen Ellyn Police Pension Board Special Meeting Thursday, October 10, 2024 4:30 PM Glen Ellyn Civic Center, Galligan Board Room Visitors are most welcome to attend all meetings of the Police Pension Board and can find copies of the Agenda at the meeting or online at www.glenellyn.org prior to the meeting. Any individual with a disability requiring reasonable accommodation in order to participate in a meeting should contact The Village of Glen Ellyn ADA Coordinator, 630-469-5000, at least five (5) business days in advance of the next scheduled meeting. All matters on the Agenda may be discussed, amended, and acted upon. A. Call to Order B. Roll Call C. Public Comment D. Approval of Minutes 1) July 17, 2024 Meeting E. Accountant's Report 1) Lauterbach and Amen will present the monthly financial report 2) Presentation and approval of bills as listed in the monthly financial report 3) Additional Bills 4) Cash Management Policy F. Investment Report 1) IPOPIF - Verus Advisory Inc. G. Communication and Reports 1) Affidavits of Continued Eligibility H. Trustee Training Updates 1) Approval of Trustee Training Registration Fees & Reimbursable Expenses I. Approval of Membership/Withdrawals from Fund J. Applications for Retirement/Disability Benefits K. Old Business 1) Portability Update - Caitlin Tabor 2) Portability Updates - Kevin Lombard 3) Review/Adopt - Municipal Compliance Report L. New Business 1) Establish 2025 Board Meeting Dates M. Attorney Report 1) Annual Independent Medical Examinations - Thomas Hartzell and Raymond Munch Village of Glen Ellyn Page 1 of 34 Police Pension Board Agenda October 10, 2024 Page 2 2) Legal Updates N. Public Hearing on Thomas Roman Benefit Issue O. Motion to adjourn to closed executive session for the purpose of considering the evidence produced at the public hearing, provided that a written decision setting forth the Police Pension Board’s determinative reasoning is issued thereafter, pursuant to 5 ILCS 120/2 (c) (4). P. Return to Open Session to Adopt Decision on Thomas Roman Benefit Issue Q. Adjourn Village of Glen Ellyn Page 2 of 34 Village of Glen Ellyn Minutes Village of Glen Ellyn Police Pension Board Meeting Regular Meeting July 17, 2024 4:30 PM Civic Center Room 306 Board or Police Pension Date: July 17, 2024 Commission: Meeting: Regular Called to 4:30 p.m. Order: Quorum: No Adjourned: 5:21 p.m. MEMBER ATTENDANCE: Jim Monson President Absent John Adduci Trustee Present William Housey Jr. Trustee Present James King Trustee Present Anthony Terranova Trustee Present Also Present: Patrick Brankin Finance Director Elisa Pollina Recording Secretary Richard Lamb Lauterbach & Amen Public: A. CALL TO ORDER The July 17, 2024 meeting of the Police Pension Board was called to order by Trustee Terranova at 4:30 pm at the Glen Ellyn Civic Center, Room 306. B. PUBLIC COMMENT – None C. 1. APPROVAL OF MINUTES FROM APRIL 17, 2024 MEETING MOTION TO APPROVE MINUTES FROM APRIL 17, 2024 POLICE PENSION BOARD MEETING AS AMMENDED MOTION BY: John Adduci, Trustee SECONDED BY: Bill Housey, Trustee RESULT: UNANIMOUS APPROVAL Page 3 of 34 Police Pension 2 July 17, 2024 2. Semi-Annual Review of Closed Session Meeting Minutes – None D. Accountant’s Report 1. Lauterbach and Amen present the monthly financial report: Richard Lamb from Lauterbach and Amen reviews the financial report month ending May 31, 2024 with the Police Pension Board. Statement of Net Position as of May 31, 2024 – Total Assets - $39,600.561.17, Total Contributions - $1,101,983.88, Total Additions - $2,730,501.27, Pension Benefits - $1,402,064.11; Change in Position- $1,328,437,16. Revenue Report as of May 31, 2024 – Total Contributions – $236,216.06; Total Investment Income - $1,089,407.92; Total Revenue $1,325.623.98. Expense Report as of May 31, 2024 – Total Expenses - $308,488.68 Richard Lamb reviews the cash analysis, revenue, expense, contribution, payroll, quarterly disbursement, and transfer reports in detail. After reviewing the transfer report, Trustee Housey emphasizes that the transfers to consolidated funds should be held in interest-bearing accounts. Trustee Housing motioned to accept the monthly financial report as presented; Trustee King seconded the motion. APPROVAL [UNANIMOUS] MOVER: William Housey, Trustee SECONDER: James King, Trustee AYES: Adduci, Terranova, Housey, King 2. Presentation and Approval of bills as listed in the monthly financial report – Trustee Terranova motioned to approve the quarterly disbursement report and the payment of bills in the amount of $29,138.21; Trustee King seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: James King, Trustee AYES: Adduci, Terranova, Housey, King 3. Additional Bills – None 4. Cash Management Policy – No action at this time. E. Investment Report 1. IPOPIF Versus Advisory Inc. – The Police Pension received and reviewed the performance of the Page 4 of 34 Police Pension 3 July 17, 2024 IPOPIF report. F. Communication and Reports 1. Affidavits of Continued Eligibility – Richard Lamb announces that all affidavits have been submitted, with none outstanding. Lamb has forwarded all affidavits to the Police Pension. 2. Active Member File Maintenance – Lamb has provided all active member files, noting that this is part of our PSA service. He also presented a breakdown of each active member's information, along with letters detailing any missing information. These letters have been submitted to the Police Pension. G. Trustee Training Updates 1. Approval of Trustee Training Registration Fees and Reimbursable Expenses Trustee Terranova motioned to approve reimbursement expenses for James Monson for the Spring Training Conference in the amount of $571.78; Trustee Adduci seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: John Adduci, Trustee AYES: Adduci, Terranova, Housey, King Trustee Adduci motioned to approve reimbursement expenses for Anthony Terranova for the Spring Training Conference in the amount of $558.12; Trustee Housey seconded the motion APPROVAL [UNANIMOUS] MOVER: John Adduci, Trustee SECONDER: Bill Housey, Trustee AYES: Adduci, Housey, King ABSTAIN: Terranova H. Approval of Membership / Withdrawals from Fund 1. Applications for Membership – Matthew Goy and Caitlin Sciabica Trustee Terranova motioned to accept the application of Officer Matthew Goy born August 5, 2001 as a Tier 2 member with no previous credible service into the Police Pension effective on July 17, 2024. Trustee Adduci seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: John Adduci, Trustee AYES: Adduci, Housey, King, Terranova Page 5 of 34 Police Pension 4 July 17, 2024 Trustee Terranova motioned to accept the application of Officer Caitlin Sciabica born August 4, 2001 as a Tier 2 member with no previous credible service into the Police Pension effective on July 17, 2024. Trustee King seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: James King, Trustee AYES: Adduci, Housey, King, Terranova 2. Contribution Refund – Sam Carius – Trustee Terranova provided an update stating that Sam Carius, a former officer who recently resigned to accept a position as a CSO in Glen Ellyn, has requested a full refund from the Police Pension fund in the amount of $56,437.37 and direct rollover into an IRA. Trustee Terranova motioned to approve the contribution refund in the amount of $56,437.37. Trustee King seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: James King, Trustee AYES: Adduci, Housey, King, Terranova I. APPLICATIONS FOR RETIREMENT / DISABILITY BENEFITS 1. Approval of Surviving Spouse Benefits – Carol Ryan Trustee Terranova motioned to approve Spousal Benefits to Carol Ryan in the amount of the monthly benefits of $3,573.53 with no COLA increases; Trustee Adduci seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: John Adduci, Trustee AYES: Adduci, Housey, King, Terranova 2. Approval of Regular Retirement Benefits – Stephen Miko, Joseph Nemchock, and Janet Terranova. Terranova stated that three individuals have retired but are not yet eligible to collect their pensions. We worked to determine what their monthly pensionable salaries will be. Trustee Terranova motioned to approve retirement pension for Stephen Miko in the pro- rated monthly amount of $1,426.96 effective July 22, 2029 with the full month benefit beginning August 21, 2029 in the amount of $4,423.57. Trustee King seconded the Page 6 of 34 Police Pension 5 July 17, 2024 motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: James King, Trustee AYES: Adduci, Housey, King, Terranova Trustee Terranova motioned to approve retirement pension for Joseph Nemchock, retired January 6, 2023, in the pro-rated monthly amount of $3,358.38 with the full month benefit beginning January 1, 2030 in the amount of $4,019.77. Trustee Adduci seconded the motion. APPROVAL [UNANIMOUS] MOVER: Anthony Terranova, Trustee SECONDER: John Adduci, Trustee AYES: Adduci, Housey, King, Terranova Trustee King motioned to approve retirement pension for Janet Terranova in the pro- rated monthly amount of $4,124.64 effective October 11, 2027 with the full month benefit beginning November 1, 2027 in the amount of $6,088.76. Trustee Housey seconded the motion. APPROVAL [UNANIMOUS] MOVER: James King, Trustee SECONDER: Bill Housey, Trustee AYES: Adduci, Housey, King ABSTAINS: Terranova J. OLD BUSINESS 1. Portability Updates – Caitlin Tabor – No update 2. Benefits Discrepancy – Thomas Roman – Finance Director Brankin announced that a public hearing is scheduled for August 29, 2024, at 4:30 p.m. 3. IDOI Annual Statement – Richard Lamb reported that the IDOI Annual Statement has been filed, confirming compliance. Trustee Adduci motioned to accept the IDOI statement, and Trustee King seconded the motion. The motion unanimously passed. 4. Review Updated Letter of Credit – No action needed. Page 7 of 34 Police Pension 6 July 17, 2024 K. NEW BUSINESS 1. Review/Approve – Actuarial Valuation and Tax Levy Request Trustee Adduci motioned to approve the final Actuarial Valuation report as provided; Trustee King seconded the motion. The motion unanimously passed 2. Review/Adopt Municipal Compliance Report – Richard Lamb announced that the report will be presented at the 4th quarter meeting. He noted that this report provides a snapshot of the fiscal year performance. It will be added to the agenda for that meeting. 3. Board of Officer Elections – President, Vice President, Secretary and Assistant Secretary - Trustee Terranova motioned to maintain the current board officers and to forgo holding an officer election; Trustee Adduci seconded the motion. The motion unanimously passed. Pension Board: Trustee Monson as President Trustee Terranova as Secretary Finance Director Brankin as Treasurer Trustee Housey as Vice President President Adduci as Assistant Secretary 4. FOIA Officer and OMA Designee – Trustee Terranova motioned to nominate President Monson as the FOIA Officer and OMA Designee; Trustee King seconded the motion. The motion unanimously passed. L. ATTORNEY’S REPORT – Annual Independent Medical Examination – Thomas Hartzell and Raymond Munch – This will be moved to the next meeting agenda. M. CLOSED SESSION, IF NEEDED – Closed session is not needed. N. ADJOURNMENT – Trustee King motioned and Trustee Adduci seconded to adjourn the meeting. The meeting was adjourned at 5:21 p.m. Submitted by Elisa Pollina, Recording Secretary Reviewed by Finance Director Brankin Page 8 of 34 Glen Ellyn Police Pension Meeting 10/10/2024 4:30 PM Board Department: Finance 535 Duane Street Department Head: Patrick Brankin Glen Ellyn, IL 60137 Category: Report Prepared By: Patrick Brankin AGENDA ITEM (ID DOC ID: 2024-709 # 2024-709) IPOPIF - Verus Advisory Inc. Statement of the Issue: Analysis: Budget Impact: Contribution to Strategic Plan Action Requested: Attachments: 1. IPOPIF August 2024 2. Verus Statement August 2024 Page 9 of 34 GLEN ELLYN POLICE PENSION FUND Month Ended: August 31, 2024 Market Value Summary: Current Period Year to Date Beginning Balance $40,864,719.75 $38,214,782.11 Contributions $52,000.00 $262,400.00 Withdrawals ($63,636.00) ($610,375.65) Transfers In/Out $0.00 $0.00 Income $20,354.24 $152,024.56 Administrative Expense ($691.64) ($4,761.42) Investment Expense ($1,012.83) ($4,494.64) Investment Manager Fees ($2,664.05) ($5,936.93) IFA Loan Repayment $0.00 $0.00 Adjustment $0.00 $0.00 Realized Gain/Loss $59,453.58 $931,926.61 Unrealized Gain/Loss $728,394.22 $2,721,352.63 Ending Balance $41,656,917.27 $41,656,917.27 Performance Summary: Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: 1.97% 4.38% 9.98% 16.09% N/A N/A N/A 5.59% 04/01/2022 Returns for periods greater than one year are annualized Contact Information: Illinois Police Officers’ Pension Investment Fund, 456 Fulton Street, Suite 402 Peoria, Illinois 61602 Phone: (309) 280-6464 Email: Info@ipopif.org Page 1 of 3 Page 10 of 34 GLEN ELLYN POLICE PENSION FUND Fund Name: IPOPIF Pool Month Ended: August 31, 2024 Market Value Summary: Unit Value Summary: Current Period Year to Date Current Period Year to Date Beginning Balance $40,864,719.75 $38,214,782.11 Beginning Units 3,518,677.797 3,549,038.901 Contributions $52,000.00 $262,400.00 Unit Purchases from Additions 4,407.512 23,291.172 Withdrawals ($63,636.00) ($610,375.65) Unit Sales from Withdrawals (5,431.692) (54,676.455) Transfers In/Out $0.00 $0.00 Ending Units 3,517,653.617 3,517,653.617 Income $20,354.24 $152,024.56 Administrative Expense ($691.64) ($4,761.42) Period Beginning Net Asset Value per Unit $11.613658 $10.767643 Investment Expense ($1,012.83) ($4,494.64) Period Ending Net Asset Value per Unit $11.842245 $11.842245 Investment Manager Fees ($2,664.05) ($5,936.93) IFA Loan Repayment $0.00 $0.00 Adjustment $0.00 $0.00 Realized Gain/Loss $59,453.58 $931,926.61 Unrealized Gain/Loss $728,394.22 $2,721,352.63 Ending Balance $41,656,917.27 $41,656,917.27 Performance Summary: GLEN ELLYN POLICE PENSION FUND Inception to Participant MTD QTD YTD One Year Three Years Five Years Ten Years Date Inception Date Net of Fees: 1.97% 4.38% 9.98% 16.09% N/A N/A N/A 5.90% 04/06/2022 Returns for periods greater than one year are annualized Contact Information: Illinois Police Officers’ Pension Investment Fund, 456 Fulton Street, Suite 402 Peoria, Illinois 61602 Phone: (309) 280-6464 Email: Info@ipopif.org Page 2 of 3 Page 11 of 34 Statement of Transaction Detail for the Month Ending 08/31/2024 GLEN ELLYN POLICE PENSION FUND Trade Date Settle Date Description Amount Unit Value Units IPOPIF Pool 08/20/2024 08/21/2024 Redemptions (63,636.00) 11.715687 (5,431.6917) 08/29/2024 08/30/2024 Contribution 52,000.00 11.798039 4,407.5121 Page 3 of 3 Page 12 of 34 Aug 2024 Statement Supplement Asset Flows Period New Asset Transfers Cash Contributions Cash Withdrawals August 2024 Zero $91 million $45 million CY 2024 Zero $442 million $369 million Expenses Paid Administrative Investment Investment Period Expenses Expenses Manager Fees 8/1/2024 $182,984.92 $267,961.78 $704,820.00 CY 2024 $1,251,396.01 $1,181,438.81 $1,563,812.99 • Expenses are paid from the IPOPIF Pool and allocated proportionately by member value. • Investment expenses exclude investment manager fees. Investment Pool Details Date Units Value Unit Price 7/31/24 930,927,793.1850 10,811,476,800.75 11.613658 8/31/24 934,877,747.4501 11,071,051,678.37 11.842245 A spreadsheet with complete unit and expense detail history is linked on the Article 3 Fund Reports page as -IPOPIF Unit and Expense information NAV and Receivable Calculations Under Development The IPOPIF Valuation and Cost Rule, AR-2022-01, stipulates that the Net Asset Value (NAV) for each Participating Police Pension Fund will include receivables representing proportionate amounts due from late-transferring pension funds for all Costs, IFA Loan Repayments, and interest. These calculations are under development. Resources • Monthly statement overview: Link to Statement Overview • Monthly financial reports: https://www.ipopif.org/reports/monthly-financial-reports/ • Monthly and quarterly investment reports: https://www.ipopif.org/reports/investment- reports/ • IPOPIF Board Meeting Calendar: https://www.ipopif.org/meetings/calendar/ Illinois Police Officers’ Pension Investment Fund 309-280-6464 456 Fulton Street, Suite 402 info@ipopif.org Peoria, Illinois 61602 Page 13 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: August 31, 2024 Market % of Target Since Inception 1 Mo Fiscal YTD YTD 1 Yr 2023 Value Portfolio (%) Inception Date Total Fund with Member and Transition Accounts 11,078,622,107 100.0 100.0 2.0 4.5 10.1 16.3 13.7 5.7 03/01/22 Policy Index 2.0 4.6 10.3 16.4 14.2 5.7 Policy Index- Broad Based 2.3 4.7 11.1 17.9 16.8 5.4 IPOPIF Investment Portfolio 11,078,622,107 100.0 100.0 2.0 4.5 10.1 16.3 13.7 5.6 04/01/22 Policy Index 2.0 4.6 10.3 16.4 14.2 5.7 Policy Index- Broad Based 2.3 4.7 11.1 17.9 16.8 5.3 Growth 6,434,767,273 58.1 58.0 2.2 5.0 13.9 21.2 19.4 7.3 04/01/22 Growth Benchmark 2.2 5.3 14.1 21.5 19.5 7.2 RhumbLine Russell 1000 Index 2,515,967,233 22.7 23.0 2.4 3.8 18.6 26.5 26.5 14.2 03/15/22 Russell 1000 Index 2.4 3.9 18.6 26.6 26.5 14.4 RhumbLine Russell 2000 Index 566,956,405 5.1 5.0 -1.5 8.5 10.4 18.4 16.8 6.8 03/15/22 Russell 2000 Index -1.5 8.5 10.4 18.5 16.9 7.1 SSgA Non-US Developed Index 2,133,777,632 19.3 19.0 3.3 6.6 12.1 19.8 18.3 10.3 03/10/22 MSCI World ex U.S. (Net) 3.3 6.6 11.9 19.4 17.9 9.9 International Developed Small Cap Equity 556,026,799 5.0 5.0 2.3 5.4 8.6 14.9 12.9 2.2 04/01/22 MSCI World ex U.S. Small Cap Index (Net) 1.9 7.5 8.6 14.8 12.6 1.9 Acadian ACWI ex US Small-Cap Fund 281,563,953 2.5 2.5 1.8 5.2 - - - 13.8 01/30/24 MSCI AC World ex USA Small Cap (Net) 1.8 5.7 - - 11.3 WCM International Small Cap Growth Fund 140,031,420 1.3 1.3 4.3 5.6 - - - 4.2 03/01/24 MSCI AC World ex USA Small Cap (Net) 1.8 5.7 - - - 9.5 LSV International Small Cap Value Equity Fund 134,431,426 1.2 1.3 1.3 5.9 - - - 9.3 03/01/24 S&P Developed Ex-U.S. SmallCap (Net) 1.5 5.8 - - - 9.1 Emerging Market Equities 662,039,204 6.0 6.0 1.0 1.7 9.5 14.9 9.7 1.7 04/01/22 MSCI Emerging Markets (Net) 1.6 1.9 9.5 15.1 9.8 1.4 SSgA Emerging Markets Equity Index 162,253,416 1.5 1.5 0.7 1.4 8.7 14.0 9.6 2.2 03/10/22 MSCI Emerging Markets (Net) 1.6 1.9 9.5 15.1 9.8 3.3 SSgA Emerging Markets ex China Equity 499,785,788 4.5 4.5 1.1 1.9 - - - 7.6 05/01/24 MSCI Emerging Markets ex China (Net) 1.8 2.7 - - - 8.8 Income 1,716,371,800 15.5 16.0 1.7 3.4 6.2 12.7 12.8 3.6 04/01/22 Income Benchmark 1.7 3.4 6.1 12.5 12.6 4.6 SSgA High Yield Corporate Credit 753,921,253 6.8 7.0 1.6 3.7 6.4 12.7 13.8 4.9 03/18/22 Spliced SSgA U.S. High Yield Index 1.6 3.6 6.3 12.5 13.5 4.8 SSgA EMD Hard Index Fund 651,692,255 5.9 6.0 2.3 4.2 6.7 13.6 11.2 3.7 03/14/22 Spliced SSgA EMD Hard Index 2.3 4.2 6.7 13.4 11.1 3.8 The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability. 1 Page 14 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Asset Allocation & Performance (Net of Fees) - Preliminary Period Ending: August 31, 2024 Market % of Target Since Inception 1 Mo Fiscal YTD YTD 1 Yr 2023 Value Portfolio (%) Inception Date Bank Loans 310,758,292 2.8 3.0 0.5 1.3 - - - 4.1 03/01/24 Credit Suisse Leveraged Loan Index 0.6 1.3 - - - 4.1 Ares Institutional Loan Fund 104,003,782 0.9 1.0 0.7 1.5 - - - 4.5 03/01/24 Credit Suisse Leveraged Loan Index 0.6 1.3 - - - 4.1 Aristotle Institutional Loan Fund 206,754,510 1.9 2.0 0.5 1.2 - - - 3.9 03/01/24 Credit Suisse Leveraged Loan Index 0.6 1.3 - - - 4.1 Real Assets 637,238,742 5.8 6.0 4.7 9.2 7.9 12.7 5.6 0.9 04/01/22 Real Assets Benchmark 4.2 8.4 7.0 10.4 4.7 -2.5 SSgA REITs Index 478,957,956 4.3 4.0 6.4 12.6 11.9 21.1 13.9 1.2 03/16/22 Dow Jones U.S. Select REIT Total Return Index 6.4 12.6 12.0 21.1 14.0 1.3 Principal USPA 158,280,786 1.4 2.0 0.0 0.3 -2.6 -7.3 -10.7 -6.8 04/06/22 Risk Mitigation 2,290,141,152 20.7 20.0 1.0 2.4 3.8 6.6 5.0 2.5 04/01/22 Risk Mitigation Benchmark 1.0 2.3 3.7 6.6 4.9 2.4 SSgA US Treasury Index 323,699,836 2.9 3.0 1.3 3.5 - - - 6.1 05/01/24 Blmbg. U.S. Treasury Index 1.3 3.5 - - - 6.1 SSgA Core Fixed Income Index 353,630,595 3.2 3.0 1.4 3.8 3.2 7.3 5.6 0.0 03/17/22 Blmbg. U.S. Aggregate Index 1.4 3.8 3.1 7.3 5.5 0.0 SSgA Short-Term Gov't/Credit Index 1,071,138,305 9.7 10.0 0.9 2.1 3.6 6.3 4.6 2.6 03/17/22 Bloomberg U.S. Gov/Credit 1-3 Year Index 0.9 2.1 3.5 6.3 4.6 2.6 SSgA US TIPS Index 320,044,476 2.9 3.0 0.8 1.5 3.8 6.3 4.6 1.7 03/17/22 Blmbg. U.S. TIPS 0-5 Year 0.6 1.5 3.8 6.3 4.6 1.8 Cash 221,627,941 2.0 1.0 0.4 0.9 3.4 5.3 5.0 3.8 03/22/22 90 Day U.S. Treasury Bill 0.5 0.9 3.6 5.5 5.0 4.1 IPOPIF Pool Fixed Income Transition 103,139 0.0 - Member Accounts - 0.0 - The Principal USPA Real Estate Fund is benchmarked against the NCREIF ODCE index on a quarterly basis and against itself for the purpose of monthly flash reports due to quarterly index data availability. 2 Page 15 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: July 31, 2024 Performance Return Calculations Performance is calculated using Time Weighted Rates of Return (TWRR) methodologies. Monthly returns are geometrically linked and annualized for periods longer than one year. Data Source Verus is an independent third party consulting firm and calculates returns from best source book of record data. Returns calculated by Verus may deviate from those shown by the manager in part, but not limited to, differences in prices and market values reported by the custodian and manager, as well as significant cash flows into or out of an account. It is the responsibility of the manager and custodian to provide insight into the pricing methodologies and any difference in valuation. Manager Line Up Manager Inception Date Data Source Manager Inception Date Data Source RhumbLine Russell 1000 Index Fund 3/15/2022 State Street SSgA EMD Hard Index Fund 3/14/2022 State Street RhumbLine Russell 2000 Index Fund 3/15/2022 State Street Ares Institutional Loan Fund 3/1/2024 Ares SSgA Non-US Developed Index Fund 3/10/2022 State Street Aristotle Institutional Loan Fund 3/1/2024 Aristotle SSgA Non-US Developed SC Index Fund 3/10/2022 State Street Principal USPA 4/6/2022 State Street Acadian ACWI ex US Small-Cap Fund 1/30/2024 State Street SSgA REITs Index Fund 3/10/2022 State Street WCM International Small Cap Growth Fund 3/1/2024 WCM SSgA US Treasury Index Fund 5/1/2024 State Street LSV International Small Cap Value Equity Fund 3/1/2024 LSV SSgA Core Fixed Income Index Fund 3/17/2022 State Street SSgA Emerging Markets Equity Index Fund 3/1/2022 State Street SSgA Short-Term Gov't/Credit Index Fund 3/17/2022 State Street SSGA Emerging Markets ex China Equity Index Fund 5/1/2024 State Street SSgA US TIPS Index Fund 3/17/2022 State Street SSgA High Yield Corporate Credit 3/18/2022 State Street Cash 3/22/2022 State Street Custom Benchmark Composition Benchmark Time period Composition Policy Index -Broad Benchmark 4/1/2022 - Present 70% MSCI ACWI IMI (Net) and 30% Bloomberg Global Multiverse. Spliced SSgA EMD Hard Benchmark 7/1/2023 - Present 100% JPM EMBI Global Diversified Index Spliced SSgA EMD Hard Benchmark 3/14/2022 - 6/30/2022 100% JPM EMBI Global Core Index Spliced SSgA U.S. High Yield Index 12/1/2022 - Present 100% ICE BofA US High yield Master II Constrained Spliced SSgA U.S. High Yield Index 4/1/2022 - 11/30/2022 100% Bloomberg U.S. High Yield Very Liquid Index 3 Page 16 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: July 31, 2024 Policy Index Composition Policy Risk As of 8/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 7/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 2% 3.4% MSCI Emerging Markets 3% 5.2% MSCI Emerging Markets ex China 4% 6.9% MSCI Emerging Markets ex China 3% 5.2% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% Credit Suisse Leveraged Loan Index 3% 18.8% Credit Suisse Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Treasury Index 2% 10.0% Bloomberg US Treasury Index 1% 5.0% Bloomberg 1-3 Year Gov/Credit Index 11% 55.0% Bloomberg 1-3 Year Gov/Credit Index 12% 60.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 6/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 5/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 4% 6.9% MSCI Emerging Markets 5% 8.6% MSCI Emerging Markets ex China 2% 3.4% MSCI Emerging Markets ex China 1% 1.7% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 7% 43.8% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% Credit Suisse Leveraged Loan Index 3% 18.8% Credit Suisse Leveraged Loan Index 3% 18.8% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Treasury Index 2% 10.0% Bloomberg US Treasury Index 1% 5.0% Bloomberg 1-3 Year Gov/Credit Index 11% 55.0% Bloomberg 1-3 Year Gov/Credit Index 12% 60.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% Policy Risk As of 4/1/2024 Policy Index Growth Income Real Assets Risk Mitigation As of 3/1/2024 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 23% 39.7% Russell 2000 5% 8.6% Russell 2000 5% 8.6% MSCI World ex U.S. 19% 32.8% MSCI World ex U.S. 18% 31.0% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 8.6% MSCI Emerging Markets 6% 10.3% MSCI Emerging Markets 7% 12.1% Bloomberg US Corporate High Yield Index 7% 43.8% Bloomberg US Corporate High Yield Index 8.5% 53.1% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% Credit Suisse Leveraged Loan Index 3% 18.8% Credit Suisse Leveraged Loan Index 1.5% 9.4% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 3% 15.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 15.0% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 1% 5.0% 3 Page 17 of 34 Total Fund Illinois Police Officers' Pension Investment Fund Data Sources and Methodology Page Period Ending: July 31, 2024 Policy Index Composition Policy Risk As of 5/1/2023 Policy Index Growth Income Real Assets Risk Mitigation As of 1/1/2023 Index Growth Income Real Assets Mitigation Russell 1000 23% 39.7% Russell 1000 18% 36.0% Russell 2000 5% 8.6% Russell 2000 5% 10.0% MSCI World ex U.S. 18% 31.0% MSCI World ex U.S. 15% 30.0% MSCI World ex U.S. Small Cap 5% 8.6% MSCI World ex U.S. Small Cap 5% 10.0% MSCI Emerging Markets 7% 12.1% MSCI Emerging Markets 7% 14.0% Bloomberg US Corporate High Yield Index 10% 62.5% Bloomberg US Corporate High Yield Index 10% 62.5% JPM EMBI Global Diversified Index 6% 37.5% JPM EMBI Global Diversified Index 6% 37.5% NFI-ODCE Equal-Weighted Index 2% 33.3% NFI-ODCE Equal-Weighted Index 2% 33.3% Dow Jones US Select REIT Index 4% 66.7% Dow Jones US Select REIT Index 4% 66.7% Bloomberg US Aggregate Index 3% 15.0% Bloomberg US Aggregate Index 7% 25.0% Bloomberg 1-3 Year Gov/Credit Index 13% 65.0% Bloomberg 1-3 Year Gov/Credit Index 15% 53.6% Bloomberg US TIPS 0-5 Year 3% 15.0% Bloomberg US TIPS 0-5 Year 3% 10.7% 90 Day US Treasury Bill Index 1% 5.0% 90 Day US Treasury Bill Index 3% 10.7% As of 3/31/2022 Policy Index Growth Income Real Assets Risk Mitigation Russell 3000 23% 46.0% MSCI ACWI ex USA IMI 20% 40.0% MSCI Emerging Markets IMI 7% 14.0% Bloomberg US Corporate High Yield Index 10% 62.5% 50% JPM EMBI GD/50% JPM GBI EM GD 6% 37.5% NCREIF Property Index 2% 66.7% Dow Jones US Select REIT Index 4% 33.3% Bloomberg US Aggregate Index 7% 25.0% Bloomberg 1-3 Year Gov/Credit Index 15% 53.6% Bloomberg US TIPS 0-5 Year 3% 10.7% 90 Day US Treasury Bill Index 3% 10.7% 3 Page 18 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND PUBLIC ACT 95-0950 MUNICIPAL COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 535 Duane Street Glen Ellyn, IL 60137 Phone: 630.469.1187 Fax: 630.469.8849 www.glenellyn.org Page 19 of 34 September 19, 2024 Members of the Pension Board of Trustees Glen Ellyn Police Pension Fund Glen Ellyn, Illinois Enclosed please find a copy of your Municipal Compliance Report for the Glen Ellyn Police Pension Fund for the fiscal year ended December 31, 2023. We have prepared the report with the most recent information available at our office. Should you have more current information, or notice any inaccuracies, we are prepared to make any necessary revisions and return them to you. The President and Secretary of the Pension Fund are required to sign the report on page 3. If not already included with the enclosed report, please also include a copy of the Pension Fund’s most recent investment policy. The signed Public Act 95-0950 - Municipal Compliance Report must be provided to the Municipality before the tax levy is filed on the last Tuesday in December. We are sending the report via email to promote an environmentally-friendly work atmosphere. If you have any questions regarding this report, please contact your Client Manager or PSA. Respectfully submitted, LAUTERBACH & AMEN, LLP Page 20 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2023 The Pension Board certifies to the Board of Trustees of the Village of Glen Ellyn, Illinois on the condition of the Pension Fund at the end of its most recently completed fiscal year the following information: 1) The total cash and investments, including accrued interest, of the fund at market value and the total net position of the Pension Fund: Current Preceding Fiscal Year Fiscal Year Total Cash and Investments (including accrued interest) $38,269,358 $33,989,666 Total Net Position $38,269,224 $33,989,666 2) The estimated receipts during the next succeeding fiscal year from deductions from the salaries of police officers and from other sources: Estimated Receipts - Employee Contributions $470,100 Estimated Receipts - All Other Sources Investment Earnings $2,487,500 Municipal Contribution $2,762,669 3) The estimated amount required during the next succeeding fiscal year to (a) pay all pensions and other obligations provided in Article 3 of the Illinois Pension Code, and (b) to meet the annual requirements of the fund as provided in Sections 3-125 and 3-127: (a) Pay all Pensions and Other Obligations $3,652,500 (b) Annual Requirement of the Fund as Determined by: Illinois Police Officers' Pension Investment Fund $1,920,006 Private Actuary - Foster & Foster Recommended Municipal Contribution $2,762,669 Statutory Municipal Contribution $2,195,261 Page 1 Page 21 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2023 4) The total net income received from investment of assets along with the assumed investment return and actual investment return received by the fund during its most recently completed fiscal year compared to the total net income, assumed investment return, and actual investment return received during the preceding fiscal year: Current Preceding Fiscal Year Fiscal Year Net Income Received from Investment of Assets $4,556,704 ($4,760,732) Assumed Investment Return Illinois Police Officers' Pension Investment Fund 6.800% 6.800% Private Actuary - Foster & Foster 6.500% 6.500% Actual Investment Return 12.612% (13.054)% 5) The total number of active employees who are financially contributing to the fund: Number of Active Members 43 6) The total amount that was disbursed in benefits during the fiscal year, including the number of and total amount disbursed to (i) annuitants in receipt of a regular retirement pension, (ii) recipients being paid a disability pension, and (iii) survivors and children in receipt of benefits: Total Amount Number of Disbursed (i) Regular Retirement Pension 30 $2,336,598 (ii) Disability Pension 3 $170,677 (iii) Survivors and Child Benefits 5 $346,517 Totals 38 $2,853,792 Page 2 Page 22 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2023 7) The funded ratio of the fund: Current Preceding Fiscal Year Fiscal Year Illinois Police Officers' Pension Investment Fund 67.03% 68.83% Private Actuary - Foster & Foster 62.19% 67.35% 8) The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability: Unfunded Liability: Illinois Police Officers' Pension Investment Fund $19,676,396 Private Actuary - Foster & Foster $24,779,806 The accrued liability is the actuarial present value of the portion of the projected benefits that has been accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions employed in the valuation. The unfunded accrued liability is the excess of the accrued liability over the actuarial value of assets. 9) Please see attached Investment/Cash Management policy if applicable Please see Notes Page attached. CERTIFICATION OF MUNICIPAL POLICE PENSION FUND COMPLIANCE REPORT The Board of Trustees of the Pension Fund, based upon information and belief, and to the best of our knowledge, hereby certify pursuant to §3-143 of the Illinois Pension Code 40 ILCS 5/3-143, that the preceding report is true and accurate. Adopted this ___________ day of __________, 2024 President __________________________________________________ Date ___________________ Secretary __________________________________________________ Date ___________________ Page 3 Page 23 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2023 INDEX OF ASSUMPTIONS 1) Total Cash and Investments - as Reported at Market Value in the Audited Financial Statements for the Years Ended December 31, 2023 and 2022. Total Net Position - as Reported in the Audited Financial Statementsfor the Years Ended December 31, 2023 and 2022. 2) Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the Year Ended December 31, 2023 plus 5.58% Increase (Actuarial Salary Increase Assumption) Rounded to the Nearest $100. Estimated Receipts - All Other Sources: Investment Earnings - Cash and Investments as Reported in the Audited Financial Statements for the Year Ended December 31, 2023, times 6.5% (Actuarial Investment Return Assumption) Rounded to the Nearest $100. Municipal Contributions - Recommended Tax Levy Requirement as Reported by Foster & Foster, Actuarial Valuation for the Year Ended December 31, 2023. 3) (a) Pay all Pensions and Other Obligations - Total Non-Investment Deductions as Reported in the Audited Financial Statements for the Year Ended December 31, 2023, plus a 25% Increase, Rounded to the Nearest $100. (b) Annual Requirement of the Fund as Determined by: Illinois Police Officers' Pension Investment Fund - Suggested Amount of Tax Levy as Reported in the December 31, 2023 Actuarial Valuation. Private Actuary - Foster & Foster: Recommended Amount of Tax Levy as Reported by Foster & Foster in the December 31, 2023 Actuarial Valuation. Statutorily Required Amount of Tax Levy as Reported by Foster & Foster in the December 31, 2023 Actuarial Valuation. Page 4 Page 24 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2023 INDEX OF ASSUMPTIONS 4) Net Income Received from Investment of Assets - Investment Income (Loss) net of Investment Expense, as Reported in the Audited Financial Statements for the Years Ended December 31, 2023 and 2022. Assumed Investment Return: Illinois Police Officers' Pension Investment Fund - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Years Ended December 31, 2023 and 2022 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Years Ended December 31, 2023 and 2022 Actuarial Valuations. Actual Investment Return -Net Income Received from Investments as Reported Above as a Percentage of the Average of the Beginning and Ending Balances of the Fiscal Year Cash Investments, Excluding Net Investment Income, Gains, and Losses for the Fiscal Year Return Being calculated, as Reported in the Audited Financial Statements for the Fiscal Years Ended December 31, 2023 and 2022. 5) Number of Active Members - Illinois Department of Insurance Annual Statement for December 31, 2023 - Schedule P. 6) (i) Regular Retirement Pension - Illinois Department of Insurance Annual Statement for December 31, 2023 - Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed. (ii) Disability Pension - Same as above. (iii) Survivors and Child Benefits - Same as above. Page 5 Page 25 of 34 THE VILLAGE OF GLEN ELLYN, ILLINOIS POLICE PENSION FUND Public Act 95-950 - Municipal Compliance Report For the Fiscal Year Ending December 31, 2023 INDEX OF ASSUMPTIONS 7) The funded ratio of the fund: Illinois Police Officers' Pension Investment Fund - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total Assets as Reported in the December 31, 2023 and 2022 Actuarial Valuations. Private Actuary - Current and Preceding Fiscal Year Net Present Assets as a percentage of Total Assets as Reported in the December 31, 2023 and 2022 Actuarial Valuations. 8) Unfunded Liability: Illinois Police Officers' Pension Investment Fund - Deferred Asset (Unfunded Accrued Liability) as Reported in the December 31, 2023 Actuarial Valuation. Private Actuary - Deferred Asset (Unfunded Accrued Liability) as Reported by Foster & Foster in the December 31, 2023 Actuarial Valuation. Page 6 Page 26 of 34 Volume 25, Issue 4, October 2024 Legal and Legislative Update Officer Entitled to Disability Benefits after In This Issue… Municipality Fails to Provide Employment 1 Officer Entitled to Disability Benefits Ohlicher v. The Retirement Board of the after Municipality Fails to Provide Policemen’s Annuity and Benefit Fund of the City Employment of Chicago, 2024 IL App (1st) 231699-U 2 Can Employers Withhold Plaintiff applied for duty disability benefits after Employment Taxes on PEDA injuring his right elbow when attempting to arrest Benefits? an uncooperative subject. He was diagnosed with right elbow nerve damage. Plaintiff underwent 4 Decade Old Motor Vehicle Accident surgery and physical therapy but continued to Not Casually Related to Disability report persistent pain in his right elbow. A functional capacity evaluation revealed he had FPIF Updates Rules on Cash reduced grip strength in his right hand as compared Management & Cost Allocation to his left hand. 5 Public Meetings Must be “Convenient Nevertheless, Plaintiff’s treating doctor released and Open” to the Public him to perform light duty with a 10-pound lifting restriction. Light duty positions required the officer be able to safely carry, handle, and use his Agenda Specificity & Remote service weapon. The doctor opined, without Attendance Under the Open Meetings explanation, Plaintiff could not safely carry, Act handle, or use his department-approved firearm despite Plaintiff’s service weapon weighing less 6 Shifting Arguments Midstream than 10 pounds. Plaintiff never attempted to Results in Denial of Duty Disability qualify with his service weapon 8 Suggested Agenda Items for January © 2024 REIMER DOBROVOLNY & LABARDI PC 1 9 RDL News 65 of 72 Page 27 of 34 The Pension Board retained Dr. M. Bryan Neal to The Appellate Court found the City’s perform an independent medical examination. Dr. failure/refusal to assign Plaintiff a light duty Neal opined Plaintiff could perform limited, light position made the Pension Board’s decision duty and safely, carry, handle, and use his firearm contrary to the manifest weight of the evidence. without restriction. Once again, citing Kouzoukas, the Appellate Court found the Pension Board did not have exclusive Before the Pension Board held a hearing on his jurisdiction over the award of Plaintiff’s disability disability application, Plaintiff reported to the benefits since the City’s employment decision Chicago Police Department Medical Section placed him in a “catch-22” position, thereby (“CPD Medical”) to obtain a light duty position. requiring the award of disability benefits. In this Plaintiff provided CPD medical with his treating regard, the Appellate Court stated it was bound by doctor’s opinion, but did not provide Dr. Neal’s the prior ruling in Kouzoukas. contradictory report. CPD Medical refused to provide Plaintiff with a light-duty assignment. It should be noted there is some conflicting case law involving Article 3 and 4 Pension Funds where After hearing the evidence, the Pension Board reviewing courts found an applicant can be found denied his application for duty disability benefits, not disabled yet still unable to report to duty. Those finding both doctors cleared Plaintiff for light duty. cases would seem to conflict with this decision and The only restriction imposed by Plaintiff’s treating the reasoning adopted in Kouzoukas. The Pension doctor was a 10-pound limit, and there was no Board petitioned the Illinois Supreme Court to evidence this restriction prohibited him from safely review the Appellate Court’s decision. The Illinois carrying, handling, and using his service weapon, Supreme Court recently denied the Board’s petition particularly since he never attempted to qualify. for leave to appeal.❖ Plaintiff again returned to CPD Medical to be reinstated to a light duty position. CPD Medical Can Employers Withhold Employment referred Plaintiff to Dr. Kristin Houseknecht, who Taxes on PEDA Benefits? opined he is unable to safely carry and handle a firearm. CPD Medical refused to assign Plaintiff a Bitner v. City of Pekin, 2024 IL App (4th) 230718 light duty position. Plaintiffs, Christopher Bitner and John Brooks, On administrative review, Plaintiff argued he was sued their former employer, defendant, the City of denied a disability benefit, yet unable to return to Pekin, seeking a declaratory judgment that work due to the City’s employment decision. defendant unlawfully withheld employment taxes Citing the Illinois Supreme Court’s decision in and deducted sick and compensatory time from Kouzoukas v. The Retirement Board of the benefits they received pursuant to the Public Policeman’s Annuity and Benefit Fund, Plaintiff Employee Disability Act (Disability Act) (5 ILCS asserted he was in a “catch-22” position, as he is 345/0.01 et seq.). The litigation culminated in unable to work but is not receiving disability cross-motions for summary judgment, and the benefits. Accordingly, Plaintiff argued he should circuit court entered summary judgment for plaintiffs. The appellate court, in turn, reversed the have been awarded disability benefits once the City circuit court and remanded for further proceedings failed/refused to assign him a light duty position. The appellate court viewed the dispositive issues as The Circuit Court of Cook County rejected follows: (1) whether the Disability Act prohibits Plaintiff’s argument and affirmed the decision of employers from withholding employment taxes, the Pension Board, finding its decision was not (2) whether plaintiffs’ claims are governed by a 5- contrary to the manifest weight of the evidence. year or 10-year statute of limitations, and (3) Plaintiff appealed. whether there exists a genuine issue of material fact to prohibit summary judgment. Defendant © 2024 REIMER DOBROVOLNY & LABARDI PC 2 66 of 72 Page 28 of 34 admitted it withheld employment taxes from plaintiffs did not seek relief nor judgment under Disability Act benefits. those other statutes or regulations. Keep in mind, this narrow declaratory judgment case is solely Plaintiffs’ motion outlined the undisputed facts in about interpreting the Disability Act. the case, namely, both plaintiffs suffered injuries in the line of duty while employed by defendant, were B. The Statute of Limitations unable to work due to their line-of-duty injuries, The parties next fought over the applicable statute and both had employment taxes withheld from of limitations. Defendant argued the five-year PEDA benefits. Defendants admitted withholding statute of limitations (“SOL”) applied, barring taxes but contested other issues. some claims. Plaintiffs maintained a 10-year SOL applied and did not bar any claims. The circuit court adopted wholesale plaintiffs’ proposed order, granting them summary judgment The Disability Act does not contain a SOL on July 20, 2023; entered judgment for plaintiffs; provision. Section 13-205 of the Civil Code and awarded plaintiffs prejudgment interest, costs, provides “all civil actions not otherwise provided and attorney fees. for[ ] shall be commenced within 5 years next after the cause of action accrued.” By contrast, section A. The Disability Act 13-206 of the Code provides for a 10-year statute The first legal question interpreted the Disability of limitations cause of actions on written contracts, Act's language. Specifically, does it prohibit an like CBAs. employer from withholding employment taxes? The Disability Act provides that when an eligible Plaintiffs maintained they brought a breach of employee suffers a line-of-duty injury and cannot contract claim against defendant, claiming the work, “he shall continue to be paid by the CBA required defendant to “comply with the employing public entity on the same basis as he [Disability Act] regarding on-duty claims,” and was paid before the injury, with no deduction from that their declaratory judgment action amounted to his sick leave credits, compensatory time for a breach of contract action. The appellate court overtime accumulations or vacation, or service pointed out Plaintiff’s did not file a grievance, as credits in a public employee pension fund during required by the CBA on this PEDA issue, writing the time he is unable to perform his duties due to “[t]his dissonance is deafening. On one hand the result of the injury.” plaintiffs emphasize the importance of the CBA, and on the other they minimize the CBA. Plaintiffs Based on the statute's plain language, the appellate cannot prevail on both claims.” court found that the phrase “on the same basis as he was paid before the injury” was not a prohibition The appellate court concluded plaintiffs’ second on withholding employment taxes. The language amended complaint falls under the Civil Code’s immediately following this phrase lists improper catchall five-year SOL for civil actions without an deductions—sick leave credits, accrued vacation otherwise applicable limitations period. and compensatory time, or service credits. These categories are not taxes, nor are they comparable to C. Genuine Issue of Material Fact employment taxes. Summary judgment cannot be entered if there remains a genuine issue of material fact in the case. The Disability Act's plain language is unambiguous Perhaps there is no better example of a contested and its meaning is clear. The Disability Act fact issue than dueling affidavits. Because the contains no mention of taxes or anything record contained evidence to support defendant's comparable to taxes and therefore does not prohibit position – and dueling affidavits – the appellate an employer from withholding employment taxes court found a genuine issue of material fact. from an employee's benefits. The appellate court Consequently, it concluded the circuit court noted that while other statutes or regulations may wrongly entered summary judgment for plaintiffs prohibit tax withholding from disability benefits, and remanded the case.❖ © 2024 REIMER DOBROVOLNY & LABARDI PC 3 67 of 72 Page 29 of 34 The Pension Board denied Blasz’s application for Decade Old Motor Vehicle Accident Not duty disability benefits, because it found no Casually Related to Disability evidence that plaintiff was engaged in a police activity involving special risk not assumed by Blasz v. The Retirement Board of the Policemen’s citizens in the ordinary walks of life. Annuity and Benefit Fund of Chicago, 2024 IL App (1st) 231406-U Blasz filed a petition for administrative review in the Cook County Circuit Court. The Circuit Court Michele Blasz applied for duty disability benefits reversed and remanded with instructions for the related to injuries to her neck and the left side of Pension Board to make an express finding on her back. On July 29, 2008, Blasz performed causation. The Pension Board again denied Blasz undercover “controlled buys” of narcotics. duty disability benefits, and she again sought Afterwards, Blasz drove back to the police station. administrative review. The Circuit Court affirmed Blasz testified her responsibility was like a regular the Pension Board, and Blasz appealed. patrol officer during the drive back to the police station but acknowledged she also provided The First District Appellate Court held the Pension security to the other officers. Blasz was rear-ended Board’s decision was not against the manifest while waiting to turn into the police parking lot. weight of the evidence. It relied on Dr. Levin’s She sustained injuries in the accident and sought opinion Blasz required no additional treatment, medical treatment but continued to work until Blasz worked for 10 years after the accident, and September 6, 2019. She then sought duty disability Dr. Bergin’s notes contained qualifying language benefits. and assumptions due to a lack of treatment between 2009 to 2019. Taken together, the Appellate Court On February 25, 2021, the Retirement Board of the held the Pension Board’s decision was supported Policemen’s Annuity and Benefit Fund of Chicago by the record. (“Pension Board”) held a hearing and denied Blasz’s duty disability application but granted her The Appellate Court did not address whether ordinary disability benefits. Blasz’s injury was sustained in an “act of duty.” Because it found Blasz’s disability was not casually Blasz’s hearing revealed she continued to suffer related to the July 2008 motor vehicle accident, the symptoms since her July 2008 accident. In a letter issue of whether the accident was an “act of duty” dated August 2, 2008, Dr. Ari Bernstein opined was rendered moot. ❖ Blasz suffered from thoracic, cervical, and lumbar strains from her July 2008 accident. In September FPIF Updates Rules on Cash Management 2019, Dr. Christopher Bergin opined Blasz had & Cost Allocation been “persistently symptomatic” since her accident. Blasz was also diagnosed with multiple On August 2, 2024, the Firefighters’ Pension sclerosis. In July 2020, Blasz underwent cervical Investment Fund (FPIF) adopted changes to its surgery. Dr. Bergin opined Blasz’s symptoms were rules for cash management and cost allocation to related to her July 2008 accident. participating Funds. The change to the cash management rules simply recommends funds The Pension Board retained Dr. Jay Levin to comply with recent guidance from the DOI on local perform an independent medical examination of cash management providing monies not needed Blasz’s cervical spine. Dr. Levin opined Blasz was imminently to make benefit payments or cover “approximately 50% improved since her date of expenses should be kept for investment at FPIF and injury.” Dr. Levin opined the accident was not in a local account. unrelated to Blasz’s multiple sclerosis diagnosis and determined Blasz could work limited, light The FPIF rule on cost allocation dictates how duty, and required no additional treatment. operating costs of the FPIF are shared amongst participating funds. An amendment to that rule © 2024 REIMER DOBROVOLNY & LABARDI PC 4 68 of 72 Page 30 of 34 provides, “Specific costs that are incurred by FPIF interpreted this requirement to mean a meeting held to address or accommodate the needs or challenges in an “ill-suited, unaccommodating, or of, or circumstances caused by, a particular unadvantageous place” may violate the OMA even Participating Pension Fund or group of particular though the public was not per se prohibited from Participating Pension Funds, which are not, in the attending. (See Gerwin v. Livingston County Bd., determination of the Executive Director, customary 345 Ill.App3d 352 4th Dist. 2003). The public for the typical needs, challenges, or circumstances body is not required to make any necessary change of a Participating Pension Fund, and which the to accommodate large crowds, but courts have Executive Director determines should not or cannot required “reasonable accessibility”. in fairness be allocated proportionately among all Participating Pension Funds as described in Section Applying these requirements to the situation in 9-2(b), will be allocated to that particular Dolton, the PAC found the Village had ample Participating Pension Fund or group of particular advance notice a large crowd would attend the Participating Pension Fund (sic).” meeting making the regular meeting space insufficient. In response, the Village made no Obviously, the text of this rule seems intentionally effort to increase accessibility by moving to a larger vague and gives broad discretion to the Executive Director. How it will be employed remains to be room or offering a live stream from another seen but at first blush, it seems to be directed at location. While the Village suggested the those funds who participated in the consolidation restrictions were necessary due to threats made lawsuit as an effort to force any costs borne by FPIF against the Mayor and members of the Board, scant in that litigation onto the plaintiff firefighter evidence in support of that conclusion was pension funds. Both rules are available for review provided. As a result, the PAC found the Village of the FPIF website.❖ Board had violated the OMA by failing to move the meetings to a larger room or offer an alternative Public Meetings Must be “Convenient and overflow room or make any effort at all to Open” to the Public accommodate the large crowd of which it had advance notice. Public Access Opinion 24-010 In the pension board context, large crowds are rare. Recent events in the Village of Dolton have made However, inasmuch as few people regularly attend, numerous headlines and resulted in this binding some regular meeting locations may be small even opinion from the Public Access Counselor (PAC) for the usual attendees. Special meetings such as at the Attorney General’s Office finding the Village disability hearings may bring a larger crowd. It is Board violated the Open Meetings Act (OMA) by important for pension boards to be mindful of both restricting access to several meetings. capacity and access restrictions to ensure any The complaining parties in this case alleged that at meeting is “convenient and open” to anyone multiple recent meetings of the Village Board, wishing to attend. ❖ numerous restrictions were put in place to prevent Agenda Specificity & Remote Attendance a significant number of public from attending. Under the Open Meetings Act They alleged roads were blocked, parking was restricted, and a capacity of 45 persons was applied Public Access Opinion 24-007 for the Board meeting room. In response, the Village suggested the restrictions were a necessary The Public Access Counselor (PAC) at the Attorney safety precaution. General’s Office recently issued a binding opining giving public bodies guidance on two aspects of the Under the OMA, public meetings must be held at Open Meetings Act (OMA). A complaint was filed “times and places which are convenient and open with the PAC alleging the Village of Princeville to the public”. (5 ILCS 120/2.01). Courts have Board of Trustees violated the OMA when it © 2024 REIMER DOBROVOLNY & LABARDI PC 5 69 of 72 Page 31 of 34 approved a vehicle purchase without specifically How does this apply to your pension board listing that item on the agenda and allowing the operations? First, it is important to ensure any Board President to remotely attend several agenda posted at least 48 hours in advance meetings. sufficiently identifies any action items. As for remote attendance, it is important to note a few At a meeting in March 2024, the Board approved additional requirements. First, in order for a purchase of a truck for the public works member to participate remotely a quorum (3 department. The agenda simply stated, “Report members in the case of a pension board) must be from the Superintendent of Public Works”. The physically present. The member wishing to attend Board agreed this agenda item was insufficient to remotely must be unbale to physically attend due to support its action purchasing the truck at the March one of the reasons enumerated above. Finally, the meeting. It subsequently specifically listed an Board must make a motion to allow the member to agenda item for purchase of the truck at its April participate remotely in accordance with its rules.❖ 2024 meeting and re-voted to approve purchase of the truck. The PAC noted the OMA provides Shifting Arguments Midstream Cannot agendas must “set forth the general subject matter Overcome Denial of Duty Disability of any resolution or ordinance that will be the subject of final action at the meeting.” (See 5 ILCS Rose v. Ret. Bd. of Firemen's Annuity & Benefit 120/2.02(c)). As a result, the Board violated the Fund of Chicago, 2024 IL App (1st) 231717-U OMA when it approved the truck purchase at its March meeting, but any violation was subsequently Plaintiff was employed by the Chicago Fire cured when it was specifically listed and re-voted Department (CFD) in August 2006. She filed an on the purchase at the subsequent meeting. application for duty disability benefits, alleging that during retraining on February 18, 2021, she As for the remote attendance issue, the Village “flew backwards to the ground,” hit her head and President was employed by the United States Postal shoulder on the concrete floor and lost Service. In this capacity, he frequently traveled and consciousness for “a few seconds.” As a result, she as a result, attended multiple Village Board was diagnosed with “Concussion, Post concussion meetings remotely. While the OMA allows for syndrome, rt rotator cuff tendinitis, full thickness rt remote attendance, the member attending remotely rotator cuff repair (9/14/21) and migraines.” must be unable to attend in person due to (1) Plaintiff also claimed to experience various personal illness or disability, (2) employment neurological issues from the fall. While the record purposes or the business of the public body, (3) a reflected plaintiff had a sprained right shoulder in family or other emergency, or (4) unexpected late 2006, it was devoid of any details regarding childcare obligations. (See 5 ILCS 120/7(a)). In that injury, i.e., how it occurred, how it was treated, this case, the Village President argued he was or the severity of the issue. precluded from physically attending due to employment purposes. The OMA does not define, At the disability hearing, plaintiff provided treating and no cases have interpreted the meaning of physician’s’ reports that causally connected her “employment purposes” under this Section of the shoulder injury and subsequent surgery to the OMA. The PAC approved of the President’s February 2022 incident. However, another treating remote attendance in these situations. Specifically, physician indicated her shoulder’s condition was of it found, “actions in the course of executing a “indeterminate chronicity.” Additionally, the person’s job responsibilities fit the plain and Pension Board’s consulting physician noted ordinary meaning of “employment purposes” under applicant’s reported “delayed onset right shoulder Section 7(a)(ii) of the OMA. It follows that a pain” following the February 2021 fall, pointing public body member’s conflicting obligation to his out reports of “mild right shoulder pain,” and her employer is an employment purpose.” right shoulder examination was “normal.” He further cast doubt on applicant’s claims that © 2024 REIMER DOBROVOLNY & LABARDI PC 6 70 of 72 Page 32 of 34 repeated overuse or a contusion from the 2021 fall The appellate court affirmed the Pension Board's caused or contributed to the need for surgery. denial of duty disability benefits where the evidence supported the Board’s determination The Board’s physician ultimately opined plaintiff plaintiff's shoulder surgery was not caused by a needed surgery due to “chronic degenerative duty-related incident. In its decision, the appellate shoulder problems,” and the results of the surgery court re-iterated the burden of proof is on the caused her inability to return to work, as there was applicant, the appellate court will only consider the “no question” she lacked adequate range of motion board’s decision and the evidence and arguments or strength to do the work. In other words, while presented, and that it, under the manifest weight disabled, there was no connection to the fall as standard, will not re-weigh the evidence as long as applicant claimed. there is some evidence to support the Board’s decision. The Board voted to deny duty disability benefits, finding the “weight of the medical evidence in the The appellate court found the applicant did not record,” including the manner of plaintiff's fall, the challenge the Board's finding her disability resulted lack of findings of a shoulder injury immediately from the September 2021 surgery to treat a chronic after the incident, and the delay in reporting shoulder condition, nor did she challenge the denial shoulder symptoms, showed plaintiff had of duty disability benefits based on any head- “degenerative pre-existing tears in her right related condition sustained from the fall on shoulder.” The Board found plaintiff's surgery was February 18, 2021. Plaintiff solely argued on “the cause of her current limitations in the appeal that the Board failed to consider plaintiff functioning of her right shoulder,” and the fall on sustained a prior duty injury to her right shoulder in February 18, 2021, did not cause the need for that November 2006, which “likely” caused the surgery, but “was necessitated by the degenerative degeneration leading to her surgery and current condition she already had in her right shoulder prior disability. This was a new argument, as the 2006 to February 18, 2021.” injury was not raised substantively before the Board. The appellate court found this new Plaintiff filed a complaint for administrative review argument was simply not supported in the record or with the circuit court. In her brief before the circuit the proceedings before the Board. It found plaintiff court, plaintiff stated she had suffered a sprained failed to meet her burden, as she presented no right shoulder while on duty on November 29, argument or evidence her current disability was the 2006. She asserted the Board “failed to consider result of a duty-related injury that occurred in that [she] did in fact sustain a prior duty injury to November 2006. her right shoulder in November 2006, which likely caused the degeneration leading to her surgery and Plaintiff was essentially attempting to shift her current disability.” burden onto the Board, suggesting it was the Board's burden to inquire further into the The circuit court entered an order affirming the November 2006 incident. However, it is black- Board's decision, finding the Board's determination letter law that plaintiff, not the Board, must show a of fact that plaintiff's shoulder injury resulted from duty-related accident was a causative factor chronic degeneration and surgery, not from her fall contributing to her current disability.❖ on February 18, 2021, was not against the manifest weight of the evidence. The court also found plaintiff did not raise before the Board her preexisting 2006 injury that was exacerbated by the February 2021 training incident. The court stated it could not consider new or additional evidence not presented to the Board. © 2024 REIMER DOBROVOLNY & LABARDI PC 7 71 of 72 Page 33 of 34 Suggested Agenda Items for January (or 1st • Annual verifications of eligibility for Quarter) beneficiaries. • Approval of annual COLA increases. • Review/update contracts with vendors (accountants, actuaries, attorneys, • Semi-annual review of closed executive investment managers/advisors or session minutes to determine if needs to consultants). remain confidential. • Obtain predatory lending certification • Determine need for election of beneficiary forms from Illinois regulated banks. and active Trustees and/or re-appointment of appointed Trustees – request for re- • Determine status/need for extension of appointment of appointed Trustees. Letter of Credit or alternative collateralization for Pension Fund • Schedule annual examinations for disabled operating accounts. firefighters/police officers under age 50. REIMER DOBROVOLNY & LABARDI PC NEWS • September 24-26, 2024, RDL managing partner Rick Reimer attended the Force Science Conference in Chicago. • September 24-27, 2024, RDL partners Brian LaBardi and Vince Mancini attended and presented at the IPPFA MidAmerican Pension Conference in Lincolnshire. • November 1, 2024, RDL partner Brian LaBardi will present at the IPFA fall conference in Addison. Legal and Legislative Update Volume 25, Issue 4, October 2024 This publication constitutes advertising material. Information contained herein should not be considered legal advice. Legal and Legislative Update is published periodically. Questions may be directed to: REIMER DOBROVOLNY & LABARDI PC 15 Spinning Wheel Road, Suite 310, Hinsdale, IL 60521 (630) 654-9547 Fax (630) 654-9676 www.rdlaborlawpc.com Unauthorized reproduction prohibited. All rights reserved. © 2024 REIMER DOBROVOLNY & LABARDI PC 8 72 of 72 Page 34 of 34