Police Pension Board of Trustees

MINUTES OF A REGULAR MEETING OF THE ROCK ISLAND POLICE PENSION FUND BOARD OF TRUSTEES JANUARY 24, 2024 A regular meeting of the Rock Island Police Pension Fund Board of Trustees was held on Wednesday, January 24, 2024 at 4:30 p.m. in the Rock Island Police Department Roll Call Room located at 1212 5th Avenue, Rock Island, Illinois 61201, pursuant to notice. CALL TO ORDER: Trustee Morris called the meeting to order at 4:31 p.m. ROLL CALL: PRESENT: Trustees Aaron Curry (May 2025), Kondon Karzin (May 2025), James Morris (May 2024), Tim Muehler (May 2025) and Jessica Sager (April 2025) ABSENT: None ALSO PRESENT: Attorney Nemura Pencyla, Reimer Dobrovolny & LaBardi PC; Sara Gutierrez, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: January 22, 2020 Closed Session, January 20, 2021 Special Meeting Transcript and Closed Session and January 9, 2023 Closed Session and October 25, 2023 Regular Meeting: The Board reviewed the January 22, 2020 closed session minutes, the January 20, 2021 special meeting transcript and closed session minutes, the January 9, 2023 closed session minutes and the October 25, 2023 regular meeting minutes. A motion was made by Trustee Morris and seconded by Trustee Muehler to approve the January 22, 2020 and the January 9, 2023 closed session minutes as written, the January 20, 2021 special meeting transcript and closed session minutes as prepared and the October 25, 2023 regular minutes as written. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Meeting Minutes: The Board reviewed the closed session meeting minutes. A motion was made by Trustee Morris and seconded by Trustee Muehler to approve the destruction of the closed session meeting minutes recordings upon the eligible dates of destruction. Motion carried by voice vote. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report and Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the twelve-month period ending December 31, 2023 prepared by L&A. As of December 31, 2023, the net position held in trust for pension benefits is $43,682,890.71 for a change in position of $3,863,959.94. The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal, Quarterly Deduction Report and Transfer Report for the period October 1, 2023 through December 31, 2023. The Board also reviewed the Quarterly Disbursement Report for the period October 1, 2023 through December 31, 2023 for total payments of $40,707.92. A motion was made by Trustee Morris and seconded by Trustee Sager to accept the Monthly Financial Report as presented and to approve payments in the amount of $40,707.92 as listed on the Quarterly Disbursement Report. Motion carried by roll call vote. AYES: Trustees Curry, Karzin, Morris, Muehler and Sager NAYS: None ABSENT: None Additional Bills, if any: There were no additional bills presented for approval. Discussion/Possible Action – Cash Management Policy: The Board discussed cash requisite for the purpose of remitting pension benefit payments and expenses and determined that no updates are required at this time. Rock Island Police Pension Fund Meeting Minutes – January 24, 2024 Page 2 of 4 INVESTMENT REPORT: IPOPIF – Verus Advisory, Inc.: The Board reviewed the IPOPIF Investment Performance Report Monthly Statement prepared by Verus Advisory, Inc. for the period ending December 31, 2023. As of December 31, 2023, the one-month total return is 4.6% and the year-to-date return is 13.7% for an ending market value of $10,001,345,755. State Street Statements: The Board reviewed the State Street Statement for the month ending December 31, 2023. The beginning value is $42,100,811.26, the ending value was $43,539,439.63, the month-to-date net return was 4.62% and the year-to-date net return is 13.66%. COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: The Board noted that L&A mailed Affidavits of Continued Eligibility to all pensioners in December and a due date of January 5, 2024. To date, 14 affidavits remain outstanding. L&A will mail second request affidavits to the outstanding pensioners and status updates will be provided to the Board as they become available. Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the County by the City by February 1, 2024. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2024. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and discussed upcoming training opportunities. Trustees were reminded to submit any certificates of completion to L&A for recordkeeping. Approval of Trustee Training Registration and Reimbursable Expenses: The Board discussed the upcoming 2024 IPPFA Illinois Pension Conference being held May 8, 2024 through May 10, 2024 in Galena, Illinois. A motion was made by Trustee Morris and seconded by Trustee Karzin to direct L&A to register Trustees interested in attending the event. Motion carried by roll call vote. AYES: Trustees Curry, Karzin, Morris, Muehler and Sager NAYS: None ABSENT: None APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Applications for Membership – Tory Caulkins, Christian Dimaano, Alex Gant, Anzuruni Kimba, Ian Lopez, Steven Speaker II and Kassie Williams: The Board reviewed the Applications for Membership submitted by Tory Caulkins, Christian Dimaano, Alex Gant, Anzuruni Kimba, Steven Speaker II and Kassie Williams. A motion was made by Trustee Muehler and seconded by Trustee Morris to accept Tory Caulkins effective June 12, 2023, Christian Dimaano effective March 28, 2023 and Alex Gant, Anzuruni Kimba, Steven Speaker II and Kassie Williams effective December 4, 2023 into the Rock Island Police Pension Fund as Tier II participants. Motion carried unanimously by voice vote. The Board noted that Ian Lopez resigned from the Rock Island Police Department effective January 4, 2024 and did not submit an Application for Membership for his effective date of March 27, 2023. The Board noted that Mr. Lopez has transferred to Coal Valley Police Department and a contribution refund has not been requested at this time. Updates will be provided as they become available. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Non-Duty Disability Benefit and Variance – Steven Marty: The Board reviewed the non-duty disability benefit calculation for Steven Marty prepared by L&A. Officer Marty had an entry date of September 8, 2008, disability date of December 15, 2018, effective date of pension of December 17, 2018, 34 years of age at date of disability, 10 years of Rock Island Police Pension Fund Meeting Minutes – January 24, 2024 Page 3 of 4 creditable service, applicable salary of $69,635.07, applicable pension percentage of 50%, amount of originally granted monthly pension of $2,901.46 and amount of originally granted annual pension of $34,817.52. The Board reviewed the retro benefits variance for Steven Marty prepared by L&A. The retro pension benefit due to Mr. Marty for the period December 17, 2018 through July 31, 2023 is $160,984.23. A motion was made by Trustee Muehler and seconded by Trustee Curry to approve Steven Marty’s non-duty disability benefit calculated by L&A and the variance calculation as reviewed. Motion carried by roll call vote. AYES: Trustees Curry, Karzin, Morris, Muehler and Sager NAYS: None ABSENT: None Review, Adopt and Publish Decision and Order – Steven Marty: The Board reviewed the Decision and Order prepared by Reimer Dobrovolny & LaBardi PC. A motion was made by Trustee Muehler and seconded by Trustee Sager to approve, adopt and publish the Decision and Order for Steven Marty as presented. Motion carried by roll call vote. AYES: Trustees Curry, Karzin, Morris, Muehler and Sager NAYS: None ABSENT: None Deceased Pensioner – Scott Lewis/Approval of Surviving Spouse Benefits – Gail Lewis: The Board noted that Scott Lewis passed away on October 26, 2023. The Board reviewed the surviving spouse benefit calculation for Gail Lewis with an effective date of October 27, 2023 for a monthly benefit of $3,069.58 with no additional increases. A motion was made by Trustee Karzin and seconded by Trustee Muehler to approve the surviving spouse benefit of Gail Lewis calculated by L&A. Motion carried by roll call vote. AYES: Trustees Curry, Karzin, Morris, Muehler and Sager NAYS: None ABSENT: None OLD BUSINESS: Review/Approve – Fiduciary Liability Insurance Renewal: The Board reviewed the fiduciary liability insurance renewal provided by Hudson through Alliant Insurance Services, Inc. A motion was made by Trustee Morris and seconded by Trustee Muehler to approve payment of the fiduciary liability insurance renewal effective January 31, 2024 through January 31, 2025 in the amount of $7,308. Motion carried by roll call vote. AYES: Trustees Curry, Karzin, Morris, Muehler and Sager NAYS: None ABSENT: None NEW BUSINESS: Discussion/Possible Action – Portability Updates – Daniel Johnson and Zachary Stokas: The Board discussed Zachary Stokas’ transfer of creditable service from the Rock Island Police Pension Fund to the Aurora Police Pension Fund and noted that the calculation is in process. Further discussion will be held at the next regular meeting. The Board discussed Daniel Johnson’s transfer of creditable service from the Rock Island Police Pension Fund to the Milan Police Pension Fund and noted that the calculation is in process. Further discussion will be held at the next regular meeting. Approve Annual Cost of Living Adjustments for Pensioners: The Board reviewed the 2024 Cost of Living Adjustments calculated by L&A. A motion was made by Trustee Muehler and seconded by Trustee Sager to