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Police Pension Packet 2009 08-25-09 Yorkville Police Pension Fund Board 804 Game Farm Road Yorkville, 1160560 (630) 553-4340 5:00PM on Aug 25, 2009 Police Department Conference Room REVISED: 8124109 Agenda Meeting Call to Order: Roll Call: Previous Meeting Minutes: June 2, 2009 Communications: At the June 2°d meeting the Public Pension Funds Compliance Fee of$526.31 was paid on check#202. Monthly Treasurer's Report: as of July 31, 2009 Bills for Payment: MVT management fees: From Schwab#3137-9036 (Jan-April) $6258.00 Cary Collins: Attorney(July-Sept 09) $650.00 Tim W. Sharp Actuary(Check#204) $1500.00 Kelly Zabinski IDOI filing: Partial Payment $650.00 1D0I Compliance Fee: (Check#202) $526.31 Dan Pleckham: Conference Fee $100.00 William Powell $262.50 Total Bills for Payment: $9946.81 Investments: Money transfers from YNB to Charles Schwab & Co Pay to: Charles Schwab & Co. Mail to: Institutional Client Service Group P. O. Box 628290 Orlando, F132862-9906 Progress Reports from Mitchell, Vaught, and Taylor Unfinished Business: IDOL Filing progress SB 1974: Annual Training for Pension Board Trustees Officer Pleckharn to report on the June 4"' and 5h conference. House Bill 4603: Creditable Service: Buyback Letters for file. Officer Pleckham will follow up. Police Pension Fund Board August 25, 2009 Page 2 Unfinished Business (con't): Officer Pleckham to review personnel files: The review is in progress. Illinois Public Pension Fund Association membership (IPPFA) Discussion of the Investment Policy and the Rules and Regulations New Business: Additional Business: Next meeting: Motion to Adjourn: Year 2009 Meeting Dates: Feb 10, May 21, Aug 11, Nov 10 w cIT� United City of Yorkville 800 Game Frame Road Yorkville, Illinois 60560 Phone 630-553-1887 Fax: 630-553-7575 Treasurer's Rewrt (As of July 31, 20091 Dollars Percent Cash: YNB (1) 90,875.71 Schwab(Includes 12,172.55 cash accrued) 144,732.00 Total Cash: $235,607.71 7.8% Schwab: (3) Fixed Securities: 1,473,217.00 49.0% Equities: (2) 1,299,627.00 43.2% Total Assets: 3,008,451.71 100.00% 2008 Tax Levy Estimate $325,000.00 Tax Levy monies to be received on 8125109: $12,148.51 Estimated monthly deposits: $15,000.00 Estimated monthly retiree payments: $ 9500.00 i zz' William Powell Treasurer United City of Yorkville (1) The board has established a$40,000.00 minimum balance (2) The maximum equity percent is 45%by statue (3) Schwab accounts rounded to the nearest dollar. File:T Report 073109.doc Offices of Cary J. Collins, AC. Invoice 2200 West Higgins Road Suite 155 Hoffman Estates, IL 60169 Date Invoice# Telephone 847-519-0010 Fax 847-519-0016 6/15/2009 5047 Bill To Yorkville Police Pension Board Atten:Chief Harold Martin 804 Game Farm Road Yorkville IL 60560 Terms Due on receipt Description Amount Quarterly retainer for the months of 650.00 JULY,AUGUST&SEPTEMBER,2009 Total $650.00 Please make checks payable to the LAW OFFICES OF CARY J.COLLINS Payments/Credits $0.00 Balance Due $650.00 Timothy W. Sharpe Actuary 1816 Allen Drive Geneva,Illinois 64134 630)262-0600 Pax(630)262-0699 February 27, 2009 Chief Harold Martin City of Yorkville Police 804 Game Farm Road Yorkville, IL 60560 Re; Invoice for Services Rendered During December through February subsequent invoice sent 615) Completion of May 1,2008 Actuarial Valuation for the City of Yorkville Police Pension Fund; Completion of Benefit Statements for Police Officers 1.500 JUN.H 2009 Np maw 70-70719 204 YORKVILLE POLICE PENSION FUND 620812 804 GAME FARM RD. q YORKVILLE, IL 60560 DATE V i PAY TO THE W J-5 a OR ER OF n l p77DVARS 0 Old Second c old Second N600nal Bank 1630-891-0202 . gyp MEMO rG 2 Zabinski Consulting Services, Inc. Invoice 7 P.O. Box 6534 Aurora, IL 60598-6534 Invoice#: 523 Invoice Date: 6/30/2009 Due Date: 7/30/2009 Bill To: Yorkville Police Pension Fund Attn: Mr.William Powell 800 Gamefarm Road Yorkville, IL 60560 Description Amount Progress billing for the annual Illinois Department of Insurance filing 650.00 for fiscal year ended April 30, 2009. Total $650.00 Phone# Payments/Credits $0.00 (630)939-7668 Balance Due $650.00 ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION DIVISION OF INSURANCE DATE : 05/08/2009 INVOICE NO : F11529 YORKVILLE POLICE PENSION FUND TOTAL: $526.31 FY 2010 Compliance Fee Total Assets $2, 531, 594.31. P03834 NOTICE PUBLIC PENSION FUNDS COMPLIANCE FEE Public Act 93-32, effective July 1, 2003, (40 ILCS 5/1A-101 et seq.) provides that any pension fund that is required to file an annual statement is also required to pay an annual compliance fee of .0002 of the total assets of the fund, not to exceed an amount of $8,000. The annual compliance fee is due June 30 of the current calendar year. The Department is requiring that the annual compliance fee be submitted and paid by check. In order for the Department to meet the State requirements associated with accepting checks, certain procedures must be followed. One such procedure is the issuance of an invoice to each and every pension fund. The invoice number should be referenced on your check upon payment. Please detach the bottom portion of the invoice and return with payment. Please note that the invoice indicates 'Payment Due Upon Receipt, Interest May Be Assessed After'30 Days" but such language does not affect the due date of June 30, as established in 40 ILCS 5/1A-112 and should be disregarded. The check should be made payable to the Illinois State Treasurer and should be submitted on or before June 30 of the current calendar year. Additionally, the check must be sent to the attention of The Department of Financial and Professional Regulation, Division of insurance, P.O. Box 7087, Springfield, Illinois 52791 and not the Pension Division. Failure to submit the annual compliance fee payment on or before June 30 of the current calendar year or to make payment in the amount owed, as indicated on the invoice, is a violation of 40 ILCS 5/1A-112 and 50 Ill. Adm. Code 4415. Any discrepancies in the calculated annual compliance fee, as indicated on the invoice, should be reported to the Pension Division within 15 day@ of receipt of this notification. This invoice serves as your notification pursuant to 50 111. Adm. Code 4415.50. If gxt SHOW INVOICE NUMBER (F11529) ON REMITTANCE. DETACH BOTTOM PORTION AND RETURN WITH RENaTTANCE. � 'A Pr-"-� L- Police Pension Accounting Services Log - Vate Acttvfty Hours Ldp /0--t NRcr fGA. M ocl'}+61 PA-aPArAA k, t a i L C L V-1 n EL fit: ca - S V AM t n mAir_ F►Lin,G b �- c+�.t�tc a"J. &- - o T ,3 PL Cra Fisq-,o ac ti a o r S t7 /LC Arm t 1,Arta a c]—If Q (, � Q - N-1-= 0 09 i6IIAS 0 C 0 " M E gre 4 a(. 6 gW a 6 r I v= e*AV 6e-V v`a Ir - e Y F Ma v TO Q na E e'r.A.A of _;O L4 S 'LwvVuA.T , O s e U.,T- [Le-v& 014& -3 ( moo A-L C ewIA- FA—AP Z e o f ev , a Agenda, Meeting Mintues Employee contributions, YNB Bank, Merrill Lynch data entry Quarterly member contributions letters State of Illinois intemet filing for fiscal year end file: Police Pension Time Log.xls E-Help 7-09 8. BREAK IN POLICE PENSION SERVICE Q: We have a newer police officer who will be out on a medical break in service to have a non work related surgery. She is not eligible to receive benefits under the Village's Disability Ordinance due to her short length of service with the Village. This will be a non paid leave of absence. Is there any way for her to be able to buy this time for police pension purposes or is it a break in service? Most other officers in this situation draw on sick time, etc. and therefore pay their full amount into the pension. A: Since she will be out on a medical leave, after she has came back and worked that amount of time, she can make the contributions she would have made if she had been working. Michael Langenfeld Administrative Compliance Officer Department of Financial &Professional Regulation Pension 9. TAXABILITY OF DISABILITY PAY I am looking for information on disability pay from police pension fund for police officer on maternity leave. Our employee contributions are after tax- so how would I calculate the taxable portion of the disability payment? We have not had to deal with this issue before. Thank you., Jaye Quimby Village ofRockton jquimby @lmgcpa.coma 10. COALITION UPDATE The Coalition minimum goal is to collect voluntary contributions from 75% of the police & fire pension funds, presently 62% of the police & fire pension funds have contributed. I am happy to report that 71% of IMTA's members have made the voluntary contribution. From the information that I have received, I believe the pension funds listed below have NOT paid. We only need 8 more finds to pay for MIT members to reach the minimum goal. Please review the list. If you have a pension fund on the list please review your records to determine that your check has cleared the bank. If you find that you have paid, please contact me and I will get hold of the Coalitions accounting service. If your fund has not made the payment, please strongly encourage your pension board to participate Please mail your$400 voluntary contribution made payable to Coalition for Qualified Plan Status, P.O. Box 1486, Warrenville, IL 60555-1486 Thank you for your consideration and support! Michael Peterson 847.986.3223 The Coalition's financial reports relating to the project can be found at http://wxvw.latiterbacharnen.conVnewsletter.html UNPAID VOLUNTARY CONTRIBUTIONS ALGONQUIN/LAKE IN THE HILLS FPD FIREFIGHTERS PENSI ALSIP FIREFIGHTERS PENSION FUND ANTIOCH POLICE PENSION FUND ARLINGTON HEIGHTS FIREFIGHTERS PENSION FUND ARLINGTON HEIGHTS POLICE PENSION FUND BELVIDERE FIREFIGHTERS PENSION FUND BELVIDERE POLICE PENSION FUND BRADLEY FIREFIGHTER'S PENSION FUND BRADLEY POLICE PENSION FUND CARPENTERSVILLE FIREFIGHTERS PENSION FUND CARPENTERSVILLE POLICE PENSION FUND CHATHAM FPD FIREFIGHTER'S PENSION FUND CHERRY VALLEY POLICE PENSION FUND CHICAGO HEIGHTS POLICE PENSION FUND COLONA POLICE PENSION FUND COLUMBIA POLICE PENSION FUND CREVE COEUR POLICE PENSION FUND EAST ST LOUIS POLICE PENSION FUND FAIRFIELD FIREFIGHTERS PENSION FUND FAIRFIELD POLICE PENSION FUND FOX RIVER GROVE FPD FIREFIGHTERS PENSION FUND FOX RIVER GROVE POLICE PENSION FUND FRANKLIN PARK FIREFIGHTERS PENSION FUND FRANKLIN PARK POLICE PENSION FUND GLENCOE POLICE PENSION FUND HAMPSHIRE FPD FIREFIGHTERS PENSION FUND HOOPESTON POLICE PENSION FUND HUNTLEY POLICE PENSION FUND ISLAND LAKE POLICE PENSION FUND LAKE BLUFF POLICE PENSION FUND LAKE FOREST POLICE PENSION FUND LEMONT POLICE PENSION FUND LITCHFIELD FIREFIGHTERS PENSION FUND LITCHFIELD POLICE PENSION FUND LOCKPORT POLICE PENSION FUND LOVES PARK POLICE PENSION FUND LYNWOOD POLICE PENSION FUND MARKHAM FIREFIGHTERS PENSION FUND MARKHAM POLICE PENSION FUND MONTICELLO POLICE PENSION FUND NORTH PALOS FPD FIREFIGHTERS PENSION FUND ORLAND PARK POLICE PENSION FUND PALOS HEIGHTS POLICE PENSION FUND DANA POLICE PENSION FUND PEKIN FIREFIGHTERS PENSION FUND PEKIN POLICE PENSION FUND PLANO POLICE PENSION FUND RIVERDALE POLICE PENSION FUND ROCKTON POLICE PENSION FUND SOUTH BARRINGTON POLICE PENSION FUND STERLING FIREFIGHTERS PENSION FUND SWANSEA FIREFIGHTERS PENSION FUND SWANSEA POLICE PENSION FUND VANDALIA POLICE PENSION FUND WAUCONDA POLICE PENSION FUND WILLOW SPRINGS POLICE PENSION FUND YORKVILLE POLICE PENSION FUND 11. Winnetka's Pension Resolution (forwarded with Doug William's permission) Colleagues: At its May 191h meeting, the Winnetka Village Council unanimously adopted the attached resolution "urging the General Assembly to stop enacting pension enhancements, to protect police and fire pensions, and to adopt meaningful pension reform." Winnetka has a long and consistent track record of funding the annual actuarial amounts for the police and fire pension funds. Sometimes, the Village funds a bit more than the recommended amount. Thus, Winnetka's growing unfunded liability is not a result of the Village underfunding its pension obligations. Instead, Winnetka's increasing unfunded liability is a result of: 1. Losses in the capital markets; 2. Arbiters authorizing wage adjustments above the CPI, which increase the final rate of pay which, in turn, determines the ultimate pension received by a fire fighter or police officer; 3. Additional pension benefits authorized by the General Assembly. Section 2 (b) of the Resolution urges the General Assembly to "stop approving any new or enhanced police and fire pension benefits." As the current legislative session comes to a close, the Winnetka Village Council strongly urges the State Legislators to vote against any pension enhancements in order to avoid increasing Winnetka's unfunded pension liability even more! Specifically, they have been asked to vote against the following bills: 1. House Bill 923 - act of duty disability for any injury including those completely unrelated to the act and duty of firefighting; 2. House Bill 650 - allowing retired firefighters to reenroll in the municipal insurance program after previously declining that ability; 3. House Bill 1041 - a retroactive pension benefit increase; and 4. Senate Bill 1827 - special legislation that would cost Barrington taxpayers $1.8 million. Section 2 (f) urges the State Legislature to "reset the current pension amortization schedule from 2033 to a reasonable period in order to provide for a lesser pension levy increase in the year 2010 and beyond, that will help to mitigate the immediate impact on taxpayers." The Village Council strongly urges the Legislators to adopt Senate Bill 2011 that would provide an average of $700,000 in budget relief per municipality that could be used to avoid tax increases and/or preserve municipal employment. The Associated Fire Fighters of Illinois (AFFI) have submitted an amendment that would prohibit fire fighters layoffs and reduce the budgetary and taxpayer relief to one year instead of two. The Village of Winnetka is strongly opposed to the AFFI amendment as many municipalities are facing tough budgetary pressures and may need to layoff police officers, public works employees, and/or fire fighters. City Councils should be making these gut-wrenching decisions on behalf of their taxpayers and employees and not the AFFI in Springfield. While not being considered during the current legislative session, the Winnetka Village Council strongly believes that the time has come to adopt meaningful pension reform. Section 2 of the attached Resolution also urges the General Assembly to: 1. Maintain current pension benefits for all current police officers and firefighters. 2. Change the membership of fire and police pension boards so that the taxpayer representatives outnumber the employee representatives. 3. Consider whether local investment authority should be broadened to allow for police and fire pension funds to invest up to 60% of their assets in common stock as long as a professional, independent investment advisor is retained by the local board. a. Allow the municipality the right to present evidence and testimony at all police and fire pension board meetings. 5. Modify the current collective bargaining laws by enacting a provision similar to a Wisconsin law specifying that mandatory arbitration is not allowed if the employer offers a cost of wage adjustment that equals the change in the consumer price index with an appropriate maximum salary adjustment and factoring in the cost of health insurance. 6. Work toward a comprehensive stabilization plan and meaningful pension reform that would create new pension systems for all public safety and also non-public safety employees hired after some specific date in the near future. .. The reason the Village urges a change in the membership of pension boards is due to the previous Deferred Retirement Option Plan (DROP) proposals that would have delegated the DROP decision to the pension boards where the employee representatives outnumber the taxpayer representatives. Thus, if this or similar legislation is ever adopted, a local pension board could make a decision that would increase the unfunded pension liability, thereby forcing an increase in taxes. Simply stated, the current governance structure for pension boards creates the possibility of taxation without representation. Regarding a second tier pension system, the Village has no specific recommendations and lists some ideas that should be taken into consideration. The Village Council believes it is time to begin a conversation about meaningful pension reform, and the suggestions in the resolution are for discussion purposes only. The Village's ideas and other suggestions must be vetted in the "marketplace of ideas." Just so you know, Winnetka's Village President Tucker also sent a similar email to various Mayors and Village Presidents. Doug Williams, Winnetka Village Manager, DWiliiams @winnetka.org