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
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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.
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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