McHenry Times

City of Woodstock Police Pension Board of Trustees Met April 13.

Here is the minutes provided by the board:

A meeting of the Board of Trustees of the Woodstock Police Pension Fund was called to order by President Dennis Leard at 6:02 p.m., via video conference in accordance with Section 6 of Governor Pritzker’s Executive Order 2020-07 (COVID-19 Executive Order No. 5). The call of this meeting is to cover items set forth in the agenda that was posted with the meeting notice. Notice of this hearing was posted forty-eight hours in advance at the Woodstock City Hall and Woodstock Police Department. All media was notified of this meeting. All Board members were notified of this meeting. A roll call was taken.

Board Members Present: Dennis Leard, Terri Abrams, Gordon Knapp and Joshua Fourdyce.

Board Members Absent: Jeremy Mortimer.

Others Present: Carolyn Welch Clifford, Attorney, Ottosen DiNolfo; Paul Christensen, Woodstock City Finance Director; David Wall, Wall Capital Group and Kathleen Phillips, Administrative Assistant to the Fund.

APPROVAL OF MINUTES: Motion by Trustee Abrams to approve the minutes from the regular quarterly meeting of January 12, 2021. Seconded by Trustee Knapp. A roll call was taken.

Ayes: Dennis Leard, Terri Abrams, Gordon Knapp and Joshua Fourdyce.

Nays: None.

Abstentions: None.

Absentees: Jeremy Mortimer.

Motion carried.

ACCOUNTANT/TREASURER’S REPORT: Mr. Christensen reviewed the financial statements, which reflects the funds held by the City and invested funds. Mr. Christensen also covered items listed on the Payroll Warrants and Warrants list which includes payouts regarding Steven Gorski. Mr. Gorski passed away on February 5, 2021, and his surviving daughter will receive his benefits for two months, at which time she will turn eighteen and any benefits will cease.

Motion by President Leard to approve payment of the expenses reflected on the Warrant List. Seconded by Trustee Abrams. A roll call was taken.

Ayes: Dennis Leard, Terri Abrams, Gordon Knapp and Joshua Fourdyce.

Nays: None.

Abstentions: None.

Absentees: Jeremy Mortimer.

Motion carried.

Mr. Christensen made a request to the Board that the minutes be turned in to him within roughly a month’s time so they may be included in the City Council packets. They may be labeled as “draft” if necessary. Attorney Clifford would like to review them before they are submitted and that no draft version of the Board’s Minutes should be displayed on the City’s website. Attorney Clifford also warned against giving out draft minutes to a FOIA request.

Mr. Christensen reported that the Department of Insurance’s Annual statement is usually finished in June and the auditors have already been scheduled. Attorney Clifford pointed out that there are a few more interrogatory submissions necessary for this report that may require some information from this Board.

INVESTMENT REPORT-WALL CAPITAL GROUP: Dave Wall had previously emailed all meeting participants the quarterly investment report. Mr. Wall reviewed the investment report with the Board members. Mr. Wall explained that the equity account is at about 70% of the portfolio. Attorney Clifford confirmed that by fiscal year end April 30, 2021, the equity account should be at 65% to be compliant with state law. Mr. Wall will begin the process of rebalancing by incorporating bonds. There has been a twelve-month return of almost 35.5%, and since September of 2019 there has been a 15.25% rate of return. The large cap equity portfolio for the quarter was up about 5%, a 58% return for the last twelve months and a 22.5% rate of return since August 31, 2019. The small cap portfolio is up 18.14%. Mr. Wall suggested using REITs to come into compliance with the Board’s investment policy and asset allocation, and he would recommend the Vanguard REITs fund, which was up about 8% for the quarter.

Mr. Christensen informed Mr. Wall that he will require $80,000 around the date of April 20, 2021, to meet the pension benefit obligations, but will not require any in the months of May or June due to tax receipts that will be coming in from the county.

COMMUNICATIONS AND REPORTS: Attorney Clifford recommended to the Board members that updates on the Illinois Police Officers’ Pension Investment Fund (IPOPIF) would now become a regular agenda item for updates on the consolidation. The Board’s packet contains a link for the Police Consolidated Fund website, which will reflect any activities. It will include the dates of Board meetings which are being conducted electronically so they can be viewed through this link. There is also an email address for questions or comments on the consolidated fund. The new Chief Investment Officer has been named for the Police Consolidated Fund, Ken Custer who previously served as Dallas Police and Fire Pension System’s CIO.

Attorney Clifford also reported that a lawsuit was filed on February 23, 2021, which involves 18 pension funds comprised of both police and fire funds. This litigation alleges that the consolidation of pension funds violates the Pension Protection Clause and will potentially infringe on benefits in the future. There is an anticipated August 2021 date for hearing motions and a decision could be made by the circuit court by the end of summer.

Attorney Clifford advised that the Consolidated Board did entertain proposals from seven investment consultants, which were then pared down to three. The Board has had second interviews with these three investment consultants. Mr. Wall reported that there has not been a decision made at this time, but he believes it was now between two investment consulting firms.

STATEMENTS OF ECONOMIC INTEREST: President Leard questioned whether all members had submitted their Statement of Economic Interest to the county and all confirmed that they have. Mr. Christensen indicated that the county would contact the City of Woodstock if there were any outstanding.

APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS: Mr. Christensen reported that since Steven Gorski passed away on February 5, 2021, his benefits were prorated for that month which equaled $619.93. After conferring with Attorney Clifford, it was determined that Mr. Gorski’s minor child would receive the same pension benefit he had been receiving. With the prorated amount calculated in, the minor child received $2,851.69 for the February payment. For March, April and May she will be entitled to the full amount. On June 19, 2021, the minor child turns eighteen and, therefore, that payment was prorated for a total of $2,198.69. At that point any benefit payments will end.

President Leard wanted to verify that all documents were secured including Mr. Gorski’s death certificate, the minor child’s birth certificate as well as the completed application form that applies to this situation.

Motion by Trustee Fourdyce to terminate Mr. Gorski’s benefits and award the minor child survivor benefits. Seconded by Trustee Knapp. A roll call was taken.

Ayes: Dennis Leard, Terri Abrams, Gordon Knapp and Joshua Fourdyce.

Nays: None.

Abstentions: None.

Absentees: Jeremy Mortimer.

Motion carried.

Mr. Christensen informed the Board members that Officer Sandra Valle will be retiring on October 15, 2021. Officer Valle would like to purchase time back from when she was suspended, which amounts to 279 hours. The calculation of what she will owe the Pension Fund for her employee contributions for this time period plus interest is $3,034.40. This amount will be deducted from her final paycheck and submitted back into the Pension Fund.

Motion by Trustee Abrams to accept the Application for Creditable Service Purchase by Officer Sandra Valle and the calculations by Mr. Christensen. Seconded by Trustee Knapp. A roll call was taken.

Ayes: Dennis Leard, Terri Abrams, Gordon Knapp and Joshua Fourdyce.

Nays: None.

Abstentions: None.

Absentees: Jeremy Mortimer.

Motion carried.

NEW BUSINESS:

STATUS OF TRUSTEE REAPPOINTMENT: Trustee Knapp informed the Board members that he had received a letter indicating that his reappointment would be proposed at the March City Council meeting. Mr. Christensen will find out the status of Trustee Knapp’s appointment and report back to Trustee Knapp.

ATTORNEY’S REPORT: Attorney Clifford reviewed her firm’s Pension Insights for the second quarter 2021 that was sent out prior to the meeting regarding keeping track of the closed-session minutes. In addition, the open-session recordings that are now required for each remote meeting will be eligible for destruction after eighteen months. Therefore, the six-month review of the closed session minutes will also include a review and destruction of the open-session recordings. Attorney Clifford has included some examples of how the inventories should be kept.

The second handout that was sent by Attorney Clifford is a checklist of when things need to be filed with the Department of Insurance as well as things that should be done every quarter. This will help build agendas and stay on track with all State requirements.

Some funding concerns are covered in the IAFPD Fire Call magazine article including the fact that the Consolidation Funds are set to take over the actuarial responsibility as of the end of the transition period, which was defined by statute as July 1, 2022. Mr. Christensen indicated that from the City of Woodstock’s standpoint its goal is to continue funding at 100% using entry age normal cost.

TRUSTEE TRAINING UPDATES: Attorney Clifford advised that when the Consolidation Law reset the trustee training to a sixteen-hour and eight-hour requirement, the first round of this runs January 1 to December 31 but there is a six-month grace period. Thereafter, when members are reappointed or re-elected to the Board, it will run with that term, which is typically a May cycle.

ADJOURNMENT: Motion to adjourn the meeting at 7:06 p.m. by Trustee Abrams. Seconded by Trustee Knapp. A roll call was taken.

Ayes: Dennis Leard, Terri Abrams, Gordon Knapp and Joshua Fourdyce.

Nays: None.

Abstentions: None.

Absentees: Jeremy Mortimer.

Motion carried.

https://www.woodstockil.gov/sites/default/files/fileattachments/police_pension_board/meeting/43231/f_-_police_pension_meeting_4-13-21_-_part_1_of_1_-_minutes.doc.pdf