The Arlington Heights Police Pension Board met July 28 to approve the 2017 budget.
Here are the meeting's minutes, as provided by the board:
MINUTES OF THE REGULAR MEETING OF THE
ARLINGTON HEIGHTS POLICE PENSION FUND BOARD OF TRUSTEES
POLICE DEPARTMENT ADMINISTRATION CONFERENCE ROOM
200 EAST SIGWALT STREET, ARLINGTON HEIGHTS, ILLINOIS
THURSDAY, JULY 28, 2016
President Andrew Whowell called the meeting to order at 5:35 PM. Roll call was taken with:
Board Members Present: Andrew Whowell, President
Tom Henderson, Vice President
Harry Malone, Trustee
Gary McClung, Trustee
Also Present: Tom Kuehne, Treasurer
David Wall, Wall & Associates
Rick Reimer, Pension Board Attorney
APPROVAL OF MINUTES
MR. HENDERSON MOVED, SECONDED BY MR. MCCLUNG TO APPROVE THE MINUTES
OF THE REGULAR MEETING HELD ON APRIL 28, 2016. The motion passed unanimously
MR. MCCLUNG MOVED, SECONDED BY MR. MALONETO APPROVE THE MINUTES OF
THE SPECIAL MEETING HELD ON JUNE 17, 2016. The motion passed unanimoulsy
TREASURER’S REPORT
A. Report from the Village Treasurer
Mr. Kuehne passed out and gave a brief overview of the Police Pension Fund Financial Report for period
ending June 2016, saying that things are within budget for the year.
B. Approval of Check Register
MR. HENDERSON MOVED, SECONDED BY MR. WHOWELL TO APPROVE THE
PAYMENT OF CHECKS #492- #498. Roll call was taken. The motion passed unanimoulsy.
C. Proposed 2017 Police Pension Fund Budget
Mr. Kuehne also passed out the proposed Police Pension Fund budget for 2017. He gave a brief overview
of projected revenues and expenditures, and said that he budget provides for three retirees in 2017.
MR.WHOWELL MOVED, SECONDED BY MR. MCCLUNG TO ADOPT THE PROPOSED
2017 POLICE PENSION FUND BUDGET AS PRESENTED BY MR. KUEHNE. The motion
passed unanimously.
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D. Police Pension Fund Actuary Results as of December 31, 2015.
Mr. Kuehne reminded the Board of the retirement of Sander Goldstein. He provided the Board the
actuarial valuation done by MWM Consulting, saying that they were recommended and was also the low
bidder. Mr. Kuehne stated what the statutory minimum contribution and the GASB rules contribution
were and recommended to the Board to follow the GASB rules for funding which would be $3.839
million.
MR. HENDERSON MOVED SECONDED BY MR. WHOWELL TO ADOPT THE
RECOMMENDED 2016 TAX LEVY AMOUNT OF $3.839,961 PAYABLE IN 2017 BASED UPON
THE MWM CONSULTING ACTUARIAL VALUATION AS OF JANUARY 1, 2016. Roll call was
taken. The motion passed unanimously.
Mr. Reimer stated that he will write a letter with the actuarial valuation to the Village advising them of the
amount that the Board is recommending, and will also file it with the Department of Insurance.
PAYMENT OF BILLS
RDK Law Firm, $745.56
Pamela Wilkiel, Recording Secretary, $300.00
MR. WHOWELL MOVED, SECONDED BY MR. MALONE TO APPROVE THE PAYMENT OF
BILLS. Roll call was taken. The motion passed unanimoulsy.
REPORTS
Quarterly Investment Report – Wall and Associates
Mr. Wall presented the second quarter investment report saying that the portfolio has about 5% in cash,
58% in equities, and 37% in investment grade corporate bonds. Mr. Wall stated that the second quarter the
plan is up about $1.6 million finishing with about $111 million, with a rate of return of 1.5%. He said that
on a year-to-date basis the rate of return is 2.7% net of all fees. Mr. Wall continued by giving an overview
of the rest of investment portfolio.
Mr. Wall stated that the National Investment Services (NIS) agreement has been signed and said that that
JP Morgan will be asked to deliver the assets to the successor custodian. Paperwork has been signed and
will be submitted to JP Morgan. Mr. Wall will also send a copy of the signed contract with NIS to the
DOI.
Mr. Wall was asked to invite Great Lakes Advisors to the Board’s October meeting to discuss their
investment.
Mr. Reimer gave the Board a legal update saying that when the legislature met in Springfield to try to
solve the budget problem, that there is talk that after the November election in January that there will be
full court press for consolidation of Article 3 and 4 funds for investment purposes only. He went on to say
that he does not know what the bill will be and said that his firm will be brainstorming on how to legally
challenge it.
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OLD BUSINESS
A. Review and/or modification to the Boards Administrative Rules and Regulations
Mr. Whowell presented the Administrative Rules and Regulations of the Pension Board for signatures
after some modifications were made by Mr. Reimer’s office.
MR. WHOWELL MOVED SECONDED BY MR, MCCLUNG TO ADOPT THE
ARLINGTON HEIGHTS POLICE PENSION BOARD’S ADMINISTRATIVE RULES AND
REGULATIONS. The motion passed unanimously.
B. Portability Request – Officer Christopher Tatman, Barrington P.D.
MR, WHOWELL MOVED, SECONDED BY MR. HENDERSON TO ACKNOWLEDGE THE
COMPLETTION OF THE CREDIBLE SERVICE TRANSFER REQUEST OF OFFICER
CHRISTOPHER TATMAN FROM THE BARRINGTON POLICE DEPARTMENT IN THE
AMOUNT OF $69,399.88, AND THAT HE PURCHASED 3 YEARS, 11 MONTHS AND 16 DAYS
TO THE ARLINGTON HEIGHTS POLICE PENSION FUND. The motion passed unanimously.
Mr. Reimer stated that he will send the DOI the final transfer report.
C. Portability Request – Officer Michael Migliorsi, Sterling P.D.
MR, WHOWELL MOVED, SECONDED BY MR. HENDERSON TO ACKNOWLEDGE THE
COMPLETTION OF THE CREDIBLE SERVICE TRANSFER REQUEST OF OFFICER
MICHAEL MIGLIORSI FROM THE STERLING POLICE DEPARTMENT IN THE AMOUNT
OF $26,911.12 AND THAT HE PURCHASED 2 YEARS, 2 MONTHS AND 19 DAYS TO THE
ARLINGTON HEIGHTS POLICE PENSION FUND. The motion passed unanimously.
Mr. Reimer stated that he will send the DOI the final transfer report.
D. Portability Request – Officer Jacob Howard, Sauk Village P.D.
Mr. Whowell stated that there have been problems with Sauk Village saying that calculation were made in
May and that funds have not yet been received from them. He said that Officer Jacob Howard’s credible
service is 2 years, 6 months, and 26 days, and that Sauk Village was to forward funds in the amount of
$29,828.00. Mr. Reimer stated that he will send a letter to Sauk Village requesting funds to be forwarded.
NEW BUSINESS
A. Retirement – Approval Final Decision & Order, Officer Robert Kostka, 05/20/16
Mr. Whowell stated that Officer Kostka retired on May 20, 2016 after 30 years of service and is eligible
for retirement benefits of 75% of his annual salary including longevity of $73,339.50.
MR. WHOWELL MOVED, SECONDED BY MR. HENDERSON TO APPROVE THE $6,111.63
MONTHLY PENSION AND ADOPT AND PUBLISH THE DECISION AND ORDER FOR
OFFICER ROBERT KOSTKA. Roll call was taken. The motion passed unanimoulsy
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B. New Hire – Officer Anfiny Eshoo, 05.24/16, Tier II Participant
MR. WHOWELL MOVED, SECONDED BY HENDERSON TO APPROVE OFFICER ANFINY
ESHOO’S ENROLLMENT INTO THE ARLINGTON HEIGHTS POLICE PENSION FUND AS
A TIER II PARTICIPANT EFFECTIVE MAY 24, 2016. The motion carried unanimously.
C. New Hire – Officer Justin Fryksdale, 05/31/16, Tier I Participant
MR. WHOWELL MOVED, SECONDED BY MCCLUNG TO APPROVE OFFICER JUSTIN
FRYKSDALE’S ENROLLMENT INTO THE ARLINGTON HEIGHTS POLICE PENSION
FUND AS A TIER I PARTICIPANT EFFECTIVE MAY 31, 2016. The motion passed unanimously
D. New Hire – Officer Oleh Yusypyuk, 07/05/16, Tier II Participant
MR. WHOWELL MOVED, SECONDED BY MALONE TO APPROVE OFFICER OLEH
YUSYPYUK’S ENROLLMENT INTO THE ARLINGTON HEIGHTS POLICE PENSION FUND
AS A TIER II PARTICIPANT EFFECTIVE JULY 5, 2016. The motion passed unanimoulsy
E. Portability Request – Officer Anfiny Eshoo, Maywood P.D.
Mr. Whowell stated that Officer Eshoo tendered a letter requesting his portability from the Maywood
Police Department and that it is in process.
F. Portability Request – Officer Justin Fryksdale, Maywood P.D.
Mr. Whowell stated that Officer Fryksdale had 8 years, 9 months, and 28 days of service with Winnetka,
saying that the true cost calculations for him were $195,947 which was Winnetka has forwarded to the
Arlington Heights Police Pension Fund.
MR. WHOWELL MOVED SECONDED BY MR, HENDERSON TO ACCEPT THE OFFICER
FRKSDALE’S PORTABILITY OF $195,947 FROM WINNETKA INTO THE ARLINGTON
HEIGHTS POLICE PENSION FUND. Roll call was taken. The motion passed unanimoulsy
G. Military Time Buy Back – Officer Gerald Capriotti
Mr. Whowell stated that he has had numerous requests from Officer Capriotti to buy back some of his
military time with the Illinois National Guard, saying that he has forwarded totals of points earned. Mr.
Reimer stated that points are for military purposes only and not used for anything else. He said that
Officer Capriotti will have to provide the order(s) that show every day that was served.
H. Final Approval – Administrative Rules & Regulations
Approved under Old Business
I. Semi-Annual Review of Closed Session Minutes
There were none.
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J. Review Status of Trustee’s Annual Training Requirements
Mr. Whowell stated that all Board members are current with their training requirements. Mr. Reimer
stated that the new year training requirements reset and begin August 13th. Mr. Whowell stated that he
will continue to be the Board’s FOIA officer and file the training requirements with the Attorney
General’s Office.
K. 2016 IPPFA Training Conference, October 4-7, 2016
MR. WHOWELL MOVED SECONDED BY MR. MCCLUNG TO APPROVE THE FUNDS TO
COVER THE COSTS (REGISTRATIOIN FEES, LODGING, AND PER DIEM) OF THE
PENSION BOARD MEMBERS THAT WISH TO ATTEND THE 2016 IPPFA TRAINING
CONFERENCE BEING HELD OCTOBER 4 7, 2016 IN LAKE GENEVA. Roll call was taken.
The motion passed unanimously.
L. 2016 NCPERS Public Safety Pension & Benefits Conference, October 23-26, 2016
The Board agreed that they will not be attending the NCPERS Conference in October.
M. Election of Board Officers (ie; President, Secretary, etc)
Mr. Reimer stated that per Statute, the election of Board Officers must take place in July.
MR. HENDERSON MOVED, SECONDED BY MR. WHOWELL TO MAINTAIN THE
EXISTING SLATE OF OFFICERS FOR THE ARLINGTON HEIGHTS POLICE PENSION
FUND. The motion passed unanimoulsy
N. Potential selection of Independent Enrolled Actuary for Recommended Tax Levy
The Board chose not to select an Independent Enrolled Actuary.
OTHER BUSINESS
ADJOURNMENT
There being no further business to discuss:
MR. WHOWELL MOVED, SECONDED BY MR. MALONE TO ADJOURN THE MEETING AT
6:35 PM.
SUBMITTED BY: _________________________________________
Michael Schenkel, Secretary
APPROVED BY: _________________________________________
Andrew Whowell, President
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