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Home My WebLink About01/10/1995 CS minutes MAYOR GI:RAlD l. fARlEY TRUSTEES GEORGE A CLOWES TIMOTHY J CORCORAN RICHARD N HENDRICKS Pi,Ul WM HOHERT MICHAElE W SKOWRON IRVANA K WilKS VILLAGE MANAGER MICHAEL E JANONIS VILLAGE CLERK CAROL A. fiELDS CSMI1I1 ~@I1~@rn @&V~ )~ -1'1-q~ Village of Mount Prospect 100 South Emerson Street Mount Prospect, Illinois 60056 MINUTES CLOSED SESSION JANUARY 10, 1995 Phone: 708 I 392-6000 Fax: 708 I 392-6022 TOO: 708 I 392-6064 The Closed Session was called to order at 9:30 p.m., in the conference room of the Senior Citizens Center, 50 South Emerson Street, for the purpose of discussing Personnel. Present at the Executive Session were: Mayor Gerald Farley; Trustees George Clowes, Timothy Corcoran, Richard Hendricks, Paul Hoefert, Michaele Skowron and Irvana Wilks. Also present were: Village Manager Michael Janonis, Assistant to the Village Manager David Strahl and Finance Director David Jepson. Personnel The Village Board considered slight modifications to the manner in which the Village satisfied certain retirement, life insurance and disability obligations the Village assumed when Chief of Police Ronald Pavlock was hired back in 1981. Due to the fact that Chief Pavlock was not eligible to become a member of the Mount Prospect Police Pension Fund at the time of his initial hiring, the Village agreed to fund his pension, life and disability insurance policies in amounts roughly equal to that provided for members of the Mount Prospect Police Pension Fund. Since Chief Pavlock's hiring, the Village has used its Section 457 Retirement Plan as a vehicle to fund the Village's obligation. Within the last three years, however, IRS rules covering 457 plans have made it impossible to provide full funding in a qualified retirement plan. Finance Director David Jepson proposed the establishment of a 401A retirement plan for Chief Pavlock as a substitute vehicle for funding the Village's pension obligations. The 401A plan has been available through the I RS since January 1, 1994. The Board briefly discussed the history of the Village's obligations to Chief Pavlock. There was a consensus of opinion that the Village was obligated to continue funding under the original terms and conditions of Chief Pavlock's employment agreement. The establishment of the 401A plan was simply a more appropriate vehicle by which that funding could be accomplished. The original terms and conditions of the employment agreement would remain unchanged. The Village Board would consider a Resolution authorizing the Mayor to execute an appropriate plan document to establish the 401A program. The consensus of the Village Board was to have staff proceed with drafting the appropriate Resolution for consideration at an upcoming Board meeting. The Closed Session ended at 9:45 p.m. MEJ/rcc