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In This Issue:

1 - COVID-19 Continues

3 - Challenging Times Ahead

3 - IFSI Update

4 - IAFC Calls on Congress

5 - ICHIEFS Scholarships

5 - Verizon Smoke & Mirrors

5 - “Silent” Alarm System

6 - Illinois F. D. / Population COVID-19 Data

7 - National EMS Call Responses

9 - Not Eligible for extra COVID leave

9 - Clause Protects from Changes

10 - Clause Held Unconstitutional

10 - IL Supreme Courts Rules EMS Liable

11 - IPFA Begins On-Line Training Programs

12 - U S House Passes Bill

12 - Lost Wealth Today vs. Great Recession

13 - Confessions & Lessons of a Workaholic

14 - NCPERS Response to Pension Problems

15 - Kentucky Supreme Court Axes Case

15 - A Progressive State Income Tax

17 - A Finance Lesson from this Crisis

18 - Illinois Fire Marshal Awards Grants

19 - Executive Director Runs for IFPIF Board

20 - IL Firefighters’ Investment Fund Update

21 - Coffee Mugs Honor Heroes

21 - States Pull Back Contributions

22- Police Officers Investment Fund Update

23 - Member Updates

2020-21 DATES TO REMEMBER

Wednesday Aug. 19 Black Board Meeting Wednesday Oct. 21 Black IPFA Annual Meeting Friday Nov. 6 Red IPFA 2020 Fall Pension Seminar Wednesday Feb. 17 Gold Board Meeting Friday May 7 Black IPFA 2021 Spring Pension Seminar Tuesday May 11 Red Firefighter Medal of Honor Ceremony Saturday Aug. 14 Black IPFA Day at the Illinois State Fair Wednesday Aug. 18 Red Board Meeting Wednesday Oct. 20 Red IPFA Annual Meeting

2020—Volume 3

COVID - 19 Continues

The general population continues to call for help. Emergency medical

services continue to respond.

Since the article in Volume 2, fire service organizations in the State

continue to provide information and model policies to those who provide

medical care to citizens and visitors throughout the State.

As part of that process, the Illinois Fire Service Institute and the Office

of the State Fire Marshal provided a program where IPFA and 9 other Illi-

nois fire service groups explained how their organizations have modified

their procedures to provide information and services to their membership.

IPFA was one of the ten organizations to speak during the event. To

those of you who were able to monitor the presentation, thank you.

For IPFA, it meant a cancellation of the Spring 2020 Pension Seminar.

It also meant researching and obtaining software to provide on-line train-

ing for pension board trustees and other interested parties. This software

was first used to present the mandatory 4 hour training program for Pen-

sion Board Trustees.

Other organizations have also made changes to the way the operate.

It seems the new normal is not normal. On-line meetings, social distanc-

ing, temperature checks, masks, on-line learning are also part of the new

normal.

The graphs on page 6 show the data received daily from fire depart-

ments throughout the state. Sent directly to the Fire Marshal, Matt Perez

has compiled and distributed the data. Every day, even while on vacation,

he compiles and distributes the numbers. Here is how he ended a recent

July e-mail sending out a daily report:

“The rise in the number of quarantined firefighters in the last week is

similar to what it was in March when this all began. Please stress the im-

portance of the continued use of PPE, good hygiene and following protocols

and guidelines at work, at home and while traveling…we cannot afford to

drop our guard! “

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Challenging Times Ahead for

Local Governments

Editorial Board, The News Gazette

June 10 - Amid the COVID-19 pandemic and its affect

on the economy, city governments have to be flexible in

their planning and spending.

In normal times, this is the period when city councils

actively review and approve budget plans for their city

governments for the coming year. But these times are not

normal, with events almost daily laying waste to carefully-

considered spending plans.

In Champaign-Urbana, for example, the COVID-19 cri-

sis has forced city officials to reduce their tax-revenue esti-

mates for the current year and the fiscal year that begins

July 1. Champaign officials now anticipate a $5.3 million

reduction in revenue in the current year and $7.9 million

next year. Urbana’s projected loss for next year is 10 per-

cent less than the current year (about $5.26 million). And

that is based on some kind of economic normalcy. But if

the University of Illinois is suddenly forced to shut down in

-person instruction and thousands of students quickly

evacuate the community, those projections will worsen.

Likewise, in the aftermath of the murder of George

Floyd and concerns about police mistreatment of blacks,

there are calls to change how local police departments

operate. These changes can’t occur overnight, but if in-

deed there are revisions in policing policies and increased

spending on social services, that could require more

spending by city governments.

For now, city officials in Urbana and Champaign are

dealing with the revenue shortfalls by deferring pay raises,

implementing hiring freezes, delaying the purchase of new

vehicles for at least a year and reducing capital improve-

ments spending. They’re also making use of budget re-

serves built up in better times.

But city officials have warned council members that

they’re going to have to revisit revenue and spending

numbers during the year and be prepared to make deeper

cuts, possibly in areas involving direct services to resi-

dents.

This will be a difficult year (at least) for local govern-

ments, and maybe for citizens, too.

Forewarned is forearmed.

COVID-19 Update from IFSI

Royal P. Mortenson, Director

7-July. I want to give all of you an update on where we

are with regard to delivering on our mission in the COVID-

19 impacted world.

As I indicated in my last message dated 4-May, we

spent May and June putting into place several actions that

would allow IFSI to fulfill our essential mission while re-

maining consistent with all COVID-19 UIUC, CDC, and IDPH

protocols.

Our goal was to be ready to deliver training and educa-

tion as soon as departments were ready to receive it. As

such, we;

Continued a full and comprehensive delivery schedule

of “Facebook Forums” and Virtual Cornerstone Pro-

gram online deliveries.

Developed comprehensive policy and procedures to be

able to operate and keep our students, instructors,

and staff safe. The full document is available on the

IFSI COVID-19 Information Portal: https://

www.fsi.illinois.edu/content/covid19.

Laid out a “crawl, walk, run” plan that would enable us

to incrementally test our mitigation procedures.

Crawl: 18-30 May. Select classes that were stopped

mid-stream by the COVID shutdown allowed to be

completed---Spring Academy, BOF Program, etc.

Walk: 1-30 June. Selected classes allowed to be deliv-

ered at specific locations statewide.

Run: 1 July and beyond. Gradual resumption of normal

delivery schedule statewide.

Stock-piled COVID mitigation supplies to support train-

ing---PPE, cleaning supplies, etc.

Developed headquarters staff protection and manning

plans that would support each phase of the “crawl,

walk, run” plan.

Our plan has worked. We learned and adjusted in the

crawl and walk phases and we are now “running”.

With fully compliant, common sense COVID mitigation

procedures in place with all programs, IFSI is now ready to

deliver training and education state-wide.

Moving forward we must be ready to adjust if the situ-

ation changes. We must be flexible in our delivery ap-

proaches to ensure we can support the needs of Illinois

first responders and their departments. Every department

is different and each of them will have different local re-

strictions. Now more than ever, one size delivery does not

fit all. We must build our skill and ability to accomplish our

mission in the COVID impacted environment during July

and August. The late summer and fall of 2020 brings a busy

(Continued on page 4)

On September 22, 2009 Michael Jordan was inducted into

the Hall of Fame. He ended his induction speech with these

words:

"One day you might look up and see me playing the game

at 50. Don't laugh. Never say never, because limits, like fears,

are often just an illusion."

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The Size Up is a publication of:

Illinois Professional Firefighters Association

188 West Industrial Drive, Suite 134 Elmhurst, IL 60126-1608

v 630.833.2405 f 630.833.2412

www.ipfaonline.org

ipfa@aol.com

President: C. John McCauley Vice-President: Mario Tricoci Board Secretary: Bob Zamor

Treasurer: Greg Knoll Sgt.-at-Arms: Terry Cox

Executive Director: Greg Knoll

Staff Secretary: Carol Budz

The Size-Up is published four times per year in the interest of the mem-bership of Illinois Professional Fire-

fighters Association (IPFA).

The content of the articles published in the Size-Up reflects the opinions of the author or contributor. It does not necessarily represent the opinion of IPFA, the Board of Directors, staff or

members.

These articles are provided with the understanding that IPFA is not

providing any specific legal or profes-sional service or advice.

The products and services advertised

in the Size-Up are not to be con-strued as an endorsement by IPFA, its officers, directors, staff or members.

Postage is paid at Elmhurst, IL.

Postmaster: Send address changes to:

Illinois Professional Firefighters Association

188 West Industrial Drive, Suite 134 Elmhurst, IL 60126-1608

and heavy schedule---BOF Blended: August-October, Fire College/IFA Weekend:

October, Fall Academy, and a full schedule of Firefighting, SOTP, and Leadership

Development and Command Programs deliveries.

Thank you all for your dedication, support, and hard work in ensuring IFSI

continued to support the fire service in Illinois and nationally.

COVID-19 Update from IFSI

(Continued from page 3)

IAFC President Calls on Congress to Support Fire & EMS Departments During COVID-19 Pandemic

On June 12 Chief Gary Ludwig, IAFC Presi-dent and Chairman of the Board, asked Congress to support local fire and EMS departments as he testi-fied before the U.S. House of Representatives' Com-mittee on Science, Space, and Technology.

During his testimony, Chief Ludwig highlighted the importance of local fire and EMS departments to helping victims of COVID-19.

"Regardless of whether they are from career, volunteer or combination de-partments, fire and EMS personnel are providing aid every day to victims of COVID-19. When a person suffering from COVID-19 calls 9-1-1, fire and EMS per-sonnel meet them in their homes, provide aid and transport them to the hospi-tal," said Chief Ludwig.

Chief Ludwig's testimony highlighted the challenges that local fire depart-ments face during the pandemic:

"We are having trouble getting critical masks, gowns, and sanitizing agents. Our firefighters were not originally considered a high priority for PPE or for testing, which led to quarantining firefighters while they awaited results. We also are concerned that we will again run into obstacles to inoculating our staff when vaccines are developed."

Chief Ludwig called for Congress to be the "heroes in Washington D.C. to help us fight this unseen enemy" by: Providing direct assistance to fire and EMS agencies through FEMA's Assis-

tance to Firefighters Grant (AFG) and Staffing for Adequate Fire and Emer-gency Response (SAFER) programs and the HHS's Supporting and Improving Rural EMS Needs (SIREN) grant program.

Making fire and EMS departments top priorities for the distribution of COVID-19 supplies, testing, and vaccines.

Notifying fire and EMS departments of drug shortages. Supporting tax incentives for local volunteer fire and EMS personnel. Repealing the auction of the public safety spectrum in the T-Band (470 MHz

– 512 MHz). Chief Ludwig also thanked Congress and the Trump Administration, especial-

ly the U.S. Fire Administration, for the assistance that already has been provided during the COVID-19 pandemic.

Chief Ludwig's full statement is posted on the IAFC web page.

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I-CHIEFS Scholarships Announced

This summer’s issue of The Gong announced the 2020

scholarship awards. The I-Chiefs Education and Research

Foundation announced a total of 73 scholarships were

awarded; totaling $59,000 in grant value.

A summary of the program is as follows:

140 applications received

73 grants funded

73 grants awarded.

Applications/Awards by type of programs:

17 / 8 Associates Degree

58 / 32 Bachelor’s Degree

28 / 20 Master’s Degree

0 / 0 Doctoral

32 / 13 Fire Programs

5 / 0 Other

Applications / Awards by Department Status

125 / 68 Paid

11 / 8 Combination

4 / 2 Volunteer

Illinois Professional Firefighters Association congratu-

lates all 140 applicants. We are also proud to list the fol-

lowing Association members for being a scholarship recip-

ient:

David Bochenek, River Forest FD

Adam Brand, Bellwood FD

Michael Doocy, Westchester FD

Edward Kofoed, Wilmette FD

Nicholas LeValley, Bellwood FD

Jeremy Lockwood, Mundelein FD

Thomas Mackie, Hoffman Estates FD

Nicholas McDonough, Hinsdale FD

Andrew Zimmer, Hinsdale FD

IPFA is proud to support the Scholarship Program by

donating $1,500 annually to sponsor 3 $1,000 matching

grants named for: Bob “Prange” Angsten, J. Eugene

Baker, and John “Murph” Cadagin.

Those three gentlemen were long term Board Mem-

bers who spend countless hours helping our Association

in many different matters.

User Agreement which says Verizon is not responsible for

anything. Here is a sample from that User Agreement:

“Vendor Content may contain errors, bugs, design

flaws or other problems that may not be corrected by

Verizon in providing Vendor Content; 2.1.2 Verizon may

not have tested Vendor Content (including security infor-

mation) and Customer’s use of any Vendor Content is at

Customer’s sole risk. Vendor Content may result in unex-

pected results, loss of data, project delays or other unpre-

dictable damage or loss to Customer;

“Customer further agrees that VENDOR CONTENT IS

PROVIDED SOLELY BY A VENDOR CONTENT PROVIDER,

AND VERIZON IS NOT A PARTY TO ANY AGREEMENT BE-

TWEEN CUSTOMER AND A VENDOR CONTENT PROVIDER.

2.2 LIMITATION OF LIABILITY. CUSTOMER AGREES THAT

IN NO EVENT WILL VERIZON BE LIABLE FOR ANY LOST

REVENUE, LOST PROFITS, LOST DATA, OR BUSINESS IN-

TERRUPTION AND THE LIKE OR FOR ANY SPECIAL, DIRECT,

INDIRECT, CONSEQUENTIAL, INCIDENTAL, OR PUNITIVE

DAMAGES HOWEVER CAUSED AND REGARDLESS OF THE

THEORY OF LIABILITY ARISING OUT OF THE INSTALLA-

TION, USE OF, OR INABILITY TO USE VENDOR CONTENT

OFFERED THROUGH THE VERIZON PUBLIC SAFETY APPLI-

CATIONS PORTAL.”

So what it says is if you use any apps or the portal and

someone dies, gets hurt or something goes wrong, don’t

blame them. Now in all fairness there are good apps from

excellent companies but as a company that claims to sup-

port public safety this is dangerous. Since there is no cer-

tification as FirstNet does, this store will include apps that

drain your battery, have security holes, bloated code and

may impact valid apps you are using. What is going to

protect the user of this app store from third party devel-

opers adding apps that are built by foreign governments

or drug cartels? This could include anything from apps

that track first responders to apps that spy on other data

on your public safety device. You wouldn’t know because

Verizon doesn’t certify the apps.

More Smoke and Mirrors from Verizon

Richard A. Mirgon, Richard Mirgon Consulting, LLC

An article was recently published about Verizon an-

nouncing their new public safety app store. Public safety

should understand that this app store is marginal and

nothing more than a list and access to a miscellaneous

collection of public safety related applications. This site

is dangerous to public safety and users should read the

“Silent”' Alarm System Cuts Down on First

Responder Stress, Streamlines Info

Ashley Murray, Pittsburgh Post-Gazette

City public safety officials and Mayor Bill Peduto on

Wednesday showed off a new “silent” alarm system that

alerts only the fire and EMS stations that are being dis-

patched to the call, rather than blasting the call on a radio

for every station and first responder on duty to hear.

The $2.8 million, decade-in-the-making alarm system

(Continued on page 7)

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Fire Departments Affected as reported to the OSFM. Illinois Population Positive as reported to IDPH.

Go to https://ipfaonline.org/ to view the data table that is updated daily.

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will cut down first responders’ stress levels and streamline

services, officials said.

“Most of the people in the bureau would tell you

[listening to radio calls] is part of the job, that’s just what

we do, it doesn’t affect me,” said the city’s Bureau of Fire

Lt. Dan Doyle at Firehouse 37 in Manchester. “... Your body

reacts to it, even though you’re not going to be the one

going out on that call, you kind of jump real quick to make

sure you can go about your business. Twenty, thirty, forty

years of that really packs a punch.”

Lt. Doyle spoke about research the bureau conducted

with Dr. Bruce S. Rabin, University of Pittsburgh immunolo-

gist and stress-management expert, and Dr. Rabin’s cham-

pioning of the “silent” alarm system.

The system, installed by Middletown, R.I.-based PUR-

VIS, has been used in other cities, including New York City,

for the past two decades.

Pittsburgh Fire Chief Darryl Jones said the alerts, which

will appear on a 60-inch LED board in each fire and EMS

station, will be “vital” in keeping the bureau’s four-minute

response time.

A different sound and color-coding system will alert

firefighters to different types of calls, whether it be a fire

in a building, a car fire or a gas leak. A hard copy of the call

will also print, including detailed location information.

“We want to be able to keep that timeline in order,

and this system will help us to do that. Not only will it be

more efficient in getting us out of the station ... we’ll get

out of the station with more information,” Chief Jones

said.

Mr. Peduto said that although it “may have taken a

while to get the financing through the years of Act 47,”

using technology to keep the public safe was always a pri-

ority.

“Those types of investments in public safety are abso-

lutely critical, especially when we’re at a time of having

national debates about funding and public safety,” Mr.

Peduto said, referring to activists’ calls to reprioritize pub-

lic safety funding toward community and social services

for communities of color.

“Silent”' Alarm System

(Continued from page 5)

EMS Calls Dropped 26% Nationally

During Pandemic

By Laura French, EMS1.com

BUFFALO, N.Y. — A recent study found that 911 calls

for emergency medical services decreased by more than a

quarter nationally during the COVID-19 pandemic.

A research team led by University of Buffalo (UB) Pro-

fessor E. Brooke Lerner, Ph.D., analyzed data from the Na-

tional Emergency Medical Services Information System

(NEMSIS) and found that EMS activations decreased by

26.1% over a six-week period beginning in early March,

according to a university news release. The team also

found that the proportion of EMS-attended deaths nearly

doubled around the same time period.

University of Buffalo Professor E. Brooke Lerner, Ph.D.,

vice chair for research in the Department of Emergency

Medicine in the Jacobs School of Medicine and Biomedical

Sciences, was the lead researcher on a study that found a

more than 25% decrease in EMS calls nationally during the

COVID-19 pandemic.

University of Buffalo Professor E. Brooke Lerner, Ph.D.,

vice chair for research in the Department of Emergency

Medicine in the Jacobs School of Medicine and Biomedical

Sciences, was the lead researcher on a study that found a

more than 25% decrease in EMS calls nationally during the

COVID-19 pandemic. (Photo/University of Buffalo)

"The public health implications of these findings are

alarming," said Lerner, who is the vice chair for research in

the Department of Emergency Medicine at UB's Jacobs

School of Medicine and Biomedical Sciences, in a state-

ment. "When people are making fewer 911 calls but those

calls are about far more severe emergencies, it means that

people with urgent conditions are likely not getting the

emergency care they need in a timely way. The result is

increased morbidity and mortality resulting from condi-

tions not directly related to exposure to SARS-CoV2."

Lerner noted that the increase in the proportion of

EMS-attended death suggests that people may be waiting

to seek medical care for serious conditions up until the

point where their life is in direct danger, possibly out of

fear of being exposed to COVID-19 at hospitals or because

they don't want to burden healthcare facilities with non-

COVID-19-related issues.

“This may mean that future consideration needs to be

given to how we message the risks associated with seeking

medical care during a pandemic,” said Lerner, according to

the news release. “At the same time that we are stressing

how to stay safe from COVID-19, it may also be necessary (Continued on page 8)

HELP US HELP YOU

If you have updated your e-mail address and are not sure IPFA has the correct one on file, just e-mail ipfa@aol.com with your name and department /firm affili-ation. Ask us to change your membership record.

You get information quicker and help control Associa-tion expenses.

8

to stress how important it is to continue to seek care for

serious conditions unrelated to the novel coronavirus.”

Lerner said the overall decrease in calls is most likely

due to lockdowns and stay-at-home orders creating less

opportunity for people to suffer MVC and recreation-

related injuries. Lerner added that the results raise con-

cerns about the financial viability of EMS under these

types of conditions.

“The financial strain on EMS agencies will have long-

term ramifications for maintaining this important safety

net for our communities, especially those agencies whose

revenue is based solely on patient transports,” she stated.

The study was published in the journal Academic

Emergency Medicine. Co-authors included Craig D. New-

gard, M.D., of Oregon Health and Science University, and

N. Clay Mann, M.D, of the University of Utah School of

Medicine.

The work was supported by the National Highway

Traffic Safety Administration, Office of Emergency Medical

Services and the Health Resources and Services Admin-

istration of the U.S. Department of Health and Human Ser-

vices.

(Continued from page 7) Mundelein Police, Firefighters Not Eligible for

Extra COVID-19 Leave

Russell Lissau, Daily Herald

April 13 - Mundelein's police officers, firefighters and

public works employees won't be eligible for extra paid

time off if infected with the COVID-19 virus despite a re-

cent federal law creating that benefit for American work-

ers.

In a meeting held remotely Monday night, the village

board voted to exempt those workers from the benefits of

the Families First Coronavirus Response Act, which was

signed into law last month.

Many other suburbs have taken the same step.

The federal law applies to employers with fewer than

500 employees. It gives full-time employees up to 80 addi-

tional hours of paid sick leave relating to the coronavirus,

through the end of the year. It also allows for up to 12 ex-

tra weeks of unpaid family leave to care for children under

18, funds 14-day paid leave for workers directly affected

by the pandemic and other provisions.

The legislation allows employers to exempt health care

providers and a variety of emergency personnel, including

police officers, firefighters, jail and prison workers, public

(Continued on page 9)

Just play. Enjoy the game. Have fun.

Michael Jordan

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works employees and members of the military.

"(Federal officials) recognize that local government

can't have all the first responders off work at the same

time," Mundelein Village Administrator John Lobaito said.

In the police department, the exemption will apply

to: Chief Eric Guenther and all sworn officers, regardless

of rank; records clerks; and telecommunicators.

In the fire department, the exemption will apply to

all firefighters, regardless of rank.

In the public works department, the exemption will

apply to: Director Adam Boeche; maintenance workers;

crew leaders; a lab technician; supervisors; and a busi-

ness services manager.

The COVID-19 virus hasn't severely affected Munde-

lein's municipal operations, Lobaito said. Mayor Steve

Lentz contracted the virus but recovered.

"Fingers crossed for the next couple of weeks when

we are supposed to hit our peak," Lobaito said.

Officials in Vernon Hills, Elgin, Rolling Meadows,

Rosemont, St. Charles and Hoffman Estates are among

those who also have exempted public safety or public

works employees from some or all of the law's provisions.

Schaumburg officials are expected to go even further

when they meet Tuesday. They've proposed exempting

all village employees from the law and instead will con-

sider a temporary village sick leave policy for the staff.

Schaumburg's leaders view all municipal employees

as "essential service providers," spokeswoman Allison

Albrecht said.

(Continued from page 8) advantage of the amendment’s benefits and purchased ten (10) years of service credit.

In 2011, the Chicago Tribune published an article nam-ing Piccioli and criticizing the amendment that allowed him to become a member of the TRS eligible for a teacher’s pension. In response, the legislature enacted a law in 2012 which repealed the 2007 amendment, forced a refund of Piccioli’s contributions and eliminated his service credit.

Piccioli sought injunctive relief in circuit court arguing the repeal of the 2007 amendment violated the pension protection clause. The circuit court entered summary judg-ment for the defendant. Piccioli appealed directly to the Supreme Court.

At the Supreme Court, the Defendant argued the 2007 amendment was special legislation expressly prohibited by the State Constitution. The Constitution’s special legisla-tion clause prevents the legislature from making classifica-tions that arbitrarily discriminate in favor of a select group. To determine whether a law constitutes special legislation, courts apply a two-part test. First, courts must decide whether the statutory classification discriminates in favor of a select group and against a similarly situated group. Next, if the classification does discriminate, courts must decide whether the classification is arbitrary. To determine whether a classification is arbitrary, courts apply the ra-tionale basis test. Under the rational basis test, courts hy-pothesize reasons for the legislation, even if the reasoning advanced was not contemplated by the legislature.

Here, the Court analyzed whether the statutory classi-fication discriminated for or against a select group and found the amendment discriminated in favor of employees who began working for the statewide teacher’s union prior to the amendment. Next, the Court weighed whether the classification was arbitrary. The Defendant argued the cut-off date was arbitrary, thus rendering the amendment un-constitutional. The Court held the inclusion of a cutoff date in a statute that confers government benefits reliant on public funding is rational as state and local governments operate with limited resources and budgets and as such, limiting benefits to a finite number of participants is both reasonable and necessary (i.e. Tier 1 v Tier 2). Further, the Court found there is no constitutional requirement a gov-ernment program must continue in perpetuity. As such, the Court found a rational basis for the amendment and determined it was not special legislation.

Next, the Defendant argued numerous union employ-ees were unaware of the amendment. The Court held ig-norance of the law had no bearing on whether it was spe-cial legislation and the fact other union employees did not opt in does not render the statutory benefit special legisla-tion. Further, the Court found the amendment applied generally to all eligible employees and not a specific indi-vidual.

(Continued on page 10)

Pension Protection Clause Protects

Beneficiary from Later Code Changes

Brian LaBardi, IPFA Board Counsel

Piccioli v. Board of Trustees of Teachers’ Retirement Sys-

tem, 2019 IL 122905 (2019)

In Piccioli, the Illinois Supreme Court reviewed the

constitutionality of a 2007 statutory amendment that

permitted teacher union employees, who became certi-

fied teachers prior to the enactment of the statute, to

establish credible service in the Teachers Retirement

System (“TRS”) by applying in writing to the TRS within 6

months of the effective date and paying into the system

both the employee and employer contributions plus

interest for prior union service.

Piccioli, a union lobbyist who obtained a substitute teaching certificate in 2007 and worked one day as a substitute teacher prior to the statute’s enactment, took

10

Finding the 2007 amendment was not special legisla-tion, the Court held the amendment conferred a pension benefit protected by the Pension Protection Clause. By following the amendment’s provisions, Piccioli estab-lished an enforceable contractual relationship. While nothing prevented the legislature from eliminating this benefit for future employees, there was no justification for reducing or eliminating the pension benefits Piccioli was awarded by the 2007 amendment.

The takeaway: Once a person commences to work and becomes a member of a public retirement system, any subsequent changes to Pension Code that would di-minish the benefits conferred by membership in the re-tirement system cannot be applied to that person. Hence, once Tier 1, always Tier 1.

Pension Protection Clause

(Continued from page 9)

to address the constitutional argument. In 2019, board members again made this argument at Administrative Re-view, and the circuit court issued a judgment in favor of the board members holding Public Act 99-900 unconstitu-tional, directing IMRF to reinstate the board members with “full rights, membership, and participation.”

IMRF appealed directly to the Illinois Supreme Court according to Rule 302 (a), and the sole issue before the Court was whether §7-137.2(a) of the Pension Code vio-lates the pension protection clause. The Court cited the well-developed case law regarding the pension protection clause holding, “the original requirements for the [board member’s] IMRF participation cannot be changed unilater-ally by the legislature.” The Court emphasized the “newly created requirement in the Pension Code [§7-137.2(a)] did not exist when [the board members] began their employ-ment and participation in IMRF. Thus, it cannot be consti-tutionally applied to [these board members].”

Since a public employee’s membership in a pension system is an enforceable contractual relationship, the Court protected continued IMRF participation from unilat-eral legislative diminishment or impairment when the board members became IMRF participants and accrued the service credits. Ultimately, the Illinois Supreme Court affirmed the circuit court’s judgment and found §7-137.2 of the Pension Code invalid under the pension protection clause.

2016 Legislation Conflicting with the Pension Protection Clause Held Unconstitutional

Brian LaBardi, IPFA Board Counsel

2020 IL 125330

In Williamson County Board of Commissioners v. Board of Trustees of the IMRF, the Illinois Supreme Court held amendments in 2016 to the Illinois Pension Code (section 40 ILCS 5/7-137.2(a)), unconstitutional under the Illinois Constitution’s pension protection clause article XIII, section 5, of the Illinois Constitution (Ill. Const. 1970, art. XIII, § 5).

The Pension Code initially allowed elected county board members to take part in the Illinois Municipal Re-tirement Fund (IMRF) if the participant occupied a position requiring 1000 hours of service annually, and the public employee filed an election to participate. The 1968 admin-istrative rule necessitated the governing body of a partici-pating employer to adopt a resolution certifying the posi-tion of elected governing body members required the hourly standard. Williamson County and the board mem-bers complied with the 1968 rule. The board members satisfied the original requirements for IMRF participation, electing to participate in 2004, 2008, and 2012.

In 2016, Public Act 99-900, amended parts of the Pen-sion Code (40 ILCS 5/7-137.2(a)), requiring, for the first time, all county boards certify within 90 days of each gen-eral election their board members had to work sufficient hours to meet the hourly standard for participation and that members who take part in IMRF submit monthly time-sheets. IMRF issued “Special Memorandum #334” to the authorized agent in every county, explaining the change: “If the County Board fails to adopt the required IMRF par-

IL. Supreme Court Rules EMS can be Liable for Crash Enroute to Non-emergency Pickup Laura French, EMS 1

SPRINGFIELD, Ill. — Illinois' highest court has ruled that

ambulance services in the state can be held civilly liable for

incidents that occur en route to a nonemergency transport

pickup.

The state's Supreme Court upheld an appellate court's

ruling that the Emergency Medical Services Systems Act,

which provides immunity from lawsuits to EMS agencies

providing "emergency or nonemergency medical services,"

does not cover scenarios where a provider is on their way

to pick up a nonemergency patient.

The Illinois Supreme Court ruled that ambulance ser-

vices can be held liable for a crash that occurs en route to

a nonemergency pickup.

The appellate court had ruled that the drive to pick up (Continued on page 11)

Photo: Illinois Supreme Court

11

a nonemergency patient was not classified as a

"nonemergency service" under the Emergency Medical

Services Systems Act, according to the Supreme Court's

decision filed Thursday. The higher court agreed with this

ruling, stating that the Act defines nonemergency medical

services as care rendered to the patient "during transpor-

tation of such patient to health care facilities."

The case stems from a 2016 crash in Chicago in which

the plaintiff, Roberto Hernandez, was injured when an am-

bulance owned by private ambulance company Lifeline

Ambulance collided with his vehicle. EMT Joshua M. Nicho-

las was driving the ambulance after being dispatched to

pick up a patient and transport them to a dialysis center.

Hernandez sued Nicholas and Lifeline Ambulance, claiming

Nicholas was negligent and had run a red light, causing the

collision.

The Supreme Court's ruling allows Hernandez to pro-

ceed with the lawsuit. Editor’s Note: The link to the Court’s ruling:

https://courts.illinois.gov/Opinions/SupremeCourt/2020/124610.pdf

(Continued from page 10)

IPFA Begins On-Line

Training Programs

IPFA Staff

Earlier this year, the IPFA Board

approved the purchase and imple-

mentation of on-line training soft-

ware.

The first program offered is the 4 hour mandatory train-

ing program required of all downstate police and fire pen-

sion board trustees. Originally scheduled for April 1 at

Moraine Valley Community College, the program was post-

poned multiple times due to COVID-19 restrictions.

The program format was changed to an on-line format

and offered the morning of Thursday, July 2. Despite inter-

net gremlins, some beyond IPFA’s control, the program

was recorded and is now available on-line.

The first hour contains a welcoming statement by IPFA’s

Board President, John McCauley. Presentations by IPFA’s

Legislative Representative, Mark Mifflin. He covers the

history of how Senate Bill 1300 was enacted. Kevin Fry

from the Public Pension Division spoke on changes at the

Division and changes made as part of the Bill. The first

hour of the program also contains a presentation by

Mayor Steve Cherico from Naperville, who is a one of the

Board Members of the Fire Investment Fund.

A panel of presenters then reviewed the Senate Bill as it

applies to the formation of the two investment funds. The

structure of both Boards, election of board members dur-

ing 2020 that represent active participants, retired/

disabled/survivors (in one instance) was covered. Changes

to Tier II benefits, revised training requirements for newly

elected and current board trustees were covered.

The course then described the progress made by both

the police and fire investments funds through the month

of June.

The program ended with a question and answer session

concerning items of concern raised by seminar attendees.

The advantage of on-line training is that the student can

register once, log into their individual, password protected

training account and take this and future training pro-

grams at their pace.

No fees are required to set up an account. Fees are paid

for programs when you enroll for a class.

To those of you who use IPFA for your Trustee training

needs, thank you.

Take the time to set up your individual account by going

to: https://ipfaonline.org/dashboard/

12

U.S. House Passes Bill to Ensure Benefits for First Responders

Sabrina Eaton, cleveland.com

WASHINGTON, D.C. – On July 20 The U.S. House of Representatives adopted legislation sponsored by Bain-bridge Township GOP Rep. Dave Joyce to ensure that families of first responders who die from or are disabled by the coronavirus get Public Safety Officers Bene-fit program payments for firefighters, police officers and emergency medical technicians who are killed or disa-bled in the line of duty.

The bill, cosponsored by Rocky River GOP Rep. An-thony Gonzalez and Warrensville Heights Democratic Rep. Marcia Fudge, passed on a noncontroversial voice vote. It passed the U.S. Senate on May 14, so it will be-come law after President Donald Trump signs it. Their “Safeguarding America’s First Responders Act” creates a presumption that if a first responder is diagnosed with the coronavirus within 45 days of their last day on the job, the Department of Justice will treat it as a line of duty incident and provide the payments.

“This pandemic has underscored the fact that our first responders and public safety officers are our first line of defense in our communities when disaster strikes,” said a statement from Joyce. “Each and every day these brave men and women continue to serve and protect our communities despite the threat that COVID-19 poses.”

U.S. Sen. Chuck Grassley, an Iowa Republican who introduced the measure (Senate 3607) in the U.S. Sen-ate, said the law was needed to keep the survivors of

first responders who die from COVID-19 from having to prove their loved one contracted it on the job.

“First responders always answer the calls to action, selflessly placing others before themselves,” Grass-ley said in a Senate floor speech. “In recognition of the many sacrifices they make, Congress established the Public Safety Officers Benefit program in 1976. This pro-gram provides first responders with a one-time pay-ment if they die or are totally disabled on duty.

“Let me be clear, nothing can ever put back togeth-er a family who has lost a loved one, but the PSOB pro-gram provides some economic relief to grieving families and peace of mind to the first responders themselves in knowing that their families won’t be left destitute if tragedy were to befall them ... The last thing a grieving family needs to be worried about after the loss of a loved one is whether or not they’ll be able to success-fully prove that their loved one contracted COVID on duty.”

Lost Wealth Today vs. the Great Recession

Squared Away Blog

For older workers starting to think about retiring, the economic maelstrom the coronavirus set in motion is a reminder of that sinking feeling they experienced just over a decade ago.

In 2008, the stock market plunged nearly 40 percent, accelerating the steep decline that was underway in U.S. house prices. The unfolding 2020 recession is playing out differently. But both downturns have one thing in com-mon: Social Security as a stabilizing influence on older workers’ retirement finances.

A 2011 study of the change in baby boomers’ finances

during the Great Recession found that total wealth dipped by 2.8 percent, on average, between 2006 and 2010 for households between ages 51 and 56.

The 2.8 percent decline in wealth at the time was a significant setback for baby boomers. In more normal times, earlier generations had increased their wealth by 3 percent to 8 percent at comparable ages.

Nevertheless, things could have been so much worse for baby boomers were it not for the substantial wealth they had built up over several decades in their fu-ture Social Security benefits – an amount that is unaffected by the collapse of finan-cial and housing markets. The average val-ue of these future Social Security benefits

(Continued on page 13)

13

was 30 percent of boomers’ wealth. Wealth in the study also included home equity and

retirement plan accounts.

This time around, it’s too early to determine the sever-ity of the downturn’s effects on older workers. Unlike the previous recession, though, this one has had little impact on house prices so far, and the stock market, after sinking in March, has regained about half of its losses thanks to aggressive action by the Federal Reserve.

The major worry is unemployment. The jobless rate approached 15 percent in March – well above the 2009 peak of 10 percent – and economists expect it to keep ris-ing.

But, in any recession, Social Security is a stabilizing force. Today, it represents a large share of older workers’ wealth just as it did a decade ago. And lower- and middle-income workers’ benefits are a much larger share of wealth, because they are far less likely to have substantial assets in 401(k)s.

Social Security’s progressive benefit formula also helps them more in retirement by replacing a higher percentage of their current earnings, though the redistribution among individuals is larger than it is for households.

Social Security, the researchers concluded, “played a major role in cushioning the effects of the recession.”

What was true then is still true today. Editor’s Note: To read this study, authored by Alan Gust-

man, Thomas Steinmeier, and Nahid Tabatabai, see “How Did the Recession of 2007-2009 Affect the Wealth and Retirement of the near Retirement Age Population?”

(Continued from page 12)

I can accept failure, everyone fails at something.

But I can’t accept not trying.

Michael Jordan

Confessions & Lessons of a First Responder Workaholic

Jay Fitch, FireRescue 1

Finding balance between work and home has always been a challenge for me.

The seeds of this socially sanctioned addiction were

sown back in high school when I jumped up from the din-

ner table to answer a call as a volunteer firefighter.

As my career developed, “off-duty” interruptions be-

came the norm. As an EMS chief, when the pager went off

during church, I quietly slipped out the back door. I once

even took a date to an MCI while on the way to dinner.

Not a surprise, it was a first and last date.

As a young working father who was also going to grad-

uate school full time, I struggled to spend quality time with

my children and finish my required homework before col-

lapsing into bed each night. Work was totally demanding. I

often felt I wasn’t doing enough and was behind on pro-

jects, despite 12-plus-hour office days. At home, I felt like I

couldn’t be the kind of father or husband I should be. Both

parts of my life were competing against one another, and

neither got my full attention as exhaustion set in.

In my ideal world, I would have productive workdays

and spend the other half of my day with friends and fami-

ly. Unfortunately, I learned there is no perfect work-life

balance but that I could improve my equilibrium over time.

Here are several strategies that work for me:

1. FINDING THE RIGHT SITUATION - Finding a position I

was passionate about was the first step. If you find your

job is draining you, and you find it difficult to do the things

you love outside of work, your balance is off. And, if you

are working or living in a toxic environment, working for or

are in a relationship with a toxic person, or you truly don't

love the job or person you’re with, it is time to find a new

job or relationship.

2. PRIORITIZING HEALTH - Stress-eating at the station

or office and the lack of regular exercise impacted my

physical condition and emotional well-being. I’ve always

been a bit overweight, and it’s been easy to blame that on

my public safety career. Prioritizing your health doesn't

have to consist of radical or extreme activities. It can be as

simple as daily “me time” and accomplishing some low-

impact exercise. Just taking a brief walk at lunch or each

evening before supper can be a good starting strategy. My

learning is that making healthy choices is a commitment

that requires attention in each stage of life.

3. USING TECHNOLOGY WISELY - I’m never far from my

cell phone, but I’ve learned I don’t have answer every text

(Continued on page 14)

14

or email instantly. When a family member answers a long

text or takes a call during meals, it’s a clear indication that

things are out of balance. The nature of our work requires

an occasional emergency call during meals, but as a gen-

eral rule, I’ll glance at a text or email and use a one button

response indicting that I’m unavailable but will respond as

soon as possible if it is an emergency or the next business

day if it’s not.

4. CREATING MEMORABLE MOMENTS - I learned it

wasn’t always the quantity of the time spent but the quali-

ty of that time that really mattered. Despite a busy sched-

ule when the children were young, going camping multiple

times each year was a great way to unplug from work, give

them special attention, and for me to relax. Twenty-five

years later, we still laugh about being invaded by ants and

other camping misadventures. Spending at least one

weekend away each year alone with each member of the

family was also a strategy that helped me cope and con-

nect. OK, spending more than one weekend away with

your spouse/significant other is a better plan. The point is

that when you are creating memories you are also finding

balance.

5. TAKING DELIBERATE ACTION - If you do not firmly

plan for personal time, you will never have time to do oth-

er things outside of work. No matter how hectic your

schedule might be, you ultimately have control of your

time and life. When planning time with your loved ones,

create a calendar for romantic and family dates. It may

seem weird to plan one-on-one time with someone you

live with, but it will ensure that you spend quality time

with them without work-life conflict. Just because work

keeps you busy doesn't mean you should neglect personal

relationships.

Confessions & Lessons

(Continued from page 13)

NCPERS Response to "COVID-19 Will Turn the

State Pension Problem into a Fiscal Crisis"

States have fiscal problems in good times and bad, so

to heap these problems on the doorstep of public pensions

is unwise and unfair. As a former executive director of Na-

tional Governors Association, Professor Scheppach surely

knows that allocating and implementing adequate and eq-

uitable funding for public education, health care, infra-

structure—or for any public service for that matter—is one

of the most vexing issues any state faces. Spending deci-

sions are often highly politicized; scapegoats are sought

when the numbers don't add up to the liking of politicians

who want to fund their pet projects.

Pensions, by their very nature, are a long-term propo-

sition for state and local governments. The model is that

salary contributions are collected from employees over

decades, with governments chipping in their share and

professional advisers investing the proceeds to achieve

desired results. Pension funding thrives on such steadi-

ness, so when state and local government renege on their

funding commitments, shortfalls can develop. The answer

isn't to get rid of pensions; the answer is for state and local

governments to honor their commitments on a steady ba-

sis instead of behaving like deadbeat dads.

Pensions of public employees have a fairly small claim

on state and local economic resources. According to an

analysis of U.S. Census Bureau data by the National Associ-

ation of State Retirement Administrators, contributions

made by state and local governments to pension trust

funds account for 4.7 percent of direct general spending.

And Professor Scheppach's warnings ignore the fact

that when pension funds flow into communities, they have

(Continued on page 15)

FIND A LIFESTYLE THAT WORKS

FOR YOU - Remember, work-life bal-

ance means different things to differ-

ent people because, after all, we all

have different life commitments.

What’s important is to decide on a life-

style that allows you to feel productive

and passionate about your career,

health and relationships. ABOUT THE AUTHOR - Jay Fitch, PhD, is

a founding partner at EMS/public safety

consulting firm Fitch & Associates. He

served as a volunteer firefighter in Fairfax

County, Virginia, before becoming one of

the early medics trained in the United

States.

15

a positive effect and act as an economic stabilizer during

bad economic times, like the times we are currently in. Our

analysis shows that public pensions are net revenue posi-

tive for state and local governments. Without the impact

of public pensions, taxpayers would have to pay more to

receive the same level of services.

Recent studies by researchers from Federal Reserve

Board of Governors, Bank of England, and Brookings Insti-

tution show that from a fiscal perspective, public pensions

are stable and can be sustained over the long haul with

few if any modifications. As long as pension liabilities are

not rising faster than GDP, they are stable and sustainable.

Our own analysis shows that in the U.S. as a whole, pen-

sion liabilities have been rising at less than the rate of GDP

growth.

The real problem, which Professor Scheppach side-

steps, is the mismatch between the state and local reve-

nue structures and economic growth. That's what needs to

be fixed. Public pensions have been around for decades

and have navigated economic ups and downs by adjusting

their portfolios and managing risk.

Respectfully,

Hank Kim,

Executive Director and Counsel,

National Conference on Public Employee Retirement

Systems

(Continued from page 14) have the necessary standing to bring this case against the

defendants because they weren't personally injured by the

alleged actions.

The Supreme Court's decision noted that the plaintiffs

have a defined-benefit pension plan through KRS, under

which they're entitled to fixed payments regardless of the

pension system's financial fluctuations or stability.

Some public employees in Kentucky have defined-

contribution plans, rather than defined-benefit plans,

which is a different situation because retirees' benefits in

that kind of scenario typically are affected by a pension

system's financial circumstances.

"Ultimately, this Court recognizes that Plaintiffs allege

significant misconduct, but, as a matter of law, these eight

Plaintiffs, as beneficiaries of a defined-benefit plan who

have received all of their vested benefits so far and are

legally entitled to receive their benefits for the rest of their

lives, do not have a concrete stake in this case," the court

ruling said.

Kentucky Supreme Court Axes Case Over

Pension System's Hedge Fund Investments

Morgan Watkins, Louisville Courier Journal

The Kentucky Supreme Court decided a lawsuit should

be dismissed that accused several hedge fund firms, as

well as former officials for the state's public pension sys-

tem, of breaching their fiduciary duty by arranging super-

risky investments.

Eight people with Kentucky Retirement Systems pen-

sion plans filed the lawsuit in December 2017 against an

array of defendants and levied claims of a "civil conspira-

cy" involving over $1 billion in problematic investments

that were made in prior years.

The plaintiffs alleged the defendants knew KRS "faced

an appreciable risk of running out of plan assets but con-

cealed the true state of affairs" and made risky investment

decisions that led to losses of over $100 million by 2018

and contributed to the system's multibillion-dollar

shortfall, according to court documents.

However, in an opinion that was released this week,

the state Supreme Court determined the plaintiffs did not

A Progressive State Income Tax Will Open the

Door to Taxing Retirement Income

Ben Szalinski & Adam Schuster, Illinois Policy

Illinois state Treasurer Michael Frerichs confirmed

what many believe would be a new possibility in Illinois if

voters pass the progressive income tax amendment: taxing

retirees.

“One thing a progressive tax would do is make clear

you can have graduated rates when you are taxing retire-

ment income,” he said while speaking at an event hosted

by the Des Plaines Chamber of Commerce. “And, I think

that’s something that’s worth discussion.”

According to the Daily Herald, Frerichs said he knows

people who receive annual pensions over $100,000 but

pay no state income taxes. He said under the flat tax there

is no way to differentiate between retirees who take home

hundreds of thousands from those who get little.

Illinois voters on Nov. 3 will decide whether to remove

the Illinois Constitution’s flat tax protections and give state

lawmakers greater power to set tax rates.

The constitution’s drafters in 1970 included a flat tax

guarantee in order to ease voters’ fears that the state’s

first income tax – which went into effect in 1969 – could

be raised easily in Springfield. Flat taxes treat everyone the

same and make it harder for lawmakers to raise rates on

everyone because voters can hold them responsible. A

graduated tax allows politicians to decide who should be

taxed how much and allows them to gradually increase

(Continued on page 17)

16

This is the cover page for the 12 page brochure about the 96th Annual Fire College. For full information and registration:

https://www.fsi.illinois.edu/

17

Former Democratic gubernatorial candidate and for-

mer state Sen. Daniel Biss also agreed with Frerichs’ posi-

tion that a progressive tax is needed in order for Illinois to

tax retirement income.

While government leaders argue for more taxation,

Illinoisans want to move in the opposite direction. A 2019

poll by the Paul Simon Public Policy Institute found 73%

are against taxing retirement incomes, while just 23% be-

lieve it is a good idea. Illinois is one of three states that

does not tax retirement income.

With no retirement tax, Illinois can more easily retain

retired workers without losing them to more tax-friendly

states. Since 2013, Illinoisans over age 65 have been the

least likely to move out.

Illinois' tax exemption for retirement helps retain

state's older residents. Connecticut’s progressive income

tax hits single filers on $50,000 and joint filers on $60,000

of retirement income. As a result, Connecticut loses retired

residents at a faster rate than Illinois.

If the Land of Lincoln changes tax structures and im-

poses a progressive income tax that taxes retired workers

on their income, these trends can easily change. More Illi-

noisans over 65 will pack and move to states with better

climates and lower tax rates.

taxes on smaller segments of the population, eventually

hitting the middle class where most taxable income re-

sides.

That is what happened in Connecticut, the only state

in the past 30 years to impose a progressive tax. Middle

class taxes rose 13%, property taxes spiked 35%, poverty

increased by 50%, more than 360,000 jobs were lost and

the state economy took a $10 billion hit. All that, and the

state still failed to balance its budget.

Gov. J.B. Pritzker has billed a progressive income tax as

a way to increase taxes on the rich without also increasing

taxes on the poor and middle class. But for a low-income

resident making $12,400 a year, the tax would save them

$6 while they are still taxed $1,800 a year.

The bigger problem is the tax’s impact on small busi-

nesses, which are just starting the economic recovery from

Pritzker’s COVID-19 lockdown orders. A progressive tax

would mean up to a 47% tax increase on over 100,000

small businesses, the state’s most prolific jobs creators.

Taxing retirement is not a new idea in Illinois. Former

Chicago Mayor Rahm Emanuel proposed taxing retirees

with incomes over $100,000 last year, while the Civic Com-

mittee of the Commercial Club of Chicago proposed taxing

retirement income over $15,000 per year.

The Chicago Sun-Times editorial board even tied the

two together, writing “Pritzker’s progressive income tax

plan can set the stage for far greater tax fairness. Next,

that tax should be expanded to include the highest retire-

ment incomes.”

A Progressive State Income Tax

(Continued from page 15)

A Finance Lesson from this Crisis

David Walker, The Hill, Op-Ed

The coronavirus is a public health crisis that we need

to continue to take seriously. While we still have a long

way to go before we prevail over this pandemic, it is fitting

to review some lessons that we can learn based on recent

events. The coronavirus reaffirms the fact

that the world has now become much more

interconnected. As a result, addressing a

range of medical, financial, security, migra-

tion, environmental, and other issues will re-

quire increased coordination, cooperation,

and execution across both international and

domestic boundaries in the future.

Believe it or not, the United States was

rated number one in the world in prepared-

ness for a pandemic. Yet demand for ventila-

tors and protective equipment illustrates the

lack of adequate national planning. The fed-

eral government shockingly still does not

have a comprehensive strategy that is risk

based, future focused, and resource con-

strained. The absence of such national plan-

ning results in crisis management approaches

(Continued on page 18)

18

being employed “all too frequently” by our leaders here at

home.

The coronavirus highlights a need to examine our cur-

rent stockpiles and “just in time” inventory practices. The

federal government and American companies need to re-

consider how dependent we are on China and other coun-

tries for critical items. There are clear economic and na-

tional security reasons to increase production capabilities

and sourcing strategies in the United States rather than

keep relying on foreign sources.

The party line vote that defeated the first stimulus bill

demonstrates how partisan Congress has become. This

shameful action proves that George Washington was right

when he claimed the duty of loyalty to faction might one

day override the duty of loyalty to country. When the final

bill passed by a unanimous margin, the price tag had dou-

bled to more than $2 trillion and items unrelated to the

response were added. That is how Washington has been

operating in recent years. Spend more dollars, cater to

special interests, and pass on the financial burden to our

children and to future generations. This is irresponsible,

unethical, and immoral.

The unprecedented economic responses to the coro-

navirus clearly show the unsustainability of our fiscal and

monetary policy over the years. The Federal Reserve has

now employed extraordinary measures far beyond its nor-

mal toolbox. With regard to fiscal policy, the federal gov-

ernment was projected to have a $1 trillion deficit in fiscal

2020 before the stimulus bill passed, and it is likely to be

more than triple that amount.

The debt to gross domestic product ratio has risen sig-

nificantly, will likely grow at least 15 points this year alone,

and is projected to continue rising dramatically thereafter.

Will Congress and the president work together to make

the difficult but necessary tax and spending choices to re-

store fiscal sanity and responsibility after this crisis? The

goal for our leaders should be to ensure that the debt does

not exceed a reasonable and sustainable level that pro-

vides flexibility to deal with future crises. The expected and

projected debt levels of the country do not meet that test.

The United States is a great nation that will prevail

over this public health challenge. In the final analysis after

we defeat the coronavirus, economic growth, personal

liberty, and a normal way of life will be restored. We will

also be in a far better position to address future public

health challenges. These things can be counted on. We will

hopefully learn important lessons from this experience and

take steps to better plan for the future in a broad range of

A Finance Lesson from this Crisis

(Continued from page 17)

areas, become less reliant on foreign sources, and im-

prove both our international and domestic coordination

and cooperation.

Our leaders need to improve national planning, make

our republic more representative, and restore fiscal sus-

tainability in ways that will discharge our stewardship

responsibility and create a better future for all Ameri-

cans. While the coronavirus needs our immediate atten-

tion, our growing fiscal imbalance and increasing debt are

much greater threats to our collective future than any

disease. It is time to take this matter seriously.

Illinois State Fire Marshal Awards $3.5

Million in Grants to Illinois First Responders

Illinois e-News Release

Springfield, Ill- The Office of the Illinois State Fire Mar-

shal and Governor JB Pritzker have announced the recipi-

ents of the Small Equipment Grant Program. A total of $3.5

million was awarded to 154 fire departments/districts and

EMS providers. The OSFM received 540 applications, re-

questing around $12 million in funding during this grant

period.

“First responders put their lives on the line every sin-

gle day to do the critical work of protecting Illinois’ com-

munities. I am pleased to award $3.5 million in small

equipment grants to 154 fire departments and EMS pro-

viders throughout the state that will enable the purchase

of new firefighting and ambulance equipment,” said Gov-

ernor JB Pritzker. “I am grateful for the work our first re-

sponders do, and how they work so diligently to maintain

the safety of our families.”

The Small Equipment Grant Program was established

to provide grants of up to $26,000 for the purchase of

small firefighting and ambulance equipment. This program

(Continued on page 19)

19

IPFA Executive Director Runs for IFPIF Board Position

IPFA Staff

Gregory Knoll, the Executive Director of Illinois Professional Firefighters Association, filed as a candidate for the sole Benefi-ciary Trustee position on the Illinois Firefighters Pension Investment Fund Board. This is one of four positions elected by local Article 4 fund par-ticipants. The other three participant positions are elect-ed by active fund participants.

Greg has been an elected trustee of the Homewood

Firefighters Pension Fund since 1976. He served in that

position throughout his fire service career in Homewood.

Greg retired from the Homewood Fire Department in

2003. Since that time, he has continued to be elected as

the retiree representative of the fund. Greg has served as

Fire Pension Board President since 1983.

For almost 6 years Greg served as the Fire Chief in the

Village of Riverdale. He was appointed to serve as a trus-

tee on their fire pension board for almost 6 years. He has

a total of over 50 years’ experience in downstate fire pen-

sion board matters.

Greg also serves as President of the Homewood Po-

lice Pension Board having been appointed to that Fund in

1999.

During his tenure on both pension boards, Greg has

been part of drafting multiple requests for proposals for

investment advisor/fund management, legal services, in-

surance coverages, administrative services, board ac-

counting firms, and actuarial services.

When the major change in investment parameters for

downstate police and fire funds occurred via statutory

amendment in 1988, the Homewood Firefighters’ Pension

Fund conducted open meetings in the firehouse where all

fund participants were able to attend. Every fund partici-

pant was part of the discussions. Investment profession-

als explained the best avenue for investment in light of

the newly available expanded investment authority. The

Fund focused on balancing risk while maximizing the

Fund’s rate of return.

Greg also has extensive experience working with the

Illinois Department of Insurance, Public Pension Division,

to obtain opinions on matters related to pension fund

governance. He has testified before the Illinois House

Committee on Personnel & Pensions concerning the taxa-

(Continued on page 20)

is an innovative approach to a problem that has long

caused difficulties for the fire departments and not-for

profit ambulance services in Illinois, particularly those that

have hardships in generating the necessary revenue for

small equipment. The purpose is to allow eligible appli-

cants the opportunity to purchase small equipment that

they may otherwise not be able to purchase.

“Ensuring that first responders have the equipment

they need to operate effectively and safely is a top priority

of the OSFM. Most smaller departments and districts

struggle financially to replace or upgrade aging equipment.

The impending fiscal impacts resulting from the COVID19

crisis make the OSFM’s Small Equipment Grant Program

even more critical to help ease that burden,” says Illinois

State Fire Marshal Matt Perez.

“This is an awesome program and benefits my depart-

ment in many ways. With everything going on in the world

today, my department and many other departments have

had to cancel fundraisers which provides funding to pur-

chase equipment. We currently are using air-packs that

are 20 years old, the bottles still pass all testing, but we are

in much need of an upgrade. My firefighters, I believe, feel

safer knowing we are providing them with state-of-the-art

equipment when they put their life on the line as volun-

teers,” says Ava Volunteer Fire Department Chief Rodney

Anderson.

“The Mokena Fire Protection District (MFPD) recently

received grant funding through the OSFM Small Equip-

ment Grant Program to purchase three 800 Mhz portable

radios allowing enhanced emergency communications and

response while creating a safer situation during emergen-

cies. As resources have diminished for all taxing bodies, it

has become increasingly important to seek alternative

sources of funding. Without the support of the Illinois

Office of the State Fire Marshal, the Mokena Fire Protec-

tion District would not be able to acquire much needed

equipment such as these portable radios used to protect

the stakeholders of the MFPD,” says Mokena Fire Protect

District Fire Chief Howard Stephens.

Most Illinois fire departments, fire protections dis-

tricts, township fire departments, and stand-alone, non-

profit ambulance service providers were eligible to apply.

All fire departments, fire protections districts and town-

ship fire department applicants were required to have par-

ticipated in the National Fire Incident Reporting System

(NFIRS) for a minimum of two years prior to applying. For the list of departments and grant amounts: https://

www2.illinois.gov/IISNews/21757-Illi-nois_State_Fire_Marshal_Awards_$3.5_million_in_grants_to_Illinois_First_Responders.pdf

(Continued from page 18)

20

bility of benefits for widows of line-of-duty disabled fire-

fighters and those firefighters who die in the line of duty.

All candidates need to be nominated by fund partici-

pants in their respective position. Nominations can only

be filed electronically, with each candidate having a sepa-

rate e-mail address. If you are retired, disabled, or a de-

ferred pensioner, click on the following link and complete

a nomination form to support Greg’s candidacy: https://

ifpif.directnominations.net:/Petitions/Sign/35c739b3-1ebf

-4ae5-b213-b25231b9e407

To those of you who have already filed nominating

petitions, thank you. If you have not done so already, we

ask that you make time to support Greg’s candidacy for

the trustee position by going to the above web site.

If you have any questions or need further infor-

mation, please contact the IPFA office.

Executive Director Runs for IFPIF Board

(Continued from page 19)

The February 28 meeting also included a closed ses-

sion to discuss appointment and compensation for the

positions mentioned above. After the closed session, the

IFPIF Board appointed following three firms:

Mayer Brown, LLP

Reinhart, Boerner, Van Dueren, S.C.

Jacobs, Burns, Orlove & Hernandez LLP.

as outside legal counsel.

When COVID-19 issues created a “new normal” way of

conducting meetings, future dates began being conducted

via teleconference to comply with state guidelines.

The March 30 meeting passed resolutions concerning

the Executive Director employment agreement, By-Laws

of the Board, and the establishment of three committees:

Ad Hoc, Auditing, and Elections. The 2020 Board budget,

the Loan Agreement with the Illinois Finance Authority,

and establishment of a bank account were also resolved.

April 20 was the next meeting of the Board. That

meeting included electing a Board Secretary, Ethics and

FOIA Officer, and Board Treasurer. The audit committee

reported on an Agency Directives Manual, and a modifica-

tion to the 2020 budget. The Election Committee report-

ed on the progress concerning elections for permanent

board representatives required to be elected during calen-

dar 2020.

On May 15 the sole agenda item was an Ethics discus-

sion by Mayer Brown LLP.

The June 1 meeting included a motion ratifying actions

taken by voice votes in prior meetings. Additional motions

approved the 2021 budget, including staff count, adopted

a Hiring Policy, and a Procurement Policy. This meeting

also approved an Election Policy and approved contracts

hiring two contractors; one to build a voter file and the

other to administer electronic election nominations. Also

approved was the lease for office space in Lombard, IL and

approve a web site design firm. Further motions approved

job descriptions. Hiring decisions were made concerning

the Chief Operating Officer and Chief Financial Officer.

Further discussions covered the Ethics Policy. The Execu-

tive Director provided a financial update.

The June 22 meeting agenda contained resolutions

approving the purchase of various insurance policies con-

cerning property and liability coverages. Also approved

were polices for employee benefits.

The July 27 meeting reported on the selection of a

401K provider for the IFPIF staff. The Audit Committee

reported on a final revision of the 2020 budget, the Ethics

Policy, Benefits Policy, Retirement Policy, and the selec-

tion of an External Audit Firm. The Election Committee

reported on the selection of an elections vendor and revi-

(Continued on page 21)

Illinois

Firefighters

Pension

Investment

Fund Update

IPFA Staff

The 2020 Volume 2 of the Size-Up ran an article con-

cerning the formation of the Illinois Firefighters Pension

Investment Fund (IFPIF). Enabled by Senate Bill 1300,

this consolidated Investment Fund was created to man-

age the investment assets of all downstate Article 4 pen-

sion funds. This nine person board, with seven repre-

sentatives temporarily appointed, has conducted numer-

ous board and committee meetings. The IFPIF Board

operates on a June end-of-fiscal year budget cycle.

The board first met on January 31. That meeting

elected a Chairman (Chuck Sullivan, AFFI President) and

Vice-Chairman (Brad Cole, Executive Director, IML) of

the Board. Also included in that meeting was soliciting

nominations / applications for the Executive Director

and outside legal counsel positions for the fund. The

closing date for both submissions was set as Monday,

February 10. The Board also discussed various insurance

coverages for the Board.

The February 12 meeting of the IFPIF went into

closed session to discuss the sole application received

for Executive Director and the five applications received

for outside counsel.

21

sions to the elections rules.

Besides the 8 board meetings described above, the

Audit Committee met 7 times, the Ad Hoc Committee

met 5 times, and the Elections Committee met 9 times

since the end of January.

The IFPIF is now located at 1919 South Highland Ave-

nue, Building A, Suite 237, Lombard, IL 60148-6153.

For more information about the fund:

https://ifpif.org/

(Continued from page 20) (we) helped during my career.

"Knowing how much joy this gives me each day, I told

Joni this would be a great tribute for all our N.R. employ-

ees working during the COVID-19 to have their own per-

sonal coffee cup."

CUSTOM COFFEE

MUGS HONOR

HEROES

Community Editor,

Landmark Papers

North Riverside resident Tony Novak and the rest of

the families who live in the 2400 block of 7th Avenue said

"thanks" to the village's firefighters, paramedics, police

officers, emergency dispatchers, public works employees,

village hall staff, recreation department staff and elected

officials last week, delivering 89 specially designed coffee

cups to them in appreciation for keeping the village work-

ing during the COVID-19 crisis.

On June 17, Novak displayed all 89 coffee mugs on the

front lawn of his home before delivering them to the vil-

lage the next day. Each mug has a photo representing a

village department, with the employee's name and title on

the other side.

Novak and his wife, Joni, have lived on 7th Avenue for

40 years but have lived in North Riverside even longer. No-

vak served as a member of the North Riverside Fire De-

partment for 28 years, retiring in 1997 at the rank of lieu-

tenant.

The inspiration for the coffee mugs was a mug Novak

made for himself upon his retirement from the fire depart-

ment. It has served as a memento of that important time

of his life, and the 89 new mugs will be a memento of this

time in the current employees' lives.

The printing on the mugs was done by T-Shirts and

Trophies in Brookfield.

"After I retired from the fire department, I ordered a

coffee cup with North Riverside Fire on one side and my

name on the other, Lieutenant Tony Novak. This is my fa-

vorite coffee cup I use each day," Novak wrote in a letter

to neighbors explaining his initiative and asking for their

financial support to make it happen. "Each day I hold that

coffee cup brings back great memories of all the people I

States Pull Back on Pension Payments

as Virus Ravages Revenue

Martin Braun, Bloomberg News

Colorado and South Carolina have pulled back from

making additional payments to their underfunded pen-

sions, moves that may play out in other states that are

struggling to balance budgets as the coronavirus ravages

tax revenue.

Colorado eliminated a $225 million supplemental pay-

ment to the state’s Public Employees’ Retirement System,

backing away from a 2018 plan to bolster the pension,

which is about 60% funded after suffering from years of

inadequate government contributions. South Carolina sus-

pended a statutorily scheduled 1% employer contribution

increase for the fiscal year beginning July 1.

And New Jersey, which has one of the nation’s worst-

funded pensions, has deferred a $950 million pension pay-

ment until September and Governor Phil Murphy’s plan to

increase contributions 13% to $4.6 billion is in question.

“There’s definitely going to be pressure in some places

to not pay annual required contributions because of reve-

nue shortfalls,” said Gene Kalwarski, the chief executive

officer of Cheiron, an actuarial consulting firm. “States are

going to have to make up the shortfall somehow, some

way.”

States are projected to face budget shortfalls of about

$555 billion through 2022, according to the Center on

Budget and Policy Priorities, and without more aid from

Washington they will have to cut spending or raise taxes.

Postponing pension payments may ease budget pain in

the short-run, but it will defer the costs to later years and

allow unfunded liabilities, estimated at as much as $5 tril-

lion by the Federal Reserve, to grow.

Unfunded obligations have kept rising despite steady

investment gains

The pension contribution cuts are setbacks for states

that enacted reforms in the aftermath of the Great Reces-

sion. Editor’s Note: This article edited for space. The complete article is available at: https://www.advisorperspectives.com/articles/2020/08/03/states-pull-back-on-pension-payments-as-virus-ravages-revenue

22

Board returned to open

session, IPOPIF announced

that the Administrative Ser-

vices Contract was awarded

to Foster & Foster.

The IPOPIF Board also announced the following firms

being appointed as Board Counsel:

Reimer & Dobrovolny—General Counsel

Puchalski, Goodloe, Marzullo—Conflict Counsel

The May 8 teleconference meeting discussed a num-

ber of items: selection of the Interim Director, Com-

mittee appointments, and the loan agreement. Contracts

were discussed for the following: Interim Director, Board

Counsel, Conflict Counsel, and Administrative Services.

The May 22 teleconference included further discus-

sion of the Interim Director agreement and approval of

the contracts for both Board Counsel firms. A internal

bank account was established. Further discussion con-

cerning the loan agreement, annual budget, and internal

accounting services occurred.

June 5 was the next teleconference. A press release

for the new Interim Director was shown. The Director’s

contract was also approved. The election committee pro-

vided an update. A discussion of the fund’s By-Laws also

occurred.

The June 19 meeting covered policies and procedures

for both the Board of Trustees and Executive Director.

Budgets for the 2020 and 2020-2021 fiscal years were

approved. An update was provided concerning internal

banking services. Further discussions concerning the

Loan Agreement with the Illinois Finance Authority also

occurred.

A number of Resolutions were on this agenda. Five of

them memorialized actions taken concerning employ-

ment agreements, loan agreements, By-Laws, and budg-

ets.

The IPOPIF can be contacted at:

Illinois Police Officers’ Pension Investment Fund

184 Schuman Boulevard, Suite 305

Naperville, IL 60563

630-620-0200

IPOPIF@gmail.com

Illinois Police Officers’ Pension Investment

Fund Update

IPFA Staff

The Illinois Police Officers’ Pension Invest Fund

(IPOPIF) consolidated investment fund was enabled by

Senate Bill 1300. Also a nine person board, eight repre-

sentatives were temporarily appointed to serve in the

2020 calendar year. This board also operate on a July -

June fiscal year.

The first meeting of the IPOPIF was conducted on Feb-

ruary 24 in Peoria. At this meeting, Board Officers were

elected, action on the Ethics Officer was deferred until

board legal representation was determined.

The second meeting was March 4 in Aurora. Com-

mittees were formed to write job descriptions for Execu-

tive Director and Board Legal Counsel. A RFP for board

administrative services was also being finalized. Posting

dates and response due dates were established for the

three descriptions being finalized. The board also dis-

cussed the loan agree language with the Illinois Finance

Authority. An e-mail address, ipopif@gmail.com, was es-

tablished for interested individuals or parties to contact

the Board. A LinkedIn account was set up and a Facebook

page established.

The next meeting of the Board was March 13 in Rock

Island. The three job descriptions or proposal discussed at

the March 4 meeting were approved. Also approved were

the due dates for submissions.

Due to increasing COVID-19 concerns, a location for

the next scheduled meeting could not be finalized.

On April 13 the Board held its’ first teleconference

meeting. It was announced that 17 applications for Execu-

tive Director were received, 10 applications for Legal Coun-

sel were received, and 3 applications for Administrative

Services were received. The IPOPIF Board went into closed

session to discuss those submissions. The returned to

open session and announced Zoom interviews on April 23

and stated the announcement of the Administrative Ser-

vice contract would be made on May 1.

The April 23 teleconference meeting entered into

closed session to interview legal counsel candidates.

When the Board returned to open session, they an-

nounced that their were 4 finalists for Executive Director.

The May 1 meeting went into executive session to in-

terview the finalists for Executive Director. When the

The OSFM, IFCA, AFFI, IFA, MABAS and IFSI came

together to produce a video encouraging the continued

use of PPE, good hygiene and following protocols and

guidelines at work, at home and while traveling:

https://www.youtube.com/watch?v=W6LW_x3Jbl0

23

NEW MEMBERS

Associate Member Mrs. Suzi L. Boess

Lemont F.P.D. FF/PMD Michael Hanlon

Libertyville FF/PMD Cory Conner

Oak Brook FF/PMD Seth Bowlan FF/PMD Eric Focht

Winfield F.P.D. FF/PMD Michael Beckley

PROMOTIONS

Homewood Lieut. to Captain Thomas Gaskin

Long Grove F.P.D. FF/PMD to LT/PMD Shaun Unell

Northlake Deputy Chief to Chief Paul Feldman

RETIREMENTS

Elmhurst Lieut. Jeffrey M. Hayes

Mount Prospect Lieut. David L. Miller

South Holland LT/PMD Ronald T. Kalkowski

Wheeling Chief Keith S. MacIssac

DEATHS

Des Plaines Engr. Donald Trost

Kankakee FF Phillip P. Hodak

Mount Prospect B/C Lonnie H. Jackson

Naperville A/C Donald Faulhaber

Wauconda D/C Ed Dagdick

24

PRSRT STD

US POSTAGE

PAID

PERMIT NO. 366

ELMHURST, IL

Illinois Professional

Firefighters Association

188 Industrial Drive, Suite 134

Elmhurst, IL 60126-1608

ADDRESS SERVICE REQUESTED