2020—volume · 3 hallenging times ahead for local governments editorial oard, the news gazette...
TRANSCRIPT
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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
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)
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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
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, [email protected], 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