Minutes - 01/19/2010 - Firefighter's Pension Fund Board2.
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MINUTES OF THE JANUARY 19, 2010 MEETING OF THE
BOARD OF TRUSTEES OF THE OAK BROOK FIREFIGHTERS
PENSION FUND APPROVED AS PRESENTED ON APRIL 22, 2010
CALL TO ORDER
The Meeting of the Board of Trustees of the Oak Brook Firefighters Pension Fund was called to order
by President Erickson at 9:04 a.m. in the West Wing Conference Room of the Butler Government
Center, 1200 Oak Brook Road, Oak Brook, Illinois.
ROLL CALL
President Mike Erickson called the roll with the following persons
PRESENT: President Michael Erickson, Secretary John Fagan, Trustees Sharon
Dangles, Mark Fleishman and Timothy Schlindwein.
ABSENT: None.
IN ATTENDANCE: Brian Speers and Jim Brolin of Merrill Lynch, Robert Thompson of
MB Financial and Nathan Gaskill of Lauterbach and Amen
APPROVAL OF MINUTES
a. Approval of Board of Trustees Meeting Minutes of November 19, 2009
The Board requested a corrections on page 2 correct item numbering and correct spelling of Mesirow;
page 3 correct item numbering, Item 7c first sentence, add why — "because the new Clerk is not a
Village employee." and the Roll Call Vote should include Trustee Fleishman's name to the Ayes;
page 4 correct item numbering.
Motion by Trustee Fleishman, second by Trustee Schlindwein, to approve the Board of
Trustees Meeting Minutes of November 19, 2009 as amended. VOICE VOTE: Motion carried.
Board discussion regarding medical reports having been sent to Dr. Moisen for Paul Jacobs; a
scheduled appointment for February only; uncertain about appointments for Watkins and Smyth — Dr.
Wolf is in Florida.
CONSENT AGENDA
All items on the Consent Agenda are considered to be routine in nature and will be enacted in one
motion. There will be no discussion of these items unless a Board member so requests, in which
event, the item will be removed from the Consent Agenda and considered as the first item after
approval of the Consent Agenda.
a. Approval of September 1 -30 2009 Net Payroll Payouts in the total amount of $121,617.57
b. Approval of September 1 -30 2009 Vendor Payouts in the total amount of $30,896.59
c. Approval of October 1 -31, 2009 Net Payroll Payouts in the total amount of $121,617.57
d. Approval of October 1 -31, 2009 Vendor Payouts in the total amount of $24,139.81
e. Approval of November 1 -30, 2009 Net Payroll Payouts in the total amount of $121,617.57
f. Approval of November 1 -30, 2009 Vendor Payouts in the total amount of $24,313.43
g. Approval of Pension Clerk's hours for the months of November through December, 2009 in the total
amount of $1.781.72
h. Anroyal of IPPFA (Illinois Public Pension Fund Association) annual dues in the amount of $750.00
A question was stated regarding difference on medical insurance withholding.
it depends on HMO, PPO, High deductible, Dental, spouse, family, etc.
Board of Trustees of the Oak Brook Firefighters Pension Fund
mutes of January 19, 2010
Dangles remarked that
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The Board determined that there was an overpayment to the Pension Clerk, Linda Gonnella, by
$279.00. The overage will be requested from Gonnella.
Motion by Trustee Dangles, second by Trustee Schlindwein, to approve the Consent Agenda
with the exception of item 4. g.; which shall be removed.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0— None. Motion carried.
5. ITEMS REMOVED FROM THE CONSENT AGENDA — Item 4. g.
Motion by Trustee Schlindwein, second by Trustee Dangles, to remove Agenda Item 4, g.;
Pension Clerk was overpaid by $279.77 (9.5 hours); repayment to be requested from Gonnella.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein,
Nays: 0 — None.
Absent: 0 — None. Motion carried.
6. UNFINISHED BUSINESS
a. Approval of Fire Chief McEllin's Transfer of Credible Military Service
The Board discussed the correspondence presented.
Motion by Secretary Fagan, second by Trustee Schlindwein, to approve McEllin's Transfer of
Creditable Military Service in the amount calculated by Lauterbach and Amen over 22 months
or up to 24 months with confirmation of final dollar amount received from McEOin and proof
of completed transfer.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0 —None. Motion carried.
b. Ratification of Robert Cronholm's Application for Pension Benefits
The Board reviewed and discussed Mr. Cronholm's Application for Retirement Benefits and
associated documents presented.
Motion by Trustee Fleishman, second by Trustee Dangles to ratify Robert R. Cronhohn's
application for Pension Benefits; date of entry: 12/16/1984, date of termination: 5/6/2006, date
of retirement: 10/31/2009, with a monthly benefit of $4,786.36 and a one time retro pay of
$53.34. ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0 —None. Motion carried.
c. Discussion of Request for Proposals (RFP) for Investment Consulting Services
The Board reviewed and discussed previous RFP documents; establishing what the Board wants the
Investment Consultant to do, considering the Police Pension Board input and what firms to consider.
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Minutes of January 19, 1010
PSA, Becky Davis, will provide a template for the Board to review. Trustee Dangles will
aggregate a list of consultants.
The Board briefly discussed Fiduciary Liability Insurance. No proposal from Travelers because the
Fund is only 61 % funded (Travelers requires 75 %). Trustee Dangles will review IRMA. The Board
discussed the differences between Fiduciary Liability Insurance versus Errors and Omission
Insurance. President Erickson will discuss this topic further with Board Attorney Reimer.
TABLED until next meeting.
NEW BUSINESS
a. Treasurer's Report of the Asset Summary of the Fund
Trustee Dangles presented and reviewed the Asset Summary dated 12/31/2009; stating Total Fund
Assets were $20,590,605 with Total Fixed Income at 52.75% and Equity Funds at 47.25%
b. Merrill Lynch Investment Management Presentation
Speers and Brolin presented the Performance Report for year end 12/31/2009; stating the Equity
portfolio was up 29.2% for 2009 and provided analysis on Van Kampen and Eaton Vance Large Cap
Funds.
c. Approval of Investment Transactions
Motion by Trustee Schlindwein, second by Secretary Fagan, to approve investment transactions
as presented.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0 — None. Motion carried.
d. MB Financial Investment Management Presentation
Thompson presented and reviewed the 12/31/09 Performance Report with the Board. Fixed Income
ending market value for 2009 was $10,419,758 which was up .66 %. Thompson also reviewed BA13S
(Build American Bonds) subsidized by U.S. and an analysis of the DeKalb County Bond.
e. Approval of Investment Transactions
Motion by Trustee Fleishman, second by Trustee Schlindwein, to approve the investment
transactions as presented.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0 — None. Motion carried.
f. Approval of Robert Ebsen's Application for Membership to the Oak Brook Firefighters' Pension
Fund
The Board reviewed Mr. Ebsen's application for membership documents, noting an amendment on
the Authorization of Pension Contribution Escrow Withholding page. In reference to contributions,
the form states in the last sentence, "...adopted in the fall of 1999, are 8.455% of salary". The Board
will update the form to state: contributions deposited in the Fund will be "9455% of salary".
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Minutes of January 19, 2010
Motion by Trustee Schlindwein, second by Fleishman, to accept Ebsen's Application for
membership to the Fund, pending correction to the Authorization of Pension Contribution
Escrow Withholding to 9.455 %.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 —None.
Absent: 0 — None. Motion carried.
g. Approval of Lawrence Huffman's Pension Benefit calculation correction in the amount of 16,239.72
The Board reviewed the correspondence from Lauterbach and Amen to Mr. Huffman stating his
benefit had been underpaid in the amount of $16,239.72 and that benefits will be paid with the
January 2010 payment.
Motion by Trustee Dangles, second by Trustee Schlindwein, to approve Huffman's calculation
correction regarding his underpayment; authorizing payment to Huffman in the amount of
$16,239.72
Discussion by the Board regarding an opinion from Board Attorney Reimer.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0 — None. Motion carried.
In. Approval of 2010 Pension Increases
The Board reviewed the authorization letter from Lauterbach and Amen requesting Board signatures
and the Attachment A, stating the pension benefit increases per member.
Motion by Trustee Dangles, second by Trustee Schlindwein, to approve the COLA 2010
increases subject to secondary review of the 3% increases (specifically, Arling and QILDROs).
ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Dangles, and Schlindwein.
Trustee Fleishman abstained.
Nays: 0 — None.
Absent: 0 — None. Motion carried.
i. Approval of the Municipal Com liance Report of the Oak Brook Firefighters' Pension Fund and
Lauterbach & Amen's Service fee for Preparation of Report in the amount of $500.00
The Board reviewed and discussed the Municipal Compliance Report (MCR).
Motion by Trustee Dangles, seconded by Trustee Schlindwein, to approve the MCR and
payment to Lauterbach and Amen in the amount of $500 for preparation of the report.
ROLL CALL VOTE:
Ayes: 5 — President Erickson, Secretary Fagan, Trustees Dangles, Fleishman and Schlindwein.
Nays: 0 — None.
Absent: 0 —None. Motion carried.
8. INFORMATION AND UPDATES
The Board set the next quarterly meeting date for Thursday, April 22, 2010 at 9:00 a.m.
tentatively, in the Upper Level Conference room.
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Minutes of January 19. 2010
Trustee Schlindwein discussed with the Board about the current asset allocation discussion including
Merrill Lynch and upcoming consulting RFP.
9. ADJOURNMENT
Motion by Secretary Fagan, seconded by Trustee Dangles, to adjourn the regular meeting at
12:35 p.m. VOICE VOTE: Motion carried.
ATTEST:
John Faean
Secretary
Becky Davis
Pension Services Admin.
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mutes ofJanuary 19, 2010