Minutes - 03/18/2008 - Firefighter's Pension Fund BoardMINUTES OF THE MARCH 18, 2008 MEETING OF
THE BOARD OF TRUSTEES OF THE OAK BROOK
FIREFIGHTERS PENSION FUND APPROVED AS
WRITTEN ON APRIL 21, 2008.
1. CALL TO ORDER
It is noted for the record that the meeting was noticed for a change in location
from the Samuel E. Dean Board Room to the Upper Level Conference Room.
The Meeting of the Board of Trustees of the Oak Brook Firefighters Pension
Fund was called to order by President Erickson at 9:05 a.m. in the Upper Level
Conference Room of the Butler Government Center, 1200 Oak Brook Road,
Oak Brook, Illinois.
2. ROLL CALL
Secretary Fagan called the roll with the following persons
PRESENT: President Michael Erickson, Secretary Fagan, Trustees Scott Harris,
Darrell J. Langlois and Timothy Schlindwein.
ABSENT: None.
IN ATTENDANCE: David Niemeyer, Village Manager and Fire Chief Jim
Bodony.
3. UNFINISHED BUSINESS
a. Discussion of Actuarial Study
Trustee Langlois distributed an updated version of assumptions used by
Timothy Sharpe of the Oak Brook Firefighters Pension Fund. Actuary Sharpe
indicated that the Village portion, without any changes, would increase more
than 10% or approximately $60,000 more in 2008 than in 2007 due to
Firefighter Jacob's disability and due to a shortfall of investment returns. At
the Pension Board's last meeting there was a discussion of the mortality table
used by the Actuary and reduction of the retirement age assumption.
Trustee Langlois indicated Actuary Sharpe provided calculations using the
1990 mortality table which would be a more conservative approach. Most
communities use the 1984 mortality table and he is comfortable continuing with
this table. He explained that it would be very difficult for the Village's portion
to increase more than 10% due to Jacob's disability, the shortfall of investment
returns and include changing to the 1990 mortality table this year.
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Firefighters Pension Fund Minutes
3. a.
Secretary Fagan discussed the two changes in assumptions and recommended
changing the mortality table and delay Trustee Schlindwein's recommendation
of considering a change in the reduction of the retirement age assumption.
Trustee Langlois indicated there are more assumptions that could be reviewed.
Village Manager Niemeyer stated that it would be a challenge by the Village as
this change would affect both pension funds which could double the cost to the
Village and how it would be funded. He offered that the formula presently used
has been the norm for quite some time.
Trustee Langlois explained that in the past, the pension funds and the Village
come to an agreement on which assumptions they would use. The Village has
to 2033 to be 100% funded. Trustee Schlindwein commented that he did not
previously recommend a change from the Actuarial Study and still does not
recommend a change. He agrees with Secretary Fagan that the Board has a
fiduciary responsibility but he has a difficulty with a lack of coherent
philosophy of how to approach this. He would like the Actuary to explain the
variables, how they change and what happens to The Fund when it is changed.
He recommended leaving the assumptions as presented by the Actuary and
form a subcommittee to develop a set of philosophies what would happen over
time and how the variables come together and present to this to the Village
Board of Trustees.
Trustee Schlindwein recommended discussing this matter further at their April
meeting of the assumptions, the process to be used, the dynamics to the Village
and the Board's mission.
Trustee Langlois will have a quote from the Village's auditors, McGladry, for
consulting fees to assist the Board in these matters. Trustee Langlois indicated
the Board needs to discuss the process of how to calculate next year's actuarial
study by evaluating the assumptions that are presently used, how that data
compares with other pension funds and compares on a national level.
It was a consensus of President Erickson, Trustees Harris, Langlois and
Schlindwein to use Actuary Sharpe's recommendation and continue discussion
and receive data of how to proceed.
4. ADJOURNMENT
Motion by Trustee Langlois, seconded by Trustee Harris, to adjourn the regular
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4. meeting at 11:30 a.m. VOICE VOTE: Motion carried.
ATTEST:
John Fagan
Secretary
Linda K. Gonnella
Recording Secretary
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Firefighters Pension Fund Minutes