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Minutes - 03/28/2013 - Firefighter's Pension Fund BoardMINUTES OF A SPECIAL MEETING OF THE BOARD OF TRUSTEES OAK BROOK FIREFIGHTERS' PENSION FUND MARCH 28, 2013 A special meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on Thursday, March 28, 2013 at 9:00 a.m., at the Butler Government Center, West Wing Training Room located at 1200 Oak Brook Road, Oak Brook, IL 60523, pursuant to notice, to conduct special business. CALL TO ORDER BY PRESIDING OFFICER President Michael Erickson called the meeting to order at 9:00 a.m. ROLL CALL Upon roll call the following answered: Present: President Michael Erickson, Secretary John Fagan, Trustee Mark Fleishman, Trustee Timothy Schlindwein, Trustee George Kouba Absent: None Also Present: Treasurer Sharon Dangles, Jason Franken of Foster & Foster; Becky Davis of Lauterbach & Amen, LLP (L &A) PUBLIC COMMENT — No public was present and no comment was made. APPROVAL OF THE PRIOR MEETING MINUTES The Board reviewed the prior meeting minutes presented in the board meeting packet, and discussed the differences recorded in the minutes versus the assumptions used in the actuarial report. Mr. Franken indicated that the adjustments were noted and a revised actuarial report would be provided. A motion was made by Trustee Kouba and seconded by Trustee Fagan to approve the January 29, 2013 regular meeting minutes as written. Motion carried unanimously by voice vote. 12/31/2012 ACTUARIAL VALUATION — Foster and Foster Mr. Franken distributed the 12/31/2012 Actuarial Valuation and reviewed it with the Board. The Board confirmed the assumptions to be used in the report, and requested a letter of explanation to be drafted to the Village to explain the changes from the 12/31/2011 Timothy W. Sharpe Actuarial Valuation and the 12/31/2012 Foster and Foster Actuarial Valuation. The Board affirmed their fiduciary responsibility to the Fund, and to present an accurate and responsible actuarial recommendation to the Village. A copy of the Illinois Department of Insurance (IDOI) 2012 Tax Levy /Actuarial Valuation will be obtained and distributed to the Board. A motion was made by Trustee Schlindwein and seconded by Trustee Kouba to direct Mr. Franken to use the following method and assumptions: Entry Age Normal method with level percentage of payroll; 6.75% Investment Return; 4.25 Salary Increase; 3.25% Payroll Growth; RP2000 (combined, healthy) Mortality; and female spouses (three years younger) Marital Status. AYES: Trustees Erickson, Schlindwein, Fleishman, Fagan and Kouba NAYS: None ABSENT: None Mr. Franken indicated that he will provide a narrative with the changes and bullet points regarding the 12/31/2011 and 12/31/2012 actuarial valuations, along with the revised 12/31/2012 Actuarial Valuation by the end of next week. The Board addressed the Actuarial Services Agreement. A motion was made by Trustee Kouba and seconded by Trustee Fagan to authorize the Board President and Secretary to sign the Actuarial Services Agreement. AYES: Trustees Erickson, Schlindwein, Fleishman, Fagan and Kouba NAYS: None ABSENT: None Ms. Davis will distribute a copy of the signed agreement to Mr. Franken and to the Board officers. Mr. Franken was excused and left the meeting at 11:15 a.m. FOIA REQUEST PROCESS The Board discussed a recent Freedom of Information Act (FOIA) request that was processed without proper procedure or the Fire Pension Fund's knowledge. The Board agreed that all future FOIA requests must be presented first to the Fire Pension Board FOIA Officer, Board President Michael Erickson, and to the Board Secretary John Fagan as Mr. Erickson's alternate. A letter will be drafted to inform the Village, L &A and the Board's attorney, Oak Brook Firefighters' Pension Fund Minutes of Meeting — March 28, 2013 Page 2 of 2 Reimer & Karlson, LLC of this requirement. Ms. Davis was asked to draft the letter for review by Trustee Erickson and Fagan, who will sign and deliver the letter to Asst. Village Manager, Mr. Blaine Wing. Trustee Kouba left the meeting at 11:28 a.m., due to another commitment. The Board discussed conflicts which affected the next two regular board meeting dates. The following dates were agreed upon: 07/16/2013 (changed from 07/23) and 10/24/2013 (changed from 10/22). Ms. Davis will provide these dates to investment advisor, Mr. David Russell to confirm his availability. An alternate date for the July meeting was also determined — 07/30/2013, in case Mr. Russell was not available on 07/16. Ms. Davis will complete the arrangements as necessary, and inform the Board as soon as a reply is received from Mr. Russell. CUSTOMIZED TRUSTEE TRAINING The Board agreed to defer discussion on this topic until the next Board meeting. INFORMATIONAL ITEMS AND UNFINISHED BUSINESS The Board briefly discussed the following topics: • 04/30/2013 Renewal of Fiduciary Liability Insurance —the 2013 premium came in at $3,855, which was lower than last year's premium, for the same coverage. Per the Board's prior approval, L &A submitted the invoice for payment on 03/14/2013. • Statements of Economic Interest — certificates of completion were submitted by Trustees Schlindwein, Fagan and Fleishman. All Board members confirmed their completion of the statements. • Records Retention — approval was received for document destruction from the Local Records Commission, and the duplicate records held at L &A were destroyed on 03/11/2013. • Active Member Statements distributed — L &A prepared and delivered the active member statements which provides the active members with a summary of data to help them plan for retirement, and includes their accumulated contributions and years of creditable service through 12/31/2012, and a retirement estimate projection based on their employment history. Any questions or concerns can be directed to the Pension Board Officers or Ms. Davis at L &A. CLOSED SESSION — The Board agreed there was no need to hold a closed session ADJOURNMENT A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to adjourn the meeting at 11:43 a.m Motion carried unanimously by voice vote. Respectfully submitted, Michael Erickson, President John Fagan, Secretary Minutes prepared by Pension Services Administrator, Becky Davis