Minutes - 04/21/2008 - Firefighter's Pension Fund BoardMINUTES OF THE APRIL 21, 2008 MEETING OF THE
BOARD OF TRUSTEES OF THE OAK BROOK
FIREFIGHTERS PENSION FUND APPROVED AS
AMENDED ON JULY 21, 2008.
1. CALL TO ORDER
The Meeting of the Board of Trustees of the Oak Brook Firefighters Pension
Fund was called to order by Secretary Fagan 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 Darrell J.
Langlois and Timothy Schlindwein.
ABSENT: Trustee Scott Harris.
IN ATTENDANCE: Brian Speers and Jim Brolin, Merrill Lynch; David
Harrington, Therese Krafcheck and Robert Thompson, MB Financial.
3. SWEARING IN CEREMONY
Secretary Fagan announced that an election was held at 8:00 a.m. on April 21"
for the expired term of Michael Erickson. Firefighter Erickson was re- elected
to the Pension Board of Trustees.
The official oath of office was given by Village Clerk Charlotte Pruss to
Michael Erickson as a newly elected Trustee to the Oak Brook Firefighters
Pension Board of Trustees for a term of three years.
4. ELECTION OF OFFICERS
Trustee Erickson asked for a motion from the floor to nominate a candidate for
President of the Pension Board of Trustees. Election of officers of the Board of
Trustees must occur each year as described by the Illinois Pension Code.
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to nominate
Michael Erickson as President of the Oak Brook Firefighters Pension Board of
Trustees. Being no further nominations, nominations were closed.
Motion by Trustee Langlois, seconded by Trustee Schlindwein, to elect
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4. Michael Erickson as President of the Oak Brook Firefighters Pension Fund
Board of Trustees. VOICE VOTE: Motion carried.
President Erickson asked for a motion from the floor to nominate a candidate
for Secretary of the Oak Brook Firefighters Pension Board of Trustees.
Motion by Trustee Langlois, seconded by Trustee Schlindwein, to nominate
John Fagan as Secretary of the Oak Brook Firefighters Pension Board of
Trustees. Being no further nominations, nominations were closed
Motion by Trustee Langlois, seconded by Trustee Schlindwein, to elect John
Fagan as Secretary of the Oak Brook Firefighters Pension Board of Trustees.
VOICE VOTE: Motion carried.
5. APPROVAL OF MINUTES
a. Approval of Board of Trustees Meeting Minutes of February 28, 2008
Motion by Secretary Fagan, seconded by Trustee Langlois, to approve the
Board of Trustees Meeting Minutes of February 28, 2008 as presented. VOICE
VOTE: Motion carried.
b. Approval of Board of Trustees Special Meeting Minutes of March 18, 2008
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to approve the
Board of Trustees Special Meeting Minutes of March 18, 2008 as presented.
VOICE VOTE: Motion carried.
6. 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 January 1 -31, 2008 Payouts in the total amount of $126,426.00
b. Approval of February 1 -29, 2008 Payouts in the total amount of $119,845.89
c. Approval of March 1 -31, 2008 Payouts in the total amount of $122,077.58
d. Approval of the Pension Clerk hours in the total amount of $1,028.07 for the
months of January through April, 2008
e Approval of Attorney Richard J. Reimer's Invoices in the total amount of
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6. e. $814.00
f. Approval of Home Depot Invoice in the amount of $29.97 for Pension file
lock box
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to approve the
Consent Agenda as presented. ROLL CALL VOTE:
Trustee Langlois, noted for the record, that Attorney Reimer's invoice has been
corrected as requested from the February Board meeting.
7. ITEMS REMOVED FROM THE CONSENT AGENDA — None presented.
Trustee Langlois requested that the Board address Agenda Item 9. NEW
BUSINESS, b. Merrill Lynch Investment Management Presentation before the
Board discusses Agenda Items 8. a. & 8. b.
9. NEW BUSINESS
b. Merrill Lynch Investment Management Presentation
Mr. Brolin and Mr. Speers gave the Merrill Lynch investment management
report for the quarter. Trustee Langlois inquired as to why Van Kampen
International Growth Fund is not rated by Morning Star. Mr. Speers will
inquire in this matter further.
c. Approval of Investment Transactions
Motion by Trustee Langlois, seconded by Trustee Schlindwein, to approve the
investment transactions as presented by Merrill Lynch. ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Langlois and
Schlindwein.
Nays: 0 — None.
Absent: 1 — Trustee Harris.
d MB Financial Investment Management Presentation
Mr. Thompson and Mr. Harrington gave the MB Financial investment
management presentation.
Mr. Thompson distributed a list of The Fund's taxable municipal bonds which
he reviewed with the Board. He noted that they may shift to Moody's since
they review more bonds rather than Standard & Poor.
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9. d. Approval of Investment Transactions
Motion by Trustee Langlois, seconded by Secretary Fagan, to approve the
Investment Transactions as indicated in Tab 5 of MB Financial's Investment
Management Report. ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Langlois and
Schlindwein.
Nays: 0 — None.
Absent: 1 — Trustee Harris.
Trustee Schlindwein noted that there is an inconsistency in MB Financial's
ratings. Trustee Langlois will review this further for clarification.
The Board returned to the regularly scheduled Agenda.
8. UNFINISHED BUSINESS
a. Approval of the Actuarial Study of The Fund
Trustee Langlois explained that the Board directed, after prior meetings, that
the Actuary use the same assumptions as last year with a minor change in the
investment number without any impact in the Village's contribution.
Motion by Trustee Langlois, seconded by President Erickson, to request a
Village contribution of 25.10% of payroll as indicated on page 5 of the
Actuarial Study retroactive to January 1, 2008 and include in Finance Director
Langlois' memorandum to the Board of Trustees the Firefighters Pension
Board's concerns of the assumptions that will studied for the 2009 Actuarial
Study. ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Langlois and
Schlindwein.
Nays: 0 — None.
Absent: 1 — Trustee Harris.
b. Discussion of Actuarial Assumption Study
Trustee Langlois explained that the Illinois Department of Insurance provided
him with mortality table. He indicated that the trend statewide shows
decreasing in mortality and increase in life expectancy. He indicated that the
auditors for the Village recommended another Actuary named Clarity In
Numbers, LLC. which could provide information to the Board.
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8. b.
The Board then discussed the mortality table used for the actuarial study.
Secretary Fagan recommended the Board should know what variables should
be used Trustee Langlois explained that Actuary Sharpe explained that the
interest rate and salary changes are what one uses for the assumptions not the
mortality table. He then discussed possibly contacting Actuary Sandor
Goldstein to be interviewed to assist the Board in these issues.
The Board discussed the date of June 30th at 9:00 a.m. to have a Board meeting
for an Actuary to attend to discuss actuarial assumptions and mortality tables,
what triggers them, why and how they are used. Trustee Langlois will check
with Clarity In Numbers, LLC to ask for their fire and police pension fund
references. If they do not have enough references, then he will contact Sandor
Goldstein.
The Board discussed their next quarterly meeting for Monday, July 21St at 9:00
a.m. in the Upper Level Conference Room.
f. Investment Manager Discussion
Trustee Langlois gave an update to the Board regarding the Police Pension
Board interviewing investment managers for their fund.
Trustee Schlindwein suggested that Merrill Lynch provide data as to what
triggers the rational of investing in the funds they recommend. The Board
asked that this be placed on the agenda for the July meeting for further
discussion.
10. INFORMATION & UPDATES — None presented.
11. ADJOURNMENT
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to adjourn the
regular meeting at 11:37 a.m. VOICE VOTE: Motion carried.
ATTEST:
s /John Fagan
Secretary
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11.
s /Linda K. Gonnella
Recording Secretary
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