Minutes - 04/23/2007 - Firefighter's Pension Fund BoardMINUTES OF THE APRIL 23, 2007 REGULAR
MEETING OF THE BOARD OF TRUSTEES OF THE
OAK BROOK FIREFIGHTERS PENSION FUND
APPROVED AS WRITTEN ON OCTOBER 29, 2007.
1. CALL TO ORDER
The Regular Meeting of the Board of Trustees of the Oak Brook Firefighters
Pension Fund was called to order by President Erickson at 9:00 a.m. in the
Upper Level Conference Room of the Butler Government Center, 1200 Oak
Brook Road, Oak Brook, Illinois.
2. ROLL CALL
Recording Secretary Gonnella called the roll with the following persons
PRESENT: President Michael Erickson, Secretary John Fagan, Trustees Scott
Harris, Darrell J. Langlois and Timothy Schlindwein.
ABSENT: None.
IN ATTENDANCE: Fire Chief James Bodony; Brian Speers, Merrill Lynch;
Executive Vice President Tom Sawyer and John Falduto, MB Financial.
3
SWEARING IN CEREMONY OF TRUSTEE
President Erickson explained that John Fagan's term of office expired as of
May, 2007 and he was re- elected on April 16, 2007 to the Oak Brook
Firefighters Pension Board of Trustees to a two year term. Village Clerk Linda
Gonnella gave the oath of office to John Fagan as the newly elected Board
member.
4 ELECTION OF SECRETARY
President Erickson asked for a motion from the floor to nominate a Trustee as
the Secretary of the Board. Trustee Langlois nominated John Fagan to serve as
the Secretary of the Oak Brook Firefighters Pension Board of Trustees,
seconded by Trustee Harris. Being no further nominations, nominations were
closed.
Motion by Trustee Langlois, seconded by Trustee Harris, to elect John Fagan as
the Secretary of the Oak Brook Firefighters Pension Board of Trustees VOICE
VOTE: Motion carried
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Firefighters Pension Fund Minutes
5. APPROVAL OF MINUTES
a. Approval of Board of Trustees Disability Hearing Minutes of December 14,
2006
Motion by Trustee Schlindwein, seconded by Secretary Fagan, to approve
the Board of Trustees Disability Hearing Minutes of December 14, 2006 as
presented. VOICE VOTE- Motion carried.
b Approval of Board of Trustees Regular Meeting Minutes of January 24,
2007
Motion by Secretary Fagan, seconded by Trustee Langlois, to approve the
Minutes of the January 24, 2007 Board of Trustees Regular Meeting 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
Trustee Langlois requested that Agenda Item 6. c. Approval of Cheryl Brabec,
CSR's Invoice in the total amount of $2,245.00 be removed for discussion.
Motion by Secretary Fagan, seconded by Trustee Harris, to approve the
Consent Agenda and authorize expenditures as amended. ROLL CALL VOTE:
Ayes 5 - President Erickson, Secretary Fagan, Trustees Harris, Langlois and
Schlindwein
Nays 0 - None.
Absent: 0 - None. Motion carried.
a. Approval of January 1 -31, 2007 checks 93363 -3369 and #6665 -6688 in the
total amount of $107,049.01
b. Approval of February 1 -28, 2007 checks #3380 -3386 and 46690 -6713 in
the total amount of $103,940 39
d. Approval of Illinois Public Pension Fund Association (IPPFA) membership
dues in the amount of $750.00
e. Approval of Pension Clerk's hours for the months of January through April,
2007 in the total amount of $376 37
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6. f. Approval of Attorney Richard J. Reimer's Invoices in the total amount of
$256.61
7. ITEMS REMOVED FROM THE CONSENT AGENDA
6. c. Approval of Cheryl Brabec, CSR's Invoice in the total amount of
$2,245.00
Trustee Langlois noted the cost of $10.00 a page for the disability hearing
transcript was expensive. He indicated that he would contact Attorney Reimer
to determine if a less expensive court reporter could be used for pension
matters.
Motion by Trustee Langlois, seconded by Trustee Harris to approve Cheryl
Brabec, CSR'S Invoice in the total amount of $2,245.00. ROLL CALL VOTE:
Ayes: 5 - President Erickson, Secretary Fagan, Trustees Harris, Langlois and
Schlindwein.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
8. UNFINISHED BUSINESS
a. Approval of Decision and Order of Disability Applicant Garrigan
Trustee Langlois voiced his concern of the level of detail that Board Attorney
Reimer has included in the Decision and Order of Disability Applicant
Garrigan. He requested speaking with Attorney Reimer regarding the
Findings of Fact that the Board based their findings upon the totality of the
preponderance of evidence presented. It was a unanimous consensus by
voice ayes to contact Attorney Reimer and request in writing from him his
recommendations whether or not it is necessary to have the high level of
detail in the Board's Findings of Fact of William Garrigan. Darrell Langlois
was to contact Attorney Reimer and ask him to produce the summary and
forward it to Clerk Gonnella who would disperse it to the Board members.
b. Approval of Firefighter Garrigan's Application for Disability Benefits
It is noted for the record, that this had already been approved at the
December 14, 2006 Disability Hearing of Applicant William Garrigan.
c. Approval of Actuarial Study of The Fund
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8. c.
Motion by Trustee Langlois, seconded by Trustee Schlindwein, to approve
the Actuarial Study of The Fund as presented. ROLL CALL VOTE:
Ayes: 5 - President Erickson, Secretary Fagan, Trustees Harris, Langlois
and Schlindwein.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
9. a. Treasurer's Report of the Asset Summary of The Fund
Trustee Langlois recommended that the Board at their July meeting discuss
this matter further regarding adjusting the portfolio allocations of The Fund.
Secretary Fagan voiced his concern that the target allocations are over
weighted at this time.
b MB Financial Investment Management Presentation
Tom Sawyer gave the investment management presentation indicating that
the money market return for the first quarter was 1.26 %, fixed income 1.67%
with a total account return of 1.66 %. Since inception the annual performance
is 3.24 %, stocks 10.24 %, bonds 3.07% and 3.96% for T- bills. The portfolio
current allocations are 23% for U.S. Treasury securities, 37% U.S.
Government Agency Notes /Bonds non - callable, 26% U.S. government
Agency Notes /Bonds callable, 10% taxable Municipal Bonds and 4% U.S.
Government Agency Mortgage Backed securities.
c. Approve Investment Transactions
Motion by Trustee Schlindwein, seconded by Secretary Fagan, to approve
the investment transactions from December 31, 2006 through March 31,
2007 in Tab 5 of the MB Financial Performance Report. ROLL CALL
VOTE:
Ayes- 5 - President Erickson, Secretary Fagan, Trustees Harris, Langlois
and Schlindwein.
Nays: 0 - None.
Absent- 0 - None. Motion carried.
d. Merrill Lynch Investment Presentation
Brian Speers noted the beginning balance of The Fund in January, 2007 was
$10,407,702 and closed at $9,968,125. $600,000 was transferred for fixed
income investments.
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9. d.
He indicated that Merrill Lynch recommends replacement of the Goldman
Sachs Fund since the Sudan Act has been lifted. He recommended a Small
Cap Equity such as Columbia after their five (5) year history is reached in
May, 2007. If this Fund meets their criteria, they will recommend the change
at the Board's July meeting.
Trustee Schlindwein recommended a profile be given to the Board. It will be
e- mailed to the Pension Clerk and she will distribute the information to the
Board.
Mr. Speers recommended AIM International Growth Fund for a foreign
equity. He will present information on small cap funds and international
funds for the Board to review and then consider changes at their July Board
meeting.
e. Approve Investment Transactions - None were presented.
f. Approval of John Brazel's Application for Pension Benefits of the Oak
Brook Firefighters Pension Fund
Motion by Trustee Harris, seconded by Secretary Fagan, to approve John
Brazel's Application for pension benefits from the Oak Brook Firefighters
Pension Fund with a salary at date of retirement of $98,951 for thirty -two
years, six months of service and a monthly pension of $6,184.44. ROLL
CALL VOTE.
Ayes: 5 - President Erickson, Secretary Fagan, Trustees Harris, Langlois
and Schlindwein.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
g. Discussion and Possible Approval of Pension Clerk Salary Increase
Trustee Langlois explained that the Village Board of Trustees approved the
2007 Salary Pay Plan for employees. He noted that Pension Clerk
Gonnella's present salary is $24.68 an hour. He recommended that the
Board increase her salary to $25.62 an hour according to the 2007 Salary Pay
Plan as described in the Legal Secretary range.
Motion by Trustee Langlois, seconded by Secretary Fagan, to approve a
salary increase of 3.8 %, retroactive to January 1, 2007, at an hourly rate of
$25.62 for the Oak Brook Firefighters Pension Board Clerk. ROLL CALL
Board of Trustees of the Oak Brook Page 5 of 7 April 23, 2007
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9 g.
VOTE:
Ayes: 5 - President Erickson, Secretary Fagan, Trustees Harris, Langlois
and Schlindwein.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
h. Application for Duty Disability Pension — Firefighter Paul Jacobs
Trustee Langlois requested that the pension forms be revised to include
dates of birth for dependents.
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to direct
Board Attorney Richard Reimer to proceed with the application for the duty
disability pension of Firefighter /Paramedic Paul Jacobs. ROLL CALL
VOTE:
Ayes: 5 - President Birdsall, Secretary Fagan, Trustees Harris, Langlois
and Schlindwein.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
10. INFORMATION & UPDATES
The Board discussed SB1166 mandating that the State of Illinois would take
over public pension funds if they do not comply with investments as regulated
by State Statute.
Trustee Schlindwein recommended more information needs to be given to the
Board regarding individual funds and fees of international funds. The Board
requested that Merrill Lynch indicate the purchase fees of the funds. They
further requested information in forty -five (45) days of what is their decision
process. Trustee Schlindwein asked why index funds are not considered in
some portion of The Fund.
The Board scheduled their next Board meeting for July 30, 2007 at 9:00 a.m.
11 ADJOURNMENT
Motion by Trustee Schlindwein, seconded by Secretary Fagan, to adjourn the
regular meeting at 11:00 a.m. VOICE VOTE: Motion carried.
Board of Trustees of the Oak Brook Page 6 of 7 April 23, 2007
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ATTEST:
John Fagan
Secretary
Linda K. Gonnella
Recording Secretary
Board of Trustees of the Oak Brook Page 7 of 7 April 23, 2007
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