Minutes - 04/25/2013 - Firefighter's Pension Fund BoardMINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES
OAK BROOK FIREFIGHTERS' PENSION FUND
April 25, 2013
A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on Thursday,
April 25, 2013 at 9:00 a.m., at the Butler Government Center, West Wing Training/Conference Room located at 1200
Oak Brook Road, Oak Brook, 1L 60523, pursuant to notice, to conduct regular business.
CALL TO ORDER BY PRESIDING OFFICER
President Michael Erickson called the meeting to order at 9:05 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; Village Trustee Don Adler; David Russell of Investment Performance
Services, LLC (IPS); Robert Thompson and Amber Powers of MB Financial; 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. A motion was made by
Trustee Kouba and seconded by Trustee Schlindwein to approve the March 28, 2013 minutes as written. Motion
carried by unanimous voice vote.
REVIEW MONTHLY FINANCIAL REPORT
The Board reviewed the financial report summary presented in the board meeting packet. For the two months ended
02/28/2013, the Fund had a net increase of $372,533.45, and the end of the period balance was $23,723,680.49. The
Board reviewed the contributions report and had no questions. A motion was made by Trustee Fagan and seconded
by Trustee Kouba to accept the 02/28/2013 financial report as presented by L &A. Motion carried by unanimous
voice vote.
PRESENTATION AND APPROVAL OF THE BILLS
The Board reviewed the first quarter disbursements presented in the board meeting packet. A motion was made by
Trustee Kouba and seconded by Trustee Schlindwein to approve the net payroll payouts and vendor payouts for
January, February and March 2013 totaling $526,135.71 (see attached detail).
AYES: Trustees Erickson, Fagan, Fleishman, Schlindwein and Kouba
NAYS: None
ABSENT: None
INVESTMENT PERFORMANCE SERVICES
Mr. Russell distributed the 03/31/2013 quarterly investment report and discussed the recent performance in the
financial market with the Board. As of 03/31/2013, the Fund was up 3.4% for the quarter, and the ending market
value was $23,983,432. The portfolio slightly underperformed the benchmark, which was up 3.8% for the quarter.
Investment earnings were up $786,342, and the asset allocations were: domestic equity 37.8 %, international equity
15.2 %, total fixed income 42.7 %, and total cash 4.3 %.
Mr. Russell indicated that the cash levels were a bit too high and recommended better options such as, mutual funds
or the MB cash account for better returns. A motion was made by Trustee Kouba and seconded by Trustee Fagan to
change the benchmark to have 2% cash as part of the fixed income allocation.
AYES: Trustees Erickson, Fagan, Fleishman, Schlindwein and Kouba
NAYS: None
ABSENT: None
Mr. Russell noted that management of the cash flow will be discussed, as any issues arise.
Oak Brook Firefighters' Pension Fund
Minutes of Meeting — April 25, 2013
Page 2 of 2
Mr. Russell discussed asset allocations versus the target allocations. The Board noted that alternative index
construction methodologies would be a possible special meeting topic for additional training credit hours.
Mr. Russell noted that the previous motion to reallocate $700,000 to the GTAA Blackrock fund had not happened
yet.
Mr. Russell distributed copies of the revised Appendix A & B to the investment policy statement. Ms. Davis will
send a copy to the Illinois Department of Insurance (I1301) to be filed.
The MB representatives distributed and reviewed the fixed income, cash and equivalent quarterly investment report
with the Board. Cash flow and duration strategies were discussed. A motion was made by Trustee Fagan and
seconded by Trustee Schlindwein to accept the investment report as presented. Motion carried by unanimous voice
vote.
INFORMATIONAL ITEMS AND UNFINISHED BUSINESS
The Board discussed the final Foster and Foster 12/31/2012 Actuarial Valuation and assumptions. Ms. Dangles
reported that the Village Board voted to use the Tim Sharpe 12/31/2012 actuarial valuation figures and determined
that the Fire Pension Fund would receive $1,066,225 of the tax funds. The Board discussed the Fire Pension Board's
statutory obligation to retain an actuary to make the tax contribution recommendation to the Village each year. The
Board distributed and reviewed the 2012 IDOI Tax Levy /Actuarial Valuation report. A motion was made by Trustee
Schlindwein and seconded by Trustee Kouba to accept the Foster and Foster 12/31/2012 Actuarial Valuation as
presented. Motion carried by unanimous voice vote.
The Board reminded trustees about the change of meeting dates for the July and October meetings.
The Board discussed customized trustee training options. Mr. Russell offered to provide an hour long investment
committee meeting that would qualify as additional trustee training credit. The Board agreed to hold this investment
training one hour prior to the July 160' meeting.
Ms. Dangles, Mr. Adler, Mr. Thompson, Ms. Powers and Mr. Russell left the meeting at 11:32 a.m.
NEW BUSINESS
The Board discussed payment of the IDOI Compliance fee invoice. A motion was made by Trustee Kouba and
seconded by Trustee Fagan to authorize payment of the IDOI Compliance fee invoice upon receipt.
AYES: Trustees Erickson, Fagan, Fleishman, Schlindwein and Kouba
NAYS: None
ABSENT: None
CLOSED SESSION — The Board agreed there was no need to hold a closed session.
ADJOURNMENT
A motion was made by Trustee Kouba and seconded by Trustee Fagan to adjourn the meeting at 11:33 a.m. Motion
carried by unanimous voice vote.
Respectfully submitted,
Michael Erickson, President
John Fagan, Secretary
Minutes prepared by Pension Services Administrator, Becky Davis