Minutes - 06/16/2011 - Firefighter's Pension Fund BoardMINUTES OF A SPECIAL MEETING OF THE BOARD OF TRUSTEES
OAK BROOK FIREFIGHTERS' PENSION FUND
JUNE 16, 2011
As amended at the July 28, 2011 Rejzular meeting.
A special meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fond was held on June 16,
2011 at 8:OOAM at the Butler Government Center, Upper Level Conference Room at 1200 Oak Brook Road,
Oak Brook, IL 60523 pursuant to notice, a copy of which is attached to their minutes.
CALL TO ORDER BY PRESIDING OFFICER
President Michael Erickson called the meeting to order at 8:09 AM
ROLL CALL
Upon roll call the following answered:
Present: President Michael Erickson, Secretary John Fagan, Trustee/Treasurer Sharon Dangles, Trustee
Mark Fleishman, Trustee Timothy Schlindwein
Absent: none
Also Present: David Russell of Investment Performance Services (via conference call), Becky Davis of
Lauterbach & Amen (L &A)
PUBLIC COMMENT
The Board held a general discussion regarding ME letters sent to disabled members in May. "Note: agenda
item for the next meeting to follow up on status.
The Board held a general discussion regarding a memo to be sent to the Mayor requesting staggered terms for
the Board of Trustees appointed member's terms. "Note: agenda item for the next meeting to follow up on
results.
APPROVAL OF MINUTES — April 26, 201 I
The Board reviewed the April 26, 2011 regular meeting minutes as presented in the board meeting packet. A
motion by Schlindwein to approve the April 26, 2011 minutes as presented, second by Fleishman. Motion
unanimously carried.
INVESTMENTS
a. Confirm Board Attorney apuroval of revised investment policy: The Board agreed to follow up with Board
Attorney Richard J. Reimer & Assoc. for confirmation. — TABLED until the next meeting
e. ADV Part II submitted: The Board received and reviewed the ADV Part II from Investment Performance
Services, LLC; after discussion the Board acknowledged the document to have standard and customary
language.
Trustee Dangles distributed a handout from David Russell, who was unexpectedly unable to attend the meeting
due to his flight being cancelled. The Board reviewed the paperwork prior to Mr. Russell's scheduled
conference call at 8:20 AM.
David Russell joined the meeting, via conference call, at 8:20AM
b. Revised Investment Policy: The Board reviewed and discussed the revised Investment Policy statement as
presented in the board meeting packet; Russell answered the Board's questions; the Board noted, on page 2,
adding the full range of investments; Russell made note of amendments. A motion by Fagan to forward
the revised investment policy to Board Attorney for review, second by Fleishman. Motion
unanimously carried.
d. Rebalance Asset Allocations: The Board discussed #2 recommendation effective 07/01/2011; general
discussion regarding corporate bonds, target allocation restrictions, GTAA funds. Russell agreed to provide
further information prior to the next meeting for the Board's review of investment options. A motion by
Schlindwein to approve Appendix A & B to the Investment Policy Statement, second by Dangles.
Motion unanimously carried.
c. Custodial Proposal / Transfer of funds: The Board discussed custodial contract with MB Bank; no contract
has been submitted — Russell will follow up with documentation from MB including fees and is authorized
by the Board to submit documentation to transfer Merrill Lynch equity assets to MB Bank "in kind"
(Joumaled electronic transfer) to Board Attorney for review and approval. MB Bank to journal over current
funds to custody account; MB Bank to implement fund changes to implement new allocations. "Note:
agenda item for next meeting- recommendations for Mutual Funds
Board discussion of Fixed Income benchmarks in MB portfolio, duration comparisons, implementation of
different duration and yields. — TABLED until the next meeting.
The Board discussed actuarial assumptions with Russell.
David Russell concluded his discussion with the Board and ended his call at 9:29AM
The Board noted the recent realization regarding the death of disabled member John Meyers last year on June 4,
2010; his surviving spouse, Gail, did not contact L &A to report his death and it was overlooked by the Board. A
motion by Schlindwein to authorize L &A to adjust Meyer's monthly pension payment to deduct the
January 2011 COLA increase amount and continue payments to Meyer's widow, Gail, second by
Fleishman. Roll Call Vote: Erickson —yes, Schlindwein— yes, Fagan —yes, Dangles —yes, Fleishman—
yes. Motion unanimously carried.
ADJOURNMENT
A motion by Fleishman to adjourn the meeting at 10:03 AM, second by Schlindwein. Motion
unanimously carried.
Respectfully submitted,
Attest: Michael Erickson, President
John Fagan, Secretary
Minutes prepared by Pension Services Administrator, Becky Davis