Minutes - 07/20/2010 - Firefighter's Pension Fund BoardMINUTES OF THE REGULAR MEETING OF
OAK BROOK FIREFIGHTERS' PENSION FUND
July 20, 2010
A regular meeting of the Board of Trustees of THE OAK BROOK FIREFIGHTERS' PENSION FUND was
held on July 20, 2010 at 9: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 Mike Erickson called the meeting to order at 9:05 AM
ROLL CALL
Upon roll call the following answered:
Present: President Michael Erickson, Secretary John Fagan, Trustee Sharon Dangles, Trustee Mark
Fleishman, Trustee Timothy Schlindwein
Absent: None
Also Present: Brian Speers and James Bolin of Merrill Lynch, David Harrington of MB Financial, Becky
Davis of Lauterbach & Amen
APPROVAL OF MINUTES — April 22, 2010
The Board reviewed the April 22, 2010 minutes as presented in the board meeting packet. A motion by
Schlindwein to approve the April 22, 2010 minutes as presented, second by Fleishman. Motion
unanimously carried.
CONSENT AGENDA
The Board reviewed and discussed the Consent Agenda as presented in the board meeting packet. A motion by
Fagan to approve the Consent Agenda as presented with disbursements totaling $473,524.68; as reported
in the Checks Register from Lauterbach and Amen for April, May and June 2010, second by Dangles.
Roll Cat] Vote: Erickson — yes, Fagan — yes, Dangles — yes, Schlindwein — yes, Fleishman — yes. Motion
unanimously carried.
ITEMS REMOVED FROM THE CONSENT AGENDA - None
UNFINISHED BUSINESS
a. Public Pension Reform Update: Fleishman distributed handouts regarding the reform legislation for the
Downstate Police and Fire pension funds; the Board discussed the key issues and its affect. Fleishman
will follow this topic and report updates each meeting.
a. Treasurer's Report of the Asset Summary of the Fund: The Board reviewed and discussed the Asset
Summary for 6/30/2010 as presented in the board meeting packet. The Asset Summary stated, as of
6/30/2010, Total Fixed Income at 58.18 %, Equity Funds at 41.82% with Total Assets Market Value of
$20,503,493.
b. Merrill Lynch Investment Management Presentation: Speers and Bolin distributed and reviewed with
the Board the Performance Report as of 6/30/2010 which was down 6.07% for the 2"' quarter; with an
ending market value of $8,576,888. Speers made his recommendations to the Board regarding Invesco
Van Kampen and their change in management, sale of the SP 500 Fund and replacement of Colombia
Sm Cap Fund to the Perkins Sm Cap Fund. Speers will follow up with more information via email.
Following no further questions from the Board, Speers and Bolin were excused and left the meeting at
10:00 AM.
c. Approval of Investment Transactions: - A motion by Schlindwein to approve the Merrill Lynch
Investment Report as presented for the quarter ending 6/30/2010, second by Fleishman. Roll Cat]
Vote: Erickson — yes, Fagan — yes, Dangles — yes, Schlindwein — yes, Fleishman — yes. Motion
unanimously carried.
d. MB Financial Investment Management Presentation: Harrington distributed and reviewed with the
Board the Performance Report as of 6/30/2010. Total Fund was up 3.65% or $410,250 for the 2nd
quarter, ending market value of $11,736,109. Following no further questions from the Board,
Harrington was excused and left the meeting at 10:18 AM.
e. Approval of Investment Transactions: A motion by Fleishman to approve the MB Financial
Investment Report as presented for the quarter ending 6/30/2010, second by Schlindwein. Roll
Call Vote: Erickson — yes, Fagan — yes, Dangles — yes, Schlindwein — yes, Fleishman — yes.
Motion unanimously carried.
f Tim Sharpe Actuary Report: The Board distributed and discussed the Tim Sharpe Actuarial report. As
of 12/31/2010 the Fund was reported to be 63.3% funded which was up from 2009 when it was
reportedly 61.2% funded.
g. Proposals for 12/31/09 Audit: The Board discussed the proposal information as presented in the
board meeting packet. A motion by Dangles to approve the recommendation to engage
Lauterbach and Amen to prepare the IDOI report for the year ending 12/31/2010, second
Fleishman. Roll Call Vote: Erickson — yes, Fagan — yes, Dangles — yes, Schlindwein — yes,
Fleishman — yes. Motion unanimously carried.
h. FOIA Electronic System: The Board discussed the electronic system implemented by the Village
to track and notify individuals by email for the FOIA requests to the respective departments;
the cost is $50.00 per year. A motion by Dangles to approve the registration in the Village
F01A electronic system for cost of $50 per year, second by Fleishman. There was a brief
further discussion regarding the system. Roll Call Vote: Erickson — yes, Fagan — yes, Dangles —
yes, Schlindwein — yes, Fleishman — yes. Motion unanimously carried.
Discussion of RFP — review responses, decision on candidates: The Board reviewed the RFP Summary as
presented in the board meeting packet as well as the information provided by the REP candidates. The Board
discussed the pros and cons of each candidate's qualifications and discussed a possible update to the Fund's
Investment Policy Statement on how to handle underperforming managers. The Board discussed ranking the
candidates and considered the variables. The Board agreed to hold a Special Meeting to further discuss and
make selections to determine the 3 or 4 candidates who will present in person to the Board; the special meeting
date was scheduled for August 2, 2010 @ 9:00 AM.
INFORMATION AND UPDATES
a. Trustee Training Certification and Updates: The Board reviewed the Trustee Training Summary as
presented in the board meeting packet. Schlindwein presented his January 2010 IPPFA 8 hour training
certificate and Fagan presented his FOIA certification for 2 hours training credit. The Trustee Training
Summary was updated.
b. Matthew Mieszala- creditable service paid in full: 7/2/10 $3,024.75: The Board recognized and
reviewed the 7/2/2010 correspondence from Lauterbach and Amen to Mr. Mieszala as presented in the
board meeting packet; stating receipt of his payment in the amount of $3,024.75 and that the amount
due for his creditable service was now paid in full.
c. Probability Inputs: The Board discussed the report as presented in the board meeting packet as well as
an additional Global Market Overview as presented by Trustee Schlindwein.
d. Determine next board meeting date: The next board meeting date was determined to be: October
19,2010 @9:00 AM
ADJOURNMENT
A motion by Dangles to adjourn the meeting at 12:48 PM, second by Schlindwein. Motion
unanimously carried.
Respectfully submitted, Becky Davis, PSA, minutes prepared and submitted on August 2, 2010.
ATTEST: John Fagan, Secretary