Minutes - 07/29/2009 - Firefighter's Pension Fund Board (2)MINUTES OF THE JULY 295 2009 MEETING OF THE
BOARD OF TRUSTEES OF THE OAK BROOK
FIREFIGHTERS PENSION FUND APPROVED AS
AMENDED ON OCTOBER 21, 2009
1. CALL TO ORDER
The Meeting of the Board of Trustees of the Oak Brook Firefighters Pension
Fund was called to order by President Erickson 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
Pension Clerk Gonnella called the roll with the following persons
PRESENT: President Michael Erickson, Secretary John Fagan, Trustees Mark
Fleishman and Timothy Schlindwein.
ABSENT: None.
IN ATTENDANCE: Acting Finance Director Sharon Dangles, Brian Speers,
Merrill Lynch; David Harrington and Therese Krafcheck, MB Financial and
Sherry Lauterbach, Lauterbach & Amen.
3. APPROVAL OF MINUTES
a. Approval of Board of Trustees Meeting Minutes of April 27, 2009
Trustee Fleishman noted an error on page 2, Agenda Item 5. a. to be corrected
to read "Motion by Trustee Fleishman, seconded by Trustee Fagan, to approve
the Board of Trustees Meeting Minutes of January 28, 2009."
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to approve the
Board of Trustees Meeting Minutes of January 28, 2009 as amended. VOICE
VOTE: Motion carried.
4. 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.
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4. a. Approval of April 1 -30, 2009 Net Payroll Payouts in the total amount of
$1215788.61
b. Approval of April 1 -30, 2009 Vendor Payouts in the total amount of
$27,823.93
c. Approval of May 1 -31, 2009 Net Payroll Payouts in the total amount of
$1215682.97
d. Approval of May 1 -31, 2009 Vendor Payouts in the total amount of
$29,855.45
e. Approval of June 1 -30, 2009 Net Payroll Payouts in the total amount of
$12102.97
f. Approval of June 1 -30, 2009 Vendor Payouts in the total amount of
$29,518.63
g. Approval of Pension Clerk hours from January -June, 2009 in the total
amount of $830.77
h. Approval of Richard J. Reimer's Invoice in the amount of $75.00
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to approve the
Consent Agenda as presented. ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Fleishman and
Schlindwein.
Nays: 0 —None.
Absent: 0 — None. Motion carried.
5. ITEMS REMOVED FROM THE CONSENT AGENDA — None presented.
6. UNFINISHED BUSINESS
a. Lauterbach & Amen, LLP's for Professional Services
Sherry Lauterbach explained the services they provide pension funds. She
indicated that they will provide the calculations for firefighters regarding
credible service for military service.
b. Approval of Timothy Sharpe's Actuarial Study
Motion by Trustee Schlindwein, seconded by Secretary Fagan, to approve
Actuary Timothy's Sharpe's Study as presented. ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Fleishman and
Schlindwein.
Nays: 0 — None.
Absent: 0 — None. Motion carried.
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7. NEW BUSINESS
a. Treasurer's Report of the Asset Summary of The Fund
Acting Finance Director Dangles commented on the asset summary of The
Fund and recommended consideration of reallocation of The Fund's
investments.
President Erickson suggested under New Business to discuss Agenda Item 7. k.,
Discussion of Credible Military Service — Tom McEllin at this time and the
Board concurred.
k. Discussion of Credible Military Service —Tom McEllin
Fire Chief McEllin addressed the Board of the new law in January that allows
veterans to buy up to two years of their active military service into the pension
fund. Ms. Lauterbach explained that her company will provide the calculation
for this and they will respond directly to Chief McEllin.
Motion by Trustee Fleishman, seconded by Trustee Schlindwein, to
acknowledge Fire Chief Tom McEllin's interest of applying for military service
credit with a letter and other requested documentation, including receipt of
calculation and determination based on the Department of Insurance
requirements in a timely manner. VOICE VOTE: Motion carried.
b. Merrill Lynch Investment Management Presentation
Brian Speers gave the investment management presentation. He recommended
postponing addressing The Fund's asset allocation for this quarter. Trustee
Schlindwein remarked that Merrill Lynch was previously providing the Board,
in their booklet, our guidelines and how the Board stood relative to those
guidelines and now they are not doing this anymore.
Trustee Schlindwein asked if it was time to put some funds in investments.
Mr. Speers stated it would be fine with the funds they are using. He also
recommended Davis Fund and Growth Fund of America.
c. Approval of Investment Transactions
Motion by Trustee Schlindwein, seconded by Secretary Fagan, to approve the
investment transactions as presented by Merrill Lynch. ROLL CALL VOTE:
Ayes: 3 — President Erickson, Secretary Fagan and Trustee Schlindwein.
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7. c.
Nays: 1 — Trustee Fleishman.
Absent: 0 — None. Motion carried.
d. MB Financial Investment Management Presentation
Ms. Krafcheck remarked that the beginning market value of The Fund for the
quarter was $12,203,960 with an ending market value of $10,848,365. The
decline in the market value was $(161,678). The money market return was
0.10% for the quarter, fixed income return was (0.52) % with a total account
return of (0.51) %.
Mr. Harrington noted that they have provided a new chart for the Board on page
4 of their Investment Management Report of the portfolio performance. It
gives a rolling 1, 3 and 5 year annualized return of The Fund. Ms. Krafcheck
recommended holding the monthly transactions with the Board concurring with
this recommendation.
Trustee Schlindwein asked for a clarification on the no vote. Trustee Fleishman
indicated that he was not on the Board when the investments were
recommended but voting to represent the Board.
e. Approval of Investment Transactions
Motion by Trustee Schlindwein, seconded by Secretary Fagan, to approve the
Investment Transactions as indicated in MB Financial's Investment
Management Report. ROLL CALL VOTE:
Ayes: 3 — President Erickson, Secretary Fagan and Trustee Schlindwein.
Nays: 1 — Trustee Fleishman.
Absent: 0 — None.
f. Discussion of Investment Allocations of The Fund
The Board discussed this subject with Trustee Schlindwein suggesting
suspending additional purchases and have the allocation remain where it is at
this time. Trustee Fleishman indicated that he was not comfortable with the
Board's target allocations and suggested reducing the target allocation of 45%
in equities.
Trustee Schlindwein recommended looking at risk and return opportunity for
the longer term of The Fund. Trustee Fleishman offered to investigate this
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7. f,
matter further. The Board concurred that another meeting be scheduled to
discuss investment allocations and set a tentative date of September 9th at 8:00
a.m.
g. Approval of James Bodony's Application for Pension Benefits from the Oak
Brook Firefighters Pension Fund
President Erickson requested a motion to approve former Fire Chief Jim
Bodony's application for pension benefits.
Motion by Trustee Fleishman, seconded by Trustee Schlindwein, to approve
Fire Chief James Bodony's Application for Pension Benefits from the Oak
Brook Firefighters Pension Fund with a total of 30 years of service, salary at
retirement of $128,378, longevity of $600, annual pension of $96,283.50 and a
monthly pension of $8,023.63. ROLL CALL VOTE:
Trustee Fleishman requested that some type of document be issued that shows
that Fire Chief Bodony has resigned from the Village. Trustee Dangles
suggested that the Village's Human Resource person could issue a document
that he has terminated his employment with the Village. It was noted that all
three applicants did not have resignation letters included in their documentation
due to the contractual buy out agreement with the Village.
Motion by Trustee Fleishman, seconded by Trustee Schlindwein, to amend the
motion to include approval pending the Board receives documentation from
Village Manager Niemeyer that the has separated service from the Village and
that the contractual separation agreement in no way is taken in calculation of
benefits.
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Fleishman and
Schlindwein.
Nays: 0 —None.
Absent: 0 — None. Motion carried.
h. Approval of Robert Morton's Application for Pension Benefits from the Oak
Brook Firefighters Pension Fund
President Erickson asked for a motion to approve Battalion Chief Robert
Morton's application for pension benefits.
Motion by Secretary Fagan, seconded by Trustee Fleishman, to approve
Battalion Chief Robert Morton's Application for Pension Benefits from the Oak
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7. h.
Brook Firefighters Pension Fund with a total of 30 years of service, salary at
retirement of $104,788, education incentive of $600, longevity of $600, annual
pension of $79,491 and a month pension of $6,624.25 pending the Board
receives documentation from Village Manager Niemeyer that the applicant has
separated service from the Village and that the contractual separation agreement
in no way is taken in calculation of benefits.
ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Fleishman and
Schlindwein.
Nays: 0 — None.
Absent: 0 — None. Motion carried.
i. Approval of Battalion Chief Konrad Wies' Application for Pension Benefits
from the Oak Brook Firefighters Pension Fund
President Erickson requested a motion to approve Battalion Chief Konrad
Wies' application for pension benefits.
Motion by Trustee Fleishman, seconded by Trustee Schlindwein, to approve
Battalion Chief Konrad Wies' Application for Pension Benefits from the Oak
Brook Firefighters Pension Fund with a total of 29 years, 4 months, salary at
retirement of $100,389, education incentive of $1,200, paramedic incentive of
$2,250, longevity of $600, annual pension of $76,588.25 and a monthly pension
of $6,382.35 pending the Board receives documentation from Village Manager
Niemeyer that the applicant has separated service from the Village and that the
contractual separation agreement in no way is taken in calculation of benefits.
ROLL CALL VOTE:
Ayes: 4 — President Erickson, Secretary Fagan, Trustees Fleishman and
Schlindwein.
Nays: 0 —None.
Absent: 0 — None. Motion carried.
j. Request for Annual Medical Disability Examinations — Jacobs, Smyth and
Watkins
President Erickson noted that the annual disability examinations are needed.
Motion by Secretary Fagan, seconded by Trustee Fleishman, to direct the
Pension Clerk to notify Paul Jacobs, Sean Smyth and Garry Watkins that they
are required to complete their annual duty disability medical examination.
VOICE VOTE: Motion carried.
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7.
k. Discussion of Credible Service — Fire Chief Tom McEllin
This agenda item was discussed earlier in the meeting.
1. Request for Annual Status Reports of Members of the Oak Brook
Firefighters Pension Fund
The Board concurred with President Erickson's recommendation that the
Pension Clerk send out notices in the next few months to have all The Fund
members complete their annual status reports.
m. Discussion of Public Act 96 -006
President Erickson noted that each Board member received this information
that training is required annually of pension trustees. Attorney Reimer has been
contacted and waiting information from him. The Pension Clerk will follow up
when the Act becomes law and investigate the IPPFA seminar in Wisconsin
that fulfills the required training.
n. Discussion of Pension Clerk
The Pension Clerk noted that Lauterbach & Amen are able to handle the
procedures that she coordinates with the official pension records. She will meet
with President Erickson and Secretary Fagan to discuss her duties.
8. INFORMATION & UPDATES
It was noted that the Village Board of Trustees and President are interviewing
candidates to serve on the Pension Board of Trustees with the vacancy from
former Finance Director Darrell Langlois.
9. ADJOURNMENT
Motion by Secretary Fagan, seconded by Trustee Schlindwein, to adjourn the
regular meeting at 11:40 a.m. VOICE VOTE: Motion carried.
ATTEST:
John Fagan
Secretary
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Firefighters Pension Fund Minutes
Linda K. Gonnella
Recording Secretary
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