Minutes - 10/19/2011 - Firefighter's Pension Fund BoardMINUTES OF THE REGULAR MEETING OF
OAK BROOK FIREFIGHTERS' PENSION FUND
OCTOBER 19, 2010
A regular meeting of the Board of Trustees of THE OAK BROOK FIREFIGHTERS' PENSION
FUND was held on October 19, 2010 at 8:OOAM at the Butler Government Center, West Wing
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 8:02 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: David Harrington of MB Financial, PSA Becky Davis of Lauterbach & Amen (L &A)
APPROVAL OF MINUTES — August 2, 2010
The Board reviewed the August 2, 2010 minutes as presented in the board meeting packet. A motion
by Fagan to approve the August 2, 2010 minutes as presented, second by Dangles. Roll Call
Vote: Erickson — yes, Dangles — yes, Schlindwein — yes, Fagan —yes, Fleishman — yes. Motion
unanimously carried.
INFORMATION & UPDATES
a. Surviving Spouse Benefits — Margaret DiIorio: The Board discussed the death of pensioner
Francis DiIorio on 07/22/2010; benefits will continue to his surviving spouse Margaret. The Board
reviewed the calculation provided by L &A as presented in the board meeting packet. Monthly
benefits will continue in the amount of $2,846.72.
b. Trustee Training Summary: The reviewed the Trustee Training Summary as presented in the board
meeting packet. Trustee Fleishman stated that he had completed the 32 hour Certified Training
class and had already provided the pension office with the certificate. Davis will look into this and
try to locate the certificate.
c. Probability Inputs: deferred until later in the meeting.
d. Determine Next Board Meeting Dates: The Board determined the following board meeting dates:
December 3, 2010, 9:00 AM - Special Meeting — Investment Committee, Advisor Meeting
January 20, 2011, 9:00 AM — Regular Meeting
March 3, 2011, 9:00 AM — Special Meeting
NEW BUSINESS
a. Treasurer's Report of the Asset Summary of the Fund: Trustee Dangles presented and reviewed
with the Board the Asset Summary as of September 30, 2010. The Total Fixed Income market
value as of 09/30/2010 was $12,106,425; Equity Funds market value was $9,486,318; Total Assets
are $21,592.743.
b. MB Financial Investment Management Presentation: Harrington presented and reviewed with the
Board the Performance Report as of September 30, 2010. Total Fund was up 3.0% or a gain of
$352,017 for the 3`d Quarter; with an Ending Market Value of $11,925,738. Asset Allocations
were discussed — no changes at this time. The Board requested information regarding the Taxable
Muni Index — Harrington will follow up at the next regular meeting.
c. Approval of Investment Transactions: A motion by Schlindwein to approve the MB Financial
Report, second by Fleishman. Roll Call Vote: Erickson — yes, Dangles — yes, Schlindwein —
yes, Fagan —yes, Fleishman — yes. Motion unanimously carried.
UNFINISHED BUSINESS
a. Phone Conference with Timothy Bowen, Mesirow: The Board placed a phone conference call to
Timothy Bowen, Mesirow at 9:23 AM. Bowen discussed and reviewed with the Board the
Fiduciary Liability Insurance Binder as presented in the board meeting packet. $1 million
coverage; period of 04/30/2010 — 05/26/2010; issued by Hudson Insurance Company a subsidiary
of Ullico. Bowen went on to explain the coverage and answer questions from the Board.
The phone conference ended at 9:56 AM. The Board took a break.
The Board reconvened at 10:08 AM
NEW BUSINESS — continued
d. Phone Conference — Brian Speers, Merrill Lynch Investment Mana eg ment The Board discussed
the Merrill Lynch management performance. Conference call did not go through. Will try again
later. The Board placed another phone conference call to Brian Speers at 10:10 AM. Speers
discussed and reviewed with the Board the Performance Report as of 09/30/2010. The Rate of
Return for the P quarter was up 3.91% for a gain of $375,239 and a Closing Balance of
$9,488,768. Speers discussed potential replacement funds for the Large Cap Growth, Small Cap
Growth funds and Foreign Large Cap Growth Fund. His recommendations were distributed to the
Board and reviewed. The phone conference ended at 10:33 AM. The Board further discussed
Merrill Lynch's performance and fund choices.
e. Approval of Investment Transactions: A motion by Schlindwein to sell holding of Investco Van
Kampen Intl Gr A and reinvest proceeds into IShares EAFE (EFA), second by Fleishman.
Roll Call Vote: Erickson — yes, Dangles — yes, Schlindwein — yes, Fagan —yes, Fleishman —
yes. Motion unanimously carried.
Lunch was delivered at 10:55 AM. The Board continued discussion on potential investment options.
The Board noted for the December meeting: discussion on potential changes in underperforming
accounts.
f. Discuss Tim Sharpe Actuary Assumption Scenarios: The Board discussed the Timothy Sharpe
Actuarial Report assumptions and the possibilities of upcoming retirements. The Board discussed
assumptions agreeing to assume 3 retirements in 2011; rate of 6.5 %; 3.0% and 3.5% salary
increases; Dangles will discuss the Mortality Tables to be used with Sharpe, the Board prefers the
Unisex Mortality Table updated to the most current year.
Probability Inputs: The Board discussed the probability inputs as presented by Trustee Schlindwein.
The Board took a break at 11:45 AM
The Board reconvened at 12:00 PM
PRESENTATIONS FROM RFP — INVESTMENT CONSULTANTS
a. Wall and Associates: Dave Wall & Bill Galvan joined the board meeting at 12:01 PM and
presented and reviewed with Board the Request for Proposal as presented and answered the
Board's questions. Wall and Galvan were excused and left the meeting at 12:45 PM. The Board
discussed their findings.
b. Lowery Asset Consulting LLC: Phil Kosmala, Jeff Grenchik joined the board meeting at 12:56
PM and presented and reviewed with Board the Request for Proposal as presented and answered
the Board's questions. Kosmala and Grenchik were excused and left the meeting at 1:54 PM. The
Board discussed their findings.
c. DiMeo Schneider & Associates, LLC: Jeff Benoit, Brian Carlson jointed the board meeting at 2:00
PM and presented and reviewed with Board the Request for Proposal as presented and answered
the Board's questions. Benoit and Carlson were excused and left the meeting at 2:37 PM. The
Board discussed their findings.
Trustee Dangles left the board meeting temporarily at 2:45 PM.
Trustee Dangles joined the board meeting at 3:01 PM
d. LaSalle Street Consulting of f Raymond James: Terri Madigan Hayes, Jeff Kowalczyk joined the
board meeting at 2:59 PM and presented and reviewed with Board the Request for Proposal as
presented and answered the Board's questions. Hayes and Kowalczyk were excused and left the
meeting at 3:38 PM. The board discussed their findings.
e. Investment Performance Services, LLC: Tim Walters joined the board meeting at 3:52 PM and
presented and reviewed with Board the Request for Proposal as presented and answered the
Board's questions.
Firefighter Tom McEllin joined the board meeting at 4:05 PM
Walters was excused and left the meeting at 4:47 PM.
The Board took a break at 4:47 PM
The Board reconvened at 4:50 PM
The Board processed their findings and charted their impressions; ultimately resting upon two choices
Lowery Asset Consulting and Investment Performance Services. The Board discussed requesting and
contacting 3 references from the two final candidates and negotiating their fees; information needed
required in 5 days. President Erickson stated that he would make the contacts to the 3 references
provided by the two final candidates and report his findings to the Board at the December meeting.
PSA Davis will contact each of the presenters to make them aware of the Board's decision and request
the information from the two final candidates. A motion by Fagan to approve the engagement of an
Investment Advisor, pending Board Attorney review, second by Fleishman. Motion
unanimously carried.
ADJOURNMENT
A motion by Fleishman to adjourn the meeting at 6:02 PM, second by Dangles. Motion
unanimously carried.
Respectfully submitted,
Becky Davis, PSA, minutes prepared and submitted on November 19, 2010
ATTEST: John Fagan, Secretary