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Minutes - 01/28/2016 - Firefighter's Pension Fund BoardMINUTBS OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OAK BROOK FIREFIGHTERS' PENSION FUND January 28,2016 A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on Thursday, January 28,2016 at 9:00 a.m., at the Butler Government Center, Upper Level Conference Room located at 1200 Oak Brook Road, Oak Brook, lL 60523, pursuant to notice, to conduct regular business. CALL TO ORDER: President Michael Erickson called the meeting to order af 9:12 a.m. ROLL CALL: Present: Absent: Also Present President Michael Erickson, Secretary John Fagan, Trustees Timothy Schlindwein, Mark Fleishman and George Kouba None Jason Paprocki, Village Finance Department; David Russell, Investment Performance Services, LLC; Spencer Klein and Robert Thompson, MB Financial; AJ Weber and Allie Rysell, Lauterbach & Amen, LLP PUBLIC COMMENT: There was no public comment. APPROVÄL OF THE PRIOR MEETING MINUTES: The minutes from the October 29,2015 regular meeting were reviewed by the Board, The Board noted that a correction needed to be made to the roll call section of the minutes. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to approve the minutes as amended. Motion carried unanimously by voice vote. The minutes from the November 19,2015 special meeting were reviewed by the Board. A motion was made by Trustee Kouba and seconded by Trustee Fagan to approve the minutes as written. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Meeting Minutes: The Board determined there are no closed session meeting minutes to be reviewed at this time. INVESTMENT REPORT: Quarterly Report - David Russell, Investment Perþrmance Servíces, LLC:David Russell discussed and reviewed the investment report for the fourth quarter ending December 3 1 , 20 1 5. As of 12131l20l5,the fourth quarter ending markel value is 523,822,491; the total fund net performance, excluding cashaccounts,was2.2Yoforthequarter, -1 .\Yofor oneyear, and4.1o/oforthreeyears. Thebenchmark performance was2.9Yo for the quarter, 0.6Yofor one year, and 5.4Yo for three years. The asset allocation is: Domestic Equity 27 .3Yo, International Equity 13 .1yo, Fixed Incom e 41 .5o/o, REIT Mutual Funds 12.9yo, Global Tactical Asset Allocation 8.5010, and total Cash2.8Yo. Mr. Russell informed the Board that Paul VeZolles, the lead portfolio manager at WEDGE Capital Management LLP, has announced his retirement. Brian J. Pratt will be taking over as the sole portfolio manager at WEDGE Capitol Management LLP. The Summary of Investment Holdings ending January 13, 2016 was reviewed with the Board. Mr. Russell discussed the recent fund transfer process. He notified the Board that for future rebalancing he will be bring a written recommendation to the Board to be included in the minutes at each quarterly meeting. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept the investment report as presented. Motion carried unanimously by voice vote. Review Inveslment Policy and Approval of any Recommended Revisions; David Russell provided a draft copy of the revised investment policy to the Board for review. The Board discussed the recommended revisions and noted that the International Equity Composite benchmark should be amended from 660/o to 77Yo. A motion was made by Trustee Kouba and seconded by Trustee Fleishman to adopt the revised investment policy with the amended International Equity Composite benchmark to 77Yo. A motion was made by Trustee Kouba and seconded by Trustee Fleishman. Motion carried by roll call vote. Oak Brook Firefighters' Pension Fund Minutes of Meeting - January 28,2016 Page 2 of 4 AYES: NAYS: ABSENT: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba None None Quarterly Report - MB Financial - Spencer Klein & Robert Thompson: Spencer Klein and Robert Thompson distributed copies of the Performance Report to review with the Board for the period ending December 31, 2015. As of 12131/15,thetotalfundmarketvaluewasS9,877,458with93.44Yo inFixedlncome and6.560/oin cash and equivalent, The fund finished -0.20% on the quarter, with net gains/losses and earned income totaled - $13,388, All questions were answered by Mr. Klein and Mr. Thompson. A motion was made by Trustee Schlindwein and seconded by Trustee Fleishman to accept the investment report as distributed by MB Financial Motion carried unanimously by voice vote. Mr. Klein informed the Board that assets will need to be reallocated to the cash account based on the upcoming outflows for the fund. A motion was made by Trustee Kouba and seconded by Trustee Fagan to direct MB Financial to transfer allthe cash from the custodian account ending in 4100 into the ftxed income account ending in 8480 on a monthly basis. Motion carried by roll call vote. AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba NAYS: None ABSENT: None A motion was made by Trustee Fleishman and seconded by Trustee Fagan to change the mutual fund option in the custody account to have all the mutual funds distribute income and dividends and reinvest capital gains, Motion carried by roll call vote. AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba NAYS: None ABSENT: None David Russell left the meeting at 10:43 a.m. TREASURER'S REPORT: Monthly Financial Report - Lauterbach & Amen, LLP; The Board reviewed the Monthly Financial Report presented in the Board packet for the twelve months ended 1213112015. The net position held in trust for pension benefits is $23,818,4 64.97 with a change of position of -$1,227 ,663.25. The Cash Analysis Report, Revenue Report, Expense Report, Payroll Journal, Member Contribution Report, and Vendor Checks Reports were reviewed by the Board. All questions were answered by A,J. Weber. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept fhe 1213112015 financial report as prepared by L&,A and to approve the vendor disbursements for October, November, and December 2015, in the amount of $ 1 18,75 L26. Motion carried by roll call vote. AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba NAYS: None ABSENT: None Additional Bills; There were no additional bills to review The Board took a brief recess at I0;50 a.m. and reconvened at 1l:01 a.m. Spencer Klein and Robert Thompson left the meeting at I l:01 a.m. COMMUNICATIONS OR REPORTSI Trustee Traíning Summary: Certificates were provided for the one hour Advanced Continuing Financial Education class presented by Investment Performance Services on October Oak Brook Firefighters' Pension Fund Minutes of Meeting - January 28,2016 Page 3 of4 29, 2Ol5 . The Board reviewed the Trustee Training Summary provided in the Board packet and discussed upcoming training opportunities. Statements of Economic Interest; The Board noted that the List of Filers needs to be sent to the County by the Village of Oak Brook by February 1,2016. Statements of Economic Interest will be mailed to all registered filers and a response is required by May 1 , 2016. Status of Annual Affidavits: Lauterbach & Amen notified the Board that the Annual Affidavits from 2015 are complete. The original copies were presented to the Board to file for recordkeeping. APPLICATIONS FOR ADMISSIONS OR WITHDRAWALS FROM THE FUNDz Approval of Tom Sinclair to Join the Pension Fund; Trus|ee Fagan acknowledged receipt of an Application for Membership to the Oak Brook Fire Pension Fund for Tom Sinclair, The application was not presented to the Board for review, due to being amended by Tom Sinclair, A Motion was made by Trustee Fagan and seconded by Trustee Kouba to accept Tom Sinclair to the Oak Brook Fire Pension Fund. Motion carried by voice voTe. (Post Meeting Note: Mr, Sinclair wqs hired ffictive January I 3 , 20 I 6 as a Tier II pørticipant.) AYES: Trustees Schlindwein, Erickson, Fagan and Kouba NAYS: Trustee Fleishman ABSENT: None APPLICATIONS FOR RETIREMENT/DISABILITY/DEFERRED BENEFITS: There were no applications to review. OLD BUSINESS: Jennifer White - Annual Medical Evaluation: Trustee Fagan informed the Board that Jennifer White is scheduled for an Independent Annual Medical Exam with INSPE on January 26th. Further discussion will be held at the next meeting. Response to the IDOI Compliance Audit- Resolution: There is no response to date. Further discussion will be held at the next regular meeting. NEW BUSINESS: Update on RFP for Investment Consultant Services: A special meeting has been scheduled on February 241h at 8:00 a.m, to conduct Interviews with PNC Bank, Lowery Asset Consulting, and Sawyer Falduto Asset Management, LLC, to possibly select and approve an investment contract. The interviews are scheduled as the following: 8:00 - 8:45 PNC Bank 9:00 - 9:45 Lowery Asset Consulting l0:00 - 10:45 Sawyer Falduto Asset Management, LLC Discussion of Recent Fund Transfer Process: Mr. Russell discussed the recent fund transfer process earlier in the meeting. Approve Annual Cost of Living Adjustments (COLA) for Pensioners. The Board reviewed The 2016 Cost of Living Adjustments for pensioners. A motion was made by Trustee Schlindwein seconded by Trustee Kouba to approve the statutory increases as calculated by Lauterbach & Amen, LLP. Motion camied by ro11 call vote. AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba NAYS: None ABSTAIN: Trustee Fleishman Oak Brook Firefighters' Pension Fund Minutes of Meeting - January 28,2016 Page 4 of 4 Review Trustee Term Expirations and Election Procedures:The Board reviewed the Trustee term expiration dates. The Board noted that none of the Trustee terms are expiring this year and elections do not need to take place, Lauterbach & Amen Engagement Letter: The Board reviewed the engagement letter for services for the years ended December 31, 2016,2017 and 2018. A motion was made by Trustee Fleishman and seconded by Trustee Schlindwein to approve the engagement letter with Lauterbach & Amen to continue services for the years ended December 31,2016,2017 and 2018. Motion carried by roll call vote. AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba NAYS: None ABSENT: None Mr, Erickson informed the Board that the Pension Fund's investment contract with Investment Performance Services, LLC has expired. Further discussion for the possible renewal of a contract with Investment Performance Services, LLC will be held at the February 24'h special meeting. CLOSED SESSION: There was no closed session ATTORNEY'S REPORT: The Board received copies of the RDK Legal and Legislative Update to review Trustee Fleishman updated the Board on the status of Mark Schoppe's duty disability benefits. The statutory time to appeal the Board's decision regarding his disability has passed and no further action will been taken. The Board discussed the possibility of moving the third quarter meeting to a later date. No action was taken Further discussion will be held at the next regular meeting. Lauterbach & Amen distributed copies of the Participant Board Report to the Board for review, utilizing data as of April 31,2014. All questions were answered by A.J. Weber. ADJOURNMENT: A motion was made by Trustee Kouba and seconded by Trustee Fleishman to adjourn the meeting at 1 1:35 p.m, Motion carried by unanimous voice vote. The next regular meeting is scheduled for April 21,2016 at 9:00 a.m. (8:00 a.m. for Trustee training) at the Butler Government Center, Upper Level Conference Room located at 1200 Oak Brook Road, Oak Brook, IL 60523. Respectfully submitted, Michael Erickson, President Date Approved Minutes prepared by Rysell, Pension Services Administrator, Lauterbach & Amen, LLP (.