Minutes - 04/21/2016 - Firefighter's Pension Fund BoardMINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES
OAK BROOK FIREFIGHTERS' PENSION FUND
APRIL 21,2016
A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on
Thursday, April 21, 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 MichaelErickson called the meeting to order at 9:05 a.m.
ROLL CALL:
Present:
Absent:
Also Present:
President Michael Erickson, Secretary John Fagan, Trustees Timothy Schlindwein, Mark
Fleishman and George Kouba
None
Jason Franken, Foster & Foster; Sharon Dangles, Village Treasurer; Torn Sawyer, Sawyer
Falduto Asset Management, LLÇ; Allie Rysell, Lauterbach & Amen, LLP
PUBLIC COMMENT: There was no public comment.
AppROVAL OF THB PRIOR MEBTING MINUTBS: The minutes from the January 28,2016 regular
meeting were reviewed by the Board. A motion was made by Trustee Fagan and seconded by Trustee
Schlindwein to approve the minutes as written. Motion carried unanimously by voice vote.
The minutes from the February 24,2016 special meeting were reviewed by the Board. Trustee Schlindwein
noted that an amendment neecled to be made, noting that the minutes do not reflect the Board's decision to
terminate services with MB Financial, A motion was made by Trustee Schlindwein and seconded by
Trustee Kouba to approve the minutes of the February 24,2016 special meeting as amended. Motion
carried unanimously by voice vote'
INVESTMENT REPORT: Trustee Erickson noted that the Board has not received the first quarter
investment report from David Russell, Investment Performance Services (IPS). Trustee Erickson will
contact IpS and request the first quarter performance report. Further discussion will be held at the next
regular meeting.
Tom Sawyer, Sawyer Falduto Asset i\4anagement, informed the Board that the Fund's assets from MB
Financial and Investment Performance Services have been transferred to the Schwab account. No further
action is needed from the Board.
Quarterly Report - Sawyer Falduto Asset Management, LLC: Tom Sawyer distributed the quarterly
ñvestmént rôport for the Board to review. Mr. Sawyer noted that the Fund's performance will be reviewed
at the next regular meeting. The current asset allocation is equiti es 45,4Yo, fixed income 36'3Yo, and cash
equivalents lt.tN. The market commentary, portfolio statement, fixed income portfolio, portfolio
snapshots and transaction ledger were reviewed with the Board. All questions were answered by Mr.
Sawyer.
Review Investment Policy and Approval of any Recommended Revisions.' Mr. Sawyer discussed the
proposed investment policy guidelines with the Board. The proposed portfolio allocation is as follows:
Cash/Short Term - Target \Yo;Range 0-5o/o
Fixed Income - Target 40%; Range 35-45%
Equity - Target 60%; Range 55-65%
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 21, 2016
Page2 of 4
A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to approve the proposed
portfolio allocation targets and ranges as presented. Motion carried by roll call vote.
AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba
NAYS: None
ABSENT: None
The investment policy will be reviewed and discussed at the next regular meeting.
NEW BUSINESS: Annual Actuary Reporf.' Jason Franken, Foster & Foster, informed the Board that the
annual actuarial valuation is complete and the results were presented to the Board for review. The Board
noted that the RP-2000 Mortality Table was used in the report presented. The Board discussed possibly
using mortality projections Scales AA or BB instead of the FtP-2000 Mortality Table. A motion was made
by T-rustee Schlindwein and seconded by Trustee Fleishman to direct Foster & Foster to rerun the actuarial
vâluation for the year ended 12131116 using the mortality projection Scale BB. Motion caried by roll call
vote.
AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba
NAYS: None
ABSENT: None
A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept the Foster & Foster
actuarial valuation for the year ended l2l3ll16 implementing the mortality projection Scale BB, pending
review. Motion carried by roll call vote.
AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba
NAYS: None
ABSENT: None
The Board took a brief recess at 10;42 a.m. and reconvened at l0:53 a.m.
Jason Franken left the meeting during recess.
TREASURER,S REPOF{Tz Monthly Financial Report - Lauterbach & Amen, LLP: The Board reviewed
the Monthly Financial Report presented in the Board packet for the three months ended 3131116' The net
position neid in trust for pension berrefits is $24,012,092.97 with a change of position of $200,406.74. The
bash Analysis Report, Revenue Report, Expense Repoft, Payroll Journal and Member Contribution Report
were reviewed by the Board. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan
to accept the monthly financial report as prepared by Lauterbach & Amen Motion carried unanimously by
voice vote.
Approve Payment of Invoices; The Board reviewed the Vendor Checks Report for the period 0ll0ll16
through 0313ll16, in the amount of $124,488.14. A motion was made by Trustee Schlindwein and seconded
by Trustee Fagan to approve of the disbursements as presented. Motion carried by roll call vote.
AYES: Trustees Fleishman, Schlindwein, Erickson' Fagan and Kouba
NAYS: None
ABSENT: None
2016 IDOI Compliance Fee; The Board noted that the Illinois Department of Insurance (IDOI) Annual
Compliance Fee will be issued and payment is due by June 3Oth. A motion was made by Trustee
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 21,2016
Page 3 of4
Schlindwein and seconded by Trustee Kouba to approve payment of the IDOI Annual Compliance Fee
upon receipt, not to exceed $5,500. Motion carried by roll call vote.
AYES: Trustees Fleishman, Schlindwein, Erickson, Fagan and Kouba
NAYS: None
ABSENT: None
Additional Bills, if any: There were no additional bills to review.
COMMUNICATIONS OR REPORTSz FOIA/OMA Designee:The Board determined that Trustee
Erickson will be the primary FOIA/OMA designee and Trustee Fagan will be the secondary
FOIA/OMA designee.
Trustee Training lJpdate: The Board reviewed the Trustee Training Summary provided in the Board
Packet and discussèd upcoming training opportunities. Trustees were reminded to submit any training
certificates to Lauterbach & Amen for record keeping.
IDOI New Security Administrator Authorization Form;Lauterbach & Amen informed the Board that the
Illinois Department of Insurance (IDOI) is requesting the Oak Brook Firefighters' Pension Fund update
their Secuiity Adrninistrator Authorization Form. Trustee Fagan will be the Security Administrator. The
Board completed the Security Administrator Authorization Form and directed Lauterbach & Amen to
submit the form to the IDOI on behalf of the Board by the August 1't deadline.
Statements of Economic Interest; All Trustees were reminded,to complete the Statements of Economic
Interest by the May I't deadline.
Status of Annuat Affidavits: Lauterbach & Amen notified the Board that the 2015 Annual Affidavits of
Continued Eligibility are complete. The original copies were presented to the Board to file for record
keeping.
The Board directed Lauterbach & Amen to mail the 2016 Annual Affidavits of Continued Eligibility to all
pensioners with the June payroll cycle. A status update will be provided at the next regular meeting.
Active Member File Maintenance: The Board directed Lauterbach & Amen to mail the file maintenance
letters to all active members in August requesting any additional pension documents.
APPLICATIONS FOR ADMISSIONS OR WITHDRAWALS FROM THB FUND Z TrithdTAWAI Of
Fund - Scott Kurczewski; Trustee Erickson informed the Board that Firefighter Scott Kurczewski has
withdrawn from the Fund. The Board noted that Mr. Kurczewski has not requested a contribution refund at
this time.
APPLICATIONS FOR RETIREMENT/DISABILITYIDEFERRED BENEFITS: ThCTC WETE NO
applications to review.
OLD BUSINESS: .Response to IDOI Compliance Audit - Resolution;The Board Attorney, Rick Reimer,
responded to the Illinoii Department of Insurance on behalf of the Board regarding the IDOI Compliance
Audit. No further action is needed at this time'
Oak Brook Firefrghters' Pension Fund
Minutes of Meeting - April 21,2016
Page 4 of4
NA\ry BUSINESS (continued)z Deceased Pensioner * Reed Rogers.' Trustee Fagan informed the Board
that Reed Rogers passed away on April 9, 2016 with no surviving spouse. His retirement benefit has ceased
as of April 9,2016
Discussion/Possible Action - Third Quarter Meeting Date Change.' The Board rescheduled the third
quarter meeting date from July 21,2016 to July 28, 2016 at 9:00 a.m.
CLOSED SESSION: There was no closed session.
ATTORNBY'S REPORT: The Board received copies of the RDK Legal and Legislative Update to
review.
ADJOURNMENT: A motion was made by Trustee Fleishman and seconded by Trustee Kouba to adjourn
the meeting at lI:27 a.m. Motion carried unanimously by voice vote'
The next regular meeting is scheduled for July 28,2016 at 9:00 a.m. atthe Butler Government Center,
Upper Level Conference Room located at 1200 Oak Brook Road, Oak Brook, IL 60523 -
Respectfully
ichael Erickson, PresidentDate Approved1- zâ* iu
Minutes prepared by Attie Rysetl, Pension Services Administrator, Lauterbach & Amen, LLP