Minutes - 04/20/2017 - Firefighter's Pension Fund BoardFO
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VILLAGE OF OAK BROOK
BOARD OF TRUSTEES, FIREFIGHTERS PENSION FUND
WEST WING CO FERENCE ROOM
OF THE BUTLER GOVERNMENT CENTER
,1200 OAK BROOK ROAD
OAK BROOK, IL 60523
630-368-5000
MINUTES OF A REGULAR MEETING
OF THE BOARD OF TRUSTEES OF'THE
OAK BROOK FIREFIGHTERS' PENSION F'UND
APRrL 20,2017
A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on
Thursday, April 20, 2017 at 9:00 a.m., at the Butler Government Center, West Wing Conference Room,
located at 1200 Oak Brook Road, Oak Brook, IL 60523, pursuant to notice, to conduct regular business.
CALL TO ORDER: President Michael Erickson called the meeting to order at 9:00 a.m.
ROLL CALL:
PRESENT:President Michael Erickson, Secretary John Fagan, Trustees Mark Fleishman,
George Kouba and Timothy Schlindwein
None
Gino Picciola, Oak Brook Firefighter; Jason Paprocki, Village of Oak Brook
Treasurer; Robert Cronholm, Former Oak Brook Fire Chief and Retired Lockport
Fire Protection District Chief; Tom Sawyer, Sawyer Falduto Asset Management,
LLC; Tim Bowen, Mesirow Financial Insurance Services (arrived at 9:06 a.m.)
Allie Rysell, Lauterbach & Amen, LLP
ABSENT:
ALSO PRESENT:
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MIIIUTES January 19, 2017 - Regular Meeting Minutes: The minutes
of the January 19,2017 regular meeting were reviewed by the Board. A motion was made by Trustee
Kouba and seconded by Trustee Schlindwein to approve the January 19,2017 regular meeting minutes as
written. Motion carried unanimously by voice vote.
February 17, 2017 - Special Meeting Minutes: The minutes of the February 17,2017 special meeting
were reviewed by the Board. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan
to approve the February 17,2017 special meeting minutes as written. Motion carried unanimously by
voice vote.
Mr. Bowen arrived to the meeting at 9:06 a.m.
INVESTMENT REPONIz Quarterly Report - Sawyer Falduto Asset Management, LLC: Mr. Sawyer
presented the Investment Report for the quarter ended March 31,2017. As of 03/31 /l7,the ending market
value of the portfolio is $25,427 ,707. The total net account return is 3.95Yo for the quarter, for a first
quarter investment return of $977,742. The current portfolio allocation is Equities
at 62.50/o, Fixed Income at37 .ÙYo, and Cash Equivalents at 0.5%. The individual performance of the funds
within the portfolio were reviewed, along with the fìrm's Portfolio Value vs. Cumulative Net Investment
Report, Market Commentary, and Transaction Report. All questions were answered by Mr. Sawyer. A
motion was made by Trustee Schlindwein and seconded by Trustee Fleishman to accept the Investment
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 20,2017
Page2 of 4
Report as presented. Motion carried unanimously by voice vote.
Review/Update Investment Policy and Approval of any Recommended Revisions: Mr. Sawyer reviewed
the Investment Policy with the Board. Further discussion will be held at the next regular meeting.
The Board took a brief recess at 9:28 a.m. and resumed at 9:41 a.m.
ACCOUNTANT'S REPORT: Monthly Financial Report - Lauterbach & Amen, LLP: The Board
reviewed the Monthly Financial Report for the three months ended March 31,2017 . As of 03/3 l/l7,the
net position held in trust for pension benefits is 525,762,399.46 with a change in position of $768,448.15.
The Cash Analysis Report, Revenue Report, Expense Report, Payroll Journal and Member Contribution
Report were reviewed by the Board. All questions were answered by Lauterbach & Amen.
Presentation and Approval of Bills: The Board reviewed the Vendor Check Report for the period
0ll0l/17 through 03l3lll7, showingtotal disbursements in the amount of $l19,431.19.
A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept the Monthly
Financial Report as presented and to approve the payment of the disbursements shown on the Vendor
Check Report in the amount of $119,431.19. Motion carried by roll call vote.
AYES: Trustees Erickson, Fagan, Schlindwein, Fleishman and Kouba
NAYS: None
ABSENT: None
Additional Bills, tf any: Illinois Department of Insurance Compliance Fee: The Board noted that the
Illinois Department of Insurance (IDOD Compliance Fee invoice will be issued and payment is due by
June 30th. A motion was made by Trustee Fagan and seconded by Trustee Kouba to approve the payment
of the IDOI Compliance Fee, upon receipt of the invoice, in an amount not to exceed $7,000. Motion
carried by roll call vote.
AYES: Trustees Erickson, Fagan, Schlindwein, Fleishman and Kouba
NAYS: None
ABSENT: None
COMMUNICATIONS OR REPORTSz Statements of Economic Interest: The Board was reminded
that the Statements of Economic Interest are due by May 1't.
Annual Affidavits of Continued Eligibility: The Board noted that Lauterbach & Amen will mail Affidavits
of Continued Eligibility to all pensioners with the June payroll cycle. A status update will be presented at
the next regular meeting.
.A'PPLICATIONS FOR MEMBERSHIP OR WITHDRAWALS FROM THE FIII[I): There were no
applications for membership or withdrawals from the Fund to review at this time.
APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITS: There were no applications
for retirement or disability benefits to review at this time.
OLD BUSINESSz Annual Independent Medical Examination - Jennifer llhite: The Board reviewed the
annual Independent Medical Examination report for Jennifer White. The Board noted that the medical
report determined that Ms. White remains disabled. A motion was made by Trustee Fagan and seconded
by Trustee Fleishman to continue Jennifer White's disability benefits subject to further annual evaluations
until age 50. Motion carried by roll call vote.
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 20,2017
Page 3 of4
AYES:
NAYS:
ABSENT:
Trustees Erickson, Fagan, Schlindwein, Fleishman and Kouba
None
None
Pension Discrepancy - Robert Cronholm: The Board discussed the pension benefit discrepancy for
Robert Cronholm. In summary, at the time of Mr. Cronholm's initial request for pension benefits, the
Village Finance Director, Mr. Langlois, provided Lauterbach & Amen with a date of hire of May 6,2005,
and his benefit calculation was prepared based on the date of hire provided. It was later discovered that
the May 6,2005 date of hire was incorect, and the correct date of hire was May 6,2006. rù/hen the Board
discovered the error, the matter was discussed with Attorney Reimer and Lauterbach & Amen was
directed to draft a letter to Mr. Cronholm, advising him of the discrepancy resulting in an overpayment of
benefits. The Board determined that further consultation with Attorney Reimer is necessary before any
further action can be taken regarding this matter. Further discussion will be held at the next regular
meeting.
NE\ry BUSINESSz Discussion/Possible Action - Fiduciary Liability Insurance: Mr. Bowen presented
fiduciary liability insurance proposals to the Board for review. All questions were answered by Mr.
Bowen. A motion was made by Trustee Kouba and seconded by Trustee Fagan to approve the $1,000,000
fiduciary liability insurance policy through ULLICO and issue payment in the amount of $4,318.00 for a
one year policy premium, effective 5l01ll7 through 05/01/18. Motion carried by roll call vote.AYES: Trustees Erickson, Fagan, Schlindwein and Kouba
NAYS: None
ABSENT: None
ABSTAIN: Trustee Fleishman
Revîew Prelimínary Actuarial Valuation - Foster & Foster: Mr. Paprocki informed the Board that the
preliminary actuarial valuation is in process. Further discussion will be held at the next regular meeting.
Status Update - Illinois Department of Insurance Annual Statement: Lauterbach & Amen distributed
draft copies of the lllinois Department of Insurance Annual Statement to the Board for review. The Board
requested an amendment to the Annual Statement, noting that the Investment Policy listed on the IDOI
Statement should be changed to January 28,2016. A motion was made by Trustee Fagan and seconded by
Trustee Schlindwein to approve the Illinois Department of Insurance Annual Statement as amended,
pending any other minor changes that may need to be made before the June 30,2017 due date. Motion
carried unanimously by voice vote.
IRS Overpayment Creditfor the Tax Period ending December 31, 2015: Trustee Fagan informed the
Board that the Fund received a check from the Illinois Revenue Service for overpaid taxes for the tax
period ending December 31,2015. Lauterbach & Amen and the Village of Oak Brook will research the
discrepancy. The Board will be informed as updates become available. Further discussion will be held at
the next regular meeting.
Certifu 2017 Board Election Results - Active Member Position: Lauterbach & Amen conducted an
election for one of the Active Member positions on the Oak Brook Firefighter's Pension Fund Board of
Trustees. Gino Picciola ran unopposed and was elected by acclamation for a three-year term
expiring April 30, 2020. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to
certiff the Active Member election results. Motion carried unanimously by voice vote.
Appointed Member Term Expiration: The Board noted that Trustee Kouba's appointed term expires April
30,2017 and reappointment will be requested. Further discussion will be held at the next regular meeting.
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 20,2017
Page 4 of 4
Board Officer Elections - Presidenl and Secretary: The Board discussed the Board Officer positions. A
motion was made by Trustee Schlindwein and seconded by Trustee Kouba to elect the slate of Board
Officers as the following: John Fagan as President and Gino Picciola as Secretary, effective ly'ray 9,2017
Motion carried unanimously by voice vote.
FOIA/OMA Designee: The Board determined that Trustee Fagan will serve as the primary FOIA Officer
OMA Designee and Trustee Picciola will serve as the secondary FOIA Officer and OMA Designee,
effective l|i4ay 9,2017.
Discussion / Possible Action - Lauterbach & Amen Trustee Portal: Lauterbach & Amen presented the
proposal for the Trustee Portal Service, offered by Lauterbach & Amen. The Board reviewed the revised
Engagement Letter for the years ended December 31,2016,2017 and 2018. The additional cost to include
the Trustee Portal Service will be $150 per month forthe year ending December 31,2017 and $165 per
month for the year ending December 37,2018. All questions were answered by Lauterbach & Amen. A
motion was made by Trustee Fagan and seconded by Trustee Schlindwein to engage Lauterbach & Amen
for Trustee Portal Services and to approve the expenditures outlined on the engagement letter for the
years endingl2l3lllT and l2l3lll8. Motion carried by roll call vote.
AYES: Trustees Fagan, Schlindwein and Kouba
NAYS: None
ABSENT: None
ABSTAIN: Trustee Erickson
The Board will discuss Trustee Portal Guidelines at the next regular meeting with Attorney Reimer
CLOSED SESSION (if needed): There was no need for closed session.
ATTORNEY'S REPORT: The Reimer, Dobrovolny & Karlson quarterly Legal and Legislative
Updates newsletter was distributed to all Trustees with information regarding recent case decisions and
legislation pertaining to Article 3 and 4 Pension Funds.
ADJOURNMENT: A motion was made by Trustee Fagan and seconded by Trustee Kouba to adjourn
the meeting at ll:27 a.m. Motion carried unanimously by voice vote.
The next regular meeting of the Oak Brook Firefighters' Pension Fund will be held on Thursday,
July 20' 2017 at 9:00 a.m. at the Butler Government Center, West Wing Conference Room located
at 1200 Oak Brook Road, Oak Brook, IL 60523.
Respectfully submitted,
ilaJn
Secretary Date,{pploved
Minutes prepared by Allie Rysell, Pension Services Administrator, Lauterbach & Amen, LLP