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Agenda Packet - 01/29/2020 - Firefighter's Pension Fund Board
VILLAGE OF OAK BROOK BOARD OF TRUSTEES, FIREFIGHTERS’ PENSION FUND WEST WING CONFERENCE ROOM OF THE BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, IL 60523 630-368-5000 In accordance with the provisions of the Americans with Disabilities Act, any individual who is in the need of a reasonable accommodation in order to participate in or benefit from attendance at this public meeting should contact the Butler Government Center (Village Hall), at (630) 368-5010, or for TDD response (630) 990-2131, as soon as possible before the meeting date. NOTICE OF A REGULAR MEETING OF THE OAK BROOK FIREFIGHTERS’ PENSION FUND BOARD OF TRUSTEES The Oak Brook Firefighters’ Pension Fund Board of Trustees will conduct a regular meeting on Wednesday, January 29, 2020 at 8:00 a.m. at in the West Wing Conference Room of the Butler Government Center, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523, for the purposes set forth in the following agenda: AGENDA 1. Call to Order 2. Roll Call 3. Trustee Continuing Education Session: 8:00 a.m. – 9:00 a.m. 4. Public Comment – Limited to 3 minutes per person 5. Approval of Meeting Minutes a. October 31, 2019 Regular Meeting 6. Investment Report – Sawyer Falduto Asset Management, LLC a. Quarterly Investment Performance Report b. Review/Update Investment Policy 7. Accountant’s Report – Lauterbach & Amen, LLP a. Monthly Financial Report b. Presentation and Approval of Bills c. Additional Bills, if any 8. Trustee Training Updates a. Approval of Trustee Training Registration Fees and Reimbursable Expenses 9. Communications and Reports a. Affidavits of Continued Eligibility b. Statements of Economic Interest c. 2020 IRS Mileage Rate 10. Applications for Membership/Withdrawals from the Fund 11. Applications for Retirement/Disability Benefits 12. Old Business a. Vacant Board Appointee Position Update 13. New Business a. Discussion – Senate Bill 1300 b. Approve Annual Cost of Living Adjustments (COLAs) for Pensioners c. Review Trustee Term Expirations and Election Procedures d. IDOI Annual Statement e. Revised Board Meeting Date – July 2020 14. Attorney’s Report – Reimer & Dobrovolny PC a. Legal Updates 15. Closed Session, if needed 16. Adjournment 1 of 71 VILLAGE OF OAK BROOK BOARD OF TRUSTEES, FIREFIGHTERS’ PENSION FUND WEST WING CONFERENCE ROOM OF THE BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, IL 60523 630-368-5000 MINUTES OF A REGULAR MEETING OF THE OAK BROOK FIREFIGHTERS’ PENSION FUND BOARD OF TRUSTEES OCTOBER 31, 2019 A regular meeting of the Oak Brook Firefighters’ Pension Fund Board of Trustees was held on Thursday, October 31, 2019 at 8:00 a.m. at the Butler Government Center, West Wing Conference Room, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523, pursuant to notice. CALL TO ORDER: President Fagan called the meeting to order at 8:00 a.m. ROLL CALL: PRESENT: President John Fagan, Secretary Gino Picciola and Trustee Jim Bodony ABSENT: Trustee Timothy Schlindwein ALSO PRESENT: Village Finance Director Jason Paprocki, Village of Oak Brook; Tom Sawyer, Sawyer Falduto Asset Management, LLC; Derek Flessner and Jennifer Flores Lauterbach & Amen, LLP (L&A) TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Picciola and Bodony attended a one-hour Trustee training education course from 8:00 a.m. to 9:00 a.m. presented by Mr. Sawyer. RESIGNATION OF APPOINTED MEMBER – GEORGE KOUBA: The Board noted the passing of Trustee George Kouba, one of the two appointed positions will need to be filled. Status Update – Request of New Appointed Member: The Board discussed the status of their request to fill one of the appointed member positions on the Board of Trustees. Further discussion will be held at the next regular meeting. PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: July 24, 2019 Regular Meeting: The Board reviewed the the July 24, 2019 regular meeting minutes. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve the July 24, 2019 regular meeting minutes as written. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes for review. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly Investment Performance Report: Mr. Sawyer presented the Quarterly Investment Performance Report for the period ending September 30, 2019. As of September 30, 2019, the third quarter net return is 1.05% versus the third quarter account benchmark of 1.33%. The investment return for the quarter is $320,371 for 2 of 71 Oak Brook Firefighters’ Pension Fund Meeting Minutes – October 31, 2019 Page 2 of 3 an ending market value of $29,347,556. The current asset allocation is as follows: fixed income at 39.5% and equities at 60.5%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. Review/Update Investment Policy: The Board discussed the Investment Policy and determined no changes are required at this time. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report and Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the nine-month period ended September 30, 2019 prepared by L&A. As of September 30, 2019, the net position held in trust for pension benefits is $29,778,619.42 for a change in position of $3,377,449.97. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal and the Vendor Check Report for the period July 1, 2019 through September 30, 2019, for total disbursements in the amount of $115,569.95. Additional Bills, if any: There were no additional bills presented for approval. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and discussed upcoming training opportunities. Trustees were reminded to submit any certificates of completion to L&A for recordkeeping. Approval of Trustee Training Registration Fees and Reimbursable Expenses: There were no trustee training registrations or reimbursable expenses presented for approval. COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A informed the Board that third request Affidavits of Continued Eligibility were mailed to pensioners via certified mail on September 23, 2019 with a due date of October 14, 2019. To date, one affidavit remains outstanding. The Board directed L&A to send correspondence to the outstanding pensioner providing notice that their monthly direct deposit benefit will be converted to a physical check with the November 2019 payroll cycle and will be held by Trustee Fagan, until a completed affidavit is received. Further discussion will be held at the next regular meeting. APPLICATIONS FOR MEMBERSHIP/ WITHDRAWALS FROM THE FUND: There were no applications for membership or withdrawals from the Fund. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: The Board noted that Lieutenant Michael Erickson submitted his application for a regular retirement benefit. Calculations to determine retirement benefits for Michael Erickson are in process. L&A will provide the Board with a regular retirement benefit for approval. Further discussion will be held at the next regular meeting. OLD BUSINESS: Review Approved Foster & Foster Actuarial Valuation: The Board reviewed the finalized Actuarial Valuation as prepared by Foster and Foster. Based on data and assumptions, the recommended municipal contribution is $2,618,218 and the statutory minimum contribution amount is $2,251,292. A motion was made by Trustee Fagan and seconded by Trustee Picciola to accept the Actuarial Valuation as prepared. Motion carried unanimously by voice vote. Contribution Request: This item was not discussed. Review/Adopt Municipal Compliance Report: The Board reviewed the Municipal Compliance Report prepared by L&A. A motion was made by Trustee Fagan and seconded by Trustee Picciola to adopt the 3 of 71 Oak Brook Firefighters’ Pension Fund Meeting Minutes – October 31, 2019 Page 3 of 3 MCR as prepared and to authorized signatures by the Board President and Secretary. Motion carried unanimously by voice vote. Annual Independent Medical Examination – Jennifer M. White: Jennifer M. White was examined by Dr. Endicott on July 8, 2019 and the examination determined that Jennifer M. White remains disabled. A motion was made by Trustee Fagan and seconded by Trustee Picciola to continue Jennifer M. White’s disability benefits based on a finding that she remains disabled and subject to further annual examinations until age 50. Motion carried unanimously by voice vote. NEW BUSINESS: Military Service Purchase – David R. Kaczmarczyk: The Board noted that L&A sent correspondence to David R. Kaczmarczyk regarding his request to calculate the amount of money due the Oak Brook Firefighters’ Pension Fund to purchase 24-months of military service time, but no response has been received to date. No further action is required by the Board at this time. Creditable Service Purchase – Sarie T. Lorence: The Board noted that the balance due from Sarie T. Lorence to the Oak Brook Firefighters’ Pension Fund to combine service under reciprocity has been received in full. No further action is required by the Board at this time. Establish 2020 Board Meeting Dates: The Board established the 2020 Board meeting dates as January 29, 2020; April 28, 2020; July 24, 2020; and October 22, 2020 at 8:00 a.m. at the Butler Government Center, West Wing Conference Room, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523. ATTORNEY’S REPORT – REIMER & DOBROVOLNY, PC: Legal Updates: The Board reviewed the Legal and Legislative Update quarterly newsletter. CLOSED SESSION, IF NEEDED: There was no need for closed session. ADJOURNMENT: A motion was made by Trustee Fagan and seconded by Trustee Bodony to adjourn the meeting at 9:40 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for January 29, 2020 at 8:00 a.m. Board President or Secretary Approved by the Board of Trustees on _______________________ Minutes prepared by Jennifer Flores, Pension Services Administrator, Lauterbach & Amen, LLP 4 of 71 Quarterly Investment Performance Report December 31, 2019 Oak Brook Firefighters' Pension Fund Presented by: Thomas S. Sawyer, Managing Partner John J. Falduto, Managing Partner Edward J. Lavin, Chief Investment Officer David M. Harrington, Director of Portfolio Management Sawyer Falduto Asset Management, LLC 589 S. York Street Elmhurst, IL 60126 O: (630) 941-8560 F: (630) 941-8558 www.sawyerfalduto.com SFAM Page 1 of 24 5 of 71 Oak Brook Firefighters' Pension Fund December 31, 2019 INVESTMENT POLICY GUIDELINES – ADOPTED 7/24/2019 Performance Measurements Benchmark Index Cash Equivalents / Short Term 90-day US Treasury Bills Fixed Income Barclays US Government Bond Index Large Cap Domestic Equities S&P 500 Index Small Cap Domestic Equities Russell 2000 Stock Index International Equities MSCI Europe/Australia/Far East Index Portfolio Allocation Target Range Maximum Cash / Short Term 0% 0 - 10% 100% Fixed Income 40% 35 - 45% 100% Equity 60% 55 - 65% See Below Fixed Income Allocation Minimum Range Maximum U.S. Treasury Bills/Notes/Bonds 0% 5 – 40% 100% US Government Agency (non-MBS) 0% 20 – 70% 75% US Government Agency (Callable) 0% 0 – 20% 30% US Government Agency (MBS) 0% 0 – 10% 15% Taxable Municipal Securities 0% 5 – 20% 30% Certificates of Deposit 0% 0 – 10% 20% Investment Grade Corporate Bonds 0% 5 – 20% 30% Equity Diversification Target Range US Large Cap Stocks 70% 40 - 100% US Small Cap Stocks 20% 0 - 40% Foreign Securities 10% 0 - 20% Portfolio Allocation – Equity Maximum Illinois Statute provides limits for investment in mutual funds / equities as a percentage of pension fund assets. Please note that the comments provided below summarize the statute and are general in nature. Please refer to the Illinois Compiled Statutes, the Pension Fund’s Investment Policy and the Pension Board’s legal counsel for information regarding investments allowed under the law. Funds with total assets under $2.5 million may invest up to 10% of total assets in mutual funds / equities. Funds with total assets over $2.5 million and up to $10 million may invest up to 45% of total assets in mutual funds / equities. Funds with total assets over $10 million may invest more than 45% of total assets in mutual funds / equities (either 55% or 65% depending on interpretation). Initial interpretation of the statute was that funds with total assets of over $10 million were allowed to invest up to 55% o f total assets in mutual funds / equities on and after July 1, 2012. On August 1, 2012, the Illinois Department of Insurance issued an advisory opinion indicating that the total allowable investment in equities (mutual funds) is 65%. SFAM Page 2 of 24 6 of 71 Oak Brook Firefighters' Pension Fund December 31, 2019 CASH FLOW AND PERFORMANCE REVIEW Long-Term Performance Periods Ending 12/31/2019 1 Year 3 Years 5 Years 10 Years Since Inception 6/30/2016 Total Account Return 19.51% 9.32% % % 9.25% Account Benchmark 20.16% 9.51% % % 9.38% Equity Return 28.17% 12.77% % % 13.68% Blended Benchmark 29.43% 13.46% % % 14.44% Fixed Income Return 7.40% 3.79% % % 2.32% Barclay’s US Gov’t Bond 6.83% 3.31% % % 1.64% Annualized returns for periods exceeding one year. All account performance and benchmark calculations include any change to asset allocation guidelines. Past performance is no guarantee of future returns. Unless otherwise noted, all investment results and performance are presented gross of investment advisor fees. Cash Flow Quarter 4 2019 Year-to-Date Beginning Market Value $29,347,556 $25,800,666 Contributions / Additions 835,191 1,218,181 Distributions / Expenses -745,191 -1,152,309 Adjusted Beginning Market Value 29,437,556 25,866,538 Ending Market Value $30,897,661 $30,897,661 Investment Return $1,460,105 $5,031,123 Performance Review Quarter 1 2019 Quarter 2 2019 Quarter 3 2019 Quarter 4 2019 Year-to-Date Total Account Return (Gross) 9.14% 3.17% 1.10% 4.98% 19.51% Total Account Return (Net) 9.09% 3.12% 1.05% 4.92% 19.27% Account Benchmark 8.86% 3.61% 1.33% 5.14% 20.16% Equity Return 13.82% 3.34% 0.40% 8.54% 28.17% Blended Benchmark 13.50% 3.84% 0.60% 9.16% 29.43% 70% S&P 500 13.65% 4.30% 1.70% 9.07% 31.49% 20% Russell 2000 14.58% 2.10% -2.40% 9.94% 25.52% 10% MSCI EAFE 10.13% 3.97% -1.07% 8.17% 22.52% Fixed Income Return 2.53% 2.92% 2.14% -0.35% 7.40% Barclay’s US Gov’t Bond 2.10% 2.99% 2.39% -0.77% 6.83% Cash Equivalent 0.48% 0.43% 0.43% 0.31% 1.66% 3 Month Treasury Bill 0.60% 0.64% 0.56% 0.46% 2.28% SFAM Page 3 of 24 7 of 71 Portfolio Value vs. Cumulative Net Investment From 04/03/2016 to 12/31/2019 Oak Brook Firefighters' Pension Fund Portfolio Value Cumulative Net Investment Dollar Value Quarter Ending 10000000 20000000 30000000 40000000 04/03/2016 06/30/2016 09/30/2016 12/31/2016 03/31/2017 06/30/2017 09/30/2017 12/31/2017 03/31/2018 06/30/2018 09/30/2018 12/31/2018 03/31/2019 06/30/2019 09/30/2019 12/31/2019Period Contributions Cumulative Portfolio Investment Ending and Withdrawals Net Investment Value Gain 04/03/2016 12,489,768 12,489,768 12,489,768 0 06/30/2016 10,752,286 23,242,053 23,916,090 674,036 09/30/2016 -226,284 23,015,769 24,399,678 1,383,909 12/31/2016 -238,915 22,776,854 24,461,407 1,684,552 03/31/2017 189 22,777,043 25,427,107 2,650,064 06/30/2017 -160,792 22,616,251 25,967,000 3,350,749 09/30/2017 -276,370 22,339,881 26,546,594 4,206,712 12/31/2017 -195,932 22,143,949 27,289,348 5,145,398 03/31/2018 0 22,143,949 27,154,390 5,010,440 06/30/2018 118,172 22,262,121 27,794,660 5,532,538 09/30/2018 -347,795 21,914,327 28,176,007 6,261,680 12/31/2018 0 21,914,327 25,800,398 3,886,071 03/31/2019 0 21,914,327 28,145,594 6,231,268 06/30/2019 0 21,914,327 29,024,340 7,110,013 09/30/2019 17,357 21,931,684 29,347,556 7,415,872 12/31/2019 104,675 22,036,358 30,897,661 8,861,303 SFAM Page 4 of 24 8 of 71 Quarterly Market Commentary – December 31, 2019 December 31, 2019 Equity Overview 4Q & 2019 Key Observations • Major U.S. stock indices finished the year on a positive note hitting record levels. • U.S. economic data and monetary policy continues to provide equity market support. • Full year 2019 earnings growth will likely surprise to the upside when announced in 1Q 2020. U.S. Equity Market Performance • U.S. equity indices continued the bull run during 2019 fueled by strong consumer spending, low unemployment levels and accommodative monetary policy from the Federal Reserve. • International equities posted solid 4Q returns, but continue to trail U.S. equity market performance. U.S. Equity Market Volatility • Equity market volatility is generally running below historical averages during 2019 with periodic spikes in volatility driven by global trade developments and geopolitical risk. Valuations & Earnings • Preliminary estimates suggest that companies in the S&P 500 Index may post somewhat better 2019 earnings results than previously anticipated. Current estimates point to earnings growth of 4.4% for the full year. On a forward-looking basis, stocks in the index are trading 18x estimated 2020 earnings, above the longer-term trend of 15x. Market Index 4Q 2019 2019 YTD S&P 500 (U.S. Large Cap) 9.07% 31.49% Russell 2000 (U.S. Small Cap) 9.93% 25.49% MSCI EAFE (Intl Developed Markets) 8.17% 22.01% SFAM Page 5 of 24 9 of 71 Quarterly Market Commentary – December 31, 2019 December 31, 2019 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 1 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 30 Yr U.S. Treasury Yield Curve 12/31/2018 9/30/2019 12/31/2019 Fixed Income Overview 4Q & 2019 Key Observations • U.S. yield curve regained a positive slope as interest rates on intermediate and longer-term maturities moved higher into year-end as fears of a recession in the U.S. eased. • The current absolute level of U.S. interest rates remains well below the 12/31/18 yields driven by three cuts in the Fed Funds rate and continued global monetary policy decisions holding yields near or below zero. U.S. Yield Curve • As of 12/31/19, the yield curve regained a positive slope with 2-year rates at 1.57% and 10-year rates at 1.92%. U.S. Fixed Income Yields • Yields for corporate bonds and taxable municipal bonds have decreased during the year following the trend in U.S. government bond yields. • The excess yield provided by corporate bonds over U.S. government bonds has decreased in 2019 as demand from global institutional investors continues to outweigh supply. Fixed Income Security Type Q1 2019 Q2 2019 Q3 2019 Q4 2019 U.S. Government 2-Year Bond 2.26% 1.76% 1.62% 1.57% U.S. Government 10-Year Bond 2.41% 2.01% 1.67% 1.92% Corporate 10-Year Bond (“A”) 3.39% 2.93% 2.64% 2.67% Taxable 10-Year Municipal Bond (“AA”) 3.10% 2.63% 2.47% 2.68% SFAM Page 6 of 24 10 of 71 Quarterly Market Commentary – December 31, 2019 December 31, 2019 Looking Back A Decade – The Bull Run & Low Interest Rates 2010’s Key Observations • U.S. equity markets generated robust returns during the decade spurred by economic growth. • Domestic interest rates touched historic low levels and even turned negative in some countries. A Decade of Strong Equity Returns • The S&P 500 produced an annualized total return of 13.6% over the last ten years with a high of 32.4% in 2013 and a low of -4.4% in 2018. • International equities significantly underperformed U.S. domestic equities while also exhibiting higher levels of volatility. • Asset allocation continues to be a primary driver in portfolio returns - fixed income vs. equities, U.S. domestic equities vs. international equities, U.S. large cap equities vs. U.S. small cap equities. Equity Index Performance – Looking Back A Decade Index 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Annualized S&P 500 15.1% 2.1% 16.0% 32.4% 13.7% 1.4% 12.0% 21.8% -4.4% 31.5% 13.6% Russell 2000 26.8% -4.2% 16.4% 38.8% 4.9% -4.4% 21.3% 14.6% -11.0% 25.5% 11.8% MSCI EAFE 7.8% -12.1% 17.3% 22.8% -4.9% -0.8% 1.0% 25.0% -13.8% 22.0% 5.5% Equity Allocation – Primary Return Driver S&P 500 % Russell 2000% MSCI EAFE% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Annualized 70%/20%/10% 16.7% -0.6% 16.2% 32.7% 10.1% 0.0% 12.7% 20.7% -6.7% 29.3% 12.4% 65%/20%/15% 16.3% -1.3% 16.3% 32.2% 9.1% -0.1% 12.2% 20.9% -7.1% 28.9% 12.0% 60%/20%/20% 15.9% -2.0% 16.3% 31.7% 8.2% -0.2% 11.6% 21.0% -7.6% 28.4% 11.6% SFAM Page 7 of 24 11 of 71 Quarterly Market Commentary – December 31, 2019 December 31, 2019 Looking Back A Decade – The Bull Run & Low Interest Rates (Continued) S&P 500 Performance • The S&P 500 index returned an annualized return of 13.6% during the decade led by the technology sector which posted a 17.5% annualized return. • The energy sector lagged the overall performance with an annualized performance of just 3.3%. • Diversification across the S&P 500 sectors continues to be a prudent risk management tool. U.S. Interest Rate Trends • Average U.S. government yields over the last decade are below longer-term historical norms as foreign demand and low domestic inflation levels serve to limit upside rate movements. • Long term bond yields have decreased significantly during the decade with 10-year yields dropping 50% during the period. • Global monetary policy has ushered in an era of low interest rates in hopes of stimulating economic activity. U.S. Government Interest Rates – Looking Back A Decade 12/31/09 12/31/19 High / Low 10 Year Average U.S. Government 2-Year Bond Yield 1.14% 1.57% 2.97% / 0.16% 0.95% U.S. Government 10-Year Bond Yield 3.84% 1.92% 3.99% / 1.36% 2.40% U.S. Government 30-Year Bond Yield 4.64% 2.39% 4.84% / 1.95% 3.19% The information contained in this commentary is the opinion of the author and obtained from sources believed to be reliable, but the accuracy cannot be guaranteed. Past performance is not predictive of future returns. SFAM Page 8 of 24 12 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Portfolio Allocation Equities: 61.4% Fixed Income: 37.2% Cash Equivalent: 1.5% Current Current Annual Weight Description Symbol Quantity Value Yield Income Equities Large Cap Mutual Fund 2. 8%AQR Large Cap Defensive QUERX 36,477. 083 867,060. 26 1. 2%10,031. 20 5. 0%LSV Value Equity Fund LSVEX 55,683. 421 1,529,623. 57 2. 1%32,786. 40 6. 8%Pioneer Equity Income PYEQX 56,351. 432 2,088,947. 58 1. 0%21,221. 96 13. 6%T Rowe Price Growth Stock PRUFX 57,388. 043 4,211,708. 48 0. 4%14,920. 88 14. 5%Vanguard 500 Index Fund VFIAX 15,056. 709 4,489,007. 22 1. 9%86,280. 96 42. 7%13,186,347. 11 1. 3%165,241. 40 Mid Cap Mutual Fund 1. 9%Victory Sycamore VEVIX 14,458. 772 579,362. 99 1. 8%10,696. 61 Small Cap Mutual Fund 4. 2%Goldman Sachs Small Cap GCSIX 46,927. 964 1,309,759. 48 0. 5%7,011. 04 4. 3%T Rowe Price QM US Small-Cap TQAIX 33,616. 412 1,338,605. 53 0. 0%0. 00 1. 9%TIAA Nuveen Small Cap Index TISBX 28,784. 431 599,291. 85 1. 4%8,289. 92 10. 5%3,247,656. 86 0. 5%15,300. 96 International Mutual Fund 0. 9%First Eagle Overseas SGOIX 11,549. 103 282,953. 02 2. 3%6,571. 43 1. 5%Goldman Sachs International GCIIX 35,901. 632 466,362. 20 2. 5%11,456. 21 1. 5%MFS International Growth I MQGIX 11,096. 34 459,943. 29 0. 9%4,132. 94 1. 0%Oppenheimer Developing Markets ODVIX 6,782. 18 309,199. 59 0. 7%2,149. 27 4. 9%1,518,458. 10 1. 6%24,309. 86 SFAM Page 9 of 24 13 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Equities Real Estate Mutual Fund 1. 4%Cohen & Steers Realty CSRIX 9,343. 351 438,109. 73 2. 7%11,623. 14 61. 4%18,969,934. 79 1. 2%227,171. 96 Fixed Income Taxable Bonds U. S. Treasury 0. 5%US Treas Note 9128285M8 150,000 164,906. 25 2. 8%4,687. 50 11/15/2028 3.125% Accrued Income 605. 25 0. 5%US Treas Note 912828M80 150,000 151,593. 75 2. 0%3,000. 00 11/30/2022 2.00% Accrued Income 262. 30 0. 3%US Treas Note 912828N30 100,000 101,468. 75 2. 1%2,125. 00 12/31/2022 2.125% Accrued Income 5. 84 0. 3%US Treas Note 912828T91 100,000 99,843. 75 1. 6%1,625. 00 10/31/2023 1.625% Accrued Income 276. 79 0. 3%US Treas Note 912828WC0 100,000 100,078. 12 1. 7%1,750. 00 10/31/2020 1.75% Accrued Income 298. 08 0. 5%US Treas Note 912828WE6 150,000 156,023. 43 2. 6%4,125. 00 11/15/2023 2.75% Accrued Income 532. 62 0. 3%US Treas Note 912828X88 100,000 103,640. 62 2. 3%2,375. 00 05/15/2027 2.375% Accrued Income 306. 66 0. 3%US Treas Note 912828YQ7 100,000 98,656. 25 1. 6%1,625. 00 10/31/2026 1.625% Accrued Income 276. 79 3. 2%978,775. 25 2. 2%21,312. 50 U.S. Government Agency 0. 2%Fed Farm Cr Bk 31331SZY2 50,000 50,628. 90 4. 5%2,275. 00 06/08/2020 4.55% Accrued Income 145. 35 0. 3%Fed Farm Cr Bk 3133EA6C7 100,000 103,251. 20 2. 4%2,500. 00 10/24/2025 2.50% Accrued Income 465. 28 0. 2%Fed Farm Cr Bk 3133EAE61 49,000 50,146. 75 2. 3%1,141. 70 08/01/2025 2.33% Accrued Income 475. 71 0. 7%Fed Farm Cr Bk 3133ECB60 200,000 207,309. 60 2. 5%5,140. 00 12/24/2026 2.57% Accrued Income 99. 94 0. 7%Fed Farm Cr Bk 3133ECJF2 200,000 200,382. 80 1. 8%3,540. 00 03/18/2021 1.77% Accrued Income 1,012. 83 0. 4%Fed Farm Cr Bk 3133ECN83 125,000 128,180. 63 2. 3%2,962. 50 05/01/2025 2.37% Accrued Income 493. 75 SFAM Page 10 of 24 14 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds U.S. Government Agency 0. 2%Fed Farm Cr Bk 3133ED6M9 68,000 71,692. 67 3. 0%2,155. 60 11/06/2023 3.17% Accrued Income 329. 33 1. 0%Fed Farm Cr Bk 3133EEF47 300,000 309,325. 20 2. 4%7,410. 00 09/30/2025 2.47% Accrued Income 1,873. 08 0. 3%Fed Farm Cr Bk 3133EEG79 100,000 101,726. 00 2. 1%2,150. 00 09/07/2023 2.15% Accrued Income 680. 83 0. 3%Fed Farm Cr Bk 3133EEHG8 100,000 105,345. 10 2. 7%2,875. 00 06/09/2026 2.875% Accrued Income 175. 69 0. 3%Fed Farm Cr Bk 3133EER85 100,000 100,696. 50 2. 0%2,000. 00 12/01/2021 2.00% Accrued Income 166. 67 1. 0%Fed Farm Cr Bk 3133EERX0 285,000 296,758. 25 2. 6%7,638. 00 03/02/2026 2.68% Accrued Income 2,524. 78 0. 5%Fed Farm Cr Bk 3133EESU5 150,000 157,352. 10 2. 7%4,185. 00 08/09/2027 2.79% Accrued Income 1,650. 75 0. 5%Fed Farm Cr Bk 3133EGN68 150,000 158,359. 50 2. 7%4,245. 00 11/28/2028 2.83% Accrued Income 389. 13 0. 5%Fed Farm Cr Bk 3133EHNR0 150,000 155,055. 30 2. 5%3,870. 00 06/15/2027 2.58% Accrued Income 172. 00 0. 7%Fed Farm Cr Bk 3133EHTW3 200,000 209,223. 40 2. 6%5,460. 00 08/04/2028 2.73% Accrued Income 2,229. 50 0. 5%Fed Farm Cr Bk 3133EHZD8 150,000 156,058. 80 2. 5%3,975. 00 09/19/2028 2.65% Accrued Income 1,126. 25 0. 2%Fed Farm Cr Bk 3133EJ2C2 50,000 53,584. 80 3. 0%1,610. 00 12/10/2025 3.22% Accrued Income 93. 92 0. 4%Fed Farm Cr Bk 3133EJFB0 100,000 107,852. 00 2. 9%3,170. 00 03/07/2028 3.17% Accrued Income 1,003. 83 0. 2%Fed Farm Cr Bk 3133EJJH3 50,000 53,882. 35 2. 9%1,575. 00 04/03/2028 3.15% Accrued Income 385. 00 0. 4%Fed Farm Cr Bk 3133EJNZ8 100,000 109,813. 80 3. 1%3,350. 00 12/14/2028 3.35% Accrued Income 158. 19 0. 7%Fed Farm Cr Bk 3133EJPN3 200,000 217,871. 20 3. 0%6,600. 00 05/17/2028 3.30% Accrued Income 806. 67 0. 3%Fed Farm Cr Bk 3133EJXS3 100,000 106,836. 10 2. 9%3,100. 00 08/24/2026 3.10% Accrued Income 1,093. 61 0. 3%Fed Farm Cr Bk 3133EK5F9 100,000 98,507. 80 2. 0%2,000. 00 11/01/2029 2.00% Accrued Income 333. 33 SFAM Page 11 of 24 15 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds U.S. Government Agency 0. 9%Fed Farm Cr Bk 3133EKDF0 250,000 267,880. 00 2. 8%7,500. 00 03/14/2029 3.00% Accrued Income 2,229. 17 0. 9%Fed Farm Cr Bk 3133EKJE7 250,000 267,546. 75 2. 8%7,500. 00 11/25/2030 3.00% Accrued Income 750. 00 0. 7%Fed Farm Cr Bk 3133EKKG0 200,000 211,127. 00 2. 7%5,600. 00 05/03/2029 2.80% Accrued Income 902. 22 0. 3%Fed Farm Cr Bk 3133EKS64 100,000 99,044. 40 2. 1%2,040. 00 09/24/2029 2.04% Accrued Income 549. 67 1. 0%Fed Farm Cr Bk 3133EKTX4 300,000 305,924. 40 2. 3%7,110. 00 07/03/2029 2.37% Accrued Income 3,515. 50 0. 5%Fed Farm Cr Bk 3133ELBZ6 150,000 147,267. 75 2. 1%3,120. 00 12/02/2030 2.08% Accrued Income 251. 33 0. 1%Fed Farm Cr Bk 3133FXEP8 30,000 31,370. 40 2. 9% 900. 00 07/15/2023 3.00% Accrued Income 415. 00 0. 3%Fed Home Ln Bk 3130A2UW4 100,000 105,030. 50 2. 7%2,875. 00 09/13/2024 2.875% Accrued Income 862. 50 0. 5%Fed Home Ln Bk 3130A3DU5 150,000 159,524. 85 2. 8%4,500. 00 03/12/2027 3.00% Accrued Income 1,362. 50 0. 5%Fed Home Ln Bk 3130A3KM5 150,000 153,601. 65 2. 4%3,750. 00 12/09/2022 2.50% Accrued Income 229. 17 0. 3%Fed Home Ln Bk 3130A3UQ5 100,000 100,228. 50 1. 9%1,875. 00 12/11/2020 1.875% Accrued Income 104. 17 0. 5%Fed Home Ln Bk 3130A5DA4 150,000 155,790. 60 2. 5%3,937. 50 06/13/2025 2.625% Accrued Income 196. 88 0. 7%Fed Home Ln Bk 3130A67F8 200,000 207,586. 80 2. 5%5,250. 00 03/14/2025 2.625% Accrued Income 1,560. 42 0. 8%Fed Home Ln Bk 3130A7BA2 250,000 255,934. 25 2. 3%5,937. 50 03/13/2026 2.375% Accrued Income 1,781. 25 0. 9%Fed Home Ln Bk 3130AAZ92 250,000 263,794. 25 2. 7%7,187. 50 03/12/2027 2.875% Accrued Income 2,176. 22 0. 3%Fed Home Ln Bk 3130ACKB9 100,000 103,785. 80 2. 5%2,625. 00 09/10/2027 2.625% Accrued Income 809. 38 0. 2%Fed Home Ln Bk 3130AD7C0 50,000 52,367. 60 2. 6%1,375. 00 12/10/2027 2.75% Accrued Income 80. 21 0. 3%Fed Home Ln Bk 3130AGDY8 100,000 105,191. 60 2. 6%2,750. 00 06/08/2029 2.75% Accrued Income 175. 69 SFAM Page 12 of 24 16 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds U.S. Government Agency 0. 3%Fed Home Ln Bk 3130AGUW 100,000 99,786. 50 2. 1%2,125. 00 09/14/2029 2.125% Accrued Income 855. 90 0. 9%Fed Home Ln Bk 3133XVDG3 250,000 279,411. 75 3. 9%10,937. 50 09/13/2024 4.375% Accrued Income 3,281. 25 0. 7%Tenn Valley Auth 880591ER9 200,000 208,960. 80 2. 8%5,750. 00 09/15/2024 2.875% Accrued Income 1,693. 06 22. 4%6,932,663. 81 2. 6%179,572. 80 U.S. Government Agency - Callable 0. 3%Fed Farm Cr Bk 3133EHBV4 100,000 100,208. 10 3. 1%3,080. 00 03/09/2027 3.08% Call 03/09/2020, 100.00 Accrued Income 958. 22 0. 3%Fed Farm Cr Bk 3133EJPJ2 100,000 104,961. 00 3. 5%3,670. 00 05/16/2028 3.67% Call 05/16/2023, 100.00 Accrued Income 458. 75 0. 3%Fed Farm Cr Bk 3133EJR76 100,000 106,120. 50 3. 6%3,780. 00 11/07/2028 3.78% Call 11/07/2023, 100.00 Accrued Income 567. 00 0. 3%Fed Home Ln Bk 3130AAYF9 100,000 100,252. 30 3. 3%3,270. 00 03/16/2028 3.27% Call 03/16/2020, 100.00 Accrued Income 953. 75 1. 3%414,479. 62 3. 4%13,800. 00 Taxable Municipal 0. 3%Cook Cnty, IL 213687JZ0 100,000 100,258. 00 5. 1%5,100. 00 Evanston Sch. Dist 65 12/01/2026 5.10% Accrued Income 425. 00 0. 4%Cook Cnty, IL 215075KH4 100,000 109,093. 00 4. 1%4,500. 00 Dolton SD #148 BAM Insured 12/01/2024 4.50% Accrued Income 375. 00 0. 3%DuPage & Cook Cnty 262579SA4 100,000 105,716. 00 3. 1%3,300. 00 Hinsdale Sch Dist 181 01/15/2025 3.30% Accrued Income 1,521. 67 0. 2%Hoffman Estates, IL 434452KW7 50,000 54,092. 50 4. 2%2,250. 00 12/01/2030 4.50% Call 12/01/2024, 100.00 Accrued Income 187. 50 0. 3%Lake Cnty, IL 508759KK2 100,000 105,386. 00 3. 3%3,429. 00 Hawthorn Woods SD #73 01/01/2027 3.429% Accrued Income 1,714. 50 SFAM Page 13 of 24 17 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds Taxable Municipal 0. 5%Lake Zurich, IL 511444RJ2 150,000 152,202. 00 2. 8%4,275. 00 02/01/2027 2.85% Call 02/01/2026, 100.00 Accrued Income 1,781. 25 0. 3%Oakbrook Ter, IL 67184PGX3 100,000 100,896. 00 3. 0%3,000. 00 12/15/2025 3.00% Call 12/15/2022, 100.00 Accrued Income 133. 33 0. 5%Skokie, IL 830728SM4 150,000 151,603. 50 2. 3%3,525. 00 12/01/2024 2.35% Accrued Income 293. 75 0. 5%Wheeling, IL Pk Dist 963116LL0 150,000 153,073. 50 4. 7%7,125. 00 11/01/2020 4.75% Accrued Income 1,187. 50 0. 5%Will Cnty IL CSD 968648ZL2 150,000 153,448. 50 2. 9%4,500. 00 Plainfield Cmty CSD #202 01/01/2022 3.00% Accrued Income 2,250. 00 3. 9%1,195,638. 50 3. 5%41,004. 00 Corporate 0. 4%3M Company 88579YAY7 115,000 119,753. 18 2. 8%3,306. 25 10/15/2027 2.875% Call 07/15/2027, 100.00 Accrued Income 697. 99 0. 3%Anheuser-Busch 035242AL0 90,000 93,109. 23 3. 2%2,970. 00 02/01/2023 3.30% Call 12/01/2022, 100.00 Accrued Income 1,237. 50 0. 3%Apple Inc 037833AS9 100,000 106,261. 20 3. 2%3,450. 00 05/06/2024 3.45% Accrued Income 527. 08 0. 3%Apple Inc 037833BY5 100,000 105,764. 50 3. 1%3,250. 00 02/23/2026 3.25% Call 11/23/2025, 100.00 Accrued Income 1,155. 56 0. 5%Berkshire Hathaway 084670BR8 150,000 154,017. 90 2. 7%4,125. 00 03/15/2023 2.75% Call 01/15/2023, 100.00 Accrued Income 1,214. 58 0. 3%Berkshire Hathaway 084670BS6 100,000 105,492. 60 3. 0%3,125. 00 03/15/2026 3.125% Call 12/15/2025, 100.00 Accrued Income 920. 14 0. 2%Boeing Co 097023AZ8 50,000 50,148. 40 4. 9%2,437. 50 02/15/2020 4.875% Accrued Income 920. 83 0. 3%Coca Cola Co 191216CM0 100,000 97,217. 10 2. 2%2,125. 00 09/06/2029 2.125% Accrued Income 678. 82 0. 3%Exxon Mobil 30231GAT9 100,000 104,906. 10 2. 9%3,043. 00 03/01/2026 3.043% Call 12/01/2025, 100.00 Accrued Income 1,014. 33 SFAM Page 14 of 24 18 of 71 Portfolio Statement As of 12/31/2019 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds Corporate 0. 5%Gilead Sciences 375558AU7 150,000 156,387. 30 4. 2%6,600. 00 12/01/2021 4.40% Call 09/01/2021, 100.00 Accrued Income 550. 00 0. 5%IBM Corp 459200HU8 150,000 158,731. 05 3. 4%5,437. 50 02/12/2024 3.625% Accrued Income 2,099. 48 0. 3%Microsoft Corp 594918BY9 100,000 106,744. 00 3. 1%3,300. 00 02/06/2027 3.30% Call 11/06/2026, 100.00 Accrued Income 1,329. 17 0. 3%NBC Universal Media 63946BAE0 100,000 103,106. 60 4. 2%4,375. 00 04/01/2021 4.375% Accrued Income 1,093. 75 0. 3%The Home Depot,437076BY7 100,000 103,850. 30 2. 8%2,950. 00 06/15/2029 2.95% Call 03/15/2029, 100.00 Accrued Income 131. 11 0. 6%Univ of Chicago 91412NAB6 180,000 194,352. 84 4. 4%8,568. 00 10/01/2023 4.76% Accrued Income 2,142. 00 0. 4%US Bancorp 91159HHA1 125,000 128,585. 50 4. 0%5,156. 25 05/24/2021 4.125% Call 04/23/2021, 100.00 Accrued Income 529. 95 0. 2%Wal-Mart Stores 931142EK5 50,000 52,502. 55 3. 2%1,700. 00 06/26/2023 3.40% Call 05/26/2023, 100.00 Accrued Income 23. 61 6. 3%1,957,196. 25 3. 4%65,918. 50 37. 2%11,478,753. 43 2. 8%321,607. 80 Cash Equivalent Cash Equivalent Cash Equivalent 1. 5%Schwab Government Money Fund SWGXX 448,973. 03 1. 8%8,126. 41 99. 8%30,824,356. 89 1. 8%556,906. 17 Total Accrued Income 73,304. 36 100. 0%30,897,661. 25 Information in this report is based on data provided by the custodian. SFAM Page 15 of 24 19 of 71 Oak Brook Firefighters' Pension Fund December 31, 2019 EQUITY PORTFOLIO This section of the quarterly presentation contains independent, third party information provided by Morningstar regarding the equity portfolio of mutual funds and the individual underlying mutual funds. SFAM Page 16 of 24 20 of 71 Portfolio Snapshot Portfolio Value Benchmark $18,969,934.79 Custom Oak Brook Firefighters' Pension Fund: 20433707 Analysis 12-31-2019 Asset Allocation Portfolio Net % Bmark Net % Cash 0.95 0.00 US Stocks 87.14 89.26 Non-US Stocks 11.48 10.73 Bonds 0.03 0.00 Other/Not Clsfd 0.41 0.01 Morningstar Equity Style Box %Morningstar Fixed Income Style Box % Value Blend Growth Large Mid Small 18 19 27 8 7 7 4 5 5 Total Stock Holdings 3,500 % Not Classified 0 0-10 10-25 25-50 >50 Ltd Mod Ext High Med Low 0 0 0 0 0 0 0 0 0 Total Bond Holdings 103 % Not Classified 100 0-10 10-25 25-50 >50 Stock Analysis 12-31-2019 Stock Sectors CyclicalDefensiveSen s i t i ve Benchmark Portfolio Portfolio (%) Bmark (%) h Cyclical 38.22 33.46 r Basic Matls 3.70 3.01 t Consumer Cycl 13.38 9.73 y Financial Svs 15.87 16.44 u Real Estate 5.27 4.28 j Sensitive 38.69 41.18 i Commun Svs 3.98 8.45 o Energy 3.74 4.05 p Industrials 12.57 11.74 a Technology 18.40 16.94 k Defensive 23.09 25.36 s Consumer Def 7.17 7.18 d Healthcare 13.01 14.78 f Utilities 2.91 3.40 Not Classified 0.00 0.00 World Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio (%) Bmark (%) Americas 89.49 89.37 North America 89.04 89.31 Latin America 0.45 0.06 Greater Europe 6.06 6.86 United Kingdom 1.47 1.97 Europe-Developed 4.32 4.80 Europe-Emerging 0.19 0.03 Africa/Middle East 0.08 0.06 Greater Asia 4.45 3.77 Japan 1.17 2.48 Australasia 0.23 0.71 Asia-Developed 0.79 0.52 Asia-Emerging 2.26 0.06 Not Classified 0.00 0.00 Performance 12-31-2019 Investment Activity Graph Portfolio Initial Mkt Val: $5,260,350 Final Mkt Val: $18,969,935 Benchmark 01-10 01-11 01-12 01-13 01-14 01-15 01-16 01-17 01-18 01-19 2.0 6.0 10.0 14.0 18.0 $22.0 mil Trailing Returns*3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 8.63 28.96 14.06 11.23 13.22 Benchmark Return 9.16 29.43 13.46 10.52 12.52 +/- Benchmark Return -0.53 -0.47 0.60 0.71 0.70 *Full return history is not available for all securities. Please see Return Participation disclosure. Best/Worst Time Periods Best %Worst % 3 Months 15.99 ( Sep 2010-Nov 2010 ) -16.36 ( Jul 2011-Sep 2011 ) 1 Year 34.20 ( Jul 2010-Jun 2011 ) -7.46 ( Mar 2015-Feb 2016 ) 3 Years 21.83 ( Oct 2011-Sep 2014 ) 7.88 ( Nov 2013-Oct 2016 ) Portfolio Yield ( 12-31-2019 )Yield % 12-Month Yield — Portfolio-Level Performance Disclosure The portfolio-level performance shown is hypothetical and for illustrative purposes only. Investor returns will differ from the results shown. The performance data reflects monthly portfolio rebalancing. Holdings 12-31-2019 Top 10 holdings out of 14 Symbol Type Holding Value $ % Assets Vanguard 500 Index Admiral (USD)VFIAX MF 4,489,007 23.66 T. Rowe Price Growth Stock I (USD)PRUFX MF 4,211,709 22.20 Pioneer Equity Income Y (USD)PYEQX MF 2,088,948 11.01 LSV Value Equity (USD)LSVEX MF 1,529,624 8.06 T. Rowe Price QM US Small-Cap Gr Eq I (USD)TQAIX MF 1,338,606 7.06 Goldman Sachs Small Cap Eq Insghts Instl (USD)GCSIX MF 1,309,760 6.90 AQR Large Cap Defensive Style R6 (USD)QUERX MF 867,060 4.57 TIAA-CREF Small-Cap Blend Idx Inst (USD)TISBX MF 599,292 3.16 Victory Sycamore Established Value I (USD)VEVIX MF 579,363 3.05 Goldman Sachs Intl Eq Insghts Instl (USD)GCIIX MF 466,362 2.46 Release date 12-31-2019 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. ©2020 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 206 of 261 SFAM Page 17 of 24 21 of 71 Portfolio Snapshot Portfolio Value Benchmark $18,969,934.79 Custom Oak Brook Firefighters' Pension Fund: 20433707 Risk Analysis 12-31-2019 Risk/Reward Scatterplot Portfolio Holdings Bmark 10 Year Mean -3.40 0.00 3.40 6.80 10.20 13.60 17.00 20.40 23.80 27.20 30.60 -2.0 -0.5 1.0 2.5 4.0 5.5 7.0 8.5 10.0 11.5 13.0 14.5 16.0 17.5 19.0 10 Year Standard Deviation Performance History Graph Portfolio Quarterly returns +/- Benchmark in % 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2.0 Bmark 2.0 4.0 6.0 8.0 10.0% Risk and Return Statistics*3 Yr 5 Yr 10 Yr Portfolio Bmark Portfolio Bmark Portfolio Bmark Standard Deviation 12.29 12.31 12.07 12.28 13.15 13.10 Mean 14.06 13.46 11.23 10.52 13.22 12.52 Sharpe Ratio 1.05 1.00 0.90 0.83 1.03 0.98 MPT Statistics*3 Yr Portfolio 5 Yr Portfolio 10 Yr Portfolio Alpha 0.59 0.84 0.64 Beta 0.99 0.98 1.00 R-Squared 99.19 98.86 98.96 Portfolio-Level Performance Disclosure The portfolio-level performance shown is hypothetical and for illustrative purposes only. Investor returns will differ from the results shown. The performance data reflects monthly portfolio rebalancing. Fundamental Analysis 12-31-2019 Asset Allocation -100 -50 0 50 100 Portfolio Net % Portfolio Long % Portfolio Short % Cash 0.95 1.16 0.21 US Stocks 87.14 87.14 0.00 Non-US Stocks 11.48 11.48 0.00 Bonds 0.03 0.03 0.00 Other/Not Clsfd 0.41 0.41 0.00 Total 100.00 100.21 0.21 Market Maturity % of Stocks Portfolio Bmark Developed Markets 97.10 99.90 Emerging Markets 2.90 0.10 Not Available 0.00 0.00 Valuation Multiples Portfolio Bmark Price/Earnings 20.28 20.45 Price/Book 2.84 2.67 Price/Sales 1.68 1.77 Price/Cash Flow 12.54 12.35 Profitability Portfolio Bmark % of Stocks 2019-12 2019-12 Net Margin 15.47 14.93 ROE 21.43 20.88 ROA 7.59 6.74 Debt/Capital 41.48 42.18 Fund Statistics Potential Cap Gains Exposure 33.32 Avg Net Expense Ratio 0.48 Avg Gross Expense Ratio 0.49 Geometric Avg Capitalization ($Mil) Portfolio 38,280.87 Benchmark 46,540.07 Credit Quality Breakdown % of Bonds AAA — AA — A — BBB — BB — B — Below B — NR — Interest Rate Risk Bonds % Not Available Avg Eff Maturity — 100.00 Avg Eff Duration — 100.00 Avg Wtd Coupon — 0.00 Type Weightings % of Stocks Portfolio Bmark n High Yield 7.23 0.01 b Distressed 0.86 0.18 v Hard Asset 6.63 0.06 m Cyclical 26.30 0.14 x Slow Growth 5.44 0.02 z Classic Growth 7.26 0.00 l Aggressive Growth 9.97 0.00 c Speculative Growth 3.18 0.07 Not Available 33.13 99.53 0% 10 20 30 40 50 60 70 80 90 100 *Full return history is not available for all securities. Please see Return Participation disclosure. Release date 12-31-2019 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. ©2020 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. Opinions expressed are as of the date written and are subject to change without notice. Investment research is produced and issued by subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC, registered with and governed by the U.S. Securities and Exchange Commission. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Please see important disclosures at the end of this report. ß® Page 207 of 261 SFAM Page 18 of 24 22 of 71 Mutual Fund Performance and Characteristics December 31, 2019 MUTUAL FUND PERFORMANCE AND FUND CHARACTERISTICS Large Cap (US) Ticker Investment Annualized Returns Symbol Objective Q4 1 yr 3 yrs 5 yrs 10 yrs T Rowe Price Growth Stock PRUFX Large Growth 10.08% 30.98% 20.22% 14.38% 15.11% Vanguard 500 Index Admiral VFIAX Large Blend 9.06% 31.46% 15.23% 11.66% 13.52% AQR Large Cap Defensive QUERX Large Blend 5.43% 28.81% 16.26% 13.50% N/A% LSV Value Equity LSVEX Large Value 9.49% 25.18% 8.16% 7.71% 11.99% Pioneer Equity Income Fund PYEQX Large Value 7.26% 25.74% 9.79% 9.71% 12.60% S&P 500 Index – Growth 8.32% 31.13% 18.66% 13.52% 14.78% S&P 500 Index 9.07% 31.49% 15.27% 11.70% 13.56% S&P 500 Index – Value 9.93% 31.93% 11.49% 9.52% 12.16% Small & Mid Cap (US) Ticker Investment Annualized Returns Symbol Objective Q4 1 yr 3 yrs 5 yrs 10 yrs TIAA Nuveen Small Cap Index TISBX Small Blend 9.97% 25.53% 8.73% 8.42% 11.99% Goldman Sachs Small Cap Equity GCSIX Small Blend 9.59% 26.10% 8.74% 9.21% 12.62% Victory Sycamore Established Value VEVIX Mid-Cap Value 5.87% 28.77% 10.39% 10.45% 13.10% T Rowe Price Div Small Cap Grwth TQAIX Small Growth 8.66% 32.93% 14.88% 11.58% 15.32% Russell 2000 Index – Growth 11.39% 28.48% 12.49% 9.34% 13.01% Russell 2000 Index 9.94% 25.52% 8.59% 8.23% 11.83% Russell 2000 Index - Value 8.49% 22.39% 4.77% 6.99% 10.56% International Ticker Investment Annualized Returns Symbol Objective Q4 1 yr 3 yrs 5 yrs 10 yrs MFS International Growth MQGIX Large Growth 8.98% 27.19% 15.37% 9.59% 7.73% First Eagle Overseas SGOIX Large Blend 3.91% 17.91% 6.67% 5.68% 6.58% Goldman Sachs Intl Equity GCIIX Large Blend 7.60% 18.52% 8.97% 7.42% 5.67% Oppenheimer Developing Markets ODVIX Emerging Mkts 11.88% 24.53% 14.13% 6.62% 6.12% MSCI EAFE Index 8.17% 22.01% 9.56% 5.67% 5.50% MSCI Emerging Markets Index 11.84% 18.42% 11.57% 5.61% 3.68% Real Estate Ticker Investment Annualized Returns Symbol Objective Q4 1 yr 3 yrs 5 yrs 10 yrs Cohen & Steers Realty CSRIX Real Estate 0.37% 33.01% 11.12% 8.87% 12.47% DJ US Select REIT Index -1.23% 23.10% 6.95% 6.40% 11.57% *YTD Return and Annualized Returns are calculated as of December 31, 2019 The performance data noted above is the performance of the referenced mutual fund for the period and does not represent the performance of Sawyer Falduto Asset Management, LLC or its clients. Past performance does not guarantee future results. SFAM Page 19 of 24 23 of 71 Oak Brook Firefighters' Pension Fund December 31, 2019 FIXED INCOME PORTFOLIO Fixed Income Allocation Minimum Range Maximum Current U.S. Treasury Bills/Notes/Bonds 0% 5 – 40% 100% 8.5% US Government Agency (non-MBS) 0% 20 – 70% 75% 60.4% US Government Agency (Callable) 0% 0 – 20% 30% 3.6% US Government Agency (MBS) 0% 0 – 10% 15% 0.0% Taxable Municipal Securities 0% 5 – 20% 30% 10.4% Certificates of Deposit 0% 0 – 10% 20% 0.0% Investment Grade Corporate Bonds 0% 5 – 20% 30% 17.1% Portfolio Statistics Duration Yield-to-Maturity Current Yield Average Coupon Fixed Income Portfolio 5.30 yrs 2.06% 2.82% 2.94% Benchmark 6.41 yrs 1.80% 2.26% 2.36% Maturity Distribution % of Fixed Income Securities 0 – 1 years 5.7% 1 – 3 years 12.6% 3 – 5 years 19.7% 5 – 7 years 25.1% 7 – 10 years 33.2% 10 – 15 years 3.6% 15 + years 0.0% Quality Distribution* Tsy/FDIC Aaa Aa A/Baa/NR Fixed Income Portfolio 8.5% 66.0% 10.4% 15.2% *Quality Distribution reflects ratings as provided by Moody’s. Standard & Poor’s lowered the rating on U.S. Treasuries and certain government agencies to AA+ on August 5, 2011. SFAM Page 20 of 24 24 of 71 Transaction Ledger Report From 10/01/2019 to 12/31/2019 Oak Brook Firefighters' Pension Fund Trade Principal Accrued Date Activity Description Quantity Amount Pd/Rec 10/01/2019 Interest NBC Universal Media 2,187. 50 04/01/2021 4.375% 10/01/2019 Interest Univ of Chicago 4,284. 00 10/01/2023 4.76% 10/03/2019 Deposit Schwab Government Money Fund 176,334. 11 10/03/2019 Interest Fed Farm Cr Bk 787. 50 04/03/2028 3.15% 10/07/2019 Buy Fed Farm Cr Bk 100,000 102,179. 00 79. 33 09/24/2029 2.04% 10/08/2019 Management Fee Schwab Government Money Fund 14,674. 00 10/10/2019 Credit Security AQR Large Cap Defensive 36,049. 927 10/10/2019 Debit Security AQR Large Cap Defensive (36,001. 818) 10/11/2019 Credit Security AQR Large Cap Defensive 82. 232 1,534. 03 10/11/2019 Credit Security AQR Large Cap Defensive 224. 199 4,182. 46 10/11/2019 Credit Security AQR Large Cap Defensive 2,092. 657 40,000. 00 10/11/2019 Credit Security AQR Large Cap Defensive 15,972. 318 365,916. 00 10/11/2019 Credit Security AQR Large Cap Defensive 17,678. 521 339,327. 74 10/11/2019 Debit Security AQR Large Cap Defensive (36,049. 927) 10/15/2019 Interest 3M Company 1,653. 13 10/15/2027 2.875% Call 07/15/2027 100.00 10/15/2019 Dividend Schwab Government Money Fund 183. 94 10/22/2019 Sell Cohen & Steers Realty (1,310. 22)65,000. 00 10/22/2019 Sell LSV Value Equity Fund (2,240. 478)60,000. 00 10/22/2019 Sell Oppenheimer Developing Markets (928. 721)40,000. 00 10/22/2019 Sell Pioneer Equity Income (700. 084)25,000. 00 10/22/2019 Sell T Rowe Price QM US Small-Cap Growt (1,566. 58)60,000. 00 10/23/2019 Withdrawal Schwab Government Money Fund 100,000. 00 10/23/2019 Withdrawal Schwab Government Money Fund 100,000. 00 10/23/2019 Withdrawal Schwab Government Money Fund 44,377. 52 10/24/2019 Interest Fed Farm Cr Bk 1,250. 00 10/24/2025 2.50% 10/25/2019 Buy Fed Farm Cr Bk 100,000 100,000. 00 0. 00 11/01/2029 2.00% 10/28/2019 Sell Goldman Sachs International (1,173. 709)15,000. 00 10/28/2019 Sell LSV Value Equity Fund (549. 249)15,000. 00 10/28/2019 Sell Victory Sycamore (248. 571)10,000. 00 10/31/2019 Interest US Treas Note 875. 00 10/31/2020 1.75% 11/01/2019 Interest Fed Farm Cr Bk 1,481. 25 05/01/2025 2.37% 11/01/2019 Interest Wheeling, IL Pk Dist 3,562. 50 11/01/2020 4.75% 11/03/2019 Interest Fed Farm Cr Bk 2,800. 00 05/03/2029 2.80% 11/04/2019 Interest Capital One Bank 2,394. 52 11/04/2019 1.90% 11/04/2019 Sell Capital One Bank (250,000)250,000. 00 0. 00 11/04/2019 1.90% 11/05/2019 Short Gain Cohen & Steers Realty 165. 388 7,662. 42 11/05/2019 Long Gain Cohen & Steers Realty 173. 686 8,046. 89 11/06/2019 Interest Apple Inc 1,725. 00 05/06/2024 3.45% 11/06/2019 Interest Fed Farm Cr Bk 1,077. 80 11/06/2023 3.17% SFAM Page 21 of 24 25 of 71 Transaction Ledger Report From 10/01/2019 to 12/31/2019 Oak Brook Firefighters' Pension Fund Trade Principal Accrued Date Activity Description Quantity Amount Pd/Rec 11/07/2019 Interest Fed Farm Cr Bk 1,890. 00 11/07/2028 3.78% Call 11/07/2023 100.00 11/08/2019 Deposit Schwab Government Money Fund 177,689. 59 11/15/2019 Dividend Schwab Government Money Fund 206. 12 11/15/2019 Interest US Treas Note 1,187. 50 05/15/2027 2.375% 11/15/2019 Interest US Treas Note 2,062. 50 11/15/2023 2.75% 11/15/2019 Interest US Treas Note 2,343. 75 11/15/2028 3.125% 11/16/2019 Interest Fed Farm Cr Bk 1,835. 00 05/16/2028 3.67% Call 05/16/2023 100.00 11/17/2019 Interest Fed Farm Cr Bk 3,300. 00 05/17/2028 3.30% 11/20/2019 Withdrawal Schwab Government Money Fund 100,000. 00 11/20/2019 Withdrawal Schwab Government Money Fund 100,000. 00 11/20/2019 Withdrawal Schwab Government Money Fund 42,058. 15 11/25/2019 Interest Fed Farm Cr Bk 3,750. 00 11/25/2030 3.00% 11/25/2019 Interest US Bancorp 2,578. 13 05/24/2021 4.125% Call 04/23/2021 100.00 11/26/2019 Long Gain Pioneer Equity Income 1,252. 259 45,419. 45 11/28/2019 Interest Fed Farm Cr Bk 2,122. 50 11/28/2028 2.83% 11/30/2019 Interest US Treas Note 1,500. 00 11/30/2022 2.00% 12/01/2019 Interest Carbondale, IL 1,875. 00 12/01/2019 5.00% 12/01/2019 Interest Cook Cnty, IL 2,250. 00 12/01/2024 4.50% 12/01/2019 Interest Cook Cnty, IL 2,550. 00 12/01/2026 5.10% 12/01/2019 Interest Fed Farm Cr Bk 1,000. 00 12/01/2021 2.00% 12/01/2019 Interest Gilead Sciences 3,300. 00 12/01/2021 4.40% Call 09/01/2021 100.00 12/01/2019 Interest Hoffman Estates, IL 1,125. 00 12/01/2030 4.50% Call 12/01/2024 100.00 12/01/2019 Interest Skokie, IL 1,762. 50 12/01/2024 2.35% 12/01/2019 Sell Carbondale, IL (75,000)75,000. 00 0. 00 12/01/2019 5.00% 12/03/2019 Deposit Schwab Government Money Fund 179,854. 35 12/04/2019 Buy Fed Farm Cr Bk 150,000 150,000. 00 26. 00 12/02/2030 2.08% 12/04/2019 Buy US Treas Note 100,000 99,465. 98 156. 25 10/31/2026 1.625% 12/06/2019 Short Gain TIAA Nuveen Small Cap Index 113. 385 2,308. 52 12/06/2019 Qualified Dividend TIAA Nuveen Small Cap Index 386. 77 7,874. 63 12/06/2019 Long Gain TIAA Nuveen Small Cap Index 941. 824 19,175. 54 12/08/2019 Interest Fed Farm Cr Bk 1,137. 50 06/08/2020 4.55% 12/08/2019 Interest Fed Home Ln Bk 1,642. 36 06/08/2029 2.75% SFAM Page 22 of 24 26 of 71 Transaction Ledger Report From 10/01/2019 to 12/31/2019 Oak Brook Firefighters' Pension Fund Trade Principal Accrued Date Activity Description Quantity Amount Pd/Rec 12/09/2019 Interest Fed Farm Cr Bk 1,437. 50 06/09/2026 2.875% 12/09/2019 Interest Fed Home Ln Bk 1,875. 00 12/09/2022 2.50% 12/10/2019 Interest Fed Farm Cr Bk 805. 00 12/10/2025 3.22% 12/10/2019 Interest Fed Home Ln Bk 687. 50 12/10/2027 2.75% 12/11/2019 Interest Fed Home Ln Bk 937. 50 12/11/2020 1.875% 12/12/2019 Short Gain MFS International Growth I 9. 417 382. 53 12/12/2019 Long Gain MFS International Growth I 38. 219 1,552. 47 12/12/2019 Qualified Dividend MFS International Growth I 100. 389 4,077. 81 12/13/2019 Interest Fed Home Ln Bk 1,968. 75 06/13/2025 2.625% 12/13/2019 Short Gain Oppenheimer Developing Markets 10. 965 491. 55 12/13/2019 Qualified Dividend Oppenheimer Developing Markets 46. 703 2,093. 71 12/13/2019 Long Gain Oppenheimer Developing Markets 117. 65 5,274. 26 12/13/2019 Short Gain T Rowe Price Growth Stock 7. 858 562. 64 12/13/2019 Qualified Dividend T Rowe Price Growth Stock 188. 596 13,503. 44 12/13/2019 Long Gain T Rowe Price Growth Stock 927. 261 66,391. 91 12/13/2019 Short Gain T Rowe Price QM US Small-Cap Growt 4. 131 161. 33 12/13/2019 Long Gain T Rowe Price QM US Small-Cap Growt 1,346. 805 52,592. 73 12/14/2019 Interest Fed Farm Cr Bk 1,675. 00 12/14/2028 3.35% 12/15/2019 Interest Champaign, IL 2,525. 00 12/15/2025 5.05% 12/15/2019 Interest Fed Farm Cr Bk 1,935. 00 06/15/2027 2.58% 12/15/2019 Interest Fox River Grove, IL 2,775. 00 12/15/2022 5.55% 12/15/2019 Interest Oakbrook Ter, IL 1,500. 00 12/15/2025 3.00% Call 12/15/2022 100.00 12/15/2019 Interest The Home Depot,1,458. 61 06/15/2029 2.95% Call 03/15/2029 100.00 12/15/2019 Sell Fox River Grove, IL (100,000)100,000. 00 0. 00 12/15/2022 5.55% 12/16/2019 Interest Champaign, IL 14. 03 12/15/2025 5.05% 12/16/2019 Sell Champaign, IL (100,000)100,000. 00 0. 00 12/15/2025 5.05% 12/17/2019 Short Gain Victory Sycamore 41. 151 1,642. 34 12/17/2019 Long Gain Victory Sycamore 611. 723 24,413. 88 12/18/2019 Qualified Dividend Cohen & Steers Realty 63. 292 2,886. 10 12/18/2019 Short Gain First Eagle Overseas 0. 898 21. 85 12/18/2019 Qualified Dividend First Eagle Overseas 255. 34 6,214. 98 12/18/2019 Long Gain First Eagle Overseas 370. 221 9,011. 18 12/18/2019 Qualified Dividend Goldman Sachs Small Cap 250. 042 6,973. 68 12/19/2019 Withdrawal Schwab Government Money Fund 100,000. 00 12/19/2019 Withdrawal Schwab Government Money Fund 100,000. 00 12/19/2019 Withdrawal Schwab Government Money Fund 44,081. 02 12/19/2019 Buy US Treas Note 100,000 99,769. 53 223. 21 10/31/2023 1.625% 12/19/2019 Long Gain LSV Value Equity Fund 1,452. 879 40,637. 03 12/20/2019 Qualified Dividend Goldman Sachs International 863. 375 11,180. 71 12/20/2019 Qualified Dividend Vanguard 500 Index Fund 72. 24 21,466. 75 12/23/2019 Long Gain AQR Large Cap Defensive 9. 032 214. 14 SFAM Page 23 of 24 27 of 71 Transaction Ledger Report From 10/01/2019 to 12/31/2019 Oak Brook Firefighters' Pension Fund Trade Principal Accrued Date Activity Description Quantity Amount Pd/Rec 12/23/2019 Qualified Dividend AQR Large Cap Defensive 418. 124 9,913. 73 12/23/2019 Qualified Dividend Victory Sycamore 66. 463 2,661. 86 12/24/2019 Interest Fed Farm Cr Bk 2,570. 00 12/24/2026 2.57% 12/26/2019 Qualified Dividend Pioneer Equity Income 284. 49 10,557. 41 12/26/2019 Interest Wal-Mart Stores 850. 00 06/26/2023 3.40% Call 05/26/2023 100.00 12/30/2019 Deposit Schwab Government Money Fund 217,404. 47 12/30/2019 Qualified Dividend LSV Value Equity Fund 1,172. 668 32,095. 93 12/31/2019 Deposit Schwab Government Money Fund 83,908. 82 12/31/2019 Dividend Schwab Government Money Fund 378. 32 12/31/2019 Interest US Treas Note 1,062. 50 12/31/2022 2.125% Information in this report is based on data provided by the custodian. SFAM Page 24 of 24 28 of 71 Monthly Financial Report For the Month Ended December 31, 2019 Prepared By 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS 60563 PHONE 630.393.1483 • FAX 630.393.2516 www.lauterbachamen.com 29 of 71 Oak Brook Firefighters' Pension Fund Table of Contents Starting on Page Accountants' Compilation Report................................................................................................1-1 Financial Statements Statement of Net Position - Modified Cash Basis................................................................... 2-1 Statement of Changes in Net Position - Modified Cash Basis................................................ 2-2 Other Supplementary Information Cash & Investments - Pie Chart.............................................................................................. 3-1 Cash Analysis Report.............................................................................................................. 4-1 Cash Analysis Summary - Graph............................................................................................ 5-1 Revenue Report....................................................................................................................... 6-1 Expenses - Bar Chart............................................................................................................... 7-1 Expense Report........................................................................................................................ 8-1 Member Contribution Report.................................................................................................. 9-1 Payroll Batch Report............................................................................................................... 10-1 Quarterly Vendor Check Report.............................................................................................. 11-1 30 of 71 31 of 71 January 15, 2020 Oak Brook Firefighters' Pension Fund 1200 Oak Brook Road Oak Brook, IL 60523 To Members of the Pension Board: Management is responsible for the accompanying interim financial statements of the Oak Brook Firefighters'Pension Fund which comprise the statement of net position -modified cash basis as of December 31,2019 and the related statement of changes in net position -modified cash basis for the twelve months then ended in accordance withthe modified cash basis of accounting and for determining that the modified cash basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. We did not audit or review the interim financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion,nor provide any form of assurance on these interim financial statements. The interim financial statements are prepared in accordance with the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Management has elected to omit substantially all of the disclosures ordinarily included in interim financial statements prepared in accordance with the modified cash basis of accounting.If the omitted disclosures were included in the interim financial statements and other supplementary information, they might influence the user's conclusions about the Pension Fund's assets, liabilities, net position, additions and deductions. Accordingly, the interim financial statements and other supplementary information are not designed for those who are not informed about such matters. Other Matter The other supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. The other supplementary information was subject to our compilation engagement. We have not audited or reviewed the other supplementary information nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion,nor provide any form of assurance on the other supplementary information. Cordially, Lauterbach & Amen, LLP 1-1 32 of 71 33 of 71 Assets Cash and Cash Equivalents 14,899.95$ Investments at Fair Market Value Money Market Mutual Funds 448,973.03 Fixed Income 11,405,449.07 Mutual Funds 18,969,934.79 Total Cash and Investments 30,839,256.84 Accrued Interest 73,304.42 Prepaids 1,468.67 Total Assets 30,914,029.93 Liabilities Expenses Due/Unpaid 16,743.52 Total Liabilities 16,743.52 Net Position Held in Trust for Pension Benefits 30,897,286.41 Oak Brook Firefighters' Pension Fund Statement of Net Position - Modified Cash Basis As of December 31, 2019 See Accountants' Compilation Report 2-1 34 of 71 Additions Contributions - Municipal 2,150,924.00$ Contributions - Members 308,176.05 Total Contributions 2,459,100.05 Investment Income Interest and Dividends Earned 866,113.69 Net Change in Fair Value 4,162,937.09 Total Investment Income 5,029,050.78 Less Investment Expense (56,159.00) Net Investment Income 4,972,891.78 Total Additions 7,431,991.83 Deductions Administration 46,208.03 Pension Benefits and Refunds Pension Benefits 2,889,666.84 Refunds 0.00 Total Deductions 2,935,874.87 Change in Position 4,496,116.96 Net Position Held in Trust for Pension Benefits Beginning of Year 26,401,169.45 End of Period 30,897,286.41 Oak Brook Firefighters' Pension Fund Statement of Changes in Net Position - Modified Cash Basis For the Twelve Months Ended December 31, 2019 See Accountants' Compilation Report 2-2 35 of 71 36 of 71 Oak Brook Firefighters' Pension FundCash & Cash Equivalents0%Money Market Mutual Funds1%Fixed Income37%Mutual Funds62%Cash and InvestmentsSee Accountants' Compilation Report 3-137 of 71 01/31/1902/28/1903/31/1904/30/1905/31/1906/30/1907/31/1908/31/1909/30/1910/31/1911/30/1912/31/19Financial InstitutionsFifth Third Bank - CK #10843640040,992$ 40,99841,00541,01241,02141,02141,038-----Harris Bank - CK #318-320-9596,037 528,422 450,183 370,373 292,928 214,342 185,23616,727 191,334 14,973 12,950 14,900637,029 569,420 491,188 411,385 333,949 255,363 226,274 16,727 191,334 14,973 12,950 14,900Schwab - MM #2043-3707341,752361,707 304,337 484,585 314,697 327,022 353,841 681,505 7,737 301,672 423,785 448,973341,752 361,707 304,337 484,585 314,697 327,022 353,841 681,505 7,737 301,672 423,785 448,973Total978,781 931,127 795,525 895,970 648,646 582,385 580,115 698,232 199,071 316,645 436,735 463,873ContributionsContributions in Lieu of Tax Levy226,420 147,242 143,744 144,461 146,806 148,195 147,115307,995 153,744 154,926 156,814 273,462Contributions - Current Year35,585 23,141 22,591 22,704 23,073 23,291 23,121 33,957 22,590 22,763 23,041 27,851Contributions - Prior Year- ------ 3,714 ----Interest Received from Members- ------ 754 ----262,005 170,383 166,335 167,165 169,879 171,486 170,236 346,420 176,334 177,689 179,855 301,313ExpensesPension Benefits234,832 235,328 241,782 241,754241,754 242,031 242,031 242,031 242,031 242,031 242,031 242,031Administration16,605 2,670 2,792 19,2935,670 8,041 21,917 4,461 1,720 17,048 2,050 100251,437 237,998 244,574 261,047 247,424 250,072 263,948 246,492 243,751 259,079 244,081 242,131Total Contributions less Expenses10,568(67,615) (78,239) (93,882) (77,545) (78,586) (93,712)99,928(67,417) (81,390) (64,226)59,182Oak Brook Firefighters' Pension FundCash Analysis ReportFor the Twelve Periods Ending December 31, 2019See Accountants' Compilation Report4-138 of 71 Oak Brook Firefighters' Pension Fund$0$200,000$400,000$600,000$800,000$1,000,000$1,200,000Cash Analysis SummaryCash & Money Market BalancesTotal ContributionsBenefit & Administrative ExpensesSee Accountants' Compilation Report 5-139 of 71 Contributions Contributions - Municipal 41-240-00 - Contributions in Lieu of Tax Levy 273,462.03$1 2,150,924.00 273,462.03 2,150,924.00 Contributions - Members 41-410-00 - Contributions - Current Year 27,851.26 1 303,708.30 41-420-00 - Contributions - Prior Year 0.00 1 3,714.01 41-440-00 - Interest Received from Members 0.00 1 753.74 27,851.26 308,176.05 Total Contributions 301,313.29 1 0 2,459,100.05 Investment Income Interest and Dividends 43-102-01 - Fifth Third Bank - Checking #108436400 0.00 1 53.06 43-252-05 - Schwab - Fixed Income #2043-3707 42,597.07 1 327,205.26 43-550-05 - Schwab - Mutual Funds #2043-3707 356,334.64 1 541,241.28 398,931.71 7 868,499.60 Gains and Losses 44-252-05 - Schwab - Fixed Income #2043-3707 (64,087.90)1 463,809.12 44-550-05 - Schwab - Mutual Funds #2043-3707 124,244.15 1 3,699,127.97 60,156.25 4 4,162,937.09 Other Income 45-200-00 - Accrued Interest (13,190.03)1 (2,485.91) 49-000-01 - Other Income 0.00 1 100.00 (13,190.03)4 (2,385.91) Total Investment Income 445,897.93 2 7 5,029,050.78 Total Revenue 747,211.22 7,488,150.83 Oak Brook Firefighters' Pension Fund Revenue Report as of December 31, 2019 Received Received this Month this Year See Accountants' Compilation Report 6-1 40 of 71 Oak Brook Firefighters' Pension Fund200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,0001,800,0002,000,000ServiceNon-DutyDisabilityDuty Disability OccupationalDiseaseSurviving Spouse AdministrativeExpenses1,900,370 40,941 536,593 61,207 350,556 102,367Pension Benefits and ExpensesSee Accountants' Compilation Report 7-141 of 71 Expended Expended this Month this Year Pensions and Benefits 51-020-00 - Service Pensions 159,481.23$1,900,369.74 51-030-00 - Non-Duty Disability Pensions 1,968.00 40,940.75 51-040-00 - Duty Disability Pensions 44,708.93 536,592.78 51-050-00 - Occupational Disease Pensions 5,100.60 61,207.20 51-060-00 - Surviving Spouse Pensions 30,772.26 350,556.37 Total Pensions and Benefits 242,031.02 2,889,666.84 Administrative Insurance 52-150-01 - Fiduciary Insurance 0.00 4,435.00 0.00 4,435.00 Professional Services 52-170-01 - Actuarial Services 0.00 3,500.00 52-170-02 - Auditing Services 0.00 3,225.00 52-170-03 - Accounting & Bookkeeping Services 0.00 16,820.00 52-170-05 - Legal Services 100.05 4,097.32 52-170-06 - PSA/Court Reporter 0.00 7,580.00 100.05 35,222.32 Investment 52-190-01 - Investment Manager/Advisor Fees 0.00 56,159.00 0.00 56,159.00 Equipment 52-230-02 - Repairs, Rental and Maintenance 0.00 27.13 0.00 27.13 Other Expense 52-290-25 - Conference/Seminar Fees 0.00 1,240.00 52-290-34 - IDOI Filing Fee Expense 0.00 5,283.58 0.00 6,523.58 Total Administrative 100.05 102,367.03 Total Expenses 242,131.07 2,992,033.87 Oak Brook Firefighters' Pension Fund Expense Report as of December 31, 2019 See Accountants' Compilation Report 8-1 42 of 71 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Arzer, Jacob G.$46,324.96 9,015.09 0.00 0.00 55,340.05 Babcock, Nicholas W.81,015.67 9,161.85 0.00 0.00 90,177.52 Bielawa, Matthew G.124,897.32 9,042.11 0.00 0.00 133,939.43 Bitterlin, Brian W.159,629.26 10,766.94 0.00 0.00 170,396.20 Busse, Zachary M.37,651.84 8,505.25 0.00 0.00 46,157.09 Clark, Gary E.189,748.59 12,590.88 0.00 0.00 202,339.47 Corkey, David B.130,756.20 9,146.28 0.00 0.00 139,902.48 Doran, Connor T.28,645.90 8,010.41 0.00 0.00 36,656.31 Ebsen, Robert T.67,779.42 9,099.01 0.00 0.00 76,878.43 Erickson, Michael D.134,103.51 10,757.48 0.00 0.00 144,860.99 Fagan, John J.111,146.00 10,834.94 0.00 0.00 121,980.94 Fleege, Kevin W.144,070.85 11,859.33 0.00 0.00 155,930.18 Focht, Eric D.0.00 4,754.67 0.00 0.00 4,754.67 Janney, Michael E.146,295.57 9,155.73 0.00 0.00 155,451.30 Johnson, Marc E.102,930.56 9,133.78 0.00 0.00 112,064.34 Kaczmarczyk, David R.104,057.93 10,748.03 0.00 0.00 114,805.96 Kelly, Sean P.97,962.64 9,136.80 0.00 0.00 107,099.44 Kornfeind, David 107,538.48 9,136.79 0.00 0.00 116,675.27 Kushner, Jeffrey A.23,457.67 7,887.37 0.00 0.00 31,345.04 Liss, Barry J.59,698.43 14,169.52 0.00 0.00 73,867.95 Marciniak, Jeffrey D.194,885.66 12,591.65 0.00 0.00 207,477.31 Matousek, Kyle M.63,137.20 9,099.04 0.00 0.00 72,236.24 Meyers, Daniel B.92,850.73 9,136.80 0.00 0.00 101,987.53 Micek, Robert S. Jr.82,640.45 9,136.79 0.00 0.00 91,777.24 Nyhanna, William R.84,851.85 9,802.34 0.00 0.00 94,654.19 Pavlovic, Michael 145,248.21 10,757.48 0.00 0.00 156,005.69 Picciola, Gino 28,700.73 7,948.93 0.00 0.00 36,649.66 Ruska, Michelle H.125,446.63 9,146.28 0.00 0.00 134,592.91 Sinclair, Thomas W. IV 19,722.86 7,746.53 0.00 0.00 27,469.39 Swagler, Shawn M.155,898.49 9,161.60 0.00 0.00 165,060.09 Washington, Glen A.123,739.59 9,146.30 0.00 0.00 132,885.89 3,014,833.20 296,586.00 0.00 0.00 3,311,419.20 Oak Brook Firefighters' Pension Fund Member Contribution Report As of Month Ended December 31, 2019 See Accountants' Compilation Report 9-1 43 of 71 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Oak Brook Firefighters' Pension Fund Member Contribution Report As of Month Ended December 31, 2019 Lorence, Sarie A.30,583.39 4,811.08 4,467.75 0.00 39,862.22 Vassios, Theodore W.215,241.93 2,311.22 0.00 0.00 217,553.15 Totals 3,260,658.52 303,708.30 4,467.75 0.00 3,568,834.57 41-420-00 41-440-00 41-450-00 Prior Year Interest from Other Member Name - Type of Purchase Contributions Members Revenue Total Lorence, Sarie A. - Reciprocity - Principal 3,714.01 0.00 0.00 3,714.01 Lorence, Sarie A. - Reciprocity- Interest 0.00 753.74 0.00 753.74 Totals 3,714.01 753.74 0.00 4,467.75 Service Purchases Inactive/Terminated Members See Accountants' Compilation Report 9-2 44 of 71 Disability Fire Dependent***-**0454105971 Jacobs, Paul R.0$28.54 $28.54 $0.00 $0.00 $0.00 $0.00 $0.00105971 Jacobs, Paul R.0$28.54 $28.54 $0.00 $0.00 $0.00 $0.00 $0.00105971 Jacobs, Paul R.0$28.54 $28.54 $0.00 $0.00 $0.00 $0.00 $0.00***-**0454 Subtotal:$85.62 $85.62 $0.00 $0.00 $0.00 $0.00 $0.00***-**9434105972 Watkins, Garry R.0$31.19 $31.19 $0.00 $0.00 $0.00 $0.00 $0.00***-**9434 Subtotal:$31.19 $31.19 $0.00 $0.00 $0.00 $0.00 $0.00***-**7231105977 White, Jennifer M.0$23.20 $23.20 $0.00 $0.00 $0.00 $0.00 $0.00***-**7231 Subtotal:$23.20 $23.20 $0.00 $0.00 $0.00 $0.00 $0.00Disability Fire Dependent Subtotal:$140.01 $140.01 $0.00 $0.00 $0.00 $0.00 $0.00Duty Disability***-**8873105944 DeWitt, Charles W.0$5,454.59 $5,454.59 $0.00 $0.00 $0.00 $0.00 $0.00Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-145 of 71 ***-**8873 Subtotal:$5,454.59 $5,454.59 $0.00 $0.00 $0.00 $0.00 $0.00***-**8262105945 Garrigan, William0$5,424.12 $5,424.12 $0.00 $0.00 $0.00 $0.00 $0.00***-**8262 Subtotal:$5,424.12 $5,424.12 $0.00 $0.00 $0.00 $0.00 $0.00***-**0790105946 Harris, Scott B.0$4,496.75 $5,061.10 $0.00 $64.35 $0.00 $0.00 $0.00105946 Payment to Chase Bank, Harris -0$500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**0790 Subtotal:$4,996.75 $5,061.10 $0.00 $64.35 $0.00 $0.00 $0.00***-**5183105958 Horn, Arthur W.0$3,223.18 $3,223.18 $0.00 $0.00 $0.00 $0.00 $0.00***-**5183 Subtotal:$3,223.18 $3,223.18 $0.00 $0.00 $0.00 $0.00 $0.00***-**0454105971 Jacobs, Paul R.0$3,715.47 $3,852.39 $0.00 $136.92 $0.00 $0.00 $0.00***-**0454 Subtotal:$3,715.47 $3,852.39 $0.00 $136.92 $0.00 $0.00 $0.00***-**7304105948 Mylin, Robert P.0$2,216.65 $2,216.65 $0.00 $0.00 $0.00 $0.00 $0.00Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-246 of 71 ***-**7304 Subtotal:$2,216.65 $2,216.65 $0.00 $0.00 $0.00 $0.00 $0.00***-**4308105966 Naus, Gary P.0$5,416.24 $5,444.91 $0.00 $0.00 $0.00 $0.00 $28.67***-**4308 Subtotal:$5,416.24 $5,444.91 $0.00 $0.00 $0.00 $0.00 $28.67***-**9998105974 Richter, Frank H.0$4,461.50 $4,461.50 $0.00 $0.00 $0.00 $0.00 $0.00***-**9998 Subtotal:$4,461.50 $4,461.50 $0.00 $0.00 $0.00 $0.00 $0.00***-**6778105973 Smyth, Sean F.0$1,855.59 $1,855.59 $0.00 $0.00 $0.00 $0.00 $0.00***-**6778 Subtotal:$1,855.59 $1,855.59 $0.00 $0.00 $0.00 $0.00 $0.00***-**9434105972 Watkins, Garry R.0$2,289.32 $2,963.46 $674.14 $0.00 $0.00 $0.00 $0.00***-**9434 Subtotal:$2,289.32 $2,963.46 $674.14 $0.00 $0.00 $0.00 $0.00***-**7231105977 White, Jennifer M.0$4,611.43 $4,611.43 $0.00 $0.00 $0.00 $0.00 $0.00***-**7231 Subtotal:$4,611.43 $4,611.43 $0.00 $0.00 $0.00 $0.00 $0.00Duty Disability Subtotal:$43,664.84 $44,568.92 $674.14 $201.27 $0.00 $0.00 $28.67Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-347 of 71 Non-Duty Disability***-**6678105964 Huffman, Lawrence W.0$1,968.00 $1,968.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**6678 Subtotal:$1,968.00 $1,968.00 $0.00 $0.00 $0.00 $0.00 $0.00Non-Duty Disability Subtotal:$1,968.00 $1,968.00 $0.00 $0.00 $0.00 $0.00 $0.00Occupational Disability***-**8830105956 Petter, Raymond H.0$4,227.33 $5,100.60 $873.27 $0.00 $0.00 $0.00 $0.00***-**8830 Subtotal:$4,227.33 $5,100.60 $873.27 $0.00 $0.00 $0.00 $0.00Occupational Disability Subtotal:$4,227.33 $5,100.60 $873.27 $0.00 $0.00 $0.00 $0.00QILDRO***-**2551Q115823 Broderick, Mary E.0$1,333.44 $1,407.53 $0.00 $0.00 $0.00 $0.00 $74.09***-**2551 Subtotal:$1,333.44 $1,407.53 $0.00 $0.00 $0.00 $0.00 $74.09***-**2950Q105978 Stevens, Frances0$1,156.50 $1,156.50 $0.00 $0.00 $0.00 $0.00 $0.00***-**2950 Subtotal:$1,156.50 $1,156.50 $0.00 $0.00 $0.00 $0.00 $0.00Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-448 of 71 ***-**0876Q105979 Zamboni, Alida M.0$999.02 $999.02 $0.00 $0.00 $0.00 $0.00 $0.00***-**0876 Subtotal:$999.02 $999.02 $0.00 $0.00 $0.00 $0.00 $0.00QILDRO Subtotal:$3,488.96 $3,563.05 $0.00 $0.00 $0.00 $0.00 $74.09Service***-**4555105963 Bahnsen, Mark C.0$5,197.77 $6,127.54 $0.00 $0.00 $0.00 $0.00 $929.77***-**4555 Subtotal:$5,197.77 $6,127.54 $0.00 $0.00 $0.00 $0.00 $929.77***-**2533105962 Bodony, James G.0$8,186.80 $10,783.09 $748.07 $0.00 $0.00 $0.00 $1,848.22***-**2533 Subtotal:$8,186.80 $10,783.09 $748.07 $0.00 $0.00 $0.00 $1,848.22***-**1229105953 Brazel, John T.0$7,093.74 $8,817.53 $0.00 $0.00 $0.00 $0.00 $1,546.82105953 USAA Life Insurance Company280$176.97 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**1229 Subtotal:$7,270.71 $8,817.53 $0.00 $0.00 $0.00 $0.00 $1,546.82***-**2895105960 Cronholm, Robert R.$4,935.34 $6,270.04 $0.00 $0.00 $0.00 $0.00 $1,334.70Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-549 of 71 0***-**2895 Subtotal:$4,935.34 $6,270.04 $0.00 $0.00 $0.00 $0.00 $1,334.70***-**1038105954 Ekkert, Clifford A.0$4,214.07 $6,452.74 $1,698.67 $0.00 $0.00 $0.00 $540.00***-**1038 Subtotal:$4,214.07 $6,452.74 $1,698.67 $0.00 $0.00 $0.00 $540.00***-**2832105955 Fleishman, Mark L.0$4,935.41 $5,536.77 $0.00 $0.00 $0.00 $0.00 $601.36***-**2832 Subtotal:$4,935.41 $5,536.77 $0.00 $0.00 $0.00 $0.00 $601.36***-**2243105951 Kovarik, Joseph0$6,473.34 $7,594.18 $364.92 $0.00 $0.00 $0.00 $755.92***-**2243 Subtotal:$6,473.34 $7,594.18 $364.92 $0.00 $0.00 $0.00 $755.92***-**0972105957 Lindeman, William H.0$4,427.31 $5,223.19 $795.88 $0.00 $0.00 $0.00 $0.00***-**0972 Subtotal:$4,427.31 $5,223.19 $795.88 $0.00 $0.00 $0.00 $0.00***-**1392105950 Mager Jr, Arthur C.0$4,897.07 $5,914.46 $0.00 $0.00 $0.00 $0.00 $1,017.39***-**1392 Subtotal:$4,897.07 $5,914.46 $0.00 $0.00 $0.00 $0.00 $1,017.39Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-650 of 71 ***-**3533105943 McEllin, Thomas J.0$2,744.13 $10,185.08 $136.92 $0.00 $0.00 $0.00 $693.00105943 Blue Cross Blue Shield - Illinois282$149.03 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00105943 Payment to Radius, McEllin -0$6,462.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**3533 Subtotal:$9,355.16 $10,185.08 $136.92 $0.00 $0.00 $0.00 $693.00***-**1242105952 Morton, Robert J.0$8,012.01 $8,902.44 $0.00 $0.00 $0.00 $0.00 $890.43***-**1242 Subtotal:$8,012.01 $8,902.44 $0.00 $0.00 $0.00 $0.00 $890.43***-**9900105941 Nielsen, Robert D.0$6,484.93 $7,760.63 $0.00 $0.00 $0.00 $0.00 $1,275.70***-**9900 Subtotal:$6,484.93 $7,760.63 $0.00 $0.00 $0.00 $0.00 $1,275.70***-**7971105940 O'Rourke, William T.0$3,584.21 $4,063.36 $0.00 $0.00 $0.00 $0.00 $479.15***-**7971 Subtotal:$3,584.21 $4,063.36 $0.00 $0.00 $0.00 $0.00 $479.15***-**7761109373 Robertson, Robert V.0$4,855.30 $5,612.50 $0.00 $0.00 $0.00 $0.00 $757.20Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-751 of 71 ***-**7761 Subtotal:$4,855.30 $5,612.50 $0.00 $0.00 $0.00 $0.00 $757.20***-**3107105970 Schoppe, Mark S.0$6,017.27 $6,616.73 $0.00 $0.00 $0.00 $0.00 $599.46***-**3107 Subtotal:$6,017.27 $6,616.73 $0.00 $0.00 $0.00 $0.00 $599.46***-**5958105967 Schultz, Dennis M.0$5,377.86 $6,244.01 $0.00 $0.00 $0.00 $0.00 $866.15***-**5958 Subtotal:$5,377.86 $6,244.01 $0.00 $0.00 $0.00 $0.00 $866.15***-**1708105976 Sittig, Daryl L.0$6,448.16 $7,057.46 $0.00 $0.00 -$382.14 $0.00 $696.56105976Aetna281$294.88 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**1708 Subtotal:$6,743.04 $7,057.46 $0.00 $0.00 -$382.14 $0.00 $696.56***-**2658109052 Stanfa, Thomas P.0$6,215.05 $7,331.52 $0.00 $0.00 $0.00 $0.00 $1,116.47***-**2658 Subtotal:$6,215.05 $7,331.52 $0.00 $0.00 $0.00 $0.00 $1,116.47***-**0086105942 Stevens, Anthony J.0$3,846.94 $5,546.25 $0.00 $0.00 $0.00 $1,156.50 $542.81Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-852 of 71 ***-**0086 Subtotal:$3,846.94 $5,546.25 $0.00 $0.00 $0.00 $1,156.50 $542.81***-**1446105961 Templin, Charles E.0$4,939.16 $5,651.53 $0.00 $35.52 $0.00 $0.00 $676.85***-**1446 Subtotal:$4,939.16 $5,651.53 $0.00 $35.52 $0.00 $0.00 $676.85***-**4489115497 Vassios, Theodore W.0$5,029.95 $6,950.75 $0.00 $0.00 $0.00 $1,407.53 $513.27***-**4489 Subtotal:$5,029.95 $6,950.75 $0.00 $0.00 $0.00 $1,407.53 $513.27***-**0884105949 Wies, Konrad R.0$5,901.36 $8,577.40 $1,698.67 $0.00 $0.00 $0.00 $977.37***-**0884 Subtotal:$5,901.36 $8,577.40 $1,698.67 $0.00 $0.00 $0.00 $977.37***-**9958105969 Zamboni, James F.0$4,656.77 $6,262.03 $0.00 $0.00 $0.00 $999.02 $435.24105969 Blue Cross Blue Shield of Illinois283$171.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**9958 Subtotal:$4,827.77 $6,262.03 $0.00 $0.00 $0.00 $999.02 $435.24Service Subtotal:$131,727.83 $159,481.23 $5,443.13 $35.52 -$382.14 $3,563.05 $19,093.84Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-953 of 71 Surviving Spouse***-**3678105975 Clark, Ruth A.0$3,971.14 $4,963.93 $0.00 $0.00 $0.00 $0.00 $992.79***-**3678 Subtotal:$3,971.14 $4,963.93 $0.00 $0.00 $0.00 $0.00 $992.79***-**5784108043 Cote, Mary A.0$3,685.86 $4,090.96 $0.00 $0.00 $0.00 $0.00 $405.10***-**5784 Subtotal:$3,685.86 $4,090.96 $0.00 $0.00 $0.00 $0.00 $405.10***-**8646108045 DiIorio, Margaret0$2,846.72 $2,846.72 $0.00 $0.00 $0.00 $0.00 $0.00***-**8646 Subtotal:$2,846.72 $2,846.72 $0.00 $0.00 $0.00 $0.00 $0.00***-**4859105968 Grodek, Margaret A.0$3,142.15 $3,742.15 $0.00 $0.00 $0.00 $0.00 $600.00***-**4859 Subtotal:$3,142.15 $3,742.15 $0.00 $0.00 $0.00 $0.00 $600.00***-**5979108044 Heitschel-Arling, Joyce A.0$2,702.65 $3,390.67 $335.31 $0.00 $0.00 $0.00 $352.71***-**5979 Subtotal:$2,702.65 $3,390.67 $335.31 $0.00 $0.00 $0.00 $352.71Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-1054 of 71 ***-**3386105965 Lundahl, Roberta M.0$2,994.94 $2,994.94 $0.00 $0.00 $0.00 $0.00 $0.00***-**3386 Subtotal:$2,994.94 $2,994.94 $0.00 $0.00 $0.00 $0.00 $0.00***-**5763108042 Meyers, Gail C.0$4,070.43 $4,070.43 $0.00 $0.00 $0.00 $0.00 $0.00***-**5763 Subtotal:$4,070.43 $4,070.43 $0.00 $0.00 $0.00 $0.00 $0.00***-**0714105947 Pine, Joanne F.0$4,672.46 $4,672.46 $0.00 $0.00 $0.00 $0.00 $0.00***-**0714 Subtotal:$4,672.46 $4,672.46 $0.00 $0.00 $0.00 $0.00 $0.00Surviving Spouse Subtotal:$28,086.35 $30,772.26 $335.31 $0.00 $0.00 $0.00 $2,350.60Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroSee Accountants' Compilation Report 10-1155 of 71 Batches 38925Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date12/31/2019 RetroTotalsACH FlagPaymentsNet Payment TotalGrossMedicalInsuranceDentalInsuranceMisc QILDRO Deduct Federal TaxYesNo54458$212,511.44$791.88$213,303.32$245,594.07$0.00$245,594.07$7,325.85$0.00$7,325.85$236.79$0.00$236.79-$382.14$0.00-$382.14$3,563.05$0.00$3,563.05$21,547.20$0.00$21,547.20See Accountants' Compilation Report 10-1256 of 71 Check Invoice Check Date Number Vendor Name Amount Amount 10/08/19 30173 IPFA 52-290-25 2019 Fall Registration 435.00 52-290-25 Bodony, Fagan & Picciola 0.00 Check Amount 435.00 10/08/19 50087 Sawyer Falduto Asset Management, LLC 52-190-01 3Q19 Investment Manager/Advisor Fee 14,674.00 Check Amount 14,674.00 10/10/19 30174 Reimer & Dobrovolny, PC 52-170-05 C2500 F25346 Legal Service 191.50 Check Amount 191.50 10/21/19 30175 Lauterbach & Amen, LLP 52-170-03 #40137 09/19 Accounting Service 1,085.00 52-170-06 #40137 091/19 PSA 635.00 ACH Amount (Direct Deposit)1,720.00 10/23/19 30178 John Fagan* 52-230-02 Reimburse Lock Box Key 2019 27.13 Check Amount 27.13 10/31/19 30176 Village of Oak Brook - Insurance 20-220-00 Medical Insurance - 10/19 7,325.85 20-220-00 Dental Insurance 236.79 Check Amount 7,562.64 10/31/19 30177 Internal Revenue Service 20-230-00 Internal Revenue Service 21,547.20 ACH Amount (Direct Deposit)21,547.20 11/25/19 30181 Lauterbach & Amen, LLP 52-170-06 #41263 10/19 PSA 635.00 52-170-03 #40830 FYE18 MCR 330.00 52-170-03 #41263 10/19 Accounting Service 1,085.00 ACH Amount (Direct Deposit)2,050.00 11/29/19 30179 Village of Oak Brook - Insurance 20-220-00 Medical Insurance - 11/19 7,325.85 20-220-00 Dental Insurance 236.79 Check Amount 7,562.64 11/29/19 30180 Internal Revenue Service 20-230-00 Internal Revenue Service 21,547.20 ACH Amount (Direct Deposit)21,547.20 Oak Brook Firefighters' Pension Fund Quarterly Vendor Check Report All Bank Accounts October 1, 2019 - December 31, 2019 See Accountants' Compilation Report 11-1 57 of 71 Check Invoice Check Date Number Vendor Name Amount Amount 12/24/19 30185 Reimer & Dobrovolny, PC 52-170-05 C2500 F25639 Legal Service 100.05 Check Amount 100.05 12/31/19 30182 Village of Oak Brook - Insurance 20-220-00 Medical Insurance - 12/19 7,325.85 20-220-00 Dental Insurance 236.79 Check Amount 7,562.64 12/31/19 30183 Internal Revenue Service 20-230-00 Internal Revenue Service 21,547.20 ACH Amount (Direct Deposit)21,547.20 Total Payments 106,527.20 Oak Brook Firefighters' Pension Fund Quarterly Vendor Check Report All Bank Accounts October 1, 2019 - December 31, 2019 See Accountants' Compilation Report 11-2 58 of 71 2020 IPFA SPRING PENSION SEMINAR Friday May 1, 2020 Red Shift Empress Banquets 200 East Lake Street Addison, IL 60101 630-279-5900 SEMINAR REGISTRATION FORM Municipality, (please print or type) District, or Firm: _____________________________________________ Address: _________________________________________________ City: ____________________________________________ , IL Zip: ____________ Phone: _____________________________ SEMINAR FEES: IPFA Members: $ 150.00 Non - Members: $ 190.00 Walk-In Registration: $ 200.00 Avoid the walk-in surcharge – register on or before Friday, April 24, 2020 First Name: Last Name: e-mail Address: Member Non-Member ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ ____________________ _________________________ ____________________________________ $_______.___ $_______.____ TOTAL CHECK ENCLOSED $_______.____ Payment must accompany this Registration Form and be received in our office on or before Friday, April 24th to qualify for lower rates. Reservations received after the above date will be charged walk-in registration fee. Requests for refunds also must be received on or before Friday, April 24th for full fee refunds. No refunds of seminar fees after this date. Please mail the completed form to IPFA, 188 Industrial Drive, Suite 134, Elmhurst, IL 60126-1608, fax it to 630-833-2412, or scan & e-mail to ipfa@aol.com. Any questions, call 630-833-2405. For Tax Reporting Purposes our Federal I.D. Number is: 36-2650496. The Illinois Pension Statute requires continuing education for all pension board members. This seminar provides up to 8 hours of credits. For IPFA Office Use: Date: ___________ Check #: ___________ Amount: _____________ Payer: ________________________________________ ___________________________________________________________________________ 59 of 71 Type of Prior COLA Current Annualized Pensioner Pension Benefit Increase Benefit Benefit Bahnsen, Mark C.Service $6,127.54 183.83 6,311.37 75,736.44 Bodony, James G.Service 10,783.09 323.49 11,106.58 133,278.96 Brazel, John T.Service 8,817.53 264.53 9,082.06 108,984.72 Clark, Ruth A.Spouse 4,963.93 0.00 4,963.93 59,567.16 Cote, Mary A.Spouse 4,090.96 0.00 4,090.96 49,091.52 Cronholm, Robert R.Service 6,270.04 188.10 6,458.14 77,497.68 DeWitt, Charles W.Duty Disability 5,454.59 95.14 5,549.73 66,596.76 Di Iorio, Margaret Spouse - NT 2,846.72 0.00 2,846.72 34,160.64 Ekkert, Clifford A.Service 6,452.74 193.58 6,646.32 79,755.84 Fleishman, Mark L.Service 5,536.77 166.10 5,702.87 68,434.44 Garrigan, William Duty Disability - T 5,424.12 119.65 5,543.77 66,525.24 Grodek, Margaret A.Spouse 3,742.15 0.00 3,742.15 44,905.80 Harris, Scott B.Duty Disability - T 5,061.10 106.92 5,168.02 62,016.24 Heitschel-Arling, Joyce A.Spouse 3,390.67 0.00 3,390.67 40,688.04 Horn, Arthur W.Duty Disability 3,223.18 48.59 3,271.77 39,261.24 Huffman, Lawrence W.Non-Duty Disability 1,968.00 24.20 1,992.20 23,906.40 Jacobs, Paul R.Duty Disability 3,852.39 0.00 3,852.39 46,228.68 Jacobs, Adam - Dependent # 4 Duty Disability 28.54 0.86 29.40 352.80 Jacobs, Jayson - Dependent # 5 Duty Disability 28.54 0.86 29.40 352.80 Jacobs, Logan - Dependent # 3 Duty Disability 28.54 0.86 29.40 352.80 Kovarik, Joseph Service 7,594.18 227.83 7,822.01 93,864.12 Lindeman, William H.Service 5,223.19 156.70 5,379.89 64,558.68 Lundahl, Roberta M.Spouse - NT 2,994.94 0.00 2,994.94 35,939.28 Mager, Arthur C.Service 5,914.46 177.43 6,091.89 73,102.68 McEllin, Thomas J.Service 10,185.08 305.55 10,490.63 125,887.56 Meyers, Gail C.Spouse - NT 4,070.43 0.00 4,070.43 48,845.16 Morton, Robert J.Service 8,902.44 267.07 9,169.51 110,034.12 Mylin, Robert P.Duty Disability 2,216.65 27.41 2,244.06 26,928.72 Naus, Gary Duty Disability - T 5,444.91 115.03 5,559.94 66,719.28 Nielsen, Robert D.Service 7,760.63 232.82 7,993.45 95,921.40 O'Rourke, William T.Service 4,063.36 121.90 4,185.26 50,223.12 Petter, Raymond H.Occupational Disability 5,100.60 84.54 5,185.14 62,221.68 Pine, Joanne F.Spouse - NT 4,672.46 0.00 4,672.46 56,069.52 Richter, Frank H.Duty Disability 4,461.50 92.31 4,553.81 54,645.72 Robertson, Robert V.Service 5,612.50 168.38 5,780.88 69,370.56 Schoppe, Mark S.Service 6,616.73 198.50 6,815.23 81,782.76 Schultz, Dennis M.Service 6,244.01 187.32 6,431.33 77,175.96 Sittig, Daryl L.Service 7,057.46 211.72 7,269.18 87,230.16 Smyth, Sean F.Duty Disability 1,855.59 0.00 1,855.59 22,267.08 Stanfa, Thomas P.Service 7,331.52 219.95 7,551.47 90,617.64 Oak Brook Firefighters' Pension Fund Annual Benefit Increases (COLA) Effective as of January 1, 2020 Page 1 60 of 71 Type of Prior COLA Current Annualized Pensioner Pension Benefit Increase Benefit Benefit Oak Brook Firefighters' Pension Fund Annual Benefit Increases (COLA) Effective as of January 1, 2020 Stevens, Anthony J.Service 4,389.75 166.39 4,556.14 54,673.68 Stevens, Anthony J. - QILDRO QILDRO 1,156.50 0.00 1,156.50 13,878.00 Templin, Charles E.Service 5,651.53 169.55 5,821.08 69,852.96 Vassios, Theodore W.Service 5,543.22 0.00 5,543.22 66,518.64 Vassios, Theodore W. - QILDRO QILDRO 1,407.53 0.00 1,407.53 16,890.36 Watkins, Garry R.Duty Disability 2,963.46 0.00 2,963.46 35,561.52 Watkins, Joseph - Dependent # 3 Duty Disability 31.19 0.94 32.13 385.56 White, Jennifer M.Duty Disability 4,611.43 0.00 4,611.43 55,337.16 White, Amelia - Dependent # 1 Duty Disability 23.20 0.70 23.90 286.80 Weis, Konrad R.Service 8,577.40 257.32 8,834.72 106,016.64 Zamboni, James F.Service 5,263.01 157.89 5,420.90 65,050.80 Zamboni, James F. - QILDRO QILDRO 999.02 29.97 1,028.99 12,347.88 Totals 242,031.02 5,293.93 247,324.95 2,967,899.40 Page 2 61 of 71 Amount of New Monthly Reason Date Change Benefit Vassios, Theodore W.Initial Increase 3/1/2020 166.30 5,709.52 Vassios, Theodore W. - QILDRO Initial Increase 3/1/2020 42.22 1,449.75 White, Amelia - Dependent # 1 - Cease Benefits Cease Pro Rata 8/25/2021 (4.77)19.85 White, Amelia - Dependent # 1 Benefits Cease 1st Full Month 9/1/2021 (19.85)0.00 Watkins, Garry R.Initial Increase 1/1/2022 1,600.27 4,563.73 Jacobs, Logan - Dependent # 3 Benefits Cease 2/1/2022 (31.19)0.00 Watkins, Joseph - Dependent # 3 Benefits Cease 6/1/2022 (34.08)0.00 Smyth, Sean F.Initial Increase 1/1/2024 1,725.70 3,581.29 Jacobs, Adam - Dependent # 4 Benefits Cease 4/1/2024 (33.09)0.00 Jacobs, Jayson - Dependent # 5 Benefits Cease 4/1/2024 (33.09)0.00 Jacobs, Paul R.Initial Increase 1/1/2025 1,964.72 5,817.11 White, Jennifer M.Initial Increase 1/1/2035 2,766.86 7,378.29 1.None Notes Oak Brook Firefighters' Pension Fund Summary of Benefit Changes and Notes Effective as of January 1, 2020 Pensioner Page 3 62 of 71 © 2020 REIMER & DOBROVOLNY PC 1 Volume 18, Issue 1, January 2020 Legal and Legislative Update Governor Signs Bill Consolidating Investment Assets of Article 3 & 4 Pension Funds P.A. 101-0610 (Senate Bill 1300) On December 18, 2019, Governor Pritzker signed into law Public Act 101-0610 (previously Senate Bill 1300) creating two consolidated pension funds - the Police Officers’ Pension Investment Fund and the Firefighters’ Pension Investment Fund (“Consolidated Fund(s)”). The Act eliminates individual fund investment authority for all Article 3 and 4 funds. The Act requires all funds transfer assets to the Consolidated Funds no later than 30 months after the effective date of January 1, 2020. However, a number of procedural steps such as an audit of each Fund to be performed by the Consolidated Fund will have to be completed before any transfers can take place. Once the audit is certified, the local fund will be instructed to transfer its assets to the Consolidated Fund. Again, the Act contemplates this taking no more than 30 months but it could occur sooner. Each Consolidated Fund will have a 9-member board of trustees. During the transition period, the Governor will appoint transition board trustees with the advice and consent of the Senate. Thereafter, the permanent, elected board is to be seated no later than January 1, 2021. While the Act providesfor a nominationprocedure, themethod of election is not detailed. The permanent board of trustees for the Consolidated Funds will consist of 3 members who are mayors, CFOs, or other department heads of municipalities participating in the fund, 3 members who are active participants elected by the participants, and 1 member recommended by the Municipal League appointed by the Governor. I N T H I S I S S U E 1 Governor Signs Bill Consolidating Investment Assets of Article 3 & 4 Pension Funds 2 How Many Ways are There to Count to Thirty-five? 3 Ex-Spouse Awarded Interest in Disabled Firefighters’ Survivor’s Benefit 4 Third District Affirms Pension Board’s Denial of Intervention Petition and Grant of Line of Duty Benefits 5 Supreme Court Rules Permissive Service Upgrades Constitute Marital Property 6 Conflicts in Medical Records and Officer’s Lack of Credibility Doom Line of Duty Request 7 New Changes to the Revised Uniform Unclaimed Property Act 10 Reimer & Dobrovolny PC News 63 of 71 © 2020 REIMER & DOBROVOLNY PC 2 In addition, the Police Fund will have 2 beneficiary members elected by the beneficiaries whereas the Fire Fund will have 1 beneficiary member elected by the beneficiaries, and one member recommended by a statewide labor organization representing firefighters employed by at least 85 municipalities affiliated with AFFI and appointed by the Governor. The Consolidated Fund trustees will assume all fiduciary and statutory responsibility for the managementofpensionassetsandlocalboards will no longer possess investment authority. Notably, local boards retain the exclusive authority to adjudicate and award disability, retirement and survivor benefits and refunds. The Consolidated Funds have no authority to control, alter, modify, review or intervene in the proceedings of the local boards. With the reduction in local fund responsibility comes reduced training requirements. New local board trustee training is reduced from 32 hours to 16 hours with the elimination of accounting and actuarial training. Annual training is reduced from 16 hours to 8 hours. Previously certified trustees are required to complete 4 hours of special training regarding P.A. 101-0610 at the local fund’s expense. Lastly, P.A. 101-0610 changed the calculation of final salary and limitation of salary applicable to Tier II police and firefighters and improved Tier II survivor benefits. Given the massive quantity of changes implemented by P.A. 101-0610, we would encourage you to review our more detailed “Executive Summary” sent out via separate email in December for more detail. The Act is long on change and short on details as to how a number of these changes will be implemented. Stay tuned to see how this process is put into place once the Consolidate Funds seat their respective Boards of Trustees expected to take place later this month. How Many Ways Are There to Count to Thirty-five? DeJesus v. Policemen’s Annuity & Benefit Fd. of the City of Chicago, 2019 IL App (1st) 190486 Regular readers have no doubt heard of the “35 day” rule when it comes to administrative decisions. Found in the Administrative Review Law, the rule simply states any action to review a final decision of an administrative agency must be commencedwithin35 days. In practicetherulehas been harder to identify with several recent cases finding exceptions to the formerly ironclad 35 day rule. In this case, several disabled Chicago police officers brought suit alleging their disability benefits had been underpaid when the pension fund failed to include “duty availability allowance” in computing their salaries for disability pension purposes. In response to the proposed class action, the pension fund filed a motion to dismiss noting, among other things, that while plaintiffs had not been receiving the correct amount of disability benefits, the information used to compute their benefits was provided by the city which failed to include duty availability pay in all scenarios. The pension fund also noted plaintiffs had waited between9and20yearsto bringtheirunderpayment claims. The appellate court dismissed the claims against the pension fund finding plaintiffs had waited well beyondthe35 day timeperiod tobring their claims. But to reach this conclusion, the court had to first distinguish multiple recent cases finding exceptions to the 35 day rule. First, the appellate court addressed plaintiffs’ argument the “systematic errors” in payment of their benefits took this matter outside the administrative review law and it’s 35 day requirement. After detailed analysis of several recent cases of City of Countryside,Hooker, and Board of Education, the Court distilled the rule to state, “when pension or disability benefits are at issue, a party may challenge a pension board’s action without timely initiating administrative review under two limited 64 of 71 © 2020 REIMER & DOBROVOLNY PC 3 circumstances. The first circumstance is when the party challenging the miscalculation was not a party to the underlying administrative action,i.e., a city and not a pensioner, and the challenge is to a systematic miscalculation, not merely individual miscalculations.” In short, the court concluded the “systemic miscalculation” cases operating to take a matter out of the administrative review law have been limited to apply only to cases where the challenging party was not a party to the underlying administrative review proceeding. Since the parties here were the pension fund and disabled beneficiary members, the first exception to the 35 day rule did not apply. The second limited circumstance where an administrative decision may be challenged outside the 35 day time period was identified as “where the party challenging the systemic miscalculations can point to a specific rule, regulation, standard, or statement of policy from the pension board itself.” Here, the court found no such pension board rule or statement of policy finding duty availability pay not pensionable inasmuch as the fund simply relied on the salary information provided by the city which erroneously omitted duty availability pay in some circumstances. Finally,thecourtfoundthedeterminationsmadeon plaintiffs disability benefits to be final administrative decisions subject to the 35 day rule. Eachplaintiffhadreceivedaletterfromthepension fund’s executive director informing them they had beengrantedadutydisabilityawardof75%oftheir salary and providing the salary information used in making those determinations. As such, the court found, “Because ‘disputes between apensionboard and a pensioner’ are subject to the requirement of the Administrative Review Law, the 35-day clock to dispute the calculation of their benefit awards began when they received the letter.” The court therefore dismissed plaintiffs’ suit. This rather complicated exercise is a reminder to pension funds to ensure they are taking the proper steps in issuing final administrative decisions on all benefit determinations so as to properly trigger the 35 day statute of limitations. Ex-Spouse Awarded Interest in Disabled Firefighters’ Survivor’s Benefit In re: Marriage of Shulga, 2019 IL App (1st) 182028 In recent years, several cases have come down addressing the effect of a QILDRO on receipt of a disability benefit. While the Pension Code provides a QILDRO does not apply to receipt of a disability benefit, the recent case law has used the equitable powers of the court to compel payment to an alternate payee. This case found no reason to depart from that recent trend with the added wrinkle of application of a survivor’s benefit. The respondent in this case was an Evanston firefighter whodivorced his wife, Jodi,in2016. As part of their marital settlement agreement (MSA), Jodi was awarded 50% of the marital portion of her former husband’s pension plan via entry of a QILDRO. A QILDRO was entered directing the pension fund to pay 50% of the firefighter’s “monthly retirement benefit” accruing from the date of marriage to the date of divorce. Five months after divorcing Jodi, the firefighter married Mary in August 2016. In 2017, the Firefighters’ Pension Board awarded the firefighter a line of duty disability pension benefit. Unfortunately,thefirefighterpassedawaythesame day the pension board made its award of line of duty disability benefits. Despite having been married only nine months, Mary applied to the pension fund for survivor’s benefits. The fund paid Mary 100% of the benefits due while former spouse Jodi received nothing. Jodi filed a lawsuit against Mary for unjust enrichment and sought imposition of a constructive trust. The pension fund was not involved in this litigation. In finding for former spouse Jodi, the appellate court relied on case law interpreting pension benefits generally in divorce. First, the court addressed the issue of whether the MSA could 65 of 71 © 2020 REIMER & DOBROVOLNY PC 4 apply to disability benefits. Noting the MSA was silent on the issue of disability benefits, the court relied on case law holding that when the MSA does not address both regular retirement and disability benefits specifically, a court may interpret in one of two ways: First, the MSA was intended by the parties to apply to any benefit received under a pension plan or, second as relating only to regular, age-related retirement benefits. The appellate court reasoned the same case provided that if the member is eligible for regular retirement but receiving disability instead, the MSA should be interpreted to mean the ex-spouse should receive the percentage attributable to normal retirement benefits whether paid as disability or regular retirement. Applying this reasoning to the facts at hand, the court noted the firefighter was eligible for regular retirement when he was awarded a disability pension benefit. As such, Jodi should have been entitled to 50% of the amount the firefighter would have been entitled to as regular retirement. The court’s holding raises a number of questions not addressed possibly because the pension fund was not a party. While the court did address its reasoning for finding disability benefits divisible under the MSA, it did not touch on the QILDRO statutory provision holding disability benefits are not subject to QILDRO’s. Consistent with other recent cases on this issue, the trend seems to be that while the pension fund cannot divide a disability benefit via QILDRO, the member can be forced to pay the alternate payee directly. Second, the court did not address the issue of whether Jodi was a qualifying surviving spouse under Article 4 of the Pension Code inasmuch as she was not married to the member at the time of his death which would generally make her ineligible for survivor’s benefits. While not at issue in this case, it should also be noted that had Mary married the Firefighter after his retirement, pursuant to Section 4-115 of the Pension Code Mary would have needed to have been married to the firefighter for at least 12 months. In short, this case raises more questions than it answers. Fortunately, most of these issues must be resolved between the divorcing parties without the involvement of the pension fund. However, there is no question this opinion leaves funds, members, andalternatepayeesquestioningtheprocedurethey are to follow in these circumstances. Third District Affirms Pension Board’s Denial of Intervention Petition and Grant of Line of Duty Benefits City of Peoria v. Firefighters’ Pension Fd. of the City of Peoria, et al., 2019 IL App (3d) 190069 On appeal, the City presented two issues for review: (1) the City requested reversal of the Pension Board’s decision to deny its petition to intervene; and (2) the City contended the Pension Board erred by granting Brooks a line of duty disabilitypension. ThePension Boardprevailedon both issues. Firefighter Brooks (“Brooks”) applied for and received a line of duty disability pension. The City of Peoria (“City”) was denied permission to intervene in the Pension Board’s proceedings. The City filed a complaint for administrative review in the circuit court challenging the Board’s decisions. The circuit court affirmed the decisions of the Pension Board. The City filed a timely appeal. By way of background, Brooks began working as a Peoria Firefighter in 1991. On July 16, 2015, Brooks participated in a “collapsed house” exercise at the City’s Fire Training Academy. The exercise involved “diminished visibility, confined spaces, scattered debris, low profile techniques, and other obstacles.” Ultimately,Brookswasextricated from the training scenario as a result of injuries to his right knee. Following his submission of a line of duty pension application, Brooks was evaluated by three independent physicians. All three physicians unanimously concluded Brooks was disabled. 66 of 71 © 2020 REIMER & DOBROVOLNY PC 5 However, only a sole physician concluded Brooks’ disability was caused, in part, by the training exercise. Prior to the commencement of Brooks’ disability hearing, the City filed a petition to intervene in the proceedings for the purpose of submitting evidence and cross-examining Brooks. The City further argued it had an interest in the Pension Board’s proceedings because of a potential Public Safety Employee Benefit Act claim (“PSEBA”). In conducting a hearing to resolve the City’s petition, the City conceded it presented the Board with all evidence and “did not anticipate calling any additional witnesses.” Thus, the City had no additional evidence to present. Moreover, the City declined to make an offer of proof as to what the Board may glean during cross-examination. As such, the Pension Board denied the City’s petition to intervene. On review, the appellate court acknowledged the City had, at least, a broad interest in overseeing the proper expenditure of pension funds. However, both Brooks and the Pension Board admitted Brooks was ineligible for PSEBA benefits. Therefore, the Court held, “the threat of potential liability under [PSEBA], when combined with the broad interest in contributing to and ensuring the proper expenditure of pension funds, did not warrant the City’s intervention.” Thus, the Pension Board’s denial was not an abuse of discretion in this respect. Next, the Court considered the City’s interest in developing a complete and accurate evidentiary record. The Court noted the City had no additional evidence or witnesses to provide to the Pension Board. Interestingly, “the City declined to make an offer of proof on any additional information that was necessary for an accurate evidentiary record.” Further, “even if the Pension Board allowed the City to intervene, the scope of any cross- examination of Brooks would not have been unlimited.” Accordingly, the Court held the Pension Board did not abuse its discretion and the City’s interests were not adversely impacted by the denials of the Pension Board. Turning to Brooks’ disability claim, the Court affirmed the Pension Board’s grant of a line of duty disability benefit. The Court concluded, “the Pension Board found Brooks was entitled to a line of duty disability pension because he was currently disabled as a result of cumulative injuries incurred in or resulting from the performance of an act(s) of duty. [T]he cumulative effects of [Brooks’] performance of firefighters’ duties culminat[ed] in the injury on July 16, 2015. These findings are supported by Brook’s testimony and both Dr. Alpert’s initial and supplemental opinions.” (Internal quotation marks omitted). Appropriately, the Court upheld the conclusion of the Pension Board noting, “we cannot say the opposite conclusion than that reached by the Pension Board was clearly evident.” (Internal quotation marks omitted). Instead, “the record contains sufficient evidence to support the Pension Board’s decision.” The judgment of the Pension Board was affirmed. Supreme Court Rules Permissive Service Upgrades Constitute Marital Property In Re: Marriage of Zamudio, 2019 IL 124676 One of the divorcing parties in this case was an Illinois State Police Officer participating in the Illinois State Retirement System. On two separate occasions during the marriage, the State trooper purchased military service as creditable service for military time served prior to his marriage. The parties disputeoverwhetherthis permissiveservice credit should be considered marital or non-marital property made it all the way to the Illinois Supreme Court. The permissive service purchase resulted in anincreaseof$1,363.33permonthforthemember. Based on a 50% division of marital assets, the amount at issue was $681.67 per month. The member argued the permissive service credit should not be considered marital property inasmuch as it represented his military service for atimeperiod priortothe marriage. Conversely, the 67 of 71 © 2020 REIMER & DOBROVOLNY PC 6 alternate payee argued the service upgrade only occurred once the purchase was completed which occurred during the marriage with marital assets. In finding the military service purchased a marital asset subject to division, the Supreme Court examined the nature of military service purchases under Article 14 of the Pension Code. (For the purposes of this analysis, military service is purchased in a like manner for Article 3 and 4 participants). The Court noted Section 14-104(j) required two steps for establishing service credit for prior military service. First, the member must have up to four years of prior active duty military service without a dishonorable discharge. Second, the member must make the statutorily prescribed monetary contributions to the pension fund. Both steps must be completed for the member to receive credit for the military service. Applying the statue to the facts in this case, the Supreme Court found the military service was not “acquired” under the terms of the Dissolution of Marriage Act until the member completed the purchase of service. In short, the member’s prior militaryservicedidnotentitlehimtoanyadditional credit until suchtimeashecompleted purchase. As such, it was service acquired during the marriage and subject to division under the Act. Conflicts in Medical Records and Officer’s Lack of Credibility Doom Line of Duty Request Olson v. Lombard Police Pension Fund et al.,2019 IL App (2d) 190113–U A 29 year veteran of the Lombard Police Department sought a line of duty disability pension based upon an injury he alleged occurred on September18, 2013, whilerespondingto ascene of a residential burglary. While attempting to apprehend an offender, the officer claimed he sustained injuries to his low back and his left leg. Prior to this incident, the officer had three occurrences of back pain both on and off duty. In June 2013, months prior to the incident, the officer sought treatment at a local hospital and the records indicated he had been dealing with back pain intermittently for 15 years. Unfortunately for the officer, neither the ambulance reports or the emergency room records disclosed that the officer complained about any back pain, and the only reference was to pain in the officer’s leg and calf. In addition there were no reports or records of back pain from any of the physicians who treated or evaluated the officer shortly after the incident. Although the officer attended 37 physical therapy sessions, none of those sessions were for lower back issues. The officer also denied prior back problems to five doctorsthat eithertreated orevaluated him afterthe incident. Besides the multiple physicians that treated or evaluated the officer following the injury, the pension board also had the officer evaluated by three pension board physicians, Dr. Samo, Dr. Siemionow, and Dr. Stanley. Dr. Samo opined that the various inconsistencies in the officer’s history and physical findings made the officer’s subjective complaints unreliable. He opined that if the officer was disabled by his pain, his unsuccessful back surgery was the likely cause. Dr. Samo noted the initial injury was a hamstring strain that would not have been related to any of the officer’s back problems. Most importantly, Dr. Samo noted that the officer told him his back pain started two months after the incident, although he had told multiple other physicians that he experienced back pain immediately after the incident. Dr. Siemionow concluded that the officer was disabled as a result of severe back pain in his left lower extremity, but did not render an opinion on causation. Dr. Stanley diagnosed the officer with chronic low back pain, and concluded that he could not return to full unrestricted duty. Dr. Stanley could not reconcile the discrepancy from the records he was provided, and could not provide a definitive causation opinion. Dr. Stanley agreed with another physician that treated the officer following injury, that if the officer had sustained a lumbarsprain,thesubsequentfusionsurgerywould be for low back arthritis and unrelated to the work event. 68 of 71 © 2020 REIMER & DOBROVOLNY PC 7 At the hearing before the pension board, the officer testified, and was caught in numerous discrepancies. The pension board denied the officer’s line of duty disability application, but awarded non-duty disability benefits. In its written Decision and Order the board concluded that the officer had a pre-existing history of low back complaints and discomfort, but that his lower back issues were neither caused nor exacerbated by an act of duty as required under §5/3–114.1 of the Pension Code. Among the reasons articulated by the board for its denial were the officer’s failure to report his back pain immediately following the incident, and the officer’s lack of credibility. The officer sought administrative review and the trial court affirmed the decision of the pension board. An appeal followed. The only issue on appeal was whether the officer’s lower back condition, that was the basis of his permanent disability, was caused by or aggravated by an act of duty? The court recognized that this was a factual issue and applied the manifest weight standard, the most deferential of the applicable standards. Accordingly, all that was necessary to support the board’s finding was competent evidence in the administrative record. In this case there was evidence in the record that the officer had apre-existingdegenerativecondition,buttherewas no evidence that condition was made worse by the alleged work incident. The officer’s medical records demonstrated that his condition was symptomatic a mere three months prior to the incident. Several of the independent medical examiners opined that the officer’s condition was more consistent with symptomatic, chronic back pain. The court concluded that the board was free to reject the officer’s causal connection theory as lacking evidentiary support given that just three months before the incident the officer’s back was so painful that it necessitated an emergency room visit, and/or find any evidence demonstrating that the officer experienced any back pain until months after the incident. The court also affirmed the pension board’s finding that the officer lacked credibility. The decision of the Lombard Police Pension Board was affirmed in this Rule 23 Opinion. New Changes to the Revised Uniform Unclaimed Property Act (765 Ill. Comp. Stat. Ann. §§ 1026/15-1-1506: Addition of sections 15-1505 and 15-1506 P.A. 101-0546 The Legislature has passed SB1264 on August 23, 2019. The bill was sent to the governor and signed into law. The law is scheduled to go into effect on Jan. 1, 2020 and applies in part retroactively to January 1, 2018. According to the General Assembly website, the bill amends the Revised Uniform Unclaimed Property Act. The new additions to the law, Section 15-1505 and Section 15-1506, amends the Revised Uniform Unclaimed Property Act by providing guidance for Article 3 (Police) and Article 4 (Fire) Pension Boards in the event pension benefits are unclaimed or abandoned. The first addition, Section 15-1505 (b)requires the retirement system, pension fund, or investment board to report: i.the name of the owner, and the names of any beneficiaries, ii.the last known address (if known), iii.the Social Security number or taxpayer identification number (if known or readily ascertainable), iv.and the unclaimed or abandoned dollar amount to the Administrator of the Unclaimed Property Act (Illinois State Treasurer) prior to November 1 of each year. The report required before November 1st of each year must entail the 12 months preceding July 1st of the same year as cited in § 15-403 of the Act. To comply, beginning no later than November 1, 2020, and each November 1 thereafter, an Article 3 or Article 4 pension fund that is holding an 69 of 71 © 2020 REIMER & DOBROVOLNY PC 8 unclaimed or abandoned benefit because the recipient is unable to be located, must report the information to the Illinois State Treasurer. Section (d) provides that an unclaimed or abandoned annuity, pension, or benefit fund held in afiduciarycapacityshouldnotbeturnedovertothe State Treasurer. The second addition, Section 15-1506, also applies to Article 3 and Article 4 funds and requires minimum due diligence standards for searching for the apparent owner of unclaimed or abandoned benefits. The minimum due diligence provides not less than 90 days before filing the annual report to the state treasurer, a fund must attempt to contact the apparent owner of the benefit using, in any order, first class mail, telephone, or electronic mail. If the apparent owner does not respond, or otherwise indicate interest in the property, then the fund shall send a notice, by certified mail, to the apparent owner not less than 60 days prior to filing the annual treasurer’s report. Further, each Pension Board is mandated to request any current or former employer to search their records for more current contact information for an apparent owner, as well as more current contact information for any beneficiaries. Unless prohibited by other state law, the current or former employer is required to produce any information that would allow the fund to determine the current address of an apparent owner. The fund must attempt to contact any beneficiaries using the same routine methods noted above if the fund has the beneficiaries’ contact information. The new law requires Pension Boards to make reasonable use of free Internet search tools such as, public record databases, obituaries, and even social media, to search for an apparent owner. If the benefit is in excess of $1,000, the fund must undertake additional steps, including the use of Internet search tools, commercial locator services, credit reporting agencies, information brokers, investigation databases, and analogous services that may require fees. If the benefit is less than $50, the Pension Board is not required to engage in due diligence, or send mail to an address that it knows to be invalid. Section (e) requires a pension fund to enter into an interagency agreement with the State Treasurer regarding the required implementation of the due diligence requirements. Section (f) recognizes that if the United States DepartmentofLaborissuesguidanceorregulations that conflict with the state’s due diligence requirements, the fund shall comply with the federal guidance or regulations. Suggested Agenda Items for April (or 2nd Quarter) Review statutory asset allocation requirements and portfolio allocation prior to close of fiscal year. Election of active/retired/disabled Trustees. Review and/or modification of Board’s investment policy. Authorize preparation of annual Department of Insurance Report. Authorize payment of annual Department of Insurance Compliance Fee. Status of independent audit report. (Due within 6 months of close of fiscal year). Review and/or modification of Board’s Administrative Rules and Regulations. Annual filing of statement of economic interest statements for each Trustee. 70 of 71 © 2020 REIMER & DOBROVOLNY PC 9 REIMER & DOBROVOLNY PC NEWS October 1-4, 2019, RD partners, Rick Reimer and Brian LaBardi, presented at the IPPFA MidAmerican Pension Conference in Lake Geneva, Wisconsin. October 21-22, 24, 2019, RD partner, Rick Reimer, taught at the IPPFA certified trustee training in Hoffman Estates. November 1, 2019, RD partner, Brian LaBardi, attended and presented at the IPFA Fall Seminar in Addison. November 14, 2019, RD partner, Rick Reimer, taught at the IPPFA certified trustee training at the NIU campus in Naperville. January – May 2020, RD attorney, Mark McQueary, will attend Northwestern University’s School of Police Staff and Command. Legal and Legislative Update Volume 18, Issue 1, January 2020 This publication constitutes advertising material. Information contained herein should not be considered legal advice. Legal and Legislative Update is published periodically. Questions may be directed to: REIMER & DOBROVOLNY PC A Public Safety Law Firm 15 Spinning Wheel Road, Suite 310, Hinsdale, IL 60521 (630) 654-9547 Fax (630) 654-9676 www.rdlaborlawpc.com Unauthorized reproduction prohibited. All rights reserved. 71 of 71