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Agenda Packet - 10/22/2020 - 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 in-person and via teleconference in accordance with PA 101-0640 on Thursday, October 22, 2020 at 8:00 a.m. 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: In accordance with Public Act 101-0640, this meeting will be conducted at the location indicated above and via teleconference. Members of the public and participants can monitor the meeting by joining the conference call as follows: Call the conference number: (773) 250-5099 Enter the participant code: 637148 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. July 31, 2020 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 10. Applications for Membership/Withdrawals from the Fund a. Deceased Pensioner – Anthony Stevens 11. Applications for Retirement/Disability Benefits 12. Old Business a. Review/Approve – Actuarial Valuation and Municipal Contribution Request b. Review/Adopt – Municipal Compliance Report 13. New Business a. Establish 2021 Board Meeting Dates 14. Attorney’s Report – Reimer, Dobrovolny & Labardi PC a. Annual Independent Medical Examination – Jennifer White b. Status Update – Pension Fund Consolidation c. Legal Updates 15. Closed Session, if needed 16. Adjournment 1 of 77 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 JULY 31, 2020 A regular meeting of the Oak Brook Firefighters’ Pension Fund Board of Trustees was held on Friday, July 31, 2020 at 9:00 a.m. in the West Wing Conference Room of the Butler Government Center, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523, pursuant to notice. CALL TO ORDER: President Fagan called the meeting to order at 9:00 a.m. ROLL CALL: PRESENT: President John Fagan, Trustees Jim Bodony, Timothy Schlindwein (via teleconference) and Kevin Tan ABSENT: Secretary Gino Picciola ALSO PRESENT: Finance Director Jason Paprocki and Village Clerk Charlotte Pruss, Village of Oak Brook; Tom Sawyer, Sawyer Falduto Asset Management, LLC; Jennifer Flores, Lauterbach & Amen, LLP (L&A); Retired Member Mark Fleishman, Oak Brook Firefighters’ Pension Fund Trustee Schlindwein attended the meeting via teleconference in accordance with the Open Meetings Act due to the emergency disaster declaration issued by Governor Pritzker. TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Tan, Bodony and Schlindwein attended a one-hour Trustee training education course from 8:00 a.m. to 9:00 a.m. presented by Sawyer Falduto Asset Management. PUBLIC COMMENT: Retired member Mark Fleishman commented regarding Pension Fund consolidation and provided his opinion on the Fund’s participation in legal action against the State of Illinois. SWEARING IN OF NEW TRUSTEE: Village Clerk Charlotte Pruss swore in Kevin Tan to serve on the Oak Brook Firefighters’ Pension Fund Board as an appointed Trustee. This was followed by a subdued celebration of all attendees. APPROVAL OF MEETING MINUTES: April 28, 2020 Regular Meeting Minutes: The Board reviewed the April 28, 2020 regular meeting minutes. A motion was made by Trustee Fagan and seconded by Trustee Tan to approve the April 28, 2020 regular meeting minutes as written. Motion carried unanimously by voice vote. Ms. Pruss left the meeting at 9:08 a.m. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly Investment Performance Report: Mr. Sawyer presented the Quarterly Investment Performance Report for the period ending June 30, 2020. As of June 30, 2020, the second quarter net return is 13.17% versus the first quarter account benchmark of 13.48%. The investment return for the quarter is $3,595,698 for an ending market value of $30,516,158. The current asset allocation is as follows: fixed income at 37%; equities at 62.3%; and cash equivalents at 0.7%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. A motion was made by Trustee Bodony and seconded by Trustee Tan to accept the Quarterly 2 of 77 Oak Brook Firefighters’ Pension Fund Meeting Minutes – July 31, 2020 Page 2 of 3 Investment Performance Report as presented. Motion carried unanimously by voice vote. Review/Update Investment Policy: The Board reviewed the current investment policy and determined that no changes are required at this time. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the six-month period ended June 30, 2020 prepared by L&A. As of June 30, 2020, the net position held in trust for pension benefits is $30,701,551.69 for a change in position of ($194,683.90). The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. A motion was made by Trustee Fagan and seconded by Trustee Tan to accept the Monthly Financial Report as presented. Motion carried unanimously by voice vote. Presentation and Approval of Bills: The Board reviewed the Vendor Check Report for the period April 1, 2020 through June 30, 2020, for total disbursements in the amount of $122,475.51. A motion was made by Trustee Fagan and seconded by Trustee Bodony to approve the disbursements shown on the Vendor Check Report in the amount of $122,475.51. Motion carried by roll call vote. AYES: Trustees Fagan, Bodony, Schlindwein and Tan NAYS: None ABSENT: Trustee Picciola 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: The Board discussed upcoming training opportunities. A motion was made by Trustee Fagan and seconded by Trustee Bodony to approve reasonable registration fees for any Trustees interested in attending any of the training opportunities. Motion carried by roll call vote. AYES: Trustees Fagan, Bodony, Schlindwein and Tan NAYS: None ABSENT: Trustee Picciola COMMUNICATIONS AND REPORTS: Active Member File Maintenance: The Board discussed active member file maintenance and requested that L&A forgo the process for 2020. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership – Seth Bowlan: The Board reviewed the Application for Membership submitted by Seth Bowlan. A motion was made by Trustee Fagan and seconded by Trustee Tan to accept Seth Bowlan into the Oak Brook Firefighters’ Pension Fund effective April 6, 2020, as a Tier II participant. Motion carried by roll call vote. AYES: Trustees Fagan, Bodony, Schlindwein and Tan NAYS: None ABSENT: Trustee Picciola APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: There were no applications for retirement or disability benefits. OLD BUSINESS: IDOI Annual Statement: The Board noted that the finalized report was filed prior to the June 30, 2020 deadline. NEW BUSINESS: Review/Approve Actuarial Valuation and Municipal Contribution Request: This item was tabled until the next regular meeting. Review/Adopt Municipal Compliance Report: This item was tabled until the next regular meeting. 3 of 77 Oak Brook Firefighters’ Pension Fund Meeting Minutes – July 31, 2020 Page 3 of 3 Board Officer Elections – President and Secretary: The Board discussed Board Officer Elections and nominated the slate of Officers as follows: John Fagan as President and Gino Picciola as Secretary. A motion was made by Trustee Bodony and seconded by Trustee Tan to elect the slate of Officers as stated. Motion carried unanimously by voice vote. FOIA Officer and OMA Designee – The Board discussed maintaining Trustee Fagan as the primary FOIA Officer and OMA Designee and Trustee Picciola as the secondary FOIA Officer and OMA Designee. A motion was made by Trustee Fagan and seconded by Trustee Tan to maintain Trustee Fagan as the primary FOIA Officer and OMA Designee. Motion carried unanimously by voice vote. A motion was made by Trustee Fagan and seconded by Trustee Bodony to maintain Trustee Picciola as the secondary FOIA Officer and OMA Designee. Motion carried unanimously by voice vote. ATTORNEY’S REPORT – REIMER & DOBROVOLNY PC: Annual Independent Medical Examination – Jennifer White: The Board discussed the annual independent medical examination for Jennifer White to recertify her disability status. Trustee Bodony will contact Attorney Reimer to request that correspondence be sent to Jennifer White regarding her IME. Further discussion will be held at the next regular meeting. 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 Tan to adjourn the meeting at 9:52 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for October 22, 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 77 Quarterly Investment Performance Report September 30, 2020 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 www.sawyerfalduto.com SFAM Page 1 of 22 5 of 77 Oak Brook Firefighters' Pension Fund September 30, 2020 INVESTMENT POLICY AND ASSET ALLOCATION GUIDELINES Portfolio Allocation Target Range Maximum Cash / Short Term 0% 0 - 10% 100% Fixed Income 40% 35 - 45% 100% Equity 60% 55 - 65% Per IL Statute Equity Allocation Target Range US Large Cap Stocks 70% 40 - 100% US Small Cap Stocks 20% 0 - 40% Foreign Securities 10% 0 - 20% Equity Benchmark Benchmark Weight S&P 500 Index 70% Russell 2000 Stock Index 20% Morgan Stanley Capital International EAFE 10% Blended Equity Benchmark - Total 100% Fixed Income Allocation Minimum Range Maximum US 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% Fixed Income Benchmark Benchmark Weight Barclays US Treasury Intermediate 15% Barclays US Agency 7-10 Year 55% Barclays Taxable Municipal Intermediate 15% Barclays Corporate Intermediate 15% Blended Fixed Income Benchmark - Total 100% Cash / Short Term Benchmark Weight Morningstar Manager Taxable Money Mkt 100% SFAM Page 2 of 22 6 of 77 Oak Brook Firefighters' Pension Fund September 30, 2020 CASH FLOW AND PERFORMANCE REVIEW Long-Term Performance Periods Ending 9/30/2020 1 Year 3 Years 5 Years 10 Years Since Inception 6/30/2016 Total Account Return 11.12% 7.76% % % 9.01% Account Benchmark 9.92% 7.90% % % 8.80% Equity Return 12.29% 8.70% % % 12.04% Blended Equity Benchmark 10.74% 9.05% % % 12.13% Fixed Income Return 7.56% 5.48% % % 3.76% Blended Fixed Benchmark 7.11% 5.19% % % 3.19% 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 3 2020 Year-to-Date Beginning Market Value $30,516,158 $30,897,661 Contributions / Additions 644,434 1,667,368 Distributions / Expenses -783,042 -2,325,030 Adjusted Beginning Market Value 30,377,550 30,239,999 Ending Market Value $32,014,507 $32,014,507 Investment Return $1,636,957 $1,774,508 Performance Review Quarter 1 2020 Quarter 2 2020 Quarter 3 2020 Quarter 4 2020 Year-to-Date Total Account Return (Gross) -11.25% 13.22% 5.34% % 5.85% Total Account Return (Net) -11.30% 13.17% 5.29% % 5.69% Account Benchmark -12.25% 13.48% 4.99% % 4.55% Equity Return -21.41% 21.55% 8.30% % 3.46% Blended Equity Benchmark -22.17% 21.00% 7.71% % 1.44% 70% S&P 500 -19.60% 20.54% 8.93% % 5.57% 20% Russell 2000 -30.62% 25.42% 4.93% % -8.69% 10% MSCI EAFE -22.83% 14.88% 4.80% % -7.09% Fixed Income Return 5.05% 2.01% 0.72% % 7.94% Blended Fixed Benchmark 4.13% 2.79% 0.85% % 7.94% Cash Equivalent Return 0.22% 0.00% 0.00% % 0.23% M-Star Taxable MMF Index 0.26% 0.03% 0.01% % 0.30% SFAM Page 3 of 22 7 of 77 Portfolio Value vs. Cumulative Net Investment From 04/03/2016 to 09/30/2020 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 12/31/2019 03/31/2020 06/30/2020 09/30/2020Period 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 03/31/2020 -280,483 21,755,875 27,143,581 5,387,706 06/30/2020 -209,549 21,546,326 30,516,158 8,969,833 09/30/2020 -123,350 21,422,976 32,014,507 10,591,531 SFAM Page 4 of 22 8 of 77 Quarterly Market Commentary – September 30, 2020 September 30, 2020 Economic Overview 3Q 2020 Key Observations • U.S. economic activity shows signs of recovery based on future optimism • Equity markets posted strong returns, but remain below the peak levels from early September • The Federal Reserve has extended their forecast for low interest rates through 2023 • Additional stimulus measures continue to be debated by both political parties • Headline risks include Covid-19, presidential election and China trade relations Key Indicators Gross Domestic Product is the value of the goods and services produced in the United States. The growth rate of GDP is the most popular indicator of the nation's overall economic health. • The U.S. economy experienced the largest drop ever in GDP activity during 2Q 2020 • The 3Q 2020 GDP rebound is expected to be the largest increase on record -40.0% -20.0% 0.0% 20.0% 40.0% 1Q 2018 3Q 2018 1Q 2019 3Q 2019 1Q 2020 3Q 2020 U.S. Gross Domestic Product Quarter-Over-Quarter Change 70 100 130 160 Jul-19 Dec-19 May-20 Oct-20 Consumer Confidence 35% Market Estimate ✓Consumers are slowly regaining confidence ✓Future employment gains will be challenging 2.00% 6.00% 10.00% 14.00% Jul-19 Dec-19 May-20 Oct-20 Unemployment Rate SFAM Page 5 of 22 9 of 77 Quarterly Market Commentary – September 30, 2020 September 30, 2020 Equity Overview Market Performance • Equity indices continued to rebound and posted positive 3Q returns although below the highest levels achieved earlier in the quarter • Accommodative Federal Reserve policies continue to support the equity markets in the form of low interest rates and an ongoing willingness to provide liquidity into the financial markets • Market volatility remains elevated as the timing of an economic recovery is uncertain • International equities posted positive quarterly returns despite the ongoing Covid-19 concerns abroad Equity Performance Overview U.S. Equity Size & Style Returns – September 30, 2020 Quarter -To-Date Year-To-Date 5.59% 9.47% 13.22% Large -11.58% 6.39% 24.33% 6.40% 7.46% 9.37% Medium -12.84% -2.34% 13.93% 2.56% 4.93% 7.16% Small -21.55% -8.70% 3.87% Value Core Growth Value Core Growth Large capitalization growth stocks continue to lead the way for U.S. domestic equity performance YTD Examples – Zoom Video (WFH) +591%, Tesla (technology) +413%, Peloton (home fitness) +249% Small capitalization value stocks continue a trend of multi-year underperformance YTD Examples: Hertz (rental cars) -93%, Transocean (offshore drilling) -88%, Express (retail) -87%, Historically, small capitalization stocks have provided the best returns over long periods of time while also demonstrating the highest levels of volatility. Limited economic growth in recent years has provided a challenging environment for small capitalization stocks. Sawyer Falduto Asset Management equity portfolios currently have a bias for large capitalization growth stocks which have provided excess positive returns. The equity allocations are consistently evaluated based on economic conditions and forecasts. Equities – Looking Ahead • Anticipate increased short-term volatility related to November elections – Presidential and Congress o Contested election result could drive temporary dip in equity markets • Covid-19 developments will continue to shape growing market optimism • Maintain a diversified equity portfolio to ensure exposure to all segments of the market o Interest in value stocks is increasing as growth stock valuations are stretched o Post-election policy changes are difficult to forecast SFAM Page 6 of 22 10 of 77 Quarterly Market Commentary – September 30, 2020 September 30, 2020 Fixed Income Overview Market Observations • There were minimal movements in U.S. Treasury yields as the curve steepened modestly during 3Q • Corporate credit spreads decreased marginally as the markets anticipate less risk • U.S. Treasury yields are forecast to remain near historically low levels Fixed Income Yield Overview Positive bond performance over the last two years has been driven by falling interest rates, but the potential for additional returns appears limited as yields have been near historic lows in recent quarters. Fixed Income – Looking Ahead • Federal Reserve monetary policy and low inflation expectations will serve to limit yield increases • Near term fixed income returns will be driven more by interest payments and less by yield changes • Foreign investors continue to seek the safe-haven of U.S. government securities • An overall increase in economic activity will eventually provide a catalyst for higher interest rates 0.0% 0.5% 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 12/31/2019 9/30/2020 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% $85 $90 $95 $100 $105 $110 $115 $120 4Q 2017 2Q 2018 4Q 2018 2Q 2019 4Q 2019 2Q 2020 Bond YieldBond PriceU.S. Government Bond Price & Yield Relationship Price Yield SFAM Page 7 of 22 11 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Portfolio Allocation Equities: 60.7% Fixed Income: 38.7% Cash Equivalent: 0.6% Current Current Annual Weight Description Symbol Quantity Value Yield Income Equities Large Cap Mutual Fund 2. 8%AQR Large Cap Defensive QUERX 36,477. 083 907,185. 05 1. 1%10,031. 20 4. 6%Hartford Core Equity Fund Y HGIYX 39,215. 4 1,462,342. 27 0. 8%11,764. 62 5. 8%Pioneer Equity Income PYEQX 57,282. 481 1,846,787. 19 1. 0%18,330. 40 15. 0%T Rowe Price Growth Stock PRUFX 53,365. 185 4,792,727. 26 0. 3%13,874. 94 14. 8%Vanguard 500 Index Fund VFIAX 15,269. 475 4,737,965. 40 1. 7%80,036. 48 42. 9%13,747,007. 17 1. 0%134,037. 64 Exchange Traded Fund 0. 2%Vanguard S&P 500 ETF VOO 184 56,607. 60 1. 9%1,054. 91 43. 1%13,803,614. 77 1. 0%135,092. 56 Mid Cap Mutual Fund 1. 6%Victory Sycamore VEVIX 14,651. 845 519,554. 42 1. 5%7,608. 65 Small Cap Mutual Fund 1. 8%Goldman Sachs Small Cap GCSIX 23,604. 32 562,726. 99 0. 6%3,526. 48 4. 1%T Rowe Price QM US Small-Cap TQAIX 32,632. 22 1,316,057. 43 0. 0%0. 00 4. 2%TIAA Cref Small Cap Index TISBX 70,915. 21 1,350,934. 75 1. 5%20,423. 59 10. 1%3,229,719. 17 0. 7%23,950. 08 International Mutual Fund 0. 9%First Eagle Overseas SGOIX 11,549. 103 275,561. 60 2. 4%6,571. 43 1. 4%Goldman Sachs International GCIIX 35,901. 632 441,231. 06 2. 6%11,456. 21 SFAM Page 8 of 22 12 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Equities International Mutual Fund 1. 5%MFS International Growth I MQGIX 11,096. 34 477,142. 62 0. 9%4,132. 94 1. 0%Oppenheimer Developing Markets ODVIX 6,782. 18 305,672. 85 0. 7%2,149. 27 4. 7%1,499,608. 13 1. 6%24,309. 86 Real Estate Mutual Fund 1. 2%Cohen & Steers Realty CSRIX 9,768. 364 392,883. 60 2. 6%10,080. 93 60. 7%19,445,380. 09 1. 0%201,042. 08 Fixed Income Cash Equivalent Certificate of Deposit 0. 7%State Bank of India 856283N93 225,000 230,213. 70 1. 0%2,250. 00 07/10/2025 1.00% Accrued Income 511. 64 Taxable Bonds U. S. Treasury 0. 6%US Treas Note 9128285M8 150,000 180,656. 25 2. 6%4,687. 50 11/15/2028 3.125% Accrued Income 1,770. 55 0. 5%US Treas Note 912828M80 150,000 156,023. 43 1. 9%3,000. 00 11/30/2022 2.00% Accrued Income 1,008. 20 0. 3%US Treas Note 912828N30 100,000 104,437. 50 2. 0%2,125. 00 12/31/2022 2.125% Accrued Income 537. 02 0. 5%US Treas Note 912828R36 150,000 160,687. 50 1. 5%2,437. 50 05/15/2026 1.625% Accrued Income 920. 69 0. 3%US Treas Note 912828T91 100,000 104,484. 37 1. 6%1,625. 00 10/31/2023 1.625% Accrued Income 680. 03 0. 3%US Treas Note 912828WC0 100,000 100,125. 00 1. 7%1,750. 00 10/31/2020 1.75% Accrued Income 732. 34 0. 5%US Treas Note 912828WE6 150,000 162,046. 88 2. 5%4,125. 00 11/15/2023 2.75% Accrued Income 1,558. 08 0. 4%US Treas Note 912828X88 100,000 112,718. 75 2. 1%2,375. 00 05/15/2027 2.375% Accrued Income 897. 08 0. 3%US Treas Note 912828YQ7 100,000 107,453. 12 1. 5%1,625. 00 10/31/2026 1.625% Accrued Income 680. 03 3. 7%1,197,416. 82 2. 0%23,750. 00 U.S. Government Agency 0. 3%Fed Farm Cr Bk 3133EA6C7 100,000 110,260. 70 2. 3%2,500. 00 10/24/2025 2.50% Accrued Income 1,090. 28 SFAM Page 9 of 22 13 of 77 Portfolio Statement As of 09/30/2020 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 3133EAE61 49,000 53,452. 58 2. 1%1,141. 70 08/01/2025 2.33% Accrued Income 190. 28 0. 7%Fed Farm Cr Bk 3133ECB60 200,000 224,283. 80 2. 3%5,140. 00 12/24/2026 2.57% Accrued Income 1,384. 94 0. 6%Fed Farm Cr Bk 3133ECJF2 200,000 201,539. 40 1. 8%3,540. 00 03/18/2021 1.77% Accrued Income 127. 83 0. 4%Fed Farm Cr Bk 3133ECN83 125,000 136,003. 63 2. 2%2,962. 50 05/01/2025 2.37% Accrued Income 1,234. 38 0. 2%Fed Farm Cr Bk 3133ED6M9 68,000 74,085. 12 2. 9%2,155. 60 11/06/2023 3.17% Accrued Income 868. 23 1. 0%Fed Farm Cr Bk 3133EEF47 300,000 330,093. 90 2. 2%7,410. 00 09/30/2025 2.47% Accrued Income 20. 58 0. 3%Fed Farm Cr Bk 3133EEG79 100,000 105,589. 20 2. 0%2,150. 00 09/07/2023 2.15% Accrued Income 143. 33 0. 4%Fed Farm Cr Bk 3133EEHG8 100,000 113,167. 40 2. 5%2,875. 00 06/09/2026 2.875% Accrued Income 894. 44 0. 3%Fed Farm Cr Bk 3133EER85 100,000 102,164. 00 2. 0%2,000. 00 12/01/2021 2.00% Accrued Income 666. 67 0. 5%Fed Farm Cr Bk 3133EESU5 150,000 171,783. 90 2. 4%4,185. 00 08/09/2027 2.79% Accrued Income 604. 50 0. 5%Fed Farm Cr Bk 3133EGN68 150,000 173,800. 50 2. 4%4,245. 00 11/28/2028 2.83% Accrued Income 1,450. 38 0. 5%Fed Farm Cr Bk 3133EHNR0 150,000 169,462. 05 2. 3%3,870. 00 06/15/2027 2.58% Accrued Income 1,139. 50 0. 7%Fed Farm Cr Bk 3133EHTW3 200,000 229,516. 20 2. 4%5,460. 00 08/04/2028 2.73% Accrued Income 864. 50 0. 5%Fed Farm Cr Bk 3133EHZD8 150,000 171,430. 20 2. 3%3,975. 00 09/19/2028 2.65% Accrued Income 132. 50 0. 2%Fed Farm Cr Bk 3133EJ2C2 50,000 57,075. 90 2. 8%1,610. 00 12/10/2025 3.22% Accrued Income 496. 42 0. 4%Fed Farm Cr Bk 3133EJFB0 100,000 117,521. 70 2. 7%3,170. 00 03/07/2028 3.17% Accrued Income 211. 33 0. 2%Fed Farm Cr Bk 3133EJJH3 50,000 58,731. 05 2. 7%1,575. 00 04/03/2028 3.15% Accrued Income 778. 75 0. 4%Fed Farm Cr Bk 3133EJNZ8 100,000 119,892. 70 2. 8%3,350. 00 12/14/2028 3.35% Accrued Income 995. 69 SFAM Page 10 of 22 14 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds U.S. Government Agency 0. 8%Fed Farm Cr Bk 3133EJPN3 200,000 237,695. 40 2. 8%6,600. 00 05/17/2028 3.30% Accrued Income 2,456. 67 0. 4%Fed Farm Cr Bk 3133EJXS3 100,000 114,634. 00 2. 7%3,100. 00 08/24/2026 3.10% Accrued Income 318. 61 0. 3%Fed Farm Cr Bk 3133EK5F9 100,000 109,521. 40 1. 8%2,000. 00 11/01/2029 2.00% Accrued Income 833. 33 0. 9%Fed Farm Cr Bk 3133EKDF0 250,000 293,178. 75 2. 6%7,500. 00 03/14/2029 3.00% Accrued Income 354. 17 0. 9%Fed Farm Cr Bk 3133EKJE7 250,000 296,932. 25 2. 5%7,500. 00 11/25/2030 3.00% Accrued Income 2,625. 00 0. 7%Fed Farm Cr Bk 3133EKKG0 200,000 231,596. 40 2. 4%5,600. 00 05/03/2029 2.80% Accrued Income 2,302. 22 0. 3%Fed Farm Cr Bk 3133EKS64 100,000 109,762. 50 1. 9%2,040. 00 09/24/2029 2.04% Accrued Income 39. 67 0. 5%Fed Farm Cr Bk 3133EL2Z6 150,000 148,799. 10 0. 9%1,410. 00 08/06/2030 0.94% Accrued Income 215. 42 0. 5%Fed Farm Cr Bk 3133EL4F8 150,000 150,236. 10 0. 6% 900. 00 08/18/2026 0.60% Accrued Income 107. 50 0. 5%Fed Farm Cr Bk 3133ELBZ6 150,000 164,930. 25 1. 9%3,120. 00 12/02/2030 2.08% Accrued Income 1,031. 33 0. 3%Fed Farm Cr Bk 3133ELJV7 100,000 110,087. 00 1. 9%2,080. 00 01/23/2030 2.08% Accrued Income 392. 89 0. 3%Fed Farm Cr Bk 3133ELL28 100,000 102,211. 80 1. 1%1,150. 00 06/18/2029 1.15% Accrued Income 329. 03 0. 1%Fed Farm Cr Bk 3133FXEP8 30,000 32,311. 56 2. 8% 900. 00 07/15/2023 3.00% Accrued Income 190. 00 0. 3%Fed Home Ln Bk 3130A2UW4 100,000 109,944. 60 2. 6%2,875. 00 09/13/2024 2.875% Accrued Income 143. 75 0. 5%Fed Home Ln Bk 3130A3DU5 150,000 172,807. 65 2. 6%4,500. 00 03/12/2027 3.00% Accrued Income 237. 50 0. 5%Fed Home Ln Bk 3130A3KM5 150,000 157,542. 00 2. 4%3,750. 00 12/09/2022 2.50% Accrued Income 1,166. 67 0. 3%Fed Home Ln Bk 3130A3UQ5 100,000 100,342. 20 1. 9%1,875. 00 12/11/2020 1.875% Accrued Income 572. 92 0. 5%Fed Home Ln Bk 3130A5DA4 150,000 165,314. 70 2. 4%3,937. 50 06/13/2025 2.625% Accrued Income 1,181. 25 SFAM Page 11 of 22 15 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds U.S. Government Agency 0. 7%Fed Home Ln Bk 3130A67F8 200,000 219,356. 20 2. 4%5,250. 00 03/14/2025 2.625% Accrued Income 247. 92 0. 7%Fed Home Ln Bk 3130A7BA2 200,000 220,382. 00 2. 2%4,750. 00 03/13/2026 2.375% Accrued Income 237. 50 0. 9%Fed Home Ln Bk 3130AAZ92 250,000 286,039. 00 2. 5%7,187. 50 03/12/2027 2.875% Accrued Income 379. 34 0. 4%Fed Home Ln Bk 3130ACKB9 100,000 113,582. 10 2. 3%2,625. 00 09/10/2027 2.625% Accrued Income 153. 13 0. 2%Fed Home Ln Bk 3130AD7C0 50,000 57,241. 70 2. 4%1,375. 00 12/10/2027 2.75% Accrued Income 423. 96 0. 4%Fed Home Ln Bk 3130AGDY8 100,000 115,552. 90 2. 4%2,750. 00 06/08/2029 2.75% Accrued Income 863. 19 0. 5%Fed Home Ln Bk 3130AJLW7 150,000 153,239. 25 1. 2%1,875. 00 06/14/2030 1.25% Accrued Income 718. 75 0. 9%Fed Home Ln Bk 3133XVDG3 250,000 289,563. 00 3. 8%10,937. 50 09/13/2024 4.375% Accrued Income 546. 88 0. 7%Tenn Valley Auth 880591ER9 200,000 219,406. 40 2. 6%5,750. 00 09/15/2024 2.875% Accrued Income 255. 56 22. 6%7,233,682. 83 2. 3%166,652. 30 U.S. Government Agency - Callable 0. 3%Fed Farm Cr Bk 3133EJPJ2 100,000 107,696. 70 3. 4%3,670. 00 05/16/2028 3.67% Call 05/16/2023, 100.00 Accrued Income 1,376. 25 0. 3%Fed Farm Cr Bk 3133EJR76 100,000 109,292. 70 3. 5%3,780. 00 11/07/2028 3.78% Call 11/07/2023, 100.00 Accrued Income 1,512. 00 0. 5%Fed Home Ln Bk 3130AJXE4 150,000 150,022. 80 0. 6% 937. 50 09/10/2027 0.625% Accrued Income 143. 23 1. 2%370,043. 68 2. 3%8,387. 50 Taxable Municipal 0. 5%Bolingbrook, IL 097552UG6 150,000 152,910. 00 1. 9%2,877. 00 01/01/2030 1.918% Call 01/01/2029, 100.00 Accrued Income 271. 72 0. 3%Cook Cnty, IL 213687JZ0 100,000 100,102. 00 5. 1%5,100. 00 Evanston Sch. Dist 65 12/01/2026 5.10% Accrued Income 1,700. 00 SFAM Page 12 of 22 16 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds Taxable Municipal 0. 4%Cook Cnty, IL 215075KH4 100,000 111,737. 00 4. 0%4,500. 00 Dolton SD #148 BAM Insured 12/01/2024 4.50% Accrued Income 1,500. 00 0. 3%DuPage & Cook Cnty 262579SA4 100,000 108,859. 00 3. 0%3,300. 00 Hinsdale Sch Dist 181 01/15/2025 3.30% Accrued Income 696. 67 0. 2%Hoffman Estates, IL 434452KW7 50,000 54,854. 00 4. 1%2,250. 00 12/01/2030 4.50% Call 12/01/2024, 100.00 Accrued Income 750. 00 0. 3%Lake Cnty, IL 508759KK2 100,000 111,164. 00 3. 1%3,429. 00 Hawthorn Woods SD #73 01/01/2027 3.429% Accrued Income 857. 25 0. 5%Lake Zurich, IL 511444RJ2 150,000 159,894. 00 2. 7%4,275. 00 02/01/2027 2.85% Call 02/01/2026, 100.00 Accrued Income 712. 50 0. 3%Oakbrook Ter, IL 67184PGX3 100,000 102,655. 00 2. 9%3,000. 00 12/15/2025 3.00% Call 12/15/2022, 100.00 Accrued Income 883. 33 0. 5%Skokie, IL 830728SM4 150,000 157,195. 50 2. 2%3,525. 00 12/01/2024 2.35% Accrued Income 1,175. 00 0. 5%Wheeling, IL Pk Dist 963116LL0 150,000 150,520. 50 4. 7%7,125. 00 11/01/2020 4.75% Accrued Income 2,968. 75 0. 5%Will Cnty IL CSD 968648ZL2 150,000 153,925. 50 2. 9%4,500. 00 Plainfield Cmty CSD #202 01/01/2022 3.00% Accrued Income 1,125. 00 4. 3%1,376,456. 72 3. 2%43,881. 00 Corporate 0. 4%3M Company 88579YAY7 115,000 127,888. 63 2. 6%3,306. 25 10/15/2027 2.875% Call 07/15/2027, 100.00 Accrued Income 1,524. 55 0. 3%Anheuser-Busch 035242AL0 90,000 95,552. 01 3. 1%2,970. 00 02/01/2023 3.30% Call 12/01/2022, 100.00 Accrued Income 495. 00 0. 3%Apple Inc 037833AS9 100,000 110,194. 90 3. 1%3,450. 00 05/06/2024 3.45% Accrued Income 1,389. 58 0. 4%Apple Inc 037833BY5 100,000 112,437. 40 2. 9%3,250. 00 02/23/2026 3.25% Call 11/23/2025, 100.00 Accrued Income 343. 06 SFAM Page 13 of 22 17 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Fixed Income Taxable Bonds Corporate 0. 5%Berkshire Hathaway 084670BR8 150,000 157,903. 50 2. 6%4,125. 00 03/15/2023 2.75% Call 01/15/2023, 100.00 Accrued Income 183. 33 0. 3%Berkshire Hathaway 084670BS6 100,000 111,373. 60 2. 8%3,125. 00 03/15/2026 3.125% Call 12/15/2025, 100.00 Accrued Income 138. 89 0. 3%Coca Cola Co 191216CM0 100,000 106,691. 10 2. 0%2,125. 00 09/06/2029 2.125% Accrued Income 147. 57 0. 3%Emerson Electric 291011BP8 100,000 99,453. 70 0. 9% 875. 00 10/15/2026 0.875% Call 09/15/2026, 100.00 Accrued Income 21. 88 0. 3%Exxon Mobil 30231GAT9 100,000 110,311. 20 2. 8%3,043. 00 03/01/2026 3.043% Call 12/01/2025, 100.00 Accrued Income 253. 58 0. 5%Gilead Sciences 375558AU7 150,000 155,493. 45 4. 2%6,600. 00 12/01/2021 4.40% Call 09/01/2021, 100.00 Accrued Income 2,200. 00 0. 5%IBM Corp 459200HU8 150,000 164,464. 95 3. 3%5,437. 50 02/12/2024 3.625% Accrued Income 740. 10 0. 4%Microsoft Corp 594918BY9 100,000 114,323. 40 2. 9%3,300. 00 02/06/2027 3.30% Call 11/06/2026, 100.00 Accrued Income 504. 17 0. 4%The Home Depot,437076BY7 100,000 113,120. 70 2. 6%2,950. 00 06/15/2029 2.95% Call 03/15/2029, 100.00 Accrued Income 868. 61 0. 6%Univ of Chicago 91412NAB6 180,000 195,056. 82 4. 4%8,568. 00 10/01/2023 4.76% Accrued Income 4,284. 00 0. 4%US Bancorp 91159HHA1 125,000 127,778. 63 4. 0%5,156. 25 05/24/2021 4.125% Call 04/23/2021, 100.00 Accrued Income 1,819. 01 0. 2%Wal-Mart Stores 931142EK5 50,000 53,979. 20 3. 1%1,700. 00 06/26/2023 3.40% Call 05/26/2023, 100.00 Accrued Income 448. 61 6. 2%1,971,385. 13 3. 1%59,981. 00 37. 9%12,148,985. 18 2. 5%302,651. 80 38. 7%12,379,710. 52 2. 5%304,901. 80 SFAM Page 14 of 22 18 of 77 Portfolio Statement As of 09/30/2020 Oak Brook Firefighters' Pension Fund Current Current Annual Weight Description Symbol Quantity Value Yield Income Cash Equivalent Cash Equivalent Cash Equivalent 0. 6%Schwab Government Money Fund SWGXX 189,416. 16 0. 0%18. 94 99. 8%31,942,558. 78 1. 6%505,962. 82 Total Accrued Income 71,947. 99 100. 0%32,014,506. 77 Information in this report is based on data provided by the custodian. SFAM Page 15 of 22 19 of 77 Oak Brook Firefighters' Pension Fund September 30, 2020 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 22 20 of 77 Portfolio Snapshot Portfolio Value Benchmark $19,445,380.09 Custom Oak Brook Firefighters' Pension Fund: 20433707 Analysis 09-30-2020 Asset Allocation Portfolio Net % Bmark Net % Cash 0.44 0.00 US Stocks 87.88 89.27 Non-US Stocks 11.18 10.73 Bonds 0.03 0.00 Other/Not Clsfd 0.47 0.00 Morningstar Equity Style Box %Morningstar Fixed Income Style Box % Value Blend Growth Large Mid Small 16 24 28 6 7 7 3 4 5 Total Stock Holdings 3,504 % 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 104 % Not Classified 100 0-10 10-25 25-50 >50 Stock Analysis 09-30-2020 Stock Sectors CyclicalDefensiveSen s i t i ve Benchmark Portfolio Portfolio (%) Bmark (%) h Cyclical 33.29 31.48 r Basic Matls 3.20 3.11 t Consumer Cycl 12.77 11.32 y Financial Svs 12.72 13.29 u Real Estate 4.60 3.76 j Sensitive 42.82 42.67 i Commun Svs 9.53 8.75 o Energy 1.46 2.17 p Industrials 10.22 10.72 a Technology 21.61 21.03 k Defensive 23.89 25.85 s Consumer Def 6.79 7.26 d Healthcare 14.61 15.49 f Utilities 2.49 3.10 Not Classified 0.00 0.00 World Regions Greater Asia Americas Greater Europe <25 25-50 50-75 >75% Portfolio (%) Bmark (%) Americas 89.73 89.36 North America 89.37 89.31 Latin America 0.36 0.05 Greater Europe 5.87 6.91 United Kingdom 1.38 1.80 Europe-Developed 4.25 5.03 Europe-Emerging 0.17 0.01 Africa/Middle East 0.07 0.07 Greater Asia 4.40 3.73 Japan 1.08 2.50 Australasia 0.21 0.72 Asia-Developed 0.99 0.48 Asia-Emerging 2.12 0.03 Not Classified 0.00 0.00 Performance 09-30-2020 Investment Activity Graph Portfolio Initial Mkt Val: $5,857,279 Final Mkt Val: $19,445,380 Benchmark 10-10 10-11 10-12 10-13 10-14 10-15 10-16 10-17 10-18 10-19 3.0 7.0 11.0 15.0 19.0 $23.0 mil Trailing Returns*3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return 8.41 13.50 10.89 13.25 13.24 Benchmark Return 7.72 10.73 9.05 12.14 12.16 +/- Benchmark Return 0.69 2.77 1.84 1.11 1.08 *Full return history is not available for all securities. Please see Return Participation disclosure. Best/Worst Time Periods Best %Worst % 3 Months 21.83 ( Apr 2020-Jun 2020 ) -20.93 ( Jan 2020-Mar 2020 ) 1 Year 33.24 ( Jan 2013-Dec 2013 )-10.23 ( Apr 2019-Mar 2020 ) 3 Years 21.67 ( Oct 2011-Sep 2014 )4.08 ( Apr 2017-Mar 2020 ) Portfolio Yield ( 09-30-2020 )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 09-30-2020 Top 10 holdings out of 15 Symbol Type Holding Value $ % Assets T. Rowe Price Growth Stock I (USD)PRUFX MF 4,792,728 24.65 Vanguard 500 Index Admiral (USD)VFIAX MF 4,737,966 24.37 Pioneer Equity Income Y (USD)PYEQX MF 1,846,787 9.50 Hartford Core Equity Y (USD)HGIYX MF 1,462,342 7.52 TIAA-CREF Small-Cap Blend Idx Inst (USD)TISBX MF 1,350,935 6.95 T. Rowe Price QM US Small-Cap Gr Eq I (USD)TQAIX MF 1,316,057 6.77 AQR Large Cap Defensive Style R6 (USD)QUERX MF 907,185 4.67 Goldman Sachs Small Cap Eq Insghts Instl (USD)GCSIX MF 562,727 2.89 Victory Sycamore Established Value I (USD)VEVIX MF 519,554 2.67 MFS International Growth I (USD)MQGIX MF 477,143 2.45 Release date 09-30-2020 | FINRA members: For internal or institutional use only. ©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 professional 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 166 of 250 SFAM Page 17 of 22 21 of 77 Portfolio Snapshot Portfolio Value Benchmark $19,445,380.09 Custom Oak Brook Firefighters' Pension Fund: 20433707 Risk Analysis 09-30-2020 Risk/Reward Scatterplot Portfolio Holdings Bmark 10 Year Mean -2.00 0.10 2.20 4.30 6.40 8.50 10.60 12.70 14.80 16.90 19.00 -2.0 -0.5 1.0 2.5 4.0 5.5 7.0 8.5 10.0 11.5 13.0 14.5 16.0 17.5 19.0 10 Year Standard Deviation Performance History Graph Portfolio Quarterly returns +/- Benchmark in % 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -2.0 Bmark 2.0 4.0 6.0 8.0 10.0% Risk and Return Statistics*3 Yr 5 Yr 10 Yr Portfolio Bmark Portfolio Bmark Portfolio Bmark Standard Deviation 18.00 18.25 15.13 15.40 13.71 13.88 Mean 10.89 9.05 13.25 12.14 13.24 12.16 Sharpe Ratio 0.60 0.50 0.87 0.79 0.99 0.90 MPT Statistics*3 Yr Portfolio 5 Yr Portfolio 10 Yr Portfolio Alpha 1.77 1.21 1.17 Beta 0.98 0.98 0.98 R-Squared 99.48 99.06 98.62 Portfolio-Level Performance Disclosure The portfolio-level performance shown is hypothetical and for illustrative purposes only. Investor returns will differ from the results shown. The performance data reflects monthly portfolio rebalancing. Fundamental Analysis 09-30-2020 Asset Allocation -100 -50 0 50 100 Portfolio Net % Portfolio Long % Portfolio Short % Cash 0.44 0.72 0.28 US Stocks 87.88 87.88 0.00 Non-US Stocks 11.18 11.18 0.00 Bonds 0.03 0.03 0.00 Other/Not Clsfd 0.47 0.47 0.00 Total 100.00 100.28 0.28 Market Maturity % of Stocks Portfolio Bmark Developed Markets 97.36 99.95 Emerging Markets 2.64 0.05 Not Available 0.00 0.00 Valuation Multiples Portfolio Bmark Price/Earnings 24.45 23.75 Price/Book 3.27 2.77 Price/Sales 2.07 1.84 Price/Cash Flow 14.23 12.38 Profitability Portfolio Bmark % of Stocks 2020-09 2020-09 Net Margin 14.17 13.22 ROE 20.87 20.16 ROA 6.96 6.20 Debt/Capital 41.30 43.42 Fund Statistics Potential Cap Gains Exposure 30.76 Avg Net Expense Ratio 0.43 Avg Gross Expense Ratio 0.44 Geometric Avg Capitalization ($Mil) Portfolio 57,032.39 Benchmark 59,041.30 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 — 11.33 Type Weightings % of Stocks Portfolio Bmark n High Yield 20.16 22.88 b Distressed 2.15 2.64 v Hard Asset 5.74 5.01 m Cyclical 27.12 27.08 x Slow Growth 3.87 4.22 z Classic Growth 6.68 6.19 l Aggressive Growth 19.43 15.67 c Speculative Growth 5.45 3.79 Not Available 9.42 12.52 0% 5 10 15 20 25 30 35 40 45 50 *Full return history is not available for all securities. Please see Return Participation disclosure. Release date 09-30-2020 | FINRA members: For internal or institutional use only. ©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 professional 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 167 of 250 SFAM Page 18 of 22 22 of 77 Mutual Fund Performance and Characteristics September 30, 2020 MUTUAL FUND PERFORMANCE AND FUND CHARACTERISTICS Large Cap (US) Ticker Investment Annualized Returns Symbol Objective YTD 1 yr 3 yrs 5 yrs 10 yrs T Rowe Price Growth Stock PRUFX Large Growth 22.37% 34.71% 19.01% 18.60% 16.88% Vanguard 500 Index Admiral VFIAX Large Blend 5.55% 15.11% 12.24% 14.11% 13.71% AQR Large Cap Defensive QUERX Large Blend 4.63% 10.32% 12.93% 14.25% N/A% Hartford Core Equity Y HGIYX Large Blend 5.28% 14.80% 14.32% 13.77% 14.81% Pioneer Equity Income Fund PYEQX Large Value -11.59% -5.17% 2.42% 8.19% 10.36% S&P 500 Index – Growth 20.61% 30.64% 19.09% 18.37% 16.53% S&P 500 Index 5.57% 15.15% 12.28% 14.15% 13.74% S&P 500 Index – Value -11.47% -2.68% 4.18% 8.84% 10.35% Small & Mid Cap (US) Ticker Investment Annualized Returns Symbol Objective YTD 1 yr 3 yrs 5 yrs 10 yrs TIAA-CREF Small Cap Index TISBX Small Blend -8.50% 0.63% 1.92% 8.19% 10.04% Goldman Sachs Small Cap Blend GCSIX Small Blend -14.58% -6.89% 0.26% 6.98% 9.71% Victory Sycamore Established Value VEVIX Mid-Cap Value -10.32% -5.06% 3.24% 8.29% 11.01% T Rowe Price QM Small Cap TQAIX Small Growth 1.28% 10.05% 9.98% 12.33% 14.02% Russell 2000 Index – Growth 3.88% 15.71% 8.18% 11.42% 12.34% Russell 2000 Index -8.69% 0.39% 1.77% 8.00% 9.85% Russell 2000 Index - Value -21.54% -14.88% -5.13% 4.11% 7.09% International Ticker Investment Annualized Returns Symbol Objective YTD 1 yr 3 yrs 5 yrs 10 yrs MFS International Growth MQGIX Large Growth 3.74% 13.05% 8.37% 11.15% 7.56% First Eagle Overseas SGOIX Large Blend -2.61% 1.20% 1.78% 5.52% 5.31% Goldman Sachs Intl Equity GCIIX Large Blend -5.39% 1.80% -0.63% 6.02% 5.00% Invesco Developing Markets ODVIX Emerging Mkts -1.14% 10.60% 4.51% 10.56% 4.40% MSCI EAFE Index -7.09% 0.49% 0.62% 5.26% 4.62% MSCI Emerging Markets Index -1.16% 10.54% 2.42% 8.97% 2.50% Real Estate Ticker Investment Annualized Returns Symbol Objective YTD 1 yr 3 yrs 5 yrs 10 yrs Cohen & Steers Realty CSRIX Real Estate -10.32% -9.99% 5.67% 7.05% 9.44% DJ US Select REIT Index -21.36% -22.33% -1.85% 1.99% 7.03% *YTD Return and Annualized Returns are calculated as of September 30, 2020 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 22 23 of 77 Oak Brook Firefighters' Pension Fund September 30, 2020 FIXED INCOME PORTFOLIO Fixed Income Allocation Minimum Range Maximum Current US Treasury Bills/Notes/Bonds 0% 5 – 40% 100% 9.7% US Government Agency (non-MBS) 0% 20 – 70% 75% 58.4% US Government Agency (Callable) 0% 0 – 20% 30% 3.0% US Government Agency (MBS) 0% 0 – 10% 15% 0.0% Taxable Municipal Securities 0% 5 – 20% 30% 11.1% Certificates of Deposit 0% 0 – 10% 20% 1.9% Investment Grade Corporate Bonds 0% 5 – 20% 30% 15.9% Portfolio Statistics Duration* Yield-to- Maturity* Current Yield Average Coupon Fixed Income Portfolio 5.10 yrs 0.76% 2.48% 2.73% Blended Fixed Benchmark 5.78 yrs 0.93% 2.92% 3.44% *Excludes Mortgage Backed Securities Maturity Distribution % of Fixed Income 0 - 1 years 6.8% 1 - 3 years 10.8% 3 - 5 years 25.2% 5 - 7 years 28.3% 7 - 10 years 25.1% 10 - 15 years 3.8% 15 + years 0.0% Quality Distribution** Tsy/FDIC Aaa Aa A/Baa/NR Fixed Income Portfolio 11.6% 62.4% 10.7% 15.4% **Quality Distribution reflects ratings as provided by Moody’s. Standard & Poor’s lowered the rating on US Treasuries and certa in government agencies to A+ on 8/5/2011. SFAM Page 20 of 22 24 of 77 Transaction Ledger Report From 07/01/2020 to 09/30/2020 Oak Brook Firefighters' Pension Fund Trade Principal Accrued Date Activity Description Quantity Amount Pd/Rec 07/01/2020 Deposit Schwab Government Money Fund 186,718. 78 07/01/2020 Buy State Bank of India 225,000 224,775. 00 0. 00 07/10/2025 1.00% 07/01/2020 Interest Lake Cnty, IL 1,714. 50 01/01/2027 3.429% 07/01/2020 Interest Will Cnty IL CSD 2,250. 00 01/01/2022 3.00% 07/01/2020 Sell T Rowe Price Growth Stock (1,843. 431)150,000. 00 07/02/2020 Dividend Vanguard S&P 500 ETF 4,807. 29 07/02/2020 Management Fee Schwab Government Money Fund 15,258. 00 07/15/2020 Interest DuPage & Cook Cnty 1,650. 00 01/15/2025 3.30% 07/15/2020 Interest Fed Farm Cr Bk 450. 00 07/15/2023 3.00% 07/15/2020 Dividend Schwab Government Money Fund 3. 13 07/23/2020 Withdrawal Schwab Government Money Fund 256,842. 44 07/23/2020 Interest Fed Farm Cr Bk 1,040. 00 01/23/2030 2.08% 07/28/2020 Sell Vanguard S&P 500 ETF (2,114)626,737. 58 08/01/2020 Interest Anheuser-Busch 1,485. 00 02/01/2023 3.30% Call 12/01/2022 100.00 08/01/2020 Interest Fed Farm Cr Bk 570. 85 08/01/2025 2.33% 08/01/2020 Interest Lake Zurich, IL 2,137. 50 02/01/2027 2.85% Call 02/01/2026 100.00 08/03/2020 Buy Fed Farm Cr Bk 150,000 149,585. 58 0. 00 08/06/2030 0.94% 08/04/2020 Deposit Schwab Government Money Fund 275,667. 12 08/04/2020 Interest Fed Farm Cr Bk 2,730. 00 08/04/2028 2.73% 08/06/2020 Interest Microsoft Corp 1,650. 00 02/06/2027 3.30% Call 11/06/2026 100.00 08/09/2020 Interest Fed Farm Cr Bk 2,092. 50 08/09/2027 2.79% 08/10/2020 Buy Fed Home Ln Bk 150,000 149,580. 00 13. 02 09/10/2027 0.625% 08/10/2020 Buy Fed Home Ln Bk 150,000 154,213. 50 458. 33 06/14/2030 1.25% 08/12/2020 Interest IBM Corp 2,718. 75 02/12/2024 3.625% 08/14/2020 Buy Bolingbrook, IL 150,000 150,000. 00 0. 00 01/01/2030 1.918% Call 01/01/2029 100.00 08/17/2020 Dividend Schwab Government Money Fund 4. 15 08/23/2020 Interest Apple Inc 1,625. 00 02/23/2026 3.25% Call 11/23/2025 100.00 08/24/2020 Withdrawal Schwab Government Money Fund 257,917. 44 08/24/2020 Interest Fed Farm Cr Bk 1,550. 00 08/24/2026 3.10% 08/28/2020 Buy TIAA Cref Small Cap Index 28,498. 644 567,408. 00 08/28/2020 Sell Goldman Sachs Small Cap (23,323. 644)584,957. 00 SFAM Page 21 of 22 25 of 77 Transaction Ledger Report From 07/01/2020 to 09/30/2020 Oak Brook Firefighters' Pension Fund Trade Principal Accrued Date Activity Description Quantity Amount Pd/Rec 09/01/2020 Interest Exxon Mobil 1,521. 50 03/01/2026 3.043% Call 12/01/2025 100.00 09/04/2020 Deposit Schwab Government Money Fund 182,047. 72 09/06/2020 Interest Coca Cola Co 1,062. 50 09/06/2029 2.125% 09/07/2020 Interest Fed Farm Cr Bk 1,075. 00 09/07/2023 2.15% 09/07/2020 Interest Fed Farm Cr Bk 1,585. 00 03/07/2028 3.17% 09/09/2020 Sell Vanguard S&P 500 ETF (1,056)330,549. 33 09/10/2020 Interest Fed Home Ln Bk 1,312. 50 09/10/2027 2.625% 09/12/2020 Interest Fed Home Ln Bk 2,250. 00 03/12/2027 3.00% 09/12/2020 Interest Fed Home Ln Bk 3,593. 75 03/12/2027 2.875% 09/13/2020 Interest Fed Home Ln Bk 1,437. 50 09/13/2024 2.875% 09/13/2020 Interest Fed Home Ln Bk 2,375. 00 03/13/2026 2.375% 09/13/2020 Interest Fed Home Ln Bk 5,468. 75 09/13/2024 4.375% 09/14/2020 Buy Fed Farm Cr Bk 150,000 150,699. 00 67. 50 08/18/2026 0.60% 09/14/2020 Interest Fed Farm Cr Bk 3,750. 00 03/14/2029 3.00% 09/14/2020 Interest Fed Home Ln Bk 2,625. 00 03/14/2025 2.625% 09/15/2020 Interest Berkshire Hathaway 1,562. 50 03/15/2026 3.125% Call 12/15/2025 100.00 09/15/2020 Interest Berkshire Hathaway 2,062. 50 03/15/2023 2.75% Call 01/15/2023 100.00 09/15/2020 Dividend Schwab Government Money Fund 2. 42 09/15/2020 Interest Tenn Valley Auth 2,875. 00 09/15/2024 2.875% 09/17/2020 Qualified Dividend Pioneer Equity Income 277. 818 9,120. 75 09/18/2020 Interest Fed Farm Cr Bk 1,770. 00 03/18/2021 1.77% 09/19/2020 Interest Fed Farm Cr Bk 1,987. 50 09/19/2028 2.65% 09/21/2020 Buy Emerson Electric 100,000 99,986. 33 2. 43 10/15/2026 0.875% Call 09/15/2026 100.00 09/23/2020 Withdrawal Schwab Government Money Fund 253,023. 99 09/23/2020 Qualified Dividend Victory Sycamore 55. 328 1,894. 98 09/24/2020 Interest Fed Farm Cr Bk 1,020. 00 09/24/2029 2.04% 09/28/2020 Qualified Dividend Vanguard 500 Index Fund 64. 439 19,924. 68 09/30/2020 Qualified Dividend Cohen & Steers Realty 62. 262 2,504. 17 09/30/2020 Interest Fed Farm Cr Bk 3,705. 00 09/30/2025 2.47% Information in this report is based on data provided by the custodian. SFAM Page 22 of 22 26 of 77 Monthly Financial Report For the Month Ended September 30, 2020 Prepared By 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS 60563 PHONE 630.393.1483 • FAX 630.393.2516 www.lauterbachamen.com 27 of 77 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 28 of 77 29 of 77 October 10, 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 September 30,2020 and the related statement of changes in net position -modified cash basis for the nine months then ended in accordance with the 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 30 of 77 31 of 77 Assets Cash and Cash Equivalents 14,850.00$ Investments at Fair Market Value Money Market Mutual Funds 368,403.60 Fixed Income 12,307,762.53 Mutual Funds 19,445,380.09 Total Cash and Investments 32,136,396.22 Accrued Interest 71,948.12 Prepaids 1,478.33 Total Assets 32,209,822.67 Liabilities Expenses Due/Unpaid 17,804.00 Total Liabilities 17,804.00 Net Position Held in Trust for Pension Benefits 32,192,018.67 Oak Brook Firefighters' Pension Fund Statement of Net Position - Modified Cash Basis As of September 30, 2020 See Accountants' Compilation Report 2-1 32 of 77 Additions Contributions - Municipal 1,609,736.15$ Contributions - Members 236,519.47 Total Contributions 1,846,255.62 Investment Income Interest and Dividends Earned 341,896.92 Net Change in Fair Value 1,432,936.53 Total Investment Income 1,774,833.45 Less Investment Expense (44,279.00) Net Investment Income 1,730,554.45 Total Additions 3,576,810.07 Deductions Administration 38,920.48 Pension Benefits and Refunds Pension Benefits 2,242,106.51 Refunds 0.00 Total Deductions 2,281,026.99 Change in Position 1,295,783.08 Net Position Held in Trust for Pension Benefits Beginning of Year 30,896,235.59 End of Period 32,192,018.67 Oak Brook Firefighters' Pension Fund Statement of Changes in Net Position - Modified Cash Basis For the Nine Months Ended September 30, 2020 See Accountants' Compilation Report 2-2 33 of 77 34 of 77 Oak Brook Firefighters' Pension FundCash & Cash Equivalents0%Money Market Mutual Funds1%Fixed Income38%Mutual Funds61%Cash and InvestmentsSee Accountants' Compilation Report 3-135 of 77 10/31/1911/30/1912/31/1901/31/2002/29/2003/31/2004/30/2005/31/2006/30/2007/31/2008/31/2009/30/20Financial InstitutionsHarris Bank - CK #318-320-914,973$12,950 14,900 15,000 13,935 14,583 13,235 9,943 15,000 9,495 11,203 14,85014,973 12,950 14,900 15,000 13,935 14,583 13,235 9,943 15,000 9,495 11,203 14,850Schwab - MM #2043-3707301,672423,785 448,973 457,085 466,092 267,581 523,467 485,447 397,768 965,212 319,605 368,404301,672 423,785 448,973 457,085 466,092 267,581 523,467 485,447 397,768 965,212 319,605 368,404Total316,645 436,735 463,873 472,085 480,027 282,164 536,702 495,390 412,768 974,707 330,808 383,254ContributionsContributions in Lieu of Tax Levy154,926 156,814 273,462 245,012 161,513 161,062 162,497161,718 162,799 240,352 158,726 156,058Contributions - Current Year22,763 23,041 27,851 36,000 23,731 23,665 23,876 23,761 23,920 35,315 23,322 22,930177,689 179,855 301,313 281,012 185,244 184,727 186,373 185,479 186,719 275,667 182,048 178,988ExpensesPension Benefits242,031 242,031 242,031 247,325247,325 247,533 247,533 247,691 252,412 252,412 252,412 247,461Administration17,048 2,050 1,151 17,1692,785 417 15,337 13,266 3,320 25,193 3,798 1,915259,079 244,081 243,182 264,494 250,110 247,950 262,870 260,957 255,732 277,605 256,210 249,376Total Contributions less Expenses(81,390) (64,226)58,131 16,518(64,866) (63,223) (76,497) (75,478) (69,013) (1,938) (74,162) (70,388)Oak Brook Firefighters' Pension FundCash Analysis ReportFor the Twelve Periods Ending September 30, 2020See Accountants' Compilation Report4-136 of 77 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 5-137 of 77 Contributions Contributions - Municipal 41-240-00 - Contributions in Lieu of Tax Levy 156,057.79$1 1,609,736.15 156,057.79 1,609,736.15 Contributions - Members 41-410-00 - Contributions - Current Year 22,929.65 1 236,519.47 22,929.65 236,519.47 Total Contributions 178,987.44 8 1,846,255.62 Investment Income Interest and Dividends 43-252-05 - Schwab - Fixed Income #2043-3707 43,041.42 1 228,977.26 43-550-05 - Schwab - Mutual Funds #2043-3707 33,444.58 1 113,949.65 76,486.00 6 342,926.91 Gains and Losses 44-252-05 - Schwab - Fixed Income #2043-3707 15,481.08 1 665,899.55 44-550-05 - Schwab - Mutual Funds #2043-3707 (701,892.33) 1 767,036.98 (686,411.25)4 1,432,936.53 Other Income 45-200-00 - Accrued Interest (17,689.48)1 (1,356.30) 49-000-01 - Other Income 0.00 1 326.31 (17,689.48)4 (1,029.99) Total Investment Income (627,614.73)2 4 1,774,833.45 Total Revenue (448,627.29) 3,621,089.07 Oak Brook Firefighters' Pension Fund Revenue Report as of September 30, 2020 Received Received this Month this Year See Accountants' Compilation Report 6-1 38 of 77 Oak Brook Firefighters' Pension Fund200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,000ServiceNon-DutyDisabilityDuty Disability OccupationalDiseaseSurviving Spouse AdministrativeExpenses1,492,696 17,930 407,864 46,666 276,950 83,199Pension Benefits and ExpensesSee Accountants' Compilation Report 7-139 of 77 Expended Expended this Month this Year Pensions and Benefits 51-020-00 - Service Pensions 164,193.69$1,492,696.31 51-030-00 - Non-Duty Disability Pensions 1,992.20 17,929.80 51-040-00 - Duty Disability Pensions 45,318.20 407,863.80 51-050-00 - Occupational Disease Pensions 5,185.14 46,666.26 51-060-00 - Surviving Spouse Pensions 30,772.26 276,950.34 Total Pensions and Benefits 247,461.49 2,242,106.51 Administrative Insurance 52-150-01 - Fiduciary Insurance 0.00 4,482.00 0.00 4,482.00 Professional Services 52-170-01 - Actuarial Services 0.00 3,500.00 52-170-02 - Auditing Services 0.00 3,320.00 52-170-03 - Accounting & Bookkeeping Services 1,115.00 14,730.00 52-170-05 - Legal Services 0.00 684.60 52-170-06 - PSA/Court Reporter 650.00 6,470.00 1,765.00 28,704.60 Investment 52-190-01 - Investment Manager/Advisor Fees 0.00 44,279.00 0.00 44,279.00 Other Expense 52-290-25 - Conference/Seminar Fees 150.00 450.30 52-290-34 - IDOI Filing Fee Expense 0.00 5,283.58 150.00 5,733.88 Total Administrative 1,915.00 83,199.48 Total Expenses 249,376.49 2,325,305.99 Oak Brook Firefighters' Pension Fund Expense Report as of September 30, 2020 See Accountants' Compilation Report 8-1 40 of 77 Thru Current Prior Fiscal Fiscal Service Total Name Year Year Purchase Refunds Contributions Arzer, Jacob G.$55,340.05 6,315.11 0.00 0.00 61,655.16 Babcock, Nicholas W.90,177.52 7,224.41 0.00 0.00 97,401.93 Bielawa, Matthew G.133,939.43 7,233.86 0.00 0.00 141,173.29 Bitterlin, Brian W.170,396.20 8,652.41 0.00 0.00 179,048.61 Bowlan, Seth L. 0.00 3,258.10 0.00 0.00 3,258.10 Busse, Zachary M.46,157.09 7,050.30 0.00 0.00 53,207.39 Clark, Gary E.202,339.47 9,733.13 0.00 0.00 212,072.60 Corkey, David B.139,902.48 7,243.32 0.00 0.00 147,145.80 Doran, Connor T.36,656.31 6,419.44 0.00 0.00 43,075.75 Ebsen, Robert T.76,878.43 7,224.41 0.00 0.00 84,102.84 Fagan, John J.121,980.94 8,506.38 0.00 0.00 130,487.32 Fleege, Kevin W.155,930.18 9,248.13 0.00 0.00 165,178.31 Focht, Eric D.4,754.67 5,517.10 0.00 0.00 10,271.77 Janney, Michael E.155,451.30 7,380.07 0.00 0.00 162,831.37 Johnson, Marc E.112,064.34 7,233.86 0.00 0.00 119,298.20 Kaczmarczyk, David R.114,805.96 8,496.93 0.00 0.00 123,302.89 Kelly, Sean P.107,099.44 7,224.41 0.00 0.00 114,323.85 Kornfeind, David 116,675.27 7,233.86 0.00 0.00 123,909.13 Kushner, Jeffrey A.31,345.04 6,377.11 0.00 0.00 37,722.15 Liss, Barry J.73,867.95 11,007.45 0.00 0.00 84,875.40 Marciniak, Jeffrey D.207,477.31 9,730.70 0.00 0.00 217,208.01 Matousek, Kyle M.72,236.24 7,436.28 0.00 0.00 79,672.52 Meyers, Daniel B.101,987.53 7,224.41 0.00 0.00 109,211.94 Micek, Robert S. Jr.91,777.24 7,224.41 0.00 0.00 99,001.65 Nyhanna, William R.94,654.19 8,158.86 0.00 0.00 102,813.05 Pavlovic, Michael 156,005.69 8,515.84 0.00 0.00 164,521.53 Picciola, Gino 36,649.66 6,509.88 0.00 0.00 43,159.54 Ruska, Michelle H.134,592.91 7,233.86 0.00 0.00 141,826.77 Sinclair, Thomas W. IV 27,469.39 6,311.00 0.00 0.00 33,780.39 Swagler, Shawn M.165,060.09 7,243.32 0.00 0.00 172,303.41 Washington, Glen A.132,885.89 7,233.86 0.00 0.00 140,119.75 3,166,558.21 231,402.21 0.00 0.00 3,397,960.42 Oak Brook Firefighters' Pension Fund Member Contribution Report As of Month Ended September 30, 2020 See Accountants' Compilation Report 9-1 41 of 77 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 September 30, 2020 Erickson, Michael D.144,860.99 5,117.26 0.00 0.00 149,978.25 Totals 3,311,419.20 236,519.47 0.00 0.00 3,547,938.67 Inactive/Terminated Members See Accountants' Compilation Report 9-2 42 of 77 Disability Fire Dependent***-**0454105971 Jacobs, Paul R.0$29.40 $29.40 $0.00 $0.00 $0.00 $0.00 $0.00105971 Jacobs, Paul R.0$29.40 $29.40 $0.00 $0.00 $0.00 $0.00 $0.00105971 Jacobs, Paul R.0$29.40 $29.40 $0.00 $0.00 $0.00 $0.00 $0.00***-**0454 Subtotal:$88.20 $88.20 $0.00 $0.00 $0.00 $0.00 $0.00***-**9434105972 Watkins, Garry R.0$32.13 $32.13 $0.00 $0.00 $0.00 $0.00 $0.00***-**9434 Subtotal:$32.13 $32.13 $0.00 $0.00 $0.00 $0.00 $0.00***-**7231105977 White Everhart, Jennifer M.0$23.90 $23.90 $0.00 $0.00 $0.00 $0.00 $0.00***-**7231 Subtotal:$23.90 $23.90 $0.00 $0.00 $0.00 $0.00 $0.00Disability Fire Dependent Subtotal:$144.23 $144.23 $0.00 $0.00 $0.00 $0.00 $0.00Duty Disability***-**8873105944 DeWitt, Charles W.0$5,549.73 $5,549.73 $0.00 $0.00 $0.00 $0.00 $0.00Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-143 of 77 ***-**8873 Subtotal:$5,549.73 $5,549.73 $0.00 $0.00 $0.00 $0.00 $0.00***-**8262105945 Garrigan, William H.0$5,543.77 $5,543.77 $0.00 $0.00 $0.00 $0.00 $0.00***-**8262 Subtotal:$5,543.77 $5,543.77 $0.00 $0.00 $0.00 $0.00 $0.00***-**0790105946 Harris, Scott B.0$4,603.67 $5,168.02 $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:$5,103.67 $5,168.02 $0.00 $64.35 $0.00 $0.00 $0.00***-**5183105958 Horn, Arthur W.0$3,271.77 $3,271.77 $0.00 $0.00 $0.00 $0.00 $0.00***-**5183 Subtotal:$3,271.77 $3,271.77 $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$2,244.06 $2,244.06 $0.00 $0.00 $0.00 $0.00 $0.00Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-244 of 77 ***-**7304 Subtotal:$2,244.06 $2,244.06 $0.00 $0.00 $0.00 $0.00 $0.00***-**4308105966 Naus, Gary P.0$5,529.93 $5,559.94 $0.00 $0.00 $0.00 $0.00 $30.01***-**4308 Subtotal:$5,529.93 $5,559.94 $0.00 $0.00 $0.00 $0.00 $30.01***-**9998105974 Richter, Frank H.0$4,553.81 $4,553.81 $0.00 $0.00 $0.00 $0.00 $0.00***-**9998 Subtotal:$4,553.81 $4,553.81 $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$2,080.59 $2,963.46 $882.87 $0.00 $0.00 $0.00 $0.00***-**9434 Subtotal:$2,080.59 $2,963.46 $882.87 $0.00 $0.00 $0.00 $0.00***-**7231105977 White Everhart, 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:$44,059.82 $45,173.97 $882.87 $201.27 $0.00 $0.00 $30.01Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-345 of 77 Non-Duty Disability***-**6678105964 Huffman, Lawrence W.0$1,992.20 $1,992.20 $0.00 $0.00 $0.00 $0.00 $0.00***-**6678 Subtotal:$1,992.20 $1,992.20 $0.00 $0.00 $0.00 $0.00 $0.00Non-Duty Disability Subtotal:$1,992.20 $1,992.20 $0.00 $0.00 $0.00 $0.00 $0.00Occupational Disability***-**8830105956 Petter, Raymond H.0$4,281.87 $5,185.14 $903.27 $0.00 $0.00 $0.00 $0.00***-**8830 Subtotal:$4,281.87 $5,185.14 $903.27 $0.00 $0.00 $0.00 $0.00Occupational Disability Subtotal:$4,281.87 $5,185.14 $903.27 $0.00 $0.00 $0.00 $0.00QILDRO***-**2551Q115823 Broderick, Mary E.0$1,372.27 $1,449.75 $0.00 $0.00 $0.00 $0.00 $77.48***-**2551 Subtotal:$1,372.27 $1,449.75 $0.00 $0.00 $0.00 $0.00 $77.48***-**2950Q105978 Stevens, Frances0$154.20 $154.20 $0.00 $0.00 $0.00 $0.00 $0.00***-**2950 Subtotal:$154.20 $154.20 $0.00 $0.00 $0.00 $0.00 $0.00Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-446 of 77 ***-**0876Q105979 Zamboni, Alida M.0$1,028.99 $1,028.99 $0.00 $0.00 $0.00 $0.00 $0.00***-**0876 Subtotal:$1,028.99 $1,028.99 $0.00 $0.00 $0.00 $0.00 $0.00QILDRO Subtotal:$2,555.46 $2,632.94 $0.00 $0.00 $0.00 $0.00 $77.48Service***-**4555105963 Bahnsen, Mark C.0$4,646.25 $6,311.37 $0.00 $0.00 $0.00 $0.00 $964.50105963 Benistar/Hartford 6795322$700.62 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**4555 Subtotal:$5,346.87 $6,311.37 $0.00 $0.00 $0.00 $0.00 $964.50***-**2533105962 Bodony, James G.0$8,414.57 $11,106.58 $778.07 $0.00 $0.00 $0.00 $1,913.94***-**2533 Subtotal:$8,414.57 $11,106.58 $778.07 $0.00 $0.00 $0.00 $1,913.94***-**1229105953 Brazel, John T.0$7,288.25 $9,082.06 $0.00 $0.00 $0.00 $0.00 $1,602.39105953 USAA Life Insurance Company320$191.42 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**1229 Subtotal:$7,479.67 $9,082.06 $0.00 $0.00 $0.00 $0.00 $1,602.39Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-547 of 77 ***-**2895105960 Cronholm, Robert R.0$5,087.77 $6,458.14 $0.00 $0.00 $0.00 $0.00 $1,370.37***-**2895 Subtotal:$5,087.77 $6,458.14 $0.00 $0.00 $0.00 $0.00 $1,370.37***-**1038105954 Ekkert, Clifford A.0$4,258.31 $6,646.32 $1,828.37 $0.00 $0.00 $0.00 $559.64***-**1038 Subtotal:$4,258.31 $6,646.32 $1,828.37 $0.00 $0.00 $0.00 $559.64***-**9954117571 Erickson, Michael D.0$4,531.41 $4,878.97 $0.00 $0.00 $0.00 $0.00 $347.56***-**9954 Subtotal:$4,531.41 $4,878.97 $0.00 $0.00 $0.00 $0.00 $347.56***-**2832105955 Fleishman, Mark L.0$5,083.17 $5,702.87 $0.00 $0.00 $0.00 $0.00 $619.70***-**2832 Subtotal:$5,083.17 $5,702.87 $0.00 $0.00 $0.00 $0.00 $619.70***-**2243105951 Kovarik, Joseph0$6,650.33 $7,822.01 $379.92 $0.00 $0.00 $0.00 $791.76***-**2243 Subtotal:$6,650.33 $7,822.01 $379.92 $0.00 $0.00 $0.00 $791.76***-**0972105957 Lindeman, William H.$4,966.95 $5,379.89 $412.94 $0.00 $0.00 $0.00 $0.00Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-648 of 77 0***-**0972 Subtotal:$4,966.95 $5,379.89 $412.94 $0.00 $0.00 $0.00 $0.00***-**1392105950 Mager Jr, Arthur C.0$5,041.17 $6,091.89 $0.00 $0.00 $0.00 $0.00 $1,050.72***-**1392 Subtotal:$5,041.17 $6,091.89 $0.00 $0.00 $0.00 $0.00 $1,050.72***-**3533105943 McEllin, Thomas J.0$2,436.66 $10,490.63 $136.92 $0.00 $0.00 $0.00 $719.09105943 Blue Cross Blue Shield - Illinois323$597.96 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00105943 Payment to Radius, McEllin -0$6,600.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**3533 Subtotal:$9,634.62 $10,490.63 $136.92 $0.00 $0.00 $0.00 $719.09***-**1242105952 Morton Jr, Robert J.0$8,079.57 $9,169.51 $0.00 $0.00 $0.00 $0.00 $1,089.94***-**1242 Subtotal:$8,079.57 $9,169.51 $0.00 $0.00 $0.00 $0.00 $1,089.94***-**9900105941 Nielsen, Robert D.0$6,671.79 $7,993.45 $0.00 $0.00 $0.00 $0.00 $1,321.66***-**9900 Subtotal:$6,671.79 $7,993.45 $0.00 $0.00 $0.00 $0.00 $1,321.66Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-749 of 77 ***-**7971105940 O'Rourke, William T.0$3,685.00 $4,185.26 $0.00 $0.00 $0.00 $0.00 $500.26***-**7971 Subtotal:$3,685.00 $4,185.26 $0.00 $0.00 $0.00 $0.00 $500.26***-**7761109373 Robertson, Robert V.0$5,005.06 $5,780.88 $0.00 $0.00 $0.00 $0.00 $775.82***-**7761 Subtotal:$5,005.06 $5,780.88 $0.00 $0.00 $0.00 $0.00 $775.82***-**3107105970 Schoppe, Mark S.0$6,194.53 $6,815.23 $0.00 $0.00 $0.00 $0.00 $620.70***-**3107 Subtotal:$6,194.53 $6,815.23 $0.00 $0.00 $0.00 $0.00 $620.70***-**5958105967 Schultz, Dennis M.0$5,531.51 $6,431.33 $0.00 $0.00 $0.00 $0.00 $899.82***-**5958 Subtotal:$5,531.51 $6,431.33 $0.00 $0.00 $0.00 $0.00 $899.82***-**1708105976 Sittig, Daryl L.0$6,270.93 $7,269.18 $0.00 $0.00 $0.00 $0.00 $720.38105976Aetna321$277.87 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**1708 Subtotal:$6,548.80 $7,269.18 $0.00 $0.00 $0.00 $0.00 $720.38Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-850 of 77 ***-**2658109052 Stanfa, Thomas P.0$6,394.16 $7,551.47 $0.00 $0.00 $0.00 $0.00 $1,157.31***-**2658 Subtotal:$6,394.16 $7,551.47 $0.00 $0.00 $0.00 $0.00 $1,157.31***-**0086105942 Stevens, Anthony J.0$582.11 $761.69 $0.00 $0.00 $0.00 $154.20 $25.38***-**0086 Subtotal:$582.11 $761.69 $0.00 $0.00 $0.00 $154.20 $25.38***-**1446105961 Templin, Charles E.0$5,092.95 $5,821.08 $0.00 $35.52 $0.00 $0.00 $692.61***-**1446 Subtotal:$5,092.95 $5,821.08 $0.00 $35.52 $0.00 $0.00 $692.61***-**4489115497 Vassios, Theodore W.0$4,876.83 $7,159.27 $0.00 $0.00 $0.00 $1,449.75 $832.69***-**4489 Subtotal:$4,876.83 $7,159.27 $0.00 $0.00 $0.00 $1,449.75 $832.69***-**0884105949 Wies, Konrad R.0$5,985.62 $8,834.72 $1,828.37 $0.00 $0.00 $0.00 $1,020.73***-**0884 Subtotal:$5,985.62 $8,834.72 $1,828.37 $0.00 $0.00 $0.00 $1,020.73***-**9958105969 Zamboni, James F.$4,783.29 $6,449.89 $0.00 $0.00 $0.00 $1,028.99 $451.61Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-951 of 77 0105969 Blue Cross Blue Shield of Illinois324$186.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00***-**9958 Subtotal:$4,969.29 $6,449.89 $0.00 $0.00 $0.00 $1,028.99 $451.61Service Subtotal:$136,112.06 $164,193.69 $5,364.59 $35.52 $0.00 $2,632.94 $20,048.58Surviving Spouse***-**3678105975 Clark, Ruth A.0$3,976.85 $4,963.93 $0.00 $0.00 $0.00 $0.00 $987.08***-**3678 Subtotal:$3,976.85 $4,963.93 $0.00 $0.00 $0.00 $0.00 $987.08***-**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$3,147.86 $3,742.15 $0.00 $0.00 $0.00 $0.00 $594.29***-**4859 Subtotal:$3,147.86 $3,742.15 $0.00 $0.00 $0.00 $0.00 $594.29Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-1052 of 77 ***-**5979108044 Heitschel-Arling, Joyce A.0$2,687.94 $3,390.67 $350.31 $0.00 $0.00 $0.00 $352.42***-**5979 Subtotal:$2,687.94 $3,390.67 $350.31 $0.00 $0.00 $0.00 $352.42***-**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:$28,083.06 $30,772.26 $350.31 $0.00 $0.00 $0.00 $2,338.89Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroSee Accountants' Compilation Report 10-1153 of 77 Batches 43290Oak Brook Firefighters' Pension FundSSNFamily ID Employee NameAlt Payee NameACHCheck #Net AmountMemberGrossMedicalInsuranceDentalInsuranceMisc QILDRODeductFederal TaxMultiple Batch ReportCheck Date9/30/2020 1RetroTotalsACH FlagPaymentsNet Payment TotalGrossMedicalInsuranceDentalInsuranceMisc QILDRO Deduct Federal TaxYesNo55560$215,274.83$1,953.87$217,228.70$250,094.43$0.00$250,094.43$7,501.04$0.00$7,501.04$236.79$0.00$236.79$0.00$0.00$0.00$2,632.94$0.00$2,632.94$22,494.96$0.00$22,494.96See Accountants' Compilation Report 10-1254 of 77 Check Invoice Check Date Number Vendor Name Amount Amount 07/02/20 50090 Sawyer Falduto Asset Management, LLC 52-190-01 2Q20 Investment Manager/Advisor Fee 15,258.00 Check Amount 15,258.00 07/06/20 30207 Lauterbach & Amen, LLP 52-170-03 #45051 FYE19 Workpapers 1,375.00 52-170-03 #46121 05/20 Accounting Service 1,115.00 52-170-06 #46121 05/20 PSA 650.00 52-170-03 #46535 FYE19 IDOI Report 1,290.00 ACH Amount (Direct Deposit)4,430.00 07/27/20 30210 Lauterbach & Amen, LLP 52-170-03 #46838 06/20 Accounting Service 1,115.00 52-170-06 #46838 06/20 PSA 650.00 52-170-03 #43062 01/20 Accounting Service - remainder 1,000.00 ACH Amount (Direct Deposit)2,765.00 07/27/20 30211 Lauterbach & Amen, LLP 52-170-03 #43590 FYE19 1099s 975.00 52-170-03 #43975 02/20 Accounting Service 1,115.00 52-170-06 #43975 02/20 PSA 650.00 ACH Amount (Direct Deposit)2,740.00 07/31/20 30208 Village of Oak Brook - Insurance 20-220-00 Dental Insurance 236.79 20-220-00 Medical Insurance - 07/20 8,060.90 Check Amount 8,297.69 07/31/20 30209 Internal Revenue Service 20-230-00 Internal Revenue Service 23,043.29 ACH Amount (Direct Deposit)23,043.29 08/20/20 30214 Reimer & Dobrovolny, PC 52-170-05 C2500 F26326 Legal Service 133.75 52-170-05 Previous Balance 133.75 ACH Amount (Direct Deposit)267.50 08/31/20 30212 Village of Oak Brook - Insurance 20-220-00 Medical Insurance - 08/20 8,138.94 20-220-00 Dental Insurance 236.79 Check Amount 8,375.73 08/31/20 30213 Internal Revenue Service 20-230-00 Internal Revenue Service 23,043.29 ACH Amount (Direct Deposit)23,043.29 Oak Brook Firefighters' Pension Fund Quarterly Vendor Check Report All Bank Accounts July 1, 2020 - September 30, 2020 See Accountants' Compilation Report 11-1 55 of 77 Check Invoice Check Date Number Vendor Name Amount Amount 08/31/20 30215 Lauterbach & Amen, LLP 52-170-03 #45478 04/20 Accounting Service 1,115.00 52-170-06 #45478 04/20 PSA 650.00 52-170-03 #47886 07/20 Accounting Service 1,115.00 52-170-06 #47886 07/20 PSA 650.00 ACH Amount (Direct Deposit)3,530.00 09/14/20 30216 Lauterbach & Amen, LLP 52-170-03 #48435 08/20 Accounting Service 1,115.00 52-170-06 #48435 08/20 PSA 650.00 ACH Amount (Direct Deposit)1,765.00 09/30/20 30217 Village of Oak Brook - Insurance 20-220-00 Medical Insurance - 09/20 7,501.04 20-220-00 Dental Insurance 236.79 Check Amount 7,737.83 09/30/20 30218 Internal Revenue Service 20-230-00 Internal Revenue Service 22,494.96 ACH Amount (Direct Deposit)22,494.96 09/30/20 30219 IPFA 52-290-25 2020 Fall Conference Registration 150.00 52-290-25 #10900 0.00 Check Amount 150.00 Total Payments 123,898.29 Oak Brook Firefighters' Pension Fund Quarterly Vendor Check Report All Bank Accounts July 1, 2020 - September 30, 2020 See Accountants' Compilation Report 11-2 56 of 77 Organization: Year: Hours Required Hours Completed Date Completed Cert on File 8 CTE 1 1/29/2020 No 1 4/28/2020 No 1 7/31/2020 No 4 2 6/24/2020 YES Hours Required Hours Completed Date Completed Cert on File 8 CTE 1 1/29/2020 No 1 4/28/2020 No 4 2 6/24/2020 YES Hours Required Hours Completed Date Completed Cert on File 8 CTE 1 1/29/2020 No 1 4/28/2020 No 1 7/31/2020 No 4 2 6/24/2020 Yes Hours Required Hours Completed Date Completed Cert on File 8 CTE 1 4/28/2020 No 1 7/31/2020 No 4 Hours Required Hours Completed Date Completed Cert on File 16 CTTE 1 4/28/2020 No 1 7/31/2020 No 4 Jim Bodony Gino Picciola Certified Trustee Training Type of Training Sawyer Falduto Continuing Education Session Sawyer Falduto Continuing Education Session Sawyer Falduto Continuing Education Session SB 1300 - Mandatory Consolidation Training OMA Oak Brook Firefighters' Pension Fund OMA FOIA Sawyer Falduto Continuing Education Session SB 1300 - Mandatory Consolidation Training OMA Sawyer Falduto Continuing Education Session IPFA Fall Conference - REGISTERED SB 1300 Training - REGISTERED (IPFA) Sawyer Falduto Continuing Education Session SB 1300 Training - REGISTERED (IPFA) Sawyer Falduto Continuing Education Session Type of Training Kevin Tan Sawyer Falduto Continuing Education Session Type of Training IPFA Fall Conference - REGISTERED SB 1300 Training - IFPIF Timothy Schlindwein Sawyer Falduto Continuing Education Session Sawyer Falduto Continuing Education Session IPPFA MidAmerican - REGISTERED Sawyer Falduto Continuing Education Session Type of Training Type of Training Sawyer Falduto Continuing Education Session FOIA January 1, 2020 - December 31, 2020 John Fagan 57 of 77 2020 IPPFA Trustee Training Opportunities IPPFA ONLINE SEMINAR COURSE WHEN: Ongoing (NEW) •Online 8 hr seminar (Recorded Spring, 2020) WHERE: IPPFA Website: www.ippfa.org/education/online-classes/ COST: IPPFA MEMBER: $250.00/seminar IPPFA NON-MEMBER: $450.00/seminar This online seminar agenda includes: •Consolidation Updates •Retirement Healthcare Funding and Deferred Compensation •Fiduciary Liability and Cyberliability Landscape •Economic/Investment Market Review and Update •Who Wants to Be a Pension Expert? •Legal and Legislative Updates •Pre-Consolidation Actuarial Review •Improving Your Public Pension Knowledge •Ask Your Attorney Q&A Session (Video) •Legal Updates and Recent Court Cases (Video) •Pensions and Collective Bargaining (Video) -this online seminar satisfies 8 hours of the required continuing pension trustee training 16-hour Certified Trustee Programs* offered through IPPFA IPPFA Online Certified Trustee Programs Registration is online at the IPPFA website www.ippfa.org/education/trustee-program/ Cost: IPPFA Member: $ 550.00 IPPFA Non-Member: $1050.00 *On December 18, 2019, Governor J.B. Pritzker signed SB 1300, making it Public Act101-0610. This act will consolidate all Article 3 and 4 pension fund’s investment assets.Under Public Act 101-0610, training requirements have now been reduced from 32- hours to 16-hours of new trustee training, however all pension trustees will still need4-hours of mandatory consolidation transition training.All Article 3 & 4 Pension Trustees elected or appointed are required to complete the 16-hour trustee certification course within 18 months of election or appointment to the board. 59 of 77 ILLINOIS PROFESSIONAL FIREFIGHTERS ASSOCIATION 188 Industrial Drive, Suite 134 Elmhurst, IL 60126-1608 V 630-833-2405 F 630-833-2412 ipfa@aol.com www.ipfaonline.org A VIRTUAL EVENT Due to COVID-19 Restrictions 2020 FALL PENSION SEMINAR Friday - November 6th - Red Shift LEGAL UPDATES Recent court decisions and other legal concerns impacting Article 3 & Article 4 pension boards. ACTUARIAL CHANGES DUE Public Act 101-0610 changes Tier II benefits – maximum salary for retirement purposes and PUBLIC ACT 101-0610 survivor benefits for active participants that may die, not in the line of duty. What happens to the Article 3 & Article 4 employer’s levy, including smoothing, pre & post investment consolidation. PERSONNEL POLICIES & Employer policies and bargained agreement language – how that may impact applications for BARGAINED AGREEMENTS retirement or disability benefits. THE 101st IPFA’s Legislative Representative is finalizing arrangements with a member of the General GENERAL ASSEMBLY Assembly to present their point of view concerning matters being considered in the State Capitol. LEGISLATIVE This is the last year of the 101 st Session of the General Assembly. Mark will comment on OBSERVATIONS activities to date and the potential for any trailer bills or follow-up legislation. FIDUCIARY LIABILITY Pension Board Liability – Will a Board’s fiduciary liability change after the transfer of investment assets? What other insurance coverages are available for local pension boards? What perils are covered? PENSION EXPERT The quiz-like discussion continues - creditable service, benefit calculations/transfers, and PART V related topics. FIREFIGHTER & POLICE Both funds are being established. Meeting agendas, rules & regulations, staff hirings, and other INVESTMENT FUND updates to both investment funds and revised Trustee training requirements. IPFA Members: $150.00 Non-Members: $190.00 Walk-Ins: $200.00 (Over for registration information) YOUR PENSION PROTECTORS 60 of 77 Illinois Professional Firefighters Association has established an on-line training platform. You only need to complete the registration information once, then you: ¾have 24 – 7 access to any training program offered on the platform. ¾have multiple payment options: o PayPal - credit card payments; o Indicate pay by check, then: Zelle pay, using ipfa@aol.com to transfer your payment; or have your pension fund’s administrative services person contact IPFA verifying your fund and IPFA membership status. Once verified, your pension fund or business will be invoiced and you will be given access to the class. ¾have immediate access to all training classes and attendance certificates once your class is enabled. ¾have the ability to take classes at your own pace. Most IPFA training programs are offered in segments. You can watch individual segments. Should you log off and then return to the website to complete the program, you just log in to the dashboard, select your class, and resume at the point you left off. HOW TO ESTABLISH AN ACCOUNT ON THE IPFA WEB SITE 1. Go to the Training Dashboard on the IPFA website: https://ipfaonline.org/dashboard/ 2. You must complete the Registration Section to set up your individual account. a. Keep in mind that accounts are set up on an individual basis. b. Once your individual account is established, you will only need to log in for the current class and any future training classes available on the IPFA website. 3. If you choose to pay via PayPal, you will be immediately enabled into the training program you selected. 4.If you choose the “send a check” payment option, you will need to : a. print the registration and send the registration and payment to IPFA. b. have your administrative services person contact IPFA to establish invoicing for your pension fund. They will need to advise IPFA of each registrant’s e -mail address. The class will then be enabled and the fund will be invoiced for the training class fees. IPFA has been providing educational seminars since 1975. Thank you for considering IPFA for your trustee training needs. 61 of 77 DECEMBER 31, 2019 FOR THE FISCAL YEAR ENDED PUBLIC ACT 95-0950 - MUNICIPAL COMPLIANCE REPORT FIREFIGHTERS' PENSION FUND THE VILLAGE OF OAK BROOK, ILLINOIS 62 of 77 1) Current Preceding Fiscal Year Fiscal Year Total Cash and Investments (including accrued interest)$30,912,561 $26,416,444 Total Net Position $30,896,236 $26,401,169 2) Estimated Receipts - Employee Contributions $317,300 Estimated Receipts - All Other Sources Investment Earnings $2,009,300 Municipal Contributions $2,716,058 3) Annual Requirement of the Fund as Determined by: Illinois Department of Insurance N/A Private Actuary - Foster & Foster, Actuaries Recommended Municipal Contribution $2,716,058 Statutory Municipal Contribution $2,326,256 The total cash and investments,including accrued interest,of the fund at market value and the total net position of the Pension Fund: THE VILLAGE OF OAK BROOK, ILLINOIS The Pension Board certifies to the Board of Trustees of the Village of Oak Brook,Illinois on the condition of the Pension Fund at the end of its most recently completed fiscal year the following information: The estimated receipts during the next succeeding fiscal year from deductions from the salaries of firefighters' and from other sources: The estimated amount necessary during the fiscal year to meet the annual actuarial requirements of the pension fund as provided in Sections 4-118 and 4-120: For the Fiscal Year Ending December 31, 2019 Public Act 95-950 - Municipal Compliance Report FIREFIGHTERS' PENSION FUND Page 1 63 of 77 THE VILLAGE OF OAK BROOK, ILLINOIS For the Fiscal Year Ending December 31, 2019 Public Act 95-950 - Municipal Compliance Report FIREFIGHTERS' PENSION FUND 4) Current Preceding Fiscal Year Fiscal Year Net Income Received from Investment of Assets $4,971,431 ($1,255,488) Assumed Investment Return Illinois Department of Insurance N/A 6.50% Private Actuary - Foster & Foster, Actuaries 6.50%6.50% Actual Investment Return 17.34%(4.61)% 5) Illinois Department of Insurance N/A Private Actuary - Foster & Foster, Actuaries N/A 6) Number of Active Members 31 7) Total Amount Number of Disbursed (i) Regular Retirement Pension 23 $1,900,370 (ii) Disability Pension 13 $638,741 (iii) Survivors and Child Benefits 8 $350,556 Totals 44 $2,889,667 The increase in employer pension contributions that results from the implementation of the provisions of P.A.93- 0689: The total number of active employees who are financially contributing to the fund: The total net income received from investment of assets along with the assumed investment return and actual investment return received by the fund during its most recently completed fiscal year compared to the total net income, assumed investment return, and actual investment return received during the preceding fiscal year: The total amount that was disbursed in benefits during the fiscal year,including the number of and total amount disbursed to (i)annuitants in receipt of a regular retirement pension,(ii)recipients being paid a disability pension, and (iii) survivors and children in receipt of benefits: Page 2 64 of 77 THE VILLAGE OF OAK BROOK, ILLINOIS For the Fiscal Year Ending December 31, 2019 Public Act 95-950 - Municipal Compliance Report FIREFIGHTERS' PENSION FUND 8) Current Preceding Fiscal Year Fiscal Year Illinois Department of Insurance N/A 51.94% Private Actuary - Foster & Foster, Actuaries 50.37%49.37% 9) Unfunded Liability: Illinois Department of Insurance N/A Private Actuary - Foster & Foster, Actuaries $28,906,760 10) Investment Policy - See Attached. President __________________________________________________ Date ___________________ Adopted this ___________ day of __________, 2020 Secretary __________________________________________________ Date ___________________ The investment policy of the Pension Board under the statutory investment restrictions imposed on the fund. CERTIFICATION OF MUNICIPAL FIREFIGHTERS' PENSION FUND COMPLIANCE REPORT The funded ratio of the fund: The Board of Trustees of the Pension Fund,based upon information and belief,and to the best of our knowledge, hereby certify pursuant to §4-134 of the Illinois Pension Code 40 ILCS 5/4-134, that the preceding report is true and accurate. The unfunded liability carried by the fund, along with an actuarial explanation of the unfunded liability: Please see Notes Page attached. The accrued liability is the actuarial present value of the portion of the projected benefits that has been accrued as of the valuation date based upon the actuarial valuation method and the actuarial assumptions employed in the valuation. The unfunded accrued liability is the excess of the accrued liability over the actuarial value of assets. Page 3 65 of 77 THE VILLAGE OF OAK BROOK, ILLINOIS For the Fiscal Year Ending December 31, 2019 Public Act 95-950 - Municipal Compliance Report FIREFIGHTERS' PENSION FUND 1) 2) 3)Annual Requirement of the Fund as Determined by: Illinois Department of Insurance - No December 31, 2019 Actuarial Valuation available at the time of this report. Private Actuary - Foster & Foster, Actuaries: Recommended Amount of Tax Levy as Reported by Foster &Foster, Actuaries in the December 31, 2019 Actuarial Valuation. Statutorily Required Amount of Tax Levy as Reported by Foster &Foster, Actuaries in the December 31, 2019 Actuarial Valuation. INDEX OF ASSUMPTIONS Estimated Receipts - Employee Contributions as Reported in the Audited Financial Statements for the Year Ended December 31, 2019 plus 4.46%Increase (Actuarial Salary Increase Assumption) Rounded to the Nearest $100. Estimated Receipts - All Other Sources: Investment Earnings -Cash and Investments as Reported in the Audited Financial Statements for the Year Ended December 31, 2019, times 6.5% (Actuarial Investment Return Assumption) Rounded to the Nearest $100. Municipal Contributions -Recommended Tax Levy Requirement as Reported by Foster &Foster, Actuaries, Actuarial Valuation for the Year Ended December 31, 2019. Total Cash and Investments -as Reported at Market Value in the Audited Financial Statements for the Years Ended December 31, 2019 and 2018. Total Net Position -as Reported in the Audited Financial Statements for the Years Ended December 31, 2019 and 2018. Page 4 66 of 77 THE VILLAGE OF OAK BROOK, ILLINOIS For the Fiscal Year Ending December 31, 2019 Public Act 95-950 - Municipal Compliance Report FIREFIGHTERS' PENSION FUND 4) 5) 6) 7) INDEX OF ASSUMPTIONS - Continued Net Income Received from Investment of Assets -Investment Income (Loss)net of Investment Expense,as Reported in the Audited Financial Statements for the Years Ended December 31, 2019 and 2018. Assumed Investment Return: Illinois Department of Insurance -Preceding Fiscal Year Interest Rate Assumption as Reported in the December 31, 2018 Actuarial Valuation. No December 31, 2019 Actuarial Valuation available at the time of this report. Private Actuary - Current and Preceding Fiscal Year Interest Rate Assumption as Reported in the Foster & Foster, Actuaries, December 31, 2019 and 2018 Actuarial Valuations. Actual Investment Return -Net Income Received from Investments as Reported Above as a Percentage of the Average of the Beginning balance of the Cash and Investments and the Ending balance of the Cash and Investments,excluding the fiscal year net investment income,as Reported in the Audited Financial Statements for the Fiscal Years Ended December 31, 2019 and 2018. Illinois Department of Insurance - Amount of total suggested tax levy to be excluded from the property tax extension limitation law as contemplated by 35 ILCS 200/18-185. Private Actuary - No Private Actuarial Valuation amount available at the time of this report. Number of Active Members -Illinois Department of Insurance Annual Statement for December 31, 2019 - Schedule P. (i)Regular Retirement Pension -Illinois Department of Insurance Annual Statement for December 31, 2019 - Schedule P for Number of Participants and Expense page 1 for Total Amount Disbursed. (ii) Disability Pension - Same as above. (iii) Survivors and Child Benefits - Same as above. Page 5 67 of 77 THE VILLAGE OF OAK BROOK, ILLINOIS For the Fiscal Year Ending December 31, 2019 Public Act 95-950 - Municipal Compliance Report FIREFIGHTERS' PENSION FUND 8) 9) INDEX OF ASSUMPTIONS - Continued The funded ratio of the fund: Illinois Department of Insurance -Preceding Fiscal Year Actuarial Value of Assets as a percentage of Accrued Liability as Reported in the December 31, 2018 Actuarial Valuation.No December 31, 2019 Actuarial Valuation available at the time of this report. Private Actuary - Current and Preceding Fiscal Year Actuarial Value of Assets as a percentage of Accrued Liability as Reported in the Foster & Foster, Actuaries, December 31, 2019 and 2018 Actuarial Valuations. Unfunded Liability: Illinois Department of Insurance -Deferred Asset (Unfunded Accrued Liability)-No December 31, 2019 Actuarial Valuation available at the time of this report. Private Actuary -Deferred Asset (Unfunded Accrued Liability)as Reported by Foster &Foster, Actuaries in the December 31, 2019 Actuarial Valuation. Page 6 68 of 77 69 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 1 Volume 18, Issue 4, October 2020 Legal and Legislative Update Line-of-Duty Disability Awarded Despite Pre-Existing Mental Health Condition Village of Franklin Park v. Sardo,2020 IL App (1st) 191161 (2020) The Appellate Court in this matter determined a police officer with a preexisting mental condition is not disqualified from a line-of-duty pension. The Court further held that a preexisting physical disability and a preexisting mental condition are treated alike and confirmed that an act of duty need not be the sole cause of disability. The facts underlying the case were not in dispute. Prior to becoming a Roselle police officer in 1996, Detective Christopher Sardo served in the United States Marine Corps from 1987 to 1991, including a tour of duty in Desert Storm. During his tour of duty, Sardo was exposed to several traumatic incidents including the deaths of fellow Marines. Post-discharge, Sardo was diagnosed with PTSD by the Department of Veteran Affairs and received a 90% disability rating, 70% of which was related to PTSD. Sardo received outpatient treatment including counseling, anger management and medication. During his course of treatment, Sardo continued to work full time. During his time as a police officer, Sardo experienced numerous traumatic events including deaths of firefighters and police officers, none of which rendered him unable to perform his job. Sardo was an exemplary employee with excellent performance reviews including his last review on December 31, 2013. I N T H I S I S S U E 1 Line-of-Duty Disability Awarded Despite Pre-Existing Mental health Condition 2 Governor Extends Remote Attendance Options 3 Reimer Dobrovolny & LaBardi PC 4 John Gaw Joins Reimer Dobrovolny & LaBardi as an Associate Attorney 4 FOIA Applies to Personal Email and Texts of Public Officials 4 Chicago City Council Violated Open Meetings Act During COVID Conference Calls 5 Mistaken Approval of Service Credit Not Final Administrative Decision 6 Pension Reform in California State Supreme Court Rules Pension Modifications are Constitutional 7 Pension Reform in Oregon State Supreme Court Rules Against Employees 7 Legislation Proposed to Extend Municipal Funding Deadline 8 Reimer Dobrovolny & LaBardi PC News 70 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 2 On February 6, 2014, Sardo responded to a fatal Metra train versus pedestrian accident. Sardo, arrived to disintegrated body parts all over the area. As lead investigator, Sargo collected evidence, interviewed witnesses, reviewed video and notified next of kin.When Sardo showed the victim’s husband a photo of a tattooed body part for identification, the husband began screaming and running. Sardo was unable to forget the screaming. Soon after the accident, Sardo began outpatient therapy for depression, PTSD and thoughts of suicide. Sardo stopped working on May 9, 2014 and applied for a line of duty pension on June 22, 2015, asserting a disability due to repetitive work exposure to life threatening and gruesome situations culminating in the Metra accident. Sardo was examined by three independent medical examiners. In summary, the physicians determined (i) Sardo had PTSD and Major Depressive from his military service but was able to serve as a police officer, (ii) the train accident led to his trauma and triggered his preexisting PTSD, and (iii) he was permanently disabled as a result of the accident. Thepensionboardconcludedthetrainaccidentwas not the predominate cause but awarded Sardo a line-of-dutydisabilityastheaccidentcontributedto his disability. The Village filed a complaint for administrative seeking administrative review. The Village argued (i) an act of duty must be the sole cause of an officer’s disability and (ii) Sardo’s police work cumulatively aggravated his PTSD. The Village further argued caselaw supports treating mental and physical disabilities differently and, unlike a physical disability, an officer may not receive a line-of-duty pension for a mental disability when the mental condition preexisted. The circuit court affirmed the pension board’s decision and heldanact ofdutyneednot bethesole cause of the police officer’s mental disability and the board may award a line of duty pension to an officer for a mental disability despite an officer’s preexisting mental condition. The Appellate Court affirmed the circuit court’s decision. The Appellate Court reasoned that the words “solely” and “entirely” do not appear under section 3-144.1(a) of the Pension Code. To support their position, the Village cited a firefighter disability case. The Appellate Court noted they do not rely on cases involving afirefighter as authority for determining a line-of-duty disability pension for a police officer and under the Code’s plain language, an officer may receive a line-of-duty pension even if the disability is not “solely” caused by an act of duty. Countering the Village’s position that the board should treat preexisting mental conditions differently than preexisting physical conditions, the Appellate Court held that the provisions of 3-114.1(a) neither requires nor suggests that the board apply a different standard. To be clear, the Appellate Court confirmed that in order to receive a line-of-duty pension based on a mental disability, the officer needs to establish the disability is a result of a specific, identifiable act of duty unique to police but clarified that a physical disability and mental disability are to be treated alike. Governor Extends Remote Attendance Options As noted in our last newsletter, permanent amendments to the Open Meetings Act have been enacted in response to the necessity to hold public meetings during the ongoing Coronavirus pandemic. On September 18, 2020, Governor Pritzker signed the most recent Gubernatorial Disaster Proclamation which remains in effect through October 17, 2020. Those who have been following this issue will note the Governor has been issuing 30 day disaster proclamations in succession since March. It is likely the current proclamation will be extended beyond the current expiration date of October 17, 2020. As a refresher, the recent amendments to the Open Meetings Act allow a public body the option to hold meetings via phone, video, or other electronic means without the physical presence of a quorum under the following conditions: 1) The Governor or Illinois Department of Public health has issued a disaster 71 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 3 declaration covering all or part of the jurisdiction of the public body. 2) The head of the public body determines an in-person meeting is not practical or prudent because of a disaster. 3) All members of the public body participating in the meeting must verify they can hear one another and all discussion or testimony. 4) Membersofthepublicpresentattheregular meeting location can hear all discussion or testimony and all votes taken unless attendanceat theregular meetinglocationis not feasible due to the disaster. If in-person attendance by the public is not feasible, the public body must provide alternative means for the public to hear the meetings such as using a telephone or web-based link. 5) At least one member of the public body, chief legal counsel, or chief administrative officer is physically present at the regular meeting location, unless not feasible because of the disaster. 6) All votes must be conducted by roll call of each member. 7) Notice must continue to be posted at least 48 hours’ in advance of the meeting. 8) The public body must keep a verbatim record in the form of an audio or video recording of meetings held in this manner. Like prior declarations, the September 18, 2020, declaration finds “in person attendance of more than fifty people at the regular meeting location not feasible.” Public bodies exercising a telephonic or electronic attendance option must provide notice and allow members of the public to monitor the meeting. In short, holding pension board meetings solely via phone, video, or other electronic attendance continues to be permissible and likely will remain an option for the foreseeable future. Reimer Dobrovolny & LaBardi PC Friends and clients, we are excited to announce the formation of Reimer Dobrovolny & LaBardi PC. Effective October 1, 2020, Brian LaBardi will join Rick Reimer and Jim Dobrovolny as a named partner with the firm. Brian has been with the firm since 2012 and a partner since 2018, focusing on public sector pension law, civil/appellate litigation, and employment/labor issues for police officers and firefighters. You may have seen Brian presenting at an IPPFA or IPFA conference. Prior to joining the firm, Brian was an Assistant State’s Attorney with the Kendall County State’s Attorney’s Office heading its civil division. While at the State’s Attorney’s Office, Brian was responsible for advising governmental entities on open government regulations such as the Open Meetings Act and the Freedom of Information Act. Handling a variety of defense claims on behalf of County entities and employees, Brian litigated civil and quasi-criminal claims in both the Circuit Court and before administrative bodies. Brian also has an extensive background in private practice civil litigation. He has defended professional malpractice claims, commercial litigation claims, business litigations claims and serious injury claims. In addition, Brian has presented arguments before numerous State appellate courts, the 7th Circuit Court of Appeals, and the United States Supreme Court. Mr. LaBardi received his undergraduate degree from Valparaiso University and his law degree from TheJohn Marshall LawSchool in 2006 where hewasontheDean’sList.Heislicensedtopractice law in Illinois, the United States District Court for the Northern District of Illinois, and the 7th Circuit Court of Appeals. He is a member of the Illinois State and DuPage County Bar Associations. All ofus at RDL look forwardto providing Illinois’ police and fire pension funds with the excellent representation you demand and deserve. Please do not hesitate to contact us if we can be of any assistance! 72 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 4 John Gaw Joins Reimer Dobrovolny & Labardi PC as an Associate Attorney John recently retired from the Lisle police department after 27 years of service. He started his career in law enforcement in 1993, following 4 years in the United States Marine Corp and service in Desert Storm. As a police officer, he served in many different roles from firearms instructor and SRT, to crash reconstruction and evidence technician. Hemovedthroughtheranks andretired as Deputy Chief in September of 2020. In addition to department roles, John served 12 years as President of his local Union and 8 years as a Pension Board Trustee. These assignments gave him a desire to pursue a career in Law. While working patrol shift on midnights he completed his education, receiving his Juris Doctor degree from the NIU College of Law. John is a licensed attorney in both Illinois and Indiana and admitted to practice in Federal Courts for both states. John is passionate about the rights of public safety officers; he looks forward to serving his brothers and sisters in this new role. FOIA Applies to Personal Email and Texts of Public Officials Better Government Ass'n v. City of Chicago Office of Mayor,2020 IL App (1st) 190038 The main issue in this case was whether text messages and e-mails sent from public officials' personal accounts qualify as public records under FOIA. Back in 2016, the BGA made two FOIA requests seeking “any and all communication” between the Chicago Department of Public Health and the Mayor’s office related to lead in the drinking water at Chicago Public Schools. The City did not comply with the request and made no effort to ask its officials if they had any responsive records within their personal emails or text messages. At the trial level, the Circuit Court ordered the City to make inquiries of their officials concerning their personal emails and text messages, and supply affidavits from them. The City appealed but lost again. The Appellate Court held that “communications pertaining to public business within public officials' personal text messages and e-mail accounts are public records subject to FOIA … Accordingly, we affirm the order of the circuit court directing defendants to inquire whether the relevant officials used their personal accounts for public business.” The Court’s ruling was consistent with a prior opinion from the Public Access Counselor,(PAC 16-006; Request for Review 2016 PAC 41657). This underscores the need to use caution with personal phones and emails. If a communication pertains to public business, and comes to you in your public capacity, it is probably subject to FOIA. Following a FOIA request, you could be requiredtosearchyourpersonalaccounts,turnover any responsive information, and provide an affidavit as to the presence or absence of any responsive information. Chicago City Council Violated Open Meetings Act During COVID Conference Calls 2020 PAC 62981 In a non-binding opinion, the Public Access Counselor (PAC) at the Attorney General’s Office has found the Chicago City Council violated the Open Meetings Act (OMA) by gathering via video/phone conference on several occasions with Mayor Lightfoot to discuss issues related to the City’s COVID response. At issue were four meetings held via video or conference call wherein the Mayor’s office shared COVIDinformationwith thealdermen. Amajority of a quorum of the city council was present at three of the four meetings in question. While no city council action was taken during these meetings, discussion was held regarding the City’s COVID response. No agendas were posted, the public was not able to participate, and no minutes were taken. The City council later took action related to several of the matters discussed. 73 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 5 In response to the OMA complaint filed by a news organization, the City referred to these gatherings as “briefings” as opposed to meetings. It further averred the OMA did not apply because the alderman did not attend in their legislative capacity but rather only in their capacity as “community- based first responders”. It argued no deliberation occurred and the matters discussed were not “public business”. Rather, the aldermen participating in the call were there to receive the most current information on the City’s COVID response to share with their constituents. As such, no “meeting” was held as defined by the OMA. In finding the City violated the OMA, the PAC first found, “when a majority of a quorum of aldermen gatherto participatein adiscussion about theCity’s response to a crisis such as the current pandemic, they do so as the legislative body of the City of Chicago even if they do not vote or otherwise take final action on how to respond.” As to the City’s argument no “meeting” occurred inasmuch as no deliberation was held, the PAC noted prior opinions and case law holding “discussing public business” under the OMA is broadly construed and includes discussion and exchange of facts prior to making a decision. The PAC held, “Thus, ‘public business’ includes not only those subjects on which public bodies take action during a gathering, but also the information exchanged relating to matters that public bodies would potentially act upon in the future, regardless of whether action concerning the information is ultimately taken.” In short, whether formal action is taken is not determinative of whether a “meeting” occurred under the OMA inasmuch as discussion of public business is sufficient in and of itself to trigger the requirements of the Act. Ultimately, the PAC concluded the City violated the OMA requirements to post an agenda, hold the meeting at a time and place open to the public, allow for public comment, and keep minutes of all meetings. Mistaken Approval of Service Credit Not Final Administrative Decision Chappell v. The Board of Trustees of IMRF, 2020 IL App (1st) 1922255 (2020) The First District Appellate Court determined that an IMRF grant of service credits based upon an IMRF designated agent’s erroneous pension eligibility certification was a not a “final administrative decision” pursuant to Section 3-101 oftheAdministrativeReviewLaw subject to the35 day rule. Chappell was the executive director of a not-for- profit community center contracted by River Forest Township (“Township”) to provide youth and recreational services from 1986-2002. Chappell, as the executive director, was aware that community center employees were ineligible for IMRF participation as Chappell previously declined participation for community center employees as it wastoocostprohibitive.Chappellwaspaiddirectly by the community center, not the Township. In 2002, Chappell was employed by Township as a facilities manager and received salaries from the Township and the community center. Upon his employment with the Township, Chappell completed an enrollment form from IMRF and an “omitted service application” seeking to purchase credit from his years at the community center. Chappell used the Township IMRF employer ID number when listing the community center. The Township’s supervisor and designated IMRF agent signed the “omitted service credit application” incorrectly certifying Chappell was a Township employee from 1986 to 2002. Chappell received confirmation from IMRF’s “Past Service Unit” indicating he was eligible to purchase 198 months of service credit. Chappell purchased the service credit and retired in 2015. In 2017, an internal staff audit revealed that the Township certified Chappell’s pension eligibility in error as he was not a Township employee between 1986 and 2002. IMRF notified Chappell that his pension would be recalculated. At an 74 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 6 administrative hearing, the hearing officer recommended to the board of trustees of IMRF that Chappell’s benefits be recalculated. IMRF accepted the recommendation and the circuit court on administrative review reversed finding IMRF lacked jurisdiction to reconsider the approval of the omitted service application, IMRF didn’t have statutory authority to recover the benefits paid in error and last, IMRF was equitably estopped from recalculating the benefits. IMRF and the Township appealed. Focusing on whether IMRF’s approval of Chappell’s omitted service credit application was a final administrative decision subject to the 35-day rule, the Appellate Court concluded instead, IMRF made an “interlocutory administrative determination” not subject to the 35-day limitation. IMRF’s initial approval was a “rubber stamp approval” highlighted by the fact IMRF did not hold a hearing or listen to testimony. The automatedapproval process wasastatutory process created by the legislature to facilitate the efficient administration of a sizable public pension fund and its reliance on pension eligibility certificates of its participating employers is statutory and practical commonplace. As the approval was not subject to the 35-day limitation, IMRF had jurisdiction to reconsider the initial approval long after the 35 days expired. Further, the Appellate Court found the Township and IMRF did not have the statutory authority to grant Chappell the omitted service credits because he did not meet the statutory definition of employee. The terms of the Pension Code control who is a qualified employee and no act by a municipality can make an ineligible employee eligible. A decision by an agency that lacks statutory power to enter the decision lacks personal and subject matter and as such, all decisions are void. As such, IMRF’s approval was void for want of Pension Code authorization. Regarding IMRF’s authority to recover benefits paid in error, the Court interpreted “error” as defined by Black’s Law Dictionary to mean “an assertion or belief that does not conform to objectivereality.”Specifically, theCourt noted that had the legislature intended to limit IMRF’s authority to recalculate a pension and recoup the overpayment of benefits to cases involving arithmetical errors, it could have done so. The Court held that neither the Township’s certification, nor IMRF’s approval conformed to objective reality and since Chappell was ineligible for pension benefits as the employee of a non- participating employer from 1986 to 2002, IMRF was duty bound to retain overpayment amounts. Last,regardingequitableestoppel,theCourtdenied Chappell’s claim and he knew full well that he did not qualify for IMRF participation from 1986 to 2002 and as such his reliance on the actions taken by the Township and IMRF was not reasonable. Accordingly, the decision of the circuit court was reversed, the decision of IMRF affirmed and the case was remanded for further proceedings not inconsistent with Court’s decision. Pension Reform in California-State Supreme Court Rules Pension Modifications are Constitutional Alameda Co. Deputy Sheriffs’ Assn. v. Alameda Co.Employees Retirement Assn., (2020), 9 Cal.5th 1032 In 2013, the California Legislature enacted a number of pension reforms, resulting in several legal challenges. This case addressed provisions of the new pension law that would exclude certain types of pay when calculating the amount of a pension. Previously, retirement boards had included various forms of additional pay and cash outs, which would inflate the pensions. Unions representing affected public employees challenged whether the new exclusions could be constitutionally applied to people who were hired before the new law. The California Supreme Court considered their priordecisionsapplyingthe“CaliforniaRule”. The CaliforniaRuleis thetheory that a publicemployee is vested in the pension benefit that existed at the start of their employment, in such a manner that the 75 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 7 benefits cannot be reduced, even for future years of service, except under exceptionally limited circumstances. To be legal under the California Rule, any changes “must bear some material relation to the theory of a pension system and its successful operation” and changes creating a disadvantage must be offset by a comparable advantage. In its decision, the Court found the changes were constitutionally permissible because their purpose was to “close loopholes” and prevent potentially abusive practices, such as pension spiking. The Court reasoned that the changes did not need to provide an offsetting new advantage because that would defeat thepurpose ofclosing loopholes that should not have existed originally. Pension Reform in Oregon State Supreme Court Rules Against Employees Jennifer James, et al. v. State of Oregon, et al., (SC S066933) The pension system in Oregon has two tiers of defined benefit employees, and a third tier of defined contribution employees. In 2019, the State of Oregon enacted some new pension reform legislation, which was challenged by its public employees. The Oregon Supreme Court denied the claims brought by public employees, which challenged two amendments to the Oregon Public Employee Retirement System (PERS). The first challenged amendment redirects a member's PERS contributions from the member's individual account program (the defined- contributioncomponent ofthemember'sretirement plan) to a newly created employee pension stability account, used to help fund the defined benefit component of the member's retirement plan. The second challenged amendment imposes a cap on the salary used to calculate a member's benefits. Public employees primarily argued that the redirection and salary-cap provisions of the new legislation unconstitutionally impaired their employment contracts in violation of the state Contract Clause of the Oregon Constitution. In the alternative, they argued that the amendments violated the Federal Contract Clause, breached their contracts, and constituted an unconstitutional taking of their property without just compensation in violation of the Oregon Constitution, and the Fifth and Fourteenth Amendments to the United States Constitution. Inaunanimousopinion,theOregonSupremeCourt denied the challenges. The Court held that the challenged amendments did not impair contract rights under the state Contract Clause, because the amendments do not operate retrospectively to decrease the retirement benefits attributable to work that the member performed before the effective date of the amendments. The court further explained that, although the amendments operate prospectively to change the offer for future retirement benefits, the pre-amendment statutes did not include a promise that the retirement benefits would not be changed prospectively. Legislation Proposed to Extend Municipal Funding Deadline H.B. 5799 As you may recall, along with a change in benefits now known as “tier 2”, an amendment to Articles 3 and4ofthePensionCodein2011,requiresfunding of police and fire pension funds using a formula to include “an amount sufficient to bring the total assets of the pension fund up to 90% of the total actuarial liabilities of the pension fund by the end of municipal fiscal year 2040.” Legislation has been introduced to amend this calculation by moving the date 10 years further down the road to 90% funded by 2050. While it is unclearwhetherthelegislation will becalledfor a vote during the November veto session, it is a priority of municipal organizations who argue the change is needed to accommodate municipalities experiencing budget deficits stemming from the COVID-19 pandemic. Stay tuned. 76 of 77 © 2020 REIMER DOBROVOLNY & LABARDI PC 8 REIMER DOBROVOLNY & LABARDI PC NEWS RDL partner Brian LaBardi presented at the IPFA virtual four hour training course on the changes implemented by P.A. 101-0610 on July 2, 2020. RDL partner Rick Reimer presented at the IPPFA certified new trustee training at NIU in Naperville on September 23, 2020. RDL partner Brian LaBardi presented at the IPPFA MidAmerican Pension Conference held both virtually and in person in Naperville from September 30-October 2, 2020. RDL partner Rick Reimer will present at the IPPFA certified new trustee training at NIU in Hoffman Estates on October 19, 2020. RDL partner Brian LaBardi will present at the IPFA fall seminar to be held virtually on November 6, 2020. Legal and Legislative Update Volume 18, Issue 4, October 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 & LABARDI 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. Suggested Agenda Items for January (or 1st Quarter) Approval of annual COLA increases. Semi-annual review of closed executive session minutes to determine if it needs to remain confidential. Determine need for election of beneficiary and active Trustees and/or re-appointment of appointed Trustees – request for re-appointment of appointed Trustees. Schedule annual examinations for disabled firefighters/police officers under age 50. Annual verifications of eligibility for beneficiaries. Review/update contracts with vendors (accountants, actuaries, attorneys, investment 77 of 77