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Minutes - 01/31/2014 - Firefighter's Pension Fund Board MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OAK BROOK FIREFIGHTERS' PENSION FUND January 31, 2014 A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on Friday, January 31, 2014 at 9:00 a.m., at the Butler Government Center, West Wing Conference Room located at 1200 Oak Brook Road,Oak Brook, IL 60523, pursuant to notice,to conduct regular business. CALL TO ORDER BY PRESIDING OFFICER President Michael Erickson called the meeting to order at 9:04 a.m. ROLL CALL Upon roll call the following answered: Present: President Michael Erickson, Secretary John Fagan,Trustee Mark Fleishman, Trustee Timothy Schlindwein and Trustee George Kouba Absent: None Also Present: Jason Franken of Foster&Foster; David Russell of Investment Performance Services,LLC(IPS); Robert Thompson and Amber Powers of MB Financial; Becky Davis of Lauterbach&Amen, LLP (L&A); FF Mark Schoppe;and Treasurer Sharon Dangles(arrived later) PUBLIC COMMENT—The Board announced that Attorney Anthony Argeros died suddenly yesterday. Attorney Argeros was Mr. Schoppe's attorney for his disability hearing. Mr. Schoppe is in the process of finding another attorney. There was no further public comment. APPROVAL OF THE PRIOR MEETING MINUTES The Board reviewed the prior meeting minutes presented in the board meeting packet. • Trustee Fagan noted an amendment to the 10/24/2013 regular meeting minutes: change"Alderman"to"Village Trustee"Don Adler, in the `Also Present' section,on page one. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to approve the 10/24/2013 minutes as amended. Motion carried by unanimous voice vote. • A motion was made by Trustee Fagan and seconded by Trustee Kouba to approve the 12/02/2013 special meeting minutes as written. Motion carried by unanimous voice vote. The transcript of the hearing will be attached to the 12/02/2013 minutes for the Boards' records. • The Board noted that there are currently no closed session minutes to review or release at this time. ACTUARIAL ASSUMPTIONS—Jason Franken, Foster&Foster The Board discussed the actuarial assumptions that should be used to prepare the 12/31/2013 report. The Board agreed to set a date for a special meeting to review the actuarial report;the date selected was 03/26/2014 at 9:00 a.m. Treasurer Dangles joined the meeting at 9:18 a.m. Mr. Franken was excused and left the meeting at 9:26 a.m. ACCOUNTANT'S REPORT The Board reviewed the financial report summary presented in the board meeting packet. For the twelve months ended 12/31/2013,the net position held in trust for pension benefits was$24,482,738.66. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to accept the 12/31/2013 financial report as prepared by L&A. Motion carried by unanimous voice vote. The Board reviewed the disbursements presented in the board meeting packet. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to approve the net payroll payouts and vendor payouts for October, November and December 2013.The vendor payouts totaled $129,939.07 (see attached detail). AYES: Trustees Erickson, Fagan, Schlindwein, Fleishman and Kouba NAYS: None ABSENT: None Oak Brook Firefighters'Pension Fund Minutes of Meeting—January 31,2014 Page 2 of 4 INVESTMENT PERFORMANCE SERVICES Mr.Russell distributed the 10/25/2013,revised and approved,Appendix A to the investment policy statement for the Boards' records. Ms. Davis will submit the revised Appendix A to the Illinois Department of Insurance(IDOL) for its records. Mr. Schoppe stepped out the meeting momentarily from 9:51 a.m., and returned at 9:59 a.m. Mr. Russell distributed the quarterly investment report and reviewed it with the Board. As of 12/31/2013,the Fund was up 2.9%for the quarter, and the ending market value was $24,399,103. The portfolio return was comparable to the benchmark which was up 3.0%for the quarter. Investment earnings were$690,360 for the quarter, and $1,983,728 year-to-date. As of 12/31/2013, asset allocations were: Domestic Equity 22.4%, International Equity 14.7%, Fixed Income 39.7%, REIT Mutual Funds 9.7%, Global Tactical Asset Allocation 8.2%, and total Cash 5.4%. Year-to-date the portfolio was up 8.6% and reported a 6.8%return for the three year performance. Mr. Russell reviewed Blackrock Equity and Harbor International funds' performance. The MB representatives distributed and reviewed the fixed income, cash and equivalent quarterly investment report with the Board. As of 12/31/2013,the total fund performance was up 0.14%for the quarter,outperforming the benchmark which was down 0.36%. Year-to-date the total fund was down 0.46%and the benchmark was down 2.19%. The change due to investment for the quarter was a gain of$12,738 and the ending market value was $9,685,770. Duration was reported to be 2.94 years. Mr. Russell reviewed the quarterly compliance report as of 12/31/2013, and indicated that the portfolio is in compliance. No changes to the portfolio or investment policy statement were recommended at this time. A motion was made by Trustee Kouba and seconded by Trustee Fleishman to accept the investment report as presented. Motion carried by unanimous voice vote. Ms. Dangles, Mr. Russell, Mr. Thompson and Ms. Powers were excused and left the meeting at 10:42 a.m., and the Board took a short break. The Board reconvened at 10:51 a.m. Trustees present were: President Michael Erickson, Secretary John Fagan,Trustee Mark Fleishman,Trustee Timothy Schlindwein and Trustee George Kouba Also present were: Treasurer Sharon Dangles,Becky Davis of Lauterbach&Amen, LLP(L&A)and FF Mark Schoppe INFORMATIONAL ITEMS AND UNFINISHED BUSINESS The Board reviewed the Trustee Training Summary and discussed training options for 2014. A special joint training meeting with the Police and Fire Pension Trustees is currently scheduled for March 6`h and March 13`''. The training will provide training credit for the attending trustees. The Board noted that the standard mileage rate for 2014 is 56 cents per mile. The Board discussed Statements of Economic Interest(SEI). The Village identifies the Pension Board with DuPage County, and has indicated that this has been completed. Trustees can expect to receive the SEI beginning in March, and were reminded to complete their SEI on or before May I"to avoid late filing fees. L&A reported that the last outstanding Annual Affidavit of Continued Eligibility was returned; 100%compliance was reported. The Board discussed a recent FOIA request that was completed with the assistance of the Board Attorney. Oak Brook Firefighters'Pension Fund Minutes of Meeting—January 31,2014 Page 3 of 4 The Legal and Legislative Update was presented in the board meeting packet for the Board to review at their convenience. The Board noted that Mark Schoppe's disability application is still pending. In the last meeting,the Board decided to allow Glenside Fire to intervene based only on the stipulations cited. The Board discussed the reciprocity request from Brian Bitterlin(Chicago Ridge Fire). Mr. Bitterlin has declined his request for reciprocity at this time. The Board discussed the reciprocity request from Ken Heinzelman(Peoria Fire). Mr. Heinzelman is up-to-date with his additional 1%being withheld from his paycheck. The Board discussed the non-duty disability application received from FF/PM George Grodek. The Board indicated that a date must be set for his hearing. An attempt was made,via conference call,to contact the Board Attorney's secretary to set a hearing date,but she was not available. Another attempt will be made later in the meeting. NEW BUSINESS The Board reviewed the retirement calculation, prepared by L&A, for Fire Chief Thomas J. McEllin. Treasurer Dangles reviewed and approved the calculation. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to approve the retirement calculation as follows: entry date was 07/05/1979, retirement date is 11/09/2013,effective date of pension is 11/10/2013, age at retirement is 54 years old,with 29 years and 11 months of creditable service earned, at 74.79%of his applicable salary of$136,857.67,the amount of his originally granted monthly pension is$8,529.85, until his first increase in December of 2014. AYES: Trustees Erickson,Fagan, Schlindwein, Fleishman and Kouba NAYS: None ABSENT: None The Board reviewed the 2014 statutory annual pensioner increases presented in the board meeting packet. Treasurer Dangles reviewed and approved the calculations. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to approve the 2014 annual pensioner increases as presented. AYES: Trustees Erickson,Fagan, Schlindwein and Kouba NAYS: None ABSENT: None ABSTAIN: Trustee Fleishman The Board discussed preparations for election procedures. The active member term currently held by Michael Erickson will expire on 04/30/2014, so an election will be held. Mr. Erickson indicated that he is interested in continuing on the Board, if nominated. L&A will assist with the election procedures, as needed. The results of the election will be reported at the next meeting. The Board noted that the appointed member term currently held by George Kouba will expire on 04/30/2014. Mr. Kouba indicated that he is interested in continuing on the Board,and will inform the Village Council of his intention. The Board discussed the April 30`h renewal of the Fiduciary Liability Insurance policy for the period,2014-2015. The amount paid for the 2013-2014 policy was $3,855.00. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to renew the policy at a premium, not to exceed$4,000. AYES: Trustees Erickson,Fagan, Schlindwein, Fleishman and Kouba NAYS: None ABSENT: None There was another failed attempt to contact the Board Attorney's secretary via conference call. Oak Brook Firefighters'Pension Fund Minutes of Meeting—January 31,2014 Page 4 of 4 Trustee Erickson indicated that he would follow up after the meeting to set a hearing date for George Grodek's disability hearing, and will report the available dates to the Board, as soon as possible. The next joint(Fire and Police) special meeting for trustee training is on March 6th and 13`h, from 3:00—7:00 p.m. The next special meeting is scheduled for March 26, 2014 at 9:00 a.m.to review the actuarial report. The next regular Board meeting is scheduled for April 25, 2014 at 9:00 a.m. CLOSED SESSION—The Board agreed there was no need to hold a closed session. ADJOURNMENT A motion was made by Trustee Fleishman and seconded by Trustee Schlindwein to adjourn the meeting at 11:43 p.m. Motion carried by unanimous voice vote. Respectfully submitted, Michael Erickson, President John Fagan, Secretary Minutes prepared by Pension Services Administrator, Becky Davis All Checkbooks Oak Brook Firelighters' Pension Fund OAKBRKFIRE 10/01/13-12/31/13 Vendor Checks Report Page I 01/23/14 12:17 PM Vendor Name Chk.No. Check Date Amount GEORGE KOUBA* 20105 10/14/13 394.87 INVESTMENT PERFORMANCE SERVICES, 20106 10/14/13 16,857.99 LAUTERBACH&AMEN,LLP 20107 10/14/13 2,640.00 Subtotal 19,892.86 OAK BROOK BANK/IRS-EFTPS 11976 10/31/13 16,266.40 VILLAGE OF OAK BROOK 4021 10/31/13 9,519.12 Subtotal 25,785.52 INSPE ASSOC LTD 20108 11/14/13 3,750.00 NIAFPD 20110 11/14/13 315.00 REIMER&KARLSON LLC 20109 11/14/13 2,909.50 Subtotal 6,974.50 OAK BROOK BANK/IRS-EFTPS 12013 11/29/13 16,545.16 VILLAGE OF OAK BROOK 4026 11/29/13 9,519.12 Subtotal 26,064.28 INSPE ASSOC LTD 20111 12/06/13 3,870.00 LAUTERBACH&AMEN,LLP 20112 12/06/13 1,320.00 REIMER&KARLSON LLC 20113 12/06/13 2,200.00 Subtotal 7,390.00 INVESTMENT PERFORMANCE SERVICES, 20114 12/11/13 8,501.31 MB FINANCIAL BANK 50053 12/31/13 1,256.06 MB FINANCIAL BANK 50052 12/31/13 6,071.94 OAK BROOK BANK/IRS-EFTPS 12050 12/31/13 16,929.00 VILLAGE OF OAK BROOK 4031 12/31/13 11,073.60 Subtotal 35,330.60 TOTAL 129,939.07