Minutes - 10/18/2018 - Firefighter's Pension Fund BoardFO
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VILLAGE OF OAK BROOK
BOARD OF TRUSTEES, FIREFIGHTERS' PENSION FUND
NFERENCE
OF THE BUTLER GOVERNMENT CENTER
I2OO OAK BROOK ROAD
OAK BROOK, IL 60523
630-368-5000
MINUTES OF'A REGULAR MEETING
OF'THE BOARD OF'TRUSTEES OF'THE
OAK BROOK FIREF'IGHTERSO PENSION FUND
ocToBER 180 2018
A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on
Thursday, October 18, 2018 at 8:00 a.m., at the Butler Government Center, West Wing Conference
Room, located at 1200 Oak Brook Road, Oak Brook, IL 60523, pursuant to notice, to conduct regular
business.
CALL TO ORDER: President Fagan called the meeting to order at 8:00 a.m
ROLL CALL:
PRESENT:
ABSENT:
ALSO PRESENT:
President John Fagan, Secretary Gino Picciola, Trustees George Kouba, Jim
Bodony and Timothy Schlindwein
None
Tom Sawyer, Sawyer Falduto Asset Management, LLC; Jason Paprocki,
Village Treasurer; Sam Meyer and Allie Rysell, Lauterbach & Amen, LLP
(L&A)
TRUSTEE CONTINUING EDUCATION SESSION: All Trustees affended a one-hour Trustee
training education course from 8:00 a.m. to 9:00 a.m. presented by Mr. Sawyer.
Mr. Paprocki and Ms. Rysell arrived to the meeting at 9:00 a.m.
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MINUTES: July 19, 2018 - Regular Meeting Minutes: The minutes
from the July 19, 2018 regular meeting were reviewed by the Board. A motion was made by Trustee
Kouba and seconded by Trustee Bodony to approve the July 19,2018 regular meeting minutes as
written. Motion caried unanimously by voice vote.
Mrs. Meyer arrived to the meeting at 9:05 a.m.
INVESTMENT REPORT - SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly
Investment Performance Report: Mr. Sawyer presented the Quarterly Investment Performance Report
for the quafier ended September 30,2018. As of 09/30118, the ending market value of the portfolio is
928,176,007. The total net account return is 4.06% for thc quarter, for the third quarter investment
return of $742,827. The total net account return for the year-to-date is 7.75o/o, underperforming the
policy benchmark of 8.76Yo. The current portfolio allocation is Equities at 62.2%o, Fixed Income at
36.40 , and Cash Equivalents atl.4%o. The individual performance of the funds within the portfolio
were reviewed, along with the firm's Portfolio Value vs. Cumulative Net Investment Report, Market
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - October 18, 2018
Page2 of 5
Commentary, and Transaction Report. All questions were answered by Mr. Sawyer. A motion was
made by Trustee Kouba and seconded by Trustee Schlindwein to accept the Quarterly Investment
Performance Report as presented. Motion carried unanimously by voice vote.
Review/Update Investment Policy and Approval of any Recommended Revisions: Mr. Sawyer reviewed
the Investment Policy Guidelines with the Board. There were no recommendations for revisions at this
time. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to maintain the
Investment Policy Guidelines. Motion carried unanimously by voice vote.
ACCOUNTANT'S REPORT - LAUTERBACH & AMEN, LLPI Monthly Financial Report: L&A
reviewed the Monthly Financial Report for the eight month period ended August 31,2018, As of
08/31/18, the net position held in trust for pension benefits is $28,844,5 57.41 with a positive change
in position of $751,068.16. The Revenue Report, Expense Report, Payroll Joumal and Member
Contribution Report were reviewed with the Board. The Cash Analysis Report was reviewed in detail.
Mr. Sawyer discussed the holdings in the BMO Hanis Bank account and recommended the Board
decrease the balance to use those funds for investment purposes. Trustee Fagan noted that the BMO
Haris Bank account is used for the purposes of issuing pension payments and discussed various
options for managing the account with Mr. Sawyer. The Board directed Mr. Sawyer to discuss the cash
flow and holdings in the BMO Harris Bank account with Mr. Flessner. Further discussion will be held
at the next regular meeting.
Presentation and Approval of Bilts: The Board reviewed the Vendor Check Report for the period
0Tl0lllSthrough 08/31/18, showing total disbursements in the amount of $105,558.84.
A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept the Monthly
Financial Report as presented and to approve the disbursements shown on the Vendor Check Repoft
in the amount of $105,558.84. Motion camied by roll call vote.
AYb,S: 'l'rustees -F'agan, Picciola, Schlindwein, Bodony and Kouba
NAYS: None
ABSENT: None
Additional Bills, tf any: There were none at this time.
TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and
discussed upcoming training opportunities. Trustees were reminded to submit all training certificates
to L&A for recordkeeping.
Approval of Trustee Training Registration Fees and Reimbursable Expenses: Trustees Bodony, Kouba
and Schlindwein informed the Board that they are interested in attending the 2018 IPFA Fall Pension
Seminar on Novemb er 2nd. A motion was made by Trustee Fagan and seconded by Trustee Picciola to
approve the payment of the registration fees for Trustees Bodony, Kouba and Schlindwein to attend
tne ZOtg IPFA Fall Pension Seminar on November2nd. Motion carried by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein, Bodony and Kouba
NAYS: None
ABSENT: None
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - October 18, 2018
Page 3 of5
COMMUNICATIONS OR REPORTSz Annual Affidavits of Continued Eligibility: L&A informed
the Board that George Grodek is the only pensioner that has not submitted is Affidavit of Continued
Eligibility.
Discussion/Possible Action - George Grodek: A motion was made by Trustee Fagan and seconded by
Trustee Schlindwein to direct Attorney Reimer to mail corespondence notifuing George Grodek that
his direct deposit will be converted to a physical check that will be held at Oak Brook Fire Station 94
if he does not submit his completed affidavit by November l5th. Motion carried by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein, Bodony and Kouba
NAYS: None
ABSENT: None
A status update will be provided to the Board once available. Further discussion will be held at the
next regular meeting.
APPLICATIONS FOR MEMBERSHIP OR WITHDRAWALS FROM THE FUND: ThETC WETE
no applications for membership or withdrawals from the Fund at this time.
APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITS: ThETC WETE NO
applications for retirement or disability benefits at this time.
The Board took a brief recess at 9:43 a.m. and resumed open session at 9:53 a'm'
OLD BUSINESS: Board Officer Elections - President and Secretary: The Board discussed the Board
Officer positions. A motion was made by Trustee Schlindwein and seconded by Trustee Bodony to
nominate Trustee Fagan as President and Trustee Picciola as Secretary. Motion camied unanimously
by voice vote.
BMO Harris Bank Signature Cards and Resolution lJpdate; L&A provided the Board with the
necessary forms to update the signers on the BMO Hamis Bank account with the current Board
members and municipal representative. These new forms will also remove L&A as signers on the
account. The Board will obtain signatures and submit the completed forms to L&A to update with
BMO Harris Bank.
Status Update - MB Financial Checking Account:Trustee Fagan informed the Board that he did not
have a status update at this time. Further discussion will be held at the next regular meeting.
Discussion/Possible Action - Distribution of Pension Fund Documents: Trustee Bodony informed the
Board that he would like to share the Accountant's Report and Investment Report with pensioners of
the Oak Brook Firefighters' Pension Fund on a quarterly basis. The Board held a discussion regarding
this request. All questions were answered by L&A, Mr. Sawyer and Trustee Bodony. Trustee Bodony
wilf send L&A email addresses for all pensioners that are interested in receiving the quarterly reports.
L&A will send the September 30, 2018 reports and all future quarterly reports to pensioners of the Oak
Brook Firefighters' Pension Fund, per the request of the Board.
NEW BUSINESS z Review/Approve - Lauterbach & Amen Engagement Letter: The Board reviewed
the L&A Engagement Leffer for the years ended December 3I,2019 through December 37,2023.The
Board discussed the fee structure and language in the engagement letter with L&,4. Trustee
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - October 18, 2018
Page 4 of5
Schlindwein recommended the Board add a termination clause to the engagement letter and seek
further clarification on the fee structure. All questions were answered by L&A. The Board will hold a
special meeting on Friday, November 9th at 9:00 a.m. to review and approve the revised engagement
letter.
Review/Approve - Foster & Foster Actuarial Valuation: The Board reviewed the ActuarialValuation
as prepared by Foster & Foster. Based on the data and assumptions, the recommended municipal
contribution is$2,255,2SSandthestatutoryminimumcontributionamountis$1,923,411.
Contribution Request: The Board discussed requesting a municipal contribution from the Village of
Oak Brook.
A motion was made by Trustee Fagan and seconded by Trustee Picciola to accept the Actuarial
Valuation as prepared and to request a contribution in the amount of $2,255,288 from the Village of
Oak Brook based on the recommendation of Foster & Foster. Motion carried by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein, Bodony and Kouba
NAYS: None
ABSENT: None
Review/Adopt - Municipal Compliance Report: The Board reviewed the Municipal Compliance Report
prepared by L&A. A motion was made by Trustee Fagan and seconded by Trustee Picciola to adopt
the MCR as prepared and to authorize signatures by the Board President and Secretary. Motion canied
unanimously by voice vote.
A motion was made by Trustee Fagan and seconded by Trustee Picciola to direct L&A to send the
ActuarialValuation and signed copy of the MCR to Afforney Reimer to submit to the Village of Oak
Brook on behalf of the Oak Brook Firefighters' Pension Fund. Motion carried by roll call vote.
AYES: 'l'rustees -F'agan, Picciola, Schlindwein, Bodony and Kouba
NAYS: None
ABSENT: None
Establish 2019 Board Meeting Dates: The Board established the 2019 Board meeting dates as January
l7th, April 18th, July l8th and October l7th at 8:00 a.m. at the Butler Government Center, West Wing
Conference Room, located at 1200 Oak Brook Road, Oak Brook, lL 60523.
ATTORNEY'S REPORT - REIMER & DOBROVOLNY, PCz Review/Applove - Revised
Administrative Rules and Regulations: The Board reviewed the revised Administrative Rules and
Regulations. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept
the Administrative Rules and Regulations as presented. Motion carried unanimously by voice vote.
Annual Independent Medical Examination - Jennifer M. Ilrhite: The Board discussed sending Jennifer
M. White for her annual independent medical examination. Trustee Fagan reviewed correspondence
received from Ms. White concerning her annual IME. A motion was made by Trustee Kouba and
seconded by Trustee Picciola to direct Trustee Bodony to locate potential resources in Hawaii to
conduct the annual IME for Jennifer M. White. Motion canied unanimously by voice vote. The Board
will review the results of Trustee Bodony's findings at the November 9th special meeting to determine
appropriate action. Further discussion will be held at the next regular meeting.
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - October 18, 2018
Page 5 of5
Legal {Jpdates: The R&D quarterly Legal and Legislative Update newsletter was distributed to the
Board with information regarding recent case decisions and legislation pertaining to Article 3 and 4
Pension Funds.
CLOSED SESSION,IF NEEDED: There was no need for closed session.
ADJOURNMENT: A motion was made by Trustee Fagan and seconded by Trustee Bodony to
adjoum the meeting at 11:05 a.m. Motion caried unanimously by voice vote.
The next regular meeting of the OakBrookFirefighters' Pension Fund will be held on Thursday'
January 17 r 2019 at 8:00 a.m. at the Butler Government Centero West Wing Conference Room
Iocated at 1200 Oak Brook Road, Oak Brook' lL 60523.
submitted,
rln lPt
agan)President oate App{oueO
Minutes prepared by Allie Rysell, Pension Services Administrator, Lauterbach & Amen, LLP