Minutes - 04/19/2019 - Firefighter's Pension Fund BoardFO
VILLAGE OF OAK BROOK
BOARD OF TRUSTEES, FIREFIGHTERS' PENSICI.I FLJND
WEST WING CO FERENCE ROOM
OF TI{E BUTLER GOVIRNMENT CENTER
12OO OAK BROOK ROAD
OAK BROOK, IL 60523
630-368-5000
MINUTES OF A REGULAR MEETING
OF THE BOARD OF TRUSTEES OF THE
OAK BROOK FIREFIGHTERS' PENSION FTTND
APRIL L9,20r9
A regular meeting cf the Board of Trustees of the Oak Brook Firelighters' Pension Funcl was heid on
Thuisctay, Aprii- Ig,20Ig at 8:00 a.m., at the Butler Got ernment Center, West Wing Conference
Rcom, loiated at 1200 Oak Brook Road, Oak Brook, IL 60523, to conduct regular business pursuant
to notice.
ROLL CALL:
PRESENT:,. '
ABSFNT:
ALSO PRESENT
I .,..,
CALL TO ORDER: President Fagan called the rneeting to order at 8:00 a,m'
President John Fagan, Secretary Gino Picciola, Trustees Jim Bodony, Timothl'
Schlindwein and George l(ouba (arrived at 9:35 a,m.)
None
Jason Faprocki, Village Finance Director; Heidi Andorfer, Foster & Foster;
Dave Hai'ringiton, Sev.'er Falduto Asset Management, LLC; Attorney Itick
Reimer, Reimer & Dobrovolny, PC; Allie Rl,sell, tautertrach & Ame1, LLP
(L&A)
TRUSTEE CONTINUING EDUCATION SESSION:,AII TruStEES.AttCNdCd A ONE-hOUT TTSICC
h'aining education course from 8:00 a.m. to 9:00 a,m. pfesented by Mr. HarringtOn'
Ms. Rysell arrivcd at 9;00 a.m.
SWEARING OF JIM BODONY TO THE PENSION FUND BOARD OF TRUSTEBS: TTUSTCE
Bodony was sworn in by; the Village as a Board Trustee of the Oak Brook Firefighters' Pension Ftttrd
Board of Trustees.
A.TTORNEY'S REPORT _ REIMER & DOBROVOLNY, PC: ,SIAIUS UPdAIC - ANNU1I
Independent \t[edical Examination for JenniJbr ]tI. White.' Attomey Reimer pfcvitled an update
concerning the annual indepen<lent medical examination tbr Jennifer M. \\4lite. Attorney Reirner
inforrnerl ihe Board that Ms. White will be examinecl by Dr. Endicott on July 8,2Q19 arrd ihe medical
exarnination findings rnay be available for Board review at the next regular rneeting' A.ll questions
were answered by attornry Reimer. Further:discussion wili be held at the July 24,20';9 regular
meeting.
Review/Possible Approvat - QILDRO,s concerning Marc Il. Johnson and T'heodore W. Vassios;
Attorney Reimer piovided a status update regarcling the QILDR.O conceming llarc E' Johnson' The
Iloarcl acknowledgecl receipt of the QU.nnO concerning Marc E. Johnson and noted that a QILDRO
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April lg,20lg
Page 2 of 5
Calculation Order r,vill need to be prepared upon Firefighter Johnson's retirement. Trustee Fagan noted
that Firefighter Johnson does not intend on retiring in the near future. No ftirther Board action is needed
at this tirne.
Attorney Reimer provided a. status update regarding the QILDRO concerning Theodore W. Vassios.
The Board noted that Mr. Vassios has recently retired and his benefit calculation r,vill be reviewed later
in the meeting. The Board acknowledged receipt of the QILDRO conceming Theodore W. Vassios
and noted that a QILDRO Calculation Order will need to be prepared. Once received, the Board will
submit a copy to Attorney Reimer for his review and approval. Further discussion will be held aJ the
next regular meeting,
Trustee Kouba aruived at 9:35 a.m.
Review/Possible Approval - Pension Fund Administrative Rules and Regulations: Atlorney Reimer
reviewed the Fund's Aclministrative Rules and Regulations. The Board discussed amending Section
8Cl concerning the Annual Examination of Disabled Firefighters. All questions were answered by
Afforney Reimer. A motion was made by Trustee Fagan and seconded by TrLrstee Schlindwein to
approve the revised Administrative Rules and Regulations. Motion caruied unanimously by voice vote.
Agorney Reimer will revise the Administrative Rules and Regulations and send an amended cop;'to
the Board to adopt at the next regular meeting.
A motion r,vas made by Trustee Fagan ancl seconded by Trustee Schlindu'ein to sencl the revised
Administrative Rules and Regulations to all active members and beneficiaries of the Oak Brook
Firefighters' Pension Fund. Motion carried unanimousty by voice vote. The Board directed L&A to
send an electronic copy to all beneficiaries and dilected Trustee Picciola to send a copy to all active
members, once aclopted by the Board, Further discussion rvill be held at the next regular meeting.
Legul (lptlcrtes:The. R&D quartcrly Legal and Lcgislativc Upclate neu'sletl.er u'as distributed to the
Boarcl with information regarding recent casc decisions and legislation pertaining to Afticle 3 and 4
Pension Funds.
The Board took a brief recess at 9:58 s.m. at resumed at I0;07 a.m. Attorney Rei.nter left duringrecess'
PUBLIC COMI{ENT: There was no public comment'
INVESTMBNT REPORT _ SAWYER FALDI.]TO ASSET MANAGEMENT, LLC: QUATTCTIY
Investment Performance Report: Mr. Harrirrgton presented the Quarterly investment Peribrrnance
Report for the quarter ended March 31,2019, As of Match 3\,2019, the end;lg nrarket value of the
portfolio is $28,145,594. The total net account return is 9.09% for the quarter, for a first quarter
investnrent return of $2,357,828. The current portfolio allocation is F.quities at 6l%0, Fixed Income at
37.g% and Cash Equi-ralents at l.lYo. The individual performance of the funds within the portfolio
were reviewed, along with the Portfolio Value vs. Cumulative Net Investment Report, Market
Commentary, and Transaction Report. All questions were answered by Mr. Harringlon' A rnotion was
made by Trustee Schlindwein and seconded by Trustee Bodony to accept the Quarterly Investment
Perfcrmance Report as presented. Motion carried unanimously by voice vote'
Reviev,/lJpdate Investment Policy anC Approval of any Recommended Revisions" Mr. Harriirgton
rerriewerl th" Prc,posecl Investment Guideline Update regarding the proposed fixed income allocation'
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 19,2019
Page 3 of5
All questions were answered by Mr. Harrington. Further discussion will be held at the next regular
meeting.
Discussion/possible Action - Authorization to Transfer Tax Deposits to Schwab Account: The Board
discussecl the holdings in the Sohwab Bank Account. Further discussion will be held at the next regttlar
meeting.
Mr. Harrington left at l0:28 u.m'
AppROVAL OF MEETING MINUTES: January 17,2019 - Regular Meeting Minutes: The
minutes from the January 17 ,2019 regular meeting were revietved by the Board. A motion was made
by Trustee Schlindwein and seconded by Trustee Picciola to approve the January 17, 2019 regular
meeting minutes as written. Motion carried unanimously by voice vote'
Semi-Annua! Review of Closed Session Meeting Mintutes; The Board reviewed the closed session
minutes from the February I7,2017, July 20,2017 and July 19,2018 meetings. A motion was made
Uy fr6t6 Fagan and seconded by Trustee Picciola to approve and release the closed session meeting
minutes a, *ritten. Motion carried unanimously by voice vote'
ACCOUNTANT'S REPORT - LAUTERBACH & AI}IEN, LLPZ MONIuIY FiNANC\AI RCPOTT"LTUA
reviewed the Monthly Financial Report for the three-month period ended March 31,2019. As of March
3l,20Ig,the net position held in trust for pension benefits ii $28,616,749.66 rvith a positive change in
poritio,, 6f $2,2i5,580.21. The Revenue Report, ExRels9.R1Port, Payroll Journal, Cash Analysis
i{eport, and Member Contribution Repoft were reviewid with the Board'
presentatiop ancl Approval of Bitts; The Board reviewed the Vendor Check Report for tbe period
jr"i^i t,Z0l9 through tvtarcn 31,2079, shorving total clisbursetnents in the arnount of $105,527 '69'
A motion was marle 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 Report
in the amount of $105,527.69. Motion carried by roll callvote'
AYES: Trustees Fagan, Picciola, Schlindrvein, Bodony and Kouba
NAYS: None
ABSENT: None
Additional Bills, if
Foster in the amount of $3,500 for the preparation of the January 1, 2019 actuarial valuation and report'
A rnotion was made by TrUstee Fagan and seconded by Trustee Bodony to approve
invoice as presented. Motion carried by roll call vote'
AYES: Trustees Fagan, Picciola, schlindrvein, Bodony and Kouba
NAYS: None
ABSENT: None
the payment of the
Iltinois Department of Insurance Compliance Fee: The Board noted that the Illinois Department of
Insurance bompliance Fee invoice lvilf be issued. A motio;r rvas made by Trustee Fagan and seconded
hy Trustee picciola to approve payrnent of the IDOI Compliance Fee upon receipt of the invoice'
Motion carried by roll callvote.
Oak Brook Firefighters' Pension Fund
Minutes of Meeting - April 19,2019
Page 4 of 5
Trustees Fagan, Picciola, Schlindwein, Bodony and Kouba
None
None
TRUSTEE TRAINING UPDATES: The Board revierved the Trustee Training Sumn:rary and
discussed upcoming training opportunities'
Approval of Trustee Training Registration Fees and Reimbursable Expenses: There were 11o
registration fees or reimbursabie .*p.n.". for review. The Board noted that all Truqtees are allending
th;2olg IpFA Spring pension Seminar on May 3,2019 to obtain 8-hours of continuing education.
Trustees were remindecl to submit all training certificates to L&A for recordkeeping.
COMMUNICATIONS OR REPOF{TS: Affidavits of Continued Eligibility: The Board noted that
L&A will mail Affidavits of Continuecl Eligibility to ali pensioners with the June payroll cycle. The
Board directed L&A to mail pensioner Ge-rge M. Grodek his affrdavit via certified mail. A status
update rvill be provided at the next regular meeting.
Statertertts of Economic Interest: The Board was reminded that the Staternents of Economic Interest
are due by May 1,2019'
APPLICATIONS FOR. MEMBERSI{IP OR WITHDRAWALS FROM THI} FUND: TTUSTEE
picciola informed the Board that Eric Focht was hired on April 11,2019. The Board will review
Firelighter Focht's Application for Membership at the next regular meeting'
APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITSZ ' PPTOVAI Of IICgUIAT
Retirement Benefits - Theodore w. vassios: The Board reviewed the regular retirement benef-rt
calculation for Theodore W. Vassios preparecl by L&A. Lieutenant Vassios had an entry date o{tp1
2g, 1980, retirenren[ tlate of February 26,201d, cffcctive date of pension of Febrttary ?,7,2'fi19, 62
years of
'age
at date of retirement, 38 years and 9 months of creditable service,.applicable salarl' of
'$t't t,ZtZ.dS, applicable pension percentage of 75Yo, amount of.originaily granted monthly pension-of
$6,950.75 ancl arnount of originally graniecl annual pension of $83,409'00. A motion was made by
Trustee Fagan and seconded b-y Trustee Picciola to approve Theodore W. Vassios' regular retirement
benefit as calculated by L&A. Motion caffied by roll call vote.
AYES: Trustees Fagan, Picciola, schlindwein, Bodony and Kouba
NAYS: None
r\BSENT: None
OLD BUSINESS: Status (Jpdate - A4B Finatrciol Checking Account; Trustee Fagan infonned tlre
Board that he dicl nct have a status update at this time concerning the holdings in the IMts Financial
Checking Account. Further discussion will be held at the next regular meeting'
NEW BUSINESS: IDOI Annual Statement.'The Board reviewed the draft IDOI Annual Statement, as
prepared by L&A. Tnrstee Bodony recommendecl an amenclment to the cover page 1o reflect that
irust"" nagan is listed as the Board Presiclont. A motion was made by Trustee Bodony and seconded
by Trustee-Schlinclwein to approve the IDOI Annnal Statement, as amended, a1C. to authorize Trustee
Ragan as the authorized rign". on the Certification Fotm. Motion carried unanirnously by voice voie'
L&A will file the IDOI Annual Statement on belralf of the Board of Trustees of the Oak Broolt
Firefighters' pension Fund. A status update will be provided at the next regular meeting,
AYES:
NAYS:
ABSENT:
Oak Brook Firefighters' Pension Fund
Mintrtes of Mceting - April 19,2019
Page 5 of5
Review Preliminary Actuarial Valuation - Foster & Foster, Inc.: Mts,,Andorfer reviewed the
preli'rinary Actuaiial Valuation prepared by Foster & Foster with the Board. All questions were
answered by lvtrs. Anclorfer. A motion was made by Trustee Fagan and seconded by Trustee Picciola
to accept the Actuarial Valuation as prepared. Motion caried unanimouslYlby voice vote. The final
report will be reviewed by the Board at the next regular meeting'
Expenditure for New Key Box - Pension Files: Trustee Fagan informed the Board that a new key box
is needed for the Fund's pension files. The cost to replace the key box shall not exceed $50, A motion
was made by Tlrstee fagan and seconded by Trustee Picciola to approve the purchase of a new key
box for the pension files in an amount not to exceed $50. Motion carried by roll call vote,
AYES: Trustees Fagan, Picciola, Schlindwein, Bodony and Kouba
NAYS: None
ABSENT: None
Reyietry/possible Approval - Fiduciary Liabilifit Insurance Renewal: Trustee Fagan informed the
Roard that the Fund's fiduciary liability insurance policy will expire April 30,__2019' Trustee Fagan
reviewed a renewal qgote providecl by Mesirow Insurance Services through Ullico Casualty Group'
The proposed renewal fee for the one-year policy is $4,435- A motion was made by Trustee Bodony
and seconclecl hy Tlrstee Schlindwein to approve payment of the ficluciary liability insurance renewal
effective in the amount of $4,435, upon thi receipt of the invoice. Motion carried by roll callvote'
AYES: Trustees Fagan, Picciola, schlindwein, Bodony and l(ouba
NAYS: None
ABSENT: None
cLosED SESSION,IF NEEDED: There was no need for closed session.
rl n ,
NEW BUSINESS (CONTINUED); Trustee Kouba reviewed his term with the Board and noted that
he intends on stepping clown as Board Trustee once his tcrm cxpircs on April30,2020'
ADJOIJRNMENT: A motion was made b)' Trustee Fagan and seconded by Trustee Picciola to
acljoum the meeting at 1l:47 a.m. Motion carried unanimously by voice vote'
The next regular meeting of the Oak Brooh Firefighters' Pension Ftrnd will be hetd on
Wednesclay, luly 24,201tg;t8:00 a.m. at the Butler Government Center, West Wing Conference
Roorn locnied at lZ00 Oak Brooh Road, Oak Brook, IL 60523.
Re,s p e c tJu I ly sub m itte d,
Board President or Lary
2 --2,+- /?
Date Approved
I{inutes preparect by Allie Rysell, Pension service,s Adminisftator, Lautetbttch & Anten, LLP