Minutes - 07/24/2019 - Firefighter's Pension Fund Board*
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VILLAGE OF OAK BROOK
BOARD OF TRUSTEES, FIREFIGHTERS, PENSION FUND
WI G CONFERENCE
OF THE BUTLER GOVERNMENT CENTER
]"200 OAK BROOK ROAD
OAK BROOK, IL 60523
630-368-5000
MINUTES OF A REGULAR MEETING
OF THE BOARD OF TRUSTEES OF THE
OAK BROOK FIREFIGHTERSO PENSION FUND
JULY 24,2019
A regular meeting of the Board of Trustees of the Oak Brook Firefighters' Pension Fund was held on
Thursday, July 24r 2019 at 8:00 a.m., at the Butler Government Center, West Wing Conference
Room, located at 1200 Oak Brook Road, Oak Brook, IL 60523, to conduct regular business pursuant
to notice.
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 Jim Bodony and
Timothy Schlindwein
Trustee George Kouba
Jason Paprocki, Village Finance Director; Heidi Andorfer, Foster & Foster;
Tom Sawyer, Sawyer Falduto Asset Management, LLC; Derek Flessner, Allie
Rysell and Jennifer Flores, Lauterbach & Amen, LLP (L&A)
TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Picciola, Bodony and
Schlindwein attended a one-hour Trustee training education course from 8:00 a.m. to 9:00 a'm.
presented by Mr. Sawyer.
Mr. Flessner, Ms. Rysell and Ms Flores arrived at 9"00 a'm.
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MINUTES: April 19, 2019 Regular Meeting Minutes: The minutes
from the April lg, 20lg regular meeting were reviewed by the Board. Trustee Schlindwein
recommended an amendment to the Trustee Continuing Education Session to indicate that Trustee
Kouba was not present for the one-hour training course. A motion was made by Trustee Fagan and
seconded by Trustee Schlindwein to approve the April 19,2019 regular meeting minutes as amended.
Motion carried unanimously by voice vote.
TNVESTMENT REPORT - SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly
Investment Performance Report; Mr. Sawyer presented the Quarterly Investment Performance Report
for the quafter ended June 30, 2019. As of June 30,2019, the ending market value of the portfolio is
529,024,340. The total net account return is3.l2Yo for the quarter, for a second quarter investment
return of $892,644. The current portfolio allocation is Equities at 60.2Yo, Fixed Income at38'60/o and
Cash Equivalents at l.lYo.The individual performance of the funds within the portfolio were reviewed,
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Meeting Minutes - July 24,2019
Page 2 of 6
along with the Portfolio Value vs. Cumulative Net Investment Repoft, Market Commentary, and
Transaction Report. All questions were answered by Mr. Sawyer. A motion was made by Trustee
Fagan 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
presented an updated investment policy prepared by Sawyer Falduto Asset Management, LLC. The
Board reviewed and discussed the proposed policy. Discussion topics included updated formatting,
definitions, equity diversification and the fixed income allocation. All questions were answered by Mr.
Sawyer. A motion was made by Trustee Schlindwein and seconded by Trustee Fagan to accept the
updated investment policy as presented. Motion carried unanimously by voice vote.
The Board adopted the investment policy and directed L&A to file an electronic copy with the Illinois
Department of Insurance within 30 days of execution.
ACCOUNTANT'S REPORT - LAUTERBACH & AMEN, LLP= IDOI Annual Statement: Mr.
Flessner noted that the IDOI Annual Statement was filed with the Illinois Department of Insurance on
April 20. 2019.
Mr. Flessner reviewed the Illinois Department of Insurance's Siren dated April 4,2019 and noted that
the Division has added a nominated beneficiary information section to the annual statement filing
requirement. The Fund will now be required to enter spousal names, birthdates, gender and the date of
marriage for all retired members, in addition to a new list of interrogatory questions. All questions
were answered by Mr. Flessner.
Discussion/Possible Action - Authorization to Transfer Tax Deposits to Schwab Bqnk Account: Mt'
Flessner reviewed the Cash Flow Report with the Board from January 1,2017 through May 3 1,2019,
The Board discussed the holdings in the Schwab Bank Account with Mr. Flessner and Mr. Sawyer. All
questions were answered by Mr. Flessner and Mr. Sawyer. A motion was made by Trustee Picciola
and seconded by Trustee Fagan to maintain a balance of $15,000 in the Harris Bank account and to
deposit all future tax deposits and employee contributions into the Schwab Bank account. Motion
carried by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein and Bodony
NAYS: None
ABSENT: Trustee Kouba
Monthty Financial Report;Mr, Flessner informed the Board thatL&A has not yet received the Pension
Fund's MB Financial Bank statements from June 2019 due to the merger with Fifth Third Bank. Once
received, the June Financial Report will be prepared and issued to the Board for review. Mr. Flessner
reviewed the Monthly Financial Report for the five-month period ended May 31,2019. As of May 31,
2019, the net position held in trust for pension benefits is $28,128,609.55 with a positive change in
position of $1,727,440.10. The Revenue Report, Expense Report, Payroll Journal, Cash Analysis
Report, and Member Contribution Report were reviewed with the Board. All questions were answered
by Mr. Flessner.
Presentation and Approval of Bitls; The Board reviewed the Vendor Check Report for the period
March l,20Ig through May 31,2019, showing total disbursements in the amount of $113,266.05.
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Meeting Minutes - July 24,2019
Page 3 of6
Additional Bilts, tf any; Baker Tilly Virchow Krause, LLP Invoice.' The Board reviewed Baker Tilly
Virchow Krause, LLP invoice #8T1393548 issued to the Village of Oakbrook in the total amount of
$18,000 for the preparation of the December 37,2018 financial statement audit, Mr. Paprocki noted
that the total amount has been paid by the Village and requested that the Oak Brook Firefighters'
Pension Fund submit payment to the Village in the amount of $2,610 for their portion of the audit.
Reimer & Dobrovolny, PC Invoice; The Board reviewed Reimer & Dobrovolny, PC (R&D) invoice
#25111 in the total amount of $2,757.45 for legal services rendered for the month of May 2019.
A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve reimbursement to
the Village in the amount of $2,610 and to approve payment of the R&D invoice as presented. Motion
carried by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein and Bodony
NAYS: None
ABSENT: Trustee Kouba
A motion was made by Trustee Fagan and seconded by Trustee Bodony to accept the Monthly
Financial Report as presented and to approve the disbursements shown on the Vendor Check Report
in the amount of $113,266.05. Motion carried by rollcallvote'
AYES: Trustees Fagan, Picciola, Schlindwein and Bodony
NAYS: None
ABSENT: Trustee Kouba
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 Fagan, Picciola,
Schlindwein and Bodony are interested in attending the 2019 IPFA Fall Pension Seminar on November
l,20lg to obtain 8-hours of continuing education. L&A will register the Trustees on behalf of the
Board.
COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility.' The Board noted that
L&A mailed Affidavits of Continued Eligibility to all pensioners with the June payroll cycle and a due
date of July 31,2019. The Board directed L&A to email second request affidavits to the outstanding
pensioners. Status updates will be provided to the Board as they become available.
L&A informed the Board that an affidavit of continued eligibility was not received from pensioner
George M. Grodek prior to his passing, but noted that updated contact information was received from
his surviving spouse, Margaret A. Grodek. The Board directed L&A to delay issuing an affidavit of
continued eligibility to Mrs. Grodek until June 2020'
Active Member File Maintenance; The Board noted that L&A will prepare Active Member File
Maintenance letters for distribution to all active members requesting any additional pension file
documents.
APPLICATIONS FOR MEMBERSHIP OR WITHDRAWALS FROM THE FUND: Application
for Membership - Eric Focht:The Board reviewed the Application for Membership submitted by Eric
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Meeting Minutes - July 24,2019
Page 4 of 6
Focht. A motion was made by Trustee Fagan and seconded by Trustee Schlindwein to accept Eric
Focht into the Oak Brook Firefighters' Pension Fund effective April 11,2019, as a Tier II participant'
Motion carried unanimously by voice vote.
Deceased Member - George M. Grodek: The Board noted that pensioner George M. Grodek passed
away on May 21,2019 and he has a surviving spouse, Margaret A. Grodek. A motion was made by
Trustee Fagan and seconded by Trustee Picciola to acknowledge the passing of George M. Grodek on
May 21,2019. Motion carried unanimously by voice vote'
APPLICATIONS FOR RETIREMENT OR DISABILITY BENEFITS: Approval of Surviving
Spouse Benefits - Margaret A. Grodek;The Board reviewed the surviving spouse benefit calculation
for Margaret A. Grodek with an effective date of May 22,2019 for a monthly benefit of 53,742.15
with no additional increases. A motion was made by Trustee Fagan and seconded by Trustee Picciola
to approve the surviving spouse benefit of Margaret A. Grodek as calculated by L&A. Motion carried
by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein and Bodony
NAYS: None
ABSENT: Trustee Kouba
OLD BUSINESS: Status Update - Closing of the MB Financial Checking Account/Balance to Schwab
Account; Trustee Fagan provided a status update to the Board concerning the holdings in the MB
Financial checking account. Trustee Fagan sent correspondence to Fifth Third Bank on July 17,2019
to request the closure of the MB Financial checking account. A cashier's check will be issued to the
Pension Fund in the near future, A motion was made by Trustee Fagan and seconded by Trustee
Picciola to authorize Sawyer Falduto Asset Management, LLC to deposit the cashier's check into the
Schwab Bank account once received. Motion carried by roll call vote.
AYES: Trustees Fagan, Picciola, Schlindwein and Bodony
NAYS: None
ABSENT: Trustee Kouba
NEW BUSINESS; Execute Approved Administrative Rules and Regulations Signature Page: The
Board reviewed the Administrative Rules and Regulations for the Oak Brook Firefighters' Pension
Fund that were approved at the April 79, 2019 meeting. A motion was made by Trustee Fagan and
seconded by Trustee Schlindwein to adopt the Pension Fund's Administrative Rules and Regulations.
Motion carried unanimously by voice vote.
The Board directed L&A to file an electronic copy with the Illinois Department of Insurance and to
provide an electronic copy to Attorney Reimer for his records. L&A will send an electronic copy to all
beneficiaries and Trustee Picciola will send an electronic copy to all active members for review.
Review Approved Foster & Foster Actuarial Valuation and Contribution Requesf: The Board has not
yet received the final Actuarial Valuation from Foster & Foster. Trustee Fagan will contact Foster &
Foster for a status update. Further discussion will be held at the next regular meeting.
Review/Adopt - Municipal Compliance Report;L&A requested a copy of the final Actuarial Valuation
in order to prepare the Municipal Compliance Report for Board's review and approval at the next
regular -".iing. Trustee Fagan will send the final report to L&A upon receipt. Further discussion will
be held at the next regular meeting.
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Meeting Minutes - July 24,2019
Page 5 of6
Board Officer Elections - President and Secretary: Trustee Bodony nominated Trustee Fagan as Board
President and Trustee Picciola as Board Secretary. A motion was made by Trustee Bodony and
seconded by Trustee Fagan to close the nominations for the Board Officer Elections. Motion carried
unanimously by voice vote.
A motion was made by Trustee Bodony and seconded by Trustee Schlindwein 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 Bodony and seconded by Trustee Picciola to maintain the
FOIA Officer and OMA Designee positions as stated, Motion carried unanimously by voice vote.
ATTORNEY,S REPORT - REIMER & DOBROVOLNY, PC: Status Update - Annual
Independent Medical Examination for Jennifer M. White.' Trustee Fagan informed the Board that
Jennifer M. White was examined by Dr. Endicott on July 8,2019 and the medical examination findings
will be available for Board review at the next regular meeting.
Review/Approval - QILDROs concerning David B. Corkey and Theodore W. Vassios,' Trustee Fagan
provided a status update regarding the QILDRO concerning Theodore W. Vassios. The Board
ieviewed correspondence from Attorney Reimer dated April 29,2019 indicating that a certified copy
of the QILDRO Calculation Order was received for his review. Attorney Reimer indicated that the
Pension Fund should begin issuing payment to the alternate payee pursuant to the terms of the QILDRO
and Calculation Order beginning with the May payroll cycle, A motion was made by Trustee Fagan
and seconded by Trustee Picciola to approve the QILDRO and Calculation Order for Theodore W.
Vassios and to direct L&A to issue payments to the alternate payee. Motion carried by roll call vote,
AYES: Trustees Fagan, Picciola, Schlindwein and Bodony
NAYS: None
ABSENT: Trustee Kouba
Trustee Fagan provided a status update regarding the QILDRO concerning David B' Corkey. The
Board acknowledged receipt of the QILDRO and Consent concerning David B. Corkey and noted that
a QILDRO Calculation Order will need to be prepared upon Firefighter Corkey's retirement. No Board
action is required at this time.
Legal Updates;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 Schlindwein to
adjourn the meeting at l0:16 a.m. Motion carried unanimously by voice vote.
The Board determined that the next regular meeting will be rescheduled from Thursday, October 17,
2019 to Thursday, October 31,2019. Trustee Fagan will notify the Village of the rescheduled meeting
date.
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Meeting Minutes - July 24,2019
Page 6 of6
The next regular meeting of the Oak Brook Firefighters' Pension Fund will be held on Thursday'
October 31,2019 at 8:00 a.m. at the Butler Government Centero West Wing Conference Room
located at 1200 Oak Brook Road, Oak Brook' IL 60523.
Re sp e c tful ly s ub m itte d,
to /r, /t 't
President or Secretary Dale Apfroved
Minutes prepared by Allie Rysell, Pension Services Administrator, Lauterbach & Amen, LLP