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Minutes - 10/31/2019 - Firefighter's Pension Fund BoardVILLAGE 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 OCTOBER 31, 2019 A regular meeting of the Oak Brook Firefighters’ Pension Fund Board of Trustees was held on Thursday, October 31, 2019 at 8:00 a.m. at the Butler Government Center, West Wing Conference Room, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523, pursuant to notice. CALL TO ORDER: President Fagan called the meeting to order at 8:00 a.m. ROLL CALL: PRESENT: President John Fagan, Secretary Gino Picciola and Trustee Jim Bodony ABSENT: Trustee Timothy Schlindwein ALSO PRESENT: Village Finance Director Jason Paprocki, Village of Oak Brook; Tom Sawyer, Sawyer Falduto Asset Management, LLC; Derek Flessner and Jennifer Flores Lauterbach & Amen, LLP (L&A) TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Picciola and Bodony attended a one-hour Trustee training education course from 8:00 a.m. to 9:00 a.m. presented by Mr. Sawyer. RESIGNATION OF APPOINTED MEMBER – GEORGE KOUBA: The Board noted that George Kouba has resigned from his position on the Oak Brook Firefighters’ Pension Board. A request to fill the one of the two appointed member positions has been sent to the Village. Further discussion will be held at the next regular meeting. Status Update – Request of New Appointed Member: The Board discussed the status of their request to fill one of the appointed member positions on the Board of Trustees. Further discussion will be held at the next regular meeting. PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: July 24, 2019 Regular Meeting: The Board reviewed the the July 24, 2019 regular meeting minutes. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve the July 24, 2019 regular meeting minutes as written. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes for review. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly Investment Performance Report: Mr. Sawyer presented the Quarterly Investment Performance Report for Oak Brook Firefighters’ Pension Fund Meeting Minutes – October 31, 2019 Page 2 of 3 the period ending September 30, 2019. As of September 30, 2019, the third quarter net return is 1.05% versus the third quarter account benchmark of 1.33%. The investment return for the quarter is $320,371 for an ending market value of $29,347,556. The current asset allocation is as follows: fixed income at 39.5% and equities at 60.5%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. Review/Update Investment Policy: The Board discussed the Investment Policy and determined no changes are required at this time. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report and Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the nine-month period ended September 30, 2019 prepared by L&A. As of September 30, 2019, the net position held in trust for pension benefits is $29,778,619.42 for a change in position of $3,377,449.97. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal and the Vendor Check Report for the period July 1, 2019 through September 30, 2019, for total disbursements in the amount of $115,569.95. 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: There were no trustee training registrations or reimbursable expenses presented for approval. COMMUNICATIONS AND REPORTS: Affidavits of Continued Eligibility: L&A informed the Board that third request Affidavits of Continued Eligibility were mailed to pensioners via certified mail on September 23, 2019 with a due date of October 14, 2019. To date, one affidavit remains outstanding. The Board directed L&A to send correspondence to the outstanding pensioner providing notice that their monthly direct deposit benefit will be converted to a physical check with the November 2019 payroll cycle and will be held by Trustee Fagan, until a completed affidavit is received. Further discussion will be held at the next regular meeting. APPLICATIONS FOR MEMBERSHIP/ WITHDRAWALS FROM THE FUND: There were no applications for membership or withdrawals from the Fund. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: The Board noted that Lieutenant Michael Erickson submitted his application for a regular retirement benefit. Calculations to determine retirement benefits for Michael Erickson are in process. L&A will provide the Board with a regular retirement benefit for approval. Further discussion will be held at the next regular meeting. OLD BUSINESS: Review Approved Foster & Foster Actuarial Valuation: The Board reviewed the finalized Actuarial Valuation as prepared by Foster and Foster. Based on data and assumptions, the recommended municipal contribution is $2,618,218 and the statutory minimum contribution amount is $2,251,292. A motion was made by Trustee Fagan and seconded by Trustee Picciola to accept the Actuarial Valuation as prepared. Motion carried unanimously by voice vote. Contribution Request: This item was previously discussed under “Review Approved Foster & Foster Actuarial Valuation”. Oak Brook Firefighters’ Pension Fund Meeting Minutes – October 31, 2019 Page 3 of 3 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 authorized signatures by the Board President and Secretary. Motion carried unanimously by voice vote. Annual Independent Medical Examination – Jennifer M. White: Jennifer M. White was examined by Dr. Endicott on July 8, 2019 and the examination determined that Jennifer M. White remains disabled. A motion was made by Trustee Fagan and seconded by Trustee Picciola to continue Jennifer M. White’s disability benefits based on a finding that she remains disabled and subject to further annual examinations until age 50. Motion carried unanimously by voice vote. NEW BUSINESS: Military Service Purchase – David R. Kaczmarczyk: The Board noted that L&A sent correspondence to David R. Kaczmarczyk regarding his request to calculate the amount of money due the Oak Brook Firefighters’ Pension Fund to purchase 24-months of military service time, but no response has been received to date. No further action is required by the Board at this time. Creditable Service Purchase – Sarie T. Lorence: The Board noted that the balance due from Sarie T. Lorence to the Oak Brook Firefighters’ Pension Fund to combine service under reciprocity has been received in full. No further action is required by the Board at this time. Establish 2020 Board Meeting Dates: The Board established the 2020 Board meeting dates as January 29, 2020; April 28, 2020; July 24, 2020; and October 22, 2020 at 8:00 a.m. at the Butler Government Center, West Wing Conference Room, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523. ATTORNEY’S REPORT – REIMER & DOBROVOLNY, PC: 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 Bodony to adjourn the meeting at 9:40 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for January 29, 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