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Minutes - 01/21/2021 - Firefighter's Pension Fund BoardOUN s U, VILLAGE OF OAK BROOK BOARD OF TRUSTEES, FIREFIGHTERS' PENSION FUND WEST WING CONFERENCE ROOM OF THE BUTLER GOVERNMENT CENTER 12OO OAK BROOK ROAD OAK BROOK, IL 60523 630-368-s000 MINUTES OF A REGULAR MEETING OF THE OAK BROOK FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES JANUARY 21,2021 A regular meeting ofthe Oak Brook Firefighters' Pension Fund Board of Trustees was held on Thursday, January 21, 2021 at 8:00 a.m. in the West Wing Conference Room of the Butler Government Center, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523 andvia teleconference in accdrdance with Public Act l0l-0640, 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, Timothy Schlindwein (via teleconference) and, Kevin Tan None Finance Director Jason Paprocki, Village of Oak Brook; Tom Sawyer, Sawyer Falduto Asset Management, LLC; Jennifer Flores and Steve Earnhart (arrived at 9:08 a.m. via teleconference),Lauterbach & Amen, LLP (L&A); Firefighter Sean Kelly, Village of Oak Brook Fire Department; Attorney Scott Moran, Legal Counsel for Firefighter Sean Kelly larrived at 9:l I a.m. via teleconference) TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Tan, Schlindwein (via teleconference), Picciola and Bodony attended a one-hour Trustee training education course from 8:00 a.m. to 9:00 a.m. presented by Sawyer Falduto Asset Management, LLC. PUBLIC COMMENT: There was no public comment. APPROVAL OF MEETING MINUTES: October 22, 2020 Regular Meeting: The Board reviewed the October 22, 2020 regular meeting minutes. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve the October 22,2020 regular meeting minutes as written. Motion carried unanimously by voice vote. Semi-Annual Review of Closed Session Meeting Minufes: There were no closed session meeting minutes for review Mr. Earnhart arrived at 9:08 a.m. Attorney Moran anived at 9: I I a.m. INVESTMENT REPORT - SAWYER FALDUTO ASSET MANAGEMENT' LLC: Quarterly Investment Pedormance Report: Mr. Sawyer presented the Quarterly Investment Performance Report for the period ending December 31,2020. As of December 31,2020,the fourth quarter net return is 8.86%o versus the fourth quarter account benchmark of 9.760/o. The investment retum for the quarter is $2,846,461 for an ending market value of $34,521,649. The current asset allocation is as follows: fixed income at37.lo/o; equities at60.7%o; and cash equivalents at2.2o/o.Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. A motion was made by Trustee Fagan and seconded by Trustee Bodony to accept the Quarterly Investment Performance Report as presented. Motion carried unanimously by voice vote. Review/Update Investment Policy: The Board reviewed the current Investment Policy and determined that no changes are required at this time. Oak Brook Firefighters' Pension Fund Meeting Minutes - January 21,2021 Page 2 of3 ACCOUNTANT'S REPORT - LAUTERBACH & AMEN, LLP: Alonthly Financial Report: The Board reviewed the Monthly Financial Report for the twelve-month period ended December 31, 2020 prepared by L&A. As of December 31,2020, the net position held in trust for pension benefits is $34,520,323.63 for a change in position of $3,624,088.04. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal, A motion was made by Trustee Fagan and seconded by Trustee Picciola to accept the Monthly Financial Report as presented. Motion carried unanimously by voice vote. Presentation and Approval of Bills: The Board reviewed the Vendor Check Report for the period October 1,2020 through December 31,2020, fbr total disbursements in the amount of $111,285.83. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve the disbursements shown on lhe Vendor Check Report in the amount of $111,285.83. Motion carried by roll call vote. AYES: Trustees Fagan, Pior:iola, Bodony, Schlindwein and Tan NAYS: None ABSENT: None Additional Bills, tf 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 registration fees or reimbursable expenses presented. COMMUNICATIONS AND REPORTSz Affidavits of Continued Eligibility: The Board noted that L&A mailed Affidavits of Continued Eligibility to all pensioners with the December payroll cycle and a due date of January 28, 2021. A status update will be provided at the next regular meeting. 2021 IRS Mileage Rate: The Board noted that the IRS standard business mileage rate used for reimbursement decreased to $0.56 per mile effective January 1,2021. Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the County by the Village by February 1, 2021 . Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1,2021. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Application for Membership Samawi Fouad: The Board reviewed the Application for Membership submitted by Samawi Fouad to join the Oak Brook Firefighters' Pension Fund effective November 11,2020 as a Tier II participant. Contribution Refund - Jacob Arzer: The Board reviewed the contribution refund request submitted by Jacob Arzer and noted that Mr. Arzer received a refund in the amount of $61,655.16 paid directly to himself issued on December 29,2020. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: There were no applications for retirement or disability benefits. OLD BUSINESS: There was uo old business to discuss. NEW BUSINESSI Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2021 Cost of Living Adjustments (see attached) calculated by L&A. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve the 2021 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried by roll call vote. AYES: Trustees Fagan. Picciola. Bodony. Schlindwein and Tan NAYS: None ABSENT: Noue Attorney Moran and Mn Kelly left the meeting at 9:43 a.m. Oak Brook Firefighters' Pension Fund Meeting Minutes - January 21,2021 Page 3 of3 Review Trustee Term Expirations and Election Procedures: The Board noted that the active member term cunently held by Trustee Fagan and the retired member term currently held by Trustee Bodony are expiring in April 2021.L&A will conduct an election on behalf of the Pension Fund for one of the two active member Trustee positions and the retired member position. The Board also noted that the appointed Trustee position held by Trustee Schlindwein is expiring in April 2021 and he desires to remain on the Board. The Board will contact the Village and seek reappointment of Trustee Schlindwein to the Board. IDOI Annual Statement: The Board noted that the IDOI Annual Statement is in process and the final report will be sent to the Board for review upon completion. Discussion/Possible Action BMO Harris Operating Account: Mr. Earnhart reviewed the memorandum prepared by L&A regarding the BMO Harris Bank operating account indicating that due to the current market environment, the account was transitioned to an interest-bearing account as of December 1,2020, which incurs cost based on activity. All questions were answered by Mr. Earnhart. Discussion/Possible Action Fiduciary Liability Insurance Renewal: The Board discussed the renewal of the Fiduciary Liability Insurance Policy expiring April 30,2021. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve renewal of the Fiduciary Liability Insurance policy from Mesirow Insurance Services, Inc through Ullico Casualty Group, LLC effective April 30, 2021 through April 30, 2022 in an amount not to exceed an increase of l0%o of the current premium fees. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony, Schlindwein and Tan NAYS: None ABSENT: None ATTORNEY'S REPORT - REIMER DOBROVOLNY & LABARDI PC: Annual Independent Medical Examination - Jenniftr White: The Board discussed the status of Jennifer White's Annual Independent Medical Examination and directed Trustee Bodony to reach out to Attorney Reimer to obtain a status update. Further discussion will be held at the next regular meeting. Status Update Pension Fund Consolidation: The Board discussed ongoing developments pertaining to the consolidation of Article 4 Pension Fund assets into the Illinois Firefighters Pension Investment Fund. Further discussion will be held at the next regular meeting. 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 Bodony and seconded by Trustee Fagan to adjourn the meeting at 10:07 a.m. Motion canied unanimously by voice vote. for April 22,2021at8:00 a.m. Approved by the Board ofTrustees on lsThe or Minutes prepared by Jennifer Flores, Pension Services Administrator, Lauterbach & Amen, LLP