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Minutes - 04/22/2021 - 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 APRIL 22, 2021 A regular meeting of the Oak Brook Firefighters’ Pension Fund Board of Trustees was held on Thursday, April 22, 2021 at 8:00 a.m. in the Upper-Level Conference Room of the Butler Government Center, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523 and via teleconference in accordance with Public Act 101-0640, 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, Trustees Jim Bodony, Timothy Schlindwein and Kevin Tan ABSENT: None ALSO PRESENT: Finance Director Jason Paprocki, Village of Oak Brook; Tom Sawyer, Sawyer Falduto Asset Management, LLC; Heidi Andorfer, Foster & Foster, Jennifer Flores, Lauterbach & Amen, LLP (L&A) TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Tan, Schlindwein, 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: January 21, 2021 Regular Meeting: The Board reviewed the January 21, 2021 regular meeting minutes. A motion was made by Trustee Fagan and seconded by Trustee Tan to approve the January 21, 2021 regular meeting minutes as written. Motion carried unanimously by voice vote. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly Investment Performance Report: Mr. Sawyer presented the Quarterly Investment Performance Report for the period ending March 31, 2021. As of March 31, 2021, the first quarter net return is 2.5% versus the first quarter account benchmark of 3.0%. The investment return for the quarter is $880,464 for an ending market value of $35,139,254. The current asset allocation is as follows: fixed income at 38%; equities at 60.2%; and cash equivalents at 1.8%. 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 Picciola 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 – April 22, 2021 Page 2 of 4 ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the three-month period ended March 31, 2021 prepared by L&A. As of March 31, 2021, the net position held in trust for pension benefits is $35,135,705.37 for a change in position of $615,664.92. 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 Tan 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 January 1, 2021 through March 31, 2021 for total disbursements in the amount of $111,438.66. A motion was made by Trustee Fagan and seconded by Trustee Bodony to approve the disbursements shown on the Vendor Check Report in the amount of $111,438.66. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony, Schlindwein and Tan NAYS: None ABSENT: None Additional Bills, if any – Illinois Department of Insurance Compliance Fee: The Board noted that the Illinois Department of Insurance Compliance Fee invoice will be issued. A motion was made by Trustee Fagan and seconded by Trustee Tan to approve payment of the IDOI Compliance Fee, upon receipt of the invoice in an amount not to exceed $8,000. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony, Schlindwein and Tan NAYS: None ABSENT: None 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 REPORTS: Affidavits of Continued Eligibility: The Board noted that all 2020 Affidavits of Continued Eligibility have been received by L&A. The originals were provided to the Board for their recordkeeping. Statements of Economic Interest: The Board was reminded that the Statements of Economic Interest are due by May 1, 2021. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: There were no applications for membership or withdrawals from the Fund. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Regular Retirement Benefit – Gary Clark: L&A apprised the Board that Gary Clark has submitted his application for retirement and benefit calculations are in process. Further discussion will be held at the next regular meeting. OLD BUSINESS: 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. Review/Approve – Fiduciary Liability Insurance Renewal: The Board reviewed the policy coverage renewal of the Fiduciary Liability Insurance Policy expiring April 30, 2021. A motion was made by Trustee Fagan and seconded by Trustee Tan to approve renewal of the Fiduciary Liability Insurance policy from Oak Brook Firefighters’ Pension Fund Meeting Minutes – April 22, 2021 Page 3 of 4 Mesirow Insurance Services, Inc through Ullico Casualty Group, LLC effective April 30, 2021 through April 30, 2022 in the amount of $4,632.00. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony, Schlindwein and Tan NAYS: None ABSENT: None Trustee Tan left the meeting at 9:47 a.m. NEW BUSINESS: Review/Approve – Actuarial Valuation: The Board reviewed the Actuarial Valuation as prepared by Foster & Foster. Based on data and assumptions, the recommended municipal contribution is $2,693,716 and the statutory minimum contribution amount is $2,326,256. A motion was made by Trustee Fagan and seconded by Trustee Bodony to accept the Actuarial Valuation as prepared. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony and Schlindwein NAYS: None ABSENT: Trustee Tan Review/Approve – Municipal Contribution: The Board discussed requesting a municipal contribution in the amount of $2,693,716. A motion was made by Trustee Fagan and seconded by Trustee Bodony to request a municipal contribution in the amount of $2,693,716 from the Village of Oak Brook, based on the recommended amount stated in the Actuarial Valuation prepared by Foster & Foster and to direct RDL to issue a formal request to the municipality. Motion carried unanimously by voice vote. Certify Board Election Results – Active and Retired Member Positions: L&A conducted an election for one of the active member positions and the retired position on the Oak Brook Firefighters’ Pension Fund Board of Trustees. John Fagan ran unopposed for the active member position and Jim Bodony ran unopposed for the retired member position. Trustees Fagan and Bodony were reelected for three-year terms expiring April 30, 2024. A motion was made by Trustee Schlindwien and seconded by Trustee Fagan to certify the active/retired member election results. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony and Schlindwein NAYS: None ABSENT: Trustee Tan Appointed Member Position Term Expiration – Tim Schlindwein: The Board noted that Trustee Schlindwein’s appointed member term will expire on April 30, 2021 and reappointment has been requested. Further discussion will be held at the next regular meeting. The Board also noted that Trustee Tan has stepped down from his appointed member position and reappointment of his position has been requested. ATTORNEY’S REPORT – REIMER DOBROVOLNY & LABARDI PC: Annual Independent Medical Examination – Jennifer White: The Board noted that Jennifer White attended her annual independent medical examination and it was determined that she remains disabled at this time. A motion was made by Trustee Fagan and seconded by Trustee Picciola to continue Jennifer White’s disability benefits based on a finding that she remains disabled and subject to further annual examinations until age 50. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bodony and Schlindwein NAYS: None ABSENT: Trustee Tan Oak Brook Firefighters’ Pension Fund Meeting Minutes – April 22, 2021 Page 4 of 4 Status of Line of Duty Disability Application – Sean Kelly: The Board noted that medical records for Sean Kelly are in the process of being gathered. 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 Fagan and seconded by Trustee Bodony to adjourn the meeting at 10:17 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for July 22, 2021 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