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Minutes - 01/20/2022 - 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 JANUARY 20, 2022 A regular meeting of the Oak Brook Firefighters’ Pension Fund Board of Trustees was held on Thursday, January 20, 2022 at 9:00 a.m. at the Butler Government Center, located at 1200 Oak Brook Road, Oak Brook, Illinois 60523, pursuant to notice. CALL TO ORDER: President Fagan called the meeting to order at 9:00 a.m. ROLL CALL: PRESENT: President John Fagan, Secretary Gino Picciola, Trustees Nemura Pencyla, Mike McCarthy and Mark Bahnsen ABSENT: None ALSO PRESENT: Attorney Richard Reimer, Reimer Dobrovolny & LaBardi PC; Finance Director Jason Paprocki, Village of Oak Brook; Tom Sawyer, Sawyer Falduto Asset Management, LLC (SFAM); Jennifer Flores, Lauterbach & Amen, LLP (L&A) TRUSTEE CONTINUING EDUCATION SESSION: Trustees Fagan, Picciola, Pencyla, Bahnsen and McCarthy 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: July 22, 2021 and October 21, 2021 Regular Meetings: The Board reviewed the July 22, 2021 and October 21, 2021 regular meeting minutes. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve the July 22, 2021 and October 21, 2022 regular meeting minutes as written. Motion carried unanimously by voice vote. ATTORNEY’S REPORT – REIMER DOBROVOLNY & LABARDI PC: Status of Duty Disability – Sean Kelly: Attorney Reimer apprised the Board that Sean Kelly is presently in treatment for his injury and a hearing will be scheduled for a date to be determined post treatment. Review of Disability Hearing Processes: Attorney Reimer reviewed general disability hearing processes with the Board. All questions were answered by Attorney Reimer. Legal Updates: Attorney Reimer discussed updates to consolidation and general pension matters. The asset transfer packet was also reviewed with the Board. All questions were answered by Attorney Reimer. NEW BUSINESS: IFPIF Status Update and Discussion/Possible Action to be taken on all IFIPF Requests Pertaining to Consolidation: The Board acknowledged the IFPIF Notice of Transfer Date as April 1, 2022 and discussed IFPIF’s request to execute the associated exhibits. A motion was made by Trustee Fagan and seconded by Trustee McCarthy to defer action on all IFPIF requests pertaining to consolidation until a decision regarding the lawsuit pertaining to pension fund consolidation has been decided by the Illinois Supreme Court. Motion carried by roll call vote. Oak Brook Firefighters’ Pension Fund Meeting Minutes – January 20, 2022 Page 2 of 4 AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None Attorney Reimer left the meeting at 10:11 a.m. INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT, LLC: Quarterly Investment Performance Report: Mr. Sawyer presented the Quarterly Investment Performance Report for the period ending December 31, 2021. As of December 31, 2021, the fourth quarter net return is 4.3% versus the fourth quarter account benchmark of 4.9%. The investment return for the quarter is $1,532,736 for an ending market value of $337,810,750. The current asset allocation is as follows: fixed income at 36.5%; equities at 60.6%; and cash equivalents at 2.9%. 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 Pencyla 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. Mr. Sawyer left the meeting at 10:20 a.m. APPROVAL OF MEETING MINUTES (CONTINUED): Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting minutes for review. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report and Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the twelve- month period ended December 31, 2021 prepared by L&A. As of December 31, 2021, the net position held in trust for pension benefits is $37,807,313 for a change in position of $3,287,272.55. The Board also reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report, Payroll Journal and Vendor Check Report for the period October 1, 2021 through December 31, 2021 for total disbursements of $132,514.72. A motion was made by Trustee Fagan and seconded by Trustee McCarthy to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Vendor Check Report in the amount of $132,514.72. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None 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: The Board discussed the registration fees for Trustees Pencyla, McCarthy and Bahnsen to attend the IPPFA Certified Trustee Training Program. A motion was made by Trustee Fagan and seconded by Trustee Picciola to approve payment of the registration fees in the total amount of $1,600. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None Oak Brook Firefighters’ Pension Fund Meeting Minutes – January 20, 2022 Page 3 of 4 COMMUNICATIONS AND REPORTS: 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 31, 2022. A status update will be provided at the next regular meeting. Statements of Economic Interest: The Board noted that the List of Filers must be submitted to the County by the Village by February 1, 2022. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2022. APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: Contribution Refund – Barry Liss: The Board reviewed the contribution refund request submitted by Barry Liss. A motion was made by Trustee Fagan and seconded by Trustee McCarthy to approve Barry Liss’s contribution refund in the amount of $98,377.85 paid in a direct roll over and issued on November 30, 2021. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: There were no applications for retirement or disability benefits. OLD BUSINESS: Certify Special Election Results – Retired Member Position: L&A conducted a special election for the retired member position on the Oak Brook Firefighters’ Pension Fund Board of Trustees. The Board noted that 31 ballots were received and 29 ballots were counted with 2 ballots being spoiled. The retired member special election results are as follows: 18 votes for Mark Bahnsen, 6 votes for Frank Richter and 5 votes for Robert Morton. Mark Bahnsen was elected as the retired member on the Board of Trustees for an unexpired three-year term expiring April 30, 2024. A motion was made by Trustee Fagan and seconded by Trustee Bahnsen to certify the election results. Motion carried unanimously by voice vote. Discussion/Approval – FPIF Letter of Direction: The Board discussed the Letter of Direction issued by FPIF. A motion was made by Trustee Fagan and seconded by Trustee Picciola to defer completion of the Letter of Direction until a determination by the Illinois Supreme Court regarding pension fund consolidation has been finalized. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None Review/Adopt – Resolution Authorizing Account Representatives for Northern Trust Global Cash Movement Portal: The Board discussed the Resolution Authorizing Account Representatives for the Northern Trust Global Cash Movement Portal. Further discussion will be held at the next regular meeting. NEW BUSINESS (CONTINUED): Reciprocity Update – Sarie Lorence: The Board noted that the balance due from Sarie Lorence to the Oak Brook Firefighters’ Pension Fund to combine service under reciprocity has been received in full. A motion was made by Trustee Fagan and seconded by Trustee Bahnsen to accept this payment and recognize the purchase as paid in full. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None Review Trustee Term Expirations and Election Procedures: The Board noted that there are currently no elected or appointed member Trustee terms expiring in April 2022. Oak Brook Firefighters’ Pension Fund Meeting Minutes – January 20, 2022 Page 4 of 4 Approve Annual Cost of Living Adjustments for Pensioners: The Board reviewed the 2022 Cost of Living Adjustments (see attached) calculated by L&A. A motion was made by Trustee Fagan and seconded by Trustee Bahnsen to approve the 2022 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried by roll call vote. AYES: Trustees Fagan, Picciola, Bahnsen, Pencyla and McCarthy NAYES: None ABSENT: None CLOSED SESSION, IF NEEDED: There was no need for closed session ADJOURNMENT: A motion was made by Trustee Fagan and seconded by Trustee Pencyla to adjourn the meeting at 10:37 a.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for April 21, 2022 at 9:00 a.m. Board President or Secretary Approved by the Board of Trustees on _______________________ Minutes prepared by Jennifer Flores, Pension Services Administrator, Lauterbach & Amen, LLP