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HomeMy WebLinkAboutMinutes - 07/16/2013 - Firefighter's Pension Fund BoardMINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OAK BROOK FIREFIGHTERS’ PENSION FUND July 16, 2013 A regular meeting of the Board of Trustees of the Oak Brook Firefighters’ Pension Fund was held on Tuesday, July 16, 2013 at 9:00 a.m., at the Butler Government Center, West Wing Training/Conference Room located at 1200 Oak Brook Road, Oak Brook, IL 60523, pursuant to notice, to conduct regular business. CALL TO ORDER BY PRESIDING OFFICER President Michael Erickson called the meeting to order at 9:15 a.m. ROLL CALL Upon roll call the following answered: Present: President Michael Erickson, Secretary John Fagan, Trustee Mark Fleishman, Trustee Timothy Schlindwein, Trustee George Kouba Absent: None Also Present: David Russell of Investment Performance Services, LLC (IPS); Robert Thompson and Amber Powers of MB Financial; Derek Flessner and Becky Davis of Lauterbach & Amen, LLP (L&A); Jason Franken of Foster & Foster Actuaries and Consultants; and Rose Kane of the Oak Brook Police Pension Fund (arrived later) PUBLIC COMMENT – No public comment was made. APPROVAL OF THE PRIOR MEETING MINUTES The Board reviewed the prior meeting minutes presented in the board meeting packet. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to approve the April 25, 2013 minutes as written. Motion carried by unanimous voice vote. The Board agreed that there were no closed session minutes. Mr. Franken discussed the actuarial request for proposal his firm received from the Village of Oak Brook. The Board stated their opinion of this arrangement from prior experience. Mr. Franken answered the Board’s concerns and stated that he is willing to attend meetings to be of assistance with actuarial matters whenever possible. Mr. Franken was excused and left the meeting at 9:52 a.m. ACCOUNTANT’S REPORT The Board noted that Treasurer Sharon Dangles attended a funding policy seminar offered by L&A, and discussed the benefits of a joint meeting of the Pension Funds and the Village Council. The Board discussed considering a December 2013 or January 2014 timeframe for this special meeting. The Board reviewed the financial report summary presented in the board meeting packet. For the five months ended 05/31/2013, the net position held in trust for pension benefits was $24,023,256.27. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to accept the 05/31/2013 financial report as presented by L&A. Motion carried by unanimous voice vote. The Board reviewed the disbursements presented in the board meeting packet. A motion was made by Trustee Fleishman and seconded by Trustee Kouba to approve the net payroll payouts and vendor payouts for April, May and June 2013 totaling $532,243.89 (see attached detail). AYES: Trustees Erickson, Fagan, Fleishman, Schlindwein and Kouba NAYS: None ABSENT: None Included with the June 2013 disbursements, the Board approved the registration fee of $295 for George Kouba to attend the IPPFA Midwest conference in Lake Geneva this October. This conference will fulfill Mr. Kouba’s 16 hour continuing education requirement. Oak Brook Firefighters’ Pension Fund Minutes of Meeting – July 16, 2013 Page 2 of 3 The Board discussed the contribution request to the Coalition presented in the board meeting packet. A motion was made by Trustee Schlindwein and seconded by Trustee Kouba to authorize payment of the $300 contribution to the Coalition for Qualified Plan Status for the 2014-2019 cycle. AYES: Trustees Erickson, Fagan, Fleishman, Schlindwein and Kouba NAYS: None ABSENT: None INVESTMENT PERFORMANCE SERVICES Mr. Russell distributed the updated language for Appendix A and B of the Investment Policy statement to the Board for their records. The Board approved the language and adopted Appendix A and B, as presented, at the April 25, 2013 meeting. Mr. Russell distributed the quarterly investment report and reviewed it with the Board. As of 06/30/2013, the Fund was down 0.8% for the quarter, and the ending market value was $23,580,471. The portfolio outperformed the benchmark, which was down 1.2% for the quarter. Investment earnings were down $138,558, and asset allocations were: domestic equity 38.6%, international equity 14.8%, total fixed income 41.8%, and total cash 4.8%. Year-to- date the portfolio was up 2.5%, and reported an 8.1% return for the 3 year performance. Mr. Russell noted the benefits of the recent move to shorten duration (MB portfolio currently at 2.9 years) from the Barclays Aggregate benchmark (duration of about 5.2 years). High cash holdings were noted and recommended to be rebalanced to the cash target of 2%. IPS recommended closing the Illinois Funds Money market account (with an approximate account balance of $140,035), and combine with an additional $230,000 in cash from the MB cash portfolio, and transfer the approximate total of $370,000 to the Blackrock Global Allocation Fund. A motion was made by Trustee Schlindwein and seconded by Trustee Kouba to authorize the transfer of funds as stated. AYES: Trustees Erickson, Fagan, Fleishman, Schlindwein and Kouba NAYS: None ABSENT: None Mr. Russell will follow up with Treasurer Sharon Dangles to execute the transactions and close the Illinois Funds account. The MB representatives distributed and reviewed the fixed income, cash and equivalent quarterly investment report with the Board. Cash flow, strategies to shorten duration and benchmark reporting were discussed. The Board requested that MB add the Barclays Intermediate Govt/Corp Index to the portfolio benchmarks. A motion was made by Trustee Schlindwein and seconded by Trustee Kouba to accept the investment reports as presented. Motion carried by unanimous voice vote. Mr. Russell, Mr. Thompson and Ms. Powers were excused and left the meeting at 11:04 a.m. INFORMATIONAL ITEMS AND UNFINISHED BUSINESS The Board noted that Mark Schoppe’s disability application was received and is in process. The Legal and Legislative Update was presented in the board meeting packet for the Board to review at their convenience. The Board noted that the 12/31/2012 Illinois Department of Insurance (IDOI) Annual Statement was completed and that the Certification Form was executed by the Board President, Secretary and Treasurer and mailed to the IDOI on 05/31/2013. Copies of the annual statement will be distributed at the next meeting. The Board acknowledged receipt of the required $50 check for the Pavlovic QILDRO processing fees. The check will be given to Treasurer Sharon Dangles for deposit into the Fund. Oak Brook Firefighters’ Pension Fund Minutes of Meeting – July 16, 2013 Page 3 of 3 The Board reported that a Freedom of Information Act (FOIA) request was sent to the Village Finance Director’s office on 05/20/2013 from Kinhung Cheung, Data Analyst for BrightScope, Inc. Mr. Cheung specifically requested a schedule of the investment portfolio by asset class and manager as of 12/31/2012, a list of service providers, the investment consultant name, and the plan’s current discount rate and average age at retirement. Mr. Russell provided an exhibit from the 12/31/2012 performance report that stated the asset allocation and list of managers as requested and Ms. Dangles obtained the average retirement age and discount rate from the actuary and completed the FOIA request on 05/31/2013. The Board discussed the Village Board’s request for agenda packets to be submitted to the Village from both the Fire and Police Pension Funds. L&A was directed to send a copy of the Board meeting packet to the Board Attorney’s office to be reviewed and to advise the Board. Trustees Erickson and Fagan will follow up with further direction regarding this matter. The Board noted that the annual affidavits have been sent to the pensioners and that L&A will follow up and provide a report of the results at the next meeting. The Board reviewed the Trustee Training Summary and was urged to complete any unfinished training requirements prior to the end of the calendar year. Ms. Kane joined the meeting at 11:32 a.m. and discussed the Village Board’s request for submission of agenda packets, and the invitation to the Village’s Committee of the Whole meeting on 08/26/2013 at 7:00 p.m. Ms. Kane indicated that the Pension Fund Board, their actuaries and anyone else would be welcome to attend and give input regarding the state of all of the Village’s pension systems. Ms. Kane left the meeting at 11:54 a.m. NEW BUSINESS The Board discussed the recent new hire, Zack Busse. Mr. Busse was hired on 07/08/2013 and has Tier 2 status. Upon receipt of Mr. Busse’s application and pension file documentation, the Board will formally accept him into the Pension Fund during the next meeting. The Board discussed Board Officer Position elections. A motion was made by Trustee Kouba and seconded by Trustee Fleishman to keep the same Board Officers in their current positions: President – Michael Erickson, and Secretary – John Fagan. Motion carried by unanimous voice vote. The Board authorized L&A to communicate the current Board member information to the IPPFA as requested. The next Board meeting is scheduled for October 24, 2013 at 9:00 a.m. CLOSED SESSION – The Board agreed there was no need to hold a closed session. ADJOURNMENT A motion was made by Trustee Schlindwein and seconded by Trustee Kouba to adjourn the meeting at 12:06 p.m. Motion carried by unanimous voice vote. Respectfully submitted, Michael Erickson, President John Fagan, Secretary Minutes prepared by Pension Services Administrator, Becky Davis OAK BROOK FIREFIGHTERS' PENSION FUND DISBURSEMENTS PRESENTED AT THE 07/16/2013 MEETING DESCRIPTION AMOUNT April 2013 Net Payroll Payouts 142,435.18$ April 2013 Vendor Payouts 40,257.25$ May 2013 Net Payroll Payouts 142,592.50$ May 2013 Vendor Payouts 33,248.02$ June 2013 Net Payroll Payouts 142,592.50$ June 2013 Vendor Payouts 31,118.44$ GRAND TOTAL OF DISBURSEMENTS:532,243.89$ Oak Brook Firefighters' Pension Fund OAKBRKFIREAll Checkbooks Vendor Checks Report Page 104/01/13-06/30/13 07/10/13 05:46 PM Vendor Name Chk. No. Check Date Amount IPFA 20086 04/11/13 245.00 FOSTER & FOSTER INC 20087 04/12/13 3,500.00 INVESTMENT PERFORMANCE SERVICES,20088 04/12/13 8,338.36 JOHN FAGAN * 20089 04/12/13 9.42 LAUTERBACH & AMEN, LLP 20090 04/12/13 1,320.00 MARK FLEISHMAN * 20091 04/12/13 125.00 REIMER & KARLSON LLC 20092 04/12/13 237.13 Subtotal 13,529.91 MB FINANCIAL BANK 50047 04/30/13 22.00 OAK BROOK BANK/IRS-EFTPS 11760 04/30/13 16,266.40 VILLAGE OF OAK BROOK 3991 04/30/13 10,193.94 Subtotal 26,482.34 LAUTERBACH & AMEN, LLP 20093 05/15/13 3,815.00 VLG OF OAK BROOK* 20094 05/15/13 3,130.00 Subtotal 6,945.00 OAK BROOK BANK/IRS-EFTPS 11796 05/31/13 16,266.40 VILLAGE OF OAK BROOK 3996 05/31/13 10,036.62 Subtotal 26,303.02 ILLINOIS STATE TREASURER 20095 06/05/13 4,433.29 NIU 20096 06/13/13 295.00 REIMER & KARLSON LLC 20097 06/13/13 87.13 Subtotal 382.13 OAK BROOK BANK/IRS-EFTPS 11832 06/28/13 16,266.40 VILLAGE OF OAK BROOK 4001 06/28/13 10,036.62 Subtotal 26,303.02 TOTAL 104,623.71