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Minutes - 04/25/2014 - Firefighter's Pension Fund BoardMINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OAK BROOK FIREFIGHTERS’ PENSION FUND April 25, 2014 A regular meeting of the Board of Trustees of the Oak Brook Firefighters’ Pension Fund was held on Friday, April 25, 2014 at 9:00 a.m., at the Butler Government Center, West Wing 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 9:03 a.m. ROLL CALL Upon roll call the following answered: Present: President Michael Erickson, Trustee Mark Fleishman, Trustee Timothy Schlindwein and Trustee George Kouba Absent: Secretary John Fagan Also Present: David Russell of Investment Performance Services, LLC (IPS); Robert Thompson and Amber Powers of MB Financial; Becky Davis of Lauterbach & Amen, LLP (L&A); Lt. Mark Schoppe; Cathy Doczekalski, Asst. acting Village Manager and Jerry Wolin, Village Trustee PUBLIC COMMENT –There was no public comment. 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 Schlindwein and seconded by Trustee Kouba to approve the 03/06/2014 special meeting (training) minutes. Motion carried by unanimous voice vote. • A motion was made by Trustee Fleishman and seconded by Trustee Kouba to approve the 03/13/2014 special meeting (training) minutes as written. Motion carried by unanimous voice vote. • A motion was made by Trustee Kouba and seconded by Trustee Fleishman to approve the 03/26/2014 special meeting (actuarial) minutes as written. Motion carried by unanimous voice vote. ACCOUNTANT’S REPORT The Board agreed to table the review and potential approval of the draft IDOI Annual Statement until the next meeting. The Board reviewed the financial report summary presented in the board meeting packet. For the three months ended 03/31/2014, the net position held in trust for pension benefits was $24,612,210.99. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to accept the 03/31/2014 financial report as prepared 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 Kouba and seconded by Trustee Schlindwein to approve the net payroll payouts and vendor payouts for January, February and March 2014. The vendor payouts totaled $117,067.51 (see attached detail). AYES: Trustees Erickson, Schlindwein, Fleishman and Kouba NAYS: None ABSENT: Trustee Fagan INVESTMENT PERFORMANCE SERVICES Mr. Russell discussed the Board’s decision for the one hour training session he will hold prior to the next three meetings. The topics will be: 1.) High Speed Trading; 2.) Asset and Liability Modeling, and 3.) Risk budgeting. Mr. Russell distributed the quarterly investment report and reviewed it with the Board. As of 03/31/2014, the Fund was up 1.8% for the quarter, and the ending market value was $24,522,297. The portfolio return was slightly under the benchmark which was up 2.1% for the quarter. Investment earnings were $420,880 for the quarter. As of 03/31/2014, asset allocations were: Domestic Equity 22.5%, International Equity 14.8%, Fixed Income 38.4%, REIT Mutual Funds 10.5%, Global Tactical Asset Allocation 8.2%, and total Cash 5.6%. The portfolio reported a 6.8% return for Oak Brook Firefighters’ Pension Fund Minutes of Meeting – April 25, 2014 Page 2 of 3 the one year performance, and 6.3% for the three year performance. Since inception (January 2010), the portfolio return is 7.7%. Mr. Russell discussed lowering the current cash balance from 5% to 1%, and indicated that he will discuss this with Treasurer Dangles. Trustee Erickson left the meeting on a Fire Call at 9:46 a.m., and returned at 9:52 a.m. The quarterly compliance report was reviewed and there are no exceptions, all mutual funds are in compliance and the fixed income separate account with MB Financial is also in compliance. No changes are recommended at this time. Investment options for discussion and approval at the next meeting will be added to the next agenda. The MB representatives distributed and reviewed the fixed income, and the cash and cash equivalent quarterly investment report with the Board. As of 03/31/2014, the total fund return was up 0.73%, the change due to investment for the quarter was a gain of $70,856 and the ending market value was $9,421,786. The performance returns reported the following: 0.19% for the latest one year, 3.73% for the latest three years, and 3.99% for the latest five years, outperforming the benchmarks in each category. Duration was reported to be 2.71 years. A motion was made by Trustee Schlindwein and seconded by Trustee Fleishman to accept the investment report as presented. Motion carried by unanimous voice vote. Mr. Russell, Mr. Thompson and Ms. Powers were excused and left the meeting at 10:40 a.m., and the Board took a short break. The Board reconvened at 10:47 a.m. Trustees present were: President Michael Erickson, Trustee Mark Fleishman, Trustee Timothy Schlindwein and Trustee George Kouba Trustees absent were: Secretary John Fagan Also present were: Cathy Doczekalski, Asst. acting Village Manager; Jerry Wolin, Village Trustee; Becky Davis of Lauterbach & Amen, LLP (L&A) and Lt. Mark Schoppe INFORMATIONAL ITEMS AND UNFINISHED BUSINESS The Board reviewed the Trustee Training Summary and agreed to retain Trustee Erickson as FOIA and OMA designee. The next three Board meetings will begin with a one hour training session. The training will start at 8:00 a.m. and will be presented by Mr. Russell. Ms. Davis will secure the West Wing conference room at 8:00 a.m. for this purpose, and the board meeting will follow at 9:00 a.m. All Trustees confirmed that they have completed their Statements of Economic Interest (SEI). Ms. Davis will follow up with Trustee Fagan to ensure that he has completed this task. L&A reported that the annual Affidavits of Continued Eligibility will be prepared and mailed to pensioners in June. NEW BUSINESS The Board discussed the annual IDOI Compliance fee invoice, which will be mailed to the Fund in May, and payment is due by the end of June. A motion was made by Trustee Kouba and seconded by Trustee Fleishman to authorize payment of the IDOI Compliance fee invoice upon receipt, not to exceed $8,000. AYES: Trustees Erickson, Schlindwein, Fleishman and Kouba NAYS: None ABSENT: Trustee Fagan The Board discussed the duty disability application requested by FF/PM Jennifer White, which is currently in process. Oak Brook Firefighters’ Pension Fund Minutes of Meeting – April 25, 2014 Page 3 of 3 The Board briefly discussed the update on Lt. Mark Schoppe’s disability hearing. Lt. Schoppe has retained an attorney and the Board selected several dates to coordinate all parties for the hearing. The following dates were offered: May 21st, May 23rd, June 4th, June 5th or June 6th; all dates have a preferred time of 9:00 a.m. The Board discussed the election results for active member Michael Erickson, who ran unopposed and was elected by acclamation. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to certify the election results, electing Michael Erickson to another three year term, ending 04/30/2017. The Village Board re-appointed George Kouba to another three year term on the Fire Pension Board of Trustees, ending 04/30/2017. The Trustees held the annual Board Officer elections. • A motion was made by Trustee Fleishman and seconded by Trustee Schlindwein to nominate Michael Erickson as Pension Board President; hearing no further nominations, nominations were closed. Motion was carried by unanimous voice vote. • A motion was made by Trustee Schlindwein and seconded by Trustee Fleishman to nominate John Fagan as Pension Board Secretary; hearing no further nominations, nominations were closed. Motion was carried by unanimous voice vote. The Board noted that a FOIA request from the Village of Oak Brook was received, requesting a copy of the Fund’s most recent quarterly investment report. The request was completed in a timely manner. The Board discussed the acceptance of a new member into the Fund. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to accept Zain Corral into the Fund; his date of hire was 04/04/2014, and he has Tier 2 status. The Board reviewed the retirement calculation for Battalion Chief Clifford Ekkert. A motion was made by Trustee Kouba and seconded by Trustee Schlindwein to approve the benefit calculation, prepared by L&A, and subject to the Treasurer’s verification, as follows: his entry date was 08/26/1991, his retirement date was 06/02/2014, and effective on 06/03/2014; at the age of 58 years old, and with 22 years and 9 months of creditable service earned; at 56.88% of his applicable salary of $117,440.35, the amount of his originally granted monthly pension is $5,566.18, until his first increase in July of 2015. AYES: Trustees Erickson, Schlindwein, Fleishman and Kouba NAYS: None ABSENT: Trustee Fagan The Board held a general discussion about the recent Village Board meeting, pension reform issues, media comments, and a proposal to respond as individuals in a factual and educational manner. 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 12:12 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 OAKBRKFIREAll Checkbooks Vendor Checks Report Page 101/01/14-03/31/14 04/16/14 04:24 PM Vendor NameChk. No.Check DateAmount LAUTERBACH & AMEN, LLP2011501/14/141,620.00 REIMER & KARLSON LLC2011601/14/141,329.08 Subtotal2,949.08 OAK BROOK BANK/IRS-EFTPS1208701/31/1417,410.41 VILLAGE OF OAK BROOK403601/31/1411,063.20 Subtotal28,473.61 INSPE ASSOC LTD2011702/13/144,206.00 MICHAEL ERICKSON *2011802/13/14150.00 Subtotal4,356.00 REIMER & KARLSON LLC2011902/14/144,654.53 OAK BROOK BANK/IRS-EFTPS1212402/28/1417,410.41 VILLAGE OF OAK BROOK404102/28/1411,180.01 Subtotal28,590.42 INSPE ASSOC LTD2012003/14/144,656.00 LAUTERBACH & AMEN, LLP2012103/14/143,495.00 Subtotal8,151.00 OAK BROOK BANK/IRS-EFTPS1212603/21/143,943.37 MB FINANCIAL BANK5005503/31/141,274.17 MB FINANCIAL BANK5005403/31/145,913.94 OAK BROOK BANK/IRS-EFTPS1216403/31/1417,668.12 VILLAGE OF OAK BROOK404603/31/1411,093.27 Subtotal35,949.50 TOTAL117,067.51