Fire Pension Board

MINUTES CITY OF DEKALB DeKalb Firefighters Pension Fund October 12, 2017 The Board of Trustees of the DeKalb Firefighters Pension Fund held a Meeting on October 12, 2017 in the Ellwood Conference Room at 200 S. Fourth Street, DeKalb, Illinois. Pat Eriksen President of the Board called the meeting to order at 8:04 a.m. A. ROLL CALL Secretary Chris Ziola called the roll and the following members of the DeKalb Firefighters Pension Fund were present: Bill Kalal, Eric Hicks, and Ray Krueger. Members absent at roll call were: Pat Eriksen. Also present were: Pension Board Attorney Cary Collins, Investment Manager Craig Larsen and Jorie Pitt, City of DeKalb Finance Director Molly Talkington, and Recording Secretary and Staff Liaison Traci Lemay. B. APPROVAL OF THE AGENDA – ADDITIONS / DELETIONS A Motion was made by Ray Krueger to approve the Agenda. Said Motion was seconded by Chris Ziola and unanimously approved by the Board by roll call. C. PUBLIC PARTICIPATION None D. APPROVAL OF MINUTES A Motion was made by Chris Ziola to approve the minutes of the July 13, 2017 regular meeting and the September 29, 2017 special meeting. Said Motion was seconded Ray Krueger and unanimously approved by the Board by roll call. E. OLD BUSINESS Request for Proposal for Fixed Income Manager A Motion was made by Chris Ziola to hire Seger, Brant, and Hamill pending approval of a signed contract reviewed by Cary Collins. Said Motion was seconded by Bill Kalal and unanimously approved by the board by roll call. A Motion was made by Ray Krueger to change custodian of the Bond portfolio from PNC to Schwab pending contract approval by Cary Collins. Said Motion was seconded by Chris Ziola and unanimously approved by the Board by roll call. DeKalb Firefighters Pension Fund October 12, 2017 Page 2 of 3 Seminars Chris Ziola and Eric Hicks each need 16 hours of trustee certification training. Chris Ziola also needs Open Meetings Act Training. F. NEW BUSINESS Investment Manager Report Craig Larsen presented the quarterly report to the Board. Inflation was below 2%. Feds may raises rates by end of year. Rate of Return Assumptions City actuary is recommending a 7.5% return on investment. This will require a very aggressive and more risky investment strategy. The State of Illinois is recommending 6.75% Cary Collins recommended council be advised to use 6.75%. Craig Larson stated 7.5% is the highest of any fund he represents. Molly Talkington would like the board to support 7.5% and a 100% funded pension. The Finance Advisory Committee supports a 7.0% rate of return. The difference between a 7.0% and a 7.5% levy is about $500,000. If rate is 7.5%, the Board will need to increase stock allocation to 65% and increase risk. A Motion was made by Ray Krueger to support the 7.0% rate of return. Said Motion was seconded by Bill Kalal and unanimously approved by the Board. Asset allocation will be tabled until City sets recomme3nded rate of return and target percentage for funding. Financial reports and Transactions A Motion was made by Chris Ziola to take an omnibus vote and accept the following items in Omnibus form:  Financial Reports and Transactions of Investment Managers for the 3rd quarter of 2017  Financial Reports of the Investment Consultant for the 3rd quarter of 2017  Financial Reports and Transactions of the Cash Manager for the 3rd quarter of 2017  Payroll Transactions for the 3rd quarter of 2017  Monthly Budget Reports for the 3rd quarter of 2017  Ratify the trades of the asset manager for the 3rd quarter of 2017 Said Motion was seconded by Bill Kalal and unanimously approved by the Board by roll call. Accounts Payable A Motion was made by Bill Kalal to authorize the payment of the quarterly bills listed on the Lauterback and Amen general ledger. Said Motion was seconded by Chris Ziola and unanimously approved by the Board by roll call. DeKalb Firefighters Pension Fund October 12, 2017 Page 3 of 3 New Members None Request for Benefits None Military Service Time Buyback None Calendar of Meetings for 2018 January 11, 2018 April 12, 2018 July 12, 2018 October 11, 2018 G. ADJOURNMENT A Motion was made by Bill Kalal to adjourn. Said Motion was seconded by Ray Krueger and unanimously approved by the Board. The meeting adjourned at 9:27 a.m. The next regular meeting of the DeKalb Firefighters Pension Board will be January 11, 2018. __________________________________________ Traci Lemay, Pension Board Recording Secretary Minutes approved by DeKalb Firefighters Pension Board on January 11, 2018.