Fire Pension Board

MINUTES CITY OF DEKALB DeKalb Firefighters Pension Fund July 24, 2019 The Board of Trustees of the DeKalb Firefighters Pension Fund held a Meeting on July 24, 2019 in the Ellwood Conference Room at 200 S. Fourth St., DeKalb, Illinois. Pat Eriksen, President of the Board called the meeting to order at 8:01 AM. A. ROLL CALL President Pat Eriksen called the roll. The members of the DeKalb Firefighters Pension Fund present were Pat Eriksen, Jeff McMaster, Chris Ziola, and Ray Krueger. Bill Kalal was absent. Also present were Pension Board Attorney Cary Collins, Investment Manager Craig Larsen, City of DeKalb Assistant City Manager Ray Munch, and Recording Secretary Natalie Nelson. B. APPROVAL OF THE AGENDA – ADDITIONS / DELETIONS Chris Ziola motioned to approve the agenda, Pat Eriksen seconded the motion, and the motion passed by unanimous voice vote. C. PUBLIC PARTICIPATION Assistant City Manager Ray Munch was present. He had no comments at this time. D. APPROVAL OF MINUTES Chris Ziola motioned to approve the minutes from regular meeting held April 11, 2019, Pat Eriksen seconded the motion, and the motion passed by unanimous voice vote. F. OLD BUSINESS Seminars Chris Ziola commended Craig Larsen who presented at the IPPAC annual pension conference in Rock Island May 13-14, 2019. DeKalb Firefighters Pension Fund July 24, 2019 Page 2 of 3 G. NEW BUSINESS Investment Manager Report Craig Larsen presented the Quarterly Market Review report, highlighting fund performance and asset allocations. During the second quarter, increases occurred at all levels. During the past year, increases were slightly lower than anticipated. The year-to-date increases were 9.5%. Loss levels experienced in 2008 have recovered. Mr. Larsen discussed market cycles, investment risk, and return. He recommended considering long-term returns in periods greater than ten years. He said the Federal Reserve is expected to reduce interest rates. He reported the current cash level is sufficient. He suggested increasing stock allocation and the timing for transferring funds. Assistant City Manager Munch asked if investing in Illinois Funds has been considered, as the City of DeKalb invests in those. Mr. Larsen reported that the Fire Pension has invested in those in the past but not currently. Required Investment Transactions Pat Eriksen motioned to approve the transfer $1.8 million from Segall, Bryant & Hamill to the equity portfolio, Chris Ziola seconded the motion. A roll call vote was taken. Aye votes were cast by McMaster, Krueger, Ziola, and Eriksen. No dissenting votes were cast. The motion passed. Approval of Financial Transactions and Financial Reports Chris Ziola motioned to approve the financial transactions and report, Pat Erikson seconded the motion. A roll call vote was taken. Aye votes were cast by McMaster, Krueger, Ziola, and Eriksen. No dissenting votes were cast. The motion passed. Review and Update Asset Allocation Mr. Larsen proposed an addendum to the current asset allocation policy to allow the current policy to continue in effect and update the allocation. Chris Ziola motioned to adopt Appendix A, updating the allocation; Pat Eriksen seconded the motion. A roll call vote was taken. Aye votes were cast by McMaster, Krueger, Ziola, and Eriksen. No dissenting votes were cast. The motion passed. Accounts Payable – Review of Invoices and Expenses No invoices and expenses were pending. An invoice from Lauterbach & Amen is expected to arrive soon. New Members None. DeKalb Firefighters Pension Fund July 24, 2019 Page 3 of 3 Adam Karolus Retirement Effective Tuesday, July 31, 2019, at 7:00 AM, Adam Karolus retired from the Fire Department. Lauterbach & Amen prepared a Pension Calculation Worksheet for Adam Karolus, which was distributed to the group. Mr. Munch confirmed that sick time payout is calculated separately by Human Resources. Chris Ziola motioned to approve Adam Karolus’ pension calculations as presented; Pat Eriksen seconded the motion. A roll call vote was taken. Aye votes were cast by McMaster, Krueger, Ziola, and Eriksen. No dissenting votes were cast. The motion passed. Discussion ensued regarding the amounts and ensuring accuracy. Pat Eriksen confirmed the figures come from the pension agreement. Request for Benefits None Military Service Time Buyback Jeff Jossendal has begun the paperwork to retire. Further discussion will occur at the next meeting. Discussion of Topics for Next Meeting Agenda Jeff Jossendal Military Service Buyback COLA increase calculations October 10, 2019 at 8:00 AM – location to be determined. H. ADJOURNMENT Chris Ziola motioned to adjourn, Pat Eriksen seconded the motion, and the motioned passed by unanimous voice vote. The meeting adjourned at 9:09 AM. The next regular meeting of the DeKalb Firefighters Pension Board will be October 10, 2019, at 8:00 AM, location to be determined. Natalie Nelson Pension Board Recording Secretary Minutes approved by DeKalb Firefighters Pension Board on October 10, 2019.