Firefighters Pension Board Fund

Geneva Firefighters Pension Fund Meeting Minutes – January 23, 2014 Present: Jerry Koster, Pat McQueeny, Tom Dahl, Steve Olson Absent: Frank Johnson Also Present: Craig Larsen, AHC Advisors The meeting was called to order by President Koster at 9:00 am in the fire department conference room. 1. Review minutes from previous meetings held October 24, 2013, Dec 9, 2013, and Dec 23, 2013. President Koster asked the Trustee’s to consider the meeting minutes for October 24, 2013, December 9, 2013, and December 23, 2013. They were previously distributed in electronic form to all board members. Pat McQueeny Moved to accept the minutes as presented 2nd by Tom Dahl Ayes 4 Nays 0 2. Review performance of pension fund and investment and recent transactions. President Koster turned the floor over to Craig Larsen for an update on the restructuring of the Fund assets and recent performance. A. Craig recommended the Board draft a letter (attached) to be sent to Sawyer-Falduto that outlines the Board’s investment goals. Several of the points were a part of the Request for Proposal that was used to select the investment manager (Sawyer-Falduto) and, as such, should not come as a surprise to them. B. Craig the reviewed the recent performance of the Fund with the understanding that restructuring of the investments is still taking place. The Market value of the Fund at this time is $12,217,157 which is an increase of $335,021 over the previous year. Looking at the known fixed expenses of the fund it appears the quarterly expenses will be about $50,000 and there is enough cash on-hand to manage those expenses. C. As of December 31, 2013, approximately 56% of the funds’ assets are allocated to fixed income, while the investment policy calls for 46%. Craig lead a discussion with the board members on ways the fund can be restructured to better meet the investment policy adopted by the board. The Trustee’s can elect to give the investment manager up to 6 months to make adjustments to the portfolio by selling some of the investments and reinvesting, or it could be done more rapidly by divesting certain investments  immediately. A period of discussion followed with a consensus developing to make the change as soon as possible without incurring penalties for early divesture. President Koster moved to instruct Sawyer-Falduto to transfer $1.3 million to Fidelity in accordance with the investment policy. 2nd by Pat McQueeny Ayes 4 Nays 0 3. Review and vote on COLA increases for pensioners President Koster provided the list of annual benefit increases submitted by Lauterbach & Amen for calendar year 2014 (attached). The total benefit payment for the year is $290,823.48. Pat McQueeny moved to approve the increases as presented 2nd by Tom Dahl Ayes 4 Nays 0 4. Consider bills for payment. Bills for payment total $6,028.14. (list attached) Tom Dahl moved to approve the bills as presented. 2nd by Steve Olson Ayes 4 Nays 0 5. Entertain comments from trustees. None 6. Entertain comments from public attendees (five minutes limit per attendee). None Pat McQueeny moved to adjourn the meeting at 10:00 am 2nd by Tom Dahl Ayes 4 Nays 0 Absent 1 Respectfully submitted Steve Olson