Firefighters Pension Board

NII."ES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NrtEs, tt 60714 FEERUARY 2, 2017 The meeting was called to order at 8:30 a.m. by President Byron Tull Trustees Present: Bob Greiner, Byron Tull, Walter Blase, Marimel Lim, and James Callero. Officials Present: John Falduto from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford, Ottosen Britz; Rich Scipione, Pension Clerk to the Fund. Public Comment: No public comment. Previous Minutes Approval: On a motion by Blase, seconded by Callero, the minutes from the November 1,2016 meeting were approved by a unanimous voice vote. Presentation by lauterbach and Amen LIP The Board reviewed the Monthly Financial Report for the month ending December 31,2016. As of December 31,2076, the Fund held total assets of 528,412,006.33 and total liabilities of 53,529.33. The Net Position Held in Trust for Pension Benefits is 528,408,377.OO. Byron Tull presented the monthly financial statements. The Fund paid checks numbered 30086-30095, record from November 7, 2015 through December 30, 2015, for a total of 595,699.69. A motion was made by Callero, seconded by Greiner, to approve the financial report, and authorized payment of the bills and disbursements as presented. Upon a call of the roll: AYES: Greiner, Tull, Callero, Lim, and Blase NAYS: None ABSENT: None Motion carried. Byron Tull presented the revised 2017 annual pension benefit increases, as calculated by Lauterbach and Amen. 1  NITES FIREFIGHTERY PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttE [.60714 FEBRUARY 2, 2017 On a motion by Tull, seconded by Callero, to accept the 2017 annual benefit increases as presented by Lauterbach & Amen. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None Motion carried. The new Village Treasurer was given the 2017 pension board meeting schedule and will be present at future meetings. Investment Advisorrs Report John Falduto and Tom Sawyer (over the phone) from Sawyer Falduto presented the Fund's December 31, 2015 "Quarterly lnvestment Report." The lnvestment Policy Guidelines were reviewed. The 2016 fourth quarterly ending market value was 528,391,602, with an investment return of S258,817. The 2016 year-to-date investment return is S1,849,145. The total account return for the fourth quarter was 0.90% versus the benchmark of 0.83%. The equity rate of return for the second quarter was 4.28% versus the blended benchmark of 4.42yo. The fixed income rate of return was negative 3.35% versus the benchmark of negative 3.7ZVo. Our current portfolio allocation as of December 31, 2016 is Equities at 55.5%, Fixed lncome at 42.O%, and Cash Equivalent at 1.5%. Our fixed income duration is 5.10 years versus the benchmark of 5.94 years. There are no pending changes to the lnvestment Policy and/or Asset Allocation Parameters. On a motion by Tull, seconded by Blas€, to approve the lnvestment Adviso/s Report AYES: Greiner, Tull, Blasg Lim, and Callero NAYS: None ABSENT: None Motion carried- 2  NITES FIREFIGHTERS' PENSION FUNO BOARD OF TRUSTEES MEETII{G 8350 DEMPSTER NTLES, r[ 60714 FEBRUARY 2, 2017 At our next meeting the Board will update the Authorization of Signatory Authority to include all names of people who have signatory authority from Lauterbach and Amen. OId Business The Board has received affidavits for eligibility for all retired members. Going fonrvard, there will be a strict guideline and timeframe when these need to be completed. There is no new information ofJim McDonaugh's child support payments. New Business Carolyn reviewed the annual attorney retainer agreement. Beginning February 1, 2017, the Niles Firefighters' Pension Fund will be billed a retainer of 5,440.m per month for the following services: . Unlimited telephone calls between the Fund and our attorney excluding conversations involving disability matters or litigation. o Unlimited e-mail exchanges between the Fund and our attorney excluding conversations involving disability matters or liti8ation. . Attendance at all four (4) of the Fund's regular quarterly meetangs. . Review and revision of draft minutes and meeting agendas for all regular and special meetings, except meetings involvin8 disability matters or litigation. On a motion by Tull, seconded by Greiner, to approve the Annual Attorney Retainer. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None Motion carried. Jon Raz applied for regular retirement on November 30, 2016. He had 27 years and 9 months of creditable service with a total salary of 5103,550.98. His monthly pension is 55,985.54 with his first increase due December 1, 2017. On a motion by Tull, seconded by Callero, to approve Jon Raz's regular retirement pension with a monthly pension of S5,985.54. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None 3  I{ILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NtrEs, lt 50714 FEBRUARY 2, 2017 ABSENT: None Motion carried. Carolyn prepared and presented recommended Board rule and form changes to the Board. The Board received these changes via email prior to the meeting, memorandum dated January 26, 2017, Proposed 2017 Rules and Forms Amendments. On a motion by Greiner, seconded by Callero, to approve the resolution amending the rules ofthe Board of Trustees of the Niles Firefighters' Pension Fund. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None Motion carried. Greiner sent the list of required filers for statements of economic interests to Cook County and received documentation that they received the information. Carolyn explained that all trustees must file a Statement of Economic lnterest with Cook County by May 1. carolyn presented the Confirmation of Tax Levy amount from the Village of Niles of 55,152,fl)5. The Board reviewed the 2016 filings and the annual timeline for 2017. Carolyn confirmed that all required documents were filed on time in 2016. Carolyn distributed the updated 2017 "Timeline Requirements for Article 3 Police Pension Funds and Article 4 Firefighter Pension Funds." The Fund has no assets held in lllinois finance entities and is not required to obtain annual servicer certifications. We have a letter from BMO Harris stating that it is federally regulated and it is not necessary to obtain an annual servicer certification. The spring nomination for one active member pension trustee will be posted at both stations. lf there is only one person nominated for the position, the Board may dispense with the formal election and declare the only nominee elected by acclamation. Training: Carolyn presented training materials on Timeline Requirements for Article 4 Firefighter Pension Funds and the Board designated one hour of training for the training material. Closed Meeting: There was no closed session. 4  NILES FIREFIGHTERY PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttEs, tt 60714 FEBRUARY 2, 2017 Next Meeting: The next meeting will be on May 18,2017 at 8:30 a.m. The meeting was adjourned at 9:41 a.m. on a motion by Callero, seconded by Tull, and approved upon a unanimous vote voice. Respectfully submitted, Bob Greiner, Secretary Minutes approved by the Board of Trustees at its meeting on 2017 . Minutes prepored by Rich Scipione, Pension Clerk to the Fund 5