Firefighters Pension Board

Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, l[ 60714 November 2, 2017 The meeting was called to order at 8:30 a.m. by President Byron Tull. Trustees Present: Byron Tull, Bob Greiner, Marimel Lim, Jim Grammas, and Wally Blase. Officials Present: Tom Sawyer and john Falduto from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford, Ottosen Britz; and Steve Earnhardt, Lauterbach & Amen, LLP Public Comment: No public comment. Approval of Minutes: on a motion by Greiner, seconded by Grammas, the minutes from the August 10, 2017 quarterly meeting were approved by a unanimous voice vote. Byron reviewed the closed meetinB minutes as required semi-annually. The minutes reviewed were: November 30, 2002 February 4, 2009 December 15, 2004 September 28, 2009 February 9, 2005 October 15, 2009 February 26, 2005 February 8, 2010 April 11, 2006 April 7, 2010 Decembe17,2006 September 7, 2010 January 8, 2008 August 25, 2015 On a motion by Tull, seconded by Blase, to keep the listed meeting minutes closed for another six months: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: NOne ABSENT: None Motion carried- 1  Niles FirefighteB' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lt 60714 November 2, 2017 Financial and Treasure/s Report: Steve Earnhardt from Lauterbach and Amen reviewed the Statement of Net Position As of September 30,20L7. The total assets as of September 30,2OL7 were 531,144,024.39 and total liabilities of 55,180.75. The net position held in trust for pension benefits is S31,138,843.il. Steve presented the monthly financial statements, The Fund paid checks numbered 30124-30136 and 50031, record from July 5, 2017 through September 27, 2017, for a total of S153,331.m. A motion was made by Tull, seconded by Grammas, to approve the financial report including bills and disbursements as presented. Upon a call of the roll: AYES: Greiner, Tull, Grammas, Lim, and Blase NAYS: None ABSENT: None Motion carried. The lllinois Department of lnsurance Annual Statement was completed and filed with the Department of lnsurance on November 1, 2017. A motion was made by Tull, seconded by Grammas, to approve the Department of lnsurance Annual Statement as presented. Upon a call of the roll: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. Steve presented the final copy of the actuarial valuation. The draft actuarial results that were presented at the last pension meetin8 have been finalized. There were no changes made to the draft copy. On a motion by Tull, seconded by Grammas, to accept the May 1, 2016 through April 30,2Ol7 actuarial report prepared by Lauterbach and Amen. Upon a callofthe roll: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. 2  Niles Firefighterc' Pension Fund Board of Trustees Meeting 8360 Dempster Niles, lL 50714 November 2, 2017 The Village of Niles audit was completed and utilized for the Statement of Changes in Plan Assets. Steve presented the Village of Niles Combining Statement of Changes in Fiduciary Net Position dated April 30, 20L7 . lnvestment Advisor's Report: Tom Sawyer from Sawyer Falduto presented the Fund's September 30,2OL7 "Quarterly lnvestment Report." The 2017 third quarterly ending market value was 531,124,299, with an investment return of $935,515. The total account return for the third quarter was 3.7% versus the benchmark of 3.29%. The equity rate of return for the second quarter was 5.88% versus the blended benchmatk of 5.48%. The fixed income rate of return was 0.99/o versus the benchmark of 0.67%. Our current portfolio allocation as of September 30,2017: Equities at 57.2%, Fixed lncome at 42.3%, and Cash Equivalent at 0.5%. There are no pending changes to the lnvestment Poliry and/or Asset Allocation Parameters. This item will be included on the Agenda in the future. On a motion by Greiner, seconded by Blase, to accept the lnvestment Report endin8 September 30, 2017. Upon a call of the roll: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. Old Business: Carolyn Clifford from Ottosen Britz presented the 2017 tax levy recommendation letter that will be sent to the Village. The Board requests the Village of Niles levy the recommended actuarial amount of 53,799,026, an increase of 7.7% from the prior year. On a motion by Greiner, seconded by Grammas, to approve the Tax Levy Request from the Niles Firefighters' Pension Fund for 2O!7 ot 53,799,026 and send the letter to the Village of Niles. Upon a call of the roll: 3  Niles Firefighters' Pension Fund Board of Trustees Meetin8 835O Dempster Niles, lL 60714 November 2, 2017 AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. Steve presented the Municipal Compliance Report for the fiscal year ended April 30, 2017. On a motion by Greiner, seconded by Grammas, to approve and adopt the Municipal Compliance Report. Upon a call of the roll: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. Carolyn presented the resolution of appreciation for former Trustee Jim Callero. On a motion by Greiner, seconded by Blase, to approve the resolution of appreciation for former Trustee Jim Callero. Upon a call ofthe roll: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. Byron reviewed the status of annual affidavits of eligibility. All affidavits of eligibility have been received by Lauterbach and Amen and were given to the Fund. The authorization of signatory authority was tabled to next meeting. The annual IME'S were completed and were reviewed last quarterly meeting. Lauterbach and Amen completed an enga8ement letter for their services at a reduced cost. Carolyn has reviewed the engagement letter and changes were made to the letter to comply with Carolyn's request. The engagement letter is a five-year agreement that can be cancelled at any time. 4  Niles FirefighteR' Pension Fund Board of Trustees Meeting 8350 Dempster Niles, lt 60714 November 2, 2017 On a motion by Tull, seconded by Lim, to accept the engagement letter as written and to approve the agreement until the yeat 2022. Upon a call ofthe roll: AYES: Greiner, Tull, Lim, Grammas, and Blase NAYS: None ABSENT: None Motion carried. Consideration of an Action Upon Applicants for Admission/and or Withdrawal from Fund: Four new firefighters joined the Niles Fire Department: Firefighter/Paramedic Dominick Ferrara, start date August !4,20!7; Firefighter Paramedic Josh ffest, Firefighter/Paramedic Frederick Meek, and Firefighter/Paramedic James Ruth, start date September 25, 2OL7. They have applied for membership into the Niles Firefithters' Pension Fund. All four members have passed all their medical assessments. All applications are for the Tier 2 pension fund membership. On a motion by Tull, seconded by Lim, to approve membership into the Fund Domanick Ferrara, Frederick Meek, Joshua Pfest, and James Ruth. Upon a call ofthe roll: AYES: Greiner, Tull, Blase, Grammas, and Lim NAYS: None ABSENT: None Motion carried. Michael Segert applied for a refund from the Fund. His refund was issued by Lauterbach and Amen in the amount of 53,46,4.60. On a motion by Tull, seconded by Greiner, to approve Michael Segert's withdrawal from the Fund and refund of contributions. Upon a call ofthe roll: AYES: 6reiner, Tull, 8lase, Grammas, and Lim NAYS: None ABSENT: None Motion carried. 5  Niles Firefighters' Pension Fund Board of Trustees Meeting 8360 Dempstet Niles, lL 60714 November 2, 2017 New Business: Thomas Marcotte benefits were terminated upon his death, October 21,2077. There is no surviving spouse. Carolyn and Byron discussed the annual reports to members. Carolyn had an idea to give the members an annual report discussing the Fund but after discussing with the Police Pension Board the idea was scrapped due to the concern that the information was difficult to concisely communicate without context. Training: Carolyn distributed and reviewed training material for the Board. Training included an article from Ottosen Britz Pension Practice Quarterly lnsights for Pension Trustees (Fourth Quarter 2017) on the lllinois Municipal League's consolidation proposals for firefighter and police pension funds. The Board has designated one hour of training for this meeting. Closed Meeting: There was no closed session. Schedule 2018 Meetings: The Board reviewed the proposed 2018 schedule: February 8, MaY 24, August 22, and October 30 at 8:30 a.m. at Niles Fire Department Station 2. On a motion by Tull, seconded by Greiner, to approve the 2018 regular meeting schedule, the motion was approved by a unanimous voice vote. The meeting was adjourned at 9:41 a.m. on a motion by Greiner, 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 t B 2018. Minutes prepared by Rich Scipione, Pension Clerk to the Fund 6