Firefighters Pension Board

NITES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NrtEs, rt 60714 FEBRUARY 8, 2018 The meeting was called to order at 8:31 a.m. by President Byron Tull. Trustees Present: Bob Greiner, Byron Tull, Walter Blasel Marimel Lim, and James Grammas. Officials Present: Tom Sawyer from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Meganne Trela, Ottosen Britz; Trinette Gardner, Lauterbach & Amen, LLP; Rich Scipione, Pension Clerk to the Fund. Public Comment: No public comment. Previous Minutes Approval: On a motion by Tull, seconded by Blase, the minutes from the November 2, 2017 meeting were approved by a unanimous voice vote. Presentation by Lauterbach and Amen LLP The Board reviewed the Monthly Financial Report for the month endinB January 31, 2018. As of January 3L, 2078, the Fund held total assets of s33,527,563.61 and total liabilities of s5,180.75. The Net Position Held in Trust for Pension Benefits is 533,522,382.86. Byron Tull presented the list of bills and disbursements. The Fund paid checks numbered 30145-30158; 50033, record from November 13, 2017 through January 30, 2018, for a total oJ 5L62,7L4.8L. A motion was made by Tull, seconded by Greiner, to approve the financial report, and authorize payment of the bills and disbursements as presented. upon a call of the roll: AYES: Greiner, Tull, Blase, Lim, and Grammas NAYS: None ABSENT: None Motion carried. Trinette Gardner presented the revised 2018 annual pension benefit increases, as calculated by Lauterbach and Amen.  N:LES F:REF:GHTERS'PENSiON FUND BOARD OF TRUSTEES MEET:NG 8360 DEMPSTER N:LES,lL 60714 FEBRUARY 8,2018 0n a motion by Tu‖ ′seconded by Greiner′ to accept the 2018 annual benentincreases as presented by Lauterbach&Amen AYES: Greiner, Tull, Blase, Lim, and Grammas NAYS: None ABSENT: None Motion carried. The active member statements will be distributed in the near future. lnvestment Adviso/s Report Tom Sawyer from Sawyer Falduto presented the Fund's December 3L,2Ol7 "Quarterly lnvestment Report." The lnvestment Policy Guidelines were reviewed. The 2017 fourth quarterly ending market value was 532,Lf4,554, with an investment return of 5!,024,318. The 2017 year-to-date investment return is S3,792,250. The total account return for the fourth quarter was 13.28% versus the benchmark of 12.12%. The equlty rate of return for the second quarter was 22.t2Yo versus the blended benchmark of 20.goyo. The fixed income rate of return was negative 2-75% versus the benchmark of 2.30%. Our current portfolio allocation as of December 31,2077 is Equities at 56.6%, Fixed lncome at 42.O%, and Cash Equivalent at 1.4%. Our fixed income duration is 5.09 years versus the benchmark of 6.13 years. There are no pending changes to the lnvestment Policy and/or Asset Allocation Parameters. On a motion by Tull, seconded by Blase, to approve the lnvestment Advisor's Report. AYES: Greiner, Tull, Blase, Lim, and Grammas NAYS: None ABSENT: None Motion carried. Old Business There was no old business presented. 2  N:LES FiREF:GHTERS'PENSiON FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER N:LES′ :L60714 FEBRUARY 8,2018 New Business Norbert Ludkowski passed away on December 17,2017. He had a surviving spouse, Antoinette Ludkowski, who is entitled to a spousal benefit of S3,310.75. On a motion by Tull, seconded by Grammas, to approve Antoinette Ludkowski's application for surviving spouse benefit of 53,310.75 per month. AYES: Greiner, Tull, Blase, Lim, and Grammas NAYS: None ABSENT: None Motion carried. Byron and Bob sent the list of required filers for statements of economic interests to cook County and received documentation that they received the information. Meganne explained that all trustees must file a Statement of Economic lnterest with Cook County by May 1. Byron presented the Confirmation of Tax Levy amount from the Village of Niles of S3,799,025. On a motion by Tull, seconded by Grammas, to approve the confirmation of tax levy in the amount of S3,799,026 from the Village of Niles fiscal year 2017. AYES: Greiner, Tull, Blase, Lim, and Grammas NAYS: None ABSENT: None Motion carried. Meganne presented the quarterly insights article. The article states the Department of lnsurance's new actuary, GRS, is changing the assumptions for the DOI valuations. The new applicable investment return for funds over S10 million will be 6.5%. Grammas stated the Niles Police Pension Fund is considering changing the rate of return to lower percentage point. The Fire Pension Fund should also consider lowering the rate of return to 6.5%. The DOI rate of return had been 7 .OYo for years, and was lowered to 6.75Yo a few years ago when Foster & Foster began handling the valuations for the DOl. The Board reviewed the 2017 filings and the annual timeline for 2018. Byron confirmed that all required documents were filed on time in 2017. Megan distributed the updated 2018 "Timeline Requirements for Article 3 Police Pension Funds and Article 4 Firefighter Pension Funds." 3  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER N|LES, rL 60714 FEBRUARY 8, 2018 The Fund has no assets held in lllinois finance entities and is not required to obtain annual servicer certifications. We have a letter from 5/3'd Bank stating that it is federally regulated and it is not necessary to obtain an annual servicer certification. The spring nomination for the retired member pension trustee will be sent to all retired pension members. 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. Joyce White contacted Bob Greiner about receiving QILDRO benefits from the first wife of deceased pensioner Jeff Riemer. Jeff Riemer received a non-duty disability pension beginning in 2008 and had a spouse prior to retirement. There was a QILDRO on file from a previous marriage. Jeff passed away in TOLZ and now Joyce White is requesting to receive QILDRO benefits from Jeffls current wife. Carolyn contacted Mrs. White's attorney and educated them about the law. There is no action to be taken. Jim Grammas completed his 32 hours of pension training and completed his open meetings act training. He will forward the certificate to Byron. Training: Meganne presented training materials on Timeline Requirements for Article 4 Firefighter Pension Funds and a pension article Keeping Pension Funds Heolthy in the New Yeor.fhe Board designated one hour of training for the training material. Closed Meeting: There was no closed session. Next Meeting: The next meeting will be on May 24, 2018 at 8:30 a.m. The meeting was adjourned at 9:30 a.m. on a motion by Tull, seconded by Greiner, and approved upon a unanimous vote voice. Bob Greiner, Secretary Minutes approved by the Board of Trustees atits meeting on̲̲1」 Lζ 4̲̲― 」 二とヽ 」ンL̲̲̲̲̲̲′ 2018 lチ Mわ υにsρ ″ ρα″ d by Rlch Scrp′ 0,c Persわ ηClett r● め e ttnd 4