Firefighters Pension Board

NITES FIREFIGHTERY PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttEs, tL 50714 MAY 24, 2018 The meeting was called to order at 8:30 a.m. by President Byron Tull. Trustees Present: Bob Greiner, Byron Tull, Jim Grammas, and John Zeman. Absent was trustee Marimel Lim. Walter Blase was present but not a voting member. Officials Present: Tom Sawyer from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford, Ottosen Britz; Trinette Gardner, Lauterbach & Amen, LLP; a representative from the Law Firm of Kahn, Swick, & Foti, LLc; and Rich Scipione, Pension Clerk for the Fund. Public Comment: No public comment. Previous Minutes Approval: On a motion by Tull, seconded by Grammas, the minutes from the February 8, 2018 meeting were approved by a unanimous voice vote. President Byron Tull reviewed the closed meeting 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 25, 2005 February 8, 2010 April 11, 2006 April 7, 2010 Decembe17,2006 September 7, 2010 January 8, 2008 on a motion by Tull, seconded by Grammas, to keep the listed meeting minutes closed for another six months. AYES: Greiner, Tull, Zeman, and Grammas NAYS: None ABSENT: Lim Motion carried. 1  NITES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER N|LES, tt 60714 May 24,2O18 Presentation by Kahn, Swick & Foti, LLC The Board heard a presentation from the law firm of Kahn, Swick, & Foti, LLC. "KSF" is a boutique law firm with offices in New York City, San Francisco, and Louisiana, dedicated solely to the practice of class action and individual investors securities litigation. They will monitor securities for shareholder fraud. The service is no cost to the Fund and is only charged when a settlement. Fee is one-third of the settlement. This law firm would be in addition to the service Chicago Clearing provides to the Fund. There was no Board action on this agenda item. Presentation by Lauterbach and Amen LLP: Trinette Gardner from Lauterbach & Amen reviewed the Niles FirefighterJ Pension Fund Monthly Financial Report for the month ended April 30, 201& which was also the fiscal year end report. Total assets April 30, 2018 532,234,224.78 Liabilities April 30,2018 55,180.75 Net Position Held in Trust for Pension Benefits 532,229,U4.03 Trinette presented the bills and disbursements for February 7,2018 through Aptil27,7OL8fot a total of S161,562.62, check numbers 30159-30175 and 50034. A motion was made by Tull, seconded by Grammas, to approve the payment of the bills and disbursements and to approve the April 30, 2018 financial statement. Upon a call of the roll: AYES: Greiner, Tull, Grammat and Zeman NAYS: None ABSENT: Lim Motion carried. The lllinois Department of lnsurance annual report is due October 31d. Lauterbach and Amen are completing the audit work and financials at this time. we are expected to have the report completed prior to the due date. The actuarial report will be in draft form by the next quarterly meeting. Lauterbach and Amen are scheduled to present the draft in August. 2  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttEt tt 60714 May 24, 2018 Jim Grammas discussed the rate of return for the upcoming actuarial studies. The Board and the Village of Niles should discuss lowering the rate of the return to a more appropriate rate. The Department of lnsurance lowered its rate of return to 6.25% and the Board may need to adjust to this same level. Carolyn discussed having a meeting with the Fire Pension Board, Police Pension Board, and the Finance committee regarding the importance of changlng the rate of the return. Jim McDonaugh contacted Bob Greiner about the state COLA raises for his disability pension. iim requested that he receives his pension raise on his birthday. Bob Greiner instructed Jim that the pension increase begins on the January of the following year. lnvestment Adviso/s Report: Tom Sawyer from Sawyer Falduto presented the Fund's March 31, 2018 "Quarterly lnvestment Performance Report." The 2018 first quarter ending market value was 531,993,847, with an investment loss of S155,649. The total account return for the first quarter was -0.46% versus the benchmark oI -O.79%. The equity rate of return for the second quarter was -0.12% versus the blended benchmark of 4.67yo. The fixed income rate of return was -1.04% versus the benchmark of -1.15%. Our current portfolio allocation as of March 3L,20t8i Equities at 56.4%, Fixed lncome at 43.O%, and Cash Equivalent at 0.5%. There are no pending changes to the lnvestment Policy. A motion was made by Tull, seconded by Greiner, to approve the Quarterly lnvestment Performance Report for the quarter ending March 31, 2018. AYES: Greiner, Tull, Grammas, and Zeman NAYS: None ABSENT: Lim Tom presented the Annual lnvestment Professional Review and Oversight Checklist that he received from Carolyn. He provided all necessary documents and answered all questions from this checklist. This will be an annual exercise the Board and our lnvestment Advisor. Old Business: All trustees completed and submitted their economic interest statement for Cook County. 3  NILES FIREFIGHTERY PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NTLES, tL 60714 May 24,2OlA The resolution authorizing signature authority is an ongoing issue and is tabled until the next quarterly meeting. Consideration of and Action upon Applicants for Admission: A new firefighter, Kyle Schrems, joined the Niles Fire Department on May 1, 2018. He has applied for membership into the Niles Firefighters' Pension Fund. Kyle successfully completed his medical assessment. This application is for the Tier 2 pension fund membership. On a motion by Tull, seconded by Grammas, to approve Kyle Schrems membership into the Fund. Upon a call of the roll: AYES: Greiner, Tull, Grammas, and Zeman NAYS: None ABSENT: Lim Motion carried. Lieutenant Richard Teper applied for regular retirement on May 2, 2018. He had thirty-two years and one month of creditable service with a total salary of S121,664.51. His monthly pension is $7,504.03. On a motion by Greiner, seconded by Tull, to approve Richard Tepe/s regular retirement pension with a monthly pension of 57,504.03. AYES: Greiner, Tull, Grammas, and Zeman NAYS: None ABSENT: Lim Motion carried. New Business: Joan Lemanski passed away on February 20,2OL8. She was a surviving spouse and benefits have been terminated. On a motion by Tull, seconded by Grammat to approve termination of benefits to Joan Lemanski. AYES: Greiner, Tull, Zeman, and Grammas NAYS: None ABSENT: Lim 4  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER N|LES, tL 60714 May 24, 2018 Motion carried. Carolyn reviewed lmproper purchasing of class shares of other pension funds that she represented that involved the previous investment advisor, Capital Gaint lnc. The broker involved, Cetera, has recently refunded excessive fees involved with those mutual fund shares. Carolyn will send a letter of inquiry to cetera about purchase dates and class of shares. PSEBA Ordinance was not completed prior to the pension board meeting. This item is tabled until the next quarterly meeting. Walter Blase's term as pension trustee expired on May 1,2018. Nomination letters were sent to all retired pension members. The Board received nominations for Walter Blase and John Zeman. Walter Blase declined/withdrew his nomination and John Zeman was the only person nominated. Since there is only one person nominated for the position, the Board dispensed with the formal election and declared the only nominee elected by acclamation. On a motion by Tull, seconded by Greiner, the Board dispensed with the formal election and declared the only nominee elected by acclamation being John Zeman. The term is a three-year term, May 1, 2018 April 30,2021. Upon a call ofthe roll: AYES: Greiner, Tull, Zeman, and Grammas NAYS: None ABSENT: Lim Motion carried. After a small discussion on the annual election ofthe Board president and secretary, a motion was made by Tull, seconded by Grammas, to elect Byron Tull as President of the Board and Bob Greiner as Secretary to the Board. Upon a call of the roll: AYES: Greiner, Zeman, Tull, and Grammas NAYS: None ABSENT: Lim Motion carried. A motion was made by Tull, seconded by Greiner, to retain Richard Scipione as the Pension Clerk until April 30, 2019. Upon a call ofthe roll: AYES: Greiner, Tull, Zeman, and Grammas NAYS: None 5  NILES FIREFIGHTERS, PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER N|LES, tL 50714 May 24,20la ABSENT: Lim Motion carried. A motion was made by Tull, seconded by Grammas, approve the Pension Clerk annual stipend of 51300. Upon a call of the roll: AYES: Greiner, Tull, Zeman, and Grammas NAYS: None ABSENT: Lim Motion carried. Steve Zook is our only disabled member that is required to submit an lME. Byron Tull mailed it out with a due date in AuBust. Training: Carolyn distributed training material for the Board to review. Training article that was reviewed included disability benefit calculations post-City of Moline case. The Board has designated one hour of training for this meeting Byron asked about clarification on two issues: audio and video broadcast of pension fund meetings and combining of the police and fire pension funds. Carolyn advised these are proposed bills and they have not been approved by the lllinois General Assembly. The combining of funds are being investigated by COGFA with a report expected next year. Next Meeting: The next meeting is scheduled for August 22, 2018 at 8:30 a.m. The meeting was adjourned at 10:28 a.m. on a motion by Greiner, seconded by Lim, and approved upon a unanimous vote voice. Respectfully submitted, Robert Greiner, Secretary Minutes approved by the Board of Trustees at its meeting on Aur,nrt )-),ro* Minutes prepored by Rich Scipione, Pension Clerk to the Fund 6