Firefighters Pension Board

NITES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER N[.fs, lt 60714 FEBRUARY 21, 2019 The meeting was called to order at 8:35 a.m. by President Byron Tull Trustees Present: Bob Greiner, Byron Tull, John Zeman, and James Grammas. Absent was Marimel Lim Officials Present: Dave Harrington 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. Retiree Rich Teper was in the audience. Public Comment: No public comment. Previous Minutes Approval: on a motion by Tull, seconded by Greiner, the minutes from the October 30, 2018 meeting were approved, subject to attorney review, by a unanimous voice vote. Presentation by Lauterbach and Amen LIP The Board reviewed the Monthly Financial Report for the month ending January 31, 2019. As of January 3r, 2079, the Fund held total assets of s32,556,922.88 and total liabilities of s4,698.00. The Net Position Held in Trust for Pension Benefits is 512,662,224.88. The Municipal Contribution is 52,9L8,77s.s7. Trinette presented the list of bills and disbursements. The Fund paid checks numbered 3020G30218; 50037, record from November 13, 2018 through January 3O 2019, for a total of 5170,147.52. 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, Zeman, and Grammas NAYS: None ABSENT: Lim Motion carried. 1  NITES FIREFIGHTERS' PENSION FUND BOARD OF TRUSIEES MEETING 8360 DEMPSTER NrtEs, t[ 60714 FEBRUARY 21, 2019 Trinette Gardner presented the revised 2019 annual pension benefit increases, as calculated by Lauterbach and Amen. On a motion by Tull, seconded by Grammat to accept the 2019 annual benefit increases as presented by Lauterbach & Amen. AYES: Greiner, Tull, zeman, and Grammas NAYS: None ABSENT: Lim Motion carried. Trinette reviewed the death audit service that Lauterbach and Amen provide. The service is complimentary and is no cost to the Fund. The program uses Life Status 360 and tracks obituaries. Megan stated that we should table this Agenda item awaiting attorney review of the authorization form. Byron and the Board agreed to table the item until next meeting. Greiner left at 8:49 lnvestment Advisor/s Report Dave Harrington from Sawyer Falduto presented the Fund's December 31,2018 "Quarterly lnvestment Report." The lnvestment Policy Guidelines were reviewed. The 2018 fourth quarterly ending market value was 530,250,512, with an investment return of S- 2,8O5,3M. The 2018 year-to-date investment return is S-1,506,300. The total account return for the fourth quarter was -8.46% versus the benchmark of -8.47%. The equity rate of return for the second quarter was -14.52% versus the blended benchmatkof -14-77%. The fixed income rate of return was negative 2.22% versus the benchmark of 2.54%. The Fund was rebalanced at the end of January 2019 with a market value of 537,629,295. Our current pordolio allocation as of December 3L, zOLg is Equities at 59.9%, Fixed lncome al 38.4%, and Cash Equivalent at 1.7%. Our fixed income duration is 4.89 years versus the benchmark of 6.02 years. There are no pending changes to the lnvestment Policy and/or Asset Allocation Parameters- On a motion by Tull, seconded by Grammas, to approve the lnvestment Adviso/s Report. 2  NIIfS FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NTLES, tt 60714 FEBRUARY 21, 2019 AYES: Tull, Zeman, and Grammas NAYS: None ABSENT: Lim and Greiner Motion carried. Consideration of and Action upon Applicants for Admission andlq Withdrawal from Fund: A new firefighter, Louis Panagopoulos, joined the Niles Fire Department on February 19, 2019. He has applied for membership into the Niles Firefighters' Pension Fund. Louis successfully completed his medical assessment. This application is for the Tier 2 pension fund membership. Louis also has previous Tier 2 credit from the Hanover Park Fire Department and is requesting information on how to purchase his credible service. On a motion by Tull, seconded by Grammas, to approve Louis Panagopoulos membership into the Fund. Upon a call ofthe roll: AYES: Tull, Grammas, and Zeman NAYS: None ABSENT: Lim and Greiner Motion carried. Joseph Florest passed away on December 9, 2018. He has a surviving spouse, Cheryl Florest, who is entitled to a spousal benefit of 57,481.81. On a motion by Tull, seconded by Grammat to approve Cheryl Florest's application for survivin8 spouse benefit of S7,481.81 per month. AYES: Tull, zeman, and Grammas NAYS: None ABSENT: Lim and Greiner Motion carried. Edward Sosnowski passed away on November 25,2OL8. He has a surviving spouse, Janice Sosnowski, who is entitled to a spousal benefit of 57,239.U.  NITES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttEs, tt 60714 FEBRUARY 21, 2019 On a motion by Tull, seconded by Grammas, to approve Janice Sosnowski's application for surviving spouse benefit of 57,239.84 per month. AYES: Tull, Zeman, and Grammas NAYS: None ABSENT: Greiner and Lim Motion carried. Old Business Byron explained the cost of the Public Official Bond lnsurance. The Village of Niles bids out the cost of the liability insurance as part of their liability insurance program. The cost of the insurance is 512,000 for both the Fire and Police Pension Fund. The Fire Department Pension Fund is responsible for 56,000. There was a question of Commissioners Barry Mueller/s reemployment within the Vlllage. Barry is over the age of fifty-nine and the issue of reemployment does not apply to him. New Business 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. There was no further update to the tax levy amount from the Village of Niles Megan presented the Niles Pension Funding Report that shows the employer contribution vs the various statutory minimums. The Village is contributing the actuaq/s recommended contribution. Bob Greiner returned at 9:11 The Board reviewed the 2018 fillngs and the annual timeline for 2019. Byron confirmed that all required documents were filed on time in 2018. Megan distributed the updated 2019 '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 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 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. 4  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER N|LES, tL 60714 FEBRUARY 21, 2019 Retired Pension Trustee John Zeman will be stepping down after today's meeting. 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. Meganne reviewed the retainer proposal for the Niles Firefighters' Pension Fund. The proposed monthly retainer would be 5455.00 with an annual cost of 55,280.00 beginning February 1, 2019. This would be for a one year agreement. The retainer covers telephone calls between the Board and our attorneys for any routine matter (not including disabilities or litigation), e-mail exchanges between the Board and our attorneys for any routine matter (not including disabilities or litigation), and attendance at all four of the Fund's regular quarterly meetings. On a motion by Tull, seconded by Grammas, to approve Ottosen Britz Kelly Cooper Gilbert & DiNolfo Law firm one year retainer proposal for a total cost of 55,580.00. AYES: Tull, Zeman, Greiner, and Grammas NAYS: None ABSENT: Lim Motion carried. Training: Meganne presented training materials on Timeline Requirements for Article 4 Firefighter Pension Funds, 2019 Quarterly lnsights for Pension Trustees, and a pension article lhe Boftle Between A Porsimonious Municipolity ond a Covetous Pension Boord. The 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 16, 2019 at 8:30 a.m. The meeting was adjourned at 9:26 a.m. on a motion by Tull, seconded by 6reiner, and approved upon a unanimous vote voice. 5  NII.ES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttEs, tt 50714 FEBRUARY 21, 2019 Bob Greiner, Secretary Minutes approved by the Board of Trustees at its meeting on 20L9 Minutes prepored by Rich Scipione, Pension Clerk to the Fund. 6