Firefighters Pension Board

NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER NILES, IL 60714 MAY 12, 2020 The Board of Trustees of the Niles Firefighters' Pension Fund conducted its regular meeting via teleconference in accordance with Section 6 of Governor Pritzke/s Executive Order 2020-07 (COVID-19 Executive Order No.5), as extended by Executive Order 2020-33 (COVID-19 Executive Order No.31). The meeting was called to order at 8:29 a.m. by President Byron Tull. Trustees Present: Bob Greiner, Byron Tull, and Rich Teper Trustees Present Via Conference Call: Marimel Lim and Jim Grammas Officials Present: Rich Scipione, Pension Clerk Officials Present Via Conference Call: Tom Sawyer from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford, Ottosen DiNolfo; Trinette Garner, Lauterbach & Amen, LLP Public Comment: No public comment. Previous Minutes Approval: on a motion by Greiner, seconded by Tull, the minutes from the February 3, 2020 meeting were approved. +*axvt& Greiner, Tull, Teper, Lim, and Grammas NAYS: None ABSENT: None Motion carried. Presentation by Lauterbach and Amen LLP: Trinette Gardner from Lauterbach & Amen reviewed the Niles Firefighters' Pension Fund Monthly Financial Report for the month ended March 31, 2020. 1  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NTLES, [_ 60714 May t2,2O2O Total assets March 31, 2020 53?.,272,@2-L5 Liabilities March 31, 2020 55,406.00 Net Position Held in Trust for Pension Benefits 532,267,196-15 Trinette presented the bills and disbursements forJanuary 1, 2020 through March 31, 2020 for a total of S183,79.19, check numbers 30273-30289 and 50041. A motion was made by Tull, seconded by Greiner, to approve the March 31, 2020 financial statement. Upon a call ofthe roll: AYES: Greiner, Tull, Teper, Grammas, and Lim NAYS: None ABSENT: None Motion carried. A motion was made by Tull, seconded by Grammas, to approve the payment of the bills and disbursements of checks 30273-30289 and 50041 in the amount of S183,754.19. Upon a call of the roll: AYES: Greiner, Tull, Teper, Grammas, and Lim NAYS: None ABSENT: None Motion carried. The lllinois Department of lnsurance Annual Statement is due October 31$. Lauterbach and Amen are completing the audlt work and financials at this time. We are expected to have the report completed prior to the due date. The actuary will then begin work on this yea/s actuarial valuation. The recommended contribution is expected to increase due to Lauterbach and Amen's updated mortality table and the increase to the Tier 2 benefits that occurred as part of the consolidation law earlier this year. Bob Greiner was scheduled to attend a conference through IPPFA that was cancelled. IPPFA was instructed to keep the refund as a credit for future conferences. lnvestment Advisor's Report: Tom Sawyer from Sawyer Falduto presented the Fund's March 31, 2020 "Quarterly lnvestment Performance Report." 2  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NTLES, tt 60714 May t2,2O2O The 2020 first quarter ending market value was 532,246,043, with an investment loss of 54,386,41O. The total account return for the first quarter was negative 11.89% versus the benchmark of negative 12.89%. The equity rate of return for the second quarter was negative 21.59% versus the blended benchmark of negative 22-83%- fhe fixed income rate of return was 4.95% versus the benchmark of 4.!3Yo. Our current portfolio allocation as of March 37,202O:. Equities at 58.9%, Fixed lncome at 40.9yo, and Cash Equivalent at 0.2%. A motion was made by Tull, seconded by Teper, to approve the Quarterly Investment Performance Report for the quarter ending March31,2O2O. Upon a call ofthe roll: AYES: Greiner, Tull, Teper, Grammas, and Lim NAYS: None ABSENT: None Motion Carried- Tom Sawyer presented three recommended changes to our lnvestment Policy. The first recommendation is to comply with the lllinois Sustainable lnvesting (Public Act 101-0473). The new proposed language: "The Board recognlzes that material, relevant, and decision-useful sustainability factors have been or are regularly considered by the Board, within the bounds of financial and fiduciary prudence, in evaluating investment decisions. Such factors include, but are not limited to: (1) corporate governance and leadership factors; (2) environmental factors; (3) social capital factors; (4) human capital factors; and (5) business modet and innovation factors, as provided under the lllinois Sustainable lnvesting Act. (40 ILCS 5/1-113.6 and 1-113.17)." The next recommendation is to chanBe the fixed income and money market benchmark. The recommendation is to use a blended fixed income benchmark that inctudes the following; Barclays US Treasury lntermediate, Barclays U.S. Agency 7-10 Year, Barclays Taxable Municipal lntermediate, and Barclays Corporate lntermediate. The final recommendation includes changes to the Cash/Short Term benchmark. Tom is requesting that we change to the Morningstar Manager Benchmark Taxable Money Market lndex- This benchmark will provide a better benchmark to compare both performance and risk. A motion was made by Tull, seconded by Grammas, to direct Sawyer and Falduto to start using the three recommendations with final investment policy change to be presented to the Board for at its August meeting. Upon a call of the roll: 3  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttES, tL 60714 May 12, 2020 AYES: Greiner, Tull, Teper, Grammas, and Lim NAYS: None ABSENT: None Motion Carried. Old Business: All trustees completed and submitted their economic interest statement for Cook County. Bob Greiner stated he received notice from Cook County that we were missing economic interest statement. Bob confirmed that all statements were submitted and confirmed wlth Cook County that they were received. Carolyn Clifford is continuing to work on revisions to the Niles pension rules, regulation, and the updated forms. She has asked to table the item until next meeting. Carolyn provided an update on Brian Collins disability application. We are waiting for IME appointments from Dr. Samo and from Dr. Hutchinson, which have been delayed due to the COVID-19 pandemic restrictions. Carolyn is confident that we will be able to schedule their appointments in the near future. Carolyn reviewed an update on Yolanda Hansen's disability pension application, which has also been on hold due to the COVID-19 pandemic restrictions. We are waiting for IME appointments for Dr. Williamson-Link or Dr. Samo (occupational doctors), Dr. Krysto Gianullius, and Dr. Hutchinson. Carolyn is going to continue to attempt to make appointments for these IME's. Consideration of and Action upon Applicants for Admission: New firefighters, Conner Lemcke and Cristian Rojas, joined the Niles Fire Department. Conner Lemcke first day of service was February 18, 2020 and Cristian Rojas first day of service was April 13, 2020' They have applied for membership into the Niles Firefighters' Pension Fund. Conner and Cristian successfully completed their medical assessment. These applications are for the Tier 2 pension fund membership. A motion was made by Tull, seconded by Greiner, to approve Conner Lemcke and Cristian Rojas entry into the Fund. Upon a call ofthe roll: AYES: Greiner, Tull, Teper, Grammas, and Lim NAYS: None ABSENT: NONE Motion Carried. 4  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NTLES, tt 60714 May l2,2O2O After a small discussion on the annual election of the 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, Lim, Teper, Tull, and Grammas NAYS: None ABSENT: None Motion carried. A motion was made by Tull, seconded by Teper, to retain Richard Scipione as the Pension Clerk until April 30, 2021. Upon a call of the roll: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried- A motion was made by Greiner, seconded by Tull, approve the Penslon Clerk annual stipend of 51300. Upon a call of the roll: AYES: Greiner, Tull, Lim, Teper, and Grammas NAYS: None ABSENT: None Motion carried. Steve Zook is our only disabled member that is required to submit an lME. Byron Tull mailed the current form with a due date in August. The Board discussed the collection of owed monies from the estates of pensioners who have passed mid-month but received their full month benefit. Marimel Lim stated that the Board should be consistent in its collecting practices, no matter the amount of the overpayment or the likelihood of recoupment. Trinette will send request letters to the family of Gerald wagner and to the alternative payee on the wagner QILDRO to request repayment ofthe overpaid benefits in April 2020. Bob Greiner pensioners. instructed carolyn to include a new rule indicating the process of collecting overpayment to The Board updated the FolA officer and the oMA officer. Bob Greiner will be the new FolA officer and Rich Scipione will be the OMA officer. 6  NITES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NTLES, rL 60714 May 12, 2020 On a motion by Tull, seconded by Greiner, to approve Bob Greiner as the FolA officer and Rich Scipione as the OMA officer. Uponacall of theroll: AYES: Greiner, Tull, Teper, Lim, and Grammas NAYS: None ABSENT: None Motion carried. Carolyn provided an update to the Tier 2 combined creditable service issue. Senate Bill 3391 was introduced earlier this year that will address the Tier 2 combined service and the correction of a language issue with the current law. The bill is currently in the Assignments committee. Training: Carolyn distributed and reviewed training material to the Board- Training articles that were reviewed included Pension lnsights for the Second Quarter; a Client Alert providin8 Guidance for lllinois Pension Boards during COVID-19 Pandemic; IAFPD Fire Call Pension Pointers article on the Overview of Public Act 101-0610 Firefighter and Police Pension Fund Assets Consolidation; lllinois Department of lnsurance Public Pension Division The Siren. The Board has designated one hours of training for this meeting. Next Meeting: The next meeting is scheduled for August 19, 2020 at 8:30 a.m. The meeting was adjourned at 9:55 a.m. on a motion by Greiner, seconded by Tull, and approved upon a unanimous vote voice. Secretary Minutes approved by the Board of Trustees at its meetin8 on ?o20 Minutes prepored by Rich Scipione, Pension Clerk to the Fund 7