Firefighters Pension Board

NII"ES FINEFrcHTERS'P€ SIOI{ FUND BOARO OF TRUSTEES MEEnNG 8:I5O DEMP5TER NttEs, tt 60714 Autun 19, 2020 The Board ofTrustees ofthe Niles tirefighteB' Pension Fund conducted its regular meeting via video and teleconference in accordance with Section 7(e) of the Op€n MeetinSs Act (5 ILCS 120/7(e)1, recently amended by Public Act 101{flO (Government EmerBency Administration Act) as a resuh of the State's disaster declantion regarding the COVID-l9 pandemac and the Board President's determination that an in-person meeting was not practical or prudent, pursuant to notice. The meeting was called to order at 8:30 a.m. by Presirent Byron Tull. Trustees Pr6€nt: Bob Greirrcr, Marimel Lim, Jim Grammas, and Eyron Tull- Abs€nt was Rich Teper. Officials Present: Tom Sawl,er from Sawyer Falduto Ass€t Mana8ement, uC, lnvestment Advisor to the Fund; Attomey Carolyn Clifford, Ottosen DiNolfo; Rich Scipione, Pension Ch* to the Fund; Trinette Gardner, Accountant to the Fund, tauterbach & Amen, Ll-P; and .lames Ritchie, Lauterbach & Amen, LLP. PuHkCmment: No public comrnent. Previons Mlnutes Approval: On a motbn bv Greiner, s€conded by 66mmat the minutes fiom th€ $al L2, zo[N meeting sete approld. AYES: G.ein€r, Tull, Lim, and Grammas iIAYS: ilone ABSE T: Teper Mot'lon carrhd. Pl€.l,em Byron Tu[ rclielid the do6ed meeti.E minut 6 as requirEd semi{nnualv. The minutes rwie*rd w€t€: November 30, 2002 February 4, 2009 December 15, 2O4 Septemb€r 28, 2009 February 9, 20O5 October 15, 2OO9 February 26, 2005 February 8, 2010 April 11, 2006 April 7, 2010 December 7, 2006 S€ptember 7, 2010 1  I{II-ES FIREFIGHTERS' PE'{SIOI{ FUND BOARD OF TRUSIEES MEET| G 8:}5O DEMPSTER N[.ES, lt A)714 Autust 19, 2020 ,anuary 8, 2(IB On a motbn by TulL seconded by Greiner, to k€ep the listed cloed meetirE minutes closed for another sh months, as the need for confidentiality still exists. AYES: GreirEr, Tull, Lim, and Grammas i{AYS: llon€ ABSEiIT: Teper Motion carried- Lauterbadr and fonen, lfC Report Trinette Gardner from Latuerbach & Amen presented the July 31, 2020 Monthly Financial Report. At the end of July 31, 2020, the net position held in trust for pension benefits was S38,649,691.14. The Fund held total assets of 538,655,197.47 and total liabilities of 55,g)6.33. Total additions to the Fund in the last three months was 54,609,266.88 and total deductions of 51,14L,925.22. The Fund paid checks numb€red 3O29G30314 (Harris accountl and 50042 and 50043 (Schwab account) from April 3, 2020 through July 31, 2020, for a total of 5272,@2.26. A motion was made by Tull, seconded by Grammas, to approve the financial report as Presented. Upon a call ofthe roll: AYES: Greiner, Tull, Lim, and Grammas NAYS: None ABSENT: Teper Motion carried. A motaon was made by Tull, seconded by Grammas, to approve the bills and disbursements as presented- Upon a callof the roll: AYES: Greiner, Tull, tim, and Grammas NA\6: None ABSENT: TEPET Motion carried. 2  NII.ES FIREFIGHTERS' PE SION R.,ND BOARD OF TNUSIEES MEEN G 8:T60 DEMPSITR Nlr.ft I e0714 August 19, 20110 The tllinois Department of lnsurance Annual Statement is in draft format, awaiting the Village of Niles audit completion. Lauterbach & Amen is scheduled to file th€ Annual Statement by the October 31 deadline. The affidavits of eli8ibility have all been received and is comPlete. The village of Niles audit is ongoing and on track to be completed in october' Actuarial Study James Ritchie, a member of the actuarial team from Lauterbach & Amen, presented the preliminary actuarial valuation as of May 1, 2020. The actuiirial cost method will continue to be entry ate normal. The current method for funding will be 1096 funded by the year 2037, as opposed to the lllinois statutory minimum contribution of 9096 by the year 2040, using the projected unit cost method. The villa8e of Niles in pension payment will be amortized usinS level percent funding instead of level dollar cost averaging as the past with a five-year smoothed market value. The recommended contribution has increased 5672,220 from prior year due to assumption changes (including improved mortality) and T'ter ll benefit improvements. The recommended contribution is payroll has increased to 81.14% versus last 54,981,958. The recommended contribution as a percent of yea/s valuation of 75.77% at 1.31% net of our current actuarial investment return is 7.m96 versus our current retum on investment administrative expenses. The actuarial value retum on investment is 4'94% net of administrative expens€s. The actuarial liability is 587,445,013. The actuarial value of assets was 42'o5% and the market the statutory minimum value of assets was rlo.23%. The employer normal cost contribution is S1,331,329, is contribution is 53,947,161, and the actuary contribution recommendation Slt'981'958' James reported that the Niles FirefiShters Pension Fund GASB 67/58 Report is not yet available and will be forwarded as soon as it is completed lnvestment Adviso/s RePort: TomsawyerfromSawyerFaldutoP'esentedtheFundsJune3o2o2o.secondQuartertylnvestment Report." The 2O2o second quarterlY ending market value was S35'413'315' with an investment return of 54,355,132 year to date' \'ersus the benchmark of 13'94%' The equity The total account return for the second quarter was 13'48% b€nchmark ol 2l'o,$' The fixed rate of return for the second quarter was 21'48% ve6us the blended The cash equivalent return was o' income rate of retum was 2.16% ve6us the benchmark ol2'7g%' 3  I{II.f S FIREFIGTITERS' PEI{SION FUI'ID BOARD OF TRUSTEES MEEN'{G 8:160 DEMPSIER rr tE lr 60714 August 19, 2020 Our current portfolio allocation as of June 30, 2019: Equities at 63.3%, Fixed lncome at 35.4%, and Cash Equivalent at 1.3%. A motion was made by Tull, s€conded by Grammal to accept the quarterly lnvestment Performance Report, June 30, 2020, as pres€nted. Upon a call of the roll: AYES: Greiner, Tull, Lim, and Grammas NAYS: None ABSENT: Teper Motion carried. Old Business: we have one disabled member who was sent to a phy5ician for his annual IME: Steve zook. we received the comphted report earlier this month. Steve Zook continues to be disabled. Carolyn Clifford is continuing to work on revisions to the Niles pension rules, reBulation, and the updated forms. she has asked to tabb the item until nert meetinB- Brian Coflins disability pension hearing is scheduled for AuSust 3L,2O2O. All trustees have received the information packet required for the disability. Yolanda Hansen disability is tentatively scheduled for September 21,2O2O. Board members expressed concem about the date and requested to move the hearing to September 30. Trinette informed the Board that theY have not received the overpayment check from Carole Wagner' The Board instructed Lauterbach and Amen to send a second letter requesting payment' Consideration of and Action upon Applicants for Admission: Retired member Alex weber passed away ,uh 11, 2020. He has a surviving spouse, Marcia weber who has made application and is entitled to a spousal benefit of54,624-84' on a mot-ton by Tull, seconded by Grammas, to terminate Alex webet's retirement p€nsion and approve Marcia webe/s application for survavint spouse benefit of S4,624.E4 per month' Upon a call of the roll: AYES: Greiner, Tull, Lim, and Grammas NA\6: None ABSENT: Teper 4  IiIIUS FIREFIGHIIRS' PEITISION FUI{O BOARD OFTRUSEES MEET| G 8:160 OEMPSTER Ntr.Es, tt 60714 August 19, 2020 Motion carried New Business: Carolyn reviewed the issue of Mayor Prrybylo appointing a p€nsion board member who was not confirmed by the Villa8e Board of Trustees. Carolyn presented a written memo to Village Aftorney Danielle Grcic on August 6, 2020, reviewing the legal issues regarding the appointment of trustees to firefighter and police pension fund boards. Based on the village of Niles Ordinance 201G69, the Villa8e of Niles did not appmve a new appointed trustee and Marimel Lim will continue to s€rve on the Niles Firefigtters' Pension Fund. The village of t{iles has an interim Treasurer, Ed Mcxee, due to former Village finance director, Jeff Martynowicz resignation on May 27, 2020. The Village of l{iles has hired a new Finance Director, Kent Oliven, who will begin his duties on August 31, 2020. Carolyn prwided an update to the Tier 2 combined creditable service issue. s€nate Bill 3391 was introduced earlier this year that will address th€ 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 training materaal for the Board to review. Training article included 'Pension lnsights Third quarter 2020" and "Ottosen DiNolfo Pension Legal Updates July 2020." The Board designates two hour of training for the material and actuarial review. Next Meeting: The next meetinB is scheduled for November 2, 2020 at 8:3o a.m The meeting was adjourned at 10:30 a.m. on a motion byTull, seconded by Grammas, and approved upon a unanimous voice vote. Respectf ully submitted, 8ob Greiner, secretary Minutes apptoved by the Eoard of Trustees at its meeting on No/ember 2, 2020. Minutes prepored by Rich kiPione, Pension Clerk to tl€ Fund 5