Police Pension Board

Niles Police Pension Fund 7000 W. Touhy Avenue, Niles, Illinois 60714 Vincenzo Genualdi Samuel Fucarino Michael Boba Marimel Lim Jim Grammas President Vice President Secretary Assistant Secretary Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE NILES POLICE PENSION FUND WEDNESDAY, JULY 12, 2017 A regular meeting of the Board of Trustees of the Niles Police Pension Fund was held on Wednesday, July 12, 2017 at 1:00 p.m. at the Niles Police Department located at 7000 Touhy Avenue, Niles, Illinois for the purpose of conducting regular business. CALL TO ORDER: The meeting was called to order by Trustee Genualdi at 1:08 p.m. ROLL CALL: PRESENT: Trustees Vincenzo Genualdi, Michael Boba, Jim Grammas, and Marimel Lim (joined the meeting at 1:19 p.m.) ABSENT: Trustee Samuel Fucarino ALSO PRESENT: Carolyn Clifford, Ottosen Britz; Tom Sawyer, Sawyer Falduto Asset Management; Steve Earnhardt, Michelle Hawkins, and Jessica Fain, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There were no public comments. APPROVAL OF MEETING MINUTES: Regular Meeting Minutes – April 5, 2017: The Board reviewed the minutes from the April 5, 2017 regular meeting. A motion was made by Trustee Boba and seconded by Trustee Genualdi to approve the April 5, 2017 regular meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, and Grammas NAYS: None ABSENT: Trustees Fucarino and Lim Special Meeting Minutes – June 16, 2017: The Board reviewed the minutes from the June 16, 2017 special meeting. A motion was made by Trustee Boba and seconded by Trustee Genualdi to approve the June 16, 2017 special meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, and Grammas NAYS: None ABSENT: Trustees Fucarino and Lim Semi-Month Review of Closed Session Meeting Minutes: This item was tabled for further discussion at the next scheduled meeting. Trustee Lim joined the meeting at 1:19 p.m. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report/Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the two- month period ending June 30, 2017 as prepared by L&A. As of 06/30/17, the net position held in trust for pension benefits is $30,293,572.71 for a change in position of ($233,717.55). The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. The Board also reviewed the Vendor Checks Report for the period 04/01/17 through 06/30/17 for total Niles Police Pension Fund Minutes of Meeting – July 12, 2017 Page 2 of 5 disbursements of $189,807.08. A motion was made by Trustee Boba and seconded by Trustee Genualdi to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Vendor Checks Report in the amount of $189,807.08. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Additional Bills: The Board reviewed the following additional bills for payments: - IPPFA MidAmerican Pension Conference invoice for registration fees in the amount of $1,125.00 for Trustees Genualdi, Boba, & Lim. - County Court Reporters invoice in the amount of $443.40 A motion was made by Trustee Genualdi and seconded by Trustee Grammas to approve payment of the additional bills as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Report: Tom Sawyer presented the Quarterly Investment Performance Report for the period ending June 30, 2017. As of 06/30/2017, the second quarter net return is 2.55% versus the second quarter account benchmark of 2.32%. The investment return for the quarter is $774,374 for an ending market value of $30,296,238. The current asset allocation is as follows: Fixed Income at 43.3%, Equities at 56.7% and Cash Equivalents at 0.1%. Mr. Sawyer reviewed the Market Commentary, Equity and Fixed Income Portfolios, Credit Rating Report and Transaction Ledger Report with the Board. A motion was made by Trustee Genualdi and seconded by Trustee Boba to accept the Quarterly Investment Performance Report as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Review/Update Investment Policy: The Board reviewed the Investment Policy and determined no changes are needed at this time. COMMUNICATIONS OR REPORTS: Affidavits of Continued Eligibility: The Board noted that L&A mailed Affidavits of Continued Eligibility to all pensioners with the June payroll cycle and a due date of July 31st. A status update will be provided at the next scheduled meeting. TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and upcoming training opportunities. Trustees were reminded to submit any certificates of completion to L&A for recordkeeping. Approval of Trustee Training Travel Expense: The Board discussed travel expenses for the 2017 IPPFA MidAmerican Pension Conference in St. Louis. A motion was made by Trustee Genualdi and seconded by Trustee Grammas to purchase airline tickets for Trustees to attend the IPPFA MidAmerican Pension Conference in St. Louis, MO in a total amount not to exceed $1,500. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Niles Police Pension Fund Minutes of Meeting – July 12, 2017 Page 3 of 5 APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM FUND: There were no applications for membership or withdrawals from the Fund at this time. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Review and Approval of Findings and Decision – Joseph S. Paglia: Attorney Clifford reviewed the decision that was made at the disability hearing for Joseph S. Paglia on June 16, 2017, where the Board made an oral motion to grant Mr. Paglia a non-duty disability pension. A written Findings and Decision was presented to the Board for review, approval, and signature. A motion was made by Trustee Genualdi and seconded by Trustee Boba to approve the Findings and Decision, prepared by Ottosen Britz. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, and Lim NAYS: None ABSENT: Trustee Fucarino ABSTAIN: Trustee Grammas Approval of Non-Duty Disability Benefits and Retroactive Pay – Joseph S. Paglia: The Board reviewed the non-duty disability benefit and retro payment calculation for Joseph S. Paglia. A motion was made by Trustee Genualdi and seconded by Trustee Lim to approve the non-duty disability benefits and retro payment calculation for Joseph S. Paglia as prepared by L& A with the following information: entry date of 11/30/02, disability date of 03/27/17, effective date of pension of 03/28/17, 48 years of age at the time of disability, 14 years of creditable service. The originally granted annual pension benefit will be $50,174.88 for an originally granted monthly benefit of $4,181.24, which is 50% of his final pensionable salary of $100,349.76. The retro payment due to Mr. Paglia is $13,083.23 from 03/28/17 through 06/30/17. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, and Lim NAYS: None ABSENT: Trustee Fucarino ABSTAIN: Trustee Grammas Approval of Regular Retirement Benefits – John M. Huinker: The Board reviewed the regular retirement benefit calculation for John M. Huinker prepared by L&A. Mr. Huinker had an entry date of 03/31/89, retirement date of 05/12/17, effective date of pension of 05/13/17, 50 years of age at date of retirement, 28 years of creditable service, applicable salary of $126,115.83, applicable pension percentage of 70.00%, and amount of originally granted annual pension of $88,281.12 for an originally granted monthly benefit of $7,356.76. Approval of Regular Retirement Benefits – Dennis J. McEnerney: The Board reviewed the regular retirement benefit calculation for Dennis J. McEnerney prepared by L&A. Mr. McEnerney had an entry date of 12/04/78, retirement date of 06/30/17, effective date of pension of 07/01/17, 61 years of age at date of retirement, 38 years of creditable service, applicable salary of $149,267.46, applicable pension percentage of 75.00%, and amount of originally granted annual pension of $111,950.64 for an originally granted monthly benefit of $9,329.22. A motion was made by Trustee Genualdi and seconded by Trustee Boba to approve John M. Huinker and Dennis J. McEnerney’s regular retirement benefits as calculated by L&A. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Deceased Pensioner – Judith E. Hanna: The Board noted that pensioner Judith E. Hanna passed away March 24, 2017, and her surviving spouse pension benefits have ceased. Niles Police Pension Fund Minutes of Meeting – July 12, 2017 Page 4 of 5 OLD BUSINESS: Status of Agreement with Lauterbach & Amen for PSA/Portal Services: The Board noted that the engagement letter with Lauterbach & Amen for PSA and Portal Services is currently being revised. An update will be provided at the next scheduled meeting. Status of QILDRO – Thomas Davis: Trustee Genualdi informed the Board that no response has been received to date from Mr. Davis or his legal counsel regarding his QILDRO. An update will be provided at the next regular meeting. NEW BUSINESS: Review and Approval of Attorney Retainer and Engagement Letter: Attorney Clifford reviewed the Ottosen Britz Attorney Retainer and Engagement Letter with the Board and noted that the hourly attorney rate increased from $210 to $225. A motion was made by Trustee Genualdi and seconded by Trustee Boba to approve the engagement and retainer with Ottosen Britz for legal services through December 31, 2018. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Review Preliminary Actuarial Valuation: Jessica Fain presented the preliminary Actuarial Valuation prepared by L&A. The recommended Village contribution is $3,963,779, which is an increase of $289,675 over last year. While the return on the market value of investments for the previous fiscal year ending April 20th was 9.8% net of administrative expenses, the five-year smoothed actuarial value of assets return was 4.3%, net of administrative expenses. The statutory minimum contribution is $3,128,581. The final report will be issue after the audit is completed, and will be reviewed by the Board at the next regularly scheduled meeting to make the final tax levy request to the Village Board. Appointed Trustee – James Grammas: The Board noted that James Grammas was appointed by the Village Mayor to the Niles Police Pension Fund Board of Trustees for a one-year term, replacing Jim Callero who has stepped down from the position. The Board welcomed James to the Board. Board Officer Elections – President, Vice President, Secretary, & Assistant Secretary: The Board discussed Board Officer Elections and nominated the following slate of Officers: Vincenzo Genualdi as President; Samuel Fucarino as Vice President; Michael Boba as Secretary; and Marimel Lim as Assistant Secretary. A motion was made by Trustee Genualdi and seconded by Trustee Grammas to elect the slate of Officers as stated. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino FOIA Officer & OMA Designee: The Board noted that Trustees Genualdi and Boba are the FOIA Officers and OMA Designees for the Niles Police Pension Fund Board of Trustees. ATTORNEY’S REPORT: Legal Updates: Attorney Clifford discussed with the Board a memorandum regarding the Code of Conduct for Fund Service Providers. Ms. Clifford also discussed the third quarter Ottosen Britz Pension Practice Quarterly Insights and highlighted items pertaining to the Tax Levy letter, and also discussed the presentations she has given at recent conferences. CLOSED SESSION: There was no closed session needed. Niles Police Pension Fund Minutes of Meeting – July 12, 2017 Page 5 of 5 ADJOURNMENT: A motion was made by Trustee Genualdi and seconded by Trustee Boba to adjourn the meeting at 2:59 p.m. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino The next regular meeting is scheduled for October 11, 2017 at 1:00 p.m. _______________________________________________ Michael Boba, Board Secretary Minutes prepared by Michelle Hawkins, Pension Services Administrator Minutes approved by the Board at its October 11, 2017, meeting.