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, JANUARY 10, 2018 A regular meeting of the Board of Trustees of the Niles Police Pension Fund was held on Wednesday, January 10, 2018 at 1:00 p.m. at the Niles Police Department located at 7000 W. Touhy Avenue, Niles, Illinois for the purpose of conducting regular business. CALL TO ORDER: The meeting was called to order by Trustee Genualdi at 1:03 p.m. ROLL CALL: PRESENT: Trustees Vincenzo Genualdi, Michael Boba, Jim Grammas, and Marimel Lim ABSENT: Trustee Samuel Fucarino ALSO PRESENT: Carolyn Clifford and Megan Trela, Ottosen Britz; John Falduto and Tom Sawyer, Sawyer Falduto Asset Management; Trinette Gardner and Michelle Hawkins, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There were no public comments. APPROVAL OF MEETING MINUTES: October 10, 2017 Regular Meeting Minutes: The Board reviewed the minutes from the October 10, 2017 regular meeting. A motion was made by Trustee Genualdi and seconded by Trustee Boba to approve the October 10, 2017 regular meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Semi-Annual Review of Closed Session Meeting Minutes: The Board discussed the closed session minutes and will not release them at this time. ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report: The Board reviewed the Monthly Financial Report for the eight-month period ending December 31, 2017 as prepared by L&A. As of 12/31/17, the net position held in trust for pension benefits is $32,248,271.34 for a change in position of $1,720,981.08. The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. Presentation and Approval of Bills: The Board reviewed the Vendor Checks Report for the period 10/01/17 through 12/31/17 for total disbursements of $189,569.21. A motion was made by Trustee Genualdi and seconded by Trustee Grammas to approve the disbursements shown on the Vendor Checks Report in the amount of $189,569.21. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Additional Bills: There were no additional bills presented at this time. Niles Police Pension Fund Minutes of Meeting – January 10, 2018 Page 2 of 3 INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Performance Report: Tom Sawyer and John Falduto presented the Quarterly Investment Performance Report for the period ending December 31, 2017. As of 12/31/2017, the fourth quarter net return is 3.21% versus the fourth quarter account benchmark of 3.16%. The investment return for the quarter is $1,026,660 for an ending market value of $32,238,470. The current asset allocation is as follows: Fixed Income at 42.1%, Equities at 56.7% and Cash Equivalents at 1.2%. 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 were needed. COMMUNICATIONS OR REPORTS: 2018 Mileage Rate: The Board noted that the IRS standard business mileage rate used for reimbursement increased to $0.545 per mile effective January 1, 2018. Statements of Economic Interest – Submission of Required Filers to County: The Board noted that the List of Filers must be submitted to the County by the Village by February 1, 2018. Statements of Economic Interest will be sent to all registered filers who will need to respond by the deadline of May 1, 2018. 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. 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: Status of Disability Application – Eric Lambrechts: Attorney Clifford informed the Board that medical records for Eric Lambrechts from Dr. Dixon have not been received. Attorney Clifford will schedule the independent medical examinations without the records from Dr. Dixon, as he was a second opinion. A status update will be provided at the next scheduled meeting. Deceased Surviving Spouse – Joanne Emrikson: The Board noted that Joanne Emrikson passed away November 24, 2017, and her surviving spouse pension benefits have ceased. OLD BUSINESS: Discussion/Possible Action – Lauterbach & Amen Engagement Letter for PSA/Portal Services: This item was tabled for discussion until the next scheduled meeting. Status of QILDRO – Thomas Davis: The Board reviewed the revised QILDRO for Thomas Davis and Paula Davis. A motion was made by Trustee Genualdi and seconded by Trustee Lim to accept the revised QILDRO Calculation Order as presented. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Confirmation of Tax Levy Amount for Fund – Review of Village’s Tax Levy Ordinance: The Board reviewed the 2017 Department of Insurance Actuarial Valuation and discussed the assumptions used. The calculation Niles Police Pension Fund Minutes of Meeting – January 10, 2018 Page 3 of 3 was prepared by the DOI’s new actuary, GRS, and the interest rate assumption has been lowered to 6.25%. According to this DOI actuarial valuation, the statutory minimum Village contribution is $4,168,183. NEW BUSINESS: Approve Annual Cost of Living Adjustments (COLAs) for Pensioners: The Board reviewed the 2018 Cost of Living Adjustments as calculated by L&A. A motion was made by Trustee Genualdi and seconded by Trustee Boba to approve the 2018 Cost of Living Adjustments as required by statute and calculated by L&A. Motion carried by roll call vote. AYES: Trustees Genualdi, Boba, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Review Trustee Term Expirations and Election Procedures: The Board noted that the active member terms currently held by Trustees Genualdi and Boba are expiring in April 2018. Trustees Genualdi and Boba expressed their wishes to remain on the Board if nominated. L&A will conduct an election on behalf of the Pension Fund for the two active member Trustee positions. The Board also noted that the appointed Trustee positions held by Trustees Lim and Grammas are expiring in 2018, and they wish to remain on the Board. The Board will contact the Village and seek reappointment of Trustees Lim and Grammas to the Board. Annual Servicers Certifications from Illinois Finance Entities: Attorney Clifford informed the Board that no assets are currently held in any Illinois Finance Entities, which was confirmed by Sawyer Falduto. Therefore, no certificates need to be filed with the Illinois Department of Insurance at this time. ATTORNEY’S REPORT: Legal Updates: Attorney Clifford discussed the first quarter Ottosen Britz Pension Practice Quarterly Insights and highlighted items pertaining to Actuarial Assumptions and Methodology. CLOSED SESSION, IF NEEDED: There was no closed session needed. ADJOURNMENT: A motion was made by Trustee Genualdi and seconded by Trustee Boba to adjourn the meeting at 2:07 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 April 11, 2018 at 1:00 p.m. _________________________ ______________________________________ Michael Boba, Board Secretary Date Approved by Board Minutes prepared by Michelle Hawkins, Pension Services Administrator