Police Pension Board

Niles Police Pension Fund 7000 W. Touhy Avenue, Niles, Illinois 60714 Michael Boba Samuel Fucarino Danielle Helma Marimel Lim James Grammas President Vice President Secretary Asst. Secretary Trustee MINUTES OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE NILES POLICE PENSION FUND OCTOBER 10, 2018 A regular meeting of the Board of Trustees of the Niles Police Pension Fund was held on Wednesday, October 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 Boba at 1:00 p.m. ROLL CALL: PRESENT: Trustees Michael Boba, Jim Grammas, Danielle Helma, and Marimel Lim ABSENT: Trustee Samuel Fucarino ALSO PRESENT: Attorney Carolyn Clifford, Ottosen Britz; Tom Sawyer, Sawyer Falduto Asset Management; Michelle Hawkins, Liz Failing and Trinette Gardner, Lauterbach & Amen, LLP (L&A) PUBLIC COMMENT: There were no public comments. APPROVAL OF MEETING MINUTES: July 11, 2018 Regular Meeting and August 28, 2018 Special Meeting: The Board reviewed the minutes from the July 11, 2018 regular meeting and August 28, 2018 special meeting. A motion was made by Trustee Boba and seconded by Trustee Helma to approve the July 11, 2018 regular meeting and August 28, 2018 special meeting minutes as written. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino ACCOUNTANT’S REPORT – LAUTERBACH & AMEN, LLP: Monthly Financial Report and Presentation and Approval of Bills: The Board reviewed the Monthly Financial Report for the five-month period ending September 30, 2018 as prepared by L&A. As of 09/30/2018, the net position held in trust for pension benefits is $33,368,029.31 for a change in position of $870,420.32. The Board reviewed the Cash Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll Journal. The Board also reviewed the Vendor Check Report for the period 07/01/2018 through 09/30/2018 for total disbursements of $178,640.74. A motion was made by Trustee Boba and seconded by Trustee Lim to accept the Monthly Financial Report as presented and to approve the disbursements shown on the Vendor Check Report in the amount of $178,640.74. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Additional Bills, if any: The Board discussed the expenses incurred from the 2018 IPPFA MidAmerican Pension Conference. A motion was made by Trustee Boba and seconded by Trustee Helma to approve reimbursements to Trustees for expenses incurred from the 2018 MidAmerican Pension Conference. Motion carried by roll call vote. Niles Police Pension Fund Minutes of Meeting – October 10, 2018 Page 2 of 4 AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino INVESTMENT REPORT – SAWYER FALDUTO ASSET MANAGEMENT: Quarterly Investment Performance Report: Tom Sawyer presented the Quarterly Investment Performance Report for the period ending September 30, 2018. As of 09/30/2018, the net return for the quarter is 2.37% versus the third quarter account benchmark of 3.17%. Sawyer Falduto noted the unusual concentration of large cap index return from only three stocks, which accounted for over half the S&P 500 return in this window of time, as well as explained the comparative underperformance of equity holdings in the Fund’s portfolio, which are not that concentrated. The investment return for the quarter is $791,252 for an ending market value of $33,356,503. The current asset allocation is as follows: Fixed Income at 43.3%, Equities at 56.4% and Cash Equivalents at 0.4%. 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 Boba and seconded by Trustee Helma to accept the Quarterly Investment Performance Report as presented. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Review/Update Investment Policy: The Board discussed adjusting the asset allocation target to reflect the following: 62.5% Equity target with a range of 55-65%, 37.5% Fixed Income target with a range of 35- 45%, and Cash with a range of 0-5%. A motion was made by Trustee Helma and seconded by Trustee Grammas to adjust the asset allocation target based on the recommendation of Sawyer Falduto. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino COMMUNICATIONS OR REPORTS: Affidavits of Continued Eligibility: The Board noted that all 2018 Affidavits of Continued Eligibility have been received and the originals were presented to the Board for its records. 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. APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS: Approve Regular Retirement Benefits – Alec Laule: The Board reviewed the regular retirement benefit calculation for Alec Laule prepared by L&A. Officer Laule had an entry date of 09/08/1992, retirement date of 09/13/2018, effective date of pension of 09/14/2018, 52 years of age at date of retirement, 26 years of creditable service, applicable salary of $106,807.60, applicable pension percentage of 65%, amount of originally granted monthly pension of $5,785.41, and amount of originally granted annual pension of $69,424.92. Approve Regular Retirement Benefits – Kenneth Sall: The Board reviewed the regular retirement benefit calculation for Kenneth Sall prepared by L&A. Commander Sall had an entry date of 09/30/1985, retirement date of 09/30/2018, effective date of pension of 10/01/2018, 54 years of age at date of retirement, 33 years of creditable service, applicable salary of $129,787, applicable pension percentage of 75%, amount of Niles Police Pension Fund Minutes of Meeting – October 10, 2018 Page 3 of 4 originally granted monthly pension of $8,111.69, and amount of originally granted annual pension of $97,340.28. A motion was made by Trustee Helma and seconded by Trustee Boba to approve Alec Laule and Kenneth Sall’s regular retirement benefits as calculated by L&A. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Approve Deferred Pension Benefit – Vincenzo Genualdi: The Board reviewed the regular retirement benefit calculation for Vincenzo Genualdi prepared by L&A. Deputy Chief Genualdi had an entry date of 05/09/1994, retirement date of 06/29/2018, effective date of pension of 08/18/2022, 50 years of age at date of retirement, 24 years of creditable service, applicable salary of $139,362.39, applicable pension percentage of 60%, amount of originally granted monthly pension of $6,968.12, and amount of originally granted annual pension of $83,617.44. A motion was made by Trustee Boba and seconded by Trustee Grammas to approve Vincenzo Genualdi’s regular retirement benefit as calculated by L&A. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Deceased Pensioner – Robert Grudzien: The Board noted that pensioner Robert Grudzien passed away September 15, 2018 with no surviving spouse. A motion was made by Trustee Boba and seconded by Trustee Helma to terminate the pension benefits for Robert Grudzien. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino OLD BUSINESS: Review of Possible Refund for Overpaid Fees – Securities America: Attorney Clifford informed the Board that no response has been received to date from Securities America. Updates will be provided to the Board as they become available. Approval of IDOI Annual Statement: L&A informed the Board that the draft IDOI Annual Statement was sent to the Board for review. A motion was made by Trustee Helma and seconded by Trustee Lim to approve the IDOI Annual Statement as presented. Motion carried by roll call vote. AYES: Trustees Boba, Helma, Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino Status of Village Audit: The Board noted that the Village audit is in process and the final report will be sent to L&A upon completion for filing with the Illinois Department of Insurance. Update from Meeting with Village Finance Committee and Determination on Investment Return Assumption: The Board discussed the investment rate of return assumption to be used in the Actuarial Valuation. Further discussion will be held after the Village of Niles Board of Trustees meeting on October 17th. NEW BUSINESS: Review/Approve – Actuarial Valuation and Tax Levy Request: The Board tabled this item for discussion until the next scheduled meeting. Niles Police Pension Fund Minutes of Meeting - October 10, 2018 Page 4 of 4 Review/Adopt - Municipal Compliance Report: The Board tabled this item for discussion until the next scheduled meeting. 2019 Board Meeting Dates: The Board discussed establishing the 2019 Board meeting dates as January 9, April 10, July 10, and October 9 at l:00 p.m. located at the Niles Police Department, 7000 W. Touhy Avenue, Niles, Illinois. A motion was made by Trustee Boba and seconded by Trustee Helma to establish the 2019 Board meeting dates as stated. Motion caried by roll call vote. AYES: Trustees Boba, Helma,Lim, and Grammas NAYS: None ABSENT: Trustee Fucarino ATTORNEY'S REPORT: Legal Updates: Attorney Clifford discussed the fourth quarter Ottosen Britz Client Alert and highlighted items pertaining to training. CLOSED SESSION,IF NEEDED: There was no closed session needed. ADJOURNMENT: A motion was made by Trustee Helma and seconded by Trustee Boba to adjoum the meeting at 7:59 p.m. Motion carried unanimously by voice vote. The next regular meeting is scheduled for January 9,2019 at 1:00 p.m. Date A by Board Minutes prepared by Michelle Hawbins, Pension Services Administrator, Lauterbach & Amen, LLP Page 5 of 100