Firemen’s Pension Fund Board of Trustees

February 28, 2022 Peoria, Illinois PROCEEDINGS OF A REGULAR MEETING OF THE BOARD OF TRUSTEES OF THE FIREMEN'S PENSION FUND OF PEORIA, ILLINOIS A Regular Meeting of the Board of Trustees of the Firemen's Pension Fund of Peoria, Illinois, will be held this date at City Hall, Room 404, Peoria, Illinois at 9:38 A.M. with proper notice having been given, for the purpose of conducting regular Firemen's Pension Fund business. ROLL CALL Roll Call showed the following Board members present: Higgins (electronically}, Smith, Tarr, Tomblin, President Troglio - 5. Others present: Mr. Patrick Donnelly, Institutional Consulting Director, Financial Advisor with Graystone Consulting in Peoria; City Treasurer Stephen Morris; and Chief Deputy City Clerk Trina Bonds. INVOCATION A moment of silence was held in remembrance of those Firefighters who have served our community. MINUTES Recommendation to Approve the Minutes of the Regular Board Meeting held on January 24, 2022, as printed. Trustee Smith moved to approve the minutes of the Regular Board Meeting held on January 24, 2022; seconded by Trustee Tomblin. Approved by viva voce vote. REGULAR BUSINESS ITEM NO. 1 MONTHLY PORTFOLIO PERFORMANCE REVIEW by PATRICK DONNELLY GRAYSTONE CONSULTING (A business of Morgan/Stanley Smith-Barney), and Discussion Regarding Recommendations, Possible Action Regarding the Firemen's Pension Fund Portfolio Performance, and Discussion and Review of the Asset Allocations, with Request to Receive and File Reports or Take Other Action. A copy of the Account Balance Update for the period ending February 24, 2022, was distributed to all members of the Board. The Morgan Stanley Account Balance Update showed the portfolio valued at $1,078.56, as of 2/23/22. He reported there were some dividends and interest payments deposited to the account, which could be transferred as soon as requested. He commented there might be more in the upcoming months and he said they would be sure to move those funds into a cash account. PROCEEDINGS - FIREMEN'S PENSION MEETING FEBRUARY 28, 2022 PAGE2 President Troglio remarked on Fire Departments downstate who had transferred their funds to FPIF who had issues with not being able to access cash. He commented about the Board having six-months' worth of cash in reserves and he said it was a good thing. Mr. Donnelly commented on the process noting it was very cumbersome. He briefly described the requirements and said it would be more than a 30-day process once FPIF received the request to transfer funds. He confirmed having cash on hand was a good thing. After brief comments, Trustee Smith moved to receive and file the Morgan Stanley Account Balance Update for the period ending February 23, 2022; seconded by President Troglio. Approved by viva voce vote. Mr. Donnelly left the meeting at 9:45 a.m. ITEM NO. 2 Report from Fire Marshal James Bachman of Pension Fund Contributions, which were made by payroll deductions during the MONTH of JANUARY 2022, from the active members of the Peoria Fire Department and which checks were turned in to the City Treasurer's Office by Director of Finance/Comptroller, with Recommendation to Concur and Receive and File. Payroll Period When Deducted Amount December 21, 2021 - January 8, 2022 January 14, 2022 $63,038.75 January 9, 2022 - January 22, 2022 January 31, 2022 $63,544.38 TOTAL $126,583.13 Trustee Tomblin moved to concur and place on file the Fire Marshal's Report for January 2022; seconded by Trustee Smith. Approved by viva voce vote. ITEM NO. 3 Request to APPROVE the following BILLS: Pensions for February 2022 (dated February 28, 2022) ......................... $1,478,494.66 Lauterbach & Amen, LLP- Prof Svcs Dec 2021 ....................................... 3,445.00 SUB-TOTAL FOR FEBRUARY...................................................... $1,481,939.66 GRAND TOTAL FOR FEBRUARY................................................... $1,481,939.66 Trustee Tarr moved to approve the bills for February 2022, in the amount of $1,481,939.66; seconded by Trustee Smith. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None. PROCEEDINGS - FIREMEN'S PENSION MEETING FEBRUARY 28, 2022 PAGE3 ITEM NO. 4 APPLICATION for REGULAR RETIREMENT PENSION for FIRE CAPTAIN MICHAEL TODD LIERLE to become effective March 1, 2022 (last day paid by the City, February 28, 2022) based on 70.4167% of his Annual Salary of $110,954.88. (which includes longevity and advanced firefighter pay). Pension to be paid in the Amount of $6,510.90 for March 2022 and every month thereafter with recommendation for the Board to APPROVE. Trustee Tomblin moved to approve the Application for Regular Retirement Pension for Fire Captain Michael Todd Lierle to become effective March 1, 2022, (last day paid by the City February 28, 2022) based on 70.4167% of his annual salary of $110,954.88 (which includes longevity and advanced firefighter pay) with pension to be paid in the amount of $6,510.90 for every month thereafter; seconded by President Troglio. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None. ITEM NO. 5 REQUEST to APPROVE the REMOVAL from the PENSION ROLLS of DENISE ROXANNE KNEER Due to Her Death on JANUARY 19, 2022, and to Make Payments to the Denise Roxanne Kneer Estate, in the Amount of $3,660.92, for 19 Days of January 2022. Recommendation: To RECEIVE and FILE the Death Certificate and to APPROVE the Payment of $3,660.92 for 19 days of January. Trustee Tarr pointed out the City Clerk's Office was not notified of the death of Denise Kneer until the end of January, and by that time, the funds had already been paid for the entire month. She said Lauterbach and Amen had unsuccessfully tried to reverse the funds. She reported a letter was sent out to the daughter and she was made aware of this overpayment, but she said since then, all contact had been lost. President Troglio suggested keeping the overpayment on the agenda for the Regular Scheduled March 28, 2022 Fire Pension Board Meeting to follow-up. President Troglio moved to approve the removal from the pension rolls of Denise Roxanne Kneer due to her death on January 19, 2022, and to make payment to the Denise Roxanne Kneer Estate, in the amount of $3,660.92 for 19 days of January 2022, and to receive and file the Death Certificate; seconded by Trustee Tomblin. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None. ITEM NO. 6 MONTHLY FINANCIAL REPORT from LAUTERBACH & AMEN, LLP for the Month of JANUARY 2022, which Includes the STATEMENT OF PLAN NET ASSETS, STATEMENT OF CHANGES IN PLAN NET ASSETS, SUMMARY of CASH AND INVESTMENTS, BALANCE SHEET, REVENUES and REVENUE REPORT, EXPENSES and EXPENSE REPORT, PAYROLL JOURNAL, and VENDOR CHECKS REPORT, with Recommendation to APPROVE. PROCEEDINGS - FIREMEN'S PENSION MEETING FEBRUARY 28, 2022 PAGE4 After brief comments, Trustee Tarr moved to defer this item to the March 28, 2022 Regular Fire Pension Meeting; seconded by President Troglio. Motion to defer to the March 28, 2022, regular Firemen's Pension Board Meeting was approved by roll call vote. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None. ITEM NO. 7 REQUEST for APPROVAL of a RESOLUTION Authorizing City Treasurer Stephen Morris the POWER TO INVEST, and Authorize City Treasurer Morris to Maintain a Minimum of $10,000.00 in the HARRIS BANK ACCOUNT. Trustee Smith moved to approve a Resolution authorizing City Treasurer Stephen Morris the power to invest and authorize City Treasurer Morris to maintain a minimum of $10,000.00 in the Harris Bank Account; seconded by President Troglio. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None. ITEM NO. 8 DISCUSSION with JASON FRANKEN of FOSTER AND FOSTER Regarding Alternate FIRE PENSION FUNDING with request to RECEIVE and FILE or to Take Appropriate Action. Jason Franken of Foster and Foster attended the meeting electronically at 10:00 a.m. He gave a brief summary of what he felt was the best approach to Fund pensions going forward. He said the objective was to help educate individuals and City Council Members regarding the funding of the Fire Pension Plan and what it would look like if there was a change to the legislation that deferred funding from 2040 to 2050. He said another option would be to help demonstrate what the contribution might look like and the overall long-term obligation of the City under a better funding approach similar to IMRF. He mentioned a 15-year rolling amortization. He said the lower the funding ratio target was and the longer the funding target could be reached, the more the City was going to have to pay over the long-term. He explained in addition to the annual valuation they provided, he said they had a pension modular separate from the valuation. He commented this would be a dynamic tool and he said it would change instantaneously. He said after the development of this tool, he recommended meeting Council Members in small groups. Trustee Smith said the tool was very intriguing and he asked if the Board would have access remotely. In response, Mr. Franken confirmed they would have access and he reported the tool would be an Excel based tool, which could be provided to the Board and other City Staff. In response to a question from President Troglio, Mr. Franken briefly described how IMRF started their rolling amortizations. During comments, he said the Board needed to have a contribution policy to reduce their unfunded liability. Discussion was held in regard to the different options for the proposed dynamic tool. Mr. Franken confirmed as long as there was a standard approach, he said the Board did not have to PROCEEDINGS - FIREMEN'S PENSION MEETING FEBRUARY 28, 2022 PAGES come up with how it would look. President Troglio suggested using last year's valuations as a starting point to make the tool functionable. During more comments and discussion, Mr. Franken said the timeframe to develop the dynamic tool would be approximately 4 to 5 weeks. The Board discussed the later part of April or the early part of May as possible roll out dates. In regard to the fee, Mr. Franken reported the contract and scope of work would cost $7,000, which would also include the day of meetings with individuals or groups. In more discussion, City Treasurer Morris and the Board agreed it would be much more valuable to have face-to- face meetings with City Council Members. Trustee Smith moved to direct Jason Franken of Foster & Foster to do a Study of the Parameters set by the Board regarding a Rolling Amortization not to exceed $7,000; seconded by President Troglio. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None UNFINISHED BUSINESS ITEM NO. 9 CONTINUED DISCUSSION Regarding a Letter from the FIREFIGHTERS' PENSION INVESTMENT FUND (FPIF) Regarding their CASH MANAGEMENT POLICY, with Request to RECEIVE and FILE or to Take Appropriate Action. Trustee Tarr reported Lauterbach and Amen already does a report which might satisfy the requirements of the Cash Management Policy. After brief comments, Trustee Tarr moved to approve the request to receive and file the continued discussion regarding a letter from the Firefighters' Pension Investment Fund (FPIF) regarding their Cash Management Policy; seconded by Trustee Tomblin. Approved by viva voce vote. NEW BUSINESS JOHN SCHNIBBEN UPDATE Trustee Tarr reported Attorney Reimer's Office was having a hard time establishing a date for a disability hearing from Captain Schnibben's attorney. She said she would notify the Board as soon as she received a final date. CONTINUING EDUCATION HOURS There was a brief discussion regarding the required number of education hours. President Troglio said he would reach out to Attorney Reimer's Office for additional information on education hours. A majority of the Board decided they wanted to attend the 2022 IPPFA Illinois Pension Conference, to be Held April 27-29, 2022 in East Peoria, Illinois. PROCEEDINGS - FIREMEN'S PENSION MEETING FEBRUARY 28, 2022 PAGE& CITIZENS' OPPORTUNITY TO ADDRESS THE BOARD OF TRUSTEES It was determined that there were no citizens to address the Board of Trustees. EXECUTIVE SESSION ITEM NO. 10 REQUEST FOR A MOTION TO GO INTO EXECUTIVE SESSION TO DISCUSS 2(C)(21) FOR A DISCUSSION OF MINUTES OF MEETINGS LAWFULLY CLOSED UNDER THIS ACT HELD WHETHER FOR PURPOSES OF APPROVAL BY THE BODY OF THE MINUTES OR SEMI-ANNUAL REVIEW OF THE MINUTES AS MANDATED BY SECTION 2.06 AND ANY OTHER EXCEPTIONS. Trustee Tomblin moved to go into Executive Session pursuant to 2(c)(21) to discuss the minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body of the minutes or semi-annual review of the minutes as mandated by Section 2.06; seconded by Trustee Smith. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio -5; Nays: None. The Board went into Executive Session at 10:36 A.M. in Room 404 at City Hall. RECONVENING OF THE BOARD OF TRUSTEES The Board Meeting reconvened at 10:43 A.M. Roll Call showed the following Board Members present: Higgins, Smith, Tarr, Tomblin, President Troglio -5. Absent: None. Others present: City Treasurer Stephen Morris; Chief Deputy City Clerk Trina Bonds. ADJOURNMENT Trustee Smith moved to adjourn the Regular Firemen's Pension Board Meeting; seconded by President Troglio. Approved by roll call vote. Yeas: Higgins, Smith, Tarr, Tomblin, President Troglio - 5; Nays: None. The Regular Firemen's Pension Board meeting adjourned at 10:45 A.M. Stefani T rr, RMC, CMC, City Clerk Trustee nd Board Secretary, Firemen's Pension Fund of Peoria, Illinois /tb