Firemen's Pension Fund Board of Trustees Meeting

URBANA FIRE PENSION BOARD OF TRUSTEES MEETING FRIDAY, APRIL 27, 2018 The Fire Pension board of Trustees of the City of Urbana, Illinois met at 9:30am, Friday, April 27, in the second floor Executive Conference Room of the U rbana City Building. MEMBERS PRESENT: Andrew Rickards, President- end of term 4 / 26 / 2018 Josh Ingold, Firefighter/ Secretary - end of term 7/ 28 / 2020 Brian Hoff, Firefighter - end of term 7/ 28 / 2020 Elizabeth Hannan, Finance Director - end of term 6/ 30/ 2020 MEMBERS ABSENT: Richard Schnuer, City Appointment - end of term 6/ 30/ 2019 OTHERS PRESENT: James Dobrovolny, Fund Attorney; Ronald E ldridge, Fund Assistant Treasurer; Carla Tucker, Fund Accountant; Kevan Melchiorre, Busey Bank Investments: Todd Schroeder, Fund Actuary, Lauterbach & Amen 1. Call to Order President Andrew Rickards called the meeting to order at 9:30am. 2. Investment Business Kevan Melchiorre of First Busey Trust & Investment Co. was present. He distributed the quarterly report and reviewed the pension fund's investment activity through the quarter ended March 31, 2018. The ending value for the portfolio as of that date was $32,004,945, showing a gain of $48,420 from the previous quarter. After discussion, FF Brian Hoff made a motion to receive and file the investment report. Motion seconded by FF / Sec Josh Ingold and carried by voice vote The fee Busey charges the Urbana Fire Pension Fund is .003 per each dollar invested. 3. Pension Funding Discussion Finance Director Elizabeth Hannan introduced the funding discussion, and told trustees she and Fund Actuary Todd Schroeder had worked on a plan to work toward full funding of the fire pension fund over a period of about 19 years. She said when the plan was presented to the mayor, she agreed to present it to City Council and recommend they adopt it as the city's funding policy. Ms. Hannan recommended that trustees vote to adopt the funding plan, and said that board approval would be a positive note to city council when it is presented to them. Mr. Schroeder went over the funding plan, stating that this is an option that will help the fund move forward to a standard long term recommendation. After discussion FF / Sec Ingold made a motion as tallows, "We accept the proposed plan as presented by Elizabeth Hannan. We acknowledge to the Mayor and City Council that is is a huge financial step forward for us, one which we appreciate, and acknowledge also that we realize that this is a difficult step for the City in their current financial situation. We appreciate their commitment." Motion was seconded by Ms. Hannan and carried by voice vote. 4. Approval of Minutes from Previous Meeting Minutes from the February 2, 2018 meeting showed FF Brian Hoff as present. FF Hoff was absent at that meeting. A motion to accept the minutes from the February 2, ·2018 meeting, with a correction to the attendance list, was made by FF / Sec Ingold, seconded by Ms. Hannan, and carri'ed by voice vote. Urbana Firemen's Pension Board of Trustees Minutes: April 27, 2018 Page 2 of3 5. Approval of Financial Report Mr. Eldridge went over the financial report for the quarter ended March 31, 2018. He said in January, all pensioners aged 55 and older who had been retired one full year received a 3% pension increase. Exceptions were Jeff Ballew, Joel Neal, Dennis Phillips, Andrew Rickards and Keith Schafroth, who have all been retired less than 12 months, and Amy Richardson and Rodney Eichorn, who are not yet 55 years old .. Disability pensioners, aged 60 or older, received an increase of 3% of their original pension, with the exception of Dwayne Bishop, who is not yet 60 years old. Dependent pensions received no increases. Rose Breen passed away in February so her dependent pension dropped off. Joel Neal retired in March of 2017, and he will received a 3% increase in April of 2018. After discussion, Ms. Hannan motioned to accept and file the quarterly financial report. Motion seconded by FF / Sec Ingold and carried by voice vote. 6. Public Input There was none. 7. Unfinished Business A. Pension Physicals FF /Sec Ingold is still working on this and said he had nothing to present. Item will be discussed at the next meeting. B. Board member training Mr. Dobrovolny informed the board that the 12 month period for completing training begins in August and the annual requirement is 16 hours. The training can be completed by attending conferences or by taking training online. 8. NEW BUSINESS A. Pension Benefit Changes Mr. Dobrovolny discussed current legislation. House Bill 4413, which has passed in the house and is now in senate, states that any open meeting of a retirement system or pension fund, or any committee established by a retirement system, must be broadcast to the public and must be maintained in real time on the pension fund's website. It is not in the open meetings act, but it is under Article 1 of the Pension Code. It could be an additional expense to the pension fund. Mr. Eldridge suggested contacting the State to object to this bill. Obtaining bids for financial services was discussed. It is supposed to be done every five years. The bids are to be obtained through a Request for Proposals (RFP). Ms. Hannan said she could send some examples of RFP's from other municipalities to Mr. Eldridge and the trustees and bring information to the next meeting. B. Economic interest statements Mr. Dobrovolny said economic interest statements must be submitted by members of the pension board. Confirmation of this should be done at a regular meeting of the board. C. New hire Chris Brown FF /Sec Ingold presented the medical information from new hire Chris Brown's employment physical. He said there is nothing unusual in the results. FF / Sec Ingold made a motion to Urbana Firemen's Pension Board of Trustees Minutes: April 27, 2018 Page 3 of 3 accept Chris Brown into the pension fund as a Tier 2 firefighter, effective on his date of hire. Motion seconded by FF Hoff and carried by voice vote. D. New hire Michael Clark FF /Sec Ingold said he had not received the medical information for new hire Michael Clark. This item will carry over to the next meeting. E. Review of Department of Insurance audit Mr. Eldridge said the results he received from State Audit are from 2014 and that the pension board has already implemented the changes in January or April 2015. The report is a final report. Ms. Hannan made a motion to accept the audit report and that all corrections have been implemented. Motion seconded by FF / Sec Ingold and carried by voice vote. FF Hoff said he would like to attend the four day trustee training in Hoffman Estates in October. FF /Sec Ingold made a motion for the pension fund to reimburse FF Hoff for cost of registration and per diem costs for the conference. Motion seconded by Ms. Hannan and carried by voice vote. 9. NEXT QUARTERLY MEETING The date for the next quarterly meeting of the Fire Pension Board of Trustees is set for Friday, July 27 at 9:30am. 9. ADJOURNMENT Having no further business to discuss, FF Hoff made a motion to adjourn the meeting,. Motion seconded by Ms. Hannan and carried by voice vote. The meeting was adjourned at 11 :09am. Date Approved: 7/J..7 JJS Kay Meharry Recording Secretary F::~ Jos I gold gh:/ Fund Senetary -