Fire Pension Board

MINUTES CITY OF DEKALB DeKalb Firefighters Pension Fund April 8, 2021 The Board of Trustees of the Firefighters Pension Fund held a regular meeting on April 8, 2021, at DeKalb Police Headquarters, 700 W. Lincoln Hwy., 2 nd Floor, Training Classroom, DeKalb, IL 60115. ROLL CALL President Eriksen called the meeting to order at 8:05 AM and conducted roll call. Pension Board members present were Chief Jeff McMaster, Bill Kalal, Ray Krueger, Pat Eriksen, and Chris Ziola. No members were absent. Guests in the attendance were attorney Tom Hartwell representing Collins Law, Assistant City Manager Josh Boldt, Administrative Assistant Natalie Nelson as recorder, and Financial consultant Craig Larsen who participated remotely with audio. APPROVAL OF THE AGENDA Bill Kalal motioned to approve the agenda as presented, Chris Ziola seconded the motion, and a voice vote was conducted. The motion passed unanimously. PUBLIC PARTICIPATION Pat Eriksen announced the presence of guests Tom Hartwell and Natalie Nelson. No comments were made. APPROVAL OF MINUTES Chief McMaster motioned to approve the minutes from the regular meeting held January 21, 2021, as presented, Ray Krueger seconded the motion, and a voice vote was conducted. The motion passed unanimously. OLD BUSINESS Seminars Pat Eriksen reported that IPAC is offering upcoming trainings. They are scheduled for June 3 -4, 2021. Attendance can be in-person or via Zoom. Bill Kalal stated he will attend. DeKalb Firefighters Pension Fund Board of Trustees April 8, 2021 Page 2 of 4 NEW BUSINESS Investment Manager Report Pat distributed hard copies of the First Quarter 2021 report to the Board members. Craig Larsen presented the DeKalb Firefighters Pension Fund Review and Analysis for First Quarter 2021. He summarized the executive summary, highlighting the one-year and quarterly returns, which are both historically large due to the market’s rebound. The 3- and 5-year returns are also very strong. He discussed overall stock performance and how stock held in GameStop was handled by the mutual fund when the stock price increased exponentially. He discussed how vaccine distribution and citizens saving their stimulus payments are affecting commerce and market performance. He noted that the federal government’s deficit spending may affect interest rates. He said the strong returns will most likely plateau. He recommended transferring $500,000 from the bond portfolio to Segall Bryant & Hammill. Craig Larsen asked if the schedule of routine tax deposits will return to normal. Assistant City Manager Josh Boldt explained that deposits during 2020 were delayed due to the pandemic but are expected to return to normal soon. Required Investment Transactions None. Approval of Financial Transactions and Financial Reports Chris Ziola motioned to approve the First Quarter 2021 financial report as presented and the transfer of $500,000 from the bond portfolio to Segal Bryant & Hamill. Bill Kalal seconded the motion. A roll call vote was conducted. Aye votes were cast by McMaster, Kalal, Krueger, Ericksen, and Ziola. No nay votes were cast. The motion passed. Review and Update Asset Allocation None. Accounts Payable – Review of Invoices and Expenses None. Retirements Jim Ruhl has expressed a desire to retire in August but has not submitted anything official. DeKalb Firefighters Pension Fund Board of Trustees April 8, 2021 Page 3 of 4 New Members In the next two months or so, three new firefighter/paramedics are expected to be hired. Request for Benefits A retiree has requested to buy back into the DeKalb Firefighters Pension fund after taking his investment to a new agency. Lauderbach & Amen is helping to determine if this is permitted. Tom Hartwell at Collins & Radja will be involved in the response. Discussion occurred regarding the unusual nature of this request. Military Service Time Buyback None. Service Breaks and Pension Funding None. Board Member Terms Ending and New Board Member Election Pat Eriksen announced that he and Chris Ziola will be stepping down as Active Member Trustees, so an election of new Active Member Trustees will occur. Pat Eriksen thanked Craig Larsen, Tom Hartwell and Cary Collins, Bill Kalal, and Chief McMaster for their participation and assistance with Pension Board matters. Chief McMaster thanked Pat Eriksen and Chris Ziola for their years of service to the Pension Board. Nominations were solicited for candidates and have been tallied. Ballots with each candidate’s name will be distributed few days before the election date, set for April 19, 2021. No special meeting is necessary to seat the newly elected members, which can occur at the next regular meeting on July 8, 2021. Currently Pat Eriksen, Chris Ziola, and Josh Boldt are signers to authorize financial transactions. They will remain authorized until the new members are seated at the next regular meeting on July 8, 2021. At that time, the two new members’ signatures will be added to the authorizations and the two former members’ signatures will be removed from the authorizations. Josh Boldt’s signature will continue to authorize financial transactions. Pat Eriksen stated he will attend the next regular meeting to assist with the new members’ transition. Craig Larsen thanked Pat Eriksen and Chris Ziola for their involvement in the Pension Board’s activities. DeKalb Firefighters Pension Fund Board of Trustees April 8, 2021 Page 4 of 4 Discussion of Topics for Next Meeting Agenda – July 8, 2021 • New trustees seated and officers elected/installed • Financial transactions • New hires joining the Pension fund • Updated rules and regulations – Tom Hartwell summarized the changes regarding remote member attendance and required training reductions. • Follow up on retiree request to re-buy-into DKFD Pension. Bill Kalal asked synopsis of consolidation developments to be sent to all retirees. Pat Eriksen will contact Steven Zahn for material. Tom Hartwell will also email Pat Eriksen material from the Illinois Municipal League to share with retirees. ADJOURNMENT Bill Kalal motioned to adjourn the meeting, Chris Ziola seconded the motion, and a voice was conducted. The motion passed unanimously. The meeting adjourned at 8:52 AM. Natalie Nelson, Recording Secretary Minutes approved by DeKalb Firefighters Pension Board on July 8, 2021.