Firefighters Pension Board

NIT"ES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETIITIG 8350 DEMPSIER NttEs, lt 60714 MAY 18, 2017 The meeting was called to order at 8:34 a.m. by President Byron Tull. Trustees Present: Bob Greiner, Byron Tull, Walter Blase, James Callero (8:34 a.m. - 9:30 a.m.), and Marimel Lim. Officials Present: Tom Sawyer from Sawyer Falduto Asset Management, LLC, lnvestment Advisor to the Fund; Attorney Carolyn Clifford; Steve Earnhardt, Lauterbach & Amen, LLP; and Rich Scipione, Pension Clerk for the Fund. Public Comment: No public comment. Previous Minutes Approval: on a motion by Greiner, seconded by Blase, the minutes from the February 2,2017 meeting were approved by a unanimous voice vote. President Byron Tull reviewed the closed meeting minutes as required semi-annually. The minutes reviewed were: November 30, 2002 February 4, 2009 December 15, 2004 September 28, 2009 February 9, 2005 october 15, 2009 February 26, 2005 February 8, 2010 April 11, 2005 April 7, 2010 December7,2006 September 7, 2010 January 8, 2008 On a motion by Tull, seconded by Callero, to keep the listed meeting minutes closed for another six months. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None Motion carried. t  NITES FIREFIGHTERS, PEI{SION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER Nltfs, r[ 50714 M,ay 1.8,2OL7 Presentation by Lauterbach and Amen LLP: Steve reviewed the Niles Firefighters' Pension Fund Monthly Financial Report for the month ended March 31, 2017. Total assets March 31,2017 529,357,476.50 Liabilities March 31, 2017 53,629.33 Net Position Held in Trust for Pension Benefits 529,353,U7.L7 Steve presented the bills and disbursements for January 4, 2017 through March 30, 2Ot7 for a total of S166,868.97, check numbers 30094-30109. A motion was made by Callero, seconded by Greiner, to approve the payment of the bills and disbursements. Also to approve the January 2077, Feb(uary 2O!7 aod March 2017 financial statements as presented. Upon a call of the roll: AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None Motion carried. Roman Kopinski purchased two years of military service credit. Roman paid in full the 553,314.05 last month and now has a new entry date of February 17, 1995. A motion was made by Tull, seconded by Greiner, to approve Roman Kopinski's two years of military service credit at a cost of 553,314.05. Roman Kopinski's new entry date is February L7, L995. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None The lllinois Department of lnsurance annual report is due October 31n. Lauterbach and Amen are completing the audit work and financials at this time. We are expected to have the report completed prior to the due date. The actuarial report will be in draft form by the next quarterly meeting. Lauterbach and Amen are scheduled to present the draft in August. 2  NILES FIREFIGHTERg PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER Nrl"E rr 60714 May L8,2OL7 We should be receiving a bill for the Department of lnsurance compliance fee which will be due on June 30th. The Board discussed approving the DOI compliance fee up to 57,000. A motion was made by Tull, seconded by Blase, to approve payment of the DOI compliance fee up to S7,ooo. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None lnvestment Advisor's Report: Tom Sawyer from Sawyer Falduto presented the Fund's March 31, 2017 "Quarterly lnvestment Performance Report." The 2017 first quarter ending market value was S29,333,827, with an investment return of S1,059,734. The total account return for the first quarter was 3.70% versus the benchmark of 3.29%. The equity rate of return for the second quarter was 5.88% versus the blended benchmark of 5.48%. The fixed income rate of return was 0.99% versus the benchmark of 0.67%. Our current portfolio allocation as of March 31,2OL6: Equities at 57.2%, Fixed lncome at 47.5%, and cash Equivalent at 1.3%. There are no pending changes to the lnvestment Policy. Sawyer Falduto added a new mutual fund to the Fund's portfolio, Goldman Sachs lnternational Equity, GCllX. This fund is an lnstitutional Class equity with low fees. This mutual fund will replace American Beacon lnternational Equity which had been underperforming. The Board discussed the pending federalfiduciary rule. The federal fiduciary rule does not affect Sawyer Falduto because they already are subject to the State of lllinois' statutory requirement that they must be fiduciaries to their firefighter and police pension funds. A motion was made by Tull, seconded by Blase, to approve the Quarterly lnvestment Performance Report for the quarter ending March 37,2077. AYES: Greiner, Tull, Blase, Lim, and Callero NAYS: None ABSENT: None 3  NITES FIREFIGHTERY PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER NltEs, tt 60714 May 18, 2017 Tom presented the Annual lnvestment Professional Review and Oversight Checklist that he received from Carolyn. He provided all necessary documents and answered all questions from this checklist. This will be an annual exercise the Board and our lnvestment Advisor. iim Callero left at 9:30 a.m. Old Business: AII trustees completed and submitted their economac interest statement for Cook County. Byron Tull is our Department of lnsurance Administrator. The Security Administrator authorization form was completed and submitted in May of last year. The resolution authorizing signature authority has been tabled until the next quarterly meeting. carolyn sent all trustees the revised Board rules and forms which were approved at the Board's last meeting. The Board members discussed reimbursement for their meals when they travel. There were two suggestions made: (1) be paid a per diem for each day that you have traveled; or (2) turn in all receipts and be reimbursed for their actual expenses. After considering both methods, the trustees agreed to continue the practice of submitting their receipts from expenses for reimbursements. Consideration of and Action upon Applicants for Admission: Seven new firefighters joined the Niles Fire Department. Firefighter/Paramedic Albert ciucescu, Firefighter Paramedic Karl Boubouleix, Firefighter/Paramedic, and Firefighter/Paramedic Michael Segert started their employment on February L3, 2077. Firefighter/Paramedic Michael Butler and Firefighter/Paramedic Jonathan Hutchins started their employment on February 27, 2oL7. Firefighter/Paramedic Nicholas DeLaurentis had an initial start date of March 7, 2077. Firefighter/Paramedic John Monoscalco began his employment with the Niles Fire Department on April 70, 201.7 . They have applied for membership into the Niles Firefighters' Pension Fund. All seven members have passed all their medical assessments. All applications are for the Tier 2 pension fund membership. - On a motion by Tull, seconded by Lim, to approve membership into the Fund Nicholas DeLaurentis, Michael Butler, Jonathan Hutchins, Albert ciucescu, Karl Boubouleix, John Monoscalco, and Michael Segert. Upon a call of the roll: AYES: Greiner, Tull, Blase, and Lim NAYS: None ABSENT: Callero Motion carried. 4  NILES FIREFIGHTERS' PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NrtEs, tt 60714 May 18, 2017 Lauterbach and Amen did not receive any applications for refund of contribution from Nicholas DeLaurentis and Michael Butler. New Business: Byron Tull's term as pension trustee expires on May L,20L7. There was a letter posted and emailed to all active duty personnel. The Board only received one nomination, Byron Tull. Since there is only one person nominated for the position, the Board dispensed with the formal election and declared the only nominee elected by acclamation. On a motion by Greiner, seconded by Lim, the Board dispensed with the formal election and declared the only nominee elected by acclamation being Byron Tull. The term is a three-year term, May 1, 2017 April 30,2020. Upon a call ofthe roll: AYES: Greiner, Tull, Blase, and Lim NAYS: None ABSENT: Callero Motion carried. After a small discussion on the annual election of the Board president and secretary, a motion was made by Greiner, seconded by Blase, to elect Byron Tull as President of the Board and Bob Greiner as Secretary to the Board. Upon a call ofthe roll: AYES: Greiner, Blase, Tull, and Lim NAYS: None ABSENT: Callero Motion carried. A motion was made by Tull, seconded by Blase, to retain Richard Scipione as the Pension Clerk until April 30, 2018. Upon a call ofthe roll: AYES: Greiner, Tull, Blase, and Lim NAYS: None ABSENT: CaIIero Motion carried. A motion was made by Tull, seconded by Greiner, approve the Pension Clerk annual stipend of 51300. Upon a call ofthe roll: 5  NII.ES FIREFIGHTERg PENSION FUND BOARD OF TRUSTEES MEETING 8350 DEMPSTER N[."ES, tt 60714 May 1& 2017 AYES: Greiner, Tull, Blase, and Lim NAYS: None ABSENT: Callero Motion carried. There are two disabled individuals who require annual lMEs: Steve Zook and John Crosby. Byron Tull mailed them out with a due date in August. Carolyn is going to review the revised language in Lauterbach and Amen's engagement letter renewal. This item has been tabled to the third quarter meeting. The National Conference on Public Employee Retirement Systems or NCEPRS Code of Conduct form for Lauterbach and Amen and Sawyer and Falduto has been tabled to the third quarter meeting. The Board had approved a version of this Code of Conduct in its updated rules and will have its service providers sign the acknowledgement form for submission at the third quarter meeting. Pensioner John Carter had a change in marital status. John is now divorced with the divorce decree on file. There is no QILDRO on his pension. Training: Carolyn distributed training material for the Board to review. Training article that was reviewed included the white paper on Public Safety Pension Consolidation. The Board has designated one hour of training for this meetinB. Next Meeting: The next meeting is scheduled for August 10, 2017 at 8:30 a.m. The meeting was adjourned at 10:24 a.m. on a motion by Greiner, seconded by Lim, and approved upon a unanimous vote voice. Respectful ly submitted, {1,1,} l/u-- -__I__ Robert Greiner, Secretary Minutes approved by the Board of Trustees at its meeting on v- tA . 20L7 6  NITES FIREFIGHTER9 PENSION FUND BOARD OF TRUSTEES MEETING 8360 DEMPSTER NttEs, tt 60714 May 18, 2017 Minutes prepored by Rich kipione, Pension Clerk to the Fund 7